SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the
Securities Exchange Act of 1934
Date of Report (Date of earliest event reported):September 2, 2002
TIER TECHNOLOGIES, INC.
(Exact name of registrant as specified in its charter)
| California | 000-23195 | 94-3145844 | ||
| (State or other jurisdiction of incorporation) | (Commission File Number) | (IRS Employer Identification No.) | ||
1350 Treat Boulevard, Suite 250 Walnut Creek, California | 94597 | |||
| (Address of principal executive offices) | (Zip Code) |
(925) 937-3950
(Registrant's telephone number, including area code)
Item 2. Acquisition or Disposition of Assets.
On September 2, 2002, Tier Technologies, Inc., a California corporation (the "Company"), closed the sale to Oakton Limited of substantially all of the assets and certain liabilities of Tier Technologies (Australia) Pty Limited, ADC Consultants Pty Limited, and GC Simsion, GR Bowles & Associates Pty Limited (collectively "Tier Australia"). Purchase consideration for the sale totaled approximately $4.1 million in cash (based on current exchange rates) and selling costs are approximately $1.8 million (based on current exchange rates). The purchase price was determined by arms-length negotiations between representatives of the Company and Oakton Limited. The description of the transaction contained in this Item 2 is qualified in its enterity by reference to the full text of the Sale of Business Agreement, a copy of which was previously filed with the Company's Form 8-K filed August 20, 2002.
Item 7. Financial Statements and Exhibits.
Introduction
Pro Forma Condensed Consolidated Balance Sheet as of June 30, 2002 (unaudited)
Pro Forma Condensed Consolidated Statements of Operations for the nine months ended June 30, 2002 and 2001 (unaudited)
Pro Forma Condensed Consolidated Statement of Operations for the fiscal year ended September 30, 2001 (unaudited)
Pro Forma Condensed Consolidated Statement of Operations for the fiscal year ended September 30, 2000 (unaudited)
Pro Forma Condensed Consolidated Statement of Operations for the fiscal year ended September 30, 1999 (unaudited)
None
2
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
| TIER TECHNOLOGIES, INC. | |||
By: | /s/ LAURA B. DEPOLE Laura B. DePole Chief Financial Officer | ||
Date: September 17, 2002 | |||
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Unaudited Pro Forma
Condensed Consolidated Financial Information
On September 2, 2002, the Company completed the sale of substantially all of the assets and certain liabilities of Tier Australia. The unaudited pro forma financial information is filed as part of this current report to reflect the Company's disposition of Tier Australia.
The pro forma condensed consolidated financial statements have been adjusted to exclude the effect of Tier Australia for each respective financial statement period. The adjustments presented in the pro forma condensed consolidated statements of operations represent the pro forma historical results of Tier Australia. The adjustments presented in the pro forma condensed consolidated balance sheet assume that the disposition of Tier Australia occurred on June 30, 2002.
The unaudited pro forma condensed consolidated financial statements are presented for illustrative purposes only and are not necessarily indicative of the operating results or financial position that would have actually occurred if the disposition had been consummated as of the date indicated, nor are they necessarily indicative of future operating results or financial position.
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TIER TECHNOLOGIES, INC.
PRO FORMA CONDENSED CONSOLIDATED BALANCE SHEET
June 30, 2002
(in thousands)
(unaudited)
| | Company | Adjustments | | Pro Forma | ||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| ASSETS | ||||||||||||||
| Current assets: | ||||||||||||||
| Cash and cash equivalents | $ | 46,025 | $ | 4,509 | (2,4) | $ | 50,534 | |||||||
| Short-term investments | 15,501 | 15,501 | ||||||||||||
| Accounts receivable, net | 28,543 | 28,543 | ||||||||||||
| Prepaid expenses and other current assets | 4,857 | 1,600 | (2,5) | 6,457 | ||||||||||
| Total current assets | 94,926 | 6,109 | 101,035 | |||||||||||
Equipment and software, net | 7,916 | 7,916 | ||||||||||||
| Notes and accrued interest receivable from related parties | 2,051 | 2,051 | ||||||||||||
| Goodwill and other acquired intangible assets, net | 32,660 | 32,660 | ||||||||||||
| Long-term investments | 33,542 | 33,542 | ||||||||||||
| Other assets | 5,122 | 5,122 | ||||||||||||
| Net assets of discontinued operations | 4,105 | (4,105 | ) | (2,4) | — | |||||||||
| Total assets | $ | 180,322 | $ | 2,004 | $ | 182,326 | ||||||||
LIABILITIES AND SHAREHOLDERS' EQUITY | ||||||||||||||
| Current liabilities: | ||||||||||||||
| Accounts payable | $ | 1,153 | $ | 1,153 | ||||||||||
| Accrued liabilities | 5,543 | $ | 1,797 | (3) | 7,340 | |||||||||
| Accrued subcontractor expenses | 597 | 597 | ||||||||||||
| Accrued compensation and related liabilities | 3,222 | 3,222 | ||||||||||||
| Purchase price payable | 1,775 | 1,775 | ||||||||||||
| Liabilities of discontinued operation | — | 1,545 | (4) | 1,545 | ||||||||||
| Other current liabilities | 2,248 | 2,248 | ||||||||||||
| Total current liabilities | 14,538 | 3,342 | 17,880 | |||||||||||
| Long-term debt, less current portion | 282 | 282 | ||||||||||||
| Other liabilities | 286 | 286 | ||||||||||||
| Total liabilities | 15,106 | 3,342 | 18,448 | |||||||||||
Shareholders' equity: | ||||||||||||||
| Common stock, no par value | 163,519 | 3,389 | (1,5) | 166,908 | ||||||||||
| Notes receivable from shareholders | (1,773 | ) | (1,773 | ) | ||||||||||
| Accumulated other comprehensive loss | (587 | ) | (587 | ) | ||||||||||
| Retained earnings (deficit) | 4,057 | (4,727 | ) | (1,2,3) | (670 | ) | ||||||||
| Total shareholders' equity | 165,216 | (1,338 | ) | 163,878 | ||||||||||
| Total liabilities and shareholders' equity | $ | 180,322 | $ | 2,004 | $ | 182,326 | ||||||||
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TIER TECHNOLOGIES, INC.
PRO FORMA CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
For the Nine Months Ended June 30, 2002 and 2001
(in thousands, except per share data)
(unaudited)
| | For the nine months ended June 30, | ||||||
|---|---|---|---|---|---|---|---|
| | 2002(1) | 2001(1) | |||||
| Revenues(2) | $ | 71,404 | $ | 74,032 | |||
| Cost of revenues(2) | 42,751 | 46,121 | |||||
| Gross profit | 28,653 | 27,911 | |||||
| Costs and expenses: | |||||||
| Selling and marketing | 3,997 | 4,741 | |||||
| General and administrative | 12,039 | 12,728 | |||||
| Depreciation and amortization | 4,096 | 3,804 | |||||
| Income from continuing operations | 8,521 | 6,638 | |||||
| Interest income (expense), net | 1,103 | 669 | |||||
| Income from continuing operations before income taxes | 9,624 | 7,307 | |||||
| Provision for income taxes | 3,561 | 2,645 | |||||
| Income from continuing operations, net of income taxes | $ | 6,063 | $ | 4,662 | |||
Income from continuing operations, net of income taxes: | |||||||
| Per common share | $ | 0.36 | $ | 0.37 | |||
| Per diluted share | $ | 0.34 | $ | 0.35 | |||
| Shares used in computing basic income from continuing operations per share | 16,705 | 12,576 | |||||
| Shares used in computing diluted income from continuing operations per share | 17,944 | 13,177 | |||||
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TIER TECHNOLOGIES, INC.
PRO FORMA CONDENSED CONSOLIDATED STATEMENT OF OPERATIONS
For The Fiscal Year Ended September 30, 2001
(in thousands, except per share data)
(unaudited)
| | Company | Adjustments(1) | Pro Forma | |||||||
|---|---|---|---|---|---|---|---|---|---|---|
| Revenues(2) | $ | 116,648 | $ | (20,607 | ) | $ | 96,041 | |||
| Cost of revenues(2) | 71,936 | (13,387 | ) | 58,549 | ||||||
| Gross profit | 44,712 | (7,220 | ) | 37,492 | ||||||
Costs and expenses: | ||||||||||
| Selling and marketing | 7,887 | (1,615 | ) | 6,272 | ||||||
| General and administrative | 21,238 | (5,002 | ) | 16,236 | ||||||
| Depreciation and amortization | 7,193 | (2,041 | ) | 5,152 | ||||||
| Income from operations | 8,394 | 1,438 | 9,832 | |||||||
| Interest income (expense), net | 707 | 81 | 788 | |||||||
| Income before income taxes | 9,101 | 1,519 | 10,620 | |||||||
| Provision for income taxes | 3,549 | 338 | 3,887 | |||||||
| Net income | $ | 5,552 | $ | 1,181 | $ | 6,733 | ||||
| Basic net income per share | $ | 0.44 | $ | 0.53 | ||||||
| Shares used in computing basic net income per share | 12,687 | 12,687 | ||||||||
| Diluted net income per share | $ | 0.41 | $ | 0.50 | ||||||
| Shares used in computing diluted net income per share | 13,455 | 13,455 | ||||||||
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TIER TECHNOLOGIES, INC.
PRO FORMA CONDENSED CONSOLIDATED STATEMENT OF OPERATIONS
For The Fiscal Year Ended September 30, 2000
(in thousands, except per share data)
(unaudited)
| | Company | Adjustments(1) | Pro Forma | |||||||
|---|---|---|---|---|---|---|---|---|---|---|
| Revenues(2) | $ | 109,424 | $ | (26,452 | ) | $ | 82,972 | |||
| Cost of revenues(2) | 66,712 | (16,629 | ) | 50,083 | ||||||
| Gross profit | 42,712 | (9,823 | ) | 32,889 | ||||||
Costs and expenses: | ||||||||||
| Selling and marketing | 7,378 | (1,539 | ) | 5,839 | ||||||
| General and administrative | 22,923 | (5,617 | ) | 17,306 | ||||||
| Other nonrecurring charges | 2,195 | — | 2,195 | |||||||
| Depreciation and amortization | 6,100 | (1,928 | ) | 4,172 | ||||||
| Income from operations | 4,116 | (739 | ) | 3,377 | ||||||
| Interest income (expense), net | 899 | 4 | 903 | |||||||
| Income before income taxes | 5,015 | (735 | ) | 4,280 | ||||||
| Provision for income taxes | 2,696 | (449 | ) | 2,247 | ||||||
| Net income | $ | 2,319 | $ | (286 | ) | $ | 2,033 | |||
| Basic net income per share | $ | 0.19 | $ | 0.16 | ||||||
| Shares used in computing basic net income per share | 12,344 | 12,344 | ||||||||
| Diluted net income per share | $ | 0.18 | $ | 0.16 | ||||||
| Shares used in computing diluted net income per share | 12,740 | 12,740 | ||||||||
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TIER TECHNOLOGIES, INC.
PRO FORMA CONDENSED CONSOLIDATED STATEMENT OF OPERATIONS
For The Fiscal Year Ended September 30, 1999
(in thousands, except per share data)
(unaudited)
| | Company | Adjustments(1) | Pro Forma | ||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|
| Revenues(2) | $ | 91,976 | $ | (20,091 | ) | $ | 71,885 | ||||
| Cost of revenues(2) | 56,236 | (12,168 | ) | 44,068 | |||||||
| Gross profit | 35,740 | (7,923 | ) | 27,817 | |||||||
Costs and expenses: | |||||||||||
| Selling and marketing | 6,095 | (1,727 | ) | 4,368 | |||||||
| General and administrative | 19,596 | (3,787 | ) | 15,809 | |||||||
| Purchased in-process technology | 4,000 | — | 4,000 | ||||||||
| Reserve for contract dispute | 1,856 | — | 1,856 | ||||||||
| Depreciation and amortization | 3,864 | (1,340 | ) | 2,524 | |||||||
| Income (loss) from operations | 329 | (1,069 | ) | (740 | ) | ||||||
| Interest income (expense), net | 1,321 | (41 | ) | 1,280 | |||||||
| Income before income taxes | 1,650 | (1,110 | ) | 540 | |||||||
| Provision (benefit) for income taxes | 644 | (939 | ) | (295 | ) | ||||||
| Net income | $ | 1,006 | $ | (171 | ) | $ | 835 | ||||
| Basic net income per share | $ | 0.08 | $ | 0.07 | |||||||
| Shares used in computing basic net income per share | 12,056 | 12,056 | |||||||||
| Diluted net income per share | $ | 0.08 | $ | 0.06 | |||||||
| Shares used in computing diluted net income per share | 12,869 | 12,869 | |||||||||
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