EXHIBIT 99.1
The condensed consolidated balance sheets of Critical Path, Inc. reflect the actual audited condensed consolidated balance sheet as of December 31, 2000, the actual unaudited condensed consolidated balance sheet as of June 30, 2001 and the unaudited condensed consolidated pro forma balance sheet as of June 30, 2001. The pro forma balance sheet reflects certain adjustments related to the repurchase of $192 million of face value of its outstanding convertible subordinated notes, which occurred during the third quarter of 2001, as if the purchases had occurred on June 30, 2001.
In aggregate the pro forma balance sheet reflects cash paid of $50.7 million in principle and accrued interest and includes the affects of the reduction in cash related to the payment of principal of approximately $47.9 million and accrued interest of approximately $2.8 million and the elimination of the related outstanding principle of approximately $192.0 million and accrued interest of approximately $2.8 million. At June 30, 2001 unamortized debt issuance costs for Critical Path were approximately $8.2 million, and accordingly the pro forma balance sheet reflects a $5.4 million adjustment to write down the debt issuance costs related to the portion of the notes, which were repurchased. The repurchase of $192 million of face value of its outstanding convertible subordinated notes resulted in a significant net gain, and accordingly the pro forma balance sheet reflects an adjustment to shareholders' equity of approximately $138.7 million in extraordinary gain.
CRITICAL PATH, INC.
Condensed Consolidated Balance Sheets
(Unaudited)
(In thousands)
Actual | Actual | Pro Forma | ||||||||||||||||
December 31, | June 30, | June 30, | ||||||||||||||||
2000 | 2001 | 2001 | ||||||||||||||||
(Unaudited) | ||||||||||||||||||
ASSETS | ||||||||||||||||||
Current assets | ||||||||||||||||||
Cash, cash equivalents and short-term investments | $ | 216,542 | $ | 132,586 | $ | 81,890 | ||||||||||||
Restricted cash | 215 | 1,032 | 1,032 | |||||||||||||||
Accounts receivable, net | 38,938 | 29,437 | 29,437 | |||||||||||||||
Other current assets | 10,252 | 6,997 | 6,997 | |||||||||||||||
Total current assets | 265,947 | 170,052 | 119,356 | |||||||||||||||
Long-term investments | 10,610 | 8,349 | 8,349 | |||||||||||||||
Notes receivable from officers | 2,702 | 2,370 | 2,370 | |||||||||||||||
Property and equipment, net | 85,304 | 73,000 | 73,000 | |||||||||||||||
Intangible assets, net | 77,339 | 44,298 | 44,298 | |||||||||||||||
Other assets | 8,953 | 9,298 | 3,886 | |||||||||||||||
Total assets | $ | 450,855 | $ | 307,367 | $ | 251,259 | ||||||||||||
LIABILITIES AND SHAREHOLDERS’ EQUITY (DEFICIT) | ||||||||||||||||||
Current liabilities | ||||||||||||||||||
Accounts payable | $ | 43,710 | $ | 34,059 | $ | 31,296 | ||||||||||||
Accrued expenses | 10,377 | 7,645 | 7,645 | |||||||||||||||
Deferred revenue | 15,720 | 15,593 | 15,593 | |||||||||||||||
Capital lease and other obligations, current | 9,363 | 6,899 | 6,899 | |||||||||||||||
Total current liabilities | 79,170 | 64,196 | 61,433 | |||||||||||||||
Convertible subordinated notes payable | 300,000 | 295,000 | 102,990 | |||||||||||||||
Capital lease and other obligations, long-term | 4,687 | 2,303 | 2,303 | |||||||||||||||
Total liabilities | 383,857 | 361,499 | 166,726 | |||||||||||||||
Commitments and contingencies | ||||||||||||||||||
Minority interest in consolidated subsidiary | 649 | — | — | |||||||||||||||
Shareholders’ Equity (Deficit) | 66,349 | (54,132 | ) | 84,533 | ||||||||||||||
Total liabilities and shareholders’ equity (deficit) | $ | 450,855 | $ | 307,367 | $ | 251,259 | ||||||||||||