Exhibit 99.2
InfoSpace, Inc.
Reconciliation of Preliminary Condensed Consolidated Statements of Operations
(Unaudited)
(Amounts in thousands, except per share data)
| | | | | | | | | | | | | | | | | | | | | | |
| | Three months ended December 31, 2009 | | Year ended December 31, 2009 | |
| | Preliminary | | Adjustments | | | Revised Preliminary | | Preliminary | | | Adjustments | | | Revised Preliminary | |
Revenues | | $ | 70,457 | | $ | — | | | $ | 70,457 | | $ | 207,646 | | | $ | — | | | $ | 207,646 | |
Operating expenses: | | | | | | | | | | | | | | | | | | | | | | |
Content and distribution | | | 47,791 | | | — | | | | 47,791 | | | 126,493 | | | | — | | | | 126,493 | |
Systems and network operations | | | 2,483 | | | — | | | | 2,483 | | | 9,703 | | | | — | | | | 9,703 | |
Product development | | | 1,401 | | | — | | | | 1,401 | | | 5,617 | | | | — | | | | 5,617 | |
Sales and marketing | | | 6,603 | | | — | | | | 6,603 | | | 25,379 | | | | — | | | | 25,379 | |
General and administrative | | | 4,134 | | | — | | | | 4,134 | | | 23,586 | | | | — | | | | 23,586 | |
Depreciation and amortization | | | 1,812 | | | — | | | | 1,812 | | | 7,252 | | | | — | | | | 7,252 | |
| | | | | | | | | | | | | | | | | | | | | | |
Total operating expenses | | | 64,224 | | | — | | | | 64,224 | | | 198,030 | | | | — | | | | 198,030 | |
| | | | | | | | | | | | | | | | | | | | | | |
Operating income | | | 6,233 | | | — | | | | 6,233 | | | 9,616 | | | | — | | | | 9,616 | |
Gain (loss) on investments, net | | | 302 | | | — | | | | 302 | | | (4,714 | ) | | | — | | | | (4,714 | ) |
Other income, net | | | 1,137 | | | — | | | | 1,137 | | | 2,682 | | | | — | | | | 2,682 | |
| | | | | | | | | | | | | | | | | | | | | | |
Income from continuing operations before income taxes | | | 7,672 | | | — | | | | 7,672 | | | 7,584 | | | | — | | | | 7,584 | |
Income tax benefit (expense) | | | 2,431 | | | (2,361 | ) | | | 70 | | | 2,180 | | | | (2,361 | ) | | | (181 | ) |
| | | | | | | | | | | | | | | | | | | | | | |
Net income | | $ | 10,103 | | $ | (2,361 | ) | | $ | 7,742 | | $ | 9,764 | | | $ | (2,361 | ) | | $ | 7,403 | |
| | | | | | | | | | | | | | | | | | | | | | |
| | | | | | |
Net income per share - Basic | | $ | 0.29 | | $ | (0.07 | ) | | $ | 0.22 | | $ | 0.28 | | | $ | (0.07 | ) | | $ | 0.21 | |
| | | | | | |
Net income per share - Diluted | | $ | 0.28 | | $ | (0.07 | ) | | $ | 0.21 | | $ | 0.28 | | | $ | (0.07 | ) | | $ | 0.21 | |
| | | | | | |
Weighted average shares outstanding used in computing: | | | | | | | | | | | | | | | | | | | | | | |
Basic net income per share | | | 35,094 | | | | | | | 35,094 | | | 34,983 | | | | | | | | 34,983 | |
Diluted net income per share | | | 36,112 | | | | | | | 36,112 | | | 35,431 | | | | | | | | 35,431 | |
InfoSpace, Inc.
Reconciliation of Preliminary Condensed Consolidated Balance Sheets
(Unaudited)
(Amounts in thousands)
| | | | | | | | | | | | |
| | December 31, 2009 | |
| | Preliminary | | | Adjustments | | | Revised Preliminary | |
ASSETS | | | | | | | | | | | | |
| | | |
Current assets: | | | | | | | | | | | | |
Cash and cash equivalents | | $ | 83,750 | | | $ | — | | | $ | 83,750 | |
Short-term investments, available-for-sale | | | 142,647 | | | | — | | | | 142,647 | |
Accounts receivable, net | | | 28,466 | | | | — | | | | 28,466 | |
Notes and other receivables | | | 2,953 | | | | — | | | | 2,953 | |
Prepaid expenses and other current assets | | | 2,526 | | | | — | | | | 2,526 | |
| | | | | | | | | | | | |
Total current assets | | | 260,342 | | | | — | | | | 260,342 | |
| | | |
Property and equipment, net | | | 12,315 | | | | — | | | | 12,315 | |
Goodwill | | | 44,815 | | | | — | | | | 44,815 | |
Other intangible assets, net | | | 457 | | | | — | | | | 457 | |
Other long-term assets | | | 4,287 | | | | — | | | | 4,287 | |
| | | | | | | | | | | | |
Total assets | | $ | 322,216 | | | $ | — | | | $ | 322,216 | |
| | | | | | | | | | | | |
| | | |
LIABILITIES AND STOCKHOLDERS’ EQUITY | | | | | | | | | | | | |
| | | |
Current liabilities: | | | | | | | | | | | | |
Accounts payable | | $ | 6,736 | | | $ | — | | | $ | 6,736 | |
Accrued expenses and other current liabilities | | | 34,131 | | | | — | | | | 34,131 | |
| | | | | | | | | | | | |
Total current liabilities | | | 40,867 | | | | — | | | | 40,867 | |
| | | |
Other long-term liabilities | | | 1,514 | | | | — | | | | 1,514 | |
| | | | | | | | | | | | |
Total liabilities | | | 42,381 | | | | — | | | | 42,381 | |
| | | |
Stockholders’ equity: | | | | | | | | | | | | |
Common stock | | | 4 | | | | — | | | | 4 | |
Additional paid-in capital | | | 1,301,306 | | | | 2,361 | | | | 1,303,667 | |
Accumulated deficit | | | (1,022,815 | ) | | | (2,361 | ) | | | (1,025,176 | ) |
Accumulated other comprehensive income | | | 1,340 | | | | — | | | | 1,340 | |
| | | | | | | | | | | | |
Total stockholders’ equity | | | 279,835 | | | | — | | | | 279,835 | |
| | | | | | | | | | | | |
Total liabilities and stockholders’ equity | | $ | 322,216 | | | $ | — | | | $ | 322,216 | |
| | | | | | | | | | | | |
InfoSpace, Inc.
Reconciliation of Preliminary Condensed Consolidated Statements of Cash Flows
(Unaudited)
(Amounts in thousands)
| | | | | | | | | | | | | | | | |
| | Year Ended December 31, 2009 | |
| | Preliminary | | | Adjustments | | | Reclassification(1) | | | Revised Preliminary | |
Operating activities: | | | | | | | | | | | | | | | | |
Net income | | $ | 9,764 | | | $ | (2,361 | ) | | $ | — | | | $ | 7,403 | |
Adjustments to reconcile net income to net cash provided by operating activities: | | | | | | | | | | | | | | | | |
Loss on investments, net | | | 4,714 | | | | — | | | | — | | | | 4,714 | |
Stock-based compensation | | | 10,568 | | | | — | | | | — | | | | 10,568 | |
Depreciation and amortization | | | 7,252 | | | | — | | | | — | | | | 7,252 | |
Loss on disposals of property and equipment | | | 642 | | | | — | | | | — | | | | 642 | |
Deferred income taxes | | | (2,521 | ) | | | — | | | | 5,335 | | | | 2,814 | |
Excess tax benefits from stock-based award activity | | | 4,568 | | | | (5,175 | ) | | | — | | | | (607 | ) |
Other | | | 377 | | | | — | | | | — | | | | 377 | |
Cash provided (used) by changes in operating assets and liabilities: | | | | | | | | | | | | | | | | |
Accounts receivable | | | (13,043 | ) | | | — | | | | — | | | | (13,043 | ) |
Notes and other receivables | | | (2,104 | ) | | | — | | | | — | | | | (2,104 | ) |
Prepaid expenses and other current assets | | | (759 | ) | | | — | | | | — | | | | (759 | ) |
Other long-term assets | | | 712 | | | | — | | | | — | | | | 712 | |
Accounts payable | | | 641 | | | | — | | | | — | | | | 641 | |
Accrued expenses and other current and long-term liabilities | | | 13,310 | | | | 2,361 | | | | (5,335 | ) | | | 10,336 | |
| | | | | | | | | | | | | | | | |
Net cash provided by operating activities | | | 34,121 | | | | (5,175 | ) | | | — | | | | 28,946 | |
| | | | |
Investing activities: | | | | | | | | | | | | | | | | |
Business acquisition, net of cash acquired | | | (395 | ) | | | — | | | | — | | | | (395 | ) |
Purchases of property and equipment | | | (2,435 | ) | | | — | | | | — | | | | (2,435 | ) |
Other long-term assets | | | (50 | ) | | | — | | | | — | | | | (50 | ) |
Proceeds from the sale of assets | | | 623 | | | | — | | | | — | | | | 623 | |
Proceeds from sales and maturities of investments | | | 196,856 | | | | — | | | | — | | | | 196,856 | |
Purchases of investments | | | (190,178 | ) | | | — | | | | — | | | | (190,178 | ) |
| | | | | | | | | | | | | | | | |
Net cash provided by investing activities | | | 4,421 | | | | — | | | | — | | | | 4,421 | |
| | | | |
Financing activities: | | | | | | | | | | | | | | | | |
Proceeds from stock option exercises and issuance of stock through employee stock purchase plan | | | 404 | | | | — | | | | — | | | | 404 | |
Repayment of capital lease obligations | | | (564 | ) | | | — | | | | — | | | | (564 | ) |
Excess tax benefits from stock-based award activity | | | (4,568 | ) | | | 5,175 | | | | — | | | | 607 | |
| | | | | | | | | | | | | | | | |
Net cash used by financing activities | | | (4,728 | ) | | | 5,175 | | | | — | | | | 447 | |
| | | | |
Net increase in cash and cash equivalents | | | 33,814 | | | | — | | | | — | | | | 33,814 | |
| | | | |
Cash and cash equivalents: | | | | | | | | | | | | | | | | |
Beginning of period | | | 49,936 | | | | — | | | | — | | | | 49,936 | |
| | | | | | | | | | | | | | | | |
End of period | | $ | 83,750 | | | $ | — | | | $ | — | | | $ | 83,750 | |
| | | | | | | | | | | | | | | | |
(1) | Reclassification of clerical error unrelated to the non-cash error identified in the income tax provision. |