EXHIBIT (d)(8)
SCHEDULE OF PERFORMANCE METRICS
This Schedule of Performance Metrics contains unaudited preliminary data
based on internal flash reports generated for the purpose of measuring and
reporting operating results on an accrual basis to management for its use in the
ordinary course of business. Actual operating results, when reported in
conformance with GAAP, will be different than those reported on an accrual
basis. For purposes of the preceding two sentences, the term "accrual basis"
shall mean financial statements which materially reflect the financial position,
operations and cash flows of Company, but which depart from GAAP. Such
departures from GAAP are described in this Schedule of Performance Metrics and
the financial information contained in this Schedule of Performance Metrics can
be expected to be adjusted pursuant to GAAP as a result of an audit by Company's
independent auditors.
Because the Performance Metrics are not in conformity with GAAP, they are
not comparable to the 2003 Audited financial Statements.
STATEMENTS OF OPERATIONS & STATEMENTS OF CASH FLOWS FOR THE THREE AND NINE
MONTHS ENDED SEPTEMBER 30, 2004
Subject to the adjustments described herein, the statements of operations
and related cash flow statements for the nine months ended September 30, 2004,
in all material respects, represent to the best of Company's knowledge, the
operating performance of Tickets.com and its wholly owned subsidiaries for the
period ended September 30, 2004. These schedules are not in conformance with US
GAAP, are unaudited, and are not comparable to any other published financial
statements of Company. They are compiled from Company's books and records. The
statements of operations and cash flow statements are subject to further
adjustment, primarily due to non-cash items such as accretion of preferred
stock, adjustments of embedded derivatives and warrants, capitalization and or
amortization of software development costs, amortization of intangible assets,
as well as the elimination of intercompany revenues and related expenses.
UNCONSOLIDATED BALANCE SHEETS AS OF DECEMBER 31, 2004
Subject to the adjustments described herein, the unconsolidated balance
sheets, in all material respects, represent to the best of Company's knowledge,
the financial position and the assets and liabilities of Tickets.com and its
wholly owned subsidiaries as of December 31, 2004. These balance sheets are not
in conformance with US GAAP, are unaudited, and are not comparable to any other
published financial statements of Company. They are compiled from Company's
books and records. The balance sheets are subject to further adjustment,
including, elimination entries upon consolidation, reconciliation of the
intercompany accounts, adjustments to reflect US GAAP accounting for preferred
stock and warrants, adjustments to embedded derivatives, reconciliation of
deferred revenue, analysis of goodwill & intangible assets for impairment under
FAS 142 & 144, Analysis of 2004 software development activities that should be
capitalized under FAS 86 or SOP 98-1, and reconciliation of 2004 fixed assets
and related depreciation.
TERMINOLOGY
- TICKETING REVENUE -- convenience and order processing fees (net of
shared revenue), commissions and contra revenue items. Includes fees
associated with both the full services and licensing businesses.
Also includes amortization of MLB buyout.
- LICENSING REVENUE -- software licensing and support fees, equipment
and consulting services.
- ANCILLARY REVENUE -- sponsorship, hosting and franchise fees; ticket
stock sales.
- SALES & MARKETING EXPENSE -- sales representatives, advertising and
marketing expenses.
- DEVELOPMENT EXPENSE -- technical management, product admin and
software development.
- CLIENT SERVICES EXPENSE -- full service client support.
- ADMINISTRATION EXPENSE -- executive, accounting, human resources,
corporate expenses.
- OPERATIONS EXPENSE -- telecom, technical support, network and
database administration.
-UNAUDITED-- SUBJECT TO CHANGE-
2
STATEMENT OF OPERATIONS
Q3 ACTUALS VS. FORECAST
(DOMESTIC VS. INT'L)
DOMESTIC INTERNATIONAL COMPANY % OF TOTAL
--------------------------- --------------------------- --------------------------- -------------
IN $000S ACTUAL 8/5 FCST VAR ACTUAL 8/5 FCST VAR ACTUAL 8/5 FCST VAR DOM INT'L
------ -------- ------- ------ -------- ------- ------ -------- ------- ----- -----
Ticketing Revenue 8,803 9,491 (688) 297 297 0 9,100 9,788 (688) 97% 3%
Tech Licensing Revenue 1,860 1,853 7 1,221 1,259 (38) 3,081 3,112 (32) 60% 40%
Ancillary Revenue 447 421 26 200 144 56 647 565 82 69% 31%
------ -------- ------- ------ -------- ------- ------ -------- ------- ----- -----
Operating Revenues 11,110 11,765 (655) 1,719 1,701 18 12,828 13,465 (637) 87% 13%
Credit Card Fees 2,603 3,801 (1,198) 250 129 121 2,853 3,930 (1,077) 91% 9%
------ -------- ------- ------ -------- ------- ------ -------- ------- ----- -----
TOTAL NET REVENUES 13,713 15,566 (1,853) 1,969 1,830 139 15,682 17,396 (1,714) 87% 13%
COST OF SERVICES 5,566 7,638 (2,072) 786 812 (27) 6,352 8,451 (2,098) 88% 12%
GROSS PROFIT 8,147 7,928 219 1,183 1,018 165 9,329 8,945 384 87% 13%
Gross Margin % 59.4% 50.9% 8.5% 60.1% 55.6% 4.5% 59.5% 51.4% 8.1%
Gross Margin % (ExclCC) 74.3% 71.3% 3.1% 68.3% 61.6% 6.7% 73.5% 70.0% 3.5%
Sales & Marketing 998 1,018 (20) 248 168 79 1,246 1,186 60 80% 20%
Development 3,113 2,882 231 198 149 48 3,311 3,032 279 94% 6%
Client Services 1,625 1,794 (170) 1 -- 1 1,626 1,794 (169) 100% 0%
Administration 4,550 4,193 358 928 651 277 5,478 4,844 634 83% 17%
------ -------- ------- ------ -------- ------- ------ -------- ------- ----- -----
Operating Expenses 10,286 9,888 399 1,374 969 406 11,661 10,856 804 88% 12%
OPERATING INCOME (2,140) (1,960) (180) (192) 49 (240) (2,331) (1,911) (420) 92% 8%
Interest (Inc) / Exp (34) -- (34) (3) 2 (4) (36) 2 (38) 93% 7%
Other (Inc) / Exp (1,282) -- (1,282) (15) 0 (15) (1,297) 0 (1,297) 99% 1%
------ -------- ------- ------ -------- ------- ------ -------- ------- ----- -----
Net Income Before (824) (1,960) 1,136 (174) 47 (221) (998) (1,913) 915 83% 17%
Taxes
Taxes 138 44 94 -- -- -- 138 44 94 100% 0%
------ -------- ------- ------ -------- ------- ------ -------- ------- ----- -----
NET INCOME / (LOSS) (962) (2,004) 1,042 (174) 47 (221) (1,136) (1,957) 821 85% 15%
====== ======== ======= ====== ======== ======= ====== ======== ======= ===== =====
EBITDA (1,605) (1,299) (306) (183) 75 (258) (1,788) (1,224) (563) 90% 10%
-UNAUDITED-- SUBJECT TO CHANGE-
3
STATEMENT OF OPERATIONS
YEAR-TO-DATE ACTUALS
(CONSOLIDATED)
2004 YTD
ACTUALS CURRENT ACTUAL VS.
------------------------------------- -----------------------------------------------------
IN $000S ACT 8/5 FCST BGT LY 8/5 FCST % BGT % LY %
------- -------- ------- ------ -------- ----- ------- ----- ------ -----
Ticketing Revenue 31,881 31,575 31,316 29,977 306 1% 565 2% 1,904 6%
Tech Licensing Revenue 10,452 10,483 10,674 10,317 (32) 0% (222) (2)% 135 1%
Ancillary Revenue 1,950 1,861 1,656 1,397 89 5% 294 18% 552 40%
------- -------- ------- ------ -------- ----- ------- ----- ------ -----
Operating Revenues 44,283 43,919 43,645 41,692 363 1% 637 1% 2,591 6%
Credit Card Fees 10,785 11,862 12,041 12,043 (1,077) (9)% (1,255) (10)% (1,258) (10)%
------- -------- ------- ------ -------- ----- ------- ----- ------ -----
TOTAL NET REVENUES 55,068 55,781 55,686 53,734 (713) (1)% (618) (1)% 1,333 2%
COST OF SERVICES 22,213 24,305 25,096 24,734 (2,092) (9)% (2,884) (11)% (2,521) (10)%
GROSS PROFIT 32,855 31,477 30,590 29,001 1,379 4% 2,266 7% 3,854 13%
Gross Margin % 59.7% 56.4% 54.9% 54.0% 3.2% 4.7% 5.7%
Gross Margin %(Excl CC) 74.1% 72.4% 71.9% 70.7% 1.7% 2.2% 3.4%
Sales & Marketing 3,993 3,822 5,146 5,789 171 4% (1,154) (22)% (1,796) (31)%
Development 9,466 9,187 8,856 9,490 279 3% 610 7% (25) 0%
Client Services 5,049 5,424 5,318 5,223 (375) (7)% (269) (5)% (174) (3)%
Administration 17,093 16,367 14,119 14,101 725 4% 2,974 21% 2,992 21%
------- -------- ------- ------ -------- ----- ------- ----- ------ -----
Operating Expenses 35,600 34,799 33,438 34,603 800 2% 2,161 6% 997 3%
OPERATING INCOME (2,744) (3,323) (2,849) (5,602) 578 17% 104 4% 2,858 51%
Interest (Inc) / Exp 17 55 5 (83) (38) (70)% 11 214% 100 120%
Other (Inc) / Exp (5,076) (3,779) 1 (6,276) (1,297) (34)% (5,077) #### 1,200 19%
------- -------- ------- ------ -------- ----- ------- ----- ------ -----
Net Income Before Taxes 2,315 402 (2,855) 757 1,913 476% 5,170 181% 1,558 206%
Taxes 236 143 131 128 94 66% 105 80% 108 84%
------- -------- ------- ------ -------- ----- ------- ----- ------ -----
NET INCOME / (LOSS) 2,079 260 (2,986) 629 1,819 701% 5,064 170% 1,450 230%
======= ======== ======= ====== ======== ===== ======= ===== ====== =====
EBITDA (926) (1,361) 213 (1,118) 435 32% (1,139) # # # 191 17%
-UNAUDITED-- SUBJECT TO CHANGE-
4
STATEMENT OF OPERATIONS
YTD ACTUALS VS. BUDGET
(DOMESTIC VS. INT'L)
DOMESTIC INTERNATIONAL COMPANY % OF TOTAL
------------------------- ------------------------- ------------------------- -------------
IN $000S ACTUAL BUDGET VAR ACTUAL BUDGET VAR ACTUAL BUDGET VAR DOM INT'L
------ ------ ------- ------ ------ ------- ------ ------ ------- ----- -----
Ticketing Revenue 31,191 30,504 687 690 812 (122) 31,881 31,316 565 98% 2%
Tech Licensing Revenue 5,883 6,534 (651) 4,568 4,139 429 10,452 10,674 (222) 56% 44%
Ancillary Revenue 1,340 1,173 168 609 483 127 1,950 1,656 294 69% 31%
------ ------ ------- ------ ------ ------- ------ ------ ------- ----- -----
Operating Revenues 38,415 38,211 204 5,867 5,434 433 44,283 43,645 637 87% 13%
Credit Card Fees 10,031 11,685 (1,653) 754 356 398 10,785 12,041 (1,255) 93% 7%
------ ------ ------- ------ ------ ------- ------ ------ ------- ----- -----
TOTAL NET REVENUES 48,446 49,896 (1,449) 6,622 5,790 831 55,068 55,686 (618) 88% 12%
COST OF SERVICES 19,816 22,694 (2,879) 2,397 2,402 (5) 22,213 25,096 (2,884) 89% 11%
GROSS PROFIT 28,631 27,201 1,429 4,225 3,388 836 32,855 30,590 2,266 87% 13%
Gross Margin % 59.1% 54.5% 4.6% 63.8% 58.5% 5.3% 59.7% 54.9% 4.7%
Gross Margin % (ExclCC) 74.6% 73.1% 1.5% 71.2% 63.8% 7.4% 74.1% 71.9% 2.2%
Sales & Marketing 3,337 4,466 (1,129) 656 680 (24) 3,993 5,146 (1,154) 84% 16%
Development 8,874 8,415 459 592 440 152 9,466 8,856 610 94% 6%
Client Services 5,040 5,318 (278) 9 -- 9 5,049 5,318 (269) 100% 0%
Administration 14,644 12,632 2,012 2,449 1,487 962 17,093 14,119 2,974 86% 14%
------ ------ ------- ------ ------ ------- ------ ------ ------- ----- -----
Operating Expenses 31,894 30,831 1,063 3,705 2,607 1,098 35,600 33,438 2,161 90% 10%
OPERATING INCOME (3,264) (3,630) 366 520 781 (262) (2,744) (2,849) 104 119% (19)%
Interest (Inc) / Exp 30 -- 30 (14) 5 (19) 17 5 11 183% (83)%
Other (Inc) / Exp (5,246) -- (5,246) 170 1 169 (5,076) 1 (5,077) 103% (3)%
------ ------ ------- ------ ------ ------- ------ ------ ------- ----- -----
NET INCOME BEFORE 1,952 (3,630) 5,581 363 775 (412) 2,315 (2,855) 5,170 84% 16%
TAXES
Taxes 256 131 124 (19) -- (19) 236 131 105 108% (8)%
------ ------ ------- ------ ------ ------- ------ ------ ------- ----- -----
NET INCOME / (LOSS) 1,696 (3,761) 5,457 383 775 (392) 2,079 (2,986) 5,064 82% 18%
====== ====== ======= ====== ====== ======= ====== ====== ======= ===== =====
EBITDA (1,504) (648) (857) 578 861 (282) (926) 213 (1,139) 162% (62)%
-UNAUDITED-- SUBJECT TO CHANGE-
5
STATEMENT OF CASH FLOW
CASH FLOWS FROM OPERATING ACTIVITIES Q3 YTD
---------- ----------
Net income (loss) (1,135,729) 2,086,751
Adjustments to reconcile net income (loss) to net assets
provided by (used in) operating activities
Depreciation 201,000 856,900
Bad debt expense (147,627) (109,286)
Changes in operating assets and liabilities:
AR, net 2,071,539 (421,569)
Credit card & Outlet receivables 365,816 2,288,917
Prepaid expenses and other current assets 410,044 903,220
Other assets 232,423 988,809
Accounts payable (4,591,139) (5,672,469)
Accrued payables (767,294) (1,564,294)
Deferred revenue 452,247 1,839,617
Other payables and accruals 71,729 205,209
---------- ----------
Net cash provided by (used in) operating activities (2,836,991) 1,401,805
---------- ----------
CASH FLOWS FROM INVESTING ACTIVITIES 0
Purchase of property and equipment (426,262) (1,667,578)
Restricted cash 1,256,641 2,572,462
---------- ----------
Net cash used in investing activities 830,379 904,884
---------- ----------
FINANCING ACTIVITIES 0
Principal payments on capital leases (20,059) (213,695)
Proceeds from preferred stock conversions 0 165
---------- ----------
Net cash used provided by investing activities (20,059) (213,530)
---------- ----------
Effect of exchange rate changes on cash 22,738 13,233
---------- ----------
Net increase in cash and cash equivalents (2,003,933) 2,106,392
Cash and cash equivalents, beginning of year 14,506,146 10,395,821
---------- ----------
Cash and cash equivalents, end of year 12,502,213 12,502,213
========== ==========
-UNAUDITED-- SUBJECT TO CHANGE-
6
GROSS PROFIT -- TRENDED
(CONSOLIDATED)
(IN $000S)
(BAR CHART)
'03 Q1 '03 Q2 '03 Q3 '03 Q4 '04 Q1 '04 Q2 '04 Q3 '04 Q4
------ ------ ------ ------ ------ ------ ------ ------
GROSS MARGIN 51.9% 56.4% 53.5% 50.4% 60.3% 59.1% 59.5% 53.4%
GROSS PROFIT 9,159 10,367 9,475 6,871 12,817 10,709 9,329 6,967
-UNAUDITED-- SUBJECT TO CHANGE-
7
SCHEDULE OF ASSETS/LIABILITIES
DECEMBER 31, 2004 PRELIMINARY BALANCE SHEET INFORMATION
[USD IN THOUSANDS]
UNAUDITED, UNCONSOLIDATED
-------------------------
PRELIMINARY
-------------------------
DOMESTIC INTERNATIONAL
-------- -------------
ASSETS:
Current assets:
Cash 3,330 1,019
Restricted Cash 5,567 1,100
Accounts receivable, net 4,022 1,696
Prepaids & other current assets 4,057 2,770
-------- -------------
Total current assets 16,976 6,585
Property and equipment, net 2,701 352
Capitalized software costs, net 609 --
Goodwill & intangible assets 15,630 --
Other assets 2,908 49
Intercompany 6,470 --
-------- -------------
Total assets 45,294 6,986
======== =============
LIABILITIES AND STOCKHOLDERS' EQUITY:
Current liabilities
Accounts payable 11,764 2,229
Accrued liabilities 4,539 1,550
Deferred revenue 6,134 6,399
Other liabilities 380 --
-------- -------------
Total current liabilities 22,817 10,178
Long term liablities 177 34
Intercompany liability -- 7,648
Embedded derivatives 3,608 --
Warrant liability 654 --
Preferred stock 22,067 --
-------- -------------
Total liabilities 49,323 17,860
Stockholders' Deficit (4,029) (10,874)
-------- -------------
45,294 6,986
======== =============
NOTES:
Subject to the adjustments described herein, these balance sheets, in all
material respects, represents to the best of Company's knowledge, the financial
position, assets and liabilities of Tickets.com and its wholly owned
subsidiaries as of December 31, 2004. These balance sheets are based on
preliminary data, are not in conformance with US GAAP, are unaudited, and are
not comparable to any other published financial statements of the Company. They
are compiled from Company's books and records. The balance sheets are subject to
further adjustment, including, elimination entries upon consolidation,
reconciliation of the intercompany accounts, adjustments to reflect US GAAP
accounting for preferred stock and warrants, adjustments to embedded
derivatives, reconciliation of deferred revenue, analysis of goodwill &
intangible assets for impairment under FAS 142 & 144, Analysis of 2004 software
development activities that should be capitalized under FAS 86 or SOP 98-1, and
reconciliation of 2004 fixed assets and related depreciation.
-UNAUDITED-- SUBJECT TO CHANGE-
8