Amortization of intangibles. We recorded $2.7 million of amortization of intangibles in fiscal year 2000 as compared to $1.2 million in fiscal year 1999. This increase is attributable to the amortization of the goodwill arising from the EFTC Services, Inc. and Bull Technology, Inc. acquisitions. Acquisition and Merger-Related Charge. During the first quarter of fiscal year 2000, we incurred $5.2 million in merger-related charges consisting of key employee severance and legal and professional fees associated with the GET merger. See Note 10 to the Consolidated Financial Statements. Interest Income. Interest income increased to $7.4 million in fiscal year 2000 from $4.5 million in fiscal year 1999 reflecting increased income on greater cash balances resulting from an equity offering completed in the fourth quarter. See Note 6 to the Consolidated Financial Statements of fiscal year 2000. Interest Expense. Interest expense increased to $7.6 million in fiscal year 2000, from $7.1 million in fiscal year 1999, primarily reflecting slightly increased short-term borrowings to support plant expansions and working capital needs. Income Taxes. In fiscal year 2000, our effective tax rate decreased to 31.5% from 36.4% in fiscal year 1999. The effective tax rate is predominantly a function of the mix of domestic versus international income from operations. See Note 5 to the Consolidated Financial Statements. Fiscal Year Ended August 31, 1999 Compared to Fiscal Year Ended August 31, 1998 Net Revenue. Our net revenue increased 50.8% to $2.2 billion for fiscal year 1999, up from $1.5 billion in fiscal year 1998. The increase was primarily due to incremental revenue resulting from the HP Acquisition as well as increased production of communication products. Foreign source revenue represented 40.5% of our net revenue for fiscal year 1999 and 41.0% of net revenue for fiscal year 1998. Gross Profit. Gross margin decreased to 11.0% in fiscal year 1999 from 11.9% in fiscal year 1998, reflecting a higher content of material-based revenue from the HP Acquisition and under-utilization of assets in certain international factories. Selling, General and Administrative. Selling, general and administrative expenses increased to $92.0 million (4.1% of net revenue) in fiscal year 1999 from $60.1 million (4.1% of net revenue) in fiscal year 1998. This increase was primarily due to continued increases in staffing and related departmental expenses at all of our locations, including the sites acquired in the HP Acquisitio...
Amortization of intangibles. Amortization of Intangibles of $1.2 million was recorded in fiscal year 1999 as a result of the HP Acquisition. See Note 10 to the Consolidated Financial Statements. Acquisition and Merger-Related Charges. During the fourth quarter of fiscal year 1999, we incurred $7.0 million in merger-related charges consisting of professional fees and other merger-related charges as part of the GET merger. See Note 10 to the Consolidated Financial Statements.
Amortization of intangibles. Adjustment records the net effect of amortization expense for intangible assets acquired from the Acquired Company at fair value: (in thousands, except weighted average life information) Intangible Amount Fair Value Pro Forma Amortization Expense Year Ended June 30, 2017 Pro Forma Amortization Expense Six Months Ended December 31, 2017 Weighted Average Lives (Years) Customer relationships $ 51,375 $ 4,467 $ 2,234 11.5 Backlog $ 2,185 2,185 1,093 1.0 Developed technology $ 14,320 1,469 734 9.8 Net amortization expense $ 8,121 $ 4,061 Adjustment D - Interest Expense on Debt Financing The purchase price of $180.0 million anticipates the use of $188.9 million of the Company's available $400.0 million revolving credit line, in consideration of cash and cash equivalents acquired of $8.9 million. The resulting cash free purchase price of $180.0 million has assumed average interest rates of 3.00% and 2.48% (based on 3-month LIBOR rate) for the six and twelve months ended December 31, 2017 and June 30, 2017, respectively. The actual rates of interest can change from those assumed. If the actual rates were to increase or decrease by 0.125% from those assumed, then pro forma interest expense could increase or decrease by approximately $0.2 million per year. The pro forma interest expense adjustments were $2.7 million and $4.5 million for the six months ended December 31, 2017 and twelve months ended June 30, 2017, respectively.
Amortization of intangibles. Adjustments to amortization of intangibles are comprised of the following: Nine months ended June 30, 2021 Twelve months ended September 30, 2020 Amortization of acquired ELFS intangible assets $ 427 $ 569 b. Interest expense: Adjustments to interest expense are comprised of the following: Nine months ended June 30, 2021 Twelve months ended September 30, 2020 Interest expense incurred on subordinated promissory notes to sellers $ 180 $ 240 Interest expense incurred on acquisition financing 301 401 Elimination of ELFS interest expense (64 ) (70 ) $ 417 $ 571 c. Income tax benefit (expense): We have reflected the applicable tax provision on the pro forma adjustments presented in the unaudited pro forma combined income statements based on the estimated respective statutory tax rate in the tax jurisdictions of the adjustments. Adjustments to Income tax benefit (expense) are comprised of the following: Nine months ended June 30, 2021 Twelve months ended September 30, 2020 Income tax benefit (expense) $ (294 ) $ (92 ) Adjustments to the unaudited pro forma combined balance sheet as of June 30, 2021, were as follows:
Amortization of intangibles presented as a separate line item in Medco’s historical financial statements, has been condensed into selling, general and administrative expense for consistent presentation in the unaudited pro forma condensed combined statements of operations. The unaudited pro forma condensed combined statements of operations for the year ended December 31, 2010 and for the nine months ended September 30, 2011 give effect to the proposed Mergers and the Related Financing Transactions as if they had occurred on the first day of the earliest period presented. The unaudited condensed combined balance sheet as of September 30, 2011 gives effect to the Mergers and the Related Financing Transactions as if they had occurred on September 30, 2011. The acquisition method of accounting is based on authoritative guidance for business combinations and uses the fair value concepts defined in authoritative guidance. We prepared the unaudited pro forma condensed combined financial information using the acquisition method of accounting under these existing U.S. GAAP standards. The authoritative guidance for business combinations requires, among other things, that assets acquired and liabilities assumed be recognized at their fair values as of the acquisition date if fair value can reasonably be estimated. If the fair value of an asset or liability that arises from a contingency cannot be determined, the asset or liability is recognized if it is probable that an asset existed or a liability has been incurred at the acquisition date and the amount of such asset or liability can be reasonably determined. In addition, the guidance establishes that the consideration transferred be measured at the closing date of the acquisition at the then-current market price. As the purchase price includes shares to be issued for consideration in the Mergers, this will likely result in an equity component that is different from the amount assumed in these unaudited pro forma condensed combined financial statements. The authoritative guidance for fair value defines the term “fair value,” sets forth the valuation requirements for any asset or liability measured at fair value, expands related disclosure requirements and specifies a hierarchy of valuation techniques based on the nature of inputs used to develop the fair value measures. Fair value is defined in the guidance as “the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participant...
Amortization of intangibles. Amortization of the EWV technology license will commence upon the commencement of operations of the EWV HEBioT facility, which is scheduled for during the first half of 2019.
Amortization of intangibles. Amortization of intangibles includes the amortization of all identified intangible assets (with the exception of goodwill), primarily resulting from acquisitions. Key Considerations Certain significant items or events must be considered to better understand differences in Broadlane’s results of operations from period to period. Xxxxxxxxx believes that the following 36 items or events have had a material impact on its results of operations for the periods discussed below or may have a material impact on its results of operations in future periods: Acquisitions On November 3, 2009, Broadlane acquired Healthcare Performance Partners (“HPP”), a leading boutique consulting firm based in Nashville, Tennessee, offering clinical and administrative solutions through lean healthcare and six sigma consulting services. On April 30, 2010, Broadlane acquired Health Equipment Logistics and Planning, Inc. (“HELP”), a company specializing in equipment planning, procurement and equipment services for healthcare organizations.
Amortization of intangibles. In connection with the TowerBrook Transaction, Xxxxxxxxx recognized certain definite-lived intangible assets on its Consolidated Balance Sheets. As a result, Xxxxxxxxx experienced a significant increase in its amortization expense in the years ended December 31, 2009 and 2008. Debt refinancing On February 5, 2010 Broadlane refinanced all the outstanding debt under its senior term loan, which among other things, provided $51.4 million in new proceeds for total borrowings of $180.0 million. The changes to the credit agreement under Xxxxxxxxx’s senior term loan resulted in a substantial modification as defined by GAAP, and as a result Broadlane accounted for the transaction as an extinguishment of debt. The new proceeds provided by the refinancing were used to extinguish Xxxxxxxxx’s senior subordinated notes and pay fees and expenses associated with the refinancing. As a result of the refinancing of its senior term loan and the extinguishment of its senior subordinated notes, Xxxxxxxxx recognized a total loss of $11.8 million related to the write-off of unamortized debt discount and issuance costs, fees and expenses and a 4% prepayment premium was charge on the senior subordinated notes. Refer to Note 5, Debt, of 37 the Notes to Xxxxxxxxx’s Condensed Consolidated Financial Statements elsewhere in this offering memorandum for a discussion of the refinancing. Early payments on debt • Senior term loan. In November 2009, Xxxxxxxxx made a $10.0 million prepayment on its term loan, and as a result Broadlane recognized a loss of $0.4 million related to the write-off of related deferred financing costs. • Senior subordinated notes. In October 2009, Xxxxxxxxx made a $21.6 million prepayment on its senior subordinated notes and as a result Broadlane recognized a loss on extinguishment of debt of $2.7 million as a result of a 4% prepayment premium and write-off of related debt discount and deferred financing costs. Results of operations Comparison of the nine months ended September 30, 2010 and September 30, 2009 Revenue The following table sets forth Broadlane’s revenue by revenue stream for the periods indicated (dollars in thousands): Nine months ended September 30, 2010 2009 Change % of % of Amount Revenue Amount Revenue Amount % Revenue: Administrative fees, net $ 88,121 67.5% $ 86,801 70.7% $ 1,320 1.5% Other service fees 42,525 32.5% 35,890 29.3% 6,635 18.5% Total revenue, net $ 130,646 100.0% $ 122,691 100.0% $ 7,955 6.5% Total revenue. Total revenue for the nin...
Amortization of intangibles. Amortization of intangibles for the nine months ended September 30, 2010 and September 30, 2009 was $12.0 million, or 9.1% of total net revenue and $12.0 million, or 9.7% of total net revenue, respectively. Non-operating expenses Interest expense. Interest expense for the nine months ended September 30, 2010 was $11.9 million, a decrease of $7.0 million from interest expense of $18.9 million for the nine months ended September 30, 2009. The decrease in interest expense is largely a result of the refinancing of Xxxxxxxxx’s debt on February 5, 2010. The refinancing lowered the interest rate on Xxxxxxxxx’s senior term loan from the higher of LIBOR or 3.25% plus an applicable margin of 5.25% to the higher of LIBOR or 2% plus an applicable margin of 4%. Income tax expense/benefit. Income tax benefit for the nine months ended September 30, 2010 was $3.0 million, a decrease of $3.4 million from income tax expense of $0.4 million for the nine months ended September 30, 2009, which was primarily attributable to decreased income before taxes as a result of the debt refinancing. 40 Comparison of years ended December 31, 2009 and December 31, 2008 Revenue The following table sets forth Broadlane’s revenue by revenue stream for the periods indicated (dollars in thousands): Year ended December 31, 2009 2008 Change % of % of Amount Revenue Amount Revenue Amount % Revenue: Administrative fees, net $ 117,730 70.3% $ 98,805 72.7% $ 18,925 19.2% Other service fees 49,794 29.7% 37,061 27.3% 12,733 34.4% Total revenue, net $ 167,524 100.0% $ 135,866 100.0% $ 31,658 23.3% Total revenue. Total revenue for the year ended December 31, 2009 was $167.5 million, an increase of $31.7 million, or 23.3%, from the year ended December 31, 2008. The increase in total revenue was comprised of a $18.9 million increase in Administrative fee revenue and a $12.7 million increase in Other service fee revenue. Administrative fee revenue. Revenue from Administrative fees were $117.7 million for the year ended December 31, 2009, an increase of $18.9 million, or 19.2%, from $98.8 million in revenue from Administrative fees for the year ended December 31, 2008. The increase in revenue was largely a result of the following: • Purchase accounting adjustment. On August 15, 2008, Xxxxxxxxx was substantially acquired by TowerBrook. At the close of the TowerBrook Transaction, Broadlane’s customers had purchased items on its contracts, but the fees earned did not qualify for revenue recognition as the purch...
Amortization of intangibles. Amortization of intangibles consists primarily of the amortization of the excess of purchase price over the fair market value of acquired assets and liabilities. RESULTS OF OPERATIONS The following table sets forth, for the periods indicated, historical Consolidated Statements of Earnings data as a percentage of total store and franchise revenues. Year ended December 31, Year ended December 31, --------------------------- --------------------------- (Company-owned stores only) (Franchise operations) 1999 1998 1997 1999 1998 1997 ---- ---- ---- ---- ---- ---- REVENUES Rentals and fees................... 93.3% 93.6% 94.9% --% --% --% Merchandise sales.................. 6.5 5.5 4.9 89.4 89.6 90.3 Other/Royalty income and fees...... 0.2 0.9 0.2 10.6 10.4 9.7 ----- ----- ----- ----- ----- ----- 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% ===== ===== ===== ===== ===== ===== OPERATING EXPENSES Direct store expenses Depreciation of rental merchandise................... 19.5% 21.7% 19.7% --% --% --% Cost of merchandise sold......... 5.4 4.2 3.9 86.2 86.6 86.6 Salaries and other expenses...... 56.6 55.7 56.0 -- -- -- ----- ----- ----- ----- ----- ----- 81.5 81.6 79.6 86.2% 86.6 86.6 General and administrative expenses......................... 2.9 3.5 3.8 5.1 4.9 5.3 Amortization of intangibles........ 2.0 2.0 1.7 0.6 0.7 1.0 Class action litigation settlements...................... -- 1.5 -- -- -- -- ----- ----- ----- ----- ----- ----- Total operating expenses........... 86.4 88.6 85.1 91.9 92.2 92.9 ----- ----- ----- ----- ----- ----- Operating profit................... 13.6 11.4 14.9 8.1 7.8 7.1 Interest expense/(income).......... 5.5 5.0 0.8 (0.8) (0.7) (0.6) Non-recurring financing costs...... -- 0.7 -- -- -- -- ----- ----- ----- ----- ----- ----- Earnings before income taxes....... 8.1% 5.7% 14.1% 8.9% 8.5% 7.7% ===== ===== ===== ===== ===== ===== Comparison of the Years ended December 31, 1999 and 1998 Total revenue increased by $607.5 million, or 75.0%, to $1,417.2 million for 1999 from $809.7 million for 1998. The increase in total revenue was primarily attributable to the inclusion of revenue from the Central Rents and Thorn Americas stores acquired during the year ended December 31, 1998 for the entire year ended December 31, 1999. Same store revenues increased by $25.3 million, or 7.7%, to $354.3 million for 1999 from $329.0 million in 1998. Same store revenues represent those revenues earned in stores that were operated by us for the entire years ending De...
