EX-99.1 2 c23562exv99w1.htm UNAUDITED PRO FORMA CONDENSED CONSOLIDATED FINANCIAL STATEMENTS exv99w1
 

Exhibit 99.1
SYNOVIS LIFE TECHNOLOGIES, INC.
PRO FORMA CONSOLIDATED BALANCE SHEET
(Unaudited)
(in thousands, except share and per share data)
                         
            Pro Forma        
As of October 31, 2007   As Reported     Adjustments     Pro Forma  
 
ASSETS
                        
Current assets:
                        
Cash and cash equivalents
   $ 9,578     $  27,625   (1)   $ 37,203  
Short-term investments
     44,100       —       44,100  
Accounts receivable, net
     8,764       (3,670 ) (2)     5,094  
Inventories
     9,982       (5,082 ) (2)     4,900  
Deferred income tax asset, net
     805       (441 ) (3)     364  
Other current assets
     1,111       (169 ) (2)     942  
 
                  
Total current assets
     74,340       18,263       92,603  
 
                        
Property, plant and equipment, net
     10,115       (6,836 ) (2)     3,279  
Goodwill
     7,079       (4,093 ) (2)     2,986  
Other intangible assets, net
     2,467       (197 ) (2)     2,270  
Deferred income tax asset, net
     676       213   (3)     889  
Other assets — restricted cash
     —       2,950   (1)     2,950  
 
                  
Total assets
   $ 94,677     $ 10,300     $ 104,977  
 
                  
 
                        
LIABILITIES AND SHAREHOLDERS’ EQUITY
                        
Current liabilities:
                        
Accounts payable
   $ 2,069     $ (1,036 ) (2)   $ 1,033  
Accrued expenses
   $ 5,655     $ 590   (4)   $ 11,947  
 
           5,702   (3)        
 
                  
Total current liabilities
     7,724       5,256       12,980  
 
                        
 
                  
Total liabilities
     7,724       5,256       12,980  
 
                  
 
                        
Commitments and contingencies
                        
 
                        
Shareholders’ equity:
                        
Preferred stock
     —       —       —  
Common stock
     124       —       124  
Additional paid-in capital
     78,347       —       78,347  
Retained earnings
     8,482       10,974   (5)     13,526  
 
             (5,930 ) (3)        
 
                  
Total shareholders’ equity
     86,953       5,044       91,997  
 
                  
Total liabilities and shareholders’ equity
   $ 94,677     $ 10,300     $ 104,977  
 
                  

 

 

SYNOVIS LIFE TECHNOLOGIES, INC.
PRO FORMA CONSOLIDATED STATEMENT OF INCOME
(Unaudited)
(in thousands, except share and per share data)
                         
            Pro Forma        
For the fiscal year ended October 31, 2007   As Reported     Adjustments     Pro Forma  
 
Net revenue
   $ 67,874     $ (30,183 ) (6)   $ 37,691  
Cost of revenue
     36,586       (23,065 ) (6)     13,521  
 
                  
Gross margin
     31,288       (7,118 )     24,170  
 
                        
Operating expenses:
                        
Selling, general and administrative
     24,252       (4,970 ) (6)     19,282  
Research and development
     3,753       (1,133 ) (6)     2,620  
 
                  
Operating expenses
     28,005       (6,103 )     21,902  
 
                        
Operating income
     3,283       (1,015 )     2,268  
Interest income
     2,092       —       2,092  
 
                  
 
                        
Income before provision for income taxes
     5,375       (1,015 )     4,360  
Provision for income taxes
     1,565       (389 )     1,176  
 
                  
 
                        
Net income from continuing operations
   $ 3,810     $ (626 )   $ 3,184  
Net income from discontinued operations
   $ —     $ 626     $ 626  
 
                  
Net income
   $ 3,810     $ —     $ 3,810  
 
                  
 
                        
Basic earnings per share
                        
- Continuing Operations
   $ 0.31             $ 0.26  
- Discontinued Operations
     —               0.05  
 
                    
Total
   $ 0.31             $ 0.31  
 
                    
 
                        
Diluted earnings per share
                        
- Continuing Operations
   $ 0.30             $ 0.25  
- Discontinued Operations
     —               0.05  
 
                    
Total
   $ 0.30             $ 0.30  
 
                    
 
                        
Weighted average common shares outstanding
                        
- Basic
     12,225               12,225  
- Diluted
     12,528               12,528  

 

 

SYNOVIS LIFE TECHNOLOGIES, INC.
PRO FORMA CONSOLIDATED STATEMENT OF OPERATIONS
(Unaudited)
(in thousands, except share and per share data)
                         
            Pro Forma        
For the fiscal year ended October 31, 2006   As Reported     Adjustments     Pro Forma  
 
Net revenue
   $ 55,835     $ (28,092 ) (6)   $ 27,743  
Cost of revenue
     34,187       (22,679 ) (6)     11,508  
 
                  
Gross margin
     21,648       (5,413 )     16,235  
 
                        
Operating expenses:
                        
Selling, general and administrative
     22,444       (4,918 ) (6)     17,526  
Research and development
     3,383       (1,248 ) (6)     2,135  
 
                  
Operating expenses
     25,827       (6,166 )     19,661  
 
                        
Operating income (loss)
     (4,179 )     753       (3,426 )
Interest income
     1,337       —       1,337  
 
                  
 
                        
Income (loss) before provision for (benefit from) income taxes
     (2,842 )     753       (2,089 )
Provision for (benefit from) income taxes
     (1,361 )     288       (1,073 )
 
                  
 
                        
Net income (loss) from continuing operations
   $ (1,481 )   $ 465     $ (1,016 )
Net income (loss) from discontinued operations
   $ —     $ (465 )   $ (465 )
 
                  
Net income (loss)
   $ (1,481 )   $ —     $ (1,481 )
 
                  
 
                        
Basic earnings (loss) per share
                        
- Continuing Operations
   $ (0.12 )           $ (0.08 )
- Discontinued Operations
     —               (0.04 )
 
                    
Total
   $ (0.12 )           $ (0.12 )
 
                    
 
                        
Diluted earnings (loss) per share
                        
- Continuing Operations
   $ (0.12 )           $ (0.08 )
- Discontinued Operations
     —               (0.04 )
 
                    
Total
   $ (0.12 )           $ (0.12 )
 
                    
 
                        
Weighted average common shares outstanding
                        
- Basic
     12,004               12,004  
- Diluted
     12,004               12,004  

 

 

SYNOVIS LIFE TECHNOLOGIES, INC.
PRO FORMA CONSOLIDATED STATEMENT OF INCOME
(Unaudited)
(in thousands, except share and per share data)
                         
            Pro Forma        
For the fiscal year ended October 31, 2005   As Reported     Adjustments     Pro Forma  
 
Net revenue
   $ 60,256     $ (35,263 ) (6)   $ 24,993  
Cost of revenue
     38,436       (27,320 ) (6)     11,116  
 
                  
Gross margin
     21,820       (7,943 )     13,877  
 
                        
Operating expenses:
                        
Selling, general and administrative
     17,810       (5,098 ) (6)     12,712  
Research and development
     3,839       (1,249 ) (6)     2,590  
Other
     135       —       135  
 
                  
Operating expenses
     21,784       (6,347 )     15,437  
 
                        
Operating income (loss)
     36       (1,596 )     (1,560 )
Interest income
     893       —       893  
 
                  
 
                        
Income (loss) before provision for (benefit from) income taxes
     929       (1,596 )     (667 )
Provision for (benefit from) income taxes
     46       (611 )     (565 )
 
                  
 
                        
Net income (loss) from continuing operations
   $ 883     $ (985 )   $ (102 )
Net income (loss) from discontinued operations
   $ —     $ 985     $ 985  
 
                  
Net income (loss)
   $ 883     $ —     $ 883  
 
                  
 
                        
Basic earnings (loss) per share
                        
- Continuing Operations
   $ 0.07             $ (0.01 )
- Discontinued Operations
     —               0.08  
 
                    
Total
   $ 0.07             $ 0.07  
 
                    
 
                        
Diluted earnings (loss) per share
                        
- Continuing Operations
   $ 0.07             $ (0.01 )
- Discontinued Operations
     —               0.08  
 
                    
Total
   $ 0.07             $ 0.07  
 
                    
 
                        
Weighted average common shares outstanding
                        
- Basic
     11,793               11,793  
- Diluted
     11,998               11,998  

 

 

SYNOVIS LIFE TECHNOLOGIES, INC.
NOTES TO PRO FORMA FINANCIAL INFORMATION
(Unaudited)
(in thousands)
 
(1)   Pro forma adjustments reflect total cash proceeds of $30,575 based on a closing date of October 31, 2007. The cash total reflects a sales price of $29,500 plus a working capital adjustment of $1,075. Of the amount, $27,625 is classified as current cash available for use, with the remaining $2,950 classified as non-current, as it is placed in escrow for a period of eighteen months following the close date.
 
(2)   Pro forma adjustments reflect the removal of the assets and liabilities of the interventional business.
 
(3)   Pro forma adjustments reflect the income tax effect of the gain of the sale and the reversal of deferred tax balances related to the interventional business.
 
(4)   Pro forma adjustment reflects the estimated transaction costs of the sale.
 
(5)   Pro forma adjustment reflects the pretax gain on the sale of the interventional business.
 
(6)   Pro forma adjustments reflect elimination of the results of operations of the interventional business.