SECURITIES AND EXCHANGE COMMISSION
FORM 8-K
CURRENT REPORT
PURSUANT TO SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934
August 24, 2001
(Date of report)
August 21, 2001
(Date of earliest event reported)
INTUIT INC.
| Delaware | 000-21180 | 77-0034661 | ||
| (State or other Jurisdiction of Incorporation) |
(Commission File Number) | (I.R.S. Employer Identification No.) |
2535 Garcia Avenue
Mountain View, CA 94043
(Address of Principal Executive Offices)
(Zip Code)
Registrant’s telephone number, including area code: (650) 944-6000
| ITEM 5. OTHER EVENTS. | ||||||||
| CONDENSED CONSOLIDATED STATEMENT OF OPERATIONS | ||||||||
| CONDENSED CONSOLIDATED BALANCE SHEET | ||||||||
| SIGNATURES | ||||||||
ITEM 5. OTHER EVENTS.
Press Release Announcing Fourth Quarter and Fiscal Year 2001 Results
Fiscal 2001 Results
On August 21, 2001, Intuit announced its financial results for the fourth quarter and fiscal quarter ended July 31, 2001. Intuit reported fiscal 2001 revenue of $1.26 billion, an increase of 15 percent over fiscal 2000 revenue of $1.09 billion. Revenue growth was driven by strong performance in three of Intuit’s businesses — Quicken Loans, payroll and consumer tax. Intuit reported a net loss for the year of $82.8 million, or a loss of $0.40 per share, compared to net income of $305.7 million, or $1.45 per share, in fiscal 2000. Year-over-year comparisons are complicated due to significant non-operating events that impacted fiscal 2000 and 2001 differently. Fiscal 2000 results benefited from a net $481.1 million pre-tax gain (or $1.37 in after-tax earnings per share) relating to marketable securities and other investments, which did not occur this year. In fiscal 2001, Intuit’s results were impacted by the following significant pre-tax charges totaling approximately $187.3 million (or $0.69 in after-tax earnings per share): $98.1 million in combined write-downs and losses related to marketable securities and other investments; and $89.2 million more in acquisition-related costs in fiscal 2001 compared to fiscal 2000, due primarily to the accelerated write-down of goodwill for prior acquisitions.
Fourth-Quarter Results
Intuit reported revenue of $191.2 million for the fourth quarter of fiscal 2001, an increase of 18 percent over the $162.3 million for the year-ago quarter. Growth was driven by very strong results from two of Intuit’s businesses — Quicken Loans and payroll. Intuit reported a net loss for the quarter of $61.3 million, or a loss of $0.29 per share. Intuit typically reports a loss in its fourth quarter when revenue from tax preparation businesses is minimal, but operating expenses to develop new products and services continue at relatively consistent levels. In the year-ago quarter, Intuit reported net income of $17.1 million, or $0.08 per share. Similar to annual results, quarterly comparisons are complicated due to a significant non-operating event. In fiscal 2000, fourth-quarter results benefited from a net $79 million pre-tax gain (or $0.22 in after-tax earnings per share) relating to marketable securities and other investments, which did not occur this year.
(Financial statements follow)
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INTUIT INC.
CONDENSED CONSOLIDATED STATEMENT OF OPERATIONS
(In thousands, except per share data)
(Unaudited)
| Quarter Ended | Year Ended | ||||||||||||||||
| July 31, | July 31, | ||||||||||||||||
| 2000 | 2001 | 2000 | 2001 | ||||||||||||||
Net revenue |
$ | 162,259 | $ | 191,169 | $ | 1,093,825 | $ | 1,261,461 | |||||||||
Costs and expenses: |
|||||||||||||||||
Cost of revenue |
|||||||||||||||||
Products and services |
57,347 | 63,814 | 282,385 | 312,040 | |||||||||||||
Amortization of purchased software and other |
1,762 | 3,729 | 8,798 | 14,949 | |||||||||||||
Customer service and technical support |
25,996 | 33,285 | 139,550 | 149,353 | |||||||||||||
Selling and marketing |
48,179 | 55,070 | 264,367 | 270,216 | |||||||||||||
Research and development |
42,554 | 51,911 | 169,083 | 207,085 | |||||||||||||
General and administrative |
18,899 | 25,304 | 83,745 | 102,918 | |||||||||||||
Charge for purchased research and development |
— | — | 1,312 | 238 | |||||||||||||
Acquisition related costs |
36,238 | 42,874 | 157,948 | 248,202 | |||||||||||||
Reorganization costs |
— | — | 3,500 | — | |||||||||||||
Total costs and expenses |
230,975 | 275,987 | 1,110,688 | 1,305,001 | |||||||||||||
Loss from operations |
(68,716 | ) | (84,818 | ) | (16,863 | ) | (43,540 | ) | |||||||||
Interest and other income and expense, net |
18,462 | 12,630 | 48,443 | 60,366 | |||||||||||||
Gain (loss) on marketable securities and other
investments, net |
79,034 | (10,746 | ) | 481,130 | (98,053 | ) | |||||||||||
Net loss on divestiture of businesses |
— | (16,954 | ) | — | (15,315 | ) | |||||||||||
Income (loss) before income tax, minority interest and
cumulative effect of accounting change |
28,780 | (99,888 | ) | 512,710 | (96,542 | ) | |||||||||||
Income tax provision (benefit) |
11,567 | (38,795 | ) | 207,184 | (229 | ) | |||||||||||
Minority interest |
68 | 196 | (135 | ) | 794 | ||||||||||||
Income (loss) before cumulative effect of accounting change |
17,145 | (61,289 | ) | 305,661 | (97,107 | ) | |||||||||||
Cumulative effect of accounting change, net of taxes of
$9,543 |
— | — | — | 14,314 | |||||||||||||
Net income (loss) |
$ | 17,145 | $ | (61,289 | ) | $ | 305,661 | $ | (82,793 | ) | |||||||
Basic net income (loss) per share before
cumulative effect of accounting change |
$ | 0.08 | $ | (0.29 | ) | $ | 1.52 | $ | (0.47 | ) | |||||||
Cumulative effect of accounting change |
— | — | — | 0.07 | |||||||||||||
Basic net income (loss) per share |
$ | 0.08 | $ | (0.29 | ) | $ | 1.52 | $ | (0.40 | ) | |||||||
Shares used in per share amounts |
203,721 | 209,800 | 200,770 | 207,959 | |||||||||||||
Diluted net income (loss) per share before
cumulative effect of accounting change |
$ | 0.08 | $ | (0.29 | ) | $ | 1.45 | $ | (0.47 | ) | |||||||
Cumulative effect of accounting change |
— | — | — | 0.07 | |||||||||||||
Diluted net income (loss) per share |
$ | 0.08 | $ | (0.29 | ) | $ | 1.45 | $ | (0.40 | ) | |||||||
Shares used in per share amounts |
211,940 | 209,800 | 211,271 | 207,959 | |||||||||||||
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INTUIT INC.
CONDENSED CONSOLIDATED BALANCE SHEET
(In thousands)
(Unaudited)
| July 31, | July 31, | ||||||||||
| 2000 | 2001 | ||||||||||
| ASSETS | |||||||||||
Current assets: |
|||||||||||
Cash and cash equivalents |
$ | 416,953 | $ | 450,104 | |||||||
Short-term investments |
1,050,220 | 1,119,305 | |||||||||
Marketable securities |
225,878 | 85,307 | |||||||||
Customer deposits |
181,678 | 230,410 | |||||||||
Accounts receivable, net |
67,420 | 27,990 | |||||||||
Mortgage loans |
60,330 | 123,241 | |||||||||
Deferred income taxes |
41,843 | 77,948 | |||||||||
Prepaid expenses and other current assets |
30,538 | 33,617 | |||||||||
Total current assets |
2,074,860 | 2,147,922 | |||||||||
Property and equipment, net |
167,707 | 185,969 | |||||||||
Goodwill, net |
358,890 | 326,986 | |||||||||
Purchased intangibles, net |
79,988 | 88,348 | |||||||||
Long-term deferred income taxes |
92,985 | 145,905 | |||||||||
Investments |
31,160 | 24,107 | |||||||||
Loans due from affiliates |
6,464 | 9,502 | |||||||||
Other assets |
12,914 | 32,997 | |||||||||
Total assets |
$ | 2,824,968 | $ | 2,961,736 | |||||||
| LIABILITIES AND STOCKHOLDERS’ EQUITY | |||||||||||
Current liabilities: |
|||||||||||
Accounts payable |
$ | 79,145 | $ | 66,400 | |||||||
Accrued compensation and related liabilities |
49,303 | 64,325 | |||||||||
Payroll service obligations |
177,002 | 205,067 | |||||||||
Escrow liabilities |
8,479 | 23,373 | |||||||||
Drafts payable |
23,598 | 63,518 | |||||||||
Deferred revenue |
107,578 | 125,018 | |||||||||
Income tax payable |
110,743 | 82,661 | |||||||||
Short-term note payable |
34,286 | 38,672 | |||||||||
Other current liabilities |
162,769 | 118,928 | |||||||||
Total current liabilities |
752,903 | 787,962 | |||||||||
Long-term obligations |
538 | 12,413 | |||||||||
Minority interest |
238 | 35 | |||||||||
Stockholders’ equity |
2,071,289 | 2,161,326 | |||||||||
Total liabilities and stockholders’ equity |
$ | 2,824,968 | $ | 2,961,736 | |||||||
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SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
| Date: August 23, 2001 | INTUIT INC. | |
| By: | /s/ Greg J. Santora | |
| Greg J. Santora Senior Vice President and Chief Financial Officer |
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