SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
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FORM 8-K/A
AMENDMENT NO. 1
TO
CURRENT REPORT
PURSUANT TO SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934
Date of report (Date of earliest event reported) July 5, 2000
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INTELLIGROUP, INC.
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(Exact Name of Registrant as Specified in Charter)
New Jersey 0-20943 11-2880025
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(State or Other Jurisdiction (Commission File Number) (IRS Employer
of Incorporation) Identification No.)
499 Thornall Street
Edison, New Jersey 08837
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(Address of Principal Executive Offices) (Zip Code)
Registrant's telephone number, including area code (732) 590-1600
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(Former Name or Former Address, if Changed Since Last Report)
<PAGE>
ITEM 7. FINANCIAL STATEMENTS, PRO FORMA FINANCIAL INFORMATION AND EXHIBITS.
As reported in the Current Report on Form 8-K dated July 17, 2000 filed by
Intelligroup, Inc. (the "Company"), on July 5, 2000, the Company distributed all
of the outstanding shares of the common stock of its subsidiary, SeraNova, Inc.
held by the Company to holders of record of the Company's common stock as of the
close of business on May 12, 2000 (or to their subsequent transferees).
The Company hereby files this Amendment No. 1 on Form 8-K/A to file the
financial statements, related pro forma financial statements and exhibits
required pursuant to Item 7 of Form 8-K with respect to such transaction.
(b) Pro Forma Financial Information.
------------------------------------
The following unaudited pro forma consolidated financial statements are
filed with this report:
(1) Pro Forma Consolidated Balance Sheet as of June 30, 2000 (unaudited)
(2) Pro Forma Consolidated Statement of Operations for the Six Months
Ended June 30, 2000 (unaudited)
(3) Pro Forma Consolidated Statement of Operations for the Year Ended
December 31, 1999 (unaudited)
(4) Notes to Pro Forma Consolidated Financial Information (unaudited)
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<PAGE>
INTELLIGROUP, INC. AND SUBSIDIARIES
INTRODUCTION TO PRO FORMA FINANCIAL INFORMATION
For the Six Months Ended June 30, 2000
(unaudited)
The Pro Forma Consolidated Balance Sheet of Intelligroup, Inc. (the
"Company") as of June 30, 2000 reflects the financial position of the Company
assuming the distribution of all of the outstanding shares of the common
stock of its subsidiary, SeraNova, Inc., as of June 30, 2000.
The Pro Forma Consolidated Statements of Operations for the six months
ended June 30, 2000 and for the fiscal year ended December 31, 1999 give effect
to the distribution as if such distribution occurred as of January 1, 1999.
The Pro Forma Financial Information should be read in conjunction with the
Company's historical financial statements and related notes included in its 1999
Annual Report on Form 10-K and Quarterly Report on Form 10-Q for the quarter
ended June 30, 2000. The Pro Forma Financial Information presented is for
informational purposes only and is not intended to be indicative of the results
of operations that would have occurred had the distribution been consummated as
of January 1, 1999, nor is it intended to be indicative of future results of
operations or financial position.
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<PAGE>
<TABLE>
<CAPTION>
INTELLIGROUP, INC. AND SUBSIDIARIES
PRO FORMA CONSOLIDATED BALANCE SHEETS
As of June 30, 2000
(unaudited)
Pro Forma
Assets Historical Adjustments(a) Pro Forma
------------ -------------- ------------
Current Assets:
<S> <C> <C> <C>
Cash and cash equivalents .......................... $ 1,799,000 $ -- $ 1,799,000
Accounts receivable, less allowance for
doubtful accounts of $3,022,000 ................. 18,749,000 -- 18,749,000
Unbilled services .................................. 6,162,000 -- 6,162,000
Income tax receivable .............................. 2,533,000 -- 2,533,000
Deferred tax asset ................................. 2,481,000 -- 2,481,000
Other current assets ............................... 4,617,000 -- 4,617,000
Note receivable - SeraNova ......................... 3,000,000 -- 3,000,000
Net current assets of discontinued operations ...... (1,036,000) --
------------ ------------ ------------
1,036,000
Total current assets .......................... 40,377,000 (1,036,000) 39,341,000
Note receivable - SeraNova ............................ 12,059,000 -- 12,059,000
Property and equipment, net ........................... 8,076,000 -- 8,076,000
Capitalized software solutions, net ................... 2,376,000 -- 2,376,000
Intangible assets, net ................................ 4,960,000 -- 4,960,000
Deferred tax asset .................................... 1,049,000 -- 1,049,000
Other assets .......................................... 1,092,000 -- 1,092,000
Net non-current assets of discontinued operations ..... 9,668,000 (9,668,000) --
------------ ------------ ------------
$ 79,657,000 $(10,704,000) $ 68,953,000
============ ============ ============
Liabilities and Shareholders' Equity
Current Liabilities:
Accounts payable ................................... $ 2,858,000 $ -- $ 2,858,000
Accrued payroll and related taxes .................. 9,152,000 -- 9,152,000
Accrued expenses and other liabilities ............. 7,456,000 -- 7,456,000
Income taxes payable ............................... 600,000 -- 600,000
Current portion of long-term debt and
obligations ........................................... 5,261,000 -- 5,261,000
------------ ------------ ------------
under capital leases
Total current liabilities ..................... 25,327,000 -- 25,327,000
Commitments and contingencies
Shareholders' Equity:
Preferred stock, $.01 par value, 5,000,000
shares authorized, none issued or outstanding ... -- -- --
Common stock, $.01 par value, 25,000,000 shares
authorized; 16,630,000 shares issued and
outstanding ..................................... 166,000 -- 166,000
Additional paid-in capital ......................... 59,092,000 (17,733,000) 41,359,000
Retained earnings (deficit) ........................ (3,615,000) 7,137,000 3,522,000
Currency translation adjustments ................... (1,313,000) (108,000) (1,421,000)
------------ ------------ ------------
Total shareholders' equity ...................... 54,330,000 (10,704,000) 43,626,000
------------ ------------ ------------
$ 79,657,000 $(10,704,000) $ 68,953,000
============ ============ ============
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</TABLE>
<PAGE>
(a) To eliminate the assets, liabilities and shareholders' equity of SeraNova,
Inc. assuming the distribution of all of the outstanding shares of the common
stock of SeraNova, Inc., as of June 30, 2000.
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<PAGE>
<TABLE>
<CAPTION>
INTELLIGROUP, INC. AND SUBSIDIARIES
PRO FORMA CONSOLIDATED STATEMENTS OF OPERATIONS
For the Six Months Ended June 30, 2000
(unaudited)
Pro Forma
Historical Adjustments(b) Pro Forma
------------ --------------- ------------
<S> <C> <C> <C>
Revenue ............................................... $ 56,740,000 $ -- $ 56,740,000
Cost of sales ......................................... 37,674,000 -- 37,674,000
------------ ------------- ------------
Gross profit .................................... 19,066,000 -- 19,066,000
------------ ------------- ------------
Selling, general and administrative expenses .......... 24,140,000 -- 24,140,000
Depreciation and amortization ......................... 1,570,000 -- 1,570,000
------------ ------------- ------------
Total operating expenses ........................ 25,710,000 -- 25,710,000
------------ ------------- ------------
Operating loss .................................. (6,644,000) -- (6,644,000)
Other income, net ..................................... 24,000 -- 24,000
Interest income, net .................................. 160,000 -- 160,000
------------ ------------- ------------
Loss from continuing operations before income
tax benefit ..................................... (6,460,000) -- (6,460,000)
Income tax benefit .................................... (1,461,000) -- (1,461,000)
------------ ------------- ------------
Loss from continuing operations ....................... (4,999,000) -- (4,999,000)
Loss from discontinued operations,
net of tax benefit ............................... (4,891,000) 4,891,000 --
------------ ------------- ------------
Net loss .............................................. $ (9,890,000) $ 4,891,000 $ (4,999,000)
============ ============= ============
Earnings per share:
Basic earnings per share:
Loss from continuing operations ... $ (0.31) $ -- $ (0.31)
Discontinued operations ........... (0.30) 0.30
------------- ------------ ------------
Net loss per share ........................... $ (0.61) $ 0.30 $ (0.31)
============ ============= ============
Weighted average number of
common shares - basic .......................... 16,360,000 16,360,000 16,360,000
============ ============= ============
Diluted earnings per share:
Loss from continuing operations ... $ (0.31) $ -- $ (0.31)
Discontinued operations ........... (0.30) 0.30
------------- ------------ ------------
------------
Net loss per share ........................... $ (0.61) $ 0.30 $ (0.31)
============ ============= ============
Weighted average number of
common shares - diluted ........................ 16,360,000 16,360,000 16,360,000
============ ============= ============
</TABLE>
(b) To eliminate the net loss of SeraNova, Inc. for the six months ended June
30, 2000 assuming the distribution of all of the outstanding shares of the
common stock of SeraNova, Inc., as of January 1, 1999.
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<PAGE>
<TABLE>
<CAPTION>
INTELLIGROUP, INC. AND SUBSIDIARIES
PRO FORMA CONSOLIDATED STATEMENTS OF OPERATIONS
For the Year Ended December 31, 1999
(unaudited)
Pro Forma
Historical Adjustments(c) Pro Forma
------------- --------------- -------------
<S> <C> <C> <C>
Revenue .............................................. $ 186,067,000 $ (39,795,000) $ 146,272,000
Cost of sales ........................................ 119,857,000 (22,475,000) 97,382,000
------------- ------------- -------------
Gross profit .................................... 66,210,000 (17,320,000) 48,890,000
------------- ------------- -------------
Selling, general and administrative expenses ......... 56,206,000 (16,854,000) 39,352,000
Depreciation and amortization ........................ 4,601,000 (1,131,000) 3,470,000
Acquisition expenses ................................. 2,115,000 -- 2,115,000
Spin-off costs ....................................... 751,000 (751,000) --
Restructuring and other special charges .............. 7,328,000 -- 7,328,000
------------- ------------- -------------
Total operating expenses ....................... 71,001,000 (18,736,000) 52,265,000
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Operating loss ................................. (4,791,000) 1,416,000 (3,375,000)
Interest expense, net ................................ 593,000 (80,000) 513,000
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Loss from operations before income tax benefit ....... (5,384,000) 1,496,000 (3,888,000)
Income tax expense ................................... 1,206,000 235,000 1,441,000
------------- ------------- -------------
Net loss ............................................. $ (6,590,000) $ 1,261,000 $ (5,329,000)
============= ============= =============
Earnings per share:
Basic earnings per share:
Net loss per share ............................... $ (0.42) $ 0.08 $ (0.34)
============= ============= =============
Weighted average number of common shares - basic . 15,766,000 15,766,000 15,766,000
============= ============= =============
Diluted earnings per share:
Net loss per share ............................... $ (0.42) $ 0.08 $ (0.34)
============= ============= =============
Weighted average number of common shares - diluted 15,766,000 15,766,000 15,766,000
============= ============= =============
</TABLE>
(c) To eliminate the results of operations of SeraNova, Inc. for the year ended
December 31, 1999, assuming the distribution of all of the outstanding shares of
the common stock of SeraNova, Inc., as of January 1, 1999.
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<PAGE>
INTELLIGROUP, INC. AND SUBSIDIARIES
NOTES TO PRO FORMA FINANCIAL INFORMATION
(unaudited)
BASIS OF PRESENTATION
On July 5, 2000, Intelligroup, Inc., (the "Company") distributed all of
the outstanding shares of the common stock of its subsidiary, SeraNova, Inc.
("SeraNova") held by the Company to holders of record of the Company's common
stock as of the close of business on May 12, 2000 (or to their subsequent
transferees) in accordance with the terms of a Distribution Agreement dated as
of January 1, 2000 between the Company and SeraNova.
The accompanying Pro Forma Consolidated Balance Sheet has been prepared by
applying certain pro forma adjustments to historical financial information,
assuming the distribution occurred on June 30, 2000. The Pro Forma Consolidated
Statements of Operations for the six months ended June 30, 2000 and for the year
ended December 31, 1999 have been prepared based upon certain pro forma
adjustments to historical financial information, assuming the distribution
occurred as of January 1, 1999.
The pro forma data is not necessarily indicative of the operating results
or financial position that would have occurred had the transaction described
above been consummated at the date indicated, nor necessarily indicative of
future operating results or financial position.
Basic net income (loss) per share of common stock is calculated by
dividing net income (loss) applicable to common stock by the weighted average
number of common shares outstanding during the period. Diluted net income (loss)
per share reflects the potential dilution that would occur if securities or
other contracts to issue common stock were exercised or converted into common
stock, unless they are antidilutive.
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<PAGE>
(c) Exhibits.
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Exhibit No. Description of Exhibit
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10.1 Distribution Agreement dated as of January 1, 2000 between
Intelligroup, Inc. and SeraNova, Inc. (Incorporated by
reference to the Company's Annual Report on Form 10-K for the
year ended December 31, 1999).
10.2 Contribution Agreement dated as of January 1, 2000 between
Intelligroup, Inc. and SeraNova, Inc. (Incorporated by
reference to the Company's Annual Report on Form 10-K for the
year ended December 31, 1999).
10.3 Tax Sharing Agreement dated as of January 1, 2000 between
Intelligroup, Inc. and SeraNova, Inc. (Incorporated by
reference to the Company's Annual Report on Form 10-K for the
year ended December 31, 1999).
10.4 Services Agreement dated as of January 1, 2000 between
Intelligroup, Inc. and SeraNova, Inc. (Incorporated by
reference to the Company's Annual Report on Form 10-K for the
year ended December 31, 1999).
10.5 Space Sharing Agreement dated as of January 1, 2000 between
Intelligroup, Inc. and SeraNova, Inc. (Incorporated by
reference to the Company's Annual Report on Form 10-K for the
year ended December 31, 1999).
10.6 Amendment No. 1 to Services Agreement by and between
Intelligroup, Inc. and SeraNova, Inc.
10.7 Amended and Restated Promissory Note by and between
Intelligroup, Inc. and SeraNova, Inc.
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<PAGE>
SIGNATURE
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.
INTELLIGROUP, INC.
By: /s/ Askok Pandey
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Name: Ashok Pandey
Title: Co-Chief Executive Officer
September 14, 2000
