<PAGE>
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 10-Q
(Mark One)
X Quarterly Report Pursuant to Section 13 or 15(d) of The Securities
---- Exchange Act of 1934.
For the quarterly period ended March 31, 1996
Transition report pursuant to Section 13 or 15(d) of the
- ----- Securities Exchange Act of 1934.
Commission file number 0-11428
INFORMATION RESOURCES, INC.
-----------------------------------------
(Exact name of registrant as specified in its charter)
Delaware 36-2947987
------------------------------- -------------------
(State or other jurisdiction of (I.R.S. Employer
incorporation or organization) Identification No.)
150 North Clinton Street, Chicago, Illinois 60661
------------------------------------------- -----------------------
(Address of principal executive offices) (Zip Code)
Registrant's telephone number, including area code (312) 726-1221
--------------
Securities registered pursuant to Section 12(g) of the Act:
Title of each class
-------------------
Common, $.01 par value per share
Preferred Stock Purchase Rights
Indicate by check mark whether the registrant (1) has filed all reports required
to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during
the preceding 12 months (or for such shorter period that the registrant was
required to file such reports), and (2) has been subject to such filing
requirements for the past 90 days. Yes X No
--- ---
The number of shares of the registrant's common stock, $.01 par value per share
outstanding, as of April 30, 1996 was 27,753,272.
<PAGE>
INFORMATION RESOURCES, INC. and Subsidiaries
INDEX
-----
<TABLE>
<CAPTION>
PAGE
NUMBER
------
PART I. FINANCIAL INFORMATION
- -------------------------------
<S> <C>
Condensed Consolidated Balance Sheets 3
Condensed Consolidated Statements of Operations 4
Condensed Consolidated Statements of Cash Flows 5
Notes to Condensed Consolidated Financial Statements 6
Management's Discussion and Analysis of
Financial Condition and Results
of Operations 9
PART II. OTHER INFORMATION
- ---------------------------
Item 6 - Exhibits and Reports on Form 8-K 14
Signatures 15
</TABLE>
2
<PAGE>
INFORMATION RESOURCES, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
(IN THOUSANDS)
<TABLE>
<CAPTION>
ASSETS MARCH 31, 1996 DECEMBER 31, 1995
- ------ -------------- -----------------
(UNAUDITED)
<S> <C> <C>
CURRENT ASSETS
Cash and cash equivalents $ 8,598 $ 24,884
Accounts receivable, net 101,471 95,862
Escrow receivable 8,000 8,000
Prepaid expenses and other 5,524 5,169
-------- --------
Total Current Assets 123,593 133,915
-------- --------
Property and equipment, at cost 141,048 136,946
Accumulated depreciation and amortization (79,493) (76,541)
-------- --------
Net property and equipment 61,555 60,405
Investments 18,863 18,791
Other assets 129,160 125,425
-------- --------
$333,171 $338,536
======== ========
LIABILITIES AND STOCKHOLDERS' EQUITY
- ------------------------------------
CURRENT LIABILITIES
Current maturities of capitalized leases $ 2,265 $ 2,317
Accounts payable 42,372 36,214
Accrued compensation and benefits 14,037 19,812
Accrued property, payroll and other taxes 3,024 3,981
Accrued expenses 6,375 11,571
Deferred revenue 20,653 15,599
-------- --------
Total Current Liabilities 88,726 89,494
-------- --------
Long-term debt 3,614 3,760
Deferred income taxes, net 5,352 8,643
Deferred gain 3,943 4,047
Other liabilities 2,613 2,838
STOCKHOLDERS' EQUITY
Preferred stock-authorized, 1,000,000 shares
$.01 par value - none issued -- --
Common stock - authorized 60,000,000 shares,
$.01 par value; 27,744,269 and
27,587,176 shares issued and
outstanding, respectively 277 276
Capital in excess of par value 185,918 183,615
Retained earnings 43,581 45,828
Cumulative translation adjustment (853) 35
-------- --------
Total Stockholders' Equity 228,923 229,754
-------- --------
$333,171 $338,536
======== ========
</TABLE>
The accompanying notes are an integral part of these statements.
3
<PAGE>
INFORMATION RESOURCES, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
UNAUDITED
(IN THOUSANDS, EXCEPT PER SHARE DATA)
<TABLE>
<CAPTION>
THREE MONTHS ENDED
---------------------
MARCH 31
---------------------
1996 1995
--------- ---------
<S> <C> <C>
Revenues:
U.S. and International Services $ 92,998 $ 86,952
Software products business sold to Oracle -- 17,843
--------- ---------
92,998 104,795
Costs and expenses:
Information services (89,094) (80,200)
Software products business sold to Oracle -- (17,951)
Selling, general and administrative expenses (8,378) (11,624)
--------- ---------
(97,472) (109,775)
--------- ---------
Operating loss (4,474) (4,980)
Interest expense and other, net (181) (954)
Equity in loss of affiliated companies (85) (49)
--------- ---------
Loss before income taxes and minority interests (4,740) (5,983)
Income tax benefit 2,263 2,692
--------- ---------
Loss before minority interests (2,477) (3,291)
Minority interests 230 --
--------- ---------
Net loss $ (2,247) $ (3,291)
========= =========
Net loss per common and common equivalent share $ (.08) $ (.12)
========= =========
Weighted average common and common equivalent shares 27,653 26,615
========= =========
</TABLE>
The accompanying notes are an integral part of these statements.
4
<PAGE>
INFORMATION RESOURCES, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
UNAUDITED
(IN THOUSANDS)
<TABLE>
<CAPTION>
THREE MONTHS ENDED MARCH 31
---------------------------
1996 1995
--------- ---------
<S> <C> <C>
CASH FLOWS FROM OPERATING ACTIVITIES:
Net loss: $ (2,247) $ (3,291)
Adjustments to reconcile net loss to net cash provided by
operating activities:
Amortization of deferred data procurement costs 20,503 19,799
Depreciation 4,570 5,092
Amortization of capitalized software costs 749 2,128
Amortization of intangibles 690 1,411
Deferred income tax provision (2,263) (2,798)
Equity in loss of affiliated companies and minority interests (145) 49
Provision for losses on accounts receivable -- 458
Other 48 2,462
Change in assets and liabilities:
Increase in accounts receivable (5,626) (15,285)
Increase in other current assets (355) (5,211)
Decrease in accounts payable and accrued liabilities (5,395) (3,494)
Increase in deferred revenue 4,207 4,610
Other, net (1,590) (926)
--------- ---------
Total adjustments 15,393 8,295
--------- ---------
Net cash provided by operating activities 13,146 5,004
CASH FLOWS FROM INVESTING ACTIVITIES:
Deferred data procurement costs (23,091) (23,108)
Purchase of property and equipment (5,840) (5,253)
Capitalized software costs (1,719) (2,575)
Investments relating to joint ventures -- (4,812)
--------- ---------
Net cash used in investing activities (30,650) (35,748)
CASH FLOWS FROM FINANCING ACTIVITIES:
Bank borrowings -- 29,000
Net borrowings (repayments) of capitalized leases (198) 454
Proceeds from exercise of stock options 1,579 548
--------- ---------
Net cash provided by financing activities 1,381 30,002
EFFECT OF EXCHANGE RATE CHANGES ON CASH (163) 735
--------- ---------
Net decrease in cash and cash equivalents (16,286) (7)
Cash and cash equivalents at beginning of period 24,884 11,792
--------- ---------
Cash and cash equivalents at end of period $ 8,598 $ 11,785
========= =========
</TABLE>
The accompanying notes are an integral part of these statements.
5
<PAGE>
INFORMATION RESOURCES, INC. AND SUBSIDIARIES
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(UNAUDITED)
NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
- ---------------------------------------------------
Basis of presentation: The accompanying condensed consolidated financial
statements should be read in conjunction with the consolidated financial
statements included in Information Resources, Inc.'s Annual Report on Form 10-K
for the year ended December 31, 1995. The condensed consolidated financial
information furnished herein reflects all adjustments (consisting of normal
recurring accruals) which are, in the opinion of management, necessary for a
fair presentation of the condensed consolidated financial statements for the
periods shown.
Principles of consolidation: The condensed consolidated financial statements
include the accounts of Information Resources, Inc. and its subsidiaries
(collectively "the Company") after elimination of intercompany transactions.
Reclassifications: Certain amounts in the 1995 condensed consolidated
financial statements have been reclassified to conform to the 1996
presentation.
Adoption of Statement of Financial Accounting Standards: On January 1, 1996,
the Company adopted the Statement of Financial Accounting Standards, No. 121
"Accounting for the Impairment of Long-Lived Assets and for Long-Lived Assets
to Be Disposed Of". The adoption of this Standard did not have a material
impact on the Company's consolidated financial statements.
NOTE 2 - SUPPLEMENTAL CASH FLOW INFORMATION
- -------------------------------------------
Cash paid (refunded) for interest and income taxes during the period was as
follows (in thousands):
<TABLE>
<CAPTION>
THREE MONTHS ENDED MARCH 31
1996 1995
----- ------
<S> <C> <C>
Interest $ 438 $1,154
Income taxes 427 (284)
</TABLE>
In March 1995, Information Resources, Inc. ("IRI") and Middle East Market
Research Bureau ("MEMRB") International entered into a strategic alliance
agreement. In connection with this agreement, IRI issued common stock having a
market value of approximately $2.6 million to the stockholders of MEMRB and
obtained an option to acquire up to a 49% ownership interest in MEMRB.
NOTE 3 - ACCOUNTS RECEIVABLE
- ----------------------------
Accounts receivable were as follows (in thousands):
<TABLE>
<CAPTION>
MARCH 31, DECEMBER 31,
1996 1995
--------- ------------
<S> <C> <C>
Billed $ 59,160 $62,580
Unbilled 42,291 34,903
Other 3,867 2,239
-------- -------
105,318 99,722
Reserve for accounts receivable (3,847) (3,860)
-------- -------
$101,471 $95,862
======== =======
</TABLE>
6
<PAGE>
INFORMATION RESOURCES, INC. AND SUBSIDIARIES
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS, CONT'D.
(UNAUDITED)
NOTE 4 - OTHER ASSETS
- ---------------------
Other assets were as follows (in thousands):
<TABLE>
<CAPTION>
MARCH 31, DECEMBER 31,
1996 1995
--------- ------------
<S> <C> <C>
Deferred data procurement costs -
net of accumulated amortization of
of $96,782 in 1996 and $92,912 in 1995 $102,170 $ 98,602
Intangible assets, including goodwill
primarily related to acquisitions -
net of accumulated amortization of
$10,261 in 1996 and $14,026 in 1995 12,719 13,395
Capitalized software costs - net of
accumulated amortization of $4,397
in 1996 and $3,648 in 1995 10,827 9,857
Other 3,444 3,571
-------- --------
$129,160 $125,425
======== ========
</TABLE>
NOTE 5 - ACCRUED EXPENSES
- -------------------------
In 1995, the Company decided to transition its Towne-Oller service from the use
of warehouse withdrawal data to InfoScan scanner data and close down its New
York operation. Amounts charged against the $2.9 million reserve established in
1995 for facility operating leases and severance aggregated $.5 million for the
quarter ended March 31, 1996.
7
<PAGE>
INFORMATION RESOURCES, INC. AND SUBSIDIARIES
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS, CONT'D.
(UNAUDITED)
NOTE 6 - LONG-TERM DEBT
- -----------------------
In November 1995, the Company replaced its $65.0 million bank credit facility
maturing in 1997 with a new $50.0 million facility maturing in 1998, with fixed
or floating interest rate options at or below prime. Facility fees of .15% are
payable on the bank credit facility, and there are no commitment fees. The
credit facility contains financial covenants which restrict the Company's
ability to incur additional indebtedness or liens on its assets. The financial
covenants also require the Company to meet tangible net worth levels, cash flow
coverage amounts, leverage limitations and quick ratio minimums.
Certain of the Company's loan and lease agreements include various financial
covenants which require that the Company maintain a minimum tangible net worth,
as defined, and otherwise limit IRI's ability to declare dividends or make
distributions to holders of capital stock, or redeem or otherwise acquire shares
of the Company. Approximately $.5 million is available for such distributions
under the most restrictive of these covenants.
8
<PAGE>
INFORMATION RESOURCES, INC. AND SUBSIDIARIES
MANAGEMENT'S DISCUSSION AND ANALYSIS
OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS
OVERVIEW OF OPERATIONS
Over the periods presented, the Company has generated increased revenues
resulting from the continued growth of its U.S. services business and the
startup and significant expansion of its International services business. The
U.S. revenue gains for the period ended March 31, 1996 were achieved in spite of
an intensely competitive pricing environment that began in late 1993 and
continued through 1995. Due to the longer-term nature of most InfoScan
contracts, pricing changes have a delayed effect on the results of operations as
reported in the Company's condensed consolidated financial statements. This
lagged effect is especially apparent in the Company's U.S. operations because
only a portion of all InfoScan contracts come up for renewal in any particular
year. The development of the Company's International services business, while
generating substantial revenue growth in spite of continuing intense price
competition, has resulted in significant operating losses which will likely
continue until these operations achieve a substantially higher level of
revenues.
In July 1995, the Company completed the sale to Oracle Corporation ("Oracle") of
certain assets, liabilities and software products relating to its on-line
analytical processing (OLAP)business, the software products business, previously
operated by the Company's software division. Since this business was not a
separate business segment, prior period's consolidated financial statements have
not been restated.
Ongoing business revenues in the first quarter of 1996 increased over the same
period in 1995, though the Company incurred a consolidated loss in both periods.
A number of factors influenced results in the first quarter of 1996, including:
(a) the effects of price competition on past U.S. InfoScan renewals; (b) the
continued competitive environment in Europe and costs relating to the
development of the Company's International services business; (c) costs related
to building the Company's InfoScan Census data base and its Omega re-engineering
initiatives; (d) increased client deliverables associated with past InfoScan
contract renewals; (e) increased software development costs; and (f) the sale of
the Company's software products business to Oracle.
Based upon discussions with financial analysts and in part due to the July 1995
sale of the software products business to Oracle, the Company considers the
aggregation of operating profit (loss), equity earnings (losses) and minority
interests ("Operating Results") to be a meaningful and readily comparable
measure of the Company's relative performance. A comparative analysis of
consolidated revenues and Operating Results for the quarters ended March 31,
1996 and 1995 follows (in thousands):
9
<PAGE>
INFORMATION RESOURCES, INC. AND SUBSIDIARIES
MANAGEMENT'S DISCUSSION AND ANALYSIS
OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS, CONT'D.
<TABLE>
<CAPTION>
THREE MONTHS ENDED MARCH 31
1996 1995
------------- --------------
<S> <C> <C>
Revenues
U.S. Services $79,961 $ 77,937
International Services 13,037 9,015
------- --------
Subtotal 92,998 86,952
Software products business sold to Oracle -- 17,843
------- --------
$92,998 $104,795
======= ========
Operating Results
U.S. Services
Operating profit $ 4,286 $ 6,816
Equity in loss of affiliated companies -- (200)
------- --------
Subtotal - U.S. 4,286 6,616
International Services
Operating loss (8,345) (7,805)
Equity in earnings (loss) of affiliated companies (85) 151
Minority interests 230 --
------- --------
Subtotal - International (8,200) (7,654)
Corporate and other expenses (415) (1,262)
Software products business sold to Oracle operating loss -- (2,729)
------- --------
Operating Results $(4,329) $ (5,029)
======= ========
</TABLE>
In the first quarter of 1996, revenue from the Company's U.S. services
business increased 3% over the same quarter in 1995 as InfoScan revenue
increases were partially offset by the effect of the previously announced close-
down of the Company's Towne-Oller service in late 1995. Aggregate InfoScan
revenues increased 7% compared to the first quarter of 1995. This increase in
InfoScan revenues was primarily the result of revenue growth from existing
clients, while InfoScan Census revenues continued their steep climb from a low
base. U.S. Operating Results in the first quarter of 1996 were $2.3 million or
35% lower than the same period in 1995. This decrease was due to a 6% increase
in costs, related principally to the development of the Company's Census
initiatives and higher client servicing and software application development
costs.
International services revenues for the quarter ended March 31, 1996
increased 45% to $13.0 million due to an increase in the number of InfoScan
clients and expanded usage among existing clients, particularly in France and
Italy. International's Operating Results were an ($8.2) million loss for the
quarter ended March 31, 1996 compared to a ($7.7) million loss for the same
quarter of 1995 which has been restated to include direct overhead. The current
quarter's loss from International operations continues to reflect startup
costs in Italy and a very difficult competitive environment in Europe.
10
<PAGE>
INFORMATION RESOURCES, INC. AND SUBSIDIARIES
MANAGEMENT'S DISCUSSION AND ANALYSIS
OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS, CONT'D.
Consolidated revenues and Operating Results for the quarter ended March 31,
1995 included the revenues and Operating Results of the Company's software
products business subsequently sold to Oracle on July 27, 1995.
RESULTS OF OPERATIONS
As a result of the factors described above, consolidated net loss was
($2.2) million for the quarter ended March 31, 1996 compared to a net loss of
($3.3) million for the same quarter of 1995.
Due to the effect of the sale of the software products business to Oracle
Corporation, consolidated revenues decreased to $93.0 million in the first
quarter of 1996 compared to $104.8 million in the same period in 1995. This was
partially offset by increases in International services revenues and U.S.
InfoScan revenues. Consolidated revenues for the first quarter of 1996 were up
7% after adjusting first quarter 1995 revenues to remove that portion of the
Company's software business that was sold to Oracle in July 1995.
Consolidated costs of information services increased 11% to $89.1 million in
the first quarter of 1996 compared to $80.2 million for the same period in 1995.
The increase in 1996 was primarily due to: (a) a $4.5 million increase in U.S.
services compensation expense resulting primarily from higher headcount required
to service clients and development of software; (b) a $2.2 million increase in
International services compensation expense resulting from the continued
expansion of the International services operations; (c) a $1.1 million increase
in depreciation and computer expenses required to deliver increasing levels of
InfoScan services in Europe and the U.S.; and (d) a $.7 million increase in
amortization of deferred data procurement costs, principally resulting from the
expansion of the information services business in Europe. The increase in
computer operations were required to support the Company's Census product
initiative and its production re-engineering and cost reduction project.
Consolidated results for the quarter ended March 31, 1995 included the
operations of the software products business which was sold to Oracle. This
part of the software business reported costs of software products sold of $18.0
million for the quarter ended March 31, 1995. Consolidated results for March
31, 1995 included a ($2.7) million pre-tax loss from the Company's software
products business sold to Oracle.
Consolidated selling, general and administrative expenses decreased $3.2
million to $8.4 million for the quarter ended March 31, 1996. Excluding that
portion of selling, general and administrative expenses attributable to the
software products business sold to Oracle, consolidated selling, general and
administrative expenses decreased $.6 million or 7% for the first quarter of
1996 compared to the same quarter of 1995. The decrease in selling, general and
administrative expenses was attributable to cost reduction programs and lower
promotional and advertising costs.
Interest and other expenses for the quarters ended March 31, 1996 and
1995 were $.2 million and $1.0 million, respectively. This decrease is
principally due to extensive borrowing requirements in the first half of 1995
needed to fund the expansion of the Company's International services operations
in Europe. These loans were paid off following the transaction with Oracle.
11
<PAGE>
INFORMATION RESOURCES, INC. AND SUBSIDIARIES
MANAGEMENT'S DISCUSSION AND ANALYSIS
OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS, CONT'D.
The Company's effective income tax rate is greater than the Federal
statutory rate due to certain unbenefitted foreign losses, goodwill amortization
and other nondeductible expenses.
LIQUIDITY AND CAPITAL RESOURCES
The Company's cash requirements continue to be extensive, primarily caused
by losses incurred in the expansion of its information services in Europe. The
Company's current cash resources include its $8.6 million consolidated cash
balance, $50.0 million bank line of credit and internally generated funds from
its U.S. operations. The Company anticipates that it will have sufficient funds
from these sources to satisfy its capital needs for the foreseeable future. Bank
line availability is subject to compliance with covenants relating to tangible
net worth levels, cash flow coverage amounts, leverage limitations and quick
ratios.
Certain of the Company's loan and lease agreements include various
financial covenants which require that the Company maintain a minimum tangible
net worth, as defined, and otherwise limit IRI's ability to declare dividends or
make distributions to holders of capital stock, or redeem or otherwise acquire
shares of the Company. Approximately $.5 million is available for such
distributions under the most restrictive of these covenants.
Cash Flow: Consolidated net cash provided by operating activities was $13.1
million for the quarter ended March 31, 1996 compared to $5.0 million for the
same quarter of 1995. Cash provided by operating activities increased primarily
due to a smaller investment in accounts receivable and other working capital in
1996 than in 1995. Consolidated cash used in net investing activities was $30.7
million in 1996 compared to $35.7 million for the same quarter of 1995. The
decrease in consolidated investing activities in 1996 was primarily due to 1995
investments in joint ventures. Net cash used before financing activities was
($17.5) million for the quarter ended March 31, 1996 and ($30.7) million for the
same quarter of 1995 due to higher net cash flows from operating activities and
decreased investments relating to joint ventures. Consolidated cash provided by
net financing activities was $1.4 million for the quarter ended March 31, 1996
compared to $30.0 million for the same period in 1995. The net financing
activities in 1995 reflected $29.0 million of bank borrowings used to fund the
Company's continuing development of its International services business.
Financings: At March 31, 1996, $50.0 million was available under the
Company's bank credit facility for general corporate purposes.
12
<PAGE>
INFORMATION RESOURCES, INC. AND SUBSIDIARIES
MANAGEMENT'S DISCUSSION AND ANALYSIS
OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS, CONT'D.
Other Deferred Costs and Capital Expenditures: Consolidated deferred data
procurement expenditures were $23.1 million for both quarters ended March 31,
1996 and 1995. These expenditures are amortized over a period of 28 months and
include payments to retailers for point-of-sale data and costs related to
collecting, reviewing and verifying other data (i.e., causal factors) which are
an essential part of the InfoScan data base. Deferred data procurement
expenditures for the Company's U.S. services business were $15.2 million and
$15.0 million for the quarters ended March 31, 1996 and 1995, respectively. The
Company's International services business deferred data procurement expenditures
were $7.9 million and $8.1 million for the quarters ended March 31, 1996 and
1995, respectively. Management expects to continue its development of these
businesses in Europe, and accordingly, the Company's European operations will
continue to require substantial investment in data procurement costs. Based upon
currently projected operating results and cash flows, the Company's assessment
is that the realizability of these assets is not impaired. To the extent that
actual operating results and cash flows are lower than these projections, the
Company may be required to write down a portion of these assets.
Consolidated capital expenditures were $5.8 million and $5.3 million for
the quarter ended March 31, 1996 and 1995, respectively. Capital expenditures
for the Company's U.S. services business were $4.9 million and $2.9 million for
the quarters ended March 31, 1996 and 1995, respectively, while related
depreciation expense was $3.9 million and $4.1 million, respectively. The
Company's International services business capital expenditures were $.9 million
and $2.4 million for the quarters ended March 31, 1996 and 1995, respectively,
while related depreciation expense was $.7 million and $1.0 million,
respectively.
Consolidated capitalized software development costs were $1.7 million and
$2.6 million for the quarters ended March 31, 1996 and 1995, respectively. Due
to the sale of the software products business to Oracle, software development
costs declined from historical levels.
NOL Carryforwards: As of December 31, 1995, the Company had cumulative
Federal net operating loss ("NOL") carryforwards of approximately $41.1 million
that expire primarily in 2009 and 2010. In addition, at December 31, 1995,
various foreign subsidiaries of IRI had aggregate cumulative NOL carryforwards
for foreign income tax purposes of approximately $3.9 million which are subject
to various income tax provisions of each respective country. Approximately $2.7
million of these foreign NOL's may be carried forward indefinitely while the
remaining $1.2 million expire in 1999 and 2000. A majority of the European
foreign pre-tax losses are deducted as partnership losses in IRI's consolidated
U.S. income tax return in accordance with the Internal Revenue Code.
13
<PAGE>
INFORMATION RESOURCES, INC. AND SUBSIDIARIES
PART II
OTHER INFORMATION
Item 6. Exhibits and Reports on Form 8-K
a. Exhibits
Exhibit No. Description of Exhibit Page
----------- ---------------------- ----
27 Financial Data Schedule (filed herewith). EF
b. Reports on Form 8-K.
The registrant has not filed any reports on Form 8-K during the quarter for
which this report is filed.
14
<PAGE>
INFORMATION RESOURCES, INC. AND SUBSIDIARIES
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, Registrant's principal financial officer, thereunto duly
authorized.
INFORMATION RESOURCES, INC.
---------------------------
(Registrant)
/s/ Gary M. Hill
----------------------------------------
Gary M. Hill
Executive Vice President
and Chief Financial Officer
(Authorized officer of Registrant and
principal financial officer)
/s/ John P. McNicholas, Jr.
----------------------------------------------
John P. McNicholas, Jr.
Senior Vice President and Controller
(Principal accounting officer)
May 14, 1996
15
<TABLE> <S> <C>
<PAGE>
<ARTICLE> 5
<MULTIPLIER> 1,000
<S> <C>
<PERIOD-TYPE> 3-MOS
<FISCAL-YEAR-END> DEC-31-1995
<PERIOD-END> MAR-31-1996
<CASH> 8,598
<SECURITIES> 0
<RECEIVABLES> 113,318
<ALLOWANCES> (3,847)
<INVENTORY> 0
<CURRENT-ASSETS> 123,593
<PP&E> 141,048
<DEPRECIATION> (79,493)
<TOTAL-ASSETS> 333,171
<CURRENT-LIABILITIES> 88,726
<BONDS> 3,614
<COMMON> 277
0
0
<OTHER-SE> 228,646
<TOTAL-LIABILITY-AND-EQUITY> 333,171
<SALES> 0
<TOTAL-REVENUES> 92,998
<CGS> 0
<TOTAL-COSTS> 89,094
<OTHER-EXPENSES> 0
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 438
<INCOME-PRETAX> (4,740)
<INCOME-TAX> 2,263
<INCOME-CONTINUING> (2,247)
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> (2,247)
<EPS-PRIMARY> (.08)
<EPS-DILUTED> (.08)
</TABLE>
