<PAGE>
- -----------------------------------------------------------------------------
- -----------------------------------------------------------------------------
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, DC 20549
FORM 8-K/A
CURRENT REPORT PURSUANT TO SECTION 13 OR 15(d) OF
THE SECURITIES EXCHANGE ACT OF 1934
JUNE 30, 1998
----------------------------------------
Date of Report (Date of earliest event reported)
ACCESS HEALTH, INC.
- -----------------------------------------------------------------------------
(Exact name of Registrant as specified in its charter)
------------------------- ---------------------- -------------------
DELAWARE 0-19758 68-0163589
(State or other jurisdiction (Commission File Number) (I.R.S. Employer
of incorporation) Identification No.)
335 INTERLOCKEN PARKWAY
BROOMFIELD, CO 80021
----------------------------------------
(Address of principal executive offices)
(303) 466-9500
----------------------------------------------------
(Registrant's telephone number, including area code)
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<PAGE>
This amendment to the Current Report on Form 8-K filed by the Registrant
with the Securities and Exchange Commission on July 10, 1998, is being filed
to amend Item 7(b) thereto as set forth below. The undersigned Registrant
hereby amends the following item of this Current Report on Form 8-K,
originally filed with the Securities and Exchange Commission on July 10,
1998, as set forth on the page attached hereto.
ITEM 7. FINANCIAL STATEMENTS AND EXHIBITS.
a. Financial Statements of Business Acquired.
The financial statements of InterQual, Inc. required to be filed
pursuant to Item 7(a) of Form 8-K are included as Exhibit 20.1 of this
Current Report on Form 8-K.
b. Pro Forma Financial Information.
The pro forma financial information required to be filed pursuant
to Item 7(b) of this Current Report on Form 8-K are included as Exhibit 20.2
of this Current Report on Form 8-K.
c. Exhibits.
The following exhibits are filed in accordance with Item 601 of
Regulation S-K as part of this report:
2.1 Amended and Restated Agreement and Plan of Reorganization dated
as of June 4, 1998, entered into by and among Access Health,
Inc., a Delaware corporation, InterQual, Inc., a Delaware
corporation, and Access Acquisition Corp. 98A, a Delaware
corporation (incorporated by reference to Annex A to the
Prospectus contained in the Company's Registration Statement on
Form S-4 (File No. 333-56253)).
20.1 Financial Statements of InterQual, Inc., including balance sheets
of InterQual, Inc. as of December 31, 1996 and 1997 and the
statements of operations, changes in stockholders' equity
(deficit), and cash flows for the years ended December 31, 1995,
1996 and 1997 (incorporated by reference to the Financial
Statements of InterQual, Inc. included in the Prospectus
contained in the Company's Registration Statement on Form S-4
(File No. 333-56253)).
20.2 Pro Forma Condensed Combined Financial Statements of Access
Health, Inc. and InterQual, Inc., including unaudited condensed
combined statements of operations for the years ended September
30, 1995, 1996 and 1997 and the six months ended March 31, 1997
and 1998 and unaudited condensed combined balance sheet as of
March 31, 1998.
<PAGE>
23.1 Consent of Alexander, Aronson, Finning & Co., P.C. *
* Previously filed as Exhibit to the Registrant's Current Report on Form 8-K
filed with the Securities and Exchange Commission on July 10, 1998.
-2-
<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.
ACCESS HEALTH, INC.
Dated: September 14, 1998 By: /s/ JULIE A. BROOKS
-----------------------------------
Name: Julie A. Brooks
Title: Senior Vice President and
General Counsel
-3-
<PAGE>
EXHIBIT INDEX
<TABLE>
<CAPTION>
Exhibit Description Page
Number
<S> <C> <C>
2.1 Amended and Restated Agreement and Plan of Reorganization
dated as of June 4, 1998, entered into by and among Access
Health, Inc., a Delaware corporation, InterQual, Inc., a
Delaware corporation, and Access Acquisition Corp. 98A, a
Delaware corporation (incorporated by reference to Annex A to
the Prospectus contained in Access Health's Registration
Statement on Form S-4 (File No. 333-56253)).
20.1 Financial Statements of InterQual, Inc., including balance
sheets of InterQual, Inc. as of December 31, 1996 and 1997
and the statements of operations, changes in stockholders'
equity (deficit), and cash flows for the years ended December
31, 1995, 1996 and 1997 (incorporated by reference to the
Financial Statements of InterQual, Inc. included in the
Prospectus contained in the Company's Registration Statement
on Form S-4(File No. 333-56253)).
20.2 Pro Forma Condensed Combined Financial Statements of Access
Health, Inc. and InterQual, Inc., including unaudited
condensed combined statements of operations for the years
ended September 30, 1995, 1996 and 1997 and the six months
ended March 31, 1997 and 1998 and unaudited condensed
combined balance sheet as of March 31, 1998.
23.1 Consent of Alexander, Aronson, Finning & Co., P.C. *
</TABLE>
* Previously filed as Exhibit to the Registrant's Current Report on Form 8-K
filed with the Securities and Exchange Commission on July 10, 1998.
-4-
<PAGE>
EXHIBIT 20.2
PRO FORMA CONDENSED COMBINED FINANCIAL STATEMENTS
(UNAUDITED)
The following unaudited pro forma condensed combined financial
statements, including the notes thereto, are qualified in their entirety by
reference to and should be read in conjunction with, the historical
consolidated financial statements of Access Health and InterQual, including
the notes thereto, incorporated by reference to the Company's Registration
Statement on Form S-4 (File No. 333-56253).
The unaudited pro forma condensed financial statements assume a business
combination between Access Health and InterQual accounted for on a
pooling-of-interests basis and are based on each company's respective
historical consolidated financial statements and notes thereto, which are
included or incorporated by reference herein. The unaudited pro forma
condensed combined balance sheet combines Access Health's unaudited
consolidated condensed balance sheet as of March 31, 1998 with InterQual's
unaudited condensed balance sheet as of March 31, 1998, giving effect to the
Merger as if it had occurred on March 31, 1998. The unaudited pro forma
combined condensed statements of operations combine Access Health's
historical results for the years ended September 30, 1995, 1996 and 1997 and
the six months ended March 31, 1997 and 1998 with InterQual's historical
results for the years ended December 31, 1995, 1996 and 1997 and the six
months ended June 30, 1997 and March 31, 1998, respectively, giving effect to
the Merger as if it had occurred at the beginning of the earliest period
presented.
The pro forma information is presented for illustrative purposes only and is
not necessarily indicative of the operating results or financial position that
would have occurred if the Merger had been consummated at the beginning of the
earliest period presented, or at March 31, 1998, as appropriate, nor is it
necessarily indicative of future operating results or financial position.
1
<PAGE>
ACCESS HEALTH, INC. AND INTERQUAL, INC.
UNAUDITED PRO FORMA CONDENSED COMBINED STATEMENTS OF OPERATIONS
YEARS ENDED SEPTEMBER 30, 1995, 1996 AND 1997
(IN THOUSANDS, EXCEPT SHARE DATA)
<TABLE>
<CAPTION>
ACCESS HEALTH, INC. INTERQUAL, INC. PRO FORMA COMBINED
---------------------------------- ------------------------- ----------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
1995 1996 1997 1995 1996 1997 1995 1996 1997
---------- ---------- ---------- ------- ------- ------- ---------- ---------- ----------
Revenues:
Care management services.. $ 26,484 $ 61,178 $ 93,729 $ -- $ -- $ -- $ 26,484 $ 61,178 $ 93,729
Licensing and support
services................ 9,526 10,925 10,598 6,755 10,733 16,315 16,281 21,658 26,913
---------- ---------- ---------- ------- ------- ------- ---------- ---------- ----------
Total revenues........ 36,010 72,103 104,327 6,755 10,733 16,315 42,765 82,836 120,642
---------- ---------- ---------- ------- ------- ------- ---------- ---------- ----------
Costs and expenses:
Cost of revenues:
Care management
services.............. 19,374 34,653 49,237 -- -- -- 19,374 34,653 49,237
Licensing and support
services.............. 4,961 5,349 3,244 3,595 3,281 4,635 8,556 8,630 7,879
Product and other
development........... 3,298 6,545 7,922 674 1,805 3,310 3,972 8,350 11,232
Sales and marketing..... 5,487 9,468 8,907 947 1,940 2,777 6,434 11,408 11,684
General and
administrative........ 4,540 10,391 8,614 2,427 3,506 4,885 6,967 13,897 13,499
Transaction costs....... -- -- 6,345 -- -- -- -- -- 6,345
Integration and
restructuring costs... -- -- 9,661 -- -- -- -- -- 9,661
---------- ---------- ---------- ------- ------- ------- ---------- ---------- ----------
Total costs and
expense............. 37,660 66,406 93,930 7,643 10,532 15,607 45,303 76,938 109,537
---------- ---------- ---------- ------- ------- ------- ---------- ---------- ----------
Income (loss) from
operations................ (1,650) 5,697 10,397 (888) 201 708 (2,538) 5,898 11,105
Non-operating income
(expenses):
Impairment loss on
interest in AHN......... -- -- (10,000) -- -- -- -- -- (10,000)
Interest and other
income.................. 877 1,633 2,182 34 -- -- 911 1,633 2,182
Interest expense.......... (150) (186) (324) (38) (39) (33) (188) (225) (357)
---------- ---------- ---------- ------- ------- ------- ---------- ---------- ----------
Income (loss) before income
taxes..................... (923) 7,144 2,255 (892) 162 675 (1,815) 7,306 2,930
Provision (credit) for
income taxes.............. (242) 6,050 (2,363) (396) 60 313 (638) 6,110 (2,050)
---------- ---------- ---------- ------- -------- ------- ---------- ---------- ----------
Net income (loss)........... $ (681) $ 1,094 $ 4,618 $ (496) $ 102 $ 362 $ (1,177) $ 1,196 $ 4,980
---------- ---------- ---------- ------- ------- ------- ---------- ---------- ----------
---------- ---------- ---------- ------- ------- ------- ---------- ---------- ----------
Pro forma net income (loss)
per share:
Basic..................... $ (0.06) $ 0.08 $ 0.26 $(49.57) $ 10.17 $ 36.17 $ (0.08) $ 0.07 $ 0.23
---------- ---------- ---------- ------- ------- ------- ---------- ---------- ----------
---------- ---------- ---------- ------- ------- ------- ---------- ---------- ----------
Diluted................... $ (0.06) $ 0.06 $ 0.24 $(49.57) $ 9.31 $ 30.39 $ (0.08) $ 0.05 $ 0.21
---------- ---------- ---------- ------- ------- ------- ---------- ---------- ----------
---------- ---------- ---------- ------- ------- ------- ---------- ---------- ----------
Shares used in per share
calculation:
Basic..................... 11,000,000 12,884,000 17,854,000 10,000 10,000 10,000 14,814,000 16,698,000 21,668,000
Diluted................... 11,000,000 18,502,000 19,360,000 10,000 10,930 11,902 14,814,000 22,667,000 23,892,000
</TABLE>
See accompanying notes to unaudited pro forma
condensed combined financial statements.
2
<PAGE>
ACCESS HEALTH, INC. AND INTERQUAL, INC.
UNAUDITED PRO FORMA CONDENSED COMBINED STATEMENTS OF OPERATIONS
SIX MONTHS ENDED MARCH 31, 1997 AND 1998
(IN THOUSANDS, EXCEPT SHARE DATA)
<TABLE>
<CAPTION>
ACCESS HEALTH, INC. INTERQUAL, INC. PRO FORMA COMBINED
-------------------------- -------------------- --------------------------
<S> <C> <C> <C> <C> <C> <C>
1997 1998 1997 1998 1997 1998
------------ ------------ --------- --------- ------------ ------------
Revenues:
Care management services................... $ 44,417 $ 54,432 $ -- $ -- $ 44,417 $ 54,432
Licensing and support services............. 5,325 5,833 7,311 10,356 12,636 16,189
------------ ------------ --------- --------- ------------ ------------
Total revenues......................... 49,742 60,265 7,311 10,356 57,053 70,621
Costs and expenses:
Costs of revenues:
Care management services................. 22,582 29,886 -- -- 22,582 29,886
Licensing and support services........... 2,029 1,359 2,074 2,667 4,103 4,026
Product and other development.............. 4,397 3,173 1,418 2,256 5,815 5,429
Sales and marketing........................ 4,246 4,659 1,312 1,758 5,558 6,417
General and administrative................. 4,558 4,823 2,114 3,205 6,672 8,028
Transaction costs.......................... 6,345 -- -- -- 6,345 --
Integration and restructuring costs........ 6,961 -- -- -- 6,961 --
------------ ------------ --------- --------- ------------ ------------
Total costs and expenses............... 51,118 43,900 6,918 9,886 58,036 53,786
------------ ------------ --------- --------- ------------ ------------
Income (loss) from operations................ (1,376) 16,365 393 470 (983) 16,835
Other income (expense)....................... 715 1,677 (15) (17) 700 1,660
------------ ------------ --------- --------- ------------ ------------
Income (loss) before income taxes............ (661) 18,042 378 453 (283) 18,495
Provision (credit) for income taxes.......... (132) 6,856 176 208 44 7,064
------------ ------------ --------- --------- ------------ ------------
Net income (loss)............................ $ (529) $ 11,186 $ 202 $ 245 $ (327) $ 11,431
------------ ------------ --------- --------- ------------ ------------
------------ ------------ --------- --------- ------------ ------------
Pro forma net income (loss) per share:
Basic...................................... $ (0.03) $ 0.60 $ 20.20 $ 24.50 $ (0.02) $ 0.51
------------ ------------ --------- --------- ------------ ------------
------------ ------------ --------- --------- ------------ ------------
Diluted.................................... $ (0.03) $ 0.56 $ 17.03 $ 20.55 $ (0.02) $ 0.46
------------ ------------ --------- --------- ------------ ------------
------------ ------------ --------- --------- ------------ ------------
Shares used in per share calculation:
Basic...................................... 17,719,000 18,556,000 10,000 10,000 21,533,000 22,370,000
Diluted.................................... 17,719,000 20,128,000 11,860 11,922 21,533,000 24,668,000
</TABLE>
See accompanying notes to unaudited pro forma
condensed combined financial statements.
3
<PAGE>
ACCESS HEALTH, INC. AND INTERQUAL, INC.
UNAUDITED PRO FORMA CONDENSED COMBINED BALANCE SHEET
MARCH 31, 1998
(IN THOUSANDS)
<TABLE>
<CAPTION>
ACCESS
HEALTH, INTERQUAL, PRO FORMA PRO FORMA
INC. INC ADJUSTMENT COMBINED
---------- ----------- ----------- -----------
<S> <C> <C> <C> <C>
ASSETS
Current Assets:
Cash equivalents.............................................. $ 43,820 $ 1,665 -- $ 45,485
Available-for-sale securities................................. 31,936 -- -- 31,936
Accounts and license fees receivable.......................... 14,289 5,314 -- 19,603
Deferred income taxes......................................... 5,012 4,544 -- 9,556
Prepaid expenses, income taxes receivable and other current
assets...................................................... 8,668 1,124 -- 9,792
---------- ----------- ----------- -----------
Total current assets...................................... 103,725 12,647 -- 116,372
Property and equipment, net..................................... 16,046 1,806 -- 17,852
Purchased intangibles........................................... 2,642 -- -- 2,642
Deferred income taxes........................................... 1,042 -- -- 1,042
Other assets.................................................... 427 204 -- 631
---------- ----------- ----------- -----------
Total assets.............................................. $ 123,882 $ 14,657 -- $ 138,539
---------- ----------- ----------- -----------
---------- ----------- ----------- -----------
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable.............................................. 2,979 1,086 -- 4,065
Accrued payroll and related expenses.......................... 4,716 1,446 -- 6,162
Accrued integration and restructuring costs................... 1,912 -- -- 1,912
Taxes and other accrued expenses.............................. 9,877 11 -- 9,888
Accrued merger related expenses............................... -- -- 9,000 9,000
Other current liabilities..................................... 693 28 -- 721
Deferred revenue.............................................. 5,748 11,646 -- 17,394
---------- ----------- ----------- -----------
Total current liabilities................................. 25,925 14,217 9,000 49,142
Capital lease obligations and other long-term debt.............. 312 68 -- 380
Stockholders' equity (deficit):
Common stock.................................................. 86,947 133 -- 87,080
Retained earnings............................................. 10,698 239 (9,000) 1,937
---------- ----------- ----------- -----------
Total stockholders' equity................................ 97,645 372 (9,000) 89,017
---------- ----------- ----------- -----------
Total liabilities and stockholders' equity................ $ 123,882 $ 14,657 -- $ 138,539
---------- ----------- ----------- -----------
---------- ----------- ----------- -----------
</TABLE>
See accompanying notes to unaudited pro forma
condensed combined financial statements.
4
<PAGE>
ACCESS HEALTH, INC. AND INTERQUAL, INC.
NOTES TO UNAUDITED PRO FORMA CONDENSED COMBINED
FINANCIAL STATEMENTS
NOTE 1. BASIS OF PRESENTATION
The unaudited pro forma condensed combined statements of operations combine
the historical statements of operations of Access Health for the years ended
September 30, 1995, 1996 and 1997 and the six months ended March 31, 1997 and
1998, with the historical statements of operations of InterQual for the years
ended December 31, 1995, 1996 and 1997, and the six months ended June 30, 1997
and March 31, 1998.
No adjustments have been made in these pro forma financial statements to
conform the accounting policies of the combining companies. The nature and
extent of such adjustments, if any, are not expected to be significant.
NOTE 2. PRO FORMA NET INCOME (LOSS) PER SHARE
The number of shares of Access Health Common Stock issued in exchange for
the outstanding shares of InterQual Capital Stock is based on the final
exchange ratio. The final exchange ratio of 381.42 and 377.61 for the
InterQual Class A Common Stock and for the InterQual Class B Common Stock
respectively, was used in preparing the pro forma combined financial data.
The following table provides the pro forma number of shares issued in
connection with the Merger:
<TABLE>
<S> <C>
InterQual Class A Common Stock outstanding as of March 31, 1998................. 10,000
Related exchange ratio...................................................... 381.42
----------
Number of Access Health Common Stock exchanged for InterQual Class A Common
Stock.......................................................................... 3,814,235
----------
InterQual Class B Common Stock outstanding as of March 31, 1998 ................ 1,922
Related exchange ratio...................................................... 377.61
----------
Number of Access Health Common Stock exchanged for InterQual Class B Common
Stock.......................................................................... 725,765
----------
Total Access Health Common Stock exchanged................................. 4,540,000
Total number of Access Health common shares outstanding as of March 31, 1998.... 18,815,879
----------
Number of Access Health common shares outstanding after completion of the
Merger......................................................................... 23,355,879
----------
----------
</TABLE>
Access Health and InterQual each adopted Statement of Financial Accounting
Standards No. 128 "Earnings per Share" ("SFAS 128"), which was required to be
adopted on December 15, 1997. This statement establishes standards for computing
and presenting basic and diluted earnings per share. Under this statement, basic
earnings or loss per share is computed by dividing the net earnings or loss by
the weighted average number of shares of common stock outstanding. Diluted
earnings or loss per share is determined by dividing the net earnings or loss by
the sum of (1) the weighted average number of common shares outstanding, (2) if
not anti-dilutive, the number of shares of convertible preferred stock as if
converted upon issuance, and (3) if not anti-dilutive, the effect of outstanding
stock options determined utilizing the treasury stock method.
5
<PAGE>
ACCESS HEALTH, INC. AND INTERQUAL, INC.
NOTES TO UNAUDITED PRO FORMA CONDENSED COMBINED
FINANCIAL STATEMENTS (CONTINUED)
NOTE 2. PRO FORMA NET INCOME (LOSS) PER SHARE (CONTINUED)
A reconciliation of the numerators and the denominators of the basic and
diluted per share computations for income for the years ended September 30,
1995, 1996 and 1997 and the six months ended March 31, 1997 and 1998 are as
follows:
<TABLE>
<CAPTION>
FOR THE YEAR ENDED SEPTEMBER 30, 1995
-------------------------------------
PER SHARE
INCOME (LOSS) SHARES AMOUNT
------------- ---------- ---------
<S> <C> <C> <C>
Net income (loss).............................................. (1,177,000)
Basic Earnings per Share
Income available to common stockholders...................... (1,177,000) 14,814,000 $(0.08)
---------
---------
Options issued to directors and employees.................... --
Convertible preferred stock.................................. --
----------
Diluted Earnings per Share
Income available to common stockholders...................... (1,177,000) 14,814,000 $(0.08)
---------
---------
</TABLE>
Options to purchase approximately 1.9 million shares of Access Health's
common stock, and convertible preferred stock that were convertible into
approximately 3.7 million shares of Access Health's common stock were
outstanding as of September 30, 1995 but were not included in the computation of
diluted earnings per share because they were anti-dilutive.
<TABLE>
<CAPTION>
FOR THE YEAR ENDED SEPTEMBER 30, 1996
-------------------------------------
PER SHARE
INCOME SHARES AMOUNT
------------- ---------- ---------
<S> <C> <C> <C>
Net income..................................................... 1,196,000
Basic Earnings per Share
Income available to common stockholders...................... 1,196,000 16,698,000 $ 0.07
---------
---------
Options issued to directors and employees.................... 2,276,000
Convertible preferred stock.................................. 3,693,000
----------
Diluted Earnings per Share
Income available to common stockholders...................... 1,196,000 22,667,000 $ 0.05
---------
---------
</TABLE>
<TABLE>
<CAPTION>
FOR THE YEAR ENDED SEPTEMBER 30, 1997
-------------------------------------
PER SHARE
INCOME SHARES AMOUNT
------------- ---------- ---------
<S> <C> <C> <C>
Net income..................................................... 4,980,000
Basic Earnings per Share
Income available to common stockholders...................... 4,980,000 21,668,000 $ 0.23
---------
---------
Options issued to directors and employees.................... 2,224,000
----------
Diluted Earnings per Share
Income available to common stockholders...................... 4,980,000 23,892,000 $ 0.21
---------
---------
</TABLE>
6
<PAGE>
ACCESS HEALTH, INC. AND INTERQUAL, INC.
NOTES TO UNAUDITED PRO FORMA CONDENSED COMBINED
FINANCIAL STATEMENTS (CONTINUED)
NOTE 2. PRO FORMA NET INCOME (LOSS) PER SHARE (CONTINUED)
<TABLE>
<CAPTION>
FOR THE SIX MONTHS ENDED
MARCH 31, 1997
-------------------------------------
PER SHARE
INCOME (LOSS) SHARES AMOUNT
------------- ---------- ---------
<S> <C> <C> <C>
Net income (loss).............................................. (327,000)
Basic Earnings per Share
Income available to common stockholders...................... (327,000) 21,533,000 $(0.02)
---------
---------
Options issued to directors and employees.................... --
----------
Diluted Earnings per Share
Income available to common stockholders...................... (327,000) 21,533,000 $(0.02)
---------
---------
</TABLE>
Options to purchase approximately 3.9 million shares of Access Health's
common stock were outstanding as of December 31, 1996 but were not included in
the computation of diluted earnings per share because they were anti-dilutive.
<TABLE>
<CAPTION>
FOR THE SIX MONTHS ENDED
MARCH 31, 1998
-------------------------------------
PER SHARE
INCOME SHARES AMOUNT
------------- ---------- ---------
<S> <C> <C> <C>
Net income..................................................... 11,431,000
Basic Earnings per Share
Income available to common stockholders...................... 11,431,000 22,370,000 $ 0.51
---------
---------
Options issued to directors and employees.................... 2,298,000
----------
Diluted Earnings per Share
Income available to common stockholders...................... 11,431,000 24,668,000 $ 0.46
---------
---------
</TABLE>
The pro forma combined net income (loss) per share is based on the combined
weighted average number of common (basic) and dilutive common equivalent shares
(diluted) of Access Health and InterQual and the final common stock exchange
ratio as of March 31, 1998 which results in the issuance of 4,540,000 shares of
Access Health Common Stock for all of the outstanding shares of InterQual
Capital Stock.
The pro forma condensed combined statements of operations of Access
Health for the fiscal years ended September 30, 1995, 1996 and 1997 include
the operations of InterQual for the calendar years ended December 31, 1995,
1996 and 1997. The pro forma condensed combined statement of operations of
Access Health for the six months ended March 31, 1997 and 1998 include the
operations of InterQual for the six months ended June 30, 1997 and March 31,
1998, respectively. Accordingly, the Company's retained earnings have been
adjusted for the effect of utilizing differing fiscal year ends for these
periods. The revenues and net income of InterQual for the three months ended
December 31, 1997 were $5,024,000 and $32,000, respectively.
Share and per share information applicable to prior periods for Access
Health and InterQual have been restated to reflect stock splits as discussed in
each entity's respective financial statements and notes thereto.
NOTE 3. PRO FORMA ADJUSTMENTS
Access Health and InterQual have estimated that they will incur
merger-related expenses of approximately $9 million, consisting primarily of
transaction costs for financial advisory fees, attorneys, accountants and
financial printing and other one-time charges related to the transaction.
These nonrecurring expenses will be charged to operations as incurred.
The pro forma condensed combined balance sheet gives effect to such expenses
as if they had been incurred as of March 31, 1998; however, in accordance with
Regulation S-X the pro forma condensed combined statements of operations do not
give effect to such expenses.
7
