SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
---------------------
FORM 8-K/A
CURRENT REPORT
PURSUANT TO SECTION 13 OR 15(d) OF THE
SECURITIES AND EXCHANGE ACT OF 1934
Date of Report (Date of earliest event reported): DECEMBER 7, 1999
SPORTSLINE.COM, INC.
(Exact name of registrant as specified in its charter)
DELAWARE
(State or other jurisdiction of incorporation)
0-23337 65-0470894
(Commission File Number) (I.R.S. Employer
Identification No.)
6340 N.W. 5TH WAY
FORT LAUDERDALE, FLORIDA 33309
(Address of principal executive offices) (Zip Code)
(954) 351-2120
(Registrant's telephone number, including area code)
SPORTSLINE USA, INC.
(Former name or former address, if changed since last report)
page 1 of 3
<PAGE>
This current report on Form 8-K/A amends and supplements a current report
on Form 8-K filed by SportsLine.com, Inc., a Delaware corporation (the
"Company"), on December 22, 1999 in connection with the acquisition of Daedalus
World Wide Corporation, a New York corporation ("DWWC"), by the statutory merger
of DWWC with and into a wholly owned subsidiary of the Company.
ITEM 7. FINANCIAL STATEMENTS, PRO FORMA FINANCIAL INFORMATION AND EXHIBITS.
(a) Financial Statements of Business Acquired.
The audited financial statements of DWWC as of, and for the
year ended, December 31, 1998 and the unaudited financial statements of
DWWC as of, and for the nine months ended, September 30, 1999 are
attached hereto as Exhibit 99.2 and are incorporated herein by
reference.
(b) Pro Forma Financial Information.
The unaudited pro forma combined balance sheet of the
Company as of September 30, 1999 and the unaudited pro forma combined
statements of operations for the Company for the year ended
December 31, 1998 and the nine months ended September 30, 1999 are
attached hereto as Exhibit 99.3 and are incorporated herein by
reference.
(c) Exhibits.
2.1 * Agreement and Plan of Merger by and among the Company,
Commissioner.com, Inc., DWWC, James Price, Michael Gersh, Matthew
Fortnow and Peter Pezaris, dated December 6, 1999.(1)
23.1 Consent of Arthur Andersen LLP with respect to the
financial statements of DWWC.
99.1 * Press Release dated December 22, 1999.(1)
99.2 Financial Statements of DWWC listed in Item 7(a)
above.
99.3 Pro Forma Combined Financial Statements of the Company
listed in Item 7(b) above.
* The Company hereby agrees to furnish to the Securities and Exchange
Commission, supplementally, any schedules or exhibits to such agreement
which are not filed herewith, upon the request of the Securities and
Exchange Commission.
(1) Previously filed by the Company in its Current Report on Form 8-K
as filed with the Securities and Exchange Commission on December 22,
1999.
page 2 of 3
<PAGE>
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.
SPORTSLINE.COM, INC.
Date: February 22, 2000 By: /s/ Kenneth W. Sanders
------------------------
Kenneth W. Sanders
Chief Financial Officer
page 3 of 3
<PAGE>
INDEX TO EXHIBITS
Exhibit No. Exhibit Title
- ----------- -------------
23.1 Consent of Arthur Andersen LLP dated as of February 18, 2000.
99.2 Financial Statements of Daedalus World Wide Corporation.
99.3 Pro Forma Combined Financial Statements of SportsLine.com, Inc.
EXHIBIT 23.1
CONSENT OF ARTHUR ANDERSEN LLP
As independent certified public accountants, we hereby consent to the
incorporation by reference of our report dated February 18, 2000 included in
this Form 8-K/A, into SportsLine.com, Inc.'s previously filed registration
statements on Form S-8 (registration nos. 333-46021, 333-46023 and 333-46029)
and registration statements on Form S-3 (registration nos. 333-62685 and
333-78921).
Arthur Andersen LLP
Fort Lauderdale, Florida,
February 18, 2000.
EXHIBIT 99.2
REPORT OF INDEPENDENT CERTIFIED PUBLIC ACCOUNTANTS
To SportsLine.com, Inc.:
We have audited the accompanying balance sheet of Daedalus World Wide
Corporation as of December 31, 1998, and the related statement of operations,
changes in shareholders' deficit and cash flows for the year then ended. These
financial statements are the responsibility of the Company's management. Our
responsibility is to express an opinion on these financial statements based on
our audit.
We conducted our audit in accordance with auditing standards generally accepted
in the United States. Those standards require that we plan and perform the audit
to obtain reasonable assurance about whether the financial statements are free
of material misstatement. An audit includes examining, on a test basis, evidence
supporting the amounts and disclosures in the financial statements. An audit
also includes assessing the accounting principles used and significant estimates
made by management, as well as evaluating the overall financial statement
presentation. We believe that our audit provides a reasonable basis for our
opinion.
In our opinion, the financial statements referred to above present fairly, in
all material respects, the financial position of Daedalus World Wide Corporation
as of December 31, 1998, and the results of its operations and its cash flows
for the year then ended, in conformity with accounting principles generally
accepted in the United States.
Arthur Andersen LLP
Fort Lauderdale, Florida,
February 18, 2000.
F-1
<PAGE>
DAEDALUS WORLD WIDE CORPORATION
BALANCE SHEETS
<TABLE>
<CAPTION>
December 31, 1998 September 30, 1999
----------------- ------------------
(unaudited)
<S> <C> <C>
ASSETS
CURRENT ASSETS:
Cash and cash equivalents ............................................ $ 187,794 $ 80,050
Deposit .............................................................. 11,066 11,066
--------- ---------
Total current assets ............................................. 198,860 91,116
PROPERTY AND EQUIPMENT, net ............................................. 68,799 144,524
--------- ---------
$ 267,659 $ 235,640
========= =========
LIABILITIES AND SHAREHOLDERS' DEFICIT
CURRENT LIABILITIES:
Accounts payable ..................................................... $ 3,359 $ 1,830
Accrued liabilities .................................................. 40,253 30,295
Current portion of note payable ...................................... 25,000 25,000
Deferred revenue ..................................................... 69,946 277,533
--------- ---------
Total current liabilities ....................................... 138,558 334,658
NOTE PAYABLE, net of current portion .................................... 175,000 150,000
--------- ---------
Total liabilities ............................................... 313,558 484,658
--------- ---------
COMMITMENTS AND CONTINGENCIES (Notes 7 and 8)
SHAREHOLDERS' DEFICIT:
Common stock, no par value, 1,000 shares authorized,
360 and 350 issued and outstanding as of
December 31, 1998 and September 30, 1999 (unaudited),respectively -- --
Additional paid-in capital ........................................... 22,400 22,400
Accumulated deficit .................................................. (68,299) (271,418)
--------- ---------
Total shareholders' deficit ...................................... (45,899) (249,018)
--------- ---------
$ 267,659 $ 235,640
========= =========
</TABLE>
The accompanying notes to financial statements are an integral
part of these balance sheets.
F-2
<PAGE>
DAEDALUS WORLD WIDE CORPORATION
STATEMENTS OF OPERATIONS
<TABLE>
<CAPTION>
Year ended Nine Months ended
December 31, 1998 September 30, 1999
----------------- ------------------
(unaudited)
<S> <C> <C>
REVENUE .......................... $ 380,292 $ 320,213
COST OF REVENUE .................. 24,494 23,104
--------- ---------
GROSS MARGIN ..................... 355,798 297,109
--------- ---------
OPERATING EXPENSES:
Sales and marketing ............ 244,568 291,062
General and administrative ..... 129,220 172,095
Depreciation ................... 15,209 27,661
--------- ---------
Total operating expenses 388,997 490,818
LOSS FROM OPERATIONS ............. (33,199) (193,709)
INTEREST EXPENSE ................. (9,883) (11,847)
INTEREST AND OTHER INCOME, net 4,734 3,717
--------- ---------
LOSS BEFORE INCOME TAXES ......... (38,348) (201,839)
INCOME TAX EXPENSE ............... (15,620) (1,280)
--------- ---------
NET LOSS ......................... $ (53,968) $(203,119)
========= =========
</TABLE>
The accompanying notes to financial statements are an integral
part of these statements.
F-3
<PAGE>
DAEDALUS WORLD WIDE CORPORATION
STATEMENTS OF CHANGES IN SHAREHOLDERS' DEFICIT
<TABLE>
<CAPTION>
COMMON STOCK
---------------- ADDITIONAL PAID-IN ACCUMULATED
SHARES AMOUNT CAPITAL DEFICIT TOTAL
------ ------ ------------------ ------------ ---------
<S> <C> <C> <C> <C> <C>
Balance, December 31, 1997 ............ 380 $-- $ 22,400 $ (14,331) $ 8,069
Forfeiture of shares .................. (20) -- -- -- --
Net loss .............................. -- -- -- (53,968) (53,968)
----- --- --------- --------- ---------
Balance, December 31, 1998 ............ 360 $-- $ 22,400 $ (68,299) $ (45,899)
Forfeiture of shares (unaudited) ...... (10) -- -- -- --
Net loss (unaudited) .................. -- -- -- (203,119) (203,119)
----- --- --------- --------- ---------
Balance, September 30, 1999 (unaudited) 350 $-- $ 22,400 $(271,418) $(249,018)
===== === ========= ========= =========
</TABLE>
The accompanying notes to financial statements are an integral
part of these statements.
F-4
<PAGE>
DAEDALUS WORLD WIDE CORPORATION
STATEMENT OF CASH FLOWS
<TABLE>
<CAPTION>
YEAR ENDED
DECEMBER 31, NINE MONTHS ENDED
1998 SEPTEMBER 30, 1999
------------ ------------------
(UNAUDITED)
<S> <C> <C>
CASH FLOWS FROM OPERATING ACTIVITIES:
Net loss ........................................................ $ (53,968) $(203,119)
Adjustments to reconcile net loss to net cash provided by
operating activities:
Depreciation ................................................. 15,209 27,661
Changes in operating assets and liabilities:
Accounts receivable ......................................... 750 --
Deposit ..................................................... (5,766) --
Accounts payable ............................................ (6,963) (1,529)
Accrued liabilities ......................................... 37,684 (9,958)
Deferred revenue ............................................ 69,946 207,587
--------- ---------
Net cash provided by operating activities .................... 56,892 20,642
--------- ---------
CASH FLOWS FROM INVESTING ACTIVITY:
Purchases of property and equipment, net ........................ (71,117) (103,386)
--------- ---------
CASH FLOWS FROM FINANCING ACTIVITIES:
Proceeds from note payable ...................................... 200,000 --
Repayment of note payable ....................................... -- (25,000)
--------- ---------
Net cash provided by (used in) financing activities ......... 200,000 (25,000)
--------- ---------
Net increase (decrease) in cash and
cash equivalents .......................................... 185,775 (107,744)
CASH AND CASH EQUIVALENTS, beginning of period .................... 2,019 187,794
--------- ---------
CASH AND CASH EQUIVALENTS, end of period .......................... $ 187,794 $ 80,050
========= =========
</TABLE>
The accompanying notes to financial statements are an integral
part of these statements.
F-5
<PAGE>
DAEDALUS WORLD WIDE CORPORATION
NOTES TO FINANCIAL STATEMENTS
DECEMBER 31, 1998 AND SEPTEMBER 30, 1999 (UNAUDITED)
(1) NATURE OF OPERATIONS:
Daedalus World Wide Corporation ("DWWC") was incorporated in November 1995.
DWWC's primary activity is developing and hosting interactive computer fantasy
league management tools, fantasy games and sports contests. DWWC has developed
games and products for professional auto racing, baseball, basketball, football,
golf, hockey and soccer. In 1998, DWWC entered into a long-term strategic
relationship with SportsLine.com, Inc. whereby DWWC agreed to produce fantasy
products exclusively for SportsLine.com, Inc.
(2) SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES:
Cash and Cash Equivalents
DWWC considers all highly liquid temporary cash investments with an original
maturity of three months or less to be cash equivalents.
Property and Equipment
Property and equipment is carried at historical cost and is being depreciated
and amortized using the straight-line method over the shorter of the estimated
useful life of the asset or the lease period.
Maintenance and repairs are charged to expense when incurred; betterments are
capitalized. Upon the sale or retirement of assets, the cost and accumulated
depreciation are removed from the account and any gain or loss is recognized.
Revenue Recognition
Revenue recognition policies for fantasy product and website development and
hosting revenue are set forth below:
Fantasy Product Revenue
Fantasy product revenue is derived from the sale of services related to
league management, fantasy games and sports contests. Fantasy product
revenue is recognized ratably over the life of the sport season or the
contest period.
Website development and hosting
DWWC engages in consulting services to assist companies to develop and
maintain websites as well as host the websites. Revenue is recognized
as the service is performed.
Use of estimates
The preparation of financial statements in conformity with accounting principles
generally accepted in the United States requires management to make estimates
and assumptions that affect the reported amounts of assets and liabilities and
disclosure of contingent assets and liabilities at the date of the financial
statements and the reported amounts of revenue and expenses during the reporting
period. Actual results could differ from those estimates.
F-6
<PAGE>
DAEDALUS WORLD WIDE CORPORATION
NOTES TO FINANCIAL STATEMENTS, CONTINUED
(2) SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - (CONTINUED):
Concentration of credit risk
DWWC's financial instruments that potentially subject DWWC to significant
concentrations of credit risk consist of cash and cash equivalents. DWWC's cash
and cash equivalents are highly liquid and low risk. During 1998, approximately
52% of DWWC's revenue came from SportsLine.com, Inc and for the nine months
ended September 30, 1999, 100% (unaudited) of DWWC's revenue came from
SportsLine.com, Inc.
Unaudited interim financial statements
In the opinion of management, the unaudited interim financial statements contain
all adjustments (which include only normal recurring adjustments) necessary to
present fairly the financial position of DWWC as of September 30, 1999, and the
results of operations, changes in shareholders' deficit and cash flows for the
nine months ended September 30, 1999.
(3) PROPERTY AND EQUIPMENT
Property and equipment, net consists of the following:
<TABLE>
<CAPTION>
Estimated Useful Lives
(Years) December 31, 1998 September 30, 1999
------- ----------------- ------------------
(unaudited)
<S> <C> <C> <C>
Computer Equipment 3-5 $79,471 $171,851
Furniture and Fixtures 7 9,476 20,482
----- ------
88,947 192,333
Less-accumulated depreciation (20,148) (47,809)
------- --------
$68,799 $144,524
======= ========
</TABLE>
Depreciation expense on property and equipment amounted to $15,209 and $27,661
(unaudited) in the year ended December 31, 1998 and the nine months ended
September 30, 1999, respectively.
(4) NOTE PAYABLE
In May 1998, DWWC borrowed $200,000 under a promissory note with SportsLine.com,
Inc. The note carries a variable interest rate of two percentage points over the
prime rate of 7.75% at December 31, 1998 and is payable in annual installments
of $25,000 plus accrued interest. The note was paid in full in December 1999.
(5) SHAREHOLDERS' EQUITY
DWWC was originally capitalized with cash of $22,400 from its founding
shareholders. DWWC's original certificate of incorporation authorized the
issuance of up to 200 shares with no par value. DWWC amended its certificate of
incorporation in April 1998 to increase the number of authorized shares to
1,000. DWWC declared a distribution of stock reflected as a two-for-one split in
June 1998 which has been retroactively reflected in the accompanying financial
statements. Upon termination of employment a shareholder returned his common
stock owned to DWWC for no compensation.
F-7
<PAGE>
DAEDALUS WORLD WIDE CORPORATION
NOTES TO FINANCIAL STATEMENTS, CONTINUED
(6) INCOME TAXES
DWWC has recorded income tax expense representing the current income taxes
payable for the respective period. The deferred income tax benefit totaling
approximately $30,000 and $76,000 (unaudited) in the year ended December 31,1998
and the nine months ended September 30, 1999, respectively, has been fully
offset by a corresponding increase in a valuation allowance given the
uncertainty of realization. Temporary differences consist primarily of various
expenses not deductible until paid.
(7) COMMITMENTS AND CONTINGENCIES
DWWC leases its office and computer and communications equipment under
noncancellable operating leases that expire on various dates through 2003. The
office lease requires DWWC to pay operating costs, including property tax over a
predetermined base and maintenance costs and includes rent adjustment clauses.
Rent expense amounted to approximately $33,063 and $46,715 (unaudited) for the
year ended December 31, 1998 and nine months ended September 30, 1999,
respectively.
Future minimum lease payments for operating leases as of December 31, 1998 are
as follows:
1999 $109,746
2000 112,946
2001 92,461
2002 61,600
2003 48,000
--------
Total minimum lease payments $424,753
========
(8) SUBSEQUENT EVENT
In December 1999, SportsLine.com, Inc. purchased DWWC for consideration valued
at approximately $31,780,000, consisting of $4,000,000 cash and 600,000 shares
of common stock of SportsLine.com, Inc. valued at approximately $27,780,000.
F-8
EXHIBIT 99.3
SPORTSLINE.COM, INC.
INTRODUCTION TO UNAUDITED PRO FORMA FINANCIAL INFORMATION
On December 6, 1999, SportsLine.com, Inc. (the "Company") acquired Daedalus
World Wide Corporation ("DWWC") for consideration valued at approximately
$31,780,000 consisting of $4,000,000 cash and 600,000 shares of the Company
valued at $27,780,000.
The Unaudited Pro Forma Combined Statements of Operations for the nine
months ended September 30, 1999 and the year ended December 31, 1998 give effect
to the acquisition of DWWC as if it had occurred on January 1, 1998. The
Unaudited Pro Forma Combined Balance Sheet as of September 30, 1999 gives effect
to the acquisition of DWWC as if it had occurred on that date.
The Unaudited Pro Forma Financial Information is intended for informational
purposes only and is not necessarily indicative of the future financial position
or future results of operations of the consolidated company after the
acquisition of DWWC that would have actually occurred had the acquisition of
DWWC been effected as of the dates described above.
P-1
<PAGE>
SPORTSLINE.COM, INC.
UNAUDITED PRO FORMA COMBINED BALANCE SHEET
SEPTEMBER 30, 1999
(IN THOUSANDS, EXCEPT SHARE DATA)
<TABLE>
<CAPTION>
Pro Forma Pro Forma
SportsLine DWWC Adjustments Combined
---------- --------- ----------- ---------
<S> <C> <C> <C> <C>
ASSETS
CURRENT ASSETS:
Cash and cash equivalents ......................... $ 64,509 $ 80 $ (4,000)(a) $ 60,589
Marketable securities ............................. 33,868 -- 33,868
Accounts receivable ............................... 8,866 -- (175)(c) 8,691
Deferred advertising and content costs ........... 21,538 -- 21,538
Prepaid expenses and other current assets ......... 11,655 11 (278)(b) 11,388
--------- --------- --------- ---------
Total current assets .......................... 140,436 91 (4,453) 136,074
RESTRICTED CASH EQUIVALENTS .......................... 12,989 -- 12,989
NONCURRENT MARKETABLE SECURITIES ..................... 66,918 -- 66,918
LICENSING RIGHTS ..................................... 5,950 -- 5,950
NONCURRENT DEFERRED ADVERTISING -AOL ................. 7,667 -- 7,667
NONCURRENT DEFERRED ADVERTISING AND CONTENT - CBS .... 33,038 -- 33,038
PROPERTY AND EQUIPMENT, net .......................... 7,718 145 7,863
GOODWILL ............................................. 11,185 -- 31,826(a) 43,011
OTHER ASSETS ......................................... 11,454 -- -- 11,454
--------- --------- --------- ---------
$ 297,355 $ 236 $ 27,373 $ 324,964
========= ========= ========= =========
LIABILITIES AND SHAREHOLDERS' EQUITY
CURRENT LIABILITIES:
Accounts payable .................................. $ 1,059 $ 2 $ 1,061
Accrued liabilities ............................... 8,890 30 8,920
Current portion of capital lease obligations ...... 275 -- 275
Current portion of note payable ................... -- 25 (25)(c) --
Deferred revenue .................................. 2,691 278 (278)(b) 2,691
--------- --------- --------- ---------
Total current liabilities .................... 12,915 335 (303) 12,947
NOTE PAYABLE, net of current portion ................. -- 150 (150)(c) --
ACCRUED AOL OBLIGATION ............................... 8,274 -- 8,274
CONVERTIBLE SUBORDINATED NOTES ....................... 90,000 -- -- 90,000
--------- --------- --------- ---------
Total liabilities ............................ 111,189 485 (453) 111,221
--------- --------- --------- ---------
MINORITY INTEREST .................................... 7,720 -- 7,720
SHAREHOLDERS' EQUITY:
Preferred stock, $0.01 par value,
1,000,000 shares authorized, none
issued and outstanding .......................... -- -- --
Common stock, $0.01 par value,
200,000,000 shares authorized,
23,590,885 issued and
outstanding actual, 24,190,885 issued
and outstanding pro forma ....................... 236 -- 6(a) 242
Additional paid-in capital ........................ 288,016 22 27,820(a) 315,858
Accumulated deficit ............................... (109,806) (271) -- (110,077)
--------- --------- --------- ---------
Total shareholders' equity .................... 178,446 (249) 27,826 206,023
--------- --------- --------- ---------
$ 297,355 $ 236 $ 27,373 $ 324,964
========= ========= ========= =========
</TABLE>
P-2
<PAGE>
SPORTSLINE.COM, INC.
UNAUDITED PRO FORMA COMBINED STATEMENT OF OPERATIONS
NINE MONTHS ENDED SEPTEMBER 30, 1999
(IN THOUSANDS, EXCEPT SHARE AND PER SHARE DATA)
<TABLE>
<CAPTION>
Pro Forma Pro Forma
SportsLine DWWC Adjustments Combined
------------ ------------ ------------- ------------
<S> <C> <C> <C> <C>
REVENUE ............................................ $ 39,236 $ 320 $ (320)(b) $ 39,236
COST OF REVENUE .................................... 20,498 23 (320)(b) 20,201
------------ ------------ ------------ ------------
GROSS MARGIN ....................................... 18,738 297 -- 19,035
------------ ------------ ------------ ------------
OPERATING EXPENSES:
Product development .............................. 1,221 -- 1,221
Sales and marketing .............................. 25,595 291 25,886
General and administrative ....................... 13,946 172 14,118
Depreciation and amortization .................... 20,190 28 3,410(a) 23,628
------------ ------------ ------------ ------------
Total operating expenses ............... 60,952 491 3,410 64,853
------------ ------------ ------------ ------------
LOSS FROM OPERATIONS ............................... (42,214) (194) (3,410) (45,818)
INTEREST EXPENSE ................................... (3,895) (12) 12 (b) (3,895)
INTEREST AND OTHER INCOME, net ..................... 6,880 4 (177)(b)(d) 6,707
------------ ------------ ------------ ------------
LOSS BEFORE INCOME TAXES ........................... (39,229) (202) (3,575) (43,006)
INCOME TAX EXPENSE ................................. -- (1) 1(e) --
------------ ------------ ------------ ------------
NET LOSS FROM CONTINUING OPERATIONS (f) ............ $ (39,229) $ (203) $ (3,574) $ (43,006)
============ ============ ============ ============
NET LOSS FROM CONTINUING OPERATIONS
PER SHARE - BASIC AND DILUTED (f)................... $ (1.74) $ (1.85)
============ ============
WEIGHTED AVERAGE COMMON SHARES OUTSTANDING - BASIC
AND DILUTED ........................................ 22,585,447 600,000(a) 23,185,447
============ ============ ============
</TABLE>
P-3
<PAGE>
SPORTSLINE.COM, INC.
UNAUDITED PRO FORMA COMBINED STATEMENT OF OPERATIONS
YEAR ENDED DECEMBER 31, 1998
(IN THOUSANDS, EXCEPT SHARE AND PER SHARE DATA)
<TABLE>
<CAPTION>
Pro Forma Pro Forma
SportsLine DWWC Adjustments Combined
------------ ------------ ------------ ------------
<S> <C> <C> <C> <C>
REVENUE ............................................ $ 30,551 $ 380 $ (199)(b) $ 30,732
COST OF REVENUE .................................... 17,231 24 (199)(b) 17,056
------------ ------------ ------------ ------------
GROSS MARGIN ....................................... 13,320 356 -- 13,676
------------ ------------ ------------ ------------
OPERATING EXPENSES:
Product development .............................. 1,313 -- 1,313
Sales and marketing .............................. 20,482 245 20,727
General and administrative ....................... 14,259 129 14,388
Depreciation and amortization .................... 17,104 15 4,547 (a) 21,666
------------ ------------ ------------ ------------
Total operating expenses ............... 53,158 389 4,547 58,094
------------ ------------ ------------ ------------
LOSS FROM OPERATIONS ............................... (39,838) (33) (4,547) (44,418)
INTEREST EXPENSE ................................... (118) (10) 10 (b) (118)
INTEREST AND OTHER INCOME, net ..................... 4,447 5 (230)(b)(d) 4,222
------------ ------------ ------------ ------------
LOSS BEFORE INCOME TAXES ........................... (35,509) (38) (4,767) (40,314)
INCOME TAX EXPENSE ................................. -- (16) 16 (e) --
------------ ------------ ------------ ------------
NET LOSS ........................................... $ (35,509) $ (54) $ (4,751) $ (40,314)
============ ============ ============ ============
NET LOSS PER SHARE - BASIC AND DILUTED ............. $ (1.94) $ (2.13)
============ ============
WEIGHTED AVERAGE COMMON SHARES OUTSTANDING - BASIC
AND DILUTED ........................................ 18,305,927 600,000 (a) 18,905,927
============ ============ ============
</TABLE>
P-4
<PAGE>
SPORTSLINE.COM, INC.
UNAUDITED NOTES TO PRO FORMA COMBINED FINANCIAL STATEMENTS
(a) In December 1999, SportsLine.com, Inc. (the "Company") acquired Daedalus
World Wide Corporation ("DWWC") for consideration valued at approximately
$31,780,000 consisting of $4,000,000 cash and 600,000 shares of the Company
valued at $27,780,000. The allocation of the purchase price to goodwill
amounted to $31,826,000 which will be amortized over seven years for an
annual expense of approximately $4,547,000.
(b) This pro forma adjustment is the elimination of transactions between the
Company and DWWC.
(c) This pro forma adjustment is the elimination of a note receivable/payable
between the Company and DWWC.
(d) This pro forma adjustment is the reduction of interest income due to the
expenditure of $4,000,000 interest earning cash in the purchase assuming
the acquisition had occurred at the beginning of the respective period.
(e) This pro forma adjustment is to eliminate income tax expense which would
have not been incurred assuming the acquisition had occurred at the
beginning of the respective period.
(f) An extraordinary gain of approximately $21,809,000 resulting from the
Company's early extinguishment of debt has been excluded from the Company's
unaudited historical statement of operations included in the pro forma
combined statement of operations for the nine months ended September 30,
1999 due to its non-recurring nature.
P-5
