<PAGE> 1
Exhibit 99
CHECKFREE MANAGEMENT CORPORATION
UNAUDITED CONDENSED BALANCE SHEETS
<TABLE>
<CAPTION>
June 30, September 30,
1999 1999
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(In thousands, except
share data)
<S> <C> <C>
ASSETS
Current assets:
Cash..................................................................... $ 291 $ (3)
Related party note receivable, current portion........................... 1,970 2,319
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Total current assets...................................... 2,261 2,316
Related party note receivable, less current portion........................... 27,798 27,021
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Total..................................................... $ 30,059 $ 29,337
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LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Claims payable............................................................ $ 318 $ 226
Accrued liabilities....................................................... - 132
Deposit for future claims liability....................................... 1,970 2,319
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Total current liabilities................................... 2,288 2,677
Deposit for future claims liability, less current portion...................... 27,430 26,313
Redeemable Preferred Stock:
Class C, 350 authorized shares, $100 par value;
350 shares issued and outstanding...................................... 36 37
Class D, 750 authorized shares, $100 par value;
750 shares issued and outstanding...................................... 78 79
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Total redeemable preferred stock........................... 114 116
Stockholders' equity:
Preferred stock- Class B, 600 authorized shares, $100 par value;
600 shares issued, no amounts outstanding.............................. - -
Common stock- Class A, 1,900 authorized shares, $100 par value;
1,900 shares issued and outstanding.................................... 190 190
Retained earnings......................................................... 37 41
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Total stockholders' equity................................. 227 231
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Total..................................................... $ 30,059 $ 29,337
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</TABLE>
See notes to Interim Unaudited Condensed Financial Statements
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CHECKFREE MANAGEMENT CORPORATION
UNAUDITED CONDENSED STATEMENT OF OPERATIONS
<TABLE>
<CAPTION>
Three months ended
September 30, 1999
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(In thousands)
<S> <C>
Revenues:
Interest income from related party................................. $ 631
Other interest income.............................................. 4
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Total revenues...................................... 635
Expenses:
Interest expense on deposit for future claims liability............ 572
General and administrative......................................... 59
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Total expenses...................................... 631
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Income before income tax................................................ 4
Income tax expense...................................................... -
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Net income.............................................................. 4
Dividends on redeemable preferred stock................................. 2
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Net income applicable to common shareholders............................ $ 2
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</TABLE>
See Notes to Interim Unaudited Condensed Financial Statements
<PAGE> 3
CHECKFREE MANAGEMENT CORPORATION
UNAUDITED CONDENSED STATEMENT OF CASH FLOWS
<TABLE>
<CAPTION>
Three Months Ended
September, 30 1999
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(In thousands)
<S> <C>
Cash flows from operating activities:
Net income........................................................... $ 4
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Net cash provided by operating activities............. 4
Cash flows from investing activities:
Principal payments received on related party note.................... 429
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Net cash provided by investing activities............. 429
Cash flows from financing activities:
Payments made on health plan liabilities............................. (727)
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Net cash used in financing activities................. (727)
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Net decrease in cash..................................................... (294)
Cash:
Beginning of period.................................................. 291
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End of period........................................................ $ (3)
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Supplemental disclosure of cash flow information:
Interest paid........................................................ $ 572
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Dividends accrued on redeemable preferred stock....................... $ 2
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</TABLE>
See notes to Interim Unaudited Condensed Financial Statements
<PAGE> 4
CHECKFREE MANAGEMENT CORPORATION
NOTES TO INTERIM UNAUDITED CONDENSED FINANCIAL STATEMENTS
FOR THE THREE MONTHS ENDED SEPTEMBER 30, 1999
1. INTRODUCTION
CheckFree Management Corporation ("CheckFree Management") was formed
from a plan of recapitalization of RCM Systems, Inc., a wholly owned
subsidiary of CheckFree Holdings Corporation ("CheckFree Holdings"), on
December 8, 1998. CheckFree Management was formed as a medical claims
management subsidiary in order to appropriately minimize, control, and
manage the medical claims liabilities of CheckFree Holdings and its
subsidiaries. As of September 30, 1999, CheckFree Holdings and its
subsidiaries own approximately 63% of CheckFree Management.
The accompanying condensed consolidated financial statements and notes
thereto have been prepared in accordance with the rules and regulations
of the Securities and Exchange Commission for Form 10-Q and include all
of the information and disclosures required by generally accepted
accounting principles for interim financial reporting. The results of
operations for the three months ended September 30, 1999 are not
necessarily indicative of the results for the full year.
These financial statements should be read in conjunction with the
financial statements, accounting policies and financial notes thereto
of CheckFree Management included within CheckFree Holdings Corporation
and Subsidiaries Annual Report filed with the Securities and Exchange
Commission on Form 10-K/A. In the opinion of management, the
accompanying condensed unaudited financial statements reflect all
adjustments (consisting only of normal recurring adjustments) which are
necessary for a fair representation of financial results for the
interim periods presented.
2. RECENT ACCOUNTING PRONOUNCEMENTS
In June 1998 the Financial Accounting Standards Board issued SFAS 133,
"Accounting for Derivative Instruments and Hedging Activities," which
will require that all derivative financial instruments be recognized as
either assets or liabilities in the balance sheet. SFAS 133 will be
effective for the Company's first quarter of fiscal 2001. The Company's
current investment policy does not allow for the use of hedging
instruments. In anticipation of the adoption of SFAS 133, the Company
is currently reviewing all outstanding contracts for evidence of
embedded derivative. Based on the procedures undertaken through this
point, management does not believe that adoption of SFAS 133 will have
a material impact on its results of operations
3. SUBSEQUENT EVENTS
On November 19, 1999, CheckFree Corporation, a wholly-owned subsidiary
of CheckFree Holdings, purchased all outstanding shares of Class D
Preferred Stock. Subsequent to this purchase, CheckFree Holdings and
its subsidiaries own 89% of the Company.
