Intuit, Inc. Form 8-K
Table of Contents

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C. 20549


FORM 8-K

CURRENT REPORT
PURSUANT TO SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934

August 24, 2001
(Date of report)

August 21, 2001
(Date of earliest event reported)

INTUIT INC.

(Exact Name of Registrant as Specified in its Charter)
         
Delaware   000-21180   77-0034661
(State or other
Jurisdiction of
Incorporation)
  (Commission File Number)   (I.R.S. Employer
Identification No.)

2535 Garcia Avenue
Mountain View, CA 94043

(Address of Principal Executive Offices)
(Zip Code)

Registrant’s telephone number, including area code: (650) 944-6000

 


TABLE OF CONTENTS

ITEM 5. OTHER EVENTS.
CONDENSED CONSOLIDATED STATEMENT OF OPERATIONS
CONDENSED CONSOLIDATED BALANCE SHEET
SIGNATURES

ITEM 5. OTHER EVENTS.

Press Release Announcing Fourth Quarter and Fiscal Year 2001 Results

Fiscal 2001 Results

On August 21, 2001, Intuit announced its financial results for the fourth quarter and fiscal quarter ended July 31, 2001. Intuit reported fiscal 2001 revenue of $1.26 billion, an increase of 15 percent over fiscal 2000 revenue of $1.09 billion. Revenue growth was driven by strong performance in three of Intuit’s businesses — Quicken Loans, payroll and consumer tax. Intuit reported a net loss for the year of $82.8 million, or a loss of $0.40 per share, compared to net income of $305.7 million, or $1.45 per share, in fiscal 2000. Year-over-year comparisons are complicated due to significant non-operating events that impacted fiscal 2000 and 2001 differently. Fiscal 2000 results benefited from a net $481.1 million pre-tax gain (or $1.37 in after-tax earnings per share) relating to marketable securities and other investments, which did not occur this year. In fiscal 2001, Intuit’s results were impacted by the following significant pre-tax charges totaling approximately $187.3 million (or $0.69 in after-tax earnings per share): $98.1 million in combined write-downs and losses related to marketable securities and other investments; and $89.2 million more in acquisition-related costs in fiscal 2001 compared to fiscal 2000, due primarily to the accelerated write-down of goodwill for prior acquisitions.

Fourth-Quarter Results

Intuit reported revenue of $191.2 million for the fourth quarter of fiscal 2001, an increase of 18 percent over the $162.3 million for the year-ago quarter. Growth was driven by very strong results from two of Intuit’s businesses — Quicken Loans and payroll. Intuit reported a net loss for the quarter of $61.3 million, or a loss of $0.29 per share. Intuit typically reports a loss in its fourth quarter when revenue from tax preparation businesses is minimal, but operating expenses to develop new products and services continue at relatively consistent levels. In the year-ago quarter, Intuit reported net income of $17.1 million, or $0.08 per share. Similar to annual results, quarterly comparisons are complicated due to a significant non-operating event. In fiscal 2000, fourth-quarter results benefited from a net $79 million pre-tax gain (or $0.22 in after-tax earnings per share) relating to marketable securities and other investments, which did not occur this year.

(Financial statements follow)

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Table of Contents

INTUIT INC.
CONDENSED CONSOLIDATED STATEMENT OF OPERATIONS
(In thousands, except per share data)
(Unaudited)

                                   
      Quarter Ended   Year Ended
      July 31,   July 31,
     
 
      2000   2001   2000   2001
     
 
 
 
Net revenue
  $ 162,259     $ 191,169     $ 1,093,825     $ 1,261,461  
Costs and expenses:
                               
Cost of revenue
                               
 
Products and services
    57,347       63,814       282,385       312,040  
 
Amortization of purchased software and other
    1,762       3,729       8,798       14,949  
Customer service and technical support
    25,996       33,285       139,550       149,353  
Selling and marketing
    48,179       55,070       264,367       270,216  
Research and development
    42,554       51,911       169,083       207,085  
General and administrative
    18,899       25,304       83,745       102,918  
Charge for purchased research and development
                1,312       238  
Acquisition related costs
    36,238       42,874       157,948       248,202  
Reorganization costs
                3,500        
 
   
     
     
     
 
Total costs and expenses
    230,975       275,987       1,110,688       1,305,001  
 
   
     
     
     
 
Loss from operations
    (68,716 )     (84,818 )     (16,863 )     (43,540 )
Interest and other income and expense, net
    18,462       12,630       48,443       60,366  
Gain (loss) on marketable securities and other investments, net
    79,034       (10,746 )     481,130       (98,053 )
Net loss on divestiture of businesses
          (16,954 )           (15,315 )
 
   
     
     
     
 
Income (loss) before income tax, minority interest and cumulative effect of accounting change
    28,780       (99,888 )     512,710       (96,542 )
Income tax provision (benefit)
    11,567       (38,795 )     207,184       (229 )
Minority interest
    68       196       (135 )     794  
 
   
     
     
     
 
Income (loss) before cumulative effect of accounting change
    17,145       (61,289 )     305,661       (97,107 )
Cumulative effect of accounting change, net of taxes of $9,543
                      14,314  
 
   
     
     
     
 
Net income (loss)
  $ 17,145     $ (61,289 )   $ 305,661     $ (82,793 )
 
   
     
     
     
 
Basic net income (loss) per share before cumulative effect of accounting change
  $ 0.08     $ (0.29 )   $ 1.52     $ (0.47 )
Cumulative effect of accounting change
                      0.07  
 
   
     
     
     
 
Basic net income (loss) per share
  $ 0.08     $ (0.29 )   $ 1.52     $ (0.40 )
 
   
     
     
     
 
Shares used in per share amounts
    203,721       209,800       200,770       207,959  
 
   
     
     
     
 
Diluted net income (loss) per share before cumulative effect of accounting change
  $ 0.08     $ (0.29 )   $ 1.45     $ (0.47 )
Cumulative effect of accounting change
                      0.07  
 
   
     
     
     
 
Diluted net income (loss) per share
  $ 0.08     $ (0.29 )   $ 1.45     $ (0.40 )
 
   
     
     
     
 
Shares used in per share amounts
    211,940       209,800       211,271       207,959  
 
   
     
     
     
 

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Table of Contents

INTUIT INC.
CONDENSED CONSOLIDATED BALANCE SHEET
(In thousands)
(Unaudited)

                     
        July 31,   July 31,
        2000   2001
       
 
ASSETS                
 
Current assets:
               
Cash and cash equivalents
  $ 416,953     $ 450,104  
Short-term investments
    1,050,220       1,119,305  
Marketable securities
    225,878       85,307  
Customer deposits
    181,678       230,410  
Accounts receivable, net
    67,420       27,990  
Mortgage loans
    60,330       123,241  
Deferred income taxes
    41,843       77,948  
Prepaid expenses and other current assets
    30,538       33,617  
 
   
     
 
 
Total current assets
    2,074,860       2,147,922  
Property and equipment, net
    167,707       185,969  
Goodwill, net
    358,890       326,986  
Purchased intangibles, net
    79,988       88,348  
Long-term deferred income taxes
    92,985       145,905  
Investments
    31,160       24,107  
Loans due from affiliates
    6,464       9,502  
Other assets
    12,914       32,997  
 
   
     
 
Total assets
  $ 2,824,968     $ 2,961,736  
 
   
     
 
 
LIABILITIES AND STOCKHOLDERS’ EQUITY                
 
Current liabilities:
               
Accounts payable
  $ 79,145     $ 66,400  
Accrued compensation and related liabilities
    49,303       64,325  
Payroll service obligations
    177,002       205,067  
Escrow liabilities
    8,479       23,373  
Drafts payable
    23,598       63,518  
Deferred revenue
    107,578       125,018  
Income tax payable
    110,743       82,661  
Short-term note payable
    34,286       38,672  
Other current liabilities
    162,769       118,928  
 
   
     
 
 
Total current liabilities
    752,903       787,962  
Long-term obligations
    538       12,413  
Minority interest
    238       35  
Stockholders’ equity
    2,071,289       2,161,326  
 
   
     
 
Total liabilities and stockholders’ equity
  $ 2,824,968     $ 2,961,736  
 
   
     
 

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Table of Contents

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.

     
Date:   August 23, 2001 INTUIT INC.
 
  By: /s/ Greg J. Santora

Greg J. Santora
Senior Vice President and
Chief Financial Officer

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