EXHIBIT 99.1
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Contacts: | | |
| | |
URS Corporation | | Citigate Sard Verbinnen |
| | |
Kent P. Ainsworth | | Hugh Burns/Jamie Tully/Kara Findlay |
Executive Vice President | | (212) 687-8080 |
& Chief Financial Officer | | |
OR | | |
H. Thomas Hicks | | |
Vice President, Finance | | |
(415) 774-2700 | | |
URS CORPORATION REPORTS FISCAL 2005
YEAR-END RESULTS
Revenues Increased 16% and Net Income
Rose 34% from Fiscal 2004
Repaid $238 Million in Debt in 2005; Debt to Total Capitalization
Improved to 19%
Company Provides Guidance For 2006
SAN FRANCISCO, CA — March 15, 2006— URS Corporation (NYSE: URS) today reported its financial results for the fiscal year ended December 30, 2005. Revenues increased 16% to $3,917.6 million from $3,382.0 million for the Company’s 2004 fiscal year, which ended on October 31, 2004.1
Net income for fiscal 2005 was $82.5 million, or $1.72 per share, fully diluted, including a pre-tax charge of $33.1 million, or $0.42 per share, net of tax, related to $127.2 million of note redemptions, the retirement of $10.0 million of the Company’s 121/4% notes and $1.8 million of its 61/2% debentures, and the restructuring of the Company’s senior credit facility, all of which took place during the first nine months of fiscal 2005. Net income for fiscal 2004 ended October 31, 2004, was $61.7 million, or $1.53 per share, fully diluted. Net income for fiscal 2004 included a
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1 | | As previously announced, the Company changed its fiscal year, effective January 1, 2005. URS now reports its financial results on a 52/53-week fiscal year ending on the Friday closest to December 31, with interim quarters ending on the Fridays on or closest to, March 31, June 30 and September 30. URS’ prior fiscal year ended on October 31. |
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previously reported pre-tax charge of $28.2 million, or $0.36 per share net of tax, related to note redemptions of $260 million. Excluding these charges, the effects of the public stock offerings and the effect of interest savings in both periods, 2005 diluted earnings per share (“EPS’) were $2.12, as compared with $1.92 in fiscal 2004.
Weighted-average shares outstanding for purposes of calculating diluted EPS were 47.8 million in fiscal 2005, compared with 40.4 million in fiscal 2004. The increase in weighted-average shares outstanding is the result of the Company’s common stock offering in the second quarter of fiscal 2005 and additional shares issued pursuant to the Company’s employee stock option and purchase plans.
During fiscal 2005, the Company repaid $238.4 million of debt, including $127.2 million of note redemptions through the use of cash on hand and proceeds from the Company’s common stock offering in the second quarter of fiscal 2005. As a result, the Company’s debt to total capitalization ratio improved to 19% at December 30, 2005, from 34% at December 31, 2004.
As of December 30, 2005, the Company’s backlog was $3.84 billion, compared to $3.63 billion as of December 31, 2004.
Commenting on the Company’s financial results, Martin M. Koffel, Chairman and Chief Executive Officer, stated: “URS delivered strong financial results in 2005, driven by high growth rates in our federal, state and local government and international business sectors. In addition, we benefited by shifting resources into emerging areas of the domestic private sector market, including assisting utility companies to comply with new environmental regulations affecting coal-fired power plants.”
Mr. Koffel continued: “Throughout the year, URS also benefited from our focus on cash management and our deleveraging strategy. URS generated $200.4 million in cash from operations in 2005 and repaid $238.4 million of debt, including $127.2 million of note redemptions through the use of proceeds from our common stock offering in June. These actions helped reduce interest expense by 48% for the year.”
“Looking forward, we see favorable long-term trends in all of our sectors, and have entered 2006 with the strongest book of business in the Company’s history. We are well positioned to continue to deliver top line growth and profits for our stockholders.”
For the fourth quarter of fiscal 2005, the Company reported revenues of $1,071.0 million, net income of $25.9 million, and diluted EPS of $0.51. For the fourth quarter of fiscal 2004 ended on October 31, 2004, the Company reported revenues of $907.4 million, net income of $26.1 million, and diluted EPS of $0.59.
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The Company noted that its change to a calendar fiscal year resulted in a two-month transition period in November and December 2004 that is not indicative of any quarterly or annual periods. The transition also makes it impractical to make meaningful net income and EPS comparisons between the calendar fourth quarter periods in 2004 and 2005. However, URS has provided revenue comparisons between the fourth quarter of fiscal 2005 and the comparable calendar period in 2004 at the end of this release.
Weighted-average shares outstanding for purposes of calculating diluted EPS were 50.4 million in the fourth quarter of fiscal 2005, compared with 44.6 million in the fourth quarter of fiscal 2004 ended on October 31, 2004.
Business Segments
In addition to providing consolidated financial results, the Company provides separate financial information for its two segments: the URS Division and the EG&G Division. The URS Division includes the Company’s work in the state and local government market, the private sector and the international business. In addition, the URS Division includes a portion of the Company’s federal business, consisting primarily of facilities and environmental services. The EG&G Division primarily serves the federal government market, providing a range of operations and maintenance and technical support services.
URS Division.For fiscal 2005, the URS Division reported revenues of $2,556.7 million and operating income of $194.2 million, compared to revenues of $2,255.2 million and operating income of $168.2 million for fiscal 2004 ended October 31, 2004.
For the fourth quarter of fiscal 2005, the URS Division reported revenues of $701.5 million and operating income of $56.6 million, compared to revenues of $589.9 million and operating income of $46.0 million for the fourth quarter of fiscal 2004 ended October 31, 2004.
EG&G Division.For fiscal 2005, the EG&G Division reported revenues of $1,369.0 million and operating income of $63.4 million, compared to revenues of $1,129.8 million and operating income of $54.9 million for fiscal 2004 ended October 31, 2004.
For the fourth quarter of fiscal 2005, the EG&G Division reported revenues of $372.8 million and operating income of $16.0 million, compared to revenues of $317.9 million and operating income of $13.3 million for the fourth quarter of fiscal 2004 ended October 31, 2004.
Earnings Outlook
For fiscal 2006, the Company expects revenues of approximately $4.1 billion. Assuming it meets this revenue expectation, the Company expects that net income will be approximately $110
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million and EPS will be approximately $2.12 for fiscal 2006. The Company’s net income and EPS guidance for 2006 includes an expected after tax impact of $10 million, or $0.19 per share, related to the implementation of Statement of Financial Accounting Standards 123 (Revised) (“SFAS 123(R)”), which requires that the costs of equity based compensation be recognized in the financial statements. In addition, the Company expects its effective tax rate in 2006 to be approximately 42%, consistent with 2005. Finally, the Company’s weighted average shares outstanding for 2006 is expected to be 52 million, compared with 47.8 million in 2005. The increase in weighted average shares outstanding primarily reflects the full year impact of the Company’s common stock offering in the second quarter of fiscal 2005 and shares expected to be issued pursuant to the Company’s employee stock option and purchase plans.
URS expects its 2006 first quarter EPS will be between 18% and 22% of the Company’s full year 2006 EPS guidance of $2.12.
The Company expects to repay approximately $100 million of debt during fiscal 2006.
This press release contains certain non-GAAP financial measures for net income and earnings per share showing the effects of our stock offerings, our note redemptions and refinancing, and the impact of SFAS 123(R), which are reconciled against the most directly comparable GAAP measure in the tables attached to the end of this press release.
Web cast Information
URS will host a dial-in conference call on Thursday, March 16, 2006 at 11:00 a.m. (EST) to discuss its fourth quarter and year-end fiscal 2005 results. A live web cast of this call will be available on the investor relations portion of URS’ website at www.urscorp.com.
URS Corporation offers a comprehensive range of professional planning and design, systems engineering and technical assistance, program and construction management, and operations and maintenance services for transportation, commercial/ industrial, facilities, environmental, water/wastewater, homeland security, installations and logistics, and defense systems. Headquartered in San Francisco, the Company operates in more than 20 countries with approximately 29,000 employees providing engineering and technical services to federal, state and local governmental agencies as well as private clients in the chemical, pharmaceutical, oil and gas, power, manufacturing, mining and forest products industries (www.urscorp.com).
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TABLES TO FOLLOW
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Statements contained in this earning release that are not historical facts may constitute forward-looking statements, including statements relating to the Company’s future revenue, future earnings, future debt repayment and future business prospects. The Company believes that its expectations are reasonable and are based on reasonable assumptions. However, such forward-looking statements by their nature involve risks and uncertainties that could cause actual results to differ materially from the results predicted. The potential risks and uncertainties include, but are not limited to: demand for the Company’s services in an economic downturn, changes in the Company’s book of business; the Company’s compliance with government contract procurement regulations; the Company’s dependence on government appropriations and procurements; the Company’s ability to make accurate estimates; the Company’s ability to bid, renew and execute contracts and guarantees; liability for pending and future litigation; the impact of changes in laws and regulations; the Company’s ability to maintain adequate insurance coverage; a decline in defense spending; industry competition; the Company’s ability to attract and retain key individuals; risks associated with SFAS 123(R); the Company’s ability to service its debt; risks associated with international operations; project management and accounting software risks; force majeure events; the Company’s relationships with its labor unions; and other factors discussed more fully in the Company’s Form 10-K for the fiscal year ended December 30, 2005, as well as in other reports subsequently filed from time to time with the Securities and Exchange Commission. The Company assumes no obligation to update any forward-looking statements.
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URS CORPORATION AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
(In thousands, except per share data)
| | | | | | | | |
| | December 30, 2005 | | | December 31, 2004 | |
ASSETS | | | | | | | | |
Current assets: | | | | | | | | |
Cash and cash equivalents, including $61,319 and $59,175 of short-term money market funds, respectively | | $ | 101,545 | | | $ | 108,007 | |
Accounts receivable, including retainage of $37,280 and $43,844 respectively | | | 630,340 | | | | 579,953 | |
Costs and accrued earnings in excess of billings on contracts in process | | | 513,943 | | | | 400,418 | |
Less receivable allowances | | | (44,293 | ) | | | (38,719 | ) |
| | | | | | |
Net accounts receivable | | | 1,099,990 | | | | 941,652 | |
Deferred tax assets | | | 18,676 | | | | 24,682 | |
Prepaid expenses and other assets | | | 52,849 | | | | 26,061 | |
| | | | | | |
Total current assets | | | 1,273,060 | | | | 1,100,402 | |
Property and equipment at cost, net | | | 146,470 | | | | 142,907 | |
Goodwill | | | 986,631 | | | | 1,004,680 | |
Purchased intangible assets, net | | | 5,379 | | | | 7,749 | |
Other assets | | | 57,908 | | | | 52,010 | |
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| | $ | 2,469,448 | | | $ | 2,307,748 | |
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LIABILITIES AND STOCKHOLDERS’ EQUITY | | | | | | | | |
Current liabilities: | | | | | | | | |
Book overdraft | | $ | 1,547 | | | $ | 70,871 | |
Notes payable and current portion of long-term debt | | | 20,647 | | | | 48,338 | |
Accounts payable and subcontractors payable, including retainage of $13,323 and $13,302, respectively | | | 288,561 | | | | 144,435 | |
Accrued salaries and wages | | | 196,825 | | | | 171,004 | |
Accrued expenses and other | | | 82,404 | | | | 59,914 | |
Billings in excess of costs and accrued earnings on contracts in process | | | 108,637 | | | | 84,393 | |
| | | | | | |
Total current liabilities | | | 698,621 | | | | 578,955 | |
Long-term debt | | | 297,913 | | | | 508,584 | |
Deferred tax liabilities | | | 19,785 | | | | 40,373 | |
Other long-term liabilities | | | 108,625 | | | | 97,715 | |
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Total liabilities | | | 1,124,944 | | | | 1,225,627 | |
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Commitments and contingencies Stockholders’ equity: | | | | | | | | |
Preferred stock, authorized 3,000 shares; no shares outstanding Common shares, par value $.01; authorized 100,000 shares; 50,432 and 43,838 shares issued, respectively; and 50,380 and 43,786 shares outstanding, respectively | | | 504 | | | | 438 | |
Treasury stock, 52 shares at cost | | | (287 | ) | | | (287 | ) |
Additional paid-in capital | | | 925,087 | | | | 734,842 | |
Accumulated other comprehensive income (loss) | | | (3,985 | ) | | | 6,418 | |
Retained earnings | | | 423,185 | | | | 340,710 | |
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Total stockholders’ equity | | | 1,344,504 | | | | 1,082,121 | |
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| | $ | 2,469,448 | | | $ | 2,307,748 | |
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URS CORPORATION AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME
(In thousands, except per share data)
| | | | | | | | | | | | | | | | |
| | Three Months Ended | | | Twelve Months Ended | |
| | December 30, | | | October 31, | | | | December 30, | | | October 31, | |
| | 2005 | | | 2004 | | | 2005 | | | 2004 | |
| | (unaudited) | | | | | | | | | |
Revenues | | $ | 1,071,009 | | | $ | 907,435 | | | $ | 3,917,565 | | | $ | 3,381,963 | |
Direct operating expenses | | | 718,883 | | | | 581,331 | | | | 2,555,538 | | | | 2,140,890 | |
| | | | | | | | | | | | |
Gross profit | | | 352,126 | | | | 326,104 | | | | 1,362,027 | | | | 1,241,073 | |
Indirect, general and administrative expenses | | | 299,000 | | | | 273,573 | | | | 1,187,605 | | | | 1,079,088 | |
| | | | | | | | | | | | |
Operating income | | | 53,126 | | | | 52,531 | | | | 174,422 | | | | 161,985 | |
Interest expense | | | 5,472 | | | | 10,652 | | | | 31,587 | | | | 60,741 | |
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Income before income taxes | | | 47,654 | | | | 41,879 | | | | 142,835 | | | | 101,244 | |
Income tax expense | | | 21,720 | | | | 15,790 | | | | 60,360 | | | | 39,540 | |
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Net income | | | 25,934 | | | | 26,089 | | | | 82,475 | | | | 61,704 | |
Other comprehensive income (loss): | | | | | | | | | | | | | | | | |
Minimum pension liability adjustments, net of tax (benefit) | | | (4,223 | ) | | | (2,189 | ) | | | (4,493 | ) | | | (2,189 | ) |
Foreign currency translation adjustments | | | (1,900 | ) | | | 1,947 | | | | (5,910 | ) | | | 3,490 | |
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Comprehensive income | | $ | 19,811 | | | $ | 25,847 | | | $ | 72,072 | | | $ | 63,005 | |
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Earnings per share: | | | | | | | | | | | | | | | | |
Basic | | $ | .52 | | | $ | .60 | | | $ | 1.76 | | | $ | 1.58 | |
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Diluted | | $ | .51 | | | $ | .59 | | | $ | 1.72 | | | $ | 1.53 | |
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Weighted-average shares outstanding: | | | | | | | | | | | | | | | | |
Basic | | | 49,459 | | | | 43,467 | | | | 46,742 | | | | 39,123 | |
| | | | | | | | | | | | |
Diluted | | | 50,401 | | | | 44,595 | | | | 47,826 | | | | 40,354 | |
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URS CORPORATION AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS
(In thousands)
| | | | | | | | | | | | | | | | |
| | Three Months Ended | | | Twelve Months Ended | |
| | December 30, 2005 | | | October 31, 2004 | | | December 30, 2005 | | | October 31, 2004 | |
| | (unaudited) | | | | | | | | | |
Cash flows from operating activities: | | | | | | | | | | | | | | | | |
Net income | | $ | 25,934 | | | $ | 26,089 | | | $ | 82,475 | | | $ | 61,704 | |
| | | | | | | | | | | | |
Adjustments to reconcile net income to net cash from operating activities: | | | | | | | | | | | | | | | | |
Depreciation and amortization | | | 9,323 | | | | 9,934 | | | | 38,548 | | | | 41,407 | |
Amortization of financing fees | | | 462 | | | | 1,468 | | | | 3,777 | | | | 6,772 | |
Costs incurred for extinguishment of debt. | | | 6 | | | | 772 | | | | 33,131 | | | | 28,165 | |
Provision for doubtful accounts | | | 2,229 | | | | 5,052 | | | | 10,094 | | | | 14,777 | |
Deferred income taxes | | | 1,505 | | | | (2,107 | ) | | | 8,721 | | | | (4,746 | ) |
Stock compensation | | | 1,640 | | | | 2,043 | | | | 6,148 | | | | 4,119 | |
Tax benefit of stock compensation | | | 5,700 | | | | 147 | | | | 14,969 | | | | 4,117 | |
Changes in assets and liabilities: | | | | | | | | | | | | | | | | |
Accounts receivable and costs and accrued earnings in excess of billings on contracts in process | | | (75,803 | ) | | | (58,420 | ) | | | (161,632 | ) | | | (80,646 | ) |
Prepaid expenses and other assets | | | (4,909 | ) | | | 2,061 | | | | (30,441 | ) | | | 1,553 | |
Accounts payable, accrued salaries and wages and accrued expenses | | | 108,746 | | | | 20,540 | | | | 179,525 | | | | 23,618 | |
Billings in excess of costs and accrued earnings on contracts in process | | | (2,624 | ) | | | 5,960 | | | | 22,453 | | | | (3,528 | ) |
Other long-term liabilities | | | 3,525 | | | | (2,778 | ) | | | 10,842 | | | | (882 | ) |
Other liabilities, net | | | (9,251 | ) | | | (2,387 | ) | | | (18,173 | ) | | | (910 | ) |
| | | | | | | | | | | | |
Total adjustments and changes | | | 40,549 | | | | (17,715 | ) | | | 117,962 | | | | 33,816 | |
| | | | | | | | | | | | |
Net cash from operating activities | | | 66,483 | | | | 8,374 | | | | 200,437 | | | | 95,520 | |
| | | | | | | | | | | | |
Cash flows from investing activities: | | | | | | | | | | | | | | | | |
Payment of business acquisition | | | (14 | ) | | | — | | | | (1,367 | ) | | | — | |
Proceeds from disposal of property and equipment | | | 54 | | | | — | | | | 2,236 | | | | — | |
Capital expenditures, less equipment purchased through capital leases | | | (6,113 | ) | | | (3,331 | ) | | | (23,010 | ) | | | (19,016 | ) |
| | | | | | | | | | | | |
Net cash from investing activities | | | (6,073 | ) | | | (3,331 | ) | | | (22,141 | ) | | | (19,016 | ) |
| | | | | | | | | | | | |
Cash flows from financing activities: | | | | | | | | | | | | | | | | |
Long-term debt principal payments | | | (42,212 | ) | | | (10,983 | ) | | | (578,131 | ) | | | (298,950 | ) |
Long-term debt borrowings | | | 34 | | | | 32 | | | | 351,410 | | | | 26,526 | |
Net borrowings (payments) under lines of credit | | | (2,952 | ) | | | (11,465 | ) | | | (18,023 | ) | | | 5,249 | |
Net change in book overdraft | | | (5,733 | ) | | | 30,011 | | | | (69,324 | ) | | | 30,011 | |
Capital lease obligations payments | | | (2,170 | ) | | | (3,478 | ) | | | (13,354 | ) | | | (14,643 | ) |
Short-term note borrowings | | | — | | | | — | | | | 2,035 | | | | 1,540 | |
Short-term note payments | | | (904 | ) | | | (49 | ) | | | (4,514 | ) | | | (1,580 | ) |
Proceeds from common stock offering, net of related expenses | | | (6 | ) | | | — | | | | 130,251 | | | | 204,286 | |
Proceeds from sale of common shares from employee stock purchase plan and exercise of stock options | | | 8,255 | | | | 1,615 | | | | 38,942 | | | | 26,624 | |
Tender and call premiums paid for debt extinguishment | | | (5 | ) | | | (613 | ) | | | (19,426 | ) | | | (19,688 | ) |
Payments of financing fees | | | 5 | | | | (87 | ) | | | (4,624 | ) | | | (2,887 | ) |
| | | | | | | | | | | | |
Net cash from financing activities | | | (45,688 | ) | | | 4,983 | | | | (184,758 | ) | | | (43,512 | ) |
| | | | | | | | | | | | |
Net increase (decrease) in cash and cash equivalents | | | 14,722 | | | | 10,026 | | | | (6,462 | ) | | | 32,992 | |
Cash and cash equivalents at beginning of period | | | 86,823 | | | | 59,241 | | | | 108,007 | | | | 36,275 | |
| | | | | | | | | | | | |
Cash and cash equivalents at end of period | | $ | 101,545 | | | $ | 69,267 | | | $ | 101,545 | | | $ | 69,267 | |
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URS CORPORATION AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS
(In thousands)
| | | | | | | | | | | | | | | | |
| | Three Months Ended | | | Twelve Months Ended | |
| | December 30, 2005 | | | October 31, 2004 | | | December 30, 2005 | | | October 31, 2004 | |
| | (unaudited) | | | | | | | | | |
Supplemental information: | | | | | | | | | | | | | | | | |
Interest paid | | $ | 4,363 | | | $ | 11,158 | | | $ | 29,974 | | | $ | 66,629 | |
| | | | | | | | | | | | |
Taxes paid | | $ | 20,137 | | | $ | 5,217 | | | $ | 48,422 | | | $ | 36,797 | |
| | | | | | | | | | | | |
Equipment acquired with capital lease obligations | | $ | 5,379 | | | $ | 1,720 | | | $ | 20,270 | | | $ | 11,098 | |
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URS CORPORATION AND SUBSIDIARIES
THREE MONTHS ENDED DECEMBER 30, 2005 REVENUES COMPARED TO
THREE MONTHS ENDED DECEMBER 31, 2004
REVENUES
(In millions)
| | | | | | | | |
| | Three Months Ended | |
| | December 30, 2005 | | | December 31, 2004 | |
| | (unaudited) | |
Federal: | | | | | | | | |
URS Division | | $ | 181 | | | $ | 102 | |
EG&G Division | | | 373 | | | | 324 | |
| | | | | | |
Federal | | | 554 | | | | 426 | |
State and Local | | | 241 | | | | 202 | |
Private | | | 184 | | | | 185 | |
International | | | 92 | | | | 92 | |
| | | | | | |
Total | | $ | 1,071 | | | $ | 905 | |
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URS CORPORATION AND SUBSIDIARIES
RECONCILIATION SCHEDULE OF NET INCOME AND EARNINGS PER SHARE BEFORE ACCOUNTING FOR CERTAIN
TRANSACTIONS
In our earnings release for the fiscal year ended December 30, 2005, we presented the earnings per share (“EPS”) impact of the charges related to the note redemptions during fiscal years 2005 and 2004. The table below presents our EPS excluding, for fiscal year 2005, the effects of (1) the additional four million shares resulting from the Company’s stock offering; (2) the $19 million charge, net of tax, related to the costs of the Company’s note redemptions; and (3) the $5 million, net of tax, in interest savings the Company realized during fiscal year 2005 as a result of the note redemptions, and for fiscal year 2004, the effects of (1) the additional eight million shares resulting from the Company’s stock offering; (2) the $16 million charge, net of tax, related to the costs of the Company’s note redemptions; and (3) the $8 million, net of tax, in interest savings the Company realized during fiscal year 2004 as a result of the note redemptions. Net income and EPS amounts, excluding the effects of these items are not computed in accordance with generally accepted accounting principles (“GAAP”). We are providing these non-GAAP measures to demonstrate the effects of the note redemptions, the effects of refinancing of debt in fiscal year 2005, the effects of our common stock offering and the related interest savings, and in addition, the effects of SFAS 123(R) for fiscal year 2005. We believe that certain of these non-GAAP measures are used by investors and analysts to measure, analyze and compare our business conditions and results of operations in a meaningful and consistent manner. Net income and EPS excluding the effects of these items should not be used as a substitute for net income and earnings per share prepared in conformity with GAAP, or as a GAAP measure of profitability.
Net income and EPS excluding the effects of the items mentioned above are calculated as follows:
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Fiscal Year Ended December 30, 2005
| | | | | | | | | | | | |
| | | | | | Weighted | | | | |
| | | | | | Average | | | | |
| | | | | | Shares | | | | |
| | Net Income | | | Outstanding | | | Earnings per Share | |
| | (In millions, except per share data) | |
Amount reported under GAAP | | $ | 82 | | | | 48 | | | $ | 1.72 | |
Effect of public stock offering | | | — | | | | 50 | | | | 0.08 | |
Effect of charges related to note redemption and refinancing of our credit facility | | | 19 | | | | 46 | | | | 0.42 | |
Effect of interest savings due to note redemptions | | | (5 | ) | | | 48 | | | | (0.10 | ) |
| | | | | | | | | | |
Amounts excluding the effects above | | $ | 96 | | | | | | | $ | 2.12 | |
Effect of stock option expense under SFAS 123(R) | | | (6 | ) | | | 48 | | | | (0.12 | ) |
| | | | | | | | | | |
Amounts excluding the effects above | | $ | 90 | | | | | | | $ | 2.00 | |
| | | | | | | | | | |
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Fiscal Year Ended October 31, 2004
| | | | | | | | | | | | |
| | | | | | Weighted | | | | |
| | | | | | Average | | | | |
| | | | | | Shares | | | | |
| | Net Income | | | Outstanding | | | Earnings per Share | |
| | (In millions, except per share data) | |
Amounts reported under GAAP | | $ | 61 | | | | 40 | | | $ | 1.53 | |
Effect of public stock offering | | | — | | | | 40 | | | | 0.21 | |
Effect of charges related to note redemptions | | | 16 | | | | 44 | | | | 0.36 | |
Effect of interest savings due to note redemptions | | | (8 | ) | | | 44 | | | | (0.18 | ) |
| | | | | | | | | | |
Amounts excluding the effects above | | $ | 69 | | | | | | | $ | 1.92 | |
Effect of stock option expense under SFAS 123(R) | | | (9 | ) | | | 40 | | | | (0.23 | ) |
| | | | | | | | | | |
Amounts excluding the effects above | | $ | 60 | | | | | | | $ | 1.69 | |
| | | | | | | | | | |
13