Exhibit 99.2
ChoicePoint Inc.
Operating Results by Quarter
(dollars in thousands)
| Q1 2005 | Q2 2005 | Q3 2005 | Q4 2005 | Total 2005 | Q1 2006 | Q2 2006 | Q3 2006 | Q4 2006 | Total 2006 | Q1 2007 | Q2 2007 | Q3 2007 | Q4 2007 | Total 2007 | Q1 2008 | |||||||||||||||||||||||||||||||||||||||||||||||||
Insurance Services Revenue | $ | 98,560 | $ | 100,963 | $ | 104,775 | $ | 98,555 | $ | 402,853 | $ | 112,326 | $ | 112,298 | $ | 116,118 | $ | 113,716 | $ | 454,458 | $ | 125,282 | $ | 125,185 | $ | 129,211 | $ | 125,909 | $ | 505,587 | $ | 142,686 | ||||||||||||||||||||||||||||||||
Screening and Authentication Services Revenue | 55,552 | 61,346 | 63,687 | 61,469 | 242,054 | 61,845 | 64,955 | 66,832 | 63,456 | 257,088 | 61,438 | 65,881 | 64,556 | 60,974 | 252,849 | 62,319 | ||||||||||||||||||||||||||||||||||||||||||||||||
Business Services Revenue | 45,062 | 42,738 | 43,998 | 37,832 | 169,630 | 37,298 | 36,862 | 35,513 | 35,742 | 145,415 | 35,697 | 36,159 | 36,456 | 33,857 | 142,169 | 35,887 | ||||||||||||||||||||||||||||||||||||||||||||||||
Marketing Services Revenue | 23,099 | 23,018 | 23,138 | 22,274 | 91,529 | 21,875 | 19,140 | 19,089 | 19,610 | 79,714 | 17,200 | 15,313 | 14,320 | 13,140 | 59,973 | 12,015 | ||||||||||||||||||||||||||||||||||||||||||||||||
Royalty Revenue | 797 | 526 | 954 | 121 | 2,398 | — | — | — | — | — | — | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||||||||||
Service Revenue (a) | $ | 223,070 | $ | 228,591 | $ | 236,552 | $ | 220,251 | $ | 908,464 | $ | 233,344 | $ | 233,255 | $ | 237,552 | $ | 232,524 | $ | 936,675 | $ | 239,617 | $ | 242,538 | $ | 244,543 | $ | 233,880 | $ | 960,578 | $ | 252,907 | ||||||||||||||||||||||||||||||||
Reimbursable Expenses per EITF 01-14 (e) | 6,543 | 6,623 | 7,479 | 7,411 | 28,056 | 6,726 | 5,084 | 4,934 | 6,134 | 22,878 | 4,859 | 5,412 | 5,640 | 5,466 | 21,377 | 3,539 | ||||||||||||||||||||||||||||||||||||||||||||||||
Total Revenue | $ | 229,613 | $ | 235,214 | $ | 244,031 | $ | 227,662 | $ | 936,520 | $ | 240,070 | $ | 238,339 | $ | 242,486 | $ | 238,658 | $ | 959,553 | $ | 244,476 | $ | 247,950 | $ | 250,183 | $ | 239,346 | $ | 981,955 | $ | 256,446 | ||||||||||||||||||||||||||||||||
Insurance Services Operating Income | $ | 54,204 | $ | 55,282 | $ | 57,906 | $ | 54,278 | $ | 221,670 | $ | 60,815 | $ | 60,039 | $ | 60,594 | $ | 58,395 | $ | 239,843 | $ | 65,179 | $ | 62,727 | $ | 65,032 | $ | 65,239 | $ | 258,177 | $ | 72,024 | ||||||||||||||||||||||||||||||||
Screening and Authentication Services Operating Income | 11,192 | 14,476 | 16,415 | 16,897 | 58,980 | 14,238 | 14,729 | 15,740 | 12,389 | 57,096 | 10,067 | 12,714 | 13,237 | 10,583 | 46,601 | 10,401 | ||||||||||||||||||||||||||||||||||||||||||||||||
Business Services Operating Income | 10,724 | 6,846 | 8,301 | 3,171 | 29,042 | 1,860 | 2,440 | 1,241 | 655 | 6,196 | 940 | 2,918 | 2,205 | 825 | 6,888 | 1,392 | ||||||||||||||||||||||||||||||||||||||||||||||||
Marketing Services Operating Income | 4,257 | 3,661 | 3,840 | 4,141 | 15,899 | 4,002 | 2,135 | 2,834 | 3,475 | 12,446 | 1,197 | 752 | 495 | (33 | ) | 2,411 | (1,091 | ) | ||||||||||||||||||||||||||||||||||||||||||||||
Royalty Operating Income | 770 | 325 | 506 | 121 | 1,722 | — | — | — | — | — | — | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||||||||||
Corporate & Shared Expenses | (18,499 | ) | (16,736 | ) | (19,236 | ) | (16,162 | ) | (70,633 | ) | (14,941 | ) | (14,463 | ) | (15,358 | ) | (19,240 | ) | (64,002 | ) | (16,585 | ) | (15,277 | ) | (17,894 | ) | (19,598 | ) | (69,354 | ) | (21,740 | ) | ||||||||||||||||||||||||||||||||
Stock-based compensation | (1,223 | ) | (1,447 | ) | (1,449 | ) | (1,471 | ) | (5,590 | ) | (4,975 | ) | (4,927 | ) | (5,990 | ) | (6,062 | ) | (21,954 | ) | (5,535 | ) | (5,528 | ) | (5,447 | ) | (4,721 | ) | (21,231 | ) | (5,253 | ) | ||||||||||||||||||||||||||||||||
Operating Income before other charges | $ | 61,425 | $ | 62,407 | $ | 66,283 | $ | 60,975 | $ | 251,090 | $ | 60,999 | $ | 59,953 | $ | 59,061 | $ | 49,612 | $ | 229,625 | $ | 55,263 | $ | 58,306 | $ | 57,628 | $ | 52,295 | $ | 223,492 | $ | 55,733 | ||||||||||||||||||||||||||||||||
Other charges (b): | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Accelerated depreciation | — | — | — | — | — | (5,463 | ) | — | — | — | (5,463 | ) | — | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||||||||
Other operating charges (c) | (5,412 | ) | (6,040 | ) | (4,006 | ) | (13,315 | ) | (28,773 | ) | (5,987 | ) | (2,740 | ) | (116,054 | ) | 7,209 | (117,572 | ) | (1,157 | ) | (278 | ) | (2,499 | ) | (87,764 | ) | (91,698 | ) | (4,069 | ) | |||||||||||||||||||||||||||||||||
Operating Income (Loss) - Continuing Operations | $ | 56,013 | $ | 56,367 | $ | 62,277 | $ | 47,660 | $ | 222,317 | $ | 49,549 | $ | 57,213 | $ | (56,993 | ) | $ | 56,821 | $ | 106,590 | $ | 54,106 | $ | 58,028 | $ | 55,129 | $ | (35,469 | ) | $ | 131,794 | $ | 51,664 | ||||||||||||||||||||||||||||||
Operating Income (Loss) - Discontinued Operations | $ | 5,075 | $ | 2,484 | $ | 2,700 | $ | 4,571 | $ | 14,830 | $ | 3,503 | $ | 3,270 | $ | 4,860 | $ | 7,835 | $ | 19,468 | $ | 2,615 | $ | 2,276 | $ | 3,013 | $ | 712 | $ | 8,616 | $ | (4,632 | ) | |||||||||||||||||||||||||||||||
Impairment Loss on Assets Held for Sale - Discontinued Operations | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | $ | (58,000 | ) | $ | (9,504 | ) | $ | (67,504 | ) | $ | (146 | ) | $ | (688 | ) | $ | (49,183 | ) | $ | (8,901 | ) | $ | (58,918 | ) | $ | (1,231 | ) | |||||||||||||||||||||||
Gain (Loss) on sale of Discontinued Operations | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | $ | (4,941 | ) | $ | (85 | ) | $ | (5,026 | ) | $ | (382 | ) | $ | 138 | $ | (250 | ) | $ | 1,287 | $ | 793 | $ | 60 | |||||||||||||||||||||||||||
Operating Margins - Continuing Operations | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Insurance Services | 55.0 | % | 54.8 | % | 55.3 | % | 55.1 | % | 55.0 | % | 54.1 | % | 53.5 | % | 52.2 | % | 51.4 | % | 52.8 | % | 52.0 | % | 50.1 | % | 50.3 | % | 51.8 | % | 51.1 | % | 50.5 | % | ||||||||||||||||||||||||||||||||
Screening and Authentication Services | 20.1 | % | 23.6 | % | 25.8 | % | 27.5 | % | 24.4 | % | 23.0 | % | 22.7 | % | 23.6 | % | 19.5 | % | 22.2 | % | 16.4 | % | 19.3 | % | 20.5 | % | 17.4 | % | 18.4 | % | 16.7 | % | ||||||||||||||||||||||||||||||||
Business Services | 23.8 | % | 16.0 | % | 18.9 | % | 8.4 | % | 17.1 | % | 5.0 | % | 6.6 | % | 3.5 | % | 1.8 | % | 4.3 | % | 2.6 | % | 8.1 | % | 6.0 | % | 2.4 | % | 4.8 | % | 3.9 | % | ||||||||||||||||||||||||||||||||
Marketing Services | 18.4 | % | 15.9 | % | 16.6 | % | 18.6 | % | 17.4 | % | 18.3 | % | 11.2 | % | 14.8 | % | 17.7 | % | 15.6 | % | 7.0 | % | 4.9 | % | 3.5 | % | -0.3 | % | 4.0 | % | -9.1 | % | ||||||||||||||||||||||||||||||||
ChoicePoint excluding other charges as a percentage of service revenue (b) (c) | 27.5 | % | 27.3 | % | 28.0 | % | 27.7 | % | 27.6 | % | 26.1 | % | 25.7 | % | 24.9 | % | 21.3 | % | 24.5 | % | 23.1 | % | 24.0 | % | 23.6 | % | 22.4 | % | 23.3 | % | 22.0 | % | ||||||||||||||||||||||||||||||||
Operating income excluding other charges as a percentage of total revenue - continuing operations (b) | 26.8 | % | 26.5 | % | 27.2 | % | 26.8 | % | 26.8 | % | 25.4 | % | 25.2 | % | 24.4 | % | 20.8 | % | 23.9 | % | 22.6 | % | 23.5 | % | 23.0 | % | 21.8 | % | 22.8 | % | 21.7 | % | ||||||||||||||||||||||||||||||||
Internal Growth Rates (d) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Insurance Services | 11.8 | % | 12.7 | % | 12.4 | % | 13.1 | % | 12.6 | % | 12.8 | % | 10.1 | % | 8.2 | % | 11.6 | % | 10.6 | % | 8.0 | % | 9.3 | % | 11.0 | % | 10.7 | % | 9.7 | % | 12.2 | % | ||||||||||||||||||||||||||||||||
Screening and Authentication Services | 12.2 | % | 11.5 | % | 12.5 | % | 9.1 | % | 11.3 | % | 11.1 | % | 5.0 | % | 3.8 | % | 2.3 | % | 5.4 | % | -1.4 | % | 1.2 | % | -3.4 | % | -3.9 | % | -1.9 | % | 1.4 | % | ||||||||||||||||||||||||||||||||
Business Services | 3.1 | % | -3.2 | % | 3.5 | % | -10.6 | % | -2.0 | % | -17.2 | % | -13.8 | % | -19.3 | % | -5.5 | % | -14.3 | % | -4.3 | % | -1.9 | % | -4.1 | % | -11.0 | % | -5.3 | % | -5.8 | % | ||||||||||||||||||||||||||||||||
Marketing Services | 1.3 | % | -0.9 | % | -1.9 | % | -6.3 | % | -2.0 | % | -5.3 | % | -16.8 | % | -17.5 | % | -12.0 | % | -12.9 | % | -21.4 | % | -20.0 | % | -25.0 | % | -33.0 | % | -24.8 | % | -30.1 | % | ||||||||||||||||||||||||||||||||
Total ChoicePoint | 8.8 | % | 7.3 | % | 8.9 | % | 4.8 | % | 7.5 | % | 4.0 | % | 1.3 | % | -1.0 | % | 3.6 | % | 1.9 | % | 0.8 | % | 2.9 | % | 1.8 | % | -0.3 | % | 1.3 | % | 3.7 | % | ||||||||||||||||||||||||||||||||
| (a) | Service revenue represents revenue from continuing business lines and is used by management to assess and manage its on-going businesses and to determine operational incentive awards. |
| (b) | Management excludes these charges in its assessments of operating results. |
| (c) | Other operating charges include specific expenses related to the fraudulent data access, asset impairment, lease abandonment, merger-related costs, unusual items, realignment charges, gain (loss) on sale of business, and other charges. |
| (d) | Internal revenue growth is the revenue growth from comparable business units for the same period in the prior year and excludes revenue from reimbursable expenses, acquisitions, divested and discontinued product lines and discontinued operations. This measure is used by management to analyze the performance of the business segments and as a criteria component for incentive compensation awards. |
| (e) | Reimbursable expenses represent certain reimbursed out-of-pocket expenses that are presented on a gross basis in accordance with EITF 01-14. As these expenses are fully reimbursed, without mark-up, by our clients and in a majority of cases prepaid by the customers, there is no impact on operating income, net income, earnings per share, cash flows or the balance sheet; therefore, we have excluded the impact of these expenses in the calculation of operating margins, service revenue and internal growth. |
ChoicePoint Inc.
Operating Results by Quarter
(dollars in thousands except per share amounts)
| Q1 2006 | Q2 2006 | Q3 2006 | Q4 2006 | Fiscal Year 2006 | Q1 2007 | Q2 2007 | Q3 2007 | Q4 2007 | Fiscal Year 2007 | Q1 2008 | ||||||||||||||||||||||||||||||||||
Net income | $ | 30,610 | $ | 34,861 | $ | (72,216 | ) | $ | 23,667 | $ | 16,922 | $ | 30,922 | $ | 32,570 | $ | 1,251 | $ | (32,321 | ) | $ | 32,424 | $ | 22,985 | ||||||||||||||||||||
EPS - Diluted | $ | 0.34 | $ | 0.40 | $ | (0.89 | ) | $ | 0.30 | $ | 0.20 | $ | 0.40 | $ | 0.43 | $ | 0.02 | $ | (0.47 | ) | $ | 0.44 | $ | 0.34 | ||||||||||||||||||||
Less: | ||||||||||||||||||||||||||||||||||||||||||||
Income (loss) from discontinued operations, net of tax | 2,046 | 2,561 | 3,868 | (2,015 | ) | 6,460 | 1,809 | 1,729 | 2,691 | (931 | ) | 5,298 | (2,730 | ) | ||||||||||||||||||||||||||||||
Impairment loss on assets held for sale, net of tax | (34,918 | ) | (6,895 | ) | (41,813 | ) | (90 | ) | (424 | ) | (30,348 | ) | (5,492 | ) | (36,354 | ) | (726 | ) | ||||||||||||||||||||||||||
Gain (loss) on sale of discontinued operations, net of tax | — | — | (3,088 | ) | (53 | ) | (3,141 | ) | (365 | ) | 129 | (155 | ) | 882 | 491 | 37 | ||||||||||||||||||||||||||||
Income from continuing operations | $ | 28,564 | $ | 32,300 | $ | (38,078 | ) | $ | 32,630 | $ | 55,416 | $ | 29,568 | $ | 31,136 | $ | 29,063 | $ | (26,780 | ) | $ | 62,989 | $ | 26,404 | ||||||||||||||||||||
EPS from continuing operations | $ | 0.32 | $ | 0.37 | $ | (0.47 | ) | $ | 0.41 | $ | 0.65 | $ | 0.38 | $ | 0.41 | $ | 0.39 | $ | (0.39 | ) | $ | 0.85 | $ | 0.39 | ||||||||||||||||||||
Add back other charges (a): | ||||||||||||||||||||||||||||||||||||||||||||
Accelerated depreciation expense | 5,463 | — | — | — | 5,463 | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||
Other operating charges (c) | 5,987 | 2,740 | 116,054 | (7,209 | ) | 117,572 | 1,157 | 278 | 2,499 | 87,764 | 91,698 | 4,069 | ||||||||||||||||||||||||||||||||
Tax provision (benefit) related to other charges | (4,541 | ) | (1,109 | ) | (44,416 | ) | 2,575 | (47,491 | ) | (441 | ) | (108 | ) | (1,000 | ) | (33,297 | ) | (34,846 | ) | (1,394 | ) | |||||||||||||||||||||||
Income from continuing operations excluding other charges (a)(c) | $ | 35,473 | $ | 33,931 | $ | 33,560 | $ | 27,996 | $ | 130,960 | $ | 30,284 | $ | 31,306 | $ | 30,562 | $ | 27,687 | $ | 119,841 | $ | 29,079 | ||||||||||||||||||||||
EPS from continuing operations excluding other charges (a)(c) | $ | 0.40 | $ | 0.39 | $ | 0.40 | (b) | $ | 0.35 | $ | 1.54 | $ | 0.39 | $ | 0.41 | $ | 0.41 | $ | 0.39 | (b) | $ | 1.61 | $ | 0.43 | ||||||||||||||||||||
Weighted Avg Shares - diluted | 88,804 | 87,736 | 81,551 | 79,782 | 84,986 | 77,362 | 75,852 | 73,829 | 68,825 | 74,423 | 68,200 | |||||||||||||||||||||||||||||||||
| (a) | The Company has presented this information with and without these items because they represent costs that management excludes in its assessment of operating results of the business. |
| (b) | EPS from continuing operations excluding other charges for the fourth quarter of 2007 and the third quarter of 2006 is calculated based upon weighted average diluted shares of 70,263 and 83,533 respectively. |
The dilutive effect of stock options and other share-based awards is included in the calculation of EPS from continuing operations excluding other charges because such effect is dilutive.
| (c) | Other operating charges include specific expenses related to the fraudulent data access, lease abandonments, merger-related costs, unusual items, realignment charges, and other charges as follows: |
| Q1 2006 | Q2 2006 | Q3 2006 | Q4 2006 | Fiscal Year 2006 | Q1 2007 | Q2 2007 | Q3 2007 | Q4 2007 | Fiscal Year 2007 | Q1 2008 | ||||||||||||||||||||||||||||
Asset impairments - Marketing Services segment | $ | — | $ | — | $ | 110,000 | $ | (10,600 | ) | $ | 99,400 | $ | — | $ | — | $ | — | $ | 85,983 | $ | 85,983 | $ | — | |||||||||||||||
Asset impairments | 3,940 | 1,497 | 4,721 | 562 | 10,720 | 279 | 26 | 199 | 353 | 857 | 486 | |||||||||||||||||||||||||||
Transaction-related expenses | — | — | — | — | — | — | — | — | — | — | 2,044 | |||||||||||||||||||||||||||
Nonmerger severance | 1,115 | 658 | 410 | — | 2,183 | 174 | 1,614 | 1,512 | 1,103 | 4,403 | 1,382 | |||||||||||||||||||||||||||
Lease abandonments | 150 | (386 | ) | — | 1,996 | 1,760 | 137 | 139 | 957 | 144 | 1,377 | — | ||||||||||||||||||||||||||
Expenses related to fraudulent data access | 782 | 971 | 923 | 833 | 3,509 | 567 | (1,501 | ) | 112 | 177 | (645 | ) | 99 | |||||||||||||||||||||||||
Other, net | — | — | — | — | — | — | — | (281 | ) | 4 | (277 | ) | 58 | |||||||||||||||||||||||||
Total other operating charges | $ | 5,987 | $ | 2,740 | $ | 116,054 | $ | (7,209 | ) | $ | 117,572 | $ | 1,157 | $ | 278 | $ | 2,499 | $ | 87,764 | $ | 91,698 | $ | 4,069 | |||||||||||||||
ChoicePoint Inc.
Cash Flow and Balance Sheet Highlights
(dollars in thousands)
Reconciliation of net cash provided by operating activities to net free cash flow
| Q1 2006 | Q2 2006 | Q3 2006 | Q4 2006 | Fiscal Year 2006 | Q1 2007 | Q2 2007 | Q3 2007 | Q4 2007 | Fiscal Year 2007 | Q1 2008 | ||||||||||||||||||||||||||||||||||
Net cash provided by operating activities - continuing operations | $ | 36,442 | $ | 26,624 | $ | 92,783 | $ | 44,779 | $ | 200,628 | $ | 37,770 | $ | 71,899 | $ | 62,612 | $ | 46,434 | $ | 218,715 | $ | 43,879 | ||||||||||||||||||||||
Additions to property and equipment | 5,319 | 5,923 | 3,354 | 8,586 | 23,182 | 4,226 | 3,268 | 5,520 | 3,672 | 16,686 | 4,865 | |||||||||||||||||||||||||||||||||
Additions to other assets, net | 8,544 | 10,595 | 7,718 | 1,927 | 28,784 | 6,308 | 8,229 | 6,750 | 8,773 | 30,060 | 10,023 | |||||||||||||||||||||||||||||||||
Total capital expenditures | 13,863 | 16,518 | 11,072 | 10,513 | 51,966 | 10,534 | 11,497 | 12,270 | 12,445 | 46,746 | 14,888 | |||||||||||||||||||||||||||||||||
Net free cash flow - continuing operations | $ | 22,579 | $ | 10,106 | $ | 81,711 | $ | 34,266 | $ | 148,662 | $ | 27,236 | $ | 60,402 | $ | 50,342 | $ | 33,989 | $ | 171,969 | $ | 28,991 | ||||||||||||||||||||||
Depreciation and Amortization | Q1 2006 | Q2 2006 | Q3 2006 | Q4 2006 | Fiscal Year 2006 | Q1 2007 | Q2 2007 | Q3 2007 | Q4 2007 | Fiscal Year 2007 | Q1 2008 | |||||||||||||||||||||||||||||||||
Insurance Services | $ | 2,998 | $ | 3,072 | $ | 4,023 | $ | 4,203 | $ | 14,296 | $ | 4,154 | $ | 4,657 | $ | 4,502 | $ | 4,545 | $ | 17,858 | $ | 4,652 | ||||||||||||||||||||||
Screening and Authentication Services | 3,106 | 3,231 | 3,373 | 3,592 | 13,302 | 3,730 | 3,979 | 3,938 | 3,819 | 15,466 | 3,947 | |||||||||||||||||||||||||||||||||
Business Services | 5,168 | 4,580 | 4,592 | 4,903 | 19,243 | 4,533 | 4,328 | 4,223 | 3,596 | 16,680 | 3,150 | |||||||||||||||||||||||||||||||||
Marketing Services | 1,608 | 1,695 | 1,658 | 1,629 | 6,590 | 1,340 | 1,257 | 1,254 | 1,276 | 5,127 | 1,077 | |||||||||||||||||||||||||||||||||
Unallocated & Other | 2,508 | 2,454 | 2,401 | 2,293 | 9,656 | 2,343 | 2,126 | 2,218 | 1,926 | 8,613 | 1,998 | |||||||||||||||||||||||||||||||||
Accelerated Depreciation | 5,463 | — | — | — | 5,463 | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||
Total Continuing Operations | $ | 20,851 | $ | 15,032 | $ | 16,047 | $ | 16,620 | $ | 68,550 | $ | 16,100 | $ | 16,347 | $ | 16,135 | $ | 15,162 | $ | 63,744 | $ | 14,824 | ||||||||||||||||||||||
| Calculation of Net Debt and Net Debt to Total Book Capital Ratio | ||||||||||||||||||||||||||||||||||||||||||||
| March 31, 2006 | June 30, 2006 | September 30, 2006 | December 31, 2006 | March 31, 2007 | June 30, 2007 | September 30, 2007 | December 31, 2007 | March 31, 2008 | ||||||||||||||||||||||||||||||||||||
Short-term debt and current maturities of long-term debt | $ | 100,010 | $ | 101,810 | $ | 75,011 | $ | 100,011 | $ | 110,011 | $ | 90,011 | $ | — | $ | 80,000 | $ | 11,342 | ||||||||||||||||||||||||||
Long-term debt, less current maturities | 105,032 | 95,031 | 315,030 | 315,028 | 350,025 | 335,019 | 515,000 | 530,000 | 562,500 | |||||||||||||||||||||||||||||||||||
Total Debt | 205,042 | 196,841 | 390,041 | 415,039 | 460,036 | 425,030 | 515,000 | 610,000 | 573,842 | |||||||||||||||||||||||||||||||||||
Cash and cash equivalents | (8,499 | ) | (5,337 | ) | (37,229 | ) | (26,612 | ) | (39,242 | ) | (27,544 | ) | (37,487 | ) | (20,189 | ) | (31,956 | ) | ||||||||||||||||||||||||||
Net Debt | 196,543 | 191,504 | 352,812 | 388,427 | 420,794 | 397,486 | 477,513 | 589,811 | 541,886 | |||||||||||||||||||||||||||||||||||
Net Debt | 196,543 | 191,504 | 352,812 | 388,427 | 420,794 | 397,486 | 477,513 | 589,811 | 541,886 | |||||||||||||||||||||||||||||||||||
Book Value of Shareholders’ Equity | 968,875 | 1,015,991 | 721,944 | 663,647 | 614,409 | 618,884 | 490,320 | 309,922 | 351,235 | |||||||||||||||||||||||||||||||||||
Total Capitalization | 1,165,418 | 1,207,495 | 1,074,756 | 1,052,074 | 1,035,203 | 1,016,370 | 967,833 | 899,733 | 893,121 | |||||||||||||||||||||||||||||||||||
Net debt to total book capital ratio | 16.9 | % | 15.9 | % | 32.8 | % | 36.9 | % | 40.6 | % | 39.1 | % | 49.3 | % | 65.6 | % | 60.7 | % | ||||||||||||||||||||||||||
| Calculation of EBITDA and Ratio of Net Debt to EBITDA Ratio (d) | ||||||||||||||||||||||||||||||||||||||||||||
| Q1 2006 | Q2 2006 | Q3 2006 | Q4 2006 | Fiscal Year 2006 | Q1 2007 | Q2 2007 | Q3 2007 | Q4 2007 | Fiscal Year 2007 | Q1 2008 | ||||||||||||||||||||||||||||||||||
Net Income - as reported | $ | 30,610 | $ | 34,861 | $ | (72,216 | ) | $ | 23,667 | $ | 16,922 | $ | 30,922 | $ | 32,570 | $ | 1,251 | $ | (32,321 | ) | $ | 32,424 | $ | 22,985 | ||||||||||||||||||||
Loss from discontinued operations, net of taxes | 2,046 | 2,561 | (34,138 | ) | (8,963 | ) | (38,494 | ) | 1,354 | 1,434 | (27,812 | ) | (5,541 | ) | (30,565 | ) | (3,419 | ) | ||||||||||||||||||||||||||
Income from Continuing Operations | 28,564 | 32,300 | (38,078 | ) | 32,630 | 55,416 | 29,568 | 31,136 | 29,063 | (26,780 | ) | 62,989 | 26,404 | |||||||||||||||||||||||||||||||
Provision for income taxes | 18,783 | 21,951 | (23,609 | ) | 18,129 | 35,254 | 18,222 | 20,529 | 19,375 | (16,354 | ) | 41,772 | 17,591 | |||||||||||||||||||||||||||||||
Interest expense | 2,205 | 2,960 | 4,693 | 6,062 | 15,920 | 6,316 | 6,361 | 6,690 | 7,665 | 27,032 | 7,669 | |||||||||||||||||||||||||||||||||
Operating Income (Loss) - Continuing Operations | 49,552 | 57,211 | (56,994 | ) | 56,821 | 106,590 | 54,106 | 58,026 | 55,128 | (35,469 | ) | 131,793 | 51,664 | |||||||||||||||||||||||||||||||
Add back: Other charges (a): | ||||||||||||||||||||||||||||||||||||||||||||
Other operating charges (b) | 5,987 | 2,740 | 116,054 | (7,209 | ) | 117,572 | 1,157 | 278 | 2,499 | 87,764 | 91,698 | 4,069 | ||||||||||||||||||||||||||||||||
Operating Income (Loss) - Continuing Operations - As Adjusted | 55,539 | 59,951 | 59,060 | 49,612 | 224,162 | 55,263 | 58,304 | 57,627 | 52,295 | 223,491 | 55,733 | |||||||||||||||||||||||||||||||||
Depreciation and amortization | 20,851 | 15,032 | 16,047 | 16,620 | 68,550 | 16,100 | 16,347 | 16,135 | 15,162 | 63,744 | 14,824 | |||||||||||||||||||||||||||||||||
Stock-based compensation | 4,975 | 4,927 | 5,990 | 6,062 | 21,954 | 5,535 | 5,528 | 5,447 | 4,721 | 21,231 | 5,253 | |||||||||||||||||||||||||||||||||
Earnings before Interest, Taxes, Depreciation & Amortization (EBITDA) | $ | 81,365 | $ | 79,910 | $ | 81,097 | $ | 72,294 | $ | 314,666 | $ | 76,898 | $ | 80,179 | $ | 79,209 | $ | 72,178 | $ | 308,466 | $ | 75,810 | ||||||||||||||||||||||
EBITDA - Trailing 12 Months | $ | 314,666 | $ | 310,199 | $ | 310,469 | $ | 308,581 | $ | 308,466 | $ | 307,377 | ||||||||||||||||||||||||||||||||
Net Debt to EBITDA Ratio (c) | 1.23 | 1.36 | 1.28 | 1.55 | 1.91 | 1.76 | ||||||||||||||||||||||||||||||||||||||
| (a) | Management excludes these charges in its assessments of operating results. |
| (b) | Other operating charges include specific expenses related to the fraudulent data access, asset impairment, lease abandonment, merger-related costs, unusual items, realignment charges, gain (loss) on sale of business, and other charges. |
| (c) | To supplement the Company’s balance sheet information presented on a GAAP basis, the Company also uses “net debt to EBITDA ratio”. Net debt to EBITDA ratio is a non-GAAP measure, which may be determined or calculated differently by other companies, and is obtained by dividing the Company’s net debt as of a specific date by its EBITDA for the specified period ending on such date. Net debt is calculated by subtracting cash and cash equivalents from total debt. The Company defines EBITDA as net income from continuing operations before taxes, interest, other operating charges, depreciation and amortization, including amortization associated with stock-based compensation. |
The Company’s net debt to EBITDA ratio is required to be calculated by the Company’s loan covenants and Management uses it to evaluate the Company’s ability to repay or refinance its debt obligations. Management believes that net debt is a useful measure because it represents the amount of debt obligations that are not covered by available cash and temporary investments. Management believes that EBITDA is a useful measure in this context because it assists management in comparing the Company’s performance on a consistent basis without regard to depreciation and amortization, which are non-cash in nature and can vary significantly depending upon accounting methods or non-operating factors such as historical cost.
The Company’s net debt to EBITDA ratio should not be considered in isolation or as a substitute for a ratio of GAAP total debt to net income. The Company strongly encourages investors to review its financial statements and publicly-filed reports in their entirety and not to rely on any single financial measure. Other companies may use different methodologies for calculating their non-GAAP financial measures and, accordingly, the Company’s non-GAAP financial measures may not be comparable to those measures.