Exhibit 99
CERTEGY INC.
CONSOLIDATED STATEMENTS OF INCOME
(In thousands, except per share amounts)
(Unaudited)
| | Three Months Ended September 30, 2002 | | Nine Months Ended September 30, 2002 | |
| | | | | |
Revenues | | $ | 254,506 | | $ | 744,717 | |
| | | | | |
Operating expenses: | | | | | |
Costs of services | | 179,132 | | 547,176 | |
Selling, general and administrative | | 28,718 | | 84,786 | |
Asset impairment and other charges(1) | | 9,365 | | 9,365 | |
| | 217,215 | | 641,327 | |
| | | | | |
Operating income | | 37,291 | | 103,390 | |
Other income, net | | 151 | | 922 | |
Interest expense | | (1,619 | ) | (5,345 | ) |
Income before income taxes | | 35,823 | | 98,967 | |
Provision for income taxes | | (13,840 | ) | (37,993 | ) |
| | | | | |
Net income | | $ | 21,983 | | $ | 60,974 | |
Basic earnings per share | | $ | 0.32 | | $ | 0.88 | |
Average shares outstanding | | 68,850 | | 68,913 | |
Diluted earnings per share | | $ | 0.32 | | $ | 0.87 | |
Average shares outstanding | | 69,451 | | 69,830 | |
Revenues and operating income of the Company’s reportable segments for the three months and nine months ended September 30, 2002 are as follows:
| | Three Months Ended September 30, 2002 | | Nine Months Ended September 30, 2002 | |
Revenues: | | | | | |
Card Services | | $ | 167,609 | | $ | 497,340 | |
Check Services | | 86,897 | | 247,377 | |
| | $ | 254,506 | | $ | 744,717 | |
Operating income: | | | | | |
Card Services | | $ | 38,876 | | $ | 94,666 | |
Check Services | | 12,085 | | 30,647 | |
| | 50,961 | | 125,313 | |
General corporate expense | | (4,305 | ) | (12,558 | ) |
Asset impairment and other charges(1) | | (9,365 | ) | (9,365 | ) |
| | $ | 37,291 | | $ | 103,390 | |
(1) Asset impairment and other charges of $9.4 million ($0.09 per diluted share for the three months ended September 30, 2002) include $5.2 million of asset impairment charges, a $4.0 million charge for the settlement of a class action lawsuit, net of insurance proceeds, and a $0.2 million severance charge.