Exhibit 99.1
LIFEPOINT HOSPITALS, INC.
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
Dollars in millions, except per share amounts
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| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Nine Months | |
| | Three Months Ended | | | Year Ended | | | Three Months Ended | | | Ended | |
| | March 31, | | | June 30, | | | September 30, | | | December 31, | | | December 31, | | | March 31, | | | June 30, | | | September 30, | | | September 30, | |
| | 2007 | | | 2007 | | | 2007 | | | 2007 | | | 2007 | | | 2008 | | | 2008 | | | 2008 | | | 2008 | |
Revenues | | $ | 645.8 | | | $ | 638.2 | | | $ | 641.0 | | | $ | 643.4 | | | $ | 2,568.4 | | | $ | 685.1 | | | $ | 665.7 | | | $ | 675.1 | | | $ | 2,025.9 | |
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Salaries and benefits | | | 249.8 | | | | 249.9 | | | | 252.8 | | | | 253.6 | | | | 1,006.1 | | | | 268.0 | | | | 263.9 | | | | 265.6 | | | | 797.5 | |
Supplies | | | 89.7 | | | | 87.3 | | | | 86.4 | | | | 88.8 | | | | 352.2 | | | | 93.3 | | | | 93.0 | | | | 93.0 | | | | 279.3 | |
Other operating expenses | | | 111.0 | | | | 118.8 | | | | 116.3 | | | | 117.9 | | | | 464.0 | | | | 121.0 | | | | 122.9 | | | | 128.3 | | | | 372.2 | |
Provision for doubtful accounts | | | 71.5 | | | | 79.5 | | | | 76.9 | | | | 79.1 | | | | 307.0 | | | | 80.9 | | | | 74.9 | | | | 78.9 | | | | 234.7 | |
Depreciation and amortization | | | 31.8 | | | | 33.8 | | | | 31.6 | | | | 32.2 | | | | 129.4 | | | | 32.1 | | | | 33.5 | | | | 32.2 | | | | 97.8 | |
Interest expense, net | | | 26.2 | | | | 25.0 | | | | 21.5 | | | | 21.8 | | | | 94.5 | | | | 22.1 | | | | 22.0 | | | | 22.1 | | | | 66.2 | |
Impairment of long-lived assets | | | — | | | | — | | | | — | | | | — | | | | — | | | | — | | | | 0.3 | | | | 0.9 | | | | 1.2 | |
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| | | 580.0 | | | | 594.3 | | | | 585.5 | | | | 593.4 | | | | 2,353.2 | | | | 617.4 | | | | 610.5 | | | | 621.0 | | | | 1,848.9 | |
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Income from continuing operations before minority interests and income taxes | | | 65.8 | | | | 43.9 | | | | 55.5 | | | | 50.0 | | | | 215.2 | | | | 67.7 | | | | 55.2 | | | | 54.1 | | | | 177.0 | |
Minority interests in earnings of consolidated entities | | | 0.3 | | | | 0.5 | | | | 0.7 | | | | 0.2 | | | | 1.7 | | | | 0.5 | | | | 0.6 | | | | 0.5 | | | | 1.6 | |
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Income from continuing operations before income taxes | | | 65.5 | | | | 43.4 | | | | 54.8 | | | | 49.8 | | | | 213.5 | | | | 67.2 | | | | 54.6 | | | | 53.6 | | | | 175.4 | |
Provision for income taxes | | | 26.6 | | | | 18.4 | | | | 22.7 | | | | 18.1 | | | | 85.8 | | | | 25.9 | | | | 22.4 | | | | 22.1 | | | | 70.4 | |
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Income from continuing operations | | | 38.9 | | | | 25.0 | | | | 32.1 | | | | 31.7 | | | | 127.7 | | | | 41.3 | | | | 32.2 | | | | 31.5 | | | | 105.0 | |
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Discontinued operations, net of income taxes: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Loss from discontinued operations | | | (1.1 | ) | | | (3.0 | ) | | | (3.8 | ) | | | (0.7 | ) | | | (8.6 | ) | | | (1.8 | ) | | | (1.4 | ) | | | (3.3 | ) | | | (6.5 | ) |
Impairment (charge) adjustment | | | (7.9 | ) | | | (8.5 | ) | | | 0.3 | | | | (0.4 | ) | | | (16.5 | ) | | | 2.3 | | | | — | | | | (16.8 | ) | | | (14.5 | ) |
Loss on sale of hospitals | | | (0.1 | ) | | | (0.1 | ) | | | (0.4 | ) | | | — | | | | (0.6 | ) | | | — | | | | (0.3 | ) | | | — | | | | (0.3 | ) |
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(Loss) income from discontinued operations | | | (9.1 | ) | | | (11.6 | ) | | | (3.9 | ) | | | (1.1 | ) | | | (25.7 | ) | | | 0.5 | | | | (1.7 | ) | | | (20.1 | ) | | | (21.3 | ) |
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Net income | | $ | 29.8 | | | $ | 13.4 | | | $ | 28.2 | | | $ | 30.6 | | | $ | 102.0 | | | $ | 41.8 | | | $ | 30.5 | | | $ | 11.4 | | | $ | 83.7 | |
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Basic earnings (loss) per share: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Continuing operations | | $ | 0.70 | | | $ | 0.44 | | | $ | 0.57 | | | $ | 0.56 | | | $ | 2.27 | | | $ | 0.76 | | | $ | 0.62 | | | $ | 0.61 | | | $ | 1.99 | |
Discontinued operations | | | (0.17 | ) | | | (0.20 | ) | | | (0.07 | ) | | | (0.02 | ) | | | (0.45 | ) | | | 0.01 | | | | (0.04 | ) | | | (0.39 | ) | | | (0.40 | ) |
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Net income | | $ | 0.53 | | | $ | 0.24 | | | $ | 0.50 | | | $ | 0.54 | | | $ | 1.82 | | | $ | 0.77 | | | $ | 0.58 | | | $ | 0.22 | | | $ | 1.59 | |
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Diluted earnings (loss) per share: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Continuing operations | | $ | 0.69 | | | $ | 0.43 | | | $ | 0.56 | | | $ | 0.55 | | | $ | 2.23 | | | $ | 0.75 | | | $ | 0.60 | | | $ | 0.60 | | | $ | 1.96 | |
Discontinued operations | | | (0.16 | ) | | | (0.20 | ) | | | (0.07 | ) | | | (0.02 | ) | | | (0.44 | ) | | | 0.01 | | | | (0.03 | ) | | | (0.38 | ) | | | (0.40 | ) |
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Net income | | $ | 0.53 | | | $ | 0.23 | | | $ | 0.49 | | | $ | 0.53 | | | $ | 1.79 | | | $ | 0.76 | | | $ | 0.57 | | | $ | 0.22 | | | $ | 1.56 | |
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|
Basic weighted average number of shares | | | 55.8 | | | | 56.1 | | | | 56.4 | | | | 56.3 | | | | 56.2 | | | | 54.1 | | | | 52.2 | | | | 51.7 | | | | 52.7 | |
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Diluted weighted average number of shares and equivalents | | | 56.8 | | | | 57.2 | | | | 57.3 | | | | 57.3 | | | | 57.2 | | | | 55.2 | | | | 53.2 | | | | 52.8 | | | | 53.7 | |
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LIFEPOINT HOSPITALS, INC.
UNAUDITED EARNINGS (LOSS) PER SHARE CALCULATION
Dollars in millions, except per share amounts
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| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Nine Months | |
| | Three Months Ended | | | Year Ended | | | Three Months Ended | | | Ended | |
| | March 31, | | | June 30, | | | September 30, | | | December 31, | | | December 31, | | | March 31, | | | June 30, | | | September 30, | | | September 30, | |
| | 2007 | | | 2007 | | | 2007 | | | 2007 | | | 2007 | | | 2008 | | | 2008 | | | 2008 | | | 2008 | |
Income from continuing operations | | $ | 38.9 | | | $ | 25.0 | | | $ | 32.1 | | | $ | 31.7 | | | $ | 127.7 | | | $ | 41.3 | | | $ | 32.2 | | | $ | 31.5 | | | $ | 105.0 | |
(Loss) income from discontinued operations | | | (9.1 | ) | | | (11.6 | ) | | | (3.9 | ) | | | (1.1 | ) | | | (25.7 | ) | | | 0.5 | | | | (1.7 | ) | | | (20.1 | ) | | | (21.3 | ) |
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| | $ | 29.8 | | | $ | 13.4 | | | $ | 28.2 | | | $ | 30.6 | | | $ | 102.0 | | | $ | 41.8 | | | $ | 30.5 | | | $ | 11.4 | | | $ | 83.7 | |
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Basic weighted average number of shares | | | 55.8 | | | | 56.1 | | | | 56.4 | | | | 56.3 | | | | 56.2 | | | | 54.1 | | | | 52.2 | | | | 51.7 | | | | 52.7 | |
Other share equivalents | | | 1.0 | | | | 1.1 | | | | 0.9 | | | | 1.0 | | | | 1.0 | | | | 1.1 | | | | 1.0 | | | | 1.1 | | | | 1.0 | |
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Diluted weighted average number of shares and equivalents | | | 56.8 | | | | 57.2 | | | | 57.3 | | | | 57.3 | | | | 57.2 | | | | 55.2 | | | | 53.2 | | | | 52.8 | | | | 53.7 | |
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Basic earnings (loss) per share: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Continuing operations | | $ | 0.70 | | | $ | 0.44 | | | $ | 0.57 | | | $ | 0.56 | | | $ | 2.27 | | | $ | 0.76 | | | $ | 0.62 | | | $ | 0.61 | | | $ | 1.99 | |
Discontinued operations: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Loss from discontinued operations | | | (0.03 | ) | | | (0.05 | ) | | | (0.07 | ) | | | (0.01 | ) | | | (0.15 | ) | | | (0.03 | ) | | | (0.03 | ) | | | (0.06 | ) | | | (0.12 | ) |
Impairment (charge) adjustment | | | (0.14 | ) | | | (0.15 | ) | | | — | | | | (0.01 | ) | | | (0.29 | ) | | | 0.04 | | | | — | | | | (0.33 | ) | | | (0.27 | ) |
Net loss on sale of hospitals | | | — | | | | — | | | | — | | | | — | | | | (0.01 | ) | | | — | | | | (0.01 | ) | | | — | | | | (0.01 | ) |
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(Loss) income from discontinued operations | | | (0.17 | ) | | | (0.20 | ) | | | (0.07 | ) | | | (0.02 | ) | | | (0.45 | ) | | | 0.01 | | | | (0.04 | ) | | | (0.39 | ) | | | (0.40 | ) |
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Net income | | $ | 0.53 | | | $ | 0.24 | | | $ | 0.50 | | | $ | 0.54 | | | $ | 1.82 | | | $ | 0.77 | | | $ | 0.58 | | | $ | 0.22 | | | $ | 1.59 | |
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Diluted earnings (loss) per share: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Continuing operations | | $ | 0.69 | | | $ | 0.43 | | | $ | 0.56 | | | $ | 0.55 | | | $ | 2.23 | | | $ | 0.75 | | | $ | 0.60 | | | $ | 0.60 | | | $ | 1.96 | |
Discontinued operations: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Loss from discontinued operations | | | (0.02 | ) | | | (0.05 | ) | | | (0.07 | ) | | | (0.01 | ) | | | (0.14 | ) | | | (0.03 | ) | | | (0.02 | ) | | | (0.06 | ) | | | (0.12 | ) |
Impairment (charge) adjustment | | | (0.14 | ) | | | (0.15 | ) | | | — | | | | (0.01 | ) | | | (0.29 | ) | | | 0.04 | | | | — | | | | (0.32 | ) | | | (0.27 | ) |
Net loss on sale of hospitals | | | — | | | | — | | | | — | | | | — | | | | (0.01 | ) | | | — | | | | (0.01 | ) | | | — | | | | (0.01 | ) |
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(Loss) income from discontinued operations | | | (0.16 | ) | | | (0.20 | ) | | | (0.07 | ) | | | (0.02 | ) | | | (0.44 | ) | | | 0.01 | | | | (0.03 | ) | | | (0.38 | ) | | | (0.40 | ) |
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Net income | | $ | 0.53 | | | $ | 0.23 | | | $ | 0.49 | | | $ | 0.53 | | | $ | 1.79 | | | $ | 0.76 | | | $ | 0.57 | | | $ | 0.22 | | | $ | 1.56 | |
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LIFEPOINT HOSPITALS, INC.
UNAUDITED STATISTICS
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| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Nine Months | |
| | Three Months Ended | | | Year Ended | | | Three Months Ended | | | Ended | |
| | March 31, | | | June 30, | | | September 30, | | | December 31, | | | December 31, | | | March 31, | | | June 30, | | | September 30, | | | September 30, | |
| | 2007 | | | 2007 | | | 2007 | | | 2007 | | | 2007 | | | 2008 | | | 2008 | | | 2008 | | | 2008 | |
Admissions | | | 50,895 | | | | 47,009 | | | | 47,118 | | | | 46,756 | | | | 191,778 | | | | 51,114 | | | | 45,945 | | | | 45,980 | | | | 143,039 | |
Equivalent admissions(1) | | | 97,108 | | | | 94,001 | | | | 94,874 | | | | 92,011 | | | | 377,994 | | | | 97,270 | | | | 93,063 | | | | 93,885 | | | | 284,218 | |
Revenues per equivalent admission | | $ | 6,651 | | | $ | 6,789 | | | $ | 6,756 | | | $ | 6,992 | | | $ | 6,795 | | | $ | 7,043 | | | $ | 7,154 | | | $ | 7,191 | | | $ | 7,128 | |
Outpatient factor(1) | | | 1.90 | | | | 2.00 | | | | 2.01 | | | | 1.97 | | | | 1.97 | | | | 1.90 | | | | 2.02 | | | | 2.04 | | | | 1.99 | |
Emergency room visits | | | 216,513 | | | | 215,992 | | | | 221,327 | | | | 215,128 | | | | 868,960 | | | | 228,060 | | | | 215,791 | | | | 219,852 | | | | 663,703 | |
Inpatient surgeries | | | 14,664 | | | | 14,133 | | | | 13,953 | | | | 13,982 | | | | 56,732 | | | | 13,907 | | | | 13,559 | | | | 13,997 | | | | 41,463 | |
Outpatient surgeries | | | 36,279 | | | | 36,874 | | | | 35,760 | | | | 35,525 | | | | 144,438 | | | | 35,270 | | | | 36,786 | | | | 36,926 | | | | 108,982 | |
Average length of stay (days) | | | 4.3 | | | | 4.2 | | | | 4.2 | | | | 4.3 | | | | 4.3 | | | | 4.4 | | | | 4.3 | | | | 4.2 | | | | 4.3 | |
Medicare case mix index | | | 1.25 | | | | 1.23 | | | | 1.24 | | | | 1.28 | | | | 1.25 | | | | 1.27 | | | | 1.27 | | | | 1.26 | | | | 1.27 | |
(1) Management and investors use equivalent admissions as a general measure of combined inpatient and outpatient volume. Equivalent admissions is computed by multiplying admissions (inpatient volumes) by the outpatient factor (the sum of gross inpatient revenue and gross outpatient revenue divided by gross inpatient revenue). The equivalent admissions computation “equates” outpatient revenue to the volume measure (admissions) used to measure inpatient volume resulting in a general measure of combined inpatient and outpatient volume.
LIFEPOINT HOSPITALS, INC.
UNAUDITED SUPPLEMENTAL INFORMATION
Dollars in millions, except per share amounts
Adjusted EBITDA is defined as earnings before depreciation and amortization, interest expense, net, impairment of long-lived assets, minority interests in earnings of consolidated entities, provision for income taxes and loss (income) from discontinued operations. LifePoint’s management and Board of Directors use adjusted EBITDA to evaluate the Company’s operating performance and as a measure of performance for incentive compensation purposes. LifePoint’s credit facilities use adjusted EBITDA for certain financial covenants. The Company believes adjusted EBITDA is a measure of performance used by some investors, equity analysts and others to make informed investment decisions. In addition, multiples of current or projected adjusted EBITDA are used to estimate current or prospective enterprise value. Adjusted EBITDA should not be considered as a measure of financial performance under U.S. generally accepted accounting principles, and the items excluded from adjusted EBITDA are significant components in understanding and assessing financial performance. Adjusted EBITDA should not be considered in isolation or as an alternative to net income, cash flows generated by operating, investing or financing activities or other financial statement data presented in the consolidated financial statements as an indicator of financial performance or liquidity. Because adjusted EBITDA is not a measurement determined in accordance with U.S. generally accepted accounting principles and is susceptible to varying calculations, adjusted EBITDA as presented may not be comparable to other similarly titled measures of other companies.
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| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Nine Months | |
| | Three Months Ended | | | Year Ended | | | Three Months Ended | | | Ended | |
| | March 31, | | | June 30, | | | September 30, | | | December 31, | | | December 31, | | | March 31, | | | June 30, | | | September 30, | | | September 30, | |
| | 2007 | | | 2007 | | | 2007 | | | 2007 | | | 2007 | | | 2008 | | | 2008 | | | 2008 | | | 2008 | |
Revenues | | $ | 645.8 | | | $ | 638.2 | | | $ | 641.0 | | | $ | 643.4 | | | $ | 2,568.4 | | | $ | 685.1 | | | $ | 665.7 | | | $ | 675.1 | | | $ | 2,025.9 | |
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Salaries and benefits | | | 249.8 | | | | 249.9 | | | | 252.8 | | | | 253.6 | | | | 1,006.1 | | | | 268.0 | | | | 263.9 | | | | 265.6 | | | | 797.5 | |
Supplies | | | 89.7 | | | | 87.3 | | | | 86.4 | | | | 88.8 | | | | 352.2 | | | | 93.3 | | | | 93.0 | | | | 93.0 | | | | 279.3 | |
Other operating expenses | | | 111.0 | | | | 118.8 | | | | 116.3 | | | | 117.9 | | | | 464.0 | | | | 121.0 | | | | 122.9 | | | | 128.3 | | | | 372.2 | |
Provision for doubtful accounts | | | 71.5 | | | | 79.5 | | | | 76.9 | | | | 79.1 | | | | 307.0 | | | | 80.9 | | | | 74.9 | | | | 78.9 | | | | 234.7 | |
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| | | 522.0 | | | | 535.5 | | | | 532.4 | | | | 539.4 | | | | 2,129.3 | | | | 563.2 | | | | 554.7 | | | | 565.8 | | | | 1,683.7 | |
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Adjusted EBITDA | | $ | 123.8 | | | $ | 102.7 | | | $ | 108.6 | | | $ | 104.0 | | | $ | 439.1 | | | $ | 121.9 | | | $ | 111.0 | | | $ | 109.3 | | | $ | 342.2 | |
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The following table reconciles adjusted EBITDA as presented above to net income as reflected in the unaudited condensed consolidated statements of operations:
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| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Nine Months | |
| | Three Months Ended | | | Year Ended | | | Three Months Ended | | | Ended | |
| | March 31, | | | June 30, | | | September 30, | | | December 31, | | | December 31, | | | March 31, | | | June 30, | | | September 30, | | | September 30, | |
| | 2007 | | | 2007 | | | 2007 | | | 2007 | | | 2007 | | | 2008 | | | 2008 | | | 2008 | | | 2008 | |
Adjusted EBITDA | | $ | 123.8 | | | $ | 102.7 | | | $ | 108.6 | | | $ | 104.0 | | | $ | 439.1 | | | $ | 121.9 | | | $ | 111.0 | | | $ | 109.3 | | | $ | 342.2 | |
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Less: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Depreciation and amortization | | | 31.8 | | | | 33.8 | | | | 31.6 | | | | 32.2 | | | | 129.4 | | | | 32.1 | | | | 33.5 | | | | 32.2 | | | | 97.8 | |
Interest expense, net | | | 26.2 | | | | 25.0 | | | | 21.5 | | | | 21.8 | | | | 94.5 | | | | 22.1 | | | | 22.0 | | | | 22.1 | | | | 66.2 | |
Impairment of long-lived assets | | | — | | | | — | | | | — | | | | — | | | | — | | | | — | | | | 0.3 | | | | 0.9 | | | | 1.2 | |
Minority interests in earnings of consolidated entities | | | 0.3 | | | | 0.5 | | | | 0.7 | | | | 0.2 | | | | 1.7 | | | | 0.5 | | | | 0.6 | | | | 0.5 | | | | 1.6 | |
Provision for income taxes | | | 26.6 | | | | 18.4 | | | | 22.7 | | | | 18.1 | | | | 85.8 | | | | 25.9 | | | | 22.4 | | | | 22.1 | | | | 70.4 | |
Loss (income) from discontinued operations | | | 9.1 | | | | 11.6 | | | | 3.9 | | | | 1.1 | | | | 25.7 | | | | (0.5 | ) | | | 1.7 | | | | 20.1 | | | | 21.3 | |
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Net income | | $ | 29.8 | | | $ | 13.4 | | | $ | 28.2 | | | $ | 30.6 | | | $ | 102.0 | | | $ | 41.8 | | | $ | 30.5 | | | $ | 11.4 | | | $ | 83.7 | |
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