| Cotiviti Holdings, Inc. 2018 Consolidated Statement of Operations (unaudited) Net revenue Cos t of revenue Selling, general and adm inis trative expens es Depreciation and am ortization of property and equipm ent Am ortization of intangible as s ets Trans action-related expens es $ 177,453 64,761 50,505 7,200 14,397 7,193 $ 167,611 64,993 40,864 5,896 15,201 661 6 % (0) % 24 % 22 % (5) % NM % $ 396,487 129,326 104,451 14,442 28,793 7,407 $ 327,744 127,967 82,436 11,471 30,400 1,392 21 1 27 26 % % % % (5) % NM % Operating incom e Other expens e (incom e) Incom e tax expens e 33,397 9,869 6,953 39,996 11,165 7,743 (16) % (12) % (10) % 112,068 18,711 22,855 74,078 19,133 6,882 51 % (2) % NM % Earnings per s hare: Bas ic Diluted $ 0.18 0.17 $ 0.23 0.22 $ 0.76 0.74 $ 0.52 0.51 Effective Tax Rate 29.5 % 26.9 % 24.5 % 12.5 % Cost of revenue supplemental information: Cos t of revenue Stock-bas ed com pens ation Original Medicare RAC contract variable com pens ation Cos t of revenue, adjus ted $ 64,761 820 - 64,993 494 - (0) % 66 % NM % (1) % $ 129,326 1,535 1,205 $ 127,967 960 - 1 60 NM % % % 63,941 64,499 126,586 127,007 (0) % Selling, general and administrative expenses supplemental information: Selling, general and adm inis trative expens es Stock-bas ed com pens ation Selling, general and adm inis trative expens es , adjus ted 50,505 7,921 40,864 1,961 24 304 9 % % % 104,451 15,852 82,436 3,578 27 343 12 % % % 42,584 38,903 88,599 78,858 a) Excludes depreciation and amortization and transaction-related expenses. b ) Excludes depreciation and amortization, transaction-related expenses, stock-b ased compensation and variab le compensation related to the original Medicare RAC contract. 4 115,266105,8579 %233,777210,40311 % $106,525$103,4023 %$215,185$205,8655 % Total operating expenses(a) Total operating expenses, adjusted(b) $16,575$21,088(21) %$70,502$48,06347 % Net Income 144,056127,61513 %284,419253,66612 % Total Operating Expens es Six Months Ended June 30, 20182017Change Three Months Ended June 30, 20182017Change (unaudited, $ in thousands) |