Exhibit 99.1 (b) 4
Normalized
CONSOLIDATED STATEMENTS OF INCOME
NDCHealth Corporation and Subsidiaries
(In thousands, except per share data)
Year Ended | ||||||||
May 31, 2002 | May 31, 2001 | |||||||
Revenues: | ||||||||
Information management | $ | 150,399 | $ | 136,616 | ||||
Network services and systems | 198,622 | 176,015 | ||||||
349,021 | 312,631 | |||||||
Operating expenses: | ||||||||
Cost of service | 172,703 | 154,496 | ||||||
Sales, general and administrative | 74,696 | 71,081 | ||||||
Depreciation and amortization | 23,951 | 31,615 | ||||||
271,350 | 257,192 | |||||||
Operating income | 77,671 | 55,439 | ||||||
Other income (expense): | ||||||||
Interest and other income | 1,779 | 755 | ||||||
Interest and other expense | (9,693 | ) | (8,038 | ) | ||||
Minority interest in losses | 1,863 | 1,137 | ||||||
(6,051 | ) | (6,146 | ) | |||||
Income before income taxes and equity in losses of affiliated companies: | ||||||||
Information management | 25,314 | 18,225 | ||||||
Network services and systems | 46,306 | 31,068 | ||||||
71,620 | 49,293 | |||||||
Provision for income taxes | 25,781 | 18,978 | ||||||
Income before equity in losses of affiliated companies | 45,839 | 30,315 | ||||||
Equity in losses of affiliated companies, net of income taxes | (2,064 | ) | (751 | ) | ||||
Net income | $ | 43,775 | $ | 29,564 | ||||
Basic earnings per share | $ | 1.28 | $ | 0.90 | ||||
Shares | 34,087 | 33,009 | ||||||
Diluted earnings per share: | $ | 1.23 | $ | 0.87 | ||||
Shares | 39,636 | 34,153 |
Normalized results for the year ended May 31, 2002 exclude revenues and operating expenses related to divested businesses of $4.4 million and $4.9 million respectively. For the year ended May 31, 2001 normalized results exclude revenues and operating expenses related to divested businesses of $24.4 million and $23.9 million, respectively, valuation adjustment in Medscape investment of $7.0 million, restructuring and impairment charges primarily related to consolidation of locations and associated staff and expense reductions of $2.2 million, and discontinued operations of $8.3 million.