EXHIBIT 99.1
GIANT INDUSTRIES, INC.
NEWS RELEASE
Contact: Mark B. Cox
Executive Vice President, Treasurer, & Chief Financial Officer
Giant Industries, Inc.
(480) 585-8888
FOR IMMEDIATE RELEASE
May 03, 2006
GIANT INDUSTRIES, INC. ANNOUNCES
FIRST QUARTER 2006 OPERATING RESULTS
Scottsdale, Arizona, May 03, 2006 ? Giant Industries, Inc. [NYSE: GI] today
reported a net loss for the first quarter ended March 31, 2006 of $12.4
million or $0.85 per diluted share. This compares to net earnings for the
first quarter of 2005 of $10.1 million or $0.80 per diluted share.
Fred Holliger, Giant's Chief Executive Officer, said, "Our first quarter was
negatively impacted by low production levels at the Yorktown refinery.
Following a fire in late November 2005, the refinery was shut down until
January 15, 2006. Upon resuming operations, Yorktown operated at
approximately two-thirds of capacity or approximately 40,000 barrels per day
for most of the remainder of the quarter, however, the Fluid Catalytic
Cracker unit did not return to operation until mid-April. As a result, in the
first quarter of 2006, Yorktown had refinery sourced sales of approximately
33,000 barrels per day compared to approximately 63,000 barrels per day in
the first quarter last year. Additionally, operating the refinery without the
Fluid Catalytic Cracker resulted in the production of approximately 18,000
barrels per day of lower value feedstocks that were sold at a substantial
discount. Normally, these feedstocks are processed in the Fluid Catalytic
Cracker where they are upgraded to higher value finished products. On a
positive note, earnings in the first quarter at our Four Corners refineries
exceeded the prior year level as well as their budgeted levels for the first
quarter of 2006 as refining margins were strong in our marketing areas."
"We are currently in discussions with our insurers regarding our recoveries
relative to the property damage and business interruption loss at Yorktown.
In the first quarter, we received a partial advance from our insurers in the
amount of $9.9 million and we are hopeful that we will be able to finalize
the claim in a timely manner. It should be noted that all future insurance
proceeds will be booked as income at the time they are received. Due to the
refining margin environment during our outage we believe that these
reimbursements will have a significant impact on our 2006 earnings."
"Retail operations operating profit was up $2.7 million as a result of
improvement in fuel margins and improved merchandise and fuel sales in the
first quarter of 2006 compared to the first quarter last year. Same store
fuel volumes increased by more than three percent and merchandise sales
increased about six percent in the quarter over last year's first quarter
level. "
"Our Wholesale operations also continued to perform well in the first quarter
of 2006 as the operating income contribution from our Wholesale operations
increased by approximately 32% as a result of the additional contribution
from an acquisition completed in July 2005."
Holliger continued, "At Yorktown, we recently completed the repairs on the
units damaged by the fire, as well as a turnaround of the Fluid Catalytic
Cracker unit. We also completed an upgrade project that should increase our
yield of higher value finished products from the Fluid Catalytic Cracker.
The refinery is currently operating at full capacity, and we are encouraged
by the improved product yield that we are experiencing from the Fluid
Catalytic Cracker."
Commenting on second quarter operations, Holliger said, "Refining margins at
the Four Corners refineries and Yorktown refinery are currently higher than
the same time last year. We continue to believe that strong product demand
coupled with refining capacity constraints support a positive second quarter
outlook for the industry as well as the remainder of 2006."
"The Wholesale group continues to experience growth in fuel volumes and
higher fuel margins compared to the same time last year. Our Retail
operations are continuing to experience growth in both merchandise and fuel
sales on a comparable store basis. Recently, fuel margins within our Retail
operations have been lower primarily due to increases in the cost of fuel,
while merchandise margins have remained stable."
Giant's senior management will hold a conference call at 2:00 p.m. EDT on May
4, 2006 to discuss this earnings release and provide an update on company
operations. The conference call will be broadcast live on the company's
website at www.giant.com.
Giant Industries, Inc., headquartered in Scottsdale, Arizona, is a refiner
and marketer of petroleum products. Giant owns and operates one Virginia and
two New Mexico crude oil refineries, a crude oil gathering pipeline system
based in Farmington, New Mexico, which services the New Mexico refineries,
finished products distribution terminals in Albuquerque, New Mexico and
Flagstaff, Arizona, a fleet of crude oil and finished product truck
transports, and a chain of retail service station/convenience stores in New
Mexico, Colorado, and Arizona. Giant is also the parent Company of Phoenix
Fuel Co., Inc. and Dial Oil Co., both of which are wholesale petroleum
products distributors. For more information, please visit Giant's website at
www.giant.com.
This press release contains forward-looking statements that involve known and
unknown risks and uncertainties. Forward-looking statements are identified by
words or phrases such as "believes," "expects," "anticipates," "estimates,"
"should," "could," "plans," "intends," "will," variations of such words and
phrases, and other similar expressions. While these forward-looking
statements are made in good faith, and reflect the Company's current judgment
regarding such matters, actual results could vary materially from the
forward-looking statements. Important factors that could cause actual results
to differ from forward-looking statements include, but are not limited to:
the risk that insurance proceeds will not have a significant impact on 2006
earnings; the risk that upgrades to the Fluid Catalytic Cracker will not
continue to produce improved product yields; the risk that refining margins
will not remain higher than the same time last year; the risk that product
demand will not remain strong; the risk that refining capacity constraints
will not continue; the risk that the Wholesale group will not continue to
experience growth in fuel volumes and margins; the risk that our Retail group
will not continue to experience growth in both merchandise and fuel sales on
a comparable store basis; and other risks detailed from time to time in the
Company's filings with the Securities and Exchange Commission. All subsequent
written and oral forward-looking statements attributable to the Company, or
persons acting on behalf of the Company, are expressly qualified in their
entirety by the foregoing. Forward-looking statements made by the Company
represent its judgment on the dates such statements are made. The Company
assumes no obligation to update any forward-looking statements to reflect new
or changed events or circumstance.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(Unaudited)
(In thousands except shares and per share data)
- ------------------------------------------------------------------------------------
Three Months Ended March 31,
- ------------------------------------------------------------------------------------
2006 2005
- ------------------------------------------------------------------------------------
Net revenues $ 863,025 $ 711,726
Cost of products sold (excluding depreciation
and amortization) 810,552 625,790
- ------------------------------------------------------------------------------------
Operating expenses 52,688 46,244
Depreciation and amortization 9,567 10,970
Selling, general and administrative expenses 10,006 7,799
Net gain on disposal/write-down of assets (640) (13)
Gain from insurance settlement due to fire incident (2,853) (3,492)
- ------------------------------------------------------------------------------------
Operating (loss)/ income (16,295) 24,428
Interest expense (4,682) (6,993)
Amortization of financing costs (399) (504)
Investment and other income 1,602 120
- ------------------------------------------------------------------------------------
(Loss)/earnings from continuing operations
before income taxes (19,774) 17,051
(Benefit)/provision for income taxes (7,424) 6,993
- ------------------------------------------------------------------------------------
(Loss)/earnings from continuing operations (12,350) 10,058
Loss from discontinued operations, net of
income tax benefit of $4 - (7)
- ------------------------------------------------------------------------------------
Net (loss)/earnings $ (12,350) $ 10,051
====================================================================================
Net (loss)/earnings per common share:
Basic
Continuing operations $ (0.85) $ 0.81
Discontinued operations - -
- ------------------------------------------------------------------------------------
$ (0.85) $ 0.81
====================================================================================
Assuming dilution
Continuing operations $ (0.85) $ 0.80
Discontinued operations - -
- ------------------------------------------------------------------------------------
$ (0.85) $ 0.80
====================================================================================
Weighted average number of shares outstanding:
Basic 14,582,228 12,381,540
Assuming dilution 14,582,228 12,579,201
====================================================================================
CONDENSED CONSOLIDATED BALANCE SHEETS
(Unaudited)
(In thousands)
- -----------------------------------------------------------------------------------------
March 31, 2006 December 31, 2005
- -----------------------------------------------------------------------------------------
Assets
Current assets $ 384,377 $ 442,355
- -----------------------------------------------------------------------------------------
Property, plant and equipment 826,478 764,788
Less accumulated depreciation and amortization (300,354) (297,962)
- -----------------------------------------------------------------------------------------
526,124 466,826
Other assets 79,280 75,291
- -----------------------------------------------------------------------------------------
Total Assets $ 989,781 $ 984,472
=========================================================================================
Liabilities and Stockholders' Equity
Current liabilities $ 226,410 $ 208,508
Long-term debt 274,990 274,864
Deferred income taxes 72,834 76,834
Other liabilities 26,485 24,430
Stockholders' equity 389,062 399,836
- -----------------------------------------------------------------------------------------
Total Liabilities and Stockholders' Equity $ 989,781 $ 984,472
=========================================================================================
OPERATING STATISTICS
1 Qtr. 2006 4 Qtr. 2005 3 Qtr. 2005 2 Qtr. 2005 1 Qtr. 2005
- -----------------------------------------------------------------------------------------------------------
Refining Group:
- ---------------
Four Corners Operations:
Crude Oil/NGL Throughput (BPD) 29,122 29,033 29,867 29,811 28,810
Refinery Sourced Sales Barrels (BPD) 28,471 27,075 29,096 29,344 28,559
Avg. Crude Oil Costs ($/Bbl) $ 62.30 $ 60.21 $ 60.59 $ 51.64 $ 47.46
Refining Margins ($/Bbl) $ 10.84 $ 16.64 $ 18.08 $ 13.48 $ 7.86
Retail Fuel Volumes Sold as a % of Four
Corners Refinery's Sourced Sales Barrels 38% 37% 38% 37% 37%
Yorktown Operations:
Crude Oil/NGL Throughput (BPD) 37,589 41,685 68,201 68,449 65,740
Refinery Sourced Sales Barrels (BPD) 33,466 45,566 70,936 71,539 62,726
Avg. Crude Oil Costs ($/Bbl) $ 59.02 $ 57.72 $ 58.05 $ 48.76 $ 44.96
Refining Margins ($/Bbl) $ (3.50) $ 9.61 $ 11.25 $ 7.30 $ 6.78
Retail Group:(1)
- -------------
Fuel Gallons Sold (000's) 40,386 39,229 42,529 41,410 39,469
Fuel Margins ($/gal) $ 0.14 $ 0.29 $ 0.21 $ 0.17 $ 0.11
Merchandise Sales ($ in 000's) $ 33,312 $ 34,524 $ 38,285 $ 36,325 $ 31,287
Merchandise Margins 27% 28% 27% 27% 27%
Number of Operating Units at End of Period 122 123 124 124 125
Wholesale Group:
- ----------------
Phoenix Fuel
- ------------
Fuel Gallons Sold (000's) 120,681 119,029 118,844 120,344 120,865
Fuel Margins ($/gal) $ 0.06 $ 0.08 $ 0.08 $ 0.06 $ 0.06
Lubricant Sales ($ in 000's) $ 9,564 $ 8,295 $ 8,247 $ 9,027 $ 8,412
Lubricant Margins 14% 14% 28% 10% 14%
Dial Oil
- --------
Fuel Gallons Sold (000's) 25,942 28,491 24,963 - -
Fuel Margins ($/gal) $ 0.14 $ 0.18 $ 0.12 - -
Lubricant Sales ($ in 000's) $ 8,080 $ 6,494 $ 5,833 - -
Lubricant Margins 11% 16% 13% - -
Merchandise Sales ($ in 000's) $ 2,219 $ 1,800 $ 2,241 - -
Merchandise Margins 30% 36% 26% - -
Operating Retail Outlets at Period End 12 12 12 - -
===========================================================================================================
1 Qtr. 2006 4 Qtr. 2005 3 Qtr. 2005 2 Qtr. 2005 1 Qtr. 2005
- -----------------------------------------------------------------------------------------------------------
Operating (loss)/income(before
corporate allocations) (in 000's)
- -----------------------------------
Refining - Four Corners Operations $ 11,233 $ 22,539 $ 32,968 $ 19,724 $ 6,285
- Yorktown Operations (30,805) 16,533 52,288 27,312 17,650
Retail(1) 990 6,169 3,804 3,114 (1,679)
Wholesale:
Phoenix Fuel 2,987 4,110 6,641 2,815 3,699
Dial Oil 1,909 2,581 1,509 - -
Corporate (6,102) (5,800) (11,698) (8,557) (5,043)
Net gain/(loss) on disposal/write-down
of assets(1)(2) 3,493 (174) (1,055) 425 3,505
- -----------------------------------------------------------------------------------------------------------
Total(1) $(16,295) $ 45,958 $ 84,457 $ 44,833 $ 24,417
===========================================================================================================
Capital expenditures (in 000's)(3)
Refining - Four Corners Operations(4) $ 9,783 $ 5,687 $ 3,958 $ 1,930 $ 1,167
- Yorktown Operations(5) 47,791 14,190 14,734 10,790 9,837
Retail 814 1,488 1,221 1,230 780
Wholesale:
Phoenix Fuel 1,048 366 470 576 458
Dial Oil 156 163 58 - -
Corporate 105 375 252 345 584
- -----------------------------------------------------------------------------------------------------------
Total $ 59,697 $ 22,269 $ 20,693 $ 14,871 $ 12,826
===========================================================================================================
(1) Includes discontinued operations.
(2) Includes insurance proceeds related to the Ciniza and Yorktown fire incident.
(3) Excludes Yorktown refinery acquisition contingent payments.
(4) Includes disbursements related to the Ciniza fire incident.
(5) Includes disbursements related to the Yorktown fire incident.
Selected Financial Data
March 31, 2006 December 31, 2005
- -----------------------------------------------------------------------------------------
Working Capital (In Thousands) $ 157,967 $ 233,847
Current Ratio 1.70:1 2.12:1
Long-Term Debt As A Percent of Total Capital (6) 41.4% 40.7%
Net Debt As A Percent of Total Net Capital (7) 32.9% 21.7%
Book Value Per Share (8) $ 26.57 $ 27.36
Net cash (used in)/provided by operating activities $ (31,498) $ 188,808
- -----------------------------------------------------------------------------------------
(6) Total capital represents long-term debt plus total stockholders' equity.
(7) Net debt represents long-term debt less cash and cash equivalents. Total net capital
represents long-term debt less cash and cash equivalents plus total stockholders' equity.
(8) Book value per share represents total stockholders' equity divided by number of common
shares outstanding.
Share Price Data (NYSE: GI)
High Low Close
- -------------------------------------------
2006 1st Quarter $71.00 $52.44 $69.54
2005 4th Quarter $60.50 $47.80 $51.96
2005 3rd Quarter $59.74 $35.90 $58.54
2005 2nd Quarter $36.49 $25.52 $36.00
2005 1st Quarter $31.81 $23.54 $25.70
RECONCILIATIONS TO AMOUNTS REPORTED UNDER GENERALLY ACCEPTED ACCOUNTING
PRINCIPLES
REFINING GROUP
- --------------
Refining Margin
- ---------------
Refining margin is the difference between average net sales prices and
average cost of products produced per refinery sourced sales barrel of
refined product. Refining margins for each of our refineries and all of our
refineries on a consolidated basis are calculated as shown below.
Three Months Ended March 31,
- ---------------------------------------------------------------------------------------------
2006 2005
- ---------------------------------------------------------------------------------------------
AVERAGE PER BARREL
Four Corners Operations
Net sales $ 76.39 $ 59.15
Less cost of products 65.55 51.29
- ---------------------------------------------------------------------------------------------
Refining margin $ 10.84 $ 7.86
=============================================================================================
Yorktown Operations
Net sales $ 62.11 $ 52.63
Less cost of products 65.61 45.85
- ---------------------------------------------------------------------------------------------
Refining margin $ (3.50) $ 6.78
=============================================================================================
Consolidated
Net sales $ 68.68 $ 54.67
Less cost of products 65.59 47.55
- ---------------------------------------------------------------------------------------------
Refining margin $ 3.09 $ 7.12
=============================================================================================
Reconciliations of refined product sales from
produced products sold per barrel to net revenues
Four Corners Operations
Average sales price per produced barrel sold $ 76.39 $ 59.15
Times refinery sourced sales barrels per day 28,471 28,559
Times number of days in period 90 90
- ---------------------------------------------------------------------------------------------
Refined product sales from produced products sold* (000's) $ 195,741 $ 152,034
=============================================================================================
Yorktown Operations
Average sales price per produced barrel sold $ 62.11 $ 52.63
Times refinery sourced sales barrels per day 33,466 62,726
Times number of days in period 90 90
- ---------------------------------------------------------------------------------------------
Refined product sales from produced products sold* (000's) $ 187,072 $ 297,114
=============================================================================================
Consolidated (000's)
Sum of refined product sales from produced products sold* $ 382,813 $ 449,148
Purchased product, Transportation and other revenues 183,571 43,879
- ---------------------------------------------------------------------------------------------
Net revenue $ 566,384 $ 493,027
=============================================================================================
*Includes inter-segment net revenues.
Three Months Ended March 31,
- ---------------------------------------------------------------------------------------------
2006 2005
- ---------------------------------------------------------------------------------------------
Reconciliation of average cost of products per
produced per barrel sold to total cost of products
sold (excluding depreciation and amortization)
Four Corners Operations
Average cost of products per produced barrel sold $ 65.55 $ 51.29
Times refinery sourced sales barrels per day 28,471 28,559
Times number of days in period 90 90
- ---------------------------------------------------------------------------------------------
Cost of products for produced products sold (000's) $ 167,965 $ 131,831
=============================================================================================
Yorktown Operations
Average cost of products per produced barrel sold $ 65.61 $ 45.85
Times refinery sourced sales barrels per day 33,466 62,726
Times number of days in period 90 90
- ---------------------------------------------------------------------------------------------
Cost of products for produced products sold (000's) $ 197,613 $ 258,839
=============================================================================================
Consolidated
Sum of refined cost of produced products sold $ 365,578 $ 390,670
Purchased product, transportation and other
cost of products sold 175,210 36,398
- ---------------------------------------------------------------------------------------------
Total cost of products sold (excluding
depreciation and amortization) $ 540,788 $ 427,068
=============================================================================================
RETAIL GROUP
- ------------
Fuel Margin
- -----------
Fuel margin is the difference between fuel sales less cost of fuel sales
divided by number of gallons sold.
Three Months Ended March 31,
- ---------------------------------------------------------------------------------------------
2006 2005
- ---------------------------------------------------------------------------------------------
(in 000's except fuel margin per gallon)
Fuel sales $ 97,177 $ 76,697
Less cost of fuel sold 91,485 72,209
- ---------------------------------------------------------------------------------------------
Fuel margin $ 5,692 $ 4,488
Number of gallons sold 40,386 39,469
Fuel margin per gallon $ 0.14 $ 0.11
Reconciliation of fuel sales to net revenues (000's)
Fuel sales $ 97,177 $ 76,697
Excise taxes included in sales (15,484) (14,887)
- ---------------------------------------------------------------------------------------------
Fuel sales, net of excise taxes 81,693 61,810
Merchandise sales 33,312 31,287
Other sales 4,960 3,829
- ---------------------------------------------------------------------------------------------
Net revenues $ 119,965 $ 96,926
=============================================================================================
Reconciliation of fuel cost of products sold to
total cost of products sold (excluding depreciation
and amortization) (000's)
Fuel cost of products sold $ 91,485 $ 72,209
Excise taxes included in cost of products sold (15,484) (14,887)
- ---------------------------------------------------------------------------------------------
Fuel cost of products sold, net of excise taxes 76,001 57,322
Merchandise cost of products sold 24,239 22,785
Other cost of products sold 4,015 3,068
- ---------------------------------------------------------------------------------------------
Total cost of products sold (excluding
depreciation and amortization) $ 104,255 $ 83,175
=============================================================================================
WHOLESALE GROUP
- ---------------
Fuel Margin
- -----------
Fuel margin is the difference between fuel sales less cost of fuel sales
divided by number of gallons sold.
Phoenix Fuel
- ------------
Three Months Ended March 31,
- ---------------------------------------------------------------------------------------------
2006 2005
- ---------------------------------------------------------------------------------------------
(in 000's except fuel margin per gallon)
Fuel sales $ 270,312 $ 222,887
Less cost of fuel sold 263,362 215,434
- ---------------------------------------------------------------------------------------------
Fuel margin $ 6,950 $ 7,453
Number of gallons sold 120,681 120,865
Fuel margin per gallon $ 0.06 $ 0.06
Reconciliation of fuel sales to net revenues (000's)
Fuel sales $ 270,312 $ 222,887
Excise taxes included in sales (45,431) (40,832)
- ---------------------------------------------------------------------------------------------
Fuel sales, net of excise taxes 224,881 182,055
Lubricant sales 9,564 8,412
Other sales 1,214 1,197
- ---------------------------------------------------------------------------------------------
Net revenues $ 235,659 $ 191,664
=============================================================================================
Reconciliation of fuel cost of products sold to
total cost of products sold (excluding depreciation
and amortization) (000's)
Fuel cost of products sold $ 263,362 $ 215,434
Excise taxes included in cost of products sold (45,431) (40,832)
- ---------------------------------------------------------------------------------------------
Fuel cost of products sold, net of excise taxes 217,931 174,602
Lubricant cost of products sold 8,179 7,242
Other cost of products sold 216 332
- ---------------------------------------------------------------------------------------------
Total cost of products sold (excluding
depreciation and amortization) $ 226,326 $ 182,176
=============================================================================================
Dial Oil(1),(2)
- --------
Three Months Ended March 31,
- ---------------------------------------------------------------------------------------------
2006 2005
- ---------------------------------------------------------------------------------------------
(in 000's except fuel margin per gallon)
Fuel sales $ 51,283 $ -
Less cost of fuel sold 47,567 -
- ---------------------------------------------------------------------------------------------
Fuel margin $ 3,716 $ -
Number of gallons sold 25,942 -
Fuel margin per gallon $ 0.14 $ -
Reconciliation of fuel sales to net revenues (000's)
Fuel sales $ 51,283 $ -
Lubricant and merchandise sales 10,298 -
Other sales 647 -
- ---------------------------------------------------------------------------------------------
Net revenues $ 62,228 $ -
=============================================================================================
Reconciliation of cost of fuel sold to total
cost of products sold (excluding depreciation
and amortization)
Fuel cost of products sold $ 47,567 $ -
Lubricants and merchandise cost of products sold 8,730 -
Other cost of products sold 199 -
- ---------------------------------------------------------------------------------------------
Total cost of products sold (excluding
depreciation and amortization) $ 56,496 $ -
=============================================================================================
(1) Dial was purchased on July 12, 2005. Therefore, no comparative statistics are shown for the
three months ended March 31, 2005.
(2) Dial Oil presents sales and cost of sales, net of excise taxes.
Consolidated
- ------------
Three Months Ended March 31,
- ---------------------------------------------------------------------------------------------
2006 2005
- ---------------------------------------------------------------------------------------------
Reconciliation to net revenues reported in
Condensed Consolidated Statement of Operations (000's)
Net revenues ? Refinery Group $ 566,384 $ 493,027
Net revenues ? Retail Group 119,965 96,926
Net revenues ? Wholesale Group:
Net revenues ? Phoenix Fuel 235,659 191,664
Net revenues ? Dial Oil 62,228 -
Net revenues ? Other 71 98
Eliminations (121,282) (69,989)
- ---------------------------------------------------------------------------------------------
Total net revenues reported in Condensed
Consolidated Statement of Earnings $ 863,025 $ 711,726
=============================================================================================
Reconciliation to cost of products sold (excluding
depreciation and amortization) in Condensed
Consolidated Statement of Operations (000's)
Cost of products sold ? Refinery Group
(excluding depreciation and amortization) $ 540,788 $ 427,068
Cost of products sold ? Retail Group
(excluding depreciation and amortization) 104,255 83,175
Cost of products sold ? Wholesale Group:
Cost of products sold ? Phoenix Fuel
(excluding depreciation and amortization) 226,326 182,176
Cost of products sold ? Dial Oil
(excluding depreciation and amortization) 56,496 -
Eliminations (121,282) (69,989)
Other 3,969 3,360
- ---------------------------------------------------------------------------------------------
Total cost of products sold (excluding depreciation
and amortization) reported in Condensed Consolidated
Statement of Operations $ 810,552 $ 625,790
=============================================================================================
Our refining margin per barrel is calculated by subtracting cost of products
from net sales and dividing the result by the number of barrels sold for the
period. Our fuel margin per gallon is calculated by subtracting cost of fuel
sold from fuel sales and dividing the result by the number of gallons sold
for the period. We use refining margin per barrel and fuel margin per gallon
to evaluate performance, and allocate resources. These measures may not be
comparable to similarly titled measures used by other companies. Investors
and analysts use these financial measures to help analyze and compare
companies in the industry on the basis of operating performance. These
financial measures should not be considered as alternatives to segment
operating income, revenues, costs of sales and operating expenses or any
other measure of financial performance presented in accordance with
accounting principles generally accepted in the United States of America.