Exhibit 99.3
CUC International Inc. and Subsidiaries
Exhibit 99.3--Selected Supplemental Consolidated Financial Data
(In thousands, except for per common share data)
Year Ended January 31,
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1996 (b) 1995 (b) 1994 1993 (b) 1992
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Income Statement Data (a)
Total revenues $ 1,935,232 $ 1,554,611 $ 1,278,664 $ 1,043,311 $904,052
Income from continuing operations before
income taxes 235,312 (c) 256,931 (f) 198,319 117,434 100,896 (g)
Income from continuing operations 144,975 (c) 162,057 (f) 124,705 80,239 70,479 (g)
Income per common share from continuing
operations (d) $ .55 (c) $ .64 (f) $ .51 $ .35 $ .37 (g)
Cash dividends per common share (i) $ .02 $ .02 $ .02 $ .02 $ .02
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Weighted average number of common and
dilutive common equivalent shares
outstanding (d) 261,472 252,842 243,943 227,141 192,108
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Balance Sheet Data (a)
Total assets (e) $2,068,196 $1,772,122 $1,199,805 $1,032,269 $814,961
Long-term obligations (h) 6,481 22,872 24,235 30,091 16,336
Zero coupon convertible notes 14,410 15,046 22,176 37,295 69,228
Convertible debt 23,389 34,634 - - -
Stockholders' equity 1,002,523 (j) 826,083 558,181 389,461 235,675
Working capital (e) 759,271 523,996 298,230 147,475 167,394
(a) Includes acquisitions accounted for in accordance with the
pooling-of-interests method of accounting (see Note B to Supplemental
Consolidated Financial Statements).
(b) Includes acquisitions accounted for in accordance with the purchase method
of accounting (see Note B to the Supplemental Consolidated Financial
Statements).
(c) Includes provision for costs incurred in connection with the acquisition of
Advance Ross Corporation ("Advance Ross"). The charge aggregated $5.2
million ($4.2 million or $.02 per common share after-tax effect). Also
during fiscal 1996, Ideon Group, Inc. ("Ideon") recorded pre-tax charges of
$43.8 million related to the abandonment of certain new product development
efforts and the restructuring of its SafeCard division and its corporate
infrastructure.
(d) Adjusted to give retroactive effect to the three-for-two stock split
effective June 30, 1995 for shareholders of record on June 19, 1995.
(e) All periods presented reflect the Company's reclassifications of deferred
membership acquisition costs (previously classified as an offset to
deferred membership income) and membership solicitations in process
(previously classified as a current asset) to noncurrent assets.
(f) During fiscal 1995, Ideon recorded a pre-tax charge of $7.9 million for
various severance agreements and a lease termination in connection with a
reorganization of its operations and senior management team.
(g) Includes provision for costs incurred in connection with the integration of
the operations of the Company and Entertainment Publishing Corp. (acquired
during fiscal 1992 in a transaction accounted for in accordance with the
pooling-of-interests method) and costs of professional fees and other
expenses related to the merger with Entertainment Publishing Corp. The
charge aggregated $20.7 million ($15 million or $.09 per common share
after-tax effect). Also includes a gain from the sale of an unconsolidated
affiliate of Advance Ross. The gain aggregated $11.7 million ($7 million or
$.04 per common share after-tax effect). In addition, includes a pre-tax
charge of $17.5 million in connection with Ideon's relocation of an
operations center.
(h) Includes current portion of long-term debt of $1.4 million, $9 million,
$6.3 million, $3.4 million and $1.2 million at January 31, 1996, 1995,
1994, 1993 and 1992, respectively. Excludes $15.4 million, $11.8 million,
$5.5 million, $23.2 million and $26.7 million of amounts due under
revolving credit facilities at January 31, 1996, 1995, 1994, 1993 and 1992,
respectively, and $6 million due at January 31, 1993 under a note payable
issued in connection with the acquisition of Sally Foster Gift Wrap, LP.
(i) Represents cash dividends paid to Ideon common stockholders. No Common
Stock cash dividends have been paid or declared during the five years ended
January 31, 1996. However, an insignificant amount of cash dividends were
paid in respect of the NAOG common stock for the fiscal years ended January
31, 1994, 1993 and 1992.
(j) Effective January 1, 1995, Ideon changed its fiscal year end from October
31 to December 31 (the "Ideon Transition Period"). The Ideon Transition
Period has been excluded from the accompanying supplemental consolidated
statement of income. Ideon's revenues and net loss for the Ideon Transition
Period were $34.7 million and $(49.9) million, respectively. The net loss
for the Ideon Transition Period was principally the result of a $65.5
million one-time, non-cash, pretax charge recorded in connection with a
change in accounting for deferred membership acquisition costs.