.
.
.
CHOICEPOINT INC. EXHIBIT 99.2
OPERATING RESULTS BY QUARTER
PROFORMA OPERATING INCOME WITHOUT GOODWILL AMORTIZATION (A)
TOTAL TOTAL TOTAL
1998 1999 Q1 2000 Q2 2000 Q3 2000 Q4 2000 2000 Q1 2001 Q2 2001 Q3 2001
-------- -------- -------- -------- -------- -------- -------- -------- -------- --------
Insurance Services
Revenue $148,017 $161,056 $ 45,893 $ 47,357 $ 48,752 $47,820 $189,822 $ 54,263 $ 57,283 $ 58,734
Business & Government
Svcs Revenue 150,169 187,999 54,583 58,480 60,316 59,891 233,270 61,921 64,875 70,608
Marketing Services
Revenue 6,340 42,946 15,135 15,811 15,881 16,722 63,549 16,586 16,150 22,054
Royalty Revenue 6,636 6,219 1,543 1,648 1,604 1,569 6,364 1,657 1,807 1,630
-------- -------- -------- -------- -------- -------- -------- -------- -------- --------
Core Revenue (c) $311,162 $398,220 $117,154 $123,296 $126,553 $126,002 $493,005 $134,427 $140,115 $153,026
======== ======== ======== ======== ======== ======== ======== ======== ======== ========
Revenue from Divested
& Discontinued
Lines (b) 106,063 64,035 18,170 13,250 12,324 10,869 54,613 8,902 9,272 5,877
-------- -------- -------- -------- -------- -------- -------- -------- -------- --------
Revenue from products
and services (d) $417,225 $462,255 $135,324 $136,546 $138,877 $136,871 $547,618 $143,329 $149,387 $158,903
Reimbursable Expenses
per EITF 01-14 (d) 6,069 38,131 9,657 8,488 9,420 9,827 37,392 8,950 8,139 10,816
-------- -------- -------- -------- -------- -------- -------- -------- -------- --------
Total Revenue $423,294 $500,386 $144,981 $145,034 $148,297 $146,698 $585,010 $152,279 $157,526 $169,719
======== ======== ======== ======== ======== ======== ======== ======== ======== ========
Insurance Services
Operating Income (a) $ 66,941 $ 78,335 $ 21,054 $ 23,212 $ 24,472 $ 26,811 $ 95,549 $ 27,257 $ 30,410 $ 31,945
Business &
Government Svcs
Operating Income (a) 12,613 9,006 3,576 8,934 11,832 14,405 38,747 13,323 13,330 13,633
Marketing Services
Operating Income (a) 1,819 12,856 4,939 5,989 6,084 6,448 23,460 5,390 6,772 7,077
Royalty Operating
Income 3,903 3,483 885 1,017 953 949 3,804 1,051 1,191 1,011
Income from
Reimbursable
Expenses -- -- -- -- -- -- -- -- -- --
Divested & Discon-
tinued Operating
Income (a) (b) 14,947 16,651 4,095 2,296 2,078 781 9,250 (279) 67 (464)
Corporate (27,611) (33,619) (8,453) (11,664) (11,580) (11,806) (43,503) (10,843) (13,929) (12,525)
-------- -------- -------- -------- -------- -------- -------- -------- -------- --------
- ------------------------------------------------------------------------------------------------------------------------------------
Operating Income
before other
operating charges $ 72,612 $ 86,712 $ 26,096 $ 29,784 $ 33,839 $ 37,588 $127,307 $ 35,899 $ 37,841 $ 40,677
======== ======== ======== ======== ======== ======== ======== ======== ======== ========
- ------------------------------------------------------------------------------------------------------------------------------------
Other operating
charges (e) 5,049 513 -- (28,419) -- -- (28,419) (17,865) -- (10,853)
-------- -------- -------- -------- -------- -------- -------- -------- -------- --------
OPERATING INCOME $ 77,661 $ 87,225 $ 26,096 $ 1,365 $ 33,839 $ 37,588 $ 98,888 $ 18,034 $ 37,841 $ 29,824
======== ======== ======== ======== ======== ======== ======== ======== ======== ========
- ------------------------------------------------------------------------------------------------------------------------------------
CORE REVENUE GROWTH
RATE 28.0% 23.8% 14.7% 13.6% 20.9%
- ------------------------------------------------------------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------------------------------------------------------
OPERATING MARGINS
Insurance Services 45.2% 48.6% 45.9% 49.0% 50.2% 56.1% 50.3% 50.2% 53.1% 54.4%
Business & Government
Services 8.4% 4.8% 6.6% 15.3% 19.6% 24.1% 16.6% 21.5% 20.5% 19.3%
Marketing Services 28.7% 29.9% 32.6% 37.9% 38.3% 38.6% 36.9% 32.5% 41.9% 32.1%
Divested &
Discontinued Lines* 14.1% 26.0% 22.5% 17.3% 16.9% 7.2% 16.9% -3.1% 0.7% -7.9%
ChoicePoint excluding
other operating
charges as a
percentage of
revenue from
products and
services (d) 17.4% 18.8% 19.3% 21.8% 24.4% 27.5% 23.2% 25.0% 25.3% 25.6%
OPERATING INCOME AS
A PERCENTAGE OF
REVENUE FROM
PRODUCTS AND
SERVICES (D) 18.6% 18.9% 19.3% 1.0% 24.4% 27.5% 18.1% 12.6% 25.3% 18.8%
- ------------------------------------------------------------------------------------------------------------------------------------
TOTAL TOTAL
Q4 2001 2001 Q1 2002 Q2 2002 Q3 2002 Q4 2002 2002 Q1 2003 Q2 2003
-------- -------- -------- -------- -------- -------- -------- -------- --------
Insurance Services
Revenue $57,447 $227,727 $ 64,140 $ 67,031 $ 70,495 $ 68,616 $270,282 $ 76,134 $77,922
Business &
Government
Svcs Revenue 70,005 267,409 69,116 75,713 79,307 84,625 308,761 80,995 83,792
Marketing Services
Revenue 21,671 76,461 23,717 27,950 27,467 26,699 105,833 25,573 25,676
Royalty Revenue 1,714 6,808 1,597 1,542 1,563 1,153 5,855 1,303 1,389
-------- -------- -------- -------- -------- -------- -------- -------- --------
Core Revenue (c) $150,837 $578,405 $158,570 $172,236 $178,832 $181,093 $690,731 $184,005 $188,779
======== ======== ======== ======== ======== ======== ======== ======== ========
Revenue from
Divested & Discon-
tinued Lines (b) 192 24,243 72 -- -- -- 72 -- --
-------- -------- -------- -------- -------- -------- -------- -------- --------
Revenue from products
and services (d) $151,029 $602,648 $158,642 $172,236 $178,832 $181,093 $690,803 $184,005 188,779
Reimbursable Expenses
per EITF 01-14 (d) 10,123 38,028 10,019 9,923 10,098 8,480 38,520 10,944 10,470
-------- -------- -------- -------- -------- -------- -------- -------- --------
Total Revenue $161,152 $640,676 $168,661 $182,159 $188,930 $189,573 $729,323 $194,949 $199,249
======== ======== ======== ======== ======== ======== ======== ======== ========
Insurance Services
Operating Income (a) $30,895 $120,507 $ 35,024 $ 35,502 $ 37,163 $ 36,950 $144,639 $ 42,436 $44,364
Business & Government
Svcs Operating
Income (a) 15,917 56,203 12,520 17,293 19,549 20,062 69,424 15,571 18,585
Marketing Services
Operating Income (a) 7,152 26,391 7,405 9,232 8,509 7,720 32,866 6,908 7,374
Royalty Operating
Income 1,147 4,400 997 933 932 464 3,326 646 626
Income from
Reimbursable Expenses -- -- -- -- -- -- -- -- --
Divested & Discon-
tinued Operating
Income (a) (b) (292) (968) (206) -- -- -- (206) --
Corporate (11,981) (49,278) (11,518) (16,885) (16,163) (15,619) (60,185) (13,758) (16,469)
-------- -------- -------- -------- -------- -------- -------- -------- --------
- ---------------------------------------------------------------------------------------------------------------------------
Operating Income
before other
operating charges $42,838 $157,255 $ 44,222 $ 46,075 $ 49,990 $ 49,577 $189,864 $ 51,803 $ 54,480
======== ======== ======== ======== ======== ======== ======== ======== ========
- ---------------------------------------------------------------------------------------------------------------------------
Other operating
charges (e) -- (28,718) -- (7,342) -- -- (7,342) -- (19,817)
-------- -------- -------- -------- -------- -------- -------- -------- --------
OPERATING INCOME $42,838 $128,537 $ 44,222 $ 38,733 $ 49,990 $ 49,577 $182,522 $ 51,803 $ 34,663
======== ======== ======== ======== ======== ======== ======== ======== ========
- ---------------------------------------------------------------------------------------------------------------------------
CORE REVENUE
GROWTH RATE 19.7% 17.3% 18.0% 22.9% 16.9% 20.1% 19.4% 16.0% 9.6%
- ---------------------------------------------------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------------------------------------------------------
OPERATING MARGINS
Insurance Services 53.8% 52.9% 54.6% 53.0% 52.7% 53.9% 53.5% 55.7% 56.9%
Business & Government
Services 22.7% 21.0% 18.1% 22.8% 24.6% 23.7% 22.5% 19.2% 22.2%
Marketing Services 33.0% 34.5% 31.2% 33.0% 31.0% 28.9% 31.1% 27.0% 28.7%
Divested & Discon-
tinued Lines* -152.1% -4.0% -286.1% n/a n/a n/a -286.1% n/a n/a
ChoicePoint excluding
other operating
charges as a
percentage of revenue
from products and
services (d) 28.4% 26.1% 27.9% 26.8% 28.0% 27.4% 27.5% 28.2% 28.9%
OPERATING INCOME AS A
PERCENTAGE OF REVENUE
FROM PRODUCTS AND
SERVICES (D) 28.4% 21.3% 27.9% 22.5% 28.0% 27.4% 26.4% 28.2% 18.4%
- ---------------------------------------------------------------------------------------------------------------------------
(a) FASB Statement No. 142 discontinued the amortization of goodwill as of
January 1, 2002. For comparison purposes, the above data excludes
goodwill amortization in 1998-2001 as if FASB No. 142 was effective
January 1, 1998.
(b) Divested & Discontinued Lines represents products and lines of
businesses that were discontinued or divested, but which do not qualify
for discontinued operations accounting.
(c) Core revenue represents revenue from continuing business lines and is
used by management to assess and manage its on-going businesses and to
determine operational incentive awards
(d) Reimbursable expenses represent certain reimbursed out-of-pocket
expenses that are presented on a gross basis in accordance with EITF
01-14. As these expenses are fully reimbursed, without mark-up, by our
clients and in a majority of cases prepaid by the customers, there is
no impact on operating income, net income, earnings per share, cash
flows or the balance sheet; therefore, we have excluded the impact of
these expenses in the calculation of operating margins, core revenue
and internal growth
(e) Other operating charges include merger-related costs, unusual items,
realignment charges and gain (loss) on sale of business that management
excludes in its assessments of operating results and in determining
operational incentive awards
CHOICEPOINT INC.
OPERATING RESULTS BY QUARTER
TOTAL TOTAL TOTAL
1998 1999 Q1 2000 Q2 2000 Q3 2000 Q4 2000 2000 Q1 2001 Q2 2001 Q3 2001
-------- -------- -------- -------- -------- -------- -------- -------- -------- --------
Insurance Services
Revenue $148,017 $161,056 $ 45,893 $ 47,357 $ 48,752 $ 47,820 $189,822 $ 54,263 $ 57,283 $ 58,734
Business & Government
Svcs Revenue 150,169 187,999 54,583 58,480 60,316 59,891 233,270 61,921 64,875 70,608
Marketing Services
Revenue 6,340 42,946 15,135 15,811 15,881 16,722 63,549 16,586 16,150 22,054
Royalty Revenue 6,636 6,219 1,543 1,648 1,604 1,569 6,364 1,657 1,807 1,630
-------- -------- -------- -------- -------- -------- -------- -------- -------- --------
Core Revenue (b) $311,162 $398,220 $117,154 $123,296 $126,553 $126,002 $493,005 $134,427 $140,115 $153,026
======== ======== ======== ========== ======== ======== ======== ======== ======== ========
Revenue from Divested
& Discontinued
Lines (a) 106,063 64,035 18,170 13,250 12,324 10,869 54,613 8,902 9,272 5,877
-------- -------- -------- -------- -------- -------- -------- -------- -------- --------
Revenue from products
and services (c) $417,225 $462,255 $135,324 $136,546 $138,877 $136,871 $547,618 $143,329 $149,387 $158,903
Reimbursable Expenses
per EITF 01-14 (c) 6,069 38,131 9,657 8,488 9,420 9,827 37,392 8,950 8,139 10,816
-------- -------- -------- -------- -------- -------- -------- -------- -------- --------
Total Revenue $423,294 $500,386 $144,981 $145,034 $148,297 $146,698 $585,010 $152,279 $157,526 $169,719
======== ======== ======== ======== ======== ======== ======== ======== ======== ========
Insurance Services
Operating Income $ 66,387 $77,604 $ 20,923 $ 23,055 $24,317 $ 26,597 $ 94,892 $ 27,004 $ 30,125 $ 31,663
Business & Government
Svcs Operating
Income 7,998 2,285 1,200 6,738 9,429 12,010 29,377 10,773 10,497 10,769
Marketing Services
Operating Income 1,269 10,526 3,912 4,923 5,026 5,424 19,285 4,338 5,721 6,025
Royalty Operating
Income 3,903 3,483 885 1,017 953 949 3,804 1,051 1,191 1,011
Income from
Reimbursable
Expenses -- -- -- -- -- -- -- -- -- --
Divested & Discon-
tinued Operating
Income (a) 13,743 15,446 3,794 1,995 1,776 480 8,045 (580) (234) (665)
Corporate (27,611) (33,619) (8,453) (11,664) (11,580) (11,806) (43,503) (10,843) (13,929) (12,525)
-------- -------- -------- -------- -------- -------- -------- -------- -------- --------
- ------------------------------------------------------------------------------------------------------------------------------------
Operating Income
before other
operating charges $ 65,689 $ 75,725 $ 22,261 $ 26,064 $ 29,921 $ 33,654 $111,900 $ 31,743 $ 33,371 $ 36,278
======== ======== ======== ======== ======== ======== ======== ======== ======== ========
- ------------------------------------------------------------------------------------------------------------------------------------
Other operating
charges (d) 5,049 513 -- (28,419) -- -- (28,419) (17,865) -- (10,853)
-------- -------- -------- -------- -------- -------- -------- -------- -------- --------
OPERATING INCOME $ 70,738 $ 76,238 $ 22,261 $ (2,355) $ 29,921 $ 33,654 $ 83,481 $ 13,878 $ 33,371 $ 25,425
======== ======== ======== ======== ======== ======== ======== ======== ======== ========
- ------------------------------------------------------------------------------------------------------------------------------------
OPERATING MARGINS
Insurance Services 44.9% 48.2% 45.6% 48.7% 49.9% 55.6% 50.0% 49.8% 52.6% 53.9%
Business & Government
Services 5.3% 1.2% 2.2% 11.5% 15.6% 20.1% 12.6% 17.4% 16.2% 15.3%
Marketing Services 20.0% 24.5% 25.8% 31.1% 31.6% 32.4% 30.3% 26.2% 35.4% 27.3%
Divested & Discon-
tinued Lines (a) 13.0% 24.1% 20.9% 15.1% 14.4% 4.4% 14.7% -6.5% -2.5% -11.3%
ChoicePoint excluding
other operating
charges as a
percentage of revenue
from products and
services (c) 15.7% 16.4% 16.5% 19.1% 21.5% 24.6% 20.4% 22.1% 22.3% 22.8%
Operating income as a
percentage of revenue
from products and
services (c) 17.0% 16.5% 16.5% -1.7% 21.5% 4.6% 15.2% 9.7% 22.3% 16.0%
OPERATING INCOME AS
A PERCENTAGE OF
TOTAL REVENUE 16.7% 15.2% 15.4% 1.6% 20.2% 22.9% 14.3% 9.1% 21.2% 15.0%
- ------------------------------------------------------------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------------------------------------------------------
INTERNAL GROWTH
RATES (E)
Insurance Services 21.9% 18.4% 22.0% 18.7% 17.6% 14.1% 18.0% 14.9% 15.8% 16.0%
Business & Government
Services 19.9% 15.0% 15.9% 10.6% 17.7% 12.9% 14.2% 8.6% 1.4% -3.8%
Marketing Services n/a n/a 23.9% 21.4% 12.1% 12.9% 17.0% 9.6% 2.1% 2.3%
Total ChoicePoint 20.3% 16.1% 18.8% 14.9% 16.9% 13.2% 15.8% 11.2% 7.1% 4.6%
- ------------------------------------------------------------------------------------------------------------------------------------
TOTAL TOTAL
Q4 2001 2001 Q1 2002 Q2 2002 Q3 2002 Q4 2002 2002 Q1 2003 Q2 2003
-------- -------- -------- -------- -------- -------- -------- -------- --------
Insurance Services
Revenue $ 57,447 $227,727 $ 64,140 $ 67,031 $ 70,495 $ 68,616 $270,282 $ 76,134 $ 77,922
Business & Government
Svcs Revenue 70,005 267,409 69,116 75,713 79,307 84,625 308,761 80,995 83,792
Marketing Services
Revenue 21,671 76,461 23,717 27,950 27,467 26,699 105,833 25,573 25,676
Royalty Revenue 1,714 6,808 1,597 1,542 1,563 1,153 5,855 1,303 1,389
-------- -------- -------- -------- -------- -------- -------- -------- --------
Core Revenue (b) $150,837 $578,405 $158,570 $172,236 $178,832 $181,093 $690,731 $184,005 $188,779
======== ======== ======== ======== ======== ======== ======== ======== =======
Revenue from Divested
& Discontinued
Lines (a) 192 24,243 72 -- -- -- 72 -- --
-------- -------- -------- -------- -------- -------- -------- -------- --------
Revenue from products
and services (c) $151,029 $602,648 $158,642 $172,236 $178,832 $181,093 $690,803 $184,005 $188,779
Reimbursable Expenses
per EITF 01-14 (c) 10,123 38,028 10,019 9,923 10,098 8,480 38,520 10,944 10,470
-------- -------- -------- -------- -------- -------- -------- -------- --------
Total Revenue $161,152 $640,676 $168,661 $182,159 $188,930 $189,573 $729,323 $194,949 $199,249
======== ======== ======== ======== ======== ======== ======== ======== ========
Insurance Services
Operating Income $ 30,615 $119,407 $ 35,024 $ 35,502 $ 37,163 $ 36,950 $144,639 $42,436 $ 44,364
Business & Government
Svcs Operating
Income 13,050 45,089 12,520 17,293 19,549 20,062 69,424 15,571 18,585
Marketing Services
Operating Income 6,101 22,185 7,405 9,232 8,509 7,720 32,866 6,908 7,374
Royalty Operating
Income 1,147 4,400 997 933 932 464 3,326 646 626
Income from
Reimbursable
Expenses -- -- -- -- -- -- -- -- --
Divested & Discon-
tinued Operating
Income (a) (292) (1,771) (206) -- -- -- (206) --
Corporate (11,981) (49,278) (11,518) (16,885) (16,163) (15,619) (60,185) (13,758) (16,469)
-------- -------- -------- -------- -------- -------- -------- -------- --------
- --------------------------------------------------------------------------------------------------------------------------
Operating Income
before other
operating charges $ 38,640 $140,032 $ 44,222 $ 46,075 $ 49,990 $ 49,577 $189,864 $ 51,803 $ 54,480
======== ======== ======== ======== ======== ======== ======== ======== ========
- --------------------------------------------------------------------------------------------------------------------------
Other operating
charges (d) -- (28,718) -- (7,342) -- -- (7,342) -- (19,817)
-------- -------- -------- -------- -------- -------- -------- -------- --------
OPERATING INCOME $ 38,640 $111,314 $ 44,222 $ 38,733 $ 49,990 $ 49,577 $182,522 $ 51,803 $ 34,663
======== ======== ======== ======== ======== ======== ======== ======== ========
- --------------------------------------------------------------------------------------------------------------------------
OPERATING MARGINS
Insurance Services 53.3% 52.4% 54.6% 53.0% 52.7% 53.9% 53.5% 55.7% 56.9%
Business & Government
Services 18.6% 16.9% 18.1% 22.8% 24.6% 23.7% 22.5% 19.2% 22.2%
Marketing Services 28.2% 29.0% 31.2% 33.0% 31.0% 28.9% 31.1% 27.0% 28.7%
Divested & Discon-
tinued Lines (a) -152.1% -7.3% -286.1% n/a n/a n/a -286.1% n/a n/a
ChoicePoint excluding
other operating
charges as a
percentage of
revenue from
products and
services (c) 25.6% 23.2% 27.9% 26.8% 28.0% 27.4% 27.5% 28.2% 28.9%
Operating income as
a percentage of
revenue from
products and
services (c) 25.6% 18.5% 27.9% 22.5% 28.0% 27.4% 26.4% 28.2% 18.4%
OPERATING INCOME AS
A PERCENTAGE OF
TOTAL REVENUE 24.0% 17.4% 26.2% 21.3% 26.5% 26.2% 25.0% 26.6% 17.4%
- --------------------------------------------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------------------------------------------------
INTERNAL GROWTH
RATES (E)
Insurance Services 18.5% 16.3% 17.5% 17.0% 18.5% 18.0% 17.8% 17.2% 15.0%
Business & Government
Services -5.6% -0.1% -3.8% 5.6% 12.3% 17.6% 8.4% 3.9% -2.5%
Marketing Services -4.0% 2.3% 3.4% 5.4% 4.9% 6.7% 5.2% -2.4% -13.6%
Total ChoicePoint 4.0% 6.6% 5.7% 10.0% 13.4% 15.6% 11.4% 8.1% 2.4%
- --------------------------------------------------------------------------------------------------------------------------
(a) Divested & Discontinued Lines represents products and lines of
businesses that were discontinued or divested, but which do not qualify
for discontinued operations accounting.
(b) Core revenue represents revenue from continuing business lines and is
used by management to assess and manage its on-going businesses and to
determine operational incentive awards
(c) Reimbursable expenses represent certain reimbursed out-of-pocket
expenses that are presented on a gross basis in accordance with EITF
01-14. As these expenses are fully reimbursed, without mark-up, by our
clients and in a majority of cases prepaid by the customers, there is
no impact on operating income, net income, earnings per share, cash
flows or the balance sheet; therefore, we have excluded the impact of
these expenses in the calculation of operating margins, core revenue
and internal growth
(d) Other operating charges include merger-related costs, unusual items,
realignment charges and gain (loss) on sale of business that management
excludes in its assessments of operating results and in determining
operational incentive awards
(e) Internal revenue growth is the revenue growth from comparable business
units for the same period in the prior year and excludes revenue from
reimbursable expenses, acquisitions, divested and discontinued product
lines and discontinued operations. This measure is used by management
to analyze the performance of the business segments and as a criteria
component for incentive compensation awards.
CHOICEPOINT INC.
OPERATING RESULTS BY QUARTER
TOTAL TOTAL TOTAL
1998 1999 Q1 2000 Q2 2000 Q3 2000 Q4 2000 2000 Q1 2001 Q2 2001 Q3 2001
------- ------- ------- ------- ------- ------- -------- -------- ------- -------
NET INCOME $42,315 $42,197 $12,601 $(5,778) $17,513 $19,486 $ 43,822 $ 7,213 $19,921 $ 12
EPS $ 0.52 $ 0.52 $ 0.15 $ (0.07) $ 0.21 $ 0.23 $ 0.52 $ 0.08 $ 0.23 $ 0.00
Less:
Cumulative change
in accounting
principle, net -- -- -- -- -- -- -- -- -- --
Income from discon-
tinued operations,
net of tax 4,037 3,997 1,134 888 1,227 407 3,656 881 1,249 1,208
Gain on sale of
discontinued
operations, net -- -- -- -- -- -- -- -- -- --
------- ------- -------- ------- ------- ------- -------- ------- ------- -------
- ------------------------------------------------------------------------------------------------------------------------------------
Net income from
continuing operations $38,278 $38,200 $11,467 $(6,666) $16,286 $19,079 $ 40,166 $ 6,332 $18,672 $(1,196)
EPS from continuing
operations $ 0.47 $ 0.47 $ 0.14 $ (0.08) $ 0.19 $ 0.22 $ 0.48 $ 0.07 $ 0.21 $ (0.01)
- ------------------------------------------------------------------------------------------------------------------------------------
Add back: goodwill
amortization net of
taxes (a) 5,401 9,397 2,889 3,395 3,182 3,419 12,885 3,118 3,198 3,203
Pro forma Net income
from continuing
operations (a) $43,679 $47,597 $14,356 $(3,271) $19,468 $22,498 $ 53,051 $ 9,450 $21,870 $ 2,007
======= ======= ======= ======= ======= ======== ======== ======== ======= =======
Pro forma EPS from
continuing
operations (a) $ 0.54 $ 0.58 $ 0.17 $ (0.04) $ 0.23 $ 0.26 $ 0.63 $ 0.11 $ 0.25 $ 0.02
Add back:
Other operating
charges (b) (5,049) (513) -- 28,419 -- -- 28,419 17,865 -- 10,853
Tax provision
(benefit) related
to other operating
charges 2,114 (78) -- (8,604) -- -- (8,604) (6,655) -- 10,534
------- ------- ------- ------- ------- ------- -------- ------- ------- -------
- ------------------------------------------------------------------------------------------------------------------------------------
PRO FORMA INCOME
FROM CONTINUING
OPERATIONS EXCLUDING
OTHER OPERATING
CHARGES(A)(B) $40,744 $47,006 $14,356 $16,544 $19,468 $22,498 $ 72,866 $20,660 $21,870 $23,394
======= ======= ======= ======= ======= ======= ======== ======= ======= =======
PRO FORMA EPS FROM
CONTINUING OPERATIONS
EXCLUDING OTHER
OPERATING
CHARGES(A)(B) $ 0.51 $ 0.58 $ 0.178 $ 0.20 $ 0.23 $ 0.26 $ 0.87 $ 0.247 $ 0.25 $ 0.27
- ------------------------------------------------------------------------------------------------------------------------------------
Wtd Avg Shares 80,616 81,591 82,999 83,351 84,184 85,431 84,139 86,264 86,873 87,457
------- ------- --------
TOTAL TOTAL
Q4 2001 2001 Q1 2002 Q2 2002 Q3 2002 Q4 2002 2002 Q1 2003 Q2 2003
------- ------- ------- ------- ------- ------- -------- ------- --------
NET INCOME $23,188 $50,334 $ 2,998 $24,113 $31,262 $31,454 $ 89,827 $65,175 $20,853
EPS $ 0.26 $ 0.58 $ 0.03 $ 0.27 $0.35 $ 0.35 $ 1.01 $ 0.73 $ 0.23
Less:
Cumulative change
in accounting
principle, net -- -- (24,416) -- -- -- (24,416) -- $ --
Income from discon-
tinued operations,
net of tax 1,294 4,632 1,575 1,707 1,704 1,585 6,571 991 --
Gain on sale of
discontinued
operations, net -- -- -- -- -- -- -- 32,893 --
------- ------- ------- ------- ------- ------- -------- ------- -------
- --------------------------------------------------------------------------------------------------------------------------
Net income from
continuing operations $21,894 $45,702 $25,839 $22,406 $29,558 $29,869 $107,672 $31,291 $20,853
EPS from continuing
operations $ 0.25 $ 0.52 $ 0.29 $ 0.25 $ 0.33 $ 0.34 $ 1.21 $ 0.35 $ 0.23
- --------------------------------------------------------------------------------------------------------------------------
Add back: goodwill
amortization net of
taxes (a) 3,119 12,638 -- -- -- -- -- -- --
Pro forma Net income
from continuing
operations (a) $25,013 $58,340 $25,839 $22,406 $29,558 $29,869 $107,672 $31,291 $20,853
======= ======= ======= ======= ======= ======= ======== ======= =======
Pro forma EPS from
continuing
operations (a) $ 0.28 $ 0.67 $ 0.29 $ 0.25 $ 0.33 $ 0.34 $ 1.21 $ 0.35 $ 0.23
Add back:
Other operating
charges (b) -- 28,718 -- 7,342 -- -- 7,342 -- 19,817
Tax provision
(benefit) related
to other operating
charges -- 3,879 -- (2,818) -- -- (2,818) -- (7,609)
------- ------- ------- ------- ------- ------- -------- ------- -------
- --------------------------------------------------------------------------------------------------------------------------
PRO FORMA INCOME
FROM CONTINUING
OPERATIONS EXCLUDING
OTHER OPERATING
CHARGES(A)(B) $25,013 $90,937 $25,839 $26,930 $29,558 $29,869 $112,196 $31,291 $33,061
======= ======= ======= ======= ======= ======= ======== ======= =======
PRO FORMA EPS FROM
CONTINUING OPERATIONS
EXCLUDING OTHER
OPERATING
CHARGES(A)(B) $ 0.28 $ 1.04 $ 0.29 $ 0.30 $ 0.33 $ 0.34 $ 1.26 $ 0.35 $ 0.37
- --------------------------------------------------------------------------------------------------------------------------
Wtd Avg Shares 88,101 87,151 88,969 89,692 89,612 89,064 89,194 89,374 89,354
------- --------
(a) FASB Statement No. 142 discontinued the amortization of goodwill as of
January 1, 2002. For comparison purposes, the above data excludes
goodwill amortization in 1998-2001 as if FASB No. 142 was effective
January 1, 1998.
(b) Other operating charges include merger-related costs, unusual items,
realignment charges and gain (loss) on sale of business that management
excludes in its assessments of operating results and in determining
operational incentive awards and include the following components which
are more fully described in our Annual Report on Form 10-K for the
applicable years:
TOTAL TOTAL TOTAL
1998 1999 Q1 2000 Q2 2000 Q3 2000 Q4 2000 2000 Q1 2001 Q2 2001 Q3 2001
------ ------ ------- ------- ------- ------- ------ ------- ------- -------
Merger transaction
costs -- -- -- 11,579 -- -- 11,579 -- -- --
Merger personnel
related costs 838 -- -- 3,780 -- -- 3,780 1,832 -- --
Other merger
integration costs -- -- -- 3,629 -- -- 3,629 2,433 -- --
Write down of
minority
investments -- 817 -- -- -- -- -- -- -- --
Asset impairments 2,920 732 -- 6,954 -- -- 6,954 12,693 -- --
Nonmerger severance -- 451 -- 1,823 -- -- 1,885 838 -- --
Other one-time
charges -- -- -- 654 -- -- 592 69 -- --
(Gain) loss on
sale of business (8,807) (2,513) -- -- -- -- -- -- -- 10,853
------ ------ --- ------ --- --- ------ ------ --- ------
Total other operating
charges (5,049) (513) -- 28,419 -- -- 28,419 17,865 -- 10,853
====== ====== === ====== === === ====== ====== === ======
TOTAL TOTAL
Q4 2001 2001 Q1 2002 Q2 2002 Q3 2002 Q4 2002 2002 Q1 2003 Q2 2003
------- ------ ------- ------- ------- ------- ----- ------- -------
Merger transaction
costs -- -- -- -- -- -- -- -- --
Merger personnel
related costs -- 1,832 -- -- -- -- -- -- --
Other merger
integration costs -- 2,433 -- -- -- -- -- -- --
Write down of
minority
investments -- - -- 2,370 -- -- 2,370 -- --
Asset impairments -- 12,693 -- 2,985 -- -- 2,985 -- 12,490
Nonmerger severance -- 838 -- 567 -- -- 567 -- 2,848
Other one-time
charges -- 69 -- 1,420 -- -- 1,420 -- 4,479
(Gain) loss on
sale of business -- 10,853 -- -- -- -- -- -- --
--- ------ -- ----- -- -- ----- -- ------
Total other operating
charges -- 28,718 -- 7,342 -- -- 7,342 -- 19,817
=== ====== == ===== == == ====== == ======