.
.
.
Exhibit 99.2
CHOICEPOINT INC.
OPERATING RESULTS BY QUARTER
PROFORMA OPERATING INCOME WITHOUT GOODWILL AMORTIZATION (A)
Total Total Total
1998 1999 2000 Q1 2001 Q2 2001 Q3 2001
---- ---- ---- ------- ------- -------
Insurance Services Revenue $ 148,017 $ 161,056 $ 189,822 $ 54,263 $ 57,283 $ 58,734
Business & Government Svcs Revenue 150,169 187,999 233,270 61,921 64,875 70,608
Marketing Services Revenue 6,340 42,946 63,549 16,586 16,150 22,054
Royalty Revenue 6,636 6,219 6,364 1,657 1,807 1,630
--------- --------- --------- --------- --------- ---------
Core Revenue (c) $ 311,162 $ 398,220 $ 493,005 $ 134,427 $ 140,115 $ 153,026
========= ========= ========= ========= ========= =========
Revenue from Divested & Discontinued Lines (b) 106,063 64,035 54,613 8,902 9,272 5,877
--------- --------- --------- --------- --------- ---------
Revenue from products and services (d) $ 417,225 $ 462,255 $ 547,618 $ 143,329 $ 149,387 $ 158,903
Reimbursable Expenses per EITF 01-14 (d) 6,069 38,131 37,392 8,950 8,139 10,816
--------- --------- --------- --------- --------- ---------
Total Revenue $ 423,294 $ 500,386 $ 585,010 $ 152,279 $ 157,526 $ 169,719
========= ========= ========= ========= ========= =========
Insurance Services Operating Income (a) $ 66,941 $ 78,335 $ 95,549 $ 27,257 $ 30,410 $ 31,945
Business & Government Svcs Operating Income (a) 12,613 9,006 38,747 13,323 13,330 13,633
Marketing Services Operating Income (a) 1,819 12,856 23,460 5,390 6,772 7,077
Royalty Operating Income 3,903 3,483 3,804 1,051 1,191 1,011
Income from Reimbursable Expenses -- -- -- -- -- --
Divested & Discontinued Operating Income (a) (b) 14,947 16,651 9,250 (279) 67 (464)
Corporate (27,611) (33,619) (43,503) (10,843) (13,929) (12,525)
--------- --------- --------- --------- --------- ---------
Operating Income before other operating charges $ 72,612 $ 86,712 $ 127,307 $ 35,899 $ 37,841 $ 40,677
========= ========= ========= ========= ========= =========
Other operating charges (e) 5,049 513 (28,419) (17,865) -- (10,853)
--------- --------- --------- --------- --------- ---------
OPERATING INCOME $ 77,661 $ 87,225 $ 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% 50.3% 50.2% 53.1% 54.4%
Business & Government Services 8.4% 4.8% 16.6% 21.5% 20.5% 19.3%
Marketing Services 28.7% 29.9% 36.9% 32.5% 41.9% 32.1%
Divested & Discontinued Lines* 14.1% 26.0% 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% 23.2% 25.0% 25.3% 25.6%
OPERATING INCOME AS A PERCENTAGE OF REVENUE
FROM PRODUCTS AND SERVICES (D) 18.6% 18.9% 18.1% 12.6% 25.3% 18.8%
Total
Q4 2001 2001 Q1 2002 Q2 2002 Q3 2002 Q4 2002
------- ---- ------- ------- ------- -------
Insurance Services Revenue $ 57,447 $ 227,727 $ 64,140 $ 67,031 $ 70,495 $ 68,616
Business & Government Svcs Revenue 70,005 267,409 69,116 75,713 79,307 84,625
Marketing Services Revenue 21,671 76,461 23,717 27,950 27,467 26,699
Royalty Revenue 1,714 6,808 1,597 1,542 1,563 1,153
--------- --------- --------- --------- --------- ---------
Core Revenue (c) $ 150,837 $ 578,405 $ 158,570 $ 172,236 $ 178,832 $ 181,093
========= ========= ========= ========= ========= =========
Revenue from Divested & Discontinued Lines (b) 192 24,243 72 -- -- --
--------- --------- --------- --------- --------- ---------
Revenue from products and services (d) $ 151,029 $ 602,648 $ 158,642 $ 172,236 $ 178,832 $ 181,093
Reimbursable Expenses per EITF 01-14 (d) 10,123 38,028 10,019 9,923 10,098 8,480
--------- --------- --------- --------- --------- ---------
Total Revenue $ 161,152 $ 640,676 $ 168,661 $ 182,159 $ 188,930 $ 189,573
========= ========= ========= ========= ========= =========
Insurance Services Operating Income (a) $ 30,895 $ 120,507 $ 35,024 $ 35,502 $ 37,163 $ 36,950
Business & Government Svcs Operating Income (a) 15,917 56,203 12,520 17,293 19,549 20,062
Marketing Services Operating Income (a) 7,152 26,391 7,405 9,232 8,509 7,720
Royalty Operating Income 1,147 4,400 997 933 932 464
Income from Reimbursable Expenses -- -- -- -- -- --
Divested & Discontinued Operating Income (a) (b) (292) (968) (206) -- -- --
Corporate (11,981) (49,278) (11,518) (16,885) (16,163) (15,619)
--------- --------- --------- --------- --------- ---------
Operating Income before other operating charges $ 42,838 $ 157,255 $ 44,222 $ 46,075 $ 49,990 $ 49,577
========= ========= ========= ========= ========= =========
Other operating charges (e) -- (28,718) -- (7,342) -- --
--------- --------- --------- --------- --------- ---------
OPERATING INCOME $ 42,838 $ 128,537 $ 44,222 $ 38,733 $ 49,990 $ 49,577
========= ========= ========= ========= ========= =========
CORE REVENUE GROWTH RATE 19.7% 17.3% 18.0% 22.9% 16.9% 20.1%
OPERATING MARGINS
Insurance Services 53.8% 52.9% 54.6% 53.0% 52.7% 53.9%
Business & Government Services 22.7% 21.0% 18.1% 22.8% 24.6% 23.7%
Marketing Services 33.0% 34.5% 31.2% 33.0% 31.0% 28.9%
Divested & Discontinued Lines* -152.1% -4.0% -286.1% n/a 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%
OPERATING INCOME AS A PERCENTAGE OF REVENUE
FROM PRODUCTS AND SERVICES (D) 28.4% 21.3% 27.9% 22.5% 28.0% 27.4%
Total
2002 Q1 2003 Q2 2003 Q3 2003
---- ------- ------- -------
Insurance Services Revenue $ 270,282 $ 76,134 $ 77,922 $ 78,100
Business & Government Svcs Revenue 308,761 80,995 83,792 87,080
Marketing Services Revenue 105,833 25,573 25,676 22,631
Royalty Revenue 5,855 1,303 1,389 1,305
--------- --------- --------- ---------
Core Revenue (c) $ 690,731 $ 184,005 $ 188,779 $ 189,116
========= ========= ========= =========
Revenue from Divested & Discontinued Lines (b) 72 -- -- --
--------- --------- --------- ---------
Revenue from products and services (d) $ 690,803 $ 184,005 $ 188,779 $ 189,116
Reimbursable Expenses per EITF 01-14 (d) 38,520 10,944 10,470 12,402
--------- --------- --------- ---------
Total Revenue $ 729,323 $ 194,949 $ 199,249 $ 201,518
========= ========= ========= =========
Insurance Services Operating Income (a) $ 144,639 $ 42,436 $ 44,364 $ 43,998
Business & Government Svcs Operating Income (a) 69,424 15,571 18,585 18,652
Marketing Services Operating Income (a) 32,866 6,908 7,374 3,580
Royalty Operating Income 3,326 646 626 416
Income from Reimbursable Expenses -- -- -- --
Divested & Discontinued Operating Income (a) (b) (206) --
Corporate (60,185) (13,758) (16,469) (14,850)
--------- --------- --------- ---------
Operating Income before other operating charges $ 189,864 $ 51,803 $ 54,480 $ 51,796
========= ========= ========= =========
Other operating charges (e) (7,342) -- (19,817) (4,022)
--------- --------- --------- ---------
OPERATING INCOME $ 182,522 $ 51,803 $ 34,663 $ 47,774
========= ========= ========= =========
CORE REVENUE GROWTH RATE 19.4% 16.0% 9.6% 5.8%
OPERATING MARGINS
Insurance Services 53.5% 55.7% 56.9% 56.3%
Business & Government Services 22.5% 19.2% 22.2% 21.4%
Marketing Services 31.1% 27.0% 28.7% 15.8%
Divested & Discontinued Lines* -286.1% n/a n/a n/a
ChoicePoint excluding other operating charges, as a
percentage of revenue from products and services (d) 27.5% 28.2% 28.9% 27.4%
OPERATING INCOME AS A PERCENTAGE OF REVENUE
FROM PRODUCTS AND SERVICES (D) 26.4% 28.2% 18.4% 25.3%
(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
1998 1999 Q1 2000 Q2 2000 Q3 2000 Q4 2000
---- ---- ------- ------- ------- -------
Insurance Services Revenue $ 148,017 $ 161,056 $ 45,893 $ 47,357 $ 48,752 $ 47,820
Business & Government Svcs Revenue 150,169 187,999 54,583 58,480 60,316 59,891
Marketing Services Revenue 6,340 42,946 15,135 15,811 15,881 16,722
Royalty Revenue 6,636 6,219 1,543 1,648 1,604 1,569
--------- --------- --------- --------- --------- ---------
Core Revenue (b) $ 311,162 $ 398,220 $ 117,154 $ 123,296 $ 126,553 $ 126,002
========= ========= ========= ========= ========= =========
Revenue from Divested & Discontinued Lines (a) 106,063 64,035 18,170 13,250 12,324 10,869
--------- --------- --------- --------- --------- ---------
Revenue from products and services (c) $ 417,225 $ 462,255 $ 135,324 $ 136,546 $ 138,877 $ 136,871
Reimbursable Expenses per EITF 01-14 (c) 6,069 38,131 9,657 8,488 9,420 9,827
--------- --------- --------- --------- --------- ---------
Total Revenue $ 423,294 $ 500,386 $ 144,981 $ 145,034 $ 148,297 $ 146,698
========= ========= ========= ========= ========= =========
Insurance Services Operating Income $ 66,387 $ 77,604 $ 20,923 $ 23,055 $ 24,317 $ 26,597
Business & Government Svcs Operating Income 7,998 2,285 1,200 6,738 9,429 12,010
Marketing Services Operating Income 1,269 10,526 3,912 4,923 5,026 5,424
Royalty Operating Income 3,903 3,483 885 1,017 953 949
Income from Reimbursable Expenses -- -- -- -- -- --
Divested & Discontinued Operating Income (a) 13,743 15,446 3,794 1,995 1,776 480
Corporate (27,611) (33,619) (8,453) (11,664) (11,580) (11,806)
--------- --------- --------- --------- --------- ---------
Operating Income before other operating charges $ 65,689 $ 75,725 $ 22,261 $ 26,064 $ 29,921 $ 33,654
========= ========= ========= ========= ========= =========
Other operating charges (d) 5,049 513 -- (28,419) -- --
--------- --------- --------- --------- --------- ---------
OPERATING INCOME $ 70,738 $ 76,238 $ 22,261 $ (2,355) $ 29,921 $ 33,654
========= ========= ========= ========= ========= =========
OPERATING MARGINS
Insurance Services 44.9% 48.2% 45.6% 48.7% 49.9% 55.6%
Business & Government Services 5.3% 1.2% 2.2% 11.5% 15.6% 20.1%
Marketing Services 20.0% 24.5% 25.8% 31.1% 31.6% 32.4%
Divested & Discontinued Lines (a) 13.0% 24.1% 20.9% 15.1% 14.4% 4.4%
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%
OPERATING INCOME AS A PERCENTAGE OF REVENUE
FROM PRODUCTS AND SERVICES (C) 17.0% 16.5% 16.5% -1.7% 21.5% 24.6%
OPERATING INCOME AS A PERCENTAGE OF TOTAL REVENUE 16.7% 15.2% 15.4% -1.6% 20.2% 22.9%
INTERNAL GROWTH RATES (E)
Insurance Services 21.9% 18.4% 22.0% 18.7% 17.6% 14.1%
Business & Government Services 19.9% 15.0% 15.9% 10.6% 17.7% 12.9%
Marketing Services n/a n/a 23.9% 21.4% 12.1% 12.9%
Total ChoicePoint 20.3% 16.1% 18.8% 14.9% 16.9% 13.2%
Total Total
2000 Q1 2001 Q2 2001 Q3 2001 Q4 2001 2001
---- ------- ------- ------- ------- ----
Insurance Services Revenue $ 189,822 $ 54,263 $ 57,283 $ 58,734 $ 57,447 $ 227,727
Business & Government Svcs Revenue 233,270 61,921 64,875 70,608 70,005 267,409
Marketing Services Revenue 63,549 16,586 16,150 22,054 21,671 76,461
Royalty Revenue 6,364 1,657 1,807 1,630 1,714 6,808
--------- --------- --------- --------- --------- ---------
Core Revenue (b) $ 493,005 $ 134,427 $ 140,115 $ 153,026 $ 150,837 $ 578,405
========= ========= ========= ========= ========= =========
Revenue from Divested & Discontinued Lines (a) 54,613 8,902 9,272 5,877 192 24,243
--------- --------- --------- --------- --------- ---------
Revenue from products and services (c) $ 547,618 $ 143,329 $ 149,387 $ 158,903 $ 151,029 $ 602,648
Reimbursable Expenses per EITF 01-14 (c) 37,392 8,950 8,139 10,816 10,123 38,028
--------- --------- --------- --------- --------- ---------
Total Revenue $ 585,010 $ 152,279 $ 157,526 $ 169,719 $ 161,152 $ 640,676
========= ========= ========= ========= ========= =========
Insurance Services Operating Income $ 94,892 $ 27,004 $ 30,125 $ 31,663 $ 30,615 $ 119,407
Business & Government Svcs Operating Income 29,377 10,773 10,497 10,769 13,050 45,089
Marketing Services Operating Income 19,285 4,338 5,721 6,025 6,101 22,185
Royalty Operating Income 3,804 1,051 1,191 1,011 1,147 4,400
Income from Reimbursable Expenses -- -- -- -- -- --
Divested & Discontinued Operating Income (a) 8,045 (580) (234) (665) (292) (1,771)
Corporate (43,503) (10,843) (13,929) (12,525) (11,981) (49,278)
--------- --------- --------- --------- --------- ---------
Operating Income before other operating charges $ 111,900 $ 31,743 $ 33,371 $ 36,278 $ 38,640 $ 140,032
========= ========= ========= ========= ========= =========
Other operating charges (d) (28,419) (17,865) -- (10,853) -- (28,718)
--------- --------- --------- --------- --------- ---------
OPERATING INCOME $ 83,481 $ 13,878 $ 33,371 $ 25,425 $ 38,640 $ 111,314
========= ========= ========= ========= ========= =========
OPERATING MARGINS
Insurance Services 50.0% 49.8% 52.6% 53.9% 53.3% 52.4%
Business & Government Services 12.6% 17.4% 16.2% 15.3% 18.6% 16.9%
Marketing Services 30.3% 26.2% 35.4% 27.3% 28.2% 29.0%
Divested & Discontinued Lines (a) 14.7% -6.5% -2.5% -11.3% -152.1% -7.3%
ChoicePoint excluding other operating charges, as a
percentage of revenue from products and services (c) 20.4% 22.1% 22.3% 22.8% 25.6% 23.2%
OPERATING INCOME AS A PERCENTAGE OF REVENUE
FROM PRODUCTS AND SERVICES (C) 15.2% 9.7% 22.3% 16.0% 25.6% 18.5%
OPERATING INCOME AS A PERCENTAGE OF TOTAL REVENUE 14.3% 9.1% 21.2% 15.0% 24.0% 17.4%
INTERNAL GROWTH RATES (E)
Insurance Services 18.0% 14.9% 15.8% 16.0% 18.5% 16.3%
Business & Government Services 14.2% 8.6% 1.4% -3.8% -5.6% -0.1%
Marketing Services 17.0% 9.6% 2.1% 2.3% -4.0% 2.3%
Total ChoicePoint 15.8% 11.2% 7.1% 4.6% 4.0% 6.6%
Total
Q1 2002 Q2 2002 Q3 2002 Q4 2002 2002 Q1 2003
------- ------- ------- ------- ---- -------
Insurance Services Revenue $ 64,140 $ 67,031 $ 70,495 $ 68,616 $ 270,282 $ 76,134
Business & Government Svcs Revenue 69,116 75,713 79,307 84,625 308,761 80,995
Marketing Services Revenue 23,717 27,950 27,467 26,699 105,833 25,573
Royalty Revenue 1,597 1,542 1,563 1,153 5,855 1,303
--------- --------- --------- --------- --------- ---------
Core Revenue (b) $ 158,570 $ 172,236 $ 178,832 $ 181,093 $ 690,731 $ 184,005
========= ========= ========= ========= ========= =========
Revenue from Divested & Discontinued Lines (a) 72 -- -- -- 72 --
--------- --------- --------- --------- --------- ---------
Revenue from products and services (c) $ 158,642 $ 172,236 $ 178,832 $ 181,093 $ 690,803 $ 184,005
Reimbursable Expenses per EITF 01-14 (c) 10,019 9,923 10,098 8,480 38,520 10,944
--------- --------- --------- --------- --------- ---------
Total Revenue $ 168,661 $ 182,159 $ 188,930 $ 189,573 $ 729,323 $ 194,949
========= ========= ========= ========= ========= =========
Insurance Services Operating Income $ 35,024 $ 35,502 $ 37,163 $ 36,950 $ 144,639 $ 42,436
Business & Government Svcs Operating Income 12,520 17,293 19,549 20,062 69,424 15,571
Marketing Services Operating Income 7,405 9,232 8,509 7,720 32,866 6,908
Royalty Operating Income 997 933 932 464 3,326 646
Income from Reimbursable Expenses -- -- -- -- -- --
Divested & Discontinued Operating Income (a) (206) -- -- -- (206) --
Corporate (11,518) (16,885) (16,163) (15,619) (60,185) (13,758)
--------- --------- --------- --------- --------- ---------
Operating Income before other operating charges $ 44,222 $ 46,075 $ 49,990 $ 49,577 $ 189,864 $ 51,803
========= ========= ========= ========= ========= =========
Other operating charges (d) -- (7,342) -- -- (7,342) --
--------- --------- --------- --------- --------- ---------
OPERATING INCOME $ 44,222 $ 38,733 $ 49,990 $ 49,577 $ 182,522 $ 51,803
========= ========= ========= ========= ========= =========
OPERATING MARGINS
Insurance Services 54.6% 53.0% 52.7% 53.9% 53.5% 55.7%
Business & Government Services 18.1% 22.8% 24.6% 23.7% 22.5% 19.2%
Marketing Services 31.2% 33.0% 31.0% 28.9% 31.1% 27.0%
Divested & Discontinued Lines (a) -286.1% n/a n/a n/a -286.1% n/a
ChoicePoint excluding other operating charges, as a
percentage of revenue from products and services (c) 27.9% 26.8% 28.0% 27.4% 27.5% 28.2%
OPERATING INCOME AS A PERCENTAGE OF REVENUE
FROM PRODUCTS AND SERVICES (C) 27.9% 22.5% 28.0% 27.4% 26.4% 28.2%
OPERATING INCOME AS A PERCENTAGE OF TOTAL REVENUE 26.2% 21.3% 26.5% 26.2% 25.0% 26.6%
INTERNAL GROWTH RATES (E)
Insurance Services 17.5% 17.0% 18.5% 18.0% 17.8% 17.2%
Business & Government Services -3.8% 5.6% 12.3% 17.6% 8.4% 3.9%
Marketing Services 3.4% 5.4% 4.9% 6.7% 5.2% -2.4%
Total ChoicePoint 5.7% 10.0% 13.4% 15.6% 11.4% 8.1%
Q2 2003 Q3 2003
------- -------
Insurance Services Revenue $ 77,922 $ 78,100
Business & Government Svcs Revenue 83,792 87,080
Marketing Services Revenue 25,676 22,631
Royalty Revenue 1,389 1,305
--------- ---------
Core Revenue (b) $ 188,779 $ 189,116
========= =========
Revenue from Divested & Discontinued Lines (a) -- --
--------- ---------
Revenue from products and services (c) $ 188,779 $ 189,116
Reimbursable Expenses per EITF 01-14 (c) 10,470 12,402
--------- ---------
Total Revenue $ 199,249 $ 201,518
========= =========
Insurance Services Operating Income $ 44,364 $ 43,998
Business & Government Svcs Operating Income 18,585 18,652
Marketing Services Operating Income 7,374 3,580
Royalty Operating Income 626 416
Income from Reimbursable Expenses -- --
Divested & Discontinued Operating Income (a)
Corporate (16,469) (14,850)
--------- ---------
Operating Income before other operating charges $ 54,480 $ 51,796
========= =========
Other operating charges (d) (19,817) (4,022)
--------- ---------
OPERATING INCOME $ 54,480 $ 51,796
========= =========
OPERATING MARGINS
Insurance Services 56.9% 56.3%
Business & Government Services 22.2% 21.4%
Marketing Services 28.7% 15.8%
Divested & Discontinued Lines (a) n/a n/a
ChoicePoint excluding other operating charges, as a
percentage of revenue from products and services (c) 28.9% 27.4%
OPERATING INCOME AS A PERCENTAGE OF REVENUE
FROM PRODUCTS AND SERVICES (C) 18.4% 25.3%
OPERATING INCOME AS A PERCENTAGE OF TOTAL REVENUE 17.4% 23.7%
INTERNAL GROWTH RATES (E)
Insurance Services 15.0% 10.1%
Business & Government Services -2.5% -3.9%
Marketing Services -13.6% -21.7%
Total ChoicePoint 2.4% -1.2%
(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 reimbused, 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 2000 Q1 2001 Q2 2001 Q3 2001
---- ---- ---- ------- ------- -------
NET INCOME $ 42,315 $ 42,197 $ 43,822 $ 7,213 $ 19,921 $ 12
EPS $ 0.52 $ 0.52 $ 0.52 $ 0.08 $ 0.23 $ 0.00
Less:
Cumulative change in accounting principle, net -- -- -- -- -- --
Income from discontinued operations, net of tax 4,037 3,997 3,656 881 1,249 1,208
Gain on sale of discontinued operations, net -- -- -- -- -- --
--------- --------- --------- --------- --------- ---------
Net income from continuing operations $ 38,278 $ 38,200 $ 40,166 $ 6,332 $ 18,672 $ (1,196)
EPS from continuing operations $ 0.47 $ 0.47 $ 0.48 $ 0.07 $ 0.21 $ (0.01)
Add back: goodwill amortization net of taxes (a) 5,401 9,397 12,885 3,118 3,198 3,203
Pro forma Net income from continuing operations (a) $ 43,679 $ 47,597 $ 53,051 $ 9,450 $ 21,870 $ 2,007
========= ========= ========= ========= ========= =========
Pro forma EPS from continuing operations (a) $ 0.54 $ 0.58 $ 0.63 $ 0.11 $ 0.25 $ 0.02
Add back:
Other operating charges (b) (5,049) (513) 28,419 17,865 -- 10,853
Tax provision (benefit) related to other
operating charges 2,114 (78) (8,604) (6,655) -- 10,534
--------- --------- --------- --------- --------- ---------
PRO FORMA INCOME FROM CONTINUING OPERATIONS
EXCLUDING OTHER OPERATING CHARGES (A)(B) $ 40,744 $ 47,006 $ 72,866 $ 20,660 $ 21,870 $ 23,394
========= ========= ========= ========= ========= =========
PRO FORMA EPS FROM CONTINUING OPERATIONS
EXCLUDING OTHER OPERATING CHARGES (A)(B) $ 0.51 $ 0.58 $ 0.87 $ 0.24 $ 0.25 $ 0.27
Wtd Avg Shares 80,616 81,591 84,139 86,264 86,873 87,457
Total Total
Q4 2001 2001 Q1 2002 Q2 2002 Q3 2002 Q4 2002 2002
------- ---- ------- ------- ------- ------- ----
NET INCOME $ 23,188 $ 50,334 $ 2,998 $ 24,113 $ 31,262 $ 31,454 $ 89,827
EPS $ 0.26 $ 0.58 $ 0.03 $ 0.27 $ 0.35 $ 0.35 $ 1.01
Less:
Cumulative change in accounting principle, net -- -- (24,416) -- -- -- (24,416)
Income from discontinued operations, net of tax 1,294 4,632 1,575 1,707 1,704 1,585 6,571
Gain on sale of discontinued operations, net -- -- -- -- -- -- --
--------- --------- --------- --------- --------- --------- ---------
Net income from continuing operations $ 21,894 $ 45,702 $ 25,839 $ 22,406 $ 29,558 $ 29,869 $ 107,672
EPS from continuing operations $ 0.25 $ 0.52 $ 0.29 $ 0.25 $ 0.33 $ 0.34 $ 1.21
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
========= ========= ========= ========= ========= ========= =========
Pro forma EPS from continuing operations (a) $ 0.28 $ 0.67 $ 0.29 $ 0.25 $ 0.33 $ 0.34 $ 1.21
Add back:
Other operating charges (b) -- 28,718 -- 7,342 -- -- 7,342
Tax provision (benefit) related to other
operating charges -- 3,879 -- (2,818) -- -- (2,818)
--------- --------- --------- --------- --------- --------- ---------
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
========= ========= ========= ========= ========= ========= =========
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
Wtd Avg Shares 88,101 87,151 88,969 89,692 89,612 89,064 89,194
Q1 2003 Q2 2003 Q3 2003
------- ------- -------
NET INCOME $ 65,175 $ 20,853 $ 29,055
EPS $ 0.73 $ 0.23 $ 0.32
Less:
Cumulative change in accounting principle, net -- -- --
Income from discontinued operations, net of tax 991 -- --
Gain on sale of discontinued operations, net 32,893 -- --
--------- --------- ---------
Net income from continuing operations $ 31,291 $ 20,853 $ 29,055
EPS from continuing operations $ 0.35 $ 0.23 $ 0.32
Add back: goodwill amortization net of taxes (a) -- -- --
Pro forma Net income from continuing operations (a) $ 31,291 $ 20,853 $ 29,055
========= ========= =========
Pro forma EPS from continuing operations (a) $ 0.35 $ 0.23 $ 0.32
Add back:
Other operating charges (b) -- 19,817 4,022
Tax provision (benefit) related to other
operating charges -- (7,609) (1,545)
--------- --------- ---------
PRO FORMA INCOME FROM CONTINUING OPERATIONS
EXCLUDING OTHER OPERATING CHARGES (A)(B) $ 31,291 $ 33,061 $ 31,532
========= ========= =========
PRO FORMA EPS FROM CONTINUING OPERATIONS
EXCLUDING OTHER OPERATING CHARGES (A)(B) $ 0.35 $ 0.37 $ 0.35
Wtd Avg Shares 89,374 89,354 89,866
(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 Total
1998 1999 2000 Q1 2001 Q2 2001 Q3 2001 Q4 2001 2001 Q1 2002 Q2 2002
---- ---- ---- ------- ------- ------- ------- ---- ------- -------
Merger transaction costs -- -- 11,579 -- -- -- -- -- -- --
Merger personnel related costs 838 -- 3,780 1,832 -- -- -- 1,832 -- --
Other merger integration costs -- -- 3,629 2,433 -- -- -- 2,433 -- --
Write down of minority investments -- 817 -- -- -- -- -- -- -- 2,370
Asset impairments 2,920 732 6,954 12,693 -- -- -- 12,693 -- 2,985
Nonmerger severance -- 451 1,885 838 -- -- -- 838 -- 567
Other one-time charges -- -- 592 69 -- -- -- 69 -- 1,420
(Gain) loss on sale of business (8,807) (2,513) -- -- -- 10,853 -- 10,853 -- --
------- ------- ------- ------- ------- ------- ------- ------- ------- -------
Total other operating charges (5,049) (513) 28,419 17,865 -- 10,853 -- 28,718 -- 7,342
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Total
Q3 2002 Q4 2002 2002 Q1 2003 Q2 2003 Q3 2003
------- ------- ---- ------- ------- -------
Merger transaction costs -- -- -- -- -- --
Merger personnel related costs -- -- -- -- -- --
Other merger integration costs -- -- -- -- -- --
Write down of minority investments -- -- 2,370 -- -- --
Asset impairments -- -- 2,985 -- 12,490 3,015
Nonmerger severance -- -- 567 -- 2,848 882
Other one-time charges -- -- 1,420 -- 4,479 125
(Gain) loss on sale of business -- -- -- -- -- --
------- ------- ------- ------- ------- -------
Total other operating charges -- -- 7,342 -- 19,817 4,022
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