EXHIBIT 99.1
FOR IMMEDIATE RELEASE
Contact: John Mongelli
Investor Relations
(770) 752-6171
CHOICEPOINT(R) REPORTS FOURTH QUARTER AND 2003 FULL YEAR RESULTS
ALPHARETTA, GA. - JANUARY 22, 2004- ChoicePoint Inc. (NYSE: CPS), today reported
fourth quarter total revenue of $200.0 million, reflecting revenue growth over
the comparable period of 2002 of 5 percent. For the full year, total revenue was
a record $795.7 million, a 9 percent increase over comparable revenue in 2002.
Earnings per share ("EPS") for the fourth quarter was $0.30 per share which
includes the $0.05 per share dilutive effect of the previously announced
repositioning of certain of our operations. Consistent with the previously
announced consolidation of some of our public records and workplace solutions
operations and the reengineering of certain of our direct marketing businesses,
the Company recorded an additional other operating charge of $7.1 million ($4.4
million after tax) during the fourth quarter of 2003. Excluding the effect of
this charge, EPS would have been $0.35 per share. Full year EPS was $1.58
compared to $1.01 in 2002, an increase of 57 percent. Full year EPS from
continuing operations excluding the other operating charge ($30.9 million, $19.1
million after tax) was $1.42 in 2003, a 13 percent increase over $1.26 in 2002.
"During the quarter, we continued to see improving underlying trends in our core
businesses which positions us for a solid 2004" commented Derek V. Smith,
Chairman and CEO. "Looking ahead, I am excited about the momentum I am seeing
and the tremendous opportunities for ChoicePoint to leverage our unique
capabilities."
Chief Financial Officer Steven W. Surbaugh added, "I am pleased that we achieved
total revenue growth of 9 percent and delivered 13 percent growth in earnings
despite weaknesses in our Marketing Services segment and tough homeland security
revenue comparisons. Importantly, our earnings continue to turn to cash as
evidenced by our outstanding 39 percent growth in net
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free cash flow, and we were able to lower our net debt to record levels. We
continue to have outstanding cash flows and a very strong balance sheet."
FINANCIAL HIGHLIGHTS - FOURTH QUARTER
- Core revenue increased 4 percent to $188.5 million for the
fourth quarter of 2003 from $181.1 million for the fourth
quarter of 2002. Internal revenue (which represents core
revenue less revenue from acquisitions) for the fourth quarter
of 2003 declined 3 percent from the fourth quarter of 2002,
primarily related to the continued weakness in our Marketing
Services businesses, including our e-mail business, and
tougher homeland security revenue comparisons. Fourth quarter
2003 total revenue increased 5 percent to $200.0 million from
$189.6 million in 2002.
- Operating income was $44.3 million for the fourth quarter of
2003 compared to $49.6 million for the fourth quarter of 2002.
Excluding the other operating charges discussed below,
operating income was $51.4 million for the fourth quarter of
2003, an increase of 4 percent from 2002.
- In the fourth quarter of 2003, the Company recorded an
additional pre-tax charge of $7.1 million ($4.4 million net of
taxes) primarily related to the previously announced
consolidation of some of our public records and workplace
solutions operations and the reengineering of certain of our
direct marketing businesses.
- During the quarter ended December 31, 2003, the Company
acquired CITI Network, Inc. d/b/a Applicant Screening and
Processing (ASAP), a provider of residential screening
services to apartment communities located in Florida.
FINANCIAL HIGHLIGHTS - FULL YEAR
- Core revenue increased 9 percent to $750.4 million for the
year ended December 31, 2003 from $690.7 million for 2002.
Internal revenue increased 2 percent from 2002, as weakness in
our print and e-mail marketing businesses and our very strong
homeland security revenues in 2002 were offset by strong
growth in our personal lines business. 2003 total revenue
increased 9 percent to $795.7 million from $729.3 million in
2002.
- Operating income was $178.6 million for the year ended
December 31, 2003 compared to $182.5 million for 2002.
Excluding the other operating charges discussed below,
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operating income was $209.5 million for 2003 compared to
$189.9 million for 2002, an increase of 10 percent from 2002.
- During 2003, the Company recorded a $61.2 million pre-tax gain
on the sale of our CP Commercial Specialists ("CPCS") business
($32.9 million after tax) and pre-tax other operating charges
totaling $30.9 million ($19.1 million net of taxes) related to
the previously announced realignment of our technology
infrastructure and operations following the divestiture of our
CPCS business, the transition to our new data center, the
reengineering of certain of our direct marketing businesses
and the further consolidation of some of our public records
and workplace solutions businesses. These initiatives were
concluded in the fourth quarter of 2003. During the second
quarter of 2002, the Company recorded a pre-tax charge of $7.3
million ($4.5 million net of taxes) primarily related to a
write-down of minority investments in start-up companies and
expenses primarily related to the closure of two facilities
and remaining obligations.
- Free cash flow (net cash provided by operating activities of
continuing operations of $194.3 million less capital
expenditures of $41.9 million) was a very strong and record
$152.4 million for the year ended December 31, 2003, an
increase of $42.6 million compared to $109.7 million for 2002.
- Net debt (total debt less cash) for the year ended December
31, 2003, decreased by $119.5 million to a historically low
$28.6 million as we used proceeds from the first quarter sale
of CPCS and cash from operations to reduce indebtedness. Our
additional remaining debt capacity under our committed
financing lines is approximately $375 million.
OPERATIONAL HIGHLIGHTS
INSURANCE SERVICES
- Total revenue increased 12 percent to $77.0 million in the
fourth quarter of 2003 compared to $68.6 million in the prior
year, including an internal revenue growth rate of 10 percent.
For the year ended December 31, revenue increased 14 percent,
with an internal revenue growth rate of 13 percent, to $309.1
million in 2003 from $270.3 million in 2002. These results
exclude CPCS, which was sold in February 2003 and is reported
as discontinued operations in the accompanying financial
information. The personal lines business posted mid-teen
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internal growth driven by marketplace acceptance of new
products and increased unit volumes in the personal lines
business. The overall growth rate for the segment during the
quarter and the full year was impacted by a decline in
internal revenues at Insurity due to the project-oriented
nature of its operations.
- Operating income in Insurance Services was $41.7 million for
the fourth quarter of 2003, up 13 percent from $37.0 million
in the prior year. Operating profit margin in Insurance
Services for the quarter was 54.2 percent, compared to 53.9
percent in the fourth quarter of 2002. For the full year,
operating income was $172.5 million, up 19 percent from $144.6
million in 2002, resulting in an operating margin of 55.8
percent, a 230 basis point improvement over 53.5 percent in
2002. The increase in operating income is due primarily to the
revenue growth discussed above.
BUSINESS & GOVERNMENT SERVICES
- Total revenue increased 4 percent to $87.6 million in the
fourth quarter of 2003 compared to $84.6 million in the prior
year primarily due to growth from acquisitions and our nursery
initiatives, which offset declines in our public records and
workplace solutions product lines due to tougher homeland
security revenue comparisons versus the fourth quarter of
2002. Internal revenue declined 7 percent for the fourth
quarter of 2003 over the comparable period in 2002. For the
year ended December 31, revenue increased 10 percent to $339.5
million in 2003 from $308.8 million in 2002.
- Operating income in Business & Government Services was $18.3
million for the fourth quarter of 2003, down 9 percent from
$20.1 million in the prior year primarily due to changes in
product mix, a decline in the project-related homeland
security revenues, and additional costs related to transitions
during our public records and drug testing consolidations.
Operating profit margin in Business & Government Services for
the fourth quarter of 2003 was 20.9 percent. For the full
year, operating income was $71.1 million, compared to $69.4
million in 2002, resulting in an operating margin of 20.9
percent in 2003 compared to 22.5 percent in 2002.
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MARKETING SERVICES
- In the fourth quarter of 2003, revenue excluding reimbursable
expenses decreased 15 percent from prior year revenue of $26.7
million to $22.8 million in 2003 due primarily to weakness in
our print products and the downsizing of our e-mail marketing
business. Internal revenue declined 19 percent. Total revenue
for the Marketing segment (which includes all of the Company's
revenue from reimbursable expenses) decreased 2 percent from
$35.2 million in 2002 to $34.3 million in 2003. For the year
ended December 31, revenue excluding reimbursable expenses
decreased 9 percent, to $96.6 million in 2003 from $105.8
million in 2002, while internal revenue declined 15 percent,
and total revenue declined 2 percent from $144.4 million in
2002 to $142.0 million in 2003. The Company excludes the
revenue from reimbursable expenses in its operational analyses
because these items are fully reimbursed by our customers
without markup and have no impact on operating income, net
income, EPS, cash flows or the balance sheet.
- Operating income in Marketing Services was $4.0 million for
the fourth quarter of 2003, down significantly from $7.7
million in the prior year due to lower revenues and high fixed
costs. Fourth quarter operating profit margin, as a percentage
of revenue without reimbursable expenses, was 17.5 percent
(11.6 percent of total revenue). For the full year, operating
income was $21.8 million, down 34 percent from $32.9 million
in 2002, resulting in an operating margin of 22.6 percent in
2003 compared to 31.1 percent in 2002.
OUTLOOK
Based on recent business trends, ChoicePoint continues to expect full year core
revenue growth to be in the 8 to 12 percent range, exclusive of any 2004
acquisitions. Additionally, the Company expects year-over-year margin expansion
of up to 100 basis points based on these revenue assumptions and lower costs
associated with the cost reduction initiatives implemented in 2003.
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WEBCAST
ChoicePoint's fourth quarter results will be discussed in more detail on January
22, 2003, at 8:30 am EST via teleconference. The live audio Webcast of the call
will be available on ChoicePoint's Web site at www.choicepoint.com. There will
also be a replay of the call available beginning at approximately 10:00 am EST
at the same Web address.
About ChoicePoint
ChoicePoint Inc. (NYSE: CPS) is the leading provider of identification and
credential verification services for making smarter decisions in a world
challenged by increased risks. Serving the needs of business, government,
non-profit organizations and individuals, ChoicePoint works to create a safer
and more secure society through the responsible use of information while
ensuring the protection of personal privacy. For more information about
ChoicePoint, visit the Company's Web site at www.choicepoint.com.
Forward-Looking Statements
Certain written statements in this release and oral statements made by or on
behalf of the Company may constitute "forward-looking statements" as defined
under the Private Securities Litigation Reform Act of 1995. Words or phrases
such as "should result," "are expected to," "we anticipate," "we estimate," "we
project," or similar expressions are intended to identify forward-looking
statements. These statements are subject to certain risks and uncertainties that
could cause actual results to differ materially from those expressed in any
forward-looking statements. These risks and uncertainties include, but are not
limited to, the following important factors: demand for the Company's services,
product development, maintaining acceptable margins, ability to control costs,
the impact of federal, state and local regulatory requirements on the Company's
business, including the public records market and privacy matters affecting the
Company, the impact of competition and the uncertainty of economic conditions in
general. Additional information concerning these and other risks and
uncertainties is contained in the Company's filings with the Securities and
Exchange Commission, including the Company's Annual Report on Form 10-K for the
year ended December 31, 2002. Readers are cautioned not to place undue reliance
on forward-looking statements, since the statements speak only as of the date
that they are made, and the Company undertakes no obligation to publicly update
these statements based on events that may occur after the date of this press
release.
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CHOICEPOINT INC.
Financial Highlights
Three Months Ended Year Ended
(Unaudited) December 31, December 31,
--------------------- ----------------------
(Dollars in thousands, except per share data) 2003 2002 2003 2002
-------- -------- --------- --------
Core revenue (a)....................................................... $188,451 $181,093 $ 750,351 $690,731
Revenue from divested and discontinued product lines................... - - - 72
-------- -------- --------- --------
Revenue from products and services..................................... 188,451 181,093 750,351 690,803
Reimbursable expenses per EITF 01-14 (b)............................... 11,579 8,480 45,395 38,520
-------- -------- --------- --------
Total revenue.......................................................... 200,030 189,573 795,746 729,323
======== ======== ========= ========
Cost of services....................................................... 102,412 93,887 402,148 360,131
Reimbursable expenses.................................................. 11,579 8,480 45,395 38,520
Selling, general and administrative expenses........................... 34,616 37,629 138,701 140,808
Other operating charges (c)............................................ 7,103 - 30,942 7,342
-------- -------- --------- --------
Total costs and expenses............................................... 155,710 139,996 617,186 546,801
Operating income....................................................... 44,320 49,577 178,560 182,522
Interest expense....................................................... 637 1,100 3,061 7,772
-------- -------- --------- --------
Income from continuing operations before income taxes.................. 43,683 48,477 175,499 174,750
Provision for income taxes............................................. 16,774 18,608 67,391 67,078
-------- -------- --------- --------
Income from continuing operations...................................... 26,909 29,869 108,108 107,672
Income from discontinued operations, net of taxes (d).................. - 1,585 991 6,571
Gain on sale of discontinued operations, net of taxes (d).............. - - 32,893 -
Cumulative effect of change in accounting principle, net of taxes (e).. - - - (24,416)
-------- -------- --------- --------
Net income ............................................................ $ 26,909 $ 31,454 $ 141,992 $ 89,827
======== ======== ========= ========
EPS - diluted:
Income from continuing operations................................. $ 0.30 $ 0.34 $ 1.21 $ 1.21
Discontinued operations, net of taxes............................. - $ 0.02 0.01 0.07
Gain on sale of discontinued operations, net of taxes............. - - 0.37 -
Cumulative effect of change in accounting principle, net of taxes - - - (0.27)
-------- -------- --------- --------
Net Income........................................................ $ 0.30 $ 0.35 $ 1.58 $ 1.01
======== ======== ========= ========
Weighted average shares - diluted.................................... 89,923 89,064 89,686 89,194
======== ======== ========= ========
Depreciation and amortization expense.................................. $ 13,225 $ 12,376 $ 53,120 $ 44,850
EBITDA (f)............................................................. $ 57,545 $ 61,953 $ 231,680 $227,372
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CHOICEPOINT INC.
Financial Highlights (continued)
RECONCILIATION TO FINANCIAL INFORMATION EXCLUDING OTHER OPERATING CHARGES (C)
Three Months Ended Year Ended
December 31, December 31,
(Unaudited) ------------------ -----------------
(Dollars in thousands, except per share data) 2003 2002 2003 2002
-------- -------- -------- ---------
Operating income..................................................... $ 44,320 $ 49,577 $178,560 $ 182,522
Add back other operating charges (c)................................. 7,103 - 30,942 7,342
-------- -------- -------- ---------
Operating income before other operating charges...................... 51,423 49,577 209,502 189,864
Interest Expense..................................................... 637 1,100 3,061 7,772
-------- -------- -------- ---------
Income from continuing operations before income taxes & other
operating charges.................................................. 50,786 48,477 206,441 182,092
Provision for income taxes........................................... 19,502 18,608 79,273 69,896
-------- -------- -------- ---------
Income from continuing operations before other operating charges..... $ 31,284 $ 29,869 $127,168 $ 112,196
======== ======== ======== =========
Effective tax rate................................................... 38.4% 38.4% 38.4% 38.4%
Earnings per share - diluted excluding other operating charges....... $ 0.35 $ 0.34 $ 1.42 $ 1.26
EBITDA excluding other operating charges (f)......................... $ 64,648 $ 61,953 $262,622 $ 234,714
(a) Core revenue excludes revenue from reimbursable expenses (see (b)
below) and divested and discontinued product lines. The Company uses
the core revenue metric to measure its continuing operations without
the effect of reimbursable expenses.
(b) Reimbursable expenses per Emerging Issues Task Force ("EITF") 01-14
represent out-of-pocket expenses fully reimbursed by ChoicePoint's
customers and recorded as revenues and expenses in accordance with EITF
01-14 "Income Statement Characterization of Reimbursements Received for
`Out-of-Pocket' Expenses Incurred". As these expenses are fully
reimbursed, without mark-up, by our customers and in a majority of
cases prepaid by the customers, there is no impact on operating income,
net income, EPS, cash flows or the balance sheet. In addition,
management excludes these expenses from its revenue analysis for
operational management and incentive purposes; therefore, we have
separately identified these expenses and excluded the impact of them
from calculations of core revenue, internal revenue growth and
operating margins. Other pass-through expenses such as motor vehicle
registry fees will continue to be accounted for on a net basis and, as
such, excluded from revenues in our financial statements in accordance
with generally accepted accounting principles. Fourth quarter
pass-through expenses totaled $148.4 million in 2003 and $125.3 million
in 2002. Pass-through expenses totaled $597.6 million for the year
ended December 31, 2003 and $491.7 million for the year ended December
31, 2002.
(c) During the year ended December 31, 2003, the Company recorded other
operating charges of $30.9 million ($19.1 million net of taxes) related
to the previously announced realignment of our technology
infrastructure and operations following the divestiture of our CPCS
business, the transition to our new data center, the reengineering of
certain of our direct marketing businesses and the further
consolidation of some of our public records and workplace solutions
operations. This $30.9 million charge included asset impairments of
$21.3 million primarily related to closed facilities and abandoned
technology in the realignment, $4.4 million in severance and
termination benefits, and $5.2 million of abandoned lease and other
contractual commitments. During the second quarter of 2002, the Company
recorded other operating charges of $7.3 million ($4.5 million net of
taxes). This charge included a write-down of minority investments in
start-up companies of $2.4 million, asset impairments of technology
initiatives of $3.0 million, $0.5 million in severance and termination
benefits and $1.4 million of expenses primarily related to the closure
of two facilities and remaining obligations. The Company has presented
analysis with and without these items because they represent costs that
management excludes in its assessments of operating results and in
determining operational incentive awards.
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(d) On February 28, 2003, the Company sold its CPCS operating unit. The
pre-tax proceeds from the sale of CPCS were approximately $87 million.
CPCS is reported as a discontinued operation for all periods presented
and the results of its operations are reflected separately from the
results of continuing operations.
(e) The change in accounting principle, net of taxes represents the
goodwill impairment charge recorded by the Company retroactive to
January 1, 2002 in accordance with Financial Accounting Standards Board
("FASB") Statement No. 142, "Goodwill and Other Intangible Assets,"
("FASB Statement No. 142").
(f) Earnings before interest, taxes, depreciation and amortization
("EBITDA"), is not presented as a substitute for operating income, net
income or cash flows from operating activities. The Company has
included EBITDA and EBITDA excluding other operating charges data
(which are not a measure of financial performance under generally
accepted accounting principles) because such data are used by the
Company to compare its performance to its competitors and to manage its
on-going business and is also used by certain investors to analyze and
compare companies on the basis of operating performance.
CHOICEPOINT INC.
Financial Highlights (continued)
Year Ended
(Unaudited) December 31,
----------------------
(Dollars in thousands) 2003 2002
--------- ---------
CASH FLOW HIGHLIGHTS
Income from continuing operations......................................... $ 108,108 $ 107,672
Depreciation & amortization............................................... 53,120 44,850
Changes in assets & liabilties and other.................................. 33,059 6,192
--------- ---------
Net cash provided by operating activities of continuing operations........ $ 194,287 $ 158,714
Net cash (used) provided by activities of discontinued operations......... $ (38,609) $ 10,036
Acquisitions & investments, net of cash acquired.......................... $ (93,567) $(186,990)
Cash proceeds from sale of business....................................... 87,000 650
Capital expenditures...................................................... (41,931) (49,003)
Other investing activities................................................ - -
--------- ---------
Net cash used by investing activities..................................... $ (48,498) $(235,343)
Net cash (used) provided by financing activities......................... $(118,129) $ 47,919
KEY BALANCE SHEET HIGHLIGHTS December 31, 2003
-----------------
Debt..................................................................... $ 52,029
Cash..................................................................... 23,410
---------
Debt (net of cash)....................................................... $ 28,619
Shareholders' Equity..................................................... $ 790,495
Days sales outstanding (adjusted for pass through expenses).............. 39 days
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CHOICEPOINT INC.
2003 SEGMENT RESULTS
Q1 2003 Q2 2003 Q3 2003 Q4 2003 Total 2003
--------- ------- ------- ------- ----------
REVENUE
Insurance Services $ 76,134 $ 77,922 $ 78,100 $ 76,968 $ 309,124
Business & Government Services 80,995 83,792 87,080 87,616 339,483
Marketing Services 25,573 25,676 22,631 22,762 96,642
Royalty 1,303 1,389 1,305 1,105 5,102
--------- --------- --------- --------- ---------
Core Revenue 184,005 188,779 189,116 188,451 750,351
Divested & Discontinued Product Lines - - - - -
--------- --------- --------- --------- ---------
Revenue from products and services 184,005 188,779 189,116 188,451 750,351
Reimbursable Expenses per EITF 01-14 10,944 10,470 12,402 11,579 45,395
--------- --------- --------- --------- ---------
Total Revenue $ 194,949 $ 199,249 $ 201,518 $ 200,030 $ 795,746
========= ========= ========= ========= =========
OPERATING INCOME
Insurance Services $ 42,436 $ 44,364 $ 43,998 $ 41,720 $ 172,518
Business & Government Services 15,571 18,585 18,652 18,272 71,080
Marketing Services 6,908 7,374 3,580 3,987 21,849
Royalty 646 626 416 380 2,068
Divested & Discontinued Product Lines - - - - -
Corporate & Shared Expenses (a) (13,758) (16,469) (14,850) (12,936) (58,013)
--------- --------- --------- --------- ---------
Operating Income before other charges (b) $ 51,803 $ 54,480 $ 51,796 $ 51,423 $ 209,502
========= ========= ========= ========= =========
Other operating charges (b) - (19,817) (4,022) (7,103) (30,942)
--------- --------- --------- --------- ---------
Operating Income $ 51,803 $ 34,663 $ 47,774 $ 44,320 $ 178,560
========= ========= ========= ========= =========
CORE REVENUE GROWTH RATES
Insurance Services 18.7% 16.2% 10.8% 12.2% 14.4%
Business & Government Services 17.2% 10.7% 9.8% 3.5% 10.0%
Marketing Services 7.8% -8.1% -17.6% -14.7% -8.7%
--------- --------- --------- --------- ---------
Continuing operations 16.0% 9.6% 5.8% 4.1% 8.6%
--------- --------- --------- --------- ---------
INTERNAL REVENUE GROWTH RATES
Insurance Services 17.2% 15.0% 10.1% 9.5% 12.8%
Business & Government Services 3.9% -2.5% -3.9% -7.4% -2.8%
Marketing Services -2.4% -13.6% -21.7% -18.7% -14.5%
--------- --------- --------- --------- ---------
Continuing operations 8.1% 2.4% -1.2% -2.6% 1.5%
--------- --------- --------- --------- ---------
OPERATING MARGINS
Insurance Services 55.7% 56.9% 56.3% 54.2% 55.8%
Business & Government Services 19.2% 22.2% 21.4% 20.9% 20.9%
Marketing Services 27.0% 28.7% 15.8% 17.5% 22.6%
--------- --------- --------- --------- ---------
Operating income before other operating
charges, percentage of revenue from
products and services (b) 28.2% 28.9% 27.4% 27.3% 27.9%
--------- --------- --------- --------- ---------
Operating income, as a percentage of
total revenue 26.6% 17.4% 23.7% 22.2% 22.4%
--------- --------- --------- --------- ---------
(a) Corporate and shared expenses represent costs of support functions,
research and development initiatives, incentives and profit sharing
that benefit all three segments.
(b) The Company has presented analysis above with and without these items
because they represent costs that management excludes in its
assessments of operating results and in determining operational
incentive awards.
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CHOICEPOINT INC.
2002 SEGMENT RESULTS
Q1 2002 Q2 2002 Q3 2002 Q4 2002 Total 2002
--------- --------- --------- --------- ----------
REVENUE
Insurance Services $ 64,140 $ 67,031 $ 70,495 $ 68,616 $ 270,282
Business & Government Services 69,116 75,713 79,307 84,625 308,761
Marketing Services 23,717 27,950 27,467 26,699 105,833
Royalty 1,597 1,542 1,563 1,153 5,855
--------- --------- --------- --------- ---------
Core revenue 158,570 172,236 178,832 181,093 690,731
Divested & Discontinued Product Lines 72 - - - 72
--------- --------- --------- --------- ---------
Revenue from products and services 158,642 172,236 178,832 181,093 690,803
Reimbursable Expenses per EITF 01-14 10,019 9,923 10,098 8,480 38,520
--------- --------- --------- --------- ---------
Total Revenue $ 168,661 $ 182,159 $ 188,930 $ 189,573 $ 729,323
========= ========= ========= ========= =========
OPERATING INCOME
Insurance Services $ 35,024 $ 35,502 $ 37,163 $ 36,950 $ 144,639
Business & Government Services 12,520 17,293 19,549 20,062 69,424
Marketing Services 7,405 9,232 8,509 7,720 32,866
Royalty 997 933 932 464 3,326
Divested & Discontinued Product Lines (206) - - - (206)
Corporate & Shared Expenses (11,518) (16,885) (16,163) (15,619) (60,185)
--------- --------- --------- --------- ---------
Operating Income before other charges $ 44,222 $ 46,075 $ 49,990 $ 49,577 $ 189,864
========= ========= ========= ========= =========
Other operating charges - (7,342) - - (7,342)
--------- --------- --------- --------- ---------
Operating Income $ 44,222 $ 38,733 $ 49,990 $ 49,577 $ 182,522
========= ========= ========= ========= =========
CORE REVENUE GROWTH RATES
Insurance Services 18.2% 17.0% 20.0% 19.4% 18.7%
Business & Government Services 11.6% 16.7% 12.3% 20.9% 15.5%
Marketing Services 43.0% 73.1% 24.5% 23.2% 38.4%
--------- --------- --------- --------- ---------
Continuing operations 18.0% 22.9% 16.9% 20.1% 19.4%
--------- --------- --------- --------- ---------
INTERNAL REVENUE GROWTH RATES
Insurance Services 17.5% 17.0% 18.5% 18.0% 17.8%
Business & Government Services -3.8% 5.6% 12.3% 17.6% 8.4%
Marketing Services 3.4% 5.4% 4.9% 6.7% 5.2%
--------- --------- --------- --------- ---------
Continuing operations 5.7% 10.0% 13.4% 15.6% 11.4%
--------- --------- --------- --------- ---------
OPERATING MARGINS
Insurance Services 54.6% 53.0% 52.7% 53.9% 53.5%
Business & Government Services 18.1% 22.8% 24.6% 23.7% 22.5%
Marketing Services 31.2% 33.0% 31.0% 28.9% 31.1%
--------- --------- --------- --------- ---------
Operating income before other operating
charges, as a percentage of revenue
from products and services 27.9% 26.8% 28.0% 27.4% 27.5%
--------- --------- --------- --------- ---------
Operating income, as a percentage of
total revenue 26.2% 21.3% 26.5% 26.2% 25.0%
--------- --------- --------- --------- ---------