.
.
.
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
--------- --------- --------- --------- ---------
Insurance Services Revenue $ 148,017 $ 161,056 $ 189,822 $ 54,263 $ 57,283
Business & Government Svcs Revenue 150,169 187,999 233,270 61,921 64,875
Marketing Services Revenue 6,340 42,946 63,549 16,586 16,150
Royalty Revenue 6,636 6,219 6,364 1,657 1,807
--------- --------- --------- --------- ---------
Core Revenue (c) $ 311,162 $ 398,220 $ 493,005 $ 134,427 $ 140,115
========= ========= ========= ========= =========
Revenue from Divested & Discontinued Lines (b) 106,063 64,035 54,613 8,902 9,272
--------- --------- --------- --------- ---------
Revenue from products and services (d) $ 417,225 $ 462,255 $ 547,618 $ 143,329 $ 149,387
Reimbursable Expenses per EITF 01-14 (d) 6,069 38,131 37,392 8,950 8,139
--------- --------- --------- --------- ---------
Total Revenue $ 423,294 $ 500,386 $ 585,010 $ 152,279 $ 157,526
========= ========= ========= ========= =========
Insurance Services Operating Income (a) $ 66,941 $ 78,335 $ 95,549 $ 27,257 $ 30,410
Business & Government Svcs Operating Income (a) 12,613 9,006 38,747 13,323 13,330
Marketing Services Operating Income (a) 1,819 12,856 23,460 5,390 6,772
Royalty Operating Income 3,903 3,483 3,804 1,051 1,191
Income from Reimbursable Expenses - - - - -
Divested & Discontinued Operating Income (a) (b) 14,947 16,651 9,250 (279) 67
Corporate (27,611) (33,619) (43,503) (10,843) (13,929)
--------- --------- --------- --------- ---------
Operating Income before other operating charges $ 72,612 $ 86,712 $ 127,307 $ 35,899 $ 37,841
========= ========= ========= ========= =========
Other operating charges (e) 5,049 513 (28,419) (17,865) -
--------- --------- --------- --------- ---------
OPERATING INCOME $ 77,661 $ 87,225 $ 98,888 $ 18,034 $ 37,841
========= ========= ========= ========= =========
CORE REVENUE GROWTH RATE 28.0% 23.8% 14.7% 13.6%
OPERATING MARGINS
Insurance Services 45.2% 48.6% 50.3% 50.2% 53.1%
Business & Government Services 8.4% 4.8% 16.6% 21.5% 20.5%
Marketing Services 28.7% 29.9% 36.9% 32.5% 41.9%
Divested & Discontinued Lines* 14.1% 26.0% 16.9% -3.1% 0.7%
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%
OPERATING INCOME AS A PERCENTAGE OF REVENUE
FROM PRODUCTS AND SERVICES (d) 18.6% 18.9% 18.1% 12.6% 25.3%
Total
Q3 2001 Q4 2001 2001 Q1 2002 Q2 2002
--------- --------- --------- --------- ---------
Insurance Services Revenue $ 58,734 $ 57,447 $ 227,727 $ 64,140 $ 67,031
Business & Government Svcs Revenue 70,608 70,005 267,409 69,116 75,713
Marketing Services Revenue 22,054 21,671 76,461 23,717 27,950
Royalty Revenue 1,630 1,714 6,808 1,597 1,542
--------- --------- --------- --------- ---------
Core Revenue (c) $ 153,026 $ 150,837 $ 578,405 $ 158,570 $ 172,236
========= ========= ========= ========= =========
Revenue from Divested & Discontinued Lines (b) 5,877 192 24,243 72 -
--------- --------- --------- --------- ---------
Revenue from products and services (d) $ 158,903 $ 151,029 $ 602,648 $ 158,642 $ 172,236
Reimbursable Expenses per EITF 01-14 (d) 10,816 10,123 38,028 10,019 9,923
--------- --------- --------- --------- ---------
Total Revenue $ 169,719 $ 161,152 $ 640,676 $ 168,661 $ 182,159
========= ========= ========= ========= =========
Insurance Services Operating Income (a) $ 31,945 $ 30,895 $ 120,507 $ 35,024 $ 35,502
Business & Government Svcs Operating Income (a) 13,633 15,917 56,203 12,520 17,293
Marketing Services Operating Income (a) 7,077 7,152 26,391 7,405 9,232
Royalty Operating Income 1,011 1,147 4,400 997 933
Income from Reimbursable Expenses - - - - -
Divested & Discontinued Operating Income (a) (b) (464) (292) (968) (206) -
Corporate (12,525) (11,981) (49,278) (11,518) (16,885)
--------- --------- --------- --------- ---------
Operating Income before other operating charges $ 40,677 $ 42,838 $ 157,255 $ 44,222 $ 46,075
========= ========= ========= ========= =========
Other operating charges (e) (10,853) - (28,718) - (7,342)
--------- --------- --------- --------- ---------
OPERATING INCOME $ 29,824 $ 42,838 $ 128,537 $ 44,222 $ 38,733
========= ========= ========= ========= =========
CORE REVENUE GROWTH RATE 20.9% 19.7% 17.3% 18.0% 22.9%
OPERATING MARGINS
Insurance Services 54.4% 53.8% 52.9% 54.6% 53.0%
Business & Government Services 19.3% 22.7% 21.0% 18.1% 22.8%
Marketing Services 32.1% 33.0% 34.5% 31.2% 33.0%
Divested & Discontinued Lines* -7.9% -152.1% -4.0% -286.1% n/a
ChoicePoint excluding other operating charges, as a
percentage of revenue from products and services (d) 25.6% 28.4% 26.1% 27.9% 26.8%
OPERATING INCOME AS A PERCENTAGE OF REVENUE
FROM PRODUCTS AND SERVICES (d) 18.8% 28.4% 21.3% 27.9% 22.5%
Total
Q3 2002 Q4 2002 2002 Q1 2003 Q2 2003
--------- --------- --------- --------- ---------
Insurance Services Revenue $ 70,495 $ 68,616 $ 270,282 $ 76,134 $ 77,922
Business & Government Svcs Revenue 79,307 84,625 308,761 80,995 83,792
Marketing Services Revenue 27,467 26,699 105,833 25,573 25,676
Royalty Revenue 1,563 1,153 5,855 1,303 1,389
--------- --------- --------- --------- ---------
Core Revenue (c) $ 178,832 $ 181,093 $ 690,731 $ 184,005 $ 188,779
========= ========= ========= ========= =========
Revenue from Divested & Discontinued Lines (b) - - 72 - -
--------- --------- --------- --------- ---------
Revenue from products and services (d) $ 178,832 $ 181,093 $ 690,803 $ 184,005 $ 188,779
Reimbursable Expenses per EITF 01-14 (d) 10,098 8,480 38,520 10,944 10,470
--------- --------- --------- --------- ---------
Total Revenue $ 188,930 $ 189,573 $ 729,323 $ 194,949 $ 199,249
========= ========= ========= ========= =========
Insurance Services Operating Income (a) $ 37,163 $ 36,950 $ 144,639 $ 42,436 $ 44,364
Business & Government Svcs Operating Income (a) 19,549 20,062 69,424 15,571 18,585
Marketing Services Operating Income (a) 8,509 7,720 32,866 6,908 7,374
Royalty Operating Income 932 464 3,326 646 626
Income from Reimbursable Expenses - - - - -
Divested & Discontinued Operating Income (a) (b) - - (206) - -
Corporate (16,163) (15,619) (60,185) (13,758) (16,469)
--------- --------- --------- --------- ---------
Operating Income before other operating charges $ 49,990 $ 49,577 $ 189,864 $ 51,803 $ 54,480
========= ========= ========= ========= =========
Other operating charges (e) - - (7,342) - (19,817)
--------- --------- --------- --------- ---------
OPERATING INCOME $ 49,990 $ 49,577 $ 182,522 $ 51,803 $ 34,663
========= ========= ========= ========= =========
CORE REVENUE GROWTH RATE 16.9% 20.1% 19.4% 16.0% 9.6%
OPERATING MARGINS
Insurance Services 52.7% 53.9% 53.5% 55.7% 56.9%
Business & Government Services 24.6% 23.7% 22.5% 19.2% 22.2%
Marketing Services 31.0% 28.9% 31.1% 27.0% 28.7%
Divested & Discontinued Lines* 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) 28.0% 27.4% 27.5% 28.2% 28.9%
OPERATING INCOME AS A PERCENTAGE OF REVENUE
FROM PRODUCTS AND SERVICES (d) 28.0% 27.4% 26.4% 28.2% 18.4%
Total
Q3 2003 Q4 2003 2003
--------- --------- ---------
Insurance Services Revenue $ 78,100 $ 76,968 $ 309,124
Business & Government Svcs Revenue 87,080 87,616 339,483
Marketing Services Revenue 22,631 22,762 96,642
Royalty Revenue 1,305 1,105 5,102
--------- --------- ---------
Core Revenue (c) $ 189,116 $ 188,451 $ 750,351
========= ========= =========
Revenue from Divested & Discontinued Lines (b) - - -
--------- --------- ---------
Revenue from products and services (d) $ 189,116 $ 188,451 $ 750,351
Reimbursable Expenses per EITF 01-14 (d) 12,402 11,579 45,395
--------- --------- ---------
Total Revenue $ 201,518 $ 200,030 $ 795,746
========= ========= =========
Insurance Services Operating Income (a) $ 43,998 $ 41,720 $ 172,518
Business & Government Svcs Operating Income (a) 18,652 18,272 71,080
Marketing Services Operating Income (a) 3,580 3,987 21,849
Royalty Operating Income 416 380 2,068
Income from Reimbursable Expenses - - -
Divested & Discontinued Operating Income (a) (b) - - -
Corporate (14,850) (12,936) (58,013)
--------- --------- ---------
Operating Income before other operating charges $ 51,796 $ 51,423 $ 209,502
========= ========= =========
Other operating charges (e) (4,022) (7,103) (30,942)
--------- --------- ---------
OPERATING INCOME $ 47,774 $ 44,320 $ 178,560
========= ========= =========
CORE REVENUE GROWTH RATE 5.8% 4.1% 8.6%
OPERATING MARGINS
Insurance Services 56.3% 54.2% 55.8%
Business & Government Services 21.4% 20.9% 20.9%
Marketing Services 15.8% 17.5% 22.6%
Divested & Discontinued Lines* n/a n/a n/a
ChoicePoint excluding other operating charges, as a
percentage of revenue from products and services (d) 27.4% 27.3% 27.9%
OPERATING INCOME AS A PERCENTAGE OF REVENUE
FROM PRODUCTS AND SERVICES (d) 25.3% 23.5% 23.8%
(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 2000 Q1 2001 Q2 2001
--------- --------- --------- --------- ---------
Insurance Services Revenue $ 148,017 $ 161,056 $ 189,822 $ 54,263 $ 57,283
Business & Government Svcs Revenue 150,169 187,999 233,270 61,921 64,875
Marketing Services Revenue 6,340 42,946 63,549 16,586 16,150
Royalty Revenue 6,636 6,219 6,364 1,657 1,807
--------- --------- --------- --------- ---------
Core Revenue (b) $ 311,162 $ 398,220 $ 493,005 $ 134,427 $ 140,115
========= ========= ========= ========= =========
Revenue from Divested & Discontinued Lines (a) 106,063 64,035 54,613 8,902 9,272
--------- --------- --------- --------- ---------
Revenue from products and services (c) $ 417,225 $ 462,255 $ 547,618 $ 143,329 $ 149,387
Reimbursable Expenses per EITF 01-14 (c) 6,069 38,131 37,392 8,950 8,139
--------- --------- --------- --------- ---------
Total Revenue $ 423,294 $ 500,386 $ 585,010 $ 152,279 $ 157,526
========= ========= ========= ========= =========
Insurance Services Operating Income $ 66,387 $ 77,604 $ 94,892 $ 27,004 $ 30,125
Business & Government Svcs Operating Income 7,998 2,285 29,377 10,773 10,497
Marketing Services Operating Income 1,269 10,526 19,285 4,338 5,721
Royalty Operating Income 3,903 3,483 3,804 1,051 1,191
Income from Reimbursable Expenses - - - - -
Divested & Discontinued Operating Income (a) 13,743 15,446 8,045 (580) (234)
Corporate (27,611) (33,619) (43,503) (10,843) (13,929)
--------- --------- --------- --------- ---------
Operating Income before other operating charges $ 65,689 $ 75,725 $ 111,900 $ 31,743 $ 33,371
========= ========= ========= ========= =========
Other operating charges (d) 5,049 513 (28,419) (17,865) -
--------- --------- --------- --------- ---------
OPERATING INCOME $ 70,738 $ 76,238 $ 83,481 $ 13,878 $ 33,371
========= ========= ========= ========= =========
OPERATING MARGINS
Insurance Services 44.9% 48.2% 50.0% 49.8% 52.6%
Business & Government Services 5.3% 1.2% 12.6% 17.4% 16.2%
Marketing Services 20.0% 24.5% 30.3% 26.2% 35.4%
Divested & Discontinued Lines (a) 13.0% 24.1% 14.7% -6.5% -2.5%
ChoicePoint excluding other operating charges, as a
percentage of revenue from products and services (c) 15.7% 16.4% 20.4% 22.1% 22.3%
OPERATING INCOME AS A PERCENTAGE OF REVENUE
FROM PRODUCTS AND SERVICES (c) 17.0% 16.5% 15.2% 9.7% 22.3%
OPERATING INCOME AS A PERCENTAGE OF TOTAL REVENUE 16.7% 15.2% 14.3% 9.1% 21.2%
INTERNAL GROWTH RATES (e)
Insurance Services 21.9% 18.4% 18.0% 14.9% 15.8%
Business & Government Services 19.9% 15.0% 14.2% 8.6% 1.4%
Marketing Services n/a n/a 17.0% 9.6% 2.1%
Total ChoicePoint 20.3% 16.1% 15.8% 11.2% 7.1%
Total
Q3 2001 Q4 2001 2001 Q1 2002 Q2 2002
--------- --------- --------- --------- ---------
Insurance Services Revenue $ 58,734 $ 57,447 $ 227,727 $ 64,140 $ 67,031
Business & Government Svcs Revenue 70,608 70,005 267,409 69,116 75,713
Marketing Services Revenue 22,054 21,671 76,461 23,717 27,950
Royalty Revenue 1,630 1,714 6,808 1,597 1,542
--------- --------- --------- --------- ---------
Core Revenue (b) $ 153,026 $ 150,837 $ 578,405 $ 158,570 $ 172,236
========= ========= ========= ========= =========
Revenue from Divested & Discontinued Lines (a) 5,877 192 24,243 72 -
--------- --------- --------- --------- ---------
Revenue from products and services (c) $ 158,903 $ 151,029 $ 602,648 $ 158,642 $ 172,236
Reimbursable Expenses per EITF 01-14 (c) 10,816 10,123 38,028 10,019 9,923
--------- --------- --------- --------- ---------
Total Revenue $ 169,719 $ 161,152 $ 640,676 $ 168,661 $ 182,159
========= ========= ========= ========= =========
Insurance Services Operating Income $ 31,663 $ 30,615 $ 119,407 $ 35,024 $ 35,502
Business & Government Svcs Operating Income 10,769 13,050 45,089 12,520 17,293
Marketing Services Operating Income 6,025 6,101 22,185 7,405 9,232
Royalty Operating Income 1,011 1,147 4,400 997 933
Income from Reimbursable Expenses - - - - -
Divested & Discontinued Operating Income (a) (665) (292) (1,771) (206) -
Corporate (12,525) (11,981) (49,278) (11,518) (16,885)
--------- --------- --------- --------- ---------
Operating Income before other operating charges $ 36,278 $ 38,640 $ 140,032 $ 44,222 $ 46,075
========= ========= ========= ========= =========
Other operating charges (d) (10,853) - (28,718) - (7,342)
--------- --------- --------- --------- ---------
OPERATING INCOME $ 25,425 $ 38,640 $ 111,314 $ 44,222 $ 38,733
========= ========= ========= ========= =========
OPERATING MARGINS
Insurance Services 53.9% 53.3% 52.4% 54.6% 53.0%
Business & Government Services 15.3% 18.6% 16.9% 18.1% 22.8%
Marketing Services 27.3% 28.2% 29.0% 31.2% 33.0%
Divested & Discontinued Lines (a) -11.3% -152.1% -7.3% -286.1% n/a
ChoicePoint excluding other operating charges, as a
percentage of revenue from products and services (c) 22.8% 25.6% 23.2% 27.9% 26.8%
OPERATING INCOME AS A PERCENTAGE OF REVENUE
FROM PRODUCTS AND SERVICES (c) 16.0% 25.6% 18.5% 27.9% 22.5%
OPERATING INCOME AS A PERCENTAGE OF TOTAL REVENUE 15.0% 24.0% 17.4% 26.2% 21.3%
INTERNAL GROWTH RATES (e)
Insurance Services 16.0% 18.5% 16.3% 17.5% 17.0%
Business & Government Services -3.8% -5.6% -0.1% -3.8% 5.6%
Marketing Services 2.3% -4.0% 2.3% 3.4% 5.4%
Total ChoicePoint 4.6% 4.0% 6.6% 5.7% 10.0%
Total
Q3 2002 Q4 2002 2002 Q1 2003 Q2 2003
--------- --------- --------- --------- ---------
Insurance Services Revenue $ 70,495 $ 68,616 $ 270,282 $ 76,134 $ 77,922
Business & Government Svcs Revenue 79,307 84,625 308,761 80,995 83,792
Marketing Services Revenue 27,467 26,699 105,833 25,573 25,676
Royalty Revenue 1,563 1,153 5,855 1,303 1,389
--------- --------- --------- --------- ---------
Core Revenue (b) $ 178,832 $ 181,093 $ 690,731 $ 184,005 $ 188,779
========= ========= ========= ========= =========
Revenue from Divested & Discontinued Lines (a) - - 72 - -
--------- --------- --------- --------- ---------
Revenue from products and services (c) $ 178,832 $ 181,093 $ 690,803 $ 184,005 $ 188,779
Reimbursable Expenses per EITF 01-14 (c) 10,098 8,480 38,520 10,944 10,470
--------- --------- --------- --------- ---------
Total Revenue $ 188,930 $ 189,573 $ 729,323 $ 194,949 $ 199,249
========= ========= ========= ========= =========
Insurance Services Operating Income $ 37,163 $ 36,950 $ 144,639 $ 42,436 $ 44,364
Business & Government Svcs Operating Income 19,549 20,062 69,424 15,571 18,585
Marketing Services Operating Income 8,509 7,720 32,866 6,908 7,374
Royalty Operating Income 932 464 3,326 646 626
Income from Reimbursable Expenses - - - - -
Divested & Discontinued Operating Income (a) - - (206) - -
Corporate (16,163) (15,619) (60,185) (13,758) (16,469)
--------- --------- --------- --------- ---------
Operating Income before other operating charges $ 49,990 $ 49,577 $ 189,864 $ 51,803 $ 54,480
========= ========= ========= ========= =========
Other operating charges (d) - - (7,342) - (19,817)
--------- --------- --------- --------- ---------
OPERATING INCOME $ 49,990 $ 49,577 $ 182,522 $ 51,803 $ 34,663
========= ========= ========= ========= =========
OPERATING MARGINS
Insurance Services 52.7% 53.9% 53.5% 55.7% 56.9%
Business & Government Services 24.6% 23.7% 22.5% 19.2% 22.2%
Marketing Services 31.0% 28.9% 31.1% 27.0% 28.7%
Divested & Discontinued Lines (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) 28.0% 27.4% 27.5% 28.2% 28.9%
OPERATING INCOME AS A PERCENTAGE OF REVENUE
FROM PRODUCTS AND SERVICES (c) 28.0% 27.4% 26.4% 28.2% 18.4%
OPERATING INCOME AS A PERCENTAGE OF TOTAL REVENUE 26.5% 26.2% 25.0% 26.6% 17.4%
INTERNAL GROWTH RATES (e)
Insurance Services 18.5% 18.0% 17.8% 17.2% 15.0%
Business & Government Services 12.3% 17.6% 8.4% 3.9% -2.5%
Marketing Services 4.9% 6.7% 5.2% -2.4% -13.6%
Total ChoicePoint 13.4% 15.6% 11.4% 8.1% 2.4%
Total
Q3 2003 Q4 2003 2003
--------- --------- ---------
Insurance Services Revenue $ 78,100 $ 76,968 $ 309,124
Business & Government Svcs Revenue 87,080 87,616 339,483
Marketing Services Revenue 22,631 22,762 96,642
Royalty Revenue 1,305 1,105 5,102
--------- --------- ---------
Core Revenue (b) $ 189,116 $ 188,451 $ 750,351
========= ========= =========
Revenue from Divested & Discontinued Lines (a) - - -
--------- --------- ---------
Revenue from products and services (c) $ 189,116 $ 188,451 $ 750,351
Reimbursable Expenses per EITF 01-14 (c) 12,402 11,579 45,395
--------- --------- ---------
Total Revenue $ 201,518 $ 200,030 $ 795,746
========= ========= =========
Insurance Services Operating Income $ 43,998 $ 41,720 $ 172,518
Business & Government Svcs Operating Income 18,652 18,272 71,080
Marketing Services Operating Income 3,580 3,987 21,849
Royalty Operating Income 416 380 2,068
Income from Reimbursable Expenses - - -
Divested & Discontinued Operating Income (a) - - -
Corporate (14,850) (12,936) (58,013)
--------- --------- ---------
Operating Income before other operating charges $ 51,796 $ 51,423 $ 209,502
========= ========= =========
Other operating charges (d) (4,022) (7,103) (30,942)
--------- --------- ---------
OPERATING INCOME $ 47,774 $ 44,320 $ 178,560
========= ========= =========
OPERATING MARGINS
Insurance Services 56.3% 54.2% 55.8%
Business & Government Services 21.4% 20.9% 20.9%
Marketing Services 15.8% 17.5% 22.6%
Divested & Discontinued Lines (a) n/a n/a n/a
ChoicePoint excluding other operating charges, as a
percentage of revenue from products and services (c) 27.4% 27.3% 27.9%
OPERATING INCOME AS A PERCENTAGE OF REVENUE
FROM PRODUCTS AND SERVICES (c) 25.3% 23.5% 23.8%
OPERATING INCOME AS A PERCENTAGE OF TOTAL REVENUE 23.7% 22.2% 22.4%
INTERNAL GROWTH RATES (e)
Insurance Services 10.1% 9.5% 12.8%
Business & Government Services -3.9% -7.4% -2.8%
Marketing Services -21.7% -18.7% -14.5%
Total ChoicePoint -1.2% -2.6% 1.5%
(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 2000 Q1 2001 Q2 2001
--------- --------- --------- --------- ---------
NET INCOME $ 42,315 $ 42,197 $ 43,822 $ 7,213 $ 19,921
EPS $ 0.52 $ 0.52 $ 0.52 $ 0.08 $ 0.23
Less:
Cumulative change in accounting principle, net - - - - -
Income from discontinued operations, net of tax 4,037 3,997 3,656 881 1,249
Gain on sale of discontinued operations, net - - - - -
--------- --------- --------- --------- ---------
Net income from continuing operations $ 38,278 $ 38,200 $ 40,166 $ 6,332 $ 18,672
EPS from continuing operations $ 0.47 $ 0.47 $ 0.48 $ 0.07 $ 0.21
Add back: goodwill amortization net of taxes (a) 5,401 9,397 12,885 3,118 3,198
Pro forma Net income from continuing operations (a) $ 43,679 $ 47,597 $ 53,051 $ 9,450 $ 21,870
========= ========= ========= ========= =========
Pro forma EPS from continuing operations (a) $ 0.54 $ 0.58 $ 0.63 $ 0.11 $ 0.25
Add back:
Other operating charges (b) (5,049) (513) 28,419 17,865 -
Tax provision (benefit) related to other operating
charges 2,114 (78) (8,604) (6,655) -
--------- --------- --------- --------- ---------
PRO FORMA INCOME FROM CONTINUING OPERATIONS
EXCLUDING OTHER OPERATING CHARGES (a)(b) $ 40,744 $ 47,006 $ 72,866 $ 20,660 $ 21,870
========= ========= ========= ========= =========
PRO FORMA EPS FROM CONTINUING OPERATIONS
EXCLUDING OTHER OPERATING CHARGES (a)(b) $ 0.51 $ 0.58 $ 0.87 $ 0.24 $ 0.25
Wtd Avg Shares 80,616 81,591 84,139 86,264 86,873
Total
Q3 2001 Q4 2001 2001 Q1 2002 Q2 2002
--------- --------- --------- --------- ---------
NET INCOME $ 12 $ 23,188 $ 50,334 $ 2,998 $ 24,113
EPS $ 0.00 $ 0.26 $ 0.58 $ 0.03 $ 0.27
Less:
Cumulative change in accounting principle, net - - - (24,416) -
Income from discontinued operations, net of tax 1,208 1,294 4,632 1,575 1,707
Gain on sale of discontinued operations, net - - - - -
--------- --------- --------- --------- ---------
Net income from continuing operations $ (1,196) $ 21,894 $ 45,702 $ 25,839 $ 22,406
EPS from continuing operations $ (0.01) $ 0.25 $ 0.52 $ 0.29 $ 0.25
Add back: goodwill amortization net of taxes (a) 3,203 3,119 12,638 - -
Pro forma Net income from continuing operations (a) $ 2,007 $ 25,013 $ 58,340 $ 25,839 $ 22,406
========= ========= ========= ========= =========
Pro forma EPS from continuing operations (a) $ 0.02 $ 0.28 $ 0.67 $ 0.29 $ 0.25
Add back:
Other operating charges (b) 10,853 - 28,718 - 7,342
Tax provision (benefit) related to other operating
charges 10,534 - 3,879 - (2,818)
--------- --------- --------- --------- ---------
PRO FORMA INCOME FROM CONTINUING OPERATIONS
EXCLUDING OTHER OPERATING CHARGES (a)(b) $ 23,394 $ 25,013 $ 90,937 $ 25,839 $ 26,930
========= ========= ========= ========= =========
PRO FORMA EPS FROM CONTINUING OPERATIONS
EXCLUDING OTHER OPERATING CHARGES (a)(b) $ 0.27 $ 0.28 $ 1.04 $ 0.29 $ 0.30
Wtd Avg Shares 87,457 88,101 87,151 88,969 89,692
Total
Q3 2002 Q4 2002 2002 Q1 2003 Q2 2003
--------- --------- --------- --------- ---------
NET INCOME $ 31,262 $ 31,454 $ 89,827 $ 65,175 $ 20,853
EPS $ 0.35 $ 0.35 $ 1.01 $ 0.73 $ 0.23
Less:
Cumulative change in accounting principle, net - - (24,416) - -
Income from discontinued operations, net of tax 1,704 1,585 6,571 991 -
Gain on sale of discontinued operations, net - - - 32,893 -
--------- --------- --------- --------- ---------
Net income from continuing operations $ 29,558 $ 29,869 $ 107,672 $ 31,291 $ 20,853
EPS from continuing operations $ 0.33 $ 0.34 $ 1.21 $ 0.35 $ 0.23
Add back: goodwill amortization net of taxes (a) - - - - -
Pro forma Net income from continuing operations (a) $ 29,558 $ 29,869 $ 107,672 $ 31,291 $ 20,853
========= ========= ========= ========= =========
Pro forma EPS from continuing operations (a) $ 0.33 $ 0.34 $ 1.21 $ 0.35 $ 0.23
Add back:
Other operating charges (b) - - 7,342 - 19,817
Tax provision (benefit) related to other operating
charges - - (2,818) - (7,609)
--------- --------- --------- --------- ---------
PRO FORMA INCOME FROM CONTINUING OPERATIONS
EXCLUDING OTHER OPERATING CHARGES (a)(b) $ 29,558 $ 29,869 $ 112,196 $ 31,291 $ 33,061
========= ========= ========= ========= =========
PRO FORMA EPS FROM CONTINUING OPERATIONS
EXCLUDING OTHER OPERATING CHARGES (a)(b) $ 0.33 $ 0.34 $ 1.26 $ 0.35 $ 0.37
Wtd Avg Shares 89,612 89,064 89,194 89,374 89,354
Total
Q3 2003 Q4 2003 2003
--------- --------- ---------
NET INCOME $ 29,055 $ 26,909 $ 141,992
EPS $ 0.32 $ 0.30 $ 1.58
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 $ 29,055 $ 26,909 $ 108,108
EPS from continuing operations $ 0.32 $ 0.30 $ 1.21
Add back: goodwill amortization net of taxes (a) - - -
Pro forma Net income from continuing operations (a) $ 29,055 $ 26,909 $ 108,108
========= ========= =========
Pro forma EPS from continuing operations (a) $ 0.32 $ 0.30 $ 1.21
Add back:
Other operating charges (b) 4,022 7,103 30,942
Tax provision (benefit) related to other operating
charges (1,545) (2,728) (11,882)
--------- --------- ---------
PRO FORMA INCOME FROM CONTINUING OPERATIONS
EXCLUDING OTHER OPERATING CHARGES (a)(b) $ 31,532 $ 31,284 $ 127,168
========= ========= =========
PRO FORMA EPS FROM CONTINUING OPERATIONS
EXCLUDING OTHER OPERATING CHARGES (a)(b) $ 0.35 $ 0.35 $ 1.42
Wtd Avg Shares 89,866 89,923 89,686
(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 2000 Q1 2001 Q2 2001
--------- --------- --------- --------- ---------
Merger transaction costs - - 11,579 - -
Merger personnel related costs 838 - 3,780 1,832 -
Other merger integration costs - - 3,629 2,433 -
Write down of minority investments - 817 - - -
Asset impairments 2,920 732 6,954 12,693 -
Nonmerger severance - 451 1,885 838 -
Other one-time charges - - 592 69 -
(Gain) loss on sale of business (8,807) (2,513) - - -
--------- --------- --------- --------- ---------
Total other operating charges (5,049) (513) 28,419 17,865 -
========= ========= ========= ========= =========
Total
Q3 2001 Q4 2001 2001 Q1 2002 Q2 2002
--------- --------- --------- --------- ---------
Merger transaction costs - - - - -
Merger personnel related costs - - 1,832 - -
Other merger integration costs - - 2,433 - -
Write down of minority investments - - - - 2,370
Asset impairments - - 12,693 - 2,985
Nonmerger severance - - 838 - 567
Other one-time charges - - 69 - 1,420
(Gain) loss on sale of business 10,853 - 10,853 - -
--------- --------- --------- --------- ---------
Total other operating charges 10,853 - 28,718 - 7,342
========= ========= ========= ========= =========
Total
Q3 2002 Q4 2002 2002 Q1 2003 Q2 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
Nonmerger severance - - 567 - 2,848
Other one-time charges - - 1,420 - 4,479
(Gain) loss on sale of business - - - - -
--------- --------- --------- --------- ---------
Total other operating charges - - 7,342 - 19,817
========= ========= ========= ========= =========
Total
Q3 2003 Q4 2003 2003
--------- --------- ---------
Merger transaction costs - - -
Merger personnel related costs - - -
Other merger integration costs - - -
Write down of minority investments - - -
Asset impairments 3,015 5,845 21,350
Nonmerger severance 882 624 4,354
Other one-time charges 125 634 5,238
(Gain) loss on sale of business - - -
--------- --------- ---------
Total other operating charges 4,022 7,103 30,942
========= ========= =========