.
.
.
EXHIBIT 99.2
CHOICEPOINT INC.
OPERATING RESULTS BY QUARTER
PROFORMA OPERATING INCOME WITHOUT GOODWILL AMORTIZATION (a)
Total
2000 Q1 2001 Q2 2001 Q3 2001 Q4 2001
--------- --------- --------- --------- ---------
Insurance Services Revenue $ 189,822 $ 54,263 $ 57,283 $ 58,734 $ 57,447
Business Services Revenue 206,359 54,162 55,747 58,799 57,407
Government Services Revenue 26,911 7,759 9,128 11,809 12,598
Marketing Services Revenue 63,549 16,586 16,150 22,054 21,671
Royalty Revenue 6,364 1,657 1,807 1,630 1,714
--------- --------- --------- --------- ---------
Core Revenue (c) $ 493,005 $ 134,427 $ 140,115 $ 153,026 $ 150,837
========= ========= ========= ========= =========
Revenue from Divested & Discontinued Lines (b) 54,613 8,902 9,272 5,877 192
--------- --------- --------- --------- ---------
Revenue from products and services (d) $ 547,618 $ 143,329 $ 149,387 $ 158,903 $ 151,029
Reimbursable Expenses per EITF 01-14 (d) 37,392 8,950 8,139 10,816 10,123
--------- --------- --------- --------- ---------
Total Revenue $ 585,010 $ 152,279 $ 157,526 $ 169,719 $ 161,152
========= ========= ========= ========= =========
Insurance Services Operating Income (a) $ 95,549 $ 27,257 $ 30,410 $ 31,945 $ 30,895
Business Services Operating Income (a) 31,885 11,345 11,097 10,589 12,531
Government Services Operating Income (a) 6,862 1,978 2,233 3,044 3,386
Marketing Services Operating Income (a) 23,460 5,390 6,772 7,077 7,152
Royalty Operating Income 3,804 1,051 1,191 1,011 1,147
Income from Reimbursable Expenses - - - - -
Divested & Discontinued Operating Income (a) (b) 9,250 (279) 67 (464) (292)
Corporate (43,503) (10,843) (13,929) (12,525) (11,981)
--------- --------- --------- --------- ---------
Operating Income before other operating charges $ 127,307 $ 35,899 $ 37,841 $ 40,677 $ 42,838
========= ========= ========= ========= =========
Other operating charges (e) (28,419) (17,865) - (10,853) -
--------- --------- --------- --------- ---------
OPERATING INCOME $ 98,888 $ 18,034 $ 37,841 $ 29,824 $ 42,838
========= ========= ========= ========= =========
CORE REVENUE GROWTH RATE 23.8% 14.7% 13.6% 20.9% 19.7%
OPERATING MARGINS
Insurance Services 50.3% 50.2% 53.1% 54.4% 53.8%
Business Services 15.5% 20.9% 19.9% 18.0% 21.8%
Government Services 25.5% 25.5% 24.5% 25.8% 26.9%
Marketing Services 36.9% 32.5% 41.9% 32.1% 33.0%
Divested & Discontinued Lines (b) 16.9% -3.1% 0.7% -7.9% -152.1%
ChoicePoint excluding other operating charges, as a 23.2% 25.0% 25.3% 25.6% 28.4%
percentage of revenue from products and services (d) (e)
OPERATING INCOME AS A PERCENTAGE OF REVENUE
FROM PRODUCTS AND SERVICES (d) 18.1% 12.6% 25.3% 18.8% 28.4%
Total
2001 Q1 2002 Q2 2002 Q3 2002 Q4 2002
--------- --------- --------- --------- ---------
Insurance Services Revenue $ 227,727 $ 64,140 $ 67,031 $ 70,495 $ 68,616
Business Services Revenue 226,115 57,080 62,656 60,625 59,002
Government Services Revenue 41,294 12,036 13,057 18,682 25,623
Marketing Services Revenue 76,461 23,717 27,950 27,467 26,699
Royalty Revenue 6,808 1,597 1,542 1,563 1,153
--------- --------- --------- --------- ---------
Core Revenue (c) $ 578,405 $ 158,570 $ 172,236 $ 178,832 $ 181,093
========= ========= ========= ========= =========
Revenue from Divested & Discontinued Lines (b) 24,243 72 - - -
--------- --------- --------- --------- ---------
Revenue from products and services (d) $ 602,648 $ 158,642 $ 172,236 $ 178,832 $ 181,093
Reimbursable Expenses per EITF 01-14 (d) 38,028 10,019 9,923 10,098 8,480
--------- --------- --------- --------- ---------
Total Revenue $ 640,676 $ 168,661 $ 182,159 $ 188,930 $ 189,573
========= ========= ========= ========= =========
Insurance Services Operating Income (a) $ 120,507 $ 35,024 $ 35,502 $ 37,163 $ 36,950
Business Services Operating Income (a) 45,562 10,038 14,530 14,493 11,501
Government Services Operating Income (a) 10,641 2,482 2,763 5,056 8,561
Marketing Services Operating Income (a) 26,391 7,405 9,232 8,509 7,720
Royalty Operating Income 4,400 997 933 932 464
Income from Reimbursable Expenses - - - - -
Divested & Discontinued Operating Income (a) (b) (968) (206) - - -
Corporate (49,278) (11,518) (16,885) (16,163) (15,619)
--------- --------- --------- --------- ---------
Operating Income before other operating charges $ 157,255 $ 44,222 $ 46,075 $ 49,990 $ 49,577
========= ========= ========= ========= =========
Other operating charges (e) (28,718) - (7,342) - -
--------- --------- --------- --------- ---------
OPERATING INCOME $ 128,537 $ 44,222 $ 38,733 $ 49,990 $ 49,577
========= ========= ========= ========= =========
CORE REVENUE GROWTH RATE 17.3% 18.0% 22.9% 16.9% 20.1%
OPERATING MARGINS
Insurance Services 52.9% 54.6% 53.0% 52.7% 53.9%
Business Services 20.1% 17.6% 23.2% 23.9% 19.5%
Government Services 25.8% 20.6% 21.2% 27.1% 33.4%
Marketing Services 34.5% 31.2% 33.0% 31.0% 28.9%
Divested & Discontinued Lines (b) -4.0% -286.1% n/a n/a n/a
ChoicePoint excluding other operating charges, as a 26.1% 27.9% 26.8% 28.0% 27.4%
percentage of revenue from products and services (d) (e)
OPERATING INCOME AS A PERCENTAGE OF REVENUE
FROM PRODUCTS AND SERVICES (d) 21.3% 27.9% 22.5% 28.0% 27.4%
Total
2002 Q1 2003 Q2 2003 Q3 2003 Q4 2003
--------- --------- --------- --------- ---------
Insurance Services Revenue $ 270,282 $ 76,134 $ 77,922 $ 78,100 $ 76,968
Business Services Revenue 239,363 63,859 69,014 72,069 71,206
Government Services Revenue 69,398 17,136 14,778 15,011 16,410
Marketing Services Revenue 105,833 25,573 25,676 22,631 22,762
Royalty Revenue 5,855 1,303 1,389 1,305 1,105
--------- --------- --------- --------- ---------
Core Revenue (c) $ 690,731 $ 184,005 $ 188,779 $ 189,116 $ 188,451
========= ========= ========= ========= =========
Revenue from Divested & Discontinued Lines (b) 72 - - - -
--------- --------- --------- --------- ---------
Revenue from products and services (d) $ 690,803 $ 184,005 $ 188,779 $ 189,116 $ 188,451
Reimbursable Expenses per EITF 01-14 (d) 38,520 10,944 10,470 12,402 11,579
--------- --------- --------- --------- ---------
Total Revenue $ 729,323 $ 194,949 $ 199,249 $ 201,518 $ 200,030
========= ========= ========= ========= =========
Insurance Services Operating Income (a) $ 144,639 $ 42,436 $ 44,364 $ 43,998 $ 41,720
Business Services Operating Income (a) 50,562 11,172 15,321 15,694 14,353
Government Services Operating Income (a) 18,862 4,399 3,264 2,958 3,919
Marketing Services Operating Income (a) 32,866 6,908 7,374 3,580 3,987
Royalty Operating Income 3,326 646 626 416 380
Income from Reimbursable Expenses - - - - -
Divested & Discontinued Operating Income (a) (b) (206) - - - -
Corporate (60,185) (13,758) (16,469) (14,850) (12,936)
--------- --------- --------- --------- ---------
Operating Income before other operating charges $ 189,864 $ 51,803 $ 54,480 $ 51,796 $ 51,423
========= ========= ========= ========= =========
Other operating charges (e) (7,342) - (19,817) (4,022) (7,103)
--------- --------- --------- --------- ---------
OPERATING INCOME $ 182,522 $ 51,803 $ 34,663 $ 47,774 $ 44,320
========= ========= ========= ========= =========
CORE REVENUE GROWTH RATE 19.4% 16.0% 9.6% 5.8% 4.1%
OPERATING MARGINS
Insurance Services 53.5% 55.7% 56.9% 56.3% 54.2%
Business Services 21.1% 17.5% 22.2% 21.8% 20.2%
Government Services 27.2% 25.7% 22.1% 19.7% 23.9%
Marketing Services 31.1% 27.0% 28.7% 15.8% 17.5%
Divested & Discontinued Lines (b) -286.1% n/a n/a n/a n/a
ChoicePoint excluding other operating charges, as a 27.5% 28.2% 28.9% 27.4% 27.3%
percentage of revenue from products and services (d) (e)
OPERATING INCOME AS A PERCENTAGE OF REVENUE
FROM PRODUCTS AND SERVICES (d) 26.4% 28.2% 18.4% 25.3% 23.5%
Total
2003 Q1 2004 Q2 2004
--------- --------- ---------
Insurance Services Revenue $ 309,124 $ 86,727 $ 88,129
Business Services Revenue 276,148 75,941 87,547
Government Services Revenue 63,335 17,741 23,530
Marketing Services Revenue 96,642 22,811 23,224
Royalty Revenue 5,102 1,165 1,270
--------- --------- ---------
Core Revenue (c) $ 750,351 $ 204,385 $ 223,700
========= ========= =========
Revenue from Divested & Discontinued Lines (b) - - -
--------- --------- ---------
Revenue from products and services (d) $ 750,351 $ 204,385 $ 223,700
Reimbursable Expenses per EITF 01-14 (d) 45,395 12,860 7,691
--------- --------- ---------
Total Revenue $ 795,746 $ 217,245 $ 231,391
========= ========= =========
Insurance Services Operating Income (a) $ 172,518 $ 47,260 $ 48,401
Business Services Operating Income (a) 56,540 14,357 17,052
Government Services Operating Income (a) 14,540 4,114 7,275
Marketing Services Operating Income (a) 21,849 4,287 4,408
Royalty Operating Income 2,068 204 661
Income from Reimbursable Expenses - - -
Divested & Discontinued Operating Income (a) (b) - - -
Corporate (58,013) (15,951) (18,306)
--------- --------- ---------
Operating Income before other operating charges $ 209,502 $ 54,271 $ 59,491
========= ========= =========
Other operating charges (e) (30,942) - -
--------- --------- ---------
OPERATING INCOME $ 178,560 $ 54,271 $ 59,491
========= ========= =========
CORE REVENUE GROWTH RATE 8.6% 11.1% 18.5%
OPERATING MARGINS
Insurance Services 55.8% 54.5% 54.9%
Business Services 20.5% 18.9% 19.5%
Government Services 23.0% 23.2% 30.9%
Marketing Services 22.6% 18.8% 19.0%
Divested & Discontinued Lines (b) n/a n/a n/a
ChoicePoint excluding other operating charges, as a 27.9% 26.6% 26.6%
percentage of revenue from products and services (d) (e)
OPERATING INCOME AS A PERCENTAGE OF REVENUE
FROM PRODUCTS AND SERVICES (d) 23.8% 26.6% 26.6%
(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 2000-2001 as if FASB No. 142 was effective January 1,
2000.
(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 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
(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
2000 Q1 2001 Q2 2001 Q3 2001 Q4 2001
--------- --------- --------- --------- ---------
Insurance Services Revenue $ 189,822 $ 54,263 $ 57,283 $ 58,734 $ 57,447
Business Services Revenue 206,359 54,162 55,747 58,799 57,407
Government Services Revenue 26,911 7,759 9,128 11,809 12,598
Marketing Services Revenue 63,549 16,586 16,150 22,054 21,671
Royalty Revenue 6,364 1,657 1,807 1,630 1,714
--------- --------- --------- --------- ---------
Core Revenue (b) $ 493,005 $ 134,427 $ 140,115 $ 153,026 $ 150,837
========= ========= ========= ========= =========
Revenue from Divested & Discontinued Lines (a) 54,613 8,902 9,272 5,877 192
--------- --------- --------- --------- ---------
Revenue from products and services (c) $ 547,618 $ 143,329 $ 149,387 $ 158,903 $ 151,029
Reimbursable Expenses per EITF 01-14 (c) 37,392 8,950 8,139 10,816 10,123
--------- --------- --------- --------- ---------
Total Revenue $ 585,010 $ 152,279 $ 157,526 $ 169,719 $ 161,152
========= ========= ========= ========= =========
Insurance Services Operating Income $ 94,892 $ 27,004 $ 30,125 $ 31,663 $ 30,615
Business Services Operating Income 22,515 8,795 8,325 7,816 9,756
Government Services Operating Income 6,862 1,978 2,172 2,953 3,294
Marketing Services Operating Income 19,285 4,338 5,721 6,025 6,101
Royalty Operating Income 3,804 1,051 1,191 1,011 1,147
Income from Reimbursable Expenses - - - - -
Divested & Discontinued Operating Income (a) 8,045 (580) (234) (665) (292)
Corporate (43,503) (10,843) (13,929) (12,525) (11,981)
--------- --------- --------- --------- ---------
Operating Income before other operating charges $ 111,900 $ 31,743 $ 33,371 $ 36,278 $ 38,640
========= ========= ========= ========= =========
Other operating charges (d) (28,419) (17,865) - (10,853) -
--------- --------- --------- --------- ---------
OPERATING INCOME $ 83,481 $ 13,878 $ 33,371 $ 25,425 $ 38,640
========= ========= ========= ========= =========
OPERATING MARGINS
Insurance Services 50.0% 49.8% 52.6% 53.9% 53.3%
Business Services 10.9% 16.2% 14.9% 13.3% 17.0%
Government Services 25.5% 25.5% 23.8% 25.0% 26.1%
Marketing Services 30.3% 26.2% 35.4% 27.3% 28.2%
Divested & Discontinued Lines (a) 14.7% -6.5% -2.5% -11.3% -152.1%
ChoicePoint excluding other operating charges, as a 20.4% 22.1% 22.3% 22.8% 25.6%
percentage of revenue from products and services (c) (d)
OPERATING INCOME AS A PERCENTAGE OF REVENUE
FROM PRODUCTS AND SERVICES (c) 15.2% 9.7% 22.3% 16.0% 25.6%
OPERATING INCOME AS A PERCENTAGE OF TOTAL REVENUE 14.3% 9.1% 21.2% 15.0% 24.0%
INTERNAL GROWTH RATES (e)
Insurance Services 18.0% 14.9% 15.8% 16.0% 18.5%
Business Services (f) 5.7% -0.6% -8.8% -9.3%
Government Services (f) 32.1% 16.8% 36.3% 20.0%
Marketing Services 17.0% 9.6% 2.1% 2.3% -4.0%
Total ChoicePoint 15.8% 11.2% 7.1% 4.6% 4.0%
Total
2001 Q1 2002 Q2 2002 Q3 2002 Q4 2002
--------- --------- --------- --------- ---------
Insurance Services Revenue $ 227,727 $ 64,140 $ 67,031 $ 70,495 $ 68,616
Business Services Revenue 226,115 57,080 62,656 60,625 59,002
Government Services Revenue 41,294 12,036 13,057 18,682 25,623
Marketing Services Revenue 76,461 23,717 27,950 27,467 26,699
Royalty Revenue 6,808 1,597 1,542 1,563 1,153
--------- --------- --------- --------- ---------
Core Revenue (b) $ 578,405 $ 158,570 $ 172,236 $ 178,832 $ 181,093
========= ========= ========= ========= =========
Revenue from Divested & Discontinued Lines (a) 24,243 72 - - -
--------- --------- --------- --------- ---------
Revenue from products and services (c) $ 602,648 $ 158,642 $ 172,236 $ 178,832 $ 181,093
Reimbursable Expenses per EITF 01-14 (c) 38,028 10,019 9,923 10,098 8,480
--------- --------- --------- --------- ---------
Total Revenue $ 640,676 $ 168,661 $ 182,159 $ 188,930 $ 189,573
========= ========= ========= ========= =========
Insurance Services Operating Income $ 119,407 $ 35,024 $ 35,502 $ 37,163 $ 36,950
Business Services Operating Income 34,692 10,038 14,530 14,493 11,501
Government Services Operating Income 10,397 2,482 2,763 5,056 8,561
Marketing Services Operating Income 22,185 7,405 9,232 8,509 7,720
Royalty Operating Income 4,400 997 933 932 464
Income from Reimbursable Expenses - - - - -
Divested & Discontinued Operating Income (a) (1,771) (206) - - -
Corporate (49,278) (11,518) (16,885) (16,163) (15,619)
--------- --------- --------- --------- ---------
Operating Income before other operating charges $ 140,032 $ 44,222 $ 46,075 $ 49,990 $ 49,577
========= ========= ========= ========= =========
Other operating charges (d) (28,718) - (7,342) - -
--------- --------- --------- --------- ---------
OPERATING INCOME $ 111,314 $ 44,222 $ 38,733 $ 49,990 $ 49,577
========= ========= ========= ========= =========
OPERATING MARGINS
Insurance Services 52.4% 54.6% 53.0% 52.7% 53.9%
Business Services 15.3% 17.6% 23.2% 23.9% 19.5%
Government Services 25.2% 20.6% 21.2% 27.1% 33.4%
Marketing Services 29.0% 31.2% 33.0% 31.0% 28.9%
Divested & Discontinued Lines (a) -7.3% -286.1% n/a n/a n/a
ChoicePoint excluding other operating charges, as a 23.2% 27.9% 26.8% 28.0% 27.4%
percentage of revenue from products and services (c) (d)
OPERATING INCOME AS A PERCENTAGE OF REVENUE
FROM PRODUCTS AND SERVICES (c) 18.5% 27.9% 22.5% 28.0% 27.4%
OPERATING INCOME AS A PERCENTAGE OF TOTAL REVENUE 17.4% 26.2% 21.3% 26.5% 26.2%
INTERNAL GROWTH RATES (e)
Insurance Services 16.3% 17.5% 17.0% 18.5% 18.0%
Business Services -3.5% -7.3% 1.2% 3.1% -1.2%
Government Services 25.9% 20.9% 32.4% 58.2% 103.4%
Marketing Services 2.3% 3.4% 5.4% 4.9% 6.7%
Total ChoicePoint 6.6% 5.7% 10.0% 13.4% 15.6%
Total
2002 Q1 2003 Q2 2003 Q3 2003 Q4 2003
--------- --------- --------- --------- ---------
Insurance Services Revenue $ 270,282 $ 76,134 $ 77,922 $ 78,100 $ 76,968
Business Services Revenue 239,363 63,859 69,014 72,069 71,206
Government Services Revenue 69,398 17,136 14,778 15,011 16,410
Marketing Services Revenue 105,833 25,573 25,676 22,631 22,762
Royalty Revenue 5,855 1,303 1,389 1,305 1,105
--------- --------- --------- --------- ---------
Core Revenue (b) $ 690,731 $ 184,005 $ 188,779 $ 189,116 $ 188,451
========= ========= ========= ========= =========
Revenue from Divested & Discontinued Lines (a) 72 - - - -
--------- --------- --------- --------- ---------
Revenue from products and services (c) $ 690,803 $ 184,005 $ 188,779 $ 189,116 $ 188,451
Reimbursable Expenses per EITF 01-14 (c) 38,520 10,944 10,470 12,402 11,579
--------- --------- --------- --------- ---------
Total Revenue $ 729,323 $ 194,949 $ 199,249 $ 201,518 $ 200,030
========= ========= ========= ========= =========
Insurance Services Operating Income $ 144,639 $ 42,436 $ 44,364 $ 43,998 $ 41,720
Business Services Operating Income 50,562 11,172 15,321 15,694 14,353
Government Services Operating Income 18,862 4,399 3,264 2,958 3,919
Marketing Services Operating Income 32,866 6,908 7,374 3,580 3,987
Royalty Operating Income 3,326 646 626 416 380
Income from Reimbursable Expenses - - - - -
Divested & Discontinued Operating Income (a) (206) - -
Corporate (60,185) (13,758) (16,469) (14,850) (12,936)
--------- --------- --------- --------- ---------
Operating Income before other operating charges $ 189,864 $ 51,803 $ 54,480 $ 51,796 $ 51,423
========= ========= ========= ========= =========
Other operating charges (d) (7,342) - (19,817) (4,022) (7,103)
--------- --------- --------- --------- ---------
OPERATING INCOME $ 182,522 $ 51,803 $ 34,663 $ 47,774 $ 44,320
========= ========= ========= ========= =========
OPERATING MARGINS
Insurance Services 53.5% 55.7% 56.9% 56.3% 54.2%
Business Services 21.1% 17.5% 22.2% 21.8% 20.2%
Government Services 27.2% 25.7% 22.1% 19.7% 23.9%
Marketing Services 31.1% 27.0% 28.7% 15.8% 17.5%
Divested & Discontinued Lines (a) -286.1% n/a n/a n/a n/a
ChoicePoint excluding other operating charges, as a 27.5% 28.2% 28.9% 27.4% 27.3%
percentage of revenue from products and services (c) (d)
OPERATING INCOME AS A PERCENTAGE OF REVENUE
FROM PRODUCTS AND SERVICES (c) 26.4% 28.2% 18.4% 25.3% 23.5%
OPERATING INCOME AS A PERCENTAGE OF TOTAL REVENUE 25.0% 26.6% 17.4% 23.7% 22.2%
INTERNAL GROWTH RATES (e)
Insurance Services 17.8% 17.2% 15.0% 10.1% 9.5%
Business Services -0.9% -4.2% -5.8% 0.9% 5.0%
Government Services 59.3% 42.4% 13.2% -19.6% -36.0%
Marketing Services 5.2% -2.4% -13.6% -21.7% -18.7%
Total ChoicePoint 11.4% 8.1% 2.4% -1.2% -2.6%
Total
2003 Q1 2004 Q2 2004
--------- --------- ---------
Insurance Services Revenue $ 309,124 $ 86,727 $ 88,129
Business Services Revenue 276,148 75,941 87,547
Government Services Revenue 63,335 17,741 23,530
Marketing Services Revenue 96,642 22,811 23,224
Royalty Revenue 5,102 1,165 1,270
--------- --------- ---------
Core Revenue (b) $ 750,351 $ 204,385 $ 223,700
========= ========= =========
Revenue from Divested & Discontinued Lines (a) - - -
--------- --------- ---------
Revenue from products and services (c) $ 750,351 $ 204,385 $ 223,700
Reimbursable Expenses per EITF 01-14 (c) 45,395 12,860 7,691
--------- --------- ---------
Total Revenue $ 795,746 $ 217,245 $ 231,391
========= ========= =========
Insurance Services Operating Income $ 172,518 $ 47,260 $ 48,401
Business Services Operating Income 56,540 14,357 17,052
Government Services Operating Income 14,540 4,114 7,275
Marketing Services Operating Income 21,849 4,287 4,408
Royalty Operating Income 2,068 204 661
Income from Reimbursable Expenses - - -
Divested & Discontinued Operating Income (a) - - -
Corporate (58,013) (15,951) (18,306)
--------- --------- ---------
Operating Income before other operating charges $ 209,502 $ 54,271 $ 59,491
========= ========= =========
Other operating charges (d) (30,942) - -
--------- --------- ---------
OPERATING INCOME $ 178,560 $ 54,271 $ 59,491
========= ========= =========
OPERATING MARGINS
Insurance Services 55.8% 54.5% 54.9%
Business Services 20.5% 18.9% 19.5%
Government Services 23.0% 23.2% 30.9%
Marketing Services 22.6% 18.8% 19.0%
Divested & Discontinued Lines (a) n/a n/a n/a
ChoicePoint excluding other operating charges, as a 27.9% 26.6% 26.6%
percentage of revenue from products and services (c) (d)
OPERATING INCOME AS A PERCENTAGE OF REVENUE
FROM PRODUCTS AND SERVICES (c) 23.8% 26.6% 26.6%
OPERATING INCOME AS A PERCENTAGE OF TOTAL REVENUE 22.4% 25.0% 25.7%
INTERNAL GROWTH RATES (e)
Insurance Services 12.8% 12.2% 11.4%
Business Services -1.1% 13.3% 9.2%
Government Services -8.7% -12.8% 6.3%
Marketing Services -14.5% -10.8% -9.5%
Total ChoicePoint 1.5% 6.9% 7.2%
(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.
(f) 1999 revenue data not available in this detail due to the merger with DBT
Technologies, Inc. as of 5/16/2000 that was accounted for as a
pooling-of-interests transaction
CHOICEPOINT INC.
OPERATING RESULTS BY QUARTER
Total Total Total Total
1998 1999 2000 2001
--------- --------- --------- ---------
NET INCOME $ 42,315 $ 42,197 $ 43,822 $ 50,334
EPS $ 0.52 $ 0.52 $ 0.52 $ 0.58
Less:
Cumulative change in accounting principle, net - - - -
Income from discontinued operations, net of tax 4,037 3,997 3,656 4,632
Gain on sale of discontinued operations, net - - - -
--------- --------- --------- ---------
Net income from continuing operations $ 38,278 $ 38,200 $ 40,166 $ 45,702
EPS from continuing operations $ 0.47 $ 0.47 $ 0.48 $ 0.52
Add back: goodwill amortization net of taxes (a) 5,401 9,397 12,885 12,638
Pro forma Net income from continuing operations (a) $ 43,679 $ 47,597 $ 53,051 $ 58,340
========= ========= ========= =========
Pro forma EPS from continuing operations (a) $ 0.54 $ 0.58 $ 0.63 $ 0.67
Add back:
Other operating charges (b) (5,049) (513) 28,419 28,718
Tax provision (benefit) related to other operating charges 2,114 (78) (8,604) 3,879
--------- --------- --------- ---------
PRO FORMA INCOME FROM CONTINUING OPERATIONS
EXCLUDING OTHER OPERATING CHARGES (a)(b) $ 40,744 $ 47,006 $ 72,866 $ 90,937
========= ========= ========= =========
PRO FORMA EPS FROM CONTINUING OPERATIONS
EXCLUDING OTHER OPERATING CHARGES (a)(b) $ 0.51 $ 0.58 $ 0.87 $ 1.04
Wtd Avg Shares 80,616 81,591 84,139 87,151
Total
Q1 2002 Q2 2002 Q3 2002 Q4 2002 2002
--------- --------- --------- --------- ---------
NET INCOME $ 2,998 $ 24,113 $ 31,262 $ 31,454 $ 89,827
EPS $ 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 1,575 1,707 1,704 1,585 6,571
Gain on sale of discontinued operations, net - - - - -
--------- --------- --------- --------- ---------
Net income from continuing operations $ 25,839 $ 22,406 $ 29,558 $ 29,869 $ 107,672
EPS from continuing operations $ 0.29 $ 0.25 $ 0.33 $ 0.34 $ 1.21
Add back: goodwill amortization net of taxes (a) - - - - -
Pro forma Net income from continuing operations (a) $ 25,839 $ 22,406 $ 29,558 $ 29,869 $ 107,672
========= ========= ========= ========= =========
Pro forma EPS from continuing operations (a) $ 0.29 $ 0.25 $ 0.33 $ 0.34 $ 1.21
Add back:
Other operating charges (b) - 7,342 - - 7,342
Tax provision (benefit) related to other operating charges - (2,818) - - (2,818)
--------- --------- --------- --------- ---------
PRO FORMA INCOME FROM CONTINUING OPERATIONS
EXCLUDING OTHER OPERATING CHARGES (a)(b) $ 25,839 $ 26,930 $ 29,558 $ 29,869 $ 112,196
========= ========= ========= ========= =========
PRO FORMA EPS FROM CONTINUING OPERATIONS
EXCLUDING OTHER OPERATING CHARGES (a)(b) $ 0.29 $ 0.30 $ 0.33 $ 0.34 $ 1.26
Wtd Avg Shares 88,969 89,692 89,612 89,064 89,194
Total
Q1 2003 Q2 2003 Q3 2003 Q4 2003 2003
--------- --------- --------- --------- ---------
NET INCOME $ 65,175 $ 20,853 $ 29,055 $ 26,909 $ 141,992
EPS $ 0.73 $ 0.23 $ 0.32 $ 0.30 $ 1.58
Less:
Cumulative change in accounting principle, net - - - - -
Income from discontinued operations, net of tax 991 - - - 991
Gain on sale of discontinued operations, net 32,893 - - - 32,893
--------- --------- --------- --------- ---------
Net income from continuing operations $ 31,291 $ 20,853 $ 29,055 $ 26,909 $ 108,108
EPS from continuing operations $ 0.35 $ 0.23 $ 0.32 $ 0.30 $ 1.21
Add back: goodwill amortization net of taxes (a) - - - - -
Pro forma Net income from continuing operations (a) $ 31,291 $ 20,853 $ 29,055 $ 26,909 $ 108,108
========= ========= ========= ========= =========
Pro forma EPS from continuing operations (a) $ 0.35 $ 0.23 $ 0.32 $ 0.30 $ 1.21
Add back:
Other operating charges (b) - 19,817 4,022 7,103 30,942
Tax provision (benefit) related to other operating charges - (7,609) (1,545) (2,728) (11,882)
--------- --------- --------- --------- ---------
PRO FORMA INCOME FROM CONTINUING OPERATIONS
EXCLUDING OTHER OPERATING CHARGES (a)(b) $ 31,291 $ 33,061 $ 31,532 $ 31,284 $ 127,168
========= ========= ========= ========= =========
PRO FORMA EPS FROM CONTINUING OPERATIONS
EXCLUDING OTHER OPERATING CHARGES (a)(b) $ 0.35 $ 0.37 $ 0.35 $ 0.35 $ 1.42
Wtd Avg Shares 89,374 89,354 89,866 89,923 89,686
Q1 2004 Q2 2004
--------- ---------
NET INCOME $ 33,262 $ 36,323
EPS $ 0.37 $ 0.40
Less:
Cumulative change in accounting principle, net - -
Income from discontinued operations, net of tax - -
Gain on sale of discontinued operations, net - -
--------- ---------
Net income from continuing operations $ 33,262 $ 36,323
EPS from continuing operations $ 0.37 $ 0.40
Add back: goodwill amortization net of taxes (a) - -
Pro forma Net income from continuing operations (a) $ 33,262 $ 36,323
========= =========
Pro forma EPS from continuing operations (a) $ 0.37 $ 0.40
Add back:
Other operating charges (b) - -
Tax provision (benefit) related to other operating charges - -
--------- ---------
PRO FORMA INCOME FROM CONTINUING OPERATIONS
EXCLUDING OTHER OPERATING CHARGES (a)(b) $ 33,262 $ 36,323
========= =========
PRO FORMA EPS FROM CONTINUING OPERATIONS
EXCLUDING OTHER OPERATING CHARGES (a)(b) $ 0.37 $ 0.40
Wtd Avg Shares 90,368 91,282
(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 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) - 10,853
--------- --------- --------- ---------
Total other operating charges (5,049) (513) 28,419 28,718
========= ========= ========= =========
Total
Q1 2002 Q2 2002 Q3 2002 Q4 2002 2002
--------- --------- --------- --------- ---------
Merger transaction costs - - - - -
Merger personnel related costs - - - - -
Other merger integration costs - - - - -
Write down of minority investments - 2,370 - - 2,370
Asset impairments - 2,985 - - 2,985
Nonmerger severance - 567 - - 567
Other one-time charges - 1,420 - - 1,420
(Gain) loss on sale of business - - - - -
--------- --------- --------- --------- ---------
Total other operating charges - 7,342 - - 7,342
========= ========= ========= ========= =========
Total
Q1 2003 Q2 2003 Q3 2003 Q4 2003 2003 Q1 2004 Q2 2004
--------- --------- --------- --------- --------- --------- ---------
Merger transaction costs - - - - - - -
Merger personnel related costs - - - - - - -
Other merger integration costs - - - - - - -
Write down of minority investments - - - - - - -
Asset impairments - 12,490 3,015 5,845 21,350 - -
Nonmerger severance - 2,848 882 624 4,354 - -
Other one-time charges - 4,479 125 634 5,238 - -
(Gain) loss on sale of business - - - - - - -
--------- --------- --------- --------- --------- --------- ---------
Total other operating charges - 19,817 4,022 7,103 30,942 - -
========= ========= ========= ========= ========= ========= =========