.
.
.
CHOICEPOINT INC. EXHIBIT 99.2
OPERATING RESULTS BY QUARTER
ADJUSTED OPERATING INCOME WITHOUT GOODWILL AMORTIZATION (A)
Total Total Total
2000 2001 Q1 2002 Q2 2002 Q3 2002 Q4 2002 2002
--------- --------- --------- --------- --------- --------- ---------
Insurance Services Revenue $ 189,822 $ 227,727 $ 64,140 $ 67,031 $ 70,495 $ 68,616 $ 270,282
Business Services Revenue 206,359 226,115 57,080 62,656 60,625 59,002 239,363
Government Services Revenue 26,911 41,294 12,036 13,057 18,682 25,623 69,398
Marketing Services Revenue 63,549 76,461 23,717 27,950 27,467 26,699 105,833
Royalty Revenue 6,364 6,808 1,597 1,542 1,563 1,153 5,855
--------- --------- --------- --------- --------- --------- ---------
Core Revenue (c) $ 493,005 $ 578,405 $ 158,570 $ 172,236 $ 178,832 $ 181,093 $ 690,731
========= ========= ========= ========= ========= ========= =========
Revenue from Divested &
Discontinued Lines (b) 54,613 24,243 72 -- -- -- 72
--------- --------- --------- --------- --------- --------- ---------
Service Revenue (d) $ 547,618 $ 602,648 $ 158,642 $ 172,236 $ 178,832 $ 181,093 $ 690,803
Reimbursable Expenses per EITF 01-14 (d) 37,392 38,028 10,019 9,923 10,098 8,480 38,520
--------- --------- --------- --------- --------- --------- ---------
Total Revenue $ 585,010 $ 640,676 $ 168,661 $ 182,159 $ 188,930 $ 189,573 $ 729,323
========= ========= ========= ========= ========= ========= =========
Insurance Services Operating Income (a) $ 95,549 $ 120,507 $ 35,024 $ 35,502 $ 37,163 $ 36,950 $ 144,639
Business Services Operating Income (a) 31,885 45,562 10,038 14,530 14,493 11,501 50,562
Government Services Operating Income (a) 6,862 10,641 2,482 2,763 5,056 8,561 18,862
Marketing Services Operating Income (a) 23,460 26,391 7,405 9,232 8,509 7,720 32,866
Royalty Operating Income 3,804 4,400 997 933 932 464 3,326
Income from Reimbursable Expenses -- -- -- -- -- -- --
Divested & Discontinued Operating
Income (a) (b) 9,250 (968) (206) -- -- -- (206)
Corporate (43,503) (49,278) (11,518) (16,885) (16,163) (15,619) (60,185)
--------- --------- --------- --------- --------- --------- ---------
Operating Income before other
operating charges $ 127,307 $ 157,255 $ 44,222 $ 46,075 $ 49,990 $ 49,577 $ 189,864
========= ========= ========= ========= ========= ========= =========
Other operating charges (e) (28,419) (28,718) -- (7,342) -- -- (7,342)
--------- --------- --------- --------- --------- --------- ---------
OPERATING INCOME $ 98,888 $ 128,537 $ 44,222 $ 38,733 $ 49,990 $ 49,577 $ 182,522
========= ========= ========= ========= ========= ========= =========
CORE REVENUE GROWTH RATE 23.8% 17.3% 18.0% 22.9% 16.9% 20.1% 19.4%
OPERATING MARGINS
Insurance Services 50.3% 52.9% 54.6% 53.0% 52.7% 53.9% 53.5%
Business Services 15.5% 20.1% 17.6% 23.2% 23.9% 19.5% 21.1%
Government Services 25.5% 25.8% 20.6% 21.2% 27.1% 33.4% 27.2%
Marketing Services 36.9% 34.5% 31.2% 33.0% 31.0% 28.9% 31.1%
Divested & Discontinued Lines (b) 16.9% -4.0% -286.1% n/a n/a n/a -286.1%
ChoicePoint excluding other
operating charges, as a
percentage of service revenue (d) (e) 23.2% 26.1% 27.9% 26.8% 28.0% 27.4% 27.5%
OPERATING INCOME AS A PERCENTAGE
OF SERVICE REVENUE (D) 18.1% 21.3% 27.9% 22.5% 28.0% 27.4% 26.4%
Total
Q1 2003 Q2 2003 Q3 2003 Q4 2003 2003 Q1 2004 Q2 2004 Q3 2004
-------- -------- -------- -------- -------- -------- -------- --------
Insurance Services Revenue $ 76,134 $ 77,922 $ 78,100 $ 76,968 $309,124 $ 86,727 $ 88,129 $ 90,880
Business Services Revenue 63,859 69,014 72,069 71,206 276,148 75,941 87,547 94,041
Government Services Revenue 17,136 14,778 15,011 16,410 63,335 17,741 23,530 21,590
Marketing Services Revenue 25,573 25,676 22,631 22,762 96,642 22,811 23,224 23,585
Royalty Revenue 1,303 1,389 1,305 1,105 5,102 1,165 1,270 1,370
-------- -------- -------- -------- -------- -------- -------- --------
Core Revenue (c) $184,005 $188,779 $189,116 $188,451 $750,351 $204,385 $223,700 $231,466
======== ======== ======== ======== ======== ======== ======== ========
Revenue from Divested &
Discontinued Lines (b) -- -- -- -- -- -- -- --
-------- -------- -------- -------- -------- -------- -------- --------
Service Revenue (d) $184,005 $188,779 $189,116 $188,451 $750,351 $204,385 $223,700 $231,466
Reimbursable Expenses per
EITF 01-14 (d) 10,944 10,470 12,402 11,579 45,395 12,860 7,691 6,149
-------- -------- -------- -------- -------- -------- -------- --------
Total Revenue $194,949 $199,249 $201,518 $200,030 $795,746 $217,245 $231,391 $237,615
======== ======== ======== ======== ======== ======== ======== ========
Insurance Services Operating
Income (a) $ 42,436 $ 44,364 $ 43,998 $ 41,720 $172,518 $ 47,260 $ 48,401 $ 50,714
Business Services Operating
Income (a) 11,172 15,321 15,694 14,353 56,540 14,357 17,052 21,084
Government Services Operating
Income (a) 4,399 3,264 2,958 3,919 14,540 4,114 7,275 4,726
Marketing Services Operating
Income (a) 6,908 7,374 3,580 3,987 21,849 4,287 4,408 4,583
Royalty Operating Income 646 626 416 380 2,068 204 661 798
Income from Reimbursable Expenses -- -- -- -- -- -- -- --
Divested & Discontinued Operating
Income (a) (b) -- -- -- -- -- -- -- --
Corporate (13,758) (16,469) (14,850) (12,936) (58,013) (15,951) (18,306) (17,869)
-------- -------- -------- -------- -------- -------- -------- --------
Operating Income before other
operating charges $ 51,803 $ 54,480 $ 51,796 $ 51,423 $209,502 $ 54,271 $ 59,491 $ 64,036
======== ======== ======== ======== ======== ======== ======== ========
Other operating charges (e) -- (19,817) (4,022) (7,103) (30,942) -- -- --
-------- -------- -------- -------- -------- -------- -------- --------
OPERATING INCOME $ 51,803 $ 34,663 $ 47,774 $ 44,320 $178,560 $ 54,271 $ 59,491 $ 64,036
======== ======== ======== ======== ======== ======== ======== ========
CORE REVENUE GROWTH RATE 16.0% 9.6% 5.8% 4.1% 6.6% 11.1% 18.5% 22.4%
OPERATING MARGINS
Insurance Services 55.7% 56.9% 56.3% 54.2% 55.8% 54.5% 54.9% 55.8%
Business Services 17.5% 22.2% 21.8% 20.2% 20.5% 18.9% 19.5% 22.4%
Government Services 25.7% 22.1% 19.7% 23.9% 23.0% 23.2% 30.9% 21.9%
Marketing Services 27.0% 28.7% 15.8% 17.5% 22.6% 18.8% 19.0% 19.4%
Divested & Discontinued Lines (b) n/a n/a n/a n/a n/a n/a n/a n/a
ChoicePoint excluding other
operating charges, as a
percentage of service revenue (d) (e) 28.2% 28.9% 27.4% 27.3% 27.9% 26.6% 26.6% 27.7%
OPERATING INCOME AS A PERCENTAGE
OF SERVICE REVENUE (D) 28.2% 18.4% 25.3% 23.5% 23.8% 26.6% 26.6% 27.7%
(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 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
2000 2001 Q1 2002 Q2 2002 Q3 2002 Q4 2002
--------- --------- --------- --------- --------- ---------
Insurance Services Revenue $ 189,822 $ 227,727 $ 64,140 $ 67,031 $ 70,495 $ 68,616
Business Services Revenue 206,359 226,115 57,080 62,656 60,625 59,002
Government Services Revenue 26,911 41,294 12,036 13,057 18,682 25,623
Marketing Services Revenue 63,549 76,461 23,717 27,950 27,467 26,699
Royalty Revenue 6,364 6,808 1,597 1,542 1,563 1,153
--------- --------- --------- --------- --------- ---------
Core Revenue (b) $ 493,005 $ 578,405 $ 158,570 $ 172,236 $ 178,832 $ 181,093
========= ========= ========= ========= ========= =========
Revenue from Divested & Discontinued Lines (a) 54,613 24,243 72 -- -- --
--------- --------- --------- --------- --------- ---------
Service revenue (c) $ 547,618 $ 602,648 $ 158,642 $ 172,236 $ 178,832 $ 181,093
Reimbursable Expenses per EITF 01-14 (c) 37,392 38,028 10,019 9,923 10,098 8,480
--------- --------- --------- --------- --------- ---------
Total Revenue $ 585,010 $ 640,676 $ 168,661 $ 182,159 $ 188,930 $ 189,573
========= ========= ========= ========= ========= =========
Insurance Services Operating Income $ 94,892 $ 119,407 $ 35,024 $ 35,502 $ 37,163 $ 36,950
Business Services Operating Income 22,515 34,692 10,038 14,530 14,493 11,501
Government Services Operating Income 6,862 10,397 2,482 2,763 5,056 8,561
Marketing Services Operating Income 19,285 22,185 7,405 9,232 8,509 7,720
Royalty Operating Income 3,804 4,400 997 933 932 464
Income from Reimbursable Expenses -- -- -- -- -- --
Divested & Discontinued Operating Income (a) 8,045 (1,771) (206) -- -- --
Corporate (43,503) (49,278) (11,518) (16,885) (16,163) (15,619)
--------- --------- --------- --------- --------- ---------
Operating Income before other operating charges $ 111,900 $ 140,032 $ 44,222 $ 46,075 $ 49,990 $ 49,577
========= ========= ========= ========= ========= =========
Other operating charges (d) (28,419) (28,718) -- (7,342) -- --
--------- --------- --------- --------- --------- ---------
Operating Income $ 83,481 $ 111,314 $ 44,222 $ 38,733 $ 49,990 $ 49,577
========= ========= ========= ========= ========= =========
Operating Margins
Insurance Services 50.0% 52.4% 54.6% 53.0% 52.7% 53.9%
Business Services 10.9% 15.3% 17.6% 23.2% 23.9% 19.5%
Government Services 25.5% 25.2% 20.6% 21.2% 27.1% 33.4%
Marketing Services 30.3% 29.0% 31.2% 33.0% 31.0% 28.9%
Divested & Discontinued Lines (a) 14.7% -7.3% -286.1% n/a n/a n/a
ChoicePoint excluding other operating charges, as a 20.4% 23.2% 27.9% 26.8% 28.0% 27.4%
percentage of service revenue (c) (d)
Operating income as a percentage of service revenue (c) 15.2% 18.5% 27.9% 22.5% 28.0% 27.4%
Operating income as a percentage of total revenue 14.3% 17.4% 26.2% 21.3% 26.5% 26.2%
Internal Growth Rates (e)
Insurance Services 18.0% 16.3% 17.5% 17.0% 18.5% 18.0%
Business Services (f) -3.5% -7.3% 1.2% 3.1% -1.2%
Government Services (f) 25.9% 20.9% 32.4% 58.2% 103.4%
Marketing Services 17.0% 2.3% 3.4% 5.4% 4.9% 6.7%
Total ChoicePoint 15.8% 6.6% 5.7% 10.0% 13.4% 15.6%
Total Total
2002 Q1 2003 Q2 2003 Q3 2003 Q4 2003 2003
--------- --------- --------- --------- --------- ---------
Insurance Services Revenue $ 270,282 $ 76,134 $ 77,922 $ 78,100 $ 76,968 $ 309,124
Business Services Revenue 239,363 63,859 69,014 72,069 71,206 276,148
Government Services Revenue 69,398 17,136 14,778 15,011 16,410 63,335
Marketing Services Revenue 105,833 25,573 25,676 22,631 22,762 96,642
Royalty Revenue 5,855 1,303 1,389 1,305 1,105 5,102
--------- --------- --------- --------- --------- ---------
Core Revenue (b) $ 690,731 $ 184,005 $ 188,779 $ 189,116 $ 188,451 $ 750,351
========= ========= ========= ========= ========= =========
Revenue from Divested & Discontinued Lines (a) 72 -- -- -- -- --
--------- --------- --------- --------- --------- ---------
Service revenue (c) $ 690,803 $ 184,005 $ 188,779 $ 189,116 $ 188,451 $ 750,351
Reimbursable Expenses per EITF 01-14 (c) 38,520 10,944 10,470 12,402 11,579 45,395
--------- --------- --------- --------- --------- ---------
Total Revenue $ 729,323 $ 194,949 $ 199,249 $ 201,518 $ 200,030 $ 795,746
========= ========= ========= ========= ========= =========
Insurance Services Operating Income $ 144,639 $ 42,436 $ 44,364 $ 43,998 $ 41,720 $ 172,518
Business Services Operating Income 50,562 11,172 15,321 15,694 14,353 56,540
Government Services Operating Income 18,862 4,399 3,264 2,958 3,919 14,540
Marketing Services Operating Income 32,866 6,908 7,374 3,580 3,987 21,849
Royalty Operating Income 3,326 646 626 416 380 2,068
Income from Reimbursable Expenses -- -- -- -- -- --
Divested & Discontinued Operating Income (a) (206) -- -- -- -- --
Corporate (60,185) (13,758) (16,469) (14,850) (12,936) (58,013)
--------- --------- --------- --------- --------- ---------
Operating Income before other operating charges $ 189,864 $ 51,803 $ 54,480 $ 51,796 $ 51,423 $ 209,502
========= ========= ========= ========= ========= =========
Other operating charges (d) (7,342) -- (19,817) (4,022) (7,103) (30,942)
--------- --------- --------- --------- --------- ---------
Operating Income $ 182,522 $ 51,803 $ 34,663 $ 47,774 $ 44,320 $ 178,560
========= ========= ========= ========= ========= =========
Operating Margins
Insurance Services 53.5% 55.7% 56.9% 56.3% 54.2% 55.8%
Business Services 21.1% 17.5% 22.2% 21.8% 20.2% 20.5%
Government Services 27.2% 25.7% 22.1% 19.7% 23.9% 23.0%
Marketing Services 31.1% 27.0% 28.7% 15.8% 17.5% 22.6%
Divested & Discontinued Lines (a) -286.1% n/a 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% 27.9%
percentage of service revenue (c) (d)
Operating income as a percentage of service revenue (c) 26.4% 28.2% 18.4% 25.3% 23.5% 23.8%
Operating income as a percentage of total revenue 25.0% 26.6% 17.4% 23.7% 22.2% 22.4%
Internal Growth Rates (e)
Insurance Services 17.8% 17.2% 15.0% 10.1% 9.5% 12.8%
Business Services -0.9% -4.2% -5.8% 0.9% 5.0% -1.1%
Government Services 59.3% 42.4% 13.2% -19.6% -36.0% -8.7%
Marketing Services 5.2% -2.4% -13.6% -21.7% -18.7% -14.5%
Total ChoicePoint 11.4% 8.1% 2.4% -1.2% -2.6% 1.5%
Q1 2004 Q2 2004 Q3 2004
--------- --------- ---------
Insurance Services Revenue $ 86,727 $ 88,129 $ 90,880
Business Services Revenue 75,941 87,547 94,041
Government Services Revenue 17,741 23,530 21,590
Marketing Services Revenue 22,811 23,224 23,585
Royalty Revenue 1,165 1,270 1,370
--------- --------- ---------
Core Revenue (b) $ 204,385 $ 223,700 $ 231,466
========= ========= =========
Revenue from Divested & Discontinued Lines (a) -- -- --
--------- --------- ---------
Service revenue (c) $ 204,385 $ 223,700 $ 231,466
Reimbursable Expenses per EITF 01-14 (c) 12,860 7,691 6,149
--------- --------- ---------
Total Revenue $ 217,245 $ 231,391 $ 237,615
========= ========= =========
Insurance Services Operating Income $ 47,260 $ 48,401 $ 50,714
Business Services Operating Income 14,357 17,052 21,084
Government Services Operating Income 4,114 7,275 4,726
Marketing Services Operating Income 4,287 4,408 4,583
Royalty Operating Income 204 661 798
Income from Reimbursable Expenses -- -- --
Divested & Discontinued Operating Income (a)
Corporate (15,951) (18,306) (17,869)
--------- --------- ---------
Operating Income before other operating charges $ 54,271 $ 59,491 $ 64,036
---------
Other operating charges (d) -- -- --
--------- --------- ---------
Operating Income $ 54,271 $ 59,491 $ 64,036
========= ========= =========
Operating Margins
Insurance Services 54.5% 54.9% 55.8%
Business Services 18.9% 19.5% 22.4%
Government Services 23.2% 30.9% 21.9%
Marketing Services 18.8% 19.0% 19.4%
Divested & Discontinued Lines (a) n/a n/a n/a
ChoicePoint excluding other operating charges, as a 26.6% 26.6% 27.7%
percentage of service revenue (c) (d)
Operating income as a percentage of service revenue (c) 26.6% 26.6% 27.7%
Operating income as a percentage of total revenue 25.0% 25.7% 26.9%
Internal Growth Rates (e)
Insurance Services 12.2% 11.4% 14.8%
Business Services 13.3% 9.2% 8.1%
Government Services -12.8% 6.3% -0.8%
Marketing Services -10.8% -9.5% 4.2%
Total ChoicePoint 6.9% 7.2% 9.7%
(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.
(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 Q1 2002 Q2 2002 Q3 2002 Q4 2002
------- ------- ------- ------- ------- ------- ------- -------
NET INCOME $42,315 $42,197 $43,822 $50,334 $ 2,998 $24,113 $31,262 $31,454
EPS $ 0.52 $ 0.52 $ 0.52 $ 0.58 $ 0.03 $ 0.27 $ 0.35 $ 0.35
Less:
Cumulative change in accounting principle, net -- -- -- -- (24,416) -- -- --
Income from discontinued operations, net of tax 4,037 3,997 3,656 4,632 1,575 1,707 1,704 1,585
Gain on sale of discontinued operations, net -- -- -- -- -- -- -- --
------- ------- ------- ------- ------- ------- ------- -------
Net income from continuing operations $38,278 $38,200 $40,166 $45,702 $25,839 $22,406 $29,558 $29,869
EPS from continuing operations $ 0.47 $ 0.47 $ 0.48 $ 0.52 $ 0.29 $ 0.25 $ 0.33 $ 0.34
Add back: goodwill amortization net of taxes (a) 5,401 9,397 12,885 12,638 -- -- --
Net income from continuing operations excluding
goodwill amortization (a) $43,679 $47,597 $53,051 $58,340 $25,839 $22,406 $29,558 $29,869
======= ======= ======= ======= ======= ======= ======= =======
EPS from continuing operations excluding
goodwill amortization (a) $ 0.54 $ 0.58 $ 0.63 $ 0.67 $ 0.29 $ 0.25 $ 0.33 $ 0.34
Add back:
Other operating charges (b) (5,049) (513) 28,419 28,718 -- 7,342 -- --
Tax provision (benefit) related to other
operating charges 2,114 (78) (8,604) 3,879 -- (2,818) -- --
------- ------- ------- ------- ------- ------- ------- -------
INCOME FROM CONTINUING OPERATIONS EXCLUDING OTHER
OPERATING CHARGES & GOODWILL AMORTIZATION (A)(B) $40,744 $47,006 $72,866 $90,937 $25,839 $26,930 $29,558 $29,869
======= ======= ======= ======= ======= ======= ======= =======
EPS FROM CONTINUING OPERATIONS EXCLUDING OTHER
OPERATING CHARGES & GOODWILL AMORTIZATION (A)(B) $ 0.51 $ 0.58 $ 0.87 $ 1.04 $ 0.29 $ 0.30 $ 0.33 $ 0.34
Wtd Avg Shares 80,616 81,591 84,139 87,151 88,969 89,692 89,612 89,064
Total Total
2002 Q1 2003 Q2 2003 Q3 2003 Q4 2003 2003 Q1 2004 Q2 2004 Q3 2004
--------- ------- ------- ------- ------- --------- ------- ------- -------
NET INCOME $ 89,827 $65,175 $20,853 $29,055 $26,909 $ 141,992 $33,262 $36,323 $39,153
EPS $ 1.01 $ 0.73 $ 0.23 $ 0.32 $ 0.30 $ 1.58 $ 0.37 $ 0.40 $ 0.43
Less:
Cumulative change in accounting
principle, net (24,416) -- -- -- -- -- -- --
Income from discontinued operations,
net of tax 6,571 991 -- -- -- 991 -- --
Gain on sale of discontinued
operations, net -- 32,893 -- -- -- 32,893 -- -- --
--------- ------- ------- ------- ------- --------- ------- ------- -------
Net income from continuing
operations $ 107,672 $31,291 $20,853 $29,055 $26,909 $ 108,108 $33,262 $36,323 $39,153
EPS from continuing operations $ 1.21 $ 0.35 $ 0.23 $ 0.32 $ 0.30 $ 1.21 $ 0.37 $ 0.40 $ 0.43
Add back: goodwill amortization net of
taxes (a) -- -- -- -- -- -- -- -- --
Net income from continuing operations
excluding goodwill amortization (a) $ 107,672 $31,291 $20,853 $29,055 $26,909 $ 108,108 $33,262 $36,323 $39,153
========= ======= ======= ======= ======= ========= ======= ======= =======
EPS from continuing operations excluding
goodwill amortization (a) $ 1.21 $ 0.35 $ 0.23 $ 0.32 $ 0.30 $ 1.21 $ 0.37 $ 0.40 $ 0.43
Add back:
Other operating charges (b) 7,342 -- 19,817 4,022 7,103 30,942 -- -- --
Tax provision (benefit) related to other
operating charges (2,818) -- (7,609) (1,545) (2,728) (11,882) -- -- --
--------- ------- ------- ------- ------- --------- ------- ------- -------
INCOME FROM CONTINUING OPERATIONS
EXCLUDING OTHER OPERATING CHARGES
& GOODWILL AMORTIZATION $ 112,196 $31,291 $33,061 $31,532 $31,284 $ 127,168 $33,262 $36,323 $39,153
========= ======= ======= ======= ======= ========= ======= ======= =======
EPS FROM CONTINUING OPERATIONS
EXCLUDING OTHER OPERATING CHARGES
& GOODWILL AMORTIZATION $ 1.26 $ 0.35 $ 0.37 $ 0.35 $ 0.35 $ 1.42 $ 0.37 $ 0.40 $ 0.43
Wtd Avg Shares 89,194 89,374 89,354 89,866 89,923 89,686 90,368 91,282 91,542
(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 Q1 2002 Q2 2002 Q3 2002 Q4 2002
------ ------ ------ ------ ------- ------- ------- -------
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 -- -- -- 2,370 -- --
Asset impairments 2,920 732 6,954 12,693 -- 2,985 -- --
Nonmerger severance -- 451 1,885 838 -- 567 -- --
Other one-time charges -- -- 592 69 -- 1,420 -- --
(Gain) loss on sale of business (8,807) (2,513) -- 10,853 -- -- -- --
------ ------ ------ ------ --- ----- --- ---
Total other operating charges (5,049) (513) 28,419 28,718 -- 7,342 -- --
------ ------ ------ ------ --- ----- --- ---
Total Total
2002 Q1 2003 Q2 2003 Q3 2003 Q4 2003 2003 Q1 2004 Q2 2004 Q3 2004
----- ------- ------- ------- ------- ------ ------- ------- -------
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 5,845 21,350 -- -- --
Nonmerger severance 567 -- 2,848 882 624 4,354 -- -- --
Other one-time charges 1,420 -- 4,479 125 634 5,238 -- -- --
(Gain) loss on sale of business -- -- -- -- -- -- -- -- --
----- --- ------ ----- ----- ------ --- --- ---
Total other operating charges 7,342 -- 19,817 4,022 7,103 30,942 -- -- --
----- --- ------ ----- ----- ------ --- --- ---