ChoicePoint Releases Fourth Quarter Results.Business Editors/Technology Writers ALPHARETTA, Ga.--(BUSINESS WIRE)--Jan. 18, 2000 ChoicePoint Inc. (NYSE NYSE See: New York Stock Exchange : CPS (1) (Characters Per Second) The measurement of the speed of a serial printer or the speed of a data transfer between hardware devices or over a communications channel. CPS is equivalent to bytes per second. ) today reported continued strong growth in revenue and earnings for the fourth quarter and full year 1999. Revenues from continuing operations continuing operations Parts of a business that are expected to be maintained as an ongoing segment of an overall business operation. Income and losses from continuing operations are reported separately if any segments have been discontinued during the for the quarter increased 24.3 % to $111.9 million from $90.0 million in the fourth quarter of 1998. Operating income Operating Income The profit realized from a business' own operations. Notes: This would not include income from things such as investments in other firms. Also referred to as operating profit or recurring profit. before unusual items increased 25.9% to $22.0 million, while operating margins Operating Margin A ratio used to measure a company's pricing strategy and operating efficiency. Calculated by: before unusual items increased to 19.6% in the quarter from 16.9% in the fourth quarter of 1998. Earnings before interest, taxes, depreciation and amortization Earnings before interest, taxes, depreciation and amortization (EBITDA) is a non-GAAP metric that can be used to evaluate a company's profitability.
A method of performance evaluation that adjusts accounting performance for investors' required return on investment. Suppose a division produces a 12% return on capital invested. (EVA Eva to marry winner of singing contest. [Ger. Opera: Wagner, Meistersinger, Westerman, 225–228] See : Prize 1. Eva - A toy ALGOL-like language used in "Formal Specification of Programming Languages: A Panoramic Primer", F.G. ) was $2.9 million. Earnings per share (EPS (Encapsulated PostScript) A PostScript file format used to transfer a graphic image between applications and platforms. EPS files contain PostScript code as well as an optional preview image in TIFF, WMF, PICT or EPSI, the latter being an ASCII-only format. ) was $0.36 as compared to EPS in the fourth quarter of 1998, excluding the gain on sale of business units and unusual items, of $0.28. Chief Operating Officer Chief Operating Officer (COO) The officer of a firm responsible for day-to-day management, usually the president or an executive vice-president. Doug Curling curling, winter sport, similar in principle to bowls and quoits (see horseshoe pitching), played on an ice court by teams of four. Each player hurls a squat, circular stone—weighing 38 lb (17. said, "We had a strong fourth quarter. Top-line growth rates Growth Rates The compounded annualized rate of growth of a company's revenues, earnings, dividends, or other figures. Notes: Remember, historically high growth rates don't always mean a high rate of growth looking into the future. continued to accelerate to just over 17% in the Insurance Group, and broke into the mid-teens at 13.5% in the Business & Government Group. With the bulk of our acquisition assimilation Assimilation The absorption of stock by the public from a new issue. Notes: Underwriters hope to sell all of a new issue to the public. See also: Issuer, Underwriting Assimilation and core business retooling efforts behind us, this quarter was about execution of key product launches and the addition of new customers, and we made significant progress on both fronts. In addition, our Year 2000 renovations were successfully completed on-time and on-budget, a great testament to our technology team." Chairman and Chief Executive Officer Derek Smith Derek Smith can refer to any of the following people
Business Unit Results Revenue from Insurance Services increased $10.1 million, or 17.1%, to $68.9 million in the fourth quarter of 1999 from $58.8 million in the fourth quarter of 1998. The results were driven by continued strong unit performance in personal lines products and laboratory services. Operating income in Insurance Services was $28.1 million for the quarter, up from $22.6 million in the fourth quarter of 1998. Operating profit margin Operating profit margin The ratio of operating profit to net sales. in Insurance Services for the quarter was 40.8% compared with 38.5% for the fourth quarter of 1998. Excluding acquisition amortization, operating profit margin for the fourth quarter of 1999 was 41.9%. Revenue from Business and Government Services increased $11.8 million, or 37.9%, to $43.0 million in the fourth quarter of 1999 from $31.2 million in the fourth quarter of 1998. Comparable internal revenue growth for Business and Government Services, excluding the effect of revenue from acquisitions made since the third quarter of 1998, was approximately 13.5% over prior year. Operating income in Business and Government Services was $3.8 million for the fourth quarter, up from $2.2 million in the fourth quarter of 1998. Operating profit margin in Business and Government Services for the fourth quarter was 8.9% compared with 7.1% for the fourth quarter of 1998. Excluding acquisition amortization, operating profit margin for the fourth quarter of 1999 was 16.6%. Year 2000 expenses in the quarter were $1.3 million as compared to $3.2 million in the fourth quarter of 1998. Net income for the fourth quarter of 1999 was $10.9 million and EPS was $0.36. Full Year Results For the year, revenues from continuing operations increased $79.8 million, or 22.8 %, from $350.0 million in 1998 to $429.8 million in 1999. Operating profit Operating profit (or loss) Revenue from a firm's regular activities less costs and expenses and before income deductions. operating profit See operating income. before unusual items increased $14.5 million, or 22.2%, from $65.2 million for 1998 to $79.7 million for 1999. Operating margins, before unusual items, increased from 16.0% to 18.5%. Net income for the year increased $4.0 million, or 11.2%, from $35.4 million for 1998 to $39.4 million for 1999. Diluted di·lute tr.v. di·lut·ed, di·lut·ing, di·lutes 1. To make thinner or less concentrated by adding a liquid such as water. 2. To lessen the force, strength, purity, or brilliance of, especially by admixture. EPS for 1999 was $1.30 compared with an EPS of $1.18 for 1998. ChoicePoint is the leading provider of decision-making intelligence to businesses, individuals and government agencies. Through the identification, retrieval, storage, analysis and delivery of data, the Company serves the information needs of the property & casualty and life & health insurance markets, and the business and government markets, including Fortune 1000 corporations, asset-based lenders, law firms This list of the world's largest law firms by revenue is taken from The Lawyer and The American Lawyer and is ordered by 2006 revenue:[1]
For more information about ChoicePoint visit the Company's web site at www.choicepointinc.com. The Company undertakes no obligation to publicly release any revisions to any forward-looking statement forward-looking statement A projected financial statement based on management expectations. A forward-looking statement involves risks with regard to the accuracy of assumptions underlying the projections. contained herein to reflect events or circumstances occurring after the date hereof here·of adv. Of this. hereof Adverb Formal or law of or concerning this Adv. 1. hereof - of or concerning this; "the twigs hereof are physic" or to reflect the occurrence of unanticipated events. The Company's actual results may differ materially from those projected in forward-looking statements made by, or on behalf of, the Company. ChoicePoint and SearchPointe are trademarks of ChoicePoint Inc.
ChoicePoint Inc.
Financial Highlights
(Unaudited)
----------------------------------------------------------------------
Three months ended Twelve months ended
(Dollars in thousands,
except per share data) 1999 1998 1999 1998
----------------------------------------------------------------------
Insurance Services $ 68,939 $ 58,854 $264,834 $246,463
Business and Government
Services revenue 42,969 31,163 164,958 103,488
Revenue from divested
and discontinued lines 59 13,319 351 56,524
-------- -------- -------- --------
Total operating 111,967 103,336 430,143 406,475
======== ======== ======== ========
Insurance Services
operating income 28,140 22,649 100,475 86,092
Business and Government
Services operating
income 3,839 2,224 13,670 5,486
Divested and discontinued
lines operating income (333) 661 (855) 1,199
Corporate (a) (9,694) (8,104) (33,619) (27,611)
-------- -------- -------- --------
Operating income
before unusual items 21,952 17,430 79,671 65,166
Unusual items -- 3,758 1,583 3,758
-------- -------- -------- --------
Operating income 21,952 13,672 78,088 61,408
Gain on sale of business -- 8,807 2,513 8,807
Interest expense 2,704 2,477 11,142 7,748
-------- -------- -------- --------
Income before
income taxes 19,248 20,002 69,459 62,467
Provision for
income taxes 8,334 8,661 30,070 27,048
-------- -------- -------- --------
Net income $10,914 $ 11,341 $39,389 $35,419
======== ======== ======== ========
Effective tax 43.3% 43.3% 43.3% 43.3%
Earnings per share
- basic $ .38 $ .39 $ 1.36 $ 1.22
======== ======== ======== ========
Weighted average
shares - basic 29,053 28,888 28,973 29,084
Earnings per
share - diluted (b) $ .36 $ .38 $ 1.30 $ 1.18
======== ======== ======== ========
Weighted average
shares - diluted (b) 30,482 29,936 30,191 30,012
EBITDA $31,057 $31,403 $118,514 $101,247
======== ======== ======== ========
Acquisition amortization
(pre-tax) (d) $4,025 $3,320 $15,448 $11,408
======== ======== ======== ========
Acquisition amortization
(after-tax) (d) $2,956 $2,498 $11,431 $8,792
======== ======== ======== ========
Diluted earnings per
share excluding
acquisition
amortization $ .46 $ .46 $ 1.68 $ 1.47
======== ======== ======== ========
(a) Corporate expenses represent costs of support functions, incentives and profit sharing profit sharing, arrangement by which employees receive, in addition to their wages, a share of the net profits of a business. The purpose is to give them an incentive to increase their output through enhanced morale, less wasteful use of materials, better care of that benefit both segments. (b) Earnings per share and weighted average shares reflect the 2-for-1 stock split in the form of a stock dividend paid on November 24, 1999. (c) Earnings before interest, taxes, depreciation and amortization ("EBITDA") is presented not as a substitute for income from operations, net income or cash flows from operating activities. The Company has included EBITDA data (which are not a measure of financial performance under generally accepted accounting principles The standard accounting rules, regulations, and procedures used by companies in maintaining their financial records. Generally accepted accounting principles (GAAP) provide companies and accountants with a consistent set of guidelines that cover both broad accounting ) because such data are used by certain investors to analyze and compare companies on the basis of operating performance, leverage and liquidity, and to determine a company's ability to service debt. (d) Acquisition amortization includes goodwill and other intangible amortization related to acquisitions. |
|
||||||||||||||||
Printer friendly
Cite/link
Email
Feedback
Reader Opinion