ChoicePoint Releases Record Second Quarter Results.Business Editors ALPHARETTA, Ga.--(BUSINESS WIRE)--July 26, 2000 ChoicePoint ChoicePoint (NYSE: CPS) is a data aggregation company based in Alpharetta, near Atlanta, Georgia, USA, that acts as a private intelligence service to government and industry. 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 record revenue and earnings for the second quarter of 2000. 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 , including the results of the recent merger with DBT DBT Department of Biotechnology (India) DBT Dibenzothiophene DBT Drive-By Truckers (band) DBT Design Basis Threat DBT Deutscher Bundestag (German Parliament) Online, Inc. (DBT), increased 18.8 % to a record $148.5 million from $125.0 million in the second quarter of 1999. 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 merger costs and unusual items increased 28.1% to $28.2 million while operating margins Operating Margin A ratio used to measure a company's pricing strategy and operating efficiency. Calculated by: before merger costs and unusual items increased to a record 19.0% in the quarter from 17.3% in the second quarter of 1999. 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.
On May 16, 2000, ChoicePoint completed a merger with DBT. The merger has been accounted for as a pooling of interests Pooling of Interests An accounting method, used in mergers and acquisitions, where the balance sheet items of the two companies are simply added together. Notes: The opposite of pooling of interests is the purchase acquisition method. transaction and accordingly all current and prior period financial results include the combined results of ChoicePoint and DBT. "I am extremely proud of our results this quarter," commented Chairman and CEO (1) (Chief Executive Officer) The highest individual in command of an organization. Typically the president of the company, the CEO reports to the Chairman of the Board. Derek V. Smith Derek V. Smith has been the CEO of ChoicePoint since 1997. Previously, Smith was an executive for Equifax. He has a degree from Georgia Tech. Quotes
2. (tool) SDS - Schema Definition Set. and NSA NSA abbr. National Security Agency Noun 1. NSA - the United States cryptologic organization that coordinates and directs highly specialized activities to protect United States information systems and to produce foreign , added several key new associates to our leadership team, and launched our new Appraise appraise v. to professionally evaluate the value of property including real estate, jewelry, antique furniture, securities, or in certain cases the loss of value (or cost of replacement) due to damage. (TM) product, a patented home chronic disease management program." Chief Financial Officer Michael Wood Michael Wood refers to:
In places:
Revenue from Insurance Services increased $9.7 million, or 15.4%, to $72.9 million in the second quarter of 2000 from $63.2 million in the second quarter of 1999. The results were driven by continued strong unit performance in personal lines and the acquisition of Statewide Data Services (SDS) in January January: see month. 2000, offset partially by a decline in laboratory testing volume. Operating income in Insurance Services was $27.9 million for the second quarter, up from $23.9 million in the second quarter of 1999. Operating profit margin Operating profit margin The ratio of operating profit to net sales. in Insurance Services for the second quarter was 38.2% compared with 37.8% for the second quarter of 1999. Excluding acquisition amortization, operating profit margin for the second quarter of 2000 was 39.8%. Revenue from Business & Government Services increased $13.6 million, or 22.5%, to $73.9 million in the second quarter of 2000 from $60.3 million in the second quarter of 1999. The results were driven by continued strong unit performance in workplace solutions and direct marketing and the acquisition of National Safety Alliance (NSA) in February of 2000. Operating income in Business & Government Services was $11.0 million for the second quarter, up from $6.1 million in the second quarter of 1999. Operating profit margin in Business & Government Services for the second quarter was a record 14.8% compared with 10.2% for the second quarter of 1999, primarily as a result of strong revenue growth in workplace solutions and cost synergies Cost Synergy In the context of mergers, cost synergy is the savings in operating costs expected after two companies, who compliment each other's strengths, join. Notes: The savings in operating costs usually come in the form of laying off employees. realized in public records. Excluding acquisition amortization, operating profit margin for the second quarter of 2000 was 19.9%. Net income and EPS for the second quarter of 2000, excluding the effect of merger costs and unusual items, were $14.8 million and $0.36, respectively, and $11.4 million and $.28 for the second quarter of 1999, respectively. The effective tax rate decreased from 41.9% in the second quarter of 1999 to 40.7% in the second quarter of 2000 as a result of state income tax initiatives. Including $28.9 million ($20.6 million after-tax) of merger costs and unusual items, net loss for the second quarter of 2000 was $5.8 million or $.15 per share. The $28.9 million charge comprised approximately $13 million in out-of-pocket merger costs, which under the pooling method of accounting are required to be expensed at the time of the merger, and $15.9 million in unusual items including asset writedowns, severance The act of dividing, or the state of being divided. The term severance has unique meanings in different branches of the law. Courts use the term in both civil and criminal litigation in two ways: first, when dividing a lawsuit into two or more parts, and second, when costs and duplicate DUPLICATE. The double of anything. 2. It is usually applied to agreements, letters, receipts, and the like, when two originals are made of either of them. Each copy has the same effect. data expenses primarily associated with the merger with DBT. ChoicePoint is the leading provider of decision-making decision-making, n the process of coming to a conclusion or making a judgment. decision-making, evidence-based, n a type of informal decision-making that combines clinical expertise, patient concerns, and evidence gathered from 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 and health insurance markets, and 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.choicepoint.net. 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 CIRCUMSTANCES, evidence. The particulars which accompany a fact. 2. The facts proved are either possible or impossible, ordinary and probable, or extraordinary and improbable, recent or ancient; they may have happened near us, or afar off; they are public or 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 Appraise are trademarks of ChoicePoint Inc.
ChoicePoint Inc.
Financial Highlights (a)
(Unaudited)
Three Months Ended June 30
------------------------
(Dollars in thousands, except per share data) 2000 1999
Financial information excluding merger costs,
unusual items and gain on sale:
---------
Insurance Services revenue $ 72,904 $ 63,165
Business & Government Services revenue. 73,934 60,346
Royalty revenue 1,648 1,496
Revenue from divested & discontinued lines (b) - 2,212
-------- --------
Total revenue $148,486 $127,219
======== ========
Insurance Services operating income $ 27,872 $ 23,868
Business & Government Services operating
income. 10,965 6,148
Royalty operating income 1,017 818
Divested and discontinued lines operating
income (b) - 863
Corporate (c) (11,664) (9,692)
-------- --------
Operating income before merger costs and
unusual items $ 28,190 $ 22,005
Interest expense, net 3,228 2,453
-------- --------
Income before income taxes 24,962 19,552
Provision for income taxes. 10,160 8,184
-------- --------
Net income. $ 14,802 $ 11,368
======== ========
Effective tax rate. 40.7% 41.9%
==== ====
Earnings per share - diluted (d) $ 0.36 $ 0.28
======== ========
Weighted average shares - diluted (d) 41,675 40,772
======== ========
EBITDA (e). $ 41,121 $ 33,933
======== ========
Acquisition amortization (pre-tax) (f). $ 4,939 $ 4,025
======== ========
Acquisition amortization (after-tax) (f) $ 3,566 $ 3,031
======== ========
Financial information including merger
costs, unusual items and gain on sale:
Total revenue $148,486 $127,219
======== ========
Operating income before merger costs and
unusual items 28,190 22,005
Merger costs and unusual items 28,949 817
-------- --------
Operating (loss) income. (759) 21,188
Gain on sale. - -
Interest expense, net 3,228 2,453
-------- --------
Pretax (loss) income. (3,987) 18,735
Provision for income taxes. 1,791 7,876
-------- --------
Net (loss) income $ (5,778) $ 10,859
======== ========
Earnings per share (d) (g) $ (0.15) $ 0.27
======== ========
Six Months Ended June 30
------------------------
(Dollars in thousands, except per share data) 2000 1999
---- ----
Financial information excluding merger costs,
unusual items and gain on sale:
---------
Insurance Services revenue $148,621 $123,848
Business & Government Services revenue. 143,394 112,788
Royalty revenue 3,191 3,148
Revenue from divested & discontinued lines (b) - 5,001
-------- --------
Total revenue $295,206 $244,785
========= ========
Insurance Services operating income $ 54,814 $ 44,195
Business & Government Services operating
income. 15,891 9,191
Royalty operating income 1,902 1,771
Divested and discontinued lines operating
income (b) - 2,122
Corporate (c) (20,117) (15,342)
-------- --------
Operating income before merger costs and
unusual items $ 52,490 $ 41,937
Interest expense, net 6,205 4,566
-------- --------
Income before income taxes 46,285 37,371
Provision for income taxes. 18,882 15,625
-------- --------
Net income. $ 27,403 $ 21,746
======== ========
Effective tax rate. 40.8% 41.8%
======== ========
Earnings per share - diluted (d) $ 0.66 $ 0.54
======== ========
Weighted average shares - diluted (d) 41,543 40,435
======== ========
EBITDA (e). $ 79,269 $ 65,780
======== ========
Acquisition amortization (pre-tax) (f). $ 10,000 $ 8,002
======== ========
Acquisition amortization (after-tax) (f) $ 7,288 $ 6,034
======== ========
Financial information including merger
costs, unusual items and gain on sale:
Total revenue $295,206 $244,785
======== ========
Operating income before merger costs and
unusual items 52,490 41,937
Merger costs and unusual items 28,949 2,400
-------- --------
Operating (loss) income. 23,541 39,537
Gain on sale. - 2,513
Interest expense, net 6,205 4,566
-------- --------
Pretax (loss) income. 17,336 37,484
Provision for income taxes. 10,513 15,720
-------- --------
Net (loss) income $ 6,823 $ 21,764
======== ========
Earnings per share (d) (g) $ 0.16 $ 0.54
(a) Certain prior period amounts have been restated to include DBT's results. (b) Revenue and operating income from divested and discontinued dis·con·tin·ue v. dis·con·tin·ued, dis·con·tin·u·ing, dis·con·tin·ues v.tr. 1. To stop doing or providing (something); end or abandon: lines in 1999 consists primarily of the operating results of ChoicePoint Limited. ChoicePoint Limited, the Company's United Kingdom-based insurance services division, was sold in January 2000 with no material gain on the sale of the business. In prior years, ChoicePoint Limited's operating results were included in the Insurance Services group. (c) 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. (d) Earnings per share and weighted average shares reflect the 2-for-1 stock split paid on November 24, 1999 and the effect of exchanging each share of DBT for .525 shares of ChoicePoint common stock. (e) 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. (f) Acquisition amortization includes goodwill and other intangible amortization related to acquisitions. (g) The 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. share base for the quarter ended June 30, 2000 excludes incremental Additional or increased growth, bulk, quantity, number, or value; enlarged. Incremental cost is additional or increased cost of an item or service apart from its actual cost. shares of 1.9 million related to employee stock options due to their antidilutive effect Antidilutive effect Result of a transaction that increases earnings per common share (e.g., by decreasing the number of shares outstanding). as a result of the Company's reported net loss. |
|
||||||||||||||||
Printer friendly
Cite/link
Email
Feedback
Reader Opinion