ChoicePoint Releases Second Quarter Results.ALPHARETTA, Ga.--(BUSINESS WIRE)--July 20, 1999-- 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 results for the second quarter of 1999, showing strong revenue 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. and continued 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. expansion. Revenue, excluding the effect of the sale of certain field businesses in December 1998 and other 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, increased 17.1% to $107.9 million from $92.2 million in the second 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. increased 16.1% to $19.1 million while operating margins Operating Margin A ratio used to measure a company's pricing strategy and operating efficiency. Calculated by: increased to 17.7% in the second quarter of 1999, from 15.4% in the second quarter of 1998. EBITDA (Earnings Before Interest, Taxes, Depreciation and Amortization) A metric used to show a company's profitability, but not its cash flow. EBITDA became popular in the 1980s to show the potential profitability of leveraged buyouts, but has become increased 20.9% to $28.7 million in the quarter, and Economic Value Added Economic value added (EVA) 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 $1.3 million. 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 $0.61 as compared to $0.55 in the second quarter of 1998. "This is an exciting time for ChoicePoint. I am proud of all that we have accomplished in the two short years since our spinoff Spinoff A new, independent company created through selling or distributing new shares for an existing part of another company. Notes: Spinoffs may be done through a rights offering. , and the momentum we have created for the future," commented Chairman and Chief Executive Officer Derek Smith Derek Smith can refer to any of the following people
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. added, "Our focus in the second quarter was to continue assimilating as·sim·i·late v. as·sim·i·lat·ed, as·sim·i·lat·ing, as·sim·i·lates v.tr. 1. Physiology a. To consume and incorporate (nutrients) into the body after digestion. b. acquisitions, extracting our divested businesses and executing our new field business model while maintaining strength in our core businesses. I'm pleased with the quarter's results on these initiatives, and in particular with the overall levels of profitability and improved revenue growth rates in our business and government services." Revenue from Insurance Services, excluding the effects of the sale of certain field businesses in December 1998 and an $8.2 million progress payment on a significant systems development project in the second quarter of 1998, increased $6.3 million, or 10.8%, to $65.3 million in the second quarter of 1999 from $59.0 million in the second quarter of 1998. Operating income in Insurance Services was $24.8 million for the second quarter, up from $21.5 million in the second quarter of 1998. Operating profit for the quarter was 38.0%, up from 32.1% in the second quarter 1998. Excluding acquisition amortization, operating margin for the second quarter of 1999 was 39.1% in Insurance Services. Revenue from Business and Government Services increased $17.6 million, or 70.3% excluding the effect of the sale of its payroll verification business and other discontinued product lines, to $42.6 million in the second quarter of 1999, from $25.0 million in the second quarter of 1998. Comparable internal revenue growth for Business and Government services, excluding the effect of revenue from acquisitions made since the first quarter of 1998, was 6.9% over prior year. Operating income in Business and Government services was $4.1 million in the quarter, up from $2.2 million in the second quarter of 1998. Operating profit for the quarter increased to 9.6% in the second quarter of 1999, from 8.9% in the second quarter of 1998. Excluding acquisition amortization, operating margin in Business and Government Services for the second quarter of 1999 was 16.7%. Year 2000 expenses including in operating results for the quarter were $2.2 million as compared to $766,000 in the second quarter of 1998. Net income for the quarter was $9.2 million, an increase of 10.7% over the second quarter of 1998. EPS for the second quarter was $0.61, up 10.9% from $0.55 in the second quarter of 1998. EPS excluding acquisition amortization was $0.80, an increase of 15.9 % from $0.69 in the second quarter of 1998. ChoicePoint is a leading technology-driven information company that provides individuals, businesses and government agencies with intelligence that helps them make smarter decisions. Through the identification, retrieval, storage, analysis and delivery of data, the company serves the information needs of the property and casualty insurance market, the life and health market, and the business and government markets, including Fortune 1000 corporations, asset-based lenders and professional service providers, and local, state and federal governments. For more information about ChoicePoint financial results, products and services and current events, 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 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. -0-
ChoicePoint Inc.
Financial Highlights
(Unaudited)
Three mos. ended Six mos. ended
June 30, June 30,
(Dollars in thousands, except
per share data) 1999 1998 1999 1998
Insurance Services revenue $65,296 $67,157 $128,614 $125,431
Business and Government
Services revenue 42,602 25,009 78,815 46,687
Revenue from divested and
discontinued lines 81 14,536 234 29,134
------- -------- ------- -------
Total operating revenue 107,979 106,702 207,663 201,252
------- -------- ------- -------
Insurance Services operating
income 24,797 21,532 46,349 41,902
Business and Government
Services operating income 4,097 2,236 5,581 2,226
Divested and discontinued lines
operating income (66) 556 (32) 174
Corporate (a) (9,692) (7,840) (15,342) (12,808)
------- -------- ------- -------
Operating income before unusual
items 19,136 16,484 36,556 31,494
Unusual items -- -- 1,583 --
------- -------- ------- -------
Operating income 19,136 16,484 34,973 31,494
Gain on sale of business units -- -- 2,513 --
Interest expense, net 2,913 1,825 5,469 3,470
------- -------- ------- -------
Income before income taxes 16,223 14,659 32,017 28,024
Provision for income taxes 7,019 6,347 13,858 12,134
------- -------- ------- -------
Net income $ 9,204 $ 8,312 $18,159 $15,890
======= ======== ======= =======
Effective tax rates 43.3% 43.3% 43.3% 43.3%
Earnings per share - basic $ .64 $ .57 $ 1.26 $ 1.09
======= ======== ======= =======
Weighted average shares - basic 14,476 14,611 14,457 14,626
Earnings per share - diluted $ .61 $ .55 $ 1.21 $ 1.05
======= ======== ======= =======
Weighted average shares -
diluted 15,059 15,162 14,975 15,129
EBITDA (b) $28,734 $ 23,771 $56,868 $45,775
------- -------- ------- -------
Acquisition amortization -
pre-tax (c) $ 3,798 $ 2,721 $ 7,560 $ 5,232
------- ------- ------- -------
Acquisition amortization -
after-tax (c) $ 2,813 $ 2,149 $ 5,604 $ 4,094
------- ------- ------- -------
Diluted earnings per share
excluding acquisition
amortization $ .80 $ .69 $ 1.59 $ 1.32
======= ======= ======= =======
(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 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.
("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) 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. (c) Acquisition amortization includes goodwill and other intangible amortization related to acquisitions. |
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