EX-99.1 23 dex991.htm NON-GAAP CONSOLIDATED STATEMENT OF INCOME NON-GAAP Consolidated Statement of Income

Exhibit 99.1

 

The following Non-GAAP Consolidated Statement of Income for the Year Ended December 31, 2001 is presented for informational purposes.

 

CERTEGY INC.

NON-GAAP CONSOLIDATED STATEMENT OF INCOME

FOR THE YEAR ENDED DECEMBER 31, 2001

UNAUDITED

(IN THOUSANDS, EXCEPT PER SHARE AMOUNTS)

 

           Non-GAAP Adjustments

       
     GAAP

    Spin-off(1)

    SFAS 142(2)

    Non-GAAP

 

Revenues

   $ 935,971     $ —       $ —       $ 935,971  
    


 


 


 


Operating expenses:

                                

Costs of services

     686,588       2,350       (8,560 )     680,378  

Selling, general and administrative expenses

     97,964       900       —         98,864  
    


 


 


 


       784,552       3,250       (8,560 )     779,242  
    


 


 


 


Operating income

     151,419       (3,250 )     8,560       156,729  

Other income, net

     78       —         —         78  

Interest expense

     (7,200 )     (8,413 )     —         (15,613 )
    


 


 


 


Income before income taxes and minority interests

     144,297       (11,663 )     8,560       141,194  

(Provision) benefit for income taxes

     (56,276 )     4,549       (1,309 )     (53,036 )

Minority interests in earnings, net of tax

     (945 )     —         —         (945 )
    


 


 


 


Net income

   $ 87,076     $ (7,114 )   $ 7,251     $ 87,213  
    


 


 


 


Basic:

                                

Earnings per share

   $ 1.27                     $ 1.28  
    


                 


Average shares outstanding

     68,317                       68,317  
    


                 


Diluted:

                                

Earnings per share

   $ 1.26                     $ 1.26  
    


                 


Average shares outstanding

     69,063                       69,063  
    


                 


 

A reconciliation of GAAP operating income of the Company’s reportable segments to non-GAAP operating income for the year ended December 31, 2001 is as follows:

 

           Non-GAAP Adjustments

      
     GAAP

    Spin-off(1)

    SFAS 142(2)

   Non-GAAP

 

Operating income:

                               

Card Services

   $ 119,767     $ —       $ 7,637    $ 127,404  

Check Services

     43,502       —         923      44,425  
    


 


 

  


       163,269       —         8,560      171,829  

General corporate expense

     (11,850 )     (3,250 )     —        (15,100 )
    


 


 

  


     $ 151,419     $ (3,250 )   $ 8,560    $ 156,729  
    


 


 

  



(1) Spin-off adjustments include: a) additional operating expenses of $3.2 million, which specifically relate to incremental pension expense, insurance costs, corporate headquarters rent, and stand-alone public company costs for audit, director, and stock exchange fees; b) interest on the $275 million of debt used to fund a cash payment to Equifax in conjunction with the spin-off, at an annual rate of LIBOR plus 100 basis points (5.76 percent for the six months ended June 30, 2001), plus amortization of financing costs over the three-year term of the debt; and c) the income tax benefit resulting from the non-GAAP adjustments using the Company’s effective tax rate for the period.
(2) Non-GAAP adjustment to exclude goodwill amortization expense in accordance with SFAS No. 142, “Goodwill and Other Intangible Assets,” as if the standard had been effective on January 1, 2001.