EX-99.1 2 dex991.htm RETURN ON INVESTED CAPITAL CALCULATION AND RECONCILIATION Return on Invested Capital calculation and reconciliation
ROIC Calculation
Exhibit 99.1
Company's Return on Invested Capital Calculation
(For the Three Months ending September 30, 2006)
Adjustments
($ 000)
As Reported
Depreciation/
Company's
Amortization
ROIC
Operating Income from
Adjusted Net
Continued Operations
9,920
$         
2,078
$                      
11,998
$     
Operating Income
47,992
$     
Annualized
Company
Assets/Liabilities
Cash Limit (1)
Held for Sale
Cash & Cash
Equivalents
157,283
$     
(82,283)
$          
75,000
$     
Non-Cash Assets
248,218
(3,832)
244,386
Total Assets
405,501
319,386
Total Current Liabilities
98,771
98,771
Net Invested Capital
306,730
$     
220,615
$   
Adjusted Net
Invested Capital
21.8%
ROIC
(1) Only the first $75 million of cash is used for the ROIC calculation
We define Return On Invested Capital (ROIC) as Operating Income divided by adjusted net Invested Capital. Total Assets are adjusted for
discontinued operations' assets held for sale. Net Invested Capital is defined as Total Assets less Current Liabilities. We believe ROIC is a useful
measure in providing investors with information regarding our performance. ROIC is a widely accepted measure of earnings efficiency in relation to
capital employed. We believe that increasing the return on capital employed, as measured by ROIC, is an effective method to sustain and increase
shareholder value.