American Home Shield 2002 Annual Report Download - page 60

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As Previously As Previously
Reported As Restated % Reported
(In thousands, except per share data) 2002 2002 Chg 2001(1)
Continuing Operations:
Operating Revenue:
First Quarter $ 733,385 $ 734,263 2% $ 719,591
Second Quarter 1,032,807 1,034,937 1 1,015,687
Third Quarter 1,013,484 1,010,661 3 981,552
Fourth Quarter N/A 809,228 (3) 822,357
$3,589,089 1% $3,539,187
Gross Profit:
First Quarter $ 203,135 $ 188,202 7% $ 193,924
Second Quarter 346,050 359,769 4 332,577
Third Quarter 323,456 335,252 4 306,063
Fourth Quarter N/A 224,640 (6) 217,006
$1,107,863 2% $ 1,049,570
Income from Continuing Operations:
First Quarter $ 23,785 $ 11,858 N/A $ 17,006
Second Quarter 60,750 71,437 44 45,019
Third Quarter 57,810 66,988 49 35,730
Fourth Quarter N/A 19,815 N/A (265,068)
$ 170,098 N/A $ (167,313)
Basic Earnings Per Share:
First Quarter $ 0.08 $ 0.04 N/A $ 0.06
Second Quarter 0.20 0.24 41 0.15
Third Quarter 0.19 0.22 47 0.12
Fourth Quarter N/A 0.07 N/A (0.89)
$ 0.57 N/A $ (0.56)
Diluted Earnings Per Share:
First Quarter $ 0.08 $ 0.04 N/A $ 0.06
Second Quarter 0.20 0.23 44 0.15
Third Quarter 0.19 0.22 47 0.12
Fourth Quarter N/A 0.07 N/A (0.84)
$ 0.56 N/A $ (0.52)
Discontinued Operations:
Income from Discontinued Operations:
First Quarter $ (43) $ (217) $ 6,218
Second Quarter 200 295 5,694
Third Quarter 527 1,095 10,393
Fourth Quarter N/A (5,048) 303,463
$ (3,875) $ 325,768
Diluted Earnings Per Share:
First Quarter $-$- $0.02
Second Quarter -- 0.02
Third Quarter -- 0.03
Fourth Quarter N/A (0.02) 0.97
$ (0.01) $1.05
56 ServiceMaster
Notes to Consolidated Financial Statements
(1)During the third quarter of 2002, the Company sold its Terminix operations in the United Kingdom. The financial results from these
operations have been reclassified from “Continuing Operations” to “Discontinued Operations” for all periods presented.
Quarterly Operating Results (Unaudited)
As discussed in the Notes to the Consolidated Financial
Statements, the Company has restated its consolidated
financial statements for the years ended December 31,
2001 and 2000 as well as the previously reported 2002
quarterly results. The impact of the restatement on
operating revenue, gross profit, income from continuing
operations and earnings per share is presented below.
For interim accounting purposes, TruGreen ChemLawn
incurs pre-season advertising costs and annual repair
and maintenance procedures that are performed in the
first quarter. These costs are deferred and recognized as
expense in proportion to the related revenues. Full year
results are not affected. The quarterly information for
2002, 2001 and 2000 has been restated to treat certain
costs that were previously deferred as period costs.
There was no impact on full-year results for 2002, 2001
and 2000 as a result of this change.
The table below excludes extraordinary items and the
cumulative effect of accounting changes. These items
are as follows. In the second quarter of 2002, the
Company recorded an extraordinary loss from the early