American Home Shield 2004 Annual Report Download - page 20

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(In thousands, except per share data)
As of and for the years ended December 31 2004 2003 Change
Operating Results
Operating revenue $ 3,758,568 $ 3,568,586 5%
Operating income (loss) (1) 336,556 (166,243)
Income (loss) from continuing operations (1, 2) 324,057 (221,975)
Income (loss) from discontinued operations (2) 7, 170 (2,712)
Net income (loss) (1, 2) $ 331,227 $ (224,687)
Diluted earnings (loss) per share:
Income (loss) from continuing operations (1, 2) $ 1.08 $ (0.75)
Income (loss) from discontinued operations (2) 0.02 (0.01)
Diluted earnings (loss) per share $ 1.11 $ (0.76)
Cash dividends per share $ 0.43 $ 0.42 2%
Financial Position
Total assets $ 3,140,202 $ 2,956,426
Total debt 805,088 819,271
Shareholders’ equity 991,535 816,517
Cash Flows
Cash from operating activities $ 375,885 $ 283,538 33%
Share Price Range
(Traded on the New York Stock Exchange under the symbol SVM)
High price for the year $ 13.87 $ 12.10
Low price for the year 10.65 8.95
Closing price as of December 31, 13.79 11.65
(1) The Company’s goodwill and intangible assets that are not amortized are subject to at least an annual assessment for impairment
by applying a fair-value based test. During the third quarter of 2003, the Company recorded a non-cash impairment charge
associated with goodwill and intangible assets at its American Residential Services, American Mechanical Services and
TruGreen LandCare business units of $481 million pre-tax ($383 million after-tax). The impact on diluted earnings per
share of this charge was $1.30.
(2) In January 2005, the Company announced that it had reached a comprehensive agreement with the Internal Revenue
Service regarding its examination of the Company’s federal income taxes through the year 2002. As a result of this agree-
ment, the Company recorded a non-cash reduction in its fourth quarter and full year 2004 tax provision, thereby increasing
net income by approximately $159 million. Approximately $150 million related to continuing operations ($.49 per diluted
share) and $9 million related to discontinued operations ($.03 per diluted share).
financial highlights