American Home Shield 2004 Annual Report Download - page 37

2004 annual report ServiceMaster 35
(In thousands, except per share data) 2004 2003 2002 2001 2000
Operating Results:
Operating revenue $ 3,758,568 $ 3,568,586 $ 3,500,721 $ 3,476,811 $ 3,347,114
Operating income (loss) (1) 336,556 (166,243) 335,393 (30,400) 313,762
Percentage of operating revenue 9.0% (4.7%) 9.6% (0.9%) 9.4%
Non-operating expense 53,464 58,394 93,152 127,527 103,733
Provision (benefit) for income taxes (2) (40,965) (2,662) 84,938 14,292 90,008
Income (loss) from continuing operations(2) 324,057 (221,975) 157,303 (172,219) 120,021
Income (loss) from discontinued operations, net of
income taxes (2) 7, 17 0 (2,712) (309) 288,603 44,821
Cumulative effect of accounting change,
net of income taxes ————(11,161)
Net income (loss) $ 331,227 $ (224,687) $ 156,994 $ 116,384 $ 153,681
Earnings (loss) per share:
Basic $ 1.14 $ (0.76) $ 0.52 $ 0.39 $ 0.51
Diluted:(1, 2)
Income (loss) from continuing operations $ 1.08 $ (0.75) $ 0.51 $ (0.58) $ 0.39
Income (loss) from discontinued operations 0.02 (0.01) — 0.97 0.15
Cumulative effect of accounting change ————(0.04)
Diluted earnings (loss) per share $ 1.11 $ (0.76) $ 0.51 $ 0.39 $ 0.50
Shares used to compute basic earnings per share 290,514 295,610 300,383 298,659 302,487
Shares used to compute diluted earnings per share 303,568 295,610 305,912 298,659 305,518
Shares outstanding, net of treasury shares 290,524 292,868 298,253 300,531 298,474
Cash dividends per share $ 0.43 $ 0.42 $ 0.41 $ 0.40 $ 0.38
Share price range:
High price $ 13.87 $ 12.10 $ 15.50 $ 14.20 $ 14.94
Low price $ 10.65 $ 8.95 $ 8.89 $ 9.84 $ 8.25
Financial Position:
Current assets $ 978,752 $ 890,774 $ 925,496 $ 1,126,266 $ 701,898
Current liabilities 1,027,927 818,240 839,064 805,298 675,902
Working capital (49,175) 72,534 86,432 320,968 25,996
Current ratio 1.0 - 1 1.1 - 1 1.1 - 1 1.4 - 1 1.0 - 1
Total assets (1) $ 3,140,202 $ 2,956,426 $ 3,414,938 $ 3,621,245 $ 3,939,710
Total liabilities 2,048,667 2,039,600 2,095,929 2,311,381 2,753,226
Total debt outstanding 805,088 819,271 835,475 1,155,193 1,833,556
Minority interest 100,000 100,309 100,309 102,677 5,933
Shareholders’ equity (1, 2) 991,535 816,517 1,218,700 1,207,187 1,180,551
(1) In accordance with SFAS 142, 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. See the “Goodwill and Intangible Assets” note in the Notes to Consolidated Financial State-
ments. In the fourth quarter of 2001, the Company recorded a pre-tax charge of $345 million ($279 million, after-tax) or $.94 per diluted share related primarily
to goodwill and asset impairments as well as other items.
(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 agreement, 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). See the “Income Taxes” note in the Notes to the Consolidated
Financial Statements.
five-year financial summary