American Home Shield 2004 Annual Report Download - page 61

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2004 annual report ServiceMaster 59
Quarterly Operating Results (Unaudited) – continued
(In thousands, except per share data) 2004 Chg 2003 Chg 2002
Discontinued Operations:
Income (Loss) from Discontinued Operations:
First Quarter $ (262) (56%) $ (168) N/M $ 1,264
Second Quarter (292) 63 (779) N/M 878
Third Quarter (619) 57 (1,440) N/M 2,068
Fourth Quarter (2) 8,343 N/M (325) N/M (4,519)
$7,170 N/M $ (2,712) N/M $ (309)
Diluted Earnings (Loss) Per Share:
First Quarter $– –% $ – –% $ –
Second Quarter –––––
Third Quarter –– – (100) 0.01
Fourth Quarter (2) 0.03 N/M – 100 (0.01)
$ 0.02 N/M $ (0.01) (100%) $ –
N/M = Not meaningful
(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 Statements.
(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.
Quarterly Cash Dividends and Price Per Share Data
2004 % Change 2003 % Change 2002
Cash Dividends Per Share:
First Quarter $ 0.105 0% $0.105 5% $ 0.10
Second Quarter 0.105 0 0.105 5 0.10
Third Quarter 0.11 5 0.105 0 0.105
Fourth Quarter 0.11 5 0.105 0 0.105
$ 0.43 2% $ 0.42 2% $ 0.41
The following table sets forth the quarterly prices of ServiceMaster’s common stock, as reported on the New York Stock Exchange
Composite Transactions:
2004 2003 2002
Price Per Share: High Low High Low High Low
First Quarter $ 12.05 $ 10.65 $ 11.41 $ 8.95 $ 14.50 $ 13.16
Second Quarter 12.50 11.35 10.95 8.97 15.50 12.70
Third Quarter 13.25 11.12 10.73 9.35 13.63 10.30
Fourth Quarter 13.87 12.30 12.10 10.20 12.15 8.89