American Home Shield 2007 Annual Report Download - page 81

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Quarterly Operating Results (Unaudited)
Quarterly operating results and related growth for the last three years in revenue, gross profit, income from continuing operations,
income from discontinued operations and earnings per share are shown in the table below. As discussed in the "Interim Reporting"
section in the Significant Accounting Policies, for interim accounting purposes, TruGreen LawnCare and other business segments
of the Company incur pre-season advertising costs. In addition, TruGreen LawnCare incurs costs related to annual repairs and
maintenance procedures that are performed in the first quarter. These costs are deferred and recognized as expense in proportion to
revenue over the balance of the year. Full year results are not affected.
(In thousands, except per share data) 2006 Chg 2005 Chg 2004
Continuing Operations:
Operating Revenue:
First Quarter $ 662,387 6% $ 623,760 3% $ 602,907
Second Quarter 1,024,624 6 970,627 7 909,019
Third Quarter 971,436 5 925,492 6 872,770
Fourth Quarter 770,698 7 719,599 5 683,372
$ 3,429,145 6% $ 3,239,478 6% $ 3,068,068
Gross Profit:
First Quarter $ 227,717 8% $ 209,889 6% $ 197,547
Second Quarter 412,762 3 400,303 9 367,430
Third Quarter 372,334 3 362,573 6 342,071
Fourth Quarter 271,209 6 254,735 5 241,800
$ 1,284,022 5% $ 1,227,500 7% $ 1,148,848
Income from Continuing Operations: (1)
First Quarter $ 12,211 11% $ 11,036 (14%) $ 12,761
Second Quarter 74,746 (1) 75,391 9 69,267
Third Quarter 61,498 (12) 70,172 9 64,267
Fourth Quarter (2), (3) 38,113 59 23,962 N/M 170,328
$ 186,568 3% $ 180,561 N/M $ 316,623
Basic Earnings Per Share:
First Quarter $ 0.04 —% $ 0.04 —% $ 0.04
Second Quarter 0.26 — 0.26 8 0.24
Third Quarter 0.21 (13) 0.24 9 0.22
Fourth Quarter 0.13 63 0.08 N/M 0.59
$ 0.64 3% $ 0.62 N/M $ 1.09
Diluted Earnings Per Share: (1)
First Quarter $ 0.04 —% $ 0.04 —-% $ 0.04
Second Quarter 0.25 — 0.25 9 0.23
Third Quarter 0.21 (9) 0.23 5 0.22
Fourth Quarter (2), (3) 0.13 63 0.08 N/M 0.56
$ 0.64 5% $ 0.61 N/M $ 1.06
Discontinued Operations:
Income (Loss) from Discontinued Operations:
First Quarter ($ 26,524) N/M ($ 464) 70% ($ 1,562)
Second Quarter 2,400 (46%) 4,410 291 1,129
Third Quarter 6,472 (43) 11,415 230 3,457
Fourth Quarter (2), (3) 783 (74) 3,003 N/M 11,580
($ 16,869) (192%) $ 18,364 N/M $ 14,604
Diluted Earnings (Loss) Per Share:
First Quarter ($ 0.09) N/M $ — 100% ($ 0.01)
Second Quarter 0.01 —% 0.01 N/M —
Third Quarter 0.02 (50) 0.04 300 0.01
Fourth Quarter (3) — (100) 0.01 N/M 0.04
($ 0.06) (200%) $ 0.06 N/M $ 0.05