Asbury Automotive Group Reports Fourth Quarter and Full-Year 2005 Financial Results
Full-Year 2005 Diluted EPS Increases 22%; 13% from Continuing Operations
Achieves Industry-Leading Same-Store Revenue and Gross Profit Growth for the Year
NEW YORK, Feb. 24 -- Asbury Automotive Group, Inc. , one of the largest automotive retail and service companies in the U.S., today reported financial results for the fourth quarter and year ended December 31, 2005.
Income from continuing operations for the fourth quarter rose 3 percent to $14.4 million, or $0.44 per diluted share, from $14.0 million, or $0.43 per diluted share, in the corresponding period last year. Results for the fourth quarter of 2005 include an additional one-time benefit related to the Company's regional reorganization, which increased after-tax income by $2.1 million, or $0.07 per diluted share. Excluding this item, fourth quarter earnings per share from continuing operations was $0.37 versus the analysts' consensus estimate of $0.32. Including discontinued operations (which contributed after-tax income of $6.1 million, or $0.18 per diluted share, as a result of gains on the sale of certain of our dealerships in Oregon), reported net income for the fourth quarter of 2005 was $20.5 million, or $0.62 per diluted share, compared with $12.8 million, or $0.39 per diluted share, a year ago.
For the full year, income from continuing operations was $59.9 million, or $1.82 per diluted share, up 14 percent from $52.6 million, or $1.61 per diluted share, in 2004. Excluding expense and benefit items related to the Company's regional reorganization, income from continuing operations increased 15 percent to $60.4 million, or $1.84 per diluted share. Net income for 2005 was up 22 percent to $61.1 million, or $1.86 per diluted share, compared to $50.1 million, or $1.53 per share, a year ago.
Other financial highlights for the fourth quarter of 2005, as compared to the prior year period, included:
* Total revenue for the quarter was approximately $1.3 billion, up 3
percent. Total gross profit was $206.9 million, also up 3 percent.
* Same-store retail revenue and gross profit (excluding fleet and
wholesale) were both up 1 percent.
* New vehicle retail revenue increased 3 percent (flat same-store), and
unit sales increased 1 percent (down 2 percent same-store). New vehicle
retail gross profit decreased 4 percent (down 6 percent same-store).
* Used vehicle retail revenue increased 7 percent (3 percent same-store),
and unit sales increased 2 percent (down 3 percent same-store). Used
vehicle retail gross profit increased 12 percent (7 percent same-store).
* Parts, service and collision repair revenue increased 8 percent
(6 percent same-store), and gross profit increased 6 percent (4 percent
same-store).
* Net finance and insurance (F&I) revenue increased 3 percent (flat same-
store). F&I per vehicle retailed (PVR) increased 2 percent to $929
while dealership generated F&I PVR was up 2 percent to $902.
* Selling, general and administrative (SG&A) expenses, as a percentage of
gross profit, were 77.2 percent for the quarter, compared with 79.0
percent a year ago. Excluding rent and the effect of our regional
reorganization, SG&A expenses, as a percentage of gross profit, were
73.0 percent, compared to 73.2 percent for the prior year period.
* Excluding results in Florida, which were up significantly in the fourth
quarter of 2004 due to a rebound in that region following several
hurricanes in the third quarter of 2004, same-store retail revenue and
gross profit (excluding fleet and wholesale) were up 4 percent and
3 percent, respectively.
* For the full year, same-store retail revenue and gross profit increased
8 percent and 7 percent, respectively. Same-store gross profit for the
year was up 3 percent in new vehicles; up 14 percent in used vehicles;
up 8 percent in parts, service and collision repair; and up 9 percent in
finance and insurance. Selling, general and administrative (SG&A)
expenses, as a percentage of gross profit, were 78.0 percent, compared
with 78.9 percent a year ago. Excluding rent and the expense and
benefit items related to the Company's regional reorganization, SG&A
expenses, as a percentage of gross profit, were 72.2 percent as compared
to 73.9 percent in 2004.
President and CEO Kenneth B. Gilman said, "We are pleased to report earnings for the quarter from continuing operations, excluding items related to our regional reorganization, well above the consensus estimate, despite a challenging retail environment. We believe we meaningfully outperformed the industry. For example, our 2 percent decline in same-store new vehicle unit sales for the quarter was significantly less than the industry's 7 percent decline. Excluding Florida, our same-store new unit sales were actually up 1 percent, as we continue to benefit from our brand mix, which emphasizes mid- line import and luxury brands.
"Used vehicles and fixed operations again turned in solid performances for the quarter, with same-store gross profit increases of 7 percent and 4 percent, respectively. For the full year, those businesses were even stronger, with respective increases of 14 percent and 8 percent in same-store gross profit. By investing strategically in training, technology and -- where appropriate -- additional capacity, we are systematically improving our performance in these key profit centers."
J. Gordon Smith, Senior Vice President and CFO, said, "Our adjusted EPS from continuing operations of $1.84 excludes one-time items associated with our regional reorganization. If you adjust our most recent guidance to exclude these one-time items, our EPS guidance adjusts to a range of $1.79 to $1.85. So we are very pleased to be at the top end of the range. We made solid progress during 2005 on the expense front. Excluding rent expense and expense and benefit items related to the Company's regional reorganization, as a percentage of gross profit, SG&A expenses were down 160 basis points compared to the prior year. We expect further improvement in 2006 as we realize the continued benefits of our regional reorganization program."
Mr. Smith continued, "During the fourth quarter, we completed all but one transaction related to the sale of our remaining dealerships in Oregon, which is planned to close shortly. These sales are part of our ongoing program of optimizing Asbury's portfolio of dealerships through strategic acquisitions and divestitures. Asset sales related to Oregon during the quarter generated approximately $27 million in after-tax cash proceeds, with an additional $33 million anticipated in the first half of 2006."
Commenting on initial earnings guidance for 2006, the Company expects that a reasonable estimate range would be between $1.85 and $1.90 from continuing operations, before considering the impact of stock-based compensation, which we estimate will total $0.10 on an EPS basis. The guidance assumes the Fed Funds Rate will increase to 5 percent by May. This increase, coupled with last year's increases, will have a $0.15 EPS impact on 2006 earnings. In addition, a fix-to-float swap will be expiring in March and will have a $0.08 negative impact on 2006 EPS.
Mr. Gilman concluded, "Asbury's solid results in 2005 are a testament to the flexibility and diverse growth opportunities inherent in our balanced retail and services business model. To a significant extent, the year's results were driven by our own ability to continue executing against our organic growth initiatives. The product we're selling is not unique, so our success is ultimately determined by how well we execute. With prudent expense management as well, Asbury clearly has the potential to meaningfully grow earnings and build shareholder value in 2006 and beyond."
About Asbury Automotive Group
Asbury Automotive Group, Inc., headquartered in New York City, is one of the largest automobile retailers in the U.S., with 2005 revenue of approximately $5.5 billion. Built through a combination of organic growth and a series of strategic acquisitions, the Company currently operates 89 retail auto stores, encompassing 124 franchises for the sale and servicing of 33 different brands of American, European and Asian automobiles. Asbury believes that its product mix contains a higher proportion of the more desirable luxury and mid-line import brands than most public automotive retailers. The Company offers customers an extensive range of automotive products and services, including new and used vehicle sales and related financing and insurance, vehicle maintenance and repair services, replacement parts and service contracts.
Forward-Looking Statements
Asbury Automotive Group, Inc.
Consolidated Statements of Income
(In thousands, except per share data)
(Unaudited)
For the Three Months For the Year Ended
Ended December 31, December 31,
2005 2004 2005 2004
REVENUES:
New vehicle $825,485 $815,760 $3,385,294 $3,070,274
Used vehicle 321,322 301,944 1,356,523 1,189,458
Parts, service and
collision repair 164,461 152,739 647,262 577,820
Finance and insurance, net 36,070 35,023 151,584 134,376
Total revenues 1,347,338 1,305,466 5,540,663 4,971,928
COST OF SALES:
New vehicle 767,257 754,999 3,151,494 2,849,707
Used vehicle 292,830 276,638 1,236,540 1,090,170
Parts, service and
collision repair 80,378 73,117 314,259 276,228
Total cost of sales 1,140,465 1,104,754 4,702,293 4,216,105
GROSS PROFIT 206,873 200,712 838,370 755,823
OPERATING EXPENSES:
Selling, general and
administrative 159,755 158,595 654,210 596,620
Depreciation and
amortization 5,299 4,486 19,733 18,243
Income from operations 41,819 37,631 164,427 140,960
OTHER INCOME (EXPENSE):
Floor plan interest expense (8,309) (5,759) (29,054) (19,457)
Other interest expense (10,658) (10,031) (40,846) (39,059)
Interest income 372 155 971 746
Other income (expense), net (221) 352 260 765
Total other expense, net (18,816) (15,283) (68,669) (57,005)
Income before income
taxes 23,003 22,348 95,758 83,955
INCOME TAX EXPENSE 8,571 8,381 35,854 31,306
INCOME FROM CONTINUING
OPERATIONS 14,432 13,967 59,904 52,649
DISCONTINUED OPERATIONS, net of
tax 6,070 (1,122) 1,177 (2,576)
NET INCOME $20,502 $12,845 $61,081 $50,073
BASIC EARNINGS PER COMMON
SHARE:
Continuing operations $0.44 $0.43 $1.83 $1.62
Discontinued operations 0.18 (0.04) 0.04 (0.08)
Net income $0.62 $0.39 $1.87 $1.54
DILUTED EARNINGS PER COMMON SHARE:
Continuing operations $0.44 $0.43 $1.82 $1.61
Discontinued operations 0.18 (0.04) 0.04 (0.08)
Net income $0.62 $0.39 $1.86 $1.53
WEIGHTED AVERAGE COMMON SHARES
OUTSTANDING:
Basic 32,832 32,561 32,691 32,502
Diluted 33,044 32,672 32,896 32,674
Asbury Automotive Group, Inc.
Selected Data
(Dollars in thousands)
(Unaudited)
As Reported for the
Three Months Ended December 31,
2005 2004
RETAIL VEHICLES SOLD:
New units 24,870 64.1% 24,583 64.2%
Used units 13,945 35.9% 13,721 35.8%
Total units 38,815 100.0% 38,304 100.0%
REVENUE:
New retail $792,775 58.8% $773,067 59.2%
Used retail 240,950 17.9% 224,475 17.2%
Parts, service and collision
repair 164,461 12.3% 152,739 11.7%
Finance and insurance, net 36,070 2.7% 35,023 2.8%
Total retail revenue 1,234,256 1,185,304
Fleet 32,710 2.4% 42,693 3.2%
Wholesale 80,372 5.9% 77,469 5.9%
Total revenue $1,347,338 100.0% $1,305,466 100.0%
GROSS PROFIT:
New retail $57,631 27.9% $60,153 30.0%
Used retail 28,403 13.7% 25,422 12.7%
Parts, service and collision
repair 84,083 40.7% 79,622 39.7%
Finance and insurance, net 36,070 17.4% 35,023 17.4%
Total retail gross profit 206,187 200,220
Fleet 597 0.3% 608 0.3%
Wholesale 89 -- (116) (0.1%)
Total gross profit $206,873 100.0% $200,712 100.0%
SG&A expenses excluding one-time
reorganization benefit and rent $151,037 $146,974
SG&A expenses excluding one-time
reorganization benefit and rent
as a percentage of gross profit 73.0% 73.2%
REVENUE PER VEHICLE RETAILED:
New retail $31,877 $31,447
Used retail 17,279 16,360
GROSS PROFIT PER VEHICLE RETAILED:
New retail $2,317 $2,447
Used retail 2,037 1,853
Finance and insurance, net 929 914
Dealership generated finance and
insurance, net 902 885
GROSS PROFIT MARGIN:
New retail 7.3% 7.8%
Used retail 11.8% 11.3%
Parts, service and collision
repair 51.1% 52.1%
Same Store for the
Three Months Ended December 31,
2005 2004
RETAIL VEHICLES SOLD:
New units 24,159 64.4% 24,583 64.2%
Used units 13,351 35.6% 13,721 35.8%
Total units 37,510 100.0% 38,304 100.0%
REVENUE:
New retail $772,695 58.9% $773,067 59.2%
Used retail 231,731 17.6% 224,475 17.2%
Parts, service and collision
repair 161,883 12.4% 152,739 11.7%
Finance and insurance, net 35,106 2.7% 35,023 2.8%
Total retail revenue 1,201,415 1,185,304
Fleet 32,310 2.4% 42,693 3.2%
Wholesale 78,515 6.0% 77,469 5.9%
Total revenue $1,312,240 100.0% $1,305,466 100.0%
GROSS PROFIT:
New retail $56,390 27.9% $60,153 30.0%
Used retail 27,267 13.5% 25,422 12.7%
Parts, service and collision
repair 82,758 40.9% 79,622 39.7%
Finance and insurance, net 35,106 17.3% 35,023 17.4%
Total retail gross profit 201,521 200,220
Fleet 597 0.3% 608 0.3%
Wholesale 58 0.1% (116) (0.1%)
Total gross profit $202,176 100.0% $200,712 100.0%
SG&A expenses excluding one-time
reorganization benefit and rent $147,918 $146,974
SG&A expenses excluding one-time
reorganization benefit and rent
as a percentage of gross profit 73.2% 73.2%
REVENUE PER VEHICLE RETAILED:
New retail $31,984 $31,447
Used retail 17,357 16,360
GROSS PROFIT PER VEHICLE RETAILED:
New retail $2,334 $2,447
Used retail 2,042 1,853
Finance and insurance, net 936 914
Dealership generated finance and
insurance, net 907 885
GROSS PROFIT MARGIN:
New retail 7.3% 7.8%
Used retail 11.8% 11.3%
Parts, service and collision
repair 51.1% 52.1%
Asbury Automotive Group, Inc.
Selected Data
(Dollars in thousands)
(Unaudited)
As Reported for the
Year Ended December 31,
2005 2004
RETAIL VEHICLES SOLD:
New units 105,521 63.5% 97,148 63.7%
Used units 60,615 36.5% 55,448 36.3%
Total units 166,136 100.0% 152,596 100.0%
REVENUE:
New retail $3,238,790 58.5% $2,954,145 59.4%
Used retail 1,021,909 18.5% 879,399 17.7%
Parts, service and collision
repair 647,262 11.7% 577,820 11.6%
Finance and insurance, net 151,584 2.7% 134,376 2.7%
Total retail revenue 5,059,545 4,545,740
Fleet 146,504 2.6% 116,129 2.4%
Wholesale 334,614 6.0% 310,059 6.2%
Total revenue $5,540,663 100.0% $4,971,928 100.0%
GROSS PROFIT:
New retail $231,087 27.6% $218,397 28.9%
Used retail 119,572 14.3% 101,669 13.4%
Parts, service and collision
repair 333,003 39.7% 301,592 39.9%
Finance and insurance, net 151,584 18.1% 134,376 17.8%
Total retail gross profit 835,246 756,034
Fleet 2,713 0.3% 2,170 0.3%
Wholesale 411 -- (2,381) (0.3%)
Total gross profit $838,370 100.0% $755,823 100.0%
SG&A expenses excluding one-time
reorganization benefit,
reorganization expense and rent $605,456 $558,297
SG&A expenses excluding one-time
reorganization benefit,
reorganization expense and rent
as a percentage of gross profit 72.2% 73.9%
REVENUE PER VEHICLE RETAILED:
New retail $30,693 $30,409
Used retail 16,859 15,860
GROSS PROFIT PER VEHICLE RETAILED:
New retail $2,190 $2,248
Used retail 1,973 1,834
Finance and insurance, net 912 881
Dealership generated finance and
insurance, net 883 843
GROSS PROFIT MARGIN:
New retail 7.1% 7.4%
Used retail 11.7% 11.6%
Parts, service and collision
repair 51.4% 52.2%
Same Store for the
Year Ended December 31,
2005 2004
RETAIL VEHICLES SOLD:
New units 101,179 63.4% 97,148 63.7%
Used units 58,397 36.6% 55,448 36.3%
Total units 159,576 100.0% 152,596 100.0%
REVENUE:
New retail $3,125,390 58.3% $2,954,145 59.4%
Used retail 987,500 18.4% 879,399 17.7%
Parts, service and collision
repair 634,576 11.9% 577,820 11.6%
Finance and insurance, net 146,280 2.7% 134,376 2.7%
Total retail revenue 4,893,746 4,545,740
Fleet 144,248 2.7% 116,129 2.4%
Wholesale 322,911 6.0% 310,059 6.2%
Total revenue $5,360,905 100.0% $4,971,928 100.0%
GROSS PROFIT:
New retail $223,875 27.5% $218,397 28.9%
Used retail 115,888 14.2% 101,669 13.4%
Parts, service and collision
repair 326,029 40.0% 301,592 39.9%
Finance and insurance, net 146,280 17.9% 134,376 17.8%
Total retail gross profit 812,072 756,034
Fleet 2,700 0.4% 2,170 0.3%
Wholesale 409 -- (2,381) (0.3%)
Total gross profit $815,181 100.0% $755,823 100.0%
SG&A expenses excluding one-time
reorganization benefit,
reorganization expense and rent $587,357 $557,267
SG&A expenses excluding one-time
reorganization benefit,
reorganization expense and rent
as a percentage of gross profit 72.1% 73.7%
REVENUE PER VEHICLE RETAILED:
New retail $30,890 $30,409
Used retail 16,910 15,860
GROSS PROFIT PER VEHICLE RETAILED:
New retail $2,213 $2,248
Used retail 1,984 1,834
Finance and insurance, net 917 881
Dealership generated finance and
insurance, net 886 843
GROSS PROFIT MARGIN:
New retail 7.2% 7.4%
Used retail 11.7% 11.6%
Parts, service and collision
repair 51.4% 52.2%
Asbury Automotive Group, Inc.
Selected Data
(Dollars in thousands)
(Unaudited)
As of As of
December December
31, 2005 31, 2004
BALANCE SHEET HIGHLIGHTS:
Cash and cash equivalents $57,194 $28,093
Inventories 709,791 761,557
Total current assets 1,185,180 1,143,006
Floor plan notes payable 614,382 650,948
Total current liabilities 838,226 847,510
CAPITALIZATION:
Long-term debt (including current portion) $496,949 $526,416
Stockholders' equity 547,766 481,732
Total $1,044,715 $1,008,148
ASBURY AUTOMOTIVE GROUP, INC.
SUPPLEMENTAL DISCLOSURES REGARDING NON-GAAP FINANCIAL INFORMATION
(In thousands, except vehicle data)
(Unaudited)
The Company evaluates finance and insurance gross profit performance on a per-vehicle retailed ("PVR") basis by dividing total finance and insurance gross profit by the number of retail vehicles sold. During 2003, the Company renegotiated a contract with a third party finance and insurance product provider, which resulted in the recognition of income in 2005 and 2004 that was not attributable to retail vehicles sold during 2005 and 2004. The Company believes that dealership generated finance and insurance PVR, which excludes the additional revenue derived from contracts negotiated by the corporate office, provides a more accurate measure of the Company's finance and insurance operating performance. The following table reconciles finance and insurance gross profit to dealership generated finance and insurance gross profit, and provides the necessary components to calculate dealership generated finance and insurance gross profit PVR.
As Reported For Same Store For
the Three the Three
Months Ended Months Ended
December 31, December 31,
2005 2004 2005 2004
RECONCILIATION OF FINANCE AND
INSURANCE GROSS PROFIT TO
DEALERSHIP GENERATED FINANCE
AND INSURANCE GROSS PROFIT:
Finance and insurance, net $36,070 $35,023 $35,106 $35,023
Less: corporate generated
finance and insurance (1,068) (1,138) (1,068) (1,138)
Dealership generated finance and
insurance, net $35,002 $33,885 $34,038 $33,885
RETAIL VEHICLES SOLD:
New retail units 24,870 24,583 24,159 24,583
Used retail units 13,945 13,721 13,351 13,721
Total units 38,815 38,304 37,510 38,304
Finance and insurance PVR $929 $914 $936 $914
Dealership generated finance and
insurance PVR $902 $885 $907 $885
As Reported For the Same Store For the
Year Ended Year Ended
December 31, December 31,
2005 2004 2005 2004
RECONCILIATION OF FINANCE
AND INSURANCE GROSS
PROFIT TO DEALERSHIP
GENERATED FINANCE AND
INSURANCE GROSS PROFIT:
Finance and insurance, net $ 151,584 $134,376 $146,280 $134,376
Less: corporate
generated finance
and insurance (4,822) (5,695) (4,822) (5,695)
Dealership generated
finance and insurance, net $ 146,762 $128,681 $141,458 $128,681
RETAIL VEHICLES SOLD:
New retail units 105,521 97,148 101,179 97,148
Used retail units 60,615 55,448 58,397 55,448
Total units 166,136 152,596 159,576 152,596
Finance and
insurance PVR $912 $881 $917 $881
Dealership generated
finance and
insurance PVR $883 $843 $886 $843
The Company's operating income was largely impacted by reorganization costs incurred and a one-time reorganization benefit realized during 2005 and incremental rent expense associated with a sale-leaseback transaction that was entered into in the third quarter of 2004. The Company believes that excluding the reorganization costs and rent expense from the selling, general and administrative expenses provides a more meaningful basis to measure the results of the Company's operations compared to that of the prior year period. A reconciliation of the Company's adjusted selling, general and administrative expenses is presented below.
As Reported As Reported
for the for the
Three Months Three Months
Ended Ended
December 31, December 31,
2005 2004 $ Variance % Variance
SG&A expenses $159,755 $158,595 $1,160 1 %
One-time
reorganization
benefit 3,382 --
Rent expense (12,100) (11,621) 479 4 %
Adjusted SG&A
expenses $151,037 $146,974 $4,063 3 %
Same Store Same Store
Results for Results for
the Three the Three
Months Ended Months Ended
December 31, December 31,
2005 2004 $ Variance % Variance
SG&A expenses $156,224 $158,595 $(2,371) (1%)
One-time
reorganization
benefit 3,382 --
Rent expense (11,688) (11,621) 67 1 %
Adjusted SG&A
expenses $147,918 $146,974 $944 1 %
As Reported As Reported
for the for the
Year Ended Year Ended
December 31, December 31,
2005 2004 $ Variance % Variance
SG&A expenses $654,210 $596,620 $57,590 10 %
One-time
reorganization
benefit 3,382 --
Reorganization
expense (4,157) --
Rent expense (47,979) (38,323) 9,656 25 %
Adjusted SG&A
expenses $605,456 $558,297 $47,159 8 %
Same Store Same Store
Results for Results for
the Year the Year
Ended Ended
December 31, December 31,
2005 2004 $ Variance % Variance
SG&A expenses $633,638 $595,566 $38,072 6 %
One-time
reorganization
benefit 3,382 --
Reorganization
expense (4,157) --
Rent expense (45,506) (38,299) 7,207 19 %
Adjusted SG&A
expenses $587,357 $557,267 $30,090 5 %
The Company defines income from continuing operations as net income less discontinued operations, net of tax. We believe that excluding certain items from income from continuing operations for the three months and year ended December 31, 2005 and 2004, provides a more meaningful basis to measure the results of our operations. A reconciliation of our net income to adjusted income from continuing operations is presented below.
RECONCILIATION OF NET
INCOME TO ADJUSTED For the Three
INCOME FROM CONTINUING Months Ended
OPERATIONS: December 31, $ Variance % Variance
2005 2004
Net income $20,502 $12,845 $7,657 60%
Discontinued
operations,
net of tax (6,070) 1,122 (7,192) NM
Income from
continuing operations 14,432 13,967 465 3%
One-time reorganization
benefit, net of tax (2,114) --
Adjusted income from
continuing operations $12,318 $13,967 $(1,649) (12%)
RECONCILIATION OF NET
INCOME PER DILUTED
COMMON SHARE TO
ADJUSTED INCOME FROM
CONTINUING OPERATIONS
PER DILUTED COMMON SHARE:
Net income $ 0.62 $0.39 $0.23 59%
Discontinued operations,
net of tax (0.18) 0.04 (0.22) NM
Income from
continuing operations 0.44 0.43 0.01 2%
One-time reorganization
benefit, net of tax (0.07) --
Adjusted income from
continuing operations $ 0.37 $0.43 $ (0.06) (14%)
Weighted average common
shares outstanding
(diluted): 33,044 32,672
RECONCILIATION OF NET
INCOME TO ADJUSTED
INCOME FROM CONTINUING For the Year
OPERATIONS: Ended December 31, $ Variance % Variance
2005 2004
Net income $61,081 $50,073 $ 11,008 22%
Discontinued operations,
net of tax (1,177) 2,576 (3,753) (146%)
Income from
continuing operations 59,904 52,649 7,255 14%
One-time reorganization
benefit, net of tax (2,114) --
Reorganization expense,
net of tax 2,598 --
Adjusted income from
continuing
operations $60,388 $52,649 $7,739 15%
RECONCILIATION OF NET
INCOME PER DILUTED
COMMON SHARE TO ADJUSTED
INCOME FROM CONTINUING
OPERATIONS PER DILUTED
COMMON SHARE:
Net income $ 1.86 $1.53 $0.33 22%
Discontinued
operations,
net of tax (0.04) 0.08 (0.12) (150%)
Income from continuing
operations 1.82 1.61 0.21 13%
One-time reorganization
benefit, net of tax (0.06) --
Reorganization expense,
net of tax 0.08 --
Adjusted income from
continuing operations $ 1.84 $1.61 $0.23 14%
Weighted average common
shares outstanding
(diluted): 32,896 32,674