-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: webmaster@www.sec.gov Originator-Key-Asymmetric: MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB MIC-Info: RSA-MD5,RSA, HyiUOU6wH8WVDVnLyyfICf1f0YMym09Smd82JX6c62JP/oGlXF0XwB9G7zu1V7hv 1kKvbTxcNc7fhh4ne9SfkQ== 0000356226-00-000004.txt : 20000403 0000356226-00-000004.hdr.sgml : 20000403 ACCESSION NUMBER: 0000356226-00-000004 CONFORMED SUBMISSION TYPE: 425 PUBLIC DOCUMENT COUNT: 1 FILED AS OF DATE: 20000331 SUBJECT COMPANY: COMPANY DATA: COMPANY CONFORMED NAME: POLICY MANAGEMENT SYSTEMS CORP CENTRAL INDEX KEY: 0000356226 STANDARD INDUSTRIAL CLASSIFICATION: INSURANCE AGENTS BROKERS & SERVICES [6411] IRS NUMBER: 570723125 STATE OF INCORPORATION: SC FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 425 SEC ACT: SEC FILE NUMBER: 001-10557 FILM NUMBER: 589876 BUSINESS ADDRESS: STREET 1: ONE PMSC CTR STREET 2: PO BOX TEN CITY: COLUMBIA STATE: SC ZIP: 29202 BUSINESS PHONE: 8037354000 FILED BY: COMPANY DATA: COMPANY CONFORMED NAME: POLICY MANAGEMENT SYSTEMS CORP CENTRAL INDEX KEY: 0000356226 STANDARD INDUSTRIAL CLASSIFICATION: INSURANCE AGENTS BROKERS & SERVICES [6411] IRS NUMBER: 570723125 STATE OF INCORPORATION: SC FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 425 BUSINESS ADDRESS: STREET 1: ONE PMSC CTR STREET 2: PO BOX TEN CITY: COLUMBIA STATE: SC ZIP: 29202 BUSINESS PHONE: 8037354000 425 1 Timothy V. Williams Charles T. Conway Jr. Executive Vice President & Director, Corporate Communications Chief Financial Officer (803) 333-5348 (803) 333-5638 E-mail: charlieconway@pmsc.com E-mail:timvwilliams@pmsc.com PMSC ANNOUNCES FOURTH QUARTER AND FULL YEAR 1999 RESULTS -------------------------------------------------------- LOSS PER SHARE FROM CONTINUING OPERATIONS IS $0.18 FOR FOURTH QUARTER BEFORE SPECIAL CHARGES OF $38.8 MILLION; FULL YEAR EPS IS $0.92 BEFORE CHARGES OF $165.7 MILLION COLUMBIA, S.C., MARCH 30 2000: Policy Management Systems Corporation (NYSE: PMS) (PMSC) announced today its results for the fourth quarter and full year 1999. FOURTH QUARTER RESULTS ---------------------- For the fourth quarter, revenues, loss from continuing operations and loss per share were $141.4 million, $30.7 million and $0.87 per share, respectively. In the quarter, the company recorded unusual events, transactions and certain accounting changes (collectively, special charges) of $38.3 million pre-tax, $18.1 million of which were non-cash. Without these special charges, which are discussed below, revenues, loss from continuing operations and loss per share would have been $154.5 million, $6.4 million and $0.18, respectively. The quarter's special charges were related primarily to the company's banking division ($24.6 million) and adjustments to the accounting for two long-term contracts ($8.4 million), including one in the international division. Performance in the company's banking division deteriorated in the fourth quarter and substantially worsened in early 2000, principally as a result of rapid increases in mortgage loan rates and corresponding decreases in loan originations. The company believes existing and prospective customers reevaluated their system requirements in light of changing market conditions resulting in the cancellation or deferral of many loan origination system projects. While the company has several important customers in this sector who are using its systems successfully, it is in negotiations to resolve disputes and issues with other customers. In addition, the forecast of new licenses in the banking division was revised downward, resulting in a $16.4 million write-off of previously capitalized internal software development costs. Separately, the company changed its estimates on two long-term contracts accounted for under the percentage of completion method, resulting in an adjustment to accrued revenue of $8.4 million. The company also identified revenues related to three transactions totaling $3.2 million recognized previously in 1999 as requiring adjustment due to the Securities and Exchange Commission's Staff Accounting Bulletin 101 ("SAB 101"). FULL YEAR RESULTS ----------------- For the year, revenues, loss from continuing operations and loss per share were $644.0 million, $72.0 million and $2.02, respectively. For the year, the company recorded special charges in the amount of $165.7 million. These charges include approximately $118.4 million of non-cash charges related to the write-down or write-off of software, goodwill and other intangibles. Cash charges included $13.0 million for doubtful receivables, $12.9 million related to restructuring operations, $9.6 million for litigation settlement expenses and $8.4 million related to changes in estimates on two long-term contracts. In addition, the company also identified revenue related to three transactions totaling $3.2 million recognized previously in 1999 as requiring adjustment due to SAB 101. Without these special charges, revenues, income from continuing operations and earnings per share would have been $657.1 million, $ 33.6 million and $0.92, respectively. In 1998, comparable revenues income and earnings per share from continuing operations before special charges were $607.5 million, $62.8 million and $1.60 per share, respectively. "These results are extremely disappointing," said Mr. Larry Wilson, chairman and chief executive office of PMSC. "As our customers assess the impact of the Internet and reevaluate their traditional ways of conducting business, we are transitioning our products and services to reflect the rapid pace of technological change in insurance and financial services. We are moving aggressively to reduce our cost structure, introduce new products and strengthen our capital base so that we can complete this transition and deliver new eBusiness solutions to our customers." The company announced today that it has signed a definitive agreement with an affiliate of Welsh, Carson, Anderson & Stowe, a leading New York-based private investment firm. (See PMSC's separate news release concerning the agreement). LITIGATION ---------- In regard to previously disclosed litigation with Computer Sciences Corporation (CSC), on March 11, CSC's request for preliminary injunctive relief was denied, and the case has been set for trial in December 2000. PMSC will vigorously defend the matter. PMSC, headquartered in Columbia, S.C., is the leader in providing enterprise and electronic commerce application software, professional services, and outsourcing designed to meet the needs of the global insurance and related financial services industries. Information on PMSC and its products and services can be found on the World Wide Web at http://www.pmsc.com. * * * * * * * * * * The Private Securities Litigation Reform Act of 1995 provided a "safe harbor" for certain forward-looking statements. The forward-looking statements contained in this release are subject to certain risks and uncertainties. Actual results could differ materially from current expectations. Among the factors which could affect the company's actual results and could cause results to differ from those contained in the forward-looking statements contained herein are customer acceptance of the company's new products and services, the success of the company's market penetration efforts, and timing of customers' decisions to enter into agreements for the company's products and services. Statements about the proposed agreement are forward-looking statements that involve risks and uncertainties. Among the factors that could cause actual results to differ materially from those in the forward looking statements are: the failure of the agreement to be consummated and those factors in PMSC's 1999 Annual Report on Form 10K and other reports and filings with the U.S. Securities and Exchange Commission. PMSC disclaims any intention or obligation to update or revise any forward-looking statements. Investors are urged to read the Current Report on Form 8-K and proxy statement/prospectus relating to the agreement and any other relevant documents filed by PMSC with the Securities and Exchange Commission, when available, because they will contain important information. Investors will be able to obtain these documents, when available, for free from the SEC's web site, www.sec.gov or from PMSC investor services at http://www.pmsc.com.
POLICY MANAGEMENT SYSTEMS CORPORATION CONSOLIDATED STATEMENTS OF OPERATIONS Three Months Twelve Months Ended December 31, Ended December 31, 1999 1998 1999 1998 (Unaudited) ------------------------------------------------ (In Thousands, Except Per Share Data) Revenues Licensing. . . . . . . . . . . . . . . . $ 26,092 $ 44,120 $ 141,939 $133,814 Services . . . . . . . . . . . . . . . . 115,258 126,725 502,080 473,644 --------- --------- ---------- --------- 141,350 170,845 644,019 607,458 --------- --------- ---------- --------- Operating expenses Cost of revenues Employee compensation and benefits. . . 80,344 74,286 309,089 268,096 Computer and communications expenses. . 14,730 11,839 51,021 38,451 Depreciation and amortization of property, equipment and capitalized software costs . . . . . . 32,352 24,827 174,146 71,376 Other costs & expenses. . . . . . . . . 23,667 6,215 55,375 23,897 Selling, general and administrative expenses . . . . . . . . . . . . . . . 32,451 28,918 115,714 103,909 Amortization of goodwill and other intangibles. . . . . . . . . . . 3,952 2,980 20,468 10,565 Restructuring and other charges. . . . . 319 - 22,478 - Acquisition related charges. . . . . . . - - - 3,732 --------- --------- ---------- --------- 187,815 149,065 748,291 520,026 Operating (loss) income . . . . . . . . . (46,465) 21,780 (104,272) 87,432 Equity in earnings of unconsolidated affiliates. . . . . . . 1,300 596 1,908 1,163 Minority interest . . . . . . . . . . . . 30 (30) (62) (104) Other income and expenses: Investment income . . . . . . . . . . . 660 493 1,313 1,569 Interest expense and other charges. . . (4,182) (1,231) (12,006) (3,705) --------- --------- ---------- --------- (3,522) (738) (10,693) (2,136) --------- --------- ---------- --------- (Loss) income from continuing operations before income taxes . . . . . . . . . . (48,657) 21,608 (113,119) 86,355 Income tax (benefit) expense. . . . . . . (18,002) 7,892 (41,148) 32,619 --------- --------- ---------- --------- (Loss) income from continuing operations. (30,655) 13,716 (71,971) 53,736 Discontinued operations: Income from operations of discontinued operations less applicable income taxes of $252 . . . . - - 389 Loss on disposal of discontinued operations less applicable income tax benefit of $167 and $38 . . . . . . - (401) - (854) --------- --------- ---------- --------- - (401) - (465) --------- --------- ---------- --------- Net (loss) income . . . . . . . . . . . . $(30,655) $ 13,315 $ (71,971) $ 53,271 ========= ========= ========== ========= Basic earnings per share: (Loss) income from continuing operations $ (0.87) 0.38 $ (2.02) $ 1.47 Loss from discontinued operations. . . . - (.01) - (.01) --------- --------- ---------- --------- $ (0.87) $ 0.37 $ (2.02) $ 1.46 ========= ========= ========== ========= Diluted earnings per share: (Loss) income from continuing operations $ (0.87) $ 0.35 $ (2.02) $ 1.37 Loss from discontinued operations. . . . - (.01) - (.01) --------- --------- ---------- --------- $ (0.87) $ 0.34 $ (2.02) $ 1.36 ========= ========= ========== ========= Weighted average common shares. . . . . . 35,369 35,979 35,549 36,441 Weighted average common shares assuming dilution . . . . . . . . . . . 35,369 38,866 35,549 39,289 See accompanying notes.
POLICY MANAGEMENT SYSTEMS CORPORATION CONSOLIDATED BALANCE SHEETS December 1999 December 1998 ---------- ------------ (In thousands, except share data) Assets Current assets Cash and equivalents $ 17,744 $ 26,013 Marketable securities 89 - Receivables, net of allowance for uncollectible amounts of $13,000 ($2,051 at 1998) 99,669 123,427 Accrued revenues 36,393 26,557 Deferred income taxes 15,979 9,336 Income tax receivable 9,728 - Other receivable 7,788 11,279 Prepaids 12,050 8,645 Other 12,559 11,866 --------- --------- Total current assets $211,999 217,123 Property and equipment, at cost less accumulated depreciation and amortization of $132,347 ($128,363 at 1998) 142,867 135,538 Accrued revenues 16,130 7,844 Income tax receivable 4,041 4,041 Goodwill and other intangibles, net 111,024 81,401 Capitalized software costs, net 155,896 220,908 Deferred income taxes 29,850 24,787 Investments 13,332 9,661 Other 21,149 17,395 --------- --------- Total assets $706,288 $718,698 ========= ========= Liabilities Current liabilities Accounts payable and accrued expenses $ 41,236 $ 57,129 Current portion of long-term debt 4,000 15,812 Income taxes payable 4,616 9,202 Unearned revenues 20,290 15,804 Accrued restructuring and other charges 3,630 806 Other 2,223 182 --------- --------- Total current liabilities 75,995 98,935 Long-term debt 227,000 85,000 Deferred income taxes 68,514 98,233 Accrued restructuring and other charges 2,659 767 Other 9,935 2,753 --------- --------- Total liabilities 384,103 285,688 --------- --------- Minority interest 624 526 Stockholders' equity Special stock, $.01 par value, 5,000,000 shares - - authorized Common stock, $.01 par value, 75,000,000 shares authorized, 35,585,078 shares issued and outstanding (36,357,139 at December 31, 1998) 356 364 Additional paid-in capital 56,695 82,396 Retained earnings 287,483 359,454 Accumulated other comprehensive income (12,972) (9,730) Stock employee compensation trust (10,001) - --------- --------- Total stockholders' equity 321,561 432,484 --------- --------- Total liabilities and stockholders' equity $706,288 $718,698 ========= ========= See accompanying notes.
POLICY MANAGEMENT SYSTEMS CORPORATION CONSOLIDATED STATEMENTS OF CASH FLOWS Twelve Months Ended December 31, 1999 1998 ------- ------- (In thousands) Operating Activities Net (loss) income. . . . . . . . . . . . . . . . . $ (71,971) $ 53,271 Adjustments to reconcile net (loss) income to net cash provided by operating activities: Depreciation and amortization. . . . . . . . . . 201,562 87,979 Deferred income taxes. . . . . . . . . . . . . . (46,481) 5,338 Provision for uncollectible accounts . . . . . . 12,350 90 Gain on disposal of discontinued operations. . . - (1,986) Acquisition related charges. . . . . . . . . . . - 3,732 Changes in assets and liabilities: Receivables. . . . . . . . . . . . . . . . . . . 18,612 (37,775) Accrued revenues . . . . . . . . . . . . . . . . (17,980) 7,739) Other receivable . . . . . . . . . . . . . . . . 11,279 - Accounts payable and accrued expenses. . . . . . (18,023) (3,540) Accrued restructuring and other charges. . . . . 5,030 62 Income taxes . . . . . . . . . . . . . . . . . . (14,599) 1,903 Unearned revenues. . . . . . . . . . . . . . . . 1,967 (3,825) Other, net . . . . . . . . . . . . . . . . . . . (1,708) (13,195) ---------- ---------- Cash provided from operations . . . . . . . . 80,038 99,793 ---------- ---------- Investing Activities Proceeds from sales/maturities of available-for- sale securities . . . . . . . . . . . . . . . . . 2,108 3,257 Proceeds from sales of held-to-maturity securities - 2,969 Proceeds from sale of business segment . . . . . . - 23,826 Acquisition of property and equipment. . . . . . . (35,937) (61,699) Capitalized internal software development costs. . (67,106) (59,642) Business acquisitions and investments. . . . . . . (72,589) (36,898) Proceeds from disposal of property and equipment . 1,316 1,031 Other, net . . . . . . . . . . . . . . . . . . . . (8,441) (11,013) ---------- ---------- Cash used by investing activities . . . . . . (180,649) (138,169) ---------- ---------- Financing Activities Payments on long-term debt . . . . . . . . . . . . (349,012) (67,593) Proceeds from borrowing under credit facility. . . 477,200 129,500 Purchase of stock for Stock Employee Compensation Trust. . . . . . . . . . . . . . . . (10,094) - Issuance of common stock under stock option plans. 7,293 61,641 Repurchase of common stock . . . . . . . . . . . . (33,045) (91,338) ---------- ---------- Cash provided by financing activities . . . . 92,342 32,210 ---------- ---------- Net decrease in cash and equivalents. . . . . . . . (8,269) (6,166) Cash and equivalents at beginning of period . . . . 26,013 32,179 ---------- ---------- Cash and equivalents at end of period . . . . . . . $ 17,744 $ 26,013 ========== ========== Supplemental Information Interest paid. . . . . . . . . . . . . . . . . . . $ 10,275 $ 2,174 Income taxes paid. . . . . . . . . . . . . . . . . 16,568 14,056 Non-cash transactions: During 1999, the Company transferred $7.8 million ($15.0 million gross cost net of amortization) of contract acquisition costs at net book value to other receivables which was paid in January 2000. During 1998, the Company transferred $11.3 million of property, plant and equipment at net book value to Lockheed Martin Corporation which was paid in January 1999.
POLICY MANAGEMENT SYSTEMS CORPORATION CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) Three Months Ended December 31, 1999 1998 ------- ------- (In thousands) Operating Activities Net (loss) income . . . . . . . . . . . . . . . . (30,411) $13,315 Adjustments to reconcile net (loss) income to net cash provided by operating activities: Depreciation and amortization . . . . . . . . . 38,478 28,986 Deferred income taxes . . . . . . . . . . . . . (15,112) 3,821 Provision for uncollectible accounts. . . . . . 11,837 90 Changes in assets and liabilities: Receivables . . . . . . . . . . . . . . . . . . 29,036 (29,365) Accrued revenues. . . . . . . . . . . . . . . . 2,215 4,342 Accounts payable and accrued expenses . . . . . (3,711) 10,587 Accrued restructuring and other charges . . . . (8,170) (23) Income taxes. . . . . . . . . . . . . . . . . . (11,566) (7,133) Unearned revenues . . . . . . . . . . . . . . . 195 3,597 Other, net. . . . . . . . . . . . . . . . . . . 7,974 (8,023) --------- ---------- Cash provided by operations. . . . . . . . . 20,765 20,194 --------- ---------- Investing Activities Proceeds from sales/maturities of available-for- sale securities. . . . . . . . . . . . . . . . . 139 - Acquisition of property and equipment . . . . . . (7,405) (16,412) Capitalized internal software development costs . (16,630) (16,043) Business acquisitions and investments . . . . . . (4,536) (7,394) Proceeds from disposal of property and equipment. 298 (3) Other, net. . . . . . . . . . . . . . . . . . . . (2,553) (4,113) --------- ---------- Cash used by investing activities. . . . . . (30,687) (43,965) --------- ---------- Financing Activities Payments on long-term debt. . . . . . . . . . . . (129,700) (25,274) Proceeds from borrowing under credit facility . . 128,300 48,000 Issuance of common stock under stock option plans 189 32,840 Repurchase of common stock. . . . . . . . . . . . - (21,678) --------- ---------- Cash (used) provided by financing activities (1,211) 33,888 --------- ---------- Net (decrease) increase in cash and equivalents. . (11,133) 10,117 Cash and equivalents at beginning of period. . . . 28,877 15,896 --------- ---------- Cash and equivalents at end of period. . . . . . . $17,744 $26,013 ========= ========== Supplemental Information Interest paid . . . . . . . . . . . . . . . . . . $ 3,781 $ 802 Income taxes paid . . . . . . . . . . . . . . . . 5,800 4,250 Non-cash transactions: During 1999, the Company transferred $7.8 million ($15.0 million gross cost net of amortization) of contract acquisition costs at net book value to other receivables which was paid in January 2000. During 1998, the Company transferred $11.3 million of property, plant and equipment at net book value to Lockheed Martin Corporation which was paid in
POLICY MANAGEMENT SYSTEMS CORPORATION SEGMENT RESULTS (Unaudited) Three Months Twelve Months Ended December 31, Ended December 31, 1999 1998 1999 1998 - ---------------------------------------------------------------------- (In Thousands) REVENUES Enterprise Software and Services Property & Casualty $ 54,228 $ 75,252 $279,035 $278,832 Life 48,571 48,722 189,572 150,564 -------- -------- -------- -------- Total US revenues 102,799 123,974 468,607 429,396 International 38,551 46,871 175,412 178,062 -------- -------- -------- -------- Total revenues $141,350 $170,845 $644,019 $607,458 ======== ======== ======== ======== Discontinued Operations Life Information Services $ - $ - $ - $ 11,968 OPERATING (LOSS) INCOME Enterprise Software and Services Property & Casualty $ (3,853) $22,274 $(28,153) $77,563 Life (22,313) 13,578 (4,874) 33,895 Corporate and US administrative (12,294) (6,488) (40,504) (26,434) -------- -------- -------- -------- Total US (38,460) 29,364 (73,531) 85,024 -------- -------- ------- -------- International (5,884) (5,141) (23,027) 10,963 International administrative (2,121) (2,443) (7,714) (8,555) -------- -------- -------- -------- Total international (8,005) (7,584) (30,741) 2,408 -------- -------- --------- ------- Total operating (loss) income $(46,465) $21,780 $(104,272) $87,432 ======== ========= ========= ========= Discontinued Operations Information Services Property & Casualty $ - $ 568 $ - $ (1,586) Life - - - 3,672 OPERATING (LOSS) INCOME AS PERCENTAGE OF REVENUE Enterprise Software and Services Property & Casualty (7.1)% 29.6% (10.1)% 27.8% Life (45.9) 27.9 (2.6) 22.5 Total US (37.4) 23.7 (15.7) 19.8 International Software and services (15.3) (11.0) (13.1) 6.2% Total international (20.8) (16.2) (17.5) 1.4 Total (32.9)% 12.7% (16.2)% 14.4% Note: Certain prior period amounts have been reclassified for purposes of comparison.
POLICY MANAGEMENT SYSTEMS CORPORATION REVENUE BY BUSINESS UNIT (Unaudited) Three Months Twelve Months Ended December 31, Ended December 31, 1999 1998 1999 1998 ---- ---- ---- ------ (In Thousands) ENTERPRISE SOFTWARE AND SERVICES PROPERTY & CASUALTY ILC . . . . . . . . . $ 3,176 $ 7,664 $ 37,523 $ 20,707 MLC . . . . . . . . . 6,895 8,624 30,055 35,075 Professional Svcs/ITO 33,700 46,625 163,603 184,420 BPO . . . . . . . . . 10,087 12,246 45,096 36,583 Other . . . . . . . . 370 93 2,758 2,047 -------- -------- -------- -------- Total P&C . . . . . . 54,228 75,252 279,035 278,832 -------- -------- -------- -------- LIFE ILC . . . . . . . . . 1,727 14,236 15,539 27,167 MLC . . . . . . . . . 5,093 4,163 20,021 14,598 Professional Svcs/ITO 25,735 26,132 115,218 96,319 BPO . . . . . . . . . 16,016 4,134 38,790 12,318 Other . . . . . . . . - 57 4 162 Total Life. . . . . . 48,571 48,722 189,572 150,564 -------- -------- -------- -------- Total US Revenues. . . $102,799 $123,974 $468,607 $429,396 ======== ======== ======== ======== INTERNATIONAL ILC. . . . . . . . . . $ 3,783 $ 5,477 $ 19,122 $ 19,792 MLC. . . . . . . . . . 5,418 3,956 19,679 16,475 Professional Svcs/ITO. 28,199 36,792 134,517 139,231 BPO. . . . . . . . . . 886 - 1,452 - Other. . . . . . . . . 265 646 642 2,564 Total International. . 38,551 46,871 175,412 178,062 -------- -------- -------- -------- TOTAL REVENUES. . . . . $141,350 $170,845 $644,019 $607,458 ======== ======== ======== ======== TOTAL COMPANY ILC. . . . . . . . . . $ 8,686 $ 27,377 $ 72,184 $ 67,666 MLC. . . . . . . . . . 17,406 16,743 69,755 66,148 Professional Svcs/ITO. 87,634 109,549 413,338 419,970 BPO. . . . . . . . . . 26,989 16,380 85,338 48,901 Other. . . . . . . . . 635 796 3,404 4,773 -------- -------- -------- -------- TOTAL REVENUES. . . . . $141,350 $170,845 $644,019 $607,458 ======== ======== ======== ======== Note: Certain prior period amounts have been reclassified for purposes of comparison.
POLICY MANAGEMENT SYSTEMS CORPORATION SUPPLEMENTARY SCHEDULE OF SEGMENT RESULTS BEFORE SPECIAL CHARGES AND ACCOUNTING CHANGES (Unaudited) (Not prepared in accordance with Generally Accepted Accounting Principles) Three Months Twelve Months Ended December 31, Ended December 31, 1999 1998 1999 1998 - --------------------------------------------------------------------- (In Thousands) REVENUES Enterprise Software and Services Property & Casualty $ 61,039 $ 75,252 $285,846 $278,832 Life 48,571 48,722 189,572 150,564 -------- -------- -------- -------- Total US revenues 109,610 123,974 475,418 429,396 International 44,866 46,871 181,727 178,062 -------- -------- -------- -------- Total revenues $154,476 $170,845 $657,145 $607,458 ======== ======== ======== ======== Discontinued Operations Life Information Services $ - $ - $ - $ 11,968 OPERATING (LOSS) INCOME Enterprise Software and Services Property & Casualty $ 2,766 $ 22,849 $64,322 $ 78,138 Life 2,329 13,578 30,404 37,627 Corporate and US administrative (12,291) (6,488) (36,882) (26,434) -------- -------- ------- -------- Total US (7,196) 29,939 57,844 89,331 -------- -------- ------- -------- International 1,131 3,877 10,802 19,981 International administrative (2,121) (2,443) (7,714) (8,555) -------- -------- -------- -------- Total international (990) 1,434 3,088 11,426 --------- -------- ------- -------- Total operating (loss) income $(8,186) $ 31,373 $60,932 $100,757 ========= ========= ======== ======== Discontinued Operations Information Services Property & Casualty $ - $ 568 $ - $ (1,586) Life - - - 3,672 OPERATING (LOSS) INCOME AS PERCENTAGE OF REVENUE Enterprise Software and Services Property & Casualty 4.6 % 30.4 % 22.5 % 28.0 % Life 4.8 27.9 16.0 25.0 Total US (6.6) 24.1 12.2 20.8 International Software and services 2.6 8.3 6.0 11.2 Total international (2.3) 3.1 1.7 6.4 Total (5.4)% 18.4 % 9.3 % 16.6 % Note: Certain prior period amounts have been reclassified for purposes of comparison. -----END PRIVACY-ENHANCED MESSAGE-----