UNITED
STATES
SECURITIES
AND EXCHANGE COMMISSION
Washington,
D.C. 20549
FORM
8-K
CURRENT
REPORT PURSUANT TO SECTION 13 or 15(d)
OF
THE SECURITIES EXCHANGE ACT OF 1934
Date
of Report (date of earliest event reported):
October
23, 2007
Euronet
Worldwide, Inc.
(Exact
name of registrant as specified in its charter)
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Delaware
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001-31648
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74-2806888
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(State
or other jurisdiction of incorporation)
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(Commission
File Number)
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(IRS
Employer ID Number)
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4601
College Boulevard, Suite 300
Leawood,
Kansas
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66211
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(Address
of principal executive offices)
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(Zip
Code)
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Registrant’s
Telephone Number, including area code: (913) 327-4200
N/A
(Former
name or former address, if changed since last report)
Check
the
appropriate box below if the Form 8-K filing is intended to simultaneously
satisfy the filing obligation of the registrant under any of the following
provisions:
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¨
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Written
communications pursuant to Rule 425 under the Securities Act (17
CFR
230.425)
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¨
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Soliciting
material pursuant to Rule 14a-12 under the Exchange Act (17 CFR
240.14a-12)
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¨
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Pre-commencement
communications pursuant to Rule 14d-2(b) under the Exchange Act
(17 CFR
240.14d-2(b))
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¨
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Pre-commencement
communications pursuant to Rule 13e-4(c) under the Exchange Act
(17 CFR
240.13e-4(c))
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ITEM
2.02. Results of Operations and Financial Condition.
On
October
23, 2007, Euronet Worldwide, Inc. issued a press release to announce its
financial results for the third quarter ended September 30, 2007. The press
release is attached hereto as Exhibit 99.1.
The
information in this Current Report, including without limitation Exhibit
99.1,
is being furnished and shall not be deemed “filed” for the purposes of Section
18 of the Securities Exchange Act of 1934, or otherwise subject to the
liabilities of that Section, and shall not be incorporated by reference into
any
registration statement or other document filed pursuant to the Securities
Act of
1933, except as shall be expressly set forth by specific reference in such
a
filing.
ITEM
9.01. Financial Statements and Exhibits.
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(c)
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Exhibits
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Exhibit
99.1 - Press Release dated October 23,
2007
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SIGNATURES
Pursuant
to the requirements of the Securities Exchange Act of 1934, the registrant
has
duly caused this report to be signed on its behalf by the undersigned hereunto
duly authorized.
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Euronet
Worldwide, Inc.
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By:
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/s/ Rick
L. Weller
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Rick
L. Weller
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Chief
Financial Officer
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Date:
October 23, 2007
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Exhibit
99.1
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N
e w s R e l e a s e
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|||
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Corporate
Headquarters
4601
College Boulevard, Suite 300
Leawood,
Kansas 66211 USA
+1-913-327-4200
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For
Immediate Release
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Date:
October 23, 2007
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||
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Media
and Investor
Relations
Contact:
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Shruthi
Dyapaiah-Fielder
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1-913-327-4225
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sdyapaiah@euronetworldwide.com
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Euronet
Worldwide Reports Third Quarter 2007 Financial Results
LEAWOOD,
KANSAS, USA — October 23, 2007 — Euronet Worldwide Inc. (NASDAQ: EEFT),
a leading electronic payments provider, today announced its third quarter
2007
financial results.
Euronet’s
third quarter 2007 financial highlights included:
|
·
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Consolidated
revenues of $246.3 million, compared to $161.7 million for the
third
quarter 2006.
|
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·
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Adjusted
EBITDA of $34.4 million, compared to $22.5 million for the third
quarter
2006.
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·
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Operating
income of $16.8 million, compared to $13.1 million for the third
quarter
2006.
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·
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Net
income of $14.8 million, or $0.29 diluted earnings per share, compared
to
net income of $10.4 million, or $0.26 diluted earnings per share,
for the
third quarter 2006.
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·
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Diluted
cash earnings per share of $0.32, compared to $0.31 for the third
quarter
2006 (see reconciliation of diluted cash earnings per share in
the
attached schedules.)
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·
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Transactions
of 322.9 million, compared to 241.0 million for the third quarter
2006.
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A
significant factor in comparing Euronet’s third quarter 2007 results with third
quarter 2006 results was its acquisition on April 4, 2007 of Ria Envia Inc.
(“RIA”), the third-largest global money transfer company. Commencing in the
second quarter, Euronet included the results of RIA in its consolidated
financial statements, together with the related equity and debt issued to
complete the acquisition. RIA’s operating results are reported in the Money
Transfer Segment.
Segment
and Other Results
As
stated
above, beginning in the second quarter 2007, Euronet reported the results
of RIA
as a separate business segment, the ‘Money Transfer Segment.’ This
segment also includes the company’s pre-existing money transfer business, which
was previously included in the Prepaid Processing Segment. The
Segment results reported below have been restated for prior periods to reflect
the pre-existing money transfer business in the Money Transfer Segment and
the
combination of the EFT Processing and Software segments for comparative
purposes. These restatements were for comparative purposes only and had no
impact on Euronet’s consolidated results.
The
EFT Processing Segment reported the following results for the third
quarter 2007:
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·
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Revenues
of $48.1 million, compared to $40.5 million for the third quarter
2006.
|
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·
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Adjusted
EBITDA of $14.9 million, compared to $12.9 million for the third
quarter
2006.
|
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·
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Operating
income of $10.3 million, compared to $9.2 million for the third
quarter
2006.
|
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·
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Transactions
of 156.5 million, compared to 119.1 million for the third quarter
2006.
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The
EFT
Processing Segment completed the quarter with 10,516 ATMs owned or operated
compared to 8,491 ATMs at the end of the third quarter 2006. The year-over-year
improvements in revenue, operating income and Adjusted EBITDA were primarily
attributable to this 24% increase in ATMs under management together with
the
related transactions processed over those and other ATMs under
management. Expansion over the prior year of the EFT Processing
Segment’s adjusted EBITDA and operating income was partially offset by continued
investments the Company has made to position itself for expanding card
processing opportunities across Europe, investments to expand in additional
Eastern European markets and the effect of certain rate concessions granted
by
the Company in prior periods to extend contracts through 2011.
1
Euronet
owns and/or operates ATMs in Hungary, Poland, Germany, Croatia, the Czech
Republic, the United Kingdom, Greece, Romania, Slovakia, Albania, Serbia,
Montenegro, Ukraine, Bulgaria, India and China.
The
Prepaid Processing Segment reported the following results for the third
quarter 2007:
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·
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Revenues
of $144.6 million, compared to $120.3 million for the third quarter
2006.
|
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·
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Adjusted
EBITDA of $14.7 million, compared to $13.2 million for the third
quarter
2006.
|
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·
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Operating
income of $8.7 million, compared to $9.6 million for the third
quarter
2006.
|
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·
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Transactions
of 162.5 million, compared to 121.8 million in the third quarter
2006.
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The
year-over-year improvement in revenue was primarily attributable to organic
transaction growth as well as the benefit from the first quarter 2007
acquisition of a U.K. based prepaid processing company that contributed
approximately half of the segment’s revenue growth. Adjusted EBITDA margins
improved consistent with revenue growth. Adjusted EBITDA and operating margins,
excluding the adjustment discussed below, expanded compared to the second
quarter 2007.
With
regard to operating income, in the third quarter, an adjustment of $1.7 million,
of which of $1.5 million related to prior periods, was recorded for additional
intangible asset amortization related to certain acquisitions completed prior
to
2007. The adjustment resulted from a determination that the functional currency
for certain acquired intangible assets and goodwill should be the local currency
rather than the U.S. dollar, which consequently increased the dollar
denominated amount of goodwill and other intangible assets associated with
those
acquisitions. As a result of this adjustment, goodwill and other intangible
assets were increased by approximately $22 million and $3 million, respectively.
The adjustment was determined to be immaterial and did not impact cash flows
of
the Prepaid Segment or the Company.
The
Prepaid Processing Segment processes electronic point-of-sale prepaid
transactions at approximately 370,000 point-of-sale terminals across more
than
189,000 retailer locations in Europe, Asia Pacific, Africa and the
U.S.
The
Money Transfer Segment reported the following results for the third
quarter 2007:
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·
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Revenues
of $53.6 million, compared to $0.9 million for the third quarter
2006.
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·
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Adjusted
EBITDA of $7.6 million, compared to negative ($0.7) million for
the third
quarter 2006.
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·
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Operating
income of $3.4 million, compared to negative ($0.8) million for
the third
quarter 2006.
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·
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Transactions
of 4.0 million, compared to 0.1 million in the third quarter
2006.
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RIA
was
acquired in the second quarter of 2007 and, accordingly, the year-over-year
changes may be more meaningful viewed on a proforma basis. When compared
on a
proforma basis, the 15% year-over-year improvement in transfers was largely
the
result of an increase of approximately 70% in transfers from non-US locations
together with a slight year-over-year improvement in transfers to Mexico.
The
improving trend in the Mexican corridor transfers continued in the third
quarter
with a year-over-year growth rate of approximately 0.5% as compared to a
year-over-year decline of 1.5% in the second quarter and a 4.2% year-over-year
decline in the first quarter. The increase in transactions from non-US locations
was instrumental to the Segment’s proforma 14% growth in revenues, 15% increase
in Adjusted EBITDA and 48% increase in operating income when compared to
the
same period last year.
“The
third
quarter for the Money Transfer business affirms our view as to why we
acquired RIA - great international growth prospects and the ability to leverage
expandable profit margins through incremental volumes,” said Michael J. Brown,
chairman and chief executive office, Euronet Worldwide Inc. “We continue to
integrate the RIA business with Euronet’s EFT and Prepaid Segments and are more
encouraged than ever by the opportunities they offer.”
Corporate
and Other had $5.6 million of operating expenses for the third quarter
2007, compared to $4.9 million
in the third quarter 2006. The increase was largely driven by stock-based
compensation charges.
2
Euronet’s
interest expense for the third quarter 2007 was $7.6 million compared to
$3.9
million in the third quarter of 2006; total indebtedness was $524.9 million
as
of September 30, 2007 as compared to $349.7 million as of September 30, 2006.
The increase in interest expense and related debt over the prior year resulted
from the Company’s acquisition of RIA. The Company reduced its total
indebtedness by more than $40 million during the quarter, $25 million of
which was RIA acquisition debt. The Company’s unrestricted cash on
hand was $251.4 million as of September 30, 2007 as compared to $282.3 million
as of June 30, 2007.
During
the
third quarter 2007, Euronet recorded tax expense of $6.1 million which compares
to $3.6 million in the third quarter of 2006. Of these amounts, the
Company recorded $2.4 million of non-cash deferred income tax expense in
the
third quarter 2007, compared to $0.2 million in the third quarter of 2006,
related to tax-deductible goodwill arising from the treatment of certain
business combinations as asset purchases in the U.S. Goodwill derived
from these acquisitions is amortized over 15 years for U.S. tax purposes
but not for financial reporting purposes. Accordingly, the Company is required
to record deferred income tax expense and a deferred tax liability for the
tax
effect of the amortization expense deducted for U.S. tax
purposes. Consistent with the associated goodwill, the deferred
tax liability is deemed to have an indefinite life and will remain on Euronet’s
balance sheet unless there is an impairment of goodwill for financial reporting
purposes or the related business entity is disposed. Statement on Financial
Accounting Standards No. 109, “Accounting for Income Taxes,” does not allow the
deferred income tax expense and related deferred tax liability to be offset
by
the tax benefit generated from tax assets with definite lives when the Company
has significant unrecognized tax net operating losses. Due to the non-cash
nature of this deferred income tax expense related to intangible amortization,
Euronet has excluded this expense from the calculation of its cash-based
earnings per share. The remaining increase is largely attributable to the
taxation of profit growth in Euronet’s EFT Processing and Prepaid Processing
Segments and the inclusion of tax expense associated with the acquired Money
Transfer operations located in certain international markets.
Euronet
also announced that it expects diluted cash earnings per share for the fourth
quarter 2007 to be $0.34 to $0.35 per share.
We
believe
that adjusted EBITDA and cash earnings per share provide useful information
to
investors because they are indicators of the strength and performance of
our
ongoing business operations, including our ability to fund capital expenditures,
acquisitions and operations and to incur and service debt. These
calculations are commonly used as a basis for investors, analysts and credit
rating agencies to evaluate and compare the operating performance and value
of
companies within the payment processing industry.
The
Company’s management analyzes historical results adjusted for certain items that
are non-operational, not necessarily ongoing in nature or that are incremental
to the baseline of the business, and management believes the exclusion of
these
items provides a more complete basis for evaluating the underlying business
unit
performance.
Adjusted
EBITDA is defined as operating income excluding depreciation,
amortization and share-based compensation expenses. While
depreciation and amortization are considered operating costs under generally
accepted accounting principles, these expenses primarily represent a non-cash
current period allocation of costs associated with long-lived assets acquired
in
prior periods. Similarly, the expense recorded for share-based
compensation does not represent a current or future period cash
cost.
Diluted
cash earnings per share is defined as diluted GAAP earnings per share
excluding the impacts of a) foreign exchange gains or losses, b) discontinued
operations, c) debt restructuring or early debt retirement charges, d)
tax-effected share based compensation, e) tax-effected intangible asset
amortization and f) other non-operating or unusual items that cannot be
accurately projected.
The
attached schedules provide a full reconciliation of these and other non-GAAP
financial measures to a corresponding GAAP financial measure.
Euronet
Worldwide will host an analyst conference call on Wednesday, October 24,
2007,
at 9:00 a.m. U.S. Eastern Time to discuss these results. The conference call
will be broadcast on the Internet and can be accessed via the Euronet Worldwide
Internet site at www.euronetworldwide.com or via Vcall at
http://www.vcall.com/IC/CEPage.asp?ID=121784. For those without Internet
access, the conference call-in number is +1-877-407-9210 (USA) or
+1-201-689-8049 (non-USA).
3
For
those
unable to attend the live broadcast, a replay will be available beginning
approximately one hour after the event at
http://www.vcall.com/IC/CEPage.asp?ID=121784 as well as via phone. To
dial in for the replay, the call-in number is +1-877-660-6853 (USA) or
+1-201-612-7415 (non-USA). The account number is 286 and the conference ID
number is 257643. The call and webcast replay will be available for one month.
No fees are charged to access any event.
About
Euronet Worldwide
Euronet
Worldwide is an industry leader in processing secure electronic financial
transactions. The Company offers payment and transaction processing solutions
to
financial institutions, mobile operators and retailers which include
comprehensive ATM and POS operation and management services; credit and debit
card outsourcing services; card issuing and merchant acquiring services;
software solutions; consumer money transfer and bill payment services; and
electronic distribution of top-up services for prepaid mobile airtime and
other
prepaid products. Euronet operates and processes transactions from 39
countries.
Euronet’s
global payment network is extensive – including over 10,500 ATMs and
approximately 48,000 POS terminals which are under management in 16 countries;
a
growing portfolio of outsourced debit and credit card services and card software
solutions; a prepaid processing network of 370,000 point-of-sale terminals
across 189,000 retailer locations in 12 countries; and a consumer-to-consumer
money transfer network of over 11,000 sending locations in 13 countries and
more
than 56,000 payout locations in approximately 100 countries. With corporate
headquarters in Leawood, Kansas, USA, and 35 worldwide offices, Euronet serves
clients in approximately 130 countries. For more information, please visit
the
Company’s Web site at www.euronetworldwide.com.
Statements
contained in this news release that concern Euronet’s or its management's
intentions, expectations, or predictions of future performance, are
forward-looking statements. Euronet's actual results may vary materially
from
those anticipated in such forward-looking statements as a result of a number
of
factors, including: technological developments affecting the market for the
Company’s products and services; foreign exchange fluctuations; and changes in
laws and regulations affecting the Company's business. These risks and other
risks are described in the Company’s filings with the Securities and Exchange
Commission, including our Annual Report on Form 10-K, Quarterly Reports on
Form
10-Q and Current Reports on Form 8-K. Copies of these filings may be obtained
by
contacting the Company or the SEC.Euronet does not intend to update
these forward-looking statements and undertakes no duty to any person to
provide
any such update under any circumstances.
4
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EURONET
WORLDWIDE, INC.
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||||||||
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Consolidated
Statements of Income
|
||||||||
|
(unaudited
- in millions, except share and per share data)
|
||||||||
|
Three
Months Ended
|
||||||||
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September
30,
|
||||||||
|
2007
|
2006
|
|||||||
|
Revenues:
|
||||||||
|
EFT
Processing
|
$ |
48.1
|
$ |
40.5
|
||||
|
Prepaid
Processing
|
144.6
|
120.3
|
||||||
|
Money
Transfer
|
53.6
|
0.9
|
||||||
|
Total
revenues
|
246.3
|
161.7
|
||||||
|
Operating
expenses:
|
||||||||
|
Direct
operating costs
|
165.1
|
112.5
|
||||||
|
Salaries
and benefits
|
32.4
|
18.7
|
||||||
|
Selling,
general and administrative
|
16.8
|
10.0
|
||||||
|
Depreciation
and amortization
|
15.2
|
7.4
|
||||||
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Total
operating expenses
|
229.5
|
148.6
|
||||||
|
Operating
income
|
16.8
|
13.1
|
||||||
|
Other
income (expense):
|
||||||||
|
Interest
income
|
4.1
|
3.7
|
||||||
|
Interest
expense
|
(7.6 | ) | (3.9 | ) | ||||
|
Income
from unconsolidated affiliates
|
-
|
0.2
|
||||||
|
Loss
on early retirement of debt
|
(0.4 | ) |
-
|
|||||
|
Foreign
exchange gain, net
|
8.6
|
1.1
|
||||||
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Total
other income
|
4.7
|
1.1
|
||||||
|
Income
before income taxes and minority interest
|
21.5
|
14.2
|
||||||
|
Income
tax expense
|
(6.1 | ) | (3.6 | ) | ||||
|
Minority
interest
|
(0.6 | ) | (0.2 | ) | ||||
|
Net
income
|
$ |
14.8
|
$ |
10.4
|
||||
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Earnings
per share - diluted:
|
||||||||
|
Earnings
per Share
|
$ |
0.29
|
$ |
0.26
|
||||
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Diluted
weighted average shares outstanding
|
54,439,296
|
42,525,511
|
||||||
5
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EURONET
WORLDWIDE, INC.
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||||||||
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Consolidated
Summary Balance Sheets
|
||||||||
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(in
millions)
|
||||||||
|
As
of
|
||||||||
|
September
30,
|
As
of
|
|||||||
|
2007
|
December
31,
|
|||||||
|
(unaudited)
|
2006
|
|||||||
|
ASSETS
|
||||||||
|
Current
assets:
|
||||||||
|
Cash
and cash equivalents
|
$ |
251.4
|
$ |
321.1
|
||||
|
Restricted
cash
|
107.5
|
80.7
|
||||||
|
Inventory
- PINs and other
|
41.1
|
49.5
|
||||||
|
Trade
accounts receivable, net
|
312.1
|
212.6
|
||||||
|
Other
current assets, net
|
53.4
|
24.6
|
||||||
|
Total
current assets
|
765.5
|
688.5
|
||||||
|
Property
and equipment, net
|
76.9
|
55.2
|
||||||
|
Goodwill
and intangible assets, net
|
918.2
|
326.2
|
||||||
|
Other
assets, net
|
44.3
|
38.2
|
||||||
|
Total
assets
|
$ |
1,804.9
|
$ |
1,108.1
|
||||
|
LIABILITIES
AND STOCKHOLDERS' EQUITY
|
||||||||
|
Current
liabilities:
|
||||||||
|
Accounts
payable and other current liabilities
|
$ |
500.7
|
$ |
393.1
|
||||
|
Short-term
debt obligations
|
11.0
|
11.0
|
||||||
|
Total
current liabilities
|
511.7
|
404.1
|
||||||
|
Debt
obligations, net of current portion
|
501.6
|
349.1
|
||||||
|
Capital
lease obligations, net of current portion
|
12.3
|
13.4
|
||||||
|
Deferred
income tax
|
75.8
|
43.1
|
||||||
|
Other
long-term liabilities
|
2.6
|
1.8
|
||||||
|
Minority
interest
|
9.2
|
8.3
|
||||||
|
Total
liabilities
|
1,113.2
|
819.8
|
||||||
|
Stockholders'
equity
|
691.7
|
288.3
|
||||||
|
Total
liabilities and stockholders' equity
|
$ |
1,804.9
|
$ |
1,108.1
|
||||
6
|
EURONET
WORLDWIDE, INC.
|
||||||||||||||||
|
Reconciliation
of Operating Income to Adjusted EBITDA by Segment
|
||||||||||||||||
|
(unaudited
- in millions)
|
||||||||||||||||
|
Three
Months Ended September 30, 2007
|
||||||||||||||||
|
EFT
|
Prepaid
|
Money
|
||||||||||||||
|
Processing
|
Processing
|
Transfer
|
Consolidated
|
|||||||||||||
|
Operating
Income
|
$ |
10.3
|
$ |
8.7
|
$ |
3.4
|
$ |
16.8
|
||||||||
|
Add:
Depreciation and amortization
|
4.6
|
6.0
|
4.2
|
15.2
|
||||||||||||
|
Add:
Share-based compensation
|
-
|
-
|
-
|
2.4
|
||||||||||||
|
Earnings
before interest, taxes, depreciation,
|
||||||||||||||||
|
amortization
and share-based
|
||||||||||||||||
|
compensation
(Adjusted EBITDA)
|
$ |
14.9
|
$ |
14.7
|
$ |
7.6
|
$ |
34.4
|
||||||||
|
Three
Months Ended September 30, 2006
|
||||||||||||||||
|
EFT
|
Prepaid
|
Money
|
||||||||||||||
|
Processing
|
Processing
|
Transfer
|
Consolidated
|
|||||||||||||
|
Operating
Income
|
$ |
9.2
|
$ |
9.6
|
$ | (0.8 | ) | $ |
13.1
|
|||||||
|
Add:
Depreciation and amortization
|
3.7
|
3.5
|
0.1
|
7.4
|
||||||||||||
|
Add:
Share-based compensation
|
-
|
0.1
|
-
|
2.0
|
||||||||||||
|
Earnings
before interest, taxes, depreciation,
|
||||||||||||||||
|
amortization
and share-based
|
||||||||||||||||
|
compensation
(Adjusted EBITDA)
|
$ |
12.9
|
$ |
13.2
|
$ | (0.7 | ) | $ |
22.5
|
|||||||
7
|
EURONET
WORLDWIDE, INC.
|
||||||||||||
|
Reconciliation
of Money Transfer Segment Results
|
||||||||||||
|
to
Pro Forma Money Transfer Segment Results
|
||||||||||||
|
Three
Months Ended September 30, 2006
|
||||||||||||
|
(unaudited
- in millions)
|
||||||||||||
|
Total
|
Adjusted
|
Operating
|
||||||||||
|
Revenues
|
EBITDA
|
Income
|
||||||||||
|
Money
Transfer Segment
|
$ |
0.9
|
$ | (0.7 | ) | $ | (0.8 | ) | ||||
|
Add:
Pro forma adjustments
|
46.3
|
7.3
|
3.1
|
|||||||||
|
Pro
Forma Money Transfer Segment
|
$ |
47.2
|
$ |
6.6
|
$ |
2.3
|
||||||
8
|
EURONET
WORLDWIDE, INC.
|
|||||||||||
|
Reconciliation
of Diluted Cash Earnings per Share
|
|||||||||||
|
(unaudited
- in millions, except share and per share
data)
|
|||||||||||
|
Three
Months Ended
|
|||||||||||
|
September
30,
|
|||||||||||
|
2007
|
2006
|
||||||||||
|
Net
income
|
$ |
14.8
|
$ |
10.4
|
|||||||
|
Amortization
of convertible debt issuance costs
|
0.2
|
(1) |
0.2
|
(1) | |||||||
|
Interest
on convertible debt
|
0.6
|
(1) |
0.6
|
(1) | |||||||
|
Earnings
applicable for common shareholders
|
15.6
|
11.2
|
|||||||||
|
Loss
on early debt retirement
|
0.4
|
-
|
|||||||||
|
Foreign
exchange gain
|
(8.6 | ) | (1.1 | ) | |||||||
|
Share-based
compensation, net of tax of $0.0 in 2007 and $0.1 in 2006
|
2.4
|
1.9
|
|||||||||
|
Intangible
asset amortization, net of tax of negative ($0.3) in 2007 and $0.6
in 2006
(3)
|
8.0
|
1.6
|
|||||||||
|
Earnings
applicable for common shareholders before
|
|||||||||||
|
foreign
exchange gains/losses and share-based compensation
|
$ |
17.8
|
$ |
13.6
|
|||||||
|
Cash
earnings per share - diluted (2)
|
$ |
0.32
|
$ |
0.31
|
|||||||
|
Diluted
weighted average shares outstanding (1)
|
54,439,296
|
42,525,511
|
|||||||||
|
Effect
of unrecognized share-based compensation on diluted shares
outstanding
|
1,144,223
|
873,176
|
|||||||||
|
Adjusted
diluted weighted average shares outstanding
|
55,583,519
|
43,398,687
|
|||||||||
(1) As
required by GAAP, the interest cost and amortization of the convertible debt
issuance cost are excluded from income for the purpose
of
calculating diluted earnings per share for any period when the convertible
debentures, if converted, would be dilutive to
earnings per share. Further, the convertible shares are treated as if all
were outstanding for the period. The Company's 1.625% convertible
debentures were dilutive to the Company's diluted cash
earnings
per share for the second quarter 2007 and for the second quarter
2006.
(2) Diluted
Cash Earnings per Share is a non-GAAP measure that should be considered
in
addition to, and not as a substitute for, earnings per share computed in
accordance with GAAP.
(3) Includes
a cumulative adjustment for additional intangible asset amortization
related to
certain acquisitions completed prior to 2007.
9