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):
April
25, 2006
Euronet
Worldwide, Inc.
(Exact
name of registrant as specified in its charter)
|
Delaware
|
|
000-31648
|
|
74-2806888
|
|
(State
or other jurisdiction
of
incorporation)
|
|
(Commission
File Number)
|
|
(IRS
Employer
ID
Number)
|
|
4601
College Boulevard, Suite 300
Leawood,
Kansas
|
|
66211
|
|
(Address
of principal executive offices)
|
|
(Zip
Code)
|
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:
|
¨
|
Written
communications pursuant to Rule 425 under the Securities Act (17
CFR
230.425)
|
|
¨
|
Soliciting
material pursuant to Rule 14a-12 under the Exchange Act (17 CFR
240.14a-12)
|
|
¨
|
Pre-commencement
communications pursuant to Rule 14d-2(b) under the Exchange Act (17
CFR
240.14d-2(b))
|
|
¨
|
Pre-commencement
communications pursuant to Rule 13e-4(c) under the Exchange Act (17
CFR
240.13e-4(c))
|
ITEM
2.02. Results of Operations and Financial Condition
On
April
25, 2006, Euronet Worldwide, Inc. issued a press release to announce its
financial results for the first quarter ended March 31, 2006. 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. The information in this Current Report 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
|
|
(c)
|
Exhibits
|
|
Exhibit
99.1 - Press Release dated April 25,
2006
|
2
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.
|
|
||
| Euronet Worldwide, Inc. | ||
|
|
By:
|
/S/
Rick L. Weller
|
|
|
|
Rick
L. Weller
|
|
|
|
Chief
Financial Officer
|
Date:
April 25, 2006
3
 |
News
Release
|
|||
|
For
Immediate Release
|
Date:
April 25, 2006
|
|||
|
Media
Contact:
Investor
Relations (US):
|
Shruthi
Dyapaiah
IR
Dept
|
1-913-327-4225
1-913-327-4200
|
sdyapaiah@euronetworldwide.com
investor@euronetworldwide.com
|
|
Euronet
Worldwide Reports First Quarter 2006 Financial Results
LEAWOOD,
KANSAS, USA—April 25, 2006—Euronet
Worldwide, Inc. (NASDAQ: EEFT), a leading electronic payments provider,
today
announced its first quarter 2006 financial results.
Euronet’s
first quarter 2006 financial highlights included:
|
·
|
Consolidated
revenues of $147.0 million, compared to $117.2 million for the
first
quarter 2005.
|
|
·
|
Adjusted
EBITDA of $21.0 million, compared to $16.8 million for the first
quarter
2005.
|
|
·
|
Operating
income of $12.3 million, compared to $10.5 million for the first
quarter
2005.
|
|
·
|
Net
income of $9.4 million, or $0.24 diluted earnings per share,
compared to
net income for the first quarter 2005 of $3.6 million, or $0.10
per share.
|
|
·
|
In
accordance with Statement of Financial Accounting Standards No.
123R
(“SFAS 123R”), which the Company retroactively adopted on January 1, 2006,
share-based compensation expense was $1.9 million, compared to
$1.3
million for the first quarter 2005.
|
|
·
|
The
first quarter 2006 net income included a foreign exchange gain
of $1.6
million. Excluding this gain and the share-based compensation
expense
noted above, diluted earnings per share were
$0.25, or $10.5 million,
for the first quarter 2006. The first quarter 2005 net income
included a
foreign exchange loss of $2.8 million; excluding this loss and
the
share-based compensation expense noted above, diluted earnings
per share
were $0.21, or $7.8 million.
|
Segment
Results and Other
The
EFT Processing Segment
reported
the following results:
|
·
|
First
quarter 2006 revenues of $29.9 million, compared to $23.9 million
for the
first quarter 2005.
|
|
·
|
First
quarter 2006 Adjusted EBITDA of $10.4 million, compared to $8.1
million
for the first quarter 2005.
|
|
·
|
First
quarter 2006 operating income of $7.4 million, compared to $5.6
million
for the first quarter 2005.
|
|
·
|
Transactions
processed in the first quarter 2006 were 103.1 million, compared
to 77.3
million transactions in the same period last
year.
|
The
year-over-year increases in revenue, operating income and Adjusted EBITDA
were
primarily attributable to a 23% increase in ATMs under management and the
inclusion of Euronet Card Services Greece (formerly Instreamline), which
was
acquired in the fourth quarter 2005, and the inclusion of the Serbian business,
where on December 31, 2005 the Company increased its ownership from a less
than
wholly-owned to a wholly-owned position.
The
EFT
Segment completed the quarter with 7,613 ATMs owned or operated, including
50
ATMs Euronet installed in China - its newest market, compared to 6,201
ATMs at
the end of the first quarter 2005. Euronet owns and/or operates ATMs in
Hungary,
Poland, Germany, Croatia, the Czech Republic, U.K., Greece, Romania, Slovakia,
Albania, Serbia & Montenegro, India and China.
The
Prepaid Processing Segment
reported
the following results:
|
·
|
First
quarter 2006 revenues of $111.0 million, compared to the $89.4
million
reported for the first quarter 2005.
|
|
·
|
First
quarter 2006 Adjusted EBITDA of $12.3 million, compared to $10.1
million
reported in the first quarter 2005.
|
|
·
|
First
quarter 2006 operating income of $9.0 million, compared to $7.8
million
for the first quarter 2005.
|
|
·
|
Transactions
processed in the first quarter 2006 were 96.4 million, compared
to 67.2
million transactions in the first quarter
2005.
|
The
Segment’s first quarter’s year-over-year transactions and revenue improvements
were the result of a continuation of transaction growth together with benefits
of acquisitions completed during and after the first quarter 2005. The
improvements in quarterly Adjusted EBITDA and operating income were generally
correlated to the increases in revenues after considering the inclusion in
the
first quarter 2006 of approximately $0.6 million in net operating losses
of the
money transfer and bill payment business.
The
Prepaid Processing Segment processes electronic point-of-sale prepaid
transactions at more than 242,000 point-of-sale terminals across more than
134,000 retailer locations in Europe, Asia Pacific, Africa and the U.S. As
previously announced, the Company intends to expand its Prepaid Processing
Segment both domestically and internationally through internal sales and
promotional efforts as well as, if appropriate, acquisitions.
The
Software Solutions Segment
reported
the following results:
|
·
|
First
quarter 2006 revenues of $6.1 million, compared to the $3.9 million
reported for the first quarter
2005.
|
|
·
|
First
quarter 2006 Adjusted EBITDA of $0.8 million compared to the $1.2
million
reported for the first quarter
2005.
|
|
·
|
First
quarter 2006 operating income of $0.4 million compared to the $0.9
million
reported for the first quarter
2005.
|
The
change
in results year-over-year was primarily due to the acquisition of Essentis
in
early January 2006.
Corporate
and Other had
$4.4
million of operating expenses for the first quarter 2006, compared to $3.8
million in the first quarter 2005. Share-based compensation expense, as required
by the adoption of SFAS 123R, was included in Corporate and Other and amounted
to $1.9 million for the first quarter of 2006, compared to $1.3 million in
the
first quarter 2005. All other expenses were $2.5 million for first quarter
2006,
compared to $2.5 million in the first quarter 2005. The quarter-over-quarter
increase in share-based compensation is due to awards to employees of companies
acquired during and since the first quarter of 2005 and the required use
of more
accelerated expensing for performance-based awards.
Combining
all segments, transactions processed in the first quarter 2006 were 199.5
million compared to 144.5 million processed in the first quarter 2005, a
38%
increase. These increases were primarily due to the full year impact of the
EFT
Processing Segment’s implementation of ATM outsourcing agreements, continued
growth and acquisitions.
The
Company’s unrestricted cash on hand was $223.7 million as of March 31, 2006 as
compared to $219.9 million at December 31, 2005. Euronet’s total indebtedness
was $355.2 million as of March 31, 2006, compared to $355.6 million at December
31, 2005.
The
Company commenced accounting for share-based compensation in accordance with
Statement of Financial Accounting Standards No. 123R (“SFAS 123R”) on January 1,
2006. The Company adopted the “modified retrospective application” method and,
accordingly, all prior periods have been restated.
Euronet
also announced that it expects earnings per share for the second quarter
2006 to
be approximately $0.26, excluding the effects of foreign exchange gains or
losses, discontinued operations, share-based compensation charges, and/or
other
non-operating or unusual items that cannot be accurately projected.
In
December 2004 and October 2005, the Company issued $140 million and $175
million, respectively, in convertible debentures. These debentures are
potentially convertible into approximately 4.2 million and 4.3 million shares,
respectively, of the Company’s common stock, subject to adjustment. As required
by EITF 04-8, “The Effect of Contingently Convertible Debt on Diluted Earnings
per Share,” regardless of whether the conditions upon which the debentures would
be convertible into shares of the Company’s common stock have been met, if
dilutive, the impact of the contingently issuable shares is included in the
calculation of diluted earnings per share under the “if converted” method. As in
the fourth quarter 2005, the assumed conversion of the 1.625% 2004 debentures
was dilutive for the first quarter 2006 and the assumed conversion of the
October 2005 debentures was not dilutive. Accordingly, for the first quarter
2006, 4.2 million contingently issuable shares have been assumed to be
outstanding for the period and $0.8 million in related interest charges and
amortization of debt issuance costs have been excluded from income available
to
common shareholders to determine diluted earnings per share. The Company
expects
the 1.625% 2004 debentures to continue to be dilutive in future periods;
the
impact of the 3.50% 2005 debentures on future earnings per share may be dilutive
if earnings per share continue to increase.
We
believe
that Adjusted EBITDA provides useful information to investors because it
is an
indicator 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. While depreciation and amortization are
considered operating costs under generally accepted accounting principles,
these
expenses primarily represent 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. Adjusted EBITDA, defined as operating income excluding
the costs of depreciation, amortization and share-based compensation, is
a
calculation commonly used as a basis for investors, analysts and credit rating
agencies to evaluate and compare the periodic and future operating performance
and value of companies within the payment processing industry. Management
analyzes historical results adjusted for certain items that are non-operational
or not necessarily ongoing in nature and that are incremental to the baseline
of
the business. Generally, these items include gains or losses associated with
the
sale of business assets or operations, market development costs, foreign
exchange translations, discontinued operations, early debt retirement and
other
similar items as discussed in this press release; management believes the
exclusion of these items provides a better basis for evaluating the underlying
business unit performance. The attached schedules provide a full reconciliation
of any such non-GAAP financial measures.
Euronet
Worldwide will host an analyst conference call on Wednesday, April 26, 2006,
at
10:00 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=103272.
Participants should go to the web site at least 15 minutes before this event
to
download and install any necessary audio software. For those without Internet
access, the conference call-in number is +1-877-407-9210 (USA) or
+1-201-689-8049 (non-USA). The password is "Euronet."
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=103272
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 198728. The call and webcast replay will be available for one
month. You can also access the Earnings presentation at www.euronetworldwide.com/investors/library/presentations.asp
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 outsourcing and consulting services, integrated
EFT software, network gateways, electronic prepaid top-up services to financial
institutions, mobile operators and retailers, as well as electronic consumer
money transfer and bill payment services. Euronet operates and services the
largest pan-European group of ATMs and operates the largest Indian shared
ATM
network. Euronet is also one of the largest providers of prepaid processing,
or
top-up services, for prepaid mobile airtime. The Company is a licensed
electronic money transmitter and bill payment company via Euronet Payments
and
Remittance, Inc. The Company has processing centers located in the U.S.,
Europe
and Asia, and processes electronic top-up transactions at more than 242,000
point-of-sale terminals across more than 134,000 retailers in Europe, Asia
Pacific, Africa and the U.S. With corporate headquarters in Leawood, Kansas,
USA, and 24 worldwide offices, Euronet serves clients in more than 80 countries.
Visit the Company’s web site at www.euronetworldwide.com.
Any
statements contained in this news release that concern the Company's or
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.
|
EURONET
WORLDWIDE, INC.
|
||||||||||
|
Consolidated
Statement of Income
|
||||||||||
|
(unaudited
- in thousands, except per share data)
|
||||||||||
|
Three
Months Ended
|
||||||||||
|
March
31,
|
||||||||||
|
2006
|
2005
*
|
|||||||||
|
Consolidated
Statements of Income Data:
|
||||||||||
|
Revenues:
|
||||||||||
|
EFT
Processing Segment
|
$
|
29,868
|
$
|
23,889
|
||||||
|
Prepaid
Processing Segment
|
110,961
|
89,381
|
||||||||
|
Software
Solutions Segment
|
6,141
|
3,936
|
||||||||
|
Total
|
146,970
|
117,206
|
||||||||
|
Operating
expenses:
|
||||||||||
|
Direct
operating costs
|
101,353
|
82,372
|
||||||||
|
Salaries
and benefits
|
18,034
|
13,204
|
||||||||
|
Selling,
general and administrative
|
8,436
|
6,138
|
||||||||
|
Depreciation
and amortization
|
6,819
|
5,025
|
||||||||
|
Total
operating expenses
|
134,642
|
106,739
|
||||||||
|
Operating
income
|
12,328
|
10,467
|
||||||||
|
Other
income (expenses):
|
||||||||||
|
Interest
income
|
2,722
|
1,207
|
||||||||
|
Interest
expense
|
(3,597
|
)
|
(1,588
|
)
|
||||||
|
Income
from unconsolidated affiliates
|
171
|
245
|
||||||||
|
Foreign
exchange gain (loss), net
|
1,558
|
(2,842
|
)
|
|||||||
|
Total
other expense, net
|
854
|
(2,978
|
)
|
|||||||
|
Income
from continuing operations before
|
||||||||||
|
income
taxes and minority interest
|
13,182
|
7,489
|
||||||||
|
Income
tax expense
|
(3,570
|
)
|
(3,830
|
)
|
||||||
|
Minority
interest
|
(261
|
)
|
(88
|
)
|
||||||
|
Net
Income
|
$
|
9,351
|
$
|
3,571
|
||||||
|
Earnings
per share - diluted:
|
||||||||||
|
Earnings
per Share
|
$
|
0.24
|
$
|
0.10
|
||||||
|
Diluted
weighted average shares outstanding
|
42,263,210
|
36,099,360
|
||||||||
|
*Adjusted
to include the retroactively applied effects of SFAS
No.
|
||||||||||
|
123R
share-based compensation
expense.
|
||||||||||
|
EURONET
WORLDWIDE, INC.
|
|||||||
|
Consolidated
Summary Balance Sheets
|
|||||||
|
(unaudited
- in thousands)
|
|||||||
|
As
Of
|
As
Of
|
||||||
|
March
31,
|
December
31,
|
||||||
|
2006
|
2005
*
|
||||||
|
ASSETS
|
|||||||
|
Current
assets:
|
|||||||
|
Cash
and cash equivalents
|
$
|
223,735
|
$
|
219,932
|
|||
|
Restricted
cash
|
75,958
|
73,942
|
|||||
|
Inventory
- PINs and other
|
22,940
|
25,595
|
|||||
|
Trade
accounts receivable, net of allowance for doubtful accounts
|
145,360
|
166,451
|
|||||
|
Other
current assets, net
|
29,522
|
23,023
|
|||||
|
Total
current assets
|
497,515
|
508,943
|
|||||
|
Property
and equipment, net
|
50,400
|
44,852
|
|||||
|
Goodwill
and intangible assets, net
|
320,988
|
317,919
|
|||||
|
Other
assets, net
|
21,774
|
22,638
|
|||||
|
Total
assets
|
$
|
890,677
|
$
|
894,352
|
|||
|
LIABILITIES
AND STOCKHOLDERS' EQUITY
|
|||||||
|
Current
liabilities:
|
|||||||
|
Accounts
payable and other current liabilities
|
$
|
272,513
|
$
|
298,999
|
|||
|
Current
portion of capital lease obligations and short-term borrowings
|
22,295
|
28,324
|
|||||
|
Total
current liabilities
|
294,808
|
327,323
|
|||||
|
Obligations
under capital leases, excluding current installments
|
14,531
|
12,229
|
|||||
|
Deferred
income tax
|
24,291
|
25,157
|
|||||
|
Debt
obligations
|
318,381
|
315,000
|
|||||
|
Other
long-term liabilities
|
2,045
|
1,161
|
|||||
|
Minority
interest
|
6,961
|
7,129
|
|||||
|
Total
liabilities
|
661,017
|
687,999
|
|||||
|
Stockholders'
equity
|
229,660
|
206,353
|
|||||
|
Total
liabilities and stockholders' equity
|
$
|
890,677
|
$
|
894,352
|
|||
|
*
Adjusted to include the retroactively applied effects of SFAS
No.
|
|||||||
|
123R
share-based compensation
expense.
|
|||||||
|
EURONET
WORLDWIDE, INC.
|
|||||||||||||
|
Reconciliation
of Net income to Adjusted EBITDA by Segment
|
|||||||||||||
|
(unaudited
- in millions)
|
|||||||||||||
|
Three
Months Ended March 31, 2006
|
|||||||||||||
|
EFT
|
Prepaid
|
Software
|
|||||||||||
|
Processing
|
Processing
|
Solutions
|
Consolidated
|
||||||||||
|
Net
income
|
$
|
5.0
|
$
|
7.7
|
$
|
0.4
|
$
|
9.4
|
|||||
|
Add:
Income tax
|
1.8
|
1.9
|
-
|
3.6
|
|||||||||
|
Add:
Interest expense
|
0.6
|
0.4
|
-
|
3.6
|
|||||||||
|
Add:
Loss from unconsolidated subs
|
0.2
|
-
|
-
|
-
|
|||||||||
|
Add:
Minority Interest share in income
|
-
|
0.3
|
-
|
0.3
|
|||||||||
|
Less:
Foreign exchange gain
|
-
|
-
|
-
|
(1.6
|
)
|
||||||||
|
Less:
Income from unconsolidated subs
|
-
|
(0.4
|
)
|
-
|
(0.2
|
)
|
|||||||
|
Less:
Minority Interest share in losses
|
(0.1
|
)
|
-
|
-
|
-
|
||||||||
|
Less:
Interest income
|
(0.1
|
)
|
(1.0
|
)
|
-
|
(2.7
|
)
|
||||||
|
Rounding
and other
|
-
|
0.1
|
-
|
(0.1
|
)
|
||||||||
|
Subtotal:
Operating income
|
7.4
|
9.0
|
0.4
|
12.3
|
|||||||||
|
Add:
Depreciation and amortization
|
2.9
|
3.4
|
0.4
|
6.8
|
|||||||||
|
Add:
Share-based compensation
|
-
|
-
|
-
|
1.9
|
|||||||||
|
Rounding
and other
|
0.1
|
(0.1
|
)
|
-
|
-
|
||||||||
|
Earnings
before interest, taxes, depreciation,
|
|||||||||||||
|
amortization,
and share-based
|
|||||||||||||
|
compensation
(Adjusted EBITDA)
|
$
|
10.4
|
$
|
12.3
|
$
|
0.8
|
$
|
21.0
|
|||||
|
EURONET
WORLDWIDE, INC.
|
|||||||||||||
|
Reconciliation
of Net income to Adjusted EBITDA by Segment
|
|||||||||||||
|
(unaudited
- in millions)
|
|||||||||||||
|
|
|||||||||||||
|
Three
Months Ended March 31, 2005
*
|
|||||||||||||
|
|
EFT
|
Prepaid
|
Software
|
||||||||||
|
|
Processing
|
Processing
|
Solutions
|
Consolidated
|
|||||||||
|
Net
income
|
$
|
4.0
|
$
|
6.3
|
$
|
0.9
|
$
|
3.6
|
|||||
|
Add:
Income tax
|
1.1
|
2.4
|
-
|
3.8
|
|||||||||
|
Add:
Interest expense
|
0.6
|
0.2
|
-
|
1.6
|
|||||||||
|
Add:
Minority Interest
|
-
|
-
|
-
|
0.1
|
|||||||||
|
Add:
Foreign exchange loss
|
-
|
-
|
-
|
2.8
|
|||||||||
|
Less:
Income from unconsolidated subs
|
-
|
(0.1
|
)
|
-
|
(0.2
|
)
|
|||||||
|
Less:
Interest income
|
-
|
(0.9
|
)
|
-
|
(1.2
|
)
|
|||||||
|
Rounding
and other
|
(0.1
|
)
|
(0.1
|
)
|
-
|
-
|
|||||||
|
Subtotal:
Operating income
|
5.6
|
7.8
|
0.9
|
10.5
|
|||||||||
|
Add:
Depreciation and amortization
|
2.5
|
2.2
|
0.3
|
5.0
|
|||||||||
|
Add:
Share-based compensation
|
0.1
|
-
|
-
|
1.3
|
|||||||||
|
Rounding
and other
|
(0.1
|
)
|
0.1
|
-
|
-
|
||||||||
|
Earnings
before interest, taxes, depreciation,
|
|||||||||||||
|
amortization,
and share-based
|
|||||||||||||
|
compensation
(Adjusted EBITDA)
|
$
|
8.1
|
$
|
10.1
|
$
|
1.2
|
$
|
16.8
|
|||||
|
*
Adjusted to include the retroactively applied effects of SFAS No.
123R
share-based
|
|||||||||||||
|
compensation
expense.
|
|||||||||||||
|
EURONET
WORLDWIDE, INC.
|
|||||||
|
Reconciliation
of Net Income Excluding FX, Share-Based Compensation and Retirement
of
Debt
|
|||||||
|
(unaudited
- in millions, except share and per share data)
|
|||||||
|
Three
months ended
|
|||||||
|
March
31,
|
|||||||
|
2006
|
2005
*
|
||||||
|
Net
income
|
$
|
9.4
|
$
|
3.6
|
|||
|
Convertible
debt issuance costs (1)
|
0.2
|
-
|
|||||
|
Interest
on convertible debt (1)
|
0.6
|
-
|
|||||
|
Earnings
applicable for common shareholders
|
10.2
|
|
3.6
|
||||
|
Foreign
exchange loss (gain)
|
(1.6
|
)
|
2.8
|
||||
|
Share-based
compensation
|
1.9
|
1.3
|
|||||
|
Rounding
|
-
|
0.1
|
|||||
|
Earnings
applicable for common shareholders before
|
|||||||
|
foreign
exchange gains/losses, share-based compensation,
|
|||||||
|
discontinued
operations loss and early retirement of debt losses
|
$
|
10.5
|
$
|
7.8
|
|||
|
Adjusted
earnings per share - diluted (2)
|
$
|
0.25
|
$
|
0.21
|
|||
|
Diluted
weighted average shares outstanding (1)
|
42,263,210
|
36,099,360
|
|||||
|
*
Adjusted to include the retroactively applied effects of SFAS No.
123R
share-based compensation expense.
|
|||||||
| (1) |
As
required by GAAP, convertible debt issuance and interest costs
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.
|
|
| (2) |
Adjusted
income 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.
|