Alpharetta, Ga.-based ChoicePoint Inc. has reported second quarter total revenue growth of 15 percent compared to 2004. Second quarter total revenue for 2005 was $266.0 million. Earnings per share for the second quarter was $0.40 which included a $0.04 per share dilutive effect of specific expenses related to the fraudulent data access previously disclosed. Excluding this charge in 2005, EPS would have been $0.44, a 10 percent increase over the comparable period of 2004.
The report said core or service revenue increased 16 percent to $259.4 million for the quarter ended June 30, 2005 from $223.7 million for the same period of 2004. Internal revenue increased 7 percent over 2004, driven primarily by continued strong growth in our personal lines underwriting and background screening businesses. Second quarter total revenue increased 15 percent to $266.0 million in 2005 from $231.4 million in 2004.
Operating income for the second quarter of 2005 was $58.9 million compared to $59.5 million for 2004. Excluding $6.0 million of other operating charges related to the fraudulent data access event, operating income would have been $64.9 million for the second quarter of 2005.
In the second quarter of 2005, the company recorded a pre-tax charge of $6.0 million ($3.7 million net of taxes) for specific legal expenses and other professional fees related to the fraudulent data access previously disclosed in our prior public filings.
The lower effective tax rate for the second quarter of 2005 reflects a $700,000 benefit from the completion of a state tax audit.
Cash flows from operating activities increased 14 percent to $116.3 million for the six months ended June 30, 2005 from $102.1 million for the comparable period in 2004. Capital expenditures were $34.2 million for the six months ended June 30, 2005 compared to $24.4 million for the same period in the prior year. Net free cash flow (net cash provided by operations less capital expenditures) was $82.1 million for the six months ended June 30, 2005, which compares to net free cash flow of $77.7 million for the same period in 2004.
Net debt (total debt less cash) at June 30, 2005, decreased by $34.9 million from March 31, 2005 to $69.0 million, due to strong cash flows from operations. The remaining debt capacity at June 30, 2005 under our committed financing lines is $430 million.
Insurance Services
Total revenue increased 16 percent to $102.1 million in the second quarter of 2005 compared to $88.1 million in the prior year, representing an internal revenue growth rate of 13 percent due primarily to strong unit growth and new product contributions in our personal lines underwriting business.
Operating income increased 14 percent in Insurance Services to $55.3 million for the second quarter of 2005 compared with $48.4 million for the second quarter of 2004.
Second quarter total revenue increased 11 percent to $96.8 million in 2005 compared to $87.5 million in the prior year. Internal revenue growth was 4 percent for the second quarter of 2005, primarily due to strong contributions from our vital records, backgrounds and tenant screening businesses which offset the impact of decreased revenue from our small business public filings customers.
Based on recent business trends, ChoicePoint expects full year 2005 core revenue growth in the 16 to 19 percent range and full year 2005 operating margins, excluding other operating charges, to be in the mid 25 percent to low 26 percent range, depending on revenue growth and product mix.
ChoicePoint is a provider of identification and credential verification services for making smarter decisions in a world challenged by increased risks.
Topics Profit Loss
Was this article valuable?
Here are more articles you may enjoy.
Big ‘I’ Report: Independent Agency Channel Placed 62% of Premiums in 2023 
Home Insurance at $10,000 a Year Shows California Buyers’ Pain 
Allstate, Nationwide Post Dramatic Q12024 Homeowners Loss Ratio Drops: S&P 
As Rates Rise, Majority of Homeowners Say Insurance Industry Is in Crisis: Survey 
