2005 Financial Review

CONSOLIDATED STATEMENTS OF OPERATIONS

         
  Years Ended December 31,
(In millions, except per share amounts)   2005 2004 2003
Revenues $ 2,549.0 2,277.5 1,999.4
Expenses:        
Operating expenses   2,041.8 1,790.7 1,591.7
Selling, general and administrative expenses   406.8 360.5 332.4
Total expenses   2,448.6 2,151.2 1,924.1
Other operating income, net   15.0 11.1 22.0
Operating profit   115.4 137.4 97.3
Interest expense   (18.6) (20.8) (23.6)
Interest and other income, net   9.3 7.9 9.0
Minority interest   (14.3) (12.4) (8.4)
Income from continuing operations before income taxes   91.8 112.1 74.3
Provision for income taxes   49.5 40.6 36.4
Income from continuing operations   42.3 71.5 37.9
Income (loss) from discontinued operations, net of income taxes   105.5 50.0 (8.5)
Income before cumulative effect of change in accounting principle   147.8 121.5 29.4
Cumulative effect of change in accounting principle, net of income taxes   (5.4) - -
Net income $ 142.4 121.5 29.4
Earnings per common share        
Basic:        
Continuing operations $ 0.75 1.31 0.71
Discontinued operations   1.88 0.92 (0.16)
Cumulative effect of change in accounting principle   (0.10) - -
Net income $ 2.53 2.23 0.55
Diluted:        
Continuing operations $ 0.74 1.29 0.71
Discontinued operations   1.85 0.91 (0.16)
Cumulative effect of change in accounting principle   (0.09) - -
Net income $ 2.50 2.20 0.55
Weighted-average common shares outstanding        
Basic   56.3 54.6 53.1
Diluted   57.0 55.3 53.2

See accompanying notes to consolidated financial statements.

As discussed in note 1, the Company adopted FIN 47 during 2005 on a cumulative basis as of December 31, 2005 resulting in a change in the Company’s method of accounting for conditional asset retirement obligations. Pro forma amounts, assuming the new method of accounting for conditional retirement obligations was applied retroactively, are presented in note 1.