2005 Financial Review

SELECTED FINANCIAL DATA

Five Years in Review

             
(In millions, except per share amounts)   2005 2004 2003 2002 2001
Revenues and Income            
Revenues $ 2,549.0 2,277.5 1,999.4 1,862.3 1,793.9
Income from continuing operations   42.3 71.5 37.9 57.6 58.5
Income (loss) from discontinued operations (a)   105.5 50.0 (8.5) (31.5) (41.9)
Cumulative effect of change in accounting principle (b)   (5.4) - - - -
Net income (loss) $ 142.4 121.5 29.4 26.1 16.6
Financial Position            
Property and equipment, net $ 867.4 914.0 873.2 871.2 915.5
Total assets   3,036.9 2,692.7 2,548.6 2,459.9 2,423.2
Long-term debt, less current maturities   251.9 181.6 221.5 304.2 257.4
Shareholders’ equity   837.5 688.5 495.6 381.2 476.1
Per Common Share            
Basic, net income (loss):            
Continuing operations $ 0.75 1.31 0.71 1.08 1.13
Discontinued operations (a)   1.88 0.92 (0.16) (0.60) (0.82)
Cumulative effect of change in accounting principle (b)   (0.10) - - - -
Total basic $ 2.53 2.23 0.55 0.48 0.31
Diluted, net income (loss):            
Continuing operations $ 0.74 1.29 0.71 1.08 1.12
Discontinued operations (a)   1.85 0.91 (0.16) (0.60) (0.81)
Cumulative effect of change in accounting principle (b)   (0.09) - - - -
Total diluted $ 2.50 2.20 0.55 0.48 0.31
Cash dividends $ 0.10 0.10 0.10 0.10 0.10
Weighted Average Common Shares Outstanding            
Basic   56.3 54.6 53.1 52.1 51.2
Diluted   57.0 55.3 53.2 52.4 51.4
(a)
Income (loss) from discontinued operations reflects the operations and gains and losses on disposal of the Company’s former coal, natural gas, timber, gold and BAX Global operations. Some of the expenses recorded within discontinued operations through 2002 are continuing after the disposition of the coal business and are recorded within continuing operations in 2003, 2004 and 2005. The expenses that continue primarily consist of postretirement and other employee benefits associated with Company-sponsored plans and black lung obligations, and administrative and legal expenses to oversee residual assets and retained benefit obligations. See notes 4 and 5. In accordance with APB 30, the Company included these expenses within discontinued operations for periods prior to 2003. Beginning in 2003, expenses related to Company-sponsored pension and postretirement benefit obligations, black lung obligations and related administrative costs are recorded as a component of continuing operations. The amount of expenses related to postretirement and other employee benefits associated with the Company-sponsored plans and black lung obligations that were charged to discontinued operations were $2 million and $53 million, for the years ended 2002 and 2001, respectively. Adjustments to contingent liabilities are continuing to be recorded within discontinued operations.
(b)
The Company’s 2005 results of operations includes a noncash after-tax charge of $5.4 million or $0.09 per diluted share to reflect the cumulative effect of a change in accounting principle pursuant to the adoption of FIN 47.