FWLT (MM)

Foster Wheeler Ltd. (Nasdaq: FWLT) today reported record net income for the second quarter of 2008 of $160.8 million, or $1.11 per diluted share, compared with $71.9 million, or $0.50 per diluted share, in the second quarter of 2007. Net income in the second quarter of 2008 included a net asbestos-related gain of $18.3 million, or $0.13 per share. Excluding this item, net income in the second quarter of 2008 was a record $142.5 million, or $0.98 per diluted share. Second-quarter 2008 consolidated EBITDA (earnings before interest expense, income taxes, depreciation and amortization) was a record $220.4 million, compared with $118.6 million in the second quarter of 2007. Excluding the net asbestos-related gain cited above, consolidated EBITDA in the second quarter of 2008 was $202.2 million. For the first six months of 2008, net income was $298.8 million, or $2.06 per diluted share, compared with $186.7 million, or $1.30 per diluted share, for the first six months of 2007. Consolidated EBITDA for the first six months of 2008 was $415.7 million, compared with $280.9 million for the first six months of 2007. The six-month period of 2008 included a net asbestos-related gain of $32.5 million, as outlined in the table accompanying this press release. The following tables present quarterly and average quarterly data, both as reported and adjusted. The company believes that such figures provide meaningful comparative relevance for certain key metrics in light of the significant quarter-to-quarter variability that is inherent in the company�s financial results. (in millions) � Actual Q2 2008 � Qtrly Avg. 2008 � Actual Q2 2007 � Qtrly Avg. 2007 Net income � $161 � $149 � $72 � $98 Net income, as adjusted � $143 � $133 � $72 � $97 Consolidated EBITDA � $220 � $208 � $119 � $148 Consolidated EBITDA, as adjusted � $202 � $192 � $119 � $146 Commenting on the company�s quarterly results, Foster Wheeler�s Chairman and Chief Executive Officer, Raymond J. Milchovich, said, �The record-level of EBITDA in both of our business groups was the result of continued strong demand and excellent execution and commercial practices in all of our operating units. In accordance with our previous guidance, the company�s Global Power Group has continued to generate EBITDA well above the levels of a year ago, due to robust market activity as well as the systemic improvements in commercial and operational practices that this group has achieved over the past two years. Also notable is the fact that our Engineering and Construction Group posted exceptional results without reliance on project incentives or bonuses, which were immaterial during the quarter.� Global Engineering and Construction (E&C) Group (in millions) � Actual Q2 2008 � Qtrly Avg. 2008 � Actual Q2 2007 � Qtrly Avg. 2007 New orders booked (FW Scope) � $538 � $575 � $316 � $538 Operating revenues (FW Scope) � $515 � $531 � $483 � $536 Segment EBITDA � $156 � $145 � $125 � $126 EBITDA Margin (FW Scope) � 30.2% � 27.3% � 25.9% � 23.6% Segment EBITDA was a record $155.7 million in the second quarter of 2008, an increase of 24% compared with the average quarter of 2007. EBITDA margin on scope revenue was 30.2% in the second quarter of 2008, compared with 23.6% for the average quarter of 2007. EBITDA for the second quarter of 2008 included an incremental $6.7 million of earnings, representing Foster Wheeler�s equity share, from two partially owned power projects in Italy resulting from a recent regulatory ruling that provides for reimbursement of costs associated with emission rights, of which $5.2 million related to reimbursement of costs incurred in earlier periods. Operating revenues in Foster Wheeler Scope were $514.8 million in the second quarter of 2008, a decrease of 4% compared with scope revenue for the average quarter of 2007, reflecting inherent variability in the timing and mix of contracts. New orders booked in Foster Wheeler Scope were $538.0 million in the second quarter of 2008, flat with the average quarter of 2007. Average-quarter bookings for the first six months of 2008 were 7% above the average quarter of 2007. Backlog in Foster Wheeler Scope was $1.8 billion at the end of the second quarter of 2008, up 26% compared with the year-ago period. At the end of the second quarter of 2008, the number of man-hours in backlog amounted to 13.5 million, an increase of 23% compared with the year-ago period. Global Power Group (GPG) (in millions) Actual Q2 2008 � Qtrly Avg. 2008 � Actual Q2 2007 � Qtrly Avg. 2007 New orders booked (FW Scope) $191 � $362 � $550 � $499 Operating revenues (FW Scope) $448 � $425 � $336 � $354 Segment EBITDA $68 � $66 � $4 � $35 EBITDA Margin (FW Scope) 15.2% � 15.6% � 1.3% � 9.8% Segment EBITDA was a record $68.4 million in the second quarter of 2008, an increase of 97% compared with the average quarter of 2007. The results were driven by robust market activity and the Group�s commercial and operational improvement initiatives. Results in the second quarter of 2008 were also aided by $2.3 million of incremental earnings from Foster Wheeler�s share of a partially owned Chilean power project, due in part to higher electric tariff rates. EBITDA margin on scope revenue was 15.2% in the second quarter of 2008, as compared to 9.8% for the average quarter of 2007. Excluding the 2007 impact of a $30 million reserve for a legacy power project, the average quarterly EBITDA for that year was $42 million and the average EBITDA margin on scope revenue was 12%. Operating revenues in Foster Wheeler Scope were $448.4 million in the second quarter of 2008, an increase of 27% compared with the average quarter of 2007. New orders booked in Foster Wheeler Scope were $191.4, well below the average quarter of 2007, as North American clients deferred certain prospective power projects due to a combination of increased environmental scrutiny, cost inflation and macro-economic concerns. Backlog in Foster Wheeler Scope was $1.5 billion at the end of the second quarter of 2008, an increase of 10% compared with scope backlog at the end of the year-ago quarter. Milchovich noted, �The markets we serve in our E&C business remain very strong. In July, for example, the number of man-hours booked was more than 70% higher than the average monthly booking rate of the first six months of the year -- and we expect to have a strong second half in bookings.� Milchovich added, �In our GPG business � consistent with our guidance at the end of the first quarter of this year � we are seeing delays, but not cancellations, in some North American prospects. As we assess the North American market more broadly, we believe these kinds of delays are likely to be temporary. Nevertheless, as we have previously indicated, we are aiming to offset such delays by booking work outside of North America, where we have long had a very strong presence, as well as pursuing other prospects in the North American market. We were encouraged to see that the contract value of new orders in July in our GPG business was more than double the average monthly contract value booked during the first six months of this year � with international bookings setting the pace. We expect our GPG business to post all-time record results in 2008. Beyond that, the degree to which GPG will deliver earnings growth in 2009 will depend on how the North American market develops and on our continued success in booking contracts outside of North America.� Calculation of EBITDA EBITDA is a supplemental financial measure not defined in generally accepted accounting principles or GAAP. The Company defines EBITDA as income before interest expense, income taxes, depreciation and amortization. The Company has presented EBITDA because it believes it is an important supplemental measure of operating performance. EBITDA, after adjustment for certain unusual and infrequent items specifically excluded in the terms of the Company's current and prior senior credit agreements, is used for certain covenants under its current and prior senior credit agreements. The Company believes that the line item on its consolidated statements of operations and comprehensive income entitled "net income" is the most directly comparable GAAP financial measure to EBITDA. Since EBITDA is not a measure of performance calculated in accordance with GAAP, it should not be considered in isolation of, or as a substitute for, net income as an indicator of operating performance or any other GAAP financial measure. EBITDA, as calculated by the Company, may not be comparable to similarly titled measures employed by other companies. In addition, this measure does not necessarily represent funds available for discretionary use, and is not necessarily a measure of the Company's ability to fund its cash needs. As EBITDA excludes certain financial information that is included in net income, users of this financial information should consider the type of events and transactions that are excluded. The Company's non-GAAP performance measure, EBITDA, has certain material limitations as follows: It does not include interest expense. Because the Company has borrowed money to finance some of its operations, interest is a necessary and ongoing part of its costs and has assisted the Company in generating revenue. Therefore, any measure that excludes interest has material limitations; It does not include taxes. Because the payment of taxes is a necessary and ongoing part of the Company's operations, any measure that excludes taxes has material limitations; and It does not include depreciation and amortization. Because the Company must utilize property, plant and equipment and intangible assets in order to generate revenues in its operations, depreciation and amortization are necessary and ongoing costs of its operations. Therefore, any measure that excludes depreciation and amortization has material limitations. Calculation of EBITDA Margin Segment EBITDA margin is calculated by dividing business unit operating revenues in Foster Wheeler Scope into business unit EBITDA. Foster Wheeler Scope Foster Wheeler Scope represents that portion of unfilled orders, new orders booked and operating revenues on which profit can be earned. Foster Wheeler Scope excludes revenues relating to third-party costs incurred by the company as agent or principal on a reimbursable basis. The Company began comprehensively reporting Foster Wheeler Scope as of 2005. Conference Call Information Foster Wheeler Ltd. plans to hold a conference call today, Wednesday, August 6, at 8:30 a.m. (Eastern) to discuss its financial results for the second quarter of 2008. The call will be accessible to the public by telephone or webcast, and the company will post an accompanying slide presentation in the investor relations section of its web site (www.fwc.com). To listen to the call by telephone, dial 973-935-8752 (conference I.D. No. 56350296#) approximately ten minutes before the call. The conference call will also be available over the Internet at www.fwc.com or through StreetEvents at www.streetevents.com. A replay of the call will be available on the company's web site as well as by telephone. To listen to the replay by telephone, dial 706-645-9291 (replay passcode 56350296# required) starting one hour after the conclusion of the call through 8:00 p.m. (Eastern) on Friday, September 5, 2008. The replay can also be accessed on the company's web site for four weeks following the call. Foster Wheeler Ltd. is a global engineering and construction contractor and power equipment supplier delivering technically advanced, reliable facilities and equipment. The company employs over 14,000 talented professionals with specialized expertise dedicated to serving our clients through one of its two primary business groups. The company�s Engineering & Construction (E&C) Group designs and constructs leading-edge processing facilities for the upstream oil and gas, LNG and gas-to-liquids, refining, chemicals and petrochemicals, power, environmental, pharmaceuticals, biotechnology and healthcare industries. The company�s Global Power Group is a world leader in combustion and steam generation technology that designs, manufactures and erects steam generating and auxiliary equipment for power stations and industrial facilities and also provides a wide range of aftermarket services. The company is based in Hamilton, Bermuda, and its operational headquarters are in Clinton, New Jersey, USA. For more information about Foster Wheeler, please visit our Web site at www.fwc.com. Safe Harbor Statement Foster Wheeler news releases may contain forward-looking statements that are based on management�s assumptions, expectations and projections about the Company and the various industries within which the Company operates. These include statements regarding the Company�s expectations about revenues (including as expressed by its backlog), its liquidity, the outcome of litigation and legal proceedings and recoveries from customers for claims and the costs of current and future asbestos claims and the amount and timing of related insurance recoveries. Such forward-looking statements by their nature involve a degree of risk and uncertainty. The Company cautions that a variety of factors, including but not limited to the factors described in Part I, Item 1A �Risk Factors� of the Company�s 2007 Form 10-K, which we filed with the SEC on February 26, 2008 and the following, could cause the Company�s business conditions and results to differ materially from what is contained in forward-looking statements: changes in the rate of economic growth in the United States and other major international economies, changes in investment by the oil and gas, oil refining, chemical/petrochemical and power industries, changes in the financial condition of its customers, changes in regulatory environments, changes in project design or schedules, contract cancellations, changes in estimates made by the Company of costs to complete projects, changes in trade, monetary and fiscal policies worldwide, compliance with laws and regulations relating to its global operations, currency fluctuations, war and/or terrorist attacks on facilities either owned by us or where equipment or services are or may be provided by us, interruptions to shipping lanes or other methods of transit, outcomes of pending and future litigation, including litigation regarding the Company�s liability for damages and insurance coverage for asbestos exposure, protection and validity of its patents and other intellectual property rights, increasing competition by foreign and domestic companies, compliance with its debt covenants, recoverability of claims against its customers and others by the Company and clams by third parties against the Company, and changes in estimates used in its critical accounting policies. Other factors and assumptions not identified above were also involved in the formation of these forward-looking statements and the failure of such other assumptions to be realized, as well as other factors, may also cause actual results to differ materially from those projected. Most of these factors are difficult to predict accurately and are generally beyond the Company�s control. You should consider the areas of risk described above in connection with any forward-looking statements that may be made by the Company. The Company undertakes no obligation to publicly update any forward-looking statements, whether as a result of new information, future events or otherwise. You are advised, however, to consult any additional disclosures the Company makes in proxy statements, quarterly reports on Form 10-Q, annual reports on Form 10-K and current reports on Form 8-K filed with the Securities and Exchange Commission. Foster Wheeler Ltd. and Subsidiaries Condensed Consolidated Statement of Operations (in thousands of dollars, except share data and per share amounts) (unaudited) � � � Fiscal Quarters Ended � Fiscal Six Months Ended June 27, 2008 June 29, 2007 � June 27, 2008 June 29, 2007 � � Operating revenues $ 1,701,022 $ 1,189,766 $ 3,496,746 $ 2,341,888 Cost of operating revenues � (1,454,806 ) � (1,020,920 ) � (3,033,559 ) � (1,965,530 ) Contract profit 246,216 168,846 463,187 376,358 � Selling, general & administrative expenses (79,044 ) (62,305 ) (143,940 ) (117,393 ) Other income 18,639 15,647 38,173 21,411 Other deductions (6,203 ) (17,231 ) (18,094 ) (25,403 ) Interest income 12,167 6,044 22,698 11,796 Interest expense (4,860 ) (5,211 ) (11,011 ) (9,936 ) Minority interest in income of consolidated affiliates (552 ) (964 ) (1,025 ) (3,273 ) Net asbestos-related gain 18,275 - 32,463 - � � � � Income before income taxes 204,638 104,826 382,451 253,560 Provision for income taxes � (43,883 ) � (32,976 ) � (83,633 ) � (66,885 ) Net income $ 160,755 � $ 71,850 � $ 298,818 � $ 186,675 � � � Shares Outstanding: Weighted-average number of common shares outstanding for basic earnings per common share 143,994,084 141,078,576 143,955,937 140,293,164 � Weighted-average number of common shares outstanding for diluted earnings per common share 145,421,350 144,622,042 145,385,086 144,145,922 � � � � Earnings per common share: Basic $ 1.12 � $ 0.51 � $ 2.08 � $ 1.33 � Diluted $ 1.11 � $ 0.50 � $ 2.06 � $ 1.30 � Foster Wheeler Ltd. and Subsidiaries Condensed Consolidated Balance Sheet (in thousands of dollars) (unaudited) � June 27, � December 28, � 2008 � � 2007 � ASSETS Current Assets: Cash and cash equivalents $ 1,270,194 $ 1,048,544 Accounts and notes receivable, net: Trade 610,796 580,883 Other 122,915 98,708 Contracts in process 299,361 239,737 Prepaid, deferred and refundable income taxes 40,507 36,532 Other current assets � 37,378 � � 39,979 � Total current assets � 2,381,151 � � 2,044,383 � � Land, buildings and equipment, net 368,008 337,485 Restricted cash 47,514 20,937 Notes and accounts receivable � long-term 2,394 2,941 Investments in and advances to unconsolidated affiliates 221,849 198,346 Goodwill, net 62,795 53,345 Other intangible assets, net 63,619 61,190 Asbestos-related insurance recovery receivable 304,977 324,588 Other assets 93,301 93,737 Deferred income taxes � 109,692 � � 112,036 � TOTAL ASSETS $ 3,655,300 � $ 3,248,988 � � LIABILITIES, TEMPORARY EQUITY AND SHAREHOLDERS� EQUITY Current Liabilities: Current installments on long-term debt $ 20,263 $ 19,368 Accounts payable 368,118 372,531 Accrued expenses 308,801 331,814 Billings in excess of costs and estimated earnings on uncompleted contracts 844,602 744,236 Income taxes payable � 75,116 � � 55,824 � Total current liabilities � 1,616,900 � � 1,523,773 � � Long-term debt 207,582 185,978 Deferred income taxes 83,109 81,008 Pension, postretirement and other employee benefits 275,525 290,741 Asbestos-related liability 350,672 376,803 Other long-term liabilities and minority interest 208,279 216,916 Commitments and contingencies � � TOTAL LIABILITIES � 2,742,067 � � 2,675,219 � � Temporary Equity: Non-vested restricted awards subject to redemption � 4,616 � � 2,728 � TOTAL TEMPORARY EQUITY � 4,616 � � 2,728 � � Shareholders' Equity: Preferred shares - - Common shares 1,442 1,439 Paid-in capital 1,393,006 1,385,311 Accumulated deficit (255,777 ) (554,595 ) Accumulated other comprehensive loss � (230,054 ) � (261,114 ) TOTAL SHAREHOLDERS� EQUITY � 908,617 � � 571,041 � TOTAL LIABILITIES, TEMPORARY EQUITY � � AND SHAREHOLDERS� EQUITY $ 3,655,300 � $ 3,248,988 � Foster Wheeler Ltd. and Subsidiaries Business Segments (in thousands of dollars) (unaudited) � Fiscal Quarters Ended Fiscal Six Months Ended June 27, 2008 June 29, 2007 June 27, 2008 June 29, 2007 Global Engineering & Construction Group Backlog - in future revenues $ 6,654,600 $ 4,164,200 $ 6,654,600 $ 4,164,200 New orders booked - in future revenues 646,300 430,500 1,353,600 1,303,200 Operating revenues 1,249,730 851,245 2,640,731 1,675,414 EBITDA 155,688 124,999 290,148 266,132 � Foster Wheeler Scope (1): Backlog - in Foster Wheeler Scope 1,817,900 1,437,900 1,817,900 1,437,900 New orders booked - in Foster Wheeler Scope 538,000 316,200 1,150,500 849,500 Operating revenues - in Foster Wheeler Scope 514,813 483,447 1,062,021 1,013,078 � Global Power Group Backlog - in future revenues 1,518,200 1,379,600 1,518,200 1,379,600 New orders booked - in future revenues 194,200 552,800 730,600 1,096,600 Operating revenues 451,292 338,521 856,015 666,474 EBITDA 68,378 4,366 132,794 41,390 � Foster Wheeler Scope (1): Backlog - in Foster Wheeler Scope 1,505,400 1,366,400 1,505,400 1,366,400 New orders booked - in Foster Wheeler Scope 191,400 549,800 724,700 1,090,500 Operating revenues - in Foster Wheeler Scope 448,437 335,578 850,100 660,400 � Corporate & Finance Group (2) EBITDA (3,638 ) (10,767 ) (7,194 ) (26,627 ) � Consolidated Backlog - in future revenues 8,172,800 5,543,800 8,172,800 5,543,800 New orders booked - in future revenues 840,500 983,300 2,084,200 2,399,800 Operating revenues 1,701,022 1,189,766 3,496,746 2,341,888 EBITDA 220,428 118,598 415,748 280,895 � Foster Wheeler Scope (1): Backlog - in Foster Wheeler Scope 3,323,300 2,804,300 3,323,300 2,804,300 New orders booked - in Foster Wheeler Scope 729,400 866,000 1,875,200 1,940,000 Operating revenues - in Foster Wheeler Scope 963,250 819,025 1,912,121 1,673,478 � � � (1) Foster Wheeler Scope represents that portion of backlog, new orders booked and operating revenues on which profit can be earned. Foster Wheeler Scope excludes revenues relating to third-party costs incurred by the company as agent or principal on a reimbursable basis. � (2) Includes intersegment eliminations. Foster Wheeler Ltd. and Subsidiaries Reconciliations of EBITDA and Foster Wheeler Scope (in thousands of dollars) (unaudited) � � � � � Fiscal Quarters Ended Fiscal Six Months Ended Fiscal Twelve Months Ended June 27, 2008 June 29, 2007 June 27, 2008 June 29, 2007 December 28, 2007 Reconciliation of EBITDA to net Income EBITDA: Global Engineering & Construction $ 155,688 $ 124,999 $ 290,148 $ 266,132 $ 505,647 Global Power Group 68,378 4,366 132,794 41,390 139,177 Corporate & Finance Group � (3,638 ) � (10,767 ) � (7,194 ) � (26,627 ) � (52,984 ) Consolidated EBITDA 220,428 118,598 415,748 280,895 591,840 Less: Interest expense (4,860 ) (5,211 ) (11,011 ) (9,936 ) (19,855 ) Less: Depreciation/ amortization (1) � (10,930 ) � (8,561 ) � (22,286 ) � (17,399 ) � (41,691 ) Income before income taxes 204,638 104,826 382,451 253,560 530,294 Provision for income taxes � (43,883 ) � (32,976 ) � (83,633 ) � (66,885 ) � (136,420 ) Net income $ 160,755 � $ 71,850 � $ 298,818 � $ 186,675 � $ 393,874 � � Reconciliation of Foster Wheeler Scope Operating Revenues to Operating Revenues � Global Engineering & Construction Group � Foster Wheeler Scope operating revenues $ 514,813 $ 483,447 $ 1,062,021 $ 1,013,078 $ 2,144,199 Flow-through revenues � 734,917 � � 367,798 � � 1,578,710 � � 662,336 � � 1,537,060 � Operating revenues � 1,249,730 � � 851,245 � � 2,640,731 � � 1,675,414 � � 3,681,259 � � Global Power Group � Foster Wheeler Scope operating revenues 448,437 335,578 850,100 660,400 1,413,462 Flow-through revenues � 2,855 � � 2,943 � � 5,915 � � 6,074 � � 12,522 � Operating revenues � 451,292 � � 338,521 � � 856,015 � � 666,474 � � 1,425,984 � � Consolidated � Foster Wheeler Scope operating revenues 963,250 819,025 1,912,121 1,673,478 3,557,661 Flow-through revenues � 737,772 � � 370,741 � � 1,584,625 � � 668,410 � � 1,549,582 � Operating revenues $ 1,701,022 � $ 1,189,766 � $ 3,496,746 � $ 2,341,888 � $ 5,107,243 � � � (1) The depreciation / amortization by business segment: Fiscal Quarters Ended Fiscal Six Months Ended Fiscal Twelve Months Ended � June 27, 2008 June 29, 2007 June 27, 2008 June 29, 2007 December 28, 2007 Global Engineering & Construction Group $ (5,365 ) $ (3,400 ) $ (11,000 ) $ (6,878 ) $ (17,485 ) Global Power Group (5,219 ) (4,818 ) (10,597 ) (9,837 ) (22,835 ) Corporate & Finance Group � (346 ) � (343 ) � (689 ) � (684 ) � (1,371 ) Total depreciation / amortization $ (10,930 ) $ (8,561 ) $ (22,286 ) $ (17,399 ) $ (41,691 ) Foster Wheeler Ltd. and Subsidiaries EBITDA and Diluted Earnings Per Common Share Reconciliation (in thousands of dollars, except per share amounts) (unaudited) � � � Fiscal Quarter Ended June 27, 2008 � Diluted Earnings EBITDA Net Earnings Per Common Share As adjusted $ 202,153 $ 142,480 $ 0.98 � Add back: Net asbestos-related gains 18,275 18,275 $ 0.13 � � � As reported $ 220,428 $ 160,755 $ 1.11 � � Fiscal Six Months Ended June 27, 2008 � Diluted Earnings EBITDA Net Earnings Per Common Share As adjusted $ 383,285 $ 266,355 $ 1.83 � Add back: Net asbestos-related gains 32,463 32,463 0.23 � � � As reported $ 415,748 $ 298,818 $ 2.06 � � Fiscal Twelve Months Ended December 28, 2007 � Diluted Earnings EBITDA Net Earnings Per Common Share As adjusted $ 585,695 $ 387,729 $ 2.68 � Add back: Net asbestos-related gains 6,145 6,145 0.04 � � � As reported $ 591,840 $ 393,874 $ 2.72 Foster Wheeler Ltd. And Subsidiaries Average Calculations (in thousands of dollars) (unaudited) � � � � 2007 Full Year Amount 2007 Quarterly Average Amount * Fiscal Six Months Ended June 27, 2008 2008 Quarterly Average Amount ** � Consolidated Net income $ 393,874 $ 98,469 $ 298,818 $ 149,409 Adjusted net income 387,729 96,932 266,355 133,178 Consolidated EBITDA 591,840 147,960 415,748 207,874 Consolidated EBITDA, as adjusted 585,695 146,424 383,285 191,643 � � Global Engineering & Construction Group New orders booked - in Foster Wheeler Scope $ 2,150,800 $ 537,700 $ 1,150,500 $ 575,250 Operating revenues - in Foster Wheeler Scope 2,144,199 536,050 1,062,021 531,011 Segment EBITDA 505,647 126,412 290,148 145,074 EBITDA margin 23.6 % 23.6 % 27.3 % 27.3 % � � Global Power Group New orders booked - in Foster Wheeler Scope $ 1,996,000 $ 499,000 $ 724,700 $ 362,350 Operating revenues - in Foster Wheeler Scope 1,413,462 353,366 850,100 425,050 Segment EBITDA 139,177 34,794 132,794 66,397 EBITDA margin 9.8 % 9.8 % 15.6 % 15.6 % � � * To calculate the quarterly average dollar amounts, the company divided reported annual figures by four. � ** To calculate the quarterly average dollar amounts, the company divided reported six-month figures by two.