FWLT (MM)

Foster Wheeler Ltd. (Nasdaq: FWLT) today reported net income for the third quarter of 2008 of $127.9 million, or $0.88 per diluted share, compared with $129.1 million, or $0.89 per diluted share, in the third quarter of 2007. Net income in the third quarters of 2008 and 2007 included asbestos-related items, as detailed in a table accompanying this release. Excluding such items from both periods, net income in the third quarter of 2008 was $129.6 million, or $0.89 per share, as compared with $120.5 million, or $0.83 per share in the year-ago quarter. Third-quarter 2008 consolidated EBITDA (earnings before interest expense, income taxes, depreciation and amortization) was $165.2 million, compared with $179.0 million in the third quarter of 2007. Excluding the items cited above, consolidated EBITDA in the third quarter of 2008 was $167.0 million, compared with $170.3 million in the year-ago quarter. For the first nine months of 2008, net income was $426.7 million, or $2.94 per diluted share, compared with $315.8 million, or $2.18 per diluted share, for the first nine months of 2007. Consolidated EBITDA for the first nine months of 2008 was $581.0 million, compared with $459.9 million for the first nine months of 2007. The nine-month periods of 2008 and 2007 included asbestos-related items, 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 Q3 2008 � Qtrly Avg. 2008 � Actual Q3 2007 � Qtrly Avg. 2007 Net income � $128 � $142 � $129 � $98 Net income, as adjusted � $130 � $132 � $121 � $97 Consolidated EBITDA � $165 � $194 � $179 � $148 Consolidated EBITDA, as adjusted � $167 � $183 � $170 � $146 Foster Wheeler�s Chairman and Chief Executive Officer, Raymond J. Milchovich, said, �Our results in the third quarter of 2008 were driven by excellent operating performance in both of the company�s business groups and a lower effective tax rate, partially offset by lower contributions from our equity interests in projects in Chile and Italy.� Global Engineering and Construction (E&C) Group (in millions) � Actual Q3 2008 � Qtrly Avg. 2008 � Actual Q3 2007 � Qtrly Avg. 2007 New orders booked (FW Scope) � $664 � $605 � $698 � $538 Operating revenues (FW Scope) � $637 � $566 � $522 � $536 Segment EBITDA � $123 � $138 � $129 � $126 EBITDA Margin (FW Scope) � 19.3% � 24.3% � 24.8% � 23.6% Segment EBITDA was $122.8 million in the third quarter of 2008, modestly below the average quarter of 2007, due in part to timing and mix of contracts. In addition, results in the third quarter of 2008 were unfavorably impacted by $5.5 million due to an increase in the tax rate on partially owned Italian power projects, an impairment charge of $2.2 million on a minority interest in a power project development in Italy, and a $6.1 million reversal of previous exchange-rate gains. These factors contributed to a reduction in EBITDA margin on scope revenue, relative to the average margin of 2007. New orders booked in Foster Wheeler Scope were $664.3 million in the third quarter of 2008, 24% above the average quarter of 2007. Backlog in Foster Wheeler Scope was $1.8 billion at the end of the third quarter of 2008, up modestly compared with the year-ago period. At the end of the third quarter of 2008, the number of man-hours in backlog amounted to 14.4 million, an all-time record for this Group. Global Power Group (GPG) (in millions) � Actual Q3 2008 � Qtrly Avg. 2008 � Actual Q3 2007 � Qtrly Avg. 2007 New orders booked (FW Scope) � $432 � $386 � $303 � $499 Operating revenues (FW Scope) � $428 � $426 � $345 � $354 Segment EBITDA � $65 � $66 � $58 � $35 EBITDA Margin (FW Scope) � 15.1% � 15.5% � 16.9% � 9.8% Segment EBITDA was $64.8 million in the third quarter of 2008, an 86% increase compared with the average quarter of 2007. The results were driven by strong operating performance on quality contracts in backlog. The EBITDA margin on scope revenue was 15.1% in the third 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 $428.0 million in the third quarter of 2008, an increase of 21% compared with the average quarter of 2007. Backlog in Foster Wheeler Scope was $1.4 billion at the end of the third quarter of 2008. Milchovich noted, �In 2008, Foster Wheeler expects to have its third consecutive year of record-setting net income, with record performance in both of our two business groups. �In the third quarter, our E&C Group reported that new orders in Foster Wheeler scope were 24% above the average quarter of 2007 � and the Group had a record-level of man-hours in backlog, despite the absence of any mega contracts signed in the quarter. Moreover, in light of the prospects the company is currently tracking, we are cautiously optimistic that E&C could end 2008 with additional growth in the number of man-hours in backlog. �In our Global Power Group, new orders rebounded from the level of the second quarter of this year, but were 13% below the average quarter of 2007, reflecting ongoing delays in North American prospects and sporadic schedule slippage in some European prospects. We expect GPG to generate a record level of EBITDA in 2008, but current market conditions are likely to challenge EBITDA performance in GPG in 2009,� said Milchovich. Share Repurchase Program On September 12, 2008, the Company announced that its board of directors had authorized a $750 million program. Under this authorization, the company purchased 1.3 million common shares during the third quarter of 2008, and 9.2 million common shares in October. The Company has approximately $412 million remaining under the existing authorization. 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, November 5, at 8:30 a.m. (Eastern) to discuss its financial results for the third 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. 67006427#) 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 67006427# required) starting one hour after the conclusion of the call through 8:00 p.m. (Eastern) on Friday, December 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 clients through one of its two primary business groups. The company�s Global Engineering & Construction 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 was 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 the Company or where equipment or services are or may be provided by the Company, 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 claims 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 Nine Months Ended September 26, 2008 � September 28, 2007 September 26, 2008 September 28, 2007 � � Operating revenues $ 1,718,355 $ 1,299,872 $ 5,215,101 $ 3,641,760 Cost of operating revenues � (1,489,095 ) � (1,101,912 ) � (4,522,654 ) � (3,067,442 ) Contract profit 229,260 197,960 692,447 574,318 � Selling, general & administrative expenses (74,831 ) (62,686 ) (218,771 ) (180,079 ) Other income, net (1,178 ) 22,319 36,995 43,730 Other deductions, net (8,986 ) (7,672 ) (27,080 ) (33,075 ) Interest income 12,457 12,467 35,155 24,263 Interest expense (5,193 ) (4,716 ) (16,204 ) (14,652 ) Minority interest in income of consolidated affiliates (834 ) (1,765 ) (1,859 ) (5,038 ) Net asbestos-related gain/ (provision) (1,725 ) 8,633 30,738 8,633 � � � � Income before income taxes 148,970 164,540 531,421 418,100 Provision for income taxes � (21,050 ) � (35,439 ) � (104,683 ) � (102,324 ) Net income $ 127,920 � $ 129,101 � $ 426,738 � $ 315,776 � � � Shares Outstanding: Weighted-average number of common shares outstanding for basic earnings per common share 144,030,570 142,517,528 143,980,815 141,034,618 � Weighted-average number of common shares outstanding for diluted earnings per common share 145,199,596 145,092,464 145,349,931 144,566,094 � � � Earnings per common share: Basic $ 0.89 � $ 0.91 � $ 2.96 � $ 2.24 � Diluted $ 0.88 � $ 0.89 � $ 2.94 � $ 2.18 � Foster Wheeler Ltd. and Subsidiaries Condensed Consolidated Balance Sheet (in thousands of dollars) (unaudited) � � September 26, � December 28, � 2008 � � 2007 � ASSETS Current Assets: Cash and cash equivalents $ 1,308,924 $ 1,048,544 Accounts and notes receivable, net: Trade 634,975 580,883 Other 121,518 98,708 Contracts in process 291,466 239,737 Prepaid, deferred and refundable income taxes 39,955 36,532 Other current assets � 30,102 � � 39,979 � Total current assets � 2,426,940 � � 2,044,383 � � Land, buildings and equipment, net 364,377 337,485 Restricted cash 26,430 20,937 Notes and accounts receivable � long-term 2,103 2,941 Investments in and advances to unconsolidated affiliates 210,168 198,346 Goodwill, net 65,060 53,345 Other intangible assets, net 61,705 61,190 Asbestos-related insurance recovery receivable 287,695 324,588 Other assets 90,934 93,737 Deferred income taxes � 102,154 � � 112,036 � TOTAL ASSETS $ 3,637,566 � $ 3,248,988 � � LIABILITIES, TEMPORARY EQUITY AND SHAREHOLDERS� EQUITY Current Liabilities: Current installments on long-term debt $ 19,490 $ 19,368 Accounts payable 360,675 372,531 Accrued expenses 319,329 331,814 Billings in excess of costs and estimated earnings on uncompleted contracts 835,236 744,236 Income taxes payable � 69,919 � � 55,824 � Total current liabilities � 1,604,649 � � 1,523,773 � � Long-term debt 203,582 185,978 Deferred income taxes 81,139 81,008 Pension, postretirement and other employee benefits 254,308 290,741 Asbestos-related liability 334,142 376,803 Other long-term liabilities and minority interest 203,843 216,916 Commitments and contingencies � � TOTAL LIABILITIES � 2,681,663 � � 2,675,219 � � Temporary Equity: Non-vested restricted awards subject to redemption � 4,892 � � 2,728 � TOTAL TEMPORARY EQUITY � 4,892 � � 2,728 � � Shareholders' Equity: Preferred shares - - Common shares 1,430 1,439 Paid-in capital 1,346,884 1,385,311 Accumulated deficit (127,857 ) (554,595 ) Accumulated other comprehensive loss � (269,446 ) � (261,114 ) TOTAL SHAREHOLDERS� EQUITY � 951,011 � � 571,041 � TOTAL LIABILITIES, TEMPORARY EQUITY � � AND SHAREHOLDERS� EQUITY $ 3,637,566 � $ 3,248,988 � Foster Wheeler Ltd. and Subsidiaries Business Segments (in thousands of dollars) (unaudited) � � � � Fiscal Quarters Ended Fiscal Nine Months Ended September 26, 2008 September 28, 2007 September 26, 2008 September 28, 2007 Global Engineering & Construction Group Backlog - in future revenues $ 5,810,600 $ 4,893,500 $ 5,810,600 $ 4,893,500 New orders booked - in future revenues 955,200 1,572,000 2,308,800 2,875,200 Operating revenues 1,287,405 951,402 3,928,136 2,626,816 EBITDA 122,828 129,232 412,976 395,364 � Foster Wheeler Scope (1): Backlog - in Foster Wheeler Scope 1,754,700 1,645,100 1,754,700 1,645,100 New orders booked - in Foster Wheeler Scope 664,300 697,800 1,814,800 1,547,300 Operating revenues - in Foster Wheeler Scope 637,424 521,543 1,699,445 1,534,621 � Global Power Group Backlog - in future revenues 1,451,600 1,379,600 1,451,600 1,379,600 New orders booked - in future revenues 435,100 306,500 1,165,700 1,403,100 Operating revenues 430,950 348,470 1,286,965 1,014,944 EBITDA 64,753 58,390 197,547 99,780 � Foster Wheeler Scope (1): Backlog - in Foster Wheeler Scope 1,438,700 1,366,500 1,438,700 1,366,500 New orders booked - in Foster Wheeler Scope 432,200 303,000 1,156,900 1,393,500 Operating revenues - in Foster Wheeler Scope 428,006 345,019 1,278,106 1,005,419 � Corporate & Finance Group (2) EBITDA (22,338 ) (8,645 ) (29,532 ) (35,272 ) � Consolidated Backlog - in future revenues 7,262,200 6,273,100 7,262,200 6,273,100 New orders booked - in future revenues 1,390,300 1,878,500 3,474,500 4,278,300 Operating revenues 1,718,355 1,299,872 5,215,101 3,641,760 EBITDA 165,243 178,977 580,991 459,872 � Foster Wheeler Scope (1): Backlog - in Foster Wheeler Scope 3,193,400 3,011,600 3,193,400 3,011,600 New orders booked - in Foster Wheeler Scope 1,096,500 1,000,800 2,971,700 2,940,800 Operating revenues - in Foster Wheeler Scope 1,065,430 866,562 2,977,551 2,540,040 (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 Nine Months Ended Fiscal Twelve Months Ended September 26, 2008 September 28, 2007 September 26, 2008 September 28, 2007 � December 28, 2007 Reconciliation of EBITDA to Net Income EBITDA: Global Engineering & Construction $ 122,828 $ 129,232 $ 412,976 $ 395,364 $ 505,647 Global Power Group 64,753 58,390 197,547 99,780 139,177 Corporate & Finance Group � (22,338 ) � (8,645 ) � (29,532 ) � (35,272 ) � (52,984 ) Consolidated EBITDA 165,243 178,977 580,991 459,872 591,840 Less: Interest expense (5,193 ) (4,716 ) (16,204 ) (14,652 ) (19,855 ) Less: Depreciation/ amortization (1) � (11,080 ) � (9,721 ) � (33,366 ) � (27,120 ) � (41,691 ) Income before income taxes 148,970 164,540 531,421 418,100 530,294 Provision for income taxes � (21,050 ) � (35,439 ) � (104,683 ) � (102,324 ) � (136,420 ) Net income $ 127,920 � $ 129,101 � $ 426,738 � $ 315,776 � $ 393,874 � � Reconciliation of Foster Wheeler Scope Operating Revenues to Operating Revenues � Global Engineering & Construction Group � Foster Wheeler Scope operating revenues $ 637,424 $ 521,543 $ 1,699,445 $ 1,534,621 $ 2,144,199 Flow-through revenues � 649,981 � � 429,859 � � 2,228,691 � � 1,092,195 � � 1,537,060 � Operating revenues � 1,287,405 � � 951,402 � � 3,928,136 � � 2,626,816 � � 3,681,259 � � Global Power Group � Foster Wheeler Scope operating revenues 428,006 345,019 1,278,106 1,005,419 1,413,462 Flow-through revenues � 2,944 � � 3,451 � � 8,859 � � 9,525 � � 12,522 � Operating revenues � 430,950 � � 348,470 � � 1,286,965 � � 1,014,944 � � 1,425,984 � � Consolidated � Foster Wheeler Scope operating revenues 1,065,430 866,562 2,977,551 2,540,040 3,557,661 Flow-through revenues � 652,925 � � 433,310 � � 2,237,550 � � 1,101,720 � � 1,549,582 � Operating revenues $ 1,718,355 � $ 1,299,872 � $ 5,215,101 � $ 3,641,760 � $ 5,107,243 � � � (1) The depreciation / amortization by business segment: Fiscal Quarters Ended Fiscal Nine Months Ended Fiscal Twelve Months Ended � September 26, 2008 September 28, 2007 September 26, 2008 September 28, 2007 � December 28, 2007 Global Engineering & Construction Group $ (5,523 ) $ (4,432 ) $ (16,523 ) $ (11,310 ) $ (17,485 ) Global Power Group (5,190 ) (4,947 ) (15,787 ) (14,784 ) (22,835 ) Corporate & Finance Group � (367 ) � (342 ) � (1,056 ) � (1,026 ) � (1,371 ) Total depreciation / amortization $ (11,080 ) $ (9,721 ) $ (33,366 ) $ (27,120 ) $ (41,691 ) Foster Wheeler Ltd. and Subsidiaries EBITDA, Net Income and Diluted Earnings Per Common Share Reconciliation (in thousands of dollars, except per share amounts) (unaudited) � � � � Fiscal Quarters Ended September 26, 2008 September 28, 2007 � Diluted Earnings Diluted Earnings EBITDA Net Income Per Common Share � EBITDA Net Income Per Common Share As adjusted $ 166,968 $ 129,645 $ 0.89 $ 170,344 $ 120,468 $ 0.83 � Adjustments: Net asbestos-related gain/ (provision) (1,725 ) (1,725 ) $ (0.01 ) 8,633 8,633 $ 0.06 � � � � � � As reported $ 165,243 � $ 127,920 � $ 0.88 � $ 178,977 $ 129,101 $ 0.89 � � Fiscal Nine Months Ended September 26, 2008 September 28, 2007 � Diluted Earnings Diluted Earnings EBITDA Net Income Per Common Share � EBITDA Net Income Per Common Share As adjusted $ 550,253 $ 396,000 $ 2.73 $ 451,239 $ 307,143 $ 2.12 � Adjustments: Net asbestos-related gain 30,738 30,738 0.21 8,633 8,633 0.06 � � � � � � As reported $ 580,991 � $ 426,738 � $ 2.94 � $ 459,872 $ 315,776 $ 2.18 � � Fiscal Twelve Months Ended December 28, 2007 � Diluted Earnings EBITDA Net Income Per Common Share As adjusted $ 585,695 $ 387,729 $ 2.68 � Adjustments: Net asbestos-related gain 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 Nine Months Ended September 26, 2008 2008 Quarterly Average Amount ** � Consolidated Net income $ 393,874 $ 98,469 $ 426,738 $ 142,246 Adjusted net income 387,729 96,932 396,000 132,000 Consolidated EBITDA 591,840 147,960 580,991 193,664 Consolidated EBITDA, as adjusted 585,695 146,424 550,253 183,418 � � Global Engineering & Construction Group New orders booked - in Foster Wheeler Scope $ 2,150,800 $ 537,700 $ 1,814,800 $ 604,933 Operating revenues - in Foster Wheeler Scope 2,144,199 536,050 1,699,445 566,482 Segment EBITDA 505,647 126,412 412,976 137,659 EBITDA margin 23.6 % 23.6 % 24.3 % 24.3 % � � Global Power Group New orders booked - in Foster Wheeler Scope $ 1,996,000 $ 499,000 $ 1,156,900 $ 385,633 Operating revenues - in Foster Wheeler Scope 1,413,462 353,366 1,278,106 426,035 Segment EBITDA 139,177 34,794 197,547 65,849 EBITDA margin 9.8 % 9.8 % 15.5 % 15.5 % * 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 nine-month figures by three.