SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, DC 20549
FORM 12b-25
Commission File Number 1-10308
NOTIFICATION OF LATE FILING
(Check One): o Form 10-K o Form 11-K o Form 20-F X Form 10-Q
o Form N-SAR
For Period Ended: June 30, 1998
o Transition Report on Form 10-K o Transition Report on Form 10-Q
o Transition Report on Form 20-F o Transition Report on Form N-SAR
o Transition Report on Form 11-K
For Transition Period Ended:
Nothing in this form shall be construed to imply that the Commission has
verified any information contained herein.
If the notification relates to a portion of the filing checked above,
identify the item(s) to which the notification relates:
PART 1
REGISTRANT INFORMATION
Full name of registrant Cendant Corporation
Form name if applicable Form 10-Q
Address of principal executive office (Street and number)
6 Sylvan Way
City, state and zip code Parsippany, New Jersey 07054
PART II
RULES 12b-25 (b) AND (c)
If the subject report could not be filed without unreasonable effort or
expense and the registrant seeks relief pursuant to Rule 12b-25(b), the
following should be completed. (Check box if appropriate.)
(a) The reasons described in reasonable detail in Part III of this form
could not be eliminated without unreasonable effort or expense;
X (b) The subject annual report, semi-annual report, transition report on
Form 10-K, 20-F, 11-K or Form N-SAR, or portion thereof will be filed
on or before the 15th calendar day following the prescribed due date;
or the subject quarterly report or transition report on Form 10-Q, or
portion thereof will be filed on or before the fifth calendar day
following the prescribed due date; and
(c) The accountant's statement or other exhibit required by Rule 12b-25(c)
has been attached if applicable.
PART III
NARRATIVE
As a result of the conclusion of the investigation of the Audit Committee of the
Board of Directors into the previously announced accounting irregularities at
the former CUC International Inc. business units (which now comprise the
Company's Alliance Marketing division) on August 13, 1998, Cendant Corporation
(the "Company") was unable to compile the financial information in accordance
with the findings from such investigation and in accordance with Regulation S-X
for filing in the Company's Form 10-Q for the quarter ending June 30, 1998 in a
timely manner.
PART IV
OTHER INFORMATION
(1) Name and telephone number of person to contact in regard to this
notification:
Eric J. Bock (973) 496-7207
(Name) (Area Code) (Telephone Number)
(2) Have all other periodic reports required under Section 13 or 15(d) of the
Securities Exchange Act of 1934 or Section 30 of the Investment Company Act
of 1940 during the preceding 12 months or for such shorter period that the
registrant was required to file such report(s) been filed? If the answer is
no, identify report(s).
X Yes o No
(3) Is it anticipated that any significant change in results of operations
from the corresponding period for the last fiscal year will be reflected by
the earnings statements to be included in the subject report or portion
thereof?
X Yes o No
Please see the attachments 99.1 and 99.2 describing such changes, both
narratively and quantitatively.
Cendant Corporation
(Name of Registrant as Specified in Charter)
Has caused this notification to be signed on its behalf by the undersigned
thereunto duly authorized.
Date August 14, 1998 By: /s/ Scott E. Forbes
Scott E. Forbes
Executive Vice President and
Chief Accounting Officer
Cendant Corporation
EXHIBIT 99.1
CENDANT COMPLETES ACCOUNTING INVESTIGATION
1997, 1996, 1995 Net Income Before One-time Charges
Revised by $0.28, $0.18 and $0.14 Per Share
In Line with Previous Estimates
PARSIPPANY, NJ, August 13, 1998 - Cendant Corporation (NYSE: CD) reported today
that its investigation of accounting irregularities and errors in the CUC
businesses was complete. The 1998 financial results announced today in a
separate release incorporate all relevant information obtained in that
investigation and reflect the correction of accounting policies changed as a
result of its findings. These 1998 results will not be subject to further
revision based on the results of the Company's investigation. Quarterly
financial statements for 1998 and the comparable periods of 1997 will be filed
with the SEC on Form 10-Q on Friday, August 14. Full restated, audited financial
statements for Cendant's fiscal years 1997, 1996 and 1995 will be filed with the
SEC on Form 10-K/A later this month. Furthermore, a full report on the Audit
Committee's investigation of these accounting irregularities will be issued
later this month.
Michael P. Monaco, Vice Chairman and Chief Financial Officer reported "we have
now concluded our investigation of the accounting issues at CUC. Millions of
dollars and hundreds of thousands of hours of work have determined what was
wrong and what must be put right. While we take no joy in reporting these
results, our shareholders should take great comfort from the thoroughness of
this investigation and the fact that we have unflinchingly accepted and reported
its results, even when it uncovered much greater and more systematic fraud than
we had any conception of when we launched this effort in April."
Adjustments for
Reversal of Merger & Unusual Charges
------------------------------------------
Adjustments for Total Previously Reversals New Total
Irregularities and Errors Reported One- of CUC One-Time
Total Time Charges Charges Charges
- ------------------------- ---------------- --------- ---------
1997 ($0.28) ($0.94) $0.32 ($0.62)
1996(0.18) (0.14) 0.02 (0.12)
1995(0.14) (0.08) -- (0.08)
Cendant reported its final calculation of the impact of accounting
irregularities and errors on its 1997, 1996 and 1995 full year results. Cendant
will lower 1997 results by $0.28 per share or $392 million pretax. The net
impact of this restatement plus $0.02 of discontinued operations will lower net
income from continuing operations before one-time merger and other unusual
charges to $0.70 per share versus the $1.00 per share previously reported. A
substantial amount of the adjustment had the impact of reducing revenues.
Cendant also announced a $457 million pre-tax adjustment to the charge
associated with the CUC businesses taken on the date of CUC's merger with HFS on
December 17, 1997. This will increase 1997 net income by $279 million after-tax
or $0.32 per share.
Cendant will lower 1996 results by $0.18 per share. Cendant has also determined
that certain one-time merger charges taken by CUC in 1996 should be reversed and
will eliminate $0.02 per share of these charges. 1995 results will be lowered by
$0.14 per share.
Certain matters discussed in the news release are forward-looking statements, as
defined in the Private Securities Litigation Reform Act of 1995. Such
forward-looking statements are subject to a number of known and unknown risks
and uncertainties including, but not limited to, the outcome of the Audit
Committee's investigation relating to the previously announced accounting
irregularities; the outcome of the pending class action litigation relating to
the previously announced accounting irregularities; uncertainty as to the
Company's future profitability; the Company's ability to develop and implement
operational and financial systems to manage rapidly growing operations;
competition in the Company's existing and potential future lines of business;
the Company's ability to integrate and operate successfully acquired businesses
and the risks associated with such businesses; the Company's ability to obtain
financing on acceptable terms to finance the Company's growth strategy and for
the Company to operate within the limitations imposed by financing arrangements;
uncertainty as to the future profitability of acquired businesses; and other
factors. Other factors and assumptions not identified above were also involved
in the derivation 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. The Company assumes no
obligation to update these forward-looking statements to reflect actual results,
changes in assumptions or changes in other factors affecting such
forward-looking statements.
Cendant (NYSE:CD) is the world's premier provider of consumer and business
services. The Company operates in three principal segments: Travel Services,
Real Estate Services and Alliance Marketing. In Travel Services, Cendant is the
leading franchisor of hotels and rental car agencies worldwide; the largest
provider of vacation exchange services; a leading fleet management company, the
UK's largest private car park operator, and a leading motorist assistance group
in the UK. In Real Estate Services, Cendant is the world's largest franchisor of
residential real estate brokerage offices, a major provider of mortgage services
to consumers and a global leader in corporate employee relocation. In Alliance
Marketing, Cendant provides access to insurance, travel, shopping, auto, and
other services, primarily through direct marketing to customers of its affinity
partners. Headquartered in Parsippany, NJ, the company has more than 40,000
employees and operates in over 100 countries.
Media Contact: Investor Contact:
Cendant Corporation Cendant Corporation
Elliot Bloom David M. Johnson
973-496-8414 or 973-496-7909
Denise L. Gillen
973-496-7303
Kekst and Company
Jim Fingeroth
Roanne Kulakoff
212-521-4800
EXHIBIT 99.2
CENDANT POSTS RECORD 2Q EARNINGS OF $0.23 VS $0.16 PER SHARE, UP 44%
Second Quarter Revenues up 28%
6 Month Results: $0.47 vs $0.28, up 68%
6 Month Revenues up 24%
PARSIPPANY, NJ, August 13, 1998 - Cendant Corporation (NYSE: CD) announced
record second quarter earnings from continuing operations of $0.23 per share for
1998 versus $0.16 per share for 1997, an increase of 44%. 1998 results are
before $0.02 of unusual expenses associated with resolution of accounting
irregularities plus $0.03 of income from reversal of prior restructuring
charges. 1997 results are before merger charges associated with the acquisition
of PHH.
"Our second quarter results demonstrate the depth and quality of our management
team and the strength of Cendant's core business franchises," said Henry R.
Silverman, Chairman, President and CEO. "The past four months have challenged
our operating management to rise to new levels of leadership and productivity in
a period when our most senior executives have devoted the vast majority of their
time to stanching and closing the wound in our company created by the accounting
revelations at CUC. I am fiercely proud of their achievements and the depth of
talent in our management ranks confirmed by these results. Our 28% revenue
growth in continuing operations underlines the momentum of our franchise. Even
after adjusting for acquisitions, our managers delivered mid-teens top-line
growth - a terrific achievement."
"All of our segments performed well in the quarter, led by unparalleled
performance in our real estate segment. Each of the business units we inherited
from HFS performed on or ahead of plan. The carefully laid out strategy built
over eight years at HFS is yielding its greatest rewards this year. These
businesses yielded 50% plus growth in both EBITDA and net income in the second
quarter, continuing the strong performance of the first quarter. We see no signs
that any of these businesses will fail to meet our high expectations for the
rest of the year," reported Mr. Silverman.
"We are now able to evaluate and manage performance at the CUC business units,"
Mr. Silverman continued. "With consumer software and Hebdo Mag discontinued, our
CUC operations are largely centered in Alliance Marketing. Two of the three
major units in Alliance Marketing produced solid gains versus 1997 results. We
are particularly pleased with the strong EBITDA growth in our
Insurance/Wholesale businesses, which generated approximately $44 million in
EBITDA in the second quarter, an increase of 36%. This unit contributed the
majority of our 1998 Alliance Marketing earnings to date and should continue to
account for most of its profits in the future. Individual Membership also
generated sizable EBITDA gains from price increases and membership growth,
generating a four times increase in EBITDA in the second quarter."
"Our ability to report fundamental growth in Individual Membership encourages us
to believe that these units, under proper management and with appropriate
financial controls, can offer significant upside potential to our shareholders
in the future. The relatively flat comparison in the lifestyle portion of
Alliance Marketing masks significant variations in the performance of the many
small businesses in that subsegment. We will rapidly move to address these
issues - businesses that do not meet Cendant standards of performance will be
restructured," Mr. Silverman concluded.
The Company also reported its investigation of accounting irregularities and
errors in the CUC businesses was complete and in line with previously announced
estimates. The financial results announced today incorporate all relevant
information obtained in that investigation and reflect the correction of
accounting policies changed as a result of its findings. A separate press
release will discuss the findings in more detail. Cendant also announced
yesterday that it has classified its Hebdo Mag and consumer software units as
discontinued operations. Therefore, all periods presented have been adjusted
appropriately.
For the first six months of 1998, Cendant reported income from continuing
operations of $0.47 per share versus $0.28 in 1997, an increase of 68%. Revenues
increased 24% to $2.5 billion. Results for the first quarter of 1998 have been
restated to correct errors in revenue recognition at businesses of the former
CUC International ("CUC"). The net impact of implementing these policies will
lower 1998 first quarter results from continuing operations from those
previously reported by $0.04 per share. 1997 results are before merger charges
associated with the acquisition of PHH.
Certain matters discussed in the news release are forward-looking statements, as
defined in the Private Securities Litigation Reform Act of 1995. Such
forward-looking statements are subject to a number of known and unknown risks
and uncertainties including, but not limited to, the outcome of the Audit
Committee's investigation relating to the previously announced accounting
irregularities; the outcome of the pending class action litigation relating to
the previously announced accounting irregularities; uncertainty as to the
Company's future profitability; the Company's ability to develop and implement
operational and financial systems to manage rapidly growing operations;
competition in the Company's existing and potential future lines of business;
the Company's ability to integrate and operate successfully acquired businesses
and the risks associated with such businesses; the Company's ability to obtain
financing on acceptable terms to finance the Company's growth strategy and for
the Company to operate within the limitations imposed by financing arrangements;
uncertainty as to the future profitability of acquired businesses; and other
factors. Other factors and assumptions not identified above were also involved
in the derivation 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. The Company assumes no
obligation to update these forward-looking statements to reflect actual results,
changes in assumptions or changes in other factors affecting such
forward-looking statements.
Cendant (NYSE:CD) is the world's premier provider of consumer and business
services. The Company operates in three principal segments: Travel Services,
Real Estate Services and Alliance Marketing. In Travel Services, Cendant is the
leading franchisor of hotels and rental car agencies worldwide; the largest
provider of vacation exchange services; a leading fleet management company, the
UK's largest private car park operator, and a leading motorist assistance group
in the UK. In Real Estate Services, Cendant is the world's largest franchisor of
residential real estate brokerage offices, a major provider of mortgage services
to consumers and a global leader in corporate employee relocation. In Alliance
Marketing, Cendant provides access to insurance, travel, shopping, auto, and
other services, primarily through direct marketing to customers of its affinity
partners. Headquartered in Parsippany, NJ, the company has more than 40,000
employees and operates in over 100 countries.
Media Contact: Investor Contact:
Cendant Corporation Cendant Corporation
Elliot Bloom David M. Johnson
973-496-8414 or 973-496-7909
Denise L. Gillen
973-496-7303
Kekst and Company
Jim Fingeroth
Roanne Kulakoff
212-521-4800
Tables Follow
9
Second Quarter Financial Results - As Reported
(In millions, except per share amounts)
The following information includes: (a) a second quarter 1998 one-time
restructuring charge reversal of $29 million after tax, or $0.03 per share (b)
certain 1998 expenses arising from resolution of the company's accounting issues
($20.4 million after tax, or $0.02 per share) and (c) a second quarter 1997
one-time charge related to the PHH merger with HFS of $300 million ($225 million
after tax, or $0.25 per share)
Quarter Ended June 30,
------------------------
% change
1998 1997 vs 2Q97
-------- -------- --------
Revenues $1,306.3 $1,024.0 28
Expenses 959.1 1,076.6 (11)
-------- --------
Income before Income Taxes
And Minority Interest $347.2 $(52.6) --
Income (Loss) Continuing Operations $214.5 $(87.9) --
Loss Discontinued Operations (1) $(3.6) $(4.4) --
Income (Loss) $210.9 $(92.3) --
EBITDA - Continuing Operations (2) $445.6 $313.6 42
Earnings per share
Diluted
Continuing Operations $0.24 $(0.11) --
Discontinued Operations 0.00 0.00 --
------ ------
Net Income $0.24 $(0.11) --
Basic
Continuing Operations $0.24 $(0.11) --
Discontinued Operations 0.00 0.00 --
------ ------
Net Income $0.24 $(0.11) --
Weighted Average shares -
Diluted 900.9 804.2 12
(1) Discontinued operations are Hebdo Mag classified advertising unit plus the
Cendant Software consumer education and entertainment software unit.
(2) Earnings Before Interest, Taxes, Depreciation and Amortization
Second Quarter Financial Results - Adjusted
(In millions, except per share amounts)
The following information excludes: (a) a second quarter 1998 one-time
restructuring charge reversal of $29 million after tax, or $0.03 per share (b)
certain 1998 expenses arising from resolution of the company's accounting issues
($20.4 million after tax, or $0.02 per share) and (c) a second quarter 1997
one-time charge related to the PHH merger with HFS of $300 million ($225 million
after tax, or $0.25 per share),
Quarter Ended June 30,
-----------------------
% change
1998 1997 vs 2Q97
-------- -------- --------
Revenues $1,306.3 $1,024.0 28
Expenses 968.9 777.0 25
-------- --------
Income before Income Taxes
And Minority Interest $337.4 $247.0 37
Income Continuing Operations $205.5 $136.8 50
Loss Discontinued Operations (1) $(3.6) $(4.4) --
Income $201.9 $132.4 52
EBITDA - Continuing Operations (2) $445.6 $313.6 42
Earnings per share
Diluted
Continuing Operations $0.23 $0.16 44
Discontinued Operations 0.00 0.00 --
------ -----
Net Income $0.23 $0.16 44
Basic
Continuing Operations $0.24 $0.17 41
Discontinued Operations 0.00 (0.01) --
------ -----
Net Income $0.24 $0.16 50
Weighted Average shares -
Diluted 900.9 879.3 2
(1) Discontinued operations are Hebdo Mag classified advertising unit plus the
Cendant Software consumer education and entertainment software unit.
(2) Earnings Before Interest, Taxes, Depreciation and Amortization
First Half Financial Results - As Reported
(In millions, except per share amounts)
The following information includes: (a) a second quarter 1998 one-time
restructuring charge reversal of $29 million after tax, or $0.03 per share (b)
certain 1998 expenses arising from resolution of the company's accounting issues
($20.4 million after tax, or $0.02 per share) and (c) a second quarter 1997
one-time charge related to the PHH merger with HFS of $300 million ($225 million
after tax, or $0.25 per share)
Six Months Ended June 30,
-------------------------
% change
1998 1997 vs 1H97
--------- -------- --------
Revenues $2,461.2 $1,981.8 24
Expenses 1,782.7 1,847.2 (3)
------- -------
Income before Income Taxes
And Minority Interest $678.5 $134.6 --
Income Continuing Operations $430.0 $12.5 --
Income Discontinued Operations (1) $(16.2) $(1.5) --
Income $413.8 $11.0 --
EBITDA - Continuing Operations (2) $875.9 $563.2 56
Earnings (Loss) per share
Diluted
Continuing Operations $0.48 $0.02 --
Discontinued Operations (0.02) (0.01) --
------ -----
Net Income $0.46 $0.01 --
Basic
Continuing Operations $0.51 $0.02 --
Discontinued Operations (0.02) (0.01) --
----- -----
Net Income $0.49 $0.01 --
Weighted Average shares -
Diluted 907.8 803.2 13
(1) Discontinued operations are Hebdo Mag classified advertising unit plus the
Cendant Software consumer education and entertainment software unit.
(2) Earnings Before Interest, Taxes, Depreciation and Amortization
First Half Financial Results - Adjusted
(In millions, except per share amounts)
The following information excludes: (a) a second quarter 1998 one-time
restructuring charge reversal of $29 million after tax, or $0.03 per share (b)
certain 1998 expenses arising from the investigation of the company's accounting
issues ($20.4 million after tax, or $0.02 per share) and (c) a second quarter
1997 one-time charge related to the PHH merger with HFS of $300 million ($225
million after tax, or $0.25 per share)
Six Month Ended June 30,
------------------------
% change
1998 1997 vs 1H97
---- ---- -------
Revenues $2,461.2 $1,981.8 24
Expenses 1,777.4 1,547.8 15
------- -------
Income before Income Taxes
And Minority Interest $683.8 $434.0 58
Income Continuing Operations $421.0 $237.3 77
Income (Loss) Discontinued Operations (1) $(16.2) $(1.5) --
Net Income $404.8 $235.8 72
EBITDA - Continuing Operations (2) $875.9 $563.2 56
Earnings (Loss) per share
Diluted
Continuing Operations $0.47 $0.28 68
Discontinued Operations (0.02) 0.00 --
---- ----
Net Income $0.45 $0.28 61
Basic
Continuing Operations $0.50 $0.30 67
Discontinued Operations (0.02) 0.00 --
----- ----
Net Income $0.48 $0.30 60
Weighted Average shares -
Diluted 907.8 878.4
(1) Discontinued operations are Hebdo Mag classified advertising unit plus the
Cendant Software consumer education and entertainment software unit.
(2) Earnings Before Interest, Taxes, Depreciation and Amortization
SECOND QUARTER RESULTS BY SEGMENT*
(Dollars in millions)
REVENUE EBITDA (2) EBITDA MARGIN
------------------------ ---------------------- ----------------
1998 1997 % 1998 1997 % 1998 1997
------ ------ --- ----- ----- --- ------ ----
TRAVEL
Lodging $117.2 $108.1 8 $63.7 $51.4 24 54 48
Timeshare 94.0 85.3 10 33.3 27.4 21 35 32
Car Rental 48.2 38.6 25 32.1 25.2 27 67 65
Fleet 80.8 65.7 23 37.2 28.2 32 46 43
Other (ETS, NPC) 135.0 22.0 515 30.3 7.9 285 22 36
------ ------ ------ ------
TOTAL $475.2 $319.7 49 $196.5 $140.1 40 41 44
REAL ESTATE
Franchise $131.5 $83.7 57 $102.7 $57.3 79 78 68
Relocation 110.2 103.4 7 26.5 27.2 -3 24 26
Mortgage 94.0 42.5 121 44.6 19.9 124 48 47
Other 19.2 17.2 11 2.7 2.5 8 14 15
------ ------ ------ ------
TOTAL $354.9 $246.8 44 $176.5 $106.9 65 50 43
ALLIANCE
MARKETING
Individual $206.2 $167.3 23 $21.1 $5.4 291 10 3
Wholesale/Insurance 138.7 129.4 7 43.5 31.9 36 31 25
Lifestyle 66.7 59.2 13 -8.4 -11.7 28 -13 -20
------ ------ ----- -----
TOTAL $411.6 $355.9 16 $56.2 $25.6 120 14 7
OTHER $64.6 $101.6 -36 $16.4 $41.0 -60 25 40
TOTAL
CONTINUING OPERATIONS $1,306.3 $1,024.0 28 $445.6 $313.6 42 34 31
DISCONTINUED
OPERATIONS (1)
Software $130.5 $50.8 157 $0.7 -$4.5 -- 1 -9
Hebdo Mag 74.4 48.9 52 23.8 11.7 103 32 24
------ ----- ----- -----
TOTAL $204.9 $99.7 105 $24.5 $7.2 238 12 7
TOTAL $1,511.2 $1,123.7 34 $470.1 $320.8 47 31 29
*Excludes results of one-time merger and unusual charges in 1997 plus other
unusual expenses associated with resolution of accounting issues in 1998.
Discontinued operations are Hebdo Mag classified advertising unit plus the
Cendant Software consumer education and entertainment software unit. Earnings
Before Interest, Taxes, Depreciation and Amortization
FIRST HALF RESULTS BY SEGMENT*
(Dollars in millions)
REVENUE EBITDA (2) EBITDA MARGIN
------------------------ ----------------------- --------------
1998 1997 % 1998 1997 % 1998 1997
------ ------ ---- ------ ----- ---- ---- ----
TRAVEL
Lodging $211.9 $198.0 7 $114.5 $94.5 21 54 48
Timeshare 200.4 179.0 12 75.3 55.7 35 38 31
Car Rental 93.2 73.1 27 62.9 45.6 38 67 62
Fleet 163.6 146.6 12 79.1 64.0 24 48 44
Other (ETS, NPC) 153.9 39.4 291 32.9 12.2 170 21 31
------ ------ ------ ------
TOTAL $822.9 $636.1 29 $364.6 $272.0 34 44 43
REAL ESTATE
Franchise $215.8 $139.1 55 $161.1 $86.2 87 75 62
Relocation 209.9 188.7 11 53.7 43.1 25 26 23
Mortgage 172.0 76.1 126 81.9 34.1 140 48 45
Other 36.3 34.0 7 3.8 4.4 -14 11 13
------ ------ ------ ------
TOTAL $634.0 $437.9 45 $300.5 $167.8 79 47 38
ALLIANCE
MARKETING
Individual $393.7 $335.6 17 $43.0 $12.9 233 11 4
Wholesale/Insurance 274.5 246.0 12 85.2 57.8 47 31 23
Lifestyle 133.9 132.4 1 -22.8 -9.5 -- -17 -7
------ ------ ------ -----
TOTAL $802.1 $714.0 12 $105.3 $61.2 72 13 9
OTHER $202.2 $193.9 4 $105.4 $62.2 69 52 32
TOTAL
CONTINUING OPERATIONS $2,461.2 $1,981.8 24 $875.9 $563.2 56 36 28
DISCONTINUED
OPERATIONS (1)
Software $226.3 $115.1 97 -$19.3 $1.4 -- -9 1
Hebdo Mag 137.2 94.5 45 39.5 23.9 65 29 25
------ ------ ----- -----
TOTAL $363.5 $209.6 73 $20.2 $25.3 -20 6 12
TOTAL $2,824.8 $2,191.4 29 $896.0 $588.5 52 32 27
*Excludes results of one-time merger and unusual charges in 1997 plus other
unusual expenses associated with resolution of accounting issues in 1998.
Discontinued operations are Hebdo Mag classified advertising unit plus the
Cendant Software consumer education and entertainment software unit. Earnings
Before Interest, Taxes, Depreciation and Amortization
