Reflecting the continued slow economic conditions worldwide, revenues were $270.3 million for
the quarter and $840.4 million for the year, down three percent and seven percent respectively in
U.S. dollars and down seven and ten percent in local currencies.
A focus on tight expense controls, together with the continuing benefits of 2001 management actions to bring the organization in line with the expected 2002 business environment, helped to offset the revenue declines. Operating expenses for the year, excluding non-recurring and restructuring charges, were $770.9 million, a five percent reduction on the prior year period in U.S. dollars, and $63 million or eight percent in
local currency terms. The impact on depreciation and amortization of the adoption of SFAS 142, effective January 1, 2002, accounted for $10 million of this reduction, with the remaining $53 million exceeding the targeted cost savings of $50 million from the 2001 global business restructuring.
EBITDA was $38.4 million for the quarter and $90.7 million for the year, as compared to the prior year of $20.6 million and $59.8 million respectively. Reflecting the continued strong business cash flows, aggressive receivables management and reduced capital expenditures, the firm paid down its credit facilities by more than $34 million from the prior year period. The U.S. dollar reported book value of the firmÃ¢â¬â¢s Eurobonds increased by $26.3 million as a result of the strengthening euro.
Interest expense of $17.0 million was $3.1 million lower than the previous year reflecting the continued pay down of debt together with a generally lower interest rate environment, offset by the strengthening euro. Included in the current year tax expense of $11.0 million is a credit of $1.8 million associated with certain 2001 restructuring expenses, which previously were not considered tax deductible. The 2002 effective tax rate, excluding the impact of the non-recurring and restructuring charges, is 34 percent as compared with 42 percent in 2001.