Results of Operations 

The following table sets forth certain items from our Consolidated Statements of Income expressed as a percentage of 

revenues: 

Percentage of Revenues 

Year ended June 30, 

2003 

2002 

2001 

Revenues  

100.0% 

100.0%  

100.0% 

Operating expenses: 

  Wages 

and 

benefits 

 45.3   

 44.1  

 43.8  

  Services 

and 

supplies 

 26.3   

 29.0  

 29.0  

Rent, lease and maintenance 

9.3   

9.1   

  10.8   

 Depreciation 

and 

amortization 

 4.0  

 3.6 

 4.5 

Other operating expenses 

1.4    

1.1 

0.9 

Total operating expenses 

  86.3    

86.9 

89.0 

Operating 

income 

 13.7   

 13.1  

 11.0  

Interest 

expense 

 0.6  

 1.0 

 1.2 

Other non operating expense (income), net 

0.1    

0.3 

    (1.0)   

Pretax profit 

  13.0   

  11.8   

    10.8  

Income tax expense 

4.9    

4.3 

4.2 

Net income 

8.1%   

7.5%  

6.6% 

Comparison of Fiscal Year 2003 to Fiscal Year 2002 

Revenues 

Revenues increased $0.7 billion, or 24%, to $3.8 billion in fiscal year 2003 from $3.1 billion in fiscal year 2002.  Internal 

revenue growth for fiscal year 2003 was 15% and the remaining growth resulted from acquisitions.  

Revenues in our state and local government segment increased $399.9 million to $1.7 billion in fiscal year 2003 from $1.3 

billion in fiscal year 2002, or 31% over the prior year, including the full year impact of the AFSA and Andersen acquisitions.  

Internal revenue growth was 21%, due primarily to new contracts, including contracts with the Texas Health and Human 

Services Commission for fiscal agent and administrative services to support the State's Medicaid traditional fee for service 

program and the Texas Health Network primary care case management and managed care program, New Jersey to operate its 

E ZPass system and State of Ohio to operate its child support collections and disbursement unit, increased revenues from 

violation processing and welfare and community services lines of business and full year impact of the Georgia Medicaid 

contract signed in the fourth quarter of fiscal year 2002.  

Revenues in our commercial segment increased $285.6 million, or approximately 30%.  After adjusting for revenues of 

operations divested in fiscal year 2002 of $33.0 million, internal growth was 17% due primarily to the Motorola and Ingram 

Micro contracts and full year impact of the Ingersoll Rand contract signed in the fourth quarter of fiscal year 2002.  

Acquisition growth in our commercial segment was 17% due primarily to the full year impact of the fiscal year 2002 AFSA 

and Andersen acquisitions. 

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