Results of Operations
The following table sets forth certain items from our Consolidated Statements of Income expressed as a percentage of
Percentage of Revenues
Year ended June 30,
Rent, lease and maintenance
Other operating expenses
Total operating expenses
Other non operating expense (income), net
Income tax expense
Comparison of Fiscal Year 2003 to Fiscal Year 2002
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.