Click here for Printer Friendly Version
LINCOLNSHIRE, Ill.--(BUSINESS WIRE)--Feb. 5, 2008--Hewitt
Associates, Inc. (NYSE:HEW), a global human resources services
company, today reported results for its fiscal 2008 first quarter
ended December 31, 2007.
- Reported net revenues (revenues before reimbursements)
increased 9% in the first quarter, to $793.8 million, from
$726.6 million in the prior-year quarter. Consulting revenues
increased 18%, Human Resources Business Process Outsourcing
(HR BPO) revenues increased 11% and Benefits Outsourcing
revenues increased 4%.
- Operating income for the first quarter was $108.9 million,
compared with $46.5 million in the prior-year quarter. The
improvement reflects a $5 million pretax benefit due to the
resolution of a previously announced HR BPO contract
restructuring in the current quarter, as well as a $16 million
pretax severance charge in the prior-year quarter. Adjusting
for these items, operating income for the current quarter was
$103.5 million, compared with $62.2 million in the prior-year
quarter.(1)
- Net income for the first quarter was $63.9 million, or $0.59
per diluted share, compared with net income of $30.1 million,
or $0.27 per diluted share in the prior-year period.
- As of February 1, under its $750 million share repurchase
authorization, the Company had repurchased approximately 13.4
million of its outstanding common shares, for a total of
approximately $454 million.
First Quarter Highlights
"The first quarter was a great start to our fiscal year," said
Russ Fradin, chairman and chief executive officer. "Our Consulting
business continued to generate healthy top-line growth, and our
Benefits Outsourcing business gained revenue momentum and achieved
strong margin growth."
"We were also pleased to see the loss from our HR BPO business
narrowing. We continue to manage through some sensitive client
situations but, overall, we continue to think this will be a year of
solid progress in that business."
Operating Performance
Reported net revenues of $793.8 million in the first quarter
included a $17 million benefit from net foreign currency translation,
a $12 million benefit due to the resolution of a previously announced
HR BPO contract restructuring, and a $4 million contribution from
acquisitions. After adjusting for these items, and excluding
third-party supplier revenues, net revenues increased 6%.
Reported operating income of $108.9 million in the first quarter
included a $5 million pretax benefit due to the resolution of a
previously announced HR BPO contract restructuring. The prior-year
period included a $16 million pretax severance charge. Adjusting for
these items, operating income grew 66%.
Business Segment Results
In the second quarter of fiscal 2007, the Company modified how
certain costs are allocated, impacting the reported operating income
of each segment, as well as reducing the overall level of unallocated
shared service costs. Prior-year segment results have been presented
on an adjusted basis to assist in comparability.
Benefits Outsourcing
Benefits Outsourcing reported segment revenues increased 4% in the
first quarter, to $403.3 million, from $387.4 million in the
prior-year quarter. Adjusting for benefits related to the resolution
of a previously announced HR BPO contract restructuring of $5 million,
acquisitions of approximately $3 million and the favorable effects of
foreign currency translation of $2 million, Benefits Outsourcing
revenues increased 2%. The revenue increase is principally due to
increased project work as compared to the prior-year period.
Benefits Outsourcing reported segment income increased 52% in the
first quarter, to $120.2 million, compared with $78.8 million in the
prior-year quarter. Benefits Outsourcing segment margin was 29.8%,
compared with 20.3% in the prior-year quarter. Segment income growth
over the prior-year period was primarily due to an increase in higher
margin project revenue and a decrease in compensation expense
associated with lower severance and lower compensation costs.
First quarter fiscal 2008 segment operating income included a $2
million pretax benefit related to the resolution of a previously
announced HR BPO contract restructuring. First quarter fiscal 2007
segment operating income included an $8 million pretax severance
charge. Adjusting for these items, Benefits Outsourcing segment income
increased 36%.
As of December 31, 2007, the Company was live with approximately
18.8 million end-user benefits participants, compared with
approximately 18.7 million as of December 31, 2006.
Human Resources Business Process Outsourcing
HR BPO reported segment revenues increased 11% in the first
quarter, to $148.3 million, from $133.5 million in the prior-year
quarter. Adjusting for benefits related to the resolution of a
previously announced HR BPO contract restructuring of $8 million, the
favorable effects of foreign currency translation of $4 million, and
excluding third-party supplier revenues, HR BPO revenues increased
10%. The revenue growth is primarily related to an increase in clients
who went live with contract services over the last twelve months and
higher revenue from existing clients, including an increase in project
work.
The HR BPO reported segment loss was $27.3 million in the first
quarter, compared with a loss of $42.2 million in the prior-year
quarter. The decrease in the loss was primarily due to an increase in
revenue. Lower severance and compensation expenses were partially
offset by higher SG&A, mostly due to charges related to client
disputes and settlements.
First quarter fiscal 2008 segment operating loss included a $3
million pretax benefit related to the resolution of a previously
announced HR BPO contract restructuring. First quarter fiscal 2007
segment operating loss results included a $4 million pretax severance
charge. Adjusting for these items, the HR BPO segment loss was $30.3
million, compared with a loss of $38.2 million in the prior-year
quarter.
As of December 31, 2007, the Company was live with approximately
962,000 client employees with HR BPO services, compared with
approximately 764,000 as of December 31, 2006.
Consulting
Consulting reported segment revenues increased 18% in the first
quarter, to $254.4 million, from $214.9 million in the prior-year
quarter. Adjusting for the favorable effects of foreign currency
translation of $11 million, and the effects of acquisitions of
approximately $1 million, Consulting revenues increased 13%. This
growth principally resulted from increased demand in Europe and North
America for Retirement and Financial Management services. Also
contributing to the revenue growth was increased demand for Talent and
Organizational Consulting services across all major geographies, as
well as strong demand for Communication and Health Management services
in North America.
Consulting reported segment income increased 17% in the first
quarter, to $36.4 million, compared with $31.1 million in the
prior-year quarter. Consulting segment margin was 14.3%, compared with
14.5% in the prior-year quarter. The segment income increase was
primarily driven by revenue growth, offset by higher compensation
expense related to increased wages and performance-based incentives.
Unallocated Shared Service Costs
Unallocated shared service costs were $20.4 million, or 2.6% of
net revenues, in the first quarter, compared with $21.2 million, or
2.9% of net revenues, in the prior-year quarter. The decrease in
expenses was primarily a result of lower severance, partially offset
by increased professional services fees. Adjusting for $3 million in
prior-year severance, unallocated shared service costs, as a
percentage of net revenue, remained flat compared to the prior-year
quarter.
Cash Flow
Reported cash flow from operations decreased to $13.6 million in
the first quarter, compared to $15.5 million in the prior-year
quarter. Free cash flow, defined as cash flow from operations less
investments (capital expenditures and capitalized software costs), was
negative $9.8 million, compared with negative $5.8 million in the
prior year. The decrease in free cash flow was driven primarily by
higher performance-based compensation paid in the current period for
fiscal 2007 performance, as compared to the prior-year payment for
fiscal 2006 performance.
Earnings Before Interest, Taxes, Depreciation and Amortization
(EBITDA), a non-GAAP measure, increased to $147 million in the first
quarter, compared to $107 million in the prior-year quarter. After
including adjustments for non-cash items such as goodwill and asset
impairment, revenue and compensation deferrals, stock-based
compensation, and deferred internal software development costs, and
other non-cash items, adjusted EBITDA(2) increased to $157 million in
the first quarter, compared to $100 million in the prior-year quarter.
The adjusted EBITDA improvement was primarily due to increased
operating profits, lower cash outflows due to more live HR BPO
clients, and higher implementation revenues.
Share Repurchase
During the fiscal 2008 first quarter, the Company repurchased
approximately 4.6 million of its outstanding common shares at an
average price of $37.01 per share, for a total of approximately $170
million. Since January 1, 2008, the Company has repurchased an
additional 2.8 million shares at an average price of $35.96 per share,
for a total of approximately $100 million, bringing total activity
under the $750 million authorization to $454 million.
Supplemental Information
On January 31, 2008, the Company closed on the previously
announced sale of assets related to its Cyborg business, a licensed
payroll and HR software services organization acquired in 2003. The
Company anticipates recording a pretax gain of approximately $36
million during the fiscal second quarter ending March 31, 2008.
The divestiture is a part of the Company's continued efforts to
streamline its HR outsourcing service offerings and focus on managed,
end-to-end payroll solutions. The Company will retain and continue to
provide managed payroll services for its existing HR BPO clients and
will license the formerly-owned software for those clients already on
the platform, as well as for certain Hewitt internal operations.
Cyborg's operations are included in the Company's HR BPO segment.
Business Outlook
The Company reaffirms its fiscal 2008 guidance previously issued
on November 12, 2007.
"We are off to a strong start in the fiscal year but given that we
have only completed one quarter, our full year guidance remains
unchanged," said John Park, chief financial officer. "It's worth
noting that we are maintaining our fiscal 2008 guidance despite
absorbing what we expect will be about six cents per share in dilution
from the divestiture of Cyborg over the balance of the year."
In addition to reporting results in accordance with accounting
principles generally accepted in the U.S., the Company assesses its
performance once unusual items have been removed. As such, the
guidance reflects the following expectations for fiscal 2008 on an
underlying basis, excluding the impact of unusual items in both years:
- Mid-single digit total Company net revenue growth;
- Underlying operating income of approximately $300 million to
$315 million; and
- Underlying earnings per share of $1.70 to $1.80.
The Company's guidance assumes continued execution of its share
repurchase program. The guidance excludes anticipated real estate
charges of approximately $35 million to $45 million and the expected
one-time gain on the Cyborg sale in the second fiscal quarter.
Conference Call
At 7:30 a.m. (CT) today, management will host a conference call
with investors to discuss fiscal 2008 first quarter results. The live
presentation is accessible through the Investor Relations section of
Hewitt's web site at www.hewitt.com. The webcast will be archived on
the site for approximately one month.
About Hewitt Associates
For more than 65 years, Hewitt Associates (NYSE:HEW) has provided
clients with best-in-class human resources consulting and outsourcing
services. Hewitt consults with more than 3,000 large and mid-size
companies around the globe to develop and implement HR business
strategies covering retirement, financial and health management;
compensation and total rewards; and performance, talent and change
management. As a market leader in benefits administration, Hewitt
delivers health care and retirement programs to millions of
participants and retirees, on behalf of more than 300 organizations
worldwide. In addition, more than 30 clients rely on Hewitt to provide
a broader range of human resources business process outsourcing
services to nearly a million client employees. Located in 33
countries, Hewitt employs approximately 23,000 associates. For more
information, please visit www.hewitt.com.
Forward-Looking Information
This presentation contains forward-looking statements within the
meaning of the Private Securities Litigation Reform Act of 1995. Such
statements are based upon the current beliefs and expectations of
Hewitt's management and are subject to significant risks and
uncertainties. Actual results may differ from those set forth in the
forward-looking statements. Factors that could cause actual results to
differ materially from those expressed or implied include general
economic conditions and the factors discussed under the "Risk Factors"
heading in the Business section of the Company's most recent annual
report on Form 10-K filed with the Securities and Exchange Commission
("SEC") and available at the SEC's internet site (http://www.sec.gov).
Hewitt disclaims any obligation to publicly update or revise any
forward-looking statements, whether as a result of new information,
future events, or any other reason.
(1) In assessing operating performance, the Company also reviews
its results once all unusual adjustments have been removed. The
Company believes that doing so provides a better understanding of
underlying operating performance. A reconciliation of underlying
operating income to GAAP for fiscal first quarters 2008 and 2007 is
included in this press release.
(2) In assessing operating performance, the Company also reviews
its results once all unusual adjustments have been removed. The
Company believes that doing so provides a better understanding of
underlying operating performance. A reconciliation of adjusted EBITDA
to GAAP for fiscal first quarters 2008 and 2007 is included in this
press release.
HEWITT ASSOCIATES, INC.
CONSOLIDATED STATEMENTS OF OPERATIONS
(Unaudited)
(In thousands except for share and per share amounts)
Three Months Ended
December 31,
---------------------------
2007 2006 % Change
------------- ------------- ----------
Revenues:
Revenues before
reimbursements (net
revenues) $ 793,843 $ 726,630 9.2%
Reimbursements 25,149 19,420 29.5%
------------- -------------
Total revenues 818,992 746,050 9.8%
------------- -------------
Operating expenses:
Compensation and related
expenses 494,125 486,800 1.5%
Asset impairment 225 956 (76.5)%
Reimbursable expenses 25,149 19,420 29.5%
Other operating expenses 140,530 153,879 (8.7)%
Selling, general and
administrative expenses 50,030 38,462 30.1%
------------- -------------
Total operating expenses 710,059 699,517 1.5%
------------- -------------
Operating income 108,933 46,533 134.1%
Other income, net
Interest expense (3,744) (5,376) 30.4%
Interest income 8,598 6,944 23.8%
Other (expense) income, net (384) 827 (146.4)%
------------- -------------
Total other income, net 4,470 2,395 86.6%
------------- -------------
Income before income taxes 113,403 48,928 131.8%
Provision for income taxes 49,456 18,863 162.2%
------------- -------------
Net income $ 63,947 $ 30,065 112.7%
============= =============
Earnings per share:
Basic $ 0.61 $ 0.28
Diluted $ 0.59 $ 0.27
Weighted average shares:
Basic 104,777,402 109,036,948
Diluted 109,494,279 110,616,767
HEWITT ASSOCIATES, INC.
UNDERLYING OPERATING INCOME AND EARNINGS PER SHARE
(Unaudited)
(In thousands except for share and per share amounts)
In assessing operating performance, the Company also reviews its
results once all unusual adjustments have been removed. The Company
believes that doing so provides a better understanding of underlying
operating performance. For the three months ended December 31, 2007
and December 31, 2006, underlying operating income and earnings per
share were:
Underlying Operating Income and Earnings Three Months Ended
Per Share December 31,
--------------------------
2007 2006
------------- ------------
Operating income, as Reported $ 108,933 $ 46,533
Adjustments:
Severance - 15,681
HR BPO contract restructuring (1) (5,384) -
------------- ------------
Total Adjustments (5,384) 15,681
Underlying operating income 103,549 62,214
Other income, net 4,470 2,396
------------- ------------
Underlying other income, net 4,470 2,396
Underlying pretax income 108,019 64,610
Provision for income taxes (normalized at
40.2% for Q1 FY08 and 39% for Q1 FY07)
(2) 43,424 25,198
------------- ------------
Underlying net income $ 64,595 $ 39,412
============= ============
Underlying earnings per share:
Basic $ 0.62 $ 0.36
Diluted (3) $ 0.60 $ 0.36
Adjusted shares outstanding (4):
Basic 104,777,402 109,036,948
Diluted (5) 109,494,279 112,487,515
(1) Recognized operating income contribution resulting from a HR BPO
contract restructuring.
(2) The Company used an effective tax rate of 40.2% and 39% for Q1
2008 and Q1 2007, respectively, for its underlying net income
calculation. The Company believes this yields a tax calculation
closest to its expectations excluding significant unusual charges
in each respective quarter. The effective tax rate applied to the
underlying pretax income in the current year period is higher than
that of the comparable prior-year period due to an increase in
income from higher tax jurisdictions in the current period.
(3) Per FAS 128, the diluted EPS calculation includes an addback of
$963 of interest expense on the convertible debt securities.
(4) Weighted average basic adjusted
shares outstanding at Dec. 31, 2007 104,777,402
Number of shares added to outstanding
Stock options 1,993,873
Restricted stock 852,256
Convertible debentures 1,870,748
--------------
Total adjusted diluted shares 109,494,279
Weighted average basic adjusted shares
outstanding at Dec. 31, 2006 109,036,948
Number of shares added to outstanding
Stock options 1,056,833
Restricted stock 522,986
Convertible debentures 1,870,748
--------------
Total adjusted diluted shares 112,487,515
Diluted shares outstanding reflect the potential dilution that could
occur if securities or other instruments that are convertible into
common stock were exercised or could result in the issuance of
common stock. Potentially dilutive common stock equivalents include
unvested restricted stock and restricted stock units, unexercised
stock options and warrants that are "in-the-money" and outstanding
convertible debt securities which would have a dilutive effect if
converted from debt to common stock.
(5) Debt securities convertible into 1,870,748 shares of Class A
common stock were outstanding in the periods ended December 31,
2007 and December 31, 2006. The convertible shares were included in
the computation of underlying diluted earnings per share for that
period because the effect of including the convertible debt
securities would be dilutive.
HEWITT ASSOCIATES, INC.
BUSINESS SEGMENT RESULTS
(Unaudited)
(In thousands)
Business Segments Three Months Ended
December 31,
---------------------
2007 2006 % Change
---------- ---------- ---------
Benefits Outsourcing(1)
Segment revenues before reimbursements $403,338 $387,370 4.1%
Segment income 120,180 78,829 52.5%
Segment income as a percentage of
segment revenues 29.8% 20.3%
HR BPO(1)
Segment revenues before reimbursements
(2) $148,271 $133,487 11.1%
Segment loss (27,265) (42,197) 35.4%
Segment loss as a percentage of
segment revenues (18.4)% (31.6)%
Consulting (1)
Segment revenues before reimbursements $254,374 $214,895 18.4%
Segment income 36,436 31,145 17.0%
Segment income as a percentage of
segment revenues 14.3% 14.5%
Total Company
Segment revenues before reimbursements $805,983 $735,752 9.5%
Intersegment revenues (12,140) (9,122) 33.1%
---------- ----------
Revenues before reimbursements (net
revenues) 793,843 726,630 9.2%
Reimbursements 25,149 19,420 29.5%
---------- ----------
Total revenues $818,992 $746,050 9.8%
========== ==========
Segment income $129,351 $ 67,777 90.8%
Charges not recorded at the segment
level:
Unallocated shared services costs
(1) 20,418 21,244 3.9%
---------- ----------
Operating income $108,933 $ 46,533 134.1%
========== ==========
(1) Prior year results have been reclassified to conform with the
current year presentation. See www.hewitt.com for additional
information.
(2) HR BPO net revenues include $13,180 and $21,071 of third-party
supplier revenues for the three months ended December 31, 2007 and
2006, respectively. The third-party supplier arrangements are
generally marginally profitable. The related third-party supplier
expenses are included in other operating expenses.
HEWITT ASSOCIATES, INC.
CONSOLIDATED BALANCE SHEETS
(Unaudited)
(In thousands except for share and per share amounts)
December 31, September 30,
2007 2007
-------------- ---------------
(Unaudited)
ASSETS
Current Assets:
Cash and cash equivalents $ 345,910 $ 378,743
Short-term investments 83,101 216,726
Client receivables and unbilled work
in process, less allowances of
$19,750 and $18,933 at December 31,
2007 and September 30, 2007,
respectively 671,617 632,011
Prepaid expenses and other current
assets 97,539 86,683
Funds held for clients 117,785 133,163
Deferred income taxes, net 35,780 32,533
-------------- ---------------
Total current assets 1,351,732 1,479,859
-------------- ---------------
Non-Current Assets:
Deferred contract costs 378,500 372,363
Property and equipment, net 360,582 355,907
Other intangible assets, net 189,428 196,133
Goodwill 314,711 319,314
Other non-current assets, net 43,669 31,962
-------------- ---------------
Total non-current assets 1,286,890 1,275,679
-------------- ---------------
Total Assets $ 2,638,622 $ 2,755,538
============== ===============
LIABILITIES
Current Liabilities:
Accounts payable $ 18,165 $ 21,304
Accrued expenses 197,549 212,097
Funds held for clients 117,785 133,163
Advanced billings to clients 204,780 170,131
Accrued compensation and benefits 265,087 353,265
Short-term debt 32,527 30,369
Current portion of long-term debt and
capital lease obligations 24,407 24,222
-------------- ---------------
Total current liabilities 860,300 944,551
-------------- ---------------
Non-Current Liabilities:
Deferred contract revenues 285,718 271,359
Debt and capital lease obligations,
less current portion 231,793 233,465
Other non-current liabilities 202,849 165,264
Deferred income taxes, net 122,651 102,887
-------------- ---------------
Total non-current liabilities 843,011 772,975
-------------- ---------------
Total Liabilities $ 1,703,311 $ 1,717,526
-------------- ---------------
HEWITT ASSOCIATES, INC.
CONSOLIDATED BALANCE SHEETS (continued)
(Unaudited)
(In thousands except for share and per share amounts)
December 31, September 30,
2007 2007
------------ -------------
(Unaudited)
STOCKHOLDERS' EQUITY
Stockholders' Equity:
Class A common stock, par value $0.01 per
share, 750,000,000 shares authorized,
128,156,157 and 127,672,253 shares
issued, 102,997,191 and 107,126,309
shares outstanding, as of December 31,
2007 and September 30, 2007,
respectively $ 1,282 $ 1,277
Additional paid-in capital 1,495,930 1,472,409
Cost of common stock in treasury,
25,158,966 and 20,545,944 shares of
Class A common stock as of December 31,
2007 and September 30, 2007,
respectively (767,995) (597,200)
Retained earnings 82,363 38,144
Accumulated other comprehensive income,
net 123,731 123,382
------------ -------------
Total stockholders' equity 935,311 1,038,012
------------ -------------
Total Liabilities and Stockholders' Equity $ 2,638,622 $ 2,755,538
============ =============
HEWITT ASSOCIATES, INC.
CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited)
(In thousands)
Three Months Ended
December 31,
--------------------
2007 2006
---------- ---------
Cash flows from operating activities:
Net income $ 63,947 $ 30,065
Adjustments to reconcile net income to net cash
provided by operating activities:
Depreciation and amortization, including
amortization of deferred contract revenues
and costs 41,348 45,369
Asset impairment 225 956
Share-based compensation 9,336 9,738
Deferred income taxes 17,589 1,243
Changes in operating assets and
liabilities, net of effect of acquisitions
and dispositions:
Client receivables and unbilled work in
process (35,216) (28,840)
Prepaid expenses and other current assets (8,756) (1,178)
Deferred contract costs (30,650) (33,613)
Other assets (14,248) 1,623
Accounts payable (3,399) (12,427)
Accrued compensation and benefits (109,459) (65,846)
Accrued expenses (24,631) 7,452
Advanced billings to clients 34,649 53,956
Deferred contract revenues 35,088 15,685
Other long-term liabilities 37,744 (8,635)
---------- ---------
Net cash provided by operating activities 13,567 15,548
Cash flows from investing activities:
Purchases of short-term investments (345,775) (36,500)
Proceeds from sales of short-term investments 479,400 52,002
Additions to property and equipment and
intangible assets (23,403) (21,323)
---------- ---------
Net cash provided by (used in) investing
activities 110,222 (5,821)
Cash flows from financing activities:
Proceeds from the exercise of stock options 12,012 3,850
Excess tax benefits from the exercise of share-
based awards 1,022 13
Short-term borrowings 13,523 29,712
Repayments of short-term borrowings, capital
leases and long-term debt (13,685) (30,410)
Purchase of Class A common shares for treasury (170,795) (221)
---------- ---------
Net cash provided by (used in) financing
activities (157,923) 2,944
Effect of exchange rate changes on cash and cash
equivalents 1,301 3,675
---------- ---------
Net increase in cash and cash equivalents (32,833) 16,346
Cash and cash equivalents, beginning of period 378,743 138,928
---------- ---------
Cash and cash equivalents, end of period $ 345,910 $155,274
========== =========
HEWITT ASSOCIATES, INC.
ADJUSTED EBITDA RECONCILIATION
(Unaudited)
(In thousands)
Three Months Ended
December 31,
-------------------
2007 2006
-------------------
Reported Operating Income $108,933 $ 46,533
Adjustments:
Severance - 15,681
HR BPO Contract Restructuring (5,384) -
-------------------
Total Adjustments (5,384) 15,681
Adjusted Operating Income 103,549 62,214
Depreciation/Amortization (1) 43,164 45,094
-------------------
Adjusted EBITDA Before Non-Cash Addbacks 146,713 107,308
Non-Cash Addbacks:
Adjustments to Asset Impairments/Loss
Provisions 225 956
Net Deferrals (2) 6,660 (10,203)
Deferred Internal Software Development Costs (4,339) (3,718)
Stock-Based Compensation 9,336 9,738
Other (1,729) (4,248)
-------------------
Total Non-Cash Addbacks 10,153 (7,475)
Adjusted EBITDA $156,866 $ 99,833
-------------------
(1) The depreciation and amortization line from the Statement of Cash
Flows has been increased in Q1 FY08 by $2,091 to reflect amounts
already included in the adjustment category above for HR BPO contract
restructuring. Also excluded in Q1 FY08 and Q1 FY07 is $275 accretion
of discount on Exult convertible debt.
(2) Net Deferrals (the net impact of the Company's revenue and cost
deferrals), as presented above and the "net" of Revenue and Cost
Deferrals in the Statement of Cash Flows, varies by $2,222 and $7,725
for Q1 FY08 and Q1 FY07 respectively, primarily relating to Balance
Sheet and P&L reclassifications.
CONTACT: Hewitt Associates, Inc.
Sean McHugh, 847-442-8176 (Investors)
sean.mchugh@hewitt.com
Julie Macdonald, 847-442-6718 (Media)
julie.macdonald@hewitt.com
SOURCE: Hewitt Associates, Inc.
