This excerpt taken from the GVHR 10-Q filed May 12, 2008.
Gevity Edge operating income decreased from $4.7 million in the first three months of 2007 to an operating loss of $0.02 million in the first three months of 2008 or $4.7 million. The decline in Gevity Edge operating income is due to a decrease in gross profit of $10.6 million and partially offset by a decrease in operating expenses of $5.9 million as a result of cost alignment measures taken during 2007 and the first three months of 2008. The $10.6 million decrease in gross profit is due to the net effect of:
· a decline in professional service fees of $6.7 million as discussed above;
· a decrease in employee health and welfare gross profit of $1.6 million due to the net effect of a $2.6 million health plan surplus in 2007 versus a $1.0 million health plan surplus in 2008;
· a decrease in workers compensation gross profit of $0.3 million primarily due to a decrease in client employees as well as a decrease in Florida manual premium rates and partially offset by an increase in the benefit from the revision of prior year loss estimates as previously discussed; and
· a decrease in state unemployment taxes and other gross profit of $2.0 primarily due to unemployment tax rate increases that were not passed along to clients.
These excerpts taken from the GVHR 10-K filed Mar 17, 2008.
The Gevity Edge operating income decreased 14.0% to $48.4 million in 2006 from $56.3 million in 2005 or $7.9 million. During this time period, all of the consolidated operating income was derived from Gevity Edge and slightly offset by Gevity Edge Select operating losses of $0.6 million in 2006 and $1.3 million in 2005. As such, the drivers impacting gross profit for Gevity Edge have been previously discussed under Results Of OperationsAnalysis Of Consolidated Operations, Year Ended December 31, 2006 Compared to Year Ended December 31, 2005, Revenue, Cost of Sales and Operating Expenses".
The Gevity Edge operating income decreased 14.0% to $48.4 million in 2006 from $56.3 million in 2005 or $7.9 million. During this time