Revenues in the fourth quarter 2000 were $327.4 million, versus $322.2 million in the same period last year. For all of 2000, earnings were $43.8 million ($1.05 per share diluted), compared to $56.9 million ($1.34 per share diluted) during the same period last year. Revenues in 2000 were $1.28 billion, compared to $1.24 billion in 1999.
Our financial performance in the fourth quarter is a sign of strength, said AMS Chief Executive Officer and President William M. Purdy. At the same time, we recognize that revenue growth has been disappointing in certain sectors and that action must be taken to increase profitability.
Building upon its assets of long-term client relationships and deep industry expertise, AMS will take steps to improve the value proposition we bring to clients and to increase shareholder value. AMS is embarking on a path to streamline its business model by:
Consolidating operating activities to create new opportunities for growth in response to a rapidly changing marketplace. Specifically, the Company has completed the consolidation of its business with state and local governments. In addition, we will begin to locate the staff supporting this customer base to the capitals of major states and in the largest cities to better serve these clients. AMS has combined its retail and corporate banking, insurance services and risk management client base under a Combined Financial Services market organization. All activities in Europe now report to a European Director of Operations. With this structure the Company will focus on large clients and achieve operational efficiencies. These changes have been made to focus business development activities and improve cross selling of AMS services to our clients.
Realigning its internal operations to a shared services model to significantly streamline support activities across the corporation. The new shared services organization will manage and deliver a range of support services, including human resources and internal computing services as well as others. In November 2000, AMS retained a consulting firm to first benchmark its indirect costs and then to help design a shared services organization. The shared services model is expected to be complete in 2001.
Placing increased emphasis on high performance and accountability at every level of the company. The process already has identified some employees whose skills no longer match our business needs and will, therefore, be leaving the company. AMS will continue to review and monitor employee skills in light of its business needs.
For the year, AMS will take a restructuring charge of between $14 million and $19 million, of which approximately $13 million will be recorded in the first quarter. It is expected that the increased emphasis on employee fit and performance and the move to shared services in 2001 may impact approximately 10 percent of AMS’s U.S.-based workforce by the end of 2001.
The path we have embarked on combined with our expertise and strong client base will position AMS for future growth and increased profitability, Purdy said.
