Results of Operations The Company implemented SAB No. 101 in fiscal year 2001. In the following discussion, the results for the year ended October 31, 2001, as reported after the implementation of SAB No. 101, are compared with the results for the year ended October 31, 2000, as reported, which do not reflect the implementation of SAB No. 101. Following this is a discussion of results for 2000 compared to 1999 as presented on a historical basis, which does not reflect the implementation of SAB No. 101. The Company has also included a pro forma comparison using the same accounting methods for both the years ended October 31, 2001 and 2000. For the pro forma discussion, the year ended October 31, 2001 is presented as reported after the implementation of SAB No. 101, and the year ended October 31, 2000 is adjusted on a pro forma basis to show the effects of SAB No. 101. As the Company has its foreign operations and several small domestic operations held for sale, in the third quarter of 2001 it began segregating the operating results of these businesses from the operations it will retain. The following discussion segregates the financial results into two main categories in order to present the Company’s ongoing operating results and to provide more useful information for investors. The Company’s “Operations to be Retained” consist of those businesses it has owned and operated for the entire fiscal year and last and which are not for sale (“Existing Operations”) and those businesses that have been acquired or opened during this fiscal year or last (“Acquired/Opened Operations”). “Closed and Held for Sale Operations” consist of those that have been sold or closed during this fiscal year or last and the businesses that are currently being sold or offered for sale.