The Advisory Board Company Reports Fiscal Year 2008 Third Quart...(n or otherwise. Youshould however consul...),Health

THE ADVISORY BOARD COMPANY

UNAUDITED CONSOLIDATED STATEMENTS OF OPERATIONS

AND OTHER OPERATING STATISTICS

(In thousands, except per share data)

Three Months Ended Selected Nine Months Ended Selected

December 31, Growth December 31, Growth

2007 2006 Rates 2007 2006 Rates

Statements of

Operations

Revenues $55,912 $48,611 15.0% $161,045 $139,543 15.4%

Cost of services 26,107 23,334 74,775 65,824

Member relations

and marketing 11,869 10,562 33,654 29,808

General and

administrative 6,754 5,938 19,457 17,015

Depreciation 948 562 2,598 1,457

Income from

operations 10,234 8,215 30,561 25,439

Interest income 1,629 1,686 4,720 5,145

Income before

provision for

income taxes 11,863 9,901 19.8% 35,281 30,584 15.4%

Provision for

income taxes 3,951 3,356 11,752 10,367

Net income $7,912 $6,545 20.9% $23,529 $20,217 16.4%

Earnings per share

Basic $0.44 $0.35 $1.30 $1.07

Diluted $0.42 $0.34 23.5% $1.25 $1.03 21.4%

Weighted average

common shares

outstanding

Basic 18,090 18,694 18,097 18,818

Diluted 18,871 19,461 18,825 19,554

Contract Value

(at end of

period) $2
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