The Regents - University of California | Office of The President

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Cumulative effect of
accounting change (net of
income tax of $50 in 2000) (85) --
Net income 1,203 610
Distributions on subsidiary
trust and other mandatorily
redeemable preferred securities
Preferred dividend requirement
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--
Net income applicable to
common shareholders $ 1,186 $ 594
2. Second Quarter 2001
71. On June 27, 2001, the shareholders, at WorldCom’s request, had
approved a Plan of Recapitalization which allowed WorldCom Group to be
tracked separately from MCI. Shareholders, including the Regents, exchanged
their stock for WorldCom group stock and MCI group stock at different par
values.
72. On July 26, 2001, WorldCom issued a Press Release announcing its
Second Quarter 2001 earnings. WorldCom represented:
Internal cash flows at the WorldCom group improved
over $600 million during the quarter and were achieved
through increased cash from operations as well as less
cash used in investing activities.
WorldCom group reported revenues of $5.4 billion, a 12
percent increase from the same period in 2000. This
strong result was driven by 22 percent year-over-year
revenue growth in data and Internet services.
73. For the consolidated WorldCom results, WorldCom reported:
Second quarter 2001 consolidated revenues were $8.9
billion. Consolidated EBITDA was $2.7 billion,
representing an EBITDA margin of 30 percent. Second
quarter 2001 cash earnings were $917 million.
Consolidated net income, after goodwill amortization,
was $623 million.
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COMPLAINT