The Regents - University of California | Office of The President

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74. In management's comments, Ebbers stated:
I'm also extremely pleased with the results of our
heightened focus on cash flow. The $600 million
sequential improvement in internally generated cash flow
this quarter is a result of good business fundamentals:
solid growth, more stable pricing, efficient cost control
and effective balance sheet management.
Management's Outlook was:
In spite of the uncertain global economic environment, at
this point the Company expects full-year 2001
WorldCom group revenue growth of between 12 and 15
percent and expects WorldCom group EBITDA to be
between $7.8 and $8.3 billion. WorldCom group's cash
earnings are expected to be between $1.05 and $1.10 per
share for the year.
75. In addition, the Press Release stated that for the three and six-month
periods ended June 30, 2001 and 2000, WorldCom, for comparative purposes,
excluded some non-recurring items.
76. In its August 14, 2001filing with the SEC for the Second Quarter
2001 ended June 30, 2001, WorldCom represented its operations, including
revenues and income:
WORLDCOM, INC. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF
OPERATIONS (Unaudited, In Millions, Except Per Share Data)
For the Three Months Ended For the Six Months Ended
June 30, June 30,
2000 2001 2000 2001
Revenues $ 9,807 $ 8,910 $ 19,419 $ 17,735
Operating expenses:
Line costs 3,776 3,730 7,509 7,426
SG&A
Deprec. & amortiz.
2,458
1,186
3,389
1,407
4,766
2,333
5,986
2,742
Total $ 7,420 $ 8,526 $ 14,608 $ 16,154
Operating income 2,387 384 4,811 1,581
Other income (expense):
Interest expense (236) (348) (454) (653)
Miscellaneous 109 123 220 223
Income before income taxes,
min. ints. & cumulative
effect of accounting change 2,260
Provision for income taxes 919
159
62
4,577
1,866
1,151
444
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COMPLAINT