The Regents - University of California | Office of The President

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Income before min. ints &
cumulative effect of
accounting change 1,341 97 2,711 707
Minority interests (68) -- (150) –
Income before cumulative
effect of accounting change 1,273 97 2,561 707
Cumulative effect of
accounting change (net of
income tax of $50 in 2000) -- -- (85) --
Net income
Distributions on
1,273 97 2,476 707
mandatorily redeemable
preferred securities 16 16 32 32
Preferred dividend req. -- -- 1 --
Net income applicable
to common shareholders $ 1,257 $ 81 $ 2,443 $ 675
3. Third Quarter 2001
77. On October 25, 2001, WorldCom issued a Press Release announcing
its Third Quarter 2001 earnings. WorldCom represented that its third quarter 2001
consolidated revenues were $9 billions with EBITDA of $2.7 billion. The cash
earnings were $797 million with consolidated net income, after goodwill
amortization of $493 million. Under Management’s Comments, WorldCom
represented:
“WorldCom delivered excellent growth this quarter,
while substantially improving the free cash flow of our
business,” said Bernard J. Ebbers, president and CEO of
WorldCom, Inc. “Our data, Internet and international
businesses continue to perform well in spite of the very
difficult economic environment. We still expect our
growth businesses to gain market share profitably during
this period of global economic uncertainty.”
In Management’s Outlook, WorldCom forecasted its cash earnings for 2002 to be
between $.05 and $1.05 per share for the year.
78. In its November 14, 2001filing with the SEC for the Third Quarter
2001 for period ended September 30, 2001, WorldCom represented:
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COMPLAINT