The Regents - University of California | Office of The President

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investments. Without this charge, consolidated net income would have been $220
million.
86. The Management Comment’s represented:
“Despite very difficult performance this quarter
WorldCom was able to generate free cash flow from
operations and reduce net debt by $903 million,” said
Bernard J. Ebbers, WorldCom president and CEO. . .
Assuming no further economic or market deterioration,
WorldCom group currently expect full-year 2002
revenues of $21 billion to $21.5 billion and EBITDA
(earnings before interest, taxes, depreciation and
amortization) of $7 billion to $7.5 billion.
87. According to WorldCom’s 10-Q for the first quarter of 2002 (which
ended March 31, 2002) filed on May 15, 2002, the company had net income for its
consolidated operations of $610 million on $8,825,000,000 revenues. WorldCom
represented that Consolidated Statement of Operations (reported in millions of
dollars except for per share data) was as follows:
Revenues $8,825
Operating Expenses:
Line Costs
SG&A
3,696
2,597
Total
Depreciation & amort. 1,335
7,628
Operating Income 1,197
Other income (expense)
Interest expense (305)
Misc. 100
Income before taxes & minority int. 992
Provision for income taxes 382
Income before minority interests 610
Minority interests --
Net income 610
Distribut. on mand. redeemable
pref. sec. & other pref. sec. 16
Net income applicable to
common shareholders 594
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COMPLAINT