Exhibit 99.1
UNAUDITED CONDENSED
CONSOLIDATED BALANCE SHEETS
(In thousands)
| December 31, 2004 | December 31, 2003 | |||||||
| (As restated) | ||||||||
ASSETS | ||||||||
Current Assets: | ||||||||
Cash and cash equivalents | $ | 215,557 | $ | 105,465 | ||||
Restricted cash and investments | — | 170,036 | ||||||
Accounts receivable, net | 38,634 | 57,735 | ||||||
Other current assets | 51,457 | 65,766 | ||||||
Assets held for sale | 3,389 | 17,651 | ||||||
Total current assets | 309,037 | 416,653 | ||||||
Property and equipment, net | 2,273,356 | 2,483,324 | ||||||
Goodwill and other intangible assets, net | 1,577,986 | 1,612,432 | ||||||
Deferred income taxes | 633,814 | 502,737 | ||||||
Notes receivable and other long-term assets | 291,779 | 275,508 | ||||||
Total | $ | 5,085,972 | $ | 5,290,654 | ||||
| LIABILITIES AND STOCKHOLDERS’ EQUITY | ||||||||
Current Liabilities: | ||||||||
Accounts payable and accrued expenses | $ | 121,672 | $ | 107,557 | ||||
Accrued interest | 39,466 | 59,734 | ||||||
Current portion of long-term obligations | 138,386 | 76,627 | ||||||
Other current liabilities | 32,681 | 41,449 | ||||||
Liabilities held for sale | — | 9,910 | ||||||
Total current liabilities | 332,205 | 295,277 | ||||||
Long-term obligations | 3,155,228 | 3,283,104 | ||||||
Other long-term liabilities | 121,505 | 83,496 | ||||||
Total liabilities | 3,608,938 | 3,661,877 | ||||||
Minority interest in subsidiaries | 6,081 | 18,599 | ||||||
| STOCKHOLDERS’ EQUITY | ||||||||
Class A Common Stock | 2,297 | 2,119 | ||||||
Class B Common Stock | — | 70 | ||||||
Class C Common Stock | — | 12 | ||||||
Additional paid-in capital | 4,012,425 | 3,910,879 | ||||||
Accumulated deficit | (2,539,403 | ) | (2,291,816 | ) | ||||
Note receivable | — | (6,720 | ) | |||||
Treasury stock | (4,366 | ) | (4,366 | ) | ||||
Total stockholders’ equity | 1,470,953 | 1,610,178 | ||||||
Total | $ | 5,085,972 | $ | 5,290,654 | ||||
UNAUDITED CONDENSED
CONSOLIDATED STATEMENTS OF OPERATIONS
(In thousands, except per share data)
| Three Months Ended December 31, | Year Ended December 31, | |||||||||||||||
| 2004 | 2003 | 2004 | 2003 | |||||||||||||
| (As restated) | (As restated) | |||||||||||||||
REVENUES: | ||||||||||||||||
Rental and management | $ | 177,313 | $ | 163,126 | $ | 684,422 | $ | 619,697 | ||||||||
Network development services | 7,383 | 3,021 | 22,238 | 12,796 | ||||||||||||
Total operating revenues | 184,696 | 166,147 | 706,660 | 632,493 | ||||||||||||
OPERATING EXPENSES: | ||||||||||||||||
Rental and management | 60,278 | 60,253 | 237,312 | 236,680 | ||||||||||||
Network development services | 6,761 | 1,959 | 18,801 | 9,493 | ||||||||||||
Depreciation, amortization and accretion | 81,071 | 81,423 | 329,449 | 330,414 | ||||||||||||
Corporate general, administrative and development expense | 7,077 | 6,761 | 27,468 | 26,867 | ||||||||||||
Impairments, net loss on sale of long-lived assets and restructuring expense | 8,072 | 12,312 | 23,876 | 31,656 | ||||||||||||
Total operating expenses | 163,259 | 162,708 | 636,906 | 635,110 | ||||||||||||
OPERATING INCOME (LOSS) FROM CONTINUING OPERATIONS | 21,437 | 3,439 | 69,754 | (2,617 | ) | |||||||||||
OTHER INCOME (EXPENSE): | ||||||||||||||||
Interest income, TV Azteca, net | 3,540 | 3,669 | 14,316 | 14,222 | ||||||||||||
Interest income | 1,442 | 1,222 | 4,844 | 5,255 | ||||||||||||
Interest expense | (59,428 | ) | (68,006 | ) | (262,237 | ) | (279,783 | ) | ||||||||
Loss on retirement of long-term obligations | (50,624 | ) | (5,129 | ) | (138,016 | ) | (46,197 | ) | ||||||||
Other expense | (763 | ) | (1,382 | ) | (2,798 | ) | (8,598 | ) | ||||||||
Total other expense | (105,833 | ) | (69,626 | ) | (383,891 | ) | (315,101 | ) | ||||||||
LOSS FROM CONTINUING OPERATIONS BEFORE INCOME TAXES, MINORITY INTEREST AND EQUITY METHOD INVESTMENTS | (84,396 | ) | (66,187 | ) | (314,137 | ) | (317,718 | ) | ||||||||
Income tax benefit | 17,492 | 18,758 | 80,176 | 77,796 | ||||||||||||
Minority interest in net earnings of subsidiaries | (182 | ) | (1,433 | ) | (2,366 | ) | (3,703 | ) | ||||||||
Loss on equity method investments | (1,064 | ) | (1,387 | ) | (2,915 | ) | (21,221 | ) | ||||||||
LOSS FROM CONTINUING OPERATIONS | (68,150 | ) | (50,249 | ) | (239,242 | ) | (264,846 | ) | ||||||||
LOSS FROM DISCONTINUED OPERATIONS, NET | (5,880 | ) | (6,643 | ) | (8,345 | ) | (60,475 | ) | ||||||||
NET LOSS | $ | (74,030 | ) | $ | (56,892 | ) | $ | (247,587 | ) | $ | (325,321 | ) | ||||
BASIC AND DILUTED NET LOSS PER COMMON SHARE AMOUNTS | ||||||||||||||||
Loss from continuing operations | $ | (0.30 | ) | $ | (0.23 | ) | $ | (1.07 | ) | $ | (1.27 | ) | ||||
Loss from discontinued operations | (0.02 | ) | (0.03 | ) | (0.03 | ) | (0.29 | ) | ||||||||
NET LOSS PER COMMON SHARE | $ | (0.32 | ) | $ | (0.26 | ) | $ | (1.10 | ) | $ | (1.56 | ) | ||||
WEIGHTED AVERAGE COMMON SHARES OUTSTANDING | 228,469 | 219,662 | 224,336 | 208,098 | ||||||||||||
UNAUDITED CONDENSED
CONSOLIDATED STATEMENTS OF CASH FLOWS
(In thousands)
| Year Ended December 31, | ||||||||
| 2004 | 2003 | |||||||
| (As restated) | ||||||||
CASH FLOWS PROVIDED BY OPERATING ACTIVITIES: | ||||||||
Net loss | $ | (247,587 | ) | $ | (325,321 | ) | ||
Non-cash items reflected in statements of operations | 498,835 | 503,021 | ||||||
Increase in assets | (17,330 | ) | (15,557 | ) | ||||
Decrease in liabilities | (17,218 | ) | (5,757 | ) | ||||
Cash provided by operating activities | 216,700 | 156,386 | ||||||
CASH FLOWS USED FOR INVESTING ACTIVITIES: | ||||||||
Payments for purchase of property and equipment and construction activities | (42,181 | ) | (61,608 | ) | ||||
Payments for acquisitions, net of cash required | (33,403 | ) | (95,077 | ) | ||||
Payment for acquisition of Mexico minority interest | (3,947 | ) | — | |||||
Proceeds from notes receivable, net | — | 6,946 | ||||||
Proceeds from sale of businesses and other long-term assets | 31,987 | 110,753 | ||||||
Distributions to minority interest | (456 | ) | (671 | ) | ||||
Deposits and investments | 2,784 | (16,353 | ) | |||||
Cash used for investing activities | (45,216 | ) | (56,010 | ) | ||||
CASH FLOWS USED FOR FINANCING ACTIVITIES: | ||||||||
Proceeds from issuance of debt securities and notes payable | 1,072,500 | 1,032,384 | ||||||
Net proceeds from equity offering, stock options and other | 40,556 | 126,847 | ||||||
Borrowings under credit facility | 700,000 | — | ||||||
Repayment of notes payable, credit facility and capital leases | (2,003,401 | ) | (1,071,956 | ) | ||||
Restricted cash | 170,036 | (170,036 | ) | |||||
Deferred financing costs and other financing activities | (41,083 | ) | (39,442 | ) | ||||
Cash used for financing activities | (61,392 | ) | (122,203 | ) | ||||
NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS | 110,092 | (21,827 | ) | |||||
CASH AND CASH EQUIVALENTS, BEGINNING OF YEAR | 105,465 | 127,292 | ||||||
CASH AND CASH EQUIVALENTS, END OF YEAR | $ | 215,557 | $ | 105,465 | ||||
CASH PAID FOR INCOME TAXES | $ | 4,257 | $ | 2,609 | ||||
CASH PAID FOR INTEREST | $ | 209,874 | $ | 223,263 | ||||