Exhibit 99.1
UNAUDITED CONDENSED
CONSOLIDATED BALANCE SHEETS
(In thousands)
| March 31, 2005 | December 31, 2004 | |||||||
ASSETS | ||||||||
Current Assets: | ||||||||
Cash and cash equivalents | $ | 122,797 | $ | 215,557 | ||||
Accounts receivable, net | 30,424 | 38,634 | ||||||
Other current assets | 41,910 | 51,457 | ||||||
Assets held for sale | 3,389 | 3,389 | ||||||
Total current assets | 198,520 | 309,037 | ||||||
Property and equipment, net | 2,231,278 | 2,273,356 | ||||||
Goodwill and other intangible assets, net | 1,559,912 | 1,577,986 | ||||||
Deferred income taxes | 642,145 | 633,814 | ||||||
Notes receivable and other long-term assets | 293,045 | 291,779 | ||||||
Total | $ | 4,924,900 | $ | 5,085,972 | ||||
LIABILITIES AND STOCKHOLDERS’ EQUITY | ||||||||
Current Liabilities: | ||||||||
Accounts payable and accrued expenses | $ | 120,666 | $ | 121,672 | ||||
Accrued interest | 43,586 | 39,466 | ||||||
Current portion of long-term obligations | 5,350 | 138,386 | ||||||
Other current liabilities | 28,422 | 32,681 | ||||||
Total current liabilities | 198,024 | 332,205 | ||||||
Long-term obligations | 3,141,835 | 3,155,228 | ||||||
Other long-term liabilities | 126,740 | 121,505 | ||||||
Total liabilities | 3,466,599 | 3,608,938 | ||||||
Minority interest in subsidiaries | 5,970 | 6,081 | ||||||
STOCKHOLDERS’ EQUITY | ||||||||
Class A Common Stock | 2,308 | 2,297 | ||||||
Additional paid-in capital | 4,025,353 | 4,012,425 | ||||||
Accumulated deficit | (2,570,964 | ) | (2,539,403 | ) | ||||
Treasury stock | (4,366 | ) | (4,366 | ) | ||||
Total stockholders’ equity | 1,452,331 | 1,470,953 | ||||||
Total | $ | 4,924,900 | $ | 5,085,972 | ||||
UNAUDITED CONDENSED
CONSOLIDATED STATEMENTS OF OPERATIONS
(In thousands, except per share data)
| Three Months Ended March 31, | ||||||||
| 2005 | 2004 | |||||||
REVENUES: | ||||||||
Rental and management | $ | 181,570 | $ | 164,576 | ||||
Network development services | 2,785 | 4,215 | ||||||
Total operating revenues | 184,355 | 168,791 | ||||||
OPERATING EXPENSES: | ||||||||
Rental and management | 60,180 | 58,876 | ||||||
Network development services | 2,202 | 3,561 | ||||||
Depreciation, amortization and accretion | 81,971 | 81,345 | ||||||
Corporate general, administrative and development expense | 6,973 | 6,879 | ||||||
Impairments, net loss on sale of long-lived assets and restructuring expense | 2,777 | 3,914 | ||||||
Total operating expenses | 154,103 | 154,575 | ||||||
INCOME FROM OPERATIONS | 30,252 | 14,216 | ||||||
OTHER INCOME (EXPENSE): | ||||||||
Interest income, TV Azteca, net | 3,498 | 3,540 | ||||||
Interest income | 699 | 1,114 | ||||||
Interest expense | (54,716 | ) | (69,157 | ) | ||||
Loss on retirement of long-term obligations | (15,042 | ) | (8,053 | ) | ||||
Other income (expense) | 670 | (204 | ) | |||||
Total other expense | (64,891 | ) | (72,760 | ) | ||||
LOSS FROM CONTINUING OPERATIONS BEFORE INCOME TAXES, MINORITY INTEREST AND EQUITY METHOD INVESTMENTS | (34,639 | ) | (58,544 | ) | ||||
Income tax benefit | 4,338 | 13,018 | ||||||
Minority interest in net earnings of subsidiaries | (55 | ) | (1,423 | ) | ||||
Loss on equity method investments | (1,098 | ) | (618 | ) | ||||
LOSS FROM CONTINUING OPERATIONS | (31,454 | ) | (47,567 | ) | ||||
LOSS FROM DISCONTINUED OPERATIONS, NET | (107 | ) | (671 | ) | ||||
NET LOSS | $ | (31,561 | ) | $ | (48,238 | ) | ||
BASIC AND DILUTED NET LOSS PER COMMON SHARE AMOUNTS | ||||||||
Loss from continuing operations | $ | (0.14 | ) | $ | (0.22 | ) | ||
Loss from discontinued operations | ||||||||
NET LOSS PER COMMON SHARE | $ | (0.14 | ) | $ | (0.22 | ) | ||
WEIGHTED AVERAGE COMMON SHARES OUTSTANDING | 230,158 | 220,408 | ||||||
UNAUDITED CONDENSED
CONSOLIDATED STATEMENTS OF CASH FLOWS
(In thousands)
Three Months Ended March 31, | ||||||||
| 2005 | 2004 | |||||||
CASH FLOWS PROVIDED BY OPERATING ACTIVITIES: | ||||||||
Net loss | $ | (31,561 | ) | $ | (48,238 | ) | ||
Other non-cash items reflected in statements of operations | 109,829 | 102,720 | ||||||
Decrease in assets | 13,606 | 10,829 | ||||||
Increase (decrease) in liabilities | 681 | (33,595 | ) | |||||
Cash provided by operating activities | 92,555 | 31,716 | ||||||
CASH FLOWS USED FOR INVESTING ACTIVITIES: | ||||||||
Payments for purchase of property and equipment and construction activities | (15,881 | ) | (10,832 | ) | ||||
Payments for acquisitions | (932 | ) | (13,373 | ) | ||||
Payment for acquisition of Mexico minority interest | (7,270 | ) | ||||||
Proceeds from sale of businesses and other long-term assets | 910 | 20,818 | ||||||
Deposits, investments and other long-term assets | (310 | ) | (2,586 | ) | ||||
Cash used for investing activities | (23,483 | ) | (5,973 | ) | ||||
CASH FLOWS USED FOR FINANCING ACTIVITIES: | ||||||||
Repayment of notes payable, credit facility and capital leases | (169,086 | ) | (307,704 | ) | ||||
Proceeds from issuance of debt securities | 225,000 | |||||||
Net proceeds from stock options | 7,500 | 4,271 | ||||||
Restricted cash and investments | 50,899 | |||||||
Deferred financing costs and other financing activities | (246 | ) | (4,976 | ) | ||||
Cash used for financing activities | (161,832 | ) | (32,510 | ) | ||||
NET DECREASE IN CASH AND CASH EQUIVALENTS | (92,760 | ) | (6,767 | ) | ||||
CASH AND CASH EQUIVALENTS, BEGINNING OF YEAR | 215,557 | 105,465 | ||||||
CASH AND CASH EQUIVALENTS, END OF PERIOD | $ | 122,797 | $ | 98,698 | ||||
CASH PAID FOR INCOME TAXES | $ | 958 | $ | 279 | ||||
CASH PAID FOR INTEREST | $ | 37,255 | $ | 75,149 | ||||