NorthWestern News Release
Corporation NYSE:NOR
Investors/Media:
Roger Schrum
605-978-2848
roger.schrum@northwestern.com
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NORTHWESTERN CORPORATION REPORTS 2002 FINANICAL RESULTS
Company Reports Loss of $892.9 Million for Full-Year 2002
Update Provided on Turnaround Plan
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SIOUX FALLS, S.D. - April 16, 2003 - NorthWestern Corporation (NYSE:NOR), one of
the largest providers of electricity and natural gas in the Upper Midwest and
Northwest, today reported its financial results for the year ended Dec. 31,
2002, following the filing with the Securities and Exchange Commission of its
Annual Report on Form 10-K and amended Quarterly Reports on Form 10-Q/A which
restated prior unaudited results for the first three quarters of 2002. In
addition, the Company updated the progress of its turnaround plan.
The Company reported a loss on common stock for the year ended Dec. 31, 2002, of
$892.9 million, or $30.04 per diluted share, compared with earnings on common
stock of $37.5 million or $1.53 per diluted share in 2001. Full-year 2002
results were negatively impacted by $878.5 million in charges.
Consolidated revenues for 2002 were $2.0 billion, a 15.5 percent increase from
$1.7 billion in 2001. Revenue increased in 2002 due to the addition of the newly
acquired Montana electric and natural gas utility operations as well as
increased revenue at Blue Dot, the Company's heating, ventilation and air
conditioning business, primarily as the result of several acquisitions. However,
consolidated revenues were adversely impacted by a substantial decrease in
revenue from Expanets, the Company's communications services business, due
primarily to deteriorating telecommunications markets and problems caused by
complications with its EXPERT billing and collection system.
2002 Charges
As previously announced, NorthWestern reported significant charges in 2002
totaling $878.5 million. The breakdown of the charges are as follows:
o Impairment of Blue Dot goodwill and other long-lived assets $301.7 million
o Impairment of Expanets goodwill and other long-lived assets $288.7 million
o Discontinued operations of CornerStone Propane, net of tax benefits $101.7 million
-MORE-
NorthWestern Reports Financial Results for 2002
April 16, 2003
Page 2
o Valuation allowance for deferred tax asset $71.5 million
o Expanets billing adjustments and accounts receivable write-offs and reserves $65.8 million
o Impairment of Montana First Megawatts project $35.7 million
o Retirement of acquisition term loan, net of tax benefits $13.4 million
Restatement of Quarterly Results
Immediately prior to filing NorthWestern's 2002 Annual Report on Form 10-K,
NorthWestern filed amended Quarterly Reports on Form 10-Q/A for the periods
ended March 31, 2002, June 30, 2002, and Sept. 30, 2002. The quarterly reports
were restated and include additional disclosures in the appropriate periods
related to:
o billing adjustments reducing revenues and increases in accounts
receivable reserves and write-offs resulting from significant
deficiencies in Expanets' EXPERT billing and collection system;
o the inadequacy of data to support recording certain revenues on a
percentage of completion basis, thereby requiring utilization of
completed contract revenue recognition methodology for such revenues
and cost recognition;
o the impact resulting from the finalization of the purchase accounting
for the acquisition of the Montana utility operations;
o the reversal of losses previously allocated to minority shareholders
of Blue Dot as a result of the finalization of the purchase accounting
for acquisitions made in 2002;
o the timing, amount and disclosure of adjustment to certain accruals;
o the quarterly impact of certain other adjustments.
Results from Core Utility Operations for 2002 NorthWestern's core electric and
natural gas utility, NorthWestern Energy, reported operating income of $145.0
million, compared with operating income of $45.9 million in 2001. Revenues for
2002 increased to $775.4 million, up substantially from revenues of $251.2
million in 2001. Results for 2002 include 11 months of Montana energy
operations, which were acquired in February 2002. In 2002, Montana utility
operations contributed $113.1 million in operating income, with revenues of
$562.6 million, excluding results from January 2002. South Dakota and Nebraska
operations contributed $31.9 million in operating income in 2002, with revenues
of $212.7 million.
Total sales of electricity increased to approximately 9.4 million megawatt hours
in 2002, compared with 1.6 million megawatt hours in 2001. Total sales of
natural gas grew to approximately 36.7 million MMBTU, compared with 18.3 million
MMBTU in 2001. Energy sales in 2002 reflect 11 months of results from Montana
operations.
NorthWestern Reports Financial Results for 2002
April 16, 2003
Page 3
Results from Nonutility Operations for 2002
For 2002, Expanets reported an operating loss of $391.9 million, compared with
an operating loss of $102.6 million in 2001. Full-year 2002 results were
adversely impacted by goodwill and other long-lived asset impairments in the
fourth quarter of 2002 of $288.7 million and a $65.8 million increase in
reserves and write-offs for billing adjustments and accounts receivable and
ongoing complications with Expanets' EXPERT enterprise billing and collection
system. Revenues decreased in 2002 to $710.5 million, compared with $1.0 billion
in 2001, due to deteriorating telecommunications markets and ongoing
complications with the EXPERT system.
Blue Dot reported an operating loss in 2002 of $311.3 million, compared with an
operating loss of $13.8 million in 2001. Blue Dot's results were adversely
impacted by goodwill and other long-lived asset impairments of $301.7 million
and challenging economic conditions. Revenues were $471.8 million in 2002,
compared with revenues in 2001 of $423.8 million. The increase in revenues was
primarily due to acquisitions made during 2001 and 2002.
Turnaround Plan Update
As previously announced, NorthWestern is implementing a turnaround plan
involving the following actions:
o Focusing on the Company's core electric and natural gas utility
business.
o Reducing debt by applying net proceeds from the sale of noncore assets
and businesses, including Blue Dot, Expanets, the Montana First
Megawatts generation project and the Colstrip (Montana) transmission
line.
o Reducing costs and improving cash flow.
o Strengthening internal financial controls and procedures.
NorthWestern reported that progress has been made on several
fronts regarding its turnaround plan, including:
o As part of a new agreement, Avaya, Inc. relinquished its equity
interest in Expanets and canceled a noninterest bearing subordinated
note with Expanets in the face amount of $35 million due in 2005,
which had a carrying value of approximately $27 million. In addition,
Expanets extended the payment schedule for approximately $27 million
of debt owed to Avaya, originally due Dec. 31, 2002, and now due in
three equal payments on Jan. 1, April 1 and July 1, 2004. NorthWestern
has an obligation to purchase inventory and receivables in an amount
equal to the outstanding balance in the event it is not repaid by
Expanets.
o NorthWestern has engaged an investment advisor to pursue a possible
sale or disposition of Blue Dot and Expanets. In addition, the Company
does not intend to make additional significant investments in Blue Dot
and Expanets and is working to improve their financial independence.
NorthWestern Reports Financial Results for 2002
April 16, 2003
Page 4
o Blue Dot has sold 15 of 16 noncore business locations that it had
previously targeted for sale. Selling these underperforming locations,
along with reductions in corporate overhead, will help Blue Dot to
become more self sufficient.
o The Company has hired a chief restructuring officer, reporting
directly to the Chief Executive Officer, and retained advisors to
assist in developing strategic alternatives to reduce costs, improve
cash flow and reduce debt.
o The Company has hired a vice president of audit and controls,
reporting directly to the Chief Executive Officer, to assess,
implement and monitor internal controls.
NorthWestern said that based on current plans and business conditions, the
Company expects that its cash flows from operations, cash and cash equivalents
will be sufficient to meet its cash requirements for the next 12 months. The
Company believes that it may need additional funding sources or proceeds from
the sale of noncore assets by the end of 2004 or early 2005. In 2005, the
Company faces substantial debt maturities.
Given the Company's significant debt, the board of directors intends to review
the appropriateness of each periodic interest payment of its trust preferred
securities in light of, among other things, the progress of its turnaround plan
and the Company's liquidity needs. The Company has the right to defer interest
payments for up to 20 consecutive quarters. If interest payments are deferred,
cash distributions on the trust preferred securities will also be deferred. In
each case, interest would accrue on deferred payments.
Absent the receipt of significant proceeds from the sale of noncore assets, the
raising of additional capital or a restructuring of existing debt, the Company
will not be able to meet its substantial debt maturities. The Company is
currently working with outside advisors to identify alternatives to restructure
its long-term debt.
"Recognizing our significant challenges, we are taking steps to try and
stabilize NorthWestern's current financial position and ensure that we maintain
sufficient funds to support our core utility business and meet our obligations,"
said Gary G. Drook, NorthWestern's Chief Executive Officer. "In the near term,
we are taking actions intended to assist us in reducing debt and returning our
focus to our core utility business. In the longer term, we are evaluating our
options for restructuring our indebtedness."
NorthWestern Reports Financial Results for 2002
April 16, 2003
Page 5
About NorthWestern
NorthWestern Corporation is one of the largest providers of electricity and
natural gas in the Upper Midwest and Northwest, serving approximately 598,000
customers in Montana, South Dakota and Nebraska. NorthWestern also has
investments in Expanets, Inc., a leading nationwide provider of networked
communications and data services to small and mid-sized businesses, and Blue Dot
Services Inc., a provider of heating, ventilation and air conditioning services
to residential and commercial customers.
Forward-Looking Statements
STATEMENT UNDER THE PRIVATE SECURITIES LITIGATION REFORM ACT OF 1995: All
statements contained herein, as well as statements made in press releases and
oral statements that may be made by us or by officers, directors or employees
acting on our behalf, that are not statements of historical fact constitute
"forward-looking statements" within the meaning of the Private Securities
Litigation Reform Act of 1995. Such forward-looking statements involve known and
unknown risks, uncertainties and other factors that could cause our actual
results to be materially different from historical results or from any future
results expressed or implied by such forward-looking statements. Among the
factors that could cause our actual results or outcomes to differ materially
are: the adverse impact of weather conditions and seasonal fluctuations;
unscheduled generation outages, maintenance or repairs; unanticipated changes to
fuel supply costs or availability due to higher demand, shortages,
transportation problems or other developments; developments in the federal and
state regulatory environment and the terms associated with obtaining regulatory
approvals and rate orders; costs associated with environmental liabilities and
compliance with environmental laws; the rate of growth and economic conditions
in our service territories and those of our subsidiaries; the speed and degree
to which competition enters the industries and markets in which our businesses
operate; the timing and extent of changes in interest rates and fluctuations in
energy-related commodity prices; risks associated with acquisitions, transition
and integration of acquired companies, including the transmission and
distribution business of the former Montana Power Company and the Growing and
Emerging Markets Division of Lucent Technologies, Inc., and the implementation
of information systems and realization of efficiencies in excess of any related
restructuring charges; pending litigation relating to our acquisition of the
former Montana Power Company; a lack of minority interest basis, which requires
us to recognize an increased share of operating losses at certain of our
subsidiaries; our ability to recover transition costs; disallowance by the
Montana Public Service Commission of the recovery of the costs incurred in
entering into our default supply portfolio contracts while we are required to
act as the "default supplier;" disruptions and adverse effects in the capital
markets due to the changing economic environment; our ability to maintain
effective systems of internal controls, including significant implementation
difficulties with the Expert system at Expanets; the impact of war, hostilities
or terrorist actions; our credit ratings with Moody's, Standard & Poor's and
Fitch; potential delays in financings or Securities and Exchange Commission
filings because we changed auditors; our substantial indebtedness, which could
limit our operating flexibility and ability to borrow additional funds; our
ability to obtain additional capital to refinance our indebtedness that is
scheduled to mature and for working capital purposes; our ability to identify
and successfully complete proposed asset divestitures and additional impairment
charges that may result from sales below book value; the ability of our
unregulated businesses to obtain independent financing without reliance on us;
changes in customer usage patterns and preferences; possible
NorthWestern Reports Financial Results for 2002
April 16, 2003
Page 6
future actions and developments of CornerStone Propane Partners L.P., Expanets,
Inc. and Blue Dot Services Inc.; and other factors identified from time to time
in our filings with the SEC. This news release should be read in conjunction
with our Annual Report on Form 10-K for 2001, as amended, and any subsequent
quarterly reports on Form 10-Q and current reports on Form 8-K, which can be
located at www.sec.gov or requested from the Company. Any forward-looking
statement speaks only as of the date on which such statement is made, and,
except as required by law, we undertake no obligation to update any
forward-looking statement to reflect events or circumstances after the date on
which such statement is made or to reflect the occurrence of unanticipated
events. New factors emerge from time to time, and it is not possible for
management to predict all such factors.
###
NorthWestern Reports Financial Results for 2002
April 16, 2003
Page 7
NORTHWESTERN CORPORATION
CONSOLIDATED STATEMENTS OF INCOME
(In Thousands, Except Per Share Amounts)
Year Ended
December 31
--------------------------------
2002 2001
--------------- ----------------
Operating Revenues $ 1,991,509 $ 1,723,978
Cost of Sales 1,095,409 1,069,356
--------------- ----------------
Gross Margin 896,100 654,622
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Operating Expenses:
Selling, general and administrative 771,626 642,379
Goodwill and other impairment charges 626,123 --
Depreciation 98,567 41,036
Amortization of intangibles and other intangibles 29,418 43,161
Restructuring charge -- 24,916
--------------- ----------------
1,525,734 751,492
--------------- ----------------
Operating Loss from Continuing Operations (629,634) (96,870)
Interest Expense (129,536) (49,248)
Investment Income and Other (5,382) 8,023
--------------- ----------------
Loss from Continuing Operations
before Income Taxes and Minority Interests (764,552) (138,095)
Benefit for Income Taxes 798 42,470
--------------- ----------------
Loss from Continuing Operations before Minority Interests (763,754) (95,625)
Minority Interests in Net Loss of Consolidated Subsidiaries 14,914 141,448
--------------- ----------------
Income (Loss) from Continuing Operations (748,840) 45,823
Discontinued Operations, Net of Tax and Minority Interests (101,655) (1,291)
--------------- ----------------
Income (Loss) before Extraordinary Item (850,495) 44,532
Extraordinary Item, Net of Tax of $7,241 (13,447) --
--------------- ----------------
Net Income (Loss) (863,942) 44,532
=============== ================
Minority Interests on Preferred Securities of
Subsidiary Trusts (28,610) (6,827)
Dividends and Redemption Premium on Preferred Stock (391) (191)
--------------- ----------------
Earnings (Loss) on Common Stock $ (892,943) $ 37,514
Average Common Shares Outstanding 29,726 24,390
Earnings (Loss) Per Average Common Share
Continuing operations $ (26.17) $ 1.59
Discontinued operations (3.42) (0.05)
Extraordinary item (0.45) --
--------------- ----------------
Basic $ (30.04) $ 1.54
=============== ================
Continuing operations $ (26.17) $ 1.58
Discontinued operations (3.42) (0.05)
Extraordinary item (0.45) --
--------------- ----------------
Diluted $ (30.04) $ 1.53
=============== ================
NorthWestern Reports Financial Results for 2002
April 16, 2003
Page 8
NORTHWESTERN CORPORATION
CONSOLIDATED BALANCE SHEETS
(In Thousands)
December 31, December 31,
2002 2001
--------------- ----------------
ASSETS
Current Assets:
Cash and cash equivalents $ 45,569 $ 34,789
Restricted cash 28,081 2,369
Accounts receivable, net 281,447 260,486
Inventories 86,650 79,719
Regulatory assets 15,430 --
Other 56,516 69,486
Assets held for sale 42,665 50,800
Current assets of discontinued operations -- 181,697
--------------- ----------------
Total current assets 556,358 679,346
--------------- ----------------
Property, Plant and Equipment, Net 1,253,746 445,441
Goodwill 400,095 405,734
Other Intangible Assets, Net 118,144 234,856
Other:
Investments 85,236 71,419
Regulatory assets 201,075 8,447
Deferred tax asset -- 17,374
Other 58,271 83,871
Noncurrent assets of discontinued operations -- 695,197
--------------- ----------------
Total assets $ 2,672,925 $ 2,641,685
=============== ================
LIABILITIES AND SHAREHOLDERS' EQUITY (DEFICIT)
Current Liabilities:
Current maturities of long-term debt $ 57,878 $ 356,445
Accounts payable 101,779 122,266
Accrued expenses 345,602 216,345
Regulatory liabilities 32,236 --
Current liabilities of discontinued operations -- 230,070
Total current liabilities 537,495 925,126
--------------- ----------------
Long-term Debt 1,704,016 411,349
Deferred Income Taxes 173 --
Noncurrent Regulatory Liabilities 23,614 6,950
Other Noncurrent Liabilities 483,113 75,040
Noncurrent Liabilities and Minority
Interests of Discontinued Operations -- 605,325
--------------- ----------------
Total liabilities 2,748,411 2,023,790
Minority Interests 10,340 30,067
Preferred Stock, Preference Stock and Preferred Securities:
Preferred stock - 4 1/2% series -- 2,600
Redeemable preferred stock - 6 1/2% series -- 1,150
Company obligated mandatorily
redeemable preferred securities of
subsidiary trusts 370,250 187,500
--------------- ----------------
Total preferred stock, preference
stock and preferred securities 370,250 191,250
--------------- ----------------
Shareholders' Equity (Deficit):
Common stock, par value $1.75;
authorized 50,000,000 shares;
issued and outstanding
37,396,762 and 27,396,762 65,444 47,942
Paid-in capital 304,781 240,797
Treasury stock, 174,016 and 155,943 shares at cost (3,560) (3,681)
Retained earnings (deficit) (818,604) 112,307
Accumulated other comprehensive income (loss) (4,137) (787)
--------------- ----------------
Total shareholders' equity (deficit) (456,076) 396,578
--------------- ----------------
Total liabilities and shareholders' equity (deficit) $ 2,672,925 $ 2,641,685
=============== ================
NorthWestern Reports Financial Results for 2002
April 16, 2003
Page 9
NORTHWESTERN CORPORATION
CONSOLIDATED STATEMENTS OF CASH FLOWS
(In Thousands)
Year Ended
December 31
--------------------------------
2002 2001
--------------- ----------------
Operating Activities:
Net income (loss) $ (863,942) $ 44,532
Items not affecting cash:
Depreciation 98,567 41,036
Amortization 29,418 43,161
Impairment charges 626,123 --
Provision for uncollectible accounts 44,764 13,972
Loss on discontinued operations, net of taxes 101,655 --
Extraordinary item, net of taxes 13,447 --
Deferred income taxes 35,643 (33,661)
Minority interests in net losses of
consolidated subsidiaries (14,914) (141,448)
Loss on disposal of other assets 17,783 --
Changes in operating assets and
liabilities, net of acquisitions:
Restricted cash 4,288 (2,369)
Accounts receivable 41,991 6,353
Inventories 5,931 (15,989)
Other current assets 35,819 (19,046)
Accounts payable (50,694) 50,965
Accrued expenses 18,349 63,535
Changes in regulatory assets and
liabilities (80,629) (369)
Other, net 30,600 197
--------------- ----------------
Cash flows provided by continuing
operations 94,199 50,869
Change in net assets of
discontinued operations (60,156) 32,318
--------------- ----------------
Cash flows provided by operating
activities 34,043 83,187
--------------- ----------------
Investment Activities:
Property, plant and equipment
additions (115,939) (163,857)
Proceeds from sale of assets 33,760 --
Sale (purchase) of noncurrent
investments and assets, net 2,199 (433)
Acquisitions, net of cash received (574,322) (18,767)
--------------- ----------------
Cash flows used in investing
activities (654,302) (183,057)
--------------- ----------------
Financing Activities:
Dividends on common and preferred
stock (38,081) (29,956)
Minority interest on preferred
securities of subsidiary trusts (28,610) (6,827)
Redemption of preferred stock (4,028) --
Proceeds from issuance of common stock 81,031 74,868
Issuance of long-term debt 738,149 2,884
Repayment of long-term debt (313,536) (23,766)
Line of credit borrowings, net 123,000 16,931
Repayment of discontinued
operations debt (26,059) --
Treasury stock activity 121 --
Financing costs (25,813) --
Issuance of preferred securities of
subsidiary trusts 117,750 96,833
Subsidiary repurchase of minority
interests (4,586) (57,768)
Line of credit repayments of
subsidiaries, net (13,197) (35,528)
Short-term borrowings of
subsidiaries, net -- 53,603
Proceeds from termination of hedge 24,898 --
--------------- ----------------
Cash flows provided by financing
activities 631,039 91,274
--------------- ----------------
Increase (Decrease) in Cash and Cash
Equivalents 10,780 (8,596)
Cash and Cash Equivalents, beginning
of period 34,789 43,385
--------------- ----------------
Cash and Cash Equivalents, end of
period $ 45,569 $ 34,789
=============== ================
NorthWestern Reports Financial Results for 2002
April 16, 2003
Page 10
Twelve Months Ended December 31, 2002
PARENT COMPANY
--------------------------------------------------------------
Natural Total Electric All Total Parent
Electric Gas & Natural Gas Other Company Communications
--------- ---------- -------------- ---------- ------------ ------------------
Operating Revenues $ 535,043 $ 240,326 $ 775,369 $ 33,864 $ 809,233 $ 710,452
Cost of Sales 205,607 133,124 338,731 5,478 344,209 444,534
--------- ---------- -------------- ---------- ------------ ------------------
Gross Margin 329,436 107,202 436,638 28,386 465,024 265,918
Selling, general and administrative 169,439 60,764 230,203 61,102 291,305 314,025
Goodwill & other impairment charges -- -- -- 35,729 35,729 288,741
Depreciation 48,888 12,551 61,439 2,957 64,396 26,238
Amortization of goodwill
and other intangibles -- -- -- 19 19 28,813
--------- ---------- -------------- ---------- ------------ ------------------
Operating Income (Loss) $ 111,109 $ 33,887 144,996 (71,421) 73,575 (391,899)
========= ===========
Interest expense (81,149) (16,997) (98,146) (30,903)
Investment income and other 2,709 (8,214) (5,505) --
-------------- ---------- ------------ ------------------
Income (loss) before taxes and 66,556 (96,632) (30,076) (422,802)
minority interests
Benefit (Provision) for taxes (10,190) 42,839 32,649 (22,780)
-------------- ---------- ------------ ------------------
Income (loss) before
minority interests $ 56,366 $ (53,793) $ 2,573 $ (445,582)
========= ========== ============ ==================
HVAC Total
----------- ----------------
Operating Revenues $ 471,824 $ 1,991,509
Cost of Sales 306,666 1,095,409
----------- ----------------
Gross Margin 165,158 896,100
Selling, general and administrative 166,296 771,626
Goodwill & other impairment charges 301,653 626,123
Depreciation 7,933 98,567
Amortization of goodwill
and other intangibles 586 29,418
----------- ----------------
Operating Income (Loss) (311,310) (629,634)
=========== ================
Interest expense (487) (129,536)
Investment income and other 123 (5,382)
----------- ----------------
Income (loss) before taxes and (311,674) (764,552)
minority interests
Benefit (Provision) for taxes (9,071) 798
----------- ----------------
Income (loss) before
minority interests $(320,745) $ (763,754)
=========== ================
Twelve Months Ended December 31, 2001
PARENT COMPANY
--------------------------------------------------------------
Natural Total Electric All Total Parent
Electric Gas & Natural Gas Other Company Communications
--------- ---------- -------------- ---------- ------------ ------------------
Operating Revenues $ 106,995 $ 144,213 $ 251,208 $ 16,934 $ 268,142 $ 1,032,033
Cost of Sales 23,052 119,060 142,112 11,230 153,342 648,036
--------- ---------- -------------- ---------- ------------ ------------------
Gross Margin 83,943 25,153 109,096 5,704 114,800 383,997
Selling, general and administrative 27,734 14,550 42,284 22,664 64,948 431,477
Restructuring charge 3,329 1,170 4,499 7,272 11,771 5,906
Depreciation 13,193 3,235 16,428 1,942 18,370 13,518
Amortization of goodwill
and other intangibles -- -- -- 269 269 35,647
--------- ---------- -------------- ---------- ------------ ------------------
Operating Income (Loss) $ 39,687 $ 6,198 45,885 (26,443) 19,442 (102,551)
========= ===========
Interest expense (8,692) (19,391) (28,083) (17,330)
Investment income and other 306 6,830 7,136 683
-------------- ---------- ------------ -----------------
Income (loss) before taxes and 37,499 (39,004) (1,505) (119,198)
minority interests
Benefit (Provision) for income taxes (11,857) 18,307 6,450 32,190
-------------- ---------- ------------ -----------------
Income (loss) before minority interests $ 25,642 $ (20,697) $ 4,945 $ (87,008)
========= ========== ============ ==================
HVAC Total
----------- ----------------
Operating Revenues $ 423,803 $ 1,723,978
Cost of Sales 267,978 1,069,356
----------- ----------------
Gross Margin 155,825 654,622
Selling, general and administrative 145,954 642,379
Restructuring charge 7,239 24,916
Depreciation 9,148 41,036
Amortization of goodwill
and other intangibles 7,245 43,161
----------- ----------------
Operating Income (Loss) (13,761) (96,870)
=========== ================
Interest expense (3,835) (49,248)
Investment income and other 204 8,023
----------- ----------------
Income (loss) before taxes and (17,392) (138,095)
minority interests
Benefit (Provision) for income taxes 3,830 42,470
----------- ----------------
Income (loss) before minority interests $ (13,562) $ (95,625)
=========== ================