EX-99 3 ex99-1.txt EXHIBIT 99.1 AOL TIME WARNER INC. Impact of Restatements (Unaudited)
For the Three Months Ended ---------------------------------------- Year Ended 3/31/00 6/30/00 9/30/00 12/31/00 12/31/00 ------- ------- ------- -------- -------- (millions, except per share amounts) America Online Inc. (predecessor to AOL Time Warner Inc.) Revenues......................................... $1,814 $1,885 $1,945 $2,059 $7,703 Restatement...................................... - - (66) (22) (88) ------ ------ ------ ------ ------ Restated Revenues ............................... $1,814 $1,885 $1,879 $2,037 $7,615 ====== ====== ====== ====== ====== Advertising & Commerce Revenues.................. $528 $561 $594 $686 $2,369 Restatement...................................... - - (66) (22) (88) ---- ---- ---- ---- ------ Restated Advertising & Commerce Revenues......... $528 $561 $528 $664 $2,281 ==== ==== ==== ==== ====== EBITDA........................................... $484 $554 $592 $631 $2,261 Restatement...................................... - - (30) (22) (52) ---- ---- ---- ---- ------ Restated EBITDA.................................. $484 $554 $562 $609 $2,209 ==== ==== ==== ==== ====== Operating Income................................. $376 $456 $482 $503 $1,817 Restatement...................................... - - (30) (21) (51) ---- ---- ---- ---- ------ Restated Operating Income........................ $376 $456 $452 $482 $1,766 ==== ==== ==== ==== ======- Net Income....................................... $433 $338 $344 $37 $1,152 Restatement...................................... - - (18) (13) (31) ---- ---- ---- ---- ------ Restated Net Income.............................. $433 $338 $326 $24 $1,121 ==== ==== ==== === ====== Diluted Income per Common Share.................. $ 0.17 $ 0.13 $ 0.13 $ 0.01 $ 0.45 Restatement...................................... - - - - (0.02) ------ ------ ------ ------ ------ Restated Diluted Income per Common Share......... $ 0.17 $ 0.13 $ 0.13 $ 0.01 $ 0.43 ====== ====== ====== ====== ====== AOL Time Warner (Pro Forma) Revenues......................................... $8,426 $9,026 $8,896 $10,377 $36,725 Restatement...................................... - - (66) (22) (88) ------ ------ ------ ------ ------- Restated Revenues ............................... $8,426 $9,026 $8,830 $10,355 $36,637 ====== ====== ====== ======= ======= Advertising & Commerce Revenues.................. $1,899 $2,299 $2,074 $2,634 $8,906 Restatement...................................... - - (66) (22) (88) ------ ------ ------ ------ ------ Restated Advertising & Commerce Revenues......... $1,899 $2,299 $2,008 $2,612 $8,818 ====== ====== ====== ====== ====== EBITDA........................................... $1,581 $1,893 $1,821 $2,051 $7,346 Restatement...................................... - - (30) (22) (52) ------ ------ ------ ------ ------ Restated EBITDA.................................. $1,581 $1,893 $1,791 $2,029 $7,294 ====== ====== ====== ====== ====== Operating Income................................. $1,087 $1,403 $1,310 $1,493 $5,293 Restatement...................................... - - (30) (21) (51) ------ ------ ------ ------ ------ Restated Operating Income........................ $1,087 $1,403 $1,280 $1,472 $5,242 ====== ====== ====== ====== ====== Net Income (Loss)................................ $ (40) $ 493 $ 516 $ 234 $1,203 Restatement...................................... - - (18) (13) (31) ------ ------ ------ ------ ------ Restated Net Income (Loss)....................... $ (40) $ 493 $ 498 $ 221 $1,172 ====== ====== ====== ====== ====== Diluted Income (Loss) per Common Share........... $(0.01) $ 0.11 $ 0.12 $ 0.05 $ 0.28 Restatement...................................... - - (0.01) - (0.01) ------ ------ ------ ------ ------ Restated Diluted Income (Loss) per Common Share.. $(0.01) $ 0.11 $ 0.11 $ 0.05 $ 0.27 ====== ====== ====== ====== ======
AOL TIME WARNER INC. Impact of Restatements (Unaudited)
For the Three Months Ended ---------------------------------------- Year Ended 3/31/01 6/30/01 9/30/01 12/31/01 12/31/01 ------- ------- ------- -------- -------- (millions, except per share amounts) AOL Segment (Historical) Revenues......................................... $2,125 $2,138 $2,196 $2,259 $8,718 Restatement(1)................................... (13) (28) (16) (17) (74) ------ ------ ------ ------ ------ Restated Revenues ............................... $2,112 $2,110 $2,180 $2,242 $8,644 ====== ====== ====== ====== ====== Advertising & Commerce Revenues.................. $721 $706 $624 $637 $2,688 Restatement...................................... (13) (28) (16) (17) (74) ---- ---- ---- ---- ------ Restated Advertising & Commerce Revenues......... $708 $678 $608 $620 $2,614 ==== ==== ==== ==== ====== EBITDA........................................... $684 $801 $742 $718 $2,945 Restatement(1)................................... (1) (7) (6) (17) (31) ---- ---- ---- ---- ------ Restated EBITDA.................................. $683 $794 $736 $701 $2,914 ==== ==== ==== ==== ====== Operating Income................................. $548 $669 $602 $554 $2,373 Restatement...................................... - (5) (2) (15) (22) ---- ---- ---- ---- ------ Restated Operating Income........................ $548 $664 $600 $539 $2,351 ==== ==== ==== ==== ====== AOL Time Warner (Historical) Revenues......................................... $9,080 $9,202 $9,320 $10,632 $38,234 Restatement(1)................................... (14) (42) (16) (18) (90) ------ ------ ------ ------- ------- Restated Revenues ............................... $9,066 $9,160 $9,304 $10,614 $38,144 ====== ====== ====== ======= ======= Advertising & Commerce Revenues.................. $2,053 $2,278 $1,934 $2,222 $8,487 Restatement(1)................................... (14) (42) (16) (18) (90) ------ ------ ------ ------- ------- Restated Advertising & Commerce Revenues......... $2,039 $2,236 $1,918 $2,204 $8,397 ====== ====== ====== ====== ====== EBITDA........................................... $2,075 $2,537 $2,329 $2,715 $9,656 Restatement(2)................................... (1) (7) (6) (17) (31) ------ ------ ------ ------- ------- Restated EBITDA.................................. $2,074 $2,530 $2,323 $2,698 $9,625 ====== ====== ====== ====== ====== Operating Income (Loss).......................... $ (147) $ 276 $ 29 $ 295 $ 453 Restatement(2)................................... - (5) (2) (15) (22) ------ ------ ------ ------- ------- Restated Operating Income (Loss)................. $ (147) $ 271 $ 27 $ 280 $ 431 ====== ======= ====== ======= ======= Net Loss......................................... $(1,369) $ (734) $ (996) $(1,822) $(4,921) Restatement(2)................................... - (3) (1) (9) (13) ------ ------ ------ ------- ------- Restated Net Loss................................ $(1,369) $ (737) $ (997) $(1,831) $(4,934) ======= ====== ====== ======= ======= Diluted Loss per Common Share.................... $(0.31) $(0.17) $(0.22) $(0.41) $ (1.11) Restatement...................................... - - - - - ------ ------ ------ ------ ------- Restated Diluted Loss per Common Share........... $(0.31) $(0.17) $(0.22) $(0.41) $ (1.11) ======= ======= ======= ====== ======= AOL Time Warner (Pro Forma) Revenues......................................... $9,186 $9,349 $9,433 $10,624 $38,592 Restatement...................................... (14) (42) (16) (18) (90) ------ ------ ------ ------- ------- Restated Revenues ............................... $9,172 $9,307 $9,417 $10,606 $38,502 ====== ====== ====== ======= ======= Advertising & Commerce Revenues.................. $2,075 $2,317 $1,953 $2,206 $8,551 Restatement...................................... (14) (42) (16) (18) (90) ------ ------ ------ ------- ------- Restated Advertising & Commerce Revenues......... $2,061 $2,275 $1,937 $2,188 $8,461 ====== ====== ====== ====== ====== EBITDA........................................... $1,730 $2,234 $2,059 $2,335 $8,358 Restatement(2)................................... (1) (7) (6) - (14) ------ ------ ------ ------- ------- Restated EBITDA.................................. $1,729 $2,227 $2,053 $2,335 $8,344 ====== ====== ====== ====== ====== Operating Income................................. $1,137 $1,612 $1,438 $1,639 $5,826 Restatement(2)................................... - (5) (2) 2 (5) ------ ------ ------ ------- ------- Restated Operating Income........................ $1,137 $1,607 $1,436 $1,641 $5,821 ====== ====== ====== ====== ====== Net Income (Loss)................................ $ (51) $ 596 $ 396 $ (466) $ 475 Restatement(2)................................... - (3) (1) 1 (3) ----- ------ ------ ------ ------ Restated Net Income (Loss)....................... $ (51) $ 593 $ 395 $ (465) $ 472 ======= ====== ====== ====== ====== Diluted Income (Loss) per Common Share........... $(0.01) $ 0.13 $ 0.09 $(0.11) $ 0.10 Restatement...................................... - - - - - ----- ------ ------ ------ ------ Restated Diluted Income (Loss) per Common Share.. $(0.01) $ 0.13 $ 0.09 $(0.11) $ 0.10 ====== ====== ====== ====== ======
(1) Difference between AOL Segment and AOL Time Warner restatement relates to certain transactions for which the advertising was delivered by other AOL Time Warner divisions. (2) Difference in historical and pro forma restatement relates to the impact of AOL Europe, which was not consolidated into the historical results of AOL Time Warner until January 1, 2002. AOL TIME WARNER INC. Impact of Restatements (Unaudited)
For the Three For the Six Months Ended Months Ended ------------ ------------ 3/31/02 6/30/02 6/30/02 ------- ------- ------- (millions, except per share amounts) AOL Segment (Historical) Revenues......................................... $2,297 $2,266 $4,563 Restatement(1)................................... (6) - (6) ------ ------ ------ Restated Revenues ............................... $2,291 $2,266 $4,557 ====== ====== ====== Advertising & Commerce Revenues.................. $501 $412 $913 Restatement(1)................................... (6) - (6) ---- ---- ---- Restated Advertising & Commerce Revenues......... $495 $412 $907 ==== ==== ==== EBITDA........................................... $433 $473 $906 Restatement...................................... (15) 1 (14) ---- ---- ---- Restated EBITDA.................................. $418 $474 $892 ==== ==== ==== Operating Income................................. $262 $271 $533 Restatement...................................... (13) 3 (10) ---- ---- ---- Restated Operating Income........................ $249 $274 $523 ==== ==== ==== AOL Time Warner (Historical) Revenues......................................... $9,764 $10,575 $20,339 Restatement(1)................................... (12) - (12) ------ ------- ------- Restated Revenues ............................... $9,752 $10,575 $20,327 ====== ======= ======= Advertising & Commerce Revenues.................. $1,825 $2,070 $3,895 Restatement(1)................................... (12) - (12) ------ ------ ------ Restated Advertising & Commerce Revenues......... $1,813 $2,070 $3,883 ====== ====== ====== EBITDA........................................... $1,943 $2,463 $4,406 Restatement...................................... (15) 1 (14) ------ ------ ------ Restated EBITDA.................................. $1,928 $2,464 $4,392 ====== ====== ====== Operating Income................................. $1,209 $1,662 $2,871 Restatement...................................... (13) 3 (10) ------ ------ ------ Restated Operating Income........................ $1,196 $1,665 $2,861 ====== ====== ====== Net Income (Loss)................................ $(54,240) $ 394 $(53,846) Restatement...................................... (4) 2 (2) -------- ------- -------- Restated Net Income (Loss)....................... $(54,244) $ 396 $(53,848) ======== ======= ======== Diluted Income (Loss) per Common Share........... $(12.25) $ 0.09 $(12.12) Restatement...................................... - - - ------- ------ ------- Restated Diluted Income (Loss) per Common Share.. $(12.25) $ 0.09 $(12.12) ======= ====== =======
(1) Difference between AOL Segment and AOL Time Warner restatement relates to certain transactions for which the advertising was delivered by other AOL Time Warner divisions. AOL TIME WARNER INC. HISTORICAL CONSOLIDATED STATEMENT OF OPERATIONS (Unaudited)
For the Three Months Ended ---------------------------------------- Year Ended 3/31/00 6/30/00 9/30/00 12/31/00 12/31/00 ------- ------- ------- -------- -------- (millions, except per share amounts) Revenues: Subscriptions............................... $1,153 $1,185 $1,206 $1,233 $4,777 Advertising and commerce.................... 528 561 528 664 2,281 Content and other........................... 133 139 145 140 557 ------ ------ ------ ------ ------ Total revenues.............................. 1,814 1,885 1,879 2,037 7,615 Costs of revenues................................ (987) (924) (958) (1,007) (3,876) Selling, general and administrative.............. (432) (476) (443) (513) (1,864) Amortization of goodwill and other intangible assets...................................... (19) (19) (26) (35) (99) Merger and restructuring costs................... - (10) - - (10) ------ ------ ------ ------ ------ Operating income................................. 376 456 452 482 1,766 Interest income, net............................. 58 73 80 64 275 Other income (expense), net...................... 280 7 9 (504) (208) Minority interest income (expense)............... (1) 1 - - - ------ ------ ------ ------ ------ Income before income taxes....................... 713 537 541 42 1,833 Income tax provision............................. (280) (199) (215) (18) (712) ------ ------ ------ ------ ------ Net income applicable to common shares........... $ 433 $ 338 $ 326 $ 24 $1,121 ====== ====== ====== ====== ====== Basic net income per common share................ $ 0.19 $ 0.15 $ 0.14 $ 0.01 $ 0.48 ====== ====== ====== ====== ====== Diluted net income per common share.............. $ 0.17 $ 0.13 $ 0.13 $ 0.01 $ 0.43 ====== ====== ====== ====== ====== Average basic common shares...................... 2,298.0 2,312.0 2,325.0 2,356.0 2,323.0 ======= ======= ======= ======= ======= Average diluted common shares.................... 2,608.0 2,599.0 2,600.0 2,575.0 2,595.0 ======= ======= ======= ======= =======
AOL TIME WARNER INC. HISTORICAL CONSOLIDATED STATEMENT OF OPERATIONS (Unaudited)
For the Three Months Ended ---------------------------------------- Year Ended 3/31/01 6/30/01 9/30/01 12/31/01 12/31/01 ------- ------- ------- -------- -------- (millions, except per share amounts) Revenues: Subscriptions............................... $ 3,857 $ 4,058 $ 4,190 $ 4,438 $16,543 Advertising and commerce.................... 2,039 2,236 1,918 2,204 8,397 Content and other........................... 3,170 2,866 3,196 3,972 13,204 ------- ------- ------- ------- ------- Total revenues.............................. 9,066 9,160 9,304 10,614 38,144 Costs of revenues................................ (4,998) (4,784) (5,026) (5,839) (20,647) Selling, general and administrative.............. (2,370) (2,325) (2,323) (2,572) (9,590) Amortization of goodwill and other intangible assets...................................... (1,774) (1,780) (1,794) (1,878) (7,226) Merger and restructuring costs................... (71) - (134) (45) (250) ------- ------- ------- ------- ------- Operating income (loss).......................... (147) 271 27 280 431 Interest expense, net............................ (319) (352) (347) (361) (1,379) Other expense, net............................... (872) (233) (437) (1,997) (3,539) Minority interest expense........................ (104) (76) (66) (64) (310) ------- ------- ------- ------- ------- Loss before income taxes......................... (1,442) (390) (823) (2,142) (4,797) Income tax provision............................. 73 (347) (174) 311 (137) ------- ------- ------- ------- ------- Net loss applicable to common shares............. $(1,369) $ (737) $ (997) $(1,831) $(4,934) ======= ======= ======= ======= ======= Basic net loss per common share.................. $ (0.31) $ (0.17) $ (0.22) $ (0.41) $ (1.11) ======= ======= ======= ======= ======= Diluted net loss per common share................ $ (0.31) $ (0.17) $ (0.22) $ (0.41) $ (1.11) ======= ======= ======= ======= ======= Average basic common shares...................... 4,412.7 4,434.9 4,439.9 4,428.8 4,429.1 ======= ======= ======= ======= ======= Average diluted common shares.................... 4,412.7 4,434.9 4,439.9 4,428.8 4,429.1 ======= ======= ======= ======= =======
AOL TIME WARNER INC. HISTORICAL CONSOLIDATED STATEMENT OF OPERATIONS (Unaudited)
For the Three For the Six Months Ended Months Ended ------------ ------------ 3/31/02 6/30/02 6/30/02 ------- ------- ------- (millions, except per share amounts) Revenues: Subscriptions............................... $4,740 $5,028 $9,768 Advertising and commerce.................... 1,813 2,070 3,883 Content and other........................... 3,199 3,477 6,676 ------ ------ ------ Total revenues.............................. 9,752 10,575 20,327 Costs of revenues................................ (5,833) (6,167) (12,000) Selling, general and administrative.............. (2,451) (2,567) (5,018) Amortization of goodwill and other intangible assets...................................... (165) (176) (341) Merger and restructuring costs................... (107) - (107) ------ ------ ------- Operating income................................. 1,196 1,665 2,861 Interest expense, net............................ (379) (444) (823) Other expense, net............................... (698) (376) (1,074) Minority interest expense........................ (126) (147) (273) ------ ------ ------- Income (loss) before income taxes and cumulative effect of accounting change................. (7) 698 691 Income tax provision............................. (2) (302) (304) ------ ------ ------- Income (loss) before cumulative effect of accounting change........................... (9) 396 387 Cumulative effect of accounting change........... (54,235) - (54,235) ------- ------ ------- Net income (loss) applicable to common shares $(54,244) $396 $(53,848) ======== ==== ======== Basic income (loss) per common share before cumulative effect of accounting change...... $ - $ 0.09 $ 0.09 Cumulative effect of accounting change........... (12.25) - (12.21) ------- ------ ------- Basic net income (loss) per common share......... $(12.25) $ 0.09 $(12.12) ======= ====== ======= Diluted income (loss) per common share before cumulative effect of accounting change...... $ - $ 0.09 $ 0.09 Cumulative effect of accounting change........... (12.25) - (12.21) ------- ------ ------- Diluted net income (loss) per common share....... $(12.25) $ 0.09 $(12.12) ======= ====== ======= Average basic common shares...................... 4,429.3 4,454.1 4,441.7 ======= ======= ======= Average diluted common shares.................... 4,429.3 4,528.2 4,531.2 ======= ======= =======