Here's a quick peek at what's been bothering me: According to their last 10-Q, for the 9 month period ending September, income from operations decreased from $98,617 MM in 1997 to <129,535>MM in 1998. Excluding one-time merger-related costs and restructuring, the 10Q would have you believe that operating income increased from $141,809 to $210,237. But the cash flow from operations over the same period tells a different story. Excluding changes in balance sheet items, operating cash flow decreased from $114,232MM in 1997 to $92,982 in 1998.
This is the kind of thing I've been hollering about. Operating cash flow goes down, but by using these accounting gimmicks you make it look as if profitability is increasing. Now I could be wrong because there might be some "one-time" expenses (like severance packages and legal fees) buried in the operating cash flow statement, but clearly, the income statement provides a distorted view of what's been happening.
TTFN,
CTC |
