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To: Raymond Duray who wrote (14477)	2/5/2002 12:07:18 AM
From: Ilaine	Read Replies (2) \| Respond to of 74559

Oh, come on. It's not "details" to me, and you know it. It's bread and butter.

To: Raymond Duray who wrote (14477)	2/5/2002 6:22:15 AM
From: elmatador	Read Replies (1) \| Respond to of 74559

Williams aims to avoid ch.11, posts higher Q4 loss By Ouida Taaffe, Total Telecom COMMENTS: I see at least two more in the next three months, Ray. 04 February 2002 Williams Communications, of Tulsa, Oklahoma, insisted in its analysts' conference call Monday that it would not file for chapter 11 and that it is fully funded through 2003. The company also announced a consolidated net loss of US$372 million, or 76 cents per share, for the fourth quarter of 2001, up from US$268 million in Q3. However, the unaudited results were said to be in line with company and market expectations. The management stressed that there would be no significant dilution of the stakes of equity holders, following the review of its financial situation that is currently underway with bank lenders. The company believes it can take a "disciplined approach" to debt reduction and avoid sacrificing any stakeholder group. (In most major restructurings, the shareholders go away empty-handed). Williams had debt of around US$5 billion and reported cash and marketable securities of US$1 billion as of 31 December 2001. The operating EBITDA in 2001 was minus 109 million. (As of September 31, 2001,the company had had cash of about US$391 million, and short-term investments of about $1 billion.) Williams said its banks consider it may be in default under existing credit agreements. It expects to make a public announcement on the discussions with its banks after the end of February. Guidance on its outlook for 2002 is scheduled for 13 February. Aryeh Bourkoff, a high-yield analyst at UBS Warburg, said of the company: "As with the balance of the emerging telecommunications companies, Williams has acknowledged the need to restructure in some fashion in order to take pressure off its significantly leveraged balance sheet. The question that remains is the timing and nature of that restructuring." Analysts taking part in Monday's conference call pressed hard for details of how Williams will tackle the restructuring issue. One asked whether the company might not be at a disadvantage to those that have taken the "substantial" debt restructuring route. Williams announced a Q4 2001 consolidated net loss of US$372 million, or 76 cents per share. This figure includes net charges of US$215 million due to a wireless hub capacity investment and US$20 million related to cost-based investments. It does not include any impairment charges on "long-lived" assets. The loss for the year was US$1.183 billion, just slightly below the annual revenue figure of US$1.185 billion. The Q4 revenue was US$330.3 million, which was a sequential increase of 11% and a year-on-year increase of 28%. Around 35% of Williams' revenue is generated by business from SBC. The results were preliminary and unaudited - and also in line with both company guidance and market expectations - and contained no dark fiber income. Williams had a consolidated operating EBITDA of minus US$12.8 million, up from minus US$22.5 million in Q3 2001. The figure for the year was minus US$109 million. The company's gross margin as a percentage of revenue for the year was 13.2%. Network services, which is Williams' long-haul business and the biggest revenue driver for the company, had Q4 revenue of US$302.8 million, a 36% increase on Q4 2000. The net operating EBITDA loss was US$3.3 million, well up on minus US$15 million in Q3, 2001. This was attributed to a focus on profitable revenue growth and expense management. Vyvx Broadband Media had Q4 revenues of US$41.1 million, down US$2.1 million on Q3, 2001. The revenue decline was said to be due to transmission outfall in the wake of 11 September. The EBITDA loss in this part of the business in Q4 was US$9.1 million, well up on the US$6.8 million loss in Q3. The decline in EBITDA was attributed to costs incurred in the iBEAM acquisition, which is said to "substantially" improve Williams' broadband media capabilities. The capex in Q4 was US$305 million, which includes US$3.8 million in interest costs. The monies were mainly used to expand carrier and media services and to extend Williams' network in major metro markets.