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To: Duane L. Olson who wrote (32312)	1/13/2003 12:58:43 PM
From: Dale Baker	Read Replies (1) \| Respond to of 118717

TWTC - start here biz.yahoo.com and note that operating profit is $96 million while SGA is only $56 million. So there is $40 million in real cash to play with. Of that, $26 million goes to interest payments. Now flip to the cash flow page biz.yahoo.com and you can see the $63 million depreciation backed out from the operating cash flow. Now you get $11-14 million in "real cash flow" left over. From that TWTC pays $25 million in capex costs. So they lose $12 million in real negative cash flow at the end of the quarter. The key to TWTC's eventual success is the operating cash leftover to pay interest and capex, thanks to their margins. To make it in the long run, TWTC has to grow revenues and keep or improve those margins. It's the only way they will have the cash in 2008 to start paying off their bonds.