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February 24, 2003
BY JONATHAN BLUM, KAGAN
As grim as Adelphia's bankruptcy is, it does have one upside: the monthly financial reports from the bankruptcy court. Rather than being stuffed with usual financial blather, these documents are textbook models of fiscal clarity. The biggest news? Underneath Adelphia's $16 billion mountain of debt lies a real business. Adelphia grew its cash holdings by $31 million in December alone, for a total cash-on-hand of $457 million. The reason for at least some of these positive results is interest payments Adelphia has not had to make. Even factoring in those, net losses only jump by about 50%. That's nothing compared to true flameouts like Global Crossing.
ADELPHIA CASH FLOW AND INTEREST PAYMENT HIGHLIGHTS
| For the month ending Dec. 31 |
| Cash Gained From Operations |
$115.1 |
| Cash Spent on Investments |
$(82.4) |
| Cash Spent on Financing |
$(1.7) |
| Increase in Cash |
$31.1 |
| Total Cash End of Period |
$457.7 |
| Percentage Change in Cash |
7% |
| Reported Chapter 11 Limited Interest Expense |
$32.8 |
| Adjusted Interest Expense to Service Full Debt Load |
$94.4 |
| Increase in Net Loss Due to Adjusted Interest Expense |
-51% |
| NOTE: ALL DOLLAR VALUES IN MILLIONS |
| SOURCE: KAGAN WORLD MEDIA ESTIMATES |
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