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Table of ContentsThe Basics...............................................................................................................................................................................1
Key Numbers.............................................................................................................................................................1Officers & Employees................................................................................................................................................1Industry Information..................................................................................................................................................2SIC Codes...................................................................................................................................................................2NAICS Codes.............................................................................................................................................................2Top Competitors.........................................................................................................................................................3All Competitors..........................................................................................................................................................3Subsidiaries/Affiliates Covered By Hoover's Online.................................................................................................4
Biographies............................................................................................................................................................................5 Michael D. Capellas, Age 48....................................................................................................................................5 Cindy K. Andreotti....................................................................................................................................................5 Seth D. Blumenfeld...................................................................................................................................................6 Fred Briggs................................................................................................................................................................6 Wayne Huyard, Age 43.............................................................................................................................................6 Nancy M. Higgins.....................................................................................................................................................6 Daniel (Dan) Casaccia...............................................................................................................................................7 Jonathan Crane, Age 55............................................................................................................................................7 Robert T. (Bob) Blakely............................................................................................................................................8 Anastasia D. (Stasia) Kelly, Age 53..........................................................................................................................8 Andrew MacLeod......................................................................................................................................................9 Warren B. Rudman, Age 72......................................................................................................................................9
Overview..............................................................................................................................................................................11
History..................................................................................................................................................................................12
Products/Operations...........................................................................................................................................................13
Other Resources Available On Hoover's Online..............................................................................................................15Other Resources.......................................................................................................................................................15Related Products From Our Trusted Partners..........................................................................................................15
Annual Financials................................................................................................................................................................16
Historical Financials & Employees....................................................................................................................................18Historical Auditors...................................................................................................................................................18
Report Builder − WorldCom, Inc. − Hoover's Online
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The Basics
22001 Loudoun County Pkwy.Ashburn, VA 20147 (Map)http://www.mci.com
Phone: 703−886−5600Fax: 601−460−3333Toll Free: 877−624−1000
WorldCom's split personality −− its operations are divided into two tracking stocks −− hasn't quite made it twice thetelecom powerhouse. The WorldCom Group contains data, Internet, and international operations. The facilities−basednetwork operator manages one of the leading Internet protocol backbone systems. The MCI Group includes consumer andsmall−business units. It is the #2 long−distance carrier in the US, behind ATBut inquiries into the company's accountingpractices in 2002 led to the resignations of its top executives and the filing of fraud charges by the SEC. The company hasfiled a plan of reorganization under bankruptcy protection. It has moved from Mississippi and is changing its name toMCI.
Key Numbers
Company Type Holding Company
Fiscal Year−End December
2002 Sales (mil.) $32,202.0
1−Year Sales Growth (14.5%)
2002 Net Income (mil.) ($9,173.0)
2002 Employees 62,700
1−Year Employee Growth (26.2%)
Auditor KPMG LLP
Officers & Employees
Title Name Age Salary Bonus
Chairman, President, and CEO(To step down as Chairman upon emergencefrom bankruptcy)
Michael D. Capellas 48
President, Enterprise Markets Cindy K. Andreotti
President, MCI International Seth D. Blumenfeld
President, Operations andTechnology
Fred Briggs
President, U.S. Sales and ServiceWayne Huyard 43
EVP, Ethics and BusinessConduct and Chief Ethics Officer
Nancy M. Higgins
EVP, Human Resources Daniel (Dan) Casaccia
President, International andWholesale Markets
Jonathan Crane 55
EVP and CFO Robert T. (Bob) Blakely
EVP, General Counsel, and Anastasia D. (Stasia) Kelly 53
Report Builder − WorldCom, Inc. − Hoover's Online 1
Corporate Secretary
EVP Victoria Harker
SVP, Communications, and Chiefof Staff
Grace Chen Trent
Managing Director, Europe,Middle East, and Africa (EMEA)
Andrew MacLeod
Senior Advisor Warren B. Rudman 72
Industry Information
Telecommunications Services (primary)Data Services
Data Network Operators◊ Internet & Online Services Providers◊ Managed Network Services◊
♦
Fixed−line Voice Services ProvidersLocal Exchange Carriers◊ Long−distance Carriers◊
♦
•
SIC Codes
3661 Telephone and telegraph apparatus
3663 Radio & TV communications equipment
3669 Communications equipment, nec
4812 Radiotelephone communications
4813 Telephone communications, exc. radio
4822 Telegraph & other communications
4841 Cable and other pay TV services
4899 Communication services, nec
7375 Information retrieval service
7379 Computer related services, necs
7382 Security systems services
7389 Business services, nec
NAICS Codes
443112 Radio, Television, and Other Electronics Stores
454112 Electronic Auctions
511140 Directory and Mailing List Publishers
515210 Cable and Other Subscription Programming
517110 Wired Telecommunications Carriers
51721 Wireless Telecommunications Carriers (except Satellite)
517211 Paging
Report Builder − WorldCom, Inc. − Hoover's Online 2
517212 Cellular and Other Wireless Telecommunications
517310 Telecommunications Resellers
517410 Satellite Telecommunications
517510 Cable and Other Program Distribution
517910 Other Telecommunications
518111 Internet Service Providers
518210 Data Processing, Hosting, and Related Services
519190 All Other Information Services
541219 Other Accounting Services
541690 Other Scientific and Technical Consulting Services
56142 Telephone Call Centers
561421 Telephone Answering Services
561499 All Other Business Support Services
561621 Security Systems Services (except Locksmiths)
Top Competitors
AT&T• Cable & Wireless• Sprint•
All Competitors
Accenture• AT&T• BellSouth• BT• Cable & Wireless• Cincinnati Bell• Cisco Systems• Deutsche Telekom• Equant• France Telecom• Global Crossing• IBM• Level 3 Communications• NTT• Qwest• KPN• SBC Communications• Sprint• Sprint FON• Telecom Italia• Telefónica• Telmex• Teleglobe• Telstra• Verizon•
Report Builder − WorldCom, Inc. − Hoover's Online 3
WilTel Communications•
Subsidiaries/Affiliates Covered By Hoover's Online
Digex, Incorporated• Embratel Participações S.A.• MCI Group
SkyTel Communications, Inc.♦ •
WorldCom Group•
Report Builder − WorldCom, Inc. − Hoover's Online 4
Biographies
Michael D. Capellas, Age 48
Chairman, President, and CEO (To step down as Chairman upon emergence from bankruptcy)
Other Company Affiliations
Company Title Salary Bonus
MCI Group Chairman, President, and CEO, WorldCom Inc.
WorldCom Group Chairman, President, and CEO, WorldCom Inc.Recent Work Highlights
Compaq Computer CorporationLast position held, Chairman, President, and CEO♦
•
Hewlett−Packard Company2001: Chairman, $1,600,000 salary♦
•
Biography
Michael D. Capellas, a 26−year veteran of the information technology business, is the incoming chairman and CEO ofWorldCom and former president of Hewlett−Packard company. Capellas, 48, previously was chairman and CEO ofCompaq. He joined the company in 1998 as chief information officer and also served as chief operating officer beforebeing named CEO in July 1999. A seasoned general manager, Capellas has run large, global sales and marketingorganizations, managed quality assurance programs, and has held a broad range of line management positions at a varietyof companies. He spent 16 years with Schlumberger Ltd. in management positions around the world. He was known forhis innovative use of technology in areas ranging from finance to manufacturing. For example, he was a pioneer in usinginformation technology in concurrent engineering and manufacturing. Before joining Compaq, Capellas held seniorpositions at SAP America and Oracle Corp. in areas ranging from application development to sales and generalmanagement. Capellas grew up in Warren, Ohio, although he and his family often lived abroad during his childhood. Heholds a B.B.A. degree (1976) from Kent State University.
Source: Company Web Site, 2002
Cindy K. Andreotti
President, Enterprise Markets
Biography
Cindy K. Andreotti is President of Enterprise Markets for MCI, a leading global communications provider with theindustry's most expansive global backbone and wholly−owned data networks. In her role, Andreotti oversees sales andservice for Business Markets which encompasses U.S. Commercial Accounts, Global Accounts, Wholesale Services,Government Markets, Conferencing, MCI Solutions (managed services), Channel Marketing and Customer Service isPresident of Business Markets for MCI.
Report Builder − WorldCom, Inc. − Hoover's Online 5
Source: Company Web Site, 2003
Seth D. Blumenfeld
President, MCI International
Biography
Seth D. Blumenfeld is president of MCI International − the international operations of MCI. Blumenfeld is responsible fordirecting the company's international affairs, including the day−to−day operations of the company's international officesas well as its international correspondent services offerings.
Source: Company Web Site, 2003
Fred Briggs
President, Operations and Technology
Biography
As MCI's President of Operations and Technology, Fred Briggs oversees the operation of one of the world's mostexpansive, wholly−owned communications networks. He manages the engineering and information systems that makeMCI a leader in converged communications and provide innovative solutions for consumers and customers ranging fromsmall businesses to governments to the elite members of the Fortune 500.
Source: Company Web Site, 2003
Wayne Huyard, Age 43
President, U.S. Sales and Service
Other Company Affiliations
Company Title Salary Bonus
MCI Group President, MCI Mass Markets, WorldCom, Inc.Biography
Wayne Huyard is President of U.S. Sales and Service. He previously served as President of Mass Markets for MCI. Fewpeople can claim to know MCI inside and out better than Wayne Huyard. During his 19−year tenure, Huyard has achievedindustry−leading consumer market share growth and was a force behind the Mass Market unit's most compelling productachievements including Friends & Family, 1−800−COLLECT, 10−10−220, 5¢ Sundays, and now The Neighborhood.
Source: Company Web Site, 2003
Nancy M. Higgins
Report Builder − WorldCom, Inc. − Hoover's Online 6
EVP, Ethics and Business Conduct and Chief Ethics Officer
Biography
Nancy Higgins is executive vice president of Ethics and Business Conduct and Chief Ethics Officer reporting to Chairmanand CEO Michael Capellas. Higgins most recently served as vice president, Ethics and Business Conduct for LockheedMartin. During her tenure at Lockheed Martin, Higgins was credited with revitalizing an established business ethicsprogram, including enhancements to meet new requirements of Sarbanes−Oxley and SEC rules. Prior to that, Higgins wasa senior corporate attorney with The Boeing Company, where she managed complex litigation, conducted major internalinvestigations, counseled the Board of Directors on special litigation matters, provided legal support to the companyethics and self−governance functions, and served as director of Corporate Ethics Policy. She headed Boeing's firstcompany−wide Ethics and Business Conduct organization, which had a charter to develop a values−based ethics andcompliance oversight program. Higgins also designed the ethics program for the new company formed from Boeing'sacquisition of McDonnell Douglas in 1997. Higgins received her bachelors degree from Western Washington StateUniversity, graduating with honors in 1973. She earned her law degree in 1976 from the University of Washington Schoolof Law. Higgins also successfully completed an Advanced Management Programme in 1998 from INSEAD, theinternational business school in Fontainebleau, France.
Source: Company Press Release, October 14, 2003
Daniel (Dan) Casaccia
EVP, Human Resources
Biography
Daniel Casaccia is executive vice president for Human Resources at MCI. In this capacity, Casaccia leads MCI's HRoperations and defines its HR policies for the company's employees worldwide. His organization assists employees asthey navigate human resources programs including compensation and benefits, training and development and corporateHR policies.
Source: Company Web Site, 2003
Jonathan Crane, Age 55
President, International and Wholesale Markets
Biography
Jonathan Crane is president of International and Wholesale Markets. He previously served as executive vice president ofStrategy and Marketing for MCI. In this new role, he identifies strategic opportunities and technologies that help MCIbuild its business. In addition, he is responsible for corporate development, corporate branding, advertising, marketing andproduct development, as well as internal and external communications.
Source: Company Web Site, 2003
Report Builder − WorldCom, Inc. − Hoover's Online 7
Robert T. (Bob) Blakely
EVP and CFO
Recent Work Highlights
Lyondell Chemical Company2000: Chairman, President, and CEO, Wyant Corporation and Wood Wyant, $485,004 salary, $235,421bonus
♦ •
Biography
Robert T. Blakely, Ph.D., is Executive Vice President and Chief Financial Officer of MCI. Blakely brings more than 30years of experience in corporate finance, having served as Executive Vice President and Chief Financial Officer ofTenneco Inc., and of Lyondell Chemical, and as a Managing Director of Morgan Stanley. Mr. Blakely recently completeda four−year appointment as a member of the Financial Accounting Standards Advisory Council, which advises theFinancial Accounting Standards Board on issues relating to accounting rulemaking, financial reporting and disclosure. Healso served as a founding member of Standard & Poor's Issuer Advisory Council until his retirement from Lyondell. TheIssuer Advisory Council, comprised of treasurers and CFOs, provides critical feedback from debt issuers on rating policyand procedures. Blakely served as Tenneco's Executive Vice President and CFO from 1981 to 1999 and held the sameposition with Lyondell Chemical from 1999 to 2002. He will be based in MCI's corporate headquarters in Ashburn, Va.Blakely graduated from Cornell University with a degree in Mechanical Engineering and an M.B.A. He also holds a Ph.Dfrom the Massachusetts Institute of Technology. Blakely has been active in civic and community affairs including servingas a trustee of Cornell University and the Houston Museum of Fine Arts, as well as on the Board of Visitors of theUniversity of Texas M.D. Anderson Cancer Center.
Source: Company Web Site, 2003
Anastasia D. (Stasia) Kelly, Age 53
EVP, General Counsel, and Corporate Secretary
Other Company Affiliations
Company Title Salary Bonus
Owens−Illinois, Inc. DirectorBiography
As the former general counsel for Sears, Roebuck & Co., and before that Fannie Mae, Kelly brings more than 23 years oflegal experience to MCI. While at Sears, Roebuck & Co., Kelly developed the company's legal strategy and was part ofthe Operating Committee charged with crafting and executing against the business strategy for the $40 billion retail andfinancial services entity. Prior to arriving at Sears in 1999, she was the senior vice president, general counsel andcorporate secretary of Fannie Mae. Her experience at Fannie Mae tested her ability to maneuver in a regulatedenvironment and in the public policy arena. Prior to her time at Fannie Mae, Kelly was a partner and associate with theWashington D.C. law firm of Wilmer, Cutler & Pickering LLP, where she represented a number of corporate clients intransactions, as well as bankruptcy, and developed an expertise in technology. She began her legal career at the Dallas lawfirm of Carrington, Coleman, Sloman & Blumenthal in 1981. She is a distinguished member of the Women's BarAssociation of Chicago and was awarded the Myra Blackwell Award for achievement as a lawyer in 2001. Last year, she
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earned the National Organization for Women Legal Education and Defense Fund Aiming High Award. She sits on threeboards of directors, including Owens−Illinois, American Corporate Counsel Association and Equal Justice Works. She isa graduate of the George Washington University Law Center and Trinity College. She is a trustee for Trinity College andsits on the Board of Trustees for the Brookfield Zoo. Originally from Boston, Mass., Kelly spent 15 years of her career inthe Washington D.C. area. She is married and has twin teenage boys.
Source: Company Press Release, August 4, 2003
Andrew MacLeod
Managing Director, Europe, Middle East, and Africa (EMEA)
Biography
As Managing Director of Europe, Middle East and Africa (EMEA) operations, Mr. MacLeod leads MCI's sales, marketingand operations in the EMEA region. Prior to joining MCI, MacLeod served as Chief Operating Officer of Cable andWireless Global where he managed all operational activities worldwide, including the development of product; design anddeployment of all network and IT systems; and the operation of customer service, provisioning and billing activities. Priorto joining Cable and Wireless, he had served in senior executive sales and management positions with Nortel, STCSubmarine Systems, and Pirelli. MacLeod holds a Masters Degree in Materials Physics from Keble College, OxfordUniversity and an MBA from Warwick Business School at Warwick University. He resides in Winchester, UK, with hiswife and two children.
Source: Company Press Release, June 2, 2003
Warren B. Rudman, Age 72
Senior Advisor
Other Company Affiliations
Company Title Salary Bonus
Allied Waste Industries, Inc. Director
Boston Scientific Corporation Director
The Chubb Corporation Director
Collins & Aikman Corporation Director
Raytheon Company DirectorBiography
As a senior advisor to Chairman and CEO Michael Capellas and its Board of Directors, former US Senator Warren B.Rudman focuses his attention on ethics and corporate governance, assisting the company in completing and implementingits expanded corporate governance initiatives. Rudman served two terms in the Senate, starting in 1980. During his tenure,he established a record of independence by refusing to accept out−of−state political action committee donations. Perhapshis best−known accomplishment came in 1985, when he co−authored the Gramm−Rudman−Hollings deficit reductionlaw, a historic step that imposed discipline and accountability on the chaotic budget process in order to reduce the federaldeficit. Additionally, Rudman was Chairman of the Senate Ethics Committee. Besides his current law practice, in 1992,Rudman co−founded the Concord Coalition, a nonpartisan, grassroots organization advocating fiscal responsibility while
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ensuring Social Security, Medicare, and Medicaid are secure for all generations. In 1994−95, Rudman chaired a SelectCommittee appointed by the board of governors of the National Association of Securities Dealers (NASD) to review theNASD governance and oversight of the NASDAQ Stock Market. Rudman graduated from Syracuse University in 1952and subsequently graduated from the Boston College Law School, Boston, Mass., 1960. After serving in the U.S. Armyinfantry during the Korean War, Rudman began a career in law in New Hampshire in 1960. He later served as legalcounsel to the governor of New Hampshire in 1970 and as the state's Attorney General from 1970 to 1976.
Source: Company Press Release, October 28, 2003
Report Builder − WorldCom, Inc. − Hoover's Online 10
Overview
WorldCom's split personality −− its operations are divided into two tracking stocks −− hasn't quite made it twice thetelecom powerhouse. The WorldCom Group contains data, Internet, and international operations. The facilities−basednetwork operator manages one of the leading Internet protocol backbone systems. The MCI Group includes consumer andsmall−business units. It is the #2 long−distance carrier in the US, behind ATBut inquiries into the company's accountingpractices in 2002 led to the resignations of its top executives and the filing of fraud charges by the SEC. The company hasfiled a plan of reorganization under bankruptcy protection. It has moved from Mississippi and is changing its name toMCI.
Former CEO Bernie Ebbers built WorldCom like Tinkertoys, with 60 acquisitions in the 1990s. The tracking stocks werecreated in an attempt to shift the company away from its roots as a traditional long−distance competitor and to focus onthe growing demands for data and Internet services. But both tracking stocks slumped amid a general downturn in thetelecom industry. Then, questions about WorldCom's accounting procedures, including loans made to the CEO, led toEbbers' resignation in April 2002. In June of that year the company fired CFO Scott Sullivan after an internal auditrevealed accounting irregularities that forced WorldCom to restate its finances for the previous three years, to the tune ofsome $9 billion. Until May 2002 WorldCom's auditor had been Arthur Andersen.
In November 2002, WorldCom named Michael Capellas as its chairman, president, and CEO. The former president ofHewlett−Packard and former chairman and CEO of Compaq Computer was selected to replace long−time WorldComchairman Bert Roberts and John Sidgmore, the company's interim CEO, who led the company when it filed forbankruptcy (Sidgmore died in 2003 from cancer). The company agreed to pay investors $500 million in a settlement withthe SEC.
The WorldCom Group, which includes the leading IP (Internet protocol) backbone carrier UUNET, expanded its Internetservices in 2001 when it bought telecom carrier Intermedia and gained control of managed hosting provider Digex. Thecompany in 2003 acquired full ownership in Digex, gaining authorization from the bankruptcy court to acquire the stock itdid not yet own.
Other services offered by the group include dial−up Internet access, wireless messaging (SkyTel), and prepaid callingcards. It also includes the company's wholesale long−distance services.
WorldCom cut 17,000 workers, or about 20% of its work force, in 2002 and the next year the company said it would trimanother 5,000 jobs. It also is selling or closing some noncore business units including its wireless resale business. It alsohas announced plans to reorganize its Asian Pacific operations, including a reduction in the region's workers and arefocusing of its network, and it has announced plans to sell its controlling stake in Brazilian firm Embratel.
The company's plan to eliminate its tracking stock structure has been delayed by a court order. Despite these difficulties,in August 2002 Germany's Deutsche Bank acquired an 11% stake in WorldCom Group.
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History
In 1963 John Goeken formed Microwave Communications, Inc. (MCI) to offer long−distance phone service forbusinesses between St. Louis and Chicago. Financial consultant William McGowan signed on in 1968 with visions of anational network to challenge AT&T. (Goeken left to form FTD and Airfone.) In 1969 the FCC gave MCI its Chicago−St.Louis license, and the company (renamed MCI Communications in 1971) began service the next year.
MCI began offering Execunet private lines with customer−owned switches in 1974. AT&T tried to disconnect Execunet,but a court intervened. When AT&T tripled its interconnection fees, MCI began antitrust proceedings and was awardeddamages in 1980 −− the beginning of the end for Ma Bell.
Bill Fields started WorldCom in Hattiesburg, Mississippi, in 1983 as Long Distance Discount Services (LDDS). Fieldsand other investors, including friend Bernie Ebbers, sketched out company plans on a napkin at a local diner. After anearly profitable run, LDDS was $1.5 million in debt by 1985. Ebbers (whose previous jobs included car salesman, highschool basketball coach, club bouncer, and motel owner), became CEO and steered the company back into the blackwithin six months. LDDS went public in 1989 when it merged with a publicly traded long−distance company. Globalaspirations spurred LDDS to change its name to WorldCom in 1995.
Meanwhile, at MCI, Bert Roberts hopped in the CEO seat in 1991. Two years later British Telecommunications (BT, nowBT Group) bought 20% of MCI, and the companies formed global joint venture Concert Communications.
BT offered to buy MCI in 1996 but cut the price by 20% in 1997 because of MCI's debt from heavy investment in localphone networks. WorldCom, which had continued its acquisition spree (including MFS, parent of Internet backboneprovider UUNET), made its own $37 billion bid; MCI accepted. Still relatively unknown in the corporate world, Ebbers−− a devout Christian who lived on a farm in rural Mississippi −− had trumped BT and cemented a wheeler−dealerreputation by closing one of the largest acquisitions in history.
MCI took a stake in Brazil's Embratel in 1998, and WorldCom bought the network units of America Online andCompuServe. To complete the merger that year, MCI sold its Internet access business to Cable & Wireless, and BT cut itsties to the company, buying MCI's Concert stake. Roberts became chairman of the new MCI WorldCom, and EbbersCEO. That company also bought US competitive local service provider Brooks Fiber Properties. (As CEO Ebbers enactedwidespread cost−cutting measures to help offset the company's purchases, including a dictate that executives share budgetmotel rooms while on business trips.)
In 1999 MCI WorldCom transferred its computer and software operations to EDS in return for EDS's networkingoperations; EDS also bought information technology business MCI Systemhouse. Reentering the consumer Internetaccess business, the firm allied with CompuServe and began assembling a wireless cable network to deliver high−speedInternet access.
MCI WorldCom bought wireless messaging firm SkyTel in 1999. It also made a bid to acquire Nextel but backed outbecause of that company's debt. Then it announced a monster acquisition, agreeing to buy long−distance rival Sprint for$115 billion in stock and $14 billion in assumed debt. But the next year regulators in Europe and the US balked, and thedeal was dropped.
Also in 2000 the company dropped MCI from its name and became WorldCom. That year Ebbers' star was tarnishedwhen word got out that he had to sell some of his WorldCom shares to meet margin calls from his broker. The company'sboard then authorized loans to Ebbers to keep him from having to sell more stock. (WorldCom's 2002 proxy statementshowed that Ebbers owed the company $366.5 million.)
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Products/Operations
WorldCom has operations in more than 65 countries worldwide. The company provides services over its own facilitiesand leased facilities in Austria, Belgium, Denmark, France, Germany, Ireland, Italy, Luxembourg, the Netherlands,Norway, Spain, Sweden, Switzerland, the UK, and the US. It offers international services over leased facilities in selectedAsian markets, including Australia, Hong Kong, Indonesia, Japan, Malaysia, New Zealand, the Philippines, Singapore,Thailand, South Korea, and Taiwan. It also operates data centers throughout Asia, Europe, and the US.
2001 Sales $ mil. % of totalWorldCom Group Data 8,620 25 Voice 6,591 19 Internet 3,160 9 International 2,977 8MCI Group Consumer 7,227 21 Wholesale 2,641 7 Alternate channels & small business 2,427 7 Dial−up Internet 1,536 4
Total 35,179 100
Selected Services
Consumer• Calling cards• International calling• Internet access• Local access service• Local toll calling• Long−distance plans• Personal 800 number• Wireless messaging• Small Business• Calling cards• International calling• Local toll calling• Long distance plan• Toll−free service• Wireless messaging• Corporate• Internet and network access• ATM (asynchronous transfer mode) transmission• Conferencing• CPE (customer premise equipment)• Frame relay• Managed network and information services• Private lines• Voice services• Wireless messaging and paging•
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Selected Subsidiaries and Alliances:
Brooks Fiber Communications−LD, Inc.• Gemini Submarine Cable System Limited (50%, Bermuda)• Intermedia (telecom services)• Digex (Web hosting)• MFS Telecom, Inc.• MMDS Satellite Ventures, Inc. (50%)• MobileComm Europe Inc.• Mtel Service Corporation• OzEmail Pty Limited (Australia)• SkyTel Communications, Inc. (wireless messaging services)• Telecom*USA, Inc.• TelQuest Satellite Services LLC (57%)• Wireless Enterprises LLC (75%)• Wireless One, Inc.• WorldCom Latin America• Avantel S.A. de C.V. (49%, joint venture with Grupo Financiero Banamex−Accival, long−distance provider,Mexico)
•
Embratel Participacoes S.A. (19% economic, 52% voting, long−distance provider, Brazil)• Proceda (IT outsourcing services, Brazil)• SkyTel Latin America (wireless messaging services)• UUNET (Internet protocol (IP) backbone network services)•
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Other Resources Available On Hoover's Online
News for WorldCom (last 90 days)
Company Press Release Archive
Other Resources
Headquarters Map• SEC Filings
10−K Filings♦ •
Investor Relations • Financial Data Definitions• Market Data Definitions• Comparison Data Definitions• Historical Financials & Employees Definitions•
Related Products From Our Trusted Partners
Buy Reports and Books
D&B Business/Credit Reports: WorldCom, Inc.(D&B, Feb 1, 2004, Business Reports)
•
WorldCom IP Services(Gartner, Inc., Jan 15, 2003, Business Reports)
•
WorldCom’s Situation Goes From Bad to Worse:Recommendations: GigaCollaboration(Giga Information Group, Inc., Jul 16, 2002, Business Reports)
•
WorldCom, Inc.: Company Profile(Datamonitor, Feb 1, 2004, Business Reports)
•
Quantitative Report for WCOEQ(ValuEngine, Inc., Jan 1, 2004, Business Reports)
•
Tomorrow's Telephone Technology: The VoIP Revolution(Hoover's, Inc., Feb 1, 2004, Business Reports)
•
Wired Telecommunications Carriers Major Companies Report(Harris Industry Reports, Aug 12, 2003, Business Reports)
•
Data Network Operators: Financial Analysis Profiles(BizMiner, Dec 23, 2003, Business Reports)
•
Additional 3rd Party Libraries
Additional Research On WorldCom
Corporate Hierarchy •
Report Builder − WorldCom, Inc. − Hoover's Online 15
Annual Financials
All amounts in millions of US Dollars
Income Statement Dec 02 Dec 01 Dec 00
Revenue 32,202.0 37,668.0 39,344.0
Cost of Goods Sold 4,339.0 5,377.0 5,092.0
Gross Profit 27,863.0 32,291.0 34,252.0
Gross Profit Margin 86.5% 85.7% 87.1%
SG&A Expense 28,794.0 38,884.0 74,846.0
Depreciation & Amortization 3,291.0 4,851.0 8,485.0
Operating Income (4,222.0) (11,444.0) (49,079.0)
Operating Margin −− −− −−
Nonoperating Income 0.0 0.0 459.0
Nonoperating Expenses 4,968.0 3,030.0 1,300.0
Income Before Taxes (9,190.0) (14,474.0) (49,920.0)
Income Taxes 54.0 503.0 (1,915.0)
Net Income After Taxes (9,244.0) (14,977.0) (48,005.0)
Continuing Operations (9,244.0) (14,977.0) (48,005.0)
Discontinued Operations (90.0) (1,323.0) (449.0)
Total Operations (9,334.0) (16,300.0) (48,454.0)
Total Net Income (9,173.0) (15,597.0) (48,909.0)
Net Profit Margin −− −− −−
Diluted EPS from Continuing Operations ($) −− −− −−
Diluted EPS from Discontinued Operations ($) −− −− −−
Diluted EPS from Total Operations ($) −− −− −−
Diluted EPS from Total Net Income ($)
Dividends per Share −− −− −−
Balance Sheet Dec 02 Dec 01 Dec 00
Assets
Current Assets
Cash 2,820.0 1,290.0 −−
Net Receivables 5,611.0 4,202.0 −−
Inventories 0.0 0.0 −−
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Other Current Assets 1,218.0 2,874.0 −−
Total Current Assets 9,649.0 8,366.0 −−
Net Fixed Assets 14,190.0 21,486.0 −−
Other Noncurrent Assets 2,697.0 3,854.0 −−
Total Assets 26,536.0 33,706.0 −−
Liabilities and Shareholders' Equity Dec 02 Dec 01 Dec 00
Current Liabilities
Accounts Payable 1,080.0 3,081.0 −−
Short−Term Debt 885.0 1,309.0 −−
Other Current Liabilities 5,457.0 9,000.0 −−
Total Current Liabilities 7,422.0 13,390.0 −−
Long−Term Debt 1,046.0 29,310.0 −−
Other Noncurrent Liabilities 39,869.0 3,509.0 −−
Total Liabilities 48,337.0 46,209.0 −−
Shareholders' Equity
Preferred Stock Equity 494.0 438.0 −−
Common Stock Equity (22,295.0) (12,941.0) −−
Total Equity (21,801.0) (12,503.0) −−
Shares Outstanding (mil.) −− −− −−
Cash Flow Statement Dec 02 Dec 01 Dec 00
Net Operating Cash Flow 1,200.0 2,845.0 4,227.0
Net Investing Cash Flow (1,502.0) (6,122.0) (11,163.0)
Net Financing Cash Flow 1,942.0 4,217.0 6,682.0
Net Change in Cash 1,530.0 908.0 (273.0)
Depreciation & Amortization 3,291.0 4,851.0 8,485.0
Capital Expenditures (1,660.0) (6,465.0) (11,668.0)
Cash Dividends Paid 159.0 86.0 2.0
Data Definitions
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Historical Financials & Employees
Income Statement
YearRevenue
($ mil.)Net Income
($ mil.)Net Profit
MarginEmployees
Dec 02 32,202.0 (9,173.0) −− 62,700
Dec 01 37,668.0 (15,597.0) −− 85,000
Dec 00 39,344.0 (48,909.0) −− 86,100
Dec 99 37,120.0 4,013.0 10.8% 77,000
Dec 98 17,678.0 (2,669.0) −− 77,000
Dec 97 7,351.4 383.7 5.2% 20,300
Dec 96 4,485.1 (2,213.3) −− 13,000
Dec 95 3,639.9 267.7 7.4% 7,500
Dec 94 2,220.8 (122.3) −− 4,379
Dec 93 1,144.7 104.2 9.1% 2,440
2002 Year−End Financials
Debt ratio −−
Cash ($ mil.) 2,820.0
Current ratio 1.30
Long−term debt ($ mil.) 1,046.0
Shares Outstanding (mil.) −−
Dividend yield −−
Dividend payout −−
Market value ($ mil.) −−
Historical Auditors
Auditor Name Year
Arthur Andersen LLP 1999
Arthur Andersen LLP 1998
Arthur Andersen LLP 1997
Arthur Andersen LLP 1996
Arthur Andersen LLP 1995
Arthur Andersen LLP 1994
Arthur Andersen LLP 1993
Data Definitions
Report Builder − WorldCom, Inc. − Hoover's Online 18
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Report Builder − WorldCom, Inc. − Hoover's Online 19
