JPMorgan - KASE

Nine Months
Ended
Year Ended December 31, September 30,
1999 2000 2001 2001 2002
(unaudited)
($ in thousands, except ratios)
Balance Sheet Data (at end of period):
Canadian GAAP:
Cash and short-term deposits ............... 30,748 59,298 64,812 99,248 162,246
Working capital/(deficit) (1) ................. (176,396) 33,808 61,393 89,741 168,762
Totalassets .............................. 141,437 414,526 572,470 527,153 737,384
Total long-term debt (2) .................... — 82,048 277,767 249,125 293,197
Total shareholders’ equity/(deficit) .......... (87,582) 185,043 132,140 108,799 247,223
U.S. GAAP:
Total shareholders’ equity ................. (117,673) 140,800 79,603 63,387 186,593
Other Financial Data:
EBITDA (3) ................................ 55,049 287,975 291,518 246,718 243,590
Cash flow (4) .............................. 16,967 179,446 194,654 167,326 158,217
Cash flow from operating activities ......... 45,439 210,978 146,258 119,768 126,669
Funds provided by (used for) financing ...... (961) (144,775) 2,001 (29,659) 35,183
Funds (used for) investing ................. (15,196) (37,653) (142,745) (50,159) (64,418)
Capital expenditures ...................... 15,318 21,627 110,207 55,215 101,559
Ratio of EBITDA to cash interest expense .... 2.3x 15.4x 14.9x 20.3x 9.3x
Ratio of earnings to fixed charges (5) ......... 2.1x 15.1x 13.2x 18.4x 8.3x
Ratio of net debt to EBITDA (6) (7) ............ 3.0x 0.2x 0.9x 0.6x 0.6x
(1) Working capital comprises current assets less current liabilities.
(2) $61.1 million and $62.7 million of these amounts represent non-recourse debt incurred by our Kazgermunai joint venture as
of December 31, 2001 and September 30, 2002, respectively.
(3) “EBITDA” is defined as earnings before interest, dividends paid on preference securities, income taxes, depreciation,
depletion and amortization. EBITDA is presented as additional information because we understand that it is one measure
used by certain investors to determine our operating cash flow and historical ability to meet debt service and capital
expenditure requirements. However, other companies may present EBITDA differently than we do. EBITDA is not a measure
of financial performance under generally accepted accounting principles and should not be considered as an alternative to
cash flow from operating activities or as a measure of liquidity or an alternative to net income as indicators of our operating
performance or any other measures of performance derived in accordance with generally accepted accounting principles.
The following sets forth a reconciliation of EBITDA to our net income:
Netincome ...................................... 8,513 154,930 169,340 146,296 117,430
Taxes ............................................ 17,671 99,657 68,394 63,678 71,018
Depletion and depreciation ........................ 4,991 14,680 34,254 24,618 29,064
Interest .......................................... 23,874 18,708 19,530 12,126 26,078
EBITDA .......................................... 55,049 287,975 291,518 246,718 243,590
(4) Before changes in non-cash operating working capital.
(5) The term “earnings” is the amount of income before income taxes from continuing operations before adjustment for
minority interests in consolidated subsidiaries or income or loss from equity investees, plus fixed charges, plus amortization of
capitalized interest, plus distributed income to equity investees, plus the share of pre-tax losses of equity investees for which
charges arising from guarantees are included in fixed charges, less interest capitalized, less preference security dividend
requirements of consolidated subsidiaries, less the minority interest in pre-tax income of subsidiaries that have not incurred
fixed charges and less unusual items. The term “fixed charges” means the sum of the following: (a) interest expensed or
capitalized, (b) amortized premiums, discounts and capitalized expenses related to indebtedness, (c) an estimate of the
interest within rental expense, and (d) preference security dividend requirements of consolidated subsidiaries. The term
“preference security dividend” is the amount of pre-tax earnings that is required to pay the dividends on outstanding
preference securities, computed as the amount of the dividend divided by one minus the effective income tax rate applicable
to continuing operations.
(6) “Net debt” represents total debt less cash and cash equivalents.
(7) Nine month figures are calculated on an annualized basis.
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