Appendix C

Appendix C

COTC and Cal-Ore Historical Cash Flow from Operations

6-Year

3-Year

Average

Average

2003

2002

2001

2000

1999

1998

1998 - 2003

2001 - 2003

Recorded COTC Consolidated Cash Flow From Operations

1,134,813

4,040,835

(400,137)

1,864,486

2,064,719

36,275

1,456,832

1,591,837

Recorded Cal-Ore Cash Flow from Operations

3,121,839

1,689,226

1,170,403

1,673,237

1,554,531

1,554,531

1,793,961

1,993,823

Adjusted COTC and Cal-Ore Historical Cash Flow from Operations

The following spreadsheets adjust COTC's and Cal-Ore's recorded cash flow from operations to obtain a picture of how much additional cash COTC and Cal-Ore might be able to generate annually to pay for capital expenditures and debt incurred by Lynch Interactive to acquire COTC.

6-Year

3-Year

Average

Average

2003

2002

2001

2000

1999

1998

1998 - 2003

2001 - 2003

Recorded COTC Consolidated Cash Flow From Operations

1,134,813

4,040,835

(400,137)

1,864,486

2,064,719

36,275

1,456,832

1,591,837

Plus: Interest Expense (Assumes COTC's Existing Debt Paid Off)

423,865

192,606

179,766

196,234

199,606

216,546

234,771

265,412

Less: State Tax Benefit for Interest Deduction (5%)

(21,193)

(9,630)

(8,988)

(9,812)

(9,980)

(10,827)

(11,739)

(13,271)

Less: Federal Tax Benefit for Interest Deduction (34%)

(144,114)

(65,486)

(61,120)

(66,720)

(67,866)

(73,626)

(79,822)

(90,240)

Plus: Equity Income from Investments (Assumes Equity Income from Investments Can Be Converted into Cash)

397,804

404,332

516,225

500,625

248,027

143,689

368,450

439,454

= Adjusted Cash from Operations Available for Debt & Cap. Ex.

1,791,175

4,562,657

225,745

2,484,814

2,434,506

312,057

1,968,492

2,193,192

Recorded Cal-Ore Cash Flow from Operations

3,121,839

1,689,226

1,170,403

1,673,237

1,554,531

1,554,531

1,793,961

1,993,823

Plus: Interest Expense (Assumes COTC's Existing Debt Paid Off)

249,343

249,344

249,345

249,346

249,347

249,348

249,346

249,344

Less: State Tax Benefit for Interest Deduction (5%)

(12,467)

(12,467)

(12,467)

(12,467)

(12,467)

(12,467)

(12,467)

(12,467)

Less: Federal Tax Benefit for Interest Deduction (34%)

(84,777)

(84,777)

(84,777)

(84,778)

(84,778)

(84,778)

(84,777)

(84,777)

Plus: Equity Income from Investments (Assumes Equity Income from Investments Can Be Converted into Cash)

0

0

0

0

0

0

0

0

= Adjusted Cash from Operations Available for Debt and Cap. Ex.

3,273,938

1,841,326

1,322,503

1,825,338

1,706,633

1,706,633

1,946,062

2,145,923

Source of Information for 2001 - 2003: Supplement filed on July 30, 2004, Exhibits E and F.

Source of Information for 1998 - 2000: Supplement filed on November 22, 2004, Exhibit A.

Note: COTC consolidated cash flow from operations includes Cal-Ore.

Note: The information provided by the Joint Applicants shows that Cal-Ore had the same cash flow from operations in both 1998 and 1999, which was probably an error on the Joint Applicants' part. However, the cash flow from operations was likely similar, as net income for both years was similar.


Appendix C

COTC and Cal-Ore Historical Cash Flow from Operations

							6-Year	3-Year
							Average	Average
	2003	2002	2001	2000	1999	1998	1998 - 2003	2001 - 2003

Recorded COTC Consolidated Cash Flow From Operations	1,134,813	4,040,835	(400,137)	1,864,486	2,064,719	36,275	1,456,832	1,591,837

Recorded Cal-Ore Cash Flow from Operations	3,121,839	1,689,226	1,170,403	1,673,237	1,554,531	1,554,531	1,793,961	1,993,823




Adjusted COTC and Cal-Ore Historical Cash Flow from Operations
The following spreadsheets adjust COTC's and Cal-Ore's recorded cash flow from operations to obtain a picture of how much additional cash COTC and Cal-Ore might be able to generate annually to pay for capital expenditures and debt incurred by Lynch Interactive to acquire COTC.


							6-Year	3-Year
							Average	Average
	2003	2002	2001	2000	1999	1998	1998 - 2003	2001 - 2003

Recorded COTC Consolidated Cash Flow From Operations	1,134,813	4,040,835	(400,137)	1,864,486	2,064,719	36,275	1,456,832	1,591,837
Plus: Interest Expense (Assumes COTC's Existing Debt Paid Off)	423,865	192,606	179,766	196,234	199,606	216,546	234,771	265,412
Less: State Tax Benefit for Interest Deduction (5%)	(21,193)	(9,630)	(8,988)	(9,812)	(9,980)	(10,827)	(11,739)	(13,271)
Less: Federal Tax Benefit for Interest Deduction (34%)	(144,114)	(65,486)	(61,120)	(66,720)	(67,866)	(73,626)	(79,822)	(90,240)
Plus: Equity Income from Investments (Assumes Equity Income from Investments Can Be Converted into Cash)	397,804	404,332	516,225	500,625	248,027	143,689	368,450	439,454
	397,804	404,332	516,225	500,625	248,027	143,689	368,450	439,454
= Adjusted Cash from Operations Available for Debt & Cap. Ex.	1,791,175	4,562,657	225,745	2,484,814	2,434,506	312,057	1,968,492	2,193,192


Recorded Cal-Ore Cash Flow from Operations	3,121,839	1,689,226	1,170,403	1,673,237	1,554,531	1,554,531	1,793,961	1,993,823
Plus: Interest Expense (Assumes COTC's Existing Debt Paid Off)	249,343	249,344	249,345	249,346	249,347	249,348	249,346	249,344
Less: State Tax Benefit for Interest Deduction (5%)	(12,467)	(12,467)	(12,467)	(12,467)	(12,467)	(12,467)	(12,467)	(12,467)
Less: Federal Tax Benefit for Interest Deduction (34%)	(84,777)	(84,777)	(84,777)	(84,778)	(84,778)	(84,778)	(84,777)	(84,777)
Plus: Equity Income from Investments (Assumes Equity Income from Investments Can Be Converted into Cash)	0	0	0	0	0	0	0	0
	0	0	0	0	0	0	0	0
= Adjusted Cash from Operations Available for Debt and Cap. Ex.	3,273,938	1,841,326	1,322,503	1,825,338	1,706,633	1,706,633	1,946,062	2,145,923


Source of Information for 2001 - 2003: Supplement filed on July 30, 2004, Exhibits E and F.

Source of Information for 1998 - 2000: Supplement filed on November 22, 2004, Exhibit A.

Note: COTC consolidated cash flow from operations includes Cal-Ore.

Note: The information provided by the Joint Applicants shows that Cal-Ore had the same cash flow from operations in both 1998 and 1999, which was probably an error on the Joint Applicants' part. However, the cash flow from operations was likely similar, as net income for both years was similar.