04-HP-876_newMDA.qxd 12/15/04 3:04 PM Page 54 Consolidated S tatements of Income The accompanying notes are an integral par of these statements.  55 Years Ended September 30, 2004 2003 2002 (in thousands, except per share amounts) REVENUES Operating revenues $593,326 $507,331 $523,803 Income from investments 27,602 7,953 28,076 620,928 515,284 551,879 COSTS AND EXPENSES Direct operating costs 416,631 345,537 361,669 Depreciation 94,425 82,513 61,447 Asset impairment charge 51,516 – – General and administrative 37,661 41,003 36,563 Interest 12,695 12,289 980 612,928 481,342 460,659 Income from continuing operations before income taxes and equity in income (loss) of affiliates 8,000 33,942 91,220 Provision for income taxes 4,365 14,649 40,573 Equity in income (loss) of affiliates net of income taxes 724 ( 1,420) 3,059 Income from continuing operations 4,359 17,873 53,706 Income from discontinued operations – – 9,811 NET INCOME $ 4,359 $ 17,873 $ 63,517 Basic earnings per common share: Income from continuing operations $ 0.09 $ 0.36 $ 1.08 Income from discontinued operations – – 0.19 Net income $ 0.09  $ 0.36 $  1.27 Diluted earnings per common share:  Income from continuing operations $ 0.09 $ 0.35 $ 1.07 Income from discontinued operations – – 0.19 Net income $ 0.09 $ 0.35  $ 1.26 Average common shares outstanding (in thousands): Basic 50,312 50,039 49,825 Diluted 50,833 50,596 50,345