Glass House - my thoughts on CWON
This is one is coyote ugly.
I dont care about any volume or any news.
I just want to add higher, pleaaaaaaaaaaaaaaaaaaaaase.
Short and check back in 3 months.
cash is 3.46/share
debt/equity is 1.25
Last 4 quarter EPS:
-.81, -1.50, -1.87, and latest -1.96
July quarter estimate is -1.91
Sep quarter estimate is -1.86
2001 estimate is -7.54
2002 estimate is -5.98
They could have a tad bit of difficulty raising more money!!!!!!!!!!!!!
They are out of cash by Sep 30, 2001
Enjoy the ride to ZIPITY
traderpulse.com
Michail
From recent 10-Q
LIQUIDITY AND CAPITAL RESOURCES
At March 31, 2001, we had $130.8 million in cash and cash equivalents and $23.6 million in restricted cash. We had $83.0 million available under our revolving credit facility.
Credit Facility. Our credit facility permits us to borrow up to $350.0 million, subject to various conditions, covenants and restrictions, including those described in Note 7 to the financial statements, with maximum borrowing limits to be reduced starting in 2003 by 5.0% with increasing reductions thereafter for each year until maturity in February 2009. As of March 31, 2001, there was $125.0 million outstanding under the term B loan, $125.0 million outstanding under the term A loan and $17.0 million outstanding under the $100.0 million revolving portion. The senior credit facility, which is secured by liens on substantially all of our and our subsidiaries' assets and a pledge of our subsidiaries' common stock, contains covenants and events of default that are customary for credit of this nature. We also have $180.0 million outstanding under our subordinated debt facility.
Cash Flows. We have incurred significant operating and net losses since our inception. We expect to continue to experience operating losses and negative adjusted EBITDA as we expand our operations and build our client base. As of March 31, 2001, we had an accumulated deficit of $319.5 million. Net cash used for operating activities was approximately $37.4 million and $14.8 million for the three months ended March 31, 2001 and 2000, respectively. The net cash used for operating activities during the three months ended March 31, 2001 was primarily due to net losses.
Net cash (used in)/ provided by financing activities was $(1.0) million and $98.9 million for the three months ended March 31, 2001 and 2000, respectively. Net cash used in financing activities for the three months ended March 31, 2001 was primarily related to payment of financing costs in connection with the company's senior credit facility. Net cash provided by financing activities for the three months ended March 31, 2000 was related to borrowings under the credit facility and proceeds from our initial public offering.
Net cash used in investing activities was $4.3 million and $22.3 million for the three months ended March 31, 2001 and 2000, respectively. Net cash used in investing activities for the three months ended March 31, 2001 related to capital expenditures offset by the decrease in restricted cash for the quarterly interest payment on the subordinated debt and the maturity of short term investments. Net cash used in investing activities for the three months ended March 31, 2000 related to capital expenditures and the acquisition of Edgenet, Inc.
Capital Requirements. Capital expenditures were $19.6 million and $20.4 million for the three months ended March 31, 2001 and March 31, 2000, respectively. We expect that our capital expenditures will continue at stable rates in connection with the purchase of infrastructure equipment necessary for the development and expansion of our network and the development of new markets.
During May 2001, we filed a shelf registration statement with the Securities and Exchange Commission to offer up to $300 million in equity or debt, or a variety of related securities. This registration statement, when declared effective, will allow the company to be in a position to take advantage of future financing opportunities as and when they may arise. The shelf registration statement has not yet been declared effective and may be subject to review by the Securities and Exchange Commission.
To expand and further develop our business, we will need a significant amount of cash. We believe, based on our current business plan, that our cash resources and available bank credit facilities will be sufficient to finance our business to the point at which our operating cash flow will be sufficient to fund our ongoing operating costs, capital expenditures and debt service requirements. However, our business plan is based on certain revenue and expense assumptions, many of which are difficult to predict accurately or control. In addition, there are conditions to our ability to continue to borrow under our available bank credit facilities, including the continued satisfaction of covenants and the absence of any material adverse change in our business.
The actual amount and timing of our future capital requirements may differ materially from our estimates as a result of the demand for our services and regulatory, technological and competitive developments, including additional market developments and new opportunities in the industry and other factors. We may require additional financing, or require financing sooner than anticipated, if our development plans or projections change or prove to be inaccurate. We may also require additional financing in order to take advantage of unanticipated opportunities, to effect acquisitions of businesses, to develop new services or to otherwise respond to changing business conditions or unanticipated competitive pressures. Sources of additional financing may include commercial bank borrowings, vendor financing or the private or public sale of equity or debt securities. |
