November 14, 2000
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Global Crossing CEO Pleased With 3Q; Reaffirms Guidance
By JANET WHITMAN
Of DOW JONES NEWSWIRES
(This story was originally published late Monday.)
NEW YORK -- Global Crossing Ltd. (GX) Chief Executive Thomas Casey said late Monday that he is "very pleased" with the telecom company's third-quarter results, which he noted exceeded Wall Street's expectations.
"I think that our third-quarter performance shows that our revenue mix and customer base is sufficiently diverse (so) that we are not affected materially by the trends that are affecting some other companies in the sector," Casey told Dow Jones Newswires in an interview following the release of the company's quarterly results. "We hope that investors will realize our relative strength compared to others that are struggling in the sector."
Bermuda-based Global Crossing reported a third-quarter recurring net loss of $572 million, or 65 cents a share, compared to a First Call/Thomson Financial analyst estimate for a loss of 79 cents a share.
"We came in 14 cents a share better than analysts' estimated," said Casey.
He highlighted Global Crossing's strong performance in data products, which as of the third quarter, comprised 59% of the cash revenue in the company's telecom services segment, up from 46% a year ago.
At the same time, consumer long distance accounted for only 4% of Global Crossing's revenue, which will continue to decline as the remainder of its revenue base continues to grow, he said.
Casey said he is "still very comfortable" with guidance provided earlier this year.
He reaffirmed that Global Crossing's cash revenue - revenue plus incremental cash-deferred revenue - from continuing operations is expected to be about $5.2 billion for 2000. Recurring adjusted EBITDA, or earnings before interest, taxes, depreciation and amortization, for the year is expected to be about $1.34 billion.
While noting that the previous guidance was for the entire year, Casey said: "I think we will meet or beat the fourth quarter component."
Casey also reiterated that Global Crossing's adjusted EBITDA is targeted to exceed 35% per year through 2004, while its revenue growth is projected to grow by 30% a year over that period.
The company, which is near completion of its global fiber-optic network - will likely see capital spending of $4 billion for next year, including Asia Global Crossing, Casey said.
As reported earlier this month, next year's capital expenditures compare to an estimated $6 billion for this year.
Casey said Global Crossing's business plan is fully funded.
The company is "not in any conversations" currently either to acquire another company or to be acquired, he said.
When asked whether Global Crossing could be a target for an acquisition, Casey said: "We think the stock price is vastly undervauled ... We are not in any conversations with anybody."
Nor does Global Crossing expect to acquire any companies, although it would consider buying the assets of some distressed companies, particularly in the local telecom area, he said.
-Janet Whitman, Dow Jones Newswires; 201-938-5248; janet.whitman@dowjones.com |
