RCN Finance Chief: Likely To Raise More Funds In Future
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By Janet Whitman
Of DOW JONES NEWSWIRES
NEW YORK -(Dow Jones)- RCN Corp. (RCNC) Chief Financial Officer Tim
Stoklosa said Thursday that the company has no "immediate" plans to seek
additional capital beyond the $5 billion already raised.
He added, however, it's likely that RCN, which offers phone, Internet
and cable service in competition with cable operators and the incumbent
Bells, will seek more funds in the future.
Stoklosa was amplifying remarks made late Wednesday by RCN Chairman &
Chief Executive David McCourt, who said the company has no plans to
raise additional capital.
Stoklosa told Dow Jones Newswires that RCN has "no need" to seek
further financing because its business plan is fully funded until it
becomes cash flow positive, with an additional $1 billion to spare.
"In the unlikely scenario that we don't raise additional money, we
expect to hit free cash flow in 2004," he said.
RCN expects to hit EBITDA positive in 2002, he said.
"We have a huge opportunity here at RCN and we would like to continue
building our network," Stoklosa. "We have the luxury of being prefunded.
We don't have the problem that a lot of start-ups or dot-coms have. We
don't have to raise additional money to finish what we started."
RCN strategy is to always be 18-24 months prefunded, which provides
the company "enough time and room that if we need to change our plans
and we don't have to be out in a market like this looking for
financing," he said. "A lot of our peers aren't in that position. We
want to take the financial risk out because there's enough execution
risk in our business plan."
(This story was originally published by Dow Jones Newswires)
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