When is Leap supposed to become cash flow positive?
Harvey said 1H03 in October. In an article posted the other day.. Harvey was quoted as saying Profitable in 1H03.
Here is the numbers from my Spreadsheet. Harvey said EBITDA losses would peak at 120 million last Quarter. Note the forward looking quarters are MINIMUM subs required to make VF covenants on a quarterly basis.
Here is how the numbers look to me.
>>>>>>>>>>>>>>Q401>>>>>>>Q102>>>>>>>>Q202
Net Subscribers..1,119,000......1,119,000.....1,311,900
Net Additions...........395,000............0................200,000
$ in 1,000
Equip. Revs..........15,010............0......................13,117
Service Revs.........89,360............120,858.........127,622
Total>>>>>>>......104,370...........120,858..........140.739
Covenant...............100,000...........120,000..........140,000
Cost of Service......51,474............53,000............60,347.
Cost of Equip.........70,000............20,000............20,000
Selling+Marketin...52,000.............40,000...........35.000
General / Admin....40,000..............38,000...........35,000
EBITDA loss........(109,000)...........(31,000).........(9,607)
So by the end of June.IF we add only 200,000 net subs we should still meet our VF finance covenants. Provide an average of $291,000 per market per month in Selling and Marketing Expneses and 11.6 Million a month in General/Administrative Expenses.
We should be EBITDA positive in Q3. Cash Flow positive in Q4. Harvey says EBITDA positive by 2H01 and that looks easily possible. Even only adding another 300,000 subs.
It looks like Havrey is starting to sharpen his pencil on the G/A Expenses as they laid off 15 people from the Backwire Division.
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