Leap Wireless International (LWIN) Message Board

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Technology Stocks : Leap Wireless International (LWIN)

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To: pcstel who wrote (1728)	3/13/2002 8:32:29 AM
From: Robert J. Irvin	Read Replies (1) of 2737

Thanks for your analysis. Is there any color on the capex? Say, if your estimated $65 million is spent or committed by October 2002, what comes due in 2003? What I am really looking for is a reasonable "worst case" view of Leap's sources of cash and uses of cash in 2002 and 2003, making the positive assumption that Leap executes its business plan of growing Cricket subscribers cost effectively. To start, let's discard the notion of "new money", since we're looking at the worst case. For the "worst case", let's also assume that the Auction 35 deposit is not available to be spent. I'm pretty sure there are some "uses of cash" required for vendor financing interest and principal payments starting in the fourth quarter. I'm hoping that the extra capex funds are a source of this cash, one way or another. You say that if Leap executes its plan, it will be EBITDA positive going forward in 2003. What I'm wondering is whether cash flow will be sufficient for Leap to pay its debts as they come due, before Leap reaches cash flow positive. Until Leap's ability to pay its debts as they become due is addressed, it seems to me that "reorg" or at least "recap" pricing of the stock isn't so crazy.

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