Leap Wireless International (LWIN) Message Board

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Technology Stocks : Leap Wireless International (LWIN)

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next

To: arun gera who wrote (1870)	4/5/2002 1:47:08 PM
From: pcstel	Read Replies (1) of 2737

Were the previous covenants also for the Cricket part of the business? Does it imply that Leap is meeting the loan covenants requirements by merely moving G&A expenses and not really trying hard to lower G&A and other costs? It is my understanding that the previous EBITDA to Cash Interest Expense covenants were for LWIN as a whole. I believe the new EBITDA to Cash Interest Expenses covenants that have been extended by 90 days are also for LWIN as a whole. But, with the addition of the Cricket only EBITDA metrics. Overall G/A has been one of my biggest complaints. I think Q4 had about 10-12 million of one time launch expenses included! In operational mode, I expect to see overall G/A around 40 million. The 9 million a quarter in non-Cricket G/A is worth noteing. Again, I attribute it to the upcoming launch of data services. Several people have disagreed with me. But, I think we will see a seperate operational segment for data! I believe data will share store fronts, infrastructure (for both the fixed, and air interface) and will become accountable for it's share of G/A expenses by Y/E. And it appears that management wants to measure Cricket performance as a stand alone segment. So I believe we will see another operating segment when data launches. Looking at LWIN's CapEx for this year. The large amount of CapEx slated for Nortel tells us the story here. It is my estimation that Nortel has only built (voice wise) Toledo, Buffalo, and Syracuse. The Lakeland protection build was performed by Lucent. So in my opinion, Nortel will be doing all of the Data deployments in selected markets. Nola seems confused about the CapEx for 02. The answer is obvious by the announcement of use of expected CapEx via NT this year (~240 MILLION by Y/E)! So I believe a portion of the Corporate G/A not assigned to Cricket is in part due to the upcoming launch of Data! When the data segment begins to defray Operation Expenses from Cricket. Then Crickets EBITDA should really shine. IMO. PCSTEL

Report TOU Violation

Share This Post

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next