Global Crossing Announces Fourth Quarter and Full Year 2007 Results
Wednesday March 12, 7:00 am ET
-- Consolidated revenue grew 4 percent sequentially to $616 million in the fourth quarter.
-- Company generated $323 million or 52 percent adjusted gross margin in the fourth quarter.
-- Consolidated revenue grew to $2.26 billion in 2007.
-- Company generated $174 million in adjusted cash EBITDA for 2007.
FLORHAM PARK, N.J., March 12 /PRNewswire-FirstCall/ -- Global Crossing (Nasdaq: GLBC - News), a leading global IP solutions provider, today reported its consolidated financial and operational results for the fourth quarter and full year 2007. The following table highlights financial results:
...
Business Highlights
Global Crossing reported consolidated revenue of $2.26 billion, and adjusted gross margin of $1.12 billion in 2007. The company generated $174 million of adjusted cash EBITDA for the year. In the fourth quarter, all three reporting segments generated positive adjusted cash EBITDA, and the company generated cash. Other highlights in the fourth quarter and 2007 included:
-- The company's "invest and grow" category showed strong revenue growth
of 6 percent sequentially in the fourth quarter.
-- "Invest and grow" adjusted gross margin grew to 61 percent in the
fourth quarter, an increase from 56 percent in the fourth quarter of
last year.
-- Adjusted cash EBITDA of $100 million was generated in the fourth
quarter which included a net $30 million non-cash benefit relating to
changes in the restructuring reserve.
Strong order levels during 2007 are continuing into 2008, matching a record monthly high of $4.8 million in January.
...
Cash and Liquidity
As of December 31, 2007, Global Crossing had $397 million of unrestricted and $53 million of restricted cash and cash equivalents.
Cash flow from operating activities for the fourth quarter was $94 million, including $50 million in interest on indebtedness. Global Crossing received $91 million in proceeds from the sale of indefeasible rights of use (IRUs) and prepaid services in the fourth quarter. Excluding previous financing and M&A activities, the company generated $33 million of cash during the quarter. Cash use for the quarter included $77 million used for capital expenditures and for principal payments on capital leases and long term debt.
Cash flow used in operating activities was $15 million in 2007, including $116 million of interest on indebtedness. Global Crossing received $174 million in proceeds from the sale of IRUs and prepaid services in 2007. Excluding financing and M&A activities, the company used $191 million of cash for the year. Cash use for 2007 included $269 million used for capital expenditures and for principal payments on capital leases and long term debt.
...
2008 Guidance
"As we enter the next phase of our development, we continue to believe we are well positioned to take advantage of market opportunities. We're planning to grow the business at a healthy rate while expanding adjusted cash EBITDA," said John Legere. "We'll maintain a balanced approach as we focus on growing adjusted cash EBITDA and continue to invest in our future."
Metric 2008 Guidance
($ in millions)
Revenue $2,570 - $2,675
Adjusted Cash EBITDA $320 - $380
Cash Use ($85) - ($35)
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