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Technology Stocks : Leap Wireless International (LWIN) -- Ignore unavailable to you. Want to Upgrade?

To: Dave who wrote (2314)	6/30/2002 7:17:28 PM
From: pcstel	Read Replies (1) \| Respond to of 2737

When is LWIN forecasting to achieve EBITDA positive? At the Cricket Operating level. Loan Covenants stipulate next quarter to be EBITDA break-even. Q4 for consolidated EBITDA positive. Loan covenants for this quarter require at least a negative EBITDA of (27,000) at the Cricket Level. I think they should post a consolidated (27,000) EBITDA. However, even with the fraud.. Management gave guidence for the following full year metrics. "-- Total customers under Leap's 40 Market Plan are expected to grow to at least 1.5 million at the end of the second quarter and to at least two million by the end of the year. -- Consolidated churn across all markets is expected to be approximately 3.8 percent. -- Cumulative gross revenue, including service and equipment revenue, is expected to be at least $730 million. -- As a result of trends seen in the first quarter, overall CPGA is now expected to be between $220 and $225. -- Consolidated cash cost per user, including Leap corporate expenses, is expected to be less than $20 for the fourth quarter. -- Network operations cost per minute of use are expected to be less than $0.01 per minute. -- As a result of trends seen in the first quarter, consolidated EBITDA loss for Leap's entire business during fiscal year 2002 is now expected to be between $75 million to $85 million. -- Consolidated EBITDA is expected to be positive for the fourth quarter of fiscal year 2002. -- Cumulative capital expenditures for Leap's 40 Market Plan are expected to be approximately $1.5 billion, reflecting both the completion of network build-outs and the continued investment Leap expects to make to support customer growth within its 40 Market Plan. In addition, the Company expects unlevered free cash flow (UFCF), defined as EBITDA minus capital expenditures, income taxes and changes in working capital, to become positive in the first half of fiscal year 2003." In addition, even in LWIN's recent press release. LWIN stated the following... "Also, in response to investor questions regarding the Company's ability to meet its minimum EBITDA covenants, Leap stated that given its progress in mitigating fraud and its expectations that the business will continue to perform consistent with plan, the Company anticipates it will meet all of its minimum EBITDA covenants added to its vendor facilities earlier this year." PCSTEL