SAN DIEGO-Leap Wireless International Inc., which recently emerged from Chapter 11 bankruptcy protection, reported fiscal-year 2004 guidance, including the addition of 50,000 and 100,000 net subscribers and customer churn of between 3.8 percent and 4.2 percent. Leap has already announced nearly 75,000 net customer additions for the first half of this year and customer churn of 3.1 percent during the first quarter and 3.7 percent during the second quarter.
The carrier also said it expects total consolidated revenue of between $820 million and $840 million, adjusted consolidated earnings before interest, taxes, depreciation and amortization of between $215 million and $230 million and cash capital expenditures of approximately $85 million for the year. Leap has reported $412.5 million in consolidated revenues, $113.9 million in consolidated EBITDA and $30.5 million in cash capital expenditures for the first half of the year.
“The guidance we are announcing today highlights the fundamental strength of our business model during what is a year of transformation for our company,” said Doug Hutcheson, executive vice president and chief financial officer of Leap. “This year represents a transition period as we take the necessary steps to evolve our services to meet the needs of the customer segments we serve while at the same time continuing to generate significant positive cash flow.”
Despite the positive tones, Leap’s stock was down more than 16 percent early Wednesday to $21.31 per share.
