Electric Lightwave Withdraws 2002 Guidance.Business Editors STAMFORD, Conn.--(BUSINESS WIRE)--April 22, 2002 Electric Lightwave, Inc. (NASDAQ NASDAQ in full National Association of Securities Dealers Automated Quotations U.S. market for over-the-counter securities. Established in 1971 by the National Association of Securities Dealers (NASD), NASDAQ is an automated quotation system that reports on : ELIX) announced that it is withdrawing its previous guidance for 2002, based upon preliminary results of operations for the first quarter of 2002. Preliminary reports show a range of revenue for the quarter of $47 million to $49 million; EBITDA (Earnings Before Interest, Taxes, Depreciation and Amortization) A metric used to show a company's profitability, but not its cash flow. EBITDA became popular in the 1980s to show the potential profitability of leveraged buyouts, but has become of $2 million to $3 million; net loss of $43 million to $45 million; and capital expenditures of $4 to $5 million. A one-time item reducing cost of goods sold Cost of goods sold The total cost of buying raw materials, and paying for all the factors that go into producing finished goods. cost of goods sold increased EBITDA by $2.1 million. These amounts are preliminary only and are subject to normal quarterly review procedures. ELI Eli (ē`lī), in the Bible, high priest and judge of Israel, teacher of the boy Samuel. 1. (language) ELI - An early system on the IBM 705 and IBM 650. [Listed in CACM 2(5):16 (May 1959)]. 2. intends to issue revised guidance not later than the release of the results of operations for the first quarter. Previously ELI provided guidance for 2002 of revenues of $250 million, EBITDA of $22 million, and capital expenditures of $75 million. EBITDA is operating income Operating Income The profit realized from a business' own operations. Notes: This would not include income from things such as investments in other firms. Also referred to as operating profit or recurring profit. plus depreciation and amortization. EBITDA is not a measure of financial performance nor is it an alternative to cash flows as a means of liquidity and may not be comparable to similarly titled measures of other companies. ELI stated that it anticipates closing on April 30, 2002, on the purchase option of $110 million under its synthetic lease Synthetic Lease An operating lease that is structured in a way so that it is not recorded as a liability on the balance sheet. Instead, it is considered to be an expense on the income statement. , with funds borrowed from Citizens Communications Citizens Communications is the parent company of Frontier Telephone, providing telephone and internet access in 24 states. The company headquarters are located at 3 High Ridge Park in Stamford, Connecticut. . The terms of such funding and the impact on ELI's capital structure are currently being negotiated. It is currently anticipated that revised guidance will reflect lower revenue and EBITDA resulting from declining demand for telecommunications services, primarily from carriers. During this period of reduced revenue at ELI, an ongoing review of its operations is expected to result in a lower cost structure, a significant reduction in the requirement for capital expenditures and a substantial reduction in incremental funding required from Citizens Communications to support ELI's operations. These changes are not expected to impact ELI's existing customer base, the quality of its network and the ability to provide the highest level of customer service. About Electric Lightwave, Inc. Electric Lightwave, Inc. is a facilities-based competitive local exchange carrier providing Internet, data, voice and dedicated access services to communications-intensive businesses in the western United States Noun 1. western United States - the region of the United States lying to the west of the Mississippi River West Santa Fe Trail - a trail that extends from Missouri to New Mexico; an important route for settlers moving west in the 19th century . The company is 85 percent owned by Citizens Communications (NYSE NYSE See: New York Stock Exchange : CZN, CZB). More information about Electric Lightwave, Inc. may be found at www.eli.net. This press release contains forward-looking statements that are subject to risks and uncertainties that could cause actual results to differ materially from those expressed or implied in the statements. All forward-looking statements are only predictions or statements of current plans, which are constantly under review by Electric Lightwave (the company). All forward-looking statements may differ from actual future results due to, but not limited to, changes in the local and overall economy, the nature and pace of technological changes, the number and effectiveness of competitors in the company's markets, success in overall strategy, changes in legal and regulatory policy, relations with Incumbent Local Exchange Carriers (ILECs) and their ability to provide delivery of services including interoffice in·ter·of·fice adj. Transmitted or taking place between offices, especially those of a single organization: an interoffice memo; interoffice conferences. trunking, implementation of back office service delivery systems, the company's ability to identify future markets and successfully expand existing ones and the mix of products and services offered in the company's target markets. Readers should consider these important factors in evaluating any statement contained herein and/or made by the company or on its behalf. The company has no obligation to update or revise forward-looking statements to reflect the occurrence of future events or circumstances. |
|
||||||||||||||||
Printer friendly
Cite/link
Email
Feedback
Reader Opinion