Metromedia Fiber Network Inc.'s (MFN) (Quote) future is looking brighter than it was just a few months ago, when it was facing the prospect of bankruptcy if it didn't sign a flurry of deals that would have practically ensured its continued operations.
Late this morning, the fiber-optic network provider said it was reaffirming its previously issued fourth quarter revenue guidance of $100 million to $103 million, bringing its year 2001 revenues to $360 million to $363 million.
Last October, MFN revised downward its fourth-quarter revenue expectations to between $100 million and $103 million. Its previous estimate had been in the $127 million to $137 million range.
Also, MFN reaffirmed its previously issued fourth quarter normalized EBITDA guidance of a loss of $3 million to $9 million, bringing its year 2001 normalized EBITDA to a loss of $133 million to $139 million. Normalized EBITDA guidance also excludes any one-time costs associated with the closing its October 2001 financing.
MFN also reaffirmed its previously issued capital expenditure guidance of approximately $1.3 billion for the full year of 2001.
Also last October, MFN had said it expected to become normalized EBITDA (earnings before interest, taxes, depreciation and amortization) positive in early 2002 -- one year ahead of its previous guidance. The company was more specific today in saying that it now expects to become normalized EBITDA positive for its first fiscal quarter ending March 31. For the year 2002, MFN said it expects normalized EBITDA to be in the range of $75 million to $90 million.
The acceleration of normalized EBITDA positive results comes from expense reductions and cost control.
For 2002, MFN said it expected to see revenues in the $510 million to $535 million range.
Also for 2002, MFN said its capital expenditures would be approximately $60 million to $70 million, excluding customer-funded capital expenditures. Near-term capital expenditures are being driven by customer demand, while a decrease in projected capital expenditures for 2002 primarily reflects MFN's network build-out being ahead of schedule and the completion of substantially all of its data center build-out.
MFN still expects to have approximately 3.6 million fiber miles by the end of 2004, officials added.
Investors on Wall Street apparently liked what they heard today. At 12:00 Noon EST, MFN shares were up $0.10 or 24.4 percent to $0.51 apiece in very heavy trading on the Nasdaq exchange.
MFN last October completed $611 million in complicated financing deals that most likely kept it out of bankruptcy court. The package included a $150 million note purchase facility led by Citicorp, USA, $230 million in convertible debt financing and $231 million in vendor financing.
At the time, MFN also said it completed agreements with its other vendors to modify payments it owes them.
MFN said in early September that it would face bankruptcy if it did not sign the dotted line on a number of financing deals, many of which depended on other pacts closing in a house-of-cards scenario.
Related Story:
Metromedia Fiber Avoids Chapter 11
Images
