Oct, 2001 : Primus Raises Positive EBITDA Guidance For Q3
📅 - Primus Telecommunications Group, Incorporated (primustel.com), a global facilities-based Total Service Provider, yesterday provided updated financial guidance for the third quarter and full year of 2001.
"We are pleased to announce that the company expects to report positiveEBITDA (earnings before interest, taxes, depreciation and amortization) forthe third quarter of 2001 approximately 20% to 30% higher than our previousguidance of $5 million," said K. Paul Singh, chairman and CEO of Primus."The expected EBITDA of approximately $6 to $6.5 million is a result of acombination of higher retail revenues and, most significantly, successfulexecution of initiatives to increase operating efficiencies and reducecosts. While we expect net revenues for the third quarter of 2001 to be inthe range of the prior quarter, the revenue mix is more favorable as ourretail business grew while our lower margin US-originated wholesale businessdeclined."
"We are greatly encouraged by this performance, particularly coming off anessentially break-even EBITDA performance in the second quarter and anEBITDA loss in the first quarter. With the level of EBITDA anticipated inthe third quarter, and given continuation of the favorable revenue, marginand cost trends we are currently experiencing, we believe our goal of $10million EBITDA for the fourth quarter of 2001 is attainable," he continued.
The company will report financial results for the quarter ended Sept. 30,2001 after market close on Nov. 6, 2001. Management will conduct aconference call to discuss third quarter results on November 6, 2001 at 5:00PM Eastern time.
"We are pleased to announce that the company expects to report positiveEBITDA (earnings before interest, taxes, depreciation and amortization) forthe third quarter of 2001 approximately 20% to 30% higher than our previousguidance of $5 million," said K. Paul Singh, chairman and CEO of Primus."The expected EBITDA of approximately $6 to $6.5 million is a result of acombination of higher retail revenues and, most significantly, successfulexecution of initiatives to increase operating efficiencies and reducecosts. While we expect net revenues for the third quarter of 2001 to be inthe range of the prior quarter, the revenue mix is more favorable as ourretail business grew while our lower margin US-originated wholesale businessdeclined."
"We are greatly encouraged by this performance, particularly coming off anessentially break-even EBITDA performance in the second quarter and anEBITDA loss in the first quarter. With the level of EBITDA anticipated inthe third quarter, and given continuation of the favorable revenue, marginand cost trends we are currently experiencing, we believe our goal of $10million EBITDA for the fourth quarter of 2001 is attainable," he continued.
The company will report financial results for the quarter ended Sept. 30,2001 after market close on Nov. 6, 2001. Management will conduct aconference call to discuss third quarter results on November 6, 2001 at 5:00PM Eastern time.
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