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Nice link. LVLT vs S.... Sprint is trading at $1.79, down from around $9. LVLT is $.64 down from around $3.25. Now their share prices have dropped back in line with each other, much in the way their rankings "trade" together in the charts in that article. Ha:)
What was with the last minute of trading today? I know there are some bearish signs in the hourly chart but... .70 to .60 in under a minute? And .60 to .64 in the next 3 seconds, then it's 4:00. All the trading at .60 today happened in 3 seconds! And only 1,000 shares brought it up from .60 to .64. The next trade was for 13,521,343 shares at 0.64 .
Heck of a move on 18.5M shares in the last 2 minutes. And not just a big jump, they made a lot of trades at every penny on the way down
And then wow, after hours at 16:58... SIX trades of 2,824,600 and one at 2,824,564... total of 19,772,164 shares, all at .641. The T&SQ makes it look like buys.
Today's volume was 37M shares.
10-day average volume is 11M shares.
Sweet little bounce off .78! Strong resistance around .85 and volume has been too low to break it.
"Our ambulatory surgery center (ASC) prostate brachytherapy programs have been both clinically and financially successful for Oncology Med mainly due to our speed of implementation after contract execution and clinically excellent services provided to the surgery centers and physicians,"
Let's see some proof of that, CEO Dr. Walker.
Yep... MGM up 60% this week. F up maybe 10%.
aharfo - I missed the .60 bottom too - was not at my desk that day! Oh well.
re; the chart stats thing we discussed here a couple weeks ago - I've been to 3 different bookstores where I've seen the book with the candlestick pattern data in it and I could not find it. I guess this "crisis" has them selling out of TA books? I just keep kicking myself for not buying it (or jotting down the title) when I saw it. Will keep looking...
Meantime I did find a little info on the topic:
"Getting Started In Chart Patterns" by Thomas Bulkowski
has a section in the back called "Chart Pattern Performance And Rank Tables". Not as comprehensive or easy to read as I would like, but there is some info there.
He also has a blog which I have not checked out yet at :
http://www.thepatternsite.com/Blog.html
There is lots of info out there if you google him, maybe someone has published some of his, or some other charting stats.
GLTU
I am not sure there is a whole lot of proven success at the moment. At this point, business as usual could be considered a success but I think we need to see a longer track record of successes than just the last few months. I have 'long' thought that BAU was all that was needed to get this moving out of the $1 range. imo that may be what is behind the recent doubling of pps... people are beginning to see that business continues to go on here and the news is beginning to turn towards confidence and positivity.
I don't think they are done yet with making changes under the conservatorship and from the talk we are hearing, they want to make more radical changes than have been made so far.
The only justification for going as radical as a re-org or privatization (or any of the other wacky restructuring schemes on the table), in my mind, is to give evidence that things will not continue as they had in the past, and to give confidence that the 'new' FRE and FNM will be capable of doing their part in turning this crisis around. To give security to the people that the companies will be run efficiently, correctly and be tightly regulated and closely monitored.
Overall I think the changes are less about doing what is good for the companies and more about doing what is good for the economic conditions that, according to popular opinion, these companies have created. Taking responsibility for the climate and making a responsible change. I think nationalization is an option mostly due to the concern with popular opinion. They need to stabilize the people's confidence in this sector if they are to turn things back up. The companies need to remain healthy to provide the liquidity needed to do this.
It would not be a bad thing for these guys to start showing more responsibility in how they conduct business. It would certainly produce fewer future defaults and so on, so it would effectively (and ultimately) be good for the companies anyway.
The Quilt Extends Authorized Vendor Contract With Level 3
Level 3 Now the Largest Provider of Network IP Services to The Quilt Research and Education Consortium
Oct 30, 2008 8:00:00 AM
Email Story Discuss on ZenoBank
View Additional Profiles
BROOMFIELD, Colo., Oct. 30 /PRNewswire-FirstCall/ -- Level 3 Communications' Business Markets Group today announced it has renewed its multi-year contract with The Quilt, a coalition of regional network organizations representing many of the country's most highly respected institutions in the field of research and education. Building on this long- standing relationship gives Quilt members access to one of the largest and most connected Tier 1 Internet backbones in North America and Europe.
"Level 3 has been a long time business partner that understands our networking needs and those of our members," said Mark Johnson chair of The Quilt. "They partner with us to provide solutions for delivering high quality, cost-effective service."
Most Quilt members are non-profit regional network aggregators that provide advanced network services in support of research and education. Quilt members leverage their collective strength to purchase services from Quilt-approved vendors such as Level 3, at more favorable pricing than they could negotiate on their own.
"The research and education community is an important focus for Level 3, and we are committed to providing customers in this segment with robust network solutions," said Jack Waters, chief technology officer and president of Level 3's Global Network Services. "Level 3's ability to scale as customers grow, coupled with its extensive network reach, enables The Quilt to provide reliable high-speed Internet access with superior performance to its many members."
For more information about The Quilt, please visit: http://www.thequilt.net
About Level 3 Communications
Level 3 Communications, Inc. (Nasdaq: LVLT) is a leading international provider of fiber-based communications services. Enterprise, content, wholesale and government customers rely on Level 3 to deliver communications services with an industry-leading combination of scalability and quality, over an end-to-end fiber network. Level 3 offers a portfolio of metro and long haul services over an end-to-end fiber network, including transport, data, internet, content delivery and voice. For more information, visit http://www.Level3.com.
Level 3 Communications, Level 3, the red 3D brackets and the Level 3 Communications logo are registered service marks of Level 3 Communications, LLC and/or its affiliates in the United States and/or other countries. Level 3 services are provided by wholly owned subsidiaries of Level 3 Communications, Inc. Any other service, product or company names recited herein are trademarks or service marks of their respective owners.
Forward-Looking Statement
Some of the statements made in this press release are forward looking in nature. These statements are based on management's current expectations or beliefs. These forward looking statements are not a guarantee of performance and are subject to a number of uncertainties and other factors, many of which are outside Level 3's control, which could cause actual events to differ materially from those expressed or implied by the statements. The most important factors that could prevent Level 3 from achieving its stated goals include, but are not limited to the company's ability to: successfully integrate acquisitions; increase the volume of traffic on the network; defend intellectual property and proprietary rights; develop new products and services that meet customer demands and generate acceptable margins; successfully complete commercial testing of new technology and information systems to support new products and services; attract and retain qualified management and other personnel; and meet all of the terms and conditions of debt obligations. Additional information concerning these and other important factors can be found within Level 3's filings with the Securities and Exchange Commission. Statements in this press release should be evaluated in light of these important factors. Level 3 is under no obligation to, and expressly disclaims any such obligation to, update or alter its forward-looking statements, whether as a result of new information, future events, or otherwise.
SOURCE Level 3 Communications, Inc.
----------------------------------------------
Media
Jennifer Daumler
+1-720-888-3356
or Investors
Valerie Finberg
+1-720-888-2501
or Mark Stoutenberg
+1-720-888-2518
all of Level 3 Communications
Inc.
I don'y know... :) My guess is that you'd have to think the offer would be substantially higher than $1.10.
I don't think it is about the business model making the company successful, keeping the bailout in mind, they need to make a change to rectify the current situation and prevent it from happening in the future. Nobody will be convinced that has happened if they allow the companies to continue as they are.
I think most likely they will opt to reconfigure. Privatization comes in a close second... The Govt. should be up their butts, but they shouldn't be the Nationalized... Splitting them up would be way too messy ... I guess you have to consider all options.
The chart is sure looking ripe. And the news is turning positive. Sentiment will move FRE as the media is reshaping public opinion. I hope everybody loaded up this week. GLTA
Level 3 Expands CDN Capacity in Asia
Expanded CDN Footprint Enables Premium End-User Experience Across the Region
Oct 28, 2008 11:00:00 AM
Email Story Discuss on ZenoBank
View Additional Profiles
BROOMFIELD, Colo., Oct. 28 /PRNewswire-FirstCall/ -- Level 3 Communications, Inc. (Nasdaq: LVLT) today announced that the company has expanded its Content Delivery Network (CDN) capacity in Asia. This expansion significantly increases Level 3's delivery capabilities in the region and adds new capabilities to deliver content in China.
"Level 3 offers the CDN features and functionality we need to provide audiences in Asia with the same high-performing, end-user experience that is standard for Yahoo! in more established markets," said Raj Patel, vice president of network systems and storage engineering for Yahoo!. "Content delivery in Asia is critical for our global business growth and we are pleased to continue working with Level 3 to meet this goal."
Level 3's expansion increases content delivery capacity in Asia by a factor of 10 and extends the CDN network into China. With this expansion, the Level 3 CDN footprint in the region includes: Australia, China, Hong Kong, Japan, Singapore, South Korea and Taiwan.
Increased access to these markets provides new and existing customers in North America and Europe with a global content delivery solution. The ability to deliver content from within Asia optimizes content delivery for efficiency and performance, enabling content owners to provide a better end-user experience to their customers.
"As global demand for online video and other content continues to accelerate, the need to store and deliver content locally becomes increasingly important," said Grant van Rooyen, president of Level 3's Content Markets Group. "The expansion of our CDN service capabilities in Asia reinforces Level 3's commitment to continue investing in our global CDN business and further establishes the company as the right content distribution partner for content owners, distributors and rights holders to meet the rapidly growing demands of their customer base."
About Level 3 Communications
Level 3 Communications, Inc. (NASDAQ: LVLT) is a leading international provider of fiber-based communications services. Enterprise, content, wholesale and government customers rely on Level 3 to deliver services with an industry-leading combination of scalability and value over an end-to-end fiber network. Level 3 offers a portfolio of metro and long-haul services, including transport, data, Internet, content delivery and voice. For more information, visit http://www.Level3.com.
Level 3 Communications, Level 3, the red 3D brackets and the Level 3 Communications logo are registered service marks of Level 3 Communications, LLC and/or its affiliates in the United States and/or other countries. Level 3 services are provided by wholly owned subsidiaries of Level 3 Communications, Inc. Any other service, product or company names recited herein are trademarks or service marks of their respective owners.
Forward-Looking Statement
Some of the statements made in this press release are forward looking in nature. These statements are based on management's current expectations or beliefs. These forward looking statements are not a guarantee of performance and are subject to a number of uncertainties and other factors, many of which are outside Level 3's control, which could cause actual events to differ materially from those expressed or implied by the statements. The most important factors that could prevent Level 3 from achieving its stated goals include, but are not limited to the company's ability to: successfully integrate acquisitions; increase the volume of traffic on the network; defend intellectual property and proprietary rights; develop new products and services that meet customer demands and generate acceptable margins; successfully complete commercial testing of new technology and information systems to support new products and services; attract and retain qualified management and other personnel; and meet all of the terms and conditions of debt obligations. Additional information concerning these and other important factors can be found within Level 3's filings with the Securities and Exchange Commission. Statements in this press release should be evaluated in light of these important factors. Level 3 is under no obligation to, and expressly disclaims any such obligation to, update or alter its forward-looking statements, whether as a result of new information, future events, or otherwise.
SOURCE Level 3 Communications, Inc.
----------------------------------------------
media
Kimberly Tulp
+1-720-888-3675
or Jennifer Daumler
+1-720-888-3356
or investors
Valerie Finberg
+1-720-888-2501
or Mark Stoutenberg
+1-720-888-2518
all of Level 3 Communications
Inc.
15 of the last 19 days were down days for the Dow. It is hard not to buy something that isn't dropping.
I have a buy here at $12. But will keep my on it and decide at the last minute whether or not to let it hit. Word on the street is that a President Obama will not be good for coal. Hmmm....
Arch Coal (ACI Quote - Cramer on ACI - Stock Picks) target cut at Goldman to $22.50 from $30. Q3 results came in below expectations due to weak pricing environment. Long-term, expect declining earnings trends due to economic slowdown. Maintained Neutral rating.
source
http://www.thestreet.com/_yahoo/markets/analystsactions/10444547.html?cm_ven=YAHOO&cm_cat=FREE&cm_ite=NA
I'm guessing his plan is to rip off as many people as possible before the SEC decides to shut down everything even one of the Brolas is involved in.
Not after yesterday's reaction to 3X better than 07 earnings, doubled margins and a record quarter. They expect things to slow down a little for a while, say maybe only 70-75% growth instead of 79%. Hence the drop in PPS since the announcement. Quite the retarded market eh?
The NASDAQ is tracking for its 2nd Worst Month Ever: The NASDAQ Composite is down almost 540 points and -25.81% for the month (Data back to 1971)
The biggest monthly % drop for the NASDAQ was October, 1987 when the NASDAQ dropped -27.23%
The third biggest monthly % drop for the NASDAQ was November, 2000 when the NASDAQ dropped -22.90%
All NASDAQ 100 components but 1, UAL (UAUA) up 35.95% MTD are negative for the month of October
-Level 3 (LVLT) is down the most at -72.22% MTD
-Millicom International (MICC) is down -59.63% MTD
-SanDisk (SNDK) is down -59.44% MTD
-NII Holdings (NIHD) is down -59.36% MTD
-Cadence Design (CDNS) is down -57.10% MTD
The NASDAQ is now down almost 45% from its peak of 2859.12 hit on October 31, 2007
source:
Quick Market Stats: Week Ending 10/24
http://www.cnbc.com/id/27366066/site/14081545?__source=yahoo%7Cheadline%7Cquote%7Ctext%7C&par=yahoo
No doubt that, to me at least, trading looked manipulated on earnings day. Not too unlike a pinky. But that is not so unusual these days esp. in stocks priced around $1.00. And LVLT is know for its volatility.
You are not crazy though, at least not in that respect :) Neither of the links in your post worked. Going private with it? That seems doubtful to me but I've seen it brought up before. And if they really are in possession of 50%+ shares can't they pretty much vote however they want and control the Co without going private? But if it was going that way, now or soon would be a good time to do it.
LOL - yeah, now all we need is a nutty doctor to replace J Q Crowe and the company to announce an acquisition that will triple the bottom line, just before they stop reporting. $25/share is next, then .0009!
But at least LVLT trades legitimately in the AH and we could be a part of those 2.5M share trades if we want to.
Did you get the $5M cash I sent you? I know the Capin' got his. Please use it to buy as many shares of LVLT as you can.
OK - Quite the close, those last 15 minutes were really something... .79 up to .88 down to .75 on 3.75 M shares
--the vol on my chart for the last 15 minute bar was 3.75 M when I made the post, now it shows 4.37M.
The 2,487,459 share trade was after 4pm in my book
16:00:12 2487459 0.75 - NASD xt ex
ex = Exempt from trade through rule,
xt = Crossed trade
If you're not living on the edge, your taking up too much space.
Quite the close, those last 15 minutes were really something... .79 up to .88 down to .75 on 3.75M shares
Cheers Capin! Hmmm, LVLT just had a little run from .56 premarket to .88 before close today... that is what happened! :)
Freddie Mac Monthly Volume Summary: September 2008
(dollars in millions)
Oct 24, 2008 8:30:00 AM
MCLEAN, Va., Oct. 24 /PRNewswire-FirstCall/ -- The following is being issued by Freddie Mac (NYSE: FRE):
September 2008 Highlights:
-- On September 6, 2008, the Director of the Federal Housing Finance Agency (FHFA) appointed FHFA as Conservator of Freddie Mac. See our website, www.FreddieMac.com/investors for more information.
-- The aggregate unpaid principal balance (UPB) of our retained portfolio declined to $736.9 billion at September 30, 2008.
-- Total mortgage portfolio has increased at an annualized rate of 5.9% year-to-date and increased 2.3% in September.
-- The amount of retained portfolio mortgage purchase and sales agreements entered into during the month of September totaled $2.5 billion, up from the $(15.4) billion entered into during the month of August.
-- Total guaranteed PCs and Structured Securities issued have increased at an annualized rate of 7.3% year-to-date and 3.6% in September.
-- The single-family delinquency rate for all loans was 122 basis points in September, up from 111 basis points in August.
-- Other Investments (Table 7) includes $50.2 billion of cash and cash equivalents, $8.0 billion of securities purchased under agreements to resell and $10.4 billion of non-agency asset-backed securities as of September 30, 2008.
-- The measure of our exposure to changes in portfolio market value (PMVS- L) averaged $395 million in September. Duration Gap averaged 0 months. See Endnote (15) for further information.
A glossary of selected Monthly Volume Summary terms is available on the Investor Relations page of our website, www.FreddieMac.com/investors.
The Monthly Volume Summary includes volume and statistical data pertaining to our portfolios. Inquiries should be addressed to our Investor Relations Department, which can be reached by calling (703) 903-3883 or writing to:
8200 Jones Branch Drive, Mail Stop 486,
McLean, VA 22102-3110
or sending an email to shareholder@freddiemac.com.
TABLE 1 - TOTAL MORTGAGE PORTFOLIO (1),(2)
Net
Purchases and Increase/
Issuances (3) Sales (4) Liquidations (Decrease)
Sep 2007 $59,650 ($13) ($21,196) $38,441
Oct 40,211 (38) (22,887) 17,286
Nov 41,359 - (22,288) 19,071
Dec (5) 55,072 - (10,688) 44,384
Full-Year 2007 577,691 (3,646) (298,089) 275,956
Jan 2008 32,089 - (23,713) 8,376
Feb 47,723 (143) (26,453) 21,127
Mar 54,604 (829) (36,265) 17,510
Apr 43,287 (636) (34,258) 8,393
May 65,064 (115) (31,708) 33,241
Jun 53,661 (1,721) (41,569) 10,371
Jul 34,631 (2,500) (24,440) 7,691
Aug 25,777 (20,355) (22,617) (17,195)
Sep 27,234 (3,454) (19,632) 4,148
YTD 2008 (6) $384,070 ($29,753) ($260,655) $93,662
Annualized Annualized
Ending Balance Growth Rate Liquidation Rate
Sep 2007 $2,021,935 23.3% 12.8%
Oct 2,039,221 10.3% 13.6%
Nov 2,058,292 11.2% 13.1%
Dec (5) 2,102,676 25.9% 6.2%
Full-Year 2007 2,102,676 15.1% 16.3%
Jan 2008 2,111,052 4.8% 13.5%
Feb 2,132,179 12.0% 15.0%
Mar 2,149,689 9.9% 20.4%
Apr 2,158,082 4.7% 19.1%
May 2,191,323 18.5% 17.6%
Jun 2,201,694 5.7% 22.8%
Jul 2,209,385 4.2% 13.3%
Aug 2,192,190 (9.3%) 12.3%
Sep 2,196,338 2.3% 10.7%
YTD 2008 (6) $2,196,338 5.9% 16.5%
TABLE 2 - RETAINED PORTFOLIO 1
Net
Retained Sales, net of Increase/
Purchases(7) Other Activity(8) Liquidations (Decrease)
Sep 2007 $11,268 ($19,367) ($10,956) ($19,055)
Oct 23,933 (23,197) (10,755) (10,019)
Nov 9,403 (480) (10,716) (1,793)
Dec (5) 27,432 (644) (7,327) 19,461
Full-Year 2007 247,774 (81,468) (149,452) 16,854
Jan 2008 13,518 (7,550) (9,849) (3,881)
Feb 7,870 (6,156) (9,123) (7,409)
Mar 18,598 (5,150) (10,509) 2,939
Apr 36,887 (696) (11,116) 25,075
May 46,126 (2,218) (11,062) 32,846
Jun 37,983 (5,795) (10,773) 21,415
Jul 22,076 (5,775) (9,858) 6,443
Aug 4,353 (32,505) (9,206) (37,358)
Sep 17,373 (33,383) (7,997) (24,007)
YTD 2008 $204,784 ($99,228) ($89,493) $16,063
Mortgage
Purchase and
Ending Annualized Annualized Sales
Balance Growth Rate Liquidation Rate Agreements(9)
Sep 2007 $713,164 (31.2%) 18.0% $11,520
Oct 703,145 (16.9%) 18.1% (11,051)
Nov 701,352 (3.1%) 18.3% (1,981)
Dec 5 720,813 33.3% 12.5% 7,871
Full-Year 2007 720,813 2.4% 21.2% 150,770
Jan 2008 716,932 (6.5%) 16.4% 581
Feb 709,523 (12.4%) 15.3% 14,802
Mar 712,462 5.0% 17.8% 43,479
Apr 737,537 42.2% 18.7% 43,485
May 770,383 53.4% 18.0% 26,249
Jun 791,798 33.4% 16.8% 34,746
Jul 798,241 9.8% 14.9% (324)
Aug 760,883 (56.2%) 13.8% (15,410)
Sep 736,876 (37.9%) 12.6% 2,521
YTD 2008 $736,876 3.0% 16.6% $150,129
TABLE 3 - RETAINED PORTFOLIO COMPONENTS (1)
PCs and Non-Freddie Mac Mortgage- Portfolio
Structured Related Securities Mortgage Ending
Securities Agency Non-Agency Loans Balance
Sep 2007 $356,005 $48,281 $235,851 $73,027 $713,164
Oct 342,083 47,693 238,479 74,890 703,145
Nov 338,403 47,121 237,074 78,754 701,352
Dec(5) 356,970 47,836 233,849 82,158 720,813
Full-Year 2007 356,970 47,836 233,849 82,158 720,813
Jan 2008 356,105 48,182 230,354 82,291 716,932
Feb 349,129 47,798 226,701 85,895 709,523
Mar 346,850 54,349 222,929 88,334 712,462
Apr 375,200 54,668 218,964 88,705 737,537
May 395,355 69,642 215,283 90,103 770,383
Jun 413,907 74,143 212,725 91,023 791,798
Jul 414,365 80,857 209,848 93,171 798,241
Aug 397,573 59,526 206,972 96,812 760,883
Sep 374,946 57,108 204,510 100,312 736,876
YTD 2008 $374,946 $57,108 $204,510 $100,312 $736,876
TABLE 4 - TOTAL GUARANTEED PCs AND STRUCTURED SECURITIES ISSUED (1), (10)
Net
Increase/
Issuances Liquidations(11) (Decrease)
Sep 2007 $54,262 ($15,399) $38,863
Oct 31,085 (17,702) 13,383
Nov 34,215 (17,031) 17,184
Dec (5) 48,210 (4,720) 43,490
Full-Year 2007 470,976 (209,166) 261,810
Jan 2008 29,480 (18,088) 11,392
Feb 42,968 (21,408) 21,560
Mar 43,526 (31,234) 12,292
Apr 40,779 (29,111) 11,668
May 47,310 (26,760) 20,550
Jun 43,981 (36,473) 7,508
Jul 21,712 (20,006) 1,706
Aug 22,072 (18,701) 3,371
Sep 21,994 (16,466) 5,528
YTD 2008 (6) $313,822 ($218,247) $95,575
Annualized Annualized
Ending Balance Growth Rate Liquidation Rate
Sep 2007 $1,664,776 28.7% 11.4%
Oct 1,678,159 9.6% 12.8%
Nov 1,695,343 12.3% 12.2%
Dec (5) 1,738,833 30.8% 3.3%
Full-Year 2007 1,738,833 17.7% 14.2%
Jan 2008 1,750,225 7.9% 12.5%
Feb 1,771,785 14.8% 14.7%
Mar 1,784,077 8.3% 21.2%
Apr 1,795,745 7.8% 19.6%
May 1,816,295 13.7% 17.9%
Jun 1,823,803 5.0% 24.1%
Jul 1,825,509 1.1% 13.2%
Aug 1,828,880 2.2% 12.3%
Sep 1,834,408 3.6% 10.8%
YTD 2008 (6) $1,834,408 7.3% 16.7%
TABLE 5 - DEBT ACTIVITIES (12)
Original
Maturity Original
1 Year
Maturities
Ending and
Balance Issuances Redemptions
Sep 2007 $153,985 $7,620 ($22,001)
Oct 151,531 11,201 (20,876)
Nov 166,536 6,872 (24,257)
Dec (5) 199,498 16,255 (19,520)
Full-Year 2007 199,498 188,548 (209,592)
Jan 2008 202,298 20,459 (28,415)
Feb 200,541 27,343 (32,944)
Mar 201,961 46,916 (16,864)
Apr 232,590 29,507 (31,194)
May 239,226 33,322 (17,768)
Jun 243,557 36,603 (19,330)
Jul 246,316 13,944 (6,657)
Aug 228,635 7,164 (7,312)
Sep 224,230 5,038 (37,277)
YTD 2008 $224,230 $220,296 ($197,761)
Original Maturity > 1 Year
Foreign
Exchange Total Debt
Repurchases Translation Ending Balance Outstanding
Sep 2007 ($287) $929 $615,783 $769,768
Oct (922) 388 605,574 757,105
Nov (256) 333 588,266 754,802
Dec (5) (3,156) (82) 581,763 781,261
Full-Year 2007 (15,096) 2,284 581,763 781,261
Jan 2008 (58) 237 573,986 776,284
Feb (21) 330 568,694 769,235
Mar - 647 599,393 801,354
Apr (1,721) (269) 595,716 828,306
May (1,986) (28) 609,256 848,482
Jun (779) 209 625,959 869,516
Jul (5,103) (148) 627,995 874,311
Aug (2,584) (858) 624,405 853,040
Sep (796) (658) 590,712 814,942
YTD 2008 ($13,048) ($538) $590,712 $814,942
TABLE 6 - DELINQUENCIES (13)
Single-Family Multifamily
Non-Credit Credit
Enhanced Enhanced Total Total
Sep 2007 0.34% 1.34% 0.51% 0.06%
Oct 0.36% 1.40% 0.54% 0.05%
Nov 0.40% 1.55% 0.60% 0.05%
Dec 0.45% 1.62% 0.65% 0.02%
Jan 2008 0.49% 1.73% 0.71% 0.01%
Feb 0.52% 1.78% 0.74% 0.01%
Mar 0.54% 1.81% 0.77% 0.01%
Apr 0.57% 1.88% 0.81% 0.03%
May 0.61% 1.98% 0.86% 0.03%
Jun 0.67% 2.10% 0.93% 0.04%
Jul 0.72% 2.30% 1.01% 0.03%
Aug 0.79% 2.50% 1.11% 0.02%
Sep 0.87% 2.75% 1.22% 0.01%
TABLE 7 - OTHER INVESTMENTS
Ending
Balance (14)
Sep 2007 $50,758
Oct 49,081
Nov 48,424
Dec 50,237
Full-Year 2007 50,237
Jan 2008 47,312
Feb 48,838
Mar 73,804
Apr 78,320
May 70,846
Jun 71,687
Jul 68,697
Aug 84,064
Sep 68,590
YTD 2008 $68,590
TABLE 8 - INTEREST-RATE RISK SENSITIVITY DISCLOSURES (15)
Portfolio
Portfolio Market Market Value-
Value-Level Yield Curve
(PMVS-L)(50bp) (PMVS-YC)(25bp) Duration Gap
(dollars in (dollars in (Rounded to
millions) millions) Nearest Month)
Monthly Quarterly Monthly Quarterly Monthly Quarterly
Average Average Average Average Average Average
Sep 2007 $264 $200 $66 $39 0 0
Oct 322 -- 24 -- 0 --
Nov 378 -- 39 -- 0 --
Dec 385 361 50 37 0 0
Full-Year 2007 261 -- 31 -- 0 --
Jan 2008 438 -- 55 -- 0 --
Feb 331 -- 55 -- 0 --
Mar 437 403 41 50 1 0
Apr 571 -- 20 -- 1 --
May 576 -- 202 -- 0 --
Jun 390 513 49 90 0 0
Jul 348 -- 42 -- 0 --
Aug 271 -- 81 -- 0 --
Sep 395 338 87 70 0 0
YTD 2008 $418 -- $70 -- 0 --
ENDNOTES
(1) The activity and balances set forth in this table represent contractual amounts of unpaid principal balances, which are measures that differ from the balance of the retained portfolio as calculated in conformity with GAAP, and exclude mortgage loans and mortgage-related securities traded, but not yet settled. The retained portfolio amounts set forth in this report exclude premiums, discounts, deferred fees and other basis adjustments, the allowance for loan losses on mortgage loans held-for-investment, and unrealized gains or losses on mortgage-related securities that are reflected in our retained portfolio under GAAP.
(2) Total mortgage portfolio (Table 1) is defined as total guaranteed PCs and Structured Securities issued (Table 4) plus the sum of mortgage loans (Table 3) and non-Freddie Mac mortgage-related securities (agency and non- agency) (Table 3).
(3) Total mortgage portfolio Purchases and Issuances (Table 1) is defined as retained portfolio purchases (Table 2) plus total guaranteed PCs and Structured Securities issued (Table 4) less purchases into the retained portfolio.
(4) Includes: (a) sales of non-Freddie Mac mortgage-related securities from our retained portfolio and (b) sales of multifamily mortgage loans from our retained portfolio. Excludes the transfer of single-family mortgage loans through transactions that qualify as sales and all transfers through swap- based exchanges.
(5) Effective December 2007, we established securitization trusts for the underlying assets of our guaranteed PCs and Structured Securities issued. As a result, we adjusted the reported balance of our mortgage portfolio to reflect the publicly-available security balances of guaranteed PCs and Structured Securities. Previously we reported these balances based on the unpaid principal balance of the underlying mortgage loans. Our reported annualized growth rate and annualized liquidation rate for the month of December 2007 and full-year 2007 presented in Tables 1, 2, and 4 are affected by this reporting change.
(6) Issuances and liquidations for the nine months ended September 30, 2008 include approximately $18.8 billion of conversions of previously issued long-term credit guarantees into either PCs or Structured Transactions. These conversion amounts, based on the unpaid principal balance of the single-family mortgage loans, are included in liquidations, representing the termination of the original agreement and, in the same month, are included in issuances, representing the new securities issued. Excluding these conversions, the amount of our issuances for the nine months ended September 30, 2008 would have been $295 billion in Table 4 and the liquidation rates for the nine months ended September 30, 2008 in Tables 1 and 4 would have been 15.3% and 15.3%, respectively. As of September 30, 2008 the ending balance of our PCs and Structured Securities, excluding outstanding long-term credit guarantees would have been $1,822 billion in Table 4.
(7) Single-family mortgage loans purchased for cash are reported net of transfers of such mortgage loans through transactions that qualify as sales under GAAP as well as all transfers through swap-based exchanges.
(8) See Endnote 4. Also includes: (a) net additions to our retained portfolio for delinquent mortgage loans purchased out of PC pools, (b) balloon reset mortgages purchased out of PC pools and (c) transfers of our PCs and Structured Securities from our retained portfolio reported as sales.
(9) Mortgage purchases and sales agreements reflects trades entered into during the month and includes: (a) monthly commitments to purchase mortgage- related securities for our retained portfolio offset by monthly commitments to sell mortgage-related securities out of our retained portfolio during the month and (b) the net amount of monthly mortgage loan purchases and sales agreements entered into during the month. Substantially all of these commitments are settled by delivery of a mortgage-related security or mortgage loan; the rest are net settled for cash. Mortgage purchases and sales agreements also includes the net amount of mortgage-related securities that we expect to purchase or sell pursuant to written and purchased options entered into during the month for which we expect to take or make delivery of the securities. In some instances, commitments may settle during the same period in which we have entered into the related commitment.
(10) Includes PCs, Structured Securities and tax-exempt multifamily housing revenue bonds for which we provide a guarantee, as well as credit- related commitments with respect to single-family mortgage loans held by third parties. Excludes Structured Securities where we have resecuritized our PCs and Structured Securities. Resecuritized securities do not increase our credit-related exposure and consist of single-class Structured Securities backed by PCs, Real Estate Mortgage Investment Conduits (REMICs) and principal-only strips. Notional balances of interest-only strips are excluded because this table is based on unpaid principal balance. Some of the excluded REMICs are modifiable and combinable REMIC tranches, where the holder has the option to exchange the security tranches for other pre-defined security tranches. Additional information concerning our guarantees issued through resecuritization can be found in our Registration Statement on Form 10, dated July 18, 2008.
(11) Represents principal repayments relating to PCs and Structured Securities including those backed by non-Freddie Mac mortgage-related securities and relating to securities issued by others and single-family mortgage loans held by third parties that we guarantee. Also includes our purchases of delinquent mortgage loans and balloon reset mortgage loans out of PC pools.
(12) Represents the combined balance and activity of our senior and subordinated debt based on the par values of these liabilities.
(13) Single-family delinquencies are based on the number of mortgages 90 days or more delinquent or in foreclosure as of period end while multifamily delinquencies are based on net carrying value of mortgages 90 days or more delinquent or in foreclosure as of period end. Delinquency rates presented in Table 6 exclude mortgage loans underlying Structured Transactions and PCs backed by Ginnie Mae Certificates as well as mortgage loans whose original contractual terms have been modified under an agreement with the borrower as long as the borrower is less than 90 days delinquent under the modified contractual terms. Structured Transactions typically have underlying mortgage loans with a variety of risk characteristics. Many of these Structured Transactions have security-level credit protections from losses in addition to loan-level credit protection that may also exist. Additional information concerning Structured Transactions can be found in our Registration Statement on Form 10, dated July 18, 2008.
The unpaid principal balance of our single-family Structured Transactions at September 30, 2008 was $24.4 billion, representing approximately 1% of our total mortgage portfolio. Included in this balance is $1.9 billion that are securitized by FHA/VA loans, for which those agencies provide recourse for 100% of qualifying losses associated with the loan and $5.3 billion that are backed by subordinated securities, which benefit from credit protection from the related subordinated tranches, which we do not purchase. The remaining $17.2 billion of our Structured Transactions as of September 30, 2008 are single-class, or pass-through securities, including $10.0 billion of option ARMs, which do not benefit from structural or other credit enhancement protections. The delinquency rate for our single-family Structured Transactions was 6.3% at September 30, 2008. The total single- family delinquency rate including our Structured Transactions was 1.32% at September 30, 2008. Below are the delinquency rates of our Structured Transactions population:
Structured Transactions securitized by: FHA/VA loans 17.8%; subordinated securities 16.9%; option ARM pass-through securities 6.7%; Other pass-through securities 0.1%.
Previously reported delinquency data is subject to change to reflect currently available information. Revisions to previously reported delinquency rates have not been significant nor have they significantly affected the overall trend of our single-family "credit enhanced" and "total" delinquency rates.
(14) Other Investments ending balance consists of our cash and investments portfolio, which as of September 30, 2008 includes; $50.2 billion of cash and cash equivalents; $8.0 billion of securities purchased under agreements to resell; and $10.4 billion of non-mortgage investments, excluding non-mortgage investment securities traded, but not yet settled. Non-mortgage investments within this balance are presented at fair value.
(15) Our PMVS and duration gap measures provide useful estimates of key interest-rate risk and include the impact of our purchases and sales of derivative instruments, which we use to limit our exposure to changes in interest rates. Our PMVS measures are estimates of the amount of average potential pre-tax loss in the market value of our net assets due to parallel (PMVS-L) and non-parallel (PMVS-YC) changes in London Interbank Offered Rates (LIBOR). While we believe that our PMVS and duration gap metrics are useful risk management tools, they should be understood as estimates rather than precise measurements. Methodologies employed to calculate interest-rate risk sensitivity disclosures are periodically changed on a prospective basis to reflect improvements in the underlying estimation processes. For the month of September, we made changes to update our prepayment and model assumptions consistent with more current information related to certain securities that resulted in a decrease of $503 million in PMVS-L, a decrease of $88 million in PMVS-YC and an increase of one month in duration gap.
SOURCE Freddie Mac
----------------------------------------------
Michael Cosgrove of Freddie Mac
+1-703-903-2123
That said - I got some this morning. Now waiting for the meteor. :)
Can't always be sure the buys and sells count is accurate. They just go by trades at bid or ask.
.80 sure was interesting resistance today. The volume was incredible. 162M. More than 5X the 10 day avg. The amount of buying today as it fell makes it look like a lot of shorts took their gains. Unless that's what it looks like when a bunch of new shorts take their positions under the new SEC rules. Of course, that data will be 2 weeks old by the time we see it. Advantage: shorts. BUt if the shorts have left in a big way, then advantage: longs.
Also need to see how the institutional holders behaved today.
And how many analysts change their rankings in the coming weeks.
And watch the markets.
There are a lot of forces at work here imo.
I did almost the same thing as you - it moved through the price of my order faster than I could change it, and when I looked again it was $1.00. I thought that would hold for sure, since it bounced right off it and the Q was better than expected. But not stellar.
I was not looking for a stellar Q, I just really didn't think it would be so punished for just being BAU. Given the current climate, I figured continued growth and beating estimates would be looked upon as a good thing. Well, they narrowed guidance. A bold move for a company in their position who was criticized and recently changed their stance on guidance. They never seem to get that one right.
At the end of the day we are looking at: -.08 per share in earnings vs -.60 per share in the market. Wow.
Still looking to buy a bunch of cheap ones as before the markets fell I thought LVLT was a bargain at $2.50 - $3.00... and it can move pretty quickly. There should be some new traders in as of today, maybe some shorts in around .80. For now I will watch and wait.
At last count about 16% of the float was short. I wish there was daily short interest reporting.
LVLT same PPS as FRE... eom
Level 3 Reports Third Quarter 2008 Results
- Company reduces outstanding debt by $179 million in September and October
Oct 23, 2008 8:00:00 AM
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BROOMFIELD, Colo., Oct. 23 /PRNewswire-FirstCall/ -- Level 3 Communications, Inc. (Nasdaq: LVLT) today reported third quarter results. Consolidated revenue was $1.07 billion for the third quarter 2008, compared to $1.06 billion for the third quarter 2007. Second quarter 2008 consolidated revenue was $1.09 billion.
"Our operating results for the quarter show the continuing margin expansion and growth in Consolidated Adjusted EBITDA," said James Crowe, president and CEO of Level 3. "Our year over year improvements were achieved through Core Communications Services revenue growth and our continued disciplined approach to cost management. And despite the current economic environment, we believe that our extensive fiber based network and full suite of services position us well to attract additional market share."
Consolidated Adjusted EBITDA(a) was $255 million in the third quarter 2008, a 19 percent increase from $215 million for the third quarter 2007, or a 21 percent increase from $210 million on a Normalized Basis (see Note below). Consolidated Adjusted EBITDA for the second quarter 2008 was $251 million, or $237 million on a Normalized Basis.
The net loss for the third quarter 2008 was $120 million, or $0.08 per share, compared to a net loss of $174 million, or $0.11 per share for the third quarter 2007. For the second quarter 2008, the net loss was $33 million, or $0.02 per share, which included a $96 million, or $0.06 per share gain on the sale of the company's Vyvx Advertising Distribution business.
Third Quarter 2008 Financial Results
Normalized
Third Third Third
Quarter Quarter Quarter
Metric 2008 2007 2007
($ in millions) Results Results Results(3)(4)
Core Communications
Services Revenue $964 $909 $899
Other Communications
Services Revenue(1) $90 $134 $134
Total Communications
Revenue $1,054 $1,043 $1,033
Other Revenue $16 $18 $18
Total Consolidated Revenue $1,070 $1,061 $1,051
Consolidated Adjusted EBITDA(2)(3) $255 $215 $210
Capital Expenditures $123 $155 N/A
Unlevered Cash Flow(3) $124 $76 N/A
Free Cash Flow(3) ($4) $(54) N/A
Communications Gross Margin(3) 59.7% 58.0% 57.8%
Communications Adjusted EBITDA
Margin(3) 24.4% 20.6% 20.3%
(1) Other Communications Revenue also includes revenue previously
reported as SBC Contract Services revenue.
(2) Consolidated Adjusted EBITDA for the third quarter 2008 excludes $18
million in non-cash compensation expense and includes $2 million of
cash restructuring charges. Consolidated Adjusted EBITDA for the
third quarter 2007 excludes $24 million in non-cash compensation
expense and includes $1 million of cash restructuring charges.
(3) See schedule of non-GAAP metrics for definition and reconciliation to
GAAP measures.
(4) Excludes results of Vyvx Advertising Distribution business and the
$12 million of deferred revenue recognized as revenue during the
second quarter 2008 that should have been recognized as revenue in
prior years.
Note: For purposes of this press release, "on a Normalized Basis" means reported prior period results after subtracting $12 million of deferred revenue that was recognized as revenue in the second quarter 2008 that should have been recognized as revenue in prior years and the results of the Vyvx Advertising Distribution business, which was sold on June 5, 2008.
Communications Business Results
Revenue
Total Communications revenue for the third quarter 2008 was $1.05 billion, compared to $1.04 billion in the third quarter 2007 and $1.07 billion in the second quarter 2008.
Core Communications Services
Core Communications Services revenue, which includes Core Network Services and Wholesale Voice Services, was $964 million in the third quarter 2008, a 6 percent increase over $909 million in the third quarter 2007, or $899 million on a Normalized Basis. Core Communications Services revenue was $972 million in the second quarter 2008, or $954 million on a Normalized Basis.
Core Network Services revenue was $791 million in the third quarter 2008, compared to $756 million in the third quarter 2007 and $797 million in the second quarter 2008, or $746 million and $779 million on a Normalized Basis for the third quarter 2007 and the second quarter 2008, respectively.
Wholesale Voice Services revenue in the third quarter 2008 was $173 million compared to $153 million in the third quarter 2007 and $175 million in the second quarter 2008.
On a Normalized Basis, third quarter 2008 Core Communications Services revenue grew 7 percent compared to the third quarter 2007 and Core Network Services revenue grew 6 percent from the third quarter 2007. The year over year Core Network Services growth reflects ongoing demand from our European customers, wireless carriers, content providers, and regional U.S. carriers.
Normalized Normalized
Third Third Second
Quarter Quarter Quarter
Metric 2008 2007 Percent 2008 Percent
($ in millions) Results Results(1) Change Results(1) Change
Core Network
Services $791 $746 6% $779 2%
Wholesale Voice
Services $173 $153 13% $175 (1)%
Total Core
Communications
Services $964 $899 7% $954 1%
Other
Communications $90 $134 (33%) $100 (10%)
Revenue
Total
Communications
Revenue $1,054 $1,033 2% $1,054 --
Consolidated
Adjusted EBITDA $255 $210 21% $237 8%
(1) Excludes results of Vyvx Advertising Distribution business and the
$12 million of deferred revenue recognized as revenue during the
second quarter 2008 that should have been recognized as revenue in
prior years.
Core Communications Services revenue by market group was:
Percent of
Third
Quarter Total Normalized Normalized
Core Third Second
Core Communications Third Communications Quarter Quarter
Services Revenue Quarter Services 2007 2008
($ in millions) 2008 Revenue Results(1) Results(1)
Wholesale Markets Group $539 56% $506 $537
Business Markets Group $241 25% $240 $240
Content Markets Group $98 10% $86 $94
European Markets Group $86 9% $67 $83
Total Core Communications
Services Revenue $964 100% $899 $954
(1) Excludes results of Vyvx Advertising Distribution business and the
$12 million of deferred revenue recognized as revenue during the
second quarter 2008 that should have been recognized as revenue in
prior years.
Core Network Services revenue and growth by market group was:
Normalized Normalized
Third Third Second
Core Network Services Quarter Quarter Quarter
Revenue 2008 2007 Percent 2008 Percent
($ in millions) Results Results(1) Change Results(1) Change
Wholesale Markets Group $382 $365 5% $377 1%
Business Markets Group $235 $236 -- $235 --
Content Markets Group $97 $85 14% $93 4%
European Markets Group $77 $60 28% $74 4%
Total Core Network
Services Revenue $791 $746 6% $779 2%
(1) Excludes results of Vyvx Advertising Distribution business and the
$12 million of deferred revenue recognized as revenue during the
second quarter 2008 that should have been recognized as revenue in
prior years.
Other Communications Services
For periods prior to third quarter 2008, Other Communications Services revenue and SBC Contract Services revenue were reported separately. During the second quarter 2008, the gross margin commitment on the SBC agreement was satisfied, and, as a result, beginning with the third quarter 2008, the company is including SBC Contract Services revenue in Other Communications Services revenue. Now combined, Other Communications Service revenue declined 33 percent in the third quarter 2008 to $90 million, compared to $134 million in the third quarter 2007. Other Communications Services revenue was $100 million in the second quarter 2008.
Deferred Revenue
Communications deferred revenue was $910 million at the end of the third quarter 2008, compared to $939 million at the end of the third quarter 2007. Deferred revenue at the end of the second quarter 2008 was $932 million. The decrease of $22 million from the second quarter was primarily a result of the effects of foreign currency and amortization in excess of new deferred revenue transactions during the third quarter 2008.
Cost of Revenue
Communications cost of revenue for the third quarter 2008 was $425 million versus $438 million in the third quarter 2007. Cost of revenue was $442 million in the second quarter 2008.
Communications Gross Margin was $629 million, or 59.7 percent in the third quarter 2008, compared to $605 million, or 58.0 percent in the third quarter 2007. For the second quarter 2008, Communications Gross Margin was $630 million or 58.8 percent.
Selling, General and Administrative (SG&A) Expense
Communications SG&A expense, including non-cash compensation expense, was $388 million for the third quarter 2008, versus $413 million for the third quarter 2007 and $393 million for the second quarter 2008. Communications SG&A includes non-cash compensation expense of $18 million, $24 million, and $20 million for the third quarter 2008, third quarter 2007 and second quarter 2008, respectively.
Excluding non-cash compensation expense, Communications SG&A was $370 million in the third quarter 2008, a 5 percent reduction compared to $389 million in the third quarter 2007. Communications SG&A, excluding non-cash compensation, was $373 million in the second quarter 2008.
Adjusted EBITDA
Adjusted EBITDA for the communications business was $257 million for the third quarter 2008, a 20 percent increase compared to $215 million for the third quarter 2007, or $210 million on a Normalized Basis. Second quarter 2008 Communications Adjusted EBITDA was $253 million, or $239 million on a Normalized Basis.
Communications Adjusted EBITDA margin was 24.4 percent in the third quarter 2008, versus 20.6 percent in the third quarter 2007, or 20.3 percent on a Normalized Basis and 23.6 percent in the previous quarter, or 22.7 percent on a Normalized Basis.
Communications Adjusted EBITDA excludes non-cash compensation expense and includes severance and restructuring charges related to integration activities of $2 million, $1 million and $4 million for the third quarter 2008, third quarter 2007 and second quarter 2008, respectively.
Liquidity and Debt Maturities
During the third quarter 2008, Unlevered Cash Flow was $124 million, versus $76 million in the third quarter 2007 and $126 million for the previous quarter. Consolidated Free Cash Flow for the third quarter 2008 was negative $4 million, versus negative $54 million for the third quarter 2007 and positive $4 million for the second quarter 2008.
During the third quarter 2008, Level 3 acquired approximately $39 million aggregate principal amount of its 6% convertible subordinated notes due 2009 and approximately $32 million aggregate principal amount of its 6% convertible subordinated notes due 2010, for approximately $68 million, plus accrued and unpaid interest. The company recognized a gain of $3 million in the third quarter associated with these transactions. This activity will result in an annualized net cash interest expense savings of approximately $3 million.
As of September 30, 2008, the company had approximately $587 million of unrestricted cash and marketable securities.
Subsequent to the end of the third quarter 2008, as previously announced, Level 3 entered into exchange transactions with several institutional holders of certain of Level 3's convertible senior notes and convertible subordinated notes. A total of $108 million aggregate principal amount of convertible debt was exchanged for approximately 47.6 million shares of Level 3's common stock. These transactions will result in an annualized net cash interest expense savings of approximately $7 million. In total, the company issued approximately 47.6 million shares in lieu of $126 million of cash principal and future net cash interest payments. In the fourth quarter 2008, the company expects to recognize a $44 million loss in Other Income (Expense) associated with these exchange transactions.
On a pro forma basis after giving effect to these exchange transactions, the company had approximately $6.66 billion of debt outstanding at September 30, 2008.
Project Unity Status
Project planning and development for Project Unity, the company's integrated process and systems platform, began in the fourth quarter 2006 and system releases commenced in the third quarter 2007. Progress continued during the third quarter 2008 as expected.
Business Outlook
Effect of Macroeconomic Environment
Recently, Level 3 has seen some effects of the uncertainty in the financial markets and the broader economy. The effect has varied by market group.
-- The Wholesale Markets Group has seen a lengthening of sales cycles. However, the company has seen increased sales interest as certain large customers express heightened interest in purchasing more cost effective local and regional transport services, particularly local and regional connectivity to and between mobile switching centers, enterprise buildings and other traffic aggregation points.
-- The Business Markets Group has also experienced a general lengthening of sales cycles across several segments. The company has reviewed its exposure to distressed financial services institutions and the company has not experienced any material negative effects from customers in this market segment.
-- The Content Markets Group has experienced a decrease in sales to certain media and entertainment companies who may be dependent on external financing sources. At the same time, the company has seen increased sales activity among larger media, entertainment and sports enterprises who seek to make more content available online.
-- To date, the European Markets Group has not seen the effect of the macroeconomic environment on sales activity.
"More generally, on a consolidated basis, we have not experienced increased churn, bad debt, or receivables aging," said Crowe. "However, we continue to closely monitor these metrics, particularly among lower credit quality customers."
Guidance Update
"Over the course of this year, we have continued to grow our core revenues, increase Consolidated Adjusted EBITDA, expand our margins, and improve Free Cash Flow performance," said Sunit Patel, executive vice president and CFO of Level 3. "As we approach the end of 2008, we are narrowing and adjusting our previous guidance ranges for 2008. We now expect Core Communications Services revenue to grow approximately 7.5 percent from 2007 to 2008 when revenue from the Vyvx Advertising Distribution business is excluded for both periods. We are narrowing our range for 2008 Consolidated Adjusted EBITDA guidance to $980 million to $1.0 billion, which is within our previously issued guidance of $950 million to $1.1 billion."
"In the fourth quarter 2008, we expect to see continued growth in both Core Communications Services revenue and Consolidated Adjusted EBITDA, as well as positive Free Cash Flow performance. As we have said previously, we expect to be Free Cash Flow positive for the second half of 2008 in the aggregate and for the full year 2009."
Recently, Level 3 completed several liability management transactions, reducing its outstanding maturities by $179 million, and reducing net cash interest expense by approximately $10 million on an annualized basis. The company will continue to be opportunistic in its approach to liability management. As previously discussed, the company remains confident that it has sufficient cash on hand to repay the remaining $305 million of September 2009 maturities.
Summary
"These are uncertain times for both businesses and individuals," said Crowe. "However, our company and its employees have experienced other periods of uncertainty, particularly during the telecommunications market disruption earlier this decade.
"And, today, we believe both the industry environment and our own position are much stronger. The industry pricing and demand environment is far better today than it was at the beginning of the decade. We have a large, growing and diversified revenue base. We have the right products and services with strong operating margins. And, most importantly, we have rapidly improving Free Cash Flow."
Conference Call and Web Site Information
Level 3 will hold a conference call to discuss the company's third quarter results at 10 a.m. EDT today. The call will be broadcast live on Level 3's Web site at http://www.Level3.com. If you are unable to join the call via the Web, you may access the call at 888-240-9299 or 913-312-1237.
The call will be archived and available on Level 3's Web site at http://lvlt.client.shareholder.com/events.cfm or you may access an audio replay until 12:00 a.m. EDT on Sunday, November 2, by dialing 888-203-1112 or 719-457-0820 access code 4368821. For additional information please call 720-888-2502.
The company will post an investor presentation that summarizes the financial and operational progress for the third quarter 2008 on its Web site at http://lvlt.client.shareholder.com/index.cfm
About Level 3 Communications
Level 3 Communications, Inc. (NASDAQ: LVLT) is a leading international provider of fiber-based communications services. Enterprise, content, wholesale and government customers rely on Level 3 to deliver communications services with an industry-leading combination of scalability and quality, over an end-to-end fiber network. Level 3 offers a portfolio of metro and long haul services over an end-to-end fiber network, including transport, data, internet, content delivery and voice. For more information, visit http://www.Level3.com.
Level 3 Communications, Level 3, the red 3D brackets and the Level 3 Communications logo are registered service marks of Level 3 Communications, LLC and/or its affiliates in the United States and/or other countries. Level 3 services are provided by wholly owned subsidiaries of Level 3 Communications, Inc. Any other service, product or company names recited herein are trademarks or service marks of their respective owners.
Forward-Looking Statement
Some of the statements made in this press release are forward looking in nature. These statements are based on management's current expectations or beliefs. These forward looking statements are not a guarantee of performance and are subject to a number of uncertainties and other factors, many of which are outside Level 3's control, which could cause actual events to differ materially from those expressed or implied by the statements. The most important factors that could prevent Level 3 from achieving its stated goals include, but are not limited to the company's ability to: successfully integrate acquisitions; increase the volume of traffic on the network; defend intellectual property and proprietary rights; develop new products and services that meet customer demands and generate acceptable margins; successfully complete commercial testing of new technology and information systems to support new products and services; attract and retain qualified management and other personnel; and meet all of the terms and conditions of debt obligations. Additional information concerning these and other important factors can be found within Level 3's filings with the Securities and Exchange Commission. Statements in this press release should be evaluated in light of these important factors. Level 3 is under no obligation to, and expressly disclaims any such obligation to, update or alter its forward-looking statements, whether as a result of new information, future events, or otherwise.
(a) Non-GAAP Metrics
Pursuant to Regulation G, the Company is hereby providing a reconciliation of non-GAAP financial metrics to the most directly comparable GAAP measure.
The Company provides projections that include non-GAAP metrics that the Company deems relevant to management and investors including a reconciliation of the non-GAAP financial metrics to GAAP that includes forward-looking statements with respect to the information identified as a projection. Level 3 has made a number of assumptions in preparing our projections, including assumptions as to the components of financial metrics. These assumptions, including dollar amounts of the various components that comprise a financial metric, may or may not prove to be correct. We caution you that these forward- looking statements are only projections, which are subject to risks and uncertainties including technological uncertainty, financial variations, changes in the regulatory environment, industry growth and trend predictions. Please see the Company's Annual Report on Form 10-K for a description of these risks and uncertainties.
In order to provide projections with respect to non-GAAP metrics, we are required to indicate a range for GAAP measures that are components of the reconciliation of the non-GAAP metric. The provision of these ranges is in no way meant to indicate that the Company is explicitly or implicitly providing projections on those GAAP components of the reconciliation. In order to reconcile the non-GAAP financial metric to GAAP, the Company has to use ranges for the GAAP components that arithmetically add up to the non-GAAP financial metric. While the Company feels reasonably comfortable about the projections for its non-GAAP financial metrics, it fully expects that the ranges used for the GAAP components will vary from actual results. We will consider our projections of non-GAAP financial metrics to be accurate if the specific non- GAAP metric is met or exceeded, even if the GAAP components of the reconciliation are different from those provided in an earlier reconciliation.
Consolidated Revenue on a Normalized Basis is defined as total revenue from the Condensed Consolidated Statements of Operations less the benefit of deferred revenue recognized in the second quarter of 2008 that should have been recognized in prior years and less Vyvx advertising distribution business revenue.
Communications Revenue on a Normalized Basis is defined as communications revenue from the Condensed Consolidated Statements of Operations less the benefit of deferred revenue recognized in the second quarter of 2008 that should have been recognized in prior years and less Vyvx advertising distribution business revenue.
Core Communications Services Revenue on a Normalized Basis includes core network services revenue and wholesale voice services revenue less the benefit of deferred revenue recognized in the second quarter of 2008 that should have been recognized in prior years and less Vyvx advertising distribution business revenue.
Core Network Services Revenue on a Normalized Basis includes revenue from
transport and infrastructure, IP and data services, local and enterprise voice
services and Level 3 Vyvx broadcast services less the benefit of deferred
revenue recognized in the second quarter of 2008 that should have been
recognized in prior years and less Vyvx advertising distribution business
revenue.
Vyvx Q2 2008
Advertising Benefit of Q2 2008
Advertising Deferred On a
Revenue Metrics Distribution Revenue Normalized
($ in millions) Q2 2008 Services Adjustment Basis
Core Network Services
Revenue:
Wholesale Markets Group $388 $- $(11) $377
Business Markets Group 236 - (1) 235
Content Markets Group 99 (6) - 93
European Markets Group 74 - - 74
Total Core Network Services
Revenue 797 (6) (12) 779
Wholesale Voice Services
Revenue:
Wholesale Markets Group 160 - - 160
Business Markets Group 5 - - 5
Content Markets Group 1 - - 1
European Markets Group 9 - - 9
Total Wholesale Voice
Services Revenue 175 - - 175
Core Communication Services
Revenue:
Wholesale Markets Group 548 - (11) 537
Business Markets Group 241 - (1) 240
Content Markets Group 100 (6) - 94
European Markets Group 83 - - 83
Total Core Communication
Services Revenue 972 (6) (12) 954
Other Communications
Revenue 100 - - 100
Total Communications
Revenue 1,072 (6) (12) 1,054
Other Revenue 18 - - 18
Total Consolidated
Revenue $1,090 $(6) $(12) $1,072
Vyvx Q3 2007
Advertising On a
Revenue Metrics Distribution Normalized
($ in millions) Q3 2007 Services Basis
Core Network Services
Revenue:
Wholesale Markets Group $365 $- $365
Business Markets Group 236 - 236
Content Markets Group 95 (10) 85
European Markets Group 60 - 60
Total Core Network Services
Revenue 756 (10) 746
Wholesale Voice Services
Revenue:
Wholesale Markets Group 141 - 141
Business Markets Group 4 - 4
Content Markets Group 1 - 1
European Markets Group 7 - 7
Total Wholesale Voice
Services Revenue 153 - 153
Core Communication Services
Revenue:
Wholesale Markets Group 506 - 506
Business Markets Group 240 - 240
Content Markets Group 96 (10) 86
European Markets Group 67 - 67
Total Core Communication
Services Revenue 909 (10) 899
Other Communications Revenue 134 - 134
Total Communications Revenue 1,043 (10) 1,033
Other Revenue 18 - 18
Total Consolidated Revenue $1,061 $(10) $1,051
Revenue Metrics
($ in millions) Q3 2007 Q4 2007 Q1 2008 Q2 2008 Q3 2008
Consolidated revenue $1,061 $1,100 $1,092 $1,090 $1,070
Vyvx Advertising Distribution
revenue (10) (11) (9) (6) -
Benefit of deferred revenue
adjustment - - - (12) -
Consolidated revenue on a
Normalized Basis $1,051 $1,089 $1,083 $1,072 $1,070
Communications revenue $1,043 $1,084 $1,066 $1,072 $1,054
Vyvx Advertising Distribution
revenue (10) (11) (9) (6) -
Benefit of deferred revenue
adjustment - - - (12) -
Communications revenue on a
Normalized Basis $1,033 $1,073 $1,057 $1,054 $1,054
Core Communications revenue $909 $955 $958 $972 $964
Vyvx Advertising Distribution
revenue (10) (11) (9) (6) -
Benefit of deferred revenue
adjustment - - - (12) -
Core Communications revenue on a
Normalized Basis $899 $944 $949 $954 $964
Core Network Services revenue $756 $783 $774 $797 $791
Vyvx Advertising Distribution
revenue (10) (11) (9) (6) -
Benefit of deferred revenue
adjustment - - - (12) -
Core Network Services revenue on a
Normalized Basis $746 $772 $765 $779 $791
Communications Cost of Revenue includes leased capacity, right-of-way costs, access charges and other third party circuit costs directly attributable to the network, as well as costs of assets sold. Communications Cost of revenue also includes satellite transponder lease costs, package delivery costs and blank tape media costs attributable to the video business. Delivery costs and blank tape media costs attributable to the Vyvx advertising distribution business are included in Communications Cost of revenue through the date of the Vyvx advertising distribution business disposition on June 5, 2008. Communications Cost of revenue does not include depreciation and amortization.
Communications Cost of Revenue on a Normalized Basis is defined as Communications Cost of Revenue from the Condensed Consolidated Statements of Operations less the costs of such revenues from the Vyvx advertising distribution business.
Communications Gross Margin ($) is defined as Communications Revenue less Communications Cost of Revenue from the Condensed Consolidated Statements of Operations.
Communications Gross Margin (%) is defined as communications gross margin ($) divided by communications revenue. Management believes that communications gross margin is a relevant metric to provide to investors, as it is a metric that management uses to measure the margin available to the Company after it pays third party network services costs; in essence, a measure of the efficiency of the Company's network.
Communications Gross Margin ($) on a Normalized Basis is defined as Communications Revenue on a Normalized Basis less Communications Cost of Revenue on a Normalized Basis.
Communications Gross Margin (%) on a Normalized Basis is defined as Communications Gross Margin ($), Excluding Non-Recurring Items divided by Communications Revenue, Excluding Non-Recurring Items.
Vyvx Q3 2007
Advertising On a
Gross Margin Metrics Distribution Normalized
($ in millions) Q3 2008 Q2 2008 Q3 2007 Services Basis
Total Communications
Revenue $1,054 $1,072 $1,043 $(10) $1,033
Total Communications
Cost of Revenue 425 442 438 (2) 436
Total Communications
Gross Margin ($) $629 $630 $605 $597
Total Communications
Gross Margin (%) 59.7% 58.8% 58.0% 57.8%
Communications Gross Margin and SG&A
Metrics
($ in millions) Q3 2007 Q4 2007 Q1 2008 Q2 2008 Q3 2008
Communications cost of
revenue $438 $444 $459 $442 $425
Vyvx Advertising Distribution
cost of revenue (2) (2) (2) (2) -
Communications cost of revenue
on a Normalized Basis $436 $442 $457 $440 $425
Communications revenue on a
Normalized Basis $1,033 $1,073 $1,057 $1,054 $1,054
Communications cost of revenue
on a Normalized Basis 436 442 457 440 425
Communications gross margin ($)
on a Normalized Basis $597 $631 $600 $614 $629
Communications gross margin (%)
on a Normalized Basis 57.8% 58.8% 56.8% 58.3% 59.7%
Communications SG&A expense $413 $439 $418 $393 $388
Vyvx Advertising Distribution
SG&A expense (3) (3) (3) (2) -
Non-cash compensation expense (24) (50) (23) (20) (18)
Communications SG&A expense
on a Normalized Basis $386 $386 $392 $371 $370
Communications revenue on a
Normalized Basis $1,033 $1,073 $1,057 $ 1,054 $1,054
Communications SG&A expense
as a % of Communications
revenue on a Normalized
Basis 37.4% 36.0% 37.1% 35.2% 35.1%
Consolidated Adjusted EBITDA is defined as net income/(loss) from the Condensed Consolidated Statements of Operations before income taxes, total other income/(expense), non-cash impairment charges, depreciation and amortization and non-cash stock compensation expense.
Consolidated Adjusted EBITDA on a Normalized Basis is defined as Consolidated Adjusted EBITDA less the benefit of deferred revenue recognized in the second quarter of 2008 that should have been recognized in prior years and less the Vyvx advertising distribution business Adjusted EBITDA.
Communications Adjusted EBITDA on a Normalized Basis is defined as Communications Adjusted EBITDA less the benefit of deferred revenue recognized in the second quarter of 2008 that should have been recognized in prior years and less the Vyvx advertising distribution business Adjusted EBITDA.
Communications Adjusted EBITDA Margin is defined as Communications Adjusted EBITDA divided by communications revenue.
Consolidated Adjusted EBITDA Margin on a Normalized Basis is defined as Consolidated Adjusted EBITDA on a Normalized Basis divided by Consolidated Revenue on a Normalized Basis.
Communications Adjusted EBITDA Margin on a Normalized Basis is defined as Communications Adjusted EBITDA on a Normalized Basis divided by Communications Revenue on a Normalized Basis.
EBITDA Metrics Q3 2008
($ in millions) Communications Other Consolidated
Net Income (Loss) $(118) $(2) $(120)
Income Tax (Benefit) Expense - - -
Total Other (Income) Expense 126 (2) 124
Depreciation and Amortization Expense 231 2 233
Non-Cash Stock Compensation Expense 18 - 18
Adjusted EBITDA $257 $(2) $255
EBITDA Metrics Q2 2008
($ in millions) Communications Other Consolidated
Net Income (Loss) $(29) $(4) $(33)
Income Tax (Benefit) Expense 1 - 1
Total Other (Income) Expense 29 - 29
Depreciation and Amortization Expense 232 2 234
Non-Cash Stock Compensation Expense 20 - 20
Adjusted EBITDA 253 (2) 251
Vyvx Advertising Distribution Adjusted
EBITDA (2) - (2)
Q2 2008 Benefit of Deferred Revenue
Adjustment (12) - (12)
Adjusted EBITDA on a Normalized Basis $239 $(2) $237
EBITDA Metrics Q3 2007
($ in millions) Communications Other Consolidated
Net Income (Loss) $(178) $4 $(174)
Income Tax (Benefit) Expense 2 (6) (4)
Total Other (Income) Expense 120 - 120
Depreciation and Amortization Expense 247 2 249
Non-Cash Stock Compensation Expense 24 - 24
Adjusted EBITDA 215 - 215
Vyvx Advertising Distribution Adjusted
EBITDA (5) - (5)
Adjusted EBITDA on a Normalized Basis $210 $- $210
EBITDA Margin Metrics
($ in millions) Q3 2008 Q2 2008 Q3 2007
Communications Revenue $1,054 $1,072 $1,043
Communications Adjusted EBITDA 257 253 215
Communications Adjusted EBITDA Margin 24.4% 23.6% 20.6%
Communications Revenue on a Normalized Basis $1,054 $1,033
Communications Adjusted EBITDA on a Normalized
Basis 239 210
Communications Adjusted EBITDA on a Normalized
Basis 22.7% 20.3%
Consolidated EBITDA Metrics
($ in millions) Q3 2007 Q4 2007 Q1 2008 Q2 2008 Q3 2008
Net Income (Loss) $(174) $(91) $(181) $(33) $(120)
Income Tax (Benefit) Expense (4) (20) 3 1 -
Total Other (Income) Expense 120 82 126 29 124
Depreciation and Amortization
Expense 249 225 240 234 233
Non-Cash Stock Compensation
Expense 24 50 23 20 18
Vyvx Advertising Distribution
EBITDA (5) (6) (4) (2) -
Benefit of deferred revenue
adjustment - - - (12) -
Consolidated Adjusted EBITDA
on a Normalized Basis $210 $240 $207 $237 $255
Consolidated revenue on a
Normalized Basis $1,051 $1,089 $1,083 $1,072 $1,070
Consolidated Adjusted EBITDA
% on a Normalized Basis 20.0% 22.0% 19.1% 22.1% 23.8%
Communications EBITDA Metrics
($ in millions) Q3 2007 Q4 2007 Q1 2008 Q2 2008 Q3 2008
Net Income (Loss) $(178) $(89) $(187) $(29) $(118)
Income Tax (Benefit) Expense 2 (20) 2 1 -
Total Other (Income) Expense 120 82 128 29 126
Depreciation and Amortization
Expense 247 223 239 232 231
Non-Cash Stock Compensation
Expense 24 50 23 20 18
Vyvx Advertising Distribution
EBITDA (5) (6) (4) (2) -
Benefit of deferred revenue
adjustment - - - (12) -
Communications Adjusted
EBITDA on a Normalized Basis $210 $240 $201 $239 $257
Communications revenue on a
Normalized Basis $1,033 $1,073 $1,057 $1,054 $1,054
Communications Adjusted EBITDA
% on a Normalized Basis 20.3% 22.4% 19.0% 22.7% 24.4%
Management believes that Consolidated Adjusted EBITDA and Communications Adjusted EBITDA Margin are relevant and useful metrics to provide to investors, as they are an important part of the Company's internal reporting and are key measures used by Management to evaluate profitability and operating performance of the Company and to make resource allocation decisions. Management believes such measures are especially important in a capital-intensive industry such as telecommunications. Management also uses Consolidated Adjusted EBITDA and Communications Adjusted EBITDA Margin to compare the Company's performance to that of its competitors and to eliminate certain non-cash and non-operating items in order to consistently measure from period to period its ability to fund capital expenditures, fund growth, service debt and determine bonuses. Consolidated Adjusted EBITDA excludes non-cash impairment charges and non-cash stock compensation expense because of the non-cash nature of these items. Consolidated Adjusted EBITDA also excludes interest income, interest expense and income taxes because these items are associated with the Company's capitalization and tax structures. Consolidated Adjusted EBITDA also excludes depreciation and amortization expense because these non-cash expenses reflect the impact of capital investments which management believes should be evaluated through consolidated free cash flow. Consolidated Adjusted EBITDA excludes the gain on sale of business group, gain on extinguishment of debt and other, net because these items are not related to the primary operations of the Company.
There are limitations to using non-GAAP financial measures, including the difficulty associated with comparing companies that use similar performance measures whose calculations may differ from the Company's calculations. Additionally, this financial measure does not include certain significant items such as interest income, interest expense, income taxes, depreciation and amortization, non-cash impairment charges, non-cash stock compensation expense, the gain on sale of business group, gain on extinguishment of debt and net other income/(expense). Consolidated Adjusted EBITDA and Communications Adjusted EBITDA Margin should not be considered a substitute for other measures of financial performance reported in accordance with GAAP.
In addition to the factors described above, management believes that all non-GAAP metrics presented on a Normalized Basis are useful profitability and/or operating performance metrics for management and investors to exclude the effect of non-recurring items.
Projected Consolidated Adjusted EBITDA Consolidated
Twelve Months Ended December 31, 2008 Range
($ in millions) Low High
Net Income(Loss) $(530) $(490)
Other (Income) Expense $470 $450
Depreciation and Amortization Expense $945 $935
Non-Cash Stock Compensation Expense $95 $105
Consolidated Adjusted EBITDA $980 $1,000
Unlevered Cash Flow is defined as net cash provided by (used in) operating activities less capital expenditures, plus cash interest paid and less interest income all as disclosed in the Condensed Consolidated Statements of Cash Flows or the Condensed Consolidated Statements of Operations. Management believes that Unlevered Cash Flow is a relevant metric to provide to investors, as it is an indicator of the operational strength and performance of the Company and, measured over time, provides management and investors with a sense of the growth pattern of the business.
There are material limitations to using Unlevered Cash Flow to measure the Company against some of its competitors as it excludes certain material items such as cash used for acquisitions, proceeds from the sale of a business group, payments on and repurchases of long-term debt, capital expenditures and interest expense. Level 3 does not currently pay a significant amount of income taxes due to net operating losses, and therefore, generates higher cash flow than a comparable business that does pay income taxes. Additionally, this financial measure is subject to variability quarter over quarter as a result of the timing of payments related to accounts receivable and accounts payable and capital expenditures. Unlevered Cash Flow should not be used as a substitute for net change in cash and cash equivalents on the Condensed Consolidated Statements of Cash Flows.
Consolidated Free Cash Flow is defined as net cash provided by (used in) operating activities less capital expenditures as disclosed in the Condensed Consolidated Statements of Cash Flows. Management believes that Consolidated Free Cash Flow is a relevant metric to provide to investors, as it is an indicator of the Company's ability to generate cash to service its debt. Consolidated Free Cash Flow excludes cash used for acquisitions and principal repayments.
There are material limitations to using Consolidated Free Cash Flow to measure the Company against some of its competitors as Level 3 does not currently pay a significant amount of income taxes due to net operating losses, and therefore, generates higher cash flow than a comparable business that does pay income taxes. Additionally, this financial measure is subject to variability quarter over quarter as a result of the timing of payments related to accounts receivable and accounts payable and capital expenditures. This financial measure should not be used as a substitute for net change in cash and cash equivalents on the Condensed Consolidated Statements of Cash Flows.
Unlevered Cash Flow and Consolidated Free
Cash Flow Unlevered Cash Consolidated
Three Months Ended September 30, 2008 Flow Free Cash Flow
($ in millions)
Net Cash Provided by Operating Activities $119 $119
Capital Expenditures ($123) ($123)
Cash Interest Paid $132 N/A
Interest Income ($4) N/A
Total $124 ($4)
Unlevered Cash Flow and Consolidated Free
Cash Flow Unlevered Cash Consolidated
Three Months Ended June 30, 2008 Flow Free Cash Flow
($ in millions)
Net Cash Provided by Operating Activities $110 $110
Capital Expenditures ($106) ($106)
Cash Interest Paid $125 N/A
Interest Income ($3) N/A
Total $126 $4
Unlevered Cash Flow and Consolidated Free
Cash Flow Unlevered Cash Consolidated
Three Months Ended September 30, 2007 Flow Free Cash Flow
($ in millions)
Net Cash Provided by Operating Activities $101 $101
Capital Expenditures ($155) ($155)
Cash Interest Paid $142 N/A
Interest Income ($12) N/A
Total $76 ($54)
LEVEL 3 COMMUNICATIONS, INC. AND SUBSIDIARIES
Condensed Consolidated Statements of Operations
(unaudited)
Three Months Ended
September 30, June 30, September 30,
(dollars in millions, except per 2008 2008 2007
share data)
Revenue:
Communications $1,054 $1,072 $1,043
Other 16 18 18
Total Revenue 1,070 1,090 1,061
Costs and Expenses (exclusive of
depreciation and amortization shown
separately below):
Cost of Revenue
Communications 425 442 438
Other 19 18 16
Total Cost of Revenue 444 460 454
Depreciation and Amortization 233 234 249
Selling, General and Administrative,
including non-cash compensation of
$18, $20 and $24, respectively 387 395 415
Restructuring Charges 2 4 1
Total Costs and Expenses 1,066 1,093 1,119
Operating Income (Loss) 4 (3) (58)
Other Income (Expense):
Interest Income 4 3 12
Interest Expense (133) (132) (138)
Gain on Sale of Business Group - 96 -
Gain on Extinguishment of Debt 3 - -
Other, net 2 4 6
Total Other Income (Expense) (124) (29) (120)
Loss Before Income Taxes (120) (32) (178)
Income Tax (Expense) Benefit - (1) 4
Net Loss $(120) $(33) $(174)
Loss per Share (Basic and Diluted) $(0.08) $(0.02) $(0.11)
Weighted Average Shares Outstanding
(in thousands):
Basic and Diluted 1,558,719 1,552,778 1,534,029
LEVEL 3 COMMUNICATIONS, INC. AND SUBSIDIARIES
Condensed Consolidated Balance Sheets
(unaudited)
September 30, June 30, December 31,
(dollars in millions) 2008 2008 2007
Assets
Current Assets:
Cash and cash equivalents $582 $661 $714
Marketable securities 5 5 9
Restricted securities 3 5 10
Accounts receivable, less allowances
of $18, $20 and $20, respectively 430 427 404
Other 114 119 88
Total Current Assets 1,134 1,217 1,225
Property, Plant and Equipment, net 6,354 6,507 6,669
Restricted Securities 124 119 117
Goodwill and Other Intangibles, net 2,002 2,031 2,101
Other Assets, net 119 125 142
Total Assets $9,733 $9,999 $10,254
Liabilities and Stockholders' Equity
Current Liabilities:
Accounts payable $316 $323 $396
Current portion of long-term debt 328 6 32
Accrued payroll and employee benefits 89 85 97
Accrued interest 115 118 128
Current portion of deferred revenue 173 178 175
Other 121 126 144
Total Current Liabilities 1,142 836 972
Long-Term Debt, less current portion 6,435 6,829 6,832
Deferred Revenue, less current portion 737 754 763
Other Liabilities 616 612 617
Stockholders' Equity 803 968 1,070
Total Liabilities and Stockholders'
Equity $9,733 $9,999 $10,254
LEVEL 3 COMMUNICATIONS, INC. AND SUBSIDIARIES
Condensed Consolidated Statements of Cash Flows
(unaudited)
Three Months Ended
September 30, June 30, September 30,
(dollars in millions) 2008 2008 2007
Cash Flows from Operating Activities:
Net loss $(120) $(33) $(174)
Adjustments to reconcile net loss to
net cash provided by operating
activities:
Depreciation and amortization 233 234 249
Gain on sale of business group - (96) -
Gain on extinguishment of debt (3) - -
Non-cash compensation expense
attributable to stock awards 18 20 24
Amortization of debt issuance costs 4 4 3
Accreted interest on discount debt - - 6
Accrued interest on long-term debt (3) 3 (13)
Changes in working capital items
net of amounts acquired:
Receivables (7) (2) 20
Other current assets 6 (10) 25
Payables (2) (25) (3)
Deferred revenue (14) 7 (17)
Other current liabilities 3 10 (15)
Other, net 4 (2) (4)
Net Cash Provided by Operating
Activities 119 110 101
Cash Flows from Investing Activities:
Capital expenditures (123) (106) (155)
Proceeds from sale of property, plant
and equipment and other assets 1 - 2
Proceeds from sale of business
group, net (2) 123 -
(Increase) decrease in restricted
cash and securities, net (4) 2 2
Acquisitions, net of cash acquired - - (46)
Other 2 - -
Net Cash Provided by (Used in) Investing
Activities (126) 19 (197)
Cash Flows from Financing Activities:
Long term debt borrowings, net of
issuance costs - - (3)
Payments on and repurchases of
long-term debt and other (70) (2) (1)
Proceeds from warrants and
stock-based equity plans - - 2
Other 2 - -
Net Cash Used in Financing Activities (68) (2) (2)
Effect of Exchange Rates on Cash and
Cash Equivalents (4) 1 1
Net Change in Cash and Cash Equivalents (79) 128 (97)
Cash and Cash Equivalents at
Beginning of Period 661 533 739
Cash and Cash Equivalents at End of
Period $582 $661 $642
Supplemental Disclosure of Cash Flow
Information:
Cash interest paid $132 $125 $142
Total Cash and Marketable Securities $587 $666 $697
SOURCE Level 3 Communications, Inc.
----------------------------------------------
Media
Debra Havins
+1-720-888-7466
or Jeff Battcher
+1-720-888-3288
or Investors
Robin Grey
+1-720-888-2518
or Valerie Finberg
+1-720-888-2501
all of Level 3 Communications
Inc.
His entire purchase amazed me.
If you hadn't been selling shares to pay your light bills this never would have happened. JK ;)
IF they actually do get the STOP off pinksheets, and if they don't dilute or RS while doing so, there could still be some kind of move here. Interesting how, with only HDSN left on the bid, the ask remains at 2 x .0003 (so far)
Really? Like it was old news or something? Or like it is expected to happen? If that guy unloads there will be some 'cheep cheep' shares to be had.
I remember thinking about .40 but don't recall mentioning it in my post. That is the high from the day before it gapped up to open at .46
9.23M shares traded at .0001 today - and it nearly killed the bid completely.
1@ .0001 x 2@ .0003
--------- 2@ .0004
--------- 1@ .0005
The grace period the chart had since 10/15 is now over. No PR, no pinksheets update, no positive price movement. No bid is next if they don't give people a reason to wack .0003s.
At this point I do not see .33 as anything other than a shimmer of something worth waiting for. Something to prevent me from buying in the .90s.
But some time in the future... however slim, the possibility does exist.
If .91 falls it looks like .80 should be next. I'd have to see how it reacts to each of those before looking lower.
If everything else stayed more or less the same, I would buy myself broke at the .25 - .33 levels - if I didn't spend it all on the trip down.
PPS below trendline support and has been below the MA8 for over a week. Plenty of volume this morning so far too.
PSAR turned against PPS 2 days ago.
Bottom bollie = .7615
RSI shows room below
Open gap to fill that could bring it down as low as .33 - .40
On October 20, 2008, Tracinda sold 7.3 million shares of Ford common stock in the open market for an average sales price of $2.43 per share (from the SC13)
also
Tracinda to Focus on Gaming & Hospitality and Oil & Gas Industries and Reduce Ford Holdings
Oct 21, 2008 8:17:00 AM
Copyright Business Wire 2008
LOS ANGELES--(BUSINESS WIRE)--
Tracinda Corporation today announced that in light of current economic and market conditions, it sees unique value in the gaming and hospitality and oil and gas industries and has, therefore, decided to reallocate its resources and to focus on those industries.
Accordingly, Tracinda stated that on October 20, 2008, it sold 7.3 million shares of the common stock of Ford Motor Company (NYSE: F) in the open market for an average price of $2.43 per share, before commissions. Tracinda also stated that it intends to further reduce its holdings of Ford common stock, including the possible sale of all of its remaining 133,500,000 shares (approximately 6.09% of the outstanding shares), depending upon market conditions and available sales prices, and that it has contacted an investment banking firm regarding the possible sale of such shares.
Source: Tracinda Corporation
----------------------------------------------
Abernathy MacGregor Group
Winnie Lerner / Tom Johnson
212-371-5999
Unless some stellar news hits, I can't see this breaking out until pinksheets is updated.
Retailers can only trade to 4 decimals.
.1234
AFAIK, MMs can trade to 5 decimals.
.12345
I do the same thing. Its the bottom feeders dilemma. Missed it by .03 here yesterday. And thought to change it $2.07 (which woulda been been off by .05 from my order) but decided against it.
HaW! Oh well. I'm sure it won't be the only time F will rally :)
GLTY
If you're not living on the edge, your taking up too much space.
$30 dropped both .0002s off the bid.
woops, one is back..
1@ .0002 x 2@ .0003
6@ .0001 x 2@ .0004
If you're not living on the edge, your taking up too much space.