LodgeNet Entertainment Corp., a provider of in-room interactive-television
services to the hotel industry, said it will accelerate its target date for
attaining free cash flow to the third quarter of this year.
Chief financial officer Gary Ritondaro, speaking at the Morgan Stanley Global
Communications Conference in Miami, said LodgeNet will take a two-pronged
approach to achieving free cash flow next year -- increasing its required hurdle
rates for room-based capital expenditures and moderating their level to reduce
its reliance on external debt financing.
Free cash flow is earnings once capital expenditures and interest payments
'Once we reach net free cash flow, it is our intent to continue to grow our
company on a self-funded basis without reliance on additional debt financing,'
president and CEO Scott Petersen said in a statement.
LodgeNet also reiterated its third-quarter guidance of revenue of between $62
million and $65 million and cash flow of between $21.5 million and $23
LodgeNet plans to add 65,000 net guest pay interactive rooms to its base this
year and approximately 60,000 during 2003.
In addition, the company expects to continue to deleverage its balance sheet
during 2003 and to be in a position to pay down debt in 2004.
LodgeNet stock fell 4 cents each to $9.76 per share Tuesday.