San Diego Business Journal

Leap Wireless Postpones Shareholder Meeting, to Amend Reports Before Voting on Sale

Thursday, October 24, 2013

Leap Wireless International Inc., the San Diego flat rate carrier doing business under the Cricket brand, adjourned its special shareholders meeting scheduled for Oct. 24 in Denver to Oct. 30 postponing the meeting, to vote on its pending sale to AT&T, to Oct. 30.

Leap said the adjournment is intended to allow the company time to file amendments to its 10-K annual report for 2012 and the quarterly reports for March 31 and June 30 of this year, “to address a classification error in the presentation of certain capital expenditures in the consolidated statements of cash flows.”

In July, Leap agreed to be acquired by AT&T for $15 per share or an aggregate $4 billion including Leap’s outstanding debt of $2.8 billion.

In conjunction with these accounting adjustments, Leap said it rescheduled the release of its third quarter financial results from the previously announced date to Nov. 8 before the market opens.

Leap said it intends to release those results via press release and will not hold an earnings conference call with stock analysts.

As of June 30, the end of Leap’s fiscal 2013 second quarter, it reported a net loss of $266 million on revenue of $1.51 billion for the first six months, compared with a net loss of $140 million on revenue of $1.6 billion for the like first half of 2012 fiscal year.

When the transaction with AT&T was announced July 12, Leap said shareholders owning 29.8 percent of the shares outstanding, owned by Chairman Mark Rachesky, were in favor of the sale.

Leap, which was spun off from Qualcomm Inc. in 1998, gave no reason for the location of the special shareholders meeting being held in Denver.

— Mike Allen