Question-and-Answer Session
(Operator Instructions) And you first question will come from the line of Rick Prentiss from Raymond James.
Rick Prentiss - Raymond James
Thanks. Good morning, guys.
Braxton Carter
Good morning Rick
Rick Prentiss - Raymond James
Couple of questions for you. First, on your reaffirmation of the '08 guidance of EBITDA from $750 million to $850 million with a burn of $125 million to $175 million. Can you update us a little bit about how the burn is coming along? Philly looks like it was a good launch, but obviously it takes probably what, a few quarters to turn EBITDA positive? So just maybe an update as far as how that looks on '08 actual from the burn?
Braxton Carter
Yes, sure. First of all, our markets typically reach EBITDA break-even in three to four quarters. So when you are launching new markets, you continue to have a burn for a period after the launch date. What we have disclosed when you look at our CPU metric, the impact of our expansion markets on our consolidated CPU has been over $4.00. So you can usually do the math based upon the weighted average subs in the quarter to understand the impact of the expansion markets on the consolidated metrics.
Rick Prentiss - Raymond James
Right. So looking at that $4.04, looks like north of $50 million maybe impact within the third quarter. Is that a good assumption then?
Braxton Carter
That's how the math would work out. Yes.
Rick Prentiss - Raymond James
And then as we look to your '09 guidance, should we expect a burn of a similar dollar magnitude in '09, even though you haven't explicitly said it? Or would it be dramatically less than the '08 burn that we saw?
Braxton Carter
Yes. I think directionally with the significance of the launches that are out there, we are not specifically guiding to that number. But given the significance of the launches, I think that you should be expecting more of a burn already incorporated in the guidance that we have given.
Rick Prentiss - Raymond James
Okay. Then another question, this is all one question with about 12 subparts, but the --now Boston and New York being considered 'early '09'. Previously I think it had been the first quarter for Boston, first-half for New York. Does, early imply earlier for New York then or just how should we think about early versus previous schedules?
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