Monday March 9, 7:38 am Eastern Time
FULL TEXT - Qwest , LCI merger detailed
Qwest Communications
LCI International
Merger Fact Sheet
Creates fourth largest long-distance company, as measured by revenues, assuming Worldcom and MCI merger is
consummated. Combined market capitalization exceeds $11 billion, at March 6th trading prices. More fully utilizes Qwest's
16,000 mile Macro Capacity SM fiber network. Combined employee base will be approximately 5,800 (1,800 Qwest and
4,000 LCI). Combined customer base will be approximately 2.3 million. Combines the industry's most seasoned and
entrepreneurial management teams. The combined companies will operate in over 70 U.S. locations (10 Qwest, 60+ LCI),
including major operations in Denver, Colorado, Northern Virginia, Columbus, Ohio and San Antonio, Texas Qwest's
headquarters will remain in Denver, CO. Operating synergies will be significant in all areas of operations.
Revenues
Network Facility Costs
Sales and Marketing
Network Engineering and Operations
Information Technology
Other Administration and Corporate
Total cost synergies for the first full year post-combination are estimated to exceed $300 million and exceed $1 billion for 1998
through 2001. Capital expenditure synergies are estimated to be approximately $80 million in 1999 and exceed $285 million for
1998 through 2001. Presentation includes forward-looking statements. Actual results may vary. Key 1997 Operating Data:
Qwest LCI
Combined Revenues
Communications services $115.3 $1,642.0 $1,757.3
Construction services $581.4 $0.0 $581.4
Total Revenues $696.7 $1,642.0 $2,338.7
Revenue Growth ('97 v. '96) 202% 26%
Ebitda(a) $115.2 $194.0 $309.2
Ebitda Growth(a)
('97 v. '96) 507% 29%
(a) Adjusted for Qwest
Growth Shares
Net Income(b) $14.5 $97.0 $111.5
Net Income Growth(b)
('97 v. '96) 308% 30%
(b) Adjusted for LCI
non-recurring charges
Total Assets $1,390.0 $1,354.0 $2,744.0
Minutes of Use 669.2 12,903.0 13,572.2
Minutes of Use Growth
('97 v. '96) 75% 35%
Post Acquisition Stock Ownership: 36.4% LCI pro forma ownership of combined entity based on March 6, 1998 closing stock
price. |
