| Electric Lightwave, Inc. | |||
| Ticker: | ELIX | 8100 N.E. Parkway Drive, Suite 150 | |
| Exchange: | NASDAQ-National Market | Vancouver, WA 98662 | |
| Industry: | Transportation (SIC Code 4822) | (360) 892-1000 | |
| # of Employees: | 486 | ||
| Type of Shares: | Class A Common Shares | Filing Date: | 9/9/97 | |
| U.S. Shares: | 8,000,000 | Offer Date: | 11/24/97 | |
| Non-U.S. Shares: | 0 | Filing Range: | $16.00 - $19.00 | |
| Primary Shares: | 8,000,000 | Offer Price: | $16.00 | |
| Secondary Shares: | 0 | Gross Spread: | $0.96 | |
| Offering Amount: | $140,000,000 | Selling: | $0.55 | |
| Expenses: | - | Reallowance: | $0.10 | |
| Shares Out After: | - | |||
| Spin out parent firm: | Citizens Utilities Company | |||
| Manager | Tier | Phone |
| Lehman Brothers Incorporated | Lead Manager | (212) 526-8100 |
| Merrill Lynch & Co. | Co-manager | (212) 449-4600 |
| Morgan Stanley Dean Witter Discover & Co. | Co-manager | (212) 761-5900 |
| Issuer's Law Firm: | Winthrop, Stimson, Putnam & Roberts |
| Bank's Law Firm: | Simpson, Thacher & Bartlett |
| Auditor: | KPMG Peat Marwick |
| Registrar/Transfer Agent: | Illinois Stock Transfer Company |
Dollar amounts in U.S. millions except for per share data | |||||
| 6 Month Ending Financials | |||||
| Full Year Audited Income | Latest Unaudited Income | Prior Unaudited Income | Balance Sheet | ||
| 12/31/96 | 6/30/97 | 6/30/96 | 6/30/97 | ||
| Revenue: | $31.31 | $24.77 | $13.37 | Assets: | $233.84 |
| Net Income: | -$29.38 | -$20.12 | $10.62 | Curr Assets: | $9.04 |
| EPS: | Liabilities: | $244.67 | |||
| Prior EPS: | -$4.78 | -$23.45 | Curr Liabilities: | $28.90 | |
| Cash Flow/Oper: | -$28.89 | $38.87 | $41.96 | Equity: | -$10.83 |
| Cash Flow/Fin: | $88.53 | -$33.59 | -$18.40 | Cash: | $1.11 |
| Cash Flow/Inv: | -$59.17 | -$33.59 | Working Cap: | -$19.86 | |
| Business Description |
| The company is a full service, facilities based competitive local exchange carrier providing a broad range of telecommunications services in five major market clusters in the Western United States. The Company provides state-of-the-art voice and data communications services to retail customers, primarily large-and medium-sized communications-intensive businesses, and wholesale customers, primarily telecommunications service providers. The Company operates high-quality, extensive digital fiber optic networks based on a switched broadband platform in each of its five market clusters (comprising six metropolitan statistical areas ("MSAs"), including 59 municipalities) with 31,060 local access line equivalents, 1,728 route miles and 104,718 fiber miles installed and 521 buildings connected as of June 30, 1997. The Company has interconnected its market clusters with facilities-based owned and leased long-haul fiber optic networks. The Company generated revenues of $31 million during 1996 and $57 million on an annualized basis in 1997 based on revenues for the quarter ended June 30, 1997. The Company currently provides services in five markets: Portland, Oregon; Seattle, Washington; Salt Lake City, Utah; Sacramento, California; and Phoenix, Arizona ("hub cities") and their respective surrounding areas (together with the hub cities, "market clusters" or "clusters"). The Company's clusters include an extensive fiber optic network. |
| Competition |
| Potential and actual new market entrants in the local telecommunications services business include RBOCs entering new geographic markets, IXCs, cable television companies, electric utilities, international carriers, satellite carriers, teleports, microwave carriers, wireless telephone system operators and private networks built by large end users, many of which may have financial, personnel and other resources substantially greater than those of ELI. In addition, the current trend of business combinations and alliances in the telecommunications industry, including mergers between RBOCs, may increase competition for the Company. With the passage of the 1996 Act and the entry of RBOCs into the long distance market, the Company believes that IXCs may be motivated to construct their own local facilities or otherwise acquire the right to use local facilities and/or resell the local services of the Company's competitors. |
| Business Plan |
| Guided by the business strategy adopted in 1990, the company has become a leading facilities-based, full-service CLEC. The key elements of this strategy include: (I) Target Attractive Regional Markets, (ii) Develop Market Clusters, (iii) Interconnect Market Clusters, (iv) Penetrate Markets by Leveraging Frame Relay Network, (iv) Maximize On-Net Traffic By Providing Facilities-Based Services, (v) Establish Strategic Relationships With Utility Companies and (vi) Continue Its Effective Direct Sales and Superior Customer Service. |
| Use of Proceeds |
| The proceeds from the proposed offering will be used to fund operating and capital expenditure requirements. |
| Officer Name | Title | Age |
| Daryl A. Ferguson | Chairman of the Board | 58 |
| David B. Sharkey | President, Chief Executive Officer and Director | 47 |
| Nicholas L. Ioli | Vice President and Chief Information Officer | 53 |
| Livingston E. Ross | Vice President and Controller | 47 |
| L. Russell Mitten | Vice President and General Counsel | 46 |
| Robert J. DeSantis | Vice President, Chief Financial Officer, Treasurer and Director | 41 |
| Joseph Hommel | Vice President--Business Development and General Counsel | 44 |
| Todd Hanson | Vice President--Engineering | 36 |
| Susan McAdams | Vice President--Government Affairs | 49 |
| James D. Ranton | Vice President--Human Resources | 42 |
| James Berthot | Vice President--Marketing and Product Development | 52 |
| Ernest D. Yates | Vice President--Operations | 52 |
| Michael J. Miller | Vice President--Planning | 41 |
| John Wolff | Vice President--Sales | 51 |
| Randall Lis | Vice President--Staff Operations | 38 |