| ITC Deltacom, Inc. | |||
| Ticker: | ITCD | 206 West Ninth Street | |
| Exchange: | NASDAQ-National Market | West Point, GA 31833 | |
| Industry: | Service (SIC Code 4813) | (706) 645-8990 | |
| # of Employees: | 500 | ||
| Type of Shares: | Common Shares | Filing Date: | 9/30/97 | |
| U.S. Shares: | 5,000,000 | Offer Date: | 10/23/97 | |
| Non-U.S. Shares: | 0 | Filing Range: | $14.50 - $16.50 | |
| Primary Shares: | 5,000,000 | Offer Price: | $16.50 | |
| Secondary Shares: | 0 | Gross Spread: | $1.15 | |
| Offering Amount: | $77,500,000 | Selling: | $0.70 | |
| Expenses: | - | Reallowance: | $0.10 | |
| Shares Out After: | - |
| Manager | Tier | Phone |
| Morgan Stanley Dean Witter Discover & Co. | Lead Manager | (212) 761-5900 |
| J.C. Bradford & Co. | Co-manager | (615) 748-9347 |
| Merrill Lynch & Co. | Co-manager | (212) 449-4600 |
| Wheat First Butcher & Singer Capital Markets | Co-manager | (804) 782-3278 |
| Issuer's Law Firm: | Hogan & Hartson |
| Bank's Law Firm: | Shearman & Sterling |
| Auditor: | Arthur Andersen |
Dollar amounts in U.S. millions except for per share data | |||||
| 3 Month Ending Financials | |||||
| Full Year Audited Income | Latest Unaudited Income | Prior Unaudited Income | Balance Sheet | ||
| 6/30/97 | 6/30/97 | ||||
| Revenue: | $0.00 | Assets: | $201.16 | ||
| Net Income: | -$0.64 | Curr Assets: | $195.18 | ||
| EPS: | Liabilities: | $201.65 | |||
| Prior EPS: | $1.07 | Curr Liabilities: | $1.65 | ||
| Cash Flow/Oper: | $194.11 | Equity: | -$0.49 | ||
| Cash Flow/Fin: | -$194.78 | Cash: | -$0.40 | ||
| Cash Flow/Inv: | -$194.78 | Working Cap: | $193.53 | ||
| Business Description |
| The company provides retail long distance services to mid-sized and major regional businesses in the southern U.S. and is regional provider of wholesale long-haul services to other telecommunications companies using the company's fiber optic network. The company provides Carriers' Carrier Services to other telecommunications carriers, including AT&T;, MCI, Sprint, WorldCom, Cable & Wireless, LCI, Frontier and IXC. The company's fiver optic network reaches over 60 points of presence in ten southern states and extends approximately 5, 400 route miles, of which approximately 2,500 miles are company-owned and approximately 2,900 miles are owned and operated by three public utilities and managed marketed by the company. The company expects to add approximately 700 owned and operated route miles to its fiber network by the end of 1997 through long-term dark fiber leases. The company currently provides a variety of Retail Services, including retail long distance services such as traditional switched and dedicated long distance, 800/888 calling, calling card and operator services, Asynchronous Transfer Mode, frame relay, high capacity broadband private line services, as well as Internet Intranet and Web page hosting and development services, and customer premise equipmetn installation and repair. |
| Competition |
| The telecommunications industry is highly competitive. The company competes primarily on the basis of price, availability, transmission quality, reliability, customer servicea dn variety of product offerings. The ability of the companyt oc ompete effectively will depend on its ability to maintain high quality services at prices generally equal to or below those charged by its competitors. In particular, price competition in the retail and carrier's carrier long distance markets has generally been intense and is expected to increase. Many of the company's competitors have substantially greater financial, personnel, technical, marketing and other resources, larger numbers of established customers and more prominent name recognition than the company and utilize more extensive transmission networks than the company. The company will also increasingly face competition in the long distance market from local exchange carriers, switchless resellers and satellite carriers andmay eventually compete with public utilities and cable companies. |
| Business Plan |
| The principal elements of the Company's business strategy include the following: (I) Providing Integrated Telecommunications Services to Existing Base of Mid-sized and Major Regional Business Customers, (ii) Leveraging Its Extensive Fiber Optic Network, (iii) Focusing on the Southern United States, (iv) Building Market Share through Personalized Customer Service, (v) Expanding Its Fiber Optic Network and Switching Facilities and (vi) Levearging Proven Management Team. |
| Use of Proceeds |
| The proceeds from the proposed offering will be used to fund expansion of the company's telecommunications business, including expansion of the company's fiber optic network and the opening of new sales offices, and for additional working capital and for general corporate purposes. |
| Name of Shareholder | % Owned Before | % Owned After |
| Campbell B. Lanier, III | 27.70% | |
| National Enterprises, Inc. | 10.20% | |
| SCANA Communications, Inc. | 9.10% | |
| Donald W. Burton | 6.10% |
| Officer Name | Title | Age |
| Campbell B. Lanier, III | Chairman, Director | 46 |
| Andrew M. Walker | Chief Executive Officer, Director and Chairman of the Board | 55 |
| Foster O. McDonald | President | 35 |
| Douglas A. Sumate | Senior Vice President-Chief Financial Officer | 32 |
| J. Thomas Mullis | Senior Vice president-General Counsel, Secretary | 53 |
| Steven D. Moses | Senior Vice President-Networks Services | 47 |
| Roger F. Woodward | Senior Vice President-Sales, Marketing and Customer Support | 44 |
| Sara L. Plunkett | Vice President-Finance, Treasurer | 47 |