IPO Company Profile
Current Quote | News | SEC Filings | Peer IPO Companies
Hyperion Telecommunications, Inc.
Main St. Water Street, Coudersport, PA 16915 * (814) 274-9830

The company is a leading facilities-based provider of local telecommunications services with state-of-the-art fiber optic networks located in regionally clustered markets primarily within the eastern half of the United States.

Primary Underwriting Group
ManagerTierPhone
Salomon Smith BarneyLead Manager (212) 723-7300
CS First BostonCo-manager (212) 325-2000
Nationsbanc Montgomery Securities, Inc.Co-manager (415) 627-2100

Offering Information
NASNTL:HYPT Service: SIC 4813
Type of Shares:Class A Common Shares Filing Date:3/18/98
U.S. Shares:12,500,000 Offer Date:5/4/98
Non-U.S. Shares:0 Filing Range:$14.00 - $16.00
Primary Shares:12,500,000 Offer Price:$16.00
Secondary Shares:0 Gross Spread:$1.00
Offering Amount: $187,500,000 Selling:$0.60
Expenses: - Reallowance:$0.10
Post-IPO Shares: -
Spin out parent firm: Adelphia Communications Corporation
Employees:321

Legal Counsel, Auditor and Registrar
Issuer's Law Firm: Buchanan Ingersoll
Bank's Law Firm: Latham & Watkins
Registrar/Transfer Agent: American Stock Transfer & Trust Co
Auditor: Deloitte & Touche

Selected Financial Data

Dollar amounts in U.S. millions except for per share data
9 Month Ending Financials
Full Year
Audited
Income
Latest
Unaudited
Income
Prior
Unaudited
Income
Balance
Sheet
3/31/97 12/31/97 12/31/96 12/31/97
Revenue:$5.09$8.69$3.61Assets:$634.85
Net Income:-$30.55-$55.76-$19.05Curr Assets:$335.41
EPS:-$0.72-$1.30-$0.45Liabilities:$741.03
Prior EPS:-$0.34-$1.61-$2.59Curr Liab:$18.36
Cash Flow/Oper:-$4.82$446.65$130.74Equity:-$106.18
Cash Flow/Fin:$137.46-$171.99-$31.77Cash:$332.86
Cash Flow/Inv:-$72.82Working Cap:$317.05

Competition
In each of the markets served by the Company's networks, the services offered by the Company compete principally with the services offered by the incumbent LEC serving that area. Incumbent LECs have long-standing relationships with their customers, have the potential to subsidize competitive services from monopoly service revenues, and benefit from favorable state and federal regulations. In light of the passage of the Telecommunications Act of 1996 (the "Telecommunications Act"), federal and state regulatory initiatives will provide increased business opportunities to CLECs such as the Company, but regulators are likely to provide incumbent LECs with increased pricing flexibility for their services as competition increases. If incumbent LECs are allowed by regulators to lower their rates substantially or selectively engage in excessive volume and term discount pricing practices for their customers or charge CLECs excessive fees for interconnection to the incumbent LECs' networks, the net income and cash flow of CLECs, including the Operating Companies, could be materially and adversely affected.

Business Plan
The principal elements of the Company's growth strategy include the following: (I) Focus on Telecommunications-Intensive Customers, (ii) Increase Size and Scope of Network Clusters, (iii) Maximize On-Net Traffic Through Facilities-Based Services, (iv) Provide Bundled Package of Telecommunications Services and (v) Expand Solutions-Oriented Sales Effort.

Use of Proceeds
The proceeds from the proposed offering will be used to fund the company's capital expenditures, working capital requirements, potential increases in ownership interests in existing networks and for general corporate purposes.

©1998 IPO Data Systems, Inc. - All rights reserved.