| IPO Company Profile |
| SEC Filings | Peer IPO Companies |
| Pathnet, Inc. |
| 1015 31st Street, N.W., Washington, DC 20007 * (202) 625-7284 |
| The company intends to become a leading provider of high quality, low-cost, long haul telecommunications capacity to second and third tier markets throughout the U. S. primarily by upgrading existing wireless infrastructure to develop a SONETnetwork. |
| Manager | Tier | Phone |
| Morgan Stanley Dean Witter Discover & Co. | Lead Manager | (212) 761-5900 |
| Bear, Stearns & Co. Inc. | Co-manager | (212) 272-4850 |
| J.P. Morgan Securities Inc. | Co-manager | (212) 648-0517 |
| Lehman Brothers Incorporated | Co-manager | (212) 526-8100 |
| NASNTL: | PTNT | Service: | SIC 4813 | |
| Type of Shares: | Common Shares | Filing Date: | 5/8/98 | |
| U.S. Shares Filed: | 3,750,000 | Filing Range: | $15.00 - $17.00 | |
| Non-U.S. Shares Filed: | 937,500 | Offering Amount: | $75,000,000 | |
| Primary Shares: | 4,687,500 | Expenses: | $850,000 | |
| Secondary Shares: | 0 | Post-IPO Shares: | ||
| Employees: | 83 |
| Issuer's Law Firm: | Paul, Weiss, Rifkind, Wharton & Garrison |
| Bank's Law Firm: | Shearman & Sterling |
| Auditor: | Coopers & Lybrand |
Dollar amounts in U.S. millions except for per share data | |||||
| 3 Month Ending Financials | |||||
| Full Year Audited Income | Latest Unaudited Income | Prior Audited Income | Balance Sheet | ||
| 12/31/97 | 3/31/98 | 3/31/97 | 3/31/98 | ||
| Revenue: | $0.16 | $0.10 | $0.01 | Assets: | $15.27 |
| Net Income: | -$3.98 | -$2.68 | -$0.53 | Curr Assets: | $5.01 |
| EPS: | -$0.80 | -$0.54 | -$0.11 | Liabilities: | $6.83 |
| Prior EPS: | -$0.35 | Curr Liab: | $7.74 | ||
| Cash Flow/Oper: | -$3.32 | -$0.57 | -$0.59 | Equity: | $8.44 |
| Cash Flow/Fin: | $11.71 | -$0.08 | $0.00 | Cash: | $4.86 |
| Cash Flow/Inv: | -$2.88 | -$2.32 | -$0.04 | Working Cap: | -$2.72 |
| Competition |
| The telecommunications industry is highly competitive. In particular, price competition in the 'carrier's carrier' market has generally been intense and is expected to increase. The Company competes and expects to compete with numerous competitors who have substantially greater financial and technical resources, long-standing relationships with their customers and potential to subsidize competitive services from less competitive service revenues and from federal universal service subsidies. Such competitors may be operators of existing or newly deployed wireline or wireless telecommunications networks. The Company will also face intense competition due to an increased supply of telecommunications capacity, the effects of deregulation and the development of new technologies, including technologies that will increase the capacity of existing networks. The Company anticipates that prices for its 'carrier's carrier' services will continue to decline over the next several years. The Company is aware that certain long distance carriers are expanding their capacity and believes that other long distance carriers, as well as potential new entrants to the industry, are constructing new microwave, fiber optic and other long distance transmission networks in the United States. If industry capacity expansion results in capacity that exceeds overall demand along the Company's routes, severe additional pricing pressure could develop. As a result, within a few years, the Company could face dramatic and substantial price reductions. Such pricing pressure could have a material adverse effect on the business, financial condition and results of operations of the Company. |
| Business Plan |
| Key components of the Company's business and operating strategies are described below: (I) Focus on Smaller, Capcity Constrained Markets, (ii) Position the Company as a 'Carrier's Carrier', (iii) Establish Strategic Relationships with Incumbents and Other Owners of Telecommunications Assets and (iv) Build Effective Sales Forse and Provide Superior Customer Service. |
| Use of Proceeds |
| The proceeds from the proposed offering will be used for capital expenditures, working capital and other general corporate purposes including the funding of operating losses. |