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…A GROWTH COMPANY

…A GROWTH COMPANY. Safe Harbor.

josiah-ward
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…A GROWTH COMPANY

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  1. …A GROWTH COMPANY

  2. Safe Harbor The statements in this presentation are “forward looking statements” within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. Such statements are based on current expectations, are not strictly historical statements, and may differ materially from actual results. Forward looking statements include without limitation, those regarding management's plans, goals, expectations, guidance, objectives, strategy, and timing for future operations and products such as roll-out of our network or data centers, product plans and performance, predictions or expectations of future growth, management's assessment of market factors, the availability of financing and future financial performance. Among factors that could cause actual results to differ materially are changes in business conditions; changes in the telecommunications or Internet industry or the general economy or capital markets; DSL, Internet and telecom competition; changes in service offerings or business strategies; inability to lease space for data centers at commercially reasonable rates; difficulty in provisioning Voice over IP services; changes in the regulatory schemes and regulatory enforcement in the markets in which we operate; restrictions on our ability to follow certain strategies or complete certain transactions as a result of our capital structure or debt covenants; the possible inability to raise capital when needed, or at all; the inability to reduce debt significantly; risks associated with PRIMUS's limited DSL, Internet and web-hosting experience and expertise, entry into developing markets, the possible inability to hire and/or retain qualified sales, technical and other personnel, particularly as we continue to attempt to grow our data-centric services, and managing rapid growth; and risks associated with international operations (including foreign currency translation risks); dependence on effective information systems; dependence on third parties to enable us to expand and manage our global network and operations; and dependence on the implementation and performance of PRIMUS's global ATM+IP communications network. These factors are discussed more fully in PRIMUS's public filings, including its most recent 10Q and 10K filings with the Securities and Exchange Commission. Readers are cautioned not to place undue reliance on these forward-looking statements which speak only as of the date these statements were made. PRIMUS disclaims any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.

  3. Our Business Integrated Service Provider of bundled voice, data and Internet services to business and residential retail customers in North America, Western Europe and select Asia-Pacific countries utilizing our world-class broadband global network

  4. $1.02 billion 34.7% $101 million 3,000,000 Customers Track Record of Execution 1996 Initial Public Offering 1995 First Year of Operation Q103* 2002 $1.2 billion Net Revenue $1.2 million $173 million 36.8% Gross Margin (18.6%) 8.2% $131 million EBITDA ($2.2 million) ($6.0 million) 3,500,000 Customers Retail Customers 4,000 Customers 50,000 Customers * Annualized based on Q103 results.

  5. Building Critical Scale and Scope in Key Developed Markets * Annualized based on Q103 results.

  6. Satellite Link The PRIMUS Global Network is Fully Deployed Copenhagen London Frankfurt Amsterdam Vancouver Toronto Zurich Paris Boston Milan Tokyo Jersey City New York Madrid Chicago Barcelona Sunnyvale Washington, DC Atlanta Dallas Los Angeles Ft. Lauderdale New Delhi Puerto Rico Brasilia Rio de Janeiro Brisbane Perth Sao Paulo Adelaide Sydney

  7. Global Diversification Reduces Business Risk Revenue by Geographic Region in 1Q03

  8. PRIMUS Customer Base is Diversified Revenue by Customer Segment in 1Q03

  9. Voice Services LD and Local VoIP Internet Connectivity ATM VPN Frame Relay Datacenter Services Mobile PRIMUS Offers a Full Suite of Services

  10. Financial Overview Profitable Growth Continues ($ MM) Year Ended 19992000200120021Q03* Net Revenue $833 $1,199 $1,082 $1,024 $1,200 Gross Margin** 25.0% 28.2% 29.1% 34.7% 36.8% EBITDA $8.6 $7.8 $11.6 $101.3 $131.2 * Annualized run rate. ** After bad debt.

  11. PRIMUS Has Executed On Its Three-Pronged Strategy • EBITDA Growth • Debt Reduction • Enhanced Liquidity Through Access to Public Capital Markets (Domestic and International)

  12. EBITDA Generation Has Been Accelerated • EBITDA positive on an annual basis for past 4 years • $131MM EBITDA run rate based on 1Q03 results • 2003 Goal to Increase EBITDA in Excess of 35% Over Prior Year * 4Q01 Actual, including $9MM in one-time credits.

  13. Total Debt Reduced by Nearly 60% Quarterly Interest Expense Reduced by 57% $ millions $ millions *Includes April 2003 Debt Repurchase/Reduction

  14. Primus Has Taken Steps to Enhance Its Liquidity • $42MM of Convertible Preferred Stock issued to an AIG-led investor group • $45MM of debt financing secured • Current cash position of $87MM (restricted and unrestricted) at end of 1Q03

  15. Leverage and Coverage Ratios Are Significantly Stronger Interest Coverage Ratio Net Debt to EBITDA * Total Debt adjusted for April debt reductions ** Total Debt divided by Annualized EBITDA

  16. PRIMUS is a Growth Company • 2003 Revenues expected to grow 20%-25% over 2002 • Revenue and EBITDA have grown in each of the last 4 quarters • EBITDA expected to grow 35% in 2003 • Net Income will grow faster (on a percentage basis) than EBITDA

  17. Expanding Gross Margins Despite Global Pricing Pressures PRIMUS Gross Margin Percentage * PRIMUS Average Price Per Minute 2003 2002 2001 2000 1999 *After bad debt. **Q401 GM% excludes one-time gain.

  18. PRIMUS is Profitable and Generating Cash Q103 EBITDA $33MM Income from Operations $12MM EPS $0.13 Free Cash Flow Positive * $15MM * After Interest, Taxes and Capital Expenditures

  19. The Market Value of our Securities Reflects Increasing Investor Confidence Stock Price (in US $) Bond Price (in US $)

  20. …And There is Upside Potential Future EPS Drivers: • Revenue Growth • Organic and accretive acquisitions • Higher mix of high margin data/Internet services • Further cost and debt reduction programs • Declining depreciation and amortization • Opportunistic refinancing to lower interest expense

  21. …A GROWTH COMPANY

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