SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
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FORM 8-K
CURRENT REPORT
PURSUANT TO SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934
Date of Report (Date of earliest event reported): February 15, 2000
QWEST COMMUNICATIONS INTERNATIONAL INC.
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(Exact name of registrant as specified in its charter)
DELAWARE
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(State or other jurisdiction of incorporation)
000-22609 84-1339282
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(Commission File Number) (IRS Employer Identification No.)
700 QWEST TOWER, 555 SEVENTEENTH STREET DENVER, COLORADO 80202
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(Address of principal executive offices) (Zip Code)
Registrant's telephone number, including area code: 303-992-1400
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NOT APPLICABLE
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(Former name or former address, if changed since last report)
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ITEM 5. OTHER EVENTS
On February 15, 2000, the Registrant announced it would provide a live webcast
of its financial analyst meeting being held in New York, New York on February
16, 2000. A copy of the press release announcing the same is attached as Exhibit
99.1 to this Current Report on Form 8-K.
On February 16, 2000, at the financial analyst meeting, the Registrant announced
the following:
o The consensus of analysts' estimates projects that the Registrant will
have revenues of approximately $5.1 billion in 2000 and $6.4 billion in
2001. The Registrant believes it is capable of attaining these
estimates.
o It expects that Internet Protocol (IP) and Data revenues would account
for 35% to 40% of total revenues by the fourth quarter of 2000, and 50%
by the fourth quarter of 2001.
o It expects revenue for its Internet and Multimedia Markets unit to
exceed $1 billion in 2000, a 300% increase over 1999.
o It expects revenue for Qwest Cyber.Solutions to exceed $160 million in
2000.
o The consensus of analysts' estimates projects that the Registrant will
have EBITDA (earnings before interest, taxes, depreciation and
amortization) of approximately $1.1 billion in 2000 and $1.5 to $1.6
billion in 2001. The Registrant believes it is capable of attaining
these estimates.
o It expects gross margins to be in the 48% to 49% range by the end of
2000.
o It expects to see a modest improvement in SG&A (selling, general and
administrative expenses) as a percentage of revenue in 2000 over its
SG&A of 26% during the fourth quarter of 1999.
o It expects capital expenditures for 2000 to be approximately $2.7
billion, with greater emphasis on expenditures related to its IP,
hosting and application service provider business and broadband local
access than in prior years. It expects capital expenditures in 2001 to
be approximately at the same levels as those for 2000.
o It is in the process of expanding its existing $1 billion credit
facility to $2 billion.
o With respect to EPS (earnings per share), the Registrant announced
that it expects that depreciation expense will increase from
approximately $250 million in 1999 to $400 to $425 million in 2000,
amortization expense will increase from approximately $150 million in
1999 to $150 to $155 million in 2000, and interest expense (net of
capitalized interest and interest income) will increase from
approximately $100 million in 1999 to $175 to $185 million in 2000. To
calculate taxes, one should add back amortization expense to income
before taxes, and use a tax rate of 40%. In addition, the Registrant
expects its diluted weighted average outstanding shares to increase from
approximately 765 million in 1999 to 800 million in 2000.
This information related to Qwest on a "stand-alone" basis. It does not
give effect to Qwest's pending merger with U S WEST, Inc. or the synergies
expected to be achieved from the merger.
In addition, on February 16, 2000, the Registrant's European affiliate,
KPNQwest N.V., announced that it expected capital expenditures for 2000 to be in
the
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800 million euro to 900 million euro range, and aggregate capital expenditures
for 1999 through 2003 to be approximately 2.44 billion, comprised of the
following components:
Amount
Item (in Euros)
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EuroRings (1-7) 1,450,000,000
Mega CyberCenters 150,000,000
Service Platform and IT 540,000,000
Transatlantic capacity 300,000,000
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Total 2,440,000,000
This Current Report on Form 8-K contains projections and other
forward-looking statements that involve risks and uncertainties. These
statements may differ materially from actual future events or results. Readers
are referred to the documents filed by Qwest with the SEC, specifically the most
recent reports which identify important risk factors that could cause actual
results to differ from those contained in the forward-looking statements,
including potential fluctuations in quarterly results, dependence on new product
development, rapid technological and market change, failure to maintain rights
of way, financial risk management and future growth subject to risks, Qwest's
ability to achieve Year 2000 compliance, adverse changes in the regulatory or
legislative environment, and failure to complete the merger with U S WEST timely
or at all. This Current Report on Form 8-K and the attachments include or
incorporate by reference analysts' estimates and other information prepared by
third parties for which Qwest assumes no responsibility. Qwest undertakes no
obligation to review or confirm analysts' expectations or estimates or to
release publicly any revisions to any forward-looking statements to reflect
events or circumstances after the date hereof or to reflect the occurrence of
unanticipated events.
ITEM 7. FINANCIAL STATEMENTS, PRO FORMA FINANCIAL INFORMATION AND EXHIBITS
Exhibit 99.1 Press release of the Registrant dated February 15, 2000.
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SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the
Registrant has duly caused this report to be signed on its behalf by the
undersigned thereunto duly authorized.
QWEST COMMUNICATIONS INTERNATIONAL INC.
DATE: February 17, 2000 By: /s/ DRAKE S. TEMPEST
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Drake S. Tempest
Executive Vice President and General Counsel
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EXHIBIT INDEX
Exhibit 99.1 Press release of the Registrant dated February 15, 2000.
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EXHIBIT 99.1
Ride the light
[Graphic logo omitted] NEWS
QWEST
QWEST COMMUNICATIONS TO WEBCAST FINANCIAL ANALYST MEETING
DENVER, FEBRUARY 15, 2000 -- Qwest Communications International Inc. (NYSE:Q),
the broadband Internet communications company, announced today it will provide a
live webcast of its financial analyst meeting being held in New York on
Wednesday, February 16 for financial analysts and institutional investors.
Interested parties may access the live audio and video webcast of the meeting,
which runs from 8:30 AM to 3:30 PM EST, from an icon on the Qwest home page at
www.qwest.com.
ABOUT QWEST
Qwest Communications International Inc. (NYSE: Q) is a leader in reliable,
scalable and secure broadband Internet-based data, voice and image
communications for businesses and consumers. The Qwest Macro Capacity(R) Fiber
Network, designed with the newest optical networking equipment for speed and
efficiency, spans more than 25,500 miles in North America. In addition, KPNQwest
(Nasdaq: KQIP), Qwest's European joint venture with KPN, the Dutch
telecommunications company, is building and will operate a high-capacity
European fiber optic, Internet-based network that will span 11,800 miles when it
is completed in 2001. For more information, please visit the Qwest web site at
www.qwest.com.
# # #
This release may contain forward-looking statements that involve risks and
uncertainties. These statements may differ materially from actual future events
or results. Readers are referred to the documents filed by Qwest with the SEC,
specifically the most recent reports which identify important risk factors that
could cause actual results to differ from those contained in the forward-looking
statements, including potential fluctuations in quarterly results, dependence on
new product development, rapid technological and market change, failure to
maintain rights of way, financial risk management and future growth subject to
risks, Qwest's ability to achieve Year 2000 compliance, adverse changes in the
regulatory or legislative environment, and failure to complete the merger with U
S WEST and achieve projected synergies and financial results timely or at all.
This release may include analysts' estimates and other information prepared by
third parties, for which Qwest assumes no responsibility. Qwest undertakes no
obligation to review or confirm analysts' expectations or estimates or to
release publicly any revisions to any forward-looking statements to reflect
events or circumstances after the date hereof or to reflect the occurrence of
unanticipated events.
The Qwest logo is a registered trademark of Qwest Communications International
Inc. in the U.S. and certain other countries
Contacts: MEDIA CONTACT: INVESTOR CONTACT:
Jane Morrissey Lee Wolfe
(303) 992-3882 800-567-7296
[email protected] [email protected]
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