<PAGE>
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, DC 20549
-----------------------------
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 28, 2000
ITC/\DELTACOM, INC.
-------------------------------------------------
(Exact Name of Registrant as Specified in Charter)
Delaware 0-23253 58-2301135
(State or Other Jurisdiction (Commission File Number) (IRS Employer
of Incorporation) Identification No.)
1791 O.G. Skinner Drive
West Point, Georgia 31833
(Address of Principal Executive Offices (ZIP Code)
Registrant's telephone number, including area code: (706) 385-8000
Not applicable
-------------------------------------------------
(Former Name or Former Address, if Changed Since Last Report)
<PAGE>
Item 5. Other Events.
On February 28, 2000, ITC/\DeltaCom, Inc. issued four press releases
relating to various aspects of its operations, financing plans and management.
Attached as Exhibits 99.1, 99.2, 99.3 and 99.4 to this Current Report on Form 8-
K are the texts of each of the February 28, 2000 press releases, which are
incorporated by reference in this Item 5.
Item 7. Financial Statements, Pro Forma Financial Information and Exhibits.
(c) Exhibits.
99.1 Press Release, dated February 28, 2000, relating to the
creation of a new company, e/\DeltaCom.
99.2 Press Release, dated February 28, 2000, relating to
ITC/\DeltaCom's receipt of a commitment for a $160 million
senior secured credit facility.
99.3 Press Release, dated February 28, 2000, relating to certain
financial and operating results of ITC/\DeltaCom for the
fourth quarter and year ended December 31, 1999.
99.4 Press Release, dated February 28, 2000, relating to the
resignation of Foster McDonald as President of ITC/\DeltaCom.
2
<PAGE>
SIGNATURE
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 hereunto duly authorized.
ITC/\DELTACOM, INC.
Date: March 1, 2000 /s/ J. Thomas Mullis
--------------------------------
J. Thomas Mullis
Senior Vice President--General
Counsel, Secretary
3
<PAGE>
Exhibit 99.1
------------
NEWS RELEASE
Financial Contact: Media Contact:
Douglas A. Shumate Moss Crosby
Senior Vice President Director of Marketing
Chief Financial Officer 256-382-3851 - phone
706-385-8189 256-382-3890 - fax
[email protected] [email protected]
- ------------------------ -----------------------
www.itcdeltacom.com
ITC/\DeltaCom to Enter Collocation and Web Hosting Business
New Company, e/\DeltaCom, Expands Southern Telecom Provider's
Internet and Data Capabilities
West Point, GA (February 28, 2000) - - ITC/\DeltaCom, Inc. (Nasdaq/NMS:
ITCD), a leading telecommunications provider in the southern United States,
announced today the creation of a new company, e/\DeltaCom. The new company will
enable ITC/\DeltaCom to extend and enhance its current data and Internet access
products, offering customers collocation and Web server hosting services
integral to operating business-critical applications over the Internet.
During the past three years, ITC/\DeltaCom has added strategic products
such as local service, and data and Internet capabilities, in addition to
developing its extensive IP backbone. e/\DeltaCom represents a logical next step
in ITC/\DeltaCom's IP strategy and a natural extension of ITC/\DeltaCom's
overall business plan. ITC/\DeltaCom expects to invest approximately $250
million during the next 36 months to fund the development of this subsidiary.
"We are very excited about the e/\DeltaCom initiative. This new line of
business enhances our current data and Internet product offerings to existing
customers, and enables the pursuit of strategic national Internet relationships
with a level and quality of service in keeping with ITC/\DeltaCom's reputation
for excellence," said Andrew M. Walker, vice chairman and chief executive
officer.
<PAGE>
e/\DeltaCom expects to leverage ITC/\DeltaCom's existing IP network assets
to increase customer options and differentiate its product offerings.
Additionally, an aggressive effort to create and secure strategic relationships
with e-commerce enabling companies is underway, so e/\DeltaCom can also
establish itself as a leading provider of dynamic, cutting-edge solutions for
customers' e-business needs.
Immediate benefits to e/\DeltaCom customers include direct integration to
ITC/\DeltaCom's OC-48 IP backbone, providing customers with the high bandwidth
necessary for maximum performance and fast, simple scalability. e/\DeltaCom will
also enjoy a host of comprehensive security features such as multiple, diverse
Internet connections; 24-hour onsite security personnel; redundant, high
capacity HVAC systems; an un-interruptible power system (UPS) on dual commercial
grids with multiple generators; and 24-hour onsite technical support services.
Managed network services, that monitor servers and routers, track Internet
traffic, perform back up and re-boot tasks and optional hot standby,
geographically diverse data center facilities will also be available for
customers requiring the utmost in performance and reliability.
The newest addition to the ITC/\DeltaCom family will be headquartered in
Atlanta, with regional data centers slated to open in Georgia, Florida and Texas
over the next eighteen months. e/\DeltaCom is currently operating from
ITC/\DeltaCom's switching and data centers in Atlanta, Georgia and Auburn,
Alabama. The initial Atlanta data center and administrative facilities are
expected to be complete by October, 2000.
ITC/\DeltaCom, headquartered in West Point, Georgia, provides integrated
telecommunication services to mid-sized and major businesses in the southern
United States, and is a leading regional provider of wholesale long-haul
services to other communications companies. ITC/\DeltaCom's business
communication services include local exchange, long distance, enhanced data,
Internet and operator services, and the sale and maintenance of customer premise
equipment. The Company operates 34 branch locations in eight states, and its
10-state, approximately 8,250-mile fiber optic network reaches over 100 points
of presence.
<PAGE>
ITC/\DeltaCom has interconnection agreements with BellSouth, GTE, Southwestern
Bell and Sprint for resale and access to unbundled network elements, and is a
certified Competitive Local Exchange Carrier (CLEC) in Arkansas, Texas, and all
nine BellSouth states.
Statements contained in this news release regarding expected financial
results and other planned events are forward-looking statements that involve
risk and uncertainties. Actual future events or results may differ materially
from these statements. Readers are referred to the documents filed by
ITC/\DeltaCom with the Securities and Exchange Commission, specifically the most
recent filings 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, risks related to future
growth and rapid expansion, and volatility of stock prices. These and other
applicable risks are summarized under the caption "Risk Factors" in the
Company's 1998 Annual Report on Form 10-K.
###
<PAGE>
Exhibit 99.2
------------
NEWS RELEASE
FOR IMMEDIATE RELEASE
Financial Contact: Media Contact:
Douglas A. Shumate Moss Crosby
Senior Vice President Director of Marketing
Chief Financial Officer 256-382-3851 - phone
706-385-8189 256-382-3890 - fax
[email protected] [email protected]
- ------------------------ -----------------------
www.itcdeltacom.com
ITC/\DELTACOM ANNOUNCES $160 MILLION COMMITMENT FOR
SENIOR SECURED CREDIT FACILITY
Financing to Fund new Initiative, e/\DeltaCom
West Point, Georgia (February 28, 2000) -- ITC/\DeltaCom, Inc. (Nasdaq/NMS:
ITCD), a leading telecommunications provider in the southern United States,
announces that Morgan Stanley Senior Funding Inc., Banc of America Securities
and Goldman Sachs Credit Partners L.P. has provided the Company a commitment to
fully underwrite a $160 million senior secured credit facility. Morgan Stanley
and Banc of America will act as Joint Lead Arrangers with Goldman Sachs as
Documentation Agent. The credit facility is subject to customary conditions for
a transaction of this type, including without limitation, completion of
definitive documentation and finalization of all terms and conditions.
This credit facility is currently expected to be syndicated and fully
funded by March 31, 2000. It will be completely drawn at closing and not
subject to financial maintenance covenants and replaces the existing $50 million
bank facility of which no funds were previously dispersed.
Andrew M. Walker, ITC/\DeltaCom vice chairman and chief executive officer,
stated, "We expect this investment to provide significant benefits for
ITC/\DeltaCom and its shareholders. We are currently reviewing additional equity
financing alternatives consistent with our conservative approach to financing."
<PAGE>
The Company will use the proceeds of the credit facility to fund the just
announced strategic initiative of e/\DeltaCom, which will be a separate business
unit. The new company will enable ITC/\DeltaCom to extend and enhance its
current data and Internet products, offering customers in the southern United
States with collocation and Web hosting services that are integral to companies
who run business-critical applications over the Internet. The proceeds will also
be used to fund current and future opportunities in the existing business lines.
"We are very excited about our e/\DeltaCom initiative and the ability to
provide additional services to our customers. This new line of business
enhances our data product offering and allows us to secure national Internet
backbone relationships and aggressively work with e-commerce enabling
companies," continued Walker.
ITC/\DeltaCom, headquartered in West Point, Georgia, provides integrated
telecommunication services to mid-sized and major businesses in the southern
United States, and is a leading regional provider of wholesale long-haul
services to other communications companies. ITC/\DeltaCom's business
communication services include local exchange, long distance, enhanced data,
Internet and operator services, and the sale and maintenance of customer premise
equipment. The Company operates 34 branch locations in eight states, and its
10-state, approximately 8,250-mile fiber optic network reaches over 100 points
of presence. ITC/\DeltaCom has interconnection agreements with BellSouth, GTE,
Southwestern Bell and Sprint for resale and access to unbundled network
elements, and is a certified Competitive Local Exchange Carrier (CLEC) in
Arkansas, Texas, and all nine BellSouth states.
Statements contained in this news release regarding expected financial
results and other planned events are forward-looking statements that involve
risk and uncertainties. Actual future events or results may differ materially
from these statements. Readers are referred to the documents filed by
ITC/\DeltaCom with the Securities and Exchange Commission, specifically the most
recent filings 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, risks related to future
growth and rapid expansion, and volatility of stock prices. These and other
risks are summarized under the caption "Risk Factors" in the Company's 1998
Annual Report on Form 10-K.
###
<PAGE>
Exhibit 99.3
------------
FOR IMMEDIATE RELEASE
Investor Contacts:
<TABLE>
<S> <C>
Douglas A. Shumate Mary A. Edwards
Senior Vice President Manager
Chief Financial Officer Investor Relations
706-385-8189 706-385-8016
[email protected] [email protected]
</TABLE>
Media Contact:
Moss Crosby
Director of Marketing
256-382-3851
[email protected]
ITC/\DELTACOM REPORTS FOURTH QUARTER
AND YEAR-END 1999 FINANCIAL RESULTS
WEST POINT, Ga. (February 28, 2000)--ITC/\DeltaCom, Inc. (Nasdaq/NMS: ITCD)
today announced results for the fourth quarter and year ended December 31, 1999.
Operating revenue was $68.6 million in the fourth quarter of 1999, a
sequential quarterly growth of 4.3% over the third quarter of 1999, and an
increase of $20.0 million, or 41.2%, compared with the fourth quarter of 1998.
The Company's consolidated gross margin improved from 52.1% in the third quarter
of 1999 to 53.1% in the fourth quarter of 1999. This improvement contributed to
EBITDA, as adjusted, of $8.2 million in the fourth quarter of 1999, compared
with EBITDA, as adjusted, of $8.1 million in the third quarter of 1999.
Operating revenue for the year ended December 31, 1999 totaled $244.8
million, an increase of 42.5% compared with $171.8 million for the year ended
December 31, 1998. EBITDA, as adjusted, for the year ended December 31, 1999 was
$29.3 million compared with $24.0 million recorded for 1998.
"The results achieved in 1999 demonstrate our ability to continue a record
of strong execution," said Douglas A. Shumate, senior vice president and chief
financial officer of ITC/\DeltaCom. "As we move into 2000 we will continue to
gain leverage from the investments that have been made to support our continued
growth as well as the intended expansion into other product lines such as
collocation and web hosting."
Carriers' Carrier segment revenue was $19.2 million in the fourth quarter
of 1999, a sequential quarterly growth of 1% over the third quarter of 1999, and
an increase of $3.8 million, or 24.7%, over the fourth quarter of 1998.
Carriers' Carrier revenue for the year ended December 31, 1999 was $72.9
million, an increase of $21.0 million, or 40.5%, over the year ended December
31, 1998.
Retail Services segment revenue was $49.4 million in the fourth quarter of
1999, a sequential quarterly growth of 5.6% over the third quarter of 1999, and
an increase of $16.2 million, or 48.8% over the fourth quarter of 1998. Retail
Services revenue for the year ended December 31, 1999 of $172.0 million
represented an increase of $52.1 million, or 43.5%, over the year ended December
31, 1998.
The Company posted significant gains in its sale of local services during
the fourth quarter of 1999. New lines sold in the quarter totaled approximately
36,400, increasing the cumulative number of lines sold to approximately
<PAGE>
128,200. The Company completed the quarter with a cumulative number of local
lines in service of approximately 101,500 lines, an increase of approximately
25,500 lines from the third quarter 1999.
Continued expansion of the Company's data network infrastructure, and
improvements in its data services product development, resulted in increased
data product sales in the fourth quarter and throughout 1999. Data product
revenues grew approximately 8.4% in the fourth quarter of 1999 compared to the
third quarter of 1999 and increased approximately 132.3% compared to the fourth
quarter of 1998.
"Our year-end goals included reaching 100,000 local lines in service,
growing our data revenue, and continuing to improve margins with increased
facility-based line growth," said Foster McDonald, president of ITC/\DeltaCom.
"The people of ITC/\DeltaCom made this happen. We are very pleased with this
strong finish to 1999."
Other current and fourth quarter 1999 highlights include the following:
. The Company opened three branch offices: Albany, Georgia, and Daytona and
Tallahassee, Florida. These openings increased the Company's market
coverage to 34 branch offices operational in 33 markets at the end of the
fourth quarter.
. The Company completed the installation of 55 additional access nodes,
raising the total number to 125 operational BellSouth collocations.
. The Company completed the installation of its Jacksonville, Florida DMS500
switch.
. The Company installed eight next generation switches to further enhance the
network infrastructure.
"We are very pleased with the progress achieved in 1999," said Andrew M.
Walker, vice chairman and chief executive officer of ITC/\DeltaCom. "We
experienced many challenges in the last six months of 1999 and still created
positive results for our customers and our shareholders. With the maturity of
our product offerings, particularly our Integrated T product, we have seen
continued success in reaching our target business customers."
ITC/\DeltaCom's achievements in 1999 include the following:
. Local lines sold more than tripled to approximately 128,200 lines.
. Markets served increased from 22 to 33.
. The number of employees increased approximately 46% to over 1,600.
. The installation of 95 local central office collocations was completed.
. Completion of a private offering of $100 million in aggregate principal
amount of its 4 1/2% Convertible Subordinated Notes.
<PAGE>
. Completion of a public offering of 6,037,500 shares of its common stock
generating net proceeds of approximately $120.9 million.
. Completion of a merger with AvData Systems, Inc. of Atlanta, Georgia bringing
data network management into the product offerings of the Company.
. Completion of the acquisition of certain assets of Scientific
Telecommunications, a privately owned telecommunications equipment provider
in Mississippi.
. Installation of an advanced IP Network utilizing OC48 ring-protected backbone
employing Packet Over Sonet (POS) technology.
In 2000, the Company intends to continue expansion of its geographic reach,
adding branch offices and expanding its network infrastructure. The Company
expects to add 8 branch offices, which will extend the Company's presence in the
South to 41 markets. ITC/\DeltaCom intends to expand its fiber optic network and
switching capacities throughout Tennessee and Texas bringing the total fiber
network to approximately 10,000 miles in 2000. The advanced IP network installed
in 1999 will continue to expand throughout the region as growth and market plans
are defined. In addition, the Company expects to add DMS500 switches in Houston,
Texas and West Palm Beach, Florida, and is also expecting to install new Nortel
Passport switches throughout the data network. In addition, throughout the year,
the Company will continue its development and deployment of a suite of IP
centric services ranging from IP bandwidth, IP VPNs, managed IP services, and
remote dial access, among others.
In conclusion, Mr. Walker stated, "1999 was a growth and maturity year for
ITC/\DeltaCom. With the addition of a key set of products, maturity of our OSS
and continued success in building our network infrastructure throughout the
year, we are prepared to deliver a full service telecom offering to the market
place positioned for the next generation of telecommunications services. We
will continue to be the leading provider in the South of the most cost efficient
and advanced services to our customers."
ITC/\DeltaCom, headquartered in West Point, Georgia, provides integrated
telecommunications services to mid-sized and major businesses in the southern
United States and is a leading regional provider of wholesale long-haul services
to other communications companies. ITC/\DeltaCom's business communication
services include local exchange service, long distance, enhanced data, Internet
and operator services, and the sale and maintenance of customer premise
equipment. The Company operates 34 branch locations in eight states and its 10-
state, approximately 8,250-mile fiber optic network, reaches over 100 points of
presence. ITC/\DeltaCom has interconnection agreements with BellSouth, GTE,
Sprint and SBC Communications for resale and access to unbundled network
elements, and is a certified Competitive Local Exchange Carrier (CLEC) in all
nine BellSouth states, Arkansas and Texas.
Statements contained in this news release regarding expected financial
results and other planned events are forward-looking statements that involve
risk and uncertainties. Actual future events or results may differ materially
from these statements. Readers are referred to the documents filed by
ITC/\DeltaCom with the Securities and Exchange Commission, specifically the most
recent filings 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, risks related to future
growth and rapid expansion, and volatility of stock prices. These and other
applicable risks are summarized under the caption "Risk Factors" in the
Company's 1998 Annual Report on Form 10-K.
<PAGE>
ITC/\DELTACOM, INC.
FINANCIAL HIGHLIGHTS
(Unaudited)
(In thousands, except share data)
<TABLE>
<CAPTION>
Three Months Ended Year Ended
December 31, December 31,
1999 1998 1999 1998
-------------- ------------- ------------ -------------
<S> <C> <C> <C> <C>
Operating revenues $ 68,623 $ 48,616 $ 244,844 $ 171,838
Cost of services 32,159 24,360 118,721 82,979
----------- ----------- ----------- -----------
Gross margin 36,464 24,256 126,123 88,859
----------- ----------- ----------- -----------
Operating expenses:
Selling, operations and administration 28,262 18,610 96,854 64,901
Depreciation and amortization 15,950 9,452 53,810 30,887
----------- ----------- ----------- -----------
Total operating expenses 44,212 28,062 150,664 95,788
----------- ----------- ----------- -----------
Operating loss (7,748) (3,806) (24,541) (6,929)
----------- ----------- ----------- -----------
Other income (expense):
Interest expense (11,892) (9,263) (45,293) (31,930)
Interest income 3,927 2,394 14,195 9,753
Other income (expense), net 209 226 754 (3,254)
----------- ----------- ----------- -----------
Total other expense, net (7,756) (6,643) (30,344) (25,431)
----------- ----------- ----------- -----------
Loss before income taxes and
extraordinary item (15,504) (10,449) (54,885) (32,360)
Income tax (benefit) expense 0 (842) 94 (6,454)
----------- ----------- ----------- -----------
Loss before extraordinary item (15,504) (9,607) (54,979) (25,906)
Extraordinary item - loss on early extinguishment
of debt (less related income tax benefit of
$2,133 in 1998) 0 0 0 (8,436)
----------- ----------- ----------- -----------
Net loss $ (15,504) $ (9,607) $ (54,979) $ (34,342)
=========== =========== =========== ===========
Basic and diluted net loss per common share:
Before extraordinary loss $ (0.26) $ (0.19) $ (0.98) $ (0.51)
Extraordinary loss 0 0 0 (0.16)
----------- ----------- ----------- -----------
Net loss $ (0.26) $ (0.19) $ (0.98) $ (0.67)
=========== =========== =========== ===========
Basic and diluted weighted average
common shares outstanding 59,482,427 51,303,077 56,370,269 50,972,361
=========== =========== =========== ===========
EBITDA, as adjusted (1) $ 8,202 $ 5,646 $ 29,269 $ 23,958
=========== =========== =========== ===========
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
ITC/\DELTACOM, INC.
FINANCIAL HIGHLIGHTS
(Unaudited)
(In thousands)
Three Months Ended Year Ended
December 31, December 31,
------------------- -----------------
% of % of % of % of
1999 REVS 1998 REVS 1999 REVS 1998 REVS
---- ---- ---- ---- ---- ---- ---- ----
<S> <C> <C> <C> <C> <C> <C> <C> <C>
Operating Revenues
Carriers' Carrier $19,194 28.0% $15,370 31.6% $ 72,853 29.8% $ 51,902 30.2%
Retail Services 49,429 72.0% 33,246 68.4% 171,991 70.2% 119,936 69.8%
------- ------- -------- --------
Total $68,623 $48,616 $244,844 $171,838
======= ======= ======== ========
Gross Margin
Carriers' Carrier $16,426 85.6% $12,860 83.7% $ 62,082 85.2% $ 44,260 85.3%
Retail Services 20,038 40.5% 11,396 34.3% 64,041 37.2% 44,599 37.2%
------- ------- -------- --------
Total $36,464 53.1% $24,256 49.9% $126,123 51.5% $ 88,859 51.7%
======= ======= ======== ========
EBITDA, as
adjusted (1)
Carriers' Carrier $ 9,489 49.4% $ 9,062 59.0% $ 37,931 52.1% $ 29,849 57.5%
Retail Services (1,287) (2.6)% (3,416) (10.3)% (8,662) (5.0)% (5,891) (4.9)%
------- ------- -------- --------
Total $ 8,202 12.0% $ 5,646 11.6% $ 29,269 12.0% $ 23,958 13.9%
======= ======= ======= ========
</TABLE>
(1) EBITDA, as adjusted, represents earnings before extraordinary item, net
interest, other income and other expenses, income taxes, and depreciation
and amortization. EBITDA, as adjusted, is not a measurement of financial
performance under generally accepted accounting principles and should not
be considered an alternative to net income as a measure of performance.
<PAGE>
<TABLE>
<CAPTION>
ITC/\DELTACOM, INC.
FINANCIAL HIGHLIGHTS
(Unaudited)
(In thousands)
Three Months Ended
------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
Dec. 31, % of Mar. 31, % of June 30, % of Sept. 30, % of Dec. 31, % of
1998 REVS 1999 REVS 1999 REVS 1999 REVS 1999 REVS
------- ------ ------- ------ ------- ------ ------- ------ ------- ------
Operating Revenues
Carriers' Carrier $15,370 31.6% $16,463 31.0% $18,166 31.7% $19,030 28.9% $19,194 28.0%
Retail Services 33,246 68.4% 36,571 69.0% 39,210 68.3% 46,781 71.1% 49,429 72.0%
------- ------- ------- ------- -------
Total $48,616 $53,034 $57,376 $65,811 $68,623
======= ======= ======= ======= =======
Gross Margin
Carriers' Carrier $12,860 83.7% $13,891 84.4% $15,328 84.4% $16,437 86.4% $16,426 85.6%
Retail Services 11,396 34.3% 12,382 33.9% 13,789 35.2% 17,832 38.1% 20,038 40.5%
------- ------- ------- ------- -------
Total $24,256 49.9% $26,273 49.5% $29,117 50.7% $34,269 52.1% $36,464 53.1%
======= ======= ======= ======= =======
EBITDA, as
adjusted (1)
Carriers' Carrier $ 9,062 59.0% $ 8,751 53.2% $ 9,914 54.6% $ 9,777 51.4% $ 9,489 49.4%
Retail Services (3,416) (10.3)% (2,746) (7.5)% (2,909) (7.4)% (1,720) (3.7)% (1,287) (2.6)%
------- ------- ------- ------- -------
Total $ 5,646 11.6% $ 6,005 11.3% $ 7,005 12.2% $ 8,057 12.2% $ 8,202 12.0%
======= ======= ======= ======= =======
</TABLE>
(1) EBITDA, as adjusted, represents earnings before extraordinary item, net
interest, other income and other expenses, income taxes and depreciation
and amortization. EBITDA, as adjusted, is not a measurement of financial
performance under generally accepted accounting principles and should not
be considered an alternative to net income as a measure of performance.
<PAGE>
ITC/\DELTACOM, INC.
BALANCE SHEET HIGHLIGHTS
(In thousands)
(Unaudited)
<TABLE>
<CAPTION>
December 31, December 31,
1999 1998
------------- ------------
<S> <C> <C>
Balance Sheet Data:
Cash and cash equivalents $248,431 $184,167
Current assets, less restricted portion 310,940 227,858
Restricted assets 6,741 20,035
Property, plant and equipment, net 382,867 262,050
Other assets (excluding restricted assets) 107,050 77,574
Total assets 807,598 587,517
Current liabilities 72,768 52,040
Long-term debt and capital lease obligations, less current portion 516,156 416,859
Deferred income taxes 512 418
Total liabilities 589,436 469,317
Stockholders' equity 218,162 118,200
Total liabilities and stockholders' equity 807,598 587,517
Year Ended
December 31,
1999 1998
-------- --------
Other Financial Data:
Capital expenditures $165,540 $147,842
Cash flows (used in) provided by operating activities (5,334) 9,512
Cash flows used in investing activities 149,995 118,166
Cash flows provided by financing activities 219,593 198,447
</TABLE>
<PAGE>
ITC/\DELTACOM, INC.
QUARTERLY STATISTICAL HIGHLIGHTS
(Unaudited)
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C>
December 31, September 30, June 30, March 31,
1999 1999 1999 1999
----------- ------------ -------- ---------
Statistical Data*:
Cumulative markets 33 30 26 23
Business customers served - Retail Services** 12,375 11,900 11,250 11,000
Route miles 8,250 8,250 8,100 7,800
Collocations 125 70 36 30
Voice switches 10 9 8 7
ATM switches 10 10 10 7
Frame switches 17 17 19 15
Number of employees 1,640 1,570 1,330 1,170
Lines sold cumulative 128,200 91,800 74,400 60,000
Lines installed cumulative 101,500 76,000 56,000 45,300
Lines sold/Lines installed percentage 79% 83% 75% 76%
</TABLE>
* Data rounded except as to markets, collocations and switches.
** Reflects the combination of certain customers' multiple accounts into a
single customer profile.
<PAGE>
Exhibit 99.4
------------
NEWS RELEASE
Media Contact:
Moss Crosby
Director of Marketing
256-382-3851 - phone
256-382-3890 - fax
[email protected]
- -----------------------
www.itcdeltacom.com
McDonald steps down as President of ITC/\DeltaCom
Andrew M. Walker to assume role of President
West Point, GA (February 28, 2000) - - ITC/\DeltaCom, Inc. (Nasdaq/NMS: ITCD), a
leading telecommunications provider in the southern United States, announced
today that its President, Foster McDonald, will be leaving the company effective
April 1, 2000. After 16 years with ITC/\DeltaCom and its predecessor companies,
McDonald will rejoin his family business interests whose telecommunications
roots date back over fifty years. Those telecommunications interests have
included one of the predecessors to ITC/\DeltaCom. He will remain available to
the company on a consultative basis through the second quarter, 2000.
"The decision to leave ITC/\DeltaCom at this time has been most difficult
for me," said McDonald. "My reasons for leaving are completely personal, and
related to immediate family interests. I hope to remain very close to the
ITC/\DeltaCom family as I am confident that the foundation we have built to date
at ITC/\DeltaCom will be successful as the company continues to grow into the
future."
"Foster has been a great asset and resource in transforming a small,
privately owned, interexchange carrier into a public integrated
telecommunications provider. We've been fortunate to have the benefit of his
experience and leadership during these busy times and appreciate that Foster has
provided us with sufficient time and notice to make his departure
<PAGE>
Page 2
seamless to our company," said Andrew Walker, ITC/\DeltaCom vice chairman and
chief executive officer. Walker will add the role of President to his title on
April 1, 2000.
According to ITC/\DeltaCom chairman Campbell B. Lanier, III, "Since ITC
Holding acquired DeltaCom in early 1996, we have depended on Foster to provide
key leadership to integrate the ITC/\DeltaCom companies for the future. His
accomplishment in seeing this through will benefit our shareholders for many
years to come."
ITC/\DeltaCom, headquartered in West Point, Georgia, provides integrated
telecommunication services to mid-sized and major businesses in the southern
United States, and is a leading regional provider of wholesale long-haul
services to other communications companies. ITC/\DeltaCom's business
communication services include local exchange, long distance, enhanced data,
Internet and operator services, and the sale and maintenance of customer premise
equipment. The Company operates 34 branch locations in eight states, and its 10-
state, approximately 8,250-mile fiber optic network reaches over 100 points of
presence. ITC/\DeltaCom has interconnection agreements with BellSouth, GTE,
Southwestern Bell and Sprint for resale and access to unbundled network
elements, and is a certified Competitive Local Exchange Carrier (CLEC) in
Arkansas, Texas, and all nine BellSouth states.
Statements contained in this news release regarding expected financial results
and other planned events are forward-looking statements that involve risk and
uncertainties. Actual future events or results may differ materially from these
statements. Readers are referred to the documents filed by ITC/\DeltaCom with
the Securities and Exchange Commission, specifically the most recent filings
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, risks related to future growth and rapid
expansion, and volatility of stock prices. These and other applicable risks are
summarized under the caption "Risk Factors" in the Company's 1998 Annual Report
on Form 10-K.
