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): March 17, 2000
KMC TELECOM HOLDINGS, INC.
(Exact Name of Registrant as Specified in Its Charter)
Delaware 333-50475 22-3545325
(State or Other (Commission (I.R.S. Employer
Jurisdiction File Number) Identification No.)
of Incorporation)
KMC Telecom Holdings, Inc.
1545 Route 206, Suite 300
Bedminster, New Jersey 07921
(Address of Principal Executive Offices, Including Zip Code)
Registrant's telephone number, including area code: 908-470-2100
Exhibit List Appears on Page 4
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Item 5. Other Events.
KMC Telecom Holdings, Inc. (the "Registrant") desires to release its
financial results for the year ended December 31, 1999 by filing them with the
Securities and Exchange Commission. Attached hereto is a copy of a press release
relating to the Registrant's financial results for the year ended December 31,
1999. Certain matters discussed in the press release are forward-looking
statements that involve risks and uncertainties, including statements relating
to its expansion plans, strategy and products. As a result, actual results,
events or conditions, financial or otherwise, can differ materially from the
results and expectations referred to in those statements. The Registrant
undertakes no duty to update such forward-looking statements.
Item 7. Financial Statements, Pro Forma Financial Information
and Exhibits.
(a) Financial Statements of Businesses Acquired.
Not Applicable
(b) Pro Forma Financial Information.
Not Applicable
(c) Exhibits.
The following exhibits are filed with this Report.
Exhibit No. Description.
99.1 Press Release, dated March 17, 2000
2
<PAGE>
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 hereunto duly authorized.
KMC TELECOM HOLDINGS, INC.
Date: March 17, 2000 By: /S/ ROBERT F. HAGAN
--------------------------
Name: Robert F. Hagan
Title: Senior Vice President, Finance
<PAGE>
EXHIBIT LIST
Exhibit No. Description
99.1 Press Release, dated March 17, 2000
EXHIBIT 99.1
KMC TELECOM ISSUES FOURTH QUARTER AND FULL YEAR 1999
FINANCIAL RESULTS
COMPETITIVE LOCAL EXCHANGE CARRIER TRIPLES REVENUE IN YEAR OF MAJOR MARKET
EXPANSION, ACCESS LINE GROWTH AND RISE IN DEDICATED CIRCUITS
BEDMINSTER, NJ, MARCH 17, 2000 - KMC Telecom Holdings, Inc. (KMC), a
leading provider of competitive local telecommunications services, today issued
fourth quarter and full year 1999 financial results, reporting strong growth
highlighted by a triple-digit percentage increase in revenue over the prior
year.
KMC's financial results reflect a fourth quarter in which the company
entered 11 new markets - bringing total markets served to 34 at the end of the
year - and realized significant increases in access lines. The company also
experienced significant growth in dedicated circuits driven by demand for data
and Internet services.
"We are extremely pleased with KMC's results, which demonstrate the
company's success in entering new markets, winning customers and realizing
revenue increases," said William Stewart, Chief Financial Officer. "During the
first half of 2000, we intend to continue our expansion, completing networks in
a minimum of three new markets, and accelerating our evolution to be a data
CLEC."
Total revenue for the three months and 12 months ended December 31, 1999
rose almost three-fold, to $22.0 million and $64.3 million, respectively,
compared to $8.8 million for the fourth quarter of 1998 and $22.4 million for
the full year 1998. In the fourth quarter alone, buildings served by KMC's
switches increased 38 percent from 2,989 to 4,128, while the number of customers
served rose 27 percent from 4,786 to 6,060.
KMC's total access lines rose 16 percent, quarter over quarter, from
98,431 lines at September 30, 1999 to 113,750 lines at December 31, 1999.
Fueling strong access line growth was a 26 percent rise in on-switch access
lines, which grew from 71,986 at the end of the third quarter of 1999 to 90,408
at the end of the fourth quarter of 1999. The increase was comprised of 15,319
new lines and the conversion of 3,103 resale lines to on-switch status.
Reflecting continuing strong customer demand for KMC's data solutions,
dedicated circuits grew by 34,512 to 204,281 DSO equivalents, representing 20
percent growth, during the fourth quarter.
For the three month and 12 month periods ended December 31, 1999, the
Adjusted EBITDA deficit was $27.2 and $101.8 million respectively (Adjusted
EBITDA is defined as earnings before interest, taxes, depreciation, and
amortization charges, non-cash stock compensation expense and other expense).
This compares to deficits of $13.2 and $39.4 million for the corresponding
periods in 1998.
Net loss for the fourth quarter 1999 and year ended December 31, 1999 was
$73.5 and $225.7 million, respectively, compared to net losses of $23.1 and
$76.8 million for the corresponding periods in 1998.
KMC Telecom Holdings, Inc., a privately owned facilities-based competitive
local exchange carrier, operates state-of-the-art local fiber optic networks in
34 markets throughout the Mid-Atlantic, Midwest and South. Founded in 1995, the
company offers customers superior alternatives in local telephone and data
communication services. Visit our web site, WWW.KMCTELECOM.COM for more
information.
CERTAIN MATTERS DISCUSSED IN THIS RELEASE ARE FORWARD-LOOKING STATEMENTS
THAT INVOLVE RISKS AND UNCERTAINTIES, INCLUDING CONSTRUCTION RISKS AND OTHER
RISKS DETAILED FROM TIME TO TIME IN KMC'S REPORTS FILED WITH THE SECURITIES
EXCHANGE COMMISSION, INCLUDING THOSE CONTAINED IN KMC'S FORM 10-K FOR THE FISCAL
YEAR ENDED DECEMBER 31, 1998 AND FORM 10-Q FOR THE QUARTERS ENDED MARCH 31,
1999, JUNE 30, 1999 AND SEPTEMBER 30, 1999. AS A RESULT, ACTUAL RESULTS, EVENTS
OR CONDITIONS, FINANCIAL OR OTHERWISE, CAN DIFFER MATERIALLY FROM THE RESULTS
REFERRED TO IN THOSE STATEMENTS. KMC UNDERTAKES NO DUTY TO UPDATE SUCH
FORWARD-LOOKING STATEMENTS.
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