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) July 27, 1998
Florida East Coast Industries, Inc.
(Exact name of Registrant as specified in its charter)
Florida
(State or other jurisdiction of incorporation)
2-89530 59-2349968
(Commission File Number) (IRS Employer Identification No.)
One Malaga Street, St. Augustine, Florida 32085-1048
(Address of principal executive office) (Zip Code)
Registrant's telephone number, including area code: 904-829-3421
1650 Prudential Drive, Jacksonville, Florida 32207
(Former name or former address, if changed since last report)
ITEM 5. OTHER MATERIALLY IMPORTANT EVENTS
======================================================
See the following Press Release dated July 27, 1998, announcing that Florida
East Coast Industries is now in control of 36 fiber optic communications fibers
(dark) along its 350 mile Florida East Coast Railway right-of-way from
Jacksonville to Miami.
"FECI (NYSE: FLA) GAINS CONTROL OF FIBER OPTIC LINKS BETWEEN
JACKSONVILLE AND MIAMI
Company Says Deal Opens Door to New Revenue Sources
"St. Augustine, Florida-(July 27, 1998)-Florida East Coast Industries, Inc.
(NYSE: FLA) today announced an agreement with Williams Network that will give
FECI control of 36 fiber optic communications fibers along its 350 mile Florida
East Coast Railway right-of-way from Jacksonville to Miami. The agreement
reflects FECI's strategy to expand its revenue base by finding new creative ways
to extract value from its traditional assets.
"FECI now controls a section of the information super highway. Control of these
fibers puts FECI and its shareholders in position to directly benefit from the
information technology revolution," Chairman and CEO Carl F. Zellers said.
"Traditionally, we have earned our way by moving freight. Now, more and more,
we intend to boost earnings by utilizing the right-of-way for the movement of
data by leasing space for fiber conduit installed by others; by leasing or sale
of conduit installed by FECI; and by utilizing the fibers now controlled by
FECI."
"Currently, the fiber is "dark" and will require the installation of electronic
equipment to be operational. The agreement also grants FECI vital "last mile
rights", which allow it to deliver data services directly to the end consumer.
The fibers would connect to data centers at either end of the route and to
customers along the length of the right of way.
"The company is currently reviewing its strategic options in order to most
profitably use this new asset.
"The principal operations of Florida East Coast Industries, Inc., a publicly-
held company based in St. Augustine, Florida, and its subsidiaries primarily
relate to the transportation of goods by rail and to the development, leasing,
management and sale of real estate. Both the transportation and realty
operations are located within the state of Florida. The rail segment of the
company operates only within the state of Florida, with the majority of its
revenues being derived from interline traffic from two connecting rail
carriers. Approximately one-third of the traffic is derived from the Company's
five largest customers.
"Williams (NYSE: WMB), through its subsidiaries, provides a full range of
traditional and leading-edge communications and energy services and is the
nation's largest-volume transporter of natural gas."
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.
FLORIDA EAST COAST INDUSTRIES, INC.
BY: s/s T. Neal Smith
Vice President & Secretary
Dated: 7/27/98
