<PAGE> 1
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, DC 20549
-------------------------
FORM 8K
CURRENT REPORT
PURSUANT TO SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934
Date of report (Date of earliest event reported): November 13, 2000
Florida East Coast Industries, Inc.
(Exact name of Registrant as Specified in Charter)
Florida 001-08723 59-2349968
(State or Other Jurisdiction (Commission File (IRS Employer
of Incorporation) Number) Identification No.)
1 Malaga Street
St. Augustine, Florida 32084
(Address of Principal Executive Offices):
Registrant's telephone number, including area code: (904) 829-3421
<PAGE> 2
================================================================================
Item 9. Furnished Information.
On November 13, 2000, John McClellan, President of EPIK Communications
Incorporated, the wholly owned telecommunications subsidiary of Florida East
Coast Industries, Inc., (NYSE: FLA, FLA.b) intends to speak at the UBS Warburg
Fifth Annual Global Telecom Conference. The conference is being held November 13
- 15, 2000 at the Plaza Hotel, New York City, New York. Mr. McClellan will
present slides, which summarize EPIK business accomplishments since its start-up
in May 1999, as well as (but not limited to) business opportunities, markets,
growth potential and EPIK Executive management.
The information contained in the slide presentation is reproduced below.
Slide 1
Cover Slide, EPIK Communications "Beyond the Ordinary"
Slide 2
This presentation contains "forward-looking statements" concerning revenues,
expenses, earnings, and assessments of current industry and market conditions,
technology, and prospects for the future. The Company cautions that such
statements are necessarily based on certain assumptions, which are subject to
risks and uncertainties which could cause actual results to materially differ
from those contained in these forward looking statements, including, but not
limited to, the ability to complete systems and expand and enhance its
telecommunications network within currently estimated time frames and budgets;
the ability to compete effectively in a rapidly evolving and price competitive
marketplace and to respond to customer demands and industry changes; the ability
to achieve revenues from products and services in the telecommunications
business that are in the early stages of development or operation; the ability
to manage growth, changes in business strategy, changes in regulations and
technological changes, and general economic conditions particularly in the state
of Florida. Further information on these risk factors is included in the
Company's filings with the Securities and Exchange Commission, including the
Company's Form 10-K and most recently filed 10Q. The Company assumes no
obligation to update the information contained in this presentation.
Slide 3
EPIK ACHIEVEMENTS: WE ARE OFF TO A RUNNING START
From a standing start in May 1999, we have secured $450 million in funding from
our Parent company and...
* Built the team
<PAGE> 3
-1 -> 180+ people in approx.1 year -> 200+ by 12/31/00
* Developed the network
-450 miles lit with OC-192 in first 6 months -> 1,500 miles today
-> 1,850+ miles in 2001
-170,000 dark fiber miles installed -> 260,000 by
Q1-'01
* Built the revenue backlog
-$180 million (Nov `00)
* Created a national footprint through fiber swaps
-Nearly 12,000 route miles across total network
* Expanded into the Internet
-Deploying OC-192 IP backbone
-Leadership of the NAP of the Americas
Slide 4
EPIK IS A STRONGLY BACKED TELECOM CARRIER SEEKING NEW OPPORTUNITIES FOR GROWTH
* Incorporated in May 1999 as a wholly-owned subsidiary of Florida East
Coast Industries
* Exploit the rapidly growing carriers' carrier market through use of
valuable railroad rights-of-way running through high growth
metropolitan areas
* Capitalized with equity contribution in excess of $200 million
-Contributed assets with market value of approximately $50 million
-Cash infusion for capital expenditures of $152 million
* Recent commitment of parent for $237 million additional capital
expenditures provides fully funded Southeast business plan
* Continuously seeking opportunities to fuel growth
<Slides 5, 6 & 7 are a graphic that build - Categories of Target Customers, Core
Services, Value Proposition on each slide>
Slide 5
EPIK IS SERVING THE RAPIDLY GROWING "CARRIERS' CARRIER" MARKET SEGMENT Target
Customers
* Competitive Local Exchange Carriers (CLECs)
* Internet Service Providers (ISPs)
* Long Distance Carriers (IXCs)
* Wireless and Cellular Carriers
* International Carriers
<PAGE> 4
Slide 6
EPIK PROVIDES A BROADENING RANGE OF SERVICES TO CARRIER CUSTOMERS Core Services
* Bandwidth (Private Lines)
* Wave Services
* Dark fiber
* Collocation
* Internet Protocol Services
Slide 7
EPIK'S DIFFERENTIATES THROUGH CONTINUOUS EXPANSION OF CAPABILITIES TO ANTICIPATE
AND MEET CUSTOMERS' NEEDS Value Proposition
* Integrated end-to-end solutions for carrier customers
* Rapid time-to-market
* Flexible growth paths for customers
* Continuous leverage of disruptive technologies to maintain cost
and service leadership
Slide 8
EPIK IS EXPANDING ITS STRATEGIC FOOTPRINT TO CREATE OPTIONS FOR LONG TERM
SUSTAINABLE GROWTH (Three large circles 1st - Depth; 2nd - Reach; 3rd - Value
Added each with explaining text)
Depth -Create metro rings in major cities and cable landing locations
to provide end-to-end solutions that bypass incumbent
carriers
Reach -Expand network reach through swaps and JVs
Value Added -Deploy OC-192 IP backbone in Southeast
-Develop advanced services suite
-Leadership of NAP of the Americas
Slide 9
WE HAVE BUILT A HIGH PERFORMANCE TEAM WITH PROVEN EXPERTISE <Organizational
Chart>
JOHN MCCLELLAN President
Experience
-Monitor Company, Board of Directors, Global Telecom Practice
-Decision Architects, CEO, Simulation Software
BENJAMIN FINZI EVP/Chief Operating Officer
Experience
-Monitor Company, Global Account Manager, Global Telecom and
Internet Practices
-Boston Consulting Group
-Almog Software, Vice President, Sales
BOB BYRNE EVP/Chief Financial Officer
<PAGE> 5
Experience
-Advent International, Partner
-Orion Partners, Director & Co-Founder
-Thomas Lee
-Dillon, Reed
JOHN WELCH Senior VP General Counsel
Experience
-O'Melveny & Myers, Partner, Global Telecom Practice
FRED SCHWEIZER Senior VP, Marketing and Sales
Experience
-NTT America, Vice President and General Manager, Wholesale
Services
-IBM, National Marketing, Distribution and Product Development
Slide 10
EPIK'S STRATEGY AND ACTIONS
<Graphic 5 ovals surrounding 1 circle>
Circle Long Term Winning Position
Oval 1 Core: Southeast Network
Oval 2 Depth: Metro Rings and cable landings
Oval 3 Reach: Creating a national backbone
Oval 4 Value Added: Internet Services
Oval 5 New Frontiers: Latin America
Slide 11
EPIK'S STRATEGY AND ACTIONS
<Graphic 1 oval and 1 circle>
Core: Southeast Network
Slide 12
WE HAVE BUILT OUR SOUTHEAST NETWORK VERY RAPIDLY
EPIK's "FLORIDA FOOTPRINT" NETWORK
(map of Florida and Georgia (starting with Atlanta)
Atlanta
Tallahassee
Jacksonville
St. Augustine
Daytona Beach
Tampa
Orlando
Melbourne
Ft. Myers
West Palm Beach
<PAGE> 6
Ft. Lauderdale
Miami
(graphic) EPIK COMMUNICATIONS
Network Development
Current 2001
Lit Route Miles 1,500 1,850
Fiber Miles 170,000 262,000
Long Haul POPs 12 13
Metro POPs 4 40
Protected OC-192 Rings 2 3
(bar chart) Title: Revenue Backlog
($ in millions)
Dec. 1999 19
March 2000 61
June 2000 75
November 2000 180
Slide 13
ONGOING INVESTMENT IN STATE-OF-THE-ART TECHNOLOGY MEANS LOW COSTS AND HIGHEST
SERVICE QUALITY
<Graphic>
Three components:
1. Fiber (Logos-Corning, Lucent Technologies) Enhanced photos of lit fiber.
2. Optronics - Nortel Networks Optera OC-192 DWDM provides state-of-the-art
optical technologies (Logo-Nortel Networks) Photo of equipment
3. Next Generation - Deploying next generation optronics and routers today
(Logos-Juniper Networks, Sycamore Networks, Oni Systems)
Slide 14
EPIK'S STRATEGY AND ACTIONS
<Graphic 1 circle and 2 ovals>
Core: Southeast Network
Depth: Metro Rings and Cable Landings
Slide 15
METRO RINGS ENABLE EPIK TO PROVIDE DIFFERENTIATED END-TO-END SERVICES BENEFITS
OF METRO RINGS
* Enables EPIK to provide end-to-end on-net solutions
<PAGE> 7
* Reduces provisioning time
* Avoids using customers' competitors (RBOCs) as high-priced suppliers
for metro connections
<Graphic> City scene with 3 circles pointing into city <Graphic> Square EPIK POP
with a line to EPIK Backbone - 1. RBOC Central Office; 2. Customer Sites;
3. Carrier Hotels.
* We are lighting up metro rings in major cities along our backbone network
-Miami, Orlando, Tampa, Jacksonville and Atlanta
Slide 16
EPIK'S STRATEGY AND ACTIONS
<Graphic 1 circle and 3 ovals>
Core: Southeast Network
Reach: Creating a National Backbone
Depth: Metro Rings and cable landings
Slide 17
WE HAVE TURNED 216 FIBER STRANDS ON 1,200 ROUTE MILES INTO 12,000 MILES THROUGH
AN AGGRESSIVE SWAPPING STRATEGY
<Graphic: Map of United States with following
cities indicated showing by network, solid line (______) for completed swaps and
dash lines (-------) for planned swaps.>
Seattle
Portland
Sacramento
Oakland
San Jose
Los Angeles
San Diego
Phoenix
Boise
Salt Lake City
Denver
Amarillo
Dallas
Austin
San Antonio
Houston
New Orleans
Memphis
Kansas City
Omaha
Des Moines
<PAGE> 8
Minneapolis
Detroit
Indianapolis
Nashville
Chattanooga
Atlanta
Tallahassee
Orlando
Tampa
Miami
Daytona Beach
Jacksonville
Charlotte
Raleigh
Richmond
Washington
Baltimore
Philadelphia
New York
Boston
Albany
Toronto
Slide 18
EPIK'S STRATEGY AND ACTIONS
<Graphic 1 circle and 4 ovals>
Core: Southeast Network
Value Added: Internet Service
Depth: Metro Rings and cable landings
Reach: Creating a national backbone
Slide 19
WE ARE CREATING FROM DAY ONE A NETWORK OPTIMIZED FOR ADVANCED SERVICES
<Slide: Vision: The New IP Infrastructure. Graphic includes 4 larger ovals each
with 4 smaller connecting ovals representing separate networks (Private Data
(ATM/FR), Internet (IP), Cable (Broadcast) and Voice (Circuit). Arrow pointing
to one large oval (The New IP Structure) with 8 small ovals connected
representing Cable, Private Data, Voice, Internet Access repeated twice. Source:
Juniper Networks.
Slide 20
EPIK EXPLOITS OUR STATE-OF-THE-ART NETWORK TO FUEL OUR GROWTH THROUGH HIGHER
VALUE ADDED SERVICES
Telecommunications Industry seven layer stack. 1. Physical, 2. Data Link, 3.
Network, 4. Transport, 5. Session, 6. Presentation, 7. Application; Graphic
Showing how EPIK is moving up the chain in value added services. Square around
EPIK 2000 showing Wave Services, PL: DS-3/OC-X, Dark Fiber and Collocation.
Dotted lines around EPIK 2001
<PAGE> 9
showing IP-VPN, IP Transit and IP Access. Dotted line around EPIK 2002 showing
Future services to be determined.
Slide 21
EPIK'S INTERNET LEADERSHIP - NAP OF THE AMERICAS
<AT&T graphic>
<Williams Communications graphic>
<Global Crossing graphic>
<360 Networks graphic>
<Cable & Wireless graphic>
<L3 Communications graphic>
EPIK has led the development of the new Internet Network Access Point (NAP) in
South Florida
The NAP of the Americas will reinforce Miami's telecom leadership as the world's
5th largest telecom hub
EPIK's leadership of the 65 member NAP consortium is creating long term
relationships with industry leaders <EPIK graphic>
Slide 22
EPIK'S STRATEGY AND ACTIONS
<Graphic 1 circle and 5 ovals>
Core: Southeast Network
New Frontiers: Latin America
Depth: metro Rings and cable landings
Value Added: Internet Services
Reach: Creating a national backbone
Slide 23
SOUTH FLORIDA'S ROLE AS INTERNATIONAL HUB OFFERS POTENTIAL GROWTH OPPORTUNITIES
FOR EPIK IN SERVICING LATIN AMERICA
Graphic showing underwater cables coming into U.S. at West Palm & Hollywood,
Florida from Latin America origination points. Source: Alcatel
Slide 24
EPIK'S STRATEGY AND ACTIONS
<Graphic 5 ovals surrounding 1 circle>
Circle Long Term Winning Position
Oval 1 Core: Southeast Network
Oval 2 Depth: Metro Rings and cable landings
Oval 3 Reach: Creating a national backbone
Oval 4 Value Added: Internet Services
Oval 5 New Frontiers: Latin America
<PAGE> 10
Slide 25
EPIK COMMUNICATIONS IS MOVING VERY AGGRESSIVELY TO BECOME A LEADING NEXT
GENERATION CARRIER
EPIK has a strong headstart due to the unique location, pre-existing assets and
fully funded Southeast business plan
Our wholesale strategy enables us to grow rapidly with reduced capital exposure
and SG&A burn rate
We are becoming a major player in the Southeast marketplace, and our backlog is
growing rapidly
We are expanding our service suite up the value chain
Our fiber swapping strategy has enabled us to develop a national footprint at a
lower incremental cost
<PAGE> 11
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 thereunto duly authorized.
FLORIDA EAST COAST INDUSTRIES, INC.
By: /s/ /s/ Heidi J. Eddins
------------------------------------
Name: Heidi J. Eddins
Title: Executive Vice President,
Secretary and General Counsel
November 13, 2000
