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SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, DC 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) September 16, 1999
GST TELECOMMUNICATIONS, INC.
GST USA, INC.
(Exact name of Registrants as specified in their charters)
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CANADA 4813 NOT APPLICABLE
DELAWARE (Primary Standard Industrial 83-0310464
(State or other jurisdiction Classification Code Number) (I.R.S. Employer
of incorporation or organization) Identification No.)
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4001 Main Street, Vancouver, Washington 98663
(Address of principal executive offices) (Zip Code)
Registrants' telephone number, including area code (360) 356-7100
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Item 5. Other Events.
On September 16, 1999, the Registrants announced, in a press release
which is attached hereto as Exhibit 99.01 and incorporated by reference herein,
that they received $30.0 million from Global Light Telecommunications, Inc.
("Global Light") and others in connection with the settlement of various
lawsuits between the Registrants, Global Light, GST Mextel, Inc., W. Gordon
Blankstein, Ian Watson, and Peter E. Legault.
On September 20, 1999, the Registrants announced that they estimate
reduced losses per share due to the receipt of $30.0 million in connection with
the Global Light settlement, and also announced estimates of total revenues and
adjusted EBITDA for the quarter ending September 30, 1999, in a press release
which is attached hereto as Exhibit 99.02 and incorporated by reference herein.
Item 7. Financial Statements and Exhibits.
99.01 Press Release dated September 16, 1999 regarding the Registrants'
receipt of $30.0 million from Global Light Telecommunications,
Inc. and others in connection with the settlement of various
lawsuits.
(Filed herewith).
99.02 Press Release dated September 20, 1999 regarding the Registrants'
estimates of losses per share, total revenues and adjusted
EBITDA for the quarter ending September 30, 1999. (Filed
herewith).
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.
GST TELECOMMUNICATIONS, INC.
Date: September 20, 1999 By: /s/ Daniel L. Trampush
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Daniel L. Trampush
Senior Vice President and
Chief Financial Officer
GST USA, INC.
Date: September 20, 1999 By: /s/ Daniel L. Trampush
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Daniel L. Trampush
Senior Vice President and
Chief Financial Officer
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EXHIBIT 99.1
FOR IMMEDIATE RELEASE SEPTEMBER 16, 1999
GST TELECOMMUNICATIONS RECEIVES $30 MILLION SETTLEMENT PAYMENT
FROM GLOBAL LIGHT TELECOMMUNICATIONS
(VANCOUVER, Wash.) GST Telecommunications, Inc. (Nasdaq: GSTX), a leading
Integrated Communications Provider (ICP) in California and the western United
States, today announced that it has received $30 million from Global Light
Telecommunications, Inc. (AMEX: GBT) and others in connection with the
settlement of various law suits between GST Telecommunications, Inc., Global
Light Telecommunications, Inc., GST Mextel, Inc., GST (U.S.A.), Inc., W. Gordon
Blankstein, Ian Watson, and Peter E. Legault.
GST Telecommunications, Inc., an Integrated Communications Provider (ICP)
headquartered in Vancouver, Wash., provides a broad range of integrated
telecommunications products and services including enhanced data and Internet
services and comprehensive voice services throughout the United States, with a
robust presence in California and the West. Facilities-based GST continues to
focus on its western regional strategy by anchoring its next generation networks
in local markets and connecting them via long haul fiber networks. Visit GST's
Web site at www.gstcorp.com.
For more information, please contact:
GST Telecommunications, Lisa Miles: (800) 667-4366
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EXHIBIT 99.02
FOR IMMEDIATE RELEASE SEPTEMBER 20, 1999
GST ESTIMATES REDUCED LOSSES PER SHARE OF ($.10) TO ($.20)
DUE TO RECEIPT OF $30 MILLION GLOBAL LIGHT SETTLEMENT AND OTHER FACTORS
FOR THE THIRD QUARTER ENDING SEPTEMBER 30, 1999
(VANCOUVER, Wash.) GST Telecommunications Inc., (NASDAQ: GSTX) announced today
that it expects to report a loss for the quarter ending September 30, 1999
estimated to range from ($.10) to ($.20) per share including the $30 million
settlement from Global Light that GST received in the quarter, and estimated to
range from ($.90) to ($1.00) per share excluding the Global settlement.
Total revenues, which are expected to range from $90 to $95 million for the
quarter ending September 30, 1999, consist of construction revenues, estimated
to range from $39 to $42 million, services revenues estimated to range from $50
to $52 million, and product revenues estimated to range from $1 to $1.5 million.
The Company estimates adjusted EBITDA (EBITDA before Y2K and litigation costs)
for the quarter ending September 30, 1999 to range from $9 to $11 million.
Factors which positively impacted the Company's performance in the quarter are
expected to include the $30 million Global Light settlement and the impact of
the successful divestiture of the Company's Guam and GST Home properties
announced in the second quarter. Such divestitures resulted in lower revenues
for the quarter while improving adjusted EBITDA. Revenues were adversely
affected by construction delays which shift the recognition of revenue derived
from construction, facility sales, and other into subsequent periods as well as
reduced revenue from stand-alone long distance and off-net wholesale private
line services.
"We see continued strong demand for our local, data, and broadband services and
are very optimistic about our future business prospects" stated Joe Basile,
president and chief executive officer of GST. Basile added, "We believe our
strategy of focusing on value-added integrated services offered on our network
is working and we anticipate continuing to make progress on divesting our
non-core assets."
GST Telecommunications, Inc., an Integrated Communications Provider (ICP)
headquartered in Vancouver, Wash., provides a broad range of integrated
telecommunications products and services including enhanced data and Internet
services and comprehensive voice services throughout the United States, with a
significant market presence in California and the West. Facilities-based GST
continues to focus on its western regional strategy by anchoring its next
generation networks in local markets and connecting them via long haul fiber
networks. Visit GST's Web site at www.gstcorp.com.
The Company does not generally intend to issue operating estimates prior to
closing and internal financial reporting of its fiscal quarters irrespective of
the Company's general operating performance during the quarter.
This release contains forward-looking statements which involve risks and
uncertainties. Our actual results may differ materially from the forward looking
statements made here. Factors which may affect actual results include the
success of the Company's strategic focus, competition, divestiture of its
remaining non-core assets, and further delays in the recognition of construction
revenue. Additional factors which may affect actual results are contained in the
Company's filings with the SEC, including the report on Form 10-K for the period
ended December 31, 1998. Forward-looking statements in this release are made
pursuant to the safe harbor provisions contained in the Private Securities
Litigation Reform Act of 1995.
For more information, please contact:
GST Telecommunications, Steve Kuyatt or Lisa Miles: (800) 667-4366
