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Filed by: McLeodUSA Incorporated
Pursuant to Rule 425 under the Securities Act of 1933
and deemed filed pursuant to Rule 14a-12 of the Securities Exchange Act of 1934
Subject Company: CapRock Communications Corp.
Commission File No.: 000-24581
[MCLEODUSA LOGO APPEARS HERE]
McLeodUSA Incorporated
McLeodUSA Technology Park
6400 C Street SW, PO Box 3177
Cedar Rapids, IA 52406-3177
Press and Investor Contact: Bryce E. Nemitz
[email protected]
Phone: (319) 790-7800
FAX: (319) 790-7767
For Immediate Release
McLeodUSA to Meet or Exceed Current Market Expectations
For Third Quarter, Fourth Quarter and Year End
(CEDAR RAPIDS, Iowa) -- Oct. 4, 2000 -- Steve Gray, President and COO of
McLeodUSA Incorporated (Nasdaq: MCLD), stated that he expects the company will
meet or exceed the average of the current market consensus for third quarter,
fourth quarter and year end 2000, which would extend the company's record of
meeting or exceeding market expectations to 19 consecutive quarters. Gray's
comments came during a conference call with investors and financial analysts on
Tuesday to discuss the Company's announcement that it will acquire Dallas-based
CapRock Communications.
Gray also stated, "As far as our guidance for 2001, including CapRock, our
revenue objectives would be between $2.1 and $2.2 billion, which would be a 50%
increase over 2000. Our guidance for EBITDA in 2001 is between $225 and $235
million, a 370% improvement over 2000. We would expect capital expenditures to
be around $1 billion, and we expect to remain fully funded."
Third quarter results for the period ended September 30 are expected to be
announced October 25 after market close with a conference call the following
morning.
Note: The 2001 guidance reflects the accounting for future IRUs (indefeasible
right of use) utilized by McLeodUSA which recognizes revenue and EBITDA over the
life of the IRU.
Analyst / Investor Conference: Network and Data Strategy
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McLeodUSA also announced plans to host an Analyst / Investor Conference in
Houston on Wednesday, November 8. The presentation will be webcast live;
details of the conference location, schedule and webcast will be available
the week of October 23 and communicated in a press release. The primary
topic at this conference will be the company's rollout plan for its network
and data strategy.
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About McLeodUSA
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McLeodUSA provides selected telecommunications services to customers
nationwide. Integrated communications including local services are currently
available in several Midwest and Rocky Mountain states; long distance and
advanced data services are available in all 50 states. McLeodUSA is a
facilities-based telecommunications provider with 361 ATM switches, 37 voice
switches, nearly 824,000 local lines, and over 9,000 employees. The Company
recently expanded its marketplace for advanced data and Internet services to
all 50 states through the acquisition of Splitrock Services, Inc. The
network acquired in the Splitrock transaction is capable of transmitting
integrated next-generation data, video and voice services, reaching 800
cities and 90 percent of the U.S. population. In the next 12 months,
McLeodUSA will distribute 30 million directories in 26 states, serving a
population of 52 million. McLeodUSA Incorporated is a Nasdaq-100 company
traded as MCLD. The Company's web site is available at www.mcleodusa.com.
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Some of the statements contained in this press release discuss future
expectations, contain projections of results of operations or financial
condition or state other forward-looking information. Those statements are
subject to known and unknown risks, uncertainties and other factors that
could cause the actual results to differ materially from those contemplated
by the statements. The "forward-looking" information is based on various
factors and was derived using numerous assumptions. In some cases, you can
identify these so-called forward-looking statements by words like "may,"
"will," "should," "expects," "plans," "anticipates," "believes," "estimates,"
"predicts," "projects," "potential," or "continue" or the negative of those
words and other comparable words. You should be aware that those statements
only reflect the predictions of McLeodUSA. Actual events or results may
differ substantially. Important factors that could cause actual events or
results of McLeodUSA to be materially different from the forward-looking
statements include availability of financing and regulatory approvals, the
number of potential customers in a target market, the existence of strategic
alliances or relationships, technological, regulatory or other developments
in the industry, changes in the competitive climate in which McLeodUSA
operates and the emergence of future opportunities. These and other
applicable risks are summarized under the caption "Risk Factors" in the
McLeodUSA Annual Report on Form 10-K for the fiscal year ended December 31,
1999, which is filed with the Securities and Exchange Commission.
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