News Release
| PAETEC Holding Corp. Announces Second Quarter 2007 Results |
FAIRPORT, N.Y.--(BUSINESS WIRE)--Aug. 9, 2007--PAETEC Holding Corp. (NASDAQ GS: PAET) today announced second quarter 2007 financial and operating results. "Our first full quarter as a publicly traded company is one that we are excited about. PAETEC enjoyed the best financial quarter in our company's history," said PAETEC Chairman and CEO Arunas A. Chesonis. "We continued to see significant growth and interest in our data and VoIP product offerings, while also benefiting from the synergies being realized from the US LEC merger." Highlights of second quarter 2007, which is the first in which US LEC's results are reflected for the full quarter, include the following:
-- Revenue of $274.5 million, which represented an 89% increase
over second quarter 2006 revenue of $145.6 million;
-- Adjusted EBITDA* of $52.5 million, which represented a 109%
increase over second quarter 2006 adjusted EBITDA of $25.1
million;
-- Net income of $6.0 million compared to a $(5.8) million net
loss in second quarter 2006;
-- Free cash flow* of $31.5 million, which represented the 18th
consecutive quarter in which PAETEC Holding or its predecessor
generated positive free cash flow;
-- Ended the quarter with a cash balance of $84.5 million;
-- An increase of 141% in the number of access line equivalents
in service, from 1.10 million as of June 30, 2006 to 2.65
million as of June 30, 2007; and
-- Successful completion on July 10, 2007 of amendments to
PAETEC's existing bank credit facility and a $300 million
senior note offering priced at the end of the quarter.
Quarterly Performance
Total revenue for second quarter 2007 increased 89% to $274.5 million from $145.6 million for second quarter 2006, principally due to the addition of US LEC's results. Adjusted EBITDA for the second quarter 2007 increased 109% to $52.5 million over adjusted EBITDA for the second quarter 2006 of $25.1 million. Adjusted EBITDA margin, which represents adjusted EBITDA as a percentage of total revenue, was 19.1% for the second quarter 2007 compared to an adjusted EBITDA margin of 17.3% for the second quarter 2006. Network operating leverage and merger-related synergies largely accounted for the increase in adjusted EBITDA margins. Network Services, which accounted for 83% of PAETEC's second quarter 2007 total revenue, experienced strong growth, increasing 100% year over year to $228 million. US LEC's operations, PAETEC's fast growing MPLS VPN product, and its integrated voice and data T1 sales all contributed to the positive results. Carrier Services represented 14% of second quarter 2007 revenues and grew 75% year over year to $37.5 million, largely reflecting the addition of US LEC's operations as well as solid 19% internal growth. Integrated Services accounted for the remaining 3% of second quarter revenues and experienced an 11% decline year over year. Integrated Services continues to have an annual revenue cycle and tends to provide uneven results on a quarterly basis. Net income for second quarter 2007 was $6.0 million compared to a net loss of $(5.8) million for the second quarter of 2006. Last year's reported net loss was largely attributable to the company's leveraged recapitalization that resulted in $14.8 million in additional expenses. For second quarter 2007, depreciation and amortization expense was $20.9 million and interest expense was $18.5 million, both up significantly year over year primarily from the depreciation of a larger asset base associated with the merger, as well as increased debt levels as a result of the transaction. PAETEC ended the second quarter 2007 with 100.9 million common shares outstanding. A fully diluted share count as of the end of the second quarter 2007 also would reflect that the Company had approximately 14.1 million common shares subject to outstanding stock options, 7.5 million common shares represented by outstanding restricted stock units (RSUs), and 2.6 million common shares subject to outstanding warrants, amounting to a total of 24.2 million additional fully-diluted common shares. As a result, PAETEC's fully diluted common share count was approximately 125 million as of June 30, 2007. Pro Forma Quarterly Performance Total revenue for second quarter 2007 increased 9% to $274.5 million over the pro forma revenue of $252.3 million that the combined company would have had for second quarter 2006 assuming the US LEC merger had occurred on April 1, 2006 (without giving effect to any pro forma adjustments or unrealized synergies). Adjusted EBITDA for second quarter 2007 increased 31% to $52.5 million over the adjusted EBITDA of $40.2 million that the combined company would have generated for the second quarter 2006 on the same pro forma basis. Adjusted EBITDA margin of 19.1% for second quarter 2007 increased from a pro forma adjusted EBITDA margin of 15.9% for second quarter 2006, largely as a result of merger-related synergies and continued operating leverage of the company's network and employee base. Net income for second quarter 2007 was $6.0 million compared to a pro forma net loss of ($8.9) million for second quarter of 2006. Last year's pro forma net loss was largely attributable to PAETEC's June 2006 leveraged recapitalization that resulted in $14.8 million in additional expenses. For second quarter 2007, depreciation and amortization expense increased 1% from second quarter 2006 pro forma depreciation and amortization expense to $20.9 million. Interest expense nearly doubled to $18.5 million from the pro forma interest expense for second quarter 2006. Integration Update Integration efforts related to the US LEC merger to date have focused on network consolidation, the segmentation of sales distribution channels, the rebranding of marketing materials, and the integration of job functions and personnel policies. The majority of synergies were expected from savings in network costs and streamlining of certain SG&A components, which have largely been completed. PAETEC continues to expect that it will be able to realize a total of $25 million in merger-related synergies for 2007, as well as an additional $15 million for 2008. "Integration with the former US LEC is proceeding very well, with several milestones - such as the June merger of our respective data networks - occurring faster than anticipated," said EJ Butler, Jr., chief operating officer for PAETEC. "Our focus now and for the balance of the year is on the integration of systems, back office processes, and employee training. Continued progress should bring the availability of our entire product suite over the combined company footprint during the fourth quarter." Capital Expenditures PAETEC continues to invest in the enhancement of its network and product offerings. Capital expenditures for second quarter 2007 increased to $21.0 million, or 8% of total revenue, from $9.8 million, or 7% of total revenue, for second quarter 2006. Capital expenditures increased 26% from the $16.7 million in pro forma combined capital expenditures applied by PAETEC and US LEC in second quarter 2006 (or 7% of total combined revenues). Capital expenditures for second quarter 2007 were associated with investments in the PAETEC network, including expansion in the switching and information technology infrastructure. Cash flow, Financing, and Liquidity PAETEC reported second quarter 2007 free cash flow of $31.5 million, which increased 106% from $15.3 million in second quarter 2006. PAETEC also ended the quarter with a cash balance of $84.5 million, up from a first quarter 2007 level of $53.4 million, largely due to increased cash flow from operations as well as cash received from the exercise of stock options. Cash flow provided by operations was $36.0 million in second quarter 2007 and $(3.7) million used in operations in second quarter 2006. As of June 30, 2007, PAETEC's $50 million revolver remained undrawn and $798 million was outstanding under its credit facility term loan. On July 10, 2007, PAETEC closed on two advantageous financing transactions that did not result in any increase in total debt. PAETEC completed its sale of $300 million 9.5% Senior Notes due 2015 and used the proceeds from this issue to pay down its existing term loan from $798 to $498 million. In conjunction with the paydown, PAETEC amended its existing credit facility to consist of a $50 million revolver and a $500 million term loan.
With these transactions, PAETEC:
-- Introduced itself to a new debt investor class--the high yield
bond market;
-- Layered in long-term debt to better position its balance sheet
for growth;
-- Reduced its overall cost of capital, with the expectation that
its annual interest expense will decrease by approximately $3
million;
-- Increased its incremental term loan facility permitted under
its bank credit facility from $100 million to $225 million;
and
-- Obtained debt covenant modifications that provide it with
additional operational and financial flexibility.
Full Year 2007 Outlook
"The business continues to track as expected and we remain confident leading into the second half of 2007," said Keith Wilson, PAETEC's chief financial officer. "Our EBITDA margin increased significantly year-over-year, and we expect the positive trends to continue. As a result, we are pleased to reaffirm our 2007 guidance." The table below highlights PAETEC's revenue, adjusted EBITDA, and capital expenditure expectations on both a reported basis and on the pro forma basis described above, assuming the US LEC merger had occurred on January 1, 2007 instead of February 28, 2007. ($ in millions) FY 2007 (actual) FY 2007 (pro forma) ---------------------------------------------------------------------- Revenue $1,037 to $1,052 $1,110 to $1,125 Adjusted EBITDA $181 to $191 $195 to $205 Capital Expenditures $75 to $85 $80 to $90 Conference Call As previously announced, PAETEC will host a conference call with the investment community today at 8:30 a.m. EDT. Chairman and CEO Arunas Chesonis, Chief Financial Officer Keith Wilson, and Chief Operating Officer EJ Butler, Jr., will be participating. A live webcast and a replay of the call will be available at www.paetec.com. Forward-Looking Statements Except for statements that present historical facts, this release contains "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. In some cases, you can identify these statements by such forward-looking words as "anticipate," "believe," "could," "estimate," "expect," "intend," "may," "plan," "potential," "should," "will" and "would," or similar expressions. These statements, which include PAETEC's forecasts of total revenue, adjusted EBITDA, capital expenditures, merger-related synergies and free cash flow involve known and unknown risks, uncertainties and other factors that may cause PAETEC's actual operating results, financial position, levels of activity or performance to be materially different from those expressed or implied by such forward-looking statements. Some of these risks, uncertainties and factors are discussed under the caption "Risk Factors" in PAETEC's 2006 Annual Report on Form 10-K and in PAETEC's subsequently filed SEC reports. They include, but are not limited to, the following risks, uncertainties and other factors: changes in regulation and the regulatory environment; competition in the markets in which PAETEC operates; the continued availability of necessary network elements from competitors; PAETEC's ability to manage and expand its business and execute its acquisition strategy, to adapt its product and service offerings to changes in customer preferences, and to convert its existing network to a network with more advanced technology; effects of network failures, systems breaches, natural catastrophes and other service interruptions; and PAETEC's ability to service its indebtedness and to raise capital in the future. PAETEC disclaims any obligation to update publicly any forward-looking statements, whether as a result of new information, future events or otherwise. About PAETEC PAETEC (NASDAQ GS: PAET) is personalizing business communications for medium-sized and large businesses, enterprise organizations, and institutions across the United States. We offer a comprehensive suite of IP, voice, data and Internet services, as well as enterprise communications management software, network security solutions, CPE, and managed services. For more information, visit www.paetec.com. * Adjusted EBITDA, as defined by PAETEC, represents net income before interest, provision for taxes, depreciation and amortization, change in fair value of Series A convertible redeemable preferred stock conversion rights, stock-based compensation, loss on extinguishment of debt, leveraged recapitalization costs, integration/restructuring costs and, with respect to pro forma adjusted EBITDA, loss related to investment in ETV. Free cash flow, as defined by PAETEC, consists of adjusted EBITDA less capital expenditures (purchases of property and equipment). Neither adjusted EBITDA nor free cash flow is a measurement of financial performance under accounting principles generally accepted in the United States. For additional information as to PAETEC's reasons for including these measurers, for a quantitative reconciliation of the differences between adjusted EBITDA and net loss (income), as net loss (income) is calculated in accordance with generally accepted accounting principles, and for a quantitative reconciliation of free cash flow to net cash provided by (used in) operating activities, as net cash provided by (used in) operating activities is calculated in accordance with generally accepted accounting principles, see the accompanying tables.
PAETEC Holding Corp. and Subsidiaries
Condensed Consolidated Statements of Operations
(in thousands)
Three Months Three Months Six Months
Ended June 30, Ended March 31, Ended June 30,
----------------- ----------------------------------
2007 2006 2007 2007 2006
-------- -------- --------------- ------------------
REVENUE:
Network
services
revenue $228,010 $114,030 $ 158,438 $386,448 $ 225,365
Carrier
services
revenue 37,479 21,453 27,312 64,791 42,713
Integrated
solutions
revenue 8,980 10,130 8,267 17,247 18,310
-------- -------- --------------- ------------------
TOTAL
REVENUE 274,469 145,613 194,017 468,486 286,388
COST OF SALES
(exclusive of
depreciation and
amortization
shown separately
below) 128,802 69,799 91,361 220,163 137,197
SELLING, GENERAL
AND
ADMINISTRATIVE
EXPENSES
(exclusive of
depreciation
and
amortization
shown
separately
below and
inclusive of
stock-based
compensation) 96,500 52,267 75,033 171,533 104,566
INTEGRATION/
RESTRUCTURING
COSTS 1,730 105 1,835
LEVERAGED
RECAPITALIZATION
COSTS - 14,993 - - 14,993
DEPRECIATION AND
AMORTIZATION 20,932 8,586 13,153 34,085 16,179
-------- -------- --------------- ------------------
INCOME (LOSS)
FROM OPERATIONS 26,505 (32) 14,365 40,870 13,453
CHANGE IN FAIR
VALUE OF SERIES
A CONVERTIBLE
REDEEMABLE
PREFERRED STOCK
CONVERSION RIGHT - (5,281) - - (10,777)
LOSS ON
EXTINGUISHMENT
OF DEBT - 5,081 9,834 9,834 5,081
OTHER INCOME, net (873) (1,303) (1,220) (2,093) (2,242)
INTEREST EXPENSE 18,539 4,459 14,498 33,037 7,181
-------- -------- --------------- ------------------
INCOME (LOSS)
BEFORE INCOME
TAXES 8,839 (2,988) (8,747) 92 14,210
PROVISION FOR
(BENEFIT FROM)
INCOME TAXES 2,869 2,826 (2,898) (29) 7,498
-------- -------- --------------- ------------------
NET INCOME (LOSS) $ 5,970 $(5,814) $ (5,849) $ 121 $ 6,712
======== ======== =============== ==================
PAETEC Holding Corp. and Subsidiaries
Adjusted EBITDA Reconciliation and Free Cash Flow Calculation
(in thousands)
Adjusted EBITDA, as defined by PAETEC, represents net income before
interest, provision for taxes, depreciation and amortization, change
in fair value of Series A convertible redeemable preferred stock
conversion rights, stock-based compensation, and
integration/restructuring costs, and, with respect to pro forma
adjusted EBITDA, loss related to investment in ETV. PAETEC's adjusted
EBITDA is a non-GAAP financial measure used by PAETEC's management,
together with GAAP measures such as revenue and cash flows from
operations, to assess PAETEC's historical and prospective operating
performance. Management uses adjusted EBITDA to enhance its
understanding of PAETEC's core operating performance, which
represents management's views concerning PAETEC's performance in the
ordinary ongoing and customary course of its operations.
Management also uses this measure to evaluate PAETEC's performance
relative to that of its competitors. This financial measure permits a
comparative assessment of PAETEC's operating performance, relative to
the company's performance based on its GAAP results, while isolating
the effects of certain items that may vary from period to period
without any correlation to core operating performance or that vary
widely among similar companies. The table below sets forth, for the
periods indicated, a reconciliation of the differences between
adjusted EBITDA and net (loss) income, as net (loss) income is
calculated in accordance with generally accepted accounting
principles:
Three Months Three Months Six Months
Ended June 30, Ended March 31, Ended June 30,
----------------- ----------------------------------
2007 2006 2007 2007 2006
-------- -------- --------------- ------------------
Net income (loss) $ 5,970 $(5,814) $ (5,849) $ 121 $ 6,712
Add back non-
EBITDA items
included in net
income (loss):
Depreciation
and
amortization 20,932 8,586 13,153 34,085 16,179
Interest
expense, net
of interest
income 17,648 3,778 13,264 30,912 5,977
Provision for
(benefit from)
income taxes 2,869 2,826 (2,898) (29) 7,498
-------- -------- --------------- -------- ---------
EBITDA 47,419 9,376 17,670 65,089 36,366
-------- -------- --------------- -------- ---------
Change in fair
value of Series
A convertible
redeemable
preferred stock
conversion right - (5,281) - - (10,777)
Stock-based
compensation 3,301 960 6,584 9,885 1,892
Loss on
extinguishment
of debt - 5,081 9,834 9,834 5,081
Leveraged
recapitalization
costs - 14,993 - - 14,993
Integration/
restructuring
costs 1,730 - 105 1,835 -
-------- -------- --------------- -------- ---------
Adjusted EBITDA $ 52,450 $ 25,129 $ 34,193 $ 86,643 $ 47,555
======== ======== =============== ======== =========
Purchases of
property &
equipment 20,987 9,844 12,859 33,847 17,336
-------- -------- --------------- -------- ---------
Free cash flow,
as defined $ 31,463 $ 15,285 $ 21,334 $ 52,797 $ 30,219
======== ======== =============== ======== =========
PAETEC Holding Corp. and Subsidiaries
Free Cash Flow Reconciliation
(in thousands)
Free cash flow, as defined by PAETEC, consists of adjusted EBITDA less
capital expenditures (purchases of property and equipment). Free
cash flow, as defined by us, is not a financial measurement prepared
in accordance with accounting principles generally accepted in the
United States of America, or "GAAP."
PAETEC has included data with respect to free cash flow because its
management believes free cash flow provides a measure of the cash
generated by the company's operations before giving effect to non-
cash accounting charges, changes in operating assets and liabilities,
acquisition-related items, tax items and similar items that do not
directly relate to the day-to-day cash expenses of the company's
operations and after application of capital expenditures. PAETEC's
management uses free cash flow to monitor the effect of the company's
daily operations on its cash reserves and its ability to generate
sufficient cash flow to fund PAETEC's scheduled debt maturities and
other financing activities, including potential refinancings and
retirements of debt, and other cash items.
PAETEC's management believes that consideration of free cash flow
should be supplemental, however, because free cash flow has
limitations as an analytical financial measure. These limitations
include the following:
-- free cash flow does not reflect PAETEC's cash expenditures for
scheduled debt maturities and other fixed obligations, such as
capital leases, vendor financing arrangements and the other cash
items excluded from free cash flow;
-- free cash flow is subject to variability on a quarterly basis as a
result of the timing of payments made or received related to accounts
receivable, accounts payable and other current operating assets and
liabilities; and
-- free cash flow may be calculated in a different manner by other
companies in PAETEC's industry, which limits its usefulness as a
comparative measure.
PAETEC's management compensates for these limitations by relying
primarily on its results under GAAP to evaluate its operating
performance and by considering independently the economic effects of
the foregoing items that are not reflected in free cash flow. As a
result of these limitations, free cash flow should not be considered
as an alternative to net cash provided by operating activities, cash
used in investing activities, cash provided by (used in) financing
activities or change in cash and cash equivalents as calculated in
accordance with GAAP, nor should it be used as a measure of the
amount of cash available for the payment of dividends or other
discretionary expenditures.
Following is a reconciliation of free cash flow to net cash provided
by (used in) operating activities, as such measure is defined by
GAAP:
Three Months Three Months Six Months
Ended Ended Ended
June 30, March 31, June 30,
------------------- -------------------------------
2007 2006 2007 2007 2006
--------- --------- ----------- -------------------
Free cash flow $ 31,463 $ 15,285 $ 21,334 $ 52,797 $ 30,219
Capital
expenditures 20,987 9,844 12,859 33,847 17,336
Interest expense,
net of interest
income (17,648) (3,778) (13,264) (30,912) (5,977)
Income tax
related (217) (346) 74 (143) (929)
Other (4) 49 59 55 68
Loss on
extinguishment
of debt - (826) (2,000) (2,000) (826)
Leveraged
recapitalization
costs - (12,371) - - (12,371)
Integration/
restructuring
costs (1,730) - (105) (1,835) -
Amortization of
debt issuance
costs 555 358 450 1,005 745
Changes in
operating assets
and liabilities 2,619 (11,946) (44,460) (41,841) (17,390)
--------- --------- ----------- --------- ---------
Net cash provided
by (used in)
operating
activities $ 36,025 $ (3,731) $(25,053) $ 10,972 $ 10,875
========= ========= =========== ========= =========
PAETEC Holding Corp. and Subsidiaries
Pro Forma Condensed Consolidated Statements of Operations
(Based on combination of historical results, without adjustment)
(in thousands)
Three Months Three Months Six Months
Ended June 30, Ended March 31, Ended June 30,
----------------- ---------------------------------
2007 2006 2007 2007 2006
-------- -------- -------------- -------- ---------
TOTAL REVENUE 274,469 252,296 267,576 542,045 495,868
COST OF SALES
(exclusive of
depreciation and
amortization
shown separately
below) 128,802 122,948 125,958 254,760 240,596
SELLING, GENERAL
AND
ADMINISTRATIVE
EXPENSES
(exclusive of
depreciation and
amortization
shown separately
below and
inclusive of
stock-based
compensation) 96,500 91,885 100,109 196,609 182,704
INTEGRATION/
RESTRUCTURING
COSTS 1,730 - 1,919 3,649 -
LEVERAGED
RECAPITALIZATION
COSTS - 14,993 - - 14,993
DEPRECIATION AND
AMORTIZATION 20,932 20,758 22,335 43,267 40,544
-------- -------- -------------- -------- ---------
INCOME FROM
OPERATIONS 26,505 1,712 17,255 43,760 17,031
CHANGE IN FAIR
VALUE OF SERIES A
CONVERTIBLE
REDEEMABLE
PREFERRED STOCK
CONVERSION RIGHT - (5,281) - - (10,777)
LOSS ON
EXTINGUISHMENT OF
DEBT - 5,081 9,834 9,834 5,081
OTHER INCOME, net (873) (1,303) (1,594) (2,467) (2,242)
INTEREST EXPENSE 18,539 9,326 17,999 36,538 16,593
-------- -------- -------------- -------- ---------
INCOME (LOSS)
BEFORE INCOME
TAXES 8,839 (6,111) (8,984) (145) 8,376
PROVISION FOR
(BENEFIT FROM)
INCOME TAXES 2,869 2,826 (2,897) (28) 7,498
-------- -------- -------------- -------- ---------
NET INCOME (LOSS) $ 5,970 $(8,937) $ (6,087) $ (117) $ 878
======== ======== ============== ======== =========
PAETEC Holding Corp. and Subsidiaries
Pro Forma Adjusted EBITDA Reconciliation
(Based on combination of historical results, without adjustment)
(in thousands)
The table below sets forth, for the periods indicated, a
reconciliation of the differences between pro forma adjusted EBITDA
and pro forma net income (loss), as pro forma net income (loss) is
calculated based on the combination of historical results of PAETEC
Holding and its predecessor and of US LEC for such periods.
Three Months Three Months Six Months
Ended June 30, Ended March 31, Ended June 30,
----------------- ---------------------------------
2007 2006 2007 2007 2006
-------- -------- -------------- ------------------
Net income (loss) $ 5,970 (8,937) $ (6,087) $ (117) 878
Add back non-
EBITDA items
included in net
income (loss):
Depreciation and
amortization 20,932 20,758 22,335 43,267 40,544
Interest
expense, net of
interest income 17,648 8,645 16,427 34,075 15,389
Provision for
(benefit from)
income taxes 2,869 2,826 (2,897) (28) 7,498
-------- -------- -------------- -------- ---------
EBITDA 47,419 23,292 29,778 77,197 64,309
-------- -------- -------------- -------- ---------
Change in fair
value of Series A
convertible
redeemable
preferred stock
conversion right - (5,281) - - (10,777)
Stock-based
compensation 3,301 1,412 7,029 10,330 3,060
Loss on
extinguishment of
debt - 5,081 9,834 9,834 5,081
Leveraged
recapitalization
costs - 14,993 - - 14,993
Integration/
restructuring
costs 1,730 - 1,919 3,649 -
Loss related to
investment in ETV - 674 - - 674
-------- -------- -------------- -------- ---------
Adjusted EBITDA $ 52,450 $ 40,171 $ 48,560 $101,010 $ 77,340
======== ======== ============== ======== =========
Purchases of
property &
equipment $ 20,987 $ 16,732 $ 18,889 $ 39,877 $ 31,916
======== ======== ============== ======== =========
PAETEC Holding has omitted a quantitative reconciliation of forecasted
2007 adjusted EBITDA amounts included in this release to forecasted
2007 net income (loss), because forecasted 2007 net income (loss)
cannot be calculated with reasonable accuracy until, among other
matters, PAETEC Holding finalizes adjustments under the purchase
method of accounting for the US LEC merger and until it completes its
analysis of limitations that may be placed on its ability to use net
operating loss carryforwards under Section 382 of the Internal
Revenue Code. The manner in which each of these items is finalized
may have a material affect on PAETEC Holding's net income (loss) for
2007.
PAETEC Holding Corp. and Subsidiaries
Selected Financial and Operating Data
( in thousands)
June 30, 2007 December 31, 2006
------------- -----------------
Consolidated Balance Sheet Data:
(in thousands)
Cash and cash equivalents $ 84,456 $ 46,885
Accounts receivable, net 138,014 79,740
Property and equipment, net 291,273 167,566
Accounts payable $ 38,999 $ 27,321
Other accrued expenses 84,790 43,824
Current portion of long-term debt 5,072 2,856
Long-term debt 793,026 370,930
Operating Data
(as of period end):
Geographic markets served 52 29
Number of switches deployed 40 13
Total digital T1 transmission lines
installed 110,473 52,371
Total access line equivalents
installed 2,651,352 1,256,904
Total employees 2,258 1,312
CONTACT: Media:
PAETEC
Chris Muller, 585-340-8218
chris.muller@paetec.com
or
Edelman
Michael McCullough, 404-832-6782
michael.mccullough@edelman.com
or
Investors:
PAETEC
Tom Morabito, 585-340-5413
tom.morabito@paetec.com
SOURCE: PAETEC Holding Corp.
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