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5 th Annual Communications Conference September 11, 2007. Safe Harbor.
The statements in this presentation are “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. Such statements are based on current expectations, are not strictly historical statements, and may differ materially from actual results. Forward looking statements include without limitation, those regarding management\'s plans, goals, expectations, guidance, objectives, strategy, and timing for future operations and products such as product plans and performance, predictions or expectations of future growth, management\'s assessment of market factors, currency exchange rates, the availability of financing and future financial performance. Among factors that could cause actual results to differ materially are changes in business conditions, including changes in the telecommunications or Internet industry or the general economy or capital markets; DSL, Internet, Voice over Internet Protocol (“VoIP”) and fixed line and wireless telecom competition; changes in service offerings or business strategies; fluctuations in currency exchange rates; difficulty in provisioning VoIP, DSL and data services; changes in the regulatory schemes and regulatory enforcement in the markets in which we operate; restrictions on our ability to follow certain strategies or complete certain transactions as a result of our capital structure or debt covenants; the possible inability to raise capital when needed, or at all; the inability to reduce debt significantly; risks associated with PRIMUS\'s limited DSL, Internet, data and web-hosting experience and expertise, entry into developing markets, the possible inability to hire and/or retain qualified sales, technical and other personnel; and risks associated with international operations (including foreign currency translation risks); dependence on effective information systems; dependence on third parties to enable us to expand and manage our global network and operations; and dependence on the performance of PRIMUS\'s global communications network. These factors are discussed more fully in PRIMUS\'s public filings, including its most recent 10Q and 10K filings with the Securities and Exchange Commission. Readers are cautioned not to place undue reliance on these forward-looking statements which speak only as of the date these statements were made. PRIMUS disclaims any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.
We are a global, facilities-based, integrated communications service provider of bundled voice, VoIP, Internet and data hosting services to retail customers in select major international markets
$210 MM/Year Revenue Run Rate with Expanding Margins
Goal: To generate quarter-over-quarter revenue and margin growth from these services that more than off-sets decline of legacy, high-margin, stand-alone services
($ in millions)
Interest Expense, net
Free Cash Flow
$571Annual Financial Summary
(1) Adjusted EBITDA defined as Net Income plus Interest Expense, Income Tax Expense, Depreciation and Amortization, Non-cash compensation Expense,
Loss on Sale of Assets, Asset Impairment Write-down, and Equity investment Write-off and loss; minus (Gain) Loss on Early Extinguishment of Debt, Foreign
Currency Transaction, Extraordinary Items, and Interest Income and Other Income. 2006 EBITDA includes $4MM non-recurring, non-cash restructuring charge
related to PrePaid Services business (Q206) and $1.5MM non-cash compensation expense.
(2) Free cash flow defined as net cash provided by (used in) operating activities less Capital Expenditures.
(1) Adjusted EBITDA defined as Net Income plus Interest Expense, Income Tax Expense, Depreciation and Amortization, Non-cash
compensation Expense, Loss on Sale of Assets, Asset Impairment Write-down, and Equity investment Write-off and loss; minus (Gain) Loss on
Early Extinguishment of Debt, Foreign Currency Transaction, Extraordinary Items, and Interest Income and Other Income.All EBITDA figures
exclude results of Primus India which was sold in Q206. Q206 EBITDA includes $4MM non-recurring, non-cash restructuring charge related to
Prepaid Services business and $1.5MM non-cash compensation expense.
($ in millions)Capital Investments
12.75% Senior Notes due Oct 2009 (1)
3.75% Convertible Senior Notes due Sept 2010
Future Debt Maturities
7.00% Step-Up Debentures due Aug 2009 (2)
Total PTGI Debt
8.00% Senior Notes due Jan 2014
Senior Secured Term Loan due Feb 2011
5.00% Exchangeable Notes due June 2010 (3)
Total PTHI Debt
($ in millions)
14.25% Second Lien Notes due May 2011
Total PTIHC Debt
Operating Subsidiary Debt:
Canadian Credit Facility due March 2012
(As of June 30, 2007)
Vendor Financing and Other Debt
Total Subsidiary Debt
(1) Includes Q3 2007 repurchase of $3.2 Million
(2) Convertible into equity of $1.187/share if Primus stock trades above $1.78 for 20 days in any 30 consecutive day trading period
(3) Convertible into equity at $1.20/share if Primus stock trades above $1.80 for 20 days in any 30 consecutive day trading periodCurrent Debt Structure and Maturities