McLeodUSA says 4Q will meet or beat estimates

(Telephony) Despite the beating CLECs continue to take in financial markets, McLeodUSA today announced it anticipates meeting or exceeding expectations for its fourth-quarter and 2000 year-end earnings.

For the fourth quarter 2000, McLeodUSA expects to exceed $408 million in revenue with a positive EBITDA exceeding $26 million. With these numbers, the company should end 2000 with revenues of more than $1.395 billion and an EBITDA exceeding $60 million. Official figures for the Cedar Rapids, Iowa-based telecom company are scheduled to be released Jan. 31.

If met, these numbers would mark the 19th quarter in the company’s nine-year history that it has met or exceeded expectations. It’s also the 13th consecutive quarter with a positive EBITDA. McLeodUSA’s focused business plan and strong management practices to meet goals are keys to the continued success, according to Chairman and CEO Clark E. McLeod.

“Our plan is to focus on getting share, getting customers and keeping customers,” McLeod said. “The ability to execute is really the key to having a successful company in this arena that is filled with opportunity.”

President and Chief Operating Officer Stephen C. Gray echoed this opinion.

“The fundamentals of McLeodUSA have never been stronger from one, a people perspective; two, an asset perspective; and then third, an execution perspective, both operationally and financially,” Gray said.

Gray also said the fourth-quarter figures were particularly impressive because McLeodUSA showed better results despite a shortened quarter, using only used 90-93% of the normal business days in a calendar quarter. Also announced today is that Gray will share the CEO title with McLeod effective immediately. Although his title is now president and co-CEO, Gray’s job description will remain the same.

McLeod said he is optimistic about 2001 and that his company will continue to innovate.

“We’ve been almost boring with our predictability as it relates to meeting or exceeding the numbers,” McLeod said. “Our company has really stepped to the forefront of our industry. As leaders in the industry, we need to step up our own game in 2001.”