2011 company overview presentation dd
TRANSCRIPT
PAETEC: America’s Premier Alternative
to Incumbent Local Carriers
Dave Dunlap
20112011
PAETEC’s mission is to be the most customer and employee-oriented
communications provider.
“PAETEC rises above the communications service provider pack.”
Forrester Research
Agenda
Financial Highlights
Company Highlights
PAETEC’s Network
Industry Recognition
Caring Culture
Open Communication
Unmatched Service
Personalized Solutions
The PAETEC Difference
Financial Highlights
NASDAQ: PAET
Revenue – $1.6B
Adjusted EBITDA – $256.9M
Free Cash Flow – $135.4M *
* Adjusted EBITDA Less CAPEX
Company Highlights
86 of the top 100 U.S. MSAs
Over 6M access line equivalents
Approximately 4,600 employees
ISO 9001:2008 certified
Headquartered in Rochester, NY
#982 on Fortune 1000
Data Center – Conshohocken, PA
1178 ColocationsOver 150 Voice and Data Switches4 Network Operations Centers
6 Class-A Data Centers36,700 Route Miles of Fiber
PAETEC’s Network
Industry Recognition
2010: Ranked #982 on FORTUNE 1000 List
2010: Ranked #9 in 2010 and #10 in 2009 Best Large Companies to Work for in New York StateNew York State Society for Human Resource Management (NYS-SHRM)
2010: Ranked #38 of Top 125 International Training OrganizationsTraining magazine
2009: Ranked #414 in North America on Deloitte Technology Fast 500 List; one of only 22 companies over $1B to make the listDeloitte
2009: NOC Named National Back-Office Customer Service Department of the YearStevie® Awards
2008: Received Most Innovative Product Award for the Application of SIP TrunkingTelephony magazine
2008: Ranked #66 of Top 125 International Training OrganizationsTraining magazine
Corporate Values
Caring Culture
Open Communications
Unmatched Service
Personalized Solutions
Caring Culture
Community Connections
PAETEC strives to live up to our Corporate Value: Caring Culture
PAETEC offers select non-profit organizations up to 50% savings in telecommunications services through our Community Advantage program
All PAETEC senior officers serve on the board of a local charity, including: American Heart Association American Red Cross Habitat for Humanity Make-A-Wish Foundation United Way
The majority of our employees are active board members or volunteers in more than 300 charities nationwide
Open Communication
Customer Advisory Board Meeting
We Listen to Our Customers
Discuss business challenges
Build the foundation for PAETEC’s product and service investments through customer feedback
Access PAETEC senior executives
Network with peers
Customer Advisory Board Program
Regional forums with over 950 active members for knowledge sharing and relationship building between PAETEC and our customers
“I have been a CAB member for
the past three years and value the program completely. The LEGO Group truly benefits from the products, services, and actions that result from CABs.”
Joanne ZanettiLEGO Systems, Inc.
Unmatched Service
Industry-Leading Customer Satisfaction
PAETEC adopted the NPS methodology to measure the satisfaction of our customer base
PAETEC’s Q2’10 NPS is 19.8, an increase from our Q4’09 score of 18.8
Non-PAETEC company (consumer) data was gathered from the “Satmetrix 2009 Net Promoter Industry Report: Telecommunications – Local & Long Distance”
PAETEC data was gathered from Sparks Research
0
PAETEC
19.8
-15
AT&T
Telecom NPS Benchmarks
-18
Verizon
-34
Qwest
Unmatched Customer Care
70 dedicated Customer Care representatives
225 highly trained Service and NOC technicians
PAETEC strives to answer
incoming calls by a live person in 20 seconds or less
Network Operations Center – Charlotte, NC
Network Operations Center – Rochester, NY
Network Operations Center – Cedar Rapids, IA
Personalized Solutions
Industry Focus
Commonwealth of Massachusetts
Miami Dade County
State of New York
State of South Carolina
Government Government
Bank of America
Citigroup
HSBC Bank
Wachovia Securities
Financial ServicesFinancial Services
American Breast Cancer Foundation
Dartmouth Hitchcock Medical Center
Lifespan
MedStar Health
HealthcareHealthcare Hyatt
Starwood Hotels & Resorts
Tempus Resorts
The Palms South Beach Hotel
Hospitality Hospitality
Boston University
Cornell University
Georgetown University
Stanford University
Higher EducationHigher Education
Core ProductsCore Products Value-Added ServicesValue-Added Services
DataData EquipmentEquipment ApplicationsApplications Data CenterData CenterVoiceVoice
Data
MPLS VPN
Managed Router Support
Dedicated Internet Access
Transport/Access
Ethernet Local Loop
Private Line
Fixed Wireless
Security
Hosted E-mail Security
Hosted Web Security
Network Firewall
Intrusion Detection &
Prevention System (IDPS)
Managed CPE Firewall
CPE
IP Phone Systems
Routers
Integrated Access
Devices
Media Gateways
Consulting
Network Engineering
Consultation
Hardware Maintenance
Support
Financing
Equipment for Services
Equipment Rental
Software for Services
Voice
Local
Long Distance
Toll-Free
Enhanced Toll-Free
Advantage Business Lines
Direct Trunk Overflow (DTO)
Managed Fraud Protection
VoIP
Dynamic IP
Hosted IP Telephony
IP Simple
Conferencing
Audio Conferencing
Web Conferencing
Consulting
Network Diversity Engineering
Toll-Free Routing Consultation
Colocation Services
Data Backup &
Recovery
Dedicated Hosted
Server
Shared Web Hosting
PINNACLE
Enterprise
PINNACLE Online
Hosted Broadcast
Notification
Product MatrixProduct Matrix
Core ProductsCore Products Value-Added ServicesValue-Added Services
DataData EquipmentEquipment ApplicationsApplications Data CenterData CenterVoiceVoice
CommunicationsCommunications All Data All Equipment All Voice
SecuritySecurity MPLS VPN
Hosted E-mail Security
Hosted Web Security
Network Firewall
Intrusion Detection & Prevention System (IDPS)
Managed CPE Firewall
Network Engineering Consultation
Managed Fraud Protection
Managed Managed ServicesServices
Managed Router Support
Managed CPE Firewall
Network Firewall
Intrusion Detection & Prevention System (IDPS)
Colocation Services
Data Backup & Recovery
Dedicated Hosted Server
Shared Web Hosting
Hosted IP Telephony
Managed Fraud Protection
FinancingFinancing Equipment for Services
Equipment Rental
Software for Services
Business Business ContinuityContinuity
MPLS VPN
Fixed Wireless
Private Line
Network Engineering
Consultation
Hardware Maintenance Support
IP Phone Systems
Colocation Services
Data Backup & Recovery
Dedicated Hosted Server
Dynamic IP
IP Simple
Direct Trunk Overflow
Network Diversity Engineering
Toll-Free RoutingConsultation
Enhanced Toll-Free
Hosted Broadcast Notification
BusinessBusinessIntelligenceIntelligence
Managed Fraud Protection
Hosted Broadcast Notification
PINNACLE Enterprise
PINNACLE Online
All Data Center
PINNACLE Enterprise
PINNACLE Online
All Applications
SolutionsSolutions
PAETEC SolutionsPAETEC Solutions
The PAETEC Difference
National network presence
Broad product portfolio
Personalized solutions
Trusted business partner
Unmatched customer service