EXHIBIT 99.1
Description of Slides Accompanying the Company's February 21, 2001 Financial
Guidance Conference Call.
Slide 01
Large McLeodUSA logo.
Slide 02
Today's Overview . . .
. 2001 Targets
. Opportunities/Challenges
. Key Metrics
. Execution
McLeodUSA logo. . . . 2001 highlights
Slide 03
Our priorities . . .
. Getting and Keeping Customers
. One Functional Network (OFN)
. Staged, Disciplined Growth
McLeodUSA logo. . . . are unchanged
Slide 04
Reaffirming 2001 . . .
[Centered on the slide are two pie charts side by side. On the left is a pie
chart representing "80% Competitive Telecom", "15% Publishing"; "4% Local
Exchange" and "1% Other". Above the pie chart is the text "Revenue $2.1
Billion". On the right is a pie chart representing "59% Competitive Telecom",
"27% Publishing", and "14% Local Exchange". Above the pie chart is the text
"EBITDA $225 Million". Centered above both pie charts is the text "2001E".]
McLeodUSA logo. . . . revenue up 50%, EBITDA up 270%
5
Slide 05
Continue Assessing and Managing . . .
+/- Wholesale/ISP Revenues
+/- Local/LD Rates
+/- Access Charges/Recip Comp
+/- Faster/Deeper Retail (Voice/Data)
+/- Focus (Streamline) Core Assets
McLeodUSA logo. . . . opportunities and challenges
Slide 06
Platform and Production Growth . . .
Q400 Q101 Q201 YE01 % Growth
------- ------- ------- ------- --------
Metrics
- -------
Route Miles 21,600 23,600 24,300 29,600 37%
C.O.s (leased) 1,368 1,500 1,750 1,900 39%
Colos 305 321 380 418 37%
DSLAMs 334 390 460 468 38%
Data/Mesh Switches 396 400 403 413 4%
Voice Switches 50 52 60 60 20%
Customers (000) 308 344 395 527 71%
Churn 0.5% 0.5% 0.5% 0.5% 0%
Sales Headcount 1,250 1,600 2,000 2,000+ 60%
McLeodUSA logo. . . . ramp revenue and EBITDA growth
Slide 07
Revenue and EBITDA Growth . . .
Q400 Q101 Q201 2H01 YE01 % Growth
---- ---- ---- ------ ------ --------
Financials
- ----------
Revenue (MM) $410 $430 $490 $1,180 $2,100 50%
EBITDA (MM) $ 26 $ 22 $ 33 $ 170 $ 225 270%
CapEx (MM) $350 $350 $250 $ 400 $1,000 -----
McLeodUSA logo. . . . impressive
Slide 08
Service Platforms . . .
Average Average Average
Centrex* UNE* UNE-M
--------- -------- -------
Revenues $ 61.78 $ 67.83 $ 67.83
CGS/SG&A $ 53.93 $ 51.85 $ 49.77
EBITDA $ 7.86 $ 15.98 $ 18.06
Cust. Acquisition Cost/CAPEX $350.00 $769.00 $350.00
Months to Recover 45 48 19
Months to Recover (DCF) 58 62 20
* Rates Pre Qwest Agreement Oct. 2000
McLeodUSA logo. . . . improving economics
6
Slide 09
Net, Net . . .
. Fortifying Facilities (OFN)
. Enabling Full Suite of Products (Local/LD/Data)
. Managing Opportunities and Challenges
. Continue Focused, Disciplined Execution
McLeodUSA logo. . . . customer, OFN, execution
Slide 10
Safe Harbor
Some of the statements contained in this slide presentation 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. Important factors that could cause
actual events or results 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, our developments in the industry, changes in the
competitive climate in which we operate and the emergence of future
opportunities. These and other applicable risks are summarized under "Risk
Factors" in the McLeodUSA 424B Prospectus Supplement filed with the Securities
and Exchange Commission on January 8, 2001.
McLeodUSA logo.
7