SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
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FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the
Securities Exchange Act of 1934
Date of Report (Date of earliest event reported): June 5, 2001
QWEST COMMUNICATIONS INTERNATIONAL INC.
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(Exact name of registrant as specified in its charter)
Delaware
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(State or other jurisdiction of incorporation)
000-22609 84-1339282
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(Commission File Number) (IRS Employer Identification No.)
1801 California Street Denver, Colorado 80202
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(Address of principal executive offices) (Zip Code)
Registrant's telephone number, including area code: 303-992-1400
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Not applicable
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(Former name or former address, if changed since last report)
ITEM 5. Other Events
On June 5, 2001, Joseph P. Nacchio, Chairman and Chief Executive Officer of
Qwest Communications International Inc. ("Qwest"), is speaking with investors at
the Sanford Bernstein "Strategic Decisions" conference. At the meeting, Mr.
Nacchio is expected to state the following, among other things:
o Demand for services remains strong across all of Qwest's business units,
including Internet-based applications and services.
o Qwest is benefiting from stabilizing pricing in the communications
industry. Qwest expects to meet previously announced financial targets even
with reduced levels of capital expenditures.
o Based on his review of Qwest's results for April 2001, he is comfortable
with previously announced guidance of (1) revenue growth of between 12% and
13% for the 2nd quarter of 2001 over pro forma normalized revenues for the
2nd quarter of 2000, (2) 2001 revenues of $21.3 billion to $21.7 billion (a
12.5% to 14.5% increase over pro forma normalized revenues for 2000), and
(3) 2001 EBITDA (earnings before interest, taxes, depreciation and
amortization) of $8.5 billion to $8.7 billion (a 15% to 18% increase over
pro forma normalized EBITDA for 2000).
o Qwest continues to look for ways to further improve cash flow.
o On April 24, 2001, Qwest lowered its guidance for capital expenditures for
2001 from $9.5 billion to $9.2 billion.
o Qwest is looking at ways for further reduce expected capital expenditures
to between $8.8 billion and $9.0 billion for 2001, and to as low as $8.0
billion for 2002.
o The potential to further reduce capital spending is a result of multiple
efforts including:
o Improved buying power for communications equipment through favorable
pricing, volume discounts, and re-negotiation of strategic contracts;
o Better use of assets through inventory management, more equipment and
facilities placed in service on a "just-in-time" basis, and
maximizing use of facilities;
o Business process improvements such as more cost-effectively designing
transmission and hosting capacity;
o Completion of Qwest's 25-city construction of DLEC (Digital Local
Exchange Carrier) facilities for high-speed Internet service to
businesses seven months ahead of schedule and below the capital
budget for the project; the DLEC facilities are outside of Qwest's
14-state local service area;
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o Reduced investments required beyond 2001 for Section 271 approval for
Qwest to re-enter the long-distance business in its 14-state local
service territory; and
o Additional merger synergies for network equipment and distribution
operations.
o Qwest has previously announced that it expects to become free cash flow
positive (on an after-tax basis) for the 4th quarter of 2002 and for the
entire year 2003. Qwest is looking at ways to become free cash flow
positive in an earlier quarter of 2002, and possibly for the entire year
2002.
Forward Looking Statements Warning
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This Current Report on Form 8-K contains projections and other forward-looking
statements that involve risks and uncertainties. These statements may differ
materially from actual future events or results. Readers are referred to the
documents filed by Qwest with the Securities and Exchange Commission,
specifically the most recent reports which identify important risk factors that
could cause actual results to differ from those contained in the forward-looking
statements, including potential fluctuations in quarterly results, volatility of
Qwest's stock price, intense competition in the communications services market,
changes in demand for Qwest's products and services, dependence on new product
development and acceleration of the deployment of advanced new services, such as
broadband data, wireless and video services, which could require substantial
expenditure of financial and other resources in excess of contemplated levels,
rapid and significant changes in technology and markets, adverse changes in the
regulatory or legislative environment affecting Qwest's business and delays in
Qwest's ability to provide interLATA services within its 14-state local service
territory, failure to maintain rights of way, and failure to achieve the
projected synergies and financial results expected to result from the
acquisition of U S WEST, Inc. timely or at all and difficulties in combining the
operations of Qwest and U S WEST. The information contained in this Current
Report on Form 8-K is a statement of Qwest's present intention and is based
upon, among other things, the existing regulatory environment, conditions in the
industry and economy generally and market conditions and prices. Qwest may
change its intentions, at any time and without notice, based upon any changes in
such factors, in Qwest's assumptions or otherwise. This Current Report on Form
8-K includes analysts' estimates and other information prepared by third parties
for which Qwest assumes no responsibility. Qwest undertakes no obligation to
review or confirm analysts' expectations or estimates or to release publicly any
revisions to any forward-looking statements to reflect events or circumstances
after the date hereof or to reflect the occurrence of unanticipated events.
By including any information in this Current Report on Form 8-K, Qwest does not
necessarily acknowledge that disclosure of such information is required by
applicable law or that the information is material.
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SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, Qwest has
duly caused this report to be signed on its behalf by the undersigned thereunto
duly authorized.
QWEST COMMUNICATIONS INTERNATIONAL INC.
DATE: June 5, 2001 By: /s/ Yash A. Rana
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Yash A. Rana
Vice President
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