SECURITIES AND EXCHANGE COMMISSION
Washington, DC 20549
FORM 8-K
CURRENT REPORT
PURSUANT TO SECTION 13 OR 15(d)
OF THE SECURITIES EXCHANGE ACT OF 1934
Date of Report June 14,2002
(Date of earliest event reported) (June 13, 2002)
CTC COMMUNICATIONS GROUP, INC.
(Exact name of registrant as specified in its charter)
Delaware 0-27505 04-3469590
(State or other jurisdiction (Commission (IRS Employer
of incorporation) File Number) Identification No.)
220 Bear Hill Rd., Waltham, Massachusetts 02451
(Address of principal executive offices) (Zip Code)
(781) 466-8080
(Registrant's telephone number including area code)
(Former name or former address if changed since last report)
Item 5. Other Events
On June 13, 2002, the Registrant issued the following press release:
CTC Reports on Recent Investor Presentations
- -CTC Provides Summary of Chief Financial Officer's June 10, 2002
Presentation and Company's May 23, 2002 Presentation to Shareholders
Waltham, Mass. June 13, 2002-CTC Communications Group Inc. (CTC)
(NASDAQ NM: CPTL) reports on recent presentations made to stockholders
and investors.
PowerPath(R) Network Updates
- -CTC's Fiber Buildout is Substantially Completed with 8,200 Miles
of Fiber installed in the Company's Northeast Footprint
- -Rehoming of CTC Customers to Fiber on Schedule for End of Second
Quarter, Effecting a Reduction in Operating Expenses by $1
Million per Month
- -Rollout Continues for Local Dial Tone Services with Metro New
York and New Jersey Scheduled to be Deployed in July
- -Processed One Million Minutes of Voice Traffic per Day in Q1 2002
over the CTC PowerPath(R) Network, Confirming Scalability of
Telcordia Softswitch
- -Future Network Evolution to all IP with Elimination of ATM,
Resulting in Improved Flexibility and Minimization of Company
Network Costs
Russ Oliver Vice President of Network Operations reported on the
network progress in which he advised that the CTC PowerPath(R) Network
continues to operate at a high level of efficiency. Mr. Oliver stated
that he is pleased with the scalability of CTC's packet architecture as
the Company continues to add customers to the network. He further
reported that over 8,200 miles of fiber have been installed in the
Company's Northeast footprint over the last two years and the fiber
buildout is substantially complete. Over the balance of this year CTC
will expand its fiber network closer to customers with additional
suburban fiber routes, which will result in improved redundancy for
CTC's customers.
Business Operational Updates
- - Seventeen Consecutive Quarters of Growth as of Quarter Ending
March 31, 2002
- -All CTC Branches are EBITDA Positive as of March 2002
- -Annualized Employee Productivity at $2 Million per Sales
Representative and $475,000 per Employee
- -Over 15,000 Medium and Larger Business Customers with Over 60,000
Locations
- -Continue to Be Pulled up Market to Larger Customers
- -Average Customer Size Over 40 Access Lines
- -Continued Success Within Vertical Markets Including, Healthcare,
Banking, Educational and Service Industries
Steve Milton President and Chief Operating Officer for CTC reported
that CTC's telecom experience makes CTC a formidable competitor in the
marketplace with the advantage of superior technology that includes
softswitching. Milton further reported that medium and larger business
customers are benefiting everyday from their relationship with CTC
through lower monthly communication expenses and dramatically improved
levels of customer service. The combination of experience, advanced
technology, cost savings to customers and dedicated service have helped
to maintain CTC as a market leader in the Northeast.
Business Model Overview
- -Introducing New Customers to PowerPath(R) Network
- -Continued Migration of Existing Customers to PowerPath(R) Network
- -Continued Introduction of New IP Based Products
- -Completing Fiber Initiative to save $1 Million per Month in
Operating Expense
- -Continuing to Maximize Off-Net Margins
- -Continue to Leverage Infrastructure to Drive SG&A Towards 20% of
Revenue
- -The Company Reached EBITDA Positive Status for Month of March
2002 Financial Guidance
- -Revenue Target $355-$370 Million
- -Margins Target Over 30%
- -EBITDA Target $32-$35 Million
- -Depreciation of $24-$26 per Quarter
- -Interest Expense of $7-$8 Million per Quarter
- -Capital Expenditures of $60-$70 Million
John Pittenger E.V.P and Chief Financial Officer of CTC reported that
the Company continues to execute a sound strategy in a difficult
operating environment. He further stated, CTC has chosen the road less
traveled, when compared to competitors and by executing an achievable
strategy, CTC will reach its objective of becoming a successful and
profitable organization.
Both of the presentations outlined within this release can be accessed
via the Company's website at www.ctcnet.com and proceeding to the
investors section.
About CTC Communications
CTC is a rapidly growing "next generation" Integrated Communications
Carrier utilizing advanced technology and providing its customers with
converged voice, data, Internet and video services on a broadband,
packet-based network, called the PowerPath(R) Network. The Company serves
medium and larger business customers from Virginia to Maine, which
includes the most robust telecommunications region in the world-the
Washington D.C. to Boston corridor. CTC was managing more than 607,000
access lines as of March 31, 2002.
CTC's Cisco Powered IP+ATM packet network and its 450 member sales and
service teams, provide contiguous marketing and technology coverage
throughout the Northeast and Mid-Atlantic States. The Company, through
its dedicated commitment to exceptional customer service, has achieved
an industry-leading market share in the Northeast. CTC can be found on
the worldwide web at www.ctcnet.com.
The statements in this press release that relate to future plans,
events or performance are forward-looking statements that involve risk
and uncertainties that could cause actual results to differ materially
from those reflected in the forward-looking statements including the
provision of local dial tone voice services, reduced costs to customers
and reduced Company operating costs, migration of customer's on-net and
improved margins and achieve forecasted numbers and become a successful
and profitable organization. Readers are, accordingly, cautioned not to
place undue reliance on these forward-looking statements. Additional
information about these risks and uncertainties is set forth in the
Company's most recent report on Forms 10-K and 10-Q. CTC undertakes no
obligation to release publicly the results of any revisions to these
forward-looking statements that may be made to reflect results, events
or circumstances after the date hereof.
# # #
Finance Contact: John Pittenger Media Contact:Alan Russell
CTC COMMUNICATIONS CTC COMMUNICATIONS
781-466-1302 (t) 781-522-8731 (t)
pitt@ctcnet.com arussell@ctcnet.com
www.ctcnet.com www.ctcnet.com
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the
Registrant has duly caused this report to be signed on its behalf by the
undersigned hereunto duly authorized on June 14, 2002.
CTC COMMUNICATIONS GROUP, INC.
By: /s/ John D. Pittenger
John D. Pittenger,
Executive Vice President, Finance and Administration