Integra Overview Presentation Feb10
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Transcript of Integra Overview Presentation Feb10
Local, long-distance, phone systems and Internet access
Local customer care representatives
Local management
Secure, reliable network
Primary shareholders include Goldman, Sachs & Co., Tennenbaum Capital Partners, funds managed by
Farallon Capital Management LLC, and Warburg Pincus.
Telecom Act of 1996 created opportunity to grow beyond existing service footprint
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2,200 route mile (160,000 fiber miles) metropolitan area network
Unique 4,700-mile, long haul network – one of largest in U.S.
194 Communities Served
Over 900 Lit Buildings
33 Voice Switches
11-State Service Territory
Over 130,000 Customers
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Competitive matrix showed void in service for the small and mid-sized business sector
750 or fewer employees (typically don’t have internal telecom dept.)
Service sensitive and value our differentiated strategy
Product range (eliminate multiple vendor confusion)
+ Local presence (local number, answered by real person)
+ On-net service (ability to add value and control product quality)
+ Regional networks (offensive & defensive advantages)
= Quality, user-friendly customer experience
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Local Operating Market Area (OMA) owns:
Local Customer Experience
Local network, network operations and management of all employees that “touch” the customer
Profit and loss management
All OMA personnel are under one roof in the markets – next to the customer
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Quantity
Local
Long Distance
Fax Lines
DSL
Calling Card
Call Management/Call Routing
Conference Calling
Dedicated Internet
Domain Services
Equipment Maintenance Plans
IP Addressing
Interactive Voice Response
LAN/WAN Hardware
Local/National Dial-up Internet
Managed Firewalls
Network Configuration
Network/System Monitoring
Point to Point private lines
Premise Wiring
Presence Management Integration
Soft Phones
Simple Solutions Bundle
SMTP Mail Relay
Telephone Systems
Toll Free
Unified Messaging
Video Conferencing
Voice Messaging
VPNs
Web Hosting
Web Conferencing
Wireless Networking
VoIP Telephone Systems
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Importance Rating of Seven Purchase Criteria In Choosing a Telecom Provider(10-Point scale, 10 being extremely important.)
The graph above depicts a statistical y valid rating by customers of Integra versus customers of its primary competitors on the importance of each purchase
criteria. The results are ranked – left to right – by importance rating from non-Integra customers. These results were based on a statistically valid sample of
the SME market in Integra’s geographic service area (based on zip codes that overlap Integra’s network) within the seven largest MSAs Integra serves. The
results reflect the mean rating for each company. 2009 Riley Research Associates.
Price is important, but four other service-related criteria rank higher.
Above is a graph that depicts the statistical rating by customers of each company with regard to service quality by purchase criteria, highlighting
Integra versus its primary competitors. The results are listed – left to right – by the importance rating from non-Integra customers. These results
were based on a statistically valid sample of the SME market in Integra’s geographic service area (based on zip codes that overlap Integra’s
network) within the seven largest MSAs Integra serves. The results reflect the mean rating for each company. 2009 Riley Research Associates.
Integra is the Only Telecom Provider to Exceed the Industry Average Every Category
Customer Satisfaction by Purchase Criteria(10-Point Scale, 10 being the highest)
Integra Rates #1 in Overall Customer Satisfaction
Overall Customer Satisfaction Among Major Telecom Providers
in Integra’s Seven Largest Markets(10-Point Scale, 10 being the highest)
The graph above depicts a statistical y valid rating by customers of each company with regard to overall service quality, highlighting Integra versus its primary
competitors. These results were based on a statistically valid sample of the SME market in Integra’s geographic service area (based on zip codes that overlap
Integra’s network) within the seven largest MSAs Integra serves. The results reflect the mean rating for each company. 2009 Riley Research Associates.
Note: Integra and all public companies are TTM as of 09 2009. (a) Defined as EBITDA less capex. Excluding transition capital.
Source: Company filings, Company websites, Wall Street estimates, and Integra management projections
TTM Q309 Revenue
TTM Q309 EBITDA TTM Q309 FCF (a)
($ in millions)
Margin 33.5% 32.2% 14.7% 11.0% 9.8% 17.0% 11.2% 7.3% (2.7%) (5.9%)
“In nearly 20 years of satisfaction assessment across a wide variety of
industries, Integra‟s scores are among the highest. We rarely see the
number of „10‟s‟ that we saw in the recent survey.”
~ Michael J. Riley
Research Director, Riley Research Associates
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