0000817632-95-000013.txt : 19950815 0000817632-95-000013.hdr.sgml : 19950815 ACCESSION NUMBER: 0000817632-95-000013 CONFORMED SUBMISSION TYPE: 10-Q PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 19950630 FILED AS OF DATE: 19950814 SROS: NASD FILER: COMPANY DATA: COMPANY CONFORMED NAME: SHARED TECHNOLOGIES INC CENTRAL INDEX KEY: 0000817632 STANDARD INDUSTRIAL CLASSIFICATION: SERVICES-TELEPHONE INTERCONNECT SYSTEMS [7385] IRS NUMBER: 870424558 STATE OF INCORPORATION: DE FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 10-Q SEC ACT: 1934 Act SEC FILE NUMBER: 000-17366 FILM NUMBER: 95563151 BUSINESS ADDRESS: STREET 1: 100 GREAT MEADOW RD STREET 2: STE 104 CITY: WETHERSFIELD STATE: CT ZIP: 06109 BUSINESS PHONE: 2032582400 MAIL ADDRESS: STREET 2: 100 GREAT MEADOW ROAD SUITE 104 CITY: WETHERSFIELD STATE: CT ZIP: 06109 10-Q 1 JUNE 30, 1995 10Q Form 10-Q SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 [X] QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15d OF THE SECURITIES AND EXCHANGE ACT OF 1934 For Quarterly Period Ended June 30, 1995 -------------- [ ] TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 Commission File Number 0-17366 ------------------------------ SHARED TECHNOLOGIES INC. ------------------------ (exact name of registrant as specified in its charter) Delaware 87-0424558 ---------- ------------- (State or other jurisdiction of (I.R.S. Employer Incorporation or organization) Identification No.) 100 Great Meadow Road, Suite 104 Wethersfield, CT 06109 ---------------------------------- (Address of principal executive offices) (203) 258-2400 ----------------- (Registrant's telephone number, including area code) Indicate by check mark whether the registrant (1) has filed all reports to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes X No _ _ _ _ ------- Indicate the number of shares outstanding of each of the issuer's classes of common stock, as of the close of the latest practicable date. Class Outstanding at August 14, 1995 ------------- --------------------------- Common Stock, $.004 par value 8,460,815 shares
PART I FINANCIAL INFORMATION PAGE -------- ---------------------- ----- Item 1. Financial Statements Consolidated Balance Sheets as of June 30, 1995 and December 31, 1994 3-4 Consolidated Statements of Operations for the six months ended June 30, 1995 and 1994 5 Consolidated Statements of Operations for the three months ended June 30, 1995 and 1994 6 Consolidated Statements of Cash Flows for the six months ended June 30, 1995 and 1994 7 Consolidated Statements of Stockholders' Equity for the six months ended June 30, 1995 8 Notes to Consolidated Financial Statements 9-11 Item 2 Management's Discussion and Analysis of Results of Operations and Financial Condition 12-13 PART II OTHER INFORMATION 14 Signature Page 15
Item 1. Financial Statements ------------------------------------ Shared Technologies Inc. Consolidated Balance Sheets June 30, 1995 and December 31, 1994 (unaudited) June 30, December 31, 1995 1994 ---------- ------------- CURRENT ASSETS: Cash $1,779,056 $172,262 Accounts receivable, less allowance for doubtful accounts of $874,550 in 1995 and $584,000 in 1994 10,752,008 8,532,770 Other current assets 1,212,216 727,375 Deferred income taxes 550,000 550,000 -------- ------- Total current assets 14,293,280 9,982,407 ------------ ------------ Equipment, at cost: Telecommunications equipment 28,487,699 26,222,732 Office and data processing equipment 5,862,616 4,995,191 ------------ ------------ 34,350,315 31,217,923 Less - Accumulated depreciation 17,152,997 15,473,023 ------------ ------------ 17,197,318 15,744,900 ------------- ------------- Other Assets 14,686,648 12,197,929 ----------- ------------ Total Assets $46,177,246 $37,925,236 -------------- ----------------- -------------- ----------------- The accompanying notes are an integral part of these consolidated financial statements.
Shared Technologies Inc. Consolidated Balance Sheets June 30, 1995 and December 31, 1994 (unaudited) June 30, December 31, 1995 1994 CURRENT LIABILITIES: Notes payable and current portion of long-term debt and capital lease obligations $2,201,365 $1,840,401 Accounts payable 9,746,134 8,191,350 Accrued expenses 2,586,859 2,381,736 Advance billings 1,276,109 1,260,158 ---------- ------------ Total current liabilities 15,810,467 13,673,645 ---------- ------------ Long-Term Debt and Capital Lease 4,168,976 2,886,365 Obligations less current portion ---------- ------------ Minority Interest in Net Assets of Subsidiaries 2,037,290 101,504 -------- --------- Redeemable Put Warrant 404,899 383,048 -------- -------- STOCKHOLDERS' EQUITY: Preferred Stock, $.01 par value: Series C, authorized 1,500,000 shares, outstanding 906,930 shares in 1995 and 1994 9,069 9,069 Series D, authorized 1,000,000 shares, outstanding 456,900 shares in 1995 and 1994 4,569 4,569 The accompanying notes are an integral part of these consolidated financial statements.
Shared Technologies Inc. Consolidated Balance Sheets June 30, 1995 and December 31, 1994 (unaudited) March 31, December 31, 1995 1994 Series E, authorized 400,000 shares, outstanding, no shares in 1995 and 400,000 shares in 1994 4,000 Series F, authorized 700,000 shares, outstanding, 700,000 shares in 1995 and 1994 7,000 7,000 Common Stock; $.004 par value, 20,000,000 shares authorized; 7,745,815 and 6,628,246 shares outstanding in 1995 and 1994 respectively 30,983 26,513 Additional paid-in capital 44,507,677 41,488,128 Accumulated deficit (20,803,684) (22,465,105) Obligations to issue common stock 1,806,500 ---------- ------------ Total stockholders' equity 23,755,614 20,880,674 ------------ ------------- Total liabilities and stockholders' $46,177,246 $37,925,236 equity -------------- ------------- -------------- ------------- The accompanying notes are an integral part of these consolidated financial statements.
Shared Technologies Inc. Consolidated Statements of Operations For the Six Months Ended June 30, 1995 and 1994 (unaudited) June 30, June 30, 1995 1994 Revenue: Shared tenant services $17,069,938 $12,348,576 Facility management services 5,349,762 751,496 Cellular services 5,290,069 3,920,910 ----------- ---------- Total Revenue 27,709,769 17,020,982 ----------- ----------- Cost of Revenue: Shared tenant services 9,580,135 6,556,558 Facility management services 4,249,913 658,294 Cellular services 3,078,697 2,115,094 ---------- ----------- Total Cost of Revenue 16,908,745 9,329,946 ---------- ----------- Gross Margin 10,801,024 7,691,036 ---------- ---------- Selling, General & Administrative Expenses: Field 7,980,538 4,746,620 Corporate 2,143,545 1,852,627 ----------- ---------- Operating Income 676,941 1,091,789 Gain on sale of subsidiary stock 1,374,544 Interest Expense (329,613) (126,349) Interest Income 71,448 37,558 Minority Interest in Net (Income) Loss of Subsidiaries 88,845 (43,080) -------- ---------- Net Income 1,882,165 959,918 Preferred Stock Dividends (198,895) (219,202) --------- ------------ Net Income Applicable to Common Stock $1,683,270 $740,716 ---------------- -------------- ---------------- -------------- Net Income Per Common Share $0.19 $0.14 -------- --------- -------- --------- Weighted Average Shares Outstanding 8,772,147 5,267,344 ------------ ----------- ------------ ----------- The accompanying notes are an integral part of these consolidated financial statements.
Shared Technologies Inc. Consolidated Statements of Operations For the Three Months Ended June 30, 1995 and 1994 (unaudited) June 30, June 30, 1995 1994 Revenue: Shared tenant services $8,736,210 $6,256,332 Facility management services 2,866,886 370,500 Cellular services 3,263,413 2,497,790 ----------- ---------- Total Revenue 14,866,509 9,124,622 ----------- ----------- Cost of Revenue: Shared tenant services 4,849,926 3,243,771 Facility management services 2,295,392 325,000 Cellular services 2,011,211 1,334,181 ---------- ----------- Total Cost of Revenue 9,156,529 4,902,952 ---------- ----------- Gross Margin 5,709,980 4,221,670 ---------- ---------- Selling, General & Administrative Expenses: Field 4,170,143 2,415,877 Corporate 1,281,506 1,022,273 ----------- ---------- Operating Income 258,331 783,520 Gain on sale of subsidiary stock 1,374,544 Interest Expense (163,281) (69,676) Interest Income 49,538 12,616 Minority Interest in Net (Income) Loss of Subsidiaries 78,302 (23,070) -------- ---------- Net Income 1,597,434 703,390 ------------ --------- Preferred Stock Dividends (99,680) (109,601) --------- ---------- Net Income Applicable to Common Stock $1,497,754 $593,789 ----------- ---------- ----------- ---------- Net Income Per Common Share $0.17 $0.11 ------ ---------- ---------- -------- Weighted Average Shares Outstanding 8,831,164 5,342,889 ---------------- ------------ ------------ ----------- The accompanying notes are an integral part of these consolidated financial statements.
Shared Technologies Inc. Consolidated Statements of Cash Flows For the Six Months Ended June 30, 1995 and 1994 (unaudited) June 30, June 30, 1995 1994 Cash Flows Provided by Operating Activities Net Income $1,882,165 $959,918 Adjustments: Gain on sale of subsidiary stock (1,374,544) Depreciation & amortization 2,071,978 1,209,082 Minority interest in net income of (88,845) 43,080 subsidiaries Change in Assets and Liabilities: Accounts receivable (1,665,068) (1,012,804) Other current assets (370,475) (457,535) Other assets (129,178) 115,805 Accounts payable 623,246 1,193,937 Accrued expenses (89,032) (259,505) Advanced billings (24,049) (16,001) ---------- ------------ Net cash provided by operating activities 836,198 1,775,977 ---------- ------------ Cash Flows Used in Investing Activities Acquisitions (2.591,940) (3,779,725) Capital expenditures (1,849,923) (1,189,971) ----------- ----------- Net cash used in investing activities (4,441,863) (4,969,696) ------------ ------------- Cash Flows From Financing Activities: Preferred stock dividends (198,895) (219,202) Proceeds from sale of subsidiary stock 3,149,175 Proceeds from borrowings 2,293,907 1,439,838 Repayments of notes payable, long- term debt and capital lease (1,195,177) (1,036,219) obligations Proceeds from sales of common stock 1,163,449 4,645,459 ---------- ---------- Net cash provided by financing activities 5,212,459 (4,829,876) ----------- ----------- Net increase (decrease) in cash 1,606,794 1,636,157 Cash, Beginning of Period 172,262 408,533 --------- ---------- Cash, End of Period $1,779,056 $2,044,690 ----------- ----------- ----------- ----------- Supplemental Disclosures of Cash Flow Information: Cash paid during the period for - Interest $279,882 $117,744 Income taxes $56,118 $5,813 Supplemental Disclosures of Noncash Investing and Financing Activities: Obligations to issue common stock in connection with acquisitions $1,806,500 ------------ -------------- ------------ -------------- Issuance of preferred stock in connection with acquisition $5,000,000 ------------ -------------- ------------ -------------- Dividend accretion on redeemable put warrant $21,849 --------- ---------- --------- ---------- The accompanying notes are an integral part of these financial statements.
Shared Technologies Inc. Consolidated Statement of Stockholders' Equity For the six months ended June 30, 1995 (unaudited) Series C Series D Preferred Preferred Shares Amount Shares Amount Balance, December 31, 1994 906,930 $9,069 456,900 $4,569 Issuance of Common Stock per obligation to issue - - - - Conversion of Series E - - - - Preferred Sale of Common Stock - - - - Common stock issued in lieu of compensation and other - - - - Net income - - - - Dividend accretion of redeemable put warrant - - - - Preferred stock dividends - - - - -------- ------- --------- ---------- Balance, June 30, 1995 906,930 $9,069 456,900 $4,569 -------- ------- -------- -------- -------- ------- -------- -------- The accompanying notes are an integral part of these consolidated financial statements.
Shared Technologies Inc. Consolidated Statement of Stockholders' Equity For the six months ended June 30, 1995 (unaudited) Series E Series F Preferred Preferred Shares Amount Shares Amount Balance, December 31, 1994 400,000 $4,000 700,000 $7,000 Issuance of Common Stock per obligation to issue - - - - Conversion of Preferred E (400,000) ($4,000) - - Sale of Common Stock - - - - Common stock issued in lieu of compensation and other - - - - Net income - - - - Dividend accretion of redeemable put warrant - - - - Preferred stock dividends - - - - -------- -------- ---------- ----------- Balance, June 30, 1995 0 $0 700,000 $7,000 --- ---- -------- --------- --- ---- -------- --------- The accompanying notes are an integral part of these consolidated financial statements.
Shared Technologies Inc. Consolidated Statement of Stockholders' Equity For the six months ended June 30, 1995 (unaudited) Common Additional Stock Paid-in Shares Amount Capital Balance, December 31, 1994 6,628,246 $26,513 $41,488,128 Issuance of Common Stock per obligation to issue 405,395 1,621 1,804,879 Conversion of Preferred E 400,000 1,600 2,400 Sale of Common Stock 300,000 1,200 1,162,249 Common stock issued in lieu of compensation and 12,174 49 50,021 other Net income - - - Dividend accretion of redeemable put warrant - - - Preferred stock dividends - - - ----------- ----------- -------------- Balance, June 30, 1995 7,745,815 $30,983 $44,507,677 ----------- ----------- -------------- ----------- ----------- -------------- The accompanying notes are an integral part of these consolidated financial statements.
Shared Technologies Inc. Consolidated Statement of Stockholders' Equity For the six months ended June 30, 1995 (unaudited) Obligations Total Accumulated to Issue Stockholders' Deficit Common Stock Equity Balance, December 31, 1994 ($22,465,105) $1,806,500 $20,880,674 Issuance of Common Stock per obligation to issue - (1,806,500) (0) Conversion of Preferred E - - 0 Sale of Common Stock - - 1,163,449 Common stock issued in lieu of compensation and - - 50,070 other Net income 1,882,165 - 1,882,165 Dividend accretion of redeemable put warrant (21,849) - (21,849) Preferred stock dividends (198,895) - (198,895) ------------- ------------ ------------- Balance, June 30, 1995 ($20,803,684) $0 $23,755,614 ------------- ------------- ------------- ------------- ------------- ------------ The accompanying notes are an integral part of these consolidated financial statements.
Shared Technologies Inc. Notes to Consolidated Financial Statements June 30, 1995 (Unaudited) 1. Basis of Presentation: The consolidated financial statements included herein have been prepared by Shared Technologies Inc. (the Company) pursuant to the rules and regulations of the Securities and Exchange Commission and reflect all adjustments, consisting only of normal recurring adjustments, which are, in the opinion of management, necessary to present a fair statement of the results for interim periods. Certain information and footnote disclosures have been omitted pursuant to such rules and regulations, although the Company believes that the disclosures are adequate to make the information presented not misleading. It is suggested that these consolidated financial statements be read in conjunction with the consolidated financial statements and the notes thereto included in the Company's December 31, 1994 report on Form 10-K. Certain reclassifications to prior year financial statements were made in order to conform to the 1995 presentation. 2. Income Taxes: The Company and its subsidiaries file a consolidated federal income tax return but generally file separate state income tax returns. As of December 31, 1994, the Company has net operating loss carryforwards for federal income tax purposes of approximately $22.7 million, which expire, if unused, from 2001 to 2007. 3. Acquisitions: In June 1994, the Company acquired all of the partnership interests in Access Telecommunication Group, L.P. and Access Telemanagement, Inc. (collectively Access). The purchase price was $9,252,000, of which $4,252,000 was paid in cash and the balance through the issuance of 400,000 shares of Series E Preferred Stock valued at $3.75 per share and 700,000 shares of Series F Preferred Stock valued at $5.00 per share. Unaudited proforma consolidated statements of operations for the six-month period ended June 30, 1994 as through the acquisition of Access had been made at the beginning of the period are as follows: 1994 Revenues $26,303,000 Net Income $1,127,000 Net Income Per Share $0.16 On June 30, 1995 the Company purchased all of the outstanding capital stock of Office Telephone Management ("OTM"). OTM provides telecommunication management services primarily to businesses located in executive office suites. The purchase price is currently allocated as follows:
Goodwill $1,945,000 Property, Plant & Equipment 1,291,000 Accounts Receivable, (net) 307,000 Inventory 109,000 Deposits 12,000 Other current assets 1,000 Debt (current and long-term) (545,000) Accounts Payable (525,000) Accrued Expense (350,000) ----------- Net Purchase Price $2,245,000 ------------ ------------
In May and June 1995, the Company's cellular subsidiary Shared Technologies Cellular, Inc. ("STC") commenced management and subsequently completed its acquisition of the outstanding capital stock of Cellular Hotline, Inc. ("Hotline") for $617,000. The $617,000 was comprised of $367,000 in cash, paid at closing, and the issuance of 50,000 shares of STC common stock. At the discretion of the former Hotline stockholders, STC is required to repurchase all or a portion of the shares for $5.00 per share, at any time during the period commencing three months and ending six months after June 19, 1995. STC has the right to repurchase all or a portion of the shares for $6.00 during the same period. Additionally at closing, STC issued options to purchase 50,000 additional shares of STC common stock, exercisable at $7.50 per share for three years. The agreement provides for additional payments based upon attaining certain levels of activation revenues, as defined, over a one year period. Pro forma financial information is not yet available. 4. Contingencies: While providing services at the Jacob K. Javits Convention Center in 1991, the Company licensed the right to provide certain public pay telephone services at the Center to Tel-A-Booth Communications, Ltd. In 1992, Tel-A-Booth filed a claim against the New York Convention Center Operating Corporation and its facilities manager, Ogden Allied Facility Management, and against the Company seeking $10,000,000 in damages for which no amounts have been provided in the accompanying consolidated financial statements. While any litigation contains an element of uncertainty, management is of the opinion based on the current status of the claim that the ultimate resolution of this matter should not have a material adverse effect upon either results of operations, cash flows or financial position of the Company. On January 17, 1995, the Company's subsidiary Shared Technologies Cellular, Inc. ("STC") filed a complaint against South (which includes its affiliates). The complaint alleges that the failure by South to disclose a certain claim constituted a breach of the asset purchase agreement. STC seeks damages and a declaratory judgment that the payment in the Company's common stock to South, pursuant to the agreement, should be reduced by the amount of any damages caused to the Company by such breach. In addition, the Company seeks indemnification from South, including requiring South to defend the Company from and against such claim. On January 27, 1995, South commenced an action against STC alleging, among other things, that STC's failure to deliver to South the Company's common stock under the asset purchase agreement constituted a breach of contract and fraud. South is seeking unspecified actual and punitive damages of not less than $10,000,000. STC sought a stay of this action and is considering depositing the Company's common stock with the Court. Although it has not received an opinion of counsel with regard to this matter, STC believes it has meritorious defenses to this action. In the event of an adverse outcome in this action, the Company does not believe that damages payable would be material unless the market value of the Company's common stock materially decreases prior to delivery thereof. In addition to the above matters, the Company is a party to various legal actions, the outcome of which, in the opinion of management, will not have a material adverse effect on the Company's financial condition and results of operations. 5. Gain on sale of subsidiary stock: In April, 1995, the Company's cellular subsidiary Shared Technologies Cellular, Inc. ("STC") completed its SB-2 filing with the Securities and Exchange Commission and became a public company. Prior to this date STC had been an approximately 86% owned subsidiary of the Company. STC sold 950,000 shares of common stock at $5.25 which generated net proceeds of $3,562,000, after underwriters' commissions and estimated offering expenses. These proceeds are intended to be used to finance marketing activities relating to STC's cellular telephone rental service ($1.15 million), repayment of indebtedness to the Company ($1.25 million), acquisition of telecommunication equipment, billing technology management information systems and centralized reservation systems ($.5 million) and the balance for working capital and general corporate purposes. The net effect on the consolidated financial statements for the second quarter was a gain of approximately $1,375,000. Item 2. Management's Discussion and Analysis of Results of Operations and Financial Condition Results of Operations --------------------- The Company's revenues rose to $27,710,000 for the six months ended June 30, 1995, an increase of $10,689,000 or 63% over the six months ended June 30, 1994. Revenues rose to $14,867,000 for the three month period ended June 30, 1995 an increase of $5,742,000 or 63% over the three month period ended June 30, 1995. Each division continued to contribute significantly to the increase in revenue. Shared tenant services (STS) increased $4,721,000 or 27%, facility management services (FMS) grew $4,598,000 or 86% and Shared technologies cellular services (STC) rose $1,370,000 or 26% for the six months ended June 30, 1995 over the six months ended June 30, 1994. The majority of the growth in STS and FMS revenue was attributable to the June 30, 1994 acquisition of Access Telecommunications Group, L.P. (Access). The growth in STC revenues was due to expanded operations through the opening of new locations and recent acquisitions. Gross margin dropped to 39% of revenue for the six months ended June 30, 1995 from 45% for the six months ended June 30, 1994. Gross margin decreased to 38% of revenue for the three months ended June 30, 1995 compared to 46% for the three months ended June 30, 1994. For the six months ended June 30, 1995, STS produced a 44% gross margin and FMS a 21% gross margin compared to 47% and 12% for the period ended June 30, 1994. For the three months ended June 30, 1995 STS produced a 45% gross margin and FMS a 21% gross margin compared to 48% and 12% for the period ended June 30, 1994. Changes in both of these division's gross margin is mainly attributable to the acquisition of Access which significantly changed the Company's revenue mix. STC gross margin dropped to 42% and 38% for the six and three months ended June 30, 1995 from 46% and 47% for the six and three months ended June 30, 1994. This drop is mainly due to the acquisition of Hotline which has historically produced lower gross margin than the core business and the 1994 second quarter World Cup cellular rentals which produced unusually high margins. The Company's overall gross margin is heavily impacted by swings in sales mix as each of the Company's three divisions produce different gross margins. FMS accounted for 19% and 22% of total sales for the six and three months ended June 30, 1995 compared to 4% for the same periods ended June 30, 1994. Since FMS produces significantly lower gross margin than STS and STC, this increase caused the Company's overall gross margin to decrease. Selling, general and administrative expenses as a percentage of revenue decreased to 37% for the six and three months ended June 30, 1995 compared to 39% and 38% for the six and three months ended June 30, 1994. The Company was able to reduce cost as a percentage of revenue through synergy's created with the Company's overall growth. This was partially offset in the last three months as STC has added overhead costs as it aggressively grows the cellular business following its April 1995 public offering. Interest expense increased by $203,000 for the six months ended June 30, 1995 over the six months ended June 30, 1994 and $94,000 for the three months ended June 30, 1995 over the three months ended June 30, 1994. This is attributable to the addition of interest bearing debt since June 1994. In late April 1995 the Company successfully completed a public offering of its cellular subsidiary's stock. Following the sale the Company's percentage of ownership dropped from 86% to 60%. The accounting treatment of the sale required the Company to record a gain of approximately $1,375,000 for six and three months ended June 30, 1995. Liquidity and Capital Resources -------------------------------- The Company's working capital deficit at June 30, 1995 was $1,517,000 compared to $3,691,00 at June 30, 1994. Stockholders' equity at June 30, 1995 was $23,756,000 compared to $19,848,000 at June 30, 1994. Net cash provided by operations decreased to $836,000 for the six months ended June 30, 1995 versus $1,776,000 for the six months ended June 30, 1994. The Company continued to utilize cash from operations to reduce the working capital deficit. The Company continued to invest in equipment at both new and existing locations. $1,850,000 was spent on capital expenditures for the six months ended June 30, 1995 compared to $1,190,000 for the six months ended June 30, 1994. The Company has also continued to expand through acquisition, investing $2,592,000 in 1995 to acquire Office Telephone Management, Inc. and Cellular Hotline, Inc. During 1994 $8,780,000 was invested to acquire Access Telecommunication Group, L.P. (Access) comprised of 3,780,000 of cash and the remaining portion in preferred stock. Cash to finance this growth and help reduce the working capital deficit was provided mainly from financing activities. During the first six months of 1995 $1,160,000 was raised from sales of new stock, $3,149,000 from an initial public offering of the Company's cellular subsidiary, and $2,294,000 from new borrowings. A portion of these proceeds were used to repay $1,195,000 in principal debt. During 1994 $4,830,000 was raised from financing activities, the majority of the proceeds came from sales of stock and new borrowings. These proceeds were used to finance the purchase of Access and repay existing debt. The Company plans to continue to reduce the working capital deficit and to expand operations throughout 1995. This growth is expected to be financed with cash from operations and new borrowings.
PART II. OTHER INFORMATION Item 6. Exhibits and Reports on Form 8-K: (a) Exhibits None (b) Reports on Form 8-K On June 30, 1995 the Company filed a Form 8-K, date of report June 19, 1995, in which, the Company reported the acquisition of Cellular Hotline, Inc. by its majority owned subsidiary Shared Technologies Cellular, Inc. On August 3, 1995 the Company filed a Form 8-K/A Amendment #3, date of report June 27, 1994, regarding its acquisition of Access Telecommunication Group, L.P.
SIGNATURE 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. SHARED TECHNOLOGIES INC. By: /s/ Vincent DiVincenzo ---------------------------- Vincent DiVincenzo Senior Vice President-Finance and Administration, Treasurer, Chief Financial Officer Date: August 14, 1995 EX-27 2 ART. 5 FDS FOR QUARTER END 10-Q
5 1,000 6-MOS DEC-31-1994 JAN-01-1995 JUN-30-1995 1779 0 11627 876 0 14293 34350 17153 46177 15810 0 31 0 21 0 46177 27710 27710 16909 16909 10124 0 330 1882 0 507 0 1375 0 1882 .19 0