-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: keymaster@town.hall.org Originator-Key-Asymmetric: MFkwCgYEVQgBAQICAgADSwAwSAJBALeWW4xDV4i7+b6+UyPn5RtObb1cJ7VkACDq pKb9/DClgTKIm08lCfoilvi9Wl4SODbR1+1waHhiGmeZO8OdgLUCAwEAAQ== MIC-Info: RSA-MD5,RSA, G4Ac2hH3o0x9DNsIEgWjsFiWNqbc3sF6b402wf4A/QQ5epz5e24zFRTSlmRlK11f sRorfGdDoxMx7xRKtF1JgA== 0000950170-95-000132.txt : 19950727 0000950170-95-000132.hdr.sgml : 19950727 ACCESSION NUMBER: 0000950170-95-000132 CONFORMED SUBMISSION TYPE: 8-K/A PUBLIC DOCUMENT COUNT: 4 CONFORMED PERIOD OF REPORT: 19940623 ITEM INFORMATION: Financial statements and exhibits FILED AS OF DATE: 19950726 SROS: NASD FILER: COMPANY DATA: COMPANY CONFORMED NAME: PEOPLES TELEPHONE COMPANY INC CENTRAL INDEX KEY: 0000819694 STANDARD INDUSTRIAL CLASSIFICATION: COMMUNICATION SERVICES, NEC [4899] IRS NUMBER: 132626435 STATE OF INCORPORATION: NY FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 8-K/A SEC ACT: 1934 Act SEC FILE NUMBER: 000-16479 FILM NUMBER: 95556187 BUSINESS ADDRESS: STREET 1: 2300 NORTHWEST 89TH PL CITY: MIAMI STATE: FL ZIP: 33172 BUSINESS PHONE: 3055939667 MAIL ADDRESS: STREET 2: 2300 NORTHWEST 89TH PLACE CITY: MIAMI STATE: FL ZIP: 33172 8-K/A 1 AMENDMENT NO. 2 SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 ------------------------------ FORM 8-K/A NO. 2 CURRENT REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 DATE OF EARLIEST EVENT REPORTED: JUNE 23, 1994 PEOPLES TELEPHONE COMPANY, INC. (Exact name of registrant as specified in its charter) NEW YORK 0-16479 13-2626435 (State or other juris- (Commission File (IRS Employer diction of incorporation) Number) I.D. No.) 2300 N.W. 89TH PLACE, MIAMI, FLORIDA 33172 (Address of principal executive office) (Zip Code) REGISTRANT'S TELEPHONE NUMBER, INCLUDING AREA CODE: (305) 593-9667 I. ITEM 7 OF THE FORM 8K/A NO. 1 OF PEOPLES TELEPHONE COMPANY, INC. FOR JUNE 23, 1994 FILED SEPTEMBER 6, 1994, IS HEREBY AMENDED IN ITS ENTIRETY TO READ AS FOLLOWS: ITEM 7. FINANCIAL STATEMENTS AND EXHIBITS (a) Financial statements of business acquired. The audited financial statements of Atlantic Telco Joint Venture ("Atlantic Telco") for the period from January 1, 1992 through December 31, 1993 were previously filed with the Commission as part of the Form 8-K/A No. 1 on September 6, 1994. The unaudited interim financial statements of Atlantic Telco as of and for the three months ended March 31, 1994 and 1993, are attached hereto as Exhibit 99.1 and incorporated into this Amendment No. 2 to Current Report on Form 8-K. (b) Pro Forma Financial Information. The combined pro forma financial statements (unaudited) of Atlantic Telco and the Registrant are attached hereto as Exhibit 99.2 and incorporated into this Amendment No. 2 to Current Report on Form 8-K. (c) Exhibits. 99.1 The unaudited Financial Statements of Atlantic Telco for the period as of and for the three months ended March 31, 1994 and 1993. 99.2 The combined pro forma financial statements (unaudited) of Atlantic Telco and the Registrant. 99.3 Independent Auditor's Report of Atlantic Telco Joint Venture for December 31, 1993 and 1992. 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 thereunto duly authorized. PEOPLES TELEPHONE COMPANY, INC. REGISTRANT DATE: JULY 26, 1995 \S\ BONNIE S. BIUMI ------------------------------- BONNIE S. BIUMI CHIEF FINANCIAL OFFICER EX-99.1 2 EXHIBIT 99.1 FINANCIAL STATEMENTS ATLANTIC TELCO JOINT VENTURE BALANCE SHEETS (UNAUDITED, IN THOUSANDS) ASSETS 3/31/94 12/31/93 ------- -------- Current assets: Cash and cash equivalents. . . . . . . . . . . $ 887 $1,009 Accounts receivable, net of allowance for doubtful accounts . . . . . . . . . . . . . . 315 339 Inventory. . . . . . . . . . . . . . . . . . . 375 373 Prepaid expenses and other current assets. . . 24 32 ------ ------ Total current assets. . . . . . . . . . . . 1,601 1,753 Property and equipment, net . . . . . . . . . . . 4,474 4,594 ------ ------ Total assets. . . . . . . . . . . . . . . . $6,075 $6,347 ====== ====== LIABILITIES AND SHAREHOLDERS' EQUITY Current liabilities: Accounts payable and accrued expenses. . . . . $ 807 $ 798 ------ ------ Total current liabilities . . . . . . . . . 807 798 Notes payable and long term debt. . . . . . . . . 3,025 3,310 ------ ------ Total liabilities . . . . . . . . . . . . . 3,832 4,108 ------ ------ Commitments and contingencies . . . . . . . . . . - - Shareholders' equity: Capital. . . . . . . . . . . . . . . . . . . . 2,015 2,239 Retained earnings. . . . . . . . . . . . . . . 228 - ------ ------ Total shareholders' equity. . . . . . . . . 2,243 2,239 ------ ------ Total liabilities and shareholders' equity . . . . . . . . . . . . . . . . . . $6,075 $6,347 ====== ====== The accompanying notes are an integral part of these financial statements. ATLANTIC TELCO JOINT VENTURE STATEMENTS OF INCOME (UNAUDITED, IN THOUSANDS) THREE MONTHS ENDED, ------------------- 3/31/94 3/31/93 ------- ------- Revenues: Coin calls . . . . . . . . . . . . . . . . . . . $1,951 $1,787 Non-coin calls . . . . . . . . . . . . . . . . . 464 498 Service and other. . . . . . . . . . . . . . . . 9 476 ------ ------ Total revenues. . . . . . . . . . . . . . . . 2,424 2,761 ------ ------ Costs and expenses: Telephone charges. . . . . . . . . . . . . . . . 800 733 Commissions. . . . . . . . . . . . . . . . . . . 627 478 Field services and collection. . . . . . . . . . 187 183 Selling, general, and administrative . . . . . . 386 395 Depreciation and amortization. . . . . . . . . . 145 143 Interest . . . . . . . . . . . . . . . . . . . . 51 86 ------ ------ Total costs and expenses. . . . . . . . . . . 2,196 2,018 ------ ------ Income before taxes . . . . . . . . . . . . . . . 228 743 Provision for income taxes. . . . . . . . . . . . - - ------ ------ Net income. . . . . . . . . . . . . . . . . . . . $ 228 $ 743 ====== ====== The accompanying notes are an integral part of these financial statements. ATLANTIC TELCO JOINT VENTURE STATEMENTS OF CASH FLOWS (UNAUDITED, IN THOUSANDS) THREE MONTHS ENDED MARCH 31, ------------------ 1994 1993 ---- ---- Cash flows from operating activities: Net income. . . . . . . . . . . . . . . . . . . $ 228 $ 886 Adjustments to reconcile net income to net cash provided by operating activities: Income from cancellation of indebtedness . . . - (470) Depreciation and amortization. . . . . . . . . 145 143 Deferred income taxes. . . . . . . . . . . . . (18) (16) Changes in assets and liabilities: Decrease (increase) in trade accounts receivable. . . . . . . . . . . . . . . . . . 24 (7) Increase in inventory. . . . . . . . . . . . . (2) - Decrease (increase) in prepaid and other assets. . . . . . . . . . . . . . . . . 8 (35) Increase (decrease) in accounts payable and accrued expenses. . . . . . . . . . . . . . . 26 (69) ----- ------ Net cash provided by operating activities . 411 432 ----- ------ Cash flows from investing activities: Purchase of property and equipment . . . . . (24) (330) ----- ------ Net cash used in investing activities . . . (24) (330) ----- ------ Cash flows from financing activities: Distributions to partners. . . . . . . . . . . . (224) (500) Payment of long-term notes to bank . . . . . . . (285) (515) ----- ------ Net cash used in financing activities . . . (509) (1,015) ----- ------ Decrease in cash and cash equivalents . . . . . . (123) (913) Cash and cash equivalents, beginning of year. . . 1,009 1,629 ----- ------ Cash and cash equivalents, end of year. . . . . . $ 887 $ 716 ===== ====== The accompanying notes are an integral part of these financial statements. ATLANTIC TELCO JOINT VENTURE NOTES TO FINANCIAL STATEMENTS MARCH 31, 1994 AND MARCH 31, 1993 (UNAUDITED) NOTE 1 - UNAUDITED INTERIM INFORMATION: The accompanying interim consolidated financial data is unaudited, however, in the opinion of management, the interim data includes all adjustments, consisting of only normal recurring adjustments, necessary for a fair statement of the results for the interim periods. The results of operations for the three months ended March 31, 1994 are not necessarily indicative of the results to be expected for the year ending December 31, 1994. The interim unaudited financial statements should be read in conjunction with the audited financial statements and notes thereto for the year ended December 31, 1994. NOTE 2 - NOTES PAYABLE AND LONG-TERM DEBT: During March 1993, the venture recorded a gain on the cancellation of indebtedness of approximately $470,000. The venture repaid certain outstanding debt balances prior to the original due date for a reduced principal amount. The resulting gain is included in "service and other" revenues in the accompanying statements of income. NOTE 3 - SUBSEQUENT EVENTS: In June 1994, the venture partners sold certain assets of the venture consisting primarily of telephone equipment and the related location contracts for approximately $11.5 million in cash to Peoples Telephone Company, Inc. EX-99.2 3 EXHIBIT 99.2 PEOPLES TELEPHONE COMPANY, INC. AND ATLANTIC TELCO JOINT VENTURE COMBINED PRO FORMA FINANCIAL STATEMENTS (UNAUDITED) PEOPLES TELEPHONE COMPANY, INC. PRO FORMA FINANCIAL STATEMENTS The following unaudited pro forma financial statements give effect to the acquisition by Peoples Telephone Company, Inc. of Atlantic Telco Joint Venture in a transaction to be accounted for as a purchase. The unaudited pro forma balance sheet is based upon the individual balance sheets of Peoples Telephone Company, Inc. and Atlantic Telco Joint Venture as of March 31, 1994. The unaudited pro forma statements of income are based upon the individual statements of income of Peoples Telephone Company, Inc. and Atlantic Telco Joint Venture and combines the results of operations of Peoples Telephone Company, Inc. and Atlantic Telco Joint Venture (acquired by Peoples Telephone Company, Inc. as of June 23, 1994) for the three months ended March 31, 1994 and the year ended December 31, 1993 as if the acquisitions occurred on January 1, 1994 and 1993, respectively.
PEOPLES TELEPHONE COMPANY, INC. PRO FORMA COMBINED BALANCE SHEETS MARCH 31, 1994 (UNAUDITED, IN THOUSANDS) Peoples Telephone Atlantic Telco Pro Forma Assets Company, Inc. Joint Venture Adjustments Pro Forma ----------------- -------------- ----------- --------- Current assets: Cash and cash equivalents . . . . . . . $ 1,211 $ 887 $ (887)(b) $ 1,211 Accounts receivable, net of allowance for doubtful accounts. . . . . . . . . 23,071 315 (315)(b) 23,071 Inventory . . . . . . . . . . . . . . . 5,137 375 (18)(c) 5,494 Prepaid expenses and other current assets. . . . . . . . . . . . . 4,657 24 (24)(b) 4,657 ----------- ---------- --------- -------- Total current assets. . . . . . . . . . 34,076 1,601 (1,244) 34,433 Property and equipment, net. . . . . . . 90,257 4,474 (1,106)(c) 93,625 Location contracts, net. . . . . . . . . 27,063 - 2,250 (c) 29,313 Goodwill, net. . . . . . . . . . . . . . 12,105 - 5,525 (d) 17,630 Other assets, net. . . . . . . . . . . . 19,181 - - 19,181 ----------- ---------- --------- -------- Total assets . . . . . . . . . . . . . $ 182,682 $ 6,075 $ 5,425 $194,182 =========== ========== ========= ======== Liabilities and Shareholders' Equity Current liabilities: Accounts payable and accrued expenses . $ 16,951 807 (307)(b) $ 17,451 Other current liabilities . . . . . . . 6,623 - - 6,623 ----------- ---------- --------- -------- Total current liabilities. . . . . . . 23,574 807 (307)(b) 24,074 Notes payable and long term debt . . . . 84,415 3,025 7,975 (a) 95,415 Other long term liabilities. . . . . . . 5,740 - - 5,740 ----------- ---------- --------- -------- Total liabilities. . . . . . . . . . . 113,729 3,832 7,668 125,229 ----------- ---------- --------- -------- Shareholders' equity: Atlantic Telco's equity . . . . . . . . - 2,243 (2,243)(e) - Common stock. . . . . . . . . . . . . . 158 - - 158 Capital in excess of par value. . . . . 59,057 - - 59,057 Retained earnings . . . . . . . . . . . 9,738 - - 9,738 ----------- ---------- --------- -------- Total shareholders' equity . . . . . . 68,953 2,2436 (2,243) 68,953 ----------- ---------- --------- -------- Total liabilities and shareholders' equity. . . . . . . . . . . . . . . . $ 182,682 $ 6,075 $ 5,425 $194,182 =========== ========== ========= ======== - -------------- NOTE 1 - The pro forma balance sheet has been prepared to reflect the acquisition of Atlantic Telco Joint Venture by Peoples Telephone Company, Inc. for an aggregate price of $11.5 million. Pro forma adjustments are made to reflect the following: (a) The draw down of $11 million from the line of credit combined with the elimination of $3 million in debt not acquired. (b) The elimination of assets and liabilities not acquired. (c) The net asset of Atlantic Telco Joint Venture at estimate fair value at the acquisition date. (d) The excess of acquisition cost over the fair value of net assets acquired (goodwill); and (e) The elimination of Atlantic Telco Joint Venture's equity.
PEOPLES TELEPHONE COMPANY, INC. PRO FORMA CONSOLIDATED STATEMENTS OF INCOME THREE MONTHS ENDED MARCH 31, 1994 (UNAUDITED, IN THOUSANDS EXCEPT PER SHARE DATA) Peoples Telephone Atlantic Telco Pro Forma Company, Inc. Joint Venture Adjustments Pro Forma ----------------- -------------- ----------- --------- Revenues: Coin calls $ 17,857 $ 1,951 - $19,808 Non-coin call 20,141 464 - 20,605 Gain on sale of assets 2,015 - - 2,015 Service and other 1,415 9 - 1,424 ----------- ---------- --------- ------- Total revenues 41,428 2,424 - 43,852 ----------- ---------- --------- ------- Costs and expenses: Telephone charges 16,390 800 - 17,190 Commissions 6,855 627 - 7,482 Filed services and collection 6,055 186 - 6,241 Depreciation and amortization 5,429 145 76 (a) 5,650 Selling, general, and administrative 3,685 387 - 4,072 Interest 1,525 51 142 (b) 1,718 ----------- ---------- --------- ------- Total costs and expenses 39,939 2,196 218 42,353 ----------- ---------- --------- ------- Income before taxes 1,489 228 (218) 1,499 Provision for income taxes (558) - (4)(c) (562) ----------- ---------- --------- ------- Net income $ 931 $ 228 $ (222) $ 937 =========== ========== ========= ======= Earnings per common and common equivalent share $ 0.06 $ 0.06 =========== ======= Earnings per common assuming full dilution $ 0.06 $ 0.06 =========== ======= number of shares - Primary 16,425 16,425 =========== ======= number of shares - Fully Diluted 16,425 16,425 =========== ======= NOTE 1 - The above statement has been prepared to reflect the acquisition of Atlantic Telco Joint Venture by Peoples Telephone Company, Inc. for an aggregate price of $11.5 million. Pro forma adjustments are made to reflect the following: (a) Additional depreciation and amortization from increased basis of equipment and location contracts acquired based on estimated useful lives of 10 years and 8 years, respectively, and the amortization of goodwill on a straight line basis over 20 years. (b) Additional interest charges on the $11 million drawn from Peoples Telephone Company, Inc.'s line of credit. (c) Increase in income taxes relating to the foregoing adjustments.
PEOPLES TELEPHONE COMPANY, INC. PRO FORMA CONSOLIDATED STATEMENTS OF INCOME YEAR ENDED DECEMBER 31, 1993 (UNAUDITED, IN THOUSANDS EXCEPT PER SHARE DATA) Peoples Telephone Atlantic Telco Pro Forma Company, Inc. Joint Venture Adjustments Pro Forma ----------------- -------------- ----------- --------- Revenues: Coin calls. . . . . . . . . . . . $ 56,607 $ 8,313 - $ 64,920 Non-coin calls. . . . . . . . . . 63,286 2,411 - 65,697 Service and other . . . . . . . . 1,924 470 - 2,394 ----------- --------- --------- -------- Total revenues . . . . . . . . . 121,817 11,194 - 133,011 ----------- --------- --------- -------- Costs and expenses: Telephone charges . . . . . . . . 40,907 3,357 - 44,264 Commissions . . . . . . . . . . . 25,074 2,541 - 27,615 Field services and collection . . 16,628 877 - 17,505 Depreciation and amortization . . 16,109 571 315 (a) 16,995 Selling, general, and administrative . . . . . . . . . 11,708 1,802 - 13,510 Interest. . . . . . . . . . . . . 3,345 281 434 (b) 4,060 ----------- --------- --------- -------- Total costs and expenses . . . . 113,771 9,429 749 123,949 ----------- --------- --------- -------- Income before taxes. . . . . . . . 8,046 1,765 (749) 9,062 Provision for income taxes . . . . (3,031) (10) (373)(c) (3,414) Minority interest, net . . . . . . 327 - - 327 ----------- --------- --------- -------- Net income . . . . . . . . . . . . $ 5,342 $ 1,755 $ (1,122) $ 5,975 =========== ========= ========= ======== Earnings per common and common equivalent share. . . . . . . . . $ 0.37 $ 0.41 =========== ======== Earnings per common assuming full dilution. . . . . . . . . . . . . $ 0.37 $ 0.41 =========== ======== number of shares - Primary . . . . 14,479 14,479 =========== ======== number of shares - Fully Diluted . 14,517 14,517 =========== ======== NOTE 1 - The above statement has been prepared to reflect the acquisition of Atlantic Telco Joint Venture by peoples Telephone Company, Inc. for an aggregate price of $11.5 million. Pro forma adjustments are made to reflect the following: (a) Additional annual depreciation and amortization from increased basis of equipment and location contracts acquired based on estimated useful lives of 10 years and 8 years, respectively, and the amortization of goodwill on a straight line basis over 20 years. (b) Additional annual interest charges on the $11 million drawn from Peoples Telephone Company, Inc.'s line of credit. (c) Increase in income taxes relating to the foregoing adjustments.
EX-99.3 4 EXHIBIT 99.3 INDEPENDENT AUDITOR'S REPORT ATLANTIC TELCO JOINT VENTURE DECEMBER 31, 1993 Freidkin, Matrone & Horn, P.A. Certified Public Accountants 6163 Executive Boulevard Rockville, Maryland 20852 (301) 770-3750 Independent Auditor's Report To the Ventureres Atlantic Telco Joint Venture Washington, D.C. We have audited the accompanying balance sheets of Atlantic Telco Joint Venture as of December 31, 1993 and 1992, and the related statements of income, venturers' capital (deficit), and cash flows for the years then ended. These financial statements are the responsibility of the Company's management. Our responsibility is to express an opinion on these financial statements based on our audits. We conducted our audits in accordance with generally accepted auditing standards. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audits provide a reasonable basis for our opinion. In our opinion, the financial statements referred to above present fairly, in all material respects, the financial position of Atlantic Telco Joint Venture as of December 31, 1993 and 1992, and the results of its operations and its cash flows for the years then ended in conformity with generally accepted accounting principles. FREIDKIN, MATRONE & HORN, P.A. February 18, 1994 -----END PRIVACY-ENHANCED MESSAGE-----