SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
----------------
FORM 10-Q
QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d)
OF THE SECURITIES EXCHANGE ACT OF 1934
X QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934
For the quarterly period ended June 30, 1996
---------------------------------
OR
TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934
For the transition period from to
Commission File Number 0-28262
- - --------------------------------------------------------------------------------
AMERICAN PORTABLE TELECOM, INC.
- - --------------------------------------------------------------------------------
(Exact name of registrant as specified in its charter)
Delaware 39-1706857
(State or other jurisdiction of (I.R.S. Employer Identification No.)
incorporation or organization)
8410 West Bryn Mawr, Suite 1100, Chicago, Illinois 60631
(Address of principal executive offices) (Zip Code)
Registrant's telephone number, including area code: (312) 399-4200
Indicate by check mark whether the registrant (1) has filed all reports required
to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during
the preceding 12 months (or for 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 No X
Indicate the number of shares outstanding of each of the issuer's classes of
common stock, as of the latest practicable date.
Class Outstanding at July 31, 1996
Common Shares, $1 par value 31,336,000 Shares
Series A Common Shares, $1 par value 40,000,000 Shares
- - --------------------------------------------------------------------------------
<PAGE>
AMERICAN PORTABLE TELECOM, INC.
2ND QUARTER REPORT ON FORM 10-Q
INDEX
Page No.
-------
Part I. Financial Information
Management's Discussion and Analysis of
Results of Operations and Financial Condition 2-5
Consolidated Statements of Operations -
Three Months and Six Months
Ended June 30, 1996 and 1995 6
Consolidated Statements of Cash Flows -
Six Months Ended June 30, 1996 and 1995 7
Consolidated Balance Sheets -
June 30, 1996 and December 31, 1995 8
Notes to Consolidated Financial Statements 9-10
Part II. Other Information 11
Signatures 12
<PAGE>
PART I. FINANCIAL INFORMATION
AMERICAN PORTABLE TELECOM, INC
MANAGEMENT'S DISCUSSION AND ANALYSIS OF RESULTS OF OPERATIONS
AND FINANCIAL CONDITION
RESULTS OF OPERATIONS
American Portable Telecom, Inc. (the "Company" - NASDAQ symbol: APTI), an
82.8%-owned subsidiary of Telephone and Data Systems, Inc. ("TDS"), was formed
to acquire Personal Communications Services ("PCS") licenses from the Federal
Communications Commission ("FCC"), construct PCS networks in its Metropolitan
Trading Areas ("MTAs") and offer wireless PCS communications services in these
areas.
The Company acquired eight licenses in the FCC broadband Block A and Block B PCS
auction which concluded in March, 1995. Since its acquisition of PCS licenses,
the Company has been devoting its efforts to ramp up, including recruiting an
experienced management team, developing and executing a business plan, raising
capital and designing and constructing a PCS network in each of its six primary
MTAs (Minneapolis, Tampa-St. Petersburg-Orlando, Houston, Pittsburgh, Kansas
City, and Columbus). The Company sold its Guam MTA license, receiving FCC
approval in May of 1996. The sale of the license covering the Alaska MTA has
been completed and FCC approval is expected in the third quarter of 1996. The
Company's primary focus in 1996 continues to be the development of its PCS
business in its primary MTAs and this focus will continue until the expected
launch of commercial service in 1997.
The Company is currently capitalizing, as work in process, expenditures for the
design, construction and testing of the Company's PCS networks as well as the
cost to relocate dedicated private microwave links currently operating in the
Company's spectrum in its primary MTAs. Costs associated with developing
information systems are also capitalized. The Company capitalizes interest on
its work in process expenditures and capitalized interest on the cost of the
licenses associated with its primary MTAs through December 31, 1995.
The Company's results of operations for 1996 compared to 1995 reflect primarily
increased activities undertaken to prepare the Company's MTAs for initiation of
commercial PCS services. The Company expects no operating revenues in 1996 as
commercial service is not anticipated to commence until early 1997, and expects
its net losses to increase during 1996 as the Company continues its business
development activities.
Six Months Ended 6/30/96 Compared to Six Months Ended 6/30/95.
Development costs - affiliate are management services performed by TDS and/or
affiliated companies and incurred in the development of the Company's business
plans. Development costs - affiliate, decreased $123,000 in the first half of
1996, largely as the result of a decrease of $270,000 in management services
primarily attributable to the continuing growth of the Company's management and
operating teams and ability to independently coordinate the development of its
PCS business. This decrease was partially offset by approximately $147,000 in
management services incurred in connection with the Company's initial public
offering ("IPO") in April, 1996.
Development costs - other increased $3.7 million in the first half of 1996,
primarily due to increased consulting fees incurred in the development of the
Company's business and marketing
-2-
<PAGE>
plans and legal expense incurred in the continuing effort to prepare the
Company's MTAs for commercial PCS services.
General and administrative expenses increased $8.8 million in the first half of
1996, primarily as a result of the growth of the Company's management and
operating teams and the resulting increases in salaries, employee benefit costs
and overhead expenses.
Other income - affiliate increased $1.8 million in the first half of 1996,
primarily as a result of interest income earned on proceeds from the IPO
invested temporarily in the TDS cash management program pending use in PCS
network development and construction, as well as interest income associated with
a $28.8 million note receivable - affiliate.
Gain on sale of license represents the pretax gain recognized on the sale of the
Guam license in May, 1996, concurrent with FCC approval.
Interest expense - affiliate increased $1.5 million in the first half of 1996,
primarily as a result of greater interest capitalization in 1995 on the cost of
licenses acquired prior to TDS's $289.2 million equity contribution covering
such costs. Interest capitalization in 1996 is based solely upon construction
expenditures incurred related to the PCS network and information system
development.
Income tax expense increased $980,000 in the first half of 1996, primarily due
to an increase in the estimated valuation allowance associated with deferred tax
assets. For financial reporting purposes, the Company computes its federal
income taxes as if it were not a member of the TDS consolidated group for
federal income tax purposes.
The Company and TDS entered into a tax allocation agreement which became
effective January 1, 1996, pursuant to which, among other things, TDS no longer
reimburses the Company on a current basis for losses or credits used by TDS in
the year they are generated. Instead, the Company calculates its losses and
credits as if it were a separate affiliated group and the Company will be able
to carry forward its losses and credits, if any, to reduce future tax
liabilities.
The weighted average common and Series A common shares increased by
approximately 4.5 million due to 12,250,000 common shares issued on April 25,
1996, in connection with the Company's IPO.
Three Months Ended 6/30/96 Compared to Three Months Ended 6/30/95
Development costs - affiliate increased $45,000 in the second quarter of 1996,
largely as a result of approximately $147,000 in management services incurred in
connection with the Company's IPO in April, 1996, offset by a decrease of
$102,000 in other management services, primarily attributable to the Company's
management and operating teams increasing ability to independently coordinate
the development of its PCS business.
Development costs - other increased $2.0 million in the second quarter of 1996,
for reasons generally the same as for the first half of 1996.
General and administrative expenses increased $5.2 million in the second quarter
of 1996, for reasons generally the same as for the first half of 1996.
-3-
<PAGE>
Other income - affiliate increased $1.5 million in the second quarter of 1996,
for reasons generally the same as for the first half of 1996.
Gain on sale of license represents the pretax gain recognized on the sale of the
Guam license in May, 1996, concurrent with FCC approval.
Interest expense - affiliate increased $275,000 in the second quarter of 1996,
for reasons generally the same as for the first half of 1996.
Income tax expense increased $863,000 in the second quarter of 1996, for reasons
generally the same as for the first half of 1996.
The weighted average common and Series A common shares increased by
approximately 9.0 million due to 12,250,000 common shares issued on April 25,
1996, in connection with the Company's IPO.
LIQUIDITY AND CAPITAL RESOURCES
The costs of development, construction, and start-up activities of the Company
will require substantial capital. The Company expects to incur significant
operating losses and to generate negative cash flow from operating activities
during the next several years, while it develops and constructs its PCS networks
and builds a PCS customer base.
Cash flows used in operating activities were $3.8 million in 1996 and cash flows
provided by operating activities were $3.2 million in 1995. The cash used in
1996 resulted primarily from the $13.9 million net loss generated for the period
and a $2.5 million reduction in affiliated accounts payable and accrued
interest, offset by payment from TDS on the $12.5 million income tax refund
receivable balance at December 31, 1995. The cash provided in 1995 resulted
largely from increases in accounts payable and accrued interest.
Cash flows from financing activities provided $163.9 million in 1996 and $267.2
million in 1995. In April, 1996, the Company received proceeds from its initial
public offering of $195.3 million, net of underwriting discounts and
commissions. The Company used a portion of the net proceeds to repay the
outstanding balance under the revolving credit agreement with TDS. In 1996 the
Company received from TDS $28.8 million representing the balance due in
connection with TDS's $289.2 million contribution to the equity capital of the
Company in 1995. The 1995 equity contribution was made to cover the original
cost of the licenses acquired in the FCC broadband Block A and Block B PCS
auction. Cash flows from financing activities in 1995 were generated by
borrowings under the revolving credit agreement.
Cash flows from investing activities required cash totaling $23.0 million in
1996 and $270.3 million in 1995. Such cash requirements in 1996 consisted
primarily of additions to property and equipment (primarily computer equipment,
office equipment, and leasehold improvements) and capitalized network design,
site acquisition, and information system development costs totaling $23.7
million. Cash requirements in 1995 related largely to the Company's acquisition
of eight licenses in the FCC broadband Block A and Block B PCS auction.
The Company plans to construct networks in its primary MTAs. Management
anticipates the construction of cell sites will begin in the third quarter of
1996. Commercial operations are anticipated to commence in early 1997.
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<PAGE>
The Company anticipates construction, development, and introduction of PCS
networks and services will require substantial capital and operating
expenditures over the next several years. While construction (including
microwave relocation), and other start-up activities may be impacted by many
factors, the Company estimates that the aggregate funds required through
December 31, 1998 will total approximately $865 million ($410 million in 1996,
$350 million in 1997 and $105 million in 1998). This amount includes an
estimated $620 million in capital expenditures for construction of the PCS
networks and information systems development ($365 million in 1996, $210 million
in 1997, and $45 million in 1998) and $245 million of estimated working capital
requirements.
The Company expects 1996 capital expenditures and expenditures for start-up and
development activities to be financed using a variety of sources, including but
not limited to, borrowings under the TDS revolving credit agreement, vendor
financing and equity investors in the Company. In March, 1996, the Company
selected Nokia Telecommunications, Inc. ("Nokia") as its sole supplier of
infrastructure equipment during the initial build-out of its PCS networks. Nokia
has agreed to provide up to $200 million in financing for the equipment. In
April of 1996, the Company sold 12,250,000 of its common shares, approximately
17.2% of total outstanding shares, at a price of $17 per share in an initial
public offering. The net proceeds from the offering, after underwriters fees,
were $195.3 million. A portion of the net proceeds was applied to the repayment
of $64.1 million in outstanding indebtedness (including accrued interest) to TDS
under the revolving credit agreement. The Company currently has available $250
million under the revolving credit agreement with TDS. The Company believes that
its capital resources will be sufficient to fund the development, construction,
and operating costs of the Company's PCS networks into the second half of 1997.
Sources of additional capital may include additional vendor financing, private
equity and debt financings by the Company or its subsidiaries. If sufficient
funding is not available to the Company on terms and prices acceptable to the
Company, the Company would have to reduce its construction and development
programs, which could have a material adverse impact on the Company's financial
condition and results of future operations.
-5-
<PAGE>
AMERICAN PORTABLE TELECOM, INC. AND SUBSIDIARIES
(A Development Stage Enterprise)
CONSOLIDATED STATEMENTS OF OPERATIONS
Unaudited
Three Six
Months Ended Months Ended
June 30, June 30, Cumulative
-------------- ------------ July 23, 1991
to
1996 1995 1996 1995 June 30, 1996
---- ---- ---- ---- --------------
(Dollars in thousands, except per share amounts)
OPERATING EXPENSES
Development costs - affiliate $ 336 $ 291 $ 513 $ 636 $ 2,760
Development costs - other 2,196 167 4,150 433 8,113
General and administrative 5,229 -- 8,844 -- 12,430
------ ----- ------ ------ -------
OPERATING (LOSS) (7,761) (458) (13,507) (1,069) (23,303)
OTHER INCOME
Other income - affiliate 1,459 1 1,792 2 1,849
Gain on sale of license 189 -- 189 -- 189
------ ----- ------ ------ -------
1,648 1 1,981 2 2,038
(LOSS) BEFORE INTEREST AND
INCOME TAXES (6,113) (457) (11,526) (1,067) (21,265)
Interest expense - affiliate 364 89 1,669 150 2,825
------ ----- ------- ------ -------
(LOSS) BEFORE INCOME TAXES (6,477) (546) (13,195) (1,217) (24,090)
Income tax expense (benefit) 729 (134) 682 (298) (2,261)
------ ----- ------- ------ -------
NET (LOSS) $ (7,206) $(412) $(13,877) $(919) $ (21,829)
====== ===== ======= ====== =======
WEIGHTED AVERAGE COMMON
AND SERIES A
COMMON SHARES (000s) 68,105 59,086 63,596 59,086 60,257
(NOTE 2)
(LOSS) PER COMMON AND
SERIES A COMMON SHARE $(0.11) $(0.01) $(0.22) $(0.02) $ (0.36)
======= ======= ======= ======= ======
The accompanying notes to consolidated financial statements are an
integral part of these statements.
-6-
<PAGE>
AMERICAN PORTABLE TELECOM, INC. AND SUBSIDIARIES
(A Development Stage Enterprise)
CONSOLIDATED STATEMENTS OF CASH FLOWS
Unaudited
Six Months Ended
June 30,
------------------ Cumulative
July 23, 1991 to
1996 1995 June 30, 1996
--------- --------- ----------------
(Dollars in thousands)
CASH FLOWS FROM OPERATING ACTIVITIES
Net (loss) $ (13,877) $ (919) $ (21,829)
Add (Deduct) adjustments to reconcile
net (loss)
to net cash provided (used) by
operating activities:
Depreciation 476 -- 523
Gain on sale of PCS license (189) -- (189)
Change in cash - restricted 416 -- --
Change in accounts payable - affiliates
and accrued interest - affiliate (2,538) 1,595 243
Change in accounts payable - other 310 2,829 6,711
Change in income tax refund receivable
- affiliate 12,502 (34) --
Change in deferred tax asset/liability
- net 825 (298) 10,567
Change in other assets and deferred
costs (1,726) -- (1,927)
--------- ---------- ----------
(3,801) 3,173 (5,901)
--------- ---------- ----------
CASH FLOWS FROM FINANCING ACTIVITIES
Change in note receivable
- affiliate 28,836 -- 28,836
Change in revolving credit agreement
- TDS (60,238) 267,185 260,358
Issuance of common stock 195,265 -- 195,305
--------- --------- ---------
163,863 267,185 484,499
--------- --------- ---------
CASH FLOWS FROM INVESTING ACTIVITIES
Investment in PCS licenses -- (270,368) (305,818)
Change in temporary cash and other
investments - affiliate 305 32 (18)
Additions to work in process (21,200) -- (29,258)
Additions to property and equipment (2,491) -- (6,567)
Proceeds from sale of PCS license 350 -- 350
--------- --------- ---------
(23,036) (270,336) (341,311)
--------- --------- ---------
NET INCREASE IN CASH AND
CASH EQUIVALENTS 137,026 22 137,287
CASH AND CASH EQUIVALENTS-
Beginning of period 261 10 --
--------- --------- ---------
End of period $ 137,287 $ 32 $ 137,287
========= ========= =========
The accompanying notes to consolidated financial statements are
an integral part of these statements.
-7-
<PAGE>
AMERICAN PORTABLE TELECOM, INC. AND SUBSIDIARIES
(A Development Stage Enterprise)
CONSOLIDATED BALANCE SHEETS
(Unaudited)
June 30, 1996 December 31, 1995
------------- -----------------
(Dollars in thousands)
ASSETS
CURRENT ASSETS
Cash and cash equivalents - affiliate $ 137,287 $ 261
Cash - restricted -- 416
Temporary cash investments - affiliate -- 107
Other investments - affiliate 18 216
Note receivable - affiliate -- 28,836
Income tax refund receivable - affiliate -- 12,502
Interest receivable - affiliate 653 --
Other 193 201
------------- -------------
138,151 42,539
------------- -------------
FIXED ASSETS AND LICENSES
Property and equipment - net of accumulated
depreciation of $523 and $47, respectively 6,044 4,029
Work in process ($945 affiliate) 29,258 8,058
Investment in PCS licenses 305,676 305,818
------------- -------------
340,978 317,905
------------- -------------
OTHER DEFERRED COSTS 750 --
------------- -------------
TOTAL ASSETS $ 479,879 $ 360,444
============= =============
LIABILITIES AND SHAREHOLDERS' EQUITY
CURRENT LIABILITIES
Accounts payable - affiliates $ 243 $ 1,284
Accounts payable - other 7,402 6,401
Accrued interest - affiliate -- 1,497
------------ -------------
7,645 9,182
------------ -------------
REVOLVING CREDIT AGREEMENT - TDS -- 60,238
------------ -------------
DEFERRED TAX LIABILITY 10,567 9,742
------------ -------------
COMMON SHAREHOLDERS' EQUITY
Common shares, par value $1 per share 31,336 1
Series A Common Shares,
par value $1 per share 40,000 --
Additional paid-in capital 412,160 289,233
Deficit accumulated during the
development stage (21,829) (7,952)
------------ -------------
461,667 281,282
------------ -------------
TOTAL LIABILITIES AND SHAREHOLDERS'
EQUITY $ 479,879 $ 360,444
============ =============
The accompanying notes to consolidated financial statements are an integral part
of these statements
-8-
<PAGE>
AMERICAN PORTABLE TELECOM, INC. AND SUBSIDIARIES
(A Development Stage Enterprise)
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
1. The consolidated financial statements included herein have been prepared
by the Company, without audit, pursuant to the rules and regulations of
the Securities and Exchange Commission. Certain information and footnote
disclosures normally included in financial statements prepared in
accordance with generally accepted accounting principles have been
condensed or 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
Current Report on Form 8-K dated June 4, 1996.
The accompanying unaudited consolidated financial statements contain all
adjustments (consisting of only normal recurring items) necessary to
present fairly the financial position as of June 30, 1996 and December 31,
1995, and the results of operations and cash flows for the six months
ended June 30, 1996 and 1995. The results of operations for the six months
ended June 30, 1996 and 1995, are not necessarily indicative of the
results to be expected for the full year.
2. Net (Loss) per Common and Series A Common share for the three and six
months ended June 30, 1996 and 1995, was computed based on the number of
Common and Series A Common shares outstanding during the period adjusted
to give retroactive effect to the recapitalization in conjunction with the
Company's 1996 initial public offering, as if this transaction had
occurred at January 1, 1995.
3. The Company did not pay income taxes during 1995 or 1996. Taxable losses
generated by the Company in 1995 resulted in a cash payment of
approximately $12.6 million from TDS in May of 1996. The Company paid
approximately $499,000 in interest expense and converted approximately
$3.0 million in interest expense to debt under the Revolving Credit
Agreement with TDS during the six months ended June 30, 1996. No accrued
interest was paid or converted to debt under the Revolving Credit
Agreement during the six months ended June 30, 1995. The Company
capitalized interest expense of approximately $372,000 during the six
months ended June 30, 1996, and approximately $1.6 million during the six
months ended June 30, 1995.
4. Recapitalization. On March 28, 1996, TDS, as the sole shareholder of the
Company, executed a consent to action in lieu of a meeting, voting all
1,000 shares of common stock of the Company then outstanding for the
approval of a Restated Certificate of Incorporation of the Company. Such
Restated Certificate of Incorporation authorized (a) 60,000,000 Common
Shares, $1.00 par value per share; (b) 60,000,000 Series A Common Shares,
$1.00 par value per share; (c) 60,000,000 Series B Common Shares, $1.00
par value per share; and (d) 10,000,000 Preferred Shares, $1.00 par value
per share. Upon the filing of the Restated Certificate of Incorporation
with the Secretary of State of the State of Delaware on April 19, 1996,
the 1,000 shares of common stock of the Company theretofore held by TDS
were converted into 19,086,000 Common Shares and 40,000,000 Series A
Common Shares of the Company.
Initial Public Offering. The Company sold 12,250,000 Common Shares at a
price of $17 per share in an initial public offering on April 25, 1996.
Proceeds of the Offering, net of underwriting discounts and commissions,
totaled $195.3 million. The Company used a portion of the net proceeds to
repay TDS approximately $64.1 million, representing the outstanding
balance
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<PAGE>
(including accrued interest) under the Revolving Credit Agreement,
and expects to use the balance of the funds to partially finance
construction, development and operating costs incurred to establish its
PCS networks.
5. In May of 1996, concurrent with FCC approval, the Company sold its Guam
PCS license for $350,000 and recorded a pretax gain on the sale of
approximately $189,000, net of commissions.
6. Commitments. As of June 30, 1996, the Company had on order with Nokia
Telecommunications, Inc. ("Nokia") approximately $33.0 million in
infrastructure equipment as part of the Company's initial build out of its
PCS networks.
-10-
<PAGE>
PART II. OTHER INFORMATION
Item 2. Changes in Securities
See Item 4.a.
Item 4. Submission of Matters to a Vote of Security-Holders.
(a) On March 28, 1996, TDS, as the sole shareholder of the Company,
executed a consent to action in lieu of a meeting, voting all 1,000 shares of
common stock of the Company then outstanding for the approval of a Restated
Certificate of Incorporation of the Company. Such Restated Certificate of
Incorporation authorized (a) 60,000,000 Common Shares, $1.00 par value per
share; (b) 60,000,000 Series A Common Shares, $1.00 par value per share; (c)
60,000,000 Series B Common Shares, $1.00 par value per share; and (d) 10,000,000
Preferred Shares, $1.00 par value per share. Upon the filing of the Restated
Certificate of Incorporation with the Secretary of State of the State of
Delaware on April 19, 1996, the 1,000 shares of common stock of the Company
theretofore held by TDS were converted into 19,086,000 Common Shares and
40,000,000 Series A Common Shares of the Company.
Item 6. Exhibits and Reports on Form 8-K.
(a) Exhibits
Exhibit 11 - Computation of earnings per common share.
Exhibit 27 - Financial Data Schedule.
(b) Reports on Form 8-K filed during the quarter ended June 30, 1996.
APT filed a Current Report on Form 8-K dated June 4, 1996, which updated the
financial statements that were included in the Company's Registration Statement
on Form S-1, as amended, (Registration No. 333-1514). A revision was made to
Footnote 2(i) resulting from changing the accounting policy of amortizing PCS
licenses effective January 1, 1996, to amortizing the licenses upon commencement
of service.
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<PAGE>
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.
AMERICAN PORTABLE TELECOM, INC
(Registrant)
Date August 13, 1996 /s/ DONALD W. WARKENTIN
------------------------ ----------------------------
Donald W. Warkentin
President
(Chief Executive Officer)
Date August 13, 1996 /s/ J. CLARKE SMITH
------------------------ ----------------------------
J. Clarke Smith
Vice President-Finance and Administration
(Chief Financial Officer)
Date August 13, 1996 /s/ B. SCOTT DAILEY
------------------------ ---------------------------
B. Scott Dailey
Controller
(Principal Accounting Officer)
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<PAGE>
Exhibit 11
American Portable Telecom, Inc. and Subsidiaries
(A Development Stage Enterprise)
Computation of Earnings Per Common Share
(in thousands, except per share amounts)
Three Months Ended June 30, 1996 1995
- - --------------------------- ---- ----
Primary Earnings
Net (Loss) $ (7,206) $ (412)
=========== ===========
Primary Shares
Weighted average number of Common and Series A
Common Shares Outstanding* 68,105 59,086
=========== ===========
Primary Earnings per Common Share
Net (Loss) $ (0.11) $ (0.01)
=========== ===========
Six Months Ended June 30, 1996 1995
- - ------------------------- ---- ----
Primary Earnings
Net (Loss) $ (13,877) $ (919)
=========== ===========
Primary Shares
Weighted average number of Common and Series A
Common Shares Outstanding* 63,596 59,086
=========== ===========
Primary Earnings per Common Share
Net (Loss) $ (0.22) $ (0.02)
=========== ===========
* Weighted average number of Common and Series A Common Shares Outstanding was
calculated based on the number of Common Shares outstanding during the period
adjusted to give retroactive effect to the recapitalization in conjunction with
the Company's initial public offering, as if this transaction had occurred at
January 1, 1995.
<PAGE>
<TABLE> <S> <C>
<ARTICLE> 5
<LEGEND>
This schedule contains summary financial information extracted from the
consolidated financial statements of American Portable Telecom, Inc. as of June
30, 1996, and for the six months then ended, and is qualified in its entirety by
reference to such financial statements.
</LEGEND>
<MULTIPLIER> 1,000
<S> <C>
<PERIOD-TYPE> 6-MOS
<FISCAL-YEAR-END> DEC-31-1996
<PERIOD-END> JUN-30-1996
<CASH> 137,287
<SECURITIES> 18
<RECEIVABLES> 0
<ALLOWANCES> 0
<INVENTORY> 0
<CURRENT-ASSETS> 138,151
<PP&E> 6,567
<DEPRECIATION> 523
<TOTAL-ASSETS> 479,879
<CURRENT-LIABILITIES> 7,645
<BONDS> 0
<COMMON> 71,336
0
0
<OTHER-SE> 390,331
<TOTAL-LIABILITY-AND-EQUITY> 479,879
<SALES> 0
<TOTAL-REVENUES> 0
<CGS> 0
<TOTAL-COSTS> 0
<OTHER-EXPENSES> 11,526
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 1,669
<INCOME-PRETAX> (13,195)
<INCOME-TAX> 682
<INCOME-CONTINUING> (13,877)
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> (13,877)
<EPS-PRIMARY> (.22)
<EPS-DILUTED> (.22)
</TABLE>
