SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
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FORM 8-K/A
CURRENT REPORT
PURSUANT TO SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934
DATE OF REPORT (DATE OF EARLIEST EVENT REPORTED) SEPTEMBER 1, 1998
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CELLULAR COMMUNICATIONS OF PUERTO RICO, INC.
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(Exact Name of Registrant as Specified in Charter)
Delaware 0-19869 13-3927257
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(State or Other Jurisdiction (Commission (IRS Employer
of Incorporation) File Number) Identification No.)
110 East 59th Street, New York, New York 10022
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(Address of Principal Executive Offices) (Zip Code)
Registrant's Telephone Number, including area code (212) 906-8485
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CORECOMM INCORPORATED
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(Former Name or Former Address, if Changed Since Last Report)
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Item 2. Acquisitions and Dispositions of Assets
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On September 2, 1998, CoreComm Incorporated (the "Company" or "Old
CoreComm") conducted a distribution to its shareholders of all the common stock
of its wholly owned subsidiary, CoreComm Limited, a Bermuda company ("Newco").
Shares of Newco were distributed on the basis of one share Newco common stock
for each share owned on the record date of Old CoreComm common stock. On that
date Newco traded on the Nasdaq National Market on a when issued basis under the
symbol "COMFV". On September 3, 1998, Newco commenced trading under its
permanent symbol "COMMF".
In addition, on September 1, 1998, the Company changed its name to
"Cellular Communications of Puerto Rico, Inc." Beginning September 2, 1998, the
renamed entity commenced trading on the Nasdaq National Market under the symbol
"CLPR". On September 3, 1998, the Company changed its symbol to "CLRP" and
commenced trading ex-dividend.
Item 5. Other Events
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The Company's Form 8-K originally filed on September 4, 1998, listing Item
5, is amended to include disclosure under Item 2 for Form 8-K.
Item 7. Financial Statements and Exhibits
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Exhibits
99.1 * Press release, dated September 1, 1998
99.2 * Press release, dated September 2, 1998
99.3 * Certificate of Ownership and Merger, filed with the Secretary of State
of the State of Delaware on September 1, 1998, merging Cellular
Communications of Puerto Rico, Inc. with and into CoreComm
Incorporated under the name of Cellular Communications of Puerto Rico,
Inc.
99.4 Unaudited Pro Forma Financial Information
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* Incorporated herein by reference to the Company's Form 8-K, filed
September 4, 1998.
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SIGNATURES
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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.
CELLULAR COMMUNICATIONS
OF PUERTO RICO, INC.
(Registrant)
By: /s/ Richard J. Lubasch
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Name: Richard J. Lubasch
Title: Senior Vice President-General Counsel
and Secretary
Dated: October 13, 1998
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EXHIBIT INDEX
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Exhibit Page
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99.1 * Press release, dated September 1, 1998
99.2 * Press release, dated September 2, 1998
99.3 * Certificate of Ownership and Merger, filed with the
Secretary of State of the State of Delaware on
September 1, 1998, merging Cellular Communications
of Puerto Rico, Inc. with and into CoreComm Incorporated
under the name of Cellular Communications of Puerto Rico, Inc.
99.4 Unaudited Pro Forma Financial Information
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* Incorporated herein by reference to the Company's Form 8-K, filed
September 4, 1998.
UNAUDITED PRO FORMA FINANCIAL INFORMATION
The unaudited pro forma financial information gives effect to (i) bank
borrowings incurred by a subsidiary of Cellular Communications of Puerto Rico,
Inc. ("CCPR") - formerly known as CoreComm Incorporated, (ii) a capital
contribution made by CCPR to CoreComm Limited ("CoreComm) and (iii) the spin-off
of CoreComm from CCPR effected by CCPR's distribution to its shareholders of all
of the common stock of CoreComm (collectively the "Transactions"). The pro forma
financial information is based on the historical financial statements of CCPR
and CoreComm.
The unaudited pro forma condensed consolidated statement of operations for the
six months ended June 30, 1998 and for the year ended December 31, 1997 give
effect to the Transactions as if they had been consummated on January 1, 1997.
The unaudited pro forma condensed consolidated balance sheet as of June 30, 1998
gives effect to the Transactions as if they had been consummated on June 30,
1998.
The pro forma adjustments are based upon available information and assumptions
that management believes are reasonable at the time made. Management believes
that any variations from the available information and assumptions applied will
not have a material effect on the pro forma financial statements presented. The
unaudited pro forma condensed consolidated financial statements do not purport
to present the financial position or results of operations of CCPR had the
Transactions occurred on the dates specified, nor are they necessarily
indicative of the financial position or results of operations that may be
achieved in the future.
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CELLULAR COMMUNICATIONS OF PUERTO RICO, INC. AND SUBSIDIARIES
PRO FORMA CONDENSED CONSOLIDATED BALANCE SHEET (UNAUDITED)
JUNE 30, 1998
(IN THOUSANDS)
<TABLE>
<CAPTION>
ADJUSTMENTS
(BANK LOAN & CORECOMM PRO
HISTORICAL CAPITAL CONTRIBUTION) SPIN-OFF FORMA
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<S> <C> <C> <C> <C>
Current assets
Cash $ 19,250 A,B,C,D $ (6,900) $ 201 $ 12,149
Marketable securities 24,374 24,374
Accounts receivable, net 19,021 1,320 17,701
Inventory 4,438 172 4,266
Other 9,647 371 9,276
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Total current assets 76,730 (6,900) 2,064 67,766
Fixed assets, net 129,046 1,687 127,359
Unamortized license acquistion costs 197,514 25,356 172,158
Other, net 9,947 C 3,000 2,472 10,475
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$ 413,237 $ (3,900) $ 31,579 $ 377,758
========= ======================================================
Current liabilities
Accounts payable $9,491 $ 842 $ 8,649
Accrued expenses 20,947 1,450 19,497
Other 5,693 747 4,946
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Total current liabilities 36,131 3,039 33,092
Long-term debt 208,900 A,B $ 146,100 355,000
Other 9,310 9,310
Shareholders' equity 158,896 D (150,000) 28,540 (19,644)
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$ 413,237 $ (3,900) $ 31,579 $ 377,758
========= ======================================================
</TABLE>
<PAGE>
CELLULAR COMMUNICATIONS OF PUERTO RICO, INC. AND SUBSIDIARIES
PRO FORMA CONDENSED CONSOLIDATED STATEMENT OF OPERATIONS (UNAUDITED)
SIX MONTHS ENDED JUNE 30, 1998
(IN THOUSANDS, EXCEPT PER SHARE DATA)
<TABLE>
<CAPTION>
CORECOMM PRO
HISTORICAL ADJUSTMENTS SPIN-OFF FORMA
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<S> <C> <C> <C> <C>
Revenues $ 83,280 $ 1,261 $ 82,019
Costs and expenses:
Cost of equipment sold 9,469 15 9,454
Operating 9,418 1,052 8,366
Selling, general and administrative 35,687 1,417 34,270
Depreciation and amortization 16,285 F $ 217 158 16,344
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70,859 217 2,642 68,434
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Operating income (loss) 12,421 (217) (1,381) 13,585
Other expense, net 9,580 E 5,844 - 15,424
Income tax provision 836 836
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Net income (loss) $ 2,005 $ (6,061) $ (1,381) $ (2,675)
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Net income (loss) per common share $ 0.15 $ (0.20)
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Net income (loss) per share - Assuming
dilution $ 0.14 $ (0.20)
======== =========
</TABLE>
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CELLULAR COMMUNICATIONS OF PUERTO RICO, INC. AND SUBSIDIARIES
PRO FORMA CONDENSED CONSOLIDATED STATEMENT OF OPERATIONS (UNAUDITED)
YEAR ENDED DECEMBER 31, 1997
(IN THOUSANDS, EXCEPT PER SHARE DATA)
<TABLE>
<CAPTION>
CORECOMM PRO
HISTORICAL ADJUSTMENTS SPIN-OFF FORMA
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<S> <C> <C> <C> <C>
Revenues $ 148,494 $ - $ 148,494
Costs and expenses: - -
Cost of equipment sold 19,089 - 19,089
Operating 14,949 - 14,949
Selling, general and administrative 71,271 - 71,271
Depreciation and amortization 25,660 H $ 434 - 26,094
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130,969 434 - 131,403
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Operating income 17,525 434 - 17,091
Other expense, net 20,706 G 11,688 - 32,394
Income tax provision 2,159 - 2,159
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Net loss $ (5,340) $ (12,122) $ - $ (17,462)
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Net income (loss) per common share $ (0.40) $ (1.31)
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Net income (loss) per share
- Assuming dilution $ (0.40) $ (1.31)
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</TABLE>
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CELLULAR COMMUNICATIONS OF PUERTO RICO, INC. AND SUBSIDIARIES
PRO FORMA ADJUSTMENTS
(IN THOUSANDS)
A. To record cash received from bank loan $ 155,000
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B. To repay note payable in cash $ 8,900
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C. To record financing costs paid in cash $ 3,000
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D. To record cash capital contribution to CoreComm Limited $ 150,000
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E. To record interest expense using 8% interest rate for
the six months ended June 30, 1998 $ 5,844
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F. To record amortization of deferred financing costs
(over 83 months) for the six months ended June 30, 1998 $ 217
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G. To record interest expense using 8% interest rate for
the year ended December 31, 1997 $ 11,688
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H. To record amortization of deferred financing costs
(over 83 months) for the year ended December 31, 1997 $ 434
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