<PAGE> 1
U. S. SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 10-QSB
/X/ Quarterly Report under Section 13 or 15(d) of the Securities Exchange
Act of 1934 For the quarterly period ended December 31, 1996
/ / Transition Report pursuant to Section 13 or 15(d) of the
Securities Exchange Act of 1934
Commission File Number 0-13615
CELLCOM CORP.
(Exact name of Small Business Issuer as specified in its Charter)
Delaware 06-1106964
(State of Incorporation) (IRS Employer ID Number)
520 South Fourth Street, Las Vegas, Nevada 89101
(Address of principal executive offices)
(702) 896-8898
(Issuer's telephone number, Including Area Code)
Check whether the Issuer: (1) has filed all reports to be filed by Section 13 or
15(d) of the Exchange Act during the past 12 months (or for such shorter period
that the registrant was required to file such report(s), and (2) has been
subject to the filing requirements for at least the past 90 days.
X Yes No
----- -----
APPLICABLE ONLY TO ISSUERS INVOLVED IN BANKRUPTCY
PROCEEDINGS DURING THE PRECEDING FIVE YEARS
Check whether issuer has filed all documents and reports required to be filed by
Section 12, 13 or 15(d) of the Exchange Act after the distribution of securities
under a plan confirmed by a court.
X Yes No
----- -----
The Issuer had 11,558,605 shares of Common Stock outstanding as of January 31,
1997.
Transitional Small Business Disclosure Format:
X Yes No
----- -----
<PAGE> 2
CELLCOM CORP. AND SUBSIDIARIES
FORM 10-QSB INDEX
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PAGE #
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PART I- FINANCIAL INFORMATION
Condensed Consolidated Balance Sheets as of
December 31, 1996 (Unaudited) and September 30, 1996................. 3
Condensed Consolidated Statements of Operations for
the Three Months Ended December 31, 1996 and 1995
(Unaudited).......................................................... 4
Condensed Consolidated Statements of Cash Flows for the
Three Months Ended December 31, 1996 and 1995 (Unaudited)............ 5
Notes to the Condensed Consolidated Financial
Statements (Unaudited)............................................... 6
Management's Discussion and Analysis ................................ 8
PART II- OTHER INFORMATION
Exhibits and Reports on Form 8-K..................................... 9
Signatures........................................................... 10
2
<PAGE> 3
CELLCOM CORP. AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
DECEMBER 31, 1996 (UNAUDITED) AND SEPTEMBER 30, 1996
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(Dollar amounts in thousands)
<TABLE>
<CAPTION>
12/31/96 09/30/96
-------- --------
<S> <C> <C>
ASSETS
CURRENT ASSETS:
Cash and cash equivalents $ 95 $ 128
Accounts receivable 1 1
Prepaid expenses 3 3
-------- --------
TOTAL CURRENT ASSETS $ 198 $ 132
======== ========
LIABILITIES AND STOCKHOLDERS' EQUITY
CURRENT LIABILITIES:
Accounts payable 7 18
Taxes payable 53 53
-------- --------
TOTAL CURRENT LIABILITIES 60 71
-------- --------
COMMITMENTS AND CONTINGENCIES
STOCKHOLDERS' EQUITY:
Common stock, $.001 par value;
100,000,000 shares authorized
and 11,558,605 shares issued
and outstanding 12 12
Additional paid-in capital 10,989 10,989
Accumulated deficit (10,962) (10,940)
-------- --------
TOTAL STOCKHOLDERS' EQUITY 39 61
-------- --------
TOTAL LIABILITIES AND STOCKHOLDERS'
EQUITY $ 99 $ 132
======== ========
</TABLE>
SEE NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
3
<PAGE> 4
CELLCOM CORP. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENT OF OPERATIONS
FOR THE THREE MONTHS ENDED DECEMBER 31, 1996 AND 1995 (UNAUDITED)
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(Dollar amounts in thousands except per share amounts)
<TABLE>
<CAPTION>
Three Months Ended,
December 31,
----------------------------------
1996 1995
------------ ------------
<S> <C> <C>
CONTINUING OPERATIONS
General and administrative $ 23 $ 27
Interest income (1) (2)
------------ ------------
NET LOSS $ (22) $ (25)
============ ============
INCOME (LOSS) PER SHARE:
NET LOSS PER SHARE $ .00 (1) $ 00 (1)
============ ============
WEIGHTED AVERAGE NUMBER
OF SHARES: 11,558,605 11,558,605
============ ============
</TABLE>
(1) - Less than $.01 per share.
SEE NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
4
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CELLCOM CORP. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS
FOR THE THREE MONTHS ENDED DECEMBER 31, 1996 AND 1995 (UNAUDITED)
- --------------------------------------------------------------------------------
(Dollar amounts in thousands)
<TABLE>
<CAPTION>
Three Months Ended,
December 31,
-------------------
1996 1995
----- -----
<S> <C> <C>
CASH FLOWS USED FOR OPERATING ACTIVITIES:
Net income (loss) $ (22) $ (25)
Adjustments to reconcile net income
(loss) to net cash used for operating
activities:
Change in operating assets and liabilities:
Decrease in accounts receivable 0 1
Decrease in prepaid assets 0 1
Decrease in accounts payable (11) (6)
----- -----
NET CASH PROVIDED BY (USED FOR)
OPERATING ACTIVITIES (33) (29)
----- -----
CASH AND CASH EQUIVALENTS
AT BEGINNING OF PERIOD 128 225
----- -----
CASH AND CASH EQUIVALENTS
AT END OF PERIOD $ 95 $ 196
===== =====
SUPPLEMENTAL DISCLOSURE OF CASH FLOW
INFORMATION:
INTEREST INCOME $ 1 $ 2
===== =====
INCOME TAXES PAID $ 0 $ 0
===== =====
</TABLE>
SEE NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
5
<PAGE> 6
CELLCOM CORP. AND SUBSIDIARIES
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)
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1. BASIS OF PRESENTATION
The financial information included herein has been prepared pursuant
to Statement of Position 90-7, "Financial Reporting by Entities in
Reorganization Under the Bankruptcy Code" ("SOP 90-7"). The
accompanying consolidated balance sheet distinguishes between
liabilities subject to compromise and liabilities not subject to
compromise pursuant to the Bankruptcy Code. The accompanying
consolidated financial statements of Cellcom Corp. and its
subsidiaries have been prepared on a going concern basis which
contemplates the realization of assets and the settlements of
liabilities and commitments in the ordinary course of business.
The financial information at December 31, 1996 and for the three
months ended December 31, 1996 are unaudited and reflect all
adjustments (that include only normal recurring adjustments) which
are, in the opinion of Management, necessary for a fair presentation
of the financial position, results of operations and cash flows for
interim periods.
2. PETITION FOR RELIEF UNDER CHAPTER 11
On April 16, 1992, the Company filed voluntary petitions for relief
under Chapter 11 of the United States Bankruptcy Code (the
"Petitions") in the United States Bankruptcy Court of the Southern
District of New York (the "Court"). Under Chapter 11, certain claims
against the Company in existence prior to the filing of the Petitions
for relief under the federal bankruptcy laws were stayed while the
Company continued its business operations as debtor-in-possession.
On August 20, 1993, the Company filed a Modified Consolidated Plan of
Reorganization (the "Plan") with the Court. The "Post Confirmation
Order" was dated and notice was given on October 7, 1993. The Plan
called for a consolidation of the Company and its subsidiaries for tax
and accounting purposes and the Company will continue to pursue
collection of contingent assets. Pursuant to the terms of the Plan,
the Company has settled all administrative, secured and priority
claims. All funds remaining after these distributions have been
distributed among the unsecured creditors and the Company.
6
<PAGE> 7
The Company has no operations. It is principally engaged in
controlling its assets (principally cash) and administering its
liabilities. The Company is in the process of evaluating potential
business opportunities which could be attained by merger or
acquisition. In Management's opinion, if the Company embarks on a new
business venture, no assurance can be given regarding the future
success of such a business due to all the attendant costs and risks
associated with starting or acquiring a new business.
7
<PAGE> 8
CELLCOM CORP. AND SUBSIDIARIES
MANAGEMENT'S DISCUSSION AND ANALYSIS
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OVERVIEW
Prior to April 1992, Cellcom Corp. and its subsidiaries (the
"Company") experienced declining working capital, net operating
losses, negative cash flow and increased rate of customer
deactivations in certain markets. Consequently, Management and the
Board of Directors concluded that it was in the best interest of the
Company to seek protection from its creditors under the U.S.
Bankruptcy Code. Please see the accompanying footnote to the
consolidated financial statements.
LIQUIDITY AND CAPITAL RESOURCES
The Company has sufficient cash to pay its current and anticipated
operating expenses. The Company has a net operating loss carryforward
("NOL") of approximately $9.3 million for both financial reporting and
income tax purposes. The Company expects to use this NOL to offset
earnings in potential business opportunities. If the Company embarks
on a new business venture, no assurance can be given regarding the
future success of such a business due to all the attendant costs and
risks associated with starting or acquiring a new business.
RESULTS OF OPERATIONS
THREE MONTHS ENDED DECEMBER 31, 1996 AND 1995
The Company had no operating revenues for the three month period ended
December 31, 1996 or 1995. The Company incurred general and
administrative expenses of $23,000 and $27,000 during the three month
period ended December 31, 1996 and 1995, respectively. The Company
continues to incur administrative expenses even though it has no
operations.
8
<PAGE> 9
PART II. - OTHER INFORMATION
Item 6. - Exhibits and reports on Form 8-K.
None.
9
<PAGE> 10
CELLCOM CORP. AND SUBSIDIARIES
SIGNATURES
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Pursuant to the requirements of the Securities and Exchange Act of 1934, the
Registrant has duly caused this report to be signed on its behalf by the
undersigned, thereunto duly authorized.
Dated: February 14, 1997
Las Vegas, Nevada CELLCOM CORP.
By: /s/ Jay H. Brown
-----------------------------
Jay H. Brown
President and
Chief Executive Officer
(Principal Executive Officer)
By: /s/ David A. Obal
-----------------------------
David A. Obal
Chief Financial Officer
(Principal Financial and
Accounting Officer)
10
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<ALLOWANCES> 0
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<CURRENT-ASSETS> 99
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0
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<LOSS-PROVISION> 0
<INTEREST-EXPENSE> (1)
<INCOME-PRETAX> (22)
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