<PAGE>
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934
Date of Report (Date of earliest event reported): April 15, 1996
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ACC Corp.
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(Exact name of registrant as specified in its charter)
Delaware 0-14567 16-1175232
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(State or other jurisdiction (Commission (IRS Employer
of incorporation) File Number) Identification No.)
400 West Avenue, Rochester, New York 14611
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(Address of principal executive offices) (Zip Code)
Registrant's telephone number, including area code (716) 987-3000
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Not Applicable
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(Former name or former address, if changed since last report)
Exhibit Index Appears at Page 4
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ITEM 5. OTHER EVENTS
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Recent Developments
The Company has issued an earnings release on its first quarter
results. Attached hereto as Exhibit 99.1 are the Company's unaudited
consolidated balance sheets as at March 31, 1995 and 1996, the Company's
unaudited consolidated statements of operations and unaudited consolidated
statements of cash flows for the quarters then ended and the Company's audited
consolidated balance sheets as at December 31, 1995 and 1996, which were
included in such press release and which are incorporated by reference herein.
As used herein, unless the context otherwise requires, the "Company"
and "ACC" refer to ACC Corp. and its subsidiaries, including ACC Long Distance
Corp. ("ACC U.S."), ACC TelEnterprises Ltd., the Company's 70% owned Canadian
subsidiary ("ACC Canada"), and ACC Long Distance UK Ltd. ("ACC U.K."). In this
Form 8-K references to "dollar" and "$" are to United States dollars, references
to "Cdn. $" are to Canadian dollars, references to "(Pounds)" are to English
pounds sterling, the terms "United States" and "U.S." mean the United States of
America and, unless the context otherwise requires, its states, territories and
possessions and all areas subject to its jurisdiction, and the terms "United
Kingdom" and "U.K." mean England, Scotland and Wales.
ITEM 7. FINANCIAL STATEMENTS AND EXHIBIT
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See Exhibit Index
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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.
ACC Corp.
Dated: April 15, 1996 By: /s/ David K. Laniak
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David K. Laniak
Chief Executive Officer
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EXHIBIT INDEX
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<TABLE>
<CAPTION>
Exhibit
Number Title or Description Location
- -------- -------------------- --------
<S> <C> <C>
99. 1 Unaudited consolidated balance sheets as at
March 31, 1995 and 1996, unaudited
consolidated statements of operations and
unaudited consolidated statements of cash
flows for the quarters then ended and audited
consolidated balance sheets as at December 31,
1995 and 1996
</TABLE>
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Exhibit 99.1
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ACC CORP. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS
(UNAUDITED)
(Amounts in thousands, except per share data)
<TABLE>
<CAPTION>
Three months ended
March 31,
1996 1995
---------- ---------- ---------- ----------
<S> <C> <C> <C> <C>
Revenue:
Toll revenue $61,538 37,366
Leased lines and other 5,317 2,342
---------- ---------- ---------- ----------
66,855 39,708
Network costs 41,608 24,745
---------- ---------- ---------- ----------
Gross profit 25,247 14,963
Other operating expenses:
Depreciation and amortization 3,619 2,532
Selling, general and
administrative 18,637 12,877
---------- ---------- ---------- ----------
22,256 15,409
---------- ---------- ---------- ----------
Income (loss) from operations 2,991 (446)
Other income (expense):
Interest (1,524) (918)
Foreign exchange gain (loss) 12 (30)
---------- ---------- ---------- ----------
(1,512) (948)
---------- ---------- ---------- ----------
Income (loss) before provision
for income taxes and minority
interest 1,479 (1,394)
Provision for income taxes 324 270
---------- ---------- ---------- ----------
Income (loss) before minority
interest 1,155 (1,664)
Minority interest in (earnings)
loss of consolidated subsidiary (299) 10
---------- ---------- ---------- ----------
Net income (loss) 856 (1,654)
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Less Series A preferred stock
dividend (299) -
Less Series A preferred stock
accretion (209) -
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Income (loss) applicable to
common stock $ 348 $ (1,654)
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Net income (loss) per common
& common equivalent share $ 0.04 $ (0.23)
========== ==========
Average number of common
and common equivalent shares 8,533,635 7,085,727
========== ========== ========== ==========
</TABLE>
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ACC CORP. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
(Amounts in thousands, except share data)
<TABLE>
<CAPTION>
March 31, December 31,
1996 1995
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(unaudited)
<S> <C> <C>
Current assets:
Cash and cash equivalents $ 1,389 $ 518
Accounts receivable, net of allowance
for doubtful accounts of $2,700 in
1996 and $2,085 in 1995 41,458 38,978
Other receivables 2,254 3,965
Prepaid expenses and other assets 2,782 2,265
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Total current assets 47,883 45,726
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Property, plant and equipment:
At cost 88,946 83,623
Less-accumulated depreciation and
amortization (29,376) (26,932)
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59,570 56,691
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Other assets:
Goodwill and customer base, net 13,552 14,072
Deferred installation costs, net 3,539 3,310
Other 4,206 4,185
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21,297 21,567
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Total assets $ 128,750 $ 123,984
============== ============
March 31, December 31,
1996 1995
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(unaudited)
Current liabilities:
Notes payable $ 695 $ 1,966
Current maturities of
long-term debt 2,786 2,919
Accounts payable 8,900 7,340
Accrued network costs 27,769 28,192
Other accrued expenses 13,683 15,657
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Total current liabilities 53,833 56,074
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Deferred income taxes 2,317 2,577
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Long-term debt 31,719 28,050
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Redeemable Series A Preferred Stock, $1.00
par value, $1,000 liquidation value,
cumulative, convertible, Authorized-
10,000 shares; Issued - 10,000 shares 9,956 9,448
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Minority interest 1,740 1,428
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Shareholders' equity:
Preferred Stock, $1.00 par value, Authorized -
1,990,000 shares; Issued - no shares - -
Class A Common Stock, $.015 par value
Authorized - 50,000,000 shares;
Issued - 8,829,666 in 1996 and
8,617,259 in 1995 132 129
Class B Common Stock, $.015 par value,
Authorized - 25,000,000 shares;
Issued - no shares - -
Capital in excess of par value 34,832 32,911
Cumulative translation adjustment (950) (950)
Retained earnings (deficit) (3,219) (4,073)
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30,795 28,017
Less-
Treasury stock, at cost (726,589
shares) (1,610) (1,610)
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Total shareholders' equity 29,185 26,407
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Total liabilities and
shareholders' equity $ 128,750 $123,984
=============== ============
</TABLE>
<PAGE>
ACC CORP AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS
(UNAUDITED)
(Amounts in 000's)
FOR THE THREE MONTHS ENDED
MARCH 31,
1996 1995
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Cash flows from operating activities:
Net income (loss) $856 ($1,654)
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Adjustments to reconcile net income to net cash
provided by operating activities:
Depreciation and amortization 3,619 2,532
Deferred income taxes (260) 250
Minority interest in income (loss) of consolidated
subsidiary 299 (10)
Unrealized foreign exchange loss (gain) 59 (6)
(increase) decrease in assets:
Accounts receivable, net (2,604) (1,816)
Other receivables 1,710 470
Prepaid and other assets (523) (483)
Deferred installation costs (675) (630)
Other (169) (5)
Increase (decrease) in liabilities:
Accounts payable 1,594 (1,541)
Accrued network costs (257) 1,527
Other accrued expenses (1,913) 198
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Net cash used in operating activities 1,736 (1,168)
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Cash flows from investing activities:
Capital expenditures, net (5,625) (1,845)
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Net cash used in investing activities (5,625) (1,845)
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Cash flows from financing activities:
Borrowings under lines of credit 11,850 11,358
Repayments under lines of credit (7,350) (9,846)
Repayment of notes payable (1,293) _
Repayment of long-term debt (852) (335)
Proceeds from issuance of common stock 2,446 1,442
Dividends paid _ (208)
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Net cash provided by financing activities 4,801 2,411
Effect of exchange rate changes on cash (41) (338)
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Net increase in cash 871 (940)
Cash and cash equivalents at beginning or period 518 1,021
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Cash and cash equivalents at end of period $1,389 $81
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Supplemental disclosures of cash flow information:
Cash paid during the period for:
Interest $896 $942
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Income taxes $583 _
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Supplemental schedule of noncash investing
activities:
Equipment purchased through capital leases _ $55
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Supplemental schedule of noncash financing
activities:
Sale of common stock ($6.6 million received
in April, 1995) _ $6,840
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