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
<PAGE>
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.
<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.
PEOPLES TELEPHONE COMPANY, INC.
REGISTRANT
DATE: JULY 26, 1995 \S\ BONNIE S. BIUMI
-------------------------------
BONNIE S. BIUMI
CHIEF FINANCIAL OFFICER
EXHIBIT 99.1
FINANCIAL STATEMENTS
<PAGE>
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.
<PAGE>
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.
<PAGE>
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.
<PAGE>
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.
EXHIBIT 99.2
PEOPLES TELEPHONE COMPANY, INC.
AND
ATLANTIC TELCO JOINT VENTURE
COMBINED PRO FORMA FINANCIAL STATEMENTS
(UNAUDITED)
<PAGE>
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.
<PAGE>
<TABLE>
<CAPTION>
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
----------------- -------------- ----------- ---------
<S> <C> <C> <C> <C>
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
=========== ========== ========= ========
<PAGE>
<FN>
- --------------
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.
</FN>
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
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
----------------- -------------- ----------- ---------
<S> <C> <C> <C> <C>
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
=========== =======
<FN>
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.
</FN>
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
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
----------------- -------------- ----------- ---------
<S> <C> <C> <C> <C>
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
=========== ========
<FN>
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.
</FN>
</TABLE>
EXHIBIT 99.3
INDEPENDENT AUDITOR'S REPORT
ATLANTIC TELCO JOINT VENTURE
DECEMBER 31, 1993
<PAGE>
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
