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Previous: CFW COMMUNICATIONS CO, 8-K, EX-99, 2000-10-10 |
Next: CFW COMMUNICATIONS CO, S-4/A, 2000-10-10 |
<PAGE>
EXHIBIT 99.3.4
WEST VIRGINIA PCS ALLIANCE, L.C.
CONDENSED BALANCE SHEETS
June 30, 2000 and December 31, 1999
<TABLE>
<CAPTION>
June 30, 2000 December 31, 1999
----------------- -----------------------
(Unaudited)
<S> <C> <C>
ASSETS
Current Assets
Cash and cash equivalents $ 10,053,155 $ 8,120
Accounts receivable, net of allowance of $400 ($100 in 1999) 2,235,346 832,763
Other receivables 270,556 175,376
Inventories 1,512,073 1,281,241
Prepaid expenses 140,884 69,049
------------ ------------
Total current assets 14,212,014 2,366,549
Subordinated Capital Certificates 2,554,143 2,506,255
------------ ------------
Property and Equipment
Land and building 948,060 942,988
Network plant and equipment 29,292,819 33,898,373
Furniture, fixtures and other equipment 1,964,399 1,330,005
Radio spectrum licenses 6,132,100 6,132,100
------------ ------------
Total in service 38,337,378 42,303,466
Under construction 11,442,244 5,436,007
------------ ------------
49,779,622 47,739,473
Less accumulated depreciation 3,244,889 2,317,215
------------ ------------
46,534,733 45,422,258
------------ ------------
Other Assets
Radio spectrum licenses 2,870,928 2,844,772
Other 533,612 356,894
------------ ------------
3,404,540 3,201,666
------------ ------------
$ 66,705,430 $ 53,496,728
============ ============
LIABILITIES AND MEMBER'S DEFICIT
Current Liabilities
Accounts payable $ 6,494,430 $ 1,819,567
Due to affiliates 3,662,112 1,059,198
Accrued payroll 79,563 59,797
Advance billings 36,946 27,550
Accrued interest - 5,434
Other accrued liabilities 94,074 104,530
------------ ------------
Total current liabilities 10,367,125 3,076,076
Long-Term Liabilities
Long-term debt 51,136,389 51,125,102
Other long term liabilities 13,040,008 -
------------ ------------
64,176,397 51,125,102
Members' Deficit
Common membership interests (7,838,092) (704,450)
------------ ------------
$ 66,705,430 $ 53,496,728
============ ============
</TABLE>
See Notes to Financial Statements
1
<PAGE>
WEST VIRGINIA PCS ALLIANCE, L.C.
CONDENSED STATEMENTS OF OPERATIONS
<TABLE>
<CAPTION>
For the three months ending June 30, For the six months ending June 30,
--------------------------------------- -----------------------------------------
2000 1999 2000 1999
----------------- ------------------ -------------------- -------------------
<S> <C> <C> <C> <C>
Operating revenues:
Subscriber revenue $ 2,701,954 $ 250,421 $ 4,372,627 $ 406,942
Wholesale revenue 451,769 - 771,572 -
Equipment sales 301,311 102,261 768,909 192,012
------------ ------------ ------------ ------------
3,455,034 352,682 5,913,108 598,954
------------ ------------ ------------ ------------
Operating expenses:
Cost of sales 2,105,789 434,726 4,272,807 699,429
Maintenance and support 1,609,367 1,074,938 3,014,662 1,859,659
Depreciation and amortization 462,323 423,549 1,163,880 691,679
Customer operations 1,823,253 882,656 3,505,069 1,574,985
Corporate operations 567,191 598,571 1,026,470 1,006,053
------------ ------------ ------------ ------------
6,567,923 3,414,440 12,982,888 5,831,805
------------ ------------ ------------ ------------
Operating Loss (3,112,889) (3,061,758) (7,069,780) (5,232,851)
Interest income (expense)
Interest income 291,826 105,950 339,255 259,503
Senior credit facility (928,305) (313,905) (1,824,116) (475,640)
------------ ------------ ------------ ------------
(636,479) (207,955) (1,484,861) (216,137)
------------ ------------ ------------ ------------
Net Loss $ (3,749,368) $ (3,269,713) $ (8,554,641) $ (5,448,988)
============ ============ ============ ============
</TABLE>
See Notes to Financial Statements
2
<PAGE>
<TABLE>
<CAPTION>
WEST VIRGINIA PCS ALLIANCE, L.C.
CONDENSED STATEMENTS OF CASH FLOWS
Six Months Ended June 30, 2000 and 1999
2000 1999
--------------- -----------------
<S> <C> <C>
Cash Flows From Operating Activities
Net loss $ (8,554,641) $ (5,448,988)
Adjustments to reconcile net loss to net cash used in operating
activities:
Depreciation 1,377,891 687,568
Amortization 4,110 4,111
Amortization of gain on tower sale (218,120)
Changes in assets and liabilities
(Increase) in:
Accounts receivable (1,497,763) (311,989)
Inventories (230,832) (216,069)
Prepaid expenses (71,835) (55,892)
Increase (decrease) in:
Accounts payable 2,613,233 (216,595)
Advance billings and customer deposits 9,396 (3,700)
Accrued interest (5,434) (6,003)
Other accrued liabilities 9,310 62,519
------------ ------------
Net cash used in operating activities (6,564,685) (5,505,038)
------------ ------------
Cash Flows From Investing Activities
Purchase of property and equipment (12,252,890) (8,292,309)
Proceeds from sale of towers 25,212,960 -
Increase in deferred charges/credits (144,944) (14,868)
Increase in patronage capital certificates (192,718) -
------------ ------------
Net cash provided by (used in) investing activities 12,622,408 (8,307,177)
------------ ------------
Cash Flows From Financing Activities
Capital contributions, net 1,420,999 1,421,000
Advances from (Repayments to) affiliates 2,602,914 (2,284,423)
Borrowings on revolving credit agreements, net (1,000,000) -
Proceeds from long-term borrowings 963,399 14,676,119
------------ ------------
Net cash provided by financing activities 3,987,312 13,812,696
------------ ------------
Net increase in cash and cash equivalents 10,045,035 481
Cash and Cash Equivalents
Beginning 8,120 10,254
------------ ------------
Ending $ 10,053,155 $ 10,735
============ ============
</TABLE>
See Notes to Financial Statements
3
<PAGE>
WEST VIRGINIA PCS ALLIANCE, L.C.
STATEMENTS OF MEMBERS' EQUITY (DEFICIT)
(Unaudited)
Common
Membership
Interests
------------
Balance as of January 1, 1999 $ 11,162,026
Capital contributions 1,421,000
Net loss (2,179,278)
------------
Balance as of March 31, 1999 10,403,748
Net loss (3,269,708)
------------
Balance as of June 30, 1999 7,134,040
Net loss (3,146,097)
------------
Balance as of September 30, 1999 3,987,943
Net loss (4,692,393)
------------
Balance as of December 31, 1999 (704,450)
Capital contributions 1,421,000
Net loss (4,805,274)
------------
Balance as of March 31, 2000 (4,088,724)
Net loss (3,749,368)
------------
Balance as of June 30, 2000 $ (7,838,092)
============
See Notes to Financial Statements
4
<PAGE>
WEST VIRGINIA PCS ALLIANCE L.C.
-------------------------------
Notes to Financial Statements
-----------------------------
(1) In the opinion of the managing member of the Alliance, the accompanying
financial statements which are unaudited, except for the balance sheet
dated December 31, 1999, contain all adjustments (consisting of only normal
recurring accruals) necessary to present fairly the financial position as
of June 30, 2000 and December 31, 1999 and the results of operations for
the three months ended June 30, 2000 and 1999 and cash flows for the six
months ended June 30, 2000 and 1999. The results of operations for the six
months ended June 30, 2000 and 1999 are not necessarily indicative of the
results to be expected for the full year.
(2) In March 2000, the Alliance sold 67 towers for $20.6 million to Crown
Castle International Corp (Crown). In April 2000, the Alliance sold a total
of 15 towers for $3.3 million to Crown. In connection with these
transactions, the Alliance has certain future leaseback and other
commitments. Accordingly, these gains have been deferred for book purposes
and will be amortized over the life of the leaseback agreement.
(3) In January 2000, the members contributed $1.42 million to the Alliance,
purchasing 78,944.44 Common Membership units.
(4) In July 2000, the Alliance borrowed $49.1 million from CFW Communications
Company to payoff its indebtedness to the Rural Telephone Finance
Cooperative (RTFC). The payoff included a prepayment fee of $.3 million.
The Alliance's debt obligation to CFW bears interest at a rate equal to
CFW's borrowing rate under its Senior Credit Facility (10.6% in July 2000)
and matures in 2008.
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