UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Sections 13 and 15(d) of
the Securities Exchange Act of 1934
January 22, 1998
Date of Report (Date of earliest event reported)
SA TELECOMMUNICATIONS, INC.
(Exact Name of Registrant as Specified in its Charter)
Delaware 0-18048 75-2258519
(State of (Commission (IRS Employer
Incorporation) File Number) Identification No.)
1600 Promenade Center, 15th Floor
Richardson, TX 75080
(Address of Principal Executive Office)
(972) 690-5888
(Registrant's Telephone Number, Including Area Code)
(Not Applicable)
(Former Name or Former Address,
if Changed Since Last Report)
<PAGE>
ITEM 5. OTHER EVENTS
As previously reported, SA Telecommunications, Inc. and its subsidiaries
(collectively, the "Company") filed petitions for relief under Chapter 11 of the
United States Bankruptcy Code (the "Bankruptcy Code") in the United States
Bankruptcy Court for the District of Delaware (the "Bankruptcy Court") (Cases
No. 97-2395 through 97-2401). Since that date, the Company has continued as a
debtor-in-possession pursuant to the Bankruptcy Code.
On January 22, 1998, the Company filed its initial disclosure (the "Initial
Report") and Monthly Operating Report for the period of November 20 through
November 30, 1997 (the "November MOR") with the Office of the United States
Trustee (the "Trustee"). On January 23, 1998, the Company filed the Initial
Report and the November MOR with the Bankruptcy Court.
A copy of the cover sheet to the Initial Report (the "Cover Sheet") is
attached hereto as Exhibit 99.1 and incorporated herein by reference.(1)
A copy of the November MOR is attached hereto as Exhibit 99.2 and
incorporated herein by reference.(2)
(1) Items 2 and 3 listed on the Cover Sheet are also attached as part of
Exhibit 99.1. Items 1 and 4-8 (inclusive), as well as any attachments or
exhibits referenced in Items 2 and 3, are not attached hereto, but are
available at the Office of the United States Trustee and the Bankruptcy
Court. In addition, the Company agrees that it will furnish a copy of any
omitted schedule or similar attachment to the Commission upon its request.
(2) The attachments and exhibits referenced in the November MOR are not
attached as part of Exhibit 99.2, but are available at the Office of the
United States Trustee and the Bankruptcy Court. In addition, the Company
agrees that it will furnish a copy of any omitted schedule or similar
attachment to the Commission upon its request.
ITEM 7. FINANCIAL STATEMENTS, PRO FORMA FINANCIAL INFORMATION AND EXHIBITS
(c) Exhibits:
99.1 Cover sheet for Office of United States Trustee - Region 3
Initial Reporting Requirements for All Chapter 11 Debtors.
99.2 Monthly Operating Report of the Company for the period of
November 20 through November 30, 1997.
SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934, as amended,
the Registrant has duly caused this report to be signed on its behalf by the
undersigned hereunto duly authorized.
SA TELECOMMUNICATIONS, INC.
DATE: January 30, 1998 BY: /s/ Albert B. Gordon, Jr.
-------------------------
Albert B. Gordon, Jr.
Chief Executive Officer
EXHIBIT
OFFICE OF THE U.S. TRUSTEE - REGION 3
INITIAL REPORTING REQUIREMENTS FOR ALL CHAPTER 11 DEBTORS
(file with U.S. Trustee within 20 days after petition filing)
Debtor Name: SA Telecommunications, Inc., et al
Case Number: 97-2395 (PJW) through 97-2401 (PJW) - Jointly Administered
Debtors are required to submit copies of items 1-6 only if they were prepared
previously.
= = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = =
<TABLE>
<CAPTION>
Explanation Document Previously Explanation
Required Documents Attached Submitted Attached
<S> <C> <C> <C>
1. Most recently prepared annual financial statements (x) ( ) ( )
(balance sheet and statement of income).
2. Most recently prepared (other than annual) balance (x) ( ) ( )
sheet.
3. Most recently prepared (other than annual) statement (x) ( ) ( )
of income.
4. Most recently filed State and Federal Payroll Tax (x) ( ) ( )
return.
5. Most recently filed Federal and State Income Tax (x) ( ) ( )
returns.
6. Most recently filed State sales tax return. (x) ( ) ( )
7. Proof of establishment of Debtor-in-Possession bank (x) ( ) ( )
accounts (submit voided checks).
8. Proof of insurance (submit declaration pages). (x) ( ) ( )
</TABLE>
The undersigned individual certifies under penalty of perjury (28 U.S.C. Section
1746) that to the best of the individual's knowledge, the documents appended are
the most recently prepared and/or available.
By: /s/ Albert B. Gordon, Jr. Dated: January 20, 1998
-----------------------------------
Interim CEO
-----------------------------------
Title of Debtor Representative
<PAGE>
<TABLE>
<S> <C>
In re: SA Telecommunications, Inc., AddTel Communications, Inc., Long Distance Network, Inc. Case Nos. 97-2395 through
North American Telecommunications Corporation, Uniquest Communications, Inc., 97-2401 (PJW)
U.S. Communications, Inc. and Southwest Long Distance Network, Inc. (Jointly Administered)
</TABLE>
- ------------------------------------------------------------------------------
SA TELECOMMUNICATIONS, INC., ET AL
INITIAL REPORTING REQUIREMENTS
- ------------------------------------------------------------------------------
ITEM #2 - NOVEMBER 1997 BALANCE SHEET
- ------------------------------------------------------------------------------
<PAGE>
In Re: SA Telecommunications, Inc. Accrual Basis - 2
Case Nos. 97-2395 (PJW) through 97-2401 (PJW)
COMPARATIVE BALANCE SHEET
4th Quarter
ASSETS Month Month
As of 11/30/97
1 Cash $ 121,406
2 Accounts Receivable (Net) 4,276,832
3 Inventory 136,875
4 Notes Receivable
5 Prepaid Expenses 316,484
6 Other (Attach List) 317,184
7 Total Current Assets 5,168,781 0
8 Property, Plant & Equipment 14,642,389
9 Less: Accumulated Depreciation/Depletion 2,901,818
10 Net Property, Plant & Equipment 11,740,571 0
11 Due From Affiliates & Insiders
12 Intangibles (Attach List) 25,218,756
12a Debt Issuance Cost 2,212,362
13 Other (Attach List) 263,125
14 Total Assets $44,603,595 0
POSTPETITION LIABILITIES
15 Accounts Payable 18,370
15a Accrued Telecommunications Cost 667,878
16 Taxes Payable 105,813
16a Accrued Taxes Payable
17 Notes Payable -
18 Professional Fees
19 Secured Debt -
20 Due To Affiliates & Insiders
21 Other (Attach List) 152,620
22 Total Postpetition Liabilities 944,681 0
PREPETITION LIABILITIES
23 Secured Debt 8,227,915
24 Priority Debt (Attach List) 624,551
24a Redeemable Preferred Stock 1,401,940
25 Unsecured Debt 45,481,335
26 Other (Attach List)
27 Total Prepetition Liabilities 55,735,741 0
28 Total Liabilities 56,680,422 0
EQUITY
29 Owner's Prepetition Equity (11,788,256)
30 Postpetition Cumulative Profit or (Loss) (288,571)
31 Total Equity (Deficit) (12,076,827) 0
32 Total Liabilities & Owner's Equity $44,603,595 0
<PAGE>
<TABLE>
<S> <C>
In re: SA Telecommunications, Inc., AddTel Communications, Inc., Long Distance Network, Inc. Case Nos. 97-2395 through
North American Telecommunications Corporation, Uniquest Communications, Inc., 97-2401 (PJW)
U.S. Communications, Inc. and Southwest Long Distance Network, Inc. (Jointly Administered)
</TABLE>
- -----------------------------------------------------------------------------
SA TELECOMMUNICATIONS, INC., ET AL
INITIAL REPORTING REQUIREMENTS
- -----------------------------------------------------------------------------
ITEM #3 - NOVEMBER 1997 INCOME SHEET
- -----------------------------------------------------------------------------
<PAGE>
<TABLE>
<CAPTION>
SA TELECOMMUNICATIONS, INC.
PROFIT AND LOSS
PRELIMINARY PRE POST TOTAL
NOV NOV NOV
ALL ALL ALL
-------------------- --------------------- -------------------
<S> <C> <C> <C>
REVENUE:
Telephone Charges 1,461,250 921,572 2,382,822
Service Fees 27,737 10,999 38,736
Equipment Sales/Rentals 1,629 2,123 3,752
Late Charges 4,382 13,901 18,283
Adjustments (53,921) (3,831) (57,752)
-------------------- --------------------- -------------------
TOTAL REVENUE 1,441,076 944,764 2,385,840
COST OF REVENUE:
Line Costs 1,057,223 667,878 1,725,101
Commissions 52,775 28,372 81,147
PIC Charges & Teleconferencing 3,464 - 3,464
Billing, Collection Fees & Other 115,134 4,833 119,967
-------------------- --------------------- -------------------
TOTAL COST OF REVENUE 1,228,596 701,083 1,929,679
GROSS PROFIT 212,480 243,680 456,161
14.7% 25.8% 19.1%
G & A EXPENSES:
Advertising - Employee 506 - 506
Advertising - Promotional 9,305 268 9,573
Charitable Contributions - - -
Courtesy Expense 150 - 150
Bad Debt Expense 70,343 40,726 111,069
Building Rent 27,069 10,188 37,257
Computer Expense 9,826 835 10,661
Contract Labor 15,092 1,092 16,184
Dues & Subscriptions (344) - (344)
Equipment Rental 2,980 215 3,196
Fees - Collections 2,098 - 2,098
Licenses, Permits & Fees 86 - 86
Bank Charges 1,942 2,749 4,691
Insurance - Auto 478 - 478
Insurance - Liability 9,616 - 9,616
Insurance - Employee Life 134 333 467
Office Equipment 40 - 40
Office Supplies 2,321 21 2,343
Other Expense 459 104 563
Penalties - - -
Postage & Freight 8,501 0 8,502
Printing Supplies - Billing 364 - 364
Professional Services 65,513 1,553 67,066
Professional Consultants 25,148 315 25,462
Public Reporting & Transfer Agent 3,437 - 3,437
Property Tax Expense 3,800 2,200 6,000
Repairs & Maintenance - Buildings 2,336 - 2,336
Repairs & Maintenance - Office Equip 7,887 - 7,887
Expendable Tools 269 - 269
Repairs & Maintenance - Office Equip 2,591 162 2,752
Salaries 177,253 277,531 454,784
Severance (Including P/R Tax) - - -
FICA Expense 13,724 15,412 29,136
SUI Expense 2,178 316 2,494
FUI Expense 260 48 308
Workers Compensation 2,003 1,576 3,579
Employee Group Health Insurance 20,932 14,712 35,644
Pension/401K Expense 1,431 - 1,431
Telephone Expense 29,428 3,818 33,246
Mobile Communications 715 - 715
Training & Seminars 2,301 - 2,301
Travel 14,497 1,130 15,627
Meals & Entertainment 287 - 287
Utilities 3,970 - 3,970
Capitalized Expense - - -
-------------------- --------------------- -------------------
TOTAL G&A EXPENSE 540,926 375,303 916,229
OPERATING INCOME (LOSS) (328,446) (131,622) (460,068)
OTHER INCOME (EXPENSE):
Gain/(Loss) Sale of Assets - - -
NATC Unusual Item and Other Reclass - - -
ADDTEL Integration Expense - - -
Interest Income 333 246 579
Other Income/(Expense) (10,332) (5,447) (15,779)
Depreciation & Amortization (250,019) (144,748) (394,767)
Interest Expense (216,857) (6,999) (223,856)
Income/Franchise Tax Expense - - -
Reorganization Costs (275,600) - (275,600)
-------------------- --------------------- -------------------
NET INCOME (LOSS) (1,080,922) (288,571) (1,369,492)
==================== ===================== ===================
</TABLE>
<TABLE>
<S> <C>
In re: SA Telecommunications, Inc., AddTel Communications, Inc., Long Distance Network, Inc. Case Nos. 97-2395 through
North American Telecommunications Corporation, Uniquest Communications, Inc., 97-2401 (PJW)
U.S. Communications, Inc. and Southwest Long Distance Network, Inc. (Jointly Administered)
</TABLE>
- ------------------------------------------------------------------------------
SA TELECOMMUNICATIONS, INC., ET AL
MONTHLY OPERATING REPORTING
- ------------------------------------------------------------------------------
NOVEMBER 20 THROUGH 30, 1997 MONTHLY OPERATING REPORT
- ------------------------------------------------------------------------------
<PAGE>
ACCRUAL BASIS - 1
Case No.: 97-02395PJW THRU 97-02401PJW
OFFICE OF THE UNITED STATES TRUSTEE - REGION 3
MONTHLY OPERATING REPORT
for the month ending November 30, 1997
==============================================================================
<TABLE>
<CAPTION>
Document Previously Explanation
Required Attachments: Attached Submitted Attached
<S> <C> <C> <C>
1. Tax Receipts ( ) (x) ( )
2. Bank Statements (x) ( ) ( )
3. Most recently filed Income Tax Return ( ) (x) ( )
4. Most recent Annual Financial Statements ( ) (x) ( )
prepared by accountant
</TABLE>
IN ACCORDANCE WITH TITLE 28, SECTION 1746, OF THE UNITED STATES CODE, I DECLARE
UNDER PENALTY OF PERJURY THAT I HAVE EXAMINED THE FOLLOWING MONTHLY OPERATING
REPORT (ACCRUAL BASIS-1 THROUGH ACCRUAL BASIS-9) AND THE ACCOMPANYING
ATTACHMENTS AND, TO THE BEST OF MY KNOWLEDGE, THESE DOCUMENTS ARE TRUE, CORRECT
AND COMPLETE. DECLARATION OF PREPARER (OTHER THAN RESPONSIBLE PARTY) IS BASED ON
ALL INFORMATION OF WHICH PREPARER HAS ANY KNOWLEDGE.
RESPONSIBLE PARTY:
/s/ Albert B. Gordon, Jr. CEO
- ------------------------------ -----------------------
SIGNATURE OF RESPONSIBLE PARTY TITLE
Albert B. Gordon, Jr. 1/20/98
- ------------------------------ -----------------------
PRINTED NAME OF RESPONSIBLE PARTY DATE
PREPARER:
/s/Mark S. Nutt Assistant Controller
- ------------------------------ -----------------------
SIGNATURE OF PREPARER TITLE
Mark S. Nutt 1/20/98
- ------------------------------ -----------------------
PRINTED NAME OF PREPARER DATE
All Chapter 11 debtors must file this report with the Court and serve a
copy on the United States Trustee no later than the 15th day of the month
following the end of the month covered by the report.
<PAGE>
In Re: SA Telecommunications, Inc. Accrual Basis - 2
Case Nos. 97-2395 (PJW) through 97-2401 (PJW)
COMPARATIVE BALANCE SHEET
4th Quarter
ASSETS Month Month
As of 11/30/97
1 Cash $ 121,406
2 Accounts Receivable (Net) 4,276,832
3 Inventory 136,875
4 Notes Receivable
5 Prepaid Expenses 316,484
6 Other (Attach List) 317,184
7 Total Current Assets 5,168,781 0
8 Property, Plant & Equipment 14,642,389
9 Less: Accumulated Depreciation/Depletion 2,901,818
10 Net Property, Plant & Equipment 11,740,571 0
11 Due From Affiliates & Insiders
12 Intangibles (Attach List) 25,218,756
12a Debt Issuance Cost 2,212,362
13 Other (Attach List) 263,125
14 Total Assets $44,603,595 0
POSTPETITION LIABILITIES
15 Accounts Payable 18,370
15a Accrued Telecommunications Cost 667,878
16 Taxes Payable 105,813
16a Accrued Taxes Payable
17 Notes Payable -
18 Professional Fees
19 Secured Debt -
20 Due To Affiliates & Insiders
21 Other (Attach List) 152,620
22 Total Postpetition Liabilities 944,681 0
PREPETITION LIABILITIES
23 Secured Debt 8,227,915
24 Priority Debt (Attach List) 624,551
24a Redeemable Preferred Stock 1,401,940
25 Unsecured Debt 45,481,335
26 Other (Attach List)
27 Total Prepetition Liabilities 55,735,741 0
28 Total Liabilities 56,680,422 0
EQUITY
29 Owner's Prepetition Equity (11,788,256)
30 Postpetition Cumulative Profit or (Loss) (288,571)
31 Total Equity (Deficit) (12,076,827) 0
32 Total Liabilities & Owner's Equity $44,603,595 0
<PAGE>
In Re: SA Telecommunications, Inc. Accrual Basis - 2
Case Nos. 97-2395 (PJW) through 97-2401 (PJW)
6 Other Current Assets
A/R - Jack Matz 15,214
A/R Prarie Systems, Inc. 59,917
A/R Line Costs 93,368
Long Distance Network N/R 148,685
==================
317,184
==================
12 Intangibles
Goodwill (net of amortization) 25,218,756
==================
13 Other Non-Current Assets
Prepaid Employee Settlement (net) 240,953
Security Deposits 22,172
==================
263,125
==================
21 Other Post Petition Liabilities
Accr Payroll/Payroll Taxes/Benefits 131,881
Accr Audit Fees -
Accr Property Taxes 20,739
Accr Sales Taxes -
Accr Interest -
Accr Dividends Payable -
------------------
152,620
==================
24 Priority Debt
Accrued Payroll 100,674
Accrued Property Taxes 119,375
Accrued Sales Taxes 404,502
------------------
624,551
==================
<PAGE>
Case Nos. 97-2395 (PJW) through 97-2401 (PJW) Accrual Basis - 3
SA Telecommunications, Inc.
INCOME STATEMENT
4th Quarter
Month Month Month
Nov. 19, 1997
through
Nov. 30, 1997
REVENUES
1 Gross Revenues $ 944,763
2 Less: Returns & Discounts
3 Net Revenue $ 944,763 0 0
COSTS OF GOODS SOLD
4 Beginning Inventory
5 Add: Purchases
6 Less: Ending Inventory
7 Cost Of Goods sold 701,083 0 0
8 Gross Profit 243,680 0 0
OPERATING EXPENSES
9 Officer/Insider Compensation
10 Direct Labor/Salaries
11 Payroll Taxes
12 Rent & Lease Expense
13 Insurance
14 Depreciation/Amortization 144,748
15 General & Administrative 375,303
16 Other (Attach List)
17 Total Operating Expenses 520,051 0 0
18 Operating Income $ (276,371) 0 0
OTHER INCOME & EXPENSES
19 Other Income (Attach List)
20 Other Expenses (Attach List)
21 Interest Expense (6,999)
22 Other (Attach List) (5,201)
23 Net Other Income & Expenses (12,200) 0 0
REORGANIZATION EXPENSES
24 Professional Fees
25 U.S. Trustee Fees
26 Other (Attach List)
27 Total Reorganization Expenses 0 0 0
28 Income Tax
29 NET PROFIT (LOSS) $ (288,571) - -
<PAGE>
Case Nos. 97-2395 (PJW) through 97-2401 (PJW) Accrual Basis - 4
CASH RECEIPTS AND DISBURSEMENTS
TOTAL SATEL
1. BEG. BAL 209,023.18
2. CASH SALES -
3. RECEIPTS 827,242.60
4. LOANS & ADVANCES -
5. SALE ASSETS -
6. (OTHER) PAYDOWNS ON REVOLVER (650,898.90)
----------------------
7. TOTAL RECEIPTS 176,343.70
8. TOTAL CASH AVAIL. 75,662.52
----------------------
* DISBURSEMENTS (111,418.38)
EOM BALANCE (62,909.30)
======================
*See attached detail of disbursements by check number, date, payee and amount.
<PAGE>
Case Nos. 97-2395 (PJW) through 97-2401 (PJW) Accrual Basis - 4
SA Telecommunications, Inc. and Subsidiaries
FOR THE PERIOD OF NOVEMBER 20, 1997 THROUGH NOVEMBER 30, 1997
Current Month Disbursements
Check Number Check Date Payee Amount
For detail see attached computer-output generated information in above format.
<TABLE>
<CAPTION>
<S> <C> <C>
Operating Account Disbursements
US Communications, Inc. Subtotal of Page 1 attached. $ 37,039.47
US Communications, Inc. Subtotal of Page 2 attached. 71,824.56
US Communications, Inc. Subtotal of Page 3 attached. 6,331.99
AddTel Communications, Inc. Subtotal of Page 4 attached. 102,292.77
Uniquest Communications, Inc. None
===================
Total Of Operating Account Disbursements $217,488.79
===================
Payroll Account Disbursements
US Communications, Inc. Total of Paycheck Register attached $ 30,150.65
US Communications, Inc. Total of Direct Deposits Listing attached $ 81,267.73
AddTel Communications, Inc. None
Uniquest Communications, Inc. None
===================
Total Of Payroll Account Disbursements $111,418.38
===================
Grand Total $328,907.17
===================
</TABLE>
<PAGE>
Debtor: SA Telecommunications, Inc. and Subsidiaries Accrual Basis - 5
Case No.: 97-2395 through 97-2401
ACCOUNTS RECEIVABLE AGING
0-30 days old $ 3,653,975
31-60 days old 928,956
61-90 days old 421,222
91+ days old 1,924,677
Total Accounts Receivable $ 6,928,830
Amount Considered Uncollectable 2,651,998
Account Receivable $ 4,276,832
AGING OF POSTPETITION ACCOUNTS PAYABLE
0-30 31-60 61-90 91+
DAYS DAYS DAYS DAYS TOTAL
ACCOUNTS PAYABLE $ 18,367 $ 18,367
STATUS OF POSTPETITION TAXES
<TABLE>
BEGINNING AMOUNT ENDING
TAX WITHHELD AMOUNT TAX DELINQUENT
LIABILITY* OR ACCRUED PAID LIABILITY TAXES
<S> <C> <C> <C> <C> <C>
FEDERAL
Withholding** 18,354 18,354
FICA-Employee** 10,384 10,384
FICA-Employer** 10,384 10,384
Unemployment 77 77
Income
Other (Attach List)
Total Federal Taxes - 39,199 39,199
STATE AND LOCAL
Withholding 155 155
Sales 53,485 53,485
Excise
Unemployment 303 303
Real Property
Personal Property
Other (Attach List)
Total State & Local - 53,943 53,943
Total Taxes - 93,142 93,142
<FN>
*The beginning tax liability should represent the liability from the prior month
or, if this is the first operating report, the amount should be zero.
**Attach photocopies of IRS Form 6123 or your FTD coupon and payment receipt to
verify payment or deposit.
</FN>
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
Case Nos. 97-2395 (PJW) through 97-2401 (PJW) SA TELECOMMUNICATIONS, INC. ACCRUAL BASIS - 6
BANK RECONCILIATIONS Acct #1 Acct #2 Acct #3 Acct #4 Acct #5
USC USC USC NEC LDN
A. Bank Compass Compass Compass Various Southwest Bank
B. Acct # 701-8488-5 708-52772-2 708-5279-9 Misc 9050078
C. Purpose A/P-Oper Concentration Payroll Depository Savings
- ------------------------------------ -------- ------------- ------- ---------- -------
<S> <C> <C> <C> <C> <C>
1 Balance per Bank Statement - 111,918.71 (64,602.42) 17,653.81 3,207.46
2 + Deposits not credited
3 - Outstanding Checks (58,842.16) 5,239.99 (35,118.45) - -
4 +/- Other Reconciling items 64,502.21 (71,824.02) (14,790.82) - -
------------- ---------------- --------------- ------------- ------------------
5 Month End Balance per books 5,660.05 45,334.68 (114,511.69) 17,653.81 3,207.46
------------- ---------------- --------------- ------------- ------------------
6 Last Check Written
7 Total Cash End of Month
BANK RECONCILIATIONS Acct #6 Acct #7 Acct #8 Acct #9
USC USC USC AddTel
A. Bank Compass Compass na Wells Fargo
B. Acct # 712-0018-3 11-110098 Petty Cash 690018810
C. Purpose Greyrock Insurance Accounts Sales Tax Acct
- ------------------------------------ -------- --------- -------- --------------
<S> <C> <C> <C> <C>
1 Balance per Bank Statement 22,614.00 86,193.47 2,035.33 10,891.00
2 + Deposits not credited
3 - Outstanding Checks - (118,907.31) - (9,578.88)
4 +/- Other Reconciling items - (1,988.37) -
-------------- ------------- -------------- ---------------
5 Month End Balance per books 22,614.00 (34,702.21) 2,035.33 1,312.12
-------------- ------------- -------------- ---------------
6 Last Check Written (52,708.57)
7 Total Cash End of Month
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
Case Nos. 97-2395 (PJW) through 97-2401 (PJW) SA TELECOMMUNICATIONS, INC. ACCRUAL BASIS - 6
BANK RECONCILIATIONS Acct #10 Acct #11 Acct #12 Acct #13 Acct #14
AddTel AddTel AddTel AddTel AddTel
A. Bank Wells Fargo Wells Fargo Wells Fargo Wells Fargo Wells Fargo
B. Acct # 0933 051211 1290-000025-000 4443-332515 4443-332762 0933 041063
C. Purpose Sweep CD Greyrock Returned Checks Amtec
- ------------------------------------ ----- -- -------- --------------- -----
<S> <C> <C> <C> <C> <C>
1 Balance per Bank Statement 121,175.64 20,526.14 38,859.77 61,139.71 2,475.57
2 + Deposits not credited
3 - Outstanding Checks (5,039.53)
4 +/- Other Reconciling items (51,015.35) (0.08) 54.27
------------- ------------------- -------------- ----------------- --------------
5 Month End Balance per books 65,120.76 20,526.14 38,859.69 61,193.98 2,475.57
------------- ------------------- -------------- ----------------- --------------
6 Last Check Written
- ------------------------------------ ------------- ------------------- -------------- ----------------- --------------
7 Total Cash End of Month
BANK RECONCILIATIONS Acct #15 Acct #16 Acct #17 Acct #18
AddTel AddTel Uniquest Uniquest
A. Bank Wells Fargo na Compass Bank of America
B. Acct # 934 041063 711 9526 0 83130 00519
C. Purpose Payroll Petty Cash A/P Payroll
- ------------------------------------ ------- ---------- --- -------
<S> <C> <C> <C> <C>
1 Balance per Bank Statement (42,372.30) 500.00 25,795.23 1,358.21
2 + Deposits not credited
3 - Outstanding Checks - (29.73) (625.07)
4 +/- Other Reconciling items (0.01)
-------------- ------------ ------------- -----------------
5 Month End Balance per books (42,372.30) 500.00 25,765.50 733.13
-------------- ------------ ------------- -----------------
6 Last Check Written 147,615.96 26,498.63
- ------------------------------------ -------------- ------------ ------------- -----------------
121,406.02
=================
7 Total Cash End of Month 121,406.02
=================
</TABLE>
<PAGE>
Case Nos. 97-2395 (PJW) through 97-2401 (PJW) Accrual Basis - 7
SA Telecommunications, Inc.
and Subsidiaries
OF THE TOTAL DISBURSEMENTS SHOWN FOR THE MONTH, LIST THE AMOUNT PAID TO INSIDERS
(AS DEFINED IN SECTION 101(31)(A)-(F) OF THE BANKRUPTCY CODE) AND TO
PROFESSIONALS FOR PAYMENTS TO INSIDERS, IDENTIFY THE TYPE OF COMPENSATION PAID
(e.g. SALARY, BONUS, COMMISSION, INSURANCE, HOUSING ALLOWANCE, TRAVEL CAR
ALLOWANCE, ETC.) ATTACH ADDITIONAL SHEETS IF NECESSARY.
<TABLE>
<CAPTION>
INSIDERS
Cumulative
Type of Amount Unpaid
Name Position Payment Paid Balance
- ----------------------------- ----------------------------------- ------------- ---------------- ----------------
<S> <C> <C> <C> <C>
1 Igor Mamantov VP-Corp Development Payroll $ 1,959.87
2 Dennis Lee Gundy VP-Operations Payroll 3,121.81
3 Jeffery M. Petrie VP-Telemarketing Payroll 2,138.23
4 Windle R. Ewing VP-Tariffs and Reg Affair Payroll 1,867.39
5 Thomas J. Brighi VP-Telemarketing Payroll 2,353.30
6 George M. Trevino Controller Payroll 2,347.86
7 Kellie Watts Asst. General Counsel Payroll 2,132.27
8 Julie Judd HR Administrator Payroll 796.92
9 Cheryl Leahy Asst. Controller Payroll 1,665.42
Total Payments to Insiders $18,383.07
</TABLE>
<TABLE>
<CAPTION>
PROFESSIONALS
Date of
Court Order Total
Type of Authorizing Amount Amount Paid
Name Professional Payment Approved Paid To Date
- -------------------- ------------------ ------------------- ------------------ ------------------ -------------------
<S> <C> <C> <C> <C> <C>
1
2 None None None None None None
3
4
Total Payments to Professionals
</TABLE>
<TABLE>
<CAPTION>
ADEQUATE PROTECTIONS PAYMENTS
Scheduled Monthly Amounts Paid Total Unpaid
Name of Creditor Payments Due During the Month Post Petition
- ----------------------------- ----------------------------- ---------------------------- ----------------------------
<S> <C> <C> <C>
1
2 None None None
3
4
Total
</TABLE>
<PAGE>
ACCRUAL BASIS - 8
97-02395PJW THRU 97-02401PJW
<TABLE>
<CAPTION>
QUESTIONNAIRE
YES NO
-------------- -------------
<S> <C> <C>
1. Have any assets been sold or transferred outside the normal course of X
business this reporting period?
2. Have any funds been disbursed from any account other than a debtor in X1
possession account?
3. Are any postpetition receivables (accounts, notes, or loans) due from X
related parties?
4. Have any payments been made on prepetition liabilities this reporting X2
period?
5. Have any postpetition loans been received by the debtor from any party? X3
6. Are any postpetition payroll taxes past due? X
7. Are any postpetition state or federal income taxes past due? X
8. Are any postpetition real estate taxes past due? X
9. Are any other postpetition taxes past due? X
10. Are any amounts owed to postpetition creditors past due? X
11. Have any prepetition taxes been paid during the reporting period? X
12. Are any wage payments past due? X
</TABLE>
If the answer to any of the above questions is "YES", provide a detailed
explanation of each item. Attach additional sheets if necessary.
1 Pre-petition accounts retained during this period per Court Order.
2 Only items (such as payroll and benefits) approved by Court Order.
3 Only amounts per D.I.P. Financing Agreement approved by Court Order.
<TABLE>
<CAPTION>
INSURANCE
YES NO
-------------- -------------
<S> <C> <C>
1. ARE WORKER'S COMPENSATION, GENERAL LIABILITY AND OTHER NECESSARY INSURANCE X
COVERAGES IN EFFECT?
2. ARE ALL PREMIUM PAYMENTS PAID CURRENT? X
3. PLEASE ITEMIZE POLICIES BELOW.
</TABLE>
If the answer to any of the above questions is "no", or if any policies have
been cancelled or not renewed during this reporting period, provide an
explanation below. Attach additional sheets if necessary.
INSURANCE POLICIES
TYPE OF PAYMENT AMOUNT
POLICY CARRIER PERIOD COVERED & FREQUENCY
- ---------- --------- --------------- ----------------
SEE ATTACHED SCHEDULE OF CURRENT POLICIES
<PAGE>
Case Nos. 97-2395 (PJW) through 97-2401 (PJW) Accrual Basis - 9
SA Telecommunications, Inc.
and Subsidiaries
<TABLE>
<CAPTION>
PERSONNEL
FULL TIME PART TIME
TOTAL TOTAL
-------------- --------------
<S> <C> <C>
1. Total number of employees at beginning of period 190 22
2. Total number of employees hired during the period - 2
3. Number of employees terminated or resigned during the period 2 2
4. Total number of employees on payroll at end of period 188 22
</TABLE>
CHANGE OF ADDRESS
If your mailing address has changed and you have not previously notified the
United States Trustee of the change, list your new address below:
DATE OF CHANGE:
NEW ADDRESS:
