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Previous: MUNIENHANCED FUND INC, NSAR-B, 1998-03-25 |
Next: ABATIX ENVIRONMENTAL CORP, 10-K, 1998-03-25 |
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
March 19, 1998
Date of Report (Date of earliest event reported)
SA TELECOMMUNICATIONS, INC.
(Exact Name of Registrant as Specified in its Charter)
Delaware 0-18048 75-228519
(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 or about March 19, 1998, the Company filed its Monthly Operating
Report for the month ending February 28, 1998 (the "February MOR") with the
Office of the United States Trustee (the "Trustee") and the Bankruptcy Court.
A copy of the February MOR is attached hereto as Exhibit 99.1 and
incorporated herein by reference.1
ITEM 7. FINANCIAL STATEMENTS, PRO FORMA FINANCIAL INFORMATION AND EXHIBITS
(c) Exhibits:
99.1 Monthly Operating Report of the Company for the month ending
February 28, 1998.
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: March 25, 1998 By: /s/ Albert B. Gordon, Jr.
-------------------------
Albert B. Gordon, Jr.
Chief Executive Officer
- -----------------------
1 The attachments and exhibits referenced in the February MOR are not
attached as part of Exhibit 99.1, 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.
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 February 28, 1998
<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 ( ) (X) ( )
Income Tax Return
4. Most recent Annual ( ) (X) ( )
Financial Statements
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/ A. B. Gordon, Jr. Chief Executive Officer
- ----------------------------------- --------------------------------
SIGNATURE OF RESPONSIBLE PARTY TITLE
A. B. Gordon, Jr. 3/18/98
- ----------------------------------- --------------------------------
PRINTED NAME OF RESPONSIBLE PARTY DATE
PREPARER:
/s/ M. S. Nutt Asst. Controller
- ----------------------------------- --------------------------------
SIGNATURE OF PREPARER TITLE
M. S. Nutt March 18, 1998
- ----------------------------------- --------------------------------
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)
<TABLE>
<CAPTION>
COMPARATIVE BALANCE SHEET
1st Quarter
ASSETS Month Month Month
1/31/98 2/28/98 3/31/98
------- ------- -------
<S> <C> <C> <C> <C>
1 Cash $ 56,825 $ (147,413)
2 Accounts Receivable (Net) 4,063,411 4,254,860
3 Inventory 136,875 136,875
4 Notes Receivable
5 Prepaid Expenses 269,620 244,013
6 Other (Attach List) 317,184 316,817
7 Total Current Assets 4,843,915 4,805,152 0
8 Property, Plant & Equipment 14,596,991 14,602,562 0
9 Less: Accumulated
Depreciation/Depletion 3,183,388 3,340,989 0
10 Net Property, Plant & Equipment 11,413,603 11,261,573 0
11 Due From Affiliates & Insiders
12 Intangibles (Attach List) 24,870,240 24,695,982
12a Debt Issuance Cost 2,272,063 2,250,925
13 Other (Attach List) 234,700 224,563
14 Total Assets $43,634,521 $43,238,195 0
POSTPETITION LIABILITIES
15 Accounts Payable 168,963 398,454
15a Accrued Telecommunications Costs 1,407,067 1,363,186
16 Taxes Payable 188,155 361,122
16a Accrued Taxes Payable
17 Notes Payable -
18 Professional Fees
19 Secured Debt -
20 Due To Affiliates & Insiders
21 Other (Attach List) 305,224 165,386
22 Total Postpetition
Liabilities 2,069,409 2,288,148 0
PREPETITION
LIABILITIES
23. Secured Debt 8,051,318 8,202,228
24. Priority Debt (Attach List) 404,640 183,012
24a Redeemable Preferred Stock 1,401,940 1,401,940
25 Unsecured Debt 45,187,058 45,203,672
26 Other (Attach List)
27 Total Prepetition Liabilities 55,044,956 54,990,852 0
28 Total Liabilities 57,114,365 57,279,000 0
EQUITY
29 Owner's Prepetition Equity (11,788,256) (11,788,256)
30 Postpetition Cumulative
Profit or (Loss) (1,691,588) (2,252,549)
31. Total Equity (Deficit) (13,479,844) (14,040,805) 0
32 Total Liabilities &
Owner's Equity $43,634,521 $43,238,195 0
</TABLE>
<PAGE>
In Re: SA Telecommunications, Inc. Accrual Basis-2
Case Nos. 97-2395 (PJW) THROUGH 97-2401 (PJW)
<TABLE>
<CAPTION>
MONTH MONTH MONTH
1/31/98 2/28/98 3/3 1/98
------- ------- --------
<S> <C> <C> <C>
6 Other Current Assets
A/R-Jack Matz 15,214 15,214
A/R Prarie Systems, Inc. 59,917 59,917
A/R Line Costs 93,368 93,001
Long Distance Network N/R 148,685 148,685
-----------------------------------------------------------
317,184 316,817 0
===========================================================
12 Intangibles
Goodwill (net of amortization) 24,870,240 24,695,982 0
===========================================================
13 Other Non-Current Assets
Prepaid Employee Settlement (net) 212,528 212,528
Security Deposits & Miscellaneous 22,172 12,035
-----------------------------------------------------------
234,700 224,563 0
===========================================================
21 Other Post-Petition Liabilities
Accr Payroll/Payroll Taxes/Benefits 229,636 193,049
Accr Medical Ins 36,347 (35,290)
Accr Property Taxes 39,241 7,627
-----------------------------------------------------------
305,224 165,386 0
===========================================================
24 Priority Debt
Accrued Payroll/Employee Benefits 5,765 -
Accrued Property Taxes 80,876 71,162
Accrued Sales Taxes 317,999 111,850
-----------------------------------------------------------
404,640 183,012 0
===========================================================
</TABLE>
<PAGE>
Case No. Nos.-2395 (PJW) THROUGH 97-2401 (PJW) Accrual Basis -3
<TABLE>
SA TELECOMMUNICATIONS, INC.
INCOME STATEMENT
First Quarter
<CAPTION>
Month Month Month
----- ----- -----
Jan, 1998 Feb, 1998 Mar, 1998
--------- --------- ---------
<S> <C> <C> <C>
REVENUES
1 Gross Revenues $ 2,003,732 $ 1,998,012 $ -
2 Less: Returns & Discounts 23,613 29,905
3 Net Revenue $ 1,980,119 $ 1,968,107 $ -
COST OF GOODS SOLD
4 Beginning Inventory
5 Add: Purchases
6 Less: Ending Inventory
7 Cost Of Goods Sold 1,319,624 1,429,432
8 Gross Profit 660,495 538,675
OPERATING EXPENSES
9 Officer/Insider Compensation 84,756 25,424 -
10 Direct Labor/Salaries 369,547 316,434 -
11 Payroll Taxes 51,386 36,497 -
12 Rent & Lease Expense 57,350 76,289 -
13 Insurance 41,051 18,131 -
14 Depreciation/Amortization 388,115 381,483 -
15 General & Administrative 215,532 219,660 -
16 Other (Attach List)
17 Total Operating Expenses 1,207,737 1,073,918 -
18 Operating Income $ (547,242) $ (535,243) $ -
OTHER INCOME & EXPENSES
19 Other Income (Attach List)
20 Other Expenses (Attach List)
21 Interest Expense (87,767) (50,856) -
22 Other (7,161) 25,205 -
23 Net Other Income & Expenses (94,928) (25,651) -
REORGANIZATION EXPENSES
24 Professional Fees
25 U.S. Trustee Fees (2,453) -
26 Other (Attach List)
27 Total Reorganization Expenses (2,453) (67)
28 Income Tax
29 NET PROFIT (LOSS) $ (644,623) $ (560,961) $ -
</TABLE>
<PAGE>
Case Nos. 97-2395 (PJW) THROUGH 97-2401 (PJW) Accrual Basis -4
<TABLE>
CASH RECEIPTS AND
DISBURSEMENTS
<CAPTION>
TOTAL SATEL TOTAL SATEL TOTAL SATEL TOTAL SATEL TOTAL SATEL TOTAL SATEL
A/P MAIN OPER. P/.R GREYROCK MISC. CD & NEC
----------- ----------- ----------- ----------- ----------- -----------
<S> <C> <C> <C> <C> <C> <C>
1. BEG. BAL (292,510.71) 234,619.57 (71,191.26) 93,278.10 44,695.20 41,563.79
2. CASH - - - - - -
SALES
3. RECEIPTS - 1,982,446.39 - (5,330.48) -
4. LOANS & - - - - - -
ADVANCES
5. SALES - - - - - -
ASSETS
6. (OTHER)
PAYDOWNS
ON
REVOLVER 1,471,833.79 (1,124,517.88) 532,704.74 4,285.97 203,251.08 (868.35
------------ --------------- -------------- -------------- -------------- --------------
7. TOTAL
RECEIPTS 1,471,833.79 857,928.51 532,704.74 (1,044.51) 203,251.08 (868.35
8. TOTAL
CASH AVAIL. 1,179,323.08 1,092,548.08 461,513.48 92,233.59 247,946.28 40,695.44
------------ -------------- -------------- -------------- -------------- --------------
*DISBURSE-
MENTS (1,414,788.08) (1,059,484.70) (463,829.18) - (327,666.40) -
EOM
BALANCE (235,465.00) 33,063.38 (2,315.70) 92,233.59 (79,720.12) 40,695.44
--------------- -------------- --------------- -------------- --------------- --------------
<CAPTION>
TOTAL SATEL TOTAL SATEL
PETTY CASH
----------- -----------
<S> <C> <C>
1. BEG. BAL 6,369.95 56,824.64
2. CASH - -
SALES
3. RECEIPTS - 1,977,115.91
4. LOANS & - -
ADVANCES
5. SALES -
ASSETS
6. (OTHER)
PAYDOWNS
ON
REVOLVER (2,275.00) 1,084,414.35
--------------- --------------
7. TOTAL
RECEIPTS (2,275.00) 3,061,530.26
8. TOTAL
CASH AVAIL. 4,094.95 3,118,354.90
-------------- --------------
^DISBURSE-
MENTS - (3,265,768.36)
EOM
BALANCE 4,094.95 (147,413.46)
-------------- ---------------
* See attached detail of disbursements by check number, date, payee and amount.
</TABLE>
<PAGE>
Debtor: SA Telecommunications, Inc. Accrual Basis-5
and Subsidiaries
Case No: 97-2395 through 97-2401
ACCOUNTS RECEIVABLE AGING
0 - 30 days old $ 3,335,754
31 - 60 days old 883,951
61 - 90 days old 435,911
91 + days old 2,382,725
Total Accounts Receivable $ 7,038,341
Amount Considered Uncollectable 2,783,483
Account Receivable $ 4,254,858
<TABLE>
<CAPTION>
AGING OF POSTPETITION ACCOUNTS PAYABLE
0 - 30 31 - 60 61 - 90 91+
DAYS DAYS DAYS DAYS TOTAL
- ---------------------- ------------------ ------------------ ------------------ ------------------ ------------------
<S> <C> <C> <C> <C> <C>
ACCOUNTS PAYABLE $ 264,981 $ 133,473 $ 398,454
</TABLE>
<TABLE>
<CAPTION>
STATUS OF POSTPETITION TAXES
BEGINNING AMOUNT ENDING
TAX WITHHELD AMOUNT TAX DELINQUENT
LIABILITY* OR ACCRUED' PAID LIABILITY TAXES
---------- ----------- ---- --------- -----
<S> <C> <C> <C> <C>
Federal
Withholding** 11,270 23,297 30,111 4,456
FICA-Employee** 12,051 20,882 27,577 5,356
FICA-Employer" 12,051 20,882 27,577 5,356
Unemployment 1,189 2,029 2,343 875
Income
Other (Attach List)
Total Federal Taxes 36,561 67,090 87,608 16,043 -
State And Local
Withholding 143 280 265 158
Sales 333,418 * 178,405 150,703 361,120
Excise
Unemployment 893 6,752 2,825 4,820
Real Property
Personal Property
Other (Attach List)
Total State & Local 334,454 185,437 153,793 366,098 -
Total Taxes 371,015 252,527 241,401 382,141 -
<FN>
* The beginning liability for state and local sales tax includes an adjustment for $260,817 reclassed from prepetition sales tax
* 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>
Case Nos. 97-972395 (PJW) THROUGH 02401 (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 # 701-8488-5 708-5277-2 708-5279-9 Various 9050078
C. Purpose A/P-Oper Concentration Payroll Misc Depository Savings
-------- ------------- ------- --------------- -------
<S> <C> <C> <C> <C> <C>
1 Balance per Bank ...... (5,594.48) 42,784.61 -- 17,469.31 2,516.96
Statement
2 + Deposits not credited (2,023.69) -- 6.65
3 - Outstanding Checks .. (251,933.44) (50.00) 19,686.49 -- --
4 +/- Other Reconciling . 17,617.26 -- -- -- --
items
========== ========= ========= ========= ========
5 Month End Balance per . (239,910.66) 40,710.92 19,686.49 17,469.31 2,523.61
books ========== ========= ========= ========= ========
<CAPTION>
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 69001881(cents)
C. Purpose Greyrock Insurance Cash Accounts Sales Tax Acct
-------- --------- ------------- --------------
<S> <C> <C> <C> <C>
1 Balance per Bank ...... 53,142.31 26,472.93 586.43 9,271.35
Statement
2 + Deposits not credited --
3 - Outstanding Checks .. -- (114,261.71) -- --
4 +/- Other Reconciling . -- (1,202.66) -- --
items ========= ========== ====== ========
5 Month End Balance per . 53,142.31 (88,991.44) 586.43 9,271.35
books ========= ========== ====== ========
</TABLE>
<PAGE>
<TABLE>
Case Nos. 97-2395 (PJW) THROUGH 972401 (PJW) SA TELECOMMUNICATIONS, INC. ACCRUAL BASIS - 6
<CAPTION>
BANK RECONCILIATIONS Acct #10 Acct #11 Acct #12 Acct #13 Acct #14 Acct #15
AddTel AddTel AddTel AddTel AddTel AddTel
A. Bank Wells Fargo Wells Fargo Wells Fargo Wells Fargo Wells Fargo Wells Fargo
B. Acct # 0933 051211 1290-000025-000 4443-332515 4443-332762 0933 041063 934 041063
C. Purpose Sweep CD Greyrock Returned Checks - Payroll/ZBA
----- -- -------- --------------- ----------- -----------
<S> <C> <C> <C> <C> <C> <C>
1 Balance per Bank 20,153.32 20,702.52 39,091.28 - - -
Statement
2 + Deposits not credited -
3 - Outstanding Checks (36,591.17) (22,002.19)
4 +/- Other Reconciling (8,406.41) (0.08) - -
items ============== ================= ============= ================ =============== ================
5 Month End Balance per (24,844.26) 20,702.52 39,091.20 - - (22,002.19)
books ============== ================= ============= ================ =============== ================
<CAPTION>
BANK RECONCILIATIONS Acct #16 Acct #17 Acct #18
AddTel Uniquest Uniquest
A. Bank na Compass Bank of America
B. Acct # 7119526 0 83130 00519
C. Purpose Petty Cash A/P Payroll
---------- --- -------
<S> <C> <C> <C>
1 Balance per Bank 3,475.57 16,800.78 5,898.86
Statement
2 + Deposits not credited
3 - Outstanding Checks (1,057.80) -
4 +/- Other Reconciling 32.95 -
items ============== ================= ===============
5 Month End Balance per 3,475.57 15,775.93 5,898.86
books ============== ================= ===============
</TABLE>
<PAGE>
Case Nos. 97-2395 (PJW) THROUGH 972401 (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.
INSIDERS
<TABLE>
<CAPTION>
Type of Amount
Name Position Payment Paid
---- -------- ------- ----
<S> <C> <C> <C>
1 Igor Mamantov VP-Corp Development Payroll $ 4,252.47
2 Dennis Lee Gundy VP-Operations Payroll 2,602.12
3 Jeffery M. Petrie VP-Telemarketing Payroll 1,979.24
4 Windle R. Ewing VP-Tariffs and Reg. Affair Payroll 1,728.47
5 Thomas J. Brighi VP-Telemarketing Payroll Resigned
6 George M. Trevino Controller Payroll Resigned
7 Kellie Watts Asst. General Counsel Payroll Resigned
8 Julie Judd HR Administrator Payroll Resigned
9 Cheryl Leahy Asst. Controller Payroll Resigned
10 Chuck Leblo Payroll 7,692.30
Total Payments to Insiders $ 18,254.60
</TABLE>
<TABLE>
PROFESSIONALS
<CAPTION>
Date of Court Total
Type of Order Authorizing Amount Amount Paid
Name Professional Payment Approved Paid To Date
---------------- --------------------- --------------------- -------------- --------------------- ------------------
<S> <C> <C> <C> <C> <C> <C>
1
2 None None None None None
3
4
Total Payments to Professionals
</TABLE>
<TABLE>
ADEQUATE PROTECTIONS PAYMENTS
<CAPTION>
Scheduled Monthly Amounts Paid Total Unpaid
Name of Creditor Payments Due During the Month Post Petition
---------------- ------------ ---------------- -------------
<S> <C> <C> <C> <C>
1 None None -
2
3
4
5
Total $ - $ -
</TABLE>
<PAGE>
ACCRUAL EASIS-8
97-02395PJW THRU 97- 02401PJW
<TABLE>
QUESTIONNAIRE YES NO
- ------------- --- --
<S> <C> <C> <C>
1. Have any assets been sold or transferred outside the normal course of
business this recording period? X
2. Have any funds been disbursed from any account other
than a debtor in possession account? X (1)
3. Are any postpetition receivables (accounts, notes, or
loans) due from related parties? X
4. Have any payments been made on prepetition liabilities
this reporting period? X (2)
5. Have any postpetition loans been received by the debtor
from any party? X (3)
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
If the answer to any of the above questions is "YES", provide a detailed
explanation of each item. Attach additional sheets if necessary.
(1) Prepetition 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>
<TABLE>
INSURANCE YES NO
--- --
<S> <C> <C>
1. ARE WORKER'S COMPENSATION, GENERAL LIABILITY AND OTHER NECESSARY
INSURANCE COVERAGES IN EFFECT? X
2. ARE ALL PREMIUM PAYMENTS PAID CURRENT?
X
3. PLEASE ITEMIZE POLICIES BELOW.
If the answer to any of the above questions is "no", or if any policies have been canceled
or not renewed during this reporting period, provide an explanation below. Attached
additional sheets if necessary.
</TABLE>
<TABLE>
INSURANCE POLICIES
------------------
<CAPTION>
TYPE OF PAYMENT AMOUNT
POLICY CARRIER PERIOD COVERED & FREQUENCY
------ ------- -------------- -----------
<S> <C> <C> <C>
See attached schedule of current policies.
</TABLE>
<PAGE>
Case Nos. 97-2395(PJW) THROUGH 97-2401(PJW) Accrual Basis -9
SA Telecommunications, Inc.
and Subsidiaries
<TABLE>
PERSONNEL
---------
<CAPTION>
Full Time Part Time
Total Total
----- -----
<S> <C> <C> <C>
1. Total number of employees at beginning of period 150 18
2. Total number of employees hired during the period - -
3. Number of employees terminated or resigned during the period 14 -
4. Total number of employees on payroll at end of period 136 18
</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:
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