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Previous: PLAYTEX PRODUCTS INC, DEF 14C, 1998-03-05 |
Next: WARBURG PINCUS INTERNATIONAL EQUITY FUND /PA/, 497, 1998-03-05 |
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
February 26, 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 February 26, 1998, the Company filed its Monthly Operating
Report for the month ending January 31, 1998 (the "January MOR") with the Office
of the United States Trustee (the "Trustee") and the Bankruptcy Court.
A copy of the January 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
January 31, 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 5, 1998 By: /s/ Albert B. Gordon, Jr.
------------------------
Albert B. Gordon, Jr.
Chief Executive Officer
- ----------
1 The attachments and exhibits referenced in the January 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.
<PAGE>
Case No.: 97-02395PJW THRU97-02401 PJW ACCRUAL BASIS-1
OFFICE OF THE UNITED STATES TRUSTEE -. REGION 3
MONTHLY OPERATING REPORT
for the month ending January 31, 1998
<TABLE>
<CAPTION>
REQUIRED ATTACHMENTS DOCUMENT ATTACHED PREVIOUSLY SUBMITTED EXPLANATION 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 ( ) ( X ) ( )
FINANCIAL STATEMENTS
PREPARED BY ACCOUNTANT
</TABLE>
IN ACCORDANCE WITH TITLE 28, SECTION 1746, OF THE UNITED STATES CODE . I DECLARE
UNDER PENALTY CF 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. CEO
- ------------------------------ --------------------
SIGNATURE OF RESPONSIBLE PARTY TITLE
A. B. Gordon Jr. 2/25/98
- ------------------------------ --------------------
PRINTED NAME OF RESPONSIBLE PARTY DATE
PREPARER:
/s/ M. S. Nutt Asst. Controller
- ------------------------------ --------------------
SIGNATURE OF PREPARER TITLE
M. S. Nutt 2/25/98
- ------------------------------ --------------------
PRINTED NAME OF PREPARER DATE
<PAGE>
<TABLE>
In Re: SA Telecommunications, Inc. Accrual Basis -2
Case Nos. 97-2395 (PJW) through 97-2401 (PJW)
COMPARATIVE BALANCE SHEET
1ST QUARTER
<CAPTION>
ASSETS Month Month Month
1/31/98 2/28/98 3/31/98
------- ------- -------
<S> <C> <C> <C>
1. Cash $ 56,825
2. Accounts Receivable (Net) 4,063,411
3. Inventory 136,875
4. Notes Receivable
5. Prepaid Expenses 269,620
6. Other (Attach List) 317,184
7. Total Current Assets 4,843,915 0 0
- -------------------------------------------- ------------ ------------- ------------
8. Property, Plant & Equipment 14,596,991 0 0
9. Less: Accumulated 3,183,388 0 0
Depreciation/Depletion
10. Net Property, Plant & Equipment 11,413,603 0 0
- -------------------------------------------- ------------ ------------- ------------
11. Due From Affiliates & Insiders 0 0
12. Intangibles (Attach List) 24,870,240
12a Debt Issuance Cost 2,272,063
13. Other (Attach List) 234,700
14. Total Assets 43,634,521 0 0
- -------------------------------------------- ------------ ------------- ------------
POSTPETITION LIABILITIES
15. Accounts Payable 168,963
15a Accrued Telecommunications Costs 1,407,067
16. Taxes Payable 188,155
16a Accrued Taxes Payable
17. Notes Payable -
18. Professional Fees
19. Secured Debt -
20. Due To Affiliates & Insiders
21. Other (Attach List) 305,224
22. Total Postpetition Liabilities 2,069,409 0 0
- -------------------------------------------- ------------ ------------- ------------
PREPETITION LIABILITIES
23. Secured Debt 8,051,318
24. Priority Debt (attach list) 404,640
24a Redeemable Preferred Stock 1,401,940
25. Unsecured Debt 45,187,058
26. Other (Attach List)
27. Total Prepetition Liabilities 55,044,956 0 0
- -------------------------------------------- ------------ ------------- ------------
28. Total Liabilities 57,114,365 0 0
- -------------------------------------------- ------------ ------------- ------------
EQUITY
29. Owner's Prepetition Equity (11,788,256)
30. Postpetition Cumulative Profit or (1,691,588)
(Loss)
31. Total Equity (Deficit) (13,479,844) 0 0
- -------------------------------------------- ------------ ------------- ------------
32. Total Liabilities & Owners' Equity 43,634,521 0 0
- -------------------------------------------- ------------ ------------- ------------
6 Other Current Assets
A.R - Jack Matz 15,214
A/R Prairie Systems, Inc. 59,917
A/R Line Costs 93,368
Long Distance Network N/R 148,685
------------ ------------- ------------
317,184 0 0
============ ============= ============
12 Intangible:
Goodwill (net of amortization) 24,870,240 0 0
============ ============= ============
13 Other Non-Current Assets
Prepaid Employee Settlement (net) 212,528
Security Deposits 22,172
------------ ------------- ------------
234,700 0 0
============ ============= ============
21 Other Post-Petition Liabilities
Accrued Payroll/Payroll 229,636
Taxes/Benefits
Accrued Medical Ins 36,347
Accrued Property Taxes 39,241
------------ ------------- ------------
305,224 0 0
============ ============= ============
24 Priority Debt
Accrued Payroll/Employee Benefits 5,765
Accrued Property Taxes 80,876
Accrued Sales Taxes 317,999
------------ ------------- ------------
404,640 0 0
============ ============= ============
</TABLE>
<PAGE>
<TABLE>
Case Nos. 97-2395 (PJW) through 97-2401 (PJW) Accrual Basis 3
SA Telecommunications, Inc.
INCOME STATEMENT
<CAPTION>
1st Quarter
Month Month Month
----- ----- -----
Jan, 1998 Feb, 1998 Mar, 1998
--------- --------- ---------
<S> <C> <C> <C>
REVENUES
1. Gross Revenues $ 2,003,732 $ - $ -
2. Less: Returns & Discounts 23,613 - -
3. Net Revenue $ 1,980,119 $ - $ -
- -------------------------------------------- ------------- --------- -------
COST OF GOODS SOLD
4. Beginning Inventory
5. Add: Purchases
6. Less: Ending Inventory
7. Cost Of Goods Sold 1,319,624 - -
8. Gross Profit 660,495 - -
- -------------------------------------------- ------------- --------- -------
OPERATING EXPENSES
9. Officer/Insider Compensation 84,756 - -
10. Direct Labor/Salaries 369,547 - -
11. Payroll Taxes 51,386 - -
12. Rent & Lease Expense 57,350 - -
13. Insurance 41,051 - -
14. Depreciation/Amortization 388,115 - -
15. General & Administrative 215,532 - -
16. Other (Attach List)
17. Total Operating Expenses 1,207,737 - -
18. Operating Income $ (547,242) $ - $ -
- -------------------------------------------- ------------- --------- -------
OTHER INCOME & EXPENSES
19. Other Income (Attach List)
20. Other Expenses (Attach List)
21. Interest Expense (87,767) - -
22. Other (7,161) - -
23. Net Other Income & Expenses (94,928) - -
- -------------------------------------------- ------------- --------- -------
REORGANIZATION EXPENSES
24. Professional Fees
25. U.S. Trustee Fees (2,453)
26. Other (Attach List)
27. Total Reorganization Expenses (2,453)
28. Income Tax
- -------------------------------------------- ------------- --------- -------
29. NET PROFIT (LOSS) $ (644,623) $ - $ -
- -------------------------------------------- ------------- --------- -------
</TABLE>
<PAGE>
<TABLE>
Case Nos. 97-2395 (PJW) through 97-2401 (PJW) Accrual Basis - 4
SA TELECOMMUNICATIONS
CASH RECEIPTS AND
DISBURSEMENTS
<CAPTION>
TOTAL SATEL TOTAL SATEL TOTAL SATEL TOTAL SATEL
A/P MAIN OPER. P/R GREYROCK
----------- ----------- ----------- -----------
<S> <C> <C> <C> <C>
1. BEG. BAL .............................. (256,873.07) 341,242.14 36,611.20 70,907.87
2. CASH SALES ............................ -- -- -- --
3. RECEIPTS .............................. 1,728.93 1,560,928.00 -- 19,944.59
4. LOANS & ADVANCES ...................... -- -- -- --
5. SALE ASSETS ........................... -- -- -- --
6. (OTHER) PAYDOWNS ON ................... 1,219,262.02 (632,117.91) 283,134.07 2,425.64
REVOLVER
--------------------------------------------------------------------------------
7. TOTAL RECIEPTS ........................ 1,220,990.95 928,810.09 283,134.07 22,370.23
8. TOTAL CASH AVAIL ...................... 964,117.88 1,270,052.23 319,745.27 93,278.10
--------------------------------------------------------------------------------
* DISBURSEMENTS .......................... (1,256,628.59) (1,035,432.66) (390,936.53) --
--------------------------------------------------------------------------------
EOM BALANCE .............................. (292,510.71) 234,619.57 (71,191.26) 93,278.10
================================================================================
<CAPTION>
TOTAL SATEL TOTAL SATEL TOTAL SATEL TOTAL SATEL
MISC. CD & NEC PETTY CASH
----------- ----------- ----------- -----------
<C> <C> <C> <C> <C>
1. BEG. BAL .................................. (20,443.30) 41,473.96 6,470.85 219,389.65
2. CASH SALES ................................ -- -- -- --
3. RECEIPTS .................................. -- 89.83 -- 1,582,691.35
4. LOANS & ADVANCES .......................... -- -- -- --
5. SALE ASSETS ............................... -- -- -- --
6. (OTHER) PAYDOWNS ON ....................... 154,043.63 -- (100.90) 1,026,646.55
REVOLVER
--------------------------------------------------------------------------------
7. TOTAL RECIEPTS ............................ 154,043.63 89.83 (100.90) 2,609,337.90
8. TOTAL CASH AVAIL .......................... 133,600.33 41,563.79 6,369.95 2,828,727.55
--------------------------------------------------------------------------------
* DISBURSEMENTS .............................. (88,905.13) -- -- (2,771,902.91)
--------------------------------------------------------------------------------
EOM BALANCE .................................. 44,695.20 41,563.79 6,369.95 56,824.64
================================================================================
*See attached detail of disbursements by check number, date, payee and amount.
</TABLE>
<PAGE>
<TABLE>
Debtor: SA Telecommunications, Inc. and Subsidiaries Accrual Basis-5
Case No: 97-2395 through 97-2401
ACCOUNTS RECEIVABLE AGING
<S> <C>
0 - 30 days old 3,376,822
31 - 60 days old 811,514
61 - 90 days old 414,944
91 + days old 2,241,417
Total Accounts Receivable $ 6,844,697
Amount Considered uncollectible 2,781,286
Account Receivable $ 4,063,411
AGING OF POSTPETITION ACCOUNTS PAYABLE
<CAPTION>
0 - 30 DAYS 31 - 60 DAYS 61 - 90 DAYS 91 + DAYS TOTAL
----------- ------------ ------------ --------- -----
<S> <C> <C> <C> <C> <C>
Accounts
Payable $ 158,852 $ 10,111.00 $ 168,963
STATUS OF POSTPETITION TAXES
<CAPTION>
BEGINNING TAX LIABILITY AMOUNT WITHHELD OR AMOUNT PAID ENDING TAX DELINQUENT TAXES
ACCRUED LIABILITY
----------------------- ------------------ ----------- ---------- ----------------
<S> <C> <C> <C> <C> <C>
FEDERAL
Withholding ** 5,609 43,725 38,064 11,270
FICA - Employee ** 8,829 26,306 23,084 12,051
FICA - Employer ** 8,829 26,306 23,084 12,051
Unemployment 20 3,396 2,227 1,189
Income
Other (Attach List)
Total Federal 23,287 99,733 86,459 36,561 -
Taxes
STATE AND LOCAL
Withholding 68 320 245 143
Sales 107,089 160,044 194,532 72,601
Excise
Unemployment 893 6,752 2,825 4,820
Real Property
Personal Property
Other (Attach List)
Total State & 108,050 167,116 197,602 77,564 -
Local
Total Taxes 131,337 266,849 284,061 114,125 -
* 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.
</TABLE>
<PAGE>
<TABLE>
Case Nos. 97-02395(PJW) thru 97-02401 (PJW) Accrual Basis-6
SA TELECOMMUNICATIONS, INC.
BANK RECONCILIATIONS Acct #1 Acct #2 Acct #3 Acct #4
- --------------------
<CAPTION>
A. Bank USC USC USC NEC
B. Acct # Compass Compass Compass Various
C. Purpose 701-8488-5 708-5277-2 708-5279-9 Various
A/P-Oper Concentration Payroll Misc Depository
-------- ------------- ------- ---------------
- --------------------------------
<S> <C> <C> <C> <C>
1 Balance per Bank ........................... (1,342.80) 172,738.24 -- 18,344.31
Statement
2 + Deposits not credited .................... (2,023.69) (12,050.82)
3 - Outstanding Checks ....................... (312,907.63) (50.00) (27,244.62) --
4 +/- Other Reconciling ...................... 17,294.06 (14,447.72) (564.86) --
Items
------------ ----------- ----------- ---------
5 Month End Balance per ...................... (296,956.37) 156,216.83 (39,860.30) 18,344.31
books ============ ----------- ----------- ---------
BANK RECONCILIATIONS Acct #5 Acct #6 Acct #7 Acct #8 Acct #9
- --------------------
<CAPTION>
A. Bank LDN USC USC USC Add Tel
B. Acct # Southwest Bank Compass Compass na Wells Fargo
C. Purpose 9050078 712-0018-3 11-110098 Petty 690018810
Savings Greyrock Insurance Cash Accounts Sales Tax Acct
------- -------- --------- ------------- --------------
<S> <C> <C> <C> <C> <C>
1 Balance per Bank .................... 2,516.96 58,472.79 56,376.71 2,861.43 19,121.22
Statement
2 + Deposits not credited
3 - Outstanding Checks ................ -- -- (1,224.75) -- --
4 +/- Other Reconciling ............... -- -- (29,577.95) -- --
Items
-------- --------- ----------- -------- ---------
5 Month End Balance per ............... 2,516.96 58,472.79 25,574.01 2,861,43 19,121.22
books ======== ========= =========== ======== =========
BANK RECONCILIATIONS Acct #10 Acct #11 Acct #12 Acct #13
- --------------------
<CAPTION>
A. Bank AddTel AddTel AddTel Addtel
B. Acct # Wells Fargo Wells Fargo Well Fargo Wells Fargo
C. Purpose 0933 051211 1290-000025-000 4443-332515 4443-332762
Sweep CD Greyrock Returned Checks
----------- --------------- ----------- ---------------
- ------------------------------------
<S> <C> <C> <C>
1 Balance per Bank Statement ........................ 86,669.89 20,702.52 34,805.39 --
2 + Deposits not credited ........................... (2,023.69) (12,050.82)
3 - Outstanding Checks .............................. 16,782.57) (50.00) (27,244.62)
4 +/- Other Reconciling Items ....................... (8,681.30) (0.08)
----------- ----------- ----------- ------
5 Month End Balance per books ....................... 61,206.02 20,702.52 34,805.31 --
6
=========== =========== =========== ======
BANK RECONCILIATIONS Acct #14 Acct #15 Acct #16 Acct #17 Acct # 18
- --------------------
<CAPTION>
AddTel AddTel Add Tel Uniquest Uniquest
A. Bank Wells Fargo Wells Fargo na Compass Bank of America
B. Acct # 0933 041063 934 041063 711 9526 0 83130 00519
C. Purpose Amtec/ZBA Payroll/ZBA Petty Cash A/P Payroll
----------- ----------- ---------- ------- ---------------
<S> <C> <C> <C> <C> <C>
1 Balance per Bank Statement ..................... -- -- 3,475.57 16,800.78 5,898.86
2 + Deposits not credited
3 - Outstanding Checks ........................... -- (1,057.80) --
4 +/- Other Reconciling Items .................... -- (31,330.96) 32.95 --
----------- ----------- ----------- ---------- --------
5 Month End Balance per books .................... -- (31,330.96) 3,475.57 15,775.93 5,898.86
=========== =========== =========== ========== ========
</TABLE>
<PAGE>
<TABLE>
Case Nos. 97-02395(PJW) thru 97-02401 (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
<CAPTION>
Name Position Type Of Amount Paid Cumulative
Payment Unpaid Balance
---- -------- ------- ----------- --------------
<S> <C> <C> <C> <C> <C.
1 Igor Mamantov VP-Corp Development Payroll $3,895.00
2 Dennis Lee Gundy VP-Operations Payroll 9,563.61
3 Jeffery M. Petrie VP-Telemarketing Payroll 6,380.83
4 Windle R. Ewing VP-Tariffs and Reg. Affair Payroll 6,294.65
5 Thomas J. Brighi VP-Telemarketing Payroll 4,723.02
6 George M. Trevino Controller Payroll 9,190.60
7 Kellie Watts Asst. General Counsel Payroll 1,837.62
8 Julie Judd HR Administrator Payroll -
9 Cheryl Leahy Asst. Controller Payroll 2,949.65
10 Chuck Leblo Payroll 9,493.66
Payroll
Total Payments to Insiders $ 54,328.64
PROFESSIONALS
<CAPTION>
Name Type of Professional Date of Court Order Amount Amount Total Paid
Authorizing 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>
Name Of Creditor Scheduled Monthly Amounts Paid Total Unpaid
Payments Due During the Month Post Petition
- ---------------- ------------ ---------------- -------------
<S> <C> <C> <C>
1 City of Levelland, TX $ 194.00 $ 194.00 -
2 Energas 11.00 11.00
3 Southwestern Bell 4,237.20 4,237.20
4 GTE 2,600.00 2,600.00
5 US West 1,000.00 1,000.00
Total $ 8,042.20 $ 8,042.20
</TABLE>
<PAGE>
<TABLE>
Case Nos. 97-02395(PJW) thru 97-02401 (PJW) Accrual Basis-8
QUESTIONNAIRE
<CAPTION>
YES NO
--- --
<S> <C> <C> <C>
1. Have any assets been sold or transferred outside the normal course of business this reporting X
period?
2. Have any funds been disbursed from any account other than a debtor in possession account? X<F1>
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<F2>
5. Have any postpetition loans been received by the debtor from any party? X3<F3>
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", please provide a detailed explanation of each item. Attach additional sheets
if necessary
<F1> Prepetition accounts retained during this period per court order
<F2> Only items such as payroll and benefits Approved by court order
<F3> Only amounts per D.I.P. Financing Agreement approved by court order
<CAPTION>
INSURANCE YES NO
- --------- --- --
<S> <C> <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 cancelled or not renewed during this
reporting period, provide an explanation below. Attach additional sheets if necessary.
INSURANCE POLICIES
------------------
<CAPTION>
TYPE OF POLICY CARRIER PERIOD COVERED PAYMENT AMOUNT & FREQUENCY
- -------------- ------- -------------- --------------------------
<S> <C> <C> <C>
See attached schedule of
Current Policies
PERSONNEL
---------
Full Time Part Time
Total Total
--------- ---------
<S> <C> <C> <C>
1. Total number of employees at beginning of period 168 18
2. Total number of employees hired during the period - -
3. Number of employees terminated or resigned during the period 18 -
4. Total number of employees on payroll at end of period 150 18
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:.
</TABLE>
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