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
October 5, 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 October 5, 1998, the Company filed its Monthly Operating Report for
the month ending May 31, 1998 (the "May MOR") with the Office of the United
States Trustee (the "Trustee") and the Bankruptcy Court. On October 9, 1998, the
Company filed a corrected page to the May MOR with the Trustee and the
Bankruptcy Court.
A copy of the corrected May MOR is attached hereto as Exhibit 99.1 and
incorporated herein by reference.(1)
(1) The attachments and exhibits referenced in the May 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.
Item 7. Financial Statements, Pro Forma Financial Information and Exhibits
(c) Exhibits:
99.1 Corrected Monthly Operating Report of the Company for the month
ending May 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: October 15, 1998 By: /s/ Albert B. Gordon, Jr.
-------------------------
Albert B. Gordon, Jr.
Chief Executive Officer
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 May 31, 1998
Document Previously Explanation
Required Attached Submitted Attached
Attachments:
1. Tax Receipts ( ) (X) ( )
2. Bank Statements (X) ( ) ( )
3. Most recently ( ) (X) ( )
filed Income Tax
Return
4. Most recent ( ) (X) ( )
Annual Financial
Statements
prepared by
accountant
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/ Windle R. Ewing Vice President
- ------------------------------ ------------------------------
SIGNATURE OF RESPONSIBLE PARTY TITLE
Windle R. Ewing September 29, 1998
- ------------------------------ ------------------------------
PRINTED NAME OF RESPONSIBLE PARTY TITLE
PREPARER:
/s/ Tom Matta Accounting Manager
- ------------------------------ ------------------------------
SIGNATURE OF PREPARER TITLE
Tom Matta September 9, 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)
Comparative Balance Sheet
<TABLE>
<CAPTION>
Assets Month Month
4/30/98 5/31/98
<S> <C> <C> <C>
1 Cash $ 152,254 $ 413,241
2 Accounts Receivable (Net) 4,725,835 5,345,815
3 Inventory 34,190 34,190
4 Notes Receivable
5 Prepaid Expenses 31,822 25,487
6 Other (Attach List) 0 0
7 Total Current Assets $ 4,944,101 $ 5,818,733
8 Property, Plant & Equipment 14,723,390 14,708,881
9 Less: Accumulated
Depreciation/Depletion 9,121,547 9,119,449
10 Net Property, Plant & Equipment 5,601,843 5,589,432
11 Due From Affiliates & Insiders
12 Intangibles (Attach List) 5,026,018 5,026,018
12a Debt Issuance Cost 0 0
13 Other (Attach List) 0 0
14 Total Assets $15,571,962 $ 16,434,183
Postpetition Liabilities
15 Accounts Payable 7,996,599 8,698,111
15a Accrued Telecommunications Costs 927,207 972,164
16 Taxes Payable
16a Accrued Taxes Payable
17 Notes Payable
18 Professional Fees
19 Secured Debt
20 Due To Affiliates & Insiders
21 Other (Attach List)
22 Total Postpetition Liabilities $ 8,923,806 $ 9,670,274
Prepetition Liabilities
23. Secured Debt 7,481,709 7,930,339
24. Priority Debt (Attach List) 191,175 191,375
24a Redeemable Preferred Stock 1,620,000 1,620,000
25 Unsecured Debt 47,581,372 47,237,492
26 Other (Attach List)
27 Total Prepetition Liabilities $56,874,256 $56,979,206
28 Total Liabilities $65,798,062 $66,649,480
Equity
29 Owner's Prepetition Equity (12,258,875) (12,258,875)
30 Postpetition Cumulative
Profit or (Loss) (37,967,225) (37,956,422)
31. Total Equity (Deficit) $(50,226,100) $(50,215,297)
32 Total Liabilities & Owner's Equity $(15,571,962) $ 16,434,183
</TABLE>
<PAGE>
Case No. Nos.-2395 (PJW) THROUGH 97-2401 (PJW) Accrual Basis -3
SA Telecommunications, Inc.
Income Statement
<TABLE>
<CAPTION>
Month Month
Apr, 1998 May, 1998
--------- ---------
<S> <C> <C>
Revenues
1 Gross Revenues $ 2,028,347 $ 1,878,321
2 Less: Returns & Discounts 20,914 19,834
3 Net Revenue $ 2,007,433 $ 1,858,487
Cost Of Goods Sold
4 Beginning Inventory
5 Add: Purchases
6 Less: Ending Inventory
7 Cost Of Goods Sold 1,825,468 1,522,829
8 Gross Profit 181,965 335,658
Operating Expenses
9 Officer/Insider Compensation 43,212 14,615
10 Direct Labor/Salaries 261,852 120,645
11 Payroll Taxes 32,811 11,790
12 Rent & Lease Expense 22,165 24,935
13 Insurance 26,822 26,642
14 Depreciation/Amortization - -
15 General & Administrative 121,332 73,734
16 Other (Attach List)
17 Total Operating Expenses 508,194 272,361
18 Operating Income $ (326,229) $ 63,297
Other Income & Expenses
19 Other Income (Attach List)
20 Other Expenses (Attach List)
21 Interest Expense (68,661) (39,111)
22 Other (9,458) -
23 Net Other Income & Expenses (78,119) (39,111)
Reorganization Expenses
24 Professional Fees
25 U.S. Trustee Fees (28,569) (13,383)
26 Other (Attach List)
27 Total Reorganization Expenses
28 Income Tax
29 Net Profit (Loss) $ (432,917) $ 10,803
</TABLE>
<PAGE>
Case Nos. 97-2395 (PJW) THROUGH 97-2401 (PJW) Accrual Basis -4
CASH RECEIPTS AND
DISBURSEMENTS
<TABLE>
<CAPTION>
TOTAL SATEL TOTAL SATEL TOTAL SATEL TOTAL SATEL
A/P MAIN OPER. P/R GREYROCK
<S> <C> <C> <C> <C>
1. BEG. BAL (17,196.18) (140,693.72) 46,194.92 129,413.03
2. CASH - - - -
SALES
3. RECEIPTS - 1,863,022.68 - 51,768.98
4. LOANS & - - - -
ADVANCES
5. SALE - - - -
ASSETS
6. (OTHER)
PAYDOWNS
ON
REVOLVER
(443,834.83) 779,055.82 233,959.36 42,341.01
----------------- -------------- -------------- --------------
7. TOTAL
RECEIPTS (443,834.83) 2,642,078.50 233,959.36 94,109.99
8. TOTAL
CASH AVAIL. (461,031.01) 2,501,384.78 280,154.28 223,523.02
---------------- -------------- -------------- --------------
*DISBURSE-
MENTS - (2,027,241.53) (288,539.95) -
EOM
BALANCE (461,031.01) 474,143.25 (8,385.67) 223,523.02
--------------- -------------- --------------- --------------
TOTAL SATEL TOTAL SATEL TOTAL SATEL TOTAL SATEL
MISC. CD & NEC PETTY CASH
1. BEG. BAL 167,248.29 40,867.47 4,062.00 229,895.81
2. CASH - - - -
SALES
3. RECEIPTS - - - 1,914,791.66
4. LOANS & - - - -
ADVANCES
5. SALE - - - -
ASSETS
6. (OTHER)
PAYDOWNS
ON
REVOLVER 80,224.50 - - 691,745.86
---------------- -------------- -------------- --------------
7. TOTAL
RECEIPTS 80,224.50 - - 2,606,537.52
8. TOTAL
CASH AVAIL. 247,472.79 40,867.47 4,062.00 2,836,433.33
---------------- -------------- -------------- --------------
*DISBURSE-
MENTS (107,511.09) - - (2,423,292.57)
EOM
BALANCE 139,961.70 40,867.47 4,062.00 413,140.76
--------------- -------------- --------------- --------------
</TABLE>
* See attached detail of disbursements by check number, date, payee and amount.
<PAGE>
Debtor: SA Telecommunications, Inc. and Subsidiaries Accrual Basis-5
Case No: 97-2395 through 97-2401
Accounts Receivable Aging
0 - 30 days old $ 2,615,436
31 - 60 days old 834,356
61 - 90 days old 287,157
91 + days old 1,608,867
Total Accounts Receivable $ 5,345,816
Amount Considered Uncollectable -
Account Receivable $ 5,345,816
Aging Of Postpetition Accounts Payable
0 - 30 31 - 60 61 - 90 91+
Days Days Days Days Total
- --------------------------------------------------------------------------------
Accounts $ $ $ $ $
Payable 7,599,413 - - 1,098,698 8,698,111
Status Of Postpetition Taxes
Beginning Amount Ending
Tax Withheld Amount Tax Delinquent
Liability* Or Accrued Paid Liability Taxes
Federal
Withholding** 19,398 14,765 14,765 19,398
FICA-Employee** 11,488 9,163 9,163 11,488
FICA-Employer" 11,488 9,163 9,163 11,488
Unemployment 1,006 12 12 1,006
Income
Other (Attach
List)
Total Federal 43,380 33,103 33,103 43,380 -
Taxes
State And Local
Withholding 2,722 2,965 2,965 2,722
Sales 509,750 * 227,348 509,750
227,348
Excise
Unemployment 6,714 480 480 6,714
Real Property
Personal Property
Other (Attach
List)
Total State & 519,186 230,793 230,793 519,186 -
Local
Total Taxes 562,566 263,896 263,896 562,565 -
* 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
<PAGE>
<TABLE>
<CAPTION>
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 Wells Fargo Wells Fargo Wells Fargo Various Southwest Bank
B. Acct # 4311-269112 4311-269120 4311-269138 Various 9050078
C. Purpose A/P Operating Payroll Misc.Depository Savings
--- --------- ------- --------------- -------
<S> <C> <C> <C> <C> <C>
1 Balance per Bank - 275,662.88 - 17,469.31 2,516.96
Statement
2 + Deposits not credited - - 6.65
3 - Outstanding Checks (443,834.83) - - - -
4 +/- Other Reconciling - 139,808.13 - -
items 10,701.08
============== ================ ============== ================ ===============
5 Month End Balance per (443,834.83) 415,471.01 10,701.08 17,469.31 2,523.61
books
============== ================ ============== ================ ===============
BANK RECONCILIATIONS Acct #6 Acct #7 Acct #8 Acct #9
USC USC USC AddTel
A. Bank Compass Wells Fargo na Wells Fargo
B. Acct # 712-0018-3 4311-269146 Petty 690018810
C. Purpose Greyrock Insurance Cash Accounts Sales Tax Acct
-------- --------- ------------- --------------
<S> <C> <C> <C> <C>
1 Balance per Bank 112,018.94 137,656.82 586.43 15,099.44
Statement
2 + Deposits not credited
3 - Outstanding Checks - (12,794.56) - -
4 +/- Other Reconciling
items (827.49) - - -
================ =============== ================= ===============
5 Month End Balance per books 111,191.45 124,862.26 586.43 15,099.44
================ =============== ================= ===============
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
Case Nos. 97-2395 (PJW) THROUGH 972401 (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 Operating CD Greyrock Returned Checks -
--------- --------------- -------- ---------------
<S> <C> <C> <C> <C>
1 Balance per Bank 105,158.02 20,874.55 112,331.65 - -
Statement
2 + Deposits not credited
3 - Outstanding Checks (54,369.04)
4 +/- Other Reconciling (9,312.92) -
items (0.08)
============== ================= ============= ================ ===============
5 Month End Balance per 41,476.06 20,874.55 112,331.57 - -
books
============== ================= ============= ================ ===============
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/ZBA Petty Cash A/P Payroll
----------- ---------- --- -------
<S> <C> <C> <C> <C>
1 Balance per Bank - 3,475.57 - -
Statement
2 + Deposits not credited
3 - Outstanding Checks (19,551.91) - -
4 +/- Other Reconciling items 465.16 - -
================= =============== ================= ===============
5 Month End Balance per books (19,086.75) 3,475.57 - -
================= =============== ================= ===============
</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> <C>
1 Igor Mamantov VP-Corp Development Payroll Resigned
2 Dennis Lee Gundy VP-Operations Payroll $ 9,230.76
3 Jeffery M. Petrie VP-Telemarketing Payroll Resigned
4 Windle R. Ewing VP-Tariffs and Reg. Affair Payroll 5,384.60
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 Resigned
Total Payments to Insiders $ 14,615.36
Professionals
</TABLE>
<TABLE>
<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>
Adequate Protections Payments
<TABLE>
<CAPTION>
Scheduled Monthly Amounts Paid Total Unpaid
Name of Creditor Payments Due During the Month Post Petition
<S> <C> <C> <C>
1 None None -
2
3
4
5
Total $ - $ -
</TABLE>
<PAGE>
ACCRUAL BASIS-8
97-02395PJW THRU 97- 02401PJW
- --------------------------------------------------------- ---------- ----------
QUESTIONNAIRE YES NO
- --------------------------------------------------------- ---------- ----------
- --------------------------------------------------------- ---------- ----------
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.
- ------------------------------------------------------------------- ----------
INSURANCE YES NO
- -------------------------------------------------------- ---------- ----------
- -------------------------------------------------------- ---------- ----------
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.
<PAGE>
- -----------------------------------------------------------------------------
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
- -------------------------------------------------------------------------------
Personnel
- -------------------------------------------------------------------------------
- -------------------------------------------------------------------------------
Full Time Part Time
Total Total
1. Total number of employees at beginning of period 36 -
2. Total number of employees hired during the period - -
3. Number of employees terminated or resigned during 4 -
the period
4. Total number of employees on payroll at end of 32 -
period
- -------------------------------------------------------------------------------
- -------------------------------------------------------------------------------
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:
