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 3, 1999
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 February 3, 1999, the Company filed its Monthly Operating Reports for
the months ending August 31, 1998 (the "August MOR"), September 30, 1998 (the
"September MOR"), October 31, 1998 (the "October MOR") and, November 30, 1998
(the "November MOR") with the Office of the United States Trustee (the
"Trustee") and the Bankruptcy Court. On February 25, 1999, the Company filed its
Monthly Operating Report for the month ending December 31, 1998 (the "December
MOR") with the Trustee and the Bankruptcy Court. On March 18, 1999, the Company
filed its Monthly Operating Report for the month ending January 31, 1999 (the
"January MOR"). On March [26], 1999, the Company filed an Amended Monthly
Operating Report for the month ending November 30, 1998 (the "Amended November
MOR") with the Trustee and the Bankruptcy Court.
Copies of the August MOR, the September MOR, the October MOR, the November
MOR, the Amended November MOR, the December MOR and the January MOR are attached
hereto as Exhibits 99.1, 99.2, 99.3, 99.4, 99.5, 99.6, and 99.7, respectively,
and incorporated herein by reference.1
- ------------------------
1 The attachments and exhibits referenced in the August MOR, the September
MOR, the October MOR, the November MOR, the Amended November MOR, the
December MOR, and the January MOR are not attached as part of Exhibits
99.1, 99.2, 99.3, 99.4, 99.5, 99.6, or 99.7, respectively, 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 Monthly Operating Report of the Company for the month ending August
31, 1998.
99.2 Monthly Operating Report of the Company for the month ending September
30, 1998.
99.3 Monthly Operating Report of the Company for the month ending October
31, 1998.
99.4 Monthly Operating Report of the Company for the month ending November
30, 1998.
99.5 Amended Monthly Operating Report of the Company for the month ending
November 30, 1998.
99.6 Monthly Operating Report of the Company for the month ending December
31, 1998.
99.7 Monthly Operating Report of the Company for the month ending January
31, 1999.
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: April 1, 1999 By: /s/ Albert B. Gordon, Jr.
-------------------------
Albert B. Gordon, Jr.
Chief Executive Officer
Case No.: 97-02395PJW Thru 97-02401PJW Accrual Basis-1
OFFICE OF THE UNITED STATES TRUSTEE - REGION 3
MONTHLY OPERATING REPORT
for the month ending August 31, 1998
Document Previously Explanation
Required Attachments: Attached Submitted Attached
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
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 November 30, 1998
- ----------------------------------- ----------------------------------
PRINTED NAME OF RESPONSIBLE PARTY DATE
PREPARER:
/s/ Tom Matta Accounting Manager
- ----------------------------------- ----------------------------------
SIGNATURE OF PREPARER TITLE
Tom Matta November 30, 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
Assets Month Month
7/31/98 8/31/98
1 Cash $1,056,766 $770,231
2 Accounts Receivable (Net) 941,460 1,018,922
3 Inventory 34,190 34,190
4 Notes Receivable - -
5 Prepaid Expenses 15,900 15,166
6 Other (Attach List) - -
7 Total Current Assets 2,048,316 1,838,509
8 Property, Plant & Equipment 10,454,992 10,454,993
9 Less: Accumulated Depreciation/Depletion 5,811,127 5,811,127
10 Net Property, Plant & Equipment 4,643,865 4,643,866
11 Due From Affiliates & Insiders - -
12 Intangibles (Attach List) - -
12a Debt Issuance Cost - -
13 Other (Attach List) 2,024,310 2,024,310
14 Total Assets $8,716,491 $8,506,685
Postpetition Liabilities
15 Accounts Payable 5,206,974 5,310,570
15a Accrued Telecommunications Costs 1,224,449 977,547
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 6,431,423 6,288,117
Prepetition Liabilities
23. Secured Debt 4,267,093 4,267,093
24. Priority Debt (Attach List) 91,675 91,675
24a Redeemable Preferred Stock 1,620,000 1,620,000
25 Unsecured Debt 47,444,030 47,444,081
26 Other (Attach List) - -
27 Total Prepetition Liabilities 53,422,798 53,422,849
28 Total Liabilities 59,854,221 59,710,966
Equity
29 Owner's Prepetition Equity (12,258,875) (12,258,875)
30 Postpetition Cumulative
Profit or (Loss) (38,878,855) (38,945,406)
31. Total Equity (Deficit) (51,137,730) (51,204,281)
32 Total Liabilities & Owner's Equity $ 8,716,491 $8,506,685
<PAGE>
In Re: SA Telecommunications, Inc. Accrual Basis-2
Case Nos. 97-2395 (PJW) THROUGH 97-2401 (PJW)
Month Month
7/31/98 8/31/98
6 Other Current Assets
A/R-Jack Matz 0 0
A/R Prarie Systems, Inc. 0 0
A/R Line Costs 0 0
Long Distance Network N/R 0 0
-------------------------------------
0 0
=====================================
12 Intangibles
Goodwill (net of amortization) 0 0
=====================================
13 Other Non-Current Assets
Prepaid Employee Settlement (net) 0 0
Security Deposits & Miscellaneous 2,024,310 2,024,310
-------------------------------------
2,024,310 2,024,310
=====================================
21 Other Post-Petition Liabilities
Accr Payroll/Payroll Taxes/Benefits 0 0
Accr Medical Ins 0 0
Accr Property Taxes 0 0
-------------------------------------
0 0
=====================================
24 Priority Debt
Accrued Payroll/Employee Benefits 20,513 20,513
Accrued Property Taxes 71,162 71,162
Accrued Sales Taxes 0 0
-------------------------------------
91,675 91,675
=====================================
<PAGE>
Case No. Nos.-2395 (PJW) THROUGH 97-2401 (PJW) Accrual Basis -3
SA Telecommunications, Inc.
Income Statement
Month Month
July, 1998 August, 1998
---------- ------------
Revenues
1 Gross Revenues 1,016,898 0
2 Less: Returns & Discounts 1,011
3 Net Revenue 1,015,887 0
Cost Of Goods Sold
4 Beginning Inventory
5 Add: Purchases
6 Less: Ending Inventory
7 Cost Of Goods Sold 862,300 5,446
8 Gross Profit 153,587 (5,446)
Operating Expenses
9 Officer/Insider Compensation 65,021 5,578
10 Direct Labor/Salaries 203,381 21,240
11 Payroll Taxes 19,329 1,721
12 Rent & Lease Expense 26,427 1,912
13 Insurance 6,642 67,539
14 Depreciation/Amortization - -
15 General & Administrative 20,783 20,700
16 Other (Attach List) - -
17 Total Operating Expenses 341,583 118,690
18 Operating Income (187,996) (124,136)
Other Income & Expenses
19 Other Income (Attach List) (450,519)
20 Other Expenses (Attach List)
21 Interest Expense (24,897)
22 Other (32,425)
23 Net Other Income & Expenses (475,416) (32,425)
Reorganization Expenses
24 Professional Fees
25 U.S. Trustee Fees (32,934)
26 Other (Attach List)
27 Total Reorganization Expenses
28 Income Tax
29 Net Profit (Loss) (696,346) (156,561)
<PAGE>
Case Nos. 97-2395 (PJW) THROUGH 97-2401 (PJW) Accrual Basis -4
<TABLE>
<CAPTION>
CASH RECEIPTS AND
DISBURSEMENTS
TOTAL SATEL TOTAL SATEL TOTAL SATEL TOTAL SATEL TOTAL SATEL TOTAL SATEL TOTAL SATEL TOTAL SATEL
A/P MAIN OPER. P/R GREYROCK MISC. CD & NEC PETTY CASH
<S> <C> <C> <C> <C> <C> <C> <C> <C>
1. BEG. BAL (80,061.17) 409,224.23 6,269.39 - 121,048.31 596,223.09 4,062.00 1,056,765.85
2. CASH
SALES - - - - - - - -
3. RECEIPTS - 56,868.33 - - - 2,553.84 - 59,422.17
4. LOANS &
ADVANCES - - - - - - - -
5. SALE ASSETS - - - - - - - -
6. (OTHER)
PAYDOWNS
ON REVOLVER 32,445.71 11,265.87 75,102.16 - (5,964.82) (3,207.46) (4,062.00) 105,579.46
----------- ------------ ----------- --------- ----------- ----------- ---------- -------------
7. TOTAL
RECEIPTS 32,445.71 68,134.20 75,102.16 - (5,964.82) (653.62) (4,062.00) 165,001.63
8. TOTAL
CASH AVAIL. (47,615.46) 477,358.43 81,371.55 - 115,083.49 595,569.47 - 1,221,767.48
----------- ------------ ----------- --------- ----------- ----------- ---------- -------------
*DISBURSE-
MENTS - (347,053.51) (85,821.30) - (18,662.33) - - (451,537.14)
EOM
BALANCE (47,615.46) 130,304.92 (4,449.75) - 96,421.16 595,569.47 - 770,230.34
----------- ------------ ----------- --------- ----------- ----------- ---------- -------------
* See attached detail of disbursements by check number, date, payee and amount.
</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 $ 1,018,922
31 - 60 days old -
61 - 90 days old -
91 + days old -
Total Accounts Receivable $ 1,018,922
Amount Considered Uncollectable -
Account Receivable $ 1,018,922
<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 $ 5,310,650 $ - $ - $ - $ 5,310,650
</TABLE>
Status Of Postpetition Taxes
<TABLE>
<CAPTION>
Beginning Amount Ending
Tax Withheld Amount Tax Delinquent
Liability* Or Accrued Paid Liability Taxes
<S> <C> <C> <C> <C> <C>
Federal
- -------
Withholding** 64,659 3,427 48,687 19,398
FICA-Employee** 20,859 1,721 14,143 8,436
FICA-Employer** 20,859 1,721 14,143 8,436
Unemployment 1,006 - - 1,006
Income
Other (Attach List)
Total Federal Taxes 107,382 6,868 76,974 37,276 -
State And Local
- ---------------
Withholding 2,722 - 2,722 -
Sales 509,750* 12,607 58,431 463,926
Excise
Unemployment 6,714 - - 6,714
Real Property
Personal Property
Other (Attach List)
Total State & Local 519,186 12,607 61,153 470,640 -
Total Taxes 626,568 19,475 138,127 507,917 -
</TABLE>
* 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>
Case Nos. 97-972395 (PJW) THROUGH 02401 (PJW)
SA TELECOMMUNICATIONS, INC. ACCRUAL BASIS - 6
<TABLE>
<CAPTION>
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 Statement - 117,916.29 - 574,694.92 -
2 + Deposits not credited - - -
3 - Outstanding Checks (49,680.26) - (1,050.00) - -
4 +/- Other Reconciling items 2,064.80 (35.50) (3,865.21) - -
-------------- ---------------- -------------- ---------------- ---------------
5 Month End Balance per books (47,615.46) 117,880.79 (4,915.21) 574,694.92 -
============== ================ ============== ================ ===============
</TABLE>
<TABLE>
<CAPTION>
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 Statement - 81,817.19 - 8,841.95
2 + Deposits not credited -
3 - Outstanding Checks - (2,681.37) - (14.23)
4 +/- Other Reconciling items - 4,235.80 - 4,221.82
-------------- ---------------- -------------- ----------------
5 Month End Balance per books - 83,371.62 - 13,049.54
============== ================ ============== ================
</TABLE>
<PAGE>
Case Nos. 97-2395 (PJW) THROUGH 972401 (PJW)
SA TELECOMMUNICATIONS, INC. ACCRUAL BASIS - 6
<TABLE>
<CAPTION>
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> <C>
1 Balance per Bank Statement 17,735.98 20,874.55 - - -
2 + Deposits not credited
3 - Outstanding Checks (13,229.29)
4 +/- Other Reconciling items 7,917.44 - -
-------------- ----------------- ------------- ---------------- ---------------
5 Month End Balance per books 12,424.13 20,874.55 - - -
============== ================= ============= ================ ===============
</TABLE>
<TABLE>
<CAPTION>
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 Statement - - - -
2 + Deposits not credited
3 - Outstanding Checks - -
4 +/- Other Reconciling items 465.46 - -
---------------- --------------- ----------------- ---------------
5 Month End Balance per books 465.46 - - -
================ =============== ================= ===============
</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 Resigned
2 Dennis Lee Gundy VP-Operations Payroll Resigned
3 Jeffery M. Petrie VP-Telemarketing Payroll Resigned
4 Windle R. Ewing VP-Tariffs and Reg. Affair Payroll/Bonus 5,577.68
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 $ 5,577.68
</TABLE>
Professionals
<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>
<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 None None -
2
3
4
5
Total $ - $ -
</TABLE>
<PAGE>
ACCRUAL EASIS-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.
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
<TABLE>
<CAPTION>
Full Time Part Time
Total Total
<S> <C> <C>
1. Total number of employees at beginning of period 5 -
2. Total number of employees hired during the period - -
3. Number of employees terminated or resigned during the period - -
4. Total number of employees on payroll at end of period 5 -
</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:
Case No.: 97-02395PJW Thru 97-02401PJW Accrual Basis -1
OFFICE OF THE UNITED STATES TRUSTEE - REGION 3
MONTHLY OPERATING REPORT
for the month ending September, 1998
Document Previously Explanation
Required Attachments: Attached Submitted Attached
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
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:
RESPONSIBLE PARTY:
/s/ Windle R. Ewing Vice President
- ----------------------------------- ----------------------------------
SIGNATURE OF RESPONSIBLE PARTY TITLE
Windle R. Ewing January 26, 1999
- ----------------------------------- ----------------------------------
PRINTED NAME OF RESPONSIBLE PARTY DATE
PREPARER:
/s/ Tom Matta Accounting Manager
- ----------------------------------- ----------------------------------
SIGNATURE OF PREPARER TITLE
Tom Matta January 26, 1999
- ----------------------------------- ----------------------------------
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 Month
7/31/98 8/31/98 9/30/98
<S> <C> <C> <C>
1 Cash $1,056,766 $770,231 $772,602
2 Accounts Receivable (Net) 941,460 1,018,922 1,018,922
3 Inventory 34,190 34,190 34,190
4 Notes Receivable - - -
5 Prepaid Expenses 15,900 15,166 15,166
6 Other (Attach List) - - -
7 Total Current Assets 2,048,316 1,838,509 1,840,880
8 Property, Plant & Equipment 10,454,992 10,454,993 10,454,993
9 Less: Accumulated Depreciation/Depletion 5,811,127 5,811,127 5,811,127
10 Net Property, Plant & Equipment 4,643,865 4,643,866 4,643,866
11 Due From Affiliates & Insiders - - -
12 Intangibles (Attach List) - - -
12a Debt Issuance Cost - - -
13 Other (Attach List) 2,024,310 2,024,310 2,024,310
14 Total Assets $8,716,491 $8,506,685 $8,509,056
Postpetition Liabilities
15 Accounts Payable 5,206,974 5,310,570 5,381,577
15a Accrued Telecommunications Costs 1,224,449 977,547 967,430
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 6,431,423 6,288,117 6,349,007
Prepetition Liabilities
23. Secured Debt 4,267,093 4,267,093 4,267,093
24. Priority Debt (Attach List) 91,675 91,675 91,675
24a Redeemable Preferred Stock 1,620,000 1,620,000 1,620,000
25 Unsecured Debt 47,444,030 47,444,081 47,444,515
26 Other (Attach List) - - -
27 Total Prepetition Liabilities 53,422,798 53,422,849 53,423,283
28 Total Liabilities 59,854,221 59,710,966 59,772,290
Equity
29 Owner's Prepetition Equity (12,258,875) (12,258,875) (12,258,875)
30 Postpetition Cumulative
Profit or (Loss) (38,878,855) (38,945,406) (39,004,359)
31. Total Equity (Deficit) (51,137,730) (51,204,281) (51,263,234)
32 Total Liabilities & Owner's Equity $ 8,716,491 $8,506,685 $8,509,056
</TABLE>
<PAGE>
In Re: SA Telecommunications, Inc. Accrual Basis-2
Case Nos. 97-2395 (PJW) THROUGH 97-2401 (PJW)
<TABLE>
<CAPTION>
Month Month Month
7/31/98 8/31/98 9/30/98
<S> <C> <C> <C>
6 Other Current Assets
A/R-Jack Matz 0 0 0
A/R Prarie Systems, Inc. 0 0 0
A/R Line Costs 0 0 0
Long Distance Network N/R 0 0 0
-----------------------------------------------------------
0 0 0
===========================================================
12 Intangibles
Goodwill (net of amortization) 0 0 0
===========================================================
13 Other Non-Current Assets
Prepaid Employee Settlement (net) 0 0 0
Security Deposits & Miscellaneous 2,024,310 2,024,310 2,024,310
-----------------------------------------------------------
2,024,310 2,024,310 2,024,310
===========================================================
21 Other Post-Petition Liabilities
Accr Payroll/Payroll Taxes/Benefits 0 0 0
Accr Medical Ins 0 0 0
Accr Property Taxes 0 0 0
-----------------------------------------------------------
0 0 0
===========================================================
24 Priority Debt
Accrued Payroll/Employee Benefits 20,513 20,513 20,513
Accrued Property Taxes 71,162 71,162 71,162
Accrued Sales Taxes 0 0 0
-----------------------------------------------------------
91,675 91,675 91,675
===========================================================
</TABLE>
<PAGE>
Case No. Nos.-2395 (PJW) THROUGH 97-2401 (PJW) Accrual Basis -3
SA Telecommunications, Inc.
Income Statement
<TABLE>
<CAPTION>
Month Month Month
July, 1998 August, 1998 September, 1998
---------- ------------ ---------------
<S> <C> <C> <C>
Revenues
1 Gross Revenues 1,016,898 0 0
2 Less: Returns & Discounts 1,011
3 Net Revenue 1,015,887 0 0
Cost Of Goods Sold
4 Beginning Inventory
5 Add: Purchases
6 Less: Ending Inventory
7 Cost Of Goods Sold 862,300 5,446 5,749
8 Gross Profit 153,587 (5,446) (5,749)
Operating Expenses
9 Officer/Insider Compensation 65,021 5,578 5,578
10 Direct Labor/Salaries 203,381 21,240 19,676
11 Payroll Taxes 19,329 1,721 1,284
12 Rent & Lease Expense 26,427 1,912 12,941
13 Insurance 6,642 67,539 (7,185)
14 Depreciation/Amortization - - -
15 General & Administrative 20,783 20,700 22,689
16 Other (Attach List) - - -
17 Total Operating Expenses 341,583 118,690 54,983
18 Operating Income (187,996) (124,136) (60,732)
Other Income & Expenses
19 Other Income (Attach List) (450,519)
20 Other Expenses (Attach List)
21 Interest Expense (24,897)
22 Other (32,425) 1,779
23 Net Other Income & Expenses (475,416) (32,425) 1,779
Reorganization Expenses
24 Professional Fees
25 U.S. Trustee Fees (32,934)
26 Other (Attach List)
27 Total Reorganization Expenses
28 Income Tax
29 Net Profit (Loss) (696,346) (156,561) (58,953)
</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 (47,615.46) 130,304.92 (4,449.75) -
2. CASH - - - -
SALES
3. RECEIPTS - 79,402.93 - -
4. LOANS & - - - -
ADVANCES
5. SALE - - - -
ASSETS
6. (OTHER)
PAYDOWNS
ON
REVOLVER 42,997.38 - 40,545.10 -
------------ ------------ ------------ ------------
7. TOTAL
RECEIPTS 42,997.38 79,402.93 40,545.10 -
8. TOTAL
CASH AVAIL. (4,618.08) 209,707.85 36,095.35 -
------------ ------------ ------------ ------------
*DISBURSE-
MENTS - (128,006.14) (28,827.71) -
EOM
BALANCE (4,618.08) 81,701.71 7,267.64
------------ ------------ ------------ ------------
</TABLE>
<TABLE>
<CAPTION>
TOTAL SATEL TOTAL SATEL TOTAL SATEL TOTAL SATEL
MISC. CD & NEC PETTY CASH
<S> <C> <C> <C> <C>
1. BEG. BAL 96,421.16 595,569.47 - 770,230.34
2. CASH - - - -
SALES
3. RECEIPTS - 2,673.03 - 82,075.96
4. LOANS & - - - -
ADVANCES
5. SALE - - - -
ASSETS
6. (OTHER)
PAYDOWNS
ON
REVOLVER (5,926.13) (355.62) - 77,260.73
------------- ------------ ------------ ------------
7. TOTAL
RECEIPTS (5,926.13) 2,317.41 - 159,336.69
8. TOTAL
CASH AVAIL. 90,495.03 597,886.88 929,567.03
------------- ------------ ------------ ------------
*DISBURSE-
MENTS (130.29) - - (156,964.14)
EOM
BALANCE 90,364.74 597,886.88 772,602.89
------------- ------------ ------------ ------------
</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 $ 1,018,922
31 - 60 days old -
61 - 90 days old -
91 + days old -
Total Accounts Receivable $ 1,018,922
Amount Considered Uncollectable -
Account Receivable $ 1,018,922
<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 $ 5,381,577 $ - $ - $ - $ 5,381,577
</TABLE>
Status Of Postpetition Taxes
<TABLE>
<CAPTION>
Beginning Amount Ending
Tax Withheld Amount Tax Delinquent
Liability* Or Accrued Paid Liability Taxes
<S> <C> <C> <C> <C> <C>
Federal
- -------
Withholding** 19,398 4,493 6,254 17,637
FICA-Employee** 8,436 1,148 2,949 6,634
FICA-Employer** 8,436 1,148 2,949 6,634
Unemployment 1,006 - - 1,006
Income
Other (Attach List)
Total Federal Taxes 37,276 6,788 12,153 31,911 -
State And Local
- ---------------
Withholding - - - -
Sales 451,319* - 1,166 450,153
Excise
Unemployment 6,714 - 6 6,708
Real Property
Personal Property
Other (Attach List)
Total State & Local 458,033 - 1,172 456,861 -
Total Taxes 495,309 6,788 13,325 488,772 -
</TABLE>
* 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>
Case Nos. 97-972395 (PJW) THROUGH 02401 (PJW)
SA TELECOMMUNICATIONS, INC. ACCRUAL BASIS - 6
<TABLE>
<CAPTION>
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 Statement - 78,025.60 - 576,473.49 -
2 + Deposits not credited - - -
3 - Outstanding Checks (6,821.09) - 2,243.30 - -
4 +/- Other Reconciling items 2,203.01 (35.50) 5,024.34 - -
-------------- ---------------- -------------- ---------------- ---------------
5 Month End Balance per books (4,618.08) 77,990.10 7,267.64 576,473.49 -
============== ================ ============== ================ ===============
</TABLE>
<TABLE>
<CAPTION>
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 Statement - 87,701.56 - -
2 + Deposits not credited - -
3 - Outstanding Checks - (1,573.02) - -
4 +/- Other Reconciling items - 4,236.20 - -
-------------- ---------------- -------------- ----------------
5 Month End Balance per books - 90,364.74 - -
============== ================ ============== ================
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
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> <C>
1 Balance per Bank Statement 7,624.89 21,413.39 - - -
2 + Deposits not credited
3 - Outstanding Checks (9,306.70)
4 +/- Other Reconciling items 5,393.42 - -
-------------- ----------------- ------------- ---------------- ---------------
5 Month End Balance per books 3,711.61 21,413.39 - - -
============== ================= ============= ================ ===============
</TABLE>
<TABLE>
<CAPTION>
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 Statement - - - -
2 + Deposits not credited
3 - Outstanding Checks - - -
4 +/- Other Reconciling items - - -
---------------- --------------- ----------------- ---------------
5 Month End Balance per 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 Resigned
2 Dennis Lee Gundy VP-Operations Bonus Resigned
3 Jeffery M. Petrie VP-Telemarketing Bonus Resigned
4 Windle R. Ewing VP-Tariffs and Reg. Affair Payroll/Bonus 5,577.68
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 Bonus Resigned
Total Payments to Insiders $ 5,577.68
</TABLE>
Professionals
<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>
<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 None None -
2
3
4
5
Total $ - $ -
</TABLE>
<PAGE>
ACCRUAL EASIS-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.
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
<TABLE>
<CAPTION>
Full Time Part Time
Total Total
<S> <C> <C>
1. Total number of employees at beginning of period 5 -
2. Total number of employees hired during the period - -
3. Number of employees terminated or resigned during the period 2 -
4. Total number of employees on payroll at end of period 3 -
</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:
Case No.: 97-02395PJW Thru 97-02401PJW Accrual Basis -1
OFFICE OF THE UNITED STATES TRUSTEE - REGION 3
MONTHLY OPERATING REPORT
for the month ending October, 1998
Document Previously Explanation
Required Attachments: Attached Submitted Attached
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
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:
RESPONSIBLE PARTY:
/s/ Windle R. Ewing Vice President
- ----------------------------------- ----------------------------------
SIGNATURE OF RESPONSIBLE PARTY TITLE
Windle R. Ewing January 26, 1999
- ----------------------------------- ----------------------------------
PRINTED NAME OF RESPONSIBLE PARTY DATE
PREPARER:
/s/ Tom Matta Accounting Manager
- ----------------------------------- ----------------------------------
SIGNATURE OF PREPARER TITLE
Tom Matta January 26, 1999
- ----------------------------------- ----------------------------------
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
Assets Month
10/31/98
1 Cash $766,245
2 Accounts Receivable (Net) 965,044
3 Inventory 34,190
4 Notes Receivable -
5 Prepaid Expenses 15,166
6 Other (Attach List) -
7 Total Current Assets 1,780,645
8 Property, Plant & Equipment 10,454,993
9 Less: Accumulated
Depreciation/Depletion 5,811,127
10 Net Property, Plant & Equipment 4,643,866
11 Due From Affiliates & Insiders -
12 Intangibles (Attach List) -
12a Debt Issuance Cost -
13 Other (Attach List) 2,024,310
14 Total Assets $8,448,821
Postpetition Liabilities
15 Accounts Payable 5,385,570
15a Accrued Telecommunications Costs 967,430
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 6,353,000
Prepetition
Liabilities
23. Secured Debt 4,267,093
24. Priority Debt (Attach List) 91,675
24a Redeemable Preferred Stock 1,620,000
25 Unsecured Debt 47,444,515
26 Other (Attach List) -
27 Total Prepetition Liabilities 53,423,283
28 Total Liabilities 59,776,283
Equity
29 Owner's Prepetition Equity (12,258,875)
30 Postpetition Cumulative
Profit or (Loss) (39,068,587)
31. Total Equity (Deficit) (51,327,462)
32 Total Liabilities & Owner's Equity $8,448,821
<PAGE>
In Re: SA Telecommunications, Inc. Accrual Basis-2
Case Nos. 97-2395 (PJW) THROUGH 97-2401 (PJW)
Month
10/31/98
6 Other Current Assets
A/R-Jack Matz 0
A/R Prarie Systems, Inc. 0
A/R Line Costs 0
Long Distance Network N/R 0
-------------
0
12 Intangibles
Goodwill (net of amortization) 0
13 Other Non-Current Assets
Prepaid Employee Settlement (net) 0
Security Deposits & Miscellaneous 2,024,310
2,024,310
21 Other Post-Petition Liabilities
Accr Payroll/Payroll Taxes/Benefits 0
Accr Medical Ins 0
Accr Property Taxes 0
-------------
0
24 Priority Debt
Accrued Payroll/Employee Benefits 20,513
Accrued Property Taxes 71,162
Accrued Sales Taxes 0
-------------
91,675
-------------
<PAGE>
Case No. Nos.-2395 (PJW) THROUGH 97-2401 (PJW) Accrual Basis -3
SA Telecommunications, Inc.
Income Statement
Month
October, 1998
Revenues
1 Gross Revenues 0
2 Less: Returns & Discounts
3 Net Revenue 0
Cost Of Goods Sold
4 Beginning Inventory
5 Add: Purchases
6 Less: Ending Inventory
7 Cost Of Goods Sold
8 Gross Profit 0
Operating Expenses
9 Officer/Insider Compensation 5,578
10 Direct Labor/Salaries 28,590
11 Payroll Taxes 1,685
12 Rent & Lease Expense 10,314
13 Insurance (4,318)
14 Depreciation/Amortization -
15 General & Administrative 24,418
16 Other (Attach List) - - -
17 Total Operating Expenses 66,267
18 Operating Income (66,267)
Other Income & Expenses
19 Other Income (Attach List)
20 Other Expenses (Attach List)
21 Interest Expense
22 Other 2,039
23 Net Other Income & Expenses 2,039
Reorganization Expenses
24 Professional Fees
25 U.S. Trustee Fees
26 Other (Attach List)
27 Total Reorganization Expenses
28 Income Tax
29 Net Profit (Loss) (64,228)
<PAGE>
Case Nos. 97-2395 (PJW) THROUGH 97-2401 (PJW) Accrual Basis -4
<TABLE>
<CAPTION>
CASH RECEIPTS AND
DISBURSEMENTS
TOTAL SATEL TOTAL SATEL TOTAL SATEL TOTAL SATEL TOTAL SATEL TOTAL SATEL TOTAL SATEL TOTAL SATEL
A/P MAIN OPER. P/R GREYROCK MISC. CD & NEC PETTY CASH
<S> <C> <C> <C> <C> <C> <C> <C> <C>
1. BEG. BAL (4,618.08) 81.701.71 (7,267.64) - 90,364.74 597,886.88 - 772,602.89
2. CASH
SALES - - - - - - - -
3. RECEIPTS - 67,739.76 - - - 86.94 - 67,826.70
4. LOANS &
ADVANCES - - - - - - - -
5. SALE ASSETS - - - - - - - -
6. (OTHER)
PAYDOWNS
ON REVOLVER (4,072.26) - 24,256.69 - - - - 20,184.43
----------- ------------ ----------- --------- ----------- ----------- ---------- -------------
7. TOTAL
RECEIPTS (4,072.26) 67,739.76 24,256.69 - - 86.94 - 88,011.13
8. TOTAL
CASH AVAIL. (8,690.34) 149,441.47 31,524.33 - 90,364.74 597,973.82 - 860.614.02
----------- ------------ ----------- --------- ----------- ----------- ---------- -------------
*DISBURSE-
MENTS - (61,244.88) (32,564.32) - (560.00) - - (94,369.20)
EOM
BALANCE (8,690.34) 88,196.59 (1,039.99) - 89,804.74 597,973.82 - 766,244.82
----------- ------------ ----------- --------- ----------- ----------- ---------- -------------
</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 $ 965,044
31 - 60 days old -
61 - 90 days old -
91 + days old -
Total Accounts Receivable $ 965,044
Amount Considered Uncollectable -
Account Receivable $ 965,044
<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 $ 5,385,570 $ - $ - $ - $ 5,385,570
</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> <C>
Federal
- -------
Withholding** 17,637 3,579 6,951 14,265
FICA-Employee** 6,634 1,685 1,685 6,634
FICA-Employer** 6,634 1,685 1,685 6,634
Unemployment 1,006 - - 1,006
Income
Other (Attach List)
Total Federal Taxes 31,911 6,949 10,321 28,539 -
State And Local
- ---------------
Withholding - - - -
Sales 451,319* - - 451,319
Excise
Unemployment 6,714 - - 6,714
Real Property
Personal Property
Other (Attach List)
Total State & Local 458,033 - - 458,033 -
Total Taxes 489,944 6,949 10,321 486,572 -
</TABLE>
* 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>
Case Nos. 97-972395 (PJW) THROUGH 02401 (PJW) ACCRUAL BASIS - 6
SA TELECOMMUNICATIONS, INC.
<TABLE>
<CAPTION>
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 Statement - 84,670.78 - 576,473.49 -
2 + Deposits not credited - - -
3 - Outstanding Checks (10,976.74) - (1,039.99) - -
4 +/- Other Reconciling items 2,286.40 (35.50) - - -
-------------- ---------------- -------------- ---------------- ---------------
5 Month End Balance per books (8,690.34) 84,635.28 (1,039.99) 576,473.49 -
============== ================ ============== ================ ===============
</TABLE>
<TABLE>
<CAPTION>
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 Statement - 87,659.56 - -
2 + Deposits not credited - -
3 - Outstanding Checks - (2,091.02) - -
4 +/- Other Reconciling items - 4,236.20 - -
-------------- ---------------- -------------- ----------------
5 Month End Balance per books - 89,804.74 - -
============== ================ ============== ================
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
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> <C>
1 Balance per Bank Statement 7,361.64 21,500.33 - - -
2 + Deposits not credited
3 - Outstanding Checks (9,193.75)
4 +/- Other Reconciling items 5,393.42 - -
-------------- ----------------- ------------- ---------------- ---------------
5 Month End Balance per books 3,561.31 21,500.33 - - -
============== ================= ============= ================ ===============
</TABLE>
<TABLE>
<CAPTION>
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 Statement - - - -
2 + Deposits not credited
3 - Outstanding Checks - - -
4 +/- Other Reconciling items - - -
---------------- --------------- ----------------- ---------------
5 Month End Balance per 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 Resigned
2 Dennis Lee Gundy VP-Operations Bonus Resigned
3 Jeffery M. Petrie VP-Telemarketing Bonus Resigned
4 Windle R. Ewing VP-Tariffs and Reg. Affair Payroll/Bonus 5,577.68
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 Bonus Resigned
Total Payments to Insiders $ 5,577.68
</TABLE>
Professionals
<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>
<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 None None -
2
3
4
5
Total $ - $ -
</TABLE>
<PAGE>
ACCRUAL EASIS-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.
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
<TABLE>
<CAPTION>
Full Time Part Time
Total Total
<S> <C> <C>
1. Total number of employees at beginning of period 3 -
2. Total number of employees hired during the period - -
3. Number of employees terminated or resigned during the period 1 -
4. Total number of employees on payroll at end of period 2 -
</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:
Accrual Basis-1
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, 1998
Document Previously Explanation
Required Attachments: Attached Submitted Attached
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
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:
RESPONSIBLE PARTY:
/s/ Windle R. Ewing Vice President
- ----------------------------------- ----------------------------------
SIGNATURE OF RESPONSIBLE PARTY TITLE
Windle R. Ewing January 26, 1999
- ----------------------------------- ----------------------------------
PRINTED NAME OF RESPONSIBLE PARTY DATE
PREPARER:
/s/ Tom Matta Accounting Manager
- ----------------------------------- ----------------------------------
SIGNATURE OF PREPARER TITLE
Tom Matta January 26, 1999
- ----------------------------------- ----------------------------------
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
Assets Month Month
10/31/98 11/30/98
1 Cash $766,245 $725,248
2 Accounts Receivable (Net) 965,044 965,044
3 Inventory 34,190 34,190
4 Notes Receivable - -
5 Prepaid Expenses 15,166 15,166
6 Other (Attach List) - -
7 Total Current Assets 1,780,645 1,739,648
8 Property, Plant & Equipment 10,454,993 10,454,993
9 Less: Accumulated
Depreciation/Depletion 5,811,127 5,811,127
10 Net Property, Plant & Equipment 4,643,866 4,643,866
11 Due From Affiliates & Insiders - -
12 Intangibles (Attach List) - -
12a Debt Issuance Cost - -
13 Other (Attach List) 2,024,310 2,024,310
14 Total Assets $8,448,821 $8,407,824
Postpetition Liabilities
15 Accounts Payable 5,385,570 5,408,801
15a Accrued Telecommunications Costs 967,430 967,430
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 6,353,000 6,376,231
Prepetition
Liabilities
23. Secured Debt 4,267,093 4,267,093
24. Priority Debt (Attach List) 91,675 91,675
24a Redeemable Preferred Stock 1,620,000 1,620,000
25 Unsecured Debt 47,444,515 47,444,515
26 Other (Attach List) - -
27 Total Prepetition Liabilities 53,423,283 53,423,283
28 Total Liabilities 59,776,283 59,799,514
Equity
29 Owner's Prepetition Equity (12,258,875) (12,258,875)
30 Postpetition Cumulative
Profit or (Loss) (39,068,587) (39,132,815)
31. Total Equity (Deficit) (51,327,462) (51,391,690)
32 Total Liabilities & Owner's Equity $8,448,821 $8,407,824
<PAGE>
In Re: SA Telecommunications, Inc. Accrual Basis-2
Case Nos. 97-2395 (PJW) THROUGH 97-2401 (PJW)
<TABLE>
<CAPTION>
Month Month
10/31/98 11/30/98
<S> <C> <C>
6 Other Current Assets
A/R-Jack Matz 0 0
A/R Prarie Systems, Inc. 0 0
A/R Line Costs 0 0
Long Distance Network N/R 0 0
-------------------------------------
0 0
=====================================
12 Intangibles
Goodwill (net of amortization) 0 0
=====================================
13 Other Non-Current Assets
Prepaid Employee Settlement (net) 0 0
Security Deposits & Miscellaneous 2,024,310 2,024,310
-------------------------------------
2,024,310 2,024,310
=====================================
21 Other Post-Petition Liabilities
Accr Payroll/Payroll Taxes/Benefits 0 0
Accr Medical Ins 0 0
Accr Property Taxes 0 0
-------------------------------------
0 0
=====================================
24 Priority Debt
Accrued Payroll/Employee Benefits 20,513 20,513
Accrued Property Taxes 71,162 71,162
Accrued Sales Taxes 0 0
-------------------------------------
91,675 91,675
=====================================
</TABLE>
<PAGE>
Case No. Nos.-2395 (PJW) THROUGH 97-2401 (PJW) Accrual Basis -3
SA Telecommunications, Inc.
Income Statement
Month Month
October, 1998 November, 1998
------------- --------------
Revenues
1 Gross Revenues 0 0
2 Less: Returns & Discounts
3 Net Revenue 0 0
Cost Of Goods Sold
4 Beginning Inventory
5 Add: Purchases
6 Less: Ending Inventory
7 Cost Of Goods Sold
8 Gross Profit 0 0
Operating Expenses
9 Officer/Insider Compensation 5,578 5,578
10 Direct Labor/Salaries 28,590 7,700
11 Payroll Taxes 1,685 42
12 Rent & Lease Expense 10,314 607
13 Insurance (4,318)
14 Depreciation/Amortization - -
15 General & Administrative 24,418 14,592
16 Other (Attach List) - - -
17 Total Operating Expenses 66,267 22,941
18 Operating Income (66,267) (22,941)
Other Income & Expenses
19 Other Income (Attach List)
20 Other Expenses (Attach List)
21 Interest Expense
22 Other 2,039 2,039
23 Net Other Income & Expenses 2,039 2,039
Reorganization Expenses
24 Professional Fees (6,983)
25 U.S. Trustee Fees (10,000)
26 Other (Attach List)
27 Total Reorganization Expenses
28 Income Tax
29 Net Profit (Loss) (64,228) (37,885)
<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 TOTAL SATEL TOTAL SATEL TOTAL SATEL TOTAL SATEL
A/P MAIN OPER. P/R GREYROCK MISC. CD & NEC PETTY CASH
<S> <C> <C> <C> <C> <C> <C> <C> <C>
1. BEG. BAL (8,690.34) 88,196.59 (1,039.99) - 89,804.74 597,973.82 - 766,244.82
2. CASH
SALES - - - - - - - -
3. RECEIPTS - - - - - 4,167.51 - 4,167.51
4. LOANS &
ADVANCES - - - - - - - -
5. SALE ASSETS - - - - - - - -
6. (OTHER)
PAYDOWNS
ON REVOLVER 838.65 - 1,039.99 - - - - 1,878.64
----------- ------------ ----------- --------- ----------- ----------- ---------- -------------
7. TOTAL
RECEIPTS 838.65 - 1,039.99 - - 4,167.51 - 6,046.15
8. TOTAL
CASH AVAIL. (7,851.69) 88,196.59 - - 89,804.74 602,141.33 - 772,290.97
----------- ------------ ----------- --------- ----------- ----------- ---------- -------------
*DISBURSE-
MENTS - (47,043.47) - - - - - (47,043.47)
EOM
BALANCE (7,851.69) 41,153.12 - - 89,804.74 602,141.33 - 725.247.50
----------- ------------ ----------- --------- ----------- ----------- ---------- -------------
</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 $ 965,044
31 - 60 days old -
61 - 90 days old -
91 + days old -
Total Accounts Receivable $ 965,044
Amount Considered Uncollectable -
Account Receivable $ 965,044
<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 $ 5,408,801 $ - $ - $ - $ 5,408,801
</TABLE>
Status Of Postpetition Taxes
<TABLE>
<CAPTION>
Beginning Amount Ending
Tax Withheld Amount Tax Delinquent
Liability* Or Accrued* Paid Liability Taxes
<S> <C> <C> <C> <C> <C>
Federal
- -------
Withholding** 17,637 3,579 6,951 14,265
FICA-Employee** 6,634 1,685 1,685 6,634
FICA-Employer** 6,634 1,685 1,685 6,634
Unemployment 1,006 - - 1,006
Income
Other (Attach List)
Total Federal Taxes 31,911 6,949 10,321 28,539 -
State And Local
- ---------------
Withholding - - - -
Sales 451,319* - - 451,319
Excise
Unemployment 6,714 - - 6,714
Real Property
Personal Property
Other (Attach List)
Total State & Local 458,033 - - 458,033 -
Total Taxes 489,944 6,949 10,321 486,572 -
</TABLE>
* 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>
Case Nos. 97-972395 (PJW) THROUGH 02401 (PJW)SA TELECOMMUNICATIONS, INC.
ACCRUAL BASIS - 6
<TABLE>
<CAPTION>
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 Statement - 37,764.49 - 580,550.79 -
2 + Deposits not credited - - -
3 - Outstanding Checks (10,138.09) - - - -
4 +/- Other Reconciling items 2,286.40 (35.50) - - -
-------------- ---------------- -------------- ---------------- ---------------
5 Month End Balance per books (7,851.69) 37,728.99 - 580,550.79 -
============== ================ ============== ================ ===============
</TABLE>
<TABLE>
<CAPTION>
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 Statement - 87,141.56 - -
2 + Deposits not credited - -
3 - Outstanding Checks - (1,573.02) - -
4 +/- Other Reconciling items - 4,236.20 - -
-------------- ---------------- -------------- ----------------
5 Month End Balance per books - 89,804.74 - -
============== ================ ============== ================
</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> <C>
1 Balance per Bank Statement 7,144.69 21,590.54 - - -
2 + Deposits not credited
3 - Outstanding Checks (9,113.98)
4 +/- Other Reconciling items 5,393.42 - -
-------------- ----------------- ------------- ---------------- ---------------
5 Month End Balance per books 3,424.13 21,590.54 - - -
============== ================= ============= ================ ===============
</TABLE>
<TABLE>
<CAPTION>
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 Statement - - - -
2 + Deposits not credited
3 - Outstanding Checks - - -
4 +/- Other Reconciling items - - -
---------------- --------------- ----------------- ---------------
5 Month End Balance per books - - - -
================ =============== ================= ===============
</TABLE>
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 Resigned
2 Dennis Lee Gundy VP-Operations Bonus Resigned
3 Jeffery M. Petrie VP-Telemarketing Bonus Resigned
4 Windle R. Ewing VP-Tariffs and Reg. Affair Payroll 5,577.68
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 Bonus Resigned
Total Payments to Insiders $ 5,577.68
</TABLE>
Professionals
<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>
<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 None None -
2
3
4
5
Total $ - $ -
</TABLE>
<PAGE>
ACCRUAL EASIS-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.
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
<TABLE>
<CAPTION>
Full Time Part Time
Total Total
<S> <C> <C>
1. Total number of employees at beginning of period 2 -
2. Total number of employees hired during the period - -
3. Number of employees terminated or resigned during the period - -
4. Total number of employees on payroll at end of period 2 -
</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:
Accrual Basis-1
Case No.: 97-02395PJW Thru 97-02401PJW
OFFICE OF THE UNITED STATES TRUSTEE - REGION 3
AMENDED MONTHLY OPERATING REPORT
for the month ending November, 1998
Document Previously Explanation
Required Attachments: Attached Submitted Attached
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
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 March 25, 1999
- ----------------------------------- ----------------------------------
PRINTED NAME OF RESPONSIBLE PARTY DATE
PREPARER:
/s/ Tom Matta Accounting Manager
- ----------------------------------- ----------------------------------
SIGNATURE OF PREPARER TITLE
Tom Matta March 25, 1999
- ----------------------------------- ----------------------------------
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
Assets Month Month
10/31/98 11/30/98
1 Cash $766,245 $725,248
2 Accounts Receivable (Net) 965,044 965,044
3 Inventory 34,190 34,190
4 Notes Receivable - -
5 Prepaid Expenses 15,166 15,166
6 Other (Attach List) - -
7 Total Current Assets 1,780,645 1,739,648
8 Property, Plant & Equipment 10,454,993 10,454,993
9 Less: Accumulated
Depreciation/Depletion 5,811,127 5,811,127
10 Net Property, Plant & Equipment 4,643,866 4,643,866
11 Due From Affiliates & Insiders - -
12 Intangibles (Attach List) - -
12a Debt Issuance Cost - -
13 Other (Attach List) 2,024,310 2,024,310
14 Total Assets $8,448,821 $8,407,824
Postpetition Liabilities
15 Accounts Payable 5,385,570 5,408,801
15a Accrued Telecommunications Costs 967,430 967,430
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 6,353,000 6,376,231
Prepetition
Liabilities
23. Secured Debt 4,267,093 4,267,093
24. Priority Debt (Attach List) 91,675 91,675
24a Redeemable Preferred Stock 1,620,000 1,620,000
25 Unsecured Debt 47,444,515 47,444,515
26 Other (Attach List) - -
27 Total Prepetition Liabilities 53,423,283 53,423,283
28 Total Liabilities 59,776,283 59,799,514
Equity
29 Owner's Prepetition Equity (12,258,875) (12,258,875)
30 Postpetition Cumulative
Profit or (Loss) (39,068,587) (39,132,815)
31. Total Equity (Deficit) (51,327,462) (51,391,690)
32 Total Liabilities & Owner's Equity $8,448,821 $8,407,824
<PAGE>
In Re: SA Telecommunications, Inc. Accrual Basis-2
Case Nos. 97-2395 (PJW) THROUGH 97-2401 (PJW)
<TABLE>
<CAPTION>
Month Month
10/31/98 11/30/98
<S> <C> <C>
6 Other Current Assets
A/R-Jack Matz 0 0
A/R Prarie Systems, Inc. 0 0
A/R Line Costs 0 0
Long Distance Network N/R 0 0
-------------------------------------
0 0
=====================================
12 Intangibles
Goodwill (net of amortization) 0 0
=====================================
13 Other Non-Current Assets
Prepaid Employee Settlement (net) 0 0
Security Deposits & Miscellaneous 2,024,310 2,024,310
-------------------------------------
2,024,310 2,024,310
=====================================
21 Other Post-Petition Liabilities
Accr Payroll/Payroll Taxes/Benefits 0 0
Accr Medical Ins 0 0
Accr Property Taxes 0 0
-------------------------------------
0 0
=====================================
24 Priority Debt
Accrued Payroll/Employee Benefits 20,513 20,513
Accrued Property Taxes 71,162 71,162
Accrued Sales Taxes 0 0
-------------------------------------
91,675 91,675
=====================================
</TABLE>
<PAGE>
Case No. Nos.-2395 (PJW) THROUGH 97-2401 (PJW) Accrual Basis -3
SA Telecommunications, Inc.
Income Statement
Month Month
October, 1998 November, 1998
------------- --------------
Revenues
1 Gross Revenues 0 0
2 Less: Returns & Discounts
3 Net Revenue 0 0
Cost Of Goods Sold
4 Beginning Inventory
5 Add: Purchases
6 Less: Ending Inventory
7 Cost Of Goods Sold
8 Gross Profit 0 0
Operating Expenses
9 Officer/Insider Compensation 5,578 5,578
10 Direct Labor/Salaries 28,590 2,122
11 Payroll Taxes 1,685 42
12 Rent & Lease Expense 10,314 607
13 Insurance (4,318)
14 Depreciation/Amortization - -
15 General & Administrative 24,418 14,592
16 Other (Attach List) - - -
17 Total Operating Expenses 66,267 22,941
18 Operating Income (66,267) (22,941)
Other Income & Expenses
19 Other Income (Attach List)
20 Other Expenses (Attach List)
21 Interest Expense
22 Other 2,039 2,039
23 Net Other Income & Expenses 2,039 2,039
Reorganization Expenses
24 Professional Fees (6,983)
25 U.S. Trustee Fees (10,000)
26 Other (Attach List)
27 Total Reorganization Expenses
28 Income Tax
29 Net Profit (Loss) (64,228) (37,885)
<PAGE>
Debtor: SA Telecommunications, Inc. and Subsidiaries Accrual Basis-5
Case No: 97-2395 through 97-2401
Accounts Receivable Aging
0 - 30 days old $ 965,044
31 - 60 days old -
61 - 90 days old -
91 + days old -
Total Accounts Receivable $ 965,044
Amount Considered Uncollectable -
Account Receivable $ 965,044
<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 $ 5,382,458 $ - $ - $ - $ 5,382,458
</TABLE>
Status Of Postpetition Taxes
<TABLE>
<CAPTION>
Beginning Amount Ending
Tax Withheld Amount Tax Delinquent
Liability* Or Accrued* Paid Liability Taxes
<S> <C> <C> <C> <C> <C>
Federal
- -------
Withholding** 17,637 3,579 6,951 14,265
FICA-Employee** 6,634 1,685 1,685 6,634
FICA-Employer** 6,634 1,685 1,685 6,634
Unemployment 1,006 - - 1,006
Income
Other (Attach List)
Total Federal Taxes 31,911 6,949 10,321 28,539 -
State And Local
- ---------------
Withholding - - - -
Sales 451,319* - - 451,319
Excise
Unemployment 6,714 - - 6,714
Real Property
Personal Property
Other (Attach List)
Total State & Local 458,033 - - 458,033 -
Total Taxes 489,944 6,949 10,321 486,572 -
</TABLE>
* 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
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 December, 1998
Document Previously Explanation
Required Attachments: Attached Submitted Attached
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
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 February 24, 1999
- ----------------------------------- ----------------------------------
PRINTED NAME OF RESPONSIBLE PARTY DATE
PREPARER:
/s/ Tom Matta Accounting Manager
- ----------------------------------- ----------------------------------
SIGNATURE OF PREPARER TITLE
Tom Matta February 24, 1999
- ----------------------------------- ----------------------------------
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
Assets
<TABLE>
<CAPTION>
Month Month Month
10/31/98 11/30/98 12/31/98
<S> <C> <C> <C>
1 Cash $766,245 $725,248 $700,402
2 Accounts Receivable (Net) 965,044 965,044 965,044
3 Inventory 34,190 34,190 34,190
4 Notes Receivable - - -
5 Prepaid Expenses 15,166 15,166 15,166
6 Other (Attach List) - - -
7 Total Current Assets 1,780,645 1,739,648 1,714,802
8 Property, Plant & Equipment 10,454,993 10,454,993 10,454,993
9 Less: Accumulated
Depreciation/Depletion 5,811,127 5,811,127 5,811,127
10 Net Property, Plant & Equipment 4,643,866 4,643,866 4,643,866
11 Due From Affiliates & Insiders - - -
12 Intangibles (Attach List) - - -
12a Debt Issuance Cost - - -
13 Other (Attach List) 2,024,310 2,024,310 2,024,310
14 Total Assets $8,448,821 $8,407,824 $8,382,978
Postpetition Liabilities
15 Accounts Payable 5,385,570 5,408,801 5,382,407
15a Accrued Telecommunications Costs 967,430 967,430 967,430
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 6,353,000 6,349,888 6,349,837
Prepetition
Liabilities
23. Secured Debt 4,267,093 4,267,093 4,267,093
24. Priority Debt (Attach List) 91,675 91,675 91,675
24a Redeemable Preferred Stock 1,620,000 1,620,000 1,620,000
25 Unsecured Debt 47,444,515 47,444,515 47,444,515
26 Other (Attach List) - - -
27 Total Prepetition Liabilities 53,423,283 53,423,283 53,423,283
28 Total Liabilities 59,776,283 59,773,171 59,773,120
Equity
29 Owner's Prepetition Equity (12,258,875) (12,258,875) (12,258,875)
30 Postpetition Cumulative
Profit or (Loss) (39,068,587) (39,106,472) (39,131,267)
31. Total Equity (Deficit) (51,327,462) (51,365,347) (51,390,142)
32 Total Liabilities & Owner's Equity $8,448,821 $8,407,824 $8,382,978
</TABLE>
<PAGE>
In Re: SA Telecommunications, Inc. Accrual Basis-2
Case Nos. 97-2395 (PJW) THROUGH 97-2401 (PJW)
<TABLE>
<CAPTION>
Month Month Month
10/31/98 11/30/98 12/31/98
<S> <C> <C> <C>
6 Other Current Assets
A/R-Jack Matz 0 0 0
A/R Prarie Systems, Inc. 0 0 0
A/R Line Costs 0 0 0
Long Distance Network N/R 0 0 0
-----------------------------------------------------------
0 0 0
===========================================================
12 Intangibles
Goodwill (net of amortization) 0 0 0
===========================================================
13 Other Non-Current Assets
Prepaid Employee Settlement (net) 0 0 0
Security Deposits & Miscellaneous 2,024,310 2,024,310 2,024,310
-----------------------------------------------------------
2,024,310 2,024,310 2,024,310
===========================================================
21 Other Post-Petition Liabilities
Accr Payroll/Payroll Taxes/Benefits 0 0 0
Accr Medical Ins 0 0 0
Accr Property Taxes 0 0 0
-----------------------------------------------------------
0 0 0
===========================================================
24 Priority Debt
Accrued Payroll/Employee Benefits 20,513 20,513 20,513
Accrued Property Taxes 71,162 71,162 71,162
Accrued Sales Taxes 0 0 0
-----------------------------------------------------------
91,675 91,675 91,675
===========================================================
</TABLE>
<PAGE>
Case No. Nos.-2395 (PJW) THROUGH 97-2401 (PJW) Accrual Basis -3
SA Telecommunications, Inc.
Income Statement
<TABLE>
<CAPTION>
Month Month Month
October, 1998 November, 1998 December, 1998
------------- -------------- --------------
<S> <C> <C> <C>
Revenues
1 Gross Revenues 0 0 0
2 Less: Returns & Discounts
3 Net Revenue 0 0 0
Cost Of Goods Sold
4 Beginning Inventory
5 Add: Purchases
6 Less: Ending Inventory
7 Cost Of Goods Sold
8 Gross Profit 0 0 0
Operating Expenses
9 Officer/Insider Compensation 5,578 5,578 5,578
10 Direct Labor/Salaries 28,590 7,700 5,618
11 Payroll Taxes 1,685 42 276
12 Rent & Lease Expense 10,314 607 735
13 Insurance (4,318)
14 Depreciation/Amortization - - -
15 General & Administrative 24,418 14,592 11,410
16 Other (Attach List) - - -
17 Total Operating Expenses 66,267 28,519 23,617
18 Operating Income (66,267) (28,519) (23,617)
Other Income & Expenses
19 Other Income (Attach List)
20 Other Expenses (Attach List)
21 Interest Expense
22 Other 2,039 2,039 1,994
23 Net Other Income & Expenses 2,039 2,039 1,994
Reorganization Expenses
24 Professional Fees (6,983) (2,173)
25 U.S. Trustee Fees (10,000)
26 Other (Attach List)
27 Total Reorganization Expenses
28 Income Tax (1,000)
29 Net Profit (Loss) (64,228) (43,463) (24,796)
</TABLE>
<PAGE>
Case Nos. 97-2395 (PJW) THROUGH 97-2401 (PJW) Accrual Basis -4
<TABLE>
<CAPTION>
CASH RECEIPTS AND
DISBURSEMENTS
TOTAL SATEL TOTAL SATEL TOTAL SATEL TOTAL SATEL TOTAL SATEL TOTAL SATEL TOTAL SATEL TOTAL SATEL
A/P MAIN OPER. P/R GREYROCK MISC. CD & NEC PETTY CASH
<S> <C> <C> <C> <C> <C> <C> <C> <C>
1. BEG. BAL (7,851.69) 41,153.12 - - 89,804.74 602,141.33 - 725,247.50
2. CASH - - - - - - - -
SALES
3. RECEIPTS - - - - - 2,081.81 - 2,081.82
4. LOANS & - - - - - - - -
ADVANCES
5. SALE ASSETS - - - - - - - -
6. (OTHER)
PAYDOWNS
ON REVOLVER 1,988.10 10,000.00 - - (10,000.00) - - 1,988.10
----------- ------------ ----------- --------- ----------- ----------- ---------- -------------
7. TOTAL
RECEIPTS 1,988.10 10,000.00 - - (10,000.00) 2,081.81 - 4,069.92
8. TOTAL
CASH AVAIL. (5,863.59) 51,153.12 - - 79,804.74 604,223.15 - 729,317.42
----------- ------------ ----------- --------- ----------- ----------- ---------- -------------
*DISBURSE-
MENTS - (28,915.22) - - - - - (28,915.22)
EOM
BALANCE (5,863.59) 22,237.90 - - 79,804.74 604,223.15 - 700,402.20
----------- ------------ ----------- --------- ----------- ----------- ---------- -------------
</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 $ 965,044
31 - 60 days old -
61 - 90 days old -
91 + days old -
Total Accounts Receivable $ 965,044
Amount Considered Uncollectable -
Account Receivable $ 965,044
<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 $ 5,382,407 $ - $ - $ - $ 5,382,407
</TABLE>
Status Of Postpetition Taxes
<TABLE>
<CAPTION>
Beginning Amount Ending
Tax Withheld Amount Tax Delinquent
Liability* Or Accrued* Paid Liability Taxes
<S> <C> <C> <C> <C> <C>
Federal
- -------
Withholding** 14,265 1,909 2,863 13,311
FICA-Employee** 6,634 698 908 6,423
FICA-Employer** 6,634 698 908 6,423
Unemployment 1,006 - - 1,006
Income
Other (Attach List)
Total Federal Taxes 28,539 3,304 4,680 27,163 -
State And Local
- ---------------
Withholding - - - -
Sales 451,319* - - 451,319
Excise
Unemployment 6,714 - - 6,714
Real Property
Personal Property
Other (Attach List)
Total State & Local 458,033 - - 458,033 -
Total Taxes 486,572 3,304 4,680 485,196 -
</TABLE>
* 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>
Case Nos. 97-972395 (PJW) THROUGH 02401 (PJW)SA TELECOMMUNICATIONS, INC.
ACCRUAL BASIS - 6
<TABLE>
<CAPTION>
BANK RECONCILIATIONS Acct #1 Acct #2 Acct #3 Acct #4
USC USC USC NEC
A. Bank Wells Fargo Wells Fargo Wells Fargo Various
B. Acct # 4311-269112 4311-269120 4311-269138 Various
C. Purpose A/P Operating Payroll Misc. Depository
--- --------- ------- ----------------
<S> <C> <C> <C> <C>
1 Balance per Bank Statement - 18,986.45 - 582,544.95
2 + Deposits not credited - -
3 - Outstanding Checks (6,683.74) - - -
4 +/- Other Reconciling items 820.15 (35.50) - -
-------------- ---------------- -------------- ----------------
5 Month End Balance per books (5,863.59) 18,950.95 ---------- 582,544.95
============== ================ ============== ================
</TABLE>
<TABLE>
<CAPTION>
BANK RECONCILIATIONS Acct #7 Acct #10 Acct #11
USC AddTel AddTel
A. Bank Wells Fargo Wells Fargo Wells Fargo
B. Acct # 4311-269146 0933 051211 1290-000025-000
C. Purpose Insurance Operating CD
--------- --------- --
<S> <C> <C> <C>
1 Balance per Bank Statement 77,141.56 7,007.51 21,678.20
2 + Deposits not credited
3 - Outstanding Checks (1,573.02) (9,113.98)
4 +/- Other Reconciling items 4,236.20 5,393.42
---------------- -------------- ----------------
5 Month End Balance per books 79,804.74 3,286.95 21,678.20
================ ============== ================
</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 Resigned
2 Dennis Lee Gundy VP-Operations Payroll Resigned
3 Jeffery M. Petrie VP-Telemarketing Payroll Resigned
4 Windle R. Ewing VP-Tariffs and Reg. Affair Payroll 5,577.68
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 $ 5,577.68
</TABLE>
Professionals
<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>
<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 None None -
2
3
4
5
Total $ - $ -
</TABLE>
<PAGE>
ACCRUAL EASIS-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.
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
<TABLE>
<CAPTION>
Full Time Part Time
Total Total
<S> <C> <C>
1. Total number of employees at beginning of period 2 -
2. Total number of employees hired during the period - -
3. Number of employees terminated or resigned during the period - -
4. Total number of employees on payroll at end of period 2 -
</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:
Case No.: 97-02395PJW Thru 97-02401PJW Accrual Basis-1
OFFICE OF THE UNITED STATES TRUSTEE - REGION 3
MONTHLY OPERATING REPORT
for the month ending January, 1999
Document Previously Explanation
Required Attachments: Attached Submitted Attached
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
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 March 11, 1999
- ----------------------------------- ----------------------------------
PRINTED NAME OF RESPONSIBLE PARTY DATE
PREPARER:
/s/ Tom Matta Accounting Manager
- ----------------------------------- ----------------------------------
SIGNATURE OF PREPARER TITLE
Tom Matta March 11, 1999
- ----------------------------------- ----------------------------------
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
Assets Month
1/31/99
1 Cash $720,606
2 Accounts Receivable (Net) 965,044
3 Inventory 34,190
4 Notes Receivable -
5 Prepaid Expenses 15,166
6 Other (Attach List) -
7 Total Current Assets 1,735,006
8 Property, Plant & Equipment 10,454,993
9 Less: Accumulated
Depreciation/Depletion 5,811,127
10 Net Property, Plant & Equipment 4,643,866
11 Due From Affiliates & Insiders -
12 Intangibles (Attach List) -
12a Debt Issuance Cost -
13 Other (Attach List) 2,024,310
14 Total Assets $8,403,182
Postpetition Liabilities
15 Accounts Payable 5,386,224
15a Accrued Telecommunications Costs 967,430
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 6,353,654
Prepetition
Liabilities
23. Secured Debt 4,267,093
24. Priority Debt (Attach List) 91,675
24a Redeemable Preferred Stock 1,620,000
25 Unsecured Debt 47,444,515
26 Other (Attach List) -
27 Total Prepetition Liabilities 53,423,283
28 Total Liabilities 59,776,937
Equity
29 Owner's Prepetition Equity (12,258,875)
30 Postpetition Cumulative
Profit or (Loss) (39,114,880)
31. Total Equity (Deficit) (51,373,755)
32 Total Liabilities & Owner's Equity $8,403,182
<PAGE>
In Re: SA Telecommunications, Inc. Accrual Basis-2
Case Nos. 97-2395 (PJW) THROUGH 97-2401 (PJW)
Month
1/31/99
6 Other Current Assets
A/R-Jack Matz 0
A/R Prarie Systems, Inc. 0
A/R Line Costs 0
Long Distance Network N/R 0
-------------
0
12 Intangibles
Goodwill (net of amortization) 0
13 Other Non-Current Assets
Prepaid Employee Settlement (net) 0
Security Deposits & Miscellaneous 2,024,310
2,024,310
21 Other Post-Petition Liabilities
Accr Payroll/Payroll Taxes/Benefits 0
Accr Medical Ins 0
Accr Property Taxes 0
-------------
0
24 Priority Debt
Accrued Payroll/Employee Benefits 20,513
Accrued Property Taxes 71,162
Accrued Sales Taxes 0
-------------
91,675
<PAGE>
Case No. Nos.-2395 (PJW) THROUGH 97-2401 (PJW) Accrual Basis -3
SA Telecommunications, Inc.
Income Statement
Month
January, 1999
Revenues
1 Gross Revenues 0
2 Less: Returns & Discounts
3 Net Revenue 0
Cost Of Goods Sold
4 Beginning Inventory
5 Add: Purchases
6 Less: Ending Inventory
7 Cost Of Goods Sold
8 Gross Profit 0
Operating Expenses
9 Officer/Insider Compensation 4,133
10 Direct Labor/Salaries 3,223
11 Payroll Taxes
12 Rent & Lease Expense 2,332
13 Insurance
14 Depreciation/Amortization -
15 General & Administrative 10,145
16 Other (Attach List) - - -
17 Total Operating Expenses 19,833
18 Operating Income (19,833)
Other Income & Expenses
19 Other Income (Attach List)
20 Other Expenses (Attach List)
21 Interest Expense
22 Other 38,019
23 Net Other Income & Expenses 38,019
Reorganization Expenses
24 Professional Fees (1,798)
25 U.S. Trustee Fees
26 Other (Attach List)
27 Total Reorganization Expenses
28 Income Tax
29 Net Profit (Loss) 16,388
<PAGE>
Case Nos. 97-2395 (PJW) THROUGH 97-2401 (PJW) Accrual Basis -4
<TABLE>
<CAPTION>
CASH RECEIPTS AND
DISBURSEMENTS
TOTAL SATEL TOTAL SATEL TOTAL SATEL TOTAL SATEL TOTAL SATEL TOTAL SATEL TOTAL SATEL TOTAL SATEL
A/P MAIN OPER. P/R GREYROCK MISC. CD & NEC PETTY CASH
<S> <C> <C> <C> <C> <C> <C> <C> <C>
1. BEG. BAL (5,863.59) 22,237.90 - - 79,804.74 604,223.15 - 700,402.20
2. CASH
SALES - - - - - - - -
3. RECEIPTS - - - - - 1,991.29 - 1,991.29
4. LOANS &
ADVANCES - - - - - - - -
5. SALE ASSETS - - - - - - - -
6. (OTHER)
PAYDOWNS
ON REVOLVER 5,010.67 (3,286.95) - - - (21,678.20) - (19,954.48)
----------- ------------ ----------- --------- ----------- ----------- ---------- ------------
7. TOTAL
RECEIPTS 5,010.67 (3,286.95) - - - (19,686.91) - (17,963.19)
8. TOTAL
CASH AVAIL. (852.92) 18,950.95 - - 79,804.74 584.536.24 - 682,439.01
----------- ------------ ----------- --------- ----------- ----------- ---------- -----------
*DISBURSE-
MENTS - 38,170.74 - - (3.58) - - 38,167.16
EOM
BALANCE (852.92) 57,121.69 - - 79,801.16 584,536.24 - 720,606.17
----------- ------------ ----------- --------- ----------- ----------- ---------- ------------
</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 $ 965.044
31 - 60 days old -
61 - 90 days old -
91 + days old -
Total Accounts Receivable $ 965,044
Amount Considered Uncollectable -
Account Receivable $ 965,044
<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 $ 5,386,224 $ - $ - $ - $ 5,386,224
</TABLE>
Status Of Postpetition Taxes
<TABLE>
<CAPTION>
Beginning Amount Ending
Tax Withheld Amount Tax Delinquent
Liability* Or Accrued* Paid Liability Taxes
<S> <C> <C> <C> <C> <C>
Federal
- -------
Withholding** 13,311 1,909 - 15,220
FICA-Employee** 6,423 767 - 7,191
FICA-Employer** 6,423 767 - 7,191
Unemployment 1,006 - - 1,006
Income
Other (Attach List)
Total Federal Taxes 27,163 3,444 - 30,607 -
State And Local
- ---------------
Withholding - - - -
Sales 451,319* - - 451,319
Excise
Unemployment 6,714 - - 6,714
Real Property
Personal Property
Other (Attach List)
Total State & Local 458,033 - - 458,033 -
Total Taxes 485,196 3,444 - 488,640 -
</TABLE>
* 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>
Case Nos. 97-972395 (PJW) THROUGH 02401 (PJW) SA TELECOMMUNICATIONS, INC.
ACCRUAL BASIS - 6
<TABLE>
<CAPTION>
BANK RECONCILIATIONS Acct #1 Acct #2 Acct #3 Acct #4
USC USC USC NEC
A. Bank Wells Fargo Wells Fargo Wells Fargo Various
B. Acct # 4311-269112 4311-269120 4311-269138 Various
C. Purpose A/P Operating Payroll Misc. Depository
--- --------- ------- ----------------
<S> <C> <C> <C> <C>
1 Balance per Bank Statement - 57,157.19 - 584,536.24
2 + Deposits not credited - -
3 - Outstanding Checks (1,673.07) - - -
4 +/- Other Reconciling items 820.15 (35.50) - -
-------------- ---------------- -------------- ----------------
5 Month End Balance per books (852.92) 57,121.69 - 584,536.24
============== ================ ============== ================
</TABLE>
<TABLE>
<CAPTION>
BANK RECONCILIATIONS Acct #7 Acct #10 Acct #11
USC AddTel AddTel
A. Bank Wells Fargo Wells Fargo Wells Fargo
B. Acct # 4311-269146 0933 051211 1290-000025-000
C. Purpose Insurance Operating CD
--------- --------- --
<S> <C> <C> <C>
1 Balance per Bank Statement 77,137.98 - -
2 + Deposits not credited
3 - Outstanding Checks (1,573.02) (9,113.98) -
4 +/- Other Reconciling items 4,236.20 9,113.98
---------------- -------------- ----------------
5 Month End Balance per books 79,801.16 - -
================ ============== ================
</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 Resigned
2 Dennis Lee Gundy VP-Operations Payroll Resigned
3 Jeffery M. Petrie VP-Telemarketing Payroll Resigned
4 Windle R. Ewing VP-Tariffs and Reg. Affair Payroll 5,577.68
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 $ 5,577.68
</TABLE>
Professionals
<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>
<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 None None -
2
3
4
5
Total $ - $ -
</TABLE>
<PAGE>
ACCRUAL EASIS-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.
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
<TABLE>
<CAPTION>
Full Time Part Time
Total Total
<S> <C> <C>
1. Total number of employees at beginning of period 2 -
2. Total number of employees hired during the period - -
3. Number of employees terminated or resigned during the period - -
4. Total number of employees on payroll at end of period 2 -
</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:
