<PAGE> 1
FORM 10-Q
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON D.C. 20549
(MARK ONE)
(x) QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES
EXCHANGE ACT OF 1934
For the quarterly period ended March 31, 1998
OR
( ) TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES
EXCHANGE ACT OF 1934
For the transition period from _______________ to _____________
Commission File Number: 333-10161
------------------
Sygnet Wireless, Inc.
(Exact name of registrant as specified in its charter)
Ohio 34-1689165
- -------------------------------- ------------------
(State or other jurisdiction of (I.R.S. Employer
incorporation or organization) Identification No.)
6550-B Seville Drive, Canfield, Ohio 44406
- ------------------------------------ ----------------
(Address of principal executive offices) (Zip Code)
(330) 565-1000
- ----------------------------------------------------
(Registrant's telephone number, including area code)
Indicate by check mark whether the registrant (1) has filed all reports required
to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during
the preceding 12 months (or for such shorter period that the registrant was
required to file such reports), and (2) has been subject to such filing
requirements for the past 90 days.
(x) Yes ( ) No
<PAGE> 2
INDEX
SYGNET WIRELESS, INC.
FORM 10-Q
PERIOD ENDED MARCH 31, 1998
PART I - FINANCIAL INFORMATION
- --------------------------------
Item 1. Financial Statements (Unaudited)
Consolidated Balance Sheets as of March 31, 1998 and December
31, 1997
Consolidated Statements of Operations for the Three Months
Ended March 31, 1998 and March 31, 1997
Consolidated Statements of Cash Flows for the Three Months
Ended March 31, 1998 and March 31, 1997
Notes to Consolidated Financial Statements
Item 2. Management's Discussion and Analysis of Financial Condition
and Results of Operations
PART II - OTHER INFORMATION
- -----------------------------
Item 6. Exhibits and Reports on Form 8-K
2
<PAGE> 3
SYGNET WIRELESS, INC.
CONSOLIDATED BALANCE SHEETS
<TABLE>
<CAPTION>
MARCH 31 DECEMBER 31
1998 1997
--------------- --------------
ASSETS (UNAUDITED) (NOTE)
<S> <C> <C>
Current assets:
Cash and cash equivalents $ 2,108,974 $ 860,086
Accounts receivable, less allowance for doubtful accounts of $634,200 at
March 31, 1998 and $809,800 at December 31, 1997 10,060,665 10,711,627
Inventory 1,423,362 1,867,445
Prepaid expenses 416,709 309,460
------------- -------------
Total current assets 14,009,710 13,748,618
Other assets:
Cellular licenses - net 244,264,927 245,866,235
Customer lists - net 18,097,088 19,382,087
Deferred financing costs - net 8,697,005 8,982,430
------------- -------------
Total other assets 271,059,020 274,230,752
Property and equipment--net 53,072,881 53,007,015
============= =============
Total assets $ 338,141,611 $ 340,986,385
============= =============
LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities:
Accounts payable $ 2,672,517 $ 3,264,206
Deferred revenue 2,174,495 2,058,066
Accrued expenses and other liabilities 3,648,068 4,196,230
Interest payable 9,626,441 6,749,755
------------- -------------
Total current liabilities 18,121,521 16,268,257
Long-term debt 306,000,000 305,500,000
Shareholders' equity:
Common shares, $.01 par, Class A, 1 vote per share, 60,000,000 shares
authorized, 4,017,591 shares issued and outstanding as of March 31,
1998; 4,010,653 share issued and outstanding as of December 31, 1997 40,176 40,107
Common shares, $.01 par, Class B, 10 votes per share; 10,000,000 shares
authorized, 5,153,039 shares issued and outstanding as of March 31,
1998; 5,159,977 shares issued and outstanding as of December 31, 1997 51,530 51,599
Additional paid-in capital 47,598,498 47,598,498
Retained deficit (33,420,162) (28,222,124)
Note receivable from officer/shareholder (249,952) (249,952)
------------- -------------
Total shareholders' equity 14,020,090 19,218,128
------------- -------------
Total liabilities and shareholders' equity $ 338,141,611 $ 340,986,385
============= =============
</TABLE>
Note: The balance sheet at December 31, 1997 has been derived from the audited
consolidated financial statements at that date but does not include all of the
information and footnotes required by generally accepted accounting principles
for complete financial statements.
3
<PAGE> 4
SYGNET WIRELESS, INC.
CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED)
<TABLE>
<CAPTION>
THREE MONTHS ENDED
MARCH 31,
1998 1997
-------------- --------------
<S> <C> <C>
Revenue:
Subscriber revenue $ 14,362,540 $ 11,725,100
Roamer revenue 6,230,401 5,145,503
Equipment sales 1,189,807 944,677
Other revenue 385,948 438,462
------------ ------------
Total revenue 22,168,696 18,253,742
Costs and expenses:
Cost of services 2,782,559 2,189,472
Cost of equipment sales 2,240,388 2,155,707
General and administrative 4,630,691 3,674,080
Selling and marketing 2,776,250 2,342,679
Depreciation and amortization 7,804,626 6,736,650
------------ ------------
Total costs and expenses 20,234,514 17,098,588
------------ ------------
Income from operations 1,934,182 1,155,154
Other:
Interest expense, net 7,069,920 7,402,412
Other 62,300 -
------------ ------------
Net loss $ (5,198,038) $ (6,247,258)
============ ============
Earnings per share information:
Net loss $ (5,198,038) $ (6,247,258)
Preferred stock dividend and accretion - $ (798,789)
------------ ------------
Net loss applicable to common shareholders $ (5,198,038) $ (7,046,047)
============ ============
Net loss per share applicable to common shareholders $ (.57) $ (1.15)
============ ============
Common shares outstanding 9,170,630 6,170,630
============ ============
</TABLE>
4
<PAGE> 5
SYGNET WIRELESS, INC.
CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED)
<TABLE>
<CAPTION>
FOR THE THREE MONTHS ENDED
MARCH 31,
--------------------------------
1998 1997
-------------- --------------
<S> <C> <C>
OPERATING ACTIVITIES
Net loss $(5,198,038) $(6,247,258)
Adjustments to reconcile net loss to net cash
provided by operating activities:
Depreciation 4,632,892 3,551,748
Amortization 3,171,734 3,184,902
Changes in operating assets and liabilities:
Accounts receivable 650,962 321,458
Inventory 444,083 (106,930)
Prepaid and deferred expenses (107,251) (26,936)
Accounts payable and accrued expenses (1,023,422) 1,387,215
Accrued interest payable 2,876,686 3,143,807
----------- -----------
Net cash provided by operating activities 5,447,646 5,208,006
INVESTING ACTIVITIES
Acquisition of Horizon - (599,442)
Purchases of property and equipment (4,698,758) (4,301,155)
----------- -----------
Net cash used in investing activities (4,698,758) (4,900,597)
FINANCING ACTIVITIES
Proceeds from long-term debt 4,500,000 3,000,000
Principal payments on long-term debt (4,000,000) (1,000,000)
Increase in financing costs - (41,259)
----------- -----------
Net cash provided by financing activities 500,000 1,958,741
Increase in cash and cash equivalents 1,248,888 2,266,150
Cash and cash equivalents at beginning of period 860,086 2,257,748
----------- -----------
Cash and cash equivalents at end of period $ 2,108,974 $ 4,523,898
=========== ===========
</TABLE>
5
<PAGE> 6
SYGNET WIRELESS, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)
1. BASIS OF PRESENTATION AND PRO FORMA INFORMATION
The accompanying unaudited consolidated financial statements have been
prepared in accordance with generally accepted accounting principles for
interim financial information and with the instructions to Form 10-Q and
Article 10 of Regulation S-X. Accordingly, they do not include all of the
information and footnotes required by generally accepted accounting
principles for complete financial statements. In the opinion of management,
all adjustments (consisting of normal recurring accruals) considered
necessary for a fair presentation have been included. Operating results for
the three-month period ended March 31, 1998 are not necessarily indicative of
the results that may be expected for the year ended December 31, 1998. For
further information, refer to the consolidated financial statements and notes
thereto included in the Company's annual report on Form 10-K for the fiscal
year ended December 31, 1997 (File No. 333-10161) filed with the Securities
and Exchange Commission.
2. LONG-TERM DEBT
The Company has $110 million 11 1/2% unsecured Senior Notes due October 1,
2006 (the Notes). The Notes pay interest semiannually on April 1 and October
1 of each year commencing April 1, 1997. The Notes are redeemable at the
option of the Company at redemption prices (expressed as a percentage of
principal amount) ranging from 105.75% in 2001 to 100.00% in 2005 and
thereafter. Among other things, the Notes contain certain covenants which
limit additional indebtedness, payment of dividends, sale of assets or stock,
changes in control and transactions with related parties.
Sygnet Communications, Inc.(Sygnet), a wholly-owned subsidiary of the
Company, has a financing agreement (the Bank Credit Facility) with a
commercial bank group. The Bank Credit Facility is a senior secured reducing
revolver that provides Sygnet the ability to borrow up to $300 million
through June 30, 1999. Mandatory reductions in the revolver occur quarterly
thereafter through June 30, 2005, when the Bank Credit Facility terminates.
The Bank Credit Facility is secured by certain assets and the stock of
Sygnet. The Bank Credit Facility provides for various borrowing rate options
based on either a fixed spread over the London Interbank Offered Rate (LIBOR)
or the prime rate. As of March 31, 1998, $196 million was outstanding under
the Bank Credit Facility.
3. REDEEMABLE PREFERRED STOCK AND WARRANTS
On April 3, 1997, 100,000 shares of Series A Senior Cumulative Nonvoting
Preferred Stock (Preferred Stock), were redeemed by the Company at a cost of
$10 million which was funded by the Bank Credit Facility. On June 20, 1997,
the remaining 118,394.51 shares of Preferred Stock were redeemed by the
Company at a cost of $11,839,451. This redemption was funded by the Common
Stock Sale described in Note 4.
The Preferred Stock had a redemption value of $100 per share and was recorded
at fair value on the date of issuance less issuance costs. Dividends were
cumulative from the date of issuance, accrued quarterly in arrears and were
payable in shares of Preferred Stock. The dividend rates increased annually
from 15% in 1997 to 21% in 2000 and thereafter. As of March 31, 1997, the
Company accrued stock dividends in the amount of $708,000 (which represented
7,080 shares). The Preferred Stock included the potential issuance of
warrants to purchase shares of the Company's Class A Common Stock. For
financial reporting purposes, the estimated fair value of the warrants was
included with the Preferred Stock in the accompanying balance sheet and the
excess of the redemption value of the Preferred Stock over the carrying value
was accreted by periodic charges to additional paid-in capital over the life
of the issue. No warrants were issued.
The Company has authorized 5 million shares of Nonvoting Preferred Stock, par
value $.01 per share, of which 500,000 are designated as Series A Senior
Cumulative Nonvoting Preferred Stock.
4. SHAREHOLDERS EQUITY
On June 20, 1997, the Company issued and sold 3,000,000 shares of Class A
Common Stock, $.01 par value, to Boston Ventures Limited Partnership V
(Boston Ventures) at a price of $15 per share (Common Stock Sale). The
proceeds of $43.9 million, net of issuance fees, were used to redeem the
remaining outstanding Preferred Stock as described in Note 3, and to reduce
amounts outstanding under the Bank Credit Facility. As a condition of the
Common Stock Sale, Boston Ventures has two representatives on the Company's
eleven member board of directors.
In August 1997, Boston Ventures purchased 1,000,000 shares of Class B Common
Stock from shareholders pursuant to a tender offer which, upon purchase,
became Class A Common Stock.
6
<PAGE> 7
MANAGEMENT'S DISCUSSION AND ANALYSIS OF
FINANCIAL CONDITION AND RESULTS OF OPERATIONS
The following discussion and analysis should be read in conjunction with the
Company's unaudited consolidated financial statements and the notes thereto
appearing elsewhere in this report. The Company's operating results for the
periods discussed may not be indicative of future performance. In the text
below, financial statement numbers have been rounded, however, the percentage
changes are based on the actual financial statements.
THE COMPANY'S HISTORICAL RESULTS OF OPERATIONS
THREE MONTHS ENDED MARCH 31, 1998 COMPARED TO THREE MONTHS ENDED MARCH 31, 1997.
For the three months ended March 31, 1998, the Company's total revenue increased
by 21.5% to $22.2 million, from $18.3 million in the first three months of 1997.
Earnings before interest, taxes, depreciation and amortization, and other
non-cash expenses (EBITDA) increased by 23.4% to $9.7 million (43.9% of total
revenue) for the three months ended March 31, 1998 from $7.9 million (43.2%. of
total revenue) during the comparable period in 1997. The growth in revenue and
EBITDA was the result of continued growth of the subscriber base and increased
roaming revenue generated by additional usage. The debt incurred as a result of
the Horizon Acquisition as well as the amortization expense from the acquired
licenses and customer lists contributed to a net loss of $5.2 million for the
three months ended March 31, 1998. This loss represents an improvement from the
$6.2 million loss for the first quarter of 1997. This improvement was due mainly
to the increase in revenue and EBITDA, as described above, in addition to a
decrease in interest expense due to lower levels of debt.
Subscriber revenue grew by 22.5% to $14.4 million for the three months ended
March 31, 1998 compared to $11.7 million for the comparable period in 1997
mainly as a result of continued subscriber growth in the Company's markets,
despite a decline in average revenue per subscriber. The Company's number of
subscribers increased by 29.6% to 147,688 at March 31, 1998 from 113,986 at
March 31, 1997 due mainly to internal growth. On a per subscriber basis, average
monthly subscriber revenue declined by 7.5% to $32.80 in the first quarter of
1998 from $35.44 in the first quarter of 1997. This was due to increased
promotional activity, competitive market pressures and the changing mix of
subscribers reflecting increasing levels of safety and security subscribers, who
typically purchase less expensive rate plans that include packaged minutes of
use.
Roamer revenue grew by 21.1% to $6.2 million during the three months ended March
31, 1998 compared to $5.1 million in the comparable period in 1997. This
increase was mainly a result of increased roaming traffic throughout all of the
company's systems which more than offset the decline in roaming revenue per
minute of use. Roaming minutes of use increased by 31.2% to 11.3 million for the
three months ended March 31, 1998 from 8.6 million for the comparable period in
1997. Roaming revenue per minute for the three months ended March 31, 1998
decreased to $0.55 from $0.60 for the comparable period in 1997. This decrease
was mainly a result of increased regional roaming traffic that is priced lower
than other roaming traffic.
Equipment sales increased by 26.0% to $1.2 million for the three months ended
March 31, 1998 compared to $0.9 million for the comparable period in 1997. This
increase was due mainly to an increased number of telephones and accessories
sold to existing customers for retention purposes.
Cost of services increased by 27.1% to $2.8 million for the three months ended
March 31, 1998 from $2.2 million for the comparable period in 1997. This
increase was a result of an increase in billing, call delivery, and home
subscriber net roaming costs associated with the growth in the subscriber base.
Partially offsetting this increase are lower rates for long distance charges and
the elimination of costs associated with a switching agreement. As a percentage
of total revenue, cost of services was 12.6% for the three months ended March
31, 1998 compared to 12.0% for the same period in 1997.
Cost of equipment sales increased 3.9% to $2.2 million for the three months
ended March 31, 1998 from $2.1 million in the comparable 1997 period. This
increase was due mainly to an increased number of telephones and accessories
distributed to new subscribers, as well as sales to existing subscribers, offset
by a reduction in the average cost of telephones and accessories.
General and administrative costs increased by 26.0% to $4.6 million for the
three months ended March 31, 1998 from $3.7 million for the comparable period in
1997. This increase was mainly a result of the growth in the subscriber base
which caused an increase in compensation, customer retention and bad debt
expense. As a percentage of total revenues general and administrative expense
was 20.9% for the three months ended March 31, 1998 compared to 20.1% for the
same period in 1997.
7
<PAGE> 8
Selling and marketing costs increased by 18.5% to $2.8 million for the three
months ended March 31, 1998 from $2.3 million during the first quarter of 1997.
This increase is mainly due to an increase in new subscribers added period to
period which caused higher compensation, advertising and occupancy expenses.
Selling and marketing cost per gross new subscriber, including the equipment
subsidy, decreased to $298 for the three months ended March 31, 1998 from $310
for the comparable period in 1997. This was primarily a result of a decrease in
the average cost of telephones and accessories.
Depreciation and amortization increased to $7.8 million for the three months
ended March 31, 1998 from $6.7 million for the comparable period in 1997 due to
the depreciation on higher levels of fixed assets resulting from capital
expenditures for system growth. For the three months ended March 31, 1998, the
Company incurred $4.7 million in capital expenditures, primarily for cell site
and system enhancements.
Interest expense decreased to $7.1 million for the three months ended March 31,
1998 from $7.4 million for the comparable period in 1997. This decrease was
primarily a result of a lower level of borrowing due to the Common Stock Sale as
described in Note 4, Notes to Consolidated Financial Statements (unaudited).
LIQUIDITY AND CAPITAL RESOURCES
The Company has historically relied on internally generated funds to fund debt
service and a substantial portion of its capital expenditures. Bank credit
facilities have been used for additional support of capital expenditure programs
and to fund acquisitions. During 1997, the Company issued additional Common
Stock and redeemed its outstanding Preferred Stock. See Notes 3 and 4, Notes to
Consolidated Financial Statements (unaudited).
Net cash provided by operating activities was $5.4 million for the 3 months
ended March 31, 1998 compared to $5.2 million for the comparable period in 1997.
The increase was primarily the result of the increase in the number of
subscribers and the related growth in revenue and EBITDA, offset somewhat by a
decrease in net working capital.
Net cash used in investing activities was $4.7 million for the three months
ended March 31, 1998 compared to $4.9 million for the comparable period in 1997.
In 1997, this activity reflects final payments for businesses acquired in 1996,
and in 1998, reflects increased levels of purchases of property and equipment
primarily for system buildout.
Net cash provided by financing activities was $0.5 million for the three months
ended March 31, 1998 compared to $2.0 million for the comparable period in 1997.
This primarily reflects an improvement in cash management which resulted in a
decrease in cash and cash equivalents at March 31, 1998 to $2.1 million compared
to $4.5 million at March 31, 1997.
The Company's capital expenditure plans include a continued buildout of its
systems in order to improve coverage and increase usage. During 1998, the
Company plans to build 15 to 20 new cell sites. It also plans to strengthen its
existing cellular network by sectorizing high traffic cells, increasing
microwave capacity and upgrading the Ohio and Pennsylvania systems to state of
the art IS-136 TDMA digital. As of March 31, 1998, the Company has incurred $4.7
million in capital expenditures and expects to spend between $15 to $17 million
for the year ending December 31, 1998. The Company plans to use internally
generated funds plus funds available under the Bank Credit Facility to finance
this capital expenditure program. As of March 31, 1998, the Company had $31.7
million in additional funds available to borrow under the Bank Credit Facility.
As a part of the Horizon Acquisition, the Company acquired interim operating
authority for the Rural Service Area PA-2. On June 3, 1997, the Federal
Communications Commission granted the application of Pinellas Communications for
a license to operate a permanent cellular telephone system in PA-2. The Company
does not believe that the loss of PA-2 would have a material adverse effect upon
the Company's result of operations, financial position or cash flows.
The Company is a holding company with no direct operations and no significant
assets other than the stock of Sygnet Communications, Inc., its wholly owned
subsidiary. Accordingly, the Company's ability to make principal, interest and
other payments to holders of the Senior Notes when due, and to meet its other
obligations, is dependent upon the receipt of sufficient funds from its
subsidiary. The Bank Credit Facility contains certain restrictions upon the
ability of the subsidiary to distribute funds to the Company. The indenture
under which the Senior Notes were issued imposes certain limits on the ability
of the Company to, among other things, incur additional indebtedness. In
addition, the agreement under which the Company issued Common Stock in June 1997
imposes certain limits on the ability of the Company to, among other things,
incur additional indebtedness, issue additional capital stock or engage in
certain types of transactions.
8
<PAGE> 9
IMPACT OF YEAR 2000
The Year 2000 issue is the result of the inability of some computer programs to
distinguish the Year 1900 from the Year 2000. Most computer programs and
operating systems were written using two digits to define the applicable year
rather than four digits. This means that any equipment containing computer
programs with time-sensitive software may recognize a date using "00" as the
Year 1900 rather than the Year 2000. In some instances this could result in
system failures, disruption in operations and possible inaccuracies of data.
The Company's vulnerability as it relates to this issue is mainly with the third
party vendors whose computer equipment is used in the operations of the MTSO and
the computer billing system.
To assess the exposure to Year 2000 issues for all areas of the business, the
Company has formed a project team. This project team will evaluate all vendors
to determine if they are Year 2000 ready as well as identify and test the
computer equipment on which the Company is dependent for business operations.
To date, the Company has initiated formal communications with its significant
third party vendors about the Year 2000 issue. These vendors have responded with
some assurance that their respective systems are or will be able to accommodate
the Year 2000 date. However, the project team has not yet tested these systems
to provide assurance of compliance and currently there can be no assurance that
these systems will be converted on a timely basis and that the Year 2000 issue
will not have an adverse effect on the Company's operations.
The cost to the Company of being prepared for the Year 2000 has not yet been
determined. The goal of the project team is to assess the impact of the Year
2000 issue and develop a plan and cost estimate by mid 1998 that will allow the
Company to resolve any Year 2000 issues by December 31, 1998.
9
<PAGE> 10
FORWARD LOOKING STATEMENTS
The description of the Company's capital expenditure plans and Year 2000
preparedness set forth above are forward looking statements made pursuant to the
safe harbor provisions of the Private Securities Litigation Reform Act of 1995.
These plans involve a number of risks and uncertainties. The important factors
that could cause actual capital expenditures, Year 2000 preparedness or the
Company's performance to differ materially from the plans include, without
limitation, the Company's continued ability to satisfy the financial performance
and other covenants of the Bank Credit Facility; the impact of competition from
other providers of cellular telephone and personal communications services and
other technologies that may be developed; the inability of third party vendors
to be Year 2000 compliant; and the occurrence of other technological changes
affecting the Company's business. For further information regarding these and
other risk factors, see "Business - Risk Factors" in the Company's annual report
(File No. 333-10161) on Form 10K for the year ended December 31, 1997 filed with
the Securities and Exchange Commission. The Company disclaims any duty to
release publicly any updates or revisions to these forward looking statements.
10
<PAGE> 11
PART II - OTHER INFORMATION
Item 6. Exhibits and Reports on Form 8-K
(a) Exhibits
3.1 Amended and restated Articles of Incorporation of Sygnet
Wireless, Inc. 1[3.1]
3.2 Code of Regulations of Sygnet Wireless, Inc. 1[3.2]
4.1 Indenture dated as of September 26, 1996 between Sygnet
Wireless, Inc. and Fleet National Bank, as Trustee. 1[4]
10.23 Investment Agreement dated as of June 20, 1997 between
Sygnet Wireless, Inc. and Boston Ventures Limited
Partnership V. 2[10.23]
10.24 Registration Rights Agreement dated as of June 20, 1997
among Sygnet Wireless, Inc., Boston Ventures Limited
Partnership V, J.D. Williamson, II and Warren P.
Williamson, III. 2[10.24]
10.25 Stockholders Agreement dated as of June 20, 1997 among
Sygnet Wireless, Inc., Boston Ventures Limited
Partnership V, J.D. Williamson, II and Warren P.
Williamson, III. 2[10.25]
27.1 Financial Data Schedule.
(b) Reports on Form 8-K. There were no reports on Form 8-K filed during
the quarter ended March 31, 1998. On May 5, 1998 the Company filed an
8-K reporting the issuance of a press release which announced the
decision of the Company to explore strategic alternatives, including
the possible sale of the company.
1 Filed as an exhibit to the Company's Quarterly Report on Form 10Q for the
quarterly period ended September 30, 1996, as the exhibit number
indicated in brackets and incorporated by reference herein.
2 Filed as an exhibit to the Company's Quarterly Report on Form 10Q for the
quarterly period ended June 30, 1997, as the exhibit number indicated in
brackets and incorporated by reference herein.
11
<PAGE> 12
SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of
1934, the registrant has duly caused this report to be signed on its behalf by
the undersigned hereunto duly authorized.
SYGNET WIRELESS, INC.
By: /s/ CRAIG T. SHEETZ
-------------------------------------
Craig T. Sheetz
Vice President and
Chief Financial Officer
(as duly authorized officer and principal
financial officer of the registrant)
Dated: May 5, 1998
12
<TABLE> <S> <C>
<ARTICLE> 5
<CIK> 0000879313
<NAME> SYGNET WIRELESS, INC.
<S> <C>
<PERIOD-TYPE> 3-MOS
<FISCAL-YEAR-END> DEC-31-1998
<PERIOD-START> JAN-01-1998
<PERIOD-END> MAR-31-1998
<CASH> 2,108,974
<SECURITIES> 0
<RECEIVABLES> 10,060,665
<ALLOWANCES> 0
<INVENTORY> 1,423,362
<CURRENT-ASSETS> 14,009,710
<PP&E> 53,072,881
<DEPRECIATION> 0
<TOTAL-ASSETS> 338,141,611
<CURRENT-LIABILITIES> 18,121,521
<BONDS> 306,000,000
0
0
<COMMON> 91,706
<OTHER-SE> 13,928,384
<TOTAL-LIABILITY-AND-EQUITY> 338,141,611
<SALES> 22,168,696
<TOTAL-REVENUES> 22,168,696
<CGS> 5,022,947
<TOTAL-COSTS> 20,234,514
<OTHER-EXPENSES> 60,300
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 7,069,920
<INCOME-PRETAX> (5,198,038)
<INCOME-TAX> 0
<INCOME-CONTINUING> (5,198,038)
<DISCONTINUED> 0
<EXTRAORDINARY> 0
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</TABLE>