<PAGE>
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K/A
CURRENT REPORT
PURSUANT TO SECTION 13 OR 15(D) OF
THE SECURITIES EXCHANGE ACT OF 1934
Date of Report (Date of earliest event reported): November 13, 1997
------------------
PREMIERE TECHNOLOGIES, INC.
(Exact name of registrant
as specified in its charter)
Georgia 0-27778 59-3074176
---------------------- ----------- ------------------
(State or other (Commission (I.R.S. Employer
jurisdiction of File Number) Identification No.)
incorporation)
3399 Peachtree Road, N.E.
The Lenox Building, Suite 700
Atlanta, Georgia 30326
----------------------------------------- ----------
(Address of principal executive offices) (Zip Code)
Registrant's telephone number, including area code: (404) 262-8400
N/A
-------------------------------------------------------------
(Former name or former address, if changed since last report)
<PAGE>
Premiere Technologies, Inc. ("Premiere" or the "Company") hereby amends its
Current Report on 8-K dated November 13, 1997, filed with the Securities and
Exchange Commission (the "Commission") on December 5, 1997, as amended by its
Current Report on Form 8-K/A filed with the Commission on December 24, 1997, to
amend and restate the "Pro Forma Condensed Combined Financial Information" filed
as Exhibit 99.6 to this report.
-2-
<PAGE>
ITEM 7. FINANCIAL STATEMENTS, PRO FORMA FINANCIAL INFORMATION AND EXHIBITS.
(c) EXHIBITS.
11.1 Statement Re: Computation of Net Income Per Share*
23.1 Consent of Arthur Andersen LLP*
23.2 Consent of Ernst & Young LLP*
23.3 Consent of Price Waterhouse*
27.1 Financial Data Schedule of Premiere Technologies, Inc.*
99.1 Press Release dated November 14, 1997*
99.2 Agreement and Plan of Merger dated as of November 13, 1997 (with
exhibits) by and among Premiere Technologies, Inc., Nets Acquisition
Corp. and Xpedite Systems, Inc.*
99.3 Share Purchase Agreement dated as of August 8, 1997, by and among
Xpedite Systems, Inc., Xpedite Systems Holdings (UK) Limited, and the
shareholders of Xpedite Systems Limited.*
99.4 Consolidated Financial Statements of Xpedite Systems, Inc., as
described in Item 5 of this Form 8-K.*
99.5 Consolidated Financial Statements of Xpedite Systems Limited, as
described in Item 5 of this Form 8-K.*
99.6 Pro Forma Condensed Combined Financial Information, as described in
Item 5 of this Form 8-K.
99.7 Consolidated Financial Statements of Premiere Technologies, Inc., as
described in Item 5 of this Form 8-K.*
99.8 Management's Discussion and Analysis of Financial Condition and
Results of Operations of Premiere Technologies, Inc., as described in
Item 5 of this Form 8-K.*
99.9 Description of Business of Premiere Technologies, Inc., as described
in Item 5 of this Form 8-K.*
- --------------
* Previously filed.
-3-
<PAGE>
SIGNATURES
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.
PREMIERE TECHNOLOGIES, INC.
By: /s/ Patrick G. Jones
---------------------------
Patrick G. Jones
Senior Vice President of Finance
and Legal
Dated: January 26, 1998
-4-
<PAGE>
EXHIBIT INDEX
No. Description
--- -----------
11.1 Statement Re: Computation of Net Income Per Share*
23.1 Consent of Arthur Andersen LLP*
23.2 Consent of Ernst & Young LLP*
23.3 Consent of Price Waterhouse*
27.1 Financial Data Schedule of Premiere Technologies, Inc.*
99.1 Press Release dated November 14, 1997*
99.2 Agreement and Plan of Merger dated as of November 13, 1997
(with exhibits) by and among Premiere Technologies, Inc.,
Nets Acquisition Corp. and Xpedite Systems, Inc.*
99.3 Share Purchase Agreement dated as of August 8, 1997, by and among
Xpedite Systems, Inc., Xpedite Systems Holdings (UK) Limited, and the
shareholders of Xpedite Systems Limited.*
99.4 Consolidated Financial Statements of Xpedite Systems, Inc.,
as described in Item 5 of this Form 8-K.*
99.5 Consolidated Financial Statements of Xpedite Systems Limited,
as described in Item 5 of this Form 8-K.*
99.6 Pro Forma Combined Condensed Financial Information, as
described in Item 5 of this Form 8-K.
99.7 Consolidated Financial Statements of Premiere Technologies,
Inc., as described in Item 5 of this Form 8-K.*
99.8 Management's Discussion and Analysis of Financial Condition
and Results of Operations of Premiere Technologies, Inc., as
described in Item 5 of this Form 8-K.*
99.9 Description of Business of Premiere Technologies, Inc., as
described in Item 5 of this Form 8-K.*
- ----------------
* Previously filed.
<PAGE>
EXHIBIT 99.6
Unaudited Pro Forma Condensed Combined Financial Information
The unaudited pro forma condensed combined financial information gives
effect to Premiere Technologies, Inc.'s ("Premiere" or the "Company")
contemplated merger (the "Merger") with Xpedite Systems, Inc. ("Xpedite") as
though such transaction occurred on January 1, 1994. The Company and Xpedite
entered into a definitive merger agreement on November 13, 1997. Under the terms
of the merger agreement, the Company will exchange its common shares for
Xpedite's using an exchange ratio which values Xpedite's shares at $34 per share
and the Company's shares at its average trading price for the 20 trading days
preceding the date on which Xpedite stockholders vote on the Merger. Except in
certain limited circumstances, the exchange ratio is subject to a maximum and
minimum ratio of the number of Company's shares to be issued for each share of
Xpedite's of 1.25 and .8675 per share, respectively. The pro forma unaudited
combined financial information reflect this transaction assuming an exchange
ratio of 1.25 shares of the Company's stock for each outstanding share of
Xpedite.
The unaudited pro forma condensed combined statement of operations also
gives effect to the contemplated acquisition (the "XSL Acquisition") by Xpedite
of Xpedite Systems Limited ("XSL"), its United Kingdom affiliate, as though such
transaction occurred effective January 1, 1996. The unaudited pro forma
condensed combined balance sheet also gives effect to the acquisition of XSL as
though the transaction occurred September 30, 1997. These companies entered into
a definitive agreement on August 8, 1997 under which Xpedite paid approximately
$85.5 million in cash to acquire XSL. The XSL Acquisition will be accounted for
under the purchase method of accounting. The historical financial statements of
XSL are presented herein on a basis consistent with generally accepted
accounting principles of the United States.
In addition, the unaudited pro forma condensed combined financial
information gives effect to the Company's acquisition of TeleT on September 18,
1996 as though the transaction occurred January 1, 1996. The Company exchanged
498,187 shares of its common stock and paid approximately $2.8 million in cash
for TeleT. This acquisition has been accounted for under the purchase method of
accounting.
The number of pro forma weighted average common shares and common share
equivalents used to compute pro forma net income per share reflects the
aggregate of the weighted average outstanding shares or owners' interests in
Xpedite, adjusted to equivalent shares of the Company for all periods presented.
Certain balance sheet and income statement amounts in the pro forma
financial information of Xpedite have been reclassified to conform with the
unaudited pro forma combined financial information presentation and disclosure
practices of Premiere.
The unaudited pro forma condensed combined financial information is
presented for illustrative purposes only and is not necessarily indicative of
the financial position or results of operations that would have actually been
reported had the acquisitions of Xpedite and XSL occurred at the beginning of
the periods presented nor is it indicative of future financial position or
results of operations. The unaudited pro forma combined financial information is
based on the respective historical financial statements for Premiere, TeleT,
Xpedite and XSL and should be read in conjunction with the respective historical
financial statements incorporated by reference herein.
<PAGE>
PREMIERE TECHNOLOGIES, INC. AND SUBSIDIARIES
PRO FORMA CONDENSED COMBINED BALANCE SHEET
AS OF SEPTEMBER 30, 1997
UNAUDITED
(In thousands)
<TABLE>
<CAPTION>
XPEDITE
----------------------------------------------- PRO FORMA
PRO FORMA ADJUSTMENTS PRO FORMA
HISTORICAL ADJUSTMENTS PRO FORMA PREMIERE/ PREMIERE/
HISTORICAL ------------------- XSL XSL XPEDITE XPEDITE
PREMIERE XPEDITE XSL ACQUISITION ACQUISITION MERGER MERGER
---------- -------- -------- ----------- ----------- ----------- ---------
<S> <C> <C> <C> <C> <C> <C> <C>
Assets:
Current Assets:
Cash, cash equivalents
and investments...................... $183,838 $ 3,857 $ 191 $ - $ 4,048 $ - $187,886
Accounts receivable.................... 14,142 29,711 8,635 (622)E 37,724 51,866
Deferred taxes, net.................... 14,146 1,904 - - 1,904 - 16,050
Prepaid expenses and other -
current assets....................... 9,053 3,715 - - 3,715 - 12,768
-------- ------- ------- ------- -------- ------- --------
Total current assets................... 221,179 39,187 8,826 (622) 47,391 - 268,570
-------- ------- ------- ------- -------- ------- --------
Property and equipment, net.............. 49,121 22,838 4,690 - 27,528 2,536 C 79,185
Deferred taxes, net...................... 7,535 1,880 - - 1,880 - 9,415
Strategic alliance contract
intangible, net........................ 28,898 - - - - 28,898
Goodwill................................. 17,488 9,686 11,139 66,133 F 86,958 - 104,446
Other assets............................. 26,674 20,326 - 3,000 H 23,845 (2,536)C 47,983
(981)I
1,500 J
-------- ------- ------- ------- -------- ------- --------
Total Assets:............................ $350,895 $93,917 $24,655 $69,030 $187,602 $ - $538,497
======== ======= ======= ======= ======== ======= ========
Liabilities and Shareholders' Equity:
Current liabilities:
Current portion of long term debt...... $ 7,157 $ 6,554 $ - $(6,050)K $ 504 $ - $ 7,661
Accounts payable & accrued expenses.... 49,252 25,835 8,610 (622)E 32,571 - 81,823
(1,252)K
Accrued restructuring and other
special charges...................... 33,855 - - - - 34,000 D 67,855
-------- ------- ------- ------- ------- ------- --------
Total current liabilities.............. 90,264 32,389 8,610 (7,924) 33,075 34,000 157,339
-------- ------- ------- ------- ------- ------- --------
Long term Liabilities:
Long term debt......................... 5,587 22,822 1,002 (22,500)K 115,872 121,459
(1,002)K
115,550 J
Convertible subordinated notes, net.... 167,107 - - - - - 167,107
Deferred taxes, net.................... - 3,591 - 930 L 4,521 - 4,521
Other accrued liabilities.............. 9,777 783 9,518 (9,518)K 783 - 10,560
-------- ------- ------- ------- ------- ------- --------
Total long-term liabilities............ 182,471 27,196 10,520 83,460 121,176 - 303,647
-------- ------- ------- ------- ------- ------- --------
Shareholders' Equity:
Common stock........................... 323 91 501 (501)M 91 23 A 437
Preferred stock........................ - - 8,108 (8,108)K - - -
Additional paid in capital............. 161,007 65,672 - - 65,672 (239)A 226,440
Treasury stock......................... - (216) - - (216) 216 A -
Cumulative translation adjustment...... 52 (1,321) - - (1,321) - (1,269)
Accumulated deficit.................... (83,222) (29,894) (3,084) 3,084 M (30,875) (34,000)D (148,097)
(981)I
-------- ------- ------- ------- ------- ------- --------
Total equity............................. 78,160 34,332 5,525 (6,506) 33,351 (34,000) 77,511
-------- ------- ------- ------- ------- ------- --------
Total liabilities and
shareholders' equity................... $350,895 $93,917 $24,655 $69,030 $187,602 $ - $538,497
======== ======= ======= ======= ======== ======= ========
</TABLE>
See Notes to Unaudited Pro Forma Condensed Combined
Financial Statements.
<PAGE>
PREMIERE TECHNOLOGIES, INC. AND SUBSIDIARIES
PRO FORMA CONDENSED COMBINED STATEMENT OF OPERATIONS
FOR THE NINE MONTHS ENDED SEPTEMBER 30, 1997
UNAUDITED
(In thousands except per share amounts)
<TABLE>
<CAPTION>
XPEDITE
------------------------------------------------ PRO FORMA
PRO FORMA ADJUSTMENTS PRO FORMA
HISTORICAL ADJUSTMENTS PRO FORMA PREMIERE/ PREMIERE/
HISTORICAL -------------------- XSL XSL XPEDITE XPEDITE
PREMIERE XPEDITE XSL ACQUISITION ACQUISITION MERGER MERGER
--------- ---------- -------- ----------- ----------- ----------- ---------
<S> <C> <C> <C> <C> <C> <C> <C>
Revenues................................... $167,364 $122,383 $24,237 $(1,188)N $143,934 $ - $311,298
(1,498)O
Cost of services........................... 45,020 58,773 9,697 (1,188)N 65,819 (14,442)C 96,397
(1,463)O
-------- -------- ------- ------- -------- ------- --------
Gross margin............................... 122,344 63,610 14,540 (35) 78,115 14,442 214,901
Operating expenses: -------- -------- ------- ------- -------- ------- --------
Selling, general and administrative...... 78,367 38,449 3,096 - 41,545 13,774 C 133,686
Depreciation and amortization............ 12,822 7,390 1,789 281 P 9,825 668 C 23,315
382 Q
161 S
(178)R
Restructuring and other special charges.. 73,597 - - - - - 73,597
Accrued settlement costs................. 1,500 - - - - - 1,500
-------- -------- ------- ------- -------- ------- --------
Total operating expenses................. 166,286 45,839 4,885 646 51,370 14,442 232,098
-------- -------- ------- ------- -------- ------- --------
Operating income (loss).................... (43,942) 17,771 9,655 (681) 26,745 - (17,197)
Other income (expense):
Interest, net............................ (61) (1,839) (265) 2,447 S (7,023) - (7,084)
(7,366)R
Other, net............................... 186 56 - - 56 - 242
-------- -------- ------- ------- -------- ------- --------
Net income (loss) before income taxes...... (43,817) 15,988 9,390 (5,600) 19,778 - (24,039)
Provision (benefit) for income taxes....... (9,273) 6,393 3,169 (1,863)T 7,699 (1,574)
-------- -------- ------- ------- -------- ------- --------
Net income (loss).......................... $(34,544) $ 9,595 $ 6,221 $(3,737) $ 12,079 $ - $(22,465)
======== ======== ======= ======= ======== ======= ========
Net income (loss) attributable to common
shareholders for primary net income (loss)
per share................................ $(34,544) $ 9,595 $ 12,079 $(22,465)
======== ======== ======== ======= ========
Net income (loss) attributable to common
shareholders for primary net income (loss) per
share.................................... $ (1.10)(1)$ 1.03 $ 1.29 $ (0.52)(1)
======== ======== ======== ======= ========
Shares used in computing net income (loss)
per common and common equivalent shares
for primary.............................. 31,518 9,359 9,359 1,977 B 42,854
======== ======== ======== ======= =========
____________
(1) For the nine months ended September 30, 1997, net income (loss)per share was not
calculated under the modified treasury stock method as the results were
antidilutive. Accordingly, basic net income (loss) per share was used for the nine
months ended September 30, 1997.
</TABLE>
See Notes to Unaudited Pro Forma Condensed Combined
Financial Statements.
<PAGE>
PREMIERE TECHNOLOGIES, INC. AND SUBSIDIARIES
PRO FORMA CONDENSED COMBINED STATEMENT OF OPERATIONS
FOR THE YEAR ENDED DECEMBER 31, 1996
UNAUDITED
(In thousands except per share amounts)
<TABLE>
<CAPTION>
PREMIERE XPEDITE
-------------------------------------------------- ----------------------
(1) (2) PRO FORMA HISTORICAL
HISTORICAL HISTORICAL ADJUSTMENTS PRO FORMA ----------------------
PREMIERE TELET TELET PREMIERE XPEDITE XSL
---------- ---------- ----------- -------- ---------- ---------
<S> <C> <C> <C> <C> <C> <C>
Revenues...................................... $197,474 $ 251 $ - $197,725 $129,847 $25,599
Cost of services.............................. 55,601 - - 55,601 59,977 14,081
-------- ------ -------- -------- -------- -------
Gross margin.................................. 141,873 251 - 142,124 69,870 11,518
-------- ------ -------- -------- -------- -------
Operating expenses:
Selling, general and administrative......... 108,544 885 109,429 41,797 3,374
Depreciation and amortization............... 14,184 - 54 U 14,238 7,620 2,043
Write off of in-process research
and development costs..................... 11,030 - (11,030)V - - -
Accrued settlement costs.................... 1,250 - - 1,250 - -
-------- ------ -------- -------- -------- -------
Total operating expenses.................... 135,008 885 (10,976) 124,917 49,417 5,417
-------- ------ -------- -------- -------- -------
Operating income (loss)....................... 6,865 (634) 10,976 17,207 20,453 6,101
Other income (expense):
Interest, net............................... (1,690) - (112)W (1,802) (3,155) (696)
Other, net.................................. (286) (13) - (299) 254 -
-------- ------ -------- -------- -------- -------
Net income (loss) before income taxes......... 4,889 (647) 10,864 15,106 17,552 5,405
Provision (benefit) for income taxes.......... 1,372 (252) 4,236 X 5,356 7,119 1,401
-------- ------ -------- -------- -------- -------
Net income (loss)............................. $ 3,517 $ (395) $ 6,628 $ 9,750 $ 10,433 $ 4,004
======== ====== ======== ======== ======== =======
Net income attributable
to common shareholders for primary
net income per share........................ $ 3,488 (3) $ 9,721 $ 10,433
======== ======== ========
Net income attributable
to common shareholders for primary
net income per share........................ $ 0.12 (5) $ 0.33 (5)$ 1.20
======== ======== ========
Shares used in computing net income
per common and common equivalent
shares for primary.......................... 29,213 498 Y 29,711 8,716
======== ======== ======== ========
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
------------------------------
PRO FORMA PRO FORMA
ADJUSTMENTS PRO FORMA ADJUSTMENTS PRO FORMA
XSL XSL PREMIERE/XPEDITE PREMIERE/XPEDITE
ACQUISITION ACQUISITION MERGER MERGER
------------ ------------ --------------- ----------------
<S> <C> <C> <C> <C>
Revenues...................................... $ (2,012)N $150,783 $ - $348,508
(2,651)O
Cost of services.............................. (2,012)N 69,940 (17,946)C 107,595
(2,106)O
-------- -------- -------- --------
Gross margin.................................. (545) 80,843 17,946 240,913
-------- -------- -------- --------
Operating expenses:
Selling, general and administrative......... - 45,171 17,128 C 171,728
Depreciation and amortization............... 375 P 10,656 818 C 25,712
638 Q
214 S
(234)R
Write off of in-process research
and development costs..................... - - - -
Accrued settlement costs.................... - - - 1,250
-------- -------- -------- --------
Total operating expenses.................... 993 55,827 17,946 198,690
-------- -------- -------- --------
Operating income (loss)....................... (1,538) 25,016 - 42,223
Other income (expense):
Interest, net............................... 4,377 S (9,296) - (11,098)
(9,822)R
Other, net.................................. - 254 - (45)
-------- -------- -------- --------
Net income (loss) before income taxes......... (6,983) 15,974 - 31,080
Provision (benefit) for income taxes.......... (2,217)T 6,303 - 11,659
-------- -------- -------- --------
Net income (loss)............................. $ (4,766) $ 9,671 $ - $ 19,421
======== ======== ======== ========
Net income attributable
to common shareholders for primary
net income per share........................ $ 9,671 $ 19,392 (4)
======== ========
Net income attributable
to common shareholders for primary
net income per share......................... $ 1.11 $ 0.50 (6)
======== ========
Shares used in computing net income
per common and common equivalent
shares for primary.......................... 8,716 579 B 39,006
======== ======== ========
</TABLE>
- -----------------
(1) Excludes effect of extraordinary loss of $59, net of tax effect.
(2) Derived from the historical statements of operations of the Company and
Connect, Inc. (incorporated by reference herein), Leitess Information
Solutions LLC and Planet Communications LLC (collectively, "TeleT
Communications LLC").
(3) Amount includes preferred dividends of $29 assumed under the modified
treasury stock method.
(4) Amount includes preferred dividends of $29.
(5) Fully diluted net income per share is antidilutive. Accordingly,
fully diluted net income per share is not presented.
(6) Net income per share was not calculated under the modified treasury stock
method as the results were antidilutive. Accordingly, basic net income per
share was used.
See Notes to Unaudited Pro Forma Condensed Combined
Financial Statements.
<PAGE>
PREMIERE TECHNOLOGIES, INC. AND SUBSIDIARIES
PRO FORMA CONDENSED COMBINED STATEMENT OF OPERATIONS
FOR THE YEAR ENDED DECEMBER 31, 1995
UNAUDITED
(In thousands except per share amounts)
<TABLE>
<CAPTION>
PRO FORMA
ADJUSTMENTS PRO FORMA
HISTORICAL HISTORICAL PREMIERE/XPEDITE PREMIERE/XPEDITE
PREMIERE XPEDITE MERGER MERGER
---------- ---------- ---------------- ----------------
<S> <C> <C> <C> <C>
Revenues.................................................. $147,543 $ 55,684 $ - $203,227
Cost of services.......................................... 43,868 21,602 (6,192)C 59,278
-------- -------- ------- --------
Gross margin.............................................. 103,675 34,082 6,192 143,949
-------- -------- ------- --------
Operating expenses:
Selling, general and administrative..................... 83,719 22,437 5,854 C 112,010
Depreciation and amortization........................... 10,453 2,724 338 C 13,515
Write off of in-process research and development costs.. - 53,000 - 53,000
Accrued settlement costs................................ 2,500 - - 2,500
-------- -------- ------- --------
Total operating expenses................................ 96,672 78,161 6,192 181,025
-------- -------- ------- --------
Operating income (loss)................................... 7,003 (44,079) - (37,076)
Other income (expense):
Interest, net........................................... (4,323) 234 - (4,089)
Other, net.............................................. 1,506 23 - 1,529
-------- -------- ------- --------
Net income (loss) before income taxes..................... 4,186 (43,822) - (39,636)
Provision for income taxes................................ 15 2,740 - 2,755
-------- -------- ------- --------
Net income (loss)......................................... $ 4,171 $(46,562) $ - $(42,391)
======== ======== ======= ========
Net income (loss) attributable to common
shareholders for primary net income per share........... $ 4,222 (1) $(46,562) $(42,699)(3)
======== ======== ========
Net income (loss) attributable to common
shareholders for fully diluted net income per share..... $ 4,541 (2) $ - $ - (4)
======== ======== ========
Net income (loss) per common and common equivalent shares
for primary shares...................................... $ 0.15 $ (6.67) $ (1.37)(4)
======== ======== ========
Net income (loss) per common and common equivalent shares
for fully diluted shares............................... $ 0.14 $ - $ - (4)
======== ======== ========
Shares used in computing net income (loss) per common and
common equivalent shares for primary.................... 28,718 6,982 4,087 B 31,204
======== ======== ======= ========
Shares used in computing net income (loss) per common and
common equivalent shares for fully diluted................ 31,814 - - (4)
======== ======== ========
- --------------------
(1) Amount includes preferred dividends of $308 and net interest expense reduction of $359 under the modified treasury stock
method.
(2) Amount includes interest expense reduction of $370 under the modified treasury
stock method.
(3) Amount includes preferred dividends of $308.
(4) Net income (loss) per share was not calculated under the modified treasury stock method as the results were antidilutive.
Accordingly, basic net income (loss) per share was used.
See Notes to Unaudited Pro Forma Condensed Combined Financial Statements.
</TABLE>
<PAGE>
PREMIERE TECHNOLOGIES, INC. AND SUBSIDIARIES
PRO FORMA CONDENSED COMBINED STATEMENT OF OPERATIONS
FOR THE YEAR ENDED DECEMBER 31, 1994
UNAUDITED
(In thousands except per share amounts)
<TABLE>
<CAPTION>
PRO FORMA
(2) ADJUSTMENTS PRO FORMA
HISTORICAL HISTORICAL PREMIERE/XPEDITE PREMIERE/XPEDITE
PREMIERE XPEDITE MERGER MERGER
---------- ---------- ---------------- ----------------
<S> <C> <C> <C> <C>
Revenues...................................................... $119,136 $41,429 $ - $160,565
Cost of services.............................................. 33,907 16,992 (4,607)C 46,292
-------- ------- ------- --------
Gross margin.................................................. 85,229 24,437 4,607 114,273
-------- ------- ------- --------
Operating expenses:
Selling, general and administrative......................... 82,208 16,761 4,365 C 103,334
Depreciation and amortization............................... 9,598 1,432 242 C 11,272
Restructuring and other special charges..................... 6,655 - - 6,655
-------- ------- ------- --------
Total operating expenses.................................... 98,461 18,193 4,607 121,261
-------- ------- ------- --------
Operating income (loss)....................................... (13,232) 6,244 - (6,988)
Other income (expense):
Interest, net............................................... (4,386) 434 - (3,952)
Other, net.................................................. 245 - - 245
-------- ------- ------- --------
Net income (loss) before income taxes......................... (17,373) 6,678 - (10,695)
Provision (benefit) for income taxes.......................... (909) 1,950 - 1,041
-------- ------- ------- --------
Net income (loss)............................................. $(16,464) 4,728 - (11,736)
======== ======= ======= ========
Net income (loss) attributable to common
shareholders for primary net income (loss) per share........ $(16,784)(1) $4,728 $(12,056)(1)
======== ======= ========
Net income (loss) attributable to common
shareholders for primary net income (loss) per share........ $ (1.25)(3) $ .71 $ (0.49)(3)
======== ======= ========
Shares used in computing net income (loss)
per common and common equivalent shares for primary......... 13,468 6,600 4,736 B 24,804
======== ======= ======= ========
</TABLE>
- ------------
(1) Amount includes preferred dividends of $320.
(2) Excludes effect of extraordinary gain of $(945), net of tax effect.
(3) For the year ended December 31, 1994, net income (loss) per share was not
calculated under the modified treasury stock method as the results were
antidilutive. Accordingly, basic net income (loss) per share was used for
the year ended December 31, 1994.
See Notes to Unaudited Pro Forma Condensed Combined
Financial Statments.
<PAGE>
PREMIERE TECHNOLOGIES, INC. AND SUBSIDIARIES
NOTES TO UNAUDITED PRO FORMA CONDENSED COMBINED
FINANCIAL STATEMENTS
Pro Forma Adjustments - The Merger
Pro Forma Adjustments have been made to:
(A) Reflect the issuance of shares of Premiere common stock in exchange for all
of the outstanding Xpedite common stock.
(B) Give effect to additional shares of Premiere common stock issued to Xpedite
stockholders in connection with the Merger as though such shares were
issued January 1, 1994.
(C) Conform Xpedite to accounting policies followed by Premiere.
(D) Reflect transaction expected and restructuring and related costs (including
severance costs, charges for asset impairment and closing certain
facilities) expected to be incurred in connection with the Premiere/Xpedite
merger. Such costs, which will be incurred by both Premiere and Xpedite,
are reflected as an increase in accumulated deficit and accrued liabilities
net of income tax effects. The amount reflects a current estimate based on
available information and may vary from the amounts ultimately incurred.
Pro Forma Adjustments - XSL Acquisition.
A preliminary allocation of the purchase price of XSL is presented in the pro
forma condensed combined financial statements. A final allocation of the
purchase price to the XSL assets acquired and liabilties assumed is dependent
upon certain valuations and studies which will be performed at a future date.
While management believes that consideration in excess of the historical book
value of XSL's assets and liabilities will be primarily comprised of goodwill,
such amount may be allocated to certain research and development projects and
other intangible assets. To the extent a portion of the purchase price is
allocated to research and development projects for which technological
feasibility has not been established, a charge, which may be material to the
combined operations of Premiere and Xpedite, will be recorded in a period
subsequent to the merger of these companies. Pro forma adjustments necessary to
reflect the XSL Acquisition as though such transaction occurred effective
January 1, 1996 have been made to:
(E) To eliminate amounts due from XSL to Xpedite.
(F) To record costs in excess of fair value of net assets of XSL.
(G) To record payment of $85.5 million cash consideration paid at closing of the
XSL Acquisition and related fees.
(H) To record the estimated fair value of XSL customer list.
(I) To eliminate debt issue costs on existing Xpedite debt.
(J) To record acquisition financing, refinancing of Xpedite's existing credit
facility and related debt issuance costs.
(K) To record refinancing of Xpedite's existing credit facility and the
elimination of existing XSL debt, preferred stock and related accrued
dividends which were not assumed.
(L) To record a deferred tax liability related to the difference in basis in
tax and financial reporting purposes for customer lists acquired from
XSL.
(M) To record the elimination of the existing common shareholders stock and
retained earnings of XSL as a result of the acquisition of XSL by Xpedite
which is accounted for under the purchase method of accounting.
(N) To eliminate telecommunications costs incurred by Xpedite and XSL
delivered on behalf of each.
(O) To eliminate system sales from the Xpedite to XSL and royalty revenue
from Xpedite charged to XSL.
(P) To record amortization related to the estimated fair value of the
customer list of XSL assuming an eight year useful life.
(Q) To record amortization of costs in excess of fair value of net assets
acquired of XSL assuming a 40 year useful life.
(R) To record interest and amortization of debt issuance costs related to the
acquistion financing and the refinancing of Xpedite's existing credit
facility.
(S) To eliminate historical interest expense and related amortization of debt
costs on existing Xpedite and XSL debt to be refinanced in connection with
the XSL Acquisition. The pro forma condensed combined statements of
operations do not include an extraordinary charge of approximately $1.0
million related to unamortized debt issue costs which will be written off
upon the repayment of existing indebtedness.
(T) To record the tax effect on all adjustments.
Pro Forma Statement of Income Adjustments - TeleT
Pro forma adjustments necessary to reflect the purchase of TeleT as though
such transaction occurred effective January 1, 1996 have been made to:
(U) Reflect additional depreciation and amortization expense associated with
the increase in the basis of the acquired assets to fair market value at
the date of acquisition.
(V) Reverse the nonrecurring charge for in process research and development.
(W) Reflect reduction in interest income resulting from cash paid in
acquisition.
(X) Reflect income tax effect of pro forma adjustments.
(Y) Give effect to additional shares issued in connection with the acquisition
as though such shares were issued January 1, 1996.
