<PAGE>
- -------------------------------------------------------------------------------
- -------------------------------------------------------------------------------
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
-------------------
FORM 8-K/A
AMENDMENT NO. 2
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the Securities
Exchange Act of 1934
-------------------
JANUARY 16, 1996
(Date of report)
PITTENCRIEFF COMMUNICATIONS, INC.
(Exact name of registrant as specified in its charter)
DELAWARE 0-21840 75-2609476
(State or other (Commission (I.R.S. employer
jurisdiction of file number) identification
incorporation or no.)
organization)
1 VILLAGE DRIVE
SUITE 500
ABILENE, TEXAS 79606
(Address of principal executive offices)
(915) 690-5800
(Registrant's telephone number,
including area code)
- -------------------------------------------------------------------------------
- -------------------------------------------------------------------------------
<PAGE>
ITEM 7. FINANCIAL STATEMENTS AND EXHIBITS.
(b) Pro forma financial information.
Unaudited pro forma condensed consolidated financial
statements that reflect the business acquired pursuant to Article 11 of
Regulation S-X are listed on page F-1 and included as part of this Report
beginning on page F-98 hereof.
2
<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.
PITTENCRIEFF COMMUNICATIONS, INC.
Dated: July 5, 1996 By: /s/ C.G. WHITTEN
---------------------------------
C.G. Whitten,
Senior Vice President, General
Counsel, and Secretary
3
<PAGE>
INDEX TO FINANCIAL STATEMENTS
<TABLE>
<S> <C>
A&D Mobile Systems, Inc.:
Report of Independent Accountants . . . . . . . . . . . . . . . . . . . . . . F-3
Balance Sheets as of December 31, 1993 (unaudited), 1994 and 1995 . . . . . . F-4
Statements of Operations for the years ended December 31, 1993 (unaudited),
1994 and 1995 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . F-5
Statements of Changes in Stockholders' Equity (Deficit) for the years ended
December 31, 1993 (unaudited), 1994 and 1995. . . . . . . . . . . . . . . . F-6
Statements of Cash Flows for the years ended December 31, 1993 (unaudited),
1994 and 1995 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . F-7
Notes to Financial Statements . . . . . . . . . . . . . . . . . . . . . . . . F-8
Advanced MobileComm of San Diego:
Report of Independent Accountants . . . . . . . . . . . . . . . . . . . . . . F-12
Balance Sheets as of December 31, 1993 (unaudited), 1994 and 1995 . . . . . . F-13
Statements of Operations for the period of inception (October 8, 1993) to
December 31, 1993 (unaudited) and the years ended December 31, 1994
and 1995 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . F-14
Statements of Equity (Deficit) for the period of inception (October 8, 1993)
to December 31, 1993 (unaudited) and the years ended December 31, 1994
and 1995. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . F-15
Statements of Cash Flows for the years ended December 31, 1993 (unaudited),
1994 and 1995 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . F-16
Notes to Financial Statements . . . . . . . . . . . . . . . . . . . . . . . . F-17
Advanced MobileComm Southwest Corp.:
Report of Independent Accountants . . . . . . . . . . . . . . . . . . . . . . F-21
Consolidated Balance Sheets as of December 31, 1993, 1994 and 1995. . . . . . F-22
Consolidated Statements of Operations for the period of inception
(September 21, 1993) to December 31, 1993 and for the years ended
December 31, 1994 and 1995. . . . . . . . . . . . . . . . . . . . . . . . . F-23
Consolidated Statements of Stockholders' Equity for the period of inception
(September 21, 1993) to December 31, 1993 and for the years ended
December 31, 1994 and 1995. . . . . . . . . . . . . . . . . . . . . . . . . F-24
Consolidated Statements of Cash Flows for the period of inception
(September 21, 1993) to December 31, 1993 and for the years ended
December 31, 1994 and 1995 . . . . . . . . . . . . . . . . . . . . . . . . F-25
Notes to Financial Statements . . . . . . . . . . . . . . . . . . . . . . . . F-26
Bayou Communications, Inc.:
Report of Independent Accountants . . . . . . . . . . . . . . . . . . . . . . F-32
Balance Sheets as of December 31, 1993, 1994 and 1995 . . . . . . . . . . . . F-33
Statements of Operations for the years ended December 31, 1993, 1994 and
1995. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . F-34
Statements of Stockholders' Equity for the years ended December 31, 1993,
1994 and 1995 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . F-35
Statements of Cash Flows for the years ended December 31, 1993, 1994 and
1995 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . F-36
Notes to Financial Statements . . . . . . . . . . . . . . . . . . . . . . . . F-37
Confidential Communications Corporation:
Report of Independent Accountants . . . . . . . . . . . . . . . . . . . . . . F-41
Balance Sheets as of December 31, 1993, 1994 and 1995 . . . . . . . . . . . . F-42
Statements of Operations for the years ended December 31, 1993, 1994 and
1995. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . F-43
Statements of Stockholders' Equity (Deficit) for the years ended December
31, 1993, 1994 and 1995 . . . . . . . . . . . . . . . . . . . . . . . . . . F-44
Statements of Cash Flows for the years ended December 31, 1993, 1994 and
1995. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . F-45
Notes to Financial Statements . . . . . . . . . . . . . . . . . . . . . . . . F-46
Viking Amusement Corporation (d/b/a Empire Mobile Communications):
Report of Independent Accountants . . . . . . . . . . . . . . . . . . . . . . F-50
Balance Sheets as of December 31, 1993, 1994 and 1995 . . . . . . . . . . . . F-51
Statements of Operations for the years ended December 31, 1993, 1994 and
1995. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . F-52
</TABLE>
F-1
<PAGE>
<TABLE>
<S> <C>
Statements of Stockholders' Equity for the years ended December 31, 1993,
1994 and 1995 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . F-53
Statements of Cash Flows for the years ended December 31, 1993, 1994 and
1995. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . F-54
Notes to Financial Statements . . . . . . . . . . . . . . . . . . . . . . . . F-55
FFC Communications, Inc.:
Report of Independent Accountants . . . . . . . . . . . . . . . . . . . . . . F-60
Balance Sheets as of December 31, 1993 (unaudited), 1994 and 1995 . . . . . . F-61
Statements of Operations for the years ended December 31, 1993 (unaudited),
1994 and 1995 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . F-62
Statements of Stockholders' Equity for the years ended December 31, 1993
(unaudited), 1994 and 1995 (unaudited). . . . . . . . . . . . . . . . . . . F-63
Statements of Cash Flows for the years ended December 31, 1993 (unaudited),
1994 and 1995 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . F-64
Notes to Financial Statements . . . . . . . . . . . . . . . . . . . . . . . . F-65
Metroplex Mobile Communications, Inc.:
Report of Independent Accountants . . . . . . . . . . . . . . . . . . . . . . F-68
Consolidated Balance Sheets as of December 31, 1993 (unaudited), 1994 and
1995. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . F-69
Consolidated Statements of Operations for the years ended December 31, 1993
(unaudited), 1994 and 1995. . . . . . . . . . . . . . . . . . . . . . . . . F-70
Consolidated Statements of Changes in Stockholders' Equity for the years
ended December 31, 1993 (unaudited), 1994 and 1995 . . . . . . . . . . . . F-71
Consolidated Statements of Cash Flows for the years ended December 31, 1993
(unaudited) 1994 and 1995 . . . . . . . . . . . . . . . . . . . . . . . . . F-72
Notes to Financial Statements . . . . . . . . . . . . . . . . . . . . . . . . F-73
Mobitel Communications Group:
Report of Independent Accountants . . . . . . . . . . . . . . . . . . . . . . F-80
Combined Balance Sheets as of December 31, 1993 (unaudited), 1994 and 1995. . F-81
Combined Statements of Operations for the years ended December 31, 1993
(unaudited), 1994 and 1995 . . . . . . . . . . . . . . . . . . . . . . . . F-82
Combined Statements of Changes in Stockholders' and Owners' Equity
(Deficit) for the years ended December 31, 1993 (unaudited), 1994
and 1995. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . F-83
Combined Statements of Cash Flows for the years ended December 31, 1993
(unaudited), 1994 and 1995 . . . . . . . . . . . . . . . . . . . . . . . . F-84
Notes to Financial Statements . . . . . . . . . . . . . . . . . . . . . . . . F-85
Trunked Mobile Radio Systems:
Report of Independent Accountants . . . . . . . . . . . . . . . . . . . . . . F-89
Balance Sheets as of December 31, 1993 (unaudited), 1994 and 1995 . . . . . . F-90
Statements of Operations for the years ended December 31, 1993 (unaudited),
1994 and 1995 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . F-91
Statements of Changes in Partners' Capital for the years ended December 31,
1993 (unaudited), 1994 and 1995 . . . . . . . . . . . . . . . . . . . . . . F-92
Statements of Cash Flows for the years ended December 31, 1993 (unaudited),
1994 and 1995 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . F-93
Notes to Financial Statements . . . . . . . . . . . . . . . . . . . . . . . . F-94
Unaudited Pro Forma Condensed Consolidated Financial Statements. . . . . . . . . . F-98
Pro Forma Condensed Consolidated Balance Sheet as of December 31, 1995. . . . F-100
Notes to Pro Forma Condensed Consolidated Balance Sheet . . . . . . . . . . . F-101
Pro Forma Condensed Consolidated Statement of Operations for the year
ended December 31, 1995 . . . . . . . . . . . . . . . . . . . . . . . . . . F-102
Historical by Entity for the Transaction Statement of Operations for the
year ended December 31, 1995. . . . . . . . . . . . . . . . . . . . . . . . F-103
Notes to Pro Forma Condensed Consolidated Statement of Operations . . . . . . F-104
</TABLE>
F-2
<PAGE>
UNAUDITED PRO FORMA CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
The following pro forma condensed consolidated financial statements of the
Company are based on the Company's historical consolidated financial statements,
as adjusted to give effect (i) to the acquisition of substantially all of the
specialized mobile radio ("SMR") operations of Advanced MobileComm, Inc. and a
number of related and unrelated companies and owners (the "Transaction") in
exchange for 11,909,842 shares (the "Contribution Shares") of the Company's
Common Stock, $.01 par value ("PCI Common Stock"), (ii) a bridge financing
facility ("Bridge Facility"), (iii) all of the Company's acquisitions of SMR
assets completed since January 1, 1995, (collectively, the "Acquisitions"), (iv)
the Company's sale and subsequent leaseback of 125 communications towers (the
"Tower Sale"), and (v) the Company's sale of its Nevada SMR assets (the "Nevada
Sale") (the Bridge Facility, the Acquisitions, the Tower Sale, and the Nevada
Sale are collectively referred to herein as the "Pre-AMI Events"). The pro
forma condensed consolidated statement of operations for the year ended December
31, 1995, gives effect to the Transaction and the Pre-AMI Events as if they had
occurred at the beginning of 1995. The pro forma condensed consolidated balance
sheet gives effect to the Transaction as if it had occurred on December 31,
1995. The pro forma adjustments are based upon available information and
certain assumptions that the Company believes are reasonable. The pro forma
financial statements do not purport to represent what the Company's results of
operations or financial position would actually have been had the Transaction
and the Pre-AMI Events in fact occurred at or on such dates, or to project the
Company's results of operations for any future period or financial position at
any future date.
For purposes of presenting pro forma results, no changes in revenues or
expenses have been made to reflect the result of any modification to operations
not directly attributable to the Transaction or the Pre-AMI Events. The pro
forma adjustments for expenses directly attributable to the Transaction and the
Pre-AMI Event include changes in interest expense due to a revised capital
structure, changes in depreciation and amortization expenses resulting from the
allocation of the purchase cost, the elimination of certain historical
nonrecurring expenses and the tax effects related to the adjustments.
The corporations acquired in the Transaction and the sellers from which
assets were purchased in the Transaction are as follows:
<TABLE>
<CAPTION>
Corporation Asset Seller
----------- ------------
<S> <C>
A&D Mobile Systems, Inc. ("A&D Mobile") Advanced MobileComm of San Diego ("San Diego")
Advanced MobileComm Southwest Corp. ("Southwest") Royce Witte d/b/a Mobitel Communications
Services (included as part of Mobitel)
Bayou Communications, Inc. ("Bayou") Royce Witte d/b/a Range Unlimited (included as part of Mobitel)
Confidential Communications Trunked Mobile Radio Systems ("Trunked")
Corporation ("Confidential")
D&E Communications, Inc. (included
as part of Mobitel Communications
Group ("Mobitel"))
FFC Communications, Inc. ("FFC")
Metroplex Mobile Communications,
Inc. ("Metroplex")
Viking Amusement Corporation d/b/a
Empire Mobile Communications
("Empire")
</TABLE>
F-98
<PAGE>
The pro forma information with respect to the Acquisitions is based on the
historical financial statements of the SMR businesses or assets acquired as
listed below. The Acquisitions have been accounted for under the purchase
method of accounting. The total purchase price for the Acquisitions has been
allocated to the tangible and identifiable intangible assets and liabilities of
the acquired companies based upon the Company's preliminary estimates of their
fair value with the remainder, if any, allocated to goodwill. The allocation of
purchase price for the Acquisitions is subject to revision when additional
information concerning asset and liability valuations is obtained. In the
opinion of the Company's management, the asset and liability valuations for the
Acquisitions will not be materially different from the pro forma financial data
presented.
The Acquisitions consist of the following completed acquisitions by the
Company:
SMR Operator Date of Acquisition
------------ -------------------
Bis-Man Mobile Phone, Inc. February 1995
Leischner Electric, Inc. February 1995
F-99
<PAGE>
PITTENCRIEFF COMMUNICATIONS, INC. AND SUBSIDIARIES
PRO FORMA CONDENSED CONSOLIDATED BALANCE SHEET (UNAUDITED)
DECEMBER 31, 1995
(IN THOUSANDS, EXCEPT SHARE DATA)
ASSETS
<TABLE>
<CAPTION>
Pro Forma
Adjustments Pro Forma
for the for the
Historical Transaction Transaction
---------- ----------- -----------
<S> <C> <C> <C>
Current assets:
Cash and cash equivalents ......................... $ 568 -- $ 568
Accounts Receivable:
Trade, net ...................................... 4,337 $ 270(a) 4,607
Employees ....................................... 499 -- 499
Inventories ....................................... 5,680 81(a) 5,761
Deferred income taxes ............................. 248 -- 248
Prepaid expenses and other current assets ......... 1,891 -- 1,891
---------- ---------- ----------
Total current assets .......................... 13,223 351 13,574
Property and equipment, net ....................... 41,207 5,910(a) 47,117
FCC licenses, goodwill and other assets, net ...... 64,708 77,563(a) 142,271
Deferred income taxes ............................. 754 -- 754
Total assets .................................. $ 119,892 $ 83,824 $ 203,716
---------- ---------- ----------
---------- ---------- ----------
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Notes payable .................................... $ 1,532 -- $ 1,532
Current portion of long-term debt ................ 2,276 -- 2,276
Accounts payable ................................. 4,319 $ 38(a) 4,357
Accrued liabilities .............................. 2,379 -- 2,379
---------- ---------- ----------
Total current liabilities ...................... 10,506 38 10,544
---------- ---------- ----------
Long-term debt, excluding current portion .......... 1,083 -- 1,083
Finance obligation, excluding current portion ...... 12,513 -- 12,513
Deferred income taxes .............................. -- 21,259(a) 21,259
Stockholders' equity:
Common stock ..................................... 144 119(b) 263
Additional paid-in capital ....................... 111,413 62,408(b) 173,821
Accumulated deficit .............................. (15,767) -- (15,767)
Treasury stock at cost, 6,366,666 shares -- -- --
Total stockholders' equity ................... 95,790 62,527 158,317
---------- ---------- ----------
Total liabilities and stockholders' equity.... $ 119,892 $ 83,824 $ 203,716
---------- ---------- ----------
---------- ---------- ----------
</TABLE>
See notes to unaudited pro forma condensed consolidated balance sheet.
F-100
<PAGE>
PITTENCRIEFF COMMUNICATIONS, INC. AND SUBSIDIARIES
NOTES TO PRO FORMA CONDENSED CONSOLIDATED
BALANCE SHEET (UNAUDITED)
(a) Represents the allocation of the purchase price for the Transaction to
tangible and identifiable intangible assets acquired, goodwill and related
deferred taxes. The purchase price allocation is based on management's
preliminary estimates, which are subject to adjustment. The Company will
use the purchase method to account for the Transaction. The deferred taxes
are calculated using a combined federal and state statutory tax rate of
37%.
(b) Represents the issuance by the Company of the Contribution Shares in the
Transaction based on a fair market value of $5.25 per share.
F-101
<PAGE>
PITTENCRIEFF COMMUNICATIONS, INC. AND SUBSIDIARIES
PRO FORMA CONDENSED CONSOLIDATED
STATEMENT OF OPERATIONS (UNAUDITED)
YEAR ENDED DECEMBER 31, 1995
(IN THOUSANDS, EXCEPT SHARE DATA)
<TABLE>
<CAPTION>
Historical Pro Forma Adjustments for
------------------------------ ---------------------------
Pro Forma
Pittencrief Adjustments
Communications Completed for Repayment of Nevada
and Subsidiaries Acquisitions(1) Acquisitions Bridge Facility Sale
---------------- -------------- ------------ --------------- -------
<S> <C> <C> <C> <C> <C>
Revenues:
Radio services revenue . . . . . . . . . $ 20,895 $ 118 -- -- $ (51)(g)
Rental income . . . . . . . . . . . . . . 2,708 -- -- -- --
Equipment and parts sales . . . . . . . . 12,454 450 -- -- --
----------- -------- -------- -------- -------
36,057 568 0 0 (51)
----------- -------- -------- -------- -------
Costs and expenses:
Cost of operations . . . . . . . . . . . 17,706 68 -- -- (27)(g)
Cost of equipment and parts sales . . . . 9,923 302 -- -- --
General and administrative . . . . . . . 7,827 108 $ (52)(b) -- --
Depreciation and amortization . . . . . . 7,941 16 -- -- (10)(g)
----------- -------- -------- -------- -------
43,397 494 (52) 0 (37)
----------- -------- -------- -------- -------
Operating income (loss) . . . . . . . . (7,340) 74 52 0 (14)
----------- -------- -------- -------- -------
Other income (expense):
Interest expense . . . . . . . . . . . . . (2,578) -- -- $ 683(f) --
Gain on sale of assets, net . . . . . . . 12 -- -- -- --
Interest income and other . . . . . . . . 506 16 -- -- --
----------- -------- -------- -------- -------
Income (loss) before income taxes . . . (9,400) 90 52 683 (14)
Income tax expense (benefit) . . . . . . . (3,656) 33(h) 19 (e) 253(e) (5)(e)
----------- -------- -------- -------- -------
Net income (loss) . . . . . . . . . . . $ (5,744) $ 57 $ 33 $ 430 $ (9)
----------- -------- -------- -------- -------
----------- -------- -------- -------- -------
Net loss per common share and share
equivalent . . . . . . . . . . . . . . . . $ (0.41)
-----------
Weighted average number of common
and common equivalent shares
outstanding . . . . . . . . . . . . . . . . 14,055
-----------
-----------
Pro Forma
Pro Forma Pro Forma for Pre-AMI
for Historical Adjustments Events and
Pre-AMI for the for the the
Events Transaction Transaction Transaction
-------- ----------- ----------- -----------
<C> <C> <C> <C>
Revenues:
Radio services revenue . . . . . . . . . $ 20,962 $ 2,871 $ 490 (j) $ 24,323
Rental income . . . . . . . . . . . . . . 2,708 25 -- 2,733
Equipment and parts sales . . . . . . . . 12,904 1,095 -- 13,999
--------- --------- -------- ---------
36,574 3,991 490 41,055
--------- --------- -------- ---------
Costs and expenses:
Cost of operations . . . . . . . . . . . 17,747 1,550 (127)(a) 19,170
Cost of equipment and parts sales . . . . 10,225 794 -- 11,019
General and administrative . . . . . . . 7,883 1,872 (1,872)(b) 7,883
Depreciation and amortization . . . . . . 7,947 1,039 1,340 (c) 10,326
--------- --------- -------- ---------
43,802 5,255 (659) 48,398
--------- --------- -------- ---------
Operating income (loss) . . . . . . . . (7,228) (1,264) 1,149 (7,343)
--------- --------- -------- ---------
Other income (expense):
Interest expense . . . . . . . . . . . . . (1,895) (101) 101 (d) (1,895)
Gain on sale of assets, net . . . . . . . 12 3,261 (2) -- 3,273
Interest income and other . . . . . . . . 522 133 -- 655
--------- --------- -------- ---------
Income (loss) before income taxes . . . (8,589) 2,029 1,250 (5,310)
Income tax expense (benefit) . . . . . . . (3,356) 751 (h) 463 (e) (2,142)
--------- --------- -------- ---------
Net income (loss) . . . . . . . . . . . $ (5,233) $ 1,278 $ 787 $ (3,168)
--------- --------- -------- ---------
--------- --------- -------- ---------
Net loss per common share and share
equivalent . . . . . . . . . . . . . . . . $ (0.37) $ (0.12)
--------- ---------
--------- ---------
Weighted average number of common
and common equivalent shares
outstanding . . . . . . . . . . . . . . . . 14,055 11,910 (i) 25,965
--------- ------ ---------
--------- ------ ---------
</TABLE>
(1) Represents the historical operating results from January 1, 1995, through
the respective dates of acquisition of assets of Bis-Man Mobile Phone, Inc.
and Leischner Electric, Inc.
(2) Represents non-recurring gains on the sale of certain FCC licenses.
See notes to unaudited pro forma condensed consolidated statement of operations.
F-102
<PAGE>
PITTENCRIEFF COMMUNICATIONS, INC. AND SUBSIDIARIES
HISTORICAL BY ENTITY FOR THE TRANSACTION
STATEMENT OF OPERATIONS
YEAR ENDED DECEMBER 31, 1995
(IN THOUSANDS)
<TABLE>
<CAPTION>
Empire Bayou Confidential Mobitel Metroplex A&D Mobile FFC San Diego
------ ----- ------------ ------- --------- ---------- --- ---------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
Revenues:
Radio services revenue............... $383 $533 $524 $123 $ 804 $34 $16 $ 92
Rental income........................ -- -- -- -- 25 -- -- --
Equipment and parts sales............ 386 -- -- -- 709 -- -- --
---- ---- ---- ---- ------ --- --- -----
769 533 524 123 1,538 34 16 92
---- ---- ---- ---- ------ --- --- -----
Costs and expenses:
Cost of operations................... 439 339 93 -- 664 -- -- --
Cost of equipment and parts sales.... 294 -- -- -- 500 -- -- --
General and administrative........... 44 21 322 90 395 16 15 3
Depreciation and amortization........ 7 125 16 51 117 19 -- 204
---- ---- ---- ---- ------ --- --- -----
784 485 431 141 1,676 35 15 207
---- ---- ---- ---- ------ --- --- -----
Operating income (loss)............. (15) 48 93 (18) (138) (1) 1 (115)
---- ---- ---- ---- ------ --- --- -----
Other income (expense):
Interest expense...................... -- (25) (2) (21) -- -- -- --
Gain on sale of assets, net........... -- -- -- -- -- -- -- --
Interest income and other............. -- -- -- -- (67) 69 28 --
---- ---- ---- ---- ------ --- --- -----
0 (25) (2) (21) (67) 69 28 0
Income (loss) before income taxes... (15) 23 91 (39) (205) 68 29 (115)
Income tax expense (benefit)........... (6)(h) 9 (h) 34 (b) (14)(h) (76)(h) 25 (h) 11(h) (43)(h)
---- ---- ---- ---- ------ --- --- -----
Net income............................. $ (9) $ 14 $ 57 $(25) $ (129) $43 $18 $ (72)
---- ---- ---- ---- ------ --- --- -----
---- ---- ---- ---- ------ --- --- -----
Trunked Southwest Total
------- --------- -------
<S> <C> <C> <C>
Revenues:
Radio services revenue............... $ 270 $ 92 $ 2,871
Rental income........................ -- -- 25
Equipment and parts sales............ -- -- 1,095
------ ------- -------
270 92 3,991
------ ------- -------
Costs and expenses:
Cost of operations................... 15 -- 1,550
Cost of equipment and parts sales.... -- -- 794
General and administrative........... 274 692 1,872
Depreciation and amortization........ 49 451 1,039
------ ------- -------
338 1,143 5,255
------ ------- -------
Operating income (loss)............. (68) (1,051) (1,264)
------ ------- -------
Other income (expense):
Interest expense...................... (53) -- (101)
Gain on sale of assets, net........... 3,261 -- 3,261
Interest income and other............. -- 103 133
------ ------- -------
3,208 103 3,293
Income (loss) before income taxes... 3,140 (948) 2,029
Income tax expense (benefit)........... 1,162(h) (351)(h) 751
------ ------- -------
Net income............................. $1,978 $ (597) $ 1,278
------ ------- -------
------ ------- -------
</TABLE>
F-103
<PAGE>
PITTENCRIEFF COMMUNICATIONS, INC. AND SUBSIDIARIES
NOTES TO PRO FORMA CONDENSED CONSOLIDATED
STATEMENTS OF OPERATIONS (UNAUDITED)
(a) Elimination of nonrecurring expenses for equipment leases, maintenance,
building rent, salaries, and associated benefits related to acquired
businesses or assets.
(b) Reduction of general and administrative expenses of acquired businesses or
assets as a result of consolidation of functions.
(c) Increase in depreciation and amortization expense relating to increase in
basis of property and equipment, Federal Communications Commission ("FCC")
licenses of acquired businesses, and goodwill resulting from purchase
accounting, net of effect of revised useful lives. Pro forma depreciation
and amortization is calculated using the straight-line method over the
estimated useful lives of the assets acquired. The estimated useful lives
are as follows: FCC licenses and goodwill -- 40 years; buildings and
communications towers -- 30 years; communications equipment -- 5 to 15
years; and other equipment -- 5 to 7 years.
(d) Elimination of interest expense on indebtedness of acquired businesses or
assets not assumed by the Company.
(e) Income tax expense on pro forma adjustments calculated using a combined
federal and state statutory tax rate of 37%, conforming the tax provisions
of acquired entities to Financial Accounting Standards Board Statement 109,
"Accounting for Income Taxes."
(f) Reflects the reversal of interest and amortization of debt issuance costs
and discount related to the Bridge Facility and warrants issued in
connection with the Bridge Facility. Assumes that proceeds from the Tower
Sale and the Nevada Sale were used to repay the Bridge Facility at the
beginning of the period.
(g) Reflects reduction of income and expenses associated with the Nevada Sale.
(h) Pro forma tax effect of the historical results for the entities acquired in
the Transaction and the Acquisitions based on a combined federal and state
statutory tax rate of 37%.
(i) Reflects the issuance of the Contribution Shares.
(j) Reflects the elimination of management fees which will not apply to the
Company.
F-104
