<PAGE> 1
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934
Date of Report (Date of earliest event reported): December 30, 1997
Metrocall, Inc.
---------------
(Exact name of registrant as specified in its charter)
<TABLE>
<S> <C> <C>
Delaware 0-21924 54-1215634
-------- ------- ----------
(State or other jurisdiction (Commission (IRS Employer
of incorporation) file number) Identification No.)
</TABLE>
6677 Richmond Highway, Alexandria, Virginia
-------------------------------------------
(Address of Prinicpal Executive Offices)
Registrant's telephone number, including area code: (703) 660-6677
Not Applicable
----------------------
(Former name or former address, if changed since last report)
1
<PAGE> 2
ITEM 2. ACQUISITIONS OR DISPOSITIONS OF ASSETS
On December 30, 1997, Metrocall, Inc. ("Metrocall" or the "Company")
completed the merger of ProNet Inc. ("ProNet") with and into Metrocall (the
"ProNet Merger"), pursuant to the terms of the Agreement and Plan of Merger
dated August 8, 1997 (the "Merger Agreement"). As a condition to the
consummation of the ProNet Merger, each of Metrocall's and ProNet's
stockholders approved the Merger Agreement, and Metrocall's stockholders
approved an increase in the number of authorized shares of Metrocall common
stock to 80 million, on December 17, 1997.
As a result of the ProNet Merger, Metrocall will issue 0.90 shares of
Metrocall common stock for each share of ProNet common stock, which
conversion amounts to approximately 12.3 million shares of Metrocall common
stock. In addition, the Board of Directors of Metrocall will consist of 11
directors designated by Metrocall and 3 directors designated by ProNet. The 3
directors designated by ProNet are Max D. Hopper, Jackie R. Kimzey and Edward
E. Jungerman.
2
<PAGE> 3
ITEM 7. FINANCIAL STATEMENTS, PRO FORMA FINANCIAL INFORMATION AND EXHIBITS.
(a) FINANCIAL STATEMENTS
The ProNet financial statements required by Item 7(a) with respect to the
Consolidated Balance Sheet at December 31, 1995 and 1996; the Consolidated
Statements of Operations for the years ended December 31, 1994, 1995 and 1996;
the Consolidated Statements of Stockholders' Equity for the years ended December
31, 1994, 1995 and 1996; the Consolidated Statements of Cash Flows for the years
ended December 31, 1994, 1995 and 1996; and Notes to Consolidated Financial
Statements are incorporated herein by reference from Metrocall's Registration
Statement on Form S-4, as amended, filed with the Securities and Exchange
Commission (the "Commission") on November 6, 1997.
The ProNet financial statements (unaudited) required by Item 7(a) with
respect to the Consolidated Balance Sheets at September 30, 1997 and December
31, 1996; the Consolidated Statements of Operations for the Three and Nine
Months Ended September 30, 1997 and 1996; the Consolidated Statements of Cash
Flows for the Nine Months Ended September 30, 1997 and 1996; and Notes to
Consolidated Financial Statements are incorporated herein by reference from
ProNet's Quarterly Report on Form 10-Q for the quarter ended September 30,
1997, filed with the Commission on November 13, 1997.
(b) PRO FORMA FINANCIAL INFORMATION
The pro forma financial information required by Item 7(b) is provided in
Annex A, attached hereto.
(c) EXHIBITS
<TABLE>
<CAPTION>
Exhibit Description
- ------- -----------
<S> <C>
23.1 Consent of Ernst & Young LLP, as independent auditors
for ProNet.
</TABLE>
3
<PAGE> 4
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.
Date: January 14, 1998
METROCALL, INC.
By: /s/ Vincent D. Kelly
-----------------------------------------------
Vincent D. Kelly
Chief Financial Officer, Executive Vice
President and Treasurer
4
<PAGE> 5
ANNEX A
INDEX TO PRO FORMA FINANCIAL INFORMATION
<TABLE>
<CAPTION>
Page
----
<S> <C>
Pro Forma Condensed Combined Financial Data (Unaudited)........................ 6
Unaudited Pro Forma Condensed Combined Balance Sheet as of September 30, 1997.. 7
Unaudited Pro Forma Condensed Combined Statement of Operations for the Year
Ended December 31, 1996................................................... 8
Unaudited Pro Forma Condensed Combined Statement of Operations for the Nine
Months Ended September 30, 1997........................................... 9
Notes to Unaudited Pro Forma Condensed Combined Financial Statements........... 10
</TABLE>
5
<PAGE> 6
PRO FORMA CONDENSED COMBINED FINANCIAL DATA
(UNAUDITED)
The following unaudited pro forma condensed combined balance sheet under
the heading "Pro Forma Metrocall and the Offering" gives effect to the
Company's offering $200 million in 9 3/4% senior Subordinated Notes in October
1997 (the "Offering") as if it had occurred on September 30, 1997. The
unaudited pro forma condensed combined balance sheet under the heading "Pro
Forma Metrocall, the Offering and ProNet" gives effect to the Offering and the
ProNet Merger as if each had occurred on September 30, 1997.
The unaudited pro forma condensed combined statement of operations for
the year ended December 31, 1996 under the heading "Pro Forma Metrocall" gives
effect to Metrocall's 1996 acquisitions including Parkway Paging, Inc.
("Parkway"), O.R. Estman, Inc. and Dana Paging, Inc. (collectively,
"Satellite") and A+ Network, Inc. ("A+ Network"), as if each transaction had
occurred on January 1, 1996. The unaudited pro forma condensed combined
statement of operations for the year ended December 31, 1996 also gives effect
to the acquisition of substantially all the assets of Page America Group, Inc.
and its subsidiaries (("Page America") with the acquisition being referred to as
the "Page America Acquisition") under the heading "Pro Forma Metrocall and Page
America," to the Page America Acquisition and the Offering under the heading
"Pro Forma Metrocall, Page America and the Offering," and to the Page America
Acquisition, the Offering and the ProNet Merger under the heading "Pro Forma
Metrocall, Page America, the Offering and ProNet" as if each such transaction
had occurred on January 1, 1996.
The unaudited pro forma condensed combined statement of operations for the
nine months ended September 30, 1997 gives effect to the Page America
Acquisition under the heading "Pro Forma Metrocall and Page America" as if that
acquisition had occurred on January 1, 1996. The unaudited pro forma condensed
combined statement of operations for the nine months ended September 30, 1997
gives effect to the Page America Acquisition and the Offering under the heading
"Pro Forma Metrocall, Page America and the Offering" and to the Page America
Acquisition, the Offering and the ProNet Merger under the heading "Pro Forma
Metrocall, Page America, the Offering and ProNet" as if each had occurred on
January 1, 1996.
Each of the recent and pending acquisitions has been or will be accounted
for by the purchase method of accounting. The purchase prices have been
allocated on a preliminary basis to the assets to be acquired based upon the
estimated value of such assets. The final allocation of intangible assets will
be based upon the appraised values of acquired assets on the closing date.
This information should be read in conjunction with the Company's
Consolidated Financial Statements and ProNet's Consolidated Financial
Statements incorporated herein by reference from Metrocall's Registration
Statement on Form S-4, as amended, filed with the Commission on November 6,
1997 and ProNet's Quarterly Report on Form 10-Q filed with the Commission on
November 13, 1997. The information regarding Parkway, Satellite and A+ Network
included under "Pro Forma Metrocall" reflects unaudited results of operations
for those companies prior to the respective dates of acquisition by Metrocall,
and the information regarding Page America reflects audited results of
operations for the year ended December 31, 1996 and unaudited results of
operations for the six months ended June 30, 1997. The unaudited pro forma
condensed combined financial data do not purport to represent what the
Company's results of operations or financial position actually would have been
had such transactions and events occurred on the dates specified, or to project
the Company's results of operations or financial position for any future period
or date. The pro forma adjustments are based upon available information and
certain adjustments that management of Metrocall believes are reasonable. In
the opinion of management of Metrocall, all adjustments have been made that are
necessary to present fairly the unaudited pro forma condensed combined data.
6
<PAGE> 7
PRO FORMA CONDENSED COMBINED BALANCE SHEET
AS OF SEPTEMBER 30, 1997
(UNAUDITED)
<TABLE>
<CAPTION>
PRO FORMA
PRO FORMA METROCALL,
METROCALL PRO THE
THE AND THE FORMA OFFERING
METROCALL OFFERING OFFERING PRONET ADJUSTMENTS AND PRONET
--------- -------- --------- -------- ----------- ----------
(IN THOUSANDS)
<S> <C> <C> <C> <C> <C> <C>
ASSETS
Current assets:
Cash, cash equivalents and short term
investments............................. $ 15,851 $1,150 $ 17,001 $ 3,497 $ -- $ 20,498
Accounts receivable, net.................. 26,288 -- 26,288 13,149 -- 39,437
Prepaid expenses and other current
assets.................................. 8,007 -- 8,007 4,927 -- 12,934
--------- -------- --------- -------- ----------- ----------
Total current assets................ 50,146 -- 51,296 21,573 -- 72,869
Furniture and equipment, net................ 163,195 -- 163,195 68,384 -- 231,579
Intangibles, net............................ 491,221 5,850(K) 487,071 209,804 47,125(A) 754,000
Other assets................................ 1,718 -- 1,718 -- -- 1,718
--------- -------- --------- -------- ----------- ----------
Total assets........................ $706,280 $7,000 $713,280 $299,761 $ 47,125 $1,060,166
========= ======= ========== ======== =========== ==========
Current liabilities:
Current maturities of long-term
obligations............................. $ 926 $ -- $ 926 $ 1,656 $ (1,656)(B) $ 926
Accounts payable and accrued expenses..... 42,530 -- 42,530 25,852 500(B) 68,882
Deferred revenues and subscriber
deposits................................ 7,814 -- 7,814 9,303 -- 17,117
--------- -------- --------- -------- ----------- ----------
Total current liabilities........... 51,270 -- 51,270 36,811 (1,156) 86,925
Capital lease obligations................... 4,500 -- 4,500 -- -- 4,500
Long-term obligations....................... 379,533 7,000(K) 386,533 174,088 8,356(B) 568,977
Deferred income taxes....................... 73,894 -- 73,894 -- 73,408(A) 147,302
Minority interest........................... 510 -- 510 -- -- 510
--------- -------- --------- -------- ----------- ----------
Total liabilities................... 509,707 7,000 516,707 210,899 80,608 808,214
Redeemable preferred stock.................. 51,566 -- 51,566 -- 51,566
Total stockholders' equity (deficit)........ 145,007 -- 145,007 88,862 (33,483)(C) 200,386
--------- -------- --------- -------- ----------- ----------
Total liabilities, redeemable preferred
stock and stockholders' equity............ $706,280 $7,000 $713,280 $299,761 $ 47,125 $1,060,166
========= ======= ========== ======== =========== ==========
</TABLE>
See accompanying notes to this unaudited statement.
7
<PAGE> 8
PRO FORMA CONDENSED COMBINED STATEMENT OF OPERATIONS
FOR THE YEAR ENDED DECEMBER 31, 1996
(UNAUDITED)
<TABLE>
<CAPTION>
HISTORICAL
--------------------------------------------------
A+ PRO FORMA
METROCALL PARKWAY(D) SATELLITE(D) NETWORK(D) ADJUSTMENTS
--------- ---------- ------------ ---------- -----------
(IN THOUSANDS)
<S> <C> <C> <C> <C> <C>
Service, rent & maintenance revenues.... $ 124,029 $5,302 $6,564 $ 78,994 $ --
Product sales........................... 25,928 860 801 5,408 --
--------- ----- ----- ---------- -----------
Total revenues................... 149,957 6,162 7,365 84,402 --
Net book value of products sold......... (21,633) (934) (805) (7,435) 220(F)
--------- ----- ----- ---------- -----------
128,324 5,228 6,560 76,967 220
Service, rent & maintenance expense..... 38,347 1,417 2,418 17,016 --
Selling, marketing, general and
administrative......................... 57,226 2,305 2,449 43,329 (1,087)(G)
Depreciation & amortization............. 58,196 586 447 24,882 16,181(H)
Other................................... -- -- 12 396 --
--------- ----- ----- ---------- -----------
Total operating expenses......... 153,769 4,308 5,326 85,623 15,094
--------- ----- ----- ---------- -----------
(Loss) income from operations........... (25,445) 920 1,234 (8,656) (14,874)
Interest expense, net................... (21,031) (274) (713) (11,844) 3,289(I)
--------- ----- ----- ---------- -----------
Net (loss) income before income
taxes.............................. (46,476) 646 521 (20,500) (11,585)
Benefit (provision) for income taxes.... 1,021 (229) -- -- 4,822(J)
--------- ----- ----- ---------- -----------
Net (loss) income.................... $ (45,455) $ 417 $ 521 $(20,500) $ (6,763)
========= =========== =========== =========== ===========
Net loss per share................... $ (2.80)
=========
Shares used in computing 16,253
net loss per share................... =========
<CAPTION>
PRO FORMA ADJUSTMENTS PRO FORMA
----------------------- PRO METROCALL,
OTHER FORMA PAGE
OPERATIONS PRO METROCALL AMERICA
PRO FORMA PAGE NOT FORMA AND PAGE THE AND THE
METROCALL AMERICA ACQUIRED(E) ADJUSTMENTS AMERICA OFFERING OFFERING
--------- ------- ----------- -------- -------- -------- ---------
<S> <C> <C> <C>
Service, rent & maintenance revenues.... $ 214,889 $20,074 $ -- $ -- $234,963 $ -- $234,963
Product sales........................... 32,997 1,910 -- -- 34,907 -- 34,907
--------- ------- ----- -------- -------- -------- ---------
Total revenues................... 247,886 21,984 -- -- 269,870 -- 269,870
Net book value of products sold......... (30,587) (1,284) -- -- (31,871) -- (31,871)
--------- ------- ----- -------- -------- -------- ---------
217,299 20,700 -- -- 237,999 -- 237,999
Service, rent & maintenance expense..... 59,198 5,318 -- -- 64,516 -- 64,516
Selling, marketing, general and
administrative......................... 104,222 10,258 -- -- 114,480 -- 114,480
Depreciation & amortization............. 100,292 6,173 -- 2,514 (H) 108,979 -- 108,979
Other................................... 408 -- 408 -- 408
--------- ------- ----- -------- -------- -------- ---------
Total operating expenses......... 264,120 21,749 -- 2,514 288,383 -- 288,383
--------- ------- ----- -------- -------- -------- ---------
(Loss) income from operations........... (46,821) (1,049) -- (2,514) (50,384) -- (50,384)
Interest expense, net................... (30,573) (7,061) 6,153 (2,080) (I) (33,561) (16,463)(L) (50,024)
--------- ------- ----- -------- -------- -------- ---------
Net (loss) income before income
taxes.............................. (77,394) (8,110) 6,153 (4,594) (83,945) (16,463) (100,408)
Benefit (provision) for income taxes.... 5,614 -- -- -- 5,614 -- 5,614
--------- ------- ----- -------- -------- -------- ---------
Net (loss) income.................... $ (71,780) $(8,110) $ 6,153 $(4,594) $(78,331) $(16,463) $(94,794)
========= ======== =========== =========== ========= ========= =========
Net loss per share................... $ (2.85) $ (2.69) $ (3.26)
========= ========= =========
Shares used in computing
net loss per share................... 25,201 29,113 29,113
========= ========= =========
<CAPTION>
PRO FORMA
METROCALL,
PAGE
AMERICA,
THE
OFFERING
PRO FORMA AND
PRONET ADJUSTMENTS PRONET
-------- ----------- ---------
Service, rent & maintenance revenues.... $ 87,239 $ -- $ 322,202
Product sales........................... 15,817 -- 50,724
-------- ----------- ---------
Total revenues................... 103,056 -- 372,926
Net book value of products sold......... (13,244) -- (45,115)
-------- ----------- ---------
89,812 -- 327,811
Service, rent & maintenance expense..... 25,924 -- 90,440
Selling, marketing, general and
administrative......................... 39,090 -- 153,570
Depreciation & amortization............. 40,624 3,142(H) 152,745
Other................................... 8,809 -- 9,217
-------- ----------- ---------
Total operating expenses......... 114,447 3,142 405,972
-------- ----------- ---------
(Loss) income from operations........... (24,635) (3,142) (78,161)
Interest expense, net................... (15,085) -- (65,109)
-------- ----------- ---------
Net (loss) income before income
taxes.............................. (39,720) (3,142) (143,270)
Benefit (provision) for income taxes.... (323) 4,894(J) 10,185
-------- ----------- ---------
Net (loss) income.................... $(40,043) $ 1,752 $(133,085)
========= ========== ==========
Net loss per share................... $ (3.21)
==========
Shares used in computing
net loss per share................... 41,419
==========
</TABLE>
See accompanying notes to this unaudited statement.
8
<PAGE> 9
PRO FORMA CONDENSED COMBINED STATEMENT OF OPERATIONS
FOR THE NINE MONTHS ENDED SEPTEMBER 30, 1997
(UNAUDITED)
<TABLE>
<CAPTION>
PRO FORMA
PRO FORMA ADJUSTMENTS METROCALL,
HISTORICAL ----------------------------- PRO FORMA PAGE
---------------------- OTHER PRO METROCALL AMERICA
PAGE OPERATIONS NOT FORMA AND PAGE THE AND THE
METROCALL AMERICA ACQUIRED(E) ADJUSTMENTS AMERICA OFFERING OFFERING
--------- ---------- --------------- ----------- --------- -------- ---------
(IN THOUSANDS)
<S> <C> <C> <C> <C> <C> <C> <C>
Service, rent & maintenance
revenue......................... $183,237 $ 8,669 $ -- $ -- $191,906 $ -- $191,906
Product sales..................... 28,832 658 -- -- 29,490 -- 29,490
--------- ---------- ------ ----------- --------- -------- ---------
Total revenues............ 212,069 9,327 -- -- 221,396 -- 221,396
Net book value of products sold... (21,324) (425) -- -- (21,749) -- (21,749)
--------- ---------- ------ ----------- --------- -------- ---------
190,745 8,902 -- -- 199,647 -- 199,647
Service, rent & maintenance
expense......................... 56,347 2,635 -- -- 58,982 -- 58,982
Selling, marketing, general and
administrative.................. 82,955 4,849 -- -- 87,804 -- 87,804
Depreciation & amortization....... 67,017 2,310 -- 1,257(H) 70,584 -- 70,584
Other............................. -- -- -- -- -- -- --
--------- ---------- ------ ----------- --------- -------- ---------
Total operating
expenses................ 206,319 9,794 -- 1,257 217,370 -- 217,370
--------- ---------- ------ ----------- --------- -------- ---------
(Loss) income from operations..... (15,574) (892) -- (1,257) (17,723) -- (17,723)
Interest expense, net............. (25,824) (3,211) 3,046 (1,040)(I) (27,029) (3,389) (L) (31,418)
--------- ---------- ------ ----------- --------- -------- ---------
Net (loss) income before
income taxes............ (41,398) (4,103) 3,046 (2,297) (44,752) (3,389) (48,141)
Benefit (provision) for income
taxes........................... 3,510 (26) -- --(J) 3,484 -- 3,484
--------- ---------- ------ ----------- --------- -------- ---------
Net (loss) income......... $(37,888) $ (4,129) $ 3,046 $(2,297) $(41,268) $(3,389) $(44,657)
========= =========== =============== =========== ========== ======= ==========
Net loss per share........ $ (1.44) $ (1.42) $ (1.53)
========= ========== ==========
Shares used in computing
net loss per share........ 26,359 29,113 29,113
========= ========== ==========
<CAPTION>
PRO FORMA
METROCALL,
PAGE
AMERICA,
THE
OFFERING
PRO FORMA AND
PRONET ADJUSTMENTS PRONET
-------- ----------- ---------
<S> <C<C> <C> <C>
Service, rent & maintenance
revenue......................... $ 73,742 $ -- $265,378
Product sales..................... 14,888 -- 44,378
-------- ----------- ---------
Total revenues............ 88,360 -- 309,756
Net book value of products sold... (9,909) -- (31,658)
-------- ----------- ---------
78,451 -- 278,098
Service, rent & maintenance
expense......................... 23,126 -- 82,108
Selling, marketing, general and
administrative.................. 32,613 -- 120,417
Depreciation & amortization....... 49,014 2,356(H) 121,954
Other............................. 6,350 -- 6,350
-------- ----------- ---------
Total operating
expenses................ 111,103 2,356 330,829
-------- ----------- ---------
(Loss) income from operations..... (32,652) (2,356) (52,731)
Interest expense, net............. (13,204) -- (43,622)
-------- ----------- ---------
Net (loss) income before
income taxes............ (45,856) (2,356) (96,353)
Benefit (provision) for income
taxes........................... (173) 3,670(J) 6,981
-------- ----------- ---------
Net (loss) income......... $(46,029) $ 1,314 $(89,372)
======== =========== ==========
Net loss per share........ $ (2.16)
==========
Shares used in computing
net loss per share........ 41,419
==========
</TABLE>
See accompanying notes to this unaudited statement.
9
<PAGE> 10
NOTES TO UNAUDITED PRO FORMA CONDENSED
COMBINED FINANCIAL STATEMENTS
The unaudited pro forma condensed combined financial statements assume a
per share price of $4.50 for Metrocall common stock to be issued in connection
with the ProNet Merger. The consideration for the ProNet Merger will be based
upon a conversion ratio of 0.9 of a share of Metrocall common stock per share of
ProNet common stock.
(A) Reflects fair values assigned to intangible assets acquired which consist
of the following (in thousands):
<TABLE>
<CAPTION>
PRONET
---------
<S> <C>
FCC License.................................................... $ 137,641
Subscriber Lists............................................... 45,880
Goodwill....................................................... 73,408
Less: Historical Intangibles................................... (209,804)
---------
$ 47,125
=========
</TABLE>
The ProNet Merger is structured as a tax free reorganization. The deferred
income tax liability represents the tax effect of the difference between
the amounts allocated to assets acquired and their tax basis.
(B) Reflects estimated accruals for direct acquisition and costs related to the
ProNet Merger, including transaction fees, ProNet's securities litigation
settlement and management severance obligations, each of which was funded
with borrowings under Metrocall's credit facility. Current portion of
long-term debt refinanced under the Metrocall Credit Facility.
(C) Reflects the issuance of approximately 12,306,388 shares of Metrocall
common stock in the ProNet Merger.
(D) Historical statements for Parkway, Satellite and A+ Network in 1996 are
through July 16, 1996, August 30, 1996, and November 15, 1996,
respectively, which are the dates the respective acquisitions were
completed. Subsequent to completion of the acquisitions, all financial
reporting data are included in the historical Metrocall data.
(E) Reflects those revenues, expenses and results of operations not assumed of
Page America including interest related to debt not assumed.
(F) Reflects the estimated difference in the net book value of products sold
based upon Metrocall's estimated useful lives of subscriber equipment.
(G) Reflects the elimination of certain executive salaries and bonuses for
Parkway, Satellite and A+ Network executives terminated upon completion of
the respective acquisitions in July, August and November 1996.
(H) Reflects incremental depreciation and amortization based upon the
preliminary allocation of depreciable and amortizable assets and assumed
useful lives of 5 years for subscriber lists, 25 years for FCC licenses and
15 years for goodwill.
(I) Represents the estimated incremental interest at a rate of 8.0% that would
have been incurred assuming all acquisitions were completed on January 1,
1996.
(J) Represents the tax benefit resulting from the amortization of acquired
intangibles for ProNet, A+ Network and Parkway assuming an effective tax
rate of 40%.
(K) Of the total net proceeds of the Offering, $193.0 million were used to
repay outstanding indebtedness under Metrocall's credit facility.
Offering costs including underwriting discounts, were estimated to be
approximately $7.0 million. Actual Offering costs were approximately $5.9
million.
(L) Estimated incremental increase to interest expense as a result of the
Offering as if the Offering had been completed at January 1, 1996. Also,
includes amortization of estimated deferred debt offering costs of
approximately $585 and $440 for the year ended December 31, 1996 and nine
months ended September 30, 1997.
10
<PAGE> 11
EXHIBIT INDEX
<TABLE>
<CAPTION>
Exhibit Description
- ------- -----------
<S> <C>
23.1 Consent of Ernst & Young LLP, as independent auditors
for ProNet.
</TABLE>
11
<PAGE> 1
EXHIBIT 23.1
CONSENT OF ERNST & YOUNG LLP, INDEPENDENT AUDITORS
We consent to the use of our report dated February 5, 1997, except
for Note N, as to which the date is March 4, 1997, with respect to the
consolidated financial statements of ProNet Inc. and subsidiaries included
in the Registration Statement (Form S-4 No. 333-36079) that is incorporated by
reference in this report.
/s/ ERNST & YOUNG LLP
----------------------
ERNST & YOUNG LLP
Dallas, Texas
January 12, 1998
