<PAGE>
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): August 29, 1997
MOBILEMEDIA COMMUNICATIONS, INC.
(Exact name of registrant as specified in its charter)
Delaware 33-68840 22-3379712
(State or other jurisdiction (Commission File No.) (IRS Employer
of incorporation) Identification No.)
65 Challenger Road, Ridgefield Park, New Jersey 07660
(Address of principal executive offices)
(Zip Code)
(201) 440-8400
(Registrant's telephone number, including area code)
--------------------------------------------------------------------
(Former name or former address, if changed since last report)
<PAGE>
INFORMATION TO BE INCLUDED IN THE REPORT
Item 1. Changes in Control of Registrant
Not Applicable.
Item 2. Acquisition or Disposition of Assets.
Not Applicable.
Item 3. Bankruptcy or Receivership
Not Applicable
Item 4. Changes in Registrant's Certifying Accountant
Not Applicable.
Item 5. Other Events.
On August 29, 1997, MobileMedia Corporation (the
"Company"), MobileMedia Communications, Inc. ("MobileMedia
Communications") and all of the subsidiaries of MobileMedia
Communications filed with the United States Bankruptcy Court for the
District of Delaware (the "Bankruptcy Court") their monthly operating
report for the month ended July 31, 1997, which is attached hereto as
Exhibit 99.1.
Item 6. Resignations of Registrants Directors.
Not Applicable
Item 7. Financial Statements and Exhibits.
Not Applicable
Item 8. Change in Fiscal Year.
Not Applicable
<PAGE>
Pursuant to the requirements of the Securities Exchange
Act of 1934, as amended, the registrant has duly caused this
report to be signed on its behalf by the undersigned hereunto duly
authorized.
MOBILEMEDIA COMMUNICATIONS, INC.
a Delaware corporation
Date: September 10, 1997 By: /s/ David R. Gibson
---------------------
David R. Gibson
Senior Vice President and
Chief Financial Officer
<PAGE>
EXHIBIT INDEX
Exhibit Page
- ------- ----
Exhibit 99.1 -- Monthly Operating Report
<PAGE>
Exhibit 99.1
OFFICE OF THE U.S. TRUSTEE - REGION 3
MONTHLY OPERATING REPORT
For the month ended July 31, 1997
Debtor Name: MobileMedia Corporation et al.
Case Number: 97-174 (PJW)
- -------------------------------------------------------------------------------
<TABLE>
<CAPTION>
DOCUMENT PREVIOUSLY EXPLANATION
REQUIRED ATTACHMENTS: ATTACHED SUBMITTED ATTACHED
<S> <C> <C> <C>
1. Tax Receipts ( ) (X) (X)
2. Bank Statements ( ) ( ) (X)
3. Most recently filed Income Tax
Return ( ) (X) ( )
4. Most recent Annual Financial
Statements prepared by accountant ( ) (X) ( )
</TABLE>
IN ACCORDANCE WITH TITLE 28, SECTION 1746, OF THE UNITED STATES CODE, I
DECLARE UNDER PENALTY OF PERJURY THAT I HAVE EXAMINED THE FOLLOWING MONTHLY
OPERATING REPORT AND THE ACCOMPANYING ATTACHMENTS AND, TO THE BEST OF MY
KNOWLEDGE, THESE DOCUMENTS ARE TRUE, CORRECT AND COMPLETE.
RESPONSIBLE PARTY:
/s/ David R. Gibson Senior Vice President/Chief Financial Officer
- ------------------------------ ---------------------------------------------
SIGNATURE OF RESPONSIBLE PARTY TITLE
David R. Gibson August 27, 1997
- --------------------------------- ---------------------------------------------
PRINTED NAME OF RESPONSIBLE PARTY DATE
Page 1 of 18
<PAGE>
OFFICE OF THE U.S. TRUSTEE - REGION 3
ATTACHMENT
For the month ended July 31, 1997
Debtor Name: MobileMedia Corporation et al.
Case Number: 97-174 (PJW)
- -------------------------------------------------------------------------------
1. Payroll tax filings and payments are made by Automated Data Processing,
Inc. (an outside payroll processing company). Evidence of tax payments are
available upon request. Previously, the Debtors filed copies of such
evidence for the third quarter of 1996 with the US Trustee.
Please see the Status of Post Petition Taxes attached hereto for the
month's activity.
2. The Debtors have 63 bank accounts. In order to minimize costs to the
estate, the Debtors have included a GAAP basis Statement of Cash Flows in
the Monthly Operating Report. The Statement of Cash Flows replaces the
listing of cash receipts and disbursements, copies of the bank statements,
and bank account reconciliations.
Page 2 of 18
<PAGE>
OFFICE OF THE U.S. TRUSTEE - REGION 3
CONDENSED CONSOLIDATED
STATEMENT OF OPERATIONS
For the month ended July 31, 1997
Debtor Name: MobileMedia Corporation et al.
Case Number: 97-174 (PJW)
- -------------------------------------------------------------------------------
See Statement of Operations for reporting period attached.
Page 3 of 18
<PAGE>
HEADNOTES:
- ---------
Subsequent to the issuance of the May 31, 1997 Monthly Operating Report, the
Company completed the closing of its unaudited financial statements for the
year ended December 31, 1996; except for the application of Statement of
Financial Accounting Standards No. 121, "Accounting for the Impairment of
Long-lived Assets and for Long-lived Assets, to be Disposed Of" ("SFAS 121").
The following financial statements have not been prepared in accordance with
GAAP because SFAS 121 has not been applied. Upon the application of SFAS 121,
the Company expects to be required to write down the carrying value of its
long-lived assets to their fair value. The Company believes the amount of the
write-down will be material; however, it is not possible at this time to
determine such amount. There may also be adjustments to certain other
accounts as a result of the Debtors' filing for protection under Chapter 11
of the US Bankruptcy Code on January 30, 1997.
(1) The Company has reduced Paging Revenues to reflect the recording of an
allowance for estimated disparities between system recorded revenues and cash
collections in the amounts of $2.0, $2.0 and $2.0 million in the months of
July, June and May, respectively.
MobileMedia Corporation and Subsidiaries
Consolidated Statements of Operations
For the Months Ended July, 31, 1997, June 30, 1997 and May 31, 1997
(Unaudited)
(in thousands)
<TABLE>
<CAPTION>
July June May
1997 1997 1997
---------- ---------- ----------
<S> <C> <C> <C>
Paging Revenues
Service, Rents & Maintenance (1) $41,481 $40,987 $43,599
Equipment Sales
Product Sales 4,055 2,650 2,039
Cost of Products Sold 4,333 2,634 2,011
---------- ---------- ----------
Equipment Margin (278) 16 28
Net Revenue 41,203 41,003 43,627
Operating Expense
Service, Rents & Maintenance 12,992 12,413 14,154
Selling 6,019 5,537 6,110
General Administration 15,053 15,213 15,518
---------- ---------- ----------
Operating Expense Before Depr. & Amort. 34,063 33,163 35,782
EBITDA Before Reorganization Costs 7,140 7,840 7,845
Reorganization Costs 1,784 2,281 1,473
---------- ---------- ----------
EBITDA after Reorganization Costs 5,356 5,559 6,371
Depreciation 8,334 9,292 8,705
Amortization 9,246 9,232 9,232
---------- ---------- ----------
Total Depreciation and Amortization 17,580 18,523 17,938
Operating Loss (12,224) (12,964) (11,567)
Interest Expense 5,465 4,957 5,277
Other Expense (1) 0 (0)
---------- ---------- ----------
Loss Before Income Tax Benefit (17,689) (17,921) (16,843)
Income Tax Benefit 0 0 0
---------- ---------- ----------
Net Loss ($17,689) ($17,921) ($16,843)
========== ========== ==========
</TABLE>
See Accompanying Notes.
Page 4 of 18
<PAGE>
OFFICE OF THE U.S. TRUSTEE--REGION 3
CONDENSED CONSOLIDATED BALANCE SHEET
For the month ended July 31, 1997
Debtor Name: MobileMedia Corporation et al.
Case Number: 97-174 (PJW)
- ------------------------------------------------------------------------------
See balance sheet attached.
Page 5 of 18
<PAGE>
HEADNOTES:
Subsequent to the issuance of the May 31, 1997 Monthly Operating Report, the
Company completed the closing of its unaudited financial statements for the
year ended December 31, 1996; except for the application of statement of
Financial Accounting Standards No. 121, "Accounting for the Impairment of
Long-lived Assets and for Long-lived Assets, to be Disposed Of" ("SFAS 121").
The following financial statements have not been prepared in accordance with
GAAP because SFAS 121 has not been applied. Upon the application of SFAS 121,
the Company expects to be required to write down the carrying value of its
long-lived assets to their fair value. The Company believes the amount of the
write-down will be material; however, it is not possible at this time to
determine such amount. There may also be adjustments to certain other
accounts as a result of the Debtor's filing for protection under Chapter 11
of the US Bankruptcy Code on January 30, 1997.
(1) Reflect certain adjustments to previously reported balance sheet accounts
as a result of the closing of the unaudited financial statements for the year
ended December 31, 1996.
MobileMedia Corporation and Subsidiaries
Consolidated Balance Sheets
As of July 31, 1997, June 30, 1997 and May 31, 1997
(Unaudited)
(in thousands)
<TABLE>
<CAPTION>
JULY 31 JUNE 30 MAY 31
1997 1997 1997 (1)
------------ ------------ ------------
<S> <C> <C> <C>
Assets:
Current Assets:
Cash............................................................... $ 3,468 $ 4,059 $ 3,425
Accounts Receivable, Net........................................... 60,063 60,834 60,186
Inventory.......................................................... 5,395 6,576 9,090
Prepaid Expenses................................................... 1,279 1,130 1,108
Other Current Assets............................................... 2,798 2,755 2,616
------------ ------------ ------------
Total Current Assets............................................ 73,004 75,353 76,425
Noncurrent Assets:
Property and Equipment, Net........................................ 293,194 296,429 298,041
Deferred Financing Fees, Net....................................... 25,708 26,261 26,815
Investment In Net Assets Of Equity Affiliate....................... 2,024 2,001 1,978
Intangible Assets, Net............................................. 1,054,546 1,063,963 1,072,966
Other Assets....................................................... 876 919 933
------------ ------------ ------------
Total Noncurrent Assets......................................... 1,376,348 1,389,574 1,400,732
Total Assets....................................................... $ 1,449,352 $ 1,464,927 $ 1,477,158
------------ ------------ ------------
------------ ------------ ------------
Liabilities and Stockholders' Equity:
Liabilities Not Subject to Compromise:
DIP Credit Facility................................................ $ 15,000 $ 15,000 $ 15,000
Accrued Reorganization Costs....................................... 5,511 5,871 4,162
Accrued Wages, Benefits and Payroll Taxes.......................... 11,713 6,313 5,380
Accounts Payable--Post Petition.................................... 3,939 9,266 8,173
Accrued Interest (Chase & DIP Facilities )......................... 4,621 4,465 4,464
Accrued Expenses and Other Current Liabilities..................... 45,364 35,063 34,284
Advance Billings and Customer Deposits............................. 37,785 37,331 36,514
------------ ------------ ------------
Total Liabilities Not Subject To Compromise..................... 123,932 113,309 107,977
Liabilities Subject to Compromise:
Accrued Wages, Benefits and Payroll Taxes.......................... 3,093 6,420 6,953
Chase Credit Facility.............................................. 649,000 649,000 649,000
Notes Payable--10 1/2%............................................. 174,125 174,125 174,125
Notes Payable--9 3/8%.............................................. 250,000 250,000 250,000
Notes Payable--Yampol.............................................. 986 986 986
Notes Payable--Dial Page 12 1/4%................................... 1,570 1,570 1,570
Accrued Interest On Notes Payable.................................. 20,761 20,761 20,761
Accounts Payable- Pre Petition..................................... 15,822 16,062 13,954
Accrued Expenses and Other Current Liabilities--Pre Petition....... 14,055 18,955 20,128
Other Liabilities.................................................. 5,013 5,056 5,099
------------ ------------ ------------
Total Liabilities Subject To Compromise......................... 1,134,426 1,142,936 1,142,577
Deferred Tax Liability.................................................. 72,097 72,097 72,097
Stockholders' Equity
Class A Common Stock............................................... 39 39 39
Class B Common Stock............................................... 2 2 2
Additional Paid-In Capital......................................... 671,459 671,459 671,459
Accumulated Deficit--Pre Petition.................................. (437,127) (437,127) (437,127)
Accumulated Deficit--Post Petition................................. (109,354) (91,666) (73,744)
------------ ------------ ------------
Total Stockholders' Equity...................................... 125,020 142,708 160,630
Less:
Treasury Stock.......................................................... (6,123) (6,123) (6,123)
------------ ------------ ------------
Total Stockholders' Equity...................................... 118,897 136,585 154,507
Total Liabilities and Stockholders' Equity.............................. $ 1,449,352 $ 1,464,927 $ 1,477,158
------------ ------------ ------------
------------ ------------ ------------
</TABLE>
SEE ACCOMPANYING NOTES
Page 6 of 18
<PAGE>
FOOTNOTES TO THE FINANCIAL STATEMENTS:
1. Subsequent to the issuance of the May 31, 1997 Monthly Operating Report,
the Company completed the closing of its unaudited financial statements for
the year ended December 31, 1996; except for the application of Statement of
Financial Accounting Standards No. 121, "Accounting for the Impairment of
Long-Lived Assets and for Long-Lived Assets, to be Disposed Of" ("SFAS 121").
The financial statements herein have not been prepared in accordance with
GAAP because SFAS 121 has not been applied. The closing of the unaudited
December 31, 1996 financial statements led to adjustments to previously
reported May amounts in the Balance Sheets and Cash Flows as described in the
Headnotes. There may also be adjustments to certain other accounts as a
result of the Debtor's filing for protection under Chapter 11 of the US
Bankruptcy Code on January 30, 1997.
In March 1995, the Financial Accounting Standards Board issued SFAS 121,
which is effective for financial statements for fiscal years beginning after
December 15, 1995. Under certain circumstances, SFAS 121 requires companies
to write down the carrying value of long-lived assets recorded in the
financial statements to the fair value of such assets. A significant amount
of the assets of the Company, which were acquired as a result of the
acquisitions of businesses, including the Dial Page and MobileComm
acquisitions, were recorded in accordance with principles of purchase
accounting at acquisition prices and constitute long-lived assets. The
Company has determined, and its independent auditors have concurred, that
SFAS 121 is applicable to the Company, and therefore the Company expects to
be required to write down the carrying value of its long-lived assets to
their fair value. The Company believes the amount of the write down will be
material: however, it is not possible at this time to determine such amount.
Since the Company cannot comply with SFAS 121 at this time, it is unable to
issue audited financial statements in compliance with generally accepted
accounting principles. Consequently, the Company will not file its Report on
Form 10-K or its other periodic reports under the Securities Exchange Act of
1934, as amended.
Page 7 of 18
<PAGE>
FOOTNOTES TO THE FINANCIAL STATEMENTS: (CONTINUED)
2. On January 30, 1997 (the "Filing Date"), MobileMedia Corporation (the
"Company"), MobileMedia Communications, Inc. ("MobileMedia Communications")
and all seventeen of MobileMedia Communications' subsidiaries filed for
protection under Chapter 11 of title 11 of the United States Code (the
"Bankruptcy Code"). The Debtors are operating as debtors-in-possession and
are subject to the jurisdiction of the United States Bankruptcy Court for the
District of Delaware (the "Bankruptcy Court").
The Court has authorized the debtors to pay certain pre-petition creditors.
These permitted pre-petition payments include: (i) employee salary and wages;
(ii) certain employee benefits and travel expenses; (iii) certain amounts
owing to essential vendors; (iv) trust fund type sales and use taxes; (v)
trust fund payroll taxes; (vi) customer refunds; and (vii) customer rewards.
3. Since the Filing Date, the Debtors have continued to manage their
business as debtors-in-possession under sections 1107 and 1108 of the
Bankruptcy Code. During the pendency of the Chapter 11 cases, the Bankruptcy
Court has jurisdiction over the assets and affairs of the Debtors, and their
continued operations are subject to the Bankruptcy Court's protection and
supervision. The Debtors have sought, obtained, and are in the process of
applying for, various orders from the Bankruptcy Court intended to stabilize
and reorganize their business and minimize any disruption caused by the
Chapter 11 cases.
4. The company has reduced Paging Revenues to reflect the recording of an
allowance for estimated disparities between system recorded revenues and cash
collections in the amounts of $2.0, $2.0 and $2.0 million for the months of
July, June and May, respectively.
5. During the month of February 1997, the Debtors drew down $45 million of
borrowings under the debtor-in-possession financing facility (the "DIP
facility") with The Chase Manhattan Bank, as agent for the lenders thereunder
(the "DIP Lenders"). During the months of March and April 1997, the Debtors
repaid $25 million and $5 million, respectively, of borrowings under the DIP
facility.
6. The Company is one of the largest paging companies in the U.S., with
approximately 3.8 million system reported units in service at July 31, 1997,
and offers local, regional and national paging services to its subscribers.
The Company estimates it will remove approximately 0.2 million units included
above, for which payment is delinquent. The consolidated financial statements
include the accounts of the Company and its wholly-owned subsidiaries. The
Company's business is conducted primarily through the Company's principal
operating subsidiary, MobileMedia Communications, and its subsidiaries. The
Company markets its services primarily under the "MobileComm" brand name. All
significant intercompany accounts and transactions have been eliminated.
Page 8 of 18
<PAGE>
FOOTNOTES TO THE FINANCIAL STATEMENTS: (CONTINUED)
7. As previously announced in its September 27, 1996 and October 21, 1996
releases, the Company discovered misrepresentations and other violations
which occurred during the licensing process for as many as 400 to 500, or
approximately 6% to 7%, of its approximately 8,000 local transmission one-way
paging stations. The Company caused an investigation to be conducted by its
outside counsel, and a comprehensive report regarding these matters was
provided to the Federal Communications Commission (the "FCC") in the fall of
1996. In cooperation with the FCC, outside counsel's investigation was
expanded to examine all of the Company's paging licenses, and the results of
that investigation were submitted to the FCC on November 8, 1996. As part of
the cooperative process, the Company also proposed to the FCC that a Consent
Order be entered which would result, among other things, in the return of
certain local paging authorizations then held by the Company, the dismissal
of certain pending applications for paging authorizations, and the voluntary
acceptance of a substantial monetary forfeiture.
On January 13, 1997, the FCC issued a Public Notice relating to the status
of certain FCC authorizations held by the Company. Pursuant to the Public
Notice, the FCC announced that it had (i) automatically terminated
approximately 185 authorizations for paging facilities that were not
constructed by the expiration date of their construction permits and remained
unconstructed, (ii) dismissed approximately 94 applications for fill-in sites
around existing paging stations (which had been filed under the so-called
"40-mile rule") as defective because they were predicated upon unconstructed
facilities and (iii) automatically terminated approximately 99 other
authorizations for paging facilities that were constructed after the
expiration date of their construction permits. With respect to the
approximately 99 authorizations where the underlying station was untimely
constructed, the FCC granted the Company interim operating authority subject
to further action by the FCC.
On April 8, 1997, the FCC adopted an order commencing an administrative
hearing into the qualification of the Company to remain a licensee. The order
directed an Administrative Law Judge to take evidence and develop a full
factual record on directed issues concerning the Company's filing of false
forms and applications. The Company was permitted to operate its licensed
facilities and provide service to the public during the pendency of the
hearing.
Page 9 of 18
<PAGE>
FOOTNOTES TO THE FINANCIAL STATEMENTS: (CONTINUED)
On June 6, 1997, the FCC issued an order staying the hearing proceeding
for ten months in order to allow the Company to develop and consummate a plan
of reorganization that provides for a change of control of the Company and a
permissable transfer of the Company's FCC licenses. The order, which is based
on an FCC doctrine known as Second Thursday, provides that if there is a
change of control that meets the conditions of Second Thursday, the Company's
FCC issues will be resolved by the transfer of the Company's FCC licenses to
the new owners of the Company and the hearing will not proceed. The Company
believes that a reorganization plan that provides for either a conversion of
certain existing debt to equity, in which case existing MobileMedia shares
will be substantially diluted or eliminated, or a sale of the Company will
result in a change of control. There can be no assurance that the Company
will be successful in consummating a plan of reorganization meeting the
requirements of the order. In the event that the Company were unable to do
so, the Company would be required to proceed with the hearing, which, if
adversely determined, could result in the loss of the Company's licenses or
substantial monetary fines, or both. Such an outcome would have a material
adverse effect on the Company's financial condition and results of
operations.
Page 10 of 18
<PAGE>
OFFICE OF THE U.S. TRUSTEE--REGION 3
CONSOLIDATED STATEMENT OF CASH
RECEIPTS AND DISBURSEMENTS
For the month ended July 31, 1997
Debtor Name: MobileMedia Corporation et al.
Case Number: 97-174 (PJW)
- -------------------------------------------------------------------------------
The Debtors have 63 bank accounts. In order to minimize costs to the
estate, the Debtors have included a GAAP basis Statement of Cash Flows for
the reporting period which is attached. The Statement of Cash Flows replaces
the listing of cash receipts and disbursements, copies of the bank
statements, and bank account reconciliations.
Page 11 of 18
<PAGE>
HEADNOTES:
Subsequent to the issuance of the May 31, 1997 Monthly Operating Report, the
Company completed the closing of its unaudited financial statements for the
year ended December 31, 1996; except for the application of Statement of
Financial Accounting Standards No. 121, "Accounting for the Impairment of
Long-lived Assets and for Long-lived Assets, to be Disposed of " ("SFAS
121"). The following financial statements have not been prepared in
accordance with GAAP because SFAS 121 has not been applied. Upon the
application of SFAS 121, the Company expects to be required to write down the
carrying value of its long-lived assets to their fair value. The Company
believes the amount of the write-down will be material; however, it is not
possible at this time to determine such amount. There may also be adjustments
to certain other accounts as a result of the Debtors' filing for protection
under Chapter 11 of the US Bankruptcy Code on January 30, 1997.
(1) Reflect certain adjustments to previously reported cash flow items as a
result of the closing of the unaudited financial statements for the year
ended December 31, 1996.
MobileMedia Corporation and Subsidiaries
Consolidated Statements Of Cash Flows
For The Months Ended July 31, 1997, June 30, 1997 and May 31, 1997
(Unaudited)
(in thousands)
<TABLE>
<CAPTION>
JULY JUNE MAY
1997 1997 1997(1)
---------- ---------- ----------
<S> <C> <C> <C>
Operating Activities
Net Loss.................................................................... ($17,689) ($17,921) ($16,843)
Adjustments To Reconcile Net Loss To Net Cash
Provided By (Used In) Operating Activities:
Depreciation And Amortization............................................. 17,580 18,523 17,938
Provision For Uncollectible Accounts And Returns.......................... 5,468 5,323 5,527
Undistributed Earnings Of Affiliate....................................... (23) (23) (28)
Deferred Financings Fees, Net............................................. 554 554 554
Change In Operating Assets and Liabilities:
Accounts Receivable..................................................... (4,698) (5,971) (4,842)
Inventory............................................................... 1,180 2,515 1,445
Prepaid Expenses And Other Assets....................................... 22 (377) 370
Accounts Payable, Accrued Expenses and Other............................ 2,114 5,691 (6,714)
---------- ---------- ----------
Net Cash Provided By (Used In) Operating Activities........................... 4,508 8,314 (2,593)
Investing Activities
Construction And Capital Expenditures,
Including Net Change In Pager Assets.................................... (5,100) (7,680) (2,780)
---------- ---------- ----------
Net Cash Used In Investing Activities......................................... (5,100) (7,680) (2,780)
Financing Activities
Borrowings (Repayments) of DIP Credit Facility.............................. 0 0 0
---------- ---------- ----------
Net Cash Provided By (Used In) Financing Activities........................... 0 0 0
Net Decrease In Cash And Cash Equivalents..................................... (591) 634 (5,374)
Cash And Cash Equivalents At Beginning Of Period.............................. 4,059 3,425 8,799
---------- ---------- ----------
Cash And Cash Equivalents At End Of Period.................................... $ 3,468 $ 4,059 $ 3,425
---------- ---------- ----------
---------- ---------- ----------
</TABLE>
SEE ACCOMPANYING NOTES
12 of 18
<PAGE>
OFFICE OF THE U.S. TRUSTEE--REGION 3
STATEMENT OF ACCOUNTS RECEIVABLE AGING AND
AGING OF POSTPETITION ACCOUNTS PAYABLE
For the month ended July 31, 1997
Debtor Name: MobileMedia Corporation et al.
Case Number: 97-174 (PJW)
- -------------------------------------------------------------------------------
- -------------------------------------------------------------------------------
ACCOUNTS RECEIVABLE AGING
- -------------------------------------------------------------------------------
$41,033,028 0-30 days old
- -------------------------------------------------------------------------------
21,493,772 31-60 days old
- -------------------------------------------------------------------------------
14,354,770 61-90 days old
- -------------------------------------------------------------------------------
63,574,251 91+ days old
- -------------------------------------------------------------------------------
140,455,821 TOTAL TRADE ACCOUNTS RECEIVABLE
- -------------------------------------------------------------------------------
(82,469,423) ALLOWANCE FOR UNCOLLECTIBLE ACCOUNTS
- -------------------------------------------------------------------------------
57,986,398 TRADE ACCOUNTS RECEIVABLE (NET)
- -------------------------------------------------------------------------------
2,076,998 OTHER NON-TRADE RECEIVABLES
- -------------------------------------------------------------------------------
$60,063,396 ACCOUNTS RECEIVABLE, NET
- -------------------------------------------------------------------------------
<TABLE>
<CAPTION>
- -------------------------------------------------------------------------------
AGING OF POSTPETITION ACCOUNTS PAYABLE
- -----------------------------------------------------------------------------------------------------------------
0-30 31-60 61-90 91+
DAYS DAYS DAYS DAYS TOTAL
- -----------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
ACCOUNTS PAYABLE................................... $2,036,014 1,136,783 501,561 264,297 $3,938,654
- -----------------------------------------------------------------------------------------------------------------
</TABLE>
Page 13 of 18
<PAGE>
OFFICE OF THE U.S. TRUSTEE--REGION 3
STATEMENT OF OPERATIONS, TAXES,
INSURANCE AND PERSONNEL
For the month ended July 31, 1997
Debtor Name: MobileMedia Corporation et al.
Case Number: 97-174 (PJW)
<TABLE>
<CAPTION>
- --------------------------------------------------------------------------------------------------------------------------
STATUS OF POSTPETITION TAXES
- --------------------------------------------------------------------------------------------------------------------------
BEGINNING AMOUNT ENDING
TAX WITHHELD AMOUNT TAX DELINQUENT
LIABILITY OR ACCRUED PAID LIABILITY TAXES
------------ -------------- ------------ ------------ --------------
<S> <C> <C> <C> <C> <C>
- --------------------------------------------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------------------------------------------------
FEDERAL
- --------------------------------------------------------------------------------------------------------------------------
WITHHOLDING................................ $ 0 $ 2,183,474 $ 2,183,474 $ 0 $ 0
- --------------------------------------------------------------------------------------------------------------------------
FICA-EMPLOYEE.............................. 0 671,295 671,295 0 0
- --------------------------------------------------------------------------------------------------------------------------
FICA-EMPLOYER.............................. 33,772 1,599,602 1,506,011 127,363 0
- --------------------------------------------------------------------------------------------------------------------------
UNEMPLOYMENT............................... 461 20,162 18,780 1,843 0
- --------------------------------------------------------------------------------------------------------------------------
INCOME..................................... 0 0 0 0 0
- --------------------------------------------------------------------------------------------------------------------------
TOTAL FEDERAL TAXES........................ 34,233 4,474,533 4,379,560 129,206 0
- --------------------------------------------------------------------------------------------------------------------------
STATE AND LOCAL
- --------------------------------------------------------------------------------------------------------------------------
WITHHOLDING................................ 0 207,546 207,546 0 0
- --------------------------------------------------------------------------------------------------------------------------
SALES...................................... 610,191 2,378,889 1,857,863 1,131,216 0
- --------------------------------------------------------------------------------------------------------------------------
UNEMPLOYMENT............................... 2,546 97,326 90,002 9,870 0
- --------------------------------------------------------------------------------------------------------------------------
REAL PROPERTY.............................. 1,670,473 774,508 228,970 2,216,011 0
- --------------------------------------------------------------------------------------------------------------------------
OTHER...................................... 208,286 319,292 53,215 474,363 0
- --------------------------------------------------------------------------------------------------------------------------
TOTAL STATE AND LOCAL...................... 2,491,496 3,831,137 2,437,596 3,885,038 0
- --------------------------------------------------------------------------------------------------------------------------
TOTAL TAXES................................ $2,525,729 $ 8,305,670 $ 6,817,156 $ 4,014,244 $ 0
- --------------------------------------------------------------------------------------------------------------------------
</TABLE>
Page 14 of 18
<PAGE>
<TABLE>
<CAPTION>
- -----------------------------------------------------------------------------------------------------------------
PAYMENTS TO INSIDERS AND PROFESSIONALS
For the month ended July 31, 1997
- -----------------------------------------------------------------------------------------------------------------
INSIDERS
- -----------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
SALARY/BONUS/ REIMBURSABLE
PAYEE NAME POSITION AUTO ALLOWANCE EXPENSES TOTAL
- ---------------------------------- ---------------------------------- -------------- ------------- ----------
Alvarez & Marsal Inc.-- Chairman--Restructuring $ 0 $ 0 $ 0
Joseph A. Bondi
- -----------------------------------------------------------------------------------------------------------------
Boykin, Roberta Assistant Corporate Counsel 8,462 0 8,462
- -----------------------------------------------------------------------------------------------------------------
Burdette, H. Stephen Senior VP Corporate Development 15,530 2,398 17,928
and Acting Senior VP Operations
- -----------------------------------------------------------------------------------------------------------------
Cross, Andrew Executive VP Sales and Marketing 17,000 4,584 21,584
- -----------------------------------------------------------------------------------------------------------------
Grawert, Ron Chief Executive Officer 30,769 5,942 36,711
- -----------------------------------------------------------------------------------------------------------------
Gray, Patricia Secretary/Acting General Counsel 13,085 165 13,250
- -----------------------------------------------------------------------------------------------------------------
Gross, Steven Senior VP Strategic Planning 13,923 2,587 16,510
- -----------------------------------------------------------------------------------------------------------------
Hilson, Debra Assistant Secretary 4,615 1,960 6,575
- -----------------------------------------------------------------------------------------------------------------
Hughes, Curtis Assistant VP Mgmt. Information 8,320 299 8,619
Systems
- -----------------------------------------------------------------------------------------------------------------
Pascucci, James Assistant Treasurer 7,315 1,370 8,685
- -----------------------------------------------------------------------------------------------------------------
Pittsman, Santo Senior VP of Administration and 15,846 540 16,386
Business Planning
- -----------------------------------------------------------------------------------------------------------------
Shea, Kevin Treasurer 10,778 0 10,778
- -----------------------------------------------------------------------------------------------------------------
Witsaman, Mark Senior VP and Chief Technology 15,942 6,195 22,137
Officer
- -----------------------------------------------------------------------------------------------------------------
TOTAL PAYMENTS TO INSIDERS $ 187,625
- -----------------------------------------------------------------------------------------------------------------
</TABLE>
Page 15 of 18
<PAGE>
- -------------------------------------------------------------------------------
PAYMENTS TO INSIDERS AND PROFESSIONALS (Continued)
For the month ended July 31, 1997
- -------------------------------------------------------------------------------
<TABLE>
<CAPTION>
- -----------------------------------------------------------------------------------------------------------------------
PROFESSIONALS
- -----------------------------------------------------------------------------------------------------------------------
HOLDBACK
AND
DATE OF INVOICE
COURT INVOICES INVOICES BALANCES
NAME AND RELATIONSHIP APPROVAL RECEIVED (1) PAID DUE
- --------------------------------------------------------------- ------------ ------------ ------------ ------------
<S> <C> <C> <C> <C>
1. Ernst & Young--Auditor, Tax and Financial Consultants to
Debtor 1/30/97 $ 1,197,758 $ 480,256 $ 943,616
- -----------------------------------------------------------------------------------------------------------------------
2. Latham & Watkins--Counsel to Debtor 1/30/97 104,114 157,589 238,553
- -----------------------------------------------------------------------------------------------------------------------
3. Alvarez & Marsal Inc.- Restructuring Consultant to Debtor
(2) 1/30/97 223,297 176,492 364,555
- -----------------------------------------------------------------------------------------------------------------------
4. Sidley & Austin--Bankruptcy Counsel to Debtor 1/30/97 174,371 161,199 333,274
- -----------------------------------------------------------------------------------------------------------------------
5. Young, Conway, Stargate & Taylor--Delaware Counsel to Debtor 1/30/97 12,346 26,204 18,944
- -----------------------------------------------------------------------------------------------------------------------
6. Wiley, Rein & Fielding--FCC Counsel to Debtor 1/30/97 194,229 192,975 300,753
- -----------------------------------------------------------------------------------------------------------------------
7. Koteen & Naftalin--FCC Counsel to Debtor 6/11/97 16,060 39,412 25,744
- -----------------------------------------------------------------------------------------------------------------------
8. Houlihan, Lokey, Howard & Zukin--Advisors to the Creditors'
Committee 6/04/97 -- 264,398 50,000
- -----------------------------------------------------------------------------------------------------------------------
9. Jones, Day, Reavis & Pogue--Counsel to the Creditors'
Committee 4/03/97 30,597 64,553 19,669
- -----------------------------------------------------------------------------------------------------------------------
10. Morris, Nichols, Arsht & Tunnell--Delaware Counsel to the
Creditors' Committee 4/03/97 -- 8,378 1,756
- -----------------------------------------------------------------------------------------------------------------------
11. Paul, Weiss, Rifkind, Wharton & Garrison--FCC Counsel to
the Creditors' Committee 4/25/97 38,928 31,999 16,251
- -----------------------------------------------------------------------------------------------------------------------
12. The Blackstone Group LP--Financial Advisors to Debtor 7/10/97 509,462 0 509,462
- -----------------------------------------------------------------------------------------------------------------------
TOTAL PAYMENTS TO PROFESSIONALS $ 2,501,162 $ 1,603,455 $ 2,822,577
- -----------------------------------------------------------------------------------------------------------------------
</TABLE>
- ------------------------
(1) Excludes invoices for fees and expenses through July 31, 1997 that were
received by the Debtors subsequent to July 31, 1997.
(2) Includes fees and expenses for David R. Gibson, Senior Vice President and
Chief Financial Officer (effective June 24, 1997).
Page 16 of 18
<PAGE>
- --------------------------------------------------------------------------------
ADEQUATE PROTECTION PAYMENTS
For the month ended July 31, 1997
- --------------------------------------------------------------------------------
SCHEDULED AMOUNTS
MONTHLY PAID TOTAL
PAYMENTS DURING UNPAID
NAME OF CREDITOR DUE MONTH POSTPETITION
- --------------------------------------- ----------- ------------ ------------
The Chase Manhattan Bank--(Interest)... $ 4,724,249 $ 4,724,249* $ 0
- --------------------------------------------------------------------------------
- ------------------------
* Payment made on 8/1/97.
<TABLE>
<CAPTION>
- ------------------------------------------------------------------------------------------------------------------------
QUESTIONNAIRE
FOR THE MONTH ENDED JULY 31, 1997 YES NO
- --------------------------------------------------------------------------------------------------------- ----- ----
<S> <C> <C>
1. Have any assets been sold or transferred outside the normal course of business this reporting period? No
- ------------------------------------------------------------------------------------------------------------------------
2. Have any funds been disbursed from any account other than a debtor in possession account? No
- ------------------------------------------------------------------------------------------------------------------------
3. Are any postpetition receivables (accounts, notes, or loans) due from related parties? No
- ------------------------------------------------------------------------------------------------------------------------
4. Have any payments been made of prepetition liabilities this reporting period? Yes
- ------------------------------------------------------------------------------------------------------------------------
5. Have any postpetition loans been received by the debtor from any party? Yes
- ------------------------------------------------------------------------------------------------------------------------
6. Are any postpetition payroll taxes past due? No
- ------------------------------------------------------------------------------------------------------------------------
7. Are any postpetition state or federal income taxes past due? No
- ------------------------------------------------------------------------------------------------------------------------
8. Are any postpetition real estate taxes past due? No
- ------------------------------------------------------------------------------------------------------------------------
9. Are any postpetition taxes past due? No
- ------------------------------------------------------------------------------------------------------------------------
10. Are any amounts owed to postpetition creditors past due? No
- ------------------------------------------------------------------------------------------------------------------------
11. Have any prepetition taxes been paid during the reporting period? Yes
- ------------------------------------------------------------------------------------------------------------------------
12. Are any wage payments past due? No
- ------------------------------------------------------------------------------------------------------------------------
</TABLE>
If the answer to any of the above questions is "YES", provide a detailed
explanation of each item.
Item 4 & 11. The Court has authorized the Debtors to pay certain pre-petition
creditors. These permitted prepetition payments include (i)
employee salary and wages; (ii) certain employee benefits and
travel expenses; (iii) certain amounts owing to essential
vendors; (iv) trust fund type sales and use taxes; (v) trust
fund payroll taxes; (vi) customer refunds; and (vii) customer
rewards.
Item 5. During the month of February 1997, the Debtors drew down $45
million of borrowings under the DIP facility with The Chase
Manhattan Bank, as agent for the lenders thereunder. During the
months of March and April 1997, the Debtors repaid $25 million
and $5 million, respectively, of borrowings under the DIP
facility.
Page 17 of 18
<PAGE>
- --------------------------------------------------------------------------------
INSURANCE
For the month ended July 31, 1997
- --------------------------------------------------------------------------------
There were no changes in insurance coverage for the reporting period.
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
- ----------------------------------------------------------------------------------------------
PERSONNEL
For the month ended July 31, 1997
- ----------------------------------------------------------------------------------------------
FULL TIME PART TIME
----------- -------------
<S> <C> <C>
- ----------------------------------------------------------------------------------------------
1. Total number of employees at beginning of period 3,457 135
- ----------------------------------------------------------------------------------------------
2. Number of employees hired during the period 7 17
- ----------------------------------------------------------------------------------------------
3. Number of employees terminated or resigned during the period 13 97
- ----------------------------------------------------------------------------------------------
4. Total number of employees on payroll at end of period 3,451 55
- ----------------------------------------------------------------------------------------------
</TABLE>
Page 18 of 18
