SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D. C. 20549
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AMENDMENT NO. 1 ON
FORM 8-K/A
CURRENT REPORT
PURSUANT TO SECTION 13 OR 15 (D) OF THE
SECURITIES EXCHANGE ACT OF 1934
Date of Report (Date of earliest event reported):
May 5, 1997
BROOKS FIBER PROPERTIES, INC.
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(Exact Name of Registrant as Specified in Charter)
Delaware
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(State or Other Jurisdiction of Incorporation)
0-28036
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(Commission File Number)
43-1656187
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(I.R.S. Employer Identification Number)
425 Woods Mill Road South, Suite 300, St. Louis, Missouri 63017
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(Address of Principal Executive Offices) (Zip Code)
Registrant's telephone number, including area code:
(314) 878-1616
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ITEM 7. FINANCIAL STATEMENTS, PRO FORMA FINANCIAL INFORMATION AND EXHIBITS.
(b) Pro Forma Financial Information.
UNAUDITED PRO FORMA COMBINED
CONSOLIDATED FINANCIAL INFORMATION
The following unaudited pro forma combined consolidated financial
information gives effect to the merger of the Company with Metro Access
Networks, Inc. (MAN) (which occurred on May 5, 1997) using the purchase method
of accounting and assumes (i) for purposes of the pro forma statement of
operations data for the year ended December 31, 1996, that the merger was
consummated on January 1, 1996 and (ii) for purposes of the pro forma balance
sheet that the merger was consummated on December 31, 1996.
The unaudited pro forma combined consolidated financial information and
accompanying notes reflect the historical operations and balances of the Company
and MAN and the application of the purchase method of accounting.
The unaudited pro forma combined consolidated financial information is intended
for informational purposes only and is not necessarily indicative of the future
financial position or future results of operations of the combined companies
after the merger with MAN or of the financial position or the results of
operations of the combined company that would have actually occurred had the
merger with MAN been in effect as of the date or for the period presented.
The unaudited pro forma combined consolidated financial information and the
accompanying notes should be read in conjunction with and are qualified in their
entirety by the consolidated financial statements, including the accompanying
notes, of the Company as of December 31, 1996 and 1995 and for the years ended
December 31, 1996, 1995 and 1994, and of MAN as of December 31, 1996 and 1995
and for the years ended December 31, 1996, 1995 and 1994, which are included
herein.
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<TABLE>
BROOKS FIBER PROPERTIES, INC. AND SUBSIDIARIES
PRO FORMA COMBINED CONSOLIDATED STATEMENT OF OPERATIONS
YEAR ENDED DECEMBER 31, 1996
(UNAUDITED)
<CAPTION>
BFP
Metro Access Pro Forma
Networks, Inc. Pro Forma Combined
BFP (MAN) Adjustments Consolidated
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<S> <C> <C> <C> <C>
Revenues ....................................................... $ 45,574,000 3,999,000 $ 49,573,000
Expenses:
Service Costs ............................................. 21,468,000 4,082,000 25,550,000
Selling, general and administrative expenses .............. 38,596,000 5,183,000 (320,000)(1) 43,459,000
Depreciation and amortization ............................. 16,296,000 1,259,000 2,061,000 (2) 19,616,000
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76,360,000 10,524,000 1,741,000 88,625,000
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Loss from operations ...................................... (30,786,000) (6,525,000) (1,741,000) (39,052,000)
Other income (expense):
Interest income ........................................... 16,539,000 8,000 (8,000)(3) 16,539,000
Interest expense .......................................... (31,186,000) (1,866,000) 1,866,000 (3) (31,186,000)
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Loss before income taxes and minority interests ........... (45,433,000) (8,383,000) 117,000 (53,699,000)
Income tax benefit ............................................. -- (2,930,000) 2,930,000 (4) --
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Loss before minority interests ............................. (45,433,000) (5,453,000) (2,813,000) (53,699,000)
Minority interest in share of loss ............................. 1,590,000 -- 1,590,000
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Net Loss .................................................. $(43,843,000) (5,453,000) (2,813,000) $(52,109,000)
============ ============== ============ ============
Pro forma loss per common equivalent share ..................... $ (1.72)(5)
============
See accompanying notes to pro forma combined consolidated financial statements.
</TABLE>
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<TABLE>
BROOKS FIBER PROPERTIES, INC. AND SUSIDIARIES
PRO FORMA COMBINED CONSOLIDATED BALANCE SHEET
DECEMBER 31, 1996
(UNAUDITED)
<CAPTION>
BFP
Metro Access Pro Forma
Networks, Inc. Pro Forma Combined
BFP (MAN) Adjustments Consolidated
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<S> <C> <C> <C> <C>
ASSETS
Current assets:
Cash and cash equivalents ................................. 261,880,000 5,000 (6,497,000)(1) 255,388,000
Marketable securities, at cost ............................ 182,304,000 -- 182,304,000
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444,184,000 5,000 (6,497,000) 437,692,000
Accounts receivable, net .................................. 13,989,000 498,000 14,487,000
Other current assets ...................................... 11,989,000 1,378,000 13,367,000
------------ -------------- ------------ ------------
Total currents assets ................................ 470,162,000 1,881,000 (6,497,000) 465,546,000
Networks and equipment, at cost ................................ 306,455,000 35,017,000 5,145,000 (2) 346,617,000
Less accumulated depreciation and amortization ............ 16,114,000 1,960,000 18,074,000
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Networks and equipment, net ............................... 290,341,000 33,057,000 5,145,000 328,543,000
Investment in minority owned venture ........................... 20,000,000 -- 20,000,000
Other assets, net .............................................. 99,078,000 1,185,000 51,517,000 (3) 151,780,000
------------ -------------- ------------ ------------
Total assets ......................................... 879,581,000 36,123,000 50,165,000 965,869,000
============ ============== ============ ============
LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities:
Accounts payable .......................................... 6,511,000 41,859,000 (38,813,000)(4) 9,557,000
Accrued liabilities ....................................... 17,915,000 1,263,000 19,178,000
Other current liabilities ................................. 10,511,000 -- 10,511,000
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Total current liabilities ............................ 34,937,000 43,122,000 (38,813,000) 39,246,000
Long-term debt, net of current portion ......................... 552,810,000 -- 552,810,000
Minority interests ............................................. -- -- --
Common stock, subject to redemption ............................ 25,200,000 -- 25,200,000
Shareholders' equity:
Common stock .............................................. 291,000 -- 46,000 (1) 337,000
Additional paid-in capital ................................ 323,850,000 2,476,000 (2,476,000)(3) 405,783,000
81,933,000 (1)
Accumulated deficit ....................................... (57,507,000) (9,475,000) 9,475,000 (3) (57,507,000)
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Total shareholders' equity ........................... 266,634,000 (6,999,000) 88,978,000 348,613,000
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Total liabilities and shareholders' equity ........... 879,581,000 36,123,000 50,165,000 965,869,000
============ ============== ============ ============
See accompanying notes to pro forma combined consolidated financial statements.
</TABLE>
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BROOKS FIBER PROPERTIES, INC. AND SUBSIDIARIES
NOTES TO PRO FORMA COMBINED
CONSOLIDATED FINANCIAL STATEMENTS
(UNAUDITED)
STATEMENT OF OPERATIONS
The following notes to the pro forma combined consolidated financial
statements represent explanations related to the pro forma adjustments to the
historical statements of operations of the Company and MAN.
1. Adjustment represents the elimination of corporate allocation expenses
charged to MAN by Century Telephone Enterprises, Inc. (Century) which
would be non-recurring in nature.
2. Amount represents the amortization, over a period of 25 years, of the
pro forma goodwill related to the merger with MAN of approximately
$51,517,000.
3. Represents the elimination of interest expense on outstanding debt
payable to Century as well as interest income earned from Century on
the related cash balances. The debt payable to Century was exchanged
for shares of common stock of MAN at the time of the merger for
purposes of determining the merger consideration to be paid to Century.
4. Adjustment represents the elimination of an income tax benefit
allocated to MAN resulting from Century utilizing a net tax loss
generated by MAN on its consolidated federal income tax return. No
provision for income taxes would be recorded on the pro forma
consolidated statement of operations for 1996.
5. Pro forma loss per share has been computed using the weighted average
number of shares of common stock outstanding of the Company for the
year-ended December 31, 1996 of 25,627,328 plus the 4,586,226 shares
issued in connection with the MAN merger. The resultant number of
shares used in computing pro forma loss per share was 30,213,554.
BALANCE SHEET
The following notes to the pro forma combined consolidated financial
statements represent the explanations related to the pro forma adjustments to
the balance sheets of the Company and MAN.
1. Reflects the issuance of 4,586,226 shares of common stock by the
Company and additional cash paid in connection with the merger with
MAN.
2. Represents capital expenditures between December 31, 1996 and March 31,
1997.
3. Represents the pro forma goodwill related to the MAN merger of
approximately $51,517,000 based on the issuance of shares and cash
paid, as well as assumption of certain specified liabilities. The
purchase price of $88,476,000 was allocated based on the fair value of
tangible assets acquired of $41,268,000 and the fair value of
liabilities assumed of $4,309,000.
4. The adjustment represents the elimination of outstanding debt to
Century. The debt payable to Century was exchanged for shares of common
stock of MAN at the time of the merger for purposes of determining the
merger consideration to be paid to Century.
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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.
BROOKS FIBER PROPERTIES, INC.
Date: June 20, 1997 By: David L. Solomon
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David L. Solomon
Executive Vice President and
Chief Financial Officer
(Principal Financial and
Accounting Officer)
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EXHIBIT INDEX
Exhibit No. Description of Exhibit
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** 2.1 Agreement and Plan of Merger dated as of April 1, 1997 between the
Registrant, Brooks Fiber Communications of Texas, Inc., Century
Telephone Enterprises, Inc. and Metro Access Networks, Inc.
** 23.1 Consent of KPMG Peat Marwick LLP
** 99.1 Press release issued by the Registrant on May 6, 1997
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** Previously filed.
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