<PAGE>
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
Form 10-Q
(Mark One)
[X] QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934.
For the quarterly period ended December 29, 1996
-----------------
OR
[ ] TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934.
For the transition period from to
------------ -----------
Commission file number 0-24334
--------------------
AMERILINK CORPORATION
---------------------
(Exact name of registrant as specified in its charter)
Ohio 31-1409345
- ------------------------------ ------------------------------------
(State of other jurisdiction of (I.R.S. Employer Identification No.)
incorporation or organization)
1900 E. Dublin-Granville Road, Columbus, Ohio 43229
----------------------------------------------------
(Address of principal executive offices, including zip code)
(614) 895-1313
-------------------------------------------------------
(Registrant's telephone number, including area code)
Indicate by check mark whether the registrant (1) has filed all reports required
to be filed by Section 13 or 15(d) of the Securities Exchange Act Of 1934 during
the preceding 12 months (or for such shorter period that the registrant was
required to file such reports), and (2) has been subject to such filing
requirements for the past 90 days.
Yes X . No .
------ ------
3,478,580 shares of common stock were outstanding as of February 5, 1997
1
<PAGE>
AMERILINK CORPORATION
QUARTERLY REPORT FOR THE QUARTER ENDED DECEMBER 29, 1996
Index Page No.
----- --------
PART I: FINANCIAL INFORMATION
Item 1 - Financial Statements
Consolidated Balance Sheets as of March 31, 1996 and
December 29, 1996 (Unaudited) 3
Consolidated Statements of Income (Unaudited) for the
thirty-nine weeks ended December 31, 1995 and
December 29, 1996 4
Consolidated Statements of Income (Unaudited) for the
thirteen weeks ended December 31, 1995 and
December 29, 1996 5
Consolidated Statement of Changes in Shareholders' Equity
(Unaudited) for the thirty-nine weeks ended
December 29, 1996 6
Consolidated Statements of Cash Flows (Unaudited) for the
thirty-nine weeks ended December 31, 1995 and
December 29, 1996 7
Notes to Consolidated Financial Statements 8
Item 2 - Management's Discussion and Analysis of
Financial Condition and Results of Operations 9-12
PART II: OTHER INFORMATION
Items 1-6 13
Signatures 14
2
<PAGE>
AMERILINK CORPORATION
CONSOLIDATED BALANCE SHEETS
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
March 31, 1996 December 29, 1996
- ----------------------------------------------------------------------------------------
(unaudited)
<S> <C> <C>
ASSETS
Current assets:
Cash and cash equivalents $ 78,680 $ 146,506
Accounts receivable-trade, net of allowance for
doubtful accounts of $95,000 and $98,000 8,899,443 12,785,322
Work-in-process 2,902,617 4,500,140
Materials and supply inventories 1,710,084 1,439,055
Other receivables 221,659 268,932
Deferred tax benefit 127,286 127,286
Other 510,263 187,631
------------- -------------
Total current assets 14,450,032 19,454,872
Property and equipment - net 6,032,551 5,791,184
Deposits and other assets 71,217 171,355
------------- -------------
Total assets $ 20,553,800 $ 25,417,411
------------- -------------
------------- -------------
LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities:
Trade accounts payable $ 1,802,121 $ 2,016,391
Liability to subcontractors 1,083,186 1,415,364
Accrued compensation and related expenses 1,078,935 1,267,149
Accrued insurance 536,872 346,590
Other 160,952 191,283
Current maturities of long-term debt 720,000 249,190
------------- -------------
Total current liabilities 5,382,066 5,485,967
Long-term debt, less current maturities 5,843,227 9,575,000
Deferred income taxes 117,839 117,839
------------- -------------
Total liabilities 11,343,132 15,178,806
Shareholders' equity:
Preferred stock, without par; 1,000,000
shares authorized; none issued
or outstanding ---- ----
Common stock, without par; 10,000,000
shares authorized; 3,478,580 shares
issued and outstanding 8,061,395 8,061,395
Retained earnings 1,149,273 2,177,210
------------- -------------
Total shareholders' equity 9,210,668 10,238,605
------------- -------------
Total liabilities and shareholders' equity $ 20,553,800 $ 25,417,411
------------- -------------
------------- -------------
</TABLE>
- --------------------------------------------------------------------------------
See notes to financial statements.
3
<PAGE>
AMERILINK CORPORATION
CONSOLIDATED STATEMENTS OF INCOME
(UNAUDITED)
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
Thirty-nine Weeks Ended
December 31, 1995 December 29, 1996
- --------------------------------------------------------------------------------
Revenues $ 43,119,537 $ 45,915,307
Cost of sales 30,113,634 30,384,268
------------ ------------
Gross profit 13,005,903 15,531,039
Selling, general and administrative
expenses 11,758,263 13,364,015
------------ ------------
Income from operations 1,247,640 2,167,024
Interest expense (387,990) (461,106)
Other income 27,323 7,019
------------ ------------
Income before income taxes 886,973 1,712,937
Provision for income taxes 314,000 685,000
------------ ------------
Net income $ 572,973 $ 1,027,937
------------ ------------
------------ ------------
Net income per common share $ 0.16 $ 0.29
------------ ------------
------------ ------------
Weighted average common shares
outstanding 3,626,210 3,591,514
- --------------------------------------------------------------------------------
See notes to financial statements.
4
<PAGE>
AMERILINK CORPORATION
CONSOLIDATED STATEMENTS OF INCOME
(UNAUDITED)
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
Thirteen Weeks Ended
December 31, 1995 December 29, 1996
- --------------------------------------------------------------------------------
Revenues $ 15,661,152 $ 16,731,323
Cost of sales 10,795,421 10,880,892
------------ ------------
Gross profit 4,865,731 5,850,431
Selling, general and administrative
expenses 4,384,851 4,841,170
------------ ------------
Income from operations 480,880 1,009,261
Interest expense (164,737) (182,400)
Other income 24,656 3,191
------------ ------------
Income before income taxes 340,799 830,052
Provision for income taxes 96,000 332,000
------------ ------------
Net income $ 244,799 $ 498,052
------------ ------------
------------ ------------
Net income per common share $ 0.07 $ 0.14
------------ ------------
------------ ------------
Weighted average common shares
outstanding 3,615,352 3,543,033
- --------------------------------------------------------------------------------
See notes to financial statements.
5
<PAGE>
AMERILINK CORPORATION
CONSOLIDATED STATEMENT OF CHANGES IN SHAREHOLDERS' EQUITY
FOR THE THIRTY-NINE WEEKS ENDED DECEMBER 29, 1996
(UNAUDITED)
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
Number Common Retained
of Shares Stock Earnings Total
- --------------------------------------------------------------------------------
Balance at March 31, 1996 3,478,580 $ 8,061,395 $ 1,149,273 $ 9,210,668
Net income ---- ---- 1,027,937 1,027,937
--------- ----------- ----------- -----------
Balance at December 29, 1996 3,478,580 $ 8,061,395 $ 2,177,210 $10,238,605
--------- ----------- ----------- -----------
--------- ----------- ----------- -----------
- --------------------------------------------------------------------------------
See notes to financial statements.
6
<PAGE>
AMERILINK CORPORATION
CONSOLIDATED STATEMENTS OF CASH FLOWS
(UNAUDITED)
<TABLE>
<CAPTION>
- -----------------------------------------------------------------------------------------
- -----------------------------------------------------------------------------------------
Thirty-nine Weeks Ended
December 31, 1995 December 29, 1996
- -----------------------------------------------------------------------------------------
<S> <C> <C>
OPERATING ACTIVITIES
Net income $ 572,973 $ 1,027,935
Adjustments to reconcile net income
to net cash used in operating activities:
Depreciation and amortization 1,426,478 1,597,738
Net gain on disposal of fixed assets (37,536) (26,143)
Gain on investments (23,534) --
Deferred income taxes (30,324) --
Changes in operating assets and liabilities:
Accounts receivable and work-in-process (2,922,386) (5,483,402)
Materials and supply inventories (336,154) 271,029
Other receivables (7,993) (47,273)
Other current assets (33,744) 322,632
Trade accounts payable 798,213 214,272
Liability to subcontractors 30,390 332,178
Accrued compensation and related expenses 204,686 188,214
Accrued insurance (193,915) (190,282)
Other current liabilities (320) 30,331
----------- -----------
Net cash used in operating activities (553,166) (1,762,771)
INVESTING ACTIVITIES
Purchase of property and equipment (3,241,850) (1,947,346)
Proceeds from sale of property and equipment 171,516 617,118
Deposits and other assets 225,925 (100,138)
----------- -----------
Net cash used in investing activities (2,844,409) (1,430,366)
FINANCING ACTIVITIES
Principal payments on long-term debt (11,915,000) (12,745,000)
Proceeds from borrowings on long-term debt 15,375,000 16,005,963
----------- -----------
Net cash provided by financing activities 3,460,000 3,260,963
----------- -----------
Increase in cash and cash equivalents 62,425 67,826
Cash and cash equivalents at beginning of period 71,944 78,680
----------- -----------
Cash and cash equivalents at end of period $ 134,369 $ 146,506
----------- -----------
----------- -----------
SUPPLEMENTAL CASH FLOW DISCLOSURES
Interest paid $ 388,709 $ 465,223
Income taxes paid $ 424,149 $ 294,932
- -----------------------------------------------------------------------------------------
</TABLE>
See notes to financial statements.
7
<PAGE>
AMERILINK CORPORATION
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(UNAUDITED)
1. BASIS OF PRESENTATION
AmeriLink Corporation (the "Company") is a nationwide provider of
cabling systems for the transmission of video, voice and data. The Company
offers its services on a national basis to providers of telecommunications
services, including: cable television multiple system operators ("MSO"s);
traditional telephone service providers ("TELCOs"), including local exchange
carriers ("LEC"s) and long distance carriers; competitive access providers
("CAPS"); Direct Broadcast Satellite ("DBS") providers; and users of Local
Area Network ("LAN") systems. The Company's cabling services include the
designing, constructing, installing and maintaining of fiber optic, copper
and coaxial cabling systems. The Company provides these services
predominately through the use of independent contractors via its national
network of regional and satellite field offices.
These financial statements have been prepared in accordance with
generally accepted accounting principles for interim financial information
and with the instructions to Form 10-Q and Article 10 of Regulation S-X.
Accordingly, they do not include all information and footnotes required by
generally accepted accounting principles for complete financial statements.
These financial statements should be read in conjunction with the March 31,
1996 audited financial statements of AmeriLink Corporation contained in its
Annual Report to Shareholders.
The financial information included herein reflects all adjustments
(consisting of normal recurring adjustments) which are, in the opinion of
management, necessary for a fair presentation of the results for interim
periods. The results of operations for the thirty-nine weeks ended December
29, 1996 are not necessarily indicative of the results to be expected for the
full year.
2. INCOME TAXES
The provision for income taxes for the thirteen and thirty-nine weeks
ended December 31, 1995 includes a benefit of approximately $40,000 due to
the adjustment of deferred tax balances.
3. NET INCOME PER SHARE
Net income per share is calculated by dividing net income by the
weighted average shares outstanding for the period presented, including, when
their effect is dilutive, common stock equivalents consisting of shares
subject to stock options.
4. NOTES PAYABLE AND LONG-TERM DEBT
On September 27, 1996, the Company amended its credit agreement with its
commercial bank. Under the agreement, the Company has a $12,000,000 unsecured
revolving credit note and an unsecured term note. The interest rate on the
revolving credit note is prime minus 1% and interest is payable monthly. The
revolving credit note matures September 30, 1998 and includes a commitment
fee of 1/4% on any unused portion of the note. Borrowings under the revolving
credit note were $9,575,000 at December 29, 1996.
The unsecured term note in the amount of $1,629,190 matures May 31,
1997. Interest is payable monthly at the rate of prime. The balance of the
unsecured term note at December 29, 1996 was $249,190.
8
<PAGE>
MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL
CONDITION AND RESULTS OF OPERATIONS
RESULTS OF OPERATIONS
COMPARISONS OF THIRTY-NINE WEEKS ENDED DECEMBER 31, 1995 AND DECEMBER 29, 1996
REVENUES
Total revenues for the first nine months of fiscal 1997 were $45,915,307
compared to $43,119,537 for the first nine months of fiscal 1996, an increase
of 6.5%.
Total residential and commercial premises wiring revenues
(non-construction cabling services) for the first nine months of fiscal 1997
increased 38% to approximately $38.4 million compared to approximately $27.7
million in fiscal 1996. Revenues from local area network cabling services
almost doubled during the first nine months of fiscal 1997 to approximately
$10.8 million (vs. $5.6 million during the comparable period in fiscal 1996)
due to increased marketing efforts by the Company for these services. In
addition, premises wiring revenues derived from telephone companies increased
to approximately $4.9 million for the first nine months of fiscal 1997
compared to approximately $1.2 million for the corresponding period last
year. The Company believes that as a result of the Telecommunications Act of
1996, certain telephone companies have increased their capital expenditures
for video systems, and the Company has aggressively marketed its services to
these companies.
Outside plant construction revenues for the first nine months of fiscal
1997 declined to approximately $7.5 million from approximately $15.4 million
during the comparable period in fiscal 1996. The decrease in outside plant
construction revenues reflects management's strategy to de-emphasize these
services.
GROSS PROFIT
Gross profit for the first nine months of fiscal 1997 was $15,531,039,
or 33.8% of revenues, as compared to $13,005,903, or 30.2% of revenues, for
the corresponding period last year.
The increase in gross margin for the first nine months of fiscal 1997
can primarily be attributed to the emphasis on premises wiring projects over
outside plant construction projects. Outside plant construction projects
require the use of heavy machinery, specialized trucks, tool systems, and
other related construction equipment which reduce the Company's gross margin.
During the first nine months of fiscal 1996, the Company's overall operating
results were negatively impacted by operating losses incurred on a large
construction project in the San Diego area. These operating losses totaled
approximately $(450,000), due primarily to high vehicle, equipment, and
production costs, on contract revenues of approximately $4.1 million. The
Company's overall operating results for the first six months of fiscal 1997
were negatively impacted by operating losses of approximately ($370,000) as a
result of the Company's decision to close its San Diego regional office and
the completion of remaining outside plant construction projects there.
SELLING, GENERAL AND ADMINISTRATIVE
Selling, general, and administrative expenses for the first nine months
of fiscal 1997 were $13,364,015 or 29.1% of revenues as compared to
$11,758,263 or 27.3% of revenues for the corresponding period last year.
The Company's selling, general and administrative cost structure, which
consists primarily of field employee wages and payroll costs, is maintained
at levels necessary to adequately support both anticipated near term revenues
and projected longer term revenues. These anticipated revenue levels and
associated cost structures may vary among the Company's regional field
offices and geographic market areas. The dollar
9
<PAGE>
increase in selling, general, and administrative expenses for the first nine
months of fiscal 1997 is primarily due to increased employee wages and
associated costs incurred to support both current period revenues and
anticipated future revenues. Selling, general, and administrative expenses
also include additional amounts for sales personnel engaged in marketing the
Company's local area network cabling services. The Company's selling, general
and administrative expenses during the current fiscal year were also impacted
by a charge to bad debts of $234,000 as a result of a customer filing for
protection under Chapter 11 of the Bankruptcy Code.
INTEREST EXPENSE
Interest expense was $461,106 or 1.0% of revenues for the first nine months
of fiscal 1997 as compared to $387,990 or 0.9% of revenues for the first nine
months of fiscal 1996.
The dollar increase in interest expense is primarily due to increased
borrowings to finance accounts receivable and work-in-process.
COMPARISONS OF THIRTEEN WEEKS ENDED DECEMBER 31, 1995 AND DECEMBER 29, 1996
REVENUES
Third quarter revenues for fiscal 1997 rose 6.8% to a record level of
$16,731,323 as compared to $15,661,152 for the third quarter of fiscal 1996.
Total residential and commercial premises wiring revenues comprised
approximately 88% of third quarter revenues vs. approximately 67% of third
quarter revenues for the prior period. Premises wiring revenues from
telephone companies made a large impact during the third quarter of fiscal
1997 increasing to an all time high of approximately $3.5 million from
approximately $0.9 million in the corresponding period last year. The Company
believes the increase in these revenues is attributed to the passage of the
Telecommunications Act of 1996, which has resulted in certain telephone
companies increasing their capital spending for video systems, and to the
Company's marketing efforts to provide its services to these Telco providers.
Premises wiring revenues from local area network services for the third
quarter of fiscal 1997 posted a 55% increase to approximately $3.0 million
compared to approximately $1.9 million in the corresponding period a year ago.
Outside plant construction revenues for the third quarter of fiscal 1997
were approximately $2.0 million compared to approximately $5.1 million for
the third quarter of fiscal 1996. This decrease is consistent with the
Company's strategy of focusing its marketing efforts on premises wiring
services.
GROSS PROFIT
Gross profit for the third quarter of fiscal 1997 was $5,850,431 or 35% of
revenues as compared to $4,865,731, or 31.1% of revenues for the
corresponding period last year.
The increase in gross margin for the third quarter of fiscal 1997 can
principally be attributed to a decrease in vehicle and equipment costs as a
result of a reduction of outside plant construction projects. These projects
require the use of heavy machinery, specialized trucks, tool systems and
other related construction equipment. During the third quarter of fiscal
1996, the Company's overall operating results were negatively impacted by
operating losses incurred on a large construction project in the San Diego
area. These operating losses totaled approximately $(230,000), due mainly to
high vehicle, equipment and production costs, on contract revenues of
approximately $1.1 million.
SELLING, GENERAL AND ADMINISTRATIVE
Selling, general and administrative expenses for the third quarter of
fiscal 1997 were $4,841,170 or 28.9% of revenues as compared to $4,384,851 or
28% of revenues for the corresponding period last year.
10
<PAGE>
The dollar increase in selling, general and administrative expenses is
principally due to increased employee payroll and associated costs incurred
to support both actual and anticipated increased revenues. Third quarter
selling, general and administrative expenses for fiscal 1997 were negatively
impacted by a charge of $134,000 as a result of a customer filing for
protection under Chapter 11 of the Bankruptcy Code.
INTEREST EXPENSE
Interest expense was $182,400, or 1.1% of revenues for the third quarter
of fiscal 1997, as compared to $164,737, or 1.1% of revenues for the third
quarter of fiscal 1996.
The dollar increase in interest expense is primarily due to increased
borrowings needed to finance accounts receivable and work-in-process.
LIQUIDITY AND CAPITAL RESOURCES
GENERAL. Historically, the Company's principal sources of liquidity have
come from operating cash flow and credit arrangements. The Company's primary
requirements for working capital are to finance accounts receivable,
work-in-process and capital expenditures. Pursuant to a typical construction,
MDU (multiple dwelling unit) installation, or LAN cabling contract, work
performed by the Company is generally not billed to a customer until various
stages in a project are complete or until the entire project is complete.
Because the Company pays its suppliers and subcontractors on a current basis,
to the extent that trade payables exceed customer accounts paid at any given
time, the Company draws on its revolving credit note to finance its
work-in-process until project work is billed to and paid by the customer.
Combined accounts receivable and work-in-process at December 29, 1996
totaled $17,285,462, as compared to $13,554,662 at December 31, 1995, an
increase of $3,730,800 or 28%. This increase is due to a number of factors,
including a general increase in revenues and increases in the Company's
volume of MDU projects and LAN cabling contracts. The Company anticipates
that it will continue to receive collections of its accounts receivable in
the ordinary course of business in sufficient amounts to permit it to comply
with all covenants and terms of its revolving credit note. As of January 31,
1997, the Company received subsequent collections of accounts receivable
balances which allowed for the reduction of approximately $2.7 million from
its revolving credit note. There is no assurance, however, that the Company
will be able to collect all or substantially all of its accounts receivable
outstanding at any time, although the Company believes it has adequately
provided for potential losses through its allowance for doubtful accounts. The
Company's failure to collect substantially all of its accounts receivable and
work-in-process would have an adverse impact on its working capital and could
adversely affect its results of operations.
Capital requirements are dependent upon a number of factors, including the
Company's revenues, level of operations, and the type of contracts and work
that the Company performs. Due to the fact that the Company generally has no
extended commitments from its customers, it is difficult to forecast longer
term revenues and associated capital expenditure and operating cash
requirements.
Management believes that current and possible additional credit from its
commercial bank, cash flow from operations, and funds which may be obtained
from the issuance of common stock should provide sufficient capital to meet
the reasonably foreseeable business needs of the Company.
CURRENT CREDIT ARRANGEMENTS. Under a credit agreement with its commercial
bank that was amended September 27, 1996, the Company has a $12,000,000
unsecured revolving credit note and an unsecured term note. The interest rate
on the revolving credit note is prime minus 1% and interest is payable
monthly. The revolving credit note matures September 30, 1998 and includes a
commitment fee of 1/4% on any unused portion of the note. Borrowings under
the revolving credit note were $9,575,000 at December 29, 1996 and $6,925,000
at January 31, 1997.
The unsecured term note in the amount of $1,629,190 matures May 31, 1997.
Interest is payable monthly at the bank's prime rate. The balance of the
unsecured term note at December 29, 1996 was $249,190.
11
<PAGE>
CASH FLOW FROM OPERATING ACTIVITIES. For the first nine months of fiscal
1997, net cash used in operating activities totaled $1,762,771. This is
principally the result of increases in accounts receivable and
work-in-process that were not offset by corresponding increases in trade
accounts payable and liabilities to subcontractors. The Company is limited in
its ability to offset increases in accounts receivable and work-in-process
through increases in accounts payable or liabilities to subcontractors.
CASH FLOW FROM INVESTING ACTIVITIES. For the first nine months of fiscal
1997, net cash used in investing activities totaled $1,430,366. This was
mainly due to the purchase of property and equipment that totaled $1,947,346
for the first nine months of fiscal 1997. The level of capital expenditures is
dependent largely upon the level of construction services that the Company
performs. The Company uses heavy machinery, specialized trucks, and other
construction equipment to perform its construction services. Capital
expenditures for the first nine months of fiscal 1997 have decreased
approximately $1.3 million or 40% as compared to the corresponding period
last year. This decrease is the result of the Company doing less outside
plant construction work in fiscal 1997.
SEASONALITY AND VARIABILITY IN QUARTERLY RESULTS
The Company has no long-term contractual commitments to provide its
services. The contractual commitments which do exist generally can be
terminated on 30 days notice. These contractual commitments do not involve a
firm backlog of committed work because the nature of the Company's contracts
with MSOs, CAPs, Telcos and DBS providers produce daily work orders only on a
project-by-project basis which must be funded by an approved purchase order.
In addition, the Company's operations historically have been influenced by
the budget cycles of the Company's customers and by the impact of weather
conditions. Most of the Company's customers utilize a calendar year budget
cycle, funded with quarterly purchase authorizations, which in certain fiscal
years has resulted in a lack of availability of funds in the Company's third
fiscal quarter and has delayed work authorizations in the Company's fourth
fiscal quarter. Weather can affect the amount of construction cabling
services provided by the Company since they are performed outdoors. Weather
can also impact the Company's non-construction cabling services due to the
limited and lost production associated with poor driving conditions and
generally difficult working environments. Additionally, the construction of
new and the rebuilding of existing aerial and underground cable systems is
dependent on the cable television and the telephone industries' demands,
which may fluctuate on a seasonal basis.
INFLATION
Historically, inflation has not been a significant factor to the Company as
labor is the primary cost of operations and its contracts are typically
short-term in nature. On an ongoing basis, the Company attempts to minimize
any effects of inflation on its operating results by controlling operating
costs and, whenever possible, seeking to insure that selling prices reflect
increases in costs due to inflation.
ENVIRONMENTAL MATTERS
The Company anticipates that its compliance with various laws and
regulations relating to the protection of the environment will not have a
material effect on its capital expenditures, future earnings or competitive
position.
CAUTION CONCERNING FORWARD-LOOKING STATEMENTS
The Company cautions that this report contains forward-looking statements
(as such term is defined in the Private Securities Litigation Act of 1995)
and cautions further that any forward-looking statements contained in this
Report or made by management of the Company involve risks and uncertainties,
and are subject to change based on various important factors. These important
factors include, among others, the risk of changing market conditions and
customer purchase authorizations, competitive and regulatory risks associated
with the telecommunications industry, and other risks described in the
Company's Securities and Exchange Commission filings.
12
<PAGE>
AMERILINK CORPORATION
PART II - OTHER INFORMATION
Item 1. LEGAL PROCEEDINGS. NOT APPLICABLE
Item 2. CHANGE IN SECURITIES. NOT APPLICABLE
Item 3. DEFAULTS UPON SENIOR SECURITIES. NOT APPLICABLE
Item 4. SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS. NOT APPLICABLE
Item 5. OTHER INFORMATION. NOT APPLICABLE
Item 6. EXHIBITS AND REPORTS ON FORM 8-K.
(a) Exhibits
Exhibit No. Description
----------- -----------
27 Financial Data Schedule filed herewith
as part of this report on Form 10-Q.
(b) No reports on Form 8-K have been filed
during the quarter ended December 29, 1996.
13
<PAGE>
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the
Registrant has july caused this report to be signed on its behalf by the
undersigned thereunto duly authorized.
AMERILINK CORPORATION
(Registrant)
Date: February 10, 1997 By: /s/ Larry R. Linhart
---------------------------------
Larry R. Linhart
Chief Executive Officer
President
Date: February 10, 1997 By: /s/ James W. Brittan
---------------------------------
James W. Brittan
Vice President of Finance
(Principal Financial and Accounting
Officer)
14
<TABLE> <S> <C>
<PAGE>
<ARTICLE> 5
<LEGEND>
THIS SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM THE BALANCE
SHEET AS OF DECEMBER 29, 1996 AND STATEMENT OF OPERATIONS FOR THE THIRTY-NINE
WEEKS ENDED DECEMBER 29, 1996 OF AMERILINK CORPORATION AND IS QUALIFIED IN ITS
ENTIRETY BY REFERENCE TO SUCH FINANCIAL STATEMENTS.
</LEGEND>
<S> <C>
<PERIOD-TYPE> 9-MOS
<FISCAL-YEAR-END> MAR-30-1997
<PERIOD-START> APR-01-1996
<PERIOD-END> DEC-29-1996
<CASH> 146,506
<SECURITIES> 0
<RECEIVABLES> 12,883,322
<ALLOWANCES> 98,000
<INVENTORY> 1,439,055
<CURRENT-ASSETS> 19,454,872
<PP&E> 5,791,184<F1>
<DEPRECIATION> 0<F1>
<TOTAL-ASSETS> 25,417,411
<CURRENT-LIABILITIES> 5,485,967
<BONDS> 9,575,000
0
0
<COMMON> 8,061,395
<OTHER-SE> 2,177,210
<TOTAL-LIABILITY-AND-EQUITY> 25,417,411
<SALES> 45,915,307
<TOTAL-REVENUES> 45,915,307
<CGS> 30,384,268
<TOTAL-COSTS> 43,748,283
<OTHER-EXPENSES> (7,019)
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 461,106
<INCOME-PRETAX> 1,712,937
<INCOME-TAX> 685,000
<INCOME-CONTINUING> 1,027,937
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 1,027,937
<EPS-PRIMARY> 0.29
<EPS-DILUTED> 0.29
<FN>
<F1>PROPERTY, PLANT, AND EQUIPMENT IS REPORTED NET OF ACCUMULATED DEPRECIATION ON
THE CONSOLIDATED BALANCE SHEET
</FN>
</TABLE>
