EXHIBIT 99.3.3
VIRGINIA PCS ALLIANCE, L.C.
CONDENSED BALANCE SHEETS
June 30, 2000 and December 31, 1999
June 30, 2000 December 31, 1999
--------------- -------------------
(Unaudited)
ASSETS
Current Assets
Cash and cash equivalents $ 65,028 $ 64,052
Accounts receivable, net of allowance for doubtful accounts 2,153,668 1,790,159
of $900 and $600, respectively
Accounts receivable, other 792,123 867,376
Inventories 5,427,262 5,996,148
Prepaid expenses 173,295 522,798
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Total current assets 8,611,376 9,240,533
Subordinated Capital Certificates 4,529,491 4,522,811
Property and Equipment
Land and building 2,123,442 1,864,318
Network plant and equipment 67,590,491 73,920,705
Furniture, fixtures and other equipment 6,168,771 5,913,845
Radio spectrum licenses 32,714,384 32,714,384
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Total in service 108,597,088 114,413,252
Under construction 11,130,779 6,991,159
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119,727,867 121,404,411
Less accumulated depreciation 17,983,166 14,989,390
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101,744,701 106,415,021
Other Assets 1,023,999 663,374
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$ 115,909,567 $ 120,841,739
============= =============
LIABILITIES AND MEMBER'S EQUITY(DEFICIT)
Current Liabilities
Accounts payable $ 3,859,963 $ 3,737,845
Due to affiliates (2,009,533) 2,900,955
Dividends payable 229,146 229,138
Customer deposits 526,503 152,758
Advance billings 101,502 80,702
Accrued interest 163,561 355,970
Accrued payroll 119,136 98,680
Accrued taxes 122,376 39,676
Other accrued liabilities 48,347 37,075
------------- -------------
Total current liabilities 3,161,001 7,632,799
Long-Term Liabilities
Long-term debt 129,653,834 131,478,017
Other long term liabilities 9,571,713
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139,225,547 131,478,017
Redeemable Series A Preferred Membership Interests 15,632,020 15,191,674
Members' Equity (Deficit)
Series B preferred membership interests 19,328,298 15,094,337
Common membership interests (61,437,299) (48,555,088)
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(42,109,001) (33,460,751)
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$ 115,909,567 $ 120,841,739
============= =============
See Notes to Financial Statements
1
VIRGINIA PCS ALLIANCE, L.C.
CONDENSED STATEMENTS OF OPERATIONS
For the three months ending June 30, For the six months ending June 30,
2000 1999 2000 1999
--------------- ----------------- ------------- ----------------
(Unaudited) (Unaudited)
Operating revenues:
Subscriber revenue $ 3,165,886 $ 2,155,275 $ 5,792,706 $ 3,756,045
Wholesale revenue 2,096,356 996,675 3,835,861 1,820,888
Equipment revenue 376,506 246,352 798,726 606,004
------------ ------------ ------------ ------------
5,638,748 3,398,302 10,427,293 6,182,937
Operating expenses:
Cost of sales 2,255,300 1,125,308 4,464,852 2,851,259
Maintenance and support 2,073,568 2,015,804 4,054,184 3,356,498
Depreciation and amortization 1,779,650 2,527,430 3,855,039 4,695,048
Customer operations 2,377,528 2,134,793 4,770,010 3,853,446
Corporate operations 848,578 701,220 1,623,248 1,342,819
------------ ------------ ------------ ------------
9,334,624 8,504,555 18,767,333 16,099,070
------------ ------------ ------------ ------------
Operating loss (3,695,876) (5,106,253) (8,340,040) (9,916,133)
Interest expense
Interest expense (110,381) (194,537) (329,248) (219,113)
Senior credit facility (2,028,161) (1,334,367) (4,004,639) (2,558,902)
Redeemable preferred interest (488,621) (477,205) (974,324) (951,653)
------------ ------------ ------------ ------------
(2,627,163) (2,006,109) (5,308,211) (3,729,668)
------------ ------------ ------------ ------------
Net loss $ (6,323,039) $ (7,112,362) $(13,648,251) $(13,645,801)
============ ============ ============ ============
See Notes to Financial Statements
2
VIRGINIA PCS ALLIANCE, L.C.
CONDENSED STATEMENTS OF CASH FLOWS Six
Months Ended June 30, 2000 and 1999
2000 1999
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(Unaudited)
Cash Flows From Operating Activities
Net loss $ (13,648,251) $ (13,645,801)
Adjustments to reconcile net loss to net cash used in operating activities:
Depreciation 4,001,521 4,676,400
Amortization 23,860 18,649
Amortization of gain on tower sale (170,342)
Changes in assets and liabilities
(Increase) decrease in:
Accounts receivable (288,256) (2,014,115)
Inventories 568,886 (2,412,486)
Prepaid expenses 349,503 (266,185)
Increase (decrease) in:
Accounts payable, trade (501,068) (217,338)
Advance billings and customer deposits 394,545 26,270
Accrued interest (192,409) (198,225)
Accrued dividends on Series A Preferred 424,373 401,704
Other accrued liabilities 114,429 106,233
------------ ------------
Net cash used in operating activities (8,923,209) (13,524,894)
------------ ------------
Cash Flows From Investing Activities
Purchase of property and equipment (7,555,364) (11,944,100)
Proceeds of sale of towers 18,843,125 --
Increase in patronage capital certificates (379,502) --
Decrease (Increase) in deferred charges (242,725) 170,000
------------ ------------
Net cash provided by (used in) investing activities 10,665,534 (11,774,100)
------------ ------------
Cash Flows From Financing Activities
Capital contributions, net 5,000,002 5,000,000
Advances from (payments to) affiliates (4,910,488) (575,892)
Borrowings (Repayments) on revolving credit agreements, net (1,957,772) 12,024,644
Proceeds from long-term borrowings 126,909 8,852,294
------------ ------------
Net cash provided by (used in) financing activities (1,741,349) 25,301,046
------------ ------------
Net increase in cash and cash equivalents 976 2,052
Cash and Cash Equivalents:
Beginning 64,052 59,814
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Ending $ 65,028 $ 61,866
============= =============
See Notes to Financial Statements
3
VIRGINIA PCS ALLIANCE, L.C.
CONDENSED STATEMENTS OF MEMBERS' EQUITY (DEFICIT)
(Unaudited)
Series B
Preferred Common
Membership Membership
Interests Interests Total
------------ ------------- -------------
Balance as of January 1, 1999 $ 10,860,376 $ (23,181,853) $ (12,321,477)
Capital contributions 4,233,961 766,039 5,000,000
Net loss - (6,533,439) (6,533,439)
------------ ------------- -------------
Balance as of March 31, 1999 15,094,337 (28,949,253) (13,854,916)
Net loss - (7,112,357) (7,112,357)
------------ ------------- -------------
Balance as of June 30, 1999 15,094,337 (36,061,610) (20,967,273)
Net loss - (6,244,336) (6,244,336)
------------ ------------- -------------
Balance as of September 30, 1999 15,094,337 (42,305,946) (27,211,609)
Net loss - (6,249,142) (6,249,142)
------------ ------------- -------------
Balance as of December 31, 1999 15,094,337 (48,555,088) (33,460,751)
Capital contributions 4,233,961 766,039 5,000,000
Net loss - (7,325,211) (7,325,211)
------------ ------------- -------------
Balance as of March 31, 2000 19,328,298 (55,114,260) (35,785,962)
Net loss - (6,323,039) (6,323,039)
------------ ------------- -------------
Balance as of June 30, 2000 $ 19,328,298 $ (61,437,299) $ (42,109,001)
============ ============= =============
See Notes to Financial Statements
4
VIRGINIA PCS ALLIANCE L.C.
--------------------------
Notes to Financial Statements
-----------------------------
(1) In the opinion of the managing member of the Alliance, the accompanying
financial statements which are unaudited, except for the balance sheet
dated December 31, 1999, contain all adjustments (consisting of only
normal recurring accruals) necessary to present fairly the financial
position as of June 30, 2000 and December 31, 1999 and the results of
operations for the three and six months ended June 30, 2000 and 1999 and
cash flows for the six months ended June 30, 2000 and 1999. The results
of operations for the three and six months ended June 30, 2000 and 1999
are not necessarily indicative of the results to be expected for the
full year.
(2) In March 2000, the Alliance sold 56 towers for $17.9 million to Crown
Castle International Corp (Crown). In April 2000, the Alliances sold a
total of 3 towers for $1.0 million to Crown. In connection with these
transactions, the Alliance has certain future leaseback and other
commitments. Accordingly, these gains have been deferred for book
purposes and will be amortized over the life of the leaseback agreement.
(3) In January 2000, the members contributed $5.0 million to the Alliance,
purchasing 34,820 Common Units for $0.8 million and 192,452.7 Series B
Preferred Membership Units for approximately $4.2 million.
(4) In July 2000, the Alliance redeemed its series A preferred membership
interest for $16.8 million. This payment included consideration for
redemption of $12.9 million in principle, $2.8 million in accrued
interest and $1.1 million in early redemption fees. CFW Communications
Company and R&B Communications exercised their right to fund $12.9
million of this redemption in exchange for additional common ownership
interest in the Alliance. CFW and R&B also elected to convert their
Series B convertible preferred ownership interest in the Alliance into
common ownership interest. These redemptions and conversions increased
the common ownership interest of CFW Communications Company from 21% to
65% and R&B Communications from 21% to 26%.
In July, the Alliance borrowed $114.9 million from CFW Communications
Company (CFW) to payoff its indebtedness to the Rural Telephone Finance
Cooperative (RTFC). The payoff included a prepayment fee of $.5 million.
The Alliance's debt obligation to CFW bears interest at a rate equal to
CFW's borrowing rate under its Senior Credit Facility (10.6% in July
2000) and matures in 2008.
5