EXHIBIT 99.3
WEST VIRGINIA PCS ALLIANCE, L.C.
CONDENSED BALANCE SHEETS
September 30, 2000 and December 31, 1999
September 30, 2000 December 31, 1999
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ASSETS (Unaudited)
Current Assets
Cash and cash equivalents............................ $ 10,152 $ 8,120
Accounts receivable, net of allowance................ 3,058,047 832,763
Accounts receivable, other........................... 333,100 175,376
Inventories.......................................... 1,019,977 1,281,241
Prepaid expenses..................................... 67,880 69,049
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Total current assets............................ 4,489,157 2,366,549
Subordinated Capital Certificates - 2,506,255
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Property and Equipment
Land and building.................................. 948,060 942,988
Network plant and equipment........................ 28,283,642 33,898,373
Furniture, fixtures and other equipment............ 2,093,425 1,330,005
Radio spectrum licenses............................ 6,447,045 6,132,100
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Total in service................................... 37,772,171 42,303,466
Under construction................................. 20,080,653 5,436,007
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57,852,824 47,739,473
Less accumulated depreciation...................... 3,991,439 2,317,215
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53,861,386 45,422,258
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Other Assets
Radio spectrum licenses............................ 2,870,928 2,844,772
Other.............................................. 334,297 356,894
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3,205,225 3,201,666
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$ 61,555,768 $ 53,496,728
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LIABILITIES AND MEMBER'S DEFICIT
Current Liabilities
Accounts payable................................... $ 3,112,168 $ 1,819,567
Due to affiliates.................................. - 1,059,198
Advance billings................................... 79,372 27,550
Accrued interest................................... - 5,434
Accrued payroll.................................... 128,089 59,797
Other accrued liabilities.......................... 114,648 104,530
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Total current liabilities.......................... 3,434,277 3,076,076
Long-Term Liabilities
Long-term debt..................................... - 51,125,102
Due to affiliates.................................. 57,458,122 -
Other long term liabilities........................ 12,835,727 -
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70,293,849 51,125,102
Members' Deficit
Common membership interests........................ (12,172,358) (704,450)
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$ 61,555,768 $ 53,496,728
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See Notes to Condensed Financial Statements
WEST VIRGINIA PCS ALLIANCE, L.C.
CONDENSED STATEMENTS OF OPERATIONS
(Unaudited)
For the three months ending September 30, For the nine months ending September 30,
2000 1999 2000 1999
---- ---- ---- ----
Operating revenues:
Subscriber revenue........ $ 3,008,138 $ 578,169 $ 7,380,764 $ 985,111
Wholesale revenue......... 763,065 136,916 1,534,637 136,916
Equipment sales........... 185,602 160,401 954,511 352,413
--------------- --------------- -------------- -------------
3,956,804 875,486 9,869,912 1,474,440
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Operating expenses:
Cost of sales............. 2,196,983 701,588 6,469,790 1,401,017
Maintenance and support... 1,803,909 1,109,912 4,818,571 2,969,571
Depreciation and amortization... 549,451 648,209 1,713,331 1,339,888
Customer operations....... 1,598,692 993,023 5,103,761 2,568,008
Corporate operations...... 499,123 262,004 1,525,593 1,268,057
--------------- --------------- -------------- -------------
6,648,158 3,714,736 19,631,047 9,546,541
--------------- --------------- -------------- -------------
Operating loss................. (2,691,354) (2,839,250) (9,761,135) (8,072,101)
Interest income (expense):
Interest income .......... (1,348,383) 126,238 (1,009,127) 385,741
Interest expense, net..... (294,529) (433,090) (2,118,646) (908,730)
--------------- --------------- -------------- -------------
(1,642,912) (306,852) (3,127,773) (522,989)
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Net loss.................. $ (4,334,266) $ (3,146,102) $ (12,888,908) $ (8,595,090)
=============== =============== ============== =============
See Notes to Condensed Financial Statements
WEST VIRGINIA PCS ALLIANCE, L.C.
CONDENSED STATEMENTS OF CASH FLOWS
Nine Months Ended September 30, 2000 and 1999
(Unaudited)
2000 1999
---- ----
Cash Flows From Operating Activities
Net loss................................................................... $ (12,888,908) $ (8,595,090)
Adjustments to reconcile net loss to net cash used in operating activities:
Depreciation............................................................. 2,124,439 1,299,642
Amortization............................................................. 5,481 40,246
Amortization of gain on tower sale....................................... (416,589)
Changes in assets and liabilities........................................
(Increase) decrease in:....
Accounts receivable............................................... (2,383,008) (636,376)
Inventories....................................................... 261,264 (4,350,894)
Prepaid expenses.................................................. 1,169 (88,787)
Increase (decrease) in:
Accounts payable, trade........................................... 1,292,601 2,020,128
Advance billings and customer deposits............................ 51,822 1,269
Accrued interest.................................................. (5,434) 283
Other accrued liabilities......................................... 78,410 94,698
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Net cash used in operating activities........................ (11,878,753) (10,214,880)
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Cash Flows From Investing Activities
Purchase of property and equipment...................................... (22,823,937) (17,722,889)
Proceeds from sale of towers............................................ 25,782,961 -
Increase in patronage capital certificates.............................. (192,718) -
Decrease (increase) in deferred charges/credits......................... (277,147) (82,733)
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Net cash provided by (used in) investing activities.......... 2,489,159 (17,805,662)
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Cash Flows From Financing Activities
Capital contributions, net.............................................. 1,421,000 1,421,000
Advances from (Repayments to) affiliates................................ 56,398,924 (2,792,711)
Repayments on revolving credit agreements, net.......................... (1,000,000) (1,000,000)
Proceeds (Repayments) from long-term borrowings......................... (47,428,297) 30,392,680
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Net cash provided by financing activities.............................. 9,391,627 28,020,969
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Net increase in cash and cash equivalents............................ 2,032 426
Cash and cash equivalents:
Beginning.................................................................... 8,120 10,254
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Ending....................................................................... $ 10,152 $ 10,680
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See Notes to Condensed Financial Statements
WEST VIRGINIA PCS ALLIANCE, L.C.
CONDENSED STATEMENTS OF MEMBERS' EQUITY (DEFICIT)
(Unaudited)
Common
Membership
Interests
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Balance as of January 1, 1999....................... $ 11,162,026
Capital contributions........................ 1,421,000
Net loss..................................... (2,179,278)
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Balance as of March 31, 1999........................ 10,403,748
Net loss..................................... (3,269,708)
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Balance as of June 30, 1999......................... 7,134,040
Net loss..................................... (3,146,097)
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Balance as of September 30, 1999................... 3,987,943
Net loss..................................... (4,692,393)
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Balance as of December 31, 1999..................... (704,450)
Capital contributions........................ 1,421,000
Net loss..................................... (4,805,274)
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Balance as of March 31, 2000........................ (4,088,724)
Net loss..................................... (3,749,368)
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Balance as of June 30, 2000......................... (7,838,092)
Net loss (4,334,266)
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Balance as of September 30, 2000.................... $ (12,172,358)
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See Notes to Condensed Financial Statements
WEST 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 September 30, 2000, and December 31, 1999, and the results of operations
for the three and nine months ended September 30, 2000 and 1999 and cash
flows for the nine months ended September 30, 2000 and 1999. The results of
operations for the three and nine months ended September 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 67 towers for $20.6 million to Crown
Castle International Corp ("Crown"). In April 2000, the Alliance sold a
total of 15 towers for $3.3 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 $1.42 million to the Alliance,
purchasing 78,944.44 Common Membership units.
(4) In July 2000, the Alliance borrowed $49.1 million from NTELOS Inc.
(formerly CFW Communications Company) to pay off its indebtedness to the
Rural Telephone Finance Cooperative. The payoff included a prepayment fee
of $0.3 million. The Alliance's debt obligation to NTELOS bears interest at
a rate equal to NTELOS' borrowing rate under its Senior Credit Facility
(10.63% in October 2000) and matures in 2008.