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SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
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FORM 10-Q/A
Amendment No. 1
[X] QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES
EXCHANGE ACT OF 1934
For the quarterly period ended March 31, 1999
OR
[ ] TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES
EXCHANGE ACT OF 1934
For the transition period from to
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Commission file number 333-64717
US XCHANGE, L.L.C.
(Exact name of registrant as specified in its charter)
MICHIGAN 38-33505418
(State or Other Jurisdiction of (I.R.S. Employer Identification No.)
Incorporation or Organization)
20 MONROE AVENUE NW, SUITE 450, GRAND RAPIDS, MICHIGAN 49503
(Address of Principal Executive Offices) (Zip Code)
Registrant's telephone number, including area code: (616) 493-7000
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 |_|
At May 13, 1999, all of the membership interests of the registrant were
held by two affiliates of the registrant.
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US XCHANGE, L.L.C.
QUARTERLY REPORT ON FORM 10-Q
TABLE OF CONTENTS
Page No.
PART I FINANCIAL INFORMATION........................................................................................3
Item 1. Financial Statements.........................................................................................3
Consolidated Balance Sheets.......................................................................................3
Consolidated Statements Of Operations.............................................................................4
Consolidated Statements Of Cash Flows.............................................................................5
Notes To Consolidated Financial Statements........................................................................6
Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations........................9
Item 3. Quantitative and Qualitative Disclosures About Market Risk..................................................14
PART II OTHER INFORMATION..........................................................................................15
Item 6. Exhibits and Reports on Form 8-K............................................................................15
SIGNATURES..........................................................................................................16
INDEX TO EXHIBITS...................................................................................................17
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PART I
FINANCIAL INFORMATION
ITEM 1. FINANCIAL STATEMENTS.
US XCHANGE, L.L.C.
CONSOLIDATED BALANCE SHEETS
MARCH 31, DECEMBER 31,
1999 1998
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(UNAUDITED)
ASSETS
Current Assets
Cash and equivalents.................................................. $10,463,257 40,018,552
Restricted investments................................................ 27,406,656 28,525,109
Accounts Receivable, less allowance for doubtful accounts
of $259,000 and $174,000........................................... 2,773,748 1,865,503
Other current assets.................................................. 944,382 700,411
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TOTAL CURRENT ASSETS............................................. 41,588,043 71,109,575
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NETWORKS AND EQUIPMENT
Networks and networks in process (cost to complete of $19,053,000).... 96,648,069 85,821,872
Furniture and equipment............................................... 15,966,088 14,017,604
Leasehold improvements................................................ 5,666,057 3,937,223
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118,280,214 103,776,699
Less accumulated depreciation and amortization........................ 5,474,308 3,432,193
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NET NETWORKS AND EQUIPMENT................................................. 112,805,906 100,344,506
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OTHER ASSETS
Restricted investments................................................ 42,782,486 56,206,738
Debt issuance costs, net.............................................. 6,967,734 6,793,770
Miscellaneous......................................................... 509,179 261,328
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TOTAL OTHER ASSETS.................................................... 50,259,399 63,261,836
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TOTAL ASSETS.......................................................... $204,653,348 $234,715,917
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LIABILITIES AND MEMBERS' CAPITAL (DEFICIT)
CURRENT LIABILITIES
Accounts payable...................................................... $8,533,613 11,264,241
Accrued interest...................................................... 7,521,257 15,521,634
Accrued other liabilities............................................. 2,795,834 1,185,820
Current maturities of long-term debt.................................. 800,000 800,000
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TOTAL CURRENT LIABILITIES......................................... 19,650,704 28,771,695
LONG-TERM DEBT, LESS CURRENT MATURITIES...............................
15% Senior Notes...................................................... 200,000,000 200,000,000
Notes payable......................................................... 2,400,000 2,533,333
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TOTAL LIABILITIES................................................. 222,050,704 231,305,028
MEMBERS' CAPITAL (DEFICIT)
Capital contributions................................................. 60,000,000 60,000,000
Accumulated deficit................................................... (77,397,356) (56,589,111)
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TOTAL MEMBERS' CAPITAL (DEFICIT).................................. (17,397,356) 3,410,889
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$204,653,348 $234,715,917
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See accompanying notes to unaudited consolidated financial statements.
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SIGNATURES
Pursuant to the requirements of the Section 13 or 15(d) of the Securities
Exchange Act of 1934, the registrant has duly caused this Amendment No. 1 to the
report to be signed on its behalf by the undersigned thereunto duly authorized.
US XCHANGE, L.L.C.
May 18, 1999 By:/s/ Richard Postma
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Richard Postma
Co-Chairman and Chief Executive Officer
May 18, 1999 By:/s/ Donald Offringa
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Donald Offringa
Vice President of Finance (Principal Financial
Officer and Principal Accounting Officer)
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