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EXHIBIT 10.19
AMENDED AND RESTATED
AGREEMENT AND PLAN OF MERGER
BY AND AMONG
LET'S TALK CELLULAR & WIRELESS, INC.,
MERGER SUB 1, INC.
MERGER SUB 2, INC.
TELEPHONE WAREHOUSE, INC.
NATIONAL CELLULAR, INCORPORATED
AND
TEXAS CELLULAR PARTNERS, L.P.
DATED AS OF JUNE 27, 1997
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AMENDED AND RESTATED AGREEMENT AND PLAN OF MERGER
AMENDED AND RESTATED AGREEMENT AND PLAN OF MERGER, dated as of the
27th day of June, 1997, by and among LET'S TALK CELLULAR & WIRELESS, INC., a
Florida corporation f/k/a Let's Talk Cellular of America, Inc. ("LTC"), MERGER
SUB 1, INC., a Delaware corporation ("Merger Sub 1"), MERGER SUB 2, INC., a
Texas corporation ("Merger Sub 2" and collectively with Merger Sub 1, the
"Buyers"), TELEPHONE WAREHOUSE, INC., a Delaware corporation ("TWI"), NATIONAL
CELLULAR, INCORPORATED, a Texas corporation ("NCI") and TEXAS CELLULAR
PARTNERS, L.P., a Delaware limited partnership ("TCP"). Terms used herein and
not otherwise defined shall have the meanings set forth in Section 11.3 hereof.
WHEREAS, Merger Sub 1 desires to merge with and into TWI and TWI
desires that Merger Sub 1 be merged with and into TWI (the "TWI Merger"), so
that TWI will be the surviving corporation, all upon the terms and subject to
the conditions set forth herein and in accordance with the laws of the State of
Delaware;
WHEREAS, Merger Sub 2 desires to merge with and into NCI and NCI
desires that Merger Sub 2 be merged with and into NCI (the "NCI Merger" and
collectively with the TWI Merger, the "Mergers"), so that NCI will be the
surviving corporation, all upon the terms and subject to the conditions set
forth herein and in accordance with the laws of the State of Texas; and
WHEREAS, the parties hereto have previously executed an Agreement and
Plan of Merger on April 11, 1997 and now desire to amend and restate such
agreement to amend certain provisions thereof.
NOW, THEREFORE, in consideration of the representations and
warranties, covenants and agreements, and subject to the conditions contained
herein, the parties hereto agree as follows:
ARTICLE I
THE MERGERS
1.1 TWI Merger. At the Effective Time, (i) Merger Sub 1 shall be
merged with and into TWI on the terms and in accordance with the provisions
contained in this Agreement; (ii) the separate corporate existence of Merger
Sub 1 shall cease; (iii) the corporate existence of TWI shall continue under
the laws of the State of Delaware unaffected and unimpaired by the TWI Merger;
and (iv) TWI shall be the surviving corporation of the TWI Merger. At the
Effective Time, all of the assets and properties of Merger Sub 1, whether real,
personal or mixed, and whether tangible or intangible, and all of the
liabilities and obligations of Merger Sub 1, whether fixed or contingent, shall
vest in TWI as the surviving corporation, without any further action of either
Merger Sub 1 or TWI. From and after the Effective Time, TWI shall (i) possess
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rights, privileges, immunities, franchises (both public and private), assets
and properties whether real, personal or mixed, and (ii) shall be responsible
and liable for all of the liabilities and obligations of Merger Sub 1.
1.2 NCI Merger. At the Effective Time, (i) Merger Sub 2 shall be
merged with and into NCI on the terms and in accordance with the provisions
contained in this Agreement; (ii) the separate corporate existence of Merger
Sub 2 shall cease; (iii) the corporate existence of NCI shall continue under
the laws of the State of Texas unaffected and unimpaired by the NCI Merger; and
(iv) NCI shall be the surviving corporation of the NCI Merger. At the Effective
Time, all of the assets and properties of Merger Sub 2, whether real, personal
or mixed, and whether tangible or intangible, and all of the liabilities and
obligations of Merger Sub 2, whether fixed or contingent, shall vest in NCI as
the surviving corporation, without any further action of either Merger Sub 2 or
NCI. From and after the Effective Time, NCI shall (i) possess all of the
rights, privileges, immunities, franchises (both public and private), assets
and properties (whether real, personal or mixed and whether tangible or
intangible) of Merger Sub 2; and (ii) shall be responsible and liable for all
of the liabilities and obligations of Merger Sub 2.
1.3 Filing. As soon as practicable following fulfillment of the
conditions specified in Article VII and Article VIII hereof, and provided that
the Agreement has not been terminated and abandoned pursuant to Article X
hereof, (i) TWI and Merger Sub 1 will cause an executed counterpart of a
certificate of merger to be filed with the Secretary of State of Delaware, and
(ii) NCI and Merger Sub 2 will cause an executed counterpart of articles of
merger to be filed with the Secretary of the State of Texas.
1.4 Effective Time of the Mergers. The term "Effective Time" as
used herein is defined to mean the time that the filing of the certificate of
merger with the Secretary of State of Delaware (as to the TWI Merger) and the
filing of the articles of merger with the Secretary of State of Texas (as to
the NCI Merger) are completed.
1.5 Conversion of Shares. At the Effective Time, (i) each issued
and outstanding share of Common Stock of TWI shall be converted into 276.295
shares of Common Stock of LTC, (ii) each issued and outstanding share of
common stock of Merger Sub 1 shall be converted into one share common stock of
TWI, as the surviving corporation of the TWI Merger; (iii) each issued and
outstanding share of common stock of NCI shall be converted into 276.295 shares
of common stock of LTC, and (iv) each issued and outstanding share of common
stock of Merger Sub 2 shall be converted into one share of common stock of NCI,
as the surviving corporation of the NCI Merger.
1.6 Certificate of Incorporation and Bylaws. The certificate of
incorporation and bylaws of TWI in effect at the Effective Time shall be the
certificate of incorporation and bylaws of the surviving corporation of the TWI
Merger. The articles of incorporation and bylaws of NCI in effect at the
Effective Time shall be the articles of incorporation and bylaws of the
surviving corporation of the NCI Merger.
1.7 Officers and Directors. The officers of TWI in effect at the
Effective Time shall be the officers of the surviving corporation of the TWI
Merger. The directors of the surviving
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corporation of the TWI Merger shall be Nicholas Molina, Brett Beveridge and
Douglas Berman. The officers of NCI in effect at the Effective Time shall be
the officers and directors of the surviving corporation of the NCI Merger. The
directors of the surviving corporation of the NCI Merger shall be Nicholas
Molina, Brett Beveridge and Douglas Berman.
ARTICLE II
REPRESENTATIONS AND WARRANTIES OF TCP, TWI AND NCI
TCP, TWI and NCI, jointly and severally, represent and warrant to the
Buyers as of the date hereof and as of the Closing Date:
2.1 Organization, Etc. Each of TWI and NCI is a corporation duly
organized, validly existing and in good standing under the laws of its
jurisdiction of incorporation with full corporate power and authority to carry
on its business as it is now being conducted and proposed to be conducted, and
to own, operate and lease its properties and assets. Each of TWI and NCI is
duly qualified or licensed to do business and is in corporate and tax good
standing in every jurisdiction in which the conduct of its business or the
ownership or lease of its properties require it to be so qualified or licensed,
except where the failure to be so qualified or licensed would not have a
Material Adverse Effect.
2.2 Subsidiaries. Neither TWI nor NCI has any subsidiaries.
2.3 Stock Record Books. The stock record books of TWI and NCI
which have been delivered to LTC for inspection prior to the date hereof are
complete and correct in all material respects. The issued and outstanding
capital stock of each of TWI and NCI is 1,000 shares of Common Stock issued to
Texas Cellular Partners, L.P. There are no shares of capital stock of TWI or
NCI held in the treasury of TWI or NCI and no shares of capital stock of TWI or
NCI are currently reserved for issuance for any purpose or upon the occurrence
of any event or condition.
2.4 Title to Stock. All of the outstanding shares of capital
stock of TWI and NCI are owned by TCP free of all Liens and Contracts, except
for Liens in favor of NationsCredit Commercial Corporation and Mr. Ronald L.
Koonsman, and have been issued in compliance with all applicable securities
laws. Neither TWI nor NCI is a party to any outstanding Contract with any other
Person to purchase, redeem or otherwise acquire any outstanding capital stock
of TWI or NCI. Neither TWI nor NCI has redeemed any securities in violation of
any Contract or Regulation (including, without limitation, any state or federal
securities laws). All of the outstanding shares of the capital stock of TWI and
NCI are owned by TCP, are duly authorized, validly issued, fully paid and
nonassessable.
2.5 Authorization.
(a) TWI and NCI each have full power and authority to
enter into this Agreement and the agreements contemplated hereby and to
consummate the transactions contemplated hereby and thereby. The execution,
delivery and performance of this Agreement
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and all other agreements and transactions contemplated hereby have been duly
authorized by the respective boards of directors and shareholders of TWI and
NCI and no other corporate proceedings on their respective parts are necessary
to authorize this Agreement and the transactions contemplated hereby. This
Agreement and all other agreements contemplated hereby to be entered into by
TWI and NCI each constitutes a legal, valid and binding obligation of TWI and
NCI, enforceable against TWI and NCI in accordance with its terms.
(b) TCP is the sole owner of and has full right, power
and authority to sell the capital stock of TWI and NCI. TCP has full
partnership power and authority to enter into this Agreement and the agreements
contemplated hereby and to deliver the shares of outstanding capital stock of
TWI and NCI and the certificates evidencing such shares to LTC as provided for
herein, free and clear of all Liens, except for Liens in favor of NationsCredit
Commercial Corporation and Mr. Ronald L. Koonsman. This Agreement and all other
agreements contemplated hereby to be entered into by TCP each constitute a
legal, valid and binding obligation of TCP enforceable against TCP in
accordance with its terms.
2.6 Options and Rights. At the Closing Date there shall be no
outstanding Options with respect to TWI's or NCI's outstanding capital stock or
TCP's partnership interests, except the warrant issued to NationsCredit
Commercial Corporation. There are no existing Contracts or Options between TCP
on the one hand, and any other Person, on the other hand, regarding the shares
of outstanding capital stock of TWI and NCI, except as may relate to
NationsCredit Commercial Corporation and Mr. Ronald L. Koonsman.
2.7 No Violation. Except as set forth in Schedule 2.7 hereto, the
execution, delivery and performance by TCP, TWI and NCI of this Agreement, and
all other agreements contemplated hereby, and the fulfillment of and compliance
with the respective terms hereof and thereof by TCP, TWI and NCI, do not and
will not (a) conflict with or result in a breach of the terms, conditions or
provisions of, (b) constitute a default or event of default under (with due
notice, lapse of time or both), (c) result in the creation of any Lien upon
TWI's or NCI's capital stock or assets pursuant to, (d) give any third party
the right to accelerate any obligation under, (e) result in a violation of, or
(f) require any authorization, consent, approval, exemption or other action by,
notice to, or filing with any Authority pursuant to, the organizational
documents of TCP, TWI or NCI or any applicable Regulation (including, without
limitation, approvals pursuant to the Hart-Scott-Rodino Antitrust Improvements
Act of 1976), Order or any material Contract to which TCP, TWI or NCI or their
respective properties, partnership interests or capital stock are subject. Each
of TCP, TWI and NCI will comply with all applicable Regulations and Orders in
connection with the execution, delivery and performance of this Agreement and
the transactions contemplated hereby.
2.8 Financial Statements. Attached as Schedule 2.8 hereto are
unaudited consolidated year-end balance sheets and statements of operations of
TCP for 1996 and audited year-end balance sheets and statements of operations
of TCP's predecessors as for each of the years 1995 and 1994. Such balance
sheets and the notes thereto have been prepared in accordance with GAAP (except
as stated therein or in the notes thereto) and fairly present the financial
position of TCP or its predecessors, as applicable, at the respective dates
thereof, and such statements of operations and the notes thereto (i) fairly
present the results of operations for the periods therein
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referred to, all in accordance with GAAP (except as stated therein or in the
notes thereto), and (ii) fairly present the financial condition of TCP at the
respective date of, and for the period covered by such statements.
2.9 Absence of Certain Changes. Since the date of TCP's most
recent financial statements, there has not been (a) any Material Adverse Change
in the business, operations, properties, assets, condition (financial or
otherwise) of TCP, TWI or NCI; (b) any damage, destruction or loss, whether
covered by insurance or not, having a Material Adverse Effect, with regard to
TWI's or NCI's property and business; (c) any declaration, setting aside or
payment of any dividend or distribution (whether in cash, stock or property) in
respect of TCP's partnership interests, or any redemption or other acquisition
of such partnership interests by TCP; (d) any entry into any material Contract
not in the ordinary course of business, including without limitation, any
borrowing or capital expenditure; or (e) any change by TCP in accounting
methods or principles.
2.10 Litigation. There is no Claim pending or, to the best
knowledge of TCP, TWI or NCI threatened against TWI or NCI which, if adversely
determined, would have a Material Adverse Effect on TWI or NCI, nor is there
any Order outstanding against TWI or NCI having, or which, insofar as can be
reasonably foreseen, in the future may have, a Material Adverse Effect on TWI
or NCI.
2.11 Compliance with Law. TWI and NCI are presently in material
compliance with regard to their respective operations, practices, real property
and other property, and all other aspects of its business, with all applicable
Regulations and Orders. There are no Claims pending, or threatened, nor has
TCP, TWI or NCI received any written notice, regarding any violations of any
Regulations and Orders enforced by any Authority which could reasonably be
expected to have a Material Adverse Effect.
2.12 Contracts.
(a) Except as set forth in Schedule 2.12 hereto, as of
the Closing Date, neither TWI nor NCI is a party to any written or oral:
(i) pension, profit sharing, stock option,
employee stock purchase or other plan providing for deferred
or other compensation to employees or any other employee
benefit plan, or any Contract with any labor union;
(ii) Contract relating to loans to officers,
directors, or Affiliates;
(iii) Contract relating to the borrowing of money
or the mortgaging, pledging or otherwise placing a Lien on
any asset of TWI or NCI;
(iv) Guarantee of any obligation;
(v) Contract under which TWI or NCI has advanced
or loaned any Person amounts in the aggregate exceeding
$10,000;
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(vi) Contract under which TWI or NCI is lessee of
or holds or operates any property, real or personal, owned by
any other party, except for any lease of real or personal
property under which the aggregate annual rental payments do
not exceed $25,000;
(vii) Contract pursuant to which TWI or NCI is
lessor of or permits any third party to hold or operate any
property, real or personal, owned or controlled by TWI or
NCI;
(viii) Contract or group of related Contracts with
the same party or group of affiliated parties the performance
of which involves annual consideration in excess of $25,000;
(ix) assignment, license, indemnification or
Contract with respect to any intangible property;
(x) Contract for the purchase, acquisition or
supply of inventory and other property and assets, whether
for resale or otherwise in excess of $25,000;
(xi) Contracts with independent agents, brokers,
dealers or distributors which provide for annual payments in
excess of $25,000;
(xii) employment or consulting Contracts;
(xiii) Contracts providing for "take or pay" or
similar unconditional purchase or payment obligations; or
(xiv) Contracts with Persons with which, directly
or indirectly, TCP also has a Contract.
(b) TWI and NCI have performed in all material respects
all obligations required to be performed by them and are not in default in any
respect under or in breach of nor in receipt of any claim of default or breach
under any material Contract to which TWI or NCI is subject (including without
limitation all performance bonds, warranty obligations or otherwise); no event
has occurred which with the passage of time or the giving of notice or both
would result in a default, breach or event of non-compliance under any material
Contract to which TWI or NCI is subject (including without limitation all
performance bonds, warranty obligations or otherwise); neither TWI nor NCI have
any present expectation or intention of not fully performing all such
obligations; neither TWI nor NCI have any knowledge of any breach or
anticipated breach by the other parties to any such Contract to which it is a
party.
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2.13 Title and Related Matters.
(a) Except as set forth in Schedule 2.13(a) hereto, TWI
and NCI have good and marketable title to all of their real and personal
property and other assets in TCP's financial statements provided pursuant to
Section 2.8 hereof or acquired after the date of such financial statements,
free and clear of all Liens, except Permitted Liens.
ARTICLE III
REPRESENTATIONS AND WARRANTIES
OF THE BUYERS
The Buyers and LTC represent and warrant to TCP, TWI and NCI as
follows as of the date hereof and as of the Closing Date:
3.1 Corporate Organization, Etc. Each of the Buyers and LTC is a
corporation duly organized, validly existing and in good standing under the
laws of its jurisdiction of incorporation with full corporate power and
authority to carry on its business as it is now being conducted and to own,
operate and lease its properties and assets. Each of the Buyers and LTC is
duly qualified or licensed to do business and is in corporate and tax good
standing in every jurisdiction in which the conduct of its business or the
ownership or lease of its properties require it to be so qualified or licensed,
except where the failure to be so qualified or licensed would not have a
Material Adverse Effect.
3.2 Subsidiaries and Affiliates. Each of the Buyers is a
wholly-owned subsidiary of LTC.
3.3 Authorization. Each of the Buyers and LTC has full corporate
power and authority to enter into this Agreement and to carry out the
transactions contemplated hereby and thereby. The Board of Directors of each of
the Buyers and LTC and the shareholders of each of the Buyers has duly
authorized the execution, delivery and performance of this Agreement and to
consummate the transactions contemplated hereby, and no other corporate
proceedings on their part are necessary to authorize this Agreement and the
transactions contemplated hereby and thereby. This Agreement constitutes the
legal, valid and binding obligation of each of the Buyers and LTC enforceable
against such Buyer and LTC in accordance with its terms.
3.4 No Violation. Except as set forth in Schedule 3.4 hereto, the
execution, delivery and performance by each of the Buyers and LTC of this
Agreement, and all other agreements contemplated hereby, and the fulfillment of
and compliance with the respective terms hereof and thereof by such Buyer and
LTC, do not and will not (a) conflict with or result in a breach of the terms,
conditions or provisions of, or (b) result in a violation of, or require any
authorization, consent, approval, exemption or other action by, or notice to,
or filing with any court or Authority pursuant to, the charter or bylaws of any
of the Buyers or LTC or, to the best knowledge of any of the Buyers and LTC,
any applicable Regulation (including, without limitation, approvals pursuant to
the Hart-Scott-Rodino Antitrust Improvements Act of 1976),
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Order or any material Contract to which any of the Buyers or LTC, or their
respective properties are subject. The Buyers and LTC will comply in all
material respects with all applicable Regulations and Orders in connection with
its execution, delivery and performance of this Agreement and the transactions
contemplated hereby.
3.5 Financial Statements. Attached as Schedule 3.5 hereto are
audited consolidated year-end balance sheets and statements of operations,
shareholders' equity and cash flow of LTC as for each of the years ended July
31, 1996, 1995 and 1994 and an unaudited consolidated balance sheet for the six
month period commencing August 1, 1996 and ending January 31, 1997 and
unaudited consolidated statements of operations, shareholders' equity and cash
flow for the six month period then ended. Such balance sheets and the notes
thereto fairly present the financial position of LTC as applicable, at the
respective dates thereof, and such statements of operations, shareholders'
equity and cash flow and the notes thereto (i) fairly present the results of
operations for the periods therein referred to, all in accordance with GAAP
(except as stated therein or in the notes thereto), and (ii) fairly present the
financial condition of LTC at the respective date of, and for the period
covered by such statements.
3.6 Absence of Certain Changes. Since the date of LTC's most
recent financial statements, there has not been (a) any Material Adverse Change
in the business, operations, properties, assets, condition (financial or
otherwise) of LTC; (b) any damage, destruction or loss, whether covered by
insurance or not, having a Material Adverse Effect, with regard to LTC's
property and business; (c) any declaration, setting aside or payment of any
dividend or distribution (whether in cash, stock or property) in respect of
LTC's capital stock, or any redemption or other acquisition of such stock by
LTC; (d) any entry into any material Contract not in the ordinary course of
business, including without limitation, any borrowing or capital expenditure;
or (e) any change by LTC in accounting methods or principles.
3.7 Litigation. There is no Claim pending or, to the best
knowledge of LTC, threatened against LTC which, if adversely determined, would
have a Material Adverse Effect on LTC, nor is there any Order outstanding
against LTC having, or which, insofar as can be reasonably foreseen, in the
future may have, a Material Adverse Effect on LTC.
3.8 Compliance with Law. LTC is presently in material compliance
with regard to its operations, practices, real property and other property, and
all other aspects of its business, with all applicable Regulations and Orders.
There are no Claims pending, or threatened, nor has LTC received any written
notice, regarding any violations of any Regulations and Orders enforced by any
Authority which could reasonably be expected to have a Material Adverse Effect.
3.9 Contracts.
(a) Except as set forth in Schedule 3.9 hereto, as of the
Closing Date, LTC is not a party to any written or oral:
(i) pension, profit sharing, stock option,
employee stock purchase or other plan providing for deferred
or other compensation to employees or any other employee
benefit plan, or any Contract with any labor union;
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(ii) Contract relating to loans to officers,
directors, or Affiliates;
(iii) Contract relating to the borrowing of money
or the mortgaging, pledging or otherwise placing a Lien on
any asset of LTC;
(iv) Guarantee of any obligation;
(v) Contract under which LTC has advanced or
loaned any Person amounts in the aggregate exceeding $10,000;
(vi) Contract under which LTC is lessee of or
holds or operates any property, real or personal, owned by
any other party, except for any lease of real or personal
property under which the aggregate annual rental payments do
not exceed $25,000;
(vii) Contract pursuant to which LTC is lessor of
or permits any third party to hold or operate any property,
real or personal, owned or controlled by LTC;
(viii) Contract or group of related Contracts with
the same party or group of affiliated parties the performance
of which involves annual consideration in excess of $25,000;
(ix) assignment, license, indemnification or
Contract with respect to any intangible property;
(x) Contract for the purchase, acquisition or
supply of inventory and other property and assets, whether
for resale or otherwise in excess of $25,000;
(xi) Contracts with independent agents, brokers,
dealers or distributors which provide for annual payments in
excess of $25,000;
(xii) employment or consulting Contracts;
(xiii) Contracts providing for "take or pay" or
similar unconditional purchase or payment obligations; or
(xiv) Contracts with Persons with which, directly
or indirectly, a shareholder of LTC also has a Contract.
(b) LTC has performed in all material respects all
obligations required to be performed by it and is not in default in any respect
under or in breach of nor in receipt of any claim of default or breach under
any material Contract to which LTC is subject (including without limitation all
performance bonds, warranty obligations or otherwise); no event has occurred
which with the passage of time or the giving of notice or both would result in
a default, breach or event of non-compliance under any material Contract to
which LTC is subject (including without limitation all performance bonds,
warranty obligations or otherwise); LTC has no present
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expectation or intention of not fully performing all such obligations; LTC has
no knowledge of any breach or anticipated breach by the other parties to any
such Contract to which it is a party.
3.10 Title and Related Matters.
(a) Except as set forth in Schedule 3.10(a) hereto, LTC
has good and marketable title to all real and personal property and other
assets reflected in LTC's financial statements provided pursuant to Section 3.5
hereto or acquired after the date of such financial statements free and clear
of all Liens, except Permitted Liens.
ARTICLE IV
COVENANTS OF TCP, TWI AND NCI
Until the Closing Date, except as otherwise consented to or approved
by the Buyers in writing, TCP, TWI and NCI agree that they shall act, or
refrain from acting where required hereinafter, to comply with the following:
4.1 Regular Course of Business. TCP, TWI and NCI shall operate
their respective business diligently and in good faith, consistent with past
management practices; shall maintain all of its properties in customary repair,
order and condition, reasonable wear and tear excepted; shall maintain (except
for expiration due to lapse of time), all material leases and material
Contracts in effect which are in the best interests of their respective
businesses; shall comply in all material respects with the provisions of all
Regulations and Orders applicable to TCP, TWI and NCI and the conduct of their
respective businesses; and shall not cancel, release, waive or compromise any
debt, Claim or right in their respective favors having a value in the aggregate
in excess of $20,000 other than in connection with returns for credit or
replacement in the ordinary course of business. Neither TWI nor NCI shall
incur, assume or guarantee any Indebtedness not reflected in TCP's financial
statements, except in the ordinary course of business.
4.2 Amendments. No change or amendment shall be made in the
organizational documents of TWI or NCI. Neither TWI nor NCI shall merge into
or consolidate with any other Person or change the character of its business.
4.3 Capital Changes; Pledges. Neither TWI nor NCI shall issue or
sell any shares of capital stock or issue or sell any securities convertible
into, or Options to subscribe for any shares of capital stock and TCP shall not
pledge or otherwise encumber any of their capital stock except for the Liens in
favor of NationsCredit Commercial Corporation and Mr. Ronald L. Koonsman. In
addition, neither TWI nor NCI shall allow the transfer of any capital stock on
their respective transfer ledger or other books and records.
4.4 Dividends. Neither TWI nor NCI shall declare, pay or set
aside for payment any dividend or other distribution in respect of its
outstanding capital stock, nor shall TWI nor NCI, directly or indirectly,
redeem, purchase or otherwise acquire any of their capital stock.
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ARTICLE V
COVENANTS OF LTC
LTC hereby covenants and agrees with TCP and the Sellers that:
5.1 Regular Course of Business. LTC shall operate its business
diligently and in good faith, consistent with past management practices; shall
maintain all of its properties in customary repair, order and condition,
reasonable wear and tear excepted; shall maintain (except for expiration due to
lapse of time), all material leases and material Contracts in effect which are
in the best interests of its business; shall comply in all material respects
with the provisions of all Regulations and Orders applicable to LTC and the
conduct of its business; and shall not cancel, release, waive or compromise any
debt, Claim or right in its favor having a value in the aggregate in excess of
$20,000 other than in connection with returns for credit or replacement in the
ordinary course of business. LTC shall not incur, assume or guarantee any
Indebtedness not reflected on LTC's financial statements except in the ordinary
course of business.
5.2 Amendments. Except as required for the transactions
contemplated in this Agreement, no change or amendment shall be made in the
charter or bylaws of LTC. LTC shall not merge into or consolidate with any
other Person or change the character of its business.
5.3 Capital Changes; Pledges. LTC shall not issue or sell any
shares of its capital stock of any class or issue or sell any securities
convertible into, or Options to subscribe for any shares of its capital stock
and LTC shall not pledge or otherwise encumber any shares of its capital stock,
with the exception of shares of Common Stock issued upon the conversion of
LTC's Series A Convertible Preferred Stock. In addition, LTC shall not allow
the transfer of any shares of its capital stock on the stock transfer ledger or
other books and records.
5.4 Dividends. LTC shall not declare, pay or set aside for
payment any dividend or other distribution in respect of its capital stock, nor
shall LTC, directly or indirectly, redeem, purchase or otherwise acquire any
shares of its capital stock.
ARTICLE VI
OTHER AGREEMENTS
The parties further agree as follows:
6.1 Agreement to Defend. In the event any action, suit,
proceeding or investigation of the nature specified in Section 7.4 or Section
8.4 hereof is commenced all the parties hereto agree to cooperate and use their
best efforts to defend against and respond thereto.
6.2 Further Assurances. Subject to the terms and conditions of
this Agreement, the parties hereto shall use their best efforts to take, or
cause to be taken, all action, and to do, or cause to be done, all things
necessary, proper or advisable under applicable laws and Regulations
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to consummate and make effective as promptly as possible the transactions
contemplated by this Agreement, and to cooperate with each other in connection
with the foregoing.
ARTICLE VII
CONDITIONS TO THE OBLIGATIONS OF LTC AND THE BUYERS
Each and every obligation of LTC and the Buyers under this Agreement
shall be subject to the satisfaction, on or before the Closing Date, of each of
the following conditions unless waived in writing by the Buyers:
7.1 Representations and Warranties; Performance. The
representations and warranties of TCP, TWI and NCI contained in Article II of
this Agreement shall be true and correct in all material respects when made and
on the Closing Date as though then made, except as expressly provided herein.
TCP, TWI and NCI shall have performed and complied in all material respects
with all agreements, covenants and conditions required by this Agreement to be
performed and complied with by them prior to the Closing Date. The general
partner of TCP and the president of each of TWI and NCI shall have delivered to
LTC certificates, dated the Closing Date, in the form designated Exhibit 7.1
hereto, certifying to the foregoing.
7.2 Consents and Approvals. TCP, TWI and NCI shall have obtained
any and all consents, approvals, qualifications, licenses or other
authorizations required by all applicable Regulations with respect to the
execution, delivery and performance of the Agreement.
7.3 No Material Adverse Change. There shall have been no Material
Adverse Change in the business or properties of TWI or NCI since the date of
this Agreement. LTC shall have received certificates, dated the Closing Date,
of the president and chief financial officer of each of TWI and NCI, in the
form of Exhibit 7.3 hereto, certifying to the foregoing.
7.4 No Proceeding or Litigation. No preliminary or permanent
injunction or other Order issued by a court of competent jurisdiction or by any
governmental agency, or any Regulation shall be in effect, which would prevent
the consummation of the transactions contemplated hereby.
7.5 Shareholders Agreement of LTC. The Shareholders Agreement of
LTC shall be amended and restated in the form of Exhibit 7.5 hereto.
7.6 Modification of Employment Agreements. The Employment
Agreements of Brett Beveridge and Nicholas Molina with LTC shall be amended and
restated in the form attached hereto as Exhibit 7.6.
7.7 Conversion of Preferred Stock. HIG Fund V, Inc., the owner of
100,000 shares of LTC's Series A Preferred Stock, shall have converted such
preferred stock into common stock of LTC and Articles III, IV and V of the
Series A Preferred Stock Purchase Agreement shall terminate upon the
consummation of the transactions contemplated hereby.
-12-
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7.8 Consulting Agreement. HIG Capital Management, Inc. shall have
executed and delivered to LTC and TWI the Consulting Agreement, in the form of
Exhibit 7.8 hereto.
7.9 Lenders' Consents. NationsCredit Commercial Corporation and
Mr. Ronald L. Koonsman (if required) shall have consented to the transactions
contemplated hereby.
7.10 Termination of Redemption Agreement. The Redemption Agreement
between LTC and HIG Fund V, Inc. shall have been terminated.
7.11 Grant of Options. LTC shall have granted to each of Messrs.
Molina and Beveridge options to purchase 27,721 shares of LTC's Common Stock,
such options to vest upon consummation of an initial public offering of LTC's
Common Stock.
ARTICLE VIII
CONDITIONS TO THE OBLIGATIONS OF TCP, TWI AND NCI
Each and every obligation of TCP, TWI and NCI under this Agreement
shall be subject to the satisfaction, on or before the Closing Date, of each of
the following conditions unless waived in writing by TCP, TWI and NCI:
8.1 Representations and Warranties; Performance. The
representations and warranties of the Buyers contained in Article III of this
Agreement shall be true and correct in all material respects when made and on
the Closing Date as though then made, except as expressly provided herein. The
Buyers shall have performed and complied with all agreements, covenants and
conditions required by this Agreement to be performed and complied with by it
prior to the Closing Date. The president of each of the Buyers shall have
delivered to TCP, TWI and NCI certificates, dated the Closing Date, in the form
designated Exhibit 8.1 hereto, certifying to the foregoing.
8.2 Consents and Approvals. The Buyers shall have obtained any
and all material consents, approvals, qualifications, licenses or other
authorizations required by all applicable Regulations with respect to the
execution, delivery and performance of the Agreement.
8.3 No Material Adverse Change. There shall have been no Material
Adverse Change in the business or properties of the Buyers since the date of
this Agreement. TCP, TWI and NCI shall have received certificates dated the
Closing Date, of the president and chief financial officer of each of the
Buyers, in the form of Exhibit 7.3 hereto, certifying to the foregoing.
8.4 No Proceeding or Litigation. No preliminary or permanent
injunction or other Order issued by a court of competent jurisdiction or by any
governmental agency, or any Regulation shall be in effect, which would prevent
the consummation of the transactions contemplated hereby.
8.5 Lenders Consents. NationsCredit Commercial Corporation and
Mr. Ronald L. Koonsman (if required) shall have consented to the transactions
contemplated hereby.
-13-
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8.6 Shareholders Agreement of LTC. The Shareholders Agreement of
LTC shall be amended and restated in the form of Exhibit 7.5 hereto.
8.7 Conversion of Preferred Stock. HIG Fund V, Inc. shall have
received 350,000 shares of LTC common stock upon conversion of the Series A
Preferred Stock.
8.8 Consulting Agreement. LTC and TWI shall have executed a new
consulting agreement with HIG Capital Management, Inc.
ARTICLE IX
CLOSING
9.1 Closing. Unless this Agreement shall have been terminated or
abandoned pursuant to the provisions of Article X hereof, a closing of the
transactions contemplated by this Agreement (the "Closing") shall be held on
June 27, 1997, or on such other date (the "Closing Date") designated by the
parties in the offices of Greenberg, Traurig, Hoffman, Lipoff, Rosen & Quentel,
P.A., 1221 Brickell Avenue, Miami, Florida 33131, provided that the Closing
shall not occur, in any event, after July 11, 1997.
ARTICLE X
TERMINATION AND ABANDONMENT
10.1 Methods of Termination. This Agreement may be terminated and
the transactions herein contemplated may be abandoned at any time:
(a) by mutual consent of LTC, the Buyers, TCP, TWI and
NCI;
(b) by any of LTC the Buyers, TCP, TWI or NCI if this
Agreement is not consummated on or before July 11, 1997; provided that if any
party has breached or defaulted with respect to its respective obligations
under this Agreement on or before such date, such party may not terminate this
Agreement pursuant to this Section 10.1(b), and each other party to this
Agreement shall at its option enforce its rights against such breaching or
defaulting party and seek any remedies against such party, in either case as
provided hereunder and by applicable law;
(c) by any of LTC or the Buyers if as of the Closing Date
any of the conditions specified in Article VII hereof have not been satisfied
in any material respect or if TCP, TWI or NCI are otherwise in default in any
material respect under this Agreement; or
(d) by TCP, TWI or NCI if as of the Closing Date any of
the conditions specified in Article VIII hereof have not been satisfied in any
material respect or if any of LTC or the Buyers are otherwise in default in any
material respect under this Agreement.
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ARTICLE XI
MISCELLANEOUS PROVISIONS
11.1 Amendment and Modification. Subject to applicable law, this
Agreement may be amended, modified and supplemented only by written agreement
of the parties hereto, at any time prior to the Closing Date with respect to
any of the terms contained herein.
11.2 Waiver of Compliance; Consents. Any failure of any party
hereto to comply with any obligation, covenant, agreement or condition herein
may be waived in writing by the other parties hereto, but such waiver or
failure to insist upon strict compliance with such obligation, covenant,
agreement or condition shall not operate as a waiver of, or estoppel with
respect to, any subsequent or other failure. Whenever this Agreement requires
or permits consent by or on behalf of any party hereto, such consent shall be
given in writing.
11.3 Certain Definitions.
"Affiliate" means, with regard to any Person, (a) any Person,
directly or indirectly, controlled by, under common control of, or
controlling such Person, (b) any Person, directly or indirectly, in
which such Person holds, of record or beneficially, five percent or
more of the equity or voting securities, (c) any Person that holds,
of record or beneficially, five percent or more of the equity or
voting securities of such Person, (d) any Person that, through
Contract, relationship or otherwise, exerts a substantial influence
on the management of such person's affairs, (e) any Person that,
through Contract, relationship or otherwise, is influenced
substantially in the management of their affairs by such Person, or
(f) any director, officer, partner or individual holding a similar
position in respect of such Person.
"Authority" means any governmental, regulatory or
administrative body, agency, commission, board, arbitrator or
authority, any court or judicial authority, any public, private or
industry regulatory authority, whether international, national,
federal, state or local.
"Claim" means any action, claim, lawsuit, demand, suit,
inquiry, hearing, investigation, notice of a violation, litigation,
proceeding, arbitration, appeals or other dispute, whether civil,
criminal, administrative or otherwise.
"Closing" shall have the meaning set forth in Section 9.1.
"Closing Date" shall have the meaning set forth in Section
9.1.
"Contract" means any agreement, contract, commitment,
instrument or other binding arrangement or understanding, whether
written or oral.
"Effective Time" shall have the meaning set forth in Section
1.4.
-15-
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"GAAP" means generally-accepted accounting principles,
consistently applied, as in existence at the date hereof.
"Guarantee" means any guarantee or other contingent liability
(other than any endorsement for collection or deposit in the ordinary
course of business), direct or indirect with respect to any
obligations of another Person, through an agreement or otherwise,
including, without limitation, (a) any endorsement or discount with
recourse or undertaking substantially equivalent to or having
economic effect similar to a guarantee in respect of any such
obligations and (b) any Contract (i) to purchase, or to advance or
supply funds for the payment or purchase of, any such obligations,
(ii) to purchase, sell or lease property, products, materials or
supplies, or transportation or services, in respect of enabling such
other Person to pay any such obligation or to assure the owner
thereof against loss regardless of the delivery or nondelivery of the
property, products, materials or supplies or transportation or
services or (iii) to make any loan, advance or capital contribution
to or other investment in, or to otherwise provide funds to or for,
such other Person in respect of enabling such Person to satisfy an
obligation (including any liability for a dividend, stock liquidation
payment or expense) or to assure a minimum equity, working capital or
other balance sheet condition in respect of any such obligation.
"Indebtedness" with respect to any Person means any
obligation of such Person for borrowed money, but in any event shall
include (a) any obligation or liabilities incurred for all or any
part of the purchase price of property or other assets or for the
cost of property or other assets constructed or of improvements
thereto, other than accounts payable included in current liabilities
and incurred in respect of property purchased in the ordinary course
of business, (whether or not such Person has assumed or become liable
for the payment of such obligation) (whether accrued, absolute,
contingent, unliquidated or otherwise, known or unknown, whether due
or to become due), (b) the face amount of all letters of credit
issued for the account of such Person and all drafts drawn
thereunder, (c) obligations incurred for all or any part of the
purchase price of property or other assets or for the cost of
property or other assets constructed or of improvements thereto,
other than accounts payable included in current liabilities and
incurred in respect of property purchased in the ordinary course of
business (whether or not such Person has assumed or become liable for
the payment of such obligation) secured by Liens, (d) capitalized
lease obligations, and (e) all Guarantees of such Person.
"Lien" means any security interest, lien, mortgage, pledge,
hypothecation, encumbrance, Claim, easement, restriction on transfer
or otherwise, or interest of another Person of any kind or nature.
"Material Adverse Change" means any developments or changes
which would have a Material Adverse Effect.
"Material Adverse Effect" means any circumstances, state of
facts or matters which might reasonably be expected to have a
material adverse effect in respect of LTC's or TCP's, TWI's or NCI's
respective business, operations, properties, assets, condition
(financial or otherwise), results, plans, strategies or prospects.
-16-
18
"Option" means any subscription, option, warrant, right,
security, Contract, commitment, understanding, outstanding or stock
appreciation, phantom stock option, profit participation or
arrangement by which with respect to any of the Buyers, LTC, TWI or
NCI such corporation is or may become bound to issue any additional
partnership interests or shares of its capital stock (as applicable)
or rights pursuant to which any Person has a right to purchase or
otherwise acquire shares of capital stock or (ii) with respect to a
Person, such Person is or may become bound to sell or allow another
Person to vote, encumber or control the disposition of any
partnership interests or capital stock or rights pursuant to which
any Person has a right to purchase or otherwise acquire, vote,
encumber or control the disposition of partnership interests of TCP
or shares of capital stock of any of the Buyers, LTC, TWI or NCI.
"Order" means any decree, order, judgment, injunction, rule,
lien, voting right, consent of or by an Authority.
"Permits" means all permits, licenses, registrations,
certificates, orders or approvals from any Authority or other Person
(including without limitation those relating to the occupancy or use
of owned or leased real property) issued to or held by any Buyer,
LTC, TCP, TWI or NCI.
"Permitted Liens" means (i) statutory Liens not yet
delinquent, (ii) such imperfections or irregularities of title,
Liens, easements, charges or encumbrances as do not materially
detract from or interfere with the present use of the properties or
assets subject thereto or affected thereby, otherwise impair present
business operations at such properties, or do not detract from the
value of such properties and assets, taken as a whole, (iii) Liens
reflected in TCP's or LTC's financial statements or the notes
thereto, (iv) the rights of customers of TWI, NCI or LTC with respect
to inventory or work in progress under orders or contracts entered
into by TWI, NCI or LTC in the ordinary course of business, (v)
mechanics', carriers', workers', repairmen's, warehousemen's, or
other similar Liens arising in the ordinary course of business in
respect of obligations not overdue or which are being contested in
good faith and covered by a bond in an amount at least equal to the
amount of the Lien, and (vi) deposits or pledges to secure workmen's
compensation, unemployment insurance, old age benefits or other
social security obligations in connection with, or to secure the
performance of, bids, tenders, trade contracts not for the payment of
money or leases, or to secure statutory obligations or surety or
appeal bonds or other pledges or deposits for purposes of like nature
in the ordinary course of business.
"Person" means any corporation, partnership, joint venture,
organization, entity, Authority or natural person.
"Regulation" means any rule, law, code, statute, regulation,
ordinance, requirement, announcement or other binding action of or by
an Authority.
11.4 Notices. All notices, requests, demands and other
communications required or permitted hereunder shall be in writing and shall be
deemed to have been duly given when
-17-
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delivered by hand or mailed, first class certified mail with postage paid or by
overnight receipted courier service:
(a) If to the Buyers to:
5200 N.W. 77th Court
Miami, Florida 33166
Attn: Nicholas Molina and Brett Beveridge
with a copy to:
Buchanan Ingersoll
NationsBank Tower
100 S.E. Second Street, Suite 2950
Miami, Florida 33131
Attention: John Schwartz
or to such other person or address as LTC and the Buyers shall furnish by
notice to TCP, TWI and NCI in writing.
(b) If to TCP, TWI or NCI, to:
1001 South Bayshore Drive, Suite 2708
Miami, Florida 33131
Attn: Anthony Tamer and
Douglas Berman
with a copy to:
Greenberg, Traurig, Hoffman, Lipoff,
Rosen & Quentel, P.A.
1221 Brickell Avenue
Miami, Florida 33131
Attn: Jorge L. Freeland, Esq.
or to such other person or address as TCP, TWI or NCI shall furnish by notice
to LTC and the Buyers in writing.
11.5 Assignment. This Agreement and all of the provisions hereof
shall be binding upon and inure to the benefit of the parties hereto and their
respective successors and permitted assigns, but neither this Agreement nor any
of the rights, interests or obligations hereunder shall be assigned by any of
the parties hereto without the prior written consent of the other parties.
11.6 Governing Law. The Agreement shall be governed by the law of
the State of Florida as to all matters, including but not limited to matters of
validity, construction, effect and performance.
-18-
20
11.7 Counterparts. This Agreement may be executed in two or more
counterparts, each of which shall be deemed an original, but all of which
together shall constitute one and the same instrument.
11.8 Headings. The article and section headings contained in this
Agreement are for reference purposes only and shall not affect in any way the
meaning or interpretation of this Agreement.
11.9 Entire Agreement. This Agreement, including the schedules and
exhibits hereto and the documents, certificates and instruments referred to
herein, embodies the entire agreement and understanding of the parties hereto
in respect of the mergers contemplated hereby.
11.10 Binding Effect. This Agreement shall not be construed so as
to confer any right or benefit upon any Person other than the signatories to
this Agreement and each of their respective successors and permitted assigns.
11.11 Injunctive Relief. The parties hereto agree that in the event
of a breach of any provision of this Agreement, the aggrieved party or parties
may be without an adequate remedy at law. The parties therefore agree that in
the event of a breach of any provision of this Agreement, the aggrieved party
or parties may elect to institute and prosecute proceedings in any court of
competent jurisdiction to enforce specific performance or to enjoin the
continuing breach of such provision, as well as to obtain damages for breach of
this Agreement. By seeking or obtaining any such relief, the aggrieved party
shall not be precluded from seeking or obtaining any other relief to which it
may be entitled.
11.12 Survival of Representations, Warranties and Covenants. Each
and every representation, warranty and covenant shall expire with, and be
terminated and extinguished by, the earlier to occur of the Closing or the
termination of this Agreement pursuant to Section 10.1 hereof or otherwise, and
thereafter neither the Buyers, LTC, TCP, TWI or NCI, nor any partner, officer,
director or principal thereof shall be under any liability whatsoever with
respect to such representation, warranty or covenant.
* * *
-19-
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IN WITNESS WHEREOF, the parties hereto have made and entered into
this Agreement the date first hereinabove set forth.
LET'S TALK CELLULAR & WIRELESS, INC.
By: /s/ Nicolas Molina
------------------------------------
Title: Chief Executive Officer
---------------------------------
MERGER SUB 1, INC.
By: /s/ Nicolas Molina
------------------------------------
Title: Chief Executive Officer
---------------------------------
MERGER SUB 2, INC.
By: /s/ Bucikas Molina
------------------------------------
Title: Chief Executive Officer
---------------------------------
TEXAS CELLULAR PARTNERS, L.P.
By: HIG Texan Cellular Company, its
managing general partner
By: /s/ Anthony Tamer
------------------------------------
Title: President
---------------------------------
TELEPHONE WAREHOUSE, INC.
By: /s/ Anthony Tamer
------------------------------------
Title: Vice President
---------------------------------
NATIONAL CELLULAR, INCORPORATED
By: /s/ Anthony Tamer
------------------------------------
Title: Vice President
---------------------------------
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Schedule 2.7 - No Violation
Consents required pursuant to the terms of the following documents:
1. Credit Agreement, dated as of December 31, 1996, among HIG Cellular
Acquisition Corporation, HIG Cellular Acquisition Corporation II, Texas Cellular
Partners, L.P., the Lenders referred to therein and NationsCredit Commercial
Corporation, and certain documents executed in connection with the Credit
Agreement, including, but not limited to, the Security Agreement, the Holdings
Pledge Agreement and the Guaranty Agreement
2. Subordinated Note, dated as of December 31, 1996, by Texas Cellular
Partners, L.P. in favor of Mr. Ronald L. Koonsman
3. Stock Pledge Agreement, dated as of December 31, 1996, by and
between Texas Cellular Partners, L.P. and Ronald L. Koonsman
4. Carrier contracts with:
a) AT&T Wireless
b) AT&T Wireless - San Antonio
c) CellularOne
d) Parkway Paging
e) PageNet - Kansas
f) McCaw Communications
g) PageNet - DFW
5. Leases with:
a) LBJ/Josey Lane Joint Venture
b) Red Hill Associates
c) Market East RPF III
d) Six Flags Joint Venture
e) Hulen Park Associates
f) Wimbledon Court
g) Richland Square Shopping Center
h) TMPC Realty Services Group
i) Windsor Place Shopping Center
j) Subiaco, Inc.
k) 6100 Callaghan Road, Inc.
1) DOM Company
m) Kessinger/Hunter & Co., Inc.
n) Meg Associates
o) MFM Realty Ltd. (2 leases)
23
6. Consulting Agreement, dated as of December 31, 1996, between HIG
Capital Management, Inc. and Telephone Warehouse, Inc.
7. The filing of a Notification and Report Form pursuant to the
Hart-Scott-Rodino Antitrust Improvements Act of 1976 will be required to
consummate this transaction.
24
Schedule 2.8 - Financial Statements
See attached.
25
NATIONAL CELLULAR, INC.
BALANCE SHEET
As of 12/31/96
ASSET:
Current Assets
Desk on hand $ 3,153.32
A/R-Accrual-PTAT 22,986.26
A/R Trade 2,981,472.32
A/P Usage 273,983.09
A/R Intercompany 2,588,433.66
A/P Other 3,149.88
A/P-Employee advances 100.00
A/P-Employee purchases 41.35
allowance for office
Inventory
-------------
Total $3,402,224.44
Other Assets
$ 2,355.00
----------
Total Other assets $ 3,655.00
------------
Total Assets $8,704,133.76
=============
26
LIABILITIES AND EQUITY
Current Liabilities
A/P-Trade $2,569,708.78
A-p- Accreals 616,273.78
A/P Bal & wages payable 37,973.98
Uninvoiced receiving 1,107,131.70
Intercompany A/P TN-BF4 94,711.80
Intercompany A/P TN-SA 17,001.25
Intercompany A/P TN-KO 4,781.03
Sales tax payable 274.73
S/Security and Fed tax payable 19,187.86
Unemployment tax payable 186.91
Accrued property taxes 32,207.12
Accrued professional 11,232.00
Accrued franchise taxes 3,617.35
Circuit 30.00
Income tax payable 1986 848,687.00
-------------
Total current Liabilities $4,895.096.61
-------------
Total Long Term Dis $ .00
-------------
Total Liabilities
$3,909,037.15
-------------
Total Liability and Equity $8,764,133.76
=============
27
NATIONAL CELLULAR, INC.
CONSOLIDATED INCOME STATEMENT
Period 12/01/96 to 12/31/96
Reporting Year-to-date Budget-reporting-period Budget-year-to-date
Amount Amount Amount Var-amt Var-% Amount Var-amt Var-%
INCOME
Total equipment
sales 3390647.98 32497426.91 3912686.00 (522938.02) 13.3- 28580495.00 3916931.91 13.7
Total Freight Sales 31128.08 276510.70 26125.00 5003.83 19.2 261997.00 14313.70 5.5
Misc. Income 1370.39 393.17 100.00 (620.59) 600.6- 2456.00 (2062.83) 84.0-
Residual Income 22908.16 284927.48 23800.00 91.74) .4 317500.00 (32372.52) 10.3-
Interest Income 4046.03 42937.57 4000.00 46.03 1.2 33800.00 9127.57 27.0
Pencal property
income 4500.00 49300.09 4500.00 .08 .0 49580.00 .00 .0
---------- ----------- ---------- ---------- ----------- ----------
Total Income 3452709.76 331551685.83 3970411.00 (517701.24) 13.0 29249748.00 3905937.83 13.4
COST OF GOODS SOLD
Total
cost of sales 1219708.18 30189027.92 3716621.00 (525912.74) 14.2 26926176.00 3228028.92 12.0
Freight paid 11618.39 319886.83 24440.00 (2921.41) 12.0- 231485.88 (11514.16) 5.0-
Shipping supplies 1167.99 19816.77 2750.00 487.99 15.9 27685.00 1681.77 6.1
Warranty supplies 786.86 10121.69 1250.00 (492.14) 39.4- 10068.00 61.69 .6
Credit and charge 787.78 6848.22 450.00 307.79 68.4 4081.00 2912.22 57.4
Inventory adjustments .00 96410.68 .00 .00 .0 67580.00 28918.68 42.8
---------- ----------- ---------- ---------- ----------- ----------
Total Cost of Sales 3745511.00 (528588.51) 14.1- 27266908.99 3244981.06 11.9
---------- ----------- ---------- ---------- ----------- ----------
Gross Profit 285778.37 2840804.75 224900.00 10879.27 4.8 1978848.00 661456.75 88.4
========== =========== ========== ========== =========== ==========
EXPENSES
Expenses -
Administrative 669095.24 60689.00 (207.30) .3 670418.88 (1532.76) .2-
Expenses - Taxes 688932.22 64749.00 (21173.27) 32.7- 723227.00 (41274.73) 5.7-
---------- ----------- ---------- ---------- ----------- ----------
Total Expenses 1849857.42 1398827.46 123438.00 (21380.57) 17.0- 1395655.00 (42627.54) 3.1-
Aec Income ( )
Before Tax 1612721.14 1287277.29 99462.00 32259.34) 32.4- 583193.00 704034.29) 120.7-
---------- ----------- ---------- ---------- ----------- ----------
Income Tax Expenses 44634.60 426047.00 .00 44640.00 .0 .00 426034.00 .0
Net Income (Loss)
After Tax 87087.84 861243.29 99462.00 (12374.16) 12.4 583198.00 278850.29 47.7
========== =========== ========== ========== =========== ==========
28
NATIONAL CELLULAR, INC.
INCOME STATEMENT
Period: 12/01/96 to 12/31/96
Reporting-pre Year-to-date Budget-reporting-period Budget-year-to-date
amount amount Amount Var-amt Var-% Amount Var-amt Var-%
Income: Administrative
Misc. income (638.49) 67.32 100.00 (738.49) 758.5- 2400.00 (2332.68) 97.2-
Residual income 22908.26 284927.48 28000.00 (91.74) .4- 317500.00 (32572.52) 10.3-
Interest income 4016.08 42927.57 4000.00 46.03 1.2 33800.00 9127.57 27.0
Rental property income 4500.00 49500.00 4500.00 .00 .0 49500.00 .00 .0
-------- --------- -------- ------- --------- ---------
Total Income: Administrative 30315.36 377422.37 31600.00 (784.20) 2.5- 403200.00 (25777.63) 6.4-
Cost of Sales: Administrative
-------- --------- -------- ------- --------- ---------
Total Cost of Sales: Admin. .00 .00 .00 .00 .0 .00 .00 .0
-------- --------- -------- ------- --------- ---------
Gross Profit: Administrative 40913.80 877422.87 81600.00 (784.20) 2.5- 408200.00 (25777.68) 6.4-
======== ========= ======== ======= ========= =========
29
Period: 12/01/96 to 12/31/96
Reporting-prd Year-to-date Budget-reporting-period Budget-year-to-date
amount amount Amount Var-amt Var-% Amount Var-amt Var-%
Expenses: Administrative
Salaries-administrative 50800.00 603000.00 54000.00 .00 .0 604000.00 (1000.00) .2-
Advertising-cellular .00 4936.99 .00 .00 .0 100.00 4836.99 999.9
Advertising-cellular access .00 37.71 .00 .00 .0 .00 37.71 .0
Alarm expense .00 124.10 .00 .00 .0 135.00 (10.90) 8.1-
Auto expense .00 48.62 .00 .00 .0 35.00 13.62 38.9
Donations expense .00 100.00 .00 .00 .0 .00 100.00 .0
Travel expense 348.45 488.59 150.00 198.45 132.3 150.00 338.59 225.7
Postage/Freight expense .00 1186.89 .00 .00 .0 540.00 646.89 119.8
Insurance expense 70.13 771.48 70.00 .13 .2 770.00 1.43 .2
Personnel .00 105.99 60.00 (60.00) 100.0- 440.00 (254.01) 57.7-
Office supplies expense 470.00 5061.05 750.00 (279.40) 37.3- 7089.00 (2027.95) 28.6-
Payroll taxes-Social security 9065.67 18064.17 2000.00 65.67 3.3 12511.80 553.17 4.4
Payroll taxes-Unemployment 266.70 292.62 250.00 16.70 6.7 277.00 15.62 5.6
Health Insurance expense 77.68 834.26 78.00 (.34) .4- 858.00 (3.74) .4-
Collection expense .00 10.00 .00 .00 .0 .00 10.00 .0
Printing expense 213.30 1871.28 150.00 65.50 48.7 1753.00 113.28 6.4
Professional fees expense 16.11 635.54 .00 10.11 .0 265.00 370.54 139.8
Rent expense 3062.76 8158.15 960.00 102.70 10.7 9420.00 (1261.85) 13.4-
Repairs/maintenance expense 156.92 1934.33 200.00 (69.08) 34.5- 2000.00 (65.17) 3.3-
Telephone expense 331.34 11906.16 1021.00 (189.16) 18.5- 13305.00 (1398.84) 10.5-
Utilities expense 266.60 2767.75 825.00 (58.40) 13.0- 2750.00 17.75 .6
Computer expense 342.95 3998.89 400.00 (57.05) 14.3- 11100.00 (2201.11) 18.9-
Janitorial expense 172.48 1820.88 200.00 (27.52) 18.8- 2150.00 (329.12) 15.3-
Refreshment expense 147.39 839.34 75.00 74.39 99.2 775.00 64.34 8.3
--------- ---------- --------- ------- ---------- ---------
Total Expenses: Administrative 60481.76 669095.24 60689.00 (207.30) .3- 670428.00 (1332.76) .2-
--------- ---------- --------- ------- ---------- ---------
Net Profit (Loss): Admin. (28665.90) (251672.87) (29089.00) (576.90) 2.0- (267228.00) (24444.87) 9.1-
========= ========== ========= ======= ========== =========
30
Period: 12/01/96 to 12/31/96
Reporting-prd Year-to-date Budget-reporting-period Budget-year-to-date
amount amount Amount Var-amt Var-% Amount Var-amt Var-%
Income: Taxes
Paper 61.25 8863.51 .00 61.25 .0 150.00 3713.51 999.9
Cellular 2114726.89 21728607.91 2210000.00 (95273.61) 4.6- 19589528.00 2139079.91 10.9
Cellular-digital 40100.00 850102.00 250000.00 (209900.00) 84.0- 480000.00 370102.00 77.1
Cellular accessories 208388.08 2878412.43 244100.00 (36011.92) 14.7- 1958190.00 420222.43 21.5
Fax 5817.00 189461.00 26000.00 (20688.00) 79.6- 238658.00 (49197.00) 20.6-
Fax accessories 810.00 18176.75 8250.00 (2440.00) 75.1- 36170.00 (17993.25) 49.7-
Automotive electronics 78.20 4160.14 .00 78.20 .0 3886.00 274.14 7.1
Freight earned: KCI 80149.76 278902.34 26000.00 4149.75 16.0 262228.00 11674.34 4.5
Freight earned: TW-D/FW 28.28 308.86 .00 28.28 .0 24.00 284.86 999.9
Freight earned: TW-S/A 594.41 2967.91 350.00 244.41 69.8 2424.00 548.91 22.4
Freight earned: TW-K/C 622.77 4251.61 325.00 297.77 91.6 3166.00 1085.61 34.3
Misc. income 117.90 325.85 .00 117.90 .0 56.00 269.85 481.9
Cellular accessories .00 8.84 .00 .00 .0 .00 8.84 .0
---------- ----------- ---------- ---------- ----------- ----------
Total Income: Taxes 2488994.00 25454548.65 2760325.00 (359330.97) 18.0- 22574480.00 2880068.65 12.8
Cost of Sales: Taxes
Papers 749.45 2412.26 .00 749.45 .0 90.00 2314.26 999.9
Cellular 1977648.35 19903913.86 2082200.00 (104559.65) 5.0- 18236356.00 1667557.86 9.1
Cellular-virtual 38896.50 324186.00 231250.00 (192354.00) 83.2- 450375.00 373811.00 83.0
Cellular accessories 242682.83 1851394.71 193520.00 (52837.12) 27.0- 1576536.00 274858.71 17.4
Fax 5039.68 179784.02 23400.00 (18360.32) 78.5- 215853.00 (36063.98) 16.7-
Fax accessories 627.37 13651.43 2600.00 (1972.63) 75.9- 25900.00 (12248.57) 47.8-
Automotive electronics 78.20 2910.51 .00 78.20 .0 2133.00 772.51 36.1
Freight paid: HCI 21318.59 219930.85 24440.00 (2921.41) 12.0- 231495.00 (11514.15) 5.0-
Shipping supplies-HK 3127.39 28714.28 2750.00 437.99 15.9 27565.00 1129.28 4.1
Shipping supplies-TW-DFW .90 602.49 .00 .00 .0 70.00 552.49 999.9
Warranty expense 757.33 10121.69 1250.00 (492.14) 39.4- 10060.00 61.69 .6
Credit card finance charge 757.79 6343.22 450.00 307.79 68.4 4031.00 2312.22 37.4
Inventory adjustment .00 96410.63 .00 .00 .0 67500.00 28910.63 42.8
---------- ----------- ---------- ---------- ----------- ----------
Total Cost of Sales: Taxes 2191936.16 23140425.95 2563860.00 (371923.34) 14.5- 20347977.00 2292448.95 11.0
---------- ----------- ---------- ---------- ----------- ----------
Gross Profit: Taxes 204057.37 2314122.70 196465.00 12592.87 6.4 1726503.00 587619.70 34.0
========== =========== ========== ========== =========== ==========
31
Period: 12/01/96 to 12/31/96
Reporting-prd Year-to-date Budget-reporting-period Budget-year-to date
amount amount Amount Var-amt Var-% Amount Var-amt Var-%
Expenses: Taxes
Salaries-administrative 9063.87 264071.39 25000.00 (15936.13) 63.7 275000.00 (10928.61) 4.0-
Salaries-warehouse 1814.93 19952.37 1816.00 (1.02) .1- 13423.00 1529.37 8.3
Salaries-sales 17380.46 204410.37 20799.00 (3418.54) 16.4- 205504.00 (1093.11) .5-
Advertising-cellular .00 49.70 .00 .00 .0 .00 49.70 .0
Alarm expense .00 124.10 .00 .00 .0 135.00 (10.90) 8.1-
Auto expense .00 138.00 .00 .00 .0 124.00 14.00 11.3
Bad debts expense .00 7500.00 .00 .00 .0 7500.00 .00 .0
Depreciation expense 4055.00 38371.65 4035.00 .00 .0 44385.00 (6013.35) 13.5-
Dues/subscriptions expense .00 32.40 .00 .00 .0 .00 32.40 .0
Travel expense 233.56 1208.22 150.00 83.56 55.7 300.00 908.22 302.7
Postage/freight expense .00 3270.13 .00 .00 .0 7435.00 (2164.87) 29.1-
Insurance expense 1073.38 7054.75 1050.00 28.33 2.7 11550.00 (4495.25) 38.9-
Personnel .00 394.46 .00 .00 .0 730.00 (335.54) 46.0-
Office supplies expense 158.20 3491.96 750.00 (591.80) 78.9- 8462.00 (2970.04) 35.1-
Payroll taxes-Social security 2786.76 31695.38 8037.00 (300.24) 9.9- 35472.00 (3776.42) 10.6-
Payroll taxes-Unemployment 487.98 2998.38 500.00 (12.07) 2.4- 3837.00 (338.42) 21.9-
Health insurance expense 543.59 3979.49 545.00 (1.41) .3- 5992.00 (12.51) .2-
Collection expense 69.05 2329.62 168.00 (98.95) 58.9- 1440.00 889.62 61.8
Printing expense 803.75 9032.67 700.00 (394.25) 56.8- 8625.00 407.67 4.7
Professional Fees expense 64.63 6201.65 .00 64.65 .0 7125.00 (923.35) 13.0-
Pest expense 1062.70 16676.81 960.00 102.70 10.7 26254.00 (9577.19) 36.5-
Repairs/maintenance expense 180.92 1847.10 230.00 (119.08) 47.6- 2750.00 (902.90) 32.8-
Other taxes expense 5373.00 60158.00 5385.00 (10.00) .2- 59705.00 445.00 .7
Telephone expense 2349.57 27756.14 2800.00 (450.43) 16.1- 30725.00 (2968.86) 9.7-
Utilities expense 266.59 2767.72 325.00 (58.41) 18.0- 2750.00 17.72 .6
Computer expense 342.95 3897.95 450.00 (107.05) 23.9- 4600.00 1297.95 28.2
Janitorial expense 172.48 2400.06 200.00 (27.52) 13.8- 2475.00 (74.94) 3.0-
Refreshment expense 149.97 834.93 75.00 74.39 99.2 635.00 199.83 31.5
Common operating expense (4246.00) (46706.00) (4246.00) .00 .0 (46706.00) .00 .0
----------- ----------- ----------- --------- ---- ----------- ---------
Total Expenses Taxes 48373.79 603932.22 64749.00 (21173.27) 32.7- 725227.00 (41294.73) 5.7-
----------- ----------- ----------- --------- ----------- ---------
Net Profit (Loss) Taxes 165482.14 1680190.48 131716.00 33766.14 25.6 1001276.00 628914.48 62.8
=========== =========== =========== ========= =========== =========
32
Period: 12/01/96 to 12/31/96
Reporting-prd Year-to-date Budget-reporting-period Budget-year-to date
amount amount Amount Var-amt Var-% Amount Var-amt Var-%
Income: Telephone Warehouse-Dallas/Ft. Worth
Pager 120121.70 1014245.73 125175.00 (5053.80) 4.0- 1059790.00 (45544.27) 4.3-
Cellular 465144.60 2931360.54 696500.00 (231355.40) 33.2- 3152919.00 (221558.46) 7.0-
Cellular-digital 23358.00 214118.00 41608.00 (17750.00) 42.7- 249158.00 (35240.00) 14.1-
Cellular accessories 181265.66 850220.00 100263.00 31002.66 80.9 739621.00 110599.00 15.0
Fax (1855.50) (725.54) .00 (1355.50) .0- .00 (725.54) .0-
Fax accessories 60.76 (104.25) .00 60.76 .0 .00 (104.25) .0-
Automotive electronics 20047.78 169688.48 21000.00 (952.25) 4.5- 178868.00 (9179.52) 5.1-
------------- ------------ ------------ ---------- ---- ------------ ----------
Total Income: TW-D/FW 759142.97 5178802.96 984546.00 (225403.03) 22.9- 5380556.00 (201753.04) 3.8
Cost of Sales: Telephone Warehouse-D/FW
Pagers 120121.70 1014245.73 125175.00 (5053.30) 4.0- 1059790.00 (45544.27) 4.3-
Cellular 465144.60 2931360.54 696500.00 (231355.40) 33.2- 3142919.00 (211538.46) 6.7-
Cellular-digital 23858.00 214118.00 41608.00 (17750.00) 42.7- 249358.00 (35240.00) 14.1-
Cellular accessories 181265.66 850220.00 100263.00 31002.66 30.9 739621.00 110599.00 15.0
Fax (1855.50) (725.54) .00 (1355.50) .0- .00 (725.54) .0-
Fax accessories 60.76 (104.25) .00 60.76 .0 .00 (104.25) .0-
Automotive electronics 20047.75 169688.48 21000.00 (952.23) 4.5- 178868.00 (19179.52) 5.1-
------------- ------------ ------------ ---------- ---- ------------ ----------
Total Cost of Sales: TW-D/FW 759142.97 5178802.96 984546.00 (225403.03) 22.9- 5370556.00 (191753.04) 3.6-
------------- ------------ ------------ ---------- ------------ ----------
Gross Profit: TW-D/FW .00 .00 .00 .00 .0 10000.00 (10000.00)100.0-
Net Profit (Loss): TW/D/FW .00 .00 .00 .00 .0 10000.00 (10000.00)100.0-
============= ============ ============ ========== ============ ==========
33
Period: 12/01/96 to 12/31/96
Reporting-prd Year-to-date Budget-reporting-period Budget-year-to date
amount amount Amount Var-amt Var-% Amount Var-amt Var-%
Income: Telephone Warehouse-San Antonio
Pager 43135.58 169551.18 28620.00 14515.58 50.7 151852.00 17699.18 11.7
Cellular 46092.38 391520.21 71090.00 (24997.62) 35.2- 360042.00 21478.21 6.0
Cellular-digital 906.00 5134.00 .00 906.00 .0 .00 5134.00 .0
Cellular accessories 8881.52 76985.23 7532.00 1349.52 17.9 65364.00 11621.23 17.8
Fax accessories .00 377.40 .00 .00 .0 .00 377.40 .0
Automotive electronics 2446.01 22960.45 2400.00 46.01 1.9 22950.00 10.45 .0
------------ ----------- ----------- ---------- ---- ------------ ----------
Total Income: TW-S/A 101461.49 656528.47 109642.00 (8180.51) 7.5- 600208.00 56320.47 9.4
Cost of Sales: Telephone Warehouse-San Antonio
Pagers 43135.58 169551.18 28620.00 14515.58 50.7 151852.00 17699.18 11.7
Cellular 46092.38 391520.21 71090.00 (24997.62) 35.2- 360042.00 21478.21 6.0
Cellular-digital 906.00 5134.00 .00 906.00 .0 .00 5134.00 .0
Cellular accessories 8891.52 76985.23 7532.00 1349.52 17.9 65364.00 11621.23 17.8
Fax accessories .00 377.40 .00 .00 .0 .00 377.40 .0
Automotive electronics 2446.01 22960.45 2400.00 46.01 1.9 22950.00 10.45 .0
------------ ----------- ----------- ---------- ---- ------------ ----------
Total Cost of Sales: TW-S/A 101461.49 656528.47 109642.00 (8180.51) 7.5- 600208.00 56320.47 9.4
------------ ----------- ----------- ---------- ---- ------------ ----------
Gross Profit: TW-S/A .00 .00 .00 .00 .0 .00 .00 .0
Net Profit (Loss): TW-S/A .00 .00 .00 .00 .0 .00 .00 .0
============ =========== =========== ========== ============ ==========
34
Period: 12/01/96 to 12/31/96
Reporting-prd Year-to-date Budget-reporting-period
amount amount Amount Var-amt Var-%
Income: Telephone Warehouse-KC
Pager 24136.57 192448.64 32256.00 (8119.48) 25.2-
Cellular 77365.12 482137.02 81354.00 (3988.88) 4.9-
Cellular accessories 12482.12 88697.59 6188.00 6294.12 101.7
Fax 1855.50 1354.78 .00 1355.50 .0
Fax accessories .00 117.66 .00 .00 .0
Automotive electronics 2897.87 23990.81 3600.00 (702.13) 19.5-
--------- --------- --------- ---------
Total Income: TW-K/C 118287.18 788746.00 128398.00 (5160.82) 4.2-
Cost of Sales: Telephone Warehouse-KC
Pagers 24136.37 192448.64 32256.00 (8119.48) 25.2-
Cellular 77865.12 482137.02 81354.00 (3988.88) 4.9-
Cellular accessories 12482.12 88697.59 6188.00 6294.12 101.7
Fax 1855.50 1354.78 .00 1355.50 .0
Fax accessories .00 117.66 .00 .00 .0
Automotive electronics 2897.87 23990.81 3600.00 (702.13) 19.5-
--------- --------- --------- ---------
Total Cost of Sales: TW-K/C 118287.18 788746.00 128398.00 (5160.82) 4.2-
--------- --------- --------- ---------
Gross Profit: TW-K/C .00 .00 .00 .00 .0
Net Profit (Loss): TW-K/C .00 .00 .00 .00 .0
========= ========= ========= =========
Budget-year-to-date
Amount Var-amt Var-%
Income: Telephone Warehouse-KC
Pager 165418.00 27030.64 16.3
Cellular 426132.00 56005.02 13.1
Cellular accessories 56584.00 32113.59 56.8
Fax .00 1354.78 .0
Fax accessories .00 117.66 .0
Automotive electronics 15410.00 8580.31 55.7
--------- ---------
Total Income: TW-K/C 663544.00 125202.00 18.9
Cost of Sales: Telephone Warehouse-KC
Pagers 165418.00 27030.64 16.3
Cellular 426133.00 54004.02 12.6
Cellular accessories 56584.00 32113.59 56.8
Fax .00 1354.78 .0
Fax accessories .00 117.66 .0
Automotive electronics 15410.00 8580.31 55.7
--------- ---------
Total Cost of Sales: TW-K/C 663545.00 123201.00 18.5
--------- ---------
Gross Profit: TW-K/C (2001.00) 2001.00 100.0
Net Profit (Loss): TW-K/C (2001.00) 2001.00 100.0
========= =========
35
Period: 12/01/96 to 12/31/96
Reporting-prd Year-to-date Budget-reporting-period
amount amount Amount Var-amt Var-%
Income: Vendors
Pager .00 (6664.82) .00 .00 .0
Cellular 30029.00 924717.22 .00 30029.00 .0
Cellular accessories 34699.52 108885.29 .00 34699.52 .0
Automotive electronics .00 892.80 .00 .00 .0
Freight earned: Vendors .00 (20.00) .00 .00 .0
--------- ---------- --------- ---------
Total Income: Vendors 64728.52 1022760.99 .00 64728.52 .0
Cost of Sales: Vendors
Pagers .00 (6664.32) .00 .00 .0
Cellular 29990.00 933244.82 .00 30029.00 .0
Cellular accessories 34965.52 100077.94 .00 34699.52 .0
Automotive electronics .00 892.80 .00 .00 .0
--------- ---------- --------- ---------
Total Cost of Sales: Vendors 64955.52 1027551.24 .00 64955.52 .0
--------- ---------- --------- ---------
Net Profit (Loss): Vendors (227.00) (4790.25) .00 (227.00) .0-
========= ========== ========= =========
Budget-year-to-date
Amount Var-amt Var-%
Income: Vendors
Pager .00 (6664.82) .0
Cellular .00 924717.22 .0
Cellular accessories .00 103835.29 .0
Automotive electronics .00 892.80 .0
Freight earned: Vendors (20.00)
--------- ----------
Total Income: Vendors .00 1022760.99 .0
Cost of Sales: Vendors
Pagers .00 (6664.32) .0
Cellular .00 933244.82 .0
Cellular accessories .00 100077.94 .0
Automotive electronics .00 892.80 .0
--------- ----------
Total Cost of Sales: Vendors .00 1027551.24 .0
--------- ----------
Net Profit (Loss): Vendors .00 (4790.25) .0-
========= ==========
36
Period: 12/01/96 to 12/31/96
Reporting-prd Year-to-date Budget-reporting-period Budget-year-to-date
amount amount Amount Var-amt Var-& Amount Var-amt Var-%
Income: Credit Memos
Cellular (16888.00) (268285.57) (88500.00) 17167.00 51.2 (315100.00) 51814.43 16.4
Cellular accessories (6070.10) (52684.02) (4000.00) (2070.10) 51.8- (46110.00) (6574.02) 14.3-
Fax .00 (4848.00) (700.00) 700.00 100.0 (3950.00) (898.00) 22.7
Fax accessories .00 (1406.00) (350.00) 350.00 100.0 (1235.00) (171.00) 13.8-
Automotive electronics .00 .00 .00 .00 .0 (4000.00) 4000.00 100.0
Freight earned: Credit memos (267.18) (4900.02) (550.00) 282.87 51.4 (5845.00) 944.98 16.2
---------- ----------- --------- ---------- ----------- ----------
Total Income: Credit Memos (22670.29) (827128.61) (89100.00) (16429.77) 42.0 (376240.00) 49116.89 18.1
Cost of Sales: Credit Memos
Cellular (14819.15) (240001.05) (31825.00) 17005.83 53.4 (176565.00) (63436.05) 35.9-
Cellular accessories (8988.66) (85287.10) (3200.00) (783.66) 24.5- (36288.00) 1000.90 2.8
Fax .00 (4408.50) (680.00) 630.00 100.0 (3545.00) (863.50) 24.4-
Fax accessories .00 (976.89) (280.00) 280.00 100.0 (983.00) 11.11 1.1
---------- ----------- --------- ---------- ----------- ----------
Total Cost/Sales Credit Memos (10802.63) (280678.54) (28935.00) 17132.17 47.7 (217886.00) (68287.54) 29.1-
---------- ----------- --------- ---------- ----------- ----------
Net Profit (Loss) Credit Menus (8867.40) (46450.07) (3165.00) (702.40) 22.2- (158854.00) 112408.93 70.8
========== =========== ========= ========== =========== ==========
Net Income (Loss) Before Tax 181721.84 1287277.29 99462.00 82259.84 32.4 583193.00 704084.29 120.7
Income tax expense 44634.00 426034.00 .00 44634.00 .0 .00 426034.00 .0
---------- ----------- --------- ---------- ----------- ----------
Net Income (Loss) After Tax 87087.84 861243.29 99462.00 (12874.16) 12.4- 583193.00 278050.29 47.7
========== =========== ========= ========== =========== ==========
37
Telephone Warehouse, Inc.
Balance Sheet
As of 12/31/96
Assets
Current Assets
Cash on hand $ 541,202.49
A/R-trade 116,710.98
A/R-allowance doubtful accts (24,225.78)
A/R-AT&T 1,229,803.13
A/R AT&T xx 1,348.14
AR-nsf returned checks 22,944.80
A/R-other 56,777.18
A/R-employee advance/purchase 2,245.28
A/R-child support (701.99)
A/R-student loans (214.60)
A/R-employee purchases (281.76)
Inventory 528,795.86
Inventory reserve (60,727.88)
Intercompany A/R: xx 94,711.80
Intercompany A/R xx 248,181.99
Intercompany A/R: xxx 265,614.77
Prepaid rent 57,479.12
Prepaid xx insurance 2,181.98
Prepaid workers comp insurance 17,087.86
Prepaid HMO health insurance 5,420.77
Prepaid PPO health insurance 1,585.58
----------------
Total current assets $ 3,842,988.72
Fixed assets
Furniture & fixtures $ 178,868.17
Transportation equipment 28,245.18
xxxxx 161,400.12
xxxx 185,007.40
Computer & software equipment 74,801.09
Annualized depreciation (845,771.05)
----------------
Total fixed assets $ 266,785.90
Other assets
Deposits $ 89,160.64
----------------
Total other assets $ 39,160.64
---------------
Total assets $ 3,648,830.26
================
38
Telephone Warehouse, Inc.
Balance Sheet
As of 12/31/96
Liabilities and stockholder's equity
Current Liabilities
A/P-trade $ 1,564,268.05
A/P-accruals 344,288.35
Note Payable-National Cellular 1,000,000.00
Salaries & wages payable 266,396.51
A/P-check request refunds 4,258.98
A/P-AT&T deposits 2,250.00
A/P-customer deposits 68,018.76
A/P-credit union 12.50
S/Security & Fed W/H payable 48,557.04
FUI/SUIA payable 3,014.97
Accrued-property taxes 61,964.41
Accrued-professional 19,500.00
Accrued-franchise tax 17,147.88
----------------
Total current liabilities $ 3,869,198.40
Total long term liabilities $ .00
---------------
Total liabilities $ 3,869,193.40
Stockholders equity
Common stock $ 1,000.00
Retained earnings-prior years (1,834,510.29)
Net Income (loss) 2,118,147.15
----------------
Total equity $ 279,686.86
===============
Total liabilities and equity $ 3,648,330.26
===============
39
Telephone Warehouse, Inc.
Consolidated
Profit & Loss Statement
Period 12/01/96 to 12/31/96
Reporting-prd Year-to-date Budget-reporting-Period Budget-year-to-date
amount amount Amount Var-amt Var-% Amount Var-amt Var-%
------------- ------------ ---------- ---------- ---- ----------- ---------- -----
Income
Pagers ..................... 64744.19 685380.08 61406.00 3338.18 5.4 767422.00 (82091.92) 10.7-
Cellular - digital ......... 27996.50 249968.75 43205.00 (15208.50) 35.2- 201268.00 48680.75 24.2
Cellular ................... 615523.33 4553996.07 858964.00 (243440.62) 28.3- 4848319.00 (294322.93) 6.1-
Cellular accessories ....... 216853.90 1783727.09 244544.00 (27690.10) 11.3- 1844133.00 (60455.910 3.3-
Other equipment ............ 1699.95 5674.45 315.00 1384.95 489.7 2967.00 1707.45 43.0
Alarms ..................... 34429.68 257751.20 58034.00 (23604.32) 47.7- 328870.00 (71118.80) 21.6-
Service parts .............. 56733.00 526676.45 50383.00 6850.00 12.6 491082.00 35594.45 7.2
Non-commissionable labor ... 9015.62 101117.55 10624.00 (1608.38) 15.1- 101423.00 (305.45) .3-
XXX certificates ........... 656.00 4509.00 452.00 204.00 45.1 1002.00 3507.80 350.1
Programming labor-cellular . 44479.87 336681.62 61181.00 (16701.33) 27.3- 350737.00 (14105.58) 4.0-
Programming labor-pager .... 73636.16 492028.67 55980.00 18306.18 33.1 471952.00 20076.67 4.3
Labor ...................... 22185.35 295784.92 54803.00 (32667.65) 59.6- 311722.00 (15937.68) 5.1-
Labor shares ............... 23518.45 203300.21 40041.00 (16527.55) 41.3 255946.00 (52645.79) 20.6-
xxx activators ............. (24.00) 865.10 .00 (24.00) .0- 865.00 865.10 .0
Promotional/Rate plan bonus 37269.77 606797.16 112164.00 (24894.21) 22.2- 665035.00 (58237.84) 8.8-
Loaner phone rental......... 2412.00 35986.82 3103.00 (691.00) 22.3- 38976.00 (2989.18) 7.7-
Service work ............... 28723.81 242117.29 18250.00 5473.81 30.0 235959.00 7058.29 3.0
Freight-in ................. 155.21 1540.18 126.00 29.21 28.2 1328.00 212.13 16.0
Miscellaneous .............. 2500.00 25799.20 2680.00 (329.80) 12.5- 57865.00 (32065.80) 55.4-
xxx connects recovery ...... 7515.32 93928.20 7110.00 405.32 5.7 79425.00 14503.20 18.3
Customer discount-analog ... (546609.30) (3320490.41) (747753.00) 201144.70 26.9 (4014109.00) 193618.59 4.8
Carrier xxx earnee - analog 740320.56 5104960.00 938483.00 (218163.00) 22.8- 5358469.00 (253509.00) 4.7-
Carrier xxx deactivations .. (86850.00) (743292.68) (61101.00) 24751.00 40.5 (76380.00) (16912.63) 2.3
Carrier xx true up ......... 7789.00 191293.00 21719.00 (13930.00) 64.1- 119369.00 71929.00 60.3
Digital rebate paid ........ .00 (100.00) .00 .00 .0 .00 (100.00) .0-
Discount discount - digital. (10209.51) (78465.42) (12087.00) 1877.49 15.5 (76343.00) 5877.58 7.7
Carrier xxx earned - digital 10800.00 69625.00 18035.00 (2235.00) 17.1 47462.00 22163.00 46.7
Carrier xxx deacts - digital (150.00) (1500.00) .00 (150.00) .0- .00 (1500.00) .0-
Residual ................... 240287.49 2689484.82 237000.00 3287.44 1.4 2829500.00 (140015.18) 4.9-
Advertising xxx ............ 142070.40 923573.02 175383.00 (33312.60) 19.0- 380759.00 42814.02 4.9
Airtime certificates ....... 8395.00 114371.85 9706.00 (811.00) 8.4- 116057.00 (1685.15) 1.5-
Pager service .............. 377401.36 4003515.29 372396.00 5005.36 1.3 4023981.00 (20465.71) .5-
Pager service-extended ..... 19918.50 146165.33 14460.00 5458.50 37.7 146893.00 (727.62) .5-
Warranty ................... 6837.28 149585.42 10500.00 (3662.72) 34.9- 133846.00 10789.42 7.7
Vending machine ............ 407.55 3963.85 394.00 13.55 3.4 3985.00 (21.15) .5-
Interest income ............ 3845.72 49380.96 2650.00 1195.72 45.1 61823.00 (912442.04) 20.1-
---------- ----------- --------- --------- ----------- ----------
Total income ............ 2290023.68 19313705.29 2677450.00 (397426.37) 14.8 19966013.00 (652307.71) 3.3-
40
Telephone Warehouse, Inc.
Consolidated
Profit & loss statement
Period: 12/01/96 to 12/31/96
Reporting-prd Year-to-date Budget-reporting-period Budget-year-to-date
amount amount Amount Var-amt Var-% Amount Var-amt Var-%
Cost of Sales
Pages 147022.80 1106547.91 125174.00 218989.30 17.5 1109016.00 (2468.09) .2-
Cellular-digital 21139.91 188749.57 33111.00 (11971.09) 36.2- 144485.00 44264.57 30.6
Cellular 405583.92 3058842.12 554288.00 (148704.08) 26.8- 3244469.00 (195626.88) 5.7-
Cellular accessories 103359.66 800448.36 100263.00 3096.66 3.1 789616.00 10832.36 1.4
Other equipment 8347.49 115271.29 9766.00 (1418.51) 14.5- 99723.00 15548.29 15.6
Alarms 92364.80 176372.45 35982.00 (13617.20) 37.8- 223650.00 (47277.55) 21.1-
Service parts 26548.16 295375.53 28243.00 (1699.84) 6.0- 279833.00 15542.53 5.6
Dealer service 14.98 464.85 .00 14.93 .0 .00 464.85 .0
Credit card finance charge 5161.29 55995.19 4518.00 663.29 14.7 52927.00 8068.19 5.8
Pre tax 29625.08 160664.78 28064.00 5561.09 24.1 158805.00 7859.78 .8
Pager service Telecom. assess 6998.78 81803.75 2703.00 4295.78 158.9 27262.00 4041.75 14.8
Pager retention discount 8559.95 82507.69 9000.00 (460.05) 5.1- 75200.00 7807.69 9.7
Pager retention cost .00 1713.83 .00 .00 .0 1480.00 233.83 15.8
Freight paid 1890.61 14599.67 1203.00 147.61 12.3 11301.00 3298.67 29.2
Pager service 76574.02 889200.87 76000.00 574.08 .8 886670.00 2580.87 .3
Outside labor 8768.09 128100.62 8909.00 (139.91) 1.6- 124134.00 (1088.88) .8-
Airline certificates 27516.00 293988.00 21019.00 6497.00 30.9 184817.00 109671.00 59.5
Inventory adjustment 10229.44 121875.12 2800.00 7429.44 265.8 93471.00 27904.12 29.9
---------- ----------- ---------- ---------- ----------- ----------
Total cost of sales 900218.50 7516521.10 1036043.00 (127832.50) 12.8- 7500859.00 15662.10 .2
---------- ----------- ---------- ---------- ----------- ----------
Gross profit 1971918.18 11797184.19 1641407.00 (269598.87) 16.4- 12465154.00 (667969.81) 5.4-
41
Telephone Warehouse, Inc.
Consolidated
Profit & loss statement
Period: 12/01/96 to 12/31/96
Reporting-prd Year-to-date Budget-reporting-period
amount amount Amount Var-amt Var-%
Operating expenses
Salaries- officers .00 1050000.00 .00 .00 .0
Salaries- accounting admin. 28129.80 254057.37 22000.00 1129.80 5.1
Salaries- sales admin. 68424.48 676180.62 100308.00 (31883.57) 31.8-
Salaries- operations admin. 28807.49 297845.84 19200.00 4107.49 21.4
Salaries- warehouse admin. 6290.01 86206.02 7500.00 (1209.99) 16.1-
Salaries- store manager 48658.00 562175.26 46800.00 1853.00 4.0
Salaries- asst. store manager 49810.52 424650.71 55500.00 (5689.48) 10.8
Salaries- sales persons 106963.98 833392.70 128000.00 (21036.02) 16.4-
Salaries- clerical 11489.56 83923.80 20150.00 (8710.44) 43.2-
Salaries- service manager 85748.50 845464.88 80100.00 5643.50 18.7
Salaries- service persons 82749.81 879274.54 80525.00 2224.81 7.3
Salaries- repair technicians 2257.86 32708.52 3740.00 (1482.14) 39.6-
Salaries- repair dept. 20428.20 288786.80 28530.00 (3106.80) 13.2-
Salaries- pager dept. 88989.64 381803.81 38320.00 119.64 .4
Salary- special promotions .00 40762.99 .00 .00 .0
Payroll taxes- social security 28629.60 846194.47 29574.00 (944.40) 3.2-
Payroll taxes- fed unemployment 1559.86 12517.86 1643.00 (92.20) 5.6-
Payroll taxes- st unemployment 754.67 10609.79 1834.00 (2088.67) 156.6-
Health insurance expense 7048.71 87618.10 8165.00 (1121.29) 19.7-
Training .00 17503.96 .00 .00 .0
Advertising 982123.11 1618195.64 323560.00 8568.12 2.6
Alarm 608.19 6985.18 595.00 18.18 2.2
Auto 2708.68 22483.23 1808.00 (99.66) 5.5-
Bad debts .00 25000.00 2300.00 (2500.00) 100.0-
Bank charges 7.66 975.66 80.00 (22.50) 75.0-
Credit and finance charge 9.09 1417.26 142.00 (182.91) 93.6-
Contract labor .00 .00 200.00 (200.00) 100.0-
Depreciation 17618.93 82131.79 5864.00 11754.55 200.3
Donations .00 875.05 63.00 (63.00) 100.0-
Dues and subscriptions 462.90 2838.83 215.00 267.90 124.6
Awards 2334.62 23331.03 1100.00 1234.62 112.2
Entertainment .00 2500.00 .00 .00 .0
Travel (26.60) 848.07 121.00 (147.60) 122.0-
Postage & Freight 8110.11 82825.24 2483.00 687.42 25.7
Billing- pager dept. 1983.92 69563.00 5800.00 (4466.08) 77.0-
Insurance 9997.00 50814.70 3992.00 .00 .0
Insurance - workers comp 8058.86 78117.65 9281.00 (1227.64) 13.2-
Miscellaneous 75.00 2400.07 .00 75.00 .0
Budget-year-to-date
Amount Var-amt Var-%
Operating expenses
Salaries- officers 1050000.00 .00 .0
Salaries- accounting admin. 254000.00 57.87 .0
Salaries- sales admin. 731887.00 (55756.88) 7.6-
Salaries- operations admin. 297200.00 645.84 .2
Salaries- warehouse admin. 98000.00 (6793.98) 7.3-
Salaries- store manager 567470.00 (5294.64) .9-
Salaries- asst. store manager 411950.00 12700.71 3.1
Salaries- sales persons 879526.00 (46133.30) 5.2-
Salaries- clerical 40657.00 (6733.20) 16.6-
Salaries- service manager 331950.00 18514.88 4.1
Salaries- service persons 368431.00 10843.54 2.9
Salaries- repair technicians 44800.00 (12096.68) 27.0-
Salaries- repair dept. 280080.00 3756.80 1.6
Salaries- pager dept. 376261.00 5542.31 1.5
Salary- social promotions 41880.00 (1117.01) 2.7-
Payroll taxes- social security 348762.00 (2567.58) .7-
Payroll taxes- fed unemployment 12885.00 (817.64) 2.5-
Payroll taxes- st unemployment 12885.00 (2275.21) 17.7-
Health insurance expense 92772.00 (5153.90 5.6-
Training 2789.00 14764.96 539.1
Advertising 1559847.00 58348.64 3.7
Alarm 6865.00 70.18 1.0
Auto 28898.00 (899.75) 3.8-
Bad debts 27500.00 (2500.00) 9.1-
Bank charges 148.00 282.66 162.7
Credit and finance charge 2061.00 (643.74) 31.2-
Contract labor 600.00 (600.00) 100.0-
Depreciation 70403.00 11728.79 16.7
Donations 705.00 (329.95) 46.8-
Dues and subscriptions 2288.00 615.03 27.5
Awards 14750.00 8581.03 58.2
Entertainment .00 2500.00 .0
Travel 2166.00 (1822.93) 61.1-
Postage & Freight 31992.00 833.24 2.6
Billing- pager dept. 65764.00 3799.00 5.8
Insurance 50240.00 74.70 .1
Insurance - workers comp 81026.00 (2908.85) 3.6-
Miscellaneous .00 2400.07 .0
42
Telephone Warehouse, Inc.
Consolidated
Profit & loss statement
Period: 12/01/96 to 12/31/96
Reporting-prd Year-to-date Budget-reporting-period Budget-year-to-date
amount amount Amount Var-amt Var-% Amount Var-amt Var-&
Operating expenses (continue)
Personnel 4275.01 70039.25 4109.00 166.01 4.0 39042.00 30997.25 79.4
Office 6760.77 65038.50 5225.00 1535.77 29.4 67049.00 (2010.50) 3.0-
Collection Fees 27.06 239.23 40.00 (12.94) 32.4- 8645.00 (8405.77) 97.2-
Printing 5750.64 102452.83 6900.00 (1149.36) 16.7- 91825.00 10627.83 11.6
Survey/referral fees .00 9100.88 611.00 (611.00) 100.0- 7303.00 1797.88 24.6
Professional fees 8091.76 20557.76 1806.00 1285.76 71.2 19281.00 1276.76 6.6
Rent 56438.22 681700.56 56878.00 (439.78) .8- 658720.00 22980.56 3.5
Repairs and maintenance 4026.34 105630.58 8200.00 (4173.66) 50.9- 97964.09 7666.58 7.8
Property taxes 2261.00 27132.00 2261.00 .00 .0 27132.00 .00 .0
Other taxes .00 112866.57 9150.00 (9150.00) 100.0- 121500.00 (8633.43) 7.1-
Shop supplies 4799.78 41574.26 3169.00 1630.78 51.5 40632.00 942.26 2.3
Telephone 9735.42 120088.40 9575.00 160.42 1.7 111449.00 8639.40 7.8
Utilities 18077.80 126983.87 9937.00 140.80 1.4 123655.00 8328.87 2.7
Computer (19912.28) 60560.12 3675.00 (28587.28) 641.3- 6233.30 (1827.88) 2.9-
Vending machine 84.19 3714.88 626.00 (541.81) 86.6- 6732.00 (1017.12) 15.1-
Installation 117.41 10634.26 594.00 (476.59) 80.2- 7989.00 2643.26 33.1
Janitorial 3704.92 43119.56 2995.00 709.92 23.7 36842.00 6277.56 17.0
Refreshment 2434.08 17209.71 1570.00 (135.91) 8.7- 15136.00 2078.71 13.7
Cash over and short 360.70 8023.01 .00 860.70 .0 .00 3023.01 .0
Common operating expenses 4246.00 50952.00 4246.00 .00 .0 50952.00 .00 .0
Common operating salaries (11180.00) (116865.00) (11130.00) .00 .0 (116865.00) .00 .0
---------- ----------- ---------- ---------- ----------- ----------
Total operating expenses 967696.42 9684037.04 1040085.00 (82388.58) 7.9- 9606089.00 77948.04 .3
---------- ----------- ---------- ---------- ----------- ----------
Consolidated profit/Class 414116.71 2118147.15 601322.00 (187205.29) 31.1- 2859865.00 (745917.85) 26.1-
========== =========== ========== ========== =========== ==========
43
Telephone Warehouse, Inc.
Profit & loss statement
Administrative
Period: 12/01/96 to 12/31/96
Reporting-prd Year-to-date Budget-reporting-period Budget-year-to-date
amount amount Amount Var-amt Var-% Amount Var-amt Var-%
Income - administrative
Miscellaneous 2300.20 25798.20 2630.00 (329.80) 12.5- 57865.00 (32066.80) 55.4-
Disconnects recovery 7315.32 93928.20 7110.00 405.32 5.7 79425.00 14503.20 18.3
Residual 240287.44 2689484.82 237000.00 3287.44 1.4 2829500.00 (140015.18) 4.9-
Advertising CD-DP carriers 117073.00 811699.62 157883.00 (40310.00) 25.6- 826984.00 (15284.33) 1.8-
Advertising CD-DP Vendors 24997.40 111873.40 18000.00 6997.40 38.9 53775.00 58098.40 108.0
Interest income 3843.72 49380.96 2650.00 1195.72 45.1 61823.00 (12442.04) 20.1-
--------- ---------- ---------- --------- ---------- ----------
Total administrative income 396019.08 3782165.20 424773.00 (28758.92) 6.8- 3909872.00 (127206.80) 3.3-
44
Period: 12/01/96 to 12/31/96
Reporting-prd Year-to-date Budget-reporting-period Budget-year-to-date
amount amount Amount Var-amt Var-% Amount Var-amt Var-%
Expenses - Administrative
Credit card finance charge 9.09 1417.26 142.00 (132.91) 98.6- 2061.00 (643.74) 31.2-
Freight paid .00 25.80 .00 .00 .0 .00 25.80 .0
Inventory adjustment .00 56000.00 .00 .00 .0 56000.00 .00 .0
Salaries- officers .00 1050000.00 .00 .00 .0 1050000.00 .00 .0
Salaries- accounting admin. 28129.80 254057.87 22000.00 1129.80 5.1 254000.00 57.37 .0
Salaries- sales admin. 68424.48 676130.62 100308.00 (31883.57) 31.8- 731887.00 (55756.38) 7.6-
Salaries- operations admin. 28807.49 297845.84 19200.00 4107.49 21.4 297200.00 645.84 .2
Salaries- warehouse admin. 6290.01 86206.02 7500.00 (1209.99) 16.1- 93000.00 (6793.98) 7.3-
Payroll taxes- social security 7102.84 98518.04 6694.00 408.84 6.1 98259.00 259.04 .3
Payroll taxes - fed unemployment 338.00 2444.03 317.00 21.00 6.6 2442.00 2.03 .1
Payroll taxes - SUTA 168.27 2420.48 271.00 (107.73) 39.8- 2559.00 (138.52) 5.4-
Health insurance expense 1408.74 20036.36 1900.00 (491.26) 25.9- 21525.00 (1488.64) 6.9-
Training .00 17503.96 .00 .00 .0 2789.00 14764.96 539.1
Advertising - cellular 296880.77 1324016.57 287412.00 6468.77 2.8 1313543.00 10473.57 .8
Advertising - vehicle security 610.38 11132.12 556.00 54.38 9.8 12869.00 (1236.88) 10.0-
Advertising - pagers 86022.21 223419.16 34342.00 1680.21 4.9 212821.00 10598.16 5.0
Advertising-signs & displays 1609.76 48705.24 1250.00 359.76 28.8 17540.00 31165.24 177.7
Adverising-shows & promos .00 50.00 .00 .00 .0 .00 50.00 .0
Alarm 76.79 625.84 62.00 14.73 28.8 462.00 163.84 85.5
Auto 1846.35 16627.50 1377.00 (30.65) 2.2- 16954.00 (326.50) 1.9-
Bad debt .00 25000.00 2500.00 (2500.00) 100.0- 27500.00 (2500.00) 9.1-
Bank charges 7.50 375.66 30.00 (22.50) 75.0- 148.00 232.66 162.7
Contract labor .00 .00 200.00 (200.00) 100.0- 600.00 (600.00) 100.0-
Depreciation 9355.86 21500.52 1104.00 8251.86 747.5 13248.00 8252.52 62.3
Donations .00 375.05 63.00 (63.00) 100.0- 705.00 (329.95) 46.8-
Dues & subscriptions 268.00 1831.10 215.00 48.00 22.8 2218.00 (381.90) 17.3-
Awards 2334.62 22868.66 1100.00 1234.62 112.2 14050.00 8813.66 62.7
Entertainment .00 2500.00 .00 .00 .0 .00 2500.00 .0
Travel (26.60) 848.07 121.00 (147.60) 122.0- 2166.00 (1322.98) 61.1-
Postage & Freight 1712.90 21839.78 1868.00 (155.10) 8.9- 25893.00 (4003.22) 15.5-
Insurance 138.00 1808.70 138.00 .00 .0 1734.00 74.70 4.3
45
Period: 12/01/96 to 12/31/96
Reporting-prd Year-to-date Budget-reporting-period Budget-year-to-date
amount amount Amount Var-amt Var-% Amount Var-amt Var-%
Expenses - Administrative (continue)
Insurance - workers comp. 335.61 4319.80 425.00 (89.39) 21.0- 4444.00 (124.20) 2.8-
Miscellaneous .00 139.64 .00 .00 .0 .00 139.64 .0
Personnel 4725.01 57758.40 2958.00 1317.01 44.5 26056.00 31702.40 121.7
Office 2956.75 28302.73 2500.00 456.75 18.3 30549.00 (2246.27) 7.4-
Collection fee .00 667.11 103.00 (103.00) 100.0- 1312.00 (644.89) 49.2-
Collections - WSF checks 27.06 (427.88) (63.00) 90.06 143.0 7333.00 (7760.88) 105.8-
Printing 884.15 12590.41 900.00 (15.85) 1.8- 11698.00 892.41 7.6
Professional Fees 2671.31 17165.48 1394.00 1277.31 91.6 15907.00 1258.48 7.9
Rent 5171.28 58085.38 3800.00 (628.72) 10.3- 49580.00 9505.33 19.6
Repairs & maintenance 1081.43 24020.87 2500.00 (1418.52) 56.7- 25250.00 (1229.13) 4.9-
Other taxes .00 112850.00 9150.00 (9150.00) 100.0- 121500.00 (9150.00) 7.5-
Telephone 2967.52 30558.84 2725.00 242.52 8.9 29043.00 1515.84 5.2
Utilities 1089.91 13589.95 1250.00 (160.09) 12.8- 13153.00 436.95 3.3
Computer (16041.49) 26846.03 1150.00 (17191.49) 999.9- 36074.00 (9227.97) 25.6-
Vending (383.48) 96.92 84.00 (467.48) 556.5- 1128.00 (1031.03) 91.4-
Interest .00 1809.99 .00 .00 .0 .00 1809.99 .0
Janitorial 416.95 5571.24 350.00 66.95 19.1 4426.00 1145.24 25.9
Refreshment 529.86 3211.52 1100.00 (570.14) 51.3- 9300.00 (1088.48) 11.7-
Common operating expenses 1246.00 50952.00 4246.00 .00 .0 50952.00 .00 .0
Common operating salaries (11130.00) (116865.00) (11130.00) .00 .0 (116865.00) .00 .0
--------- ---------- --------- --------- ---------- ----------
Total expenses-administrative 476603.87 4621913.18 516112.00 (39508.93) 7.7- 4593453.00 28460.18 .6
--------- ---------- --------- --------- ---------- ----------
Net profit (loss) (80583.99) (839747.98) (91339.00) 10755.01 11.8 (684081.00) (155666.93) 22.3-
========= ========== ========= ========= ========== ==========
46
Telephone Warehouse, Kansas City
Balance Sheet
As of 12/31/96
Assets
Current assets
Cash on hand $285,897.22
A/R-Cellularune 216,586.57
A/R-trade 299.55
A/R-allow for doubtful accts. (1,437.98)
A/R-asf returned checks 4,074.09
Intercompany A/R: NCI 4,562.05
Inventory 207,113.05
Inventory valuation reserve (2,301.62)
Prepaid rent 12,633.18
-----------
Total current assets $726,932.11
Fixed assets
Office equipment $ 15,750.72
Signs & displays 81,652.38
Test equipment 20,698.48
Leasehold improvements 29,274.56
Computer & software equipment 2,194.62
Accumulated depreciation (84,258.28)
-----------
Total fixed assets $115,312.53
Other assets
Deposits $ 28,277.80
-----------
Total other assets $ 23,177.80
-----------
$863,422.44
===========
47
Telephone Warehouse -- Kansas City
Balance Sheet
As of 12/31/96
Liabilities and stockholder's equity
Current Liabilities
A/P-trade $ 360,392.25
A/R-accruals 69,261.88
A/P-check request refunds 1,053.95
A/P-CellOne deposits .00
A/R-customer deposits 21,050.00
A/R-salaries & wages 22,979.96
Intercompany A/P: TW/DFW 205,614.77
Intercompany A/P: TW-S/A 4,022.58
Sales tax payable-Missouri 3,588.75
Sales tax payable -Kansas 2,379.34
Use tax payable 7,597.71
Payroll taxes payable 4,474.38
Accrued-insurance 6,740.25
Accrued-property taxes 2,333.89
Accrued-professional 20,460.15
Accrued-interest 20,460.15
----------------
Total current liabilities $ 736,676.86
Long term liabilities
Note payable-shareholder $ 590,000.00
---------------
Total long term liabilities $ 590,000,00
---------------
Total liabilities $ 1,326,676.86
Stockholders equity
Common stock $ 1,000.00
Retained earnings-prior years (419,280.26)
Net Income (loss) (42,974.16)
----------------
Total equity $ (461,254.42)
----------------
Total liabilities and equity $ 865,422.44
================
48
Telephone Warehouse, Kansas City
Classification
Profit & loss statement
Period 12/01/96 to 12/31/96
Reporting-prd Year-to-date Budget-reporting-period Budget-year-to-date
amount amount Amount Var-amt Var-% Amount Var-amt Var-%
Total equipment sales 127792.26 1020104.61 151415.00 (13622.74) 9.0 1015655.00 4449.61 .4
Total labor income 25487.45 146898.24 24643.00 844.45 3.4 140990.00 5908.24 4.2
Coe activations .00 (288.00) .00 .00 .0 .00 (238.00) .0-
Volume bonus income 86900.00 74075.00 28000.00 8900.00) 31.8 45300.00 28775.00 63.5
Misc. income all stores 1505.41 14097.15 1815.00 (309.59 17.1- 16713.00 (2615.00) 15.7-
Customer discount (97048.52) (684419.72) (124000.00) 26156.48 21.1 (694954.00 10534.28) 1.5
Commission earned all stores 146900.00 1028075.00 182800.00 (35900.00 19.6- 1018138.00 9937.00 1.0
Commission: all stores (7050.00) (74125.00) (7656.00) 606.00 7.9 (88316.00) 14191.00 16.1
Commission trueup: all stores (722.94) (10915.69) 606.00 (1878.94) 227.5- 322.00 (11237.69) 999.9-
Residuals 9557.84 82495.66 7500.00 2057.84 27.4 74209.00 8286.66 11.2
Advertising CO-DP 16079.55 182756.83 28600.00 (12520.45) 43.8 161327.00 21429.83 13.3
Pager income all stores 40778.76 307667.73 39975.00 803.73 2.0- 284437.00 23170.73 8.1
Pager service extended 206.85 2013.45 432.00 (225.15) 52.1 3014.00 (1000.55) 33.2-
Warranty 15.00 950.00 175.00 (160.00) 91.4- 787.00 168.00 20.7
--------- ---------- --------- --------- ---------- ---------
Total Income 309556.63 2089435.26 334305.00 (24746.37) 7.4- 1977682.00 111758.26 5.7-
Cost of Sales
Total equipment cost of sales 116069.25 770452.87 123792.00 (7632.77) 6.2- 771862.00 (1409.13) .2-
Use tax 4115.95 22362.28 2987.00 1128.95 37.8 22722.00 (359.72) 1.6-
Freight paid 622.77 4555.65 286.00 336.77 117.8 3222.00 1333.65 41.4
Warranty expense 197.00 1997.13 386.00 (189.00) 49.0- 2689.00 (691.87) 25.7-
Pager service 6284.64 67432.50 7400.00 (1115.36) 15.1- 64150.00 3282.80 5.1
Pager retention discount 879.90 6169.80 800.00 79.90 10.0 4483.00 1686.80 37.6
Inventory adjustment 2919.30 19675.59 800.00 2119.30 264.9 12500.00 7175.59 57.4
--------- ---------- --------- --------- ---------- ---------
Total cost of sales 181088.79 892646.12 136361.00 (5272.21) 3.9- 831628.00 11018.12 1.3
--------- ---------- --------- --------- ---------- ---------
Gross profit 178467.84 1196789.14 197944.00 (19476.16) 9.8- 1096054.00 100735.14 9.2
========= ========== ========= ========= ========== =========
Operating Expenses
Expenses - Administrative 82485.76 526443.15 77599.00 4886.76 6.3 511683.00 14760.15 2.9
Expenses - Bannister 17805.71 187532.97 17996.00 (190.29) 1.1- 184903.00 2629.97 1.4
Expenses - Independence 22100.50 191446.12 19751.00 2349.58 11.9- 181510.00 9936.12 5.5
Expenses - Overland Park 22076.10 184930.38 23032.00 (955.90) 4.2- 180842.00 4088.38 2.3
Expenses - Gladstone 15518.87 148020.86 18123.00 (2604.13) 14.4- 152460.00 (9439.14) 6.2-
Expenses - Pager dept. 421.09 6389.82 520.00 (98.91) 19.0- 6255.00 134.82 2.2
--------- ---------- --------- --------- ---------- ---------
Total expenses 160408.11 1239763.30 157021.00 3397.11 2.2 1217653.00 22110.38 1.8
Net profit (loss) 18059.78 (42974.16) 40923.00 (22863.27) 55.9- (121599.00) 78624.84 64.7
========= ========== ========= ========= ========== =========
49
Telephone Warehouse, Kansas City
Consolidated
Profit & loss statement
Period: 12/01/96 to 12/31/96
Reporting-prd Year-to-date Budget-reporting-period Budget-year-to-date
amount amount Amount Var-amt Var-% Amount Var-amt Var-%
Income
Pagers 11128.27 116930.29 10944.00 184.27 1.7 133009.00 (16077.71) 12.1-
Cellular 102239.79 717221.25 119574.00 (17324.21) 14.5- 706474.00 10747.25 1.5
Cellular accessories 16109.89 137959.17 14390.00 1719.89 12.0 128242.00 9717.17 7.6
Other equipment .00 399.95 0.00 0.00 .0 975.00 (75.05) 7.7-
Alarms 4547.63 27170.55 3690.00 875.63 23.2 30519.00 (3348.45 11.0-
Service parts 3251.68 13363.83 2185.00 1066.68 48.8 10665.00 2698.83) 25.3
Dealer service 440.00 4451.12 394.00 46.00 11.7 4716.00 (264.88) 5.6-
Programming labor-pager 16410.00 81527.00 13800.00 2610.00 18.9 73608.00 7919.00 10.8
Gift certificates 73.00 2108.45 238.00 (163.00) 68.5- 1056.00 1052.45 99.7
Programming labor-cellular 6855.00 44145.14 7800.00 (1445.00) 18.9- 43863.00 277.14 .6
Labor - misc 549.95 2643.95 275.00 274.95) 100.0- 2520.00 123.95 4.9
Labor alarms 2172.56 18582.15 2768.00 (595.50) 21.5- 20944.00 (2411.85) 11.5-
COE activation .00 (238.00) .00 .00 .0- .00 (238.00) .0-
Volume bonus 36900.00 74075.00 28000.00 8900.00 31.8 45300.00 28775.00 63.5
Miscellaneous 56.46 2065.30 215.00 (158.54) 73.7- 1971.00 94.30 4.3
Disconnects recovery 1443.95 12081.85 1600.00 (151.05) 9.4 14742.00 (2710.15) 18.4-
Customer discount (97843.52) (684419.72) (124000.00) 26156.48 21.1 (694954.00) 10534.28 1.5
Commission earned 146900.00 1028075.00 182800.00 (35900.00) 19.6- 1018139.00 9937.00 1.0
Commission deacts (7050.00) (74125.00) (7656.00) 606.00 7.9 (88316.00) 14191.00 16.1
Commission trueup (772.94) (10915.69) 606.00 (1378.94) 227.5- 322.00 (11237.69) 999.9-
Residuals 9357.34 82495.66 7500.00 2057.84 27.4 74209.00 8286.66 11.2
Advertising 16079.38 182756.88 28600.00 (12520.45) 43.8- 161327.00 21429.83 13.3
Pager service 40778.73 307667.73 39975.00 803.73 2.0 284497.00 23170.73 8.1
Pager service extended 206.35 2013.45 432.00 (225.15) 52.1- 3014.00 91000.55) 33.2-
Warranty 15.00 950.00 175.00 (160.00) 91.4- 737.00 163.00) 20.7
--------- ---------- --------- --------- ---------- ----------
Total income 809556.63 2089435.26 334805.00 (24748.37) 7.4- 1977682.00 111753.26 5.7
Pagers 81706.69 184479.39 32256.00 (549.31) 1.7- 194944.00 (10464.61) 5.4
Cellular 71000.82 480468.44 81353.00 (10352.18) 12.7- 482149.00 (1680.56) .3
Cellular accessories 9089.95 71543.60 6187.00 2902.95 46.9 61762.00 9781.60 15.8
Other equipment 755.27 4186.04 326.00 492.27 131.7 2794.00 1392.04 49.8
Alarms 2888.88 16566.82 2066.00 317.88 15.4 20288.00 (3721.18) 18.3
Service parts 768.80 8395.50 1092.00 (328.70) 29.6- 5700.00 2695.50 47.3
Credit card finance charges 364.32 4813.09 422.00 (57.68) 13.7 4225.00 568.08 13.9
Use tax 4115.93 22362.28 2987.00 1128.95 37.8 22722.00 (359.72) 1.6-
Freight paid 622.77 4555.65 286.00 336.77 117.8 3222.00 1333.65 41.4
Pager service 6284.64 67432.80 7400.00 (1115.36) 15.1- 64150.00 3282.80) 5.1
Pager retention discount 879.90 6169.80 800.00 79.90 10.0 4483.00 1686.80) 37.6
Outside labor 197.00 1997.13 386.00 (189.00) 49.0- 2689.00 9691.87) 25.7
Inventory adjustment 2919.30 19675.59 800.00 2119.30 264.9 12500.00 7175.59) 57.4
--------- ---------- --------- --------- ---------- ----------
Total cost of sales 181088.79 892646.12 136361.00 (5272.21) 3.9- 881628.00 11016.12 1.3
--------- ---------- --------- --------- ---------- ----------
Gross profit 178467.84 1196789.14 197944.00 (19476.16 9.8 1096054.00 1096054.00 9.2
50
Telephone Warehouse, Kansas City
Consolidated Profit & Loss Statement
Period 12/01/96 to 12/31/96
Reporting-prd Year-to-date Budget-reporting-period Budget-year-to-date
amount amount Amount Var-amt Var-% Amount Var-amt Var-%
Operating expenses
Salaries - operations admin. 5095.54 55683.78 4320.00 775.54 18.0 55540.00 148.78 .3
Salaries - store manager 15555.46 159775.33 16000.00 (444.54) 2.8- 157000.00 2775.33 1.8
Salaries - asst. store manager 5397.57 67100.73 12500.00 (7102.43) 56.8- 84020.00 (16919.27) 20.1
Salaries - salespersons 14510.56 126572.28 16800.00 (2289.44) 13.6- 127950.00 (1377.72) 1.1-
Salaries - service manager 1476.20 18691.81 2050.00 (573.80) 28.0- 19478.00 (786.19) 4.0-
Salaries - installers 5805.86 37459.86 3100.00 2205.86 71.2 30452.00 7007.36 23.0
Payroll taxes-social security 3291.52 35025.08 3676.00 (384.48) 10.5- 35633.00 (607.92) 1.7-
Payroll taxes-fed unemployment 155.28 1392.99 173.00 (17.72) 10.2- 1425.00 (32.01) 2.2-
Payroll taxes-st unemployment 456.65 5396.91 684.00 (227.35) 33.2- 5786.00 (389.09) 6.7-
Training .00 2448.19 206.00 (206.00) 100.0- 1098.00 1350.19 123.0
Advertising 65917.85 317262.38 62915.00 3002.85 4.8 309482.00 7780.38 2.5
Alarm 113.67 1780.83 152.00 (38.33) 25.2- 1824.00 (43.17) 2.4-
Auto 523.55 6680.26 534.00 (10.45) 2.0- 6768.00 (87.74) 1.3-
Bad debts 500.00 6000.00 500.00 .00 .0 6000.00 .00 .0
Payroll fees - ADP 347.75 3962.60 348.00 (.25) .1- 4091.00 (128.40) 3.1-
Bank charges .00 510.63 59.00 (59.00) 100.0- 649.00 (138.37) 21.3-
Depreciation 5489.50 19245.66 1250.00 4239.50 339.2 15009.00 4236.66 28.2
Dues and subscriptions 43.87 915.94 100.00 (54.63) 54.6- 567.00 348.94 61.5
Awards .00 1571.20 .00 .00 .0 190.00 1381.20 726.9
Travel .00 3864.48 237.00 (237.00) 100.0- 1282.00 2582.48 201.4
Freight/postage & billing 1162.78 10372.67 815.00 347.78 42.7 8944.00 1428.67 16.0
Insurance 688.00 7803.00 624.00 9.00 1.4 7794.00 9.00 .1
Insurance-workers comp 417.89 3960.32 586.00 (168.11) 28.7- 4138.00 (177.68) 4.3-
Personnel 2037.59 8376.23 411.00 1626.59 395.8 6449.00 1927.23 29.9
Office 614.91 5156.58 400.00 214.91 53.7 5450.00 (293.47) 5.4-
Collection fees .00 1038.83 5.00 (5.00) 100.0- 952.00 186.88 14.4
Collection-ASf check .00 (275.72) (46.00) 46.00 100.0 (391.00) 115.28 29.5
Printing 702.58 12806.48 1150.00 (447.42) 38.9- 15175.00 (2368.52) 15.6-
Survey/referral fees 375.00 4341.68 333.00 42.00 12.6 2135.00 2206.68 103.4
Professional fees 80.00 3970.00 80.00 .00 .0 4117.00 (147.00) 3.6-
License & permits .00 726.83 .00 .00 .0 .00 726.83 .0
Rent 16421.41 151328.81 16388.00 33.41 .2 146801.00 4527.81 3.1
Repairs and maintenance 683.88 6690.96 425.00 178.88 42.1 5640.00 1020.96 18.1
Property taxes 400.00 4800.00 400.00 .00 .0 4800.00 .00 .0
Other taxes .00 296.00 .00 .00 .0 .00 296.00 .0
Shop supplies 576.90 3644.67 60.00 516.90 861.5 1656.00 1988.67 120.1
Telephone 1364.96 17670.70 1463.00 (98.04) 6.7- 19187.00 (1516.30) 7.9-
Utilities 1994.45 23432.43 2175.00 (180.55) 8.3- 24729.00 (1296.57) 5.2-
Computer 108.70 2207.17 228.00 (119.30) 52.3- 3851.00 (1643.83) 42.7-
Interest .00 36982.62 .00 .00 .0 36983.00 (.38) .0-
Installation 2045.66 3545.50 20.00 2025.66 999.9 534.00 3011.50 564.0
Janitorial 653.66 4506.25 195.00 158.66 81.4 2360.00 2146.25 90.9
Refreshment 565.45 3847.25 140.00 425.45 303.9 2020.00 1827.25 90.5
Cash over and short 202.01 1088.65 .60 202.01 .0 .00 1088.65 .0
Common operating salaries 5565.00 50085.00 5565.00 .00 .0 50085.00 .00 .0
------------- ------------ ----------- ------------ ---------- ---------
Total operating expenses 160400.11 1239763.30 157021.00 3387.11 2.2 1217653.00 22110.30 1.8
------------- ------------ ----------- ------------ ---------- ---------
Consolidated profit/ (loss) 18059.78 (42974.16) 40923.00 (22863.27) 55.9 (121599.00) 78624.84 64.7
============= ============ =========== ============ ========== =========
51
Telephone Warehouse, Kansas City
Profit & loss statement
Administrative
Period: 12/01/96 to 12/31/96
Reporting-prd Year-to-date Budget-reporting-period Budget-year-to-date
amount amount Amount Var-amt Var-% Amount Var-amt Var-%
Income-administrative
Miscellaneous 56.46 2065.30 215.00 (158.54) 73.7- 1971.00 94.30 4.8
Disconnects recovery 1448.95 12031.85 1600.00 (151.05) 9.4- 14742.00 (2710.15) 18.4-
Residuals 9557.84 32495.66 7500.00 2057.84 27.4 74209.00 8286.66 11.2
Advertising CO-OP Cellular Inc 12279.55 146910.86 28600.00 (16320.45) 57.1- 148127.00 (1216.14) .8-
Advertising CO-OP Vendors 3800.00 35845.97 .00 3800.00 .0 13200.00 22645.97 171.6
---------- --------- --------- --------- --------- ---------
Total administrative income 27142.80 279349.64 37915.00 (10772.20) 28.4 252249.64 27100.64 10.7
Cost of sales - Administrative
Freight paid .00 57.34 .00 .00 .0 .00 57.34 .0
Inventory adjustments .00 2100.00 .00 .00 .0 2100.00 .00 .0
---------- --------- --------- --------- --------- --------
Total cost of sales - Admin .00 2157.84 .00 .00 .0 2100.00 57.34 2.7
---------- --------- --------- --------- --------- --------
Gross profit- Administrative 27142.90 277192.80 37915.00 (10772.20) 28.4- 250149.00 27043.30 10.8
52
Period: 12/01/96 to 12/31/96
Reporting-prd Year-to-date Budget-reporting-period Budget-year-to-date
amount amount Amount Var-amt Var-% Amount Var-amt Var-%
Expenses Administrative
Salaries-operations admin. 5095.54 55683.78 4320.00 775.54 18.0 55540.00 143.78 .3
Payroll taxes-social security 271.15 4124.42 230.00 41.15 17.9 4095.00 29.42 .7
Payroll taxes-fed unemployment 16.33 103.15 14.00 2.33 16.6 102.00 1.15 1.1
Payroll taxes-st unemployement 38.38 488.13 61.00 (22.62) 37.1- 506.00 (17.87) 3.5-
Training .00 2448.19 206.00 (206.00) 100.0- 1098.00 1350.19 123.0
Advertising-cellular 57251.26 278364.53 53285.00 8966.26 7.4 273069.00 5295.53 1.9
Advertising-vehicle security 264.00 2487.52 136.00 128.00 94.1 2279.00 208.52 9.2
Advertising-pagers 7964.88 32796.88 9194.00 (1229.12) 13.4- 32344.00 452.88 1.4
Advertising-signs & displays 437.71 3613.45 300.00 137.71 45.9 1790.00 1823.45 101.9
Auto 463.57 6326.84 511.00 (47.43) 9.3- 6457.00 (130.16) 2.0-
Bad debt 300.00 6000.00 500.00 .00 .0 6000.00 .00 .0
Payroll fees - ADP 347.75 3962.60 348.00 (.25) .1- 4091.00 (128.40) 3.1-
Bank charges .00 510.63 59.00 (59.00) 100.0- 649.00 (138.37) 21.3-
Dues & subscriptions 45.37 899.74 100.00 (54.63) 54.6- 567.00 332.74 58.7
Awards .00 1571.20 .00 .00 .0 190.00 1381.20 726.9
Travel .00 3864.48 237.00 (237.00) 100.0- 1282.00 2582.48 201.4
Postage & Freight 750.39 4625.02 255.00 495.69 194.4 2953.00 1672.02 56.6
Insurance 9.00 99.00 9.00 .00 .0 99.00 .00 .0
Insurance-workers comp. 9.56 104.51 8.00 1.56 19.5 102.00 2.51 2.5
Personnel 1037.57 8376.23 411.00 1626.59 395.3 6449.00 1927.23 29.9
Office 84.12 1900.74 200.00 (115.88) 57.9- 2350.00 (449.26) 19.1-
Collection Fee .00 1088.83 5.00 (5.00) 100.0- 952.00 136.83 14.4
Collections - NSF checks .00 (275.72) (46.00) 46.00 100.0 (391.00) 115.28 29.5
Printing 20.12 1803.03 350.00 (329.38) 94.3- 2800.00 (1496.97) 53.5-
Survey/referral fees 373.00 3215.00 333.00 42.00 12.6 1901.00 1314.00 69.1
Professional fees .00 3810.00 .00 .00 .0 4037.00 (227.00) 5.6-
Rent 354.23 3554.02 320.00 34.23 10.7 2240.00 1314.02 58.7
Repairs & maintenance 5.61 293.85 25.00 (19.39) 77.6 250.00 43.85 17.5
Other taxes .00 296.00 .00 .00 .0 .00 296.00 .0
Telephone 167.32 3328.28 280.00 (114.48) 40.9- 4789.00 (1460.80) 30.5-
Utilities 36.96 1073.91 75.00 (18.04) 24.1- 1249.00 (175.09) 14.0-
Computer 108.70 2207.17 228.00 (119.30) 52.3- 3851.00 (1643.83) 42.7-
Interest .00 36982.62 .00 .00 .0 36983.00 (.38) .0-
Janitorial 48.48 503.25 40.00 8.48 21.2 445.00 58.25 13.1
Refreshment 199.24 626.95 40.00 159.24 398.1 480.00 146.95 30.6
Common operating salaries 5565.00 50085.00 5565.00 .00 .0 50085.00 .00 .0
---------- ---------- --------- -------- ---------- --------
Total expenses-administrative 82485.76 526443.15 77599.00 4886.76 6.3 511683.00 14760.15 2.9
Net profit (loss) (55342.96) (249250.85) (39684.00) (15658.96) 39.5- (261534.00) 12283.15 4.7
========== ========== ========= ======== ========== ========
53
Telephone Warehouse -- Kansas City
Profit & loss statement
Bannister Store
Period: 12/01/96 to 12/31/96
Reporting-prd Year-to-date Budget-reporting-period Budget-year-to-date
amount amount Amount Var-amt Var-% Amount Var-amt Var-%
Income - Bannister
Pagers 1778.15 36723.15 2918.00 (1139.85) 39.1- 37078.00 (354.85) 1.0-
Cellular 21135.61 202984.09 33879.00 (12743.39) 37.6- 214812.00 (11827.91) 5.5-
Cellular accessories 3996.86 42431.62 3847.00 149.86 3.9 39090.00 3341.62 8.5
Alarms 1941.14 8502.45 840.00 1101.14 131.1 8330.00 172.45 2.1
Service parts 727.54 3163.80 716.00 11.54 1.6 3179.00 (15.20) .5-
Non-commisionable labor 120.00 1451.68 142.00 (22.00) 15.5- 2068.00 (616.32) 29.8-
Programming labor-pager 4110.00 21305.00 3680.00 430.00 11.7 19210.00 2095.00 10.9
Gift certificates .00 41.65 .00 .00 .0 8.00 33.65 420.6
Programming labor-cellular 1820.00 11819.09 2210.00 (890.00) 40.3- 13461.00 (1641.99) 12.2-
Labor 195.00 729.00 78.00 27.00 34.6 765.00 (36.00) 4.7
Labor alarms 1075.00 7931.50 630.00 445.00 70.6 5861.00 2070.50 35.3
CDE activation .00 12.00 .00 .00 .0 .00 12.00 .0
Volume bonus 7800.00 17650.00 6500.00 1300.00 20.0 10850.00 6800.00 62.7
Customer discount (20086.80) (196892.75) (35850.00) 15813.20 44.1 (214597.00) 17704.25 8.3
Carrier comm earned 32425.00 307225.00 50860.00 (17935.00) 35.6- 312109.00 (4884.00) 1.60-
Carrier comm deactivations (4725.00) (31375.00) (3190.00) (1535.00) 48.1- (33426.00) 2051.00 6.1
Carrier comm true-up (424.94) (1433.76) 6.00 (430.94) 999.9- 710.00 (2143.76) 301.9-
Pager service 4936.00 27465.07 5040.00 (84.00) 1.7- 27673.00 (207.93) .8-
---------- ----------- --------- ---------- ----- ----------- ----------
Total income - Bannister 56808.56 459733.39 71806.00 (15502.44) 21.6- 447181.00 12552.59 2.3
Cost of sales - Bannister
Pagers
Pagers 7524.54 51772.41 8602.00 (1077.46) 12.5- 54029.00 (2256.59) 4.2-
Cellular 14185.85 184607.98 28050.00 (8914.65) 38.7- 143104.00 (13496.07) 9.1-
Cellular accessories 2189.02 20464.40 1654.00 529.02 32.0 18711.00 1753.40 9.4
Other equipment 109.26 897.97 69.00 40.26 58.3 513.80 384.97 75.0
Alarms 906.65 5394.48 470.00 436.63 92.9 5703.00 (308.52) 5.4-
Service parts 38.92 2403.73 858.00 (269.08) 75.2- 1813.00 590.73 32.6
Credit card finance charge 68.58 921.88 74.00 (10.42) 14.1- 870.00 51.38 5.9
Use tax 1054.18 6517.05 841.00 213.18 25.3 6904.00 (386.95) 5.6-
Freight paid 141.78 1017.59 68.00 78.78 108.4 886.00 131.59 14.9
Outside labor 120.00 450.00 51.00 69.00 135.3 818.00 147.00 47.0
Inventory adjustment 8826.66 6799.97 200.00 3126.66 999.9 2600.00 4199.97 161.5
---------- ----------- --------- ---------- ----------- ----------
Total cost of sales-Bannister 29658.87 281256.91 35437.00 (578.13) 16.3- 240446.00 (9189.09) 8.8-
---------- ----------- --------- ---------- ----------- ----------
Gross profit-Bannister 26649.69 228476.68 36369.00 (9719.31) 26.7- 206735.00 21741.68 10.5
54
Period 12/01/96 to 12/31/96
Reporting-prd Year-to-date Budget-reporting-period Budget-year-to-date
amount amount Amount Var-amt Var-% Amount Var-amt Var-%
Salaries-store manager 2852.14 36498.07 3200.00 (347.86) 10.9- 36200.00 293.07 .8
Salaries-asst. store manager 1405.52 28915.21 2500.00 (1094.48) 43.8- 26700.00 (2784.79) 10.4-
Salaries-salespersons 4584.22 25499.56 4200.00 384.21 9.1 27600.00 (2100.44) 7.6-
Salaries-service manager .00 (249.51) .00 .00 .0 .00 (249.51) .0-
Salaries-installers 1597.62 22153.43 1550.00 47.62 3.1 18600.00 3553.48 19.1
Payroll taxes-social security 768.17 8180.34 843.00 (74.83) 8.9- 8432.00 (301.66) 3.6-
Payroll taxes-fed unemployment 82.82 323.17 86.00 (3.18) 8.8- 339.00 (15.83) 4.7-
Payroll taxes-st unemployment 110.70 1467.78 158.00 (47.30) 29.9- 1584.00 (116.22) 7.3-
Alarm 37.89 454.68 38.00 (.11) .3- 436.00 (1.32) .3-
Auto .00 81.12 9.00 (9.00) 100.0- 121.00 (39.88) 33.0-
Depreciation 1162.15 7679.65 592.00 570.15 96.3 7118.00 566.65 8.0
Postage & Freight .00 116.80 10.00 (10.00) 100.0- 125.00 (8.20) 6.6-
Insurance 154.00 1904.00 154.00 .00 .0 1904.00 .00 .0
Insurance-workers comp 100.98 1018.84 126.00 (25.10) 19.9- 1056.00 (42.16) 4.0-
Office 129.81 861.74 50.00 79.81 159.6 775.00 86.74 11.2
Printing 164.76 2847.26 200.00 (35.24) 17.6- 8100.00 (252.74) 8.2-
Survey/referral fees .00 125.00 .00 .00 .0 .00 125.00 .0
Professional fees 20.00 40.00 20.00 .00 .0 20.00 20.00 100.0
License & permits .80 614.56 .00 .00 .0 .00 614.56 .0
Rent 8007.20 86372.08 8007.00 .20 .0 35438.00 934.08 2.6
Repairs & maintenance 802.00 833.06 100.00 202.00 202.0 1150.00 (316.94) 27.6-
Property taxes 100.00 1200.00 100.00 .00 .0 1200.00 .00 .0
Shop supplies 152.49 1823.80 23.00 129.49 563.0 692.00 1131.00 163.4
Telephone 298.43 3760.64 881.00 (37.55) 11.8- 3878.00 (117.36) 3.0-
Utilities 684.28 7790.24 689.00 (4.72) .7- 7701.00 89.24 1.2
Installation .00 406.69 10.00 (10.00) 100.0- 209.00 197.69 94.6
Janitorial 29.60 524.73 25.00 4.60 18.4 265.00 259.78 98.0
Refreshment 19.39 540.41 25.00 (5.61) 21.4- 245.00 295.41 120.6
Cash over & short 96.61 810.47 .00 96.61 .0 .00 810.47 .0
---------- ----------- --------- ---------- ----------- ----------
Total expenses - Bannister 17805.71 187532.97 17996.00 (190.29) 1.1- 184908.00 2629.97 1.4
---------- ----------- --------- ---------- ----------- ----------
Net profit (loss) - Bannister 8848.98 40948.71 18873.00 (9529.02) 51.9- 21882.00 19111.71 87.5
========== =========== ========= ========== =========== ==========
55
Telephone Warehouse - Kansas City
Profit & loss statement
Independence Store
Period: 12/01/96 to 12/31/96
Reporting-prd Year-to-date Budget-reporting-period Budget-year-to-date
amount amount Amount Var-amt Var-% Amount Var-amt Var-%
Income - Independence
Pagers 3134.99 30924.47 3010.00 124.99 4.2 34957.00 (4032.53) 11.5-
Cellular 27117.54 153329.91 30890.00 (372.46) 12.2- 155933.00 (2603.09) 1.7
Cellular accessories 41419.50 31615.92 3094.00 1325.50 42.8 28057.00 3558.92 12.7
Alarms 209.91 4874.26 1025.00 (815.09) 79.5- 7477.00 (2602.74) 34.8-
Service parts 1294.85 5375.13 796.00 498.35 62.6 3977.00 1398.13 35.2
Non-commisionable labor 140.00 1355.00 113.00 27.00 23.9 1230.00 125.00 10.2
Programming labor - pager 4555.00 24357.00 3795.00 760.00 20.0 19906.00 4451.00 22.4
Gift certificates 73.00 1656.85 176.00 (101.00) 57.4- 800.00 856.85 107.1
Programming labor - cellular 1905.00 10147.05 2015.00 (110.00) 5.5- 9565.00 582.05 6.1
Labor 50.00 480.00 71.00 (21.00) 29.6- 557.00 (77.00) 13.8-
Labor alarms 170.00 4026.20 769.00 (559.00) 77.9- 5254.00 (1227.80) 23.4-
Volume bonus 10275.00 17925.00 7750.00 2525.00 32.6 11150.00 6775.00 60.8
Customer discount (26445.78) (147476.08) (31775.00) 5326.22 16.8 (152721.00) 5244.92 3.4
Carrier comm earned 39500.00 222575.00 47740.00 (8240.00) 17.3- 223675.00 (1100.00) .5-
Carrier comm deactivations 1675.00 (12150.80) (1276.00) 601.00 47.1 (15511.00) 3361.88 21.7
Carrier comm true-up (97.70) (3042.93) 164.00 (261.70) 159.6- (1985.00) (1057.93) 53.3-
Pager service 5967.80 32965.25 5198.00 769.30 14.3 26640.00 6825.25 23.7
Warranty .90 465.80 175.00 (175.00) 100.0- 626.00 (161.00) 25.7-
---------- ----------- --------- ---------- ----------- ----------
Total income - Independence 71592.11 379403.03 73730.00 (2137.89) 2.9- 359587.00 19816.03 5.5
Cost of sales - Independence
Pagers 8668.91 52777.70 8870.00 (209.99) 2.4- 51607.00 1170.70 2.3
Cellular 18885.08 101890.92 21016.00 (2179.97) 10.4- 105199.00 (3308.08) 3.1-
Cellular accessories 2368.81 15785.52 1880.00 1033.91 77.7 13901.00 1884.52 13.6
Other equipment 343.79 1743.94 77.00 466.75 606.2 524.80 1219.94 232.8
Alarms 174.87 4023.02 574.00 (399.93) 69.7- 5071.00 (1047.98) 20.7-
Service parts 179.08 2886.55 398.00 (213.12) 54.8- 2085.00 331.55 16.5
Credit card finance charge 146.55 1948.06 185.00 (33.45) 20.8- 1618.00 330.06 20.4
Use tax 727.21 4430.90 758.00 (30.79) 4.1- 5078.80 (647.10) 12.7-
Freight paid 180.80 1580.90 90.00 90.63 100.7 754.00 826.90 109.7
Outside labor 40.00 450.00 50.00 (10.00) 20.0- 270.00 180.00 66.7
Inventory adjustment (2275.29) 3654.54 200.00 (2475.29) 999.9- 2600.00 1054.54 40.6
---------- ----------- --------- ---------- ----------- ----------
Total cost of sales Ind. 29576.79 190622.05 33548.00 (8971.25) 11.8- 183627.00 1995.05 1.1
---------- ----------- --------- ---------- ----------- ----------
Gross profit - Independence 42015.36 188780.98 40182.00 1833.36 4.6 170960.00 17820.98 10.4
56
Period 12/01/96 to 12/31/96
Reporting-prd Year-to-date Budget-reporting-period Budget-year-to-date
amount amount Amount Var-amt Var-% Amount Var-amt Var-%
Expenses-Independence
Salaries-store managers 3565.41 38297.59 3200.00 365.41 11.4 36200.00 2097.59 5.8
Salaries-asst. store managers 2653.10 24912.68 5000.00 (2346.90) 46.9- 24490.00 422.68 1.7
Salaries-saleperson 4148.50 37136.31 4200.00 (51.50) 1.2- 36150.00 986.31 2.7
Salaries-service manager 1476.20 18693.00 2050.00 (573.80) 28.0 19478.00 (784.68) 4.0-
Salaries-installers 1669.34 3922.63 .00 1689.34 .0 1088.00 2834.63 260.5
Payroll taxes-social security 708.68 8954.55 757.00 (48.32) 6.4- 8664.00 290.55 3.4
Payroll taxes-fed unemployment 32.07 318.51 34.00 (1.93) 5.7- 290.00 28.51 9.8
Payroll taxes-st unemployment 107.48 1599.74 150.00 (42.57) 28.4- 1461.00 138.74 9.5
Alarm 37.89 454.68 38.00 (.11) .3- 456.00 (1.32) .3-
Auto 59.98 223.30 9.00 50.98 566.4- 110.00 113.30 103.0
Depreciation 1448.67 5355.98 355.00 1093.67 308.1- 4260.00 1095.98 25.7
Postage & freight .00 318.09 10.00 (10.00) 100.0- 125.00 193.09 154.5
Insurance 127.00 1607.00 127.00 .00 .0 1607.00 .00 .0
Insurance-workers comp. 130.00 1166.21 155.00 (24.20) 15.6- 1101.00 65.21 5.9
Office 104.27 795.57 50.00 54.27 108.5 775.00 20.57 2.7
Printing 164.76 2847.24 200.00 (35.24) 17.6- 2975.00 (127.76) 4.3-
Professional fees 20.00 40.00 20.00 .00 .0 20.00 20.00 100.0
License & permits .00 81.27 .00 .00 .0 .00 81.27 .0
Rent 2319.51 27834.12 2320.00 (.49) .0- 27839.00 (4.88) .0-
Repairs & maintenance 296.22 1440.37 100.00 196.22 196.2 2040.00 (599.63) 29.4-
Property taxes 100.00 1200.00 100.00 .00 .0 1200.00 .00 .0
Shop supplies .00 306.82 14.00 (14.00) 100.0- 359.00 (52.18) 14.5-
Telephone 377.68 4336.98 361.00 16.63 4.6 4485.00 (98.02) 2.2-
Utilities 367.11 5098.08 447.00 (79.89) 17.9- 5593.00 (494.92) 8.8-
Installation 1930.92 2712.75 4.00 1946.92 999.9 154.00 2558.75 999.9
Janitorial 26.80 741.00 25.00 11.60 46.4 265.00 476.00 176.6
Refreshment 137.84 831.86 25.00 112.34 449.4 375.60 436.86 121.8
Cash over & short 41.15 219.47 .00 41.15 .0- .00 219.47 .0
-------- --------- -------- ------- --------- ---------
Total expenses-Independence 22100.53 191446.12 19751.00 2349.58 11.9 181510.00 9936.12 5.5
-------- --------- -------- ------- --------- ---------
Net profit (loss)-Independence 19914.73 (2665.14) 20431.00 (516.22) 2.5- (10550.80) 7884.86 74.7
======== ========= ======== ======= ========= =========
57
Telephone Warehouse - Kansas City
Profit & loss statement
Overland Park Store
Period 12/01/96 to 12/31/96
Reporting-prd Year-to-date Budget-reporting-period Budget-year-to-date
amount amount Amount Var-amt Var-% Amount Var-amt Var-%
Income- Overland Park
Pagers 4610.50 36598.66 3192.00 1418.50 44.4 39203.00 (2609.34) 6.7-
Cellular 34500.56 220922.18 34876.00 (375.44) 1.1- 192917.00 28005.18 14.5
Cellular accessories 5208.54 89018.55 4959.00 249.54 5.0 36189.00 2829.55 7.8
Other equipment .00 899.95 .00 .00 .0 975.00 (75.05) 7.7-
Alarms 2113.53 11179.59 935.00 1178.53 126.0 9852.00 1327.59 13.5-
Service parts 690.44 3474.40 426.00 264.44 62.1 2674.60 800.00) 29.9
Non-commissionable labor 180.00 1154.44 99.00 81.00 81.8 1111.00 43.44 3.9
Programming labor-pager 5240.00 25075.00 4025.00 1215.00 30.2 22278.00 2797.00 12.6
Gift certificates .00 409.95 62.00 (62.00) 100.0- 248.00 161.95 65.3
Programming labor-cellular 1980.00 13404.00 2275.00 (345.00) 15.2- 11960.00 1444.00 12.1
Labor 229.95 854.95 80.00 149.95 187.4 684.00 170.95 25.0
Labor alarms 827.50 3855.20 701.00 126.50 18.0 7103.00 (1247.80 17.6-
ODE activators .00 (250.00) .00 .00 .0 .00 (250.00) .0-
Volume bonus 12075.00 23850.00 8750.00 3325.00 38.0 14275.00 9575.00 67.1
Customer discount (32809.77) (20514.38) (35875.00) 3065.23 8.5 (183235.00) (16905.38) 9.0-
Carrier comm earned 42925.00 293525.00 53900.00 (5975.00) 11.1- 277315.00 15710.00 5.7
Carrier comm deactivations (1325.00) (17775.00) (1595.00) 270.00 16.9 (23123.00) 5348.00 23.1
Carrier comm true-up (250.80) (3016.10) 165.00 (415.30) 251.7- 1053.00 (4069.10) 386.4-
Pager service 6821.70 33841.30 5513.00 1308.70 23.7 29307.00 4034.30 13.5
--------- ---------- --------- --------- ---------- ----------
Total Income-Overland Park 37967.65 483881.69 82488.00 5479.65 6.6- 436791.00 47090.69 10.3
Cost of sales-Overland Park
Pagers 10615.62 55522.34 9408.00 1207.68 12.8 57714.00 (2919.66) 3.8-
Cellular 24069.71 149867.25 23728.00 341.71 1.4 131485.00 18382.25 14.0
Cellular accessories 2852.61 20810.98 2132.00 720.61 33.8 17174.00 3636.98 21.2
Other equipment 68.76 1377.06 163.00 (99.24) 60.9- 1633.00 (255.94) 15.7-
Alarms 1061.37 6217.76 524.00 537.85 102.6 6270.00 (52.24) .8-
Service parts 264.64 3102.72 213.00 51.64 24.2 1372.00 1730.72 126.1
Credit card finance charges 122.85 1445.89 118.00 4.85 4.1 1145.00 300.89 26.3
Use tax 1342.71 6599.96 888.00 454.71 51.2 6173.00 426.96 6.9
Freight paid 152.32 1174.25 82.00 70.32 85.8 921.00 253.23 27.5
Outside labor .00 268.01 42.00 (42.00) 100.0 271.00 (2.99) 1.1-
Inventory adjustment 389.22 3427.48 200.00 189.22 94.6 2600.00 827.48 31.8
--------- ---------- --------- --------- ---------- ----------
Total cost of sales-Overland 40935.30 249813.70 37498.00 3737.30 9.2 226758.00 23055.70 10.2
--------- ---------- --------- --------- ---------- ----------
Gross profit - Overland Park 47032.35 234067.99 44990.00 2042.35 4.5 210033.00 24034.99 11.4
58
Period 12/01/96 to 12/31/96
Reporting-prd Year-to-date Budget-reporting-period Budget-year-to-date
amount amount Amount Var-amt Var-% Amount Var-amt Var-%
------------- ------------ ---------- ---------- ---- ----------- ---------- -----
Expenses-Overland Park
Salaries-store managers 4008.98 38932.78 3200.00 808.98 25.3 36200.00 2732.78 7.5
Salaries-asst. store managers 1338.95 13624.26 2500.00 (1161.05) 46.4- 19330.00 (5705.74) 29.5-
Salaries-salesperson 1659.83 27894.61 4200.00 (2540.17) 60.5- 27600.00 294.61 1.1
Salaries-service manager .00 248.00 .00 .00 .0 .00 248.00 .0
Salaries-installers 2018.90 10893.23 1550.00 468.90 30.3 10494.00 399.23 3.8
Payroll taxes-social security 651.68 6877.70 801.00 (169.32) 21.1- 7254.00 (376.30) 5.2-
Payroll taxes-fed unemployment 80.36 280.67 39.00 (8.64) 22.2- 305.00 (24.33) 8.0
Payroll taxes-st unemployment 41.66 299.77 95.00 (53.34) 56.1- 525.00 (225.23) 42.9-
Alarm .00 416.79 38.00 (38.00) 100.0- 456.00 (39.21) 8.6-
Auto .00 49.00 5.00 (5.00) 100.0- 65.00 (16.00) 24.6-
Depreciation 1786.41 4769.61 271.00 1515.41 599.2- 3252.00 1517.61 46.7
Postage & freight .00 114.87 10.00 (10.00) 100.0- 125.00 (10.13) 8.1-
Insurance 201.00 2421.00 201.00 .00 .0 2421.00 .00 .0
Insurance-workers comp. 87.25 848.71 155.00 (67.75) 43.7- 919.00 (70.29) 7.6-
Office 97.59 718.58 50.00 47.59 95.2 775.00 (56.42) 7.3-
Printing 164.76 2580.56 200.00 (35.24) 17.6- 2975.00 (394.44) 13.3-
Survey/referral fees .00 266.68 .00 .00 .0 50.00 216.68 488.4
Professional fees 20.00 40.00 20.00 .00 .0 20.00 20.00 100.0
Rent 8494.67 56619.04 8495.00 (.33) .0- 54332.00 2287.04 4.2
Repairs & maintenance .00 3654.85 100.00 (100.00) .0- 1150.00 2504.85 217.8
Property taxes 100.00 1200.00 100.00 .00 .0 1200.00 .00 .0
Shop supplies 328.64 1373.56 23.00 305.64 999.9 447.00 926.56 207.3
Telephone 240.06 2803.92 228.00 12.06 5.3 2819.00 (15.08) 5-
Utilities 528.61 5637.83 650.00 (121.19) 18.6- 6748.00 (1110.17) 16.5-
Installation 94.74 94.74 6.00 88.74 999.9 165.00 (70.26) 42.6-
Janitorial 87.70 1970.00 70.00 17.70 25.3 950.00 1020.72) 107.4
Refreshment 40.84 239.06 25.00 20.34 81.4 265.00 (25.94) 9.8-
Cash over & short 68.77 59.84 .00 68.77 .0 .00 59.84 .0
--------- ---------- --------- --------- ---------- ---------
Total expenses-Overland Park 22076.10 184930.38 29032.38 (955.90) 4.2- 180842.00 4088.38 2.3
--------- ---------- --------- --------- ---------- ---------
Net profit (loss)-Overland Park 24956.25 49137.61 21958.00 2998.25 13.7- 29191.00 19946.61 68.3
========= ========== ========= ========= ========== =========
59
Telephone Warehouse - Kansas City
Profit & loss statement
Gladstone store
Period: 12/01/96 to 12/31/96
Reporting-prd Year-to-date Budget-reporting-period Budget-year-to-date
amount amount Amount Var-amt Var-% Amount Var-amt Var-%
Income - Gladstone
Pagers 1604.68 12684.01 1824.00 (219.37) 12.0- 21765.00 (9080.99) 41.7-
Cellular 19486.08 139985.07 19929.00 (442.92) 2.2- 142812.00 (2826.93) 2.0-
Cellular accessories 2484.99 24893.08 2490.00 (5.01) .2- 24906.00 (12.92) .1-
Alarms 283.05 2614.25 890.00 (606.95) 68.2- 4860.00 (2245.75) 46.2-
Service parts 539.35 1350.50 247.00 292.35 118.4 835.00 515.50 61.7
Non - commissionable labor .00 490.00 40.00 (40.00) 100.0- 307.00 183.00 59.6
Programming labor - pager 2585.00 10790.00 2300.00 205.00 8.9 12214.00 (1424.00) 11.7-
Programming labor - cellular 1208.00 8775.00 1300.00 (100.00) 7.7- 8882.00 (107.00) 1.2-
Labor 165.00 580.00 46.00 119.00 258.7 514.00 66.00 12.8
Labor alarms 100.00 769.25 668.00 (568.00) 85.0- 2776.00 (2006.75) 72.3-
Volume bonus 6750.00 14650.00 5000.00 1750.00 35.0 9025.00 5625.00 62.3
Customer discount (18548.17) (134910.51) (20500.00) 1951.83 9.5 (139401.00) 4490.49 3.2
Carrier comm earned 27050.00 204750.00 30900.00 (3750.00) 12.2- 204539.00 211.00 .1
Carrier comm deactivations (325.00) (12825.00) (1595.00) 1270.00 79.6 (16256.00) 3431.00 21.1
Carrier comm tune-up .00 (3422.90) 271.00 (271.00) 100.0- 544.00 (3966.90) 729.2-
Pager service 8862.60 14666.85 3150.00 282.60 7.4 16314.00 (1647.15) 10.1-
------------- ------------ ------------ --------- --------- --------
Total Income - Gladstone 46677.58 285839.60 46860.00 (182.47) .4- 294636.00 (8796.40) 8.0-
Cost of Sales - Gladstone
Pagers 4906.51 24406.94 5376.00 (469.49) 8.7- 31594.00 (7187.06) 22.7-
Cellular 18959.78 94102.84 13559.00 400.73 3.0 97361.00 (3258.66) 3.3-
Cellular accessories 1690.41 14482.70 1071.00 619.41 57.8 11976.00 2506.70 20.9
Other equipment 68.50 167.07 17.00 21.50 126.5 124.00 43.07 34.7
Alarms 241.88 931.56 498.00 (256.67) 51.5- 3244.00 (2312.44) 71.3-
Service parts 284.86 552.50 123.00 111.86 90.9 510.00 42.50 8.3
Credit card finance charge 31.94 497.75 45.00 (13.66) 30.4- 592.00 (94.25) 15.9-
US tax 991.85 4814.37 500.00 491.41 98.4 4567.00 247.37 5.4
Freight paid 148.09 725.57 46.00 102.09 221.9 661.00 64.57 9.8
Outside labor .00 40.00 30.00 (30.00) 100.0- 116.00 (76.00) 65.5-
Inventory adjustment 1478.71 3693.60 200.00 1278.71 639.4 2600.00 1093.60 42.1
------------ ------------ ------------ --------- ----- --------- ---------
Total cost of sales-Gladstone 28721.38 144414.40 21465.00 2256.33 10.5 158843.00 (8980.60) 5.8-
------------ ------------ ------------ --------- ----- --------- ---------
Gross Profit - Gladstone 22956.20 141425.20 25395.00 (2438.80) 9.6- 141291.00 134.20 .1
60
Period: 12/01/96 to 12/31/96
Reporting-prd Year-to-date Budget-reporting-period Budget-year-to-date
amount amount Amount Var-amt Var-% Amount Var-amt Var-%
Expenses - Gladstone
Salaries - store manager 5128.98 46051.89 6400.00 (1271.07) 19.9- 48400.00 (2348.11) 4.9-
Salaries - asst. store manager .00 4648.58 2500.00 (2500.00)100.0- 13500.00 (8851.42) 65.6-
Salaries - salespersons 4118.02 36041.80 4200.00 (81.98) 2.0- 36600.00 (558.20) 1.5
Salaries - installers .00 490.07 .00 .00 .0 270.00 220.07 81.5
Payroll taxes-social security 911.84 6938.07 1045.00 (133.16) 12.7- 7188.00 (249.93) 3.5-
Payroll taxes-fed umemployment 43.70 367.49 50.00 (6.30) 12.6- 389.00 (21.51) 5.5-
Payroll taxes-st umemployment 158.48 1541.49 220.00 (61.52) 28.0- 1710.00 (168.51) 9.9-
Alarm 37.89 454.68 38.00 (.11) .3- 456.00 (1.32) .3-
Auto .00 .00 .00 .00 .0 15.00 (15.00) 100.0-
Depreciation 1092.27 1440.42 37.00 1060.27 999.9 384.00 1056.42 275.1
Dues & subscriptions .00 16.20 .00 .00 .0 .00 16.20 .0
Postage & freight .00 130.87 10.00 (10.00)100.0- 135.00 (4.13) 3.1-
Insurance 133.00 1673.00 133.00 .00 .0 1673.00 .00 .0
Insurance-workers comp. 89.38 827.05 142.00 (52.62) 37.1 960.00 (132.95) 13.8-
Office 199.12 827.90 50.00 149.12 298.2 775.00 104.90 13.5
Printing 188.18 2870.66 200.00 (11.82) 5.9- 2975.00 (104.34) 3.5-
Survey/referral fees .00 25.00 .00 .00 .0 .00 25.00 .0
Professional fees 20.00 40.00 20.00 .00 .0 20.00 20.00 100.0
License & permits .00 31.00 .00 .00 .0 .00 31.00 .0
Rent 2245.80 26949.60 2246.00 (.20) .0- 26952.00 (2.40) .0-
Repairs & maintenance .00 438.83 100.00 (100.00)100.0- 1050.00 (611.17) 58.2-
Property taxes 100.00 1200.00 100.00 .00 .0 1200.00 .00 .0
Shop supplies 95.77 141.29 .00 95.77 .0 158.00 (16.71) 10.6-
Telephone 288.80 3284.89 263.00 25.30 9.6 3116.00 168.89 5.4
Utilities 357.25 3832.37 314.00 43.29 13.8 3438.00 394.37 11.5
Installation .00 331.32 .00 .00 .0 6.00 325.32 999.9
Janitorial 151.28 766.55 35.00 116.28 332.2 435.00 331.55 76.2
Refreshment 164.14 1608.97 25.00 139.14 556.6 655.00 953.97 145.6
Cash over & short (4.52) (1.18) .00 (4.52) .0- .00 (1.18) .0-
---------- --------- -------- --------- --------- --------
Total expenses - Gladstone 15518.87 143020.86 18123.00 (2604.13) 14.4- 152460.00 (9439.14) 6.2-
---------- --------- -------- --------- --------- --------
Net profit (loss) - Gladstone 7487.80 (1595.66) 7272.00 165.33 2.3 (11169.00) 9573.34 85.7
========== ========= ======== ========= ========= ========
61
Telephone Warehouse, Inc.
Profit & loss statement
Administrative
Period: 12/01/96 to 12/31/96
Reporting-prd Year-to-date Budget-reporting-period Budget-year-to-date
amount amount Amount Var-amt Var-% Amount Var-amt Var-%
Income - Page dept.
Pager billing 19651.13 198729.26 21074.00 (1422.87) 6.8- 184063.00 14666.26 8.0
Pager service-extended 206.85 2013.45 432.00 (225.15) 52.1- 3014.00 (1880.55) 33.2-
Warranty 15.00 485.00 .00 15.00 .0 161.00 324.00 201.2
---------- ----------- --------- ---------- ----------- ----------
Total income - Pager dept. 19872.98 201227.71 21506.00 (1633.02) 7.6- 187238.00 139889.71 7.5
Cost of sales - Pager dept.
Pager service 6284.64 67432.80 7400.00 (1115.86) 15.1- 64150.00 3282.80 5.1
Pager retention discount 879.90 6169.80 800.00 79.90 10.0 4483.00 1686.80 37.6
Outside labor 37.00 779.12 213.00 (176.00) 82.6- 1719.00 (939.88) 54.7-
---------- ----------- --------- ---------- ----------- ----------
Total cost of sales-Pager dept 7201.54 74881.72 8413.00 (1211.46) 14.4- 70352.00 4029.72 5.7
---------- ----------- --------- ---------- ----------- ----------
Gross Profit - Pager dept. 12671.44 126845.99 18093.00 (421.56) 8.2- 116886.00 9959.99 8.5
Expenses - Pager department
Postage & freight .90 295.68 .00 .00 .0 10.00 285.68 999.9
Billing - pager dept. 412.89 4771.34 520.00 (107.91) 20.3- 5471.00 (699.66) 12.8-
Insurance 9.00 99.00 .00 9.00 .0 90.00 9.00 10.0
Printing .00 357.73 .00 .00 .0 350.00 7.73 2.2
Survey/referral fees .00 710.00 .00 .00 .0 184.00 526.00 285.9
Telephone .00 156.07 .00 .00 .0 150.00 6.07 4.0
---------- ----------- --------- ---------- ----------- ----------
Total expenses - Pager dept. 421.89 6889.82 520.00 (98.91) 19.0- 6255.00 134.82 2.2
---------- ----------- --------- ---------- ----------- ----------
Net profit (loss) - Pager dept. 12250.95 120456.17 12573.00 (322.65) 2.6- 110681.00 9825.17 8.9
========== =========== ========= ========== =========== ==========
62
Telephone Warehouse - Kansas City
Profit & loss statement
All Stores
Period: 12/01/96 to 12/31/96
Reporting prd Year-to-date Budget-reporting-period Budget year-to-date
amount amount Amount Var-amt Var-% Amount Var-amt Var-%
Net profit (loss) all stores 18509.73 (42974.16) 40923.00 (22863.27) 55.9 (121599.00) 78624.04 64.7
======== ========= ======== ========= ========== ========
63
Telephone Warehouse, San Antonio
Balance Sheet
As of 12/31/96
Assets
Current assets
Cash on hand $ 488,168.13
A/P-Trade 10,269.51
Allowance for doubtful accts. (4,288.48)
A/R-AT&T 156,049.04
A/R-RSF returned checks 8,678.75
A/R-Other 15,007.28
Intercompany A/R TW-KC 4,099.58
Intercompany A/R HCI 17,826.25
Inventory 114,169.28
Inventory valuation reserve (6,821.50)
Prepaid rent 12,818.98
-------------
Total current assets $ 755,961.82
Fixed assets
Furniture & Fixtures $ 1,492.78
Office equipment 2,782.69
Signs & displays 25,881.78
Test equipment 17,888.11
Computer & software equipment 1,904.97
Accumulated depreciation (18,955.40)
-------------
Total fixed assets $ 29,945.90
Other assets
Deposits $ 14,176.00
-------------
Total other assets $ 14,176.00
-------------
Total assets $800,033.72
===========
64
Telephone Warehouse, San Antonio
Balance Sheet
As of 12/31/96
Liabilities and stockholder's equity
Current liabilities
A/P-trade $ 183,169.63
A/P-accounts 77,106.85
Intercompany A/P 243,101.99
A/P-check request subagent 1,550.00
A/P-AT&T deposits (700.00)
A/P-salaries & wages 24,666.16
A/P-customer deposits 7,615.00
A/Security & Fed W/H payable 5,124.46
FUI/SUIA payable 428.17
Telecom assessment payable (639.45)
Accrued-property taxes 3,844.00
Accrued-professional 3,052.00
Accrued-interest 18,169.37
--------------
Total current Liabilities $ 568,562.68
Long term liabilities
Note payable-shareholder $ 475,000.00
Total long term liabilities $ 475,000.00
-------------
Total liabilities $1,043,362.68
Stockholder's equity
Common stock $ 1,000.00
Requires earnings prior years (942,828.22)
Net Income (loss) 96,988.26
--------------
Total equity $ (248,478.96)
-------------
Total liabilities and equity $ 800,088.72
=============
65
Telephone Warehouse, San Antonio
Classification Profit & loss statement
Period: 12/01/96 to 12/31/96
Reporting-prd Year-to-date Budget-reporting-period Budget-year-to-date
amount amount Amount Var-amt Var-% Amount Var-amt Var-%
INCOME
Total equipment sales 93995.27 944859.29 124705.00 (30709.73) 24.6- 969176.00 (24816.71) 2.6-
Total labor income 17988.75 161814.97 23115.00 (5126.25) 22.2- 151864.00 9950.97 6.6
Volume bonus income 16755.60 153210.00 22344.00 (5589.00) 25.0- 148930.00 4280.00 2.9
Features income 835.00 7200.00 494.00 341.00 69.0 6296.00 904.00 14.4
Loaner phone rental 185.00 1116.00 104.00 82.00 78.8 1056.00 60.00 5.7
Total service work .00 390.00 .00 .00 .0 .00 390.00 .0
Total freight income .00 11.00 .00 .00 .0 .00 11.00 .0
Misc. income all stores 430.19 11143.68 1072.00 (641.81) 59.9- 10000.00 1143.68 11.4
Total customer discounts (62765.23) (603262.60) (91200.00) 28434.77 31.2 (611278.00) 8015.40 1.3
Total carrier commissions 92425.00 872199.00 123120.00 (30695.00) 24.9- 846429.00 25770.00 3.0
Total carrier comm disc (16523.00) (112749.00) (16048.00) 5523.00 34.4 (116460.00) 3711.00 3.2
Carrier comm true-up (1130.90) 6544.82 631.00 (1761.00) 279.1- 6805.00 (260.18) 3.8-
Residual 20233.38 208666.35 17550.00 2683.88 15.3 215885.00 (7218.65) 3.8-
Advertising DH-DP 83664.54 174422.51 37234.00 (1569.16) 4.2- 167057.00 7365.51 4.4
Pager income all sections 59800.97 517613.96 56449.00 3351.97 5.9 311670.00 5943.96 1.2
Pager service extended 261.00 7446.90 1535.00 (1274.00) 83.0- 11247.00 (3800.10) 33.8-
Warranty 240.00 6370.00 675.00 (435.00) 64.4- 5636.00 734.00 13.0
---------- ----------- --------- ---------- ----------- ----------
Total income 264395.57 2857496.88 801780.00 (37384.33) 12.4- 2324318.00 32183.88 1.4
COST OF SALES
Total equipment use of sales 97927.68 727885.81 94150.00 3777.68 4.0 715881.00 12004.81 1.7
Use tax 6153.88 24988.48 8019.00 181.88 4.4 25145.00 (161.52) .6-
Freight paid 694.41 4864.69 889.00 255.41 75.8 8086.00 1828.69 48.8
Warranty expenses 950.75 6297.65 1252.00 (801.25) 24.1- 5852.00 445.66 7.6
Pager billing 12626.88 187449.82 11250.00 1876.79 12.2 189450.00 (2000.98) 1.4-
Pager service Telephone assess 587.80 4282.55 344.00 213.80 62.0 8566.00 716.55 20.1
Pager retention discount 2289.95 12871.68 4800.00 (3510.05) 78.1- 22012.00 (9640.87) 48.8-
Pager retention cost .00 110.00 .00 .00 .0 175.00 (65.00) 87.1-
Inventory adjustment 1405.66 18272.10 600.00 805.66 134.8 14200.00 (927.90) 6.5-
---------- ----------- --------- ---------- ----------- ----------
Total cost of sales 128502.87 980516.44 115754.00 2748.87 2.4 928817.00 1699.99 .2
---------- ----------- --------- ---------- ----------- ----------
Gross profit 147892.60 1425980.44 185026.00 (40133.20) 21.6- 1895496.00 30484.44 2.2
OPERATING EXPENSES
Expenses-Administrative 84988.96 570671.42 86447.00 (1458.67) 1.7- 574217.00 (3545.58) .6-
Expenses-Walzen 25038.98 272298.40 26066.00 (1027.02) 8.9- 274558.00 (2254.60) .8-
Expenses-Broadway 15410.76 181338.55 21764.00 (6353.24) 29.2- 192306.00 (10967.45) 5.7-
Expenses-Callaghan 26108.40 273154.17 27043.00 (934.60) 3.5- 270389.00 4765.17 1.8
Expenses-Pager dept. 2109.55 2968.64 2346.00 (236.45) 10.1- 26413.00 3265.64 12.4
---------- ----------- --------- ---------- ----------- ----------
Total expenses 158656.02 1329141.18 163666.00 (10009.98) 6.1- 1337878.00 (8736.82) .7-
Net profit (loss) (7763.22) 96839.26 22360.00 (30128.22) 134.7- 57618.00 39221.26 68.1
========== =========== ========= ========== =========== ==========
66
Telephone Warehouse - San Antonio
Consolidated Profit & loss statement
Administrative
Period: 12/01/96 to 12/31/96
Reporting-prd Year-to-date Budget-reporting-period
amount amount Amount Var-amt
Pagers 6827.81 84195.68 14629.00 (7801.69)
Cellular-digital 2899.70 7599.05 .00 2399.70
Cellular-analog 68877.96 607905.43 79337.00 (15959.04)
Cellular accessories 14424.72 165836.11 21519.00 (7094.28)
Alarms 2743.20 44052.82 5919.00 (3173.89)
Service parts 4085.88 28066.06 2724.00 1361.38
Non-commisionable labor 185.00 3897.79 506.00 (371.00)
Programming labor-pager 8277.00 67447.58 11438.00 (3161.00)
Gift certificates .00 606.85 71.00 (71.00)
Airtime certificates .00 200.00 .00 .00
Programming labor-cellular 5255.00 47749.43 6840.00 (1585.00)
Labor-misc 2815.79 21589.60 1227.00 1088.79
Labor alarms 2141.00 25028.41 8610.00 (1469.00)
Volume loans 16755.80 153210.00 22344.00 (5589.00)
Features 893.00 7200.00 494.00 341.00
Loaner phone rental 186.00 1116.00 104.00 82.00
Service work .00 390.00 .00 .00
Freight-in .00 11.00 .00 .00
Miscellaneous (845.76) 404.44 72.00 (417.77)
Disconnects recovery 773.95 10739.24 1000.00 (224.00)
Customer discount-analog (62087.48) (601804.35) (91200.00) 29112.51
Carrier comm earned-analog 91975.00 870774.00 123120.00 (31145.00)
Carrier comm debts-analog (10325.00) (112674.00) (16048.00) 5523.00
Carrier comm true-up (1180.00) 6544.82 681.00 (1761.00)
Customer discount-digital (677.77) (1977.75) .00 (677.77)
Carrier comm earned-digital 450.00 1425.00 .00 450.00
Carrier comm deacts-digital .00 (75.00) .00 .00
Residual 20288.88 208666.85 17530.00 2683.88
Advertising DU-DP 35664.84 174422.51 37234.00 (1569.19)
Pager service 39800.99 517613.96 56449.00 3351.97
Pager service extended 261.00 7446.90 1535.00 (1274.09)
Warranty 240.00 6970.00 675.00 (435.00)
---------- ----------- --------- ----------
Total income 264395.87 2856496.88 801780.00 (37384.38)
67
Telephone Warehouse, San Antonio
Consolidated - profit & loss statement
Period: 12/01/96 to 12/31/96
Reporting-prd Year-to-date Budget-reporting-period Budget-year-to-date
amount amount Amount Var-amt Var-% Amount Var-amt Var-%
Pagers 40217.98 180159.43 28716.00 11501.98 40.1 166653.00 13506.43 8.1
Cellular-digital 1812.00 5738.00 .00 1812.00 .0 .00 5738.00 .0
Cellular-analog 41880.24 400877.31 51851.00 (10470.76) 20.2- 408075.00 (7197.69) 1.8-
Cellular accessories 9260.29 81791.89 7531.00 1729.29 23.0 80598.00 1193.89 1.5
Other equipment 982.80 15890.40 1248.00 (265.20) 21.3- 12642.00 2748.40 21.7
Alarms 1963.78 28872.19 2960.00 (996.27) 33.7- 28202.00 (4329.81) 15.4-
Service parts 2012.67 14247.27 1361.00 651.67 47.9 13458.00 794.27 5.9
Credit card finance charge 297.92 4808.82 409.00 (111.08) 27.2- 4983.00 (174.18) 3.5-
Airline certificates .00 500.00 74.00 (74.00) 100.0- 775.00 (275.00) 35.5-
Use tax 3150.38 24983.48 8019.00 131.38 4.4 25145.00 (161.52) .6-
Freight paid 594.41 4364.69 339.00 255.41 75.3 3036.00 1328.69 43.8
Pager service 12626.79 137449.02 11250.00 1376.79 12.2 139450.00 (2000.93) 1.4-
Pager service Telecom assess 557.20 4282.55 344.00 213.80 62.0 3566.00 716.55 20.1
Pager retention discount 1289.95 12371.63 4800.00 (3510.05) 73.1- 22012.00 (9640.37) 43.8-
Pager retention cost .00 110.00 .00 .00 .0 175.00 (65.00) 37.1-
Outside labor 950.75 6297.66 1252.00 (301.25) 24.1- 5852.00 445.66 7.6
Inventory adjustment 1405.66 13272.10 600.00 805.66 134.3 14200.00 (927.90) 6.5-
---------- ----------- --------- ---------- ----------- ----------
Total cost of sales 118502.97 980516.44 115754.00 2748.87 2.4 928817.00 16699.44 .2
---------- ----------- --------- ---------- ----------- ----------
Gross profit 1145592.80 1425980.44 186026.00 (40133.20) 21.6- 1395496.00 30484.44 2.2
68
Telephone Warehouse, San Antonio
Consolidated
Profit & loss statement
Period: 12/01/96 to 12/31/96
Reporting-prd Year-to-date Budget-reporting-period Budget-year-to-date
amount amount Amount Var-amt Var-% Amount Var-amt Var-%
Operating expenses
Salaries-operations admin. 6275.00 52453.88 6820.00 (545.00) 8.0- 53690.00 (1236.67) 2.3-
Salaries-store manager 9835.00 111324.70 12800.00 (2965.00) 23.2- 111800.00 (475.30) .4-
Salaries-dept. store manager 7258.98 78418.69 6870.00 388.93 5.7 75920.00 2498.69 3.3
Salaries-sales persons 16398.69 157395.78 16800.00 (461.31) 2.7- 157200.00 195.78 .1
Salaries-clerical 1033.45 1033.45 4650.00 (3616.55) 77.8- 4650.00 (3616.55) 77.8-
Salaries-service manager 4638.81 56651.95 5125.00 (491.19) 9.6- 59685.00 (3033.05) 5.1-
Salaries-installers 3014.05 36720.16 3875.00 (830.95) 21.4- 40171.00 (3450.84) 8.6-
Payroll taxes-social security 3442.68 37666.68 3568.00 (125.34) 3.5- 38170.00 (503.82) 1.3-
Payroll taxes-fed unemployment 210.27 1593.26 193.00 17.27 8.9 1655.00 (61.74) 3.7-
Payroll taxes-st unemployment (106.48) 689.88 113.00 (219.48) 194.2- 925.00 (235.92) 25.5-
Training .00 2118.15 232.00 (232.00) 100.0- 1078.00 1040.15 96.5
Advertising 69266.73 357884.67 69572.00 (305.27) .4- 358953.00 (1573.88) .4-
Alarm 118.67 1364.04 114.00 (.33) .3- 1368.00 (3.96) .3-
Auto 226.24 2838.52 242.00 (15.76) 6.5- 3063.00 (224.48) 7.3-
Bad debts 380.00 3800.00 300.00 .00 .0 3600.00 (300.00) 8.3-
Bank changes 10.00 285.50 3.00 7.00 233.3 58.00 227.50 392.2
Depreciation 929.53 6098.88 651.00 278.58 42.8 7812.00 276.88 3.5
Dues and subscriptions 180.00 1865.41 130.00 .00 .0 1088.00 277.41 25.5
Awards .00 3380.99 230.00 (250.00) 100.0- 4526.00 (1145.01) 25.8-
Travel 116.00 4012.75 100.00 16.00 16.0 2477.00 1535.75 62.0
Freight/postage billing 1029.37 13965.77 1201.00 (171.68) 14.3- 12538.00 1427.77 11.4
Insurance 625.00 7554.50 625.00 .00 .0 7527.00 27.50 .4
Insurance-workers comp 1085.75 11575.99 1264.00 (178.25) 14.1- 11768.00 (187.01) 1.6-
Personnel 786.49 6845.45 364.00 372.49 102.3 7967.00 (1121.55) 14.1-
Office 214.76 3611.52 400.00 (185.24) 46.3- 5500.00 111.52 2.0
Collection fees .00 394.89 56.00 (56.00) 100.0- 911.00 (516.11) 56.7-
Collection-ASF checks .00 (15.00) (2.00) 2.00 100.0 34.00 (49.00) 144.1-
Printing 891.81 11978.71 975.00 (283.69) 29.1- 18675.00 (1696.29) 12.4-
Survey/referral fees 123.00 5770.00 615.00 (490.00) 79.7- 4506.00 1264.00 28.1
Professional fees 64.79 8561.85 66.00 (1.05) 1.6- 8521.00 40.35 1.1
Rent 18178.22 156086.79 18139.00 34.21 .3 154908.00 1183.79 .8
Repairs and maintenance 653.62 17568.04 750.00 (91.38) 12.2- 17700.00 (131.96) .7-
Property taxes 487.90 5844.00 487.00 .00 .0 5844.00 .00 .0
Shop supplies 297.97 3411.52 282.00 15.37 5.5 2537.00 874.52 34.5
Telephone 3439.42 86149.01 2906.00 533.42 18.4 34855.00 1794.01 5.2
Utilities 1598.60 19871.54 1672.00 (163.38) 9.8- 20965.00 (1093.46) 5.2-
Computer 109.70 2478.54 247.00 (138.30) 56.0- 4681.00 (2202.46) 47.1-
Interest .00 26237.90 .00 .00 .0 26241.00 (3.10) .0-
Installation .00 1850.68 71.00 (71.00) 100.0- 876.00 974.63 111.3
Janitorial 317.99 4853.80 320.00 (2.01) .6- 3995.00 358.80 9.0
Refreshment 288.85 2160.83 255.00 (21.35) 8.4- 3165.00 (1004.17) 31.7-
Cash over and short 236.21 1019.91 .00 236.21 .0 .00 1019.91 .0
Common operating expenses 5565.00 66780.00 5565.00 .00 .0 66780.00 .00 .0
----------- ---------- --------- ---------- ----- ----------- ----------
Total operating expenses 158656.02 1329141.18 163666.00 (10009.98) 6.1- 1337878.80 (8736.82) .7-
----------- ---------- --------- ---------- ----------- ----------
Consolidated profit/(loss) (7763.22) 96839.26 22860.00 (30123.22) 134.7- 57618.00 39221.26 68.1
=========== ========== ========= ========== =========== ==========
69
Telephone Warehouse
Profit & loss statement
Administrative
Period: 12/01/96 to 12/31/96
Reporting-prd Year-to-date Budget-reporting-period Budget-year-to-date
amount amount Amount Var-ant Var-% Amount Var-ant Var-%
Income - Administrative
Miscellaneous (345.76) 412.44 72.00 (417.76) 580.2- 384.00 78.44 23.5
Disconnects recovery 775.95 10739.24 1000.00 (224.05) 22.4- 9666.00 1073.24 11.1
Residual 20285.88 208666.85 17550.00 2683.88 15.8 215885.00 (7218.65) 8.8-
Advertising CO-OP AT&T 29964.84 151262.52 37234.00 (7269.16) 19.5- 156882.00 (5069.48) 8.2-
Advertising CO-OP Vendors 5700.00 28159.99 .00 5700.00) 0 10725.00 12434.99 115.9
-------- --------- -------- -------- --------- --------
Total Income - Administrative 56828.91 894240.54 55856.00 472.91 .8 392942.00 1298.54 3-
70
Period 12/01/96 to 12/31/96
Reporting-prd Year-to-date Budget-reporting-period Budget-year-to-date
amount amount Amount Var-ant Var-% Amount Var-ant Var-%
Expenses-Administrative
Inventory adjustment .00 7000.00 .00 .00 .0 7000.00 .00 .0
Salaries-operations admin. 6275.00 52458.33 6820.00 (545.00) 8.0- 58690.00 (1236.67) 2.8-
Payroll taxes-social security 484.98 5777.30 527.00 (42.07) 8.0- 5618.00 159.30 2.8
Payroll taxes-fed unemployment 26.90 124.91 29.00 (2.02) 7.0- 117.00 7.91 6.8
Payroll taxes-st unemployment (196.78) (135.05) 31.00 (227.79) 734.8- 91.00 (226.05) 248.4-
Training .00 2118.15 232.00 (232.00) 100.0- 1078.00 1040.15 96.5-
Advertising-cellular 57905.46 804817.75 59086.00 (1180.52) 2.0- 309847.00 (5029.25) 1.6-
Advertising-vehicle security 118.89 2440.24 113.00 .00 .0 1988.00 452.24 22.7
Advertising-pagers 11099.90 47155.07 10088.00 1011.30 10.0 44276.00 2879.07 6.5
Advertising-signs & displays 148.95 2971.61 285.00 (136.05) 47.7- 2847.00 124.61 4.4
Auto 199.75 2420.93 205.00 (5.25) 2.6- 2525.00 (104.07) 4.1-
Bad debt 280.00 3800.00 300.00 .00 .0 3625.00 (300.00) 8.8-
Bank charges 10.00 285.50 3.00 7.00 233.3 58.00 227.50 392.2
Dues & subscriptions 180.00 1865.41 180.00 .00 .0 1088.00 277.41 25.5
Awards .00 3880.59 250.00 (250.00) 100.0- 4526.00 (1145.01) 25.3-
Travel 116.00 4012.75 100.00 16.00 16.0 2477.00 1535.75 62.0
Postage & freight 586.00 4445.84 437.00 99.70 22.8 3765.00 680.34 18.1
Insurance 11.00 148.50 11.00 .00 .0 121.00 27.50 22.7
Insurance-workers comp. 14.72 128.07 10.00 4.72 47.2 113.00 10.07 8.9
Personnel 786.49 6788.16 364.00 372.49 102.3 7962.00 (1173.84) 14.7-
Office 51.96 2733.83 100.00 (48.02) 48.0- 1700.00 1033.33 60.8
Collection fees .00 394.89 56.00 (56.00) 100.0- 911.00 (516.11) 56.7-
Collections - NSF checks .00 (15.00) (2.00) 2.00 100.0 84.00 (49.00) 144.1-
Printing 68.87 1404.72 75.00 8.97 12.0 1525.00 (120.22) 7.9-
Surveys/professional fees 125.00 3490.00 387.00 (262.00) 67.7- 6107.00 383.00 12.3
Professional fees .00 3150.00 .00 .03 .0 3081.00 69.00 2.2
Rent 854.28 3554.08 320.00 34.23 10.7 2240.00 1314.03 58.7
Repairs & maintenance 117.32 9854.28 75.00 40.52 54.0 10075.00 (120.72) 1.2-
Telephone 864.82 4080.80 290.00 104.02 85.9 4265.00 (234.70) 5.5-
Utilities 36.87 1076.51 98.00 (41.03) 41.9- 1420.00 (346.09) 24.4-
Computer 108.70 2878.88 247.00 (138.30) 56.0- 3981.00 (1602.67) 40.3-
Interest .00 26287.90 .00 .03) .0 26241.00 (3.10) .0-
Janitorial 48.50 367.98 65.00 (16.50) 25.4- 1045.00 (477.07) 45.7-
Refreshment 172.89 942.78 150.00 22.93 15.3 2025.60 (1082.22) 58.4-
Common operating salaries 5565.30 66780.00 5565.00 .00 .0 66780.00 .00 .0
-------- --------- -------- ------- --------- ---------
Total expenses-Administrative 84988.82 577671.42 86447.00 (1458.67) 1.7- 581217.00 (3545.58) .6-
Net profit (loss) (28659.42) (183430.83) (30591.00) 1931.58 6.3 (188275.00) 4844.12 2.6
========= ========== ========= ======= ========= =========
71
Telephone Warehouse - San Antonio
Profit & loss statement - Walzen
Period: 12/01/96 to 12/31/96
Reporting-prd Year-to-date Budget-reporting-period Budget-year-to-date
amount amount Amount Var-ant Var-% Amount Var-ant Var-%
Income- Walzen
Pagers 2344.93 35401.69 5832.00 (3487.07) 59.8- 38419.00 (3017.11) 7.9-
Cellular - digital 1199.85 3599.55 .00 1199.85 .0 .00 3599.55 .0
Cellular - analog 29143.65 231179.26 28623.00 520.65 1.8 225535.00 5644.26 2.5
Cellular accessories 6938.20 73792.04 8567.00 (1628.80) 19.0- 70165.00 3627.04 5.2
Alarms 1648.63 23281.50 4194.00 (2545.37) 60.7- 28671.00 (5389,50) 18.8-
Service parts 1831.40 12368.81 1175.00 656.40 55.9 12765.00 (401.19) 3.1
Non-commissionable labor 125.00 2715.95 145.00 (20.00) 13.8- 1770.00 945.95 53.4
Programming labor-pager 3427.00 28887.00 4560.00 (1133.00) 24.8- 27720.00 1167.00 4.2
Gift certificates .00 274.40 34.00 (34.00) 100.0- 161.00 113.40 70.4
Programming labor-cellular 2265.00 18114.43 2475.00 (110.00) 4.4- 17202.00 912.43 5.3
Labor 771.95 8092.66 487.00 284.95) 58.5 4125.00 3967.66 96.2
Labor alarms 1043.50 15406.45 2558.00 (1514.50) 59.2- 15428.00 (21.55) .1-
Volume bonus 7657.29 59743.32 8085.00 (427.72) 5.3 53962.00 5781.52 10.7
Features 415.00 2411.09 158.00 257.00 162.7 2126.00 285.09 13.4
Loaner phone rental 72.00 261.09 27.00 45.00 166.7 447.00 (186.00) 41.6-
Customer discount - analog (26185.00) (281526.73) (88000.00) 4865.00 14.7 (222502.00) (9024.73) 4.1-
Carrier comm earned - analog 41800.00 335079.00 44550.00 (3250.00) 7.3- 308011.00 27068.00 8.8
Carrier comm deactivations (3200.00) (40997.00) (2448.00) (752.00) 30.7- (39806.00) (1191.00) 3.0-
Carrier comm true-up 513.00 1629.20 4.00 509.00 999.9 476.00 1133.20 228.5
Customer discount - digital (380.00) (880.00) .00 (380.00) .0- .00 (880.00) .0-
Carrier comm earned - digital 300.00 750.00 .00 300.00 .0 .00 750.00 .0
Carrier comm deacts - digital .00 (75.00) .00 .00 .0 .00 (75.00) .0-
Airline certificates .00 200.00 .00 .00 .0 67.00 133.00 198.5
Pager service - xxx 10670.55 62890.75 9120.00 1559.55 17.1 54423.00 8467.75 15.6
Warranty .00 .00 .00 .00 .0 790.00 (790.00) 100.0-
--------- ---------- --------- --------- ---------- ----------
Total Income-Walzen 30560.94 642594.77 87146.00 (5085.06) 6.0- 599975.00 42619.77 7.1
Cost of sales-Walzen
Pagers 18075.21 76002.01 11448.00 2427.21 21.2 69597.01 6405.01 9.2
Cellular - digital 906.00 2718.00 .00 906.00 .0 .00 2718.00 .0
Cellular - analog 19422.00 152406.61 18762.00 661.90 8.5 149098.00 3313.61 2.2
Cellular accessories 4841.95 35608.12 2998.00 1843.95 61.5 38932.00 1676.12 4.9
Alarms 886.29 14323.89 2097.00 (1210.71) 57.7- 15432.00 (1108.12) 7.2-
Other equipment 488.00 6718.16 587.00 (48.70) 9.1- 5861.00 1857.16 25.3-
Service parts 1000.32 6272.73 587.00 413.53 70.4 6248.00 24.73 .4
Credit card finance charges 118.65 1978.23 171.00 (52.37) 30.6- 2087.00 (118.77) 5.7-
Use tax 1409.02 9071.76 1116.00 293.80 26.8 9429.00 (357.24) 3.8-
Freight paid 313.90 1314.37 85.00 228.90 269.8 1019.00 295.87 29.0
Outside labor 165.00 990.00 245.00 (80.00) 32.7- 1318.00 (328.00) 24.9-
Airline certificates .00 212.50 30.00 (30.00) 100.0- 297.00 (84.50) 28.5-
Inventory adjustment 45.02 2468.27 200.00 (154.98) 77.5- 2400.00 63.27 2.6
--------- ---------- --------- --------- ---------- ----------
Total cost of sales-Walzen 48474.52 810079.64 38276.00 5198.52 13.6 296223.00 18856.64 4.7
--------- ---------- --------- --------- ---------- ----------
Gross profit - Walzen 86586.42 332515.18 46870.00 (10283.58) 21.9- 303752.00 28763.13 9.5
72
Period 12/01/96 to 12/01/96
Reporting-prd Year-to-date Budget-reporting-period Budget-year-to-date
amount amount Amount Var-amt Var-% Amount Var-amt Var-%
Expenses - Walzen
Salaries- store manager 3371.00 38285.02 3200.00 171.00 5.3 36200.00 2085.02 5.8
Salaries-asst. store manager 1928.30 25739.27 2500.00 (571.40) 22.9- 26700.00 (960.73) 3.6-
Salaries-salespersons 6938.75 64487.99 6300.00 638.75 10.1 62100.00 2387.99 3.8
Salaries- clerical 143.75 145.75 1550.00 (1404.25) 90.6- 1550.00 (1404.25) 90.6-
Salaries- service manager 1977.68 22291.21 2050.00 (72.32) 3.5- 24600.00 (2308.79) 9.4-
Salaries- installers 1357.10 14523.12 1550.00 (192.90) 12.4- 18600.00 (4076.88) 21.9-
Payrol taxes-social security 1111.76 11365.56 1114.00 (2.24) .2- 11437.00 (71.44) .6-
Payroll taxes-fed unemployment 68.54 563.18 64.00 (.46) .7- 558.00 5.18 .9
Payroll taxes-st unemployment 81.69 314.65 32.00 (.31) 1.0- 301.00 13.65 4.5
Alarm 87.89 454.68 38.00 (.11) .3- 456.00 (1.32) .3-
Auto 26.49 143.89 6.00 20.49 341.5 29.00 114.89 396.2
Depreciation 411.72 1874.06 133.00 278.72 209.6 1596.00 278.06 17.4
Dues & subscriptions .00 (15.01) .00 .00 .00 .0 (15.01) .0-
Postage & freight .00 38.47 5.00 (5.00) 100.0- 60.00 (21.53) 35.9-
Insurance 206.00 2488.00 206.00 .00 .0 2433.00 .00 .0
Insurance-workers cont. 405.14 4297.78 446.00 (40.36) 9.2- 4354.00 (56.22) 1.3-
Personnel .00 57.29 .00 .00 .0 5.00 52.29 999.9
Office 60.48 1005.61 100.00 (39.52) 39.5- 1316.00 (309.39) 23.5-
Printing 211.99 8951.46 300.00 (88.01) 29.3- 4050.00 (98.54) 2.4-
Professional fees 21.55 151.55 22.0 (.35) 1.6- 154.00 (2.45) 1.6-
Rent 4736.00 56832.00 4736.00 .00 .0 56962.00 .00 .2-
Repairs & maintenance 410.77 3482.43 225.00 185.77 82.6 2616.00 866.43 33.1
Property tax 163.00 2016.00 168.00 .00 .0 2016.00 .00 .0
Shop supplies 136.12 1853.85 122.00 64.12 52.6 1074.00 281.85 26.2
Telephone 328.28 6141.30 504.00 24.23 4.3 6115.00 26.30 .4
Utilities 318.54 6569.58 544.00 (25.66) 4.7- 6888.00 (318.42) 4.6-
Commuter .00 .00 .00 .00 .0 500.00 (500.00) 100.0-
Installation 00 1120.68 31.00 (31.00) 100.0- 354.00 766.68 216.6
Janitorial 64.66 1502.66 85.00 (20.34) 28.9- 1045.00 457.66 43.8
Refreshement 10.65 712.77 83.00 (24.03) 68.7- 485.00 277.77 63.9
Cash over & short 108.66 407.10 .00 108.66 .0 .00 407.10 .0
-------- --------- -------- -------- --------- --------
Total express-Walzen 15022.88 272298.40 26066.00 (1027.02) 3.9- 274553.00 (2254.60) 8-
-------- --------- -------- -------- --------- --------
Net profit (loss) - Walzen 11347.44 60216.73 20804.00 (9256.56) 44.5- 29199.00 31017.73 106.2
======== ========= ======== ======== ========= ========
73
Telephone Warehouse - San Antonio
Profit & loss statement - Broadway store
Period: 12/01/96 to 12/31/96
Reporting-prd Year-to-date Budget-reporting-period Budget-year-to-date
amount amount Amount Var-amt Var-% Amount Var-amt Var-%
Income - Broadway
Pagers 1060.43 13428.03 8086.00 (2025.5) 65.6- 18211.00 (4782.97) 26.3-
Cellular - digital 899.95 1199.85 .00 899.95 .0 .00 1199.85 .0
Cellular - analog 12162.05 149774.18 21857.00 (9694.95) 44.4- 164392.00 (14617.82) 8.9-
Cellular accessories 2075.54 37587.63 5664.00 (3588.46) 63.4- 45070.00 (7582.87) 16.7-
Alarms 883.86 6523.88 751.00 (865.64) 48.7- 10429.00 (3905.12) 87.4-
Service parts 678.69 6712.84 640.00 38.69 6.0 6678.00 34.84 .5
For-commissionable labor 10.00 1803.00 241.00 (231.00) 95.9- 2460.00 (657.00) 26.7-
Programming labor - pager 1195.00 11013.53 2413.00 (1218.00) 50.5- 18182.00 (2168.47) 16.5-
Programming labor - cellular 983.00 11460.00 1890.00 (905.00) 47.9- 12415.00 (955.00) 7.7-
Labor 428.75 6185.11 432.00 56.75 13.1 8063.00 3122.11 101.9
Labor alrams 170.00 3488.00 458.00 (288.00) 62.9- 5510.00 (2022.00) 86.7-
Volume bonus 8117.98 36274.81 6174.00 (3056.07) 49.5- 39670.00 (3395.19) 8.6-
Features 60.00 1348.10 114.00 (54.00) 47.4- 16729.00 (380.90) 22.0-
Loaner phone rental .00 403.50 38.00 (38.00) 100.0- 217.00 186.50 85.9
Miscellaneous .00 (8.00) .00 .00 .0 .00 (8.00) .0-
Customer discount - analog (15999.08) (146813.89) (23200.00) 13200.92 52.4 (162743.00) 15929.61 9.8
Carrier comm earned - analog 17150.00 209558.00 34020.00 (16870.00) 47.6- 224185.00 (14582.00) 6.5-
Carrier comm deactivations (1675.00) (26680.00) (3308.00) 2133.00 56.0 (31268.00) 4588.00 14.7
Carrier comm true-up (569.30) 4095.93 434.00 (993.00) 228.8- 3941.00 144.93 3.7
Customer discount - digital (160.00) (850.00) .00 (150.00) .0- .00 (850.00) .0-
Carrier comm earned - digital 150.00 300.00 .00 150.00 .0 .00 380.00 .0-
Pager service - 1st 3 mths 4584.00 26027.70 4026.00 (291.80) 6.0- 25465.00 562.70 2.2
Service parts .00 390.00 .00 .00 .0 .00 390.00 .0
Warranty 240.00 6870.00 700.00 (460.00) 65.7- 4357.00 1813.00 39.8
--------- --------- ---------- ----------- ---------- -----------
Total Income - Broadway 30479.54 860027.70 54780.00 (24250.16) 44.8- 387113.00 (27085.30) 7.0-
Cost of sales - Broadway
Pagers 7439.41 33314.78 6038.00 1331.41 22.3 33419.00 (104.22) .3-
Cellular - digital 802.00 906.00 .00 302.00 .0 .00 906.00 .0
Cellular - analog 7733.71 99609.56 14327.00 (6593.29) 46.0- 108506.00 (8896.44) 8.2-
Cellular accessories 1834.30 19225.95 1982.00 (647.20) 32.7- 20602.00 (1376.05) 6.7-
Alarms 217.52 3494.89 376.00 (158.48) 42.1- 3816.00 (1821.61) 34.3-
Other equipment 57.63 3127.79 286.00 (228.37) 79.9- 3106.00 21.79 .7
Service paarts 838.14 3267.85 320.00 33.24 10.4 3272.00 (4.15) .1-
Credit corp Finance charge 44.18 1070.80 98.00 (53.77) 54.9- 1348.00 (272.20) 20.3-
Income tax 653.37 6431.21 826.00 (172.13) 20.8- 6652.00 (220.79) 3.3-
Freight paid 103.25 2173.64 200.00 (96.75) 48.4- 1267.00 906.64 71.6
Outside labor 113.00 848.00 42.00 71.00 169.0 486.00 (138.00) 28.4-
Airline certificates .00 162.50 23.00 (23.00) 100.0- 293.00 (130.50) 44.5-
Inventory adjustment 366.71 497.34 200.00 166.71 83.4 2400.00 (1902.66) 79.3-
--------- --------- ---------- ----------- ---------- -----------
Total cost of sales - Broadway 18719.37 173629.81 24738.00 (6018.63) 24.3- 186662.00 (13032.19) 7.0-
--------- --------- ---------- ----------- ---------- -----------
Gross profit - Broadway 11760.47 186897.89 29992.00 (18231.53) 60.8- 200451.00 (14053.11) 7.0-
74
Period: 12/01/96 to 12/31/96
Reporting-prd Year-to-date Budget-reporting-perid Budget-year-to-date
amount amount Amount Var-amt Var-% Amount Var-amt Var-%
Expenses - Broadway
Salaries- store manager 3139.50 34008.55 6400.00 (3260.50) 50.7- 39400.00 (5391.45) 13.7-
Salaries- asst. store manager 1800.00 22036.15 1870.00 (70.00) 3.7- 22220.00 (183.85) .8-
Salaries- salespersons 3401.65 39773.89 4200.00 (798.35) 19.0- 43300.00 (4026.11) 9.2-
Salaries- clerical 449.35 449.35 1550.00 (1100.65) 71.0- 1550.00 (1100.65) 71.0-
Salaries- service manager 921.47 12349.65 1025.00 (103.53) 10.1- 10485.00 1864.65 17.8
Salaries- installers 850.95 6091.70 775.00 (424.05) 54.7- 5283.00 808.70 15.3
Payroll taxes-social security 642.53 8379.69 722.00 (79.47) 11.0- 9079.00 (699.31) 7.7-
Payroll taxes-fed unemployment 41.41 418.72 47.00 (5.59) 11.9- 430.00 (61.28) 12.8-
Payroll taxes-st unemployment 21.09 225.83 24.00 (2.91) 12.1- 251.00 (25.17) 10.0-
Alarm 37.89 454.68 38.00 (.11) .3- 456.00 (1.32) .3-
Auto .00 225.76 25.00 (25.00) 100.00- 277.00 (51.24) 18.5-
Depreciation 102.92 1235.04 103.00 (.08) .1- 1236.00 (.96) .1-
Postage & Freight .00 25.19 3.00 (3.00) 100.0- 12.0 13.19 109.9
Insurance 193.00 2394.00 198.00 .00 .0 2394.00 .00 .0
Insurance-owners comp 250.94 9054.52 382.00 (131.06) 39.3- 3195.00 (140.48) 4.4-
Office 37.40 871.59 100.00 (62.60) 62.6- 1225.00 (353.91) 28.9-
Printing 202.81 3014.30 300.00 (97.39) 32.5- 4050.00 (1035.20) 25.6-
Professional fees 21.65 151.56 22.00 (.85) 1.6- 154.00 (2.45) 1.6-
Part 2639.68 31679.76 2640.00 (.02) .0- 31680.00 (.24) .0-
Repairs & Maintenance 8.03 1211.82 225.0 (221.97) 98.7- 1794.00 (582.18) 32.5-
Property tax 134.06 1608.00 134.00 .00 .0 1608.00 .00 .0
Shop supplies 39.66 1004.95 81.00 (21.37) 26.4)- 728.00 276.95 33.0
Telephone 335.88 3895.29 318.00 37.83 11.9 3714.00 181.29 4.9
Utilities 421.68 5221.71 442.00 (20.37) 4.6- 5360.00 (138.29) 2.6-
Computer .00 100.21 .00 .00 .0 200.00 (99.79) 49.9-
Installation .00 28.95 20.00 (20.00) 100.0- 275.00 (246.05) 89.5-
Janitorial 124.00 1064.26 65.00 39.83 46.9 1025.00 39.26 3.3
Retirement 47.78 326.25 35.00 12.73 36.5 375.00 (48.75) 13.0-
Cash over & short 4.64 37.19 .00 4.64 .0 .00 37.19 .0
---------- ---------- ----------- ----------- ---------- ----------
Total expenses - Broadway 15420.789 181338.55 21764.00 (6553.24) 29.2- 192306.00 (10967.45) 5.7-
---------- ---------- ----------- ----------- ---------- ----------
Net profit (loss) - Broadway (8550.29) 5059.84 8228.00 (11876.29) 144.4- 8145.00 (3085.66) 37.9-
========== ========== =========== =========== ========== ==========
75
Telephone Warehouse -- San Antonio
Profit & loss statement - Callaghan Store
Period: 12/01/96 to 12/31/96
Reporting-prd Year-to-date Budget-reporting-period Budget-year-to-date
amount amount Amount Var-amt Var-% Amount Var-amt Var-%
Income - Callaghan
Pagers 3421.93 35365.76 5711.00 (2289.07) 40.1- 34796.00 569.76 1.6
Cellular - digital 799.90 2799.65 .00 799.90 .0 .00 2799.65 .0
Cellular - analog 22072.26 226951.99 28857.00 (6784.74) 23.5- 228244.00 (1292.01) .6-
Cellular accessories 5410.98 54506.44 7288.00 (1877.02) 25.8- 57183.00 (2681.56) 4.7-
Alarms 711.21 14246.94 974.00 (262.79) 27.0- 14790.00 (543.06) 3.7-
Service parts 1575.29 8989.41 909.00 666.29 73.3 7917.00 1072.41) 13.5
Non-commisionable labor .00 1378.84 120.00 (120.00) 100.0- 1237.00 91.84) 7.1
Programming labor-pager 3455.00 27547.00 4465.00 (810.00) 18.1- 25094.00 2453.00 9.3
Gift certificates .00 332.45 37.00 (37.00) 100.0- 161.00 171.45 106.5
Programming labor-cellular 1905.00 18175.90 2475.00 (570.00) 23.0- 17269.00 906.00 5.2
Labor 1055.00 311.93 308.00 747.05 242.5 3244.00 4067.83 125.4
Labor alarms 927.35 6133.96 594.00 333.50 56.1 7612.00 (1478.04) 19.4-
Volume bonus 5979.79 57191.67 8085.00 (2105.21) 26.0- 55298.00 1893.67 3.4
Features 260.00 3440.81 222.00 138.00 62.2 2441.00 999.81 41.0
Corner Store rental 114.00 451.50 39.00 75.00 192.8 392.00 59.50 15.2
Freight - in .00 11.00 .00 .00 .0 .00 11.00 .0
Customer discount - analog (22952.40) (223044.73) (33000.00) 11046.60 33.5 (226033.88 2988.27 1.3
Carrier comm earned - analog 38325.50 326142.00 44550.00 (11025.00) 24.7- 314288.00 11859.00 3.8
Carrier comm deactivations (5650.99) (44997.00) (9792.00) 4142.00 42.3 (45886.00 389.00 .9
Carrier comm true-up (1084.00) 829.69) 193.00 (1277.00) 661.7- 2368.00 (1538.31) 65.0-
Customer discount - digital (147.70) (647.75) .00 (147.75) .0- .00 (647.75) .0-
Carrier comm earned - digital .00 375.00 .00 .00 .0 .00 375.00 .0
Pager service - net & amts 12554.00 55971.85 3930.00 3624.00 40.6 48589.00 7882.85 15.2-
Expenses .00 .00 .00 .00 .0 55.00 (55.00) 100.0-
---------- ----------- --------- ---------- ----------- ----------
Total income - Callaghan 35251.73 579463.31 70965.00 (5733.24) 8.1- 47181.00 29854.81 5.4
Cost of sales - Callaghan
Pagers 18903.00 70342.64 11210.00 7693.36 68.6 63637.00 7205.64 11.3
Cellular - digital 604.00 2114.00 .00 604.00 .0 .00 2114.00 .0
Cellular - analog 14222.63 148861.14 18762.00 (4539.37) 24.2- 150476.00 (1614.86) 1.1-
Cellular accessories 3888.34 26937.82 2351.00 532.54 20.9 26064.00 893.82 3.4
Alarms 859.92 6053.92 487.00 372.92 76.6 7454.00 (1400.08) 18.6-
Other equipment 486.97 5544.45 425.00 11.87 2.8 4175.80 1369.45 32.8
Service parts 659.91 4706.69 454.00 204.91 45.1- 8933.00 773.69 19.7
Credit card finance charge 185.96 1759.79 140.00 (4.94) 3.5- 1543.00 216.79 14.1
Use tax 1036.72 9480.51 1077.00 9.71 .9 9064.00 416.51 4.6
Freight paid 177.26 876.68 54.00 123.26 228.8 750.00 126.68 16.9
Outside labor .00 559.50 654.00 (654.00) 100.0- 1786.00 (1226.50) 68.7-
Airfare certificates .00 125.00 21.00 (21.00) 100.0- 185.00 (60.00) 32.4-
Inventory adjustment 998.98 3311.49 200.00 793.93 397.0 2400.00 911.49 38.0
---------- ----------- --------- ---------- ----------- ----------
Total cost of sales-Gallaghan 41162.19 281193.63 36035.00 5127.19) 14.2 271467.00 9726.63 3.6
---------- ----------- --------- ---------- ----------- ----------
Gross profit-Gallaghan 24069.37 298269.63 34930.00 (10860.43) 31.1- 278142.00 20127.68 7.2
76
Period 12/01/96 to 12/31/96
Reporting-prd Year-to-date Budget-reporting-period Budget-year-to-date
amount amount Amount Var-amt Var-% Amount Var-amt Var-%
Expenses - Callaghan
Salaries- store manager 8824.70 59031.13 3200.00 124.50 8.9 86200.00 2831.18 7.8
Salaries- asst. store manager 8530.66 80648.27 2500.00 1030.33 41.2 27000.00 3643.27 13.5
Salaries- salespersons 5998.29 58183.90 6300.00 (301.71) 4.8- 51300.00 1833.90 3.6
Salaries- clerical 486.85 438.35 1550.00 (1111.65) 71.7- 1550.00 (1111.65) 71.7-
Salaries- service manager 1784.66 22011.09 2050.00 (315.34) 15.4- 24600.00 (2588.91) 10.5-
Salaries- installers 1886.00 16105.84 1550.00 (214.00) 18.8- 16288.00 (182.66) 1.1-
Payroll taxes-social security 1296.44 12144.13 1205.00 (1.56) .1- 12036.00 108.13 .9
Payroll taxes-fed unemployment 78.94 436.43 53.00 25.34 47.8 500.00 (13.55) 2.7-
Payroll taxes-st unemployment 87.56 288.65 26.00 11.53 44.8 282.00 1.65 .6
Alarm 97.85 434.63 38.00 (.11) .3- 456.00 (1.82) .3-
Auto .00 47.94 6.00 (6.00) 100.0- 282.00 (184.06) 79.3-
Depreciation 414.94 4979.28 415.00 (.06) .0- 4980.00 (.72) .0-
Dues & subscriptions .00 15.01 .00 .00 .0 .00 15.01 .0
Postage & freight .00 47.08 6.00 (6.00) 100.0- 26.00 21.08 81.1
Insurance 199.80 2408.00 199.00 .00 .0 2408.00 .00 .0
Insurance-workers comp 414.96 4100.62 426.00 (11.05) 2.6- 4101.00 (.38) .0-
Office 64.90 1001.49 100.00 (35.10) 35.1- 1260.00 (258.51) 20.5-
Printing 192.74 8834.01 300.00 (107.26) 35.8- 4058.00 (695.99) 17.2-
Professional fees 11.63 108.15 22.00 (.35) 1.6- 182.00 (23.75) 18.0-
Rent 3448.44 64021.00 5443.00 .00 .0 64021.00 .00 .0
Repairs & maintenance 129.20 2919.51 225.00 (95.70) 42.5- 3215.00 (295.49) 9.2-
Property tax 183.44 2220.00 185.00 .00 .0 2220.00 .00 .0
Shop supplies 51.12 1851.22 79.00 (27.88) 34.7- 735.00 316.22 43.0
Telephone 535.41 4467.88 437.00 118.41 27.1 4043.00 424.83 10.5
Utilities 511.46 7096.84 588.00 (76.32) 13.6- 7297.00 (290.66) 4.0-
Installation .92 701.80 20.00 (20.00) 100.0- 247.00 454.08 183.8
Janitorial 50.64 1218.95 85.00 (5.00) 5.9- 880.00 338.95 38.5
Refreshment 1.97 179.08 85.00 (33.03) 94.4- 880.00 (150.97) 45.7-
Cash over & short 122.21 575.62 .00 122.91 8 .00 575.62 .0
----------- ------------ -------- --------- -------- --------
Total express-Callaghan 16168.14 275154.17 27048.00 (934.60) 8.5- 270389.00 4765.17 1.8
---------- ------------ -------- -------- --------- --------
Net profit (loss) - Callaghan (2088.02) 23115.51 7887.00 (9925.83) 125.9- 7753.00 15362.51 198.1
========== ============ ======== ======== ======== ========
77
Telephone Warehouse - San Antonio
Profit & loss statement
Pager Department
Period 12/01/96 to 12/31/96
Reporting-prd Year-to-date Budget-reporting-period
amount amount Amount Var-amt Var-%
Income - Pager dept.
Pager billing 32033.12 372723.66 33573.00 (1539.78) 4.6-
Pager service - extended 261.00 7446.90 1535.00 (1274.00) 33.0-
Warranty .00 .00 (25.00) 25.00 100.0
-------- --------- -------- --------
Total income - Pager dept. 32294.12 380170.56 35083.00 (2788.78) 7.9-
Cost of sales - Pager dept.
Pager service 22626.79 187449.02 11230.00 1376.79 12.2
Pager extention discount 1289.95 12371.63 4800.00 (8510.85) 78.1-
Pager extention cost .00 110.96 .00 .00 .0
Pager service Telecom scase 957.38 4282.55 344.00 213.50 62.0
Inside Light 672.55 4400.16 311.00 361.75 116.3
-------- --------- -------- --------
Total cost of sales-Pager dept. 15146.70 158613.36 16705.00 (1558.21) 9.3-
-------- --------- -------- --------
Gross profit - Pager dept. 17247.48 221387.20 19378.00 (1230.57) 4.7-
Expense - Pager dept.
Billing-pager dept. 492.47 9409.85 750.00 (257.33) 34.3-
Clearance 11.80 121.99 11.00 .00 .0
Printing .98 258.66 .00 .00 .0
Current/Referral Pace .98 2280.33 228.00 (228.00) 100.0-
Telephone 1607.68 17614.29 1857.00 248.88 18.3
-------- --------- -------- --------
Total expenses - Pager dept. 2109.33 29678.64 2346.00 (236.45) 10.1-
-------- --------- -------- --------
Net profit (Loss) - Pager dept. 15037.33 191873.56 16032.00 (994.12) 6.2-
======== ========= ======== ========
Budget-year-to-date
Amount Var-amt Var-%
Income - Pager dept.
Pager billing 383193.00 (10469.34) 2.7-
Pager service - extended 11247.00 (3800.10) 33.8-
Warranty 234.00 (234.00) 100.0-
--------- ---------
Total income - Pager dept. 394674.00 (14303.44) 3.7-
Cost of sales - Pager dept.
Pager service 139450.00 (2000.98) 1.4-
Pager extention discount 22012.00 (9640.37) 43.8-
Pager extention cost 175.00 (65.00) 37.1-
Pager service Telecom scase 3566.00 716.55 20.1
Inside Light 2262.00 2138.16 94.3
--------- ---------
Total cost of sales-Pager dept. 167465.00 (8851.64) 5.3-
--------- ---------
Gross profit - Pager dept. 227209.00 (5651.80) 2.5-
Expense - Pager dept.
Billing-pager dept. 3675.00 734.69 3.5
Clearance 121.00 .00 .0
Printing .00 253.66 .0
Current/Referral Pace 1599.00 331.00 63.0
Telephone 16213.00 1396.29 8.6
--------- ---------
Total expenses - Pager dept. 26413.00 3265.64 12.4
--------- ---------
Net profit (Loss) - Pager dept. 200796.00 (8917.44) 4.4-
========= =========
78
Telephone Warehouse - San Antonio
Profit & loss statement
Period: 12/01/96 to 12/31/96
Reporting-prd Year-to-date Budget-reporting-period Budget-year-to-date
amount amount Amount Var-amt Var-% Amount Var-amt Var-%
Net profit loss, all stores 8763.00 96889.26 22360.00 (30123.22) 134.7- 57618.00 39221.26 63.1
======= ======== ======== ======== ======== ========
79
Schedule 2.12 - Contracts
1. Credit Agreement, dated as of December 31, 1996, amount HIG
Cellular Acquisition Corporation, HIG Cellular Acquisition Corporation II, Texas
Cellular Partner, L.P., the Lenders referred to therein and NationsCredit
Commercial Corporation, and certain documents executed in connection with the
Credit Agreement, including, but not limited to, the Security Agreement, the
Holdings Pledge Agreement and the Guaranty Agreement
2. TWI has guaranteed leases for
5315 E. Bannister Road, Kansas City, MO
9497 W. 75th Street, Overland Park, KS
3. See attached schedule of leases
4. Carrier Contracts with:
a) AT&T Wireless
b) AT&T Wireless - San Antonio
c) CelularOne
d) Parkway Paging
e) Page Net - Kansas
f) McCaw Communications
g) Page Net - DFW
5. None of the companies has a contract for the purchase of a
specific amount of inventory over a long period of time. However, we do issue
purchase orders for product to be delivered over the next 60 days.
6. Employment Agreement, dated as of December 31, 1996, between
Ronald L. Koonsman and HIG Cellular Acquisition Corporation.
7. Consulting Agreement, dated as of December 31, 1996, between HIG
Capital Management, Inc. and Telephone Warehouse, Inc.
8. Subordinated Note, dated as of December 31, 1996, by Texas
Cellular Partners, L.P. in favor of Mr. Ronald L. Koonsman (guaranteed by TWI
and NCI).
80
SCHEDULE 2.14(b) LEASES
Telephone Warehouse
Rental Information (North Texas Locations)
DECEMBER 1996 Lease Annual Written Co
Rental Payment Expiration Rental for Stock
Store Address Payee and Location Date Payment Transfers
==============================================================================================================================
Administrative MFM Realty Ltd $35,592.00 Yes
Sales & Mktg 1201 Third Ave # 1480 $37,596.00
2436 E Randol Mill Seattle, WA 96101 3/96 $38,868.00
==============================================================================================================================
(NCI)
Operations MFM Realty Ltd $69,909.00
2400 E. Randal 1201 Third Ave # 1480 $74,206.56 Yes
Seattle, WA 98101 $76,795.56
206-623-2700 12/99 $85,016.16
==============================================================================================================================
Administrative PIE VI $9,480.00
(TRAINING & STORAGE) Teel Enterprises, Inc. No
712 N Watson 9900 N Central Expressway, Ste 500
214-363-9184
==============================================================================================================================
# 100 JOSEY LBJ/Josey Lane Joint Venture 1/31/99 $56,734.80
3102 Maple Ave., L.B. 38 $58,484.88 Yes
Dallas, TX 75201 $60,234.84
214-954-0300
==============================================================================================================================
#200 FT. WORTH Mike Friedman 9/95 $37,813.06
1600 Two Lincoln Center 09/30/98 $38,400.00 No
5420 LBJ Freeway
Dallas, TX 75240
214/748-9171
(2) Upon periodic invoicing by
the Landlord, the monthly rent
may change and will include pass-
through of taxes and insurance.
==============================================================================================================================
#300 PLANO Mrs. Mary Moody 8/95 $38,400.00
4345 Manning Lane 8/98 $42,000.00 No
Dallas, TX 75220
(3) Tenant is to maintain insur-
ance coverage on the property.
The lease is silent regarding
taxes.
==============================================================================================================================
#400 DUNCANVILLE Red Hill Associates 12/95 $28,464.00
14001 N. Dallas Pkwy, Ste 8900 12/97 $46,042.20 Yes
Dallas, TX 75240
Attn: Ms Traci McFadden
214/960-8060
Charges for CAM, insurance and
Taxes subject to adjustment by
Landlord.
==============================================================================================================================
Market East RPF III
#500 MESQUITE Madison Marquette Realty 9/98 $50,652.48 Yes
P O Box 200156
Dallas, TX 75320-0156
214/613-6350
81
SCHEDULE 2.14(b) LEASES
Telephone Warehouse
Rental Information (North Texas Locations)
DECEMBER 1996 Lease Annual Written Co
Rental Payment Expiration Lease for Transfer
Store Address Payee and Location Date Pmts of Stock
==============================================================================================================================
CENTRAL Daniel Morguioff 09/30/97 $30,000.00 No
11440 N. Central Expressway
Dallas, TX 75243
214-368-1359
Tenant pays all insurance & taxes, by
separate payment
==============================================================================================================================
ARLINGTON Six Flags Joint Venture $42,430.06
17400 Dallas Pkwy, Ste 216 $43,030.08 Yes
Dallas, TX 75287 $43,630.08
214-407-9067 $44,230.08
12/99 $44,830.08
==============================================================================================================================
IRVING National Cellular $54,000.00 No
2400 E. Randol Mill
Arlington, TX 76011
==============================================================================================================================
HULEN Hulen Park Associates
PO Box 782257 $53,460.00
Wichita, KS 67278 8/99 $57,060.00 Yes
The $555.00 amount is estimate
for CAM insurance, and taxes
for the first year of the lease.
The amount is subject to change
by the landlord.
==============================================================================================================================
ARLINGTON Wimbledon Court 11/96 $39,275.88
6500 West Freeway, Ste. #900 11/99 $45,347.88 Yes
Ft. Worth, TX 76116
The tenant will pay its share
of CAM, insurance, and taxes,
included in the monthly payment.
==============================================================================================================================
HILLS Richland Square Shopping Center $22,374.96
10/99 $23,625.00 Yes
Attn: Danny Wilkerson
110 W. 7th, Ste. #1100
Ft. Worth, TX 76102
The tenant will pay its share
of CAM, insurance, and taxes,
included in the monthly payment.
==============================================================================================================================
MOCERICH VALLEY VIEW Mocerich Valley View Ltd. Partnership 1/31/96 $54,000.00 Yes
c/o Valley View Center
2040 Valley View Center
Dallas, TX 75240
==============================================================================================================================
GROVE FIELD TMPC Realty Services Gr. 4/97 $42,720.00 Yes
2741 S Baltline Rd #106
Carroltton, TX 75006
82
SCHEDULE 2.14(b) LEASES
TELEPHONE WAREHOUSE
RENTAL INFORMATION (SAN ANTONIO LOCATIONS)
DECEMBER 1996
- -------------
Lease ANNUAL Written Consent
RENTAL PAYMENT Expiration RENTAL for Stock
STORE ADDRESS PAYEE AND LOCATION Date PMTS Transfer
- -------------------------------------------------------------------------------------------------------
#210 WALZEM Windsor Place Shopping Center 3/97 $56,832.00 Yes
c/o Meridian Management Group
301 Howard St. Ste 1320
San Francisco, CA 94105
(1) Tenant will pay its proportionate
share of shopping center insurance
and taxes upon invoicing by the
Landlord. Final 36 months of lease
term begins 7-1-94
- ------------------------------------------------------
#220 BROADWAY Subiaco, Inc. 2/99 $31,679.76 Yes
115 Broadway, First Floor
San Antonio, TX 78205-1903
(2) The $254.98 of "CAM" also includes
tenants projected share of taxes and
insurance. The lease provides for
yearly reconciliation and reprojection
of monthly CAM deposits.
- ------------------------------------------------------
#230 CALLAGHAN 6100 CALLAGHAN ROAD, INC. $59,100.00
7401 WURZBACH $62,208.00
SAN ANTONIO, TX 78229 $65,316.00 Yes
5/98 $68,424.00
(3) The lease is silent regarding
CAM. The tenant agrees to pay its
proportionate share of insurance
and taxes as they become due and
are invoiced by the Landlord.
83
SCHEDULE 2.14(b) LEASES
Telephone Warehouse
Rental Information (Kansas City)
December 1996
Lease Annual Written Consent
Expiration Rental for Stock
Payee & Address Date Payments Transfer
- -------------------------------------------------------------------------------------------------------
#310 Bannister Square DOM Company 2/00 $33,000.00 Yes
A Tier of MD Management $36,086.40
5201 Johnson Dr. #450 $37,586.40
Mission, KS 66205 $40,586.40
913-831-3020
- ------------------------------------------------------
#320 Independence Square Kessinger/Hunter & Co. Inc. 7/00 $27,834.12 Yes
2600 Grand Ave., Ste 700 $30,334.08
Kansas City, MO 64108 $32,834.04
816-842-2690
*CAM includes trash removal
- ------------------------------------------------------
#330 Overland Park Meg Associates 5/98 $50,000.04 Yes
c/o Jack Fingersh
Lewis, Rice & Fingersh
1010 Walnut, Ste 500
Kansas City, MO 64106
- ------------------------------------------------------
#340 Gladstone McCaffrey-McIntyre 9/98 $26,949.60 Yes
Investments
9627 W. 87th Street
Overland Park, KS 66212
84
Schedule 2.13 - Title and Related Matters
The following is a list of UCC filings for TWI and NCI:
Number Jurisdiction Debtor Date Filed Secured Party
------ ------------ ------ ---------- -------------
92154494 Florida NCI Aug. 5, 1992 Matsushita
8700107681 Texas NCI Apr. 20, 1987 Matsushita
8800121853 Texas NCI May 20, 1988 Matsushita
8900105914 Texas NCI May 8, 1989 Mitsubsishi
9200026629 Texas NCI Feb. 11, 1992 Pioneer Elec.
9500123892 Texas NCI June 26, 1995 Mitsubishi
9600137662 Texas NCI July 12, 1996 Sony Elec.
9200015344 Texas TWI Jan. 24, 1992 MetroCel
9200026629 Texas TWI Feb. 11, 1992 Pioneer
9400009278 Texas TWI Jan. 14, 1994 Wimbledon Ct
1782766 Indiana NCI May 20, 1992 Panasonic
Communications
and
Systems Company
9600143463 Texas TWSA July 22, 1996 ACC/McCaw
Cellular of
San Antonio
In addition, numerous UCC's were filed by NationsCredit Commercial Corporation
in connection with the Credit Agreement with NationsCredit. These UCC's covered
all accounts, chattel paper, contract rights, general intangibles, inventory,
equipment and documents now owned by hereafter acquired by both TWI and NCI.
NationsCredit also recorded a Deed of Trust, Assignment, Assignment of Leases
and Rents, Security Agreement and Fixture Filing, dated as of December 31, 1996,
covering land owned by National Cellular, Incorporated in Irving, Texas.
85
Schedule S-4
Carrier contracts - LA Cellular Distribution Agreement with Lets Talk Cellular
of America, Inc.
Retail representative agreement between BellSouth Cellular National Marketing,
Inc. and Let's Talk Cellular of America, Inc. dated July 20, 1995
Authorized agency agreement for cellular radio service between Bell Atlantic
Mobile Systems of Washington, Inc., Bell Atlantic Mobile Systems of Baltimore,
Inc. and Let's Talk Cellular of America, Inc. dated January 6, 1995 - Amended
effective 11/1/96
Agency agreement between Cellular Telephone Company and Let's Talk Cellular of
America, Inc. dated December 30, 1993 - Last Amendment dated October 2, 1996
Kiosk staffing agreement with AT&T dated June 1, 1996
Kiosk staffing agreement with AT&T Wireless of Colorado, Inc. ("ATWS") and
I.TC. Kiosk Management Corporation dated September 12, 1996
Sales dealer agreement between (PR Services, Inc. a/k/a Cellular One and Let's
Talk Cellular of America, Inc. dated January 24, 1997
Sales representation agreement between Los Angeles Cellular Telephone Company
and Let's Talk Cellular of America dated January 22, 1997
General purchase agreement between BellSouth Mobility Inc. and Let's Talk
Cellular, Inc. dated July 31, 1991
Retail product distribution agreement between Prime Co. Personal
Communications. LP and Let's Talk Cellular of America, Inc.
Assignment assumption and consent agreement between Airtouch Cellular of
Georgia.
("Airtouch") and Let's Talk Cellular of America, Inc. dated August 30, 1996
Memorandum of Understanding between Omnipoint and Let's Talk Cellular of
America, Inc. Cellular One PR Paging
Universal
Sprint PCS sales agreement with Let's Talk Cellular of America, Inc.
Credit facility agreements with Republic National Bank dated September 5, 1995:
- - Letter agreement
- - Master promissory note
- - Term note I
- - Security agreement
Credit facility agreements with Republic National Bank dated December 4, 1995:
- - Amendment to letter agreement ("First Amendment")
- - Renewal note
- - Incremental note
- - Combined note
Consent letter from Republic National Bank dated June 27, 1996 ("Second
Amendment")
Consent letter from Republic National Bank dated July 29, 1996 ("Consent
Letter")
Credit facility agreements with Republic National Bank dated September 3, 1996:
- - Amendment to letter agreement ("Third Amendment")
- - Term not II
86
Schedule 3.7
------------
Complaint filed by Jay Wasserman-March 1996 Case #96-17295-CA-01(09)
Judgment relative to the Westchester Mall, White Plains, NY-September 1995
(filed in City Court of White Plains, County of Westchester, State of New York
Index No. SP5542/95)
Workers' Compensation Claims Pending-
- -Four reports of injury filed in NY all relative to the Roosevelt Field Mall
store
87
SCHEDULE 3.8
U.S. Equal Employment Opportunity Commission charge #100960012 (9/24/95)
FLSA Self-Audit Letter of Request (3/25/97)
88
Schedule 3.9
Carrier contracts-
Retail representative agreement between BellSouth Cellular National Marketing,
Inc. and Lets Talk Cellular of America, Inc. dated July 20, 1995
Authorized agency agreement for cellular radio service between Bell Atlantic
Mobile Systems of Washington, Inc., Bell Atlantic Mobile Systems of Baltimore,
Inc. and Let's Talk Cellular of America, Inc. dated January 6, 1995 - Amended
effective 11/1/96
Agency agreement between Cellular Telephone Company and Let's Talk Cellular of
America, Inc. dated December 30, 1993 - Last Amendment dated October 2, 1996
Kiosk staffing agreement with AT&T dated June 1, 1996
Kiosk staffing agreement with AT&T Wireless of Colorado, Inc. ("ATWS") and LTC
Kiosk Management Corporation dated September 12, 1996
Sales dealer agreement between CCPR Services, Inc. a/k/a Cellular One and Let's
Talk Cellular of America, Inc. dated January 24, 1997
Sales representation agreement between Los Angeles Cellular Telephone Company
and Let's Talk Cellular of America dated January 22, 1997
General purchase agreement between BellSouth Mobility Inc. and Let's Talk
Cellular of America dated July 31, 1991
Retail product distribution agreement between PrimeCo. Personal Communications,
LP and Let's Talk Cellular of America, Inc.
Assignment, assumption and consent agreement between Airtouch Cellular of
Georgia, ("Airtouch") and Let's Talk Cellular of America, Inc. date August 30,
1996
Memorandum of Understanding between Omnipoint and Let's Talk Cellular of
America, Inc.
Cellular One PR Paging
Universal
Vendor contracts-
Dealer contract agreement between Mobile Security Communications, Inc. and Lets'
Talk Cellular of America, Inc. dated January 31, 1997
Reseller agreement between Pagemart, Inc. and Let's Talk Cellular of America,
Inc. dated October 6, 1995.
Sales agent program agreement between Camotel, Inc. and Let's Talk Cellular of
America, Inc. dated
Motorola (to confirm)
Sony (to confirm)
Credit facility agreements Republic National Bank (see Schedule 3.4)
Capital lease agreement with Panasonic Communications (corporate office
telephone system)
Capital lease agreements with Citicorp Leasing (eight stores point-of-sales
systems)
Capital lease agreement with Minolta Business Systems (one copier)
Capital lease agreements with Heritage Financial Services (two stores
point-of-slaes systems)
89
Schedule 3.9(cont'd)
Insurance policies -
Coverage Carrier
- --------
Property Atlantic Mutual Insurance Companies
General liability Atlantic Mutual Insurance Companies
Automobile Atlantic Mutual Insurance Companies
Inland Marine Atlantic Mutual Insurance Companies
Excess umbrellas liability Atlantic Mutual Insurance Companies
Workers' compensation -
All states except PR Firemen's Fund Insurance Co.
Puerto Rico Puerto Rico State Insurance Fund Corporation
Stock purchase agreement with Al Sorensen - October 1994
First amendment to stock purchase agreement with Al Sorensen - May 1996
Consulting agreement with Al Sorensen - October 1994
First amendment to consulting agreement with Al Sorensen - May 1996
Series A Preferred Stock Purchase Agreement dated June 25, 1996 between Let's
Talk Cellular of America, Inc. and HIG Fund V. Inc.
Shareholders Agreement dated June 25, 1996
Redemption Agreement dated June 25, 1996
Employment Agreement with Nick Molina, dated June 25, 1996
Employment Agreement with Brett Bencridge dated June 25, 1996
Employment agreement with Anne Gozlan - May 1995
Amendment to Employment Agreement with Anne Gozlan dated June 25, 1996
Consulting Agreement with HIG Capital Management dated June 25, 1996
Renewal Promissory Note with Nick Molina dated June 25, 1996
Renewal Promissory Note with Brett Beveridge dated June 25, 1996
Escrow Agreement dated June 25, 1996
Asset Purchase Agreement between Let's Talk Cellular of America. Inc. and North
Point Cellular. Inc. and Michael Weinstock and Marc Green dated August 31, 1996
Real Estate Leases
Corporate office 5200 NW 77 Court, Miami, FL 33166
Dadeland Mall 7565 N. Kendall Drive Miami FL 33156
Aventura Mall 19501 Biscayne Blvd. North Miami Beach, FL 33180
Bayside Market Place #1 401 Biscayne Blvd. Miami, FL 33132
Florida Mall 8601 S. Orange Blossom Trail. Orlando FL 32809
Lexox Square 3393 Peachtree Road NE. Atlanta. GA 30326
Manhattan Mall 901 Avenue of the Americas, New York, NY 10001
Town Center at Boca 6000 West Glades Road Boca Raton, FL 33431
Westland Mall 1695 West 49 Street, Hialeah. FL 33012
Cutler Ridge Mall 20505 South Dixie Hwy, Miami, FL 33189
Miami International Mall 1455 NW 107 Avenue, Miami, FL 33172
Altamonte Springs 451 Altamonte Ave Altamonte Springs, FL 32701
Tysons Corner 7903 Tysons Corner Center, Mclean, VA 22102
Montgomery Mall 7111 Democracy Blvd. Bethesda, MD 20817
90
Schedule 3.9 Cont'd
St. Charles Towne Center 11110 Mall Circle, Waldorf, MD 20603
Annapolis Mall 2002 Annapolis Mall, Annapolis, MD 21401
Potomac Mills 2700 Potomac Mill Circle, Woodbridge, VA 22192
Union Station 50 Massachusetts Ave. Washington, DC 20002
Fashion Center at Pentagon City 1100 South Hayes Street Arlington, VA 22202
Mall of the Americas 7795 West Flagler, Miami, FL 33144
Pombroke Lakes Mall 11401 pines Boulevard, FL 33026
Bayside Market Place #2 401 Biscayne Blvd. Miami, FL 33132
Orlando Airport 9341 Airport Blvd. #A. Orlando, FL 32827
Sawgrass Mills 12801 W. Sunrise Blvd. Sunrise, FL 33323
Seminole Town Center 183 Town Center Circle Sanford, FL 32771
Coral Square Mall 9345 West Atlantic Blvd. Coral Springs, FL 33065
Burlington Center 2501 Burlington, Mt, Holly Rd. Burlington, NJ 08016
Market East 901 Market St. Philadelphia, PA 19107
Echelon Mall 3002 Echelon Mall Voorhes, NJ 08043-1903
Park Meadows 8405 Park Meadows Center Drive Littleton, CO 80124
Boyaton Beach Mall 801 N. Congress Avenue, Boynton Beach, FL 33426
Cherry Hill Mall 2000 Route 38, Space #2009, Cherry Hill NJ 08002
Cherry Hill Mall #2 2000 Route 38, Space #K, Cherry Hill NJ 08002
The Falls 8888SW 136 St. Miami FL, 33176
Montgomery Mall PA 230 Montgomery Mall, North Wales, PA 19454
West Oaks 9401 W Colonial Dr. Ocoec. FL 34761
Franklin Mills 1833 Franklin Mill Center, Philadelphia, PA 19154
The Citadel 750 Citadel Dr. East, Colorado Spring, CO 80908
Chapel Hills 1710 Briargate Blvd. Colorado Spring, CO 80920
Court at King of Prussia 344 mall Blvd. King of Prussia, PA 19406
Beach Place 17 South Atlantic Blvd., Ft. Lauderdale, FL 33316
Indian River Mall 6200 20th Street, Vero Beach, FL 32966
Granite Run Mall 1067 W. Baltimore Pike, Media, PA 19063
Oxford Valley Mall 2300 E. Lincoln Highway Lanhorne, PA 19047
Gwinnett Place 2100 Pleasant Hill Rd. Duluth, GA 30136
Towne Center at Cobb 400 Barrett Parkway, Kennesaw GA 30144
North Point Mall 1220 North Point Circle, Alpharetta, GA 30302
Perimeter Mall 4400 Ashford-Dunwoody Rd. Atlanta, GA 30346
Buckhead 2955 Peachtree Rd. NE, Atlanta GA 30305
Northlake Mall 1000 Northlake Mall, Atlanta GA 30345
Smith Haven Mall Routes 25 & 347, Lake Grove, NY 11755
White Marsh Mall 8200 Perry Hall, Baltimore MD 21236
Exton Square 100 Exton Square, Exton, PA 19341
Los Cerritos 239 Los Cerritos Center, Cerritos , CA 90703
Fox Hills Mall 294 Fox Hills Mall, Culter, CA 90230
Mayaguez Mall Carretera #2, Kilometro 159.4, Mayaguez PR 00680
Willow Grove Park 2500 Moreland Road, Willow Grove, PA 19090
Santa Ana 2800 N. Main Street, Santa Ana CA 92705
Plaza Carolina Avenida Fragoso, Salida 65 Infraicria, Carolina, PR 00988
Owings Mills 10500 Mill Run Circle, Ownings, MD 21117-4205
91
Schedule 3.9 (cont'd)
---------------------
Plaza Del Norte 506 Truncado Street Hatillo, PR 00659-2709
Roosevelt Field Roosevelt Field Mall, Garden City, NY 11530
Broadway Mall 358 B Broadway Mall, Hicksville, NY 11801
Galleria South Bay 1815 Hawthone Blvd. Redondo Beach, CA 90278
The Mall in Columbia 10300 Little Patuxent Parkway, Columbia, MD 21044
92
Schedule 3.10(a)
Security interest in accounts receivable inventory equipment, general
intangibles, chattel paper, instruments and documents granted to Republic
National Bank in connection with credit facility agreements entered into on
September 5, and December 4, 1995, June 27, and July 29, 1996, respectively (see
Schedule 3.4). For a more complete description of the security interest please
refer to the security agreement.
93
LET'S TALK CELLULAR OF AMERICA, INC.
FINANCIAL STATEMENTS
JANUARY 1997
94
BALANCE SHEET
JANUARY 31, 1997
- ----------------------------------------------------------------------
January
CURRENT ASSETS:
Cash $1,016,479
Trade accounts receivable 25,344
Carriers receivable 1,458,234
Inventory 3,400,757
Prepaid expenses 490,743
Other current assets 131,106
----------
Total current assets 6,522,663
----------
Fixed assets, cost 3,302,219
Accumulated depreciation (569,516)
----------
Fixed assets, net 2,732,703
----------
Preopenings-cost 202,637
Accumulated amortization (86.090)
----------
Preopenings, net 116,547
Deferred tax asset 17,174
Other non-current assets 47,263
----------
Other non-current assets 180,984
----------
TOTAL $9,436,350
==========
LIABILITIES AND SHAREHOLDERS' EQUITY
CURRENT LIABILITIES:
Trade accounts payable $1,882,545
Line of credit 800,000
Accrued expenses and other liabilities 830,231
Capital lease obligations 26,817
Customer deposits 38,752
Deferred revenue 92,485
Income taxes payable 327,086
----------
Total current liabilities 3,997,916
----------
Loans from shareholders 258,100
Bank term loan 753,333
Long-term portion of capital lease obligations 26,226
Deferred tax liability 19,294
Other liabilities 42,404
----------
Total other liabilities 1,099,357
----------
SERIES A PREFERRED STOCK & SHAREHOLDER'S EQUITY:
Common stock, $.001 par value, 50,000,000 shares
authorized, 650,000 issued and outstanding 650
Series A preferred stock, $30 par value, 150,000 shares
authorized, 33,334 issued and outstanding 3,000,000
Additional paid-in capital 211,118
Retained earnings 1,127,309
----------
Total shareholders' equity 4,339,007
----------
TOTAL $9,436,350
==========
95
LET'S TALK CELLULAR OF AMERICA, INC.
STATEMENT OF OPERATIONS
PERIOD ENDED JANUARY 31, 1997 (6 months)
- -----------------------------------------------------------------------
REVENUES:
Sales $ 5,615,016
Usage commissions 6,064,381
Other 300,000
-------------
Total revenues 11,979,397
COST OF SALES 5,346,647
-------------
GROSS PROFIT 6,632,750
-------------
SELLING, GENERAL AND ADMINISTRATIVE EXPENSES
Selling, general and administrative 5,325,324
Depreciation and amortization 193,011
-------------
Total operating expenses 5,518,335
-------------
INCOME FROM OPERATIONS 1,114,415
OTHER EXPENSE- Interest expense, net 80,681
-------------
INCOME BEFORE PROVISION FOR INCOME TAXES 1,033,734
PROVISION FOR INCOME TAXES 356,000
-------------
NET INCOME $ 677,734
=============
96
STATEMENT OF CASH FLOWS
PERIOD ENDED JANUARY 31, 1997
- ----------------------------------------------------------------------
YTD 1997
---------
CASH FLOWS FROM OPERATING ACTIVITIES
Net income/(loss) $ 677,734
Income tax (expense)/credit 356,000
Losses on store closings -
Provision for settlements of litigation -
Depreciation and amortization 167,379
Preopening amortization 25,633
(Increase)/Decrease in: -
Carrier receivables (855,462)
Inventory (2,190,599)
Prepaid expenses (459,519)
Trade receivables (c/c) (7,594)
Other assets (103,078)
Increase/(Decrease) in: -
Trade accounts payable 1,041,055
Accrued expense and other liab. 347,136
Income taxes payable (89,675)
Customer deposits (25,864)
Cash provided by/(used in) -----------
operating activities (1,116,854)
-----------
CASH FLOWS FROM INVESTING ACTIVITIES
Fixed assets acquisitions (1,575,230)
Store preopening costs (105,717)
Proceeds from disposals -
Cash provided by/(used in) -----------
investing activities (1,680,947)
-----------
CASH FLOWS FROM FINANCING ACTIVITIES
Capital lease (28,419)
Term Loan RNB 503,333
Proceeds from/(repayments of) shareholders loans -
Proceeds from capital contributions -
Line of credit increase/(decrease) (27,000)
Cash provided by/(used in) -----------
financing activities 447,914
-----------
Net increase/(decrease) in cash (2,349,887)
Cash, beginning (including $1,009,194 in escrow) 3,366,366
Cash, ending $ 1,016,479
97
Exhibits 7.1/7.3
OFFICERS' CERTIFICATE
This certificate is delivered to Let's Talk Cellular & Wireless, Inc.,
a Florida corporation f/k/a Let's Talk Cellular of America, Inc., Merger Sub 1,
Inc., a Delaware corporation, and Merger Sub 2, Inc., a Texas corporation
(collectively, the "Buyers"), pursuant to Sections 7.1 and 7.3 of the Agreement
and Plan of Merger (the "Agreement"), dated as of April 11, 1997 as amended and
restated as of June __, 1997 by and between the Buyers and Telephone Warehouse,
Inc., a Delaware corporation, National Cellular, Incorporated, a Texas
corporation and Texas Cellular Partners, L.P., a Delaware limited partnership
("TCP"). Capitalized terms used herein without definition shall have the
meanings as set forth in the Agreement.
The undersigned hereby certify that they are the duly elected and
acting President and Vice President and Secretary, respectively, of HIG Texas
Cellular Company, the general partner of TCP and that the representations and
warranties of TCP in Article II of the Agreement are true and complete on the
date hereof and TCP has taken all actions and performed all covenants required
under the Agreement to be performed by it, unless waived in writing by the
Buyers.
There has been no Material Adverse Change since April 11, 1997. No
preliminary or permanent injunction or other Order issued by a court of
competent jurisdiction or by any governmental agency, or any Regulation is in
effect which would prevent the consummation of the transactions contemplated by
the Agreement.
98
IN WITNESS WHEREOF, we have signed this certificate this ____ day of
June, 1997.
TEXAS CELLULAR PARTNERS, L.P.
By: HIG Texas Cellular Company
By:
-------------------------------------
Name: Anthony Tamer
Title: President
By:
-------------------------------------
Name: Douglas Berman
Title: Vice President & Secretary
99
Exhibit 7.5
Filed as Exhibit 10.3 to the
Registrant's Registration Statement
on Form S-1 (No. 333-34595).
100
Exhibit 7.6
Filed as Exhibits 10.9 and 10.10 to the
Registrant's Registration Statement
on Form S-1 (No. 333-34595).
101
Exhibit 7.8
Filed as Exhibit 10.16 to the
Registrant's Registration Statement
on Form S-1 (No. 333-34595).
102
Exhibits 8.1/8.3
OFFICERS' CERTIFICATE
This certificate is delivered to Telephone Warehouse, Inc., a Delaware
corporation ("TWI"), National Cellular, Incorporated, a Texas corporation
("NCI"), and Texas Cellular Partners, L.P., a Delaware limited partnership
("TCP" and, together with TWI and NCI, the "TWI Parties"), pursuant to Sections
8.1 and 8.3 of the Amended and Restated Agreement and Plan of Merger (the
"Agreement"), dated as of June ___, 1997 by and between the TWI Parties and
Let's Talk Cellular & Wireless, Inc., a Florida corporation, Merger Sub 1, Inc.,
a Delaware corporation ("Merger Sub 1"), and Merger Sub 2, Inc., a Texas
corporation ("Merger Sub 2" and, together with Merger Sub 1, the "Buyers").
Capitalized terms used herein without definition shall have the meanings as set
forth in the Agreement.
The undersigned hereby certify that they are the duly elected and
acting Chief Executive Officer and Chief Operating Office of each Buyer, and
that the representations and warranties of each Buyer in Article III of the
Agreement are true and complete on the date hereof and the Buyers have taken all
actions and performed all covenants required under the Agreement to be performed
by them, unless waived in writing by the TWI Parties.
There has been no Material Adverse Change since April 11, 1997. No
preliminary or permanent injunction or other Order issued by a court of
competent jurisdiction or by any governmental agency, or any Regulation is in
effect which would prevent the consummation of the transactions contemplated by
the Agreement.
103
IN WITNESS WHEREOF, we have signed this certificate this ____ day of
June, 1997.
MERGER SUB 1, INC.
By:
------------------------------------------
Name: Nick Molina
Title: Chief Executive Officer
By:
------------------------------------------
Name: Brett Beveridge
Title: Chief Operating Officer
MERGER SUB 2, INC.
By:
------------------------------------------
Name: Nick Molina
Title: Chief Executive Officer
By:
------------------------------------------
Name: Brett Beveridge
Title: Chief Operating Officer