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EXHIBIT (B) 3
PHONETEL TECHNOLOGIES, INC. AND SUBSIDIARIES
UNAUDITED PRO FORMA COMBINED CONDENSED STATEMENT OF OPERATIONS FOR THE YEAR ENDED DECEMBER 31, 1995
- ---------------------------------------------------------------------------------------------------------------------------
PhoneTel International International
Technologies Payphones Payphones Paramount
[6] South Carolina Tennessee Communications
----------------- ---------------- --------------- -------------------
REVENUES:
Coin calls and commissions $14,811,361 $3,308,814 $1,194,621 $5,606,758
Operator services and other 3,906,622 - - -
---------------- --------------- -------------------
-----------------
18,717,983 3,308,814 1,194,621 5,606,758
----------------- ---------------- --------------- -------------------
COSTS AND EXPENSES:
Line and transmission charges 5,475,699 977,737 608,061 1,423,479
Location commissions 3,467,626 582,182 - 1,011,700
Other operating expenses 5,310,262 269,973 - 577,606
Depreciation and amortization 4,383,049 415,827 - 393,204
Selling, general and administrative 3,200,742 923,428 563,028 1,562,983
Contractual settlements and
restructuring charges 2,169,503 - - -
----------------- ---------------- --------------- -------------------
24,006,881 3,169,147 1,171,089 4,968,972
----------------- ---------------- --------------- -------------------
(Loss) income from operations (5,288,898) 139,667 23,532 637,786
Other income (expense) - (2,915) 916 -
Interest expense (781,808) (133,769) - (64,210)
Interest expense - accretion of debt (55,103) - - -
Interest income 16,112 - 666 12,468
----------------- ---------------- --------------- -------------------
(Loss) Income before income taxes
and extraordinary items (6,109,697) 2,983 25,114 586,044
Income taxes - - 2,300 -
----------------- ---------------- --------------- -------------------
(LOSS) INCOME BEFORE
EXTRAORDINARY ITEMS ($6,109,697) $2,983 $22,814 $586,044
================= ================ =============== ===================
Earnings per share calculation:
Preferred dividend payable in cash (309,668) - - -
Preferred dividend payable in kind - - - -
Redemption of 10%, 8%, and
7% Preferred - - - -
----------------- ---------------- --------------- -------------------
(Loss) income before extraordinary
items applicable to
common shareholders ($6,419,365) $2,983 $22,814 $586,044
================= ================ =============== ===================
Per common share loss before
extraordinary items ($3.29)
=================
Weighted average number of shares 1,950,561 365,520 190,069
================= ================ ===============
Pro Forma Pro Forma
Adjustments Adjustments
for for Debt Pro Forma
Ref Acquisitions Ref Restructuring Combined
------- -------------------- ------- ------------------ -------------------
REVENUES:
Coin calls and commissions - - $24,921,554
Operator services and other - - 3,906,622
-------------------- ------------------ -------------------
- - 28,828,176
-------------------- ------------------ -------------------
COSTS AND EXPENSES:
Line and transmission charges - - 8,484,976
Location commissions - - 5,061,508
Other operating expenses - - 6,157,841
Depreciation and amortization [4] $3,463,023 - 8,655,103
Selling, general and administrative [4] (1,146,051) - 5,104,130
Contractual settlements and
restructuring charges - - 2,169,503
-------------------- ------------------ -------------------
2,316,972 - 35,633,061
-------------------- ------------------ -------------------
(Loss) income from operations (2,316,972) - (6,804,885)
Other income (expense) - - (1,999)
Interest expense - [5] ($3,462,527) (4,442,314)
Interest expense - accretion of debt - [5] (3,022,564) (3,077,667)
Interest income - - 29,246
-------------------- ------------------ -------------------
(Loss) income before income taxes
and extraordinary items (2,316,972) (6,485,091) (14,297,619)
Income taxes - - 2,300
-------------------- ------------------ -------------------
(LOSS) INCOME BEFORE
EXTRAORDINARY ITEMS ($2,316,972) ($6,485,091) ($14,299,919)
==================== ================== ===================
Earnings per share calculation:
Preferred dividend payable in cash - [5] 309,668 -
Preferred dividend payable in kind - [5] (619,904) (619,904)
Redemption of 10%, 8%, and
7% Preferred - [5] (2,002,386) (2,002,386)
-------------------- ------------------ -------------------
(Loss) income before extraordinary
items applicable to
common shareholders ($2,316,972) ($8,797,713) ($16,922,209)
==================== ================== ===================
Per common share loss before
extraordinary items ($6.75)
===================
Weighted average number of shares 2,506,150
===================
The accompanying notes are an integral part of these financial statements.
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