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EXHIBIT (b) 2
PHONETEL TECHNOLOGIES, INC. AND SUBSIDIARIES
UNAUDITED PRO FORMA COMBINED CONDENSED BALANCE SHEET AT DECEMBER 31, 1995
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International International
PhoneTel Payphones Payphones Paramount
Technologies South Carolina Tennessee Communications Ref
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Assets
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Current assets:
Cash $713,462 $11,336 $17,321 $479,984 [1,2]
Accounts receivable, net 901,508 142,801 48,996 275,623 [1]
Other current assets 185,634 - 15,020 - [1]
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Total current assets 1,800,604 154,137 81,337 755,607
Property and equipment, net 14,099,111 1,022,427 276,811 788,582 [2]
Intangible assets, net 11,592,157 126,810 - 146,029 [1,2]
Other assets 1,425,384 - - 15,098 [1,2]
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$28,917,256 $1,303,374 $358,148 $1,705,316
================= ================== ================= ===================
Liabilities and Shareholders' Equity
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Current liabilities:
Current portion of long-term debt $1,010,412 $475,888 $73,978 $483,246 [1,2]
Current portion capital leases 288,972 - - -
Accounts payable 2,772,306 151,539 2,717 373,866 [1,2]
Accrued expenses 1,610,100 - 18,392 221,490 [1,2]
Deferred income taxes - - 6,000 - [1]
Deferred revenues - - - -
Contractual settlements and
restructuring charges 962,338 - - -
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Total current liabilities 6,644,128 627,427 101,087 1,078,602
Long-term debt 9,318,501 643,935 118,654 - [2]
Obligations under capital leases 3,243,965 95,895 - - [2]
14% convertible preferred stock - - - - [2]
Other shareholder's equity:
10% nonvoting preferred stock 5,305,340 - - -
10% redeemable preferred stock 1 - - -
8% cumulative preferred stock 981,084 - - -
7% convertible preferred stock 200,000 - - -
Common stock 28,554 10,000 3,321 100 [2]
Additional paid in capital 16,649,559 57,224 106,000 19,900 [2]
Accumulated (deficit) earnings (13,453,876) (131,107) 29,086 606,714 [1,2]
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9,710,662 (63,883) 138,407 626,714
================= ================== ================= ===================
$28,917,256 $1,303,374 $358,148 $1,705,316
================= ================== ================= ===================
Pro Forma Pro Forma
Adjustments Adjustments
for for Debt Pro Forma
Acquisitions Ref Restructuring Combined
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Assets
Current assets:
Cash ($14,883,421) [3] $14,552,395 $891,077
Accounts receivable, net (418,424) - 950,504
Other current assets (15,020) - 185,634
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Total current assets (15,316,865) 14,552,395 2,027,215
Property and equipment, net 7,748,805 [3] 346,500 24,282,236
Intangible assets, net 9,061,294 [3] 3,838,638 24,764,928
Other assets (940,098) - 500,384
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$553,136 $18,737,533 $51,574,763
=================== ================= ===================
Liabilities and Shareholders' Equity
- ------------------------------------
Current liabilities:
Current portion of long-term debt ($874,208) [3] $1,305,954 $2,475,270
Current portion capital leases - - 288,972
Accounts payable (376,584) [3] (2,619,746) 304,098
Accrued expenses (361,421) - 1,488,561
Deferred income taxes (6,000) - -
Deferred revenues - [3] 1,200,000 1,200,000
Contractual settlements and
restructuring charges - [3] (753,500) 208,838
------------------- ----------------- -------------------
Total current liabilities (1,618,213) (867,292) 5,965,739
Long-term debt (762,589) [3] 14,567,927 23,886,428
Obligations under capital leases (76,419) [3] (3,243,965) 19,476
14% convertible preferred stock 621,664 [3] 5,647,823 6,269,487
Other shareholder's equity:
10% nonvoting preferred stock - - 5,305,340
10% redeemable preferred stock - [3] (1) -
8% cumulative preferred stock - [3] (981,084) -
7% convertible preferred stock - [3] (200,000) -
Common stock (8,103) [3] 164 34,036
Additional paid in capital 2,901,488 [3] 6,503,792 26,237,963
Accumulated (deficit) earnings (504,692) [3] (2,689,831) (16,143,706)
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2,388,693 2,633,040 15,433,633
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$553,136 $18,737,533 $51,574,763
=================== ================= ===================
The accompanying notes are an integral part of these financial statements.
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