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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
- -------------------------------------------------------------------------------
(6)
World & Public International International
PhoneTel Telephone Payphones Payphones
Technologies As Adjusted South Carolina Tennessee
----------------- ---------------- ----------------- ------------------
REVENUES:
Coin calls and non-coin $18,587,862 $8,015,757 $3,360,596 $1,194,621
Other 130,121 242,481 - -
----------------- ---------------- ----------------- ------------------
18,717,983 8,258,238 3,360,596 1,194,621
----------------- ---------------- ----------------- ------------------
OPERATING EXPENSES:
Line & transmission charges 5,475,699 3,241,970 983,204 608,061
Location commissions 3,467,626 782,187 615,527 -
Other operating expenses 5,310,262 338,071 709,281 -
Depreciation & amortization 4,383,049 6,076,711 451,929 91,174
Selling, general & administrative 3,200,742 1,012,644 479,083 471,854
Contractual settlements &
restructuring charges 2,169,503 - - -
----------------- ---------------- ----------------- ------------------
24,006,881 11,451,583 3,239,024 1,171,089
----------------- ---------------- ----------------- ------------------
(Loss) income from operations (5,288,898) (3,193,345) 121,572 23,532
Other income (expense) - (321,923) 733 916
Interest expense (781,808) (895,644) (149,248) -
Interest expense - accretion of debt (55,103) - - -
Interest income 16,112 4,205 - 666
----------------- ---------------- ----------------- ------------------
(Loss) income before income taxes
and extraordinary item (6,109,697) (4,406,707) (26,943) 25,114
Income taxes - - 35,800 2,300
----------------- ---------------- ----------------- ------------------
(LOSS) INCOME BEFORE
EXTRAORDINARY ITEM ($6,109,697) ($4,406,707) ($62,743) $22,814
================= ================ ================= ==================
Earnings per share calculation:
Preferred dividend payable in cash (309,668) (530,534) - -
Preferred dividend payable in kind - - - -
Redemption of 10%, 8%, and
7% Preferred - - - -
----------------- ---------------- ----------------- ------------------
(Loss) income before extraordinary
item applicable to
common shareholders ($6,419,365) ($4,937,241) ($62,743) $22,814
================= ================ ================= ==================
Loss per common share before
extraordinary item ($3.29)
=================
Weighted average number of shares 1,950,561 530,584 365,520 190,069
================= ================ ================= ==================
Pro Forma Pro Forma
Adjustments Adjustments
Paramount for for Debt Pro Forma
Communications Ref Acquisitions Ref Restructuring Combined
-------------------- ---- -------------------- ------- ------------- ----------------
REVENUES:
Coin calls and non-coin $5,675,468 - - $36,834,304
Other - - - 372,602
-------------------- -------------------- ------------- ----------------
5,675,468 - - 37,206,906
-------------------- -------------------- ------------- ----------------
OPERATING EXPENSES:
Line & transmission charges 1,543,956 - - 11,852,890
Location commissions 696,443 - - 5,561,783
Other operating expenses - - - 6,357,614
Depreciation & amortization 393,204 (4) $3,454,508 - 14,850,575
Selling, general & administrative 2,407,479 (4) (1,146,051) - 6,425,751
Contractual settlements &
restructuring charges - - - 2,169,503
-------------------- -------------------- ------------- ----------------
5,041,082 2,308,457 - 47,218,116
-------------------- -------------------- ------------- ----------------
(Loss) income from operations 634,386 (2,308,457) - (10,011,210)
Other income (expense) (85,231) - - (405,505)
Interest expense (64,210) - (5) ($3,462,527) (5,353,437)
Interest expense - accretion of debt - - (5) (1,923,450) (1,978,553)
Interest income 14,800 - - 35,783
-------------------- -------------------- ------------- ----------------
(Loss) income before income taxes
and extraordinary item 499,745 (2,308,457) (5,385,977) (17,712,922)
Income taxes - - - 38,100
-------------------- -------------------- ------------- ----------------
(LOSS) INCOME BEFORE
EXTRAORDINARY ITEM $499,745 ($2,308,457) ($5,385,977) ($17,751,022)
==================== ==================== ============= ================
Earnings per share calculation:
Preferred dividend payable in cash - - (5) 309,668 -
Preferred dividend payable in kind - - (5) (653,235) (653,235)
Redemption of 10%, 8%, and
7% Preferred - - (5) (2,002,386) (2,002,386)
-------------------- -------------------- ------------- ----------------
(Loss) income before extraordinary
item applicable to
common shareholders $499,745 ($2,308,457) ($7,731,930) ($20,406,643)
==================== ==================== ============= ================
Loss per common share before
extraordinary item ($6.72)
================
Weighted average number of shares 3,036,734
================
The accompanying notes are an integral part of these financial statements.
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