1
Exhibit (a) 4.
Payphones of America, Inc.
Consolidated Balance Sheets
Jun-95 Jun-96
ASSETS
Current Assets:
Cash ($169,071.69) ($170,709.08)
Accounts Receivable 339,498.44 372,557.99
Prepaid Expenses 499,311.96 39,245.11
Other Current Assets 91,139.99 40,210.91
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Total Current Assets 760,878.70 281,304.93
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Operating Equipment
Telecommunications equipment 3,848,670.36 3,924,343.66
Telephone Equipment held for installation 20,684.45 20,684.45
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3,869,354.81 3,945,028.11
Less accumulated depreciation and amortization (991,873.18) (1,533,605.18)
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Net Operating Equipment 2,877,481.63 2,411,422.93
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Leasehold improvements, equipment, furniture and fixtures
net of accumulated depreciation and amortization of
$118,347.19 and $180,991.76 respectively 167,422.68 30,706.63
Intangible Assets
Site contracts, net amortization 2,234,952.07 1,688,500.68
Non Compete Agreements, net amortization 362,083.35 197,083.33
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2,597,035.42 1,885,584.01
Other Assets 831,335.75 793,406.35
Total Assets $7,234,154.18 $5,402,424.85
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LIABILITIES
Current Liabilities
Accounts Payable $ 337,245.60 $ 84,690.23
Accrued Expenses 1,255,345.44 623,809.53
Current Maturities of long term debt and notes payable 63,003.28 50,458.91
0.00 0.00
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Total Current Liabilities 1,655,594.32 758,958.67
Deferred Revenue, less current maturities 0.00 (11,522.00)
Long-term debt, less current maturities
Notes payable and obligations under capital leases 6,141,313.57 5,380,965.03
Notes payable to stockholders 262,894.81 644,190.19
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Total Liabilities 8,059,802.70 6,772,591.89
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Stockholders Equity:
Common Stock 348,756.03 348,756.03
APIC (46,133.09) 0.00
Accumulated deficit(retained earnings) (1,128,271.46) (1,718,923.07)
Total Stockholders Equity (825,648.52) (1,370,167.04)
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$7,234,154.18 $5,402,424.85
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2
Payphones of America, Inc.
Unaudited Consolidated Income Statement
Jun-95 Jun-96
Revenues
Coin Calls $1,649,738.77 $1,516,505.67
Non Coin Calls 1,937,053.41 1,539,280.30
Other Revenue 13,786.67 712,438.98
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Total Revenues 3,600,578.85 3,768,224.95
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Cost of Revenues
Line Access Charges 866,025.91 698,365.13
Commissions 556,942.49 436,680.69
Service & Collections 777,406.11 1,060,772.30
Depreciation & Amortization 679,329.58 698,211.55
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Total Cost of Revenues 2,879,704.09 2,894,029.67
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Gross Profit 720,874.76 874,195.28
SGA Expenses 846,050.26 883,212.48
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Operating Income (loss) (125,175.50) (9,017.20)
Other Income (expenses)
Interest Expense (479,226.62) (333,229.92)
Gain/Loss of Sale of Assets 6,273.67 (55,474.76)
Other Income 4,192.64 4,110.74
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Total Other Income (expense) (468,760.31) (384,593.94)
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Income (loss) before taxes on Income (593,935.81) (393,611.14)
Taxes on Income 0.00 0.00
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Net Income ($ 593,935.81) ($ 393,611.14)
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