1
EXHIBIT (b) 3.
2
PHONETEL TECHNOLOGIES, INC. AND SUBSIDIARIES
UNAUDITED PRO FORMA COMBINED CONDENSED STATEMENT OF OPERATIONS FOR THE SIX
MONTHS ENDED JUNE 30, 1996
- -------------------------------------------------------------------------------
IPP and
Paramount
PhoneTel As Adjusted
Technologies (4) Amtel POA Ref
--------------- ---------------- ---------------- --------------- -------
Revenues $16,805,510 $2,488,680 $7,204,822 $3,768,225 (6)
Operating expenses:
Line and transmission charges 3,866,207 585,463 2,428,704 698,365
Location commissions 2,536,730 376,269 1,639,127 436,681
Other operating expenses 5,047,451 356,816 321,947 1,060,772 (5,6)
Depreciation and amortization 5,312,885 928,840 777,823 698,212 (5,6)
Selling, general and administrative 2,398,724 253,483 2,231,970 883,212 (5,6)
Contractual settlements and
other unusual charges 5,334,514 - - -
----------- --------- ----------- ----------
24,496,511 2,500,871 7,399,571 3,777,242
----------- --------- ----------- ----------
Loss from operations (7,691,001) (12,191) (194,749) (9,017)
Other income (expense):
Interest expense - related parties (1,816,890) - - - (7)
Interest expense - others (274,221) (30,881) (6,077) (333,230) (5,6)
Interest income 1,976 - 1,606 -
Reorganization expenses - - (789,888) - (5)
Other - (12,638) (959,011) (51,364) (5)
----------- --------- ----------- ----------
Total other income (expense) (2,089,135) (43,519) (1,753,370) (384,594)
----------- --------- ----------- ----------
Loss before income taxes
and extraordinary item (9,780,136) (55,710) (1,948,119) (393,611)
Income taxes - - 4,000 -
=========== ========= =========== ==========
Loss before extraordinary item ($9,780,136) ($55,710) ($1,952,119) ($393,611)
=========== ========= =========== ==========
Earnings per share calculation:
Preferred dividend requirement (134,741) - - -
----------- --------- ----------- ----------
Loss before extraordinary
item applicable to
common shareholders ($9,914,877) ($55,710) ($1,952,119) ($393,611)
=========== ========= =========== =========
Loss per common share before
extraordinary item (8) ($2.77)
===========
Weighted average number of shares 3,576,381 216,217 2,162,163 166,666
=========== ======== =========== =========
Pro Forma
Adjustments
for Pro Forma
Acquisitions As Adjusted
--------------- ----------------
Revenues ($27,625) $30,239,612
Operating expenses:
Line and transmission charges - 7,578,739
Location commissions - 4,988,807
Other operating expenses (206,786) 6,580,200
Depreciation and amortization 1,317,300 9,035,060
Selling, general and administrative (1,242,808) 4,524,581
Contractual settlements and
other unusual charges - 5,334,514
--------- ----------
(132,294) 38,041,901
--------- ----------
Loss from operations 104,669 (7,802,289)
Other income (expense):
Interest expense - related parties (581,446) (2,398,336)
Interest expense - others 51,414 (592,995)
Interest income - 3,582
Reorganization expenses 789,888 -
Other 959,011 (64,002)
--------- ----------
Total other income (expense) 1,218,867 (3,051,751)
--------- ----------
Loss before income taxes
and extraordinary item 1,323,536 (10,854,040)
Income taxes - 4,000
========== ============
Loss before extraordinary item $1,323,536 ($10,858,040)
========== ============
Earnings per share calculation:
Preferred dividend requirement - (134,741)
--------- ----------
Loss before extraordinary
item applicable to
common shareholders $1,323,536 ($10,992,781)
========== ============
Loss per common share before
extraordinary item (8) ($1.80)
============
Weighted average number of shares 6,121,427
============
The accompanying notes are an integral part of these financial statements.