EXHIBIT 99.1
FINANCIAL STATEMENTS
ATLANTIC TELCO JOINT VENTURE
BALANCE SHEETS
(UNAUDITED, IN THOUSANDS)
ASSETS 3/31/94 12/31/93
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Current assets:
Cash and cash equivalents. . . . . . . . . . . $ 887 $1,009
Accounts receivable, net of allowance for
doubtful accounts . . . . . . . . . . . . . . 315 339
Inventory. . . . . . . . . . . . . . . . . . . 375 373
Prepaid expenses and other current assets. . . 24 32
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Total current assets. . . . . . . . . . . . 1,601 1,753
Property and equipment, net . . . . . . . . . . . 4,474 4,594
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Total assets. . . . . . . . . . . . . . . . $6,075 $6,347
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LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities:
Accounts payable and accrued expenses. . . . . $ 807 $ 798
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Total current liabilities . . . . . . . . . 807 798
Notes payable and long term debt. . . . . . . . . 3,025 3,310
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Total liabilities . . . . . . . . . . . . . 3,832 4,108
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Commitments and contingencies . . . . . . . . . . - -
Shareholders' equity:
Capital. . . . . . . . . . . . . . . . . . . . 2,015 2,239
Retained earnings. . . . . . . . . . . . . . . 228 -
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Total shareholders' equity. . . . . . . . . 2,243 2,239
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Total liabilities and shareholders'
equity . . . . . . . . . . . . . . . . . . $6,075 $6,347
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The accompanying notes are an integral part of these financial statements.
ATLANTIC TELCO JOINT VENTURE
STATEMENTS OF INCOME
(UNAUDITED, IN THOUSANDS)
THREE MONTHS ENDED,
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3/31/94 3/31/93
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Revenues:
Coin calls . . . . . . . . . . . . . . . . . . . $1,951 $1,787
Non-coin calls . . . . . . . . . . . . . . . . . 464 498
Service and other. . . . . . . . . . . . . . . . 9 476
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Total revenues. . . . . . . . . . . . . . . . 2,424 2,761
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Costs and expenses:
Telephone charges. . . . . . . . . . . . . . . . 800 733
Commissions. . . . . . . . . . . . . . . . . . . 627 478
Field services and collection. . . . . . . . . . 187 183
Selling, general, and administrative . . . . . . 386 395
Depreciation and amortization. . . . . . . . . . 145 143
Interest . . . . . . . . . . . . . . . . . . . . 51 86
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Total costs and expenses. . . . . . . . . . . 2,196 2,018
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Income before taxes . . . . . . . . . . . . . . . 228 743
Provision for income taxes. . . . . . . . . . . . - -
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Net income. . . . . . . . . . . . . . . . . . . . $ 228 $ 743
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The accompanying notes are an integral part of these financial statements.
ATLANTIC TELCO JOINT VENTURE
STATEMENTS OF CASH FLOWS
(UNAUDITED, IN THOUSANDS)
THREE MONTHS ENDED
MARCH 31,
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1994 1993
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Cash flows from operating activities:
Net income. . . . . . . . . . . . . . . . . . . $ 228 $ 886
Adjustments to reconcile net income to net
cash provided by operating activities:
Income from cancellation of indebtedness . . . - (470)
Depreciation and amortization. . . . . . . . . 145 143
Deferred income taxes. . . . . . . . . . . . . (18) (16)
Changes in assets and liabilities:
Decrease (increase) in trade accounts
receivable. . . . . . . . . . . . . . . . . . 24 (7)
Increase in inventory. . . . . . . . . . . . . (2) -
Decrease (increase) in prepaid and
other assets. . . . . . . . . . . . . . . . . 8 (35)
Increase (decrease) in accounts payable and
accrued expenses. . . . . . . . . . . . . . . 26 (69)
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Net cash provided by operating activities . 411 432
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Cash flows from investing activities:
Purchase of property and equipment . . . . . (24) (330)
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Net cash used in investing activities . . . (24) (330)
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Cash flows from financing activities:
Distributions to partners. . . . . . . . . . . . (224) (500)
Payment of long-term notes to bank . . . . . . . (285) (515)
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Net cash used in financing activities . . . (509) (1,015)
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Decrease in cash and cash equivalents . . . . . . (123) (913)
Cash and cash equivalents, beginning of year. . . 1,009 1,629
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Cash and cash equivalents, end of year. . . . . . $ 887 $ 716
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The accompanying notes are an integral part of these financial statements.
ATLANTIC TELCO JOINT VENTURE
NOTES TO FINANCIAL STATEMENTS
MARCH 31, 1994 AND MARCH 31, 1993
(UNAUDITED)
NOTE 1 - UNAUDITED INTERIM INFORMATION:
The accompanying interim consolidated financial data is unaudited, however, in
the opinion of management, the interim data includes all adjustments, consisting
of only normal recurring adjustments, necessary for a fair statement of the
results for the interim periods.
The results of operations for the three months ended March 31, 1994 are not
necessarily indicative of the results to be expected for the year ending
December 31, 1994.
The interim unaudited financial statements should be read in conjunction with
the audited financial statements and notes thereto for the year ended December
31, 1994.
NOTE 2 - NOTES PAYABLE AND LONG-TERM DEBT:
During March 1993, the venture recorded a gain on the cancellation of
indebtedness of approximately $470,000. The venture repaid certain outstanding
debt balances prior to the original due date for a reduced principal amount.
The resulting gain is included in "service and other" revenues in the
accompanying statements of income.
NOTE 3 - SUBSEQUENT EVENTS:
In June 1994, the venture partners sold certain assets of the venture consisting
primarily of telephone equipment and the related location contracts for
approximately $11.5 million in cash to Peoples Telephone Company, Inc.