EXHIBIT 99.2
PEOPLES TELEPHONE COMPANY, INC.
AND
ATLANTIC TELCO JOINT VENTURE
COMBINED PRO FORMA FINANCIAL STATEMENTS
(UNAUDITED)
PEOPLES TELEPHONE COMPANY, INC.
PRO FORMA FINANCIAL STATEMENTS
The following unaudited pro forma financial statements give effect to the
acquisition by Peoples Telephone Company, Inc. of Atlantic Telco Joint Venture
in a transaction to be accounted for as a purchase. The unaudited pro forma
balance sheet is based upon the individual balance sheets of Peoples Telephone
Company, Inc. and Atlantic Telco Joint Venture as of March 31, 1994. The
unaudited pro forma statements of income are based upon the individual
statements of income of Peoples Telephone Company, Inc. and Atlantic Telco Joint
Venture and combines the results of operations of Peoples Telephone Company,
Inc. and Atlantic Telco Joint Venture (acquired by Peoples Telephone Company,
Inc. as of June 23, 1994) for the three months ended March 31, 1994 and the year
ended December 31, 1993 as if the acquisitions occurred on January 1, 1994 and
1993, respectively.
PEOPLES TELEPHONE COMPANY, INC.
PRO FORMA COMBINED BALANCE SHEETS
MARCH 31, 1994
(UNAUDITED, IN THOUSANDS)
Peoples Telephone Atlantic Telco Pro Forma
Assets Company, Inc. Joint Venture Adjustments Pro Forma
----------------- -------------- ----------- ---------
Current assets:
Cash and cash equivalents . . . . . . . $ 1,211 $ 887 $ (887)(b) $ 1,211
Accounts receivable, net of allowance
for doubtful accounts. . . . . . . . . 23,071 315 (315)(b) 23,071
Inventory . . . . . . . . . . . . . . . 5,137 375 (18)(c) 5,494
Prepaid expenses and other
current assets. . . . . . . . . . . . . 4,657 24 (24)(b) 4,657
----------- ---------- --------- --------
Total current assets. . . . . . . . . . 34,076 1,601 (1,244) 34,433
Property and equipment, net. . . . . . . 90,257 4,474 (1,106)(c) 93,625
Location contracts, net. . . . . . . . . 27,063 - 2,250 (c) 29,313
Goodwill, net. . . . . . . . . . . . . . 12,105 - 5,525 (d) 17,630
Other assets, net. . . . . . . . . . . . 19,181 - - 19,181
----------- ---------- --------- --------
Total assets . . . . . . . . . . . . . $ 182,682 $ 6,075 $ 5,425 $194,182
=========== ========== ========= ========
Liabilities and Shareholders' Equity
Current liabilities:
Accounts payable and accrued expenses . $ 16,951 807 (307)(b) $ 17,451
Other current liabilities . . . . . . . 6,623 - - 6,623
----------- ---------- --------- --------
Total current liabilities. . . . . . . 23,574 807 (307)(b) 24,074
Notes payable and long term debt . . . . 84,415 3,025 7,975 (a) 95,415
Other long term liabilities. . . . . . . 5,740 - - 5,740
----------- ---------- --------- --------
Total liabilities. . . . . . . . . . . 113,729 3,832 7,668 125,229
----------- ---------- --------- --------
Shareholders' equity:
Atlantic Telco's equity . . . . . . . . - 2,243 (2,243)(e) -
Common stock. . . . . . . . . . . . . . 158 - - 158
Capital in excess of par value. . . . . 59,057 - - 59,057
Retained earnings . . . . . . . . . . . 9,738 - - 9,738
----------- ---------- --------- --------
Total shareholders' equity . . . . . . 68,953 2,2436 (2,243) 68,953
----------- ---------- --------- --------
Total liabilities and shareholders'
equity. . . . . . . . . . . . . . . . $ 182,682 $ 6,075 $ 5,425 $194,182
=========== ========== ========= ========
<FN>
- --------------
NOTE 1 - The pro forma balance sheet has been prepared to reflect the
acquisition of Atlantic Telco Joint Venture by Peoples Telephone Company,
Inc. for an aggregate price of $11.5 million. Pro forma adjustments are
made to reflect the following:
(a) The draw down of $11 million from the line of credit combined with the
elimination of $3 million in debt not acquired.
(b) The elimination of assets and liabilities not acquired.
(c) The net asset of Atlantic Telco Joint Venture at estimate fair value at
the acquisition date.
(d) The excess of acquisition cost over the fair value of net assets
acquired (goodwill); and
(e) The elimination of Atlantic Telco Joint Venture's equity.
</FN>
PEOPLES TELEPHONE COMPANY, INC.
PRO FORMA CONSOLIDATED STATEMENTS OF INCOME
THREE MONTHS ENDED MARCH 31, 1994
(UNAUDITED, IN THOUSANDS EXCEPT PER SHARE DATA)
Peoples Telephone Atlantic Telco Pro Forma
Company, Inc. Joint Venture Adjustments Pro Forma
----------------- -------------- ----------- ---------
Revenues:
Coin calls $ 17,857 $ 1,951 - $19,808
Non-coin call 20,141 464 - 20,605
Gain on sale of assets 2,015 - - 2,015
Service and other 1,415 9 - 1,424
----------- ---------- --------- -------
Total revenues 41,428 2,424 - 43,852
----------- ---------- --------- -------
Costs and expenses:
Telephone charges 16,390 800 - 17,190
Commissions 6,855 627 - 7,482
Filed services and collection 6,055 186 - 6,241
Depreciation and amortization 5,429 145 76 (a) 5,650
Selling, general, and administrative 3,685 387 - 4,072
Interest 1,525 51 142 (b) 1,718
----------- ---------- --------- -------
Total costs and expenses 39,939 2,196 218 42,353
----------- ---------- --------- -------
Income before taxes 1,489 228 (218) 1,499
Provision for income taxes (558) - (4)(c) (562)
----------- ---------- --------- -------
Net income $ 931 $ 228 $ (222) $ 937
=========== ========== ========= =======
Earnings per common and common
equivalent share $ 0.06 $ 0.06
=========== =======
Earnings per common assuming full
dilution $ 0.06 $ 0.06
=========== =======
number of shares - Primary 16,425 16,425
=========== =======
number of shares - Fully Diluted 16,425 16,425
=========== =======
<FN>
NOTE 1 - The above statement has been prepared to reflect the acquisition of
Atlantic Telco Joint Venture by Peoples Telephone Company, Inc. for an aggregate
price of $11.5 million. Pro forma adjustments are made to reflect the
following:
(a) Additional depreciation and amortization from increased basis of equipment
and location contracts acquired based on estimated useful lives of 10
years and 8 years, respectively, and the amortization of goodwill on a
straight line basis over 20 years.
(b) Additional interest charges on the $11 million drawn from Peoples
Telephone Company, Inc.'s line of credit.
(c) Increase in income taxes relating to the foregoing adjustments.
</FN>
PEOPLES TELEPHONE COMPANY, INC.
PRO FORMA CONSOLIDATED STATEMENTS OF INCOME
YEAR ENDED DECEMBER 31, 1993
(UNAUDITED, IN THOUSANDS EXCEPT PER SHARE DATA)
Peoples Telephone Atlantic Telco Pro Forma
Company, Inc. Joint Venture Adjustments Pro Forma
----------------- -------------- ----------- ---------
Revenues:
Coin calls. . . . . . . . . . . . $ 56,607 $ 8,313 - $ 64,920
Non-coin calls. . . . . . . . . . 63,286 2,411 - 65,697
Service and other . . . . . . . . 1,924 470 - 2,394
----------- --------- --------- --------
Total revenues . . . . . . . . . 121,817 11,194 - 133,011
----------- --------- --------- --------
Costs and expenses:
Telephone charges . . . . . . . . 40,907 3,357 - 44,264
Commissions . . . . . . . . . . . 25,074 2,541 - 27,615
Field services and collection . . 16,628 877 - 17,505
Depreciation and amortization . . 16,109 571 315 (a) 16,995
Selling, general, and
administrative . . . . . . . . . 11,708 1,802 - 13,510
Interest. . . . . . . . . . . . . 3,345 281 434 (b) 4,060
----------- --------- --------- --------
Total costs and expenses . . . . 113,771 9,429 749 123,949
----------- --------- --------- --------
Income before taxes. . . . . . . . 8,046 1,765 (749) 9,062
Provision for income taxes . . . . (3,031) (10) (373)(c) (3,414)
Minority interest, net . . . . . . 327 - - 327
----------- --------- --------- --------
Net income . . . . . . . . . . . . $ 5,342 $ 1,755 $ (1,122) $ 5,975
=========== ========= ========= ========
Earnings per common and common
equivalent share. . . . . . . . . $ 0.37 $ 0.41
=========== ========
Earnings per common assuming full
dilution. . . . . . . . . . . . . $ 0.37 $ 0.41
=========== ========
number of shares - Primary . . . . 14,479 14,479
=========== ========
number of shares - Fully Diluted . 14,517 14,517
=========== ========
<FN>
NOTE 1 - The above statement has been prepared to reflect the acquisition of
Atlantic Telco Joint Venture by peoples Telephone Company, Inc. for an aggregate
price of $11.5 million. Pro forma adjustments are made to reflect the
following:
(a) Additional annual depreciation and amortization from increased basis of
equipment and location contracts acquired based on estimated useful lives
of 10 years and 8 years, respectively, and the amortization of goodwill
on a straight line basis over 20 years.
(b) Additional annual interest charges on the $11 million drawn from Peoples
Telephone Company, Inc.'s line of credit.
(c) Increase in income taxes relating to the foregoing adjustments.
</FN>