FORM 10Q PERIOD ENDED: 09/30/96
SEC RCVD DATE: 11/05/96
ISSUER: CAI WIRELESS SYSTEMS INC.
SYMBOL: CAWS
CAI WIRELESS SYSTEMS, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
SEPTEMBER 30 MARCH 31,
1996 1996
(UNAUDITED) *
--------------------------
ASSETS
Cash and cash equivalents $ 45,483,937 $103,263,094
Subscriber accounts receivable, less
allowance for bad debts of $1,085,000
for September and $1,296,000 for March 1,276,633 1,432,674
Prepaid expenses 625,795 698,482
Property and equipment, net 71,565,759 52,568,619
Wireless channel rights, net 203,292,785 205,973,840
Investment in CS Wireless Systems, Inc 105,525,153 113,054,069
Debt service escrow 62,940,778 77,621,088
Goodwill 126,762,356 131,282,996
Loan acquisition costs, net 9,838,309 10,631,263
Other assets 3,679,401 2,268,847
Total Assets $630,990,906 $698,794,972
LIABILITIES AND SHAREHOLDERS' EQUITY
Liabilities
Accounts payable $ 9,688,020 $ 8,244,577
Accrued expenses 12,395,825 10,186,37
Senior debt 275,000,000 275,000,000
Notes payable 37,160,004 43,434,667
Wireless channel rights obligations 21,332,611 41,025,866
Deferred income taxes 26,410,000 35,410,000
381,986,460 413,301,484
Commitments
Mandatorily Redeemable Preferred Stock
14% Senior convertible preferred stock
(liquidation value $70,000,000) 69,090,004 69,020,002
Series A 8% redeemable convertible
preferred stock (liquidation value
$577,500) 577,500 18,050,000
Accrued preferred stock dividends 12,001,374 5,812,562
Shareholders' Equity
Preferred stock - -
Common stock, shares issued and
outstanding
March 31, 1996 - 37,829,482
September 30, 1996 - 40,384,787 275,191,915 257,701,130
Accumulated deficit (107,856,347) (65,090,206)
167,335,568 192,610,924
Total Liabilities and Shareholders'
Equity $630,990,906 $698,794,972
CAI WIRELESS SYSTEMS, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(UNAUDITED)
SIX-MONTHS
PERIOD ENDED
----------------------------------
SEPTEMBER 30, SEPTEMBER 30,
1996 1995
----------------------------------
REVENUES $ 18,487,778 $ 7,891,508
Costs and expenses
Programming and license 7,859,550 3,463,916
Marketing 1,226,017 1,764,780
General and
administrative 14,340,890 9,171,468
Depreciation and
amortization 16,550,788 5,589,886
39,977,245 19,990,050
Operating loss (21,489,467) (12,098,542)
Other income (expense)
Equity in net loss of
affiliate (7,800,000) -
Interest income 4,039,174 329,453
Other income 77,397 41,504
Interest expense (20,304,553) (3,808,507)
(23,987,982) (3,437,550)
Loss before provision
for income tax
benefit and minority
interest (45,477,449) (15,536,092)
Provision for income tax
benefit 9,000,000 -
Loss before minority
interest (36,477,449) (15,536,092)
Minority interest in loss - 321,910
Net loss (36,477,449) (15,214,182)
Preferred stock dividend (6,270,364) (743,265)
Loss applicable to
common stock
shareholders $(42,747,813) $(15,957,447)
Loss per common share $ (1.08) $ (0.98)
Average common and
equivalent shares
outstanding 39,638,851 16,321,674
CAI WIRELESS SYSTEMS, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(UNAUDITED)
THREE-MONTHS
PERIOD ENDED
----------------------------------
SEPTEMBER 30, SEPTEMBER 30,
1996 1995
----------------------------------
REVENUES $ 9,182,955 $ 3,899,641
Costs and expenses
Programming and license 3,966,954 1,799,011
Marketing 651,412 718,777
General and
administrative 7,427,376 4,527,393
Depreciation and
amortization 8,455,561 2,980,961
20,501,303 10,026,142
Operating loss (11,318,348) (6,126,501)
Other income (expense)
Equity in net loss of
affiliate (4,800,000) -
Interest income 1,867,110 241,141
Other income 37,943 3,558
Interest expense (10,143,719) (1,868,229)
Loss before provision
for income tax (13,038,666) (1,623,530)
benefit and minority
interest (24,357,014) (7,750,031)
Provision for income tax
benefit 4,500,000 -
Loss before minority
interest (19,857,014) (7,750,031)
Minority interest in loss - 42,164
Net loss (19,857,014) (7,707,867)
Preferred stock dividend (3,194,747) (390,816)
Loss applicable to
common stock
shareholders $ (23,051,761) $(8,098,683)
Loss per common share (0.57) $ (0.48)
Average common and
equivalent shares
outstanding 40,384,787 16,725,006
CAI WIRELESS SYSTEMS, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(UNAUDITED)
SIX-MONTHS
PERIOD ENDED
-------------------------------------
SEPTEMBER 30, SEPTEMBER 30,
1996 1995
-------------------------------------
CASH FLOWS FROM OPERATING
ACTIVITIES
Net loss $ (36,477,449) $ (15,214,182)
Adjustments to reconcile net
loss to net cash used in
operating activities
Depreciation and amortization 16,550,788 5,589,886
Equity in net loss of
affiliate 7,800,000 -
Deferred income tax benefit (9,000,000) -
Amortization of loan costs Continued... |
