PhoneTel Technologies, Inc. Reports Financial Results for Twelve Months Ended December 31, 1999
CLEVELAND--(BUSINESS WIRE)--March 30, 2000--PhoneTel
Technologies, Inc. (OTCBB:PHTE) today reported financial results for
1999, which includes the period ended November 17, 1999, the date the
Company emerged from its Chapter 11 case, and the post reorganization
period ended December 31, 1999.
Revenues for the combined 1999 periods were $77.6 million, a
decline of $13.8 million, or 15.1%, from $91.4 million for the year
ended December 31, 1998. Revenues for the 1998 period included a
$3.7 million charge relating to prior years to recognize lower
dial-around compensation revenue resulting from the FCCs Third Report
and Order dated February 4, 1999. For the twelve months ended
December 31, 1999, EBITDA (earnings before interest, taxes,
depreciation and amortization, other unusual charges and contractual
settlements, and extraordinary items) was $5.5 million compared to
$1.9 million for the same period in 1998.
Net income of $37.6 million for the combined periods in 1999
includes an extraordinary gain of $77.2 million resulting primarily
from the conversion of the Company's $125 million Senior 12% Notes to
common stock as part of the Company's reorganization. The loss before
extraordinary item declined from $44.8 million in 1998 to
$39.6 million for the twelve months ended December 31, 1999, a
decrease of $5.2 million, or 11.6%. If the 1998 results had not
included the dial-around compensation revenue adjustment, the 1998
loss before extraordinary item would have been $41.1 million and
EBITDA would have been $5.6 million.
The Company had net income per common share of $2.08 and a loss
per share before extraordinary item of $2.03 for the period ended
November 17, 1999. The Company also had a net loss per common share of
$0.26 for the one month and thirteen day period ended
December 31, 1999 and a loss of $2.73 per share for the year ended
December 31, 1998. Such per share amounts are not comparable due to
the length of each period and the change in ownership and number of
shares outstanding following the Company's reorganization.
As previously announced, PhoneTel's prepackaged plan of
reorganization (the "Plan") was confirmed by the U.S. Bankruptcy Court
for the Southern District of New York and was consummated on
November 17, 1999 to complete the reorganization of the Company.
PhoneTel completed the refinancing of its $46 million secured debt
and, pursuant to the terms of the Plan, converted its Senior 12% Notes
into approximately 95% of the reorganized Company's common stock.
Former equity holders, including the former holders of PhoneTel's
mandatorily redeemable preferred stock, received the remaining 5% of
the new common stock.
PhoneTel Technologies, Inc. is a leading independent provider of
pay telephones and related services with operations in 45 states and
the District of Columbia. PhoneTel serves a wide array of customers
operating in the shopping center, hospitality, health care,
convenience store, university, service station, retail and restaurant
industries. |
