Davel Communications, Inc. Reports Financial Results for the Year Ended December 31, 2002.Business Editors CLEVELAND--(BUSINESS WIRE)--April 4, 2003 Davel Communications, Inc. (OTCBB OTCBB See OTC Bulletin Board (OTCBB). :DAVL DAVL Data Available-Low ) ("Davel" or "Company") today announced financial results for the year ended December December: see month. 31, 2002. The financial results include the results of PhoneTel Technologies, Inc. ("PhoneTel") since July July: see month. 24, 2002, the date on which the Company acquired PhoneTel. Total revenues were $77.0 million (including revenue for PhoneTel for the post July 24, 2002 period) compared to $90.6 million in the prior year. This decline reflects the continuing impact of wireless communications wireless communications System using radio-frequency, infrared, microwave, or other types of electromagnetic or acoustic waves in place of wires, cables, or fibre optics to transmit signals or data. on payphone payphone Noun a coin-operated telephone payphone pay n → Münztelefon nt; (card phone) → Kartentelefon nt usage as well as a reduction in revenue of $3.8 million relating to relating to relate prep → concernant relating to relate prep → bezüglich +gen, mit Bezug auf +acc an industry-wide true up of "dial-around" revenues received from certain long-distance long-dis·tance adj. 1. Covering a long distance: a long-distance runner; operating under long-distance supervision. 2. carriers in prior years. The average number of installed pay telephones during 2002 reflects the additional phones derived from PhoneTel as of the acquisition date offset by the Company's continued strategic removal of low margin phones. The Company's operating loss operating loss The excess of operating expenses over revenue. As with operating income, operating losses exclude revenues and expenses from operations that are not considered a regular part of the business. Also called deficit. Compare operating income. increased from $16.0 million in 2001 to $16.4 million in 2002 which includes $2.9 million of merger-related costs associated with the closing of its redundant headquarters facility in Tampa, FL and related personnel severance The act of dividing, or the state of being divided. The term severance has unique meanings in different branches of the law. Courts use the term in both civil and criminal litigation in two ways: first, when dividing a lawsuit into two or more parts, and second, when cost. Such losses were offset in part by reductions in telephone charges of $7.8 million in 2002 and $2.4 million in 2001 resulting from refunds received from Local Exchange Carriers under the FCC's "New Services Test". Excluding the dial-around adjustment, New Services Test refunds and the costs of closing the Tampa corporate headquarters, the Company's operating loss would have been $1.7 million, or 8.9% lower than last year. The net income for the year was $151.8 million, or $0.56 per common share, compared to a net loss of $43.4 million, or $3.89 per common share, in 2001. The 2002 net income includes a non-cash gain of $181.0 million relating to the Company's debt-for-equity exchange immediately prior to the PhoneTel merger in which the Company exchanged approximately $219 million of indebtedness INDEBTEDNESS. The state, of being in debt, without regard to the ability or inability of the party to pay the same. See 1 Story, Eq. 343; 2 Hill. Ab. 421. 2. for approximately 380.6 million shares of common stock. Following the debt-for-equity exchange and the PhoneTel merger, the Company had approximately 615.0 million shares of common stock outstanding. Founded in 1979, Davel is the largest independent provider of pay telephones and related services in the United States United States, officially United States of America, republic (2005 est. pop. 295,734,000), 3,539,227 sq mi (9,166,598 sq km), North America. The United States is the world's third largest country in population and the fourth largest country in area. with operations in 48 states and the District of Columbia District of Columbia, federal district (2000 pop. 572,059, a 5.7% decrease in population since the 1990 census), 69 sq mi (179 sq km), on the east bank of the Potomac River, coextensive with the city of Washington, D.C. (the capital of the United States). . Davel serves a wide array of customers operating principally in the shopping center shopping center, a concentration of retail, service, and entertainment enterprises designed to serve the surrounding region. The modern shopping center differs from its antecedents—bazaars and marketplaces—in that the shops are usually amalgamated into , hospitality, health care, convenience store, university, service station, retail and restaurant industries. Forward-Looking Statements forward-looking statement A projected financial statement based on management expectations. A forward-looking statement involves risks with regard to the accuracy of assumptions underlying the projections. Certain of the statements contained herein may be, within the meaning of the federal securities laws, "forward-looking statements" that are subject to risks and uncertainties that could cause actual results to differ materially from those described in the forward-looking statements. Such forward-looking statements involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of the Company to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements. See the Company's Form 10-K Form 10-K A report required by the SEC from exchange-listed companies that provides for annual disclosure of certain financial information. Form 10-K See 10-K. for the year ended December 31, 2002 for a discussion of such risks, uncertainties, and other factors. These forward-looking statements are based on management's expectations as of the date hereof here·of adv. Of this. hereof Adverb Formal or law of or concerning this Adv. 1. hereof - of or concerning this; "the twigs hereof are physic" , and the Company does not undertake any responsibility to update any of these statements in the future.
DAVEL COMMUNICATIONS, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS
(In thousands except for share and per share amounts)
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Year Ended
December 31
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2002 2001
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Revenues
Coin calls $56,952 $61,668
Non-coin calls 20,000 28,950
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Total revenues 76,952 90,618
Costs and expenses
Telephone charges 19,350 29,577
Commissions 15,767 22,168
Service, maintenance and network costs 22,998 23,519
Depreciation and amortization 20,392 19,241
Selling, general and administrative 11,959 12,115
Exit and disposal activities 2,919 -
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Total operating costs and expenses 93,385 106,620
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Operating loss (16,433) (16,002)
Interest expense (net) (13,037) (27,672)
Gain on debt extinguishment 180,977 -
Other income (expense) 244 260
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Net income (loss) $151,751 $(43,414)
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Basic and diluted earnings (loss) per share $0.56 ($3.89)
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Weighted average shares outstanding 272,598,189 11,169,485
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CONSOLIDATED BALANCE SHEETS
(In thousands)
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December 31
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2002 2001
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Assets
Total current assets $26,947 $17,719
Property and equipment 41,855 47,448
Location contracts, net 18,043 1,983
Goodwill 17,455 -
Other assets 2,316 1,175
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Total assets $106,616 $68,325
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Liabilities and shareholders' deficit
Total current liabilities $44,697 $297,830
Long-term liabilities 118,229 308
Shareholders' deficit (56,310) (229,813)
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Total liabilities and shareholders' deficit $106,616 $68,325
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