Attached files
| file | filename |
|---|---|
| 8-K - FORM 8-K - INNOVATE Corp. | d575363d8k.htm |
| EX-99.1 - EXHIBIT 99.1 - INNOVATE Corp. | d575363dex991.htm |
| EX-10.1 - EXHIBIT 10.1 - INNOVATE Corp. | d575363dex101.htm |
Exhibit 99.2
PRIMUS TELECOMMUNICATIONS GROUP, INCORPORATED
UNAUDITED PRO FORMA CONSOLIDATED FINANCIAL INFORMATION
On July 31, 2013, PTGi, PTHI, Primus Telecommunications International, Inc. and Lingo Holdings, Inc., direct or indirect wholly owned subsidiaries of PTGi, completed the sale of all of the outstanding equity of each of Lingo, Inc. (“Lingo”), iPrimus, USA, Inc. (“iPrimus”), 3620212 Canada Inc. (“Primus Canada”), PTCI, Telesonic Communications Inc. (“Telesonic”), and Globility Communications Corporation (“Globility”, and together with Lingo, iPrimus, Primus Canada, PTCI and Telesonic, the “Companies”), indirect or direct wholly owned subsidiaries of PTGi, to PTUS, Inc. and PTCAN, Inc., affiliates of York Capital Management, an investment firm, for approximately US$126 million (the “Transaction”). Prior to the disposition, the Companies conducted PTGi’s retail telecommunications operations in the United States and Canada. Such operations represented 87.1% of PTGi’s net revenue for the year ended December 31, 2012.
The sale of all of the outstanding equity of Primus Telecommunications, Inc. to US Acquireco for approximately $3 million will be completed at a later date once required regulatory approvals for the sale have been obtained.
The following unaudited pro forma consolidated financial information is presented to illustrate the effect of the Company’s disposition of BLACKIRON Data (on April 17, 2013) and North America Telecom on its historical financial position and operating results. The unaudited pro forma condensed consolidated balance sheet as of March 31, 2013 is based on the historical statements of the Company as of March 31, 2013 after giving effect to the transactions as if the dispositions had occurred on March 31, 2013. The unaudited pro forma condensed consolidated statements of operations for the three months ended March 31, 2013 and 2012 and years ended December 31, 2012, 2011 and 2010 are based on the historical financial statements of the Company after giving effect to the transactions as if the dispositions had occurred on January 1, 2010. The unaudited pro forma consolidated financial information should be read in conjunction with the Company’s historical consolidated financial statements and notes thereto contained in the Company’s 2012 Annual Report on Form 10–K, filed on March 14, 2013 and March 31, 2013 Quarterly Report on Form 10-Q, filed on May 10, 2013.
The preparation of the unaudited pro forma consolidated financial information is based on financial statements prepared in accordance with accounting principles generally accepted in the United States of America. These principles require the use of estimates that affect the reported amounts of assets, liabilities, revenues and expenses. Actual results could differ from those estimates.
The unaudited pro forma consolidated financial information is provided for illustrative purposes only and does not purport to represent what the actual results of operations would have been had the transaction occurred on the respective date assumed, nor is it necessarily indicative of the Company’s future operating results. However, the pro forma adjustments reflected in the accompanying unaudited pro forma consolidated financial information reflect estimates and assumptions that the Company’s management believes to be reasonable.
PRIMUS TELECOMMUNICATIONS GROUP, INCORPORATED
UNAUDITED PRO FORMA CONDENSED CONSOLIDATED BALANCE SHEET
| As Reported March 31, |
Pro Forma Adjustments | Pro Forma March 31, |
||||||||||||||||||||
| Standalone BLACKIRON Data |
Standalone North America Telecom |
Other | ||||||||||||||||||||
| 2013 | Operations (a) | Operations (b) | Adjustments | 2013 | ||||||||||||||||||
| ASSETS |
||||||||||||||||||||||
| CURRENT ASSETS: |
||||||||||||||||||||||
| Cash and cash equivalents |
$ | 13,844 | $ | (327 | ) | $
|
(3,755 (917 |
) ) (c) |
$
|
169,250 112,138 (132,672 |
) |
(d) (e) (k) |
$ | 157,561 | ||||||||
| Accounts receivable, prepaid expenses and other current assets |
23,937 | (2,790 | ) | (20,360 | ) | — | 787 | |||||||||||||||
| Assets held for sale |
39,284 | — | — | — | 39,284 | |||||||||||||||||
|
|
|
|
|
|
|
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|
|
|
|||||||||||||
| Total current assets |
77,065 | (3,117 | ) | (25,032 | ) | 148,716 | 197,632 | |||||||||||||||
| RESTRICTED CASH |
832 | (74 | ) | (758 | ) | — | — | |||||||||||||||
| PROPERTY AND EQUIPMENT –Net |
66,198 | (33,750 | ) | (31,763 | ) | — | 685 | |||||||||||||||
| GOODWILL |
60,085 | (20,187 | ) | (13,225 | ) | (26,673 | ) | (f) | — | |||||||||||||
| OTHER INTANGIBLE ASSETS –Net |
60,265 | (4,392 | ) | (28,873 | ) | (27,000 | ) | (g) | — | |||||||||||||
| OTHER ASSETS |
23,343 | — |
|
(881 (28 |
) ) (c) |
|
19,556 15,250 (20,976 |
) |
(h) (i) (k) |
36,264 | ||||||||||||
|
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|
|
|
|
|
|
|
|
|
|||||||||||||
| TOTAL ASSETS |
$ | 287,788 | $ | (61,520 | ) | $ | (100,560 | ) | $ | 108,873 | $ | 234,581 | ||||||||||
|
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|
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|
|||||||||||||
| LIABILITIES AND STOCKHOLDERS’ EQUITY |
||||||||||||||||||||||
| CURRENT LIABILITIES: |
||||||||||||||||||||||
| Accounts payable, accrued interconnection costs, accrued expenses and other current liabilities |
$ | 30,872 | $ | (8,054 | ) | $ | (20,446 | ) | $ | — | $ | 2,372 | ||||||||||
| Deferred revenue |
8,293 | (544 | ) | (7,749 | ) | — | — | |||||||||||||||
| Accrued income taxes |
7,701 | — | (3,464 | ) | (3,628 | ) | (j) | 609 | ||||||||||||||
| Accrued interest |
4,926 | — | (31 | ) (c) | (4,895 | ) | (k) | — | ||||||||||||||
| Current portion of long-term obligations |
54 | (29 | ) | (25 | ) | — | — | |||||||||||||||
| Liabilities held for sale |
18,840 | — | — | — | 18,840 | |||||||||||||||||
|
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|
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|
|||||||||||||
| Total current liabilities |
70,686 | (8,627 | ) | (31,715 | ) | (8,523 | ) | 21,821 | ||||||||||||||
| LONG-TERM OBLIGATIONS |
127,069 | (26 | ) | (824 | ) (c) | (126,219 | ) | (k) | — | |||||||||||||
| CONTINGENT VALUE RIGHTS |
14,792 | — | — | (14,792 | ) | (l) | — | |||||||||||||||
| OTHER LIABILITIES |
12,142 | — | (1,215 | ) | (10,503 | ) | (g) | 424 | ||||||||||||||
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|
|||||||||||||
| Total liabilities |
224,689 | (8,653 | ) | (33,754 | ) | (160,037 | ) | 22,245 | ||||||||||||||
| COMMITMENTS AND CONTINGENCIES |
||||||||||||||||||||||
| STOCKHOLDERS’ EQUITY: |
||||||||||||||||||||||
| Preferred stock |
— | — | — | — | — | |||||||||||||||||
| Common stock |
14 | — | — | — | 14 | |||||||||||||||||
| Additional paid-in capital |
98,662 | — | — | — | 98,662 | |||||||||||||||||
| Accumulated deficit |
(26,410 | ) | (52,867 | ) |
|
(66,716 (90 |
) ) (c) |
|
169,250 112,138 (26,673 (16,497 19,556 15,250 3,628 (22,534 14,792 |
) )
)
|
(d) (e) (f) (g) (h) (i) (j) (k) (l) |
122,827 | ||||||||||
| Treasury stock, at cost |
(378 | ) | — | — | — | (378 | ) | |||||||||||||||
| Accumulated other comprehensive loss |
(8,789 | ) | — | — | — | (8,789 | ) | |||||||||||||||
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|||||||||||||
| Total stockholders’ equity |
63,099 | (52,867 | ) | (66,806 | ) | 268,910 | 212,336 | |||||||||||||||
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|||||||||||||
| TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY |
$ | 287,788 | $ | (61,520 | ) | $ | (100,560 | ) | $ | 108,873 | $ | 234,581 | ||||||||||
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See accompanying notes to unaudited pro forma condensed consolidated financial statements.
PRIMUS TELECOMMUNICATIONS GROUP, INCORPORATED
UNAUDITED PRO FORMA CONDENSED CONSOLIDATED STATEMENT OF OPERATIONS
| As Reported Three Months Ended March 31, 2013 |
Pro Forma Adjustments | Other Adjustments (o) |
Pro Forma Three Months Ended March 31, 2013 |
|||||||||||||||||
| Standalone BLACKIRON Data Operations (m) |
Standalone North America Telecom Operations (n) |
|||||||||||||||||||
| NET REVENUE |
$ | 60,883 | $ | (9,633 | ) | $ | (51,250 | ) | $ | — | $ | — | ||||||||
| OPERATING EXPENSES |
||||||||||||||||||||
| Cost of revenue (exclusive of depreciation included below) |
29,470 | (4,438 | ) | (25,032 | ) | — | — | |||||||||||||
| Selling, general and administrative |
22,575 | (2,227 | ) | (15,903 | ) | — | 4,445 | |||||||||||||
| Depreciation and amortization |
6,600 | (1,667 | ) | (4,932 | ) | — | 1 | |||||||||||||
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|||||||||||
| Total operating expenses |
58,645 | (8,332 | ) | (45,867 | ) | — | 4,446 | |||||||||||||
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| INCOME (LOSS) FROM OPERATIONS |
2,238 | (1,301 | ) | (5,383 | ) | — | (4,446 | ) | ||||||||||||
| INTEREST EXPENSE |
(4,216 | ) | 1 | 81 | — | (4,134 | ) | |||||||||||||
| ACCRETION (AMORTIZATION) ON DEBT PREMIUM/DISCOUNT, net |
(32 | ) | — | — | — | (32 | ) | |||||||||||||
| GAIN (LOSS) ON EARLY EXTINGUISHMENT OR RESTRUCTURING OF DEBT |
— | — | — | — | — | |||||||||||||||
| GAIN (LOSS) FROM CONTINGENT VALUE RIGHTS VALUATION |
112 | — | — | — | 112 | |||||||||||||||
| INTEREST INCOME AND OTHER INCOME (EXPENSE), net |
18 | (1 | ) | (18 | ) | — | (1 | ) | ||||||||||||
| FOREIGN CURRENCY TRANSACTION GAIN (LOSS) |
1 | — | 77 | (174 | ) | (96 | ) | |||||||||||||
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| INCOME (LOSS) FROM CONTINUING OPERATIONS BEFORE INCOME TAXES |
(1,879 | ) | (1,301 | ) | (5,243 | ) | (174 | ) | (8,597 | ) | ||||||||||
| INCOME TAX BENEFIT (EXPENSE) |
(50 | ) | (168 | ) | 107 | — | (111 | ) | ||||||||||||
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| INCOME (LOSS) FROM CONTINUING OPERATIONS |
(1,929 | ) | (1,469 | ) | (5,136 | ) | (174 | ) | (8,708 | ) | ||||||||||
| Less: Net (income) loss attributable to the noncontrolling interest |
— | — | — | — | — | |||||||||||||||
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| INCOME (LOSS) FROM CONTINUING OPERATIONS ATTRIBUTABLE TO COMMON SHAREHOLDERS OF PRIMUS TELECOMMUNICATIONS GROUP, INCORPORATED |
$ | (1,929 | ) | $ | (1,469 | ) | $ | (5,136 | ) | $ | (174 | ) | $ | (8,708 | ) | |||||
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| BASIC INCOME (LOSS) PER COMMON SHARE: |
||||||||||||||||||||
| Income (loss) from continuing operations attributable to Primus Telecommunications Group, Incorporated |
$ | (0.14 | ) | $ | (0.63 | ) | ||||||||||||||
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| DILUTED INCOME (LOSS) PER COMMON SHARE: |
||||||||||||||||||||
| Income (loss) from continuing operations attributable to Primus Telecommunications Group, Incorporated |
$ | (0.14 | ) | $ | (0.63 | ) | ||||||||||||||
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| WEIGHTED AVERAGE COMMON SHARES OUTSTANDING |
||||||||||||||||||||
| Basic |
13,909 | 13,909 | ||||||||||||||||||
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|
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| Diluted |
13,909 | 13,909 | ||||||||||||||||||
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|
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See accompanying notes to unaudited pro forma condensed consolidated financial statements.
PRIMUS TELECOMMUNICATIONS GROUP, INCORPORATED
UNAUDITED PRO FORMA CONDENSED CONSOLIDATED STATEMENT OF OPERATIONS
| As Reported Three Months Ended March 31, 2012 |
Pro Forma Adjustments | Other Adjustments (o) |
Pro Forma Three Months Ended March 31, 2012 |
|||||||||||||||||
| Standalone BLACKIRON Data Operations (m) |
Standalone North America Telecom Operations (n) |
|||||||||||||||||||
| NET REVENUE |
$ | 68,002 | $ | (8,197 | ) | $ | (59,805 | ) | $ | — | $ | — | ||||||||
| OPERATING EXPENSES |
||||||||||||||||||||
| Cost of revenue (exclusive of depreciation included below) |
33,505 | (3,377 | ) | (30,128 | ) | — | — | |||||||||||||
| Selling, general and administrative |
27,156 | (1,310 | ) | (19,056 | ) | — | 6,790 | |||||||||||||
| Depreciation and amortization |
7,597 | (2,180 | ) | (5,416 | ) | — | 1 | |||||||||||||
| (Gain) loss on sale or disposal of assets |
43 | — | — | — | 43 | |||||||||||||||
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|||||||||||
| Total operating expenses |
68,301 | (6,867 | ) | (54,600 | ) | — | 6,834 | |||||||||||||
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|||||||||||
| INCOME (LOSS) FROM OPERATIONS |
(299 | ) | (1,330 | ) | (5,205 | ) | — | (6,834 | ) | |||||||||||
| INTEREST EXPENSE |
(6,879 | ) | — | 62 | — | (6,817 | ) | |||||||||||||
| ACCRETION (AMORTIZATION) ON DEBT PREMIUM/DISCOUNT, net |
(57 | ) | — | — | — | (57 | ) | |||||||||||||
| GAIN (LOSS) FROM CONTINGENT VALUE RIGHTS VALUATION |
(7,190 | ) | — | — | — | (7,190 | ) | |||||||||||||
| INTEREST INCOME AND OTHER INCOME (EXPENSE), net |
4 | — | (2 | ) | — | 2 | ||||||||||||||
| FOREIGN CURRENCY TRANSACTION GAIN (LOSS) |
1,951 | — | (71 | ) | (1,882 | ) | (2 | ) | ||||||||||||
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| INCOME (LOSS) FROM CONTINUING OPERATIONS BEFORE INCOME TAXES |
(12,470 | ) | (1,330 | ) | (5,216 | ) | (1,882 | ) | (20,898 | ) | ||||||||||
| INCOME TAX BENEFIT (EXPENSE) |
1,106 | — | (1,352 | ) | — | (246 | ) | |||||||||||||
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|||||||||||
| INCOME (LOSS) FROM CONTINUING OPERATIONS |
(11,364 | ) | (1,330 | ) | (6,568 | ) | (1,882 | ) | (21,144 | ) | ||||||||||
| Less: Net (income) loss attributable to the noncontrolling interest |
(106 | ) | — | 106 | — | — | ||||||||||||||
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| INCOME (LOSS) FROM CONTINUING OPERATIONS ATTRIBUTABLE TO COMMON SHAREHOLDERS OF PRIMUS TELECOMMUNICATIONS GROUP, INCORPORATED |
$ | (11,470 | ) | $ | (1,330 | ) | $ | (6,462 | ) | $ | (1,882 | ) | $ | (21,144 | ) | |||||
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| BASIC INCOME (LOSS) PER COMMON SHARE: |
||||||||||||||||||||
| Income (loss) from continuing operations attributable to Primus Telecommunications Group, Incorporated |
$ | (0.84 | ) | $ | (1.54 | ) | ||||||||||||||
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| DILUTED INCOME (LOSS) PER COMMON SHARE: |
||||||||||||||||||||
| Income (loss) from continuing operations attributable to Primus Telecommunications Group, Incorporated |
$ | (0.84 | ) | $ | (1.54 | ) | ||||||||||||||
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| WEIGHTED AVERAGE COMMON SHARES OUTSTANDING |
||||||||||||||||||||
| Basic |
13,744 | 13,744 | ||||||||||||||||||
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|
|||||||||||||||||
| Diluted |
13,744 | 13,744 | ||||||||||||||||||
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See accompanying notes to unaudited pro forma condensed consolidated financial statements.
PRIMUS TELECOMMUNICATIONS GROUP, INCORPORATED
UNAUDITED PRO FORMA CONDENSED CONSOLIDATED STATEMENT OF OPERATIONS
| As Reported Year Ended |
Pro Forma Adjustments | Pro Forma Year Ended |
||||||||||||||||||
| Standalone BLACKIRON Data |
Standalone North America Telecom |
Other | ||||||||||||||||||
| December 31, 2012 | Operations (m) | Operations (n) | Adjustments (o) | December 31, 2012 | ||||||||||||||||
| NET REVENUE |
$ | 260,554 | $ | (33,734 | ) | $ | (226,820 | ) | $ | — | $ | — | ||||||||
| OPERATING EXPENSES |
||||||||||||||||||||
| Cost of revenue (exclusive of depreciation included below) |
125,263 | (14,980 | ) | (110,283 | ) | — | — | |||||||||||||
| Selling, general and administrative |
102,760 | (5,742 | ) | (72,353 | ) | — | 24,665 | |||||||||||||
| Depreciation and amortization |
31,023 | (6,675 | ) | (24,345 | ) | — | 3 | |||||||||||||
| (Gain) loss on sale or disposal of assets |
171 | — | (130 | ) | — | 41 | ||||||||||||||
| Asset impairment expense |
10,000 | — | — | — | 10,000 | |||||||||||||||
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|||||||||||
| Total operating expenses |
269,217 | (27,397 | ) | (207,111 | ) | — | 34,709 | |||||||||||||
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|||||||||||
| INCOME (LOSS) FROM OPERATIONS |
(8,663 | ) | (6,337 | ) | (19,709 | ) | — | (34,709 | ) | |||||||||||
| INTEREST EXPENSE |
(23,934 | ) | — | 185 | — | (23,749 | ) | |||||||||||||
| ACCRETION (AMORTIZATION) ON DEBT PREMIUM/DISCOUNT, net |
(201 | ) | — | 2 | — | (199 | ) | |||||||||||||
| GAIN (LOSS) ON EARLY EXTINGUISHMENT OR RESTRUCTURING OF DEBT |
(21,682 | ) | — | — | — | (21,682 | ) | |||||||||||||
| GAIN (LOSS) FROM CONTINGENT VALUE RIGHTS VALUATION |
1,292 | — | — | — | 1,292 | |||||||||||||||
| INTEREST INCOME AND OTHER INCOME (EXPENSE), net |
86 | — | 76 | — | 162 | |||||||||||||||
| FOREIGN CURRENCY TRANSACTION GAIN (LOSS) |
2,739 | — | (41 | ) | (2,393 | ) | 305 | |||||||||||||
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|||||||||||
| INCOME (LOSS) FROM CONTINUING OPERATIONS BEFORE INCOME TAXES |
(50,363 | ) | (6,337 | ) | (19,487 | ) | (2,393 | ) | (78,580 | ) | ||||||||||
| INCOME TAX BENEFIT (EXPENSE) |
4,518 | — | (1,386 | ) | — | 3,132 | ||||||||||||||
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|||||||||||
| INCOME (LOSS) FROM CONTINUING OPERATIONS |
(45,845 | ) | (6,337 | ) | (20,873 | ) | (2,393 | ) | (75,448 | ) | ||||||||||
| Less: Net (income) loss attributable to the noncontrolling interest |
18 | — | (18 | ) | — | — | ||||||||||||||
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|||||||||||
| INCOME (LOSS) FROM CONTINUING OPERATIONS ATTRIBUTABLE TO COMMON SHAREHOLDERS OF PRIMUS TELECOMMUNICATIONS GROUP, INCORPORATED |
$ | (45,827 | ) | $ | (6,337 | ) | $ | (20,891 | ) | $ | (2,393 | ) | $ | (75,448 | ) | |||||
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|||||||||||
| BASIC INCOME (LOSS) PER COMMON SHARE: |
||||||||||||||||||||
| Income (loss) from continuing operations attributable to Primus Telecommunications Group, Incorporated |
$ | (3.31 | ) | $ | (5.45 | ) | ||||||||||||||
|
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|
|
|
|||||||||||||||||
| DILUTED INCOME (LOSS) PER COMMON SHARE: |
||||||||||||||||||||
| Income (loss) from continuing operations attributable to Primus Telecommunications Group, Incorporated |
$ | (3.31 | ) | $ | (5.45 | ) | ||||||||||||||
|
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|
|
|
|||||||||||||||||
| WEIGHTED AVERAGE COMMON SHARES OUTSTANDING |
||||||||||||||||||||
| Basic |
13,844 | 13,844 | ||||||||||||||||||
|
|
|
|
|
|||||||||||||||||
| Diluted |
13,844 | 13,844 | ||||||||||||||||||
|
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|
|
|
|||||||||||||||||
See accompanying notes to unaudited pro forma condensed consolidated financial statements.
PRIMUS TELECOMMUNICATIONS GROUP, INCORPORATED
UNAUDITED PRO FORMA CONDENSED CONSOLIDATED STATEMENT OF OPERATIONS
| As Reported Year Ended |
Pro Forma Adjustments | Pro Forma Year Ended |
||||||||||||||||||
| Standalone BLACKIRON Data |
Standalone North America Telecom |
Other | ||||||||||||||||||
| December 31, 2011 | Operations (m) | Operations (n) | Adjustments (o) | December 31, 2011 | ||||||||||||||||
| NET REVENUE |
$ | 291,386 | $ | (30,791 | ) | $ | (260,023 | ) | $ | — | $ | 572 | ||||||||
| OPERATING EXPENSES |
||||||||||||||||||||
| Cost of revenue (exclusive of depreciation included below) |
143,347 | (12,823 | ) | (130,524 | ) | — | — | |||||||||||||
| Selling, general and administrative |
110,711 | (5,526 | ) | (84,161 | ) | — | 21,024 | |||||||||||||
| Depreciation and amortization |
35,371 | (5,955 | ) | (29,401 | ) | — | 15 | |||||||||||||
| (Gain) loss on sale or disposal of assets |
(12,948 | ) | — | 13,105 | — | 157 | ||||||||||||||
| Asset impairment expense |
— | — | — | — | — | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
| Total operating expenses |
276,481 | (24,304 | ) | (230,981 | ) | — | 21,196 | |||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
| INCOME (LOSS) FROM OPERATIONS |
14,905 | (6,487 | ) | (29,042 | ) | — | (20,624 | ) | ||||||||||||
| INTEREST EXPENSE |
(30,811 | ) | — | 3,609 | — | (27,202 | ) | |||||||||||||
| ACCRETION (AMORTIZATION) ON DEBT PREMIUM/DISCOUNT, net |
(213 | ) | — | 38 | — | (175 | ) | |||||||||||||
| GAIN (LOSS) ON EARLY EXTINGUISHMENT OR RESTRUCTURING OF DEBT |
(7,346 | ) | — | — | — | (7,346 | ) | |||||||||||||
| GAIN (LOSS) FROM CONTINGENT VALUE RIGHTS VALUATION |
2,902 | — | — | — | 2,902 | |||||||||||||||
| INTEREST INCOME AND OTHER INCOME (EXPENSE), net |
1,265 | — | 834 | — | 2,099 | |||||||||||||||
| FOREIGN CURRENCY TRANSACTION GAIN (LOSS) |
(2,426 | ) | — | (1,454 | ) | 3,221 | (659 | ) | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
| INCOME (LOSS) FROM CONTINUING OPERATIONS BEFORE INCOME TAXES |
(21,724 | ) | (6,487 | ) | (26,015 | ) | 3,221 | (51,005 | ) | |||||||||||
| INCOME TAX BENEFIT (EXPENSE) |
(1,282 | ) | — | 216 | — | (1,066 | ) | |||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
| INCOME (LOSS) FROM CONTINUING OPERATIONS |
(23,006 | ) | (6,487 | ) | (25,799 | ) | 3,221 | (52,071 | ) | |||||||||||
| Less: Net (income) loss attributable to the noncontrolling interest |
(5,461 | ) | — | 5,461 | — | — | ||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
| INCOME (LOSS) FROM CONTINUING OPERATIONS ATTRIBUTABLE TO COMMON SHAREHOLDERS OF PRIMUS TELECOMMUNICATIONS GROUP, INCORPORATED |
$ | (28,467 | ) | $ | (6,487 | ) | $ | (20,338 | ) | $ | 3,221 | $ | (52,071 | ) | ||||||
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
| BASIC INCOME (LOSS) PER COMMON SHARE: |
||||||||||||||||||||
| Income (loss) from continuing operations attributable to Primus Telecommunications Group, Incorporated |
$ | (2.19 | ) | $ | (4.01 | ) | ||||||||||||||
|
|
|
|
|
|||||||||||||||||
| DILUTED INCOME (LOSS) PER COMMON SHARE: |
||||||||||||||||||||
| Income (loss) from continuing operations attributable to Primus Telecommunications Group, Incorporated |
$ | (2.19 | ) | $ | (4.01 | ) | ||||||||||||||
|
|
|
|
|
|||||||||||||||||
| WEIGHTED AVERAGE COMMON SHARES OUTSTANDING |
||||||||||||||||||||
| Basic |
12,994 | 12,994 | ||||||||||||||||||
|
|
|
|
|
|||||||||||||||||
| Diluted |
12,994 | 12,994 | ||||||||||||||||||
|
|
|
|
|
|||||||||||||||||
See accompanying notes to unaudited pro forma condensed consolidated financial statements.
PRIMUS TELECOMMUNICATIONS GROUP, INCORPORATED
UNAUDITED PRO FORMA CONDENSED CONSOLIDATED STATEMENT OF OPERATIONS
| As Reported Year Ended |
Pro Forma Adjustments | Pro Forma Year Ended |
||||||||||||||||||
| Standalone BLACKIRON Data |
Standalone North America Telecom |
Other | ||||||||||||||||||
| December 31, 2010 | Operations (m) | Operations (n) | Adjustments (o) | December 31, 2010 | ||||||||||||||||
| NET REVENUE |
$ | 282,017 | $ | (27,068 | ) | $ | (254,841 | ) | $ | — | $ | 108 | ||||||||
| OPERATING EXPENSES |
||||||||||||||||||||
| Cost of revenue (exclusive of depreciation included below) |
134,892 | (11,457 | ) | (123,435 | ) | — | — | |||||||||||||
| Selling, general and administrative |
113,008 | (4,997 | ) | (88,838 | ) | — | 19,173 | |||||||||||||
| Depreciation and amortization |
40,177 | (5,710 | ) | (34,484 | ) | — | (17 | ) | ||||||||||||
| (Gain) loss on sale or disposal of assets |
(196 | ) | — | 196 | — | — | ||||||||||||||
| Asset impairment expense |
— | — | — | — | — | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
| Total operating expenses |
287,881 | (22,164 | ) | (246,561 | ) | — | 19,156 | |||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
| INCOME (LOSS) FROM OPERATIONS |
(5,864 | ) | (4,904 | ) | (8,280 | ) | — | (19,048 | ) | |||||||||||
| INTEREST EXPENSE |
(35,331 | ) | — | 7,003 | — | (28,328 | ) | |||||||||||||
| ACCRETION (AMORTIZATION) ON DEBT PREMIUM/DISCOUNT, net |
(183 | ) | — | 65 | — | (118 | ) | |||||||||||||
| GAIN (LOSS) ON EARLY EXTINGUISHMENT OR RESTRUCTURING OF DEBT |
164 | — | (72 | ) | — | 92 | ||||||||||||||
| GAIN (LOSS) FROM CONTINGENT VALUE RIGHTS VALUATION |
(13,737 | ) | — | — | — | (13,737 | ) | |||||||||||||
| INTEREST INCOME AND OTHER INCOME (EXPENSE), net |
(167 | ) | — | (69 | ) | — | (236 | ) | ||||||||||||
| FOREIGN CURRENCY TRANSACTION GAIN (LOSS) |
6,570 | — | (2,362 | ) | (1,493 | ) | 2,715 | |||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
| INCOME (LOSS) FROM CONTINUING OPERATIONS BEFORE REORGANIZATION ITEMS AND INCOME TAXES |
(48,548 | ) | (4,904 | ) | (3,715 | ) | (1,493 | ) | (58,660 | ) | ||||||||||
| REORGANIZATION ITEMS, net |
1 | — | — | — | 1 | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
| INCOME (LOSS) FROM CONTINUING OPERATIONS BEFORE INCOME TAXES |
(48,547 | ) | (4,904 | ) | (3,715 | ) | (1,493 | ) | (58,659 | ) | ||||||||||
| INCOME TAX BENEFIT (EXPENSE) |
6,515 | — | (7,559 | ) | — | (1,044 | ) | |||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
| INCOME (LOSS) FROM CONTINUING OPERATIONS |
(42,032 | ) | (4,904 | ) | (11,274 | ) | (1,493 | ) | (59,703 | ) | ||||||||||
| Less: Net (income) loss attributable to the noncontrolling interest |
105 | — | (105 | ) | — | — | ||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
| INCOME (LOSS) FROM CONTINUING OPERATIONS ATTRIBUTABLE TO COMMON SHAREHOLDERS OF PRIMUS TELECOMMUNICATIONS GROUP, INCORPORATED |
$ | (41,927 | ) | $ | (4,904 | ) | $ | (11,379 | ) | $ | (1,493 | ) | $ | (59,703 | ) | |||||
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
| BASIC INCOME (LOSS) PER COMMON SHARE: |
||||||||||||||||||||
| Income (loss) from continuing operations attributable to Primus Telecommunications Group, Incorporated |
$ | (4.31 | ) | $ | (6.14 | ) | ||||||||||||||
|
|
|
|
|
|||||||||||||||||
| DILUTED INCOME (LOSS) PER COMMON SHARE: |
||||||||||||||||||||
| Income (loss) from continuing operations attributable to Primus Telecommunications Group, Incorporated |
$ | (4.31 | ) | $ | (6.14 | ) | ||||||||||||||
|
|
|
|
|
|||||||||||||||||
| WEIGHTED AVERAGE COMMON SHARES OUTSTANDING |
||||||||||||||||||||
| Basic |
9,721 | 9,721 | ||||||||||||||||||
|
|
|
|
|
|||||||||||||||||
| Diluted |
9,721 | 9,721 | ||||||||||||||||||
|
|
|
|
|
|||||||||||||||||
See accompanying notes to unaudited pro forma condensed consolidated financial statements.
PRIMUS TELECOMMUNICATIONS GROUP, INCORPORATED
NOTES TO UNAUDITED PRO FORMA CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
Pro Forma Adjustments
The unaudited pro forma condensed consolidated balance sheet as of March 31, 2013 includes the following adjustments:
| (a) | To reflect the disposition of BLACKIRON Data’s specified balance sheet accounts as of March 31, 2013. |
| (b) | To reflect the disposition of North America Telecom’s specified balance sheet accounts as of March 31, 2013. |
| (c) | To reflect the repurchase of the Company’s 13% Senior Secured Notes due 2016 held by North America Telecom. The amount includes the outstanding principal balance, prepayment premium and accrued interest as of March 31, 2013. In addition, the unamortized deferred financing costs in Other Assets and unamortized debt discount within Long-term Obligations are written off. |
| (d) | To reflect the cash received from Rogers Communications Inc. for the sale of BLACKIRON Data, net of transaction costs directly related to the sale and amounts deposited into escrow. |
| (e) | To reflect the cash received from York Capital Management for the sale of North America Telecom, net of transaction costs directly related to the sale and amounts deposited into escrow. |
| (f) | To reflect the impairment of the remaining carrying value of goodwill of the US reporting unit. The fair value of goodwill is measured by the operations of the US retail portion of the North America Telecom operating segment. |
| (g) | To reflect the sale of the Company’s trade names attributable to North America Telecom, net of deferred taxes, to York Capital Management. |
| (h) | To reflect the amount of proceeds deposited into escrow and recognition of a gain on the BLACKIRON Data sale. |
| (i) | To reflect the amount of proceeds deposited into escrow and recognition of a gain on the North America Telecom sale. |
| (j) | To reflect the removal of accrued withholding taxes recorded by the parent on royalty fees due from North America Telecom. The parent is not liable for these taxes as the intercompany balances will not be settled in cash. |
| (k) | To reflect the repurchase of the Company’s 10% Senior Secured Notes due 2017, 10% Senior Secured Exchange Notes due 2017 and 13% Senior Secured Notes due 2016 held by its corporate entities. The amount includes the outstanding principal balance; prepayment premium, if applicable; and accrued interest as of March 31, 2013. In addition, the unamortized deferred financing costs in Other Assets and unamortized debt discount within Long-term Obligations are written off. |
| (l) | To reflect the expiration of the Contingent Value Rights. |
The unaudited pro forma condensed consolidated statements of operations for the three months ended March 31, 2013 and 2012 and years ended December 31, 2012, 2011 and 2010 include the following adjustments:
| (m) | To reflect the removal of the operating results of BLACKIRON Data as if the transaction occurred on January 1, 2010. |
| (n) | To reflect the removal of the operating results of North America Telecom as if the transaction occurred on January 1, 2010. |
| (o) | To reflect the removal of foreign exchange gains and losses on intercompany balances with North America Telecom that had been recorded at the parent level. |