tc97-051 - south dakota public utilities commissioncation for registllation of group long distance,...
TRANSCRIPT
In thrM1nuof IN THE MATTER OF TttE APPLICATION OF GLD. GROUP LONG DISTANCE, INC. FOR A CERTIFICATE OF AUTHORITY TO PROVIDE TELECOMMUNICATIONS SERVICES IN SOUTH DAKOTA
TC97-051 l>tK 1,.1 . I ~II.
Public Ut ilities C'onuni.-.sion of tlw S ta le of South 0:1k11ta
t" II ,,, , ... ~, .. ,.,
Aoo Adnunal ,n Now Yurl and Moryt.nd
YIA FEDERAL EXPRESS Mr . Will iam Bullard Executive Dir ec tor
Lance J.M. Steinhart Attorney Al Low
6-lSS E,.-t foh11> C""<ini Sullc 'l.&S
Dullllh. 0-.•• l(HSS
Hay 5, 1997
South Oakot Public Utilities coinmlssion 500 East Capitol Avenue Pierro, SD 57501-5070 1(605) 77)- 3201
Re : c~o. Croup Long Distance, I nc .
Dear Hr . Bul lar d:
TC97-05 1
T<lq,h<_ , (770) 132,9200 Faatnult: (nO) 212•9208
RECEIVED
~t.1 IS\!1
SOUl h 11M A IJBLIC UTILITIES COMMISSION
Enclosed please find one original and ten (10) copies of CLO, Croup Long Distance, I nc . •s Application for Regist r ation of a Telecommunications Company.
Ple ase note that Exhibit A, the Certif icate of Autho ity fr om ~he Sec retary o( State, is not attached. We have applied for the cer ti f icate a nd will forward a copy t o tho commission upon receipt.
In order to expedite the processing of t his application, 1 wou ld like to suggest that all r equests for i nformation by the a nalyst be made by either telephone or f acsimile. l wi ll make every e ffort to respond on tho day o f t he r equest.
I have also enclosed a check in the amount of $2 50 .00 payable t:o the "South Dakota Public Utilities Commission" for the filing fee, and an extra copy ot this cover letter to be date stamped and returned to me in the enclosed self- addressed prepa i d envelope.
If you have any questions or i f I may prov ide you with any additional 1nformation, please do not hesitate to contact me .
Enclosures cc : Mr. Sao ttitner WS/afs
Respectfully submitted,
La~nhart
Attorney for CLO, Croup Long Uistance , 'Inc.
APPL~CATION FOR REGISTllATION OF GROUP LONG DISTANCE, INC.
TC97-051
FILED WITll THE SOUTH DAKOTA PUBLIC UTILITIES COMMISSI ON
RECEIVED
"'AY • 1> 1997 sour~ Al'Q U'T1Lrr,Es COMr A .-JBLIC
MISSION
ltl THE HA'M'ER Or THE .APPLICATION Or GLD, GROUP LONG DISTANCE, l tlC.
FOR AN ORDER authorizing the registration of applicant as a telecommunications company
APPLIC!IITION
Docket No·~~~~~
Application is hereby made t o the South Dakota Public
Utilities Col!ll!l ission for an Order authorizing GLD, Group Long
Distance, Inc . ( "Applicant") to register a s a telecommunicat ions
company with in the State of south Dakota. The following
in! orJDation Is fu rnished in suppo.rt thereof :
1. HM•• Address and Telephone H'l!mber of ~pplic1U1..t
GLD, Group Long Distance, Inc. 1451 W~s t c ypress Creek Road, Suite 200 rort Lauderdale , rlor ida 3JJ09 (305) 771-9696
All i nqu ir ies r egarding complaints and regulatory matters should be addressed to:
Lance J .M . Steinhar t, Esq . 6455 East Johns crossing, Suite 28S Duluth, Georgia 30155 (770) 232- 9200
1
2 . B•qhtered Aatnt
are : The name and address of the Applic ar.~•s reg ister ed agent
Ronald D. Olinger 117 East capital Pierre, South Dakota 57501
l . Pt•cription ot the Applicant
Appl .i cant was incc-rporated in Plorida on April 21 , 1996 with
perpetual dura t ion . Applica11t Is a wholly- owned subsidiary of
Croup Long Distance, Inc., a Plorida corporation, the stock of
wh ich is traded on the UASDAQ national exchange . Applicant ' s
parent company has been i n the tel ecommunications industry since
1989 . Applicant bas appl ied for author ity t o transac t business
as a foreign corpor ;.tion in the Stat·e of South Dakota and wi ll
file a copy of lt8 Certificate of Authority a s Exhibit A upon
receipt . A copy o! the Applicant ' s Art icles of I ncorporation is
attached as Exhibit B hereto.
•• t•cilities
Applicant doe-. not o~n or maintai n any transmission
facilities or s wit<: hing equipment in the State of South Dakota .
The Applicant will provide services through AT&T and/or LOOS
Worldcom, i t s underlying carriers .
2
s . stockholder, The na=es and addresses ot the stockholders o f Applicant are
as follows:
!lame and Address Shares owned
Croup Long Distance, Inc . 1, 000 1451 West Cypress Creek Road Su1te 200 Fort Lauderdale, Florida 3330 9
,. 2t,1cers and Directors
Percentage of all Shares Issued and o utstanding and Voting Control
100\
The names and addresses of ~he officer& and directors of
Applicant arc as follows:
Gerald K. Dunno , Jr., President/Director 14 51 West cypress c reek Road Suite 200 For t Lauderdale, FL 33309
Peter H. Russo, Treasurer 14 51 West Cypress creek Road Suite 200 Fort Lauderdale, FL 33309
Sam D. Hitner, Secretary 1451 West Cypress Creek Road suite 200 Fort Lauderdale, FL 33309
1. corporate Q!!n1r1hip The namo and address o f any corporation, assoc11tion or
similar organization holding a (Ive percent (5\ ) or greater
ownership In tho Applicant is as follows:
Gr oup Long Distance, rnc. 100\
a. su~o idiari•r ovned or controlled by Applicant tlone
3
, . Pt1cription of s, rvict• Applicant is a switchless reseller which intends to offer 1+
direc t dioiLng, 800 toll free, travel card , and prepaid ca ll i ng
ca rd service through the resale of telephone services provided by
racllities-based interexchange carriers. As a s wi t chless
rese ller, Appl i cant has no ~lnts of presence ln the St ate of
south Dakota, thus Applicant neithe r owns . leases. nor orerates
any switching . transnission . or other physical facilities in the
state of south oatotn . and oo such fa c ilitles will be used by
Applicant in prov iding service im the state or south Dakota~
Rather, App Ucant will be engaged in rese 11 i ng services provided
by facil ities-based carriers within the State o! South Dakota .
Upon receiving cer ti [ication, Applicant intends to provide
interexchange services throughout the s tate o! South Dakota.
Applicant intends t o provide these services to customers on
a jurisdic tionally interstate basis suoject to the FCC ' s
jurisdict ion and Applicant a nd/or i t s parent company i,n:·e nd t o
provide these services on jurisdictionally intrastate busis
pursuant to certification, r egistration or tariff requirements,
or on an unregulated basis, i n all fifty states, subjec t to the
jurisdiction of var ious public service and utilities commissions .
Applicant· s parent company is currently au tho~-ii:ed t o provide
service in 46 states.
4
Applicant intends t o provide high quality service, with an
jndustr y standard bloc, i ng rate less than P.01 . lt.s services
wili be availabl e on a full-time basis, t.wenty-four hours a day,
seven days a week, t o customers ~!thin the geographic boundaries
of the State o f South Dakota.
10. Financial oualirications Applicant is financially qualified to provide lntrastate
interexchangc telecommunications services with i n South Dakota.
In particular, Appli cant has adequate access to the capital
necessary to fulfill any obl igations i t Day undertake with
respec t to the provi sion ot Intrastate telecommunications
services in the State of South Dakot a . See Exhibit C which is
attached hereto, Applicant's parent company's Financial
Statements for the year ended December 31 , 1996 .
11. Tuitt
A copy of Applican~ ' s proposed tariff ls attached as Exhlblt
D hereto.
5
Wll~EPCR! , the unde r signed Applicant r equest s that the South
Dakota Public Ut i l i t i e s Commission enter an o rder granting t h is
app li cat l <'"
DATED t his . <;(' da y of yYp O . 1997 .
By: GLD, ~ Diatanca, Inc .
Lance J .M. Steinhart
Its Attorney 6•55 Eaat Johna Duluth, Georgia (770) 232-9200
6
c roaaing, Ruite 285 30155
~ 11:09 G.L.D. • 778 2.~ 9209
COCIWZt o, &aonAD
C:•rald H. Dunne, :rr., beinq tla-ot duly avorn, depo••• •nd aaya tjiat ho ia the Pre•1aent or CLO, croup i.ong Distance, Inc., the Appl1e&nt in tho proeee41"'J •nt1tle4 abovo , that ho hoe read the toregoir19 application and k:nowa th• contents thereof; that tho •aa• are tnia of b i • Jcnovled90 , •xo•.-t aa to 11att•~• Vhicb ar • therein atatad on illtoraation or k>el1•t, and to thoae IMttera he boliw•• ,._ '° .. """· ){,__~
Glr&ldK. nn• Jr .
and nvorn to be:tora ~1• ..5_ day ot ~·
LIST OF EXHIBIT"
A CERTIFICATE OF AUTHORITY
B ARTICLES OP INCORPORATION
C FI5lUICIAL STATEMENTS
D PROPOSED TARIPP
8
EXHIBIT JI CERTIFICATE OP J\UTKORITY
9
EX.lll BIT B ARTI CLES OP INCORPOR1'TI0H
10
04/2!YJ? 15: 13 G. L. D. • 71'0 232 9200
l,partm,nt of &tat,
I certify 111e anached is a true and correct copy ot the Articles of lncorporatioo ol GLD, GROUP LONG DISTANCE. INC., a Florida corporation. filed on April 22. 1997 effective Apnl 21, 1997, as shown by the records ol this office.
The document number ol rh,s corporarion 1s P970000360 1 1 •
• (6inr~, u11i)rr m ll..l!'rni) 111~i) rl!r O<irr.,t ..St:ol of th~,.::,,1111, .,r jf,Jurii'lu.
"' irnllnltn••rr. i11r <!!upilol . il!i" ll1r Twenry-second llny of April. 1997
~,£~ .:§m,i:m, i!l. ~ urtlmm
~ ~·,·r·rt,;1-u of ~1.J1 h:
G.L.0. - "'"'/0 ::?2 S200
ARTICLES Of INCORPORATION
GLD. CROUP LONG prsTAHC:C, INC
The u.odcraign•d, acting •• inc:orporacor ot a corporation for
profit. W\der the J'lorida General Corporation Act, ados. ;a the
t o lloving - Artic:lee of L"lcorporation tor euc:b corporatio.n.
ARTICLI! J:
The n-o of the corporat!cn is GLD. GROUP LONG OI STANCE:, UIC .
ARTICLE Ir
PQM.IIQH
The period o f durlltion o! the corporac.ion i• por.iacual .
Corporate existence ahall ccmme:-;cc on t h e d,1te thcac Article• are
exec ut ed a.nd a clcnowledgod, except that i f they are not tiled by the
Oep,u·t.11>enc of S tate of the St.> ta of Pl!.or id& wi thiA f ive ( !> ) d a1ya ,
exclualv• o f legal holiday9 , after they aro executed .:ind acknowl
edged, c:orporace cxletenc:e •hal l c:oaimenc:e upon filing by the
Dapar1t.menc of Stace.
ARTICLE: III
P1ZR"QS£s
Th• p u rpoae f or wbLc:b the coq,orat!on ii organ1:ed l.O to
t ranoacc &J'ly a nd a l.l l.owful bua1n,rno , and to engag e in any
15: I J 0.L.O. , 710 Z!2 92138
acc.ivicy witbin th• p\.lrpo•• for which c:orporacJ.ona m.ay be organJ.rod
under the Flo rida Gene ral Corpo ration Acc .
ARTICLE IV
(a) Aus;;hprhod Capt ca~ :
•to~k WhJ.ch Chi• c o rporation i a autbor1:ed to havo outotillldi ng at - --a.ny one t ~·::ie ia ONE l'HOO'S>.Nl) (1,000) ab.Area of c~ •toe.It having
a par value ot one dollar ($1 .. 00) per •bare.
Cb) Pr1tG1Ps;;iy1 8ight4 . Sbarehold•ra •hall have no
preempti ve r i ghca .
! c J CW1Julaeiy2 Voting. Cu:aul~tivc v9ciag •hall no t he
pentlctod .
ART1:CLE V
INITIAL PRINCIPAL OPFICE INITIAL B,:cISTiJlsp QPPICE Nfi> AQQU
The o treec addzeoo of the initial principal o t ficc of the
corpo ration i" J4~ W. Cyprcu Creek. Ro2d, Suire #200 Fr. Lauderdale, FL JJJ-09 .
The &treat addres• of the initial regiatared office lo 22SO S. W.
3rd Ave ., Third Floor, Kiaai , F'L 33129, and tho name o f t he
initial regi stered ag-c ot the corporation ia Manuel A. Avila ,
Baq .
2
~ 15:t.i G.L.D. • 770 2l2 9208
ARTICLE' VI
BY · L.l,Ws
The ini t ial by · lawe ot t h i • corporation ehall be adopt ed by
the d i r cc:tore . By- lowe may be adopted, altered , amended or
repealed t r0111 tillle t o tiae by either tJa.e eharehcldere or the Board
o f Diractc;u-• . but th, Board of Di rector• •hall no t alter, amend, or ...
repeal any By-lawe adopt ed by tha ahll reboldero i t t he eharebolderc
11pe c:i tic:a:ly p rovide that euch 8y- lawa ehall not be a ltered,
a.:nend~d or repealed by tbo Board of D1rec tore .
ARTICLE VII
PJaz:qogs
The initial Board of Diroctoro ahal l c:onaiat of~ me.mbor,
who needo not b e a reeident o t the S tate ot Florida o r ebareho l der
ot ::he corporation.
The n.a.1H and addro••• c! t:he pereon who ehal l e orve as
director until the tiret AAAual mee ting of oh.lreholdore , o r until
thei r aucceeaora eb.a.11 have been elected and quali fied, ia ae
f cllowa :
02RJU.D H. OtnlNlt, JR .
ADDIU'!SS
14Sl W, Cypru, Crce.k Road, S 11 ite #200
Ft. LJuderdalt, FL J3Jo,
)
15: 1.1 G.L. D. ~ 770 232 92lil8
UTJl:CLE vnr
INCQS:PQ&ATQRS
Th• name and addr eee o ! the initial i ncorpor, tor 1e •• t ollowa :
NAME: NLtluo l A. Avila , &aquiro
-- -..
ADDR&SS
2250 S. W. 3rd Avenue Third Floor Mi ami, P'L 3 3129
AJI.TICt E rx
RI.CRT TQ N1WP
The ccrporetioa re•erv·e11 the right to &111and or repeal Lily
provieione ccnt•ined in the•o Artie!•• o! Incorpora tion, and any
right conferred upOJ:1 tho • ha reboldcra i• sub j ect t o thi11 reeo:-va
tioa .
IN WITNESS ~OF, the undorei gned incorporatc r baa executed
'theee Articles ot Incorpo r .i,tion this ~ day o f April, 19~7 .
STATE OP FLORI.DA) , ... C:OtlNT'( OF DADE J
Tho f oregoing instrument waa ac lcnowledgad before me thia ~
day of pereooally lcnowu to
- &Ad who did talte an oa t'I .
My Collll!liae!on expires
~ 15: 14 G.L,D. • 7'10 232 9298
r , M.lnuel A. Avila, Saqu!re bereby accept tbe deaigQ&tion aa
Regiatorod A9ent of GLD, Oroup Long Diat11.t1c•, Inc: ., • Plorld&
corporation .
STAH OP' Pl.01IDA) ) ...
COONT'Y 07 DAD& )
The fore~oing inat1"UllleLt day of April , 1997 by N&nuel ma and who did take an oa
Hy Comaiaaion E:xpirea :
c : \Clc!CLO\ • rtlclc• 01
' ~~ Manuel A . Avila, Eaquire
afore me .:hia ll.&i_;
reonally ltnovn ro
Notary P..bl !c: , Stste o f Fl or
Print N.une
~.,.. '° >,,., ... ~£ -~ m ....
s- ~ 'Tl .,,:i> N "":::,:, N r m- ,.,, mo .... • "T\ :x 0 .,., ,-v, u o -::::,> e- c:, > ....
s
EXHIBIT C FIN~NCI~L STATEJIENTS
ll
(!','DEX TO ftNA."'1CIAL STATE.\ILVTS
Rq,oru or lndtpc-ndtn• Certified Public Aa:ounian:1
Gnot 'Tbornton LLP
Timothy~ Hohl Company .. •
B•buc Shcecs .. . . . . • . . . . . • .
St.1:iemen11 ef Opcnuocu ••••••
Swcmcnt of Swokholdm" Equity (Ddicnl
Swem~IS of c.uh Aows . . • • . . . . . . . . .
Noces 10 f'mL,cw S1a1e:ne,11S
Report cf ln<kpcndeftt Cen,fi(d P..ibhc Ar«>11nQ..•1S
Hmanul Stmmcnu or ln:omc and ~1 Openuna El~ E.tcJus,~ of l1em1 NOi Ccm~c 10 lhc Proposed Flnw-c O;,cnl:O<IS or di.: Cuffl>met Base
Pto Form.t Ft..-~ Slatcmc:DIS
Pto Fann., S1a1emct11 of C)p<natiocu Fer the Yar Ended Apnl 30. 19%
Pro Form.a Su1ema11 of OpcnnoM F0< die Ntnc MonCM Ended January 31. 1997
F-1
·-r-5 F~
f .7
F-S
F-19
F-20
f -2t
F-23
REPORT Of l?l'DEPE.'lOENT n RnFIED PVl!LIC ACCQ!Ji'T .\.''TS
Bow or Dittctors G""'p I.on& Das= lne
We ti.-. u,wllOd lhc xcompan11n; bi&l&nc• ,;1,tt1 or Group Long D1>W>Cc. to, / the ··comp>n, ") ., ~f A1ml 30. 1996. and lh< :cl.w::d ,oa~mcn:. 'l! a.'llanJ<. mxkholtkn' cqun). lnd c.uh Oowi for 111c ye>: then ended n.e.t fi11.1nctal swcmcnu me lhc rcsponillulll)' of tl:e Company's m,,naJ!ClnCnl Our rc,poruabil!t) u 10 up~s an oparucn on lhcsc r,,..,,.w soa=nu bA,al on our wdu
We coaduc!:f! O<!f ~udll ,n ac:conloll« " alb gtnerall)' iKCcptcd ••><hung !~ 11-.osc sw.d.>Jd> rcqum: lhll we plan and pafonn tbc audit lO ubwn rouoMt>lc ..uwancc abo<it . ..,hclhcr Ille fiiuncw ,~cnu = free of nwcnal ttU»wcmcnt. AJJ •udll includes cxamaruna;. oa a tul bJJL>. e>tdcnco supp,,rttng lhc ifflOWll.\ and duclo,uru tn the financ:ul na~mcnu. An ~it &ls.o 1nclud<S USCUtng U,c ..-.:ounung pnr,,:aplcs used and 5lJnJficont ouma1c. made by m.uiaa•=~ as ""II "' cvahaung the o•er:all fanancalll statcmcna prcuntanoo We behove tJ\al our audit p«>YldcS • ~Mble bw.s for OOf OJ,'inJCln
In our opiruoa. Ille fiCMCW StalQllcnu rdcrml 10 11.bovc p«soni !>1rly, an •II malCNl rcspccu. the financ11l po.1uon of (;fl)llp Lon& Dwancc. Inc as of Apnl 30. 1996. a.id the resula of ,a opcr11uO<L> An<l au u.,h now, for the ru: then c.ndcd an coofonrut~ wuh acncnJly ..-.:cp1cd oc.wnun, ;,nn: aplu
Fem l.4udcrdalc. Flcnda July :o. 1996
REPO RT Of L'-'DEPE.'100,T CERTrf l£D PUBLIC ACCOL'l'oTA.,TS
We ha,,c luchtcd thc >Gcotnl)at)yin1 ~c ,h<.c:u o(Citoup Loor OuW>Cc. Inc b of .o.pnJ 30. 1995 ,1M 1"9-1. >l>II the ~laied u:mmccu of 1ocrnnc. <1001:hoidm" cquil) (d,,f,c:u l w c.w, iiov., fo, thc >~ then cnJ :d Th,ey !i~.i <la!<:ments .re the mpons1b1!Jl) o( the C11mp>ny"s :,w,ai;,:rr.cnt Our rcs;,onstbllu> "IO« ,,,.. . .t11 op,o,~n oo 1n<:>c financial fUICmCOU bucd on oor aodn,
We coo~ucted O<I: a.,d1u u, -.:.~ Wllh a<ncr.alli ._, cpted , ud,ung 11.tru!wi Tho>< .und.i.rd, ~ ,wtc th>t v.c pL>n IUld perform tl'.e audJt to obuin rCJ1JOn.1blc a»'Ut>nCC ibout v.h<thcr lhc lin.anc,.al natcmeni:s ,re :rec of m.ttenll mustat<mcn1 Ao •udi1 oncl"'1c\ u:am,n,n,, on • 1<11 ~Ii. c•1ck tKc ..ipporuna the • l\®]11) "'1J dado,urc, 1n lhc fillAIICl.ol l:att1DC11U An audi1 >ho 1ncluJc; uscn,ng the 1ecount1"l1 pnnc1r,o u_...i onJ ttfnllic .. " Cltll!Wd mad&, b) lll).'l,\1cmcnt. u ,.cJI AS e, llUa?Jns ,Ix ovcnll fin..c1•l .u1cmcn1 p.C><ntai.cn We oelme lhot our •lldtu provl<k • n,.uon•blc t,,..,. for our opinion
In ;xu opmon. the ru,anc.1..i ,wr.mcnt.s td<rttJ to obovc present f.wly, 10 .U matcml rcspccu . the tir.a~SAI po.11>on o(Gtoup Loo; Ouunn lac u of Apnl 30. 199S ind 199-1. uid the r~ulu of ,u opcn.urru. ~~.d ouosb tl°"'s fot <be ) =-< then coded In confomu1y .... th JCr.cnJI) OCCCplal KCOUIIIIOJ l!f\OCOplcs
T>.mp .. Aand4 !'-0\cmbcr 2•. 1995
CROUP LONC DISTANCE. L'IC,
BALANCE SHEETS
Currca1 .wcu ~h .... ~counu n,ce,viblc less ollcw1U1Cc for doubtful aa:ounu of
S~.000. S3S8.000 ar.d Sl.045.000 a: Apnl 30. 19'15, 1996 and ltnlllll}' 31. 1997, rcspccllvcly •
So1< =av.ii~clattd porty Dcf crrc.d ,._. uieu . . . • . Pr~p,:d expcn= and other <urrea1 ancl<
S~ r=i"2ble..--«hltd pany. r.c1 of cumn1 poruoo Prop<tty and cqu1pme,11 11<1 of &."CUfflulllal dcpreciAuon oC
SW.~ll.l. S~,6,:7 and S96.240 a: Apnl 30. 1995. 1996. and Jan<W) 31 . 1997, rapecta,•c.ly
Cu.,tomcr llajllUlUOG casu. Bet of accumulalal a:naruutloa cl SI0.386. SIJ.l.602 U>d Sl.1~3.82.l II Apnl jO, 1995. 1996 and Janll.U) 3 I. 1997 .
D.:Jffl'Cd offenns caso Other uscu
Tow uscu .
1.1.un ,r,xs "-'11 SlOCXJIOt.DDS' E(X,,n, (D:mcrt) Clun:£1 h1bllzucs
Ltnc of credit .. .. Aca>11nu payabk •• AeCNc:d apccscs and Olhcr habtlJucs . Cumn1 pon,on of lona-icnn debt • • • • • ... Curnnt pon,on of IOGS·= dcbc-nbkd pa,ry Cumnt poruon of up,w lease obbJWOM
Lons·= debt. net of cum:n1 pon,oa up111I IU$<: obhp11001. act of cum:nt portion
Tow 1,41,11,u .. ..
Comnutmcnts and cortinJCOCld S1ockboldcts' equity , c ficlt)
Prcfctrod su,ck, r,o p,u value. 2.000.000 sh.arcs wthonud, ao '1wc< inucd and ouUW>dsna •
COllll!IOn stOC.k. r,o p,u ..iuc. 12.000.000 uwi:s aulhon:it4. 1,761.000. 2.0S7.35l and 2.212.35-i sb.ata usued and ouuWldcis. u or Apnl 30. 1995. 1996 and Januazy 31. 1997. rcsp«i.vtly • , • • , .
AddlllOnal pa,d,10 upatal .. • .. .. . ..... Accumul&ted def !<'It ••
Tow n«kholdco' cqwry cc1cric111 Tow hibalancs and stocl:holden' cquny
s l~.051
l.3~.3-'S
!IJ.000 6.1JJ
l .7it.~
lUSI
106.6.!9
Sl.849.S80
s I.OS9JS6
'IO.S79 J!k).SS()
67.0SJ
l.iOJ.868 160.000
Sl.863.86S
s
:63.700 12n.w1 (l).988)
SI.SJ9.880
s 78,767
1.201.710 96.9~
147.900 76.638
1.601.911
85.o<>:
77.276
R86.9l7 73.J78 U.67S
S1.740.~ 11
s J7.920 1.543.718
2JS.ll8 609.811
6.•'6
2.JSJ.Oll 83.IS9 1S.!6S
S:USl.770
s
U.S.36,, f79.7~l
188.641
S2. NO.: II
s 8.938
2.998.096 139.170 3-07.261
l.109.160 J.562.625
JSl .119
3,.u1.011, Ji>0.~1! 67.0S4
s s.;ss.161
s 63.2.<o ;.~:l:3.739
SJ0.59 l • .:o?,196
:?5.190 6.J.:9,97:? l.57).621
39.9=9 S 9.063.Sl Z
CROUP LONG DISTA.'iCE, INC
STATEM,El','TS OF' OPERATIONS
:i-'lnt )loota. £ad.ed J......,.J,. '"' 19'7 - -lt'-..tl
Sales . . . . . . . . . . . . . . . . . . . . .. .. . . ...... Co,t of ults ••
S9,.53S.09S Sl:?.364.643 $9,194.209 $1 7.093.:S,,2 6.992.317 9.009. IJI 6.733.615 12.512.9-13
Gron pn,!i1 • .. ... 2.54S.27S 3.lSS.SI? l.J60.S9,, J,515.$99 Sdl.111g, ~~ lldmin1utau•c upcMCS 2.G7J.127 U JS.316 l.991.16J 3.3S4.065 lxprec111ioa and amort1W1oa 16.070 l)J.lSI S3.730 '.!.072~ lnccrcu capcnsc. ""' ........ ... . . ~ . . .. 22177 19.050 l~.6S.: .307.392
EanuJ:as (Jou) bcf- 1DCOQ~ Wd .. ....... ... JJi.904 167..W 403.0lo (2,IJ8 . .:o2J Income tu c,pcn.i<e 151.000 169.900 tSJ.030
Net wrunp (Ion ) s 2Sl.904 S 197.965 S 249.0ID S{2.1 Jl;.~)
Emunp (loss) pc: common a:id conuucn cqwvvcn1 s!wc s .15 S .10 S 0.13 S 1037)
F-S
C ROUP LONG D1STA."1C£. L'IC.
STATE.\li!:'"T O F STOCKHOLDERS' EQllln' fDEFlCTTI
Two Yurs Eodtd April JO. 1996 a11d Nlil• Monllu Endtd Janury J I. 1997 (IJnaudlkd)
T-Sbara ti Ad4kloa.u -~· c- c- - 4-0od ,.. .. ~ -~ ~ Ddlo• -· Balaou. ~la) I. 199,I 3 .7SS.SOO ~ s 183.700 s ISS9..592) s m, .s921
lu,,_, a{ common ,toek J?.000 1•.soo 1-500 lu.a:,cc of C®lmOII si«k ro, c.tac:u of
aoclc opuons 179..500 94.SOO 9.:..500 Common 110<:I< rncqmrcd Ind ltW'td (42.000) Pl.0001 IJZ.0001 Srtanw,p !81.90' :g1.904 BalAIICC. Apnl 30. 199S 1.ru.000 :6).100 c2n.6881 II J.988) Eutcuc of opooc,s 132.353 110000 110.000 Coas ol ~a , iwe. (IOS.llO) IIOS.336) Nrt eanunp 197.96S 197.965 &l.a:n. A;,nl 30. 1996 J.~7.JH l~.Jt.! ('"9.72l> IS .~ I wiw><c or common wx~ 200.000 1 • .ioo.ocn '·"'°°·000 Commcn SIOCk r~usrtd , ~s.0001 lllS.000) (l lS.000) Sa:. of Wa,nnis co Td,Sa,c 600.000 600..000 Sci Jou fo, the pcnod (wwxlual) (2.148.4021 (?.1 48.-102)
Bal.an«, Oc«mber 31 . 1996 limouditall Sl.Jll.lSJ ~ - S l.9Sl.J6.i S(2,l2.$. I !SI s r:,,. -~,
CROl.1' LONC D1STA.'iC£. r..C.
STATE.'1£.'il'S or CASH now ~- )!.O.. £add
\ '•-' ttwke A£!!! JG. J_,,.)l,
l ffl '"' !!!! !!!! 1\,- 11:-..1
Cuh no,.S from oprntUOi YMUCS Nctcim,np S!Sl.91): Sl97.96$ S 249.016 sr..1.:s .!02) AdJWllDCIIU 10 roconalt CCI Qffllllp 10 llCI cub
pro"lded by opcraung ICIJVIUCI
0cprttWIOQ and IIIIOttlUU04 • 16.0"IO Ill.ZS! H .730 J .!)7>-S,&,, Pn>--won ror bad dtlxs JOl.103 JO.: • .iso 01J.S6S) 73J'.l7S O.,.,aes on uscu and hAbohues
lnausc: lD ICCOUIIU ru;el\"&blt (7!},-1 13) 1!37.SlSI ).Us s ,: .:J0.661) llnau>el d«rc.ue ID noca ~ovablc: IIS-1.0S01 .:l,880 (lJ>CTUSC:) dccn:ASC ID dt(CTTCd LU bSC'I 1"6,000 66.100 I.I I08 ( IS9J 6ll (l.:,,auu) dcat.ue ID ptq,a,d ClpcllS<:S and ccher
aurtDt .UJC.U JJ96 l~O.l9Jl (275-'90) 16J!Jll) IA=-ue on xcounu P">•blc l S8.US .iS.,J6Z 1.:J. :!.: Q"'l!.169
lnacuc ( dca-c_:uc j lO acm.cd Upcl»<S and ocher hab,bo:s __!1!12_) l~ .!~9 112.961 2 S.189 Net c.ub p<ovoded by (ukd 111) opcnw,,
.ICUVIUIU ...Lld!2 ~ .a-02.215 163 75<JI Ca.ill no .. , from u,~s11oa X'IIV111C1
AajUUluocu or FO!'C'1l :u,d cqwpmcn1 128.961) f,Z.249) (Z0.9501 1162.166) Arq\llSl!«XI) of CUflOfflC1 buc1 Cl 11,0:SI 19°'.-17-1) (.u6.ll11 (6.717 . .191) lncrusc on otha UKU ~ I Ul.3791
Net c.ub used ... Ul'nllllJ xo,-.u .. 11"6.0061 ~ I C.:67.0~1 16931.036) Cub 0oWI (rom lllWICoflJ KtlVlCc>
!'let bono"'••1• uodct I,~ of credit 1pmen1 .17.9:0 so.coo ProcccdJ from loan Clrll)Jal>OCU 1· .:10 I 12.IS9 80.JSO 7.~8.0J9 Pnna~ rcpaymc,11.s of ~-= d<bt fl09.S61) (ll:.82l) (IS.000) (6$0.935) Ptocttds from the: ulc of COC\IIIOII nock 112.000 110.000 lS.000 Pnnco~ rcpaymcnu o( Q,"lll la;e oolopuocu (.&S7) 11 -1,6391 Offcnns cosu ,naarcd (178.S l-1) (U0.661) r.87.-169) Common 11ock rcpurctwcd >1'11 rctiffi:I .. tS.000)
Nc1 c~ l llkd 101 pro"1ded b) fiomc,oa ICIJVllltS (188.6S I) ~ ) !50.311)
;);c1 ,..:ruse rdtcrtuc:1 10 Q>b S "'4.$60 S ( -1-1..2&41 S(II S.09 I Cash u b<piwn1 of pcnod 76.-191 ~ 1n.os 1 Cub a, end o( pcnod S12l.0.SI S 78.767 - - s 7.9Sl s S.Y~
NOOUJJI ID\..UDI -.ad (ui.&.oans OCU"11)'
The Comp&t,y >eqwrcd a cwtomcr b.ue pvwa!ly w11h common tlOClt wttb • ,'2)..., of Sl.035.000 duno1 the: «1111 mocitb pcnod mdcd l)a:.cmbcr 31. 1996
CROCP Lo:,;r; DISTAJ'iCE. 111/C.
:,;on;s TO ft:-A:-ICIAL ST A TE..\I ESTS
T" o , •cars Endrd "pril JO. 1996 a.nd ror •h• :S1n• Months Ended J anuary J I. 1996 and 1997
f Information Rei.tine co th• Sine ~1ontlu Ended J•nuary JI. 1996 and 1997 ls Unaudic<dl
Soc• A-f'ormallon and Opor.doru or the Compan1
In So, c:nba 1995. Group l..orii On=. ltie (lhc .. Comp.u,) .. l l"hith ""u 0<1f1n.all~ 111Corpomcd 10 Juh 19'>01 ma.red 1.0co Sc:coad ITC Co,pon!Jon. the survmna corporot10ll. "'hOiC n.amc ,.,., dw1Jcd 10 Group LAOo; On1At><e. !n.: The el!JUDS sioc:kho!dcn of Grou;p Loni Om•nae rcu.ncd Cl.1'1- o( th< 1nucd and ou~nd,og <tock of lhc """i<d comp,ny For .accououo; pWJlO<Cl, cl:e ...:quumon bu b<t n tr~1cd u • rccap11.1ltu11cn of GrO'•p Loos Ouw,e,, ,. ,th Group l.ong Omllll(e u the .a.,qu.rcd ln'.'cnc .s,;q~l\lllOD aad the lirw,,:121 fUlcmait, of Grou;, l.ong Dl)t.ulcc = consldctcd 10 be the fi1WK1>l .wcmcnts of thc Ccmp111~ Hrncnal m,c:lcholdcn cqwt> of Group !..<log Disc.,nct pnor 10 the mctacr has b«:n rctro.c1.1•el) rc.u1.0d
Th.c Camp;,n; u • ntlftf>e1hu<1 based rcxllcr of lont dOWICc cc!ccammun,c,won \CIVIU< Th< Compan, uulun KtV:cc--, co.ctnas io pro .. ·1& ,u custom.en 1;1;1th 1wit:h.crl dcdi.cJtcd and pn'utc hnc- ~r-·tt.t"J: t0 vu 10lli
Ion; duw,c,: 1<:k<emmun11:..uon1 iKNorits su.:h ..u AT& r Tel,S.-c. W0<1dce>m and ICI
:Sot• S-Summary or S,gnif1C1Utl Accouotlnc Pollcie>
A ~="- o! !he IlfftiliC~l ~ftbftj rc,liclc.C tonlutenU) "J!PltcJ 1n thc p,c;w.m~n of ihc IC"""1p.1n\ln, fllWICll\l SQ1efflClll-' fl'l10"'S
p,.,,,,,.,,,, <( C01Ua/ufatu,n
Thc fow,c1>l 11.11cmcnu 11 Dc«mba 31 19% >Ill! lor the c1glu monw pcnod cndcJ December 31. 1096 rcpmcnll the eoc<ohdawl rcwlls of th< Com~n) u,d 1u "'holly-o,.ned subs1dw,c; Gulf C<,mmuni.,auon Scrv1cd . foe. >Ad Ad'<n1Utn-1n-Tclc.-om. Inc . 'An,ch ,.enc ocqu1red 1ft ~a., •nd July 1996. 1ctpc<tl\d) (Ice Sore 01 All tn~ompm) b.iw,«1 ia,.., b<cn cltmin•ted ,n <oiuohdauon The ri1W1C11I \U1<mcn1s ~• of Apnl 30. 1995 llld 1996 111d fc, the,...,.. !hen el>Jcd onl) included th< O!'<rauon, cf~ Campa,,) ~,lhout • n) 1ub11di,nc~
CaJII ,md Cash Equn-alrr.u
The Compan) comld<n .all lughh hquld ,.,, csuncnu "'llh mo1urn1c> 01 tlu .. • moncn, OJ le;<. "'hen pur-.Jwcd. to t>e <A>h equivalents
Addmons >nd m.,or •= .. ~ t0 p<opcrty •nd cquipmcn1 ""' rccordc<l lt CM!. .Maint<iw,ce •nd rcp11n 111e
char;cd co «pcrae .. tt.c,, 11,c,in-cd The COil and .accumullkd cltprccm,oo of .weu k!IJ or rctucd .,.,. rcmo, cd mm, lhc rcspccu•1: xrounts >11d >II) rcwlllni 1.un or lou 1, n,n«1c4 10 11,:ome The: Cnm~,) pn "dci (c, ilcprco • DOn using the t11JJllht•hne mcthoJ o•cr M dbmlllcd u,cful life of fi,-.: t c.an for o flkc cq llp,ncDt, iumnurc .llld fLltura a:,d !u.schcld 1mpro>cnu:nts
Custon-Jr A£qwJ.Jll""1 Com
C•~omcr a:qwsiuon cc,u rcp<C\(nt the c0<1 Ol !'utehascd c,a1omcr llC'COUnu "lucb lll'C amoruz;cd o,cr fi,c )an uultuns ;an .iccclcraccd method. The Coml""'r°' IUI\OrtlUllon mcchod and IJfe uc bucd on csumai.t:d annuon m~ .snd ancmpt t0 maich thcst coru wu:h lhc cone.speeding re"••=
F-il
C ROUP LONG OISTASCE. INC.
SOTES TO fll\lA.i<;CIAL ST ATE.\1£ /lo"T'S-/Condnutdl
Two \ ' ton Endf<I April 30. 1996 and (o r 1M Sin• ,\lonth$ £ndtd Jaauar,· 31. 1996 and 1~7
(ln/onnallon Rdallni; It> I.be Sin• ~lontlu £odtd January 31, 19% and 1997 i. l.'naudlttdl
/lo'ott 8-Summ.try of SIJDllkan1 Attoundnr PoJlcl<>-{Cuadnutd)
In Oe«mbcr 19%. as • =II or lughcr th1111 u pcctcd c,urom<r 11111uon, the Company ac,ctemcd lhc .moruuuon of :he acquamon cc,su o( the AtT ==• bosc. Thu clw>ge u, c,um.11c re>ultcd ,n SI .J~. ;oo oi oddmonll &mOl'IJZ.U,Ofl «pcruc ,n the C1&ht monw ended December 31. 1996 b.ued upon thc ..... r,,,., yc:sr amon:uuon nu.c o( 7511- compMUJ to the csnmau:d nue of 30~ " luch the r.<>mp.>n) "'.U pre, ,ousl) uun.g Thc Company wall omcrJu the :cnwruns tw= wan,- 15'1: ,n yc.v 2 •nd 10'.c m ) <» 3 The htahcr tlun « petted &llrmon rewired from delay, 1n unplcmcllllni thc Compon~ ' s .ICIVacc llDd rercnuon Pf'OS'ilm 1wlucb rehcs an p,11'1. on Tcl-S1vc'> 1n>1Alllauon of,u n<w AT&T d,a,w sw11ch1ng cq1:1pmrn1 Addmonllll) u.:rc.u,ngl) C\lmpc11u,c coodmon> 1n the u1d11Stry h>vc llfl'cttcd the ••muoo m e
lr.:o,,u Ta.irs
Deferred income LUC> have bttn pto'l<IM (or cl<m:nu o( ux:o= and c.pcn)c ,,.hi<h are tc<:QJ;nued lc,r fuan<11l! rcporuni purpo$C> 10 pcnadl difl'ercM th~ such ,rems vc ra:ugruud (or 1ocomc w purpo$C;J The Com~y a.::oont1 for Wm?d IJ.tcj uulwna 1hc l,ab,ln) mctlwd. which apphcs the , noetcd sW!Jtc~ rt1cs an effect •• the bal:ance sheet date 10 c!,ffcre,icca bct,.·cen the book illld t.U b.u11 o( .. )CU and IL1b1lni.c1 1llc ruuJt1na di:(emd LU lt>btlaues and USCIS are "4JUStcd to rcfla:t th>tas<> 10 W. 1•""1
£,,,.,,v,gs Ptr Sh.art
wn,n;, per s~c •:e b•k<I upon thc "'••¥htc,J • •ensc number of <Ommo,, .ind cumm<J11 cqur- >lent ,hares out,t.wl,ng dunng u:h yc11 1bc: 1cal number of such 11,e,glucd a,-cngc \hare, was l.8-I0.2$0.uid !.Ot8,J 7~ (o,
the ye= ended Apnl 30. 199S .,,d 1996. ~uvclv. an,! l.OS9.D"..5 and !.2!:.911 (or the c,ght mc,nthi ended Dc«mbcr 31. 199S lint.I 19'16. rc,ipccu,cly S:cxk opuoos and w.vnnu uc con1idcred common steel cqu1valcnu. ,nlcu lhCll 1n<ltnion would be anud1luuvc
Lu of Emmn1u
In prcp.,,tnl (1JJi&l>C,.I .sutcmcnt> 10 C1lnfomuty ,..,th ~ncnll> .)('Cql<cd = o ununa pnncrplcs. m•nogc=n: i> required to mau dl>mAt<i and usumpuons thu ..tfa:t 11-.e rcponcd lUTIOUnu o( >J~ts ilnd lubalmc., •nd the dt>closurc or coaun,cnr :we .. •l>ll 1"'11,hucs •1 the. <btc or the fi1W><1•I <LllctneOIS .and , ........ and C,\PCOIC$
dunn1 th,: rcpcrung pcnod Aetu>l rcsulu could d1J(cr b orn th<>«: csum.1tc,
Fa,,. Va!.,, u/ Fv.1JJSc111l /,u1r,.rMnt:J
Swcm<nt of F,nancul Aa:ounung 51.>nd.vds :,lo 107. " 01«losurc, Abo,i Fa11 Voluc of F,n:anci•I ln1'1\Jmtnu.." n:quircs du,:1-rc of ca.mated (.ur ,·aJu« a( !iruncul 1iu111Jmcnt:S Thc>c e,ona!C<l ' au ,.tues .a.-; Ill be dl\cl~ llhe~t or~ • the) lie rtt011!1Ut.d in the balance ,hcc.1. pro,tdcc! at b pr-acuc,I t0 csum•tc such ,alUC> 1bc: Company cs11mo1« that the rw VA!IIC of Jts filWlC1.al 1n1tn1mcnts •ppro11m>1c:< 1he :m,1ng ,.iuc 0 1 Ill lin.an01Al 1nsuumcnu 11 Al'f'I JO. 1996
,.<CQWlllng For lmpa,mi,n: of umg•ll\ td ,.,uu
Su1<mcn1 o! Firwx:,AI Accoununll Sundanls S1> I~ l. " Aecounun; for the lmp.ur=n, of Long-Lived Aucu u.d fo: Loog-L»cd A>k!.1 10 1k Dnp<l,\Cd Of." requucs 1h11 lona-h ,-cd usctJ md c=n 1nw.a1blu
F·9
CROt;P LOM, OISTA:-CE. l .... C.
' (JTI:S TO •·L,ASCI.AL STATL\IESTS--'ConunuNII
T•o \ 'on Endt'd pril JO. 1996 and for tll• Siot ~lonllu Endt'd J a111wor, 31, 19'11> and 1'>97
flnformalion Rclatln111 In th• :-;,,,. \lonrlu End,d Janu~ J I. 1996 and 19')7 b l:naudllt'd,
:',oce 8-Summa ry or S,vullcanr AttoUnrinc Polk~Condnutd)
held .and oucd by..., cnuty be rc,ic,..cd fo, ,mpauu,cnt "ht""cr c•c•u or , !Ullf« on <U'CUtlUWXC\ rnd= I/us the CatrVIDf _,., or .v, .. >et ma~ oot be rcoo•cnbk i1IU mr<:ncm l>aJ r.o ,rr.p.,,c1 ~• the Cornpan, , rcwl1> o! opcB11on1 or fin:anc,al po,11JOO upcui odopuoo 10 M•i 1996
St«t 0pt'.otU
Opc,om .v.111ta1 under w Cornp.c) · , Srock ()p(1on Plan arc accountal ror undu APB lS. " A<e'hlnun11 rcw Stoek luucd 10 Empl0)«1," w! rtlatal tntaprer.auon, In Oe1obcl 1995. rhc FiMnc:al Aa:oununi Sundanh 8-d ,......i S1.1tnnen1 12J. "-'"Ounu,, fo, St<Kk·a-d Compcr,uuon.' "tu.:h ,.,II m;uirc a-!J.uoo.al l"Of~ c!ncto,wu for cornparucs 11w "'II :onunuc 10 .x:.count fo, cmrlo,« nod opuo,- Wider the- .nu,,u,c •&111< mcthol spcc1/i~ 1n AVB lS lllc Cornpan) rl•n• to conunuc to apply APB 2~ and the onh ct •«1 uf odcrtina St.u<mcnt I :?.3 tn M•> I 996 ,.,11 t,c the nc .. duelo,urr requ1rtmen1
t,,i,n,,, Fw:n,;,at f•{P•l'Vlll<1'1
lllc tinanc1al 1Wcm<nu ,i llucmbct )t 1'196 And for the ••Jiu mooth !"'nods ended Occr.nhc, JI 109' inc: 19% .uc uMudJt<d and prCl)M<d on thc w:ic bua< ~ 1hr: ....S.tal ,on,ohJ.ucd r,...,,.ui .utcmcn1> '"' ...:eel hut,n
Ir. the op,n,on of man•acm<n!.. 1u.h 1n1enm linanci.tl >talcmcnL• ,nrhu'.e .U Id u,uncou lco·,"•unc ol nonnal rccwru,a ldJWUllenl>I nccc>ury to pn:scnr (a,rl) the rc1ulu tor ,uch pcnocb n.. rnul1> .( opcr.::c>ru for Ille c1at,t rnc,nlh• cnikd Ottcrnbct JI t99o .i:c aoc nccau.nl) Uld1C>Lt•c l Ille :autu to be '•!"'<led (u Ille f\i.11 )'Ur or an~ ocha m1cn111 rcnod
Rtcfa.J1:jka:1o,u
CctUUJ r«Ltwfinuom n.a,c been mMlc: to the pnor ) Ur" • l,IW>OAI uatcmcnu 10 con(°""'"'"" the ,c=nt ) c-at prcscnt1t1on
:-.oe. C-Concct1tnllmu or Rhk
Fuu nc~ 1MU11men1> L.._., pocentwh sub)«! the Comp•ny to ,o,...cnrr.aoon, o( ettc111 rul '°""'' or a.:,,oonu and n<>1<, tecc,,•abic "'hrch ate due from bu\lnn<cs pt'lm.>nl~ locotbl rn uic Southc.utcrn L'nitcJ Satn The Comp.in\ t:f'nunlU.il)' <" iJUltc.'I the a edH\lo orthux., \ of ru (;uuamcn ho"-<' er. u Sttw:rJ.Jh c!c< n« tcqvar coll11atl
lllc m.11on1y a( the Cornp.uiy', revenue> ar.: dm•cd from c•JI< placed 1hrou11h AT&r, raelk: Tcl,So,,. Inc l' 'Tcl·S••c··i S""b tc•••= rcprt .. n1al 6l 't and ~-'\ ,,r 10QJ tc•<non ,n f,=I I- and 19'1• rcs~U\CJ~
Soce D-llM or Cndll
On D«cmbe 11 199$, the Comp.anv coiacd into • ~50 hne ul <trdJt lif«mcnt "'1th • lirun:t.al ,nsoruoon Tht hn< or etalll "'ll rtt1C•cd m AUIU>I 19%. m.111,11n ca Ausu,t 1997 ...ct bc.v, mtacll lll ;,nme plu, 2q. Tht 1111< o ( u cdu 1> coll•r<nlucd by tll lbc Com~y·, tqucpmcnt m.xlunct) , fwnnu« and 1nWt11bTc, and " pcnorully gwuan1ccd by the Company's r,c11ckn1
F 10
CROUP LOl'-C DISTA.'ICE, IJI/C.
SOTES TO rt'!ASClAL STAT£.\lE~Contlnu<d)
Two \'ur, E.odcd ~pril JO. 1996 and for lhc Sitw ) !oaths EOCkd Ju,uary 31. l."6 and 1997
llnlonnatlon Rclatu,a 10 lhc NIM ~lonllu Ended Juuary JI, 1996 and 1997 Uoaudlt<dl
Sou f.-Lons·T•rm Debi
IA:!1•lfflll ~bt is comprucd of the folJOWlfti ill Apnl 30. 199S and 1996
Scau<d Tcl,Sa,·c 1ntcra1 bunna SOit at 1>.5~
Scaarcd Wo,ldCom llltctcsl bw\1>1 So« at 16-'4*
Unsccuted pn,muwy n- piyablc 10 • Cotperauon 111 COMttlJOO Wllh .,, lal'JUIIIOG. The Note IS ~>-.bk UI
cqlUI monthly 1nNllme-nt1 or SI0.000 unttl ~bnw)- I. 1998
UM«Ut<:d non-U11<n11 bean•• scnlcmcor p,ty.bl• io AT&T The Comp.\lly 1w btta "1d conunucs io be m dcfaull undct tlus obhpuon. S... a4o NOie L
Uasc,:urcd promw«y aocc poy.tl>k io a duecior or Ibo Comf&IIY ai:d a:, IIAlll',bated rlwd p.ut)' Tbc -•· ,.htc!i l'llll\ln:$ on Sq,ttmber 2$, 1997, b d11< ,n 24 cqU>.I month!) Pl) menu S1.600 and bQrs Ul1CtCS< >1 prone l'I"' 2'A Sec allO Note J
Uo,ccun,d non•mtcmt bun•& aocc por,,l,k tO an u,dmdial The nocc. wlucb m.uurcs on Apnl I. 1997. 11 due III eqial monlhli pnncip.il pi~u or Sl .000
UMCCW'l:ld 11 'il miaat bcMl•c l!Ot< whrch u pa)(•blc ,n monlhly 101wlmca11 of S 1.000 and nwurcs m flscaJ 1908
I ._, 1n1t:ra1 bcanna note pa) able ro an md1~11.d The no~ u collaraahud b> 100.000 sharu of ~ Com~a) ·, common >10Clc.
I Ill- 10le1CJI banns IIOla pa,>blc 10 uockboldct• The note> ,...,. ~paid oo Dcc:rniber l l . 199S
Lcil eum:n, poruon or loa1-1crm debt
s
1J.000
n09,
ll.9S1
61. l
713.bll
SS3.6ll
Sl60.000 -
s
91.~28
11.000
:5,97)
17.069
d/2!110
609.81 I
S 83,UQ -
- ... JI,
'"' SJ.TI! .llS
l.l'>J,01"
S,17,$00
72..117
~.000
:1.o91
19.2: S
S.565.nJ
l.l ~ .S30
SJ.J70.9-W
CROUP LOSC OISTA:.:c E. L"C.
l'IOTES TO Fl.'IASClAL STATDIE.'~Condnu«-: •
Two \'nn £Ddtd April 30, 1996 and for ~ Nin< Moatht £ndtdl J anuary J I, 1996 aad 1997
11Af-.t$oa Rel.ulq to tbt !\inc ~loollu £i>drd January 31. 1.996 a nd 1997 is \;ru,odlcrd l
:,,lot< E-Lo,,.·Ttrm Otbc-{Coatmutd)
Pru,c,l)&I morunuci of lon1·wm cl<bl a1 A;ml JO. 1996 ue as ro11 .... ,
.,.., r:-. April JO
1997 19911 1999
S609SI I )8.876 .a.i~Sl
:000 &nd thaufta
SOie F-locom, Tua
The CM!pany .occounu for income""'~' ,n 1«oro.ncc ,. nh S=men1 al F=w Ac:counung Sund.i:lb No 109. "Aa:oununs for focomc Tud" v.lucb reqwrr, the use of the "luah!) mdhocf' of """""uni (en LOCOCK we, A<c0nhn1ly. ddcmd w hab,huci and u,eu on dc1<m11n<d b.ucd on the d1ffm:nce bcl"'<cn 1ti< fin•=&l st•ll:menc •nd w base, of ancu 111d hllblUmc:s, ui,na U-11u1ory fccl<nl uicGmc tu r>ld 10 cffm fix lbc ye»
The Compan)', 11 Apnl 30. 1996. hu an &lll:flWlve llllAlmwn w ardu an-y(c,,,,ud (or (cd<t>I income w putJ)Ofd of .app<o• rm.ud~ Sll.000 . .. tuct, ,s •=I.able to offset fulUIC ""°"" l,alxhuc:s
The provuion for u,come tu<-• coc.suu of lbc followins >t Apnl 30.
Cwru1 Oe(cmd
!!!! s 5.000
~ $151.000 -
~ S 103.!>00
66.?00
s :69.900 -The p,ovu,on fen ancOCK wci differ, from Ille &moue, of ,~ tu <ktamllled b) awl)1n1 Ilic
apphcablc u.atuuiry fcdcnl lllCOGIC tu ma IO prcUA income u • mult of the following dJlf=• at Apnl 30. 1995 and 1996
Provt-'lon for mcomc w ci. a1 3411- . lncrcue (deausc) UI IU IUlllUOI ftom
Amcru...uoa Nonckductiblc 1tcmJ
Al!UIWl•c mm1111um w cra!Ju Effect of ,nduatcd w l>ld
Swc wu. n<1 of fcdcnl w bcnw1 Otha
,,., $147.100
6.000 15.000}
( 14,100) 17.000
SUl.000 -
.... Sl'.?.S.SOO
3).~ 1.100
(13.000J o.soo, ll.~00
_:ill>!! Sl69.900 -
C ROUP LOSC DIST ANCL INC.
NOTES TO f"INANCIAL STATL\IENTs-{Contlnutd)
Twc. \'eon Ead«d April .JO. 1996 •lid for the !'ilM MOtlths Ead«d Juuary JI, 1996 and 1997
(ln!onnadoD Rdawis IO ~ Sine Moatbs £ncltd JllllllU)' Jl, 1996 &Dd 1997 l, UnauditNll
NOlC f - lncomt Tucs-(Continutd)
Dc(crrcd w useu .uc compmcd of the follov,">nl a1 Apnl .lO. 199S •ml 109c
AlloWOJ!CC fot dll<:bdul OCCOWIIS
C~lOlll<t KqUUlUOCI C'\IIS
A=ucd boaui AJ1<1Ut u<c muumum tu credtu
. . .......
!!!..! S!I0 . .:05
~ 21~.000
. .. ~IJ JJOO -
.!!!! Sl~.700
37,00) IJ.lOO
184.900 37.000
SIJ ?.900 -lbc Com~ y tc:ucs \'fflOUl Olflec faciUUd undo nonun«lllblc opc:a11ne lcas<s v.luch • • PUC ., unOUJ
d&:c. lhrouJb Matdi 2000. 'The :case.< .-onwn renewal opuo,u and p,ov,d< fo, rcnial uiacuc:, by cttbct trtd<x or = .,xauon. F\IMcl. some of thc lcucs require ptym<nl of common arc.l =~ and unhucs Rell• upcMC for thc )-C.V$ ct!ded Ap,I JO. 1996 and 199S U>alcd •P111'0Xlffl~ldy S?• .SOO and S73..SOO
Ya., r..dJoa
~~ 19n . 1998 . 1999 2000 Lod lhcmittt
s sa.ns 91,1 18 89.096 n.266
S342.:?08 ~
The Compa.oy lca)CI ccruln cq111pmct11 undct cip11al lc.uc •anemcnu. ~ c.-ononuc subswicc of lhcac ag<eelDC'GU u Iha, the Comp;>n) IS 1iJW1Cu,g thc xqw.s,u,on of wcu.. 1bc net book value of thc tq111pmcnt lc.ucd IS sn..s 11 The follow,ns IS a ..-~ulc of the funm: aummum 4nnual lase ~ymcnu due u!ldcr thc IUk>
Yu, EMieC Apnl JO
1997 !99 1999 ll'.d thc.'Uftcr
Tow muumum future lcasc p;aymcnu Less &m()WIIS rcpn:scnllOJ 101.CfCSI
Pracnl .-.Jue of (unan, awumum lu.c p;a)'mtnU Leu currcn1 poruoa
P, 13
S 9.l65 9.265 &A9J
27.02• 5.000
22.02.a 6,456
S U.j6& -
GROL"I' I.O!'G OISTA1'CE, 1:,;c.
'iOn:5 TO n:-;ASClAL STATE.\IESTS-iConllnucd l
T"·o \'cari Ended Apnl J-0., 1!196 and ror th• SIM ~tonths EAdcd JanuaJ1 JI. 1996 and 1991
( lnfomuotlon Rtladnc to th• l'ilM ~l onth> End•d January JI , 1996 ~nd 1997 I:, l:nauditcd l
:,Ootr H-Commltm,11u and ContJnccndH
C=n ot lhc: Compo,,~ ·s ncNOfk =~ >,:ttmcnu <OftWn pro,,.,,,n1 f0< l",V'>lltecd month,~ ,clumc a•.d nct,.mi u..wgc ""luch u Lile t,»,. ror detcrm1n1ai •olume dts.oun!S and udt.er >p«t>I b1lua1 fanau If t.hc, Com!WJ) u urabic to o1Cluc>e the 1111>nntced moathh , oh,11:c. the ,pccmcnu !'")•ld.c ro, ,.,,.,,,. sur<lursCJ
In Fcbnw'y 1997 (\Cc 'iotc 0 1. !he: Compo~ •nd th< Comp.111) , Pre>l<knl .r.S Ou:1 E\Ccuu,c O'ficcr cntc:cd IIIU> > IV>O-YUI cmpJo>lllellt lt,fCCIJIC:.I 1-'f'O' ldtDi a b4<c ,..i.11) o( SJ 1().f.<,() ancl a l>OnU> twcil Oft .CfUJO
c.V01q1s cntcna In .add1uo11. 1-lr Dunne wtll be ifU<cd opttnns 10 pun:twc :.l<J.000 .sbaru or Ccmmon Stoc~ 11 an umuc I"'" cqU&l to thc flllr muk.tt •al.1t or the Common Sta:k on tl-.c d.lt< of snru
Sond. Inc f"Sontl"J ond Accutcl Commun ... auo<U. Inc l"Accu1<l"1 have filed cor,b1nc<l s111u u1,Mt lhc Comp,,n) alfcgJDJ collks of .._"ll.,.. for anuc,~ ~h of .onUX'I and bro.h of ,onir .. ; ._,,.., ln,m tJ-,c
:.:munauor. cy lhc Compan) or >Cf'"lCC ucdcr • Set\ sec cona11C1 al\J 1ndcpcndcn: nwtcuna d11!nbutor •;rccmcnt ,.,tit cxh pmy The Compan) terminated the odcphont ~,en cf Sor1<I and tcrmu,a:ed lhc .J1unbutor rcluoi>wp ,.,th A=ttl fO< brucliu of .:oncr.an.1n.:lud:ns the failutc to comply ,.,th L'lc p,,ymc:oa terms of lhc,r <eincracu Soncl and Accutel cflllm t/t.>1 tlte Cdmpany anuc1pitCnly 4nd ,.rongfully 1<rm111llt<d tlteu con~ts. and A«utcl claims tlu1 the Cocnp/lJ\) cr•a II S89.6<>' 1n unp,i:d com:Nmcxu Sortcl sued lot an 1n1•cc-JOfl AplftSl the Company'~ tmllJCIIIOll of telephone WVICC:S and l'ti A,.-.udcd an U •JWIC Ufflpcnt) lftJUl)(llOO. b"t at • lxvlna rw dwoluuon of the onk1 Ille Cowt 11M1cdl.l1dy onktcd £he: d1uolu:.oo o: the pnat 1•1=on lld ordered all ~cs to ancnd mcduuOll Thc Cocnl)IIJ\) bcltc,n ,t "U JUSUlicd m lCl!IUnaUnJ kf\ 1~• ,n accordoncc ,.,u, th· contrxU 1nd intend< 10 v1;orousl) defend 1u po1iuon Hov.e> <r. tlk-rc cu1 be no •Uunntc
u to the pou1blc ou1eomc of tltu xuon
B«, .. ccn Ottobtr 1991 and lune 1991. ti'..: Company borro-.cd an •1veaa1e or &l'PfC>111U1<I) Sl::5.000 from ~It H~ I. Sutton.• 1tockholdtt ,>( thc C,mpaA) As of Ai,nl JO. 19'l6 ll>c CocnJ)lft} o"cd ~Ir Sa:non Sl7.069 In connca,on ••tit ,11c:h borro'-'1nas the Com1>1ny 11 ,anous umu pltdacd >cellflU<l to Wllt1: ,u. cbhg•uon1 The COlllp,/IJI) and Mr Suno11 cwn:ntly ,re ,n dt1putc ,.1th r<>J)C(l to the ow11<nl11p f 100.000 \lurc.l o( Common Stoet ons,r~I~ pledged to kC1>l'C the Comp,nf• boffo,.,np Bc, .. cen Ottobct l'l'll 4nd lunt 1991 :he Comp,,ny bono"cd •• •iircS•« of apprnxam.tcl) Sl'::5.000 ( n,m Mt futold I. S•n= ,1
.iockhold<t cf the Comiwar Al of Apnl JO. 19%. me C-pan~ o,.cd ~Ir Sun.,a •ppnmm.ul> \ I" 069 In eonoo,uo, • 1th Jl>Cll bom,,.1np Ille Com;w,y 41 van'l<l! tames pledged sccunuu to s,curc Ill obhr•uon, Thc Comp,tny and /.It Suuon cuntntly .,. 10 dtJputc ,. ,th respect to the .,...ncnlllp of 100.000 ~ or c~mmon Sto<l onp,ull) pled;cd 10 w:turc the Comp.my"s 1,ono,.,n,i from ~tr Sunon In lln,wy l!l'r !he: Con,p;tn) fifed an .><uon ;celuna • dcciv>tOr)' 1udamcn1 a.,d • Judmal dct.crm1n>t1on
I!> So> c:nbct 1995, L'>t Boa.-.! or Dtrcaort ond sharcliol.kn of • ptcd«<UO< ,o,ronucn 1 ·GLD" I •PP""td • Plan 1nd Apccmcn, or Mt,acr "'luch stlll<d t/tJ1 the sharcholdc" or GLD ,.ouJJ o" n .,.,~ o>t the ouuundtns stwn of Co- mon S1«k cf S«oaJ rrc oU>d the sh.ircholdc" or So-ond rrc -..oo1.: o" • the rt.trwn1n1 ~I\ of lhc ouui..>dlns <hart< Punu111110 lhc mc11cr. lhc slwdioldcn of GLD rctcJ\td s~ 5'< of Lile slwu of Sc.ond rrc .&lie! 1.'i< slu."Cbokkn of Scc,od rrc 1ccc,•cd 1 ::JI\ or t1tc .... 'UW!dlns s1wn of S«Olld ITC. s.luch 1Z1Cllldcd an >Jir<pl< of ll0.000 \lure.< 16 5~11uucd to cmJ" .,ccs o( the Com;,.n~ tcollccmcl) the " foundcn"J Wlult tltc mercer and thc 1UIWl('c of the <lures to tltc (ouodc:i 11.a,~ been ~ · ntl~ raufit<l b)' • m.i1on~ of thc ~ of tilt Compm) tbl ""'' lhufboldcn of CU)•• thc umt of the mcri<f. lllc1'c can be no assurance t.'1.al sha:chol""" .. ,11 not l«k ltfal ocuon •iiUrut the Comp,u,) IIJld the (oundcn fer flllhna to dt.w:losc the 1n1W>C:c cf web sh.&."<> oU>d the rewlus dllut1011 to the slw~ or tb.u .n) such Ktlot1 ,.ould IIOt ha,c a outcnal ad•crsc effect oa ll>c ~y Pun\ian1 to an 1ndcmru(auuon agrcem•m 01 tltc Company and u ch or ll>c !oundcn. JU&ntly aDd w:,·.,.Uy. ha>< .a.reed to 1JMlcmn1f, the t;ndcr,,.ntcn. and cxh of the
f IJ
GROUP LOSC OISTA.'-CE. L'-C.
'iOTES TO FINA."C"IAL STATE.\IE.,~Coalinutdl
Two \'un Ended April JO. 19'4 ud for the SiD< Moaths Endtd Jia u.arr 3 1. 1996 ind 1997
llnlonnatloft Rdatlns 10 1be Sine Montld Endtd JaoWU')' JI. 1996 and 1997 k L'naodlttdl
Nou H-Commltmfflu aod Coa~~Coalillood)
founder) ~ •if"'l io iadcauuf) the Compa.c), fo, acy .u,d all lc>skl clo,m,. ~Id. upcMa 0< lubthl>CS (1ncludmJ reuodl.blc lcS:&l f= acd u pc.,....I :,.i a rc.<wt o( aA) c~ am.ns ou1 of o, bl>cd upoo the f'aJ!urc lO d,.:losc the ,uuancc o( the ,twu lO the (oundcn ond Iii) ,n the c\Cct that u • rw,lt of ""> >111:11 clam,. the Cocnpuy IS rcqui."td 10 """" Jddu100A. ffl.Va or Commoft Stock. \he (ounckr• h»c •arced to dd,vcr 1111 cq\UI numt-cr or .iwu or C<r...'l\Ofl S:o.:k 10 the Co<r-i:an: fo, =cl~on
Thc Compill) u from rune 10 umc the subJtet of compla,nu or burauon •• the onlui:•t) = <JI ,u bunncu Thc Company bcbc,cs lh>I the la'""'IU, cbln-4 .u,d otbct ka•: manct\ lO which II hu become "'1~)<CI
uc not mat.mil ID the Company', fi1W1Cw cocdtuoo or rrsulu or op<nUOtl•. IM an c.mllllJ or furun, 1a .. -.u11 or clllffl t=loni ,n an ld«nc d<Cmon .,..,~, the Compally could ha'< a nataul ..i,enc cffttt on the Compally°i financul condiuoo atid results o( op<naon,
:"loet 1- Rdattd Pany T.......ctloo..
The Compa.cy has cntctt<I u,10 an l gRdllcru ,.,11, • rcaicd p;at1) " lucl: p,o"ldcs (or monthly rO)llllty paymcnn bl>cd :,;,on • >l1d1n1 >ale pcrc:cn~ o r w Company·, ll>Olllhl• act ,. ,..,_ RoyalUCJ pa,d (or t/lC
~an ended Apnl 30. 1996 :ind 199S rot.alcd lppf'OlltmUI) SI 11.ROO and S91.300 Thu •i,cem ot ~ 11
w c.uhc11 of the: foU0'"1n1 oca11m,ccs <• l thc dosins or an 1nmal pobllc o!rc1ns of the Con ""')',common .ioc.k ,n uces, of S-1.000.000. Cbl lhc we of <ubWll!IJ&II\ all or the Com;,,.n) · s u.cu or comm n >IOCk ro dun! pam or cuwn O(l,c cond!uoo,
n,., followina opuon ,nfonnaooo bu bcco adJU.SICd to rcflca the clw'lec required by lhc rneracr of Second n c Corporauon 10 !lio•·cmba 199~ In N~•cmbu 1993. as.,, 1oduccmcn1 to loon the Company S190.000, Ille C-pa:,y usucd stoc.lt opuoos to pwchuc: 90.SOS slwcs of the Comp&J1y's common stoek for SI .OS per slwc Opooc,1 to pwdwc 80.978 \mrtS or lb< Compony·, common S10Cl ha•c b«n c .. mkd '" of Apnl 3-0 .1996 Thc rcnwn,ni opuoos up,re 1n No,·cmbcr 1997
In Febnwy 199-1. the Compa:,• mucd 1,10d op11oru io pur.:lwc 19,Qj.l ,twcs or common Stoek for S ,3 per ~ io cmplo)= of the Comp.in) :,:ooc of 11,ac ort,ons "= ucrc,kd dunns lhc )C.V ended Apnl 30. 1996
In Fcbnu.tv I~, Ille Comp.u1y nJu~ 1tock opuonJ to pwd,au 47,635 slwci or colllffl'>O >IOCk (or S ~O per <hire 10 .,, o!fi:cr of the Comp,,n) ThtJc options "etc ucrmcd dunna the year ended Apnl JO. 1996
In 5<p(Cmbcr 199S. u an ,nduccm.:nr to loon the Com pony S 100.000. lhc Cocr.pony ,uuat uock q,uoru 10 ..
dirttt4t acd ac ~rfilutcd thud pan) 10 purch.uc J7.63S <lwu o>f the: Company'< commo,, <toel .11 SJ 15 pa '"""' ThcJc optJIIDJ upttt on Sq,ccmbcr .!O. 1997 :'-ooc of Ihde opuon, "CfC CAcmkJ . , Apnl JO. 1996 !ke ibol-o~ E
F·U
CROUP LONG DISTANCE. INC.
NOTES TO f"INANOAL STATE.\ 'lEl'"TS-(Contlouedl
Two Y, .n Ended .April 30. 1!'96 and for 11M !'/in• ~o.,ths £oded J anuary J I. 1996 and 1997
(loformatloo Rd&lioc to 1M Nia. Months Ended January JI, 1996 and 1997 Is Uoaudlt.td)
Not, J-Stod< Oplio~Cooliouedj
At Apnl 36. 1996. thctc were uaa<rriscd options to purclwe 76.216 slwcs of the: Comp>ny·, common stock ouuandine_ (Ill c>f w!uch wen, cxcrc1uble) u follow,.
Dote Op!!"! Cna...c
No~ember. 1993 . • . • , . . . • •• . . . . • . . . • . • . . • .. • . Fd>Nar/. 199-1 • • • • . , • , • . • • • • • . • • • • • • . • • • . • . • ••. . ••• Se;,t=ber. 1995 • • •• •• •• •• • • • • .. •. . • • • • • • • • • • • •• • • • •
Nou K-Suppkma,w C..b flow loformadoa
SurplemaiuJ dudO<Utt of cub now ,nformwon
UJb ~d durina the r= for 11UttW
Cub I""~ dunn2 the yur tor wcs
Noncuh ti!WlCUlg ilCll,1ocs; Pur:hase of suxk Les,· Debi 1ncumd • . . •
... ......
Cash payment$ for Ille purclwc or icock ... • • • •
Property and cqwpmcnt Kqu.it<d U1lda c.tpJtal leu.: obha1uons . • • . • • • • . • • . • .
......
wu.ancc of 200.000 Jbata m C01U1cct100 ,.,th acqwsiuon of AIT (see Sotc 0 ) • • • • • • . • • • • • • •
Nou l,-..Settkmcot AVNJDents
Opt-. o.u........, i:u~ SI.OS s SJ S3 IS
9.5)1 l?.05-I
::1ill 76.ll6 -
.!m S 37.612 -s 8Jl2 -S 32.000
2-1.000
s 8.000 -s -5 ~
!!?! s -21.687
s S.000
s
s
s lSSII
Sl.-!00.000
In June: 1993. the Comp>ny unled ccrum tnDlaa daputcs wnb ATclT and uccui.d • unleA1Cn1 •aru meat wtucb resu!tod 1n • pin of appro.uw1cly SS00.000. The Cocnp.tny then paid down the apud upon balance 1n (ucal 199-1 and 199S IO the prw:nt bll>nee of 1ppco,.una1cly Sj48,000 The Company 11 cuncntly 111 <kfault under ti$ p>ytncAt obha;uiocu 10 AT&T
Noce M-Equlty
The Company as aulhon1cd ao wuc 1.000.000 ~ or preferred stoek. none of wbicll bu been iUued. "the prden-eJ IIOCk. If 11.11d .. -hell IUUM. LI cnutled UI ftlll\'e l MncumuJiuve diYidcM 6! Sl.00 pct lhin. ind 00 cbY1dczx!s may O< po.id oo the common .iock dunn,11 >.ny fUQJ ya, Wlul such SI 00 per l.b.u'c cb\idcnd tw been drtw-ed IC prcfun,d SlOC. IOldffl.
On December l. 1996. lb< Bo,rd of Ou~ton approved >.n mi:ru.sc 10 authonzcd $tock. wbjcc1 10 stoekholdct "l'!)'Oval. IC Id rrulllon slw-cs. Commo,, stock 11,-ill be ,ncrttled from S.000.000 to 12.000.000 slwes and prefcmd tlOclt w,11 inctcUC Crom 1.000.000 co 2.000.000 shNCS.
F-16
CROliP LO:-'G DISTA.'/CE. t-.:c. .SOTES TO FIJI/A:,iCIAJ. STAT£.\IE.'l"J'S-{Coatlnutd1
Two \'ttN Ead«d April JO. 1996 a.ocl ror Ill< ;\1 11t
~lonths Endtd JanUAr,' 3 1. 1996 ud 1.997 (lnfomr.atloo Rdlwtt 10 Ill< Sbw \ loollls Eodtd
Juu.ary 3 1, 1"'6 and 19'7 ii Unaodllcd l
.soc. -.:- Risks .and l:nc,mauitla
Th< Comp;uif• ~ 1tt b&>cd upon ,pcmuu '""th• bmncd m,ml,ct of 1&ns-<11iu:,cc :uncn ,.1,o pro,tdc xcb, 1<1 phcM hoes an.! rn:wn,u,on &ohuu The camen •lu, pro,Klc call data rcconi5, and ,n the
c.uc of Tcl-S•vc. thc c~ct 1bo bills thc Comp&nf1 CU>U><!Kn OD the umlpa,I) ; ~ Tbc C:,c,p.ae) ti
dcpcllCcr.1 upon such amen fo, <uc:h Kf"l:cs.""" thc:c ti a l'QSOl>Ablc pou,bdn) th.ti !her,: could be cqu1pme.~> filduru OI' <Xhr.r \CfVICC uu=puor» !hit could m.uawlr .&!C«t thc COC!ll';ui~ Soc~ dc:b•·• , CNld :uull "' poscl')Oed oc pou1blr lei! wcs. "'hu:b coold -encl) affect opcnllllS r=lu
The Company'1 lffl0rt1u:ion method fer CUSIOmct i<:qllllWOl'I cosu "buc<l"" ....,..,..-ncr.t', bcil dllM.a:e
c,! lhc pcnod o( tune and JJnOW>U of tt•cnuc to be dcmcJ from cKh apphublc cu.1omcr buc The Compan) c:aru.o1 pmlm c,momcz aanuon ratd "'llh .ibsolutc ccnauuy"' u 11 ru>O<W>I, poll1b'c thil s..:h amorouuon my nccJ to be UIO'USCd ,o lbc fl.'NK
S1...c• OptUJII P!mi
le October 19%. the Comp.my, ooatd 01dir..:1oru;pro•cd • S1ocl: Opc,oo Plan tthc "Plan"> The Pw, ,.'" appro•td b) the ~ o! the Compa:,) u, FcbN>:') 199'1 The ?\.an pc:muu the puooi o! stock gptions to clJJiblc p.1nmponts Th: Pl.m pcnruu tJ,c, pnunr of bol/111,cenu,e \lock opCJOW /v.luch""' cnutlul 10 CUU!D fa•"O.-.ll!c trutm<nl uoda I/le lnlfflW Rc, cnuc Coor OI 1986) >nd nooqwh6cd \lad "Pbon• (LL .
op,<lClj , luch an, 11'11 tnle!ldcd to be t.'l<mUV< Jtoek c poon,1 A IQW of r,oo,ooo ffl.lln of Cocnmon Sioc.1< .. ,u be l-Vlllablc IOI' "'IIJIJICC Emplo)cc, .. ,d ccruutw u or the COOlf'IA) and III wb<1dWld ..... w11blc to be sc.lcctcd 10 rccet-c op,ON 1bc Pw> &!so pro, Ide$ fot tbc automauc v,>11• of •toe• opuor.s 10 noll<fflpl~ ce member• of lbc C0111p:iny's Boud or D11K10B :-loll<fflplo>cc dl!cc1et Cll'U°'" .. ,u be sun~ puniw,1 io 10 au~ noocbocrcuo,wy fonnula ()pooM to pw-...lwc ;an aiv<1.ie o! 5!6.500 slwn of Commo11 S1 c l ha,c bcc11 utu<d un~ lhc P11UI
Acqi,uu,oru
In May 1996. lhc Comp.in, rurcluucd. roc ~1.000. the su,,;L ...s "'>Lt> 100:lwins tbc i:usioma-b.uc. of Gulf Cocnrnwmauo11S Scr-acr Ice 1··Gu1r'1 u, cocuidcrauon or S'.J.000 •• <ash and the .sJUmroon of• promt~ note 1n tbc pnnc1p,l amoun1 or SI l.000 Qui! hli ,.,uduai cquipmcot "'bldt .aio-, 11 to :>:t •• 10 tO~IUUO!W call b>ck and call lhn,uJb ptCMila Th< prom."'><) CIO<C of SIS1.000 ,, pay~lc monlhl) 1r1>Wlfflffll• qi SI0.000 Ult'OU$h Fcbtu.a:) I. 19'1S
In Joi, 1996. thc Com;,&:1• cn1.ttcd mto • P--=ll;uc Asrccmcr~ anJ Pw, ,r E.Achangc "'1th Ao'<n111tU-1n Tclc(om. Inc l"AIT' 'I "'hereby L'>c CompAA) purctwcd 100'\ of the common llOCl of AIT Mr"• r.on f>etlJUd bucd r<Kllcr of loo• dauncc commwucauoa ;cr.,cn Th< ~ pncc .... c-ompntcd or SS.1" I : 30 m cull and Z00.000 ratnctcd ,twr:c, o( common Jtoel or the Compan) In December 1996. lhc Comp.a:" "itccd ,.,tll lllC rormcr IAlldloldm of AlT ll) c.w.cJ JS.000 ol tbc $0.000 .iwa 11u, .. .,. c..b~.1 to
the holdbioek rro•u1on,. tn lctlkmcnt of ccrw11 (Wint b) the Cocnpan) 11>1nil the AfT Jltarchol~
A CJ/:.U,:,0,, FWJMUt.t
Th< Cocnp~, . 10 fiJW>Cc the AIT acqui,mon. <Uucd • noo: payable IO Tcl,S»c u, Jul, 1'196 for S5.J:l.13'l Thu n,31e be.\.-, mtana >16$~ per >11numand fflJllll.'d 10 July 1997 lnrluJcd 10 lhc (-au o!t11c oo<c >re an,ounu clue to lhc lcnd1n1 ~oon u Apnl .10. 1996 th.la •IVCCJllt S250.000 TIICsc unaw,u >re rdlc..cd Ill .ccou~u p.iyib~ •• Apnl 30. 1996 T 1Dduct Td·»'< QI pro"k!c lbc tilWICtnJ DCCdtd to
CROl:P LOSC DISTASct. ~ C. ' OTES TO roA.,Ct.\ L STATE.\IESTS---'Conlinued1
Two \ 'u n EndNI April JO, 1'96 and for the 'IM \loolh< Eodcd JamlU) JI. 19'16 and 19'17
I IAfomutloa Rdarln, to lbc :0-lM \ lonlh> EndNI J1nu11") 3 1. 1996 and 1997 i> l lnaud.il<dl
Sot, 0..-S..b<lcqu,nt E•rnb-1Con1lnu<dl
pwcl\&1< ArT. the Com~••> ruucd ~ w&mull 10 purdw" 300.0CIJ uwc, ol <orrunctn •toeL 01 the Cmnp.ln• ai
S5 7c per Wit ~ • '*lUTUI 10 l"'f(lwc 50.000 111:uc> ,( :otr.mor llOd o l the C >mpa,,, .I! S5 00 per U"~ Boch .. ._-r.u,IJ .ire uomul>k L".rous/1 lwy ?Ml >nd sui,,«, t.> , ctwt> u. :1ul11Cll n 0hu
i'>e Com;,,tn) < lo.n • ireancnl wrlh Tcl ,S.-e wu amel>dcd •• Fd:ru.u) 1"9· t<> p«'l'11k for the ttp.1yrncn1 of thc AC<l,1111uon Loan ,n =llll> p&) mcnu of Sl~.000 plu, ,n1eru 1 ~i••=s .aliu Sq,1cmbct 199-p cmdtd dw dw of!'<ru11 U CllmUma'~ b)' Apnl 15. 1997. IJI 11'.c ••cnt tlw 11111 offm::1 u COi COO-'Ur:una!ed
b> ,udi d>IL. the ,,,.,. 1pttme111 "ould rc,cn ro the onpnal tcmU anJ obl1s.1:c the Compan) 10 P,) thc dJffcm1-< be,., • .,, the •rpcgaic amount of payment, m...sc and the •ur•111c .unouru 11 "'uuld ht>< p.lld ~ u :nadc moruJ,1• Ill' mcnt• f)( S$00,f'ICY) srncc Juh 19% .nJ 10 conunuc 10 ~ mc>cthh CQ\lncn" I SY'n.OCJfl lhroua:11 Jal) 19'1-
ln lonlW) 1997 the Ccmp111y pun:hu<d !rom Gr .. , ~ Lei UI • CUilOffl<t ~= coomuni; 01 •~prnum11ch -.,)JC) cuvomcfO th.11 ,..,, sub,tcc1 h) ,n , grccmenl b<,,. cc, G"•' t..al.n ,nd Tcl,S.-c and 111 • ,...:nn, ,~ ;>W<h.\" :o> Olll wrn of Common ~1od of T cl-Sue ,n ,ons..;.r>11oc or S 1.;00 lJOO ,n asJl In «nn«t1oc .,.,th i...cb a:quit11,on. lhc CGmpu• b«ro .. e,1 s ,,::oQ,c,'lO rrvm Tel-Sue ln J.inll.lt) 119- Tel-Sa,~ re:,crell.ucd the Tcl-Sa,c \l.'&m111L• from the Compony tn con.,idu.mon o ( S U00.000 ll1'd crcdJtcd th< Compon) .,.,th ,uch amount / S 1.21)1.000 1owatd ll'.c Grc,r Wu a.:qumoon •nd S600.ll00 u,,..ud the Compan, 'i oc.L<W>du,, pnnc,p&I ~ • .mda the A.ajwwoon l..o.\n1 TI-.c S600.000 l'C'JIIUJOll ol <lcbt ~ bttn OIXCVntcd ro, » • conuibuuGt1 to p,uJ•lJK.ll'IW ~ Tcl-Sa,c ~o ,.r11e h.u bttn .. "i"'J to thc '""omc, bu< ocquir,J from Gtc~I IA:a
McOIW:f P.:wibk ConH rn,,,,
lo )II/IC 1996. 11'.c Compan, con•cttcd ccrwn :w:ounll raylbl< 10 WorldCom .1uo • ~oouu.io note tn the pnnc1pa.l amount of l566.917 be>.nni 1nlUCit at • me ot 15._. pct onnum In 0.U-,,bcr 1996. lhc C<Jfflt'.\11' ancelled the pnor n()(c and coo•cttcd Mldloonal ..:counu pa}lblc to WorldCom 1n111 a 11nrk ponuuot) ootc 111
p,nc,pal l.!DDWII ofSl-153.:'98 bc#'ln11nic:c.1 &1 the rat< cf 16'Y per annum Thc pn,ma;(X) IICllc pro'1dci for lh< Compan) u, make equal month!)' p,1yme,nu of SI l).7SS III WorldCom unul D<=mbt.r 10. 1Q9-
Pllbh< 0/fuv,, The 80lltd h.u autbontcd the lihn; of • regmnuon ,uie:ru:n1 re!Auni 10 • public o(f<nni of I ,?50.000
•lwu or Common SlllCk "'1d l.1.<0.000 redwmblc common \lock purch.uc -. .unnu l"R<d«mahlc Warnnu I lo Mldluon 10 thc o.s:w,c, and sale of l.1j()_U)I) Jl\an:, of c-mon Stoel.. up lO IS-.,00 lddluoaal share> u.!10t IS7.500 lt<lecm2blc \\&m111u => be w,ld ti) thc unJcNntcn ;,unu.1J11 ,., an o•cr-allotmen1 opuon
\ ott Pa,ablt
In Mi) 1996. the Comp.any cnlered tnlO .an 1pccmcn1 v.1th • lin.tncu.l 1nsu1uuon 10 borrO" ' SS0.000 The '°"" beau in1.au1 ai the pnm< r:alC phu X- Qftd mAlltrn on ~toy 1. JQ9- The loan" colli!Ullh«:d b) ~I the U fflp.lJI \ ·, cq1.1pme:u. fflXNIICI" (um1111tt ond tnt1ni;.blei anJ 1> pcnoNlh a,w.1Ltccd b~ thc C .n:p,n, , p,csldcnL
F-18
llo.ud of Duccum Groop Lona Dnw,cc, Inc
\\ cha'< a...Slkd the oa:ompo.,y1n, liuional S1&1cmct1u of IDComc .and Direct OpttaW>I E.pcnin c.c!,w,c of awru noc com~ io L'>t propol<ld fUNrC opcnuo,a or the a n:Gmef bo.c of A1hcnn,.-cs u, Tcl«om. I..: for cc cf 111c two tcm ,n thc pcnod ended Apnl JO. 1996 Thc1< =••1> .n thc rcsp.l!Wb,111) or the INll,IJCm<nl or Group Looi o..w..~. f1I< ()ur tapocuiblh1y II IO Uprdl 1n or,.- on thew: lllltfflCIUS b~ oc, our auclat>
We~ ou; oudlts 111 ...:conbncc ,.,th ~ncnlly -epttd •udaune 1!Alld.ud, Tho,c 1t.ltldu;h rcqloll'C tlw we pion and pc:r{orm thc &lld11 IO cbwn =-blc wunna .abol.l ,.IIC'.bc: the swcmaiu a:c free or nuicNI 11Uuwemcn1 All iudit includes <U11Un1n1. on • 1c1t bu11. cvi~ncc 1uppon,n1 lbc fflWUALl .and dlt<loluru "' lhc 1wemcnts An :wdlt abo ,ncl...SC. aucu,os iu .aa:ounuag pr.oc1plu u\Cd and 11sruf1C1nt e1t1aa1u in.adt ~ nwuJffllCnL u " di .u es:ahuunr 1bc o•-cr>JI pruenuuoa of 111c <1.11emcn1> Wc bclo.-c 1tu1 our aaw!iu l'fl'\ldc • ~le bun r« our cpu,..,,.
TI'< accompai,y1n1 JUICmcn . ... ,. pttp.ved for L'i< purpo,< of :ornpl>,01 ,.,111 lllc n,tc, .and r<"11auom of t.'x Secunors lDd E,dwli• Coir.mauon ((« u,chwon 1n Ille re1utruuon 11•icmo1 on fom, SB.~ or GrO<Jl) Lon& Duuncc. Inc , .u dcw:nbcd In . ..<c A or.d 111< not 111:cJldcd ~ be • C'llllp,ccc s:r•=uuon ot "'1•cn:w"CS ,n Tc..c..;«n. l°' s rc,caues md cJrcn5oes
ln ou: C!'llUCG.. thc lUICfflaU referred IO ab.>-c :nice• faul) . 1n all nulCtW relpCCU. thc o;,cnung 111':0mc .and d1rcc1 opcrat1111 ••pcrt1<cl dc!oCnb<d •• N,xc A or Ad•'Cllwm ,n TckcQCII. IAC for ach of the rv.o ~un ,n lhc pcnod elided Apnl lO. 1996 m cCl<llormity '&'Ith icocnUy xccp<cd ora,c,nun11 p1111e1pl<.1
F-19
ADVE.,'TURES IN TEl.ECO~I. INC
HISTORICAL STAT£.\fl:l','TS OF L"IC0.\-1.E "-''1> DCR£CT OPERATING EXPENSES EXCL USJVE OF rrE.\tS SOT CO~lPARABL£ TO THE PROPOSED ruTUR£ OPERAnONS OFTRE Cl'STO~tER BASE
Rcvc,,ucs • Direct opcnnoa UpcllkS
T <l(Jlhone c.tl)<l\iC
Opa,wni income u clwiY< of uenu nae comparable ro tbc proposed fun.-rc opcr.,Uooi of the propcny
Noto A-Orpniulloo aod Bash of l'ram11u:lon
,., l.lw \ ' or t:.oo,11 AprU JO.
!.!!! !!!.! S2~-<oZ.517 SJ 1.256.36:
17.606.SiJ S.:!95~i
S 6.89S,9.iJ S l.961.12.S
AdvtnlW'Cl-lD•Tclca,a,. IOI: (" AIT"') 1$ > coq,onoor. ronncd 10 hold• CU)!Offlct baJr. ('41\,;:h" broken down by group, ctllcd "'paroooa>") tha1 "'u oc;qwcd !men • dJvu,oo or .uillthc.r cc!cco=unu:~uOD> company 'Tbcsc opcnuons ore not dJYtS1bl< from thc w-rcr co~I)' IIT.d CO<:lplcic tin.ancal ,nfomuuon II no, rcachl> >V21Llbl< for A!rs opcrsuons nar ,. u CQmp>rlh~ to the pn,po,<d fu!W'C op:nUQt.t of tlus cu""'11cr buc. Accoolu1,1y, 11 .. imJIDCuablc ro prepare the full financw •=u rcqwred b:, R&:,,buon S-.X. The 1udJtcd 11aicmcnu tocludc only the dtrea ,ocornc and duect opcr.uoa upcnsc of >Cf\·ic1n1 th» ous,omcr lwc: /\rnoun<S of ullu,a i;cncral, a.nd .tdmrnJJlnll''C ap(l\k'I upccted llftcr the ,-:quwoon .,. rcn~ lfl the F'O {om,a
JUtffl>C<IU of opcnuons
No<~ 8-Rovam.a
In 199S, the SCf''ICJDi of eawn customer paruuoo, bcpn >t different UtlJC'I thro<isJ,out the. y,w Ho,.e~cr, dunna 1996 the N/OfllY of these eustomtt paruuon, ""~• ...-viced fno the cnurc )'Uf As • rc.,ult. r;:,icouu ,naea<Cd s,iru6-tly 1n 1996 u compared ro 1995
F-20
CROL'P LONC DISTANCE. INC.
PRO f'OR.\IA f'lNA.NCIAL ST A TE.\IENTS
In Jul) 1996. Group Lona DWAJ>tc. Inc:. ( .. GLD' ') xqwmi Ad,cnr=.,,o, Tclceom. In,: , /''Afr') "'bo,e
.wcu ~ 11>utcd of • cuiiomcr b&k o( a;,ptoltlll.ltcly 30.000 cu.1omcn 4lld rdakd ~u r=1vlb1c
The follOWJn5 un.udJtcd pn, (onna ii>tcmcni of o,pcnuoM for the YC41 ended Apnl JO. 19'l6. ••d thc oiru r:,onths coded 0ccffllbcr 31, 19% :itc pr=nted u if Group Loi:s Dnw.:c !lid .icqumd AIT oa ~II) I. 1995 Sc1l1111, iUcnl, and ildauntW>1Jvc expenses h,ove been >dJUUcd IO l'<llecl thc inaancnw COSU IO open!< thu c11>toma ~ wnlun GLD'• OfllAIUUUon.i JlnJCtW'c. No pro form, bolll>C< U>c<1 1w been pre>en:cd 11nc:c u,c nc:qws,uoa occu!Tal pnor to Dcc<.mbcr 31. 1996
Pro form., tnfomauon IJ 001 ll«CSJmfy tndJc.w\.'C of wluJ dlc Cornp.n) '\ r<>UJU O( OS)CmlOM XruaJI) v.·ou!d have been 1( lhcJc truS>ctlon, hlld tn (1C1 ocamcd on the d.11e3 111dn'.ucd
F-21
CROUP LONG OISTAJI/CT. INC.
PRO FOR.\tA STATL\IE.VT or OPERATION For 11M Yur f.:ndod Apnl JO. 1'96
/Vnauditod)
~,coucs
~•of.ales
Cil'Ol• ~oli1
Sclhn1. ,c.,cnl and admonmr.UJ\C c.<pclliel
Int.au! cxpcn,c Inell
E.anu.op before ,ocomc wa lnccomc LU Up(IIIC •
Nd CN1Uop llosl)
Eanunp (IOU) per COIMIOI\ and comfflOQ cqu,-olcnt .,..,,,
Wo1gh1Cd >•cnsc nwnbct of <hatu OUUWldlDI
c,....r-, o;.._.
lac.
S I 2.)6.:. 6,1 J
9.009.131
lJSS.51~
2.968.597
19,050
367.865
169.900
s 197.965
s 10
2.0U . .s7J
Ad't'fflhlte m Tthcta l-..
$1.s.$01.S 17
17.606.57~
6!9S9Jl
6.89S.9-!l
S 6.l!9S~l
s
600000.I J '35 0'16(~1 IUIJI()) ZOS.3JSl4) l6$.0001Sl
.:..:.::.oooc6, ~~7)
(6.6,:2.~)
548.«>6$(6)
S17.191.ll01
I) To record co1111111111on cxpc""' payable to •acnu con " 800" and ··1 plus" re,cnucs
S36.&67.160 U:o.615.705
10.2.si.~ss
9.169.162
.IC,1 .050
718.56S
s (9"..l2lJ
S I Ol)
21 To record provulOft for bad dcbc on addu,onal rcvu,ues. lbu pn,vu,oe ,, baud on lhc Com~,· , twlDnaJ upcncxc of 31\ of re...,_
) ) In COMCdJOn with the AIT AcqumDOn. the Comp.iny entered 1nt0 • nw,1gcmcn1 conln<t .,,th Tcbupc lntan&t>onll. l1IC. l''Tc~"l. punw.!11 IO v,bkh t.bc Compon) paid• fee o! 1.5, of IPO" IZIOAlbl) bolhn1 10 T~ for ow, ,cmc,,1 ICtVICCS. u,clll4ml lwldltn1 o( 1nbowid CU1U>mct 1CMCC c&ll1. proccuina o( c1momt'f adJ<UUn<nu. colc.ul.uon of cornnuu,o,u and •-d:,uoon of .,.,,, ocrouna The nwi•aemcn1 coninc, ,.,._. 1ttm1n,Led 1n Sqxcmb<r 1996 The pro forma ~- 1w bccu ..,, ... 1a1 to rocord • mAMim,mt fee upcruc equal 10 1.5" of rcvcnUC'S ,n ~c ,.,lh the 1MD1gcmct11 corura<l
.:1 To rocord payn,11 upcmc for ••" cutlOfflCt ICMC:c. accounw,a and IIWll&t1ncn1 cmploye<.1 1.0 be luttd afltr the .. p11111oa of the IIWll,Cmcnt conna ,_ l abo••l
s, To record 11111«1i-. ielhna, cc,aaJ and &JIIIJNsitabvc ca~ Thu ..-.t>t 1n:luda c<llm.tt.cs for 1dcphonc ftSICm upp><Scs and rcl.lud •~ COfflj)Ul<J ,y,tcrn up8JllO(l, aihCl1.LJIGS profctJHllul (tu a/Id oihc u.:ms
6) To re.cord lfflOltlDIJOO apc,llC o( lhc AIT c:ustOn:1C1 base ICqllm!J04\ con.
7> To rcccrd •••= on tho Acqu11J1>on Loan 8 ) To rccon! Wet on ,ddillOQI) ptt•t.u u,come
f .z:
GROUP LONG DIST A.'ICE, lN(;.
PRO FOR.\IA STA.TE.\t ENT or OPERATIONS
For Ill~ Nine Moaths E.ad«t Juuey JI. 1997 (l]naudittd) ,__,
SYkllM.O• Ad~ ln
"'~ T- lw.
Rcvr:nucs S 17.098.542 Sl.549.8SS Cost of .ales 12.S 12.9-13 I.IZO • .us
Gron profir .i.sss.599 J29,.U)
Sd hns. ,.,.,<:n1 .,,d .ldnulUSIDUYc upc:ruc. 6,J26.llOY
lntc1'd1 «rcrue- net ... . . .. ...... ... 307.392
Eam.rnp bdarc !~me wc:s . . ........... (2,148.~2) -129 . .:43 [nc:Off".c w expense ..............
Set CltttUnp .S /2.148.~ s 429A43
E.aminp per comllllln L!ld common cquavalcnt s (.97) dratt .. .. .... ....... . ........ ...... ..
Wcia)lt.cd ••=~ number or slwc> ou1JW>di.,i 2.222.91 7
...... ,.,... Ad .... lWII
s
JS.579 ( I) -16.-197 (2) 23.248 (3) 30.420 (4 )
lSl.500 (5) 28.2l9 (6)
(517.~$3)
S /517.4~)
38.90)
I) To rtcotd co11unJ.Uion upcnse payable 10 •&cnlJ on .. 800" and · ·1 pl.u" re\Cnuc:s
Totll fMFWIU
S 18.64S.-ll30 13.633.}88
S.OIS.042
6,91S.SSJ
33S.6JI
(U36..W2)
$ (2.2)6,.;.:2)
s (.'99)
:0261 !IZ2
?) To record prov1Ron (or b..s debt on >ddtaon&I revenues Thu p,ovu1on" ~:d on the Company·s hutonc&I c~pcncn:c of J~ of revrn!IC$
) J In conn«tton wuh the AfT Acqumaon. the Com~y cniucd into a tnlll>lic::mcnt .:ontnct with Tcl.lc-.qx. pursu.u,1 loO wlucb lhc Company paid • fee or I sq, or aross monlhl) bilhns 10 Tclsupc for nw,qcmcni scrv~. The IJWl.lge1Mn1 con110r:t was tmninat<d to Scpccmbcr 1996. The pro lomu pres<nWton hu been ldJtar<d lO roco:d • ounagcmcnt fee c.tpc:nsc c,quoJ to l.5"1s of revcouo 1n ~ wtlh the manqc:mc'ftl con.tract.
4) To rtcud ausec!W><OUt icluna. 1,cnenl L!ld odmlnuttauvc upc,uc.> Tius amouni ,nc:Iudd CSUfflJteJ for tclcphon: tyit<m upgrades L!ld n:Ial.Cd charges. compula sytt..-m upv,adc$. advctutne. pr.>fcat1onol foes and olh<r itcW.
SJ To record lUIIOtULAlloc u pciuc of tho AIT C111S1omcr base acqu,siuon con
6 ) To record 1n1.<1d1 on tbc AIT Arqu11mon Lou.
~XHIBIT D PROPOSW TllTFF
12
GLD, GROUP LOJIC OlST>JIC!, fNC, ORIGINAL SHEET 1 SOUTII DAJtOTA POC TA.JttPP 8 0 . 1
TBL!COtQ(l7)flCATJ.O t_u:r n..s;u IMitf
TITLE IHEtt
S0QT11 PYOIP. tliJ.'99!Q«llllCl,TI011f 1?JtIU
Thia taritt cont.alna tlle daacriptiona, req-ulatlon~, a,nd
rates applicable to tba turnlablng ot ••rvlce or tacllitlea ~or
Taleco .. unicationa service• furnlsb.ttd by OLD, aroup Long
Dist.ance, Inc . ("GLD" ), vitb principal o!fic•• at. 14 S 1 West
cypreaa c reak Road, suit• 200, Fort Laud•rdal•, Florida lll09.
This tariff applias f or servicas furniabad wit.bin tba Stat• o f
south Dakota. Thia tariff ia on file v itb the South Dakota
Publ ic Utllitlea coaaisaion, and copias aay ba inapec te~, during
noraal business hours, at. the coepany•s principal place of
buaineas.
ISSUED: Kay 5, 1997 EFFECTIVE: ISSUED BY: Gerald K. Dunne, Jr., President
1451 weat cypress Cr•ek Road, Suit• 200 Fort Lauderdale, Florida 33309
GLD, GROUP LONG DISTAJICE, IMC. ORIGinL SR!ET 2 SOUTH DAJtOTA PUC TARIPP NO. l
TELECOKKQlfICATIQNS SEBYlCES INU[l
CONCtJllRING, CONNECTING OR
OTll!R PARTICIPATING CARRIERS A.ND
BILLUIG AGEH?S
1. Concurring Carriere - None
2 . Connecting Carrier• - None
J. Otha r Participating C~rrler• - Nono
• . Billing Agents - Nolie
ISSUED: Kay 5, 1997 EPl'ECTIVE: ISSUED DY: Gerald K. Dunne, Jr., President
1451 We•t cypre•s Creek Road, suite 200 Fort Lauderdale, Florida 33309
GLD, GROUP LONG DISTANCE, I NC, ORIGINAL SHEET 3 SOUTH DA~OTA PUC T~IFF NO. 1
T&LBCQHMONICATIONS S&RVICES TARI17
CH ECK SHEET Sheets l through 31 inclusive of this tar i ff are effec t ive
as of the date shown at the bottom of the respec tive sheet (s) . Origina l and revised s heets as named below comprise all changes from t he or igi nal tar if f and are c urrently in effect as of the da t e on the bottom of this sheet.
SHEET
l
REVISION original Origi nal Origina l or:ig in" l Original o rig inal origina t Orig i nal Or i gina l. Orlgina l Orig i nal Or!qina l Original Origi nal orig i nal Or!qlnal Original Origina l Original Orig i nal Origina l Origi nal Or iginal Orlg Ina l Origina l Or iginal Or ig1nal Orig ina 1 Or i g i nal Orig inal Original
2 )
4 5 6 7 8 9
uo u 12 l)
H 1 5 J6 17 18 19 20 2 1 22 23 24 2 5 26 27 2 8 29 30 3 1
• Uew or Revised Sheet
ISSUED: Hay 5, 1997 EFF ECTIVE: ISSUED BY: Gerald H. Dunn•, Jr., President
14 51 west Cypre,~ c~aek Ro ad, s u i te 200 Fort Lauderdale, Florida 33309
OLD, GROUP LONG DIS AJICE, INC, ORIGINAL SHEET 4 SOUTH D>JtOTA PUC TARIFF HO. 1
TELECQKHUNICATIQNS SERVICES TARIFF
TABLE OF CONTENTS Page
Title She e t ......•......• . .............. . ......•...•..... 1 Concurring, connecting or Other Participating Carriers and Bl 111 ng Agents •...•.•.. .•......... •......•.. 2 Check Sheet ..•......•...•............•..... . .•... ..•. •... 3 Tabl c o f contents ..................•......•...... ..• .•.•. .: Tarltf rors,1at •• .•................. ... ....•......... •. . .. . s Symbol o ..•... .... ..... . ......•..••..•...•.. . ............. 6 Sect ion l - Technical Terms and Abbreviat ions .. . • . ...••.. , Section 2 - Rules and Rcqulations .... .. .................. 'i
2.1 Undortdking or th~ Co111pany ..................... 9 2 . 7 Use or Servlcoo •..•.......................•... J c, 7 .l L1abll1ty of the Company .. . . .... . .•.•. • ..••••• 11 2.,: Rcspon!: I b i l I tics of the Cust oi:,cr .••. ....•. ... . 13 2.5 Canc rllat1on or Interruption 0 1 Servi ce ..... . . 1 S 2 . 11 Cr eult Allowance .................. ....•... .... 17 2 . 7 Restoration o! Service .. .................... . . 18 2.8 Deposit ..... . .....•. . .. . •...............•.... . 18 2 .9 Advance Payoents ....•...•. • .. . ............ .... 18 2.10 Pay111ent <1nd Bil l ing . . ... .... ..... ............. 19 2.11 Collection Costs .. • ....•...•........••...... • . 20 2.12Taxus • .. ..•• .• .............•................•. 20 2.13 Lato Charge ............ . ... ..... ....... . .. • •.. 20 Z.14 Re~urned Check Chargo . ...•.....•.....•. .•. •... 20
Section J - Description o f serv lce .• ... ... .. ...•.....••. 21 J .I Computation ot Charges .•......•............... 21 J.2 Customer Co111plaints and/o r Billing Oisputes . . . 22 3. 3 Level o{ Service .................. ... . ....... . 23 3 .4 Billing Entity Conditions ................. ...• 23 3.5 s ervice Of!erlngs . . ........................... 24
Sect ion .;- Rates ........... ,, ..... •......... . .... .... . .. 29 4.1 1+ Dialing .................................... 29 4. 7 Travel cnrds ..............•............ . . ..... 29 4. 3 800 Service . . ...........•.....•...•..••.....•. 30 4.4 Prepaid Calling Cards .....•••.........•....... 30 4. 5 Rate Periods .....•.•.... •..•..........• ....... 3 1 4. 6 Directory A-;sistance •••.•.•...............•.. . J I 4. 7 Returned Check Chargo .............. .. .. . ...... 31
ISSUED: Kaf 5, 1997 EFFECTIVE: ISSUED BY: Gerald M. Dunne, Jr., President
14S1 West cypress Creek Road, Suite 200 Fort Lauderdale, Florida 3330,
GLD, GROU~ LONG DISTANCE, INC. ORIGINAL SHEET S SOOTH DAlOTA PUC TAJ.IPF NO. 1
TELECQKMUMICATIQMS &Ell.VICES Tl\8IPP
™ IPP PQBMT A. Sheet llucaberinq: Sheet nu111bers appear in t he upper
right corner o( t he page. Sheets a r e number ed sequentially. However, now sheets are occasionally added t o the tar lf ( . When a new s heet is added hotwee n sheets a l ready i n ertect, a decimnl is added . Fo r e xacaple , a ~ew s heet a dded between paqes ll a nd 12 would he page 11.1.
e. Sheet Revision Nucabers: Revision number s also appear in t ho upper right cot·ncr or each sheet where app licnble. These numbers arc used to Indicat e the caost curr ent paqe ver sion on file with the Commission . For examp le, ~th Revised Sheet 13 cancels 3rd Revised Sheot 13 . Consult the Check Sheet ror the s heet s curr ent ly In affect.
c. Paragraph paragraph coding. next higher level:
2 . 2.1 2. 1. 1 2.1.1.A 2.1.J.A.l
I/umberi ng Sequence : There are nine levels o f Each level or coding is subservient to its
2 . l. l. A. l. (o) 2 . 1.1.A. l. (a) . I 2.l.J . A. t . (ii) . 1 . Ci) 2 . J. l.A. l. (a) . t . (I). (1)
D. Chock Sheets: When a ta r if f filing is made with the commission, an updated Check Shoet accompanie s the t arif f filing. The Check Sheet lists the sheets contained in t he tar1tt, with a c ross reference to tho curr ent Revision Number. When now sheet& arc added, t he Check Sheet is changed to reflect the revision. Al l revlsions made In a given filing a r e designated by an asterlok ( • ). The r e will be no other symbols used on t his sheet IC these are the only changes made to it (i.e . , t he f ormat, etc. remains the same, just r evised revision levels on some sheets) . The tariff user should r efer to the latest Chec k Sheet to find out i( a pnr ticular sheet ls the most c urr ent on Commission ti le.
ISSUED: Kay S, 1997 EPP~CTIVE: ISSUED BY: Gerald H. Dunne, Jr., President
HS1 weat cypr111s creek Road, suite 200 Fort Lauderdale, Florida 33309
GLD, GROUP LONG DISTANCE, I NC . ORIGINAL SHEET 6 SOUTH DAKOTA PUC TARIFF NO. 1
TELECQKKUNICATIQNS SERVICES TARIFF
SYMBOLS Tho (ollowing are t he only symbols uced for t.lle pur pos es
indicated below:
(C) 'tO signify c:hange in regula t. ion (D) Ito signify a deletion (T) :to signify a rat.e increase ( L) 11:.0 signify material relocat ed in the tarifC (N) Ito signi f y a new rate or regulation ( R) t o signify a r at.e reduction (T) to signl!y a change in text , but no change
r egulation
ISSUED: Ka y S, 1997 EFFECTIVE: ISSUED BY: Gera ld K. Dunne, Jr., President
14Sl West Cypress c reek Road, suite 200 Port Lauderdale, Florida 33309
i n r a te or
CLO, GROOP LONG DISTAJICE, INC. 0~10INAL 8fftET 7 S ~TH DAKOTA PUC TARIPP NO. 1
TELECOIQfONICATIQNS SERVICES TARIPP
SECTION 1 - TECHJIICAL TERMS~P ABBREVIATIONS
Accc~Q Lin~ - An arrange~ent froD a Ioctl! exchange te lephone co1:1pany o r other cocu,on c arrier, using e i t her dodlcatod o r s witched access, which connoct o a Cust o1:1er ' s location t o Ct.o ' s loc ation or s witching c enter.
Authorization Code - A numer ical code, one or mo re or wh ich may be assigned to a Customer, t o enable CLO t o identify the o r igin o f the Cus t omer so it ~a y rate and bill the call. Automatic nucbcr ident if ication ( AHi) iB used as the authorization ~ode wherever possible.
comrnipsion - t•,;ed throughout this tari ti to moon ~he South Dakota Public Util,ties Comm isoion.
Customer - Tho p1,rson. firm, corporil tlon or other legal ent1t.y whic h orde r s the service s o( CLO or purchases a CLO Pr epaid Calling card and/01 originates prepaid cal l s us ing s uch cards, and 1s respons ible for the payment of c ha r ges and f o r complianc e ._•ith tho Coi=pany •s tar!! ! regu lat ions .
Coc,pany or CLP - Used throughout th is t a r i ff t o ,111n CLO, c r o~p Long Oiotance, l nc ., a Florida corporat ion .
ercpa~d Account - An inventory o f Telecom Unl t s purchased In advance by tho customer, and associated with one and only one Authorization Code as cont ained in a specific Prepaid Cal li ng Card .
ercp~id calling card - A car d iGsued by the compony, conta i ning a n Authorization Code whi ch j dentif i es a specific Prepaid AccQunt o f Telecom Units, whic h enables ca l l s to be processed, account a c tivity to be lO<Jgcd, and bdlanc e a tot,., ma i ntained , on a prcpa)'lllont basis.
ISSUED: Kay 5 , 1997 EPPECTIVE: ISSUED BY : Gerald K. Dunne , Jr., President
1451 west cypress Creek Road , suite 200 Port Lauderdale, Plorida 33309
GLD, GROUP LONG OIBTNICE, INC, ORIGINAL BHEeT 8 SOUTII DAKOTA PUC TARIFF NO. 1
TELECOKHlfllICATIQNS SERVICES TARIFF
Telecom Unit - A measurement o f teleco~munl c at1ons service equ i valent t o one minute o f us age between an~ t wo points within t he St a te of South Dakota.
Teleco~rnunications - The transmi ssi on o f voi ce communi cat i ons or, subJect to the transmission capabi l i ti es o f the servi c es , the transmission 0 1 da ta, tar.s1mile , siqnaling , me t ering, or o ther similar commun icati ons.
Underlying carrier - The te lecommuni c.t t lons car rier whose ne t wo rk facl I it loo provide the t echni cnl cc1pabil ity ,, nd capaci t y necessary for the transmission and r ec~pt ion 01 Cust omer t clccoaaun ications trdf f ic.
ISSUED: Kay 5, 1997 EPPECTIVE• ISSUED BY': Gerald K. Dunne, Jr., Preaident
1451 Weat cypress c reek Road, suite 20~ Fort Lauderdale, Florida 33309
OLD, GROUP LONG DI STANCE, INC. ORIGINJU. SHEET 9 SOOTH DAKOTA P UC TARIFF ~ O. 1
TELECOIUIQllICATIQNS SERVICES TARIFF
SECTION z - RULES AHD REGULATIONS
2 . 1 !1.ndertaking or tb• coapany
This tariff conta ins the regulations and rates applicable to Intrastate resale telecommunications services provided by GLD for telecommunications bet ween points within tho State of South Dakota. Resale services are furnished subject t o the availability o( faci li ties and subject to the terms and condi tions of this tdr !! In compliance with l imitat ions set forth in tho Conmlsslon' rules. The company ' s oervlces arc provided on a statewide basis and are not i n tended t o ,be limited gnographlcal ly. The Company offers ser vic:e t o all those who desire to purchase service Crom tho company consist ent with allot the provisions of th is tariff. Customers i nteres ted 1n the Company ' s services shall !Ile a servi ce appl icat ion wi th the cc~pany wh ich f ully Identifies the Cust omer , the services 'Cquested and other information requested by the Comp ... ,y. The Company reserves the r ight to examine the credit record and check the references of all a pplicants and Cust omers. The Company may examine the credit prof.Ile/record of any appl leant prior t o a ccepting the service order o r a Customer's deposit, i ! required. The service application and the deposit shall not in thogsolves obligate the Company to provide services or to continue to provide service if a later check of applicant ' s c redit record is, in tho opinion o f the Company, contrary to the best interest of the Company. If service is denied, cu:.tomer dcpo&i ts, if roquirod, will be returned immediately. Tho company may act as tho Customer ' s agent ! o r ordering access connection f~cil !tles provided by other ca rriers or ent it les when authorized by the Customer , t o allow connection of a Cu s t omer ' s location to a service provided by the company. The cust or.ier shall be responsible for all charges due ror such service arrangement. The Company does not >wn any switching, transmission or other physical !acllitieR in South Dakota.
ISSUED: May 5 , 1997 EFF ECTIVE : I6SUED BY1 Cara ld K. Dunne, Jr ., President
1 45 1 Wes t Cypress Creek Road , s u i te 200 Fort La uderda l e , Florida 33309
GLD, GROU~ LONG DISTANCE, INC. ORJOINJ.L SHEET 10
2. I . 1
2 . 1. 2
2. I.)
SOUTH DAKOTA PUC TARIFF NO . l IELECQKKUNICATIQNS SERVICES TARIFF
The services provided by CLO are not par t of a joint undertaking with any ot her entity providing teleCOCUllUnications channel s, (acillties, or serv ices, but may involve the resale of the Message Toll Services (MTS) and Wide Area Telocomi:iuni1.,ations !>erv ices (WATS) of underlying common carriers subje c t to the jurisdiction or thi s Comaission.
The rates and regul ations contained In this tariff apply on ly to the resa:e services furnished by CLO and do not app ly, unless otherwise specl (ied, to t he lines, facili t ies, or services provided by a local e xchange telephone company or other common carr iers for use in accessing the services o f CLO.
The Company reserves the right to limit t he length or communications , to disco,nt1nue furnishing services, or limit the use of ser vice necessitated by condi t ions beyond its control , including, without limitation: lack of satellite o r o t her transmission medium capacity; the revision, alteration or repricing o r tho Under lying Carrier ' s tar iffed o ffer ings; or when the use o f service becomes o r Is in vi o lation o f the Jaw or tho provisions o f th is tariff.
2.2 Qfe ot s e ryioe a
2. 2. I
2.2.2
CLO • s serv 1 ces may bo used for ., ny law Cul purpose consiotent with tho transmission and s wi t ching parameters of' the telecommunications faci lities utilized in t he provision o ( services, subject to any l imitat ions set forth in thia Section 2.2 .
Tho use o f CLD ' s service& t o make calls wh ich might reaoonably be expected to frighten, abuse, torment, or harass another or In such a way as to unreasonably interfe r e with use by others Is prohibited.
ISSUED: Kay S, 1997 EFFECTIVE: ISSUED BY: Gerald K. O\lnn•, Jr,, President
1 , s1 west Cyprea• Creek Road, suite 200 Port Lauderdale, Flor ida lll09
CLO, GROUP LONO DISTANCE, INC. ORIGINAL SHEET 11
2.2 . )
2 . 2 . 4
2.2 . 5
2 . 2 . 6
2 . 2 . 7
2.2.8
SOUTH DAKOTA PUC TARIFF NO. 1 TELECQKKUNICATIONS SERVICES TARIPf
The use of CLD's ~ervices wi thout payment tor service or attempting to avoid payment !or service by fraudulent means or devices, schemes, fal se or invalid numbers, or falGo ca lling or credit cards is prohibited. GLD ' s services are avai lable for use twentyfour hour s per day, seven days per week. GLD does not t r ansmi t messages, b~t the services may be usod for that purpose.
GLO ' s services may be denied for nonpayment of charges o r for other violations of this t ad ff .
Cust omers s hall not use the serv ice provided under this tariff tor any unlawru l purpose.
rhe Customer ls responsible for notifying the Company immediately o f any unauthorized use o r serv ices .
2.3 Liabil i ty ot the co•pany 2 . 3 .l
2.3.2
The Company s hal l not be liable for any claim , loss , expense or damage for i ny interruption, delay, error, omisslQ, or defect in any service , fac ility or transmission provided under this tariff, if caused by the underl ying ca rr ier, en act of God, fire, war, ci vil disturbance, act of government, or due to any other causes beyond the Company ' s control.
The Company shall not be liable for, a nd sha ll be fully indemni f ied and held harmless by the Customer against any c laim, loas, expense, or damage (or d e famation, libel, s lander, invasion, infringement of copyright or patent, unauthorized use of any trademark, trade name or service mark, propr ie tary or crea t ive right, or any other injury to any person, property or entity arising QUt of the material , data or information transmitted.
ISSUED: Kay S, 1997 El'PECTIVE : I SSUED BY : Ger•ld "· Dunne, Jr ., Pr•aident
14Sl West cypress Creek Road, suite 200 Por t Lauderdale, Florida 33309
GLD, GROUP LONG DI STANCE, INC. ORIGINAL SHEET 12
2 .3. 3
'2.3.<
2 . J . 5
2 . ) . 6
SOUTH DMOTA POC TARIFF NO. 1 TELf:CQK.HUNICl\TIONS SERVICES Tl\RIFF
tlo agent or employee of any other cacrier or entity shall be deemed to be an agent or employee of the company.
The Company ' s liability for damages, resulting in whole or ln pa rt Crom or arising in connection ~ith the furnishing of ser vice under this tariff, including but not limited to mistakes, omissions , Inter ruptions, delays, errors, or other defects or misrepresentations shall not exce~d an amount equa l to tho charges provided for under this tariff ! or the long distance call for the period during whi ch the call was affected. No other liability Ln any event shall attac h to th!? Company.
The company shall not be liable tor and s hall be indemnified and saved harml ess by any Cust omer or by any o th~r l?ntity from any and all loss, claims , demands, suits , or o the r action or any l iability whatsoever, whether s uffered , made, i ns tituted , or ass~rted by any Customer or any other entity for any personal injury t o , or death of, any person or persons, and f or any loss , damage, defacement or des truc tion oC the premises of any custom~r or any other enti ty or any other property whether owned o r controlled by the Cust omer or others.
The Company shall not be liable for any indirect, special , i ncidental, or consequential damages under this tariff Inc luding, but not I imited to, loss ot revenue or profits , (or any reason whatsoever , including the breakdown of facilit ies associated with the service, or for any mistakes, omissions , delays, errors, or defects in transmission occurring during the cour se of furnishing serv ice .
ISSUED: Kay 5, 1997 EFFECTIVE: ISSUED BY': Gerald K. Dunne, J r., President
1451 West cypress creek Road, suite 200 Port Lauderdale, Florida 33309
OLD, GROUP LONO DI8 TANr.E, INC. ORIGINAi, 68ZZT 13
2 .).7
SOUTK DAKOTA PUC ~ARIFF NO. 1 TELECOMMUNICATIONS SERVICES TARIFF
The r emedies sot forth heroin are exclusive and in lieu o( all other warronties and remedies, whether express, imp lied, or statutory, INCLUOIIIG WITHOUT LIHJTATIOII IHPLlED WARRANTIES or HERCHAN1'A8IL1TY ANO FITNESS FOR A PARTICULAR PURPOSE.
2. , Reppon1ibiliti11 o( t b• customer
2 . 4. l
2 . 4. 2
2 . .;. 3
2 . 4. 4
The custooor is responsible for placing any necessary orders and complying wlth tar i t1 regulat ions Tho Customer ls also responsible for tho payment of c harges for services provided under th is tarlfC.
The customer is rooponslble (or c harges incurred ! or specia l construction and/or special fa c ilities whic h the customer requests and which a re ordered by GLD on the Customor •s be.~alf .
I! required ! or the provision o f GI 1•s ser·v ices , the Cui;tomer musl pruvide any equipment s pace, supporting structur e, condui t and electr ical power without c harge t o GLO.
The Customer is responsible for a rrang1ng access to its premises at t i mes mutually agreeable to GLD and the c ustomer when required for CLO personnel to install, r epair , maintain , proqrao, i ns pec t o r remove equipment associated with the provision of CLO ' s services.
The Customer shall cauGe the temperature and relative humidity 1n the equipment space p rovided by CuGtomor for tho installation of GLO's equipment to be naint,ined within t he range nornally provided for tho operat ion o! .,,lc rocomputers.
ISSUED: Hay 5, 199 7 EFFECTIVE: ISSUED DY: Gerald " · Dunn,, J r., Prtaidtnt
1,s1 wes t cypress c r eek Road , Suit• 200 Fort Lauderdale, Plorida 33309
GLD, GROUP LONG DISTANCE, INC. O~IGINAL SHEET 14
, .4.(,
2. ~. 7
2.4.8
2. 4. 9
SOUTH DA~OTA PUC TARIFF NO. l TELECOHMUHICATIONS SERVICES TARIFF
Tho Customer ohall enoure that the equ l pmcnt and/or system is properly inter faced wi th CLO'S facilities or servires , that the signals emitted i nto CLO ' S netwo rk a re o f tho proper mode, bandwidth, power a nd signal level tor the intended use or the subsc riber and i n compliance with c riteria set forth in t his tariff, and that the signals do not damage equipment, injure personnel, or degrade service to othe r Customers. lf the federal Commun icat i ons Commi ssion or some other appropriate c ertlt'ying body certifies terminal equ i pment as being tec hn ically a cceptable t or direct e lectr ical connection with interstc1te communications s ervice , CLO will pennit such equipment to be connected wi th I ts c hannels without the use o f pr otoctlv~ lnter toc e devices . lC the customer fails to malntaln the equipment and/or the system proper l y, with resul t i ng imminent harm to CLO equi pment, personnel or the qual i ty o f service to other Customer s , GLD may, upon written notice, r equi r e the use o f protecti ve equipment at the Custo~er' s expense. If th is ra ils t o produc e satl s l act ory quality and safety , GLD mny , upon written no tice , termi nate tho Cust omer's ser vice.
The customer must pay CLO for replac eoent or repair of damage t o the equipmen~ or fac ilities or GLD caused by negligence o r willful ac t o f the Customer or o thers, by improper use o( the services, or by use o! equipment prov i ded by Cus t omer or o thers .
Tho Customer must pay for the loss through the ft o! any CLO equipment Installed at Cust omer's pren lscs .
If CLO installs equipment at Customer's premises, the Customer shall be responsible tor payment or any a pplicable lns·tallat lon c hargP..
ISSUED: Hay S, 1997 EJ'FECTIVE: ISSUED BY: Ger ald K, Dunno, Jr., President
14Sl west cypress creek Road, suite 200 Fo rt Lauderdale, Florida JJ309
GLD, GROUP LONG DISTANCE, INC. ORIGINAL 88EET 15 SOOTH Dll01'l PUC TARIPP NO. 1
TELECQKHUNICATIQNS SERVICES Tl\RIFf
2. 4. 10 The Cust omer must use t.he s e r vices o!f e r ed in this tariff in a manner consistent wi th the terms of this tarif f ~nd the policies and regulat ions o t a ll state, tederal a nd local author i ties having j urisdict ion over the service .
2 . s c ancellf1tion or Interr11ption ot serylces
2. 5 . l Without i ncurri ng liability, upon five (5) wor king days • (def lned as any day on which the company ' s business office is open and the U.S. Mail is delivered) written notic e to t he , jstomer, GLO may immed iately discontinue ~crv!cos to a Custonor or may ,dthhold t he prov!s!on of o rdered or contr a c ted ser v1ces:
2. 5 .1.A
2 . 5 . l. B
2 . 5 . 1.C
2 . 5. l.O
For nonpayment of any sum due GLD for mor e t ha n t h irt y (JO) days a Cte r issuanc e of t he bill f or t ho amount due ,
Por viol ation o r any o r ·t t , provisions of th is tarif f,
For vio lation of a ny l a w, r u l e , r eg~lation, policy of any gove rni ng authori t y having jurisdiction over GLO ' s s ervices , or
By rcacon of any order or decision of a court , pub lic scrvi.ce commission or federal r egu l atory body or other govern i ng a uthority pr ohib i t ing GLD f r om furnishing its ser vices .
I SSUED : May S, 1997 EFFECTIVE: I SSUED BY: G•ral d M. Dunne, J r., Pr•si dent
1451 West Cypress Creek Road, Su i te 200 Fort Lauderdale, Florida 3 3309
GLD, GROU P LONO 0ISTA1IC£ , IllC, ORIGINAL 8 BE2'1' 1'
2. S. 2
2 . 5 . )
SOUTH DAKOTA P UC T~RIFF NO. 1 tiI<ECOKKQNICATIONS SERVICES TARifl
Wi thout Incurring l iability, CLO may inter rupt tho provision ~ f services at a ny t i me In o rder t o perform test s and inspections to assure compliance with tariff regulations and the proper Installat ion and operation of Cus tomer and CLO ' S equi pment and facili ties a nd may continue such interruption unt il any I t ems of noncompliance or improper equipment operati on so identi f ied a r e rectified.
Service may be d iscont i nued by CLO without notice to the Cust o~er, by bloc k i ng traff ic t o certain countries , c ities o r HXX Pxc hanges, o r by bl ocking ca l ls using certain customer aut horization codes , when CLO deems lt necessary to take such act ion to prevent unlawful use o r Its servi ce . ~ LO will restore service as s oon as it can be provided wi thout undue risk, a nd will , upon reques t by tho Cust omer affected, assign a new authorization code to rep l ace the one that has been dea~tlvated.
Tho cus t omer may tQrminate s ervice upon thirty (30) days wr i tten noti c e Cor tho Company ' s standard month t o month contrac t. cust omer will be liable !or all usage on any o f the Company ' s servi ce o!Cerings until tho customer act ually loaves the scr vic~. Customers will conti nue t o have Company usage until the cust omor notifies its l ocal e xc hange carr ier and c hanges its long distance carr ier. Until tho Customer so notif ies lts local e xchange ca rrier. i t shall continue t o qonorate and be rosponFible for long distance usage .
18SUED: Kay S, 199i EFFECTIVE: ISSUED BY : Gerald K. Dunne, J r ., President
14S1 Veat C'JPress creek Ro ad, S u i te 2 00 Fo rt Lauderdale , Flor i da 33309
GLD, GROUP LOMG DISTN!CE, UIC;. ORIGI NAL SB-ZET 17 SOUTH DAKOTA PUC TARIPP 110. 1
TELECOMMUNICATIONS SERVICES TAB!Zl
2.6 ~dit Allovanct 2. 6 . l
2 . 6 .2
2.6 . 3
2 . 6 .4
2 . 6. 5
Cr edit allowance [or the interrupt ion of service which is not due to the Compiny' s testing o r adjusting, negligence of ·the Customer, or to the failure o( channels or equipment provided by the Customer, .are subject to the genc.ral liability pro"lisions sot forth in 2 .3 heroin. It shall be the obligat ion oC tho Customer to notify the Company immediately of a ny interruption i n service for which a c redi t allowance is ~esired. Before giving such notice, tho Customer s hall ascertain that the trouble is not oQing caused by a ny a c tion or omi ssion by the Cus tomer within hi~ control , or is not ln wi r i ng or equ i pment, if any , furn ished by the Customer a nd connected to the Compan,y ' s l'acil i ties.
No c redit l s al l owed i n the e vent tt 1t service must bo interrupted in orde1 t o provide routine service quality or rela t eo invest tgations.
Credit for fail ure o! ser vice shall be allowed only whe n s-uch failure is ca.used by o r occurs due to causes within the control o[ the Company or in the event that the Co~pany is ent itled to a credit fo r the failure of the facilities or the Company' s Undorlying Carri er used to furnish service.
credit for interruption s hall commence after the Customer not i fies the Company o f the interruption or whe n the Company becomes aware thereoC, a nd ceAses when serv lce has been restored.
For purposes of c redit computat ion , every month shal ~ be consider ed t o have 720 hours .
I SSUED: Kay 5, 1997 EFFECTIVE: ISSUED BY : Gerald H. Dunne, Jr., President
l 4Sl west cypress Creek Road, Suite 200 Fort Lauderdale, Florida 33309
GLD, GROUP LONG DIS Tl'JICE, INC. ORI GINAL S HEET 18
2 .6 .6
2 6 . 7
SOUTH DAiOTA PUC TARIFF NO, 1 Tl!LECQKXQl!ICATIQNS SERVICES I>t8Ifl
!lo credit shal 1 be al lowed for an inter ruption o f a continuous dur ation of less th11n two hours.
The CUstoner sh., I I be c red I ted t o r an interruption of two hours or aore at the rate o( 1/720th of the monthly c harge tor the t aclllt los af!octed for each hour o r ma jor frac tion thereof that the inter ruption c ontinues.
Credit Formula :
credit • _A_ x B 720
"A" - outage time in hours "8" - monthly charge (or 111tected activity
The use and restoration of service shall be in accordance with the priori ty system opecitied in port 6~. Subpart D o f the Ru les and Regulations of t he Federdl Co=nunicatlons Co:misslon.
'ThP Coopany res erves t he r lght t o <'X,u1ine the crC!d I t recor d of all serv ice a ppl l conts .ind cay require " depos it when detC!rm 1ned t o llt.' nec e osary to assur e Ifuture payment.
2 . 9 i4van~• r•va•nta GLD reser ves the r lght to collect an advance payment from Customers in on amount not to exc e ed on e (l) month ' s estlnated charges as an advance payment for service. This will be applied against the next month ' s c harges, and if nec e s sar y , a new advance payment will be c ollected fo r the next month .
I SSUED: Kay S, 1997 EFFECTIVE: ISSUED DY: Geral d K. Dunne, J r ., Preside n t
1451 Wes t Cypress Creek Road , Suit• 200 fort La uder da le, Flor i da 33309
GLD, CROUP LOMG DISTANCE, INC. ORIGINAL SKEET 19 SOUTH DAIIOT~ PUC TARIPP NO. 1
TELECOKMQlllCATIQN§ SERVICES TARIFf
2.10 E&YPltDt and Billing
2 . J(• . I
2 . l 0 .2
2. 10.l
Service is provided and billed on a billing cycle basis, beginning on the date that service becomes effective. Bi ll ing is payable upon r eceipt. Interest at the rate o f 1.S\ per billing cycle, or tho amount othervlse uthorized by law, wh ichever is lower, wil l accrue upon any unpaid amount commencing 30 ~ays fter r end ition of bills.
Thu customer is responsible for payment o t all charges for services furnished t o tho Customer . as well os to all persons using the Custo~er •s c odes , exchange lines, Cac ili t1es , or equipment , with o r without the knowledge or consent of the Customer. The security of the cust omer ' & Authorization Codes , presubscribed exchange llnes, and direct connect facilities is the resp?nsibi11ty of the customer. All ca lls placed using direct connect facillt1es, presubscri bed exchange lines, or Authorization Codes will bo billed to and must be paid by tho Customer. Recurri ng charges and non-recurring charges arc billed In advance. The initial billing ~~y . at Company's option, also include one m>nth' s estimated usage billed in advance. Thereafter, charges based on actual usage dur i ng a month and any a ccrued interes t will be billed month l y In arrears.
All bills are preSUQod accurate, and shall be binding on the customer unless object ion is r eceived by the Company in writing wj !h in 30 days after such bills a re rendered. lo cred its , refunds, or adjustments shall be granted i t demand therefore 1s not received by the Company in writing within ouch 30 day period.
ISSUED : Hay S, 1997 EPPt!CTIVE: ISSUED BY: Gerald H. Dunn•, J r . , President
1«S1 •••t Cypress creet Road, s uite 200 Port Lauderdale, Florida 33309
GLD, GROOP LONG DISTANCE, INC. ORI GINAL SHEET 20 SOUTH DAKOTA POC TARIFF NO. 1
tiLECOIQ(U}IICATIONS SERVICES TABIPP
2.11 co11,ction co1 t 1
In the event Company is required to initiate legal pr oceedings to collect any amounts due to Company for regulated or non-regulated services , equipment or f aci lities, o r to enforce any j udgment obtAined against a Customer, or !or the enforcement oC any other provision of this tar!(! o r applicable low, Customer shall, In addition to all amounts duo, be liable t o Cor:ipany f or all r ~aoonable costs incurred by Company In such proceedings and e:iforccment actions, inc luding reasonable attorneys• fees, collection agency feos or paymnnts, and court cost s. l n any such proceeding, the amount of collection costs , including attorneys • !ees, due to t he company, will be determined by the court.
2 .12 Ttxtf
All federal, s tate and loca l taxes, assessments, surcharges, o r fees, including sa les taxes , uoe taxes, gror.s receipts taXe$ , and municipal utili t ies taxes, arc billed dr. separate Jlne Items and arc not included in the rates quoted herein, except as desc ribed t or prepaid ca lling card service.
2.13 Late ChaJ:.!l!.
A late toe of 1. ~\ monthly o r tho amount o therw ise authorized by law, •,1hlchcver Is lower, will Ix, charged on ony past due balances.
2.1, Returned Check Charg1
A ree ot S2u.oo uill be eharqcd whenever a c heck or dra ft p ·osentcd t or payincnt tor oervice ls not accepted by the ,nstitution on whic h It Is written.
I SSUED: Kay S, 1997 EFFECTIVE: ISSOED BY : Gerald K. Dunne, Jr., President
1451 West cypress Creek Road, Suite 200 Port Lauderdale, Florida 33309
GLD, GROU~ LONG DI8TAHC~, INC. ORIGill1.L 8HEBT 21 SOUTH DAKOTA PUC TARIFF MO. l
TELECQKJ(UNICATIONS SERVICES TARIFF
SBCTIQH l - DESCRIPTION Ql SEBVICB
J .1 coppytat ion of charges J . 1. l
J .1. 2
The total charge for each completed call may be a variabl e measur ed charge dependent on the dur at ion, distance and t lme of day o( the call . The total charge for each completed cal l may also be dependent only o n the dur ation of the call , i . e. a statewide ( lat ··ate per minute charge . The variab le r.1easured charge is specified as a rate per minute which is applied to each minute. l + Dialing and 800 Service calls are measured in six second increments , with a thirty second minimum per call . Travel Car ds and Prepaid Calling Cards a r e measured in one minute increments. All calls are rounded up to the next whole increment .
Where mileage bands appear in a rate table, r ates for all ca lls are based upon the airline distance between the or iginating and ter minat ing points of the c a ll, as determined by the ver t ical and horizontal coordinates assoc iated with the exchange (the a r ea code and three digit central office code) associated with the originating and terminating te lephone numbers. I t the Customer obta i ns access to the company's networ k by a dedicated access circuit, that circuit wi 11 be assigned an exchange for rating purposes based upon the Customer's main telephone number at the loc.stion where the dedicated access c ircuit teroinates . The vertical and horizontal (V, H) coordinates for each e xchange and the a ' rline dis tance between the m wi ll be determined according to ' ndustry standards.
I SSUED : Kay S, 1997 EPPECTIVE: I SSUED BY: Geral d K. Dunno, J r., Pres ident
14Sl West Cypress Creek Road, Suite 200 Port Lauderdale, Florida J JJ09
GLD, GROUP LONG DISTANCE, INC. ORIGINAL SHEET 22 SOUTH OAltOTA PUC T'ARH'F NO. 1
3 . 1. 3
TBLECOKMUNlCATIONS SERVICES TARIFF Timing begins when the called sta.t ion is a ns wered and t wo way communication is possible, a s determined by standard i ndustry methods genera l ly in use for a sce rta i n ing answer , including hardware answer supervision in which the local telephone company sends a signal to t .he s witch or the softW!are utilizing audio tone de tect.ion. Recogn ition of answer supervision ls the r esponsibility of the Underlying Carrier. Timing for each call ends when eit~er party hangs up. GLD will not bill for uncompleted calls.
3 .2 customer complaint s and /or Bil l i ns....Q.i spµte$
Cu~to2e~ inquiries or complaints regarding service or accounting may be made in writing or by telephone to the Company at:
1~ 51 Wes t Cypress creek Road, Su l t e 200 Fort Lauderdale, r1or1da JJJ09 (800) 521- 5422
Any objection to billed charges s hou l d be reported promptly to CLO. Adjust ment s to customers • b ills shall be made t o the extent that record s are avai l able and/ or c ircumstances exist which r easonably indic~t e t hat such cha rges are not in accordance with approved rates or that an adjust.ment may ot herwise be appropriate. Where ovorbilling or a subscriber occurs , due ei ther to Company or subscriber e rror, no liability e xists which will require the Company to pay any interes t , dividend or other c ompensation on the amount ovcrbilled.
ISSUED: Kay 5, 199? EPFECTIV1!: ISSUED BY: Gerald K. ounne, Jr., President
1451 West Cypress Creek Road, suite zoo Port Lauderdale, Florida 33309
GLD, OROU~ LONG DISTANCE, I NC. ORIGINAL SHEET 23 SOUTH DAKOTA PUC T~IPP NO. 1
TELECOIQJUNICATIQNS...JLC.BYtCES TARIFJ'
The Company will respond within seventy two (72) hours of receipt o f an inquiry. If t he Cust omer ls dissatisfied with the Company ' s r esponse to a complaint o r inquiry, t he Customer may Cile t he cocu:aission for r esolution o! t he conflict. The South Dakota Pub l ic Ut i lities Commission can be r oached dt:
~oo East Capitol Pierr e, SO S7SO I- 5070 (60S) 773 - 3201 (800) 332 - 1782
I f a cust omer accw:iulales nor o than Ono Hundred Dollars ( $100,00) of und isputed de l inquent CLO 800 Ser vice charges , the CLOP.esp. Org . reserves the right not to h onor that Customer ' s reques t for a Resp. Orq . c hange unt il s uch undisputed c ha rges are paid i n full.
3. 3 k,Vfl 0 ( 8,XV1Cf
k Customer can expec t end to end network availability o f not less than 99\ a t a ll times for all serv ices .
>. • Bill i ng Ent i t y cond iti olU!
When billi ng functions on behalf o f CLO or its i n termediary are pe rfoC111ed by local exchange telephone companies or others, the payment of charge conditions and r egulatio ns of Ruch compan ies and any regulations imposed upon these compa nies by r egulatory bod ies having jur isdiction apply, GLD's name and t oll- f r ee tolephone number will a ppear on the Customer ' s bill.
ISSUED : Ka y S , 19 97 EPPECTIV&: I SSUED BY : Gerald K. Dunne , Jr., President
....... 14Sl Weat cypre s s Cr eek Roa d , Suite 2 00
Port Lauderdale, Fl o r ida 33309
OLD, GROUP LONG DIOTAMCZ, INC, ORIGINAL Sll!l'!T 24 SOUTH DA~OTA PUC TJUIIPP NO. 1
TEL&COMMQNICATIQNS S&RVICES TARIFF
3.s servio• otterinqe 3. 5. l
). 5. 2
l . 5 . 3
1+ Dlaling
The customer utilizes •1+• dialing , or "lOXXX" diallng followed by "l + ten digits" for intorLATA ca ll s, o r dials "lOXXX" fo llowed by "l + 7 digits'' or "l • 10 digits" ! or intral.ATA ca 11 s.
Travel Cards.
The customer utilizes an 11 digit "800" occess nu~bcr cstabl !shed by CLO ·t o 110:ccss il ten:iinal. Upon receiving a second dial t one, the customer uses push butt.on dialing t o enter an idcntiClcatlon code ass.qned by the Company, f ollowed by the ten digi t number of the called party.
800 Service (Tol l free).
This service is a d i rec t ncccss, Incoming only, usage sensitive WATS offering requiring a dedicated access line (or use. This Is a oervice whereby a Customer can be billed at reduced rat.co for calls to his prooises.
I 8SU£D: Kay 5, 1997 EFFECTIVE: I SSUED BY: Garald K. Dunne, Jr., Praaidant
14Sl ••o t cypress Creak Road, Suite 200 Port Lauderda le, Florida 33309
GLD, GROUP LONG DIST>JfCB, I NC. ORIGINAL 8H!8'1' 25
J.S. <
SOUTH DAJtOTA PUC TARIPP MO. 1 TELECQI001lfICATIQNB SERVICES TARIPP
CLO Prepaid Call lng car ds.
This s erv ice permits use o f CLO Prepaid Ca ll ing Cards fo r placing l ong d i stance calls. Cus tomers may purc hase CLO Prepa id Ca lling car d s at a var i ety ot reta il out let s or throuqh other d i stri but ion chann e ls. CLO Prepaid Calling Cards are a vai l able a t a variet y o! f oce values r ang ing rrom f i ve do l lars (SS.00), in one dol lar (Sl.00) inrrements. CLO Prepaid Calling card service is accessed using the CLO t ol l - free number printed on the card. The cal l er is prompted by an au t omated voice r esponse system t o e nte r h ie/her Authori za t ion Code, and the n t o e nter the terminating t e l ephone number . CLO ' s pr ocessor t r a cks t he call duration on a r ea l t ime basis t o det ermine the number of Telecom Units consumed . The total co~,umed Telecom Units for eac h call , which inc udes app licable t a xes, is deducted f rom the remaining Telecom Unit balance on the Custoner•s CLO Prepaid Calling card.
All calls must be charged against an CLO Prepaid Ca lling Card that has a suC!iclent Telecom Unit balancu . A customer' s call will be int e r rupted wlth an announcea:ient when t he balance is about to be depleted . Such a nnouncement will occur when f ive (5) minutes and when one ( 1 ) a:iinute remain befor e the balance wlll be depicted, bas ed upon the terminating location o f the call.
I SSUED: Ka y S , 1997 EFPEC1'IVE: I SSUED BY: Gerald H. Dunne, Jr., Pre sident
14 S l we st c ypress Cree~ Road, suite 200 Port Lauderdal e , Flor i da 33309
GLD, GROUP LONG DISTANCE, INC. ORIGIN~L SH!!T 26 SOUTH O~XOT~ PUC TARIFF NO . 1
:X:J:LECQKMQNICl,TIONB SERVICES :X:7,Rltl
In order t o continue tho call, the Customer can either cal l the toll-free number on the back of the CLO Prepaid Calling card and "recharge" the balance on the card using a nationally recoqnized c redit ca rd, or the Customer can thr ow tho card away and purchase a new one . Ca 11 s in proqroos w i 11 be terminated by tho Company it the balance on the CLO Prepaid Calling card ls insufficient to continue tho call and the Customer fails to enter the number of another valid CLO Prepaid Callinq Ca r d prior t o ten:,lnatlon.
A card will expire 12 oonths f rom the date ot purchase, or the date 0 1 last rec harge, whi chever l~ later.
A c redit allowance l or CLO Pr epaid Calling Card Service lo appli c able to cal l s that are interrupted due to poor t r ansmission, one-way transmioslon, or involuntary disconnection of a call. A Customer nay als o bo granted credit !or r eachin~ a wrong number. To recei ve the proper c redit, the Cu8to~er gust not ify tho Conpany at the designated tollfree cuctor:ier s er\'iCe number printed on tho CLO Pr~paid Calling card and f urnish the called number, the trouble experienced (e.g. c ut-oft, noisy c ircuit, reached wrong number, e t c.), and the appr oximate time that the call was placed .
When a call cha rqed to an c~o Prepaid Ca lling Card ls Interrupted due to c ut-off , ono-way transmission. or poor t r ansmission conditions, the Customer will r eceive a c red i t equivalent of one Telecom Un it.
ISSUED: Kay 5, 1997 EFFECTIVE: ISSUED BY: Gerald K. ou.n.ne, Jr., President
1451 west Cypress c reek Road, Suite 200 Port Lauderdale, Flor ida 33309
GLD, GROUP LONG DISTANCE, INC. ORIOINJ.L SlreeT 27
3 . !L5
SOOTH 01.ltOTJ. POC T>JIIPP NO . 1 r:LECQKXUNICATIONS SERVICES TN\IPP
Credit allowances tor calls pur s uant to CLO Prepaid Card Service do not apply for interruptions not reported pr omptly to the Company or interruptions thot are due to tho failure o f p~wer, equipment or systems not provided by the Company .
Credit for failure of service shall bo allowed only when such failure Is caused by or occurs due to causes wi thin tho control of +;he Coopany.
'i'he Company wl l ! block all cal ls beginning wi ~h the IIPI, "900" and IIXX "976" cal ls, theraroro s uch calls CAn not bQ comp leted.
Local Calls and Directory Aooistanc~.
Local calls will not be dCCepted or completed . CLO does not prov ide l o ,1 directory assistance. Access to l or.g distance d i rectory assistance is obtained by dial Ing I • 555-121? f o r listings wi thin tho originating area code ond l t (area code) t 555-1212 for other listings. When M~re than one number is reques ted in a single call, a c harge may apply for each number reques ted . A charge will be appllc ablo Cor each number requested, whether or not the number is listed or publ ished.
I SSUED: Ka y 5, 1997 EFFECTIVE : I SSUED BY: Gerald K. Dunne, J r., President
1451 Meat Cypress Creek Road, suit• 200 Fort Lauderdale, Florida 33309
GLD, GROO P LONG D.I STlUICI'!, INC. ORIGINAL SHl'!ET 28
) .5.6
J. 5 . 7
J.5 . 8
SOUTH DlUtOTA PUC TARIFF NO . 1 TELECOMMUNICATIONS SERVICES TARIFF
Specialized Pricing Arrangements.
Customized service packages and competitl ve pricing packages at negotiated rates may be furn ished on a case-by-case basis in response to requests by Customers to the Company tor proposals or for competitive bids. Ser vice o f fered under this tariff provision will be pr ovided to Customers pur sul\nt to contract. Unless other,1lse specltied, the regulations for such arrangements are In addition to the appl !cable t·egulations and prices in other sections or the tariff . Specia llz2d rates or charges will be made available to s imilarly situ .. ted Custo~ers on" non-discrir.:iinatory bil3 Is.
Emergency Ca 11 Hand Ii ng Procedures
Emergency " 9 11" calls a r e not routed to company, but are completed through the 1oc4 l ne twork at no charge.
Promotion~! OffPrings
Tho Company mny, from time to time, make promotional offerings to enhance the marketing of i t s services . These offerings may be limited t o certai n dates, t imes and locations . The Company wi ll notify the Commission of such offerings as required by Commission ru les and requlations.
ISSUl'!.D: M•y S, 1997 l'!FPECTIVE: ISSUl'!D BY: Gereld H. Dunne, Jr., President
14Sl West Cypr ess Creek Road, Suite 200 Port Lauderdale, Flori da 33309
OLD, ORO\i& LONG DISTANCE, INC . ORIGINAL SHEET 2t SOUTH DA.OTA PUC TA:RIPP NO. 1
T!J«ECQ1QCQJ1ICJ\TIQN8 SERVICES TARIPP
SECTION t - RATES
4 . 1 1 t 01a11ng
GLD will chargo a flat rate per gfnute wi th no time o t day discounts and without regard to mi leage for cal l s orig inating and terminating in South Dakota as f ollows:
S0.16 1
CLO will ch11rgo II fl11t rate per n .lnute with no ti111e of' day discounts and without reqard t o 111ileage tor calls or iginac lng ~nd terminating in South Ookot~ as follows
S0.25
ISSUED: Kay 5, 1997 EFFECTIVE : ISSUED BY: Gerald K. Dunne, Jr., President
1451 •••t Cypr••• Creek Road , suite 200 Fort Lauderdale, Florida 33309
GLD, GROUP LOMG DIBTJUIC!, IMC. ORIOIMAL BH!!T lO SOOTH DAJIOTA POC TARIPP NO. 1
llLECQIQCQ]IICATIQNS QBBVICEB TARIFF
4 . 3 poo service CLO will charge a f lat ra t e per mlnutc wJth no time ot d ay discounts and wi t hout regard to mileage t or calls o r i9inatinq and terminating In South Dakota as follows:
$0.161
•·• Pr epa i d call ing cu :~ CLO Pr epa i d Ca l ling Cards arc available in va rious Tclcco~ Unit denominations. Prepaid Ca lling Cards may be rc~harged ln Sl ir.crcmcnts (min. $5). Prices are inclusive of a l l t ~xes.
Price Poe Telc:cop un it
S. 45
Cards will be decremen:ed by one Telecom Unit for each minute or t ractlonal part o r a minute tor intrasuito ca l ls. Those rates apply twenty- four hour s per day, sovon da ys por week .
ISSUED: May 5, 1997 EFFECTIVE: I SSUED BY: Gerald M. Dunne , J r., President
14 51 West Cypress c reek Road, suite 2 00 Fort Lauderdale, Florida 33309
GLD, GROUP LONG DISTANCE, INC. QJIOIIIAL 88EBT 31 SOUTH DAKOTA PUC TARIPP MO. 1
TILICQt!XQlUCATIQlfS spy1czs TN\IU
, .s BAt• r•riog, Day: 8 a .m . - 5 p.m. • , Monday - Friday
Evening: 5 p.m. - 11 p.m. • , Sunday - Friday
Hight/ 11 p.m . - 8 a.m. • , Sunday - fr1day Weekend: , Al 1 Day Saturday
• To, but not i nc luding
When~ m~ns agc span5 narc than one rate por! od, total chargou Co t t ho minutes i n each rato per iod aro ca Jr.ulated and the res ults for oach r ate period arc totaled to obtain the total message charge. If the c~lc ulation r esult.s in a trac tJona l c hargo, the amount will bo r ounded dcr~n t o the l o~er cent.
, ., Directory Attittanc• chargop
A c harge per nuGber requested will be S.75
, • 1 B•turn\11 cb121t charge
$20 .00
ISSUED: Kay 5, lt97 E7PECTIVZ: ISSUED BY: Gerald K. Dunne, Jr., Preaident
1451 •••t cypr••• c reek Road, Suit• 200 Fort Laudardal•, Florida 33309
GROUP LONG DISTANCE, INC. u,i w CYl'l'US Cl!C[l( RD. Svrrf 200
,on, L<UDlRDAl.E. rL nm
11554
..
Sou1h l) Jko1J TELECOMMUNICATIONS SER VICE FILINGS Public t.'11l11i,, Cornmi},ion
Su1i· C.1pi1ol s;c E. CJpiwl Th«H .,. ,,,. ,,,K orrvnun.uuon, Mrvk,., nJjog, '"'• -1 " ' ' ConWNU &Oft hH fe<t Wffl '°' '"'· CltUOd Of
Pier~. SD "7~::t-~C7.: 05/02/97 through 05/08/ 97 Phone: (SC-Cl H.2·17S: F .ix: ((,J~) 7Ji.J8C'J
II you fk'f'd • corni()lett copy 0 1 • hkno f•• NI,. c,v~tntgtlt ••a>tuwd, o, m.111ttt to )"®. p1..,,t1 con1.tet 0.1 .. ,ne 1'(0,t,o •••tthm ttvt o•y• o f thn, "'"~
DOCKET TITLE/STAFF/SYNOPSIS OATE INTERVENTION
NUMBER FILED DEADLINE
ORDER OPENING INVESTIGATION DOCKET
AJI cctt,fted long distance reseller; are not reQUlled to 01:>1a1n ~ Pnrnary lnterstnte C~u,er (PIC) number w,u, which to i<1ennty them a$ a customers lor.g <hs!.1r1ec earner Tt>e Publ<C Ubllllt~ Comm=n (Comm,ss,on) na1. r.eJOOd a number of concerns
TC97,050 rogard1n9 t/le u.tficuJlies loca l e , ctmnge earners and customers arc o, perienc,ng wl\en trying to ldenuty a customer s long Openeo OS/23.97 o.stonce earner Commission Staff has also encountorl!d o,rtlc:ulous when anempbr,g ro obtain such ,ntormaoon TM 05-02,97
Comrnission has oi>enoo 11\tS oockcl to ,nvo,;ogdre !he p•acbc,• or tono distance resellers oi>eroung wttllin the sl~te of Soutn Oakom without an ldonUMnn PIC nurnber /Stall LHl)(Ct
REQUEST FOR CERTIFICATE OF AUTHORITY
Aopl,caoon by GLO, Group Long Oistance. l!\I: J.or a Cer~ftc:are of Aulhorl!y lo ope, JI~ as :1 relecommun,cauons company wimm
TC97-0.S1 tho stare or South Ookola (Staff TStCH) "Appbcanr IS a SWl!Chh•\S roscne, wll,ch 1nfM<IS lo oNcr I • direct dldiing 800 roll OS 06 97 05'23197 tree trove! card and prepaid callin{j card scrv,ce thoough th~ rl's.1le cl telcphene serv,ces p,oV1Cli>d by tac,hnes bal~d
lnreroach;,nue carno,s ..
....__ FILING OF INFORMATIONAL ll'ljTRASTATE PAYPHONE TARIFFS
Gold~n Wost Telecommu,~cauon~ Coop(,r.ttove Inc on May 8 1997 VMan Tulept,one Cornp.,ny d ,~a Golilon W,,st NA Commuo,cauon$ Jnc on Maye 1997 Sphtroc~ P10P9rue~ Inc on Moy 8 1997 RC Commun,c~uons Inc on t.t~v 8 199; 'II!. N;.
,1nd Rob,•11s Counov T,•lonhone Cno.,..rarovo "'-=ia~on on Ma• 8 t!l9~
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PAGE 1 OF 1
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~ hdc of ~ outq ~akotu
~ ~
OFFIC!: OF THE SECRETARY Of STATE
CERTIFICATE OF AUTMORITY
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\ ·.
BEFORE THE PUBLIC UTILITIES COMMISSION OF THE ST ATE OF SOUTH DAKOTA
IN THE MATIER OF THE APPLICATION OF ) GLD, GROUP LONG DISTANCE, INC. FOR A ) CERTIFICATE OF AUTHORITY TO PROVIDE )
ORDER G!RANTING CERTIFICATE OF
AUTHORlrY TELECOMMUNICATIONS SERVICES IN I SOUTH DAKOTA ) TC97-051
On Maiy 6 1997 the Public Utlht,es Commission (Commission), 1n accordance with SOCL 49-31· 3 and APSD 20 10 24 02 recetved an apphcahun for a certificate o f authority from GLD. Group Long D,stance Inc (GLD)
GLD ,s a sw,tcnless res-tiler req\lest1ng authonty 10 offer 1• d1re::1 d1ahng 800 toll lree, travel caro, and prepaid :aU,ng ca,d serv,ce through the resale of telephone services provided by roc:illliesbased 1ntereJtc.harige earners A proposed tariff was r,led by OLD The Comm,ss,on has ctass,fied lor,g distance service as fully compettt1ve
On May 6 1997, t:ie Comm1ss,on electror11cally tr;in;m,ueg notice of the hhng and the mrerventJOn dtt.adbne of May 23. 1997, to 111:erested 1nd1v,duals and ent111es No pet1110ns 10 lnter,1ene or comments were filed and at ,ts regularly schedulr d July 15. 1997 meeting ti>·• Comm,ss,on considered GLD's request tor a certificate ot authonry Comm,ss,on Staff re<:omm ,oed gram,ng a ce:t,f~te or authonty, subJect to the cond11,on thai GLD not ofler a prepa,d c.ilbng ...ard or requ,re deposl1.5 or advance payments without pr,or approval of the Comm,ss,on
The Comm1ss1on finds that 11 has 1unsdic11on over t'l,s matter pursuant to Chapter 49-31 . speaf1Cillly 49-3 1-3 and ARSD 20 10 24 02 and 20 10 24 03 The Comm,ss,on finds that GLD has met the legal requ,remt:nts establtshed for the granting or :i cerllficale of authonty GLD has, ,n accordance with SOCL 49·3 1-3, demons!Tated suffic:ient technical. fioanc.al and managerial copab-.t,11es 10 o ffer telocommunications services in South Dakota. The Comm1ss1on approves GLO's applK:att0n for s cen1fica1e or authonty. sub1ec1 to the cond111on 1hat GLD not o ffer a prepa,d calltng card or req u1te d.ipos11s or advance payments withou: pnor approval o f thO Cc.mm,ss1on As tne Comm,ss,on·s final deos10:-: in 1h1s ma11er ,t ,s lherefore
ORDERED that GLO's appltca11on for a cer1,ficate o f au1honty ,s hereb)' granted sub1ect to the cond,uon lhat GLD not otrer a prepaid caHtng card or require deposits or advance payments without pnor approval or the Comm,sslon It 1s
FURTHER ORDERED. that GLD shall file 1nforma1t0nal copies of tanff Changes with the Comm,ss,on a.s the changes occur
Dated at Pierre South Dakota this ,?f tlday of July, 1997
CERlilFlCArE Of SERVICE BY ORDER OF THE COMMISSION
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PAM NELSO~ . Comm1ss!,Pher /
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LASKA SCHOENFELDER Comm1ss,oner
SOUTH DAKOTA PUBLIC UTILITIES COMMISSION
CERT/FICA TE OF AUTHORITY
To Conduct Business As A Telecommunications Company Within The State Of South Dakota
Authority was Granted July 15. 1997 Docket No TC97-051
This is to certify that
GLD, GROUP LONG DISTANCE, INC.
Is authorized 10 provide te/ecommumcattons services ,n South Dakota
Tlh,s cert1f1cate 1s issued 1n acr.ordance with SDCL 49-31-3 and ARSD 20.10 24, 02. and ,s subiect to all of lhe c.ond111ons and hm11at1ons contained 1n :he rules and statutes governing ,ts conduct or offering telecommunicauons services
Dated at Pierre, South Dakota. this elf dday of ~ - 1997
SOUTH DAKOTA PUBLIC UTILITIES COMMISSION: