New Group Takes Over at Pay-Fone

The sale of 30% of stock in Pay-Fone Systems held by company founder Lewis Greenwood was completed last week, effectively transferring management control of the Van Nuys-based accounting-services firm to a new group.

Greenwood sold his stock for $2.8 million to Guy Lundberg, a data-processing executive, and to Allied Contractors, headed by Richard Kelton and based in Santa Monica.

Kelton was named chairman of Pay-Fone, and Lundberg was named president and chief executive officer, replacing Greenwood. Earlier this year, Greenwood was embroiled in a bitter proxy fight with Kelton and Lundberg. Although Greenwood’s group won a majority of the board of directors seats, he finally decided to sell his holdings.

Lundberg is the son of the late Dan Lundberg, publisher of the celebrated Lundberg Letter, an oil-industry newsletter.

Pay-Fone Systems also announced its third-quarter results for the period ended March 31. Revenue fell 1% to $1.57 million, and the company reported a loss of $78,976, contrasted with an $80,153 profit in the same period last year. For the nine-months period, the company reported net income of $446,367, up 99% from a year earlier. Revenue was $5.3 million, up 1%.