EX-99.1 3 a5-15ex99_1.txt Exhibit 99.1 ------------ UNITED STATES BANKRUPTCY COURT SOUTHERN DISTRICT OF NEW YORK Chapter 11 In re: Bethlehem Steel Corporation, et al., Case No. 01-15288 (BRL) Debtors through 01-15302, 01-15308 through 01-15315 (BRL) MONTHLY OPERATING STATEMENT FOR THE PERIOD APRIL 1 TO APRIL 30, 2002 DEBTORS' ADDRESS: Bethlehem Steel Corporation 1170 Eighth Avenue Bethlehem, PA 18016 DISBURSEMENTS: April 1 to April 30, 2002 (millions): $341.0 (see attached schedule for disbursements by Debtor) DEBTORS' ATTORNEY: Weil, Gotshal & Manges LLP 767 Fifth Avenue New York, NY 10153 Harvey R. Miller (HM 6078) Jeffrey L. Tanenbaum (JT 9797) George A. Davis (GD 2761) NET LOSS: April 1 to April 30, 2002 (millions): $36.7 REPORT PREPARER: Bethlehem Steel Corporation THIS OPERATING STATEMENT MUST BE SIGNED BY A REPRESENTATIVE OF THE DEBTOR The undersigned, having reviewed the attached report and being familiar with the Debtors' financial affairs, verifies under penalty of perjury, that the information contained herein is complete, accurate and truthful to the best of my knowledge. DATE: May 15, 2002 /s/ Lonnie A. Arnett ---------------------------- Lonnie A. Arnett Vice President, Controller and Chief Accounting Officer Bethlehem Steel Corporation Case No. 01-015288 (BRL) through 01-015302, 01-5308 through 01-15315 (BRL) CONSOLIDATED STATEMENTS OF OPERATIONS (dollars and shares in millions, except per share data)
April 30, 2002 ------------------------------- Four Months One Month Ended (unaudited) (unaudited) ------------- ------------- Net Sales $ 294.6 $ 1,098.4 ------------- ------------- Costs and Expenses Cost of sales 295.9 1,107.4 Depreciation 21.2 81.7 Selling, administration and general expense 9.1 34.2 ------------- ------------- Total Costs and Expenses 326.2 1,223.3 ------------- ------------- Loss from Operations (31.6) (124.9) Reorganization Items (Note 2) (1.1) (3.2) Financing Expense - net (Note 3) (4.0) (16.2) ------------- ------------- Loss before Income Taxes (36.7) (144.3) Benefit from Income Taxes (Note 4) - 10.3 ------------- ------------- Net Loss (36.7) (134.0) Dividend Requirements on Preferred and Preference Stock 3.3 13.2 ------------- ------------- Net Loss Applicable to Common Stock $ (40.0) $ (147.2) ============= ============= Net Loss per Common Share: Basic and Diluted $ (0.31) $ (1.12) Average Shares Outstanding: Basic and Diluted 131.0 130.9
The accompanying Notes are an integral part of the Consolidated Financial Statements. See Note 6 for Consolidated Statement of Operations for Debtors Only. Bethlehem Steel Corporation Case No. 01-15288 (BRL) through 01-015302, 01-15308 through 01-15315 (BRL) CONSOLIDATED BALANCE SHEET (dollars in millions)
April 30, 2002 (unaudited) ------------- ASSETS Current Assets: Cash and cash equivalents $ 66.7 Receivables, less allowances 370.1 Inventories: Raw materials 214.5 Finished and semifinished 509.4 ------------- Total Inventories 723.9 Other current assets 31.4 ------------- Total Current Assets 1,192.1 Investments and Miscellaneous Assets 119.2 Property, Plant and Equipment, less accumulated depreciation of $4,440.0 2,628.7 Intangible Pension Asset 225.0 ------------- Total Assets $ 4,165.0 ============= LIABILITIES AND STOCKHOLDERS' DEFICIT Current Liabilities: Accounts payable $ 143.9 Accrued employment costs 71.6 Secured debt and capital lease obligations - current 19.7 Other current liabilities 63.2 ------------- Total Current Liabilities 298.4 Secured Debt and Capital Lease Obligations 130.6 Debtor-in-Possession Financing 220.7 Debt Secured by Inventory 289.9 Other Long-term Liabilities 140.4 Liabilities Subject to Compromise (Note 5) 4,898.8 Stockholders' Deficit: Preferred Stock 11.3 Preference Stock 2.0 Common Stock 135.9 Common Stock held in treasury at cost (65.9) Additional paid-in capital 1,908.9 Accumulated other comprehensive loss (833.0) Accumulated deficit (2,973.0) ------------- Total Stockholders' Deficit (1,813.8) ------------- Total Liabilities and Stockholders' Deficit $ 4,165.0 =============
The accompanying Notes are an integral part of the Consolidated Financial Statements. See Note 6 for Consolidated Statement of Operations for Debtors Only. Bethlehem Steel Corporation Case No. 01-15288 (BRL) through 01-015302, 01-15308 through 01-15315 (BRL) CONSOLIDATED STATEMENTS OF CASH FLOWS (dollars in millions)
April 30, 2002 ------------------------------- Month Four Months Ended Ended (unaudited) (unaudited) ------------- ------------- Operating Activities: Net loss $ (36.7) $ (134.0) Adjustments for items not affecting cash from operating activities: Depreciation 21.2 81.7 Recognition of deferred gains (1.8) (7.4) Reorganization items 1.1 3.2 Other - net 1.4 6.3 Working capital (excluding financing and investing activities): Receivables 0.6 (19.4) Inventories (1.7) 1.4 Accounts payable (10.8) (20.6) Other (12.9) (2.2) Funding postretirement benefits: Pension funding less than expense 12.0 47.6 Retiree healthcare and life insurance benefit payments less than expense 3.8 17.9 ------------- ------------- Cash Used For Operating Activities Before Reorganization Items (23.8) (25.5) ------------- ------------- Reorganization items (1.1) (3.2) ------------- ------------- Cash Used For Operating Activities (24.9) (28.7) ------------- ------------- Investing Activities: Capital expenditures (11.7) (25.9) Cash proceeds from asset sales 0.1 16.7 ------------- ------------- Cash Used By Investing Activities (11.6) (9.2) ------------- ------------- Financing Activities: Borrowings 30.0 30.5 Debt and capital lease payments (0.7) (18.8) Other payments (2.1) (11.1) ------------- ------------- Cash Provided By Financing Activities 27.2 0.6 ------------- ------------- Net Decrease in Cash and Cash Equivalents (9.3) (37.3) Cash and Cash Equivalents - Beginning of Period 76.0 104.0 ------------- ------------- - End of Period $ 66.7 $ 66.7 ============= ============= Liquidity at Month End $ 240.4 $ 240.4 ============= ============= Supplemental Cash Payment Information: Interest and other financing costs, net of amount capitalized $ 6.3 $ 14.1 Capital lease obligations incurred - 1.9
The accompanying Notes are an integral part of the Consolidated Financial Statements. Bethlehem Steel Corporation Case No. 01-15288 (BRL) through 01-015302, 01-15308 through 01-15315 (BRL) NOTES TO APRIL 30, 2002 CONSOLIDATED FINANCIAL STATEMENTS (unaudited) 1. The 2002 Consolidated Financial Statements are unaudited and should be read together with the audited financial statements in Bethlehem's Annual Report on Form 10-K for the year ended December 31, 2001 on file with the Securities and Exchange Commission. 2. Net costs resulting from reorganization of the businesses have been reported in the statement of operations separately as reorganization items. For the month and four-month periods ended April 30, 2002, the following have been recorded (in millions): Month Ended Four Months Ended ------------------------------- Professional fees $ 1.2 $ 5.0 Other administrative fees 0.0 0.5 Gains from termination of contracts 0.0 (2.0) Interest income (0.1) (0.3) ------------- ------------- Total $ 1.1 $ 3.2 ============= ============= 3. Interest at the stated contractual amount on unsecured debt that was not charged to earnings for the period from January 1 to April 30, 2002 was approximately $14 million. 4. The income tax benefit recorded for the four-month period represents a $10 million tax refund as a result of the "Job Creation and Workers Assistance Act of 2002" that was enacted on March 8, 2002. The Act provides us the ability to carry back a portion of our 2001 Alternative Minimum Tax loss for a refund of taxes paid in prior years that was not previously available. We expect to receive the refund later this year. 5. Liabilities subject to compromise (in millions) at April 30, 2002 follows: Other postemployment benefits $ 2,024.6 Pension 1,671.6 Unsecured debt 526.7 Accounts payable 206.4 Accrued employment costs 236.2 Other accrued liabilities 156.7 Accrued taxes and interest 76.6 ------------- Total $ 4,898.8 ============= 6. Summarized consolidated Statement of Operations and Balance Sheet (in millions) for the Debtors only follows: Summarized Consolidated Statement of Operations Four Months Ended April 30, 2002 ------------- Net Sales $ 1,090.2 Costs and Expenses 1,215.8 ------------- Loss from Operations (125.6) Reorganization Items (3.2) Financing Income (Expense) - Net (16.3) Equity in Income of Unconsolidated Subsidiaries 0.8 ------------- Loss Before Income Taxes (144.3) Benefit from Income Taxes 10.3 ------------- Net Loss (134.0) Dividend Requirements on Preferred and Preference Stock 13.2 ------------- Net Loss Applicable to Common Stock $ (147.2) ============= Summarized Consolidated Balance Sheet April 30, 2002 ------------- Assets Current Assets: Cash and cash equivalents $ 56.2 Receivables, less allowances 364.2 Inventories 692.5 Other current assets 30.3 ------------- Total Current Assets 1,143.2 Investments and Miscellaneous Assets 149.4 Property, Plant and Equipment, less accumulated depreciation of $4,177.1 2,568.6 Intangible Pension Asset 225.0 ------------- Total Assets $ 4,086.2 ============= Liabilities and Stockholders' Deficit Current Liabilities: Accounts payable $ 132.7 Accrued employment costs 60.3 Secured debt and capital lease obligations - current 19.7 Other current liabilities 49.2 ------------- Total Current Liabilities 261.9 Secured Debt and Capital Lease Obligations 130.7 Debtor-in-Possession Financing 220.7 Debt Secured by Inventory 289.9 Deferred Gains and Other Long-Term Liabilities 98.1 Liabiliites Subject to Compromise 4,898.8 Total Stockholders' Deficit (1,813.9) ------------- Total Liabilities and Stockholders' Deficit $ 4,086.2 ============= Bethlehem Steel Corporation Case No. 01-15288 (BRL) through 01-015302, 01-15308 through 01-15315 (BRL) Post petition salaries and wages, including employee withholdings and employer related payroll taxes, have been paid in the ordinary course of business. Other post petition taxes, including those for sales and use taxes, property taxes and other taxes have been paid in the ordinary course of business. All insurance policy premiums due, including those for workers compensation and disability insurance have been paid. Accordingly, all such policies remain in force. Details for the above transactions will be provided to U.S. Trustee upon request. BETHLEHEM STEEL CORPORATION Case No. 01-15288 (BRL) through 01-015302, 01-15308 through 01-15315 (BRL) Monthly Operating Report Schedule of Disbursements
Month Ended Four Months Ended (dollars in thousands) April 30, 2002 April 30, 2002 ------------------------ ------------------------ Bethlehem Steel Corporation $337,395 $1,202,412 Alliance Coating Company, LLC 2,559 5,268 BethEnergy Mines Inc. 179 842 Bethlehem Cold Rold Corporation 0 0 Bethlehem Development Corporation 0 0 Bethlehem Rail Corporation 82 100 Bethlehem Steel de Mexico, S.A. de C.V. 47 226 Bethlehem Steel Export Company of Canada, Limited 0 0 Bethlehem Steel Export Corporation 0 0 BethPlan Corp. 0 0 Chicago Cold Rolling, L.L.C. 512 2,174 Eagle Nest Inc. 0 0 Encoat North Arlington, Inc. 38 101 Energy Coatings Company 0 2 Greenwood Mining Corporation 0 0 HPM Corporation 0 0 Kenacre Land Corporation 0 0 LI Service Company 126 497 Marmoraton Mining Company, Ltd. 11 28 Mississippi Coatings Limited Corporation 0 8 Mississippi Coatings Line Corporation 0 1 Ohio Steel Service Company, LLC 0 0 Primeacre Land Corporation 11 45 ------------------------ ------------------------ $340,960 $1,211,704
Note: Inter-company disbursements are excluded from this schedule.