EX-99.1 3 a6-20ex99_1.txt 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 MAY 1 TO MAY 31, 2002 DEBTORS' ADDRESS: Bethlehem Steel Corporation 1170 Eighth Avenue Bethlehem, PA 18016 DISBURSEMENTS: May 1 to May 31, 2002 (millions): $343.5 (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: May 1 to May 31, 2002 (millions): $37.4 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: June 20, 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)
May 31, 2002 ------------------------------- Five Month Ended Months Ended (unaudited) (unaudited) ------------- ------------- Net Sales $ 316.1 $ 1,414.5 ------------- ------------- Costs and Expenses Cost of sales 321.5 1,428.9 Depreciation 20.1 101.8 Selling, administration and general expense 6.6 40.8 ------------- ------------- Total Costs and Expenses 348.2 1,571.5 ------------- ------------- Loss from Operations (32.1) (157.0) Reorganization Items (Note 2) (1.2) (4.4) Financing Expense - net (Note 3) (4.1) (20.3) ------------- ------------- Loss before Income Taxes (37.4) (181.7) Benefit from Income Taxes (Note 4) - 10.3 ------------- ------------- Net Loss (37.4) (171.4) Dividend Requirements on Preferred and Preference Stock 3.3 16.5 ------------- ------------- Net Loss Applicable to Common Stock $ (40.7) $ (187.9) ============= ============= Net Loss per Common Share: Basic and Diluted $ (0.31) $ (1.44) 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)
May 31, 2002 (unaudited) ------------- ASSETS Current Assets: Cash and cash equivalents $ 43.0 Receivables, less allowances 394.6 Inventories: Raw materials 231.3 Finished and semifinished 491.9 ------------- Total Inventories 723.2 Other current assets 18.4 ------------- Total Current Assets 1,179.2 Investments and Miscellaneous Assets 121.0 Property, Plant and Equipment, less accumulated depreciation of $4,454.3 2,626.4 Intangible Pension Asset 225.0 ------------- Total Assets $ 4,151.6 ============= LIABILITIES AND STOCKHOLDERS' DEFICIT Current Liabilities: Accounts payable $ 167.7 Accrued employment costs 64.7 Secured debt and capital lease obligations - current 19.7 Other current liabilities 71.3 ------------- Total Current Liabilities 323.4 Secured Debt and Capital Lease Obligations 129.9 Debtor-in-Possession Financing 220.7 Debt Secured by Inventory 289.9 Deferred Gain and Other Long-term Liabilities 138.8 Liabilities Subject to Compromise (Note 5) 4,899.9 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 1,909.1 Accumulated other comprehensive loss (833.0) Accumulated deficit (3,010.4) ------------- Total Stockholders' Deficit (1,851.0) ------------- Total Liabilities and Stockholders' Deficit $ 4,151.6 =============
The accompanying Notes are an integral part of the Consolidated Financial Statements. See Note 6 for Consolidated Balance Sheet of the 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)
May 31, 2002 ------------------------------ Month Five Months Ended Ended (unaudited) (unaudited) ------------- ------------- Operating Activities: Net loss $ (37.4) $ (171.4) Adjustments for items not affecting cash from operating activities: Depreciation 20.1 101.8 Recognition of deferred gains (1.8) (9.2) Reorganization items 1.2 4.4 Other - net 2.1 8.4 Working capital (excluding financing and investing activities): Receivables (24.5) (43.9) Inventories 0.7 2.1 Accounts payable 18.1 (2.5) Other 10.6 8.4 Funding postretirement benefits: Pension funding less than expense 6.4 54.0 Retiree healthcare and life insurance benefit payments less than expense 6.1 24.0 ------------- ------------- Cash Provided By (Used For) Operating Activities Before Reorganization Items 1.6 (23.9) ------------- ------------- Reorganization items (1.2) (4.4) ------------- ------------- Cash Provided By (Used For) Operating Activities 0.4 (28.3) ------------- ------------- Investing Activities: Capital expenditures (22.4) (48.3) Cash proceeds from asset sales 0.9 17.6 ------------- ------------- Cash Used By Investing Activities (21.5) (30.7) ------------- ------------- Financing Activities: Borrowings - 30.5 Debt and capital lease payments (0.9) (19.7) Other payments (1.7) (12.8) ------------- ------------- Cash Used By Financing Activities (2.6) (2.0) ------------- ------------- Net Decrease in Cash and Cash Equivalents (23.7) (61.0) Cash and Cash Equivalents - Beginning of Period 66.7 104.0 ------------- ------------- Cash and Cash Equivalents - End of Period 43.0 43.0 Available Borrowing under Committed Bank Credit Arrangements 178.1 178.1 ------------- ------------- Total Liquidity at End of Month $ 221.1 $ 221.1 ============= ============= Supplemental Cash Payment Information: Interest and other financing costs, net of amount capitalized $ 0.9 $ 15.0 Income taxes paid - 0.4 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 MAY 31, 2002 CONSOLIDATED FINANCIAL STATEMENTS (unaudited) 1. These 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 the five-months ended May 31, 2002, the following have been recorded (in millions): Five Month Ended Months Ended -------------------------------- Professional fees $ 1.2 $ 6.2 Other administrative fees - 0.5 Gains from termination of contracts - (2.0) Interest income - (0.3) ------------- ------------- Total $ 1.2 $ 4.4 ============= ============= 3. Interest at the stated contractual amount on unsecured debt that was not charged to earnings for the five-months ended May 31, 2002 was approximately $18 million. 4. The income tax benefit recorded for the five-months ended May 31, 2002 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 May 31, 2002 follows: Other postemployment benefits $ 2,030.6 Pension 1,678.0 Unsecured debt 526.7 Accounts payable 200.7 Accrued employment costs 231.3 Other accrued liabilities 155.5 Accrued taxes and interest 77.1 ------------- Total $ 4,899.9 ============= 6. Summarized consolidated Statement of Operations and Balance Sheet (in millions) for the Debtors only follows: Summarized Consolidated Statement of Operations Five Months Ended May 31, 2002 ------------- Net Sales $ 1,404.0 Costs and Expenses 1,561.9 ------------- Loss from Operations (157.9) Reorganization Items (4.4) Financing Income (Expense) - Net (20.4) Equity in Income of Unconsolidated Subsidiaries 1.0 ------------- Loss Before Income Taxes (181.7) Benefit from Income Taxes 10.3 ------------- Net Loss (171.4) Dividend Requirements on Preferred and Preference Stock 16.5 ------------- Net Loss Applicable to Common Stock $ (187.9) ============= Summarized Consolidated Balance Sheet May 31, 2002 ------------- Assets Current Assets: Cash and cash equivalents $ 37.1 Receivables, less allowances 388.3 Inventories 692.7 Other current assets 17.3 ------------- Total Current Assets 1,135.4 Investments and Miscellaneous Assets 144.6 Property, Plant and Equipment, less accumulated depreciation of $4,198.8 2,569.4 Intangible Pension Asset 225.0 ------------- Total Assets $ 4,074.4 ============= Liabilities and Stockholders' Deficit Current Liabilities: Accounts payable $ 156.1 Accrued employment costs 57.5 Secured debt and capital lease obligations - current 19.7 Other current liabilities 55.4 ------------- Total Current Liabilities 288.7 Secured Debt and Capital Lease Obligations 129.9 Debtor-in-Possession Financing 220.7 Debt Secured by Inventory 289.9 Deferred Gains and Other Long-Term Liabilities 96.4 Liabiliites Subject to Compromise 4,899.9 Total Stockholders' Deficit (1,851.1) ------------- Total Liabilities and Stockholders' Deficit $ 4,074.4 ============= 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 Five Months Ended (dollars in thousands) May 31, 2002 May 31, 2002 ------------------------- ------------------------- Bethlehem Steel Corporation $338,392 $1,540,804 Alliance Coating Company, LLC 1,616 6,884 BethEnergy Mines Inc. 263 1,105 Bethlehem Cold Rold Corporation 0 0 Bethlehem Development Corporation 0 0 Bethlehem Rail Corporation 8 108 Bethlehem Steel de Mexico, S.A. de C.V. 74 300 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. 451 2,625 Eagle Nest Inc. 0 0 Encoat North Arlington, Inc. 6 107 Energy Coatings Company 1 3 Greenwood Mining Corporation 0 0 HPM Corporation 0 0 Kenacre Land Corporation 0 0 LI Service Company 101 598 Marmoraton Mining Company, Ltd. 5 33 Mississippi Coatings Limited Corporation 2,568 2,576 Mississippi Coatings Line Corporation 52 53 Ohio Steel Service Company, LLC 0 0 Primeacre Land Corporation 17 62 ------------------------- ------------------------- $343,554 $1,555,258
Note: Inter-company disbursements are excluded from this schedule. 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.