-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: webmaster@www.sec.gov Originator-Key-Asymmetric: MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB MIC-Info: RSA-MD5,RSA, Bph78VZcf0xd1T4GCyh38wqWWgXMBS5ERMumKavC/SvWC22BzBFLYY3ELGYgySCp fI5uNj2wptk7LHpmWxNIKw== 0000927016-01-502501.txt : 20010815 0000927016-01-502501.hdr.sgml : 20010815 ACCESSION NUMBER: 0000927016-01-502501 CONFORMED SUBMISSION TYPE: 8-K PUBLIC DOCUMENT COUNT: 3 CONFORMED PERIOD OF REPORT: 20010731 ITEM INFORMATION: Other events ITEM INFORMATION: Financial statements and exhibits FILED AS OF DATE: 20010814 FILER: COMPANY DATA: COMPANY CONFORMED NAME: CVEO CORP CENTRAL INDEX KEY: 0000716934 STANDARD INDUSTRIAL CLASSIFICATION: RUBBER & PLASTICS FOOTWEAR [3021] IRS NUMBER: 041419731 STATE OF INCORPORATION: MA FISCAL YEAR END: 0102 FILING VALUES: FORM TYPE: 8-K SEC ACT: 1934 Act SEC FILE NUMBER: 033-06161 FILM NUMBER: 1713184 BUSINESS ADDRESS: STREET 1: ONE FORDHAM RD CITY: NORTH READING STATE: MA ZIP: 01864 BUSINESS PHONE: 5086641100 MAIL ADDRESS: STREET 1: ONE FORDHAM ROAD CITY: NORTH READING STATE: MA ZIP: 01864 FORMER COMPANY: FORMER CONFORMED NAME: CONVERSE INC DATE OF NAME CHANGE: 19940824 8-K 1 d8k.txt FORM 8-K UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM 8-K CURRENT REPORT PURSUANT TO SECTION 13 OR 15(D) OF THE SECURITIES EXCHANGE ACT OF 1934 Date of Report (Date of earliest event reported): July 31, 2001 CVEO Corporation (Exact name of registrant specified in Charter) Delaware 1-13430 04-1419731 - -------------------------------------------------------------------------------- (State or other (Commission (I.R.S. Employer jurisdiction of incorporation) File Number) Identification No.) One Fordham Road, North Reading, MA 01864 - -------------------------------------------------------------------------------- (Address of principal executive offices) Zip Code Registrant's telephone, including area code: 978.664.1100 -------------- - -------------------------------------------------------------------------------- (Former name and former address, if changed since last report) ITEM 5. OTHER EVENTS 1. Pursuant to Bankruptcy Rule 2015, on July 31, 2001 CVEO Corporation (the "Company"), formerly named Converse Inc., filed its monthly operating report covering the period ending June 30, 2001 with the United States Bankruptcy Court for the District of Delaware. Attached as Exhibit 99.1 to this Form 8-K is the following financial information included in such monthly operating report: . Consolidated Balance Sheet as of April 30, 2001.* . Consolidated Balance Sheet as of May 31, 2001.* . Consolidated Balance Sheet as of June 30, 2001. . Consolidated Income Statement for the month of April 2001 and year to date.* . Consolidated Income Statement for the month of May 2001 and year to date.* . Consolidated Income Statement for the month of June 2001 and year to date. . Schedule of Cash Receipts and Disbursements January 22, 2001 to June 30, 2001. * Revised to include sale price adjustments in connection with the sale of assets to Footwear Acquisition LLC arising from post-closing audit of accounts receivable and inventory. 2. On August 8, 2001 the Company issued a press release, a copy of which is filed as Exhibit 99.2 ITEM 7. FINANCIAL STATEMENTS AND EXHIBITS (c) Exhibits -------- 99.1 Financial Information 99.2 Press Release dated August 8, 2001 SIGNATURES Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, hereunto duly authorized, in North Reading, Massachusetts on August 10, 2001. CVEO CORPORATION By: /s/ James E. Lawlor ------------------- James E. Lawlor Senior Vice President and Chief Financial Officer 2 INDEX TO EXHIBITS Exhibit Page - --------- ---- 99.1 Financial Information 4 99.2 Press Release dated August 8, 2001 12 3 EX-99.1 3 dex991.txt FINANCIAL INFORMATION EXHIBIT 99.1 CVEO CORPORATION f/k/a CONVERSE INC. CONSOLIDATED BALANCE SHEET CVEO Corporation f/k/a Converse Inc.(debtor) and subsidiaries (non-debtor) APRIL 2001 Ending Balance 4/30/01 --------------- ASSETS CURRENT ASSETS Cash and cash equivalents 57,491,700 Accounts receivables 1,598,775 Receivable from subsidiaries - Inventories 256,910 Prepaid expenses and other current assets 1,582,224 --------------- Total current assets 60,929,609 Net property, plant and equipment 5,119,322 Intangible assets Other assets 11,091,163 --------------- 77,140,094 =============== LIABILITIES AND STOCKHOLDERS EQUITY (DEFICIENCY) Current liabilities: Credit facility 0 Current portion long-term debt 102,907,687 Notes payable (94,754) Accounts payable 36,601,286 Accrued expenses 15,603,755 Income taxes payable 6,473,318 --------------- Total current liabilities 161,491,292 Current assets in excess of reorganization value 23,373,382 Stockholders' equity (deficiency): Common stock 17,553,048 Additional paid in capital 4,436,788 Unearned compensation (147,063) Retained deficit (129,088,916) Cumulative currency translation adjustment (478,437) --------------- Total stockholders' equity (deficiency) (107,724,580) --------------- 77,140,094 =============== Note: revised to include audit adjustments to Purchase Price 4 CVEO CORPORATION f/k/a CONVERSE INC. CONSOLIDATED BALANCE SHEET CVEO Corporation f/k/a Converse Inc.(debtor) and subsidiaries (non-debtor) MAY 2001 Ending Balance 5/31/01 -------------- ASSETS CURRENT ASSETS Cash and cash equivalents 27,033,503 Accounts receivables 1,822,488 Receivable from subsidiaries - Inventories 256,909 Prepaid expenses and other current assets 949,506 -------------- Total current assets 30,062,406 Net property, plant and equipment 5,110,906 Investment in subsidiaries - Other assets 8,146,309 -------------- 43,319,621 ============== LIABILITIES AND STOCKHOLDERS EQUITY (DEFICIENCY) Current liabilities: Credit facility 0 Current portion long-term debt 79,001,468 Notes payable (107,888) Accounts payable 34,250,365 Accrued expenses 13,652,704 Income taxes payable 6,495,097 -------------- Total current liabilities 133,291,746 Current assets in excess of reorganization value 23,200,246 Stockholders' equity (deficiency): Common stock 17,553,048 Additional paid in capital 4,436,788 Unearned compensation (131,699) Retained deficit (134,552,071) Cumulative currency translation adjustment (478,437) -------------- Total stockholders' equity (deficiency) (113,172,371) -------------- 43,319,621 ============== Note: revised to include audit adjustments to Purchase Price 5 CVEO CORPORATION f/k/a CONVERSE INC. CONSOLIDATED BALANCE SHEET CVEO Corporation f/k/a Converse Inc. (debtor) and subsidiaries (non-debtor) JUNE 2001 Ending Balance 6/30/01 -------------- ASSETS CURRENT ASSETS Cash and cash equivalents 24,851,194 Accounts receivables 1,628,917 Receivable from subsidiaries - Inventories 256,909 Prepaid expenses and other current assets 1,061,120 --------------- Total current assets 27,798,140 Net property, plant and equipment 4,951,077 Investment in subsidiaries - Other assets 8,139,189 --------------- 40,888,406 =============== LIABILITIES AND STOCKHOLDERS EQUITY (DEFICIENCY) Current liabilities: Credit facility 0 Current portion long-term debt 79,001,468 Notes payable Accounts payable 34,764,083 Accrued expenses 13,347,710 Income taxes payable 6,502,308 --------------- Total current liabilities 133,615,569 Current assets in excess of reorganization value 23,027,110 Stockholders' equity (deficiency): Common stock 17,553,048 Additional paid in capital 4,436,788 Unearned compensation (116,335) Retained deficit (137,149,337) Cumulative currency translation adjustment (478,437) --------------- Total stockholders' equity (deficiency) (115,754,273) --------------- 40,888,406 =============== 6 CVEO CORPORATION f/k/a CONVERSE INC. CONSOLIDATED INCOME STATEMENT CVEO Corporation f/k/a Converse Inc.(debtor) and subsidiaries (non-debtor) APRIL 2001
--------------------------------------------------- Month of Apr. 2001 YTD APR. 2001 --------------------------------------------------- Net revenue 12,005,642 65,867,787 Cost of sales 10,909,294 51,653,368 --------------------------------------------------- Gross profit 1,096,348 14,214,419 Selling, general and administrative expenses 2,535,405 12,981,262 Royalty income 901,663 5,487,569 Restructuring and other unusual charges 782,441 2,243,711 --------------------------------------------------- Earnings from operations (1,319,835) 4,477,015 Interest expense 1,394,116 6,206,461 Other (income) expense, net (35,371,146) (33,780,799) --------------------------------------------------- Net income before income tax 32,657,195 32,051,353 Income tax expense 188,113 881,923 --------------------------------------------------- Net income 32,469,082 31,169,430 =================================================== Note: revised to include audit adjustments to Purchase Price
7 CVEO CORPORATION f/k/a CONVERSE INC. CONSOLIDATED INCOME STATEMENT CVEO Corporation f/k/a Converse Inc.(debtor) and subsidiaries (non-debtor) MAY 2001 -------------------------------- Month of YTD May May 2001 2001 -------------------------------- Net revenue 1,580 65,869,367 Cost of sales (25,067) 51,628,301 ------------------------------- Gross profit 26,647 14,241,066 Selling, general and administrative expenses 1,217,246 14,198,508 Royalty income (9,090) 5,478,479 Restructuring and other unusual charges 560,936 2,804,647 ------------------------------- Earnings from operations (1,760,625) 2,716,390 Interest expense 3,393,175 9,599,636 Other (income) expense, net 281,528 (33,499,271) ------------------------------- Net income before income tax (5,435,328) 26,616,025 Income tax expense 27,829 909,752 ------------------------------- Net income (5,463,157) 25,706,273 =============================== Note: revised to include audit adjustments to Purchase Price 8 CVEO CORPORATION f/k/a CONVERSE INC. CONSOLIDATED INCOME STATEMENT CVEO Corporation f/k/a Converse Inc.(debtor) and subsidiaries (non-debtor) JUNE 2001 -------------------------------- Month of YTD June June 2001 2001 -------------------------------- Net revenue 65,869,367 Cost of sales 120,096 51,748,396 ------------------------------- Gross profit (120,096) 14,120,971 Selling, general and administrative expenses 1,144,376 15,342,883 Royalty income - 5,478,479 Restructuring and other unusual charges 214,919 3,019,566 ------------------------------- Earnings from operations (1,479,391) 1,237,001 Interest expense 499,860 10,099,495 Other (income) expense, net 590,186 (32,909,086) ------------------------------- Net income before income tax (2,569,437) 24,046,592 Income tax expense 27,829 937,581 ------------------------------- Net income (2,597,266) 23,109,011 =============================== 9 CVEO Corporation f/k/a Converse Inc. Shedule of Cash Receipts & Disbursements Form MOR1 $=thousands
Actual Actual Actual Actual Actual Actual Total 1/22-1/27 1/28-2/24 2/25-3/31 4/1-4/30 5/1-5/31 6/1-6/30 1/22-6/30 JAN FEB MAR APR MAY JUNE CASH RECEIPTS: Domestic Accounts 2,413 5,887 10,008 14,007 1,187 33,502 Outlet Stores 255 1,227 1,533 1,495 105 125 4,740 Int'l Distributors 2,315 1,555 6,839 5,038 15,747 Royalty Receipts 119 2,411 385 1,074 3,989 Interest Receipts 3 76 Other Receipts 127 116 9 193 340 785 TOTAL RECEIPTS 5,102 11,207 18,881 21,623 1,488 541 58,763 DISBURSEMENTS: Accounts Payable Raw Materials 69 188 111 21 389 Duties/Customs 96 745 903 380 2,124 Other Disbursements 14 920 1,549 1,436 2,569 883 7,371 Traffic 45 416 584 276 1,321 Advertising/Mktg - 287 75 22 384 Player Contracts - 59 42 - 101 Rent - 252 268 258 778 Capital Expenditures - - - - - Float Adjustment (224) (780) 214 181 (609) - Total Accounts Payable - 2,087 3,746 2,574 2,569 883 11,859 - Foreign Fnshd Gds-L/C 1,141 6,738 7,665 3,909 19,453 Payroll - 1,605 2,484 1,526 3,062 826 9,503 Tax Payments 317 1,053 1,264 802 511 3,947 Japan - 19 113 - 132 Singapore - 96 62 61 219 Other 224 853 1,190 591 2,858 Restructuring Fees - 65 52 163 149 1,307 1,736 TOTAL CASH DISBURSEMENTS 1,682 12,516 16,576 9,626 6,291 3,016 49,707
10 NET CASH REC/DSB BEFORE BA FIN 3,420 (1,309) 2,305 11,997 (4,803) (2,475) 9,056 ----------------------------------------------------------------------------------- ADD BA FINANCING 1,119 6,583 7,529 981 16,212 - LESS BA MATURITY 473 2,343 4,921 19,175 26,912 ------------------------------------------------------------------------------------ NET CASH REC/DSB AFTER BA FINANCING 4,066 2,931 4,913 (6,197) (4,803) (2,475) (1,644) ----------------------------------------------------------------------------------- Proceeds Sale of Assets 92,500 92,500 INTEREST/FEES: BANKS 19 325 677 664 1,685 NOTEHOLDERS 370 877 147 369 1,763 CONVERTIBLE NOTES - - DIP FEE 393 250 643 - BT Loan Payoff - - - 37,039 37,039 Secured Notes Payoff 23,906 23,906 REVOLVER BALANCE 34,983 32,747 29,781 37,039 - - - NET CASH ACTIVITY 26,383 (2,475) 23,908 LETTERS OF CREDIT ADD: - 3,397 4,542 1,747 9,686 SUBTRACT: 1,140 6,736 7,756 3,818 19,450 TOTAL L/C 9,099 5,760 2,546 477 477 BA REFINANCING ADD: 1,119 6,583 7,529 981 16,212 SUBTRACT: 473 2,342 4,920 19,174 26,909 TOTAL B/A REFINANCING 11,345 15,584 18,193 - - STANDBY L/C 828 828 828 828 919 919 919 TOTAL INE UTILIS/CASH 56,255 54,920 51,348 38,344 25,464 22,989 22,989 BALANCE -----------------------------------------------------------------------------------
11 EX-99.2 4 dex992.txt PRESS RELEASE EXHIBIT 99.2 Investor Contact and Media Contact FOR IMMEDIATE RELEASE Jack A. Green, Senior Vice President Administration, General Counsel and Secretary 978/664-7577 CVEO CORPORATION ANNOUNCES STATUS OF BANKRUPTCY North Reading, MA, August 8, 2001 - CVEO Corporation, formerly known as Converse Inc., announced today that it continues to sell its remaining assets under the supervision of the U.S. Bankruptcy Court in Delaware. No determination has been made as to when a distribution will be made to unsecured creditors or the amount thereof. As previously disclosed, the Company does not expect any distribution or payment to holders of common stock as a result of the liquidation. * * * This press release contains "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. Words such as "expect," "believe," "intend" and words or terms of similar substance used in connection with any discussion of future events identify forward-looking statements. All forward-looking statements are management's present expectations of future events that are subject to a number of factors and uncertainties that could cause actual results to differ materially from those described in the forward-looking statements. 12 -----END PRIVACY-ENHANCED MESSAGE-----