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 -----------------------------------------------------------------------------------
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