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) September 17, 2001
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PAYLESS CASHWAYS, INC.
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(Exact name of registrant as specified in its charter)
DELAWARE 0-4437 42-0945849
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(State or other jurisdiction (Commission (IRS Employer
of incorporation) File Number) Identification No.)
800 NW Chipman Road, Suite 5900
P.O. Box 648001
Lee's Summit, Missouri 64064-8001
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(Address of principal executive offices) (Zip Code)
Registrant's telephone number, including area code (816) 347-6000
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Not applicable
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(Former name or former address, if changed since last report)
Item 5. Other Events
Payless Cashways, Inc. issued a press release today announcing the appointment of a
trustee to oversee final liquidation.
Pursuant to Bankruptcy Rule 2015 and the United States Trustee's Operating Guidelines and
Reporting Requirements for chapter 11 cases, the Company is obligated to file monthly
operating reports with the Bankruptcy Court. The Company's unaudited monthly operating
report for the period from July 29, 2001 to August 25, 2001 (the "Operating Report") is filed
as Exhibit 99.2 hereto and incorporated herein by reference.
The Company cautions readers not to place undue reliance upon the information contained in
the Operating Report since it contains unaudited information and is in a format prescribed
by the applicable bankruptcy laws. There can be no assurance that the Operating Report is
complete. The Operating Report also contains information for periods that may be shorter
or otherwise different from those contained in the Company's reports pursuant to the
Securities Exchange Act of 1934, as amended. Moreover, the Operating Report and other
communications from the Company may include forward-looking statements subject to various
assumptions regarding the Company's operating performance that may not be realized and are
subject to significant business, economic and competitive uncertainties and contingencies,
many of which are beyond the Company's control. Consequently, such matters should not be
regarded as a representation or warranty by the Company that such matters will be realized
or are indicative of the Company's financial condition or operating results for future
periods. Actual results for such periods may differ materially from the information
contained in the Operating Report and the Company undertakes no obligation to update or
revise the Operating Report.
Item 7. Financial Statements and Exhibits.
(c) EXHIBITS. The following exhibit is filed herewith:
99.1 Press Release dated September 17, 2001.
99.2 Unaudited monthly operating report for the period from July 29, 2001
to August 25, 2001.
SIGNATURE
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.
Date: September 17, 2001
PAYLESS CASHWAYS, INC.
By: /s/ Richard B. Witaszak
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Richard B. Witaszak, Senior Vice
President - Finance and Chief
Financial Officer
Exhibit 99.1
FOR IMMEDIATE RELEASE
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Contact: Richard B. Witaszak
Senior Vice President - Finance and Chief Financial Officer
(816) 347-6974
rwitaszak@payless.cashways.com
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PAYLESS CASHWAYS, INC. CONFIRMS APPOINTMENT
OF TRUSTEE TO OVERSEE FINAL LIQUIDATION
KANSAS CITY, MO - September 17, 2001 - Payless Cashways, Inc. (OTC: PCSH) officials
confirmed that a Chapter 11 trustee has been appointed by the United States Bankruptcy Court
to oversee the final liquidation of the company.
At a hearing September 10, 2001, the United States Bankruptcy Court appointed Silverman
Consulting, Inc. of Skokie, Illinois as trustee of the company in response to a motion from
the Official Unsecured Creditor's Committee. The motion outlined the Committee's position
that the Silverman Consulting Group's extensive bankruptcy and liquidation expertise was
appropriate and necessary due to the size and complexity of the case. The trustee's budget
for total liquidation of the company is expected to be finalized by the Bankruptcy Court at
a hearing scheduled for September 25, 2001.
Going-out-of-business sales are currently in progress at all of the company's 110 stores.
Following approval of the liquidation budget, the trustee will complete
going-out-of-business sales, and then liquidation of the company's remaining real estate
will follow. The entire liquidation process is expected to take several months.
Company officials are unable to predict how much cash will be generated from the
going-out-of-business sales and the sales of various properties. Therefore, it cannot be
predicted at this time how much money will be available to pay unsecured creditors and
administrative claims. At this time it appears unlikely that any funds will be left for
stockholders. The company and its creditors believe, however, that the current course of
action is the best option available under the circumstances. The company will be filing
monthly financial reports in the bankruptcy case.
Forward-Looking Statements
Forward-looking statements are made pursuant to the safe harbor provisions of the Private
Securities Litigation Reform Act of 1995. There are certain important factors that could
cause results to differ materially from those anticipated by the forward-looking
statements made above. These statements are based on the current plans and expectations of
the company. Investors are cautioned that all forward-looking statements involve risks and
uncertainty. Among the factors that could cause actual results to differ materially are
the following: customer demand; the strength of the commercial real estate market;
stability of the work force; consumer spending and debt levels; new and existing housing
activity; product and customer mix; and weather. Additional information concerning these
and other factors is contained in the company's Securities and Exchange Commission
filings.
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Exhibit 99.2
Case Name: Payless Cashways Case No.: 01-42643-ABF
Monthly Operating Report Summary
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for Month of August (7-29-01 thru 8-25-01)
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REVENUE
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Gross Income......................................... $33,984,000
Less Cost of Goods Sold (1).......................... $42,183,000
Materials.....................................$__________________
Direct Labor..................................$__________________
Overhead......................................$__________________
Gross Profit......................................... $(8,199,000)
OPERATING EXPENSES
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Owner/Officer - Draws/Salaries..................... $ 137,900
Other Employee Salaries............................ $ 6,166,100
Advertising and Marketing.......................... $ 527,000
Insurance/Benefits/Work Comp....................... $ 842,000
Payroll Taxes...................................... $ 544,000
Lease and Rent..................................... $ 458,000
Telephone and Utilities............................ $ 639,000
Attorney and Other Professional Fees............... $ 91,351
UST Quarterly Fees................................. $ -
Other Expenses/Income (2)......................... $36,856,649
Total Operating Expenses................................................. $ 46,262,000
Net Income (Loss)................................................. $(54,461,000)
CURRENT ASSETS
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Accounts Receivable at end of month...................................... $ 8,148,749
Increase (Decrease) in Accounts Receivable for month..................... $ 205,065
Inventory at end of month................................................ $130,947,492
Increase (Decrease) in Inventory for month............................... $(10,760,452)
Cash at end of month..................................................... $ 9,647,000
Increase (Decrease) in Cash for month..................................... $ (1,223,000)
LIABILITIES
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Increase (Decrease) in post-petition debt.................................. $ 14,917,000
Increase (Decrease) in pre-petition debt.................................... $(10,517,000)
Taxes payable:
Federal Payroll Taxes....................... $ 1,505,821
State Payroll Taxes......................... $ 128,374
Local Payroll Taxes......................... $ 2,360
State Sales Taxes........................... $ 2,612,888
Real Estate and
Personal Property Taxes.................. $ 1,739,583
Other (describe)............................ $
Total Taxes Payable........................................................... $ 5,989,026
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Includes:
(1) Increased by a special charge for closed stores - $15,000,000
(2) Includes:
Depreciation - $1,178,000
Interest - $2,230,000
Closed Store non-cash special charge - $ 31,700,000