-----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, SIShVnpQtPsUSNhKHQg/UQjBfq5b7yuZHBcoq+zPvFlYRCO0Gna3P8die3+10VV3 R0WQPEIc3saUSf8eNdKRgw== 0000849101-04-000016.txt : 20040423 0000849101-04-000016.hdr.sgml : 20040423 20040423102203 ACCESSION NUMBER: 0000849101-04-000016 CONFORMED SUBMISSION TYPE: 8-K PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 20040423 ITEM INFORMATION: ITEM INFORMATION: Financial statements and exhibits FILED AS OF DATE: 20040423 FILER: COMPANY DATA: COMPANY CONFORMED NAME: AVADO BRANDS INC CENTRAL INDEX KEY: 0000849101 STANDARD INDUSTRIAL CLASSIFICATION: RETAIL-EATING PLACES [5812] IRS NUMBER: 592778983 STATE OF INCORPORATION: GA FISCAL YEAR END: 0103 FILING VALUES: FORM TYPE: 8-K SEC ACT: 1934 Act SEC FILE NUMBER: 000-19542 FILM NUMBER: 04749589 BUSINESS ADDRESS: STREET 1: HANCOCK AT WASHINGTON CITY: MADISON STATE: GA ZIP: 30650 BUSINESS PHONE: 7063424552 MAIL ADDRESS: STREET 1: HANCOCK AT WASHINGTON CITY: MADISON STATE: GA ZIP: 30650 FORMER COMPANY: FORMER CONFORMED NAME: APPLE SOUTH INC DATE OF NAME CHANGE: 19950111 8-K 1 morfeb8k.txt FORM 8-K 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): April 6, 2004 AVADO BRANDS, INC. ------------------------------------------------------ (Exact name of Registrant as Specified in its Charter) Georgia 0-19542 59-2778983 - ------------------------------- ---------------- ------------------- (State or other Jurisdiction of (Commission File (IRS Employer Incorporation or Organization) Number) Identification No.) Hancock at Washington Madison, Georgia 30650 - ---------------------------------------- ------------------------- (Address) (Zip Code) Registrant's telephone number, including area code: (706) 342-4552 Not Applicable (Former name or former address, if changed since last report) ITEM 7. FINANCIAL STATEMENTS, PRO FORMA INFORMATION AND EXHIBITS (a) Financial Statements of Businesses Acquired: None. (b) Pro Forma Financial Information: None. (c) Exhibits: 99.1 Monthly Operating Report for the period ended February 22,2004. 2 ITEM 12: Results of Operations and Financial Condition On February, 4, 2004, Avado Brands, Inc. (the "Company") filed a voluntary petition under Chapter 11 of the United States Bankruptcy Code (the "Bankruptcy Code") in the United States Bankruptcy Court for the Northern District of Texas (the "Bankruptcy Court"). Honorable Chief Judge Steven A. Felsenthal of the Bankruptcy Court was assigned to preside over the case, which is administered as Case No. 04-31555. Pursuant to the United States Bankruptcy Code, the Company's monthly operating report for the period ended February 22, 2004 (the "Report") was filed with the Bankruptcy Court on April 6, 2004. The Report is attached to this Current Report on Form 8-K as exhibit 99.1. The Report contains financial statements and other financial information that have not been audited or reviewed by independent accountants, are not presented in accordance with generally accepted accounting principles, and may be subject to future reconciliation and adjustments. The information in this Report, including the Exhibit attached hereto, is furnished solely pursuant to Item 12 of this Form 8-K. Consequently, it is not deemed "filed" for the purposes of Section 18 of the Securities Exchange Act of 1934, or otherwise subject to the liabilities of that section. It may only be incorporated by reference in another filing under the Exchange Act or Securities Act of 1934 if such subsequent filing specifically references this Form 8-K. 3 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. AVADO BRANDS, INC. By:/s/Louis J. Profumo ---------------------- Louis J. Profumo Chief Financial Officer Date: April 23, 2004 4 EX-99 3 morfeb.txt EXHIBIT 99.1 - MONTHLY OPERATING REPORTS EXHIBIT 99.1 Monthly Operating Report CASE NAME: Avado Brands, Inc. ACCRUAL BASIS CASE NUMBER: 04-31555 rwd, 2/04 JUDGE: Felsenthal UNITED STATES BANKRUPTCY COURT NORTHERN DISTRICT OF TEXAS DIVISION 6 MONTHLY OPERATING REPORT MONTH ENDING: February 22, 2004 IN ACCORDANCE WITH TITLE 28, SECTION 1746, OF THE UNITED STATES CODE, I DECLARE UNDER PENALTY OF PERJURY THAT I HAVE EXAMINED THE FOLLOWING MONTHLY OPERATING REPORT (ACCRUAL BASIS-1 THROUGH ACCRUAL BASIS-7) AND THE ACCOMPANING ATTACHMENTS AND, TO THE BEST OF MY KNOWLEDGE, THESE DOCUMENTS ARE TRUE, CORRECT AND COMPLETE. DECLARATION OF THE PREPARER (OTHER THAN RESPONSIBLE PARTY) IS BASED ON ALL INFORMATION OF WHICH PREPARER HAS ANY KNOWLEDGE. RESPONSIBLE PARTY: /s/Timothy R. Ligon VP and Controller ------------------------------------------- -------------------- ORIGINAL SIGNATURE OF RESPONSIBLE PARTY TITLE Timothy R. Ligon April 5, 2004 ------------------------------------------- -------------------- PRINTED NAME OF RESPONSIBLE PARTY DATE PREPARER: /s/Steve Reinsch Assistant Controller ------------------------------------------- -------------------- ORIGINAL SIGNATURE OF PREPARER TITLE Steve Reinsch April 5, 2004 ------------------------------------------- -------------------- PRINTED NAME OF PREPARER DATE 1 Monthly Operating Report CASE NAME: Avado Brands, Inc. ACCRUAL BASIS-1 CASE NUMBER: 04-31555 rwd, 2/04 See Attached Schedule COMPARATIVE BALANCE SHEET - ------------------------------------------------------------------------------- SCHEDULE MONTH MONTH MONTH ASSETS AMOUNT - ------------------------------------------------------------------------------- 1. UNRESTRICTED CASH - ------------------------------------------------------------------------------- 2. RESTRICTED CASH - ------------------------------------------------------------------------------- 3. TOTAL CASH #VALUE! #VALUE! #VALUE! $0 - ------------------------------------------------------------------------------- 4. ACCOUNTS RECEIVABLE (NET) - ------------------------------------------------------------------------------- 5. INVENTORY - ------------------------------------------------------------------------------- 6. NOTES RECEIVABLE - ------------------------------------------------------------------------------- 7. PREPAID EXPENSES - ------------------------------------------------------------------------------- 8. OTHER (ATTACH LIST) - ------------------------------------------------------------------------------- 9. TOTAL CURRENT ASSETS #VALUE! #VALUE! #VALUE! $0 - ------------------------------------------------------------------------------- 10. PROPERTY, PLANT & EQUIPMENT - ------------------------------------------------------------------------------- 11. LESS: ACCUMULATED DEPRECIATION / DEPLETION - ------------------------------------------------------------------------------- 12. NET PROPERTY, PLANT & EQUIPMENT #VALUE! #VALUE! #VALUE! $0 - ------------------------------------------------------------------------------- 13. DUE FROM INSIDERS - ------------------------------------------------------------------------------- 14. OTHER ASSETS - NET OF AMORTIZATION (ATTACH LIST) - ------------------------------------------------------------------------------- 15. OTHER (ATTACH LIST) - ------------------------------------------------------------------------------- 16. TOTAL ASSETS #VALUE! #VALUE! #VALUE! $0 - ------------------------------------------------------------------------------- POSTPETITION LIABILITIES - ------------------------------------------------------------------------------- 17. ACCOUNTS PAYABLE - ------------------------------------------------------------------------------- 18. TAXES PAYABLE - ------------------------------------------------------------------------------- 19. NOTES PAYABLE - ------------------------------------------------------------------------------- 20. PROFESSIONAL FEES - ------------------------------------------------------------------------------- 21. SECURED DEBT - ------------------------------------------------------------------------------- 22. OTHER (ATTACH LIST) - ------------------------------------------------------------------------------- 23. TOTAL POSTPETITION LIABILITIES $0 $0 $0 - ------------------------------------------------------------------------------- PREPETITION LIABILITIES - ------------------------------------------------------------------------------- 24. SECURED DEBT - ------------------------------------------------------------------------------- 25. PRIORITY DEBT - ------------------------------------------------------------------------------- 26. UNSECURED DEBT - ------------------------------------------------------------------------------- 27. OTHER (ATTACH LIST) - ------------------------------------------------------------------------------- 28. TOTAL PREPETITION LIABILITIES $0 $0 $0 $0 - ------------------------------------------------------------------------------- 29. TOTAL LIABILITIES $0 $0 $0 $0 - ------------------------------------------------------------------------------- EQUITY - ------------------------------------------------------------------------------- 30. PREPETITION OWNERS' EQUITY - ------------------------------------------------------------------------------- 31. POSTPETITION CUMULATIVE PROFIT OR (LOSS) - ------------------------------------------------------------------------------- 32. DIRECT CHARGES TO EQUITY (ATTACH EXPLANATION) - ------------------------------------------------------------------------------- 33. TOTAL EQUITY $0 $0 $0 $0 - ------------------------------------------------------------------------------- 34. TOTAL LIABILITIES & OWNERS' EQUITY $0 $0 $0 $0 - ------------------------------------------------------------------------------- 2 Avado Brands, Inc. Consolidated Balance Sheet As of February 22, 2004 (Amounts in Thousands)
Don Total Pablo's Hops Corporate Eliminate Avado - ---------------------------------------------------------------------------------------------------- ASSETS CURRENT ASSETS: Cash & Cash Equivalents $ 569.4 724.0 872.9 - 2,166.3 Restricted Cash - - 18,199.2 - 18,199.2 Short Term Investments - - - - - - ---------------------------------------------------------------------------------------------------- Total Cash and Cash Equivalents 569.4 724.0 19,072.1 - 20,365.5 Accounts Receivable 2,349.7 1,227.9 1,233.2 - 4,810.8 Inventories 2,348.9 1,920.9 11.0 - 4,280.8 Prepaid Expenses 982.2 726.8 1,015.8 - 2,724.8 Other Current Assets - - 1,469.5 - 1,469.5 Assets Held for Sale - - - - - - ---------------------------------------------------------------------------------------------------- Total Current Assets 6,250.2 4,599.6 22,801.6 - 33,651.4 PREMISES AND EQUIPMENT: Land 9,006.4 2,850.0 406.8 - 12,263.2 Buildings - Owned 17,140.2 4,352.5 8,505.5 - 29,998.2 Buildings Under Ground Lease 88,316.8 33,173.4 - - 121,490.2 Leasehold Improvements 3,599.4 5,022.8 1.2 - 8,623.4 Furniture & Equipment 52,883.8 23,583.9 3,749.8 - 80,217.5 Building Under Capital Lease 3,855.0 780.0 - - 4,635.0 Asset Revaluation - - - - - Construction in Progress 3.8 (.1) - - 3.7 - ---------------------------------------------------------------------------------------------------- Total Premises & Equipment 174,805.4 69,762.5 12,663.3 - 257,231.2 Less: Accumulated Depreciation and Amortization (71,711.8) (17,089.9) (6,921.5) - (95,723.2) - ---------------------------------------------------------------------------------------------------- Premises and Equipment, Net 103,093.6 52,672.6 5,741.8 161,508.0 Goodwill Goodwill Allocation 67,739.0 (7,335.0) - (60,404.0) - Less: Accumulated Amortization - - - - - - ---------------------------------------------------------------------------------------------------- Goodwill, Net 67,739.0 (7,335.0) - (60,404.0) - Notes Receivable - - - - - Def. Loan/Lease Costs, Net - - 5,515.5 - 5,515.5 Prepaid Rent/Int.-SLB, Net 9,631.2 8,133.0 - - 17,764.2 Deferred Income Tax Benefit - - 11,620.0 - 11,620.0 Other Assets, Net 1,861.4 1,006.3 1,144.2 - 4,011.9 - ---------------------------------------------------------------------------------------------------- Total Assets $188,575.4 59,076.5 46,823.1 (60,404.0) 234,071.0 ==================================================================================================== LIABILITIES AND S/H EQUITY (DEFICIT) LIABILITIES NOT SUBJECT TO COMPROMISE CURRENT LIABILITIES: ACCOUNTS PAYABLE: Bank Overdrafts $ - - 1,057.6 - 1,057.6 Accounts Payable 1,500.8 1,570.2 409.3 - 3,480.3 Accounts Payable - Related 10,518.4 41,096.5 (532.7) (51,086.7) (4.5) Intercompany Allocation 105,672.9 46,425.9 20,643.2 (172,742.0) - - ---------------------------------------------------------------------------------------------------- Total Accounts Payable 117,692.1 89,092.6 21,577.4 (223,828.7) 4,533.4 ACCRUED LIABILITIES: Payroll 2,734.2 2,142.5 215.3 - 5,092.0 Bonuses 348.1 333.9 78.1 - 760.1 Benefits and Taxes 359.4 301.4 1,287.5 - 1,948.3 Rents 2,039.3 1,960.5 - - 3,999.8 Interest - - 200.0 - 200.0 Insurance - - 4,986.2 - 4,986.2 Property Taxes 1,099.4 323.8 (.3) - 1,422.9 Sales Tax Payable 1,145.6 1,091.4 6.4 - 2,243.4 Other 1,650.3 1,449.8 1,145.8 - 4,245.9 - ---------------------------------------------------------------------------------------------------- Total Accrued Liabilities 9,376.3 7,603.3 7,919.0 - 24,898.6 Current Installments of Long-Term Debt - - 33,510.0 - 33,510.0 Income Tax - - 119.5 - 119.5 - ---------------------------------------------------------------------------------------------------- Total Current Liabilities 127,068.4 96,695.9 63,125.9 (223,828.7) 63,061.5 Long-Term Debt - - - - - Capital Lease Obligation - - - - - Other Long-Term Liabilities 282.2 606.3 - - 888.5 - ---------------------------------------------------------------------------------------------------- Total Liabilities not Subject to Compromise 127,350.6 97,302.2 63,125.9 (223,828.7) 63,950.0 Liabilities Subject to Compromise 11,010.2 5,397.2 214,198.5 - 230,605.9 - ---------------------------------------------------------------------------------------------------- Total Liabilities 138,360.8 102,699.4 277,324.4 (223,828.7) 294,555.9 Convertible Securities - - 3,179.5 - 3,179.5 SHAREHOLDERS' EQUITY (DEFICIT) Common Stock 30.9 - 404.8 - 435.7 Additional Paid-In Capital 9,628.6 25,913.0 52,710.4 66,080.0 154,332.0 Retained Earnings 38,983.4 (69,681.5) (175,222.9) 97,344.7 (108,576.3) Net Earnings 1,571.7 145.6 (8,114.3) - (6,397.0) Less: Dividends Paid - - (7,042.0) - (7,042.0) - ---------------------------------------------------------------------------------------------------- Total Shareholders' Equity (Deficit) 50,214.6 (43,622.9) (137,264.0) 163,424.7 32,752.4 Less: Treasury Stock - - (96,416.8) - (96,416.8) - ---------------------------------------------------------------------------------------------------- Total Liabilities & Shareholders' Equity (Deficit) $188,575.4 59,076.5 46,823.1 (60,404.0) 234,071.0 ====================================================================================================
3 Avado Brands, Inc. Consolidated Balance Sheet As of January 02, 2005 (Amounts in Thousands)
January February - ------------------------------------------------------------------------ ASSETS CURRENT ASSETS: Cash & Cash Equivalents $ 2,114.1 2,166.3 Restricted Cash - 18,199.2 Short Term Investments - - - ----------------------------------------------------------------------- Total Cash and Cash Equivalents 2,114.1 20,365.5 Accounts Receivable 4,900.5 4,810.8 Inventories 4,416.5 4,280.7 Prepaid Expenses 2,247.8 2,724.8 Other Current Assets 710.7 1,469.5 Assets Held for Sale - - - ----------------------------------------------------------------------- Total Current Assets 14,389.6 33,651.3 PREMISES AND EQUIPMENT: Land 12,263.1 12,263.1 Buildings - Owned 29,997.1 29,998.1 Buildings Under Ground Lease 122,812.8 121,490.1 Leasehold Improvements 8,642.4 8,623.5 Furniture & Equipment 80,964.3 80,217.4 Building Under Capital Lease 4,635.0 4,635.0 Asset Revaluation (1,831.5) - Construction in Progress 3.7 3.7 - ----------------------------------------------------------------------- Total Premises & Equipment 257,486.9 257,230.9 Less: Accumulated Depreciation and Amortization (95,142.1) (95,723.3) - ----------------------------------------------------------------------- Premises and Equipment, Net 162,344.8 161,507.6 Goodwill - - Goodwill Allocation - - Less: Accumulated Amortization - - - ----------------------------------------------------------------------- Goodwill, Net - - Notes Receivable Def. Loan/Lease Costs, Net 5,560.9 5,515.5 Prepaid Rent/Int.-SLB, Net 17,857.4 17,764.2 Deferred Income Tax Benefit 11,620.0 11,620.0 Other Assets, Net 3,851.4 4,011.9 - ----------------------------------------------------------------------- Total Assets $215,624.1 234,070.5 ======================================================================= LIABILITIES AND S/H EQUITY (DEFICIT) LIABILITIES NOT SUBJECT TO COMPROMISE CURRENT LIABILITIES: ACCOUNTS PAYABLE: Bank Overdrafts $ 3,567.5 1,057.6 Accounts Payable 9,049.6 3,480.2 Accounts Payable - Related (4.0) (4.0) Intercompany Allocation - - - ------------------------------------------------------------------------ Total Accounts Payable 12,613.1 4,533.8 ACCRUED LIABILITIES: Payroll 4,993.9 5,092.1 Bonuses 576.4 760.0 Benefits and Taxes 1,992.1 1,948.2 Rents 3,986.0 3,999.8 Interest 10,881.7 200.0 Insurance 7,904.3 4,986.2 Property Taxes 2,341.7 1,422.9 Sales Tax Payable 1,747.8 2,243.3 Other 9,998.6 4,246.0 - ------------------------------------------------------------------------- Total Accrued Liabilities 44,422.5 24,898.5 Current Installments of Long-Term Debt 15,527.4 33,510.0 Income Tax 41,111.3 119.5 - ------------------------------------------------------------------------- Total Current Liabilities 113,674.3 63,061.8 Long-Term Debt 152,571.8 - Capital Lease Obligation 4,619.6 - Other Long-Term Liabilities 2,304.3 888.5 - ------------------------------------------------------------------------- Total Liabilities not Subject to Compromise 273,170.0 63,950.3 Liabilities Subject to Compromise - 230,605.9 - ------------------------------------------------------------------------- Total Liabilities 273,170.0 294,556.2 Convertible Securities 3,179.5 3,179.5 SHAREHOLDERS' EQUITY (DEFICIT) Common Stock 435.7 435.7 Additional Paid-In Capital 154,332.0 154,332.0 Retained Earnings (108,576.7) (108,576.7) Net Earnings (3,457.6) (6,397.4) Less: Dividends Paid (7,042.0) (7,042.0) - ------------------------------------------------------------------------- Total Shareholders' Equity (Deficit) 35,691.4 32,751.6 Less: Treasury Stock (96,416.8) (96,416.8) - ------------------------------------------------------------------------- Total Liabilities & Shareholders' Equity (Deficit) $215,624.1 234,070.5 =========================================================================
4 Monthly Operating Report CASE NAME: Avado Brands, Inc. ACCRUAL BASIS-2 CASE NUMBER: 04-31555 rwd, 2/04 CONSOLIDATED INCOME STATEMENT MONTH MONTH MONTH QUARTER REVENUES February TOTAL - ------------------------------------------------------------------------------- 1. GROSS REVENUES $27,336 - ------------------------------------------------------------------------------- 2. LESS: RETURNS & DISCOUNTS $253 - ------------------------------------------------------------------------------- 3. NET REVENUE $27,083 $0 $0 $0 - ------------------------------------------------------------------------------- COST OF GOODS SOLD - ------------------------------------------------------------------------------- 4. COGS $7,437 - ------------------------------------------------------------------------------- 5. PAYROLL & BENEFITS $9,710 - ------------------------------------------------------------------------------- 6. - ------------------------------------------------------------------------------- 7. TOTAL COST OF GOODS SOLD $17,147 $0 $0 $0 - ------------------------------------------------------------------------------- 8. GROSS PROFIT $9,936 $0 $0 $0 - ------------------------------------------------------------------------------- OPERATING EXPENSES - ------------------------------------------------------------------------------- 9. CONTROLLABLE EXPENSES $4,008 - ------------------------------------------------------------------------------- 10. - ------------------------------------------------------------------------------- 11. GENERAL & ADMINISTRATIVE $1,479 - ------------------------------------------------------------------------------- 12. RENT & LEASE $1,467 - ------------------------------------------------------------------------------- 13. OTHER (See Notes) $1,567 - ------------------------------------------------------------------------------- 14. TOTAL OPERATING EXPENSES $8,521 $0 $0 $0 - ------------------------------------------------------------------------------- 15. INCOME BEFORE NON-OPERATING INCOME & EXPENSE $1,415 $0 $0 $0 - ------------------------------------------------------------------------------- OTHER INCOME & EXPENSES - ------------------------------------------------------------------------------- 16. NON-OPERATING INCOME $46 - ------------------------------------------------------------------------------- 17. NON-OPERATING EXPENSE $0 - ------------------------------------------------------------------------------- 18. INTEREST EXPENSE $2,007 - ------------------------------------------------------------------------------- 19. DEPRECIATION / DEPLETION $965 - ------------------------------------------------------------------------------- 20. AMORTIZATION $48 - ------------------------------------------------------------------------------- 21. OTHER $22 - ------------------------------------------------------------------------------- 22. NET OTHER INCOME & EXPENSES $2,996 $0 $0 $0 - ------------------------------------------------------------------------------- REORGANIZATION EXPENSES - ------------------------------------------------------------------------------- 23. PROFESSIONAL FEES (See Notes) $1,359 - ------------------------------------------------------------------------------- 24. U.S. TRUSTEE FEES $0 - ------------------------------------------------------------------------------- 25. OTHER (ATTACH LIST) $0 - ------------------------------------------------------------------------------- 26. TOTAL REORGANIZATION EXPENSES $1,359 $0 $0 $0 - ------------------------------------------------------------------------------- 27. INCOME TAX - ------------------------------------------------------------------------------- 28. NET PROFIT (LOSS) ($2,940) $0 $0 $0 - ------------------------------------------------------------------------------- Notes: Amounts are in thousands. February's Income Statement is for Avado's fiscal month-end, representing the period January 26 to February 22. Therefore, pre and post-petition activity is included. Line 13: Other Operating Expenses are primarily comprised of marketing, insurance and taxes. Line 23: Professional fees associated with the reorganization were paid pre-petition. 5 Monthly Operating Report CASE NAME: Avado Brands, Inc. ACCRUAL BASIS-2.1 CASE NUMBER: 04-31555 rwd, 2/04 CONSOLIDATING INCOME STATEMENT Don Pablo's Hops Corporate Consolidated REVENUES TOTAL - ------------------------------------------------------------------------------- 1. GROSS REVENUES $17,298 $10,038 $0 $27,336 - ------------------------------------------------------------------------------- 2. LESS:RETURNS & DISCOUNTS $216 $37 $253 - ------------------------------------------------------------------------------- 3. NET REVENUE $17,082 $10,001 $0 $27,083 - ------------------------------------------------------------------------------- COST OF GOODS SOLD - ------------------------------------------------------------------------------- 4. COGS $4,365 $3,072 $7,437 - ------------------------------------------------------------------------------- 5. PAYROLL & BENEFITS $6,116 $3,594 $9,710 - ------------------------------------------------------------------------------- 6. - ------------------------------------------------------------------------------- 7. TOTAL COST OF GOODS SOLD $10,481 $6,666 $0 $17,147 - ------------------------------------------------------------------------------- 8. GROSS PROFIT $6,601 $3,335 $0 $9,936 - ------------------------------------------------------------------------------- OPERATING EXPENSES - ------------------------------------------------------------------------------- 9. CONTROLLABLE EXPENSES $2,426 $1,582 $4,008 - ------------------------------------------------------------------------------- 10. - ------------------------------------------------------------------------------- 11. GENERAL & ADMINISTRATIVE $594 $149 $736 $1,479 - ------------------------------------------------------------------------------- 12. RENT & LEASE $858 $609 $1,467 - ------------------------------------------------------------------------------- 13. OTHER (See Notes) $1,206 $361 $1,567 - ------------------------------------------------------------------------------- 14. TOTAL OPERATING EXPENSES $5,084 $2,701 $736 $8,521 - ------------------------------------------------------------------------------- 15. INCOME BEFORE NON-OPERATING INCOME & EXPENSE $1,517 $634 ($736) $1,415 - ------------------------------------------------------------------------------- OTHER INCOME & EXPENSES - ------------------------------------------------------------------------------- 16. NON-OPERATING INCOME $0 $0 $46 $46 - ------------------------------------------------------------------------------- 17. NON-OPERATING EXPENSE $0 $0 $0 $0 - ------------------------------------------------------------------------------- 18. INTEREST EXPENSE $0 $0 $2,007 $2,007 - ------------------------------------------------------------------------------- 19. DEPRECIATION / DEPLETION $612 $353 $965 - ------------------------------------------------------------------------------- 20. AMORTIZATION ($7) $55 $48 - ------------------------------------------------------------------------------- 21. OTHER ($1) $23 $22 - ------------------------------------------------------------------------------- 22. NET OTHER INCOME & EXPENSES $604 $431 $1,961 $2,996 - ------------------------------------------------------------------------------- REORGANIZATION EXPENSES - ------------------------------------------------------------------------------- 23. PROFESSIONAL FEES (See Notes) $0 $0 $1,359 $1,359 - ------------------------------------------------------------------------------- 24. U.S. TRUSTEE FEES $0 $0 $0 $0 - ------------------------------------------------------------------------------- 25. OTHER (ATTACH LIST) $0 - ------------------------------------------------------------------------------- 26. TOTAL REORGANIZATION EXPENSES $0 $0 $1,359 $1,359 - ------------------------------------------------------------------------------- 27. INCOME TAX - ------------------------------------------------------------------------------- 28. NET PROFIT (LOSS) $913 $203 ($4,056) ($2,940) - ------------------------------------------------------------------------------- Notes: Amounts are in thousands. February's Income Statement is for Avado's fiscal month-end, representing the period January 26 to February 22. Therefore, pre and post-petition activity is included. Line 13: Other Operating Expenses in DP's and Hops are primarily comprised of marketing, insurance and taxes. Line 23: Professional fees associated with the reorganization were paid pre-petition. 6 Monthly Operating Report CASE NAME: Avado Brands, Inc. ACCRUAL BASIS-3 CASE NUMBER: 04-31555 rwd, 2/04 See Attached Schedule CASH RECEIPTS AND MONTH MONTH MONTH QUARTER DISBURSEMENTS TOTAL - ------------------------------------------------------------------------------- 1. CASH - BEGINNING OF MONTH $0 $0 $0 - ------------------------------------------------------------------------------- RECEIPTS FROM OPERATIONS - ------------------------------------------------------------------------------- 2. CASH SALES - ------------------------------------------------------------------------------- COLLECTION OF ACCOUNTS RECEIVABLE - ------------------------------------------------------------------------------- 3. PREPETITION - ------------------------------------------------------------------------------- 4. POSTPETITION - ------------------------------------------------------------------------------- 5. TOTAL OPERATING RECEIPTS $0 $0 $0 $0 - ------------------------------------------------------------------------------- NON - OPERATING RECEIPTS - ------------------------------------------------------------------------------- 6. LOANS & ADVANCES (ATTACH LIST) - ------------------------------------------------------------------------------- 7. SALE OF ASSETS - ------------------------------------------------------------------------------- 8. OTHER (ATTACH LIST) - ------------------------------------------------------------------------------- 9. TOTAL NON-OPERATING RECEIPTS $0 $0 $0 $0 - ------------------------------------------------------------------------------- 10. TOTAL RECEIPTS $0 $0 $0 $0 - ------------------------------------------------------------------------------- 11. TOTAL CASH AVAILABLE $0 $0 $0 $0 - ------------------------------------------------------------------------------- OPERATING DISBURSEMENTS - ------------------------------------------------------------------------------- 12. NET PAYROLL - ------------------------------------------------------------------------------- 13. PAYROLL TAXES PAID - ------------------------------------------------------------------------------- 14. SALES, USE & OTHER TAXES PAID - ------------------------------------------------------------------------------- 15. SECURED / RENTAL / LEASES - ------------------------------------------------------------------------------- 16. UTILITIES - ------------------------------------------------------------------------------- 17. INSURANCE - ------------------------------------------------------------------------------- 18. INVENTORY PURCHASES - ------------------------------------------------------------------------------- 19. VEHICLE EXPENSES - ------------------------------------------------------------------------------- 20. TRAVEL - ------------------------------------------------------------------------------- 21. ENTERTAINMENT - ------------------------------------------------------------------------------- 22. REPAIRS & MAINTENANCE - ------------------------------------------------------------------------------- 23. SUPPLIES - ------------------------------------------------------------------------------- 24. ADVERTISING - ------------------------------------------------------------------------------- 25. OTHER (ATTACH LIST) - ------------------------------------------------------------------------------- 26. TOTAL OPERATING DISBURSEMENTS $0 $0 $0 $0 - ------------------------------------------------------------------------------- REORGANIZATION EXPENSES - ------------------------------------------------------------------------------- 27. PROFESSIONAL FEES - ------------------------------------------------------------------------------- 28. U.S. TRUSTEE FEES - ------------------------------------------------------------------------------- 29. OTHER (ATTACH LIST) - ------------------------------------------------------------------------------- 30. TOTAL REORGANIZATION EXPENSES $0 $0 $0 $0 - ------------------------------------------------------------------------------- 31. TOTAL DISBURSEMENTS $0 $0 $0 $0 - ------------------------------------------------------------------------------- 32. NET CASH FLOW $0 $0 $0 $0 - ------------------------------------------------------------------------------- 33. CASH - END OF MONTH $0 $0 $0 $0 - ------------------------------------------------------------------------------- 7 Avado Brands, Inc. February 5 - 22, 2004 Consolidating Cash Flow
Feb. 5-22 Feb. 5-22 Feb. 5-22 Feb. 5-22 ------------------------------------------------------ Don Pablo's Hops Corp. Consolidated ------------------------------------------------------ Cash - Beginning (2/5/04) 4,342,487 ------------------------------------------------------ Receipts: Don Pablo's 10,189,478 - - 10,189,478 Hops - 5,532,158 - 5,532,158 Other - - 23,547 23,547 ------------------------------------------------------ Total Receipts 10,189,478 5,532,158 23,547 15,745,183 ------------------------------------------------------ Operating Disbursements: Payroll, Benefits & Insurance 5,689,749 1,610,694 627,599 7,928,042 GL, Prop & WC Insurance Premiums - - 306,659 306,659 Food & Beverage 1,991,413 1,468,442 - 3,459,855 Utilities, & Property Expenses 72,792 50,732 - 123,524 Rent - - - - Marketing 39,885 1,985 - 41,870 Sales Tax 995,357 624,912 - 1,620,269 Property Tax - - - - Other 371,401 271,828 191,283 834,512 -------------------------------------------------- Total Operating Disbursements: 9,160,597 4,028,593 1,125,541 14,314,731 -------------------------------------------------- Adjusted Total Operating Cash Flow 1,028,881 1,503,565 (1,101,994) 1,430,452 -------------------------------------------------- Other Disbursements Repairs & Maint./Capital Expenditures 6,726 4,600 - 11,326 AlixPartners - - - - -------------------------------------------------- Total Other Disbursements: 6,726 4,600 - 11,326 -------------------------------------------------- Net Operating Cash Flow 1,022,155 1,498,965 (1,101,994) 1,419,126 -------------------------------------------------- Other Non-Operating Disbursements Monthly Interest - - 199,967 199,967 Financing Fees - - 1,050,000 1,050,000 Board of Directors Fees - - 2,000 2,000 KERP/KESP - - - - Utility Deposit - - - - US Trustee - - - - DIP Counsel - - 189,330 189,330 Bankruptcy Professionals - - - - Impact of Bankruptcy on Vendors - - 1,638,128 1,638,128 Debt Payments: - - - - Senior and Sub Note Interest Payments - - - - -------------------------------------------------- Total Other Non-Operating Disbursements - - 3,079,425 3,079,425 ---------------------------------------------------- Total Disbursements 9,167,323 4,033,193 4,204,966 17,405,482 ---------------------------------------------------- Net Cash Flow 1,022,155 1,498,965 (4,181,419) (1,660,299) ---------------------------------------------------- Revolver borrowing (paydown) net of debt payoffs and LOC fundings (514,747) Other (primarily net change in deposits in transit) (882) ------------ Cash - End of Month 2,166,559 ============ DDJ Beginning Loan Balance - Borrowings (1) 22,000,792 Paydowns (1) (6,690,000) Cash Held by AIG I lieu of LC 4,250,000 ------------ DDJ Ending Loan Balance 19,560,792 ------------ DDJ LOC Collateral Advances Beg. Balance - 105% of Wells Fargo LCs (1) 13,949,208 Other Change in LC Collateral Need - ------------ DDJ LOC Collateral Advances Ending Balance 13,949,208 ------------ Total Ending DDJ Borrowings 33,510,000 ============
(1) The DDJ DIP facility was closed on February 11, 2004. Funds from the facility were used, in part, to repay amounts borrowed under the Drawbridge facility and to secure Letters of Credit which secure the Company's insurance programs. 8 CASE NAME: Avado Brands, Inc. Monthly Operating Report CASE NUMBER: 04-31555 ACCRUAL BASIS-4 rwd, 2/04 SCHEDULE MONTH MONTH MONTH ACCOUNTS RECEIVABLE AGING AMOUNT - ------------------------------------------------------------------------------- 1. 0-30 - ------------------------------------------------------------------------------- 2. 31-60 See Attachment - ------------------------------------------------------------------------------- 3. 61-90 - ------------------------------------------------------------------------------- 4. 91+ - ------------------------------------------------------------------------------- 5. TOTAL ACCOUNTS RECEIVABLE $0 $0 $0 $0 - ------------------------------------------------------------------------------- 6. AMOUNT CONSIDERED UNCOLLECTIBLE - ------------------------------------------------------------------------------- 7. ACCOUNTS RECEIVABLE (NET) $0 $0 $0 $0 - ------------------------------------------------------------------------------- AGING OF POSTPETITION TAXES AND PAYABLES MONTH: February 22, 2004 0-30 31-60 61-90 91+ TAXES PAYABLE DAYS DAYS DAYS DAYS TOTAL - ------------------------------------------------------------------------------- 1. FEDERAL $179,775 - ------------------------------------------------------------------------------- 2. STATE $2,681,724 - ------------------------------------------------------------------------------- 3. LOCAL $1,411,927 - ------------------------------------------------------------------------------- 4. OTHER (ATTACH LIST) - ------------------------------------------------------------------------------- 5. TOTAL TAXES PAYABLE $4,273,426 $0 $0 $0 $0 - ------------------------------------------------------------------------------- - ------------------------------------------------------------------------------- 6. ACCOUNTS PAYABLE $3,459,002 $8,979 $2,459 $9,899 $3,480,339 - ------------------------------------------------------------------------------- *** *** *** STATUS OF POSTPETITION TAXES MONTH: February 22, 2004 BEGINNING AMOUNT ENDING TAX WITHHELD AND/ AMOUNT TAX FEDERAL LIABILITY* 0R ACCRUED PAID LIABILITY - ------------------------------------------------------------------------------- 1. WITHHOLDING** $0 $922,517 $922,517 $0 - ------------------------------------------------------------------------------- 2. FICA-EMPLOYEE** $0 $172,982 $172,982 $0 - ------------------------------------------------------------------------------- 3. FICA-EMPLOYER** $0 $172,982 $172,982 $0 - ------------------------------------------------------------------------------- 4. UNEMPLOYMENT $0 $179,775 $0 $179,775 - ------------------------------------------------------------------------------- 5. INCOME - ------------------------------------------------------------------------------- 6. OTHER (ATTACH LIST) - ------------------------------------------------------------------------------- 7. TOTAL FEDERAL TAXES $0 $1,448,256 $1,268,481 $179,775 - ------------------------------------------------------------------------------- STATE AND LOCAL - ------------------------------------------------------------------------------- 8. WITHHOLDING $0 $321,891 $181,150 $140,741 - ------------------------------------------------------------------------------- 9. SALES $0 $3,586,353 $1,343,034 $2,243,319 - ------------------------------------------------------------------------------- 10. EXCISE - ------------------------------------------------------------------------------- 11. UNEMPLOYMENT $0 $297,664 $0 $297,664 - ------------------------------------------------------------------------------- 12. REAL AND PERSONAL PROPERTY $0 $1,483,036 $71,109 $1,411,927 - ------------------------------------------------------------------------------- 13. PERSONAL PROPERTY - ------------------------------------------------------------------------------- 14. OTHER (ATTACH LIST) - ------------------------------------------------------------------------------- 15. TOTAL STATE & LOCAL $0 $5,688,944 $1,595,293 $4,093,651 - ------------------------------------------------------------------------------- 16. TOTAL TAXES $0 $7,137,200 $2,863,774 $4,273,426 - ------------------------------------------------------------------------------- * The beginning tax liability should represent the liability from the prior month or, if this is the first operating report, the amount should be zero. ** Attach photocopies of IRS Form 6123 or your FTD coupon and payment receipt to verify payment or deposit. *** These amounts are being investigated and may not be owed or are subject to compromise. Note: Payroll taxes are remitted based on Federal, state and local requirements. Remittances are made within one day of paydate, monthly or quarterly, depending on the requirements. 9 AVADO BRANDS, INC. BALANCE SHEET BREAKDOWN $ in '000's
Increase Increase Increase (Decrease) (Decrease) (Decrease) 12/29/02 12/28/03 01/25/04 02/22/04 vs. 01/25/04 vs. 12/29/02 vs. 12/28/03 - ----------------------------------------------------------------------------------------------------------------------------------- Accounts Receivable: A/R (net) 686 301 392 508 (1) 116 (178) 207 M&S Receivable 54 - - - - (54) - Allowance for Uncollectible - M&S - - - - - - - Credit cards 3,184 2,625 3,513 3,267 (2) (246) 83 642 From joint venture - - - - - - - Employee/Partner Loans 270 8 8 8 - (262) - Interest receivable - current 894 863 986 1,026 40 132 163 Other (1) 2 1 2 1 3 - - ----------------------------------------------------------------------------------------------------------------------------------- Totals 5,087 3,799 4,900 4,811 (89) (276) 1,012 ===================================================================================================================================
(1) Related primarily to $226k State of Texas SUTA payments to be refunded and $224k rebates to be received from vendors (2) Credit Cards terms: MC/Visa/Diners-Next Day, AMEX-3 Business Days, Discover-5 Business Days 10 AVADO BRANDS, INC. A/P SUMMARY - All Companies Post-Petition As of February 22, 2004 Aging Balance ---------------------------------------------------- Company Open Current 31-45 46-60 61-90 Over 90 - ------------------------------------------------------------------------------- 00007 284,653.14 277,004 1,827 341 3,365 2,115 00012 44.75 45 - - - - 00050 1,072,867.11 1,061,744 380 2,179 (67) 8,632 00051 43,766.18 43,766 - - - - 00202 1,477,784.78 1,476,872 902 1,676 (839) (827) 00703 7,922.42 6,270 (18) 1,691 - (21) - ------------------------------------------------------------------------------- Totals 2,887,038.38 2,865,702 3,092 * 5,887 * 2,459 * 9,899 * =============================================================================== * These amounts are being investigated. At this point we do not believe them to be owed. 11 Monthly Operating Report CASE NAME: Avado Brands, Inc. ACCRUAL BASIS-5 CASE NUMBER: 04-31555 rwd, 2/04 The debtor in possession must complete the reconciliation below for each bank account, including all general, payroll and tax accounts, as well as all savings and investment accounts, money market accounts, certificates of deposit, government obligations, etc. Accounts with restricted funds should be identified by placing an asterisk next to the account number. Attach additional sheets if necessary. See Attached Schedule MONTH: ------------------------------ BANK RECONCILIATIONS Account #1 Account #2 Account #3 TOTAL - ------------------------------------------------------------------------------- A. BANK: - ------------------------------------------------------------------------------- B. ACCOUNT NUMBER: - ------------------------------------------------------------------------------- C. PURPOSE (TYPE): - ------------------------------------------------------------------------------- 1. BALANCE PER BANK STATEMENT - ------------------------------------------------------------------------------- 2. ADD:TOTAL DEPOSITS NOT CREDITED - ------------------------------------------------------------------------------- 3. SUBTRACT: OUTSTANDING CHECKS - ------------------------------------------------------------------------------- 4. OTHER RECONCILING ITEMS - ------------------------------------------------------------------------------- 5. MONTH END BALANCE PER BOOKS $0 $0 $0 $0 - ------------------------------------------------------------------------------- 6. NUMBER OF LAST CHECK WRITTEN - ------------------------------------------------------------------------------- INVESTMENT ACCOUNTS - ------------------------------------------------------------------------------- DATE OF TYPE OF PURCHASE CURRENT BANK, ACCOUNT NAME & NUMBER PURCHASE INSTRUMENT PRICE VALUE - ------------------------------------------------------------------------------- 7. - ------------------------------------------------------------------------------- 8. - ------------------------------------------------------------------------------- 9. - ------------------------------------------------------------------------------- 10. - ------------------------------------------------------------------------------- 11. TOTAL INVESTMENTS $0 $0 - ------------------------------------------------------------------------------- CASH - ------------------------------------------------------------------------------- 12. CURRENCY ON HAND $0 - ------------------------------------------------------------------------------- 13. TOTAL CASH - END OF MONTH $0 - ------------------------------------------------------------------------------- Note: All bank accounts are reconciled each month with no more than a one-month lag. 12 Avado Brands, Inc, Cash Analysis as of February 22, 2004
Funds Transfer G/L Bank G/L Acct # JDE Name Method # Balance Balance - ------------------------------------------------------------------------------------------------ Don Pablo's 50.1049.01 RBC/Provident/DP ZBA - - 50.1052.01 RBC DP Tax Settlement ZBA - - 50.1100.0101 Bank of America (AST) AST 18 162,559.69 28,261.03 50.1100.0102 Bank One (AST) AST 18 258,122.64 41,921.06 50.1100.0103 Fifth Third Bank (AST) AST 16 166,857.81 25,795.70 50.1100.0104 First Union AST 13 147,400.00 22,612.47 50.1100.0105 M&T Sweep 4 52,434.33 14,225.35 50.1100.0106 PNC Sweep/Internet 6 74,522.43 18,396.76 50.1100.0107 Wachovia Sweep/Internet 7 78,807.38 22,121.55 50.1100.0108 Wells Fargo (AST) AST 10 136,728.73 18,973.35 50.1100.0109 Wells Fargo Sweep 3 8,399.53 11,132.54 50.1100.0111 First Tennessee Sweep 2 21,942.42 6,679.10 50.1100.5042 Wells Fargo Sweep 1 10,707.92 3,716.75 50.1100.5048 National City Sweep 1 17,874.32 5,774.52 50.1100.5050 National City Sweep 1 12,653.50 5,848.18 50.1100.5051 Star Bank, NA Sweep 1 18,056.29 4,772.22 50.1100.5079 National City Sweep 1 21,113.95 3,687.48 50.1100.5087 First America Bank Sweep 1 13,531.44 5,247.59 50.1100.5103 Citibank Sweep 1 28,939.46 20,619.15 50.1100.5112 Dime Bank Sweep 597.23 583.23 50.1100.5115 First Star Sweep 1 15,802.26 4,988.76 50.1100.5120 National City Sweep 1 16,126.26 4,541.54 ------------------------------------ 1,263,177.59 269,898.33 5999.1102.013 RBC/Provident- ZBA A/P ZBA (732,569.50) 217,660.07 5999.1104.03 RBC/Provident BWL ACCOUN ZBA (85,514.02) - 5999.1104.04 RBC/Provident BWL Finte ZBA (10,570.09) - 50.1104.5026 Bank One - Club A/C ZBA 6,968.64 3,146.70 50.1104.5042 Bank America - Club A/C ZBA 7,550.13 3,756.04 50.1104.5047 Wells Fargo - Club A/C ZBA 1,783.00 1,783.00 ------------------------------------ 106 450,825.75 496,244.14 Hops 202.1049.01 RBC--Hops Grill ZBA - - 202.1100.0101 Bank of America Dep Sweep 1 (19,232.16) 3,357.34 202.1100.0102 Bank One-CO Deposit Sweep/Actual 5 31,428.58 9,477.15 202.1100.0103 Fifth Third Deposit Sweep 2 13,300.34 22,311.07 202.1100.0104 First Union Deposit AST 47 451,689.97 81,132.25 202.1100.0108 Wells Fargo Deposit Sweep 2 67,574.78 42,413.18 202.1100.0112 Amsouth/MS Depository Sweep 1 14,127.81 5,490.81 202.1100.0115 FirStar-KC Depository Sweep/Actual 2 15,204.34 4,816.10 202.1100.0118 Fleet-KC Depository Sweep/Actual 3 58,973.55 19,287.69 202.1102.03 RBC/Provident Hops ZBA ZBA 21,393.16 389.00 202.1104.02 RBC/Provident Hops BWL ZBA (6,416.07) - ------------------------------------ 63 648,044.30 188,674.59 Corporate 007.1025.01 Avado Brands Master 1,460,400.43 1,505,103.16 Held Checks - N/A Entry Booked for Cash Adj. 1,057,644.00 N/A ------------------------------------ Avado Brands Master After Adj. 2,518,044.43 1,505,103.16 007.1049 ACH Wire Transfers 0.60 - 007.1049.01 Provident/Avado Corp 1.13 - 007.1050 Foothill/Avado Master 552,221.13 - 007.1052 Suntrust Tax Payment 25,384.81 28,327.48 007.1052.01 RBC/Provident Tax Settlement (0.03) - 007.1100.SUN Suntrust - Depository 29,170.90 20,489.73 007.1101.050 RBC/Provident- ZBA DP P/R (1,812,838.69) - 007.1101.070 RBC/Provident Avado Corp. P/R 94,316.45 - 007.1101.090 RBC/Provident Hops P/R (311,685.46) - 007.1101.120 RBC/Provident Canyon P/R (16,730.66) - 007.1102.07 RBC/Provident Avado Corp. A/P (206,786.65) 478.63 007.1125.01 Provident Health - - ------------------------------------ 871,097.96 1,554,399.00 Canyon Cafe 012.1104.01 Provident BWL (692.42) - 012.1102.01 Provident A/P (2,173.33) - 012.1100.1200 Bank One SMAS 3,473.54 8,396.03 ------------------------------------ 607.79 8,396.03 ------------------------------------ Total Cash Avado Brands 1,970,575.80 2,247,713.76 ==================================== Petty Cash 195,983.00 ------------------- Total Consolidated Cash 2,166,558.80 Per Balance Sheet 2,166,559.00 ------------------- Unlocated Difference (0.20)
Note: It is Company policy to reconcile all cash accounts accurately and timely, with no more than one month lag. 13 Monthly Operating Report CASE NAME: Avado Brands, Inc. ACCRUAL BASIS - 6 CASE NUMBER: 04-31555 rwd, 2/04 MONTH: ------------------------- PAYMENTS TO INSIDERS AND PROFESSIONALS OF THE TOTAL DISBURSEMENTS SHOWN FOR THE MONTH, LIST THE AMOUNT PAID TO INSIDERS (AS DEFINED IN SECTION 101 (31) (A)-(F) OF THE U.S. BANKRUPTCY CODE) AND TO PROFESSIONALS. ALSO, FOR PAYMENTS TO INSIDERS, IDENTIFY THE TYPE OF COMPENSATION PAID (e.g. SALARY, BONUS, COMMISSIONS, INSURANCE, HOUSING ALLOWANCE, TRAVEL, CAR ALLOWANCE, ETC.). ATTACH ADDITIONAL SHEETS IF NECESSARY. INSIDERS - ------------------------------------------------------------------------------- TYPE OF AMOUNT TOTAL PAID NAME PAYMENT PAID TO DATE - ------------------------------------------------------------------------------- 1. See Attachment - ------------------------------------------------------------------------------- 2. - ------------------------------------------------------------------------------- 3. - ------------------------------------------------------------------------------- 4. - ------------------------------------------------------------------------------- 5. - ------------------------------------------------------------------------------- 6. TOTAL PAYMENTS TO INSIDERS $0 $0 - ------------------------------------------------------------------------------- PROFESSIONALS - ------------------------------------------------------------------------------- DATE OF COURT TOTAL TOTAL ORDER AUTHORIZING AMOUNT AMOUNT PAID INCURRED NAME PAYMENT APPROVED PAID TO DATE & UNPAID * - ------------------------------------------------------------------------------- 1. Skadden, Arps $0 $0 - ------------------------------------------------------------------------------- 2. Cox & Smith $0 $0 - ------------------------------------------------------------------------------- 3. Miller, Buckfire $0 $0 - ------------------------------------------------------------------------------- 4. Bankruptcy Services $0 $0 - ------------------------------------------------------------------------------- 5. Other $0 $0 - ------------------------------------------------------------------------------- 6. TOTAL PAYMENTS TO PROFESSIONALS $0 $0 $0 $0 - ------------------------------------------------------------------------------- * INCLUDE ALL FEES INCURRED, BOTH APPROVED AND UNAPPROVED POSTPETITION STATUS OF SECURED NOTES, LEASES PAYABLE AND ADEQUATE PROTECTION PAYMENTS SCHEDULED AMOUNTS MONTHLY PAID TOTAL PAYMENTS DURING UNPAID NAME OF CREDITOR DUE MONTH POSTPETITION - ------------------------------------------------------------------------------- 1. DDJ DIP revolver n/a $33,510,000 - ------------------------------------------------------------------------------- 2. Leases $0 - ------------------------------------------------------------------------------- 3. Adequate Protection Payments n/a $0 - ------------------------------------------------------------------------------- 4. - ------------------------------------------------------------------------------- 5. - ------------------------------------------------------------------------------- 6. TOTAL $0 $0 $33,510,000 - ------------------------------------------------------------------------------- 14 Avado Brands, Inc. Payments made to insiders for the period ending February 22, 2004
Non-Qualified Name Wages Bonsues 401K Payout Severance Vacation Expenses Other Total - ------------------------------------------------------------------------------------------------------------------ Emilio Alvarez-Recio - - - - - - 500 500 Jerome Atkinson - - - - - - 500 500 William Lapham - - - - - - 500 500 Robert Sroka - - - - - - 500 500 - ------------------------------------------------------------------------------------------------------------------ Subtotal BOD - - - - - - 2,000 2,000 - ------------------------------------------------------------------------------------------------------------------ Robert Andreottola 18,769 - - - - - - 18,769 Mitchell Blocher 7,692 - - - - - - 7,692 Dannie Durham - - - - - - - - Don Garrison 3,709 1,250 - - - 3,208 - 8,167 Greg Graber 11,923 - - - - 4,381 - 16,304 Gary Grimes 12,308 - - - - 5,486 431 18,225 Timothy Ligon 9,230 - - - - 715 - 9,945 Louis Profumo 23,077 - - - - 1,798 - 24,875 Brett Shone 7,577 - - - - 2,998 - 10,575 Percy Williams 9,692 - - - - 245 145 10,082 - ------------------------------------------------------------------------------------------------------------------ Subtotal Officers 103,977 1,250 - - - 18,831 576 124,634 - ------------------------------------------------------------------------------------------------------------------ Alix Partners - - - - - - - - - ------------------------------------------------------------------------------------------------------------------ Total Payments 103,977 1,250 - - - 18,831 2,576 126,634 ==================================================================================================================
15 Monthly Operating Reports CASE NAME: Avado Brands, Inc. ACCRUAL BASIS - 7 CASE NUMBER: 04-31555 rwd, 2/04 MONTH: February 2004 QUESTIONNAIRE YES NO - ------------------------------------------------------------------------------- 1. HAVE ANY ASSETS BEEN SOLD OR TRANSFERRED OUTSIDE THE NORMAL COURSE OF BUSINESS THIS REPORTING PERIOD? X - ------------------------------------------------------------------------------- 2. HAVE ANY FUNDS BEEN DISBURSED FROM ANY ACCOUNT OTHER THAN A DEBTOR IN POSSESSION ACCOUNT? X - ------------------------------------------------------------------------------- 3. ARE ANY POSTPETITION RECEIVABLES (ACCOUNTS, NOTES, OR LOANS) DUE FROM RELATED PARTIES? X - ------------------------------------------------------------------------------- 4. HAVE ANY PAYMENTS BEEN MADE ON PREPETITION LIABILITIES THIS REPORTING PERIOD? X - ------------------------------------------------------------------------------- 5. HAVE ANY POSTPETITION LOANS BEEN RECEIVED BY THE DEBTOR FROM ANY PARTY? X - ------------------------------------------------------------------------------- 6. ARE ANY POSTPETITION PAYROLL TAXES PAST DUE? X - ------------------------------------------------------------------------------- 7. ARE ANY POSTPETITION STATE OR FEDERAL INCOME TAXES PAST DUE? X - ------------------------------------------------------------------------------- 8. ARE ANY POSTPETITION REAL ESTATE TAXES PAST DUE? X - ------------------------------------------------------------------------------- 9. ARE ANY OTHER POSTPETITION TAXES PAST DUE? X - ------------------------------------------------------------------------------- 10. ARE ANY AMOUNTS OWED TO POSTPETITION CREDITORS DELINQUENT? X - ------------------------------------------------------------------------------- 11. HAVE ANY PREPETITION TAXES BEEN PAID DURING THE REPORTING PERIOD? X - ------------------------------------------------------------------------------- 12. ARE ANY WAGE PAYMENTS PAST DUE? X - ------------------------------------------------------------------------------- IF THE ANSWER TO ANY OF THE ABOVE QUESTIONS IS "YES," PROVIDE A DETAILED EXPLANATION OF EACH ITEM. ATTACH ADDITIONAL SHEETS IF NECESSARY. INSURANCE YES NO - ------------------------------------------------------------------------------- 1. ARE WORKER'S COMPENSATION, GENERAL LIABILITY AND OTHER NECESSARY INSURANCE COVERAGES IN EFFECT? X - ------------------------------------------------------------------------------- 2. ARE ALL PREMIUM PAYMENTS PAID CURRENT? X - ------------------------------------------------------------------------------- 3. PLEASE ITEMIZE POLICIES BELOW. - ------------------------------------------------------------------------------- IF THE ANSWER TO ANY OF THE ABOVE QUESTIONS IS "NO," OR IF ANY POLICIES HAVE BEEN CANCELLED OR NOT RENEWED DURING THIS REPORTING PERIOD, PROVIDE AN EXPLANATION BELOW. ATTACH ADDITIONAL SHEETS IF NECESSARY. INSTALLMENT PAYMENTS - ------------------------------------------------------------------------------- TYPE OF PAYMENT AMOUNT POLICY CARRIER PERIOD COVERED & FREQUENCY - ------------------------------------------------------------------------------- - ------------------------------------------------------------------------------- See Attachments - ------------------------------------------------------------------------------- - ------------------------------------------------------------------------------- - ------------------------------------------------------------------------------- Explanation of "Yes" Answers: We have paid certain pre-petition expenses after receiving Court approval. This mainly includes insurance, worker's comp claims, waste service providers, BWL expenses, payroll and payroll-related taxes. 16 Policy Register AVADO BRANDS, INC.
Line of Coverage Insurer Term Premium Limits Deductible/SIR - ----------------------------------------------------------------------------------------------------------------------------------- Property Allianz 2/16/04 $502,523 $50,000,000 Total Loss Limit $ 250,000 Insurance Co. 2/16/05 $ 100,000 $20,000,000 Earthquake/Earth Movement (Esxcludes CA) $ 250,000 $20,000,000 Flood, Except $ 2,500,000 Flood 100 Yr Flood Zone - Aggregate $ 500,000 $25,000,000 Domestic Terroism $ 2,500,000 Newly Acquired Property (90 days) $ 5,000,000 Builders Risk $ 25,000 $ 5,000,000 Ordinance or Law Coverage $ 1,330,000 Fine Arts $ 50,000 Trees, Shrubs, Plants, and Lawns ----------------------------------------------------------------------------------------------------------------------------------- Boiler & Allianz 2/16/04 Incl. in $15,000,000 Property Damage, Business Income Extra Expense $ 10,000 Machinery Insurance Co. 2/16/05 property $ 1,000,000 Off Premises Service Interruption (Gas, Steam, Electricity, Water, A/C, Telephone) $ 500,000 Consequential Damage Spoilage $ 5,000 $ 100,000 Expediting Expense $ 5,000 $ 500,000 Ammonia Contamination $ 100,000 Water Damage $ 100,000 Hazardous Substances - ------------------------------------------------------------------------------------------------------------------------------------ Automobile American Home 2/16/04 $ 5,000 $ 1,000,000 Combined Single Limit Each Occurence - Symbol 8 $ 1,500 Liability Assurance 2/16/05 $ 5,000 Auto Medical Payments - Symbol 2 $ 50,000 Hired Car Physical Damage Minimum Statutory Personal Injury Protection - ------------------------------------------------------------------------------------------------------------------------------------ General American Home 2/16/04 $210,000 $10,000,000 General Aggregate Limit $ 500,000 Liability Assurance 2/16/05 $ 2,000,000 Products/Completed Operations Aggr. Limit Company $ 1,000,000 Personal & Advertising Injury Limit $ 1,000,000 Combined Single Limit Each Occurrence $ 1,000,000 Fire Damage Limit, Any One Fire $ 5,000 Medical Expense $ 1,000,000 Employee Benefits Per Coaim/Aggregate $ 1,000 $ 1,000,000 Liquor Liability Each Common Clause Limit - ------------------------------------------------------------------------------------------------------------------------------------ Workers' American Home 2/16/04 $688,936 Statutory Coverage A-Workers Comp. $ 500,000 Compensation Assurance 2/16/05 Coverage B-Workers Comp. Company $ 1,000,000 Each Accident $ 1,000,000 Each Employee/Disease $ 1,000,000 Policy Limit/Disease - ------------------------------------------------------------------------------------------------------------------------------------ Foreign Insurance Co 2/16/04 $ 2,500 General Libility Liability of the State 2/16/05 $ 1,000,000 Each Occurence of Pennsylvania Excluded Products/Completed Operations Aggregate $ 1,000,000 General Aggregate $ 1,000,000 Personal & Advertising Injury Limit $ 10,000 Medical Expense Limit $ 50,000 Damages to Premises Rented to you Limit Contingent Automobile Liability $ 1,000,000 Combined Single Limit Travel Acidental Death and Dismemberment $ 10,000 Death Benefit Per Person $ 100,000 Death Aggregat limit of indemnity Accidental Sickness and Medical $ 5,000 Medical Expense Per Occurence $ 250 $ 25,000 Repatriation of Mortal Remains Per Occurence $ 100,000 Medical Evacuation Expense Per Occurence - ------------------------------------------------------------------------------------------------------------------------------------ Umbrella American 2/16/04 $100,091 $40,000,000 Per Occurence $ 10,000 Liability International 2/16/05 $40,000,000 Products/Completed Operations Aggregate South Insurance $40,000,000 General Aggregate Company - ------------------------------------------------------------------------------------------------------------------------------------ Fiduciary Federal 8/01/03 $ 9,828 $ 2,000,000 Each Loss $ 50,000 Liability Insurance 8/01/04 $ 2,000,000 Each Policy Period $ 100,000 Company - ------------------------------------------------------------------------------------------------------------------------------------ Directors & American 8/01/03 $485,000 $10,000,000 Each Loss, Each Director/Officer $ 500,000 Officers International 8/01/04 $ 50,000 Crisis Fund $ 250,000 South Insurance Company - ------------------------------------------------------------------------------------------------------------------------------------ Excess Directors Federal 8/01/02 $210,975 $5,000,000 Excess of $10,000,000 & Officers Insurance Co. 8/01/04 - ------------------------------------------------------------------------------------------------------------------------------------ Excess Directors Speciality 8/1/03 $196,000 $5,000,000 Excess of $15,000,000 & Officers Insurance Co. 8/01/04 - ------------------------------------------------------------------------------------------------------------------------------------ Crime Federal 8/01/03 $ 51,070 $5,000,000 Employee Theft $ 200,000 Insurance 8/01/04 $5,000,000 Premises Coverage Company $5,000,000 Transit Coverage $5,000,000 Depositor's Forgery $5,000,000 Computer Funds Transfer Fraud $5,000,000 Money Order & Counterfeit Fraud Coverage $5,000,000 Credit Card Fraud Coverage - ------------------------------------------------------------------------------------------------------------------------------------ Special Crime Federal 8/01/03 $ 5,000 $5,000,000 Kidnap/Ransom and Extortion $ 0 Insurance 8/01/04 $5,000,000 Custody Coverage Company $5,000,000 Expense Coverage $ 250,000 Sublimit for Recall Expenses $ 50,000 Sublimit for Rest and Rehabilitation Expenses $ 250,000 Accidental Loss Coverage - Loss of Life Benefit $ 500,000 Accidental Loss Coverage - Event Benefit Amount 25% Mutilation (% of Loss of Life Benefit) 50% Accidental Loss other than Mutilation/Loss of Life $ 250,000 Legal Liability Costs Coverage - ------------------------------------------------------------------------------------------------------------------------------------ Employment National Union 8/01/03 $170,000 $5,000,000 Aggregate $1,000,000 Practices Fire Insurance 8/01/04 Liability Company of Pittsburgh, PA - ------------------------------------------------------------------------------------------------------------------------------------
17 Commercial Premium Finance Agreement AFCO PREMIUM CREDIT LLC A Joint Venture of AFCO Credit Corporation and Marsh USA Inc. 2951 FLOWERS ROAD SOUTH, SUITE #132, ATLANTA, GA 30341 TEL. NOS. (770) 455-4850 (800) 288-5410 - ------------------------------------------------------------------------------- Agent (Name and Address) Insured (Name and Address as shown on the policy) MARSH USA INC AVADO BRANDS, INC. Attn: ERIN MAURER Attn: MR. TIM LIGON 3475 PIEDMONT ROAD STE 1200 HANCOCK AT WASHINGTON ATLANTA, GA 30305 MADISON, GA 30650 (404) 760-0112 (706) 342-4552 A) Total Premiums B) Down Payment C) Amount Financed D) Finance Charge E) Total Payments - --------------------------- ----------------------- -------------------------- -------------------------- ------------------------- 1,509,050.00 528,168.00 980,882.00 12,298.79 993,180.79 - --------------------------- ----------------------- -------------------------- -------------------------- ------------------------- F) Annual Percentage Rate No. of Payments Amount of Payments First Installment Due Installment Due Dates - --------------------------- ----------------------- -------------------------- -------------------------- ------------------------- 3.750% 7 (Monthly) 141,882.97 03/16/2004 16th - --------------------------- ----------------------- -------------------------- -------------------------- -------------------------
SCHEDULE OF POLICIES - --------------------------------------------------------------------------------------------------------------------- Effective Date Name of Insurance Company and Name and Address of Type of Months Premium $ of Policy/Inst. General or Policy Issuing Agent or Intermediary Coverage Covered - --------------------------------------------------------------------------------------------------------------------- 02/16/2004 ALLIANZ INS CO PROP 12 502,122.00 TAX Ref 401.00 02/16/2004 AMERICAN HOME ASSUR CO XSLB 12 210,000.00 02/16/2004 AMERICAN HOME ASSUR CO WC 12 688,936.00 02/16/2004 INSURANCE CO OF THE STATE OF PA FRLB 12 2,500.00 02/16/2004 AMERICAN INT'L SOUTH INS CO UMB 12 100,091.00 02/16/2004 AMERICAN HOME ASSUR CO AUTO 12 5,000.00 ($2,500.00 TME) - ---------------------------------------------------------------------------------------------------------------------
(1) DEFINITIONS: The above named insured ("the insured") is the debtor. AFCO Premium Credit LLC ("AFCO"), a joint venture of AFCO Credit Corporation and Marsh USA Inc., is the lender to whom the debt is owed. "Insurance company" or "company", "insurance policy" or "policy" and "premium" refer to those items listed under the "Schedule of Policies". Singular words mean plural and vice-versa as may be required in order to give the agreement meaning. For New York insureds, services for which any charge pursuant to Insurance Law, Section 2119, is imposed, are in connection with obtaining and servicing the policies listed herein. NOTICE: 1. Do not sign this agreement before you read it or if it contains any blank space. 2. You are entitled to a completely filled in copy of this agreement. 3. Under the law, you have the right to pay off in advance the full amount due and under certain conditions to obtain a partial refund of the service charge. INSURED AGREES TO THE TERMS SET FORTH ABOVE AND ON THE LAST PAGEOF THIS AGREEMENT _________________ X___________________________ _____________ ____________ INSURED'S NAME SIGNATURE OF INSURED OR TITLE DATE AUTHORIZED REPRESENTATIVE 18 AGENT OR BROKER REPRESENTATIONS The undersigned warrants and agrees: 1. The policies are in full force and effect and the information in the Schedule of Policies and the premiums are correct. 2. The insured has authorized this transaction and recognizes the security interest assigned herein and has received a copy of this agreement. 3. To hold in trust for AFCO any payments made or credited to the insured through or to the undersigned, directly or indirectly, actually or constructively by the insurance companies or AFCO and to pay the monies as well as any unearned commissions to AFCO upon demand to satisfy the outstanding indebtedness of the insured. Any lien the undersigned has or may acquire in the return premiums arising out of the listed insurance policies is subordinated to AFCO's lien or security interest therein. 4. The policies comply with AFCO's eligibility requirements. 5. No audit or reporting form policies, policies subject to retrospective rating or minimum earned premium are included. The deposit or provisional premiums are not less than anticipated premiums to be earned for the full term of the policies. 6. The policies can be cancelled by the insured and the unearned premiums will be computed on the standard short-rate or pro-rata table. 7. The undersigned represents that a proceeding in bankruptcy, receivership, or insolvency has not been instituted by or against the named insured. IF THERE ARE ANY EXCEPTIONS TOTHE ABOVE STATEMENTS PLEASE LIST BELOW: THE UNDERSIGNED FURTHER WARRANTS THAT IT HAS RECEIVED THE DOWN PAYMENT AND ANY OTHER SUMS DUE AS REQUIRED BY THE AGREEMENT AND IS HOLDING SAME OR THEY ARE ATTACHED TO THIS AGREEMENT ___________________ X_____________________________ ___________ _________ AGENT OR BROKER SIGNATURE OF AGENT OR BROKER TITLE DATE (2) ASSIGNMENT OF AGREEMENT: This agreement will be assigned and transferred to and serviced by AFCO Credit Corporation. (3) LIMITED POWER OF ATTORNEY: The insured irrevocably appoints AFCO as its attorney in fact with full authority to cancel the insurance policies for the reasons stated in paragraph (15), and to receive all sums assigned to AFCO or in which it has granted AFCO a security interest. AFCO may execute and deliver on the insured's behalf all documents, instruments of payment, forms, and notices of any kind relating to the insurance policies in furtherance of this agreement. (4) PROMISE OF PAYMENT: The insured requests that AFCO pay the premiums in the Schedule of Policies. The insured promises to pay to AFCO the amount stated in Block E above according to the payment schedule, subject to the remaining terms of this agreement. (5) SECURITY INTEREST: The insured assigns to AFCO as security for the total amount payable in this agreement and all unearned premiums and dividends which may become payable under the insurance policies for whatever reason and loss payments which reduce the unearned premiums subject to any mortgagee or loss payee interests. The insured gives to AFCO a security interest in all items mentioned in this paragraph. The insured further grants to AFCO its interest which may arise under any state insurance guarantee fund relating to any policy shown in the Schedule of Policies. 19 (6) WARRANTY OF ACCURACY: The insured warrants to AFCO that the insurance policies listed in the Schedule have been issued to the insured and are in full force and effect and that the insured has not assigned any interest in the policies except for the interest of mortgagees and loss payees. The insured authorizes AFCO to insert or correct on this agreement, if omitted or incorrect, the insurer's name, the policy numbers, and the due date of the first installment. AFCO is permitted to correct any obvious errors. In the event of any change or insertion, AFCO will give the insured written notice of those changes or corrections made in accordance with this provision. (7) REPRESENTATION OF SOLVENCY: The insured represents that the insured is not insolvent or presently the subject of any insolvency proceedings. (8) ADDITIONAL PREMIUMS: The money paid by AFCO is only for the premium as determined at the time the insurance policy is issued. The insured agrees to pay the company any additional premiums which become due for any reason. AFCO may assign the company any rights it has against the insured for premiums due the company in excess of the premiums returned to AFCO. (9) SPECIAL INSURANCE POLICIES: If the insurance policy issued to the insured is auditable or is a reporting form policy or is subject to retrospective rating, then the insured promises to pay to the insurance company the earned premium computed in accordance with the policy provisions which is in excess of the amount of premium advanced by AFCO which is in excess of the amount of premium advanced by AFCO which the insurance company retains. (10) NAMED INSURED: If the insurance policy provides that the first named insured in the policy shall be responsible for payment of premiums and shall act on behalf of all other insureds with respect to any actions relating to the policy, then the same shall apply to this agreement. If such is not the case, then all insureds' names must be shown on this agreement unless a separate agreement specifies one insured to act in all matters for the others. (11) FINANCE CHARGE: The finance charge shown in block D begins to accrue as of the earliest policy effective date unless otherwise indicated in the Schedule of Policies. (12) AGREEMENT BECOMES A CONTRACT: This agreement becomes a binding contract when AFCO mails a written acceptance to the insured. (13) DEFAULT CHARGES: If the insured is late in making an installment payment to AFCO by more than the number of days specified by law the insured will pay to AFCO a delinquency charge not to exceed the maximum charge permitted by law. (14) DISHONORED CHECK: If an insured's check is dishonored for any reason and if permitted by law, the insured will pay to AFCO a fee for expenses in processing that check not to exceed the amount permitted by law. (15) CANCELLATION: AFCO may cancel the insurance policies after giving any required statutory notice and the unpaid balance due to AFCO shall be immediately payable by the insured if the insured does not pay any installment according to the terms of this agreement. AFCO at its option may enforce payment of this debt without recourse to the security given to AFCO. If cancellation occurs, the borrower agrees to pay a finance charge on the balance due at the contract rate of interest until that balance is paid in full or until such other date as required by law. 20 (16) CANCELLATION CHARGES: If AFCO cancels any insurance policy in accordance with the terms of this agreement, then the insured will pay AFCO a cancellation charge, if permitted, up to the limit specified by law. (17) MONEY RECEIVED AFTER NOTICE OF CANCELLATION: Any payments made to AFCO after AFCO's notice of cancellation of the insurance policy has been mailed may be credited to the insured's account without affecting the acceleration of this agreement and without any liability or obligation on AFCO's part to request reinstatement of a cancelled insurance policy. Any money AFCO receives from an insurance company shall be credited to the amount due AFCO with any surplus being paid over to whomever is entitled to the money. No refund of less than $1.00 shall be made. In the event that AFCO does request, on the insured's behalf, a reinstatement of the policy, such request does not guarantee that coverage under the policy will be reinstated or continued. (18) ATTORNEY FEES - COLLECTION EXPENSE: If, for collection, this agreement is placed in the hands of an attorney who is not a salaried employee of AFCO, then the insured agrees to pay reasonable attorney fees and costs including those in the course of appeal as well as other expenses, as permitted by law or granted by the court. (19) REFUND CREDITS: The insured will receive a refund credit of the finance charge if the account is voluntarily prepaid in full prior to the last installment due date as required or permitted by law. Any minimum or fully earned fees will be deducted as permitted by law. (20) INSURANCE AGENT OR BROKER: The insurance agent or broker named in this agreement is the insured's agent, not AFCO's, and AFCO is not legally bound by anything the agent or broker represents to the insured orally or in writing. (21) NOT A CONDITION OF OBTAINING INSURANCE: This agreement is not required as a condition of the insured obtaining insurance coverage. (22) SUCCESSORS AND ASSIGNS: All legal rights given to AFCO shall benefit AFCO's successors and assigns. The insured will not assign the policies without AFCO's written consent except for the interest of mortgagees and loss payees. (23) LIMITATION OF LIABILITY: The insured agrees that AFCO's liability for breach of any of the terms of this agreement or the wrongful exercise of any of its powers shall be limited to the amount of the principal balance outstanding except in the event of gross negligence or willful misconduct. (24) ENTIRE DOCUMENT - GOVERNING LAW: This document is the entire agreement between AFCO and the insured and can only be changed in writing and signed by both parties except as stated in paragraph (6). The laws of the state indicated in the insured's address as set forth in the Schedule will govern this agreement unless stated in that Schedule. 21 -----END PRIVACY-ENHANCED MESSAGE-----