EX-99 2 morjan.txt EXHIBIT 99.1 - JANUARY MOR EXHIBIT 99.1 Monthly Operating Report CASE NAME: Avado Brands, Inc. ACCRUAL BASIS CASE NUMBER: 04-31555 rwd, 01/05 JUDGE: Felsenthal UNITED STATES BANKRUPTCY COURT NORTHERN DISTRICT OF TEXAS DIVISION 6 MONTHLY OPERATING REPORT MONTH ENDING: January 30, 2005 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 February 23, 2005 ------------------------------------------- -------------------- PRINTED NAME OF RESPONSIBLE PARTY DATE PREPARER: /s/Steve Reinsch Assistant Controller ------------------------------------------- -------------------- ORIGINAL SIGNATURE OF PREPARER TITLE Steve Reinsch February 23, 2005 ------------------------------------------- -------------------- PRINTED NAME OF PREPARER DATE 1 Avado Brands, Inc. January 2005 Monthly Operating Report As announced by the Company in a Form 8-K filed with the Securities and Exchange Commission on November 24, 2004, the Company has concluded that certain quarterly and annual financial statements previously issued as 10-K or 10-Q Filings should no longer be relied upon because of errors in such financial statements. The material errors identified include the following: Rent Expense. The Company has historically had a policy of recording rent expense on a straight-line basis over the initial lease term. The Company now believes the proper treatment for rent that escalates over time should be to recognize the expense on a straight-line basis over the lease term (inclusive of renewal options the Company is reasonably expected to exercise) rather than over the initial term of the lease. The Company believes that the resulting cumulative understatement of rent expense and the cumulative understatement of accrued rent expense liability, as of December 28, 2003, was approximately $13.1 million. In addition, the Company believes that certain of its lease agreements should be accounted for as capital rather than operating leases. The Company estimates that the resulting understatement of its capital lease obligations as of December 28, 2003 was approximately $10.1 million. Fixed Assets. An evaluation of the Company's premises and equipment accounting practices identified certain errors resulting in an overstatement of recorded net book values. In addition, the Company's depreciable lives for certain leasehold improvements have historically been based upon the useful lives of the assets, which for certain leasehold improvements is longer than the remaining term of the associated lease, including available renewal option periods. Because of these errors, the Company estimates the net book value of its premises and equipment was overstated by approximately $5.4 million as of December 28, 2003. Employee Partner Programs. Certain of the Company's employee partner programs, which were amended in 2002, have been historically accounted for as ownership interests. The Company now believes that they should have been accounted for as compensation agreements from the date of the amendments. The cumulative effect of this error, as of December 28, 2003, is estimated to be less than $0.5 million. The Company does not believe that management's decisions prior to filing Chapter 11 or the decisions made while in Chapter 11 would have materially changed had the Company been aware of these accounting errors earlier. The Monthly Operating Reports the Company has furnished to the Bankruptcy Court and filed with the Securities and Exchange Commission on Form 8-K since the filing of the Company's Chapter 11 petition, which are not prepared on the basis of generally accepted accounting principles, also contain such errors. Had the proper accounting treatment of these items been reflected in the MORs, it would not have had a material impact on the Company's cash flow or the amount of its reported or paid post-petition liabilities. The financial statements contained in the following January Monthly Operating Report reflect adjustments to rent expense and depreciation expense to properly state the results of operations for January 2005 and future months. Additionally, the Company has adjusted the January consolidated balance sheet to correct the cumulative overstatement of its fixed asset balances. The Company has not made adjustments to the consolidated balance sheet to reflect the cumulative misstatement of accrued rent liability and capital lease obligations. The Company is in the process of completing its evaluation of the errors and is attempting to resolve such issues in a timely manner. 2 Monthly Operating Report CASE NAME: Avado Brands, Inc. ACCRUAL BASIS-1 CASE NUMBER: 04-31555 rwd, 05/05 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 ------------------------------------------------------------------------------- 3 Avado Brands, Inc. Consolidating Balance Sheet As of January 30, 2005 (Amounts in Thousands)
Don Total Pablo's Hops Corporate Eliminate Avado ---------------------------------------------------------------------------------------------------- ASSETS CURRENT ASSETS: Cash & Cash Equivalents $ (1,180.2) (718.4) 3,485.7 - 1,587.1 Restricted Cash - - 16,382.6 - 16,382.6 Short Term Investments - - - - - ---------------------------------------------------------------------------------------------------- Total Cash and Cash Equivalents(1,180.2) (718.4) 19,868.3 - 17,969.7 Accounts Receivable 2,609.3 751.9 1,303.0 - 4,664.2 Inventories 2,312.7 1,120.9 11.8 - 3,445.4 Prepaid Expenses 1,005.1 424.4 1,775.0 - 3,204.5 Other Current Assets - - 181.1 - 181.1 Assets Held for Sale - 865.8 816.9 - 1,682.7 ---------------------------------------------------------------------------------------------------- Total Current Assets 4,746.9 2,444.6 23,956.1 - 31,147.6 PREMISES AND EQUIPMENT: Land 9,006.4 1,455.9 227.8 - 10,690.1 Buildings - Owned 17,175.0 1,686.2 7,496.5 - 26,357.7 Buildings Under Ground Lease 80,507.1 24,888.4 - - 105,395.5 Leasehold Improvements 2,035.0 2,730.2 - - 4,765.2 Furniture & Equipment 49,138.1 14,499.8 4,413.8 - 68,051.7 Building Under Capital Lease 3,855.0 780.0 - - 4,635.0 Asset Revaluation - - - - - Construction in Progress 436.6 183.6 23.4 - 643.6 ---------------------------------------------------------------------------------------------------- Total Premises & Equipment 162,153.2 46,224.1 12,161.5 - 220,538.8 Less: Accumulated Depreciation and Amortization (74,149.7) (13,505.8) (7,521.7) - (95,177.2) ---------------------------------------------------------------------------------------------------- Premises and Equipment, Net 88,003.5 32,718.3 4,639.8 125,361.6 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 - - 4,760.4 - 4,760.4 Prepaid Rent/Int.-SLB, Net 8,991.6 3,171.2 - - 12,162.8 Deferred Income Tax Benefit - - 11,620.0 - 11,620.0 Other Assets, Net 1,868.3 1,006.3 1,182.7 - 4,057.3 ---------------------------------------------------------------------------------------------------- Total Assets $171,349.3 32,005.4 46,159.0 (60,404.0) 189,109.7 ==================================================================================================== LIABILITIES AND S/H EQUITY (DEFICIT) LIABILITIES NOT SUBJECT TO COMPROMISE CURRENT LIABILITIES: ACCOUNTS PAYABLE: Bank Overdrafts $ - - 3,474.6 - 3,474.6 Accounts Payable 373.4 171.9 5,791.2 - 6,336.5 Accounts Payable - Related (8,001.6) 45,598.6 13,489.1 (51,086.7) (.6) Intercompany Allocation 105,672.9 46,425.9 20,643.2 (172,742.0) - ---------------------------------------------------------------------------------------------------- Total Accounts Payable 98,044.7 92,196.4 43,398.1 (223,828.7) 9,810.5 ACCRUED LIABILITIES: Payroll 3,483.6 886.1 486.2 - 4,855.9 Bonuses 298.6 92.9 495.8 - 887.3 Benefits and Taxes 448.2 130.9 1,165.0 - 1,744.1 Rents 2,642.5 211.0 - - 2,853.5 Interest - - 1,547.8 - 1,547.8 Insurance - - 5,793.0 - 5,793.0 Property Taxes 924.9 343.9 7.0 - 1,275.8 Sales Tax Payable 1,000.8 402.8 5.0 - 1,408.6 Other 1,742.4 1,212.8 1,349.8 - 4,305.0 ---------------------------------------------------------------------------------------------------- Total Accrued Liabilities 10,541.0 3,280.4 10,849.6 - 24,671.0 Current Installments of Long-Term Debt - - 40,002.3 - 40,002.3 Income Tax - - 43.2 - 43.2 ---------------------------------------------------------------------------------------------------- Total Current Liabilities 108,585.7 95,476.8 94,293.2 (223,828.7) 74,527.0 Long-Term Debt - - - - - Capital Lease Obligation - - - - - Other Long-Term Liabilities - 575.5 - - 575.5 ---------------------------------------------------------------------------------------------------- Total Liabilities not Subject to Compromise 108,585.7 96,052.3 94,293.2 (223,828.7) 75,102.5 Liabilities Subject to Compromise 11,882.0 14,279.5 214,401.8 - 240,563.3 ---------------------------------------------------------------------------------------------------- Total Liabilities 120,467.7 110,331.8 308,695.0 (223,828.7) 315,665.8 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 40,416.2 (104,263.7) (212,383.9) 97,344.7 (178,886.7) Net Earnings 805.9 24.3 (2,988.0) - (2,157.8) Less: Dividends Paid - - (7,042.0) - (7,042.0) ---------------------------------------------------------------------------------------------------- Total Shareholders' Equity (Deficit) 50,881.6 (78,326.4) (169,298.7) 163,424.7 (33,318.8) Less: Treasury Stock - - (96,416.8) - (96,416.8) ---------------------------------------------------------------------------------------------------- Total Liabilities & Shareholders' Equity (Deficit) $171,349.3 32,005.4 46,159.0 (60,404.0) 189,109.7 ====================================================================================================
4 Avado Brands, Inc. Consolidated Balance Sheet As of January 30, 2005 (Amounts in Thousands)
August September October November December January ---------------------------------------------------------------------------------------------------------------- ASSETS CURRENT ASSETS: Cash & Cash Equivalents $ 1,742.2 1,450.0 1,492.0 1,567.4 1,740.8 1,587.1 Restricted Cash 18,244.9 18,241.7 18,346.0 18,304.2 16,426.9 16,382.6 Short Term Investments - - - - - - ---------------------------------------------------------------------------------------------------------------- Total Cash and Cash Equivalents 19,987.1 19,691.7 19,838.0 19,871.6 18,167.7 17,969.7 Accounts Receivable 4,502.0 4,101.0 4,489.5 4,067.6 3,884.4 4,664.2 Inventories 4,030.4 3,584.7 3,448.0 3,498.2 3,390.1 3,445.4 Prepaid Expenses 4,220.3 3,578.9 3,577.1 3,574.6 2,589.4 3,204.5 Other Current Assets 764.8 634.1 655.9 513.1 298.9 181.1 Assets Held for Sale - 2,205.2 2,213.7 1,927.3 1,677.5 1,682.7 ---------------------------------------------------------------------------------------------------------------- Total Current Assets 33,504.6 33,795.6 34,222.2 33,452.4 30,008.0 31,147.6 PREMISES AND EQUIPMENT: Land 11,613.1 10,843.4 10,843.4 10,843.4 10,690.1 10,690.1 Buildings - Owned 30,040.1 27,657.7 27,657.7 27,666.1 26,357.6 26,357.6 Buildings Under Ground Lease 112,014.2 106,996.8 107,026.2 107,034.8 105,372.7 105,395.5 Leasehold Improvements 7,103.9 4,730.0 4,768.3 4,763.7 4,763.7 4,765.1 Furniture & Equipment 76,933.0 69,094.5 69,226.2 69,296.8 68,067.5 68,051.7 Building Under Capital Lease 4,635.0 4,635.0 4,635.0 4,635.0 4,635.0 4,635.0 Asset Revaluation (2,298.3) - - - - - Construction in Progress 21.1 68.6 135.6 240.5 423.7 643.6 ---------------------------------------------------------------------------------------------------------------- Total Premises & Equipment 240,062.1 224,026.0 224,292.4 224,480.3 220,310.3 220,538.6 Less: Accumulated Depreciation and Amortization (95,385.7) (89,903.8) (90,714.9) (91,501.5) (94,548.3) (95,177.1) ---------------------------------------------------------------------------------------------------------------- Premises and Equipment, Net 144,676.4 134,122.2 133,577.5 132,978.8 125,762.0 125,361.5 Goodwill - - - - - - Goodwill Allocation - - - - - - Less: Accumulated Amortization - - - - - - ---------------------------------------------------------------------------------------------------------------- Goodwill, Net - - - - - - Notes Receivable - - - - - - Def. Loan/Lease Costs, Net 5,456.6 5,446.8 5,437.0 5,427.2 4,766.8 4,760.4 Prepaid Rent/Int.-SLB, Net 17,194.3 17,088.2 16,995.2 16,902.2 12,231.8 12,162.8 Deferred Income Tax Benefit 11,620.0 11,620.0 11,620.0 11,620.0 11,620.0 11,620.0 Other Assets, Net 3,880.0 3,880.0 3,869.5 3,965.4 4,020.7 4,057.3 ---------------------------------------------------------------------------------------------------------------- Total Assets $ 216,331.9 205,952.8 205,721.4 204,346.0 188,409.3 189,109.6 ================================================================================================================ LIABILITIES AND S/H EQUITY (DEFICIT) LIABILITIES NOT SUBJECT TO COMPROMISE CURRENT LIABILITIES: ACCOUNTS PAYABLE: Bank Overdrafts $ 2,882.3 2,476.6 2,790.8 2,248.1 2,155.6 3,474.6 Accounts Payable 7,356.1 5,726.7 7,340.6 7,904.9 6,915.2 6,336.6 Accounts Payable - Related - - - - - - Intercompany Allocation - - - - - - ---------------------------------------------------------------------------------------------------------------- Total Accounts Payable 10,238.4 8,203.3 10,131.4 10,153.0 9,070.8 9,811.2 ACCRUED LIABILITIES: Payroll 4,870.3 4,854.4 5,067.7 5,088.1 4,763.5 4,855.9 Bonuses 825.4 1,109.6 730.6 803.7 991.1 887.3 Benefits and Taxes 1,714.8 1,758.7 1,572.1 1,486.0 1,677.9 1,744.1 Rents 3,844.2 3,892.2 3,882.2 3,843.6 2,767.8 2,853.6 Interest 940.9 1,061.5 1,143.8 1,222.3 1,501.9 1,547.8 Insurance 5,070.0 5,660.5 5,792.5 5,733.3 5,759.8 5,793.0 Property Taxes 1,501.8 1,603.5 1,603.4 1,509.9 1,513.2 1,275.8 Sales Tax Payable 1,639.4 1,801.0 1,359.6 2,370.9 2,146.8 1,408.8 Other 3,716.2 5,337.9 4,293.3 3,955.2 4,449.6 4,304.9 ---------------------------------------------------------------------------------------------------------------- Total Accrued Liabilities 24,123.0 27,079.4 25,445.2 26,013.0 25,571.6 24,671.2 Current Installments of Long-Term Debt 34,252.3 36,052.3 38,152.3 38,252.3 36,952.3 40,002.3 Income Tax 54.2 54.1 54.1 44.8 43.2 43.2 ---------------------------------------------------------------------------------------------------------------- Total Current Liabilities 68,667.9 71,389.1 73,783.0 74,463.1 71,637.9 74,527.9 Long-Term Debt - - - - - - Capital Lease Obligation - - - - - - Other Long-Term Liabilities 682.6 677.5 672.8 641.0 605.9 575.5 ---------------------------------------------------------------------------------------------------------------- Total Liabilities not Subject to Compromise 69,350.5 72,066.6 74,455.8 75,104.1 72,243.8 75,103.4 Liabilities Subject to Compromise 233,951.0 238,697.3 239,796.7 239,829.7 240,564.5 240,563.3 ---------------------------------------------------------------------------------------------------------------- Total Liabilities 303,301.5 310,763.9 314,252.5 314,933.8 312,808.3 315,666.7 Convertible Securities 3,179.5 3,179.5 3,179.5 3,179.5 3,179.5 3,179.5 SHAREHOLDERS' EQUITY (DEFICIT) Common Stock 435.7 435.7 435.7 435.7 435.7 435.7 Additional Paid-In Capital 154,332.0 154,332.0 154,332.0 154,332.0 154,332.0 154,332.0 Retained Earnings (108,576.7) (108,576.7) (108,576.7) (108,576.7) (108,576.7)(178,887.2) Net Earnings (32,881.3) (50,722.8) (54,442.8) (56,499.5) (70,310.7) (2,158.3) Less: Dividends Paid (7,042.0) (7,042.0) (7,042.0) (7,042.0) (7,042.0) (7,042.0) ---------------------------------------------------------------------------------------------------------------- Total Shareholders' Equity (Deficit) 6,267.7 (11,573.8) (15,293.8) (17,350.5) (31,161.7) (33,319.8) Less: Treasury Stock (96,416.8) (96,416.8) (96,416.8) (96,416.8) (96,416.8) (96,416.8) ---------------------------------------------------------------------------------------------------------------- Total Liabilities & Shareholders' Equity (Deficit) $216,331.9 205,952.8 205,721.4 204,346.0 188,409.3 189,109.6 ================================================================================================================
Footnotes: Restricted Cash - The balance represents approximately $11.7 million in cash being held by Wells Fargo and LaSalle Bank as collateral on corresponding letters of credit. An additional $4.7 million is being held by AIG and XL Specialty as collateral on the worker's comp and general liability insurance programs. Current Installments of LTD - The balance represents outstanding borrowings under the DIP credit facility. 5 Monthly Operating Report CASE NAME: Avado Brands, Inc. ACCRUAL BASIS-2 CASE NUMBER: 04-31555 rwd, 01/05 CONSOLIDATED INCOME STATEMENT MONTH MONTH MONTH QUARTER REVENUES January ------------------------------------------------------------------------------- 1. GROSS REVENUES $20,728 ------------------------------------------------------------------------------- 2. LESS: RETURNS & DISCOUNTS $44 ------------------------------------------------------------------------------- 3. NET REVENUE $20,684 ------------------------------------------------------------------------------- COST OF GOODS SOLD ------------------------------------------------------------------------------- 4. COGS $5,676 ------------------------------------------------------------------------------- 5. PAYROLL & BENEFITS $7,584 ------------------------------------------------------------------------------- 6. ------------------------------------------------------------------------------- 7. TOTAL COST OF GOODS SOLD $13,260 ------------------------------------------------------------------------------- 8. GROSS PROFIT $7,424 ------------------------------------------------------------------------------- OPERATING EXPENSES ------------------------------------------------------------------------------- 9. CONTROLLABLE EXPENSES $3,338 ------------------------------------------------------------------------------- 10. ------------------------------------------------------------------------------- 11. GENERAL & ADMINISTRATIVE $1,412 ------------------------------------------------------------------------------- 12. RENT & LEASE $1,100 ------------------------------------------------------------------------------- 13. OTHER (See Notes) $1,051 ------------------------------------------------------------------------------- 14. SPECIAL CHARGE $227 ------------------------------------------------------------------------------- 15. TOTAL OPERATING EXPENSES $7,128 ------------------------------------------------------------------------------- 16. INCOME BEFORE NON-OPERATING INCOME & EXPENSE $296 ------------------------------------------------------------------------------- OTHER INCOME & EXPENSES ------------------------------------------------------------------------------- 17. NON-OPERATING INCOME $0 ------------------------------------------------------------------------------- 18. NON-OPERATING EXPENSE $10 ------------------------------------------------------------------------------- 19. INTEREST EXPENSE $693 ------------------------------------------------------------------------------- 20. DEPRECIATION / DEPLETION $776 ------------------------------------------------------------------------------- 21. AMORTIZATION $146 ------------------------------------------------------------------------------- 22. OTHER $0 ------------------------------------------------------------------------------- 23. NET OTHER INCOME & EXPENSES $1,625 ------------------------------------------------------------------------------- REORGANIZATION EXPENSES ------------------------------------------------------------------------------- 24. PROFESSIONAL FEES (See Notes) $815 ------------------------------------------------------------------------------- 25. U.S. TRUSTEE FEES $15 ------------------------------------------------------------------------------- 26. OTHER (ATTACH LIST) $0 ------------------------------------------------------------------------------- 27. TOTAL REORGANIZATION EXPENSES $830 ------------------------------------------------------------------------------- 28. INCOME TAX $0 ------------------------------------------------------------------------------- 29. NET PROFIT (LOSS) ($2,159) ------------------------------------------------------------------------------- Notes: Amounts are in thousands. Line 13: Other Operating Expenses are primarily comprised of marketing, insurance and taxes, gains and losses on disposals of f/a, net of DP's royalty income. 6 Monthly Operating Report CASE NAME: Avado Brands, Inc. ACCRUAL BASIS-2.1 CASE NUMBER: 04-31555 rwd, 01/05 CONSOLIDATING INCOME STATEMENT Don Pablo's Hops Corporate Consolidated REVENUES TOTAL ------------------------------------------------------------------------------- 1. GROSS REVENUES $14,863 $5,865 $0 $20,728 ------------------------------------------------------------------------------- 2. LESS:RETURNS & DISCOUNTS $44 $0 $44 ------------------------------------------------------------------------------- 3. NET REVENUE $14,819 $5,865 $0 $20,684 ------------------------------------------------------------------------------- COST OF GOODS SOLD ------------------------------------------------------------------------------- 4. COGS $3,782 $1,894 $5,676 ------------------------------------------------------------------------------- 5. PAYROLL & BENEFITS $5,452 $2,132 $7,584 ------------------------------------------------------------------------------- 6. ------------------------------------------------------------------------------- 7. TOTAL COST OF GOODS SOLD $9,234 $4,026 $0 $13,260 ------------------------------------------------------------------------------- 8. GROSS PROFIT $5,585 $1,839 $0 $7,424 ------------------------------------------------------------------------------- OPERATING EXPENSES ------------------------------------------------------------------------------- 9. CONTROLLABLE EXPENSES $2,468 $870 $3,338 ------------------------------------------------------------------------------- 10. ------------------------------------------------------------------------------- 11. GENERAL & ADMINISTRATIVE $0 $0 $1,412 $1,412 ------------------------------------------------------------------------------- 12. RENT & LEASE $768 $332 $1,100 ------------------------------------------------------------------------------- 13. OTHER (See Notes) $751 $318 ($18) $1,051 ------------------------------------------------------------------------------ 14. SPECIAL CHARGE $204 $23 $227 ------------------------------------------------------------------------------- 15. TOTAL OPERATING EXPENSES $4,191 $1,543 $1,394 $7,128 ------------------------------------------------------------------------------- 16. INCOME BEFORE NON-OPERATING INCOME & EXPENSE $1,394 $296 ($1,394) $296 ------------------------------------------------------------------------------- OTHER INCOME & EXPENSES ------------------------------------------------------------------------------- 17. NON-OPERATING INCOME $0 $0 $0 $0 ------------------------------------------------------------------------------- 18. NON-OPERATING EXPENSE $0 $0 $10 $10 ------------------------------------------------------------------------------- 19. INTEREST EXPENSE $0 $0 $693 $693 ------------------------------------------------------------------------------- 20. DEPRECIATION / DEPLETION $506 $218 $52 $776 ------------------------------------------------------------------------------- 21. AMORTIZATION $91 $55 $0 $146 ------------------------------------------------------------------------------- 22. OTHER $0 $0 $0 $0 ------------------------------------------------------------------------------- 23. NET OTHER INCOME & EXPENSES $597 $273 $755 $1,625 ------------------------------------------------------------------------------- REORGANIZATION EXPENSES ------------------------------------------------------------------------------- 24. PROFESSIONAL FEES $0 $0 $815 $815 ------------------------------------------------------------------------------- 25. U.S. TRUSTEE FEES $0 $0 $15 $15 ------------------------------------------------------------------------------- 26. OTHER (ATTACH LIST) ------------------------------------------------------------------------------- 27. TOTAL REORGANIZATION EXPENSES $0 $0 $830 $830 ------------------------------------------------------------------------------- 28. INCOME TAX ------------------------------------------------------------------------------- 29. NET PROFIT (LOSS) $797 $23 ($2,979) ($2,159) ------------------------------------------------------------------------------- Notes: Amounts are in thousands. Line 13: Other Operating Expenses are primarily comprised of marketing, insurance and taxes, gains and losses on disposals of f/a, net of DP's royalty income. 7 Monthly Operating Report CASE NAME: Avado Brands, Inc. ACCRUAL BASIS-3 CASE NUMBER: 04-31555 rwd, 01/05 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 ------------------------------------------------------------------------------- 8 Avado Brands, Inc. January 3, 2005 to January 30, 2005 Consolidating Cash Flow
01/03/05 01/03/05 01/03/05 01/03/05 01/30/05 01/30/05 01/30/05 01/30/05 ------------------------------------------------------ Don Pablo's Hops Corp. Consolidated ------------------------------------------------------ Cash - Beginning (01/03/05) 1,740,752 ------------------------------------------------------ Receipts: 15,306,550 6,112,364 130,365 21,549,279 ------------------------------------------------------ Total Receipts 15,306,550 6,112,364 130,365 21,549,279 ------------------------------------------------------ Operating Disbursements: Payroll, Benefits & Insurance 5,491,651 2,186,880 618,537 8,297,068 GL, Prop & WC Insurance Premiums - - 1,195,482 1,195,482 Food & Beverage 4,731,243 2,150,653 - 6,881,896 Utilities, & Property Expenses 872,145 325,595 - 1,197,740 Rent 996,024 467,237 - 1,463,262 Marketing 442,405 36,550 - 478,955 Sales Tax 1,552,691 587,031 - 2,139,722 Property Tax 512,548 31,772 - 544,320 Other 713,512 411,032 614,262 1,738,806 ----------------------------------------------------- Total Operating Disbursements: 15,312,219 6,196,749 2,428,281 23,937,250 ----------------------------------------------------- Adjusted Total Operating Cash Flow (5,669) (84,385) (2,297,916) (2,387,971) ----------------------------------------------------- Other Disbursements Repairs & Maint./Capital Expenditures 528,410 143,878 24,170 696,458 AlixPartners - - 233,836 233,836 ----------------------------------------------------- Total Other Disbursements: 528,410 143,878 258,006 930,294 ----------------------------------------------------- Net Operating Cash Flow (534,079) (228,263) (2,555,922) (3,318,264) ----------------------------------------------------- Other Non-Operating Disbursements Monthly Interest - - 403,848 403,848 Financing Fees - - - - Retirement Plan Funding - - 58,065 58,065 Board of Directors Fees - - 19,066 19,066 KERP/KESP - - - - Utility Deposit - - - - US Trustee - - - - DIP Counsel - - - - Bankruptcy Professionals - - 326,551 326,551 Impact of Bankruptcy on Vendors - - - - Debt Payments: Senior and Sub Note Interest Payments - - - - ----------------------------------------------------- Total Other Non-Operating Disbursements - - 807,530 807,530 ----------------------------------------------------- Total Disbursements 15,840,629 6,340,627 3,493,817 25,675,073 ----------------------------------------------------- Net Cash Flow (534,079) (228,263) (3,363,452) (4,125,794) ----------------------------------------------------- Revolver borrowing (paydown) net of debt payoffs and LOC fundings 3,149,080 Net cash impact of LOC activity (3) (99,080) Increase (decrease) in bank overdrafts (2) 1,318,258 Other (primarily net change in deposits in transit) (396,115) ------------ Cash - End of Month 1,587,101 ============ DDJ Beginning Loan Balance 24,903,322 Borrowings (1) 12,300,000 Paydowns (1) (9,150,920) Cash Held by AIG in lieu of LC - ------------ DDJ Ending Loan Balance 28,052,402 ------------ DDJ LOC Collateral Advances Beg. Balance 12,048,929 105% of Wells Fargo LCs (1) - Other Change in LC Collateral Need (99,080) ------------ DDJ LOC Collateral Advances Ending Balance 11,949,849 ------------ Total Ending DDJ Borrowings 40,002,251 ============
(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. (2) Bank overdrafts represent checks written on zero balance accounts. To the extent there is not a right of offset with the bank, these outstanding checks are reclassified to "Bank Overdrafts" within the current liabilities section of the consolidated balance sheet. 9 Avado Brands, Inc. February 5 - January 30, 2005 Consolidated Cash Flow
------------------------------------------------------------------------------- Feb 5 - 22 March April May June July Consolidated Consolidated Consolidated Consolidated Consolidated Consolidated ------------------------------------------------------------------------------- Cash - Beginning 4,342,487 2,166,559 2,545,730 2,039,975 2,005,458 1,711,877 ------------------------------------------------------------------------------- Receipts: Don Pablo's 10,189,478 22,849,009 18,262,266 19,552,633 23,437,843 18,097,857 Hops 5,532,158 13,207,397 9,516,406 9,194,105 10,327,568 7,598,963 Other 23,547 44,502 75,203 126,647 220,965 103,953 ------------------------------------------------------------------------------- Total Receipts 15,745,183 36,100,908 27,853,875 28,873,384 33,986,375 25,800,774 ------------------------------------------------------------------------------- Operating Disbursements: Payroll, Benefits & Insurance 7,928,042 12,735,344 10,440,262 10,690,066 13,851,197 10,239,681 GL, Prop & WC Insurance Premiums 306,659 272,658 141,882 141,883 141,883 141,883 Food & Beverage 4,944,483 10,520,366 8,168,364 9,142,749 9,611,267 7,790,098 Utilities, & Property Expenses 123,524 1,086,216 1,595,476 1,250,429 1,766,646 1,277,627 Rent - 1,758,509 1,718,423 1,708,159 1,766,439 1,615,919 Marketing 41,870 528,852 535,146 995,218 1,292,628 1,352,945 Sales Tax 1,620,269 1,941,757 2,299,621 1,800,216 2,007,093 1,863,901 Property Tax - 529,756 78,947 251,063 133,174 121,794 Other 390,453 1,930,921 1,664,227 1,907,844 2,048,943 1,669,444 ------------------------------------------------------------------------------- Total Operating Disbursements: 15,355,300 31,304,380 26,642,349 27,887,627 32,619,269 26,073,293 ------------------------------------------------------------------------------- Adjusted Total Operating Cash Flow 389,883 4,796,528 1,211,526 985,758 1,367,106 (272,519) ------------------------------------------------------------------------------- Other Disbursements Repairs & Maint./Capital Expenditures 455,385 519,200 501,890 506,417 831,194 830,605 AlixPartners - - - 713,774 371,349 262,393 ------------------------------------------------------------------------------- Total Other Disbursements: 455,385 519,200 501,890 1,220,191 1,202,543 1,092,998 ------------------------------------------------------------------------------- Net Operating Cash Flow (65,502) 4,277,328 709,636 (234,433) 164,563 (1,365,517) ------------------------------------------------------------------------------- Other Non-Operating Disbursements Monthly Interest 199,967 189,983 280,973 283,646 267,456 281,003 Financing Fees 1,050,000 - 22,200 - 3,044 - Board of Directors Fees 2,000 17,830 21,025 25,182 100,300 29,577 KERP/KESP - - - - - - Utility Deposit - - - - - 21,478 US Trustee - - - 45,500 - - DIP Counsel 189,330 - - 173,402 85,915 8,406 Bankruptcy Professionals - - 53,962 720,392 1,163,879 646,501 Impact of Bankruptcy on Vendors 153,500 10,000 - 801,239 19,354 - Debt Payments: Senior and Sub Note Interest Payments - - - - - - ------------------------------------------------------------------------------- Total Other Non-Operating Disbursements 1,594,797 217,813 378,160 2,049,362 1,639,949 986,966 ------------------------------------------------------------------------------- Total Disbursements 17,405,482 32,041,393 27,522,399 31,157,179 35,461,761 28,153,257 ------------------------------------------------------------------------------- Net Cash Flow (1,660,299) 4,059,515 331,476 (2,283,795) (1,475,385) (2,352,484) ------------------------------------------------------------------------------- Revolver borrowing (paydown) net of debt payoffs and LOC fundings (514,747) (4,470,000) (460,000) 1,725,000 1,087,350 2,400,001 Net cash impact of LOC activity (3) - - 1,725,000 (1,725,000) (353,850) - Increase (decrease) in bank overdrafts (2) - 907,917 (1,573,800) 2,377,335 421,503 637,150 Other (primarily net change in deposits in transit) (882) (118,261) (528,431) (128,057) 26,801 (481,365) ------------------------------------------------------------------------------ Cash - End of Month 2,166,559 2,545,730 2,039,975 2,005,458 1,711,877 1,915,179 ============================================================================== DDJ Beginning Loan Balance - 19,560,792 15,090,792 14,630,792 16,355,792 17,443,142 Borrowings (1) 22,000,792 7,000,000 3,240,000 7,300,000 10,200,000 9,400,001 Paydowns (1) (6,690,000) (11,470,000) (3,700,000) (5,575,000) (9,112,650) (7,000,000) Cash Held by AIG I lieu of LC 4,250,000 - - - - - ------------------------------------------------------------------------------ DDJ Ending Loan Balance 19,560,792 15,090,792 14,630,792 16,355,792 17,443,142 19,843,143 ------------------------------------------------------------------------------ DDJ LOC Collateral Advances Beg. Bal. - 13,949,208 13,949,208 16,009,208 14,284,208 13,930,358 105% of Wells Fargo LCs (1) 13,949,208 - - - - - Other Change in LC Collateral Need 2,060,000 (1,725,000) (353,850) - ------------------------------------------------------------------------------ DDJ LOC Collateral Advances End. Bal. 13,949,208 13,949,208 16,009,208 14,284,208 13,930,358 13,930,358 ------------------------------------------------------------------------------ Total Ending DDJ Borrowings 33,510,000 29,040,000 30,640,000 30,640,000 31,373,500 33,773,501 ==============================================================================
10 Avado Brands, Inc. February 5 - January 30, 2005 Consolidated Cash Flow (cont.)
------------------------------------------------------------------------------------------ August September October November December Consolidated Consolidated Consolidated Consolidated Consolidated ------------------------------------------------------------------------------------------ Cash - Beginning 1,915,179 1,742,163 1,449,972 1,491,992 1,567,395 ------------------------------------------------------------------------------------------ Receipts: Don Pablo's 18,537,821 20,661,729 15,806,002 15,757,353 24,632,474 Hops 8,195,471 8,981,235 5,614,983 5,869,100 9,000,235 Other 660,589 293,277 328,526 1,567,430 1,500,414 ------------------------------------------------------------------------------------------ Total Receipts 27,393,881 29,936,240 21,749,511 23,193,883 35,133,122 ------------------------------------------------------------------------------------------ Operating Disbursements: Payroll, Benefits & Insurance 10,561,174 12,035,341 9,074,844 8,654,965 13,026,280 GL, Prop & WC Insurance Premiums 141,883 141,883 - - - Food & Beverage 7,976,469 9,269,114 6,281,414 6,668,588 9,983 334 Utilities, & Property Expenses 1,545,148 1,667,359 1,173,465 1,357,513 1,440,455 Rent 1,642,546 1,612,974 1,383,275 1,569,451 2,852,694 Marketing 321,278 983,773 760,840 554,859 659,822 Sales Tax 1,749,097 1,760,783 1,808,792 450,941 2,423,818 Property Tax 86,497 171,564 140,551 306,808 265,555 Other 1,530,880 1,764,648 1,406,485 1,439,975 2,840,536 ------------------------------------------------------------------------------------------ Total Operating Disbursements: 25,554,972 29,407,439 22,029,666 21,003,099 32,492,494 ------------------------------------------------------------------------------------------ Adjusted Total Operating Cash Flow 1,838,909 528,802 (280,154) 2,190,784 1,640,629 ------------------------------------------------------------------------------------------ Other Disbursements Repairs & Maint./Capital Expenditures 794,192 900,468 581,162 593,506 3,421 AlixPartners 315,210 260,466 288,617 240,903 253,378 ------------------------------------------------------------------------------------------ Total Other Disbursements: 1,109,402 1,160,934 869,779 834,409 256,799 ------------------------------------------------------------------------------------------ Net Operating Cash Flow 729,507 (632,132) (1,149,934) 1,356,375 1,383,830 ------------------------------------------------------------------------------------------ Other Non-Operating Disbursements Monthly Interest 318,025 310,877 327,415 352,887 362,147 Financing Fees - - 150,000 - - Retirement Plan Funding - - - - 369,861 Board of Directors Fees 11,400 23,971 13,000 26,151 24,5009 KERP/KESP 366,436 - - - - Utility Deposit - - - - - US Trustee 25,500 - - 65,500 - DIP Counsel 10,799 - 24,446 23,566 22,737 Bankruptcy Professionals 411,043 488,636 647,401 239,275 1,579,133 Impact of Bankruptcy on Vendors - - - - - Debt Payments: Senior and Sub Note Interest Payments - - - - - ------------------------------------------------------------------------------------------ Total Other Non-Operating Disbursements 1,143,203 823,484 1,162,262 707,379 2,358,378 ------------------------------------------------------------------------------------------ Total Disbursements 27,807,576 31,391,856 24,061,707 22,544,887 36,107,670 ------------------------------------------------------------------------------------------ Net Cash Flow (413,695) (1,455,616) (2,312,196) 648,997 (974,548) ------------------------------------------------------------------------------------------ Revolver borrowing (paydown) net of debt payoffs and LOC fundings 500,018 1,799,982 2,100,000 100,000 560,179 Net cash impact of LOC activity (3) (21,250) - - - (1,860,179) Increase (decrease) in bank overdrafts (2) (945,496) (405,629) 314,218 (542,710) (91,843) Other (primarily net change in deposits in transit) 707,408 (230,929) (60,002) (130,884) 2,539,748 ----------------------------------------------------------------------------------------- Cash - End of Month 1,742,163 1,449,972 1,491,992 1,567,395 1,740,752 ========================================================================================= DDJ Beginning Loan Balance 19,843,143 20,343,161 22,143,143 24,243,143 24,343,143 Borrowings (1) 9,400,018 10,899,982 7,700,000 7,000,000 14,960,179 Paydowns (1) (8,900,000) (9,100,000) (5,600,000) (6,900,000) (14,400,000) Cash Held by AIG I lieu of LC - - - - - ----------------------------------------------------------------------------------------- DDJ Ending Loan Balance 20,343,161 22,143,143 24,243,143 24,343,143 24,903,322 ----------------------------------------------------------------------------------------- DDJ LOC Collateral Advances Beg. Bal. 13,930,358 13,909,108 13,909,108 13,909,108 13,909,108 105% of Wells Fargo LCs (1) - - - - - Other Change in LC Collateral Need (21,250) - - - (1,860,179) ----------------------------------------------------------------------------------------- DDJ LOC Collateral Advances End. Bal. 13,909,108 13,909,108 13,909,108 13,909,108 12,048,929 ----------------------------------------------------------------------------------------- Total Ending DDJ Borrowings 34,252,269 36,052,251 38,152,251 38,252,251 36,952,251 =========================================================================================
11 Avado Brands, Inc. February 5 - January 30, 2005 Consolidated Cash Flow (cont.)
------------------------------------------------------------------------------------------ January Filing-to-Date Consolidated Consolidated ------------------------------------------------------------------------------------------ Cash - Beginning 1,740,752 4,342,487 ------------------------------------------------------------------------------------------ Receipts: Don Pablo's 15,306,550 223,091,014 Hops 6,112,364 99,149,985 Other 130,365 5,075,417 ------------------------------------------------------------------------------------------ Total Receipts 21,549,279 327,316,415 ------------------------------------------------------------------------------------------ Operating Disbursements: Payroll, Benefits & Insurance 8,297,068 127,534,264 GL, Prop & WC Insurance Premiums 1,195,482 2,626,096 Food & Beverage 6,881,896 97,238,140 Utilities, & Property Expenses 1,197,740 15,481,598 Rent 1,463,262 19,091,650 Marketing 478,955 8,506,185 Sales Tax 2,139,722 21,866,011 Property Tax 544,320 2,630,029 Other 1,738,806 20,333,163 ------------------------------------------------------------------------------------------ Total Operating Disbursements: 23,937,250 315,307,135 ------------------------------------------------------------------------------------------ Adjusted Total Operating Cash Flow (2,387,971) 12,009,281 ------------------------------------------------------------------------------------------ Other Disbursements Repairs & Maint./Capital Expenditures 696,458 7,213,897 AlixPartners 233,836 2,939,927 ------------------------------------------------------------------------------------------ Total Other Disbursements: 930,294 10,153,824 ------------------------------------------------------------------------------------------ Net Operating Cash Flow (3,318,264) 1,855,457 ------------------------------------------------------------------------------------------ Other Non-Operating Disbursements Monthly Interest 403,848 3,578,229 Financing Fees - 1,225,244 Retirement Plan Funding - - Board of Directors Fees 58,065 314,003 KERP/KESP 19,066 366,436 Utility Deposit - 21,478 US Trustee - 136,500 DIP Counsel - 538,602 Bankruptcy Professionals 326,551 6,276,772 Impact of Bankruptcy on Vendors - 984,093 Debt Payments: Senior and Sub Note Interest Payments - - ------------------------------------------------------------------------------------------ Total Other Non-Operating Disbursements 807,530 13,869,282 ------------------------------------------------------------------------------------------ Total Disbursements 25,675,073 339,330,240 ------------------------------------------------------------------------------------------ Net Cash Flow (4,125,794) (12,013,825) ------------------------------------------------------------------------------------------ Revolver borrowing (paydown) net of debt payoffs and LOC fundings 3,149,080 7,976,863 Net cash impact of LOC activity (3) (99,080) (2,334,359) Increase (decrease) in bank overdrafts (2) 1,318,258 2,416,903 Other (primarily net change in deposits in transit) (396,115) 1,199,031 ----------------------------------------------------------------------------------------- Cash - End of Month 1,587,101 1,587,101 ========================================================================================= DDJ Beginning Loan Balance 24,903,322 121,400,972 Borrowings (1) 12,300,000 (97,598,570) Paydowns (1) (9,150,920) 4,250,000 Cash Held by AIG I lieu of LC - - ----------------------------------------------------------------------------------------- DDJ Ending Loan Balance 28,052,402 28,052,402 ----------------------------------------------------------------------------------------- DDJ LOC Collateral Advances Beg. Bal. 12,048,929 - 105% of Wells Fargo LCs (1) - 13,949,208 Other Change in LC Collateral Need (99,080) (1,999,359) ----------------------------------------------------------------------------------------- DDJ LOC Collateral Advances End. Bal. 11,949,849 11,949,849 ----------------------------------------------------------------------------------------- Total Ending DDJ Borrowings 40,002,251 40,002,251 =========================================================================================
(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. (2) Bank overdrafts represent checks written on zero balance accounts. To the extent there is not a right of offset with the bank, these outstanding checks are reclassified to "Bank Overdrafts" within the current liabilities section of the consolidated balance sheet. (3) During the week ended April 25, 2004, the Company borrowed $2,060,000 to use as collateral for a $2,000,000 letter of credit related to the Company's bond program. After the LOC was put in place, the Company received a return of collateral which was being held by the insurance Company in lieu of a letter of credit, in the amount of $1,725,000. The Company received this amount on 4/23 but due to the timing of the receipt, was not able to pay down the credit facility until the following week. As such, the $1,725,000 balance was included in the cash balance at 4/25/04. 12 CASE NAME: Avado Brands, Inc. Monthly Operating Report CASE NUMBER: 04-31555 ACCRUAL BASIS-4 rwd, 01/05 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: January 30, 2005 0-30 31-60 61-90 91+ TAXES PAYABLE DAYS DAYS DAYS DAYS TOTAL ------------------------------------------------------------------------------- 1. FEDERAL $78,542 ------------------------------------------------------------------------------- 2. STATE $1,698,150 ------------------------------------------------------------------------------- 3. LOCAL $1,275,792 ------------------------------------------------------------------------------- 4. OTHER (ATTACH LIST) ------------------------------------------------------------------------------- 5. TOTAL TAXES PAYABLE $3,052,484 $0 $0 $0 $0 ------------------------------------------------------------------------------- ------------------------------------------------------------------------------- 6. ACCOUNTS PAYABLE $963,099 $93,310 $47,464 $30,741 $1,134,614 ------------------------------------------------------------------------------- *** *** *** STATUS OF POSTPETITION TAXES MONTH: January 30, 2005 BEGINNING AMOUNT ENDING TAX WITHHELD AND/ AMOUNT TAX FEDERAL LIABILITY* 0R ACCRUED PAID LIABILITY ------------------------------------------------------------------------------- 1. WITHHOLDING** $0 $850,579 $850,579 $0 ------------------------------------------------------------------------------- 2. FICA-EMPLOYEE** $0 $765,386 $765,386 $0 ------------------------------------------------------------------------------- 3. FICA-EMPLOYER** $0 $765,386 $765,386 $0 ------------------------------------------------------------------------------- 4. UNEMPLOYMENT $70,024 $78,530 $70,012 $78,542 ------------------------------------------------------------------------------- 5. INCOME ------------------------------------------------------------------------------- 6. OTHER (ATTACH LIST) ------------------------------------------------------------------------------- 7. TOTAL FEDERAL TAXES $70,024 $2,459,881 $2,451,363 $78,542 ------------------------------------------------------------------------------- STATE AND LOCAL ------------------------------------------------------------------------------- 8. WITHHOLDING $56,614 $262,795 $241,267 $78,142 ------------------------------------------------------------------------------- 9. SALES $2,146,785 $1,431,506 $2,169,531 $1,408,760 ------------------------------------------------------------------------------- 10. EXCISE ------------------------------------------------------------------------------- 11. UNEMPLOYMENT $140,597 $166,475 $139,041 ------------------------------------------------------------------------------- 12. REAL AND PERSONAL PROPERTY $1,513,165 $306,323 $543,696 $168,031 ------------------------------------------------------------------------------- 13. PERSONAL PROPERTY ------------------------------------------------------------------------------- 14. INCOME $43,217 $0 $0 $43,217 ------------------------------------------------------------------------------- 15. TOTAL STATE & LOCAL $3,900,378 $2,167,099 $3,093,535 $2,973,942 ------------------------------------------------------------------------------- 16. TOTAL TAXES $3,970,402 $4,626,980 $5,544,898 $3,052,484 ------------------------------------------------------------------------------- * 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. *** Non-current accounts payable relates primarily to professional services and other vendor claims which were paid during the Company's February accounting period. These invoices primarily relate to pre-petition and post-petition amounts that were processed in January related to periods prior to January. 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. 13 AVADO BRANDS, INC. BALANCE SHEET BREAKDOWN $ in '000's
Increase Increase Increase (Decrease) (Decrease) (Decrease) 12/29/02 12/28/03 01/02/05 01/02/05 vs. 01/02/05 vs. 12/29/02 vs. 12/28/03 ----------------------------------------------------------------------------------------------------------------------------------- Accounts Receivable: A/R (net) * 686 301 745 969 224 283 668 M&S Receivable 54 - - - - (54) - Allowance for Uncollectible - M&S - - - - - - - Credit cards ** 3,184 2,625 2,112 2,669 557 (515) 44 From joint venture - - - - - - - Employee/Partner Loans 270 8 - - - (270) (8) Interest receivable - current 894 863 1,027 1,027 - 133 164 Other (1) 2 - - - 1 (2) ----------------------------------------------------------------------------------------------------------------------------------- Totals 5,087 3,799 3,884 4,664 780 (423) 865 ===================================================================================================================================
* Increase primarily related to claims paid over retention - refunded in February ** Increase is due to total sales for last four days were higher in January than in December, and credit card usuage increased as a percent of sales 14 Monthly Operating Report CASE NAME: Avado Brands, Inc. ACCRUAL BASIS-5 CASE NUMBER: 04-31555 rwd, 01/05 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: January 2005 ------------------------------ 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. 15 Avado Brands, Inc, Cash Analysis as of January 30, 2005
Funds Transfer # of G/L Bank G/L Acct # JDE Name Method Rest Balance Balance ------------------------------------------------------------------------------------------------ Don Pablo's 50.1100.0101 Bank of America (AST) AST 17 127,794.09 19,384.14 50.1100.0102 Bank One (AST) AST 18 216,298.10 54,673.11 50.1100.0103 Fifth Third Bank (AST) AST 15 130,549.34 25,525.23 50.1100.0104 First Union AST 13 132,613.97 19,054.54 50.1100.0105 M&T Sweep 4 47,561.33 10,122.68 50.1100.0106 PNC Sweep/Internet 6 55,518.91 13,431.99 50.1100.0107 Wachovia Sweep/Internet 6 42,659.08 13,737.97 50.1100.0108 Wells Fargo (AST) AST 10 79,474.44 14,138.53 50.1100.0109 Wells Fargo Sweep 3 25,582.99 6,481.49 50.1100.0111 First Tennessee Sweep 1 9,191.88 2,706.58 50.1100.0112 Fleet Sweep 1 9,405.01 3,166.98 50.1100.5042 Wells Fargo Sweep 1 8,720.42 2,437.53 50.1100.5048 National City Sweep 1 20,126.67 7,175.56 50.1100.5051 US Bank Sweep 1 15,546.78 4,967.04 50.1100.5079 National City Sweep 1 20,272.04 7,208.06 50.1100.5087 National City Sweep 1 12,873.48 4,081.94 50.1100.5115 US Bank Sweep 1 13,385.73 4,249.00 50.1100.5120 National City Sweep 1 12,893.04 3,280.82 ------------------------------------ 980,467.30 215,823.19 50.1101.02 LaSalle Dep Concentration ZBA - 87,000.00 50.1101.04 LaSalle Payroll ZBA (386,545.24) - 50.1102.04 LaSalle A/P ZBA (1,864,299.70) - 50.1104.04 LaSalle BWL ZBA (30,026.52) - 50.1104.5026 Bank of America - Club A/C ZBA 4,716.89 1,598.20 50.1104.5042 Wells Fargo - Club A/C ZBA 4,945.50 1,821.10 50.1104.5047 Wells Fargo - Club A/C ZBA (68.96) - ------------------------------------ 101 (1,290,810.73) 306,242.49 Hops 202.1100.0101 Bank of America Dep Sweep (0.57) (0.57) 202.1100.0102 Bank One-CO Deposit Sweep/Actual 3 18,002.81 7,243.87 202.1100.0103 Fifth Third Deposit Sweep - (400.99) (400.99) 202.1100.0104 First Union Deposit AST 29 238,278.96 32,179.59 202.1100.0108 Wells Fargo Deposit Sweep 1 12,019.74 5,497.16 202.1100.0112 Amsouth/MS Depository Sweep 1 1,183.81 1,183.81 202.1100.0115 US Bank Depository Sweep/Actual 1 6,584.69 2,143.59 202.1100.0118 Fleet-KC Depository Sweep/Actual 2 32,520.85 9,876.69 ------------------------------------ 308,189.30 57,723.15 202.1049.02 LaSalle Dep Concentration ZBA - 19,000.00 202.1101.04 LaSalle Payroll ZBA (507,137.13) - 202.1102.04 LaSalle A/P ZBA (563,275.66) - 202.1104.04 LaSalle BWL ZBA (32.18) - ------------------------------------ 37 (762,255.67) 76,723.15 Corporate 007.1025.02 LaSalle Master Main Acct 323,752.98 217,753.14 Held Checks - N/A Entry Booked for Cash Adj. 3,474,552.39 N/A ------------------------------------ Avado Brands Master After Adj. 3,798,305.37 217,753.14 007.1049 ACH Wire Transfers - - 007.1049.01 Provident/Avado Corp - - 007.1049.02 LaSalle Dep Concentration - - 007.1050 Foothill/Avado Master - - 007.1052 Suntrust Tax Payment 24,531.02 24,531.02 007.1052.01 RBC/Provident Tax Settlement - - 007.1052.02 LaSalle Payroll Tax - - 007.1052.03 LaSalle Prop Tax - - 007.1052.04 LaSalle Sales Tax - - 007.1052.05 SERP Distributions-LaSalle 43,711.87 43,711.87 007.1100.SUN Suntrust - Depository 6,678.38 3,568.05 007.1101.04 LaSalle Payroll (32,320.40) - 007.1102.04 LaSalle A/P (384,229.68) - 007.1104.04 LaSalle BWL (30,438.86) - 007.1125.02 LaSalle Medical Claims - - 007.1125.03 JP Morgan Medical Claims 58,294.00 58,294.00 007.1126.02 LaSalle W/C G/L Claims - - ------------------------------------ 3,484,531.70 347,858.08 ------------------------------------ Total Cash Avado Brands 1,431,465.30 730,823.72 ==================================== Petty Cash 155,635.00 ------------------- Total Consolidated Cash 1,587,100.30 Per Balance Sheet 1,587,100.87 ------------------- Unlocated Difference (0.57)
16 Monthly Operating Report CASE NAME: Avado Brands, Inc. ACCRUAL BASIS - 6 CASE NUMBER: 04-31555 rwd, 01/05 MONTH: January 2005 ------------------------- 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. See Attachments ------------------------------------------------------------------------------- 2. ------------------------------------------------------------------------------- 3. ------------------------------------------------------------------------------- 4. ------------------------------------------------------------------------------- 5. ------------------------------------------------------------------------------- 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 $40,002,251 ------------------------------------------------------------------------------- 2. Leases $1,463,262 $1,463,262 $0 ------------------------------------------------------------------------------- 3. Adequate Protection Payments n/a $0 ------------------------------------------------------------------------------- 4. ------------------------------------------------------------------------------- 5. ------------------------------------------------------------------------------- 6. TOTAL $1,463,262 $1,463,262 $40,002,251 ------------------------------------------------------------------------------- 17 Avado Brands, Inc. Payments made to insiders for the period ending January 30, 2005
Cumulative Non-Qualified Monthly Cumulative Name 01/02/05 Wages Bonuses 401K Payout Severance Vacation Expenses Other Total 01/30/05 ----------------------------------------------------------------------------------------------------------------------------------- Emilio Alvarez-Recio 40,500 - - - - - - 2,000 2,000 42,500 Jerome Atkinson 45,783 - - - - - - 2,000 2,000 47,783 William Lapham 45,118 - - - - - - 2,000 2,000 47,118 Robert Sroka 95,895 - - - - - - 2,000 2,000 97,895 ----------------------------------------------------------------------------------------------------------------------------------- Subtotal BOD 227,296 - - - - - - 8,000 8,000 235,296 ----------------------------------------------------------------------------------------------------------------------------------- Rick Barbrick 166,933 116,428 - - - - 3,747 - 120,175 287,108 Robert Hogan - - - - - - 1,793 - 1,793 1,793 Robert Andreottola 316,328 20,769 - - - - 2,878 - 23,647 339,975 Mitchell Blocher 113,247 8,846 - - - - 1,005 - 9,851 123,098 Dannie Durham - - - - - - - - - - Don Garrison 145,733 8,462 - - - - 2,677 - 11,139 156,872 Greg Graber 212,060 12,462 - - - - 2,974 - 15,436 227,496 Gary Grimes 254,926 13,077 - - - - 6,501 - 19,578 274,504 Timothy Ligon 153,485 9,846 - - - - - - 9,846 163,331 Louis Profumo 323,069 23,077 - - - 5,769 1,427 - 30,273 353,342 Brett Shone 135,087 7,827 - - - - 2,983 - 10,810 145,897 Percy Williams 135,265 10,000 - - - - 156 - 10,156 145,421 ----------------------------------------------------------------------------------------------------------------------------------- Subtotal Officers 1,956,133 230,794 - - - 5,769 26,141 - 262,704 2,218,837 ----------------------------------------------------------------------------------------------------------------------------------- Total Payments 2,183,429 230,794 - - - 5,769 26,141 8,000 270,704 2,454,133 ===================================================================================================================================
18 AVADO BRANDS, INC. 22-Feb-05 --------------------------------- 80/20 PROFESSIONALS ---------------------------------
Services Services Services Services Services Services for month of for month of for month of for month of for month of for month of Feb-04 Mar-04 Apr-04 May-04 Jun-04 Jul-04 Actual Actual Actual Actual Actual Actual TOTAL BILLED FEES + EXPENSES Anderson Kill & Olick, PC $81,055.58 $143,595.48 $119,251.05 $126,469.58 $75,278.24 $63,574.76 Cox & Smith, Inc. $140,302.61 $142,256.23 $183,731.84 $129,422.26 $101,851.01 $108,342.71 Miller Buckfire Lewis Ying & Co., LLC (1) $100,000.00 $100,000.00 $120,239.64 $108,060.63 $111,957.25 $100,437.23 Munsch Hardt Kopf & Harr, PC $16,234.37 $15,565.16 $14,433.71 $13,632.86 $15,861.19 $7,821.32 Skadden, Arps, Slate, Meagher & Flom LLP $305,748.67 $204,849.67 $161,006.67 $155,911.00 $180,510.00 $73,595.00 Ernst & Young LLP (2) $55,645.00 $50,000.00 $58,831.00 $53,117.00 $57,197.00 $50,082.00 ------------------------------------------------------------------------------------------------------------------------------------ $698,986.23 $656,266.54 $657,493.91 $586,673.33 $542,654.69 $403,853.02 ------------------------------------------------------------------------------------------------------------------------------------ FEES AT 80% Anderson Kill & Olick, PC $60,874.00 $104,968.00 $92,334.40 $88,996.00 $51,742.00 $50,641.60 Cox & Smith, Inc. $100,077.60 $108,334.80 $144,517.60 $97,206.80 $75,789.40 $82,786.40 Miller Buckfire Lewis Ying & Co., LLC (1) $80,000.00 $80,000.00 $80,000.00 $80,000.00 $80,000.00 $80,000.00 Munsch Hardt Kopf & Harr, PC $12,344.00 $12,096.00 $9,724.00 $10,116.00 $12,228.00 $5,832.00 Skadden, Arps, Slate, Meagher & Flom LLP $233,792.00 $147,841.00 $117,796.00 $106,888.00 $130,504.00 $49,958.40 Ernst & Young LLP (2) $44,516.00 $40,000.00 $40,000.00 $40,000.00 $40,000.00 $40,000.00 ------------------------------------------------------------------------------------------------------------------------------------ $531,603.60 $493,239.80 $484,372.00 $423,206.80 $390,263.40 $309,218.40 ------------------------------------------------------------------------------------------------------------------------------------ DEFERRED FEES AT 20% Anderson Kill & Olick, PC $15,218.50 $26,242.00 $23,083.60 $22,249.00 $12,935.50 $12,660.40 Cox & Smith, Inc. $25,019.40 $27,083.70 $36,129.40 $24,301.70 $18,947.35 $20,696.60 Miller Buckfire Lewis Ying & Co., LLC (1) $20,000.00 $20,000.00 $20,000.00 $20,000.00 $20,000.00 $20,000.00 Munsch Hardt Kopf & Harr, PC $3,086.00 $3,024.00 $2,431.00 $2,529.00 $3,057.00 $1,458.00 Skadden, Arps, Slate, Meagher & Flom LLP $57,324.67 $35,835.67 $28,324.67 $26,722.00 $32,626.00 $12,489.60 Ernst & Young LLP (2) $11,129.00 $10,000.00 $10,000.00 $10,000.00 $10,000.00 $10,000.00 ------------------------------------------------------------------------------------------------------------------------------------ $131,777.57 $122,185.37 $119,968.67 $105,801.70 $97,565.85 $77,304.60 ------------------------------------------------------------------------------------------------------------------------------------ EXPENSES AT 100% Anderson Kill & Olick, PC $4,963.08 $12,385.48 $3,833.05 $15,224.58 $10,600.74 $272.76 Cox & Smith, Inc. $15,205.61 $6,837.73 $3,084.84 $7,913.76 $7,114.26 $4,859.71 Miller Buckfire Lewis Ying & Co., LLC (1) $0.00 $0.00 $20,239.64 $8,060.63 $11,957.25 $437.23 Munsch Hardt Kopf & Harr, PC $804.37 $445.16 $2,278.71 $987.86 $576.19 $531.32 Skadden, Arps, Slate, Meagher & Flom LLP $14,632.00 $21,173.00 $14,886.00 $22,301.00 $17,380.00 $11,147.00 Ernst & Young LLP (2) $0.00 $0.00 $8,831.00 $3,177.00 $7,197.00 $82.00 ------------------------------------------------------------------------------------------------------------------------------------ $35,605.06 $40,841.37 $53,153.24 $57,664.83 $54,825.44 $17,330.02 ------------------------------------------------------------------------------------------------------------------------------------ TOTAL PAID (80% FEES + EXPENSES) Anderson Kill & Olick, PC $65,837.08 $117,353.48 $96,167.45 $104,220.58 $62,342.74 $50,914.36 Cox & Smith, Inc. $115,283.21 $115,172.53 $147,602.44 $105,120.56 $82,903.66 $87,646.11 Miller Buckfire Lewis Ying & Co., LLC (1) $80,000.00 $80,000.00 $100,239.64 $88,060.63 $91,957.25 $80,437.23 Munsch Hardt Kopf & Harr, PC $13,148.37 $12,541.16 $12,002.71 $11,103.86 $12,804.19 $6,363.32 Skadden, Arps, Slate, Meagher & Flom LLP $248,424.00 $169,014.00 $132,682.00 $129,189.00 $147,884.00 $61,105.40 Ernst & Young LLP (2) $44,516.00 $40,000.00 $48,831.00 $43,177.00 $47,197.00 $40,082.00 ------------------------------------------------------------------------------------------------------------------------------------ $567,208.66 $534,081.17 $537,525.24 $480,871.63 $445,088.84 $326,548.42 ------------------------------------------------------------------------------------------------------------------------------------ CUMULATIVE PAID (80% FEES + EXPENSES) Anderson Kill & Olick, PC $65,837.08 $183,190.56 $279,358.01 $383,578.59 $445,921.33 $496,835.69 Cox & Smith, Inc. $115,283.21 $230,455.74 $378,058.18 $483,178.74 $566,082.40 $653,728.51 Miller Buckfire Lewis Ying & Co., LLC (1) $80,000.00 $160,000.00 $260,239.64 $348,300.27 $440,257.52 $520,694.75 Munsch Hardt Kopf & Harr, PC $13,148.37 $25,689.53 $37,692.24 $48,796.10 $61,600.29 $67,963.61 Skadden, Arps, Slate, Meagher & Flom LLP $248,424.00 $417,438.00 $550,120.00 $679,309.00 $827,193.00 $888,298.40 Ernst & Young LLP (2) $44,516.00 $84,516.00 $133,347.00 $176,524.00 $223,721.00 $263,803.00 ------------------------------------------------------------------------------------------------------------------------------------ $567,208.66 $1,101,289.83 $1,638,815.07 $2,119,686.70 $2,564,775.54 $2,891,323.96 ------------------------------------------------------------------------------------------------------------------------------------ CUMULATIVE MONTHLY DEFERRED FEES PAID Anderson Kill & Olick, PC $15,218.50 $26,253.05 $23,083.60 22,249.00 12,935.50 12,660.40 Cox & Smith, Inc. $25,019.40 $27,083.70 $36,129.40 24,301.70 18,947.35 20,696.60 Miller Buckfire Lewis Ying & Co., LLC (1) $20,000.00 $20,000.00 $20,000.00 20,000.00 20,000.00 20,000.00 Munsch Hardt Kopf & Harr, PC $3,086.00 $3,024.00 $2,431.00 2,529.00 3,057.00 1,468.00 Skadden, Arps, Slate, Meagher & Flom LLP $57,324.67 $35,835.67 $28,324.67 26,722.00 32,626.00 12,489.60 Ernst & Young LLP (2) $11,129.00 $10,000.00 $10,000.00 10,000.00 10,000.00 10,000.00 ------------------------------------------------------------------------------------------------------------------------------------ $131,777.57 $122,185.37 $119,968.67 105,801.70 97,565.85 77,304.60 ------------------------------------------------------------------------------------------------------------------------------------ CUMULATIVE MONTHLY DEFERRED FEES AT 20% Anderson Kill & Olick, PC $15,218.50 $41,460.50 $64,544.10 $22,249.00 $12,935.50 $12,660.40 Cox & Smith, Inc. $25,019.40 $52,103.10 $98,232.50 $24,301.70 $18,947.35 $20,696.60 Miller Buckfire Lewis Ying & Co., LLC (1) $20,000.00 $40,000.00 $60,000.00 $20,000.00 $20,000.00 $20,000.00 Munsch Hardt Kopf & Harr, PC $3,086.00 $6,110.00 $8,541.00 $2,529.00 $3,057.00 $1,468.00 Skadden, Arps, Slate, Meagher & Flom LLP $57,324.67 $93,160.33 $121,485.00 $26,722.00 $32,626.00 $12,489.60 Ernst & Young LLP (2) $11,129.00 $21,129.00 $31,129.00 $10,000.00 $10,000.00 $10,000.00 ------------------------------------------------------------------------------------------------------------------------------------ $131,777.57 $253,962.93 $373,931.60 $105,801.70 $97,565.85 $77,304.60 ------------------------------------------------------------------------------------------------------------------------------------
(1) Miller Buckfire received $300,000 retainer 1/26/04. $150,000 applied to prepetition fees & expenses - $150,000 applied to post petition final settlement of fees & expenses - current balance of incurred but unpaid post-petition expenses - $9,581.75 - monthly fee $100,000 subject to 80/20 arrangement (2) EYCF fee arrangement - $75,000 first month, $50,000 subsequent months - subject to $1.8 million fee cap - engagement ended 10/10/04 (3) FTI engaged on same terms as EYCF pending court approval effective 10/11/04 (4) Jones Day Nov 04 & Dec 04 figures are estimates Note: This schedule is through the prior month, due to actual invoices typically lagging one month. 19 AVADO BRANDS, INC. 22-Feb-05 ----------------------------------- 80/20 PROFESSIONALS (cont.) -----------------------------------
Services Services Services Services Services for month of for month of for month of for month of for month of Aug-04 Sep-04 Oct-04 Nov-04 Dec-04 Actual Actual Actual Act/Fcst Act/Fcst TOTAL BILLED FEES + EXPENSES Anderson Kill & Olick, PC $71,035.03 $75,486.07 $164,637.66 62,012.39 32,676.95 Cox & Smith, Inc. $109,198.15 $96,400.37 $148,100.82 114,092.42 79,057.87 Miller Buckfire Lewis Ying & Co., LLC (1) $100,420.78 $117,461.20 $101,851.98 101,790.85 102,017.89 Munsch Hardt Kopf & Harr, PC $21,629.16 $8,516.40 $29,527.41 18,470.99 7,401.85 Skadden, Arps, Slate, Meagher & Flom LLP $167,112.00 $175,366.00 $324,234.00 157,248.00 181,821.00 Ernst & Young LLP (2) $54,348.00 $50,000.00 $16,130.00 - - Jones Day (4) $18,970.15 $3,660.00 $7,252.50 6,750.00 6,750.00 FTI (3) - - $33,931.00 51,784.00 50,420.00 ----------------------------------------------------------------------------------------------------------------------------- $542,713.17 $526,890.04 $825,665.37 512,148.65 460,145.56 ----------------------------------------------------------------------------------------------------------------------------- FEES AT 80% Anderson Kill & Olick, PC $49,186.00 $58,142.80 $130,442.40 45,978.60 22,726.00 Cox & Smith, Inc. $80,287.60 $72,851.60 $112,496.00 72,964.00 60,171.20 Miller Buckfire Lewis Ying & Co., LLC (1) $80,000.00 $80,000.00 $80,000.00 80,000.00 80,000.00 Munsch Hardt Kopf & Harr, PC $15,913.60 $6,516.00 $21,454.40 13,104.80 5,620.00 Skadden, Arps, Slate, Meagher & Flom LLP $128,832.80 $133,379.20 $229,997.60 109,652.00 134,824.80 Ernst & Young LLP (2) $40,000.00 $40,000.00 $12,904.00 - - Jones Day (4) $18,333.50 $2,928.00 $5,530.80 5,000.00 5,000.00 FTI (3) - - $27,097.00 40,000.00 40,000.00 ----------------------------------------------------------------------------------------------------------------------------- $412,553.50 $393,817.60 $619,922.20 366,399.40 348,342.00 ----------------------------------------------------------------------------------------------------------------------------- DEFERRED FEES AT 20% Anderson Kill & Olick, PC $12,296.50 $14,535.70 $32,610.60 11,494.65 5,681.50 Cox & Smith, Inc. $20,071.90 $18,212.90 $28,124.00 31,449.60 15,042.80 Miller Buckfire Lewis Ying & Co., LLC (1) $20,000.00 $20,000.00 $20,000.00 20,000.00 20,000.00 Munsch Hardt Kopf & Harr, PC $3,978.30 $1,629.00 $5,363.60 3,276.20 1,405.00 Skadden, Arps, Slate, Meagher & Flom LLP $29,615.20 $33,344.80 $57,499.40 27,413.00 33,706.20 Ernst & Young LLP (2) $10,000.00 $10,000.00 $3,226.00 - - Jones Day (4) - $732.00 $1,382.70 1,250.00 1,250.00 FTI (3) - - $6,774.00 10,000.00 10,000.00 ----------------------------------------------------------------------------------------------------------------------------- $95,961.90 $98,454.40 $154,980.30 104,883.45 87,085.50 ----------------------------------------------------------------------------------------------------------------------------- EXPENSES AT 100% Anderson Kill & Olick, PC $9,552.53 $2,807.57 $1,584.66 4,539.14 4,269.45 Cox & Smith, Inc. $8,838.65 $5,335.87 $7,480.82 9,678.82 3,843.87 Miller Buckfire Lewis Ying & Co., LLC (1) $420.78 $17,461.20 $1,851.98 1,790.85 2,017.89 Munsch Hardt Kopf & Harr, PC $1,737.16 $371.40 $2,709.41 2,089.99 376.85 Skadden, Arps, Slate, Meagher & Flom LLP $8,664.00 $8,642.00 $36,737.00 20,183.00 13,290.00 Ernst & Young LLP (2) $4,348.00 - - - - Jones Day (4) $636.65 - $339.00 500.00 500.00 FTI (3) - - $60.00 1,784.00 420.00 ----------------------------------------------------------------------------------------------------------------------------- $34,197.77 $34,618.04 $50,762.87 40,565.80 24,718.06 ----------------------------------------------------------------------------------------------------------------------------- TOTAL PAID (80% FEES + EXPENSES) Anderson Kill & Olick, PC $58,738.53 $60,950.37 $132,027.06 50,517.74 26,995.45 Cox & Smith, Inc. $89,126.25 $78,187.47 $119,976.82 82,642.82 64,015.07 Miller Buckfire Lewis Ying & Co., LLC (1) $80,420.78 $97,461.20 $81,851.98 81,790.85 82,017.89 Munsch Hardt Kopf & Harr, PC $17,650.76 $6,887.40 $24,163.81 15,194.79 5,996.85 Skadden, Arps, Slate, Meagher & Flom LLP $137,496.80 $142,021.20 $266,734.60 129,835.00 148,114.80 Ernst & Young LLP (2) $44,348.00 $40,000.00 $12,904.00 - - Jones Day (4) $18,970.15 $2,928.00 $5,869.80 5,500.00 5,500.00 FTI (3) - - $27,157.00 41,784.00 40,420.00 ----------------------------------------------------------------------------------------------------------------------------- $446,751.27 $428,435.64 $670,685.07 407,265.20 373,060.06 ----------------------------------------------------------------------------------------------------------------------------- CUMULATIVE PAID (80% FEES + EXPENSES) Anderson Kill & Olick, PC $555,574.22 $616,524.59 $748,551.65 799,069.39 826,064.84 Cox & Smith, Inc. $742,854.76 $821,042.23 $941,019.05 1,023.661.87 1,087,676.94 Miller Buckfire Lewis Ying & Co., LLC (1) $601,115.53 $698,576.73 $780,428.71 862,219.56 944,237.45 Munsch Hardt Kopf & Harr, PC $85,614.37 $92,501.77 $116,665.58 131,860.37 137,857.22 Skadden, Arps, Slate, Meagher & Flom LLP $1,025,765.20 $1,167,816.40 $1,434,551.20 1,564,386.00 1,712,500.80 Ernst & Young LLP (2) $308,151.00 $348,151.00 $361,055.00 361,055.00 361,055.00 Jones Day (4) $18,970.15 $21,898.15 $27,767.95 33,267.95 38,767.95 FTI (3) - - $27,157.00 68,941.00 109,361.00 ----------------------------------------------------------------------------------------------------------------------------- $3,338,075.23 $3,766,510.87 $4,437,626.14 4,844,461.14 5,217,521.20 ----------------------------------------------------------------------------------------------------------------------------- CUMULATIVE MONTHLY DEFERRED FEES PAID Anderson Kill & Olick, PC 12,296.60 - - - - Cox & Smith, Inc. 20,071.00 - - - - Miller Buckfire Lewis Ying & Co., LLC (1) 20,000.00 - - - - Munsch Hardt Kopf & Harr, PC 3,978.40 - - - - Skadden, Arps, Slate, Meagher & Flom LLP 29,615.20 - - - - Ernst & Young LLP (2) 10,000.00 - - - - Jones Day (4) - - - - - FTI (3) - - - - - ----------------------------------------------------------------------------------------------------------------------------- 95,961.90 - - - - ----------------------------------------------------------------------------------------------------------------------------- CUMULATIVE MONTHLY DEFERRED FEES AT 20% Anderson Kill & Olick, PC $12,296.50 $14,535.70 $47,146.30 58,640.95 54,322.45 Cox & Smith, Inc. $20,071.90 $18,212.90 $46,336.90 77,786.50 92,829.30 Miller Buckfire Lewis Ying & Co., LLC (1) $20,000.00 $20,000.00 $40,000.00 60,000.00 80,000.00 Munsch Hardt Kopf & Harr, PC $3,978.40 $1,629.00 $6,992.60 10,268.80 11,673.80 Skadden, Arps, Slate, Meagher & Flom LLP $29,615.20 $33,344.80 $90,844.20 118,257.20 151,963.40 Ernst & Young LLP (2) $10,000.00 $10,000.00 $13,226.00 13,226.00 13,226.00 Jones Day (4) - $732.00 $2,114.70 3,364.70 4,614.70 FTI (3) - - $6,774.00 16,774.00 26,774.00 ----------------------------------------------------------------------------------------------------------------------------- $95,961.90 $98,454.40 $253,434.70 358,318.15 445,403.65 -----------------------------------------------------------------------------------------------------------------------------
(1) Miller Buckfire received $300,000 retainer 1/26/04. $150,000 applied to prepetition fees & expenses - $150,000 applied to post petition final settlement of fees & expenses - current balance of incurred but unpaid post-petition expenses - $9,581.75 - monthly fee $100,000 subject to 80/20 arrangement (2) EYCF fee arrangement - $75,000 first month, $50,000 subsequent months - subject to $1.8 million fee cap - engagement ended 10/10/04 (3) FTI engaged on same terms as EYCF pending court approval effective 10/11/04 (4) Jones Day Nov 04 & Dec 04 figures are estimates Note: This schedule is through the prior month, due to actual invoices typically lagging one month. 20 AVADO BRANDS, INC. 18-Feb-05 ---------------------------------------- AP Services, LLC (Alix Partners) ----------------------------------------
Services Services Services Services Services Services for month of for month of for month of for month of for month of for month of Feb-04 Mar-04 Apr-04 May-04 Jun-04 Jul-04 TOTAL BILLED FEES + EXPENSES AP Services (1) $387,302.10 $560,965.21 $457,323.90 $323,124.11 $378,647.16 $316,775.81 FEES AT 80% AP Services (1) $294,532.20 $350,000.00 $343,900.20 $242,922.60 $253,747.40 $225,240.60 DEFERRED FEES AT 20% AP Services (1) $73,633.05 $160,860.00 $85,975.05 $60,730.65 $63,436.85 $56,310.15 EXPENSES AT 100% AP Services (1) $19,136.85 $50,105.21 $27,448.65 $19,470.86 $61,462.91 $35,225.06 TOTAL PAID (80% FEES + EXPENSES) AP Services ($350,000 monthly cap)(1) $313,669.05 $400,105.21 $371,348.85 $262,393.46 $315,210.31 $260,465.66 CUMULATIVE PAID (80% FEES + EXPENSES) AP Services (1) $313,669.05 $713,774.26 $1,085,123.11 $1,347,516.57 $1,662,726.88 $1,923,192.54 DEFERRED FEES PAID AP Services (1) - - - - - - CUMULATIVE MONTHLY DEFERRED FEES AT 20% AP Services (1) $73,633.05 $234,493.05 $320,468.10 $381,198.75 $444,635.60 $500,945.75
(1) AP Services to receive monthly 80% of its total fees or $350,000, whichever is less, plus 100% of total expenses Note: This schedule is through the prior month, due to actual invoices typically lagging one month. 21 AVADO BRANDS, INC. 18-Feb-05 ---------------------------------------------- AP Services, LLC (Alix Partners) (cont.) ----------------------------------------------
Services Services Services Services Services for month of for month of for month of for month of for month of Aug-04 Sep-04 Oct-04 Nov-04 Dec-04 TOTAL BILLED FEES + EXPENSES AP Services (1) $353,260.67 $296,856.66 $310,014.38 $287,371.31 $219,720.17 FEES AT 80% AP Services (1) $258,573.20 $223,814.60 $226,546.40 $214,141.80 $161,903.20 DEFERRED FEES AT 20% AP Services (1) $64,643.30 $55,953.65 $56,636.60 $53,535.45 $40,475.80 EXPENSES AT 100% AP Services (1) $30,044.17 $17,088.41 $26,831.38 $19,694.06 $17,341.17 TOTAL PAID (80% FEES + EXPENSES) AP Services ($350,000 monthly cap)(1) $288,617.37 $240,903.01 $253,377.78 $233,835.86 $179,244.37 CUMULATIVE PAID (80% FEES + EXPENSES) AP Services (1) $2,211,809.91 $2,452,712.92 $2,706,090.70 $2,939,926.56 $3,119,170.93 DEFERRED FEES PAID AP Services (1) - - - - - CUMULATIVE MONTHLY DEFERRED FEES AT 20% AP Services (1) $565,589.05 $621,542.70 $678,179.30 $731,714.75 $772,190.55
(1) AP Services to receive monthly 80% of its total fees or $350,000, whichever is less, plus 100% of total expenses Note: This schedule is through the prior month, due to actual invoices typically lagging one month. 22 Monthly Operating Reports CASE NAME: Avado Brands, Inc. ACCRUAL BASIS - 7 CASE NUMBER: 04-31555 rwd, 01/05 MONTH: January 2005 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 under the PACA, Beer, Wine & Liquor, Waste Service Providers, Utilities, Employee and Surety Bond Orders. Pre-petition payroll taxes have been paid. 23 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 12/31/04 $ 4,088 $ 2,000,000 Each Policy Period $ 100,000 Company Extension ------------------------------------------------------------------------------------------------------------------------------------ Directors & American 8/01/03 $485,000 $10,000,000 Each Loss, Each Director/Officer $ 500,000 Officers International 12/31/04 $225,000 $ 50,000 Crisis Fund $ 250,000 South Insurance Extension Company ------------------------------------------------------------------------------------------------------------------------------------ Excess Directors Federal 8/01/02 $210,975 $5,000,000 Excess of $10,000,000 & Officers Insurance Co. 12/31/04 $ 97,870 ------------------------------------------------------------------------------------------------------------------------------------ Excess Directors Speciality 8/1/03 $196,000 $5,000,000 Excess of $15,000,000 & Officers Insurance Co. 12/31/04 $ 90,925 ------------------------------------------------------------------------------------------------------------------------------------ Crime Federal 8/01/04 $ 51,070 $5,000,000 Employee Theft $ 200,000 Insurance 8/01/05 $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 8/01/04 $ 5,000 $5,000,000 Kidnap/Ransom and Extortion $ 0 Insurance 8/01/05 $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 8/01/04 $161,500 $5,000,000 Aggregate $1,000,000 Practices Fire Insurance 8/01/05 8/1/2002 Continuity Date Liability Company of Pittsburgh, PA ------------------------------------------------------------------------------------------------------------------------------------
24 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 25 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. 26 (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. 27 (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. 28