-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: webmaster@www.sec.gov Originator-Key-Asymmetric: MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB MIC-Info: RSA-MD5,RSA, IKZiuEcWxHp+fBvjFVxQjhLXYSpYlVbfdvk+OjS+HtGJu0UHaQ4smful9E5ZVu/f 7Ob11WKy05ftUB5cwB6k7Q== 0000950144-00-005559.txt : 20000428 0000950144-00-005559.hdr.sgml : 20000428 ACCESSION NUMBER: 0000950144-00-005559 CONFORMED SUBMISSION TYPE: 8-K PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 20000228 ITEM INFORMATION: FILED AS OF DATE: 20000427 FILER: COMPANY DATA: COMPANY CONFORMED NAME: SERVICE MERCHANDISE CO INC CENTRAL INDEX KEY: 0000089107 STANDARD INDUSTRIAL CLASSIFICATION: RETAIL-MISC GENERAL MERCHANDISE STORES [5399] IRS NUMBER: 620816060 STATE OF INCORPORATION: TN FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 8-K SEC ACT: SEC FILE NUMBER: 001-09223 FILM NUMBER: 610750 BUSINESS ADDRESS: STREET 1: 7100 SERVICE MERCHANDISE DR CITY: BRENTWOOD STATE: TN ZIP: 37027 BUSINESS PHONE: 6156606000 MAIL ADDRESS: STREET 1: PO BOX 24600 CITY: NASHVILLE STATE: TN ZIP: 37202 8-K 1 SERVICE MERCHANDISE COMPANY INC 1 SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM 8-K CURRENT REPORT Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 Date of Report: February 28, 2000 SERVICE MERCHANDISE COMPANY, INC. (Debtor-in-Possession as of March 27, 1999) - -------------------------------------------------------------------------------- (Exact name of registrant as specified in its charter) Tennessee 1-9223 62-0816060 - ------------------------------- ------------------------ ------------------- (State or other jurisdiction (Commission File Number) (I.R.S. Employer) of incorporation) Identification No.) 7100 Service Merchandise Boulevard, Brentwood, TN 37027 - -------------------------------------------------- -------------------- (Address of principal executive offices) (Zip Code) Registrant's telephone number, including area code: (615) 660-6000 Not Applicable - -------------------------------------------------------------------------------- (Former name or former address, if changed since last report) 2 Item 5. Other Events - -------------------------------------------------------------------------------- Service Merchandise Company, Inc. (the "Company") has filed its monthly operating report for the period commencing February 28, 2000 and ending April 2, 2000 (the "Operating Report") with the United States Bankruptcy Court for the Middle District of Tennessee, a copy of which is attached hereto as Exhibit 99, in connection with its voluntary petitions for reorganization under Chapter 11 of title 11 of the United States Bankruptcy Code in Case No. 399-02649. The Company cautions readers not to place undue reliance upon the information contained therein. The Operating Report contains unaudited information, and is in a format, prescribed by the applicable bankruptcy laws. There can be no assurance that the Operating Report is complete. The Operating Report also contains information for periods which may be shorter or otherwise different from those contained in the Company's reports pursuant to the Securities Exchange Act of 1934, as amended (the "Exchange Act"). Such information may not be indicative of the Company's financial condition or operating results for the periods reflected in the Company's financial statements or in its reports pursuant to the Exchange Act and readers are cautioned to refer to the Exchange Act filings. Moreover, the Operating Report and other communications from the Company may include forward-looking statements subject to various assumptions regarding the Company's operating performance that may not be realized and are subject to significant business, economic and competitive uncertainties and contingencies, including those described in this report, many of which are beyond the Company's control. Consequently such matters should not be regarded as a representation or warranty by the Company that such matters will be realized or are indicative of the Company's financial condition or operating results for future periods or the periods covered in the Company's reports pursuant to the Exchange Act. Actual results for such periods may differ materially from the information contained in the Operating Report and the Company undertakes no obligation to update or revise such Operating Report. The Operating Report includes a Rolling Revised Cash Flow Forecast which is a forward-looking statement subject to various assumptions regarding the Company's business, operating performance and other factors including revenues, expenses, asset dispositions, trade terms and capital expenditures, and various risks and uncertainties including those set forth below. This information should be read in conjunction with the Company's reports filed pursuant to the Exchange Act. Readers are cautioned that such information is being reported publicly because it is being distributed to a large number of the Company's vendors for purposes of their credit analyses. The Company undertakes no obligation to update such information or to disclose similar information in future Operating Reports. The Rolling Revised Cash Flow Forecast was not examined, reviewed or compiled by the Company's independent public accountants. The Rolling Revised Cash Flow Forecast is subject to future adjustments, if any, that could materially affect such information. 2 3 The Company's liquidity, capital resources and results of operations are subject to a number of risks and uncertainties, including, but not limited to, the following: approval of plans and activities by the Bankruptcy Court, including the Company's proposed strategic real estate initiatives; the ability of the Company to continue as a going concern; the ability of the Company to operate pursuant to the terms of the present DIP Facility and to close and operate pursuant to the new DIP to Exit Facility; the ability of the Company to conduct successful clearance sales in connection with the 2000 Business Plan; the ability of the Company to sublease successfully portions of its real estate in connection with the 2000 Business Plan; the ability of the Company to complete its store refurbishment program within cost and time expectations; the successful implementation of the consolidation of its distribution centers; the ability of the Company to enter into satisfactory arrangements with third parties with respect to real estate and Internet-related strategies; risks associated with third parties seeking and obtaining Court action to terminate or shorten the exclusivity period; the time for the Company to accept or reject executory contracts including its store leases, and for appointment of a Chapter 11 operating trustee or to convert the Company's reorganization cases to liquidation cases; the ability of the Company to operate successfully under a Chapter 11 proceeding, achieve planned sales and margin, and create and have approved a plan of reorganization in the Chapter 11 cases; potential adverse developments with respect to the Company's liquidity or results of operations; the ability of the Company to obtain shipments, negotiate and maintain terms with vendors and service providers for current orders; the ability to fund and execute a Year 2000 Business Plan; the ability of the Company to achieve cost savings; the ability of the Company to attract, retain and compensate key executives and associates, competitive pressures from other retailers, including specialty retailers and discount stores, which may affect the nature and viability of the Company's business strategy; trends in the economy as a whole which may affect consumer confidence and consumer demand for the types of goods sold by the Company; the seasonal nature of the Company's business and the ability of the Company to predict consumer demand as a whole, as well as demand for specific goods; the ability of the Company to attract and retain customers; potential adverse publicity; real estate occupancy and development costs, including the substantial fixed investment costs associated with opening, maintaining or closing a Company store; uncertainties with respect to continued public trading in the Company's securities; the ability to effect conversions to new technological systems; and the ability to develop, prosecute, confirm and consummate one or more plans of reorganization with respect to its Chapter 11 cases. 3 4 SIGNATURES Pursuant to the requirements of Section 12 of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized. SERVICE MERCHANDISE COMPANY, INC. Date: April 27, 2000 By: /s/ C. Steven Moore --------------------------------------------- C. Steven Moore Senior Vice President, Chief Administrative Officer, Secretary and General Counsel 4 5 EXHIBIT INDEX
No. Exhibit - --------- ------------------------------------------------------------- 99 Operating Report for the period ending April 2, 2000
EX-99 2 OPERATING REPORT 1 EXHIBIT 99 UNITED STATES BANKRUPTCY COURT MIDDLE DISTRICT OF TENNESSEE In re: Case No.: 399-02649 ----------------- SERVICE MERCHANDISE COMPANY, INC. THROUGH 399-02680 --------------------------------- ----------------- Judge: PAINE ----------------- Chapter 11 Debtor(s) MONTHLY OPERATING REPORT FOR PERIOD ENDING April 2, 2000 ------------- COMES NOW, SERVICE MERCHANDISE COMPANY, INC. -------------------------------- Debtor-In-Possession, and hereby submits its Monthly Operating Report for the period commencing February 28, 2000 and ending April 2, 2000 as shown by the report and exhibits consisting of 16 pages and containing the following as indicated: [X] Monthly Reporting Questionnaire (Attachment 1) [X] Comparative Balance Sheets (Forms OPR-1 & OPR-2) [N/A] Summary of Accounts Receivable (Form OPR-3) [X] Schedule of Postpetition Liabilities (Form OPR-4) [X] Statement of Income (Loss) (Form OPR-5) I declare under penalty of perjury that this report and all the attachments are true and correct to the best of my knowledge and belief. I also hereby certify that the original Monthly Operating Report was filed with the Bankruptcy Court Clerk and a copy delivered to the U.S. Trustee. Date: 4/24/00 DEBTOR - IN - POSSESSION ----------- By: /s/ Tom Garrett ------------------------------------------- Name and Title: TOM GARRETT, ------------------------------ SENIOR VICE PRESIDENT & CFO ------------------------------ Address: 7100 SERVICE MERCHANDISE DRIVE ------------------------------ BRENTWOOD, TENNESSEE 37027 ------------------------------ Telephone No: 660-3477 ------------------------------ Note: Report subject to further verification and account reconciliation procedures 2 CHAPTER 11 MONTHLY OPERATING REPORT MONTHLY REPORTING QUESTIONNAIRE CASE NAME: SERVICE MERCHANDISE COMPANY, INC. et. al. CASE NUMBER: 399-02649 THROUGH 399-02680 PERIOD: FEBRUARY 28, 2000 THROUGH APRIL 2, 2000 1. Payroll
WAGES TAXES OFFICERS TITLE GROSS NET DUE PAID - ----------------------------------------------------------------------------------------------------------------------------------- SAM CUSANO CHIEF EXECUTIVE OFFICER 70,154.77 45,286.78 4,515.26 19,951.13 STEVE MOORE SENIOR VICE PRESIDENT, CHIEF ADMINISTRATIVE OFFICER, GENERAL COUNSEL AND SECRETARY 189,358.63 132,651.85 2,198.69 54,535.64 TOM GARRETT SENIOR VICE PRESIDENT AND CHIEF FINANCIAL OFFICER 161,242.25 114,237.46 1,648.99 45,004.55 GARY SEASE SENIOR VICE PRESIDENT, LOGISTICS 163,073.44 113,323.81 2,054.11 46,736.89 CHARLES SEPTER PRESIDENT AND CHIEF OPERATING OFFICER 218,178.72 150,292.27 3,417.43 63,487.27 KENNETH BRAME SENIOR VICE PRESIDENT, INFORMATION SERVICES AND CHIEF INFORMATION OFFICER 1,084,980.75 (a) 765,110.93 271,258.58 48,611.24 ROBERT J. PINDRED VICE PRESIDENT AND TREASURER 63,040.40 41,976.48 507.37 16,535.65 JOE M. ELLIOTT VICE PRESIDENT, PROPERTY ADMINISTRATION 45,549.40 28,454.23 626.85 12,905.03 ERIC KOVATS VICE PRESIDENT, STORES 139,096.66 93,490.95 1,517.80 49,108.28 KARREN PRASIFKA ASSISTANT GENERAL COUNSEL VICE PRESIDENT 76,570.02 53,651.88 1,275.28 21,534.46 BILLY STEWART ASSISTANT TAX VICE PRESIDENT, TAX 29,645.69 18,709.13 332.66 8,609.07 KENNETH A CONWAY VICE PRESIDENT AND CONTROLLER 72,052.27 51,516.52 656.06 19,460.69
Note: The above amounts reflect bonuses paid in March, 2000. (a) Includes $921,082 related to severance pay. 3 CHAPTER 11 MONTHLY OPERATING REPORT MONTHLY REPORTING QUESTIONNAIRE CASE NAME: SERVICE MERCHANDISE COMPANY, INC. et. al. CASE NUMBER: 399-02649 THROUGH 399-02680 PERIOD: FEBRUARY 28, 2000 THROUGH APRIL 2, 2000 2. INSURANCE
COVERAGE POLICY EXPIRATION PREMIUM DATE COVERAGE TYPE NAME OF CARRIER AMOUNT NUMBER DATE AMOUNT PAID THRU - ------------------------------------------------------------------------------------------------------------------------------------ Property Fireman's Fund Insurance Co $5 Million CCIPWI2011 12/31/00 $1,441,249 12/31/00 Royal $5 Million RHD314289 12/31/00 $ 100,000 12/31/00 Westchester Fire $15 Million IXA394310 12/31/00 $ 50,100 12/31/00 Allianz Insurance Co $12 Million CLP1034720 12/31/00 $ 20,040 12/31/00 TIG Insurance Co $13 Million XPT38797667 12/31/00 $ 32,500 12/31/00 Westchester Fire $20 Million IXA394311 12/31/00 $ 10,020 12/31/00 Allianz Insurance Co $30 Million CLP1034720 12/31/00 $ 15,030 12/31/00 Allianz Insurance Co $25 Million CLP1034720 12/31/00 $ 6,680 12/31/00 Boiler & Machinery Hartford Steam Boiler $10 Million BMTBD 05/01/00 $ 11,900 05/01/00 Transit Security Ins Co of Hartford $1 Million CCIMG72820 05/01/00 $ 10,000 05/01/00 Ocean Cargo Phoenix Assurance Co of NY $10 Million CR37211 05/01/00 $ 40,000 05/01/00 Special Crime Reliance Insurance Co $25 Million NFK1951937 05/01/02 $ 13,458 05/01/02 Crime National Union Fire Ins Co $10 Million 858-O797 03/01/01 $ 56,505 03/01/01 Fiduciary National Union Fire Ins Co $10 Million 267-81-30 03/01/01 $ 19,140 03/01/01 Employment Practices Liability Chubb Insurance Co $10 Million 81278901A 03/01/01 $ 8,992 04/01/00 Royal Insurance Co $10 Million PSFOOOO10 03/01/01 $ 3,749 04/01/00 Directors & Officers Continental Insurance Co $10 Million 300714943 03/01/01 $ 453,500 03/01/01 Chubb Insurance Co $10 million 81278902-A 03/01/01 $ 266,666 03/01/01 Royal Insurance Co $10 Million PSFOO0009 03/01/01 $ 133,000 03/01/01 Umbrella Federal Insurance Co $50 Million 79763295 12/31/01 $ 63,357 12/31/00 Excess Liability American Guarantee & Liab $50 million AEC287610700 12/31/00 $ 25,000 12/31/00 International Ace American Ins Co $1 Million PHF051491 12/31/00 $ 2,500 12/31/00 Punitive Damages Chubb Atlantic Indemnity $50 Million (00) 3310-05-98 12/31/00 $ 17,160 12/31/00 Punitive Damages - Excess Zurich International Bermuda $50 Million ZTEB-091 PD) 12/31/00 $ 5,000 12/31/00 General Liability Ace American Ins Co $5 Million XSLG19903254 12/31/00 $ 11,032 03/31/00 Workers' Compensation Pacific Employers Ins Co Statutory WLRC42662112 12/31/00 $ 19,978 03/31/00 WC Excess Ace American Ins Co Statutory XWCO11950 12/31/00 $ 1,601 03/31/00 WC Contractual Indemnity Illinois Union Insurance Co Statutory CTPG19903461 12/31/00 $ 2,083 03/31/00 WC Nevada Ace American Ins Co Statutory NWCC42662173 12/31/00 $ 1,737 03/31/00 Auto Pacific Employers Ins Co $1 Million ISAH07571008 12/31/00 $ 2,083 03/31/00
4 CHAPTER 11 MONTHLY OPERATING REPORT MONTHLY REPORTING QUESTIONNAIRE CASE NAME: SERVICE MERCHANDISE COMPANY, INC. et. al. CASE NUMBER: 399-02649 THROUGH 399-02680 PERIOD: FEBRUARY 28, 2000 THROUGH APRIL 2, 2000 3. BANK ACCOUNTS TOTAL CASH AND CASH EQUIVALENTS CASH IN STORES AND HOME OFFICE HOME OFFICE $ 11,250 RETAIL SAFE FUNDS 1,948,492 CORPORATE ACCOUNTS 3,274,896 STORE DEPOSITORY ACCOUNTS FIRST TENNESSEE 868,702 FIRSTAR 34,406 SOCIETY NATIONAL BANK 423,233 BANK OF BOSTON 765,940 BANK OF BOSTON CONNECTICUT 228,816 MERCANTILE BANK 57,322 FIRST UNION 3,690,784 HARRIS TRUST 1,060,990 BANK ONE LOUISIANA 359,146 ABN - AMRO BANK 285,449 COMERICA BANK 207,797 AM SOUTH 190,150 BANK OF AMERICA CALIFORNIA 283,876 FIRST AMERICAN NATIONAL BANK 182,573 HERITAGE BANK OF NEVADA 775 BANK OF OKLAHOMA 188,428 CHASE BANK OF TEXAS 835,073 HIBERNIA 49,636 SINGLE STORE DEPOSITORY ACCOUNTS 364,072 FIRST NATIONAL BANK OF MARYLAND 4,300 WELLS FARGO BANK 80,057 NATIONSBANK 233,991 BANK ONE, IN 183,477 PNC BANK 758,962 BANK ONE, TEXAS 40,450 CREDIT CARD CASH ACCOUNTS (SALES PROCESSED BY CREDIT CARD COMPANY) 12,069,253 OTHER DEPOSITORY ACCOUNTS SERVICE MERCHANDISE - MUSCULAR DYSTROPHY ASSOC. 38,379 OTHER CASH ACCOUNTS 792,169 ----------- TOTAL CASH PER GENERAL LEDGER $29,512,842 ===========
5 CHAPTER 11 MONTHLY OPERATING REPORT MONTHLY REPORTING QUESTIONNAIRE CASE NAME: SERVICE MERCHANDISE COMPANY, INC. et. al. CASE NUMBER: 399-02649 THROUGH 399-02680 PERIOD: FEBRUARY 28, 2000 THROUGH APRIL 2, 2000 RECEIPTS AND DISBURSEMENTS (DOLLARS IN THOUSANDS)
ACTUAL ACTUAL ACTUAL ACTUAL ACTUAL TOTAL Monday 02/28/00 03/06/00 03/13/00 03/20/00 03/27/00 02/28/00 Sunday 03/05/00 03/12/00 03/19/00 03/26/00 04/02/00 04/02/00 --------- -------- -------- -------- -------- -------- Receipts: Sales Receipts $29,533 $28,997 $26,796 $29,438 $28,718 $143,482 Miscellaneous Receipts -- 819 -- 9 3,164 3,992 ------- ------- ------- ------- ------- -------- Total Available collections 29,533 29,816 26,796 29,447 31,882 147,474 Disbursements: Merchandise disbursements 20,128 8,034 13,656 15,511 15,750 73,079 Non-merchandise disbursements 14,858 16,044 13,822 16,589 23,926 85,239 ------- ------- ------- ------- ------- -------- Total Disbursements: 34,986 24,078 27,478 32,100 39,676 158,318 ------- -------- -------- -------- -------- -------- Net Receipts/(Disbursements) $(5,453) $ 5,738 $ (682) $(2,653) $(7,794) $(10,844) ======= ======= ======= ======= ======= ========
6 CHAPTER 11 MONTHLY OPERATING REPORT MONTHLY REPORTING QUESTIONNAIRE CASE NAME: SERVICE MERCHANDISE COMPANY, INC. et. al. CASE NUMBER: 399-02649 THROUGH 399-02680 PERIOD: FEBRUARY 28, 2000 THROUGH APRIL 2, 2000 ROLLING REVISED CASH FLOW FORECAST (DOLLARS IN THOUSANDS)
Actual Forecast Forecast Forecast 04/09/00 04/30/00 05/28/00 07/02/00 --------- -------- -------- -------- Ending Total Revolver Balance $104,063 $177,994 $141,835 $ 97,184 Term Loan 99,000 60,000 60,000 60,000 Standby Letters of Credit 27,056 44,663 38,737 32,975 Trade Letters of Credit 20,899 1,830 9,999 28,224 -------- -------- -------- ------- Total Extensions of Credit 251,018 284,487 250,571 218,383 Borrowing Base 510,118 508,593 480,246 408,377 -------- -------- -------- -------- Availability $259,100 $224,106 $229,675 $189,994 ======== ======== ======== ========
7 CHAPTER II MONTHLY OPERATING REPORT MONTHLY REPORTING QUESTIONNAIRE CASE NAME: SERVICE MERCHANDISE COMPANY, INC. et. al. CASE NUMBER. 399-02649 THROUGH 399-02680 PERIOD: FEBRUARY 28, 2000 THROUGH APRIL 2, 2000 4. Payments to Professionals: February 28, 2000 through April 2, 2000
Vendor # Vendor Name Check Amt. Check Date Check # - -------------------------------------------------------------------------------------------------------------------- 57117 Deloitte & Touche $124,856.00 02/28/00 30039177 57117 Deloitte & Touche $37,733.96 02/28/00 30039178 86237 Brusniak, Clement, Harrison & McCool, PC, Inc. $1,382.58 03/03/00 30039665 71403 Seyfarth, Shaw, Fairweather & Geraldson $6,874.52 03/06/00 30039788 98378 Skadden, Arps, Slate, Meagher & Flom $274,072.00 03/06/00 B0012100 100906 Peter J. Solomon $78,750.00 03/06/00 B0021195 71217 Bass Berry & Sims $51,959.50 03/06/00 B0021198 79108 Ernst & Young $60,315.00 03/06/00 B0021199 99104 Jay Alix & Associates $105,708.00 03/06/00 B0021201 99391 Otterbourg, Steindler, Houston, Rosen, PC $91,746.36 03/06/00 B0021202 99454 Harwell, Howard, Hyne, Gabbert, & Manner, PC, Inc. $18,505.11 03/06/00 B0021203 57117 Deloitte & Touche $124,856.00 03/07/00 30039843 57117 Deloitte & Touche $30,821.03 03/07100 30039844 99329 Aegis Property Tax Specialists $10,312.50 03/10/00 30040541 99329 Aegis Property Tax Specialists $817.77 03/10/00 30040542 99329 Aegis Property Tax Specialists $8,647.62 03/13/00 30040728 50995 Brann & Isaacson $2,933.40 03/17/00 30041417 57117 Deloitte & Touche $178,309.99 03/27/00 30042311 94414 Keen Realty Consultants, Inc. $5,166.00 03/27/00 30042320 99444 Sitrick & Company, Inc. $89,984.89 03/27/00 B0021359 63078 Weil, Gotshak & Manges $21,181.67 03/27/00 B0021360 98378 Skadden, Arps, Slate, Meagher & Flom $844,728.00 03/27/00 B0021362 79108 Ernst & Young $19,555.00 03/27/00 B0021363 99104 Jay Alix & Associates $180,681.31 03/27/00 B0021365 99391 Otterbourg Steindler, Houston, Rosen, PC $179,158.86 03/27/00 B0021366 99454 Harwell, Howard, Hyne, Gabbert, & Manner, PC, Inc. $44,808.43 03/27/00 B0021367 71217 Bass Berry & Sims $147,560.41 03/27/00 B0021368 100906 Peter J. Solomon $121,093.91 03/27/00 B0021371 99459 Robert L. Berger $35,364.51 03/31/00 B0021435 101606 Service Real Estate Venture $150,000.00 03/02/00 B0021180 101606 Service Real Estate Venture $33,529.27 03/17/00 B0021318 101606 Service Real Estate Venture $150,000.00 03/31/00 B0021445 101625 DG Hart Associates, Inc. $96,780.44 03/27/00 B0021369 101625 DG Hart Associates, Inc. $165,208.86 03/27/00 B0021370 101232 E & Y Restructuring $46,038.00 03/06/00 B0021196 101232 E & Y Restructuring $118,786.00 03/27/00 B0021364 **Payments issued to E & Y Restructuring in a prior period that were inadvertently not reported** 101232 E & Y Restructuring $139,120.00 01/28/00 B0020885 101232 E & Y Restructuring $135,047.00 02/25/00 B0021130
8 SERVICE MERCHANDISE COMPANY, INC. AND SUBSIDIARIES CONSOLIDATED BALANCE SHEETS (UNAUDITED) (DEBTOR-IN-POSSESSION) (IN THOUSANDS)
APRIL 2, FEBRUARY 27, 2000 2000 ---------- ----------- ASSETS Current Assets: Cash and cash equivalents $ 29,513 $ 38,010 Accounts receivable 6,135 7,028 Inventories 644,368 662,722 Prepaid expenses and other assets 24,174 24,851 ---------- ---------- TOTAL CURRENT ASSETS 704,190 732,611 ---------- ---------- PROPERTY AND EQUIPMENT Owned assets, net of accumulated depreciation 346,340 348,136 Capitalized leases, net of accumulated amortization 14,200 14,464 ---------- ---------- TOTAL PROPERTY AND EQUIPMENT 360,540 362,600 ---------- ---------- Other assets and deferred charges 45,337 44,937 ---------- ---------- TOTAL ASSETS $1,110,066 $1,140,148 ========== ========== LIABILITIES AND SHAREHOLDERS' (DEFICIT) EQUITY Liabilities Not Subject To Compromise Current Liabilities: Notes payable to banks $ 97,146 $ 86,232 Accounts payable 60,382 62,075 Accrued expenses 138,243 159,570 State & local sales tax 12,672 13,319 Current maturities of long-term debt 1,000 1,000 Current maturities capitalized leases 118 85 ---------- ---------- TOTAL CURRENT LIABILITIES 309,561 322,281 Long-Term Liabilities: Long-term debt 98,250 98,250 Capitalized lease obligations 2,467 2,474 Liabilities Subject To Compromise: Accrued restructuring costs 44,604 45,495 Capitalized lease obligations 26,405 27,305 Long-term debt 426,844 428,232 Accounts payable 192,829 191,673 Accrued expenses 64,562 60,284 ----------- ----------- Total Liabilities Subject To Compromise 755,244 752,990 TOTAL LIABILITIES 1,165,521 1,175,995 ----------- ----------- COMMITMENTS AND CONTINGENCIES SHAREHOLDERS' (DEFICIT) EQUITY Common stock 49,989 49,989 Additional paid-in-capital 6,288 6,288 Deferred compensation (565) (587) Accumulated other comprehensive loss -- -- Retained (deficit) earnings (111,167) (91,539) ----------- ----------- TOTAL SHAREHOLDERS' (DEFICIT) EQUITY (55,455) (35,848) TOTAL LIABILITIES AND SHAREHOLDERS' (DEFICIT) EQUITY $ 1,110,066 $ 1,140,148 =========== ===========
9 CHAPTER 11 MONTHLY OPERATING REPORT CASE NAME: SERVICE MERCHANDISE COMPANY, INC. et al. CASE NUMBER: 399-02649 THROUGH 399-02680 PERIOD: FEBRUARY 28, 2000 THROUGH APRIL 2, 2000 SUMMARY OF ACCOUNTS RECEIVABLE Month Ended: 04/02/00 FORM OPR-3 NOT APPLICABLE 10 CHAPTER 11 MONTHLY OPERATING REPORT MONTHLY REPORTING QUESTIONNAIRE CASE NAME: SERVICE MERCHANDISE COMPANY, INC. et. al. CASE NUMBER: 399-02649 THROUGH 399-02680 PERIOD: FEBRUARY 27, 2000 THROUGH APRIL 2, 2000 SCHEDULE OF POST PETITION LIABILITIES-ACCOUNTS PAYABLE Month Ended: 04/02/2000 FORM OPR-4
Total Current --------- -------- Trade Accounts Payable (Merchandise) $ 60,382 $ 60,382 Total Current --------- -------- Expense & other payables $ 138,243 $138,243
11 CHAPTER 11 MONTHLY OPERATING REPORT MONTHLY REPORTING QUESTIONNAIRE CASE NAME: SERVICE MERCHANDISE COMPANY, INC. et. al. CASE NUMBER: 399-02649 THROUGH 399-02680 PERIOD: FEBRUARY 28, 2000 THOUGH APRIL 2, 2000 SCHEDULE OF POST PETITION LIABILITIES FORM OPR-4
Date Date Total 0-30 TAXES PAYABLE Incurred Due Due Days -------- ------- ----------- ----------- Federal income tax ** Various Various $ 7,811,842 $ 7,811,842 State income tax Various Various (9,570) (9,570) ------------ ------------ SUBTOTAL 7,802,272 7,802,272 ------------ ------------ Sales/use tax SUBTOTAL * Various Various 12,672,367 12,672,367 ------------ ------------ Personal property tax * Various Various 1,952,001 1,952,001 Real estate taxes * Various Various 8,649,565 8,649,565 Inventory taxes * Various Various 0 0 Gross receipts/bus. licenses * Various Various (1,479) (1,479) Franchise taxes * Various Various 491,835 491,835 ------------ ------------ SUBTOTAL 11,091,922 11,091,922 ------------ ------------ ------------ ------------ TOTAL TAXES PAYABLE $ 31,566,561 $ 31,566,561 ============ ============
* liability included in accrued expenses on OPR-2 ** tax reserve 12 CHAPTER 11 MONTHLY OPERATING REPORT MONTHLY REPORTING QUESTIONNAIRE CASE NAME: SERVICE MERCHANDISE COMPANY, INC. et. al. CASE NUMBER: 399-02649 THROUGH 399-02680 PERIOD: FEBRUARY 28, 2000 THROUGH APRIL 2, 2000 SCHEDULE OF POST PETITION LIABILITIES FORM OPR-4
(DOLLARS IN THOUSANDS) DATE TOTAL DUE INCURRED DATE DUE (4/2/00 BALANCE) POST PETITION SECURED DEBT ------------------------------------------- Revolver Borrowings 03/27/99 06/30/01 $ 97,146 Facility Standby Letters of Credit 03/27/99 06/30/01 27,056 Facility Trade Letters of Credit 03/27/99 06/30/01 22,408 Term Loans 03/27/99 06/30/01 99,250 -------- TOTAL EXTENSIONS OF CREDIT $245,860 ======== ACCRUED INTEREST PAYABLE $ 1,007 ========
13 SERVICE MERCHANDISE COMPANY, INC. AND SUBSIDIARIES Consolidated Statements of Operations (Unaudited) (Debtor - in - Possession) (In thousands)
ACTIVITY FEBRUARY 27, 2000 THROUGH APRIL 2, 2000 ----------------- Net Sales $ 128,556 Costs of merchandise sold and buying and occupancy expense 99,293 --------- Gross margin after cost of merchandise sold and buying and occupancy expenses 29,263 Selling, General and Administrative Expenses: Net Employment Expense 25,675 Net Advertising 4,696 Banking and Other Fees 1,719 Real Estate and Other Taxes 2,098 Supplies 1,235 Communication and Equipment 464 Travel 650 UCC and Other Services (899) Legal and Professional 426 Sales and Shipping 85 Insurance 194 Miscellaneous (38) Credit Card Services (30) --------- Total Selling, General and Administrative Expenses 36,277 Other expense/(income), net (10,818) Restructuring charge (credit) (836) Depreciation and amortization 3,831 --------- Earnings (loss) before interest, reorganization items, and income tax 809 Interest expense - debt 3,887 Interest expense - capitalized leases 290 --------- Earnings (loss) before reorganization items, and income tax (3,368) Reorganization Items: Severance 9,423 Legal and Professional 2,899 Miscellaneous fees 166 Close Store Charges 3,774 --------- Total Reorganization Items 16,262 Earnings (loss) before income tax (19,630) Income tax benefit -- Cumulative Effect of Change in Accounting Principles -- --------- Net earnings (loss) $ (19,630) =========
-----END PRIVACY-ENHANCED MESSAGE-----