-----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, E5dc/kg8arht5JjElbbkcjTDht/VDMV+Cqw+A6hFpB2izFWySXmrPYD43PZnsKbO BupcjXoZPVqfGGn73GqYKQ== /in/edgar/work/0000950144-00-014492/0000950144-00-014492.txt : 20001130 0000950144-00-014492.hdr.sgml : 20001130 ACCESSION NUMBER: 0000950144-00-014492 CONFORMED SUBMISSION TYPE: 8-K PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 20001002 ITEM INFORMATION: FILED AS OF DATE: 20001129 FILER: COMPANY DATA: COMPANY CONFORMED NAME: SERVICE MERCHANDISE CO INC CENTRAL INDEX KEY: 0000089107 STANDARD INDUSTRIAL CLASSIFICATION: [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: 779721 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 g65726e8-k.txt 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: October 2, 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 October 2, 2000 and ending October 29, 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: the ability of the Company to continue as a going concern; the ability of the Company to operate pursuant to the terms of the DIP to Exit Facility; 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 negotiate non-disturbance agreements with its landlords; the ability of the Company to complete its store refurbishment program within cost, time and size expectations; the successful implementation of the consolidation of its distribution centers; the ability of the Company to operate successfully under a Chapter 11 proceeding, achieve planned sales and margin, and create and have approved a reorganization plan in the Chapter 11 Cases; potential adverse developments with respect to the Company's liquidity or results of operations; 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 conduct successful clearance sales in connection with the 2000 Business Plan; 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 trustee or to convert the Company's reorganization cases to liquidations cases; 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 the 2000 Business Plan; the ability of the Company to achieve cost-savings; the ability of the Company to enter into satisfactory arrangements with third parties with respect to real estate and Internet related strategies; the ability of the Company to attract, retain and compensate key executives and associates; 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 the 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: November 28, 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 October 29, 2000
EX-99 2 g65726ex99.txt OPERATING REPORT FOR THE PERIOD ENDING 10/29/00 1 Exhibit 99 UNITED STATES BANKRUPTCY COURT MIDDLE DISTRICT OF TENNESSEE In re: Case No.: 399-02649 THROUGH 399-02680 ---------------------------- SERVICE MERCHANDISE COMPANY, INC. --------------------------------- Judge: PAINE ---------------------------- Chapter 11 Debtor(s) MONTHLY OPERATING REPORT FOR PERIOD ENDING October 29, 2000 -------------------- COMES NOW, SERVICE MERCHANDISE COMPANY, INC. ------------------------------------------------ Debtor-In-Possession, and hereby submits its Monthly Operating Report for the period commencing October 2, 2000 and ending October 29, 2000 as shown by the report and exhibits consisting of 15 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: 11/17/00 DEBTOR - IN - POSSESSION -------------- By: /s/ KENNETH A. CONWAY ----------------------------------- Name and Title: KENNETH A. CONWAY, VICE PRESIDENT AND CONTROLLER --------------------------------- Address: 7100 SERVICE MERCHANDISE DRIVE --------------------------------- BRENTWOOD, TENNESSEE 37027 --------------------------------- Telephone No: (615) 660-3340 --------------------------------- Note: Report subject to further verification and account reconciliation procedures Page 1 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: OCTOBER 2, 2000 THROUGH OCTOBER 29, 2000 1. Payroll
WAGES TAXES OFFICERS TITLE GROSS NET DUE PAID - ----------------------------------------------------------------------------------------------------------------------------------- SAM CUSANO CHIEF EXECUTIVE OFFICER 50,188.10 24,037.33 6,500.54 19,269.97 C. STEVEN MOORE SENIOR VICE PRESIDENT, CHIEF ADMINISTRATIVE OFFICER, GENERAL COUNSEL AND SECRETARY 27,752.86 18,603.87 2,185.87 6,712.01 THOMAS L. GARRETT, JR. SENIOR VICE PRESIDENT AND CHIEF FINANCIAL OFFICER 1,059,503.86 747,479.40 - 312,023.86 CHARLES K. SEPTER PRESIDENT AND CHIEF OPERATING OFFICER 39,229.81 24,680.08 3,595.07 10,056.61 ROBERT J. PINDRED VICE PRESIDENT AND TREASURER 11,558.88 6,984.33 1,265.94 3,127.93 JOE M. ELLIOTT VICE PRESIDENT, PROPERTY ADMINISTRATION 11,597.13 8,274.93 678.42 1,978.17 KARREN PRASIFKA ASSISTANT GENERAL COUNSEL VICE PRESIDENT 14,665.05 9,919.37 1,169.98 3,454.17 BILLY STEWART ASSISTANT VICE PRESIDENT, TAX 7,706.27 5,811.76 310.71 919.81 KENNETH A. CONWAY VICE PRESIDENT AND CONTROLLER 12,335.22 8,390.55 544.74 1,491.52 ERIC A. KOVATS SENIOR VICE PRESIDENT, STORES 22,000.46 15,116.87 1,536.50 4,751.38 ROSE C. SEPTER SENIOR VICE PRESIDENT, JEWELRY MERCHANDISING 22,502.81 15,422.49 1,647.15 5,317.02 JERRY E. FOREMAN SENIOR VICE PRESIDENT, MERCHANDISING 25,861.43 14,371.92 5,022.83 6,183.92
THOMAS L. GARRETT, JR. received severance in the amount of $1,000,441.28 and a retention payment in the amount of $59,062.58 Page 2 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: October 2, 2000 THROUGH October 29, 2000 2. INSURANCE
COVERAGE POLICY EXPIRATION PREMIUM DATE COVERAGE TYPE NAME OF CARRIER AMOUNT NUMBER DATE AMOUNT PAID THROUGH - ----------------------------------------------------------------------------------------------------------------------------------- Property Fireman's Fund Insurance Co $5 Million CCIPW12011 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 1XA394310 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 1XA394311 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 4914539 12/31/00 $8,383 12/31/00 Transit Fireman's Fund Insurance Co $1 Million CCIMG72820 12/31/00 $8,525 12/31/00 Ocean Cargo Fireman's Fund Insurance Co $10 Million CR37211 12/31/00 $25,000 12/31/00 Special Crime Reliance Insurance Co $25 Million NFK1951937 05/01/02 $13,458 05/01/02 Crime National Union Fire Ins Co $10 Million 858-0797 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 $130,845 03/01/01 Royal Insurance Co $10 Million PSF000010 03/01/01 $56,364 03/01/01 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 PSF000009 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 ZGEB-091 PD 12/31/00 $5,000 12/31/00 General Liability Ace American Ins Co $5 Million XSLG19903254 12/31/00 $11,032 12/31/00 Workers' Compensation Pacific Employers Ins Co Statutory WLRC42662112 12/31/00 $19,978 12/31/00 WC Excess Ace American Ins Co Statutory XWC011950 12/31/00 $1,601 12/31/00 WC Contractual Indemnity Illinois Union Insurance Co Statutory CTPG19903461 12/31/00 $2,083 12/31/00 WC Nevada Ace American Ins Co Statutory NWCC42662173 12/31/00 $1,737 12/31/00 Auto Pacific Employers Ins Co $1 Million ISAH07571008 12/31/00 $2,083 12/31/00
Page 3 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: OCTOBER 2, 2000 THROUGH OCTOBER 29, 2000 3. BANK ACCOUNTS TOTAL CASH AND CASH EQUIVALENTS CASH IN STORES AND HOME OFFICE - ------------------------------ HOME OFFICE $ 10,750 RETAIL SAFE FUNDS 1,932,326 CORPORATE ACCOUNTS 2,198,991 - ------------------ --------- STORE DEPOSITORY ACCOUNTS - ------------------------- FIRST TENNESSEE 590,536 KEY NATIONAL BANK 309,304 BANK OF BOSTON 218,120 BANK OF BOSTON CONNECTICUT 187,166 FIRST UNION 2,073,521 BANK ONE LOUISIANA 322,426 ABN - AMRO BANK 153,378 COMERICA BANK 215,056 AM SOUTH 347,309 BANK OF AMERICA CALIFORNIA 216,234 BANK OF OKLAHOMA 125,177 CHASE BANK OF TEXAS 598,501 SINGLE STORE DEPOSITORY ACCOUNTS 283,093 WELLS FARGO BANK 62,307 BANK OF AMERICA 64,418 BANK ONE, IN 168,970 PNC BANK 533,125 OAK BROOK BANK 626,017 CREDIT CARD CASH ACCOUNTS (SALES PROCESSED BY CREDIT CARD COMPANY) 8,915,907 - ------------------------------------------------------------------ OTHER DEPOSITORY ACCOUNTS - ------------------------- SERVICE MERCHANDISE - MUSCULAR DYSTROPHY ASSOC 22,896 OTHER CASH ACCOUNTS 904,988 ----------- TOTAL CASH PER GENERAL LEDGER $21,080,518 ===========
Page 4 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: OCTOBER 2, 2000 THROUGH OCTOBER 29, 2000 RECEIPTS AND DISBURSEMENTS (DOLLARS IN THOUSANDS)
ACTUAL ACTUAL ACTUAL ACTUAL TOTAL Monday 10/02/00 10/09/00 10/16/00 10/23/00 10/02/00 Sunday 10/08/00 10/15/00 10/22/00 10/29/00 10/29/00 -------- -------- -------- -------- --------- Receipts: Sales receipts $ 20,728 $ 22,310 $ 16,939 $ 21,075 $ 81,052 Miscellaneous receipts -- 470 -- -- 470 -------- -------- -------- -------- --------- Total available collections 20,728 22,780 16,939 21,075 81,522 Disbursements: Merchandise disbursements 23,038 16,199 20,748 20,379 80,364 Non-merchandise disbursements 24,343 22,215 15,068 18,316 79,942 -------- -------- -------- -------- --------- Total disbursements 47,381 38,414 35,816 38,695 160,306 -------- -------- -------- -------- --------- Net receipts/(disbursements) $(26,653) $(15,634) $(18,877) $(17,620) $ (78,784) ======== ======== ======== ======== =========
Page 5 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: OCTOBER 2, 2000 THROUGH OCTOBER 29, 2000 ROLLING REVISED CASH FLOW FORECAST (DOLLARS IN THOUSANDS)
Actual Forecast Forecast Forecast 11/05/00 11/12/00 11/26/00 12/31/00 -------- -------- -------- -------- Ending total revolver balance $240,634 $261,384 $315,210 $107,348 Term loan 60,000 60,000 60,000 60,000 Standby letters of credit 27,228 27,184 27,184 25,684 Trade letters of credit 16,828 17,697 20,235 20,248 -------- -------- -------- -------- Total extensions of credit 344,690 366,265 422,629 213,280 Borrowing base 500,951 526,438 559,221 455,663 -------- -------- -------- -------- Availability $156,261 $160,173 $136,592 $242,383 ======== ======== ======== ========
Page 6 7 CHAPTER 11 MONTHLY OPERATING REPORT MONTHLY REPORTING QUESTIONNAIRE CASE NAME: SERVICE MERCHANDISE COMPANY, INC. et. al. CASE NUMBER: 399-02649 THROUGH 399-02680 PERIOD: October 2, 2000 THROUGH October 29, 2000 4. Payments to Professionals October 2, 2000 through October 29, 2000
Vendor # Vendor Name Check Amt. Check Date Check # - ----------------------------------------------------------------------------------------------------------------- 101730 CBIZ Property Tax Solutions, Inc. $7,212.24 10/05/00 50019715 86237 Brusniak, Clement, Harrison & McCool, PC $1,729.57 10/05/00 50019719 94414 Keen Realty Consultants, Inc. $147,012.90 10/09/00 50019947 101607 PricewaterhouseCoopers, LLP $352.95 10/10/00 50020047 101730 CBIZ Property Tax Solutions, Inc. $6,000.00 10/10/00 50020109 101730 CBIZ Property Tax Solutions, Inc. $1,442.45 10/10/00 50020110 94005 Donald A. Blum $7,438.00 10/16/00 50020639 57117 Deloitte & Touche $106,250.00 10/17/00 50020735 50995 Brann & Issacson $847.99 10/17/00 50020784 76921 Doody and Lafakis, Ltd $339.71 10/18/00 50021214 57117 Deloitte & Touche $20,725.00 10/19/00 50021342 101625 DG Hart Associates, Inc. $52,440.73 10/20/00 B0023141 99444 Sitrick & Company $21,776.15 10/20/00 B0023143 53703 Barron and Stadfeld, PC $426.85 10/23/00 50021655 57809 McNeill & Taylor, PA $4,384.17 10/23/00 50021656 67017 Barkley & Thompson $4,327.20 10/23/00 50021657 91420 Magenheim, Bateman, Robinson $78.91 10/23/00 50021659 95913 Locke, Reynolds, Boyd & Weisell $72.30 10/23/00 50021662 63010 Rives & Peterson $85.44 10/24/00 50021730 84740 Taft, Stettinius & Hollister $37.28 10/24/00 50021741 97660 Schnader Harrison, Segal & Lewis $20.00 10/24/00 50021754 48779 Loss, Pavone & Orel $86.50 10/24/00 50021817 67017 Barkley & Thompson $74.60 10/24/00 50021818 69583 McCarthy, Fingar, Donovan, Drazen & Smith, LLP $35.00 10/24/00 50021820 93547 D'Assaro and Hall $2,210.85 10/24/00 50021823 96684 Sherbow & Mitchell, PC $31.14 10/24/00 50021824 57117 Deloitte & Touche $20,797.80 10/25/00 50022005 67017 Barkley & Thompson $54.00 10/26/00 50022319 99459 Robert L. Berger & Associates $32,921.99 10/26/00 B0023168 98176 Price Waterhouse Coopers, LLP $163,878.00 10/27/00 50022491 101606 Service Real Estate Venture $18,782.07 10/27/00 B0023196 101993 Rothschild, Inc. $108,488.07 10/27/00 B0023198 63078 Weil, Gotshal & Manges, LLP $3,013.05 10/27/00 B0023199 71217 Bass, Berry & Sims $125,723.88 10/27/00 B0023200 98378 Skadden, Arps, Slate, Meagher & Flom $506,634.00 10/27/00 B0023201 99104 Jay Alix & Associates $136,199.06 10/27/00 B0023202 99391 Otterbourg, Steindler, Houston & Rosen, PC $122,566.14 10/27/00 B0023203 99454 Harwell, Howard, Hyne, Gabbert & Manner, PC $31,646.69 10/27/00 B0023204
Page 7 8 FORM- OPR 1 AND 2 SERVICE MERCHANDISE COMPANY, INC. AND SUBSIDIARIES CONSOLIDATED BALANCE SHEETS (UNAUDITED) (DEBTOR - IN - POSSESSION) (IN THOUSANDS)
October 29, October 1, 2000 2000 ----------- ----------- ASSETS Current Assets: Cash and cash equivalents $ 21,081 $ 22,376 Accounts receivable 7,557 7,906 Inventories 583,822 523,968 Prepaid expenses and other assets 20,892 22,641 ----------- ----------- TOTAL CURRENT ASSETS 633,352 576,891 ----------- ----------- PROPERTY AND EQUIPMENT Owned assets, net of accumulated depreciation 352,758 347,253 Capitalized leases, net of accumulated amortization 12,728 12,921 ----------- ----------- TOTAL PROPERTY AND EQUIPMENT 365,486 360,174 ----------- ----------- Other assets and deferred charges 47,390 48,865 TOTAL ASSETS $ 1,046,228 $ 985,930 =========== =========== LIABILITIES AND SHAREHOLDERS' (DEFICIT) EQUITY Liabilities Not Subject To Compromise Current Liabilities: Notes payable to banks $ 217,956 $ 139,485 Accounts payable 91,977 77,873 Accrued expenses 143,236 151,250 State & local sales tax 10,627 10,423 Current maturities capitalized leases 92 88 ----------- ----------- TOTAL CURRENT LIABILITIES 463,888 379,119 Long -Term Liabilities: Long-term debt 60,000 60,000 Capitalized lease obligations 2,412 2,420 Liabilities Subject To Compromise: Accrued restructuring costs 42,329 42,329 Capitalized lease obligations 22,916 23,229 Long-term debt 418,796 419,465 Accounts payable 197,602 196,787 Accrued expenses 68,046 67,364 ----------- ----------- Total Liabilities Subject To Compromise 749,689 749,174 TOTAL LIABILITIES 1,275,989 1,190,713 ----------- ----------- COMMITMENTS AND CONTINGENCIES SHAREHOLDERS' (DEFICIT) EQUITY Common stock 49,954 49,954 Additional paid-in-capital 6,017 6,017 Deferred compensation (315) (327) Retained (deficit) earnings (285,417) (260,427) ----------- ----------- TOTAL SHAREHOLDERS' (DEFICIT) EQUITY (229,761) (204,783) TOTAL LIABILITIES AND SHAREHOLDERS' (DEFICIT) EQUITY $ 1,046,228 $ 985,930 =========== ===========
Page 8 9 CHAPTER 11 MONTHLY OPERATING REPORT CASE NAME: SERVICE MERCHANDISE COMPANY, INC. et al. CASE NUMBER: 399-02649 THROUGH 399-02680 PERIOD: OCTOBER 2, 2000 THROUGH OCTOBER 29, 2000 SUMMARY OF ACCOUNTS RECEIVABLE Month Ended: 10/29/00 FORM OPR-3 NOT APPLICABLE Page 9 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: OCTOBER 2, 2000 THROUGH OCTOBER 29 2000 SCHEDULE OF POST PETITION LIABILITIES-ACCOUNTS PAYABLE Month Ended: 10/29/2000 FORM OPR-4
Total -------- Trade Accounts Payable (Merchandise) $ 91,977 Total -------- Expense & other payables $143,236
Page 10 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: OCTOBER 2, 2000 THROUGH OCTOBER 29, 2000 SCHEDULE OF POST PETITION LIABILITIES FORM OPR-4
Date Date Total TAXES PAYABLE Incurred Due Due ----------------------------------------- Federal income tax ** Various Various 7,843,442 State income tax Various Various (86,144) ----------- SUBTOTAL 7,757,298 ----------- Sales/use tax SUBTOTAL * Various Various 10,558,369 ----------- Personal property tax * Various Various 3,246,666 Real estate taxes * Various Various 12,499,395 Inventory taxes * Various Various - Gross receipts/bus. licenses * Various Various 50,052 Franchise taxes * Various Various 545,636 ----------- SUBTOTAL 16,341,749 ----------- ----------- TOTAL TAXES PAYABLE 34,657,416 ===========
* liability included in accrued expenses on OPR-2 ** tax reserve Page 11 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: OCTOBER 2, 2000 THROUGH OCTOBER 29, 2000 SCHEDULE OF POST PETITION LIABILITIES FORM OPR-4 (DOLLARS IN THOUSANDS)
TOTAL DUE DATE (10/29/00 INCURRED DATE DUE BALANCE) -------------------------------------- POST PETITION SECURED DEBT Revolver borrowings 04/14/00 04/14/04 $217,956 Facility standby letters of credit 04/14/00 04/14/04 25,728 Facility trade letters of credit 04/14/00 04/14/04 17,814 Term loans 04/14/00 04/14/04 60,000 -------- TOTAL EXTENSIONS OF CREDIT $321,498 ======== ACCRUED INTEREST PAYABLE $ 1,333 ========
Page 12 13 FORM OPR- 5 SERVICE MERCHANDISE COMPANY, INC. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED) (DEBTOR - IN - POSSESSION) (IN THOUSANDS)
ACTIVITY OCTOBER 2, 2000 THROUGH OCTOBER 29, 2000 ---------------- Net Sales $ 73,531 Costs of merchandise sold and buying and occupancy expense 57,080 -------- Gross margin after cost of merchandise sold and buying and occupancy expenses 16,451 Selling, General and Administrative Expenses: Net Employment Expense 18,002 Net Advertising 6,947 Banking and Other Fees 1,048 Real Estate and Other Taxes 1,719 Supplies 1,441 Communication and Equipment 373 Travel 863 UCC and Other Services (702) Legal and Professional 446 Sales and Shipping 71 Insurance 339 Miscellaneous 62 Credit Card Services (54) -------- Total Selling, General and Administrative Expenses 30,555 Other expense/(income), net (2) Restructuring charge (credit) 97 Depreciation and amortization 3,033 -------- Earnings (loss) before interest, reorganization items, and income tax (17,232) Interest expense - debt 3,273 Interest expense - capitalized leases 284 -------- Earnings (loss) before reorganization items, and income tax (20,789) Reorganization Items: Legal and Professional 1,995 Miscellaneous fees 199 Loss (Gain) on Disposal of Assets 2,149 Close Store Charges (142) -------- Total Reorganization Items 4,201 Earnings (loss) before income tax (24,990) -------- Net earnings (loss) $(24,990) ========
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