EX-99.1 2 g67302ex99-1.txt REMAINING PORTION/MONTHLY OPERATING REPORT 12/31 1 Exhibit 99.1 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 December 31, 2000 -------------------- COMES NOW, SERVICE MERCHANDISE COMPANY, INC. ------------------------------------------------ Debtor-In-Possession, and hereby submits its Preliminary Monthly Operating Report for the period commencing November 27, 2000 and ending December 31, 2000 as shown by the report and exhibits consisting of 9 pages and containing the following as indicated: [X] Remaining portion of the 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. This report is based on preliminary unaudited results, and includes those reports agreed upon as appropriate at this time between the Debtor and the U.S. Trustee. The Debtor has filed with the U. S. Trustee on January 22, 2001, the preliminary December 31, 2000 Montly Operating Report, which included certain schedules, including payroll, insurance, receipts and disbursements, payment to professionals and bank accounts. 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: 2/19/01 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: NOVEMBER 27, 2000 THROUGH DECEMBER 31, 2000 3. BANK ACCOUNTS TOTAL CASH AND CASH EQUIVALENTS CASH IN STORES AND HOME OFFICE ------------------------------ HOME OFFICE $ 7,250 RETAIL SAFE FUNDS 4,689,103 CORPORATE ACCOUNTS 8,688,808 ------------------ STORE DEPOSITORY ACCOUNTS ------------------------- FIRST TENNESSEE 744,185 KEY NATIONAL BANK 545,474 BANK OF BOSTON 185,766 BANK OF BOSTON CONNECTICUT 136,843 FIRST UNION 2,381,156 BANK ONE LOUISIANA 550,284 ABN - AMRO BANK 169,207 COMERICA BANK 173,456 AM SOUTH 423,464 BANK OF AMERICA 27,755 BANK OF OKLAHOMA 741,229 CHASE BANK OF TEXAS 677,945 SINGLE STORE DEPOSITORY ACCOUNTS 681,546 WELLS FARGO BANK 95,765 BANK ONE, IN 578,448 PNC BANK 862,992 OAK BROOK BANK 2,467,739 CREDIT CARD CASH ACCOUNTS (SALES PROCESSED BY CREDIT CARD COMPANY) 6,948,287 ------------------------------------------------------------------ OTHER DEPOSITORY ACCOUNTS ------------------------- SERVICE MERCHANDISE - MUSCULAR DYSTROPHY ASSOC. 42,819 OTHER CASH ACCOUNTS 18,283 ----------- TOTAL CASH PER GENERAL LEDGER $31,837,804 ===========
Note: Revision to preliminary report filed January 22, 2001. 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: NOVEMBER 27, 2000 THROUGH DECEMBER 31, 2000 ROLLING REVISED CASH FLOW FORECAST (DOLLARS IN THOUSANDS)
Actual Actual Forecast Forecast Forecast 12/31/00 02/04/01 02/25/01 04/01/01 04/29/01 -------- -------- -------- -------- -------- Ending total revolver balance $ 89,143 $158,266 $152,123 $180,367 $191,490 Term loan 60,000 60,000 60,000 60,000 60,000 Standby letters of credit 24,934 24,934 24,934 24,934 24,934 Trade letters of credit 14,800 19,609 25,896 19,553 19,002 -------- -------- -------- -------- -------- Total extensions of credit 188,877 262,809 262,953 284,854 295,426 Borrowing base 419,174 400,443 409,380 401,632 411,750 -------- -------- -------- -------- -------- Availability $230,297 $137,634 $146,427 $116,778 $116,324 ======== ======== ======== ======== ========
Page 3 4 FORM OPR - 1 AND 2 SERVICE MERCHANDISE COMPANY, INC. AND SUBSIDIARIES CONSOLIDATED BALANCE SHEETS (UNAUDITED) (DEBTOR - IN - POSSESSION) (IN THOUSANDS)
December 31, November 26, 2000 2000 ----------- ----------- ASSETS Current Assets: Cash and cash equivalents $ 31,838 $ 54,537 Accounts receivable 7,061 9,065 Inventories 440,324 591,214 Prepaid expenses and other assets 11,025 25,778 ----------- ----------- TOTAL CURRENT ASSETS 490,248 680,594 ----------- ----------- PROPERTY AND EQUIPMENT Owned assets, net of accumulated depreciation 364,898 355,619 Capitalized leases, net of accumulated amortization 12,330 12,537 ----------- ----------- TOTAL PROPERTY AND EQUIPMENT 377,228 368,156 ----------- ----------- Other assets and deferred charges 58,376 56,647 ----------- ----------- TOTAL ASSETS $ 925,852 $ 1,105,397 =========== =========== LIABILITIES AND SHAREHOLDERS' (DEFICIT) EQUITY Liabilities Not Subject To Compromise Current Liabilities: Notes payable to banks $ 89,143 $ 281,351 Accounts payable 48,570 89,987 Accrued expenses 158,843 149,942 State & local sales tax 16,300 11,402 Current maturities capitalized leases 93 90 ----------- ----------- TOTAL CURRENT LIABILITIES 312,949 532,772 ----------- ----------- Long-Term Liabilities: Long-term debt 60,000 60,000 Capitalized lease obligations 2,396 2,404 Liabilities Subject To Compromise: Accrued restructuring costs 42,189 42,326 Capitalized lease obligations 22,288 22,606 Long-term debt 416,709 418,128 Accounts payable 197,830 197,660 Accrued expenses 68,235 68,267 ----------- ----------- Total Liabilities Subject To Compromise 747,251 748,987 TOTAL LIABILITIES 1,122,596 1,344,163 ----------- ----------- COMMITMENTS AND CONTINGENCIES SHAREHOLDERS' (DEFICIT) EQUITY Common stock 49,935 49,954 Additional paid-in-capital 5,881 6,017 Deferred compensation (221) (303) Retained (deficit) earnings (252,339) (294,434) ----------- ----------- TOTAL SHAREHOLDERS' (DEFICIT) EQUITY (196,744) (238,766) TOTAL LIABILITIES AND SHAREHOLDERS' (DEFICIT) EQUITY $ 925,852 $ 1,105,397 =========== ===========
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: November 26, 2000 THROUGH December 31, 2000 SCHEDULE OF POST PETITION LIABILITIES-ACCOUNTS PAYABLE Month Ended: 12/31/2000 FORM OPR-4
Total -------- Trade Accounts Payable (Merchandise) $ 48,570 Total -------- Expense & other payables $158,843
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: NOVEMBER 27, 2000 THROUGH DECEMBER 31, 2000 SCHEDULE OF POST PETITION LIABILITIES FORM OPR-4
Date Date Total TAXES PAYABLE Incurred Due Due --------------------------------------- Federal income tax ** Various Various 7,362,490 State income tax Various Various - ------------ SUBTOTAL 7,362,490 ------------ Sales/use tax SUBTOTAL * Various Various 16,446,702 ------------ Personal property tax * Various Various 2,948,056 Real estate taxes * Various Various 10,968,854 Inventory taxes * Various Various - Gross receipts/bus. licenses * Various Various 188,512 Franchise taxes * Various Various 394,063 ------------ SUBTOTAL 14,499,485 ------------ ------------ TOTAL TAXES PAYABLE 38,308,678 ============
* liability included in accrued expenses on OPR-2 ** tax reserve 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: NOVEMBER 27, 2000 THROUGH DECEMBER 31, 2000 SCHEDULE OF POST PETITION LIABILITIES FORM OPR-4 (DOLLARS IN THOUSANDS)
TOTAL DUE DATE (12/31/00 INCURRED DATE DUE BALANCE) ------------------------------------ POST PETITION SECURED DEBT Revolver borrowings 04/14/00 04/14/04 $ 89,143 Facility standby letters of credit 04/14/00 04/14/04 24,934 Facility trade letters of credit 04/14/00 04/14/04 14,800 Term loans 04/14/00 04/14/04 60,000 -------- TOTAL EXTENSIONS OF CREDIT $188,877 ======== ACCRUED INTEREST PAYABLE $ 1,753 ========
Page 7 8 FORM OPR- 5 SERVICE MERCHANDISE COMPANY, INC. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED) (DEBTOR - IN - POSSESSION) (IN THOUSANDS)
ACTIVITY NOVEMBER 27, 2000 THROUGH DECEMBER 31, 2000 ------------ Net Sales $ 328,827 Costs of merchandise sold and buying and occupancy expense 209,367 --------- Gross margin after cost of merchandise sold and buying and occupancy expenses 119,460 Selling, General and Administrative Expenses: Net Employment Expense 27,727 Net Advertising 21,099 Banking and Other Fees 4,170 Real Estate and Other Taxes 659 Supplies 2,126 Communication and Equipment 478 Travel 565 UCC and Other Services 1,099 Legal and Professional 403 Sales and Shipping 139 Insurance (1,315) Miscellaneous (456) Credit Card Services (129) --------- Total Selling, General and Administrative Expenses 56,565 Other expense/(income), net (7) Restructuring charge (credit) (81) Depreciation and amortization 3,875 --------- Earnings (loss) before interest, reorganization items, and income tax 59,108 Interest expense - debt 4,412 Interest expense - capitalized leases 212 --------- Earnings (loss) before reorganization items, and income tax 54,484 Reorganization Items: Legal and Professional 10,909 Miscellaneous fees 1,447 Loss (Gain) on Disposal of Assets 395 Close Store Charges 44 --------- Total Reorganization Items 12,795 Earnings (loss) before income tax 41,689 Income tax benefit 406 Cumulative Effect of Change in Accounting Principles -- --------- Net earnings (loss) $ 42,095 =========
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