EX-99 2 g67992ex99.txt MONTHLY OPERATING REPORT PERIOD ENDED 2/25/01 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 February 25, 2001 COMES NOW, SERVICE MERCHANDISE COMPANY, INC. Debtor-In-Possession, and hereby submits its Monthly Operating Report for the period commencing January 29, 2001 and ending February 25, 2001 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: 3/16/01 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 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: JANUARY 29, 2001 THROUGH FEBRUARY 25, 2001 1. Payroll
WAGES TAXES OFFICERS TITLE GROSS NET DUE PAID ----------------------------------------------------------------------------------------------------------------------------------- S. CUSANO CHAIRMAN OF THE BOARD, CHIEF EXECUTIVE OFFICER AND $ 50,188.10 $ 29,123.92 $ 4,203.55 $ 13,480.37 PRESIDENT C. STEVEN MOORE SENIOR VICE PRESIDENT, CHIEF ADMINISTRATIVE OFFICER, $ 93,377.87 $ 58,278.69 $ 2,007.68 $ 27,241.24 GENERAL COUNSEL AND SECRETARY MICHAEL E. HOGREFE SENIOR VICE PRESIDENT AND CHIEF FINANCIAL OFFICER $117,307.75 $ 77,497.18 $ 1,791.92 $ 38,018.65 ROBERT J. PINDRED VICE PRESIDENT AND TREASURER $ 33,686.46 $ 21,071.22 $ 730.73 $ 9,681.46 JOE M. ELLIOTT VICE PRESIDENT, PROPERTY ADMINISTRATION $ 33,150.78 $ 20,009.95 $ 816.10 $ 9,625.64 KARREN M. PRASIFKA ASSISTANT GENERAL COUNSEL VICE PRESIDENT $ 41,415.10 $ 26,261.00 $ 1,390.30 $ 13,642.27 KENNETH A. CONWAY VICE PRESIDENT AND CONTROLLER $ 36,349.05 $ 22,779.86 $ 776.26 $ 10,433.77 ERIC A. KOVATS SENIOR VICE PRESIDENT, STORES $ 67,729.70 $ 41,786.44 $ 1,426.68 $ 20,538.18 JERRY E. FOREMAN SENIOR VICE PRESIDENT, MERCHANDISING $ 82,736.43 $ 51,172.16 $ 1,856.82 $ 24,465.94
The following officers received an incentive bonus included in the amounts above. C. STEVEN MOORE $ 65,625.01 ROBERT J. PINDRED $ 22,125.03 JOE M. ELLIOTT $ 21,502.65 KARREN M. PRASIFKA $ 26,750.05 KENNETH A. CONWAY $ 24,000.05 ERIC A. KOVATS $ 45,729.24 JERRY E. FOREMAN $ 56,875.00
The following associate received a signing bonus included in the amounts above. MICHAEL E. HOGREFE $ 100,000.00
The following former officers were entitled to bonuses, paid during the time period, which are not included in the above amounts. CHARLES K. SEPTER $ 150,000.06 ROSE C. SEPTER $ 82,151.15
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: JANUARY 29, 2001 THROUGH FEBRUARY 25, 2001 2. INSURANCE
COVERAGE POLICY EXPIRATION TYPE NAME OF CARRIER AMOUNT NUMBER DATE ------------------------------------------------------------------------------------------------------------------------------ Property Fireman's Fund Insurance Co $ 5 Million 01MXI97600751 12/31/01 Royal Indemnity Co. $ 5 Million RHD317182 12/31/01 Westchester Fire $15 Million IXA394430-0 12/31/01 Allianz Insurance Co $12 Million CLP1036568 12/31/01 TIG Insurance Co $13 Million XPT38844629 12/31/01 Westchester Fire $20 Million IXA394429-0 12/31/01 Allianz Insurance Co $30 Million CLP1036568 12/31/01 Allianz Insurance Co $25 Million CLP1036568 12/31/01 Boiler & Machinery Hartford Steam Boiler $10 Million 4914359 12/31/01 Transit Fireman's Fund Insurance Co $1 Million CCIMG72820 12/31/01 Ocean Cargo Fireman's Fund Insurance Co $10 Million CR37211 12/31/01 General Liability Ace American Ins Co $ 5 Million XSLG20577009 12/31/01 Workers' Compensation Pacific Employers Ins Co Statutory WLRC43024516 12/31/01 WC Excess Ace American Ins Co Statutory XWC014026 12/31/01 WC Contractual Indemnity Illinois Union Insurance Co Statutory CTPG20577344 12/31/01 Auto Pacific Employers Ins Co $1 Million ISAH07968358 12/31/01 Umbrella Ohio Casualty Group $50 Million BXO52805120 12/31/01 Excess Liability Zurich American of Illinois $50 Million AEC287610703 12/31/01 International Ace American Ins Co $1 Million PHF051491 12/31/01 Punitive Damages Magna Carta Ins. Ltd. $50 Million MCPD201058 12/31/01 Punitive Damages - Excess Zurich Ins. Co Bermuda Branch $50 Million ZICBB-091 PD 12/31/01 Directors & Officers Continental Insurance Co $10 Million 300714943 03/01/02 Federal Insurance Co $10 Million 81278902-A 03/01/02 Royal Insurance Co $10 Million PSF000009 03/01/02 Greenwich Ins. Co. $10 Million ELU82217-01 03/01/02 Zurich-American Ins. Co. $10 Million DOC3746468-00 03/01/02 Kemper Insurance Co $10 Million 3DY00200100 03/01/02 Crime National Union Fire Ins Co $10 Million 8726439 03/01/02 Fiduciary National Union Fire Ins Co $10 Million 8726812 03/01/02 Employment Practices Liability Chubb Insurance Co $ 5 Million 81278901A 03/01/02 National Union Fire Ins Co $ 5 Million 8727499 03/01/02 Royal Insurance Co $10 Million PSF000010 03/01/02 Special Crime Reliance Insurance Co $25 Million NFK1951937 05/01/02 PREMIUM DATE COVERAGE TYPE NAME OF CARRIER AMOUNT PAID THROUGH ---------------------------------------------------------------------------------------------------------------- Property Fireman's Fund Insurance Co $685,000 12/31/01 Royal Indemnity Co. $ 90,250 12/31/01 Westchester Fire $ 64,125 12/31/01 Allianz Insurance Co $ 26,583 12/31/01 TIG Insurance Co $ 28,730 12/31/01 Westchester Fire $ 13,500 12/31/01 Allianz Insurance Co $ 20,250 12/31/01 Allianz Insurance Co $ 8,500 12/31/01 Boiler & Machinery Hartford Steam Boiler $ 9,934 12/31/01 Transit Fireman's Fund Insurance Co $ 10,000 12/31/01 Ocean Cargo Fireman's Fund Insurance Co $ 40,000 12/31/01 General Liability Ace American Ins Co $212,279 12/31/01 Workers' Compensation Pacific Employers Ins Co $136,566 12/31/01 WC Excess Ace American Ins Co $ 12,108 12/31/01 WC Contractual Indemnity Illinois Union Insurance Co $ 20,500 12/31/01 Auto Pacific Employers Ins Co $ 33,518 12/31/01 Umbrella Ohio Casualty Group $ 88,250 12/31/01 Excess Liability Zurich American of Illinois $ 30,000 12/31/01 International Ace American Ins Co $ 2,500 12/31/01 Punitive Damages Magna Carta Ins. Ltd. $ 40,000 12/31/01 Punitive Damages - Excess Zurich Ins. Co Bermuda Branch $ 5,000 12/31/01 Directors & Officers Continental Insurance Co $200,000 03/01/02 Federal Insurance Co $190,000 03/01/02 Royal Insurance Co $175,000 03/01/02 Greenwich Ins. Co. $198,949 03/01/02 Zurich-American Ins. Co. $146,704 03/01/02 Kemper Insurance Co $ 99,110 03/01/02 Crime National Union Fire Ins Co $ 53,833 03/01/02 Fiduciary National Union Fire Ins Co $ 25,839 03/01/02 Employment Practices Liability Chubb Insurance Co $100,000 03/01/02 National Union Fire Ins Co $ 70,000 03/01/02 Royal Insurance Co $ 85,000 03/01/02 Special Crime Reliance Insurance Co $ 13,458 05/01/02
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: JANUARY 29, 2001 THROUGH FEBRUARY 25, 2001 3. BANK ACCOUNTS TOTAL CASH AND CASH EQUIVALENTS CASH IN STORES AND HOME OFFICE ------------------------------ HOME OFFICE $ 6,450 RETAIL SAFE FUNDS 1,785,292 CORPORATE ACCOUNTS 4,178,622 ------------------ STORE DEPOSITORY ACCOUNTS ------------------------- FIRST TENNESSEE 986,669 KEY NATIONAL BANK 1,062,935 BANK OF BOSTON 247,113 BANK OF BOSTON CONNECTICUT 109,726 FIRST UNION 1,922,586 BANK ONE LOUISIANA 968,620 ABN - AMRO BANK 593,483 COMERICA BANK 168,838 AM SOUTH 1,330,132 BANK OF AMERICA 318,920 BANK OF OKLAHOMA 380,583 CHASE BANK OF TEXAS 893,455 SINGLE STORE DEPOSITORY ACCOUNTS 1,052,990 WELLS FARGO BANK 243,579 BANK ONE, IN 406,755 PNC BANK 1,875,009 OAK BROOK BANK 2,221,396 CREDIT CARD CASH ACCOUNTS (SALES PROCESSED BY CREDIT CARD COMPANY) 6,994,826 ----------------------------------------------------------------- OTHER DEPOSITORY ACCOUNTS ------------------------- SERVICE MERCHANDISE - MUSCULAR DYSTROPHY ASSOC. 51,741 OTHER CASH ACCOUNTS 127,671 ------------ TOTAL CASH PER GENERAL LEDGER $ 27,927,392 ============
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: JANUARY 29, 2001 THROUGH FEBRUARY 25, 2001 RECEIPTS AND DISBURSEMENTS (DOLLARS IN THOUSANDS)
ACTUAL ACTUAL ACTUAL ACTUAL TOTAL Monday 01/29/01 02/05/01 02/12/01 02/19/01 01/29/01 Sunday 02/04/01 02/11/01 02/18/01 02/25/01 02/25/01 --------- ---------- -------- -------- --------- Receipts: Sales receipts $ 13,088 $ 17,367 $ 37,378 $ 21,219 $ 89,052 Miscellaneous receipts 759 468 -- -- 1,227 --------- --------- -------- -------- --------- Total available collections 13,847 17,835 37,378 21,219 90,279 Disbursements: Merchandise disbursements 8,618 9,634 7,793 9,370 35,415 Non-merchandise disbursements 21,714 20,702 13,186 12,873 68,475 --------- --------- -------- -------- --------- Total disbursements 30,332 30,336 20,979 22,243 103,890 --------- --------- -------- -------- --------- Net receipts/(disbursements) $ (16,485) $ (12,501) $ 16,399 $ (1,024) $ (13,611) ========= ========= ======== ======== =========
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: JANUARY 29, 2001 THROUGH FEBRUARY 25, 2001 ROLLING REVISED CASH FLOW FORECAST (DOLLARS IN THOUSANDS)
ACTUAL ACTUAL ACTUAL FORECAST FORECAST FORECAST 01/28/01 02/25/01 03/04/01 04/01/01 04/29/01 05/27/01 -------- -------- -------- -------- -------- -------- Ending total revolver balance $141,748 $155,713 $157,198 $179,423 $218,393 $194,036 Term loan 60,000 60,000 60,000 60,000 60,000 60,000 Standby letters of credit 24,934 23,895 23,895 23,895 23,895 23,895 Trade letters of credit 20,912 23,538 23,484 20,196 19,979 14,237 -------- -------- -------- -------- -------- -------- Total extensions of credit 247,594 263,146 264,577 283,514 322,267 292,168 Borrowing base 393,983 409,138 402,837 404,572 426,523 412,885 -------- -------- -------- -------- -------- -------- Availability $146,389 $145,992 $138,260 $121,058 $104,256 $120,717 ======== ======== ======== ======== ======== ========
Page 6 7 MONTHLY OPERATING REPORT MONTHLY REPORTING QUESTIONNAIRE CASE NAME: SERVICE MERCHANDISE COMPANY, INC. ET AL. CASE NUMBER: 399-02649 THROUGH 399-02680 PERIOD: JANUARY 29, 2001 THROUGH FEBRUARY 25, 2001 4. PAYMENTS TO PROFESSIONALS JANUARY 29, 2001 THROUGH FEBRUARY 25, 2001
VENDOR # VENDOR NAME CHECK AMT. CHECK DATE CHECK # --------------------------------------------------------------------------------------------------------------------------- 50995 Brann & Isaacson $ 440.47 01/29/01 50032368 86237 Brusniak, Clement, Harrison & McCool, PC, Inc. $ 838.00 01/29/01 50032374 101232 E & Y Capital Advisors, LLC $ 78,998.00 02/01/01 B0023949 63078 Weil, Gotshal & Manges, LLP $ 501.68 02/01/01 B0023950 71217 Bass, Berry & Sims $ 99,904.52 02/01/01 B0023951 99391 Otterbourg, Steindler, Houston & Rosen, PC $ 96,768.98 02/01/01 B0023953 99454 Harwell, Howard, Hyne, Gabbert & Manner, PC $ 23,647.39 02/01/01 B0023954 99104 Jay Alix & Associates $101,802.93 02/01/01 B0023955 98378 Skadden, Arps, Slate, Meagher & Flom $595,785.00 02/01/01 B0023956 101625 DG Hart Associates, Inc. $ 29,407.78 02/05/01 B0023998 57117 Deloitte & Touche $132,500.00 02/07/01 50033150 101730 CBIZ Property Tax Solutions, Inc. $ 14,412.50 02/07/01 50033163 99329 Aegis Property Tax Specialists $ 4,625.81 02/07/01 50033211 99329 Aegis Property Tax Specialists $ 15,112.50 02/07/01 50033212 101606 Service Real Estate Venture $ 1,143.59 02/09/01 B0024010 101606 Service Real Estate Venture $344,957.94 02/09/01 B0024061 57117 Deloitte & Touche $ 26,572.00 02/14/01 50033785 86237 Brusniak, Clement, Harrison & McCool, PC, Inc. $ 207.58 02/14/01 50033793 99459 Robert L. Berger & Associates $ 75,357.33 02/16/01 B0024101
Page 7 8 FORM OPR-1 AND 2 SERVICE MERCHANDISE COMPANY, INC. AND SUBSIDIARIES CONSOLIDATED BALANCE SHEETS (UNAUDITED) (DEBTOR-IN-POSSESSION) (DOLLARS IN THOUSANDS)
FEBRUARY 25, JANUARY 28, 2001 2001 ------------ ----------- ASSETS Current Assets: Cash and cash equivalents $ 27,927 $ 19,426 Accounts receivable 5,802 5,641 Inventories 436,932 452,277 Prepaid expenses and other assets 12,919 17,564 -------- -------- TOTAL CURRENT ASSETS 483,580 494,908 -------- -------- PROPERTY AND EQUIPMENT Owned assets, net of accumulated depreciation 360,414 362,410 Capitalized leases, net of accumulated amortization 11,945 12,138 -------- -------- TOTAL PROPERTY AND EQUIPMENT 372,359 374,548 -------- -------- Other assets and deferred charges 56,653 56,942 -------- -------- TOTAL ASSETS $912,592 $926,398 ======== ======== LIABILITIES AND SHAREHOLDERS' (DEFICIT) EQUITY Liabilities Not Subject to Compromise Current Liabilities: Notes payable to banks $155,713 $141,747 Accounts payable 31,651 37,060 Accrued expenses 135,634 151,114 State & local sales tax 8,685 6,299 Current maturities capitalized leases 97 94 -------- -------- TOTAL CURRENT LIABILITIES 331,780 336,314 -------- --------
Page 8 9 FORM OPR-1 AND 2 SERVICE MERCHANDISE COMPANY, INC. AND SUBSIDIARIES CONSOLIDATED BALANCE SHEETS (UNAUDITED) (DEBTOR-IN-POSSESSION) (DOLLARS IN THOUSANDS) Long-Term Liabilities: Long-term debt $ 60,000 $ 60,000 Capitalized lease obligations 2,380 2,388 Liabilities Subject To Compromise: Accrued restructuring costs 42,182 42,188 Capitalized lease obligations 21,651 21,968 Long-term debt 415,372 416,041 Accounts payable 197,901 197,839 Accrued expenses 69,983 69,115 ----------- ----------- Total Liabilities Subject To Compromise 747,089 747,151 TOTAL LIABILITIES 1,141,249 1,145,853 ----------- ----------- COMMITMENTS AND CONTINGENCIES SHAREHOLDERS' (DEFICIT) EQUITY Common stock 49,936 49,936 Additional paid-in-capital 5,881 5,881 Deferred compensation (202) (212) Retained (deficit) earnings (284,272) (275,060) ----------- ----------- TOTAL SHAREHOLDERS' (DEFICIT) EQUITY (228,657) (219,455) TOTAL LIABILITIES AND SHAREHOLDERS' (DEFICIT) EQUITY $ 912,592 $ 926,398 =========== ===========
Page 9 10 CHAPTER 11 MONTHLY OPERATING REPORT CASE NAME: SERVICE MERCHANDISE COMPANY, INC. ET AL. CASE NUMBER: 399-02649 THROUGH 399-02680 PERIOD: JANUARY 29, 2001 THROUGH FEBRUARY 25, 2001 SUMMARY OF ACCOUNTS RECEIVABLE MONTH ENDED: 02/25/01 FORM OPR-3 NOT APPLICABLE 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: JANUARY 29, 2001 THROUGH FEBRUARY 25, 2001 SCHEDULE OF POST PETITION LIABILITIES MONTH ENDED: 02/25/2001 FORM OPR-4 (DOLLARS IN THOUSANDS)
Total --------- Trade Accounts Payable (Merchandise) $ 31,651
Total --------- Expense & other payables $ 135,634
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: JANUARY 29, 2001 THROUGH FEBRUARY 25, 2001 SCHEDULE OF POST PETITION LIABILITIES FORM OPR-4 (DOLLARS IN THOUSANDS)
DATE DATE TOTAL TAXES PAYABLE INCURRED DUE DUE --------------------------------------- Federal income tax ** Various Various $ 7,908 State income tax Various Various $ (1) ------- SUBTOTAL $ 7,907 ------- Sales/use tax SUBTOTAL * Various Various $ 8,838 ------- Personal property tax * Various Various $ 1,706 Real estate taxes * Various Various $ 9,933 Inventory taxes * Various Various $ -- Gross receipts/bus licenses * Various Various $ 99 Franchise taxes * Various Various $ 465 ------- SUBTOTAL $12,203 ------- ------- TOTAL TAXES PAYABLE $28,948 =======
* liability included in accrued expenses on OPR-2 ** tax reserve Page 12 13 CHAPTER 11 MONTHLY OPERATING REPORT MONTHLY REPORTING QUESTIONNAIRE CASE NAME: SERVICE MERCHANDISE COMPANY, INC. ET AL. CASE NUMBER: 399-02649 THROUGH 399-02680 PERIOD: JANUARY 29, 2001 THROUGH FEBRUARY 25, 2001 SCHEDULE OF POST PETITION LIABILITIES FORM OPR-4 (DOLLARS IN THOUSANDS)
DATE TOTAL DUE INCURRED DATE DUE (2/25/01 BALANCE) ---------------------------------------------------- POST PETITION SECURED DEBT Revolver borrowings 04/14/00 04/14/04 $ 155,713 Facility standby letters of credit 04/14/00 04/14/04 23,895 Facility trade letters of credit 04/14/00 04/14/04 23,538 Term loans 04/14/00 04/14/04 60,000 --------- TOTAL EXTENSIONS OF CREDIT $ 263,146 ========= ACCRUED INTEREST PAYABLE $ 1,025 =========
Page 13 14 SERVICE MERCHANDISE COMPANY, INC. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED) (DEBTOR-IN-POSSESSION) (DOLLARS IN THOUSANDS)
ACTIVITY JANUARY 29, 2001 THROUGH FEBRUARY 25, 2001 ----------------- Net Sales $ 90,321 Costs of merchandise sold and buying and occupancy expense 61,295 -------- Gross margin after cost of merchandise sold and buying and occupancy expenses 29,026 Selling, General and Administrative Expenses: Net Employment Expense 13,183 Net Advertising 11,291 Banking and Other Fees 1,313 Real Estate and Other Taxes 1,921 Supplies 601 Communication and Equipment 327 Travel 291 UCC and Other Services 93 Legal and Professional 386 Sales and Shipping 51 Insurance 486 Miscellaneous (14) Credit Card Services (41) -------- Total Selling, General and Administrative Expenses 29,888 Other expense/(income), net (13)
Page 14 15 SERVICE MERCHANDISE COMPANY, INC. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED) (DEBTOR-IN-POSSESSION) (DOLLARS IN THOUSANDS) Restructuring charge (credit) -- Depreciation and amortization 3,221 -------- Earnings (loss) before interest, reorganization items, and income tax (4,070) Interest expense - debt 2,917 Interest expense - capitalized leases 272 -------- Earnings (loss) before reorganization items, and income tax (7,259) Reorganization Items: Legal and Professional 1,720 Miscellaneous 165 Loss (Gain) on Disposal of Assets 68 Close Store Charges -- -------- Total Reorganization Items 1,953 Earnings (loss) before income tax (9,212) Income tax benefit -- Cumulative Effect of Change in Accounting Principles -- -------- Net earnings (loss) $ (9,212) ========
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