EX-99 2 g68828ex99.txt MONTHLY OPERATING REPORT 1 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 April 1, 2001 ------------------- COMES NOW, SERVICE MERCHANDISE COMPANY, INC. ------------------------------------ Debtor-In-Possession, and hereby submits its Monthly Operating Report for the period commencing February 26, 2001 ----------------- and ending April 1, 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: 4/23/01 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: FEBRUARY 26, 2001 THROUGH APRIL 1, 2001 1. Payroll
WAGES TAXES OFFICERS TITLE GROSS NET DUE PAID ------------------------------------------------------------------------------------------------------------------------------------ S. CUSANO CHAIRMAN OF THE BOARD, CHIEF EXECUTIVE OFFICER AND PRESIDENT $ 273,327.10 $ 186,448.73 $ 4,500.55 $ 78,499.52 C. STEVEN MOORE SENIOR VICE PRESIDENT, CHIEF ADMINISTRATIVE OFFICER, GENERAL COUNSEL AND SECRETARY $ 120,754.27 $ 82,400.65 $ 2,167.60 $ 33,351.52 MICHAEL E. HOGREFE SENIOR VICE PRESIDENT AND CHIEF FINANCIAL OFFICER $ 32,118.57 $ 21,530.63 $ 1,667.30 $ 7,882.16 ROBERT J. PINDRED VICE PRESIDENT AND TREASURER $ 43,531.61 $ 27,866.88 $ 552.76 $ 12,278.14 JOE M. ELLIOTT VICE PRESIDENT, PROPERTY ADMINISTRATION $ 42,800.13 $ 26,456.70 $ 632.76 $ 12,280.88 KARREN M. PRASIFKA ASSISTANT GENERAL COUNSEL VICE PRESIDENT $ 53,484.52 $ 35,965.91 $ 1,161.80 $ 16,217.31 KENNETH A. CONWAY VICE PRESIDENT AND CONTROLLER $ 46,976.37 $ 30,522.80 $ 584.86 $ 12,837.06 ERIC A. KOVATS SENIOR VICE PRESIDENT, STORES $ 87,404.59 $ 58,621.92 $ 5,158.48 $ 7,589.83 JERRY E. FOREMAN SENIOR VICE PRESIDENT, MERCHANDISING $ 106,879.31 $ 72,168.98 $ 2,005.33 $ 29,054.20 KIMBERLY B. SOUTHARD ASSISTANT VICE PRESIDENT, STRATEGIC PLANNING AND ASSISTANT TREASURER $ 29,973.59 $ 18,079.40 $ 686.09 $ 9,137.37 The following officers received an incentive bonus included in the amounts above. S. CUSANO $ 210,639.00 C. STEVEN MOORE $ 86,270.64 ROBERT J. PINDRED $ 29,085.56 JOE M. ELLIOTT $ 28,267.38 KARREN M. PRASIFKA $ 35,165.62 KENNETH A. CONWAY $ 31,550.47 ERIC A. KOVATS $ 60,115.66 JERRY E. FOREMAN $ 74,767.88 KIMBERLY B. SOUTHARD $ 18,897.39 The following former officers were entitled to the remainder of the annual incentive bonus, paid during the timeperiod, which are not included in the above amounts. CHARLES K. SEPTER $ 162,029.00 ROSE C. SEPTER $ 40,211.76
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: FEBRUARY 26, 2001 THROUGH APRIL 1, 2001 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 01MXI97600751 12/31/01 $685,000 12/31/01 Royal Indemnity Co. $5 Million RHD317182 12/31/01 $90,250 12/31/01 Westchester Fire $15 Million 1XA394430-0 12/31/01 $64,125 12/31/01 Allianz Insurance Co $12 Million CLP1036568 12/31/01 $26,583 12/31/01 TIG Insurance Co $13 Million XPT38844629 12/31/01 $28,730 12/31/01 Westchester Fire $20 Million 1XA394429-0 12/31/01 $13,500 12/31/01 Allianz Insurance Co $30 Million CLP1036568 12/31/01 $20,250 12/31/01 Allianz Insurance Co $25 Million CLP1036568 12/31/01 $8,500 12/31/01 Boiler & Machinery Hartford Steam Boiler $10 Million 4914359 12/31/01 $9,934 12/31/01 Transit Fireman's Fund Insurance Co $1 Million CCIMG72820 12/31/01 $10,000 12/31/01 Ocean Cargo Fireman's Fund Insurance Co $10 Million CR37211 12/31/01 $40,000 12/31/01 General Liability Ace American Ins Co $5 Million XSLG20577009 12/31/01 $212,279 12/31/01 Workers' Compensation Pacific Employers Ins Co Statutory WLRC43024516 12/31/01 $136,566 12/31/01 WC Excess Ace American Ins Co Statutory XWC014026 12/31/01 $12,108 12/31/01 WC Contractual Indemnity Illinois Union Insurance Co Statutory CTPG20577344 12/31/01 $20,500 12/31/01 Auto Pacific Employers Ins Co $1 Million ISAH07968358 12/31/01 $33,518 12/31/01 Umbrella Ohio Casualty Group $50 Million BXO52805120 12/31/01 $88,250 12/31/01 Excess Liability Zurich American of Illinois $50 Million AEC287610703 12/31/01 $30,000 12/31/01 International Ace American Ins Co $1 Million PHF051491 12/31/01 $2,500 12/31/01 Punitive Damages Magna Carta Ins. Ltd. $50 Million MCPD201058 12/31/01 $40,000 12/31/01 Punitive Damages - Excess Zurich Ins. Co Bermuda Branch $50 Million ZICBB-091 PD 12/31/01 $5,000 12/31/01 Directors & Officers Continental Insurance Co $10 Million 300714943 03/01/02 $200,000 03/01/02 Federal Insurance Co $10 Million 81278902-A 03/01/02 $190,000 03/01/02 Royal Insurance Co $10 Million PSF000009 03/01/02 $175,000 03/01/02 Greenwich Ins. Co. $10 Million ELU82217-01 03/01/02 $198,949 03/01/02 Zurich-American Ins. Co. $10 Million DOC3746468-00 03/01/02 $146,704 03/01/02 Kemper Insurance Co $10 Million 3DY00200100 03/01/02 $99,110 03/01/02 Crime National Union Fire Ins Co $10 Million 8726439 03/01/02 $53,833 03/01/02 Fiduciary National Union Fire Ins Co $10 Million 8726812 03/01/02 $25,839 03/01/02 Employment Practices Liability Chubb Insurance Co $5 Million 81278901A 03/01/02 $100,000 03/01/02 National Union Fire Ins Co $5 Million 8727499 03/01/02 $70,000 03/01/02 Royal Insurance Co $10 Million PSF000010 03/01/02 $85,000 03/01/02 Special Crime Reliance Insurance Co $25 Million NFK1951937 05/01/02 $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: FEBRUARY 26, 2001 THROUGH APRIL 1, 2001 3. BANK ACCOUNTS TOTAL CASH AND CASH EQUIVALENTS CASH IN STORES AND HOME OFFICE HOME OFFICE $ 6,450 RETAIL SAFE FUNDS 1,782,963 CORPORATE ACCOUNTS 3,081,929 STORE DEPOSITORY ACCOUNTS FIRST TENNESSEE 1,250,754 KEY NATIONAL BANK 541,871 BANK OF BOSTON 288,947 BANK OF BOSTON CONNECTICUT 124,191 FIRST UNION 2,302,991 BANK ONE LOUISIANA 603,684 ABN - AMRO BANK 300,432 COMERICA BANK 196,349 AM SOUTH 686,967 BANK OF AMERICA 109,468 BANK OF OKLAHOMA 234,374 CHASE BANK OF TEXAS 977,099 SINGLE STORE DEPOSITORY ACCOUNTS 718,676 WELLS FARGO BANK 159,065 BANK ONE, IN 253,785 PNC BANK 893,584 OAK BROOK BANK 1,081,925 CREDIT CARD CASH ACCOUNTS (SALES PROCESSED BY CREDIT CARD COMPANY) 8,130,223 OTHER DEPOSITORY ACCOUNTS SERVICE MERCHANDISE - MUSCULAR DYSTROPHY ASSOC. 57,006 OTHER CASH ACCOUNTS 130,367 ------------ TOTAL CASH PER GENERAL LEDGER $ 23,913,101 ============
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: FEBRUARY 26, 2001 THROUGH APRIL 1, 2001 RECEIPTS AND DISBURSEMENTS (DOLLARS IN THOUSANDS)
ACTUAL ACTUAL ACTUAL ACTUAL ACTUAL TOTAL Monday 02/26/01 03/05/01 03/12/01 03/19/01 03/26/01 02/26/01 Sunday 03/04/01 03/11/01 03/18/01 03/25/01 04/01/01 04/01/01 -------- -------- -------- -------- -------- -------- Receipts: Sales receipts $ 18,916 $ 14,305 $ 13,105 $ 13,601 $ 14,950 $ 74,877 Miscellaneous receipts -- 988 -- 356 640 1,984 -------- -------- -------- -------- -------- --------- Total available collections 18,916 15,293 13,105 13,957 15,590 76,861 Disbursements: Merchandise disbursements 8,420 9,013 9,549 9,260 11,687 47,929 Non-merchandise disbursements 12,002 14,550 10,779 17,466 14,291 69,088 -------- -------- -------- -------- -------- --------- Total disbursements 20,422 23,563 20,328 26,726 25,978 117,017 -------- -------- -------- -------- -------- --------- Net receipts/(disbursements) $ (1,506) $ (8,270) $ (7,223) $(12,769) $(10,388) $ (40,156) ======== ======== ======== ======== ======== =========
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: FEBRUARY 26, 2001 THROUGH APRIL 1, 2001 ROLLING REVISED CASH FLOW FORECAST (DOLLARS IN THOUSANDS)
ACTUAL ACTUAL FORECAST FORECAST FORECAST 04/01/01 04/08/01 04/29/01 05/27/01 07/01/01 -------- -------- -------- -------- -------- Ending total revolver balance $195,906 $205,650 $223,302 $210,035 $192,702 Term loan 60,000 60,000 60,000 60,000 60,000 Standby letters of credit 23,895 23,895 23,895 23,895 24,395 Trade letters of credit 19,096 15,767 14,292 14,193 11,328 -------- -------- -------- -------- -------- Total extensions of credit 298,897 305,312 321,489 308,123 288,425 Borrowing base 412,400 414,494 436,884 428,996 406,747 -------- -------- -------- -------- -------- Availability $113,503 $109,182 $115,395 $120,873 $118,322 ======== ======== ======== ======== ========
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: February 26, 2001 THROUGH April 1, 2001 4. Payments to Professionals February 26, 2001 through April 1, 2001
VENDOR # VENDOR NAME CHECK AMT. CHECK DATE CHECK # --------------------------------------------------------------------------------------------------------- 2642 Waller, Landsden, Dortch & Davis $466.80 02/26/01 50035051 48779 Loss, Pavone & Orel $1,296.00 02/26/01 50035054 57117 Deloitte & Touche $7,157.88 02/26/01 50035055 93547 D'Assaro & Hall $1,654.73 02/26/01 50035059 57117 Deloitte & Touche $4,000.00 02/26/01 50035065 88778 Kenny, Nachwalter, Seymour, Arnold Critchlow & Spector $24.50 02/28/01 50035332 48779 Loss, Pavone & Orel $30.00 02/28/01 50035376 101232 E & Y Capital Advisors, LLC $82,095.00 02/28/01 B0024176 101625 DG Hart Associates, Inc $21,736.19 02/28/01 B0024177 101625 DG Hart Associates, Inc $40,218.93 02/28/01 B0024178 101993 Rothschild, Inc $85,086.96 02/28/01 B0024179 71217 Bass, Berry & Sims $98,526.26 02/28/01 B0024181 98378 Skadden, Arps, Slate, Meagher & Flom $290,725.00 02/28/01 B0024184 99104 Jay Alix & Associates $85,237.49 02/28/01 B0024185 99391 Otterbourg, Steindler, Houston & Rosen, PC $100,902.53 02/28/01 B0024186 99444 Sitrick & Company, Inc. $25,836.78 02/28/01 B0024187 99454 Harwell, Howard, Hyne, Gabbert & Manner, PC $11,415.30 02/28/01 B0024188 50995 Brann & Issacson $942.24 03/01/01 50035489 101730 CBIZ Property Tax Solutions, Inc $9,377.01 03/07/01 50035880 57117 Deloitte & Touche $25,044.83 03/09/01 50036169 102914 Ernst & Young, LLP $5,713.00 03/09/01 50036185 94005 Donald A Blum $5,031.50 03/09/01 50036198 101232 E & Y Capital Advisors, LLC $18,032.00 03/12/01 B0024278 101232 E & Y Capital Advisors, LLC $44,800.00 03/12/01 B0024279 101993 Rothschild, Inc $74,035.59 03/12/01 B0024280 71217 Bass, Berry & Sims $61,009.39 03/12/01 B0024282 98378 Skadden, Arps, Slate, Meagher & Flom $313,507.00 03/12/01 B0024283 99104 Jay Alix & Associates $81,176.64 03/12/01 B0024284 99391 Otterbourg, Steindler, Houston & Rosen, PC $52,777.50 03/12/01 B0024285 99454 Harwell, Howard, Hyne, Gabbert & Manner, PC $20,106.29 03/12/01 B0024286 VENDOR # VENDOR NAME CHECK AMT. CHECK DATE CHECK # --------------------------------------------------------------------------------------------------------- 101232 E & Y Capital Advisors, LLC $18,032.00 03/12/01 B0024322 93547 D'Assaro & Hall $3,701.65 03/13/01 50036334 95912 Kightlinger & Gray $484.50 03/13/01 50036337 53703 Barron & Stadfeld, PC $648.45 03/13/01 50036392 67017 Barkley & Thompson $7,667.67 03/13/01 50036393 71403 Seyfarth, Shaw, Fairweather & Geraldson $8,281.84 03/13/01 50036396 80443 Coudert Brothers $387.07 03/13/01 50036397 95913 Lock, Reynolds, Boyd and Weisell $290.06 03/13/01 50036407 96683 Gorr, Moser, Dell & Loughney $615.06 03/13/01 50036408 57117 Deloitte & Touche $18,000.00 03/20/01 50036924 57117 Deloitte & Touche $66,250.00 03/21/01 50037093 47653 Hogem Fenton, Jones & Appel, Inc. $5,000.00 03/27/01 50037526 53703 Barron & Stadfeld, PC $147.50 03/27/01 50037527 53703 Barron & Stadfeld, PC $132.00 03/27/01 50037528 67017 Barkley & Thompson $6,116.47 03/27/01 50037529 67017 Barkley & Thompson $557.00 03/27/01 50037530 67017 Barkley & Thompson $5,000.00 03/27/01 50037531 79366 Feldman & Keiffer $4,107.14 03/28/01 50037852 57117 Deloitte & Touche $113,578.16 03/29/01 50037960 98176 Price Waterhouse Coopers, LLP $81,400.00 03/29/01 50037963 101606 Service Real Estate Venture $207,754.61 03/29/01 B0024395 71217 Bass, Berry & Sims $143,215.62 03/29/01 B0024397 99104 Jay Alix & Associates $133,087.74 03/29/01 B0024398 99444 Sitrick & Company, Inc. $86,159.66 03/29/01 B0024400 101232 E & Y Capital Advisors, LLC $61,399.00 03/30/01 B0024442 101993 Rothschild, Inc $89,578.28 03/30/01 B0024443 98378 Skadden, Arps, Slate, Meagher & Flom $706,455.00 03/30/01 B0024444 99391 Otterbourg, Steindler, Houston & Rosen, PC $196,991.87 03/30/01 B0024445 99454 Harwell, Howard, Hyne, Gabbert & Manner, PC $32,356.68 03/30/01 B0024446
Page 7 8 FORM OPR-1 AND 2 SERVICE MERCHANDISE COMPANY, INC. AND SUBSIDIARIES CONSOLIDATED BALANCE SHEETS (UNAUDITED) (DEBTOR-IN-POSSESSION) (IN THOUSANDS)
April 1, February 25, 2001 2001 ----------- ------------ ASSETS Current Assets: Cash and cash equivalents $ 23,913 $ 27,927 Accounts receivable 6,298 5,802 Inventories 458,963 436,932 Prepaid expenses and other assets 21,539 12,919 ----------- ----------- TOTAL CURRENT ASSETS 510,713 483,580 ----------- ----------- PROPERTY AND EQUIPMENT Owned assets, net of accumulated depreciation 359,539 360,414 Capitalized leases, net of accumulated amortization 11,735 11,945 ----------- ----------- TOTAL PROPERTY AND EQUIPMENT 371,274 372,359 ----------- ----------- Other assets and deferred charges 57,206 56,653 ----------- ----------- TOTAL ASSETS $ 939,193 $ 912,592 =========== =========== LIABILITIES AND SHAREHOLDERS' (DEFICIT) EQUITY Liabilities Not Subject To Compromise Current Liabilities: Notes payable to banks $ 195,906 $ 155,713 Accounts payable 47,942 31,651 Accrued expenses 126,219 135,634 State & local sales tax 8,288 8,685 Current maturities capitalized leases 95 97 ----------- ----------- TOTAL CURRENT LIABILITIES 378,450 331,780 ----------- -----------
Page 8 9 FORM OPR-1 AND 2 SERVICE MERCHANDISE COMPANY, INC. AND SUBSIDIARIES CONSOLIDATED BALANCE SHEETS (UNAUDITED) (DEBTOR-IN-POSSESSION) (IN THOUSANDS)
April 1, February 25, 2001 2001 ----------- ------------ Long-Term Liabilities: Long-term debt 60,000 60,000 Capitalized lease obligations 2,372 2,380 Liabilities Subject To Compromise: Accrued restructuring costs 42,182 42,182 Capitalized lease obligations 21,388 21,651 Long-term debt 413,954 415,372 Accounts payable 198,054 197,901 Accrued expenses 70,828 69,983 ----------- ----------- Total Liabilities Subject To Compromise 746,406 747,089 TOTAL LIABILITIES 1,187,228 1,141,249 ----------- ----------- COMMITMENTS AND CONTINGENCIES SHAREHOLDERS' (DEFICIT) EQUITY Common stock 49,936 49,936 Additional paid-in-capital 5,881 5,881 Deferred compensation (190) (202) Accumulated other comprehensive loss (2,697) -- Retained (deficit) earnings (300,965) (284,272) ----------- ----------- TOTAL SHAREHOLDERS' (DEFICIT) EQUITY (248,035) (228,657) TOTAL LIABILITIES AND SHAREHOLDERS' (DEFICIT) EQUITY $ 939,192 $ 912,592 =========== ===========
Page 9 10 CHAPTER 11 MONTHLY OPERATING REPORT CASE NAME: SERVICE MERCHANDISE COMPANY, INC. et. al. CASE NUMBER: 399-02649 THROUGH 399-02680 PERIOD: FEBRUARY 26, 2001 THROUGH APRIL 01, 2001 SUMMARY OF ACCOUNTS RECEIVABLE Month Ended: 04/01/01 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: FEBRUARY 26, 2001 THROUGH APRIL 1, 2001 SCHEDULE OF POST PETITION LIABILITIES-ACCOUNTS PAYABLE MONTH ENDED: 04/01/2001 FORM OPR-4
Total --------- Trade Accounts Payable (Merchandise) $ 47,942
Total --------- Expense & other payables $ 126,219
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: FEBRUARY 26, 2001 THROUGH APRIL 1, 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 (84) ------- SUBTOTAL $ 7,824 ------- Sales/use tax SUBTOTAL * Various Various $ 8,488 ------- Personal property tax * Various Various 1,994 Real estate taxes * Various Various 8,926 Inventory taxes * Various Various 0 Gross receipts/bus licenses * Various Various 106 Franchise taxes * Various Various 526 -------- SUBTOTAL $ 11,552 -------- -------- TOTAL TAXES PAYABLE $ 27,864 ========
* 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: FEBRUARY 26, 2001 THROUGH APRIL 1, 2001 SCHEDULE OF POST PETITION LIABILITIES FORM OPR-4 (DOLLARS IN THOUSANDS)
DATE TOTAL DUE INCURRED DATE DUE (4/01/01 BALANCE) ------------------------------------------ POST PETITION SECURED DEBT Revolver borrowings 04/14/00 04/14/04 $ 195,906 Facility standby letters of credit 04/14/00 04/14/04 23,895 Facility trade letters of credit 04/14/00 04/14/04 19,096 Term loans 04/14/00 04/14/04 60,000 --------- TOTAL EXTENSIONS OF CREDIT $ 298,896 ========= ACCRUED INTEREST PAYABLE $ 1,472 =========
Page 13 14 FORM OPR-5 SERVICE MERCHANDISE COMPANY, INC. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED) (DEBTOR-IN-POSSESSION) (IN THOUSANDS)
ACTIVITY FEBRUARY 26, 2001 THROUGH APRIL 1, 2001 ------------- Net Sales $ 67,681 Costs of merchandise sold and buying and occupancy expense 49,085 --------- Gross margin after cost of merchandise sold and buying and occupancy expenses 18,596 Selling, General and Administrative Expenses: Net Employment Expense 15,055 Net Advertising 3,451 Banking and Other Fees 978 Real Estate and Other Taxes 2,176 Supplies 443 Communication and Equipment 327 Travel 389 UCC and Other Services (667) Legal and Professional 565 Sales and Shipping 153 Insurance 596 Miscellaneous 200 Credit Card Services (45) --------- Total Selling, General and Administrative Expenses 23,621 Other expense/(income), net 738
Page 14 15 FORM OPR-5 SERVICE MERCHANDISE COMPANY, INC. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED) (DEBTOR-IN-POSSESSION) (IN THOUSANDS) Restructuring charge (credit) -- Depreciation and amortization 4,019 --------- Earnings (loss) before interest, reorganization items, and income tax (9,782) Interest expense - debt 3,687 Interest expense - capitalized leases 268 --------- Earnings (loss) before reorganization items, and income tax (13,737) Reorganization Items: Legal and Professional 2,309 Miscellaneous 248 Loss (Gain) on Disposal of Assets 399 Close Store Charges -- --------- Total Reorganization Items 2,956 Earnings (loss) before income tax (16,693) Income tax benefit -- Cumulative Effect of Change in Accounting Principles -- --------- Net earnings (loss) $ (16,693) =========
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