-----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, Q+QCdIsg3DXXvshqQq1FkOJNGy+C5Eby66244yeM/vsUU0b0tV0BTBCY5tDAOtHM 1UJDUzv33kFEV51lV9knkw== 0000950144-01-503840.txt : 20010625 0000950144-01-503840.hdr.sgml : 20010625 ACCESSION NUMBER: 0000950144-01-503840 CONFORMED SUBMISSION TYPE: 8-K PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 20010430 ITEM INFORMATION: FILED AS OF DATE: 20010622 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: 1665941 BUSINESS ADDRESS: STREET 1: 7100 SERVICE MERCHANDISE BLVD 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 g70153e8-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: April 30, 2001 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 of incorporation) (Commission File Number) (I.R.S. Employer 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 April 30, 2001 and ending May 27, 2001 (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 the 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. 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 and access liquidity from the DIP to Exit Facility and the vendor credit facility; the 3 ability of the Company to develop, prosecute, confirm and consummate on a timely basis one or more plans of reorganization with respect to the Chapter 11 Cases and to exit Chapter 11; 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 ability of the Company to successfully implement on a timely basis the 2001 Business Plan initiatives; risks associated with third parties seeking and obtaining court approval to terminate or shorten the exclusivity period for the Company to propose and confirm one or more plans of reorganization, for the appointment of a Chapter 11 trustee or to convert the Company's cases to Chapter 7 cases; the ability of the Company to reduce its workforce and related expenses and to achieve anticipated cost savings; the ability of the Company to obtain trade credit, and shipments and terms with vendors and service providers for current orders; the ability of the Company to sublease successfully additional portions of its real estate and to consummate the sale/leaseback of its headquarters; the successful consolidation of its distribution centers; the ability of the Company to access liquidity from the DIP to Exit Facility upon its anticipated emergence from Chapter 11; 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; 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 to fund and execute its business plan; the ability of the Company to attract, retain and compensate key executives and associates; the ability of the Company to attract and retain customers; uncertainties with respect to continued public trading in the Company's securities; potential adverse publicity; and uncertainties regarding real estate occupancy and development costs, including the substantial fixed investment costs associated with opening, maintaining or closing a Company store. 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: June 22, 2001 By: /s/ C. Steven Moore ------------------------------------------- C. Steven Moore Senior Vice President, Chief Administrative Officer, Secretary and General Counsel 5 EXHIBIT INDEX No. Exhibit - -------- -------------------------------------------------------------------- 99 Monthly Operating Report for the period ended May 27, 2001.
EX-99 2 g70153ex99.txt MONTHLY OPERATING REPORT 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 May 27, 2001 ----------------- COMES NOW, SERVICE MERCHANDISE COMPANY, INC. -------------------------------------- Debtor-In-Possession, and hereby submits its Monthly Operating Report for the period commencing April 30, 2001 -------------------- and ending May 27, 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: 6/15/01 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: APRIL 30, 2001 THROUGH MAY 27, 2001 1. PAYROLL
WAGES TAXES OFFICERS TITLE GROSS NET DUE PAID - ------------------------------------------------------------------------------------------------------------------------------------ S. CUSANO CHAIRMAN OF THE BOARD AND CHIEF EXECUTIVE OFFICER $50,188.10 $32,024.85 $4,498.37 $13,263.50 JANE F. GILMARTIN PRESIDENT AND CHIEF MERCHANDISING OFFICER $ 8,000.00 $ 4,886.11 $3,113.89 $ -- C. STEVEN MOORE SENIOR VICE PRESIDENT, CHIEF ADMINISTRATIVE OFFICER, $27,752.86 $18,664.50 $2,165.43 $ 6,650.70 GENERAL COUNSEL AND SECRETARY MICHAEL E. HOGREFE SENIOR VICE PRESIDENT AND CHIEF FINANCIAL OFFICER $23,958.83 $16,344.30 $1,792.73 $ 5,604.16 ERIC A. KOVATS SENIOR VICE PRESIDENT, STORES $22,000.46 $15,153.78 $1,519.89 $ 4,701.56 JERRY E. FOREMAN SENIOR VICE PRESIDENT, MERCHANDISING $25,861.43 $17,429.50 $2,003.15 $ 6,124.90 KARREN M. PRASIFKA VICE PRESIDENT, ASSISTANT GENERAL COUNSEL $14,665.05 $ 9,947.12 $1,161.05 $ 3,427.35 KENNETH A. CONWAY VICE PRESIDENT AND CONTROLLER $13,121.02 $ 9,610.15 $ 643.76 $ 1,888.33 JOE M. ELLIOTT VICE PRESIDENT, PROPERTY ADMINISTRATION $11,648.13 $ 7,893.92 $ 642.25 $ 1,819.99 KIMBERLY B. SOUTHARD ASSISTANT VICE PRESIDENT, STRATEGIC PLANNING AND $ 8,864.66 $ 5,482.31 $ 645.28 $ 1,919.49 ASSISTANT TREASURER
JANE F. GILMARTIN RECEIVED A PAYMENT IN THE AMOUNT OF $1,250,000.00 UNDER THE TERMS OF HER EMPLOYMENT AGREEMENT, WHICH IS NOT INCLUDED IN THE AMOUNT ABOVE. 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: APRIL 30, 2001 THROUGH MAY 27, 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: APRIL 30, 2001 THROUGH MAY 27, 2001 3. BANK ACCOUNTS TOTAL CASH AND CASH EQUIVALENTS CASH IN STORES AND HOME OFFICE - ------------------------------ HOME OFFICE $ 5,950 RETAIL SAFE FUNDS 1,763,291 CORPORATE ACCOUNTS 3,234,386 - ------------------ STORE DEPOSITORY ACCOUNTS - ------------------------- FIRST TENNESSEE 803,741 KEY NATIONAL BANK 452,047 BANK OF BOSTON 564,030 BANK OF BOSTON CONNECTICUT -- FIRST UNION 3,054,083 BANK ONE LOUISIANA 406,206 ABN - AMRO BANK 310,636 COMERICA BANK 303,993 AM SOUTH 447,171 BANK OF AMERICA 371,491 BANK OF OKLAHOMA 192,992 CHASE BANK OF TEXAS 1,005,183 SINGLE STORE DEPOSITORY ACCOUNTS 399,543 WELLS FARGO BANK 99,336 BANK ONE, IN 199,182 PNC BANK 831,243 OAK BROOK BANK 790,741 CREDIT CARD CASH ACCOUNTS (SALES PROCESSED BY CREDIT CARD COMPANY) 10,968,389 - ------------------------------------------------------------------ OTHER DEPOSITORY ACCOUNTS - ------------------------- SERVICE MERCHANDISE - MUSCULAR DYSTROPHY ASSOC. 65,113 OTHER CASH ACCOUNTS 3,086,181 ----------- TOTAL CASH PER GENERAL LEDGER $29,354,928 ===========
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: APRIL 30, 2001 THROUGH MAY 27, 2001 RECEIPTS AND DISBURSEMENTS (DOLLARS IN THOUSANDS)
ACTUAL ACTUAL ACTUAL ACTUAL TOTAL Monday 04/30/01 05/07/01 05/14/01 05/21/01 04/30/01 Sunday 05/06/01 05/13/01 05/20/01 05/27/01 05/27/01 -------- -------- -------- -------- -------- Receipts: Sales receipts $ 17,439 $29,322 $38,945 $25,862 $111,568 Miscellaneous receipts -- 464 -- 170 634 -------- ------- ------- ------- -------- Total available collections 17,439 29,786 38,945 26,032 112,202 Disbursements: Merchandise disbursements 11,803 10,384 8,876 9,372 40,435 Non-merchandise disbursements 12,697 9,701 15,122 9,441 46,961 -------- ------- ------- ------- -------- Total disbursements 24,500 20,085 23,998 18,813 87,396 -------- ------- ------- ------- -------- Net receipts/(disbursements) $ (7,061) $ 9,701 $14,947 $ 7,219 $ 24,806 ======== ======= ======= ======= ========
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: APRIL 30, 2001 THROUGH MAY 27, 2001 ROLLING REVISED CASH FLOW FORECAST (DOLLARS IN THOUSANDS)
ACTUAL ACTUAL FORECAST FORECAST FORECAST 05/27/01 06/10/01 07/01/01 07/29/01 08/26/01 -------- -------- -------- -------- -------- Ending total revolver balance $208,460 $203,425 $195,858 $192,964 $194,315 Term loan 60,000 60,000 60,000 60,000 60,000 Standby letters of credit 24,304 23,688 24,188 24,491 24,335 Trade letters of credit 6,621 10,615 15,309 22,535 33,747 -------- -------- -------- -------- -------- Total extensions of credit 299,385 297,728 295,355 299,990 312,397 Borrowing base 425,137 418,826 409,041 401,448 402,508 -------- -------- -------- -------- -------- Availability $125,752 $121,098 $113,686 $101,458 $ 90,111 ======== ======== ======== ======== ========
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: APRIL 30, 2001 THROUGH MAY 27, 2001 4. PAYMENTS TO PROFESSIONALS APRIL 30, 2001 THROUGH MAY 27, 2001
VENDOR # VENDOR NAME CHECK AMT. CHECK DATE CHECK # - ----------------------------------------------------------------------------------------------------------------------------- 53703 Barron and Stadfeld, PC $16.50 04/30/01 50040775 2642 Waller, Lansden, Dortch & Davis $259.80 05/02/01 50041074 67017 Barkley & Thompson $3,219.96 05/02/01 50041079 84573 Buchanan & Ingersol, PC $1,766.10 05/02/01 50041081 86237 Brusniak, Clement, Harrison & McCool, PC, Inc. $781.80 05/02/01 50041083 57117 Deloitte & Touche $66,250.00 05/08/01 50041438 57117 Deloitte & Touche $17,426.00 05/09/01 50041635 102914 Ernst & Young, LLP $5,048.00 05/10/01 50041702 57117 Deloitte & Touche $9,868.95 05/14/01 50041902 99444 Sitrick & Company, Inc. $84,490.36 05/15/01 B0024805 99459 Robert L. Berger & Associates $13,464.63 05/18/01 B0024840 94005 Donald A. Blum $2,450.00 05/24/01 50042943 101232 E & Y Capital Adivisors, LLC $220,785.00 05/25/01 B0024889 101993 Rothschild, Inc. $94,271.38 05/25/01 B0024890 71217 Bass, Berry & Sims $269,102.57 05/25/01 B0024891 98378 Skadden, Arps,Slate, Meagher & Flom $657,526.00 05/25/01 B0024892 99104 Jay Alix & Associates $124,265.22 05/25/01 B0024893 99391 Otterbourg, Steindler, Houston & Rosen, PC $213,225.75 05/25/01 B0024894 99454 Harwell, Howard, Hyne, Gabbert & Manner, PC, Inc. $43,277.45 05/25/01 B0024895
Page 7 8 FORM OPR-1 AND 2 SERVICE MERCHANDISE COMPANY, INC. AND SUBSIDIARIES CONSOLIDATED BALANCE SHEETS (UNAUDITED) (DEBTOR-IN-POSSESSION) (IN THOUSANDS)
MAY 27, APRIL 29, 2001 2001 ----------- ----------- ASSETS Current Assets: $ 29,355 $ 25,199 Cash and cash equivalents 7,433 6,435 Accounts receivable 452,689 482,707 Inventories 14,052 21,196 ----------- ----------- TOTAL CURRENT ASSETS 503,529 535,537 ----------- ----------- PROPERTY AND EQUIPMENT Owned assets, net of accumulated depreciation 356,654 358,748 Capitalized leases, net of accumulated amortization 11,402 11,568 ----------- ----------- TOTAL PROPERTY AND EQUIPMENT 368,056 370,316 ----------- ----------- Other assets and deferred charges 48,025 48,466 ----------- ----------- TOTAL ASSETS $ 919,610 $ 954,319 =========== =========== LIABILITIES AND SHAREHOLDERS' (DEFICIT) EQUITY Liabilities Not Subject To Compromise Current Liabilities: Notes payable to banks $ 208,460 $ 233,212 Accounts payable 33,678 40,727 Accrued expenses 126,965 122,573 State & local sales tax 8,126 7,956 Current maturities capitalized leases 96 96 ----------- ----------- TOTAL CURRENT LIABILITIES 377,325 404,564 ----------- -----------
Page 8 9 FORM OPR-1 AND 2 SERVICE MERCHANDISE COMPANY, INC. AND SUBSIDIARIES CONSOLIDATED BALANCE SHEETS (UNAUDITED) (DEBTOR-IN-POSSESSION) (IN THOUSANDS)
MAY 27, APRIL 29, 2001 2001 ----------- ----------- Long-Term Liabilities: Long-term debt 60,000 60,000 Capitalized lease obligations 2,355 2,363 Liabilities Subject To Compromise: Accrued restructuring costs 42,066 42,071 Capitalized lease obligations 20,855 21,123 Long-term debt 412,617 413,285 Accounts payable 198,061 198,082 Accrued expenses 72,589 71,864 ----------- ----------- Total Liabilities Subject To Compromise 746,188 746,425 TOTAL LIABILITIES 1,185,868 1,213,352 ----------- ----------- COMMITMENTS AND CONTINGENCIES SHAREHOLDERS' (DEFICIT) EQUITY Common stock 49,936 49,936 Additional paid-in-capital 5,881 5,881 Deferred compensation (170) (180) Accumulated other comprehensive loss (2,697) (2,697) Retained (deficit) earnings (319,208) (311,973) ----------- ----------- TOTAL SHAREHOLDERS' (DEFICIT) EQUITY (266,258) (259,033) TOTAL LIABILITIES AND SHAREHOLDERS' (DEFICIT) EQUITY $ 919,610 $ 954,319 =========== ===========
Page 9 10 CHAPTER 11 MONTHLY OPERATING REPORT CASE NAME: SERVICE MERCHANDISE COMPANY, INC. ET. AL. CASE NUMBER: 399-02649 THROUGH 399-02680 PERIOD: APRIL 30, 2001 THROUGH MAY 27, 2001 SUMMARY OF ACCOUNTS RECEIVABLE MONTH ENDED: MAY 27, 2001 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: APRIL 30, 2001 THROUGH MAY 27, 2001 SCHEDULE OF POST PETITION LIABILITIES-ACCOUNTS PAYABLE Month Ended: MAY 27, 2001 FORM OPR-4
Total --------- Trade Accounts Payable (Merchandise) $ 33,678 Total --------- Expense & other payables $ 126,965
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: APRIL 30, 2001 THROUGH MAY 27, 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 $ 7,915 State income tax Various Various (440) ------- SUBTOTAL $ 7,475 ------- Sales/use tax SUBTOTAL Various Various $10,416 ------- Personal property tax * Various Various 2,232 Real estate taxes * Various Various 9,800 Inventory taxes * Various Various -- Gross receipts/bus licenses * Various Various 192 Franchise taxes * Various Various 496 ------- SUBTOTAL $12,720 ------- TOTAL TAXES PAYABLE $30,611 =======
* 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: APRIL 30, 2001 THROUGH MAY 27, 2001 SCHEDULE OF POST PETITION LIABILITIES FORM OPR-4 (DOLLARS IN THOUSANDS)
DATE TOTAL DUE INCURRED DATE DUE (5/27/01 BALANCE) ---------------------------------------------------------- POST PETITION SECURED DEBT Revolver borrowings 04/14/00 04/14/04 $ 208,460 Facility standby letters of credit 04/14/00 04/14/04 24,304 Facility trade letters of credit 04/14/00 04/14/04 6,621 Term loans 04/14/00 04/14/04 60,000 --------- TOTAL EXTENSIONS OF CREDIT $ 299,385 ========= ACCRUED INTEREST PAYABLE $ 893 =========
Page 13 14 FORM OPR-5 SERVICE MERCHANDISE COMPANY, INC. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED) (DEBTOR-IN-POSSESSION) (IN THOUSANDS)
ACTIVITY APRIL 30, 2001 THROUGH MAY 27, 2001 ------------ Net Sales $ 109,094 Costs of merchandise sold and buying and occupancy expense 74,788 --------- Gross margin after cost of merchandise sold and buying and occupancy expenses 34,306 Selling, General and Administrative Expenses: Net Employment Expense 14,226 Net Advertising 12,324 Banking and Other Fees 1,799 Real Estate and Other Taxes 1,710 Supplies 504 Communication and Equipment 319 Travel 313 UCC and Other Services 252 Legal and Professional 244 Sales and Shipping 35 Insurance 445 Miscellaneous (46) Credit Card Services (40) --------- Total Selling, General and Administrative Expenses 32,085 Other expense/(income), net (34)
15 FORM OPR-5 SERVICE MERCHANDISE COMPANY, INC. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED) (DEBTOR-IN-POSSESSION) (IN THOUSANDS)
ACTIVITY APRIL 30, 2001 THROUGH MAY 27, 2001 ------------ Restructuring charge (credit) -- Depreciation and amortization 3,257 --------- Earnings (loss) before interest, reorganization items, and income tax (1,002) Interest expense - debt 3,190 Interest expense - capitalized leases 262 --------- Earnings (loss) before reorganization items, and income tax (4,454) Reorganization Items: Legal and Professional 2,390 Miscellaneous 201 Loss (Gain) on Disposal of Assets 190 Close Store Charges -- --------- Total Reorganization Items 2,781 Earnings (loss) before income tax (7,235) Income tax benefit -- Cumulative Effect of Change in Accounting Principles -- --------- Net earnings (loss) $ (7,235) =========
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