-----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, T0v3BXUk7EViY7NPWuhZelltk/JLpJ222rLsaeIBrcLpghhDCIVlj3NrymO+nXWh zmhtYoowVe4IMLeSsU9kOw== 0000950144-01-504861.txt : 20010727 0000950144-01-504861.hdr.sgml : 20010727 ACCESSION NUMBER: 0000950144-01-504861 CONFORMED SUBMISSION TYPE: 8-K PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 20010528 ITEM INFORMATION: ITEM INFORMATION: FILED AS OF DATE: 20010726 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: 1689582 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 g70671e8-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: May 28, 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 May 28, 2001 and ending July 1, 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. Item 7. Financial Statements, Pro Forma Financial Information and Exhibits - -------------------------------------------------------------------------------- (c) Exhibits 99. Monthly Operating Report for period ended July 1, 2001. 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: July 25, 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 July 1, 2001.
EX-99 2 g70671ex99.txt MONTHLY OPERATING REPORT FOR PERIOD ENDED 7/1/01 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 July 1, 2001 ------------------ COMES NOW, SERVICE MERCHANDISE COMPANY, INC. -------------------------------------------- Debtor-In-Possession, and hereby submits its Monthly Operating Report for the period commencing May 28, 2001 and ending July 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: 7/23/01 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: MAY 28, 2001 THROUGH JULY 1, 2001 1. Payroll
WAGES TAXES OFFICERS TITLE GROSS NET DUE PAID - ------------------------------------------------------------------------------------------------------------------------------------ S. CUSANO CHAIRMAN OF THE BOARD AND CHIEF EXECUTIVE OFFICER $ 90,871.60 $ 59,566.53 $5,147.07 $ 25,644.80 JANE F. GILMARTIN PRESIDENT AND CHIEF MERCHANDISING OFFICER $ 362,500.00 $248,873.69 $3,350.71 $110,275.59 C. STEVEN MOORE SENIOR VICE PRESIDENT, CHIEF ADMINISTRATIVE OFFICER, GENERAL COUNSEL AND SECRETARY $ 34,483.63 $ 23,257.92 $2,108.22 $ 8,791.94 MICHAEL E. HOGREFE SENIOR VICE PRESIDENT AND CHIEF FINANCIAL OFFICER $ 29,672.58 $ 20,291.05 $1,744.62 $ 7,314.81 ERIC A. KOVATS SENIOR VICE PRESIDENT, STORES $ 27,288.93 $ 18,854.09 $1,479.15 $ 6,193.09 JERRY E. FOREMAN SENIOR VICE PRESIDENT, MERCHANDISING $1,121,813.02 $790,418.95 $ -- $331,234.11 KARREN M. PRASIFKA VICE PRESIDENT, ASSISTANT GENERAL COUNSEL $ 18,318.90 $ 12,469.30 $1,130.29 $ 4,569.81 JOE M. ELLIOTT VICE PRESIDENT, PROPERTY ADMINISTRATION $ 14,532.75 $ 9,892.60 $ 625.95 $ 2,426.65 KENNETH A. CONWAY VICE PRESIDENT AND CONTROLLER $ 16,390.25 $ 12,032.50 $ 627.53 $ 2,517.77 KIMBERLY B. SOUTHARD ASSISTANT VICE PRESIDENT, STRATEGIC PLANNING AND ASSISTANT TREASURER $ 11,076.20 $ 6,864.53 $ 634.99 $ 2,559.33
The following associate received retroactive pay, effective 03/17/01, that is included in the amounts above. S. CUSANO $ 24,370.00 The following associate received a payment, in accordance with the terms of her employment agreement, that is included in the amounts above. JANE F. GILMARTIN $ 312,500.00 The following associate received severance, a stay bonus and terminated vacation pay that is included the amounts above. JERRY E. FOREMAN $1,032,200.00 Severance $ 60,937.50 Stay Bonus $ 9,154.69 Terminated Vacation 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: MAY 28, 2001 THROUGH JULY 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: MAY 28, 2001 THROUGH JULY 1, 2001 3. BANK ACCOUNTS TOTAL CASH AND CASH EQUIVALENTS CASH IN STORES AND HOME OFFICE - ------------------------------ HOME OFFICE $ 5,950 RETAIL SAFE FUNDS 1,760,255 CORPORATE ACCOUNTS 3,394,961 - ------------------ STORE DEPOSITORY ACCOUNTS - ------------------------- FIRST TENNESSEE 484,836 KEY NATIONAL BANK 278,669 BANK OF BOSTON 419,660 BANK OF BOSTON CONNECTICUT - FIRST UNION 2,313,952 BANK ONE LOUISIANA 259,116 ABN - AMRO BANK 120,834 COMERICA BANK 184,672 AM SOUTH 271,249 BANK OF AMERICA 255,222 BANK OF OKLAHOMA 123,689 CHASE BANK OF TEXAS 653,877 SINGLE STORE DEPOSITORY ACCOUNTS 250,375 WELLS FARGO BANK 45,600 BANK ONE, IN 63,945 PNC BANK 439,790 OAK BROOK BANK 508,680 CREDIT CARD CASH ACCOUNTS (SALES PROCESSED BY CREDIT CARD COMPANY) 7,560,378 - ------------------------------------------------------------------ OTHER DEPOSITORY ACCOUNTS - ------------------------- SERVICE MERCHANDISE - MUSCULAR DYSTROPHY ASSOC. 69,726 OTHER CASH ACCOUNTS 69,714 ------------ TOTAL CASH PER GENERAL LEDGER $ 19,535,150 ============
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: MAY 28, 2001 THROUGH JULY 1, 2001 RECEIPTS AND DISBURSEMENTS (DOLLARS IN THOUSANDS)
ACTUAL ACTUAL ACTUAL ACTUAL ACTUAL TOTAL Monday 05/28/01 06/04/01 06/11/01 06/18/01 06/25/01 05/28/01 Sunday 06/03/01 06/10/01 06/17/01 06/24/01 07/01/01 07/01/01 ------ -------- -------- -------- -------- -------- -------- Receipts: Sales receipts $18,303 $19,662 $20,132 $22,366 $19,265 $ 99,728 Miscellaneous receipts -- 2,704 1,011 -- -- 3,715 ------- ------- ------- ------- ------- -------- Total available collections 18,303 22,366 21,143 22,366 19,265 103,443 Disbursements: Merchandise disbursements 6,583 8,410 8,603 7,718 6,072 $ 37,386 Non-merchandise disbursements 7,767 12,911 9,804 9,956 11,672 52,110 ------- ------- ------- ------- ------- -------- Total disbursements 14,350 21,321 18,407 17,674 17,744 89,496 ------- ------- ------- ------- ------- -------- Net receipts/(disbursements) $ 3,953 $ 1,045 $ 2,736 $ 4,692 $ 1,521 $ 13,947 ======= ======= ======= ======= ======= ========
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: MAY 28, 2001 THROUGH JULY 1, 2001 ROLLING REVISED CASH FLOW FORECAST (DOLLARS IN THOUSANDS)
ACTUAL ACTUAL FORECAST FORECAST FORECAST 07/01/01 07/15/01 07/29/01 08/26/01 09/30/01 -------- -------- -------- -------- -------- Ending total revolver balance $194,844 $196,778 $189,707 $185,169 $201,817 Term loan 60,000 60,000 60,000 60,000 60,000 Standby letters of credit 24,188 24,032 24,491 24,335 24,179 Trade letters of credit 15,309 25,759 32,226 26,907 28,926 -------- -------- -------- -------- -------- Total extensions of credit 294,341 306,569 306,424 296,411 314,922 Borrowing base 415,070 417,644 398,025 387,039 422,840 -------- -------- -------- -------- -------- Availability $120,729 $111,075 $ 91,601 $ 90,628 $107,918 ======== ======== ======== ======== ========
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: MAY 28, 2001 THROUGH JULY 1, 2001 4. Payments to Professionals May 28, 2001 through July 1, 2001
VENDOR # VENDOR NAME CHECK AMT. CHECK DATE CHECK # - --------------------------------------------------------------------------------------------- 57117 Deloitte & Touche $ 15,526.00 05/29/01 50043297 57117 Deloitte & Touche $ 18,000.00 05/30/01 50043402 101730 CBIZ Property Tax Solutions, Inc. $ 14,318.75 06/04/01 50043899 93547 D'Assaro and Hall $ 4,362.07 06/05/01 50043976 95913 Locke Reynolds, LLP $ 820.52 06/05/01 50043979 47653 Hoge, Fenton, Jones & Appel, Inc. $ 500.00 06/06/01 50044119 48779 Loss, Pavone & Orel $ 75.00 06/06/01 50044120 67017 Barkley & Thompson $ 3,552.90 06/06/01 50044121 71403 Seyfarth, Shaw, Fairweather & Geraldson $ 1,968.53 06/06/01 50044122 84573 Buchanan & Ingersoll, PC $ 175.85 06/06/01 50044124 84740 Taft, Stettinius & Hollister $ 113.03 06/06/01 50044125 95912 Kightlinger & Gray $ 85.70 06/06/01 50044127 99329 Aegis Property Tax Specialists $ 14,787.93 06/06/01 50044146 71403 Seyfarth, Shaw, Fairweather & Geraldson $ 1,160.07 06/07/01 50044243 96684 Sherbow & Mitchell, PC $ 300.00 06/07/01 50044245 99329 Aegis Property Tax Specialists $ 7,340.32 06/07/01 50044262 99329 Aegis Property Tax Specialists $ 5,804.69 06/07/01 50044263 95913 Locke Reynolds, LLP $ 1,275.78 06/11/01 50044500 101606 Service Real Estate Venture $ 4,735.57 06/15/01 B0025041 99459 Robert L. Berger & Associates $ 12,531.32 06/18/01 B0025067 99444 Sitrick & Company, Inc. $ 5,971.57 06/19/01 B0025069 71217 Bass, Berry & Sims $218,974.96 06/19/01 B0025071 57117 Deloitte & Touche $ 18,000.00 06/21/01 50045458 57117 Deloitte & Touche $ 11,033.00 06/25/01 50045817 98176 Price, Waterhouse, Coopers, LLC $118,050.00 06/25/01 50045825 86237 Brusniak, Clement, Harrison & McCool PC, Inc. $ 2,012.28 06/25/01 50045829 57117 Deloitte & Touche $ 8,099.69 06/26/01 50045886 101232 E & Y Capiral Advisors, LLC $ 76,075.00 06/28/01 B0025114 101993 Rothschild, Inc. $ 88,519.73 06/28/01 B0025115 99104 Jay Alix & Associates $ 61,184.44 06/28/01 B0025116 99391 Otterbourg, Steindler, Houston & Rosen, PC $ 91,946.09 06/28/01 B0025117 99454 Harwell, Howard, Hyne, Gabbert & Manner, PC $ 17,075.68 06/28/01 B0025118 101232 E & Y Capiral Advisors, LLC $ 90,509.00 06/28/01 B0025135 98378 Skadden, Arps, Slate, Meagher & Flom $356,459.00 06/29/01 B0025128
Page 7 8 FORM OPR-1 AND 2 SERVICE MERCHANDISE COMPANY, INC. AND SUBSIDIARIES CONSOLIDATED BALANCE SHEETS (UNAUDITED) (DEBTOR-IN-POSSESSION) (IN THOUSANDS)
JULY 01, MAY 27, 2001 2001 ----------- ----------- ASSETS Current Assets: $ 19,535 $ 29,355 Cash and cash equivalents 6,834 7,433 Accounts receivable 431,746 452,689 Inventories 12,889 14,052 ----------- ----------- TOTAL CURRENT ASSETS 471,004 503,529 ----------- ----------- PROPERTY AND EQUIPMENT Owned assets, net of accumulated depreciation 353,893 356,654 Capitalized leases, net of accumulated amortization 11,193 11,402 ----------- ----------- TOTAL PROPERTY AND EQUIPMENT 365,086 368,056 ----------- ----------- Other assets and deferred charges 49,066 48,025 ----------- ----------- TOTAL ASSETS $ 885,156 $ 919,610 =========== =========== LIABILITIES AND SHAREHOLDERS' (DEFICIT) EQUITY Liabilities Not Subject To Compromise Current Liabilities: Notes payable to banks $ 194,844 $ 208,460 Accounts payable 31,001 33,678 Accrued expenses 123,531 126,965 State & local sales tax 7,886 8,126 Current maturities capitalized leases 97 96 ----------- ----------- TOTAL CURRENT LIABILITIES 357,359 377,325 ----------- -----------
Page 8 9 FORM OPR-1 AND 2 SERVICE MERCHANDISE COMPANY, INC. AND SUBSIDIARIES CONSOLIDATED BALANCE SHEETS (UNAUDITED) (DEBTOR-IN-POSSESSION) (IN THOUSANDS)
JULY 01, MAY 27, 2001 2001 ----------- ----------- Long-Term Liabilities: Long-term debt 60,000 60,000 Capitalized lease obligations 2,346 2,355 Liabilities Subject To Compromise: Accrued restructuring costs 42,077 42,066 Capitalized lease obligations 20,584 20,855 Long-term debt 411,408 412,617 Accounts payable 198,712 198,061 Accrued expenses 73,147 72,589 ----------- ----------- Total Liabilities Subject To Compromise 745,928 746,188 TOTAL LIABILITIES 1,165,633 1,185,868 ----------- ----------- COMMITMENTS AND CONTINGENCIES SHAREHOLDERS' (DEFICIT) EQUITY Common stock 49,936 49,936 Additional paid-in-capital 5,881 5,881 Deferred compensation (158) (170) Accumulated other comprehensive loss (2,545) (2,697) Retained (deficit) earnings (333,591) (319,208) ----------- ----------- TOTAL SHAREHOLDERS' (DEFICIT) EQUITY (280,477) (266,258) TOTAL LIABILITIES AND SHAREHOLDERS' (DEFICIT) EQUITY $ 885,156 $ 919,610 =========== ===========
Page 9 10 CHAPTER 11 MONTHLY OPERATING REPORT CASE NAME: SERVICE MERCHANDISE COMPANY, INC. ET. AL. CASE NUMBER: 399-02649 THROUGH 399-02680 PERIOD: MAY 28, 2001 THROUGH JULY 1, 2001 SUMMARY OF ACCOUNTS RECEIVABLE MONTH ENDED: JULY 1, 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: MAY 28, 2001 THROUGH JULY 1, 2001 SCHEDULE OF POST PETITION LIABILITIES-ACCOUNTS PAYABLE MONTH ENDED: JULY 1, 2001 FORM OPR-4
TOTAL -------- Trade Accounts Payable (Merchandise) $ 31,001
TOTAL -------- Expense & other payables $ 123,531
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: MAY 28, 2001 THROUGH JULY 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 $ 7,919 State income tax Various Various (558) -------- SUBTOTAL $ 7,361 -------- Sales/use tax SUBTOTAL * Various Various $ 9,011 -------- Personal property tax * Various Various $ 2,546 Real estate taxes * Various Various 11,072 Inventory taxes * Various Various -- Gross receipts/bus licenses * Various Various 231 Franchise taxes * Various Various 442 -------- SUBTOTAL $ 14,291 -------- TOTAL TAXES PAYABLE $ 30,663 ========
* 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: MAY 28, 2001 THROUGH JULY 1, 2001 SCHEDULE OF POST PETITION LIABILITIES FORM OPR-4 (DOLLARS IN THOUSANDS)
DATE TOTAL DUE INCURRED DATE DUE (7/01/01 BALANCE) ------------------------------------------ POST PETITION SECURED DEBT Revolver borrowings 04/14/00 04/14/04 $ 194,844 Facility standby letters of credit 04/14/00 04/14/04 24,188 Facility trade letters of credit 04/14/00 04/14/04 18,272 Term loans 04/14/00 04/14/04 60,000 --------- TOTAL EXTENSIONS OF CREDIT $ 297,304 ========= ACCRUED INTEREST PAYABLE $ 1,163 =========
Page 13 14 FORM OPR 5 SERVICE MERCHANDISE COMPANY, INC. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED) (DEBTOR-IN-POSSESSION) (IN THOUSANDS)
ACTIVITY ACTIVITY MAY 28, 2001 MAY 30, 2000 THROUGH THROUGH JULY 1, JULY 1, 2001 2001 -------- --------- Net Sales $ 87,936 $ 156,660 Costs of merchandise sold and buying and occupancy expense 63,629 139,135 -------- --------- Gross margin after cost of merchandise sold and buying and occupancy expenses 24,307 17,525 Selling, General and Administrative Expenses: Net Employment Expense 15,231 33,922 Net Advertising 5,710 8,335 Banking and Other Fees 1,302 2,324 Real Estate and Other Taxes 2,114 2,315 Supplies 795 1,179 Communication and Equipment 314 363 Travel 443 665 UCC and Other Services (108) 277 Legal and Professional 340 312 Sales and Shipping 288 79 Insurance 608 773 Miscellaneous (80) (58) Credit Card Services (35) (54) -------- --------- Total Selling, General and Administrative Expenses 26,922 50,432 Other expense/(income), net (19) 156
Page 14 15 FORM OPR 5 SERVICE MERCHANDISE COMPANY, INC. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED) (DEBTOR-IN-POSSESSION) (IN THOUSANDS)
ACTIVITY ACTIVITY MAY 28, 2001 MAY 30, 2000 THROUGH THROUGH JULY 1, JULY 1, 2001 2001 -------- --------- Restructuring charge (credit) -- (838) Depreciation and amortization 4,043 3,856 -------- --------- Earnings (loss) before interest, reorganization items, and income tax (6,639) (36,081) Interest expense - debt 3,561 2,988 Interest expense - capitalized leases 260 281 -------- --------- Earnings (loss) before reorganization items, and income tax (10,460) (39,350) Reorganization Items: Legal and Professional 3,057 6,922 Miscellaneous 334 681 Loss (Gain) on Disposal of Assets 536 (275) Close Store Charges -- -- -------- --------- Total Reorganization Items 3,927 7,328 Earnings (loss) before income tax (14,387) (46,678) Income tax benefit 4 -- Cumulative Effect of Change in Accounting Principles -- -- -------- --------- Net earnings (loss) $(14,383) $ (46,678) ======== =========
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