EX-99 3 g73850ex99.txt MONTHLY OPERATING REPORT EXHIBIT 99 UNITED STATES BANKRUPTCY COURT MIDDLE DISTRICT OF TENNESSEE In re: SERVICE MERCHANDISE COMPANY, INC. Case No.: 399-02649 THROUGH 399-02680 ------------------------------------ ------------------------------ Judge: PAINE --------------------------------- Chapter 11
Debtor(s) MONTHLY OPERATING REPORT FOR PERIOD ENDING December 30, 2001 --------------------------- COMES NOW, SERVICE MERCHANDISE COMPANY, INC. ----------------------------------------------------------- Debtor-In-Possession, and hereby submits its Preliminary Monthly Operating Report for the period commencing November 26, 2001 and ending December 30, 2001 as shown by the report and exhibits consisting of 10 pages and containing the following as indicated: X Monthly Reporting Questionnaire (Attachment 1) ----- Comparative Balance Sheets (Forms OPR-1 & OPR-2) ----- N/A Summary of Accounts Receivable (Form OPR-3) ----- Schedule of Postpetition Liabilities (Form OPR-4) ----- Statement of Income (Loss) (Form OPR-5) ----- I declare under penalty of perjury that this report and all the attachments are true and correct to the best of my knowledge and belief. This report is based on preliminary unaudited results, and includes those reports agreed upon as appropriate at this time between the Debtor and the U.S. Trustee. The Debtor and the U.S. Trustee have also agreed that the Debtor will file the remaining forms by February 18, 2002. 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: 1/21/02 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 CHAPTER 11 MONTHLY OPERATING REPORT MONTHLY REPORTING QUESTIONNAIRE CASE NAME: SERVICE MERCHANDISE COMPANY, INC. ET. AL. CASE NUMBER: 399-02649 THROUGH 399-02680 PERIOD: NOVEMBER 26, 2001 THROUGH DECEMBER 30, 2001 1. PAYROLL
WAGES TAXES OFFICERS TITLE GROSS NET DUE PAID ---------------------------------------------------------------------------------------------------------------------------------- S. CUSANO CHAIRMAN OF THE BOARD AND CHIEF EXECUTIVE OFFICER $ 72,309.60 $ 36,660.14 $5,814.62 $28,327.14 JANE F. GILMARTIN PRESIDENT AND CHIEF MERCHANDISING OFFICER $156,548.20 $107,822.31 $4,013.51 $44,131.33 C. STEVEN MOORE SENIOR VICE PRESIDENT, CHIEF ADMINISTRATIVE OFFICER, GENERAL COUNSEL AND SECRETARY $ 34,549.13 $ 22,796.00 $2,373.02 $ 8,585.19 MICHAEL E. HOGREFE SENIOR VICE PRESIDENT AND CHIEF FINANCIAL OFFICER $ 85,978.08 $ 59,847.70 $1,981.30 $23,425.32 ERIC A. KOVATS SENIOR VICE PRESIDENT, STORES $ 27,364.68 $ 18,489.06 $1,715.89 $ 6,056.96 KARREN M. PRASIFKA VICE PRESIDENT, ASSISTANT GENERAL COUNSEL $ 21,271.15 $ 14,134.15 $1,608.57 $ 5,311.28 KENNETH A. CONWAY VICE PRESIDENT AND CONTROLLER $ 16,434.35 $ 12,427.65 $ 830.86 $ 2,703.89 JOE M. ELLIOTT VICE PRESIDENT, PROPERTY ADMINISTRATION $ 14,642.40 $ 10,718.41 $ 811.10 $ 2,608.01 KIMBERLY B. SOUTHARD ASSISTANT VICE PRESIDENT, STRATEGIC PLANNING AND ASSISTANT TREASURER $ 11,094.70 $ 7,310.77 $ 808.82 $ 2,677.69
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 $106,250.00
The following associate received a bonus that is included the amounts above. MICHAEL E. HOGREFE $56,250.00
Page 2 CHAPTER 11 MONTHLY OPERATING REPORT MONTHLY REPORTING QUESTIONNAIRE CASE NAME: SERVICE MERCHANDISE COMPANY, INC. ET. AL. CASE NUMBER: 399-02649 THROUGH 399-02680 PERIOD: NOVEMBER 26, 2001 THROUGH DECEMBER 30, 2001 2. INSURANCE
DATE COVERAGE POLICY EXPIRATION PREMIUM COVERAGE TYPE NAME OF CARRIER AMOUNT NUMBER DATE AMOUNT THROUGH ---------------------------------------------------------------------------------------------------------------------------------- Property Fireman's Fund Insurance Co $5 Million 01MXI9761300 12/31/02 $822,500 12/31/02 Royal Indemnity Co. $5 Million RHD317182 12/31/02 $120,000 12/31/02 Westchester Fire $15 Million WXA663479-0 12/31/02 $103,000 12/31/02 Allianz Insurance Co $10 Million CLP13001444 12/31/02 $ 31,781 12/31/02 Commonwealth Ins Co $15 Million CLP 10333 12/31/02 $ 47,672 12/31/02 Allianz Insurance Co $50 Million CLP3001444 12/31/02 $ 60,000 12/31/02 Allianz Insurance Co $25 Million CLP3001444 12/31/02 $ 10,159 12/21/02 Boiler & Machinery Hartford Steam Boiler $10 Million FBP4914359 12/31/02 $ 20,248 12/31/02 Transit Fireman's Fund Insurance Co $1 Million OIMXI97600751 12/31/02 $ 10,000 12/31/02 Ocean Cargo Fireman's Fund Insurance Co $10 Million OC95600601 12/31/02 $ 40,000 12/31/02 General Liability Ace American Ins Co $5 Million XSLG2057804A 12/31/02 $250,000 12/31/02 Tenants Liability-AOS Pacific Employers Ins. Co. $5 Million HDOG20578129 12/31/02 Incl. In GL 12/31/02 Tenants Liability-First Union Pacific Employers Ins. Co. $5 Million HODG20578087 12/31/02 Incl. In GL 12/31/02 Workers' Compensation-AOS Pacific Employers Ins Co Statutory WLRC43124456 12/31/02 $201,195 12/31/02 WC Excess Ace American Ins Co Statutory XWC014136 12/31/02 $ 24,034 12/31/02 Workers' Compensation-DAS Pacific Employers Ins Co Statutory WLRC43124493 12/31/02 Included 12/31/02 WC Retro Pacific Employers Ins. Co. Statutory SCFC43031673 12/31/02 Included 12/31/02 WC Contractual Indemnity Illinois Union Insurance Co Statutory CTPG20577794 12/31/02 $ 15,750 12/31/02 Auto Pacific Employers Ins Co $1 Million ISAH07969661 12/31/02 $ 43,572 12/31/02 Umbrella Ohio Casualty Group $25 Million BX(02)O52805120 12/31/02 $104,850 12/31/02 Excess Liability American Guarantee & Lia. Ins. $50 Million AEC287610704 12/31/02 $ 50,000 12/31/02 Excess Liability Great American Assurance $25 Million EXC5752226 12/31/02 $ 37,500 12/31/02 International Ace American Ins Co $1 Million PHF051491 12/31/02 $ 2,500 12/31/02 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 CHAPTER 11 MONTHLY OPERATING REPORT MONTHLY REPORTING QUESTIONNAIRE CASE NAME: SERVICE MERCHANDISE COMPANY, INC. ET. AL. CASE NUMBER: 399-02649 THROUGH 399-02680 PERIOD: NOVEMBER 26, 2001 THROUGH DECEMBER 30, 2001 3. BANK ACCOUNTS TOTAL CASH AND CASH EQUIVALENTS CASH IN STORES AND HOME OFFICE HOME OFFICE $ 4,950 RETAIL SAFE FUNDS 5,094,026 CORPORATE ACCOUNTS 6,362,405 STORE DEPOSITORY ACCOUNTS FIRST TENNESSEE 1,428,695 KEY NATIONAL BANK 1,687,736 FLEET BOSTON 510,973 FIRST UNION 5,065,679 BANK ONE LOUISIANA 1,753,154 ABN - AMRO BANK 1,049,788 COMERICA BANK 293,168 AM SOUTH 1,744,047 BANK OF AMERICA 518,275 BANK OF OKLAHOMA 628,861 CHASE BANK OF TEXAS 1,782,137 SINGLE STORE DEPOSITORY ACCOUNTS 889,896 WELLS FARGO BANK 219,619 BANK ONE, IN 694,338 PNC BANK 2,031,004 OAK BROOK BANK 3,214,950 CREDIT CARD CASH ACCOUNTS (SALES PROCESSED BY CREDIT CARD COMPANY) (1,275,394) OTHER DEPOSITORY ACCOUNTS SERVICE MERCHANDISE - MUSCULAR DYSTROPHY ASSOC 92,930 OTHER CASH ACCOUNTS 73,809 ------------ TOTAL CASH PER GENERAL LEDGER $ 33,865,046 ============
Page 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: NOVEMBER 26, 2001 THROUGH DECEMBER 30, 2001 CASH FLOW STATEMENT (DOLLARS IN THOUSANDS)
Actual 12/30/01 -------- Ending total revolver balance $149,699 Term loan 60,000 Standby letters of credit 20,727 Trade letters of credit 29,210 -------- Total extensions of credit 259,636 Borrowing base 433,322 -------- Availability $173,686 ========
Page 5 CHAPTER 11 MONTHLY OPERATING REPORT MONTHLY REPORTING QUESTIONNAIRE CASE NAME: SERVICE MERCHANDISE COMPANY, INC. ET. AL. CASE NUMBER: 399-02649 THROUGH 399-02680 PERIOD: NOVEMBER 26, 2001 THROUGH DECEMBER 30, 2001 SCHEDULE OF POST PETITION LIABILITIES FORM OPR-4 (DOLLARS IN THOUSANDS)
DATE TOTAL DUE INCURRED DATE DUE (12/30/01 BALANCE) ----------------------------------------------------------------- POST PETITION SECURED DEBT Revolver borrowings 04/14/00 04/14/04 $ 149,699 Facility standby letters of credit 04/14/00 04/14/04 20,727 Facility trade letters of credit 04/14/00 04/14/04 29,210 Term loans 04/14/00 04/14/04 60,000 ---------- TOTAL EXTENSIONS OF CREDIT $ 259,636 ========== ACCRUED INTEREST PAYABLE $ 1,035 =========
Page 6 CHAPTER 11 MONTHLY OPERATING REPORT MONTHLY REPORTING QUESTIONNAIRE CASE NAME: SERVICE MERCHANDISE COMPANY, INC. ET. AL. CASE NUMBER: 399-02649 THROUGH 399-02680 PERIOD: NOVEMBER 26, 2001 THROUGH DECEMBER 30, 2001 4. PAYMENTS TO PROFESSIONALS NOVEMBER 26, 2001 THROUGH DECEMBER 30, 2001
Vendor # Vendor Name Check Amt. Check Date Check # ---------------------------------------------------------------------------------------------------------------------- 71217 Bass, Berry and Sims $164,293.59 11/26/01 B0026254 99391 Otterbourg, Steindler, Houston and Rosen, PC $ 94,027.74 11/26/01 B0026255 99459 Robert L. Berger and Associates $ 17,237.50 11/28/01 B0026265 99329 Aegis Property Tax Specialists $ 67.07 12/04/01 50060132 99329 Aegis Property Tax Specialists $ 14,212.75 12/04/01 50060133 44013 McCarter and English $ 3,022.87 12/05/01 50060242 67017 Barkley and Thompson $ 373.76 12/05/01 50060243 84573 Buchanan and Ingersoll $ 30.70 12/05/01 50060246 85611 Wright, Robinson, Osthimer and Tatum $ 8.42 12/05/01 50060247 71403 Seyfarth, Shaw, Fairweather and Geraldoson $ 887.51 12/06/01 50060301 93547 D'Assaro and Hall $ 261.26 12/06/01 50060307 95912 Kightlinger and Gray $ 973.00 12/06/01 50060314 44013 McCarter and English $ 3,313.27 12/06/01 50060348 47653 Hoge, Fenton, Jones and Appel, Inc. $ 264.50 12/06/01 50060349 95913 Locke, Reynolds, Boyd and Weisell $ 1,312.40 12/06/01 50060352 44013 McCarter and English $ 5,803.91 12/07/01 50060551 48779 Loss, Pavone and Orel $ 637.50 12/07/01 50060553 56784 Cotter, Cotter and Sohon, PC $ 5,000.00 12/07/01 50060555 67017 Barkley and Thompson $ 677.95 12/07/01 50060557 71403 Seyfarth, Shaw, Fairweather and Geraldoson $ 22,353.77 12/07/01 50060559 84740 Taft, Stettinius and Hollister $ 5,933.97 12/07/01 50060560 93547 D'Assaro and Hall $ 5,028.89 12/07/01 50060563 93547 D'Assaro and Hall $ 2,661.05 12/11/01 50060745 27428 Sharretts, Paley, Carter and Blauvert, PC $ 650.00 12/12/01 50060887 95913 Locke, Reynolds, Boyd and Weisell $ 164.65 12/12/01 50060911 71403 Seyfarth, Shaw, Fairweather and Geraldoson $ 481.98 12/12/01 50060945 84573 Buchanan and Ingersoll $ 18.50 12/12/01 50060949 95384 Deloitte and Touche, LLP $ 75,090.08 12/13/01 50061092 86237 Brusniak, Clement, Harrison and McCool, PC $ 1,044.90 12/17/01 50061289 101606 Service Real Estate Venture $ 321.40 12/17/01 B0026401 98378 Skadden, Arps, Slate, Meagher and Flom $451,099.00 12/17/01 B0026403 101606 Service Real Estate Venture $ 48,366.00 12/17/01 B0026408 99444 Sitrick and Company $ 3,061.41 12/17/01 B0026409 98378 Skadden, Arps, Slate, Meagher and Flom $364,238.00 12/17/01 B0026440 99444 Sitrick and Company $ 14,040.76 12/17/01 B0026449 50995 Brann and Isaacson $ 707.30 12/18/01 50061389 99459 Robert L. Berger and Associates $ 29,873.85 12/18/01 B0026451 44013 McCarter and English $ 622.20 12/19/01 50061469 99104 Jay Alix and Associates $ 16,492.37 12/26/01 B0026411 71217 Bass, Berry and Sims $164,686.66 12/26/01 B0026442 57117 Deloitte and Touche $ 18,000.00 12/28/01 50062411
Page 7 CHAPTER 11 MONTHLY OPERATING REPORT CASE NAME: SERVICE MERCHANDISE COMPANY, INC. ET. AL. CASE NUMBER: 399-02649 THROUGH 399-02680 PERIOD: NOVEMBER 26, 2001 THROUGH DECEMBER 30, 2001 SUMMARY OF ACCOUNTS RECEIVABLE MONTH ENDED: DECEMBER 30, 2001 FORM OPR-3 NOT APPLICABLE Page 8 CHAPTER 11 MONTHLY OPERATING REPORT MONTHLY REPORTING QUESTIONNAIRE CASE NAME: SERVICE MERCHANDISE COMPANY, INC. ET. AL. CASE NUMBER: 399-02649 THROUGH 399-02680 PERIOD: NOVEMBER 26, 2001 THROUGH DECEMBER 30, 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 $ 1,600 State income tax Various Various -- ------- SUBTOTAL $ 1,600 ------- Sales/use tax SUBTOTAL * Various Various $11,100 ------- Personal property tax * Various Various $ 804 Real estate taxes * Various Various 9,791 Inventory taxes * Various Various -- Gross receipts/bus licenses * Various Various 18 Franchise taxes * Various Various 759 ------- SUBTOTAL $11,372 ------- ------- TOTAL TAXES PAYABLE $24,072 =======
* liability included in accrued expenses on OPR-2 ** tax reserve Page 9 CHAPTER 11 MONTHLY OPERATING REPORT MONTHLY REPORTING QUESTIONNAIRE CASE NAME: SERVICE MERCHANDISE COMPANY, INC. ET. AL. CASE NUMBER: 399-02649 THROUGH 399-02680 PERIOD: NOVEMBER 26, 2001 THROUGH DECEMBER 30, 2001 RECEIPTS AND DISBURSEMENTS (DOLLARS IN THOUSANDS)
ACTUAL ACTUAL ACTUAL ACTUAL ACTUAL TOTAL MONDAY 11/26/01 12/03/01 12/10/01 12/17/01 12/24/01 11/26/01 SUNDAY 12/02/01 12/09/01 12/16/01 12/23/01 12/30/01 12/30/01 -------- -------- -------- -------- -------- -------- Receipts: Sales receipts $46,405 $44,872 $58,856 $84,397 $ 95,333 $329,863 Miscellaneous receipts -- 572 -- -- -- 572 ------- ------- ------- ------- -------- -------- Total available collections 46,405 45,444 58,856 84,397 95,333 330,435 Disbursements: Merchandise disbursements 18,709 14,715 12,727 11,570 3,353 61,074 Non-merchandise disbursements 11,418 17,362 14,205 16,927 12,560 72,472 ------- ------- ------- ------- -------- -------- Total disbursements 30,127 32,077 26,932 28,497 15,913 133,546 ------- ------- ------- ------- -------- -------- Net receipts/(disbursements) $16,278 $13,367 $31,924 $55,900 $ 79,420 $196,889 ======= ======= ======= ======= ======== ========
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