-----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, IK1nbyAWNeZ7XcncKpJmDBBYgKZTrzphi9UrRzXJ7TzE/aDRFkS4fcnh4uXDMKy1 okWNaIqc/h4MjqGNngjywQ== 0000950144-02-006090.txt : 20020529 0000950144-02-006090.hdr.sgml : 20020529 20020529122405 ACCESSION NUMBER: 0000950144-02-006090 CONFORMED SUBMISSION TYPE: 8-K PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 20020401 ITEM INFORMATION: Other events ITEM INFORMATION: Financial statements and exhibits FILED AS OF DATE: 20020529 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: 1934 Act SEC FILE NUMBER: 001-09223 FILM NUMBER: 02664440 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 g76605e8vk.htm SERVICE MERCHANDISE COMPANY,INC. e8vk
Table of Contents

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 1, 2002

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)

 

Item 5. Other Events
Item 7. Financial Statements, Pro Forma Financial Information and Exhibits
SIGNATURES
EXHIBIT INDEX
PARTIAL MONTHLY OPERATING REPORT

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Item 5. Other Events

     The Company has filed its monthly operating report for the period commencing April 1, 2002 and ended April 28, 2002 (the “Operating Report”) with the Bankruptcy Court 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, a copy of which is attached hereto as Exhibit 99.

     The Company cautions readers not to place undue reliance upon the information contained in the Operating Report. The Operating Report contains unaudited information, and is in a format prescribed by the applicable bankruptcy laws. The financial statements and schedules related to the Company included in the Operating Report have not been prepared on a liquidation basis in accordance with generally accepted accounting principles (“GAAP”). Preparation of the financial statements and schedules on a liquidation basis of accounting would result in material adjustments to the financial statements and schedules. Consequently, no representation is made regarding the sufficiency of the financial statements and schedules. The Company cautions readers not to place undue reliance on the financial statements and schedules contained herein.

     There can be no assurance that the Operating Report is complete in all material respects. The Operating Report also contains information for periods which may be shorter or otherwise different from those contained in standard reports filed pursuant to the Exchange Act. Moreover, the Operating Report and other communications from the Company may include forward-looking statements subject to various assumptions regarding the Company’s performance or its anticipated liquidation or anticipated distributions that may not be realized and are subject to significant business, judicial, economic and competitive uncertainties and potential 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. Actual results may differ materially from that contemplated in any forward-looking statement and the Company undertakes no obligation to update or revise any such statement or Operating Report.

     The results of the Company’s planned liquidation and related distributions and 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: matters affecting the timing and amounts of anticipated distributions to creditors; the ability of the Company to maximize asset value and control expenses; the ability of the Company to comply with the terms of the DIP to Exit Facility; potential adverse developments with respect to the Company’s activities; competitive pressures from other retailers, including specialty retailers and discount stores, which may affect the effectiveness of the planned liquidation; 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 retain and compensate key executives and associates; potential adverse publicity; and real estate costs, including the substantial fixed investment costs associated with disposing of Company stores.

 

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Item 7. Financial Statements, Pro Forma Financial Information and Exhibits

     (c)  Exhibits

     
99   Monthly Operating Report for period ended April 28, 2002.

 

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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: May 28, 2002   By: /s/ C. Steven Moore
C. Steven Moore
Senior Vice President, Chief Administrative
Officer, Secretary and General Counsel

 

Table of Contents

EXHIBIT INDEX

             
No.   Exhibit        
 
       
99   Partial Monthly Operating Report for the period ended January 27, 2002.

  EX-99 3 g76605exv99.txt PARTIAL MONTHLY OPERATING REPORT 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 April 28, 2002 -------------------- COMES NOW, SERVICE MERCHANDISE COMPANY, INC. -------------------------------------------- Debtor-In-Possession, and hereby submits its Preliminary Monthly Operating Report for the period commencing April 1, 2002 and ending April 28, 2002 ------------- -------------- 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. On January 18, 2002, the United States Bankruptcy Court for the Middle District of Tennessee, Nashville Division (the "Bankruptcy Court") approved the request of Service Merchandise Company, Inc. and its Subsidiaries (the "Company") to immediately begin liquidating the inventory at all of its stores and to conduct store closing sales on a final basis and to discontinue operations at the stores. The financial statements and schedules related to the Company included herein have not been prepared on a liquidation basis in accordance with generally accepted accounting principles ("GAAP"). The information needed to prepare the financial statements and schedules on a liquidation basis is not currently available to management. Attempting to obtain such information necessary to prepare the financial statements and schedules on a liquidation basis would cause undue hardship and expense to the Company. Preparation of the financial statements and schedules on a liquidation basis of accounting would result in material adjustments to the financial statements and schedules. Consequently, no representation is made regarding the sufficiency of the financial statements and schedules. The Company cautions readers not to place undue reliance on the financial statements and schedules contained herein. This report includes those reports agreed upon as appropriate at this time between the Debtor and the U.S. Trustee. 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: May 20, 2002 DEBTOR-IN-POSSESSION ------------ By: /s/ Michael E. Hogrefe ------------------------------------------------------ Name and Title: MICHAEL E. HOGREFE, SR. VP AND CHIEF FINANCIAL OFFICER ------------------------------------------------------ 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: APRIL 1, 2002 THROUGH APRIL 28, 2002 1. Payroll
WAGES TAXES OFFICERS TITLE GROSS NET DUE PAID - ------------------------------------------------------------------------------------------------------------------------------------ S. CUSANO CHAIRMAN OF THE BOARD $57,500.00 $37,131.77 $5,092.06 $15,276.17 C. STEVEN MOORE SENIOR VICE PRESIDENT, CHIEF ADMINISTRATIVE OFFICER, GENERAL COUNSEL AND SECRETARY $27,759.41 $17,979.97 $1,920.73 $ 5,884.96 MICHAEL E. HOGREFE SENIOR VICE PRESIDENT AND CHIEF FINANCIAL OFFICER $23,903.33 $15,794.29 $1,597.10 $ 5,078.99 JOE M. ELLIOTT VICE PRESIDENT, PROPERTY ADMINISTRATION $11,648.13 $ 7,667.67 $ 790.64 $ 2,248.05 KIMBERLY B. SOUTHARD ASSISTANT VICE PRESIDENT, STRATEGIC PLANNING AND ASSISTANT TREASURER $ 8,864.66 $ 5,527.28 $ 794.78 $ 2,363.46
Note: The disclosure on page 1 is an integral part of these consolidated financial statements and schedules. 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: APRIL 1, 2002 THROUGH APRIL 28, 2002 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 01MXI9761300 12/31/02 $453,750 06/30/02 Royal Indemnity Co. $5 Million RHD317182 12/31/02 $60,000 06/30/02 Westchester Fire $15 Million WXA663479-0 12/31/02 $51,500 06/30/02 Commonwealth Ins Co $25 Million CLP 10333 12/31/02 $79,459 06/30/02 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 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 06/30/02 $52,006 06/30/02 Excess Liability Great American Assurance $25 Million EXC5752226 06/30/02 $18,600 06/30/02 International Ace American Ins Co $1 Million PHF051491 12/31/02 $2,500 12/31/02 Directors & Officers Continental Insurance Co $10 Million 300714943 12/31/02 $514,286 12/31/02 Federal Insurance Co $10 Million 81278902-A 12/31/02 $470,250 12/31/02 Royal Insurance Co $10 Million PSF000009 12/31/02 $470,250 12/31/02 Fiduciary National Union Fire Ins Co $5 Million 8726812 12/31/02 $28,423 12/31/02
Note: The disclosure on page 1 is an integral part of these consolidated financial statements and schedules. 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: APRIL 1, 2002 THROUGH APRIL 28, 2002 3. BANK ACCOUNTS TOTAL CASH AND CASH EQUIVALENTS CASH IN STORES AND HOME OFFICE HOME OFFICE $ -- CORPORATE ACCOUNTS 9,643,205 CREDIT CARD CASH ACCOUNTS (SALES PROCESSED BY CREDIT CARD COMPANY) 48,499 OTHER DEPOSITORY ACCOUNTS OTHER CASH ACCOUNTS 72,897 INVESTMENTS SHORT TERM INVESTMENTS 121,502,117 ------------ TOTAL CASH PER GENERAL LEDGER $131,266,718 ============
Note: The disclosure on page 1 is an integral part of these consolidated financial statements and schedules. 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: APRIL 1, 2002 THROUGH APRIL 28, 2002 RECEIPTS AND DISBURSEMENTS (DOLLARS IN THOUSANDS)
ACTUAL ACTUAL ACTUAL ACTUAL TOTAL Monday 04/01/02 04/08/02 04/15/02 04/22/02 04/01/02 Sunday 04/07/02 04/14/02 04/21/02 04/28/02 04/28/02 -------- -------- -------- -------- -------- Receipts: Sales receipts/Profit Sharing $ 3,000 $ -- $ -- $ -- $ 3,000 Miscellaneous receipts 4,786 1,763 457 1,567 8,573 Real Estate Proceeds -- 69,425 500 -- 69,925 Expense reimbursements 8,169 9,642 5,794 -- 23,605 ------- ------- -------- ------- -------- Total available collections 15,955 80,830 6,751 1,567 105,103 Disbursements: Merchandise disbursements -- -- -- -- -- Non-merchandise disbursements 8,153 7,866 14,092 9,013 39,124 ------- ------- -------- ------- -------- Total disbursements 8,153 7,866 14,092 9,013 39,124 ------- ------- -------- ------- -------- Net receipts/(disbursements) $ 7,802 $72,964 $ (7,341) $(7,446) $ 65,979 ======= ======= ======== ======= ========
Note: The disclosure on page 1 is an integral part of these consolidated financial statements and schedules. 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: APRIL 1, 2002 THROUGH APRIL 28, 2002 ROLLING REVISED CASH FLOW FORECAST (DOLLARS IN THOUSANDS)
ACTUAL ACTUAL ACTUAL 02/24/02 03/31/02 04/28/02 -------- -------- -------- Ending total revolver balance $ -- $ -- $ -- Term loan -- -- -- Standby letters of credit 20,141 18,068 18,068 Trade letters of credit 9,610 -- -- -------- -------- ------- Total extensions of credit 29,751 18,068 18,068 Borrowing base 122,940 183,934 -- -------- -------- ------- Availability $ 93,189 $165,866 $ -- ======== ======== =======
(1) As of 4/16/02, The Standby Letters of Credit were fully cash collateralized Note: The disclosure on page 1 is an integral part of these consolidated financial statements and schedules. 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: April 1, 2002 THROUGH April 28, 2002 4. Payments to Professionals April 1, 2002 through April 28, 2002
VENDOR # VENDOR NAME CHECK AMT. CHECK DATE CHECK # - ------------------------------------------------------------------------------------------------------------------------------------ 2642 Waller, Lansden, Dortch and Davis $355.60 04/01/02 50067648 102914 Ernst and Young, LLP $781.00 04/01/02 50067688 99104 Jay Alix and Associates $313.96 04/01/02 B0027083 57117 Deloitte and Touche $20,000.00 04/03/02 50067826 103608 Abacus Advisory and Consulting $127,500.00 04/09/02 50068149 95912 Kightlinger and Gray $588.30 04/11/02 50068306 44013 McCarter and English $3,549.49 04/11/02 50068330 57117 Deloitte and Touche $47,490.00 04/11/02 50068346 67017 Barkley and Thompson $128.46 04/12/02 50068367 48779 Loss, Pavone and Orel $822.33 04/15/02 50068443 99444 Sitrick and Comp., Inc. $6,080.90 04/15/02 B0027146 71217 Bass, Berry and Sims $173,683.03 04/15/02 B0027148 48779 Loss, Pavone and Orel $767.25 04/16/02 50068505 101730 CBIZ Property Tax Solutions, Inc. $2,987.07 04/16/02 50068511 101730 CBIZ Property Tax Solutions, Inc. $6,563.06 04/16/02 50068512 101730 CBIZ Property Tax Solutions, Inc. $1,094.47 04/16/02 50068513 101730 CBIZ Property Tax Solutions, Inc. $264.75 04/16/02 50068514 101730 CBIZ Property Tax Solutions, Inc. $1,320.18 04/16/02 50068515 101730 CBIZ Property Tax Solutions, Inc. $2,942.55 04/16/02 50068516 99329 Aegis Property Tax Specialists $10,500.00 04/16/02 50068517 99329 Aegis Property Tax Specialists $2,137.50 04/16/02 50068518 99329 Aegis Property Tax Specialists $19,744.70 04/16/02 50068519 48779 Loss, Pavone and Orel $225.00 04/17/02 50068539 50995 Brann and Isaacson $781.00 04/19/02 50068608 99329 Aegis Property Tax Specialists $5,535.82 04/19/02 50068611 99459 Robert L. Berger and Associates $22,397.00 04/19/02 B0027192 103608 Abacus Advisory and Consulting $94,482.93 04/22/02 50068645 57117 Deloitte and Touche $20,000.00 04/22/02 50068656 98176 Price Waterhouse Coopers, LLP $256,898.00 04/22/02 50068667 86237 Brusniak, Clement, Harrison and McCool, PC $276.00 04/22/02 50068677 91420 Magenheim, Bateman, Robinson, Wrottenberry & Helfand, LLP $2,255.42 04/25/02 50068986 98378 Skadden, Arps, Slate, Meagher and Flom, LLP $474,360.00 04/25/02 B0027204 99391 Otterbourg, Steindler, Houston and Rosen, PC $67,442.92 04/25/02 B0027205 99454 Harwell, Howard, Hyne, Gabbert and Manner, PC $7,743.48 04/25/02 B0027206 91420 Magenheim, Bateman, Robinson, Wrottenberry & Helfand, LLP $5,919.75 04/26/02 50069037
Note: The disclosure on page 1 is an integral part of these consolidated financial statements and schedules. Page 7 FORM OPR- 1 AND 2 SERVICE MERCHANDISE COMPANY, INC. AND SUBSIDIARIES CONSOLIDATED BALANCE SHEETS (UNAUDITED) (DEBTOR-IN-POSSESSION) (IN THOUSANDS)
APRIL 28, 2002 --------- ASSETS Current Assets: Cash and cash equivalents $ 131,267 Accounts receivable 9,571 Inventories -- Prepaid Expenses 2,645 --------- TOTAL CURRENT ASSETS 143,483 --------- PROPERTY AND EQUIPMENT Owned assets, net of accumulated depreciation 39,969 Other assets and deferred charges 28,183 --------- TOTAL ASSETS $ 211,635 ========= LIABILITIES AND SHAREHOLDERS' (DEFICIT) EQUITY Liabilities Not Subject To Compromise Current Liabilities: Accounts payable $ 36,309 Accrued expenses 60,561 State & Local tax 606 --------- TOTAL CURRENT LIABILITIES 97,476 ---------
Note: The disclosure on page 1 is an integral part of these consolidated financial statements and schedules. Page 8 FORM OPR- 1 AND 2 SERVICE MERCHANDISE COMPANY, INC. AND SUBSIDIARIES CONSOLIDATED BALANCE SHEETS (UNAUDITED) (DEBTOR-IN-POSSESSION) (IN THOUSANDS) Liabilities Subject To Compromise: Accrued restructuring costs 42,067 Capitalized lease obligations -- Long-term debt 314,562 Accounts payable 217,752 Accrued expenses 83,985 --------- Total Liabilities Subject To Compromise 658,366 TOTAL LIABILITIES 755,842 --------- COMMITMENTS AND CONTINGENCIES SHAREHOLDERS' (DEFICIT) EQUITY Common stock 49,936 Additional paid-in-capital 5,881 Deferred compensation (53) Retained (deficit) earnings (599,971) --------- TOTAL SHAREHOLDERS' (DEFICIT) EQUITY (544,207) TOTAL LIABILITIES AND SHAREHOLDERS' (DEFICIT) EQUITY $ 211,635 =========
Note: The disclosure on page 1 is an integral part of these consolidated financial statements and schedules. Page 9 CHAPTER 11 MONTHLY OPERATING REPORT CASE NAME: SERVICE MERCHANDISE COMPANY, INC. et. al. CASE NUMBER: 399-02649 THROUGH 399-02680 PERIOD: APRIL 1, 2002 THROUGH APRIL 28, 2002 SUMMARY OF ACCOUNTS RECEIVABLE MONTH ENDED: APRIL 28, 2002 FORM OPR-3 NOT APPLICABLE Note: The disclosure on page 1 is an integral part of these consolidated financial statements and schedules. Page 10 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 1, 2002 THROUGH APRIL 28, 2002 SCHEDULE OF POST PETITION LIABILITIES-ACCOUNTS PAYABLE MONTH ENDED: 04/28/2002 FORM OPR-4
Total -------- Trade Accounts Payable (Merchandise) $ 36,309
Total -------- Expense & other payables * $ 60,561
Note: The disclosure on page 1 is an integral part of these consolidated financial statements and schedules. Page 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 1, 2002 THROUGH APRIL 28 2002 SCHEDULE OF POST PETITION LIABILITIES FORM OPR-4 (DOLLARS IN THOUSANDS)
DATE DATE TOTAL TAXES PAYABLE INCURRED DUE DUE Federal income tax ** Various Various $ 1,684 State income tax Various Various $ (120) ------- SUBTOTAL $ 1,564 ------- Sales/use tax SUBTOTAL * Various Various $ 725 ------- Personal property tax * Various Various $ 1,296 Real estate taxes * Various Various $ 8,681 Inventory taxes * Various Various $ -- Gross receipts/bus licenses * Various Various $ (78) Franchise taxes * Various Various $ 753 ------- SUBTOTAL $10,652 ------- ------- TOTAL TAXES PAYABLE $12,941 =======
* liability included in accrued expenses on OPR-2 ** tax reserve Note: The disclosure on page 1 is an integral part of these consolidated financial statements and schedules. Page 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 1, 2002 THROUGH APRIL 28, 2002 SCHEDULE OF POST PETITION LIABILITIES FORM OPR-4 (DOLLARS IN THOUSANDS)
DATE TOTAL DUE INCURRED DATE DUE (4/28/02 BALANCE) ----------------------------------------------------------- POST PETITION SECURED DEBT Revolver borrowings 04/14/00 04/14/04 $ -- Facility standby letters of credit 04/14/00 04/14/04 18,068 Facility trade letters of credit 04/14/00 04/14/04 -- Term loans 04/14/00 04/14/04 -- ------- TOTAL EXTENSIONS OF CREDIT $18,068 ======= ACCRUED INTEREST PAYABLE $ -- =======
As of 4/16/02, The Standby Letters of Credit were fully cash collateralized Note: The disclosure on page 1 is an integral part of these consolidated financial statements and schedules. Page 13 FORM OPR-5 SERVICE MERCHANDISE COMPANY, INC. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED) (DEBTOR-IN-POSSESSION) (IN THOUSANDS)
ACTIVITY APRIL 1, 2002 THROUGH APRIL 28, 2002 -------------- Net Sales $ -- Costs of merchandise sold and buying and occupancy expense 2,778 -------- Gross margin after cost of merchandise sold and buying and occupancy expenses (2,778) Selling, General and Administrative Expenses: Net Employment Expense 994 Net Advertising -- Banking and Other Fees (17) Real Estate and Other Taxes 522 Supplies 14 Communication and Equipment 127 Travel 5 UCC and Other Services 50 Legal and Professional 231 Sales and Shipping 16 Insurance -- Miscellaneous (1,125) Credit Card Services -- -------- Total Selling, General and Administrative Expenses 817 Other expense/(income), net (668)
Note: The disclosure on page 1 is an integral part of these consolidated financial statements and schedules. Page 14 FORM OPR-5 SERVICE MERCHANDISE COMPANY, INC. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED) (DEBTOR-IN-POSSESSION) (IN THOUSANDS)
ACTIVITY APRIL 1, 2002 THROUGH APRIL 28, 2002 -------------- Restructuring charge (credit) -- Earnings (loss) before interest, reorganization items, and income tax (2,927) Interest expense - debt 119 Earnings (loss) before reorganization items, and income tax (3,046) Reorganization Items: Legal and Professional 20 Miscellaneous 933 Loss (Gain) on Disposal of Assets (551) Close Store Charges 6,604 -------- Total Reorganization Items 7,006 Earnings (loss) before income tax (10,052) Cumulative Effect of Change in Accounting Principles -- -------- Net earnings (loss) $(10,052) ========
Note: The disclosure on page 1 is an integral part of these consolidated financial statements and schedules. Page 15 -----END PRIVACY-ENHANCED MESSAGE-----