-----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, SfA2b1/MEKlAiSaxuWawrzch9RdEDDxZAlaJhgoODAwcNhJKFb2eP/5M7zHlfRJn Z1QcbcAr6aNQM0V+9nG/9A== 0000950144-99-009187.txt : 19990728 0000950144-99-009187.hdr.sgml : 19990728 ACCESSION NUMBER: 0000950144-99-009187 CONFORMED SUBMISSION TYPE: 8-K PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 19990726 ITEM INFORMATION: FILED AS OF DATE: 19990727 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: 99671238 BUSINESS ADDRESS: STREET 1: 7100 SERVICE MERCHANDISE DR 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 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: July 26, 1999 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 (Commission File Number) (I.R.S. Employer of incorporation) 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 31, 1999 and ending July 4, 1999 (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 investors or potential investors 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, from the prospective of an investor or potential investor in the Company's securities, 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 investors and potential investors in the Company's securities 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 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 such 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. Investors and potential investors in the Company's securities 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. 2 3 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 the DIP Facility; the ability of the Company to operate successfully under a Chapter 11 proceeding; approval of plans and activities by the Bankruptcy Court; risks associated with operating a business in Chapter 11; the ability of the Company to create and have approved a reorganization plan in the Chapter 11 Cases; adverse developments with respect to the Company's liquidity or results of operations; the ability of the Company to obtain shipments and negotiate terms with vendors and service providers for current orders; the ability to conduct inventory liquidation sales to improve liquidity; the ability to develop, fund and execute an operating plan for the Company; the ability of the Company to attract and retain key executives and associates; competitive pressures from other retailers, including specialty retailers and discount stores, which may affect the nature and viability of the Company's business strategy; 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 to maintain gross profit margins; the seasonal nature of the Company's business (including risks related to seasonal inventory increases) and the ability of the Company to predict consumer demand as a whole, as well as demand for specific goods; the ability of the Company to attract and retain customers; costs associated with the shipping, handling and control of inventory and the Company's ability to optimize its supply chain; potential adverse publicity; availability and cost of management and labor employed; real estate occupancy and development costs, including the substantial fixed investment costs associated with opening, maintaining or closing a Company store; the potential delisting of the Company's securities and the absence of an active public trading market; the ability of the Company to provide a private label credit card; and the ability to effect conversions to new technological systems, including becoming Year 2000 compliant. 3 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 27, 1999 By: /s/ C. Steven Moore ------------------------------------ C. Steven Moore Vice President 4 5 EXHIBIT INDEX No. Exhibit - --------- --------------------------------------------------- 99 Operating Report for the period ending July 4, 1999 EX-99 2 OPERATING REPORT PERIOD ENDING JULY 4, 1999 1 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 July 4, 1999 ------------ COMES NOW, SERVICE MERCHANDISE COMPANY, INC. --------------------------------- Debtor-In-Possession, and hereby submits its Monthly Operating Report for the period commencing May 31, 1999 and ending July 4, 1999 as shown by the report ------------ ------------ and exhibits consisting of 16 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: 7-26-99 DEBTOR - IN - POSSESSION --------- By: /s/ Tom Garrett ----------------------------------------- Name and Title: TOM GARRETT, SENIOR VICE PRESIDENT & CFO ----------------------------------------- Address: 7100 SERVICE MERCHANDISE DRIVE ----------------------------------------- BRENTWOOD, TENNESSEE 37027 ----------------------------------------- Telephone No: 660-3477 ----------------------------------------- Note: Report subject to further verification and account reconciliation procedures 2 CHAPTER 11 Attachment 1 (Page 1) MONTHLY OPERATING REPORT MONTHLY REPORTING QUESTIONNAIRE CASE NAME: SERVICE MERCHANDISE COMPANY, INC. et. Al. CASE NUMBER: 399-02649 THROUGH 399-02680 PERIOD: MAY 31, 1999 THROUGH JULY 4, 1999 * 1. Payroll
WAGES TAXES OFFICERS TITLE GROSS NET DUE PAID -------- ----- --------- --------- -------- --------- SAM CUSANO CHIEF EXECUTIVE OFFICER 62,863.66 39,682.56 4,438.05 17,901.49 STEVE MOORE SENIOR VICE PRESIDENT, CHIEF ADMINISTRATIVE OFFICER,GENERAL COUNSEL & SECRETARY 34,496.73 23,205.25 2,401.49 8,678.68 TOM GARRETT SENIOR VICE PRESIDENT & CFO 31,830.16 22,970.43 1,843.13 6,755.05 STEVE MCCANN SENIOR VICE PRESIDENT, FINANCE & CHIEF ACCOUNTING OFFICER 22,596.20 13,919.80 1,368.81 5,667.28 GARY SEASE SENIOR VICE PRESIDENT, LOGISTICS 31,470.15 18,945.24 1,929.24 7,524.31 CHARLES SEPTER PRESIDENT & CHIEF OPERATING OFFICER 48,978.90 30,772.58 3,358.63 13,732.24 KENNETH BRAME SENIOR VICE PRESIDENT, INFORMATION SERVICES & CHIEF INFORMATION OFFICER 28,828.95 18,194.21 1,592.55 6,653.99 ROBERT J. PINDRED VICE PRESIDENT AND TREASURER 13,461.55 9,714.90 632.37 2,629.66 SANDRA CARY VICE PRESIDENT, ASST. TAX : FIN 9,615.40 6,906.29 518.60 2,080.51 J0E M. ELLIOTT AVP, PROPERTY ADMINISTRATION 10,205.55 6,339.83 475.11 1,928.66 ERIC KOVATS VICE PRESIDENT, REGIONAL: STORES 20,192.34 13,641.40 1,080.45 3,851.61
3 CHAPTER 11 Attachment 1 (Page 1) MONTHLY OPERATING REPORT MONTHLY REPORTING QUESTIONNAIRE CASE NAME: SERVICE MERCHANDISE COMPANY, INC. et. Al. CASE NUMBER: 399-02649 THROUGH 399-02680 PERIOD: MAY 31, 1999 THROUGH JULY 4, 1999 2. INSURANCE
DATE COVERAGE POLICY EXPIRATION PREMIUM COVERAGE TYPE NAME OF CARRIER AMOUNT NUMBER DATE AMOUNT PAID THRU - ----------------------------------------------------------------------------------------------------------------------------------- Property Security Ins Co of Hartford $5 Million CCIPW12011 5/1/00 $921,750 5/1/00 Commonwealth $5 Million US2387 5/1/00 $92,419 5/1/00 Westchester Fire $15 Million 1XA394310 5/1/00 $75,000 5/1/00 Allianz Insurance Co $12 Million CLP1034720 5/1/00 $30,000 5/1/00 TIG Insurance Co $13 Million XPT38797554 5/1/00 $32,500 5/1/00 Westchester Fire $30 Million 1XA394311 5/1/00 $15,000 5/1/00 Allianz Insurance Co $12 Million CLP1034720 5/1/00 $22,500 5/1/00 Allianz Insurance Co $25 Million CLP1034720 5/1/00 $10,000 5/1/00 Boiler & Machinery Hartford Steam Boiler $10 Million BMTBD 5/1/00 $11,900 5/1/00 Transit Security Ins Co of Hartford $1 Million CCIMG72820 5/1/00 $10,000 5/1/00 Ocean Cargo Phoenix Assurance Co of NY $10 Million CR37211 5/1/00 $40,000 5/1/00 Special Crime Reliance Insurance Co $25 Million NFK1951937 5/1/02 $13,458 5/1/02 Crime National Union Fire Ins Co $10 Million 858-0797 3/1/00 $56,505 3/1/00 Fiduciary National Union Fire Ins Co $10 Million 267-81-30 3/1/00 $19,462 3/1/00 Employment Practices Chubb Insurance Co $10 Million 81278901A 3/1/00 $221,575 3/1/00 Liability Royal Insurance Co $10 Million PSF000010 3/1/00 $88,200 3/1/00 Directors & Officers Continental Insurance Co $10 Million 300714943 3/1/01 $453,500 3/1/01 Chubb Insurance Co $10 Million 81278902-A 3/1/01 $266,666 3/1/01 Royal Insurance Co $10 Million PSF000009 3/1/01 $133,000 3/1/01 Umbrella Federal Insurance Co $50 Million 79763295 1/1/02 $79,196 1/1/02 Excess Liability American Guarantee & Liab $50 Million EUO2876107-01 1/1/02 $25,000 1/1/02 International Cigna Insurance Co $1 Million PHFTBD 1/1/00 $2,500 1/1/00 Punitive Damages Chubb Atlantic Indemnity $50 Million PUNTBD1 1/1/00 $17,160 1/1/00 Punitive Damages - Excess Zurich International Bermuda $50 Million PUNTBD2 1/1/00 $5,000 1/1/00 General Liability - Va. Beach Hartford Fire Insurance Co $2 Million 20UENTBD 1/1/00 $8,020 1/1/00 General Liability Cigna Insurance Co $5 Million XSLG19307931 1/1/00 $13,225 7/31/99 Workers' Compensation Pacific Employers Ins Co Statutory WLRC42316830 1/1/00 $17,797 7/31/99 WC Excess Cigna Insurance Co Statutory XWCO11865 1/1/00 $1,748 7/31/99 WC Contractual Indemnity Illinois Union Insurance Co Statutory CTPG19307992 1/1/00 $4,990 7/31/99 Auto Pacific Employers Ins Co $1 Million ISAHO7569488 1/1/00 $2,742 7/31/99
4 CHAPTER 11 MONTHLY OPERATING REPORT MONTHLY REPORTING QUESTIONNAIRE CASH NAME: SERVICE MERCHANDISE COMPANY, INC. et. A1. CASE NUMBER: 399-02649 THROUGH 399-02680 PERIOD: MAY 31, 1999 THROUGH JULY 4, 1999 3. BANK ACCOUNTS TOTAL CASH AND CASH EQUIVALENTS CASH IN STORES AND HOME OFFICE HOME OFFICE $ 14,615 RETAIL SAFE FUNDS $ 2,241,862 CORPORATE ACCOUNTS $ 1,101,606 STORE DEPOSITORY ACCOUNTS FIRST TENNESSEE $ 401,140 FIRSTAR $ 27,735 SOCIETY NATIONAL BANK $ 1,222,199 BANK OF BOSTON $ 482,129 BANK OF BOSTON CONNECTICUT $ 219,235 MERCANTILE BANK $ 127,593 FIRST UNION $ 3,343,499 HARRIS TRUST $ 980,716 BANK ONE LOUISIANA $ 1,711,929 ABN - AMRO BANK $ 954,654 COMERICA BANK $ 297,597 AM SOUTH $ 820,561 BANK OF AMERICA CALIFORNIA $ 165,231
5 NORWEST BANK $ 640,162 FIRST AMERICAN NATIONAL BANK $ 604,824 HERITAGE BANK OF NEVADA $ 2,077 BANK OF OKLAHOMA $ 192,873 CHASE BANK OF TEXAS $ 937,025 HIBERNIA $ 517,843 SINGLE STORE DEPOSITORY ACCOUNTS $ 4,237,370 FIRST NATIONAL BANK OF MARYLAND $ 114,854 FIFTH THIRD BANK $ 45,029 WELLS FARGO BANK $ 701,434 NATIONSBANK $ 1,313,625 NBD $ 894,346 PNC BANK $ 442,740 CREDIT CARD CASH ACCOUNTS (SALES PROCESSED BY CREDIT CARD COMPANY) $12,261,014 OTHER DEPOSITORY ACCOUNTS SERVICE MERCHANDISE - MUSCULAR DYSTROPHY ASSOC $ 648,713 OTHER CASH ACCOUNTS $ 192,047 TOTAL CASH & CASH EQUIVALENTS PER GENERAL LEDGER $37,858,274
6 CHAPTER 11 Attachment 1 (Page 2) MONTHLY OPERATING REPORT MONTHLY REPORTING QUESTIONNAIRE CASE NAME: SERVICE MERCHANDISE COMPANY, INC. et. Al. CASE NUMBER: 399-02649 THROUGH 399-02680 PERIOD: MAY 31, 1999 THROUGH JULY 4, 1999 4. Payments to Professionals May 31, 1999 through July 4, 1999
Vendor # Vendor Name Check Amt. Check Date Check # - --------------------------------------------------------------------------------------------------------- 79108 Ernst & Young LLP $ 3,595.00 6/2/99 30003892 71217 Bass, Berry & Sims, PLC $ 44,587.65 6/2/99 30003890 99459 Robert L. Berger & Associates $ 62,672.29 6/7/99 B0017712 99444 Sitrick and Company $ 151,821.08 6/8/99 30004894 99459 Robert L. Berger & Associates $ 58,917.06 6/17/99 B0017960 50995 Brann & Issacson, LLP $ 2,469.52 6/21/99 30006669 86237 Brusniak Clement Harrison & McCool, PC Inc. $ 694.52 6/22/99 30006839 98818 Resources Connection LLC Corp $ 13,050.00 6/24/99 30007184 94005 Donald A Blum $ 1,487.50 6/24/99 30007188 71217 Bass, Berry & Sims, PLC $ 133,837.40 7/1/99 B0018279 99444 Sitrick and Company $ 63,210.48 7/1/99 B0018276 99454 Harwell, Howard, Hyne, Gabbert & Manner, P.C. $ 28,609.91 7/1/99 B0018277 98378 Skadden, Arps, Slate, Meagher, & Flom $ 495,553.00 7/1/99 B0018278 79108 Ernst & Young LLP $ 121,246.00 7/1/99 B0018280 99391 Otterbourg, Steindler, Houston & Rosen, P.C. $ 262,827.86 7/1/99 B0018281 63078 Weil, Gotshal & Manges, LLP $ 223,293.53 7/1/99 B0018282 99104 Jay Alix & Associates $ 331,929.08 7/1/99 B0018285 99445 SGO Joint Venture $ 1,070,416.00 7/2/99 B0018300
7 CHAPTER 11 MONTHLY OPERATING REPORT MONTHLY REPORTING QUESTIONNAIRE CASH NAME: SERVICE MERCHANDISE COMPANY, INC. et. A1. CASE NUMBER: 399-02649 THROUGH 399-02680 PERIOD: MAY 31, 1999 THROUGH JULY 4, 1999 RECEIPTS AND DISBURSEMENTS May 31, 1999 - July 4, 1999 (Dollars in Thousands)
Actual Actual Actual Actual Actual Total Monday 5/31/99 6/7/99 6/14/99 6/21/99 6/28/99 5/31/99 Sunday 6/6/99 6/13/99 6/20/99 6/27/99 7/4/99 7/4/99 ------------------------------------------------------------------------- Receipts: Sales Receipts $32,373 $37,498 $42,200 $40,312 $ 37,434 $189,817 Miscellaneous Receipts 2,900 3 -- 2,500 8 5,411 ------------------------------------------------------------------------- Total Available collections 35,273 37,501 42,200 42,812 37,442 195,228 Disbursements: Merchandise disbursements 7,867 13,922 14,391 26,938 21,136 84,254 Non-merchandise disbursements 13,433 18,579 19,464 14,112 18,748 84,336 ------------------------------------------------------------------------- Total Disbursements: $21,300 $32,501 $33,855 $41,050 $ 39,884 $168,590 ------------------------------------------------------------------------- Change in cash $13,973 $ 5,000 $ 8,345 $ 1,762 $ (2,442) $ 26,638 -------------------------------------------------------------------------
8 CHAPTER 11 MONTHLY OPERATING REPORT MONTHLY REPORTING QUESTIONNAIRE CASE NAME: SERVICE MERCHANDISE COMPANY, INC. et. Al. CASE NUMBER: 399-02649 THROUGH 399-02680 MONTH OF: MAY 31, 1999 THROUGH JULY 4, 1999 SERVICE MERCHANDISE COMPANY INC. Rolling Revised Cash Flow Forecast (Dollars in Thousands)
Actual Forecast Forecast Forecast Forecast Monday 7/12/99 7/19/99 8/16/99 9/13/99 10/11/99 Sunday 7/18/99 7/25/99 8/22/99 9/19/99 10/17/99 ---------------------------------------------------------------- Ending Total Revolver Balance $ 28,815 $ 47,663 $116,316 $170,349 $259,412 ---------------------------------------------------------------- Term Loan 99,750 99,750 99,750 99,750 99,500 Standby Letters of Credit 43,039 30,167 30,167 29,800 29,800 Trade Letters of Credit 64,410 65,000 55,000 53,000 40,000 ---------------------------------------------------------------- Total Extensions of Credit $236,014 $242,580 $301,233 $352,899 $428,712 ---------------------------------------------------------------- ---------------------------------------------------------------- Borrowing Base (Before Interim Reserve) $479,613 $497,532 $517,634 $538,686 $595,073 ---------------------------------------------------------------- Availability (Before Interim Reserve) $243,599 $254,952 $216,401 $185,787 $166,361
Note: The anticipated increase in revolver borrowings and decrease in availability in August and September reflects, among other things, seasonal inventory increases relating to the Fall Selling Season 9 FORM OPR-1 AND 2 SERVICE MERCHANDISE COMPANY, INC. AND SUBSIDIARIES CONSOLIDATED BALANCE SHEETS (UNAUDITED) (DEBTOR-IN-POSSESSION) (IN THOUSANDS)
July 4, May 30, 1999 1999 ---------- ---------- ASSETS Current Assets: Cash and cash equivalents $ 37,858 $ 43,513 Accounts receivable {a} 16,565 32,813 Inventories 553,711 598,834 Prepaid expenses and other assets {b} 86,974 39,972 ---------- ---------- TOTAL CURRENT ASSETS 695,108 715,132 Net property and equipment - owned {b} 364,581 401,987 Net property and equipment - leased 17,588 19,230 Other assets and deferred charges 49,844 49,660 ---------- ---------- TOTAL ASSETS $1,127,121 $1,186,009 ========== ========== LIABILITIES AND SHAREHOLDER'S EQUITY Liabilities Not Subject To Compromise Current Liabilities: Notes payable $ 33,624 $ 65,303 Accounts payable 26,435 12,925 Accrued expenses {a} 125,962 135,010 Sales & Local Sales Tax 15,233 13,410 Income taxes 8,237 7,625 Current maturities long-term debt 1,000 1,000 ---------- ---------- TOTAL CURRENT LIABILITIES 210,491 235,273
10 FORM OPR-1 AND 2 SERVICE MERCHANDISE COMPANY, INC. AND SUBSIDIARIES CONSOLIDATED BALANCE SHEETS (UNAUDITED) (DEBTOR-IN-POSSESSION) (IN THOUSANDS) Long Term Liabilities: Long-term debt 98,750 99,000 Liabilities Subject To Compromise: Restructure {c} 73,096 89,559 Capital Lease Obligations 43,752 46,924 Long Term Debt 465,317 465,317 Accounts Payable 191,406 195,125 Accrued Expense {c} 87,502 70,896 ---------- ---------- Liabilities Subject To Compromise 861,073 867,821 TOTAL LIABILITIES 1,170,314 1,202,095 ---------- ---------- COMMITMENTS AND CONTINGENCIES SHAREHOLDER'S EQUITY Common Stock 50,049 50,084 Additional paid-in-capital 6,756 7,027 Deferred Compensation (1,086) (1,322) Accumulated other comprehensive income (869) (869) Retained Earnings (98,043) (71,006) ---------- ---------- Shareholders' equity (43,193) (16,086) TOTAL LIABILITIES AND SHAREHOLDER'S EQUITY $1,127,121 $1,186,009 ========== ==========
{a} A credit card receivable allowance of $14,400 was reclassed between Accrued expense and Accounts Receivable {b} Property of $31,000 was reclassed to Prepaid and other as assets available for sale {c} Store closing costs of $13,859 was reclassed between Restructure and Accrued expense 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 31, 1999 THROUGH JULY 4, 1999 SUMMARY OF ACCOUNTS RECEIVABLE Month Ended: 07/04/99 FORM OPR-3 NOT APPLICABLE 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 31, 1999 THROUGH JULY 4, 1999 SCHEDULE OF POST PETITION LIABILITIES-ACCOUNTS PAYABLE Month Ended: 07/04/99 FORM OPR-4
Total current ----------- ----------- Trade Accounts Payable (Merchandise) $26,435,000 $26,435,000 Total current ----------- ----------- Expense & other payables $125,962,000 $125,962,000
13 CHAPTER 11 MONTHLY OPERATING REPORT MONTHLY REPORTING QUESTIONNAIRE CASE NAME: SERVICE MERCHANDISE COMPANY, INC. et. Al. CASE NUMBER: 399-02649 THROUGH 399-02680 PERIOD: MAY 31, 1999 THROUGH JULY 4, 1999 SCHEDULE OF POST PETITION LIABILITIES FORM OPR-4
Date Date Total 0-30 TAXES PAYABLE Incurred Due Due Days ------------------------------------------------------------- Federal Income Tax ** Various Various 8,365,307 8,365,307 State Income Tax Various Various (128,293) (128,293) ------------------------------- SUBTOTAL 8,237,014 8,237,014 ------------------------------- Sales/Use Tax Various Various 15,233,066 15,233,066 ------------------------------- Personal Property Tax * Various Various 531,913 531,913 Real Estate Taxes * Various Various 5,461,255 5,461,255 Inventory Taxes * Various Various 927,098 927,098 Gross Receipts/Bus Licenses * Various Various 103,062 103,062 Franchise Taxes * Various Various 87,443 87,443 ------------------------------- SUBTOTAL 7,110,771 7,110,771 ------------------------------- TOTAL TAXES PAYABLE 30,580,851 30,580,851 ===============================
* liability included in accrued expenses on OPR-2 ** tax reserve 14 CHAPTER 11 MONTHLY OPERATING REPORT MONTHLY REPORTING QUESTIONNAIRE CASH NAME: SERVICE MERCHANDISE COMPANY, INC. et. A1. CASE NUMBER: 399-02649 THROUGH 399-02680 PERIOD: MAY 31, 1999 THROUGH JULY 4, 1999 SCHEDULE OF POST PETITION LIABILITIES Month Ended: 7/04/99 FORM OPR-4 ($ IN THOUSANDS)
TOTAL DUE DATE (7/04/99 INCURRED DATE DUE Balance) 0 - 30 DAYS POST PETITION SECURED DEBT Revolver Borrowings 3/27/99 6/30/01 33,624 33,624 Facility Standby Letters of Credit 3/27/99 6/30/01 28,950 -- Facility Trade Letters of Credit 3/27/99 6/30/01 61,438 -- Term Loans 3/27/99 6/30/01 99,750 99,750 ------- TOTAL EXTENSIONS OF CREDIT 223,762 POST PETITION UNSECURED DEBT -- ACCRUED INTEREST PAYABLE 592
15 FORM OPR-5 SERVICE MERCHANDISE COMPANY, INC. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED) (DEBTOR-IN-POSSESSION) (IN THOUSANDS)
Activity May 31, 1999 through July 4, 1999 ------------ Net Sales $ 172,082 Costs of merchandise sold and buying and occupancy expense 133,547 --------- Gross margin after cost of merchandise sold and buying and occupancy expenses 38,535 Selling, General and Administrative Expenses: Net Employment Expense 29,264 Net Advertising 9,215 Banking and Other Fees 2,542 Real Estate and Other Taxes 2,177 Supplies 1,245 Communication and Equipment 617 Travel 509 Security and Other Services 315 Legal and Professional 844 Insurance 1,459 Credit Card Services 1,010 Miscellaneous (243) --------- Total Selling, General and Administrative Expenses 48,954 Other income, net (236) Restructuring charge (19,378){a}
16 FORM OPR-5 SERVICE MERCHANDISE COMPANY, INC. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED) (DEBTOR-IN-POSSESSION) (IN THOUSANDS) Depreciation and amortization 4,145 --------- Earnings (loss) before interest, reorganization items, and income tax 5,050 Interest expense - debt 3,640 Interest expense - capitalized leases 782 --------- Earnings (loss) before reorganization items, and income tax 628 Reorganization Items: Legal and professional 3,366 Loss/(gain) on sale of assets 10,290 Close store charges 14,009 {a} --------- Reorganization items 27,665 Earnings (loss) before income tax (27,037) Income tax benefit -- --------- Net earnings (loss) $ (27,037) =========
{a} Store closing costs of $13,859 was reclassed between Restructure and Close store charges -----END PRIVACY-ENHANCED MESSAGE-----