EX-99 3 ex99.txt EXHIBIT 99.1 Exhibit 99.1 United States Bankruptcy Court Eastern District of Kentucky Ashland Division IN RE: CASE NO. 03-10078 DEBTOR(S) CHAPTER 11 Monthly Operating Report For Month Ending May 31, 2003 Comes now Kentucky Electric Steel, Inc., debtor in possession and herby submits its Monthly Operating Report for the Periods commencing May 4, 2003 and ending May 31, 2003 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) ___X____ Summary of Accounts Receivable (Form OPR - 3) ___X____ Schedule of Post - Petition Liabilities (Form OPR - 4) ___X____ Statement of Income (Loss) Form OPR - 5) ___X____ Statement of Sources and Uses of Cash (Form OPR - 6) I declare under penalty of perjury that this report and all 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 was delivered to the U.S. Trustee. Date: June 20, 2003 DEBTOR ------------- By: /s/ William J. Jessie --------------------------------------- (Signature) Name & Title: William J. Jessie, President ---------------------------- (Print or Type) Address: US Route 60 --------------------------------- Ashland, KY 41101 --------------------------------- Telephone Number: (606) 929 - 1200 ------------------------- Attachment 1 (Page 1) Chapter 11 Monthly Operating Report Monthly Reporting Questionnaire CASE NAME: Kentucky Electric Steel, Inc. CASE NUMBER: 03-10078 MONTH OF: MAY 1. Payroll - State the amount of all executive wages paid and taxes withheld and paid (1) Wages Paid Taxes (2) Name and Title of ------------------ ---------------- Executive Gross Net Due Paid --------- ----- ----- ----- ----- William J. Jessie - $ 16,220 $10,843 $ 5,612 $ 4,672 (President and CFO) ------------------------------------------------------------------------------- William H. Gerak - - - - - (Vice President of Administration) ------------------------------------------------------------------------------- Joseph E. Harrison - - - - - (Vice President of Sales and Marketing) ------------------------------------------------------------------------------- Jack W. Mehalko - - - - - (Interim President) ------------------------------------------------------------------------------- Total Executive Payroll: $ 16,220 $10,843 $ 5,612 $ 4,672 ------------------------------------- 2. Insurance - Is workers' compensation and other insurance in effect? __Yes__ Are Payments Current? __YES__ If any policy has lapsed, been replaced or renewed, state so in the schedule below. Attach a copy of the new policy's binder pr cover page.
Name of Coverage Expiration Premium Date of Coverage Pd. Type Carrier Amount Policy # Date Amount Through ---- ------- -------- -------- ---------- ------- ------------------- Casualty: _______________________________________________________________________ Workers Comp. _______________________________________________________________________ General Liability: _______________________________________________________________________ Vehicle: _______________________________________________________________________ Other (Specify) _______________________________________________________________________ _______________________________________________________________________
(1) Payroll for executives included salary and retention bonus during the fiscal month of May. (2) Taxes include payments made by the employer. Attachment 1 (Page 2) Chapter 11 Monthly Operating Report Monthly reporting Questionnaire CASE NAME: Kentucky Electric Steel, Inc. CASE NUMBER: 03-10078 MONTH OF: MAY 3. Bank Accounts Account Type --------------------------------------------------------- Operating Tax Payroll Other Total ------------- --------- -------------- ---------- ------- Bank Name See attached Exhibit A ------------- --------- -------------- ---------- Account # ------------- --------- -------------- ---------- Beginning Book Balance ------------- --------- -------------- ---------- ------- Plus: Deposits ------------- --------- -------------- ---------- ------- Less: Disbursements ------------- --------- -------------- ---------- ------- Other: Transfers -------------------- ------------- --------- -------------- ---------- ------- Ending Book Balance ------------- --------- -------------- ---------- ------- 4. Postpetition Payments - List any postpetition payments to professionals and payments on prepetition debts in the schedule below (attach separate sheet if necessary) Payments To ------------ Professionals (attorneys, accountants, etc.):
Amount Date Check # ------------ ------- --------------------- ------------------------------------- ------------ ------- --------------------- ------------------------------------- ------------ ------- --------------------- Total $ - Prepetition Creditors: Senior Note (Cigna & Modern Woodmen of America) $ 800,000 Daily Swept out of Lockbox ------------------------------------- ------------ ------- --------------------- Revolving line of Credit (National City & SunTrust) (1) $(207,624) Daily Swept out of Lockbox ------------------------------------- ------------ ------- --------------------- ------------------------------------- ------------ ------- --------------------- ------------------------------------- ------------ ------- --------------------- ------------------------------------- ------------ ------- --------------------- Total $ 592,376
(1) Represents amount escrowed in previous month that was reflected as a paydown on the revolving line of credit in the April 2003 Monthly Operating Report. In May, this amount was used to pay down the senior notes. Kentucky Electric Steel, Inc. Cash Summary for the Month Ending May 31, 2003 EXHIBIT A
Workers Health Cash Collateral Petty Compensation Benefits Lockbox General Cash ---------------- -------------- --------------- ---------------- ------------ Bank Name National City National City National City National City KESI Account # 754202055 754202063 754119200 70936836 98239 Beginning Book Balance $ 100,000 $ 455,000 $ 300,000 $(7,354,192) $ 400 Plus: Deposits - - 790,662 - - Less: Disbursements - - - 76,017 - Transfers/Other: Transfers Transfer to Professional Fees Account ( 9,984) Transfer to Professional Fees Account (52,530) Transfer to Bank One Tax Account (10,000) Transfer to Bank One Tax Account (20,000) Transfer to Bank One Tax Account ( 5,000) Transfer to NCB Office Account (20,000) Transfer to NCB Office Account (13,334) Other Paydown on line/fund general account (799,242) 799,242 Paydown on senior notes ( 800,000) --------- --------- --------- ------------ ----- Ending Book Balance $ 100,000 $ 455,000 $ 291,420 $ (7,561,816) $ 400 ========= ========= ========= ============ =====
Triton/ Office Salary Hourly Republic Note Tax/Other Account Payroll Payroll ----------------- --------------- --------------- ------------- -------------- Bank Name National City Bank One Bank One Fifth Third Fifth Third Private Client Group Account # 4090-K001-00-7 626225676 626225320 73404006 73404022 626225668 Beginning Book Balance $ 137,671 $ 292 $ - $ - $ - Plus: Deposits - - - - - Less: Disbursements - 18,313 - - - Transfers/Other: Transfers Transfer to Professional Fees Account Transfer to Professional Fees Account Transfer to Bank One Tax Account 10,000 Transfer to Bank One Tax Account 20,000 Transfer to Bank One Tax Account 5,000 Transfer to NCB Office Account Transfer to NCB Office Account Other Paydown on line/fund general account Paydown on senior notes --------- --------- --------- --------- --------- Ending Book Balance $ 137,671 $ 16,979 $ - $ - $ - ========= ========= ========= ========= =========
Office Zero Balance Zero Balance Lease Payment Account Health Benefit Workers Comp. Account ---------------- ------------------ ------------------- ---------------- Bank Name National City National City National City Fifth Third Account # 39353008 70937158 70999943 73419056 Beginning Book Balance $ 33,519 $ - $ - $ - Plus: Deposits - - - - Less: Disbursements 62,485 - - - Transfers/Other: Transfers Transfer to Professional Fees Account Transfer to Professional Fees Account Transfer to Bank One Tax Account Transfer to Bank One Tax Account Transfer to Bank One Tax Account Transfer to NCB Office Account 20,000 Transfer to NCB Office Account 13,334 Other Paydown on line/fund general account Paydown on senior notes --------- --------- --------- -------- Ending Book Balance $ 4,368 $ - $ - $ - ========= ========= ========= ========
Health Benefit Professional Total Disbursement Fees Account All Accounts ------------------ ---------------- -------------- Bank Name National City National City Account # 754201570 754201618 Beginning Book Balance $ - $ 407,097 $(5,920,213)(1) Plus: Deposits - - 790,662 Less: Disbursements - - 156,815 Transfers/Other: Transfers Transfer to Professional Fees Account 9,984 Transfer to Professional Fees Account 52,530 Transfer to Bank One Tax Account Transfer to Bank One Tax Account Transfer to Bank One Tax Account Transfer to NCB Office Account Transfer to NCB Office Account Other Paydown on line/fund general account (800,000) Paydown on senior notes --------- --------- ------------- Ending Book Balance $ - $ 496,611 $ (6,086,367) ========= ========= =============
(1) The cash summary reconciles to the Monthly Operating Report as follows: May 3, 2003 May 31, 2003 ------------- -------------- Cash $ 578,979 $ 629,029 Restricted Cash 855,000 846,420 ------------- -------------- Total Cash $ 1,433,979 $ 1,475,449 ============= ============== The cash balance per this schedule is as follows: Total Cash per Above $ (5,920,213) $ (6,086,367) Less: Amount Reported as Line of Credit (7,354,192) (7,561,816) ------------- -------------- Cash Balance $ 1,433,979 $ 1,475,449 ============= ============== CASE NAME: Kentucky Electric Steel, Inc. COMPARATIVE BALANCE SHEET FORM OPR - 1 REV 2/90 CASE NUMBER: 03-10078 MONTH ENDED: MAY
February 5, March 1, March 29, May 3, May 31, 2003 2003 2003 2003 2003 ASSETS CURRENT ASSETS Other Negotiable instruments (i.e.. CD's T-Bills) $ - $ - $ - $ - $ - --------------- --------------- -------------- -------------- -------------- Accounts receivable (See OPR - 3) 9,734,029 8,478,039 5,972,687 2,842,297 2,149,555 --------------- --------------- -------------- -------------- -------------- Less allowance for doubtful accounts - - - - - --------------- --------------- -------------- -------------- -------------- Inventory, at lower of cost or market 10,346,543 7,815,001 2,462,067 - - --------------- --------------- -------------- -------------- -------------- Prepaid expenses and deposits 2,813,034 2,462,924 1,881,542 1,811,666 1,592,967 --------------- --------------- -------------- -------------- -------------- Investments - - - - - --------------- --------------- -------------- -------------- -------------- Other: Operating Supplies, rolls, molds, etc. 4,203,699 4,203,699 4,203,699 4,203,699 4,203,699 --------------- --------------- -------------- -------------- -------------- Cash and Restricted cash 1,092,575 1,931,782 1,291,023 1,433,979 1,475,449 --------------- --------------- -------------- -------------- -------------- Other Assets 64,794 61,294 60,935 50,953 49,510 --------------- --------------- -------------- -------------- -------------- TOTAL CURRENT ASSETS $ 28,254,674 $ 24,952,739 $ 15,871,953 $ 10,342,594 $ 9,471,180 --------------- --------------- -------------- -------------- -------------- PROPERTY PLANT AND EQUIPMENT, $ - $ - $ - $ - $ - AT COST --------------- --------------- -------------- -------------- -------------- Less accumulated depreciation - - - - - --------------- --------------- -------------- -------------- -------------- NET PROPERTY PLANT AND EQUIPMENT 19,452,338 19,452,338 19,452,338 19,452,338 19,452,338 --------------- --------------- -------------- -------------- -------------- Other non current assets 307,958 304,232 260,771 260,771 260,771 --------------- --------------- -------------- -------------- -------------- Deferred finance charges 558,815 - - - - --------------- --------------- -------------- -------------- -------------- TOTAL ASSETS $ 48,573,785 $ 44,709,309 $ 35,585,062 $ 30,055,703 $ 29,184,289 --------------- --------------- -------------- -------------- --------------
* Itemize if value of "Other Assets" exceed 10% of "Total Assets." CASE NAME: Kentucky Electric Steel, Inc. COMPARATIVE BALANCE SHEET FORM OPR - 2 REV 2/90 CASE NUMBER: 03-10078 MONTH ENDED: MAY
February 5, March 1, March 29, May 3, May 31, 2003 2003 2003 2003 2003 LIABILITIES POST PETITION LIABILITIES $ 204,746 $ 702,564 $ 947,405 $ 1,111,679 $ 1,303,592 ------------ ------------ ------------ ------------ ------------ PRE PETITION LIABILITIES ------------ ------------ ------------ ------------ ------------ Priority Debt 2,629,975 2,592,107 2,098,489 2,068,489 2,068,489 ------------ ------------ ------------ ------------ ------------ Secured Debt 30,530,705 27,658,910 23,544,655 19,613,859 19,021,483 ------------ ------------ ------------ ------------ ------------ Unsecured Debt 9,426,688 9,433,310 8,691,905 8,301,017 8,301,017 ------------ ------------ ------------ ------------ ------------ TOTAL PRE PETITION LIABILITIES $ 42,587,368 $ 39,684,328 $ 34,335,049 $ 29,983,364 $ 29,390,988 ------------ ------------ ------------ ------------ ------------ TOTAL LIABILITIES $ 42,792,114 $ 40,386,892 $ 35,282,454 $ 31,095,043 $ 30,694,580 ------------ ------------ ------------ ------------ ------------ SHAREHOLDERS' EQUITY (DEFICIT) PREFERRED STOCK $ - $ - $ - ------------ ------------ ------------ ------------ ------------ COMMON STOCK 50,516 50,516 50,516 50,516 50,516 ------------ ------------ ------------ ------------ ------------ PAID-IN CAPITAL 15,817,342 15,817,342 15,817,342 15,817,342 15,817,342 ------------ ------------ ------------ ------------ ------------ TREASURY STOCK (4,309,397) (4,309,397) (4,309,397) (4,309,397) (4,309,397) ------------ ------------ ------------ ------------ ------------ RETAINED EARNINGS ------------ ------------ ------------ ------------ ------------ Through filing date (5,776,790) (5,776,790) (5,776,790) (5,776,790) (5,776,790) ------------ ------------ ------------ ------------ ------------ Post filing date - (1,459,254) (5,479,063) (6,821,011) (7,291,962) ------------ ------------ ------------ ------------ ------------ TOTAL SHAREHOLDERS' EQUITY $ 5,781,671 $ 4,322,417 $ 302,608 $( 1,039,340) $ (1,510,291) ------------ ------------ ------------ ------------ ------------ TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY $ 48,573,785 $ 44,709,309 $ 35,585,062 $ 30,055,703 $ 29,184,289 ------------ ------------ ------------ ------------ ------------
CASE NAME: Kentucky Electric Steel, Inc. SUMMARY OF ACCOUNTS RECEIVABLE FORM OPR - 3 REV 2/90 CASE NUMBER: 03-10078 MONTH ENDED: MAY
(1) (1) (1) (1) TOTAL CURRENT 1 - 30 DAYS 31 - 60 DAYS OVER 60 DAYS PAST DUE PAST DUE PAST DUE DATE OF FILING: FEBRUARY 5, 2003 $ 10,089,029 $ 7,974,031 $ 1,611,266 $ 479,232 $ 24,500 ------------------ --------------- ------------ ------------- ------------- ------------- Allowance for doubtful accounts $ (355,000) --------------- ------------ ------------- ------------- ------------- Net accounts receivable $ 9,734,029 =============== MONTH: FEBRUARY - (March 1) $ 8,848,039 $ 6,254,947 $ 2,046,099 $ 435,313 $ 111,680 ---------------------- --------------- ------------ ------------- ------------- ------------- Allowance for doubtful accounts $ (370,000) --------------- ------------ ------------- ------------- ------------- Net accounts receivable $ 8,478,039 =============== MONTH: MARCH - (March 29) $ 6,357,687 $ 2,637,537 $ 2,788,675 $ 684,222 $ 247,253 ------------------------- --------------- ------------ ------------- ------------- ------------- Allowance for doubtful accounts $ (385,000) --------------- ------------ ------------- ------------- ------------- Net accounts receivable $ 5,972,687 =============== MONTH: APRIL - (May 3) $ 3,227,297 $ 758,907 $ 1,156,614 $ 637,812 $ 673,964 ------------------------- --------------- ------------ ------------- ------------- ------------- Allowance for doubtful accounts $ (385,000) --------------- ------------ ------------- ------------- ------------- Net accounts receivable $ 2,842,297 =============== MONTH: APRIL - (May 31) $ 2,464,555 $ 215,802 $ 98,441 $1,176,763 $ 973,560 ------------------------- --------------- ------------ ------------- ------------- ------------- Allowance for doubtful accounts $ (315,000) --------------- ------------ ------------- ------------- ------------- Net accounts receivable $ 2,149,555 ===============
NOTE: Total accounts receivable net of allowance for doubtful accounts shown here must agree to Form OPR - 1. (1) The Company sells to customers on various terms including 30 days, 45 days and 60 days. The aging reports are prepared showing current, 1 - 30 days past due, 31 - 60 days past due and over 60 days past due. CASE NAME: Kentucky Electric Steel, Inc. SUMMARY OF POST PETITION LIABILITIES FORM OPR - 4 REV 2/90 CASE NUMBER: 03-10078 MONTH ENDED: MAY
DATE DATE TOTAL AMOUNT 0 - 30 31 - 60 61 - 90 OVER INCURRED DUE DUE DAYS DAYS DAYS 90 DAYS TAXES PAYABLE Federal Income Tax -------- ------ ------------- ----------- --------- --------- ---------- FICA - Employer's Share -------- ------ ------------- ----------- --------- --------- ---------- FICA - Employee's Share -------- ------ ------------- ----------- --------- --------- ---------- Unemployment Tax -------- ------ ------------- ----------- --------- --------- ---------- Sales Tax -------- ------ ------------- ----------- --------- --------- ---------- Property Tax -------- ------ ------------- ----------- --------- --------- ---------- TOTAL TAXES PAYABLE $ 103,476 $ 103,476 $ - $ - $ - -------- ------ ------------- ----------- --------- --------- ---------- POSTPETITION SECURED DEBT See attached Exhibit B -------- ------ ------------- ----------- --------- --------- ---------- POSTPETITION UNSECURED DEBT -------- ------ ------------- ----------- --------- --------- ---------- ACCRUED INTEREST PAYABLE -------- ------ ------------- ----------- --------- --------- ---------- TRADE ACCOUNTS PAYABLE & OTHER: (list separately) Total Trade & Other Accounts Payable $1,200,116 $ 855,294 $134,466 $ 109,466 $100,890 ------------------------------------ -------- ------ ------------- ----------- --------- --------- ---------- See attached Exhibit C ------------------------------------ -------- ------ ------------- ----------- --------- --------- ---------- ------------------------------------ -------- ------ ------------- ----------- --------- --------- ---------- ------------------------------------ -------- ------ ------------- ----------- --------- --------- ---------- ------------------------------------ -------- ------ ------------- ----------- --------- --------- ---------- ------------------------------------ -------- ------ ------------- ----------- --------- --------- ---------- TOTALS $1,303,592 $ 958,771 $134,466 $ 109,466 $100,890 -------- ------ ------------- ----------- --------- --------- ----------
Attach separate page if necessary. Note: Total postpetition liabilities shown here must agree with the same item as shown on Form OPR-2. Exhibit B Kentucky Electric Steel, Inc. Summary of Post Petition Liabilities - Taxes Payable May 31, 2003
DATE DATE TOTAL 0-30 31-60 61-90 OVER INCURRED DUE DUE DAYS DAYS DAYS 90 DAYS TAXES PAYABLE Federal Income Tax Salary Payroll 05/30/03 06/04/03 $ 2,960 $ 2,960 $ - $ - $ - FICA - Employer's Share Salary Payroll 05/30/03 06/04/03 794 794 $ - $ - $ - FICA - Employee's Share Salary Payroll 05/30/03 06/04/03 794 794 $ - $ - $ - Sales Tax May 05/31/03 06/25/03 7,952 7,952 $ - $ - $ - Property Tax 2003 Prop. Tax Accrual (4 months) 02/05/03 12/31/03 75,000 75,000 $ - $ - $ - Kentucky Income Tax Salary Payroll 05/30/03 06/10/03 652 652 $ - $ - $ - W.Va. Income Tax Salary Payroll 05/30/03 06/20/03 324 324 $ - $ - $ - Kentucky license Tax (4 months) 02/05/03 Various 7,500 7,500 $ - $ - $ - Deleware Franchise Tax (4 months) 02/05/03 Various 7,500 7,500 $ - $ - $ - --------- --------- --- --- --- TOTAL TAXES PAYABLE $ 103,476 $ 103,476 $ - $ - $ - ========= ========= === === === POSTPETITION SECURED DEBT - - - - - POSTPETITION UNSECURED DEBT - - - - - ACCRUED INTEREST PAYABLE - - - - -
Exhibit C Kentucky Electric Steel, Inc. Summary of Post Petition Liabilities - Trade Accounts Payables and Others May 31, 2003
DATE DATE TOTAL 0-30 31-60 61-90 OVER Accounts Payable INCURRED DUE DUE DAYS DAYS DAYS 90 DAYS ---------------- -------- --- --- ---- ---- ---- ------- Trade Accounts Payable ---------------------- The Reserves Network 05/28/03 06/27/03 $ 798 $ 798 $ - $ - $ - The Wackenhut Corporation 05/25/03 06/24/03 1,062 1,062 - - - IKON Office Solutions 05/30/03 06/09/03 637 637 - - - IKON Office Solutions 05/31/03 06/10/03 19 19 - - - IKON Office Solutions 02/17/03 02/27/03 532 - - - 532 Ceridian Employer Services 05/12/03 05/22/03 92 92 - - - Ceridian Employer Services 05/22/03 06/01/03 91 91 - - - Ceridian Employer Services 05/23/03 06/02/03 92 92 - - - Alltel 05/29/03 06/13/03 101 101 - - - A T & T 05/31/03 05/31/03 2,763 2,763 - - - NationsRent 05/28/03 06/15/03 842 842 - - - Cannonsburg Water District 05/30/03 06/25/03 4,890 4,890 - - - The Reserves Network 05/31/03 06/30/03 813 813 - - - The Wackenhut Corporation 05/31/03 06/30/03 1,238 1,238 - - - Core Risk Services 05/31/03 06/30/03 1,737 1,737 - - - CSX 04/04/03 04/19/03 25,000 - 25,000 - - American Electric Power 05/31/03 06/16/03 16,000 16,000 ------- ------- ------- ------- ------- Trade Accounts Payable $ 56,706 $ 31,174 $ 25,000 $ - $ 532 ------- ------- ------- ------- ------- Other ----- Accrued Health Benefits 03/28/03 TBD 70,000 70,000 - - - Accrued Professional Fees 02/05/03 TBD 644,654 644,654 - - - Accrued sales leaseback transaction 03/28/03 TBD 428,756 109,466 109,466 109,466 100,358 ------- ------- ------- ------- ------- Other Accounts Payable $1,143,410 $824,120 $109,466 $109,466 $100,358 ------- ------- ------- ------- ------- ------- ------- ------- ------- ------- Total Accounts Payable $1,200,116 $855,294 $134,466 $109,466 $100,890 ------- ------- ------- ------- -------
CASE NAME: Kentucky Electric Steel, Inc. STATEMENT OF INCOME (LOSS) FORM OPR - 5 REV 2/90 CASE NUMBER: 03-10078 MONTH ENDED: MAY
FILING FEBRUARY MARCH APRIL MAY TO DATE NET REVENUE (INCOME) $ 2,600,739 $ 2,370,145 $ 1,782,455 $ 65,869 $ 6,819,208 ------------ ------------ ------------ ------------ ------------- COST OF GOODS SOLD Materials - - - - - ------------ ------------ ------------ ------------ ------------- Labor - Direct - - - - - ------------ ------------ ------------ ------------ ------------- Manufacturing Overhead - - - - - ------------ ------------ ------------ ------------ ------------- TOTAL COST OF GOODS SOLD (3,089,476) (6,532,328) (2,521,368) (310,114) (12,453,286) ------------ ------------ ------------ ------------ ------------- GROSS PROFIT - - - - - ------------ ------------ ------------ ------------ ------------- OPERATING EXPENSES - - - - - ------------ ------------ ------------ ------------ ------------- Selling and Marketing - - - - - ------------ ------------ ------------ ------------ ------------- General and Administrative (370,304) (393,192) (600,050) (266,351) (1,589,897) ------------ ------------ ------------ ------------ ------------- Other: - - --------------------- ------------ ------------ ------------ ------------ ------------- TOTAL OPERATING EXPENSES $ (370,304) $ (393,192) $ (600,050) $ (226,351) (1,589,897) INCOME BEFORE INTEREST, DEPRECIATION TAXES OR EXTRAORDINARY EXPENSES $ (859,041) $(4,555,375) $(1,338,963) $ (470,596) $(7,223,975) ------------ ------------ ------------ ------------ ------------- INTEREST EXPENSE (2,060) (2,403) (2,987) (2,403) (9,853) ------------ ------------ ------------ ------------ ------------- MISCELLANEOUS - - 2 2,048 2,050 ------------ ------------ ------------ ------------ ------------- DEPRECIATION - - - - - ------------ ------------ ------------ ------------ ------------- INCOME TAX EXPENSE (BENEFIT) - - - - - ------------ ------------ ------------ ------------ ------------- WRITE-OFF OF DEFERRED FINANCING FEE (545,404) - - - (545,404) ------------ ------------ ------------ ------------ ------------- WRITE-OFF OF OTHER DEFERRED CHARGES (52,749) - - - (52,749) ------------ ------------ ------------ ------------ ------------- EXTRAORDINARY INCOME (EXPENSE) (1) - 537,969 - - 537,969 ------------ ------------ ------------ ------------ ------------- NET INCOME (LOSS) $(1,459,254) $(4,019,809) $(1,341,948) $ (470,951) $(7,291,962) ============ ============ ============ ============ =============
(1) Amount is a non-cash item representing the write-off of unrecognized gain on sale and leaseback transaction. CASE NAME: Kentucky Electric Steel, Inc. STATEMENT OF SOURCES AND USES OF CASH FORM OPR - 6 CASE NUMBER: 03-10078 MONTH ENDED: MAY REV 2/90
FILING FEBRUARY MARCH APRIL MAY TO DATE SOURCES OF CASH Income (Loss) From Operations $ (1,459,254) $(4,019,809) $(1,341,948) $( 470,951) $ (7,291,962) ----------- ----------- ----------- ----------- ----------- Add: Depreciation, Amortization & Other Non-Cash Items 558,815 (537,969) - - 20,846 ----------- ----------- ----------- ----------- ----------- CASH GENERATED FROM OPERATIONS (900,439) (4,557,778) (1,341,948) ( 470,951) (7,271,116) ----------- ----------- ----------- ----------- ----------- Add: Decrease in Assets: Accounts Receivable 1,259,490 2,505,711 3,140,372 694,185 7,599,758 ----------- ----------- ----------- ----------- ----------- Inventory 2,531,542 5,352,934 2,462,067 - 10,346,543 ----------- ----------- ----------- ----------- ----------- Prepaid Expenses & Deposits 350,110 581,381 69,875 218,699 1,220,065 ----------- ----------- ----------- ----------- ----------- Property, Plant & Equipment - - - - - ----------- ----------- ----------- ----------- ----------- Other: Change in Other Long-Tem Assets 3,726 43,461 - - 47,187 ----------- ----------- ----------- ----------- ----------- Increase in Liabilities: Pre Petition Liabilities - - - - - ----------- ----------- ----------- ----------- ----------- Post Petition Liabilities 497,818 244,841 164,274 191,913 1,098,846 ----------- ----------- ----------- ----------- ----------- TOTAL SOURCES OF CASH (A) $ 3,742,247 $ 4,170,550 $ 4,494,641 $ 633,846 $13,041,284 ----------- ----------- ----------- ----------- ----------- USES OF CASH Increase in Assets: Accounts Receivable $ - $ - $ - $ - $ - ----------- ----------- ----------- ----------- ----------- Inventory - - - - - ----------- ----------- ----------- ----------- ----------- Prepaid Expenses & Deposits - - - - - ----------- ----------- ----------- ----------- ----------- Property, Plant & Equipment - - - - - ----------- ----------- ----------- ----------- ----------- Other accured expenses - - ----------- ----------- ----------- ----------- ----------- Decrease in Liabilities: Pre Petition Liabilities $ 2,903,040 $ 4,811,310 $ 4,351,685 $ 592,376 $12,658,411 ----------- ----------- ----------- ----------- ----------- Post Petition Liabilities - - ----------- ----------- ----------- ----------- ----------- TOTAL USES OF CASH (B) $ 2,903,040 $ 4,811,310 $ 4,351,685 $ 592,376 $12,658,411 ----------- ----------- ----------- ----------- ----------- NET SOURCE (USE) OF CASH (A-B=NET) $ 839,207 $ (640,760) $ 142,956 $ 41,470 $ 382,874 ----------- ----------- ----------- ----------- ----------- CASH - BEGINNING BALANCE (See OPR-1) $ 1,092,575 $ 1,931,782 $ 1,291,022 $ 1,433,979 $ 1,092,575 ----------- ----------- ----------- ----------- ----------- CASH - ENDING BALANCE (See OPR-1) $ 1,931,782 $ 1,291,022 $ 1,433,979 $ 1,475,449 $ 1,475,449 =========== =========== =========== =========== ===========
CASE NAME: Kentucky Electric Steel, Inc. CASE NUMBER: 03-10078 CASH DISBURSEMENT DETAIL Date Payee Amount --------------- -------------------------------------------- ------------ Account #70936836 & 98239 5/6/2003 American Electric Power $ 17,905 5/19/2003 Alltel 208 5/19/2003 Ashland Office Supply 1,040 5/19/2003 AT&T 3,072 5/19/2003 BHE Environmental Inc 4,306 5/19/2003 Browning Ferris Ind 67 5/19/2003 AT&T Wireless Service 665 5/19/2003 Columbia Gas Of Kentucky 127 5/19/2003 Core Risk Services 2,028 5/19/2003 Custom Data Systems 216 5/19/2003 Hewlett-Packard Company 2,179 5/19/2003 IBM Corp 1,382 5/19/2003 IBM Corp 3,556 5/19/2003 Ikon Office Solutions 655 5/19/2003 Ios Capital 2,712 5/19/2003 Ivs Hydro 2,175 5/19/2003 American Electric Power 12 5/19/2003 Kentucky State Treasurer 1,054 5/19/2003 Lightyear Communications 697 5/19/2003 Marcum Material Handling 850 5/19/2003 Nations Rent 3,078 5/19/2003 The Reserves Network 1,891 5/19/2003 Safety Kleen Corp 1,670 5/19/2003 The Wackenhut Corporation 3,215 5/20/2003 American Electric Power 93 5/23/2003 NCB Analysis Charges 800 5/29/2003 Ashland Office Supply 488 5/29/2003 AT&T 19 5/29/2003 AT&T 1,053 5/29/2003 Hewlett Packard Express Serv 605 5/29/2003 Manpower 48 5/29/2003 Metlife 12 5/29/2003 PBCC 1,262 5/29/2003 Professional Maintenance 396 5/29/2003 The Reserves Network 1,986 5/29/2003 Storage On The Spot Inc. 466 5/29/2003 The Wackenhut Corporation 1,072 5/29/2003 U.S. Trustee 9,750 5/29/2003 Woodcock Brothers Trucking 669 5/29/2003 Xerox Corp 99 5/30/2003 IBM Auto Wire 2,275 Various FedEx 165 ----------------------- $ 76,017 ----------------------- Account 626225676 & 626225668 5/7/2003 Transfer 941 P/R Taxes Hourly Deposit # 1 $ 214 5/7/2003 Transfer 941 P/R Taxes Hourly Deposit # 1 1,362 5/7/2003 Transfer 941 P/R Taxes Hourly Deposit # 1 214 5/12/2003 Bank Service Charge - May 68 5/19/2003 Transfer 941 P/R Taxes Hourly Deposit # 2 794 5/19/2003 Transfer 941 P/R Taxes Hourly Deposit # 2 2,960 5/19/2003 Transfer 941 P/R Taxes Hourly Deposit # 2 794 5/19/2003 Transfer 941 P/R Taxes Hourly Deposit # 3 295 5/19/2003 Transfer 941 P/R Taxes Hourly Deposit # 3 2,025 5/19/2003 Transfer 941 P/R Taxes Hourly Deposit # 3 295 5/21/2003 Ky. Treasurer - Sales & Use Tax 7,937 5/21/2003 Transfer KIT Withholding 929 5/27/2003 Transfer KIT Withholding 424 ----------------------- $ 18,313 ----------------------- CASE NAME: Kentucky Electric Steel, Inc. CASE NUMBER: 03-10078 CASH DISBURSEMENT DETAIL Date Payee Amount --------------- -------------------------------------------- ----------------- Account # 39353008 5/5/2003 All Crane $ 14,310 5/8/2003 Columbia Gas 1,355 5/9/2003 CSX 226 5/14/2003 Yellow Transportation 149 5/15/2003 Salary Payroll 10,553 5/21/2003 Liebovich Steel & Aluminum 1,391 5/21/2003 William Gerak 3,375 5/22/2003 Industrias Montacargas 13,334 5/23/2003 Salary Payroll - Retention Bonus 4,756 5/29/2003 United Energy Inc. 846 5/29/2003 Tool Steel Service 1,625 5/30/2003 Salary Payroll 10,564 $ 62,485 ----------------------- Total $ 156,815 ======================= CASE NAME: Kentucky Electric Steel, Inc. CASE NUMBER: 03-10078 CASH RECEIPTS DETAIL Date Payee Amount --------------- -------------------------------------------- ----------------- Account #754119200 5/5/2003 Acier Leroux $ 1,707 5/5/2003 Acier Leroux 1,518 5/5/2003 Acier Leroux 704 5/5/2003 Acier Leroux 2,145 5/5/2003 Acier Leroux 8,555 5/5/2003 Acier Leroux Inc 6,703 5/27/2003 Acier Leroux Inc 1,383 5/27/2003 Acier Leroux Inc 1,301 5/27/2003 Acier Leroux Inc 1,391 5/27/2003 Acier Leroux Inc 921 5/7/2003 Adp Brokerage Services Group 35 5/19/2003 American Compressed 18,922 5/6/2003 Art Iron Inc 5,676 5/29/2003 Ashland Emergency Med Assoc 162 5/29/2003 Bank Of New York 1 5/9/2003 Beall Manufacturing 1,551 5/9/2003 Beall Manufacturing 5,480 5/20/2003 Benz Spring Co 5,882 5/20/2003 Benz Spring Co 1,895 5/19/2003 Ceco Buildings - Eastern 3,102 5/19/2003 Ceco Buildings - Eastern 1,508 5/19/2003 Ceco Buildings - Eastern 1,871 5/27/2003 Ceco Buildings - Southern 7,407 5/27/2003 Ceco Buildings - Southern 3,372 5/23/2003 Chrysler Financial 589 5/29/2003 Columbia Gas Of Kentucky 130 5/7/2003 Commercial Metals Company 2 5/7/2003 Compass Group 24 5/9/2003 Consumer Steel Products Co 7,478 5/19/2003 Consumer Steel Products Co 5,725 5/19/2003 Consumer Steel Products Co 2,460 5/20/2003 Consumer Steel Products Co 6,657 5/20/2003 Crown Steel Sales Inc 1,887 5/20/2003 Crown Steel Sales Inc 2,291 5/20/2003 Crown Steel Sales Inc 1,337 5/20/2003 Crown Steel Sales Inc 1,091 5/20/2003 Crown Steel Sales Inc 1,650 5/20/2003 Crown Steel Sales Inc 5,842 5/20/2003 Crown Steel Sales Inc 8,816 5/20/2003 Crown Steel Sales Inc 322 5/20/2003 Crown Steel Sales Inc 7,355 5/20/2003 Crown Steel Sales Inc 1,417 5/20/2003 Crown Steel Sales Inc 1,502 5/20/2003 Crown Steel Sales Inc 1,565 5/20/2003 Crown Steel Sales Inc 2,975 5/20/2003 Crown Steel Sales Inc 9,025 5/20/2003 Crown Steel Sales Inc 1,455 5/20/2003 Crown Steel Sales Inc 1,887 5/20/2003 Crown Steel Sales Inc 1,310 5/20/2003 Crown Steel Sales Inc 2,379 5/20/2003 Crown Steel Sales Inc 727 5/20/2003 Crown Steel Sales Inc 3,875 CASE NAME: Kentucky Electric Steel, Inc. CASE NUMBER: 03-10078 CASH RECEIPTS DETAIL Date Payee Amount --------------- -------------------------------------------- ----------------- 5/20/2003 Crown Steel Sales Inc 2,109 5/20/2003 Crown Steel Sales Inc 3,261 5/20/2003 Crown Steel Sales Inc 1,964 5/20/2003 Crown Steel Sales Inc 9,396 5/9/2003 Cutting Specialist Inc 708 5/9/2003 Cutting Specialist Inc 1,440 5/9/2003 Cutting Specialist Inc 1,052 5/9/2003 Earle M Jorgensen Co (Emj) 4,449 5/9/2003 Earle M Jorgensen Co (Emj) 2,735 5/9/2003 Earle M Jorgensen Co (Emj) 3,276 5/9/2003 Earle M Jorgensen Co (Emj) 4,830 5/9/2003 Earle M Jorgensen Co (Emj) 3,531 5/9/2003 Earle M Jorgensen Co (Emj) 1,663 5/9/2003 Earle M Jorgensen Co (Emj) 1,352 5/9/2003 Earle M Jorgensen Co (Emj) 2,534 5/9/2003 Earle M Jorgensen Co (Emj) 4,202 5/5/2003 Ennisteel 7,887 5/7/2003 Fisher Barton Inc 5,011 5/7/2003 Fisher Barton Inc 11,069 5/7/2003 Fisher Barton Inc 13,856 5/7/2003 Great Dane Trailers 5,526 5/23/2003 Herod And Associates Inc 1,442 5/5/2003 Hickman Williams 110,000 5/15/2003 Hickman Williams 110,000 5/7/2003 Huntington Ear Nose And Throat 18 5/20/2003 Jeffrey Chain 1,842 5/20/2003 Jeffrey Chain 7,987 5/7/2003 Landstar 721 5/23/2003 Nucor 4 5/12/2003 Oneal Steel Inc 7,531 5/12/2003 Oneal Steel Inc 7,597 5/7/2003 Pro Imaging Diagnostics 395 5/7/2003 Pro Trade Steel Company 245,459 5/29/2003 Roanoke Electric Steel Corp 1 5/7/2003 Ryerson Tull 1 5/7/2003 Simcoe Steel Ltd 11,142 5/29/2003 Steel Technologies Inc. 1 5/7/2003 The Lamar Companies 750 5/7/2003 Tri State Radiology, Psc 22 5/7/2003 Tri State Radiology, Psc 260 5/29/2003 Tri State Radiology, Psc 15 5/7/2003 University Of Kentucky 6 5/29/2003 University Physicians 61 5/23/2003 Whayne Supply Company 2,634 5/12/2003 Williams Steel & Hardware Co. 1,000 5/23/2003 Woodward Marketing 13,101 5/7/2003 Xerox Corporation Usa 509 ---------------- $ 790,662 ================