EXHIBIT 99.1
UNITED STATES BANKRUPTCY COURT
DISTRICT OF DELAWARE
In re: Real Industry, Inc., et al. | Case No. 17-12464 (KJC) |
Debtors | Reporting Period: January 1, 2018 – January 31, 2018 |
MONTHLY OPERATING REPORT
Submit copy of report to any official committee appointed in the case.
| | | |
REQUIRED DOCUMENTS | Form No. | Document Attached | Explanation Attached |
Schedule of Cash Receipts and Disbursements | MOR-1 | | |
Schedule of Debtor Bank Account Balances | MOR-1b | | |
Schedule of Professional Fees and Expenses Paid | MOR-1c | | |
Copies of bank statements | | Available to the U.S. Trustee upon request. | |
Cash disbursements journals | | Available to the U.S. Trustee upon request. | |
Statement of Operations | MOR-2 | | |
Balance Sheet | MOR-3 | | |
Summary of unpaid post-petition debts | MOR-4 | | |
Accounts Receivable Aging | MOR-5 | | |
Debtor Questionnaire | MOR-5 | | |
I declare under penalty of perjury (28 U.S.C. Section 1746) that this report and the attached documents are true and correct to the best of my knowledge and belief.
/s/ Michael J. Hobey | | 2/20/2018 |
Signature of Authorized Individual* | | Date |
| | |
Michael J. Hobey | | President and Interim CEO |
Printed Name of Authorized Individual | | Title of Authorized Individual |
*Authorized individual must be an officer, director, or shareholder if debtor is a corporation; a partner if debtor is a partnership; a manager or member if debtor is a limited liability company.
IN THE UNITED STATES BANKRUPTCY COURT
FOR THE DISTRICT OF DELAWARE
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) | |
In re: | ) | Chapter 11 |
) | |
REAL INDUSTRY, INC., et al. | ) | Case No. 17-12464 (KJC) |
) | |
Debtors.1 | ) | (Jointly Administered) |
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CERTIFICATION REGARDING POST-PETITION BANK ACCOUNT RECONCILIATIONS AND COMPLIANCE AND PAYMENT OF POST-PETITION TAXES
I, Michael J. Hobey, President and Interim Chief Executive Officer of Real Industry, Inc. and its affiliated debtors and debtors-in-possession (collectively, the “Debtors”), hereby certifies as follows:
| 1. | | Attached to MOR-1 is a listing of the Debtors’ bank accounts, by account number, and the closing balances. These accounts are reconciled monthly in accordance with the Debtors’ ordinary course accounting practices and, together with the Debtors’ bank statements and cash disbursements journals, are available to the United States Trustee upon request. |
| 2. | | To the best of my knowledge and belief, the Debtors are current on all post-petition taxes, and no post-petition tax amounts are past due. |
/s/ Michael J. Hobey | | 2/20/2018 |
Michael J. Hobey | | Date |
President and Interim Chief Executive Officer | | |
1 The Debtors in the above-captioned chapter 11 cases, along with the last four digits of each Debtor’s federal tax identification number, are Real Industry, Inc. (3818), Real Alloy Intermediate Holding, LLC (7447), Real Alloy Holding, Inc. (2396), Real Alloy Recycling, Inc. (9798), Real Alloy Bens Run, LLC (3083), Real Alloy Specialty Products, Inc. (9911), Real Alloy Specification, Inc. (9849), ETS Schaefer, LLC (9350), and RA Mexico Holding, LLC (4620). The principal place of business for the Real Alloy Debtors is 3700 Park East Drive, Suite 300, Beachwood, Ohio 44122.
UNITED STATES BANKRUPTCY COURT
DISTRICT OF DELAWARE
| |
In re: Real Industry, Inc., et al. | Case No. 17-12464 (KJC) |
Debtors | Reporting Period: January 1, 2018 – January 31, 2018 |
General Notes
This Monthly Operating Report ("MOR") has been prepared solely for the purpose of complying with the monthly reporting requirements applicable in these bankruptcy cases. The financial information contained herein is unaudited, preliminary in nature, and, as discussed below, not prepared in accordance with accounting principles generally accepted in the United States of America ("U.S. GAAP"). Such financial statements represent the Debtors’ good faith attempt to comply with the requirements of the United States Trustee using resources available. This information is specifically limited to the reporting period and limited in scope to the requirements of this report. These unaudited financial statements have not been subject to procedures that would typically be applied to financial information presented in accordance with U.S. GAAP, and upon application of such procedures, the Debtors believe that the financial information could be subject to changes which could be material. Certain totals may not sum due to rounding.
The results of operations contained herein are not necessarily indicative of the results which may be expected from any other period or for the full year and may not necessarily reflect the results of operations, financial position and schedule of receipts and disbursements in the future. The amounts in MOR 3 currently classified as liabilities subject to compromise may be subject to future change as the Debtors complete their analysis of pre and post-petition liabilities, including the reconciliation of intercompany balances. The Debtors caution readers not to place undue reliance on the MOR. There can be no assurance that such information is complete and the MOR may be subject to revision.
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In re: Real Industry, Inc., et al. | Case No. 17-12464 (KJC) |
Debtors | Reporting Period: January 1, 2018 – January 31, 2018 |
SCHEDULE OF CASH RECEIPTS AND DISBURSEMENTS
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | Real
Industry,
Inc | | Real
Alloy
Intermediate
Holding,
LLC | | Real
Alloy
Holding,
Inc. | | Real
Alloy
Recycling,
Inc. | | Real
Alloy
Bens Run,
LLC | | Real
Alloy
Specialty
Products,
Inc. | | Real
Alloy
Specification,
Inc. | | ETS
Schaefer,
LLC | | RA
Mexico
Holding,
LLC | | Total
Filer
(Month
Ended
01/31/2018) | | Total
Filer
(Cumulative
Since
Filing) | | Notes | |
Beginning Cash Balance (Book) | | $ | 2,547,898 | | $ | - | | $ | - | | $ | 5,817,701 | | $ | - | | $ | - | | $ | - | | $ | 444 | | $ | - | | $ | 8,366,043 | | $ | 4,663,014 | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Cash Receipts | | | 1,706 | | | - | | | 40,400 | | | 24,218,037 | | | - | | | 1,245,264 | | | 38,872,524 | | | 676,877 | | | - | | | 65,054,806 | | | 123,160,936 | | | |
Interest Income | | | 104 | | | - | | | - | | | - | | | - | | | - | | | - | | | - | | | - | | | 104 | | | 427 | | | |
Total Receipts | | | 1,810 | | | - | | | 40,400 | | | 24,218,037 | | | - | | | 1,245,264 | | | 38,872,524 | | | 676,877 | | | - | | | 65,054,911 | | | 123,161,363 | | | |
Cash Disbursements | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Metals | | | - | | | - | | | - | | | (15,038,489) | | | - | | | (1,261,186) | | | (27,703,948) | | | (272,919) | | | - | | | (44,276,542) | | | (84,217,439) | | | |
Wages, Payroll, HR & Related | | | (140,618) | | | - | | | - | | | (3,039,690) | | | - | | | (115,324) | | | (1,654,711) | | | (273,958) | | | - | | | (5,224,301) | | | (15,782,204) | | | |
Interco w/Canada | | | - | | | - | | | - | | | (62,058) | | | - | | | - | | | - | | | - | | | - | | | (62,058) | | | (1,036,786) | | | |
Freight | | | - | | | - | | | - | | | (1,086,473) | | | - | | | (46,183) | | | (945,160) | | | (10,602) | | | - | | | (2,088,418) | | | (4,681,298) | | | |
Flux | | | - | | | - | | | - | | | (582,187) | | | - | | | - | | | (267,275) | | | - | | | - | | | (849,462) | | | (2,121,513) | | | |
Banking & Financial | | | - | | | - | | | - | | | (900,349) | | | - | | | (11,964) | | | (52,118) | | | - | | | - | | | (964,431) | | | (2,277,529) | | | |
Packaging & Storage | | | - | | | - | | | - | | | (162,177) | | | - | | | (13,439) | | | (37,718) | | | (3,594) | | | - | | | (216,929) | | | (421,676) | | | |
Industrial Waste | | | - | | | - | | | - | | | (457,609) | | | - | | | (4,107) | | | (21,744) | | | - | | | - | | | (483,460) | | | (843,566) | | | |
Interco w/Goodyear | | | - | | | - | | | - | | | (203,695) | | | - | | | - | | | - | | | - | | | - | | | (203,695) | | | (562,296) | | | |
Insurance | | | - | | | - | | | - | | | (301,921) | | | - | | | - | | | (38,497) | | | - | | | - | | | (340,418) | | | (573,871) | | | |
SG&A & Other | | | 15,461 | | | - | | | (86,554) | | | (1,141,615) | | | (15,537) | | | (17,270) | | | (453,010) | | | (52,050) | | | - | | | (1,750,574) | | | (3,270,618) | | | |
Tax Authority | | | - | | | - | | | - | | | (94,560) | | | - | | | - | | | - | | | - | | | - | | | (94,560) | | | (267,895) | | | |
Equipment, Parts, Supplies & Related | | | - | | | - | | | - | | | (868,803) | | | - | | | (72,407) | | | (393,983) | | | (114,263) | | | - | | | (1,449,456) | | | (2,241,124) | | | |
Construction/Fabrication | | | - | | | - | | | - | | | (221,744) | | | - | | | (1,231) | | | (12,600) | | | - | | | - | | | (235,574) | | | (365,289) | | | |
Chemicals & Lubricants | | | - | | | - | | | - | | | (273,660) | | | - | | | (3,241) | | | (146,069) | | | - | | | - | | | (422,970) | | | (581,722) | | | |
Cleaning & Waste Management | | | - | | | - | | | - | | | (216,722) | | | - | | | - | | | (55,713) | | | - | | | - | | | (272,435) | | | (385,709) | | | |
Utilities | | | - | | | - | | | - | | | (1,370,216) | | | (139) | | | (18,060) | | | (511,245) | | | (4,344) | | | - | | | (1,904,004) | | | (2,482,432) | | | |
Total Operating Disbursements | | | (125,157) | | | - | | | (86,554) | | | (26,021,967) | | | (15,677) | | | (1,564,410) | | | (32,293,790) | | | (731,730) | | | - | | | (60,839,285) | | | (122,112,969) | | (A) | |
Restructuring Related Disbursements | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Professional Fees | | | - | | | - | | | (720,966) | | | - | | | - | | | - | | | - | | | - | | | - | | | (720,966) | | | (1,537,629) | | | |
Adequate Assurance Deposit | | | - | | | - | | | - | | | - | | | - | | | - | | | - | | | - | | | - | | | - | | | (2,102,947) | | | |
Deposit - Derivatives | | | - | | | - | | | (2,500,000) | | | - | | | - | | | - | | | - | | | - | | | - | | | (2,500,000) | | | (2,500,000) | | | |
US Trustee Fees | | | (4,875) | | | (325) | | | (9,750) | | | (30,000) | | | (325) | | | (6,500) | | | (20,000) | | | (4,875) | | | (325) | | | (76,975) | | | (76,975) | | | |
Total Restructuring Related Disbursements | | | (4,875) | | | (325) | | | (3,230,716) | | | (30,000) | | | (325) | | | (6,500) | | | (20,000) | | | (4,875) | | | (325) | | | (3,297,941) | | | (6,217,551) | | (A) | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Net Cash Flow Prior to Financing Activities | | | (128,222) | | | (325) | | | (3,276,871) | | | (1,833,931) | | | (16,002) | | | (325,646) | | | 6,558,734 | | | (59,728) | | | (325) | | | 917,684 | | | (5,169,157) | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Financing Activities | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
DIP Term Loan Borrowings | | | 4,000,000 | | | - | | | - | | | - | | | - | | | - | | | - | | | - | | | - | | | 4,000,000 | | | 44,000,000 | | | |
DIP Term Loan Fees | | | (200,000) | | | - | | | - | | | (1,479,444) | | | - | | | - | | | - | | | - | | | - | | | (1,679,444) | | | (5,404,444) | | (A) | |
DIP ABL Borrowings | | | - | | | - | | | - | | | 65,373,242 | | | - | | | - | | | - | | | - | | | - | | | 65,373,242 | | | 133,472,151 | | | |
DIP ABL Paydown | | | - | | | - | | | - | | | (62,346,895) | | | - | | | - | | | - | | | - | | | - | | | (62,346,895) | | | (62,432,053) | | (A) | |
DIP ABL Fees and Interest | | | - | | | - | | | - | | | (383,323) | | | - | | | - | | | - | | | - | | | - | | | (383,323) | | | (1,485,322) | | (A) | |
Pre-Petition ABL Paydown | | | - | | | - | | | - | | | - | | | - | | | - | | | - | | | - | | | - | | | - | | | (93,297,972) | | (A) | |
Pre-Petition Fees and Interest | | | - | | | - | | | - | | | (31,609) | | | - | | | - | | | - | | | - | | | - | | | (31,609) | | | (130,518) | | (A) | |
Total Financing Activities | | | 3,800,000 | | | - | | | - | | | 1,131,970 | | | - | | | - | | | - | | | - | | | - | | | 4,931,970 | | | 14,721,841 | | | |
Net Cash Flow | | | 3,671,778 | | | (325) | | | (3,276,871) | | | (701,960) | | | (16,002) | | | (325,646) | | | 6,558,734 | | | (59,728) | | | (325) | | | 5,849,655 | | | 9,552,684 | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Cash Sweep | | | - | | | 325 | | | 3,276,871 | | | 2,960,014 | | | 16,002 | | | 325,646 | | | (6,558,734) | | | (20,448) | | | 325 | | | 0 | | | (0) | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Ending Cash Balance (Book) | | $ | 6,219,676 | | $ | - | | $ | - | | $ | 8,075,754 | | $ | - | | $ | - | | $ | - | | $ | (79,732) | | $ | - | | $ | 14,215,698 | | $ | 14,215,698 | | | |
Disbursements for Calculating Quarterly
US Trustee Fees. [sum of Notes (A)] | | $ | 330,032 | | $ | 325 | | $ | 3,317,270 | | $ | 90,293,239 | | $ | 16,002 | | $ | 1,570,910 | | $ | 32,313,790 | | $ | 736,605 | | $ | 325 | | $ | 128,578,498 | | $ | 291,080,830 | | | |
Notes:
(A) In the November 2017 Monthly Operating Report ("MOR"), the Debtors reported two bank account balances totaling $122,182 as accounts of the Debtors that subsequently were determined to be non-debtor bank accounts. The
beginning cash balances have been adjusted to reflect this correction.
MOR-1: Schedule of Receipts and Disbursements
| |
In re: Real Industry, Inc., et al. | Case No. 17-12464 (KJC) |
Debtors | Reporting Period: January 1, 2018 – January 31, 2018 |
SCHEDULE OF DEBTOR BANK ACCOUNT BALANCES*
Bank Account | | Bank | | Real
Industry,
Inc | | Real Alloy
Intermediate
Holding, LLC | | Real Alloy
Holding, Inc. | | Real Alloy
Recycling, Inc. | | Real Alloy
Bens Run, LLC | | Real
Alloy
Specialty
Products,
Inc. | | Real Alloy
Specification,
Inc. | | ETS Schaefer,
LLC | | RA
Mexico
Holding,
LLC | | Consolidated | |
xxxxx09712 - ETS Schaefer LLC Receipts | | Bank of America | | | | | | | | | | | | | | | | | | | | | 1,293 | | | | | | | | $ | 1,293 | |
xxxxx31011 - ETS Schaefer LLC Disbursements | | Bank of America | | | | | | | | | | | | | | | | | | | | | 85,271 | | | | | | | | $ | 85,271 | |
xxxxx31030 - Real Alloy Recycling Inc Payroll Account | | Bank of America | | | | | | | | | | | | 197,787 | | | | | | | | | | | | | | | | | $ | 197,787 | |
xxxxx31016 - Real Alloy Recycling Inc Accounts Payable | | Bank of America | | | | | | | | | | | | 2,716,511 | | | | | | | | | | | | | | | | | $ | 2,716,511 | |
xxxxx09675 - Real Alloy Recycling Inc 3rd Party Funding Account | | Bank of America | | | | | | | | | | | | 231,719 | | | | | | | | | | | | | | | | | $ | 231,719 | |
xxxxx09656 - Real Alloy Recycling Inc Receivables Account | | Bank of America | | | | | | | | | | | | 193,273 | | | | | | | | | | | | | | | | | $ | 193,273 | |
xxxxx09651 - Real Alloy Recycling Inc Concentration Account | | Bank of America | | | | | | | | | | | | 3,272 | | | | | | | | | | | | | | | | | $ | 3,272 | |
xxxxx09670 - Real Alloy Recycling Inc Adequate Assurance Account | | Bank of America | | | | | | | | | | | | 1,295,144 | | | | | | | | | | | | | | | | | $ | 1,295,144 | |
xxxxx75014 - Real Alloy Holding, Inc Corp Trust (GBP) | | Bank of America | | | | | | | | | 161,054 | | | | | | | | | | | | | | | | | | | | $ | 161,054 | |
xxxxx75022 - Real Alloy Holding, Inc Corp Trust (EUR) | | Bank of America | | | | | | | | | 614 | | | | | | | | | | | | | | | | | | | | $ | 614 | |
xxxxxx4386 - Real Alloy Recycling Inc Concentration Account | | Wintrust | | | | | | | | | | | | 3,851 | | | | | | | | | | | | | | | | | $ | 3,851 | |
xxxxxx87819 - Real Alloy Holding, Inc Bondholder Escrow Account | | JP Morgan Chase | | | | | | | | | 4,999,975 | | | | | | | | | | | | | | | | | | | | $ | 4,999,975 | |
xxxxx23243 - Real Industry Inc Collateral Account for Letter of Credit | | Wells Fargo | | | 722,184 | | | | | | | | | | | | | | | | | | | | | | | | | | $ | 722,184 | |
xxxxx96415 - Real Industry, Inc | | Wells Fargo | | | 5,533,027 | | | | | | | | | | | | | | | | | | | | | | | | | | $ | 5,533,027 | |
| | | | $ | 6,255,212 | | $ | - | | $ | 5,161,642 | | $ | 4,641,558 | | $ | - | | $ | - | | $ | - | | $ | 86,563 | | $ | - | | $ | 16,144,975 | |
*Balances per bank records as of January 31, 2018.
MOR-1b: Schedule of Bank Account Balances
| |
In re: Real Industry, Inc., et al. | Case No. 17-12464 (KJC) |
Debtors | Reporting Period: January 1, 2018 – January 31, 2018 |
SCHEDULE OF PROFESSIONAL FEES AND EXPENSES PAID
| | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | CHECK | | AMOUNT PAID | | CUMULATIVE PAID
SINCE PETITION DATE | |
PAYEE | | PERIOD | | AMOUNT | | PAYOR | | NUMBER | | DATE | | FEES | | EXPENSES | | FEES | | EXPENSES | |
Alvarez & Marsal Securities, LLC | | Jan-18 | | $ | 129,144 | | Real Alloy Holding, Inc | | Wire | | Jan-18-2018 | | $ | 125,000 | | $ | 4,144 | | $ | 251,172 | | $ | 4,144 | |
Berkeley Research Group, LLC | | Jan-18 | | | - | | | | | | | | | | | | | | | 130,868 | | | 7,765 | |
Latham & Watkins LLP | | Jan-18 | | | - | | | | | | | | | | | | | | | 447,275 | | | 54,583 | |
Prime Clerk | | Jan-18 | | | - | | | | | | | | | - | | | - | | | 50,000 | | | - | |
Brown Ruddick | | Jan-18 | | | 285,182 | | Real Alloy Holding, Inc | | Wire | | Jan-31-2018 | | | 277,851 | | | 7,332 | | | 277,851 | | | 7,332 | |
Young Conaway Stargatt & Taylor, LLP | | Jan-18 | | | 24,108 | | Real Alloy Holding, Inc | | ACH | | Jan-10-2018 | | | 23,485 | | | 623 | | | 23,485 | | | 623 | |
Goldberg Kohn Bell Black | | Jan-18 | | | 141,945 | | Real Alloy Holding, Inc | | Wire | | Jan-10-2018 | | | 141,945 | | | - | | | 141,945 | | | - | |
Environmental Resources Management | | Jan-18 | | | 137,000 | | Real Alloy Holding, Inc | | 1100040402 | | Jan-17-2018 | | | 137,000 | | | - | | | 137,000 | | | - | |
Smartroom | | Jan-18 | | | 3,587 | | Real Alloy Holding, Inc | | ACH | | Jan-17-2018 | | | 3,587 | | | - | | | 3,587 | | | - | |
| | | | $ | 720,966 | | | | | | | | $ | 708,868 | | $ | 12,099 | | $ | 1,463,182 | | $ | 74,447 | |
MOR-1c: Schedule of Professional Fees and Expenses Paid
| |
In re: Real Industry, Inc., et al. | Case No. 17-12464 (KJC) |
Debtors | Reporting Period: January 1, 2018 – January 31, 2018 |
CONSOLIDATING STATEMENT OF OPERATIONS
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | Total Filer
(Month
Ended
01/31/2018) | | Eliminations | | Real
Industry,
Inc | | Real Alloy
Intermediate
Holding,
Inc. | | Real Alloy
Holding,
Inc. | | Real Alloy
Recycling, Inc. | | Real Alloy
Specification,
Inc. | | Real Alloy
Specialty
Products, Inc. | | ETS
Schaefer, LLC | | Real Alloy
Bens Run,
LLC | | RA Mexico
Holding, LLC | | Total Filer
(Cumulative
Since Filing) |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Gross Revenue | | $ | 53,185,167 | | $ | (4,807,896) | | $ | 104 | | $ | - | | $ | - | | $ | 25,313,782 | | $ | 30,443,181 | | $ | 1,428,286 | | $ | 807,710 | | $ | - | | $ | - | | $ | 124,517,977 |
Total Cost of Sales | | | 50,900,888 | | | (4,807,896) | | | - | | | - | | | - | | | 24,242,642 | | | 29,300,098 | | | 1,467,783 | | | 683,696 | | | 14,565 | | | - | | | 118,248,642 |
Gross Profits | | | 2,284,279 | | | - | | | 104 | | | - | | | - | | | 1,071,140 | | | 1,143,083 | | | (39,497) | | | 124,014 | | | (14,565) | | | - | | | 6,269,335 |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Total SGA Expenses | | | 4,425,118 | | | - | | | 153,260 | | | - | | | 1,403,624 | | | 2,654,493 | | | 171,978 | | | 41,763 | | | - | | | - | | | - | | | 10,820,141 |
Total (Gains) Losses on Derivative Financial Instruments | | | - | | | - | | | - | | | - | | | - | | | - | | | - | | | - | | | - | | | - | | | - | | | (16,691) |
Other Operating (Income) Expense - Net | | | - | | | - | | | - | | | - | | | - | | | - | | | - | | | - | | | - | | | - | | | - | | | 64,860 |
Operating Income (Loss) | | | (2,140,839) | | | - | | | (153,156) | | | - | | | (1,403,624) | | | (1,583,353) | | | 971,105 | | | (81,260) | | | 124,014 | | | (14,565) | | | - | | | (4,598,975) |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Net Interest Expense & Fees | | | 4,177,812 | | | - | | | - | | | - | | | 2,433,498 | | | 1,738,459 | | | 5,324 | | | 508 | | | 23 | | | - | | | - | | | 8,752,948 |
Total Foreign Currency Gains/Losses | | | (1,586,275) | | | - | | | - | | | - | | | (1,578,500) | | | (7,775) | | | - | | | - | | | - | | | - | | | - | | | (2,578,255) |
Net Mgmt Fee Expense (Income) | | | 223,043 | | | - | | | - | | | - | | | - | | | 223,043 | | | - | | | - | | | - | | | - | | | - | | | 464,786 |
Other Expenses | | | - | | | - | | | - | | | - | | | - | | | - | | | - | | | - | | | - | | | - | | | - | | | (182) |
Income Before Taxes | | | (4,955,419) | | | - | | | (153,156) | | | - | | | (2,258,622) | | | (3,537,080) | | | 965,781 | | | (81,768) | | | 123,991 | | | (14,565) | | | - | | | (11,238,272) |
Income Tax Expenses | | | 5,750 | | | - | | | - | | | - | | | 5,750 | | | - | | | - | | | - | | | - | | | - | | | - | | | 9,439 |
Net Income From Continuing Operations | | | (4,961,169) | | | - | | | (153,156) | | | - | | | (2,264,372) | | | (3,537,080) | | | 965,781 | | | (81,768) | | | 123,991 | | | (14,565) | | | - | | | (11,247,711) |
Net Income | | $ | (4,961,169) | | $ | - | | $ | (153,156) | | $ | - | | $ | (2,264,372) | | $ | (3,537,080) | | $ | 965,781 | | $ | (81,768) | | $ | 123,991 | | $ | (14,565) | | $ | - | | $ | (11,247,711) |
MOR-2: Statement of Operations
| |
In re: Real Industry, Inc., et al. | Case No. 17-12464 (KJC) |
Debtors | Reporting Period: January 1, 2018 – January 31, 2018 |
CONSOLIDATING BALANCE SHEET
| | Total Filer | | Eliminations | | Real
Industry, Inc. | | Real Alloy
Intermediate
Holding, Inc. | | Real Alloy
Holding, Inc. | | Real Alloy
Recycling,
Inc. | | Real Alloy
Specification,
Inc. | | Real Alloy
Specialty
Products, Inc. | | ETS
Schaefer,
LLC | | Real Alloy
Bens
Run, LLC | | Real Alloy
Mexico
Holding LLC | |
ASSETS | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Current Assets: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Total Cash & Equivalents | | $ | 14,215,698 | | $ | - | | $ | 6,219,676 | | $ | - | | $ | - | | $ | 8,075,754 | | $ | - | | $ | - | | $ | (79,732) | | $ | - | | $ | - | |
Net Accounts Receivable | | | 71,567,917 | | | - | | | 2,769 | | | - | | | (44,291) | | | 27,236,845 | | | 42,034,891 | | | 1,097,471 | | | 1,240,232 | | | - | | | - | |
Total Current Interco Receivable | | | 30,337,581 | | | (553,242) | | | - | | | - | | | (38,584,357) | | | 13,764,426 | | | 47,049,254 | | | 8,570,458 | | | 665,883 | | | (574,841) | | | - | |
Net Inventories | | | 60,374,107 | | | - | | | - | | | - | | | - | | | 22,570,028 | | | 32,897,999 | | | 4,306,508 | | | 599,572 | | | - | | | - | |
Total Prepaid Expenses | | | 20,841,720 | | | - | | | 871,669 | | | - | | | 18,967 | | | 12,439,674 | | | 7,388,388 | | | 123,022 | | | - | | | - | | | - | |
Total Other Current Assets | | | 13,020,292 | | | - | | | - | | | - | | | 803,371 | | | 8,899,789 | | | 2,944,061 | | | 373,071 | | | - | | | - | | | - | |
Total Current Assets | | | 210,357,316 | | | (553,242) | | | 7,094,115 | | | - | | | (37,806,310) | | | 92,986,516 | | | 132,314,593 | | | 14,470,530 | | | 2,425,955 | | | (574,841) | | | - | |
Property, Plant & Equipment, Net | | | 148,356,948 | | | - | | | 28,495 | | | - | | | - | | | 100,747,624 | | | 39,961,969 | | | 3,154,810 | | | 2,549,688 | | | 1,914,362 | | | - | |
Other Intangibles, Net | | | 9,916,667 | | | - | | | - | | | - | | | 9,916,667 | | | - | | | - | | | - | | | - | | | - | | | - | |
Total Equity Investments in Subs | | | 68,990,987 | | | (509,628,415) | | | 156,587,624 | | | - | | | 303,469,839 | | | 118,561,938 | | | - | | | - | | | - | | | - | | | 1 | |
Total Hedges, L/T | | | - | | | - | | | - | | | - | | | - | | | - | | | - | | | - | | | - | | | - | | | - | |
Total L/T Deferred Tax Assets | | | (176,343) | | | - | | | (176,343) | | | - | | | - | | | - | | | - | | | - | | | - | | | - | | | - | |
Total L/T Interco Receivable | | | 87,713,299 | | | (35,581,838) | | | 28,214,444 | | | - | | | 59,498,855 | | | 35,581,838 | | | - | | | - | | | - | | | - | | | - | |
Other L/T Assets, Net | | | 7,771,638 | | | - | | | - | | | - | | | - | | | 7,474,194 | | | 290,132 | | | 7,948 | | | - | | | (636) | | | - | |
Total Assets | | $ | 532,930,512 | | $ | (545,763,495) | | $ | 191,748,335 | | $ | - | | $ | 335,079,051 | | $ | 355,352,110 | | $ | 172,566,694 | | $ | 17,633,288 | | $ | 4,975,643 | | $ | 1,338,885 | | $ | 1 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
LIABILITIES & STOCKHOLDERS' EQUITY | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Liabilities: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Total Accounts Payable | | $ | 26,943,528 | | $ | - | | $ | 23,080 | | $ | - | | $ | 316,175 | | $ | 16,200,341 | | $ | 9,265,561 | | $ | 905,628 | | $ | 217,135 | | $ | 15,608 | | $ | - | |
Accrued & Other Current Liabilities (A) | | | 7,278,281 | | | - | | | 784,654 | | | - | | | 170,000 | | | 4,360,350 | | | 1,661,449 | | | 105,161 | | | 150,690 | | | 45,977 | | | - | |
Total F/V S/T Hedge Liab. Contracts | | | 30,495 | | | - | | | - | | | - | | | 30,495 | | | - | | | - | | | - | | | - | | | - | | | - | |
Toll Liability | | | 5,116,913 | | | - | | | - | | | - | | | - | | | 283,064 | | | 4,833,849 | | | - | | | - | | | - | | | - | |
Accrued Interest | | | 3,666,988 | | | - | | | - | | | - | | | 3,494,444 | | | 172,544 | | | - | | | - | | | - | | | - | | | - | |
Total Cur. Def. Tax Liability | | | - | | | - | | | - | | | - | | | - | | | - | | | - | | | - | | | - | | | - | | | - | |
Total Current Interco Payable | | | 25,347,453 | | | (552,504) | | | 4,892 | | | - | | | 11,838,971 | | | 14,291,794 | | | 3,123,749 | | | 423,900 | | | (3,783,349) | | | - | | | - | |
Current Maturities of L/T Debt | | | 280,785,515 | | | - | | | 3,800,000 | | | - | | | 167,190,081 | | | 109,140,648 | | | 599,315 | | | 53,664 | | | 1,807 | | | - | | | - | |
Liabilities of Discontinued Operations - Current | | | - | | | - | | | - | | | - | | | - | | | - | | | - | | | - | | | - | | | - | | | - | |
Total Current Liabilities | | | 349,169,173 | | | (552,504) | | | 4,612,626 | | | - | | | 183,040,167 | | | 144,448,741 | | | 19,483,923 | | | 1,488,353 | | | (3,413,717) | | | 61,585 | | | - | |
Total L/T Debt | | | 2,178,055 | | | - | | | - | | | - | | | - | | | 1,323,744 | | | 776,068 | | | 72,578 | | | 5,665 | | | - | | | - | |
Total L/T I/C Payable | | | (9,934,368) | | | (35,582,577) | | | - | | | - | | | 25,359,981 | | | 288,227 | | | 1 | | | - | | | - | | | - | | | - | |
Total Other L/T Liabilities (B) | | | 12,154,821 | | | - | | | 2,023,154 | | | - | | | - | | | 4,189,245 | | | 5,844,772 | | | 72,650 | | | 25,000 | | | - | | | - | |
Total L/T Liabilities | | | 4,398,508 | | | (35,582,577) | | | 2,023,154 | | | - | | | 25,359,981 | | | 5,801,216 | | | 6,620,841 | | | 145,228 | | | 30,665 | | | - | | | - | |
Total Liabilities - Subject to Compromise - External | | | 220,617,798 | | | | | | 29,291,990 | | | - | | | 145,797,890 | | | 21,595,898 | | | 22,429,252 | | | 930,059 | | | 545,419 | | | 27,289 | | | - | |
Total Liabilities - Subject to Compromise - Internal | | | - | | | - | | | - | | | - | | | - | | | - | | | - | | | - | | | - | | | - | | | - | |
Total Liabilities - Subject to Compromise | | | 220,617,798 | | | - | | | 29,291,990 | | | - | | | 145,797,890 | | | 21,595,898 | | | 22,429,252 | | | 930,059 | | | 545,419 | | | 27,289 | | | - | |
Total Liabilities | | | 574,185,479 | | | (36,135,081) | | | 35,927,770 | | | - | | | 354,198,038 | | | 171,845,855 | | | 48,534,016 | | | 2,563,640 | | | (2,837,633) | | | 88,874 | | | - | |
Stockholders' Equity: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Common Stock - Total | | | 29,807 | | | - | | | 29,807 | | | - | | | - | | | - | | | - | | | - | | | - | | | - | | | - | |
Additional Paid-In Capital - Total | | | 544,495,523 | | | (509,628,414) | | | 544,495,523 | | | - | | | 173,259,645 | | | 222,511,312 | | | 99,016,761 | | | 8,906,982 | | | 3,940,748 | | | 1,992,965 | | | 1 | |
Retained Earnings | | | (575,024,595) | | | - | | | (388,704,764) | | | - | | | (181,622,931) | | | (39,005,057) | | | 25,015,917 | | | 6,162,666 | | | 3,872,528 | | | (742,954) | | | - | |
Total Other Comprehensive Income/(Loss) | | | (10,755,701) | | | - | | | | | | - | | | (10,755,701) | | | - | | | - | | | - | | | - | | | - | | | - | |
Total Stockholders' Equity | | | (41,254,967) | | | (509,628,414) | | | 155,820,565 | | | - | | | (19,118,987) | | | 183,506,255 | | | 124,032,678 | | | 15,069,648 | | | 7,813,276 | | | 1,250,011 | | | 1 | |
Total Liabilities & Equity | | $ | 532,930,512 | | $ | (545,763,495) | | $ | 191,748,335 | | $ | - | | $ | 335,079,051 | | $ | 355,352,110 | | $ | 172,566,694 | | $ | 17,633,288 | | $ | 4,975,643 | | $ | 1,338,885 | | $ | 1 | |
Notes:
(A) Includes certain prepetition claims for wages and taxes approved by the Court and costs related to potential future environmental remediation.
(B) Includes costs related to potential future environmental remediation and tax liabilities.
| |
In re: Real Industry, Inc., et al. | Case No. 17-12464 (KJC) |
Debtors | Reporting Period: January 1, 2018 – January 31, 2018 |
SUMMARY OF UNPAID POST-PETITION DEBTS
| | | |
| | Current |
Accounts Payable | | $ | 26,943,528 |
MOR-4: Summary of Unpaid Post-Petition Debts
| |
In re: Real Industry, Inc., et al. | Case No. 17-12464 (KJC) |
Debtors | Reporting Period: January 1, 2018 – January 31, 2018 |
ACCOUNTS RECEIVABLE AGING
| | | | | | | | | | | | | | | |
Accounts Receivable Aging | | 0-30 Days | | 31-60 Days | | 61-90 Days | | 91 Days + | | Total |
| | | | | | | | | | | | | | | |
Accounts Receivable | | $ | 68,839,130 | | $ | 2,017,647 | | $ | 1,100,075 | | $ | 24,944 | | $ | 71,981,796 |
Unapplied Funds | | | | | | | | | | | | | | | (122,879) |
Allowance for Doubtful Accounts | | | | | | | | | | | | | | | (291,000) |
| | | | | | | | | | | | | | $ | 71,567,917 |
DEBTOR QUESTIONNAIRE
Must be completed each month | Yes | No |
1. Have any assets been sold or transferred outside the normal course of business this reporting period?
If yes, provide an explanation below. | | X |
2. Have any funds been disbursed from any account other than a debtor in possession account this reporting period? If yes, provide an explanation below. | | X |
3. Have all post petition tax returns been timely filed? If no, provide an explanation below. | X | |
4. Are workers compensation, general liability and other necessary insurance coverages in effect? If no, provide an explanation below. | X | |
5. Has any bank account been opened during the reporting period? If yes, provide documentation identifying the opened account(s). If an investment account has been opened provide the required documentation pursuant to the Delaware Local Rule 4001-3. (1) | | X |
MOR-5: Accounts Receivable Aging AND Debtor Questionnaire
