EXHIBIT 99.2
UNITED STATES BANKRUPTCY COURT
SOUTHERN DISTRICT OF NEW YORK
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In re: Chapter 11
SIGNAL APPAREL COMPANY, INC. Case No. 00-B-14462 (REG)
SOCCER HOLDINGS, INC Case No. 00-B-14463 (REG)
Jointly Administered
Debtors
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OPERATING STATEMENT FOR THE
PERIOD FROM MARCH 1, 2001 TO MARCH 31, 2001
DEBTOR'S ADDRESS:
34 ENGLEHARD DRIVE
AVENEL, NJ 07001
DISBURSEMENTS FOR 3/1-3/31/01:
$ 417,062
DEBTOR'S ATTORNEY:
ANGEL & FRANKEL, PC
460 Park Avenue
New York, NY 10022
OPERATING LOSS FOR 3/1 - 3/31/01:
$ 1,223,386
REPORT PREPARER:
Gerald R. Mohamed Jr.
The undersigned, having reviewed the attached report and being familiar
with the Debtor's financial affairs, verifies under the penalty of perjury, that
the information contained therein is complete, accurate and truthful to the best
of my knowledge.
/s/ Robert Powell
DATE: May 23, 2001 _________________________________
Robert Powell, VP & General Counsel
Signal Apparel Company, Inc. ("Signal") is engaged in the sales and marketing,
of apparel within the following product lines; screenprinted and embroidered
knit and woven activewear for men and boys, and screenprinted and embroided
ladies' and girls' activewear, bodywear and swimwear. Signal outsources all of
its manufacturing and embellishment processes to third parties domestic and
abroad. Soccer Holdings, Inc. ("Holdings") is its wholly owned subsidiary. On
September 22, 2000, Signal and Holdings, each filed petition for relief under
Chapter 11 of the federal bankruptcy laws. The following financial statements
(balance sheet, statement of operations and cash flows) are presented as of
March 31, 2001. These statements do not reflect any interest on any pre-petition
debt.
Signal Apparel Company, Inc.
(Debtor in Possession)
Balance Sheet
March 31, 2001
(000's)
ASSETS
Cash 51
Net Accounts Receivable 147
Notes Receivable 74
Net Inventories (c) 46
Prepaid Assets 149
------
Total Current Assets 468
Net Fixed Assets 391
Net Goodwill 23,906
Other Assets 770
------
Total Assets 25,535
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Signal Apparel Company, Inc.
(Debtor in Possession)
Balance Sheet
March 31, 2001
(000's)
LIABILITIES & SHAREHOLDERS EQUITY
Liabilities Not Subject to Compromise:
Accounts Payable (65)
GMAC CC Debt (Post-Petition) (a) 51
--------
Sub-Total (14)
Liabilities Subject to Compromise:
Current Liabilities:
Accounts Payable & Accrued Liabilities (15,736)
GMAC CC Debt (Pre-Petition) (a) (b) (44,262)
Other Liabilities (102,025)
--------
Sub-Total (162,038)
Total Current Liabilities (162,036)
Shareholders' Deficit:
Preferred Stock (54,287)
Common Stock (535)
Additional Paid in Capital (191,263)
Retained Deficit (b) 381,471
--------
135,386
Less: Treasury Shares 1,117
--------
Total Shareholders Deficit 136,503
--------
Total Liabilities & Shareholders Deficit (25,535)
========
(a) Amounts owing to GMAC CC do not reflect items not charged to the loan
balance at this time (e.g. open Letters of Credit). These amounts will be
shown when charged.
(b) The cumulative interest on pre-petition debt as of March 31, 2001 was
$2,679k.
(c) Gross inventories are net of a reserve of $1,890k.
Signal Apparel Company, Inc.
(Debtor in Possession)
Post-Petition Operating Statement
March 31, 2001
Total
----------
Gross Sales 1,012,185
Sales Returns & Allowances 237,767
----------
Net Sales 1,249,952
Cost of Sales (2,117,992)
----------
Gross Profit before Royalties (868,040)
Royalty Expense (33,970)
----------
Gross Margin (902,010)
S, G & A (164,673)
----------
EBITDA (1,066,683)
Depreciation & Amortization (167,436)
Interest (Expense)/Income-Post 10,733
Misc Income --
----------
Profit/(Loss) Before Dividend (1,223,386)
Preferred Dividend --
----------
Net Profit/(Loss) (1,223,386)
SIGNAL APPAREL COMPANY, INC.
(Debtor in Possession)
For the period 3/01/01 to 3/31/01
CONSOLIDATED STATEMENT OF FEDERAL, STATE AND
LOCAL TAXES COLLECTED, RECEIVED, DUE OR WITHHELD
Amount
-------------------
Gross wages and salaries paid or incurred 43,522
Payroll taxes withheld 12,295
Employer payroll tax contributions 4,084
Payments of payroll taxes withheld and employer tax contributions:
Payee Date Amount
- ---------------------------------- ------------------------- ------------------
Federal Reserve Bank Mar 7,14,21,28 13,766.11
Federal Unemployment Tax 52.48
State Taxes:
NJ Mar 7,14,21,28 925.17
NY Mar 7,14,21,28 477.86
Local Taxes:
NYC Mar 7,14,21,28 173.21
SUI/SDI:
NJ Mar 7,14,21,28 854.61
NY Mar 7,14,21,28 0.00
TN Mar 7,14,21,28 128.85
------------------
16,378.29
SIGNAL APPAREL COMPANY, INC.
(Debtor in Possession)
CONSOLIDATED STATEMENT OF CASH FLOWS
For the period 3/1/01 to 3/31/01
Operating Activities:
Net Loss (1,223,386)
Adjustments to reconcile net loss to
net cash used in operating activities:
Depreciation and amortization 167,436
Non-cash interest charges --
Changes in operating assets and liabilities:
Receivables --
Inventories 2,117,000
Prepaid expenses and other current
assets --
Other assets --
Accounts payable and accrued
liabilities 39,715
----------
Net cash provided by operating
activities 1,100,765
Investing activities:
Purchases of property, plant and equipment --
Proceeds from sale of property, plant and
equipment --
----------
Net Cash provided by investing activities 0
----------
Financing activities:
Net (decrease) increase in revolving advance
account and term loan borrowings (1,101,471)
Net (decrease) increase in other loan term borrowings --
Principal payments on other long term borrowings --
----------
Net cash provided by financing activities (1,101,471)
----------
Net (decrease) increase in cash and cash equivalents (706)
Cash and cash equivalents, at the beginning of the period 51,798
----------
Cash and cash equivalents, at the end of the period 51,092
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