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OFFICE OF THE UNITED STATES TRUSTEE
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IN RE: ) DEBTOR IN POSSESSION OPERATING REPORT
) ------------------------------------------------------
)
MATTHEWS STUDIO EQUIPMENT GROUP & SUBSIDIARIES ) REPORT NUMBER 10 Page 1 of 3
) FOR THE PERIOD FROM: January 1, 2001
) TO: January 31, 2001
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CHAPTER 11 CASE NO. SV00-13471KL )
- ---------------------------------------------- SEE ATTACHED
1. Profit and Loss Statement
A. Related to Business Operations:
Gross Sales
_________________________
Less Sales Returns and Discounts
_________________________
Net Sales -
_________________________
Less: Cost of Goods Sold
Beginning Inventory at Cost -
_________________________
Add: Purchases
_________________________
Less: Ending Inventory at Cost -
_________________________
Cost of Goods Sold -
_________________________
-
Gross Profit _________________________ -
_________________________
Other Operating Revenue (Specify) -
_________________________
Less: Operating Expenses
Officer Compensation
_________________________
Salaries & Wages - Other Employees
_________________________
Total Salaries & Wages -
_________________________
Employee Benefits -
_________________________
Payroll Taxes
_________________________
Real Estate Taxes (Personal Property Tax)
_________________________
Federal and State Income Taxes
_________________________
Total Taxes -
_________________________
Rent and Lease Exp. (Real and Personal Property) -
_________________________
Interest Expense (Mortgage, Loan, etc.) -
_________________________
Insurance
_________________________
Automobile Expense
_________________________
Utilities (Gas, Electric, Water,
Telephone, etc.)
_________________________
Depreciation and Amortization
_________________________
Repairs and Maintenance
_________________________
Advertising -
_________________________
Supplies, Office Expenses,
Photocopies, etc.
_________________________
Bad Debts -
_________________________
Miscellaneous Operating Expenses -
(Specify)
_____________________________________________________
Total Operating Expenses -
_________________________
Net Gain/(Loss) from Business Operations -
_________________________
B. Not Related to Business Operations
Income:
Interest Income
Other Non-Operating Revenues (Specify)
_________________________
Gross Proceeds on Sale of Assets
_________________________
Less: Original Cost of Assets plus
Expenses of Sale
_________________________
Net Gain/(Loss) on Sale of
Assets
_________________________
Total Non-Operating Income
_________________________
Expenses Not Related to Business Operations:
Legal and Professional Fees
_________________________
Other Non-Operating Expenses (Specify)
_________________________
Total Non-Operating Expenses -
_________________________
NET INCOME /(LOSS) FOR PERIOD -
=========================
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Revised April 1989 OPERATING REPORT UST-4
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Page 1A
MATTHEWS STUDIO EQUIPMENT GROUP & SUBSIDIARIES
Statement of Operations for the Period Jan. 31, 01
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($000's)
REVENUES
Sales 82
Rental revenues 1,250
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Total revenues 1,332
Cost of goods sold 22
Cost of rental operation 639
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Total cost of sales and rental 661
Gross profits 671
Selling expense 113
General & administration 612
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Total operating expenses 725
Operating profit (54)
Depreciation & amortization 482
Corporate Interest allocation -
DIP Interest -
Other income & expenses 2
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Earnings before reorganization items & income tax provision (538)
Reorganization items:
Loss from sales of assets/Closing cost of facility 8,089
Professional fees 1,499
Provision for rejected executory contracts -
Interest earned on accumulated cash resulting from chapter 11 Proceeding (8)
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Total reorganization items 9,580
Income(loss) before income tax provision (10,118)
Income tax (benefits) -
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Net income (10,118)
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DEBTOR IN POSSESSION OPERATING REPORT No. 10
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Page 2 of 3
2. Aging of Accounts Payable and Receivable (exclude pre-petition debt from
accounts payable):
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Accounts Payable Accounts Receivable
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Current Under 30 days $19,555 $548,466
Overdue 31 - 60 days $6,344 $18,797
Overdue 61 - 90 days $9,804 $10,124
Overdue 91 - 120 days $186,033 $0
Overdue 121 + days $0 $918,274
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Total $221,736 $1,495,661
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3. Statement of Status of Payments to Secured Creditors and Lessors: SEE ATTACHED
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Frequency of Post-Petition
Payments per Amount of Payments Not Made
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Creditor/Lessor Lease/Contract Each Payment Next Payment Due Number Amount
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4. Tax Liability:
Gross Payroll Expense For Period $674,258 *SEE NOTE
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Gross Sales for Period Subject to Sales Tax $432,415
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Post Petition Taxes
Date Paid Amount Paid * Still Owing
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Federal Payroll and Withholding Taxes 1/24/01 $207,000 $ 7,694
State Payroll and Withholding Taxes 1/24/01 $47,125 $ 1,980
State Sales and Use Tax 1/22/01 $30,472 $37,397
Real Property Taxes $ 0 $ 0
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* Attach photocopies of depository receipts from taxing
authority or financial institution to verify that such
deposits or payments have been made.
5. Insurance Coverage
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Carrier/ Amount of Policy Premium Paid
Agent Coverage Exp. Date Thru Date
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Worker's Compensation GULF INS CO 4/1/2001 4/1/2001
Liability GULF INS CO SEE 4/1/2001 4/1/2001
Fire and Extended Coverage GULF INS CO ATTACHED 4/1/2001 4/1/2001
Property GULF INS CO (Not Filed with Form 8K) 4/1/2001 4/1/2001
Theft CNA 4/1/2001 4/1/2001
Life (Beneficiary:________________) TRANSAMERICA
Vehicle GULF INS CO 4/1/2001 4/1/2001
Other INSURANCE WEST 4/1/2001 4/1/2001
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*NOTE: PAYROLL IS PAID BY MATTHEWS STUDIO EQUIPMENT GROUP,
AND IS ALLOCATED TO THE SUBSIDIARY INCURRING THE
PAYROLL EXPENSE.
ALL PAYROLL TAXES ARE PAID BY ADP
Page 2A
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MATTHEWS STUDIO EQUIPMENT GROUP & SUBSIDIARIES
SECURED CREDITORS AND LESSORS
JAN. 31, 2001 CREDIT FACILITY
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MONTHLY UNPAID
BINDER TAB DESCRIPTION COMPANY PAYMENT POST PET
- ------ --- -------------------------------------- ---------- ---------------------
CRF98 39 IBM Credit Corp - AS400/JBA Software Group 7,866 7,866
V 85 Xerox - Copier #C0H-010403 Group - Acct 558 0
CRF98 40 Pitney Bowes - Postage meter Four Star 167 0
CRF98 12 Minolta Copier Corp - Copier/Fax Four Star 264 0
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DEBTOR IN POSSESSION OPERATING REPORT NO. 10
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Page 3 of 3
6. Questions:
A. Has the Debtor provided to any officers, directors, shareholders, or
other principals compensation without the approval of the Office of the
United States Trustee?
_____ : Yes Explain: _______________________________________
X :No
B. Has the Debtor, subsequent to the filing of the petition made any
payments on its pre-petition unsecured debt, except as have been
authorized by the Court?
_____ : Yes Explain: _______________________________________
X : No
7. Statement of Unpaid Professional Fees (Post-Petition Only):
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Type Post-Petition
Name of Professional Professional Unpaid Total**
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Crossroads, LLC Turnaround management 12,190 Estimated
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George Nicolais Financial advisor 2,198 Estimated
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Klee Tuchin Bogdanoff & Stern Counsel 47,195 Estimated
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Latham Watkins Counsel -
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Stutman Treister Counsel 23,256 Estimated
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Imperial Capital, LLC Financial advisor -
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Holland & Knight Counsel 33,506 Estimated
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Ernst & Young Independent Auditors -
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**NOTE: Professional fees are paid by Matthews Studio Equipment
Group for all the subsidiaries.
8. Narrative Report of Significant Events And Events Out Of The Ordinary Course
Of Business:
N/A
9. Quarterly Fees: (This Fee must be paid to the United States Trustee every
calendar quarter)
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Quarterly
Quarterly Disbursements Quarterly Quarterly
Period Ending for Quarter Fee Date Paid Amount Paid Check No. Fee Still Owing
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6/30/2000 $7,108,942.00 $24,500.00 7/31/00 $24,500.00 2408
9/30/2000 $7,208,343.00 $21,500.00 10/24/00 $21,500.00 1395
12/31/2000 $7,053,994.00 $21,000.00 1/26/01 $21,000.00 1543
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I, Ellen Gordon, Estate Representative, declare under penalty of perjury that
the information contained in the above Debtor in Possession Operating Report is
true and complete to the best of my knowledge.
Dated: March 1, 2001 Signed: /s/ Ellen Gordon
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OFFICE OF THE UNITED STATES TRUSTEE
PAGE 1
CENTRAL DISTRICT OF CALIFORNIA
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IN RE: ) DEBTOR IN POSSESSION INTERIM STATEMENT
)
Matthews Studio Equipment Group ) STATEMENT NO. 10
) FOR THE PERIOD FROM: 01/01/01
DEBTOR) TO: 01/31/01
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CHAPTER 11 CASE NO. SV 00 13471 KL ) General Concentration Payroll Tax Pre-Chapter
- ------------------------------------) Account Account Account Account Payroll
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CASH ACTIVITY ANALYSIS
A. Total Receipts Per All Prior Interim Statements $12,424,191.58 $18,019,645.05 $294,481.71 $ 0.00 $5,082,565.61
B. Less: Total Disbursements Per All Prior
Interim Statements $12,424,191.58 $16,765,454.99 $294,481.71 $0.00 $5,080,765.40
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C. Beginning Balance $ 0.00 $ 1,254,190.06 $ 0.00 $0.00 $ 1,800.21
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D. Receipts During Current Period
Per Attached Schedule (Not filed with
Form 8K) $14,777,198.77 $ 1,898,582.23 $ 0.00 $0.00 707,521.09
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E. Balance Available $14,777,198.77 $ 3,152,772.29 $ 0.00 $0.00 $ 709,321.30
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F. Less: Disbursements During Period
Per Attached Schedule (Not filed with
Form 8K) $14,777,198.77 $ 2,382,765.10 $ 0.00 $0.00 718,212.19
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G. Ending Balance $ 0.00 $ 770,007.19 $ 0.00 $0.00 ($8,890.89)
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Investment Professional CD 5-Month CD
Account Account Account Account
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CASH ACTIVITY ANALYSIS
A. Total Receipts Per All Prior Interim Statements $3,016,095.61 $2,159,756.87 $330,765.54 $ 1,250,000.01
B. Less: Total Disbursements Per All Prior
Interim Statements $2,205,469.95 $2,201,176.26 $330,765.54 $ 0.00
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C. Beginning Balance $ 810,625.66 ($41,419.39) $ 0.00 $ 1,250,000.01
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D. Receipts During Current Period
Per Attached Schedule (Not filed with
Form 8K) 395,638.10 316,897.97 - 12,816,090.21
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E. Balance Available $1,206,263.76 $ 275,478.58 $ 0.00 $14,066,090.22
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F. Less: Disbursements During Period
Per Attached Schedule (Not filed with
Form 8K) 316,897.97 275,478.58 - -
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G. Ending Balance $ 889,365.79 $ 0.00 $ 0.00 $14,066,090.22
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H. ACCOUNT INFORMATION
(1). General Account (5). Pre-Chapter Payroll Account
(a) City National Bank 4605 Lankershim Blvd. No. (a) Western Security Bank 4100 W. Alameda Ave.,
Hollywood, Ca. Burbank, Ca.
(b) 411952738 (b) 001064088
(2). Concentration Account (6). Investment Account
(a) City National Bank 4605 Lankershim Blvd. No. (a) City National Bank 4605 Lankershim Blvd. No.
Hollywood, Ca. Hollywood, Ca.
(b) 411952886 (b) BHS-072281
(3). Payroll Account (7). Professional Account
(a) City National Bank 4605 Lankershim Blvd. No. (a) City National Bank 4605 Lankershim Blvd. No.
Hollywood, Ca. Hollywood, Ca.
(b) 411952800 (b) 411953459
(4). Tax Account (8). Certificate of of Deposit
(a) City National Bank 4605 Lankershim Blvd. No. (a) City National Bank 4605 Lankershim Blvd. No.
Hollywood, Ca. Hollywood, Ca.
(b) 411952851 (b) 411955397
(9). 5-Month Liquid Certificate of of Deposit
(a) City National Bank 4605 Lankershim Blvd. No.
Hollywood, Ca.
(b) 411955893
I. Other Monies On Hand: None
I, Ellen Gordon, Estate Representative, declare under penalty of perjury that
the information contained in the above
Debtor in Possession Interim Statement is true and complete to the best of my
knowlege:
Dated: March 1, 2001 Signed: /s/ Ellen Gordon
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