EXHIBIT 2.1
Monthly Operating Report
CASE NAME: Alford Refrigerated Warehouses, Inc.
ACCRUAL BASIS
CASE NUMBER: 01-39776-BJH-11
JUDGE: Steven A. Felsenthal
UNITED STATES BANKRUPTCY COURT
NORTHERN DISTRICT OF TEXAS
DALLAS DIVISION
MONTHLY OPERATING REPORT
MONTH ENDING: December 31, 2001
I DECLARE UNDER PENALTY OF PERJURY THAT I HAVE EXAMINED THE FOLLOWING MONTHLY
OPERATING REPORT (ACCRUAL BASIS-1 THROUGH ACCRUAL BASIS-7) AND THE ACCOMPANYING
ATTACHMENTS AND THESE DOCUMENTS ARE TRUE, CORRECT AND COMPLETE. DECLARATION OF
THE PREPARER IS BASED ON ALL INFORMATION OF WHICH PREPARER HAS ANY KNOWLEDGE.
RESPONSIBLE PARTY:
/s/ Chief Financial Officer
- --------------------------------------- ---------------------------------
ORIGINAL SIGNATURE OF RESPONSIBLE PARTY TITLE
James C. Williams January 18, 2002
- --------------------------------------- ---------------------------------
PRINTED NAME OF RESPONSIBLE PARTY DATE
PREPARER:
/s/ Chief Financial Officer
- --------------------------------------- ---------------------------------
ORIGINAL SIGNATURE OF PREPARER TITLE
James C. Williams January 18, 2002
- --------------------------------------- ---------------------------------
PRINTED NAME OF PREPARER DATE
Monthly Operating Report
CASE NAME: Alford Refrigerated Warehouses, Inc.
ACCRUAL BASIS-1
CASE NUMBER: 01-39776-BJH-11
COMPARATIVE BALANCE SHEET
SCHEDULE MONTH MONTH MONTH
AMOUNT
ASSETS 12/2001
1. UNRESTRICTED CASH 158,006
2. RESTRICTED CASH -
3. TOTAL CASH 158,006
4. ACCOUNTS RECEIVABLE (NET) 564,874
5. INVENTORY --
6. NOTES RECEIVABLE --
7. PREPAID EXPENSES 151,275
8. OTHER (ATTACH LIST) --
9. TOTAL CURRENT ASSETS 874,155
10. PROPERTY, PLANT & EQUIPMENT 4,500,302
11. LESS: ACCUMULATED
DEPRECIATION / DEPLETION 2,730,254
12. NET PROPERTY, PLANT &
EQUIPMENT 1,770,048
13. DUE FROM INSIDERS 74,630
14. OTHER ASSETS - NET OF
AMORTIZATION (ATTACH LIST) 129,067
15. OTHER (ATTACH LIST) 1,017,323
16. TOTAL ASSETS 3,865,223
POSTPETITION LIABILITIES
17. ACCOUNTS PAYABLE 221,688
18. TAXES PAYABLE 19,333
19. NOTES PAYABLE --
20. PROFESSIONAL FEES -
21. SECURED DEBT -
22. OTHER (ATTACH LIST) 750
23. TOTAL POSTPETITION
LIABILITIES 241,771
PREPETITION LIABILITIES
24. SECURED DEBT 2,810,706
25. PRIORITY DEBT 60,090
26. UNSECURED DEBT 3,054,070
27. OTHER (ATTACH LIST) 760,954
28. TOTAL PREPETITION LIABILITIES 6,685,820
29. TOTAL LIABILITIES 6,927,591
EQUITY
30. PREPETITION OWNER'S EQUITY (2,726,032)
31. POSTPETITION CUMULATIVE
PROFIT OR (LOSS) (336,336)
32. DIRECT CHARGES TO EQUITY
(ATTACH EXPLANATION) -
33. TOTAL EQUITY (3,062,368)
34. TOTAL LIABILITIES &
OWNER'S EQUITY 3,865,223
Case Name: Alford Refrigerated Warehouses, Inc. MOR-1
Case No. 01-39776-BJH-11
14. Capitalized Professional Fees net of Amortization $ 129,067
15. Investment in Subsidiaries $ 941,057
Deposits 76,266
-----------
$ 1,017,323
22. Deferred Revenue $ 750
27. Deferred Income Taxes $ 697,039
Deferred Revenue 63,915
----------
$ 760,954
Monthly Operating Report
CASE NAME: Alford Refrigerated Warehouses, Inc.
ACCRUAL BASIS-2
CASE NUMBER: 01-39776-BJH-11
INCOME STATEMENT
MONTH MONTH MONTH QUARTER
TOTAL
REVENUES 12/2001
1. GROSS REVENUES 519,022 519,022
2. LESS: RETURNS & DISCOUNTS - -
3. NET REVENUE 519,022 519,022
COST OF GOODS SOLD
4. MATERIAL - --
5. DIRECT LABOR - --
6. DIRECT OVERHEAD - -
7. TOTAL COST OF GOODS SOLD - -
8. GROSS PROFIT 519,022 519,022
OPERATING EXPENSES
9. OFFICER / INSIDER COMPENSATION 38,384 38,384
10. SELLING & MARKETING - -
11. GENERAL & ADMINISTRATIVE 561,436 561,436
12. RENT & LEASE 206,222 206,222
13. OTHER (ATTACHED) - -
14. TOTAL OPERATING EXPENSES 806,042 806,042
15. INCOME BEFORE NON-OPERATING
INCOME & EXPENSE (287,020) (287,020)
OTHER INCOME & EXPENSES
16. NON-OPERATING INCOME
(ATT. LIST) - -
17. NON-OPERATING EXPENSE
(ATT. LIST) - -
18. INTEREST EXPENSE 1,609 1,609
19. DEPRECIATION / DEPLETION 45,747 45,747
20. AMORTIZATION 1,960 1,960
21. OTHER (ATTACH LIST) - -
22. NET OTHER INCOME & EXPENSES (336,336) (336,336)
REORGANIZATION EXPENSES
23. PROFESSIONAL FEES - -
24. U.S. TRUSTEE FEES - -
25. OTHER (ATTACH LIST) - -
26. TOTAL REORGANIZATION
EXPENSES - -
27. INCOME TAX - -
28. NET PROFIT (LOSS) (336,336) (336,336)
Monthly Operating Report
CASE NAME: Alford Refrigerated Warehouses, Inc.
ACCRUAL BASIS-3
CASE NUMBER: 01-39776-BJH-11
CASH RECEIPTS AND DISBURSEMENTS
MONTH MONTH MONTH QUARTER
TOTAL
12/2001
1. CASH - BEGINNING OF MONTH (46,755) (46,755)
RECEIPTS FROM OPERATIONS
2. CASH SALES 5,124 5,124
COLLECTION OF ACCOUNTS RECEIVABLES
3. PREPETITION 477,443 477,443
4. POSTPETITION 145,775 145,775
5. TOTAL OPERATING RECEIPTS 623,218 623,218
NON-OPERATING RECEIPTS
6. LOANS & ADVANCES (ATTACH LIST) - -
7. SALE OF ASSETS - -
8. OTHER (ATTACH LIST) - -
9. TOTAL NON-OPERATING RECEIPTS - -
10. TOTAL RECEIPTS 628,342 628,342
11. TOTAL CASH AVAILABLE 581,587 581,587
OPERATING DISBURSEMENTS
12. NET PAYROLL 177,725 177,725
13. PAYROLL TAXES PAID 73,903 73,903
14. SALES, USE & OTHER TAXES PAID - -
15. SECURED / RENTAL / LEASES 44,499 44,499
16. UTILITIES 10,134 10,134
17. INSURANCE 34,065 34,065
18. INVENTORY PURCHASES - -
19. VEHICLE EXPENSES - -
20. TRAVEL 140 140
21. ENTERTAINMENT - -
22. REPAIRS & MAINTENANCE 26,991 26,991
23. SUPPLIES 8,389 8,389
24. ADVERTISING - -
25. OTHER (ATTACH LIST) 47,735 47,735
26. TOTAL OPERATING DISBURSEMENTS 423,581 423,581
REORGANIZATION EXPENSES
27. PROFESSIONAL FEES - -
28. U.S. TRUSTEE FEES - -
29. OTHER (ATTACH LIST) - -
30. TOTAL REORGANIZATION EXPENSES - -
31. TOTAL DISBURSEMENTS 423,581 423,581
32. NET CASH FLOW 158,006 158,006
33. CASH - END OF MONTH 158,006 158,006
Case Name: Alford Refrigerated Warehouses, Inc. MOR-3
Case No. 01-39776-BJH-11
25. Bank Charges $ 590
Employee withholdings for Child Support, IRS Levy,
401(K), Credit Union, Medical Premiums 47,145
------
$ 47,735
Monthly Operating Report
CASE NAME: Alford Refrigerated Warehouses, Inc.
ACCRUAL BASIS-4
CASE NUMBER: 01-39776-BJH-11
ACCOUNTS RECEIVABLE ACCOUNTS
MONTH MONTH MONTH
12/2001
1. 0-30 286,739
2. 31-60 106,987
3. 61-90 21,868
4. 91+ 49,490
5. TOTAL ACCOUNTS RECEIVABLE 465,084
6. AMOUNT CONSIDERED
UNCOLLECTIBLE --
7. ACCOUNTS RECEIVABLE (NET) 465,084
AGING OF POSTPETITION TAXES AND PAYABLES MONTH: 12/2001
-----------
TAXES PAYABLE TOTAL
1. FEDERAL - -- - - -
2. STATE - - - - -
3. LOCAL 19,333 - - - 19,333
4. OTHER
(ATTACH LIST) - -- - - -
5. TOTAL TAXES
PAYABLE 19,333 19,333
6. ACCOUNTS PAYABLE 14,970 100 - 15,070
STATUS OF POSTPETITION TAXES MONTH: 12/2001
-------
BEGINNING AMOUNT AMOUNT ENDING
TAX WITHHOLDING PAID TAX
FEDERAL LIABILITY ON ACCOUNT LIABILITY
1. WITHHOLDING** - - - --
2. FICA-EMPLOYEE** - - - -
3. FICA-EMPLOYER** - - - -
4. UNEMPLOYMENT - - - -
5. INCOME - - -- --
6. OTHER (ATTACH LIST) - - - -
7. TOTAL FEDERAL TAXES - - - -
STATE AND LOCAL
8. WITHHOLDING - - - -
9. SALES - - - -
10. EXCISE - - - -
11. UNEMPLOYMENT - - - -
12. REAL PROPERTY -- 19,333 -- 19,333
13. PERSONAL PROPERTY - - - -
14. OTHER (ATTACH LIST) - - - -
15. TOTAL STATE & LOCAL - 19,333 - 19,333
16. TOTAL TAXES - 19,333 - 19,333
<FN>
* The beginning tax liability should represent the liability from the prior
month or, if this is the first operating report, the amount should be zero.
** Attach photocopies of IRS Form 6123 or your FTD coupon and payment receipt
to verify payment or deposit.
</FN>
Monthly Operating Report
CASE NAME: Alford Refrigerated Warehouses, Inc.
ACCRUAL BASIS-5
CASE NUMBER: 01-39776-BJH-11
The debtor in possession must complete the reconciliation below for each bank
account, including all general, payroll and tax accounts, as well as all savings
and investment accounts, money market accounts, certificates of deposit,
government obligations, etc. Accounts with restricted funds should be identified
by placing an asterisk next to the account number. Attach additional sheets if
necessary.
MONTH: 12/2001
BANK RECONCILIATIONS Account #1 Account #2 Account #3
A. BANK Comerica Comerica Compass
B. ACCOUNT NUMBER 1880803067 1880803091 39798
C. PURPOSE (TYPE) DIP Cash Operating
Collateral
1. BALANCE PER BANK STATEMENT 56,395 14,459 112,387
2. ADD: TOTAL DEPOSITS NOT
CREDITED 5,308 - -
3. SUBTRACT OUTSTANDING CHECKS 12,207 - 18,265
4. OTHER RECONCILING ITEMS - - (3,034)
5. MONTH END BALANCE PER BOOKS 49,496 14,459 91,088
6. NUMBER OF LAST CHECK WRITTEN
INVESTMENT ACCOUNTS
DATE OF TYPE OF PURCHASE CURRENT
BANK ACCOUNT NAME & NUMBER PURCHASE INSTRUMENT PRICE VALUE
7. --
8. --
9. --
10. --
TOTAL INVESTMENTS --
CASH
CURRENCY ON HAND
TOTAL CASH END OF MONTH
Monthly Operating Report
CASE NAME: Alford Refrigerated Warehouses, Inc.
ACCRUAL BASIS-5
CASE NUMBER: 01-39776-BJH-11
The debtor in possession must complete the reconciliation below for each bank
account, including all general, payroll and tax accounts, as well as all savings
and investment accounts, money market accounts, certificates of deposit,
government obligations, etc. Accounts with restricted funds should be identified
by placing an asterisk next to the account number. Attach additional sheets if
necessary.
MONTH: 12/2001
BANK RECONCILIATIONS Account #1 Account #2 Account #3 TOTAL
A. BANK Compass Compass
B. ACCOUNT NUMBER 050-1289-3 39796740
C. PURPOSE
1. BALANCE PER BANK STATEMENT 775 - 184,016
2. ADD: TOTAL DEPOSITS NOT CREDITED
- - 5,308
3. SUBTRACT OUTSTANDING CHECKS - 180 30,652
4. OTHER RECONCILING ITEMS - - (3,034)
5. MONTH END BALANCE PER BOOKS 775 (180) 155,638
6. NUMBER OF LAST CHECK WRITTEN
INVESTMENT ACCOUNTS
BANK ACCOUNT NAMES & NUMBER DATE OF TYPE OF PURCHASE CURRENT
PURCHASE INSTRUMENT PRICE VALUE
7. --
8. --
9. --
10. --
TOTAL INVESTMENTS -- --
CASH
CURRENCY ON HAND 2,368
TOTAL CASH END OF MONTH 158,006
Monthly Operating Report
CASE NAME: Alford Refrigerated Warehouses, Inc.
ACCRUAL BASIS-6
CASE NUMBER: 01-39776-BJH-11
MONTH: 12/2001
PAYMENTS TO INSIDERS AND PROFESSIONALS
- -----------------------------------------------------
OF THE TOTAL DISBURSEMENTS SHOWN FOR THE MONTH, LIST THE AMOUNT PAID
TO INSIDERS (AS DEFINED IN SECTION 101(31) (A)-(F) OF THE U.S. BANKRUPTCY CODE)
AND TO PROFESSIONALS. ALSO, FOR PAYMENTS TO INSIDERS, IDENTIFY THE TYPE OF
COMPENSATION PAID (e.g. SALARY, BONUS, COMMISSIONS, INSURANCE, HOUSING ALLOWANCE,
TRAVEL, CAR ALLOWANCE, ETC.). ATTACH ADDITIONAL SHEETS IF NECESSARY.
INSIDERS
TYPE OF AMOUNT
PAYMENT PAID
1. J. C. Williams Salary 12,908 12,908
2. K. R. Mcginnis Salary 12,915 12,915
3. M. A. Oros Salary 1,923 1,923
4.
5.
TOTAL PAYMENTS TO 27,746
INSIDERS
PROFESSIONALS
DATE OF COURT AMOUNT AMOUNT TOTAL TOTAL
NAME AUTHORIZED APPROVED PAID PAID TO INCURRED
PAYMENT DATE & UNPAID
1.
2.
3.
4.
5.
TOTAL PAYMENTS
TO PROFESSIONALS
*INCLUDE ALL FEES INCURRED, BOTH APPROVED AND UNAPPROVED
POSTPETITION STATUS OF SECURED NOTES, LEASES PAYABLE AND ADEQUATE
PROTECTION PAYMENTS
SCHEDULED AMOUNTS TOTAL
NAMED CREDITOR MONTHLY PAID DURING UNPAID
PAYMENTS DUE MONTH POSTPETITION
1. AFCO 20,109 20,109 22,113
2. Cananwill, Inc. 10,325 10,325 70,189
3. Republic Group 2,351 2,351 23,687
4. Raymond Leasing - 4,499 140,509
5.
6. TOTAL 32,785 37,284 256,498
Monthly Operating Report
CASE NAME: Alford Refrigerated Warehouses, Inc.
ACCRUAL BASIS-7
CASE NUMBER: 01-39776-BJH-11
MONTH: 12/2001
QUESTIONNAIRE
YES NO
1. HAVE ANY ASSETS BEEN SOLD OR TRANSFERRED OUTSIDE THE
NORMAL COURSE OF BUSINESS THIS REPORTING PERIOD? X
2. HAVE ANY FUNDS BEEN DISBURSED FROM ANY ACCOUNT OTHER
THAN A DEBTOR IN POSSESSION ACCOUNT? X
3. ARE ANY POSTPETITION RECEIVABLES (ACCOUNTS, NOTES, OR
LOANS) DUE FROM RELATED PARTIES? X
4. HAVE ANY PAYMENTS BEEN MADE ON PREPETITION LIABILITIES
THIS REPORTING PERIOD? X
5. HAVE ANY POSTPETITION LOANS BEEN RECEIVED BY THE
DEBTOR FROM ANY PARTY? X
6. ARE ANY POSTPETITION PAYROLL TAXES PAST DUE? X
7. ARE ANY POSTPETITION STATE OR FEDERAL INCOME TAXES PAST
DUE? X
8. ARE ANY POSTPETITION REAL ESTATE TAXES PAST DUE? X
9. ARE ANY OTHER POSTPETITION TAXES PAST DUE? X
10. ARE ANY AMOUNTS OWED TO POSTPETITION CREDITORS
DELINQUENT? X
11. HAVE ANY PREPETITION TAXES BEEN PAID DURING THE
REPORTING PERIOD? X
12. ARE ANY WAGE PAYMENTS PAST DUE? X
IF THE ANSWER TO ANY OF THE ABOVE QUESTIONS IS "YES," PROVIDE A DETAILED
EXPLANATION OF EACH ITEM. ATTACH ADDITIONAL SHEETS IF NECESSARY.
See Attached
INSURANCE
YES NO
1. ARE WORKER'S COMPENSATION, GENERAL LIABILITY AND
OTHER NECESSARY INSURANCE COVERAGES IN EFFECT? X
2. ARE ALL PREMIUM PAYMENTS PAID CURRENT? X
3. PLEASE ITEMIZE POLICIES BELOW.
IF THE ANSWER TO ANY OF THE ABOVE QUESTIONS IS "NO," OR IF ANY POLICIES HAVE
BEEN CANCELLED OR NOT RENEWED DURING THIS REPORTING PERIOD, PROVIDE AN
EXPLANATION BELOW. ATTACH ADDITIONAL SHEETS IF NECESSARY.
All premiums to the carriers are paid, installments to the finance company for
CGL & worker's comp. insurance are not paid current.
TYPE OF POLICY CARRIER PERIOD COVERED PAYMENT AMOUNT
-------------
Property Chubb 03/22/01 - 03/22/02 $141,194/Yr
Excess Property Gulf 03/22/01 - 03/22/02 30,000/Yr
Boiler & Mach Travelers 03/22/01 - 03/22/02 11,292/Yr
CGL Republic 08/01/01 - 08/01/02 19,912/Yr
Commercial Umb. Republic 08/01/01 - 08/01/02 6,329/Yr
Worker's Comp United Nat'l 09/12/01 - 09/12/02 113,924/Yr
Case Name: Alford Refrigerated Warehouses, Inc. MOR-7
Case No. 01-39776-BJH-11
2. DIP account was opened on 12/07/01, printed checks received on 12/20/01,
commenced using account on 12/27/01.
3. Postpetition receivable due wholly owned subsidiary, Hilltop Acquisition
Holding Corporation, for wages and insurance paid on their behalf in the
amount of $6,109.88. Reimbursement will be made in January 2002.
4. Payments have been made for insurance financing installments and three ACH
debits transacted the debtor's operating account. The creditor had been
requested to stop the ACH debits. Payments are detailed on MOR-6.