EXHIBIT 1.1
CASE NAME:
ACCRUAL BASIS
CASE NUMBER: 2/13/95
JUDGE:
UNITED STATES BANKRUPTCY COURT
NORTHERN DISTRICT OF TEXAS
MONTHLY OPERATING REPORT
MONTH ENDING: January 31, 2001
IN ACCORDANCE WITH TITLE 28, SECTION 1746, OF THE UNITED STAES CODE, 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, TO THE BEST OF MY KNOWLEDGE, THESE DOCUMENTS ARE TRUE, CORRECT
AND COMPLETE. DECLARATION OF THE PREPARER (OTHER THAN RESPONSIBLE PARTY) 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 February 20, 2002
- --------------------------------------- ---------------------------------
PRINTED NAME OF RESPONSIBLE PARTY DATE
PREPARER:
/s/ Chief Financial Officer
- --------------------------------------- ---------------------------------
ORIGINAL SIGNATURE OF PREPARER TITLE
James C. Williams February 20, 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 Jan. 2002
1. UNRESTRICTED CASH 246,158
2. RESTRICTED CASH -
3. TOTAL CASH 246,158
4. ACCOUNTS RECEIVABLE (NET) 485,225
5. INVENTORY --
6. NOTES RECEIVABLE --
7. PREPAID EXPENSES 133,567
8. OTHER (ATTACH LIST) --
9. TOTAL CURRENT ASSETS 864,950
10. PROPERTY, PLANT & EQUIPMENT 4,500,302
11. LESS: ACCUMULATED
DEPRECIATION / DEPLETION 2,764,225
12. NET PROPERTY, PLANT &
EQUIPMENT 1,736,077
13. DUE FROM INSIDERS (70,968)
14. OTHER ASSETS - NET OF
AMORTIZATION (ATTACH LIST) 126,842
15. OTHER (ATTACH LIST) 1,017,323
16. TOTAL ASSETS 3,674,224
POST PETITION LIABILITIES
17. ACCOUNTS PAYABLE 326,696
18. TAXES PAYABLE 31,333
19. NOTES PAYABLE --
20. PROFESSIONAL FEES -
21. SECURED DEBT -
22. OTHER (ATTACH LIST) 650
23. TOTAL POSTPETITION
LIABILITIES 358,679
PREPETITION LIABILITIES
24. SECURED DEBT 2,786,354
25. PRIORITY DEBT 60,090
26. UNSECURED DEBT 3,054,070
27. OTHER (ATTACH LIST) 760,954
28. TOTAL PREPETITION LIABILITIES 6,661,468
29. TOTAL LIABILITIES 7,020,147
EQUITY
30. PREPETITION OWNER'S EQUITY (2,726,032)
31. POSTPETITION CUMULATIVE
PROFIT OR (LOSS) (619,891)
32. DIRECT CHARGES TO EQUITY
(ATTACH EXPLANATION) -
33. TOTAL EQUITY (3,345,923)
34. TOTAL LIABILITIES &
OWNER'S EQUITY 3,674,224
Case Name: Alford Refrigerated Warehouses, Inc. MOR-1
Case No: 01-39776-BJH-11
14. Capitalized Professional Fees net of Amortization $ 126,842
15. Investment in Subsidiaries $ 941,057
Deposits 76,266
-------------
$ 1,017,323
22. Deferred Revenue $ 650
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 January, 2002
1. GROSS REVENUES 316,212 316,212
2. LESS: RETURNS & DISCOUNTS - -
3. NET REVENUE 316,212 316,212
COST OF GOODS SOLD
4. MATERIAL - --
5. DIRECT LABOR - --
6. DIRECT OVERHEAD - -
7. TOTAL COST OF GOODS SOLD - -
8. GROSS PROFIT 316,212 316,212
OPERATING EXPENSES
9. OFFICER / INSIDER COMPENSATION 29,092 29,092
10. SELLING & MARKETING - -
11. GENERAL & ADMINISTRATIVE 379,815 379,815
12. RENT & LEASE 154,667 154,667
13. OTHER (ATTACHED) - -
14. TOTAL OPERATING EXPENSES 563,574 563,574
15. INCOME BEFORE NON-OPERATING
INCOME & EXPENSE (247,362) (247,362)
OTHER INCOME & EXPENSES
16. NON-OPERATING INCOME
(ATT. LIST) - -
17. NON-OPERATING EXPENSE
(ATT. LIST) - -
18. INTEREST EXPENSE (254) (254)
19. DEPRECIATION / DEPLETION 33,971 33,971
20. AMORTIZATION 2,225 2,225
21. OTHER (ATTACH LIST) - -
22. NET OTHER INCOME & EXPENSES (283,304) (283,304)
REORGANIZATION EXPENSES
23. PROFESSIONAL FEES - -
24. U.S. TRUSTEE FEES 250 250
25. OTHER (ATTACH LIST) - -
26. TOTAL REORGANIZATION
EXPENSES 250 250
27. INCOME TAX - -
28. NET PROFIT (LOSS) (283,554) (283,554)
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
January, 2002
1. CASH - BEGINNING OF MONTH 158,006 158,006
RECEIPTS FROM OPERATIONS
2. CASH SALES 1,937 1,937
COLLECTION OF ACCOUNTS RECEIVABLES
3. PREPETITION 32,273 32,273
4. POSTPETITION 358,974 358,974
5. TOTAL OPERATING RECEIPTS 393,184 393,184
NON-OPERATING RECEIPTS
6. LOANS & ADVANCES (ATTACH LIST) - -
7. SALE OF ASSETS - -
8. OTHER (ATTACH LIST) - -
9. TOTAL NON-OPERATING RECEIPTS - -
10. TOTAL RECEIPTS 393,184 393,184
11. TOTAL CASH AVAILABLE 551,190 551,190
OPERATING DISBURSEMENTS
12. NET PAYROLL 138,609 138,609
13. PAYROLL TAXES PAID 54,946 54,946
14. SALES, USE & OTHER TAXES PAID - -
15. SECURED / RENTAL / LEASES - -
16. UTILITIES 4,226 4,226
17. INSURANCE 32,084 32,084
18. INVENTORY PURCHASES - -
19. VEHICLE EXPENSES - -
20. TRAVEL 190 190
21. ENTERTAINMENT - -
22. REPAIRS & MAINTENANCE 32,040 32,040
23. SUPPLIES 5,459 5,459
24. ADVERTISING - -
25. OTHER (ATTACH LIST) 37,228 37,228
26. TOTAL OPERATING DISBURSEMENTS 304,782 304,782
REORGANIZATION EXPENSES
27. PROFESSIONAL FEES - -
28. U.S. TRUSTEE FEES 250 250
29. OTHER (ATTACH LIST) - -
30. TOTAL REORGANIZATION EXPENSES 250 250
31. TOTAL DISBURSEMENTS 305,032 305,032
32. NET CASH FLOW 246,158 246,158
33. CASH - END OF MONTH 246,158 246,158
Case Name: Alford Refrigerated Warehouses, Inc. MOR-3
Case No: 01-39776-BJH-11
25. Bank Charges $ 429
Licenses & Fees 225
Employee withholdings for Child Support, Irs Levy,
401(K), Credit Union, Medical Premiums 36,574
--------
$ 37,228
Monthly Operating Report
CASE NAME: Alford Refrigerated Warehouses, Inc.
ACCRUAL BASIS-4
CASE NUMBER: 01-39776-BJH-11
ACCOUNTS RECEIVABLE ACCOUNTS
MONTH MONTH MONTH
January, 2002
1. 0-30 264,569
2. 31-60 60,438
3. 61-90 4,135
4. 91+ 64,782
5. TOTAL ACCOUNTS RECEIVABLE 393,924
6. AMOUNT CONSIDERED
UNCOLLECTIBLE --
7. ACCOUNTS RECEIVABLE (NET) 393,924
AGING OF POSTPETITION TAXES AND PAYABLES MONTH: January, 2002
-----------
TAXES PAYABLE 0-30 DAYS 31-60 DAYS 61-90 DAYS 91+ DAYS TOTAL
1. FEDERAL - - - - -
2. STATE - - - - -
3. LOCAL 12,000 19,333 - - 31,333
4. OTHER
(ATTACH LIST) - - - - -
5. TOTAL TAXES
PAYABLE 12,000 19,333 - - 31,333
6. ACCOUNTS PAYABLE 153,034 - - - 153,034
STATUS OF POSTPETITION TAXES MONTH: January, 2002
-------------
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 12,000 - 31,333
13. PERSONAL PROPERTY - - - -
14. OTHER (ATTACH LIST) - - - -
15. TOTAL STATE & LOCAL 19,333 12,000 - 31,333
16. TOTAL TAXES 19,333 12,000 - 31,333
<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: January, 2002
BANK RECONCILIATIONS Account #1 Account #2 Account #3
A. BANK Comerica Comerica Compass
B. ACCOUNT NUMBER 1880803067 1880803091 39798085 Total
C. PURPOSE (TYPE) DIP Cash Operating
Collateral
1. BALANCE PER BANK STATEMENT 219,957 49,073 2,212
2. ADD: TOTAL DEPOSITS NOT
CREDITED - - -
3. SUBTRACT OUTSTANDING CHECKS 24,763 - 250
4. OTHER RECONCILING ITEMS - - (3,034)
5. MONTH END BALANCE PER BOOKS 195,194 49,073 (1,072)
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: January, 2002
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 - 272,017
2. ADD: TOTAL DEPOSITS NOT CREDITED - - -
3. SUBTRACT OUTSTANDING CHECKS - 180 25,193
4. OTHER RECONCILING ITEMS - - (3,034)
5. MONTH END BALANCE PER BOOKS 775 (180) 243,790
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 246,158
Monthly Operating Report
CASE NAME: Alford Refrigerated Warehouses, Inc.
ACCRUAL BASIS-6
CASE NUMBER: 01-39776-BJH-11
MONTH: January, 2002
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 TOTAL PAID
PAYMENT PAID TO DATE
1. J. C. Williams Salary 11,904 24,812
2. K. R. Mcginnis Salary 7,189 20,104
3. J. Y. Robichaud Salary 14,000 14,000
4.
5.
TOTAL PAYMENTS TO 58,916
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 10,901 10,901 0
2. Cananwill, Inc. 10,325 10,325 59,864
3. Republic Group 2,351 21,336
4.
5.
6. TOTAL 25,577 81,200
Monthly Operating Report
CASE NAME: Alford Refrigerated Warehouses, Inc.
ACCRUAL BASIS-7
CASE NUMBER: 01-39776-BJH-11
MONTH: January, 2002
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. The Debtor uses a payroll service, ADP, which drafts the withholding taxes
automatically from the Debtor's bank account. Debtor is waiting for ADP to
change the drafting instructions to the DIP account.
3. Postpetition receivable due from wholly owned subsidiary, Hilltop
Acquisition Holding Corporation, for wages and insurance paid on their
behalf in the amount of $6,012.87. Reimbursement will be made in February
2002.
4. Payments have been made for insurance financing installments. Payments are
detailed on MOR-6