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: March 31, 2002
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:
Chief Financial Officer
- --------------------------------------- ---------------------------------
ORIGINAL SIGNATURE OF RESPONSIBLE PARTY TITLE
James C. Williams April 19, 2002
- --------------------------------------- ---------------------------------
PRINTED NAME OF RESPONSIBLE PARTY DATE
PREPARER:
Chief Financial Officer
- --------------------------------------- ---------------------------------
ORIGINAL SIGNATURE OF PREPARER TITLE
James C. Williams April 19, 2002
- --------------------------------------- ---------------------------------
PRINTED NAME OF PREPARER DATE
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 Feb. 2002 Mar. 2002
1. UNRESTRICTED CASH 246,158 368,166 288,711
2. RESTRICTED CASH
3. TOTAL CASH 246,158 368,166 288,711
4. ACCOUNTS RECEIVABLE (NET) 485,225 541,675 536,391
5. INVENTORY
6. NOTES RECEIVABLE
7. PREPAID EXPENSES 133,567 103,957 346,486
8. OTHER (ATTACH LIST)
9. TOTAL CURRENT ASSETS 864,950 1,013,798 1,171,588
10. PROPERTY, PLANT & EQUIPMENT 4,500,302 7,570,735 7,570,735
11. LESS: ACCUMULATED
DEPRECIATION / DEPLETION 2,764,225 3,018,636 3,059,547
12. NET PROPERTY, PLANT &
EQUIPMENT 1,736,077 4,552,099 4,511,188
13. DUE FROM INSIDERS (70,968) (226,180) (387,003)
14. OTHER ASSETS - NET OF 126,842 259,557 256,768
15. OTHER (ATTACH LIST) 1,017,323 76,276 126,276
16. TOTAL ASSETS 3,674,224 5,675,550 5,678,817
POST PETITION LIABILITIES
17. ACCOUNTS PAYABLE 326,696 373,151 330,822
18. TAXES PAYABLE 31,333 105,707 128,007
19. NOTES PAYABLE 211,645
20. PROFESSIONAL FEES
21. SECURED DEBT
22. OTHER (ATTACH LIST) 650 650 650
23. TOTAL POSTPETITION
LIABILITIES 358,679 479,508 671,124
PREPETITION LIABILITIES
24. SECURED DEBT 2,786,354 4,745,838 4,728,233
25. PRIORITY DEBT 60,090 60,090 60,090
26. UNSECURED DEBT 3,054,070 3,087,862 3,087,862
27. OTHER (ATTACH LIST) 760,954 849,636 849,441
28. TOTAL PREPETITION LIABILITIES 6,661,468 8,743,426 8,725,626
29. TOTAL LIABILITIES 7,020,147 9,222,934 9,396,750
EQUITY
30. PREPETITION OWNER'S EQUITY (2,726,032) (2,726,032) (2,726,032)
31. POSTPETITION CUMULATIVE
PROFIT OR (LOSS) (619,891) (821,352) (991,901)
32. DIRECT CHARGES TO EQUITY
(ATTACH EXPLANATION)
33. TOTAL EQUITY (3,345,923) (3,547,384) (3,717,933)
34. TOTAL LIABILITIES &
OWNER'S EQUITY 3,674,224 5,675,550 5,678,817
Case Name: Alford Refrigerated Warehouses, Inc. MOR-1
Case No: 01-39776-BJH-11
January `02 February `02 March `02
14. Capitalized Professional Fees $ 126,842 $259,557 $256,768
net of Amortization
15. Investment in Subsidiaries $ 941,057 $ 10 $ 10
Deposits 76,266 76,266 126,266
----------- -------- --------
$ 1,017,323 $ 76,276 $126,276
22. Deferred Revenue $ 650 $ 650 $ 650
27. Deferred Income Taxes $ 697,039 $697,039 $697,039
Deferred Revenue 63,915 152,597 152,402
----------- -------- --------
$ 760,954 $849,636 $849,441
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 February, 2002 March, 2002
1. GROSS REVENUES 316,212 357,161 385,864 1,059,237
2. LESS: RETURNS & DISCOUNTS
3. NET REVENUE 316,212 357,161 385,864 1,059,237
COST OF GOODS SOLD
4. MATERIAL
5. DIRECT LABOR
6. DIRECT OVERHEAD
7. TOTAL COST OF GOODS SOLD
8. GROSS PROFIT 316,212 357,161 385,864 1,059,237
OPERATING EXPENSES
9. OFFICER / INSIDER COMPENSATION 29,092 22,358 22,949 74,399
10. SELLING & MARKETING
11. GENERAL & ADMINISTRATIVE 379,815 379,229 320,134 1,079,178
12. RENT & LEASE 154,667 154,667 154,667 464,001
13. OTHER (ATTACHED)
14. TOTAL OPERATING EXPENSES 563,574 556,254 497,750 1,617,578
15. INCOME BEFORE NON-OPERATING
INCOME & EXPENSE (247,362) (199,093) (111,886) (558,341)
OTHER INCOME & EXPENSES
16. NON-OPERATING INCOME
(ATT. LIST)
17. NON-OPERATING EXPENSE
(ATT. LIST)
18. INTEREST EXPENSE (254) 16,032 14,963 30,741
19. DEPRECIATION / DEPLETION 33,971 41,136 40,911 116,018
20. AMORTIZATION 2,225 2,789 2,789 7,803
21. OTHER (ATTACH LIST)
22. NET OTHER INCOME & EXPENSES 35,942 59,957 58,663 154,562
REORGANIZATION EXPENSES
23. PROFESSIONAL FEES
24. U.S. TRUSTEE FEES 250 3,500 3,750
25. OTHER (ATTACH LIST)
26. TOTAL REORGANIZATION
EXPENSES 250 3,500 3,750
27. INCOME TAX -
28. NET PROFIT (LOSS) (283,554) (262,550) (170,549) (716,653)
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 February, 2002 March, 2002
1. CASH - BEGINNING OF MONTH 158,006 246,158 368,166 158,006
RECEIPTS FROM OPERATIONS
2. CASH SALES 1,937 1,186 4,099 7,222
COLLECTION OF ACCOUNTS RECEIVABLES
3. PREPETITION 32,273 27,017 16,897 76,187
4. POSTPETITION 358,974 366,790 372,251 1,098,015
5. TOTAL OPERATING RECEIPTS 393,184 394,993 393,247 1,181,424
NON-OPERATING RECEIPTS
6. LOANS & ADVANCES (ATTACH LIST)
7. SALE OF ASSETS
8. OTHER (ATTACH LIST) 121,419 121,419
9. TOTAL NON-OPERATING RECEIPTS
10. TOTAL RECEIPTS 393,184 516,412 393,247 1,302,843
11. TOTAL CASH AVAILABLE 551,190 762,570 761,413 1,460,849
OPERATING DISBURSEMENTS
12. NET PAYROLL 138,609 103,896 99,698 342,203
13. PAYROLL TAXES PAID 54,946 43,028 48,385 146,359
14. SALES, USE & OTHER TAXES PAID 20 20
15. SECURED / RENTAL / LEASES
16. UTILITIES 4,226 167,632 165,966 337,824
17. INSURANCE 32,084 18,005 90,372 140,461
18. INVENTORY PURCHASES
19. VEHICLE EXPENSES
20. TRAVEL 190 231 335 756
21. ENTERTAINMENT
22. REPAIRS & MAINTENANCE 32,040 29,156 32,343 93,539
23. SUPPLIES 5,459 4,216 2,011 11,686
24. ADVERTISING
25. OTHER (ATTACH LIST) 37,228 24,490 33,572 95,290
26. TOTAL OPERATING DISBURSEMENTS 304,782 390,654 472,702 1,168,138
REORGANIZATION EXPENSES
27. PROFESSIONAL FEES
28. U.S. TRUSTEE FEES 250 3,750 4,000
29. OTHER (ATTACH LIST)
30. TOTAL REORGANIZATION EXPENSES 250 3,750 4,000
31. TOTAL DISBURSEMENTS 305,032 394,404 472,702 1,172,138
32. NET CASH FLOW 246,158 368,166 288,711 288,711
33. CASH - END OF MONTH 246,158 368,166 288,711 288,711
Case Name: Alford Refrigerated Warehouses, Inc. MOR-3
Case No: 01-39776-BJH-11
Jan. 02 Feb. 02 Mar. 02
8. Cash - beginning of month for Hilltop
Acquisition Holding Corporatation Case $ 0 $121,419 $ 0
No: 01-39371-SAF-11 substantively
consolidated for February
25. Bank Charges $ 429 $ 377 $ 127
Licenses & Fees 225 0 0
Consultant for Storm Water Prevention 0 0 7,020
Employee withholdings for Child Support,
Irs Levy, 401(K), Credit Union,
Medical Premiums 36,574 24,113 26,425
------- -------- --------
$37,228 $ 24,490 $ 33,572
CASE NAME: Alford Refrigerated Warehouses, Inc.
ACCRUAL BASIS-4
CASE NUMBER: 01-39776-BJH-11
ACCOUNTS RECEIVABLE ACCOUNTS
MONTH MONTH MONTH
January, 2002 February, 2002 March, 2002
1. 0-30 264,569 335,966 286,715
2. 31-60 60,438 36,875 83,371
3. 61-90 4,135 18,282 19,643
4. 91+ 64,782 60,860 56,970
5. TOTAL ACCOUNTS RECEIVABLE 393,924 451,983 446,699
6. AMOUNT CONSIDERED
UNCOLLECTIBLE
7. ACCOUNTS RECEIVABLE (NET) 393,924 451,983 446,699
AGING OF POSTPETITION TAXES AND PAYABLES MONTH: March, 2002
--------------
TAXES PAYABLE 0-30 DAYS 31-60 DAYS 61-90 DAYS 91+ DAYS TOTAL
1. FEDERAL 10,017 21,453 31,470
2. STATE
3. LOCAL 22,300 22,300 19,800 32,137 96,537
4. OTHER
(ATTACH LIST)
5. TOTAL TAXES
PAYABLE 22,300 22,300 29,817 53,590 128,007
6. ACCOUNTS PAYABLE 38,850 8,281 47,131
STATUS OF POSTPETITION TAXES MONTH: March, 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 31,470 31,470
6. OTHER (ATTACH LIST)
7. TOTAL FEDERAL TAXES 31,470 31,470
STATE AND LOCAL
8. WITHHOLDING
9. SALES
10. EXCISE
11. UNEMPLOYMENT
12. REAL PROPERTY 74,237 22,300 96,537
13. PERSONAL PROPERTY
14. OTHER (ATTACH LIST)
15. TOTAL STATE & LOCAL 74,237 22,300 96,537
16. TOTAL TAXES 105,707 22,300 128,007
<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>
CASE NAME: Alford Refrigerated Warehouses, Inc.
ACCRUAL BASIS-5
CASE NUMBER: 01-39776-BJH-11 MONTH: March, 2002
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.
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 General
Collateral
1. BALANCE PER BANK STATEMENT 82,517 66,756 0
2. ADD: TOTAL DEPOSITS NOT
CREDITED
3. SUBTRACT OUTSTANDING CHECKS 68,646 12,819
4. OTHER RECONCILING ITEMS
5. MONTH END BALANCE PER ITEMS 13,871 53,937
6. NUMBER OF LAST CHECK WRITTEN 40297 60021 28524
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
CASE NAME: Alford Refrigerated Warehouses, Inc. ACCRUAL BASIS-5
CASE NUMBER: 01-39776-BJH-11 MONTH: March, 2002
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.
BANK RECONCILIATIONS Account #4 Account #5 Account #6 TOTAL
A. BANK Compass Compass Compass
B. ACCOUNT NUMBER 050-1289-3 39796740 88069048
C. PURPOSE General Medical General
1. BALANCE PER BANK STATEMENT 0 0 0
2. ADD: TOTAL DEPOSITS NOT CREDITED
3. SUBTRACT OUTSTANDING CHECKS
4. OTHER RECONCILING ITEMS
5. MONTH END BALANCE PER ITEMS 0 0 0
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
TOTAL CASH END OF MONTH
CASE NAME: Alford Refrigerated Warehouses, Inc. ACCRUAL BASIS-5
CASE NUMBER: 01-39776-BJH-11 MONTH: March, 2002
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.
BANK RECONCILIATIONS Account #7 Account #8 Account #9 TOTAL
A. BANK Compass Compass Compass
B. ACCOUNT NUMBER 1880803026 1880803075 1880803083
C. PURPOSE DIP GE Cash Coll. FWCS Cash
1. BALANCE PER BANK STATEMENT 41,917 176,526 3,057 370,773
2. ADD: TOTAL DEPOSITS NOT CREDITED
3. SUBTRACT OUTSTANDING CHECKS 3,165 84,630
4. OTHER RECONCILING ITEMS
5. MONTH END BALANCE PER ITEMS 41,917 173,361 3,057 286,143
6. NUMBER OF LAST CHECK WRITTEN 1034 1036 30000
INVESTMENT ACCOUNTS
BANK ACCOUNT NAMES & NUMBER DATE OF TYPE OF PURCHASE CURRENT
PURCHASE INSTRUMENT PRICE VALUE
7.
8.
9.
10.
TOTAL INVESTMENTS 0
CASH
CURRENCY ON HAND 2,568
TOTAL CASH END OF MONTH 288,711
CASE NAME: Alford Refrigerated Warehouses, Inc.
ACCRUAL BASIS-6
CASE NUMBER: 01-39776-BJH-11 MONTH: March, 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 9,299 43,095
2. K. R. Mcginnis Salary 7,649 35,128
3. J. Y. Robichaud Salary 6,000 26,000
4.
5.
TOTAL PAYMENTS TO 22,948 104,223
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 1,502 1,502 2,968
2. Cananwill, Inc. 10,325 12,906 37,994
3. Republic Group 2,351 3,522 14,292
4.
5.
6. TOTAL PAYMENTS TO PROFESSIONALS 17,930 55,254
CASE NAME: Alford Refrigerated Warehouses, Inc.
ACCRUAL BASIS-7
CASE NUMBER: 01-39776-BJH-11 MONTH: March, 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 03/22/02 - 03/22/03 $170,073 per year
Excess Property Westchester/Commonwealth 03/22/02 - 03/22/03 102,359 per year
Boiler & Mach Travelers 03/22/02 - 03/22/03 10,061 per year
CGL Republic 08/01/01 - 08/01/02 19,912 per year
Commercial Umb. Republic 08/01/01 - 08/01/02 6,329 per year
Worker's Comp United Nat'l 09/12/01 - 09/12/02 113,924 per year
Case Name: Alford Refrigerated Warehouses, Inc. MOR-7
Case No: 01-39776-BJH-11
4. Payments have been made for insurance financing installments. Payments are
detailed on MOR-6.
5. The debtor renewed its property, excess property and boiler insurance in
March. The debtor signed a finance agreement with Premium Finance Services
in the principal amount of $211,644.60. This agreement runs for a period of
nine months. The court has approved the agreement.