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: APRIL 30, 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 May 17, 2002
- --------------------------------------- ---------------------------------
PRINTED NAME OF RESPONSIBLE PARTY DATE
PREPARER:
Chief Financial Officer
- --------------------------------------- ---------------------------------
ORIGINAL SIGNATURE OF PREPARER TITLE
James C. Williams May 17, 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 Apr. 2002
1. UNRESTRICTED CASH 397,191
2. RESTRICTED CASH
3. TOTAL CASH 397,191
4. ACCOUNTS RECEIVABLE (NET) 493,871
5. INVENTORY
6. NOTES RECEIVABLE
7. PREPAID EXPENSES 354,389
8. OTHER (ATTACH LIST)
9. TOTAL CURRENT ASSETS 1,235,451
10. PROPERTY, PLANT & EQUIPMENT 7,570,735
11. LESS: ACCUMULATED
DEPRECIATION / DEPLETION 3,099,517
12. NET PROPERTY, PLANT &
EQUIPMENT 4,471,218
13. DUE FROM INSIDERS (541,669)
14. OTHER ASSETS - NET OF 253,979
15. OTHER (ATTACH LIST) 126,276
16. TOTAL ASSETS 5,545,255
POST PETITION LIABILITIES
17. ACCOUNTS PAYABLE 413,436
18. TAXES PAYABLE 150,307
19. NOTES PAYABLE 225,305
20. PROFESSIONAL FEES
21. SECURED DEBT
22. OTHER (ATTACH LIST) 650
23. TOTAL POSTPETITION
LIABILITIES 789,698
PREPETITION LIABILITIES
24. SECURED DEBT 4,709,055
25. PRIORITY DEBT 60,090
26. UNSECURED DEBT 3,087,862
27. OTHER (ATTACH LIST) 849,441
28. TOTAL PREPETITION LIABILITIES 8,706,448
29. TOTAL LIABILITIES 9,496,146
EQUITY
30. PREPETITION OWNER'S EQUITY (2,726,032)
31. POSTPETITION CUMULATIVE
PROFIT OR (LOSS) (1,224,859)
32. DIRECT CHARGES TO EQUITY
(ATTACH EXPLANATION)
33. TOTAL EQUITY (3,950,891)
34. TOTAL LIABILITIES &
OWNER'S EQUITY 5,545,255
Case Name: Alford Refrigerated Warehouses, Inc. MOR-1
Case No: 01-39776-BJH-11
April `02
14. Capitalized Professional Fees $ 253,979
net of Amortization
15. Investment in Subsidiaries $ 10
Deposits 126,266
-----------
$ 126,276
22. Deferred Revenue $ 650
27. Deferred Income Taxes $ 697,039
Deferred Revenue 152,402
-----------
$ 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 April, 2002
1. GROSS REVENUES 360,783 360,783
2. LESS: RETURNS & DISCOUNTS
3. NET REVENUE 360,783 360,783
COST OF GOODS SOLD
4. MATERIAL
5. DIRECT LABOR
6. DIRECT OVERHEAD
7. TOTAL COST OF GOODS SOLD
8. GROSS PROFIT 360,783 360,783
OPERATING EXPENSES
9. OFFICER / INSIDER COMPENSATION 17,588 17,588
10. SELLING & MARKETING
11. GENERAL & ADMINISTRATIVE 360,892 360,892
12. RENT & LEASE 154,667 154,667
13. OTHER (ATTACHED)
14. TOTAL OPERATING EXPENSES 533,147 533,147
15. INCOME BEFORE NON-OPERATING
INCOME & EXPENSE (172,364) (172,364)
OTHER INCOME & EXPENSES
16. NON-OPERATING INCOME
(ATT. LIST)
17. NON-OPERATING EXPENSE
(ATT. LIST)
18. INTEREST EXPENSE 17,835 17,835
19. DEPRECIATION / DEPLETION 39,970 39,970
20. AMORTIZATION 2,789 2,789
21. OTHER (ATTACH LIST)
22. NET OTHER INCOME & EXPENSES 60,594 60,594
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) (232,958) (232,958)
CASE NAME: Alford Refrigerated Warehouses, Inc.
ACCRUAL BASIS-3
CASE NUMBER: 01-39776-BJH-11
CASH RECEIPTS AND DISBURSEMENTS
MONTH MONTH MONTH QUARTER
TOTAL
April, 2002
1. CASH - BEGINNING OF MONTH 288,711 288,711
RECEIPTS FROM OPERATIONS
2. CASH SALES 3,593 3,593
COLLECTION OF ACCOUNTS RECEIVABLES
3. PREPETITION 6,778 6,778
4. POSTPETITION 406,760 406,760
5. TOTAL OPERATING RECEIPTS 417,131 417,131
NON-OPERATING RECEIPTS
6. LOANS & ADVANCES (ATTACH LIST)
7. SALE OF ASSETS
8. OTHER (ATTACH LIST)
9. TOTAL NON-OPERATING RECEIPTS
10. TOTAL RECEIPTS 417,131 417,131
11. TOTAL CASH AVAILABLE 705,842 705,842
OPERATING DISBURSEMENTS
12. NET PAYROLL 88,982 88,982
13. PAYROLL TAXES PAID 48,184 48,184
14. SALES, USE & OTHER TAXES PAID
15. SECURED / RENTAL / LEASES
16. UTILITIES 39,235 39,235
17. INSURANCE 70,892 70,892
18. INVENTORY PURCHASES
19. VEHICLE EXPENSES
20. TRAVEL 190 190
21. ENTERTAINMENT
22. REPAIRS & MAINTENANCE 34,072 34,072
23. SUPPLIES 1,783 1,783
24. ADVERTISING
25. OTHER (ATTACH LIST) 25,313 25,313
26. TOTAL OPERATING DISBURSEMENTS 308,651 308,651
REORGANIZATION EXPENSES
27. PROFESSIONAL FEES
28. U.S. TRUSTEE FEES
29. OTHER (ATTACH LIST)
30. TOTAL REORGANIZATION EXPENSES
31. TOTAL DISBURSEMENTS 308,651 308,651
32. NET CASH FLOW 397,191 397,191
33. CASH - END OF MONTH 397,191 397,191
Case Name: Alford Refrigerated Warehouses, Inc. MOR-3
Case No: 01-39776-BJH-11
Apr. 02
25. Bank Charges $ 204
Licenses & Fees 53
Employee withholdings for Child Support,
Irs Levy, 401(K), Credit Union,
Medical Premiums 25,056
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$25,313
CASE NAME: Alford Refrigerated Warehouses, Inc.
ACCRUAL BASIS-4
CASE NUMBER: 01-39776-BJH-11
ACCOUNTS RECEIVABLE ACCOUNTS
MONTH MONTH MONTH
April, 2002
1. 0-30 284,329
2. 31-60 34,837
3. 61-90 18,090
4. 91+ 56,923
5. TOTAL ACCOUNTS RECEIVABLE 394,179
6. AMOUNT CONSIDERED
UNCOLLECTIBLE
7. ACCOUNTS RECEIVABLE (NET) 394,179
AGING OF POSTPETITION TAXES AND PAYABLES MONTH: April, 2002
--------------
TAXES PAYABLE 0-30 DAYS 31-60 DAYS 61-90 DAYS 91+ DAYS TOTAL
1. FEDERAL 31,470 31,470
2. STATE
3. LOCAL 22,300 22,300 22,300 51,937 118,837
4. OTHER
(ATTACH LIST)
5. TOTAL TAXES
PAYABLE 22,300 22,300 22,300 83,407 150,307
6. ACCOUNTS PAYABLE 31,711 216.00 0 8,281 40,208
STATUS OF POSTPETITION TAXES MONTH: April, 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 96,537 22,300 118,837
13. PERSONAL PROPERTY
14. OTHER (ATTACH LIST)
15. TOTAL STATE & LOCAL 96,537 22,300 118,837
16. TOTAL TAXES 128,007 22,300 150,307
<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: April, 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 Comerica
B. ACCOUNT NUMBER 1880803067 1880803091 1880803026 Total
C. PURPOSE (TYPE) DIP Cash DIP
Collateral
1. BALANCE PER BANK STATEMENT 72,352 64,911 41,913
2. ADD: TOTAL DEPOSITS NOT
CREDITED
3. SUBTRACT OUTSTANDING CHECKS 225 31,231
4. OTHER RECONCILING ITEMS
5. MONTH END BALANCE PER ITEMS 72,127 33,680 41,913
6. NUMBER OF LAST CHECK WRITTEN 40297 60114 1033
INVESTMENT ACCOUNTS
DATE OF TYPE OF PURCHASE CURRENT
BANK ACCOUNT NAME & NUMBER PURCHASE INSTRUMENT PRICE VALUE
7. ACCOUNT NUMBER
8. PURPOSE (TYPE):
9. BALANCE PER BANK STATEMENT
10. ADD: TOTAL DEPOSITS NOT CREDITED
11. TOTAL INVESTMENTS
CASH
12. CURRENCY ON HAND
13. TOTAL CASH END OF MONTH
CASE NAME: Alford Refrigerated Warehouses, Inc. ACCRUAL BASIS-5
CASE NUMBER: 01-39776-BJH-11 MONTH: April, 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 Comerica Comerica
B. ACCOUNT NUMBER 1880803075 1880803083
C. PURPOSE GE Cash Coll. FWCS Cash
1. BALANCE PER BANK STATEMENT 250,751 4,546 434,473
2. ADD: TOTAL DEPOSITS NOT CREDITED
3. SUBTRACT OUTSTANDING CHECKS 8,394 39,850
4. OTHER RECONCILING ITEMS
5. MONTH END BALANCE PER ITEMS 242,357 4,546 394,623
6. NUMBER OF LAST CHECK WRITTEN 1050 30000
INVESTMENT ACCOUNTS
BANK ACCOUNT NAMES & NUMBER DATE OF TYPE OF PURCHASE CURRENT
PURCHASE INSTRUMENT PRICE VALUE
7. ACCOUNT NUMBER
8. PURPOSE (TYPE):
9. BALANCE PER BANK STATEMENT
10. ADD: TOTAL DEPOSITS NOT CREDITED
11. TOTAL INVESTMENTS
CASH
12. CURRENCY ON HAND 2,568
13. TOTAL CASH END OF MONTH 397,191
CASE NAME: Alford Refrigerated Warehouses, Inc.
ACCRUAL BASIS-6
CASE NUMBER: 01-39776-BJH-11 MONTH: April, 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 9,622 52,717
2. K. R. Mcginnis Salary 7,965 43,093
3. J. Y. Robichaud Salary 0 26,000
4.
5.
TOTAL PAYMENTS TO 17,587 121,810
INSIDERS
PROFESSIONALS
DATE OF COURT AMOUNT AMOUNT TOTAL TOTAL
NAME AUTHORIZED APPROVED PAID PAID TO INCURRED
PAYMENT DATE & UNPAID
1.
2.
3.
4.
5.
6. TOTAL PAYMENTS TO PROFESSIONALS 0 0 0 0
*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 1,490
2. Cananwill, Inc. 10,325 12,906 23,012
3. Republic Group 2,351 3,522 10,765
4.
5.
6. TOTAL PAYMENTS TO PROFESSIONALS 17,930 35,267
CASE NAME: Alford Refrigerated Warehouses, Inc.
ACCRUAL BASIS-7
CASE NUMBER: 01-39776-BJH-11 MONTH: April, 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 & Machinery Travelers 03/22/02 - 03/22/03 10,061 per year
CGL Republic 08/01/01 - 08/01/02 19,912 per year
Commercial Umbrella Republic 08/01/01 - 08/01/02 6,329 per year
Worker's Compensation United National 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 Warehouseman's Legal Liability insurance in April.
The debtor signed a finance agreement with A.I. Credit Corp. in the
principal amount of $36,594.00. This agreement runs for a period of seven
months. The court has approved the agreement.