Exhibit 1.1
CASE NAME: ACCRUAL BASIS
CASE: 2/13/95
JUDGE:
UNITED STATES BANKRUPTCY COURT
NORTHERN DISTRICT OF TEXAS
MONTHLY OPERATING REPORTS
MONTH ENDING: JULY 31, 2002
IN ACCORDANCE WITH TITLE 28, SECTION 1746, OF THE UNITED STATES CODE, I DECLARE
UNDER PENALTY OF PERJURY I HAVE EXAMINED THE FOLLOWING MONTHLY OPERATING REPORT
(ACCURAL BASIS-1THROUGH ACCURAL 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
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ORIGINAL SIGNATURE OF RESPONSIBLE PARTY TITLE
James C. Williams August 19, 2002
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PRINTED NAME OF RESPONSIBLE PARTY DATE
PREPARER:
Chief Fianacial Officer
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ORIGINAL SIGNATURE OF PREPARER TITLE
James C. Williams August 19, 2002
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PRINTED NAME OF PREPARER DATE
CASE NAME: Alford Refrigerated Warehouses, Inc. ACCRUAL BASIS-1
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CASE NUMBER: 01-39776-BJH-11
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COMPARATIVE BALANCE SHEET
ASSETS SCHEDULE MONTH MONTH MONTH
AMOUNT
Jul. 2002
- -------------------------------------- ---------------------- ------------------ --------------------- ---------------------
1. UNRESTRICTED CASH 618,613
2. RESTRICTED CASH
3. TOTAL CASH 618,613
4. ACCOUNTS RECEIVABLE, NET 466,134
- -------------------------------------- ---------------------- ------------------ --------------------- ---------------------
5. INVENTORY
6. NOTES RECEIVABLE
7. PREPAID EXPENSES 224,086
8. OTHER (ATTACH LIST)
9. TOTAL CURRENT ASSETS 1,308,833
- -------------------------------------- ---------------------- ------------------ --------------------- ---------------------
10. PROPERTY, PLANT, & EQUIPMENT 7,570,735
11. LESS:ACCUMULATED 3,217,679
DEPRECIATION/DEPLETION
12. NET PROPERTY, PLANT & EQUIPMENT 4,353,056
- -------------------------------------- ---------------------- ------------------ --------------------- ---------------------
13. DUE FROM INSIDERS (1,005,669)
14. OTHER ASSETS - NET OF 245,611
15. OTHER (ATTACH LIST) 175,996
16. TOTAL ASSETS 5,077,827
- -------------------------------------- ---------------------- ------------------ --------------------- ---------------------
POST PETITION LIABILITIES
17. ACCOUNTS PAYABLE 702,810
18. TAXES PAYABLE 217,207
19. NOTES PAYABLE 139,919
20. PROFESSIONAL FEES
21. SECURED DEBT
22. OTHER (ATTACH LIST) 939
23. TOTAL POSTPETITION LIABILITIES 1,060,875
- -------------------------------------- ---------------------- ------------------ --------------------- ---------------------
PREPETITION LIABILITIES
24. SECURED DEBT 4,661,074
25. PRIORITY DEBT 60,090
26. UNSECURED DEBT 3,087,862
27. OTHER (ATTACH LIST) 849,441
28. TOTAL PREPETITION LIABILITIES 8,658,467
29. TOTAL LIABILITIES 9,719,342
EQUITY
- -------------------------------------- ---------------------- ------------------ --------------------- ---------------------
30. PREPETITION OWNER'S EQUITY (2,726,032)
31. POSTPETITION CUMULATIVE PROFIT OR (1,915,483)
(LOSS)
32. DIRECT CHARGES TO EQUITY
33. TOTAL EQUITY (4,641,515)
- -------------------------------------- ---------------------- ------------------ --------------------- ---------------------
34. TOTAL LIABILITIES & OWNERS' EQUITY 5,077,827
Case Name: Alford Refrigerated Warehouses, Inc. MOR-1
Case No: 01-39776-BJH-11
July '02
14. Capitalized Professional Fees $ 245,611
net of Amortization
15. Investment in Subsidiaries $ 10
Deposits 175,986
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$ 175,996
22. Deferred Revenue $ 939
27. Deferred Income Taxes $ 697,039
Deferred Revenue 152,402
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$ 849,441
CASE NAME: Alford Refrigerated Warehouses, Inc. ACCRUAL BASIS-2
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CASE NUMBER: 01-39776-BJH-11
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INCOME STATEMENT
- ------------------------------------------ ---------------------- ------------------- ----------------------- ------------------
REVENUES MONTH MONTH MONTH QUARTER
TOTAL
July, 2002
1. GROSS REVENUES 454,476 454,476
2. LESS: RETURNS & DISCOUNTS
3. NET REVENUE 454,476 454,476
COSTS OF GOODS SOLD
4. MATERIAL
5. DIRECT LABOR
6. DIRECT OVERHEAD
7. TOTAL COST OF GOODS SOLD
8. GROSS PROFIT 454,476 454,476
OPERATING EXPENSES
9. OFFICER / INSIDER COMPENSATION 20,324 20,324
10. SELLING & MARKETING
11. GENERAL & ADMINISTRATIVE 425,732 425,732
12. RENT & LEASE 154,667 154,667
13. OTHER (ATTACH LIST)
14. TOTAL OPERATING EXPENSES 600,723 600,723
15. INCOME BEFORE NON-OPERATING (146,247) (146,247)
INCOME & EXPENSE
OTHER INCOME & EXPENSE
16. NON-OPERATING INCOME (ATTACH LIST)
17. NON-OPERATING EXPENSE (ATTACH LIST)
18. INTEREST EXPENSE 16,274 16,274
19. DEPRECIATION / DEPLETION 38,962 38,962
20. AMORITIZATION 2,789 2,789
21. OTHER (ATTACH LIST)
22. NET OTHER INCOME & EXPENSES 58,025 58,025
REORGANIZATION EXPENSES
23. PROFESSIONAL FEES
24. U.S. TRUSTEE FEES 3,750 3,750
25. OTHER (ATTACH LIST)
26. TOTAL REORGANIZATION EXPENSES 3,750 3,750
27. INCOME TAX
28. NET PROFIT (LOSS) (208,022) (208,022)
CASE NAME: Alford Refrigerated Warehouses, Inc. ACCRUAL BASIS-3
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CASE NUMBER: 01-39776-BJH-11
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CASH RECEIPTS AND MONTH MONTH MONTH QUARTER
DISBURSEMENTS TOTAL
July, 2002
1. CASH - BEGINNING OF MONTH 450,767 450,767
RECEIPTS FROM OPERATORS
2. CASH SALES 4,508 4,508
COLLECTIONS OF ACCOUNTS RECEIVABLE
3. PREPETITION 1,476 1,476
4. POSTPETITION 506,445 506,445
5. TOTAL OPERATING RECEIPTS 512,429 512,429
NON-OPERATING RECEIPTS
6. LOANS & ADVANCES (ATTACH LIST)
7. SALE OF ASSETS
8. OTHER (ATTACH LIST)
9. TOTAL NON-OPERATING RECEIPTS
10. TOTAL RECEIPTS 512,429 512,429
11. TOTAL CASH AVAILABLE 963,196 963,196
OPERATING DISBURSEMENTS
12. NET PAYROLL 108,855 108,855
13. PAYROLL TAXES PAID 44,065 44,065
14. SALES, USE & OTHER TAXES PAID
15. SECURED / RENTAL / LEASE 23,694 23,694
16. UTILITIES 55,900 55,900
17. INSURANCE 31,956 31,956
18. INVENTORY PURCHASES
19. VEHICLE EXPENSES
20. TRAVEL 193 193
21. ENTERTAINMENT
22. REPAIRS & MAINTENANCE 37,237 37,237
23. SUPPLIES 7,332 7,332
24. ADVERTISING
25. OTHER (ATTACH LIST) 31,351 31,351
26. TOTAL OPERATING DISBURSEMENTS 340,583 340,583
REORGANIZATION EXPENSES
27. PROFESSIONAL FEES
28. U.S. TRUSTEE FEES 4,000 4,000
29. OTHER (ATTACH LIST)
30. TOTAL REORGANIZATION EXPENSES 4,000 4,000
31. TOTAL DISBURSEMENTS 344,583 344,583
32. NET CASH FLOW 618,613 618,613
33. CASH - END OF MONTH 618,613 618,613
Case Name: Alford Refrigerated Warehouses, Inc. MOR-3
Case No: 01-39776-BJH-11
July 02
25. Bank Charges $ 283
Licenses & Fees 0
Employee withholdings for Child Support,
Irs Levy, 401(K), Credit Union,
Medical Premiums 31,068
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$31,351
CASE NAME: Alford Refrigerated Warehouses, Inc. ACCRUAL BASIS-4
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CASE NUMBER: 01-39776-BJH-11
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ACCOUNTS RECEIVABLE AGING SCHEDULE MONTH MONTH MONTH
AMOUNT
July, 2002
1. 0 - 30 283,546
2. 31 - 60 37,843
3. 61 - 90 19,700
4. 91 + 35,352
5. TOTAL ACCOUNTS RECEIVABLE 376,441
6. AMOUNT CONSIDERED UNCOLLECTABLE
7. ACCOUNTS RECEIVABLE, NET 376,441
AGING OF POSTPETITION TAXES AND PAYABLES MONTH: July, 2002
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TAXES PAYABLE 0 - 30 DAYS 31 - 60 DAYS 61 - 90 DAYS 91+ TOTAL
DAYS
1. FEDERAL 31,470 31,470
2. STATE
3. LOCAL 22,300 22,300 22,300 118,837 185,737
4. OTHER (ATTACH LIST)
5. TOTAL TAXES PAYABLE 22,300 22,300 22,300 150,307 217,207
6. ACCOUNTS PAYABLE 41,740 0 0 216 41,956
STATUS OF POSTPETITION TAXES MONTH: July, 2002
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FEDERAL *BEGINNING TAX AMOUNT WITHHELD AND OR AMOUNT ENDING TAX
LIABILITY ACCRUED PAID 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
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STATE AND LOCAL
8. WITHHOLDING
9. SALES
10. EXCISE
11. UNEMPLOYMENT
12. REAL PROPERTY 163,437 22,300 185.737
13. PERSONAL PROPERTY
14. OTHER (ATTACH LIST)
15. TOTAL STATE AND LOCAL 163,437 22,300 185,737
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16. TOTAL TAXES 194,907 22,300 217,207
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* The beginning tax liability should represent the liability from the prior
month or, if this is the first operating report, this amount should be zero
** Attach photocopies of IRS Form 6123 or your FTD coupon and payment receipt to
verify payment or deposit.
CASE NAME: Alford Refrigerated Warehouses, Inc. ACCRUAL BASIS-5
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CASE NUMBER: 01-39776-BJH-11 MONTH: July, 2002
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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 160,221 53,377 40,904
2. ADD: TOTAL DEPOSITS NOT CREDITED
3. SUBTRACT: OUTSTANDING CHECKS 212 27,178
4. OTHER RECONCILING ITEMS
5. MONTH END BALANCE PER ITEMS 160,009 26,199 40,904
6. NUMBER OF LAST CHECK WRITTEN 40298 60400 1034
INVESTMENT ACCOUNTS Account #1 Account #2 Account #3
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BANK, ACCOUNT NAME & 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
13. TOTAL CASH - END OF MONTH
CASE NAME: Alford Refrigerated Warehouses, Inc. ACCRUAL BASIS-5
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CASE NUMBER: 01-39776-BJH-11 MONTH: July, 2002
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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
--------------- --------------- ---------------
A. BANK Comerica Comerica
B. ACCOUNT NUMBER 1880803075 1880803083 Total
C. PURPOSE (TYPE) GE Cash Coll. FWCS Cash
1. BALANCE PER BANK STATEMENT 380,055 8,878 643,435
2. ADD: TOTAL DEPOSITS NOT CREDITED
3. SUBTRACT: OUTSTANDING CHECKS 27,390
4. OTHER RECONCILING ITEMS
5. MONTH END BALANCE PER ITEMS 380,055 8,878 616,045
6. NUMBER OF LAST CHECK WRITTEN 1101 30002
INVESTMENT ACCOUNTS Account #4 Account #5 Account #6
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BANK, ACCOUNT NAME & 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 618,613
CASE NAME: Alford Refrigerated Warehouses, Inc. ACCRUAL BASIS-6
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CASE NUMBER: 01-39776-BJH-11 MONTH: July, 2002
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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
NAME TYPE OF PAYMENT AMOUNT PAID TOTAL PAID TO DATE
1.J.C. Williams Salary 10,120 81,942
2.K.R. McGinnis Salary 10,205 69,088
3.J.Y. Robichaud Salary 0 26,000
4.
5.
6. TOTAL PAYMENTS TO INSIDERS 20,325 177,030
PROFESSIONALS
NAME DATE OF COURT AMOUNT AMOUNT TOTAL TOTAL
ORDER AUTHORIZING 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
NAME OF CREDITOR SCHEDULED MONTHLY AMOUNTS PAID TOTAL UNPAID
PAYMENTS DUE DURING MONTH POSTPETITION
1.Republic Group 2,331 2,331 0
2.G.E. Business Asset 23,694 23,694 1,891,777
3.
4.
5.
6. TOTAL PAYMENTS TO PROFESSIONALS 26,025 1,891,777
CASE NAME: Alford Refrigerated Warehouses, Inc. ACCRUAL BASIS-7
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CASE NUMBER: 01-39776-BJH-11 MONTH: July, 2002
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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 wages 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.
INSURANCE YES NO
1. ARE WORKER'S COMPENSATION, GENERAL LIABILITY AND OTHER NECESSARY INSURANCE COVERAGES IN X
EFFECT?
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.
INSTALLMENT PAYMENTS
TYPE OF POLICY CARRIER PERIOD COVERED PAYMENT AMOUNT AND
FREQUENCY
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' 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 and long term
secured debt. Payments are detailed on MOR-6.