CASE NAME: ACCRUAL BASIS
CASE: 2/13/95
JUDGE:
UNITED STATES BANKRUPTCY COURT
NORTHERN DISTRICT OF TEXAS
MONTHLY OPERATING REPORTS
MONTH ENDING: AUGUST 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
- --------------------------------------- -----------------------------------
ORIGINAL SIGNATURE OF RESPONSIBLE PARTY TITLE
James C. Williams September 19, 2002
- --------------------------------------- -----------------------------------
PRINTED NAME OF RESPONSIBLE PARTY DATE
PREPARER:
Chief Fianacial Officer
- ---------------------------------------- -----------------------------------
ORIGINAL SIGNATURE OF PREPARER TITLE
James C. Williams September 19, 2002
- ---------------------------------------- -----------------------------------
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 Aug. 2002
- -------------------------------------- ---------------------- ------------------ --------------------- ---------------------
1. UNRESTRICTED CASH 618,613 463,853
2. RESTRICTED CASH
3. TOTAL CASH 618,613 463,853
4. ACCOUNTS RECEIVABLE, NET 466,134 519,622
- -------------------------------------- ---------------------- ------------------ --------------------- ---------------------
5. INVENTORY
6. NOTES RECEIVABLE
7. PREPAID EXPENSES 224,086 262,616
8. OTHER (ATTACH LIST)
9. TOTAL CURRENT ASSETS 1,308,833 1,246,091
- -------------------------------------- ---------------------- ------------------ --------------------- ---------------------
10. PROPERTY, PLANT, & EQUIPMENT 7,570,735 7,570,735
11. LESS:ACCUMULATED 3,217,679 3,256,597
DEPRECIATION/DEPLETION
12. NET PROPERTY, PLANT & EQUIPMENT 4,353,056 4,314,138
- -------------------------------------- ---------------------- ------------------ --------------------- ---------------------
13. DUE FROM INSIDERS (1,005,669) (1,152,592)
14. OTHER ASSETS - NET OF 245,611 242,822
15. OTHER (ATTACH LIST) 175,996 179,796
16. TOTAL ASSETS 5,077,827 4,830,255
- -------------------------------------- ---------------------- ------------------ --------------------- ---------------------
POST PETITION LIABILITIES
17. ACCOUNTS PAYABLE 702,810 667,890
18. TAXES PAYABLE 217,207 239,507
19. NOTES PAYABLE 139,919 172,832
20. PROFESSIONAL FEES
21. SECURED DEBT
22. OTHER (ATTACH LIST) 939 939
23. TOTAL POSTPETITION LIABILITIES 1,060,875 1,081,168
- -------------------------------------- ---------------------- ------------------ --------------------- ---------------------
PREPETITION LIABILITIES
24. SECURED DEBT 4,661,074 4,572,322
25. PRIORITY DEBT 60,090 60,090
26. UNSECURED DEBT 3,087,862 3,087,862
27. OTHER (ATTACH LIST) 849,441 839,848
28. TOTAL PREPETITION LIABILITIES 8,658,467 8,560,122
29. TOTAL LIABILITIES 9,719,342 9,641,290
- -------------------------------------- ---------------------- ------------------ --------------------- ---------------------
EQUITY
30. PREPETITION OWNER'S EQUITY (2,726,032) (2,726,032)
31. POSTPETITION CUMULATIVE PROFIT OR (1,915,483) (2,085,003)
(LOSS)
32. DIRECT CHARGES TO EQUITY
33. TOTAL EQUITY (4,641,515) (4,811,035)
- -------------------------------------- ---------------------- ------------------ --------------------- ---------------------
34. TOTAL LIABILITIES & OWNERS' EQUITY 5,077,827 4,830,255
Case Name: Alford Refrigerated Warehouses, Inc. MOR-1
Case No: 01-39776-BJH-11
July '02 Aug '02
14. Capitalized Professional Fees $ 245,611 $ 242,822
net of Amortization
15. Investment in Subsidiaries $ 10 $ 10
Deposits 175,986 179,786
------------ ---------
$ 175,996 $ 179,796
22. Deferred Revenue $ 939 $ 939
27. Deferred Income Taxes $ 697,039 $ 697,039
Deferred Revenue 152,402 142,809
------------ ---------
$ 849,441 $ 839,848
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 August, 2002
1. GROSS REVENUES 454,476 460,496 914,972
2. LESS: RETURNS & DISCOUNTS
3. NET REVENUE 454,476 460,496 914,972
- ------------------------------------------ ---------------------- ------------------- ----------------------- ------------------
COSTS OF GOODS SOLD
4. MATERIAL
5. DIRECT LABOR
6. DIRECT OVERHEAD
7. TOTAL COST OF GOODS SOLD
8. GROSS PROFIT 454,476 460,496 914,972
- ------------------------------------------ ---------------------- ------------------- ----------------------- ------------------
OPERATING EXPENSES
9. OFFICER / INSIDER COMPENSATION 20,324 15,829 26,153
10. SELLING & MARKETING
11. GENERAL & ADMINISTRATIVE 425,732 399,969 825,701
12. RENT & LEASE 154,667 154,667 309,334
13. OTHER (ATTACH LIST)
14. TOTAL OPERATING EXPENSES 600,723 570,465 1,171,188
15. INCOME BEFORE NON-OPERATING (146,247) (109,969) (256,216)
INCOME & EXPENSE
- ------------------------------------------ ---------------------- ------------------- ----------------------- ------------------
OTHER INCOME & EXPENSE
16. NON-OPERATING INCOME (ATTACH LIST)
17. NON-OPERATING EXPENSE (ATTACH LIST)
18. INTEREST EXPENSE 16,274 16,594 32,868
19. DEPRECIATION / DEPLETION 38,962 38,919 77,881
20. AMORITIZATION 2,789 2,789 5,578
21. OTHER (ATTACH LIST)
22. NET OTHER INCOME & EXPENSES 58,025 58,302 116,327
- ------------------------------------------ ---------------------- ------------------- ----------------------- ------------------
REORGANIZATION EXPENSES
23. PROFESSIONAL FEES
24. U.S. TRUSTEE FEES 3,750 1,250 5,000
25. OTHER (ATTACH LIST)
26. TOTAL REORGANIZATION EXPENSES 3,750 1,250 5,000
27. INCOME TAX
28. NET PROFIT (LOSS) (208,022) (169,521) (377,543)
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 August, 2002
- ------------------------------------------ ---------------------- ------------------- ----------------------- ------------------
1. CASH - BEGINNING OF MONTH 450,767 618,613 450,767
- ------------------------------------------ ---------------------- ------------------- ----------------------- ------------------
RECEIPTS FROM OPERATORS
2. CASH SALES 4,508 2,832 7,340
- ------------------------------------------ ---------------------- ------------------- ----------------------- ------------------
COLLECTIONS OF ACCOUNTS RECEIVABLE
3. PREPETITION 1,476 1,476
4. POSTPETITION 506,445 400,652 907,097
5. TOTAL OPERATING RECEIPTS 512,429 403,484 915,913
- ------------------------------------------ ---------------------- ------------------- ----------------------- ------------------
NON-OPERATING RECEIPTS
6. LOANS & ADVANCES (ATTACH LIST)
7. SALE OF ASSETS
8. OTHER (ATTACH LIST)
9. TOTAL NON-OPERATING RECEIPTS
10. TOTAL RECEIPTS 512,429 403,484 915,913
11. TOTAL CASH AVAILABLE 963,196 1,022,097 1,366,680
- ------------------------------------------ ---------------------- ------------------- ----------------------- ------------------
OPERATING DISBURSEMENTS
12. NET PAYROLL 108,855 88,515 197,370
13. PAYROLL TAXES PAID 44,065 34,246 78,311
14. SALES, USE & OTHER TAXES PAID
15. SECURED / RENTAL / LEASE 23,694 109,704 133,398
16. UTILITIES 55,900 183,864 239,764
17. INSURANCE 31,956 51,126 83,082
18. INVENTORY PURCHASES
19. VEHICLE EXPENSES
20. TRAVEL 193 2,844 3,037
21. ENTERTAINMENT
22. REPAIRS & MAINTENANCE 37,237 30,374 67,611
23. SUPPLIES 7,332 8,600 15,932
24. ADVERTISING
25. OTHER (ATTACH LIST) 31,351 47,721 79,072
26. TOTAL OPERATING DISBURSEMENTS 340,583 556,994 897,577
- ------------------------------------------ ---------------------- ------------------- ----------------------- ------------------
REORGANIZATION EXPENSES
27. PROFESSIONAL FEES
28. U.S. TRUSTEE FEES 4,000 1,250 5,250
29. OTHER (ATTACH LIST)
30. TOTAL REORGANIZATION EXPENSES 4,000 1,250 5,250
31. TOTAL DISBURSEMENTS 344,583 558,244 902,827
32. NET CASH FLOW 618,613 463,853 463,853
33. CASH - END OF MONTH 618,613 463,853 463,853
Case Name: Alford Refrigerated Warehouses, Inc. MOR-3
Case No: 01-39776-BJH-11
July '02 Aug '02
25. Bank Charges $ 283 $ 229
Licenses & Fees 0 18,760
Deposits 0 3,800
Employee withholdings for Child Support,
Irs Levy, 401(K), Credit Union,
Medical Premiums 31,068 24,932
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$ 31,351 $ 47,721
CASE NAME: Alford Refrigerated Warehouses, Inc. ACCRUAL BASIS-4
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CASE NUMBER: 01-39776-BJH-11
ACCOUNTS RECEIVABLE AGING SCHEDULE MONTH MONTH MONTH
AMOUNT
July, 2002 August, 2002
- ------------------------------------------ ---------------------- ------------------- ----------------------- ------------------
1. 0 - 30 283,546 324,998
2. 31 - 60 37,843 51,905
3. 61 - 90 19,700 8,788
4. 91 + 35,352 44,239
5. TOTAL ACCOUNTS RECEIVABLE 376,441 429,930
6. AMOUNT CONSIDERED UNCOLLECTABLE
7. ACCOUNTS RECEIVABLE, NET 376,441 429,930
AGING OF POSTPETITION TAXES AND PAYABLES MONTH: August, 2002
-------------
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 22,300 141,137 208,037
4. OTHER (ATTACH LIST)
5. TOTAL TAXES PAYABLE 22,300 22,300 22,300 172,607 239,507
6. ACCOUNTS PAYABLE 238,377 1,110 0 2,977 242,464
STATUS OF POSTPETITION TAXES MONTH: August, 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
STATE AND LOCAL
8. WITHHOLDING
9. SALES
10. EXCISE
11. UNEMPLOYMENT
12. REAL PROPERTY 185,737 22,300 208,037
13. PERSONAL PROPERTY
14. OTHER (ATTACH LIST)
15. TOTAL STATE AND LOCAL 185,737 22,300 208,037
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16. TOTAL TAXES 217,207 22,300 239,507
- ------------------------------------------ --------------------------- -------------------------------- ------------- ----------
<FN>
* 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.
</FN>
CASE NAME: Alford Refrigerated Warehouses, Inc. ACCRUAL BASIS-5
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CASE NUMBER: 01-39776-BJH-11 MONTH: August, 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 199,299 71,327 40,901
2. ADD: TOTAL DEPOSITS NOT CREDITED
3. SUBTRACT: OUTSTANDING CHECKS 135,212 10,162
4. OTHER RECONCILING ITEMS
5. MONTH END BALANCE PER ITEMS 64,087 61,165 40,901
6. NUMBER OF LAST CHECK WRITTEN 40306 60491 1034
INVESTMENT ACCOUNTS Account #1 Account #2 Account #3
--------------- --------------- ---------------
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: August, 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 285,639 9,830 606,996
2. ADD: TOTAL DEPOSITS NOT CREDITED
3. SUBTRACT: OUTSTANDING CHECKS 337 145,711
4. OTHER RECONCILING ITEMS
5. MONTH END BALANCE PER ITEMS 285,302 9,830 461,285
6. NUMBER OF LAST CHECK WRITTEN 1117 30002
INVESTMENT ACCOUNTS Account #4 Account #5 Account #6
- ------------------------------------------- --------------- --------------- ---------------
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 463,853
CASE NAME: Alford Refrigerated Warehouses, Inc. ACCRUAL BASIS-6
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CASE NUMBER: 01-39776-BJH-11 MONTH: August, 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 9,618 91,560
2.K.R. McGinnis Salary 6,210 75,298
3.J.Y. Robichaud Salary 0 26,000
4.J.C. Williams Travel Expenses 490 490
5.
6. TOTAL PAYMENTS TO INSIDERS 16,318 193,348
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
<FN>
* INCLUDE ALL FEES INCURRED, BOTH APPROVED AND UNAPPROVED
</FN>
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.Tarrant Cty. Tax Assess. 0 45,008 0
2.G.E. Business Asset 23,694 56,952 1,850,035
3.Cadiz Properties, Inc. 154,667 7,744 1,435,814
4.
5.
6. TOTAL PAYMENTS TO PROFESSIONALS 109,704 3,285,849
CASE NAME: Alford Refrigerated Warehouses, Inc. ACCRUAL BASIS-7
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CASE NUMBER: 01-39776-BJH-11 MONTH: August, 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 Scottsdale 08/01/02-08/01/03 $37,154 per year
Commercial Umbrella United National 08/01/02-08/01/03 $16,958 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.
5. The debtor renewed its General Liability insurance in August. The debtor
signed a finance agreement with Premium Financing Specialists, Inc. in the
principal amount of $55,447.99. This agreement runs for a period of nine
months. The court has approved the agreement.