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: OCTOBER 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 November 19, 2002
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PRINTED NAME OF RESPONSIBLE PARTY DATE
PREPARER:
Chief Fianacial Officer
- ---------------------------------------- --------------------------------
ORIGINAL SIGNATURE OF PREPARER TITLE
James C. Williams November 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
Oct. 2002
- -------------------------------------- ---------------------- ------------------ --------------------- ---------------------
1. UNRESTRICTED CASH 397,143
2. RESTRICTED CASH
3. TOTAL CASH 397,143
4. ACCOUNTS RECEIVABLE, NET 518,127
- -------------------------------------- ---------------------- ------------------ --------------------- ---------------------
5. INVENTORY
6. NOTES RECEIVABLE
7. PREPAID EXPENSES 265,350
8. OTHER (ATTACH LIST)
9. TOTAL CURRENT ASSETS 1,180,620
- -------------------------------------- ---------------------- ------------------ --------------------- ---------------------
10. PROPERTY, PLANT, & EQUIPMENT 7,579,059
11. LESS:ACCUMULATED 3,330,849
DEPRECIATION/DEPLETION
12. NET PROPERTY, PLANT & EQUIPMENT 4,248,210
- -------------------------------------- ---------------------- ------------------ --------------------- ---------------------
13. DUE FROM INSIDERS (1,461,925)
14. OTHER ASSETS - NET OF 237,244
15. OTHER (ATTACH LIST) 179,796
16. TOTAL ASSETS 4,383,945
- -------------------------------------- ---------------------- ------------------ --------------------- ---------------------
POST PETITION LIABILITIES
17. ACCOUNTS PAYABLE 607,832
18. TAXES PAYABLE 284,107
19. NOTES PAYABLE 152,865
20. PROFESSIONAL FEES
21. SECURED DEBT
22. OTHER (ATTACH LIST) 4,611
23. TOTAL POSTPETITION LIABILITIES 1,049,415
- -------------------------------------- ---------------------- ------------------ --------------------- ---------------------
PREPETITION LIABILITIES
24. SECURED DEBT 4,555,143
25. PRIORITY DEBT 60,090
26. UNSECURED DEBT 3,087,862
27. OTHER (ATTACH LIST) 839,848
28. TOTAL PREPETITION LIABILITIES 8,542,943
29. TOTAL LIABILITIES 9,592,358
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EQUITY
30. PREPETITION OWNER'S EQUITY (2,726,032)
31. POSTPETITION CUMULATIVE PROFIT OR (2,482,381)
(LOSS)
32. DIRECT CHARGES TO EQUITY
33. TOTAL EQUITY (5,208,413)
- -------------------------------------- ---------------------- ------------------ --------------------- ---------------------
34. TOTAL LIABILITIES & OWNERS' EQUITY 4,383,945
Case Name: Alford Refrigerated Warehouses, Inc. MOR-1
Case No: 01-39776-BJH-11
Oct '02
14. Capitalized Professional Fees $ 237,244
net of Amortization
15. Investment in Subsidiaries $ 10
Deposits 179,786
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$ 179,796
22. Deferred Revenue $ 4,611
27. Deferred Income Taxes $ 697,039
Deferred Revenue 142,809
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$ 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
October, 2002
1. GROSS REVENUES 474,006
2. LESS: RETURNS & DISCOUNTS
3. NET REVENUE 474,006
COSTS OF GOODS SOLD
4. MATERIAL
5. DIRECT LABOR
6. DIRECT OVERHEAD
7. TOTAL COST OF GOODS SOLD
8. GROSS PROFIT 474,006
OPERATING EXPENSES
9. OFFICER / INSIDER COMPENSATION 16,614
10. SELLING & MARKETING
11. GENERAL & ADMINISTRATIVE 414,209
12. RENT & LEASE 154,667
13. OTHER (ATTACH LIST)
14. TOTAL OPERATING EXPENSES 585,490
15. INCOME BEFORE NON-OPERATING (111,484)
INCOME & EXPENSE
OTHER INCOME & EXPENSE
16. NON-OPERATING INCOME (ATTACH LIST)
17. NON-OPERATING EXPENSE (ATTACH LIST)
18. INTEREST EXPENSE 16,263
19. DEPRECIATION / DEPLETION 36,765
20. AMORITIZATION 2,789
21. OTHER (ATTACH LIST)
22. NET OTHER INCOME & EXPENSES 55,817
REORGANIZATION EXPENSES
23. PROFESSIONAL FEES
24. U.S. TRUSTEE FEES 3,750
25. OTHER (ATTACH LIST)
26. TOTAL REORGANIZATION EXPENSES 3,750
27. INCOME TAX
28. NET PROFIT (LOSS) (171,051)
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
October, 2002
1. CASH - BEGINNING OF MONTH 424,360 424,360
RECEIPTS FROM OPERATORS
2. CASH SALES 3,748 3,748
COLLECTIONS OF ACCOUNTS RECEIVABLE
3. PREPETITION 623 623
4. POSTPETITION 456,096 456,096
5. TOTAL OPERATING RECEIPTS 456,719 456,719
NON-OPERATING RECEIPTS
6. LOANS & ADVANCES (ATTACH LIST)
7. SALE OF ASSETS
8. OTHER (ATTACH LIST) 8,119 8,119
9. TOTAL NON-OPERATING RECEIPTS 8,119 8,119
10. TOTAL RECEIPTS 468,586 468,586
11. TOTAL CASH AVAILABLE 892,946 892,946
OPERATING DISBURSEMENTS
12. NET PAYROLL 112,807 112,807
13. PAYROLL TAXES PAID 41,656 41,656
14. SALES, USE & OTHER TAXES PAID
15. SECURED / RENTAL / LEASE 23,694 23,694
16. UTILITIES 198,790 198,790
17. INSURANCE 44,281 44,281
18. INVENTORY PURCHASES
19. VEHICLE EXPENSES
20. TRAVEL 1,831 1,831
21. ENTERTAINMENT
22. REPAIRS & MAINTENANCE 35,165 35,165
23. SUPPLIES 2,568 2,568
24. ADVERTISING
25. OTHER (ATTACH LIST) 31,011 31,011
26. TOTAL OPERATING DISBURSEMENTS 491,803 491,803
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 495,803 495,803
32. NET CASH FLOW (495,803) (495,803)
33. CASH - END OF MONTH 397,143 397,143
Case Name: Alford Refrigerated Warehouses, Inc. MOR-3
Case No: 01-39776-BJH-11
Oct '02
8. Repayment of inter-co rent, by court order $ 8,119
25. Bank Charges $ 349
Licenses & Fees 29
Employee withholdings for Child Support,
Irs Levy, 401(K), Credit Union,
Medical Premiums 30,633
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$31,011
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
October, 2002
1. 0 - 30 296,290
2. 31 - 60 56,045
3. 61 - 90 23,215
4. 91 + 52,020
5. TOTAL ACCOUNTS RECEIVABLE 427,570
6. AMOUNT CONSIDERED UNCOLLECTABLE
7. ACCOUNTS RECEIVABLE, NET 427,570
AGING OF POSTPETITION TAXES AND PAYABLES MONTH: October, 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 22,300 185,737 252,637
4. OTHER (ATTACH LIST)
5. TOTAL TAXES PAYABLE 22,300 22,300 22,300 217,207 284,107
6. ACCOUNTS PAYABLE 42,144 176 0 2,977 45,297
STATUS OF POSTPETITION TAXES MONTH: October, 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 230,337 22,300 252,637
13. PERSONAL PROPERTY
14. OTHER (ATTACH LIST)
15. TOTAL STATE AND LOCAL 230,337 22,300 252,637
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16. TOTAL TAXES 261,807 22,300 284,107
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<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: October, 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 140,586 36,315 614
2. ADD: TOTAL DEPOSITS NOT CREDITED
3. SUBTRACT: OUTSTANDING CHECKS 140,212 32,017
4. OTHER RECONCILING ITEMS
5. MONTH END BALANCE PER ITEMS 374 4,298 614
6. NUMBER OF LAST CHECK WRITTEN 40312 60682 1035
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: October, 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 444,149 821 622,485
2. ADD: TOTAL DEPOSITS NOT CREDITED
3. SUBTRACT: OUTSTANDING CHECKS 55,681 227,910
4. OTHER RECONCILING ITEMS
5. MONTH END BALANCE PER ITEMS 388,468 821 394,575
6. NUMBER OF LAST CHECK WRITTEN 1153 30003
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 397,143
CASE NAME: Alford Refrigerated Warehouses, Inc. ACCRUAL BASIS-6
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CASE NUMBER: 01-39776-BJH-11 MONTH: October, 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 8,168 109,524
2.K.R. McGinnis Salary 8,446 91,391
3.J.Y. Robichaud Salary 0 26,000
4.J.C. Williams Travel Expenses 1,624 3,064
5.J.Y. Robichaud Travel Expenses 5,000 12,602
6. TOTAL PAYMENTS TO INSIDERS 23,238 242,581
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.G.E. Business Asset 23,694 23,694 1,832,855
2.Cadiz Properties, Inc. 154,667 0 1,737,029
3.
4.
5.
6. TOTAL PAYMENTS TO PROFESSIONALS 23,694 3,569,884
CASE NAME: Alford Refrigerated Warehouses, Inc. ACCRUAL BASIS-7
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CASE NUMBER: 01-39776-BJH-11 MONTH: October, 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 Arch Specialty Insuranc 09/12/02-09/12/03 $90,170 per year
Case Name: Alford Refrigerated Warehouses, Inc. MOR-7
Case No: 01-39776-BJH-11
4. Payments have been made for long term secured debt. Payments are detailed on
MOR-6.