Exhibit #2
UNITED STATES BANKRUPTCY COURT
Southern District of Texas
Houston Division
Case Name: Venturi Technologies, Inc. Petition Date: 02/12/01
Case Number: 01-31442-H4-11
MONTHLY OPERATING REPORT SUMMARY FOR MONTH: MARCH YEAR: 2001
MONTH FEBRUARY MARCH APRIL MAY
- -----------------------------------------------------------------------------------------
REVENUES (MOR-6) 1,191,127 1,379,754
INCOME BEFORE INT, DEPREC./TAX (MOR-6) 41,941 157,387
NET INCOME (LOSS) (MOR-6) (218,311) (74,008)
PAYMENTS TO INSIDERS (MOR-9) 25,035 63,306
PAYMENTS TO PROFESSIONALS (MOR-9) - -
- -----------------------------------------------------------------------------------------
TOTAL DISBURSEMENTS (MOR-8) (1,096,039) (1,258,077)
- -----------------------------------------------------------------------------------------
- -----------------------------------------------------------------------------------------
***The ORIGINAL of this document MUST BE FILED with the United States
Bankruptcy Court and a COPY MUST BE sent to the United States Trustee***
REQUIRED INSURANCE MAINTAINED
AS OF SIGNATURE DATE EXP
DATE
----
CASUALTY 05/04/01
LIABILITY 05/04/01
VEHICLE 05/04/01
WORKER'S 05/04/01
DIRECTORS & OFFICERS 04/09/02
ATTORNEY NAME: EDWARD L. RIPLEY
FIRM: SHEINFELD MALEY & KAY, PC
ADDRESS: 1001 FANNIN, SUITE 3700
CITY, STATE ZIP: HOUSTON, TX 77002
TELEPHONE: 713-754-6354
Are all accounts receivable being collected within terms? YES
Are all post-petition liabilities, including taxes, being
paid within terms? YES
Have any prepetition liabilities been paid? YES
Are all funds received being deposited into DIP bank accounts? NO
Were any assets diposed of outside the normal course of business? NO
Are all U.S. Trustee Quarterly Fee Payments current? YES
What is the status of your Plan of Reorganization? DISCLOSURE STATEMENT HEARING
SCHEDULED FOR MAY 9, 2001
I certify under the penalty of perjury that the following complete
Monthly Operating Report (MOR), consisting of MOR-1 through
MOR-( plus attachments, is true and correct.
SIGNED___________________________________________________
TITLE_____________________________________________________
MOR - 1
Case Name: Venturi Technologies, Inc. Case Number: 01-31442-H4-11
COMPARATIVE BALANCE SHEETS
Filing Date*
ASSETS 02/12/20 FEBRUARY MARCH APRIL MAY
- -----------------------------------------------------------------------------------------------------------------------------
CURRENT ASSETS
Cash 492,715 669,475 801,929
Accounts Receivable, Net 1,187,530 1,204,626 1,241,887
Inventory: Lower of Cost or Market 99,032 222,380 195,411
Prepaid Expenses 17,783 93,773
Investments
Other 40,000 59,852 59,391
- -----------------------------------------------------------------------------------------------------------------------------
TOTAL CURRENT ASSETS 1,819,277 2,174,117 2,392,390
- -----------------------------------------------------------------------------------------------------------------------------
- -----------------------------------------------------------------------------------------------------------------------------
PROPERTY, PLANT & EQUIP, @COST 7,302,015 10,501,955 10,512,584
Less Accumulated Depreciation (4,777,276) (4,987,497) (5,154,733)
NET BOOK VALUE OF PP & E 2,524,739 5,514,458 5,357,851
OTHER ASSETS:
1. Vendor Deposits 52,917 347,762 354,381
2. Deferred Tax Asset (Net) 3,648,000 3,648,000
3. Goodwill (Net) 6,538,698 6,478,728
4.
5.
- -----------------------------------------------------------------------------------------------------------------------------
TOTAL ASSETS 4,396,933 18,223,035 18,231,349
- -----------------------------------------------------------------------------------------------------------------------------
- -----------------------------------------------------------------------------------------------------------------------------
* Per SCHEDULES and STATEMENT OF AFFAIRS
MOR - 2
Case Name: Venturi Technologies, Inc. Case Number: 01-31442-H4-11
COMPARATIVE BALANCE SHEETS
Filing Date*
LIABILITIES & OWNER'S EQUITY 02/12/20 FEBRUARY MARCH APRIL MAY
- --------------------------------------------------------------------------------------------------------------------------
LIABILITIES:
POST-PETITION LIABILITIES (MOR-4) - 544,061 567,410
PRE-PETITION LIABILITIES
Notes Payable Secured ** 9,907,872 9,907,872 9,907,872
Priority Debt *** 519,122 465,923 465,923
Federal Income Tax
FICA/Withholding
Unsecured Debt **** 6,149,673 6,038,148 6,086,279
Other
TOTAL PRE-PETITION LIABILITIES 16,576,667 16,411,943 16,460,074
- --------------------------------------------------------------------------------------------------------------------------
TOTAL LIABILITIES 16,576,667 16,956,004 17,027,484
- --------------------------------------------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------------------------------------------------
OWNER'S EQUITY (DEFICIT):
PREFERRED STOCK 3,408 3,408 3,408
COMMON STOCK 14,869 14,869 14,869
ADDITIONAL PAID-IN CAPITAL 28,588,538 28,588,588 28,588,588
RETAINED EARNINGS: FILING DATE (27,067,803) (27,067,803) (27,067,803)
RETAINED EARNINGS: POST FILING DATE - (218,311) (292,320)
TOTAL OWNER'S EQUITY (NET WORTH) 1,539,012 1,320,751 1,246,742
- --------------------------------------------------------------------------------------------------------------------------
TOTAL LIABILITIES & OWNERS EQUITY 18,115,679 18,276,755 18,274,226
- --------------------------------------------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------------------------------------------------
* Per SCHEDULES and STATEMENT OF AFFAIRS
** Variance is due to Balance Sheet does not reflect accelerated payments
related to CMC Leases. NO PAYMENTS HAVE BEEN MADE TO SECURED CREDITORS
*** Variance is due to Balance Sheet is overaccrued for Various Tax
Obligation. No additional obligations have been incurred or previously
unreported.
****Balance Sheet includes various items that should be expensed. NO PAYMENTS
HAVE BEEN MADE TO PRE-PETITION UNSECURED CREDITORS. (Other than on MOR-1)
MOR - 3
Case Name: Venturi Technologies, Inc. Case Number: 01-31442-H4-11
SCHEDULE OF POST-PETITION LIABILITIES
FEBRUARY MARCH APRIL MAY
- -------------------------------------------------------------------------------------------
TRADE ACCOUNTS PAYABLE 125,011 132,963
TAX PAYABLE
FEDERAL PAYROLL TAXES 22 -
STATE PAYROLL & SALES 25,616 30,266
AD VALOREM
OTHER TAXES
TOTAL TAXES PAYABLE 25,637 30,266
SECURED DEBT POST-PETITION
ACCRUED INTEREST PAYABLE 8,274 8,563
*ACCRUED PROFESSIONAL FEES: 53,700
OTHER ACCRUED LIABILITIES:
1.ACCRUED PAYROLL (INC TAX & WC) 325,917 271,566
2.DEFERRED FINANCE CHARGE INCOME 3,401 (383)
3.ACCRUED INSTALLER SUB CONTRACT 8,435 9,274
4.TELECOMMUNICATION 16,848 18,018
5.OTHER ACCRUED PAYABLE 30,537 43,443
- -------------------------------------------------------------------------------------------
TOTAL POST-PETITION LIABILITIES (MOR-3) 544,061 567,410
- -------------------------------------------------------------------------------------------
- -------------------------------------------------------------------------------------------
* PAYMENT REQUIRES COURT APPROVAL
MOR - 4
Case Name: Venturi Technologies, Inc. Case Number: 01-31442-H4-11
AGING OF POST-PETITION LIABILITIES
March-01
AD-VALOREM,
DAYS TOTAL TRADE ACCTS FED TAXES STATE TAXES OTHER TAXES OTHER ES
- -------------------------------------------------------------------------------------------------------------
0-30 569,140 132,693 - 32,266 - 404,181
31-60
61-90
91+
- -------------------------------------------------------------------------------------------------------------
TOTAL 569,140 132,693 - 32,266 - 404,181
- -------------------------------------------------------------------------------------------------------------
- -------------------------------------------------------------------------------------------------------------
AGING OF ACCOUNTS RECEIVABLE
MONTH FEBRUARY-01 MARCH-01 APRIL-01 MAY-01
- -------------------------------------------------------------------------------------------------------------
0-30 848,739 856,679
31-60 205,350 240,243
61-90 105,916 84,072
91+ 342,944 338,349
- -------------------------------------------------------------------------------------------------------------
TOTAL 1,502,949 1,519,342 - -
- -------------------------------------------------------------------------------------------------------------
- -------------------------------------------------------------------------------------------------------------
MOR - 5
Case Name: Venturi Technologies, Inc. Case Number: 01-31442-H4-11
STATEMENT OF INCOME (LOSS)
MONTH FEBRUARY MARCH FILING TO DATE
- ---------------------------------------------------------------------------------
REVENUE (MOR-1) 1,191,127 1,379,754 2,570,881
TOTAL COST OF REVENUES 570,215 581,176 1,151,390
GROSS PROFIT 620,912 798,579 1,419,490
OPERATING EXPENSES:
Selling & Marketing 33,155 38,458 71,614
General & Administrative 78,573 86,591 165,164
Insiders Compensation 49,129 49,128 98,257
Professional Fees 31,001 52,343 83,344
Other 387,113 414,671 801,784
- ---------------------------------------------------------------------------------
TOTAL OPERATING EXPENSES 578,971 641,191 1,220,162
- ---------------------------------------------------------------------------------
- ---------------------------------------------------------------------------------
INCOME BEFORE INT, DEPR/TAX (MOR-1) 41,941 157,387 199,329
Interest Expense 8,648 9,396 18,044
Depreciation 210,338 171,705 382,043
Amortization of Goodwill 41,266 59,970 101,236
Other (Income) Expense (9,676) (9,676)
Other Items** -
TOTAL INT, DEPR & OTHER ITEMS 260,252 231,396 491,648
NET INCOME BEFORE TAXES (218,311) (74,008) (292,319)
- ---------------------------------------------------------------------------------
FEDERAL INCOME TAXES
- ---------------------------------------------------------------------------------
NET INCOME (LOSS) (MOR-1) (218,311) (74,008) (292,319)
- ---------------------------------------------------------------------------------
- ---------------------------------------------------------------------------------
MOR - 6
Case Name: Venturi Technologies, Inc. Case Number: 01-31442-H4-11
CASH RECEIPTS AND DISBURSEMENTS FEBRUARY MARCH APRIL MAY FILING TO DATE
- ------------------------------------------------------------------------------------------------------------------
1. CASH - BEGINNING OF THE MONTH 549,194 664,509
RECEIPTS:
2. CASH SALES 325,010 290,519 615,529
3. COLLECTION OF ACCOUNTS RECEIVABLE 856,453 1,013,599 1,870,052
4. LOANS & ADVANCES -
5. SALES OF ASSETS 2,584 2,584
6. OTHER 30,304 84,680 114,984
TOTAL RECEIPTS 1,214,351 1,388,798 - - 2,603,149
(WITHDRAWAL) CONTRIBUTION BY INDIVIDUAL
DEBTOR MFR-2*
DISBURSEMENTS:
7. NET PAYROLL 657,997 630,856 1,288,853
8. PAYROLL TAXES PAID 75,948 77,229 153,177
9. SALES, USE & OTHER TAXES PAID 24,502 14,033 38,535
10. SECURED/ RENTAL LEASES 47,191 47,230 94,421
11. UTILITIES 33,020 57,608 90,628
12. INSURANCE - 32,058 32,058
13. INVENTORY PURCHASES 88,020 72,089 160,109
14. VEHICLE EXPENSES 31,619 81,272 112,891
15. TRAVEL & ENTERTAINMENT 27,957 20,892 48,849
16. REPAIRS, MAINTENANCE & SUPPLIES 8,632 54,193 62,825
17. ADMINISTRATIVE & SELLING 40,033 115,244 155,277
18. OTHER (ATTACH LIST) ** 32,012 55,373 87,385
TOTAL DISBURSEMENTS FROM OPERATIONS 1,066,932 1,258,077 - - 2,325,009
19. PROFESSIONAL FEES 32,105 32,105
20. U.S. TRUSTEE FEES - -
21. OTHER REORGANIZATION EXPENSES (ATTACH LIST) - -
TOTAL DISBURSEMENTS 1,099,037 1,258,077 - - 2,357,114
22. NET CASH FLOW 115,315 130,721 - - 246,036
23. CASH - END OF MONTH (MOR-2) 664,509 795,230 - -
- ------------------------------------------------------------------------------------------------------------------
* Applies to Individual debtors only
February March
** Carpet Installer Sub Contractor Payments $ 32,012 $ 32,195
Interest Payment - Compass Bank $ - $ 23,178
MOR - 7
Case Name: Venturi Technologies, Inc. Case Number: 01-31442-H4-11
CASH ACCOUNT RECONCILIATION
MARCH-01
COLORADO COLORADO BANK OF
BUSINESS BUSINESS COMPASS BRIGHTON AMERICAN
BANK NAME BANK BANK BANK BANK FORK
- --------------------------------------------------------------------------------------------------------------------
ACCOUNT NUMBER
- --------------------------------------------------------------------------------------------------------------------
ACCOUNT TYPE OPERATING OPERATING OPERATING TRUST OPERATING TOTAL
- --------------------------------------------------------------------------------------------------------------------
BANK BALANCE 502,906 66,398 76,791 195,816 841,911
DEPOSIT IN TRANSIT 126,478 126,478
OUTSTANDING CHECKS (173,159) (173,159)
ADJUSTED BANK BALANCE 456,225 66,398 76,791 195,816 - 795,230
- --------------------------------------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------------------------------------------
BEGINNING CASH - PER BOOKS 309,622 59,102 99,969 195,816 664,509
RECEIPTS 1,313,939 74,859 1,388,798
TRANSFERS BETWEEN ACCOUNTS 65,000 (65,000) -
(WITHDRAWAL)CONTRIBUTION BY
INDIVIDUAL DEBTOR MFR -2 -
CHECKS/OTHER DISBURSEMENTS (1,232,336) (2,563) (23,178) (1,258,077)
ENDING CASH - PER BOOKS 456,225 66,398 76,791 195,816 - 795,230
- --------------------------------------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------------------------------------------
MOR - 8
Case Name: Venturi Technologies, Inc. Case Number: 01-31442-H4-11
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 the Professional. Also, for insiders identify the type of compensation
paid (e.g., salary, commission, bonus, etc.) (Attach additional pages as
necessary.)
FEBRUARY FEBRUARY
PAYMENTS MADE PAYMENTS MADE
INSIDERS: NAME/POSITION/COMP TYPE PRE-PETITION POST-PETITION MARCH
- -------------------------------------------------------------------------------------------------------------------------
1. Michael Dougherty - CEO - Salary 5,769 5,769 11,538
2. Michael Dougherty - CEO - Expense Reimbursement 12,065 -
3. Mitchell Martin - COO - Salary 5,045 5,045 10,090
4. Mitchell Martin - COO - Expense Reimbursement 12,162 471 8,362
5. Stephen Abate - CFO - Salary 3,750 3,750 7,500
6. Stephen Abate - CFO - Expense Reimbursement 3,259 - 4,345
7. Pamela Miller - Controller - Salary 3,269 3,269 6,538
8. Pamela Miller - Controller - Expense Reimbursement 565 - 788
9. Lloyd Peterman - VP Sales & Install - Salary 6,731 6,731 13,462
10. Lloyd Peterman - VP Sales & Install - Exp Reimbur. - - 683
- -------------------------------------------------------------------------------------------------------------------------
TOTAL INSIDERS (MOR-1) 52,616 25,035 63,306
- -------------------------------------------------------------------------------------------------------------------------
- -------------------------------------------------------------------------------------------------------------------------
FEBRUARY FEBRUARY
PAYMENTS MADE PAYMENTS MADE
PROFESSIONALS NAME/ORDER DATE PRE-PETITION POST-PETITION MARCH
- -------------------------------------------------------------------------------------------------------------------------
Sheinfeld, Maley & Kay Disbursed February 7, 2001 25,000 - -
Turpin & Associates Disbursed February 1, 2001 7,105 - -
- -------------------------------------------------------------------------------------------------------------------------
TOTAL PROFESSIONALS (MOR-1) 32,105 - -
- -------------------------------------------------------------------------------------------------------------------------
- -------------------------------------------------------------------------------------------------------------------------
MOR- 9