Exhibit #1
UNITED STATES BANKRUPCY 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: JUNE YEAR: 2001
MONTH FEBRUARY MARCH APRIL MAY JUNE
---------- ---------- ---------- ---------- ----------
REVENUES (MOR-6) 1,191,127 1,379,754 1,329,215 1,533,403 1,656,598
INCOME BEFORE INT, DEPREC./TAX (MOR-6) 41,941 157,387 (234,742) (115,288) 23,254
NET INCOME (LOSS) (MOR-6) (218,311) (74,008) (496,881) (390,863) (246,863)
PAYMENTS TO INSIDERS (MOR-9) 25,035 62,891 62,532 94,001 82,742
PAYMENTS TO PROFESSIONALS (MOR-9) -- -- 1,881 25,000 --
TOTAL DISBURSEMENTS (MOR-8) (1,096,039) (1,258,077) (1,544,623) (2,033,224) (1,503,934)
***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 05/05/02
LIABILITY 05/05/02
VEHICLE 05/05/02
WORKER'S 05/05/02
DIRECTORS & OFFICERS 04/09/02
ATTORNEY NAME: EDWARD L. RIPLEY
FIRM: BAKER & HOSTETLER, LLP
ADDRESS: 1000 LOUISIANA, SUITE 200
CITY, STATE ZIP: HOUSTON, TX 77002
TELEPHONE: 713-646-1349
Are all accounts receivable being collected within terms? YES
Are all post-petion liabiliities, including taxes, being paid within terms? YES
Have any prepetition liabilities been paid? YES
ACCRUED PAYROLL, EMPLOYEE EXPENSES & SALES AND USE TAX
Are all funds received being deposited into DIP bank accounts? YES
Were any assets diposed of outside the normal course of business? NO
Are all U.S. Trustee Quarterlly Fee Payments current? YES
What is the status of your Plan of Reorganization? CONFIRMATION HEARING
SCHEDULED FOR AUGUST 1, 2001
I certify under the penalty of perjury that the following
complete Mpnthly Operating Report (MOR), consisting of MOR-1
through MOR-( plus attachements, 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 02/12/2001 FEBRUARY MARCH APRIL MAY JUNE
------------ ---------- ---------- ---------- ---------- ----------
CURRENT ASSETS
Cash 492,715 669,475 801,929 1,463,887 769,391 877,263
Accounts Receivable, Net 1,187,530 1,204,626 1,241,887 1,380,594 1,578,956 1,626,169
Inventory: Lower of Cost or Market 99,032 222,380 195,411 217,751 181,721 193,555
Prepaid Expenses 17,783 93,773 142,500 261,321 313,665
Investments
Other 40,000 59,852 59,391 59,160 59,160 59,160
TOTAL CURRENT ASSETS 1,819,277 2,174,117 2,392,390 3,263,891 2,850,549 3,069,811
PROPERTY, PLANT & EQUIP, @COST 7,302,015 10,501,955 10,512,584 10,513,083 10,518,721 10,542,444
Less Accumulated Depreciation (4,777,276) (4,987,497) (5,154,733) (5,365,167) (5,575,828) (5,786,866)
NET BOOK VALUE OF PP & E 2,524,739 5,514,458 5,357,851 5,147,916 4,942,893 4,755,578
OTHER ASSETS:
1. Vendor Deposits 52,917 347,762 354,381 359,972 364,321 370,080
2. Deferred Tax Asset (Net) 3,648,000 3,648,000 3,648,000 3,648,000 3,648,000
3. Goodwill (Net) 6,538,698 6,478,728 6,437,462 6,396,196 6,354,930
4.
5.
TOTAL ASSETS 4,396,933 18,223,035 18,231,349 18,857,241 18,201,959 18,198,399
* 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 02/12/2001 FEBRUARY MARCH APRIL MAY JUNE
----------- ----------- ----------- ----------- ----------- -----------
LIABILITIES:
POST-PETITION LIABILITIES (MOR-4) -- 544,061 567,410 2,761,688 2,497,873 2,741,488
PRE-PETITION LIABILITIES
Notes Payable Secured ** 9,907,872 9,641,948 9,641,948 8,573,752 8,573,148 8,572,838
Priority Debt *** 519,122 666,709 666,709 666,709 666,709 666,709
Federal Income Tax
FICA/Withholding
Unsecured Debt **** 6,149,673 6,057,189 6,105,230 6,105,230 6,105,230 6,105,230
Other
TOTAL PRE-PETITION LIABILITIES 16,576,667 16,365,846 16,413,887 15,345,691 15,345,087 15,344,777
TOTAL LIABILITIES 16,576,667 16,909,907 16,981,297 18,107,379 17,842,960 18,086,265
OWNER'S EQUITY (DEFICIT):
PREFERRED STOCK 3,408 3,408 3,408 3,408 3,408 3,408
COMMON STOCK 14,869 14,869 14,869 14,869 14,869 14,869
ADDITIONAL PAID-IN CAPITAL 28,588,538 28,588,588 28,588,588 28,588,588 28,588,588 28,588,588
RETAINED EARNINGS: FILING DATE (27,067,803) (27,067,803) (27,067,803) (27,067,803) (27,067,803) (27,067,803)
RETAINED EARNINGS: POST FILING DATE -- (218,311) (292,320) (789,200) (1,180,063) (1,426,928)
TOTAL OWNER'S EQUITY (NET WORTH) 1,539,012 1,320,751 1,246,742 749,862 358,999 112,134
TOTAL LIABILITIES & OWNERS EQUITY 18,115,679 18,230,658 18,228,039 18,857,241 18,201,959 18,198,399
* Per SCHEDULES and STATEMENT OF AFFAIRS
MOR - 3
** Variance between Filing date and February 28 is due to Balance Sheet does
not reflect accelerated payments related to CMC Leases. NO PAYMENTS HAVE
BEEN MADE TO SECURED CREDITORS.
Decrease in April due to pay off of Compass Bank Commercial Revolver Note
as allowed by the DIP Financing agreement approved by US Bankruptcy Court.
*** Variance between filing date and February 28 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)
CASE NAME: VENTURI TECHNOLOGIES, INC. CASE NUMBER: 01-31442-H4-11
SCHEDULE OF POST-PETITION LIABILITIES
FEBRUARY MARCH APRIL MAY JUNE
-------- ------- --------- --------- ---------
TRADE ACCOUNTS PAYABLE 125,011 132,963 101,509 81,614 158,864
TAX PAYABLE
FEDERAL PAYROLL TAXES 22 -- 0
STATE PAYROLL & SALES 25,616 30,266 29,331 27,344 33,274
AD VALOREM
OTHER TAXES
TOTAL TAXES PAYABLE 25,637 30,266 29,331 27,344 33,274
SECURED DEBT POST-PETITION
ACCRUED INTEREST PAYABLE 8,274 8,563 23,414 40,695
*ACCRUED PROFESSIONAL FEES: 53,700 90,000 106,297 131,000
OTHER ACCRUED LIABILITES:
1. ACCRUED PAYROLL (INC TAX & WC) 325,917 271,566 476,390 200,438 273,532
2. DEFERRED FINANCE CHARGE INCOME 3,401 (383) 7,753 5,174 6,621
3. ACCRUED INSTALLER SUB CONTRACT 8,435 9,274 11,661 18,695 7,554
4. TELECOMMUNICATION 16,848 18,018 26,015 19,809 23,077
5. OTHER ACCRUED PAYABLE 30,537 43,443 69,029 40,088 91,871
NOTE PAYABLE DIP FINANCING 1,950,000 1,975,000 1,975,000
TOTAL POST-PETITION LIABILITIES (MOR-3) 544,061 567,410 2,761,688 2,497,873 2,741,488
* PAYMENT REQUIRES COURT APPROVAL
MOR - 4
CASE NAME: VENTURI TECHNOLOGIES, INC. CASE NUMBER: 01-31442-H4-11
AGING OF POST-PETITION LIABILITIES
June-01
AD-VALOREM,
DAYS TOTAL TRADE ACCTS FED TAXES STATE TAXES OTHER TAXES OTHER
- ------ --------- ----------- --------- ----------- ----------- ------
0-30 2,741,488 158,864 -- -- -- 272,556
31-60
61-90
91+
TOTAL 2,741,488 158,864 -- -- -- 272,556
AGING OF ACCOUNTS RECEIVABLE
MONTH FEBRUARY-01 MARCH-01 APRIL-01 MAY-01 JUNE-01
- ------ ----------- ----------- ---------- ---------- ----------
0-30 848,739 856,679 851,955 1,011,969 1,098,340
31-60 205,350 240,243 324,512 301,916 306,268
61-90 105,916 84,072 134,281 173,686 137,350
91+ 342,944 338,349 325,171 380,356 383,668
TOTAL 1,502,949 1,519,342 1,635,919 1,867,927 1,925,626
MOR - 5
CASE NAME: VENTURI TECHNOLOGIES, INC. CASE NUMBER: 01-31442-H4-11
STATEMENT OF INCOME (LOSS)
MONTH FEBRUARY MARCH APRIL MAY JUNE FILING TO DATE
----- --------- --------- --------- --------- --------- --------------
REVENUE (MOR-1) 1,191,127 1,379,754 1,329,215 1,533,403 1,656,598 7,090,097
TOTAL COST OF REVENUES 570,215 581,176 796,108 815,188 809,173 3,571,859
GROSS PROFIT 620,912 798,579 533,107 718,215 847,426 3,518,237
OPERATING EXPENSES:
Selling & Marketing 33,155 38,458 30,133 33,493 46,057 181,296
General & Administrative 78,573 86,591 154,647 166,407 177,830 664,047
Insiders Compensation 49,129 49,128 49,128 49,128 49,128 245,641
Professional Fees 31,001 52,343 48,495 56,843 31,666 220,349
Other 387,113 414,671 485,446 527,632 519,491 2,334,353
TOTAL OPERATING EXPENSES 578,971 641,191 767,849 833,503 824,172 3,645,686
INCOME BEFORE INT, DEPR/TAX (MOR-1) 41,941 157,387 (234,742) (115,288) 23,254 (127,448)
Interest Expense 8,648 9,396 10,322 23,649 17,813 69,828
Depreciation 210,338 171,705 210,552 210,660 211,038 1,014,293
Amortization of Goodwill 41,266 59,970 41,266 41,266 41,266 225,033
Other (Income) Expense (9,676) (9,676)
Other Items** --
TOTAL INT, DEPR & OTHER ITEMS 260,252 231,396 262,139 275,575 270,117 1,299,479
NET INCOME BEFORE TAXES (218,311) (74,008) (496,881) (390,863) (246,863) (1,426,927)
FEDERAL INCOME TAXES
NET INCOME (LOSS) (MOR-1) (218,311) (74,008) (496,881) (390,863) (246,863) (1,426,927)
MOR - 6
CASE NAME: VENTURI TECHNOLOGIES, INC. CASE NUMBER: 01-31442-H4-11
CASH RECEIPTS AND DISBURSEMENTS FEBRUARY MARCH APRIL MAY JUNE FILING TO DATE
--------- --------- --------- --------- --------- --------------
1. CASH - BEGINNING OF THE MONTH 549,194 664,509 795,230 1,442,455 762,715
RECEIPTS:
2. CASH SALES 325,010 290,519 378,611 400,616 423,953 1,818,709
3. COLLECTION OF ACCOUNTS RECEIVABLE 856,453 1,013,599 842,298 921,180 1,179,110 4,812,640
4. LOANS & ADVANCES --
5. SALES OF ASSETS 2,584 500 3,084
6. OTHER 30,304 84,680 970,439 31,688 9,348 1,126,459
TOTAL RECEIPTS 1,214,351 1,388,798 2,191,848 1,353,484 1,612,411 7,760,892
(WITHDRAWAL)CONTRIBUTION BY INDIVIDUAL
DEBTOR MFR-2*
DISBURSEMENTS:
7. NET PAYROLL 657,997 630,856 706,663 1,105,721 741,902 3,843,139
8. PAYROLL TAXES PAID 75,948 77,229 79,744 116,523 80,369 429,813
9. SALES, USE & OTHER TAXES PAID 24,502 14,033 44,518 32,673 32,023 147,749
10. SECURED/ RENTAL LEASES 47,191 47,230 54,080 49,596 54,127 252,224
11. UTILITIES 33,020 57,608 60,464 63,998 45,606 260,696
12. INSURANCE -- 32,058 144,988 187,138 97,993 462,177
13. INVENTORY PURCHASES 88,020 72,089 96,936 120,363 128,788 506,196
14. VEHICLE EXPENSES 31,619 81,272 88,095 106,328 102,332 409,646
15. TRAVEL & ENTERTAINMENT 27,957 20,892 16,641 22,491 26,491 114,472
16. REPAIRS, MAINTENANCE & SUPPLIES 8,632 54,193 41,556 60,291 25,689 190,361
17. ADMINISTRATIVE & SELLING 40,033 115,244 105,112 100,336 117,092 477,817
18. OTHER (ATTACH LIST) ** 32,012 55,373 92,536 40,992 51,522 272,435
TOTAL DISBURSEMENTS FROM OPERATIONS 1,066,932 1,258,077 1,531,333 2,006,450 1,503,934 7,366,725
19. PROFESSIONAL FEES 32,105 1,881 26,774 60,760
20. U.S. TRUSTEE FEES -- 7,500 7,500
21. OTHER REORGANIZATION EXPENSES
(ATTACH LIST) -- 3,909 3,909
TOTAL DISBURSEMENTS 1,099,037 1,258,077 1,544,623 2,033,224 1,503,934 7,438,894
22. NET CASH FLOW 115,315 130,721 647,225 (679,740) 108,477 321,998
23. CASH - END OF MONTH (MOR-2) 664,509 795,230 1,442,455 762,715 871,192 --
MOR - 7
*Applies to Individual debtors only
February March April May
** Carpet Installer Sub Contractor Payments $ 32,012 $ 32,195 $ 27,124 $ 40,992
Interest Payment - Compass Bank $ -- $ 23,178 $ 12,252
Principal Payment Compass Bank Revolver $ 72,115
CASE NAME: VENTURI TECHNOLOGIES, INC. CASE NUMBER: 01-31442-H4-11
CASH ACCOUNT RECONCILIATION
JUNE-01
BANK NAME COLORADO COLORADO COMPASS BRIGHTON COMPASS COMPASS
BUSINESS BUSINESS BANK BANK BANK BANK
BANK BANK HOUSTON DENVER DENVER
-------- -------- ------- -------- --------- ----------
ACCOUNT NUMBER
ACCOUNT TYPE OPERATING OPERATING OPERATING TRUST OPERATING OPERATING TOTAL
--------- --------- --------- -------- --------- ---------- ----------
BANK BALANCE 32,209 7,652 733 195,816 74,843 566,737 877,991
DEPOSIT IN TRANSIT -- 5,699 198,912 204,611
OUTSTANDING CHECKS (29,658) (2,039) (179,712) (211,409)
ADJUSTED BANK BALANCE 2,551 5,613 733 195,816 80,542 585,937 871,193
BEGINNING CASH - PER BOOKS 72,952 16,269 735 195,816 -- 476,943 762,715
RECEIPTS 1,599 14,344 80,542 1,515,926 1,612,411
TRANSFERS BETWEEN ACCOUNTS (72,000) (25,000) 97,000 --
(WITHDRAWAL)CONTRIBUTION BY
INDIVIDUAL DEBTOR MFR -2 -- --
CHECKS/OTHER DISBURSEMENTS (2) (1,503,932) (1,503,934)
ENDING CASH - PER BOOKS 2,551 5,613 733 195,816 80,542 585,937 871,192
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
INSIDERS: NAME/POSITION/COMP TYPE PAYMENTS MADE PAYMENTS MADE MARCH APRIL MAY JUNE
PRE-PETITION POST-PETITION
--------------------------------- ------------- ------------- ------- ------- ------- -------
1. Michael Dougherty - CEO - Salary 5,769 5,769 11,538 11,538 17,307 11,538
2. Michael Dougherty - CEO - Expense Reimbursement 12,065 -- 5,841 5,003 4,172
3. Mitchell Martin - COO - Salary 5,045 5,045 10,090 10,090 15,135 10,090
4. Mitchell Martin - COO - Expense Reimbursement 12,162 471 8,362 5,945 11,542 25,452
5. Stephen Abate - CFO - Salary 3,750 3,750 7,500 7,500 11,250 7,500
6. Stephen Abate - CFO - Expense Reimbursement 3,259 -- 4,345 3,107 2,397
7. Pamela Miller - Controller - Salary 3,269 3,269 6,538 6,538 9,807 6,538
8. Pamela Miller - Controller - Expense Reimbursement 565 -- 788 -- --
9. Lloyd Peterman - VP Sales & Install - Salary 6,731 6,731 13,462 13,462 20,193 13,462
10. Lloyd Peterman - VP Sales & Install - Exp Reimbur -- -- 268 1,618 657 1,593
TOTAL INSIDERS (MOR-1) 52,616 25,035 62,891 62,532 94,001 82,742
FEBRUARY FEBRUARY
PROFESSIONALS NAME/ORDER DATE PAYMENTS MADE PAYMENTS MADE MARCH APRIL MAY JUNE
PRE-PETITION POST-PETITION
----------------------------- ------------- ------------- ------- ------- ------- -------
Sheinfeld, Maley & Kay Disbursed February 7, 2001 25,000 -- -- --
Turpin & Associates Disbursed February 1, 2001 7,105 -- -- 1,881
Gardere Wynne Sewell L.L.P 25,000
TOTAL PROFESSIONALS (MOR-1) 32,105 -- -- 1,881 25,000 --
MOR- 9