EXHIBIT 99.1
1
IN THE UNITED STATES BANKRUPTCY COURT
FOR THE NORTHERN DISTRICT OF GEORGIA
NEWNAN DIVISION
In re: ) Chapter 11
)
DAN RIVER INC. ) Case No. 04-10990
)
Debtor. ) Judge Drake
)
DEBTOR'S MONTHLY FINANCIAL REPORTS (BUSINESS)
FOR THE PERIOD FROM JUNE 6, 2004 TO JULY 3, 2004
------------------------------------------------
Comes now the above-named debtor and files its Periodic Financial
Reports in accordance with the Guidelines established by the
United States Trustee and FRBP 2015.
/s/ Jonathan W. Jordan
----------------------
Attorney for Debtor
Dated: Atlanta, GA
August 2, 2004
Debtor's Address and
Phone Number: KING & SPALDING LLP
2291 Memorial Drive James A. Pardo, Jr.
Danville, VA 24541 Georgia Bar No. 561206
(434) 799-7000 Sara Robinson Borders
Georgia Bar No. 610649
191 Peachtree Street
Atlanta, GA 30303-1763
(404) 572-4600
ATTORNEYS FOR THE DEBTOR
2
IN THE UNITED STATES BANKRUPTCY COURT
FOR THE NORTHERN DISTRICT OF GEORGIA
NEWNAN DIVISION
In re: ) Chapter 11
)
DAN RIVER INC. ) Case No. 04-10990
)
Debtor. ) Judge Drake
)
DEBTOR'S MONTHLY FINANCIAL REPORTS (BUSINESS)
FOR THE PERIOD FROM JUNE 6, 2004 TO JULY 3, 2004
-------------------------------------------------
NOTES TO THE MONTHLY OPERATING REPORT
Total Cash Disbursements During The Reporting Period: $38,080,000
I declare under penalty of perjury that this statement and the
accompanying documents and reports are true and correct to the
best of my knowledge and belief.
This 2nd day of August 2004. /s/ Barry F. Shea
---------------------------
Barry F. Shea
Executive Vice President-Chief
Financial Officer
3
In re: DAN RIVER INC.
Case No. 04-10990
CONDENSED BALANCE SHEET
(UNAUDITED)
July 3, 2004
(in thousands)
Assets
Current assets:
Cash and cash equivalents $ 1,627
Accounts receivable (less allowances of $9,279) 56,708
Inventories 135,572
Assets held for sale 5,735
Prepaid expenses and other current assets 8,941
Deferred income taxes 7,024
--------
Total current assets 215,607
Property, plant and equipment 438,355
Less accumulated depreciation and amortization (270,283)
--------
Net property, plant and equipment 168,072
Investment and advances to subsidiaries 8,227
Other assets 8,663
--------
$ 400,569
=========
4
In re: DAN RIVER INC.
Case No. 04-10990
CONDENSED BALANCE SHEET
(UNAUDITED)
July 3, 2004
(in thousands)
Liabilities and Shareholders' Equity
Current liabilities:
Long-term debt currently due $ 106,843
Accounts payable 8,615
Due to subsidiaries 4,274
Accrued compensation and related benefits 17,602
Other accrued expenses 9,816
---------
Total current liabilities 147,150
Deferred income taxes 7,024
Other liabilities 22,396
---------
Total liabilities not subject to compromise 176,570
Liabilities subject to compromise 193,071
Shareholders' equity:
Common stock 225
Additional paid-in capital 210,147
Accumulated deficit (167,990)
Accumulated other comprehensive loss (11,204)
Unearned compensation - restricted stock (250)
---------
Total shareholders' equity 30,928
---------
$ 400,569
==========
5
In re: DAN RIVER INC.
Case No. 04-10990
CONDENSED STATEMENT OF OPERATIONS
(UNAUDITED)
For the Period June 6, 2004 to July 3, 2004
(in thousands)
Net sales $ 33,584
Cost of sales 34,465
---------
Gross profit (881)
Selling, general and administrative expenses 3,054
Other operating costs, net (A) 4,492
Operating loss (8,427)
Other income, net 21
Interest expense (824)
Equity in loss of subsidiaries (4,841)
---------
Loss before reorganization items (14,071)
Reorganization items (B) (4,562)
---------
Net loss $ (18,633)
=========
(A) Other operating costs, net is comprised of a $2,590 non-cash
charge for an adjustment to the carrying value of assets
held for sale, and a $1,902 charge for severance and
benefits associated with the termination of approximately
320 employees in connection with staff reductions and shift
eliminations announced on June 22, 2004.
(B) Reorganization items is comprised of the following:
Professional fees relating to
bankruptcy matters $1,165
Key employee retention program Bonuses 595
Write-off of a portion of unamortized
debt costs associated with senior credit
agreement refinanced under DIP facility 2,802
------
$4,562
======
6
In re: DAN RIVER INC.
Case No. 04-10990
CONDENSED STATEMENT OF CASH FLOWS
(UNAUDITED)
For the Period June 6, 2004 to July 3, 2004
(in thousands)
Cash flows from operating activities:
Net loss $ (18,633)
Adjustments to reconcile net loss to net cash
provided by Operating activities:
Noncash interest expense 285
Depreciation and amortization of property, plant
and equipment 2,368
Amortization of restricted stock compensation 13
Other operating costs, net 4,492
Write-off of unamortized debt costs 2,802
Equity in loss of subsidiaries 4,841
Changes in operating assets and liabilities:
Accounts receivable (465)
Inventories 8,616
Prepaid expenses and other assets 824
Accounts payable and accrued expenses (7,526)
Other liabilities 13
--------
Net cash used by operating
activities (2,370)
--------
Cash flows from investing activities:
Capital expenditures (241)
Proceeds from sale of assets 642
--------
Net cash provided by investing
activities 401
--------
Cash flows from financing activities:
DIP credit facility - borrowings 38,434
DIP credit facility - payments (34,948)
Payments of long-term debt (2,038)
--------
Net cash provided by financing 1,448
activities --------
Net decrease in cash and cash equivalents (521)
Cash and cash equivalents at beginning of period 2,148
--------
Cash and cash equivalents at end of period $ 1,627
=========
7
In re: DAN RIVER INC.
Case No. 04-10990
MONTHLY ACCOUNTS RECEIVABLE RECONCILIATION AND AGING
(in thousands)
Accounts Receivable at Petition Date: $55,992
Accounts Receivable Reconciliation Amount
Net accounts Receivable at the Beginning of the
Reporting Period $ 56,242
PLUS: Current Month Sales, Net 33,584
LESS: Collections During the Month from Customers (33,260)
Other, Net 142
Net Accounts Receivable at the End of the Reporting
Period $ 56,708
Accounts Receivable Aging Amount
Current $ 55,822
<30 Days Past Due 8,704
31 - 60 Days Past Due 716
60 -90 Days Past Due 173
> 90 Days Past Due 572
Total Accounts Receivable 65,987
Less: Reserves and Allowances (9,279)
Accounts Receivable (Net) $ 56,708
8
In re: DAN RIVER INC.
Case No. 04-10990
MONTHLY ACCOUNTS PAYABLE AND SECURED PAYMENTS REPORT
(in thousands)
Post-Petition Accounts Payable consists of the following:
Accounts Payable Aging (Post Petition Only) Amount
0-30 Days $ 7,369
31 - 60 Days 305
61 - 90 Days -
Over 90 Days -
Other - Primarily Accruals for Goods & Services
Received But Not Yet Invoiced 941
Total Accounts Payable $ 8,615
SECURED CREDITORS:
The Debtor made no payments to secured creditors except as
otherwise permitted pursuant to Final Order, dated May 28, 2004,
Authorizing Secured Post-Petition Financing on a Super Priority
Basis.
9
In re: DAN RIVER INC.
Case No. 04-10990
INVENTORY AND FIXED ASSETS REPORT
INVENTORY REPORT (in thousands)
Inventory Balance at the Petition Date: $141,758
Inventory Reconciliation Amount
Inventory Balance at Beginning of Period $ 144,187
PLUS: Purchases and Other Costs Added During Period 25,850
LESS: Inventory Used/Sold (34,465)
Method of Costing Inventory: first-in, first-out
FIXED ASSET REPORT (in thousands)
Fixed Assets Fair Market Value at petition Date: unknown
Fixed Asset Reconciliation Amount
Fixed Asset BV at Beginning of Period $ 170,186
LESS: Depreciation Expense (2,368)
PLUS: Additions 254
Other Activity -
Fixed Assets BV at End of Period $ 168,072
Brief Description of Fixed Assets Purchased/Disposed of During
Period
Additions were generally for routine replacement items.
Pursuant to the "Order Establishing Procedures for Liquidating
Non-Essential Assets Free and Clear of Liens, Claims,
Encumbrances and Other Interests Through Either Auction or
Private Sale" (entered May 28, 2004), the Debtor is permitted to
sell assets that are valued at less than $250,000 individually in
transactions not valued at more than $1,000,000. No assets were
sold during the period pursuant to this order.
During the period the Debtor received $642,333 in proceeds from
the sale of looms pursuant to an agreement dated April 7, 2004.
The Debtor's motion to consummate this sale was granted by the
Court per order entered on May 11, 2004. Pursuant to the Post-
Petition Credit Agreement, the proceeds were applied to the
prepayment of the Debtor's Pre-Petition Term Loan Obligations.
10
In re: DAN RIVER INC.
Case No. 04-10990
MONTHLY TAX REPORT
TAXES PAID DURING THE MONTH
Name of Taxing Authority Description Amount
AR Dept. of Finance & Adm. SWH 344
CA Dept. of Employ. Development SWH 954
FL Dept. of Revenue Sales Tax 54
GA Dept. of Revenue Sales & Use Tax 4,591
GA Dept. of Revenue SWH 30,176
IL Dept. of Revenue SWH 1,291
IRS FICA & FWH 3,833,068
MS Bureau of Revenue SWH 798
NC Dept. of Revenue Sales & Use Tax 1,680
NC Dept. of Revenue SWH 56,199
NJ Division of Revenue SWH 1,616
NYC Dept. of Finance 2004 2nd Qtr Est. 2,600
Corp. Tax
NYC Dept. of Finance NYC Rent Tax 26,715
NYS Corporation Tax 2004 2nd Qtr Est. 3,700
Corp. Tax
NYS Employment Taxes SWH 46,946
NYS Employment Taxes Unemployment 684
OR Dept. of Revenue SWH 270
PA Dept. of Revenue 2004 2nd Qtr Est. 3,900
Corp. Tax
Receiver General Canada GST Return 20,231
SC Dept. of Revenue Sales & Use Tax 4
SC Dept. of Revenue SWH 813
TN Dept. of Revenue Sales & Use Tax 1,609
VA Dept. of Taxation Sales Tax 2,376
VA Dept. of Taxation Use Tax (May & 28,905
June)
VA Dept. of Taxation SWH 485,126
Total Taxes Paid 4,554,650
*Pursuant to the Order Authorizing the Debtors to (A) Maintain
Existing Bank Accounts and cash Management System, (B) Continue
Use of Existing Business Forms, and (C) Continue Use of Existing
Investment Guidelines, the Debtor has not opened new cash
accounts for tax payments.
11
In re: DAN RIVER INC.
Case No. 04-10990
TAXES OWED AND DUE
Name of Taxing Date Description Amount
Authority Payment
Due
AR Dept. of Finance & 7/15/2004 SWH 344
Adm.
AR Employment Security 7/31/2004 Unemployment 364
Dept.
CA Dept. of Employ. 7/31/2004 Unemployment 81
Development
CA State Board of 7/31/2004 Sales Tax 148
Equalization
FL Dept. of Revenue 7/20/2004 Sales Tax 139
FL Div. of Unemploy. 7/31/2004 Unemployment 19
Comp.
GA Dept. of Revenue 7/7/2004 SWH 3,471
GA Dept. of Labor 7/31/2004 Unemployment 52,586
GA Dept. of Revenue 7/20/2004 Sales & Use Tax 4,152
IL Dept. of Revenue 7/31/2004 Unemployment 119
IRS 7/31/2004 Fed'l 73,731
Unemployment
IRS 7/8/2004 FICA & FWH 223
MS Bureau of Revenue 7/15/2004 SWH 798
NC Dept. of Revenue 7/20/2004 Sales & Use Tax 760
NC Dept. of Revenue 7/8/2004 SWH 4,853
NC Employ. Security 7/31/2004 Unemployment 172,027
Commission
NJ Division of Revenue 7/31/2004 Unemployment 22
NY State Sales Tax 3/20/2005 Sales Tax 104
NYS Employment Taxes 7/31/2004 Unemployment 1,857
OR Dept. of Revenue 7/31/2004 Unemployment 18
Receiver General 8/3/2004 June 2004 18,871
Canada GST
Return
SC Dept. of Revenue 7/15/2004 SWH 1,059
SC Dept. of Revenue 7/20/2004 Sales & Use Tax 105
SC Employ. Security 7/31/2004 Unemployment 172
Commission
State of New Jersey 7/20/2004 Sales Tax 25
12
Date
Name of Taxing Payment
Authority Due Description Amount
TN Dept. of Revenue 7/20/2004 Sales & Use Tax 2,240
TN Dept. of Employ. 7/31/2004 Unemployment 15,910
Security
Treasurer, State of 7/20/2004 Sales Tax 14
Ohio
TX Comptroller of 7/20/2005 Sales Tax 40
Public Accts
TX Workforce Commission 7/31/2004 Unemployment 45
VA Dept. of Taxation 7/20/2004 Sales Tax 1,823
VA Dept. of Taxation 7/7/2004 SWH 38,891
VA Employment 7/31/2004 Unemployment 586,422
Commission
Total Taxes Unpaid 981,433
13
In re: DAN RIVER INC.
Case No. 04-10990
CONFIRMATION OF INSURANCE
List all policies of insurance in effect, including but not
limited to workers' compensation liability, fire, theft,
comprehensive, vehicle, health and life.
Type of Coverage Expiration
Property & Business Interruption 6/30/05
Boiler & Machinery 6/30/05
Commercial General Liability 6/1/05
General Liability - Brookneal Dam 6/1/05
Automobile -All states except TX, Canada 6/1/05
Automobile - Texas 6/1/05
International Package 6/1/05
Advertising Liability 6/1/05
Umbrella - Excess 6/1/05
Motor Truck Cargo & Marine Cargo 1/1/05
Canadian General Liability Policy 6/1/05
Directors & Officers 11/20/04
Crime 11/20/04
Fiduciary Liability 11/20/04
Special Risk 11/20/04
Workers Comp Excess for VA & GA 10/1/04
Workers Comp - AR, CA, FL, IL, MS, NJ, , 10/1/04
NC, OR, TX
Workers Comp. TN 12/8/04
Workers Comp. NY 11/21/04
Health 1/1/05
Life Insurance 1/1/06
Long Term Disability 1/1/05
Basic Accident 1/1/06
Business Travel Accident 9/1/04
Short Term Disability -NY 9/1/04
14
IN THE UNITED STATES BANKRUPTCY COURT
FOR THE NORTHERN DISTRICT OF GEORGIA
NEWNAN DIVISION
In re: ) Chapter 11
)
THE BIBB COMPANY LLC ) Case No. 04-10992
)
Debtor. ) Judge Drake
)
DEBTOR'S MONTHLY FINANCIAL REPORTS (BUSINESS)
FOR THE PERIOD FROM JUNE 6, 2004 TO JULY 3, 2004
Comes now the above-named debtor and files its Periodic Financial
Reports in accordance with the Guidelines established by the
United States Trustee and FRBP 2015.
/s/ Jonathan W. Jordan
-----------------------
Attorney for Debtor
Dated: Atlanta, GA
August 2, 2004
Debtor's Address and
Phone Number: KING & SPALDING LLP
2291 Memorial Drive James A. Pardo, Jr.
Danville, VA 24541 Georgia Bar No. 561206
(434) 799-7000 Sara Robinson Borders
Georgia Bar No. 610649
191 Peachtree Street
Atlanta, GA 30303-1763
(404) 572-4600
ATTORNEYS FOR THE DEBTOR
15
IN THE UNITED STATES BANKRUPTCY COURT
FOR THE NORTHERN DISTRICT OF GEORGIA
NEWNAN DIVISION
In re: ) Chapter 11
)
THE BIBB COMPANY LLC ) Case No. 04-10992
)
Debtor. ) Judge Drake
)
DEBTOR'S MONTHLY FINANCIAL REPORTS (BUSINESS)
FOR THE PERIOD FROM JUNE 6, 2004 TO JULY 3, 2004
NOTES TO THE MONTHLY OPERATING REPORT
Total Cash Disbursements During The Reporting Period: $0
The Debtor's only assets consist of idle real estate held for
sale, with no book value. There was no activity during the
reporting period.
I declare under penalty of perjury that this statement is true
and correct to the best of my knowledge and belief.
This 2nd day of August 2004. /s/ Barry F. Shea
-------------------------
Barry F. Shea
Executive Vice President-Chief
Financial Officer
16
IN THE UNITED STATES BANKRUPTCY COURT
FOR THE NORTHERN DISTRICT OF GEORGIA
NEWNAN DIVISION
In re: ) Chapter 11
)
DAN RIVER FACTORY STORES, INC.) Case No. 04-10993
)
Debtor. ) Judge Drake
)
DEBTOR'S MONTHLY FINANCIAL REPORTS (BUSINESS)
FOR THE PERIOD FROM JUNE 6, 2004 TO JULY 3, 2004
Comes now the above-named debtor and files its Periodic Financial
Reports in accordance with the Guidelines established by the
United States Trustee and FRBP 2015.
/s/ Jonathan W. Jordan
-----------------------
Attorney for Debtor
Dated: Atlanta, GA
August 2, 2004
Debtor's Address and
Phone Number: KING & SPALDING LLP
2291 Memorial Drive James A. Pardo, Jr.
Danville, VA 24541 Georgia Bar No. 561206
(434) 799-7000 Sara Robinson Borders
Georgia Bar No. 610649
191 Peachtree Street
Atlanta, GA 30303-1763
(404) 572-4600
ATTORNEYS FOR THE DEBTOR
17
IN THE UNITED STATES BANKRUPTCY COURT
FOR THE NORTHERN DISTRICT OF GEORGIA
NEWNAN DIVISION
In re: ) Chapter 11
)
DAN RIVER FACTORY STORES, INC. ) Case No. 04-10993
)
Debtor. ) Judge Drake
)
DEBTOR'S MONTHLY FINANCIAL REPORTS (BUSINESS)
FOR THE PERIOD FROM JUNE 6, 2004 TO JULY 3, 2004
NOTES TO THE MONTHLY OPERATING REPORT
Total Cash Disbursements During The Reporting Period: $60,000
The above amount is provided for the purpose of calculating the
US Trustee fee. This amount consists of the total of the
Debtor's cost of goods sold, selling, general and administrative
expenses, and capital expenditures for the reporting period ended
July 3, 2004.
As previously disclosed in the Dan River Factory Stores, Inc.
Statement of Financial Affairs, the Debtor owns no assets and
does not maintain a bank account. All disbursements for the
Debtor's business are made by the Debtor's parent, Dan River Inc.
For additional information on the nature of the Debtor's
operations and assets and liabilities, please refer to the
Debtor's previously filed Statement of Financial Affairs.
I declare under penalty of perjury that this statement and the
accompanying documents and reports are true and correct to the
best of my knowledge and belief.
This 2nd day of August 2004. /s/ Barry F. Shea
-------------------------
Barry F. Shea
Executive Vice President-Chief
Financial Officer
18
In re: DAN RIVER FACTORY STORES, INC.
Case No. 04-10993
CONDENSED BALANCE SHEET
(UNAUDITED)
July 3, 2004
(in thousands)
Assets
Due from parent $ 2,291
=======
Liabilities and Shareholder's Equity
Liabilities $ -
Common stock -
Paid-in capital 1,739
Retained earnings 552
------
$ 2,291
=======
CONDENSED STATEMENT OF OPERATIONS
(UNAUDITED)
For the Period June 6, 2004 to July 3, 2004
(in thousands)
Net sales $ 60
Cost of sales 28
------
Gross profit 32
Selling, general and administrative expenses 32
------
Net income $ -
======
19
IN THE UNITED STATES BANKRUPTCY COURT
FOR THE NORTHERN DISTRICT OF GEORGIA
NEWNAN DIVISION
In re: ) Chapter 11
)
DAN RIVER INTERNATIONAL LTD. ) Case No. 04-10991
)
Debtor. ) Judge Drake
)
DEBTOR'S MONTHLY FINANCIAL REPORTS (BUSINESS)
FOR THE PERIOD FROM JUNE 6, 2004 TO JULY 3, 2004
Comes now the above-named debtor and files its Periodic Financial
Reports in accordance with the Guidelines established by the
United States Trustee and FRBP 2015.
/s/ Jonathan W. Jordan
-----------------------
Attorney for Debtor
Dated: Atlanta, GA
August 2, 2004
Debtor's Address and
Phone Number: KING & SPALDING LLP
2291 Memorial Drive James A. Pardo, Jr.
Danville, VA 24541 Georgia Bar No. 561206
(434) 799-7000 Sara Robinson Borders
Georgia Bar No. 610649
191 Peachtree Street
Atlanta, GA 30303-1763
(404) 572-4600
ATTORNEYS FOR THE DEBTOR
20
IN THE UNITED STATES BANKRUPTCY COURT
FOR THE NORTHERN DISTRICT OF GEORGIA
NEWNAN DIVISION
In re: ) Chapter 11
)
DAN RIVER INTERNATIONAL LTD. ) Case No. 04-10991
)
Debtor. ) Judge Drake
)
DEBTOR'S MONTHLY FINANCIAL REPORTS (BUSINESS)
FOR THE PERIOD FROM JUNE 6, 2004 TO JULY 3, 2004
NOTES TO THE MONTHLY OPERATING REPORT
Total Cash Disbursements During The Reporting Period: $485,000
The above amount is provided for the purpose of calculating the
US Trustee fee. This amount consists of certain transfers to non-
Debtor Affiliates made pursuant to the Order Authorizing the
Debtor to (A) Maintain Existing Bank Accounts and Cash Management
System, (B) Continue Use of Existing Business Forms, and (C)
Continue Use of Existing Investment Guidelines. All such
disbursements were made on behalf of Dan River International Ltd.
by Dan River Inc. The Debtor has no operations and its sole
asset is its investment in foreign (non-debtor) subsidiaries.
For additional information, please refer to the Debtor's
previously filed Statement of Financial Affairs.
I declare under penalty of perjury that this statement and the
accompanying documents and reports are true and correct to the
best of my knowledge and belief.
This 2nd day of August 2004. /s/ Barry F. Shea
-------------------------
Barry F. Shea
Executive Vice President-Chief
Financial Officer
21
In re: DAN RIVER INTERNATIONAL LTD.
Case No. 04-10991
CONDENSED BALANCE SHEET
(UNAUDITED)
July 3, 2004
(in thousands)
Assets
Investment in subsidiaries $ 5,892
========
Liabilities and Shareholder's Equity
Liabilities:
Due to parent $ 19,152
Shareholder's equity:
Capital stock -
Accumulated deficit (13,260)
$ 5,892
========