EXHIBIT 99.1
CVEO CORPORATION f/k/a CONVERSE INC. CONSOLIDATED BALANCE SHEET
CVEO Corporation f/k/a Converse Inc.(debtor) and subsidiaries (non-debtor)
APRIL 2001
Ending Balance
4/30/01
---------------
ASSETS
CURRENT ASSETS
Cash and cash equivalents 57,491,700
Accounts receivables 1,598,775
Receivable from subsidiaries -
Inventories 256,910
Prepaid expenses and other current assets 1,582,224
---------------
Total current assets 60,929,609
Net property, plant and equipment 5,119,322
Intangible assets
Other assets 11,091,163
---------------
77,140,094
===============
LIABILITIES AND STOCKHOLDERS EQUITY (DEFICIENCY)
Current liabilities:
Credit facility 0
Current portion long-term debt 102,907,687
Notes payable (94,754)
Accounts payable 36,601,286
Accrued expenses 15,603,755
Income taxes payable 6,473,318
---------------
Total current liabilities 161,491,292
Current assets in excess of reorganization value 23,373,382
Stockholders' equity (deficiency):
Common stock 17,553,048
Additional paid in capital 4,436,788
Unearned compensation (147,063)
Retained deficit (129,088,916)
Cumulative currency translation adjustment (478,437)
---------------
Total stockholders' equity (deficiency) (107,724,580)
---------------
77,140,094
===============
Note: revised to include audit adjustments to Purchase Price
4
CVEO CORPORATION f/k/a CONVERSE INC. CONSOLIDATED BALANCE SHEET
CVEO Corporation f/k/a Converse Inc.(debtor) and subsidiaries (non-debtor)
MAY 2001
Ending Balance
5/31/01
--------------
ASSETS
CURRENT ASSETS
Cash and cash equivalents 27,033,503
Accounts receivables 1,822,488
Receivable from subsidiaries -
Inventories 256,909
Prepaid expenses and other current assets 949,506
--------------
Total current assets 30,062,406
Net property, plant and equipment 5,110,906
Investment in subsidiaries -
Other assets 8,146,309
--------------
43,319,621
==============
LIABILITIES AND STOCKHOLDERS EQUITY (DEFICIENCY)
Current liabilities:
Credit facility 0
Current portion long-term debt 79,001,468
Notes payable (107,888)
Accounts payable 34,250,365
Accrued expenses 13,652,704
Income taxes payable 6,495,097
--------------
Total current liabilities 133,291,746
Current assets in excess of reorganization value 23,200,246
Stockholders' equity (deficiency):
Common stock 17,553,048
Additional paid in capital 4,436,788
Unearned compensation (131,699)
Retained deficit (134,552,071)
Cumulative currency translation adjustment (478,437)
--------------
Total stockholders' equity (deficiency) (113,172,371)
--------------
43,319,621
==============
Note: revised to include audit adjustments to Purchase Price
5
CVEO CORPORATION f/k/a CONVERSE INC. CONSOLIDATED BALANCE SHEET
CVEO Corporation f/k/a Converse Inc. (debtor) and subsidiaries (non-debtor)
JUNE 2001
Ending Balance
6/30/01
--------------
ASSETS
CURRENT ASSETS
Cash and cash equivalents 24,851,194
Accounts receivables 1,628,917
Receivable from subsidiaries -
Inventories 256,909
Prepaid expenses and other current assets 1,061,120
---------------
Total current assets 27,798,140
Net property, plant and equipment 4,951,077
Investment in subsidiaries -
Other assets 8,139,189
---------------
40,888,406
===============
LIABILITIES AND STOCKHOLDERS EQUITY (DEFICIENCY)
Current liabilities:
Credit facility 0
Current portion long-term debt 79,001,468
Notes payable
Accounts payable 34,764,083
Accrued expenses 13,347,710
Income taxes payable 6,502,308
---------------
Total current liabilities 133,615,569
Current assets in excess of reorganization value 23,027,110
Stockholders' equity (deficiency):
Common stock 17,553,048
Additional paid in capital 4,436,788
Unearned compensation (116,335)
Retained deficit (137,149,337)
Cumulative currency translation adjustment (478,437)
---------------
Total stockholders' equity (deficiency) (115,754,273)
---------------
40,888,406
===============
6
CVEO CORPORATION f/k/a CONVERSE INC. CONSOLIDATED INCOME STATEMENT
CVEO Corporation f/k/a Converse Inc.(debtor) and subsidiaries (non-debtor)
APRIL 2001
---------------------------------------------------
Month of Apr. 2001 YTD APR. 2001
---------------------------------------------------
Net revenue 12,005,642 65,867,787
Cost of sales 10,909,294 51,653,368
---------------------------------------------------
Gross profit 1,096,348 14,214,419
Selling, general and administrative expenses 2,535,405 12,981,262
Royalty income 901,663 5,487,569
Restructuring and other unusual charges 782,441 2,243,711
---------------------------------------------------
Earnings from operations (1,319,835) 4,477,015
Interest expense 1,394,116 6,206,461
Other (income) expense, net (35,371,146) (33,780,799)
---------------------------------------------------
Net income before income tax 32,657,195 32,051,353
Income tax expense 188,113 881,923
---------------------------------------------------
Net income 32,469,082 31,169,430
===================================================
Note: revised to include audit adjustments to Purchase Price
7
CVEO CORPORATION f/k/a CONVERSE INC. CONSOLIDATED INCOME STATEMENT
CVEO Corporation f/k/a Converse Inc.(debtor) and subsidiaries (non-debtor)
MAY 2001
--------------------------------
Month of YTD May
May 2001 2001
--------------------------------
Net revenue 1,580 65,869,367
Cost of sales (25,067) 51,628,301
-------------------------------
Gross profit 26,647 14,241,066
Selling, general and administrative expenses 1,217,246 14,198,508
Royalty income (9,090) 5,478,479
Restructuring and other unusual charges 560,936 2,804,647
-------------------------------
Earnings from operations (1,760,625) 2,716,390
Interest expense 3,393,175 9,599,636
Other (income) expense, net 281,528 (33,499,271)
-------------------------------
Net income before income tax (5,435,328) 26,616,025
Income tax expense 27,829 909,752
-------------------------------
Net income (5,463,157) 25,706,273
===============================
Note: revised to include audit adjustments to Purchase Price
8
CVEO CORPORATION f/k/a CONVERSE INC. CONSOLIDATED INCOME STATEMENT
CVEO Corporation f/k/a Converse Inc.(debtor) and subsidiaries (non-debtor)
JUNE 2001
--------------------------------
Month of YTD June
June 2001 2001
--------------------------------
Net revenue 65,869,367
Cost of sales 120,096 51,748,396
-------------------------------
Gross profit (120,096) 14,120,971
Selling, general and administrative expenses 1,144,376 15,342,883
Royalty income - 5,478,479
Restructuring and other unusual charges 214,919 3,019,566
-------------------------------
Earnings from operations (1,479,391) 1,237,001
Interest expense 499,860 10,099,495
Other (income) expense, net 590,186 (32,909,086)
-------------------------------
Net income before income tax (2,569,437) 24,046,592
Income tax expense 27,829 937,581
-------------------------------
Net income (2,597,266) 23,109,011
===============================
9
CVEO Corporation f/k/a Converse Inc.
Shedule of Cash Receipts & Disbursements Form MOR1
$=thousands
Actual Actual Actual Actual Actual Actual Total
1/22-1/27 1/28-2/24 2/25-3/31 4/1-4/30 5/1-5/31 6/1-6/30 1/22-6/30
JAN FEB MAR APR MAY JUNE
CASH RECEIPTS:
Domestic Accounts 2,413 5,887 10,008 14,007 1,187 33,502
Outlet Stores 255 1,227 1,533 1,495 105 125 4,740
Int'l Distributors 2,315 1,555 6,839 5,038 15,747
Royalty Receipts 119 2,411 385 1,074 3,989
Interest Receipts 3 76
Other Receipts 127 116 9 193 340 785
TOTAL RECEIPTS 5,102 11,207 18,881 21,623 1,488 541 58,763
DISBURSEMENTS:
Accounts Payable
Raw Materials 69 188 111 21 389
Duties/Customs 96 745 903 380 2,124
Other Disbursements 14 920 1,549 1,436 2,569 883 7,371
Traffic 45 416 584 276 1,321
Advertising/Mktg - 287 75 22 384
Player Contracts - 59 42 - 101
Rent - 252 268 258 778
Capital Expenditures - - - - -
Float Adjustment (224) (780) 214 181 (609)
-
Total Accounts Payable - 2,087 3,746 2,574 2,569 883 11,859
-
Foreign Fnshd Gds-L/C 1,141 6,738 7,665 3,909 19,453
Payroll - 1,605 2,484 1,526 3,062 826 9,503
Tax Payments 317 1,053 1,264 802 511 3,947
Japan - 19 113 - 132
Singapore - 96 62 61 219
Other 224 853 1,190 591 2,858
Restructuring Fees - 65 52 163 149 1,307 1,736
TOTAL CASH
DISBURSEMENTS 1,682 12,516 16,576 9,626 6,291 3,016 49,707
10
NET CASH REC/DSB
BEFORE BA FIN 3,420 (1,309) 2,305 11,997 (4,803) (2,475) 9,056
-----------------------------------------------------------------------------------
ADD BA FINANCING 1,119 6,583 7,529 981 16,212
-
LESS BA MATURITY 473 2,343 4,921 19,175 26,912
------------------------------------------------------------------------------------
NET CASH REC/DSB
AFTER BA FINANCING 4,066 2,931 4,913 (6,197) (4,803) (2,475) (1,644)
-----------------------------------------------------------------------------------
Proceeds Sale of Assets 92,500 92,500
INTEREST/FEES:
BANKS 19 325 677 664 1,685
NOTEHOLDERS 370 877 147 369 1,763
CONVERTIBLE NOTES - -
DIP FEE 393 250 643
-
BT Loan Payoff - - - 37,039 37,039
Secured Notes Payoff 23,906 23,906
REVOLVER BALANCE 34,983 32,747 29,781 37,039 - - -
NET CASH ACTIVITY 26,383 (2,475) 23,908
LETTERS OF CREDIT
ADD: - 3,397 4,542 1,747 9,686
SUBTRACT: 1,140 6,736 7,756 3,818 19,450
TOTAL L/C 9,099 5,760 2,546 477 477
BA REFINANCING
ADD: 1,119 6,583 7,529 981 16,212
SUBTRACT: 473 2,342 4,920 19,174 26,909
TOTAL B/A REFINANCING 11,345 15,584 18,193 - -
STANDBY L/C 828 828 828 828 919 919 919
TOTAL INE UTILIS/CASH 56,255 54,920 51,348 38,344 25,464 22,989 22,989
BALANCE -----------------------------------------------------------------------------------
11