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EXHIBIT 99
UNITED STATES BANKRUPTCY COURT
MIDDLE DISTRICT OF TENNESSEE
In re: Case No.: 399-02649 THROUGH 399-02680
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SERVICE MERCHANDISE COMPANY, INC.
--------------------------------- Judge: PAINE
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Chapter 11
Debtor(s)
MONTHLY OPERATING REPORT FOR PERIOD ENDING December 31, 2000
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COMES NOW, SERVICE MERCHANDISE COMPANY, INC.
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Debtor-In-Possession, and hereby submits its Preliminary Monthly Operating Report for the
period commencing November 27, 2000
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and ending December 31, 2000 as shown by the report and exhibits consisting of 7 pages and
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containing the following as indicated:
X Partial Monthly Reporting Questionnaire Available at January 19, 2001 (Attachment 1)
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Comparative Balance Sheets (Forms OPR-1 & OPR-2)
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N/A Summary of Accounts Receivable (Form OPR-3)
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Schedule of Postpetition Liabilities (Form OPR-4)
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Statement of Income (Loss) (Form OPR-5)
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I declare under penalty of perjury that this report and all the
attachments are true and correct to the best of my knowledge and belief. This
report is based on preliminary unaudited results, and includes those reports
agreed upon as appropriate at this time between the Debtor and the U.S. Trustee.
The Debtor and the U.S. Trustee have also agreed that the Debtor will file the
remaining reports and forms by February 19, 2001. I also hereby certify that the
original Monthly Operating Report was filed with the Bankruptcy Court Clerk and
a copy delivered to the U.S. Trustee.
Date: 1/22/01 DEBTOR - IN - POSSESSION
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By: /s/ Kenneth A. Conway
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Name and Title: KENNETH A. CONWAY, VICE PRESIDENT AND CONTROLLER
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Address: 7100 SERVICE MERCHANDISE DRIVE
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BRENTWOOD, TENNESSEE 37027
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Telephone No: (615) 660-3340
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Note: Report subject to further verification and account reconciliation
procedures
Page 1
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CHAPTER 11
MONTHLY OPERATING REPORT
MONTHLY REPORTING QUESTIONNAIRE
CASE NAME: SERVICE MERCHANDISE COMPANY, INC. et. al.
CASE NUMBER: 399-02649 THROUGH 399-02680
PERIOD: NOVEMBER 27, 2000 THROUGH DECEMBER 31, 2000
1. Payroll
WAGES TAXES
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OFFICERS TITLE GROSS NET DUE PAID
- --------------- ----------------------- ---------- ---------- ---------- -----------
SAM CUSANO CHIEF EXECUTIVE OFFICER $50,000.00 $24,114.53 $ 6,423.32 $ 19,269.98
C. STEVEN MOORE SENIOR VICE PRESIDENT, CHIEF ADMINISTRATIVE OFFICER,
GENERAL COUNSEL AND SECRETARY $27,693.91 $18,628.01 $ 2,161.67 $ 6,712.01
CHARLES K. SEPTER PRESIDENT AND CHIEF OPERATING OFFICER $38,461.56 $26,947.64 $ 3,352.20 $ 9,956.92
ROBERT J. PINDRED VICE PRESIDENT AND TREASURER $11,538.48 $ 6,990.96 $ 609.31 $ 3,777.93
JOE M. ELLIOTT VICE PRESIDENT, PROPERTY ADMINISTRATION $11,538.48 $ 8,293.96 $ 659.39 $ 1,978.17
KARREN PRASIFKA ASSISTANT GENERAL COUNSEL VICE PRESIDENT $14,615.40 $ 9,937.96 $ 1,151.39 $ 3,454.17
KENNETH A. CONWAY VICE PRESIDENT AND CONTROLLER $12,307.72 $ 9,608.29 $ 640.25 $ 1,920.77
ERIC A. KOVATS SENIOR VICE PRESIDENT, STORES $21,924.71 $15,207.67 $ 1,508.13 $ 4,748.31
ROSE C. SEPTER SENIOR VICE PRESIDENT, JEWELRY MERCHANDISING $21,153.88 $14,739.27 $ 1,603.65 $ 4,810.96
JERRY E. FOREMAN SENIOR VICE PRESIDENT, MERCHANDISING $25,770.83 $ 5,409.11 $ 4,985.64 $15,183.92
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CHAPTER 11
MONTHLY OPERATING REPORT
MONTHLY REPORTING QUESTIONNAIRE
CASE NAME: SERVICE MERCHANDISE COMPANY, INC. et. al.
CASE NUMBER: 399-02649 THROUGH 399-02680
PERIOD: November 27, 2000 THROUGH December 31, 2000
2. INSURANCE
DATE
COVERAGE POLICY EXPIRATION PREMIUM COVERAGE
TYPE NAME OF CARRIER AMOUNT NUMBER DATE AMOUNT PAID THROUGH
- ------------------ --------------------------- ---------- ------------ ---------- -------- ------------
Property Fireman's Fund Insurance Co $5 Million 01MXI97600751 12/31/01 $685,000 12/31/01
Royal $5 Million RHD314289 12/31/01 $ 85,500 12/31/01
Westchester Fire $15 Million 1XA394310 12/31/01 $ 64,125 12/31/01
Allianz Insurance Co $12 Million TBD 12/31/01 $ 26,520 12/31/01
TIG Insurance Co $13 Million XPT38844629 12/31/01 $ 28,730 12/31/01
Westchester Fire $20 Million 1XA394311 12/31/01 $ 13,500 12/31/01
Allianz Insurance Co $30 Million TBD 12/31/01 $ 19,125 12/31/01
Allianz Insurance Co $25 Million TBD 12/31/01 $ 8,500 12/31/01
Boiler & Machinery Hartford Steam Boiler $10 Million TBD 12/31/01 $ 14,280 12/31/01
Transit Fireman's Fund Insurance Co $1 Million TBD 12/31/01 $ 13,091 12/31/01
Ocean Cargo Fireman's Fund Insurance Co $10 Million TBD 12/31/01 $ 40,000 12/31/01
Special Crime Reliance Insurance Co $25 Million NFK1951937 05/01/02 $ 13,458 05/01/02
Crime National Union Fire Ins Co $10 Million 858-0797 03/01/01 $ 56,505 03/01/01
Fiduciary National Union Fire Ins Co $10 Million 267-81-30 03/01/01 $ 19,140 03/01/01
Employment Practices Liability Chubb Insurance Co $10 Million 81278901A 03/01/01 $130,845 03/01/01
Royal Insurance Co $10 Million PSF000010 03/01/01 $ 56,364 03/01/01
Directors & Officers Continental Insurance Co $10 Million 300714943 03/01/01 $453,500 03/01/01
Chubb Insurance Co $10 Million 81278902-A 03/01/01 $266,666 03/01/01
Royal Insurance Co $10 Million PSF000009 03/01/01 $133,000 03/01/01
Umbrella Federal Insurance Co $50 Million BXO52805120 12/31/01 $ 88,250 12/31/01
Excess Liability American Guarantee & Liab $50 Million AEC287610703 12/31/01 $ 30,000 12/31/01
International Ace American Ins Co $1 Million PHF051491 12/31/01 $ 2,500 12/31/01
Punitive Damages Chubb Atlantic Indemnity $50 Million MCPD201058 12/31/01 $ 40,000 12/31/01
Punitive Damages - Excess Zurich International Bermuda $50 Million ZICBB-091 PD 12/31/01 $ 5,000 12/31/01
General Liability Ace American Ins Co $5 Million XSLG20577009 12/31/01 $ 44,320 01/31/01
Workers' Compensation Pacific Employers Ins Co Statutory WLRC43024516 12/31/01 $ 27,325 01/31/01
WC Excess Ace American Ins Co Statutory XWC014026 12/31/01 $ 12,108 12/31/01
WC Contractual Indemnity Illinois Union Insurance Co Statutory CTPG20577344 12/31/01 $ 20,500 12/31/01
Auto Pacific Employers Ins Co $1 Million ISAH07968358 12/31/01 $ 33,518 12/31/01
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CHAPTER 11
MONTHLY OPERATING REPORT
MONTHLY REPORTING QUESTIONNAIRE
CASE NAME: SERVICE MERCHANDISE COMPANY, INC. et. al.
CASE NUMBER: 399-02649 THROUGH 399-02680
PERIOD: NOVEMBER 27, 2000 THROUGH DECEMBER 31, 2000
RECEIPTS AND DISBURSEMENTS
(Dollars in Thousands)
ACTUAL ACTUAL ACTUAL ACTUAL ACTUAL TOTAL
Monday 11/27/00 12/04/00 12/11/00 12/18/00 12/25/00 11/27/00
Sunday 12/03/00 12/10/00 12/17/00 12/24/00 12/31/00 12/31/00
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Receipts:
Sales receipts $59,638 $53,471 $70,452 $102,145 $89,622 $375,328
Miscellaneous receipts -- 419 -- 217 $ 636
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Total available collections 59,638 53,890 70,452 102,362 89,622 375,964
Disbursements:
Merchandise disbursements 29,483 13,780 15,363 16,510 9,369 $ 84,505
Non-merchandise disbursements 16,536 25,005 20,776 20,240 17,132 $ 99,689
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Total disbursements 46,019 38,785 36,139 36,750 26,501 184,194
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Net receipts/(disbursements) $13,619 $15,105 $34,313 $ 65,612 $63,121 $191,770
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CHAPTER 11
MONTHLY OPERATING REPORT
MONTHLY REPORTING QUESTIONNAIRE
CASE NAME: SERVICE MERCHANDISE COMPANY, INC. et. al.
CASE NUMBER: 399-02649 THROUGH 399-02680
PERIOD: October 30, 2000 THROUGH November 26, 2000
4. Payments to Professionals November 27, 2000 through December 31, 2000
Vendor # Vendor Name Check Amt. Check Date Check #
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57117 Deloitte & Touche $ 57,012.23 11/27/00 50025673
101232 E & Y Capital Advisors, LLC $112,840.00 11/27/00 B0023457
99454 Harwell, Howard, Hyne, Gabbert & Manner, PC $ 46,350.19 11/27/00 B0023464
99104 Jay Alix & Associates $111,904.62 11/27/00 B0023465
99391 Otterbourg, Steindler, Houston & Rosen, PC $141,610.15 11/27/00 B0023463
101993 Rothschild, Inc. $107,555.83 11/27/00 B0023458
99444 Sitrick & Company $ 11,718.01 11/27/00 B0023462
98378 Skadden, Arps, Slate, Meagher & Flom $522,656.00 11/27/00 B0023461
94414 Keen Realty Consultants, Inc. $450,000.00 12/07/00 B0023556
86237 Brusniak, Clement, Harrison & McCool, PC $ 683.22 12/08/00 50026915
94414 Keen Realty Consultants, Inc. $ 18,317.00 12/15/00 50027521
57117 Deloitte & Touche $162,410.00 12/18/00 50027762
101993 Rothschild, Inc. $115,903.86 12/18/00 B0023607
99444 Sitrick & Company $ 26,181.79 12/18/00 B0023608
53703 Barron and Stadfeld, PC $ 1,272.75 12/20/00 50028023
63010 Rives & Peterson $ 2.83 12/20/00 50028323
99329 Aegis Property Tax Specialists $ 14,362.50 12/21/00 50028204
101730 CBIZ Property Tax Solutions, Inc. $ 4,467.63 12/21/00 50028178
57117 Deloitte & Touche $ 34,858.47 12/21/00 50028166
67017 Barkley & Thompson $ 42.10 12/22/00 50028324
101730 CBIZ Property Tax Solutions, Inc. $ 3,034.24 12/22/00 50028328
101730 CBIZ Property Tax Solutions, Inc. $ 6,102.53 12/22/00 50028329
101730 CBIZ Property Tax Solutions, Inc. $ 4,636.64 12/22/00 50028330
101730 CBIZ Property Tax Solutions, Inc. $ 12,000.00 12/22/00 50028331
101730 CBIZ Property Tax Solutions, Inc. $ 11,188.78 12/22/00 50028332
101730 CBIZ Property Tax Solutions, Inc. $ 53.16 12/22/00 50028333
101730 CBIZ Property Tax Solutions, Inc. $ 735.48 12/22/00 50028334
101730 CBIZ Property Tax Solutions, Inc. $ 2,718.93 12/22/00 50028335
101730 CBIZ Property Tax Solutions, Inc. $ 12,793.75 12/22/00 50028336
101730 CBIZ Property Tax Solutions, Inc. $ 4,650.00 12/22/00 50028337
101730 CBIZ Property Tax Solutions, Inc. $ 746.18 12/22/00 50028338
101730 CBIZ Property Tax Solutions, Inc. $ 8,343.61 12/22/00 50028339
71217 Bass, Berry & Sims $135,031.37 12/27/00 B0023670
50995 Brann & Isaacson $ 356.24 12/27/00 50028948
101625 DG Hart Associates, Inc. $ 58,128.33 12/27/00 B0023668
101625 DG Hart Associates, Inc. $ 33,681.93 12/27/00 B0023669
101232 E & Y Capital Advisors, LLC $ 74,869.00 12/27/00 B0023667
99454 Harwell, Howard, Hyne, Gabbert & Manner, PC $ 36,820.81 12/27/00 B0023675
99104 Jay Alix & Associates $136,321.35 12/27/00 B0023673
99391 Otterbourg, Steindler, Houston & Rosen, PC $119,014.90 12/27/00 B0023674
99459 Robert L. Berger & Associates $ 40,247.49 12/27/00 B0023677
98378 Skadden, Arps, Slate, Meagher & Flom $518,102.00 12/27/00 B0023672
94005 Donald A. Blum $ 2,400.00 12/29/00 50029187
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CHAPTER 11
MONTHLY OPERATING REPORT
CASE NAME: SERVICE MERCHANDISE COMPANY, INC. et al.
CASE NUMBER: 399-02649 THROUGH 399-02680
PERIOD: NOVEMBER 27, 2000 THROUGH DECEMBER 31, 2000
SUMMARY OF ACCOUNTS RECEIVABLE
Month Ended: 12/31/00
FORM OPR-3 NOT APPLICABLE
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CHAPTER 11
MONTHLY OPERATING REPORT
MONTHLY REPORTING QUESTIONNAIRE
CASE NAME: SERVICE MERCHANDISE COMPANY, INC. et. al.
CASE NUMBER: 399-02649 THROUGH 399-02680
PERIOD: NOVEMBER 27, 2000 THROUGH DECEMBER 31, 2000
3. BANK ACCOUNTS
TOTAL CASH AND CASH EQUIVALENTS
CASH IN STORES AND HOME OFFICE
HOME OFFICE $ 7,250
RETAIL SAFE FUNDS 4,689,103
CORPORATE ACCOUNTS 8,688,808
STORE DEPOSITORY ACCOUNTS
FIRST TENNESSEE 743,090
KEY NATIONAL BANK 545,474
BANK OF BOSTON 185,766
BANK OF BOSTON CONNECTICUT 136,843
FIRST UNION 2,381,156
BANK ONE LOUISIANA 550,284
ABN - AMRO BANK 169,207
COMERICA BANK 173,456
AM SOUTH 423,464
BANK OF AMERICA 27,755
BANK OF OKLAHOMA 741,229
CHASE BANK OF TEXAS 677,945
SINGLE STORE DEPOSITORY ACCOUNTS 681,546
WELLS FARGO BANK 95,765
BANK ONE, IN 578,448
PNC BANK 862,992
OAK BROOK BANK 2,467,739
CREDIT CARD CASH ACCOUNTS (SALES PROCESSED BY CREDIT CARD COMPANY) 6,948,287
OTHER DEPOSITORY ACCOUNTS
SERVICE MERCHANDISE - MUSCULAR DYSTROPHY ASSOC 42,819
OTHER CASH ACCOUNTS 18,283
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TOTAL CASH PER GENERAL LEDGER $31,836,708
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