1
EXHIBIT 99
UNITED STATES BANKRUPTCY COURT
MIDDLE DISTRICT OF TENNESSEE
In re: Case No.: 399-02649 THROUGH 399-02680
SERVICE MERCHANDISE COMPANY, INC.
Judge: PAINE
Chapter 11
Debtor(s)
MONTHLY OPERATING REPORT FOR PERIOD ENDING February 25, 2001
COMES NOW, SERVICE MERCHANDISE COMPANY, INC.
Debtor-In-Possession, and hereby submits its Monthly Operating Report
for the period commencing January 29, 2001 and ending February 25, 2001
as shown by the report and exhibits consisting of 15 pages and
containing the following as indicated:
X Monthly Reporting Questionnaire (Attachment 1)
------
X Comparative Balance Sheets (Forms OPR-1 & OPR-2)
------
N/A Summary of Accounts Receivable (Form OPR-3)
------
X Schedule of Postpetition Liabilities (Form OPR-4)
------
X Statement of Income (Loss) (Form OPR-5)
------
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. 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: 3/16/01 DEBTOR-IN-POSSESSION
By: /s/ Kenneth A. Conway
Name and Title: KENNETH A. CONWAY,
VICE PRESIDENT AND CONTROLLER
Address: 7100 SERVICE MERCHANDISE DRIVE
BRENTWOOD, TENNESSEE 37027
Telephone No: (615) 660-3340
Note: Report subject to further verification and account reconciliation
procedures
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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: JANUARY 29, 2001 THROUGH FEBRUARY 25, 2001
1. Payroll
WAGES TAXES
OFFICERS TITLE GROSS NET DUE PAID
- -----------------------------------------------------------------------------------------------------------------------------------
S. CUSANO CHAIRMAN OF THE BOARD, CHIEF EXECUTIVE OFFICER AND $ 50,188.10 $ 29,123.92 $ 4,203.55 $ 13,480.37
PRESIDENT
C. STEVEN MOORE SENIOR VICE PRESIDENT, CHIEF ADMINISTRATIVE OFFICER, $ 93,377.87 $ 58,278.69 $ 2,007.68 $ 27,241.24
GENERAL COUNSEL AND SECRETARY
MICHAEL E. HOGREFE SENIOR VICE PRESIDENT AND CHIEF FINANCIAL OFFICER $117,307.75 $ 77,497.18 $ 1,791.92 $ 38,018.65
ROBERT J. PINDRED VICE PRESIDENT AND TREASURER $ 33,686.46 $ 21,071.22 $ 730.73 $ 9,681.46
JOE M. ELLIOTT VICE PRESIDENT, PROPERTY ADMINISTRATION $ 33,150.78 $ 20,009.95 $ 816.10 $ 9,625.64
KARREN M. PRASIFKA ASSISTANT GENERAL COUNSEL VICE PRESIDENT $ 41,415.10 $ 26,261.00 $ 1,390.30 $ 13,642.27
KENNETH A. CONWAY VICE PRESIDENT AND CONTROLLER $ 36,349.05 $ 22,779.86 $ 776.26 $ 10,433.77
ERIC A. KOVATS SENIOR VICE PRESIDENT, STORES $ 67,729.70 $ 41,786.44 $ 1,426.68 $ 20,538.18
JERRY E. FOREMAN SENIOR VICE PRESIDENT, MERCHANDISING $ 82,736.43 $ 51,172.16 $ 1,856.82 $ 24,465.94
The following officers received an incentive bonus included in the amounts
above.
C. STEVEN MOORE $ 65,625.01
ROBERT J. PINDRED $ 22,125.03
JOE M. ELLIOTT $ 21,502.65
KARREN M. PRASIFKA $ 26,750.05
KENNETH A. CONWAY $ 24,000.05
ERIC A. KOVATS $ 45,729.24
JERRY E. FOREMAN $ 56,875.00
The following associate received a signing bonus included in the amounts above.
MICHAEL E. HOGREFE $ 100,000.00
The following former officers were entitled to bonuses, paid during the
time period, which are not included in the above amounts.
CHARLES K. SEPTER $ 150,000.06
ROSE C. SEPTER $ 82,151.15
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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: JANUARY 29, 2001 THROUGH FEBRUARY 25, 2001
2. INSURANCE
COVERAGE POLICY EXPIRATION
TYPE NAME OF CARRIER AMOUNT NUMBER DATE
- ------------------------------------------------------------------------------------------------------------------------------
Property Fireman's Fund Insurance Co $ 5 Million 01MXI97600751 12/31/01
Royal Indemnity Co. $ 5 Million RHD317182 12/31/01
Westchester Fire $15 Million IXA394430-0 12/31/01
Allianz Insurance Co $12 Million CLP1036568 12/31/01
TIG Insurance Co $13 Million XPT38844629 12/31/01
Westchester Fire $20 Million IXA394429-0 12/31/01
Allianz Insurance Co $30 Million CLP1036568 12/31/01
Allianz Insurance Co $25 Million CLP1036568 12/31/01
Boiler & Machinery Hartford Steam Boiler $10 Million 4914359 12/31/01
Transit Fireman's Fund Insurance Co $1 Million CCIMG72820 12/31/01
Ocean Cargo Fireman's Fund Insurance Co $10 Million CR37211 12/31/01
General Liability Ace American Ins Co $ 5 Million XSLG20577009 12/31/01
Workers' Compensation Pacific Employers Ins Co Statutory WLRC43024516 12/31/01
WC Excess Ace American Ins Co Statutory XWC014026 12/31/01
WC Contractual Indemnity Illinois Union Insurance Co Statutory CTPG20577344 12/31/01
Auto Pacific Employers Ins Co $1 Million ISAH07968358 12/31/01
Umbrella Ohio Casualty Group $50 Million BXO52805120 12/31/01
Excess Liability Zurich American of Illinois $50 Million AEC287610703 12/31/01
International Ace American Ins Co $1 Million PHF051491 12/31/01
Punitive Damages Magna Carta Ins. Ltd. $50 Million MCPD201058 12/31/01
Punitive Damages - Excess Zurich Ins. Co Bermuda Branch $50 Million ZICBB-091 PD 12/31/01
Directors & Officers Continental Insurance Co $10 Million 300714943 03/01/02
Federal Insurance Co $10 Million 81278902-A 03/01/02
Royal Insurance Co $10 Million PSF000009 03/01/02
Greenwich Ins. Co. $10 Million ELU82217-01 03/01/02
Zurich-American Ins. Co. $10 Million DOC3746468-00 03/01/02
Kemper Insurance Co $10 Million 3DY00200100 03/01/02
Crime National Union Fire Ins Co $10 Million 8726439 03/01/02
Fiduciary National Union Fire Ins Co $10 Million 8726812 03/01/02
Employment Practices Liability Chubb Insurance Co $ 5 Million 81278901A 03/01/02
National Union Fire Ins Co $ 5 Million 8727499 03/01/02
Royal Insurance Co $10 Million PSF000010 03/01/02
Special Crime Reliance Insurance Co $25 Million NFK1951937 05/01/02
PREMIUM DATE COVERAGE
TYPE NAME OF CARRIER AMOUNT PAID THROUGH
- ----------------------------------------------------------------------------------------------------------------
Property Fireman's Fund Insurance Co $685,000 12/31/01
Royal Indemnity Co. $ 90,250 12/31/01
Westchester Fire $ 64,125 12/31/01
Allianz Insurance Co $ 26,583 12/31/01
TIG Insurance Co $ 28,730 12/31/01
Westchester Fire $ 13,500 12/31/01
Allianz Insurance Co $ 20,250 12/31/01
Allianz Insurance Co $ 8,500 12/31/01
Boiler & Machinery Hartford Steam Boiler $ 9,934 12/31/01
Transit Fireman's Fund Insurance Co $ 10,000 12/31/01
Ocean Cargo Fireman's Fund Insurance Co $ 40,000 12/31/01
General Liability Ace American Ins Co $212,279 12/31/01
Workers' Compensation Pacific Employers Ins Co $136,566 12/31/01
WC Excess Ace American Ins Co $ 12,108 12/31/01
WC Contractual Indemnity Illinois Union Insurance Co $ 20,500 12/31/01
Auto Pacific Employers Ins Co $ 33,518 12/31/01
Umbrella Ohio Casualty Group $ 88,250 12/31/01
Excess Liability Zurich American of Illinois $ 30,000 12/31/01
International Ace American Ins Co $ 2,500 12/31/01
Punitive Damages Magna Carta Ins. Ltd. $ 40,000 12/31/01
Punitive Damages - Excess Zurich Ins. Co Bermuda Branch $ 5,000 12/31/01
Directors & Officers Continental Insurance Co $200,000 03/01/02
Federal Insurance Co $190,000 03/01/02
Royal Insurance Co $175,000 03/01/02
Greenwich Ins. Co. $198,949 03/01/02
Zurich-American Ins. Co. $146,704 03/01/02
Kemper Insurance Co $ 99,110 03/01/02
Crime National Union Fire Ins Co $ 53,833 03/01/02
Fiduciary National Union Fire Ins Co $ 25,839 03/01/02
Employment Practices Liability Chubb Insurance Co $100,000 03/01/02
National Union Fire Ins Co $ 70,000 03/01/02
Royal Insurance Co $ 85,000 03/01/02
Special Crime Reliance Insurance Co $ 13,458 05/01/02
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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: JANUARY 29, 2001 THROUGH FEBRUARY 25, 2001
3. BANK ACCOUNTS
TOTAL CASH AND CASH EQUIVALENTS
CASH IN STORES AND HOME OFFICE
- ------------------------------
HOME OFFICE $ 6,450
RETAIL SAFE FUNDS 1,785,292
CORPORATE ACCOUNTS 4,178,622
- ------------------
STORE DEPOSITORY ACCOUNTS
- -------------------------
FIRST TENNESSEE 986,669
KEY NATIONAL BANK 1,062,935
BANK OF BOSTON 247,113
BANK OF BOSTON CONNECTICUT 109,726
FIRST UNION 1,922,586
BANK ONE LOUISIANA 968,620
ABN - AMRO BANK 593,483
COMERICA BANK 168,838
AM SOUTH 1,330,132
BANK OF AMERICA 318,920
BANK OF OKLAHOMA 380,583
CHASE BANK OF TEXAS 893,455
SINGLE STORE DEPOSITORY ACCOUNTS 1,052,990
WELLS FARGO BANK 243,579
BANK ONE, IN 406,755
PNC BANK 1,875,009
OAK BROOK BANK 2,221,396
CREDIT CARD CASH ACCOUNTS (SALES PROCESSED BY CREDIT CARD COMPANY) 6,994,826
- -----------------------------------------------------------------
OTHER DEPOSITORY ACCOUNTS
- -------------------------
SERVICE MERCHANDISE - MUSCULAR DYSTROPHY ASSOC. 51,741
OTHER CASH ACCOUNTS 127,671
------------
TOTAL CASH PER GENERAL LEDGER $ 27,927,392
============
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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: JANUARY 29, 2001 THROUGH FEBRUARY 25, 2001
RECEIPTS AND DISBURSEMENTS
(DOLLARS IN THOUSANDS)
ACTUAL ACTUAL ACTUAL ACTUAL TOTAL
Monday 01/29/01 02/05/01 02/12/01 02/19/01 01/29/01
Sunday 02/04/01 02/11/01 02/18/01 02/25/01 02/25/01
--------- ---------- -------- -------- ---------
Receipts:
Sales receipts $ 13,088 $ 17,367 $ 37,378 $ 21,219 $ 89,052
Miscellaneous receipts 759 468 -- -- 1,227
--------- --------- -------- -------- ---------
Total available collections 13,847 17,835 37,378 21,219 90,279
Disbursements:
Merchandise disbursements 8,618 9,634 7,793 9,370 35,415
Non-merchandise disbursements 21,714 20,702 13,186 12,873 68,475
--------- --------- -------- -------- ---------
Total disbursements 30,332 30,336 20,979 22,243 103,890
--------- --------- -------- -------- ---------
Net receipts/(disbursements) $ (16,485) $ (12,501) $ 16,399 $ (1,024) $ (13,611)
========= ========= ======== ======== =========
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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: JANUARY 29, 2001 THROUGH FEBRUARY 25, 2001
ROLLING REVISED CASH FLOW FORECAST
(DOLLARS IN THOUSANDS)
ACTUAL ACTUAL ACTUAL FORECAST FORECAST FORECAST
01/28/01 02/25/01 03/04/01 04/01/01 04/29/01 05/27/01
-------- -------- -------- -------- -------- --------
Ending total revolver balance $141,748 $155,713 $157,198 $179,423 $218,393 $194,036
Term loan 60,000 60,000 60,000 60,000 60,000 60,000
Standby letters of credit 24,934 23,895 23,895 23,895 23,895 23,895
Trade letters of credit 20,912 23,538 23,484 20,196 19,979 14,237
-------- -------- -------- -------- -------- --------
Total extensions of credit 247,594 263,146 264,577 283,514 322,267 292,168
Borrowing base 393,983 409,138 402,837 404,572 426,523 412,885
-------- -------- -------- -------- -------- --------
Availability $146,389 $145,992 $138,260 $121,058 $104,256 $120,717
======== ======== ======== ======== ======== ========
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MONTHLY OPERATING REPORT
MONTHLY REPORTING QUESTIONNAIRE
CASE NAME: SERVICE MERCHANDISE COMPANY, INC. ET AL.
CASE NUMBER: 399-02649 THROUGH 399-02680
PERIOD: JANUARY 29, 2001 THROUGH FEBRUARY 25, 2001
4. PAYMENTS TO PROFESSIONALS JANUARY 29, 2001 THROUGH FEBRUARY 25, 2001
VENDOR # VENDOR NAME CHECK AMT. CHECK DATE CHECK #
- ---------------------------------------------------------------------------------------------------------------------------
50995 Brann & Isaacson $ 440.47 01/29/01 50032368
86237 Brusniak, Clement, Harrison & McCool, PC, Inc. $ 838.00 01/29/01 50032374
101232 E & Y Capital Advisors, LLC $ 78,998.00 02/01/01 B0023949
63078 Weil, Gotshal & Manges, LLP $ 501.68 02/01/01 B0023950
71217 Bass, Berry & Sims $ 99,904.52 02/01/01 B0023951
99391 Otterbourg, Steindler, Houston & Rosen, PC $ 96,768.98 02/01/01 B0023953
99454 Harwell, Howard, Hyne, Gabbert & Manner, PC $ 23,647.39 02/01/01 B0023954
99104 Jay Alix & Associates $101,802.93 02/01/01 B0023955
98378 Skadden, Arps, Slate, Meagher & Flom $595,785.00 02/01/01 B0023956
101625 DG Hart Associates, Inc. $ 29,407.78 02/05/01 B0023998
57117 Deloitte & Touche $132,500.00 02/07/01 50033150
101730 CBIZ Property Tax Solutions, Inc. $ 14,412.50 02/07/01 50033163
99329 Aegis Property Tax Specialists $ 4,625.81 02/07/01 50033211
99329 Aegis Property Tax Specialists $ 15,112.50 02/07/01 50033212
101606 Service Real Estate Venture $ 1,143.59 02/09/01 B0024010
101606 Service Real Estate Venture $344,957.94 02/09/01 B0024061
57117 Deloitte & Touche $ 26,572.00 02/14/01 50033785
86237 Brusniak, Clement, Harrison & McCool, PC, Inc. $ 207.58 02/14/01 50033793
99459 Robert L. Berger & Associates $ 75,357.33 02/16/01 B0024101
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FORM OPR-1 AND 2 SERVICE MERCHANDISE COMPANY, INC. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS (UNAUDITED)
(DEBTOR-IN-POSSESSION)
(DOLLARS IN THOUSANDS)
FEBRUARY 25, JANUARY 28,
2001 2001
------------ -----------
ASSETS
Current Assets:
Cash and cash equivalents $ 27,927 $ 19,426
Accounts receivable 5,802 5,641
Inventories 436,932 452,277
Prepaid expenses and other assets 12,919 17,564
-------- --------
TOTAL CURRENT ASSETS 483,580 494,908
-------- --------
PROPERTY AND EQUIPMENT
Owned assets, net of accumulated depreciation 360,414 362,410
Capitalized leases, net of accumulated amortization 11,945 12,138
-------- --------
TOTAL PROPERTY AND EQUIPMENT 372,359 374,548
-------- --------
Other assets and deferred charges 56,653 56,942
-------- --------
TOTAL ASSETS $912,592 $926,398
======== ========
LIABILITIES AND SHAREHOLDERS' (DEFICIT) EQUITY
Liabilities Not Subject to Compromise
Current Liabilities:
Notes payable to banks $155,713 $141,747
Accounts payable 31,651 37,060
Accrued expenses 135,634 151,114
State & local sales tax 8,685 6,299
Current maturities capitalized leases 97 94
-------- --------
TOTAL CURRENT LIABILITIES 331,780 336,314
-------- --------
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FORM OPR-1 AND 2 SERVICE MERCHANDISE COMPANY, INC. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS (UNAUDITED)
(DEBTOR-IN-POSSESSION)
(DOLLARS IN THOUSANDS)
Long-Term Liabilities:
Long-term debt $ 60,000 $ 60,000
Capitalized lease obligations 2,380 2,388
Liabilities Subject To Compromise:
Accrued restructuring costs 42,182 42,188
Capitalized lease obligations 21,651 21,968
Long-term debt 415,372 416,041
Accounts payable 197,901 197,839
Accrued expenses 69,983 69,115
----------- -----------
Total Liabilities Subject To Compromise 747,089 747,151
TOTAL LIABILITIES 1,141,249 1,145,853
----------- -----------
COMMITMENTS AND CONTINGENCIES
SHAREHOLDERS' (DEFICIT) EQUITY
Common stock 49,936 49,936
Additional paid-in-capital 5,881 5,881
Deferred compensation (202) (212)
Retained (deficit) earnings (284,272) (275,060)
----------- -----------
TOTAL SHAREHOLDERS' (DEFICIT) EQUITY (228,657) (219,455)
TOTAL LIABILITIES AND SHAREHOLDERS' (DEFICIT) EQUITY $ 912,592 $ 926,398
=========== ===========
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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: JANUARY 29, 2001 THROUGH FEBRUARY 25, 2001
SUMMARY OF ACCOUNTS RECEIVABLE
MONTH ENDED: 02/25/01
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: JANUARY 29, 2001 THROUGH FEBRUARY 25, 2001
SCHEDULE OF POST PETITION LIABILITIES
MONTH ENDED: 02/25/2001
FORM OPR-4
(DOLLARS IN THOUSANDS)
Total
---------
Trade Accounts Payable (Merchandise) $ 31,651
Total
---------
Expense & other payables $ 135,634
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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: JANUARY 29, 2001 THROUGH FEBRUARY 25, 2001
SCHEDULE OF POST PETITION LIABILITIES
FORM OPR-4
(DOLLARS IN THOUSANDS)
DATE DATE TOTAL
TAXES PAYABLE INCURRED DUE DUE
---------------------------------------
Federal income tax ** Various Various $ 7,908
State income tax Various Various $ (1)
-------
SUBTOTAL $ 7,907
-------
Sales/use tax SUBTOTAL * Various Various $ 8,838
-------
Personal property tax * Various Various $ 1,706
Real estate taxes * Various Various $ 9,933
Inventory taxes * Various Various $ --
Gross receipts/bus licenses * Various Various $ 99
Franchise taxes * Various Various $ 465
-------
SUBTOTAL $12,203
-------
-------
TOTAL TAXES PAYABLE $28,948
=======
* liability included in accrued expenses on OPR-2
** tax reserve
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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: JANUARY 29, 2001 THROUGH FEBRUARY 25, 2001
SCHEDULE OF POST PETITION LIABILITIES
FORM OPR-4
(DOLLARS IN THOUSANDS)
DATE TOTAL DUE
INCURRED DATE DUE (2/25/01 BALANCE)
----------------------------------------------------
POST PETITION SECURED DEBT
Revolver borrowings 04/14/00 04/14/04 $ 155,713
Facility standby letters of credit 04/14/00 04/14/04 23,895
Facility trade letters of credit 04/14/00 04/14/04 23,538
Term loans 04/14/00 04/14/04 60,000
---------
TOTAL EXTENSIONS OF CREDIT $ 263,146
=========
ACCRUED INTEREST PAYABLE $ 1,025
=========
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SERVICE MERCHANDISE COMPANY, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED)
(DEBTOR-IN-POSSESSION)
(DOLLARS IN THOUSANDS)
ACTIVITY
JANUARY 29, 2001
THROUGH
FEBRUARY 25, 2001
-----------------
Net Sales $ 90,321
Costs of merchandise sold and buying and occupancy expense 61,295
--------
Gross margin after cost of merchandise sold and buying and occupancy expenses 29,026
Selling, General and Administrative Expenses:
Net Employment Expense 13,183
Net Advertising 11,291
Banking and Other Fees 1,313
Real Estate and Other Taxes 1,921
Supplies 601
Communication and Equipment 327
Travel 291
UCC and Other Services 93
Legal and Professional 386
Sales and Shipping 51
Insurance 486
Miscellaneous (14)
Credit Card Services (41)
--------
Total Selling, General and Administrative Expenses 29,888
Other expense/(income), net (13)
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SERVICE MERCHANDISE COMPANY, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED)
(DEBTOR-IN-POSSESSION)
(DOLLARS IN THOUSANDS)
Restructuring charge (credit) --
Depreciation and amortization 3,221
--------
Earnings (loss) before interest, reorganization items, and income tax (4,070)
Interest expense - debt 2,917
Interest expense - capitalized leases 272
--------
Earnings (loss) before reorganization items, and income tax (7,259)
Reorganization Items:
Legal and Professional 1,720
Miscellaneous 165
Loss (Gain) on Disposal of Assets 68
Close Store Charges --
--------
Total Reorganization Items 1,953
Earnings (loss) before income tax (9,212)
Income tax benefit --
Cumulative Effect of Change in Accounting Principles --
--------
Net earnings (loss) $ (9,212)
========
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