1
MIDDLE DISTRICT OF TENNESSEE
In re: Case No.: 399-02649 THROUGH 399-02680
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SERVICE MERCHANDISE COMPANY, INC.
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Judge: PAINE
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Chapter 11
Debtor(s)
MONTHLY OPERATING REPORT FOR PERIOD ENDING April 1, 2001
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COMES NOW, SERVICE MERCHANDISE COMPANY, INC.
------------------------------------
Debtor-In-Possession, and hereby submits its Monthly Operating Report for the period commencing February 26, 2001
-----------------
and ending April 1, 2001 as shown by the report and exhibits consisting of 15 pages and containing the following as indicated:
------------- --
X Monthly Reporting Questionnaire (Attachment 1)
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X 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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X Schedule of Postpetition Liabilities (Form OPR-4)
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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: 4/23/01 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
2
CHAPTER 11
MONTHLY OPERATING REPORT
MONTHLY REPORTING QUESTIONNAIRE
CASE NAME: SERVICE MERCHANDISE COMPANY, INC. et. al.
CASE NUMBER: 399-02649 THROUGH 399-02680
PERIOD: FEBRUARY 26, 2001 THROUGH APRIL 1, 2001
1. Payroll
WAGES TAXES
OFFICERS TITLE GROSS NET DUE PAID
- ------------------------------------------------------------------------------------------------------------------------------------
S. CUSANO CHAIRMAN OF THE BOARD, CHIEF EXECUTIVE OFFICER
AND PRESIDENT $ 273,327.10 $ 186,448.73 $ 4,500.55 $ 78,499.52
C. STEVEN MOORE SENIOR VICE PRESIDENT, CHIEF ADMINISTRATIVE
OFFICER, GENERAL COUNSEL AND SECRETARY $ 120,754.27 $ 82,400.65 $ 2,167.60 $ 33,351.52
MICHAEL E. HOGREFE SENIOR VICE PRESIDENT AND CHIEF FINANCIAL OFFICER $ 32,118.57 $ 21,530.63 $ 1,667.30 $ 7,882.16
ROBERT J. PINDRED VICE PRESIDENT AND TREASURER $ 43,531.61 $ 27,866.88 $ 552.76 $ 12,278.14
JOE M. ELLIOTT VICE PRESIDENT, PROPERTY ADMINISTRATION $ 42,800.13 $ 26,456.70 $ 632.76 $ 12,280.88
KARREN M. PRASIFKA ASSISTANT GENERAL COUNSEL VICE PRESIDENT $ 53,484.52 $ 35,965.91 $ 1,161.80 $ 16,217.31
KENNETH A. CONWAY VICE PRESIDENT AND CONTROLLER $ 46,976.37 $ 30,522.80 $ 584.86 $ 12,837.06
ERIC A. KOVATS SENIOR VICE PRESIDENT, STORES $ 87,404.59 $ 58,621.92 $ 5,158.48 $ 7,589.83
JERRY E. FOREMAN SENIOR VICE PRESIDENT, MERCHANDISING $ 106,879.31 $ 72,168.98 $ 2,005.33 $ 29,054.20
KIMBERLY B. SOUTHARD ASSISTANT VICE PRESIDENT, STRATEGIC PLANNING
AND ASSISTANT TREASURER $ 29,973.59 $ 18,079.40 $ 686.09 $ 9,137.37
The following officers received an incentive bonus included in the amounts
above.
S. CUSANO $ 210,639.00
C. STEVEN MOORE $ 86,270.64
ROBERT J. PINDRED $ 29,085.56
JOE M. ELLIOTT $ 28,267.38
KARREN M. PRASIFKA $ 35,165.62
KENNETH A. CONWAY $ 31,550.47
ERIC A. KOVATS $ 60,115.66
JERRY E. FOREMAN $ 74,767.88
KIMBERLY B. SOUTHARD $ 18,897.39
The following former officers were entitled to the remainder of the annual incentive bonus, paid during the timeperiod,
which are not included in the above amounts.
CHARLES K. SEPTER $ 162,029.00
ROSE C. SEPTER $ 40,211.76
Page 2
3
CHAPTER 11
MONTHLY OPERATING REPORT
MONTHLY REPORTING QUESTIONNAIRE
CASE NAME: SERVICE MERCHANDISE COMPANY, INC. et. al.
CASE NUMBER: 399-02649 THROUGH 399-02680
PERIOD: FEBRUARY 26, 2001 THROUGH APRIL 1, 2001
2. INSURANCE
COVERAGE POLICY EXPIRATION PREMIUM DATE 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 Indemnity Co. $5 Million RHD317182 12/31/01 $90,250 12/31/01
Westchester Fire $15 Million 1XA394430-0 12/31/01 $64,125 12/31/01
Allianz Insurance Co $12 Million CLP1036568 12/31/01 $26,583 12/31/01
TIG Insurance Co $13 Million XPT38844629 12/31/01 $28,730 12/31/01
Westchester Fire $20 Million 1XA394429-0 12/31/01 $13,500 12/31/01
Allianz Insurance Co $30 Million CLP1036568 12/31/01 $20,250 12/31/01
Allianz Insurance Co $25 Million CLP1036568 12/31/01 $8,500 12/31/01
Boiler & Machinery Hartford Steam Boiler $10 Million 4914359 12/31/01 $9,934 12/31/01
Transit Fireman's Fund Insurance Co $1 Million CCIMG72820 12/31/01 $10,000 12/31/01
Ocean Cargo Fireman's Fund Insurance Co $10 Million CR37211 12/31/01 $40,000 12/31/01
General Liability Ace American Ins Co $5 Million XSLG20577009 12/31/01 $212,279 12/31/01
Workers' Compensation Pacific Employers Ins Co Statutory WLRC43024516 12/31/01 $136,566 12/31/01
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
Umbrella Ohio Casualty Group $50 Million BXO52805120 12/31/01 $88,250 12/31/01
Excess Liability Zurich American of Illinois $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 Magna Carta Ins. Ltd. $50 Million MCPD201058 12/31/01 $40,000 12/31/01
Punitive Damages - Excess Zurich Ins. Co Bermuda Branch $50 Million ZICBB-091 PD 12/31/01 $5,000 12/31/01
Directors & Officers Continental Insurance Co $10 Million 300714943 03/01/02 $200,000 03/01/02
Federal Insurance Co $10 Million 81278902-A 03/01/02 $190,000 03/01/02
Royal Insurance Co $10 Million PSF000009 03/01/02 $175,000 03/01/02
Greenwich Ins. Co. $10 Million ELU82217-01 03/01/02 $198,949 03/01/02
Zurich-American Ins. Co. $10 Million DOC3746468-00 03/01/02 $146,704 03/01/02
Kemper Insurance Co $10 Million 3DY00200100 03/01/02 $99,110 03/01/02
Crime National Union Fire Ins Co $10 Million 8726439 03/01/02 $53,833 03/01/02
Fiduciary National Union Fire Ins Co $10 Million 8726812 03/01/02 $25,839 03/01/02
Employment Practices Liability Chubb Insurance Co $5 Million 81278901A 03/01/02 $100,000 03/01/02
National Union Fire Ins Co $5 Million 8727499 03/01/02 $70,000 03/01/02
Royal Insurance Co $10 Million PSF000010 03/01/02 $85,000 03/01/02
Special Crime Reliance Insurance Co $25 Million NFK1951937 05/01/02 $13,458 05/01/02
Page 3
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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: FEBRUARY 26, 2001 THROUGH APRIL 1, 2001
3. BANK ACCOUNTS
TOTAL CASH AND CASH EQUIVALENTS
CASH IN STORES AND HOME OFFICE
HOME OFFICE $ 6,450
RETAIL SAFE FUNDS 1,782,963
CORPORATE ACCOUNTS 3,081,929
STORE DEPOSITORY ACCOUNTS
FIRST TENNESSEE 1,250,754
KEY NATIONAL BANK 541,871
BANK OF BOSTON 288,947
BANK OF BOSTON CONNECTICUT 124,191
FIRST UNION 2,302,991
BANK ONE LOUISIANA 603,684
ABN - AMRO BANK 300,432
COMERICA BANK 196,349
AM SOUTH 686,967
BANK OF AMERICA 109,468
BANK OF OKLAHOMA 234,374
CHASE BANK OF TEXAS 977,099
SINGLE STORE DEPOSITORY ACCOUNTS 718,676
WELLS FARGO BANK 159,065
BANK ONE, IN 253,785
PNC BANK 893,584
OAK BROOK BANK 1,081,925
CREDIT CARD CASH ACCOUNTS (SALES PROCESSED BY CREDIT CARD COMPANY) 8,130,223
OTHER DEPOSITORY ACCOUNTS
SERVICE MERCHANDISE - MUSCULAR DYSTROPHY ASSOC. 57,006
OTHER CASH ACCOUNTS 130,367
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TOTAL CASH PER GENERAL LEDGER $ 23,913,101
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Page 4
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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: FEBRUARY 26, 2001 THROUGH APRIL 1, 2001
RECEIPTS AND DISBURSEMENTS
(DOLLARS IN THOUSANDS)
ACTUAL ACTUAL ACTUAL ACTUAL ACTUAL TOTAL
Monday 02/26/01 03/05/01 03/12/01 03/19/01 03/26/01 02/26/01
Sunday 03/04/01 03/11/01 03/18/01 03/25/01 04/01/01 04/01/01
-------- -------- -------- -------- -------- --------
Receipts:
Sales receipts $ 18,916 $ 14,305 $ 13,105 $ 13,601 $ 14,950 $ 74,877
Miscellaneous receipts -- 988 -- 356 640 1,984
-------- -------- -------- -------- -------- ---------
Total available collections 18,916 15,293 13,105 13,957 15,590 76,861
Disbursements:
Merchandise disbursements 8,420 9,013 9,549 9,260 11,687 47,929
Non-merchandise disbursements 12,002 14,550 10,779 17,466 14,291 69,088
-------- -------- -------- -------- -------- ---------
Total disbursements 20,422 23,563 20,328 26,726 25,978 117,017
-------- -------- -------- -------- -------- ---------
Net receipts/(disbursements) $ (1,506) $ (8,270) $ (7,223) $(12,769) $(10,388) $ (40,156)
======== ======== ======== ======== ======== =========
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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: FEBRUARY 26, 2001 THROUGH APRIL 1, 2001
ROLLING REVISED CASH FLOW FORECAST
(DOLLARS IN THOUSANDS)
ACTUAL ACTUAL FORECAST FORECAST FORECAST
04/01/01 04/08/01 04/29/01 05/27/01 07/01/01
-------- -------- -------- -------- --------
Ending total revolver balance $195,906 $205,650 $223,302 $210,035 $192,702
Term loan 60,000 60,000 60,000 60,000 60,000
Standby letters of credit 23,895 23,895 23,895 23,895 24,395
Trade letters of credit 19,096 15,767 14,292 14,193 11,328
-------- -------- -------- -------- --------
Total extensions of credit 298,897 305,312 321,489 308,123 288,425
Borrowing base 412,400 414,494 436,884 428,996 406,747
-------- -------- -------- -------- --------
Availability $113,503 $109,182 $115,395 $120,873 $118,322
======== ======== ======== ======== ========
Page 6
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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: February 26, 2001 THROUGH April 1, 2001
4. Payments to Professionals February 26, 2001 through April 1, 2001
VENDOR # VENDOR NAME CHECK AMT. CHECK DATE CHECK #
- ---------------------------------------------------------------------------------------------------------
2642 Waller, Landsden, Dortch & Davis $466.80 02/26/01 50035051
48779 Loss, Pavone & Orel $1,296.00 02/26/01 50035054
57117 Deloitte & Touche $7,157.88 02/26/01 50035055
93547 D'Assaro & Hall $1,654.73 02/26/01 50035059
57117 Deloitte & Touche $4,000.00 02/26/01 50035065
88778 Kenny, Nachwalter, Seymour, Arnold Critchlow & Spector $24.50 02/28/01 50035332
48779 Loss, Pavone & Orel $30.00 02/28/01 50035376
101232 E & Y Capital Advisors, LLC $82,095.00 02/28/01 B0024176
101625 DG Hart Associates, Inc $21,736.19 02/28/01 B0024177
101625 DG Hart Associates, Inc $40,218.93 02/28/01 B0024178
101993 Rothschild, Inc $85,086.96 02/28/01 B0024179
71217 Bass, Berry & Sims $98,526.26 02/28/01 B0024181
98378 Skadden, Arps, Slate, Meagher & Flom $290,725.00 02/28/01 B0024184
99104 Jay Alix & Associates $85,237.49 02/28/01 B0024185
99391 Otterbourg, Steindler, Houston & Rosen, PC $100,902.53 02/28/01 B0024186
99444 Sitrick & Company, Inc. $25,836.78 02/28/01 B0024187
99454 Harwell, Howard, Hyne, Gabbert & Manner, PC $11,415.30 02/28/01 B0024188
50995 Brann & Issacson $942.24 03/01/01 50035489
101730 CBIZ Property Tax Solutions, Inc $9,377.01 03/07/01 50035880
57117 Deloitte & Touche $25,044.83 03/09/01 50036169
102914 Ernst & Young, LLP $5,713.00 03/09/01 50036185
94005 Donald A Blum $5,031.50 03/09/01 50036198
101232 E & Y Capital Advisors, LLC $18,032.00 03/12/01 B0024278
101232 E & Y Capital Advisors, LLC $44,800.00 03/12/01 B0024279
101993 Rothschild, Inc $74,035.59 03/12/01 B0024280
71217 Bass, Berry & Sims $61,009.39 03/12/01 B0024282
98378 Skadden, Arps, Slate, Meagher & Flom $313,507.00 03/12/01 B0024283
99104 Jay Alix & Associates $81,176.64 03/12/01 B0024284
99391 Otterbourg, Steindler, Houston & Rosen, PC $52,777.50 03/12/01 B0024285
99454 Harwell, Howard, Hyne, Gabbert & Manner, PC $20,106.29 03/12/01 B0024286
VENDOR # VENDOR NAME CHECK AMT. CHECK DATE CHECK #
- ---------------------------------------------------------------------------------------------------------
101232 E & Y Capital Advisors, LLC $18,032.00 03/12/01 B0024322
93547 D'Assaro & Hall $3,701.65 03/13/01 50036334
95912 Kightlinger & Gray $484.50 03/13/01 50036337
53703 Barron & Stadfeld, PC $648.45 03/13/01 50036392
67017 Barkley & Thompson $7,667.67 03/13/01 50036393
71403 Seyfarth, Shaw, Fairweather & Geraldson $8,281.84 03/13/01 50036396
80443 Coudert Brothers $387.07 03/13/01 50036397
95913 Lock, Reynolds, Boyd and Weisell $290.06 03/13/01 50036407
96683 Gorr, Moser, Dell & Loughney $615.06 03/13/01 50036408
57117 Deloitte & Touche $18,000.00 03/20/01 50036924
57117 Deloitte & Touche $66,250.00 03/21/01 50037093
47653 Hogem Fenton, Jones & Appel, Inc. $5,000.00 03/27/01 50037526
53703 Barron & Stadfeld, PC $147.50 03/27/01 50037527
53703 Barron & Stadfeld, PC $132.00 03/27/01 50037528
67017 Barkley & Thompson $6,116.47 03/27/01 50037529
67017 Barkley & Thompson $557.00 03/27/01 50037530
67017 Barkley & Thompson $5,000.00 03/27/01 50037531
79366 Feldman & Keiffer $4,107.14 03/28/01 50037852
57117 Deloitte & Touche $113,578.16 03/29/01 50037960
98176 Price Waterhouse Coopers, LLP $81,400.00 03/29/01 50037963
101606 Service Real Estate Venture $207,754.61 03/29/01 B0024395
71217 Bass, Berry & Sims $143,215.62 03/29/01 B0024397
99104 Jay Alix & Associates $133,087.74 03/29/01 B0024398
99444 Sitrick & Company, Inc. $86,159.66 03/29/01 B0024400
101232 E & Y Capital Advisors, LLC $61,399.00 03/30/01 B0024442
101993 Rothschild, Inc $89,578.28 03/30/01 B0024443
98378 Skadden, Arps, Slate, Meagher & Flom $706,455.00 03/30/01 B0024444
99391 Otterbourg, Steindler, Houston & Rosen, PC $196,991.87 03/30/01 B0024445
99454 Harwell, Howard, Hyne, Gabbert & Manner, PC $32,356.68 03/30/01 B0024446
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FORM OPR-1 AND 2
SERVICE MERCHANDISE COMPANY, INC. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS (UNAUDITED)
(DEBTOR-IN-POSSESSION)
(IN THOUSANDS)
April 1, February 25,
2001 2001
----------- ------------
ASSETS
Current Assets:
Cash and cash equivalents $ 23,913 $ 27,927
Accounts receivable 6,298 5,802
Inventories 458,963 436,932
Prepaid expenses and other assets 21,539 12,919
----------- -----------
TOTAL CURRENT ASSETS 510,713 483,580
----------- -----------
PROPERTY AND EQUIPMENT
Owned assets, net of accumulated depreciation 359,539 360,414
Capitalized leases, net of accumulated amortization 11,735 11,945
----------- -----------
TOTAL PROPERTY AND EQUIPMENT 371,274 372,359
----------- -----------
Other assets and deferred charges 57,206 56,653
----------- -----------
TOTAL ASSETS $ 939,193 $ 912,592
=========== ===========
LIABILITIES AND SHAREHOLDERS' (DEFICIT) EQUITY
Liabilities Not Subject To Compromise
Current Liabilities:
Notes payable to banks $ 195,906 $ 155,713
Accounts payable 47,942 31,651
Accrued expenses 126,219 135,634
State & local sales tax 8,288 8,685
Current maturities capitalized leases 95 97
----------- -----------
TOTAL CURRENT LIABILITIES 378,450 331,780
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Page 8
9
FORM OPR-1 AND 2
SERVICE MERCHANDISE COMPANY, INC. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS (UNAUDITED)
(DEBTOR-IN-POSSESSION)
(IN THOUSANDS)
April 1, February 25,
2001 2001
----------- ------------
Long-Term Liabilities:
Long-term debt 60,000 60,000
Capitalized lease obligations 2,372 2,380
Liabilities Subject To Compromise:
Accrued restructuring costs 42,182 42,182
Capitalized lease obligations 21,388 21,651
Long-term debt 413,954 415,372
Accounts payable 198,054 197,901
Accrued expenses 70,828 69,983
----------- -----------
Total Liabilities Subject To Compromise 746,406 747,089
TOTAL LIABILITIES 1,187,228 1,141,249
----------- -----------
COMMITMENTS AND CONTINGENCIES
SHAREHOLDERS' (DEFICIT) EQUITY
Common stock 49,936 49,936
Additional paid-in-capital 5,881 5,881
Deferred compensation (190) (202)
Accumulated other comprehensive loss (2,697) --
Retained (deficit) earnings (300,965) (284,272)
----------- -----------
TOTAL SHAREHOLDERS' (DEFICIT) EQUITY (248,035) (228,657)
TOTAL LIABILITIES AND SHAREHOLDERS' (DEFICIT) EQUITY $ 939,192 $ 912,592
=========== ===========
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10
CHAPTER 11
MONTHLY OPERATING REPORT
CASE NAME: SERVICE MERCHANDISE COMPANY, INC. et. al.
CASE NUMBER: 399-02649 THROUGH 399-02680
PERIOD: FEBRUARY 26, 2001 THROUGH APRIL 01, 2001
SUMMARY OF ACCOUNTS RECEIVABLE
Month Ended: 04/01/01
FORM OPR-3 NOT APPLICABLE
Page 10
11
CHAPTER 11
MONTHLY OPERATING REPORT
MONTHLY REPORTING QUESTIONNAIRE
CASE NAME: SERVICE MERCHANDISE COMPANY, INC. et. al.
CASE NUMBER: 399-02649 THROUGH 399-02680
PERIOD: FEBRUARY 26, 2001 THROUGH APRIL 1, 2001
SCHEDULE OF POST PETITION LIABILITIES-ACCOUNTS PAYABLE
MONTH ENDED: 04/01/2001
FORM OPR-4
Total
---------
Trade Accounts Payable (Merchandise) $ 47,942
Total
---------
Expense & other payables $ 126,219
Page 11
12
CHAPTER 11
MONTHLY OPERATING REPORT
MONTHLY REPORTING QUESTIONNAIRE
CASE NAME: SERVICE MERCHANDISE COMPANY, INC. et. al.
CASE NUMBER: 399-02649 THROUGH 399-02680
PERIOD: FEBRUARY 26, 2001 THROUGH APRIL 1, 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 (84)
-------
SUBTOTAL $ 7,824
-------
Sales/use tax SUBTOTAL * Various Various $ 8,488
-------
Personal property tax * Various Various 1,994
Real estate taxes * Various Various 8,926
Inventory taxes * Various Various 0
Gross receipts/bus licenses * Various Various 106
Franchise taxes * Various Various 526
--------
SUBTOTAL $ 11,552
--------
--------
TOTAL TAXES PAYABLE $ 27,864
========
* 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: FEBRUARY 26, 2001 THROUGH APRIL 1, 2001
SCHEDULE OF POST PETITION LIABILITIES
FORM OPR-4
(DOLLARS IN THOUSANDS)
DATE TOTAL DUE
INCURRED DATE DUE (4/01/01 BALANCE)
------------------------------------------
POST PETITION SECURED DEBT
Revolver borrowings 04/14/00 04/14/04 $ 195,906
Facility standby letters of credit 04/14/00 04/14/04 23,895
Facility trade letters of credit 04/14/00 04/14/04 19,096
Term loans 04/14/00 04/14/04 60,000
---------
TOTAL EXTENSIONS OF CREDIT $ 298,896
=========
ACCRUED INTEREST PAYABLE $ 1,472
=========
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14
FORM OPR-5
SERVICE MERCHANDISE COMPANY, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED)
(DEBTOR-IN-POSSESSION)
(IN THOUSANDS)
ACTIVITY
FEBRUARY 26, 2001
THROUGH
APRIL 1, 2001
-------------
Net Sales $ 67,681
Costs of merchandise sold and buying and occupancy expense 49,085
---------
Gross margin after cost of merchandise sold and buying and occupancy expenses 18,596
Selling, General and Administrative Expenses:
Net Employment Expense 15,055
Net Advertising 3,451
Banking and Other Fees 978
Real Estate and Other Taxes 2,176
Supplies 443
Communication and Equipment 327
Travel 389
UCC and Other Services (667)
Legal and Professional 565
Sales and Shipping 153
Insurance 596
Miscellaneous 200
Credit Card Services (45)
---------
Total Selling, General and Administrative Expenses 23,621
Other expense/(income), net 738
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FORM OPR-5
SERVICE MERCHANDISE COMPANY, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED)
(DEBTOR-IN-POSSESSION)
(IN THOUSANDS)
Restructuring charge (credit) --
Depreciation and amortization 4,019
---------
Earnings (loss) before interest, reorganization items, and income tax (9,782)
Interest expense - debt 3,687
Interest expense - capitalized leases 268
---------
Earnings (loss) before reorganization items, and income tax (13,737)
Reorganization Items:
Legal and Professional 2,309
Miscellaneous 248
Loss (Gain) on Disposal of Assets 399
Close Store Charges --
---------
Total Reorganization Items 2,956
Earnings (loss) before income tax (16,693)
Income tax benefit --
Cumulative Effect of Change in Accounting Principles --
---------
Net earnings (loss) $ (16,693)
=========
Page 15