Exhibit 99.1
UNITED STATES BANKRUPTCY COURT
FOR THE EASTERN DISTRICT OF NEW YORK
IN RE: CHAPTER 11
INTERNATIONAL TOTAL SERVICES, INC., CASE NOS. 01-21812, 01-21818,
CROWN TECHNICAL SYSTEMS, INC., 01-21820, 01-21822, 01-21824,
I.T.S. OF NEW YORK SECURITY, INC., 01-21826, 01-21827 (CD)
SELECTIVE DETECTIVE SERVICES, INC.,
T.I.S., INCORPORATED, JOINTLY ADMINISTERED UNDER
CERTIFIED INVESTIGATIVE SERVICES, INC., AND CASE NO. 101-21812
TEXAS INTERNATIONAL SERVICES CORP.,
INTERNATIONAL TOTAL SERVICES, INC.
DEBTORS AND DEBTORS-IN-POSSESSION. FEDERAL TAX ID #: 34-1264201
MONTHLY OPERATING REPORT
REPORTING PERIOD: NOVEMBER 1, 2002 THROUGH NOVEMBER 30, 2002
FILE WITH THE COURT AND SUBMIT A COPY TO THE UNITED STATES TRUSTEE WITHIN 20
DAYS AFTER THE END OF THE MONTH AND SUBMIT A COPY OF THE REPORT TO ANY OFFICIAL
COMMITTEE APPOINTED IN THE CASE.
REQUIRED DOCUMENTS Document Explanation
Form No. Attached Attached
Schedule of Cash Receipts and Disbursements MOR-1 Yes See Exhibit A
Bank Reconciliation (or copies of debtor's MOR-1 (CONT) Yes See Exhibit B
bank reconciliations)
Copies of bank statements Yes See Exhibit C
Cash disbursement journals Yes See Exhibit A
Statement of Operations MOR-2 Yes See Exhibit D
Balance Sheet MOR-3 Yes See Exhibit E
Status of Post-petition Taxes MOR-4 Yes See Exhibit F
Copies of ITS Form 6123 or payment N/A
Receipt
Copies of tax returns filed during reporting N/A
Period
Summary of Unpaid Post-petition Debts MOR-4 Yes See Exhibit G
Listing of aged Accounts Payable Yes See Exhibit G
Accounts Receivable Reconciliation and Aging MOR-5 Yes See Exhibits H and I
Debtor Questionnaire MOR-5 Yes
I declare under penalty of perjury (28 U.S.C. Section 1746) that this report and
the attached documents are true and correct to the best of my knowledge and
belief.
/s/ Ron Koegler January 2, 2003
- ------------------------------------- ------------------------
Ron Koegler, Executive Vice President Date
and Controller
PRE-BOARD SCREENING
CONCENTRATION ACCOUNT
NOVEMBER, 2002
11/4/2002 IMMEDIATE FUNDS DEBIT (3,000,000.00)
(3,000,000.00)
11/8/2002 ACH-TSA TREAS 220 RMR*IV*9**16507846.3/ 16,507,846.30
11/8/2002 Deposit 4,063.27
16,511,909.57
11/12/2002 IMMEDIATE FUNDS DEBIT (3,000,000.00)
(3,000,000.00)
11/13/2002 PREAUTHORIZED TRANSFER BY YOU (4,063.27)
(4,063.27)
11/18/2002 IMMEDIATE FUNDS DEBIT (3,000,000.00)
11/18/2002 Deposit TLR Br#: 920 TID:20 153 EAST 53RD ST,NY,NY 1,000,000.00
(2,000,000.00)
11/19/2002 IMMEDIATE FUNDS DEBIT (1,000,000.00)
(1,000,000.00)
11/25/2002 IMMEDIATE FUNDS DEBIT (3,000,000.00)
(3,000,000.00)
11/29/2002 INTEREST EARNED 15,675.54
15,675.54
PRE-BOARD SCREENING
CONCENTRATION ACCOUNT II
NOVEMBER, 2002
11/7/2002 WIRE FROM SMS ACQUISITION I110702 91,632.08
91,632.08
11/13/2002 TRANSFER FROM IMR ACCT.# 6526791 4,063.27
11/13/2002 Deposit 3,970.18
8,033.45
11/19/2002 Deposit 7,165.88
7,165.88
11/25/2002 Deposit 929.65
929.65
11/29/2002 INTEREST EARNED 1,610.55
1,610.55
CITIBANK
PRE-BOARD SCREENING
ACCOUNTS PAYABLE - 06526783
NOVEMBER, 2002
11/1/2002 TOTAL (52,319.52)
11/4/2002 TOTAL (154,406.22)
11/5/2002 TOTAL (50,592.16)
11/6/2002 TOTAL (100,723.08)
11/7/2002 TOTAL (60,226.14)
11/8/2002 TOTAL (83,654.03)
11/12/2002 TOTAL (178,211.34)
11/13/2002 TOTAL (67,368.57)
11/14/2002 TOTAL (107,129.16)
11/15/2002 TOTAL (50,231.65)
11/18/2002 TOTAL (41,116.15)
11/19/2002 TOTAL (51,943.13)
11/20/2002 TOTAL (65,702.14)
11/21/2002 TOTAL (52,645.59)
11/22/2002 TOTAL (87,994.57)
11/25/2002 TOTAL (157,201.88)
11/26/2002 TOTAL (249,681.78)
11/27/2002 TOTAL (67,285.82)
11/29/2002 TOTAL (35,958.41)
GRAND TOTAL (1,714,176.34)
CITIBANK
PRE-BOARD SCREENING
ACCOUNTS PAYABLE - 06526783
NOVEMBER, 2002
11/15/2002 ACH-GEORGIA WITHHOLPAYMNT1115021165/067214 (60,311.18)
11/1/2002 ACH-IRS USATAXPYMT11010222023051409380 (840,012.02)
11/6/2002 ACH-IRS USATAXPYMT11060222023106354774 (2,470.53)
11/8/2002 ACH-IRS USATAXPYMT11080222023125662559 (485,556.87)
11/13/2002 ACH-IRS USATAXPYMT11130222023172382999 (1,874.52)
11/15/2002 ACH-IRS USATAXPYMT11150222023196987275 (648,163.76)
11/20/2002 ACH-IRS USATAXPYMT11200222023249770304 (39,097.03)
11/21/2002 ACH-IRS USATAXPYMT11210222023258765227 (362,091.55)
11/22/2002 ACH-IRS USATAXPYMT11220222023269603375 (150,342.54)
11/29/2002 ACH-IRS USATAXPYMT11290222023332488127 (334,985.02)
11/20/2002 ACH-MN DEPT REVENUE5548570*002*021031*T*000023689 (2,368.98)
11/15/2002 ACH-MN DEPT REVENUE5548570*004*021114*T*000012027 (1,202.73)
11/22/2002 ACH-MN DEPT REVENUE5548570*004*021121*T*000003356 (335.68)
11/6/2002 ACH-NEW JERSEY EFT TTXP*B341264201000*01170*02123 (213.16)
11/21/2002 ACH-SALES & USE TAXTXP*890757966*04200*021031*T*0 (5,676.37)
11/14/2002 ACH-STATE OF HAWAIITXP*10512733*01130*021001*T*00 (46,517.40)
11/21/2002 ACH-STATE OF HAWAIITXP*10512733*04610*021001*T*00 (28,194.03)
11/15/2002 ACH-WI DEPT REVENUETXP*423212-0*01102*021031*T*00 (2,937.97)
11/29/2002 ACH-WI DEPT REVENUETXP*423212-0*01102*021115*T*00 (2,126.87)
11/1/2002 ACH-WITHHOLDING TAXTXP*515275873*01101*021031*T*0 (7,565.61)
11/22/2002 ACH-WITHHOLDING TAXTXP*515275873*01101*021121*T*0 (5,674.28)
11/25/2002 Deposit TLR Br#: 920 TID:05 153 EAST 53RD ST,NY,NY 1,000,000.00
11/4/2002 Deposit TLR Br#: 920 TID:15 153 EAST 53RD ST,NY,NY 1,000,000.00
11/12/2002 Deposit TLR Br#: 920 TID:18 153 EAST 53RD ST,NY,NY 1,000,000.00
11/19/2002 Deposit TLR Br#: 920 TID:20 153 EAST 53RD ST,NY,NY 1,000,000.00
11/26/2002 DOMESTIC FUNDS TRANSFER-CITIBUSINESS O/L (6,226.75)
11/21/2002 DOMESTIC FUNDS TRANSFER-CITIBUSINESS O/L (203,162.99)
11/19/2002 DOMESTIC FUNDS TRANSFER-CITIBUSINESS O/L (127,478.06)
11/19/2002 DOMESTIC FUNDS TRANSFER-CITIBUSINESS O/L (6,577.98)
11/13/2002 DOMESTIC FUNDS TRANSFER-CITIBUSINESS O/L (11,022.30)
11/13/2002 DOMESTIC FUNDS TRANSFER-CITIBUSINESS O/L (6,249.89)
11/5/2002 DOMESTIC FUNDS TRANSFER-CITIBUSINESS O/L (6,062.75)
11/5/2002 DOMESTIC FUNDS TRANSFER-CITIBUSINESS O/L (2,946.50)
CITIBANK
PRE-BOARD SCREENING
PAYROLL ACCOUNT - 06526759
NOVEMBER, 2002
CHECK CLEARINGS
11/1/2002 TOTAL (569,732.45)
11/4/2002 TOTAL (989,885.62)
11/5/2002 TOTAL (323,287.53)
11/6/2002 TOTAL (227,927.08)
11/7/2002 TOTAL (115,670.51)
11/8/2002 TOTAL (175,053.26)
11/12/2002 TOTAL (315,372.97)
11/13/2002 TOTAL (129,117.30)
11/14/2002 TOTAL (127,666.12)
11/15/2002 TOTAL (476,967.52)
11/18/2002 TOTAL (863,277.18)
11/19/2002 TOTAL (344,229.76)
11/20/2002 TOTAL (182,733.90)
11/21/2002 TOTAL (135,805.91)
11/22/2002 TOTAL (290,835.24)
11/25/2002 TOTAL (568,052.02)
11/26/2002 TOTAL (166,891.68)
11/27/2002 TOTAL (162,743.80)
11/29/2002 TOTAL (691,734.54)
GRAND TOTAL (6,856,984.39)
11/6/2002 DOMESTIC FUNDS TRANSFER - CBUSOL (100,000.00)
11/13/2002 DOMESTIC FUNDS TRANSFER-CITIBUSINESS O/L (100,000.00)
11/20/2002 DOMESTIC FUNDS TRANSFER-CITIBUSINESS O/L (100,000.00)
11/27/2002 DOMESTIC FUNDS TRANSFER-CITIBUSINESS O/L (100,000.00)
11/4/2002 Deposit TLR Br#: 920 TID:15 153 EAST 53RD ST,NY,NY 2,000,000.00
11/12/2002 Deposit TLR Br#: 920 TID:18 153 EAST 53RD ST,NY,NY 2,000,000.00
11/18/2002 Deposit TLR Br#: 920 TID:20 153 EAST 53RD ST,NY,NY 2,000,000.00
11/25/2002 Deposit TLR Br#: 920 TID:05 153 EAST 53RD ST,NY,NY 2,000,000.00
INTERNATIONAL TOTAL SERVICES, INC & SUBSIDIARIES
CONSOLIDATED STATEMENT OF OPERATIONS
For the Month of November, Eight Months ending November 30, 2002 and the
Period from Filing Date to November 30, 2002
(Excluding United Kingdom Subsidiaries)
Debtors Case #
------------ ---------------------
International Total Services, Inc. 01-21812 CBD
Crown Technical Systems, Inc. 01-21827 CBD
ITS of New York Security Inc. 01-21818 CBD
Selective Detective Services, Inc. 01-21822 CBD
TIS Incorporated 01-21826 CBD
Certified Investigative Services, Inc. 01-21824 CBD
Texas International Services Corp. 01-21820 CBD
9/13/2001 to
November 30, 2002
Eight Months Ended Cumulative
Current Period November 30, 2002 Filing to Date
--------------------- ------------------- ------------------------
Revenues
- ------------------------
Aviation Services $ 6,086,354 $ 112,274,912 $ 215,030,670
Security Services - 2,991,921 24,758,865
--------------------- ------------------- ------------------------
6,086,354 115,266,833 239,789,535
--------------------- ------------------- ------------------------
Direct Costs
- ------------------------
Aviation Services 5,619,666 107,627,551 199,196,612
Security Services - 2,361,010 20,339,896
--------------------- ------------------- ------------------------
5,619,666 109,988,561 219,536,508
--------------------- ------------------- ------------------------
Gross Margin
- ------------------------
Aviation Services 466,688 4,647,361 15,834,058
Security Services - 630,911 4,418,969
--------------------- ------------------- ------------------------
466,688 5,278,272 20,253,027
--------------------- ------------------- ------------------------
General & Administrative
- ------------------------
Salaries 486,541 4,538,236 9,906,504
Payroll Taxes & Benefits 121,400 1,904,996 2,666,845
Supplies 21,024 247,983 701,240
Insurance - 408,319 613,653
Training & Recruiting Costs (4,272) 2,493 82,246
Rent - Facilities 49,705 518,468 1,268,776
Telephone/Communications 31,297 421,778 1,110,236
Rent - Equipment 9,923 148,062 377,245
Maintenance - 12,686 37,918
Travel 48,454 503,569 1,313,615
Professional Fees 179,985 999,086 2,671,873
Bad Debt Expense - - 1,352,000
Federal administrative cost reimbursement (2,000,000) (16,000,000) (18,789,041)
Other Expenses 2,476 266,840 1,558,635
--------------------- ------------------- ------------------------
(1,053,467) (6,027,484) 4,871,745
--------------------- ------------------- ------------------------
--------------------- ------------------- ------------------------
Income from Operations 1,520,155 11,305,756 15,381,282
--------------------- ------------------- ------------------------
Interest (1,611) (1,300,665) 27,168
Depreciation 150,393 1,052,558 1,696,922
Gains on Sale of Non Pre-Board and Commercial Security - (2,546,684) (2,546,684)
Loss on Sale of UK subsidiary - 1,901,237 1,901,237
Reorganization Expenses Related to Ch. 11 408,572 2,287,533 4,026,700
--------------------- ------------------- ------------------------
Income Before Taxes 962,801 9,911,777 10,275,939
--------------------- ------------------- ------------------------
Provision for Taxes - (367,010) (1,716,010)
--------------------- ------------------- ------------------------
Net Income $ 962,801 10,278,787 $ 11,991,949
===================== =================== ========================
INTERNATIONAL TOTAL SERVICES, INC & SUBSIDIARIES
CONSOLIDATED BALANCE SHEET
as of Petition Date and November 30, 2002
(Excluding United Kingdom Subsidiaries)
Debtors Case #
------- -------
International Total Services, Inc. 01-21812 CBD
Crown Technical Systems, Inc. 01-21827 CBD
ITS of New York Security Inc. 01-21818 CBD
Selective Detective Services, Inc. 01-21822 CBD
TIS Incorporated 01-21826 CBD
Certified Investigative Services, Inc. 01-21824 CBD
Texas International Services Corp. 01-21820 CBD
Balance Balance
November 30, 2002 on Petition date
------------------------- ------------------------
CURRENT ASSETS
Cash and Equivalents $ 1,800,046 $ 59,886
Restricted Customer Deposits 19,888,740 -
Accounts Receivable - Net 28,712,000 26,227,540
Notes Receivable - -
Inventories - 902,137
Prepaid Expenses 444,853 706,982
Professional Retainers - 200,000
Other Current assets
Intercompany receivable - United Kingdom subsidiary - 2,783,921
Workers Compensation - funding in excess of projected losses - 1,095,261
------------------------- ------------------------
- 3,879,182
------------------------- ------------------------
Total Current Assets 50,845,639 31,975,727
------------------------- ------------------------
PROPERTY AND EQUIPMENT
Real Property and Improvements - -
Machinery and other office equipment 2,062,963 3,855,175
Furniture, Fixtures and Office Equipment 3,367,474 4,809,046
Leasehold Improvements 63,454 63,454
Vehicles 24,668 793,320
Less: Accum Depr (5,518,559) (7,283,674)
------------------------- ------------------------
Total Property and Equipment - 2,237,321
Other Assets - Deposits 122,902 113,192
------------------------- ------------------------
TOTAL ASSETS $ 50,968,541 $ 34,326,240
========================= ========================
LIABILITIES AND STOCKHOLDERS' EQUITY
LIABILITIES NOT SUBJECT TO COMPROMISE
Accounts Payable 145,598 -
Taxes Payable 1,193,572 1,866,688
Wages Payable 1,175,518 9,432,472
Notes Payable - -
Secured Debt - -
Professional fees - -
Customer Deposits 29,500,000 -
Accrued Interest Payable - -
Other Post Petition Liabilities 10,538,406 1,007,623
------------------------- ------------------------
Total Post Petition liabilities 42,553,094 12,306,783
LIABILITIES SUBJECT TO COMPROMISE
Secured Debt - 25,920,430
Priority 1,148,749 1,151,429
Unsecured 8,494,851 8,385,217
Unsecured reserves for unliquidated claims 5,852,267 5,674,500
------------------------- ------------------------
Total Pre-Petition Liabilities 15,495,867 41,131,576
------------------------- ------------------------
Total Liabilities 58,048,961 53,438,359
------------------------- ------------------------
STOCKHOLDER'S EQUITY
Capital Stock 63,762 63,762
Additional Paid in Capital 31,320,074 31,280,324
Retained Earnings (38,464,256) (50,456,205)
------------------------- ------------------------
Total Equity (7,080,420) (19,112,119)
------------------------- ------------------------
------------------------- ------------------------
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY $ 50,968,541 $ 34,326,240
========================= ========================
DEBTOR QUESTIONNAIRE
Must be completed each month Yes No
1. Have any assets been sold or transferred outside the normal course of business this reporting X
period? If yes, provide an explanation below:
2. Have any funds been disbursed from any account other than a debtor in possession account this X
reporting period? If yes, provide an explanation below:
3. Have all post-petition tax returns been timely filed? If no, provide an explanation below: X
4. Are worker compensation, general liability and other necessary insurance coverages in effect? If X
no, provide an explanation below:
#1. Assets related to the Company's Aviation Division, Non Pre-Board Screening
segment were sold with the approval of the Court, effective 4/1/02. Assets
related to the Company's Commercial Security Division were sold with the
approval of the Court effective 4/29/02.