EXHIBIT 99
UNITED STATES BANKRUPTCY COURT
EASTERN DISTRICT OF PENNSYLVANIA
In re: Quad Systems Corporation Case No. 00-35667
------------------------ Reporting Period: 4/01/01 to 4/30/01
Debtor
MONTHLY OPERATING REPORT
File with Court and submit copy to United States Trustee within
20 days after end of month
Submit copy of report to any official committee appointed in this case
Document Explanation
REQUIRED DOCUMENTS Form No. Attached Attached
- -------------------------------------------------------------------------------------------------------------------------------
Schedule of Cash Receipts and Disbursements MOR-1 X
Bank Reconciliation (or copies of debtor's bank reconciliations) MOR-1 (CONT) X X
Copies of bank statements X
Cash disbursement journals X X
Statement of Operations MOR-2 X
Balance Sheet MOR-3 X
Status of Postpetition Taxes MOR-4 X
Copies of IRS Form 6123 or payment receipt X
Copies of tax returns filed during reporting period X
Summary of Unpaid Postpetition Debts MOR-4 X
Listing of aged accounts payable X
Accounts Receivable Reconciliation and Aging MOR-5 X
Debtor Questionnaire MOR-5 X
I declare under penalty of perjury (28 U.S.C. Section 1746) that this report and
the documents attached are true and correct to the best of my knowledge and
belief.
- ------------------------------------- -------------------------------
Signature of Debtor Date
- ------------------------------------- -------------------------------
Signature of Joint Debtor Date
/s/ Anthony R. Drury May 17, 2001
- ------------------------------------- -------------------------------
Signature of Authorized Individual* Date
Anthony R. Drury Sr. Vice President, Finance
- ------------------------------------- -------------------------------
Printed Name of Authorized Individual Title of Authorized Individual
*Authorized individual must be an officer, director or shareholder if debtor is
a corporation; a partner if debtor is a partnership; a manager or member if
debtor is a limited liability company.
FORM MOR
(9/99)
EXHIBIT 99
UNITED STATES BANKRUPTCY COURT
EASTERN DISTRICT OF PENNSYLVANIA
In re: Quad Systems Corporation Case No. 00-35667
------------------------ Reporting Period: 4/01/01-4/30/01
Debtor
SCHEDULE OF CASH RECEIPTS AND DISBURSEMENTS
Amounts reported should be per the debtor's books, not the bank statement.
The beginning cash should be the ending cash from the prior month or, if this is
the first report, the amount should be the balance on the date the petition was
filed. The amounts reported in the "CURRENT MONTH - ACTUAL" column must equal
the sum of the four bank account columns. The amounts reportedin the "PROJECTED"
columns should be taken from the SMALL BUSINESS INITIAL REPORT (FORM IR-1).
Attach copies of the bank statements and the cash disbursement journal. The
total disbursements listed in the disbursement journal must equal the total
disbursements reported on this page. A bank reconciliation must be attached for
each account. [See MOR-1 (CON'T)]
CUMULATIVE FILING
BANK ACCOUNTS CURRENT MONTH TO DATE
OPER PAYROLL Canada P/R Lockbox ACTUAL PROJECTED ACTUAL PROJECTED
- -----------------------------------------------------------------------------------------------------------------------------------
Cash Beginning of Month 320,639 54,437 849 34,960 410,885 277,400 977,761 977,761
RECEIPTS
Cash Sales
Accounts Receivable 2,301,000 2,301,000 1,427,000 12,176,089 7,832,000
Loans and Advances 1,465,000 1,465,000 1,675,000 8,645,000 9,542,000
Sale of Assets - 6,800 -
Other (Attach List) 7,323 7,323 - 154,783 -
Transfers (From DIP Accts) 500,000 6,705 506,705 - 1,900,778 -
- -----------------------------------------------------------------------------------------------------------------------------------
TOTAL RECEIPTS 1,465,000 500,000 6,705 2,308,323 4,280,028 3,102,000 22,883,450 17,374,000
- -----------------------------------------------------------------------------------------------------------------------------------
DISBURSEMENTS
Net Payroll 43,731 446,741 3,528 494,000 510,000 2,989,942 2,992,000
Payroll Taxes 103,901 39,694 405 144,000 128,000 699,142 651,000
Sales, Use & Other Taxes 9,000 9,000 26,000 86,000 104,000
Inventory Purchases 364,000 364,000 300,000 2,890,000 3,830,000
Secured Rental/Leases 80,000 80,000 78,000 298,000 315,000
Insurance 67,000 67,000 88,000 173,000 411,000
Administrative 78,260 1,324 160 79,744 106,000 251,885 669,000
Selling 66,000 66,000 67,000 435,000 504,000
Other (Attach List) 192,000 2,292,846 2,484,846 1,789,000 13,687,846 10,564,000
Owner Draw*
Transfers (To DIP Accts) 506,705 506,705 - 1,900,778 -
Professional Fees - - 50,000 50,000
U.S. Trustee Quarterly Fees 10,000 10,000 10,000 14,000 14,000
Court Costs
- -----------------------------------------------------------------------------------------------------------------------------------
TOTAL DISBURSEMENTS 1,520,597 487,759 4,093 2,292,846 4,305,295 3,102,000 23,475,593 20,104,000
- -----------------------------------------------------------------------------------------------------------------------------------
NET CASH FLOW (55,597) 12,241 2,612 15,477 (25,267) - (592,143) (2,730,000)
- -----------------------------------------------------------------------------------------------------------------------------------
CASH - END OF MONTH 265,042 66,678 3,461 50,437 385,617 277,400 385,618 (1,752,239)
- -----------------------------------------------------------------------------------------------------------------------------------
*Compensation to sole proprietors for services rendered to bankruptcy estate
Note: In order to be consistent with our Budgets the line above labeled "Net
Payroll" includes the gross salaries. In addition the line above
labeled "Payroll Taxes" also includes all fringe benefit disbursements.
THE FOLLOWING SECTION MUST BE COMPLETED
Disbursements for calculating U.S. Trustee Quarterly Fees (From Current Month Actual Column)
Total Disbursements 4,305,295
Less: Transfers to Debtor in Possession Accounts (506,705)
Plus: Estate Disbursements made by outside sources (I.e. from escrow account) -
----------
Total Disbursements for Calculating U.S. Trustee Quarterly Fees 3,798,590
==========
FORM MOR-1
(9/99)
EXHIBIT 99
UNITED STATES BANKRUPTCY COURT
EASTERN DISTRICT OF PENNSYLVANIA
Quad Systems Corporation Case No. 00-35667
Schedule MOR 1 Reporting Period: 2/01/01-2/28/01
Continuation Sheet
Current Month Cummulative
Actual Projected Actual Projected
Explanation of Other Income
- ---------------------------
Adj of Prior Month Pre Pet. Voids (8,500) - 37,500 -
Rental of Parking Lot 1,000 - 2,000 -
Misc COBRA pmts/refunds 1,700 - 5,700 -
-------------------------------- -------------------------------
Total (5,800) 0 45,200 0
================================ ===============================
Explanation of Other Disbursements
- ----------------------------------
Congress Repayments 2,610,000 2,336,000 7,203,000 4,451,000
First Union Loan Repayments - - 155,000 155,000
Interest Expense 3,000 4,000 7,000 8,000
Commissions 182,000 175,000 182,000 249,000
Engineering 2,000 11,000 2,000 14,000
QEL Requirements 300,000 375,000 300,000 400,000
-------------------------------- -------------------------------
Total 3,097,000 2,901,000 7,849,000 5,277,000
================================ ===============================
EXHIBIT 99
UNITED STATES BANKRUPTCY COURT
EASTERN DISTRICT OF PENNSYLVANIA
Quad Systems Corporation Case No. 00-35667
Schedule MOR 1 Reporting Period: 2/01/01-2/28/01
Continuation Sheet
Current Month Cummulative
Actual Projected Actual Projected
Explanation of Other Income
- ---------------------------
Adj of Prior Month Pre Pet. Voids - 0 37,500 -
Rental of Parking Lot - 0 4,000 -
Misc COBRA pmts/refunds 7,323 0 21,283 -
Insurance Claim - 0 92,000 92,000
--------- --------- ---------- ----------
Total 7,323 0 154,783 0
========= ========= ========== ==========
Explanation of Other Disbursements
- ----------------------------------
Congress Repayments 2,292,846 1,427,000 12,633,846 8,650,000
First Union Loan Repayments 0 155,000 155,000 310,000
Interest Expense 4,000 3,000 13,000 14,000
Commissions 188,000 175,000 434,000 907,000
Engineering 0 29,000 2,000 83,000
QEL Requirements 0 - 450,000 600,000
--------- --------- ---------- ----------
Total 2,484,846 1,789,000 13,687,846 10,564,000
========= ========= ========== ==========
EXHIBIT 99
UNITED STATES BANKRUPTCY COURT
EASTERN DISTRICT OF PENNSYLVANIA
In re: Quad Systems Corporation Case No. 00-35667
------------------------ Reporting Period: 4/01/01-4/30/01
Debtor
STATEMENT OF OPERATIONS
(Income Statement)
The Statement of Operations is to be prepared on an accrual basis. The accrual
basis of accounting recognizes revenue when it is realized and expenses when
they are incurred, regardless of when cash is actually received or paid.
REVENUES Month Cumulative Filing to Date
- -------- ----- -------------------------
Gross Revenues $ 1,606,695 $ 12,929,506
Less: Returns and Allowances - -
------------ ------------
Net Revenue 1,606,695 12,929,506
COST OF GOODS SOLD
Beginning Inventory 10,723,341 15,046,970
Add: Purchases 458,331 3,204,990
Add: Cost of Labor 52,758 288,158
Add: Other Costs (attach schedule) 336,860 1,562,662
Less: Ending Inventory 10,314,636 10,314,636
Cost of Goods Sold 1,256,654 9,788,144
------------ ------------
Gross Profit 350,041 3,141,362
Advertising (2,967) 47,650
Auto and Truck Expense - -
Bad Debts - 52,000
Contributions - -
Employee Benefit Programs 26,059 89,951
Insider Compensation* - -
Insurance 34,700 141,717
Management Fees/Bonuses - -
Office Expense 52,900 79,054
Pension & Profit-Sharing Plans - -
Repairs and Maintenance 13,183 42,070
Rent and Lease Expense 60,874 261,028
Salaries/Commissions/Fees 358,389 2,326,275
Supplies 7,025 (9,688)
Taxes - Payroll 39,542 268,832
Taxes - Real Estate 2,275 8,805
Taxes - Other 4,131 (15,622)
Travel and Entertainment 69,446 313,601
Utilities 17,807 111,936
Other (attach schedule) 44,283 488,250
------------ ------------
Total Operating Expenses Before Depreciation 727,647 4,205,859
Depreciation/Depletion/Amortization 37,893 161,282
------------ ------------
Net Profit (Loss) Before Other Income & Expenses (415,499) (1,225,779)
OTHER INCOME AND EXPENSES
Other Income (attach schedule) -
Interest Expense 21,878 435,883
Other Expense (attach schedule) -
------------ ------------
Net Profit (Loss) Before Reorganization Items (437,377) (1,661,662)
REORGANIZATION ITEMS -
Professional Fees 50,000
U.S. Trustee Quarterly Fees 10,000 14,000
Interest Earned on Accumulated Cash from Chapter 11
(see continuation sheet) -
(Gain)/Loss from Sale of Equipment 836
Other Reorganization Expenses (attach schedule) -
------------ ------------
Total Reorganization Expenses 10,000 64,836
Income Taxes (175,754)
------------ ------------
Net Profit (Loss) (447,377) (1,550,744)
============ ============
*"Insider" is defined in 11 U.S.C. Section 101(31).
FORM MOR-2
(9/99)
EXHIBIT 99
UNITED STATES BANKRUPTCY COURT
EASTERN DISTRICT OF PENNSYLVANIA
In re: Quad Systems Corporation Case No. 00-35667
------------------------ Reporting Period: 4/01/01-4/30/01
Debtor
STATEMENT OF OPERATIONS - continuation sheet
Cumulative
BREAKDOWN OF OTHER CATEGORY Month Filing to Date
- -------------------------------------------------------------------
Other Costs
Overhead Absorption 190,968 1,036,968
Service Labor Costs 64,239 280,273
Warranty Costs 156,087 441,927
Non-Inventory Reserve Expenses (74,434) (196,506)
------- ---------
Total 336,860 1,562,662
======= =========
Other Operational Expenses
Freight 12,077 58,493
Bank Charges & LOC Fees 3,032 121,438
Professional Fees 29,174 52,480
Patent Royalties - 255,839
------- ---------
Total 44,283 488,250
======= =========
Other Income
Other Expenses
Other Reorganization Expenses
Reorganization Items - Interest Earned on Accumulated Cash from Chapter 11:
Interest earned on cash accumulated during the chapter 11 case, which would not
have been earned but for the bankruptcy proceeding, should be reported as a
reorganization item.
FORM MOR-2 (CONT)
(9/99)
EXHIBIT 99
UNITED STATES BANKRUPTCY COURT
EASTERN DISTRICT OF PENNSYLVANIA
In re: Quad Systems Corporation Case No. 00-35667
------------------------ Reporting Period: 4/01/01-4/30/01
Debtor
BALANCE SHEET
The Balance Sheet is to be completed on an accrual basis only. Pre-petition
liabilities must be classified separately from postpetition obligations.
BOOK VALUE
AT END OF BOOK VALUE
CURRENT ON
REPORTING PETITION
ASSETS MONTH DATE
- ---------------------------------------------------------------------------------------------------
Unrestricted Cash and Equivalents 247,359 161,799
Restricted Cash and Cash Equivalents (see continuation sheet) 73,151 815,962
Accounts Receivable (Net) 2,725,681 3,130,385
Notes Receivable - -
Inventories 10,314,636 15,046,970
Prepaid Expenses 199,708 433,952
Professional Retainers - -
Other Current Assets (attach schedule) 447,816 (325,421)
---------- ----------
TOTAL CURRENT ASSETS 14,008,351 19,263,647
---------- ----------
PROPERTY AND EQUIPMENT
Real Property and Improvements 177,958 276,575
Machinery and Equipment 1,716,773 2,124,028
Furniture, Fixtures and Office Equipment 2,154,232 3,210,503
Leasehold Improvements 330,078 330,078
Vehicles 19,142 30,594
---------- ----------
Less Accumulated Depreciation 3,141,527 4,324,223
---------- ----------
TOTAL PROPERTY & EQUIPMENT 1,256,656 1,647,555
---------- ----------
OTHER ASSETS
Loans to Insiders*
Other Assets (attach schedule) 694,818 1,054,423
---------- ----------
TOTAL OTHER ASSETS 694,818 1,054,423
---------- ----------
TOTAL ASSETS 15,959,825 21,965,625
========== ==========
BOOK VALUE
AT END OF BOOK VALUE
CURRENT ON
REPORTING PETITION
LIABILITIES AND OWNER EQUITY MONTH DATE
- ----------------------------------------------------------------------------------------------------
LIABILITIES NOT SUBJECT TO COMPROMISE (Postpetition)
Accounts Payable 101,140 8,246,757
Taxes Payable (refer to FORM MOR-4) 364,392 370,167
Wages Payable 201,864 671,333
Notes Payable - -
Rent/Leases - Building/Equipment 114,038 220,133
Secured Debt / Adequate Protection Payments 2,445,129 6,317,257
Professional Fees - -
Amounts Due to Insiders* - -
Other Postpetition Liabilities (attach schedule) 2,633,726 3,861,109
---------- ----------
TOTAL POSTPETITION LIABILITIES 5,860,289 19,686,756
---------- ----------
LIABILITIES SUBJECT TO COMPROMISE (Pre-Petition)
Secured Debt
Priority Debt 182,489 -
Unsecured Debt 9,188,922 -
---------- ----------
TOTAL PRE-PETITION LIABILITIES 9,371,411 -
---------- ----------
TOTAL LIABILITIES 15,231,700 19,686,756
---------- ----------
OWNER EQUITY
Capital Stock 135,531 135,531
Additional Paid-In Capital 24,733,708 24,733,708
Partners' Capital Account - -
Owner's Equity Account - -
Retained Earnings - Pre-Petition (22,590,370) (22,590,370)
Retained Earnings - Postpetition (1,550,744) -
Adjustments to Owner Equity (attach schedule) - -
Postpetition Contributions (Distributions)
(Draws) (attach schedule) - -
---------- ----------
NET OWNER EQUITY 728,125 2,278,869
---------- ----------
TOTAL LIABILITIES AND OWNERS EQUITY 15,959,825 21,965,625
========== ==========
*"Insider" is defined in 11 U.S.C. Section 101(31).
FORM MOR-3
(9/99)
EXHIBIT 99
UNITED STATES BANKRUPTCY COURT
EASTERN DISTRICT OF PENNSYLVANIA
In re: Quad Systems Case No. 00-35667
------------ Reporting Period: 4/01/01-4/30/01
Debtor
BALANCE SHEET - continuation sheet
BOOK VALUE
AT END OF BOOK VALUE
CURRENT ON
REPORTING PETITION
ASSETS MONTH DATE
- ------------------------------------------------------------------------------------------
Other Current Assets
Accts Rec - Misc 198,478 537
Temp. Empl Advances 4,880 43,891
Permanent Advances 921 921
Deposits 211,360 40,437
Interco - Current 32,177 (411,207)
Other Assets
Acquisition Costs - QEL 7,062 8,598
Patent Costs 1,677 1,977
Invest - BIMARK/QFSC 4,026,831 4,026,831
Invest - QEL 2,500,000 2,500,000
Interco - Long Term (10,503,031) (10,145,262)
Invest - SMTECH 4,662,279 4,662,279
BOOK VALUE
AT END OF BOOK VALUE
CURRENT ON
REPORTING PETITION
LIABILITIES AND OWNER EQUITY MONTH DATE
- -------------------------------------------------------------------------------------------
Other Postpetition Liabilities
Deferred Revenue 1,053,907 1,151,531
Customer Deposits 127,744 416,644
Accrued Expenses 1,115,014 1,872,647
Commission Payable 337,061 420,287
Restricted Cash: cash that is restricted for a specific use and not available to
fund operations. Typically, restricted cash is segregated into a separate
account, such as an escrow account.
FORM MOR-3 (CONT)
(9/99)
EXHIBIT 99
UNITED STATES BANKRUPTCY COURT
EASTERN DISTRICT OF PENNSYLVANIA
In re: Quad Systems Corporation Case No. 00-35667
------------------------ Reporting Period: 4/01/01-4/30/01
Debtor
STATUS OF POSTPETITION TAXES
The beginning tax liability should be the ending liability from the prior month
or, if this is the first report, the amount should be zero. Attach photocopies
of IRS Form 6123 or payment receipt to verify payment or deposit of federal
payroll taxes Attach photocopies of any tax returns filed during the reporting
period
Amount
Beginning Withheld or Amount Check No. Ending Tax
Tax Liability Accrued Paid Date Paid or EFT Liability
- -----------------------------------------------------------------------------------------------------------------------------------
Federal
Withholding - 68,670 68,670 ADP EFT -
FICA-Employee - 37,255 37,255 ADP EFT -
FICA-Employer - 37,255 37,255 ADP EFT -
Unemployment - 186 186 ADP EFT -
Income - - - -
Other: Tax Accounting Accrual
Only from prior years 352,702 - - 352,702
--------- ------- ------- ------ ------- ---------
Total Federal Taxes 352,702 143,366 143,366 - - 352,702
--------- ------- ------- ------ ------- ---------
State and Local
Withholding - 19,373 19,373 ADP EFT -
Sales 8,233 11,687 8,230 EFT, 169283 11,690
Excise - -
Unemployment - 2,533 2,533 ADP EFT -
Real Property - -
Other: Canadian P/R Taxes - 1,764 1,764 ADP EFT -
--------- ------- ------- ------ ------- ---------
Total State and Local 8,233 35,357 31,900 11,690
--------- ------- ------- ------ ------- ---------
Total Taxes 360,935 178,723 175,266 364,392
--------- ------- ------- ------ ------- ---------
SUMMARY OF UNPAID POSTPETITION DEBTS
Attach aged listing of accounts payable.
Number of Days Past Due
-------------------------------------------------------------
Current 0-30 31-60 61-90 Over 90 Total
------- ---- ----- ----- ------- -----
Accounts Payable 67,984 1,678 14,627 16,851 101,140
Wages Payable 201,864 201,864
Taxes Payable 11,690 352,702 364,392
Rent/Leases-Building - -
Rent/Leases-Equipment 114,038 114,038
Secured Debt/Adequate Protection Payments 2,445,129 2,445,129
Professional Fees - -
Amounts due to Insiders* - -
Other: -
Other: -
--------- ----- ------ ------ ------- ---------
Total Postpetition Debts 2,840,705 1,678 14,627 16,851 352,702 3,226,563
========= ===== ====== ====== ======= =========
Explain how and when the Debtor intends to pay any past due postpetition debts.
Note: above Taxes Payable in Past Due Column represents an prior year accounting
accrual only. It does not represent an actual payment due.
*"Insider" is defined in 11 U.S.C. Section 101(31).
FORM MOR-4
(9/99)
EXHIBIT 99
UNITED STATES BANKRUPTCY COURT
EASTERN DISTRICT OF PENNSYLVANIA
In re: Quad Systems Corporation Case No. 00-35667
------------------------ Reporting Period: 4/01/01-4/30/01
Debtor
ACCOUNTS RECEIVABLE RECONCILIATION AND AGING
Accounts Receivable Reconciliation Amount
- ---------------------------------- ------
Total Accounts Receivable at the beginning of the reporting period 3,650,935
+ Amounts billed during the period 1,696,451
- - Amounts collected during the period 2,401,705
Total Accounts Receivable at the end of the reporting period 2,945,681
Accounts Receivable Aging
- -------------------------
0 - 30 days old 1,130,577
31 - 60 days old 1,475,806
61 - 90 days old 226,141
91+ days old 113,157
Total Accounts Receivable 2,945,681
Amount considered uncollectible (Bad Debt) (220,000)
Accounts Receivable (Net) 2,725,681
Note: the Accounts Receivable collections include the application of customer
deposits received in prior periods
FORM MOR-5
(9/99)
EXHIBIT 99
UNITED STATES BANKRUPTCY COURT
EASTERN DISTRICT OF PENNSYLVANIA
In re: Quad Systems Corporation Case No. 00-35667
------------------------ Reporting Period: 3/01/01-3/31/01
Debtor
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 period? If yes, provide an explanation below. X
2. Have any funds been disbursed from any account other than a debtor in
possession account this reporting period? If yes, provide an explanation below. X
3. Have all postpetition tax returns been timely filed? If no, provide an
explanation below. X
4. Are workers compensation, general liability and other necessary insurance
coverages in effect? If no, provide an explanation below. X
- --------------------------------------------------------------------------------
Note to 1. An Inventory of Fixed Assets was taken and missing or previously
disposed of items were taken off the books.
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FORM MOR-5
(9/99)