EXHIBIT 99
UNITED STATES BANKRUPTCY COURT
EASTERN DISTRICT OF PENNSYLVANIA
In re: Quad Systems Corporation Case No. 00-35667
------------------------ Reporting Period: 5/01/01 to 5/31/01
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 June 19, 2001
- ------------------------------------- -------------------------------
Signature of Authorized Individual* Date
Anthony R. Drury C.F.O.
- ------------------------------------- -------------------------------
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: 5/01/01-5/31/01
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 265,042 66,678 3,461 50,437 385,618 277,400 977,761 977,761
RECEIPTS
Cash Sales
Accounts Receivable 2,549,000 2,549,000 2,425,000 14,725,089 10,257,000
Loans and Advances 1,490,000 1,490,000 1,940,000 10,135,000 11,482,000
Sale of Assets -- 6,800 --
Other (Attach List) 127 12,779 12,906 -- 167,689 --
Transfers (From DIP Accts) 500,000 13,544 513,544 -- 2,414,322 --
- -----------------------------------------------------------------------------------------------------------------------------------
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 41,134 454,124 11,742 507,000 508,000 3,496,942 3,500,000
Payroll Taxes 52,033 40,747 1,220 94,000 153,000 793,142 804,000
Sales, Use & Other Taxes 20,000 20,000 30,000 106,000 134,000
Inventory Purchases 313,000 313,000 405,000 3,203,000 4,235,000
Secured Rental/Leases 93,000 93,000 96,000 391,000 411,000
Insurance 46,000 46,000 133,000 219,000 544,000
Administrative 79,250 1,581 169 81,000 193,000 332,885 862,000
Selling 77,000 77,000 102,000 512,000 606,000
Other (Attach List) 196,000 2,607,000 2,803,000 2,745,000 16,490,846 13,309,000
Owner Draw*
Transfers (To DIP Accts) 513,544 513,544 -- 2,414,322 --
Professional Fees -- -- 50,000 50,000
U.S. Trustee Quarterly Fees -- -- 14,000 14,000
Court Costs
- -----------------------------------------------------------------------------------------------------------------------------------
TOTAL DISBURSEMENTS 1,430,961 496,452 13,131 2,607,000 4,547,544 4,365,000 28,023,137 24,469,000
- -----------------------------------------------------------------------------------------------------------------------------------
NET CASH FLOW 59,166 3,548 413 (45,221) 17,906 -- (574,237) (2,730,000)
- -----------------------------------------------------------------------------------------------------------------------------------
CASH - END OF MONTH 324,208 70,226 3,874 5,216 403,524 277,400 403,524 (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 4,547,544
Less: Transfers to Debtor in Possession Accounts (513,544)
Plus: Estate Disbursements made by outside sources (I.e. from escrow account) --
----------
Total Disbursements for Calculating U.S. Trustee Quarterly Fees 4,034,000
==========
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: 5/01/01-5/31/01
Continuation Sheet
Current Month Cummulative
Actual Projected Actual Projected
Explanation of Other Income
- ---------------------------
Adj of Prior Month Pre Pet. Voids 0 0 37,500 0
Rental of Parking Lot 0 0 4,000 0
Misc COBRA pmts/refunds 12,906 0 34,189 0
Insurance Claim 0 0 92,000 0
--------- --------- ---------- ----------
Total 12,906 0 167,689 0
========= ========= ========== ==========
Explanation of Other Disbursements
Congress Repayments 2,607,000 2,425,000 15,240,846 11,075,000
First Union Loan Repayments 155,000 155,000 310,000 465,000
Interest Expense 5,000 7,000 18,000 21,000
Commissions 33,000 150,000 467,000 1,057,000
Engineering 3,000 8,000 5,000 91,000
QEL Requirements 0 0 450,000 600,000
--------- --------- ---------- ----------
Total 2,803,000 2,745,000 16,490,846 13,309,000
========= ========= ========== ==========
EXHIBIT 99
UNITED STATES BANKRUPTCY COURT
EASTERN DISTRICT OF PENNSYLVANIA
In re: Quad Systems Corporation Case No. 00-35667
------------------------ Reporting Period: 5/01/01-5/31/01
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 $ 1,344,672 $ 14,274,178
Less: Returns and Allowances -- --
Net Revenue 1,344,672 14,274,178
---------- ----------
COST OF GOODS SOLD
Beginning Inventory 10,314,636 15,046,970
Add: Purchases 301,303 3,506,293
Add: Cost of Labor 60,256 348,414
Add: Other Costs (attach schedule) (201,715) 1,360,947
Less: Ending Inventory 9,912,846 9,912,846
Cost of Goods Sold 561,634 10,349,778
Gross Profit 783,038 3,924,400
---------- ----------
Advertising 2,421 50,071
Auto and Truck Expense -- --
Bad Debts -- 52,000
Contributions -- --
Employee Benefit Programs 40,651 130,602
Insider Compensation* -- --
Insurance 51,359 193,076
Management Fees/Bonuses --
Office Expense 7,639 86,693
Pension & Profit-Sharing Plans --
Repairs and Maintenance 9,853 51,923
Rent and Lease Expense 71,603 332,631
Salaries/Commissions/Fees 486,955 2,813,230
Supplies 4,093 (5,595)
Taxes - Payroll 35,579 304,411
Taxes - Real Estate 2,266 11,071
Taxes - Other 4,922 (10,700)
Travel and Entertainment 15,982 329,583
Utilities 22,517 134,453
Other (attach schedule) 86,128 574,378
Total Operating Expenses Before Depreciation 841,968 5,047,827
Depreciation/Depletion/Amortization 18,606 179,888
Net Profit (Loss) Before Other Income & Expenses (77,536) (1,303,315)
---------- ----------
OTHER INCOME AND EXPENSES
Other Income (attach schedule) --
Interest Expense 14,931 450,814
Other Expense (attach schedule) -- --
Net Profit (Loss) Before Reorganization Items (92,467) (1,754,129)
---------- ----------
REORGANIZATION ITEMS --
Professional Fees -- 50,000
U.S. Trustee Quarterly Fees -- 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 -- 64,836
Income Taxes (175,754)
Net Profit (Loss) (92,467) (1,643,211)
========== ==========
*"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: 5/01/01-5/31/01
Debtor
STATEMENT OF OPERATIONS - continuation sheet
Cumulative
BREAKDOWN OF OTHER CATEGORY Month Filing to Date
- -------------------------------------------------------------------
Overhead Absorption 218,110 1,255,078
Service Labor Costs 86,480 366,753
Warranty Costs 30,487 472,414
Non-Inventory Reserve Expenses (536,792) (733,298)
-------- ---------
Total (201,715) 1,360,947
======== =========
Other Operational Expenses
Freight 8,366 66,859
Bank Charges & LOC Fees 5,158 126,596
Professional Fees 72,604 125,084
Patent Royalties -- 255,839
-------- ---------
Total 86,128 574,378
======== =========
Other Income
Other 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: 5/01/01-5/31/01
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 332,877 161,799
Restricted Cash and Cash Equivalents (see continuation sheet) 89,505 815,962
Accounts Receivable (Net) 1,486,316 3,130,385
Notes Receivable -- --
Inventories 9,912,846 15,046,970
Prepaid Expenses 196,597 433,952
Professional Retainers -- --
Other Current Assets (attach schedule) 519,885 (325,421)
---------- ----------
TOTAL CURRENT ASSETS 12,538,026 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 3,170,174 4,324,223
---------- ----------
TOTAL PROPERTY & EQUIPMENT 1,228,009 1,647,555
========== ==========
OTHER ASSETS
Loans to Insiders*
Other Assets (attach schedule) 694,436 1,054,423
TOTAL OTHER ASSETS 694,436 1,054,423
---------- ----------
TOTAL ASSETS 14,460,471 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 105,330 8,246,757
Taxes Payable (refer to FORM MOR-4) 361,035 370,167
Wages Payable 303,013 671,333
Notes Payable -- --
Rent/Leases - Building/Equipment 112,601 220,133
Secured Debt / Adequate Protection Payments 1,311,886 6,317,257
Professional Fees -- --
Amounts Due to Insiders* -- --
Other Postpetition Liabilities (attach schedule) 2,312,054 3,861,109
---------- ----------
TOTAL POSTPETITION LIABILITIES 4,505,919 19,686,756
========== ==========
LIABILITIES SUBJECT TO COMPROMISE (Pre-Petition)
Secured Debt
Priority Debt 182,489 --
Unsecured Debt 9,136,405 --
---------- ----------
TOTAL PRE-PETITION LIABILITIES 9,318,894 --
---------- ----------
TOTAL LIABILITIES 13,824,813 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 (1,643,211) --
Adjustments to Owner Equity (attach schedule) -- --
Postpetition Contributions (Distributions)
(Draws) (attach schedule) -- --
---------- ----------
NET OWNER EQUITY 635,658 2,278,869
---------- ----------
TOTAL LIABILITIES AND OWNERS EQUITY 14,460,471 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: 5/01/01-5/31/01
Debtor
BALANCE SHEET - continuation sheet
BOOK VALUE
AT END OF BOOK VALUE
CURRENT ON
REPORTING PETITION
ASSETS MONTH DATE
- ------------------------------------------------------------------------------------------
Accts Rec - Misc 198,110 537
Temp. Empl Advances 2,850 43,891
Permanent Advances 1,100 921
Deposits 144,899 40,437
Interco - Current 172,926 (411,207)
Other Assets
Acquisition Costs - QEL 6,755 8,598
Patent Costs 1,602 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 1,055,037 1,151,531
Customer Deposits 211,743 416,644
Accrued Expenses 677,975 1,872,647
Commission Payable 367,299 420,287
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: 5/01/01-5/31/01
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 - 74,145 74,145 ADP EFT -
FICA-Employee - 38,717 38,717 ADP EFT -
FICA-Employer - 38,717 38,717 ADP EFT -
Unemployment - 137 137 ADP EFT -
Income - - - -
Other: Tax Accounting Accrual
Only from prior years 352,702 - - - - 352,702
--------- ------- ------- ------ ------- ---------
Total Federal Taxes 352,702 151,716 151,716 - - 352,702
--------- ------- ------- ------ ------- ---------
State and Local
Withholding - 20,559 20,559 ADP EFT -
Sales 11,690 7,201 10,555 CA EFT 8,336
Excise - -
Unemployment - 1,669 1,669 ADP EFT -
Real Property - -
Other: Canadian P/R Taxes - 3,393 3,393 ADP EFT -
--------- ------- ------- ------ ------- ---------
Total State and Local 11,690 32,822 36,176 ADP EFT 8,336
--------- ------- ------- ------ ------- ---------
Total Taxes 364,392 184,538 187,892 361,038
--------- ------- ------- ------ ------- ---------
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 62,457 16,999 16,782 9,092 105,330
Wages Payable 303,013 303,013
Taxes Payable 8,336 352,702 8,336
Rent/Leases-Building - -
Rent/Leases-Equipment 112,601 112,601
Secured Debt/Adequate Protection Payments 1,331,886 1,331,886
Professional Fees - -
Amounts due to Insiders* - -
Other: -
Other: -
--------- ------ ------ ------ ------- ---------
Total Postpetition Debts 1,798,293 16,999 16,782 9,092 352,702 2,193,868
========= ====== ====== ====== ======= =========
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.
Note: Sales Taxes Paid are monthly estimates only no return was filed
*"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: 5/01/01-5/31/01
Debtor
ACCOUNTS RECEIVABLE RECONCILIATION AND AGING
Accounts Receivable Reconciliation Amount
- ---------------------------------- ------
Total Accounts Receivable at the beginning of the reporting period 2,945,681
+ Amounts billed during the period 1,145,657
- - Amounts collected during the period 2,605,022
Total Accounts Receivable at the end of the reporting period 1,486,316
Accounts Receivable Aging
- -------------------------
0 - 30 days old 899,874
31 - 60 days old 501,491
61 - 90 days old 189,890
91+ days old 115,061
Total Accounts Receivable 1,706,316
Amount considered uncollectible (Bad Debt) (220,000)
Accounts Receivable (Net) 1,486,316
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: 5/01/01-5/31/01
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
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
FORM MOR-5
(9/99)