Monthly Operating Report
- -----------------------------------
CASE NAME: Daisytek, Incorporated ACCRUAL BASIS
B.A. Pargh Company
Virtual Demand, Inc.
- -----------------------------------
- -----------------------------------
CASE NUMBER: 03-34762-HDH-11 02/13/95, RWD, 2/96
- -----------------------------------
- -----------------------------------
JUDGE: H.D. Hale
- -----------------------------------
UNITED STATES BANKRUPTCY COURT
NORTHERN DISTRICT OF TEXAS
-------- -----
6 DIVISION
-
MONTHLY OPERATING REPORT
MONTH ENDING: May 31, 2003
------
IN ACCORDANCE WITH TITLE 28, SECTION 1746, OF THE UNITED STATES CODE, I DECLARE
UNDER PENALTY OF PERJURY THAT I HAVE EXAMINED THE FOLLOWING MONTHLY OPERATING
REPORT (ACCRUAL BASIS-1 THROUGH ACCRUAL BASIS-7) AND THE ACCOMPANYING
ATTACHMENTS AND, TO THE BEST OF MY KNOWLEDGE, THESE DOCUMENTS ARE TRUE, CORRECT
AND COMPLETE. DECLARATION OF THE PREPARER (OTHER THAN RESPONSIBLE PARTY): IS
BASED ON ALL INFORMATION OF WHICH PREPARER HAS ANY KNOWLEDGE.
RESPONSIBLE PARTY:
/s/ Eric T. Logan Interim Chief Financial Officer
- --------------------------------------- ------------------------------------
ORIGINAL SIGNATURE OF RESPONSIBLE PARTY TITLE
Eric T. Logan June 20, 2003
- --------------------------------------- ------------------------------------
PRINTED NAME OF RESPONSIBLE PARTY DATE
PREPARER:
/s/ Mark Corjay Vice President, Controller
- --------------------------------------- ------------------------------------
ORIGINAL SIGNATURE OF PREPARER TITLE
Mark Corjay June 20, 2003
- --------------------------------------- ------------------------------------
PRINTED NAME OF PREPARER DATE
Monthly Operating Report
- ---------------------------------------
CASE NAME: Daisytek, Incorporated ACCRUAL BASIS-1
B.A. Pargh Company
Virtual Demand, Inc.
- ---------------------------------------
- ---------------------------------------
CASE NUMBER: 03-34762-HDH-11 02/13/95, RWD, 2/96
- ---------------------------------------
COMPARATIVE BALANCE SHEET
- ------------------------------------------------------------------------------------------------------------------------------------
SCHEDULE MONTH MONTH MONTH
------------------------------------------
ASSETS May 2003
- ------------------------------------------------------------------------------------------------------------------------------------
1. UNRESTRICTED CASH $1,296,376 $4,054,267
- ------------------------------------------------------------------------------------------------------------------------------------
2. RESTRICTED CASH
- ------------------------------------------------------------------------------------------------------------------------------------
3. TOTAL CASH $1,296,376 $4,054,267 $0 $0
====================================================================================================================================
4. ACCOUNTS RECEIVABLE (NET) $17,323,114 $9,878,718
- ------------------------------------------------------------------------------------------------------------------------------------
5. INVENTORY $29,488,615 $27,836,274
- ------------------------------------------------------------------------------------------------------------------------------------
6. NOTES RECEIVABLE
- ------------------------------------------------------------------------------------------------------------------------------------
7. PREPAID EXPENSES $4,385,371 $5,568,105
- ------------------------------------------------------------------------------------------------------------------------------------
8. OTHER (ATTACH LIST)
- ------------------------------------------------------------------------------------------------------------------------------------
Intercompany accounts receivable,net $8,302,227 $8,851,383
- ------------------------------------------------------------------------------------------------------------------------------------
Credit card and other receivables $221,169 $142,089
- ------------------------------------------------------------------------------------------------------------------------------------
Deferred tax asset $28,497,969 $28,239,610
- ------------------------------------------------------------------------------------------------------------------------------------
Taxes receivable $8,317,016 $9,948,656
- ------------------------------------------------------------------------------------------------------------------------------------
Prepaid merchandise $6,184,157 $977,878
- ------------------------------------------------------------------------------------------------------------------------------------
Employee payroll/travel advances $23,768 $13,631
- ------------------------------------------------------------------------------------------------------------------------------------
TOTAL OTHER $51,546,306 $48,173,247
- ------------------------------------------------------------------------------------------------------------------------------------
9. TOTAL CURRENT ASSETS $104,039,782 $95,510,611 $0 $0
====================================================================================================================================
10. PROPERTY, PLANT & EQUIPMENT $46,587,581 $46,627,279
- ------------------------------------------------------------------------------------------------------------------------------------
11. LESS: ACCUMULATED
DEPRECIATION / DEPLETION $18,626,655 $19,088,891
- ------------------------------------------------------------------------------------------------------------------------------------
12. NET PROPERTY, PLANT &
EQUIPMENT $27,960,926 $27,538,388 $0 $0
====================================================================================================================================
13. DUE FROM INSIDERS $67,289 $67,289
- ------------------------------------------------------------------------------------------------------------------------------------
14. OTHER ASSETS - NET OF OTHER AMORTIZATIONS
- ------------------------------------------------------------------------------------------------------------------------------------
Reserve - due from insiders ($58,689) ($58,689)
- ------------------------------------------------------------------------------------------------------------------------------------
Deferred acquisition costs $3,196,694 $3,196,694
- ------------------------------------------------------------------------------------------------------------------------------------
Software development assets $366,231 $0
- ------------------------------------------------------------------------------------------------------------------------------------
TOTAL OTHER ASSETS - NET OF AMORTIZATION $3,504,236 $3,138,005
- ------------------------------------------------------------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------------------------------------------------------
15. OTHER (ATTACH LIST) $0 $0
- ------------------------------------------------------------------------------------------------------------------------------------
16. TOTAL ASSETS $135,572,233 $126,254,293 $0 $0
====================================================================================================================================
POSTPETITION LIABILITIES
- ------------------------------------------------------------------------------------------------------------------------------------
17. ACCOUNTS PAYABLE $1,022,785
- ------------------------------------------------------------------------------------------------------------------------------------
18. TAXES PAYABLE $47,137
- ------------------------------------------------------------------------------------------------------------------------------------
19. NOTES PAYABLE
- ------------------------------------------------------------------------------------------------------------------------------------
20. PROFESSIONAL FEES $802,801
- ------------------------------------------------------------------------------------------------------------------------------------
21. SECURED DEBT
- ------------------------------------------------------------------------------------------------------------------------------------
22. OTHER (ATTACH LIST)
- ------------------------------------------------------------------------------------------------------------------------------------
Interest payable $299,438
- ------------------------------------------------------------------------------------------------------------------------------------
Other accounts payable and prepaid merchandise $900,458
- ------------------------------------------------------------------------------------------------------------------------------------
Acrued expenses $1,552,867
- ------------------------------------------------------------------------------------------------------------------------------------
TOTAL OTHER $2,752,763
- ------------------------------------------------------------------------------------------------------------------------------------
23. TOTAL POSTPETITION
LIABILITIES $4,625,486 $0 $0
====================================================================================================================================
PREPETITION LIABILITIES
- ------------------------------------------------------------------------------------------------------------------------------------
24. SECURED DEBT $58,116,360 $55,715,579
- ------------------------------------------------------------------------------------------------------------------------------------
25. PRIORITY DEBT $631,989 $2,014
- ------------------------------------------------------------------------------------------------------------------------------------
26. UNSECURED DEBT $57,946,614 $57,863,808
- ------------------------------------------------------------------------------------------------------------------------------------
27. OTHER (ATTACH LIST)
- ------------------------------------------------------------------------------------------------------------------------------------
Other accounts payable and prepaid merchandise $3,320,348 ($3,227,329)
- ------------------------------------------------------------------------------------------------------------------------------------
Interest payable $1,733,255 $1,733,255
- ------------------------------------------------------------------------------------------------------------------------------------
Accrued expenses $6,553,875 $4,784,273
- ------------------------------------------------------------------------------------------------------------------------------------
Capital lease liability $9,163,598 $9,163,598
- ------------------------------------------------------------------------------------------------------------------------------------
TOTAL OTHER $20,771,076 $12,453,797
- ------------------------------------------------------------------------------------------------------------------------------------
28. TOTAL PREPETITION LIABILITIES $137,466,039 $126,035,198 $0 $0
====================================================================================================================================
29. TOTAL LIABILITIES $137,466,039 $130,660,684 $0 $0
====================================================================================================================================
EQUITY
- ------------------------------------------------------------------------------------------------------------------------------------
30. PREPETITION OWNERS' EQUITY ($1,893,806) ($1,893,806)
- ------------------------------------------------------------------------------------------------------------------------------------
31. POSTPETITION CUMULATIVE ($3,581,423)
PROFIT OR (LOSS)
- ------------------------------------------------------------------------------------------------------------------------------------
32. DIRECT CHARGES TO EQUITY
(ATTACH EXPLANATION) $1,068,838
- ------------------------------------------------------------------------------------------------------------------------------------
33. TOTAL EQUITY ($1,893,806) ($4,406,391) $0 $0
====================================================================================================================================
34. TOTAL LIABILITIES &
OWNERS' EQUITY $135,572,233 $126,254,293 $0 $0
====================================================================================================================================
Monthly Operating Report
- ---------------------------------------
CASE NAME: Daisytek, Incorporated ACCRUAL BASIS-2
B.A. Pargh Company
Virtual Demand, Inc.
- ---------------------------------------
- ---------------------------------------
CASE NUMBER: 03-34762-HDH-11 02/13/95, RWD, 2/96
- ---------------------------------------
INCOME STATEMENT
- ----------------------------------------------------------------------------------------------------------------------------
MONTH MONTH MONTH
----------------------------------------------- QUARTER
REVENUES 5/7/03-5/31/03 TOTAL
- ----------------------------------------------------------------------------------------------------------------------------
1. GROSS REVENUES $391,202
- ----------------------------------------------------------------------------------------------------------------------------
2. LESS: RETURNS & DISCOUNTS $143,807
- ----------------------------------------------------------------------------------------------------------------------------
3. NET REVENUE $247,395 $0 $0 $0
- ----------------------------------------------------------------------------------------------------------------------------
COST OF GOODS SOLD
- ----------------------------------------------------------------------------------------------------------------------------
4. MATERIAL
- ----------------------------------------------------------------------------------------------------------------------------
5. DIRECT LABOR
- ----------------------------------------------------------------------------------------------------------------------------
6. DIRECT OVERHEAD
- ----------------------------------------------------------------------------------------------------------------------------
7. TOTAL COST OF GOODS SOLD $311,739 $0 $0 $0
============================================================================================================================
8. GROSS PROFIT ($64,344) $0 $0 $0
- ----------------------------------------------------------------------------------------------------------------------------
OPERATING EXPENSES
- ----------------------------------------------------------------------------------------------------------------------------
9. OFFICER / INSIDER COMPENSATION $102,369
- ----------------------------------------------------------------------------------------------------------------------------
10. SELLING & MARKETING $2,507
- ----------------------------------------------------------------------------------------------------------------------------
11. GENERAL & ADMINISTRATIVE $830,139
- ----------------------------------------------------------------------------------------------------------------------------
12. RENT & LEASE $721,600
- ----------------------------------------------------------------------------------------------------------------------------
13. OTHER (ATTACH LIST)
- ----------------------------------------------------------------------------------------------------------------------------
14. TOTAL OPERATING EXPENSES $1,656,615 $0 $0 $0
============================================================================================================================
15. INCOME BEFORE NON-OPERATING
INCOME & EXPENSE ($1,720,959) $0 $0 $0
- ----------------------------------------------------------------------------------------------------------------------------
OTHER INCOME & EXPENSES
- ----------------------------------------------------------------------------------------------------------------------------
16. NON-OPERATING INCOME (ATT. LIST)
- ----------------------------------------------------------------------------------------------------------------------------
Intercompany management fees from subsidiaries $101,216
- ----------------------------------------------------------------------------------------------------------------------------
TOTAL NON-OPERATING INCOME $101,216
- ----------------------------------------------------------------------------------------------------------------------------
17. NON-OPERATING EXPENSE (ATT. LIST)
- ----------------------------------------------------------------------------------------------------------------------------
Banking fees and other $58,878
- ----------------------------------------------------------------------------------------------------------------------------
Termination of interest rate swap $1,644,886
- ----------------------------------------------------------------------------------------------------------------------------
Write-off of software development costs $366,231
- ----------------------------------------------------------------------------------------------------------------------------
Intercompany management fee to Daisytek International $245,022
- ----------------------------------------------------------------------------------------------------------------------------
TOTAL NON-OPERATING EXPENSE $2,315,017
- ----------------------------------------------------------------------------------------------------------------------------
18. INTEREST EXPENSE $299,438
- ----------------------------------------------------------------------------------------------------------------------------
19. DEPRECIATION / DEPLETION $204,853
- ----------------------------------------------------------------------------------------------------------------------------
20. AMORTIZATION $259,028
- ----------------------------------------------------------------------------------------------------------------------------
21. OTHER (ATTACH LIST)
- ----------------------------------------------------------------------------------------------------------------------------
22. NET OTHER INCOME & EXPENSES $2,977,120 $0 $0 $0
- ----------------------------------------------------------------------------------------------------------------------------
REORGANIZATION EXPENSES
- ----------------------------------------------------------------------------------------------------------------------------
23. PROFESSIONAL FEES (FROM SCHEDULE) $802,801
- ----------------------------------------------------------------------------------------------------------------------------
24. U.S. TRUSTEE FEES $9,000
- ----------------------------------------------------------------------------------------------------------------------------
25. OTHER (ATTACH LIST)
- ----------------------------------------------------------------------------------------------------------------------------
26. TOTAL REORGANIZATION EXPENSES $811,801 $0 $0 $0
============================================================================================================================
27 INCOME TAX ($1,928,457)
- ----------------------------------------------------------------------------------------------------------------------------
28. NET PROFIT (LOSS) ($3,581,423) $0 $0 $0
============================================================================================================================
Monthly Operating Report
- ---------------------------------------
CASE NAME: Daisytek, Incorporated ACCRUAL BASIS-3
B.A. Pargh Company
Virtual Demand, Inc.
- ---------------------------------------
- ---------------------------------------
CASE NUMBER: 03-34762-HDH-11 02/13/95, RWD, 2/96
- ---------------------------------------
MONTH MONTH MONTH
CASH RECEIPTS AND --------------------------------------------- QUARTER
DISBURSEMENTS 5/7/03-5/31/03 TOTAL
- -------------------------------------------------------------------------------------------------------------------
1. CASH - BEGINNING OF MONTH $1,296,376 $4,054,267 $4,054,267
- -------------------------------------------------------------------------------------------------------------------
RECEIPTS FROM OPERATIONS
- -------------------------------------------------------------------------------------------------------------------
2. CASH SALES
- -------------------------------------------------------------------------------------------------------------------
COLLECTION OF ACCOUNTS RECEIVABLE
- -------------------------------------------------------------------------------------------------------------------
3. PREPETITION
- -------------------------------------------------------------------------------------------------------------------
4. POSTPETITION $7,419,904
- -------------------------------------------------------------------------------------------------------------------
5. TOTAL OPERATING RECEIPTS $7,419,904 $0 $0 $0
- -------------------------------------------------------------------------------------------------------------------
NON - OPERATING RECEIPTS
- -------------------------------------------------------------------------------------------------------------------
6. LOANS & ADVANCES (ATTACH LIST)
- -------------------------------------------------------------------------------------------------------------------
7. SALE OF ASSETS
- -------------------------------------------------------------------------------------------------------------------
8. Intercompany transfers ($538,473)
- -------------------------------------------------------------------------------------------------------------------
9. TOTAL NON-OPERATING RECEIPTS ($538,473) $0 $0 $0
===================================================================================================================
10. TOTAL RECEIPTS $6,881,431 $0 $0 $0
===================================================================================================================
11. TOTAL CASH AVAILABLE $8,177,807 4,054,267 $4,054,267 $0
- -------------------------------------------------------------------------------------------------------------------
OPERATING DISBURSEMENTS
- -------------------------------------------------------------------------------------------------------------------
12. NET PAYROLL $528,761
- -------------------------------------------------------------------------------------------------------------------
13. PAYROLL TAXES PAID $144,275
- -------------------------------------------------------------------------------------------------------------------
14. SALES, USE & OTHER TAXES PAID $20,107
- -------------------------------------------------------------------------------------------------------------------
15. SECURED / RENTAL / LEASES $350,329
- -------------------------------------------------------------------------------------------------------------------
16. UTILITIES $202,838
- -------------------------------------------------------------------------------------------------------------------
17. INSURANCE $37,905
- -------------------------------------------------------------------------------------------------------------------
18. INVENTORY PURCHASES
- -------------------------------------------------------------------------------------------------------------------
19. VEHICLE EXPENSES
- -------------------------------------------------------------------------------------------------------------------
20. TRAVEL $6,637
- -------------------------------------------------------------------------------------------------------------------
21. ENTERTAINMENT
- -------------------------------------------------------------------------------------------------------------------
22. REPAIRS & MAINTENANCE
- -------------------------------------------------------------------------------------------------------------------
23. SUPPLIES $189
- -------------------------------------------------------------------------------------------------------------------
24. ADVERTISING
- -------------------------------------------------------------------------------------------------------------------
25. OTHER (ATTACH LIST)
- -------------------------------------------------------------------------------------------------------------------
Paydown line of credit $2,832,500
- -------------------------------------------------------------------------------------------------------------------
26. TOTAL OPERATING DISBURSEMENTS $4,123,540 $0 $0 $0
- -------------------------------------------------------------------------------------------------------------------
REORGANIZATION EXPENSES
- -------------------------------------------------------------------------------------------------------------------
27. PROFESSIONAL FEES
- -------------------------------------------------------------------------------------------------------------------
28. U.S. TRUSTEE FEES
- -------------------------------------------------------------------------------------------------------------------
29. OTHER (ATTACH LIST)
- -------------------------------------------------------------------------------------------------------------------
30. TOTAL REORGANIZATION EXPENSES $0 $0 $0 $0
===================================================================================================================
31. TOTAL DISBURSEMENTS $4,123,540 $0 $0 $0
===================================================================================================================
32. NET CASH FLOW $2,757,891 $0 $0 $0
===================================================================================================================
33. CASH - END OF MONTH $4,054,267 $4,054,267 $4,054,267 $0
===================================================================================================================
Monthly Operating Report
- ---------------------------------------
CASE NAME: Daisytek, Incorporated ACCRUAL BASIS-4
B.A. Pargh Company
Virtual Demand, Inc.
- ---------------------------------------
- ---------------------------------------
CASE NUMBER: 03-34762-HDH-11 02/13/95, RWD, 2/96
- ---------------------------------------
MONTH MONTH MONTH
SCHEDULE ---------------------------
ACCOUNTS RECEIVABLE AGING AMOUNT May 2003
- --------------------------------------------------------------------------------
1. 0-30 $16,882,250 $6,628,374
- --------------------------------------------------------------------------------
2. 31-60 $1,733,157 $3,542,225
- --------------------------------------------------------------------------------
3. 61-90 $474,006 $1,208,271
- --------------------------------------------------------------------------------
4. 91+ $2,734,808 $3,001,269
================================================================================
5. TOTAL ACCOUNTS RECEIVABLE $21,824,221 $14,380,139 $0
- --------------------------------------------------------------------------------
6. AMOUNT CONSIDERED UNCOLLECTIBLE $4,501,107 $4,501,421
================================================================================
7. ACCOUNTS RECEIVABLE (NET) $17,323,114 $9,878,718 $0 $0
================================================================================
AGING OF POSTPETITION TAXES AND PAYABLES MONTH: _________________
- ----------------------------------------------------------------------------------------------------------
0-30 31-60 61-90 91+
TAXES PAYABLE DAYS DAYS DAYS DAYS TOTAL
- ----------------------------------------------------------------------------------------------------------
1. FEDERAL $39,816 $0 $0 $0 $39,816
- ----------------------------------------------------------------------------------------------------------
2. STATE $949 $0 $0 $0 $949
- ----------------------------------------------------------------------------------------------------------
3. LOCAL $6,372 $0 $0 $0 $6,372
- ----------------------------------------------------------------------------------------------------------
4. OTHER (ATTACH LIST) $0 $0 $0 $0 $0
==========================================================================================================
5. TOTAL TAXES PAYABLE $47,137 $0 $0 $0 $47,137
==========================================================================================================
==========================================================================================================
6. ACCOUNTS PAYABLE $1,022,785 $1,022,785
==========================================================================================================
STATUS OF POSTPETITION TAXES MONTH: May 2003
-------------------
- ----------------------------------------------------------------------------------------------------------
BEGINNING AMOUNT ENDING
TAX WITHHELD AND/ AMOUNT TAX
FEDERAL LIABILITY* OR ACCRUED PAID LIABILITY
- ----------------------------------------------------------------------------------------------------------
1. WITHHOLDING** $0 $96,211 $74,622 $21,589
- ----------------------------------------------------------------------------------------------------------
2. FICA-EMPLOYEE** $0 $43,013 $33,903 $9,110
- ----------------------------------------------------------------------------------------------------------
3. FICA-EMPLOYER** $0 $43,013 $33,903 $9,110
- ----------------------------------------------------------------------------------------------------------
4. UNEMPLOYMENT $0 $65 $58 $7
- ----------------------------------------------------------------------------------------------------------
5. INCOME $0 $0 $0 $0
- ----------------------------------------------------------------------------------------------------------
6. OTHER (ATTACH LIST) $0 $0 $0 $0
==========================================================================================================
7. TOTAL FEDERAL TAXES $0 $182,302 $142,486 $39,816
==========================================================================================================
STATE AND LOCAL
- ----------------------------------------------------------------------------------------------------------
8. WITHHOLDING $0 $1,852 $1,032 $820
- ----------------------------------------------------------------------------------------------------------
9. SALES $0 $0 $0 $0
- ----------------------------------------------------------------------------------------------------------
10. EXCISE $0 $0 $0 $0
- ----------------------------------------------------------------------------------------------------------
11. UNEMPLOYMENT $0 $886 $757 $129
- ----------------------------------------------------------------------------------------------------------
12. REAL PROPERTY $0 $0 $0 $0
- ----------------------------------------------------------------------------------------------------------
13. PERSONAL PROPERTY $0 $6,372 $0 $6,372
- ----------------------------------------------------------------------------------------------------------
14. OTHER (ATTACH LIST) $0 $0 $0 $0
==========================================================================================================
15. TOTAL STATE & LOCAL $0 $9,110 $1,789 $7,321
==========================================================================================================
16. TOTAL TAXES $0 $191,412 $144,275 $47,137
==========================================================================================================
* The beginning tax liability should represent the liability from the prior
month or, if this is the first operating report, the amount should be zero.
** Attach photocopies of IRS Form 6123 or your FTD coupon and payment receipt
to verify payment or deposit.
Monthly Operating Report
- ----------------------------------------------
CASE NAME: Daisytek, Incorporated ACCRUAL BASIS-5
B.A. Pargh Company
Virtual Demand, Inc.
- ----------------------------------------------
- ----------------------------------------------
CASE NUMBER: 03-34762-HDH-11 02/13/95, RWD, 2/96
- ----------------------------------------------
The debtor in possession must complete the reconciliation below for each bank
account, including all general, payroll and tax accounts, as well as all savings
and investment accounts, money market accounts, certificates of deposit,
government obligations, etc. Accounts with restricted funds should be identified
by placing an asterisk next to the account number. Attach additional sheets if
necessary.
MONTH: May 2003
----------------
BANK RECONCILIATIONS
Account #1 Account #2 Account #3 Account #4 Account #5 Account #6
- ----------------------------------------------------------------------------------------------------------------------------------
A. BANK: See Below - A Guaranty Chase Bank of America Bank One Bank of America
- ---------------------------------------------------------------------------------------------------------------------
B. ACCOUNT NUMBER: See Below - A 380-1466909 88006320428 3752175743 629438797 3752175772 TOTAL
- ---------------------------------------------------------------------------------------------------------------------
C. PURPOSE (TYPE): See Below - A Payroll/Benefits Flex Plan Petty Cash-Bksfld Disbursement Depository
==================================================================================================================================
1. BALANCE PER
BANK STATEMENT $4,633,701 $419,794 $8,616 $4,814 $5,066,925
- ----------------------------------------------------------------------------------------------------------------------------------
2. ADD: TOTAL
DEPOSITS NOT
CREDITED $82,583 $1,191 $83,774
- ----------------------------------------------------------------------------------------------------------------------------------
3. SUBTRACT:
OUTSTANDING
CHECKS $890,474 $243,566 $4,784 $1,138,823
- ----------------------------------------------------------------------------------------------------------------------------------
4. OTHER
RECONCILING
ITEMS ($312,592) $154,272 $137,059 $62,840 $41,579
- ----------------------------------------------------------------------------------------------------------------------------------
5. MONTH END
BALANCE PER
BOOKS $3,513,218 $330,500 $3,832 $4,814 $137,059 $64,031 $4,053,455
- ----------------------------------------------------------------------------------------------------------------------------------
6. NUMBER OF
LAST CHECK
WRITTEN 208045 See Below-B 1562
- ----------------------------------------------------------------------------------------------------------------------------------
INVESTMENT ACCOUNTS
- ----------------------------------------------------------------------------------------------------------------------------------
BANK, ACCOUNT DATE OF TYPE OF PURCHASE CURRENT
NAME & NUMBER PURCHASE INSTRUMENT PRICE VALUE
- ----------------------------------------------------------------------------------------------------------------------------------
7.
- ----------------------------------------------------------------------------------------------------------------------------------
8.
- ----------------------------------------------------------------------------------------------------------------------------------
9.
- ----------------------------------------------------------------------------------------------------------------------------------
10.
- ----------------------------------------------------------------------------------------------------------------------------------
11. TOTAL INVESTMENTS $0 $0
- ----------------------------------------------------------------------------------------------------------------------------------
CASH
- ----------------------------------------------------------------------------------------------------------------------------------
12. CURRENCY ON HAND $812
- ----------------------------------------------------------------------------------------------------------------------------------
- ----------------------------------------------------------------------------------------------------------------------------------
13. TOTAL CASH - END OF MONTH $4,054,267
- ----------------------------------------------------------------------------------------------------------------------------------
Note A:
Daisytek performs a consolidated bank reconciliation. The following is the
listing of bank accounts included in this reconciliation:
Bank Account # Purpose Balance per Bank
Bank of America 3752175714 Master Funding 837,280
Bank of America 3752190663 Prof Fee Segr Acct 834,000
Bank of America 3752175808 Master Collections 1,224,112
Bank One 10-91081 Accts Payable 1,298,719
Bank One 633680996 Disbursement 411,654
Bank One 11-28503 Master Collections 7,311
Chase 88-05174651 Operating 19,771
Frost Nat'l Bank 966003966 Emp Benefits 410
Bank One 1571581485 Master Depository 442
---
4,633,701
Note B: Account #2 - Item 6 - Last Check Written:
Payroll Manual Checks - Last Check# is 3946
Payroll Computer Checks - last Check# is 102960
Monthly Operating Report
- --------------------------------------------------
CASE NAME: Daisytek, Incorporated ACCRUAL BASIS-6
B.A. Pargh Company
Virtual Demand, Inc.
- --------------------------------------------------
- --------------------------------------------------
CASE NUMBER: 03-34762-HDH-11 02/13/95, RWD, 2/96
- --------------------------------------------------
MONTH: May 2003
-----------
- --------------------------------------------------
PAYMENTS TO INSIDERS AND PROFESSIONALS
- --------------------------------------------------
OF THE TOTAL DISBURSEMENTS SHOWN FOR THE MONTH, LIST THE AMOUNT PAID TO INSIDERS
(AS DEFINED IN SECTION 101 (31) (A)-(F) OF THE U.S. BANKRUPTCY CODE) AND TO
PROFESSIONALS. ALSO, FOR PAYMENTS TO INSIDERS, IDENTIFY THE TYPE OF COMPENSATION
PAID (e.g. SALARY, BONUS, COMMISSIONS, INSURANCE, HOUSING ALLOWANCE, TRAVEL, CAR
ALLOWANCE, ETC.). ATTACH ADDITIONAL SHEETS IF NECESSARY.
- ----------------------------------------------------------------------------------
INSIDERS
- ----------------------------------------------------------------------------------
TYPE OF AMOUNT TOTAL PAID
NAME PAYMENT PAID TO DATE
- ----------------------------------------------------------------------------------
1. Dale Booth Salary $37,692 $37,692
- ----------------------------------------------------------------------------------
2. Ralph Doherty Salary $14,584 $14,584
- ----------------------------------------------------------------------------------
3. Jack Kearney Salary $20,923 $20,923
- ----------------------------------------------------------------------------------
4. Eric Logan Salary $14,585 $14,585
- ----------------------------------------------------------------------------------
5. Peter Wharf Salary $14,585 $14,585
- ----------------------------------------------------------------------------------
6. TOTAL PAYMENTS
TO INSIDERS $102,369 $102,369
- ----------------------------------------------------------------------------------
- -------------------------------------------------------------------------------------------------------------------
PROFESSIONALS
- -------------------------------------------------------------------------------------------------------------------
DATE OF COURT TOTAL
ORDER AUTHORIZING AMOUNT AMOUNT TOTAL PAID INCURRED
NAME PAYMENT APPROVED PAID TO DATE & UNPAID*
- -------------------------------------------------------------------------------------------------------------------
1. Vinson & Elkins n/a $0 $0 $0 $377,801
- -------------------------------------------------------------------------------------------------------------------
2. FTI n/a $0 $0 $0 $175,000
- -------------------------------------------------------------------------------------------------------------------
3. Rochelle Elrod Hutcheson n/a n/a $0 $0 $125,000
- -------------------------------------------------------------------------------------------------------------------
4. Deloitte & Touche n/a n/a $0 $0 $125,000
- -------------------------------------------------------------------------------------------------------------------
5.
- -------------------------------------------------------------------------------------------------------------------
6. TOTAL PAYMENTS
TO PROFESSIONALS $0 $0 $0 $802,801
- -------------------------------------------------------------------------------------------------------------------
* INCLUDE ALL FEES INCURRED, BOTH APPROVED AND UNAPPROVED
================================================================================
POSTPETITION STATUS OF SECURED NOTES, LEASES PAYABLE AND ADEQUATE
PROTECTION PAYMENTS
================================================================================
SCHEDULED AMOUNTS
MONTHLY PAID TOTAL
PAYMENTS DURING UNPAID
NAME OF CREDITOR DUE MONTH POSTPETITION
- -------------------------------------------------------------------------------------------------
1. L&B Depp Enterprises II 84,463 0 84,463
2. Tejon Dermody Industrial 92,756 92,756 0
3. New York Life Southpark 120,588 120,588 0
4. Selkirk Ventures 128,938 128,938 0
5. Proterra Properties 8,047 8,047 0
6. MRE, Inc 185 0 185
7. Bank One Texas Leasing Corp 897 0 897
8. Raymond Leasing (Sch 82369) 3,281 0 3,281
9. Raymond Leasing (Sch 823610) 997 0 997
10. Raymond Leasing (Sch 823611) 235 0 235
11. Raymond Leasing (Sch 823613) 1,938 0 1,938
12. Raymond Leasing (Sch 82614) 3,759 0 3,759
13. American Business Machines Co 99 0 99
14. Canon Financial Services 364 0 364
15. GATX Schedule #10 7,568 0 7,568
16. GATX Schedule #1 6,214 0 6,214
17. IOS Capital Inc 668 0 668
18. IOS Capital Inc 8,579 0 8,579
19. IOS Capital Inc 525 0 525
20. Deutsche Financial Services Corporation 6,516 0 6,516
21. Wells Fargo Equipment Finance 14,165 0 14,165
22 GE Public Finance, Inc Schedule 1 22,656 0 22,656
23 GE Public Finance, Inc Schedule 2 15,304 0 15,304
24 GE Public Finance, Inc Schedule 3 9,551 0 9,551
25. CitiCorp Del--Lease Inc 364 0 364
26. General Electric Capital Corporation Sch 2 6,767 0 6,767
27. General Electric Capital Corporation Sch 3 109,952 0 109,952
28. General Electric Capital Corporation Sch 4 13,774 0 13,774
29. General Electric Capital Corporation Sch 5 24,685 0 24,685
30. General Electric Capital Corporation Sch 6 47,091 0 47,091
31. General Electric Capital Corporation Sch 7 9,710 0 9,710
32. General Electric Capital Corporation Sch 8 16,505 0 16,505
33. General Electric Capital Corporation Sch 9 7,868 0 7,868
34. General Electric Capital Corporation Sch 10 10,270 0 10,270
35. General Electric Capital Corporation Sch 11 4,995 0 4,995
36. Fleet Capital Corporation Schedule 34049-001 18,093 0 18,093
37. Fleet Capital Corporation Schedule 34049-00902 1,037 0 1,037
38. Fleet Capital Corporation Schedule 32585-002 13,544 0 13,544
39. Fleet Capital Corporation Schedule 32585-003 19,936 0 19,936
40. Fleet Capital Corporation Schedule 32585-004 1,431 0 1,431
41. IBM Credit Corporation Schedule 001 1,264 0 1,264
42. IBM Credit Corporation Schedule 002 1,264 0 1,264
43. IBM Credit Corporation Schedule 003 1,264 0 1,264
44. IBM Credit Corporation Schedule 004 1,264 0 1,264
45. IBM Credit Corporation Schedule 005 221 0 221
46. IBM Credit Corporation Schedule 006 221 0 221
47. IBM Credit Corporation Schedule 007 775 0 775
48. IBM Credit Corporation Schedule 008 908 0 908
49. IBM Credit Corporation Schedule 009 3,073 0 3,073
50. IBM Credit Corporation Schedule 010 475 0 475
51. IBM Credit Corporation Schedule 011 810 0 810
52. IBM Credit Corporation Schedule 012 1,334 0 1,334
53. IBM Credit Corporation Schedule 013 3,528 0 3,528
54. IBM Credit Corporation Schedule 014 4,922 0 4,922
55. IBM Credit Corporation Schedule 015 10,266 0 10,266
56. IBM Credit Corporation Schedule 016 1,765 0 1,765
57. IBM Credit Corporation Schedule 017 2,839 0 2,839
58. IBM Credit Corporation Schedule 018 4,193 0 4,193
59. IBM Credit Corporation Schedule 019 22,426 0 22,426
60. IBM Credit Corporation Schedule 020 37,838 0 37,838
61. IBM Credit Corporation Schedule 021 9,350 0 9,350
62. IBM Credit Corporation Schedule 022 1,169 0 1,169
TOTAL 955,480.64 350,328.77 605,151.87
====================================================================================================
Note: The rent payments made in May were for the June 1, 2003 to June 30,
2003 timeframe.
The May stub period rents were paid in June 2003.
Monthly Operating Report
- ----------------------------------------
CASE NAME: Daisytek, Incorporated ACCRUAL BASIS-7
B.A. Pargh Company
Virtual Demand, Inc.
- ----------------------------------------
- ----------------------------------------
CASE NUMBER: 03-34762-HDH-11 02/13/95, RWD, 2/96
- ----------------------------------------
MONTH: May 2003
-----------
QUESTIONNAIRE
================================================================================
YES NO
----- -----
- --------------------------------------------------------------------------------
1. HAVE ANY ASSETS BEEN SOLD OR TRANSFERRED OUTSIDE
THE NORMAL COURSE OF BUSINESS THIS REPORTING PERIOD? X
- --------------------------------------------------------------------------------
2. HAVE ANY FUNDS BEEN DISBURSED FROM ANY ACCOUNT
OTHER THAN A DEBTOR IN POSSESSION ACCOUNT? X
- --------------------------------------------------------------------------------
3. ARE ANY POSTPETITION RECEIVABLES (ACCOUNTS, NOTES, OR
LOANS) DUE FROM RELATED PARTIES? X
- --------------------------------------------------------------------------------
4. HAVE ANY PAYMENTS BEEN MADE ON PREPETITION LIABILITIES
THIS REPORTING PERIOD? X
- --------------------------------------------------------------------------------
5. HAVE ANY POSTPETITION LOANS BEEN RECEIVED BY THE
DEBTOR FROM ANY PARTY? X
- --------------------------------------------------------------------------------
6. ARE ANY POSTPETITION PAYROLL TAXES PAST DUE? X
- --------------------------------------------------------------------------------
7. ARE ANY POSTPETITION STATE OR FEDERAL INCOME TAXES
PAST DUE? X
- --------------------------------------------------------------------------------
8. ARE ANY POSTPETITION REAL ESTATE TAXES PAST DUE? X
- --------------------------------------------------------------------------------
9. ARE ANY OTHER POSTPETITION TAXES PAST DUE? X
- --------------------------------------------------------------------------------
10. ARE ANY AMOUNTS OWED TO POSTPETITION CREDITORS
DELINQUENT? X
- --------------------------------------------------------------------------------
11. HAVE ANY PREPETITION TAXES BEEN PAID DURING THE
REPORTING PERIOD? X
- --------------------------------------------------------------------------------
12. ARE ANY WAGE PAYMENTS PAST DUE? X
================================================================================
IF THE ANSWER TO ANY OF THE ABOVE QUESTIONS IS "YES," PROVIDE A DETAILED
EXPLANATION OF EACH ITEM. ATTACH ADDITIONAL SHEETS IF NECESSARY.
See attachments for Questions 1, 4 and 11
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
INSURANCE
================================================================================
YES NO
----- -----
- --------------------------------------------------------------------------------
1. ARE WORKER'S COMPENSATION, GENERAL LIABILITY AND OTHER
NECESSARY INSURANCE COVERAGES IN EFFECT? X
- --------------------------------------------------------------------------------
2. ARE ALL PREMIUM PAYMENTS PAID CURRENT? X
- --------------------------------------------------------------------------------
3. PLEASE ITEMIZE POLICIES BELOW.
================================================================================
IF THE ANSWER TO ANY OF THE ABOVE QUESTIONS IS "NO," OR IF ANY POLICIES HAVE
BEEN CANCELLED OR NOT RENEWED DURING THIS REPORTING PERIOD, PROVIDE AN
EXPLANATION BELOW. ATTACH ADDITIONAL SHEETS IF NECESSARY.
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
================================================================================================================================
INSTALLMENT PAYMENTS
- --------------------------------------------------------------------------------------------------------------------------------
TYPE OF PAYMENT AMOUNT
POLICY CARRIER PERIOD COVERED & FREQUENCY
- --------------------------------------------------------------------------------------------------------------------------------
Property Royal Indemnity Company 5/1/03 - 5/1/04 $ 409,804 annual
- --------------------------------------------------------------------------------------------------------------------------------
General Liability St. Paul Fire & Marine Insurance Company 5/1/03 - 5/1/04 $ 75,084 annual
- --------------------------------------------------------------------------------------------------------------------------------
Business Auto St. Paul Fire & Marine Insurance Company 5/1/03 - 5/1/04 $ 57,345 annual
- --------------------------------------------------------------------------------------------------------------------------------
Workers' Compensation St. Paul Fire & Marine Insurance Company 5/1/03 - 5/1/04 $ 297,172 annual
- --------------------------------------------------------------------------------------------------------------------------------
Cargo Indemnity Insurance Company of North America 5/1/03 - 5/1/04 $ 108,500 annual
- --------------------------------------------------------------------------------------------------------------------------------
Umbrella Liability (primary layer) St. Paul Fire & Marine Insurance Company 5/1/03 - 5/1/04 $ 50,974 annual
- --------------------------------------------------------------------------------------------------------------------------------
Umbrella Liability (excess layer) Federal Insurance Co. 5/1/03 - 5/1/04 $ 30,300 annual
- --------------------------------------------------------------------------------------------------------------------------------
Fiduciary Liability Federal Insurance Co. 4/1/03 - 4/1/04 $ 9,000 annual
- --------------------------------------------------------------------------------------------------------------------------------
Primary Directors & Officers National Union Fire Insurance Company 4/1/03 - 4/1/04 $ 1,100,000 annual
- --------------------------------------------------------------------------------------------------------------------------------
Excess D&O (1st layer) XL Specialty Insurance Co. 4/1/03 - 4/1/04 $ 1,250,000 annual
- --------------------------------------------------------------------------------------------------------------------------------
Extended Reporting Period
Purchased Excess D&O (1st layer) St. Paul Mercury Insurance Company 4/1/03 - 4/1/04 $ 354,375 annual
- --------------------------------------------------------------------------------------------------------------------------------
Extended Reporting Period
Purchased Excess D&O (2nd layer) Twin City Fire Insurance Company 4/1/03 - 4/1/04 $ 187,500 annual
- --------------------------------------------------------------------------------------------------------------------------------
Crime Gulf Insurance Company 4/1/03 - 4/1/04 $ 27,250 annual
================================================================================================================================
- ----------------------------------------
CASE NAME: Daisytek, Incorporated
B.A. Pargh Company
Virtual Demand, Inc.
- ----------------------------------------
- ----------------------------------------
CASE NUMBER: 03-34762-HDH-11
- ----------------------------------------
MOR #7 QUESTION # 1
ASSETS SOLD OR TRANSFERRED OUT OF THE NORMAL COURSE OF BUSINESS
Customer Transaction Type Extd Cost Extd Price
MEM-MEM TO ARLINGTON IND (CHI) Intercompany Sale 177,827.65 185,828.57
MEM-MEM TO ARLINGTON IND (CHI) Intercompany Sale 34,954.20 31,929.74
MEM-MEM TO ARLINGTON IND (CHI) Intercompany Sale 9,989.92 9,687.11
MEM-MEM TO ARLINGTON IND (CHI) Intercompany Sale 24,725.54 24,797.88
DZTK MEI-MDF (POST CH 11) Intercompany Sale 136,105.23 131,082.49
DAISYTEK CANADA Intercompany Sale 445.50 454.50
384,048.04 383,780.29
CASE NO. 03-34762-HDH-11
INTERIM ORDER PURSUANT TO SECTIONS 105,363(b) AND 363(f) OF
THE BANKRUPTCY CODE AUTHORIZING AND APPROVING
PROCEDURES AND SALE OF CERTAIN INVENTORY
- ------------------------------------------------------
CASE NAME: Daisytek, Incorporated
B.A. Pargh Company
Virtual Demand, Inc.
- ------------------------------------------------------
- ------------------------------------------------------
CASE NUMBER: 03-34762-HDH-11
- ------------------------------------------------------
MOR 7, QUESTION 4 SUPPORT
- --------------------------------------------------------------------------------
Sum of AMT$
- --------------------------------------------------------------------------------
CO VENDOR# VENDOR NAME Total
001 10004603 A T & T ($285.59)
-----------------------------------------------------------------------
10027127 A T & T ($16.30)
-----------------------------------------------------------------------
22610862 ADP "TTC" ($1,219.85)
-----------------------------------------------------------------------
13634192 ANDERSON DARREN ($1,625.35)
-----------------------------------------------------------------------
12763531 AT&T ($67,866.16)
-----------------------------------------------------------------------
13391274 AT&T ($992.29)
-----------------------------------------------------------------------
28037913 AT&T WIRELESS AURORA ($5,776.62)
-----------------------------------------------------------------------
13447856 BAUMGARTEN JOHN ($137.97)
-----------------------------------------------------------------------
28067397 BECKER MELODY ($200.02)
-----------------------------------------------------------------------
12648349 BELLSOUTH TTC ($3,327.98)
-----------------------------------------------------------------------
24831491 BOOTH, DALE ($253.80)
-----------------------------------------------------------------------
12741586 BRACELAND, ROBERT ($168.24)
-----------------------------------------------------------------------
28029374 CAPPER, BRUCE ($33.42)
-----------------------------------------------------------------------
28010518 CHEPENIK, MARK ($205.22)
-----------------------------------------------------------------------
28054545 CINGULAR WIRELESS ($2,158.09)
-----------------------------------------------------------------------
28050683 CITY OF RICHARDSON ($551.38)
-----------------------------------------------------------------------
13475048 CONNECTICUT GENERAL LIFE ($19,228.41)
-----------------------------------------------------------------------
28002850 CRIMMINS RICHARD ($95.16)
-----------------------------------------------------------------------
28005815 DAMON SR, NICK J. ($70.08)
-----------------------------------------------------------------------
24681525 DOHERTY, RALPH ($292.33)
-----------------------------------------------------------------------
28028048 FITZGERALD PATRICK ($80.15)
-----------------------------------------------------------------------
28115352 FITZPATRICK, JERRY ($224.62)
-----------------------------------------------------------------------
22710695 GUIDRY, JARED ($254.23)
-----------------------------------------------------------------------
22597784 KEARNEY JOHN D. ($620.18)
-----------------------------------------------------------------------
24777447 L&B DEPP ENTERPRISES II, INC ($10,257.07)
-----------------------------------------------------------------------
28126289 LASER ONE ($646.61)
-----------------------------------------------------------------------
28077982 LOGAN, ERIC ($68.49)
-----------------------------------------------------------------------
28124451 MCDANIEL, NATALIE ($75.00)
-----------------------------------------------------------------------
12634019 MEMPHIS LIGHT, GAS AND WATER ($24,302.71)
-----------------------------------------------------------------------
24677374 MITCHELL, RALPH ($245.68)
-----------------------------------------------------------------------
16328844 MORGAN GLENDA ($11.50)
-----------------------------------------------------------------------
28052072 NIAGARA MOHAWK ($23,391.08)
-----------------------------------------------------------------------
28047361 NIAGRA MOHAWK ($17,185.93)
-----------------------------------------------------------------------
28082669 O'CONNOR, JACKIE ($157.79)
-----------------------------------------------------------------------
28055311 PACIFIC GAS & ELECTRIC CO ($7,833.24)
-----------------------------------------------------------------------
10003117 POWELL JIM ($148.40)
-----------------------------------------------------------------------
12663864 PRINCIPAL LIFE INSURANCE CO ($18,676.32)
-----------------------------------------------------------------------
28043344 SALHANY, MIKE ($36.21)
-----------------------------------------------------------------------
24772873 SOUTHWESTERN BELL TELEPHONE ($688.73)
-----------------------------------------------------------------------
24772881 SOUTHWESTERN BELL TELEPHONE ($6,063.39)
-----------------------------------------------------------------------
13491881 STATE COMPTROLLER ($16,915.81)
-----------------------------------------------------------------------
28073674 TAYLOR GRADY ($2,489.64)
-----------------------------------------------------------------------
12788368 TENNESSEE DEPT OF REVENUE ($1,191.00)
-----------------------------------------------------------------------
21738602 TXU ELECTRIC "TDA" ($1,054.70)
-----------------------------------------------------------------------
22661301 TXU GAS "TDA" ($291.86)
-----------------------------------------------------------------------
12796827 U.S. DEPT OF LABOR ($2,000.00)
-----------------------------------------------------------------------
24802534 VERIZON WIRELESS DALLAS ($268.18)
-----------------------------------------------------------------------
28032354 WALPOLE, MARK ($298.47)
-----------------------------------------------------------------------
24689050 WEINER, LEE ($156.80)
-----------------------------------------------------------------------
12261030 WHARF, PETER ($214.11)
-----------------------------------------------------------------------
28019918 ZDEBLICK GORDON ($2,546.39)
- --------------------------------------------------------------------------------
Grand Total ($242,898.55)
- --------------------------------------------------------------------------------
- ----------------------------------------
CASE NAME: Daisytek, Incorporated
B.A. Pargh Company
Virtual Demand, Inc.
- ----------------------------------------
- ----------------------------------------
CASE NUMBER: 03-34762-HDH-11
- ----------------------------------------
MOR 7, QUESTION 11 SUPPORT
Jurisdiction Amount Date Paid Entity Tax Type Description
- ------------ ------ --------- ------ -------- -----------
Daisytek, Inc. and B.A. Pargh
- -----------------------------
TX 15,000.00 05/09/2003 Daisytek Franchise Tax 2003 (based on 2002 income)
US Dept of Labor 2,000.00 05/27/2003 Daisytek Form 5500 2001 Benefit Plan Return
TX 1,000.00 05/09/2003 BA Pargh Franchise Tax 2003 (based on 2002 income)
TN 933.00 05/14/2003 BA Pargh Sales Tax Prior Period Catch-up
TX 518.48 05/19/2003 Daisytek Sales Tax April 2003 Return
TX 397.33 05/19/2003 BA Pargh Sales Tax April 2003 Return
TN 258.00 05/19/2003 BA Pargh Sales Tax April 2003 Return
---------
20,106.81
=========
Payee Name Address City State Zip
---------- ------- ---- ----- ---
Comptroller of Public Accounts Austin TX 78774-0100
Comptroller of Public Accounts Austin TX 78774-0100
Tennessee Department of Revenue 500 Deaderick Street Nashville TN 37242
Comptroller of Public Accounts Austin TX 78774-0100
Comptroller of Public Accounts Austin TX 78774-0100
Tennessee Department of Revenue 500 Deaderick Street Nashville TN 37242