Monthly Operating Report
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CASE NAME: Arlington Industries, Inc. ACCRUAL BASIS
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- -------------------------------------------------
CASE NUMBER: 03-34762-HDH-11 02/13/95, RWD, 2/96
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- -------------------------------------------------
JUDGE: H.D. Hale
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UNITED STATES BANKRUPTCY COURT
NORTHERN DISTRICT OF TEXAS
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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
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PRINTED NAME OF PREPARER DATE
Monthly Operating Report
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CASE NAME: Arlington Industries, Inc. ACCRUAL BASIS-1
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- -------------------------------------------------
CASE NUMBER: 03-34762-HDH-11 02/13/95, RWD, 2/96
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COMPARATIVE BALANCE SHEET
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MONTH MONTH MONTH
SCHEDULE -----------------------------------------------
ASSETS AMOUNT May 2003
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1. UNRESTRICTED CASH $19,633 $111,524
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2. RESTRICTED CASH
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3. TOTAL CASH $19,633 $111,524 $0 $0
- --------------------------------------------------------------------------------------------------------------------
4. ACCOUNTS RECEIVABLE (NET) $11,170,376 $9,807,203
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5. INVENTORY $11,236,001 $9,196,777
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6. NOTES RECEIVABLE
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7. PREPAID EXPENSES $207,858 $561,385
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8. OTHER (ATTACH LIST)
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Credit card and other receivables $365,547 $486,508
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Prepaid merchandise $813,207 $4,460,080
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TOTAL OTHER $1,178,754 $4,946,588
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9. TOTAL CURRENT ASSETS $23,812,622 $24,623,477 $0 $0
====================================================================================================================
10. PROPERTY, PLANT & EQUIPMENT $1,269,806 $1,269,806
- --------------------------------------------------------------------------------------------------------------------
11. LESS: ACCUMULATED
DEPRECIATION/DEPLETION $768,160 $783,688
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12. NET PROPERTY, PLANT &
EQUIPMENT $501,646 $486,118 $0 $0
====================================================================================================================
13. DUE FROM INSIDERS $0
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14. OTHER ASSETS - NET OF
AMORTIZATION (ATTACH LIST)
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Goodwill $11,716,275 $11,716,275
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15. OTHER (ATTACH LIST) $0
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16. TOTAL ASSETS $36,030,543 $36,825,870 $0 $0
====================================================================================================================
POSTPETITION LIABILITIES
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17. ACCOUNTS PAYABLE $357,388
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18. TAXES PAYABLE $85,854
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19. NOTES PAYABLE
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20. PROFESSIONAL FEES
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21. SECURED DEBT
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22. OTHER (ATTACH LIST)
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Accrued expenses $85,879
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Other accounts payable $672,358
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23. TOTAL POSTPETITION
LIABILITIES $1,201,479 $0 $0
====================================================================================================================
PREPETITION LIABILITIES
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24. SECURED DEBT
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25. PRIORITY DEBT $137,031 $39,625
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26. UNSECURED DEBT $7,194,185 $7,093,180
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27. OTHER (ATTACH LIST)
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Other accounts payable $1,363,321 $522,313
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Accrued expenses $884,000 $884,000
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Intercompany payables $13,170,427 $13,645,433
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TOTAL OTHER $15,417,748 $15,051,746
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28. TOTAL PREPETITION LIABILITIES $22,748,964 $22,184,551 $0 $0
====================================================================================================================
29. TOTAL LIABILITIES $22,748,964 $23,386,030 $0 $0
====================================================================================================================
EQUITY
- --------------------------------------------------------------------------------------------------------------------
30. PREPETITION OWNERS' EQUITY $13,281,579 $13,281,579
- --------------------------------------------------------------------------------------------------------------------
31. POSTPETITION CUMULATIVE
PROFIT OR (LOSS) $158,261
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32. DIRECT CHARGES TO EQUITY
(ATTACH EXPLANATION)
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33. TOTAL EQUITY $13,281,579 $13,439,840 $0 $0
- --------------------------------------------------------------------------------------------------------------------
34. TOTAL LIABILITIES &
OWNERS' EQUITY $36,030,543 $36,825,870 $0 $0
====================================================================================================================
Monthly Operating Report
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CASE NAME: Arlington Industries, Inc. ACCRUAL BASIS-2
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- ----------------------------------------------------
CASE NUMBER: 03-34762-HDH-11 02/13/95, RWD, 2/96
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INCOME STATEMENT
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MONTH MONTH MONTH
-------------------------------------------------------------- QUARTER
REVENUES 5/7/03-5/31/03 TOTAL
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1. GROSS REVENUES $4,933,609
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2. LESS: RETURNS & DISCOUNTS $146,955
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3. NET REVENUE $4,786,654 $0 $0 $0
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COST OF GOODS SOLD
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4. MATERIAL
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5. DIRECT LABOR
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6. DIRECT OVERHEAD
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7. TOTAL COST OF GOODS SOLD $4,031,195 $0 $0 $0
====================================================================================================================
8. GROSS PROFIT $755,459 $0 $0 $0
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OPERATING EXPENSES
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9. OFFICER / INSIDER COMPENSATION
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10. SELLING & MARKETING $48,667
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11. GENERAL & ADMINISTRATIVE $353,043
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12. RENT & LEASE $47,973
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13. OTHER (ATTACH LIST)
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14. TOTAL OPERATING EXPENSES $449,683 $0 $0 $0
====================================================================================================================
15. INCOME BEFORE NON-OPERATING
INCOME & EXPENSE $305,776 $0 $0 $0
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OTHER INCOME & EXPENSES
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16. NON-OPERATING INCOME (ATT. LIST)
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17. NON-OPERATING EXPENSE (ATT. LIST)
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18. INTEREST EXPENSE
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19. DEPRECIATION / DEPLETION $15,515
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20. AMORTIZATION
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21. OTHER (ATTACH LIST)
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22. NET OTHER INCOME & EXPENSES $15,515 $0 $0 $0
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REORGANIZATION EXPENSES
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23. PROFESSIONAL FEES
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24. U.S. TRUSTEE FEES
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25. OTHER (ATTACH LIST)
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26. TOTAL REORGANIZATION EXPENSES $0 $0 $0 $0
====================================================================================================================
27. INCOME TAX $132,000
====================================================================================================================
28. NET PROFIT (LOSS) $158,261 $0 $0 $0
====================================================================================================================
Monthly Operating Report
- -----------------------------------------------
CASE NAME: Arlington Industries, Inc. ACCRUAL BASIS-3
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- -----------------------------------------------
CASE NUMBER: 03-34762-HDH-11 02/13/95, RWD, 2/96
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MONTH MONTH MONTH
CASH RECEIPTS AND ------------------------------------------------- QUARTER
DISBURSEMENTS 5/7/03-5/31/03 TOTAL
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1. CASH - BEGINNING OF MONTH $19,633 $111,524 $111,524
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RECEIPTS FROM OPERATIONS
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2. CASH SALES $0
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COLLECTION OF ACCOUNTS RECEIVABLE
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3. PREPETITION
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4. POSTPETITION $6,369,399
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5. TOTAL OPERATING RECEIPTS $6,369,399 $0 $0 $0
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NON - OPERATING RECEIPTS
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6. LOANS & ADVANCES (ATTACH LIST)
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7. SALE OF ASSETS $0
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8. OTHER (ATTACH LIST)
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Cash receipts transfers to Daisytek Inc. ($6,369,399)
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Payroll funding transfer from Daisytek Inc. $305,564
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Other cash transfers from Daisytek Inc. $5,220,609
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TOTAL OTHER ($843,226)
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9. TOTAL NON-OPERATING RECEIPTS ($843,226) $0 $0 $0
=================================================================================================================================
10. TOTAL RECEIPTS $5,526,173 $0 $0 $0
=================================================================================================================================
11. TOTAL CASH AVAILABLE $5,545,806 $111,524 $111,524 $0
=================================================================================================================================
OPERATING DISBURSEMENTS
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12. NET PAYROLL $242,756
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13. PAYROLL TAXES PAID $62,808
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14. SALES, USE & OTHER TAXES PAID $0
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15. SECURED / RENTAL / LEASES $53,688
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16. UTILITIES $7,699
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17. INSURANCE
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18. INVENTORY PURCHASES $4,592,675
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19. VEHICLE EXPENSES
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20. TRAVEL $6,742
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21. ENTERTAINMENT
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22. REPAIRS & MAINTENANCE
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23. SUPPLIES
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24. ADVERTISING
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25. OTHER (ATTACH LIST)
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Bank Fees $215
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Other operating $467,699
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TOTAL OTHER $467,914
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26. TOTAL OPERATING DISBURSEMENTS $5,434,282 $0 $0 $0
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REORGANIZATION EXPENSES
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27. PROFESSIONAL FEES
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28. U.S. TRUSTEE FEES
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29. OTHER (ATTACH LIST)
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30. TOTAL REORGANIZATION EXPENSES $0 $0 $0 $0
=================================================================================================================================
31. TOTAL DISBURSEMENTS $5,434,282 $0 $0 $0
=================================================================================================================================
32. NET CASH FLOW $91,891 $0 $0 $0
=================================================================================================================================
33. CASH - END OF MONTH $111,524 $111,524 $111,524 $0
=================================================================================================================================
Monthly Operating Report
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CASE NAME: Arlington Industries, Inc. ACCRUAL BASIS-4
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- -------------------------------------------
CASE NUMBER: 03-34762-HDH-11 02/13/95, RWD, 2/96
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MONTH MONTH MONTH
SCHEDULE --------------------------------------------
ACCOUNTS RECEIVABLE AGING AMOUNT May 2003
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1. 0-30 $10,776,600 $$9,159,443
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2. 31-60 $353,862 $538,222
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3. 61-90 $57,502 $146,545
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4. 91+ $429,674 $415,723
===========================================================================================================================
5. TOTAL ACCOUNTS RECEIVABLE $11,617,637 $10,259,933 $0 $0
===========================================================================================================================
6. AMOUNT CONSIDERED UNCOLLECTIBLE $447,261 $452,730
===========================================================================================================================
7. ACCOUNTS RECEIVABLE (NET) $11,170,376 $$9,807,203 $0 $0
===========================================================================================================================
MONTH: May 2003
AGING OF POSTPETITION TAXES AND PAYABLES -------------------------------
- ---------------------------------------------------------------------------------------------------------------------------
0-30 31-60 61-90 91+
TAXES PAYABLE DAYS DAYS DAYS DAYS TOTAL
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1. FEDERAL $82,701 $0 $0 $0 $82,701
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2. STATE $1,727 $0 $0 $0 $1,727
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3. LOCAL $1,426 $0 $0 $0 $1,426
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4. OTHER (ATTACH LIST) $0 $0 $0 $0 $0
===========================================================================================================================
5. TOTAL TAXES PAYABLE $85,854 $0 $0 $0 $85,854
===========================================================================================================================
6. ACCOUNTS PAYABLE $357,388 $357,388
===========================================================================================================================
STATUS OF POSTPETITION TAXES MONTH: May 2003
--------------
- ---------------------------------------------------------------------------------------------------------------------------
BEGINNING AMOUNT ENDING
TAX WITHHELD AND/ AMOUNT TAX
FEDERAL LIABILITY* 0R ACCRUED PAID LIABILITY
- ---------------------------------------------------------------------------------------------------------------------------
1. WITHHOLDING** $0 $30,759 $25,246 $5,513
- ---------------------------------------------------------------------------------------------------------------------------
2. FICA-EMPLOYEE** $0 $19,270 $15,185 $4,085
- ---------------------------------------------------------------------------------------------------------------------------
3. FICA-EMPLOYER** $0 $19,270 $15,185 $4,085
- ---------------------------------------------------------------------------------------------------------------------------
4. UNEMPLOYMENT $0 $99 $81 $18
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5. INCOME $0 $69,000 $0 $69,000
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6. OTHER (ATTACH LIST) $0 $0 $0 $0
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7. TOTAL FEDERAL TAXES $0 $138,398 $55,697 $82,701
===========================================================================================================================
STATE AND LOCAL
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8. WITHHOLDING $0 $7,527 $5,963 $1,564
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9. SALES $0 $0 $0 $0
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10. EXCISE $0 $0 $0 $0
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11. UNEMPLOYMENT $0 $1,387 $1,148 $239
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12. REAL PROPERTY $0 $0 $0 $
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13. PERSONAL PROPERTY $0 $1,350 $0 $1,350
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14. OTHER (ATTACH LIST) $0 $0 $0 $0
===========================================================================================================================
15. TOTAL STATE & LOCAL $0 $10,264 $7,111 $3,153
===========================================================================================================================
16. TOTAL TAXES $0 $148,662 $62,808 $85,854
===========================================================================================================================
* 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
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CASE NAME: Arlington Industries, Inc. ACCRUAL BASIS-5
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- ---------------------------------------------
CASE NUMBER: 03-34762-HDH-11 02/13/95, RWD, 2/96
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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
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<s> <c> <c> <c>
A. BANK: Bank One Suntrust
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B. ACCOUNT NUMBER: 5000174076 0008800770268 TOTAL
- ----------------------------------------------------------------------------------------------------------------------
C. PURPOSE (TYPE): Commercial Checking Petty Cash
====================================================================================================================================
1. BALANCE PER BANK STATEMENT $42,735 $7,988 $50,723
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2. ADD: TOTAL DEPOSITS NOT CREDITED $159,308 $159,308
- ------------------------------------------------------------------------------------------------------------------------------------
3. SUBTRACT: OUTSTANDING CHECKS $1,005,727 $1,005,727
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4. OTHER RECONCILING ITEMS $914,258 ($7,988) $906,270
- ------------------------------------------------------------------------------------------------------------------------------------
5. MONTH END BALANCE PER BOOKS $110,574 $0 $0 $110,574
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6. NUMBER OF LAST CHECK WRITTEN 62201
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INVESTMENT ACCOUNTS
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DATE OF TYPE OF PURCHASE CURRENT
BANK, ACCOUNT NAME & NUMBER PURCHASE INSTRUMENT PRICE VALUE
- ------------------------------------------------------------------------------------------------------------------------------------
7.
- ------------------------------------------------------------------------------------------------------------------------------------
8.
- ------------------------------------------------------------------------------------------------------------------------------------
9.
- ------------------------------------------------------------------------------------------------------------------------------------
10.
- ------------------------------------------------------------------------------------------------------------------------------------
11. TOTAL INVESTMENTS $0 $0
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CASH
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12. CURRENCY ON HAND $950
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Petty Cash for IL $450 and CA $500
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13. TOTAL CASH - END OF MONTH $111,524
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Monthly Operating Report
-------------------------------------------
CASE NAME: Arlington Industries, Inc. ACCRUAL BASIS-6
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-------------------------------------------
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. See Daisytek, Incorporated
------------------------------------------------------------------------
2.
------------------------------------------------------------------------
3.
------------------------------------------------------------------------
4.
------------------------------------------------------------------------
5.
------------------------------------------------------------------------
6. TOTAL PAYMENTS
TO INSIDERS $0 $0
------------------------------------------------------------------------
========================================================================================================
PROFESSIONALS
========================================================================================================
DATE OF COURT TOTAL
ORDER AUTHORIZING AMOUNT AMOUNT TOTAL PAID INCURRED
NAME PAYMENT APPROVED PAID TO DATE & UNPAID *
--------------------------------------------------------------------------------------------------------
1. See Daisytek, Incorporated
--------------------------------------------------------------------------------------------------------
2.
--------------------------------------------------------------------------------------------------------
3.
--------------------------------------------------------------------------------------------------------
4.
--------------------------------------------------------------------------------------------------------
5.
--------------------------------------------------------------------------------------------------------
6. TOTAL PAYMENTS
TO PROFESSIONALS $0 $0 $0 $0
--------------------------------------------------------------------------------------------------------
* 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. Manulife Insurance Co. 32,584.00 32,584.00 0.00
2. Shaheen & Co. 3,835.80 3,835.80 0.00
3. Carson Dominguez Properties 17,269 17,269 0.00
-------------------------------------------
TOTAL 53,688.34 53,688.34 0.00
------------------------------------------------------------------------------
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: Arlington Industries, Inc. ACCRUAL BASIS-7
- -------------------------------------------
- -------------------------------------------
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 attached schedule for Question 4 detail.
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
- --------------------------------------------------------------------------------
See Daisytek, Incorporated
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
- -------------------------------------------------
CASE NAME: Arlington Industries, Inc.
- -------------------------------------------------
- -------------------------------------------------
CASE NUMBER: 03-34762-HDH-11
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MOR 7
Question 4
Check# Vendor# Vendor Date Amount
189 504126 UPS 5/19/2003 10,693.02
187 504126 UPS 5/7/2003 26,262.66
----------
36,955.68