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<PAGE> 1
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 8-K
CURRENT REPORT PURSUANT TO SECTION 13 OR 15(d)
OF THE SECURITIES EXCHANGE ACT OF 1934
Date of Report (Date of earliest event reported ) August 22, 1997
---------------
CINCINNATI MICROWAVE, INC.
-----------------------------------------------------------
(Exact name of registrant as specified in its charter)
Ohio 0-13136 31-0903863
- ---------------------------- ----------- ----------------
(State or other jurisdiction (Commission (I.R.S. Employer
of incorporation) File Number) Identification No.)
One Microwave Plaza, Cincinnati, Ohio 45249-9502
- ------------------------------------- --------------
(Address of principal executive office) (Zip Code)
Registrant's telephone number, including area code (513) 489-5400
----------------------------
- --------------------------------------------------------------------------------
(Former name, former address and former fiscal year, if changed since last
report)
<PAGE> 2
Form 8-K Cincinnati Microwave, Inc.
Item 7. Financial Statements and Exhibits
---------------------------------
(c) Exhibits.
99(i) - Financial reports, as amended, as filed with the United States
Bankruptcy Court for the Southern District of Ohio, Western Division,
for the Company's operations during the period ended July 1997 (without
exhibits to the Monthly Cash Statement (Form 5)).
99(ii) - Agreement to provide omitted Schedules to Monthly Cash
Statement upon request.
SIGNATURES
----------
Pursuant to the requirements of the Securities Exchange Act of 1934, Cincinnati
Microwave, Inc. has duly caused this report to be signed on its behalf by the
undersigned thereunto duly authorized.
August 22, 1997
CINCINNATI MICROWAVE, INC.
By /s/ Kurt H. Stump
--------------------------------------------
Kurt H. Stump
President and Chief Executive Officer
<PAGE> 1
EXHIBIT 99(i)
FORM 1 (7/94)
IN THE UNITED STATES BANKRUPTCY COURT
FOR THE SOUTHERN DISTRICT OF OHIO
WESTERN DIVISION
In re: :
CASE NO: 97-10882
--------
: CHAPTER 11
CINCINNATI MICROWAVE, INC. JUDGE: Burton Perlman
- -------------------------- ----------------------
Debtor :
TRANSMITTAL OF FINANCIAL REPORTS AND
CERTIFICATION OF COMPLIANCE WITH OPERATING
REQUIREMENTS FOR
THE PERIOD ENDED : JULY , 1997
----------------
MONTH
As debtor in possession, I affirm:
1. That I have reviewed the financial statements attached hereto, consisting of:
X Operating Statement (Form 2)
---
X Balance Sheet (Form 3)
---
X Summary of Operations (Form 4)
---
X Monthly Cash Statement (Form 5)
---
X Statement of Compensation (Form 6)
--- -------------------------
and that they have been prepared in accordance with normal and customary
accounting practices, and fairly and accurately reflect the debtor's financial
activity for the period stated:
2. That the insurance as described in Section 4 of the Operating Instructions
and Reporting Requirements For Chapter 11 Cases IS/IS NOT in effect; and, (if
not, attach written explanation).
3. That all post petition taxes as described in Sections 1 and 14 of the
Operating Instructions and Reporting Requirements For Chapter 11 Cases ARE/ARE
NOT current. (if not, attach written explanation).
4. No professional fees (attorney, accountant, etc.) have been paid without
specific court authorization. Explain on separate sheet, if not true.
I HEREBY CERTIFY, UNDER PENALTY OF PERJURY, THAT THE INFORMATION PROVIDED HEREIN
IS TRUE AND CORRECT TO THE BEST OF MY INFORMATION AND BELIEF.
Dated: August 22, 1997 Kurt H. Stump
---------------- ------------------------------------------
Debtor in Possession
President and C.E.O. (513) 247-4206
------------------------- ----------------
Title Phone
<PAGE> 2
FORM 2 (7/94)
AMENDED OPERATING STATEMENT
Debtor : IN RE: CINCINNATI MICROWAVE, INC. Case No: 97 - 10882
------------------------------------ --------------
Month Ending : July 31, 1997
---------------
<TABLE>
<CAPTION>
TOTAL
CURRENT MONTH SINCE FILING
<S> <C> <C>
Total Revenue / Sales $ 154,347 $ 3,773,608
Cost of Sale $ 662,678 *** $ 3,124,754
----------------- -----------------
Gross Profit $ (508,331) $ 648,854
Expenses:
Officer Compensation $ 195,474 * $ 768,156 **
Employee Salaries $ 70,729 $ 935,435 **
Benefits & Pensions $ 0 $ 0
Payroll Taxes $ 0 $ 0
Other Taxes $ 20,440 $ 15,480
Rent & Lease Expense $ 0 $ 7,756
Interest Expense $ 3,501 $ 58,515
Insurance $ 0 $ 0
Auto & Truck Expenses $ 0 $ 530
Utilities $ 39,702 $ 189,473
Depreciation $ 0 $ 188,376
Travel & Entertainment $ 192 $ 2,769
Repairs & Maintenance $ 1,483 $ 7,186
Advertising $ 0 $ 101,387
Supplies, Office Expense $ 5,442 $ 42,658
Other : Relocation & Other $ 0 $ (20,146)
TOTAL EXPENSES $ 336,963 $ 2,297,575
NET OPERATING PROFIT / (LOSS) $ (845,294) $ (1,648,721)
Add: Non-Business Income:
Interest Income $ 0 $ 0
Other Income $ 3,008 $ 161,711
Less: Non-Business Expenses:
Professional Fees $ 63,450 $ 834,450
Other $ 0 $ 1,442
TOTAL NON-BUSINESS PROFIT / (LOSS) $ (60,442) $ (674,181)
----------------- -----------------
NET INCOME / (LOSS) $ (905,736) $ (2,322,902)
* Includes Executive Retention Bonus Accrual of
$125,000
** Retention Bonus accrual of $256,000 recorded in
June, was reclassified from Employee Salaries to
Officers Compensation in the Total Since Filing.
*** Cost of sales reflects 520K for final booking
of the sale of the modem business.
</TABLE>
<PAGE> 3
FORM 3 (7/94)
BALANCE SHEET
-------------
Debtor : CINCINNATI MICROWAVE, INC. Case 97 - 10882
-------------------------------- -------------
Month Ending : July 31, 1997
-----------------
<TABLE>
<CAPTION>
ASSETS CURRENT MONTH PRIOR MONTH AT FILING
<S> <C> <C> <C>
Cash: $ 3,476,943 $ 4,959,421 $ 724,343
Inventory: $ 875,140 $ 1,503,668 $ 5,643,874
Accts Rec.: $ 902,438 $ 5,506,338 $ 1,819,744
Insider Receivables: $ 0 $ 0 $ 0
Land & Buildings: $ 4,900,000 * $ 0 $ 12,492,980
Furn., Fixtures & Equip: $ 0 $ 0 $ 25,373,681
Accumulated Depreciation: $ 0 $ 0 $ (29,118,554)
Other: $ 111,533 $ 191,611 $ 1,120,823
----------------- ----------------- -----------------
TOTAL ASSETS: $ 10,266,054 $ 12,161,038 $ 18,056,891
TOTAL LIABILITIES:
Post Petition Liabilities:
Accts. Payable: $ 97,266 $ 86,744 $ 0
Wages & Salaries: $ 109,750 $ 256,000 $ 0
Taxes Payable: $ 0 $ 0 $ 0
Other: Accruals: $ 600,000 $ 550,000 $ 0
----------------- ----------------- -----------------
TOTAL Post-Petition Liab. $ 807,016 $ 892,744 $ 0
Secured Liabilities:
Subject to Post-Petition $ 0 $ 1,219,670 $ 3,794,500
Coll. or Financing Order $ 0 $ 0 $ 0
All Other Secured Liab. $ 0 $ 0 $ 0
TOTAL Secured Liab. $ 0 $ 1,219,670 $ 3,794,500
Pre-Petition Liabilities:
Taxes & Other Pri. Liab. $ 1,813,861 $ 1,963,464 $ 1,539,168
Unsecured Liabilities: $ 9,950,640 $ 9,771,925 $ 10,630,261
Other: Accruals & Estimates $ 5,109,225 $ 4,749,328 $ 6,237,879
-------------------- ----------------- ----------------- -----------------
TOTAL Pre-Petition Liab. $ 16,873,727 $ 16,484,717 $ 18,407,308
EQUITY:
Owners' Capital: $ 10,937,861 $ 10,937,861 $ 10,937,861
Retained Earnings-PrePet. $ (15,082,778) $ (15,082,778) $ (15,082,778)
Retained Earnings-PostPet. $ (3,269,772) $ (2,291,176) $ 0
----------------- ----------------- -----------------
Total Equity $ (7,414,689) $ (6,436,093) $ (4,144,917)
TOTAL LIAB. & EQUITY $ 10,266,054 $ 12,161,038 $ 18,056,891
</TABLE>
* -- $400,000 of Restricted Cash (escrow for building sale) and $4.5
million of Accounts Receivable relating to the sale of CMI's land and
building to Escort Acquisition Corporation was reclassified to Land
and Buildings due to Escort Acquisition Corp's failure to close. The
Land and Building is currently held for sale and negotiations with
several interested parties are underway.
<PAGE> 4
IN RE: CINCINNATI MICROWAVE, INC.
Case No: 97 - 10882
-----------------
SCHEDULE ATTACHED TO:
BALANCE SHEET (FORM 3)
JULY 31, 1997
STATEMENT OF RETAINED EARNINGS - POST PETITION
<TABLE>
<CAPTION>
<S> <C>
Retained Earnings - March 31, 1997 $ (311,156)
Plus: Current Earnings - Month of April $ 181,945
Less: Prior Period Adjustment $ (114,893)
--------------
Retained Earnings - April 30, 1997 $ (244,104)
==============
Plus: Current Earnings - Month of May $ (112,075)
Less: Prior Period Adjustment $ (105,576)
--------------
Retained Earnings - May 31, 1997 $ (461,755)
==============
Plus: Current Earnings - Month of June $ (1,180,787)
Less: Prior Period Adjustment $ (648,634)
--------------
Retained Earnings - June 30, 1997 $ (2,291,176)
==============
Plus: Current Earnings - Month of July $ (905,736)
Less: Prior Period Adjustment $ (72,860)
--------------
Retained Earnings - July 31, 1997 $ (3,269,772)
==============
</TABLE>
<PAGE> 5
FORM 4 (7/94)
SUMMARY OF OPERATIONS
---------------------
Debtor : CIN. MICROWAVE Period Ended: July 31, 1997 Case 97 - 10882
------------------ ---------------- ------------
<TABLE>
<CAPTION>
TAXES PAYABLE SCHEDULE
----------------------
Beginning Accrued / Payment / Ending
Balance Withheld Deposit Balance
-------------------------------------------------------------------
<S> <C> <C> <C> <C>
Income Taxes
Federal: $ 0.00 $ 92,744.37 $ (92,744.37) $ 0.00
State: $ 0.00 $ 15,843.68 $ (15,843.68) $ 0.00
Local: $ (40.00) $ 0.00 $ 0.00 $ (40.00)
FICA Withheld: $ (906.00) $ 6,534.54 $ (8,454.10) $ (2,825.56)
Employers FICA $ (906.01) $ 6,534.54 $ (8,454.11) $ (2,825.58)
Unemployment Tax
Federal: $ (11.37) $ 15.65 $ (1,360.23) $ (1,355.95)
State: $ (46.35) $ 64.57 $ (452.20) $ (433.98)
Sales, Use & Excise
Sales Tax: $ 2,382.49 $ 0.00 $ (234.57) $ 2,147.92
Real Estate Tax: $ (72,737.00) $(20,000.00) $ 0.00 $ (92,737.00)
Property Taxes: $ (594,857.33) $ 0.00 $ 0.00 $ (594,857.33)
Use Tax: $ 440.00 $ 675.00 $ (440.00) $ 675.00
Other: Worker's, etc. $ (4,481.32) $ 667.96 $ (1,640.70) $ (5,454.06)
TOTALS: $ (671,162.89) $103,080.31 $ (129,623.96) $ (697,706.54)
AGING OF ACCOUNTS RECEIVABLE
AND POST PETITION ACCOUNTS PAYABLE
Age in Days 0-30 30-60 Over 60
Post Petition
Accts. Payable $ 97,266 $ 0 $ 0
Accts. Rec. $ 187,002 $ 4,556 $ 710,880
</TABLE>
FOR ALL POST-PETITION ACCOUNTS PAYABLE OVER 30 DAYS OLD, PLEASE ATTACH A SHEET
LISTING EACH SUCH ACCOUNT, TO WHOM IT IS OWED, THE DATE THE ACCOUNT WAS OPENED,
AND THE REASON FOR NON-PAYMENT OF THE ACCOUNT.
Describe events or factors occurring during this reporting period materially
affecting operations and formulation of a Plan of Reorganization.
<PAGE> 6
FORM 5 (7/94)
MONTHLY CASH STATEMENT
----------------------
Debtor : CINCINNATI MICROWAVE, INC. Statement for the period:
----------------------------------
Case No: 97 - 10882 From: July 1, 1997 To: July 31, 1997
-------------- ---------------- ---------------
Cash Activity Analysis (Cash Basis Only):
<TABLE>
<CAPTION>
General Payroll Tax Cash Coll.
Acct. Acct. Acct. Acct.
----- ----- ----- -----
<S> <C> <C> <C> <C>
A. Beginning Balance $4,959,421
B. Receipts, Attach $ 206,569
separate schedule: ----------
C. Balance Available $5,165,990
(A + B)
D. Less, Disbursements $1,289,047
Attach separate schedule:
Less, Reclassification of $ 400,000
Escrow funds for sale
of land and building ----------
E. ENDING BALANCE $ 0 $ 0 $ 0 $3,476,943
(C + D)
(PLEASE ATTACH COPIES OF MOST RECENT RECONCILED BANK STATEMENTS FROM EACH
ACCOUNT)
General Account:
1. Depository Name & Add. Fifth Third Bank Cincinnati, OH
-------------------------------------------------------------------
2. Account Number Cash Collateral Accts 728-51998, 999-41002, 733-55267, 727-19671
-------------------------------------------------------------------
Payroll Account:
1. Depository Name & Add.
-------------------------------------------------------------------
2. Account Number
-------------------------------------------------------------------
Tax Account:
1. Depository Name & Add.
-------------------------------------------------------------------
2. Account Number
-------------------------------------------------------------------
OTHER MONIES ON HAND (SPECIFY TYPE AND LOCATION) (I.E. CD'S, PETTY CASH, ETC.)
Approximately $500 in petty cash. Included in book cash is a reserve of $500,000 maintained by the credit
card company to offset claims, etc. and $250,000 in escrow for various sales of assets.
Date : August 22, 1997 Kurt H. Stump
------------------------- --------------------------------
Debtor in Possession
</TABLE>
<PAGE> 7
Form 6 (7/94)
MONTHLY STATEMENT OF COMPENSATION
---------------------------------
The following information is to be provided for each shareholder, officer,
director, manager, insider, or owner that is employed by the debtor in
possession. ATTACH ADDITIONAL PAGES IF NECESSARY.
Name: ERIKA WILLIAMS Capacity: Principal
------------------ ----
X Officer
----
X Director
----
Insider
----
Detailed Description of Duties Daily responsibilities of President and Chief
-------------------------------------------------
Executive Officer.
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
- ---------------
<TABLE>
<CAPTION>
CURRENT COMPENSATION PAID: WEEKLY or MONTHLY
<S> <C> <C>
* $214,615
---------- ----------
CURRENT BENEFITS RECEIVED: WEEKLY or MONTHLY
Health Insurance $1,000
---------- ----------
Life Insurance
---------- ----------
Retirement
---------- ----------
Company Vehicle
---------- ----------
Entertainment
---------- ----------
Travel
---------- ----------
Other Benefits
---------- ----------
CURRENT TOTAL:
WEEKLY or MONTHLY
$ 0 $ 215,615
---------- ----------
* Includes Retention Bonus of $180,000 per Court Order
Date: August 22, 1997
------------------------ -------------------------------------
Principal, Officer, Director, Insider
</TABLE>
<PAGE> 8
Form 6 (7/94)
MONTHLY STATEMENT OF COMPENSATION
---------------------------------
The following information is to be provided for each shareholder, officer,
director, manager, insider, or owner that is employed by the debtor in
possession. ATTACH ADDITIONAL PAGES IF NECESSARY.
Name: KURT H. STUMP Capacity: Principal
------------------ ---
X Officer
----
X Director
----
Insider
----
Detailed Description of Duties Daily work activities of Chief Financial
-----------------------------------------------
Officer, Director, and Treasurer
- -------------------------------------------------------------------------------
- -------------------------------------------------------------------------------
- ----------------
<TABLE>
<CAPTION>
CURRENT COMPENSATION PAID: WEEKLY or MONTHLY
<S> <C> <C>
* $80,481
------ -------
CURRENT BENEFITS RECEIVED: WEEKLY or MONTHLY
Health Insurance $1,000
------ -------
Life Insurance
------ -------
Retirement
------ -------
Company Vehicle
------ -------
Entertainment
------ -------
Travel
------ -------
Other Benefits
------ -------
CURRENT TOTAL:
Weekly or Monthly
$ 0 $ 81,481
------ -------
* Includes Retention Bonus of $67,500 per Court Order
Date: August 22, 1997
----------------- -------------------------------------
Principal, Officer, Director, Insider
</TABLE>
<PAGE> 9
Form 6 (7/94)
MONTHLY STATEMENT OF COMPENSATION
---------------------------------
The following information is to be provided for each shareholder, officer,
director, manager, insider, or owner that is employed by the debtor in
possession. ATTACH ADDITIONAL PAGES IF NECESSARY.
Name: CARROLL J. HALVA Capacity: Principal
------------------- ----
X Officer
----
Director
----
Insider
----
Detailed Description of Duties Daily work activities of Vice President -
------------------------------------------------
Manufacturing
- -------------------------------------------------------------------------------
- -------------------------------------------------------------------------------
- -----------------------
<TABLE>
<CAPTION>
CURRENT COMPENSATION PAID: WEEKLY or MONTHLY
<S> <C> <C>
$11,954
------- -------
CURRENT BENEFITS RECEIVED: WEEKLY or MONTHLY
Health Insurance
------- -------
Life Insurance
------- -------
Retirement
------- -------
Company Vehicle
------- -------
Entertainment
------- -------
Travel
------- -------
Other Benefits
------- -------
CURRENT TOTAL:
WEEKLY or MONTHLY
$ 0 $11,954
------- -------
</TABLE>
Date: August 22, 1997
-------------------- ------------------------------------------
Principal, Officer, Director, Insider
<PAGE> 10
Form 6 (7/94)
MONTHLY STATEMENT OF COMPENSATION
---------------------------------
The following information is to be provided for each shareholder, officer,
director, manager, insider, or owner that is employed by the debtor in
possession. ATTACH ADDITIONAL PAGES IF NECESSARY.
Name: JOSEPH MARSHALL Capacity: Principal
------------------ ----
X Officer
----
Director
----
Insider
----
Detailed Description of Duties Daily work activities of Vice President -
------------------------------------------------
Materials
- -------------------------------------------------------------------------------
- -------------------------------------------------------------------------------
- ------------------
<TABLE>
<CAPTION>
CURRENT COMPENSATION PAID: WEEKLY or MONTHLY
<S> <C> <C>
* $ 34,674
-------- ----------
CURRENT BENEFITS RECEIVED: WEEKLY or MONTHLY
Health Insurance $ 791
-------- ----------
Life Insurance
-------- ----------
Retirement
-------- ----------
Company Vehicle
-------- ----------
Entertainment
-------- ----------
Travel
-------- ----------
Other Benefits
-------- ----------
CURRENT TOTAL:
WEEKLY or MONTHLY
$ 0 $ 35,465
-------- ----------
* Includes Retention Bonus of $23,750 per Court Order
Date: August 22, 1997
--------------------------- --------------------------------------
Principal, Officer, Director, Insider
</TABLE>
<PAGE> 11
IN RE: CINCINNATI MICROWAVE, INC.
Case No: 97 - 10882
---------------
SCHEDULE ATTACHED TO:
MONTHLY CASH STATEMENT
JULY 31, 1997
SUPPLEMENT TO DISBURSEMENTS
<TABLE>
<CAPTION>
<S> <C>
RADAR CASH a/c 0010 $ 49,985.72
SYSTEM CHECKS a/c 0020 $ 0.00
MANUAL CHECKS a/c 0021 $ 59,356.41
WIRE TRANSFERS a/c 0022 $ 1,179,704.66
----------------------
TOTAL DISBURSEMENTS $ 1,289,046.79
======================
</TABLE>
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