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): December 31, 1998
American Rice, Inc.
(Exact name of registrant as specified in its charter)
Texas
(State or other jurisdiction of incorporation)
0-17039 76-0231626
(Commission File Number) (I.R.S. Employer
Identification No.)
411 N. Sam Houston Parkway E.
Houston, Texas 77060
(Address of Principal (Zip Code)
Executive Offices)
(281) 272-8800
(Registrant's telephone number, including area code)
Not Applicable
(Former name or former address, if changed since last report
<PAGE>
Item 5. Other Events
Monthly Operating Reports filed with United States Trustee
As previously reported on Form 8-K, on August 11, 1998 American Rice, Inc.
(the "Company") filed a voluntary petition for reorganization under Chapter 11
of the U.S. Bankruptcy Code with the U.S. Bankruptcy Court for the Southern
District of Texas, Corpus Christi Division. Pursuant to Federal Rule of
Bankruptcy Procedure 2015 and the United States Trustee's Operating Guidelines
and Reporting Requirements for Chapter 11 cases, the Company must file a
Monthly Operating Report ("MOR") with the Office of the United States Trustee.
The MOR covering the period from inception of the bankruptcy through December
31, 1998 was filed with the Office of the United States Trustee on January 20,
1999. A copy of this MOR is attached hereto as Exhibit 99 and is incorporated
herein by reference.
Item 7. Financial Statement and Exhibits
(c) Exhibits
Exhibit 99 - Monthly Operating Report
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the
registrant has duly caused this report to be signed on its behalf by the
undersigned hereunto duly authorized.
Date: January 25, 1999 American Rice, Inc.
--------------------
(Registrant)
By: /s/ Joseph E. Westover
----------------------
Joseph E. Westover
Vice President and
Controller
CASE NAME: AMERICAN RICE, INC. UNITED STATES BANKRUPTCY COURT
CASE NUMBER: 98-21254-C-11 (RSS) SOUTHERN DISTRICT OF TEXAS
PETITION FILING DATE: AUGUST 11, 1998 CORPUS CHRISTI DIVISION
MONTHLY OPERATING REPORT SUMMARY FOR MONTH ENDING DECEMBER 31, 1998
<TABLE>
<CAPTION>
($ Thousands)
MONTH (1) Sept. 30 (2) Oct. 31 Nov. 30 Dec. 31
<S> <C> <C> <C> <C>
REVENUES (MOR-6) $36,694 $25,182 $18,450 $20,992
INCOME (LOSS) BEFORE INT, DEPREC./TAX (26) (390) 627 1,097
NET INCOME (LOSS) (MOR-6) (2,455) (2,461) (835) (330)
PAYMENTS TO INSIDERS (MOR-9) 390 293 256 220
PAYMENTS TO PROFESSIONALS (MOR-9) 98 174 65 532
TOTAL DISBURSEMENTS (MOR-8) 49,935 43,904 51,265 42,322
</TABLE>
REQUIRED INSURANCE MAINTAINED
AS OF SIGNATURE DATE EXP.
DATE
CASUALTY YES(X) NO( ) 5/1/99
LIABILITY YES(X) NO( ) 4/2/99
VEHICLE YES(X) NO( ) 4/2/99
WORKERS YES(X) NO( ) 2/1/99
OTHER YES(X) NO( ) 4/1/99
Are all accounts receivable being collected within terms? No.
Are all post-petition liabilities, including taxes, being paid
within terms ? Yes.
Have any pre-petition liabilities been paid? Yes.
If so, describe. Court authorized payments to customers,
processor liens, non-debtor subsidiaries to extent of proceeds.
Are all funds received being deposited into DIP bank account? Yes.
Were any assets disposed of outside of the normal course of
business ? No. If so, describe.
Are all U. S. Trustee quarterly fee payments current? Yes.
What is the status of your Plan of Reorganization? In process.
I certify under penalty of perjury that the following complete
Monthly Operating Report (MOR), consisting of MOR-1 through
MOR-9 plus attachments, is true and correct.
SIGNED: /s/ Joseph E. Westover
TITLE: Vice-President
MOR-1 Footnotes follow MOR-9
<PAGE>
CASE NAME: AMERICAN RICE, INC.
CASE NUMBER: 98-21254-C-11 (RSS)
<TABLE>
<CAPTION>
COMPARATIVE BALANCE SHEETS
($ Thousands) Filing Date
MONTH Aug. 11 (1) Sept. 30 Oct. 31 Nov. 30 Dec. 31
<S> <C> <C> <C> <C> <C>
ASSETS
CURRENT ASSETS
Cash $913 $1,071 $216 $795 $541
Accounts receivable, net (MOR-5) 33,914 39,725 34,456 33,667 28,317
Inventory: lower of cost or market 67,692 63,005 28,561 30,255 33,151
Prepaid expenses 3,603 3,468 1,727 1,595 2,612
Investments - - - - -
Other - - 1,000 1,000 1,000
TOTAL CURRENT ASSETS 106,122 107,269 65,960 67,312 65,621
PROPERTY, PLANT, & EQUIPMENT @ COST 66,866 67,072 56,405 56,405 56,409
Less accumulated depreciation (27,631) (28,081) (26,768) (26,965) (27,227)
NET BOOK VALUE OF PP&E 39,235 38,991 29,637 29,440 29,182
OTHER ASSETS
TAX DEPOSITS - - - - -
INVESTMENTS IN SUBS (2) (2,472) (2,015) (2,225) (2,490) (2,491)
OTHER INVESTMENTS (3) 1,134 1,175 698 698 698
TRADEMARKS 11,847 11,801 11,416 11,387 11,361
RECEIVABLE FROM ERLY INDUSTRIES (4) 9,738 10,054 9,935 9,935 9,935
OTHER 1,708 1,666 689 689 689
TOTAL OTHER ASSETS 21,955 22,681 20,513 20,219 20,192
TOTAL ASSETS $167,312 $168,941 $116,110 $116,971 $114,995
</TABLE>
MOR-2 Footnotes follow MOR-9
<PAGE>
CASE NAME: AMERICAN RICE, INC.
CASE NUMBER: 98-21254-C-11 (RSS)
<TABLE>
<CAPTION>
COMPARATIVE BALANCE SHEETS
($ Thousands) Filing Date
MONTH Aug. 11 (1) Sept. 30 Oct. 31 Nov. 30 Dec. 31
<S> <S> <S> <S> <S> <S>
LIABILITIES AND OWNER'S EQUITY
LIABILITIES
POST PETITION LIABILITIES (MOR-4,5) - $28,703 $53,540 $57,926 $59,457
PRE-PETITION LIABILITIES:
Notes payable - secured 192,900 165,454 114,545 112,652 112,652
Priority debt 448 448 448 448 448
Federal income tax - - - - -
FICA / withholding - - - - -
Unsecured debt 30,157 32,774 28,013 26,253 26,803
Other (2) 27,261 27,261 7,687 8,670 4,943
TOTAL PRE-PETITION LIABILITIES 250,766 225,937 150,693 148,023 144,846
TOTAL LIABILITIES 250,766 254,640 204,233 205,949 204,303
OWNER'S EQUITY (DEFICIT)
PREFERRED STOCK 3,878 3,878 3,878 3,878 3,878
COMMON STOCK 2,444 2,444 2,444 2,444 2,444
ADDITIONAL PAID-IN CAPITAL 25,286 25,286 25,286 25,286 25,286
RETAINED EARNINGS: post filing date - (2,455) (4,916) (5,751) (6,081)
RETAINED EARNINGS: filing date (112,685) (112,685) (112,685) (112,685) (112,685)
FOREIGN CURRENCY TRANS. ADJS. (2,377) (2,167) (2,130) (2,150) (2,150)
TOTAL OWNER'S EQUITY (83,454) (85,699) (88,123) (88,978) (89,308)
TOTAL LIABILITIES AND EQUITY $167,312 $168,941 $116,110 $116,971 $114,995
</TABLE>
MOR-3 Footnotes follow MOR-9
<PAGE>
CASE NAME: AMERICAN RICE, INC.
CASE NUMBER: 98-21254-C-11 (RSS)
<TABLE>
<CAPTION>
SCHEDULE OF POST-PETITION LIABILITIES
($ Thousands)
MONTH Sept. 30 Oct. 31 Nov. 30 Dec. 31
<S> <C> <C> <C> <C>
TRADE ACCOUNTS PAYABLE $482 $584 $2,484 $2,332
TAX PAYABLE
Federal payroll taxes - - - -
State payroll taxes - - - -
Ad valorem taxes - - 107 147
other - - - -
TOTAL TAXES PAYABLE - - 107 147
SECURED DEBT POST PETITION 21,950 42,622 45,222 48,133
ACCRUED INTEREST PAYABLE 630 579 426 505
PROFESSIONAL FEES 1,483 1,515 1,640 1,990
OTHER ACCRUED LIABILITIES
Growers 448 1,871 1,696 1,967
Other 3,710 6,369 6,351 4,383
TOTAL POST-PETITION LIABILITIES (MOR-3) $28,703 $53,540 $57,926 $59,457
</TABLE>
MOR-4 Footnotes follow MOR-9
<PAGE>
CASE NAME: AMERICAN RICE, INC.
CASE NUMBER: 98-21254-C-11 (RSS)
POST-PETITION TRADE ACCOUNTS AND TAXES PAYABLE
DECEMBER, 1998
($ Thousands)
TRADE FEDERAL STATE AD
DAYS TOTAL ACCTS TAXES TAXES VALOREM OTHER
0-30 $58,458 $1,333 - - $147 $56,978
31-60 622 622 - - - -
61-90 162 162 - - - -
91+ 215 215 - - - -
TOTAL (MOR- $59,457 $2,332 - - $147 $56,978
AGING OF ACCOUNTS RECEIVABLE
MONTH Sept. 30 Oct. 31 Nov. 30 Dec. 31
0-30 $35,790 $27,852 $29,202 $21,646
31-60 1,745 1,679 2,869 4,019
61-90 910 798 316 1,586
91+ 1,280 4,127 1,280 1,066
TOTAL (MOR- $39,725 $34,456 $33,667 $28,317
MOR-5 Footnotes follow MOR-9
<PAGE>
CASE NAME: AMERICAN RICE, INC.
CASE NUMBER: 98-21254-C-11 (RSS)
<TABLE>
<CAPTION>
STATEMENT OF INCOME (LOSS)
($ Thousands) FILING
MONTH Sept. 30 Oct. 31 Nov. 30 Dec. 31 TO DATE
<S> <C> <C> <C> <C> <C>
REVENUES $36,694 $25,182 $18,450 $20,992 $101,318
COST OF SALES 31,874 21,625 16,756 18,192 88,447
GROSS PROFIT 4,820 3,557 1,694 2,800 12,871
OPERATING EXPENSES
Sales, general and administrative 4,456 3,654 811 1,483 10,404
Insider's compensation 390 293 256 220 1,159
Professional fees - - - - -
Other - - - - -
TOTAL OPERATING EXPENSES 4,846 3,947 1,067 1,703 11,563
INCOME BEFORE INT, DEPREC./TAX (MOR-1) (26) (390) 627 1,097 1,308
INTEREST EXPENSE 1,130 864 421 504 2,919
DEPRECIATION 450 346 269 296 1,361
OTHER (INCOME) EXPENSE 12 10 6 15 43
INTEREST IN (EARNINGS) LOSSES / OF SUBS. (246) 247 245 2 248
REORGANIZATION EXPENSE 1,083 604 521 610 2,818
OTHER - - - - -
NET INCOME BEFORE TAXES (2,455) (2,461) (835) (330) (6,081)
FEDERAL INCOME TAX - - - - -
NET INCOME (LOSS) (MOR-1) ($2,455) ($2,461) ($835) ($330) ($6,081)
</TABLE>
MOR-6 Footnotes follow MOR-9
<PAGE>
CASE NAME: AMERICAN RICE, INC.
CASE NUMBER: 98-21254-C-11 (RSS)
<TABLE>
<CAPTION>
STATEMENT OF SOURCES AND USES OF CASH
($ Thousands) FILING
MONTH Sept. 30 Oct. 31 Nov. 30 Dec. 31 TO DATE
<S> <C> <C> <C> <C> <C>
NET INCOME (LOSS) (MOR-6) - - - - -
ADD: DEPRECIATION & AMORTIZATION - (1,313) 197 262 (854)
CASH GENERATED FROM OPERATIONS - (1,313) 197 262 (854)
ADD: DECREASE IN ASSETS
Accounts receivable - 5,269 789 5,350 11,408
Inventory 4,687 34,444 - - 39,131
Prepaid expenses 135 1,741 132 - 2,008
Property, plant, and equipment - 10,667 - - 10,667
Other (1) 210 2,205 274 27 2,716
ADD: INCREASE IN LIABILITIES
Post-petition liabilities 28,703 24,837 4,386 1,531 59,457
Pre-petition liabilities - - - - -
TOTAL SOURCES OF CASH (A) 33,735 77,850 5,778 7,170 124,533
USES OF CASH:
INCREASES IN ASSETS
Accounts receivable 5,811 - - - 5,811
Inventory - - 1,694 2,896 4,590
Prepaid expenses - - - 1,017 1,017
Property, plant, and equipment 206 - - 4 210
Other 726 1,000 - - 1,726
DECREASES IN LIABILITIES
Post-petition liabilities - - - - -
Pre-petition liabilities 24,829 75,244 2,670 3,177 105,920
TOTAL USES OF CASH (B) 31,572 76,244 4,364 7,094 119,274
NET SOURCES (USES) OF CASH (A-B) 2,163 1,606 1,414 76 5,259
CASH - BEGINNING BALANCE 913 3,076 4,682 6,096 913
CASH - ENDING BALANCE (MOR-2) $3,076 $4,682 $6,096 $6,172 $6,172
</TABLE>
MOR-7 Footnotes follow MOR-9
<PAGE>
CASE NAME: AMERICAN RICE, INC.
CASE NUMBER: 98-21254-C-11 (RSS)
<TABLE>
<CAPTION>
CASH ACCOUNT RECONCILIATION
DECEMBER, 1998
($ Thousands)
BANK NAME CIBC(1) CIBC (1) Nat'bank So'west Wells Far. 1st Union
ACCOUNT NUMBER 04- 26623 - Bank 4159 - 2000000 -
40213 1338315 73389 328170 702372 371753
ACCOUNT TYPE Lockbox Operating Operating Lockbox Lockbox Operating
<S> <C> <C> <C> <C> <C> <C>
BANK BALANCE $175 $28 $39 $184 $49 $126
DEPOSITS IN TRANSIT - - - - - -
OUTSTANDING CHECKS - - - - - -
ADJUSTED BANK BALANCE $175 $28 $39 $184 $49 $126
BEGINNING CASH PER BOOKS $472 $28 $34 - $173 $219
RECEIPTS 173 - - 2,368 2,662 23,059
TRANSFERS BETWEEN ACCOUNTS (470) - 320 (2,181) (2,785) (5,926)
CHECKS / OTHER DISBURSEMENTS(2) - - (315) (3) (1) (17,226)
ENDING CASH PER BOOKS (MOR-2) $175 $28 $39 $184 $49 $126
</TABLE>
<TABLE>
<CAPTION>
BANK NAME 1st Union 1st Union Harris
ACCOUNT NUMBER 207989 - 207992 - Trust
1226349 19508 173-846-7 Petty
ACCOUNT TYPE Collateral Disbursemen Operating Cash & Adjs(2) Total
<S> <C> <C> <C> <C> <C> <C>
BANK BALANCE $754 - ($22) $36 - $601
DEPOSITS IN TRANSIT - - - - 104 -
OUTSTANDING CHECKS - (932) - - - -
ADJUSTED BANK BALANCE $754 ($932) ($22) $36 $104 $601
BEGINNING CASH PER BOOKS $63 ($2,105) $12 $36 $1,863 $926
RECEIPTS 15,304 - 261 - (1,759) 28,262
TRANSFERS BETWEEN ACCOUNTS 5,536 5,606 (100) - - (11,042)
CHECKS / OTHER DISBURSEMENTS (20,149) (4,433) (195) - - (17,545)
-
ENDING CASH PER BOOKS (MOR-2) $754 ($932) ($22) $36 $104 $601
</TABLE>
CASH RECEIPTS AND DISBURSEMENTS
MONTH Sept. 30 Oct. 31 Nov. 30 Dec. 31
BEGINNING CASH $455 $1,071 $216 $795
TOTAL RECEIPTS 50,551 43,049 51,844 28,262
TOTAL DISBURSEMENTS (MOR-1) (49,935) (43,904) (51,265) (17,545)
ENDING CASH (MOR-2) $1,071 $216 $795 $11,512
MOR-8 Footnotes follow MOR-9
<PAGE>
CASE NAME: AMERICAN RICE, INC.
CASE NUMBER: 98-21254-C-11 (RSS)
PAYMENTS TO INSIDERS AND PROFESSIONALS
INSIDERS COMP.
NAME TYPE Sept. 30 Oct. 31 Nov. 30 Dec. 31
Bill McFarland Salary $31,333 $18,631 $35,283 -
Bill McFarland Expenses - 35,425 - 1,266
C.B. Schultz Salary 16,745 9,956 9,504 9,956
C.B. Schultz Expenses 868 1,016 - 3,044
Dan Kelly Salary 15,034 8,939 13,206 26,150
Dan Kelly Expenses 12,807 8,769 - 4,906
David Kay Salary 16,529 9,828 9,381 9,828
David Kay Expenses 5,868 4,699 2,168 2,591
Doug Murphy Salary 38,807 23,075 22,026 23,075
Doug Murphy Expenses 7,538 1,065 3,014 9,879
Gerald Murphy Salary 50,306 29,912 28,552 29,912
Gerald Murphy Expenses 8,578 - - -
Joe Westover Salary 15,667 9,315 8,892 9,315
Joe Westover Expenses 715 125 1,037 -
Karen Porter Salary 10,888 6,474 6,179 6,474
Karen Porter Expenses 1,693 6,000 - -
L.M. Pullen Salary 19,116 11,366 24,108 -
L.M. Pullen Expenses 1,777 4,515 5,780 3,854
Lee Adams Salary 25,872 15,383 14,684 15,231
Lee Adams Expenses 720 10,558 - 1,784
Ray Koza Salary 13,712 8,153 7,782 8,153
Ray Koza Expenses 1,616 475 5,990 857
Richard McCombs Salary 26,590 24,794 7,187 -
Richard McCombs Expenses 14,368 2,653 - -
Urbain Tran Salary 12,677 7,538 7,195 7,538
Urbain Tran Expenses 7,380 1,645 8,056 13,779
411 NSHP LP Office rent 32,845 32,645 36,161 32,645
TOTAL INSIDERS (MOR-1) $390,048 $292,953 $256,185 $220,237
PROFESSIONALS COMP.
NAME TYPE Sept. 30 Oct. 31 Nov. 30 Dec. 31
Jordan, Hyden, Womble & Culbreth $37,520 $37,480 - -
Policano & Manzo, L.L.C. 60,093 136,660 64,846 32,338
Jay Alix and Associates - - - 499,913
TOTAL PROFESSIONALS (MOR-1) $97,612 $174,139 $64,846 $532,251
MOR-9 Footnotes follow
<PAGE>
CASE NAME: AMERICAN RICE, INC.
CASE NUMBER: 98-21254-C-11 (RSS)
FOOTNOTES TO MOR SCHEDULES
MOR-1
1. Excepting large transactions which are recorded in the calendar
month in which they occur, the Company follows the practice of
cutting off transactions on a 4-4-5 week basis.
2. Period from August 12, 1998 through September, 1998.
MOR-2
1. Book value.
2. Includes 100% ownership of Rice Corp. of Haiti. However,
documentation of ownership is inconsistent and unclear.
3. ARI-Vinafood II.
4. Net of reserve for loss of $17,055.
MOR-3
1. Book value.
2. Reserves for losses on Early California Foods, Comet Ventures,
and ARI-Vinafood II.
MOR-7
1. Includes foreign currency translation gain or loss.
MOR-8
1. Canadian Imperial Bank of Canada.
2. Includes cutoff date differences between bank and financials.
See MOR-1 Note 1.
