<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):
November 12, 1999 (November 12, 1999)
DeVlieg-Bullard, Inc.
- --------------------------------------------------------------------------------
(Exact Name of Registrant as Specified in its Charter)
Delaware 0-18198 62-1270573
- ---------------------------- ------------ -------------------
(State or Other Jurisdiction (Commission (I.R.S. Employer
of Incorporation) File Number) Identification No.)
1900 Case Parkway South, Twinsburg, Ohio 44807
- ---------------------------------------------- --------------------
(Address of Principal Executive Offices) (Zip Code)
Registrant's telephone number, including area code: (330) 963-0699
Not Applicable
- --------------------------------------------------------------------------------
(Former Name or Former Address, if Changed Since Last Report)
<PAGE> 2
ITEM 5. OTHER EVENTS.
DeVlieg-Bullard, Inc. (the "Company") has filed monthly operating
reports for the following periods: (i) July 15, 1999 to July 31, 1999, (ii)
August 1, 1999 to August 31, 1999, and (iii) September 1, 1999 to September 30,
1999 (collectively, the "Operating Reports") with the United States Bankruptcy
Court for the Northern District of Ohio, copies of portions of which are
attached hereto as Exhibits 99.1, 99.2 and 99.3, in connection with its
voluntary petition for reorganization under Chapter 11 of title 11 of the United
States Bankruptcy Code in Case No. 99-52111.
The Company cautions investors or potential investors not to place
undue reliance upon the information contained therein. The Operating Reports
contain unaudited information, and each is in a format prescribed by the
applicable bankruptcy laws. There can be no assurance that, from the perspective
of an investor or potential investor in the Company's securities, the Operating
Reports are complete. The Operating Reports also contain information for periods
which may be shorter or otherwise different from those required in the Company's
reports pursuant to the Securities Exchange Act of 1934, as amended (the
"Exchange Act"). Such information may not be indicative of the Company's
financial condition or operating results for the periods reflected in the
Company's financial or operating results for the periods which would be
reflected in the Company's financial statements or in its reports pursuant to
the Exchange Act. Moreover, the Operating Reports and other communications from
the Company may include forward-looking statements subject to various
assumptions regarding the Company's operating performance that may not be
realized and subject to significant business, economic and competitive
uncertainties and contingencies, including those described in this report, many
of which are beyond the Company's control. Consequently, such matters should not
be regarded as a representation or warranty by the Company that such matters
will be realized or are indicative of the Company's financial condition or
operating results for future periods. Actual results for such periods may differ
materially from the information contained in the Operating Reports, and the
Company undertakes no obligations to update or revise such Operating Reports.
This Current Report on Form 8-K, and the exhibits filed herewith, may
include certain forward-looking statements. Actual results could differ
materially from those reflected by the forward-looking statements contained in
this document and a number of factors may affect future results, liquidity and
capital resources. These factors include the ability of the Company to obtain
adequate financing to fund ongoing operations and repay past due payables and
Bankruptcy Court confirmation of a plan of reorganization; the ability of the
Company to increase its liquidity through divestiture of certain non-core
assets; the ability of the Company to obtain sufficient parts from its vendors;
the ability of the Company to obtain trade credit from those vendors on
favorable terms; the fact that the Company derives a substantial portion of its
sales from cyclical industries, including the automotive, aerospace and housing
industries; the ability to introduce new products in a timely fashion; the pace
of technological changes affecting the products manufactured and services
provided by the Company; the Company's substantial debt service requirements,
much of which are based on variable rates; and the ability to continue to
minimize operating expenses.
2
<PAGE> 3
ITEM 7. FINANCIAL STATEMENTS, PRO FORMA FINANCIAL INFORMATION AND EXHIBITS.
99.1 Portions of Operating Report for the month ended July 31, 1999
99.2 Portions of Operating Report for the month ended August 31,
1999
99.3 Portions of Operating Report for the month ended September 30,
1999
3
<PAGE> 4
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.
DEVLIEG-BULLARD, INC.
Date: November 11, 1999 By: /s/ John Haggerty
------------------------------------
John Haggerty
Chief Executive Officer
<PAGE> 5
EXHIBIT INDEX
NO. EXHIBIT
--- -------
99.1 Portions of Operating Report for the month ended July 31, 1999
99.2 Portions of Operating Report for the month ended August 31,
1999
99.3 Portions of Operating Report for the month ended September 30,
1999
<PAGE> 1
EXHIBIT 99.1
TRANSMITTAL OF FINANCIAL REPORTS AND
CERTIFICATION OF COMPLIANCE WITH
UNITED STATES TRUSTEE OPERATING REQUIREMENTS FOR
THE PERIOD ENDED: JULY 15 - 31, 1999
IN RE: : CASE NO.: 99-52111
Chapter 11
: Judge: Marilyn Shea-Stonum
DeVlieg-Bullard, Inc.
Debtor :
:
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 postpetition taxes as described in Sections 1 and 14 of the
Operating Instructions and Reporting Requirements For Chapter 11 cases ARE/ARE
NOT current. (Explain on separate sheet if not true.)
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: 10-14-99 /s/ Scott Gerhartz
------------ ---------------------------------------
Debtor in Possession
Vice President - Finance 815-282-4100
---------------------------------------
Title Phone
<PAGE> 2
OPERATING STATEMENT (P&L) TOTAL
(ACCRUAL BASIS)
Debtor: DeVlieg Bullard, Inc. Case No: 99-52111
--------------------- --------
Month Ending: July 15 - July 31
-----------------
<TABLE>
<CAPTION>
Current Total
Month Since Filing
--------------- ---------------
<S> <C> <C>
Total Revenue / Sales $ 2,121,000.00 $ 2,121,000.00
Cost of Sales $ 1,616,000.00 $ 1,616,000.00
--------------- ---------------
Gross Profit $ 505,000.00 $ 505,000.00
=============== ===============
EXPENSES:
Officer Compensation $ 34,000.00 $ 34,000.00
Salary Expenses $ 436,000.00 $ 436,000.00
Employee Benefits & Pensions $ 112,000.00 $ 112,000.00
Payroll Taxes $ 40,000.00 $ 40,000.00
Other Taxes $ 3,000.00 $ 3,000.00
Rent & Lease Expense $ 94,000.00 $ 94,000.00
Interest Expense $ 2,000.00 $ 2,000.00
Insurance $ 2,000.00 $ 2,000.00
Automobile & Truck Expense $ 54,000.00 $ 54,000.00
Utilities $ 89,000.00 $ 89,000.00
Depreciation $ 54,000.00 $ 54,000.00
Travel and Entertainment $ 30,000.00 $ 30,000.00
Repairs and Maintenance $ 43,000.00 $ 43,000.00
Advertising $ 12,000.00 $ 12,000.00
Supplies, Office Expenses, etc $ 29,000.00 $ 29,000.00
Other Administrative $ 653,000.00 $ 653,000.00
--------------- ---------------
TOTAL EXPENSES: $ 1,687,000.00 $ 1,687,000.00
--------------- ---------------
NET OPERATING PROFIT / (LOSS) $ (1,182,000.00) $ (1,182,000.00)
=============== ===============
Add: Non-Operating Income:
Interest Income $ -- $ --
Other Income $ -- $ --
Add: Non-Operating Expenses:
Professional Fees $ (200,000.00) $ (200,000.00)
Other $ (7,000.00) $ (7,000.00)
--------------- ---------------
NET INCOME / (LOSS) $ (1,389,000.00) $ (1,389,000.00)
=============== ===============
</TABLE>
Date:
------------ -----------------------------------------------
<PAGE> 3
BALANCE SHEET - CONSOLIDATED
Debtor: DeVlieg Bullard, Inc. Case No: 99-52111
--------------------- --------
Month Ending: July 15 - July 31
-----------------
<TABLE>
<CAPTION>
CURRENT MONTH AT FILING
--------------- ---------------
<S> <C> <C>
ASSETS:
Cash $ 192,000.00 $ 330,000.00
Inventory $ 36,544,000.00 $ 36,580,500.00
Accounts Receivable $ 11,572,000.00 $ 11,660,000.00
Insider Receivables $ 7,000.00 $ 7,000.00
Land and Buildings $ 3,061,000.00 $ 3,061,000.00
Furniture, Fixtures, & Equip $ 20,946,000.00 $ 20,946,000.00
Accumulated Depreciation $(16,956,000.00) $(16,811,000.00)
Other: Prepaid $ 2,055,000.00 $ 1,964,000.00
Other: Intangibles $ 44,367,000.00 $ 44,431,500.00
--------------- ---------------
TOTAL ASSETS: $101,788,000.00 $102,169,000.00
=============== ===============
LIABILITIES:
POSTPETITION LIABILITIES
Accounts Payable $ 452,000.00 $ --
Wages and Salaries $ 53,000.00 $ --
Taxes Payable $ -- $ --
Other: $ 349,000.00 $ --
--------------- ---------------
TOTAL POSTPETITION LIABILITIES $ 854,000.00 $ --
=============== ===============
SECURED LIABILITIES:
Subject to Postpetition
Collateral or Financing Order $ 26,395,000.00 $ 26,678,000.00
All Other Secured Liab $ 1,047,000.00 $ 1,047,000.00
--------------- ---------------
TOTAL SECURED LIABILITIES: $ 27,442,000.00 $ 27,725,000.00
=============== ===============
PREPETITION LIABILITIES
Taxes and other Priority Liab. $ 2,247,000.00 $ 2,247,000.00
Unsecured Liabilities $ 68,608,000.00 $ 68,171,000.00
Other: Insider Payable $ 3,317,000.00 $ 3,317,000.00
--------------- ---------------
TOTAL PREPETITION LIAB. $ 74,172,000.00 $ 73,735,000.00
=============== ===============
EQUITY:
Owners Capital $ 16,765,000.00 $ 16,765,000.00
Retained Earnings-Pre Pet. $(16,056,000.00) $(16,056,000.00)
Retained Earnings-Post Pet. $ (1,389,000.00) $ --
--------------- ---------------
TOTAL EQUITY: $ (680,000.00) $ 709,000.00
=============== ===============
TOTAL LIABILITIES
AND EQUITY: $101,788,000.00 $102,169,000.00
=============== ===============
</TABLE>
Date:
------------ -----------------------------------------------
<PAGE> 4
SUMMARY OF OPERATIONS - CONSOLIDATED
Debtor: DeVlieg Bullard, Inc. Case No: 99-52111
--------------------- --------
Month Ending: July 15 - July 31
-----------------
SCHEDULE OF POSTPETITION TAXES PAYABLE
<TABLE>
<CAPTION>
BEGINNING ACCRUED/ PAYMENTS/ ENDING
BALANCE WITHHELD DEPOSITS BALANCE
----------- ----------- ----------- -----------
<S> <C> <C> <C> <C>
INCOME TAXES WITHHELD:
Federal: $ -- $ 57,757 $ 57,757 $ --
State: $ -- $ 13,855 $ 13,855 $ --
Local: $ -- $ 2,790 $ 2,790 $ --
FICA WITHHELD: $ -- $ 30,461 $ 30,461 $ --
EMPLOYERS FICA: $ -- $ 30,461 $ 30,461 $ --
UNEMPLOYMENT TAX:
Federal: $ -- $ -- $ -- $ --
State: $ -- $ -- $ -- $ --
SALES, USE & EXCISE TAXES: $ -- $ -- $ -- $ --
PROPERTY TAXES: $ -- $ 38,174 $ -- $ 38,174
WORKERS' COMPENSATION $ -- $ 100,987 $ -- $ 100,987
OTHER: $ -- $ 620 $ 620 $ --
----------- ----------- ----------- -----------
TOTALS: $ -- $ 275,106 $ 135,944 $ 139,161
=========== =========== =========== ===========
</TABLE>
AGING OF ACCOUNTS RECEIVABLE
AND POSTPETITION ACCOUNTS PAYABLE
<TABLE>
<CAPTION>
Age in Days 0-30 OVER 30 OVER 60
<S> <C> <C> <C>
Post Petition Accounts Payable $ 452,000 $ -- $ --
Accounts Receivable $3,564,000 $2,403,000 $5,605,000
</TABLE>
For all postpetition accounts payable over 30 days old, please attach a
sheet listing each such account, to whom the account is owed, the date the
account was opened, and the reason for non-payment of the account.
Date:
------------ -----------------------------------------------
<PAGE> 5
MONTHLY CASH STATEMENT - CONSOLIDATED
Debtor: DeVlieg Bullard, Inc. Case No: 99-52111
--------------------- --------
Month Ending: July 15 - July 31
-----------------
Cash Activity Analysis (Cash Basis Only)
<TABLE>
<CAPTION>
General Payroll Tax Cash Collection
Account Account Account Account
---------- --------- --------- ----------
<S> <C> <C> <C> <C>
A. Beginning Balance $ -- $ (20,850) $ -- $ 139,443
B. Receipts $1,533,883 $ 821,923 $ -- $2,650,873
C. Balance Available $1,533,883 $ 801,073 $ -- $2,790,316
D. Less Disbursements $1,229,142 $ 610,016 $ -- $2,331,000
---------- --------- --------- ----------
E. Ending Balance $ 304,741 $ 191,058 $ -- $ 459,316
========== ========= ========= ==========
</TABLE>
(PLEASE ATTACH COPIES OF MOST RECENT RECONCILED BANK STATEMENTS FROM EACH
ACCOUNT)
GENERAL ACCOUNT:
1. Depository Name & Location
-------------------------------------------
2. Account Number
-------------------------------------------
see attached schedule: DeVlieg Other Accounts
-------------------------------------------
PAYROLL ACCOUNT:
1. Depository Name & Location
-------------------------------------------
2. Account Number
-------------------------------------------
see attached schedule: DeVlieg Other Accounts
-------------------------------------------
TAX ACCOUNT:
1. Depository Name & Location
-------------------------------------------
2. Account Number
-------------------------------------------
Other Monies on Hand (Specify type and location) ( I.e. CD's, petty cash)
-------------------------------------------------------------------------
-------------------------------------------------------------------------
see attached schedule: DeVlieg Other Accounts
Date:
------------ -----------------------------------------------
<PAGE> 6
DEVLIEG OTHER ACCOUNTS
Debtor: DeVlieg Bullard, Inc. Case No: 99-52111
--------------------- --------
Month Ending: July 15 - July 31
-----------------
SERVICES GROUP
GENERAL ACCOUNT:
1. Depository Name & Location National City Bank
---------------------------------------
2. Account Number 628513872
---------------------------------------
PAYROLL ACCOUNT:
1. Depository Name & Location Bank One
---------------------------------------
2. Account Number 615841137 (Closed August 31, 1999)
---------------------------------------
Other Monies on Hand (Specify type and location) ( I.e. CD's, petty cash)
Account Previously used for Machine Tool P/R: $ 5,227.64 balance -
Bank One Acct. #: 615841145
---------------------------------------------------------------------
---------------------------------------------------------------------
POWERMATIC
GENERAL ACCOUNT:
1. Depository Name & Location First National Bank - McMinnville, TN
---------------------------------------
2. Account Number 004-452-4
---------------------------------------
PAYROLL ACCOUNT:
1. Depository Name & Location Union Planters - McMinnville, TN
(Closed out as of 8/31/99)
---------------------------------------
2. Account Number 0000 913855
---------------------------------------
Other Monies on Hand (Specify type and location) ( I.e. CDs, petty cash)
Local Account: $5000.00 balance/Petty Cash Account: $2000.00 balance
---------------------------------------------------------------------
---------------------------------------------------------------------
TOOLING SYSTEMS DIVISION
GENERAL ACCOUNT:
1. Depository Name & Location Citizens Bank Frankenmuth, MI
---------------------------------------
2. Account Number 4511613327
---------------------------------------
Other Monies on Hand (Specify type and location) ( I.e. CD's, petty cash)
Petty Cash Frankenmuth: $750.00/Gladwin Stock Room: $1000/Gladwin
Manufacturing:
---------------------------------------------------------------------
$450/Actual amounts were under $500 combined
---------------------------------------------------------------------
<PAGE> 1
EXHIBIT 99.2
TRANSMITTAL OF FINANCIAL REPORTS AND
CERTIFICATION OF COMPLIANCE WITH
UNITED STATES TRUSTEE OPERATING REQUIREMENTS FOR
THE PERIOD ENDED: AUGUST 31, 1999
IN RE: : CASE NO.: 99-52111
Chapter 11
: Judge: Marilyn Shea-Stonum
DeVlieg-Bullard, Inc.
Debtor :
:
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 postpetition taxes as described in Sections 1 and 14 of the
Operating Instructions and Reporting Requirements For Chapter 11 cases ARE/ARE
NOT current. (Explain on separate sheet if not true.)
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: 10-20-99 /s/ Scott Gerhartz
------------ ---------------------------------------
Debtor in Possession
Vice President - Finance 815-282-4100
---------------------------------------
Title Phone
<PAGE> 2
OPERATING STATEMENT (P&L) TOTAL REVISED
(ACCRUAL BASIS)
Debtor: DeVlieg Bullard, Inc. Case No: 99-52111
--------------------- --------
Month Ending: 31-Aug-99
----------
<TABLE>
<CAPTION>
Current Total
Month Since Filing 7/31/99
----------- ------------ -----------
<S> <C> <C> <C>
Total Revenue / Sales $ 5,132,303 $ 7,254,303 $ 2,122,000
Cost of Sales $ 3,027,663 $ 4,581,163 $ 1,553,500
Amortization $ 125,000 $ 187,500 $ 62,500
----------- ----------- -----------
Gross Profit $ 1,979,640 $ 2,485,640 $ 506,000
=========== =========== ===========
EXPENSES:
Officer Compensation $ 59,000 $ 93,000 $ 34,000
Salary Expenses $ 752,206 $ 1,188,206 $ 436,000
Employee Benefits & Pensions $ 131,103 $ 243,103 $ 112,000
Payroll Taxes $ 85,893 $ 125,893 $ 40,000
Other Taxes $ 8,000 $ 11,000 $ 3,000
Rent & Lease Expense $ 137,475 $ 231,475 $ 94,000
Interest Expense $ 319,000 $ 321,000 $ 2,000
Insurance $ 10,000 $ 12,000 $ 2,000
Automobile & Truck Expense $ 2,813 $ 56,813 $ 54,000
Utilities $ 135,130 $ 224,130 $ 89,000
Depreciation $ 135,083 $ 190,083 $ 55,000
Travel and Entertainment $ 98,253 $ 128,253 $ 30,000
Repairs and Maintenance $ 16,200 $ 59,200 $ 43,000
Advertising $ 15,000 $ 27,000 $ 12,000
Supplies, Office Expenses, etc $ 92,890 $ 121,890 $ 29,000
Other Administrative $ 187,931 $ 840,931 $ 653,000
----------- ----------- -----------
TOTAL EXPENSES: $ 2,185,977 $ 3,873,977 $ 1,688,000
----------- ----------- -----------
NET OPERATING PROFIT / (LOSS) $ (206,337) $(1,388,337) $(1,182,000)
=========== =========== ===========
Add: Non-Operating Income:
Interest Income $ -- $ -- $ --
Other Income $ 1,000 $ 1,000 $ --
Add: Non-Operating Expenses:
Professional Fees $ (278,000) $ (478,000) $ (200,000)
Other $ (35,000) $ (42,000) $ (7,000)
----------- ----------- -----------
NET INCOME / (LOSS) $ (518,337) $(1,907,337) $(1,389,000)
=========== =========== ===========
</TABLE>
Date:
------------ -----------------------------------------------
<PAGE> 3
BALANCE SHEET - CONSOLIDATED REVISED
Debtor: DeVlieg Bullard, Inc. Case No: 99-52111
--------------------- --------
Month Ending: 31-Aug-99
---------
<TABLE>
<CAPTION>
ASSETS: CURRENT MONTH PRIOR MONTH AT FILING
------------- ------------- -------------
<S> <C> <C> <C>
Cash $ 65,000 $ 192,000 $ 330,000
Inventory $ 34,887,000 $ 36,544,000 $ 36,580,500
Accounts Receivable $ 13,039,596 $ 11,572,000 $ 11,660,000
Insider Receivables $ 7,000 $ 7,000 $ 7,000
Land and Buildings $ 3,061,000 $ 3,061,000 $ 3,061,000
Furniture, Fixtures, & Equip $ 20,946,000 $ 20,946,000 $ 20,946,000
Accumulated Depreciation $ (17,032,674) $ (16,956,000) $ (16,811,000)
Other: Prepaid $ 2,889,000 $ 2,055,000 $ 1,964,000
Other: Intangibles $ 44,089,000 $ 44,367,000 $ 44,431,500
------------- ------------- -------------
TOTAL ASSETS: $ 101,950,922 $ 101,788,000 $ 102,169,000
============= ============= =============
LIABILITIES:
POSTPETITION LIABILITIES
Accounts Payable $ 455,000 $ 452,000 $ --
Wages and Salaries $ 355,000 $ 53,000 $ --
Taxes Payable $ 55,000 $ -- $ --
Other: $ 397,775 $ 349,000 $ --
------------- ------------- -------------
TOTAL POSTPETITION LIABILITIES $ 1,262,775 $ 854,000 $ --
============= ============= =============
SECURED LIABILITIES:
Subject to Postpetition
Collateral or Financing Order $ 27,039,484 $ 26,395,000 $ 26,678,000
All Other Secured Liab $ 1,047,000 $ 1,047,000 $ 1,047,000
------------- ------------- -------------
TOTAL SECURED LIABILITIES: $ 28,086,484 $ 27,442,000 $ 27,725,000
============= ============= =============
PREPETITION LIABILITIES
Taxes and Other Priority Liab $ 2,093,000 $ 2,247,000 $ 2,247,000
Unsecured Liabilities $ 68,620,000 $ 68,608,000 $ 68,171,000
Other: Insider Payable $ 3,317,000 $ 3,317,000 $ 3,317,000
------------- ------------- -------------
TOTAL PREPETITION LIAB $ 74,030,000 $ 74,172,000 $ 73,735,000
============= ============= =============
EQUITY:
Owners Capital $ 16,765,000 $ 16,765,000 $ 16,765,000
Retained Earnings-Pre Pet $ (16,286,000) (1) $ (16,056,000) $ (16,056,000)
Retained Earnings-Post Pet $ (1,907,337) $ (1,389,000) $ --
------------- ------------- -------------
TOTAL EQUITY: $ (1,428,337) $ (680,000) $ 709,000
============= ============= =============
TOTAL LIABILITIES
AND EQUITY: $ 101,950,922 $ 101,788,000 $ 102,169,000
============= ============= =============
</TABLE>
(1) Prepetition retained earnings were charged $ 230,000 for prepetition
accounts payable located subsequent to filing.
Date:
------------ -----------------------------------------------
<PAGE> 4
SUMMARY OF OPERATIONS - CONSOLIDATED
Debtor: DeVlieg Bullard, Inc. Case No: 99-52111
--------------------- --------
Month Ending: 31-Aug-99
---------
SCHEDULE OF POSTPETITION TAXES PAYABLE
<TABLE>
<CAPTION>
BEGINNING ACCRUED/ PAYMENTS/ ENDING
BALANCE WITHHELD DEPOSITS BALANCE
------- -------- -------- ---------
<S> <C> <C> <C> <C>
INCOME TAXES WITHHELD:
Federal: $ -- $158,000 $158,000 $ --
State: $ -- $ 31,000 $ 31,000 $ --
Local: $ -- $ 5,000 $ 5,000 $ --
FICA WITHHELD: $ -- $ 86,000 $ 86,000 $ --
EMPLOYERS FICA: $ -- $ 86,000 $ 86,000 $ --
UNEMPLOYMENT TAX:
Federal: $ -- $ -- $ -- $ --
State: $ -- $ -- $ -- $ --
SALES, USE & EXCISE TAXES: $ 1,000 $ -- $ 5,000 $ (4,000)
PROPERTY TAXES: $44,000 $ 4,000 $ -- $ 48,000
WORKERS' COMPENSATION $51,000 $138,000 $ -- $ 189,000
OTHER: $ -- $ 1,000 $ 1,000 $ --
------- -------- -------- ---------
TOTALS: $96,000 $509,000 $372,000 $ 233,000
======= ======== ======== =========
</TABLE>
AGING OF ACCOUNTS RECEIVABLE
AND POSTPETITION ACCOUNTS PAYABLE
<TABLE>
<CAPTION>
Age in Days 0-30 OVER 30 OVER 60
<S> <C> <C> <C>
Post Petition Accounts Payable $ 388,000 $ 67,000 $ --
Accounts Receivable $7,957,000 $2,104,000 $3,082,000
</TABLE>
For all postpetition accounts payable over 30 days old, please attach a sheet
listing each such account, to whom the account is owed, the date the account was
opened, and the reason for non-payment of the account.
Date:
------------ -----------------------------------------------
<PAGE> 5
MONTHLY CASH STATEMENT - CONSOLIDATED
Debtor: DeVlieg Bullard, Inc. Case No: 99-52111
--------------------- --------
Month Ending: 31-Aug-99
---------
Cash Activity Analysis (Cash Basis Only)
<TABLE>
<CAPTION>
General Payroll Tax Cash Collection
Account Account Account Account
---------- --------- --------- ----------
<S> <C> <C> <C> <C>
A. Beginning Balance $ 501,000 $ 191,058 $ -- $ --
B. Receipts $2,862,000 $1,315,382 $ -- $ --
C. Balance Available $3,363,000 $1,506,440 $ -- $ --
D. Less Disbursements $3,296,000 $1,291,978 $ -- $ --
---------- ---------- ---------- --------
E. Ending Balance $ 67,000 $ 214,462 $ -- $ --
========== ========== ========== ========
</TABLE>
(PLEASE ATTACH COPIES OF MOST RECENT RECONCILED BANK STATEMENTS FROM EACH
ACCOUNT)
GENERAL ACCOUNT:
1. Depository Name & Location
--------------------------------------------
2. Account Number
--------------------------------------------
see attached schedule: DeVlieg Other Accounts
--------------------------------------------
PAYROLL ACCOUNT:
1. Depository Name & Location
-------------------------------------------
2. Account Number
-------------------------------------------
see attached schedule: DeVlieg Other Accounts
-------------------------------------------
TAX ACCOUNT:
1. Depository Name & Location
-------------------------------------------
2. Account Number
-------------------------------------------
Other Monies on Hand (Specify type and location) ( I.e. CD's, petty cash)
-------------------------------------------------------------------------
-------------------------------------------------------------------------
see attached schedule: DeVlieg Other Accounts
Date:
------------ -----------------------------------------------
<PAGE> 6
DEVLIEG OTHER ACCOUNTS
Debtor: DeVlieg Bullard, Inc. Case No: 99-52111
--------------------- --------
Month Ending: 31-Aug-99
---------
SERVICES GROUP
GENERAL ACCOUNT:
1. Depository Name & Location National City Bank
---------------------------------------
2. Account Number 628513872 & 628513933
---------------------------------------
PAYROLL ACCOUNT:
1. Depository Name & Location Bank One
---------------------------------------
2. Account Number 615841137 (Closed August 31, 1999)
---------------------------------------
Other Monies on Hand (Specify type and location) ( I.e. CD's, petty cash)
---------------------------------------------------------------------
---------------------------------------------------------------------
POWERMATIC
GENERAL ACCOUNT:
1. Depository Name & Location First National Bank - McMinnville, TN
---------------------------------------
2. Account Number 004-452-4
---------------------------------------
PAYROLL ACCOUNT:
1. Depository Name & Location Union Planters - McMinnville, TN
(Closed out as of 8/31/99)
---------------------------------------
2. Account Number 0000 913855
---------------------------------------
Other Monies on Hand (Specify type and location) ( I.e. CDs, petty cash)
---------------------------------------------------------------------
---------------------------------------------------------------------
TOOLING SYSTEMS DIVISION
GENERAL ACCOUNT:
1. Depository Name & Location Citizens Bank Frankenmuth, MI
---------------------------------------
2. Account Number 4511613327
---------------------------------------
PAYROLL ACCOUNT:
1. Depository Name & Location National City Bank - royal Oak, MI
---------------------------------------
2. Account Number 628520562
---------------------------------------
Other Monies on Hand (Specify type and location) ( I.e. CD's, petty cash)
National City Bank Acct. #: 628520925 - Balance: $.01
---------------------------------------------------------------------
---------------------------------------------------------------------
<PAGE> 7
DEVLIEG - NOTES TO MONTHLY OPERATING REPORTS
Debtor: DeVlieg Bullard, Inc. Case No: 99-52111
--------------------- --------
Month Ending: 31-Aug-99
----------
NOTES TO MONTHLY OPERATING REPORTS
<PAGE> 1
EXHIBIT 99.3
TRANSMITTAL OF FINANCIAL REPORTS AND
CERTIFICATION OF COMPLIANCE WITH
UNITED STATES TRUSTEE OPERATING REQUIREMENTS FOR
THE PERIOD ENDED: SEPTEMBER 30, 1999
IN RE: : CASE NO.: 99-52111
Chapter 11
: Judge: Marilyn Shea-Stonum
DeVlieg-Bullard, Inc.
Debtor :
:
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 postpetition taxes as described in Sections 1 and 14 of the
Operating Instructions and Reporting Requirements For Chapter 11 cases ARE/ARE
NOT current. (Explain on separate sheet if not true.
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: 11-2-99 /s/ Scott Gerhartz
------------ ---------------------------------------
Debtor in Possession
Vice President 815-282-4100
---------------------------------------
Title Phone
<PAGE> 2
OPERATING STATEMENT (P&L) TOTAL
(ACCRUAL BASIS)
Debtor: DeVlieg Bullard, Inc. Case No: 99-52111
--------------------- --------
Month Ending: 30-Sep-99
---------
<TABLE>
<CAPTION>
Current Total
Month Since Filing 8/31/99
----------- ------------ -----------
<S> <C> <C> <C>
Total Revenue / Sales $ 5,105,011 $ 12,359,314 $ 5,132,303
Cost of Sales $ 3,122,015 $ 7,765,678 $ 3,027,663
Amortization $ 125,000 $ 250,000 $ 125,000
----------- ------------ -----------
Gross Profit $ 1,857,996 $ 4,343,636 $ 1,979,640
=========== ============ ===========
EXPENSES:
Officer Compensation $ 51,174 $ 144,174 $ 59,000
Salary Expenses $ 789,255 $ 1,977,461 $ 752,206
Employee Benefits & Pensions $ 132,750 $ 375,853 $ 131,103
Payroll Taxes $ 97,394 $ 223,287 $ 85,893
Other Taxes $ 21,313 $ 32,313 $ 8,000
Rent & Lease Expense $ 111,800 $ 343,275 $ 137,475
Interest Expense $ 309,000 $ 630,000 $ 319,000
Insurance $ 10,248 $ 22,248 $ 10,000
Automobile & Truck Expense $ 24,883 $ 81,696 $ 2,813
Utilities $ 82,645 $ 306,775 $ 135,130
Depreciation $ 112,083 $ 302,166 $ 135,083
Travel and Entertainment $ 103,047 $ 231,300 $ 98,253
Repairs and Maintenance $ 38,410 $ 97,610 $ 16,200
Advertising $ 47,000 $ 74,000 $ 15,000
Supplies, Office Expenses, etc $ 101,344 $ 223,234 $ 92,890
Other Administrative $ 300,440 $ 1,141,371 $ 187,931
----------- ------------ -----------
TOTAL EXPENSES: $ 2,332,786 $ 6,206,763 $ 2,185,977
----------- ------------ -----------
NET OPERATING PROFIT / (LOSS) $ (474,790) $ (1,863,127) $ (206,337)
=========== ============ ===========
Add: Non-Operating Income:
Interest Income $ -- $ -- $ --
Other Income $ -- $ 1,000 $ 1,000
Add: Non-Operating Expenses:
Professional Fees $ (160,000) $ (638,000) $ (278,000)
Other $ (36,250) $ (78,250) $ (35,000)
----------- ------------ -----------
NET INCOME / (LOSS) $ (671,040) $ (2,578,377) $ (518,337)
=========== ============ ===========
</TABLE>
Date:
------------ -----------------------------------------------
<PAGE> 3
BALANCE SHEET - CONSOLIDATED
Debtor: DeVlieg Bullard, Inc. Case No: 99-52111
--------------------- --------
Month Ending: 30-Sep-99
---------
<TABLE>
<CAPTION>
CURRENT MONTH PRIOR MONTH AT FILING
------------- ------------- -------------
<S> <C> <C> <C>
ASSETS:
Cash $ 183,559 $ 65,000 $ 330,000
Inventory $ 34,838,646 $ 34,887,000 $ 36,580,500
Accounts Receivable $ 13,378,013 $ 13,143,000 $ 11,660,000
Insider Receivables $ 7,000 $ 7,000 $ 7,000
Land and Buildings $ 3,061,480 $ 3,061,000 $ 3,061,000
Furniture, Fixtures, & Equip $ 20,945,905 $ 20,946,000 $ 20,946,000
Accumulated Depreciation $ (17,107,990) $ (17,014,000) $ (16,811,000)
Other: Prepaid $ 2,424,804 $ 2,889,000 $ 1,964,000
Other: Intangibles $ 44,043,593 $ 44,089,000 $ 44,431,500
------------- ------------- -------------
TOTAL ASSETS: $ 101,775,010 $ 102,073,000 $ 102,169,000
============= ============= =============
LIABILITIES:
POSTPETITION LIABILITIES
Accounts Payable $ 641,000 $ 455,000 $ --
Wages and Salaries $ 355,000 $ 355,000 $ --
Taxes Payable $ 6,000 $ 55,000 $ --
Other Accrued $ 505,767 $ 636,000 $ --
------------- ------------- -------------
TOTAL POSTPETITION LIABILITIES $ 1,507,767 $ 1,501,000 $ --
============= ============= =============
SECURED LIABILITIES:
Subject to Postpetition
Collateral or Financing Order $ 27,168,620 $ 26,748,000 $ 26,678,000
All Other Secured Liab $ 1,047,000 $ 1,047,000 $ 1,047,000
------------- ------------- -------------
TOTAL SECURED LIABILITIES: $ 28,215,620 $ 27,795,000 $ 27,725,000
============= ============= =============
PREPETITION LIABILITIES
Taxes and Other Priority Liab $ 2,073,000 $ 2,093,000 $ 2,247,000
Unsecured Liabilities $ 68,761,000 $ 68,620,000 $ 68,171,000
Other: Insider Payable $ 3,317,000 $ 3,317,000 $ 3,317,000
------------- ------------- -------------
TOTAL PREPETITION LIAB. $ 74,151,000 $ 74,030,000 $ 73,735,000
============= ============= =============
EQUITY:
Owners Capital $ 16,765,000 $ 16,765,000 $ 16,765,000
Retained Earnings-Pre Pet. $ (16,286,000) $ (16,286,000) $ (16,056,000)
Retained Earnings-Post Pet. $ (2,578,377) $ (1,907,337) $ --
------------- ------------- -------------
TOTAL EQUITY: $ (2,099,377) $ (1,428,337) $ 709,000
============= ============= =============
TOTAL LIABILITIES
AND EQUITY: $ 101,775,010 $ 101,897,663 $ 102,169,000
============= ============= =============
</TABLE>
Date:
------------ -----------------------------------------------
<PAGE> 4
SUMMARY OF OPERATIONS - CONSOLIDATED
Debtor: DeVlieg Bullard, Inc. Case No: 99-52111
--------------------- --------
Month Ending: 30-Sep-99
---------
SCHEDULE OF POSTPETITION TAXES PAYABLE
<TABLE>
<CAPTION>
BEGINNING ACCRUED/ PAYMENTS/ ENDING
BALANCE WITHHELD DEPOSITS BALANCE
-------- -------- -------- --------
<S> <C> <C> <C> <C>
INCOME TAXES WITHHELD:
Federal: $ -- $189,000 $189,000 $ --
State: $ -- $ 43,000 $ 43,000 $ --
Local: $ -- $ 6,000 $ 6,000 $ --
FICA WITHHELD: $ -- $107,000 $107,000 $ --
EMPLOYERS FICA: $ -- $107,000 $107,000 $ --
UNEMPLOYMENT TAX:
Federal: $ 4,000 $ -- $ -- $ 4,000
State: $(63,000) $ 1,000 $ 1,000 $(63,000)
SALES, USE & EXCISE TAXES: $ -- $ -- $ 2,000 $ (2,000)
PROPERTY TAXES: $ 49,000 $ 4,000 $ -- $ 53,000
WORKERS' COMPENSATION $ -- $ 32,000 $ -- $ 32,000
OTHER: $ -- $ -- $ -- $ --
-------- -------- -------- --------
TOTALS: $(10,000) $489,000 $455,000 $ 24,000
======== ======== ======== ========
</TABLE>
AGING OF ACCOUNTS RECEIVABLE
AND POSTPETITION ACCOUNTS PAYABLE
<TABLE>
<CAPTION>
Age in Days 0-30 OVER 30 OVER 60
<S> <C> <C> <C>
Post Petition Accounts Payable $ 560,298 $ 80,702 $ --
Accounts Receivable $9,960,000 $2,323,000 $1,087,000
</TABLE>
For all postpetition accounts payable over 30 days old, please attach a sheet
listing each such account, to whom the account is owed, the date the account was
opened, and the reason for non-payment of the account.
Date:
------------ -----------------------------------------------
<PAGE> 5
MONTHLY CASH STATEMENT - CONSOLIDATED
Debtor: DeVlieg Bullard, Inc. Case No: 99-52111
--------------------- --------
Month Ending: 30-Sep-99
---------
Cash Activity Analysis (Cash Basis Only)
<TABLE>
<CAPTION>
General Payroll Tax Cash Collection
Account Account Account Account
---------- ---------- ---------- --------
<S> <C> <C> <C> <C>
A. Beginning Balance $ 317,000 $ 214,000 $ -- $ --
B. Receipts $2,681,000 $1,035,000 $ -- $ --
C. Balance Available $2,998,000 $1,249,000 $ -- $ --
D. Less Disbursements $2,815,145 $ 993,000 $ -- $ --
---------- ---------- ---------- --------
E. Ending Balance $ 182,855 $ 256,000 $ -- $ --
========== ========== ========== ========
</TABLE>
(PLEASE ATTACH COPIES OF MOST RECENT RECONCILED BANK STATEMENTS FROM EACH
ACCOUNT)
GENERAL ACCOUNT:
1. Depository Name & Location
-------------------------------------------
2. Account Number
-------------------------------------------
see attached schedule: DeVlieg Other Accounts
-------------------------------------------
PAYROLL ACCOUNT:
1. Depository Name & Location
-------------------------------------------
2. Account Number
-------------------------------------------
see attached schedule: DeVlieg Other Accounts
-------------------------------------------
TAX ACCOUNT:
1. Depository Name & Location
-------------------------------------------
2. Account Number
-------------------------------------------
Other Monies on Hand (Specify type and location) ( I.e. CD's, petty cash)
-------------------------------------------------------------------------
-------------------------------------------------------------------------
see attached schedule: DeVlieg Other Accounts
Date:
------------ -----------------------------------------------
<PAGE> 6
DEVLIEG OTHER ACCOUNTS
Debtor: DeVlieg Bullard, Inc. Case No: 99-52111
--------------------- --------
Month Ending: 30-Sep-99
---------
SERVICES GROUP
GENERAL ACCOUNT:
1. Depository Name & Location National City Bank
---------------------------------------
2. Account Number 628513872 & 628513933
---------------------------------------
PAYROLL ACCOUNT:
1. Depository Name & Location Bank One
---------------------------------------
2. Account Number 615841137 (Closed August 31, 1999)
---------------------------------------
Other Monies on Hand (Specify type and location) ( I.e. CD's, petty cash)
---------------------------------------------------------------------
---------------------------------------------------------------------
POWERMATIC
GENERAL ACCOUNT:
1. Depository Name & Location First National Bank - McMinnville, TN
---------------------------------------
2. Account Number 004-452-4
---------------------------------------
PAYROLL ACCOUNT:
1. Depository Name & Location Union Planters - McMinnville, TN
(Closed out as of 8/31/99)
---------------------------------------
2. Account Number 0000 913855
---------------------------------------
Other Monies on Hand (Specify type and location) ( I.e. CDs, petty cash)
---------------------------------------------------------------------
---------------------------------------------------------------------
TOOLING SYSTEMS DIVISION
GENERAL ACCOUNT:
1. Depository Name & Location Citizens Bank Frankenmuth, MI
---------------------------------------
2. Account Number 4511613327
---------------------------------------
PAYROLL ACCOUNT:
1. Depository Name & Location National City Bank - Frankenmuth, MI
---------------------------------------
2. Account Number 628520925
---------------------------------------
Other Monies on Hand (Specify type and location) ( I.e. CD's, petty cash)
---------------------------------------------------------------------
---------------------------------------------------------------------
<PAGE> 7
DEVLIEG-NOTES TO MONTHLY OPERATING REPORTS
Debtor: DeVlieg Bullard, Inc. Case No: 99-52111
--------------------- --------
Month Ending: 30-Sep-99
---------
NOTES TO MONTHLY OPERATING REPORTS
(1) Due to the recent sale of the Powermatic Division, the Powermatic financial
information has not been closed for the month of September 1999. However,
certain financial information, pursuant to bank reporting requirements has been
provided and that information has been utilized to estimate the results provided
herein.
<TABLE>
<CAPTION>
ACCOUNTS DUE PAST 30 DAYS
VENDOR DATE AMOUNT REASON
<S> <C> <C> <C>
Argus Management 08/11 -08/19 $ 32,074.06 Waiting on Court Approval
AT&T 25-Aug $ 10,380.19 Timing of Invoice Receipt
Pure Tech Systems 8/10 - 8/16 $ 9,731.75 Receipt of Product Issue
HDH Group 13-Aug $ 28,516.00 Resolving COBRA employee issues
-------------
$ 80,702.00
=============
</TABLE>
