<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): December 6, 1999
(December 6, 1999)
DeVlieg-Bullard, Inc.
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(Exact Name of Registrant as Specified in its Charter)
<TABLE>
<S> <C> <C>
Delaware 0-18198 62-1270573
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(State or Other Jurisdiction of Incorporation) (Commission (I.R.S. Employer
File Number) Identification No.)
1900 Case Parkway South, Twinsburg, Ohio 44807
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(Address of Principal Executive Offices) (Zip Code)
</TABLE>
Registrant's telephone number, including area code: (330) 963-0699
Not Applicable
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(Former Name or Former Address, if Changed Since Last Report)
<PAGE> 2
ITEM 5. OTHER EVENTS.
DeVlieg-Bullard, Inc. (the "Company") has filed a monthly operating
report for the period October 1, 1999 to October 31, 1999 (the "Operating
Report") with the United States Bankruptcy Court for the Northern District of
Ohio, a copy of a portion of which is attached hereto as Exhibit 99.1, 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 Report
contains unaudited information and 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 Report
is complete. The Operating Report also contains 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 Report 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 Report, and the
Company undertakes no obligations to update or revise such Operating Report.
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 October
31, 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: December 6, 1999 By: /s/ John Haggerty
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John Haggerty
Chief Executive Officer
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EXHIBIT INDEX
<TABLE>
<CAPTION>
NO. EXHIBIT
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<S> <C>
99.1 Portions of Operating Report for the month ended October 31, 1999
</TABLE>
<PAGE> 1
EXHIBIT 99.1
TRANSMITTAL OF FINANCIAL REPORTS AND
CERTIFICATION OF COMPLIANCE WITH
UNITED STATES TRUSTEE OPERATING REQUIREMENTS FOR
THE PERIOD ENDED: OCTOBER 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: 11-22-99 /s/ W. James Lally
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Debtor in Possession
Vice President - Chief Financial Officer 800-248-8131
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Title Phone
<PAGE> 2
OPERATING STATEMENT (P&L) TOTAL
(ACCRUAL BASIS)
Debtor: DeVlieg Bullard, Inc. Case No: 99-52111
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Month Ending: 31-Oct-99
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<TABLE>
<CAPTION>
Current Total
Month Since Filing
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<S> <C> <C>
Total Revenue/Sales $ 4,789,867 $ 17,149,181
Cost of Sales $ 2,618,367 $ 10,384,045
Amortization $ 298,083 $ 548,083
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Gross Profit $ 1,873,417 $ 6,217,053
=========== ============
EXPENSES:
Officer Compensation $ 63,761 $ 207,935
Salary Expenses $ 864,840 $ 2,842,301
Employee Benefits & Pensions $ 183,281 $ 559,134
Payroll Taxes $ (6,800) $ 216,487
Other Taxes $ 2,473 $ 34,786
Rent & Lease Expense $ 99,654 $ 442,929
Interest Expense $ 488,868 $ 1,118,868
Insurance $ 2,124 $ 24,372
Automobile & Truck Expense $ 7,279 $ 88,975
Utilities $ 28,921 $ 335,696
Depreciation $ (58,937) $ 243,229
Travel and Entertainment $ 99,963 $ 331,263
Repairs and Maintenance $ 12,376 $ 109,986
Advertising $ 3,361 $ 77,361
Supplies, Office Expenses, etc. $ 59,629 $ 282,863
Other Administrative $ 416,481 $ 1,557,852
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TOTAL EXPENSES: $ 2,267,274 $ 8,474,037
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NET OPERATING PROFIT/(LOSS) $ (393,857) $ (2,256,984)
=========== ============
Add: Non-Operating Income:
Interest Income $ -- $ --
Other Income $ 3,174,827 $ 3,175,827
Add: Non-Operating Expenses:
Professional Fees $ (230,309) $ (708,309)
Other $ (31,307) $ (73,307)
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NET INCOME/(LOSS) $ 2,519,354 $ 137,227
=========== ============
</TABLE>
Date: 11/22/99 /s/ W. James Lally
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<PAGE> 3
BALANCE SHEET - CONSOLIDATED
Debtor: DeVlieg Bullard, Inc. Case No: 99-52111
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Month Ending: 31-Oct-99
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<TABLE>
<CAPTION>
ASSETS: CURRENT MONTH PRIOR MONTH AT FILING
- ------- ------------- ----------- ---------
<S> <C> <C> <C>
Cash $ 735,908 $ 183,559 $ 330,000
Inventory $ 31,552,736 $ 34,838,646 $ 36,580,500
Accounts Receivable $ 11,038,554 $ 13,378,013 $ 11,660,000
Insider Receivables $ 7,000 $ 7,000 $ 7,000
Land and Buildings $ 3,071,592 $ 3,061,480 $ 3,061,000
Furniture, Fixtures, & Equip. $ 14,047,236 $ 20,945,905 $ 20,946,000
Accumulated Depreciation $(11,348,618) $ (17,107,990) $ (16,811,000)
Other: Prepaid $ 2,261,221 $ 2,424,804 $ 1,964,000
Other: Intangibles $ 43,576,812 $ 44,043,593 $ 44,431,500
------------ ------------- -------------
TOTAL ASSETS: $ 94,942,441 $ 101,775,010 $ 102,169,000
============ ============= =============
LIABILITIES:
POSTPETITION LIABILITIES
Accounts Payable $ 1,077,220 $ 641,000 $ --
Wages and Salaries $ 320,469 $ 355,000 $ --
Taxes Payable $ 3,000 $ 6,000 $ --
Other Accrued $ 425,000 $ 505,767 $ --
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TOTAL POSTPETITION LIABILITIES $ 1,825,689 $ 1,507,767 $ --
============ ============= =============
SECURED LIABILITIES:
Subject to Postpetition
Collateral or Financing Order $ 24,028,354 $ 27,168,620 $ 26,678,000
All Other Secured Liab. $ 1,046,808 $ 1,047,000 $ 1,047,000
------------ ------------- -------------
TOTAL SECURED LIABILITIES: $ 25,075,162 $ 28,215,620 $ 27,725,000
============ ============= =============
PREPETITION LIABILITIES
Taxes and Other Priority Liab. $ 2,115,482 $ 2,073,000 $ 2,247,000
Unsecured Liabilities $ 68,407,475 $ 68,761,000 $ 68,171,000
Other: Insider Payable $ 3,317,000 $ 3,317,000 $ 3,317,000
------------ ------------- -------------
TOTAL PREPETITION LIAB. $ 73,839,957 $ 74,151,000 $ 73,735,000
============ ============= =============
EQUITY:
Owners Capital $ 10,619,813 $ 16,765,000 $ 16,765,000
Retained Earnings-Pre Pet. $(16,285,564) $ (16,286,000) $ (16,056,000)
Retained Earnings-Post Pet. $ (132,616) $ (2,578,377) $ --
------------ ------------- -------------
TOTAL EQUITY: $ (5,798,367) $ (2,099,377) $ 709,000
============ ============= =============
TOTAL LIABILITIES
------------ ------------- -------------
AND EQUITY: $ 94,942,441 $ 101,775,010 $ 102,169,000
============ ============= =============
</TABLE>
Date: 11/22/99 /s/ W. James Lally
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<PAGE> 4
SUMMARY OF OPERATIONS - CONSOLIDATED
Debtor: DeVlieg Bullard, Inc. Case No: 99-52111
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Month Ending: 31-Oct-99
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SCHEDULE OF POSTPETITION TAXES PAYABLE
<TABLE>
<CAPTION>
BEGINNING ACCRUED/ PAYMENTS/ ENDING
BALANCE WITHHELD DEPOSITS BALANCE
------- -------- -------- -------
<S> <C> <C> <C> <C>
INCOME TAXES WITHHELD:
Federal: $ -- $193,112 $193,112 $ --
State: $ -- $ 41,764 $ 41,764 $ --
Local: $ -- $ 6,047 $ 6,047 $ --
FICA WITHHELD: $ -- $105,296 $105,296 $ --
EMPLOYERS FICA: $ -- $105,296 $105,296 $ --
UNEMPLOYMENT TAX:
Federal: $ 4,000 $ 114 $ 114 $ 4,000
State: $(63,000) $ 1,053 $ 1,053 $(63,000)
SALES, USE & EXCISE TAXES: $ (2,000) $ -- $ 208 $ (2,208)
PROPERTY TAXES: $ 53,000 $ -- $ -- $ 53,000
WORKERS' COMPENSATION $ 32,000 $ -- $ -- $ 32,000
OTHER: $ -- $ -- $ -- $ --
-------- -------- -------- --------
TOTALS: $ 24,000 $452,682 $452,890 $ 23,792
======== ======== ======== ========
</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 $ 557,360 $ 425,700 $ 94,160
Accounts Receivable $ 5,146,850 $ 2,672,372 $ 3,279,824
</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: 11/22/99 /s/ W. James Lally
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<PAGE> 5
DEVLIEG - NOTES TO MONTHLY OPERATING REPORTS
Debtor: DeVlieg Bullard, Inc. Case No: 99-52111
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Month Ending: 31-Oct-99
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<TABLE>
<CAPTION>
ACCOUNTS DUE PAST 30 DAYS
VENDOR DATE AMOUNT REASON
------ ---- ------ ------
<S> <C> <C> <C>
Argus Management 08/11 -09/28 $ 15,617.88 Waiting on Court Approval
AT&T 9/11, 9/15 $ 11,935.45 Timing of Invoice Receipt
OCE 2-Sep $ 1,053.03 Timing of Invoice Receipt
DV Associates 1-Sep $ 25,000.00 Timing of Invoice Receipt
DeLage 7/22-9/22 $ 2,227.91 Timing of Invoice Receipt
James Rokakis 20-Sep $ 180,994.74 Timing of Invoice Receipt
GPU Energy 15-Sep $ 4,717.29 Timing of Invoice Receipt
Safety-Kleen 9/24, 9/30 $ 1,962.06 Timing of Invoice Receipt
C.E. Bradley 9/1-9/14 $ 15,000.00 Timing of Invoice Receipt
CT Corp. 1-Sep $ 12,480.00 Timing of Invoice Receipt
HDH 14-Sep $ 28,516.00 Resolving COBRA issues
Stanwich 9/1-9/22 $ 45,339.13 Timing of Invoice Receipt
American Financial 20-Jul $ 2,450.00 Timing of Invoice Receipt
Buckley-Owens 30-Jul $ 20,500.00 Timing of Invoice Receipt
Comp-Management 11-Aug $ 3,350.00 Timing of Invoice Receipt
Sandusky Cty Treasurer 31-Aug $ 2,710.19 Timing of Invoice Receipt
Tax Collector 18-Aug $ 1,972.82 Timing of Invoice Receipt
Misc. <$1,000.00 $ 9,451.63 Timing of Invoice Receipt
------------
$ 385,278.13
============
</TABLE>
<PAGE> 6
MONTHLY CASH STATEMENT - CONSOLIDATED
Debtor: DeVlieg Bullard, Inc. Case No: 99-52111
------------------------------ ------------
Month Ending: 31-Oct-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 $ 182,855 $ 256,000 $ -- $ --
B. Receipts $12,331,000 $1,350,500 $ -- $ --
C. Balance Available $12,513,855 $1,606,500 $ -- $ --
D. Less Disbursements $12,031,955 $1,352,500 $ -- $ --
----------- ---------- -------- --------
E. Ending Balance $ 481,900 $ 254,000 $ -- $ --
=========== ========== ======== ========
</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: 11/22/99 /s/ W. James Lally
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<PAGE> 7
DEVLIEG OTHER ACCOUNTS
Debtor: DeVlieg Bullard, Inc. Case No: 99-52111
------------------------- ---------
Month Ending: 31-Oct-99
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SERVICES GROUP
GENERAL ACCOUNT:
1. Depository Name & Location National City Bank
----------------------------------------
2. Account Number 628513872 & 628513933
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PAYROLL ACCOUNT:
1. Depository Name & Location National City Bank
----------------------------------------
2. Account Number 628520554
----------------------------------------
Other Monies on Hand (Specify type and location) (I.e. CD's, petty cash)
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POWERMATIC
GENERAL ACCOUNT:
1. Depository Name & Location Closed w/sale
----------------------------------------
2. Account Number
----------------------------------------
PAYROLL ACCOUNT:
1. Depository Name & Location Closed w/Sale
----------------------------------------
2. Account Number
----------------------------------------
Other Monies on Hand (Specify type and location) (I.e. CDs, petty cash)
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TOOLING SYSTEMS DIVISION
GENERAL ACCOUNT:
1. Depository Name & Location National City Bank
----------------------------------------
2. Account Number 628520925
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PAYROLL ACCOUNT:
1. Depository Name & Location National City Bank
----------------------------------------
2. Account Number 628520562
----------------------------------------
Other Monies on Hand (Specify type and location) (I.e. CD's, petty cash)
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