<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: April 3, 2000
SERVICE MERCHANDISE COMPANY, INC.
(Debtor-in-Possession as of March 27, 1999)
- -------------------------------------------------------------------------------
(Exact name of registrant as specified in its charter)
<TABLE>
<S> <C> <C>
Tennessee 1-9223 62-0816060
- ---------------------------------------------------- ------------------------ ---------------------
(State or other jurisdiction of incorporation) (Commission File Number) (I.R.S. Employer
Identification No.)
7100 Service Merchandise Boulevard, Brentwood, TN 37027
- ------------------------------------------------------- ----------------------
(Address of principal executive offices) (Zip Code)
</TABLE>
Registrant's telephone number, including area code: (615) 660-6000
Not Applicable
- -------------------------------------------------------------------------------
(Former name or former address, if changed since last report)
<PAGE> 2
Item 5. Other Events
- -------------------------------------------------------------------------------
Service Merchandise Company, Inc. (the "Company") has filed its
monthly operating report for the period commencing April 3, 2000 and ending
April 30, 2000 (the "Operating Report") with the United States Bankruptcy Court
for the Middle District of Tennessee, a copy of which is attached hereto as
Exhibit 99, in connection with its voluntary petitions for reorganization under
Chapter 11 of title 11 of the United States Bankruptcy Code in Case No.
399-02649.
The Company cautions readers 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 the Operating Report is complete. The Operating
Report also contains information for periods which may be shorter or otherwise
different from those contained 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
statements or in its reports pursuant to the Exchange Act and readers are
cautioned to refer to the Exchange Act filings. 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 are 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 or
the periods covered in the Company's reports pursuant to the Exchange Act.
Actual results for such periods may differ materially from the information
contained in the Operating Report and the Company undertakes no obligation to
update or revise such Operating Report.
The Operating Report includes a Rolling Revised Cash Flow Forecast
which is a forward-looking statement subject to various assumptions regarding
the Company's business, operating performance and other factors including
revenues, expenses, asset dispositions, trade terms and capital expenditures,
and various risks and uncertainties including those set forth below. This
information should be read in conjunction with the Company's reports filed
pursuant to the Exchange Act. Readers are cautioned that such information is
being reported publicly because it is being distributed to a large number of
the Company's vendors for purposes of their credit analyses. The Company
undertakes no obligation to update such information or to disclose similar
information in future Operating Reports. The Rolling Revised Cash Flow Forecast
was not examined, reviewed or compiled by the Company's independent public
accountants. The Rolling Revised Cash Flow Forecast is subject to future
adjustments, if any, that could materially affect such information.
2
<PAGE> 3
The Company's liquidity, capital resources and results of operations
are subject to a number of risks and uncertainties, including, but not limited
to, the following: approval of plans and activities by the Bankruptcy Court,
including the Company's proposed strategic real estate initiatives; the ability
of the Company to continue as a going concern; the ability of the Company to
operate pursuant to the terms of the DIP to Exit Facility; the ability of the
Company to conduct successful clearance sales in connection with the 2000
Business Plan; the ability of the Company to sublease successfully portions of
its real estate in connection with the 2000 Business Plan; the ability of the
Company to complete its store refurbishment program within cost and time
expectations; the successful implementation of the consolidation of its
distribution centers; the ability of the Company to enter into satisfactory
arrangements with third parties with respect to real estate and
Internet-related strategies; risks associated with third parties seeking and
obtaining Court action to terminate or shorten the exclusivity period; the time
for the Company to accept or reject executory contracts including its store
leases, and for appointment of a Chapter 11 operating trustee or to convert the
Company's reorganization cases to liquidation cases; the ability of the Company
to operate successfully under a Chapter 11 proceeding, achieve planned sales
and margin, and create and have approved a plan of reorganization in the
Chapter 11 cases; potential adverse developments with respect to the Company's
liquidity or results of operations; the ability of the Company to obtain
shipments, negotiate and maintain terms with vendors and service providers for
current orders; the ability to fund and execute a Year 2000 Business Plan; the
ability of the Company to achieve cost savings; the ability of the Company to
attract, retain and compensate key executives and associates, competitive
pressures from other retailers, including specialty retailers and discount
stores, which may affect the nature and viability of the Company's business
strategy; trends in the economy as a whole which may affect consumer confidence
and consumer demand for the types of goods sold by the Company; the seasonal
nature of the Company's business and the ability of the Company to predict
consumer demand as a whole, as well as demand for specific goods; the ability
of the Company to attract and retain customers; potential adverse publicity;
real estate occupancy and development costs, including the substantial fixed
investment costs associated with opening, maintaining or closing a Company
store; uncertainties with respect to continued public trading in the Company's
securities; the ability to effect conversions to new technological systems; and
the ability to develop, prosecute, confirm and consummate one or more plans of
reorganization with respect to its Chapter 11 cases.
3
<PAGE> 4
SIGNATURES
Pursuant to the requirements of Section 12 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.
SERVICE MERCHANDISE COMPANY, INC.
Date: May 26, 2000 By: /s/ C. Steven Moore
-------------------------------------------------
C. Steven Moore
Senior Vice President, Chief Administrative
Officer, Secretary and General Counsel
4
<PAGE> 5
EXHIBIT INDEX
<TABLE>
<CAPTION>
No. Exhibit
- --------- -------------------------------------------------------------
<S> <C>
99 Operating Report for the period ending April 30, 2000
</TABLE>
<PAGE> 1
EXHIBIT 99
<TABLE>
<S> <C> <C>
In re: Case No.: 399-02649 THROUGH 399-02680
---------------------------
SERVICE MERCHANDISE COMPANY, INC.
---------------------------------
Judge: PAINE
---------------------------
Chapter 11
</TABLE>
Debtor(s)
MONTHLY OPERATING REPORT FOR PERIOD ENDING April 30, 2000
--------------
COMES NOW, SERVICE MERCHANDISE COMPANY, INC.
---------------------------------
Debtor-In-Possession, and hereby submits its Monthly Operating Report for the
period commencing April 3, 2000 and ending April 30, 2000 as shown by the report
and exhibits consisting of 16 pages and containing the following as indicated:
[X] Monthly Reporting Questionnaire (Attachment 1)
[X] Comparative Balance Sheets (Forms OPR-1 & OPR-2)
N/A Summary of Accounts Receivable (Form OPR-3)
[X] Schedule of Postpetition Liabilities (Form OPR-4)
[X] Statement of Income (Loss) (Form OPR-5)
I declare under penalty of perjury that this report and all the
attachments are true and correct to the best of my knowledge and belief. I also
hereby certify that the original Monthly Operating Report was filed with the
Bankruptcy Court Clerk and a copy delivered to the U.S. Trustee.
<TABLE>
<S> <C>
Date: DEBTOR-IN-POSSESSION
---------------------------
By: /s/ Tom Garrett
---------------------------------------------------
Name and Title: TOM GARRETT, SENIOR VICE PRESIDENT & CFO
---------------------------------------------------
Address: 7100 SERVICE MERCHANDISE DRIVE
---------------------------------------------------
BRENTWOOD, TENNESSEE 37027
---------------------------------------------------
Telephone No: 660-3477
---------------------------------------------------
</TABLE>
Note: Report subject to further verification and account reconciliation
procedures
<PAGE> 2
CHAPTER 11
MONTHLY OPERATING REPORT
MONTHLY REPORTING QUESTIONNAIRE
CASE NAME: SERVICE MERCHANDISE COMPANY, INC. et. al.
CASE NUMBER: 399-02649 THROUGH 399-02680
PERIOD: APRIL 3, 2000 THROUGH APRIL 30, 2000
1. Payroll
<TABLE>
<CAPTION>
WAGES TAXES
OFFICERS TITLE GROSS NET DUE PAID
- ----------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
SAM CUSANO CHIEF EXECUTIVE OFFICER 50,188.10 31,987.21 4,513.07 13,307.57
STEVE MOORE SENIOR VICE PRESIDENT, CHIEF ADMINISTRATIVE OFFICER,
GENERAL COUNSEL AND SECRETARY 27,752.86 18,561.35 2,196.49 6,743.91
TOM GARRETT SENIOR VICE PRESIDENT AND CHIEF FINANCIAL OFFICER 26,387.08 18,818.08 1,647.00 5,602.09
GARY SEASE SENIOR VICE PRESIDENT, LOGISTICS 25,507.28 16,555.39 2,053.48 6,074.48
CHARLES SEPTER PRESIDENT AND CHIEF OPERATING OFFICER 40,972.18 25,830.03 3,599.30 10,582.44
ROBERT J. PINDRED VICE PRESIDENT AND TREASURER 11,560.48 8,433.00 568.05 1,684.83
JOE M. ELLIOTT VICE PRESIDENT, PROPERTY ADMINISTRATION 11,597.13 7,777.70 629.65 1,831.85
ERIC KOVATS VICE PRESIDENT, STORES 22,000.46 13,076.78 1,544.80 4,783.17
KARREN PRASIFKA ASSISTANT GENERAL COUNSEL VICE PRESIDENT 13,120.61 8,940.00 1,028.53 3,036.55
BILLY STEWART ASSISTANT TAX VICE PRESIDENT, TAX 6,549.73 4,665.40 332.82 986.72
KENNETH A CONWAY VICE PRESIDENT AND CONTROLLER 12,335.22 9,392.90 655.55 1,939.87
</TABLE>
<PAGE> 3
CHAPTER 11
MONTHLY OPERATING REPORT
MONTHLY REPORTING QUESTIONNAIRE
CASE NAME: SERVICE MERCHANDISE COMPANY, INC. et. al.
CASE NUMBER: 399-02649 THROUGH 399-02680
PERIOD: April 3, 2000 THROUGH April 30, 2000
<TABLE>
<CAPTION>
2. INSURANCE
COVERAGE POLICY EXPIRATION PREMIUM DATE COVERAGE
TYPE NAME OF CARRIER AMOUNT NUMBER DATE AMOUNT PAID THRU
- -----------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
Property Fireman's Fund Insurance Co $5 Million CCIPW12011 12/31/00 $1,441,249 12/31/00
Royal $5 Million RHD314289 12/31/00 $ 100,000 12/31/00
Westchester Fire $15 Million 1XA394310 12/31/00 $ 50,100 12/31/00
Allianz Insurance Co $12 Million CLP1034720 12/31/00 $ 20,040 12/31/00
TIG Insurance Co $13 Million XPT38797667 12/31/00 $ 32,500 12/31/00
Westchester Fire $20 Million 1XA394311 12/31/00 $ 10,020 12/31/00
Allianz Insurance Co $30 Million CLP1034720 12/31/00 $ 15,030 12/31/00
Allianz Insurance Co $25 Million CLP1034720 12/31/00 $ 6,680 12/31/00
Boiler & Machinery Hartford Steam Boiler $10 Million BMTBD 5/1/00 $ 11,900 5/1/00
Transit Fireman's Fund Insurance Co $1 Million CCIMG72820 12/31/00 $ 10,000 12/31/00
Ocean Cargo Fireman's Fund Insurance Co $10 Million CR37211 12/31/00 $ 40,000 12/31/00
Special Crime Reliance Insurance Co $25 Million NFK1951937 5/1/02 $ 13,458 5/1/02
Crime National Union Fire Ins Co $10 Million 858-0797 3/1/01 $ 56,505 3/1/01
Fiduciary National Union Fire Ins Co $10 Million 267-81-30 3/1/01 $ 19,140 3/1/01
Employment Practices Liability Chubb Insurance Co $10 Million 81278901A 3/1/01 $ 130,845 3/1/01
Royal Insurance Co $10 Million PSF000010 3/1/01 $ 56,364 3/1/01
Directors & Officers Continental Insurance Co $10 Million 300714943 3/1/01 $ 453,500 3/1/01
Chubb Insurance Co $10 Million 81278902-A 3/1/01 $ 266,666 3/1/01
Royal Insurance Co $10 Million PSF000009 3/1/01 $ 133,000 3/1/01
Umbrella Federal Insurance Co $50 Million 79763295 12/31/01 $ 63,357 12/31/00
Excess Liability American Guarantee & Liab $50 Million AEC287610700 12/31/00 $ 25,000 12/31/00
International Ace American Ins Co $1 Million PHF051491 12/31/00 $ 2,500 12/31/00
Punitive Damages Chubb Atlantic Indemnity $50 Million (00)3310-05-98 12/31/00 $ 17,160 12/31/00
Punitive Damages - Excess Zurich International Bermuda $50 Million ZGEB-091 PD 12/31/00 $ 5,000 12/31/00
General Liability Ace American Ins Co $5 Million XSLG19903254 12/31/00 $ 11,032 12/31/00
Workers' Compensation Pacific Employers Ins Co Statutory WLRC42662112 12/31/00 $ 19,978 12/31/00
WC Excess Ace American Ins Co Statutory XWC011950 12/31/00 $ 1,601 12/31/00
WC Contractual Indemnity Illinois Union Insurance Co Statutory CTPG19903461 12/31/00 $ 2,083 12/31/00
WC Nevada Ace American Ins Co Statutory NWCC42662173 12/31/00 $ 1,737 12/31/00
Auto Pacific Employers Ins Co $1 Million ISAH07571008 12/31/00 $ 2,083 12/31/00
</TABLE>
<PAGE> 4
CHAPTER 11
MONTHLY OPERATING REPORT
MONTHLY REPORTING QUESTIONNAIRE
CASE NAME: SERVICE MERCHANDISE COMPANY, INC. et. al.
CASE NUMBER: 399-02649 THROUGH 399-02680
PERIOD: APRIL 3, 2000 THROUGH APRIL 30, 2000
3. BANK ACCOUNTS
TOTAL CASH AND CASH EQUIVALENTS
<TABLE>
<S> <C>
CASH IN STORES AND HOME OFFICE
- ------------------------------
HOME OFFICE $ 12,250
RETAIL SAFE FUNDS 1,952,108
CORPORATE ACCOUNTS 4,421,134
- --------------------
STORE DEPOSITORY ACCOUNTS
- -------------------------
FIRST TENNESSEE 1,308,465
FIRSTAR 32,702
SOCIETY NATIONAL BANK 540,402
BANK OF BOSTON 484,584
BANK OF BOSTON CONNECTICUT 276,417
MERCANTILE BANK 106,955
FIRST UNION 4,092,890
HARRIS TRUST 821,183
BANK ONE LOUISIANA 563,155
ABN - AMRO BANK 267,034
COMERICA BANK 375,048
AM SOUTH 322,639
BANK OF AMERICA CALIFORNIA 662,421
FIRST AMERICAN NATIONAL BANK 189,188
HERITAGE BANK OF NEVADA 775
BANK OF OKLAHOMA 180,508
CHASE BANK OF TEXAS 1,115,544
HIBERNIA 107,131
SINGLE STORE DEPOSITORY ACCOUNTS 535,069
WELLS FARGO BANK 105,253
NATIONSBANK 332,600
BANK ONE, IN 213,425
PNC BANK 955,931
BANK ONE , TEXAS 46,580
CREDIT CARD CASH ACCOUNTS (SALES PROCESSED BY CREDIT CARD COMPANY) 16,310,594
- ------------------------------------------------------------------
OTHER DEPOSITORY ACCOUNTS
- -------------------------
SERVICE MERCHANDISE - MUSCULAR DYSTROPHY ASSOC 57,189
OTHER CASH ACCOUNTS 1,112,257
------------
TOTAL CASH PER GENERAL LEDGER $ 37,501,430
============
</TABLE>
<PAGE> 5
CHAPTER 11
MONTHLY OPERATING REPORT
MONTHLY REPORTING QUESTIONNAIRE
CASE NAME: SERVICE MERCHANDISE COMPANY, INC. et. al.
CASE NUMBER: 399-02649 THROUGH 399-02680
PERIOD: APRIL 3, 2000 THROUGH APRIL 30, 2000
RECEIPTS AND DISBURSEMENTS
(Dollars in Thousands)
<TABLE>
<CAPTION>
Actual Actual Actual Actual Total
Monday 4/3/00 4/10/00 4/17/00 4/24/00 4/3/00
Sunday 4/9/00 4/16/00 4/23/00 4/30/00 4/30/00
-------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
Receipts:
Sales receipts $ 26,335 $ 24,822 $ 28,952 $ 27,301 $ 107,410
Miscellaneous receipts -- -- 14,900 251 15,151
-------------------------------------------------------------------------
Total available collections 26,335 24,822 43,852 27,552 122,561
Disbursements:
Merchandise disbursements 11,660 14,408 12,572 14,577 53,217
Non-merchandise disbursements 21,649 37,397 15,191 15,436 89,673
-------------------------------------------------------------------------
Total disbursements: 33,309 51,805 27,763 30,013 142,890
-------------------------------------------------------------------------
Net receipts/(disbursements) $ (6,974) $ (26,983) $ 16,089 $ (2,461) $ (20,329)
=========================================================================
</TABLE>
<PAGE> 6
CHAPTER 11
MONTHLY OPERATING REPORT
MONTHLY REPORTING QUESTIONNAIRE
CASE NAME: SERVICE MERCHANDISE COMPANY, INC. et. al.
CASE NUMBER: 399-02649 THROUGH 399-02680
PERIOD: APRIL 3, 2000 THROUGH APRIL 30, 2000
ROLLING REVISED CASH FLOW FORECAST
(Dollars in Thousands)
<TABLE>
<CAPTION>
Actual Forecast Forecast Forecast Forecast
5/14/00 5/21/00 5/28/00 7/2/00 7/30/00
---------- ---------- ---------- ---------- ----------
<S> <C> <C> <C> <C> <C>
Ending total revolver balance $ 148,633 $ 136,187 $ 132,701 $ 99,682 $ 109,741
Term loan 60,000 60,000 60,000 60,000 60,000
Standby letters of credit 40,154 41,027 38,737 30,362 27,112
Trade letters of credit 2,818 5,066 6,015 21,478 40,741
---------- ---------- ---------- ---------- ----------
Total extensions of credit 251,605 242,280 237,453 211,522 237,594
Borrowing base 515,008 512,618 493,308 440,549 421,704
---------- ---------- ---------- ---------- ----------
Availability $ 263,403 $ 270,338 $ 255,855 $ 229,027 $ 184,110
========== ========== ========== ========== ==========
</TABLE>
<PAGE> 7
CHAPTER 11
MONTHLY OPERATING REPORT
MONTHLY REPORTING QUESTIONNAIRE
CASE NAME: SERVICE MERCHANDISE COMPANY, INC. et. al.
CASE NUMBER: 399-02649 THROUGH 399-02680
PERIOD: April 3, 2000 THROUGH April 30, 2000
4. Payments to Professionals April 3, 2000 through April 30, 2000
<TABLE>
<CAPTION>
Vendor # Vendor Name Check Amt. Check Date Check #
- ----------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
99459 Robert L. Berger $ 32,572.24 4/13/00 B0021540
40443 Robert J. Bard, Esq. $ 500.00 4/14/00 30044666
86237 Brusniak, Clement, Harrison & McCool, PC $ 256.41 4/19/00 50000388
57117 Deloitte & Touche $ 62,288.74 4/24/00 50000865
71217 Bass, Berry & Sims $ 140,055.44 4/24/00 B0021624
98378 Skadden, Arps, Slate, Meagher & Flom $ 764,379.00 4/24/00 B0021625
99391 Otterbourg, Steindler, Houston & Rosen, PC $ 134,126.56 4/24/00 B0021626
99104 Jay Alix & Associates $ 213,634.71 4/25/00 B0021627
101625 D. G. Hart Associates, Inc. $ 135,255.38 4/25/00 B0021628
79108 Ernst & Young $ 2,625.00 4/25/00 B0021630
101232 E & Y Restructuring $ 115,277.00 4/25/00 B0021631
63078 Weil, Gotshal & Manges, LLP $ 31,395.78 4/25/00 B0021632
99454 Harwell, Howard, Hyne, Gabert & Manner, PC $ 43,027.30 4/25/00 B0021633
99444 Sitrick & Company $ 191,581.28 4/25/00 B0021634
80443 Coudert Brothers $ 2,051.87 4/26/00 50001362
67017 Barkley & Thompson $ 101.77 4/27/00 50001482
</TABLE>
<PAGE> 8
SERVICE MERCHANDISE COMPANY, INC. AND SUBSIDIARIES
Consolidated Balance Sheets (Unaudited)
(Debtor - in - Possession)
(In thousands)
<TABLE>
<CAPTION>
APRIL 30, APRIL 2,
2000 2000
----------- -----------
<S> <C> <C>
ASSETS
Current Assets:
Cash and cash equivalents $ 37,501 $ 29,513
Accounts receivable 7,282 6,135
Inventories 636,445 644,368
Prepaid expenses and other assets 23,757 24,174
----------- -----------
TOTAL CURRENT ASSETS 704,986 704,190
----------- -----------
PROPERTY AND EQUIPMENT
Owned assets, net of accumulated depreciation 348,316 346,340
Capitalized leases, net of accumulated amortization 13,840 14,200
----------- -----------
TOTAL PROPERTY AND EQUIPMENT 362,157 360,540
----------- -----------
Other assets and deferred charges 52,408 45,337
----------- -----------
TOTAL ASSETS $ 1,119,551 $ 1,110,066
=========== ===========
LIABILITIES AND SHAREHOLDERS' (DEFICIT) EQUITY
Liabilities Not Subject To Compromise
Current Liabilities:
Notes payable to banks $ 156,655 $ 97,146
Accounts payable 63,461 60,382
Accrued expenses 139,801 138,244
State & local sales tax 12,487 12,672
Current maturities of long-term debt -- 1,000
Current maturities capitalized leases 353 118
----------- -----------
TOTAL CURRENT LIABILITIES 372,758 309,561
Long -Term Liabilities:
Long-term debt 60,000 98,250
Capitalized lease obligations 2,194 2,467
Liabilities Subject To Compromise:
Accrued restructuring costs 44,530 44,604
Capitalized lease obligations 24,798 26,405
Long-term debt 426,089 426,844
Accounts payable 193,128 192,829
Accrued expenses 65,453 64,562
----------- -----------
Total Liabilities Subject To Compromise 753,998 755,244
TOTAL LIABILITIES 1,188,949 1,165,522
----------- -----------
COMMITMENTS AND CONTINGENCIES
SHAREHOLDERS' (DEFICIT) EQUITY
Common stock 49,979 49,989
Additional paid-in-capital 6,211 6,288
Deferred compensation (503) (565)
Accumulated other comprehensive loss -- --
Retained (deficit) earnings (125,084) (111,169)
----------- -----------
TOTAL SHAREHOLDERS' (DEFICIT) EQUITY (69,398) (55,456)
TOTAL LIABILITIES AND SHAREHOLDERS' (DEFICIT) EQUITY $ 1,119,551 $ 1,110,066
=========== ===========
</TABLE>
<PAGE> 9
CHAPTER 11
MONTHLY OPERATING REPORT
CASE NAME: SERVICE MERCHANDISE COMPANY, INC. ET AL.
CASE NUMBER: 399-02649 THROUGH 399-02680
PERIOD: April 3, 2000 THROUGH APRIL 30, 2000
SUMMARY OF ACCOUNTS RECEIVABLE
Month Ended: 04/30/00
FORM OPR-3 NOT APPLICABLE
<PAGE> 10
CHAPTER 11
MONTHLY OPERATING REPORT
MONTHLY REPORTING QUESTIONNAIRE
CASE NAME: SERVICE MERCHANDISE COMPANY, INC. ET. AL.
CASE NUMBER: 399-02649 THROUGH 399-02680
PERIOD: APRIL 2, 2000 THROUGH APRIL 30, 2000
SCHEDULE OF POST PETITION LIABILITIES-ACCOUNTS PAYABLE
Month Ended: 04/30/2000
FORM OPR-4
<TABLE>
<CAPTION>
Total Current
--------- ---------
<S> <C> <C>
Trade Accounts Payable (Merchandise) $ 63,461 $ 63,461
Total Current
--------- ---------
Expense & other payables $ 139,801 $ 139,801
</TABLE>
<PAGE> 11
CHAPTER 11
MONTHLY OPERATING REPORT
MONTHLY REPORTING QUESTIONNAIRE
CASE NAME: SERVICE MERCHANDISE COMPANY, INC. ET. AL.
CASE NUMBER: 399-02649 THROUGH 399-02680
PERIOD: APRIL 3, 2000 THROUGH APRIL 30, 2000
SCHEDULE OF POST PETITION LIABILITIES
FORM OPR-4
<TABLE>
<CAPTION>
Date Date Total 0-30
TAXES PAYABLE Incurred Due Due Days
-------- ------- ----------- ---------
<S> <C> <C> <C> <C>
Federal income tax ** Various Various 7,843,442 7,843,442
State income tax Various Various (42,732) (42,732)
----------- ----------
SUBTOTAL 7,800,710 7,800,710
----------- ----------
Sales/use tax SUBTOTAL * Various Various 12,487,472 12,487,472
----------- ----------
Personal property tax * Various Various 2,195,428 2,195,428
Real estate taxes * Various Various 9,225,711 9,225,711
Inventory taxes * Various Various -- --
Gross receipts/bus. licenses * Various Various (14,811) (14,811)
Franchise taxes * Various Various 363,801 363,801
----------- ----------
SUBTOTAL 11,770,129 11,770,129
----------- ----------
----------- ----------
TOTAL TAXES PAYABLE 32,058,311 32,058,311
=========== ==========
</TABLE>
* liability included in accrued expenses on OPR-2
** tax reserve
<PAGE> 12
CHAPTER 11
MONTHLY OPERATING REPORT
MONTHLY REPORTING QUESTIONNAIRE
CASE NAME: SERVICE MERCHANDISE COMPANY, INC. ET. AL.
CASE NUMBER: 399-02649 THROUGH 399-02680
PERIOD: APRIL 3, 2000 THROUGH APRIL 30, 2000
SCHEDULE OF POST PETITION LIABILITIES
FORM OPR-4
(DOLLARS IN THOUSANDS)
<TABLE>
<CAPTION>
DATE TOTAL DUE
INCURRED DATE DUE (4/30/00 BALANCE)
------------------------------------------------------------
<S> <C> <C> <C>
POST PETITION SECURED DEBT
Revolver borrowings 3/27/99 6/30/01 $ 156,655
Facility standby letters of credit 3/27/99 6/30/01 58,703
Facility trade letters of credit 3/27/99 6/30/01 139
Term loans 3/27/99 6/30/01 60,000
----------
TOTAL EXTENSIONS OF CREDIT $ 275,497
==========
ACCRUED INTEREST PAYABLE $ 801
==========
</TABLE>
<PAGE> 13
SERVICE MERCHANDISE COMPANY, INC. AND SUBSIDIARIES
Consolidated Statements of Operations (Unaudited)
(Debtor - in - Possession)
(In thousands)
<TABLE>
<CAPTION>
ACTIVITY
APRIL 2, 2000
THROUGH
APRIL 30, 2000
---------------
<S> <C>
Net Sales $ 106,871
Costs of merchandise sold and buying and occupancy expense 81,494
-----------
Gross margin after cost of merchandise sold and buying and occupancy expenses 25,377
Selling, General and Administrative Expenses:
Net Employment Expense 23,779
Net Advertising 2,581
Banking and Other Fees 1,611
Real Estate and Other Taxes 1,775
Supplies 779
Communication and Equipment 398
Travel 476
UCC and Other Services (428)
Legal and Professional 360
Sales and Shipping 224
Insurance 287
Miscellaneous 191
Credit Card Services (39)
-----------
Total Selling, General and Administrative Expenses 31,993
Other expense/(income), net (1,198)
Restructuring charge (credit) (85)
Depreciation and amortization 3,077
-----------
Earnings (loss) before interest, reorganization items, and income tax (8,410)
Interest expense - debt 2,957
Interest expense - capitalized leases 286
-----------
Earnings (loss) before reorganization items, and income tax (11,654)
Reorganization Items:
Legal and Professional 1,868
Miscellaneous fees 178
Close Store Charges 218
-----------
Total Reorganization Items 2,263
Earnings (loss) before income tax (13,917)
Income tax benefit --
Cumulative Effect of Change in Accounting Principles --
-----------
Net earnings (loss) $ (13,917)
===========
</TABLE>