UNITED STATES 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): September 24, 1998
Exact name of registrant as specified in its charter: MRS Technology, Inc.
State or other jurisdiction of incorporation: Massachusetts
Commission File Number: 000-21908
IRS Employer Identification Number: 04-2904966
Address of principal executive offices: 10 Elizabeth Drive, Chelmsford, MA
Zip Code: 01824-4112
Registrant's telephone number, including area code: (978)250-0450
<PAGE>
Item 5. Other Events
MONTHLY OPERATING REPORTS FILED WITH FEDERAL TRUSTEE
On July 1, 1998, MRS Technology, Inc. (the "Company") filed a voluntary
petititon for reorganization under Chapter 11 of the U.S. Bankruptcy Code.
The petition was filed in the U.S. Bankruptcy court for the District of
Massachusetts (Western Division). The case number is 98-44938-JFQ.
Pursuant to Bankruptcy Rule 2015 and the United States Trustee's Operating
Guidelines and Reporting requirements for Chapter 11 cases, the Company is
obligated to file Monthly Operating Reports (MORs) with the Federal
Trustee. The Company's MORs for this case for the month ending August 31,
1998 was filed with the Federal Trustee at the U.S. Bankruptcy Court in
Worcester, Massachusetts on September 24, 1998.
Item 7. Financial Statements, Pro Forma Financial Statements and Exhibits
{c} Exhibits
<TABLE>
<CAPTION>
Exhibit Description of Document
- ------- -----------------------
<S> <C>
99.1 Monthly operating Report (Consolidated) of the Company for the
month ending August 31, 1998 (1)
</TABLE>
SIGNATURES
Pursuant to the requirements of the Securities and Exchange Act of 1934,
the Registrant has duly caused this report to be signed on its behalf by
the undersigned hereto autorized.
MRS Technology, Inc.
Date: September 24, 1998
/s/ Patricia F. DiIanni
Vice President and Chief Financial Officer
EXHIBIT 99.1
UNITED STATES BANKRUPTCY COURT
WESTERN DIVISION OF MASSACHUSETTS
Case Name: MRS Technology, Inc.
Case Number: 98-44938-JFQ
CHAPTER 11 MONTHLY OPERATING REPORT
FOR MONTH ENDING AUGUST,1998
Comes Now, MRS Technology, Inc.
Debtor-In-Possession, and hereby submits its Monthly Operating Report for
the period commencing August 1, 1998 and ending August 31, 1998 as shown
by the report and exhibits consisting of 14 pages and containing the
following, as indicated:
(X) Monthly Reporting Questionnaire (Attachment 1)
(X) Comparative Balance Sheets (Forms OPR-1 & OPR-2)
(X) Summary of Accounts Receivable (Form OPR-3)
(X) Schedule of Post-petition Liabilities (Form OPR-4)
(X) Income Statement (Form OPR-5)
(X) Statement of Sources and Uses of Cash (Form OPR-6)
I declare under penalty of perjury that this report and all attachments
are true and correct to the best of my knowledge and belief.
Date: September 24, 1998 DEBTOR(S)-IN-POSSESSION
/s/ Patricia F. DiIanni
Name & Title: Patricia F. DiIanni
Vice President and Chief
Financial Officer
Address: MRS Technology, Inc.
10 Elizabeth Drive
Chelmsford, MA 01824
Telephone No.: (978) 250-0450
<PAGE>
ATTACHMENT 1
CHAPTER 11
MONTHLY OPERATING REPORT
MONTHLY REPORTING QUESTIONNAIRE
Case Name: MRS Technology, Inc.
Case Number: 98-44938-JFQ
MONTH OF: August 1998
1. Payroll: State the amount of all executive wages paid and taxes
withheld and paid.
<TABLE>
<CAPTION>
Name and Title Wages Paid Taxes Withheld
Of Executive Gross Net Due Paid
<S> <C> <C> <C> <C>
C.P. Herrmann, CEO $14,615.40 $12,093.59 Weekly Weekly
Before Before
P.F. DiIanni, CFO $ 7,692.32 $ 5,715.93 Payday Payday
E. DaSilviera, VP $ 8,076.92 $ 5,898.97 Via ADP Via ADP
TOTAL EXECUTIVE PAYROLL: $30,384.64
</TABLE>
2. Insurance: Is workers' compensation and other insurance in effect?
Yes. Are payments current? Yes. If any policy has lapsed, been replaced
or renewed, state so in the schedule below. Attach a copy of the new
policy's binder or cover page.
Date
Carrier Coverage Expiration Premium Coverage
Type Name Amount Policy # Date Amounts Pd Thru
Homeowners
Rental Property
Liability
Vehicle
Workers
Compensation
Other
<PAGE>
CHAPTER 11 ATTACHMENT 1
MONTHLY OPERATING REPORT (Page 2)
DETAILED LISTING OF DISBURSEMENTS
CASE NAME: MRS Technology, Inc.
CASE NUMBER: 98-44938-JFQ
MONTH OF: August 1998
<TABLE>
<CAPTION>
3. Bank Accounts Account Type
Operating *MRSA Payroll Other Total
<S> <C> <C> <C> <C> <C>
Bank Name Fleet Japan BankBoston Petty
Cash
Account Number 94088-55556 N/A 896-60243 N/A
BEGINNING BOOK $168,035 $ 7,474 $ 35,224 $1,557 $212,290
BALANCE
PLUS:
Deposits 299,933 16,108 0 1,200 317,241
LESS:
Disbursements (88,818) (6,726)(111,742) (920) (208,206)
Other:
Transfers
In (Out) (140,000) 0 140,000 0 0
Foreign Exchange
Impact 184 184
ENDING BOOK
BALANCE $239,150 $17,040 $ 63,482 $1,837 $321,509
* MRS Asia is located in Japan and has one service employee.
</TABLE>
4. Post-Petition Payments: List any post-petition payments to
professionals and payments on Pre-petition debts in the schedule below
(attach separate sheet if necessary).
<TABLE>
<CAPTION>
Payments To/On Amount Date Check #
<S> <C> <C> <C>
Professionals (attorneys, None
Accountants, etc.):
Pre-petition Debts: None
</TABLE>
<PAGE>
COMPARATIVE BALANCE SHEETS FORM OPR-1
REV 7/92
Case Name: MRS Technology, Inc. Month Ended: August 1998
Case Number: 98-44938-JFQ
<TABLE>
<CAPTION>
FILING
DATE MONTH
ASSETS 7/1/98 July
<S> <C> <C>
CURRENT ASSETS
Cash $ 129,041 $ 212,290
Other negotiable instruments (i.e.
CD's, Treasury Bills, Etc.) 0 0
Accounts Receivable, Net (OPR-3) 201,899 412,004
Less allowance for doubtful accounts (21,045) (21,045)
Inventory, at cost 5,575,890 5,443,375
Prepaid expenses and deposits 132,884 131,300
Investments 0 0
Other: Uninvoiced Ship. 135,374 82,960
TOTAL CURRENT ASSETS $6,154,043 $6,260,884
PROPERTY, PLANT AND EQUIPMENT, AT COST 3,906,242 3,906,242
Less Accumulated Depreciation (3,775,570) (3,794,569)
NET PROPERTY, PLANT AND EQUIPMENT 130,672 111,673
+ OTHER ASSETS 29,339 29,091
TOTAL ASSETS $6,314,054 $6,401,648
+Itemize if value of "Other Assets" exceeds 10% of "Total Assets"
</TABLE>
<PAGE>
COMPARATIVE BALANCE SHEETS FORM OPR-2
REV 7/92
Case Name: MRS Technology, Inc. Month Ended: August 1998
Case Number: 98-44938-JFQ
<TABLE>
<CAPTION>
TOTAL MONTH
LIABILITIES 7/1/98 July
<S> <C> <C>
POST PETITION LIABILITIES 0 98,018
Priority Debt/Secured &
Employee Expenses * $ 1,040,051 $ 1,070,538
Unsecured Debt 2,217,507 2,315,871
TOTAL PRE PETITION LIABILITIES 3,257,558 3,386,409
TOTAL LIABILITIES 3,257,558 3,484,427
SHAREHOLDER'S EQUITY (DEFICIT)
Preferred Stock 0 0
Common Stock 68,586 68,586
Paid-In Capital 36,511,205 36,511,205
Retained Earnings
Through Filing Date (33,523,295) (33,523,295)
Post Filing Date 0 (130,874)
TOTAL SHAREHOLDERS' EQUITY $ 3,056,496 $ 2,925,622
TOTAL LIABILITIES AND
SHAREHOLDERS' EQUITY $ 6,314,054 $ 6,410,049
* Includes accrued interest and expenses.
</TABLE>
<PAGE>
COMPARATIVE BALANCE SHEETS FORM OPR-1
REV 7/92
Case Name: MRS Technology, Inc. Month Ended: August 1998
Case Number: 98-44938-JFQ
<TABLE>
<CAPTION>
FILING
DATE MONTH
ASSETS 7/1/98 August
<S> <C> <C>
CURRENT ASSETS
Cash $ 129,041 $ 321,509
Other negotiable instruments (i.e.
CD's, Treasury Bills, Etc.) 0 0
Accounts Receivable, Net (OPR-3) 201,899 266,224
Less allowance for doubtful accounts (21,045) (21,045)
Inventory, at cost 5,575,890 5,411,849
Prepaid expenses and deposits 132,884 130,245
Investments 0 0
Other: Uninvoiced Ship. 135,374 82,960
TOTAL CURRENT ASSETS $6,154,043 $6,191,742
PROPERTY, PLANT AND EQUIPMENT, AT COST 3,906,242 3,906,242
Less Accumulated Depreciation (3,775,570) (3,809,060)
NET PROPERTY, PLANT AND EQUIPMENT 130,672 97,182
+ OTHER ASSETS 29,339 28,946
TOTAL ASSETS $6,314,054 $6,317,870
+Itemize if value of "Other Assets" exceeds 10% of "Total Assets"
</TABLE>
<PAGE>
COMPARATIVE BALANCE SHEETS FORM OPR-2
REV 7/92
Case Name: MRS Technology, Inc. Month Ended: August 1998
Case Number: 98-44938-JFQ
<TABLE>
<CAPTION>
TOTAL MONTH
LIABILITIES 7/1/98 August
<S> <C> <C>
POST PETITION LIABILITIES 0 97,475
Priority Debt/Secured &
Employee Expenses * $ 1,040,051 $ 1,114,668
Unsecured Debt 2,217,507 2,343,878
TOTAL PRE PETITION LIABILITIES 3,257,558 3,458,546
TOTAL LIABILITIES 3,257,558 3,556,021
SHAREHOLDER'S EQUITY (DEFICIT)
Preferred Stock 0 0
Common Stock 68,586 68,585
Paid-In Capital 36,511,205 36,511,205
Retained Earnings
Through Filing Date (33,523,295) (33,523,295)
Post Filing Date 0 (294,646)
TOTAL SHAREHOLDERS' EQUITY $ 3,056,496 $ 2,761,849
TOTAL LIABILITIES AND
SHAREHOLDERS' EQUITY $ 6,314,054 $ 6,317,870
* Includes accrued interest and expenses.
</TABLE>
<PAGE>
SUMMARY OF ACCOUNTS RECEIVABLE
FORM OPR-3
REV 7/92
Case Name: MRS Technology, Inc. Month Ended: August 1998
Case Number: 98-44938-JFQ
<TABLE>
<CAPTION>
0-30 31-60 61-90 OVER
TOTAl DAYS DAYS DAYS 90 DAYS
<S> <C> <C> <C> <C> <C>
DATE OF FILING:
7/1/98 $201,899 $146,526 $31,187 $5,779 $18,407
Allowance for
doubtful accounts -
General (21,045) ( ) ( ) ( ) ( )
MONTH: July 1998 $412,005 $333,558 $55,532 $9,371 $13,544
Allowance for
doubtful accounts -
General (21,045) ( ) ( ) ( ) ( )
MONTH: August 1998 $265,342 $128,036 $49,620 $67,842 $19,844
Allowance for
doubtful accounts (21,045) ( ) ( ) ( ) ( )
MONTH:
Allowance for
doubtful accounts ( ) ( ) ( ) ( ) ( )
MONTH:
Allowance for
doubtful accounts ( ) ( ) ( ) ( ) ( )
MONTH:
Allowance for
doubtful accounts ( ) ( ) ( ) ( ) ( )
MONTH:
Allowance for
doubtful accounts ( ) ( ) ( ) ( ) ( )
</TABLE>
<PAGE>
SCHEDULE OF POST PETITION LIABILITIES
FORM OPR-4
REV 7/92
Case Name: MRS Technology, Inc. Month Ended: August 1998
Case Number: 98-44938-0JFQ
<TABLE>
<CAPTION>
DATE DATE TOTAL
INCURRED DUE DUE
<S> <C> <C> <C>
TAXES PAYABLE
Federal Income Taxes 0
FICA-Employer's Share 0
FICA-Employer's Share 0
Unemployment Tax 0
State Income Tax 0
State Sales & Use Tax 0
State Tax 0
Personal Property Tax 0
TOTAL TAXES PAYABLE 0
POSTPETITION SECURED DEBT 1,114,668
POSTPETITION UNSECURED DEBT 0 0
ACCRUED INTEREST PAYABLE 0 0
TRADE ACCOUNTS PAYABLE & OTHER:
(List Separately*)
See attached sheet $97,475
Totals $97,475
*Attach separate page if necessary.
</TABLE>
Note: Total postpetition liabilities shown here must agree with the same
item as shown on OPR-2 of this report.
<PAGE>
SCHEDULE OF POST PETITION LIABILITIES
FORM OPR-4
REV 7/92
Case Name: MRS Technology, Inc. Month Ended: August 1998
Case Number: 98-44938-JFQ
<TABLE>
<CAPTION>
0-30 31-60 11-90 OVER
DAYS DAYS DAYS 90 DAYS
<S> <C> <C> <C> <C>
TAXES PAYABLE
Federal Income Taxes
FICA-Employer's Share
FICA-Employer's Share
Unemployment Tax
State Income Tax
State Sales & Use Tax
State Tax
Personal Property Tax
TOTAL TAXES PAYABLE
POSTPETITION SECURED DEBT
POSTPETITION UNSECURED DEBT
ACCRUED INTEREST PAYABLE
TRADE ACCOUNTS PAYABLE & OTHER:
(List Separately*)
Totals
*Attach separate page if necessary.
</TABLE>
Note: Total postpetition liabilities shown here must agree with the same
item as shown on OPR-2 of this report.
<PAGE>
<TABLE>
<CAPTION>
Schedule of Post Petition Liabilities - Form 4
Trade Accounts Payable & Other
Date Amount Vendor
<S> <C> <C>
7/31/98 $ 413.69 ACT Teleconferencing
8/13/98 $12,353.96 Altid Enterprises
8/13/98 $12,353.96 Altid Enterprises
8/13/98 $12,353.96 Altid Enterprises
8/25/98 $ 32.00 Bain Pest Control Service
7/22/98 $ 1,000.00 Colonial Gas
8/24/98 $ 1,156.15 Delta Dental
8/19/98 $ 30.50 Federal Express
8/26/98 $ 57.60 Federal Express
8/15/98 $ 6,592.40 Harvard Community Health Plan
8/13/98 $ 88.88 HBS&R Client Trust
8/10/98 $ 360.15 J.D. Printing
8/21/98 $ 2,031.78 J.F. Quinn
8/1/98 $ 291.94 J.F. Quinn
8/31/98 $ 150.01 J.F. Quinn
8/22/98 $ 116.59 Joe Halberg
8/1/98 $ 347.43 Lucent Technologies
8/2/98 $ 859.25 Lucent Technologies
8/31/98 $ 719.12 Mass Mutual
8/24/98 $ 502.55 Reliance Standard Life
8/17/98 $ 1,929.10 Ron Trevisone
8/21/98 $ 1,329.20 Tom Guimond
8/5/98 $ 8.00 UFAC
8/4/98 $ 155.40 Xerox Corporation
8/1/98 $ 420.00 Decision One
ACCRUALS:
7/31/98 $ 5,589.00 Vacation
7/31/98 $33,000.00 Legal
7/31/98 $10,000.00 Audit
7/31/98 $ 6,000.00 Commissions
$97,474.97
</TABLE>
<PAGE>
INCOME STATEMENT
FORM OPR-5
REV 7/92
Case Name: MRS Technology, Inc. Month Ended: August 1998
Case Number: 98-44938-JFQ
<TABLE>
<CAPTION>
MONTH
July
<S> <C>
NET REVENUE (INCOME) $ 341,679
COST OF GOODS SOLD
Materials 107,334
Labor-Direct 53,386
Manufacturing Overhead 109,768
TOTAL COST OF GOODS SOLD LIABILITIES 270,488
GROSS PROFIT 71,191
Selling and Marketing 17,465
General and Administrative 155,931
Other:Research & Development 16,110
Other (Income)/Expense (8,224)
TOTAL OPERATING EXPENSES 181,282
INCOME BEFORE INTEREST, DEPRECIATION,
TAXES, OR EXTRAORDINARY EXPENSES (110,091)
INTEREST EXPENSE 10,182
DEPRECIATION 19,000
INCOME TAX EXPENSE (BENEFIT) 0
EXTRAORDINARY INCOME (EXPENSE)* 0
NET INCOME (LOSS) (139,273)
*Requires Footnote
</TABLE>
<PAGE>
INCOME STATEMENT
FORM OPR-5
REV 7/92
Case Name: MRS Technology, Inc. Month Ended: August 1998
Case Number: 98-44938-JFQ
<TABLE>
<CAPTION>
MONTH FILING TO
August DATE
<S> <C> <C>
NET REVENUE (INCOME) $ 130,808 $ 472,487
COST OF GOODS SOLD
Materials 33,483 142,817
Labor-Direct 54,125 107,511
Manufacturing Overhead 57,663 167,431
TOTAL COST OF GOODS SOLD LIABILITIES 145,271 415,759
GROSS PROFIT (14,463) 56,728
Selling and Marketing 266 17,731
General and Administrative 108,753 264,684
Other:Research & Development 1,967 18,077
Other (Income)/Expense (4,639) (12,863)
TOTAL OPERATING EXPENSES 106,347 287,629
INCOME BEFORE INTEREST, DEPRECIATION,
TAXES, OR EXTRAORDINARY EXPENSES (120,810) (230,901)
INTEREST EXPENSE 20,070 30,252
DEPRECIATION 14,492 33,492
INCOME TAX EXPENSE (BENEFIT) 0 0
EXTRAORDINARY INCOME (EXPENSE)* 0 0
NET INCOME (LOSS) (155,372) (294,645)
*Requires Footnote
</TABLE>
<PAGE>
STATEMENT OF SOURCES AND USES OF CASH
FORM OPR-6
REV 7/92
Case Name: MRS Technology, Inc. Month Ended: August 1998
Case Number: 98-44938-JFQ
<TABLE>
<CAPTION>
MONTH
JULY
<S> <C>
SOURCES OF CASH
Income (Loss) From Operations (139,273)
Add: Depreciation, Amortization &
Other Non-Cash 19,000
CASH GENERATEED FROM OPERATIONS (120,273)
Add: Decrease in Assets:
Accounts Receivable 0
Inventory 132,515
Prepaid Expenses & Deposits 1,584
Property, Plant & Equipment 0
Other- Uninvoiced Shipments & Other 52,662
Increase in Liabilities
Pre-Petition Liabilities 128,851
Post Petition Liabilities 98,018
TOTAL SOURCES OF CASH (A) $293,357
USES OF CASH
Increase in Assets:
Accounts Receivable $210,105
Inventory
Prepaid Expenses & Deposts 0
Property, Plant & Equipment 0
Other 0
Decrease in Liabilities
Pre-Petition Liabilities 0
Post Petition Liabilities 0
TOTAL USES OF CASH (B) 210,105
NET SOURCE (USE) OF CASH (A-B=NET) 83,252
CASH - BEGINNING BALANCE (See OPR-1) 129,041
CASH - ENDING BALANCE (See OPR-1) 212,290
</TABLE>
[/TABLE]
<PAGE>
STATEMENT OF SOURCES AND USES OF CASH
FORM OPR-6
REV 7/92
Case Name: MRS Technology, Inc. Month Ended: August 1998
Case Number: 98-44938-JFQ
<TABLE>
<CAPTION>
MONTH
August
<S> <C>
SOURCES OF CASH
Income (Loss) From Operations (155,372)
Add: Depreciation, Amortization &
Other Non-Cash 14,492
CASH GENERATEED FROM OPERATIONS (140,880)
Add: Decrease in Assets:
Accounts Receivable 145,781
Inventory 31,526
Prepaid Expenses & Deposits 1,055
Property, Plant & Equipment 0
Other- Uninvoiced Shipments & Other 145
Increase in Liabilities
Pre-Petition Liabilities 72,135
Post Petition Liabilities 0
TOTAL SOURCES OF CASH (A) $109,762
USES OF CASH
Increase in Assets:
Accounts Receivable $ 0
Inventory
Prepaid Expenses & Deposts
Property, Plant & Equipment 0
Other 0
Decrease in Liabilities
Pre-Petition Liabilities 0
Post Petition Liabilities 543
TOTAL USES OF CASH (B) 543
NET SOURCE (USE) OF CASH (A-B=NET) 109,219
CASH - BEGINNING BALANCE (See OPR-1) 212,290
CASH - ENDING BALANCE (See OPR-1) 321,509
</TABLE>
