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): November 3, 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 September
30, 1998 was filed with the Federal Trustee at the U.S. Bankruptcy Court
in Worcester, Massachusetts on November 3, 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 September 30, 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.
November 3, 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 SEPTEMBER,1998
Comes Now, MRS Technology, Inc.
Debtor-In-Possession, and hereby submits its Monthly Operating Report for
the period commencing September 1, 1998 and ending September 30, 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: November 3, 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: September 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 $18,269.25 $15,116.99 Weekly Weekly
Before Before
P.F. DiIanni, CFO $ 9,615.40 $ 7,010.61 Payday Payday
E. DaSilviera, VP $10,096.15 $ 7,373.71 Via ADP Via ADP
TOTAL EXECUTIVE PAYROLL: $37,980.80
</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: September 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 $239,150 $17,040 $ 63,482 $1,837 $321,509
BALANCE
PLUS:
Deposits 121,330 537 0 1,200 123,067
LESS:
Disbursements (142,278) (7,179)(111,603) (991) (262,051)
Other:
Transfers
In (Out) (75,000) 0 75,000 0 0
Foreign Exchange
Impact 564 564
ENDING BOOK
BALANCE $143,202 $10,962 $ 26,879 $2,046 $183,089
* 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: September 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-1
REV 7/92
Case Name: MRS Technology, Inc. Month Ended: September 1998
Case Number: 98-44938-JFQ
<TABLE>
<CAPTION>
MONTH MONTH
ASSETS August September
<S> <C> <C>
CURRENT ASSETS
Cash $ 321,509 $ 183,089
Other negotiable instruments (i.e.
CD's, Treasury Bills, Etc.) 0 0
Accounts Receivable, Net (OPR-3) 266,224 255,533
Less allowance for doubtful accounts (21,045) (21,045)
Inventory, at cost 5,411,849 5,337,618
Prepaid expenses and deposits 130,245 80,179
Investments 0 0
Other: Uninvoiced Ship. 82,960 82,960
TOTAL CURRENT ASSETS $6,191,742 5,918,334
PROPERTY, PLANT AND EQUIPMENT, AT COST 3,906,242 3,891,499
Less Accumulated Depreciation (3,809,060) (3,823,244)
NET PROPERTY, PLANT AND EQUIPMENT 97,182 68,255
+ OTHER ASSETS 28,946 27,493
TOTAL ASSETS $6,317,870 $6,014,082
+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: September 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-2
REV 7/92
Case Name: MRS Technology, Inc. Month Ended: September 1998
Case Number: 98-44938-JFQ
<TABLE>
<CAPTION>
MONTH MONTH
LIABILITIES August September
<S> <C> <C>
POST PETITION LIABILITIES $ 97,475 $ 144,022
Priority Debt/Secured &
Employee Expenses * $ 1,114,668 1,126,257
Unsecured Debt 2,343,878 2,167,669
TOTAL PRE PETITION LIABILITIES 3,458,546 3,293,926
TOTAL LIABILITIES 3,556,021 3,437,948
SHAREHOLDER'S EQUITY (DEFICIT)
Preferred Stock 0 0
Common Stock 68,585 68,588
Paid-In Capital 36,511,205 36,511,202
Retained Earnings
Through Filing Date (33,523,295) (33,523,295)
Post Filing Date (294,646) (480,361)
TOTAL SHAREHOLDERS' EQUITY $ 2,761,849 2,576,134
TOTAL LIABILITIES AND
SHAREHOLDERS' EQUITY $ 6,317,870 6,014,082
* Includes accrued interest and expenses.
</TABLE>
<PAGE>
SUMMARY OF ACCOUNTS RECEIVABLE
FORM OPR-3
REV 7/92
Case Name: MRS Technology, Inc. Month Ended: September 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: September 1998
Allowance for
doubtful accounts $255,532 $120,380 $55,319 $ 5,500 $74,333
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: September 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 1,126,257
POSTPETITION UNSECURED DEBT 0 0
ACCRUED INTEREST PAYABLE 0 0
TRADE ACCOUNTS PAYABLE & OTHER:
(List Separately*)
See attached sheet $144,022
Totals $144,022
*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: September 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>
9/21/98 $ 105.00 A&French Packaging
9/14/98 $ 12,353.96 Altid Enterprises
9/14/98 $ 12,353.96 Altid Enterprises
9/14/98 $ 12,353.96 Altid Enterprises
8/31/98 $ 303.00 Alpine Precision
9/16/98 $ 2,547.00 Alpine Precision
9/22/98 $ 886.92 AT&T Credit
9/10/98 $ 22.91 Bell Atlantic
8/31/98 $ 317.88 Browning-Ferris Industries
9/10/98 $ 99.76 B.L. Makepiece
9/15/98 $ 710.99 First National Bank of Boston
9/23/98 $ 32.00 Bain Pest Control
9/15/98 $ 12.40 Corporate Investor
9/21/98 $ 22,726.10 Cohn & Kelakos
9/24/98 $ 60.83 Congress Alarm
9/09/98 $ 387.98 Corporate Express
9/11/98 $ 760.00 Center for Precision
9/17/98 $ 50.00 The Depository Trust
9/22/98 $ 30.92 Electronic Fastners
9/26/98 $ 1,519.16 Tom Guimond
9/19/98 $ 96.73 Joe Halberg
9/10/98 $ 3,422.13 HBS&R Client Trust
9/14/98 $ 3,410.00 ILC
9/26/98 $ 127.89 Jack Steele
8/31/98 $ 53.47 Lowell Janitorial
9/22/98 $ 141.75 William M. Mercer
9/30/98 $ 3,172.50 Harold Swallow
9/21/98 $ 398.26 UNUM
8/31/98 $ 806.55 Whatman
8/27/98 $ 498.75 Xerox
9/05/98 $ 63.23 Xerox
9/08/98 $ 170.00 Xerox
ACCRUALS:
7/31/98 $ 5,985.00 Vacation
7/31/98 $ 49,500.00 Legal
7/31/98 $ 15,000.00 Audit
7/31/98 $ 6,000.00 Commissions
$144,022.03
</TABLE>
<PAGE>
INCOME STATEMENT
FORM OPR-5
REV 7/92
Case Name: MRS Technology, Inc. Month Ended: September 1998
Case Number: 98-44938-JFQ
<TABLE>
<CAPTION>
MONTH MONTH
July August
<S> <C> <C>
NET REVENUE (INCOME) $ 341,679 $ 130,808
COST OF GOODS SOLD
Materials 107,334 33,483
Labor-Direct 53,386 54,125
Manufacturing Overhead 109,768 57,663
TOTAL COST OF GOODS SOLD LIABILITIES 270,488 145,271
GROSS PROFIT 71,191 (14,463)
Selling and Marketing 17,465 266
General and Administrative 155,931 108,753
Other:Research & Development 16,110 1,967
Other (Income)/Expense (8,224) (4,639)
TOTAL OPERATING EXPENSES 181,282 106,347
INCOME BEFORE INTEREST, DEPRECIATION,
TAXES, OR EXTRAORDINARY EXPENSES (110,091) (120,810)
INTEREST EXPENSE 10,182 20,070
DEPRECIATION 19,000 14,492
INCOME TAX EXPENSE (BENEFIT) 0 0
EXTRAORDINARY INCOME (EXPENSE)* 0 0
NET INCOME (LOSS) (139,273) (155,372)
*Requires Footnote
</TABLE>
<PAGE>
INCOME STATEMENT
FORM OPR-5
REV 7/92
Case Name: MRS Technology, Inc. Month Ended: September 1998
Case Number: 98-44938-JFQ
<TABLE>
<CAPTION>
MONTH FILING TO
September DATE
<S> <C> <C>
NET REVENUE (INCOME) $ 131,101 $ 603,588
COST OF GOODS SOLD
Materials 6,944 147,761
Labor-Direct 62,351 169,862
Manufacturing Overhead 188,710 356,141
TOTAL COST OF GOODS SOLD LIABILITIES 258,005 673,764
GROSS PROFIT (126,904) (70,176)
Selling and Marketing (5,472) 12,259
General and Administrative 119,766 384,450
Other:Research & Development (57,905) 75,982
Other (Income)/Expense (136,142) (149,005)
TOTAL OPERATING EXPENSES 36,057 323,686
INCOME BEFORE INTEREST, DEPRECIATION,
TAXES, OR EXTRAORDINARY EXPENSES (162,961) (393,862)
INTEREST EXPENSE 10,012 40,264
DEPRECIATION 12,743 46,235
INCOME TAX EXPENSE (BENEFIT) 0 0
EXTRAORDINARY INCOME (EXPENSE)* 0 0
NET INCOME (LOSS) (185,716) (480,361)
*Requires Footnote
</TABLE>
<PAGE>
STATEMENT OF SOURCES AND USES OF CASH
FORM OPR-6
REV 7/92
Case Name: MRS Technology, Inc. Month Ended: September 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>
<PAGE>
STATEMENT OF SOURCES AND USES OF CASH
FORM OPR-6
REV 7/92
Case Name: MRS Technology, Inc. Month Ended: September 1998
Case Number: 98-44938-JFQ
<TABLE>
<CAPTION>
MONTH MONTH
August September
<S> <C> <C>
SOURCES OF CASH
Income (Loss) From Operations (155,372) $(185,716)
Add: Depreciation, Amortization &
Other Non-Cash 14,492 14,184
CASH GENERATEED FROM OPERATIONS (140,880) (171,532)
Add: Decrease in Assets:
Accounts Receivable 145,781 10,691
Inventory 31,526 74,100
Prepaid Expenses & Deposits 1,055 50,066
Property, Plant & Equipment 0 0
Other- Uninvoiced Shipments & Other 145 0
Increase in Liabilities
Pre-Petition Liabilities 72,135 0
Post Petition Liabilities 0 46,547
TOTAL SOURCES OF CASH (A) $109,762 9,872
USES OF CASH
Increase in Assets:
Accounts Receivable $ 0 0
Inventory
Prepaid Expenses & Deposts
Property, Plant & Equipment 0 0
Other 0 0
Decrease in Liabilities
Pre-Petition Liabilities 0 (262,093)
Post Petition Liabilities 543 0
TOTAL USES OF CASH (B) 543 (262,093)
NET SOURCE (USE) OF CASH (A-B=NET) 109,219 271,965
CASH - BEGINNING BALANCE (See OPR-1) 212,290 321,509
CASH - ENDING BALANCE (See OPR-1) 321,509 183,089
</TABLE>
