<PAGE>
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): March 19, 1999
--------------------
BROTHERS GOURMET COFFEES, INC.
- -------------------------------------------------------------------------------
(Exact Name of Registrant as Specified in Charter)
Delaware 0-23024 52-1681708
- -------------------------------------------------------------------------------
(State or Other Juris- (Commission File (IRS Employer
diction of Incorporation) Number) Identification No.)
2255 Glades Road
Suite 100E
Boca Raton, Florida 33431
- -------------------------------------------------------------------------------
(Address of Principal (Zip Code)
Executive Offices)
(561) 995-2600
- -------------------------------------------------------------------------------
(Registrant's Telephone Number, Including Area Code)
Not Applicable
- -------------------------------------------------------------------------------
(Former Name or Former Address, if Changed Since Last Report)
<PAGE>
ITEM 5. OTHER EVENTS
On October 15, 1998, the Registrant filed a request with the Securities and
Exchange Commission (the "Commission") seeking confirmation from the Staff
that it would not recommend any enforcement action to the Commission if, in
lieu of filing the quarterly and annual reports on Forms 10-Q and 10-K,
respectively, that the Registrant would otherwise be required to file while
it is in reorganization proceedings pursuant to Chapter 11 of the Bankruptcy
Code, the Registrant implements modified reporting procedures. Such modified
reporting procedures consist of filing each of the Registrant's Monthly
Operating Reports under cover of Form 8-K within 15 days after such Monthly
Operating Report is due to be filed with the Bankruptcy Court and U.S.
Trustee's Office. The Commission has not yet issued its decision on the
Registrant's request; however, pending such decision, the Registrant is
implementing the proposed modified reporting procedures. Accordingly, the
Registrant's Monthly Operating Report, presenting certain financial
information of the Registrant and its subsidiaries for the period ended
February 19, 1999, is attached hereto as Exhibit 99.1 and is incorporated
herein by reference. The attached Monthly Operating Report was filed with
the Bankruptcy Court and the U.S. Trustee's Office on March 19, 1999.
ITEM 7. FINANCIAL STATEMENTS AND EXHIBITS
(c) Exhibits
99.1 Copy of the Registrant's Monthly Operating Report, for the period
ended February 19, 1999, filed with the Bankruptcy Court and U.S.
Trustee's Office on March 19, 1999.
<PAGE>
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934,
Registrant has duly caused this report to be signed on its behalf by the
undersigned hereunto duly authorized.
BROTHERS GOURMET COFFEES, INC.
(Registrant)
/s/ Barry Bilmes
-------------------------
Date: April 2, 1999 By: Barry Bilmes
Title: Vice President Finance
and Administration
<PAGE>
DEBTOR: BROTHERS GOURMET COFFEES, INC. AND ACCRUAL BASIS-1
AFFILIATED DEBTORS
CASE NO.: 98-1970, 98-1971, 98-1973, 98-1974
OFFICE OF THE UNITED STATES TRUSTEE - REGION 3
MONTHLY OPERATING REPORT
FOR THE MONTH ENDING FEBRUARY 19, 1999
<TABLE>
<CAPTION>
Document Previously Explanation
Required attachments Attached Submitted Attached
<S> <C> <C> <C>
1. Tax Receipts ( ) ( ) (X)
2. Bank Statements (X) ( ) ( )
3. Most recently filed ( ) (X) ( )
Income Tax Return
4. Most recent Annual Financial ( ) (X) ( )
Statements prepared by accountant
</TABLE>
IN ACCORDANCE WITH TITLE 28, SECTION 1746, OF THE UNITED STATES CODE, I
DECLARE UNDER PENALTY OF PERJURY THAT I HAVE EXAMINED THE FOLLOWING MONTHLY
OPERATING REPORT (ACCRUAL BASIS-1 THROUGH ACCRUAL BASIS-9) AND THE
ACCOMPANYING ATTACHMENTS AND, TO THE BEST OF MY KNOWLEDGE, THESE DOCUMENTS
ARE TRUE, CORRECT AND COMPLETE. DECLARATION OF THE PREPARER (OTHER THAN
RESPONSIBLE PARTY) IS BASED ON ALL INFORMATION OF WHICH PREPARER HAS ANY
KNOWLEDGE.
INFORMATION OF WHICH PREPARER HAS ANY KNOWLEDGE.
RESPONSIBLE PARTY:
Vice President Finance
/s/ Barry Bilmes and Administration
- --------------------------------------- -----------------------------------
ORIGINAL SIGNATURE OF RESPONSIBLE PARTY TITLE
BARRY BILMES 3/19/99
- --------------------------------------- -----------------------------------
PRINTED NAME OF RESPONSIBLE PARTY DATE
PREPARER:
- --------------------------------------- -----------------------------------
ORIGINAL SIGNATURE OF PREPARER TITLE
- --------------------------------------- -----------------------------------
PRINTED NAME OF PREPARER DATE
All Chapter 11 debtors must file this report with the Court and serve a copy
on the United States Trustee.
<PAGE>
DEBTOR: BROTHERS GOURMET COFFEES, INC. AND ACCRUAL BASIS-2
AFFILIATED DEBTORS
COMPARATIVE BALANCE SHEET
CASE NO.: 98-1970, 98-1971, 98-1973, 98-1974 FIRST QUARTER
<TABLE>
<CAPTION>
ASSETS - SEE EXHIBIT 1 MONTH MONTH MONTH
<S> <C> <C> <C>
1. CASH
2. ACCOUNTS RECEIVABLE
3. INVENTORY
4. NOTES RECEIVABLE
5. PREPAID EXPENSES
6. OTHER (ATTACH LIST)
7. TOTAL CURRENT ASSETS
8. PROPERTY, PLANT & EQUIPMENT
9. LESS ACCUMULATED
DEPRECIATION/DEPLETION
10. NET PROPERTY, PLANT &
EQUIPMENT
11. DUE FROM AFFILIATES & INSIDERS
12. INTANGIBLES (ATTACH LIST)
13. OTHER (ATTACH LIST)
14. TOTAL ASSETS
POSTPETITION LIABILITIES
15. ACCOUNTS PAYABLE
16. TAXES PAYABLE
17. NOTES PAYABLE
18. PROFESSIONAL FEES
19. SECURED DEBT
20. DUE TO AFFILIATES & INSIDERS
21. OTHER (ATTACH LIST)
22. TOTAL POSTPETITION
LIABILITIES
PREPETITION LIABILITIES
23. SECURED DEBT
24. PRIORITY DEBT
25. UNSECURED DEBT
26. OTHER (ATTACH LIST)
27. TOTAL PREPETITION LIABILITIES
28. TOTAL LIABILITIES
EQUITY
29. PREPETITION OWNERS' EQUITY
30. POSTPETITION CUMULATIVE
PROFIT OR (LOSS)
31. TOTAL EQUITY (DEFECIT)
32. TOTAL LIABILITIES &
OWNERS' EQUITY
</TABLE>
<PAGE>
DEBTOR: BROTHERS GOURMET COFFEES, INC. AND ACCRUAL BASIS-3
AFFILIATED DEBTORS
INCOME STATEMENT
CASE NO.: 98-1970, 98-1971, 98-1973, 98-1974 FIRST QUARTER
<TABLE>
<CAPTION>
REVENUES - SEE EXHIBIT 2 MONTH MONTH MONTH
<S> <C> <C> <C>
1. GROSS REVENUES
2. LESS: RETURNS & DISCOUNTS
3. NET REVENUE
COST OF GOODS SOLD
4. BEGINNING INVENTORY
5. ADD: PURCHASES
6. LESS: ENDING INVENTORY
7. TOTAL COST OF GOODS SOLD
8. GROSS PROFIT
OPERATING EXPENSES
9. OFFICER/INSIDER COMPENSATION
10. DIRECT LABOR/SALARIES
11. PAYROLL TAXES
12. RENT & LEASE EXPENSE
13. INSURANCE
14. DEPRECIATION/DEPLETION/AMORTIZATION
15. GENERAL & ADMINISTRATIVE
16. OTHER (ATTACH LIST)
17. TOTAL OPERATING EXPENSE
18. OPERATING INCOME
OTHER INCOME & EXPENSES
19. OTHER INCOME (ATTACH LIST)
20. OTHER EXPENSES (ATTACH LIST)
21. INTEREST EXPENSE
22. OTHER (ATTACH LIST)
23. NET OTHER INCOME & EXPENSES
REORGANIZATION EXPENSES
24. PROFESSIONAL FEES
25. U.S. TRUSTEE FEES
26. OTHER (ATTACH LIST)
27. TOTAL REORGANIZATION EXPENSES
28. INCOME TAX
29. NET PROFIT (LOSS)
</TABLE>
<PAGE>
DEBTOR: BROTHERS GOURMET COFFEES, INC. AND ACCRUAL BASIS-4
AFFILIATED DEBTORS
BANK:
CASE NO.: 98-1970, 98-1971, 98-1973, 98-1974 ACCOUNT NO.:
ACCOUNT TYPE:
<TABLE>
<CAPTION>
CASH RECEIPTS AND MONTH MONTH MONTH
DISBURSEMENTS - SEE EXHIBIT 3
<S> <C> <C> <C>
1. CASH-BEGINNING OF MONTH
RECEIPTS
2. CASH SALES
3. COLLECTION OF ACCOUNTS RECEIVABLE
4. LOANS & ADVANCES (ATTACH LIST)
5. SALE OF ASSETS
6. OTHER (ATTACH LIST)
7. TOTAL RECEIPTS
8. TOTAL CASH AVAILABLE
</TABLE>
CURRENT MONTH DISBURSEMENTS
<TABLE>
<CAPTION>
CHECK
NUMBER DATE PAYEE PURPOSE AMOUNT
<S> <C> <C> <C> <C>
TOTAL DISBURSEMENTS FROM BANK ACCOUNT
END OF MONTH BALANCE (SHOULD EQUAL ACCRUAL BASIS-6, LINE 5)
</TABLE>
<PAGE>
DEBTOR: BROTHERS GOURMET COFFEES, INC. AND ACCRUAL BASIS-5
AFFILIATED DEBTORS
CASE NO.: 98-1970, 98-1971, 98-1973, 98-1974
ACCOUNTS RECEIVABLE AGING - SEE EXHIBIT 4
<TABLE>
<S> <C>
0 - 30 days old
31 - 60 days old
61 - 90 days old
91+ days old
TOTAL ACCOUNTS RECEIVABLE
AMOUNTS CONSIDERED UNCOLLECTIBLE
ACCOUNTS RECEIVABLE (NET)
</TABLE>
AGING OF POST PETITION TAXES AND PAYABLES - SEE EXHIBIT 5
<TABLE>
<CAPTION>
0-30 31-60 61-90 91+
DAYS DAYS DAYS DAYS TOTAL
<S> <C> <C> <C> <C> <C>
ACCOUNTS PAYABLE
</TABLE>
STATUS OF POST PETITION TAXES - SEE EXHIBIT 6
<TABLE>
<CAPTION>
BEGINNING WITHHELD ENDING
TAX AND/OR AMOUNT TAX DELINQUENT
LIABILITY* ACCRUED PAID LIABILITY TAXES
<S> <C> <C> <C> <C> <C>
FEDERAL
WITHHOLDING**
FICA-EMPLOYEE**
FICA-EMPLOYER**
UNEMPLOYMENT
INCOME
OTHER (ATTACH LIST)
TOTAL FEDERAL TAXES
STATE AND LOCAL
WITHHOLDING
SALES
EXCISE
UNEMPLOYMENT
REAL PROPERTY
PERSONAL PROPERTY
OTHER (ATTACH LIST)
TOTAL STATE AND LOCAL
TOTAL TAXES
</TABLE>
* The beginning tax liability should represent the liability from the prior
month or, if this is the first operating report, the amount should be zero.
** Attach photocopies of IRS Form 6123 or your FTD coupon and payment
receipt to verify payment of deposit.
<PAGE>
DEBTOR: BROTHERS GOURMET COFFEES, INC. AND ACCRUAL BASIS-6
AFFILIATED DEBTORS
CASE NO.: 98-1970, 98-1971, 98-1973, 98-1974
THE DEBTOR IN POSSESSION MUST COMPLETE THE RECONCILIATION BELOW FOR EACH BANK
ACCOUNT, INCLUDING ALL GENERAL, PAYROLL AND TAX ACCOUNTS, AS WELL AS ALL
SAVINGS AND INVESTMENT ACCOUNTS, MONEY MARKET ACCOUNTS, CERTIFICATES OF
DEPOSIT, GOVERNMENT OBLIGATIONS, ETC. ACCOUNTS WITH RESTRICTED FUNDS SHOULD
BE IDENTIFIED BY PLACING AN ASTERISK NEXT TO THE ACCOUNT NUMBER. ATTACH
ADDITIONAL SHEETS IF NECESSARY.
<TABLE>
<CAPTION>
MONTH:
BANK RECONCILIATION - SEE EXHIBIT 7
ACCOUNT #1 ACCOUNT #2 ACCOUNT #3 TOTAL
<S> <C> <C> <C> <C>
A. BANK:
B. ACCOUNT NUMBER: TOTAL
C. PURPOSE (TYPE):
1. BALANCE PER BANK STATEMENT
2. ADD: TOTAL DEPOSITS NOT CREDITED
3. SUBTRACT: OUTSTANDING CHECKS
4. OTHER RECONCILING ITEMS (ATTACH LIST)
5. MONTH END BALANCE PER BOOKS
6. NUMBER OF LAST CHECK WRITTEN
</TABLE>
<TABLE>
<CAPTION>
INVESTMENT ACCOUNTS
DATE OF TYPE OF PURCHASE CURRENT
BANK ACCOUNT NAME & NUMBER PURCHASE INSTRUMENT PRICE VALUE
<S> <C> <C> <C> <C>
7.
8.
9.
10.
11. TOTAL INVESTMENTS
</TABLE>
<TABLE>
<CAPTION>
CASH
<S> <C>
12. CURRENCY ON HAND
13. TOTAL CASH-END OF MONTH (Total of lines 5, 11, & 12)
</TABLE>
<PAGE>
DEBTOR: BROTHERS GOURMET COFFEES, INC. AND ACCRUAL BASIS-7
AFFILIATED DEBTORS
CASE NO.: 98-1970, 98-1971, 98-1973, 98-1974
- -------------------------------------------------------------------------------
PAYMENTS TO INSIDERS AND PROFESSIONALS
- -------------------------------------------------------------------------------
OF THE TOTAL DISBURSEMENTS SHOWN FOR THE MONTH, LIST THE AMOUNT PAID TO
INSIDERS (AS DEFINED IN SECTION 101(31)(A)-(F) OF THE U.S. BANKRUPTCY CODE)
AND TO PROFESSIONALS. ALSO, FOR PAYMENTS TO INSIDERS, IDENTIFY THE TYPE OF
COMPENSATION PAID (e.g. SALARY, BONUS, COMMISSIONS, INSURANCE, HOUSING
ALLOWANCE TRAVEL, CAR ALLOWANCE, ETC.). ATTACH ADDITIONAL SHEETS IF NECESSARY.
<TABLE>
<CAPTION>
INSIDERS - SEE EXHIBIT 8
CUMULATIVE
TYPE OF AMOUNT UNPAID
NAME POSITION PAYMENT PAID BALANCE
<S> <C> <C> <C> <C>
1.
2.
3.
4.
5.
6. TOTAL PAYMENTS TO INSIDERS
</TABLE>
<TABLE>
<CAPTION>
PROFESSIONALS - SEE EXHIBIT 9
TYPE DATE OF COURT
OF ORDER AUTHORIZING AMOUNT AMOUNT TOTAL PAID
NAME PROFESSIONAL PAYMENT APPROVED PAID TO DATE
<S> <C> <C> <C> <C> <C>
1.
2.
3.
4.
5.
6. TOTAL PAYMENTS TO PROFESSIONALS
</TABLE>
<TABLE>
<CAPTION>
ADEQUATE PROTECTION PAYMENTS
SCHEDULED AMOUNTS
MONTHLY PAID TOTAL
PAYMENTS DURING UNPAID
NAME OF CREDITOR DUE MONTH POSTPETITION
<S> <C> <C> <C>
THE DEBTOR MADE NO ADEQUATE PROTECTION
PAYMENTS IN FEBRUARY 1999.
</TABLE>
<PAGE>
DEBTOR: BROTHERS GOURMET COFFEES, INC. AND ACCRUAL BASIS-8
AFFILIATED DEBTORS
CASE NO.: 98-1970, 98-1971, 98-1973, 98-1974
<TABLE>
<CAPTION>
QUESTIONNAIRE
YES NO
<S> <C> <C>
1. HAVE ANY ASSETS BEEN SOLD OR TRANSFERRED OUTSIDE THE NORMAL
COURSE OF BUSINESS THIS REPORTING PERIOD? X
2. HAVE ANY FUNDS BEEN DISBURSED FROM ANY ACCOUNT OTHER THAN A
DEBTOR IN POSSESSION ACCOUNT? X
3. ARE ANY POSTPETITION RECEIVABLES (ACCOUNTS, NOTES, OR LOANS) DUE FROM RELATED PARTIES? X
4. HAVE ANY PAYMENTS BEEN MADE ON PREPETITION LIABILITIES THIS REPORTING PERIOD? X (a)
5. HAVE ANY POSTPETITION LOANS BEEN RECEIVED BY THE DEBTOR FROM ANY PARTY? X (b)
6. ARE ANY POSTPETITION PAYROLL TAXES PAST DUE? X
7. ARE ANY POSTPETITION STATE OR FEDERAL INCOME TAXES PAST DUE? X
8. ARE ANY POSTPETITION REAL ESTATE TAXES PAST DUE? X
9. ARE ANY OTHER POSTPETITION TAXES PAST DUE? X
10. ARE ANY AMOUNTS OWED TO POSTPETITION CREDITORS DELINQUENT? X
11. HAVE ANY PREPETITION TAXES BEEN PAID DURING THE REPORTING PERIOD? X (c)
12. ARE ANY WAGE PAYMENTS PAST DUE? X
</TABLE>
IF THE ANSWER TO ANY OF THE ABOVE QUESTIONS IS "YES," PROVIDE A DETAILED
EXPLANATION OF EACH ITEM. ATTACH ADDITIONAL SHEETS IF NECESSARY.
(a) The Debtors are authorized to pay certain pre-petition liabilities under
"First Day" Orders. Only pre-petition payments so authorized have been made
and reported in accordance with such orders.
(b) Loans received in accordance with Debtor-In-Possession Financing Agreement.
Approved by the Court.
(c) Various de minimus pre-petition business license and franchise fees paid.
Such license and franchise fees were necessary to continue to conduct
business in certain jurisdictions
<TABLE>
<CAPTION>
INSURANCE YES NO
<S> <C> <C>
1. ARE WORKERS COMPENSATION, GENERAL LIABILITY AND OTHER
NECESSARY INSURANCE COVERAGES IN EFFECT? X
2. ARE ALL PREMIUM PAYMENTS PAID CURRENT? X
3. PLEASE ITEMIZE POLICIES BELOW.
</TABLE>
IF THE ANSWER TO ANY OF THE ABOVE QUESTIONS IS "NO," OR IF ANY POLICIES HAVE
BEEN CANCELLED OR NOT RENEWED DURING THIS REPORTING PERIOD, PROVIDE AN
EXPLANATION BELOW. ATTACH ADDITIONAL SHEETS IF NECESSARY.
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
INSURANCE POLICIES - SEE EXHIBIT 10
TYPE OF PAYMENT AMOUNT
POLICY CARRIER PERIOD COVERED & FREQUENCY
<S> <C> <C> <C>
</TABLE>
<PAGE>
DEBTOR: BROTHERS GOURMET COFFEES, INC. AND ACCRUAL BASIS-9
AFFILIATED DEBTORS
Case No.: 98-1970, 98-1971, 98-1973, 98-1974
<TABLE>
<CAPTION>
PERSONNEL
FULL/PART TIME
<S> <C>
1. Total number of employees at beginning of period 223
2. Number of employees hired during the period 5
3. Number of employees terminated or resigned during the period 6
4. Total number of employees on payroll at end of period 222
</TABLE>
CHANGE OF ADDRESS
If your mailing address has changed and you have not previously notified the
United States Trustee of the change, list your new address below:
DATE OF CHANGE:__________________________
NEW ADDRESS:
<PAGE>
BROTHERS GOURMET COFFEES, INC. AND AFFILIATED DEBTORS
CONSOLIDATED BALANCE SHEET - UNAUDITED
AS OF FEBRUARY 19, 1999
($000's)
<TABLE>
<S> <C>
Current Assets:
Petty cash $ 2
Cash in bank 1,303
Accounts receivable 4,901
Inventories 4,745
Prepaid expenses and other assets 224
---------
Current assets 11,175
Plant and Equipment, net 11,482
Other Assets:
Debt acquisition costs 1,096
Prepaid promotional expenses 2,235
Other assets 502
---------
Total assets $ 26,490
---------
---------
Current Liabilities:
Accounts payable (post-petition) $ 511
Accrued expenses (post-petition) 3,209
Term loan note 15,493
Revolving loan 753
---------
Current liabilities 19,966
Long Term Liabilities:
Long-term debt (pre-petition) 12,319
Liabilities Subject to Compromise:
Current maturities of long term debt and capital lease (pre-petition) 13
Accounts payable (pre-petition) 5,905
Accrued expenses (pre-petition) 1,583
Accrued loss on future purchase commitments (pre-petition) 154
Allowance for operating losses of discontinued segment (pre-petition) 1,919
---------
Liabilities subject to compromise 9,574
Minority interests 50
Shareholders' Equity:
Common stock 1
Additional paid-in capital 151,693
Accumulated deficit in earnings (166,663)
Treasury stock (450)
---------
Total Shareholders' Equity (15,419)
---------
Total Liabilities and Shareholders' Equity $ 26,490
---------
---------
</TABLE>
Exhibit 1
<PAGE>
BROTHERS GOURMET COFFEES, INC. AND AFFILIATED DEBTORS
CONSOLIDATED INCOME STATEMENT - UNAUDITED
FOR THE MONTH ENDED FEBRUARY 19, 1999
($000's)
<TABLE>
<S> <C>
Sales $ 3,892
Cost of goods sold 2,208
-------
Gross profit 1,684
Operating expenses
Customer 504
Sales 181
Distribution 376
Marketing 99
General administrative 805
MIS administrative 78
-------
Total operating expenses 2,043
Operating income (loss) (359)
Interest expense 151
Debt acquisition and restructuring costs -
Other (income) expense -
Purchase commitment (gains) losses (52)
-------
Net income (loss) $ (458)
-------
-------
</TABLE>
Exhibit 2
<PAGE>
BROTHERS GOURMET COFFEES, INC. AND AFFILIATED DEBTORS
POST-PETITION CASH RECEIPTS AND DISBURSEMENTS
FOR THE MONTH ENDED FEBRUARY 19, 1999
($000's)
<TABLE>
<CAPTION>
1/23/99
2/19/99
-------
<S> <C>
RECEIPTS:
Lockbox $ 4,110
Credit Card 1
Other 27
-------
4,138
DISBURSEMENTS:
Green Coffee 1,350
Packaging & Flavoring 460
Payroll & Benefits 724
Plant Overhead 92
Customer Expenses 401
Distribution Costs 225
Sales Costs 32
Marketing 35
Management Info. Systems 13
Administrative 119
Professional Fees 1
Interest Expense & Bank Fees 153 (a)
Slotting Fees 1
Capital Expenditures 73
Other 1
-------
Total Disbursements 3,680
Net Cash Flow Prior to Goldman Activity 458
Cash to Goldman (3,820)
Cash from Goldman 4,203
-------
Net Cash Flow 841
Beginning Cash (194)
-------
Ending Cash Before Float 647
Outstanding Check Float 613
-------
Cash Ledger Balance per Bank $ 1,260
-------
-------
GOLDMAN DIP:
Beginning Balance $ 370
Drawdowns 4,203
Paybacks (3,820)
-------
Ending Balance $ 753
-------
-------
</TABLE>
NOTES:
(a) $85,967 of interest paid during the week of 1/23 through 1/29 was
retroactively charged by Goldman Sachs Credit Partners to the week of 1/16
through 1/22.
Exhibit 3
<PAGE>
BROTHERS GOURMET COFFEES, INC. AND AFFILIATED DEBTORS
AGING OF ACCOUNTS RECEIVABLE
AS OF FEBRUARY 19, 1999
($000's)
<TABLE>
<CAPTION>
Past Due Allowance for
------------------------------------------- Total Accounts Returns and Bad Net Accounts
0 - 30 Days 30 - 60 Days 60 - 90 Days Over 90 (a) Receivable Debts Receivable
- ----------- ------------ ------------ ----------- -------------- --------------- ------------
<S> <C> <C> <C> <C> <C> <C>
$ 3,669 $ 621 $ 197 $ 846 $ 5,333 $ (432) $ 4,901
</TABLE>
NOTES:
(a) The Debtor has subsequently collected approximately $129 of this past-due
amount.
Exhibit 4
<PAGE>
AS OF FEBRUARY 19, 1999
BROTHERS GOURMET COFFEES, INC. AND AFFILIATED DEBTORS
AGING OF ACCOUNTS PAYABLE
AS OF FEBRUARY 19, 1999
($ 000's)
<TABLE>
<CAPTION>
Total
Accounts
0-30 Days 31-60 Days 61-90 Days 91+ Days Payable
- --------- ---------- ---------- -------- -------
<S> <C> <C> <C> <C>
$ (539) $ 11 $ 99 $ 309 $ (121) (a)
Outstanding Checks, Chase Account No. 312-7934031-66 599
Outstanding Checks, FUNB Account No. 2079900003505 33
------
Total Accounts Payable $ 511
------
------
</TABLE>
NOTES:
(a) Post-petition accounts payable debit balance results from prepayments for
inventory/materials not yet received.
Exhibit 5
<PAGE>
BROTHERS GOURMET COFFEES, INC. AND AFFILIATED DEBTORS
STATUS OF POST-PETITION TAXES
AS OF FEBRUARY 19, 1999
($000's)
<TABLE>
<CAPTION>
Beginning Amount Withheld Amount Ending Tax Delinquent
Tax Liabiliy Or Accrued Paid Liability Taxes
------------ --------------- ------ ---------- ----------
<S> <C> <C> <C> <C> <C>
FEDERAL
Withholding (a) $ 38.4 $ 36.5 $ 38.5 $ 36.4 $ -
Unemployment (a) 1.0 0.5 0.9 0.6 -
---------------------------------------------------------------------------
TOTAL FEDERAL 39.4 37.0 39.4 37.0 -
STATE
Withholding (a) 2.1 0.9 0.9 2.0 -
Unemployment (a) 2.1 2.1 3.0 1.1 -
Income 3.1 - - 3.1 -
Property 137.8 29.7 42.9 124.6 -
Sales 67.2 11.3 5.7 72.8 -
Franchise (b) 97.7 12.0 (5.9) 115.7 -
---------------------------------------------------------------------------
TOTAL STATE AND LOCAL 310.0 56.0 46.6 319.3 -
---------------------------------------------------------------------------
TOTAL TAXES $ 349.4 $ 93.0 $ 86.0 $ 356.3 $ -
---------------------------------------------------------------------------
---------------------------------------------------------------------------
</TABLE>
NOTES:
(a) The Debtors are authorized to pay certain pre-petition employee
related taxes under "First Day" orders.
(b) Various de minimus pre-petition business license and franchise fees
paid. Such license and franchise fees were necessary to continue to
conduct business in certain jurisdictions.
Exhibit 6
<PAGE>
BROTHERS GOURMET COFFEES, INC. AND AFFILIATED DEBTORS
BANK RECONCILIATION
AS OF FEBRUARY 19, 1999
($000's)
<TABLE>
<CAPTION>
ACCOUNT #1 ACCOUNT #2 ACCOUNT # 3 ACCOUNT #4 ACCOUNT #5
- ------------------------------------------------------------------------------------------------------------------------------------
A. BANK: FUNB CHASE CHASE FUNB FUNB
B. ACCOUNT NUMBER: 2000000482626 312-7934031-66 2079900003505 2155300194336
C. PURPOSE (TYPE): DEPOSITORY DEPOSITORY CHECKING CHECKING PAYROLL
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
1. BALANCE PER BANK STATEMENT $ 98.1 $469.1 $ 645.7 $ 82.4 $ 72.8
2. ADD: TOTAL DEPOSITS NOT CREDITED 0.0 0.0 0.0 0.0 0.0
3. SUBTRACT: OUTSTANDING CHECKS 0.0 0.0 (599.1) (33.1) (72.5)
4. OTHER RECONCILING ITEMS (9.5) (9.3) 20.2 0.0 0.2
5. MONTH END BALANCE PER BOOKS $ 88.6 $459.8 $ 66.8 $ 49.3 $ 0.5
6. NUMBER OF LAST CHECK WRITTEN
<CAPTION>
ACCOUNT #6 ACCOUNT #7 ACCOUNT #8
- ---------------------------------------------------------------------------------------------------------------
A. BANK: FUNB FUNB FUNB
B. ACCOUNT NUMBER: 2090000011463 2090000011450 2090000802410 TOTAL
C. PURPOSE (TYPE): DEPOSITORY DEPOSITORY CHECKING
- ---------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
1. BALANCE PER BANK STATEMENT $ 1.4 $ 1.4 $ 3.3 $1,374.2
2. ADD: TOTAL DEPOSITS NOT CREDITED 0.0 0.0 2.5 2.5
3. SUBTRACT: OUTSTANDING CHECKS 0.0 0.0 (0.7) (705.4)
4. OTHER RECONCILING ITEMS 0.0 0.0 (2.5) (0.9)
5. MONTH END BALANCE PER BOOKS $ 1.4 $ 1.4 $ 2.6 $ 670.4
6. NUMBER OF LAST CHECK WRITTEN
Outstanding Checks, Chase 312-7934031-66 599.1
Outstanding Checks, FUNB 2079900003505 33.1
Month End Balance Per Books $1,302.6
</TABLE>
NOTES:
FUNB - First Union National Bank
Exhibit 7
<PAGE>
BROTHERS GOURMET COFFEES, INC. AND AFFILIATED DEBTORS
DISTRIBUTIONS TO INSIDERS
FEBRUARY 1999
<TABLE>
<CAPTION>
Director's Other Total
Salary (a) Fees Bonus Severance Expense (b) Auto 401(K) Payments
---------- ---------- ----- --------- ----------- ---- ------ --------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
Directors:
Aburdene, Elias $ - $ - $ - $ - $ - $ - $ -
Bolduc, J.P. - - - - - - -
Moore, James - - - - - - -
Rudy, Ray - - - - - - - -
Officers:
Breen, Donald 19,403 - - - 4,186 - 192 23,781
Bilmes, Barry 9,755 - - - - - 144 9,899
Pennington, Linda 8,151 - - - - - - 8,151
Davis, Eric 7,055 - - - - - 87 7,142
Schoonover, Randy 54 - - - - - - 54
-------- --- ---- ---- ------- --- ----- --------
$ 44,418 $ - $ - $ - $ 4,186 $ - $ 423 $ 49,027
-------- --- ---- ---- ------- --- ----- --------
-------- --- ---- ---- ------- --- ----- --------
</TABLE>
NOTES:
(a) Includes employer payments for medical, dental, basic life insurance
premiums, accidental death and dismemberment and basic long-term disability.
(b) Meals, travel expenses, etc.
Exhibit 8
<PAGE>
BROTHERS GOURMET COFFEES, INC. AND AFFILIATED DEBTORS
PAYMENTS TO PROFESSIONALS (a)(b)
FEBRUARY 1999
<TABLE>
<CAPTION>
Name Total
<S> <C>
------
$ -
------
------
</TABLE>
NOTES:
(a) Payments for post-petition fees and expenses in accordance with the
Interim Compensation Order.
(b) No payments were made to professionals during the fiscal month
of February.
Exhibit 9
<PAGE>
<TABLE>
<CAPTION>
Type of Policy Term Carrier Annual Premium Frequency
-------------- ---- ------- -------------- ---------
<S> <C> <C> <C> <C>
$158,445 Monthly
Package 7/1/98-6/30/99 Royal & Sun Alliance
$19,166 Monthly
TX Auto 7/1/98-6/30/99 Royal & Sun Alliance
$2,500 Monthly
Foreign Liability 7/1/98-6/30/99 Royal & Sun Alliance
$199,875 Monthly
Workers' Compensation 7/1/98-6/30/99 Royal & Sun Alliance
$24,673 Monthly
CA Worker's Compensation 7/1/98-6/30/99 Royal & Sun Alliance
$20,042 Monthly
Umbrella - $10 million 7/1/98-6/30/99 Royal & Sun Alliance
$15,500 Annually
Umbrella - $15 million 7/1/98-6/30/99 Royal & Sun Alliance
$20,000 Bi-monthly
Directors and Officers 2/25/99-4/25/99 National Union
</TABLE>
Exhibit 10
<PAGE>
BROTHERS GOURMET COFFEES, INC. AND AFFILIATED DEBTORS
FOR THE MONTH ENDED FEBRUARY 19, 1999
ACCOUNT # 2
CHASE
DEPOSITORY
<TABLE>
<S> <C>
Beginning Balance $ 179,163
Lockbox Receipts 4,109,964
First Union Transfer -
Goldman Withdrawals (3,820,031)
------------
Ending Balance $ 469,097
------------
------------
</TABLE>
NOTES:
Pursuant to the terms of the DIP financing agreement, this depository account
is in the name of Goldman Sachs Credit Partners, L.P. Consequently, Brothers
Gourmet Coffees, Inc. does not receive formal bank statements.
The Debtor receives daily lock box deposit amounts from Chase and daily
withdrawal amounts from Goldman Sachs Credit Partners, L.P.
<PAGE>
Information Request
PAYMENTS MADE IN NOVEMBER AND DECEMBER
Directors:
Aburdene, Elias
Bolduc, J.P.
Moore, James
Rudy, Ray
Officers:
Breen, Donald
Bilmes, Barry
Pennington, Linda
Davis, Eric
Brownstein, Hyatt, Farber
& Strickland P.C.
Schoonover, Randy
