|
|
|
|
|
|
|
|
|
|
|
|
|
|
Previous: MASSACHUSETTS FINANCIAL SERVICES CO /MA/, SC 13G, 1999-10-25 |
Next: COASTCAST CORP, 10-Q, 1999-10-25 |
<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): August 18, 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.)
7105 Katy Road
Houston, Texas 77024
- ---------------------------------------------------------------------
(Address of Principal (Zip Code)
Executive Offices)
(713) 868-8294
- ----------------------------------------------------------------------------
(Registrant's Telephone Number, Including Area Code)
- ----------------------------------------------------------------------------
(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 periods ended July 31, 1999, August 31, 1999 and September 30, 1999 are
attached hereto as Exhibit 99.1 and are incorporated herein by reference.
ITEM 7. FINANCIAL STATEMENTS AND EXHIBITS
(c) Exhibits
99.1 Copy of the Registrant's Monthly Operating Reports, for the
periods ended July 31, 1999, August 31, 1999 and September 30,
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: October 25, 1999 By: Barry Bilmes
Title: President
<PAGE>
DEBTOR: BROTHERS GOURMET COFFEES, INC. ACCRUAL BASIS-1
AND 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 JULY 31, 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.
RESPONSIBLE PARTY:
/s/ Larry Smith Controller
- ----------------------------------------- -----------------
ORIGINAL SIGNATURE OF RESPONSIBLE PARTY TITLE
Larry Smith August 18, 1999
- ----------------------------------------- -----------------
PRINTED NAME OF RESPONSIBLE PARTY DATE
PREPARER:
/s/ Clifton Franklin Accounting Manager
- ----------------------------------------- -----------------
ORIGINAL SIGNATURE OF PREPARER TITLE
Clifton Franklin August 18, 1999
- ----------------------------------------- -----------------
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. ACCRUAL BASIS-2
AND AFFILIATED DEBTORS
COMPARATIVE BALANCE SHEET
CASE NO.: 98-1970, 98-1971, 98-1973, 98-1974 THIRD 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. ACCRUAL BASIS-3
AND AFFILIATED DEBTORS
INCOME STATEMENT
CASE NO.: 98-1970, 98-1971, 98-1973, 98-1974 THIRD 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. ACCRUAL BASIS-4
AND 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)
4. SALE OF ASSETS
6. OTHER (ATTACH LIST)
7. TOTAL RECEIPTS
8. TOTAL CASH AVAILABLE
<CAPTION>
CURRENT MONTH DISBURSEMENTS
CHECK
NUMBER DATE PAYEE PURPOSE AMOUNT
<S> <C> <C> <C> <C>
TOTAL DISBURSEMENTS FROM BANK ACCOUNT
END OF MONTH BALANCE (SHOULD EQUAL ACCRUEL BASIS-6, LINE 5)
</TABLE>
<PAGE>
DEBTOR: BROTHERS GOURMET COFFEES, INC. ACCRUAL BASIS-5
AND AFFILIATED DEBTORS
CASE NO.: 98-1970, 98-1971, 98-1973, 98-1974
<TABLE>
<CAPTION>
ACCOUNTS RECEIVABLE AGING - SEE EXHIBIT 4
<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)
<CAPTION>
AGING OF POST PETITION TAXES AND PAYABLES - SEE EXHIBIT 5
0-30 31-60 61-90 91+
DAYS DAYS DAYS DAYS TOTAL
<S> <C> <C> <C> <C> <C>
ACCOUNTS PAYABLE
</TABLE>
<TABLE>
<CAPTION>
STATUS OF POST PETITION TAXES - SEE EXHIBIT 6
BEGINNING AMOUNT 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. ACCRUAL BASIS-6
AND 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
<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. ACCRUAL BASIS-7
AND 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> <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> <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 JULY, 1999.
</TABLE>
<PAGE>
DEBTOR: BROTHERS GOURMET COFFEES, INC. ACCRUAL BASIS-8
AND 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? (a)
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 (b)
5. HAVE ANY POSTPETITION LOANS BEEN RECEIVED BY THE DEBTOR FROM ANY PARTY? X (c)
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 (d)
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 Debter sold in May and June certain assets, consisting prinicpally of
inventory, accounts receivable and certain fixed assets to The Proctor and
Gamble Company in accordance with "The Asset Purchase Agreement" previously
approved and filed with the Court.
(b) 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.
(c) Loans received in accordance with Debtor-In-Possession Financing Agreement.
Approved by the Court.
(d) 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> <C>
</TABLE>
<PAGE>
DEBTOR: BROTHERS GOURMET COFFEES, INC. ACCRUAL BASIS-9
AND 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 69
2. Number of employees hired during the period 2
3. Number of employees terminated or resigned during the period 1
4. Total number of employees on payroll at end of period 70
</TABLE>
CHANGE OF ADDRESS
1705 KATY ROAD
HOUSTON, TEXAS 77024
713-868-8100
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: July 31, 1999
--- ------------------------
NEW ADDRESS:
<PAGE>
BROTHERS GOURMET COFFEES, INC. AND AFFILIATED DEBTORS
CONSOLIDATED BALANCE SHEET - UNAUDITED
AS OF JULY 31, 1999
($000'S)
<TABLE>
<S> <C>
Current Assets:
Petty cash $ 1
Cash in bank 1,807
Accounts receivable 1,677
Inventories 1,282
Prepaid expenses and other assets 67
----------
Current assets 4,834
Plant and Equipment, net 3,416
Other Assets:
Debt acquisition costs 1,096
Prepaid promotional expenses -
Other assets 256
----------
Total assets $ 9,602
----------
----------
Current Liabilities:
Accounts payable (post-petition) $ 749
Accrued expenses (post-petition) 861
Term loan note -
Revolving loan -
----------
Current liabilities 1,610
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) 9
Accounts payable (pre-petition) 5,893
Accrued expenses (pre-petition) 1,546
Accrued loss on future purchase commitments (pre-petition) -
Allowance for operating losses of discontinued segment (pre-petition) 1,828
----------
Liabilities subject to compromise 9,276
Minority interests 50
Shareholders' Equity:
Common stock 1
Additional paid-in capital 151,693
Accumulated deficit in earnings (164,897)
Treasury stock (450)
----------
Total Shareholders' Equity (13,653)
----------
Total Liabilities and Shareholders' Equity $ 9,602
----------
----------
</TABLE>
Exhibit 1
<PAGE>
BROTHERS GOURMET COFFEES, INC. AND AFFILIATED DEBTORS
CONSOLIDATED INCOME STATEMENT - UNAUDITED
AS OF JULY 31, 1999
($000'S)
<TABLE>
<S> <C>
Sales $ 810
Cost of goods sold 618
--------
Gross profit 192
Operating expenses
Customer 1
Sales 5
Distribution 31
Marketing -
General administrative 565
MIS administrative 55
--------
Total operating expenses 657
Operating income (loss) (465)
(Gain) loss on sale of assets -
Interest expense -
(Gain) loss on purchase commitments -
Other (income) expense -
--------
Net income (loss) $(465)
--------
--------
</TABLE>
Exhibit 2 Page 1 of 1
<PAGE>
BROTHERS GOURMET COFFEES, INC. AND AFFILIATED DEBTORS
POST-PETITION CASH RECEIPTS AND DISBURSEMENTS
FOR THE MONTH ENDED JULY, 1999
($000'S)
<TABLE>
<CAPTION>
----------
----------
6/30/99
7/31/99
----------
----------
RECEIPTS:
<S> <C>
Lockbox $ -
Customer Payment Belonging to P & G 240
Other(a) 427
----------
667
DISBURSEMENTS:
Green Coffee -
Packaging & Flavoring 106
Payroll & Benefits 262
Plant Overhead 85
Customer Expenses -
Distribution Costs 28
Sales Costs -
Marketing -
Management Info. Systems 4
Administrative 32
Professional Fees 261
Interest Expense & Bank Fees -
Slotting Fees -
Capital Expenditures 19
Other 6
Other - Return of Customer Payment to P & G 527
Total Disbursements 1,330
Net Cash Flow Prior to Goldman Activity (663)
Cash to Goldman -
Cash from Goldman -
----------
Net Cash Flow (663)
Beginning Cash 1,912
----------
Ending Cash Before Float 1,249
Outstanding Check Float 558
----------
Cash Ledger Balance per Bank $ 1,807
----------
----------
GOLDMAN DIP:
Beginning Balance $ -
Drawdowns -
Paybacks -
----------
Ending Balance $ -
----------
----------
</TABLE>
Exhibit 3 1 of 1
<PAGE>
BROTHERS GOURMET COFFEES, INC. AND AFFILIATED DEBTORS
AGING OF ACCOUNTS RECEIVABLE
AS OF JULY 31, 1999
($000'S)
<TABLE>
<CAPTION>
Past Due
----------------------------------
0 - 30 30 - 60 60 - 90 Over 90 Allowance for Net
------ ------- ------- ------- Total Accounts Returns and Bad Accounts
Days(a) Days Days (a) Receivable Debts Receivable
------ ---- ---- --- ---------- ----- ----------
<S> <C> <C> <C> <C> <C> <C>
$ 1,242 $ 12 $ - $ - $ 1,254 $ - $ 1,254
Cash sales 6K billed in April $ 10
To be offset with Accrue Rebates $ -
Employee Advances - Current $ 21
Accrued P&G Sales - Current $ 221
A/R Coffee Broker Over 180 Past due $ 171
-------
Total A/R $ 1,677
-------
-------
</TABLE>
Exhibit 4 Page 1 of 1
<PAGE>
BROTHERS GOURMET COFFEES, INC AND AFFILIATED DEBTORS
AGING OF ACCOUNTS PAYABLE
AS OF JULY 31, 1999
($ 000'S)
<TABLE>
<CAPTION>
61-90 TOTAL
---------- ACCOUNTS
0-30 DAYS 31-60 DAYS DAYS 91+ DAYS(b) PAYABLE
--------- ---------- ---------- ----------- -------
<S> <C> <C> <C> <C> <C>
$ 38 $ (399) $ 233 $ (571) $ 192 (a)
Outstanding Checks, Chase Account No. 312-7934031-66 27
Outstanding Checks, Wells Fargo Account No. 337788970 395
Outstanding Checks, Wells Fargo Account No. 4595852287 3
Outstanding Checks, FUNB Account No. 2155300194336 132
------
Total Accounts Payable $ 749
------
------
</TABLE>
NOTES:
(a) Post-petition accounts payable debit balance results from prepayments
for inventory/materials not yet received. (includes est.)
(b) Amounts over 90 days consist primarily of 20% holdback on professional
fees.
Exhibit 5 Page 1 of 1
<PAGE>
BROTHERS GOURMET COFFEES, INC. AND AFFILIATED DEBTORS
STATUS OF POST-PETITION TAXES
AS OF JULY 31, 1999
($000'S)
<TABLE>
<CAPTION>
AMOUNT
BEGINNING WITHHELD OR AMOUNT ENDING TAX DELINQUENT
TAX LIABILITY ACCRUED PAID LIABILITY TAXES
------------- ------- ---- --------- -----
<S> <C> <C> <C> <C> <C>
FEDERAL
Withholding (a) $ - $ 6.0 $ 6.0 $ - $ -
Unemployment (a) - - - - -
--------------------------------------------------------------------------
TOTAL FEDERAL - 6.0 6.0 - -
STATE
Withholding (a) 1.0 - - 1.0 -
Unemployment (a) 0.1 - - 0.1 -
Income 2.8 - - 2.8 -
Property 38.1 17.0 (93.4) 148.5 -
Sales 77.2 - - 77.2 -
Franchise (b) 128.2 - - 128.2 -
--------------------------------------------------------------------------
TOTAL STATE AND LOCAL 247.4 17.0 (93.4) 357.8 -
--------------------------------------------------------------------------
TOTAL TAXES $ 247.4 $ 23.0 $ (87.4) $ 357.8 $ -
--------------------------------------------------------------------------
--------------------------------------------------------------------------
</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 1 of 1
<PAGE>
BROTHERS GOURMET COFFEES, INC. AND AFFILIATED DEBTORS
BANK RECONCILIATION
AS OF JULY 31, 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 066-611121 312-7934031-66 2079900003505 2155300194336
C. PURPOSE (TYPE): DEPOSITORY DEPOSITORY CHECKING CHECKING PAYROLL
<S> <C> <C> <C> <C> <C>
1. BALANCE PER BANK STATEMENT $ - $ - $ 41.8 $ - $ 140.7
2. ADD: TOTAL DEPOSITS NOT CREDITED 0.0 0.0 0.0 0.0 0.0
3. SUBTRACT: OUTSTANDING CHECKS 0.0 0.0 (26.8) 0.0 (132.1)
4. OTHER RECONCILING ITEMS 0.0 0.0 0.0 0.0 0.0
5. MONTH END BALANCE PER BOOKS $ - $ - $ 15.0 $ - $ 8.6
6. NUMBER OF LAST CHECK WRITTEN
<CAPTION>
ACCOUNT #6 ACCOUNT #7 ACCOUNT #8 ACCOUNT #9 ACCOUNT #10
A. BANK: FUNB FUNB WELLS FARGO WELLS FARGO WELLS FARGO
B. ACCOUNT NUMBER 2090000011450 2090000011450 2090000802410 337788970 4595852287
C. PURPOSE (TYPE): DEPOSITORY DEPOSITORY 337789002 CHECKING PAYROLL
<S> <C> <C> <C> <C> <C>
1. BALANCE PER BANK STATEMENT $ 3.6 $ 0.1 $ 10.5 $ 1,591.9 $ 18.1
2. ADD: TOTAL DEPOSITS NOT CREDITED 0.0 0.0 0.0 0.0 0.0
3. SUBTRACT: OUTSTANDING CHECKS 0.0 0.0 0.0 (395.2) (3.0)
4. OTHER RECONCILING ITEMS 0.0 0.0 0.0 0.0
5. MONTH END BALANCE PER BOOKS $ 3.6 $ 0.1 $ 10.5 $ 1,196.7 $ 15.1
6. NUMBER OF LAST CHECK WRITTEN
<CAPTION>
A. BANK:
B. ACCOUNT NUMBER TOTAL
C. PURPOSE (TYPE):
<S> <C>
1. BALANCE PER BANK STATEMENT $ 1,806.7
2. ADD: TOTAL DEPOSITS NOT CREDITED $ -
3. SUBTRACT: OUTSTANDING CHECKS $ (557.1)
4. OTHER RECONCILING ITEMS $ -
5. MONTH END BALANCE PER BOOKS $ 1,249.6
6. NUMBER OF LAST CHECK WRITTEN
Outstanding Checks, Chase 312-7934031-99 26.8
Outstanding Checks, FUNB 2155300194336 132.1
Outstanding Checks, WF 4595852287 3.0
Outstanding Checks, WF 337788970 395.2
Month End Balance Per Books $ 1,806.7
</TABLE>
Exhibit 7 Page 1 of 1
<PAGE>
BROTHERS GOURMET COFFEES, INC. AND AFFILIATED DEBTORS
DISTRIBUTIONS TO INSIDERS
July 31, 1999
<TABLE>
<CAPTION>
DIRECTOR'S OTHER TOTAL
SALARY (a) FEES BONUS SEVERANCE EXPENSE (b) AUTO 401(K) PAYMENTS
DIRECTORS: ------------ ---------- ----- --------- ----------- ---- ------ -----------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
Aburdene, Elias $ - $ - $ - $ - $ - $ - $ - $ -
Bolduc, J.P. - - - - - - - -
Moore, James - - - - - - - -
Rudy, Ray - - - - - - - -
OFFICERS:
Breen, Donald - - - - - - - -
Bilmes, Barry 9,615 - - - 783 - 144 10,542
Pennington, Linda 10,769 - - - 84 - - 10,853
Davis, Eric - - - - - - - -
- - - - - - - -
-----------------------------------------------------------------------------------------------------------
$ 20,384 $ - $ - $ - $ 867 $ - $ 144 $ 21,395
-----------------------------------------------------------------------------------------------------------
-----------------------------------------------------------------------------------------------------------
</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 1 of 1
<PAGE>
BROTHERS GOURMET COFFEES, INC. AND AFFILIATED DEBTORS
PAYMENTS TO PROFESSIONALS (a)
FOR THE MONTH ENDING JULY 31, 1999
<TABLE>
<CAPTION>
NAME TOTAL
---- -----
<S> <C>
Weil, Gotshal & Manges, LLP $ -
Bernard A. Katz $ -
Logan $ -
White & Case, LLP $ -
PricewaterhouseCoopers, LLP $ 261
Brownstein, Hyatt, Farber & Strickland, P.C. $ -
Richard, Layton & Finger, P.A. $ -
The Bayard Firm $ -
Edwards, Ballard, Sturm, Clark & Keim, P.A. $ -
-------
$ 261
-------
-------
</TABLE>
NOTES:
(a) Payments for post-petition fees and expenses in accordance with the Interim
Compensation Order.
Exhibit 9 Page 1 of 1
<PAGE>
BROTHERS GOURMET COFFEES, INC. AND AFFILIATED DEBTORS
INSURANCE POLICIES
AS OF JULY 31, 1999
<TABLE>
<CAPTION>
TYPE OF POLICY TERM CARRIER ANNUAL PREMIUM FREQUENCY
-------------- ---- ------- -------------- ---------
<S> <C> <C> <C> <C>
Package 8/1/99 - 5/1/00 The Rowley Agency $54,975 Quarterly
TX Auto 8/1/99 - 5/1/00 The Rowley Agency $6,652 Quarterly
Workers' Compensation 8/1/99 - 5/1/00 The Rowley Agency $69,344 Quarterly
CA Worker's Compensation 8/1/99 - 5/1/00 The Rowley Agency $8,565 Quarterly
Umbrella - $10 million 8/1/99 - 5/1/00 The Rowley Agency $6,955 Quarterly
Umbrella - $15 million 8/1/99 - 5/1/00 The Rowley Agency $5,375 Quarterly
Directors and Officers 4/26/99-8/31/99 *** AON Risk Insurance $120,000 Periodic
</TABLE>
*** NOTE: Will Be Extended As Needed
Exhibit 10 Page 1 of 1
<PAGE>
DEBTOR: BROTHERS GOURMET COFFEES, INC. ACCRUAL BASIS-1
AND 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 AUGUST 31, 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.
RESPONSIBLE PARTY:
/s/ Larry Smith Controller
- --------------------------------------- --------------------------
ORIGINAL SIGNATURE OF RESPONSIBLE PARTY TITLE
Larry Smith September 17, 1999
- --------------------------------------- --------------------------
PRINTED NAME OF RESPONSIBLE PARTY DATE
PREPARER:
/s/ Clifton Franklin Accounting Manager
- --------------------------------------- --------------------------
ORIGINAL SIGNATURE OF PREPARER TITLE
Clifton Franklin September 17, 1999
- --------------------------------------- --------------------------
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. ACCRUAL BASIS-2
AND AFFILIATED DEBTORS
COMPARATIVE BALANCE SHEET
CASE NO.: 98-1970, 98-1971, 98-1973, 98-1974 THIRD 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. ACCRUAL BASIS-3
AND AFFILIATED DEBTORS
INCOME STATEMENT
CASE NO.: 98-1970, 98-1971, 98-1973, 98-1974 THIRD 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. ACCRUAL BASIS-4
AND 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)
4. SALE OF ASSETS
6. OTHER (ATTACH LIST)
7. TOTAL RECEIPTS
8. TOTAL CASH AVAILABLE
<CAPTION>
CURRENT MONTH DISBURSEMENTS
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. ACCRUAL BASIS-5
AND AFFILIATED DEBTORS
CASE NO.: 98-1970, 98-1971, 98-1973, 98-1974
<TABLE>
<CAPTION>
ACCOUNTS RECEIVABLE AGING - SEE EXHIBIT 4
<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)
<CAPTION>
AGING OF POST PETITION TAXES AND PAYABLES - SEE EXHIBIT 5
<S> <C> <C> <C> <C> <C>
0-30 31-60 61-90 91+
DAYS DAYS DAYS DAYS TOTAL
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. ACCRUAL BASIS-6
AND 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.
MONTH:
<TABLE>
<CAPTION>
BANK RECONCILIATION - SEE EXHIBIT 7
ACCOUNT #1 ACCOUNT #2 ACCOUNT #3
<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>
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. ACCRUAL BASIS-7
AND 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 August, 1999.
</TABLE>
<PAGE>
DEBTOR: BROTHERS GOURMET COFFEES, INC. ACCRUAL BASIS-8
AND 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
<S> <C> <C>
YES NO
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> <C>
</TABLE>
<PAGE>
DEBTOR: BROTHERS GOURMET COFFEES, INC. ACCRUAL BASIS-9
AND 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 70
2. Number of employees hired during the period 6
3. Number of employees terminated or resigned during the period 5
4. Total number of employees on payroll at end of period 71
</TABLE>
CHANGE OF ADDRESS
1705 KATY ROAD
HOUSTON, TEXAS 77024
713-868-8100
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: August 31, 1999
--- -----------------------
NEW ADDRESS:
<PAGE>
BROTHERS GOURMET COFFEES, INC. AND AFFILIATED DEBTORS
CONSOLIDATED BALANCE SHEET - UNAUDITED
AS OF AUGUST 31, 1999
($000'S)
<TABLE>
<S> <C>
Current Assets:
Petty cash $ 1
Cash in bank 2,158
Accounts receivable 1,298
Receivable from sale of
discontinued operations -
Inventories 1,156
Prepaid expenses and other assets 62
-----------
Current assets 4,675
Plant and Equipment, net 3,341
Other Assets:
Goodwill -
Design costs -
Retail assets held for sale -
Debt acquisition costs 1,096
Debt restructuring costs
Prepaid promotional expenses -
Other assets 256
-----------
Total assets $ 9,368
-----------
-----------
Current Liabilities:
Accounts payable (post-petition) $ 1,238
Accrued expenses (post-petition) 281
Term loan note -
Revolving loan -
-----------
Current liabilities 1,519
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) 9
Accounts payable (pre-petition) 5,893
Accrued expenses (pre-petition) 1,546
Accrued loss on future purchase commitments (pre-petition) -
Allowance for operating losses of discontinued segment (pre-petition) 1,828
-----------
Liabilities subject to compromise 9,276
Minority interests 50
Shareholders' Equity:
Common stock 1
Additional paid-in capital 151,693
Accumulated deficit in earnings (165,040)
Treasury stock (450)
-----------
Total Shareholders' Equity (13,796)
-----------
Total Liabilities and Shareholders' Equity $ 9,368
-----------
-----------
</TABLE>
NOTES:
(a) Post-petition accounts payable debit balance results from prepayments for
inventory/materials not yet received.
Exhibit 1
<PAGE>
BROTHERS GOURMET COFFEES, INC. AND AFFILIATED DEBTORS
CONSOLIDATED INCOME STATEMENT - UNAUDITED
#REF!
($000'S)
<TABLE>
<S> <C>
Sales $ 876
Cost of goods sold 683
-------
Gross profit 193
Operating expenses
Customer 4
Sales -
Distribution -
Marketing -
General administrative 292
MIS administrative 56
-------
Total operating expenses 352
Operating income (loss) (159)
(Gain) loss on sale of assets -
Interest expense -
(Gain) loss on purchase commitments -
Other (income) expense (16)
-------
Net income (loss) $(143)
-------
-------
</TABLE>
Exhibit 2 Page 11 of 19
<PAGE>
BROTHERS GOURMET COFFEES, INC. AND AFFILIATED DEBTORS
POST-PETITION CASH RECEIPTS AND DISBURSEMENTS
FOR THE MONTH ENDED AUGUST, 1999
($000'S)
<TABLE>
<CAPTION>
-----------
-----------
7/31/99
8/31/99
-----------
-----------
RECEIPTS:
<S> <C>
Lockbox $ -
Customer Payment Belonging to P & G 240
Other 1,078
-----------
1,318
DISBURSEMENTS:
Green Coffee -
Packaging & Flavoring 136
Payroll & Benefits 274
Plant Overhead 132
Customer Expenses -
Distribution Costs 8
Sales Costs -
Marketing -
Management Info. Systems 36
Administrative 116
Professional Fees 360
Interest Expense & Bank Fees -
Slotting Fees -
Capital Expenditures -
Other 1
Other - Return of Customer Payment to P & G 240
Total Disbursements 1,303
Net Cash Flow 15
-
-
-----------
Net Cash Flow 15
Beginning Cash 1,249
-----------
Ending Cash Before Float 1,264
Outstanding Check Float 898
Deposits Not Credited (4)
-----------
Cash Ledger Balance per Bank $ 2,158
===========
</TABLE>
Exhibit 3 Page 12 of 19
<PAGE>
BROTHERS GOURMET COFFEES, INC. AND AFFILIATED DEBTORS
AGING OF ACCOUNTS RECEIVABLE
AS OF AUGUST 31, 1999
($000'S)
<TABLE>
<CAPTION>
Past Due
-------------------------------
0 - 30 30 - 60 60 - 90 Over 90 Allowance for Net
------- ------- ------- ------- Total Accounts Returns and Bad Accounts
Days(a) Days Days (a) Receivable Debts Receivable
------- ------- ------- ------- -------------- --------------- ----------
<S> <C> <C> <C> <C> <C> <C>
$ 457 $ 301 $ 95 $ 30 $ 883 $ - $ 883
Cash sales 6K billed in April $ 10
A/R other $ 13
Employee Advances - Current $ 21
Accrued P&G Sales - Current $ 200
A/R Coffee Broker Over 180 Past due $ 171
---------
Total A/R $ 1,298
---------
---------
</TABLE>
Exhibit 4 Page 13 of 19
<PAGE>
BROTHERS GOURMET COFFEES, INC AND AFFILIATED DEBTORS
AGING OF ACCOUNTS PAYABLE
#VALUE!
($ 000'S)
<TABLE>
<CAPTION>
TOTAL
ACCOUNTS
0-30 DAYS 31-60 DAYS 61-90 DAYS 91+ DAYS(b) PAYABLE
--------- ---------- ---------- ----------- --------
<S> <C> <C> <C> <C>
$ 408 $ (17) $ (55) $ (4) $ 340 (a)
Outstanding Checks, Chase Account No. 312-7934031-66 27
Outstanding Checks, Wells Fargo Account No. 337788970 738
Outstanding Checks, Wells Fargo Account No. 4595852287 1
Outstanding Checks, FUNB Account No. 2155300194336 132
------------
Total Accounts Payable $ 1,238
------------
------------
</TABLE>
NOTES:
(a) Post-petition accounts payable debit balance results from prepayments for
inventory/materials not yet received. (includes est.)
(b) Amounts over 90 days consist primarily of 20% holdback on professional
fees.
Exhibit 5 Page 14 of 19
<PAGE>
BROTHERS GOURMET COFFEES, INC. AND AFFILIATED DEBTORS
STATUS OF POST-PETITION TAXES
AS OF AUGUST 31, 1999
($000'S)
<TABLE>
<CAPTION>
AMOUNT
BEGINNING WITHHELD OR AMOUNT ENDING TAX DELINQUENT
TAX LIABILITY ACCRUED PAID LIABILITY TAXES
------------- ------- ---- --------- -----
<S> <C> <C> <C> <C> <C>
FEDERAL
Withholding (a) $ - $ 46.8 $ 46.8 $ - $ -
Unemployment (a) - - - - -
------------------------------------------------------------------------------
TOTAL FEDERAL - 46.8 46.8 - -
STATE
Withholding (a) 1.0 25.0 - 26.0 -
Unemployment (a) 0.1 - - 0.1 -
Income 2.8 - 0.5 2.3 -
Property 148.5 13.0 0.7 160.8 -
Sales 77.2 - - 77.2 -
Franchise (b) 128.2 - - 128.2 -
------------------------------------------------------------------------------
TOTAL STATE AND LOCAL 357.8 38.0 1.2 394.6 -
------------------------------------------------------------------------------
TOTAL TAXES $ 357.8 $ 84.8 $ 48.0 $ 394.6 $ -
------------------------------------------------------------------------------
------------------------------------------------------------------------------
</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 15 of 19
<PAGE>
BROTHERS GOURMET COFFEES, INC. AND AFFILIATED DEBTORS
BANK RECONCILIATION
AS OF AUGUST 31, 1999
($000'S)
<TABLE>
<CAPTION>
0 0 0 0 0
A. BANK: 0 0 0 0 0
B. ACCOUNT NUMBER: 0 066-611121 0 0 0
C. PURPOSE (TYPE): 0 0 0 0 0
1. BALANCE PER BANK STATEMENT $ - $ - $ 41.5 $ - $ 140.7
2. ADD: TOTAL DEPOSITS NOT CREDITED 0.0 0.0 0.0 0.0 0.0
3. SUBTRACT: OUTSTANDING CHECKS 0.0 0.0 (26.8) 0.0 (132.1)
4. OTHER RECONCILING ITEMS 0.0 0.0 0.0 0.0 0.0
5. MONTH END BALANCE PER BOOKS $ - $ - $ 14.7 $ - $ 8.6
6. NUMBER OF LAST CHECK WRITTEN
<CAPTION>
0 0 0 0 0
A. BANK: 0 0 WELLS FARGO 0 0
B. ACCOUNT NUMBER: 0 0 0 0 0 TOTAL
C. PURPOSE (TYPE): 0 0 337789002 0 0
<S> <C> <C> <C> <C> <C> <C>
1. BALANCE PER BANK STATEMENT $ 3.6 $ 1.0 $ 0.5 $1,963.9 $ 7.0 $ 2,158.3
2. ADD: TOTAL DEPOSITS NOT CREDITED 0.0 0.0 0.0 3.7 0.0 $ 3.7
3. SUBTRACT: OUTSTANDING CHECKS 0.0 0.0 0.0 (738.0) (1.3) $ (898.2)
4. OTHER RECONCILING ITEMS 0.0 0.0 0.0 0.0 $ -
5. MONTH END BALANCE PER BOOKS $ 3.6 $ 1.0 $ 0.5 $1,229.6 $ 5.8 $ 1,263.8
6. NUMBER OF LAST CHECK WRITTEN
Outstanding Checks, Chase 312-7934031-66 26.8
Outstanding Checks, FUNB 2155300194336 132.1
Outstanding Checks, WF 4595852287 1.3
Outstanding Checks, WF 337788970 738.0
Deposits Not Credited, WF 337788970 (3.7)
Month End Balance Per Bank $ 2,158.3
</TABLE>
Exhibit 7 Page 16 of 19
<PAGE>
BROTHERS GOURMET COFFEES, INC. AND AFFILIATED DEBTORS
DISTRIBUTIONS TO INSIDERS
AUGUST 31, 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 - - - - - - - -
Bilmes, Barry 9,615 - - - - - 144 9,759
Pennington, Linda 10,769 - - - 122 - - 10,891
Davis, Eric - - - - - - - -
- - - - - - - -
---------------------------------------------------------------------------------------------------------
$20,384 $ - $ - $ - $122 $ - $ 144 $20,650
---------------------------------------------------------------------------------------------------------
---------------------------------------------------------------------------------------------------------
</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 17 of 19
<PAGE>
BROTHERS GOURMET COFFEES, INC. AND AFFILIATED DEBTORS
PAYMENTS TO PROFESSIONALS (a)
FOR THE MONTH ENDING AUGUST 31, 1999
<TABLE>
<CAPTION>
NAME TOTAL
---- -----
<S> <C>
Weil, Gotshal & Manges, LLP $151
Bernard A. Katz $ 22
Logan $ 1
White & Case, LLP $ 91
PricewaterhouseCoopers, LLP $ -
Brownstein, Hyatt, Farber & Strickland, P.C $ 47
Richard, Layton & Finger, P.A $ 33
The Bayard Firm $ 14
Edwards, Ballard, Sturm, Clark & Keim, P.A $ 1
------
$360
------
------
</TABLE>
NOTES:
(a) Payments for post-petition fees and expenses in accordance with the Interim
Compensation Order.
Exhibit 9 Page 18 of 19
<PAGE>
BROTHERS GOURMET COFFEES, INC. AND AFFILIATED DEBTORS
INSURANCE POLICIES
AS OF AUGUST 31, 1999
<TABLE>
<CAPTION>
TYPE OF POLICY TERM CARRIER ANNUAL PREMIUM FREQUENCY
-------------- ---- ------- -------------- ---------
<S> <C> <C> <C> <C>
Package 8/1/99 - 5/1/00 The Rowley Agency $54,975 Quarterly
TX Auto 8/1/99 - 5/1/00 The Rowley Agency $6,652 Quarterly
Workers' Compensation 8/1/99 - 5/1/00 The Rowley Agency $69,344 Quarterly
CA Worker's Compensation 8/1/99 - 5/1/00 The Rowley Agency $8,565 Quarterly
Umbrella - $10 million 8/1/99 - 5/1/00 The Rowley Agency $6,955 Quarterly
Umbrella - $15 million 8/1/99 - 5/1/00 The Rowley Agency $5,375 Quarterly
Directors and Officers 4/26/99-8/31/99 *** AON Risk Insurance $120,000 Periodic
</TABLE>
*** NOTE: Will Be Extended As Needed
Exhibit 10 Page 19 of 19
<PAGE>
DEBTOR: BROTHERS GOURMET COFFEES, INC. ACCRUAL BASIS-1
AND 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 SEPTEMBER 30, 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.
RESPONSIBLE PARTY:
/s/ Larry Smith Controller
- ------------------------------------------ ---------------------
ORIGINAL SIGNATURE OF RESPONSIBLE PARTY TITLE
Larry Smith October 19, 1999
- ------------------------------------------ ---------------------
PRINTED NAME OF RESPONSIBLE PARTY DATE
PREPARER:
/s/ Clifton Franklin Accounting Manager
- ------------------------------------------ ---------------------
ORIGINAL SIGNATURE OF PREPARER TITLE
Clifton Franklin October 19, 1999
- ------------------------------------------ ---------------------
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. ACCRUAL BASIS-2
AND AFFILIATED DEBTORS
COMPARATIVE BALANCE SHEET
CASE NO.: 98-1970, 98-1971, 98-1973, 98-1974 THIRD 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. ACCRUAL BASIS-3
AND AFFILIATED DEBTORS
INCOME STATEMENT
CASE NO.: 98-1970, 98-1971, 98-1973, 98-1974 THIRD 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. ACCRUAL BASIS-4
AND 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)
4. SALE OF ASSETS
6. OTHER (ATTACH LIST)
7. TOTAL RECEIPTS
8. TOTAL CASH AVAILABLE
<CAPTION>
CURRENT MONTH DISBURSEMENTS
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. ACCRUAL BASIS-5
AND AFFILIATED DEBTORS
CASE NO.: 98-1970, 98-1971, 98-1973, 98-1974
<TABLE>
<CAPTION>
ACCOUNTS RECEIVABLE AGING - SEE EXHIBIT 4
<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)
<CAPTION>
AGING OF POST PETITION TAXES AND PAYABLES - SEE EXHIBIT 5
<S> <C> <C> <C> <C> <C>
0-30 31-60 61-90 91+
DAYS DAYS DAYS DAYS TOTAL
ACCOUNTS PAYABLE
<CAPTION>
STATUS OF POST PETITION TAXES - SEE EXHIBIT 6
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. ACCRUAL BASIS-6
AND 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.
MONTH:
<TABLE>
<CAPTION>
BANK RECONCILIATION - SEE EXHIBIT 7
ACCOUNT #1 ACCOUNT #2 ACCOUNT #3
<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. ACCRUAL BASIS-7
AND 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> <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> <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 August, 1999.
</TABLE>
<PAGE>
DEBTOR: BROTHERS GOURMET COFFEES, INC. ACCRUAL BASIS-8
AND 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>
<S><C>
INSURANCE POLICIES - SEE EXHIBIT 10
TYPE OF PAYMENT AMOUNT
POLICY CARRIER PERIOD COVERED & FREQUENCY
</TABLE>
<PAGE>
DEBTOR: BROTHERS GOURMET COFFEES, INC. ACCRUAL BASIS-9
AND AFFILIATED DEBTORS
Case No.: 98-1970, 98-1971, 98-1973, 98-1974
<TABLE>
<CAPTION>
<S><C>
PERSONNEL
FULL/PART TIME
1. Total number of employees at beginning of period 71
2. Number of employees hired during the period 1
3. Number of employees terminated or resigned during the period 3
4. Total number of employees on payroll at end of period 69
</TABLE>
CHANGE OF ADDRESS
1705 KATY ROAD
HOUSTON, TEXAS 77024
713-868-8100
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: September 30, 1999
--- -----------------------
NEW ADDRESS:
<PAGE>
BROTHERS GOURMET COFFEES, INC. AND AFFILIATED DEBTORS
CONSOLIDATED BALANCE SHEET - UNAUDITED
AS OF SEPTEMBER 30, 1999
($000'S)
<TABLE>
<CAPTION>
Current Assets:
<S> <C>
Petty cash $ 1
Cash in bank 1,153
Accounts receivable 2,174
Receivable from sale of
discontinued operations -
Inventories 1,038
Prepaid expenses and other assets 36
-------------
Current assets 4,402
Plant and Equipment, net 3,293
Other Assets:
Goodwill -
Design costs -
Retail assets held for sale -
Debt acquisition costs 1,096
Debt restructuring costs
Prepaid promotional expenses -
Other assets 256
-------------
Total assets $ 9,047
-------------
-------------
Current Liabilities:
Accounts payable (post-petition) $ 736
Accrued expenses (post-petition) 611
Term loan note -
Revolving loan -
-------------
Current liabilities 1,347
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) 9
Accounts payable (pre-petition) 5,893
Accrued expenses (pre-petition) 1,546
Accrued loss on future purchase commitments (pre-petition) -
Allowance for operating losses of discontinued segment (pre-petition) 1,828
-------------
Liabilities subject to compromise 9,276
Minority interests 50
Shareholders' Equity:
Common stock 1
Additional paid-in capital 151,693
Accumulated deficit in earnings (165,189)
Treasury stock (450)
-------------
Total Shareholders' Equity (13,945)
-------------
Total Liabilities and Shareholders' Equity $ 9,047
-------------
-------------
</TABLE>
Exhibit 1
<PAGE>
BROTHERS GOURMET COFFEES, INC. AND AFFILIATED DEBTORS
CONSOLIDATED INCOME STATEMENT - UNAUDITED
AS OF SEPTEMBER 30, 1999
($000'S)
<TABLE>
<S> <C>
Sales $ 1,091
Cost of goods sold (1) 886
---------------
Gross profit 205
Operating expenses
Customer 10
Sales 6
Distribution 4
Marketing 3
General administrative 278
MIS administrative 54
---------------
Total operating expenses 354
Operating income (loss) (149)
(Gain) loss on sale of assets -
Interest expense -
(Gain) loss on purchase commitments -
Other (income) expense -
---------------
Net income (loss) $ (149)
---------------
---------------
</TABLE>
Exhibit 2 Page 11 of 19
<PAGE>
BROTHERS GOURMET COFFEES, INC. AND AFFILIATED DEBTORS
POST-PETITION CASH RECEIPTS AND DISBURSEMENTS
FOR THE MONTH ENDED SEPTEMBER, 1999
($000'S)
<TABLE>
<CAPTION>
--------------
--------------
8/31/99
9/30/99
--------------
--------------
RECEIPTS:
<S> <C>
Lockbox $ -
Other ( b ) 332
--------------
332
DISBURSEMENTS:
Green Coffee ( a ) (82)
Packaging & Flavoring 201
Payroll & Benefits 386
Plant Overhead 152
Customer Expenses -
Distribution Costs 10
Sales Costs -
Marketing -
Management Info. Systems 20
Administrative 43
Professional Fees 383
Interest Expense & Bank Fees -
Slotting Fees -
Capital Expenditures 55
Other 4
Other - Return of Customer Payment to P & G -
--------------
Total Disbursements 1,172
Net Cash Flow (840)
-
-
--------------
Net Cash Flow (840)
Beginning Cash 1,264
--------------
Ending Cash Before Float 424
Outstanding Check Float 729
Deposits Not Credited -
--------------
Cash Ledger Balance per Bank $ 1,153
--------------
--------------
</TABLE>
Note: ( a )
Represents checks that were issued in a previous period that were
subsequently voided.
Note: ( b )
On October 8th and October 12th, $571K and $101K were received from
P & G.
Exhibit 3 Page 12 of 19
<PAGE>
BROTHERS GOURMET COFFEES, INC. AND AFFILIATED DEBTORS
AGING OF ACCOUNTS RECEIVABLE
AS OF SEPTEMBER 30, 1999
($000'S)
<TABLE>
<CAPTION>
Past Due
----------------------------------
30 - 60 60 - 90 Over 90 Allowance for Net
-------- ------- ------- Total Accounts Returns and Accounts
0 - 30 Days(a) Days Days (a) Receivable Bad Debts Receivable
- -------------- ---- ---- --- -------------- ------------- ----------
<S> <C> <C> <C> <C> <C> <C>
$ 604 $ 772 $ 276 $ 121 $ 1,773 $ - $ 1,773
.(2).
Cash sales 6K billed in April $ 10
Employee Advances - Current $ 21
Accrued P&G Sales - Current $ 199
A/R Coffee Broker Over 180 Past due $ 171
-----
Total A/R $ 2,174
-------
-------
</TABLE>
(2) On October 8th and October 12th, $571K and $101K was received from P&G.
Exhibit 4 Page 13 of 19
<PAGE>
BROTHERS GOURMET COFFEES, INC AND AFFILIATED DEBTORS
AGING OF ACCOUNTS PAYABLE
AS OF SEPTEMBER 30, 1999
($ 000'S)
<TABLE>
<CAPTION>
TOTAL
ACCOUNTS
0-30 DAYS 31-60 DAYS 61-90 DAYS 91+ DAYS(B) PAYABLE
---------- ----------- ------------- ------------ -------
<S> <C> <C> <C> <C>
$ 91 $ (73) $ (31) $ 20 $ 7
Outstanding Checks, Chase Account No. 312-7934031-66 27
Outstanding Checks, Wells Fargo Account No. 337788970 569
Outstanding Checks, Wells Fargo Account No. 4595852287 1
Outstanding Checks, FUNB Account No. 2155300194336 132
---------
Total Accounts Payable $ 736
---------
---------
</TABLE>
NOTES:
(a) Post-petition accounts payable debit balance results from prepayments for
inventory/materials not yet received. (includes est.)
(b) Amounts over 90 days consist primarily of 20% holdback on professional
fees.
Exhibit 5 Page 14 of 19
<PAGE>
BROTHERS GOURMET COFFEES, INC. AND AFFILIATED DEBTORS
STATUS OF POST-PETITION TAXES
AS OF SEPTEMBER 30, 1999
($000's)
<TABLE>
<CAPTION>
AMOUNT
BEGINNING WITHHELD AMOUNT ENDING TAX DELINQUENT
TAX LIABILITY OR ACCRUED PAID LIABILITY TAXES
------------- ---------- ---- --------- -----
FEDERAL
<S> <C> <C> <C> <C> <C>
Withholding (a) $ - $ 48.8 $ 48.8 $ - $ -
Unemployment (a) - - - - -
-----------------------------------------------------------------------------
TOTAL FEDERAL - 48.8 48.8 - -
STATE
Withholding (a) 26.0 - - 26.0 -
Unemployment (a) 0.1 - - 0.1 -
Income 2.3 - - 2.3 -
Property 160.8 86.9 - 247.7 -
Sales 77.2 - - 77.2 -
Franchise (b) 128.2 - - 128.2 -
-----------------------------------------------------------------------------
TOTAL STATE AND LOCAL 394.6 86.9 - 481.5 -
-----------------------------------------------------------------------------
TOTAL TAXES $ 394.6 $ 135.7 $ 48.8 $ 481.5 $ -
-----------------------------------------------------------------------------
-----------------------------------------------------------------------------
</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 15 of 19
<PAGE>
BROTHERS GOURMET COFFEES, INC. AND AFFILIATED DEBTORS
BANK RECONCILIATION
AS OF SEPTEMBER 30, 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 066-611121 312-7934031-66 2079900003505 2155300194336
C. PURPOSE (TYPE): DEPOSITORY DEPOSITORY CHECKING CHECKING PAYROLL
<S> <C> <C> <C> <C> <C>
1. BALANCE PER BANK STATEMENT $ - $ - $ 41.5 $ - $ 140.7
2. ADD: TOTAL DEPOSITS NOT CREDITED 0.0 0.0 0.0 0.0 0.0
3. SUBTRACT: OUTSTANDING CHECKS 0.0 0.0 (26.8) 0.0 (132.1)
4. OTHER RECONCILING ITEMS 0.0 0.0 0.0 0.0 0.0
5. MONTH END BALANCE PER BOOKS $ - $ - $ 14.6 $ - $ 8.6
6. NUMBER OF LAST CHECK WRITTEN
<CAPTION>
ACCOUNT #6 ACCOUNT #7 ACCOUNT #8 ACCOUNT #9 ACCOUNT #10
A. BANK: FUNB FUNB WELLS FARGO WELLS FARGO WELLS FARGO
B. ACCOUNT NUMBER: 2090000011450 2090000011450 2090000802410 337788970 4595852287 TOTAL
C. PURPOSE (TYPE): DEPOSITORY DEPOSITORY 337789002 CHECKING PAYROLL
<S> <C> <C> <C> <C> <C> <C>
1. BALANCE PER BANK STATEMENT $ 3.6 $ 1.0 $ 5.5 $ 787.1 $ 173.8 $ 1,153.2
2. ADD: TOTAL DEPOSITS NOT CREDITED 0.0 0.0 0.0 0.0 0.0 $ -
3. SUBTRACT: OUTSTANDING CHECKS 0.0 0.0 0.0 (568.7) (1.4) $ (729.0)
4. OTHER RECONCILING ITEMS 0.0 0.0 0.0 0.0 $ -
5. MONTH END BALANCE PER BOOKS $ 3.6 $ 1.0 $ 5.5 $ 218.4 $ 172.5 $ 424.2
6. NUMBER OF LAST CHECK WRITTEN
Outstanding Checks, Chase 312-7934031-66 26.8
Outstanding Checks, FUNB 2155300194336 132.1
Outstanding Checks, WF 4595852287 1.4
Outstanding Checks, WF 337788970 568.7
Deposits Not Credited, WF 337788970 0.0
Month End Balance Per Bank $1,153.2
</TABLE>
Exhibit 7 Page 16 of 19
<PAGE>
BROTHERS GOURMET COFFEES, INC. AND AFFILIATED DEBTORS
DISTRIBUTIONS TO INSIDERS
SEPTEMBER 30, 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>
OFFICERS:
Bilmes, Barry 10,284 - - - 53 - 188 10,524
Pennington, Linda 11,712 - - - 3,057 ( c ) - 14,769
-------------------------------------------------------------------------------------------------------------
$ 21,996 $ - $ - $ - $ 3,110 $ - $ 188 $25,293
-------------------------------------------------------------------------------------------------------------
-------------------------------------------------------------------------------------------------------------
</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.
(c) Special Marketing Analysis of the coffee business was paid and reimbursed.
- $2,940
Exhibit 8 Page 17 of 19
<PAGE>
BROTHERS GOURMET COFFEES, INC. AND AFFILIATED DEBTORS
PAYMENTS TO PROFESSIONALS (a)
FOR THE MONTH ENDING SEPTEMBER 30, 1999
<TABLE>
<CAPTION>
NAME TOTAL
---- -----
<S> <C>
Weil, Gotshal & Manges, LLP $ 178
Bernard A. Katz $ 24
Logan $ 2
White & Case, LLP $ 65
Brownstein, Hyatt, Farber & Strickland, P.C. $ 48
Richard, Layton & Finger, P.A. $ 24
The Bayard Firm $ 24
KPMG $ 8
Carrigan Chambers Dansky $ 3
Schulz, Edwards B. & Co. $ 7
------
$ 383
------
------
</TABLE>
NOTES:
(a) Payments for post-petition fees and expenses in accordance with the Interim
Compensation Order.
Exhibit 9 Page 18 of 19
<PAGE>
BROTHERS GOURMET COFFEES, INC. AND AFFILIATED DEBTORS
INSURANCE POLICIES
AS OF SEPTEMBER 30, 1999
<TABLE>
<CAPTION>
TYPE OF POLICY TERM CARRIER ANNUAL PREMIUM FREQUENCY
-------------- ---- ------- -------------- ---------
<S> <C> <C> <C> <C>
Package 8/1/99 - 5/1/00 The Rowley Agency $54,975 Quarterly
TX Auto 8/1/99 - 5/1/00 The Rowley Agency $6,652 Quarterly
Workers' Compensation 8/1/99 - 5/1/00 The Rowley Agency $69,344 Quarterly
CA Worker's Compensation 8/1/99 - 5/1/00 The Rowley Agency $8,565 Quarterly
Umbrella - $10 million 8/1/99 - 5/1/00 The Rowley Agency $6,955 Quarterly
Umbrella - $15 million 8/1/99 - 5/1/00 The Rowley Agency $5,375 Quarterly
Directors and Officers 8/25/99-10/25/99 *** AON Risk Insurance $120,000 Periodic
</TABLE>
*** NOTE: Will Be Extended As Needed
Exhibit 10 Page 19 of 19
|
|