<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): June 24, 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 May
31, 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 June 24, 1999.
ITEM 7. FINANCIAL STATEMENTS AND EXHIBITS
(c) Exhibits
99.1 Copy of the Registrant's Monthly Operating Report, for the period
ended May 31, 1999, filed with the Bankruptcy Court and U.S.
Trustee's Office on June 24, 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: June 30, 1999 By: Barry Bilmes
Title: Vice President Finance and Administration
<PAGE>
DEBTOR: BROTHERS GOURMET COFFEES, INC. AND AFFILIATED DEBTORS ACCRUAL BASIS-1
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 MAY 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.
NOTE: THE COMPANY WAS GRANTED PERMISSION FROM HUGH WARD, U.S. TRUSTEES
OFFICE, TO FILE THE APRIL 30, 1999 MONTHLY OPERATING REPORT AFTER THE MAY 20,
1999 DEADLINE BECAUSE OF TEMPORARY COMPUTER SYSTEM DELAYS.
RESPONSIBLE PARTY:
/s/ Larry Smith Controller
- -------------------------------------------- -------------
ORIGINAL SIGNATURE OF RESPONSIBLE PARTY TITLE
Larry Smith 6/24/99
- -------------------------------------------- -------------
PRINTED NAME OF RESPONSIBLE PARTY DATE
PREPARER:
/s/ Larry Smith Controller
- -------------------------------------------- -------------
ORIGINAL SIGNATURE OF PREPARER TITLE
Larry Smith 6/24/99
- -------------------------------------------- -------------
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 AFFILIATED DEBTORS ACCRUAL BASIS-2
COMPARATIVE BALANCE SHEET
CASE NO.: 98-1970, 98-1971, 98-1973, 98-1974 SECOND 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 AFFILIATED DEBTORS ACCRUAL BASIS-3
INCOME STATEMENT
CASE NO.: 98-1970, 98-1971, 98-1973, 98-1974 SECOND 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>
<TABLE>
<CAPTION>
DEBTOR: BROTHERS GOURMET COFFEES, INC. AND AFFILIATED DEBTORS ACCRUAL BASIS-4
BANK:
CASE NO.: 98-1970, 98-1971, 98-1973, 98-1974 ACCOUNT NO.:
ACCOUNT TYPE:
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
CURRENT MONTH DISBURSEMENTS
CHECK
NUMBER DATE PAYEE PURPOSE AMOUNT
TOTAL DISBURSEMENTS FROM BANK ACCOUNT
END OF MONTH BALANCE (SHOULD EQUAL ACCRUAL BASIS-6, LINE 5)
</TABLE>
<PAGE>
DEBTOR: BROTHERS GOURMET COFFEES, INC. AND AFFILIATED DEBTORS ACCRUAL BASIS-5
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)
</TABLE>
<TABLE>
<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
<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. AND AFFILIATED DEBTORS ACCRUAL BASIS-6
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>
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
<CAPTION>
INVESTMENT ACCOUNTS
- ----------------------------------------------------------------------------------------------------
DATE OF TYPE OF PURCHASE CURRENT
BANK ACCOUNT NAME & NUMBER PURCHASE INSTRUMENT PRICE VALUE
- ----------------------------------------------------------------------------------------------------
7.
8.
9.
10.
11. TOTAL INVESTMENTS
- -----------------------------------
CASH
- -----------------------------------
12. CURRENCY ON HAND
13. TOTAL CASH-END OF MONTH (Total of lines 5, 11, & 12)
</TABLE>
<PAGE>
DEBTOR: BROTHERS GOURMET COFFEES, INC. AND AFFILIATED DEBTORS ACCRUAL BASIS-7
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
<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 APRIL 1999.
</TABLE>
<PAGE>
DEBTOR: BROTHERS GOURMET COFFEES, INC. AND AFFILIATED DEBTORS ACCRUAL BASIS-8
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 (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 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>
</TABLE>
<PAGE>
DEBTOR: BROTHERS GOURMET COFFEES, INC. AND AFFILIATED DEBTORS ACCRUAL BASIS-9
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 194
2. Number of employees hired during the period 3
3. Number of employees terminated or resigned during the period 127
4. Total number of employees on payroll at end of period 70
</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 MAY 31, 1999
($000'S)
<TABLE>
<S> <C>
Current Assets:
Petty cash $ 1
Cash in bank 4,299
Accounts receivable 1,194
Inventories 1,101
Prepaid expenses and other assets 103
--------------
Current assets 6,698
Plant and Equipment, net 3,723
Other Assets:
Debt acquisition costs 1,096
Prepaid promotional expenses -
Other assets 287
--------------
Total assets $ 11,804
--------------
--------------
Current Liabilities:
Accounts payable (post-petition) $ 1,736
Accrued expenses (post-petition) 1,024
Term loan note -
Revolving loan -
--------------
Current liabilities 2,760
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 (163,845)
Treasury stock (450)
--------------
Total Shareholders' Equity (12,601)
--------------
Total Liabilities and Shareholders' Equity $ 11,804
--------------
--------------
</TABLE>
Exhibit 1
<PAGE>
BROTHERS GOURMET COFFEES, INC. AND AFFILIATED DEBTORS
CONSOLIDATED INCOME STATEMENT - UNAUDITED
FOR THE MONTH ENDED MAY 31, 1999
($000'S)
<TABLE>
<S> <C>
Sales $ 413
Cost of goods sold 453
--------------
Gross profit (40)
Operating expenses
Customer 5
Sales 67
Distribution (27)
Marketing 30
General administrative 676
MIS administrative 59
--------------
Total operating expenses 810
Operating income (loss) (850)
(Gain) loss on sale of assets 380
Interest expense -
(Gain) loss on purchase commitments -
Other (income) expense -
--------------
Net income (loss) $ (1,230)
--------------
--------------
</TABLE>
Exhibit 2
<PAGE>
BROTHERS GOURMET COFFEES, INC. AND AFFILIATED DEBTORS
POST-PETITION CASH RECEIPTS AND DISBURSEMENTS
FOR THE MONTH ENDED MAY 31, 1999
($000'S)
<TABLE>
<CAPTION>
4/30/99
5/31/99
<S> <C>
RECEIPTS:
Lockbox $ 32
Credit Card -
Other(a) 2,308
----------
2,340
DISBURSEMENTS:
Green Coffee 187
Packaging & Flavoring 325
Payroll & Benefits 1,527
Plant Overhead 33
Customer Expenses -
Distribution Costs 79
Sales Costs 8
Marketing -
Management Info. Systems 5
Administrative 165
Professional Fees 836
Interest Expense & Bank Fees -
Slotting Fees -
Capital Expenditures
----------
Other 445
----------
Total Disbursements 3,610
Net Cash Flow Prior to Goldman Activity (1,270)
Cash to Goldman -
Cash from Goldman -
----------
Net Cash Flow (1,270)
Beginning Cash 4,251
----------
Ending Cash Before Float 2,981
Outstanding Check Float 1,318
----------
Cash Ledger Balance per Bank $ 4,299
----------
----------
GOLDMAN DIP:
Beginning Balance $ -
Drawdowns -
Paybacks -
----------
Ending Balance $ -
----------
----------
</TABLE>
(a)--Includes proceeds from the sale of certain assets to
The Proctor & Gamble Company of $1,543K
Exhibit 3
<PAGE>
BROTHERS GOURMET COFFEES, INC. AND AFFILIATED DEBTORS
AGING OF ACCOUNTS RECEIVABLE
AS OF MAY 31, 1999
($000'S)
<TABLE>
<CAPTION>
Past Due
------------------------------- Allowance for Net
0 - 30 30 - 60 60 - 90 Over 90 Total Accounts Returns and Bad Accounts
Days(a) Days Days (a) Receivable Debts Receivable
- ------- ------- ------- ------- -------------- --------------- ----------
<S> <C> <C> <C> <C> <C> <C>
$ 1,012 $ 181 $ - $ - $ 1,193 $ - $ 1,193
</TABLE>
Note:(a)--The receivable consists primarily of monies held in escrow related to
the sale of certain assets to The Proctor and Gamble Company
Exhibit 4
<PAGE>
BROTHERS GOURMET COFFEES, INC AND AFFILIATED DEBTORS
Aging of Accounts Payable
As of May 31, 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>
$ 165 $ 30 $ 20 $ 203 $ 418 (a)
Outstanding Checks, Chase Account No. 312-7934031-66 1,318
Outstanding Checks, FUNB Account No. 2079900003505 -
-------
Total Accounts Payable $ 1,736
-------
-------
</TABLE>
NOTES:
(a) Post-petition accounts payable debit balance results from prepayments for
inventory/materials not yet received. (includes est.)
(b) Amounts over 90 consist primarily of 20% holdback on professional fees.
Exhibit 5
<PAGE>
BROTHERS GOURMET COFFEES, INC. AND AFFILIATED DEBTORS
STATUS OF POST-PETITION TAXES
AS OF MAY 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) $ 32.0 $ - $ 28.7 $ 3.3 $ -
Unemployment (a) 0.1 - 0.1 - -
--------- -------- ------- --------- ----
TOTAL FEDERAL 32.1 - 28.8 3.3 -
STATE
Withholding (a) 2.1 - 1.1 1.0 -
Unemployment (a) 0.8 - 0.7 0.1 -
Income 2.8 - - 2.8 -
Property 197.8 - 72.8 125.0 -
Sales 77.7 - 0.7 77.0 -
Franchise (b) 128.2 - - 128.2 -
--------- -------- ------- --------- ----
TOTAL STATE AND LOCAL 409.4 - 75.3 334.1 -
--------- -------- ------- --------- ----
TOTAL TAXES $ 441.5 $ - $ 104.1 $ 337.4 $ -
--------- -------- ------- --------- ----
--------- -------- ------- --------- ----
</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 MAY 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 312-7934031-66 2079900003505 2155300194336
----------------------------------------------------------------------------------
C. PURPOSE (TYPE): DEPOSITORY DEPOSITORY CHECKING CHECKING PAYROLL
- ------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
1. BALANCE PER BANK STATEMENT $ - $ (16.0) $ 761.2 $ - $ 764.5
- ------------------------------------------------------------------------------------------------------------------------------
2. ADD: TOTAL DEPOSITS NOT CREDITED 0.0 0.0 0.0 0.0 0.0
- ------------------------------------------------------------------------------------------------------------------------------
3. SUBTRACT: OUTSTANDING CHECKS 0.0 0.0 (555.6) 0.0 (623.8)
- ------------------------------------------------------------------------------------------------------------------------------
4. OTHER RECONCILING ITEMS 0.0 0.0 0.0 0.0 0.0
- ------------------------------------------------------------------------------------------------------------------------------
5. MONTH END BALANCE PER BOOKS $ - $ (16.0) $ 205.6 $ - $ 140.7
- ------------------------------------------------------------------------------------------------------------------------------
6. NUMBER OF LAST CHECK WRITTEN 96152 88744 9674
- ------------------------------------------------------------------------------------------------------------------------------
<CAPTION>
----------------------------------------------------------------------------
ACCOUNT #6 ACCOUNT #7 ACCOUNT #8 ACCOUNT #9 ACCOUNT #10
- -------------------------------------------------------------------------------------------------------------------
A. BANK: FUNB FUNB FUNB WELLS FARGO WELLS FARGO
----------------------------------------------------------------------------
B. ACCOUNT NUMBER: 2090000011463 2090000011450 2090000802410 337788970 4595852287 TOTAL
----------------------------------------------------------------------------
C. PURPOSE (TYPE): DEPOSITORY DEPOSITORY CHECKING CHECKING PAYROLL
- ------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
1. BALANCE PER BANK STATEMENT $ 9.3 $ 5.4 $ 3.6 $ 2,481.8 $ 289.6 $ 4,299.4
- ------------------------------------------------------------------------------------------------------------------------------
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 (34.8) (104.0) $(1,318.2)
- ------------------------------------------------------------------------------------------------------------------------------
4. OTHER RECONCILING ITEMS 0.0 0.0 0.0 0.0 $ -
- ------------------------------------------------------------------------------------------------------------------------------
5. MONTH END BALANCE PER BOOKS $ 9.3 $ 5.4 $ 3.6 $ 2,447.0 $ 185.6 $ 2,981.2
- ------------------------------------------------------------------------------------------------------------------------------
6. NUMBER OF LAST CHECK WRITTEN
- ------------------------------------------------------------------------------------------------------------------------------
<CAPTION>
<S> <C>
Outstanding Checks, Chase 312-7934031-66 555.6
------------------------------------------------------------------------------------
Outstanding Checks, FUNB 2079900003505 0.0
------------------------------------------------------------------------------------
Month End Balance Per Books $3,536.8
------------------------------------------------------------------------------------
</TABLE>
NOTES:
FUNB - First Union National Bank
Exhibit 7
<PAGE>
BROTHERS GOURMET COFFEES, INC. AND AFFILIATED DEBTORS
DISTRIBUTIONS TO INSIDERS
MAY, 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 429,675 - - - 3,205 - 240 433,120
Bilmes, Barry 157,685 - - - 1,542 - 144 159,371
Pennington, Linda 10,096 - - - - - - 10,096
Davis, Eric 58,143 - - - 708 - 108 58,959
- - - - - - - -
----------------------------------------------------------------------------------------------------------
$ 655,599 $ - $ - $ - $ 5,455 $ - $ 492 $ 661,546
----------------------------------------------------------------------------------------------------------
----------------------------------------------------------------------------------------------------------
</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)
MAY, 1999
<TABLE>
<CAPTION>
NAME TOTAL
---- -----
<S> <C>
Weil, Gotshal & Manges, LLP $ 296,837
Bernard A. Katz 86,358
Logan 7,099
White & Case, LLP 92,960
PricewaterhouseCoopers, LLP 199,805
Brownstein, Hyatt, Farber & Strickland, P.C. 103,958
Richard, Layton & Finger, P.A. 22,809
The Bayard Firm 26,238
Edwards, Ballard, Sturm, Clark & Keim, P.A. 471
----------
$ 836,535
----------
----------
</TABLE>
NOTES:
(a) Payments for post-petition fees and expenses in accordance with the
Interim Compensation Order.
Exhibit 9
<PAGE>
BROTHERS GOURMET COFFEES, INC. AND AFFILIATED DEBTORS
INSURANCE POLICIES
AS OF MAY 30, 1999
<TABLE>
<CAPTION>
TYPE OF POLICY TERM CARRIER ANNUAL PREMIUM FREQUENCY
-------------- ---- ------- -------------- ---------
<S> <C> <C> <C> <C>
Package 7/1/98-6/30/99 Royal & Sun Alliance $ 158,445 Monthly
TX Auto 7/1/98-6/30/99 Royal & Sun Alliance $ 19,166 Monthly
Foreign Liability 7/1/98-6/30/99 Royal & Sun Alliance $ 2,500 Monthly
Workers' Compensation 7/1/98-6/30/99 Royal & Sun Alliance $ 199,875 Monthly
CA Worker's Compensation 7/1/98-6/30/99 Royal & Sun Alliance $ 24,673 Monthly
Umbrella - $10 million 7/1/98-6/30/99 Royal & Sun Alliance $ 20,042 Monthly
Umbrella - $15 million 7/1/98-6/30/99 Royal & Sun Alliance $ 15,500 Annually
Directors and Officers 4/26/99-8/31/99 National Union $ 120,000 Periodic
</TABLE>
Exhibit 10
<PAGE>
OFFICE OF THE U.S. TRUSTEE - REGION 3
During the ordinary course of business each year, the company files in excess
of forty income and franchise tax returns, 260 payroll tax returns and 500
sales and use tax returns. Management believes it is current on all of these
filings and post-petition taxes payable.
/s/ Larry Smith
Larry Smith
Controller
