<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): February 19, 1999
---------------------
BROTHERS GOURMET COFFEES, INC.
--------------------------------------------------
(Exact Name of Registrant as Specified in Charter)
Delaware 0-23024 52-1681708
- ------------------------- ---------------- -------------------
(State or Other Juris- (Commission File (IRS Employer
diction of Incorporation) Number) Identification No.)
2255 Glades Road
Suite 100E
Boca Raton, Florida 33431
--------------------- ----------
(Address of Principal (Zip Code)
Executive Offices)
(561) 995-2600
--------------------------------------------------
(Registrant's Telephone Number, Including Area Code)
Not Applicable
--------------------------------------------------
(Former Name or Former Address, if Changed Since Last Report)
<PAGE>
ITEM 5. OTHER EVENTS
On October 15, 1998, the Registrant filed a request with the Securities and
Exchange Commission (the "Commission") seeking confirmation from the Staff
that it would not recommend any enforcement action to the Commission if, in
lieu of filing the quarterly and annual reports on Forms 10-Q and 10-K,
respectively, that the Registrant would otherwise be required to file while
it is in reorganization proceedings pursuant to Chapter 11 of the Bankruptcy
Code, the Registrant implements modified reporting procedures. Such modified
reporting procedures consist of filing each of the Registrant's Monthly
Operating Reports under cover of Form 8-K within 15 days after such Monthly
Operating Report is due to be filed with the Bankruptcy Court and U.S.
Trustee's Office. The Commission has not yet issued its decision on the
Registrant's request; however, pending such decision, the Registrant is
implementing the proposed modified reporting procedures. Accordingly, the
Registrant's Monthly Operating Report, presenting certain financial
information of the Registrant and its subsidiaries for the period ended
January 22, 1998, 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 February 19, 1999.
ITEM 7. FINANCIAL STATEMENTS AND EXHIBITS
(c) Exhibits
99.1 Copy of the Registrant's Monthly Operating Report, for the
period ended January 22, 1999, filed with the Bankruptcy Court
and U.S. Trustee's Office on February 19, 1999.
<PAGE>
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934,
Registrant has duly caused this report to be signed on its behalf by the
undersigned hereunto duly authorized.
BROTHERS GOURMET COFFEES, INC.
(Registrant)
/s/ Barry Bilmes
------------------------------
Date: March 4, 1999 By: Barry Bilmes
Title: Vice President Finance and
Administration
<PAGE>
Debtor: Brothers Gourmet Coffees, Inc. and ACCRUAL BASIS-1
Affiliated Debtors
Case No.: 98-1970, 98-1971, 98-1973, 98-1974
OFFICE OF THE UNITED STATES TRUSTEE - REGION 3
MONTHLY OPERATING REPORT
FOR THE MONTH ENDING JANUARY 22, 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:
Vice President Finance
/s/ Barry Bilmes and Administration
- ------------------------------------------- ----------------------
ORIGINAL SIGNATURE OF RESPONSIBLE PARTY TITLE
Barry Bilmes February 19, 1999
- ------------------------------------------- ----------------------
PRINTED NAME OF RESPONSIBLE PARTY DATE
PREPARER:
- ------------------------------------------- ----------------------
ORIGINAL SIGNATURE OF PREPARER TITLE
- ------------------------------------------- ----------------------
PRINTED NAME OF PREPARER DATE
All Chapter 11 debtors must file this report with the Court and serve a
copy on the United States Trustee.
<PAGE>
Debtor: Brothers Gourmet Coffees, Inc. and ACCRUAL BASIS-2
Affiliated Debtors
COMPARATIVE BALANCE SHEET
Case No.: 98-1970, 98-1971, 98-1973, 98-1974 FIRST QUARTER
<TABLE>
<CAPTION>
ASSETS - SEE EXHIBIT 1 MONTH MONTH MONTH
<S> <C> <C> <C>
1. CASH
2. ACCOUNTS RECEIVABLE
3. INVENTORY
4. NOTES RECEIVABLE
5. PREPAID EXPENSES
6. OTHER (ATTACH LIST)
7. TOTAL CURRENT ASSETS
8. PROPERTY, PLANT & EQUIPMENT
9. LESS ACCUMULATED
DEPRECIATION/DEPLETION
10. NET PROPERTY, PLANT &
EQUIPMENT
11. DUE FROM AFFILIATES & INSIDERS
12. INTANGIBLES (ATTACH LIST)
13. OTHER (ATTACH LIST)
14. TOTAL ASSETS
POSTPETITION LIABILITIES
15. ACCOUNTS PAYABLE
16. TAXES PAYABLE
17. NOTES PAYABLE
18. PROFESSIONAL FEES
19. SECURED DEBT
20. DUE TO AFFILIATES & INSIDERS
21. OTHER (ATTACH LIST)
22. TOTAL POSTPETITION
LIABILITIES
PREPETITION LIABILITIES
23. SECURED DEBT
24. PRIORITY DEBT
25. UNSECURED DEBT
26. OTHER (ATTACH LIST)
27. TOTAL PREPETITION LIABILITIES
28. TOTAL LIABILITIES
EQUITY
29. PREPETITION OWNERS' EQUITY
30. POSTPETITION CUMULATIVE
PROFIT OR (LOSS)
31. TOTAL EQUITY (DEFECIT)
32. TOTAL LIABILITIES &
OWNERS' EQUITY
</TABLE>
<PAGE>
Debtor: Brothers Gourmet Coffees, Inc. and ACCRUAL BASIS-3
Affiliated Debtors
INCOME STATEMENT
Case No.: 98-1970, 98-1971, 98-1973, 98-1974 FIRST QUARTER
<TABLE>
<CAPTION>
REVENUES - SEE EXHIBIT 2 MONTH MONTH MONTH
<S> <C> <C> <C>
1. GROSS REVENUES
2. LESS: RETURNS & DISCOUNTS
3. NET REVENUE
COST OF GOODS SOLD
4. BEGINNING INVENTORY
5. ADD: PURCHASES
6. LESS: ENDING INVENTORY
7. TOTAL COST OF GOODS SOLD
8. GROSS PROFIT
OPERATING EXPENSES
9. OFFICER/INSIDER COMPENSATION
10. DIRECT LABOR/SALARIES
11. PAYROLL TAXES
12. RENT & LEASE EXPENSE
13. INSURANCE
14. DEPRECIATION/DEPLETION/AMORTIZATION
15. GENERAL & ADMINISTRATIVE
16. OTHER (ATTACH LIST)
17. TOTAL OPERATING EXPENSE
18. OPERATING INCOME
OTHER INCOME & EXPENSES
19. OTHER INCOME (ATTACH LIST)
20. OTHER EXPENSES (ATTACH LIST)
21. INTEREST EXPENSE
22. OTHER (ATTACH LIST)
23. NET OTHER INCOME & EXPENSES
REORGANIZATION EXPENSES
24. PROFESSIONAL FEES
25. U.S. TRUSTEE FEES
26. OTHER (ATTACH LIST)
27. TOTAL REORGANIZATION EXPENSES
28. INCOME TAX
29. NET PROFIT (LOSS)
</TABLE>
<PAGE>
Debtor: Brothers Gourmet Coffees, Inc. and ACCRUAL BASIS-4
Affiliated Debtors
Bank:
Case No.: 98-1970, 98-1971, 98-1973, 98-1974 Account No.:
Account Type:
<TABLE>
<CAPTION>
CASH RECEIPTS AND MONTH MONTH MONTH
DISBURSEMENTS - SEE EXHIBIT 3
<S> <C> <C> <C>
1. CASH-BEGINNING OF MONTH
RECEIPTS
2. CASH SALES
3. COLLECTION OF ACCOUNTS RECEIVABLE
4. LOANS & ADVANCES (ATTACH LIST)
4. SALE OF ASSETS
6. OTHER (ATTACH LIST)
7. TOTAL RECEIPTS
8. TOTAL CASH AVAILABLE
</TABLE>
CURRENT MONTH DISBURSEMENTS
<TABLE>
<CAPTION>
CHECK
NUMBER DATE PAYEE PURPOSE AMOUNT
<S> <C> <C> <C> <C>
TOTAL DISBURSEMENTS FROM BANK ACCOUNT
END OF MONTH BALANCE (SHOULD EQUAL ACCRUAL BASIS-6, LINE 5)
</TABLE>
<PAGE>
Debtor: Brothers Gourmet Coffees, Inc. and ACCRUAL BASIS-5
Affiliated Debtors
Case No.: 98-1970, 98-1971, 98-1973, 98-1974
ACCOUNTS RECEIVABLE AGING - SEE EXHIBIT 5
<TABLE>
<S> <C>
0 - 30 days old
31 - 60 days old
61 - 90 days old
91+ days old
TOTAL ACCOUNTS RECEIVABLE
AMOUNTS CONSIDERED UNCOLLECTIBLE
ACCOUNTS RECEIVABLE (NET)
</TABLE>
AGING OF POST PETITION TAXES AND PAYABLES - SEE EXHIBIT 5
<TABLE>
<CAPTION>
0-30 31-60 61-90 91+
DAYS DAYS DAYS DAYS TOTAL
<S> <C> <C> <C> <C> <C>
ACCOUNTS PAYABLE
</TABLE>
STATUS OF POST PETITION TAXES - SEE EXHIBIT 6
<TABLE>
<CAPTION>
AMOUNT
BEGINNING WITHHELD ENDING
TAX AND/OR AMOUNT TAX DELINQUENT
LIABILITY* ACCRUED PAID LIABIALITY TAXES
<S> <C> <C> <C> <C> <C>
FEDERAL
WITHHOLDING**
FICA-EMPLOYEE**
FICA-EMPLOYER**
UNEMPLOYMENT
INCOME
OTHER (ATTACH LIST)
TOTAL FEDERAL TAXES
STATE AND LOCAL
WITHHOLDING
SALES
EXCISE
UNEMPLOYMENT
REAL PROPERTY
PERSONAL PROPERTY
OTHER (ATTACH LIST)
TOTAL STATE AND LOCAL
TOTAL TAXES
</TABLE>
* The beginning tax liability should represent the liability from the prior
month or, if this is the first operating report, the amount should be zero.
** Attach photocopies of IRS Form 6123 or your FTD coupon and payment receipt
to verify payment of deposit.
<PAGE>
Debtor: Brothers Gourmet Coffees, Inc. and ACCRUAL BASIS-6
Affiliated Debtors
Case No.: 98-1970, 98-1971, 98-1973, 98-1974
THE DEBTOR IN POSSESSION MUST COMPLETE THE RECONCILIATION BELOW FOR EACH BANK
ACCOUNT, INCLUDING ALL GENERAL, PAYROLL AND TAX ACCOUNTS, AS WELL AS ALL
SAVINGS AND INVESTMENT ACCOUNTS, MONEY MARKET ACCOUNTS, CERTIFICATES OF
DEPOSIT, GOVERNMENT OBLIGATIONS, ETC. ACCOUNTS WITH RESTRICTED FUNDS SHOULD
BE IDENTIFIED BY PLACING AN ASTERISK NEXT TO THE ACCOUNT NUMBER. ATTACH
ADDITIONAL SHEETS IF NECESSARY.
<TABLE>
<CAPTION>
MONTH:
BANK RECONCILIATION - SEE EXHIBIT 7
ACCOUNT #1 ACCOUNT #2 ACCOUNT #3
A. BANK:
B. ACCOUNT NUMBER: TOTAL
C. PURPOSE (TYPE):
<S> <C> <C> <C> <C>
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>
INVESTMENT ACCOUNTS
<TABLE>
<CAPTION>
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
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 ACCRUAL BASIS-7
Affiliated Debtors
Case No.: 98-1970, 98-1971, 98-1973, 98-1974
PAYMENTS TO INSIDERS AND PROFESSIONALS
OF THE TOTAL DISBURSEMENTS SHOWN FOR THE MONTH, LIST THE AMOUNT PAID TO
INSIDERS (AS DEFINED IN SECTION 101(31)(A)-(F) OF THE U.S. BANKRUPTCY CODE)
AND TO PROFESSIONALS. ALSO, FOR PAYMENTS TO INSIDERS, IDENTIFY THE TYPE OF
COMPENSATION PAID (e.g. SALARY, BONUS, COMMISSIONS, INSURANCE, HOUSING
ALLOWANCE TRAVEL, CAR ALLOWANCE, ETC.). ATTACH ADDITIONAL SHEETS IF
NECESSARY.
<TABLE>
<CAPTION>
INSIDERS - SEE EXHIBIT 8
CUMULATIVE
TYPE OF AMOUNT UNPAID
NAME POSITION PAYMENT PAID BALANCE
<S> <C> <C> <C> <C>
1.
2.
3.
4.
5.
6. TOTAL PAYMENTS TO INSIDERS
</TABLE>
<TABLE>
<CAPTION>
PROFESSIONALS - SEE EXHIBIT 9
TYPE DATE OF COURT
OF ORDER AUTHORIZING AMOUNT AMOUNT TOTAL PAID
NAME PROFESSIONAL PAYMENT APPROVED PAID TO DATE
<S> <C> <C> <C> <C> <C>
1.
2.
3.
4.
5.
6. TOTAL PAYMENTS TO PROFESSIONALS
</TABLE>
ADEQUATE PROTECTION PAYMENTS
SCHEDULED AMOUNTS
MONTHLY PAID TOTAL
PAYMENTS DURING UNPAID
NAME OF CREDITOR DUE MONTH POSTPETITION
THE DEBTOR MADE NO ADEQUATE PROTECTION
PAYMENTS IN JANUARY 1999.
<PAGE>
Debtor: Brothers Gourmet Coffees, Inc. and ACCRUAL BASIS-8
Affiliated Debtors
Case No.: 98-1970, 98-1971, 98-1973, 98-1974
<TABLE>
<CAPTION>
QUESTIONNAIRE YES NO
<S> <C> <C>
1. HAVE ANY ASSETS BEEN SOLD OR TRANSFERRED OUTSIDE THE NORMAL COURSE OF BUSINESS
THIS REPORTING PERIOD? X
2. HAVE ANY FUNDS BEEN DISBURSED FROM ANY ACCOUNT OTHER THAN A DEBTOR IN POSSESSION
ACCOUNT? X
3. ARE ANY POSTPETITION RECEIVABLES (ACCOUNTS, NOTES, OR LOANS) DUE FROM RELATED PARTIES? X
4. HAVE ANY PAYMENTS BEEN MADE ON PREPETITION LIABILITIES THIS REPORTING PERIOD? X (a)
5. HAVE ANY POSTPETITION LOANS BEEN RECEIVED BY THE DEBTOR FROM ANY PARTY? X (b)
6. ARE ANY POSTPETITION PAYROLL TAXES PAST DUE? X
7. ARE ANY POSTPETITION STATE OR FEDERAL INCOME TAXES PAST DUE? X
8. ARE ANY POSTPETITION REAL ESTATE TAXES PAST DUE? X
9. ARE ANY OTHER POSTPETITION TAXES PAST DUE? X
10. ARE ANY AMOUNTS OWED TO POSTPETITION CREDITORS DELINQUENT? X
11. HAVE ANY PREPETITION TAXES BEEN PAID DURING THE REPORTING PERIOD? X (c)
12. ARE ANY WAGE PAYMENTS PAST DUE? X
</TABLE>
IF THE ANSWER TO ANY OF THE ABOVE QUESTIONS IS "YES," PROVIDE A DETAILED
EXPLANATION OF EACH ITEM. ATTACH ADDITIONAL SHEETS IF NECESSARY.
(a) The Debtors are authorized to pay certain pre-petition liabilities under
"First Day" Orders. Only pre-petition payments so authorized have been
made and reported in accordance with such orders.
(b) Loans received in accordance with Debtor-In-Possession Financing Agreement.
Approved by the Court.
(c) Various de minimus pre-petition business license and franchise fees paid.
Such license and franchise fees were necessary to continue to conduct
business in certain jurisdictions
<TABLE>
<CAPTION>
INSURANCE YES NO
<S> <C> <C>
1. ARE WORKERS COMPENSATION, GENERAL LIABILITY AND OTHER
NECESSARY INSURANCE COVERAGES IN EFFECT? X
2. ARE ALL PREMIUM PAYMENTS PAID CURRENT? X
3. PLEASE ITEMIZE POLICIES BELOW.
</TABLE>
IF THE ANSWER TO ANY OF THE ABOVE QUESTIONS IS "NO," OR IF ANY POLICIES HAVE
BEEN CANCELLED OR NOT RENEWED DURING THIS REPORTING PERIOD, PROVIDE AN
EXPLANATION BELOW. ATTACH ADDITIONAL SHEETS IF NECESSARY.
- --------------------------------------------------------------------------
- --------------------------------------------------------------------------
<TABLE>
<CAPTION>
INSURANCE POLICIES - SEE EXHIBIT 10
TYPE OF PAYMENT AMOUNT
POLICY CARRIER PERIOD COVERED & FREQUENCY
<S> <C> <C> <C>
</TABLE>
<PAGE>
Debtor: Brothers Gourmet Coffees, Inc. and ACCRUAL BASIS-9
Affiliated Debtors
Case No.: 98-1970, 98-1971, 98-1973, 98-1974
<TABLE>
<CAPTION>
PERSONNEL
FULL/PART TIME
<S> <C>
1. Total number of employees at beginning of period 226
2. Number of employees hired during the period 4
3. Number of employees terminated or resigned during the period 7
4. Total number of employees on payroll at end of period 223
</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 JANUARY 22, 1999
($000'S)
<TABLE>
<S> <C>
Current Assets:
Petty cash $ 3
Cash in bank 638
Accounts receivable 5,794
Inventories 4,658
Prepaid expenses and other assets 280
---------
Current assets 11,373
Plant and Equipment, net 11,707
Other Assets:
Debt acquisition costs 1,096
Prepaid promotional expenses 2,445
Other assets 532
---------
Total assets $ 27,153
---------
---------
Current Liabilities:
Accounts payable (post-petition) $ 856
Accrued expenses (post-petition) 2,945
Term loan note 15,493
Revolving loan 369
---------
Current liabilities 19,663
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) 17
Accounts payable (pre-petition) 5,855
Accrued expenses (pre-petition) 2,064
Accrued loss on future purchase
commitments (pre-petition) 207
Allowance for operating losses of
discontinued segment (pre-petition) 1,938
---------
Liabilities subject to compromise 10,081
Minority interests 50
Shareholders' Equity:
Common stock 1
Additional paid-in capital 151,693
Accumulated deficit in earnings (166,204)
Treasury stock (450)
---------
Total Shareholders' Equity (14,960)
---------
Total Liabilities and Shareholders' Equity $ 27,153
---------
---------
</TABLE>
Exhibit 1
<PAGE>
BROTHERS GOURMET COFFEES, INC. AND AFFILIATED DEBTORS
CONSOLIDATED INCOME STATEMENT - UNAUDITED
FOR THE MONTH ENDED JANUARY 22, 1999
($000'S)
<TABLE>
<S> <C>
Sales $ 3,785
Cost of goods sold 2,034
-------
Gross profit 1,751
Operating expenses
Customer 804
Sales 179
Distribution 354
Marketing 137
General administrative 700
MIS administrative 81
-------
Total operating expenses 2,255
Operating income (loss) (504)
Interest expense 157
Debt acquisition and restructuring costs 3
Other (income) expense (6)
Purchase commitment (gains) losses (105)
-------
Net income (loss) $ (553)
-------
-------
</TABLE>
Exhibit 2
<PAGE>
BROTHERS GOURMET COFFEES, INC. AND AFFILIATED DEBTORS
POST-PETITION CASH RECEIPTS AND DISBURSEMENTS
FOR THE MONTH ENDED JANUARY 22, 1999
($000'S)
<TABLE>
<S> <C>
12/26/98
1/22/99
--------
RECEIPTS:
Lockbox $ 4,929
Credit Card 1
Other 248
-------
5,178
DISBURSEMENTS:
Green Coffee 1,386
Packaging & Flavoring 405
Payroll & Benefits 740
Plant Overhead 109
Customer Expenses 214
Distribution Costs 129
Sales Costs 30
Marketing 30
Management Info. Systems 49
Administrative 111
Professional Fees 550
Interest Expense & Bank Fees 180 (a)
Slotting Fees 375
Capital Expenditures 68
Other 1
-------
Total Disbursements 4,377
Net Cash Flow Prior to Goldman Activity 801
Cash to Goldman (5,359)
Cash from Goldman 3,977
-------
Net Cash Flow (581)
Beginning Cash 387
-------
Ending Cash Before Float (194)
Outstanding Check Float 817
-------
Cash Ledger Balance per Bank $ 623
-------
-------
GOLDMAN DIP:
Beginning Balance $ 1,751
Drawdowns 3,977
Paybacks (5,359)
-------
Ending Balance $ 369
-------
-------
</TABLE>
NOTES:
(a) $85,967 of interest paid during the week of 1/23 through 1/29 was
retroactively charged by Goldman Sachs Credit Partners to the week
of 1/16 through 1/22.
Exhibit 3
<PAGE>
BROTHERS GOURMET COFFEES, INC. AND AFFILIATED DEBTORS
AGING OF ACCOUNTS RECEIVABLE
AS OF JANUARY 22, 1999
($000's)
<TABLE>
<CAPTION>
Past Due
---------------------------------
Allowance for Net
30 - 60 60 - 90 Over 90 Total Accounts Returns and Bad Accounts
0 - 30 Days Days Days (a) Receivable Debts Receivable
- ----------- ------- ------- ------- -------------- ---------------- ----------
<S> <C> <C> <C> <C> <C> <C>
$ 4,616 $ 821 $ 213 $ 727 $ 6,377 $ (583) $ 5,794
</TABLE>
NOTES:
(a) The Debtor has subsequently collected approximately $143,000 of this
past-due amount.
Exhibit 4
<PAGE>
BROTHERS GOURMET COFFEES, INC AND AFFILIATED DEBTORS
AGING OF ACCOUNTS PAYABLE
AS OF JANUARY 22, 1999
($ 000'S)
<TABLE>
<CAPTION>
Total
Accounts
0-30 Days 31-60 Days 61-90 Days 91+ Days Payable
- ---------- ----------- ----------- --------- -------
<S> <C> <C> <C> <C>
$ (271) $ 48 $ 318 $ 113 $ 208 (a)
Outstanding Checks, Chase Account No. 312-7934031-66 613
Outstanding Checks, FUNB Account No. 2079900003505 35
-----
Total Accounts Payable $ 856
-----
-----
</TABLE>
NOTES:
(a) Post-petition accounts payable debit balance results from prepayments
for inventory/materials not yet received.
Exhibit 5
<PAGE>
BROTHERS GOURMET COFFEES, INC. AND AFFILIATED DEBTORS
STATUS OF POST-PETITION TAXES
AS OF JANUARY 22, 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) $ 36.0 $ 38.5 $ 36.1 $ 38.4 $ --
Unemployment (a) 1.1 0.9 1.0 1.0 --
-------- ------- ------- ------- -----
TOTAL FEDERAL 37.1 39.4 37.1 39.4 --
STATE
Withholding (a) 1.9 0.9 0.8 2.1 --
Unemployment (a) 2.5 3.1 3.5 2.1 --
Income 3.1 -- -- 3.1 --
Property 114.7 29.7 6.6 137.8 --
Sales 70.8 7.5 11.2 67.2 --
Franchise (b) 80.7 17.0 -- 97.7 --
-------- ------- ------- ------- -----
TOTAL STATE AND LOCAL 273.7 58.2 22.1 310.0 --
-------- ------- ------- ------- -----
TOTAL TAXES $ 310.8 $ 97.6 $ 59.2 $ 349.4 $ --
-------- ------- ------- ------- -----
-------- ------- ------- ------- -----
</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 JANUARY 22, 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 $ 70.5 $ 179.2 $ 324.6 $ 83.8 $ 69.3
2. ADD: TOTAL DEPOSITS NOT CREDITED 0.0 0.0 0.0 0.0 0.0
3. SUBTRACT: OUTSTANDING CHECKS 0.0 0.0 (613.0) (34.5) (81.3)
4. OTHER RECONCILING ITEMS (9.5) (14.1) 0.5 0.0 0.2
5. MONTH END BALANCE PER BOOKS $ 61.0 $ 165.1 $ (287.9) $ 49.3 $ (11.8)
6. NUMBER OF LAST CHECK WRITTEN 95106 88744 9345
<CAPTION>
ACCOUNT #6 ACCOUNT #7 ACCOUNT #8
A. BANK: FUNB FUNB FUNB
B. ACCOUNT NUMBER: 2090000011463 2090000011450 2090000802410 TOTAL
C. PURPOSE (TYPE): DEPOSITORY DEPOSITORY CHECKING
<S> <C> <C> <C> <C>
1. BALANCE PER BANK STATEMENT $ 9.1 $ 3.1 $ 4.0 $ 743.6
2. ADD: TOTAL DEPOSITS NOT CREDI 0.0 0.0 2.5 2.5
3. SUBTRACT: OUTSTANDING CHECKS 0.0 0.0 (1.6) (730.4)
4. OTHER RECONCILING ITEMS 0.0 0.0 (2.2) (25.1)
5. MONTH END BALANCE PER BOOKS $ 9.1 $ 3.1 $ 2.7 $ (9.4)
6. NUMBER OF LAST CHECK WRITTEN 1450
Outstanding Checks, Chase 312-7934031-66 613.0
Outstanding Checks, FUNB 2079900003505 34.5
Month End Balance Per Books $ 638.1
</TABLE>
NOTES:
FUNB - First Union National Bank
Exhibit 7
<PAGE>
BROTHERS GOURMET COFFEES, INC. AND AFFILIATED DEBTORS
DISTRIBUTIONS TO INSIDERS
JANUARY 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 $ -- $ 500 $ -- $ -- $ -- $ -- $ -- $ 500
Bolduc, J.P -- 500 -- -- -- -- -- 500
Moore, James -- 500 -- -- -- -- -- 500
Rudy, Ray -- -- -- -- -- -- -- --
OFFICERS:
Breen, Donald 19,403 -- -- -- 1,291 -- 192 20,886
Bilmes, Barry 9,755 -- -- -- 213 -- 144 10,112
Pennington, Linda 8,151 -- -- -- 199 -- -- 8,350
Davis, Eric 7,055 -- -- -- 364 -- 87 7,506
Schoonover, Randy 54 -- -- -- -- -- -- 54
------- ------- ----- ------ ------- ----- ----- --------
$44,418 $ 1,500 $ -- $ -- $ 2,067 $ -- $ 423 $ 48,408
------- ------- ----- ------ ------- ----- ----- --------
------- ------- ----- ------ ------- ----- ----- --------
</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)
JANUARY 1999
<TABLE>
<CAPTION>
NAME TOTAL
<S> <C>
Brownstein, Hyatt, Farber & Strickland, P.C $ 56,056
Logan and Company 6,739
M.R. Weiser & Co. LLP 60,079
PricewaterhouseCoopers, LLP 311,959 (b)
Richards, Layton & Finger, P.A 9,614
The Bayard Firm 3,292
U.S. Trustee 10,750
Weil, Gotshal & Manges, LLP 65,543
White & Case, LLP 26,043
---------
$ 550,075
---------
---------
</TABLE>
NOTES:
(a) Payments for post-petition fees and expenses in accordance with the
Interim Compensation Order.
(b) Includes $205,874 payment for outstanding September and October fees.
Exhibit 9
<PAGE>
BROTHERS GOURMET COFFEES, INC. AND AFFILIATED DEBTORS
INSURANCE POLICIES
AS OF JANUARY 22, 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 Offficers 2/25/98-2/25/99 National Union $120,000 Annually
</TABLE>
Exhibit 10
