<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): January 20, 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
December 25, 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 January 20, 1999.
ITEM 7. FINANCIAL STATEMENTS AND EXHIBITS
(c) Exhibits
99.1 Copy of the Registrant's Monthly Operating Report, for the period
ended December 25, 1999, filed with the Bankruptcy Court and U.S.
Trustee's Office on January 20, 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: February 2, 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 DECEMBER 25, 1998
<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 January 20, 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 AFFILIATED DEBTORS ACCRUAL BASIS-2
COMPARATIVE BALANCE SHEET
CASE NO.: 98-1970, 98-1971, 98-1973, 98-1974 FOURTH 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 FOURTH 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 AFFILIATED DEBTORS ACCRUAL BASIS-4
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>
<TABLE>
<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. AND AFFILIATED DEBTORS ACCRUAL BASIS-5
CASE NO.: 98-1970, 98-1971, 98-1973, 98-1974
ACCOUNTS RECEIVABLE AGING - SEE EXHIBIT 4
<TABLE>
<S> <C>
0 - 30 days old
31 - 60 days old
61 - 90 days old
91+ days old
TOTAL ACCOUNTS RECEIVABLE
AMOUNTS CONSIDERED UNCOLLECTIBLE
ACCOUNTS RECEIVABLE (NET)
</TABLE>
AGING OF POST PETITION TAXES AND PAYABLES - SEE EXHIBIT 5
<TABLE>
<CAPTION>
0-30 31-60 61-90 91+
DAYS DAYS DAYS DAYS TOTAL
<S> <C> <C> <C> <C> <C>
ACCOUNTS PAYABLE
</TABLE>
STATUS OF POST PETITION TAXES - SEE EXHIBIT 6
<TABLE>
<CAPTION>
BEGINNING WITHHELD ENDING
TAX AND/OR AMOUNT TAX DELINQUENT
LIABILITY* ACCRUED PAID LIABILITY TAXES
<S> <C> <C> <C> <C> <C>
FEDERAL
WITHHOLDING**
FICA-EMPLOYEE**
FICA-EMPLOYER**
UNEMPLOYMENT
INCOME
OTHER (ATTACH LIST)
TOTAL FEDERAL TAXES
STATE AND LOCAL
WITHHOLDING
SALES
EXCISE
UNEMPLOYMENT
REAL PROPERTY
PERSONAL PROPERTY
OTHER (ATTACH LIST)
TOTAL STATE AND LOCAL
TOTAL TAXES
</TABLE>
* The beginning tax liability should represent the liability from the prior
month or, if this is the first operating report, the amount should be zero.
** Attach photocopies of IRS Form 6123 or your FTD coupon and payment receipt
to verify payment of deposit.
<PAGE>
DEBTOR: BROTHERS GOURMET COFFEES, INC. AND 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 TOTAL
<S> <C> <C> <C> <C>
A. BANK:
B. ACCOUNT NUMBER:
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
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
</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 DECEMBER 1998.
</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
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 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 224
2. Number of employees hired during the period 2
3. Number of employees terminated or resigned during the period 0
4. Total number of employees on payroll at end of period 226
</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 DECEMBER 25, 1998
($000's)
<TABLE>
<S> <C>
Current Assets:
Petty cash $ 2
Cash in bank 950
Accounts receivable 7,018
Inventories 4,580
Prepaid expenses and other assets 380
---------
Current assets 12,930
Plant and Equipment, net 11,990
Other Assets:
Debt acquisition costs 1,100
Prepaid promotional expenses 2,612
Other assets 567
---------
Total assets $ 29,199
---------
---------
Current Liabilities:
Accounts payable (post-petition) $ 1,042
Accrued expenses (post-petition) 2,630
Term loan note 15,493
Revolving loan 1,751
---------
Current liabilities 20,916
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) 22
Accounts payable (pre-petition) 5,849
Accrued expenses (pre-petition) 2,131
Accrued loss on future purchase
commitments (pre-petition) 312
Allowance for operating losses of
discontinued segment (pre-petition) 1,958
---------
Liabilities subject to compromise 10,272
Minority interests 99
Shareholders' Equity:
Common stock 1
Additional paid-in capital 151,693
Accumulated deficit in earnings (165,651)
Treasury stock (450)
---------
Total Shareholders' Equity (14,407)
---------
Total Liabilities and Shareholders' Equity $ 29,199
---------
---------
</TABLE>
Page 1 of 1
Exhibit 1
<PAGE>
BROTHERS GOURMET COFFEES, INC. AND AFFILIATED DEBTORS
CONSOLIDATED INCOME STATEMENT - UNAUDITED
FOR THE MONTH ENDED DECEMBER 25, 1998
($000'S)
<TABLE>
<S> <C>
Sales $ 6,064
Cost of goods sold 3,095
-------
Gross profit 2,969
Operating expenses
Customer 883
Sales 226
Distribution 482
Marketing 115
General administrative 361
MIS administrative 86
-------
Total operating expenses 2,153
Operating income (loss) 816
Interest expense 202
Debt acquisition and restructuring costs 431
Other (income) expense (a) (162)
Purchases commitment (gains) losses (325)
-------
Net income (loss) $ 670
=======
</TABLE>
NOTES:
(a) Savemart settlement.
Page 1 of 1
Exhibit 2
<PAGE>
BROTHERS GOURMET COFFEES, INC. AND AFFILIATED DEBTORS
POST-PETITION CASH RECEIPTS AND DISBURSEMENTS
FOR THE MONTH ENDED DECEMBER 25, 1998
($000'S)
<TABLE>
<CAPTION>
-------------
11/21/98
12/25/98
-------------
<S> <C>
RECEIPTS:
Lockbox $ 5,423
Credit Card 3
Other 12
-------
5,438
DISBURSEMENTS:
Green Coffee 1,313
Packaging & Flavoring 428
Payroll & Benefits 1,003
Plant Overhead 147
Customer Expenses 205
Distribution Costs 352
Sales Costs 43
Marketing 71
Management Info. Systems 28
Administrative 107
Professional Fees 378
Interest Expense & Bank Fees 704
Slotting Fees 40
Capital Expenditures 72
-------
Total Disbursements 4,891
Net Cash Flow Prior to Goldman Activity 547
Cash to Goldman (5,554)
Cash from Goldman 5,404
-------
Net Cash Flow 397
Beginning Cash (10)
-------
Ending Cash Before Float 387
Outstanding Check Float 559
-------
Cash Ledger Balance per Bank $ 946
=======
GOLDMAN DIP:
Beginning Balance $ 1,901
Drawdowns 5,404
Paybacks (5,554)
-------
Ending Balance $ 1,751
=======
</TABLE>
1 of 1
Exhibit 3
<PAGE>
BROTHERS GOURMET COFFEES, INC. AND AFFILIATED DEBTORS
AGING OF ACCOUNTS RECEIVABLE
AS OF DECEMBER 25, 1998
($000's)
<TABLE>
<CAPTION>
Past Due
---------------------------------------------------------- Total Accounts Allowance for Returns Net Accounts
0 - 30 Days 30 - 60 Days 60 - 90 Days Over 90 (a) Receivable and Bad Debts Receivable
- --------------- -------------- -------------- ------------ ---------- ------------- ----------
<S> <C> <C> <C> <C> <C> <C>
$ 5,682 $ 1,220 $ 285 $ 550 $ 7,737 $ (719) $ 7,018
</TABLE>
NOTES:
(a) The Debtor subsequently received approximately $268,000 of this past-due
amount.
Page 1 of 1
Exhibit 4
<PAGE>
BROTHERS GOURMET COFFEES, INC AND AFFILIATED DEBTORS
AGING OF ACCOUNTS PAYABLE
AS OF DECEMBER 25, 1998
($ 000's)
<TABLE>
<CAPTION>
TOTAL
ACCOUNTS
0-30 DAYS 31-60 DAYS 61-90 DAYS 91+ DAYS PAYABLE
----------- ------------ ------------ ---------- --------
<S> <C> <C> <C> <C>
$ (24) $ 277 $ 262 $ 8 $ 523 (a)
Outstanding Checks, Chase Account No. 312-7934031-66 477
Outstanding Checks, FUNB Account No. 2079900003505 42
---------
Total Accounts Payable $ 1,042
---------
---------
</TABLE>
NOTES:
(a) Post-petition accounts payable debit balance results from prepayments for
inventory/materials not yet received.
Page 1 of 1
Exhibit 5
<PAGE>
BROTHERS GOURMET COFFEES, INC. AND AFFILIATED DEBTORS
STATUS OF POST-PETITION TAXES
AS OF DECEMBER 25, 1998
($000'S)
<TABLE>
<CAPTION>
AMOUNT RECLASS TO
BEGINNING WITHHELD OR ACCOUNTS AMOUNT ENDING TAX DELINQUENT
TAX LIABILITY ACCRUED PAYABLE (A) PAID LIABILITY TAXES
------------- ----------- ------------ ------ ---------- ----------
<S> <C> <C> <C> <C> <C> <C>
FEDERAL
Withholding (b) $ 74.1 $ 36.1 $ -- $ 74.2 $ 36.0 $ --
Unemployment (b) 0.1 1.0 -- -- 1.1 --
--------------------------------------------------------------------------------------------------
TOTAL FEDERAL 74.2 37.1 -- 74.2 37.1 --
STATE
Withholding (b) 3.0 0.8 -- 1.9 1.9 --
Unemployment (b) (0.4) 3.4 -- 0.5 2.5 --
Income 3.1 -- -- -- 3.1 --
Property 280.2 29.7 114.0 81.2 114.7 --
Sales 66.5 11.1 -- 6.8 70.8 --
Franchise (c) 69.3 11.4 -- -- 80.7 --
--------------------------------------------------------------------------------------------------
TOTAL STATE AND LOCAL 421.7 56.4 114.0 90.4 273.7 --
--------------------------------------------------------------------------------------------------
TOTAL TAXES $ 495.9 $ 93.5 $ 114.0 $ 164.6 $ 310.8 $ --
--------------------------------------------------------------------------------------------------
--------------------------------------------------------------------------------------------------
</TABLE>
NOTES:
(a) Amount vouchered to accounts payable.
(b) The Debtors are authorized to pay certain pre-petition employee related
taxes under "First Day" orders.
(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.
Page 1 of 1
Exhibit 6
<PAGE>
BROTHERS GOURMET COFFEES, INC. AND AFFILIATED DEBTORS
BANK RECONCILIATION
AS OF DECEMBER 25, 1998
($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 $ 31.5 $ 398.0 $ 436.6 $ 83.8 $ 75.8
2. ADD: TOTAL DEPOSITS NOT CREDITED 0.0 0.0 0.0 0.0 0.0
3. SUBTRACT: OUTSTANDING CHECKS 0.0 0.0 (476.7) (41.9) (72.4)
4. OTHER RECONCILING ITEMS (ATTACH LIST) (9.5) 2.1 (5.1) 0.0 0.2
5. MONTH END BALANCE PER BOOKS $ 22.0 $ 400.1 $ (45.2) $ 41.9 $ 3.6
6. NUMBER OF LAST CHECK WRITTEN 94608 88744 9181
<CAPTION>
ACCOUNT #6 ACCOUNT #7 ACCOUNT #8
A. BANK: FUNB FUNB FUNB
B. ACCOUNT NUMBER: 2090000011463 2090000011450 2090000802410 TOTAL
C. PURPOSE (TYPE): DEPOSITORY DEPOSITORY CHECKING
- ------------------- ------------- ------------- ------------- -----------
<S> <C> <C> <C> <C>
1. BALANCE PER BANK STATEMENT $ 1.8 $ 1.2 $ 1.4 $ 1,030.1
2. ADD: TOTAL DEPOSITS NOT CREDITED 0.0 0.0 4.0 4.0
3. SUBTRACT: OUTSTANDING CHECKS 0.0 0.0 (0.4) (591.4)
4. OTHER RECONCILING ITEMS (ATTACH LIST) 0.0 0.0 1.4 (10.9)
5. MONTH END BALANCE PER BOOKS $ 1.8 $ 1.2 $ 6.4 $ 431.8
6. NUMBER OF LAST CHECK WRITTEN 1432
Outstanding Checks, Chase 312-7934031-66 476.7
Outstanding Checks, FUNB 2079900003505 41.9
Month End Balance Per Books $ 950.4
</TABLE>
NOTES:
FUNB - First Union National Bank
Page 1 of 1
Exhibit 7
<PAGE>
BROTHERS GOURMET COFFEES, INC. AND AFFILIATED DEBTORS
DISTRIBUTIONS TO INSIDERS
DECEMBER 1998
<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 -- -- -- -- -- -- -- --
Rudy, Ray -- 500 -- -- -- -- -- 500
OFFICERS:
Breen, Donald 19,403 -- -- -- 2,586 -- 192 22,181
Bilmes, Barry 9,755 -- -- -- -- -- 144 9,899
Pennington, Linda 8,151 -- -- -- -- -- -- 8,151
Davis, Eric 7,055 -- -- -- -- -- 87 7,142
Brownstein, Hyatt, Farber
& Strickland P.C -- -- -- -- -- -- -- --
Schoonover, Randy 54 -- -- -- -- -- -- 54
------- ------- ----- ----- --------- ----- ------- -------
$44,418 $ 1,500 $ -- $ -- $ 2,586 $ -- $ 423 $48,927
======= ======= ===== ===== ========= ===== ======= =======
</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.
Page 1 of 1
Exhibit 8
<PAGE>
BROTHERS GOURMET COFFEES, INC. AND AFFILIATED DEBTORS
PAYMENTS TO PROFESSIONALS (a)
DECEMBER 1998
<TABLE>
<CAPTION>
NAME TOTAL
---- -----
<S> <C>
Brownstein, Hyatt, Farber & Strickland, P.C $ 35,232
PricewaterhouseCoopers, LLP 115,517
Weil, Gotshal & Manges, LLP 84,832
Richards, Layton & Finger, P.A 40,492
The Bayard Firm 17,732
White & Case, LLP 56,996
Logan and Company 26,740
--------
$377,541
========
</TABLE>
NOTES:
(a) Payments for post-petition fees and expenses in accordance with the Interim
Compensation Order.
Page 1 of 1
Exhibit 9
<PAGE>
BROTHERS GOURMET COFFEES, INC. AND AFFILIATED DEBTORS
INSURANCE POLICIES
AS OF DECEMBER 25, 1998
<TABLE>
<CAPTION>
TYPE OF POLICY TERM CARRIER PAYMENTS 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>
Page 1 of 1
Exhibit 10
