<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): July 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.)
7105 Katy Road
Houston, Texas 77024
- -------------------------------------------------------------------------
(Address of Principal (Zip Code)
Executive Offices)
(713) 868-8294
- -------------------------------------------------------------------------
(Registrant's Telephone Number, Including Area Code)
2255 Glades Road
Suite 100E
Boca Raton, Florida 33431
- -------------------------------------------------------------------------
(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 June 30, 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 July 19, 1999.
ITEM 7. FINANCIAL STATEMENTS AND EXHIBITS
(c) Exhibits
99.1 Copy of the Registrant's Monthly Operating Report, for the period
ended June 30, 1999, filed with the Bankruptcy Court and U.S.
Trustee's Office on July 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: August 3, 1999 By: Barry Bilmes
Title: President
<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 JUNE 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:
- ---------------------------------------- ----------------------------
ORIGINAL SIGNATURE OF RESPONSIBLE PARTY TITLE
- ---------------------------------------- ----------------------------
PRINTED NAME OF RESPONSIBLE PARTY DATE
PREPARER:
/s/ Larry Smith Controller
- ---------------------------------------- ----------------------------
ORIGINAL SIGNATURE OF PREPARER TITLE
Larry Smith July 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. 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 (DEFICIT)
- -----------------------------------------------------------------------------------------------------------------
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>
DEBTOR: BROTHERS GOURMET COFFEES, INC. AND AFFILIATED DEBTORS ACCRUAL BASIS-4
<TABLE>
<CAPTION>
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)
- ----------------------------------------------------------------------------------------------------------------------------
4. 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)
- -----------------------------------------------------------------------------------------------------------------------------
AGING OF POST PETITION TAXES AND PAYABLES - SEE EXHIBIT 5
- -----------------------------------------------------------------------------------------------------------------------------
0-30 31-60 61-90 91+
DAYS DAYS DAYS DAYS TOTAL
- -----------------------------------------------------------------------------------------------------------------------------
ACCOUNTS PAYABLE
- -----------------------------------------------------------------------------------------------------------------------------
- -----------------------------------------------------------------------------------------------------------------------------
STATUS OF POST PETITION TAXES - SEE EXHIBIT 6
- -----------------------------------------------------------------------------------------------------------------------------
BEGINNING WITHHELD ENDING
TAX AND/OR AMOUNT TAX DELINQUENT
LIABILITY* ACCRUED PAID LIABILITY TAXES
- -----------------------------------------------------------------------------------------------------------------------------
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
- -----------------------------------------------------------------------------------------------------------------------------------
- ------------------------------------------------------------
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
- -----------------------------------------------------------------------------------------------------------------------------------
- -----------------------------------------------------------------------------------------------------------------------------------
PROFESSIONALS - SEE EXHIBIT 9
- -----------------------------------------------------------------------------------------------------------------------------------
TYPE DATE OF COURT
OF ORDER AUTHORIZING AMOUNT AMOUNT TOTAL PAID
NAME PROFESSIONAL PAYMENT APPROVED PAID TO DATE
- -----------------------------------------------------------------------------------------------------------------------------------
1.
- -----------------------------------------------------------------------------------------------------------------------------------
2.
- -----------------------------------------------------------------------------------------------------------------------------------
3.
- -----------------------------------------------------------------------------------------------------------------------------------
4.
- -----------------------------------------------------------------------------------------------------------------------------------
5.
- -----------------------------------------------------------------------------------------------------------------------------------
6. TOTAL PAYMENTS TO PROFESSIONALS
- -----------------------------------------------------------------------------------------------------------------------------------
- -----------------------------------------------------------------------------------------------------------------------------------
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 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
- -----------------------------------------------------------------------------------------------------------------------------------
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 Debtor sold certain assets, consisting principally of inventory,
accounts receivable and certain fixed assets to The Procter 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
- -----------------------------------------------------------------------------------------------------------------------------------
INSURANCE 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.
- -----------------------------------------------------------------------------------------------------------------------------------
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.
- -----------------------------------------------------------------------------------------------------------------------------------
INSURANCE POLICIES - SEE EXHIBIT 10
- -----------------------------------------------------------------------------------------------------------------------------------
TYPE OF PAYMENT AMOUNT
POLICY CARRIER PERIOD COVERED & FREQUENCY
- -----------------------------------------------------------------------------------------------------------------------------------
- -----------------------------------------------------------------------------------------------------------------------------------
- -----------------------------------------------------------------------------------------------------------------------------------
- -----------------------------------------------------------------------------------------------------------------------------------
- -----------------------------------------------------------------------------------------------------------------------------------
- -----------------------------------------------------------------------------------------------------------------------------------
- -----------------------------------------------------------------------------------------------------------------------------------
- -----------------------------------------------------------------------------------------------------------------------------------
- -----------------------------------------------------------------------------------------------------------------------------------
</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> <C>
1. Total number of employees at beginning of period 70
- -------------------------------------------------------------------------------------------------------------------------------
2. Number of employees hired during the period 1
- -------------------------------------------------------------------------------------------------------------------------------
3. Number of employees terminated or resigned during the period 2
- -------------------------------------------------------------------------------------------------------------------------------
4. Total number of employees on payroll at end of period 69
- -------------------------------------------------------------------------------------------------------------------------------
- -------------------------------------------------------------------------------------------------------------------------------
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:
</TABLE>
<PAGE>
BROTHERS GOURMET COFFEES, INC. AND AFFILIATED DEBTORS
CONSOLIDATED BALANCE SHEET - UNAUDITED
AS OF JUNE 30, 1999
($000'S)
<TABLE>
<S> <C>
Current Assets:
Petty cash $ 1
Cash in bank 2,350
Accounts receivable 1,811
Inventories 1,236
Prepaid expenses and other assets 87
----------
Current assets 5,485
Plant and Equipment, net 3,507
Other Assets:
Debt acquisition costs 1,096
Prepaid promotional expenses -
Other assets 287
----------
Total assets $ 10,375
==========
Current Liabilities:
Accounts payable (post-petition) $ 462
Accrued expenses (post-petition) 1,456
Term loan note -
Revolving loan -
----------
Current liabilities 1,918
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 (164,432)
Treasury stock (450)
----------
Total Shareholders' Equity (13,188)
----------
Total Liabilities and Shareholders' Equity $ 10,375
==========
</TABLE>
Exhibit 1
<PAGE>
BROTHERS GOURMET COFFEES, INC. AND AFFILIATED DEBTORS
CONSOLIDATED INCOME STATEMENT - UNAUDITED
AS OF JUNE 30, 1999
($000'S)
<TABLE>
<S> <C>
Sales $ 817
Cost of goods sold 593
-----
Gross profit 224
Operating expenses
Customer 1
Sales 27
Distribution 215
Marketing 1
General administrative 470
MIS administrative 56
-----
Total operating expenses 770
Operating income (loss) (546)
(Gain) loss on sale of assets 40
Interest expense 38
(Gain) loss on purchase commitments -
Other (income) expense -
-----
Net income (loss) $(624)
=====
</TABLE>
Exhibit 2
<PAGE>
BROTHERS GOURMET COFFEES, INC. AND AFFILIATED DEBTORS
POST-PETITION CASH RECEIPTS AND DISBURSEMENTS
FOR THE MONTH ENDED JUNE 30, 1999
($000'S)
<TABLE>
<CAPTION>
-------
5/31/99
6/60/99
-------
<S> <C>
RECEIPTS:
Lockbox $ -
Credit Card -
Other(a) 854
-------
854
DISBURSEMENTS:
Green Coffee 189
Packaging & Flavoring 313
Payroll & Benefits 580
Plant Overhead 182
Customer Expenses -
Distribution Costs 62
Sales Costs -
Marketing -
Management Info. Systems 11
Administrative 54
Professional Fees 286
Interest Expense & Bank Fees -
Slotting Fees -
Capital Expenditures
-------
Other 246
-------
Total Disbursements 1,923
Net Cash Flow Prior to Goldman Activity (1,069)
Cash to Goldman -
Cash from Goldman -
-------
Net Cash Flow (1,069)
Beginning Cash 2,981
-------
Ending Cash Before Float 1,912
Outstanding Check Float 438
-------
Cash Ledger Balance per Bank $ 2,350
=======
GOLDMAN DIP:
Beginning Balance $ -
Drawdowns -
Paybacks -
-------
Ending Balance $ -
=======
</TABLE>
NOTES:
(a) Includes proceeds from the sale of certain assets to the Procter &
Gamble Company of $1,543K.
Exhibit 3
<PAGE>
BROTHERS GOURMET COFFEES, INC. AND AFFILIATED DEBTORS
AGING OF ACCOUNTS RECEIVABLE
AS OF JUNE 30, 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>
$ 629 $195 $ 6 $ - $ 830 $ - $ 830
Cash sales 6K billed in April $ 11
To be offset with Accrue Rebates $ 473
Employee Advances - Current $ 26
Accrued P&G Sales - Current $ 300
A/R Coffee Broker Over 180 Past due $ 171
------
Total A/R $1,811
======
</TABLE>
Exhibit 4
<PAGE>
BROTHERS GOURMET COFFEES, INC AND AFFILIATED DEBTORS
AGING OF ACCOUNTS PAYABLE
AS OF JUNE 30, 1999
($ 000'S)
<TABLE>
<CAPTION>
Total
Accounts
0-30 Days 31-60 Days 61-90 Days 91+ Days(b) Payable
--------- ---------- ---------- ----------- -------
<S> <C> <C> <C> <C>
$ 288 $ 15 $ 23 $ 199 $525 (a)
Outstanding Checks, Chase Account No. 312-7934031-66 25
Outstanding Checks, Wells Fargo Account No. 337788970 403
Outstanding Checks, Wells Fargo Account No. 4595852287 10
----
Total Accounts Payable $963
====
</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 JUNE 30, 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) $ 3.3 $ 198.1 $ 201.4 $ - $ -
Unemployment (a) - - -
---------------------------------------------------------------------
TOTAL FEDERAL 3.3 198.1 201.4 - -
STATE
Withholding (a) 1.0 - - 1.0 -
Unemployment (a) 0.1 - - 0.1 -
Income 2.8 - - 2.8 -
Property 125.0 17.0 103.9 38.1 -
Sales 77.0 - - 77.0 -
Franchise (b) 128.2 - - 128.2 -
---------------------------------------------------------------------
TOTAL STATE AND LOCAL 334.1 17.0 103.9 247.2 -
---------------------------------------------------------------------
TOTAL TAXES $ 337.4 $ 215.1 $ 305.3 $ 247.2 $ -
=====================================================================
</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 JUNE 30, 1999
($000'S)
<TABLE>
<CAPTION>
---------------------------------------------------------------------------
ACCOUNT #1 ACCOUNT #2 ACCOUNT # 3 ACCOUNT #4
- -----------------------------------------------------------------------------------------------------------------------------------
A. BANK: FUNB CHASE CHASE FUNB
---------------------------------------------------------------------------
B. ACCOUNT NUMBER: 2000000482626 066-611121 312-7934031-66 2079900003505
---------------------------------------------------------------------------
C. PURPOSE (TYPE): DEPOSITORY DEPOSITORY CHECKING CHECKING
- -----------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
1. BALANCE PER BANK STATEMENT $ - $(15.6) $435.2 $ -
- -----------------------------------------------------------------------------------------------------------------------------------
2. ADD: TOTAL DEPOSITS NOT CREDITED 0.0 0.0 0.0 0.0
- -----------------------------------------------------------------------------------------------------------------------------------
3. SUBTRACT: OUTSTANDING CHECKS 0.0 0.0 (25.4) 0.0
- -----------------------------------------------------------------------------------------------------------------------------------
4. OTHER RECONCILING ITEMS 0.0 0.0 0.0 0.0
- -----------------------------------------------------------------------------------------------------------------------------------
5. MONTH END BALANCE PER BOOKS $ - $(15.6) $409.8 $ -
- -----------------------------------------------------------------------------------------------------------------------------------
6. NUMBER OF LAST CHECK WRITTEN 96152 88744
- -----------------------------------------------------------------------------------------------------------------------------------
--------------------------------------------------------------------------------------
ACCOUNT #5 ACCOUNT #6 ACCOUNT #7 ACCOUNT #8 ACCOUNT #9 ACCOUNT #10
- ---------------------------------------------------------------------------------------------------------------------------
A. BANK: FUNB FUNB FUNB FUNB Wells Fargo Wells Fargo
--------------------------------------------------------------------------------------
B. ACCOUNT NUMBER: 2155300194336 2090000011463 2090000011450 2090000802410 337788970 4595852287 TOTAL
--------------------------------------------------------------------------------------
C. PURPOSE (TYPE): PAYROLL DEPOSITORY DEPOSITORY CHECKING CHECKING PAYROLL
- -----------------------------------------------------------------------------------------------------------------------------------
1. BALANCE PER BANK STATEMENT $ 140.7 $ - $ 0.1 $ 3.6 $ 1,673.6 $ 112.4 $2,350.0
- -----------------------------------------------------------------------------------------------------------------------------------
2. ADD: TOTAL DEPOSITS NOT CREDITED 0.0 0.0 0.0 0.0 0.0 0.0 $ -
- -----------------------------------------------------------------------------------------------------------------------------------
3. SUBTRACT: OUTSTANDING CHECKS 0.0 0.0 0.0 0.0 (402.3) (9.8) $(437.5)
- -----------------------------------------------------------------------------------------------------------------------------------
4. OTHER RECONCILING ITEMS 0.0 0.0 0.0 0.0 0.0 $ -
- -----------------------------------------------------------------------------------------------------------------------------------
5. MONTH END BALANCE PER BOOKS $ 140.7 $ - $ 0.1 $ 3.6 $ 1,271.3 $ 102.6 $1,912.5
- -----------------------------------------------------------------------------------------------------------------------------------
6. NUMBER OF LAST CHECK WRITTEN 9674
- -----------------------------------------------------------------------------------------------------------------------------------
- --------------------------------------------------------------------------
Outstanding Checks, Chase 312-7934031-66 25.4
--------------------------------------------------------------------------
Outstanding Checks, FUNB 2155300194336 -
--------------------------------------------------------------------------
Outstanding Checks, WF 4595852287 9.8
--------------------------------------------------------------------------
Outstanding Checks, WF 337788970 402.3
--------------------------------------------------------------------------
Month End Balance Per Books $2,350.0
--------------------------------------------------------------------------
</TABLE>
NOTES:
FUNB-First Union National Bank
Exhibit 7
<PAGE>
BROTHERS GOURMET COFFEES, INC. AND AFFILIATED DEBTORS
DISTRIBUTIONS TO INSIDERS
JUNE 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>
DIRECTORS:
Aburdene, Elias $ - $ - $ - $ - $ - $ - $ - $ -
Bolduc, J.P. - - - - - - - -
Moore, James - - - - - - - -
Rudy, Ray - - - - - - - -
OFFICERS:
Breen, Donald - - - - - - - -
Bilmes, Barry 48,678 - - - 1,013 - 144 49,835
Pennington, Linda 111,832 - - - - - - 111,832
Davis, Eric - - - - - - - -
- - - - - - - -
---------------------------------------------------------------------------------------------------------
$ 160,510 $ - $ - $ - $ 1,013 $ - $ 144 $161,667
=========================================================================================================
</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)
JUNE, 1999
<TABLE>
<CAPTION>
Name Total
---- -----
<S> <C>
Weil, Gotshal & Manges, LLP $ 53,199
Bernard A. Katz 26,500
Logan -
White & Case, LLP 10,603
PricewaterhouseCoopers, LLP 142,516
Brownstein, Hyatt, Farber & Strickland, P.C. 45,806
Richard, Layton & Finger, P.A. 3,681
The Bayard Firm 3,586
Edwards, Ballard, Sturm, Clark & Keim, P.A. -
---------
$ 285,891
=========
</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>
<PAGE>
OFFICE OF THE U.S. TRUSTEE-REGION B
During the ordinary course of business each year, the company files in excess
of forty income tax 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.
Larry Smith
Controller
