<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): December 16, 1999
-------------------------
BROTHERS GOURMET COFFEES, INC.
- -------------------------------------------------------------------------------
(Exact Name of Registrant as Specified in Charter)
Delaware 0-23024 52-1681708
- -------------------------------------------------------------------------------
(State or Other Juris- (Commission File (IRS Employer
diction of Incorporation) Number) Identification No.)
7105 Katy Road
Houston, Texas 77024
- ---------------------------------------------------------------------------
(Address of Principal (Zip Code)
Executive Offices)
(713) 868-8294
- -----------------------------------------------------------------------
(Registrant's Telephone Number, Including Area Code)
- ------------------------------------------------------------------------
(Former Name or Former Address, if Changed Since Last Report)
<PAGE>
ITEM 5. OTHER EVENTS
On October 15, 1998, the Registrant filed a request with the Securities and
Exchange Commission (the "Commission") seeking confirmation from the Staff
that it would not recommend any enforcement action to the Commission if, in
lieu of filing the quarterly and annual reports on Forms 10-Q and 10-K,
respectively, that the Registrant would otherwise be required to file while
it is in reorganization proceedings pursuant to Chapter 11 of the Bankruptcy
Code, the Registrant implements modified reporting procedures. Such modified
reporting procedures consist of filing each of the Registrant's Monthly
Operating Reports under cover of Form 8-K within 15 days after such Monthly
Operating Report is due to be filed with the Bankruptcy Court and U.S.
Trustee's Office. The Commission has not yet issued its decision on the
Registrant's request; however, pending such decision, the Registrant is
implementing the proposed modified reporting procedures. Accordingly, the
Registrant's Monthly Operating Report, presenting certain financial
information of the Registrant and its subsidiaries for the period ended
November 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 December 16, 1999.
ITEM 7. FINANCIAL STATEMENTS AND EXHIBITS
(c) Exhibits
99.1 Copy of the Registrant's Monthly Operating Report, for the
period ended November 30, 1999, filed with the Bankruptcy
Court and U.S. Trustee's Office on December 16, 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: January 11, 2000 By: Barry Bilmes
Title: President
<PAGE>
DEBTOR: BROTHERS GOURMET COFFEES, INC. AND AFFILIATED DEBTORS
CASE NO.: 98-1970, 98-1971, 98-1973, 98-1974
OFFICE OF THE UNITED STATES TRUSTEE - REGION 3
MONTHLY OPERATING REPORT
FOR THE MONTH ENDING NOVEMBER 30, 1999
===============================================================================
<TABLE>
<CAPTION>
Document Previously Explanation
Required attachments Attached Submitted Attached
<S> <C> <C> <C>
1. Tax Receipts ( ) ( ) ( X )
2. Bank Statements ( X ) ( ) ( )
3. Most recently filed ( ) ( X ) ( )
Income Tax Return
4. Most recent Annual Financial ( ) ( X ) ( )
Statements prepared by accountant
</TABLE>
IN ACCORDANCE WITH TITLE 28, SECTION 1746, OF THE UNITED STATES CODE, I DECLARE
UNDER PENALTY OF PERJURY THAT I HAVE EXAMINED THE FOLLOWING MONTHLY OPERATING
REPORT (ACCRUAL BASIS-1 THROUGH ACCRUAL BASIS-9) AND THE ACCOMPANYING
ATTACHMENTS AND, TO THE BEST OF MY KNOWLEDGE, THESE DOCUMENTS ARE TRUE, CORRECT
AND COMPLETE. DECLARATION OF THE PREPARER (OTHER THAN RESPONSIBLE PARTY) IS
BASED ON ALL INFORMATION OF WHICH PREPARER HAS ANY KNOWLEDGE.
RESPONSIBLE PARTY:
/s/ Larry Smith Controller
- -------------------------------------------- -----------------------
ORIGINAL SIGNATURE OF RESPONSIBLE PARTY TITLE
Larry Smith 12-16-99
- -------------------------------------------- -----------------------
PRINTED NAME OF RESPONSIBLE PARTY DATE
PREPARER:
/s/ Clifton Franklin Accounting Manager
- -------------------------------------------- -----------------------
ORIGINAL SIGNATURE OF PREPARER TITLE
Clifton Franklin 12-16-99
- -------------------------------------------- -----------------------
PRINTED NAME OF PREPARER DATE
All Chapter 11 debtors must file this report with the Court and serve a copy on
the United States Trustee.
<PAGE>
DEBTOR: BROTHERS GOURMET COFFEES, INC. AND AFFILIATED DEBTORS ACCRUAL BASIS-2
COMPARATIVE BALANCE SHEET
CASE NO.: 98-1970, 98-1971, 98-1973, 98-1974 THIRD QUARTER
<TABLE>
<CAPTION>
- ----------------------------------------------------------------------------------------------------------------
ASSETS - SEE EXHIBIT 1 MONTH MONTH MONTH
-----------------------------------------------------------------
<S> <C> <C> <C>
- ----------------------------------------------------------------------------------------------------------------
1. CASH
- ----------------------------------------------------------------------------------------------------------------
2. ACCOUNTS RECEIVABLE
- ----------------------------------------------------------------------------------------------------------------
3. INVENTORY
- ----------------------------------------------------------------------------------------------------------------
4. NOTES RECEIVABLE
- ----------------------------------------------------------------------------------------------------------------
5. PREPAID EXPENSES
- ----------------------------------------------------------------------------------------------------------------
6. OTHER (ATTACH LIST)
- ----------------------------------------------------------------------------------------------------------------
7. TOTAL CURRENT ASSETS
- ----------------------------------------------------------------------------------------------------------------
8. PROPERTY, PLANT & EQUIPMENT
- ----------------------------------------------------------------------------------------------------------------
9. LESS ACCUMULATED
DEPRECIATION/DEPLETION
- ----------------------------------------------------------------------------------------------------------------
10. NET PROPERTY, PLANT &
EQUIPMENT
- ----------------------------------------------------------------------------------------------------------------
11. DUE FROM AFFILIATES & INSIDERS
- ----------------------------------------------------------------------------------------------------------------
12. INTANGIBLES (ATTACH LIST)
- ----------------------------------------------------------------------------------------------------------------
13. OTHER (ATTACH LIST)
- ----------------------------------------------------------------------------------------------------------------
14. TOTAL ASSETS
- ----------------------------------------------------------------------------------------------------------------
POSTPETITION LIABILITIES
- ----------------------------------------------------------------------------------------------------------------
15. ACCOUNTS PAYABLE
- ----------------------------------------------------------------------------------------------------------------
16. TAXES PAYABLE
- ----------------------------------------------------------------------------------------------------------------
17. NOTES PAYABLE
- ----------------------------------------------------------------------------------------------------------------
18. PROFESSIONAL FEES
- ----------------------------------------------------------------------------------------------------------------
19. SECURED DEBT
- ----------------------------------------------------------------------------------------------------------------
20. DUE TO AFFILIATES & INSIDERS
- ----------------------------------------------------------------------------------------------------------------
21. OTHER (ATTACH LIST)
- ----------------------------------------------------------------------------------------------------------------
22. TOTAL POSTPETITION
LIABILITIES
- ----------------------------------------------------------------------------------------------------------------
PREPETITION LIABILITIES
- ----------------------------------------------------------------------------------------------------------------
23. SECURED DEBT
- ----------------------------------------------------------------------------------------------------------------
24. PRIORITY DEBT
- ----------------------------------------------------------------------------------------------------------------
25. UNSECURED DEBT
- ----------------------------------------------------------------------------------------------------------------
26. OTHER (ATTACH LIST)
- ----------------------------------------------------------------------------------------------------------------
27. TOTAL PREPETITION LIABILITIES
- ----------------------------------------------------------------------------------------------------------------
28. TOTAL LIABILITIES
- ----------------------------------------------------------------------------------------------------------------
EQUITY
- ----------------------------------------------------------------------------------------------------------------
29. PREPETITION OWNERS' EQUITY
- ----------------------------------------------------------------------------------------------------------------
30. POSTPETITION CUMULATIVE
PROFIT OR (LOSS)
- ----------------------------------------------------------------------------------------------------------------
31. TOTAL EQUITY (DEFECIT)
- ----------------------------------------------------------------------------------------------------------------
32. TOTAL LIABILITIES &
OWNERS' EQUITY
- ----------------------------------------------------------------------------------------------------------------
</TABLE>
<PAGE>
DEBTOR: BROTHERS GOURMET COFFEES, INC. AND AFFILIATED DEBTORS ACCRUAL BASIS-3
INCOME STATEMENT
CASE NO.: 98-1970, 98-1971, 98-1973, 98-1974 THIRD QUARTER
<TABLE>
<CAPTION>
- --------------------------------------------------------------------------------------------------------------------
REVENUES - SEE EXHIBIT 2 MONTH MONTH MONTH
<S> <C> <C> <C>
- --------------------------------------------------------------------------------------------------------------------
1. GROSS REVENUES
- --------------------------------------------------------------------------------------------------------------------
2. LESS: RETURNS & DISCOUNTS
- --------------------------------------------------------------------------------------------------------------------
3. NET REVENUE
- --------------------------------------------------------------------------------------------------------------------
COST OF GOODS SOLD
- --------------------------------------------------------------------------------------------------------------------
4. BEGINNING INVENTORY
- --------------------------------------------------------------------------------------------------------------------
5. ADD: PURCHASES
- --------------------------------------------------------------------------------------------------------------------
6. LESS: ENDING INVENTORY
- --------------------------------------------------------------------------------------------------------------------
7. TOTAL COST OF GOODS SOLD
- --------------------------------------------------------------------------------------------------------------------
8. GROSS PROFIT
- --------------------------------------------------------------------------------------------------------------------
OPERATING EXPENSES
- --------------------------------------------------------------------------------------------------------------------
9. OFFICER/INSIDER COMPENSATION
- --------------------------------------------------------------------------------------------------------------------
10. DIRECT LABOR/SALARIES
- --------------------------------------------------------------------------------------------------------------------
11. PAYROLL TAXES
- --------------------------------------------------------------------------------------------------------------------
12. RENT & LEASE EXPENSE
- --------------------------------------------------------------------------------------------------------------------
13. INSURANCE
- --------------------------------------------------------------------------------------------------------------------
14. DEPRECIATION/DEPLETION/AMORTIZATION
- --------------------------------------------------------------------------------------------------------------------
15. GENERAL & ADMINISTRATIVE
- --------------------------------------------------------------------------------------------------------------------
16. OTHER (ATTACH LIST)
- --------------------------------------------------------------------------------------------------------------------
17. TOTAL OPERATING EXPENSE
- --------------------------------------------------------------------------------------------------------------------
18. OPERATING INCOME
- --------------------------------------------------------------------------------------------------------------------
OTHER INCOME & EXPENSES
- --------------------------------------------------------------------------------------------------------------------
19. OTHER INCOME (ATTACH LIST)
- --------------------------------------------------------------------------------------------------------------------
20. OTHER EXPENSES (ATTACH LIST)
- --------------------------------------------------------------------------------------------------------------------
21. INTEREST EXPENSE
- --------------------------------------------------------------------------------------------------------------------
22. OTHER (ATTACH LIST)
- --------------------------------------------------------------------------------------------------------------------
23. NET OTHER INCOME & EXPENSES
--------------------------------------------------------------------------------------------------------------------
REORGANIZATION EXPENSES
- --------------------------------------------------------------------------------------------------------------------
24. PROFESSIONAL FEES
- --------------------------------------------------------------------------------------------------------------------
25. U.S. TRUSTEE FEES
- --------------------------------------------------------------------------------------------------------------------
26. OTHER (ATTACH LIST)
- --------------------------------------------------------------------------------------------------------------------
27. TOTAL REORGANIZATION EXPENSES
- --------------------------------------------------------------------------------------------------------------------
28. INCOME TAX
- --------------------------------------------------------------------------------------------------------------------
29. NET PROFIT (LOSS)
- --------------------------------------------------------------------------------------------------------------------
</TABLE>
<PAGE>
DEBTOR: BROTHERS GOURMET COFFEES, INC. 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
<S> <C> <C> <C>
-----------------------------------------------------------------
DISBURSEMENTS - SEE EXHIBIT 3
- ----------------------------------------------------------------------------------------------------------------------------
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
<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 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> <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
- -----------------------------------------------------------------------------------------------------------------------------------
<CAPTION>
0-30 31-60 61-90 91+
DAYS DAYS DAYS DAYS TOTAL
<S> <C> <C> <C> <C> <C>
- -----------------------------------------------------------------------------------------------------------------------------------
ACCOUNTS PAYABLE
- -----------------------------------------------------------------------------------------------------------------------------------
- -----------------------------------------------------------------------------------------------------------------------------------
STATUS OF POST PETITION TAXES - SEE EXHIBIT 6
- -----------------------------------------------------------------------------------------------------------------------------------
<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
- --------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
A. BANK:
----------------------------------------------------------------
B. ACCOUNT NUMBER: TOTAL
----------------------------------------------------------------
C. PURPOSE (TYPE):
- --------------------------------------------------------------------------------------------------------------------------------
1. BALANCE PER BANK STATEMENT
- --------------------------------------------------------------------------------------------------------------------------------
2. ADD: TOTAL DEPOSITS NOT CREDITED
- --------------------------------------------------------------------------------------------------------------------------------
3. SUBTRACT: OUTSTANDING CHECKS
- --------------------------------------------------------------------------------------------------------------------------------
4. OTHER RECONCILING ITEMS (ATTACH LIST)
- --------------------------------------------------------------------------------------------------------------------------------
5. MONTH END BALANCE PER BOOKS
- --------------------------------------------------------------------------------------------------------------------------------
6. NUMBER OF LAST CHECK WRITTEN
- --------------------------------------------------------------------------------------------------------------------------------
<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 August, 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
- ----------------------------------------------------------------------------------------------------------------------------------
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
- ----------------------------------------------------------------------------------------------------------------------------------
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
<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 72
- -------------------------------------------------------------------------------
2. Number of employees hired during the period 8
- -------------------------------------------------------------------------------
3. Number of employees terminated or resigned during the period 4
- -------------------------------------------------------------------------------
4. Total number of employees on payroll at end of period 76
- -------------------------------------------------------------------------------
</TABLE>
- -------------------------------------------------------------------------------
CHANGE OF ADDRESS
1705 KATY ROAD
HOUSTON, TEXAS 77024
713-868-8100
- -------------------------------------------------------------------------------
If your mailing address has changed and you have not previously notified
the United States Trustee of the change, list your new address below:
DATE OF CHANGE:__September 30, 1999________________________
NEW ADDRESS:
<PAGE>
BROTHERS GOURMET COFFEES, INC. AND AFFILIATED DEBTORS
CONSOLIDATED INCOME STATEMENT - UNAUDITED
AS OF NOVEMBER 30, 1999
($000'S)
<TABLE>
<S> <C>
Current Assets:
Petty cash $ 1
Cash in bank 1,201
Accounts receivable 2,015
Receivable from sale of
discontinued operations -
Inventories 1,031
Prepaid expenses and other assets 4
---------
Current assets 4,252
Plant and Equipment, net 3,132
Other Assets:
Goodwill -
Design costs -
Retail assets held for sale -
Debt acquisition costs 1,096
Debt restructuring costs
Prepaid promotional expenses -
Other assets 102
---------
Total assets $ 8,582
=========
Current Liabilities:
Accounts payable (post-petition) $ 689
Accrued expenses (post-petition) 396
Term loan note -
Revolving loan -
---------
Current liabilities 1,085
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) 1,858
---------
Liabilities subject to compromise 9,306
Minority interests 50
Shareholders' Equity:
Common stock 1
Additional paid-in capital 151,693
Accumulated deficit in earnings (165,422)
Treasury stock (450)
---------
Total Shareholders' Equity (14,178)
---------
Total Liabilities and Shareholders' Equity $ 8,582
=========
</TABLE>
Exhibit 1
<PAGE>
BROTHERS GOURMET COFFEES, INC. AND AFFILIATED DEBTORS
Consolidated Income Statement - Unaudited
As of November 30, 1999
($000's)
<TABLE>
<S> <C>
Sales $ 1,111
Cost of goods sold 921 (1)
-------
Gross profit 190
Operating expenses
Customer -
Sales 35
Distribution 6
Marketing 1
General administrative 190 (2)
MIS administrative 43 (3)
-------
Total operating expenses 275
Operating income (loss) (85)
(Gain) loss on sale of assets (63)
Interest expense -
(Gain) loss on purchase commitments -
Other (income) expense
-------
Net income (loss) $ (22)
=======
</TABLE>
NOTES:
(1) Includes Depreciation of $93K
(2) Includes Legal Expenses of $115K
(3) Includes Depreciation of IS Computer System of $21K
Exhibit 2
<PAGE>
BROTHERS GOURMET COFFEES, INC. AND AFFILIATED DEBTORS
Post-Petition Cash Receipts and Disbursements
For the Month Ended November 30, 1999
($000's)
<TABLE>
<CAPTION>
--------
10/31/99
11/30/99
--------
<S> <C>
RECEIPTS:
Lockbox $ -
Other 1,164
-------
1,164
DISBURSEMENTS:
Green Coffee -
Packaging & Flavoring 242
Payroll & Benefits 374
Plant Overhead 160
Customer Expenses
Distribution Costs 2
Sales Costs -
Marketing -
Management Info. Systems 3
Administrative 81 (1)
Professional Fees 57
Interest Expense & Bank Fees -
Slotting Fees
Capital Expenditures -
Property Taxes -
Other -
Other - Return of Customer Payment to P & G
-------
Total Disbursements 919
Net Cash Flow 245
-
-
-------
Net Cash Flow 245
Beginning Cash 383
-------
Ending Cash Before Float 628
Outstanding Check Float 573
Deposits Not Credited -
-------
Cash Ledger Balance per Bank $ 1,201
=======
</TABLE>
Note: (1) Includes payment of $63K to Highwoods/Forsyth Ltd
Exhibit 3
<PAGE>
BROTHERS GOURMET COFFEES, INC. AND AFFILIATED DEBTORS
AGING OF ACCOUNTS RECEIVABLE
AS OF NOVEMBER, 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(a) Days Days (a) Receivable Debts Receivable
- -------------- ------------ ------------ ----------- -------------- --------------- ----------
<S> <C> <C> <C> <C> <C> <C>
$ 911 $ 576 $ 43 $ 65 $ 1,595 $ 1,595
Cash sales 6K billed in April $ 10
A/R Other - Rebilling $ 29
Accrued P&G Sales - Current $ 210
A/R Coffee Broker Over 180 Past due $ 171
-------
Total A/R $ 2,015
=======
</TABLE>
Exhibit 4
<PAGE>
BROTHERS GOURMET COFFEES, INC AND AFFILIATED DEBTORS
AGING OF ACCOUNTS PAYABLE
AS OF NOVEMBER, 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>
$ 156 $ (23) $ (10) $ (6) $ 117
Outstanding Checks, Wells Fargo Account No. 337788970 82
Outstanding Checks, Wells Fargo Account No. 337789424 351
Outstanding Checks, Wells Fargo Account No. 4595852287 7
Outstanding Checks, FUNB Account No. 2155300194336 132
--------
Total Accounts Payable $ 689
========
</TABLE>
NOTES:
(a) Post-petition accounts payable debit balance results from prepayments for
inventory/materials not yet received. (includes est.)
(b) Amounts over 90 days consist primarily of 20% holdback on professional fees.
Exhibit 5
<PAGE>
BROTHERS GOURMET COFFEES, INC. AND AFFILIATED DEBTORS
STATUS OF POST-PETITION TAXES
AS OF NOVEMBER 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) $ - $ 70.0 $ 70.0 $ - $ -
Unemployment (a) - - - - -
-----------------------------------------------------------------------------
TOTAL FEDERAL - 70.0 70.0 - -
STATE
Withholding (a) 24.9 - - 24.9 -
Unemployment (a) 0.1 - - 0.1 -
Income 2.3 - - 2.3 -
Property 182.6 29.0 - 211.6 -
Sales 76.9 22.4 - 99.3 -
Franchise (b) 128.2 - - 128.2 -
-----------------------------------------------------------------------------
TOTAL STATE AND LOCAL 415.0 51.4 - 466.4 -
-----------------------------------------------------------------------------
TOTAL TAXES $ 415.0 $ 121.4 $ 70.0 $ 466.4 $ -
=============================================================================
</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 November 30, 1999
($000's)
<TABLE>
<CAPTION>
ACCOUNT #1 ACCOUNT #2 ACCOUNT # 3 ACCOUNT #4 ACCOUNT #5 ACCOUNT #6
A. BANK: FUNB CHASE CHASE FUNB FUNB FUNB
B. ACCOUNT NUMBER: 2000000482626 066-611121 312-7934031-66 2079900003505 2155300194336 2090000011450
C. PURPOSE (TYPE): DEPOSITORY DEPOSITORY CHECKING CHECKING PAYROLL DEPOSITORY
<S> <C> <C> <C> <C> <C> <C>
1. BALANCE PER BANK STATEMENT $ - $ - $ - $ - $ 145.3 $ -
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 (132.1) 0.0
4. OTHER RECONCILING ITEMS 0.0 0.0 0.0 0.0 0.0 0.0
5. MONTH END BALANCE PER BOOKS $ - $ - $ - $ - $ 13.2 $ -
6. NUMBER OF LAST CHECK WRITTEN
<CAPTION>
ACCOUNT #7 ACCOUNT #8 ACCOUNT #9 ACCOUNT #10
A. BANK: WELLS FARGO WELLS FARGO WELLS FARGO WELLS FARGO
B. ACCOUNT NUMBER: 2090000011450 337788970 337789424 4595852287 TOTAL
C. PURPOSE (TYPE): 337789002 CHECKING CHECKING PAYROLL
<S> <C> <C> <C> <C> <C>
1. BALANCE PER BANK STATEMENT $ 0.5 $ 171.1 $ 857.3 $ 26.7 $ 1,200.9
2. ADD: TOTAL DEPOSITS NOT CREDITED 0.0 0.0 0.0 $ -
3. SUBTRACT: OUTSTANDING CHECKS 0.0 (81.9) (351.3) (7.2) $ (572.5)
4. OTHER RECONCILING ITEMS 0.0 0.0 $ -
5. MONTH END BALANCE PER BOOKS $ 0.5 $ 89.2 $ 506.0 $ 19.5 $ 628.4
6. NUMBER OF LAST CHECK WRITTEN
Outstanding Checks, Chase 312-7934031-66 -
Outstanding Checks, FUNB 2155300194336 132.1
Outstanding Checks, WF 4595852287 7.2
Outstanding Checks, WF 337788970 81.9
Outstanding Checks, WF 337789424 351.3
Month End Balance Per Bank $ 1,200.9
</TABLE>
Exhibit 7
<PAGE>
BROTHERS GOURMET COFFEES, INC. AND AFFILIATED DEBTORS
Distributions to Insiders
November 30, 1999
<TABLE>
<CAPTION>
Director's Other Total
Salary (a) Fees Bonus Severance Expense (b) Auto 401(K) Payments
---------- ---------- ------- --------- ----------- ------ ------ --------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
OFFICERS:
Bilmes, Barry 9,615 - - - - - 144 9,760
Pennington, Linda 10,769 - - - 1,592 - 714 13,076
------------------------------------------------------------------------------------------------------
$ 20,385 $ - $ - $ - $ 1,592 $ - $ 859 $ 22,835
======================================================================================================
</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)
For The Month Ending November 30, 1999
<TABLE>
<CAPTION>
NAME TOTAL
---- -----
<S> <C>
Weil, Gotshal & Manges, LLP $ -
Bernard A. Katz $ 4
White & Case, LLP $ 22
Brownstein, Hyatt, Farber & Strickland, P.C. $ -
Richard, Layton & Finger, P.A. $ -
The Bayard Firm $ -
KPMG $ 26
Ernst & Young $ -
Carrigan Chambers Dansky $ 3
Logan & Company $ 3
----
$ 57
====
</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 NOVEMBER 30, 1999
<TABLE>
<CAPTION>
TYPE OF POLICY TERM CARRIER ANNUAL PREMIUM FREQUENCY
-------------- ---- ------- -------------- ---------
<S> <C> <C> <C> <C>
Package 8/1/99 - 5/1/00 The Rowley Agency $ 54,975 Quarterly
TX Auto 8/1/99 - 5/1/00 The Rowley Agency $ 6,652 Quarterly
Workers' Compensation 8/1/99 - 5/1/00 The Rowley Agency $ 69,344 Quarterly
CA Worker's Compensation 8/1/99 - 5/1/00 The Rowley Agency $ 8,565 Quarterly
Umbrella - $10 million 8/1/99 - 5/1/00 The Rowley Agency $ 6,955 Quarterly
Umbrella - $15 million 8/1/99 - 5/1/00 The Rowley Agency $ 5,375 Quarterly
Directors and Officers 8/25/99-12/31/99 *** AON Risk Insurance $ 110,000 Periodic
</TABLE>
*** NOTE: Will Be Extended As Required
Exhibit 10
