-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: webmaster@www.sec.gov Originator-Key-Asymmetric: MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB MIC-Info: RSA-MD5,RSA, RNxGfPZ59qh7MxJHtJBHbrCLCLRZeW91gx0ZD1FNLpzpIkS4FNwptgsGBeYygtnD F1iMTahO85gp0nqOqLf4ig== 0000950144-99-012912.txt : 19991115 0000950144-99-012912.hdr.sgml : 19991115 ACCESSION NUMBER: 0000950144-99-012912 CONFORMED SUBMISSION TYPE: 8-K PUBLIC DOCUMENT COUNT: 4 CONFORMED PERIOD OF REPORT: 19991112 ITEM INFORMATION: ITEM INFORMATION: FILED AS OF DATE: 19991112 FILER: COMPANY DATA: COMPANY CONFORMED NAME: DEVLIEG BULLARD INC CENTRAL INDEX KEY: 0000858710 STANDARD INDUSTRIAL CLASSIFICATION: METALWORKING MACHINERY & EQUIPMENT [3540] IRS NUMBER: 621270573 STATE OF INCORPORATION: DE FISCAL YEAR END: 0731 FILING VALUES: FORM TYPE: 8-K SEC ACT: SEC FILE NUMBER: 000-18198 FILM NUMBER: 99749385 BUSINESS ADDRESS: STREET 1: 1900 CASE PARKWAY SOUTH CITY: TWINSBURG STATE: OH ZIP: 44807 BUSINESS PHONE: 3309630699 MAIL ADDRESS: STREET 1: 1900 CASE PARKWAY SOUTH CITY: TWINSBURG STATE: OH ZIP: 44807 8-K 1 DEVLIEG-BULLARD 1 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): November 12, 1999 (November 12, 1999) DeVlieg-Bullard, Inc. - -------------------------------------------------------------------------------- (Exact Name of Registrant as Specified in its Charter) Delaware 0-18198 62-1270573 - ---------------------------- ------------ ------------------- (State or Other Jurisdiction (Commission (I.R.S. Employer of Incorporation) File Number) Identification No.) 1900 Case Parkway South, Twinsburg, Ohio 44807 - ---------------------------------------------- -------------------- (Address of Principal Executive Offices) (Zip Code) Registrant's telephone number, including area code: (330) 963-0699 Not Applicable - -------------------------------------------------------------------------------- (Former Name or Former Address, if Changed Since Last Report) 2 ITEM 5. OTHER EVENTS. DeVlieg-Bullard, Inc. (the "Company") has filed monthly operating reports for the following periods: (i) July 15, 1999 to July 31, 1999, (ii) August 1, 1999 to August 31, 1999, and (iii) September 1, 1999 to September 30, 1999 (collectively, the "Operating Reports") with the United States Bankruptcy Court for the Northern District of Ohio, copies of portions of which are attached hereto as Exhibits 99.1, 99.2 and 99.3, in connection with its voluntary petition for reorganization under Chapter 11 of title 11 of the United States Bankruptcy Code in Case No. 99-52111. The Company cautions investors or potential investors not to place undue reliance upon the information contained therein. The Operating Reports contain unaudited information, and each is in a format prescribed by the applicable bankruptcy laws. There can be no assurance that, from the perspective of an investor or potential investor in the Company's securities, the Operating Reports are complete. The Operating Reports also contain information for periods which may be shorter or otherwise different from those required in the Company's reports pursuant to the Securities Exchange Act of 1934, as amended (the "Exchange Act"). Such information may not be indicative of the Company's financial condition or operating results for the periods reflected in the Company's financial or operating results for the periods which would be reflected in the Company's financial statements or in its reports pursuant to the Exchange Act. Moreover, the Operating Reports and other communications from the Company may include forward-looking statements subject to various assumptions regarding the Company's operating performance that may not be realized and subject to significant business, economic and competitive uncertainties and contingencies, including those described in this report, many of which are beyond the Company's control. Consequently, such matters should not be regarded as a representation or warranty by the Company that such matters will be realized or are indicative of the Company's financial condition or operating results for future periods. Actual results for such periods may differ materially from the information contained in the Operating Reports, and the Company undertakes no obligations to update or revise such Operating Reports. This Current Report on Form 8-K, and the exhibits filed herewith, may include certain forward-looking statements. Actual results could differ materially from those reflected by the forward-looking statements contained in this document and a number of factors may affect future results, liquidity and capital resources. These factors include the ability of the Company to obtain adequate financing to fund ongoing operations and repay past due payables and Bankruptcy Court confirmation of a plan of reorganization; the ability of the Company to increase its liquidity through divestiture of certain non-core assets; the ability of the Company to obtain sufficient parts from its vendors; the ability of the Company to obtain trade credit from those vendors on favorable terms; the fact that the Company derives a substantial portion of its sales from cyclical industries, including the automotive, aerospace and housing industries; the ability to introduce new products in a timely fashion; the pace of technological changes affecting the products manufactured and services provided by the Company; the Company's substantial debt service requirements, much of which are based on variable rates; and the ability to continue to minimize operating expenses. 2 3 ITEM 7. FINANCIAL STATEMENTS, PRO FORMA FINANCIAL INFORMATION AND EXHIBITS. 99.1 Portions of Operating Report for the month ended July 31, 1999 99.2 Portions of Operating Report for the month ended August 31, 1999 99.3 Portions of Operating Report for the month ended September 30, 1999 3 4 SIGNATURES Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized. DEVLIEG-BULLARD, INC. Date: November 11, 1999 By: /s/ John Haggerty ------------------------------------ John Haggerty Chief Executive Officer 5 EXHIBIT INDEX NO. EXHIBIT --- ------- 99.1 Portions of Operating Report for the month ended July 31, 1999 99.2 Portions of Operating Report for the month ended August 31, 1999 99.3 Portions of Operating Report for the month ended September 30, 1999 EX-99.1 2 PORTIONS OF OPERATING REPORT (MONTH ENDING 7/31) 1 EXHIBIT 99.1 TRANSMITTAL OF FINANCIAL REPORTS AND CERTIFICATION OF COMPLIANCE WITH UNITED STATES TRUSTEE OPERATING REQUIREMENTS FOR THE PERIOD ENDED: JULY 15 - 31, 1999 IN RE: : CASE NO.: 99-52111 Chapter 11 : Judge: Marilyn Shea-Stonum DeVlieg-Bullard, Inc. Debtor : : As debtor in possession, I affirm: 1. That I have reviewed the financial statements attached hereto, consisting of: [X] Operating Statement (Form 2) [X] Balance Sheet (Form 3) [X] Summary of Operations (Form 4) [X] Monthly Cash Statement (Form 5) [X] Statement of Compensation (Form 6) [ ] ---------------------------------------------------- and that they have been prepared in accordance with normal and customary accounting practices, and fairly and accurately reflect the debtor's financial activity for the period stated; 2. That the insurance as described in Section 4 of the Operating Instructions and Reporting Requirements For Chapter 11 Cases IS/IS NOT in effect; and (if not, attach written explanation) 3. That all postpetition taxes as described in Sections 1 and 14 of the Operating Instructions and Reporting Requirements For Chapter 11 cases ARE/ARE NOT current. (Explain on separate sheet if not true.) 4. No professional fees (attorney, accountant, etc.) have been paid without specific court authorization. Explain on separate sheet if not true. I hereby certify, under penalty of perjury, that the information provided herein is true and correct to the best of my information and belief. Dated: 10-14-99 /s/ Scott Gerhartz ------------ --------------------------------------- Debtor in Possession Vice President - Finance 815-282-4100 --------------------------------------- Title Phone 2 OPERATING STATEMENT (P&L) TOTAL (ACCRUAL BASIS) Debtor: DeVlieg Bullard, Inc. Case No: 99-52111 --------------------- -------- Month Ending: July 15 - July 31 -----------------
Current Total Month Since Filing --------------- --------------- Total Revenue / Sales $ 2,121,000.00 $ 2,121,000.00 Cost of Sales $ 1,616,000.00 $ 1,616,000.00 --------------- --------------- Gross Profit $ 505,000.00 $ 505,000.00 =============== =============== EXPENSES: Officer Compensation $ 34,000.00 $ 34,000.00 Salary Expenses $ 436,000.00 $ 436,000.00 Employee Benefits & Pensions $ 112,000.00 $ 112,000.00 Payroll Taxes $ 40,000.00 $ 40,000.00 Other Taxes $ 3,000.00 $ 3,000.00 Rent & Lease Expense $ 94,000.00 $ 94,000.00 Interest Expense $ 2,000.00 $ 2,000.00 Insurance $ 2,000.00 $ 2,000.00 Automobile & Truck Expense $ 54,000.00 $ 54,000.00 Utilities $ 89,000.00 $ 89,000.00 Depreciation $ 54,000.00 $ 54,000.00 Travel and Entertainment $ 30,000.00 $ 30,000.00 Repairs and Maintenance $ 43,000.00 $ 43,000.00 Advertising $ 12,000.00 $ 12,000.00 Supplies, Office Expenses, etc $ 29,000.00 $ 29,000.00 Other Administrative $ 653,000.00 $ 653,000.00 --------------- --------------- TOTAL EXPENSES: $ 1,687,000.00 $ 1,687,000.00 --------------- --------------- NET OPERATING PROFIT / (LOSS) $ (1,182,000.00) $ (1,182,000.00) =============== =============== Add: Non-Operating Income: Interest Income $ -- $ -- Other Income $ -- $ -- Add: Non-Operating Expenses: Professional Fees $ (200,000.00) $ (200,000.00) Other $ (7,000.00) $ (7,000.00) --------------- --------------- NET INCOME / (LOSS) $ (1,389,000.00) $ (1,389,000.00) =============== ===============
Date: ------------ ----------------------------------------------- 3 BALANCE SHEET - CONSOLIDATED Debtor: DeVlieg Bullard, Inc. Case No: 99-52111 --------------------- -------- Month Ending: July 15 - July 31 -----------------
CURRENT MONTH AT FILING --------------- --------------- ASSETS: Cash $ 192,000.00 $ 330,000.00 Inventory $ 36,544,000.00 $ 36,580,500.00 Accounts Receivable $ 11,572,000.00 $ 11,660,000.00 Insider Receivables $ 7,000.00 $ 7,000.00 Land and Buildings $ 3,061,000.00 $ 3,061,000.00 Furniture, Fixtures, & Equip $ 20,946,000.00 $ 20,946,000.00 Accumulated Depreciation $(16,956,000.00) $(16,811,000.00) Other: Prepaid $ 2,055,000.00 $ 1,964,000.00 Other: Intangibles $ 44,367,000.00 $ 44,431,500.00 --------------- --------------- TOTAL ASSETS: $101,788,000.00 $102,169,000.00 =============== =============== LIABILITIES: POSTPETITION LIABILITIES Accounts Payable $ 452,000.00 $ -- Wages and Salaries $ 53,000.00 $ -- Taxes Payable $ -- $ -- Other: $ 349,000.00 $ -- --------------- --------------- TOTAL POSTPETITION LIABILITIES $ 854,000.00 $ -- =============== =============== SECURED LIABILITIES: Subject to Postpetition Collateral or Financing Order $ 26,395,000.00 $ 26,678,000.00 All Other Secured Liab $ 1,047,000.00 $ 1,047,000.00 --------------- --------------- TOTAL SECURED LIABILITIES: $ 27,442,000.00 $ 27,725,000.00 =============== =============== PREPETITION LIABILITIES Taxes and other Priority Liab. $ 2,247,000.00 $ 2,247,000.00 Unsecured Liabilities $ 68,608,000.00 $ 68,171,000.00 Other: Insider Payable $ 3,317,000.00 $ 3,317,000.00 --------------- --------------- TOTAL PREPETITION LIAB. $ 74,172,000.00 $ 73,735,000.00 =============== =============== EQUITY: Owners Capital $ 16,765,000.00 $ 16,765,000.00 Retained Earnings-Pre Pet. $(16,056,000.00) $(16,056,000.00) Retained Earnings-Post Pet. $ (1,389,000.00) $ -- --------------- --------------- TOTAL EQUITY: $ (680,000.00) $ 709,000.00 =============== =============== TOTAL LIABILITIES AND EQUITY: $101,788,000.00 $102,169,000.00 =============== ===============
Date: ------------ ----------------------------------------------- 4 SUMMARY OF OPERATIONS - CONSOLIDATED Debtor: DeVlieg Bullard, Inc. Case No: 99-52111 --------------------- -------- Month Ending: July 15 - July 31 ----------------- SCHEDULE OF POSTPETITION TAXES PAYABLE
BEGINNING ACCRUED/ PAYMENTS/ ENDING BALANCE WITHHELD DEPOSITS BALANCE ----------- ----------- ----------- ----------- INCOME TAXES WITHHELD: Federal: $ -- $ 57,757 $ 57,757 $ -- State: $ -- $ 13,855 $ 13,855 $ -- Local: $ -- $ 2,790 $ 2,790 $ -- FICA WITHHELD: $ -- $ 30,461 $ 30,461 $ -- EMPLOYERS FICA: $ -- $ 30,461 $ 30,461 $ -- UNEMPLOYMENT TAX: Federal: $ -- $ -- $ -- $ -- State: $ -- $ -- $ -- $ -- SALES, USE & EXCISE TAXES: $ -- $ -- $ -- $ -- PROPERTY TAXES: $ -- $ 38,174 $ -- $ 38,174 WORKERS' COMPENSATION $ -- $ 100,987 $ -- $ 100,987 OTHER: $ -- $ 620 $ 620 $ -- ----------- ----------- ----------- ----------- TOTALS: $ -- $ 275,106 $ 135,944 $ 139,161 =========== =========== =========== ===========
AGING OF ACCOUNTS RECEIVABLE AND POSTPETITION ACCOUNTS PAYABLE
Age in Days 0-30 OVER 30 OVER 60 Post Petition Accounts Payable $ 452,000 $ -- $ -- Accounts Receivable $3,564,000 $2,403,000 $5,605,000
For all postpetition accounts payable over 30 days old, please attach a sheet listing each such account, to whom the account is owed, the date the account was opened, and the reason for non-payment of the account. Date: ------------ ----------------------------------------------- 5 MONTHLY CASH STATEMENT - CONSOLIDATED Debtor: DeVlieg Bullard, Inc. Case No: 99-52111 --------------------- -------- Month Ending: July 15 - July 31 ----------------- Cash Activity Analysis (Cash Basis Only)
General Payroll Tax Cash Collection Account Account Account Account ---------- --------- --------- ---------- A. Beginning Balance $ -- $ (20,850) $ -- $ 139,443 B. Receipts $1,533,883 $ 821,923 $ -- $2,650,873 C. Balance Available $1,533,883 $ 801,073 $ -- $2,790,316 D. Less Disbursements $1,229,142 $ 610,016 $ -- $2,331,000 ---------- --------- --------- ---------- E. Ending Balance $ 304,741 $ 191,058 $ -- $ 459,316 ========== ========= ========= ==========
(PLEASE ATTACH COPIES OF MOST RECENT RECONCILED BANK STATEMENTS FROM EACH ACCOUNT) GENERAL ACCOUNT: 1. Depository Name & Location ------------------------------------------- 2. Account Number ------------------------------------------- see attached schedule: DeVlieg Other Accounts ------------------------------------------- PAYROLL ACCOUNT: 1. Depository Name & Location ------------------------------------------- 2. Account Number ------------------------------------------- see attached schedule: DeVlieg Other Accounts ------------------------------------------- TAX ACCOUNT: 1. Depository Name & Location ------------------------------------------- 2. Account Number ------------------------------------------- Other Monies on Hand (Specify type and location) ( I.e. CD's, petty cash) ------------------------------------------------------------------------- ------------------------------------------------------------------------- see attached schedule: DeVlieg Other Accounts Date: ------------ ----------------------------------------------- 6 DEVLIEG OTHER ACCOUNTS Debtor: DeVlieg Bullard, Inc. Case No: 99-52111 --------------------- -------- Month Ending: July 15 - July 31 ----------------- SERVICES GROUP GENERAL ACCOUNT: 1. Depository Name & Location National City Bank --------------------------------------- 2. Account Number 628513872 --------------------------------------- PAYROLL ACCOUNT: 1. Depository Name & Location Bank One --------------------------------------- 2. Account Number 615841137 (Closed August 31, 1999) --------------------------------------- Other Monies on Hand (Specify type and location) ( I.e. CD's, petty cash) Account Previously used for Machine Tool P/R: $ 5,227.64 balance - Bank One Acct. #: 615841145 --------------------------------------------------------------------- --------------------------------------------------------------------- POWERMATIC GENERAL ACCOUNT: 1. Depository Name & Location First National Bank - McMinnville, TN --------------------------------------- 2. Account Number 004-452-4 --------------------------------------- PAYROLL ACCOUNT: 1. Depository Name & Location Union Planters - McMinnville, TN (Closed out as of 8/31/99) --------------------------------------- 2. Account Number 0000 913855 --------------------------------------- Other Monies on Hand (Specify type and location) ( I.e. CDs, petty cash) Local Account: $5000.00 balance/Petty Cash Account: $2000.00 balance --------------------------------------------------------------------- --------------------------------------------------------------------- TOOLING SYSTEMS DIVISION GENERAL ACCOUNT: 1. Depository Name & Location Citizens Bank Frankenmuth, MI --------------------------------------- 2. Account Number 4511613327 --------------------------------------- Other Monies on Hand (Specify type and location) ( I.e. CD's, petty cash) Petty Cash Frankenmuth: $750.00/Gladwin Stock Room: $1000/Gladwin Manufacturing: --------------------------------------------------------------------- $450/Actual amounts were under $500 combined --------------------------------------------------------------------- EX-99.2 3 PORTIONS OF OPERATING REPORT (MONTH ENDING 8/31) 1 EXHIBIT 99.2 TRANSMITTAL OF FINANCIAL REPORTS AND CERTIFICATION OF COMPLIANCE WITH UNITED STATES TRUSTEE OPERATING REQUIREMENTS FOR THE PERIOD ENDED: AUGUST 31, 1999 IN RE: : CASE NO.: 99-52111 Chapter 11 : Judge: Marilyn Shea-Stonum DeVlieg-Bullard, Inc. Debtor : : As debtor in possession, I affirm: 1. That I have reviewed the financial statements attached hereto, consisting of: [X] Operating Statement (Form 2) [X] Balance Sheet (Form 3) [X] Summary of Operations (Form 4) [X] Monthly Cash Statement (Form 5) [X] Statement of Compensation (Form 6) [ ] ---------------------------------------------------- and that they have been prepared in accordance with normal and customary accounting practices, and fairly and accurately reflect the debtor's financial activity for the period stated; 2. That the insurance as described in Section 4 of the Operating Instructions and Reporting Requirements For Chapter 11 Cases IS/IS NOT in effect; and (if not, attach written explanation) 3. That all postpetition taxes as described in Sections 1 and 14 of the Operating Instructions and Reporting Requirements For Chapter 11 cases ARE/ARE NOT current. (Explain on separate sheet if not true.) 4. No professional fees (attorney, accountant, etc.) have been paid without specific court authorization. Explain on separate sheet if not true. I hereby certify, under penalty of perjury, that the information provided herein is true and correct to the best of my information and belief. Dated: 10-20-99 /s/ Scott Gerhartz ------------ --------------------------------------- Debtor in Possession Vice President - Finance 815-282-4100 --------------------------------------- Title Phone 2 OPERATING STATEMENT (P&L) TOTAL REVISED (ACCRUAL BASIS) Debtor: DeVlieg Bullard, Inc. Case No: 99-52111 --------------------- -------- Month Ending: 31-Aug-99 ----------
Current Total Month Since Filing 7/31/99 ----------- ------------ ----------- Total Revenue / Sales $ 5,132,303 $ 7,254,303 $ 2,122,000 Cost of Sales $ 3,027,663 $ 4,581,163 $ 1,553,500 Amortization $ 125,000 $ 187,500 $ 62,500 ----------- ----------- ----------- Gross Profit $ 1,979,640 $ 2,485,640 $ 506,000 =========== =========== =========== EXPENSES: Officer Compensation $ 59,000 $ 93,000 $ 34,000 Salary Expenses $ 752,206 $ 1,188,206 $ 436,000 Employee Benefits & Pensions $ 131,103 $ 243,103 $ 112,000 Payroll Taxes $ 85,893 $ 125,893 $ 40,000 Other Taxes $ 8,000 $ 11,000 $ 3,000 Rent & Lease Expense $ 137,475 $ 231,475 $ 94,000 Interest Expense $ 319,000 $ 321,000 $ 2,000 Insurance $ 10,000 $ 12,000 $ 2,000 Automobile & Truck Expense $ 2,813 $ 56,813 $ 54,000 Utilities $ 135,130 $ 224,130 $ 89,000 Depreciation $ 135,083 $ 190,083 $ 55,000 Travel and Entertainment $ 98,253 $ 128,253 $ 30,000 Repairs and Maintenance $ 16,200 $ 59,200 $ 43,000 Advertising $ 15,000 $ 27,000 $ 12,000 Supplies, Office Expenses, etc $ 92,890 $ 121,890 $ 29,000 Other Administrative $ 187,931 $ 840,931 $ 653,000 ----------- ----------- ----------- TOTAL EXPENSES: $ 2,185,977 $ 3,873,977 $ 1,688,000 ----------- ----------- ----------- NET OPERATING PROFIT / (LOSS) $ (206,337) $(1,388,337) $(1,182,000) =========== =========== =========== Add: Non-Operating Income: Interest Income $ -- $ -- $ -- Other Income $ 1,000 $ 1,000 $ -- Add: Non-Operating Expenses: Professional Fees $ (278,000) $ (478,000) $ (200,000) Other $ (35,000) $ (42,000) $ (7,000) ----------- ----------- ----------- NET INCOME / (LOSS) $ (518,337) $(1,907,337) $(1,389,000) =========== =========== ===========
Date: ------------ ----------------------------------------------- 3 BALANCE SHEET - CONSOLIDATED REVISED Debtor: DeVlieg Bullard, Inc. Case No: 99-52111 --------------------- -------- Month Ending: 31-Aug-99 ---------
ASSETS: CURRENT MONTH PRIOR MONTH AT FILING ------------- ------------- ------------- Cash $ 65,000 $ 192,000 $ 330,000 Inventory $ 34,887,000 $ 36,544,000 $ 36,580,500 Accounts Receivable $ 13,039,596 $ 11,572,000 $ 11,660,000 Insider Receivables $ 7,000 $ 7,000 $ 7,000 Land and Buildings $ 3,061,000 $ 3,061,000 $ 3,061,000 Furniture, Fixtures, & Equip $ 20,946,000 $ 20,946,000 $ 20,946,000 Accumulated Depreciation $ (17,032,674) $ (16,956,000) $ (16,811,000) Other: Prepaid $ 2,889,000 $ 2,055,000 $ 1,964,000 Other: Intangibles $ 44,089,000 $ 44,367,000 $ 44,431,500 ------------- ------------- ------------- TOTAL ASSETS: $ 101,950,922 $ 101,788,000 $ 102,169,000 ============= ============= ============= LIABILITIES: POSTPETITION LIABILITIES Accounts Payable $ 455,000 $ 452,000 $ -- Wages and Salaries $ 355,000 $ 53,000 $ -- Taxes Payable $ 55,000 $ -- $ -- Other: $ 397,775 $ 349,000 $ -- ------------- ------------- ------------- TOTAL POSTPETITION LIABILITIES $ 1,262,775 $ 854,000 $ -- ============= ============= ============= SECURED LIABILITIES: Subject to Postpetition Collateral or Financing Order $ 27,039,484 $ 26,395,000 $ 26,678,000 All Other Secured Liab $ 1,047,000 $ 1,047,000 $ 1,047,000 ------------- ------------- ------------- TOTAL SECURED LIABILITIES: $ 28,086,484 $ 27,442,000 $ 27,725,000 ============= ============= ============= PREPETITION LIABILITIES Taxes and Other Priority Liab $ 2,093,000 $ 2,247,000 $ 2,247,000 Unsecured Liabilities $ 68,620,000 $ 68,608,000 $ 68,171,000 Other: Insider Payable $ 3,317,000 $ 3,317,000 $ 3,317,000 ------------- ------------- ------------- TOTAL PREPETITION LIAB $ 74,030,000 $ 74,172,000 $ 73,735,000 ============= ============= ============= EQUITY: Owners Capital $ 16,765,000 $ 16,765,000 $ 16,765,000 Retained Earnings-Pre Pet $ (16,286,000) (1) $ (16,056,000) $ (16,056,000) Retained Earnings-Post Pet $ (1,907,337) $ (1,389,000) $ -- ------------- ------------- ------------- TOTAL EQUITY: $ (1,428,337) $ (680,000) $ 709,000 ============= ============= ============= TOTAL LIABILITIES AND EQUITY: $ 101,950,922 $ 101,788,000 $ 102,169,000 ============= ============= =============
(1) Prepetition retained earnings were charged $ 230,000 for prepetition accounts payable located subsequent to filing. Date: ------------ ----------------------------------------------- 4 SUMMARY OF OPERATIONS - CONSOLIDATED Debtor: DeVlieg Bullard, Inc. Case No: 99-52111 --------------------- -------- Month Ending: 31-Aug-99 --------- SCHEDULE OF POSTPETITION TAXES PAYABLE
BEGINNING ACCRUED/ PAYMENTS/ ENDING BALANCE WITHHELD DEPOSITS BALANCE ------- -------- -------- --------- INCOME TAXES WITHHELD: Federal: $ -- $158,000 $158,000 $ -- State: $ -- $ 31,000 $ 31,000 $ -- Local: $ -- $ 5,000 $ 5,000 $ -- FICA WITHHELD: $ -- $ 86,000 $ 86,000 $ -- EMPLOYERS FICA: $ -- $ 86,000 $ 86,000 $ -- UNEMPLOYMENT TAX: Federal: $ -- $ -- $ -- $ -- State: $ -- $ -- $ -- $ -- SALES, USE & EXCISE TAXES: $ 1,000 $ -- $ 5,000 $ (4,000) PROPERTY TAXES: $44,000 $ 4,000 $ -- $ 48,000 WORKERS' COMPENSATION $51,000 $138,000 $ -- $ 189,000 OTHER: $ -- $ 1,000 $ 1,000 $ -- ------- -------- -------- --------- TOTALS: $96,000 $509,000 $372,000 $ 233,000 ======= ======== ======== =========
AGING OF ACCOUNTS RECEIVABLE AND POSTPETITION ACCOUNTS PAYABLE
Age in Days 0-30 OVER 30 OVER 60 Post Petition Accounts Payable $ 388,000 $ 67,000 $ -- Accounts Receivable $7,957,000 $2,104,000 $3,082,000
For all postpetition accounts payable over 30 days old, please attach a sheet listing each such account, to whom the account is owed, the date the account was opened, and the reason for non-payment of the account. Date: ------------ ----------------------------------------------- 5 MONTHLY CASH STATEMENT - CONSOLIDATED Debtor: DeVlieg Bullard, Inc. Case No: 99-52111 --------------------- -------- Month Ending: 31-Aug-99 --------- Cash Activity Analysis (Cash Basis Only)
General Payroll Tax Cash Collection Account Account Account Account ---------- --------- --------- ---------- A. Beginning Balance $ 501,000 $ 191,058 $ -- $ -- B. Receipts $2,862,000 $1,315,382 $ -- $ -- C. Balance Available $3,363,000 $1,506,440 $ -- $ -- D. Less Disbursements $3,296,000 $1,291,978 $ -- $ -- ---------- ---------- ---------- -------- E. Ending Balance $ 67,000 $ 214,462 $ -- $ -- ========== ========== ========== ========
(PLEASE ATTACH COPIES OF MOST RECENT RECONCILED BANK STATEMENTS FROM EACH ACCOUNT) GENERAL ACCOUNT: 1. Depository Name & Location -------------------------------------------- 2. Account Number -------------------------------------------- see attached schedule: DeVlieg Other Accounts -------------------------------------------- PAYROLL ACCOUNT: 1. Depository Name & Location ------------------------------------------- 2. Account Number ------------------------------------------- see attached schedule: DeVlieg Other Accounts ------------------------------------------- TAX ACCOUNT: 1. Depository Name & Location ------------------------------------------- 2. Account Number ------------------------------------------- Other Monies on Hand (Specify type and location) ( I.e. CD's, petty cash) ------------------------------------------------------------------------- ------------------------------------------------------------------------- see attached schedule: DeVlieg Other Accounts Date: ------------ ----------------------------------------------- 6 DEVLIEG OTHER ACCOUNTS Debtor: DeVlieg Bullard, Inc. Case No: 99-52111 --------------------- -------- Month Ending: 31-Aug-99 --------- SERVICES GROUP GENERAL ACCOUNT: 1. Depository Name & Location National City Bank --------------------------------------- 2. Account Number 628513872 & 628513933 --------------------------------------- PAYROLL ACCOUNT: 1. Depository Name & Location Bank One --------------------------------------- 2. Account Number 615841137 (Closed August 31, 1999) --------------------------------------- Other Monies on Hand (Specify type and location) ( I.e. CD's, petty cash) --------------------------------------------------------------------- --------------------------------------------------------------------- POWERMATIC GENERAL ACCOUNT: 1. Depository Name & Location First National Bank - McMinnville, TN --------------------------------------- 2. Account Number 004-452-4 --------------------------------------- PAYROLL ACCOUNT: 1. Depository Name & Location Union Planters - McMinnville, TN (Closed out as of 8/31/99) --------------------------------------- 2. Account Number 0000 913855 --------------------------------------- Other Monies on Hand (Specify type and location) ( I.e. CDs, petty cash) --------------------------------------------------------------------- --------------------------------------------------------------------- TOOLING SYSTEMS DIVISION GENERAL ACCOUNT: 1. Depository Name & Location Citizens Bank Frankenmuth, MI --------------------------------------- 2. Account Number 4511613327 --------------------------------------- PAYROLL ACCOUNT: 1. Depository Name & Location National City Bank - royal Oak, MI --------------------------------------- 2. Account Number 628520562 --------------------------------------- Other Monies on Hand (Specify type and location) ( I.e. CD's, petty cash) National City Bank Acct. #: 628520925 - Balance: $.01 --------------------------------------------------------------------- --------------------------------------------------------------------- 7 DEVLIEG - NOTES TO MONTHLY OPERATING REPORTS Debtor: DeVlieg Bullard, Inc. Case No: 99-52111 --------------------- -------- Month Ending: 31-Aug-99 ---------- NOTES TO MONTHLY OPERATING REPORTS EX-99.3 4 PORTIONS OF OPERATING REPORT (MONTH ENDING 9/30) 1 EXHIBIT 99.3 TRANSMITTAL OF FINANCIAL REPORTS AND CERTIFICATION OF COMPLIANCE WITH UNITED STATES TRUSTEE OPERATING REQUIREMENTS FOR THE PERIOD ENDED: SEPTEMBER 30, 1999 IN RE: : CASE NO.: 99-52111 Chapter 11 : Judge: Marilyn Shea-Stonum DeVlieg-Bullard, Inc. Debtor : : As debtor in possession, I affirm: 1. That I have reviewed the financial statements attached hereto, consisting of: [X] Operating Statement (Form 2) [X] Balance Sheet (Form 3) [X] Summary of Operations (Form 4) [X] Monthly Cash Statement (Form 5) [X] Statement of Compensation (Form 6) [ ] ---------------------------------------------------- and that they have been prepared in accordance with normal and customary accounting practices, and fairly and accurately reflect the debtor's financial activity for the period stated; 2. That the insurance as described in Section 4 of the Operating Instructions and Reporting Requirements For Chapter 11 Cases IS/IS NOT in effect; and (if not, attach written explanation) 3. That all postpetition taxes as described in Sections 1 and 14 of the Operating Instructions and Reporting Requirements For Chapter 11 cases ARE/ARE NOT current. (Explain on separate sheet if not true. 4. No professional fees (attorney, accountant, etc.) have been paid without specific court authorization. Explain on separate sheet if not true. I hereby certify, under penalty of perjury, that the information provided herein is true and correct to the best of my information and belief. Dated: 11-2-99 /s/ Scott Gerhartz ------------ --------------------------------------- Debtor in Possession Vice President 815-282-4100 --------------------------------------- Title Phone 2 OPERATING STATEMENT (P&L) TOTAL (ACCRUAL BASIS) Debtor: DeVlieg Bullard, Inc. Case No: 99-52111 --------------------- -------- Month Ending: 30-Sep-99 ---------
Current Total Month Since Filing 8/31/99 ----------- ------------ ----------- Total Revenue / Sales $ 5,105,011 $ 12,359,314 $ 5,132,303 Cost of Sales $ 3,122,015 $ 7,765,678 $ 3,027,663 Amortization $ 125,000 $ 250,000 $ 125,000 ----------- ------------ ----------- Gross Profit $ 1,857,996 $ 4,343,636 $ 1,979,640 =========== ============ =========== EXPENSES: Officer Compensation $ 51,174 $ 144,174 $ 59,000 Salary Expenses $ 789,255 $ 1,977,461 $ 752,206 Employee Benefits & Pensions $ 132,750 $ 375,853 $ 131,103 Payroll Taxes $ 97,394 $ 223,287 $ 85,893 Other Taxes $ 21,313 $ 32,313 $ 8,000 Rent & Lease Expense $ 111,800 $ 343,275 $ 137,475 Interest Expense $ 309,000 $ 630,000 $ 319,000 Insurance $ 10,248 $ 22,248 $ 10,000 Automobile & Truck Expense $ 24,883 $ 81,696 $ 2,813 Utilities $ 82,645 $ 306,775 $ 135,130 Depreciation $ 112,083 $ 302,166 $ 135,083 Travel and Entertainment $ 103,047 $ 231,300 $ 98,253 Repairs and Maintenance $ 38,410 $ 97,610 $ 16,200 Advertising $ 47,000 $ 74,000 $ 15,000 Supplies, Office Expenses, etc $ 101,344 $ 223,234 $ 92,890 Other Administrative $ 300,440 $ 1,141,371 $ 187,931 ----------- ------------ ----------- TOTAL EXPENSES: $ 2,332,786 $ 6,206,763 $ 2,185,977 ----------- ------------ ----------- NET OPERATING PROFIT / (LOSS) $ (474,790) $ (1,863,127) $ (206,337) =========== ============ =========== Add: Non-Operating Income: Interest Income $ -- $ -- $ -- Other Income $ -- $ 1,000 $ 1,000 Add: Non-Operating Expenses: Professional Fees $ (160,000) $ (638,000) $ (278,000) Other $ (36,250) $ (78,250) $ (35,000) ----------- ------------ ----------- NET INCOME / (LOSS) $ (671,040) $ (2,578,377) $ (518,337) =========== ============ ===========
Date: ------------ ----------------------------------------------- 3 BALANCE SHEET - CONSOLIDATED Debtor: DeVlieg Bullard, Inc. Case No: 99-52111 --------------------- -------- Month Ending: 30-Sep-99 ---------
CURRENT MONTH PRIOR MONTH AT FILING ------------- ------------- ------------- ASSETS: Cash $ 183,559 $ 65,000 $ 330,000 Inventory $ 34,838,646 $ 34,887,000 $ 36,580,500 Accounts Receivable $ 13,378,013 $ 13,143,000 $ 11,660,000 Insider Receivables $ 7,000 $ 7,000 $ 7,000 Land and Buildings $ 3,061,480 $ 3,061,000 $ 3,061,000 Furniture, Fixtures, & Equip $ 20,945,905 $ 20,946,000 $ 20,946,000 Accumulated Depreciation $ (17,107,990) $ (17,014,000) $ (16,811,000) Other: Prepaid $ 2,424,804 $ 2,889,000 $ 1,964,000 Other: Intangibles $ 44,043,593 $ 44,089,000 $ 44,431,500 ------------- ------------- ------------- TOTAL ASSETS: $ 101,775,010 $ 102,073,000 $ 102,169,000 ============= ============= ============= LIABILITIES: POSTPETITION LIABILITIES Accounts Payable $ 641,000 $ 455,000 $ -- Wages and Salaries $ 355,000 $ 355,000 $ -- Taxes Payable $ 6,000 $ 55,000 $ -- Other Accrued $ 505,767 $ 636,000 $ -- ------------- ------------- ------------- TOTAL POSTPETITION LIABILITIES $ 1,507,767 $ 1,501,000 $ -- ============= ============= ============= SECURED LIABILITIES: Subject to Postpetition Collateral or Financing Order $ 27,168,620 $ 26,748,000 $ 26,678,000 All Other Secured Liab $ 1,047,000 $ 1,047,000 $ 1,047,000 ------------- ------------- ------------- TOTAL SECURED LIABILITIES: $ 28,215,620 $ 27,795,000 $ 27,725,000 ============= ============= ============= PREPETITION LIABILITIES Taxes and Other Priority Liab $ 2,073,000 $ 2,093,000 $ 2,247,000 Unsecured Liabilities $ 68,761,000 $ 68,620,000 $ 68,171,000 Other: Insider Payable $ 3,317,000 $ 3,317,000 $ 3,317,000 ------------- ------------- ------------- TOTAL PREPETITION LIAB. $ 74,151,000 $ 74,030,000 $ 73,735,000 ============= ============= ============= EQUITY: Owners Capital $ 16,765,000 $ 16,765,000 $ 16,765,000 Retained Earnings-Pre Pet. $ (16,286,000) $ (16,286,000) $ (16,056,000) Retained Earnings-Post Pet. $ (2,578,377) $ (1,907,337) $ -- ------------- ------------- ------------- TOTAL EQUITY: $ (2,099,377) $ (1,428,337) $ 709,000 ============= ============= ============= TOTAL LIABILITIES AND EQUITY: $ 101,775,010 $ 101,897,663 $ 102,169,000 ============= ============= =============
Date: ------------ ----------------------------------------------- 4 SUMMARY OF OPERATIONS - CONSOLIDATED Debtor: DeVlieg Bullard, Inc. Case No: 99-52111 --------------------- -------- Month Ending: 30-Sep-99 --------- SCHEDULE OF POSTPETITION TAXES PAYABLE
BEGINNING ACCRUED/ PAYMENTS/ ENDING BALANCE WITHHELD DEPOSITS BALANCE -------- -------- -------- -------- INCOME TAXES WITHHELD: Federal: $ -- $189,000 $189,000 $ -- State: $ -- $ 43,000 $ 43,000 $ -- Local: $ -- $ 6,000 $ 6,000 $ -- FICA WITHHELD: $ -- $107,000 $107,000 $ -- EMPLOYERS FICA: $ -- $107,000 $107,000 $ -- UNEMPLOYMENT TAX: Federal: $ 4,000 $ -- $ -- $ 4,000 State: $(63,000) $ 1,000 $ 1,000 $(63,000) SALES, USE & EXCISE TAXES: $ -- $ -- $ 2,000 $ (2,000) PROPERTY TAXES: $ 49,000 $ 4,000 $ -- $ 53,000 WORKERS' COMPENSATION $ -- $ 32,000 $ -- $ 32,000 OTHER: $ -- $ -- $ -- $ -- -------- -------- -------- -------- TOTALS: $(10,000) $489,000 $455,000 $ 24,000 ======== ======== ======== ========
AGING OF ACCOUNTS RECEIVABLE AND POSTPETITION ACCOUNTS PAYABLE
Age in Days 0-30 OVER 30 OVER 60 Post Petition Accounts Payable $ 560,298 $ 80,702 $ -- Accounts Receivable $9,960,000 $2,323,000 $1,087,000
For all postpetition accounts payable over 30 days old, please attach a sheet listing each such account, to whom the account is owed, the date the account was opened, and the reason for non-payment of the account. Date: ------------ ----------------------------------------------- 5 MONTHLY CASH STATEMENT - CONSOLIDATED Debtor: DeVlieg Bullard, Inc. Case No: 99-52111 --------------------- -------- Month Ending: 30-Sep-99 --------- Cash Activity Analysis (Cash Basis Only)
General Payroll Tax Cash Collection Account Account Account Account ---------- ---------- ---------- -------- A. Beginning Balance $ 317,000 $ 214,000 $ -- $ -- B. Receipts $2,681,000 $1,035,000 $ -- $ -- C. Balance Available $2,998,000 $1,249,000 $ -- $ -- D. Less Disbursements $2,815,145 $ 993,000 $ -- $ -- ---------- ---------- ---------- -------- E. Ending Balance $ 182,855 $ 256,000 $ -- $ -- ========== ========== ========== ========
(PLEASE ATTACH COPIES OF MOST RECENT RECONCILED BANK STATEMENTS FROM EACH ACCOUNT) GENERAL ACCOUNT: 1. Depository Name & Location ------------------------------------------- 2. Account Number ------------------------------------------- see attached schedule: DeVlieg Other Accounts ------------------------------------------- PAYROLL ACCOUNT: 1. Depository Name & Location ------------------------------------------- 2. Account Number ------------------------------------------- see attached schedule: DeVlieg Other Accounts ------------------------------------------- TAX ACCOUNT: 1. Depository Name & Location ------------------------------------------- 2. Account Number ------------------------------------------- Other Monies on Hand (Specify type and location) ( I.e. CD's, petty cash) ------------------------------------------------------------------------- ------------------------------------------------------------------------- see attached schedule: DeVlieg Other Accounts Date: ------------ ----------------------------------------------- 6 DEVLIEG OTHER ACCOUNTS Debtor: DeVlieg Bullard, Inc. Case No: 99-52111 --------------------- -------- Month Ending: 30-Sep-99 --------- SERVICES GROUP GENERAL ACCOUNT: 1. Depository Name & Location National City Bank --------------------------------------- 2. Account Number 628513872 & 628513933 --------------------------------------- PAYROLL ACCOUNT: 1. Depository Name & Location Bank One --------------------------------------- 2. Account Number 615841137 (Closed August 31, 1999) --------------------------------------- Other Monies on Hand (Specify type and location) ( I.e. CD's, petty cash) --------------------------------------------------------------------- --------------------------------------------------------------------- POWERMATIC GENERAL ACCOUNT: 1. Depository Name & Location First National Bank - McMinnville, TN --------------------------------------- 2. Account Number 004-452-4 --------------------------------------- PAYROLL ACCOUNT: 1. Depository Name & Location Union Planters - McMinnville, TN (Closed out as of 8/31/99) --------------------------------------- 2. Account Number 0000 913855 --------------------------------------- Other Monies on Hand (Specify type and location) ( I.e. CDs, petty cash) --------------------------------------------------------------------- --------------------------------------------------------------------- TOOLING SYSTEMS DIVISION GENERAL ACCOUNT: 1. Depository Name & Location Citizens Bank Frankenmuth, MI --------------------------------------- 2. Account Number 4511613327 --------------------------------------- PAYROLL ACCOUNT: 1. Depository Name & Location National City Bank - Frankenmuth, MI --------------------------------------- 2. Account Number 628520925 --------------------------------------- Other Monies on Hand (Specify type and location) ( I.e. CD's, petty cash) --------------------------------------------------------------------- --------------------------------------------------------------------- 7 DEVLIEG-NOTES TO MONTHLY OPERATING REPORTS Debtor: DeVlieg Bullard, Inc. Case No: 99-52111 --------------------- -------- Month Ending: 30-Sep-99 --------- NOTES TO MONTHLY OPERATING REPORTS (1) Due to the recent sale of the Powermatic Division, the Powermatic financial information has not been closed for the month of September 1999. However, certain financial information, pursuant to bank reporting requirements has been provided and that information has been utilized to estimate the results provided herein.
ACCOUNTS DUE PAST 30 DAYS VENDOR DATE AMOUNT REASON Argus Management 08/11 -08/19 $ 32,074.06 Waiting on Court Approval AT&T 25-Aug $ 10,380.19 Timing of Invoice Receipt Pure Tech Systems 8/10 - 8/16 $ 9,731.75 Receipt of Product Issue HDH Group 13-Aug $ 28,516.00 Resolving COBRA employee issues ------------- $ 80,702.00 =============
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