EX-99.5 7 ex99-5.txt TESSERACT OCTOBER 2001 MONTHLY REPORT Exhibit 99.5 IN THE UNITED STATES BANKRUPTCY COURT FOR THE DISTRICT OF ARIZONA In re: ) CASE NO. B-00-10938-ECF-RTB ) THE TESSERACT GROUP, INC. ) BUSINESS AND INDUSTRY ) MONTHLY OPERATING REPORT ) ) MONTH OF OCTOBER ) Debtor(s) ) DATE PETITION FILED: October 6, 2000 ) ) TAX PAYER ID NO. 4101581297 Nature of Debtor's Business: For Profit Educational Services DATE DISCLOSURE STATEMENT: FILED Not Yet Filed TO BE FILED To Be Determined ------------- ---------------- DATE PLAN OF REORGANIZATION: FILED Not Yet Filed TO BE FILED To Be Determined ------------- ---------------- I CERTIFY UNDER PENALTY OF PERJURY THAT THE FOLLOWING MONTHLY OPERATING REPORT AND THE ACCOMPANYING ATTACHMENTS ARE TRUE AND CORRECT TO THE BEST OF MY KNOWLEDGE. RESPONSIBLE PARTY: CEO ---------------------------------------- ---------- ORIGINAL SIGNATURE OF RESPONSIBLE PARTY TITLE Michael Lynch ---------------------------------------- ---------- PRINTED NAME OF RESPONSIBLE PARTY DATE PREPARER: Controller ---------------------------------------- ---------- ORIGINAL SIGNATURE OF PREPARER TITLE Douglass E. Snell ---------------------------------------- ---------- PRINTED NAME OF PREPARER DATE PERSON TO CONTACT REGARDING THIS REPORT: Douglass E. Snell --------------------------------------- PHONE NUMBER: 602-300-6257 --------------------------------------- ADDRESS: 1777 W. Camelback Rd., J109 Phoenix, AZ 85015 --------------------------------------- ORIGINAL OF REPORT IS FILED WITH THE COURT, COPY IS FILED WITH U.S. TRUSTEE'S OFFICE THE TESSERACT GROUP, INC. B-00-10938-ECF-RTB MONTH: OCTOBER 2001 RECEIPTS AND DISBURSEMENTS
BANK ACCOUNTS ----------------------------------------------------------------------------------------------- Amounts reported should be NATIONAL GROUP GROUP GROUP TESSERACT GROUP TESSERACT per the debtor's books, DEPOSITORY DEPOSITORY MEDICAL PAYROLL OPERATING CHARTER not per the bank statement #944-010-7759 #022-922-6741 #022-922-6576 #022-922-6576 #022-978-8101 #022-922-6808 ------------- ------------- ------------- ------------- ------------- ------------- ACCOUNT BALANCE - BEGINNING OF MONTH -- 1,320,141.09 -- -- -- 480.41 RECEIPTS STUDENT FEES -- CHARTER SCHOOL REVENUE -- ACCOUNTS RECEIVABLE 26,908.76 INTEREST 1,322.24 SALE OF ASSETS TRANSFERS IN FROM OTHER ACCOUNTS 25,615.46 -- -- 65,437.00 -- OTHER (ATTACH LIST) TOTAL RECEIPTS 26,908.76 26,937.70 -- -- 65,437.00 -- DISBURSEMENTS BUSINESS - ORDINARY OPERATIONS 1773.71 -- -- 32,718.50 -- CAPITAL IMPROVEMENTS PRE-PETITION DEBT TRANSFERS TO OTHER DIP ACCOUNTS 25,135.05 65,437.00 480.41 PAYMENTS MADE FOR SUNRISE EDU. -- -- 32,718.50 OTHER (VOIDS) REORGANIZATION EXPENSES: ATTORNEY FEES ACCOUNTANT FEES OTHER PROFESSIONAL FEES U.S. TRUSTEE QUARTERLY FEE COURT COSTS TOTAL DISBURSEMENTS 26,908.76 65,437.00 -- -- 65,437.00 480.41 ------------ ------------- ----------- ------------ ------------ ------------- ACCOUNT BALANCE - END OF MONTH -- 1,281,641.79 -- -- -- -- ============ ============= =========== ============ ============ ============= BANK ACCOUNTS ------------------------------------------------------------------------------------- Amounts reported should be CHARTER FIRST FEDERAL CREDITOR per the debtor's books, EXTRACURRICULAR CREDIT UNION RESERVE NE CAPITAL not per the bank statement #022-922-7442 #4002-0270-922 #052-980-2118 RESERVE TOTAL ------------- -------------- ------------- ---------------- ---------------- ACCOUNT BALANCE - BEGINNING OF MONTH -- -- 418,682.44 585,000.00 2,324,303.94 RECEIPTS STUDENT FEES -- CHARTER SCHOOL REVENUE -- ACCOUNTS RECEIVABLE 26,908.76 INTEREST 295.59 1,617.83 SALE OF ASSETS -- -- TRANSFERS IN FROM OTHER ACCOUNTS 91,052.46 OTHER (ATTACH LIST) -- TOTAL RECEIPTS -- -- 295.59 -- 119,579.05 DISBURSEMENTS BUSINESS - ORDINARY OPERATIONS 34,492.21 CAPITAL IMPROVEMENTS -- PRE-PETITION DEBT -- TRANSFERS TO OTHER DIP ACCOUNTS -- 91,052.46 PAYMENTS MADE FOR SUNRISE EDU 32,718.50 OTHER (VOIDS) -- REORGANIZATION EXPENSES: ATTORNEY FEES -- ACCOUNTANT FEES -- OTHER PROFESSIONAL FEES -- U.S. TRUSTEE QUARTERLY FEE -- COURT COSTS -- TOTAL DISBURSEMENTS -- -- -- -- 158,263.17 ------------ ------------- ------------- ------------- ------------- ACCOUNT BALANCE - END OF MONTH -- -- 418,978.03 585,000.00 2,285,619.82 ============ ============= ============= ============= ============= THE FOLLOWING SECTION MUST BE FILLED OUT DISBURSEMENTS FOR CALCULATING QUARTERLY FEES: TOTAL DISBURSEMENTS FROM ABOVE 158,263.17 LESS: TRANSFERS OUT TO OTHER DIP ACCOUNTS (91,052.46) LESS: PAYMENTS MADE FOR SUNRISE EDUCATIONAL SERVICES, INC. (32,718.50) PLUS: ESTATE DISBURSEMENTS MADE BY OUTSIDE SOURCES (i.e. PAYMENTS FROM ESCROW OR 2-PARTY CHECKS) ---------------- TOTAL DISBURSEMENTS FOR CALCULATING QUARTERLY FEES: 34,492.21 ================
2 THE TESSERACT GROUP (EXCL. SUNRISE) STATEMENT OF OPERATIONS FOR THE MONTH ENDING AUGUST 31, 2001 REVENUE Tuition and Fees Revenue $ -- Refunds/Returns -- Discounts -- ------------ Total Revenue -- ------------ OPERATIONAL COSTS Salaries and Wages -- Taxes and Benefits -- Food Programs Expense -- Maintenance Expense -- Insurance Expense -- Rent Expense -- Utilities Expense -- ------------ Total Operational Costs -- ------------ GENERAL & ADMINISTRATIVE COSTS Bank Charges/Processing Fees-A -- Corporate Overhead 16,379.20 Corporate Overhead Allocated to Sunrise (8,190.00) Other Expenses -- ------------ Total General and Administrative Expenses 8,189.20 ------------ Other Income -- Interest Expense -- ------------ Net Interest and Other Income (Expense) -- ------------ Reorganization Expenses Professional Fees 13,481.52 Professional Fees Allocated to Sunrise (6,741.00) ------------ Total Reorganization Expenses 6,740.52 ------------ Net Income $ (14,929.72) ============ 3 THE TESSERACT GROUP (EXCL. SUNRISE) BALANCE SHEET AUGUST 31, 2001 ASSETS Current Assets Cash and Cash Equivalents $ 2,074,395.24 Accounts Receivable, net 1,841.67 Note Receivable from Nobel -- Prepaid Rent 6,400.00 Other Prepaid Expenses -- -------------- Total Current Assets 2,082,636.91 Investment in Sunrise 18,971,824.26 Property and Equipment, net -- Deposits and Other Assets 1,512,992.80 -------------- Total Assets $22,567,453.97 ============== LIABILITIES AND SHAREHOLDERS' EQUITY Current Liabilities Accounts Payable $ 11,784.94 Accrued Payroll and Benefits 997,967.94 Accrued Payroll Taxes -- Deferred Revenue and Tuition Deposits 885,140.74 -------------- Total Current Liabilities 1,894,893.62 -------------- Pre-Petition Liabilities Line of Credit 5,848,822.65 Accounts Payable 3,989,847.38 Other Unsecured Notes Payable 865,500.00 Other Current Liabilities 4,539,075.42 Long-Term Debt 1,696,967.85 -------------- Total Pre-Petition Liabilities 16,940,213.30 -------------- Due to Sunrise 2,991,732.41 Reserve for Closed Schools 504,099.10 Other Long-Term Obligations 13,999.76 -------------- Total Long-Term Liabilities 3,509,831.27 -------------- Total Liabilities 22,344,938.19 -------------- Shareholders' Equity Pre-Petition Shareholders' Equity 5,334,668.03 Post Petition Retained Deficit (5,112,152.25) -------------- Total Shareholders' Equity 222,515.78 -------------- Total Liabilities and Shareholders' Equity $22,567,453.97 ============== 4 CASE NUMBER: B-00-10938-ECF-RTB STATUS OF ASSETS 0-30 31-60 60+ ACCOUNTS RECEIVABLE TOTAL DAYS DAYS DAYS ------------------- ----- ---- ---- ---- TOTAL ACCOUNTS RECEIVABLE 1,842 1,842 -- -- LESS: AMOUNT CONSIDERED UNCOLLECTIBLE -- -- ACCOUNTS RECEIVABLE (NET) 1,842 1,842 -- -- SCHEDULED CURRENT FIXED ASSETS AMOUNT ADDITIONS DELETIONS AMOUNT ------------ --------- --------- --------- ------ REAL PROPERTY 1,867,408 1,867,408 (0) BUILDING IMPROVEMENTS/PLANT 846,395 16,066 862,461 (0) ACCUMULATED DEPRECIATION (136,823) (33,112) (169,935) 0 NET BUILDINGS/PLANT 709,573 (17,047) 692,526 (0) EQUIPMENT 5,466,149 11,637 5,477,786 (0) ACCUMULATED DEPRECIATION (2,404,930) (533,426) (2,938,357) 0 NET EQUIPMENT 3,061,218 (521,789) 2,539,429 (0) AUTOS & VEHICLES 557,586 557,586 -- ACCUMULATED DEPRECIATION (259,791) (65,272) (325,063) 0 NET AUTOS & VEHICLES 297,795 (65,272) 232,523 0 NOTE: Reduction in assets due to sale of Private and Charter School assets. 5 CASE NUMBER: B-00-10938-ECF-RTB STATUS OF LIABILITIES AND SENSITIVE PAYMENTS POSTPETITION UNPAID OBLIGATIONS TOTAL 0-30 31-60 61-90 91+ ------------------ --------- --------- ----- ----- ------ ACCOUNTS PAYABLE 11,785 (2,286) -- -- 13,935 TAXES PAYABLE -- -- ACCRUED SALARIES AND BENEFITS 997,968 997,968 PREPAID TUITION AND DEPOSITS 885,141 885,141 SECURED DEBT OTHER (ATTACH LIST) --------- --------- ----- ----- ------ TOTAL POST-PETITION LIABILITIES 1,894,894 1,880,959 -- -- 13,935 ========= ========= ===== ===== ====== PAYMENTS TO INSIDERS AND PROFESSIONALS INSIDERS AMOUNT PD TOTAL PD NAME REASON FOR PAYMENT THIS MONTH TO DATE ---- ------------------ ---------- ---------- Lucian Spataro Wages and Exp. Reimbursement -- 129,134.79 Ernie Recsetar Wages -- 22,000.00 Michael Lynch Wages and Exp. Reimbursement 7,633.37 191,881.05 Gary Lilyquist Wages and Exp. Reimbursement -- 80,239.99 --------- ---------- TOTAL PAYMENTS TO INSIDERS 7,633.37 423,255.83 ========= ========== PROFESSIONALS
DATE OF COURT TOTAL ORDER AUTHORIZING AMOUNT AMOUNT TOTAL PAID INCURRED NAME PAYMENT APPROVED PAID TO DATE & UNPAID ---- ------- -------- ---- ------- -------- Bryan Cave 21,181.86 21,181.86 287,232.72 Engleman & Berger, PC 9,292.60 9,292.60 97,174.68 Field, Sarvas, King & Coleman 962.13 962.13 7,853.48 Mariscal, Weeks, McIntyre 18,619.26 18,619.26 18,619.26
6 CASE NUMBER: B-00-10938-ECF-RTB CASE STATUS QUESTIONNAIRE YES NO --- -- HAVE ANY FUNDS BEEN DISBURSED FROM ANY ACCOUNT OTHER THAN A DEBTOR IN POSSESSION ACCOUNT? NO ARE ANY POSTPETITION RECEIVABLES (ACCOUNTS, NOTES, OR LOANS) DUE FROM RELATED PARTIES? NO ARE ANY WAGE PAYMENTS PAST DUE? NO ARE ANY U.S. TRUSTEE QUARTERLY FEES DELINQUENT? NO CURRENT NUMBER OF EMPLOYEES: 1 INSURANCE CARRIER AND PERIOD EXPIRATION PAYMENT AMOUNT TYPE OF POLICY POLICY NUMBER COVERED DATE & FREQUENCY -------------- ------------- ------- ---- ----------- WHAT STEPS HAVE BEEN TAKEN TO REMEDY ANY OF THE PROBLEMS THAT BROUGHT ABOUT THE CHAPTER 11 FILING? LIST ANY MATTERS THAT ARE DELAYING THE FILING OF A PLAN OF REORGANIZATION? 7 THE TESSERACT GROUP, INC. CASH FLOW ANALYSIS B-00-10938-ECF-RTB BEGINNING FUNDS AVAILABLE: $ (240,829.42) ------------- Cash In: Credit Card Deposit (Private) -- Credit Card Deposit (Charter) -- Regular Deposits (Private) -- Regular Deposits (Charter) -- Regular Deposits (Corporate) 26,908.76 Interest 1,617.83 ------------- Daily Cash In: $ 28,526.59 ============= Cash Out: Charter A/P -- Private A/P -- Corporate A/P 65,437.00 Corporate A/P (allocated to Sunrise) (32,718.50) TesseracT Payroll -- Charter Payroll -- Medical Claims -- Banking Fees 1,773.71 LTC Payment -- Voids -- ------------- Daily Cash Out: $ 34,492.21 ============= ------------- Net Cash In/Out: $ (5,965.62) ------------- ENDING FUNDS AVAILABLE: $ (246,795.04) ============= 8 THE TESSERACT GROUP, INC. CONSOLIDATED CASH FLOW ANALYSIS TOTAL FOR OCTOBER 2001 BEGINNING FUNDS AVAILABLE: $ 2,324,303.94 ---------------- Cash In: Telecheck $ -- Credit Card Deposit (Preschools) -- Credit Card Deposit (Private) -- Credit Card Deposit (Charter) -- Regular Deposits (Preschools) -- Regular Deposits (Private) -- Regular Deposits (Charter) -- Regular Deposits (Corporate) 26,908.76 Other Deposit (Preschool) -- Interest 1,617.83 Interest on LTC Acct -- Voids -- ---------------- Daily Cash In: $ 28,526.59 ================ Cash Out: Preschool A/P $ -- Charter A/P -- Private A/P -- Corporate A/P 65,437.00 TesseracT Payroll -- Preschool Payroll -- Charter Payroll -- College PR -- Preschool NSF -- Medical Claims -- Banking Fees 1,773.71 LTC Payment -- LTC Fees -- ---------------- Daily Cash Out: $ 67,210.71 ================ Net Cash In/Out: $ (38,684.12) ---------------- ENDING FUNDS AVAILABLE: $ 2,285,619.82 ================ 9 CORPORATE COMPANY VENDOR CHECK REGISTER REPORT PAYABLES MANAGEMENT * Voided Checks
AUDIT CHECK NUMBER VENDOR ID VENDOR CHECK NAME CHECK DATE CHECKBOOK ID TRAIL CODE AMOUNT ------------ --------- ----------------- ---------- ------------ ---------- ------ 200013085 MOOBRI000-B MOORE, BRIAN 10/10/2001 OPERATING2 PMCHK00000338 $856.80 200013094 AT&T78522-B AT&T - 78225 10/16/2001 OPERATING2 PMCHK00000339 $7.79 200013095 BEM000000-B BEMISH,KAREN 10/16/2001 OPERATING2 PMCHK00000339 $180.00 200013096 CAVBRY000-B BRYAN CAVE LLP 10/16/2001 OPERATING2 PMCHK00000339 $21,181.86 200013097 ENGBER000-B ENGELMAN BERGER,P.C. 10/16/2001 OPERATING2 PMCHK00000339 $6,083.98 200013098 FIERC0000-B FIELD,SARVAS,KING,COLEMAN,PC 10/16/2001 OPERATING2 PMCHK00000339 $962.13 200013099 HORDIS000-B HORIZON DISTRIBUTION 10/16/2001 OPERATING2 PMCHK00000339 $67.91 200013100 MARWEE000-B MARISCAL,WEEKS,MCINTYRE 10/16/2001 OPERATING2 PMCHK00000339 $14,543.68 200013101 RIVJUD000-B JUDI RIVERA 10/16/2001 OPERATING2 PMCHK00000339 $290.00 200013102 IKOOFF001-B IKON OFFICE SOLUTION (AZ) 10/17/2001 OPERATING2 PMCHK00000340 $4,550.89 200013103 LYN000000-B LYNCH,MICHAEL 10/17/2001 OPERATING2 PMCHK00000340 $807.37 200013104 MARWEE000-B MARISCAL,WEEKS,MCINTYRE 10/17/2001 OPERATING2 PMCHK00000340 $2,237.79 200013106 ESCJOS000-B JOSE ESCAGEDA 10/18/2001 OPERATING2 PMCHK00000342 $50.00 200013107 ACMLOC000-B ACME LOCKSMITH CO 10/18/2001 OPERATING2 PMCHK00000343 $85.00 200013108 BEMJOH000-B JOHN BEMISH 10/19/2001 OPERATING2 PMCHK00000344 $340.00 200013109 KUTROC000-B KUTAK ROCK 10/19/2001 OPERATING2 PMCHK00000344 $113.34 200013110 RIVJUD000-B JUDI RIVERA 10/19/2001 OPERATING2 PMCHK00000344 $220.00 200013111 ENGBER000-B ENGELMAN BERGER,P.C. 10/24/2001 OPERATING2 PMCHK00000345 $3,208.62 2000131114 ADP, INC000-B ADP INC 10/26/2001 OPERATING2 PMCHK00000346 $241.05 2000131115 BEMJOH000-B JOHN BEMISH 10/26/2001 OPERATING2 PMCHK00000346 $320.00 2000131116 LYN000000-B LYNCH,MICHAEL 10/26/2001 OPERATING2 PMCHK00000346 $6,826.00 2000131117 RIVJUD000-B JUDI RIVERA 10/26/2001 OPERATING2 PMCHK00000346 $200.00 200013112 RSMMCG000-B RSM MCGLADREY 10/24/2001 OPERATING2 PMCHK00000345 $225.00 200013113 MARWEE000-B MARISCAL,WEEKS,MCINTYRE 10/24/2001 OPERATING2 PMCHK00000345 $1,837.79 REMIT000000000000115 ACAHAL000 ACADEMIC HALLMARKS 10/18/2001 PMCHK00000341 $0.00 REMIT000000000000116 ADTSEC000 ADT SECURITY - CO 10/18/2001 PMCHK00000341 $0.00 ---------- Total Checks: 26 Total Amount of Checks: $65,437.00 ==========
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