/raid1/www/Hosts/bankrupt/TCR_Public/040821.mbx
T R O U B L E D C O M P A N Y R E P O R T E R
Saturday, August 21, 2004, Vol. 8, No. 177
Headlines
AMES DEPARTMENT: April 2004 Monthly Operating Report
AMES DEPARTMENT: May 2004 Monthly Operating Report
AMES DEPARTMENT: June 2004 Monthly Operating Report
AVALON DIGITAL: Reports $10,853 Net Loss in July 2004
DII/KBR: Reports Combined Second Quarter 2004 Financial Report
DII/KBR: DII's Net Loss Climbs to $614.8 Million in June 2004
DII/KBR: Mid-Valley's June 2004 Monthly Operating Report
DII/KBR: Kellogg Brown & Root's June 2004 Monthly Operating Report
DII/KBR: KBR Engineering's June 2004 Monthly Operating Report
DII/KBR: KBR Technical's June 2004 Monthly Operating Report
DII/KBR: KBR Int'l. Posts $4.2 Million Net Income for June 2004
DII/KBR: KBR (Panama)'s June 2004 Monthly Operating Report
DII/KBR: BPM Minerals' June 2004 Net Income Tops $983,000
FINOVA GROUP: Reports $32 Million Net Loss for 2nd Quarter 2004
FINOVA GROUP: Files Consolidated 2nd Quarter Financial Report
FINOVA CAPITAL: Reports $1.1 Million 2nd Quarter 2004 Net Income
FINOVA CAPITAL plc: 2004 Half-Year Net Income Tops $86 Million
FINOVA: Loan Administration's Second Quarter 2004 Results
FINOVA: Mezzanine Reports $9.9 Million Net Income in June 2004
FOOTSTAR INC: Reports $13.8 Million Net Loss in July 2004
FORTUNE NATURAL: Reports $71,452 Net Loss for June 2004
KEYSTONE CONSOLIDATED: July 2004 Net Income Tops $7.2 Million
KMART: Reports $155 Million Second Quarter 2004 Net Income
PEGASUS SATELLITE: Reports $470 Million Net Loss in June 2004
PG&E NATIONAL: USGen New England's May Monthly Operating Report
PG&E NATIONAL: USGen New England's June Monthly Operating Report
PILLOWTEX CORP: Releases June 2004 Monthly Operating Report
RCN CORP: Files Amended First Quarter 2004 Financial Results
RCN CORP: Reports $4.4 Million Net Loss in June 2004
ROUGE INDUSTRIES: Files June 2004 Monthly Operating Report
TWINLAB CORPORATION: Files July 2004 Monthly Operating Report
WORLD ACCESS: Releases June 2004 Monthly Operating Reports
*********
AMES DEPARTMENT: April 2004 Monthly Operating Report
----------------------------------------------------
Ames Department Stores, Inc., and Subsidiaries
Unaudited Consolidated Condensed Balance Sheets
At May 1, 2004
(In Thousands)
ASSETS
Current Assets:
Cash and cash equivalents $3,718
Restricted cash 59,781
Receivables 1,718
----------
Total current assets 65,217
----------
Fixed Assets -
----------
Total assets $65,217
==========
LIABILITIES AND STOCKHOLDERS' EQUITY
Current Liabilities:
Accounts payable:
Trade $64,209
Other 14,973
----------
Total accounts payable 79,182
Self-insurance reserves 23,722
Accrued expenses 26,977
Liabilities subject to compromise 854,379
----------
Total liabilities 984,260
Stockholders' equity (deficit)
Common stock 295
Additional paid-in capital 533,393
Accumulated deficit (1,451,809)
Treasury stock (922)
----------
Total stockholders' deficit (919,043)
----------
Total liabilities and stockholders' deficit $65,217
==========
Ames Department Stores, Inc., and Subsidiaries
Unaudited Consolidated Condensed Statements of Operations
For Four Weeks Ended May 1, 2004
(In Thousands)
Total revenue $323
Costs and expenses
Wind down expenses and other costs 572
Gain on sale of fixed assets (750)
Lease rejection costs
Professional fees 250
----------
Income before income taxes 251
----------
Net Income $251
==========
Ames Department Stores, Inc., and Subsidiaries
Unaudited Consolidated Condensed Statements of Cash Flows
For Four Weeks Ended May 1, 2004
(In Thousands)
Cash flows from operating activities:
Net gain $251
Expenses not requiring the outlay of cash:
Gain on sale of fixed assets (750)
----------
Cash used by operations (499)
Changes in working capital:
Increase in receivables (312)
Decrease in accounts payable (920)
Decrease in accrued expenses & other liabilities (1,073)
Increase in restricted cash 205
----------
Net cash provided by operating activities (2,599)
Cash flows from financing activities:
Proceeds from the sale of fixed assets 750
Borrowings under DIP Credit Agreement -
Change in liabilities subject to compromise 342
----------
Net cash provided by financing activities 1,092
Decrease in cash and cash equivalents (1,507)
Cash and cash equivalents, beginning of period 5,225
----------
Cash and cash equivalents, end of period $3,718
==========
AMES DEPARTMENT: May 2004 Monthly Operating Report
--------------------------------------------------
Ames Department Stores, Inc., and Subsidiaries
Unaudited Consolidated Condensed Balance Sheets
At May 29, 2004
(In Thousands)
ASSETS
Current Assets:
Cash and cash equivalents $2,439
Restricted cash 59,157
Receivables 1,873
----------
Total current assets 63,469
----------
Fixed assets -
----------
Total assets $63,469
==========
LIABILITIES AND STOCKHOLDERS' EQUITY
Current Liabilities:
Accounts payable:
Trade $63,906
Other 14,951
----------
Total accounts payable 78,857
Self-insurance reserves 23,226
Accrued expenses 26,032
Liabilities subject to compromise 852,370
----------
Total liabilities 980,485
Stockholders' equity (deficit)
Common stock 295
Additional paid-in capital 533,393
Accumulated deficit (1,449,782)
Treasury stock (922)
----------
Total stockholders' deficit (917,016)
----------
Total liabilities and stockholders' deficit $63,469
==========
Ames Department Stores, Inc., and Subsidiaries
Unaudited Consolidated Condensed Statements of Operations
For Four Weeks Ended May 29, 2004
(In Thousands)
Total revenue $2,796
Costs and expenses
Wind down expenses and other costs 569
Gain on sale of fixed assets
Lease rejection costs
Professional fees 200
----------
Income before income taxes 2,027
----------
Net Income $2,027
==========
Ames Department Stores, Inc., and Subsidiaries
Unaudited Consolidated Condensed Statements of Cash Flows
For Four Weeks Ended May 29, 2004
(In Thousands)
Cash flows from operating activities:
Net loss $2,027
Expenses not requiring the outlay of cash:
Gain on sale of fixed assets 0
----------
Cash used by operations 2,027
Changes in working capital:
Increase in receivables (155)
Decrease in accounts payable (325)
Decrease in accrued expenses & other liabilities (1,441)
Increase in restricted cash 624
----------
Net cash provided by operating activities 730
Cash flows from financing activities:
Proceeds from the sale of fixed assets -
Borrowings under DIP Credit Agreement -
Change in liabilities subject to compromise (2,009)
----------
Net cash provided by financing activities (2,009)
Decrease in cash and cash equivalents (1,279)
Cash and cash equivalents, beginning of period 3,718
----------
Cash and cash equivalents, end of period $2,439
==========
AMES DEPARTMENT: June 2004 Monthly Operating Report
---------------------------------------------------
Ames Department Stores, Inc., and Subsidiaries
Unaudited Consolidated Condensed Balance Sheets
At July 3, 2004
(In Thousands)
ASSETS
Current Assets:
Cash and cash equivalents $2,281
Restricted cash 59,158
Receivables 1,304
----------
Total current assets 62,743
----------
Fixed assets -
----------
Total assets $62,743
==========
LIABILITIES AND STOCKHOLDERS' EQUITY
Current Liabilities:
Accounts payable:
Trade $63,282
Other 14,306
----------
Total accounts payable 77,588
Self-insurance reserves 22,499
Accrued expenses 26,130
Liabilities subject to compromise 851,252
----------
Total liabilities 977,469
Stockholders' equity (deficit)
Common stock 295
Additional paid-in capital 533,393
Accumulated deficit (1,447,492)
Treasury stock (922)
----------
Total stockholders' deficit (914,726)
----------
Total liabilities and stockholders' deficit $62,743
==========
Ames Department Stores, Inc., and Subsidiaries
Unaudited Consolidated Condensed Statements of Operations
For Five Weeks Ended July 3, 2004
(In Thousands)
Total revenue $3,280
Costs and expenses
Wind down expenses and other costs 815
Gain on sale of fixed assets -
Lease rejection costs -
Professional fees 175
----------
Income before income taxes 2,290
----------
Net Income $2,290
==========
Ames Department Stores, Inc., and Subsidiaries
Unaudited Consolidated Condensed Statements of Cash Flows
For Five Weeks Ended July 3, 2004
(In Thousands)
Cash flows from operating activities:
Net income $2,290
Expenses not requiring the outlay of cash:
Gain on sale of fixed assets -
----------
Cash used by operations 2,290
Changes in working capital:
Decrease in receivables 569
Decrease in accounts payable (1,269)
Decrease in accrued expenses & other liabilities -
Increase in restricted cash (1)
----------
Net cash provided by operating activities 960
Cash flows from financing activities:
Proceeds from the sale of fixed assets -
Borrowings under DIP Credit Agreement -
Change in liabilities subject to compromise (1,118)
----------
Net cash provided by financing activities (1,118)
Decrease in cash and cash equivalents (158)
Cash and cash equivalents, beginning of period 2,439
----------
Cash and cash equivalents, end of period $2,281
==========
AVALON DIGITAL: Reports $10,853 Net Loss in July 2004
-----------------------------------------------------
Avalon Digital Marketing Systems, Inc., a Delaware corporation,
filed its monthly operating report for the period from July 1,
2004 to July 31, 2004.
For July 2004, Avalon Digital reported a $10,853 net loss in
$147,559 of gross profit.
At July 31, 2004, Avalon Digital's balance sheet showed:
Current Assets $ 127,096
Total Assets 399,650
Post-petition Liabilities 657,318
Pre-petition Liabilities 9,397,119
Total Owners' Equity $(9,654,787)
On September 5, 2003, Avalon Digital Marketing Systems, Inc., a
Delaware corporation filed a voluntary petition for reorganization
under Chapter 11 of the United States Bankruptcy Code in the U.S.
Bankruptcy Court in Salt Lake City, Utah. The case has been
assigned to Judge Glen E. Clark and the case is being administered
under Case Number 03-35180.
A full-text copy of Avalon Digital Marketing Systems, Inc.'s July
2004 Monthly Operating Report is available at no charge at:
http://www.sec.gov/Archives/edgar/data/1095792/000009631304000195/avalondigitalexh991704.txt
DII/KBR: Reports Combined Second Quarter 2004 Financial Report
--------------------------------------------------------------
Debtors-in-Possession
Unaudited Condensed Combined Balance Sheets
As of June 30, 2004
(dollars in millions)
Assets
Current assets:
Cash and equivalents $152
Receivables:
Trade, net 146
Unbilled insurance for asbestos &
silica-related liabilities 889
Intercompany, net -
Unbilled work on uncompleted contracts 141
Other, net 89
-----------
Total receivables, net 1,265
Inventories 23
Right to Halliburton shares 1,547
Restricted cash - prepetition liability payments 149
Other current assets 177
-----------
Total current assets 3,313
Property, plant, and equipment, net 92
Goodwill, net 188
Investments in majority-owned subsidiaries 1,530
Insurance for asbestos & silica-related liabilities 468
Non-current deferred income taxes 558
Other assets 106
-----------
Total assets $6,255
===========
Liabilities and Shareholders' Equity
Current liabilities:
Accounts payable:
Trade $127
Intercompany, net 254
Accrued employee compensation and benefits 18
Advance billings on uncompleted contracts 77
Prepetition liabilities not subject to compromise 520
Current prepetition asbestos &
silica-related liabilities subject to compromise 2,399
Other current liabilities -
-----------
Total current liabilities 3,395
Prepetition liabilities not subject to compromise 126
Non-current prepetition asbestos &
silica-related liabilities subject to compromise 1,754
Other liabilities 20
-----------
Total liabilities 5,295
-----------
Shareholders' equity 960
-----------
Total liabilities and shareholders' equity $6,255
===========
Debtors-in-Possession
Unaudited Condensed Combined Statement of Operations
Three Months Ended June 30, 2004
(dollars in millions)
Revenues $473
Equity in earnings (losses) of
majority-owned subsidiaries (1)
-----------
Total revenues 472
Operating costs and expenses 679
-----------
Operating loss (207)
Non-operating income 11
-----------
Loss from continuing operations
before income taxes (196)
Income tax benefit 76
-----------
Loss from continuing operations (120)
Loss from discontinued operations,
net of tax benefit of $87 and $146 (609)
-----------
Net loss ($729)
===========
Debtors-in-Possession
Unaudited Condensed Combined Statement of Cash Flows
Six Months Ended June 30, 2004
(dollars in millions)
Total cash flows from operating activities ($165)
-----------
Total cash flows from investing activities (6)
-----------
Total cash flows from activities with Halliburton 212
-----------
Effect of exchange rate changes on cash 3
Increase in cash and equivalents 44
Cash and equivalents at beginning of period 108
-----------
Cash and equivalents at end of period $152
===========
A full-text copy of the Debtors' Second Quarter 2004 Report is
available at:
http://www.sec.gov/Archives/edgar/data/45012/000004501204000228/edjune10q2004_final.htm
DII/KBR: DII's Net Loss Climbs to $614.8 Million in June 2004
-------------------------------------------------------------
DII Industries, LLC
Unaudited Balance Sheet
As of June 30, 2004
(in thousands)
Assets
Current Assets:
Cash and equivalents $91,703
Escrow - prepetition payments 149,349
Investment account with Parent 78,000
Trade receivables -
Unbilled work on incomplete contracts -
Other receivables 12
Inventories -
Right to Halliburton Shares 1,811,061
Insurance for asbestos & silica-related PI claims 889,072
Other current assets 312,890
----------
Total current assets 3,332,087
Net property, plant and equipment -
Investments in consolidated subsidiaries 2,035,844
Equity in related companies -
Intercompany with related companies (794,093)
Goodwill, net -
Non-current deferred income taxes 349,000
Insurance for asbestos & silica-related PI claims 468,449
Other assets 11
----------
Total assets $5,391,298
==========
Liabilities and Shareholder's Equity
Current Liabilities:
Short-term notes payable -
DIP Financing -
Current maturities of long-term debt -
Accounts payable $6,869
Accrued employee compensation and benefits 2
Accrued interest payable 7,558
Advanced billings on uncompleted contracts -
Asbestos and silica-related PI claims 2,402,028
Other current liabilities 11,000
----------
Total current liabilities 2,427,457
Long-term debt -
Employee compensation and benefits -
Asbestos and silica-related PI claims 1,817,711
Minority interest in consolidated subsidiaries -
Other liabilities 5,235
----------
Total liabilities 4,250,403
Total shareholder's equity 1,140,895
----------
Total liabilities and shareholder's equity $5,391,298
==========
DII Industries, LLC
Unaudited Income Statement
Month ended June 30, 2004
(in thousands)
Revenues -
Operating costs and expenses $732
----------
Operating income/(loss) (732)
Interest expense -
Interest income 5,142
Foreign currency gains (losses) 8
Other non-operating income - net -
Equity in earnings/(loss) of subsidiaries (105,570)
----------
Income/(loss) before taxes & minority interest (101,152)
Income tax benefit/(provision) (1,600)
----------
Income/(loss) from continuing operations (102,752)
----------
Income/(loss) from discontinued operations (512,131)
----------
Net Income/(loss) ($614,883)
==========
DII/KBR: Mid-Valley's June 2004 Monthly Operating Report
--------------------------------------------------------
Mid-Valley, Inc.
Unaudited Balance Sheet
As of June 30, 2004
(in thousands)
Assets
Current Assets:
Cash and equivalents -
Escrow - prepetition payments -
Trade receivables -
Unbilled work on uncompleted contracts -
Other receivables -
Inventories -
Other current assets -
----------
Total current assets -
Net property, plant and equipment -
Investments in consolidated subsidiaries -
Equity in related companies -
Intercompany with related companies -
Intercompany with Parent $40,970
Goodwill, net -
Non-current deferred income taxes -
Insurance for asbestos and silica-related PI claims -
Right to Halliburton shares -
Other assets -
----------
Total assets $40,970
==========
Liabilities and Shareholder's Equity
Current Liabilities:
Short-term notes payable -
Current maturities of long-term debt -
Accounts payable $4
Accrued employee compensation and benefits 23
Accrued interest payable -
Advanced billings on uncompleted contracts 532
Asbestos and silica-related PI claims -
Other current liabilities 2,083
----------
Total current liabilities 2,642
Long-term debt -
Employee compensation and benefits -
Asbestos and silica-related PI claims -
Minority interest in consolidated subsidiaries -
Other liabilities -
----------
Total liabilities 2,642
Total shareholder's equity 38,328
----------
Total liabilities and shareholder's equity $40,970
==========
Mid-Valley, Inc., reports no income for June 2004.
DII/KBR: Kellogg Brown & Root's June 2004 Monthly Operating Report
------------------------------------------------------------------
Kellogg Brown & Root, Inc.
Unaudited Balance Sheet
As of June 30, 2004
(in thousands)
Assets
Current Assets:
Cash and equivalents ($13,343)
Escrow - prepetition payments -
Trade receivables 112,271
Unbilled work on uncompleted contracts 120,579
Other receivables 68,955
Inventories 16,780
Other current assets 24,641
----------
Total current assets 329,883
Net property, plant and equipment 56,730
Investments in consolidated subsidiaries 248,679
Equity in related companies 15,035
Intercompany with related companies 175,955
Intercompany with Parent 384,892
Goodwill, net 171,213
Non-current deferred income taxes 209,000
Insurance for asbestos & silica-related PI claims -
Right to Halliburton shares -
Other assets 87,330
----------
Total assets $1,678,717
==========
Liabilities and Shareholder's Equity
Current Liabilities:
Short-term notes payable -
Current maturities of long-term debt -
Accounts payable $98,007
Accrued employee compensation and benefits 61,490
Accrued interest payable -
Advanced billings on uncompleted contracts 231,899
Asbestos and silica-related PI claims 74,337
Other current liabilities 415,299
----------
Total current liabilities 881,032
Long-term debt -
Employee compensation and benefits 49,934
Asbestos and silica-related PI claims -
Minority interest in consolidated subsidiaries -
Other liabilities 84,405
----------
Total liabilities 1,015,371
Total shareholder's equity 663,346
----------
Total liabilities and shareholder's equity $1,678,717
==========
Kellogg Brown & Root, Inc.
Unaudited Income Statement
Month ended June 30, 2004
(in thousands)
Revenues $120,961
Operating costs and expenses 372,120
----------
Operating income (251,159)
Interest expense (2,985)
Interest income 194
Foreign currency gains (losses) (403)
Other non-operating income - net -
----------
Income before taxes and minority interest (254,353)
Income tax benefit/(provision) 93,777
----------
Income from continuing operations (160,576)
----------
Net Income ($160,576)
==========
DII/KBR: KBR Engineering's June 2004 Monthly Operating Report
-------------------------------------------------------------
KBR Engineering Corp.
Unaudited Balance Sheet
As of June 30, 2004
(in thousands)
Assets
Current Assets:
Cash and equivalents -
Escrow - prepetition payments -
Trade receivables -
Unbilled work on uncompleted contracts -
Other receivables -
Inventories -
Other current assets -
----------
Total current assets -
Net property, plant and equipment -
Investments in consolidated subsidiaries -
Equity in related companies -
Intercompany with related companies $77
Intercompany with Parent -
Goodwill, net -
Non-current deferred income taxes -
Insurance for asbestos and silica-related PI claims -
Right to Halliburton shares -
Other assets -
----------
Total assets $77
==========
Liabilities and Shareholder's Equity
Current Liabilities:
Short-term notes payable -
Current maturities of long-term debt -
Accounts payable -
Accrued employee compensation and benefits -
Accrued interest payable -
Advanced billings on uncompleted contracts -
Asbestos and silica-related PI claims -
Other current liabilities -
----------
Total current liabilities -
Long-term debt -
Employee compensation and benefits -
Asbestos and silica-related PI claims -
Minority interest in consolidated subsidiaries -
Other liabilities -
----------
Total liabilities -
Total shareholder's equity $77
----------
Total liabilities and shareholder's equity $77
==========
KBR Engineering Corp. reports no income for June 2004.
DII/KBR: KBR Technical's June 2004 Monthly Operating Report
-----------------------------------------------------------
KBR Technical Services, Inc.
Unaudited Balance Sheet
As of June 30, 2004
(in thousands)
Assets
Current Assets:
Cash and equivalents $302
Escrow - prepetition payments -
Trade receivables -
Unbilled work on uncompleted contracts -
Other receivables 505
Inventories -
Other current assets 876
----------
Total current assets 1,683
Net property, plant and equipment 26,338
Investments in consolidated subsidiaries 1,555
Equity in related companies -
Intercompany with related companies 9,549
Intercompany with Parent -
Goodwill, net -
Non-current deferred income taxes -
Insurance for asbestos and silica-related PI claims -
Right to Halliburton shares -
Other assets -
----------
Total assets $39,125
==========
Liabilities and Shareholder's Equity
Current Liabilities:
Short-term notes payable -
Current maturities of long-term debt -
Accounts payable $377
Accrued employee compensation and benefits 20,417
Accrued interest payable -
Advanced billings on uncompleted contracts -
Asbestos and silica-related PI claims -
Other current liabilities 366
----------
Total current liabilities 21,160
Long-term debt -
Employee compensation and benefits 3,710
Asbestos and silica-related PI claims -
Minority interest in consolidated subsidiaries -
Other liabilities -
----------
Total liabilities 24,870
Total shareholder's equity 14,255
----------
Total liabilities and shareholder's equity $39,125
==========
KBR Technical Services, Inc.
Unaudited Income Statement
Month ended June 30, 2004
(in thousands)
Revenues -
Operating costs and expenses $743
----------
Operating income/(loss) (743)
Interest expense (141)
Interest income -
Foreign currency gains (losses) 2
Other non-operating income - net -
----------
Income/(loss) before taxes & minority interest (882)
Income tax benefit -
----------
Net Income/(loss) ($882)
==========
DII/KBR: KBR Int'l. Posts $4.2 Million Net Income for June 2004
---------------------------------------------------------------
KBR International, Inc.
Unaudited Balance Sheet
As of June 30, 2004
(in thousands)
Assets
Current Assets:
Cash and equivalents $40,420
Escrow - prepetition payments -
Trade receivables 24,669
Unbilled work on uncompleted contracts 17,704
Other receivables 18,930
Inventories -
Other current assets 1,807
----------
Total current assets 103,530
Net property, plant and equipment 359
Investments in consolidated subsidiaries 28,146
Equity in related companies 2,078
Intercompany with related companies -
Intercompany with Parent (43,218)
Goodwill, net -
Non-current deferred income taxes -
Insurance for asbestos and silica-related PI claims -
Right to Halliburton shares -
Other assets 489
----------
Total assets $91,384
==========
Liabilities and Shareholder's Equity
Current Liabilities:
Short-term notes payable -
Current maturities of long-term debt -
Accounts payable $18,296
Accrued employee compensation and benefits 359
Accrued interest payable 2
Advanced billings on uncompleted contracts 15,494
Asbestos and silica-related PI claims -
Other current liabilities 11,322
----------
Total current liabilities 45,473
Long-term debt -
Employee compensation and benefits 564
Asbestos and silica-related PI claims -
Minority interest in consolidated subsidiaries -
Other liabilities 135
----------
Total liabilities 46,172
Total shareholder's equity 45,212
----------
Total liabilities and shareholder's equity $91,384
==========
KBR International, Inc.
Unaudited Income Statement
Month ended June 30, 2004
(in thousands)
Revenues ($793)
Operating costs and expenses (1,972)
----------
Operating income/(loss) 1,179
Interest expense -
Interest income 3,519
Foreign currency gains (losses) 37
Other non-operating income - net -
----------
Income/(loss) before taxes & minority interest 4,735
Income tax benefit/(provision) (510)
----------
Net Income/(loss) $4,225
==========
DII/KBR: KBR (Panama)'s June 2004 Monthly Operating Report
----------------------------------------------------------
KBR International, Inc. (Panama)
Unaudited Balance Sheet
As of June 30, 2004
(in thousands)
Assets
Current Assets:
Cash and equivalents $32,856
Escrow - prepetition payments -
Trade receivables 2,777
Unbilled work on uncompleted contracts 2,634
Other receivables 440
Inventories -
Other current assets 418
----------
Total current assets 39,125
Net property, plant and equipment 27
Investments in consolidated subsidiaries 23,865
Equity in related companies -
Intercompany with related companies -
Intercompany with Parent (28,444)
Goodwill, net -
Non-current deferred income taxes -
Insurance for asbestos and silica-related PI claims -
Right to Halliburton shares -
Other assets 16
----------
Total assets $34,589
==========
Liabilities and Shareholder's Equity
Current Liabilities:
Short-term notes payable $462
Current maturities of long-term debt -
Accounts payable 2,729
Accrued employee compensation and benefits 3,335
Accrued interest payable -
Advanced billings on uncompleted contracts 86
Asbestos and silica-related PI claims -
Other current liabilities 1,327
----------
Total current liabilities 7,939
Long-term debt -
Employee compensation and benefits 643
Asbestos and silica-related PI claims -
Minority interest in consolidated subsidiaries -
Other liabilities -
----------
Total liabilities 8,582
Total shareholder's equity 26,007
----------
Total liabilities and shareholder's equity $34,589
==========
KBR International, Inc. (Panama)
Unaudited Income Statement
Month ended June 30, 2004
(in thousands)
Revenues $2,529
Operating costs and expenses 1,491
----------
Operating income/(loss) 1,038
Interest expense (22)
Interest income 25
Foreign currency gains (losses) (67)
Other non-operating income - net -
----------
Income/(loss) before taxes & minority interest 974
Provision for income tax -
----------
Net Income/(loss) $974
==========
DII/KBR: BPM Minerals' June 2004 Net Income Tops $983,000
---------------------------------------------------------
BPM Minerals, LLC
Unaudited Balance Sheet
As of June 30, 2004
(in thousands)
Assets
Current Assets:
Cash and equivalents ($175)
Escrow - prepetition payments -
Trade receivables 6,771
Unbilled work on uncompleted contracts -
Other receivables 266
Inventories 5,893
Other current assets -
----------
Total current assets 12,755
Net property, plant and equipment 8,893
Investments in consolidated subsidiaries -
Equity in related companies -
Intercompany with related companies 45,621
Intercompany with Parent -
Goodwill, net -
Non-current deferred income taxes -
Insurance for asbestos and silica-related PI claims -
Right to Halliburton shares -
Other assets -
----------
Total assets $67,270
==========
Liabilities and Shareholder's Equity
Current Liabilities:
Short-term notes payable -
Current maturities of long-term debt -
Accounts payable $693
Accrued employee compensation and benefits -
Accrued interest payable -
Advanced billings on uncompleted contracts -
Asbestos and silica-related PI claims -
Other current liabilities 78
----------
Total current liabilities 771
Long-term debt -
Employee compensation and benefits 611
Asbestos and silica-related PI claims 42,000
Minority interest in consolidated subsidiaries -
Other liabilities -
----------
Total liabilities 43,381
Total shareholder's equity 23,889
----------
Total liabilities and shareholder's equity $67,270
==========
BPM Minerals, LLC
Unaudited Income Statement
Month ended June 30, 2004
(in thousands)
Revenues $5,081
Operating costs and expenses 4,099
----------
Operating income 983
Interest expense -
Interest income -
Foreign currency gains (losses) -
Other non-operating income - net -
----------
Income before taxes and minority interest 983
Provision for income tax -
----------
Net Income $983
==========
FINOVA GROUP: Reports $32 Million Net Loss for 2nd Quarter 2004
---------------------------------------------------------------
The FINOVA Group, Inc.
Unaudited Condensed Balance Sheet
As of June 30, 2004
(In Thousands)
Assets
Current Assets:
Cash and cash equivalents $0
Financing Assets:
Loans and other financing contracts, net -
Direct Financing leases -
Leverage leases -
---------
Total financing assets -
Reserve for credit losses -
---------
Net Financing assets -
Other Financial Assets:
Operating leases -
Assets held for sale -
Assets held for the production income -
Investments 22,991
Net assets of discontinued operations -
---------
Total other financial assets 22,991
---------
Total Financial Assets 22,991
Other assets 11,307
Due from subsidiaries 311,521
Investment in subsidiaries (793,242)
Intercompany note 2,730,449
---------
Total Assets $2,283,026
=========
Liabilities and Stockholders' Equity
Liabilities:
Berkadia loan -
Intercompany note -
Senior Notes, net - Reorganized Company $2,123,749
Senior debt - Predecessor Company -
---------
Total debt 2,123,749
Accounts payable and accrued expenses 26,960
Deferred income taxes, net -
---------
Total Liabilities 2,150,709
Stockholders' Equity:
Common Stock 1,259
Additional capital 108,256
Accumulated earnings 23,338
Common stock in treasury (536)
---------
Total Stockholders' Equity 132,317
---------
Total Liabilities and Stockholders' Equity $2,283,026
=========
The FINOVA Group, Inc.
Unaudited Condensed Statements of Operations
Six Months Ended June 30, 2004
(In Thousands)
Revenues:
Interest, fees and other income $68
Intercompany interest income 108,330
Rental income -
Operating leases income -
---------
Total Revenues 108,398
Interest expense (132,272)
Intercompany interest expense -
Operating lease and other depreciation -
---------
Interest Margin (23,874)
Other Revenues and (Expenses):
Reversal of provision for credit losses -
Net (loss) gain on financial assets -
Operating expenses (8,165)
Gain from extinguishments of debt, net -
Net reorganization expense -
---------
Total Other Revenues and (Expenses) (8,165)
---------
Loss from continuing operations before income taxes (32,039)
Income tax expense -
---------
Loss from continuing operations (32,039)
Discontinued operations, net of tax -
Net loss on disposal of operations, net of tax -
---------
Net Loss ($32,039)
=========
FINOVA GROUP: Files Consolidated 2nd Quarter Financial Report
-------------------------------------------------------------
The FINOVA Group, Inc.
Unaudited Condensed Consolidated Balance Sheet
As of June 30, 2004
(In Thousands)
Assets
Current Assets:
Cash and cash equivalents $642,279
Restricted cash - impermissible restricted payments 12,500
Financing Assets:
Loans and other financing contracts, net 646,917
Direct Financing leases 173,767
---------
Total financing assets 820,684
Reserve for credit losses (173,832)
---------
Net Financing assets 646,852
Other Financial Assets:
Operating leases 71,852
Assets held for sale 164,746
Assets held for the production income 42,404
Investments 32,111
---------
Total other financial assets 311,113
---------
Total Financial Assets 957,965
Other assets 19,754
---------
Total Assets $1,632,498
=========
Liabilities and Stockholders' Equity
Liabilities:
Berkadia loan -
Senior Notes, net $2,123,749
Senior debt - Predecessor Company -
---------
Total debt 2,123,749
Accounts payable and accrued expenses 97,555
Deferred income taxes, net 3,931
---------
Total Liabilities 2,225,235
Stockholders' Equity:
Common Stock 1,259
Additional capital 108,256
Accumulated deficit (703,651)
Accumulated other comprehensive income 1,935
Common stock in treasury (536)
---------
Total Stockholders' Equity (592,737)
---------
Total Liabilities and Stockholders' Equity $1,632,498
=========
The FINOVA Group, Inc.
Unaudited Condensed Statements of Consolidated Operations
Three Months Ended June 30, 2004
(In Thousands)
Revenues:
Interest income $33,934
Rental income 9,346
Operating leases income 14,331
Fees and other income 7,283
---------
Total Revenues 64,894
Interest expense (67,638)
Operating lease and other depreciation (4,239)
---------
Interest Margin (6,983)
Other Revenues and (Expenses):
Reversal of provision for credit losses 19,673
Net gain on financial assets 19,852
Portfolio expenses (4,424)
General & Administrative expenses (13,128)
---------
Total Other Revenues and (Expenses) 21,973
Income from continuing operations before
Income taxes and preferred dividends 14,990
Income tax expense -
---------
Net Income $14,990
=========
The FINOVA Group Inc.
Unaudited Condensed Statements of Consolidated Cash Flows
Six Months Ended June 30, 2004
(In Thousands)
Operating Activities:
Net Income $61,064
Adjustment to reconcile net income to net
cash provided by operating activities:
Reversal of provision for credit losses (70,363)
Net cash gain on disposal of financial assets (40,131)
Net non-cash charge off of financial assets 7,451
Depreciation and amortization 10,130
Deferred income taxes, net (119)
Other amortization 4,335
Change in assets and liabilities:
Decrease in other assets 2,378
Decrease in accounts payable and accrued expenses (26,970)
---------
Net Cash Used by Operating Activities (52,225)
Investing Activities:
Proceeds from disposals of leases and other assets 35,604
Proceeds from sales of investments 9,193
Collections from financial assets 133,270
Fundings under existing customer commitments (43,002)
Recoveries of loans previously written-off 21,776
Deposits of impermissible restricted payments
into restricted cash account (12,500)
---------
Net Cash Provided by Investing Activities 667,866
Financing Activities:
Repayments of Berkadia Loan (525,000)
Repayments of Senior Notes (237,500)
---------
Net Cash Used by Financing Activities (762,500)
Decrease in Cash and Cash Equivalents (146,859)
Cash and Cash Equivalents, beginning of period 789,138
---------
Cash and Cash Equivalents, end of period $642,279
=========
A full-text copy of The FINOVA Group's Form 10-Q Report ending
June 30, 2004, is available for free at the Securities and
Exchange Commission at:
http://www.sec.gov/Archives/edgar/data/883701/000119312504139020/d10q.htm
FINOVA CAPITAL: Reports $1.1 Million 2nd Quarter 2004 Net Income
----------------------------------------------------------------
FINOVA Capital Corporation
Unaudited Consolidated Balance Sheet
As of June 30, 2004
(In Thousands)
Current Assets:
Cash and cash equivalents $617,529
Restricted cash 12,500
Financing Assets:
Loans and other financing contracts, net 599,654
Direct Financing Leases 122,339
Leveraged leases -
---------
Total financing assets 721,993
Reserve for credit losses (148,465)
---------
Net Financing assets 573,528
Other Financial assets:
Operating Leases 61,643
Assets held for sale 138,242
Assets held for the production of income 36,565
Investments 6,227
Net assets of discontinued operations -
---------
Total other financial assets 242,677
---------
Total Financial Assets 816,205
Other Assets 7,944
Due from subsidiaries -
Investment in subsidiaries 1,914
Intercompany loans 180,437
---------
Total Assets $1,636,529
=========
Liabilities and Stockholders' Equity
Liabilities:
Berkadia Loan -
Intercompany note $2,808,164
Senior Notes, net -- Reorganized Company -
Senior debt - Predecessor Company -
---------
Total debt 2,808,164
Accounts payable and accrued expenses 46,382
Deferred income taxes, net 3,931
---------
Total liabilities 2,858,477
Stockholders' equity:
Common Stock 25
Additional capital (793,267)
Accumulated deficit (742,897)
Accumulated other comprehensive (loss) income 2,670
Related party transactions 311,521
---------
Total Stockholders' equity (1,221,948)
---------
Total Liabilities and Stockholders' Equity $1,636,529
=========
FINOVA Capital Corporation
Unaudited Condensed Statements of Operations
Six Months Ended June 30, 2004
(In Thousands)
Revenues:
Interest, fees and other income $82,982
Intercompany interest income -
Rental income 7,510
Operating lease income 25,155
---------
Total revenues 115,647
Interest Expense (1,518)
Intercompany interest expense (110,738)
Operating lease and other depreciation (7,111)
---------
Interest Margin (3,720)
Other Revenues and (Expenses):
Reversal of provision for credit losses 12,134
Net gain on financial assets 20,513
Operating expenses (27,771)
Gain from extinguishments of debt, net -
Net reorganization expense -
---------
Total other Revenues and (expenses) 4,876
---------
(Loss) income from operations before income taxes 1,156
Income tax expense -
---------
(Loss) income from continuing operations 1,156
Discontinued operations, net of tax -
Net loss on disposal of operations, net of tax -
---------
Net (Loss) income $1,156
=========
FINOVA CAPITAL plc: 2004 Half-Year Net Income Tops $86 Million
--------------------------------------------------------------
FINOVA Capital plc
Unaudited Consolidated Balance Sheet
As of June 30, 2004
(In Thousands)
Assets:
Cash and cash equivalents $24,748
Financing Assets:
Loans and other financing contracts, net 33,096
Direct financing leases 50,903
Leverage leases -
---------
Total financing assets 83,999
Reserve for credit losses (25,242)
---------
Net financing assets (58,757)
Other Financial Assets:
Assets held for sale -
Operating leases 2,772
Assets held for the production of income 5,759
Investments -
Net assets of discontinued operations -
---------
Total other financial assets 8,531
---------
Total Financial Assets 57,288
Other assets 503
Intercompany loans -
Investment in subsidiaries -
Due from subsidiaries -
---------
Total Assets $92,539
=========
Liabilities and Stockholders' Equity
Liabilities:
Berkadia Loan -
Intercompany note $178,000
Senior Notes, net - Reorganized Company -
Senior debt - Predecessor Company -
---------
Total debt 178,000
Accounts payable and accrued expenses 21,770
Deferred income taxes, net -
---------
Total Liabilities 199,770
Stockholders' Equity:
Common Stock -
Additional capital (18,383)
Accumulated earnings (deficit) (88,711)
Accumulated other comprehensive income (loss) (137)
Related party transactions -
---------
Total Stockholders' Equity (107,231)
---------
Total Liabilities and Stockholders' Equity $92,539
=========
FINOVA Capital plc
Unaudited Condensed Statements of Operations
Six Months Ended June 30, 2004
(In Thousands)
Revenues:
Interest, fees and other income $9,381
Intercompany interest income -
Rental income 7,612
Operating lease income 1,576
---------
Total Revenues 18,569
Interest Expense (52)
Intercompany interest expense (2,062)
Operating lease and other depreciation (741)
---------
Interest Margin 15,714
Other Revenues and (Expenses):
Reversal of provision for credit losses 62,128
Net gain on financial assets 10,340
Operating expenses (2,049)
Gain from extinguishments of debt, net -
---------
Total Other Revenues and (Expenses) 70,419
---------
Income from continuing operations before income taxes 86,133
Income tax expense -
---------
Income from continuing operations 86,133
Discontinued operations, net of tax -
Net loss on disposal of operations, net of tax -
---------
Income (loss) before extraordinary item -
---------
Net Income $86,133
=========
FINOVA: Loan Administration's Second Quarter 2004 Results
---------------------------------------------------------
FINOVA Loan Administration, Inc.
Unaudited Condensed Balance Sheet
As of June 30, 2004
(In Thousands)
Assets
Current Assets:
Cash and cash equivalents -
Financing Assets:
Loans and other financing contracts, net -
Direct Financing Leases -
Leveraged leases -
---------
Total financing assets -
Reserve for credit losses -
---------
Net Financing assets -
Other financial assets:
Assets held for sale -
Operating leases -
Assets held for the production of income -
Investments -
Net assets of discontinued operations -
---------
Total other financial assets -
---------
Total Financial Assets -
Other Assets -
Intercompany loans -
Investment in subsidiaries -
Due from subsidiaries -
---------
Total Assets -
=========
Liabilities and Stockholders' Equity
Liabilities:
Berkadia Loan -
Intercompany note -
---------
Total debt -
Accounts payable and accrued expenses -
Deferred income taxes, net -
---------
Total liabilities -
Stockholders' equity:
Common Stock -
Additional capital -
Accumulated earnings (deficit) -
Accumulated other comprehensive income (loss) -
Related party transactions -
---------
Total Stockholders' equity -
---------
Total Liabilities and Stockholders' Equity -
=========
FINOVA Loan Administration, Inc.
Unaudited Condensed Statements of Operations
Six Months Ended June 30, 2004
(In Thousands)
Revenues:
Interest, fees and other income -
Intercompany interest income -
Rental income -
Operating lease income -
---------
Total revenues -
Interest expense -
Intercompany interest expense ($27)
Operating lease and other depreciation -
---------
Interest Margin (27)
Other Revenues and (Expenses):
Reversal of provision for credit losses -
Net gain (loss) on financial assets -
Operating expenses -
Gain from extinguishments of debt, net -
Net reorganization expense -
---------
Total other Revenues and (expenses) -
---------
Income (loss) from operations before income taxes (27)
Income tax expense -
---------
Loss from continuing operations (27)
Discontinued operations, net of tax -
Net loss on disposal of operations, net of tax -
---------
Net Income (Loss) ($27)
=========
FINOVA: Mezzanine Reports $9.9 Million Net Income in June 2004
--------------------------------------------------------------
FINOVA Mezzanine Capital, Inc.
Unaudited Condensed Balance Sheet
As of June 30, 2004
(In Thousands)
Current Assets:
Cash and cash equivalents -
Financing Assets:
Loans and other financing contracts, net $12,929
Direct Financing Leases -
Leveraged leases -
---------
Total financing assets 12,929
Reserve for credit losses (125)
---------
Net Financing assets 12,804
Other Financial assets:
Operating Leases -
Assets held for sale -
Assets held for the production of income -
Investments 1,907
Net assets of discontinued operations -
---------
Total other financial assets 1,907
---------
Total Financial Assets 14,711
Other Assets -
Due from subsidiaries -
Investment in subsidiaries -
Intercompany loans -
Investment in subsidiaries -
---------
Total Assets $14,711
=========
Liabilities and Stockholders' Equity
Liabilities:
Berkadia Loan -
Intercompany note -
Senior Notes, net - Reorganized Company -
Senior debt - Predecessor Company -
---------
Total debt -
Accounts payable and accrued expenses -
Deferred income taxes, net -
---------
Total liabilities -
Stockholders' equity:
Common Stock $1
Additional capital 18,527
Accumulated (deficit) earnings 76,457
Accumulated other comprehensive income (loss) (1,241)
Related party transactions - intercompany note (79,033)
---------
Total Stockholders' equity 14,711
---------
Total Liabilities and Stockholders' Equity $14,711
=========
FINOVA Mezzanine Capital, Inc.
Unaudited Condensed Statements of Operations
Six Months Ended June 30, 2004
(In Thousands)
Revenues:
Interest, fees and other income $4,102
Intercompany interest income 2,778
Rental income -
Operating lease income -
---------
Total revenues 6,880
Interest Expense -
Intercompany interest expense -
Operating lease and other depreciation -
---------
Interest Margin 6,880
Other Revenues and (Expenses):
Reversal of provision for credit losses -
Net gain on financial assets 3,060
Operating expenses 23
Gain from extinguishments of debt, net -
---------
Total other Revenues and (expenses) 3,083
---------
Income from continuing operations before income taxes 9,963
Income tax expense -
---------
Income from continuing operations 9,963
Discontinued operations, net of tax -
Net loss on disposal of operations, net of tax -
---------
Net Income (Loss) $9,963
=========
FOOTSTAR INC: Reports $13.8 Million Net Loss in July 2004
---------------------------------------------------------
On August 16, 2004, Footstar, Inc. and its debtor-affiliates filed
their consolidated monthly operating report for the period from
July 4, 2004 to July 31, 2004. The Debtors report a net loss of
$13.8 million in $58.2 million of net sales for July 2004. At
July 31, 2004, Footstar, Inc.'s consolidated balance sheet shows:
Total Current Assets 311,100,000
Total Assets $ 401,900,000
Current Liabilities 123,900,000
Total Liabilities 176,000,000
Subject to Compromise
Shareholders' Equity $ 39,400,000
A full-text copy of Footstar, Inc.'s Form 8-K is available at no
charge at:
http://www.sec.gov/Archives/edgar/data/1011308/000090951804000704/mv8-17ex99_1.txt
On March 2, 2004, Footstar, Inc. and substantially all of its
subsidiaries filed voluntary petitions under Chapter 11 of title
11, United States Code in the United States Bankruptcy Court for
the Southern District of New York (Case No. 04-22350 (ASH)). The
Debtors remain in possession of their assets and properties, and
continue to operate their businesses and manage their properties
as debtors-in-possession pursuant to sections 1107(a) and 1108 of
the Bankruptcy Code.
FORTUNE NATURAL: Reports $71,452 Net Loss for June 2004
-------------------------------------------------------
Fortune Natural Resources Corporation filed its monthly operating
report for June 2004 with the United States Bankruptcy Court for
the Eastern District of Louisiana (Bankr. Case No. 04-14112).
Fortune reports a $71,452 net loss in June 2004.
The Debtor's June 30 balance sheet shows:
Fortune Natural Resources Corporation
Balance Sheet
At June 30, 2004
Current Assets $107,018
Total Assets 5,932,900
Post-petition Liabilities 15,109
Total Liabilities 6,177,394
Total Equity (Net Worth) ($244,495)
On June 1, 2004, Fortune Natural Resources Corporation filed a
voluntary petition in the United States Bankruptcy Court, Eastern
District of Louisiana, for relief under Chapter 11 of Title 11,
U.S.C. Sections 101-1330. The Debtor continues to own its property
and operate its business as a Debtor-in-Possession pursuant to
Sections 1107 and 1108 of the Bankruptcy Code. No trustee or
examiner has been appointed in this case.
A full-text copy of Fortune Natural Resources Corporation's June
2004 Monthly Operating Report is available at no charge at:
http://www.sec.gov/Archives/edgar/data/38242/000003824204000013/exh99_1.txt
KEYSTONE CONSOLIDATED: July 2004 Net Income Tops $7.2 Million
-------------------------------------------------------------
For the month ending July 31, 2004, Keystone Consolidated
Industries reports earning $7,260,183 on $45,172,878 of net sales.
At July 31, 2004, Keystone Consolidated's balance sheet shows:
Current Assets $ 79,086,233
Total Assets 310,734,023
Current Liabilities 157,502,620
Stockholders' Deficit $ 18,622,502
A full-text copy of Keystone Consolidated Industries' July 2004
Monthly Operating Report is available at no charge at:
http://www.sec.gov/Archives/edgar/data/55604/000002424004000141/exhibit991july.txt
On February 26, 2004, Keystone Consolidated Industries, Inc.,
together with five of its direct and indirect subsidiaries
(FV Steel and Wire Company, DeSoto Environmental Management,
Inc., J.L. Prescott Company, Sherman Wire Company f/k/a DeSoto,
Inc., and Sherman Wire of Caldwell, Inc.), filed voluntary
petitions for relief under Chapter 11 of Title 11 of the United
States Code in the United States Bankruptcy Court for the Eastern
District of Wisconsin in Milwaukee.
KMART: Reports $155 Million Second Quarter 2004 Net Income
----------------------------------------------------------
Kmart Holding Corporation (Nasdaq: KMRT) reported financial
results for the second quarter of fiscal 2004. For the 13 weeks
ended July 28, 2004, Kmart Holding Corporation (Kmart or the
Company) reported net income of $155 million. The Company
reported a net loss of $5 million for the same period in 2003.
Operating income for the 13 weeks ended July 28, 2004 was $275
million or 5.7% of sales compared to $10 million or 0.2% of sales
for the same period in 2003. Operating income for the 13 weeks
ended July 28, 2004 included net gains on sales of assets of $72
million. Same-store sales and total sales decreased 14.9% and
15.3%, respectively, for the 13 weeks ended July 28, 2004,
compared to the 13 weeks ended July 30, 2003.
For the 26 weeks ended July 28, 2004, Kmart reported net income of
$248 million.
During the quarter, cash and cash equivalents increased
approximately $400 million to a total of $2.6 billion as of
July 28, 2004.
Julian C. Day, President and Chief Executive Officer of Kmart,
said, "We are pleased with our continued progress and ability to
deliver consistent profit. We have continued to focus on process
changes that simplify the operations of our stores and
distribution centers, including improving merchandise flow and
lowering inventory levels which result in lower shrink expense,
lower clearance and promotional markdowns and lower payroll
expenses."
Mr. Day added, "We are happy with the dramatically improved
styling and quality of our recently launched fall product lines,
and how they have been brought to life through marketing
partnerships such as those with E! Entertainment and The WB
Network. We will continue our attention on our stores, product
assortment, and the quality of our customers' shopping
experience, and remain focused on those strategies that have
contributed to the improved performance of the Company."
Management's Discussion and Analysis of Operations
Factors affecting same-store sales and total sales for the
13 weeks ended July 28, 2004, included reductions in promotional
events and newspaper advertising; the effect of unseasonably cool
weather in the current quarter on sales of summer seasonal
products including lawn and garden merchandise; and a transition
in our apparel lines leading up to back-to-school product
launches.
Gross margin increased $9 million to $1.24 billion for the 13
weeks ended July 28, 2004, from $1.23 billion for the 13 weeks
ended July 30, 2003. Gross margin as a percentage of sales
increased to 26.0% for the 13 weeks ended July 28, 2004, from
21.8% in the prior year. The improvement in the Company's gross
margin rate was primarily attributable to reduced markdowns on
promotions and clearance items, and improvements in shrinkage at
our distribution centers and stores. Included in gross margin
was a $16 million charge recorded in the second quarter of fiscal
2004 in conjunction with the store closings inventory
liquidations.
Selling, general and administrative expenses (SG&A) decreased $186
million to $1.04 billion, or 21.7%, of sales for the 13 weeks
ended July 28, 2004 from $1.23 billion, also 21.7% of sales, for
the 13 weeks ended July 30, 2003. The decline resulted from a
reduction in store payroll and related expenditures due to
increased operating efficiencies and reduced sales volume at our
stores, and to reductions in the Company's weekly and mid-week
circular advertising, partially offset by an increase in
electronic media advertising.
The remaining net reduction in SG&A is due to continued efforts to
reduce operating expenses.
Interest expense, net for the 13 weeks ended July 28, 2004 and
July 30, 2003 was $31 million and $21 million, respectively. In
July 2004, the Company voluntarily reduced the size of our credit
agreement from $1.5 billion to $1.0 billion to reduce the overall
cost of the facility. In conjunction with this action, the
Company accelerated the amortization of $9 million of the
associated debt issuance costs, which is included in Interest
expense, net for the 13 weeks ended July 28, 2004. During the 13
weeks ended July 28, 2004, $13 million of interest expense was
recorded for the accretion of obligations recorded at net present
value.
Discussion of Non-GAAP Financial Information
Year-to-date Adjusted EBITDA
Year-to-date Adjusted EBITDA (Year-to-date earnings before
interest, taxes, depreciation, amortization, net gains on sales
of assets, bankruptcy-related recoveries and certain other items)
is a non-GAAP financial measure.
Year-to-date Adjusted EBITDA is not the same as EBITDA defined in
Kmart's credit facility. Year-to-date Adjusted EBITDA is a
Company-defined metric used solely by Kmart's management for
the administration of the Company's incentive compensation
program for eligible employees. Year-to-date Adjusted EBITDA is
not a measure or indicator of the overall financial condition or
performance of Kmart and should not be used by investors as a
basis for formulating investment decisions as it excludes a
number of important cash and non-cash recurring items.
Management compensates for this limitation by using GAAP
measures, as well, in managing the business.
26-Weeks
Ended
July 28, 2004
-------------
Net income $248
Adjustments to reconcile to
Year-to-date Adjusted EBITDA:
Income tax provision 150
Interest expense, net 57
Depreciation and amortization 8
Net gains on sales of assets (104)
Bankruptcy-related recoveries (12)
Other 34
Year-to-date Adjusted EBITDA $381
Comparability of Financial Statements
Upon emergence from bankruptcy on May 6, 2003, Kmart Corporation
(Predecessor Company) applied the provisions of Fresh-Start
accounting effective as of April 30, 2003, at which time a new
reporting entity, Kmart Holding Corporation, was created. As a
result of applying Fresh-Start accounting, the reported historical
financial statements of the Predecessor Company for periods ended
prior to May 1, 2003 generally are not comparable to those of
Kmart. Therefore, comparisons of earnings per share data to
Predecessor Company results are not included. Results of
operations for the period ended April 30, 2003, refer
to the Predecessor Company.
A full-text copy of Kmart's Second Quarter Report for the fiscal
year 2004 is available for free at:
http://sec.gov/Archives/edgar/data/1229206/000095012404003850/0000950124-04-003850.txt
Kmart Holding Corporation
Consolidated Balance Sheets
As of July 28, 2004
(Unaudited)
(In millions)
Assets
Current Assets
Cash and cash equivalents $2,626
Merchandise inventories 3,212
Accounts receivable, net 225
Other current assets 130
--------------
Total Current Assets 6,193
Property and equipment, net 240
Other assets and deferred charges 212
--------------
TOTAL ASSETS $6,645
==============
Liabilities and Shareholders' Equity
Current Liabilities
Mortgages payable due within one year $4
Accounts payable 977
Accrued payroll and other liabilities 772
Taxes other than income taxes 291
--------------
Total Current Liabilities 2,044
Long-term Liabilities
Long-term debt and mortgages payable 103
Capital lease obligations 335
Pension obligations 880
Unfavorable operating leases 316
Other long-term liabilities 430
--------------
Total Liabilities 4,108
--------------
Shareholders' Equity 2,537
--------------
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY $6,645
==============
Kmart Holding Corporation
Consolidated Statements of Operations
13 Weeks Ended July 28, 2004
(Unaudited)
(In millions)
Sales $4,785
Cost of sales, buying and occupancy 3,543
--------------
Gross margin 1,242
Selling, general and administrative expenses 1,039
Net gains on sales of assets (72)
--------------
Operating income (loss) 275
Interest expense, net 31
Bankruptcy-related recoveries (5)
Equity income in unconsolidated subsidiaries -
--------------
Income (loss) from operations before income taxes 249
Provision for (benefit from) income taxes 94
--------------
Net income (loss) $155
==============
Kmart Holding Corporation
Consolidated Statements of Cash Flows
26 Weeks Ended July 28, 2004
(Unaudited)
(In millions)
Cash Flows From Operating Activities
Net income (loss) $248
Adjustments to reconcile net income (loss) to net cash
provided by operating activities:
Depreciation and amortization 24
Store closings inventory charges 17
Net gains on sales of assets (104)
Deferred income taxes 22
Equity income in unconsolidated subsidiaries (3)
Dividends received from Meldisco 3
Cash used for store closings and other charges -
Change in:
Merchandise inventories 10
Accounts receivable 41
Accounts payable 156
Taxes payable 133
Other assets 13
Other liabilities (24)
--------------
Net Cash Provided By Operating Activities 536
--------------
Cash Flows From Investing Activities
Proceeds from sales of assets 153
Capital expenditures (124)
--------------
Net Cash Provided By Investing Activities 29
--------------
Cash Flows From Financing Activities
Payments on capital lease obligations (25)
Payments on mortgages (2)
--------------
Net Cash Used For Financing Activities (27)
--------------
Net Change in Cash and Cash Equivalents 538
Cash and Cash Equivalents, Beginning of Period 2,088
--------------
Cash and Cash Equivalents, End of Period $2,626
==============
PEGASUS SATELLITE: Reports $470 Million Net Loss in June 2004
-------------------------------------------------------------
Pegasus Satellite Communications, Inc.
Unaudited Condensed Consolidated Balance Sheets
As of June 30, 2004
(in thousands)
Current assets $190,908
Property and equipment, net 49,320
Intangible assets, net 974,572
Other noncurrent assets 147,496
----------
TOTAL ASSETS $1,362,296
==========
Liabilities not subject to compromise:
Current liabilities $69,099
Long-term debt 502,602
Other noncurrent liabilities 48,181
Liabilities subject to compromise:
Unsecured debt and interest 962,537
Litigation verdict accrual 62,719
Accrued programming fees & commissions 55,203
Accounts payable and accrued expenses 2,789
----------
Liabilities subject to compromise 1,083,248
Minority interest 859
Redeemable preferred stock 243,486
Stockholder's deficit (585,179)
----------
TOTAL LIABILITIES AND STOCKHOLDER'S DEFICIT $1,362,296
==========
Pegasus Satellite Communications, Inc.
Unaudited Condensed Consolidated Statements of Operations
Three months ended June 30, 2004
(in thousands)
Net revenues $208,721
Operating expenses, excluding litigation
judgment, impairment of direct broadcast
satellite rights, and reorganization items 190,272
Litigation judgment 4,719
Impairment of direct broadcast satellite assets 429,638
Reorganization items 14,614
---------
Income (loss) from operations (430,522)
Interest and other expense, net (39,480)
Net benefit for income taxes -
Income (loss) from discontinued operations -
Cumulative effect of consolidating variable
interest entities -
---------
Net loss ($470,002)
=========
PG&E NATIONAL: USGen New England's May Monthly Operating Report
---------------------------------------------------------------
USGen New England, Inc.
Unaudited Balance Sheet
As of May 31, 2004
ASSETS
Cash and Cash Equivalents $224,468,669
Accounts Receivable 112,218,166
Support Payment Receivable - Current Undetermined
Fuel, Inventory and Supplies 52,694,703
Prepaid Expenses 35,012,478
Risk Management Asset - Current -
--------------
Total Current Assets Undetermined
Property, Plant and Equipment - net 1,463,730,470
Construction Work in Progress 34,697,702
Intangible Asset 4,187,761
Support Payment Receivable - Non-current Undetermined
Risk Management Asset - Non-current -
--------------
Total Postpetition Assets Undetermined
Prepetition IC Accounts Receivable Undetermined
Prepetition Accounts Receivable Undetermined
Prepetition Prepaid Expenses Undetermined
--------------
Total Prepetition Assets Undetermined
--------------
TOTAL ASSETS Undetermined
==============
LIABILITIES AND EQUITY
Accounts Payable $25,226,315
Accrued Liabilities 96,649,038
Risk Management Liability - Current -
--------------
Total Current Liabilities 121,875,352
Deferred Income Taxes 77,604,772
Risk Management Liability - Non-current -
Other Liabilities 8,548,878
--------------
Total Postpetition Liabilities 208,029,002
Prepetition Accounts Payable Undetermined
Prepetition IC Accounts Payable Undetermined
Prepetition Market Accounts Payable Undetermined
Current Debt 84,770,293
Out of Market Liabilities - Current 29,869,846
Out of Market Liabilities - Non-current 218,028,433
--------------
Total Prepetition Liabilities Undetermined
--------------
Total Liabilities Undetermined
Shareholder's Equity
Common Stock, Additional Paid-In Capital 1,347,736,929
Other Comprehensive Income (8,158,884)
Retained Earnings (261,478,469)
--------------
Total Shareholder's Equity $1,078,099,576
--------------
TOTAL LIABILITIES AND SHAREHOLDER'S EQUITY Undetermined
==============
USGen New England, Inc.
Unaudited Income Statement
For the Period May 1 to May 31, 2004
REVENUE:
Contract Revenue $41,862,526
Market Energy 11,047,565
Ancillary Products 582,295
Market Capacity 209,500
Power Hedges (1,015,713)
Other Revenue (2,385,616)
--------------
Total Revenue 50,300,557
FUEL COSTS:
Contract Expense 8,860,312
Fuel Expense 18,435,868
Fuel Hedges (263,319)
--------------
Total Fuel Costs 27,032,862
--------------
Gross Profit 23,267,695
OPERATING EXPENSES:
Direct Labor 5,124,005
Direct Materials 3,728,687
Direct Subcontractor Services 6,680,842
Other Operating 1,473,731
Bonus Accrual, Union and non-union 401,171
Ash Disposal 1,409,445
--------------
Total Station Operating Expenses 18,817,880
Corporate Expense:
Corporate Labor 586,852
Bonus 124,263
Travel and Entertainment 12,865
Insurance 518,569
Professional Services 2,769,857
Other General Administrative 194,921
--------------
Total Corporate Expenses 4,207,326
General Expenses:
Property Taxes 3,266,040
Interconnect Cost 113,093
Amortization -
Depreciation 5,568,308
--------------
Total General Expenses 8,947,440
--------------
Total Operating Expenses 31,972,647
--------------
Total Operating Income (8,704,952)
Other Income (Expenses):
Lease Expense (225,000)
Interest Income - NEES Receivable 1,917,961
Income - Other 169,748
Expense - Other -
Gain 74,250
Bank and LC Fees (57,832)
--------------
Total Other Income (Expenses) 1,879,127
--------------
Income Before Tax (6,825,825)
Income Taxes (2,811,903)
--------------
Net Income ($4,013,922)
==============
USGen New England, Inc.
Unaudited Cash Flow Statement
For the Period May 1 to May 31, 2004
CASH FLOWS FROM OPERATING ACTIVITIES:
Net Income ($4,013,922)
Adjustments to reconcile net income to net
cash provided by operating activities:
Depreciation 5,568,308
Amortization 747,581
Loss on disposal of fixed assets (74,250)
Change in assets and liabilities:
Accounts receivable (Increase) 16,263,803
Inventory (Increase) (9,737,574)
Prepaid, Deposits & Other (Increase) (2,207,996)
Deferred Income Taxes (Decrease) (551,303)
Accounts Payable (Decrease) 8,954,935
Accrued Liabilities (Decrease) 2,130,972
Liabilities - Other (Decrease) (3,105,674)
Prepetition Assets (Increase) 1,950,000
Prepetition Liabilities (Decrease) (3,317,424)
Equity - Other (Increase) 2,099,570
--------------
Net cash (used in) provided by
operating activities 14,707,026
CASH FLOWS FROM INVESTING ACTIVITIES:
Property, plant and equipment (5,360,490)
Change in Investment in Subsidiary -
Support payments received - principle 5,685,389
--------------
Net cash provided by (used in)
investing activities 324,899
CASH FLOWS FROM FINANCING ACTIVITIES:
Increase in Debt -
Capital Contributions -
--------------
Net cash provided by (used in) financing
activities -
--------------
NET INCREASE IN CASH AND CASH EQUIVALENTS 15,031,925
CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD 209,436,744
--------------
CASH AND CASH EQUIVALENTS, END OF PERIOD $224,468,669
==============
PG&E NATIONAL: USGen New England's June Monthly Operating Report
----------------------------------------------------------------
USGen New England, Inc.
Unaudited Balance Sheet
As of June 30, 2004
ASSETS
Cash and Cash Equivalents $205,291,269
Accounts Receivable 126,062,219
Support Payment Receivable - Current Undetermined
Fuel, Inventory and Supplies 54,087,233
Prepaid Expenses 27,853,761
Risk Management Asset - Current -
--------------
Total Current Assets Undetermined
Property, Plant and Equipment - net 1,461,256,182
Construction Work in Progress 36,480,526
Intangible Asset $5,831,163
Support Payment Receivable - Non-current Undetermined
Risk Management Asset - Non-current -
--------------
Total Postpetition Assets Undetermined
Prepetition IC Accounts Receivable Undetermined
Prepetition Accounts Receivable Undetermined
Prepetition Prepaid Expenses Undetermined
--------------
Total Prepetition Assets Undetermined
--------------
TOTAL ASSETS Undetermined
==============
LIABILITIES AND EQUITY
Accounts Payable $23,877,407
Accrued Liabilities 93,537,884
Risk Management Liability - Current -
--------------
Total Current Liabilities 117,415,291
Deferred Income Taxes 77,514,187
Risk Management Liability - Non-current -
Other Liabilities 8,621,896
--------------
Total Postpetition Liabilities 203,551,375
Prepetition Accounts Payable Undetermined
Prepetition IC Accounts Payable Undetermined
Prepetition Market Accounts Payable Undetermined
Current Debt 84,770,293
Out of Market Liabilities - Current 29,078,887
Out of Market Liabilities - Non-current 215,771,266
--------------
Total Prepetition Liabilities Undetermined
--------------
Total Liabilities Undetermined
Shareholder's Equity
Common Stock, Additional Paid-In Capital 1,347,736,929
Other Comprehensive Income (6,356,599)
Retained Earnings (268,423,714)
--------------
Total Shareholder's Equity $1,072,956,617
--------------
TOTAL LIABILITIES AND SHAREHOLDER'S EQUITY Undetermined
==============
USGen New England, Inc.
Unaudited Income Statement
For the Period June 1 to June 30, 2004
REVENUE:
Contract Revenue $48,182,855
Market Energy 5,435,920
Ancillary Products 1,129,214
Market Capacity 209,500
Power Hedges (480,176)
Other Revenue (2,197,766)
--------------
Total Revenue 52,279,547
FUEL COSTS:
Contract Expense 8,796,369
Fuel Expense 25,729,955
Fuel Hedges (276,282)
--------------
Total Fuel Costs 34,250,042
--------------
Gross Profit 18,029,505
OPERATING EXPENSES:
Direct Labor 5,499,356
Direct Materials 2,228,449
Direct Subcontractor Services 4,215,930
Other Operating 1,655,284
Bonus Accrual, Union and non-union 421,855
Ash Disposal 1,491,294
--------------
Total Station Operating Expenses 15,512,168
Corporate Expense:
Corporate Labor 568,729
Bonus 111,891
Travel and Entertainment 18,761
Insurance 414,204
Professional Services 4,416,031
Other General Administrative 200,675
--------------
Total Corporate Expenses 5,730,290
General Expenses:
Property Taxes 3,266,040
Interconnect Cost 110,500
Depreciation 5,597,169
--------------
Total General Expenses 8,973,709
--------------
Total Operating Expenses 30,216,168
--------------
Total Operating Income (12,186,663)
Other Income (Expenses):
Lease Expense (400,000)
Interest Income - NEES Receivable 1,881,257
Income - Other 174,656
Expense - Other -
Gain (1,230,297)
Bank and LC Fees (58,268)
--------------
Total Other Income (Expenses) 367,348
--------------
Income Before Tax (11,819,315)
Income Taxes (4,874,071)
--------------
Net Income ($6,945,244)
==============
USGen New England, Inc.
Unaudited Cash Flow Statement
For the Period June 1 to June 30, 2004
CASH FLOWS FROM OPERATING ACTIVITIES:
Net Income ($6,945,244)
Adjustments to reconcile net income to net
cash provided by operating activities:
Depreciation 5,597,169
Amortization (1,643,326)
Loss on disposal of fixed assets 1,230,297
Change in assets and liabilities:
Accounts receivable (Increase) (13,528,856)
Inventory (Increase) (1,392,530)
Prepaid, Deposits & Other (Increase) 7,158,718
Deferred Income Taxes (Decrease) (90,585)
Accounts Payable (Decrease) (1,348,907)
Accrued Liabilities (Decrease) (3,111,154)
Liabilities - Other (Decrease) (2,975,108)
Prepetition Assets (Increase) (2,316,347)
Prepetition Liabilities (Decrease) (1,199,828)
Equity - Other (Increase) 1,802,285
--------------
Net cash (used in) provided by
operating activities (18,763,416)
CASH FLOWS FROM INVESTING ACTIVITIES:
Property, plant and equipment (6,136,002)
Change in Investment in Subsidiary (75)
Support payments received - principle 5,722,093
--------------
Net cash (used in) provided by investing
activities (413,985)
CASH FLOWS FROM FINANCING ACTIVITIES:
Increase in Debt -
Capital Contributions -
--------------
Net cash provided by (used in) financing
activities -
--------------
NET INCREASE (DECREASE) IN CASH
AND CASH EQUIVALENTS (19,177,400)
CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD 224,468,669
--------------
CASH AND CASH EQUIVALENTS, END OF PERIOD $205,291,269
==============
PILLOWTEX CORP: Releases June 2004 Monthly Operating Report
-----------------------------------------------------------
Pillowtex, et al.
Consolidated Balance Sheets
As of July 3, 2004
ASSETS
Cash and cash equivalents $36,089,329
Accounts Receivables (Net) 12,439,651
Inventory (Net) 5,335,000
Pre-Paid Expenses 3,791,906
Other Assets 10,478,681
-----------
TOTAL CURRENT ASSETS 68,134,567
-----------
Property Plan & Equipment (Net) -
Intangibles (Net) -
Other Non-Current 1,823,137
Inter-Company -
-----------
TOTAL ASSETS $69,957,704
===========
LIABILITIES & EQUITY
Liabilities Not Subject to Compromise
Accounts Payable -
Accrued Expenses 39,851,204
Deferred Taxes 295,000
Professional Fees -
Secured Debt 292,000
Other 86,001,000
-----------
Total Not Subject to Compromise 126,439,204
-----------
Liabilities Subject to Compromise
Current Debt -
Unsecured debt 25,540,434
-----------
Total Subject to Compromise 25,540,434
-----------
Preferred Convertible Stock -
Equity
Inter-Company (7,939,194)
Investment in Subs -
Additional Paid in Capital 196,004,000
Common Stock 191,000
Deferred Compensation (188,000)
Retained Earnings (208,591,740)
Pension Equity Adjustment (61,501,000)
Translation 3,000
-----------
TOTAL EQUITY (74,082,740)
-----------
TOTAL LIABILITIES & EQUITY $69,957,704
===========
Pillowtex, et al.
Consolidated Statement of Operations
For Three Months Ended July 3, 2004
Net Revenues $3,011
Cost of Goods Sold 445,936
-----------
Gross Profit (442,925)
Selling, General & Administrative 145,473
Other 107,795
-----------
Earnings from Operations (696,193)
Interest Expense (359,502)
Other Income & Expenses 129,298
Reorganization Expenses
Professional Fees 50,000
U.S. Trustee Fees -
Gain/Loss from Sale of Assets 1,580,708
Other (Income)/Expense -
-----------
Total Reorganization Expenses 1,630,708
Income Before Taxes (2,096,697)
Income Taxes -
Income (Loss) on Disposal -
-----------
Net Profit or (Loss) ($2,096,697)
===========
Pillowtex, et al.
Actual Cash Flow
For the Month of June 2004
Accounts Receivable Collections $1,403,000
Brown & Joseph Fees (13,000)
Brown & Joseph Personnel (16,000)
Inventory Bulk Sales 3,000
Property Tax Related to Asset Sale -
Property (Net) 3,398,000
Miscellaneous Proceeds -
-----------
Total Proceeds 4,775,000
Prepetition Cure Cost of Capital Leases -
Balance of 2003 Personal Property Tax -
Alliance Street Production -
Interest Expense (Term and Revolver) -
Idle Facility Cost (175,000)
Electric Demand Charge -
Retail Store Operating Costs -
Warehousing, Shipping & Billing 5,000
Freight & Duty -
Manufacturing -
Inventory Clean-up -
Accrued Employee Expenses -
Critical Vendor Payments -
Continuing Medical -
Terminated Medical -
Workers' Compensation/Other Insurance -
Corporate 121,000
Severance/Retention -
Warehouse Vacation Pay -
SB Capital Estate Charge Back -
Early Termination Fee -
DIP Fees -
Professional Fees 437,000
Miscellaneous Expenses 487,000
-----------
Total Expenses 875,000
-----------
Net Cash Flow $3,900,000
===========
Pillowtex, et al.
Disbursement Report
For the Month Ended July 3, 2004
Net Payroll & Payroll Taxes Paid $651,397
Sales, Use & Other Taxes Paid -
Inventory Purchases -
Interest on Long Term Debt -
Secured/Rental/Lease -
Utilities 19,175
Insurance -
Administrative 18,782
Professional Fees 459,481
U.S. Trustee's Fees -
Others 107,722
-----------
Total for U.S. Trustee Fees $1,256,557
===========
Headquartered in Dallas, Texas, Pillowtex Corporation --
http://www.pillowtex.com/-- sold top-of-the-bed products to
virtually every major retailer in the U.S. and Canada. The
Company filed for Chapter 11 protection on November 14, 2000
(Bankr. Del. Case No. 00-4211), emerged from bankruptcy under a
chapter 11 plan, and filed a second time on July 30, 2003 (Bankr.
Del. Case No. 03-12339). The second chapter 11 filing triggered
sales of substantially all of the Company's assets. David G.
Heiman, Esq., at Jones Day, and William H. Sudell, Jr., Esq., at
Morris Nichols Arsht & Tunnel, represent the Debtors. On July 30,
2003, the Company listed $548,003,000 in assets and $475,859,000
in debts. (Pillowtex Bankruptcy News, Issue No. 68; Bankruptcy
Creditors' Service, Inc., 215/945-7000)
RCN CORP: Files Amended First Quarter 2004 Financial Results
------------------------------------------------------------
On August 16, 2004, RCN Corporation filed an amended Form 10-Q
with the Securities and Exchange Commission restating the
consolidated financial statements as of, and for the three months
ended March 31, 2004 to correct depreciation expense.
Patrick T. Hogan, RCN Executive Vice President and Chief
Financial Officer, relates that in July 2004, the Company
discovered it had to record additional depreciation expense
during the quarter ended March 31, 2004, because:
1. In 2003, the Company recorded an impairment of property,
plant and equipment of $107.6 million. While the charge
was correctly recorded for the year ended December 31,
2003, the effects of the impairment were improperly
recorded in the financial records for the quarter ended
March 31, 2004, and resulted in a $28.1 million under-
recording of depreciation expense for the quarter ended
March 31, 2004.
2. In the quarter ended March 31, 2004, the Company determined
that a change in the estimated useful life of technical
labor and material associated with new customer
installations was required to reduce the life to 5 years
from 10. While the change was effective January 1, 2004,
the amount recorded was improperly recorded as effective
March 1, 2004, and resulted in a $12.1 million under-
recording of depreciation expense for the quarter ended
March 31, 2004.
The significant effects of the restatement on the Company's
consolidated financial statements as of and for the three months
ended March 31, 2004, are:
As Previously
(In Thousands) Reported As Restated
------------- -----------
At March 31, 2004:
Property, plant and equipment,
net of depreciation $885,154 $844,907
Total assets 1,486,782 1,446,535
Accumulated deficit (4,385,541) (4,425,788)
Total shareholders' deficit (2,138,282) (2,178,529)
Total liabilities, redeemable
Preferred stock and
Stockholders' deficit 1,486,782 1,446,535
For the three months ended
March 31, 2004:
Depreciation and amortization $29,460 $69,707
Operating loss (25,301) (65,548)
Loss from continuing operations
before income taxes (66,554) (106,801)
Loss from continuing operations
before equity in unconsolidated
entities and minority interest (66,554) (106,801)
Net loss from continuing operations (56,835) (97,082)
Net income (loss) 35,365 (4,882)
Net income (loss) to common
shareholders 2,935 (37,312)
Net cash used in operating activities ($7,460) ($7,460)
A full-text copy of RCN Corp.'s Amended First Quarter Fiscal 2004
Results is available at no cost at:
http://sec.gov/Archives/edgar/data/1041858/000119312504141923/d10qa.htm
RCN Corporation and Subsidiaries
(Including non-Debtors)
Unaudited Condensed Consolidated Balance Sheets
As of March 31, 2004
(In Thousands)
ASSETS
Current Assets:
Cash and temporary cash investments $19,559
Accounts receivable from related parties 14,174
Accounts receivable for doubtful accounts 4,386
Unbilled revenues 1,202
Interest receivable 1,366
Prepayments and other current assets 31,709
Short-term restricted investments 142,502
Current assets of discontinued operations -
--------------
Total current assets 254,898
Property, plant and equipment, net depreciation 844,907
Investments 208,440
Intangible assets 1,460
Goodwill, net 6,130
Long-term restricted investments 100,000
Deferred charges and other assets 30,700
Non-current assets of discontinued operations -
--------------
Total assets $1,446,535
==============
LIABILITIES AND SHAREHOLDERS' DEFICIT
Current Liabilities:
Current maturities of long-term debt $1,579,981
Accounts payable 21,621
Accounts payable to related parties 6,126
Advance billings and customer deposits 26,522
Accrued exit costs 29,834
Accrued expenses 150,553
Current liabilities of discontinued operations -
--------------
Total current liabilities 1,814,637
Other deferred credits 5,686
Commitments and contingencies
Redeemable preferred stock, Series A 346,538
Redeemable preferred stock, Series B 1,458,203
Shareholders' deficit:
Preferred stock -
Class A Common stock 112,163
Class B Common stock 11,425
Additional paid-in-capital 2,151,344
Cumulative translation adjustments (17,288)
Unearned compensation expense (263)
Unrealized appreciation on investments 188
Treasury stock (10,310)
Accumulated deficit (4,425,788)
--------------
Total shareholders' deficit (2,178,529)
--------------
Total liabilities and shareholders' deficit $1,446,535
==============
RCN Corporation and Subsidiaries
(Including non-Debtors)
Unaudited Condensed Consolidated Statement of Operations
For three months ended March 31, 2004
(In Thousands)
Revenues $121,260
Costs and expenses:
Direct expenses 41,228
Operating and selling 76,615
Non-cash stock based compensation 1,080
Impairments and other charges, net (1,822)
Depreciation and amortization 69,707
--------------
Operating loss (65,548)
Investment income 926
Interest expense (42,429)
Other income, net 250
--------------
Loss from continuing operations before taxes (106,801)
Income tax provision -
--------------
Loss from continuing operations before equity (106,801)
Equity in income of unconsolidated entities 9,719
--------------
Net loss from continuing operations (97,082)
Discontinued operations
Income from discontinued operations 92,200
--------------
Net (loss) income ($4,882)
==============
RCN Corporation and Subsidiaries
Unaudited Condensed Consolidated Statement of Cash Flows
For three months ended March 31, 2004
(In Thousands)
Cash flows from operating activities:
Net (loss) income ($4,882)
Income from discontinued operations (2,422)
Gain on sale of discontinued operation (89,778)
--------------
Net loss from continuing operations (97,082)
Adjustments to reconcile net loss from
continuing operations to net cash
used in operating activities:
Accretion of discounted debt -
Amortization of financing costs 2,321
Non-cash stock based compensation expense 1,080
Gain on sale of assets -
Depreciation and amortization 69,707
Deferred income taxes, net -
Provision for losses on accounts receivable 2,335
Equity in income of unconsolidated entities (9,719)
Impairments and special charges (1,822)
--------------
(33,180)
--------------
Net change in working capital 26,510
--------------
Net cash used in continuing operations (6,670)
Cash (used in) provided by
discontinued operations (790)
--------------
Net cash used in operating activities (7,460)
Cash flows from investing activities:
Additions to property, plant and equipment (12,283)
Short-term investments -
Proceeds from sale of assets -
Proceeds from sale of discontinued operations 120,203
Discontinued operations (402)
Increase in investments (24,178)
Other -
--------------
Net cash provided by (used in)
investing activities 83,340
Cash flows from financing activities:
Repayment of long-term debt (74,290)
Repayment of capital lease obligations (426)
Payments made for debt financing costs -
--------------
Net cash used in financing activities (74,716)
--------------
Net increase in cash and
temporary cash investments 1,164
--------------
Cash and temporary cash investments
at beginning of period 18,395
--------------
Cash and temporary cash investments
at end of period $19,559
==============
RCN CORP: Reports $4.4 Million Net Loss in June 2004
----------------------------------------------------
RCN Corporation, Hot Spots Production, Inc.,
RCN Finance, LLC, RLH Property Corporation and TEC Air, Inc.
(Debtors-in-Possession)
Unaudited Condensed Combined Consolidated Balance Sheets
As of June 30, 2004
(In Thousands)
ASSETS
Current Assets:
Cash and temporary cash investments $775
Other current assets 753
--------------
Total current assets 1,528
Accounts receivable from non-combined subsidiaries 913,390
Investment in and advances to
non-combined subsidiaries 1,511,823
Deferred charges and other assets 250,929
--------------
Total assets $2,677,670
==============
LIABILITIES AND SHAREHOLDERS' DEFICIT
Current Liabilities:
Current maturities of long-term debt $451,538
Accounts payable and accrued expenses 5,715
--------------
Total current liabilities 457,253
Accounts payable to non-combined subsidiaries 1,476,150
Prepetition liabilities subject to compromise
Liabilities subject to compromise 1,190,586
Series A redeemable Preferred stock 350,362
Series B redeemable Preferred stock 1,474,850
Shareholders' deficit:
Common stock 123,588
Additional paid in capital 2,152,630
Cumulative translation adjustment (17,288)
Unearned compensation expense (176)
Treasury stock (10,166)
Unrealized appreciation on investments (193)
Accumulated deficit (4,519,926)
--------------
Total shareholders' deficit (2,271,596)
--------------
Total liabilities and shareholders' deficit $2,677,670
==============
RCN Corporation, Hot Spots Production, Inc.,
RCN Finance, LLC, RLH Property Corporation and TEC Air, Inc.
(Debtors-in-Possession)
Unaudited Condensed Combined Statement of Operations
For the period May 27, 2004 through June 30, 2004
(In Thousands)
Revenues -
Costs and expenses $36
Non-cash stock based compensation 506
Reorganization items 2,744
--------------
Operating loss (3,286)
Interest expense 3,447
Other expense 47
--------------
Loss before income taxes (6,747)
(Benefit) provision for income taxes -
Equity in the income of non-combined subsidiaries 2,101
--------------
Net loss ($4,646)
==============
RCN Corporation, Hot Spots Production, Inc.,
RCN Finance, LLC, RLH Property Corporation and TEC Air, Inc.
(Debtors-in-Possession)
Unaudited Condensed Combined Statement of Cash Flows
For the period May 27, 2004 through June 30, 2004
(In Thousands)
Cash flows from operating activities:
Net loss ($4,646)
Non-cash stock based compensation 506
Equity income of non-combined subsidiaries (2,101)
Amortization of financing costs 537
--------------
Net cash (used in) operating activities (11,055)
Cash flows from financing activities:
Payment of long-term debt (10,256)
Intercompany receipts from
non-combined subsidiaries, net 15,960
--------------
Net cash provided by financing activities 5,704
--------------
Net increase (decrease) in cash and
temporary cash investments -
--------------
Beginning cash & temporary cash investments 775
--------------
Ending cash & temporary cash investments $775
==============
ROUGE INDUSTRIES: Files June 2004 Monthly Operating Report
----------------------------------------------------------
On August 11, 2004, Rouge Industries, Inc., and its wholly owned
subsidiaries, Rouge Steel Company, QS Steel, Inc., and Eveleth
Taconite Company, filed its June 2004 monthly operating report
with the United States Bankruptcy Court for the District of
Delaware in Wilmington.
Substantially all of the Debtors' assets were acquired on January
30, 2004, by SeverStal N.A. in exchange for cash and other
consideration pursuant to the terms of the Asset Purchase
Agreement. The APA was authorized by an order of the Court on
December 2, 2003, subsequently amended and executed on January 30,
2004. As of June 30, 2004, the Company saw an ending cash balance
of $101,830,400.
A full-text copy of Rouge Industries, Inc.'s June 2004 Monthly
Operating Report is available at no charge at:
http://www.sec.gov/Archives/edgar/data/918577/000095012304009849/y00683exv99w1.htm
Headquartered in Dearborn, Michigan, Rouge Industries, Inc., an
integrated producer of flat-rolled steel, filed for chapter 11
protection on October 23, 2003 (Bankr. Del. Case No. 03-13272).
Donna L. Harris, Esq., Robert J. Dehney, Esq., at Morris, Nichols,
Arsht & Tunnell represent the Debtors in their restructuring
efforts. When the Debtors filed for protection from their
creditors, they listed total assets of $558,131,000 and total
debts of $558,131,000.
TWINLAB CORPORATION: Files July 2004 Monthly Operating Report
-------------------------------------------------------------
On August 16, 2004, Twinlab Corporation (n/k/a TL Administration
Corporation ), Twin Laboratories Inc. (n/k/a TL Administration
Inc.) and Twin Laboratories (UK) Ltd. (n/k/a TL Administration
(UK) Ltd.) filed its Monthly Operating Reports for the month ended
July 31, 2004 with the Securities and Exchange Commission.
At July 31, 2004, Twinlab Corporation (n/k/a TL Administration
Corporation) reports that it has no independent means of
generating revenue due to its non-operation. As a holding
company, Twinlab's internal sources of funds to meet its cash
needs, including the payment of expenses, are dividends and other
permitted payments from its direct and indirect subsidiaries.
Full-text copies of the Debtors' July 2004 Monthly Operating
Report is available at no charge at:
http://www.sec.gov/Archives/edgar/data/1015868/000095012304009813/0000950123-04-009813-index.htm
On September 4, 2003, Twinlab Corporation, Twin Laboratories Inc.
and Twin Laboratories (UK) Ltd. commenced voluntary cases under
chapter 11 of title 11 of the United States Code in the United
States Bankruptcy Court for the Southern District of New York.
These chapter 11 cases are being jointly administered under
chapter 11 case number 03-15564 (CB) and are pending before the
Honorable Cornelius Blackshear.
In addition, on September 4, 2003, the Companies entered into that
certain asset purchase agreement with IdeaSphere, Inc. of Grand
Rapids, Michigan, pursuant to which the Companies sold
substantially all of their assets. The sale closed on December 19,
2003, effective as of December 9, 2003. In connection with the
sale, the Debtors obtained an order from the Court authorizing
them to change their names. Twinlab Corporation changed its name
to TL Administration Corporation, Twin Laboratories Inc. changed
its name to TL Administration Inc. and Twin Laboratories (UK) Ltd.
changed its name to TL Administration (UK) Ltd.
The Debtors continue to operate as debtors-in-possession pursuant
to sections 1107(a) and 1108 of the Bankruptcy Code.
WORLD ACCESS: Releases June 2004 Monthly Operating Reports
----------------------------------------------------------
World Access, Inc., and its WA Telcom Products Co., Inc., World
Access Telecommunications Group, Inc., FaciliCom International,
L.L.C. and WorldxChange Communications, Inc., subsidiaries
released Monthly Operating Reports this week for June 2004.
The companies caution that the information in these reports is
unaudited and has not been reviewed by an independent accountant.
The Monthly Operating Reports for the month ending June 30, 2004
show:
Beginning Cash Ending Cash
Balance Balance
Debtor Entity -------------- --------------
-------------
World Access, Inc. $13,683,836.80 12,627,416.24
WA Telcom Products
Co., Inc. 10,102,974.52 10,110,394.12
World Access Telecommunications
Group, Inc. 7,724,771.95 7,740,884.61
FaciliCom International, L.L.C. 14,427,677.50 14,427,677.50
WorldxChange Communications. 3,295,173.70 3,295,749.70
Full-text copies of the Debtors' Monthly Operating Reports are
available at no charge at:
World Access Inc.:
http://www.sec.gov/Archives/edgar/data/1071645/000095014404008355/g90540exv99w1.txt
WA Telcom Products Co., Inc.:
http://www.sec.gov/Archives/edgar/data/1071645/000095014404008355/g90540exv99w2.txt
World Access Telecommunications Group, Inc.:
http://www.sec.gov/Archives/edgar/data/1071645/000095014404008355/g90540exv99w3.txt
Facilicom International, L.L.C.:
http://www.sec.gov/Archives/edgar/data/1071645/000095014404008355/g90540exv99w4.txt
WorldxChange Communications:
http://www.sec.gov/Archives/edgar/data/1071645/000095014404008355/g90540exv99w5.txt
On April 24, 2001, World Access, Inc., and its debtor-affiliates
filed for chapter 11 protection in the United States Bankruptcy
Court for the Northern District of Illinois, Eastern Division
(Bankr. Case No. 01-14633-SPS).
*********
Monday's edition of the TCR delivers a list of indicative prices
for bond issues that reportedly trade well below par. Prices are
obtained by TCR editors from a variety of outside sources during
the prior week we think are reliable. Those sources may not,
however, be complete or accurate. The Monday Bond Pricing table
is compiled on the Friday prior to publication. Prices reported
are not intended to reflect actual trades. Prices for actual
trades are probably different. Our objective is to share
information, not make markets in publicly traded securities.
Nothing in the TCR constitutes an offer or solicitation to buy or
sell any security of any kind. It is likely that some entity
affiliated with a TCR editor holds some position in the issuers'
public debt and equity securities about which we report.
Each Tuesday edition of the TCR contains a list of companies with
insolvent balance sheets whose shares trade higher than $3 per
share in public markets. At first glance, this list may look like
the definitive compilation of stocks that are ideal to sell short.
Don't be fooled. Assets, for example, reported at historical cost
net of depreciation may understate the true value of a firm's
assets. A company may establish reserves on its balance sheet for
liabilities that may never materialize. The prices at which
equity securities trade in public market are determined by more
than a balance sheet solvency test.
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interest to troubled company professionals. All titles are
available at your local bookstore or through Amazon.com. Go to
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Monthly Operating Reports are summarized in every Saturday edition
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For copies of court documents filed in the District of Delaware,
please contact Vito at Parcels, Inc., at 302-658-9911. For
bankruptcy documents filed in cases pending outside the District
of Delaware, contact Ken Troubh at Nationwide Research &
Consulting at 207/791-2852.
*********
S U B S C R I P T I O N I N F O R M A T I O N
Troubled Company Reporter is a daily newsletter co-published by
Bankruptcy Creditors' Service, Inc., Fairless Hills, Pennsylvania,
USA, and Beard Group, Inc., Frederick, Maryland USA. Yvonne L.
Metzler, Emi Rose S.R. Parcon, Bernadette C. de Roda, Rizande B.
Delos Santos, Jazel P. Laureno, Cherry Soriano-Baaclo, Marjorie
Sabijon and Peter A. Chapman, Editors.
Copyright 2004. All rights reserved. ISSN: 1520-9474.
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