T R O U B L E D C O M P A N Y R E P O R T E R
Saturday, January 5, 2008, Vol. 12, No. 4
Headlines
ASARCO LLC: Earns $40,654,000 in Month Ended November 30, 2007
DANA CORP: Incurs $29,000,000 Net Loss in Month Ended November 30
DELPHI CORP: Incurs $231 Million Net Loss in Month Ended Nov. 30
DUNMORE HOMES: Files Schedules of Assets and Liabilities
HANCOCK FABRICS: Posts $17,000 Net Loss in Month Ended December 1
HOMEBANC MORTGAGE: Posts $11,594,000 Net Loss in November 2007
INTERSTATE BAKERIES: Posts $13,401,611 Net Loss in November 2007
IWT TESORO: Incurs $929,405 Net Loss in Month Ended November 30
LEVITZ FURNITURE: Files Schedules of Assets and Liabilities
MUSICLAND HOLDING: Posts $30,000 Net Loss in October 2007
MUSICLAND HOLDING: Posts $296,000 Net Loss in November 2007
NY WESTCHESTER: Submits Operating Report for November 2007
PERFORMANCE TRANS: Files Schedules of Assets and Liabilities
PERFORMANCE TRANS: Hadley Files Schedules of Assets and Debts
PERFORMANCE TRANS: Leaseway Files Schedules of Assets and Debts
PERFORMANCE TRANS: PLG Leasing Files Schedules of Assets and Debts
REMY WORLDWIDE: Incurs $5,932,000 Net Loss in October 2007
SOLUTIA INC: Posts $15,000,000 Net Loss in November 1-30, 2007
*********
ASARCO LLC: Earns $40,654,000 in Month Ended November 30, 2007
--------------------------------------------------------------
ASARCO LLC, et al.
Balance Sheet
As of November 30, 2007
ASSETS
Current Assets:
Cash $922,758,000
Restricted Cash 26,950,000
Accounts receivable, net 150,085,000
Inventory 270,748,000
Prepaid expenses 3,881,000
Other current assets 18,404,000
---------------
Total Current Assets 1,392,826,000
Net property, plant and equipment 460,244,000
Other Assets
Investments in subs 114,036,000
Advances to affiliates 480,000
Prepaid pension & retirement plan 0
Non-current deferred tax asset 40,951,000
Other 96,120,000
---------------
Total assets $2,104,659,000
===============
LIABILITIES
Postpetition liabilities:
Accounts payable $52,845,000
Accrued liabilities 543,701,000
Debtor-in-possession financing 0
---------------
Total postpetition liabilities 596,546,000
Prepetition liabilities:
Not subject to compromise - credit 4,053,000
Not subject to compromise - other 142,325,000
Advances from affiliates 24,659,000
Subject to compromise 1,684,016,000
---------------
Total prepetition liabilities 1,855,053,000
---------------
Total liabilities 2,451,599,000
===============
OWNERS' EQUITY (DEFICIT)
Common stock 508,324,000
Additional paid-in capital 104,578,000
Other comprehensive income (261,528,000)
Retained earnings: filing date (1,551,296,000)
---------------
Total prepetition owners' equity (1,199,923,000)
Retained earnings: post-filing date 852,983,000
---------------
Total owners' equity (net worth) (346,940,000)
---------------
Total liabilities and owners' equity $2,104,659,000
===============
ASARCO LLC, et al.
Consolidated Statement of Operations
Month Ended November 30, 2007
Sales $155,479,000
Cost of products and services 89,341,000
---------------
Gross profit 66,138,000
Operating expenses:
Selling and general & admin expenses 3,507,000
Depreciation & amortization 2,919,000
Provision accretion expense of asset
retirement obligation 163,000
---------------
Operating income 59,548,000
Interest expense 0
Interest income (6,677,000)
Reorganization expenses 5,770,000
Other miscellaneous (income) expenses (6,056,000)
---------------
Income (loss) before taxes 66,512,000
Income taxes 25,858,000
---------------
Net income (loss) $40,654,000
===============
ASARCO LLC, et al.
Consolidated Cash Receipts & Disbursements
Month Ended November 30, 2007
Receipts $214,803,000
Disbursements:
Inventory material 83,807,000
Operating disbursements 63,694,000
Capital expenditures 10,077,000
---------------
Total disbursements 157,577,000
Operating cash flow 57,226,000
Reorganization disbursements 6,787,000
---------------
Net cash flow 50,439,000
Net payments to secured Lenders 0
---------------
Net change in cash 50,439,000
Beginning cash balance 899,269,000
---------------
Ending cash balances $949,708,000
===============
Based in Tucson, Arizona, ASARCO LLC -- http://www.asarco.com/
-- is an integrated copper mining, smelting and refining company.
Grupo Mexico S.A. de C.V. is ASARCO's ultimate parent. The
Company filed for chapter 11 protection on Aug. 9, 2005 (Bankr.
S.D. Tex. Case No. 05-21207). James R. Prince, Esq., Jack L.
Kinzie, Esq., and Eric A. Soderlund, Esq., at Baker Botts L.L.P.,
and Nathaniel Peter Holzer, Esq., Shelby A. Jordan, Esq., and
Harlin C. Womble, Esq., at Jordan, Hyden, Womble & Culbreth, P.C.,
represent the Debtor in its restructuring efforts. Lehman
Brothers Inc. provides the ASARCO with financial advisory services
And investment banking services. Paul M. Singer, Esq., James C.
McCarroll, Esq., and Derek J. Baker, Esq., at Reed Smith LLP give
legal advice to the Official Committee of Unsecured Creditors and
David J. Beckman at FTI Consulting, Inc., gives financial advisory
services to the Committee. When the Debtor filed for protection
from its creditors, it listed $600 million in total assets and $1
billion in total debts.
The Debtor has five affiliates that filed for chapter 11
protection on April 11, 2005 (Bankr. S.D. Tex. Case Nos. 05-20521
through 05-20525). They are Lac d'Amiante Du Quebec Ltee, CAPCO
Pipe Company, Inc., Cement Asbestos Products Company, Lake
Asbestos of Quebec, Ltd., and LAQ Canada, Ltd. Details about
their asbestos-driven chapter 11 filings have appeared in the
Troubled Company Reporter since Apr. 18, 2005.
Encycle/Texas, Inc. (Bankr. S.D. Tex. Case No. 05-21304), Encycle,
Inc., and ASARCO Consulting, Inc. (Bankr. S.D. Tex. Case No. 05-
21346) also filed for chapter 11 protection, and ASARCO has asked
that the three subsidiary cases be jointly administered with its
chapter 11 case. On Oct. 24, 2005, Encycle/Texas' case was
converted to a Chapter 7 liquidation proceeding. The Court
appointed Michael Boudloche as Encycle/Texas, Inc.'s Chapter 7
Trustee. Michael B. Schmidt, Esq., and John Vardeman, Esq., at
Law Offices of Michael B. Schmidt represent the Chapter 7 Trustee.
ASARCO's affiliates, AR Sacaton LLC, Southern Peru Holdings LLC,
and ASARCO Exploration Company Inc., filed for chapter 11
protection on Dec. 12, 2006 (Bankr. S.D. Tex. Case No. 06-20774 to
06-20776).
The Debtors' exclusive period to file a plan expires on Feb. 11,
2008. (ASARCO Bankruptcy News, Issue No. 62; Bankruptcy
Creditors' Service, Inc., http://bankrupt.com/newsstand/or
215/945-7000).
DANA CORP: Incurs $29,000,000 Net Loss in Month Ended November 30
-----------------------------------------------------------------
Dana Corp. and its debtor-affiliates submitted to the U.S.
Bankruptcy Court for the Southern District of New York their
monthly operating report for November 2007, disclosing:
Dana Corporation
Unaudited Condensed Balance Sheet
At November 30, 2007
ASSETS
CURRENT ASSETS
Cash and cash equivalent assets $1,174,000,000
Accounts receivable
Trade 1,407,000,000
Other 293,000,000
Inventories 832,000,000
Assets of discontinued operations 41,000,000
Other current assets 154,000,000
--------------
Total current assets 3,901,000,000
Investments and other assets 0
Investments in equity affiliates 430,000,000
Net property, plant and equipment 1,752,000,000
Other noncurrent assets 1,048,000,000
--------------
TOTAL ASSETS $7,131,000,000
==============
LIABILITY AND SHAREHOLDERS' EQUITY
CURRENT LIABILITIES
DIP Financing $900,000,000
Notes payable, including current portion
of long-term debt 177,000,000
Accounts payable 1,115,000,000
Liabilities of discontinued operations 18,000,000
Other accrued liabilities 847,000,000
--------------
Total current liabilities 3,057,000,000
Liabilities subject to compromise 4,009,000,000
Deferred employee benefits and other
non-current liabilities 487,000,000
Long-term debt 13,000,000
Minority interest in consolidated subsidiaries
99,000,000
Total liabilities 7,665,000,000
Shareholders' equity (534,000,000)
--------------
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY $7,131,000,000
==============
Dana Corporation
Unaudited Condensed Statement of Operations
For the Month Ended November 30, 2007
Net Sales $778,000,000
Costs and expenses
Costs of sales 745,000,000
Selling, general and administrative expenses 22,000,000
Realignment charges 5,000,000
Other income, net 6,000,000
--------------
Income from operations 12,000,000
Interest expense 10,000,000
Reorganization charges 8,000,000
--------------
Loss before income taxes (6,000,000)
Income tax (expense) benefit 9,000,000
Minority interest 2,000,000
Equity in earnings of affiliates 0
--------------
Loss before continuing operations (17,000,000)
Loss from discontinued operations (12,000,000)
--------------
Net loss ($29,000,000)
==============
Dana Corporation
Unaudited Condensed Statement of Cash Flow
For the Month Ended November 30, 2007
OPERATING ACTIVITIES
Net loss ($29,000,000)
Depreciation and amortization 24,000,000
Loss on sale of business 0
Non-cash portion of U.K. pension charge 0
Increase in working capital (19,000,000)
Unremitted equity earnings in affiliates 3,000,000
Other 26,000,000
--------------
Net cash flow provided by
(used for) operating activities 5,000,000
--------------
INVESTING ACTIVITIES
Purchases of property, plant and equipment (24,000,000)
Proceeds from sale of assets 0
Other 0
Net cash flow provided by
(used for) operating activities (24,000,000)
--------------
FINANCING ACTIVITIES
Net change in short-term debt 11,000,000
Proceeds from DIP facility 0
--------------
Net cash flow provided by
(used for) financing activities 11,000,000
Net increase (decrease) in cash equivalents (8,000,000)
Cash and cash equivalents, beginning of period 1,182,000,000
--------------
Cash and cash equivalents, end of period $1,174,000,000
==============
Based in Toledo, Ohio, Dana Corporation -- http://www.dana.com/--
designs and manufactures products for every major vehicle producer
in the world, and supplies drivetrain, chassis, structural, and
engine technologies to those companies. Dana employs 46,000
people in 28 countries. Dana is focused on being an essential
partner to automotive, commercial, and off-highway vehicle
customers, which collectively produce more than 60 million
vehicles annually.
Dana has facilities in China in the Asia-Pacific, Argentina in
the Latin-American regions and Italy in Europe.
The company and its affiliates filed for chapter 11 protection
on March 3, 2006 (Bankr. S.D.N.Y. Case No. 06-10354). As of
Aug. 31, 2007, the Debtors listed $6,878,000,000 in total assets
and $7,551,000,000 in total debts resulting in a total
shareholders' deficit of $673,000,000.
Corinne Ball, Esq., and Richard H. Engman, Esq., at Jones Day,
in Manhattan and Heather Lennox, Esq., Jeffrey B. Ellman, Esq.,
Carl E. Black, Esq., and Ryan T. Routh, Esq., at Jones Day in
Cleveland, Ohio, represent the Debtors. Henry S. Miller at
Miller Buckfire & Co., LLC, serves as the Debtors' financial
advisor and investment banker. Ted Stenger from AlixPartners
serves as Dana's Chief Restructuring Officer.
Thomas Moers Mayer, Esq., at Kramer Levin Naftalis & Frankel
LLP, represents the Official Committee of Unsecured Creditors.
Fried, Frank, Harris, Shriver & Jacobson, LLP serves as counsel
to the Official Committee of Equity Security Holders. Stahl
Cowen Crowley, LLC serves as counsel to the Official Committee
of Non-Union Retirees.
The Debtors filed their Joint Plan of Reorganization on Aug. 31,
2007. On Oct. 23, 2007, the Court approved the adequacy of the
Disclosure Statement explaining their Plan. The Court confirmed
the Debtor's Plan on Dec. 26, 2007. (Dana Corporation Bankruptcy
News, Issue No. 67; Bankruptcy Creditors' Service Inc.,
http://bankrupt.com/newsstand/or 215/945-7000).
DELPHI CORP: Incurs $231 Million Net Loss in Month Ended Nov. 30
----------------------------------------------------------------
Delphi Corporation, et al.
Unaudited Consolidated Balance Sheet
As of November 30, 2007
(In Millions)
ASSETS
Current assets:
Cash and cash equivalents $13
Restricted cash 124
Accounts receivable, net:
General Motors and affiliates 1,482
Other third parties 949
Non-Debtor affiliates 232
Notes receivable from non-Debtor affiliates 286
Inventories, net:
Productive material, work-in-process & supplies 794
Finished goods 215
Other current assets 357
--------
TOTAL CURRENT ASSETS 4,452
Long-term assets:
Property, net 1,756
Investment in affiliates 380
Investments in non-Debtor affiliates 4,046
Goodwill 152
Other intangible assets 25
Other 534
--------
TOTAL LONG-TERM ASSETS 6,893
--------
TOTAL ASSETS $11,345
========
LIABILITIES AND STOCKHOLDERS' DEFICIT
Current liabilities not subject to compromise:
Debtor-in-possession financing $3,301
Accounts payable 1,279
Accounts payable to non-Debtor affiliates 525
Accrued liabilities 1,362
Notes payable to non-Debtor affiliates 66
--------
TOTAL CURRENT LIABILITIES 6,533
Long-term liabilities not subject to compromise:
Employee benefit plan obligations and other 1,143
Liabilities subject to compromise 17,008
--------
TOTAL LIABILITIES 24,684
Stockholders' deficit:
TOTAL STOCKHOLDERS' DEFICIT (13,339)
--------
TOTAL LIABILITIES AND STOCKHOLDERS' DEFICIT $11,345
========
Delphi Corporation, et al.
Unaudited Consolidated Statement of Operations
Month Ended November 30, 2007
(In Millions)
Net sales:
General Motors and affiliates $660
Other customers 431
Non-Debtor affiliates 54
--------
Total net sales 1,145
--------
Operating expenses:
Cost of sales 1,023
U.S. employee workforce transition program charges 41
Long-lived asset impairment charges -
Depreciation and amortization 46
Selling, general and administrative 85
Securities & ERISA litigation charge -
--------
Total operating expenses 1,195
--------
Operating loss (50)
Interest expense (41)
Loss on extinguishment of debt (4)
Other (expense) income, net 12
--------
Loss before reorganization items, income
tax expense, and equity income (83)
Reorganization items (13)
Income tax benefit (expense) (1)
Equity income from non-consolidated affiliates 4
Equity income from non-Debtor affiliates (138)
--------
NET LOSS ($231)
========
Delphi Corporation, et al.
Unaudited Consolidated Statement of Cash Flows
Month Ended November 30, 2007
(In Millions)
Cash flows from operating activities:
Net loss ($231)
Adjustments to reconcile net loss
to net cash provided by operating activities:
Depreciation and amortization 46
Deferred income taxes (1)
Pension and other postretirement benefit expenses 68
Equity income from unconsolidated affiliates (4)
Equity income from non-Debtor affiliates 138
Reorganization items 13
U.S. employee workforce transition program charges 41
Loss on extinguishment of debt 4
Changes in operating assets and liabilities:
Accounts receivable, net 55
Inventories, net 69
Other assets 3
Accounts payable, accrued and other long-term debt (138)
Other 17
U.S. employee workforce transition program payments (37)
Other postretirement benefit payments (20)
Pension contributions (2)
Payments for reorganization items (14)
--------
Net cash used in operating activities 7
Cash flows from investing activities:
Capital expenditures (37)
Proceeds from divestitures 20
Increase in restricted cash 2
--------
Net cash used in investing activities (15)
Cash flows from financing activities:
Net proceeds from DIP facility 22
Repayments on borrowings from non-Debtor affiliates (1)
--------
Net cash used in financing activities 21
--------
Decrease in cash and cash equivalents 13
Cash and cash equivalents at beginning of period -
--------
Cash and cash equivalents at end of period $13
========
* * *
Reuters notes that Delphi's net loss of $231,000,000 for November
has pushed the company's loss through the first 11 months of 2007
to $2,782,000,000.
Reuters also notes that sales to General Motors Corp., Delphi's
former parent, totaling $660,000,000, accounted for 58% of the
auto-parts supplier's net revenues for November. According to
Delphi's Monthly Operating Report, sales to General Motors and
its affiliates accounted for $8,298,000,000 out of the company's
net sales of $14,351,000,000 from January through November.
Crain's Detroit Business says Delphi ranks second on the
Automotive News list of the top 100 global suppliers with
original equipment automotive parts sales of $24,400,000,000 in
2006.
About Delphi Corporation
Headquartered in Troy, Michigan, Delphi Corporation (OTC: DPHIQ)
-- http://www.delphi.com/-- is the single supplier of vehicle
electronics, transportation components, integrated systems and
modules, and other electronic technology. The company's
technology and products are present in more than 75 million
vehicles on the road worldwide. Delphi has regional headquarters
in Japan, Brazil and France.
The company filed for chapter 11 protection on Oct. 8, 2005
(Bankr. S.D.N.Y. Lead Case No. 05-44481). John Wm. Butler Jr.,
Esq., John K. Lyons, Esq., and Ron E. Meisler, Esq., at Skadden,
Arps, Slate, Meagher & Flom LLP, represent the Debtors in their
restructuring efforts. Robert J. Rosenberg, Esq., Mitchell A.
Seider, Esq., and Mark A. Broude, Esq., at Latham & Watkins LLP,
represents the Official Committee of Unsecured Creditors. As of
March 31, 2007, the Debtors' balance sheet showed $11,446,000,000
in total assets and $23,851,000,000 in total debts.
On Sept. 6, 2007, the Debtors filed their chapter 11 plan of
reorganization and a disclosure statement explaining that plan.
They submitted an amended reorganization plan and disclosure
statement on Dec. 10, 2007. The Debtors' exclusive plan-filing
period expires on March 31, 2008. The Court has scheduled a
confirmation hearing on Jan. 17, 2008. (Delphi Bankruptcy News,
Issue No. 104; Bankruptcy Creditors' Service Inc.,
http://bankrupt.com/newsstand/or 215/945-7000)
DUNMORE HOMES: Files Schedules of Assets and Liabilities
--------------------------------------------------------
Dunmore Homes Inc. submitted to the United States Bankruptcy Court
for the Southern District of New York its schedules of assets and
liabilities, disclosing:
A. Real Property
Lots 259, 260, 261 of Natomas Central Subd. $4,357,530
B. Personal Property
B.1 Cash on Hand 200
B.2 Bank Accounts
Guaranty Bank - CD 350,000
Umpqua Bank 110,708
Guaranty Bank 7,684
B.3 Security Deposits
Rent deposit - 8781 Sierra College LLC 51,627
Rent deposit - Fresno Hemdon Investors LLC 8,500
Workers Comp Deposit 11,763
B.12 Interests in pension plans, 401(k) Plan
Deferred Compensation Funds 1,410,579
Money Market Funds 274,730
B.14 Interests in partnerships or joint ventures
Premier Lending Services LP 13,382
B.16 Accounts Receivable
Notes receivable - Sidney Dunmore 11,199,042
Dunmore Land Company 350,749
B.21 Other Contingent and Unliquidated Claims
Potential refund from FTB-2003 return 60,016
B&D Plumbing, Inc. 50,146
IM Construction, Inc. 18,399
VC Concrete 12,921
Production Framing Systems 6,786
Quality Door and Trim 6,217
Wilmore and Sons Plumbing 5,934
Sherman Loehr Custom Tile Works 5,564
Timberlake Cabinet Co. 4,811
Creative Touch Interiors - Roseville 3,214
Simas Floor Company, Inc. 2,618
Others 43,163
B.25 Vehicles
2005 Chevy Silverado 10,000
2003 GMC Envoy 5,000
2001 Chevy van 3,000
2001 Chevy van 3,000
B.28 Office Equipment
Office furnishings 52,937
Computer hardware 19,172
Office equipment 15,094
B.29 Machinery, fixtures, equipment for Business 3,657
B.35 Other Personal Property
Cordano Parcel Option to Acquire 815,000
Potential insurance recoveries - Cooper 700,000
Potential insurance recoveries - RAM/MTN 750,000
TOTAL SCHEDULED ASSETS $20,743,147
=========================================================
C. Property Claimed 0
D. Creditors Holding Secured Claims
Sacramento Valley Farm Credit $1,529,567
Travelers Bond 9,147,084
E. Creditors Holding Unsecured Priority Claims
Sacramento County Tax Collector 184,056
Placer County Tax Collector 11,551
Franchhise Tax Bard 9,063
Fresno County Tax Collector 3,484
F. Creditors Holding Unsecured Non-priority Claims
RBC Builder Finance 40,010,499
Guaranty Bank 38,277,001
Key Bank 36,140,131
Wachovia Bank, N.A. 20,544,317
Bank of New York 20,000,000
Comerica Bank 19,569,954
Affinity Bank 17,054,943
Franklin Bank 10,637,173
Indymac Bank F.S.B. 8,524,813
United Commercial Bank 6,367,814
Cal Sierra Construction, Inc. 4,158,269
JMP Securities 2,000,000
MacKay & Somps - Sacramento 1,745,804
Telchert Construction 737,859
Cooper White & Cooper LLP 403,888
SGN Nelson Construction 393,390
Hemington Landscape Service 390,043
Valley Utility Services Inc. 368,055
B&D Plumbing, Inc. 324,500
Slaughter, John 317,715
Beutler Corp. 275,692
Old Country Roofing Inc. 241,989
Dennis Blazona Construction, Inc. 213,483
Timberlake Cabinet Company 206,540
Doorway Mfg. Co. 206,179
Wetland and Erosion Technologies 204,000
Gibson, Michelle 198,587
Premier Indemnity Company 192,525
Simas Floor Company 192,480
Placer Lumber 192,173
Emerald Drywall 174,905
Sherman Loehr Custom Tile Works 173,989
CVC Construciton 172,325
G. Glenn Plastering 167,801
Lutz, Michael 167,980
Ingram, Thomas 155,280
Creative Touch Interiors - Fresno 140,612
Terrence E. Lowell and Associates 136,935
Creative Touch Interiors - Roseville 134,734
KTGY Group, Inc. 134,586
Sacramento Bee 128,405
Energetic Paint & Drywall 128,124
Power Factor Electric 126,908
Lupton Excavation, Inc. 121,536
Golden State Custom Framing, Inc. 121,404
H&M Roofing 119,338
GE Appliances 118,202
I and J Builder 107,738
McDonough, Holland & Allen 108,558
Vemon, Dennis 107,888
NorCal Environmental Corporation 105,330
Air Design, Inc. 100,805
Pedro's Drywall, Inc. 98,020
Morgan Miller Blair 96,568
Virtue Masonry 96,241
Design Masonry 95,741
MacKay & Somps - Roseville 92,598
Executive Cleaning Corp. 82,450
Parker Landscape Development, Inc. 81,767
Blazona Concrete Construction 81,320
Motivational Systems, Inc. 77,910
Pacific Park Landscaping 70,108
Sierra Pacific Lath and Plaster 70,975
Downey Plumbing 61,770
Edwards Plastering 66,164
Riddio Construction 61,666
Others 5,254,052
TOTAL SCHEDULED LIABILITIES $250,252,312
=========================================================
Headquartered in Granite Bay, California, Dunmore Homes Inc. is a
privately-owned homebuilder. The company filed for Chapter 11
protection on Nov. 8, 2007 (Bankr. S.D.N.Y. Case No. 07-13533).
Maria A. Bove, Esq., and Debra I. Grassgreen, Esq., at Pachulski
Stang Ziehl & Jones LLP, represent the Debtor in its restructuring
efforts. The Official Committee of Unsecured Creditors has
selected Morrison & Foerster LLP as its counsel in this bankruptcy
proceeding. When the Debtor filed for protection against its
creditors, it listed assets and liabilities of more than
$100 million.
The Debtor's exclusive period to file a plan expires on March 7,
2008. (Dunmore Bankruptcy News, Issue No. 7; Bankruptcy
Creditors' Service, Inc., http://bankrupt.com/newsstand/or
215/945-7000).
HANCOCK FABRICS: Posts $17,000 Net Loss in Month Ended December 1
-----------------------------------------------------------------
Hancock Fabrics Inc. and Subsidiaries
Consolidated Balance Sheet
As of December 1, 2007
ASSETS
Current assets:
Cash and cash equivalents $3,366,000
Receivables less allowance for
doubtful accounts 6,584,000
Inventories 85,039,000
Income taxes refundable 8,235,000
Prepaid expenses 1,766,000
------------
Total current assets 104,990,000
Property and equipment 43,330,000
Other assets 14,957,000
------------
Total Assets $163,277,000
============
LIABILITIES AND SHAREHOLDERS' EQUITY
Liabilities not subject to compromise
Accounts payable $20,435,000
Credit facility; DIP financing 18,706,000
Accrued liabilities 9,820,000
Deferred tax liabilities 6,273,000
Liabilities subject to compromise
Accounts payable 28,345,000
Accrued liabilities 10,932,000
Long-term lease financing obligations 1,676,000
Capital lease obligations 1,701,000
Postretirement benefits other than pensions 9,588,000
Pension and SERP liabilities 8,074,000
Other liabilities 9,098,000
------------
Total Liabilities 125,648,000
Total Shareholders Equity 37,629,000
------------
Total liabilities and shareholders' equity $163,277,000
============
Hancock Fabrics Inc. and Subsidiaries
Consolidated Statement of Operations
For the Month Ended December 1, 2007
Sales $27,065,000
Cost of goods sold 15,705,000
------------
Gross profit 11,360,000
Selling general & admin expense 9,720,000
Depreciation and amortization 292,000
------------
Operating income (loss) 1,348,000
Reorganization expenses 1,050,000
Interest expense net 315,000
------------
Earnings (loss) before income taxes (17,000)
Income taxes 0
------------
Net earnings (loss) ($17,000)
============
Hancock Fabrics Inc. and Subsidiaries
Consolidated Statement of Cash Flow
For the Month Ended December 1, 2007
Cash flows from operating activities:
Net earnings ($17,000)
Adjustments to reconcile net
earnings to cash flows used in
operating activities
Depreciation and amortization 519,000
Amortization of deferred loan costs 99,000
LIFO charge (credit) (277,000)
Reserve for store closings credits 514,000
Reserve for obsolete inventory 0
Reserve for sales returns and bad debts 0
Stepped rent accrual 0
Loss on disposition of property
and equipment 77,000
Gain on disposition of lease
financing obligations 0
Stock compensation expense 74,000
(Increase) decrease in assets
Receivables and prepaid expenses (52,000)
Inventory at current cost 2,799,000
Income tax refundable 0
Other non-current assets (12,000)
Increase (decrease) in liabilities
Accounts payable (1,785,000)
Accrued liabilities (552,000)
Postretirement benefits other than pensions (42,000)
Long-term pension and SERP liabilities 156,000
Reserve for store closings 8,000
Other liabilities (4,000)
------------
Net cash used in operating activities (477,000)
Cash flows from investing activities:
Additions to property and equipment (63,000)
Proceeds from the disposition of property
and equipment 1,000
------------
Net cash used in investing activities (62,000)
Cash flows from financing activities:
Net borrowings on revolving credit agreement (827,000)
Payments for lease financing (1,000)
Payments for capital leases (4,000)
Payments for loan costs 0
Purchase of treasury stock 0
Tax obligation settled with treasury stock 0
------------
Net cash provided by financing activities (832,000)
------------
Decrease in cash and cash equivalents (417,000)
Cash beginning of period 3,783,000
------------
Cash end of period $3,366,000
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Headquartered in Baldwyn, Mississippi, Hancock Fabrics Inc.
(OTC: HKFIQ) -- http://www.hancockfabrics.com/-- is a specialty
retailer of a wide selection of fashion and home decorating
textiles, sewing accessories, needlecraft supplies and sewing
machines. Hancock Fabrics is one of the largest fabric retailers
in the United States, currently operating approximately 400 retail
stores in approximately 40 states. The company employs
approximately 7,500 people on a full-time and part-time