Furniture Brands: 13-12329 Reporting Period

The following excerpt is from the company's SEC filing.

Required DocumentsFormNo.DocumentAttachedExplanationAttachedSchedule of Cash Receipts and DisbursementsMOR-1X Bank Account Information/ReconciliationMOR-1aXBank reconciliationstatementDetailed Operating Receipts and DisbursementsMOR-1bX Schedule of Professional Fees PaidMOR-1cNoAccrued, but none paidCopies of Bank Statements N/AXCash Disbursements Journals N/AXStatement of OperationsMOR-2X Balance SheetMOR-3X Status of Post-Petition TaxesMOR-4X Copies of IRS Form 6123 N/A Copies of Tax Returns Filed During Reporting Period N/A Summary of Unpaid Post-Petition DebtsMOR-5N/A Listing of Aged Accounts PayableMOR-5aX Accounts Receivable Reconciliation and AgingMOR-6X Debtor QuestionnaireMOR-7X 

I declare under penalty of perjury (28 U.S.C. Section 1746) that this report and the documents attached are true and correct to the best of my knowledge and belief.

(2) Authorized individual must be an officer, director or shareholder if debtor is a corporation; a partner if debtor is a partnership; a manager or member if debtor is a limited liability company.

This Monthly Operating Report ("MOR") has been prepared solely for the purpose of complying with the monthly reporting requirements applicable in the bankruptcy cases and is in a format acceptable to the U.S. Trustee. The financial information contained herein is unaudited, limited in scope and as discussed below, not prepared in accordance with accounting principles generally accepted in the United States of America ("U.S. GAAP").

All schedules within the October MOR report include activity for the entire fiscal month of October from 9/29/2013 to 10/26/2013 and represent fiscal month-end balances as of 10/26/2013, unless otherwise noted.

The unaudited consolidated financial statements have been derived from the books and records of Furniture Brands International, Inc. and related Debtors and Non-debtors ("FBN"). The information furnished in this report includes primarily normal recurring adjustments, but not all of the adjustments that would typically be made for the quarterly and annual financial statements to be in accordance with U.S. GAAP. Furthermore, the monthly financial information contained herein has not been subjected to the same level of accounting review and testing that Furniture Brands International, Inc. and related Debtors and Non-debtors apply in the preparation of their quarterly and annual financial information in accordance with U.S. GAAP. Accordingly, upon the application of such procedures, FBN believes that the financial information may be subject to change, and that these changes could be material.

The unaudited consolidated financial statements presented in MOR-2 and MOR-3 include elimination entries for intercompany balances related to non-debtor affiliates. Investment in subsidiary balances are recorded at cost which may not be in accordance with U.S. GAAP. Intercompany transactions between Debtors have been eliminated in the financial statements contained herein. The amounts currently classified as liabilities subject to compromise may be subject to future change as the Company completes its analysis of pre- and post-petition liabilities.

The results of operations contained herein are not necessarily indicative of results which may be expected from any other period or for the full year and may not necessarily reflect the consolidated results of operations, financial position and schedule of receipts and disbursements of FBN in the future. FBN cautions readers not to place undue reliance upon the MOR. There can be no assurance that such information is complete and the MOR may be subject to revision.

Cash receipts and disbursement amounts are derived based on information from the Debtors bank statements. Cash receipts and disbursements between Debtors are included in this schedule. Certain tax payments made by Furniture Brands International, Inc. on behalf of the Debtors are included in the amounts under Furniture Brands International, Inc.

Cash receipts and cash disbursements related to the Debtor-In-Possession financing have been excluded from the cash receipts and disbursement totals above unless otherwise noted.

(1) Cash receipts for 13-12329, 13-12332, 13-12340, 13-12341, 13-12343, 13-12344, 13-12351, and 13-12354. Cash disbursements for all FBN debtors (including employee payroll, benefits, and workers' compensation).

(2) Cash receipts include funding from KPS Capital Partners, LP on 10/22/13 for $8,000,000 per terms of DIP financing agreement.

All amounts listed above are the bank balances as of the end of the month. Copies of bank statements and cash disbursement journals are not included in this MOR. These items will be made available upon request.

The above-captioned debtors (the “Debtors”) hereby submit this attestation regarding bank account reconciliations in lieu of providing copies of bank statements.

The Debtors’ standard practice is to ensure that each bank account is reconciled to bank statements at least once per fiscal quarter within 45 days after the month end. I attest that each of the Debtors’ bank accounts is reconciled to bank statements in accordance with its practices.

Operating Receipts  Lane$17,586,733Broyhill 8,509,944Thomasville 13,810,362Other(1)  22,824,192Total operating receipts$62,731,231 Disbursements Materials$30,714,438 Payroll & benefits20,305,445 Rent/Lease payments1,920,477 Freight3,164,881 Professional/Transaction fees4,124,138 Operating OpEx(2)12,066,030 Non-operating OpEx(8,628,781)International operations  4,498,454Total disbursements$68,165,082 Net cash flow$(5,433,851)

Furniture Brands International, Inc. and related Debtors and Non-debtors Consolidated Statement of Operations (Unaudited)  Net Sales$62,253,701Cost of Sales45,250,380Gross Profit17,003,321As a percentage of net sales27.3 %  Sales, general and administrative expense18,899,663As a percentage of net sales30.4 %Earnings/(loss) from operations(1,896,342)As a percentage of net sales-3.0 %  Interest expense2,446,725  Other income/expense, net218,396  Reorganization items: Professional fees2,953,554Financing fees8,220,797Other reorganization expenses3,326,000Total reorganization items14,500,352  Pretax earnings/(loss)(18,625,022)As a percentage of net sales-29.9 %  Income tax expense163,000As a percentage of net sales-0.3 %  New earnings/(loss)$(18,788,022)As a percentage of net sales-30.2 %

This Monthly Operating Report ("MOR") has been prepared solely for the purpose of complying with the monthly reporting requirements applicable in the bankruptcy cases and is in a format acceptable to the U.S. Trustee. The financial information contained herein is unaudited, limited in scope and as discussed below, not prepared in accordance with accounting principles generally accepted in the United States of America ("U.S. GAAP").

The unaudited consolidated financial statements have been derived from the books and records of the Furniture Brands International, Inc. and related Debtors and Non-debtors ("FBN"). The information furnished in this report includes primarily normal recurring adjustments, but not all of the adjustments that would typically be made for the quarterly and annual financial statements to be in accordance with U.S. GAAP. Furthermore, the monthly financial information contained herein has not been subjected to the same level of accounting review and testing that Furniture Brands International, Inc. and related Debtors and Non-debtors apply in the preparation of their quarterly and annual financial information in accordance with U.S. GAAP. Accordingly, upon the application of such procedures, FBN believes that the financial information may be subject to change, and that these changes could be material.

The unaudited consolidated financial statements presented in MOR-2 and MOR-3 include elimination entries for intercompany balances related to non-debtor affiliates. Investment in subsidiary balances are recorded at cost which may not be in accordance with U.S. GAAP. Intercompany transactions between Debtors have been eliminated in the financial statements contained herein. The amounts currently classified as liabilities subject to compromise may be subject to future change as the Company completes its analysis of pre- and post-petition liabilities.

The results of operations contained herein are not necessarily indicative of results which may be expected from any other period or for the full year and may not necessarily reflect the consolidated results of operations, financial position and schedule of receipts and disbursements of FBN in the future. FBN cautions readers not to place undue reliance upon the MOR. There can be no assurance that such information is complete and the MOR may be subject to revision.

Furniture Brands International, Inc. and related Debtors and Non-debtors Consolidated Balance Sheet (Unaudited)  Assets: Cash and cash equivalents$10,191,264Gross trade receivables(1)103,421,233Other receivables12,356,299Allowance for doubtful accounts(14,286,059)Inventories220,400,901Prepaid expenses and other current assets16,286,229Total current assets348,369,868  Property, plant, and equipment, net83,770,553Trade names65,339,154Other assets36,946,769Total assets$534,426,344  Liabilities: Accounts payable(2)$35,666,635Accrued employee compensation10,825,700Other accrued expenses(3)26,720,480Total current liabilities73,212,814  Long-term debt163,784,157Deferred income taxes18,484,548Pension liability(4)2,619,691Other long-term liabilities(5)13,075,186Total liabilities not subject to compromise$271,176,396Liabilities subject to compromise330,560,876  Shareholders' Equity: Preferred stock$—Common stock8,659,249Paid-in capital242,834,322Retained earnings10,655,021Accumulated other comprehensive loss(230,670,338)Treasury stock(98,789,182)Total shareholders' equity$(67,310,928)  Total liabilities and shareholders' equity$534,426,344    Liabilities subject to compromise includes the following: Accounts Payable$77,894,025Lease liabilities7,265,340Accrued compensation and benefits2,505,644Pension and other post-retirement liabilities226,113,236Other liabilities16,782,630Total liabilities subject to compromise$330,560,876

This Monthly Operating Report ("MOR") has been prepared solely for the purpose of complying with the monthly reporting requirements applicable in the bankruptcy cases and is in a format acceptable to the U.S. Trustee. The financial information contained herein is unaudited, limited in scope and as discussed below, not prepared in accordance with accounting principles generally accepted in the United States of America ("U.S. GAAP").

The unaudited consolidated financial statements have been derived from the books and records of the Furniture Brands International, Inc. and related Debtors and Non-debtors ("FBN"). The information furnished in this report includes primarily normal recurring adjustments, but not all of the adjustments that would typically be made for the quarterly and annual financial statements to be in accordance with U.S. GAAP. Furthermore, the monthly financial information contained herein has not been subjected to the same level of accounting review and testing that Furniture Brands International, Inc. and related Debtors and Non- debtors apply in the preparation of their quarterly and annual financial information in accordance with U.S. GAAP. Accordingly, upon the application of such procedures, FBN believes that the financial information may be subject to change, and that these changes could be material.

The unaudited consolidated financial statements presented in MOR-2 and MOR-3 include elimination entries for intercompany balances related to non-debtor affiliates. Investment in subsidiary balances are recorded at cost which may not be in accordance with U.S. GAAP. Intercompany transactions between Debtors have been eliminated in the financial statements contained herein. The amounts currently classified as liabilities subject to compromise may be subject to future change as the Company completes its analysis of pre- and post-petition liabilities.

The results of operations contained herein are not necessarily indicative of results which may be expected from any other period or for the full year and may not necessarily reflect the consolidated results of operations, financial position and schedule of receipts and disbursements of FBN in the future. FBN cautions readers not to place undue reliance upon the MOR. There can be no assurance that such information is complete and the MOR may be subject to revision.

(2) Accounts payable can include multiple post-petition liabilities, such as trade payables, insurance, benefits, foreign non-debtor, and other liabilities. Included in accounts payable is $2,463,058 and $2,252,683 of payables related to foreign non-debtor entities and outstanding checks, respectively. There are no professional fees included in this figure.

(3) Other accrued expenses include accrued taxes (payroll, real property, personal property and income taxes), workers' compensation, healthcare expenses, professional and legal fees, advertising, royalties, promotional allowances and rent.

(5) Other long term liabilities is comprised of workers' compensation, a reserve straight line for straight line rent expense, tax liabilities, and other liabilities.

Debtor Entity Summary Trial Balances  (1)(2)(2) Legal EntityCase NumberTotal AssetsTotal LiabilitiesTotal EquityMonthly Net (Earnings)/LossFURNITURE BRANDS INTERNATIONAL, INC.43-0337683534,426,345601,737,274(67,310,929)18,788,022FURNITURE BRANDS RESOUCE COMPANY, INC.55-0821288334,166187,662146,504(37,905)FURNITURE BRANDS HOLDINGS, INC26-4532837(2,590,159)—(2,590,159)—FURNITURE BRANDS OPERATIONS, INC.36-46849088,059,6913,414,4614,645,230(47,681)BROYHILL FURNITURE IND, INC56-122321750,969,49217,266,11833,703,374917,918BROYHILL TRANSPORT, INC56-1411721————BROYHILL RETAIL, INC.76-0758843691,4311,185,931(494,500)227,346BROYHILL HOME FURNISHINGS, INC76-0758844263,213—263,213(99,918)LANE FURNITURE INDUSTRIES INC64-051506431,721,26838,546,510(6,825,242)(294,071)ACTION TRANSPORT, INC36-38875871,705,7141,691,12114,59278,312LANEVENTURE, INC.43-1908434————LANE HOME FURNISHINGS RETAIL, INC.43-17590852,857,3956,262,322(3,404,927)208,391THOMASVILLE FURNITURE IND, INC.56-0906574(6,118,480)31,428,748(37,547,228)2,064,600THOMASVILLE HOME FURNISHINGS, INC56-18731391,406,374—1,406,374(526,982)THOMASVILLE RETAIL, INC54-085617439,747,69822,984,24516,763,4531,884,629HDM FURNITURE INDUSTRIES, INC43-194748453,990,61317,815,97836,174,635(699,794)HDM RETAIL, INC56-172612510,017,3195,285,9814,731,338954,108HDM TRANSPORT, INC56-13243787,4064216,984—MAITLAND-SMITH FURNITURE IND., INC (US)43-194748610,873,355846,18410,027,171(129,513)

This Monthly Operating Report ("MOR") has been prepared solely for the purpose of complying with the monthly reporting requirements applicable in the bankruptcy cases and is in a format acceptable to the U.S. Trustee. The financial information contained herein is unaudited, limited in scope and as discussed below, not prepared in accordance with accounting principles generally accepted in the United States of America ("U.S. GAAP").

All schedules within the October MOR report include activity for the entire fiscal month of October from 9/29/2013 to 10/26/2013 and represent fiscal month-end balances as of 10/26/2013, unless otherwise noted.

The unaudited consolidated financial statements have been derived from the books and records of the Furniture Brands International, Inc. and related Debtors and Non-debtors ("FBN"). The information furnished in this report includes primarily normal recurring adjustments, but not all of the adjustments that would typically be made for the quarterly and annual financial statements to be in accordance with U.S. GAAP. Furthermore, the monthly financial information contained herein has not been subjected to the same level of accounting review and testing that Furniture Brands International, Inc. and related Debtors and Non-debtors apply in the preparation of their quarterly and annual financial information in accordance with U.S. GAAP. Accordingly, upon the application of such procedures, FBN believes that the financial information may be subject to change, and that these changes could be material.

The unaudited consolidated financial statements presented in MOR-2 and MOR-3 include elimination entries for intercompany balances related to non-debtor affiliates. Investment in subsidiary balances are recorded at cost which may not be in accordance with U.S. GAAP. Intercompany transactions between Debtors have been eliminated in the financial statements contained herein. The amounts currently classified as liabilities subject to compromise may be subject to future change as the Company completes its analysis of pre and post-petition liabilities.

The results of operations contained herein are not necessarily indicative of results which may be expected from any other period or for the full year and may not necessarily reflect the consolidated results of operations, financial position and schedule of receipts and disbursements of FBN in the future.  FBN cautions readers not to place undue reliance upon the MOR. There can be no assurance that such information is complete and the MOR may be subject to revision.

(2) All Intercompany balances are included within equity to remain consistent with the consolidated MOR presentation. Normally these balances are eliminated through consolidation.

Furniture Brands International, Inc. and related Debtors received authority which allowed the payment of certain pre-petition income, sales, use, franchise and property taxes and other taxes, assessments, fees and similar charges. The tax rollforward only reflects the payment of post-petition taxes. Due to the volume of transactions related to tax returns and payments, these items will be made available upon request.

Furniture Brands International, Inc. and related Debtors are current on all post-petition payments other than disputes that arise in the ordinary course of business.

Accounts Payable (Post-Petition) Balance as of 10/26/13 (Unaudited) (1)Accounts Payable Aging  0 - 30 days old —31 - 60 days old —61 - 90 days old —91+ days old —Total Accounts Payable (Post-Petition) $35,666,635      

Accounts Receivable (Post-Petition) Balance as of 10/26/13 (Unaudited) (2)Accounts Receivable Reconciliation   Total Accounts Receivable at the beginning of the reporting period  $97,869,194(+) Amounts billed during the period  69,432,812(-) Amounts collected during the period  (62,731,231)(-) Credits and allowances used/applied during the period(1)  (1,149,542)Total Accounts Receivable at the end of the reporting period  $103,421,233        Accounts Receivable Aging   0 - 30 days old(1)  $87,165,23031 - 60 days old  8,184,91461 - 90 days old  2,914,76691+ days old  5,156,322Total Accounts Receivable (Post-Petition)  $103,421,233    

Debtor Questionnaire  YesNo1.Have any assets been sold or transferred outside the normal course of business this reporting period? If yes, provide an explanation below. X2.Have any funds been disbursed from any account other than a debtor in possession account this reporting period? If yes, provide an explanation below. X3.Have all post-petition tax returns been timely filed? If no, provide an explanation below.X 4.Are workers' compensation, general liability and other necessary insurance coverages in effect? If no, provide an explanation below.X 5.Has any bank account been opened during the reporting period? If yes, provide documentation identifying the opened account(s). If an investment account has been opened provide the required documentation pursuant to the Delaware Local Rule 4001-3. X

The above information was disclosed in a filing to the SEC. To see this filing in its entirety, click here.

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