Attached files
| file | filename |
|---|---|
| 8-K - 8-K - NBC ACQUISITION CORP | d310168d8k.htm |
Exhibit 99.1
UNITED STATES BANKRUPTCY COURT
FOR THE DISTRICT OF DELAWARE
In re: Nebraska Book Company, Inc., et al.
| Case No. (Jointly Administered) | 11-12005(PJW) | |||
| Reporting Period: | January 1 – January 31, 2012 | |||
| Federal Tax I.D. # | 47-0549819 |
CORPORATE MONTHLY OPERATING REPORT
File with the Court and submit a copy to the United States Trustee within 30 days after the end of the month and submit a copy of the report to any official committee appointed in the case.
| DOCUMENTS |
Form No. |
Document Attached |
Explanation Attached | |||
| Schedule of Disbursements |
MOR-1a | x | ||||
| Bank Account Information |
MOR-1b | x | x | |||
| Statement of Operations (Income Statement) |
MOR-2 | x | ||||
| Balance Sheet |
MOR-3 | x | ||||
| Status of Post-petition Taxes |
MOR-4 | x | ||||
| Accounts Receivable Reconciliation and Aging |
MOR-5 | x | ||||
| Payments to Professionals |
MOR-6 | x | ||||
| Debtor Questionnaire |
MOR-7 | x | ||||
I declare under penalty of perjury (28 U.S.C. Section 1746) that this report and the attached documents are true and correct to the best of my knowledge and belief.
| Alexi A. Wellman |
February 29, 2012 | |||
| Signature of Authorized Individual* | Date | |||
| Alexi A. Wellman |
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| Printed Name of Authorized Individual | ||||
| Chief Financial Officer |
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| Title | ||||
| * | 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 |
Nebraska Book Company, Inc., et al.
MOR1a
Disbursements
January 2012
| Company Name |
Case Number | Federal ID Number | Amount | |||||||||
| NBC Holdings Corporation |
11-12006 | 75-3147477 | $ | — | ||||||||
| NBC Acquisition Corporation |
11-12008 | 47-0793347 | — | |||||||||
| Nebraska Book Company, Inc. |
11-12005 | 47-0549819 | 36,083,708 | |||||||||
| Specialty Books, Inc. |
11-12007 | 75-3044807 | 7 | |||||||||
| NBC Textbooks, LLC |
11-12004 | 20-1831425 | 4,878,339 | |||||||||
| College Bookstores of America, Inc. |
11-12009 | 36-3309518 | 13,191,785 | |||||||||
| Campus Authentic, LLC |
11-12003 | 90-0439156 | — | |||||||||
| Net Textstore, LLC |
11-12002 | 14-1996469 | 170,000 | |||||||||
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| Total |
$ | 54,323,839 | ||||||||||
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The disbursement information is based on the company’s books and records that are maintained and prepared under Generally Accepted Accounting Principles (“GAAP”). The information has not been audited.
Nebraska Book Company, Inc., et al.
MOR1b
Account Balances
January 2012
| Last 4 digits of Account Number |
Book Balance January 31, 2012 |
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| Main Corporate Accounts |
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| 7107 |
$ | 82,501,659 | ||
| 3259 |
2,680,559 | |||
| 0248 |
350,000 | |||
| 5099 |
427,901 | |||
| 9988 |
1,033 | |||
| 7131 |
(2,113 | ) | ||
| 8027 |
(7,297 | ) | ||
| 7107 |
(2,735,511 | ) | ||
| Change Fund |
1,647,017 | |||
| Aggregate individual bookstore accounts |
9,275,092 | (1) | ||
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| $ | 94,138,340 | |||
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| (1) | Individual bookstore accounts are swept periodically into the corporate account. |
February 29, 2012
Office of the United States Trustee
Subject: January Monthly Operating Report Attestation Regarding Bank Account Reconciliations
The Debtor, Nebraska Book Company, Inc. and its affiliated Debtors, hereby submits this attestation regarding bank account reconciliations in lieu of providing copies of bank statements and copies of all account reconciliations.
The Debtor has, on a timely basis, performed all bank account reconciliations in the ordinary course of its business. Copies of bank account statements and reconciliations are available for inspection upon request by the United States Trustee’s Office.
| /s/ Alexi A. Wellman |
| Name: Alexi A. Wellman |
| Position: Chief Financial Officer |
| Sworn to and Subscribed |
| before me on this 29th |
| day of February, 2012 |
| /s/ Mary A. Lockard |
| Notary Public |
| My Commission Expires: March 5, 2013 |
Nebraska Book Company, Inc., et al.
MOR 2
(DEBTOR IN POSSESSION AS OF JUNE 27, 2011)
CONSOLIDATED STATEMENTS OF OPERATIONS
FOR THE TEN MONTHS ENDED JANUARY 31, 2012
(UNAUDITED)
| CONSOLIDATED NBC ACQUIS CORP |
ELIMINATIONS | NBC ACQUISITION CORP |
NEBRASKA BOOK COMPANY, INC. |
NBC TEXTBOOKS, LLC |
NET TEXTSTORE, LLC |
COLLEGE BOOKSTORES OF AMERICA |
SPECIALTY BOOKS, INC. |
CAMPUS AUTHENTIC |
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| REVENUES, net of returns |
$ | 505,022,007 | A | $ | (38,358,855 | ) | — | $ | 281,367,516 | $ | 125,228,607 | $ | 8,941,582 | $ | 122,575,836 | $ | 5,100,857 | $ | 166,464 | |||||||||||||||||
| COSTS OF SALES (exclusive of depreciation shown below) |
311,926,606 | (38,384,317 | ) | — | 182,088,700 | 76,896,099 | 3,411,986 | 84,473,911 | 3,301,527 | 138,700 | ||||||||||||||||||||||||||
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| Gross profit |
193,095,401 | A | 25,462 | — | 99,278,816 | 48,332,508 | 5,529,596 | 38,101,925 | 1,799,330 | 27,764 | ||||||||||||||||||||||||||
| OPERATING EXPENSES: |
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| Selling, general and administrative |
149,912,197 | 25,462 | — | 104,697,286 | 14,640,498 | 3,168,796 | 26,135,100 | 1,220,394 | 24,661 | |||||||||||||||||||||||||||
| Depreciation |
6,644,993 | — | — | 5,111,075 | 587,749 | 10,030 | 913,055 | 23,084 | — | |||||||||||||||||||||||||||
| Amortization |
6,753,021 | — | — | 1,460,903 | 4,467,402 | — | 737,886 | 86,830 | — | |||||||||||||||||||||||||||
| Impairment |
122,638,927 | — | — | 106,726,035 | — | — | 15,912,892 | — | — | |||||||||||||||||||||||||||
| Stock-based compensation |
28,821 | — | — | 28,821 | — | — | — | — | — | |||||||||||||||||||||||||||
| Intercompany administrative charge |
— | — | — | (7,237,600 | ) | 3,017,100 | 156,000 | 3,957,000 | 107,500 | — | ||||||||||||||||||||||||||
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| 285,977,959 | 25,462 | — | 210,786,520 | 22,712,749 | 3,334,826 | 47,655,933 | 1,437,808 | 24,661 | ||||||||||||||||||||||||||||
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| INCOME (LOSS) FROM OPERATIONS |
(92,882,558 | ) | — | — | (111,507,704 | ) | 25,619,759 | 2,194,770 | (9,554,008 | ) | 361,522 | 3,103 | ||||||||||||||||||||||||
| OTHER EXPENSES (INCOME) |
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| Interest expense |
33,832,412 | — | 2,231,705 | 31,600,413 | 158 | 130 | — | 6 | — | |||||||||||||||||||||||||||
| Interest income |
(14,476 | ) | — | — | 2,835 | — | — | (16,670 | ) | (641 | ) | — | ||||||||||||||||||||||||
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| 33,817,936 | — | 2,231,705 | 31,603,248 | 158 | 130 | (16,670 | ) | (635 | ) | — | ||||||||||||||||||||||||||
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| INCOME (LOSS) BEFORE REORGANIZATION ITEMS AND INCOME TAXES |
(126,700,494 | ) | — | (2,231,705 | ) | (143,110,952 | ) | 25,619,601 | 2,194,640 | (9,537,338 | ) | 362,157 | 3,103 | |||||||||||||||||||||||
| REORGANIZATION ITEMS |
22,068,178 | — | — | 22,068,178 | — | — | — | — | — | |||||||||||||||||||||||||||
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| INCOME (LOSS) BEFORE INCOME TAXES |
(148,768,672 | ) | — | (2,231,705 | ) | (165,179,130 | ) | 25,619,601 | 2,194,640 | (9,537,338 | ) | 362,157 | 3,103 | |||||||||||||||||||||||
| INCOME TAX EXPENSE (BENEFIT) |
(27,076,000 | ) | — | (157,000 | ) | (34,472,000 | ) | 9,404,000 | 806,000 | (2,790,000 | ) | 133,000 | — | |||||||||||||||||||||||
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| NET INCOME (LOSS) |
$ | (121,692,672 | ) | $ | — | $ | (2,074,705 | ) | $ | (130,707,130 | ) | $ | 16,215,601 | $ | 1,388,640 | $ | (6,747,338 | ) | $ | 229,157 | $ | 3,103 | ||||||||||||||
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| A | Deferred rental revenue and gross profit as of January 31, 2012 are $16.5 million and $8.0 million, respectively. |
Nebraska Book Company, Inc., et al.
MOR 3
(DEBTOR IN POSSESSION AS OF JUNE 27, 2011)
CONSOLIDATED BALANCE SHEETS
JANUARY 31, 2012
| CONSOLIDATED ACQUIS CORP |
ELIMINATIONS | NBC CORP |
NEBRASKA BOOK COMPANY, INC. |
NBC TEXTBOOKS, LLC |
NET TEXTSTORE, LLC |
COLLEGE BOOKSTORES AMERICA |
SPECIALTY BOOKS, INC. |
CAMPUS AUTHENTIC |
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| ASSETS |
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| CURRENT ASSETS: |
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| Cash and cash equivalents |
$ | 94,138,340 | $ | — | $ | — | $ | 88,782,277 | $ | — | $ | — | $ | 5,352,428 | $ | 3,635 | $ | — | ||||||||||||||||||
| Intercompany receivable (payable) |
— | (26,260,749 | ) | 26,260,749 | (130,630,886 | ) | 171,304,713 | 4,787,908 | (43,045,774 | ) | (2,374,751 | ) | (41,210 | ) | ||||||||||||||||||||||
| Receivables, net |
101,697,176 | 42 | 37,954,372 | 31,311,463 | 321,065 | 31,520,738 | 576,178 | 13,318 | ||||||||||||||||||||||||||||
| Inventories |
136,577,863 | — | — | 76,299,555 | 17,952,943 | 2,774,715 | 37,626,363 | 1,924,287 | — | |||||||||||||||||||||||||||
| Recoverable income taxes |
3,248,463 | — | — | 3,248,463 | — | — | — | — | — | |||||||||||||||||||||||||||
| Deferred income taxes |
11,168,819 | — | (45,585 | ) | 3,977,404 | 5,351,000 | 131,000 | 1,729,000 | 26,000 | — | ||||||||||||||||||||||||||
| Prepaid expenses and other assets |
25,074,991 | — | — | 17,985,629 | 419,783 | — | 6,615,062 | 54,517 | — | |||||||||||||||||||||||||||
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| 371,905,652 | (26,260,749 | ) | 26,215,206 | 97,616,814 | 226,339,902 | 8,014,688 | 39,797,817 | 209,866 | (27,892 | ) | ||||||||||||||||||||||||||
| PROPERTY AND EQUIPMENT, net of depreciation & amortization |
37,449,086 | — | — | 32,282,499 | 706,974 | 132,354 | 4,014,768 | 312,491 | — | |||||||||||||||||||||||||||
| GOODWILL |
7,599,064 | — | — | 7,599,064 | — | — | — | — | — | |||||||||||||||||||||||||||
| IDENTIFIABLE INTANGIBLES, net of amortization |
106,823,529 | — | — | 39,118,199 | 64,593,805 | — | 1,896,740 | 1,214,785 | — | |||||||||||||||||||||||||||
| DEBT ISSUE COSTS, net of amortization |
419,175 | — | 297,970 | 121,205 | — | — | — | — | — | |||||||||||||||||||||||||||
| INVESTMENT IN SUBSIDIARIES |
— | (32,918,079 | ) | (118,372,858 | ) | 151,290,937 | — | — | — | — | — | |||||||||||||||||||||||||
| OTHER ASSETS |
1,580,081 | — | — | 1,436,106 | — | — | 143,975 | — | — | |||||||||||||||||||||||||||
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| $ | 525,776,587 | $ | (59,178,828 | ) | $ | (91,859,682 | ) | $ | 329,464,824 | $ | 291,640,681 | $ | 8,147,042 | $ | 45,853,300 | $ | 1,737,142 | $ | (27,892 | ) | ||||||||||||||||
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| LIABILITIES AND STOCKHOLDERS’ EQUITY (DEFICIT) |
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| CURRENT LIABILITIES: |
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| Accounts payable |
$ | 30,993,373 | $ | — | $ | — | $ | 18,806,663 | $ | 2,233,660 | $ | (189 | ) | $ | 9,638,698 | $ | 314,559 | $ | (18 | ) | ||||||||||||||||
| Accrued employee compensation and benefits |
7,965,611 | — | — | 5,664,275 | 1,334,623 | — | 930,674 | 36,039 | — | |||||||||||||||||||||||||||
| Accrued interest |
2,687,823 | — | — | 2,687,823 | — | — | — | — | — | |||||||||||||||||||||||||||
| Accrued incentives |
5,308,633 | — | — | 16,148 | 5,292,485 | — | — | — | — | |||||||||||||||||||||||||||
| Accrued expenses |
9,690,222 | — | — | 5,529,178 | 14,636 | — | 4,139,886 | 6,522 | — | |||||||||||||||||||||||||||
| Income taxes payable |
— | — | — | (93,902,813 | ) | 87,984,187 | 2,365,000 | 3,562,770 | (4,511 | ) | (4,633 | ) | ||||||||||||||||||||||||
| Deferred revenue |
18,905,157 | — | — | 15,115,670 | — | — | 3,789,487 | — | — | |||||||||||||||||||||||||||
| Current maturities of long-term debt |
101,662 | — | — | 101,662 | — | — | — | — | — | |||||||||||||||||||||||||||
| DIP term loan facility |
124,485,696 | — | — | 124,485,696 | — | — | — | — | — | |||||||||||||||||||||||||||
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| Total current liabilities |
200,138,177 | — | — | 78,504,302 | 96,859,591 | 2,364,811 | 22,061,515 | 352,609 | (4,651 | ) | ||||||||||||||||||||||||||
| LONG-TERM DEBT, net of current maturities |
67,356 | — | — | 67,356 | — | — | — | — | — | |||||||||||||||||||||||||||
| OTHER LONG-TERM LIABILITIES |
42,307 | — | — | 42,307 | — | — | — | — | — | |||||||||||||||||||||||||||
| DEFERRED INCOME TAXES |
17,195,157 | — | (10,292,472 | ) | 3,393,629 | 24,310,000 | 34,000 | (691,000 | ) | 441,000 | — | |||||||||||||||||||||||||
| LIABILITIES SUBJECT TO COMPROMISE |
469,290,965 | (26,260,749 | ) | 79,390,165 | 414,094,609 | 33,341 | 3,076 | 2,024,608 | 5,915 | — | ||||||||||||||||||||||||||
| COMMITMENTS |
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| REDEEMABLE PREFERRED STOCK |
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| Series A redeemable preferred stock, $.01 par value, 20,000 shares authorized, 10,000 shares outstanding at redemption value |
14,076,596 | — | 14,076,596 | — | — | — | — | — | ||||||||||||||||||||||||||||
| STOCKHOLDERS’ EQUITY (DEFICIT): |
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| Common stock, voting, authorized 5,000,000 shares of $.01 par value; |
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| 554,094 shares issued and outstanding |
5,541 | (100 | ) | 5,541 | 100 | — | — | — | — | — | ||||||||||||||||||||||||||
| Additional paid-in capital |
111,310,110 | (210,483,674 | ) | 111,310,110 | 148,396,625 | 59,817,667 | — | 346,232 | 1,923,150 | — | ||||||||||||||||||||||||||
| Note receivable from stockholder |
— | — | — | — | — | — | — | — | ||||||||||||||||||||||||||||
| Retained earnings (Accumulated deficit) |
(286,349,622 | ) | 177,565,695 | (286,349,622 | ) | (315,034,104 | ) | 110,620,082 | 5,745,155 | 22,111,945 | (985,532 | ) | (23,241 | ) | ||||||||||||||||||||||
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| Total stockholders’ equity (deficit) |
(175,033,971 | ) | (32,918,079 | ) | (175,033,971 | ) | (166,637,379 | ) | 170,437,749 | 5,745,155 | 22,458,177 | 937,618 | (23,241 | ) | ||||||||||||||||||||||
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| $ | 525,776,587 | $ | (59,178,828 | ) | $ | (91,859,682 | ) | $ | 329,464,824 | $ | 291,640,681 | $ | 8,147,042 | $ | 45,853,300 | $ | 1,737,142 | $ | (27,892 | ) | ||||||||||||||||
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February 29, 2012
Office of the United States Trustee
Subject: January Monthly Operating Report Attestation Regarding Post-petition Taxes
The Debtor, Nebraska Book Company, Inc. and its affiliated Debtors, hereby submit this attestation regarding post-petition taxes.
All post-petition taxes for the Debtors, which are not subject to dispute or reconciliation, are current. There are no material tax disputes or reconciliations.
| /s/ Alexi A. Wellman |
| Name: Alexi A. Wellman |
| Position: Chief Financial Officer |
| Sworn to and Subscribed |
| before me on this 29th |
| day of February, 2012 |
| /s/ Mary A. Lockard |
| Notary Public |
| My Commission Expires: March 5, 2013 |
Nebraska Book Company, Inc., et al.
MOR5
Accounts Reconciliation and Aging
January 2012
ACCOUNTS RECEIVABLE RECONCILIATION AND AGING (1)
| Accounts Receivable Reconciliation |
Amount | |||
| Total Accounts Receivable at the Beginning of the Reporting Period |
$ | 44,972,891 | ||
| Plus: Amounts billed during the period |
79,518,944 | |||
| Less: Amounts collected during the period |
(29,938,215 | ) | ||
| Less: Amounts written off or returned during the period |
(938,686 | ) | ||
| Less: Customer rebates applied against receivable |
(219,231 | ) | ||
| Plus (less): Miscellaneous Other |
121,935 | |||
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| Change in accounts receivable, net |
48,544,747 | |||
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| Total Accounts Receivable |
93,517,638 | |||
| Less: Allowance for uncollectible accounts |
(1,283,360 | ) | ||
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| Total Accounts Receivable,net at the End of the Reporting Period |
$ | 92,234,278 | ||
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| Accounts Receivable Aging |
1/31/2012 | |||
| 0-30 days old |
64,726,386 | |||
| 31-60 days old |
15,804,051 | |||
| 61-90 days old |
4,994,686 | |||
| Over 90 days old |
7,992,515 | |||
| Total Aged Accounts Receivable |
93,517,638 | |||
| Less: Allowance for uncollectible accounts |
(1,283,360 | ) | ||
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| Net Accounts Receivable |
$ | 92,234,278 | ||
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| (1) | “Accounts receivable” in the accompanying Balance Sheet under Form MOR-3 includes certain items which are not included in this table, including receivables for returns to publishers and buy funds receivable. |
Nebraska Book Company, Inc., et al.
MOR6
Payments to Professionals
January 2012
| Name |
Amount | |||
| Kurtzman Carson Consultants, LLC |
$ | 51,127 | ||
| Brown Rudnick LLP |
70,124 | |||
| Duff & Phelps |
76,745 | |||
| Young, Conaway, Stargatt & Taylor, LLP |
3,131 | |||
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| Total |
$ | 201,127 | ||
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In re: Nebraska Book Company, Inc., et al.
| Case No. (Jointly Administered) | 11-12005(PJW) | |||
| Reporting Period: | January 31, 2012 | |||
| MOR 7 | ||||
| Federal Tax I.D. # | 47-0549819 |
Debtor Questionnaire
| Must be completed each month. If the answer to any of the |
Yes | No | ||||
| 1 |
Have any assets been sold or transferred outside the normal course of business this reporting period? | X | ||||
| 2 |
Have any funds been disbursed from any account other than a debtor in possession account this reporting period? | X | ||||
| 3 |
Is the Debtor delinquent in the timely filing of any post-petition tax returns? | X | ||||
| 4 |
Are workers compensation, general liability or other necessary insurance coverages expired or cancelled, or has the debtor received notice of expiration or cancellation of such policies? | X | ||||
| 5 |
Is the Debtor delinquent in paying any insurance premium payment? | X | ||||
| 6 |
Have any payments been made on pre-petition liabilities this reporting period? | X | ||||
| 7 |
Are any post petition receivables (accounts, notes or loans) due from related parties? | X | ||||
| 8 |
Are any post petition payroll taxes past due? | X | ||||
| 9 |
Are any post petition State or Federal income taxes past due? | X | ||||
| 10 |
Are any post petition real estate taxes past due? | X | ||||
| 11 |
Are any other post petition taxes past due? | X | ||||
| 12 |
Have any pre-petition taxes been paid during this reporting period? | X | ||||
| 13 |
Are any amounts owed to post petition creditors delinquent? | X | ||||
| 14 |
Are any wage payments past due? | X | ||||
| 15 |
Have any post petition loans been received by the Debtor from any party? | X | ||||
| 16 |
Is the Debtor delinquent in paying any U.S. Trustee fees? | X | ||||
| 17 |
Is the Debtor delinquent with any court ordered payments to attorneys or other professionals? | X | ||||
| 18 |
Have the owners or shareholders received any compensation outside of the normal course of business? | X | ||||