EX-99.1 3 g73054ex99-1.txt MONTHLY OPERATING REPORT Exhibit 99.1 OFFICE OF THE UNITED STATES TRUSTEE In re: DEBTOR IN POSSESSION INTERIM STATEMENT OUTSOURCE INTERNATIONAL, INC. Statement Number: 4 Debtor. For the Period FROM: October 1, 2001 Chapter 11 Case No.: LA 01-28173-BB TO: October 28, 2001 Annexed hereto is Interim Statement Number 4 for the above-indicated chapter 11 debtor ("Debtor"). At the Initial Debtor Interview held by the Office of the United States Trustee ("OUST"), on June 27, 2001, Debtor apprised the OUST that its books and records are maintained on a consolidated basis with the other six affiliated debtor entities which comprise the related filing entities. Therefore, and by agreement made with the Office of the United States Trustee, amounts reflected on the annexed Interim Statement represent consolidated cash receipts and disbursements for all of the bank accounts of the Debtor and its chapter 11 debtor affiliates ("Debtors"). Additionally, the amounts reflected on the six affiliated debtor entities represent, by type and amount, the allocable portion of the Debtor's receipts and disbursements for the reporting period. The allocable portion was calculated by multiplying the Debtors' aggregate cash receipts or disbursements by the ratio of this Debtor's net revenues divided by the aggregate net revenues for all the Debtors. Since Outsource International, Inc. has no operations of its own and is solely a holding company, the consolidated receipts and disbursements, for all six affiliated debtor entities are reflected on the Interim Statement filed concurrently herewith by OUTSOURCE INTERNATIONAL, INC., Case No. LA 01-28173-BB. Also, the disbursement amounts reflected on the annexed Interim Statement reflect only the checks issued by the Debtors, which cleared the banks during the reporting period, whereas the check registers reflect all checks issued by the Debtors during the reporting period. Outstanding checks represent the difference between the check registers and the disbursement totals reflected in the Interim Statement. OFFICE OF THE UNITED STATES TRUSTEE IN RE OUTSOURCE INTERNATIONAL, INC DEBTOR IN POSSESSION INTERIM STATEMENT STATEMENT NO. 4 CHAPTER 11 CASE NO. LA 01-28173 BB FOR THE PERIOD FROM: 10/1/01 TO: 10/28/01 CASH ACTIVITY ANALYSIS (Cash Basis Only) A. Total Receipts per all Prior Interim Statements $65,799,408 B. Less Total Disbursements per all Prior Statements $64,663,588 ----------- C. Beginning Balance (A less B) $ 1,135,820 D. Receipts during Current Period Opening Cash Balance Per Bank $ 100 Plus: Available LockBox Receipts $19,024,788 Plus: Non A/R Cash Receipts $ 75,000 ----------- E. Total Cash Available $20,235,709 ----------- F. Cash Disbursements/(Voids) Advertising (newspaper recruiting) 46,058 Auto Maintenance -- Bank Fees 1,095 Bankruptcy Expenses 44,500 BOA - Committee Accountant Acct. 5,000 BOA - Attn. Fees Creditor Acct. 40,000 BOA - Attn. Fees Debtor Acct. 150,000 Benefits (insurance) 106,736 Board of Directors -- Business License 35 Capital Expense -- Capital Leases 87,292 CIT - Adequate Protection Payment -- Core Payroll 1,173,458 CitiBank Credit Card Payment -- CSF Payroll & Payroll Tax 370,391 Deposits - Various Vendors -- Dues/ Subscriptions 422 Education 460 Equipment -- Expense Reports 176,979 Flex Spending Acct. -- FTB ACH Account -- Garnishments 60,974 Insurance -- IT 25,984 Cash Collateral for Letter of Credit -- Labor Supplies 39,673 Maintenance 22,735 Misc Vendor Prepaid -- Misc Expenses 81,989 Mortgage -- Office Supplies COD 67,779 Operating Leases 75,821 Outside Labor -- Payroll Taxes -- Postage 39,776 Prof. Fees 168,671 Recruiting -- Refund 15,149 Rent Deposit -- Rent 252,427 Retention Account 550,000 Taxes (NonPayroll) 8,182 Service Payroll (Including Taxes) 14,661,333 Telephone 82,155 Third Party Billing (Staffing) 26,270 Transportation 131,239 Travel Advance -- Unemployment Taxes -- Utilities 40,556 Utility Deposits -- Workmans Comp 777,575 ----------- Total Disbursements 19,330,715 ----------- Closing Available Balance 904,993 Outstanding A/P Checks $ 778,021 ----------- Ending Bank Balance $ 1,683,014 Unavailable LockBox Receipts 703,027 ----------- Total Cash 2,386,041 =========== I, Carolyn Noonan, authorized signatory, declare under penalty of perjury that the information contained in the above Debtor In Possession Interim Statement is true and complete to the best of my knowledge. Dated: November 14, 2001 /s/ Carolyn H. Noonan ----------------- ------------------------------------------------ Debtor in Possession OFFICE OF THE UNITED STATES TRUSTEE IN RE OUTSOURCE INTERNATIONAL, INC DEBTOR IN POSSESSION INTERIM STATEMENT STATEMENT NO. 4 FROM: 10/1/01 PAGE 1 OF 5 CHAPTER 11 CASE NO. LA 01-28173-BB TO: 10/28/01

I, Carolyn Noonan, authorized signatory, declare under penalty of perjury that the information contained in the above Debtor In Possession Interim Statement is true and complete to the best of my knowledge. /s/ Carolyn H. Noonan Dated November 14, 2001 ---------------------- ------------------------ DEBTOR IN POSSESSION OFFICE OF THE UNITED STATES TRUSTEE IN RE OUTSOURCE INTERNATIONAL, INC DEBTOR IN POSSESSION INTERIM STATEMENT STATEMENT NO. 4 FROM: 10/1/01 PAGE 2 OF 5 CHAPTER 11 CASE NO. LA 01-28173-BB TO: 10/28/01

OFFICE OF THE UNITED STATES TRUSTEE IN RE OUTSOURCE INTERNATIONAL, INC DEBTOR IN POSSESSION INTERIM STATEMENT STATEMENT NO. 4 FROM: 10/1/01 PAGE 3 OF 5 CHAPTER 11 CASE NO. LA 01-28173-BB TO: 10/28/01

OFFICE OF THE UNITED STATES TRUSTEE IN RE OUTSOURCE INTERNATIONAL, INC DEBTOR IN POSSESSION INTERIM STATEMENT STATEMENT NO. 4 FROM: 10/1/01 PAGE 4 OF 5 CHAPTER 11 CASE NO. LA 01-28173-BB TO: 10/28/01

OFFICE OF THE UNITED STATES TRUSTEE IN RE OUTSOURCE INTERNATIONAL, INC DEBTOR IN POSSESSION INTERIM STATEMENT STATEMENT NO. 4 FROM: 10/1/01 PAGE 5 OF 5 CHAPTER 11 CASE NO. LA 01-28173-BB TO: 10/28/01

OFFICE OF THE UNITED STATES TRUSTEE

Page 2 of 3 DEBTOR IN POSSESSION OPERATING REPORT NO: 4 2. Aging of Accounts Payable and Accounts Receivable (Exclude pre-petition accounts payable):

3. Statement of Status of Payments to Secured Creditors and Lessors:

*Explanation for Non-Payment: IN ACCORDANCE WITH BANKRUPTCY CODE SECTION 365(D)(10), DURING THE MONTH OF AUGUST, DEBTOR BEGAN PAYING THE AMOUNTS DUE UNDER THE PERSONAL PROPERTY LEASES FOR AUGUST, ALTHOUGH NOT ALL AUGUST PAYMENTS WERE MADE DURING THE AUGUST REPORTING PERIOD. FOR THE SEPTEMBER REPORTING PERIOD, THE DEBTOR IS CURRENT AND INTENDS TO REMAIN CURRENT GOING FORWARD ON PERSONAL PROPERTY LEASE PAYMENTS PENDING THE DECISION TO ASSUME OR REJECT THE PERSONAL PROPERTY LEASES. 4. Tax Liability: SEE ATTACHED RIDER 4* Gross Payroll Expense for Period: $16,534,555.29 Gross Sales for Period Subject to Sales Tax: $195,019

* Attach photocopies of depository receipts from taxing authorities or financial institutions to verify that such deposits or payments have been made. (NOTE 1) Returns provided regularly to UST, payments generally via ACH. Payment includes amounts due in October from September + amounts due in October from October. (NOTE 2) Payment is due in November. (NOTE 3) Includes local taxes. 5. Insurance Coverage: SEE ATTACHED RIDER 5 AT LA01-28173-BB

Revised April 1989 OPERATING REPORT UST-4 Page 3 of 3 DEBTOR IN POSSESSION OPERATING REPORT NO: 4 6. Questions: A. Has the Debtor in Possession provided compensation to any officers, directors, shareholders or other principals without the approval of the Office of the United States Trustee? Yes Explain: ------- ---------------------------------------------------- X No ------- B. Has the Debtor in Possession, subsequent to the filing of the petition, made any payments on its pre-petition unsecured debt, except as have been authorized by the Court? Yes Explain: ------- ---------------------------------------------------- X No ------- 7. Statement of Unpaid Professional Fees (Post-Petition Amounts ONLY) CONSOLIDATED

8. Narrative Report of Significant Events and Events out of the Ordinary Course of Business (ATTACH SEPARATE SHEET IF NECESSARY) SEE ATTACHED RIDER 6 AT LA 01-28173BB. 9. Quarterly Fees: (This Fee MUST be paid to the United States Trustee every calendar quarter)

I, Carolyn H. Noonan, the Vice President, Controller and Assistant Secretary of Outsource International, Inc., debtor in this chapter 11 case, declare under penalty of perjury that the information contained in the above Debtor in Possession Operating Report is true and complete to the best of my knowledge. Dated: November 14, 2001 /s/ Carolyn H. Noonan ------------------------------- Debtor in Possession or Trustee Revised April 1989 OPERATING REPORT UST-4 Rider 3 - Status of Payments to Secured Creditors and Lessors Outsource International, Inc. Case No. LA 01-28173BB

Rider 3 - Status of Payments to Secured Creditors and Lessors Outsource International, Inc. Case No. LA 01-28173BB

Rider 3 - Status of Payments to Secured Creditors and Lessors Outsource International, Inc. Case No. LA 01-28173BB

Rider 3 - Status of Payments to Secured Creditors and Lessors Outsource International, Inc. Case No. LA 01-28173BB

** These amounts are also included in the Accounts Payable aging in question #2. Note 1: No further invoices received, or due. Amounts represent June and/or July invoices. See explanation on Operating Report for further explanation. Note 2: Vendors no longer servicing these leases. Both Kyocera and Panasonic are being serviced through GE CAPITAL and are reflected on schedule as such on a go-forward basis. RIDER 4 P/R Tax Department 2001 POST-PETITION TAX REPORTING PAYROLL TAX LIABILITIES FOR PERIOD 10/01/01 THROUGH 10/31/01

NOTE 2. Difference between prior period FWT/FUTA balance due and what was actually paid: SYN III Prior period FWT/FUTA balance due $ 92,611.66 + FWT overpaid (due to Sept 2001 voids) 738.77 Prior period FWT/FUTA paid this period $ 93,350.43 =========== NOTE 3. Difference between prior period local accrual and what was actually paid: EAST Prior period local tax accrual $ 14,956.98 + local tax under accrued 30.05 Total prior period local tax paid $ 14,987.03 =========== Rider 5 - Insurance Coverage CONSOLIDATED OUTSOURCE INTERNATIONAL INC CONSOLIDATED INSURANCE SCHEDULE OF COVERAGE AS OF 10/28/01

Rider 5 - Insurance Coverage CONSOLIDATED OUTSOURCE INTERNATIONAL INC CONSOLIDATED INSURANCE SCHEDULE OF COVERAGE AS OF 10/28/01

RIDER 6 - SIGNIFICANT EVENTS CONSOLIDATED Outsource International, Inc. CASE NO. LA 01-28173BB During the October, 2001 reporting period, the following significant events took place: o A motion was filed to assume certain equipment leases and franchise agreements. o Real estate leases in Woburn, MA and Louisville, KY were rejected. o Deloitte & Touche (independent auditors) and Bankruptcy Management Corporation (bankruptcy management consultants) were approved as professional vendors. o Creditors' Committee meeting is scheduled for the first week of December, 2001. o The reorganization plan is expected to be filed in January, 2002 and accepted by March, 2002. o Directors & Officers insurance was renewed on 10/23/01, and a motion was filed to approve the premium financing with approval expected by 11/23/01. o Bill McHale, Sr VP of Sales and Marketing, resigned effective 10/26/01. Replacing this position will be evaluated over the next 2-3 weeks to ensure the role is aligned with the needs of the company. o Retention Bonus payment number #1 was paid as scheduled on November 1, 2001. o Consulting company, I-3 Partners, was retained to help us deal with the new marketplace and to help us improve our recruiting, scripting, account selection and account penetration.

OUTSOURCE INTERNATIONAL INC 8-K