EX-99.3 7 ex99-3.txt BUSINESS AND INDUSTRY MONTHLY OPERATING REPORT Exhibit 99.3 IN THE UNITED STATES BANKRUPTCY COURT FOR THE DISTRICT OF ARIZONA In re: ) CASE NO. B-00-10939-ECF-RTB ) SUNRISE EDUCATIONAL SERVICES ) BUSINESS AND INDUSTRY ) MONTHLY OPERATING REPORT ) ) MONTH OF JUNE ) Debtor(s) ) DATE PETITION FILED: October 6, 2000 ) ) TAX PAYER ID NO. 4101581297 Nature of Debtor's Business: For Profit Educational Services DATE DISCLOSURE STATEMENT: FILED Not Yet Filed TO BE FILED To Be Determined ------------- ---------------- DATE PLAN OF REORGANIZATION: FILED Not Yet Filed TO BE FILED To Be Determined ------------- ---------------- I CERTIFY UNDER PENALTY OF PERJURY THAT THE FOLLOWING MONTHLY OPERATING REPORT AND THE ACCOMPANYING ATTACHMENTS ARE TRUE AND CORRECT TO THE BEST OF MY KNOWLEDGE. RESPONSIBLE PARTY: CEO --------------------------------------- ---------- ORIGINAL SIGNATURE OF RESPONSIBLE PARTY TITLE Michael Lynch --------------------------------------- ---------- PRINTED NAME OF RESPONSIBLE PARTY DATE PREPARER: Controller --------------------------------------- ---------- ORIGINAL SIGNATURE OF PREPARER TITLE Douglass E. Snell --------------------------------------- ---------- PRINTED NAME OF PREPARER DATE PERSON TO CONTACT REGARDING THIS REPORT: Douglass E. Snell --------------------------------------- PHONE NUMBER: 480-783-4317 --------------------------------------- ADDRESS: 4515 E. Muirwood Dr. Phoenix, AZ 85048 --------------------------------------- ORIGINAL OF REPORT IS FILED WITH THE COURT, COPY IS FILED WITH U.S. TRUSTEE'S OFFICE SUNRISE EDUCATIONAL SERVICES, INC. B-00-10939-ECF-RTB MONTH: JUNE 2001 RECEIPTS AND DISBURSEMENTS BANK ACCOUNTS ------------------------------------------ Amounts reported should be SUNRISE SUNRISE PMTS per the debtor's books, OPERATING MADE BY not per the bank statement #052-978-7889 TESSERACT TOTAL ------------- --------- -------------- ACCOUNT BALANCE - BEGINNING OF MONTH -- -- RECEIPTS STUDENT FEES -- CHARTER SCHOOL REVENUE -- ACCOUNTS RECEIVABLE -- LOANS AND ADVANCES -- SALE OF ASSETS -- TRANSFERS IN FROM OTHER ACCOUNTS 398,788.18 515,687.64 914,475.82 TRANSFERS IN FROM OTHER ACCOUNTS -- TOTAL RECEIPTS 398,788.18 515,687.64 914,475.82 DISBURSEMENTS BUSINESS - ORDINARY OPERATIONS 398,788.18 398,788.18 CAPITAL IMPROVEMENTS -- PRE-PETITION DEBT -- TRANSFERS TO OTHER DIP ACCOUNTS -- PAYMENTS MADE FOR SUNRISE EDU 515,687.64 515,687.64 OTHER (ATTACH LIST) -- REORGANIZATION EXPENSES: ATTORNEY FEES -- ACCOUNTANT FEES -- OTHER PROFESSIONAL FEES -- U.S. TRUSTEE QUARTERLY FEE -- COURT COSTS -- TOTAL DISBURSEMENTS 398,788.18 515,687.64 914,475.82 ---------- ---------- ---------- ACCOUNT BALANCE - END OF MONTH -- -- -- ========== ========== ========== THE FOLLOWING SECTION MUST BE FILLED OUT DISBURSEMENTS FOR CALCULATING QUARTERLY FEES: TOTAL DISBURSEMENTS FROM ABOVE 914,475.82 LESS: TRANSFERS OUT TO OTHER DIP ACCOUNTS -- PLUS: ESTATE DISBURSEMENTS MADE BY OUTSIDE SOURCES ---------- TOTAL DISBURSEMENTS FOR CALCULATING QUARTERLY FEES: 914,475.82 ========== 2 Sunrise Educational Services, Inc. Statement of Operations For the Month Ending June 30, 2001 Revenue Tuition and Fees Revenue $1,045,548.14 Government Revenue 92,061.84 Food Revenue 3,334.90 Discounts (142,286.85) Refunds/Returns (275.30) ------------- Total Revenue 998,382.73 ------------- Operational Costs Salaries and Wages 453,574.65 Taxes and Benefits 54,597.01 Classroom Expenses 6,834.01 Food Programs Expense 37,495.20 Grants/Fee Expense 585.20 Transportation Expenses 14,373.39 Maintenance Expense 65,941.28 Insurance Expense 22,614.54 Rent Expense 207,690.54 Security Services Expense 3,483.88 Personal Property Tax Expense 1,542.84 Real Property Tax Expense 6,007.62 Utilities Expense 23,266.21 ------------- Total Operational Costs 898,006.37 ------------- General & Administrative Costs Advertising, Mktg, Promo Exp 2,628.32 Bad Debt Expense 13,854.58 Bank Charges/Processing Fees-A 17,000.63 Computer/Technology Expense 7,817.69 Licenses & Fees Expense 1,402.41 Office/School Supplies Expense 2,716.30 Penalties and Late Fee Charges -- Postage and Printing Expense 284.75 Pre-Employment Expense 1,027.00 Telephone Expense 7,546.48 Travel Expense 1,357.06 Allocated Corporate Overhead 186,785.00 Other Expenses 1,084.21 ------------- Total General and Administrative Expenses 243,504.43 ------------- Gain (Loss) on Disposal of Assets -- Interest Expense -- Other Income (Expense) -- ------------- Net Interest and Other Income (Expense) -- ------------- Depreciation Expense 14,214.80 ------------- Total Depreciation and Amortization 14,214.80 ------------- Reorganization Expenses Bankruptcy Fees -- Professional Fees Allocated -- ------------- Total Reorganization Expenses -- ------------- Net Income $ (157,342.87) ============= 3 Sunrise Educational Services, Inc. Balance Sheet June 30, 2001 ASSETS Current Assets Cash and Cash Equivalents $ 9,991.29 Accounts Receivable, net 397,149.81 Prepaid Rent 216,750.02 Other Current Assets 14,294.44 ------------- Total Current Assets 638,185.56 Due From Tesseract 969,876.77 Property and Equipment, net 825,501.67 Deposits and Other Assets 163,288.42 ------------- Total Assets $2,596,852.42 ============= LIABILITIES AND SHAREHOLDERS' EQUITY Current Liabilities Accounts Payable $ 48,064.70 Checks in Process of Collection 255,573.69 Payroll and Related Accruals 428,950.06 Deferred Revenue and Tuition Deposits 59,298.63 ------------- Total Current Liabilities 791,887.08 ------------- Pre-Petition Liabilities Accounts Payable 664,382.01 Other Current Liabilities 138,968.45 Long-Term Debt 5,546.62 ------------- Total Pre-Petition Liabilities 808,897.08 ------------- Reserve for Closed Schools 143,661.34 Other Long-Term Obligations 274,439.09 ------------- Total Long-Term Liabilities 418,100.43 ------------- Total Liabilities 2,018,884.59 ------------- Shareholders' Equity Pre-Petition Shareholders' Equity 1,156,067.94 Post Petition Retained Deficit (578,100.11) ------------- Total Shareholders' Equity 577,967.83 ------------- Total Liabilities and Shareholders' Equity $2,596,852.42 ============= 4 CASE NUMBER: B-00-10939-ECF-RTB STATUS OF ASSETS 0-30 31-60 60+ ACCOUNTS RECEIVABLE TOTAL DAYS DAYS DAYS ------------------- ----- ---- ---- ---- TOTAL ACCOUNTS RECEIVABLE 397,150 377,807 12,790 6,553 LESS: AMOUNT CONSIDERED UNCOLLECTIBLE ACCOUNTS RECEIVABLE (NET) 397,150 377,807 12,790 6,553 SCHEDULED CURRENT FIXED ASSETS AMOUNT ADDITIONS DELETIONS AMOUNT ------------ ------ --------- --------- ------ REAL PROPERTY BUILDING IMPROVEMENTS/PLANT 1,020,140 56,214 293,926 782,429 ACCUMULATED DEPRECIATION (413,993) (115,058) (156,974) (372,077) NET BUILDINGS/PLANT 606,147 (58,844) 136,952 410,352 EQUIPMENT 755,300 24,266 290,389 489,178 ACCUMULATED DEPRECIATION (511,115) (130,029) (318,916) (322,228) NET EQUIPMENT 244,186 (105,763) (28,527) 166,950 AUTOS & VEHICLES 953,839 953,839 ACCUMULATED DEPRECIATION (625,670) (79,967) (705,637) NET AUTOS & VEHICLES 328,170 (79,967) -- 248,202 5 CASE NUMBER: B-00-10939-ECF-RTB STATUS OF LIABILITIES AND SENSITIVE PAYMENTS POSTPETITION UNPAID OBLIGATIONS TOTAL 0-30 31-60 61-90 91+ ------------------ ----- ---- ----- ----- ----- ACCOUNTS PAYABLE 48,065 43,494 -- -- 4,571 TAXES PAYABLE 36,545 36,545 ACCRUED PAYROLL AND BENEFITS 392,405 392,405 PREPAID TUITION 59,299 59,299 SECURED DEBT OUTSTANDING A/P CHECKS 255,574 255,574 OTHER (ATTACH LIST) ------- ------- --- --- ----- TOTAL POSTPETITION LIABILITIES 791,887 787,316 -- -- 4,571 ======= ======= === === ===== PAYMENTS TO INSIDERS AND PROFESSIONALS INSIDERS AMOUNT PD TOTAL PD NAME REASON FOR PAYMENT THIS MONTH TO DATE ---- ------------------ ---------- ------- NONE TOTAL PAYMENTS TO INSIDERS -- -- PROFESSIONALS DATE OF COURT TOTAL ORDER AUTHORIZING AMOUNT AMOUNT TOTAL PAID INCURRED NAME PAYMENT APPROVED PAID TO DATE & UNPAID ---- ------- -------- ---- ------- -------- NONE 6 CASE NUMBER: B-00-10939-ECF-RTB CASE STATUS QUESTIONNAIRE YES NO --- -- HAVE ANY FUNDS BEEN DISBURSED FROM ANY ACCOUNT OTHER THAN A DEBTOR IN POSSESSION ACCOUNT? NO ARE ANY POSTPETITION RECEIVABLES (ACCOUNTS, NOTES, OR LOANS) DUE FROM RELATED PARTIES? NO ARE ANY WAGE PAYMENTS PAST DUE? NO ARE ANY U.S. TRUSTEE QUARTERLY FEES DELINQUENT? NO CURRENT NUMBER OF EMPLOYEES: 458 INSURANCE CARRIER AND PERIOD EXPIRATION PAYMENT AMOUNT TYPE OF POLICY POLICY NUMBER COVERED DATE & FREQUENCY -------------- ------------- ------- ---- ----------- Gen Liability CLI0020446 3/1/2001 7/31/2001 Paid in full Auto Liability 70APN164181 3/1/2001 7/31/2001 Paid in full Excess Liability UMI0000567 3/1/2001 7/31/2001 Paid in full Workers Comp 307512-4 12/1/2000 11/30/2001 Monthly as a % of PR Blanket Contents 59UUMUN3158 3/1/2001 7/31/2001 Paid in full WHAT STEPS HAVE BEEN TAKEN TO REMEDY ANY OF THE PROBLEMS THAT BROUGHT ABOUT THE CHAPTER 11 FILING? Purchasing of new schools has ceased, and administrative expenses have been reduced. Other restructuring measures are being considered. LIST ANY MATTERS THAT ARE DELAYING THE FILING OF A PLAN OF REORGANIZATION? 7 SUNRISE EDUCATIONAL SERVICES, INC. CASH FLOW ANALYSIS B-00-10939-ECF-RTB BEGINNING FUNDS AVAILABLE: $ 173,776.03 ------------- Cash In: Telecheck $ 210,153.45 Credit Card Deposit (Preschools) 426,294.78 Regular Deposits (Preschools) 417,960.63 ------------- Daily Cash In: $1,054,408.86 ============= Cash Out: Preschool A/P $ 398,788.18 Preschool Payroll 456,029.26 Corporate A/P (allocated) 59,658.38 Preschool NSF 329.00 ------------- Daily Cash Out: $ 914,804.82 ============= Net Cash In/Out: $ 139,604.04 ------------- ENDING FUNDS AVAILABLE: $ 313,380.07 ============= 8 Sunrise Preschools, Inc. VENDOR CHECK REGISTER REPORT Payables Management * Voided Checks

9 Sunrise Preschools, Inc. VENDOR CHECK REGISTER REPORT Payables Management * Voided Checks

10 Sunrise Preschools, Inc. VENDOR CHECK REGISTER REPORT Payables Management * Voided Checks

TESSERACT GROUP INC 8-K