EXHIBIT 5.4
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OFFICE OF THE UNITED STATES TRUSTEE
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IN RE: ) DEBTOR IN POSSESSION OPERATING REPORT
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Wahlco Engineered Products, Inc. ) REPORT NUMBER 4 Page 1 of 3
) FOR THE PERIOD FROM: 1-Mar-00
DEBTOR ) TO: 31-Mar-00
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CHAPTER 11 CASE NO. SA99-22775-JR )
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1. Profit and Loss Statement
A. Related to Business Operations:
Gross Sales
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Less Sales Returns and Discounts
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Net Sales
Less: Cost of Goods Sold
Beginning Inventory at Cost
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Add: Purchases
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Less: Ending Inventory at Cost
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Cost of Goods Sold
Gross Profit
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Other Operating Revenue (Specify)
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Less: Operating Expenses SEE ATTACHED
Officer Compensation
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Salaries & Wages - Other Employees
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Total Salaries & Wages
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Employee Benefits
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Payroll Taxes
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Real Estate Taxes
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Federal and State Income Taxes
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Total Taxes
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Rent and Lease Exp. (Real and Personal Property)
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Interest Expense (Mortgage, Loan, etc.)
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Insurance
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Automobile Expense
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Utilities (Gas, Electric, Water, Telephone, etc.)
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Depreciation and Amortization
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Repairs and Maintenance
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Advertising
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Supplies, Office Expenses, Photocopies, etc.
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Bad Debts
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Miscellaneous Operating Expenses (Specify)
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Total Operating Expenses
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Net Gain/(Loss) from Business Operations
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B. Not Related to Business Operations
Income:
Interest Income
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Other Non-Operating Revenues (Specify)
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Gross Proceeds on Sale of Assets
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Less: Original Cost of Assets plus Expenses of Sale
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Net Gain/(Loss) on Sale of Assets
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Total Non-Operating Income
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Expenses Not Related to Business Operations:
Legal and Professional Fees
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Other Non-Operating Revenues (Specify)
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Total Non-Operating Expenses
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NET INCOME /(LOSS) FOR PERIOD
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Revised April 1989 OPERATING REPORT UST-4
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Wahlco Engineered Products, Inc.
Income Statement
03/01/00 to
Revenue 3/31/00
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Fabric expansion joint 17,540.00
Metal expansion joint 58,941.00
Dampers 165,042.00
Field service 34,163.10
Spare parts 54,908.00
Diverter-Gas Turbine Group 53,752.58
Skid mounted assemblies 142,953.00
Other 40,453.00
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Total trade sales 567,752.68
Revenue recognized percent
complete contract 459,232.61
Intercompany-Wahlco Air Syst. -
Intercompany-Thermatrix 3,785.98
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Total intercompany sales 3,785.98
Total sales 1,030,771.27
Cost of goods sold
Fabric expansion joint 8,663.82
Metal expansion joint 51,963.84
Dampers 112,727.35
Field service 19,153.53
Spare parts 42,526.36
Dampers gas turbine -
TMXI products 3,785.98
Wahlco Air products -
Diverter Gas Turbine 27,602.21
Skid mounted assembly 116,698.97
Other 41,542.32
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424,664.38
Percent complete contracts 411,355.45
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Gross Profit 194,751.44
Other direct costs
Unabsorbed factory overhead (17,021.69)
Unabsorbed engineering 7,281.23
Unabsorbed field service 5,231.00
Unabsorbed project management 10,549.90
Safety department 4,040.41
Purchasing department 11,729.51
Freight-out 3,620.45
Freight-in 5,642.61
Inventory adjustment 3,913.19
Job purchases-non item-master (308.05)
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Total other direct costs 34,678.56
Adjusted gross profit 160,072.88
Selling, general & administrative expenses
Administrative expense 39,620.88
Sales expense 47,841.31
Sales commission 19,128.34
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Total S,G&A 106,590.53
Operating income 53,482.35
Other (income)/expense
Interest income -
Interest expense - XXX -
Depreciation expense 14,136.82
Other income/expense -
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Total other income/expense 14,136.82
Net income/(loss) - note 1 39,345.53
Note 1 - This statement has not been adjusted to reflect the appropriate
allocation of corporate expenses and restructuring charges.
Due to the 1999 financial results not being finalized by our independent
auditors the above data is subject to change.
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DEBTOR IN POSSESSION OPERATING REPORT NO. 4
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Wahlco Engineered Products, Inc., Xxxxxx Xxxx Xx. XX00-00000XX
Page 2 of 3
2. Aging of Accounts Payable and Receivable (exclude pre-petition debt from
accounts payable):
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Accounts Payable * Accounts Receivable
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Current Under 30 days $ 85,031.37 $ 442,902.69
Overdue 31 - 60 days 59,849.87 419,321.01
Overdue 61 - 90 days - 380.00
Overdue 91 - 120 days - 190,545.92
Overdue 121 + days - 252,815.00
Total $144,881.24 $1,305,964.62
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* We are researching the pre/post petition status of certain accounts
payable which resolution may result in a change to the above data
3. Statement of Status of Payments to Secured Creditors and Lessors:
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Frequency of Post-Petition
Payments per Amount of Payments Not Made
Creditor/Lessor Lease/Contract Each Payment Next Payment Due Number Amount
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Wexford Management Payments have been suspended due to Chapter 11 filing
AscomHalfler Quarterly $ 90.00 5/19/00 - $ -
Caterpillar Fin Svc Monthly 431.00 4/15/00 - -
Conseco Monthly 224.50 4/28/00 2 449.00
Conseco Monthly 398.00 4/29/00 2 796.00
Great American Leasing Monthly 63.69 4/12/00 - -
Conseco Monthly 470.92 4/8/00 - -
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4. Tax Liability:
Gross Payroll Expense For Period 251,827.87
Gross Sales for Period Subject to Sales Tax -
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Post Petition Taxes
Date Paid Amount Paid * Still Owing
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Federal Payroll and Withholding Taxes Various (see below **) $ 76,295.18 $ -
State Payroll and Withholding Taxes Various (see below **) 22,373.71 -
State Sales and Use Tax 3/10/00 133.79 124.85
Real Property Taxes 3/10, 3/23 38,666.45 -
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* Attach photocopies of depository receipts from taxing authority or
financial institution to verify that such deposits or payments have
been made.
** State and federal payroll/withholding taxes are paid by a payroll
service provider. At the end of the month we accrue for payroll
which has not yet been paid. This accrual is included as part of the
above gross payroll expense total. We do not show any post petition
taxes still owing on these accruals as the taxes will not be due
until the payroll is actually paid. This accrued payroll was dated
and paid on 4/5/00.
5. Insurance Coverage
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Carrier/ Amount of Policy Premium Paid
Agent Coverage Exp. Date Thru Date
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Worker's Compensation
Liability See attached for Insurance Coverage
Fire and Extended Coverage
Property
Theft
Life (Beneficiary:________________)
Vehicle
Other
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DEBTOR IN POSSESSION OPERATING REPORT NO. 4
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Wahlco Engineered Products, Inc., Xxxxxx Xxxx Xx. XX00-00000XX
Page 3 of 3
6. Questions:
A. Has the Trustee provided to any officers, directors, shareholders, or
other principals compensation without the approval of the Office of the
United States Trustee?
_____ : Yes Explain:
______________________________________________
__X__ : No
B. Has the Trustee, 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 Only):
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Type Post-Petition
Name of Professional Professional Unpaid Total
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See the Thermatrix Inc. report for detail
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8. Narrative Report of Significant Events And Events Out Of The Ordinary Course
Of Business:
9. Quarterly Fees: (This Fee must be paid to the United States Trustee every
calendar quarter)
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Quarterly
Quarterly Disbursements Quarterly Quarterly
Period Ending for Quarter Fee Date Paid Amount Paid Check No. Fee Still Owing
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3/31/00 $2,299,270.00 $7,500.00 $7,500.00
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I, Xxxxxx Xxxxxx, President, declare under penalty of perjury that the
information contained in the above Debtor in Possession Operating Report, which
is subject to further review and verification, is true and complete to the best
of my knowledge.
Dated: 4/17/00 Signed: /s/ Xxxxxx X. Xxxxxx
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