8-K 1 n8k010204.txt UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM 8-K CURRENT REPORT PURSUANT TO SECTION 13 OR 15 (d) OF THE SECURITIES EXCHANGE ACT OF 1934 DATE OF REPORT (DATE OF EARLIEST EVENT REPORTED) January 2, 2004 NUTRITIONAL SOURCING CORPORATION (EXACT NAME OF REGISTRANT AS SPECIFIED IN ITS CHARTER) Delaware 33-63372 65-0415593 ------------------------------ --------------- ---------------------- (State or other jurisdiction (Commission (I.R.S. employer of incorporation) File Number) identification no.) 1300 N.W. 22nd Street Pompano Beach, Florida 33069 ---------------------------------------- ----------------------- (Address of principal executive offices) (Zip code) Registrant's telephone number, including area code: (954) 977-2500 --------------- Registrant's former name ------------------------ ITEM 5. OTHER EVENTS AND REGULATION FD DISCLOSURE On December 19, 2003, Nutritional Sourcing Corporation (the "Company") filed its monthly operating reports for the periods extending from April 20, 2003 through November 29, 2003 (the "Operating Reports") with the United States Bankruptcy Court for the District of Delaware, from which certain excerpted financial information is attached hereto as Exhibit 99.1 through Exhibit 99.8. These reports were filed in connection with the Company's voluntary petition for reorganization under Chapter 11 of Title 11 of the United States Bankruptcy Code in Case No. 02-12550. The Company cautions readers not to place reliance upon the information contained in the Operating Reports. The Operating Reports contain unaudited information, are limited in scope, cover a limited time period and are in the format prescribed by the applicable bankruptcy laws. There can be no assurance that the Operating Reports are complete. The Company also cautions readers to read the Cautionary Statement contained as part of this filing. ITEM 7 FINANCIAL INFORMATION, PRO FORMA FINANCIAL INFORMATION AND EXHIBITS (c) Exhibit. Document Description 99.1 Monthly Operating Report for the Period April 20, 2003 to May 17, 2003. 99.2 Monthly Operating Report for the Period May 18, 2003 to June 14, 2003. 99.3 Monthly Operating Report for the Period June 15, 2003 to July 12, 2003. 99.4 Monthly Operating Report for the Period July 13, 2003 to August 9, 2003. 99.5 Monthly Operating Report for the Period August 10, 2003 to September 6, 2003. 99.6 Monthly Operating Report for the Period September 7, 2003 to October 4, 2003. 99.7 Monthly Operating Report for the Period October 5, 2003 to November 1, 2003. 99.8 Monthly Operating Report for the Period November 2, 2003 to November 29, 2003. SIGNATURE Pursuant to the requirement of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized. Nutritional Sourcing Corporation January 2, 2004 By: /s/ Daniel J. O'Leary --------------------------- Daniel J. O'Leary Executive Vice President And Chief Financial Officer Exhibit 99.1 UNITED STATES BANKRUPTCY COURT FOR THE DISTRICT OF DELAWARE ----------------------------------------------------------------------------- In re: Case No.: 02-12550 (PJW) Nutritional Sourcing Corporation ----------------------------------------------------------------------------- MONTHLY OPERATING REPORT FOR THE PERIOD APRIL 20, 2003 TO MAY 17, 2003 The undersigned declares under penalty of perjury (28 U.S.C. Section 1746) that this report is true and correct to the best of my knowledge. Date: December 12, 2003 Nutritional Sourcing Corporation By: /s/ Daniel J. O'Leary --------------------------- Daniel J. O'Leary Executive Vice President And Chief Financial Officer NUTRITIONAL SOURCING CORPORATION U.S. TRUSTEE MONTHLY OPERATING REPORT FOR THE PERIOD APRIL 20, 2003 TO MAY 17, 2003 I. Nutritional Sourcing Corporation (Parent Only) Unaudited Special-Purpose Financial Statements A. Special-Purpose Statement of Operations for the period April 20, 2003 to May 17, 2003 B. Special-Purpose Balance Sheet as of May 17, 2003 and September 4, 2002 C. Cash Receipts and Disbursements for the period September 4, 2002 to May 17, 2003 D. Schedule of Professional Fees and Expenses for the period September 4, 2002 to May 17, 2003 E. Summary of Post Petition Taxes for the period September 4, 2002 to May 17, 2003 F. Accounts Receivable Reconciliation and Aging as of May 17, 2003 G. Bank reconciliations (the company's copies are attached) and copies of Bank statements. * II. Debtor Questionnaire __________________________________________________________________________ * Omitted from Form 8-K. NUTRITIONAL SOURCING CORPORATION SPECIAL-PURPOSE STATEMENT OF OPERATIONS (Unaudited) ----------------------------------------------------------------------------- (DOLLARS IN THOUSANDS)

CUMULATIVE FILING PERIOD TO DATE ----------------- ----------------- ~~MARCH~~APRIL 2320, 2003 SEPTEMBER 4, 2002 TO TO ~~APRIL~~MAY 1917, 2003 ~~APRIL~~MAY 1917, 2003 ----------------- ----------------- SALES $ 0 $ 0 Cost of Sales 0 0 ----------------- ----------------- GROSS MARGIN 0 0 Selling, general and administrative expenses 0 0 ----------------- ----------------- OPERATING PROFIT 0 0 Interest income (expense): Interest income 1,~~327~~328 1011,~~553~~881 Interest expense: amortization of original issue discount (36) (~~291~~327) ----------------- ----------------- Net interest income 1,~~291~~292 1011,~~262~~553 ----------------- ----------------- NET INCOME (LOSS) BEFORE REORGANIZATION ITEMS AND TAXES 1,~~291~~292 1011,~~262~~553 Reorganization items ~~467~~525 3,~~139~~664 ----------------- ----------------- NET INCOME (LOSS) BEFORE TAXES ~~824~~767 7,~~123~~890 Income Tax expense 0 174 ----------------- ----------------- NET INCOME (LOSS) BEFORE EARNINGS OF SUBSIDIARIES ~~824~~767 67,~~949~~716 Equity in earnings (loss) of subsidiaries (1,~~635~~807) (10151,~~344~~726) (1) ----------------- ----------------- NET INCOME (LOSS) $ (~~811~~1,040) $ (3144,~~395~~010) ================= =================

(1) Per the requirements of SFAS No. 142, the Company recorded a $139,856 write down of goodwill. Additionally, the Company reversed $281 of previously recorded trade name amortization NUTRITIONAL SOURCING CORPORATION SPECIAL-PURPOSE BALANCE SHEET (Unaudited) ----------------------------------------------------------------------------- (DOLLARS IN THOUSANDS, EXCEPT SHARE DATA)

AS OF ------------------------------ ~~APRIL~~MAY 1917, SEPTEMBER 4, 2003 2002 -------------- -------------- ASSETS CURRENT ASSETS Cash & cash equivalents $ 14 $ 0 Accounts receivable 1920,~~518~~755 9,662 Notes receivable, net of Unamortized Premium of $~~342~~250 and $1,040 as of ~~April~~May 1917, 2003 and September 4, 2002, respectively ~~161~~162,~~941~~033 161,243 Prepaid expenses ~~226~~195 1,660 -------------- -------------- TOTAL CURRENT ASSETS ~~181~~182,~~699~~997 172,565 Bond issue costs ?- 1993 issue ~~134~~98 426 Deferred tax asset ?- original issue discount 1,579 1,209 Equity in subsidiaries 49(91,~~473~~908) 59,817 -------------- -------------- TOTAL ASSETS $ ~~232~~92,~~885~~766 $ 234,017 ============== ============== LIABILITIES AND STOCKHOLDERS' EQUITY CURRENT LIABILITIES Interest Payable $ 0 $ 9,977 Bonds Payable, net of Unamortized Discount of $1,052 as of September 4, 2002 0 176,231 Accrued expenses ~~586~~1,076 0 Deferred income taxes payable 544 0 Intercompany payable 1,~~133~~139 11,203 -------------- -------------- TOTAL CURRENT LIABILITIES 2,~~263~~759 197,411 Other liabilities 0 0 -------------- -------------- TOTAL LIABILITIES NOT SUBJECT TO COMPROMISE 2,~~263~~759 0 LIABILITIES SUBJECT TO COMPROMISE 197,411 197,411 Common stock ($0.10 par value) 0 0 Additional paid in capital 91,500 91,500 Retained earnings (deficit) (58198,~~289~~904) (54,894) -------------- -------------- TOTAL LIABILITIES & STOCKHOLDERS' EQUITY $ ~~232~~92,~~885~~766 $ 234,017 ============== ============== Memo: LIABILITIES SUBJECT TO COMPROMISE Notes payable $ 176,231 Interest payable 9,977 Intercompany payable 11,203 -------------- $ 197,411 ==============

NUTRITIONAL SOURCING CORPORATION CASH RECEIPTS AND DISBURSEMENTS (Unaudited) ----------------------------------------------------------------------------- (DOLLARS IN THOUSANDS)

PERIOD CUMULATIVE FILING TO DATE ------------------------------ ----------------------------- FROM ~~MARCH~~APRIL 2320, 2003 FROM SEPTEMBER 4, 2002 TO ~~APRIL~~MAY 1917, 2003 TO ~~APRIL~~MAY 1917, 2003 ------------------------------ ----------------------------- ACTUAL PROJECTED ACTUAL PROJECTED ------------- ------------- ------------ ------------- Cash Receipts: Loans and advances (1) $ 414 $ 0 $ 1,~~061~~065 $ 3,858 ------------- ------------- ------------ ------------- CASH INFLOWS 414 0 1,~~061~~065 3,858 ------------- ------------- ------------ ------------- Cash Disbursements: Professional fees ~~318~~0 0 1,043 3,840 U.S. Trustee fees 04 0 48 18 ------------- ------------- ------------ ------------- CASH OUTFLOWS ~~318~~4 0 1,~~047~~051 3,858 ------------- ------------- ------------ ------------- NET CASH INFLOWS (OUTFLOWS) $ ~~(277)~~0 $ 0 $ 14 $ 0 ============= ============= ============ =============

(1) All loans and advances were made to NSC by its operating subsidiaries. NUTRITIONAL SOURCING CORPORATION SCHEDULE OF PROFESSIONAL FEES AND EXPENSES (Unaudited) -----------------------------------------------------------------------------

FOR THE PERIOD SEPTEMBER 4, 2002 TO ~~APRIL~~MAY 1917, 2003 ------------------------------------------------------------- BILLED NAME AMOUNT PAID UNPAID TOTAL ---- ------------- ------------- ------------- ------------- Alvarez & Marsal $ 82,091 $ 82,091 $ 0 $ 82,091 Ashby & Geddes 2026,~~736~~144 6,~~183~~184 1419,~~553~~960 2026,~~736~~144 Bowne of Miami 16,485 1,563 14,922 16,485 D.F. King & Co., Inc. 7,527 7,527 0 7,527 Duane Morris LLP 50,000 50,000 0 50,000 Gavin Anderson 34,459 34,459 0 34,459 Kaye Schoeler LLP 85240,~~587~~307 5,364 80234,~~223~~943 85240,~~587~~307 Jeffries & Company ~~950~~1,093,559 642,301 ~~308~~451,258 ~~950~~1,093,559 Milbank, Tweed, Hadley & McCloy 60140,000 0 60140,000 60140,000 R. R. Donnelley Receivables 22,384 22,384 0 22,384 Stroock & Stroock & Lavan LLP ~~293~~358,~~463~~580 189,021 ~~104~~169,~~442~~559 ~~293~~358,~~463~~580 United States Trustee 11,500 7,750 ~~4,000~~ 3,750 711,~~750~~500 Other 144,~~887~~386 13,~~887~~149 041,237 144,~~887~~386 ------------- ------------- ------------- ------------- TOTAL $ 12,~~632~~127,~~928~~422 $ 1,~~046~~051,~~780~~792 $ ~~586~~1,~~148~~075,630 $ 12,~~632~~127,~~928~~422 ============= ============= ============= =============

NUTRITIONAL SOURCING CORPORATION SUMMARY OF POSTPETITION TAXES FROM THE PERIOD SEPTEMBER 4, 2002 TO MAY 17, 2003 (Unaudited) ----------------------------------------------------------------------------- (DOLLARS IN THOUSANDS)

Beginning Amount Ending Tax Withheld or Amount Date Check No. Tax Liability Accrued Paid Paid or EFT Liability ----------- ----------- ---------- ---------- ---------- ---------- FEDERAL: Income: Accrued provision $ ~~0 $~~ 544 $ 0 $ 0 $N/A 0N/A $ 544 ----------- ----------- ---------- ---------- ---------- ---------- TOTAL $ ~~0 $~~ 544 $ 0 $ 0 $N/A 0N/A $ 544 =========== =========== ========== ========== ========== ==========

NUTRITIONAL SOURCING CORPORATION ACCOUNTS RECEIVABLE RECONCILIATION AND AGING (Unaudited) ----------------------------------------------------------------------------- (DOLLARS IN THOUSANDS)

AS OF ~~APRIL~~MAY 1917, 2003 ------------------ ACCOUNTS RECEIVABLE RECONCILIATION: Total Accounts Receivable at the beginning of the reporting period $ 1819,~~282~~518 + Amounts billed during the period 1,~~236~~237 - Amounts collected during the period 0 ------------------ Total Accounts Receivable at the end of the reporting period $ 1920,~~518~~755 ==================

AS OF ~~APRIL~~MAY 1917, 2003 ------------------ ACCOUNTS RECEIVABLE AGING: 0 - 30 days old $ 1,~~236~~237 31 - 60 days old 1,~~237~~236 61 - 90 days old 1,~~234~~237 91+ days old 1517,~~811~~045 ------------------ Total Accounts Receivable 1920,~~518~~755 Amounts considered uncollectible (Bad Debt) 0 ------------------ Accounts Receivable (Net) $ 1920,~~518~~755 ==================

NUTRITIONAL SOURCING CORPORATION SPECIAL-PURPOSE BALANCE SHEET (Unaudited) ----------------------------------------------------------------------------- (DOLLARS IN THOUSANDS, EXCEPT SHARE DATA)

NUTRITIONAL SOURCING CORPORATION CASH RECEIPTS AND DISBURSEMENTS (Unaudited) ----------------------------------------------------------------------------- (DOLLARS IN THOUSANDS)

NUTRITIONAL SOURCING CORPORATION SUMMARY OF POSTPETITION TAXES FROM THE PERIOD SEPTEMBER 4, 2002 TO JUNE 14 2003 (Unaudited) ----------------------------------------------------------------------------- (DOLLARS IN THOUSANDS)

NUTRITIONAL SOURCING CORPORATION ACCOUNTS RECEIVABLE RECONCILIATION AND AGING (Unaudited) ----------------------------------------------------------------------------- (DOLLARS IN THOUSANDS)

NUTRITIONAL SOURCING CORPORATION SPECIAL-PURPOSE BALANCE SHEET (Unaudited) ----------------------------------------------------------------------------- (DOLLARS IN THOUSANDS, EXCEPT SHARE DATA)

NUTRITIONAL SOURCING CORPORATION CASH RECEIPTS AND DISBURSEMENTS (Unaudited) ----------------------------------------------------------------------------- (DOLLARS IN THOUSANDS)

NUTRITIONAL SOURCING CORPORATION SUMMARY OF POSTPETITION TAXES FROM THE PERIOD SEPTEMBER 4, 2002 TO JULY 12, 2003 (Unaudited) ----------------------------------------------------------------------------- (DOLLARS IN THOUSANDS)

NUTRITIONAL SOURCING CORPORATION ACCOUNTS RECEIVABLE RECONCILIATION AND AGING (Unaudited) ----------------------------------------------------------------------------- (DOLLARS IN THOUSANDS)

NUTRITIONAL SOURCING CORPORATION SPECIAL-PURPOSE BALANCE SHEET (Unaudited) ----------------------------------------------------------------------------- (DOLLARS IN THOUSANDS, EXCEPT SHARE DATA)

NUTRITIONAL SOURCING CORPORATION CASH RECEIPTS AND DISBURSEMENTS (Unaudited) ----------------------------------------------------------------------------- (DOLLARS IN THOUSANDS)

NUTRITIONAL SOURCING CORPORATION SUMMARY OF POSTPETITION TAXES FROM THE PERIOD SEPTEMBER 4, 2002 TO AUGUST 9, 2003 (Unaudited) ----------------------------------------------------------------------------- (DOLLARS IN THOUSANDS)

NUTRITIONAL SOURCING CORPORATION ACCOUNTS RECEIVABLE RECONCILIATION AND AGING (Unaudited) ----------------------------------------------------------------------------- (DOLLARS IN THOUSANDS)

NUTRITIONAL SOURCING CORPORATION SPECIAL-PURPOSE BALANCE SHEET (Unaudited) ----------------------------------------------------------------------------- (DOLLARS IN THOUSANDS, EXCEPT SHARE DATA)

NUTRITIONAL SOURCING CORPORATION CASH RECEIPTS AND DISBURSEMENTS (Unaudited) ----------------------------------------------------------------------------- (DOLLARS IN THOUSANDS)

NUTRITIONAL SOURCING CORPORATION SUMMARY OF POSTPETITION TAXES FROM THE PERIOD SEPTEMBER 4, 2002 TO SEPTEMBER 6, 2003 (Unaudited) ----------------------------------------------------------------------------- (DOLLARS IN THOUSANDS)

NUTRITIONAL SOURCING CORPORATION ACCOUNTS RECEIVABLE RECONCILIATION AND AGING (Unaudited) ----------------------------------------------------------------------------- (DOLLARS IN THOUSANDS)

NUTRITIONAL SOURCING CORPORATION SPECIAL-PURPOSE BALANCE SHEET (Unaudited) ----------------------------------------------------------------------------- (DOLLARS IN THOUSANDS, EXCEPT SHARE DATA)

NUTRITIONAL SOURCING CORPORATION CASH RECEIPTS AND DISBURSEMENTS (Unaudited) ----------------------------------------------------------------------------- (DOLLARS IN THOUSANDS)

NUTRITIONAL SOURCING CORPORATION SUMMARY OF POSTPETITION TAXES FROM THE PERIOD SEPTEMBER 4, 2002 TO OCTOBER 4, 2003 (Unaudited) ----------------------------------------------------------------------------- (DOLLARS IN THOUSANDS)

NUTRITIONAL SOURCING CORPORATION ACCOUNTS RECEIVABLE RECONCILIATION AND AGING (Unaudited) ----------------------------------------------------------------------------- (DOLLARS IN THOUSANDS)

NUTRITIONAL SOURCING CORPORATION SPECIAL-PURPOSE BALANCE SHEET (Unaudited) ----------------------------------------------------------------------------- (DOLLARS IN THOUSANDS, EXCEPT SHARE DATA)

NUTRITIONAL SOURCING CORPORATION CASH RECEIPTS AND DISBURSEMENTS (Unaudited) ----------------------------------------------------------------------------- (DOLLARS IN THOUSANDS)

NUTRITIONAL SOURCING CORPORATION SUMMARY OF POSTPETITION TAXES FROM THE PERIOD SEPTEMBER 4, 2002 TO NOVEMBER 1, 2003 (Unaudited) ----------------------------------------------------------------------------- (DOLLARS IN THOUSANDS)

NUTRITIONAL SOURCING CORPORATION ACCOUNTS RECEIVABLE RECONCILIATION AND AGING (Unaudited) ----------------------------------------------------------------------------- (DOLLARS IN THOUSANDS)

NUTRITIONAL SOURCING CORPORATION SPECIAL-PURPOSE BALANCE SHEET (Unaudited) ----------------------------------------------------------------------------- (DOLLARS IN THOUSANDS, EXCEPT SHARE DATA)

NUTRITIONAL SOURCING CORPORATION CASH RECEIPTS AND DISBURSEMENTS (Unaudited) ----------------------------------------------------------------------------- (DOLLARS IN THOUSANDS)

NUTRITIONAL SOURCING CORPORATION SUMMARY OF POSTPETITION TAXES FROM THE PERIOD SEPTEMBER 4, 2002 TO NOVEMBER 29, 2003 (Unaudited) ----------------------------------------------------------------------------- (DOLLARS IN THOUSANDS)

NUTRITIONAL SOURCING CORPORATION ACCOUNTS RECEIVABLE RECONCILIATION AND AGING (Unaudited) ----------------------------------------------------------------------------- (DOLLARS IN THOUSANDS)

UNITED STATES BANKRUPTCY COURT FOR THE DISTRICT OF DELAWARE CASE NAME: Nutritional Sourcing Corporation CASE NO.: 02-12550 (PJW) -------------------------------- -------------- FOR THE PERIOD SEPTEMBER 4, 2002 TO NOVEMBER 29, 2003 DEBTOR QUESTIONNAIRE 1. Have any assets been sold or transferred outside the normal course of business this reporting period? If yes, provide an explanation below. Yes ( ) No (x) 2. Have any funds been disbursed from any account other than a debtor in possession account this reporting period? If yes, provide an explanation below. Yes (x) No ( ) 3. Have all post petition tax returns been timely filed? If no, provide an explanation below. Yes (x) No ( ) 4. Are worker's compensation, general liability and other necessary insurance coverages in effect? If no, provide an explanation below. Yes (x) No ( ) Explanation to (2) above: The Company's subsidiaries have paid certain professional expenses on behalf of the Company. NUTRITIONAL SOURCING CORPORATION CAUTIONARY STATEMENT WITH RESPECT TO OPERATING REPORTS ------------------------------------------------------------------------------ The Company cautions readers not to place undue reliance upon the information contained in the monthly operating reports ("Operating Reports"). The Operating Reports contain unaudited information, are limited in scope, cover a limited time period and are in a format prescribed by the applicable bankruptcy laws. There can be no assurance that the Operating Reports are complete. The Operating Reports contain information for periods which may be shorter or otherwise different from those contained in the Company's reports pursuant to the Securities Exchange Act of 1934, as amended ("Exchange Act"). Such information may not be indicative of the Company's financial condition or operating results for the periods reflected in the Company's financial statements or in its reports pursuant to the Exchange Act and readers are cautioned to refer to the Exchange Act filings. Moreover, the Operating Reports and other communications from the Company may include forward-looking statements subject to various assumptions regarding the Company's operating performance that may not be realized and are subject to significant business, economic and competitive uncertainties and contingencies, including those described in this report, many of which are beyond the Company's control. Consequently such matters should not be regarded as a representation or warranty by the Company that such matters will be realized or are indicative of the Company's financial condition or operating results for future periods or the periods covered in the Company's reports pursuant to the Exchange Act. Actual results for such periods may differ materially from the information contained in the Operating Reports and the Company undertakes no obligation to update or revise the Operating Reports. The Operating Reports, as well as other statements made by the Company, may contain forward-looking statements that reflect, when made, the Company's current views with respect to current events and financial performance. Such forward-looking statements are and will be, as the case may be, subject to many risks, uncertainties and factors relating to the Company's operations and business environment which may cause the actual results of the Company to be materially different from any future results, express or implied, by such forward-looking statements. Factors that could cause actual results to differ materially from these forward-looking statements include, but are not limited to, the following: the ability of the Company to continue as a going concern; the ability of the Company to fund and execute its business plan; and the ability of the Company to attract, motivate and/or retain key executives and associates. Other risk factors are listed from time to time in the Company's SEC reports, including, but not limited to the Annual Report on Form 10-K for the year ended November 1, 2003, the quarterly report on Form 10-Q for the Company's fiscal quarter ended August 9, 2003, and reports subsequently filed by the Company with the SEC. Nutritional Sourcing Corporation disclaims any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise. Accordingly, the Company urges that the appropriate caution be exercised with respect to existing and future investments in any of these liabilities and/or securities.

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