« 1153860121002000000000001 docket #1118 date filed: … · payment name of payee payment payment....

Case 11-53860-btb Doc 1118 Entered 10/02/12 07:45:17 of 13

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1153860121002000000000001

Docket #1118 Date Filed: 10/2/2012

In re: Ahern Rentals, Inc.Case No.: 11-53860-BTBMonthly Operating Report

August 2012Question 8: Detail listing of payments made on pre-petition debt

Date of Amount of Reason forPayment Name of Payee Payment Payment

See attached Notes to Monthly Operating Report


In re: Ahern Rentals, Inc.Case No.: 11-53860-BTBMonthly Operating Report

August 2012Question 9: Detail listing of payments to professionals


08/03/2012 Gordon Silver 75,882.25 June 2012 billings08/03/2012 DLA Piper 74,729.03 Billings through June 201208/03/2012 Stoel Rives 1,634.40 June 2012 billings08/03/2012 Seaport Group 40,531.60 June 2012 billings08/03/2012 Oppenheimer 47,395.36 June 2012 billings08/28/2012 Covington Burling 59,649.10 July 2012 billings08/03/2012 Downey Brand 4,384.30 May and June 2012 billings08/23/2012 FTI Consulting 52,056.05 July 2012 billings08/23/2012 Kaye Scholer 14,195.50 May 2012 billings08/03/2012 Marotta Gund 676.28 May 2012 billings08/03/2012 Kurtzmann Carson 10,508.43 June 2012 billings08/27/2012 Snell & Wilmer 1,211.20 July 2012 billings


In re: Ahern Rentals, Inc.Case No.: 11-53860-BTB

Monthly Operating ReportAugust 2012

Question 11: Detail listing of payments to officers, insiders, shareholders, relatives


08/07/2012 Tim Lotspeich 2,500.00 Payroll

08/07/2012 Gary Willingham 532.00 Payroll

08/07/2012 Evan Ahern 7,692.31 Payroll

08/07/2012 Howard Brown 3,461.54 Payroll

08/07/2012 John Ahern 2,403.85 Payroll

08/07/2012 Terry Quattrocchi 1,346.15 Payroll

08/07/2012 Ryan Ahern 1,923.08 Payroll

08/07/2012 Fan Chou 1,923.08 Payroll

08/07/2012 Philip Keesling 240.38 Payroll

08/07/2012 Don Ahern 15,846.15 Payroll

08/07/2012 Kirk Hartle 3,846.15 Payroll

08/07/2012 Evan Ahern 16,440.92 Profit commission

08/07/2012 Terry Quattrocchi 7,362.45 Profit commission

08/07/2012 Don Ahern 32,888.50 Profit commission








08/14/2012 Fan Chou 1,923.08 Payroll











08/21/2012 Fan Chou 1,923.08 Payroll











08/28/2012 Fan Chou 1,923.08 Payroll





In re: Ahern Rentals, Inc.Case No.: 11-53860-BTB

Monthly Operating ReportAugust 2012

Question 11: Detail listing of payments to officers, insiders, shareholders, relatives


08/01/2012 DFA, LLC 731,378.50 Rent

08/01/2012 Philip Keesling 24,801.32 Rent

08/01/2012 Xtreme Manufacturing 104,894.45 Parts and rerent expense

08/01/2012 Don & Paul, LLC 56,430.00 Rent

08/02/2012 Xtreme Manufacturing 397,855.66 Parts and equipment for resale

08/06/2012 Fan Chou 886.44 Car allowance and expense reimbursement

08/07/2012 DFA, LLC 1,880.00 Rent for corporate housing

08/07/2012 Xtreme Financial 207.95 Pass through commission

08/07/2012 American Sports Works 547.30 Parts


08/08/2012 Equipment Connections LLC 226.49 Rental commission

08/09/2012 Don Ahern 3,871.76 Employee loan repayments

08/09/2012 Xtreme Financial 2,326.00 Pass through commission

08/09/2012 Diamond A Equipment LLC 35,617.45 Parts



08/15/2012 Xtreme Manufacturing 164,557.20 Parts, rerents, and equipment

08/15/2012 Equipment Connections LLC 2,072.25 Contract consulting services

08/17/2012 Xtreme Manufacturing 543,146.73 Parts and equipment for resale



08/21/2012 Diamond A Equipment LLC 9,821.13 Parts



08/23/2012 Don F Ahern Family Limited 38,406.00 Rent


08/28/2012 Xtreme Financial 775.96 Pass through commission


08/29/2012 Xtreme Manufacturing 196,957.52 Parts, rerents, and equipment

08/30/2012 Equipment Connections LLC 1,498.50 Contract consulting services

08/31/2012 DFA, LLC 1,440.00 Rent for corporate housing

08/31/2012 Diamond A Equipment LLC 819,584.83 Equipment


STATEMENT OF OPERATIONS (General Business Case)

For the Month Ended 08/31/12

Current Month

ActualCumulative

(Case to Date)Revenues:

1 Gross Sales $33,541,711 $253,027,0432 less: Sales Returns & Allowances3 Net Sales $33,541,711 $253,027,0434 less: Cost of Goods Sold (Schedule 'B') $05 Gross Profit $33,541,711 $253,027,0436 Interest7 Other Income: Other, net $11,211 $74,07389

10 Total Revenues $33,552,922 $253,101,116

Expenses:11 Compensation to Owner(s)/Officer(s)12 Salaries13 Commissions14 Contract Labor

1516 Real Property17 Insurance18 Management Fees19 Depreciation $7,134,197 $60,700,843

2021 Real Property Taxes22 Other Taxes23 Other Selling24 Other Administrative25 Interest26 Other Expenses: 27 Cost of equipment rental operations $15,273,358 $120,064,52028 Cost of rental equipment sales $587,293 $5,370,91429 Cost of new equipment sales and other $1,797,718 $11,271,34130 Selling, general & administrative $5,488,459 $45,658,94231 Lease exit costs $46,920 $601,203323334 Interest expense $5,074,920 $41,562,597

35 Total Expenses $35,402,865 $285,230,360

36 Subtotal ($1,849,943) ($32,129,244)

37 ($480,808) ($5,375,402)38 Provisions for Rejected Executory Contracts39 Interest Earned on Accumulated Cash from

Resulting Chp 11 Case 40 Gain or (Loss) from Sale of Equipment41 U.S. Trustee Quarterly Fees $0 ($70,400)42

43 Total Reorganization Items ($480,808) ($5,445,802)

44 Net Profit (Loss) Before Federal & State Taxes ($2,330,751) ($37,575,046)45 Federal & State Income Taxes

46 Net Profit (Loss) ($2,330,751) ($37,575,046)

Rent/Lease: Personal Property

Taxes: Employer Payroll Taxes

Reorganization Items: Professional Fees

Revised 1/1/98


BALANCE SHEET(General Business Case)

08/31/12

AssetsFrom Schedules Book Value

Current Assets

1 Cash and cash equivalents - unrestricted2 Cash and cash equivalents - restricted $2,267,6303 Accounts receivable (net) A $65,427,7944 Inventory B $29,657,3605 Prepaid expenses $4,068,8546 Professional retainers $624,4227 Other: Deposits $6,268,0438

9 Total Current Assets $108,314,103

Property and Equipment (Book Value)

10 Real property C $011 Machinery and equipment D $264,836,12812 Furniture and fixtures D $9,116,29913 Office equipment D $014 Leasehold improvements D $28,993,46715 Vehicles D $20,021,34616 Other: D17 D18 D19 D20 D

21 Total Property and Equipment $322,967,240

Other Assets

22 Loans to shareholders23 Loans to affiliates24 Debt issuance costs $6,316,52425 Other $3,766,5892627

28 Total Other Assets $10,083,113

29 Total Assets $441,364,456

For the Month Ended

Revised 1/1/98


Liabilities and Equity(General Business Case)

Liabilities From Schedules

Post-Petition

Current Liabilities

30 Salaries and wages $2,404,86131 Payroll taxes $225,56132 Real and personal property taxes $2,067,53733 Income taxes $034 Sales taxes $2,424,78235 Notes payable (short term)36 Accounts payable (trade) A $12,284,38937 Real property lease arrearage38 Personal property lease arrearage39 Accrued professional fees40 Current portion of long-term post-petition debt (due within 12 months)41 Other: Insurance and other $3,866,69542 Interest payable (see attached notes to MOR) $19,739,37443 Lease exit costs $1,172,014

44 Total Current Liabilities $44,185,213

45 Long-Term Post-Petition Debt, Net of Current Portion $233,182,273

46 Total Post-Petition Liabilities $277,367,486

Pre-Petition Liabilities

47 Secured claims F $379,244,08648 Priority unsecured claims F $15,30749 General unsecured claims F $4,072,988

50 Total Pre-Petition Liabilities $383,332,381

51 Total Liabilities $660,699,867

Equity (Deficit)

52 Retained Earnings/(Deficit) at time of filing ($184,866,047)53 Capital Stock $5,915,21454 Additional paid-in capital55 Cumulative profit/(loss) since filing of case ($37,575,046)56 Post-petition contributions/(distributions) or (draws)57 Year end 2011 audit adjustments ($2,809,532)58 Market value adjustment

59 Total Equity (Deficit) ($219,335,411)

60 Total Liabilities and Equity (Deficit) $441,364,456

Revised 1/1/98


SCHEDULES TO THE BALANCE SHEET(General Business Case)

Schedule AAccounts Receivable and (Net) Payable

Receivables and Payables AgingsAccounts Receivable

[Pre and Post Petition]Accounts Payable

[Post Petition]Past Due

Post Petition Debt0 -30 Days $30,363,041 $10,663,72031-60 Days $15,094,655 $1,020,50061-90 Days $6,925,450 $391,130 $1,620,66991+ Days $17,036,264 $209,039Total accounts receivable/payable $69,419,410 $12,284,389Allowance for doubtful accounts $3,991,616Accounts receivable (net) $65,427,794

Schedule BInventory/Cost of Goods Sold

Types and Amount of Inventory(ies) Cost of Goods SoldInventory(ies)

Balance atEnd of Month Inventory Beginning of Month

Add - Retail/Restaurants - Net purchase Product for resale Direct labor

Manufacturing overheadDistribution - Freight in Products for resale $29,657,360 Other:

Manufacturer - Raw Materials Work-in-progress Less - Finished goods Inventory End of Month

ShrinkageOther - Explain Personal Use

Cost of Goods Sold $0 TOTAL $29,657,360

Method of Inventory Control Inventory Valuation MethodsDo you have a functioning perpetual inventory system? Indicate by a checkmark method of inventory used.

Yes X NoHow often do you take a complete physical inventory? Valuation methods -

FIFO cost Weekly See attached Notes to MOR LIFO cost Monthly Lower of cost or market Quarterly Retail method Semi-annually Other X Annually Explain

Date of last physical inventory was See attached Notes to MOR See attached Notes to MOR

Date of next physical inventory is See attached Notes to MOR

Revised 1/1/98


Description Cost Market ValueNONE

Total $0 $0

Description Cost Book ValueMachinery & Equipment -

Rental equipment, net $264,836,128 $264,836,128

Total $264,836,128 $264,836,128

Furniture & Fixtures -Other property and equipment, net $9,116,299 $9,116,299

Total $9,116,299 $9,116,299

Office Equipment -$0

Total $0 $0

Leasehold Improvements -Leasehold improvements, net $26,395,428 $26,395,428Construction in progress $2,598,039 $2,598,039

Total $28,993,467 $28,993,467

Vehicles -Transportation equipment, net $20,021,346 $20,021,346

Total $20,021,346 $20,021,346

Schedule CReal Property

Schedule DOther Depreciable Assets

Revised 1/1/98


STATEMENT OF CASH RECEIPTS AND DISBURSEMENTSIncrease/(Decrease) in Cash and Cash Equivalents

For the Month Ended 08/31/12

ActualCurrent Month

Cumulative(Case to Date)

Cash Receipts1 Rent/Leases Collected2 Cash Received from Sales $33,586,005 $270,080,5743 Interest Received4 Borrowings $32,868,783 $480,836,3695 Funds from Shareholders, Partners, or Other Insiders6 Capital Contributions7891011

12 Total Cash Receipts $66,454,788 $750,916,943

Cash Disbursements13 Payments for Inventory14 Selling15 Administrative16 Capital Expenditures $4,697,694 $24,457,90417 Principal Payments on Debt $34,220,716 $508,864,07718 Interest Paid $2,463,654 $18,224,667

Rent/Lease:19 Personal Property20 Real Property $1,174,975 $9,679,838

Amount Paid to Owner(s)/Officer(s)21 Salaries22 Draws23 Commissions/Royalties24 Expense Reimbursements25 Other26 Salaries/Commissions (less employee withholding) $6,846,415 $50,185,32127 Management Fees

Taxes:28 Employee Withholding29 Employer Payroll Taxes $2,553,084 $20,533,33730 Real Property Taxes31 Other Taxes $3,181,869 $23,195,72432 Other Cash Outflows:33 Operating disbursements $7,154,874 $55,683,94434 Other selling, general, and administrative $2,084,058 $15,738,75035 Equipment held for sale $371,998 $5,222,71236 Insurance $1,262,986 $9,585,20337 Restructuring expenses $390,393 $10,696,144

38 Total Cash Disbursements: $66,402,716 $752,067,621

39 Net Increase (Decrease) in Cash $52,072 ($1,150,678)

40 Cash Balance, Beginning of Period $2,215,557 $3,418,307

41 Cash Balance, End of Period $2,267,629 $2,267,629

Revised 1/1/98


In re: AHERN RENTALS, INC. Case No.: 11‐53860‐BTB

MONTHLY OPERATING REPORT GENERAL NOTES August 2012

Basis of Presentation

The financial statements and related information contained herein are unaudited, preliminary, and may not comply with generally accepted accounting principles in the United States of America (“U.S. GAAP”) in all material respects. The unaudited financial statements have been derived from the books and records of the Debtor. The financial information furnished herein includes normal recurring adjustments necessary for a fair statement of the results for the period. The results of operations presented herein are not necessarily indicative of results that may be expected for any other period.

Method of Inventory Control and Accounting

Parts managers at each of Debtor’s branches perform a daily cycle count of at least 1% of inventory (not including rental equipment) so that a full cycle count is completed in approximately 6 months. Branch managers perform a monthly inventory count of all rental equipment assigned to their branch. Additionally, Debtor’s Internal Audit department performs test counts of inventories during routine branch audits and ensures compliance with Debtor’s inventory policies.

Debtor’s inventories (not including rental equipment) are valued at the lower of market or cost determined by the average cost method, except to new serialized equipment units held for sale, the cost of which is determined using the specific identification method.

Bank Accounts and Reconciliation – Schedule H

The Debtor has, on a timely basis, completed all bank account reconciliations in the ordinary course of business. Copies of bank statements, check registers, and reconciliations are available for inspections upon request by the United States Trustee’s Office.

The Debtor’s bank account structure is fairly complex and the amounts reflected as Cash in Bank on Debtor’s Balance Sheet are comprised of either deposits in transit or amounts drawn on the DIP Credit Facility to fund for disbursements, and until the disbursement clears the bank, this funding will show as cash in bank. The structure of the Debtor’s bank accounts is very much like a zero balance sweep structure wherein draws are made on the DIP credit facility to fund disbursements as they occur and the DIP credit facility is paid down as deposits clear the bank and are swept.


In re: AHERN RENTALS, INC. Case No.: 11‐53860‐BTB

MONTHLY OPERATING REPORT GENERAL NOTES August 2012

Interest payable

Interest payable included in the post‐petition liabilities section of the Monthly Operating Report includes the following:

• Accrued and unpaid interest on the DIP revolving credit facility

• Interest accrued post‐petition on the Debtor’s first‐lien last‐out Term Loan (“Term Loan”). The Term Loan and interest accrued pre‐petition on the Term Loan are included in Pre‐petition liabilities – Secured Claims. The Debtor is authorized to pay post‐petition interest on the Term Loan monthly in cash.

• Interest accrued post‐petition on the Debtor’s Second Priority Senior Secured Notes (“2nd Lien Notes”). The 2nd Lien Notes and interest accrued pre‐petition on the 2nd Lien Notes are included in Pre‐petition liabilities – Secured Claims.

It has not been determined by the Bankruptcy Court that all the debt of the Debtor is fully secured and hence may not be entitled to interest. However, in the interest of being conservative, and until such determination is made by the Bankruptcy Court, the financial statements reflect an interest accrual on all debt.

Payments made on pre‐petition debt

The Debtor has paid prepetition obligations since the filing per first day orders and subsequent orders approved by the Bankruptcy Court. Such orders include but are not limited to: employees related obligations, shipping and warehouseman costs, selected customer practices costs, 503 b (9) claims, DIP financing costs and taxes.


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