Tuesday, June 21, 2011

United Reprographics, LLC (Seattle, Wash) in Chapter 11 Bankruptcy (Part 2)

In January 2011, I did a post on this blog about the Chapter 11 filing of United Reprographics, a Seattle, WA area reprographer.

Here’s a link to the post that I did on January 4, 2011:


This morning, 6 1/2 months later, I decided to take a “quick look” at that Chapter 11 case, but, admittedly, I did not do an in depth review of all of the filings in that case since the case was first filed. All I looked at this morning was the most recent (May 2011) Operating Report (and accompanying Exhibits filed with that report.

Apparently, United Reprographics’ “Reorganization Plan” has not yet been confirmed, so that still remains to be done. But, it does look like United Reprographics is doing quite well, especially considering the fact that the A/E/C Industry is still operating well below the level it formerly operated at. If United Reprographics is doing well in the Seattle Market Area, then I would imagine that ARC’s operations are also doing well in that market area, but, of course, that’s just a hunch on my part.

There are two different “Profit & Loss” Reports for May 2011, included in the one file titled “Exhibit B and C – Income & Expense”.

Per the “Accrual Basis” Report:

Sales for May 2011 were $288,000 (prox)

Net Income for May 2011 was reported at $56,000 (prox)

Per the “Cash Basis” Report:

Sales for May 2011 were $286,000 (prox)

Net Income for May 2011 was reported at $73,000 (prox)

United currently (as of the May 2011 Operating Report) employs 22 people, down only 2 from the 24 employees working at the time United first filed Chapter 11.

Based on the accrual basis sales reported for May 2011 and the number of employees reported for May 2011, United is performing extremely well - at a run rate of approximately $157,000 in “sales per employee” (annualized basis.)

According to the “balance sheet” filed for May 2011, United has approximately $380,000 “cash in bank.” Not bad for a company operating under Chapter 11. (The amount reported does not, for some reason, tie into the cash balance reported in the May 2011 Operating Report – the amount of cash on hand reported in the Operating Report was around $321,000.)

Apparently, one of United’s customers, PB Elemental, an architecture firm based in Seattle – and one that, in my opinion, creates amazing architecture – fell on hard times, as a result of the slowdown in the A/E/C Industry – PB Elemental owes United approximately $174,000; that amount is carried on United’s balance sheet as an “other current asset.”

(see story about PB Elemental at this link):


Another “interesting” “other current asset” on United’s balance sheet – a “shareholder loan” in the amount of $592,388. I find myself wondering if that shareholder, whoever it may be, is paying (or being charged) “interest” on that shareholder loan. Perhaps at some point the IRS will consider it compensation to that shareholder and want it included as income on that shareholder’s individual income tax return?

Click on this link to access the “Operating Report” for May 2011:


Click on this link to access the “Balance Sheet” for May 2011:


Click on this link to access the “Income & Expense Report” for May 2011:


No comments:

Post a Comment