PROFESSIONAL VETERINARY PRODUCTS LTD /NE/ - FORM 8-K - EX-99.1 - October 15, 2010

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Exhibit 99.1
IN THE UNITED STATES BANKRUPTCY COURT
FOR THE DISTRICT OF NEBRASKA
         
 
In re:
)      Case No. 10-82436
 
)      
PROFESSIONAL VETERINARY
)      
PRODUCTS, LTD, A NEBRASKA
)     CHAPTER 11
CORPORATION,
)      
 
)      
                                                          Debtor,
)      
 
)      
 
In re:
)      Case No. 10-82438
 
)      
EXACT LOGISTICS, LLC,
)     CHAPTER 11
 
)      
Debtor,
)      
 
)      
 
)      
 
)      
 
In re:
)      Case No. 10-82437
 
)      
PROCONN, LLC,
)     CHAPTER 11
 
)      
Debtor,
)      
 
)      
 
)      
 
)      
 
 )      
MONTHLY OPERATING REPORT FOR THE PERIOD
8/20/2010 THROUGH 9/30/2010
I CERTIFY UNDER PENALTY OF PERJURY THAT THE FOLLOWING OPERATING REPORTS, CONSISTING OF 17 PAGES ARE TRUE AND CORRECT.
         
Date Submitted 10/15/10
       /s/ Stephen J. Price
 
    
 
       Stephen J. Price    

 

United States Trustee Operating Reports
IN THE UNITED STATES BANKRUPTCY COURT
FOR THE DISTRICT OF NEBRASKA
CASE NAME: Summary Report for Professional Veterinary Products, LTD; Exact Logistics, LLC; ProConn, LLC
CASE NO.: 10-82436; 10-82438; 10-82437
Table of Contents
For Period from August 20, 2010 to September 30, 2010
         
Item   Page
Summary of Cash Receipts and Disbursements For The Consolidated Entities of Professional Veterinary Products, LTD; Exact Logistics, LLC; ProConn, LLC
     1  
Summary of Cash Receipts and Disbursements For Professional Veterinary Products, LTD, A Nebraska Corporation
     2  
Summary of Cash Receipts and Disbursements For ProConn, LLC
     3  
Summary of Cash Receipts and Disbursements For Exact Logistics, LLC
     4  
Summary of Significant Items For The Consolidated Entities of Professional Veterinary Products, LTD; Exact Logistics, LLC; ProConn, LLC
     5  
Summary of Accounts Recievable Aging For The Consolidated Entities of Professional Veterinary Products, LTD; Exact Logistics, LLC; ProConn, LLC
     6  
Summary of Accounts Payable and Accrued Expenses For The Consolidated Entities of Professional Veterinary Products, LTD; Exact Logistics, LLC; ProConn, LLC
     7  
Summary of Other Assets For The Consolidated Entities of Professional Veterinary Products, LTD; Exact Logistics, LLC; ProConn, LLC
     8  
Fixed Asset Summary For The Consolidated Entities of Professional Veterinary Products, LTD; Exact Logistics, LLC; ProConn, LLC
     9  
Summary of Paid Bank Fees Consolidated Entities of Professional Veterinary Products, LTD; Exact Logistics, LLC; ProConn, LLC
     10  
Detail Sales and Use Tax Payments for Professional Veterinary Products, LTD
     11  
Detail Sales and Use Tax Payments for ProConn, LLC
     13  
Payroll Tax Payment Detail For the Consolidated Entities of Professional Veterinary Products, LTD; Exact Logistics, LLC; ProConn, LLC
     14  
Summary of Officer Payments For the Consolidated Entities of Professional Veterinary Products, LTD; Exact Logistics, LLC; ProConn, LLC
     15  
Detail Board of Director Payments For the Consolidated Entities of Professional Veterinary Products, LTD; Exact Logistics, LLC; ProConn, LLC
     16  

 

 

IN THE UNITED STATES BANKRUPTCY COURT
FOR THE DISTRICT OF NEBRASKA
CASE NAME: Summary Report for Professional Veterinary Products, LTD; Exact Logistics, LLC; ProConn, LLC
CASE NO.: 10-82436; 10-82438; 10-82437
Summary of Cash Receipts and Disbursements For The Above Noted Consolidated Entities
For Period from August 20, 2010 to September 30, 2010
                                         
    Wells Fargo   FNBO   JP Morgan   Fulton Bank   Total
     
BEGINNING BALANCE (8/20)
   $ 845,196.89     $ 131,968.59     $ 58,422.81     $ 6,063.92     $ 1,041,652.21  
     
 
                                        
RECEIPTS:
                                        
1. Receipts from Operations
     15,809,840.48       914,575.87       0.00       0.00       16,724,416.35  
2. Receipts from Bulk Sale of Inventory (1)
     1,536,411.00       0.00       0.00       0.00       1,536,411.00  
3. Receipts from Sale of Intangible Assets
     0.00       0.00       0.00       0.00       0.00  
4. Other Receipts
     0.00       0.00       0.00       0.00       0.00  
     
TOTAL RECEIPTS
     17,346,251.48       914,575.87       0.00       0.00       18,260,827.35  
     
 
                                        
TRANSFERS:
     (6,651.39 )     (350,000.00 )     356,651.39       0.00       0.00  
     
 
                                        
DISBURSEMENTS:
                                        
3. Line of credit Wells Fargo
     8,380,606.26       0.00       0.00       0.00       8,380,606.26  
 
                                        
4. Payments to Officers and Directors:
                                        
a. Officers
     43,984.79       0.00       0.00       0.00       43,984.79  
b. Directors
     4,600.00       0.00       0.00       0.00       4,600.00  
     
Subtotal — payments to Officers and Directors
     48,584.79       0.00       0.00       0.00       48,584.79  
 
                                        
5. Taxes — personnel
                                        
a. Federal Income Tax
     277,982.50       0.00       0.00       0.00       277,982.50  
b. FICA withholdings
     176,311.21       0.00       0.00       0.00       176,311.21  
c. Medicare
     46,302.82       0.00       0.00       0.00       46,302.82  
d. Federal Unemployment
     40.35       0.00       0.00       0.00       40.35  
e. State Income Tax
     72,974.78       0.00       0.00       0.00       72,974.78  
f. State Unemployment
     86.26       0.00       0.00       0.00       86.26  
g. State Unemployment/Disability
     431.99       0.00       0.00       0.00       431.99  
h. Local Income Tax
     1,387.60       0.00       0.00       0.00       1,387.60  
     
Subtotal — taxes
     575,517.51       0.00       0.00       0.00       575,517.51  
 
                                        
6. Necessary expenses:
                                        
Inventory purchases
     622,754.23       0.00       0.00       0.00       622,754.23  
Freight and supplies
     1,107,143.30       0.00       0.00       0.00       1,107,143.30  
Wages, ETO, Commissions, Incentives
     929,504.73       0.00       0.00       0.00       929,504.73  
Benefits
     68,810.48       0.00       363,854.17       0.00       432,664.65  
Professional and Trustee Fees
     351,139.54       0.00       0.00       0.00       351,139.54  
Credit card fees
     100,176.80       4,709.39       0.00       0.00       104,886.19  
Bayer escrow
     350,000.00       0.00       0.00       0.00       350,000.00  
Payment of Sales Taxes
     298,214.00       112,575.35       0.00       0.00       410,789.35  
Building Expenses
     82,093.31       0.00       0.00       0.00       82,093.31  
Building Lease
     22,078.00       0.00       0.00       0.00       22,078.00  
Equipment Leases and Expenses
     146,219.68       0.00       0.00       0.00       146,219.68  
Utilities Expense
     50,225.58       0.00       0.00       0.00       50,225.58  
Utilities Deposit
     113,917.00       0.00       0.00       0.00       113,917.00  
Insurance
     30,553.35       0.00       0.00       0.00       30,553.35  
Real Estate & Personal Property Taxes
     0.00       0.00       0.00       0.00       0.00  
Accounting and Tax Fees
     0.00       0.00       0.00       0.00       0.00  
Wells Fargo Escrow
     1,381,938.90       0.00       0.00       0.00       1,381,938.90  
Bank Fees/Interest
     334,334.52       992.77       0.00       0.00       335,327.29  
Misc. G&A and Other fees
     371,096.09       1,523.90       0.00       313.89       372,933.88  
     
Subtotal — necessary expenses
     6,360,199.51       119,801.41       363,854.17       313.89       6,844,168.98  
     
 
                                        
TOTAL DISBURSEMENTS
     15,364,908.07       119,801.41       363,854.17       313.89       15,848,877.54  
     
 
                                        
NET CASH FLOW
     1,974,692.02       444,774.46       (7,202.78 )     (313.89 )     2,411,949.81  
     
 
                                        
ENDING BANK BALANCE (9/30)
   $ 2,819,888.91     $ 576,743.05     $ 51,220.03     $ 5,750.03     $ 3,453,602.02  
     
 
                                        
BANK BALANCES
   $ 2,819,888.91     $ 576,743.05     $ 51,220.03     $ 5,750.03     $ 3,453,602.02  
     
 
1.)   Represents inventory sold under a “363 sale process”. The amount shown is gross proceeds received upon that sale. After final inventory counts, it is anticipated that a “refund” will be due to the purchaser of approximately $290,000 sometime in October 2010.

Page 1

 

IN THE UNITED STATES BANKRUPTCY COURT
FOR THE DISTRICT OF NEBRASKA
CASE NAME: Professional Veterinary Products, LTD, A Nebraska Corporation
CASE NO.: 10-82436
Summary of Cash Receipts and Disbursements For The Above Noted Entity
For Period from August 20, 2010 to September 30, 2010
                                         
    Wells Fargo   FNBO   JP Morgan   Fulton Bank   Total
     
BEGINNING BALANCE (8/20)
   $ 845,196.89     $ 131,968.59     $ 58,422.81     $ 6,063.92     $ 1,041,652.21  
 
                                        
RECEIPTS:
                                        
1. Receipts from Operations
     11,053,655.29       914,575.87               0.00       11,968,231.16  
2. Receipts from Bulk Sale of Inventory (1)
     1,536,411.00                               1,536,411.00  
3. Receipts from Sale of Intangible Assets
                                     0.00  
4. Other Receipts
                                     0.00  
     
TOTAL RECEIPTS
     12,590,066.29       914,575.87       0.00       0.00       13,504,642.16  
     
 
                                        
TRANSFERS:
     4,725,341.84       (351,890.53 )     356,651.39       0.00       4,730,102.70  
     
 
                                        
DISBURSEMENTS:
                                        
3. Line of credit Wells Fargo
     8,380,606.26                               8,380,606.26  
 
                                        
4. Payments to Officers and Directors:
                                        
a. Officers
     43,984.79                               43,984.79  
b. Directors
     4,600.00                               4,600.00  
     
Subtotal — payments to Officers and Directors
     48,584.79       0.00       0.00       0.00       48,584.79  
 
                                        
5. Taxes — personnel
                                        
a. Federal Income Tax
     277,982.50                               277,982.50  
b. FICA withholdings
     176,311.21                               176,311.21  
c. Medicare
     46,302.82                               46,302.82  
d. Federal Unemployment
     40.35                               40.35  
e. State Income Tax
     72,974.78                               72,974.78  
f. State Unemployment
     86.26                               86.26  
g. State Unemployment/Disability
     431.99                               431.99  
h. Local Income Tax
     1,387.60                               1,387.60  
     
Subtotal — taxes
     575,517.51       0.00       0.00       0.00       575,517.51  
 
                                        
6. Necessary expenses:
                                        
Inventory purchases
     622,754.23                               622,754.23  
Freight and supplies
     1,107,143.30                               1,107,143.30  
Wages, ETO, Commissions, Incentives
     929,504.73                               929,504.73  
Benefits
     68,810.48               363,854.17               432,664.65  
Professional and Trustee Fees
     351,139.54                               351,139.54  
Credit card fees
     100,176.80       4,709.39                       104,886.19  
Bayer escrow
     350,000.00                               350,000.00  
Payment of Sales Taxes
     274,022.04       110,684.82                       384,706.86  
Building Expenses
     82,093.31                               82,093.31  
Building Lease
     22,078.00                               22,078.00  
Equipment Leases and Expenses
     146,219.68                               146,219.68  
Utilities Expense
     50,225.58                               50,225.58  
Utilities Deposit
     113,917.00                               113,917.00  
Insurance
     30,553.35                               30,553.35  
Real Estate & Personal Property Taxes
     0.00                               0.00  
Accounting and Tax Fees
     0.00                               0.00  
Wells Fargo Escrow
     1,381,938.90                               1,381,938.90  
Bank Fees/Interest
     334,334.52       992.77                       335,327.29  
Misc. G&A and Other fees
     371,096.09       1,523.90               313.89       372,933.88  
     
Subtotal — necessary expenses
     6,336,007.55       117,910.88       363,854.17       313.89       6,818,086.49  
     
 
                                        
TOTAL DISBURSEMENTS
     15,340,716.11       117,910.88       363,854.17       313.89       15,822,795.05  
     
 
                                        
NET CASH FLOW
     1,974,692.02       444,774.46       (7,202.78 )     (313.89 )     2,411,949.81  
     
 
                                        
ENDING BANK BALANCE (9/30)
   $ 2,819,888.91     $ 576,743.05     $ 51,220.03     $ 5,750.03     $ 3,453,602.02  
     
 
                                        
BANK BALANCES
   $ 2,819,888.91     $ 576,743.05     $ 51,220.03     $ 5,750.03     $ 3,453,602.02  
     
 
1.)   Represents inventory sold under a “363 sale process”. The amount shown is gross proceeds received upon that sale. After final inventory counts, it is anticipated that a “refund” will be due to the purchaser of approximately $290,000 sometime in October 2010.

Page 2

 

IN THE UNITED STATES BANKRUPTCY COURT
FOR THE DISTRICT OF NEBRASKA
CASE NAME: ProConn, LLC
CASE NO.: 10-82437
Summary of Cash Receipts and Disbursements For The Above Noted Entity
For Period from August 20, 2010 to September 30, 2010
                                         
    Wells Fargo   FNBO   JP Morgan   Fulton Bank   Total
     
BEGINNING BALANCE (8/20)
   $ 0.00     $ 0.00     $ 0.00     $ 0.00     $ 0.00  
 
                                        
RECEIPTS:
                                        
1. Receipts from Operations
     4,742,097.40                               4,742,097.40  
2. Receipts from Bulk Sale of Inventory
                                     0.00  
3. Receipts from Sale of Intangible Assets
                                     0.00  
4. Other Receipts
                                     0.00  
     
TOTAL RECEIPTS
     4,742,097.40       0.00       0.00       0.00       4,742,097.40  
     
 
                                        
TRANSFERS:
     (4,717,905.44 )     1,890.53                       (4,716,014.91 )
     
 
                                        
DISBURSEMENTS:
                                        
3. Line of credit Wells Fargo
                                     0.00  
 
                                        
4. Payments to Officers and Directors:
                                        
a. Officers
                                     0.00  
b. Directors
                                     0.00  
     
Subtotal — payments to Officers and Directors
     0.00       0.00       0.00       0.00       0.00  
 
                                        
5. Taxes — personnel
                                        
a. Federal Income Tax
                                     0.00  
b. FICA withholdings
                                     0.00  
c. Medicare
                                     0.00  
d. Federal Unemployment
                                     0.00  
e. State Income Tax
                                     0.00  
f. State Unemployment
                                     0.00  
g. State Unemployment/Disability
                                     0.00  
h. Local Income Tax
                                     0.00  
     
Subtotal — taxes
     0.00       0.00       0.00       0.00       0.00  
 
                                        
6. Necessary expenses:
                                        
Inventory purchases
                                     0.00  
Freight and supplies
                                     0.00  
Wages, ETO, Commissions, Incentives
                                     0.00  
Benefits
                                     0.00  
Professional and Trustee Fees
                                     0.00  
Credit card fees
                                     0.00  
Bayer escrow
                                     0.00  
Payment of Sales Taxes
     24,191.96       1,890.53                       26,082.49  
Building Expenses
                                     0.00  
Building Lease
                                     0.00  
Equipment Leases and Expenses
                                     0.00  
Utilities Expense
                                     0.00  
Utilities Deposit
                                     0.00  
Insurance
                                     0.00  
Real Estate & Personal Property Taxes
                                     0.00  
Accounting and Tax Fees
                                     0.00  
Wells Fargo Escrow
                                     0.00  
Bank Fees/Interest
                                     0.00  
Misc. G&A and Other fees
                                     0.00  
     
Subtotal — necessary expenses
     24,191.96       1,890.53       0.00       0.00       26,082.49  
     
 
                                        
TOTAL DISBURSEMENTS
     24,191.96       1,890.53       0.00       0.00       26,082.49  
     
 
                                        
NET CASH FLOW
     (0.00 )     0.00       0.00       0.00       0.00  
     
 
                                        
ENDING BANK BALANCE (9/30)
   $ (0.00 )   $ 0.00     $ 0.00     $ 0.00     $ (0.00 )
     
 
                                        
BANK BALANCES
   $ 0.00     $ 0.00     $ 0.00     $ 0.00     $ 0.00  
     

Page 3

 

IN THE UNITED STATES BANKRUPTCY COURT
FOR THE DISTRICT OF NEBRASKA
CASE NAME: Exact Logistics, LLC
CASE NO.: 10-82438
Summary of Cash Receipts and Disbursements For The Above Noted Entity
For Period from August 20, 2010 to September 30, 2010
                                         
    Wells Fargo   FNBO   JP Morgan   Fulton Bank   Total
     
BEGINNING BALANCE (8/20)
   $ 0.00     $ 0.00     $ 0.00     $ 0.00     $ 0.00  
 
                                        
RECEIPTS:
                                        
1. Receipts from Operations
     14,087.79                               14,087.79  
2. Receipts from Bulk Sale of Inventory
                                     0.00  
3. Receipts from Sale of Intangible Assets
                                     0.00  
4. Other Receipts
                                     0.00  
     
TOTAL RECEIPTS
     14,087.79       0.00       0.00       0.00       14,087.79  
     
 
                                        
TRANSFERS:
     (14,087.79 )                             (14,087.79 )
     
 
                                        
DISBURSEMENTS:
                                        
3. Line of credit Wells Fargo
                                     0.00  
 
                                        
4. Payments to Officers and Directors:
                                        
a. Officers
                                     0.00  
b. Directors
                                     0.00  
     
Subtotal — payments to Officers and Directors
     0.00       0.00       0.00       0.00       0.00  
 
                                        
5. Taxes — personnel
                                        
a. Federal Income Tax
                                     0.00  
b. FICA withholdings
                                     0.00  
c. Medicare
                                     0.00  
d. Federal Unemployment
                                     0.00  
e. State Income Tax
                                     0.00  
f. State Unemployment
                                     0.00  
g. State Unemployment/Disability
                                     0.00  
h. Local Income Tax
                                     0.00  
     
Subtotal — taxes
     0.00       0.00       0.00       0.00       0.00  
 
                                        
6. Necessary expenses:
                                        
Inventory purchases
                                     0.00  
Freight and supplies
                                     0.00  
Wages, ETO, Commissions, Incentives
                                     0.00  
Benefits
                                     0.00  
Professional and Trustee Fees
                                     0.00  
Credit card fees
                                     0.00  
Bayer escrow
                                     0.00  
Payment of Sales Taxes
                                     0.00  
Building Expenses
                                     0.00  
Building Lease
                                     0.00  
Equipment Leases and Expenses
                                     0.00  
Utilities Expense
                                     0.00  
Utilities Deposit
                                     0.00  
Insurance
                                     0.00  
Real Estate & Personal Property Taxes
                                     0.00  
Accounting and Tax Fees
                                     0.00  
Wells Fargo Escrow
                                     0.00  
Bank Fees/Interest
                                     0.00  
Misc. G&A and Other fees
                                     0.00  
     
Subtotal — necessary expenses
     0.00       0.00       0.00       0.00       0.00  
     
 
                                        
TOTAL DISBURSEMENTS
     0.00       0.00       0.00       0.00       0.00  
     
 
                                        
NET CASH FLOW
     0.00       0.00       0.00       0.00       0.00  
     
 
                                        
ENDING BANK BALANCE (9/30)
   $ 0.00     $ 0.00     $ 0.00     $ 0.00     $ 0.00  
     
 
                                        
BANK BALANCES
   $ 0.00     $ 0.00     $ 0.00     $ 0.00     $ 0.00  
     

Page 4

 

CASE NAME: Professional Veterinary Products, LTD; Exact Logistics, LLC; ProConn, LLC
CASE NO.: 10-82436; 10-82438; 10-82437
Summary of Significant Items
For the Period from August 20, 2010 — September 30, 2010
Insurance Coverage
                         
                    Policy expiration
Type   Carrier/agent   Amount of coverage   date
Blanket Real & Personal Property
   Liberty Mutual Insurance Co.     54,571,731.00       12/20/2010  
General Liability:
                        
Each occurrence
   Liberty Mutual Insurance Co.     1,000,000.00       12/20/2010  
Damage to intended premises
   Liberty Mutual Insurance Co.     300,000.00       12/20/2010  
Medical expense any one person
   Liberty Mutual Insurance Co.     10,000.00       12/20/2010  
Personal injury
   Liberty Mutual Insurance Co.     1,000,000.00       12/20/2010  
General aggregate
   Liberty Mutual Insurance Co.     2,000,000.00       12/20/2010  
Products
   Liberty Mutual Insurance Co.     2,000,000.00       12/20/2010  
Automobile
   Liberty Mutual Insurance Co.     1,000,000.00       12/20/2010  
Umbrella
   AIG American Int’l Group     10,000,000.00       12/20/2010  
Workers Comp
   Liberty Mutual Insurance Co.     500,000.00       12/20/2010  
Employee theft
   Liberty Mutual Insurance Co.     1,000,000.00       12/20/2010  
Forgery or alteration
   Liberty Mutual Insurance Co.     500,000.00       12/20/2010  
Money inside premises
   Liberty Mutual Insurance Co.     5,000.00       12/20/2010  
 
                        
Total
             73,886,731.00          
 
                        
Statement of Payments of Secured Creditors
                         
Payee   Description   Amount   Date
Wells Fargo
   Line of credit/DIP     8,380,606.26     Various
Wells Fargo
   Various     334,334.52     Various
 
                        
Total
             8,714,940.78          
 
                        
Tax Payments
                 
Type   Amount   Date
Personnel related taxes:
                
a. Federal Income Tax
     277,982.50     Various
b. FICA withholdings
     176,311.21     Various
c. Medicare
     46,302.82     Various
d. Federal Unemployment
     40.35     Various
e. State Income Tax
     72,974.78     Various
f. State Unemployment
     86.26     Various
g. State Unemployment/Disability
     431.99     Various
h. Local Income Tax
     1,387.60     Various
 
                
 
     575,517.51          
Sales & use taxes
     410,789.35     Various
 
                
Total
     986,306.86          
 
                
Compensation Payments — Officers, Directors
                 
Payee   Amount   Date
Steve Price
     29,967.26     Various
Jamie Meadows
     14,017.53     Various
 
                
Total
     43,984.79          
 
                
 
Payments to Directors
     4,600.00          
 
                
Payments to Professionals
                 
Payee   Amount   Date
McGrath North (pre-petition payments clearing bank 8-20-10)
     98,386.00       8/20/2010  
Alliance Management
     97,201.04       9/29/2010  
Marvin E Jewell
     90,000.00       8/30/2010  
Baird Holm LLP (pre-petition payments clearing bank 8-20-10)
     65,552.50       8/19/2010  
 
                
Total
     351,139.54          
 
                

Page 5

 

CASE NAME: Professional Veterinary Products, LTD; Exact Logistics, LLC; ProConn, LLC
CASE NO.: 10-82436; 10-82438; 10-82437
Summary Accounts Receivable Aging
As of August 31, 2010 and September 30, 2010
                                                 
    Current   < 30   > 30   >60   >90   Total
August 20, 2010
     9,087,024       5,840,755       1,979,239       205,181       773,938       17,886,137  
% of total
     50.8 %     32.7 %     11.1 %     1.1 %     4.3 %     100.0 %
 
                                                
September 30, 2010
     1,039,687       2,349,487       2,616,446       474,236       761,253       7,241,108  
% of total
     14.4 %     32.4 %     36.1 %     6.5 %     10.5 %     100.0 %

Page 6

 

CASE NAME: Professional Veterinary Products, LTD; Exact Logistics, LLC; ProConn, LLC
CASE NO.: 10-82436; 10-82438; 10-82437
Summary of Accounts Payable
As of September 30, 2010 (Except Where Noted)
                         
    Pre-petition   Post-petition   Total (1)
     
Accounts Payable, Trade
     23,688,467.52       528,391.08       24,216,858.60  
Accounts Payable, Not Vouchered
     246,917.32       248,655.41       495,572.73  
     
Total
     23,935,384.84       777,046.49       24,712,431.33  
     
Summary of Accrued, Contingent and Unliquidated Liabilities
As of September 30, 2010 (Except Where Noted)
         
Accrued Social Security
     20,137.43  
Accrued Medicare Tax
     4,709.56  
Accrue Wages
     363,103.70  
Accrued 401(k)Contribution
     (10,525.83 )
Accrued SERP — Current
     242,706.00  
Accrued UHC Claims Liability
     226,121.00  
Accrued Sales Tax-Vertex
     7,923.42  
Accrued Personal Property
     26,920.79  
Accrued Real Estate Tax
     121,055.02  
Accrued Misc Expenses
     191.63  
Vendor Advances
     180,611.75  
Accrued Exec Retirement Plan
     3,069,110.40  
 
        
Total
     4,252,064.87  
 
        
 
(1)   The amounts noted above are estimates as the financial statements have not been closed for the period ending September 30, 2010. Amounts above not reduced for vendor escrow.

Page 7

 

CASE NAME: Professional Veterinary Products, LTD; Exact Logistics, LLC; ProConn, LLC
CASE NO.: 10-82436; 10-82438; 10-82437
Summary of Other Assets
As of August 31, 2010 and September 30, 2010
                 
            Estimated
    Book Value   Book Value
    8/31/2010 (2)   9/30/2010 (1) (2)
     
AR — Manufacturer’s Income
     1,502,405.15       1,502,405.15  
Investment in AgriLabs stock
     442,200.00       442,200.00  
Cash value of life insurance
     3,024,099.35       3,024,099.35  
Deposits
     7,558.50       7,558.50  
     
Total Other Assets
     4,976,263.00       4,976,263.00  
     
 
(1)   The amounts noted above are estimates as the financial statements have not been closed for the period ending September 30, 2010.
 
(2)   Investment in AgriLabs stock stated at AgriLabs book value/share as of 7/31/10.

Page 8

 

CASE NAME: Professional Veterinary Products, LTD; Exact Logistics, LLC; ProConn, LLC
CASE NO.: 10-82436; 10-82438; 10-82437
Fixed Assets Summary
As of August 31, 2010 and September 30, 2010
                                                 
    8/31/10   9/30/10 (1) (2)
    PVP   ProConn   Total   PVP   ProConn   Total
         
Land
     1,762,203.35               1,762,203.35       1,762,203.35               1,762,203.35  
Buildings
     5,217,204.96               5,217,204.96       5,217,204.96               5,217,204.96  
Improvements
     606,379.08               606,379.08       585,766.72               585,766.72  
Equipment/software
     10,129,917.95       323,630.21       10,453,548.16       7,358,196.27       306,329.03       7,664,525.30  
         
Fixed Assets
     17,715,705.34       323,630.21       18,039,335.55       14,923,371.30       306,329.03       15,229,700.33  
 
                                                
Accum. Depreciation
     (10,627,946.57 )     (227,648.99 )     (10,855,595.56 )     (8,000,675.38 )     (212,228.84 )     (8,212,904.22 )
         
 
                                                
Net Fixed Assets, 9-30-10
     7,087,758.77       95,981.22       7,183,739.99       6,922,695.92       94,100.20       7,016,796.11  
         
 
                                                
Asset Sales:
                                                
Fixed Assets
     0.00       0.00       0.00       2,206,283.33       0.00       2,206,283.33  
Accum. Depreciation
     0.00       0.00       0.00       (2,084,683.16 )     0.00       (2,084,683.16 )
         
Net Fixed Assets
     0.00       0.00       0.00       121,600.17       0.00       121,600.17  
         
 
                                                
Post Asset Sales:
                                                
Fixed Assets
     17,715,705.34       323,630.21       18,039,335.55       12,717,087.97       306,329.03       13,023,417.00  
Accum. Depreciation
     (10,627,946.57 )     (227,648.99 )     (10,855,595.56 )     (5,915,992.22 )     (212,228.84 )     (6,128,221.06 )
         
Net Fixed Assets
     7,087,758.77       95,981.22       7,183,739.99       6,801,095.75       94,100.20       6,895,195.94  
         
 
(1)   The amounts noted above are estimates as the financial statements have not been closed for the period ending September 30, 2010. Other certain fixed assets have been sold, but sale process and collection has not commenced as of September 30, 2010
 
(2)   September 2010 appraisal of building and vacant land of $7,675,000.

Page 9

 

CASE NAME: Professional Veterinary Products, LTD; Exact Logistics, LLC; ProConn, LLC
CASE NO.: 10-82436; 10-82438; 10-82437
Summary of Paid Bank Fees
August 20, 2010 through September 30, 2010
             
Date   Description   Amount
 
8/27/2010  
DIP Facility Fee (Wells Fargo)
     75,000.00  
9/1/2010  
August Interest of $99,771.46 on LOC, Unused Line Fees of $11,401.49, UCC Filing fees of $275.00 (Wells Fargo)
     111,447.95  
9/1/2010  
August Interest charge on DIP Facility (Wells Fargo)
     3,740.98  
9/10/2010  
Reserve for Purchase Cards held in segregated account (Wells Fargo)
     100,000.00  
9/13/2010  
Bank Service Charge — Client Analysis (Wells Fargo)
     9,442.10  
9/22/2010  
Inventory Appraisal Fee of $14,000, Real Estate Appraisal Fee of $4,170; Prepetition Legal Fees of $4,168.49 (Wells Fargo)
     22,338.49  
9/27/2010  
September Interest of $12,365 (Wells Fargo)
     12,365.00  
   
 
        
Total  
 
     334,334.52  
   
 
        
Summary of Bank Escrow for Claimed Fees
August 20, 2010 through September 30, 2010
             
Date   Description of Claimed Fees   Amount
 
9/27/2010  
Legal Fees (Held in segregated account) of $120,000.00
     120,000.00  
9/27/2010  
Unused Line Fee August 21 through August 31, 2010 (Wells Fargo)
     4,045.69  
9/27/2010  
Unused Line Fee September (Wells Fargo)
     15,423.00  
9/27/2010  
Collateral Exam fees (Wells Fargo
     17,470.21  
9/27/2010  
Termination and Line Reduction fees (Wells Fargo)
     1,200,000.00  
9/27/2010  
Treasury Management Fees (Wells Fargo)
     25,000.00  
   
 
        
Total  
 
     1,381,938.90  
   
 
        

Page 10

 

CASE NAME: Professional Veterinary Products, LTD
CASE NO.: 10-82436
Detail Sales and Use Tax Payments
August 20, 2010 through September 30, 2010
             
Date   Payee     Amount
 
8/20/2010
  Ohio State Treasurer     19,024.97  
8/20/2010
  Pennsylvania Dept of Revenue     9,133.39  
8/23/2010
  Illinois Department Of Revenue     6,590.00  
8/24/2010
  Kansas Department of Revenue     5,158.38  
8/24/2010
  New York Sales Tax Processing     26,759.36  
8/24/2010
  Jackson Services Inc     5.34  
8/25/2010
  Nebraska Department Of Revenue     41,000.49  
8/25/2010
  Nebraska Revenue     32,351.01  
8/25/2010
  Nebraska Revenue     (86.07 )
8/25/2010
  Nebraska Revenue     8,811.75  
8/26/2010
  Kansas Dept of Revenue     5,305.56  
8/26/2010
  Kansas Dept of Revenue     1,500.00  
8/26/2010
  Kansas Dept of Revenue     (1,500.00 )
8/26/2010
  Ohio Sales Tax     19,588.29  
8/26/2010
  Ohio Sales Tax     (20.29 )
8/26/2010
  Ohio Sales Tax     (16,181.30 )
8/26/2010
  Ohio Sales Tax     15,784.78  
8/27/2010
  Staples Advantage     8.48  
8/27/2010
  New York State     10,257.40  
8/27/2010
  New York State     16,501.96  
8/30/2010
  South Dakota Department of Rev     880.32  
8/31/2010
  Illinois Department Of Revenue     6,590.00  
9/1/2010
  Commonwealth of Kentucky     18,371.73  
9/3/2010
  Staples Advantage     42.64  
9/3/2010
  Staples Advantage     2.13  
9/3/2010
  Staples Advantage     3.16  
9/7/2010
  Illinois Department Of Revenue     6,395.00  
9/8/2010
  Oklahoma Tax Commission     437.59  
9/10/2010
  Young Leasing, Inc.     13.75  
9/10/2010
  Healthcare Computer Corporation     3.60  
9/10/2010
  Healthcare Computer Corporation     10.73  
9/13/2010
  Tax Trust Acct     37.06  
9/15/2010
  Alabama Department of Revenue     12.11  
9/15/2010
  Arkansas Department of Finance     7,888.00  
9/15/2010
  Florida Department of Revenue     596.04  
9/15/2010
  Georgia Department of Revenue     2,841.50  
9/15/2010
  Illinois Department Of Revenue     6,395.00  
9/15/2010
  Indiana Department of Revenue     2,940.53  
9/15/2010
  Iowa Department of Revenue     1,275.00  
9/15/2010
  Kentucky Dept of Revenue     10,518.06  
9/15/2010
  Maryland Comptroller     131.85  
9/15/2010
  Massachusetts Department of Re     1,125.25  
9/15/2010
  Minnesota Department of Revenue     2,174.00  
9/15/2010
  Mississippi State Tax Commission     947.00  
9/15/2010
  New Jersey Sales & Use Tax     1,247.56  
9/15/2010
  North Carolina Department of R     2,109.41  
9/15/2010
  Oklahoma Tax Commission     99.75  
9/15/2010
  Pennsylvania Dept of Revenue     6,976.40  
9/15/2010
  South Carolina Department of R     2,914.00  
9/15/2010
  Tennessee Dept Of Revenue     6,189.00  
9/15/2010
  Texas Comptroller of Public Ac     846.00  
 
            

Page 11

 

             
Date   Payee     Amount
 
9/15/2010
  West Virginia Department of Re     316.03  
9/15/2010
  Wisconsin Department of Revenue     8,669.68  
9/15/2010
  Michigan Department of Treasury     7,761.97  
9/15/2010
  Tangipahoa Parish School System     52.50  
9/15/2010
  Livingston Parish School Board     10.26  
9/15/2010
  Tangipahoa Parish School System     14.70  
9/15/2010
  Missouri Department Of Revenue     5,553.04  
9/15/2010
  Tax Trust Acct     9.51  
9/15/2010
  California Board of Equalization     331.00  
9/15/2010
  Tangipahoa Parish School System     (21.83 )
9/15/2010
  Michigan Department of Treasury     (288.36 )
9/15/2010
  Missouri Department Of Revenue     (273.76 )
9/15/2010
  Wisconsin Department of Revenue     (18.98 )
9/16/2010
  Dataflo Consulting     (11.99 )
9/16/2010
  Dataflo Consulting     11.99  
9/17/2010
  On Line Imaging     96.95  
9/17/2010
  Signal 88 Security Group, LLC     3.81  
9/17/2010
  IBM Corporation     263.49  
9/17/2010
  ADT Security Services Inc     77.58  
9/17/2010
  Larue Distributing Inc     3.19  
9/17/2010
  On Line Imaging     97.06  
9/20/2010
  Virginia Department of Taxation     8,988.51  
9/20/2010
  State of Michigan     13,432.00  
9/22/2010
  Illinois Department Of Revenue     6,395.00  
9/23/2010
  Laser One     22.72  
9/23/2010
  Ikon Financial Services     46.92  
9/23/2010
  Cox Business Services     126.51  
9/27/2010
  Kansas Department of Revenue     3,956.79  
9/27/2010
  Nebraska Department Of Revenue     16,568.87  
9/27/2010
  New York Sales Tax Processing     17,606.64  
9/29/2010
  South Dakota Department of Revenue     304.39  
9/30/2010
  Illinois Department Of Revenue     4,593.00  
 
           
Total
        384,706.86  

Page 12

 

CASE NAME: ProConn, LLC
CASE NO.: 10-82437
Detail Sales and Use Tax Payments
August 19, 2010 through September 30, 2010
                             
                Outstanding    
Date   Payee   Amount   Checks   Other
 
8/19/2010
  Alabama Department of Revenue     18.60                  
8/19/2010
  Kentucky State Treasurer     1,486.23                  
8/19/2010
  Mississippi State Tax Commission     200.00                  
8/19/2010
  New York Sales Tax Processing     6,824.00                  
8/19/2010
  South Carolina Department of R     23.00                  
8/19/2010
  Texas Comptroller of Public Ac     80.00                  
8/19/2010
  Oklahoma Tax Commission     240.04                  
8/24/2010
  New Mexico Taxation & Revenue     187.02                  
8/25/2010
  Nebraska Department of Revenue     372.15                  
8/25/2010
  Nebraska Revenue     381.68                  
9/1/2010
  Commonwealth of Kentucky     1,508.85                  
9/8/2010
  Oklahoma Tax Commission     457.09                  
9/8/2010
  Oklahoma Tax Commission     1,627.25                  
9/15/2010
  Arkansas Department of Finance     19.00                  
9/15/2010
  Florida Department of Revenue     8.37                  
9/15/2010
  Iowa Department of Revenue     4,426.00                  
9/15/2010
  Kansas Department of Revenue     139.55                  
9/15/2010
  Kentucky State Treasurer     443.72                  
9/15/2010
  Louisiana Department of Revenue     4.00                  
9/15/2010
  Minnesota Department of Revenue     3,684.00                  
9/15/2010
  Mississippi State Tax Commission     6.00                  
9/15/2010
  New York Sales Tax Processing     2,174.09                  
9/15/2010
  Texas Comptroller of Public Ac     19.00                  
9/15/2010
  West Virginia State Tax Department     58.94                  
9/15/2010
  Michigan Department of Treasury     29.84                  
9/15/2010
  Colorado Department of Revenue     66.52                  
9/15/2010
  Idaho State Tax Commission     76.47                  
9/15/2010
  Virginia Department of Taxation     51.63                  
9/15/2010
  Missouri Department of Revenue     5.60                  
9/15/2010
  Missouri Department of Revenue     127.43                  
9/15/2010
  North Dakota State Tax Commissioner S     114.27                  
9/15/2010
  West Virginia State Tax Department     (55.50 )                
9/17/2010
  Oklahoma Tax Commission     417.63                  
9/17/2010
  Oklahoma Tax Commission     240.10                  
9/24/2010
  New Mexico Taxation & Revenue     83.41                  
9/27/2010
  Indiana Department of Revenue     333.84                  
9/27/2010
  Nebraska Department of Revenue     158.04                  
9/28/2010
  Arizona Department of Revenue     74.03       (74.03 )        
9/30/2010
  Illinois Department of Revenue     7,671.07       (7,671.07 )        
9/30/2010
  California Board of Equalization     44.63                  
9/30/2010
  Illinois Department of Revenue     (316.57 )     316.57          
         
Total
        33,511.02       (7,428.53 )     0.00  

Page 13

 

CASE NAME: Professional Veterinary Products, LTD; Exact Logistics, LLC; ProConn, LLC
CASE NO.: 10-82436; 10-82438; 10-82437
Payroll Tax Payment Detail
August 20, 2010 through September 30, 2010
                 
Pay Date   Type   Total Amount   Breakdown Amount
 
9/3/2010
  Federal Income Tax         58,013.09  
9/3/2010
  Social Security         51,315.53  
9/3/2010
  Medicare         13,103.92  
9/3/2010
  Federal Unemployment         18.76  
9/3/2010
  State Income Tax         18,639.48  
9/3/2010
  State Unemployment Ins         29.34  
9/3/2010
  State Unemployment/Disability         167.94  
9/3/2010
  Workers’ Benefit Fund         0.22  
9/3/2010
  Local Income Tax         500.99  
 
               
 
  Total         141,789.27  
 
                
9/17/2010
  Federal Income Tax         171,191.78  
9/17/2010
  Social Security         95,535.81  
9/17/2010
  Medicare         25,490.55  
9/17/2010
  Federal Unemployment         16.50  
9/17/2010
  State Income Tax         41,725.65  
9/17/2010
  State Unemployment Ins         43.06  
9/17/2010
  State Unemployment/Disability         231.46  
9/17/2010
  Workers’ Benefit Fund         —  
9/17/2010
  Local Income Tax         506.89  
 
               
 
  Total         334,741.70  
 
                
9/24/2010
  Federal Income Tax         48,777.63  
9/24/2010
  Social Security         29,459.87  
9/24/2010
  Medicare         7,708.35  
9/24/2010
  Federal Unemployment         5.09  
9/24/2010
  State Income Tax         12,609.65  
9/24/2010
  State Unemployment Ins         13.86  
9/24/2010
  State Unemployment/Disability         32.59  
9/24/2010
  Workers’ Benefit Fund         —  
9/24/2010
  Local Income Tax         379.72  
 
               
 
  Total         98,986.76  
 
                
Total
  Federal Income Tax         277,982.50  
Total
  Social Security         176,311.21  
Total
  Medicare         46,302.82  
Total
  Federal Unemployment         40.35  
Total
  State Income Tax         72,974.78  
Total
  State Unemployment Ins         86.26  
Total
  State Unemployment/Disability         431.99  
Total
  Workers’ Benefit Fund         0.22  
Total
  Local Income Tax         1,387.60  
 
               
 
  Total         575,517.73  

Page 14

 

CASE NAME: Professional Veterinary Products, LTD; Exact Logistics, LLC; ProConn, LLC
CASE NO.: 10-82436; 10-82438; 10-82437
Summary of Officer Payments
August 20, 2010 through September 30, 2010
                     
Officer   Pay Date   Base Pay   Net Pay
 
Steve Price
   8/20/2010     15,284.62       9,887.35  
Steve Price
   9/3/2010     15,284.62       9,887.35  
Steve Price
   9/17/2010     15,284.62       10,192.56  
         
Total Steve Price
         45,853.86       29,967.26  
 
                    
Jamie Meadows
   8/20/2010     7,307.70       4,608.68  
Jamie Meadows
   9/3/2010     7,307.70       4,608.69  
Jamie Meadows
   9/17/2010     7,307.70       4,800.16  
         
Total Jamie Meadows
         21,923.10       14,017.53  
 
                    
Total Officer Payments
         67,776.96       43,984.79  

Page 15

 

CASE NAME: Professional Veterinary Products, LTD; Exact Logistics, LLC; ProConn, LLC
CASE NO.: 10-82436; 10-82438; 10-82437
Summary of Board of Director Payments
August 20, 2010 through September 30, 2010
                 
Name   Date of Service   Paid Date   Amount  
 
Dr Donald Fogle
   8/24/2010   9/17/2010   $ 200.00  
Dr Scott Shuey
   8/24/2010   9/17/2010   $ 200.00  
Dr Sam Morris
   8/24/2010   9/17/2010   $ 200.00  
Dr Tom Wakefield
   8/24/2010   9/17/2010   $ 200.00  
Dr Vicky Wilkey
   8/24/2010   9/17/2010   $ 200.00  
Dr James Hoffman
   8/24/2010   9/17/2010   $ 200.00  
Dr Rhonda Lee Pierce
   8/24/2010   9/17/2010   $ 200.00  
Don Janezic
   8/24/2010   9/17/2010   $ 200.00  
 
              
Total
           $ 1,600.00  
 
                
Dr Donald Fogle
   8/31/2010   9/17/2010   $ 200.00  
Dr Scott Shuey
   8/31/2010   9/17/2010   $ 200.00  
Dr Sam Morris
   8/31/2010   9/17/2010   $ 200.00  
Dr Tom Wakefield
   8/31/2010   9/17/2010   $ 200.00  
Dr Vicky Wilkey
   8/31/2010   9/17/2010   $ 200.00  
Dr James Hoffman
   8/31/2010   9/17/2010   $ 200.00  
Dr Rhonda Lee Pierce
   8/31/2010   9/17/2010   $ 200.00  
 
              
Total
           $ 1,400.00  
 
                
Dr Donald Fogle
   9/9/2010   9/17/2010   $ 200.00  
Dr Scott Shuey
   9/9/2010   9/17/2010   $ 200.00  
Dr Sam Morris
   9/9/2010   9/17/2010   $ 200.00  
Dr Tom Wakefield
   9/9/2010   9/17/2010   $ 200.00  
Dr Vicky Wilkey
   9/9/2010   9/17/2010   $ 200.00  
Dr James Hoffman
   9/9/2010   9/17/2010   $ 200.00  
Dr Rhonda Lee Pierce
   9/9/2010   9/17/2010   $ 200.00  
Don Janezic
   9/9/2010   9/17/2010   $ 200.00  
 
              
Total
           $ 1,600.00  
 
                
 
              
Total
           $ 4,600.00  
 
              

Page 16

PROFESSIONAL VETERINARY PRODUCTS LTD /NE/ Reports