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HHGregg (HGGGQ)

Filed: 1 Apr 20, 11:32am
 
         Exhibit 99.3
 UNITED STATES BANKRUPTCY COURT
FOR THESOUTHERN  DISTRICT OF INDIANA
 
 In reHHG Distributing LLCCase No.17-01304-11
  Debtors      
 
 
 
 
MONTHLY OPERATING REPORT
 HHG Distributing LLC
 
 
 INDEX TO CONDENSED FINANCIAL STATEMENTS AND SCHEDULES
 
 CONDENSED FINANCIAL STATEMENTS   Page
 
  
Condensed Statement of Income
   2
  
Condensed Balance Sheet
    3
  
Condensed Statement of Cash Flows
   4
 
 SCHEDULES        
 
  
Schedule 1 -
Total Disbursements
   5
  
Schedule 2 -
Bank Reconciliations
    6
  
Schedule 3 -
Total Disbursements to Retained Professionals
  7
  
Schedule 4 -
Summary of Unpaid Post-Petition Debts
  8
  
Schedule 5 -
Schedule of Federal, State, and Local Taxes Collected, Received, Due or Withheld
9
  
Schedule 6 -
Accounts Receivable Aging
   10
  
Schedule 7 -
 Questionnaire
11
 
 
 
I declare under penalty of perjury (28 U.S.C. Section 1746) that this report and the documents attached are true and correct to the best of my knowledge and belief.
 
 
 
 
Signature of Debtor
   
Date
   
 
 
 
Signature of Joint Debtor
   
Date
   
 
 
/s/ Kevin Kovacs
   
3/27/2020
 
 
Signature of Authorized Individual*
   
Date
   
 
 
Kevin Kovacs
   
CEO/CFO
   
 
Printed Name of Authorized Individual
  
Title of Authorized Individual
 
 
 
 
* Authorized individual must be an officer, director, or shareholder if debtor is a corporation; a partner if debtor is a partnership; a manager or member if debtor is a limited liability company.
 



1


HHG Distributing LLC 
DEBTORS AND DEBTORS IN POSSESSION 
Condensed Consolidated Statement of Income (unaudited) 
  For the Period of
  February 1, 2020 to
(In Thousands)February 29, 2020
Net Sales
$

Cost of Goods Sold

Gross Profit

Operating Expenses:
 
Advertising Expense, Net

Occupancy Costs

Data Communications

Repair and Maintenance

Company Insurance (Non-Medical)

Employee Benefits

Wage Expense

Employee Services

Travel and Entertainment

Bank Transaction Fees

Professional Fees

Stock Compensation Expense (Benefit), Net

Gain/Loss on Early Extinguishment of Debt

Depreciation and Amortization

Administrative and Sales Expense

Product Services Expense

Bad Debts

Total Operating Expenses

Operating Income

Interest Expense, net

Other Income/(Expense)

Income Before Taxes

Income Tax Expense/(Benefit)

Net Income$



2



HHG Distributing LLC 
DEBTORS AND DEBTORS IN POSSESSION 
Condensed Consolidated Balance Sheet (unaudited) 
  As of
(In Thousands)2/29/2020
Assets 
Cash
$

Credit Card and Trade Accounts Receivable, Net

Accounts Receivable - Other

Merchandise Inventories

Prepaid Expenses and Other Assets

Income Taxes Receivable

Total Current Assets

Property and Equipment, Net

Capitalized Financing Fees, Net

Goodwill

Trademarks, Net

Other Assets, Net

Total Assets$                                  —

Liabilities and Stockholders' Deficit 
Accounts Payable

Outstanding Customer Deposits, Credits, Refunds

Unredeemed Gift Card Liability

Other Accrued Expenses

Deferred Tax Liability

DIP Loans

Total Current Liabilities$                                  —

Deferred Rent

LT Deferred Compensation

Other Long-term Liabilities

Liabilities Subject to Compromise
$

Total Liabilities

    Preferred Stock

Common Stock

Retained Earnings / (Accumulated Deficit)

Treasury Stock

Additional Paid-in Capital

Total Stockholders' Deficit$                                  —

Total Liabilities and Stockholders' Deficit
$


 


3

HHG Distributing LLC 
DEBTORS AND DEBTORS IN POSSESSION 
Condensed Consolidated Statement of Cash Flows (unaudited) 
 For the Period of 
 February 1, 2020 to 
(In Thousands)February 29, 2020 
Cash flows from operating activities:  
     Net cash provided by (used in) operating activities
$

 
Cash flows from investing activities:  
     Purchases of property and equipment

 
     Proceeds from sale of property and equipment

 
     Other

 
     Net cash used in investing activities

 
Cash flows from financing activities:  
     Net Borrowings (Repayments) on Line of Credit

 
 

 
Increase/(decrease) in cash and cash equivalents

 
Cash and cash equivalents at beginning of period

 
Cash and cash equivalents at end of period
$

 

 
4



HHG Distributing LLC    
DEBTORS AND DEBTORS IN POSSESSION  
Total Disbursements by Filed Legal Entity (unaudited) 
(In Thousands)
    
For the Period of February 1, 2020 to February 29, 2020
Legal Entity Case Number  Disbursements
HHG Distributing LLC
 17-01304-11 $                  —



 

 
5


HHG Distributing LLC    
DEBTORS AND DEBTORS IN POSSESSION    
Bank Reconciliations (unaudited)    
(In Thousands)
      
G/L AcctAccount NameBank Acct #DebtorDescriptionBank BalanceLedger BalanceAs of DateReconciled
 
NOTE: No bank accounts are held by HHG Distributing LLC.
  



6













Gregg Applicances, Inc.     
DEBTORS AND DEBTORS IN POSSESSION    
Total Disbursements to Retained Professionals (unaudited)    






(In Thousands)     
For the Period of February 1, 2020 to February 29, 2020
Retained Professionals Approved Amounts (1) Disbursements
MORGAN, LEWIS & BOCKIUS LLPLegal Services 1,878
 
STIFEL, NICOLAUS & COMPANY INCBankruptcy Services 
 
BERKELEY RESEARCH GROUP LLCBankruptcy Services 2,423
 
DONLIN, RECANO & COMPANY INCBankruptcy Services 
 
ICE MILLER LLPLegal Services 1,938
 
 BINGHAM GREENBAUM DOLL LLPBankruptcy Services 203   — 
MALFITANO PARTNERSBankruptcy Services 66
 
COOLEY LLPBankruptcy Services 2,276
 
PROVINCE, INC.Bankruptcy Services 556
 
DLA PIPER LLP USBankruptcy Services  —   — 
FAEGRE BAKER DANIELS LLPBankruptcy Services  —   — 
ASK LLPBankruptcy Services  —   — 
GREAT AMERICAN GROUPBankruptcy Services  —   — 
GAVIN SOLMENESE LLC
Bankruptcy Services 136   — 
CHIPMAN BROWN CICERO & COLE, LLP
Legal Services  60   — 






Total$9,538
 $


















(1) Approved amounts represent the amount of fees and expenses that were approved by court order for payment by the Debtors to each professional from commencement of the case through February 2020.

 



7

HHG Distributing LLC      
DEBTORS AND DEBTORS IN POSSESSION     
Summary of Unpaid Post-Petition Debts (unaudited)  
As of 2/29/2020
      
(In Thousands)      
HHG Distributing LLC (17-01304-11)
   Number of Days Past Due
 Current 0-3031-6061-90Over 90Total
Accounts Payable
$                   —

$                —

$             —

$             —

$             —

$                      —

Wages Payable






Taxes Payable






Rent/Leases-Building






Utilities Payable






Insurance Reserves






Secured Debt/Adequate Protection Payments






Professional Fees






Amounts Due to Insiders






Outstanding Customer Deposits, Credits, Refunds






Unredeemed Gift Card Liability






Deferred Rent






LT Deferred Compensation






Other






Total Post-Petition Debts
$                   —

$                —

$             —

$             —

$             —

$                      —





8

HHG Distributing LLC    
DEBTORS AND DEBTORS IN POSSESSION  
Schedule of Federal, State, & Local Taxes Collected, Received, Due or Witheld (unaudited) 
(In Thousands)      
For the Period of February 1, 2020 to February 29, 2020
   
 Beginning Tax LiabilityAmount Withheld or AccruedAmount PaidDate PaidCheck No. or EFTEnding Tax Liability
Federal      
Withholding
$                     —

$                     —

$                     —

  $                     —

FICA - Employee
$                     —

$                     —

$                     —

  $                     —

FICA - Employer
$                     —

$                     —

$                     —

  $                     —

Unemployment
$                     —

$                     —

$                     —

  $                     —

Income
$                     —

$                     —

$                     —

  $                     —

Total Federal Taxes
$                     —

$                     —

$                     —

  $                     —

State and Local      
Withholding
$                     —

$                     —

$                     —

  $                     —

Sales and Use
$                     —

$                     —

$                     —

  $                     —

Excise
$                     —

$                     —

$                     —   $                     —

Unemployment
$                     —

$                     —

$                     —

  $                     —

Real Property
$                     —

$                     —

$                     —

  $                     —

Personal Property
$                     —

$                     —

$                     —

  $                     —

Other
$                     —

$                     —

$                     —

  $                     —

Total State and Local
$                     —

$                     —

$                     —

  $                     —





9

HHG Distributing LLC     
DEBTORS AND DEBTORS IN POSSESSION     
Accounts Receivable Aging (unaudited)     
(In Thousands)     
As of February 29, 2020     
Accounts Receivable Reconciliation Credit Card ReceivablesTrade Accounts Receivable Total Credit Card and Trade Accounts Receivable
Total Accounts Receivable at the beginning of the reporting period
 
$

$

 
$

+ Amounts billed during the period
 


 
 

- Amounts collected during the period
 


 
 

- Other Adjustments (Writeoffs/Credit Memos/Adjustments/Chargebacks/Signifyd Funding)
 


 
 

Total Accounts Receivable at the end of the reporting period
 
$

$

 
$

As of February 29, 2020
    
Accounts Receivable Aging     
< 90
 $                         —


 
$

91+
 


 
 

Total Accounts Receivable
 


 
 

Amount Considered Uncollectible
 


 
 

Accounts Receivable, Net
 
$

$

 
$

NOTES
     

 

10


HHG Distributing LLC      
DEBTORS AND DEBTORS IN POSSESSION    
Questionnaire      
      YesNo
1. Have any assets been sold or transferred outside the normal course of business this reporting period? If yes, provide an explanation below.
 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.
 X
3. Have all post-petition tax returns been filed timely? If no, provide an explanation below.
X 
4. Are workers compensation, general liability, and other necessary insurance coverages in effect? If no, provide an explanation below.
X 
5. Has any bank account been opened during the reporting period? If yes, provide documentation identifying the opened account(s). If an investment has been opened provide the required documentation pursuant to the Delaware Local Rule 4001-3.
 X
Account NamePurposeBusinessAcct NumberBank NameDate





11