UNITED STATES BANKRUPTCY COURT

MIDDLE DISTRICT OF TENNESSEE

In re:
CS DIP, LLC, et al.

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)
)
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)
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Debtors

Case No.: 12-01573

Jointly Administered
Judge: Keith M Lundin
Chapter 11

MONTHLY OPERATING REPORT FOR MONTH ENDING JULY 31, 2012.

CS DIP, LLC, et al., Debtor-In-Possession, submits its Monthly Operating Report for the
period commencing July 1, 2012 and ending July 31, 2012 as shown by the report and
exhibits consisting of
12
pages and containing the following, as indicated:

Monthly Reporting Questionnaire

Comparative Balance Sheets

Summary of Accounts Receivable

Schedule of Postpetition Liabilities

Statement of Income (Loss)

I declare under penalty of perjury that this report and all attachments are true and
correct to the best of my knowledge and belief.

Date:

August 15, 2012

DEBTOR-IN-POSSESSION

By: /s/ Bradley B. Williams

(name of signer)
Title:

Chief Manager, President

Address:

618 Church Street, Suite 520

Nashville, Tennessee, 37219

Telephone Number: (615)750-0300

Fax Number:
Email Address:

Case 3:12-bk-01573

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(615)750-0301
bwilliams@cshm.com

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Document
Page 1 of 13

Desc Main

Case Name
Case Number
Month of

CS DIP, LLC, et al.

12-01573; Jointly Administered
July 1 - 31, 2012

(Amounts in Dollars)

Debtors Bank Accounts *

Bank
Account Number
Account Type
Account Name

Pinnacle Bank
5274XXX
Checking / Operating
FNY DIP, LLC

Beginning Bank Balance

Plus: Deposits
Less: Disbursements
Other
Ending Bank Balance

Pinnacle Bank
5270XXX
Checking/Payroll
EE DIP, Inc.

76.51
76.51

495,607.79
26.49
(25,905.29)
469,728.99

Pinnacle Bank
5269XXX
Checking / Operating
CS DIP, LLC

2,128,208.63
74.40
(1,147,144.46)
981,138.57

Pinnacle Bank
5274XXX
Checking / Payroll
CS DIP, LLC

Pinnacle Bank
5274XXX
Checking / Operating
CS DIP, LLC

15,457.64
(191.54)
15,266.10

* Closed bank accounts have been omitted

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Desc Main

4,308.00
(594.00)
3,714.00

Case Name
Case Number
Month of
Bank Name
Bank Account

Wind-Down Escrow Account

CS DIP, LLC, et al.

12-01573; Jointly Administered
July 1 - 31, 2012
Pinnacle Bank
5270XXX

(Amounts in Dollars)

Debtors Bank Activity

Date
07/11/2012
07/11/2012
07/16/2012
07/23/2012
07/23/2012
07/26/2012
07/30/2012
07/30/2012
07/30/2012
07/31/2012

Check #

10000

10001

Activity
PINNACLE ANALYSIS
PINNACLE ANALYSIS
Check
1512B*0309547184 REVERSAL
1512B*745851235 MAN DEBIT
1512B*0689881195 REVERSAL
1512B*1402509510 NET=PAY
1512B*0003483213 TAX
1512B*0760914565 BILLING
Check
Total

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Description
Bank Fees
Bank Fees
Professional Fees
Payroll Taxes
Payroll Taxes
Payroll Taxes
Payroll - Officer
Payroll Taxes
Payroll Processor Fees
Professional Fees

Receipts

Disbursements
(35.58)
(68.83)
(1,710.40)

13.50
(11.23)
12.99

26.49

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Page 3 of 13

(3,306.85)
(375.65)
(765.00)
(19,631.75)
(25,905.29)

Desc Main

Case Name
Case Number
Month of
Bank Name
Bank Account

CS DIP, LLC, et al.

12-01573; Jointly Administered
July 1 - 31, 2012
Pinnacle Bank
5269XXX

Professional Fees, 503(b)(9) and Taxes Escrow Account

(Amounts in Dollars)

Debtors Bank Activity

Date
07/02/2012
07/02/2012
07/03/2012
07/03/2012
07/05/2012
07/06/2012
07/09/2012
07/09/2012
07/10/2012
07/16/2012
07/16/2012
07/16/2012
07/16/2012
07/18/2012
07/19/2012
07/19/2012
07/19/2012
07/26/2012
07/27/2012
07/31/2012
07/31/2012
07/31/2012
07/31/2012
07/31/2012
07/31/2012

Check #
03813
10253
03818
03819
03822
03821
10255
10256
10254
03823
10260
10261
03817
10257
10258
10259
10262
10181
03810
10263
10264
10265
10266
10267

Activity
Check
Check
Check
Check
Check
Check
Check
Check
Check
Deposit
Check
Check
Check
Check
Check
Check
Check
Check
Check
Check
Check
Check
Check
Check
Check
Total

Case 3:12-bk-01573

Description
503(b)(9) Administrative Priority Claims
Professional Fees
503(b)(9) Administrative Priority Claims
503(b)(9) Administrative Priority Claims
503(b)(9) Administrative Priority Claims
503(b)(9) Administrative Priority Claims
Professional Fees
Professional Fees
Professional Fees
Professional Fees - Reimbursement
503(b)(9) Administrative Priority Claims
Professional Fees
Professional Fees
503(b)(9) Administrative Priority Claims
Professional Fees
Professional Fees
Professional Fees
Professional Fees
AP Disbursements
503(b)(9) Administrative Priority Claims
Professional Fees - US Trustee
Professional Fees - US Trustee
Professional Fees - US Trustee
Professional Fees - US Trustee
Professional Fees - US Trustee

Receipts

74.40

74.40

Doc 493

Disbursements
(12,917.50)
(223,650.75)
(6,030.65)
(12,722.26)
(5,296.36)
(1,100.94)
(13,984.12)
(72,357.96)
(14,261.06)

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(18,202.36)
(21,210.21)
(18,161.95)
(225.93)
(91,333.36)
(400,000.00)
(7,664.44)
(197,585.93)
(1,666.67)
(972.01)
(20,000.00)
(650.00)
(6,500.00)
(325.00)
(325.00)
(1,147,144.46)

Desc Main

Case Name
Case Number
Month of
Bank Name
Bank Account

CS DIP, LLC, et al.

12-01573; Jointly Administered
July 1 - 31, 2012
Pinnacle Bank
5274XXX

(Amounts in Dollars)

Debtors Bank Activity

Date
07/02/2012
07/02/2012
07/11/2012
07/26/2012
07/31/2012

Check #
110581
240563
20277
540277

Activity
Check
Check
Check
Check
IRS USATAXPYMT 270261335747254
Total

Case 3:12-bk-01573

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Description
Payroll Check - Non-Debtors
Payroll Check - Non-Debtors
Payroll Check - Non-Debtors
Payroll Check - Non-Debtors
Payroll Taxes - Non-Debtors

Receipts

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Disbursements
(19.47)
(15.23)
(47.17)
(22.23)
(87.44)
(191.54)

Desc Main

Case Name
Case Number
Month of
Bank Name
Bank Account

CS DIP, LLC, et al.

12-01573; Jointly Administered
July 1 - 31, 2012
Pinnacle Bank
5274XXX

(Amounts in Dollars)

Debtors Bank Activity

Date
07/02/2012
07/02/2012
07/09/2012
07/23/2012
07/24/2012

Check #
1409
1422
1421
1411
1402

Activity
Check
Check
Check
Check
Check
Total

Case 3:12-bk-01573

Description
AP Disbursements - Non-Debtors
AP Disbursements - Non-Debtors
AP Disbursements - Non-Debtors
AP Disbursements - Non-Debtors
AP Disbursements - Non-Debtors

Receipts

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Disbursements
(34.00)
(200.00)
(200.00)
(120.00)
(40.00)
(594.00)

Desc Main

Case Name
Case Number
Month of

CS DIP, LLC, et al.

12-01573; Jointly Administered
July 1 - 31, 2012

(Amounts in Dollars)

Debtors AP Disbursements
Date
07/05/12
07/05/12
07/06/12
07/12/12
07/12/12
07/12/12
07/12/12
07/12/12
07/12/12
07/19/12
07/26/12
07/26/12
07/26/12
07/26/12
07/26/12
07/26/12

07/12/12
07/26/12

Check #
10254
10255
10256
03823
10257
10258
10259
10260
10261
10262
03824
10263
10264
10265
10266
10267

Paid to
Foley Hoag LLP
King & Spalding LLP
Waller Lansden Dortch & Davis PLLC
Lellyett & Rogers Company
Foley Hoag LLP
Gibson Dunn & Crutcher LLP
Imperial Capital, LLC
King & Spalding LLP
Walker,Tipps & Malone PLC
The Garden City Group, Inc.
Staples Business Advantage
US Trustee
US Trustee
US Trustee
US Trustee
US Trustee

Category
Debtor Professional
Debtor Professional
Debtor Professional
503(b)(9) Claim
Debtor Professional
Lender Professional
Debtor Professional
Debtor Professional
Debtor Professional
Debtor Professional
503(b)(9) Claim
Other Professional
Other Professional
Other Professional
Other Professional
Other Professional

Amount
14,261.06
13,984.12
72,357.96
18,202.36
91,333.36
400,000.00
7,664.44
21,210.21
18,161.95
197,585.93
42,487.78
20,000.00
650.00
6,500.00
325.00
325.00
925,049.17

Debtor
CS DIP, LLC
CS DIP, LLC
CS DIP, LLC
CS DIP, LLC
CS DIP, LLC
CS DIP, LLC
CS DIP, LLC
CS DIP, LLC
CS DIP, LLC
CS DIP, LLC
CS DIP, LLC
CS DIP, LLC
CS DIP, LLC
CS DIP, LLC
CS DIP, LLC
CS DIP, LLC

10000
10001

Walker,Tipps & Malone PLC

Waller Lansden Dortch & Davis PLLC

Debtor Professional
Debtor Professional

1,710.40
19,631.75
21,342.15

EE DIP, INC.
EE DIP, INC.

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Desc Main

Case Name
Case Number
As of

CS DIP, LLC, et al.

12-01573; Jointly Administered
July 31, 2012

(Amounts in Dollars)

Post-Petition AP Aging (excludes accrued AP)

Total

CS DIP, LLC
FNY DIP, LLC

299,557.56
158.11

Case 3:12-bk-01573

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Current

Over 30 Days
-

204,440.34
158.11

Over 60 Days

Over 90 Days

86,004.72
-

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Desc Main

112.50
-

Over 120 Days

9,000.00
-

CS DIP, LLC, et al.

Consolidating Balance Sheet
For the Month Ended July 31, 2012
Amounts in thousands

DEBTORS
SSHC DIP
Cash and cash equivalents
Accounts receivable, gross
Allowance for doubtful accounts
Mgmt company receivables
Allowance for mgmt fees
Other receivables
Prepaid expenses
Total current assets

CS DIP

EE DIP

932,578
556,034,936
(556,034,936)
174,222
1,106,801

Fixed assets, net

Intercompany investments
Intangibles
Other assets

191,015,198
-

38,733,664
74,075,957
-

Total Assets

191,015,198

113,916,422

(2,283)

Intercompany
Eliminations

FNY DIP
-

3,063,849
(3,063,849)
1,088
1,088

118,520
272,449
(378,345)
51,174
63,797

1,520,827
271,788
(378,345)
558,598,785
(558,598,785)
5,760
226,539
1,646,569

73,679,900
(396)

472,600

48,252

4,671

(229,748,862)

75,708,281

(382,207)

75,326,073

55,148
0
55,148

1,733,268

14,934

Long term debt

Long term liabilities
Total Liabilities

264,489,100

1,788,417

14,933

(44,875,000)
192,268,788
(290,137)
(297,676,327)
(150,572,676)
113,916,423

22,742,924
(935,707)
(23,123,034)
(1,315,817)
472,600

Case 3:12-bk-01573

1,402,307
(660)
558,598,785
(558,598,785)
5,760
175,365
1,582,772

(444,992)
(1,012)

264,489,100

67,400,000
169,966,574
(46,351,376)
191,015,198
191,015,198

Consolidated

74,124,892
617

(0)

Intercompany
Eliminations

(229,748,862)
-

Liabilities subject to compromise

Dental
Centers

2,966
617

(0)
0

Total
Debtors

45,968
2,283

Accounts payable
Accrued employee comp
Accrued interest
Current portion - LTD
Mgmt company payables
Mgmt co payable reserve
Other accrued liabilities
Total current liabilities

Preferred equity
Contributed capital
Minority interest
Owner distributions
Retained earnings
Total Equity
Total Liabilities and Equity

469,729
(660)
(500,000)
500,000
5,760
55
474,883

FS DIP

Doc 493

18,802,050
680,360
(19,434,158)
48,252
48,252

(0)
(1)
(1)

(25,964,417)
25,954,155
(10,262)
4,671

55,148
(1)
0
55,147

46,299
(7,330)
100,850,002
(100,850,002)
24,898
63,867

(100,850,002)
100,850,002
-

266,237,302
(229,748,862)
(229,748,862)
(229,748,862)

266,237,302

266,292,449

63,867

22,525,000
174,031,474
(26,509,900)
(360,630,740)
(190,584,167)
75,708,282

(40)
56,275
6,000
(508,312)
(446,077)
(382,210)

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101,447
(7,331)
0
24,898
119,014

40
(2,124,549)
26,213,764
(24,089,255)
-

Desc Main

266,356,316
22,525,000
171,963,200
(290,136)
(385,228,307)
(191,030,244)
75,326,072

CS DIP, LLC, et al.

Consolidating Income Statement
For the Month Ended July 31, 2012
Amounts in thousands

DEBTORS
CS DIP
Gross patient revenue
Revenue adjustments
Management fees
Management fee reserve
Other income
Net revenue

EE DIP
$
-

Salaries
Draw reconciliation and bonuses
Payroll taxes and benefits
Supplies
Advertising
Purchased services
Bad debt expense
Rent
Utilities
Travel and entertainment
Repairs and maintenance
Taxes and licenses
Insurance
Other operating expenses
Total operating expenses

3,600
52
765
30
104
4,552

EBITDA

Depreciation and amortization

EBIT

Interest income
Interest expense
Minority interest
Other external costs
Management fees - CSHM
Management fees - external
Discontinued operations
(Gain)/loss on asset disposal
Net income (loss)

FNY DIP
$
-

SSHC DIP
$
-

Total
Debtors
$
-

Dental
Centers
$
-

Eliminations Consolidated
$
$
-

76
89

3,600
52
13
765
76
30
104
4,641

3,600
52
13
765
76
30
104
4,641

(4,552)

(89)

(4,641)

(4,641)

(4,552)

(89)

(4,641)

(4,641)

567,609
-

76,490
-

644,099
-

21,605
-

644,099
21,605
-

(567,609)

(81,042)

(89)

(648,740)

(21,605)

(670,345)

Case 3:12-bk-01573

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FS DIP

13
-

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Desc Main

CS DIP, LLC, et al.

Consolidating Cash Flow Statement
For the Month Ended July 31, 2012
Amounts in thousands

DEBTORS
CS DIP
Cash flows from operating activities
Net income
Adjustments to reconcile net income to net cash
provided by operating activities:
Depreciation
Interest expense paid through issuance of notes payable
Amortization of noncompete agreements
Amortization of deferred finance fees
(Gain)/loss on fixed asset disposal
Changes in operating assets and liabilities:
Mgmt fees receivable
Prepaid assets
Other receivables
Other assets
Accounts payable
Accrued salaries and wages
Accrued interest
Liabilities subject to compromise
Other accrued liabilities
Other long term liabilities
Net cash provided (used) by operating activities

EE DIP

(567,609) $

(184)
(357,183)
(924,976)

FNY DIP

(81,042) $

FS DIP

(89) $

686
597

15
55,148
(25,879)

Total
Debtors

SSHC DIP

(648,740)

502
15
(302,035)
(950,258)

Cash flows from investing activities

Capital expenditures
Other investing activities
Net cash provided (used) in investing activities

Cash flows from financing activities

Settlement payments
Net DIP revolver borrowings
Contributed capital - intercompany
Distributions to minority interest holders
Owner distributions
Net cash provided (used) by operating activities

(924,976)
1,857,554
932,578 $

(25,879)
495,608
469,729 $

Net increase (decrease) in cash and cash equivalents

Cash, beginning of month
Cash, end of month

Case 3:12-bk-01573

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597
(597)
$

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Desc Main

(950,258)
2,352,565
1,402,307

Case Name
Case Number
Month of

CS DIP, LLC, et al.

12-01573; Jointly Administered
July 1 - 31, 2012

Professional Fees, 503(b)(9) and Taxes Escrow

(Amounts in Dollars)

Escrow
at 5/31/2012
Debtor Professionals
Debtor Counsel - Waller Lansden
Debtor FA - Alvarez & Marsal
Debtor Special Counsel - Foley Hoag
Debtor Local Counsel - Walker Tipps
Investment Banker - Imperial Capital
Data Room - Merrill
King & Spalding
Total Debtor Professionals

397,335
464,555
440,579
106,000
12,000
1,000
93,140
1,514,609

Disbursements
June

July

223,651
299,555
77,012
44,108
644,327

Lender Professionals
Sr. Lender Counsel - Bass Berry
DIP Lender Counsel - Gibson Dunn
DIP Lender Local Counsel - Burr Forman
Total Lender Professionals

15,000
400,000
50,000
465,000

UCC Professionals - Baker Donelson

126,750

Other Professionals
US Trustee
Noticing Agent - GCG

30,000
282,586

Escrow
Total

Balance

72,284
105,594
18,162
7,664
35,194
238,899

295,934
299,555
182,607
62,270
7,664
35,194
883,225

101,401
165,000
257,972
43,730
4,336
1,000
57,946
631,384

400,000
400,000

400,000
400,000

15,000
50,000
65,000

27,800
197,586

27,800
197,586

2,200
85,000

126,750

Total Professional Fees

2,418,946

644,327

864,285

1,508,611

910,335

Additional Amounts to be Escrowed

503(b)9 Claims
2011 Taxes and Fees
Grand Total

182,897
11,425
2,613,268

111,388
755,715

60,690
924,975

172,078
1,680,689

10,819
11,425
932,578

Case 3:12-bk-01573

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Desc Main

Case Name
Case Number
Month of

CS DIP, LLC, et al.

12-01573; Jointly Administered
July 1 - 31, 2012

Wind-Down Escrow

(Amounts in Dollars)

Escrow
at 5/31/2012
Officer
UCC Professionals
Foley Hoag & Walker Tipps (Special Counsel)
Debtors Counsel
Noticing Agent
UST Fees
Bank Fees
Financial Advisor (testimony, advisory, etc)
Other
TOTAL

Case 3:12-bk-01573

30,600
75,000
175,000
125,000
65,000
15,000
1,000
10,000
3,400
500,000

Doc 493

June
4,392
4,392

Disbursements
July
4,432
1,710
19,632
104
25,879

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Document
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Total
8,824
1,710
19,632
104
30,271

Desc Main

Escrow
Balance
21,776
75,000
173,290
105,368
65,000
15,000
896
10,000
3,400
469,729