-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: webmaster@www.sec.gov Originator-Key-Asymmetric: MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB MIC-Info: RSA-MD5,RSA, LkjXxuoYyBuDmdwqCat82FXloCJDtPv8EY2C/5TrNXZBQyZ1itfoJZh6fkmsu0wf tLdJV7gvJ0/KA82Z3aYNcQ== /in/edgar/work/0000950134-00-010083/0000950134-00-010083.txt : 20001122 0000950134-00-010083.hdr.sgml : 20001122 ACCESSION NUMBER: 0000950134-00-010083 CONFORMED SUBMISSION TYPE: 8-K PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 20001120 ITEM INFORMATION: ITEM INFORMATION: FILED AS OF DATE: 20001121 FILER: COMPANY DATA: COMPANY CONFORMED NAME: KEVCO INC CENTRAL INDEX KEY: 0001021706 STANDARD INDUSTRIAL CLASSIFICATION: [3440 ] IRS NUMBER: 752666013 STATE OF INCORPORATION: TX FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 8-K SEC ACT: SEC FILE NUMBER: 000-21621 FILM NUMBER: 774349 BUSINESS ADDRESS: STREET 1: UNIVERSITY CENTRE I STREET 2: 1300 S UNIVERSITY DR STE 200 CITY: FORT WORTH STATE: TX ZIP: 76107 BUSINESS PHONE: 8173322758 MAIL ADDRESS: STREET 1: UNIVERSITY CENTRE I STREET 2: 1300 S. UNIVERSITY DRIVE SUITE 200 CITY: FORTH WORTH STATE: TX ZIP: 76107 8-K 1 d82221e8-k.txt FORM 8-K 1 SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 ---------- FORM 8-K CURRENT REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 DATE OF REPORT (DATE OF EARLIEST EVENT REPORTED): NOVEMBER 20, 2000 KEVCO, INC. (Exact name of Registrant as specified in charter) TEXAS 000-21621 75-2666013 (State or other jurisdiction (Commission File Number) (I.R.S. Employer of Incorporation) Identification No.) UNIVERSITY CENTRE I 1300 S. UNIVERSITY DRIVE 76107-5734 SUITE 200 (Zip Code) FORT WORTH, TEXAS (Address of principal executive offices) (817) 885-0000 (Registrant's telephone number, including area code) ---------- 2 ITEM 7. FINANCIAL STATEMENTS AND EXHIBITS. (c) Exhibits. Exhibit No. Description 99.1 Press release of the Company dated November 20, 2000. ITEM 9. REGULATION FD DISCLOSURE. On November 20, 2000, the Company issued a press release in respect of the earnings of the Company for the quarter ended September 30, 2000. A copy of the release is filed herewith as Exhibit 99.1. 2 3 SIGNATURES Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized. KEVCO, INC. Date: November 20, 2000 By: /s/ JOSEPH P. TOMCZAK ------------------------------------- Joseph P. Tomczak, Executive Vice President and Chief Financial Officer 4 INDEX TO EXHIBITS
EXHIBIT NUMBER DESCRIPTION - ------- ----------- 99.1 Press Release of the Company dated November 20, 2000.
EX-99.1 2 d82221ex99-1.txt PRESS RELEASE 1 EXHIBIT 99.1 NEWS FOR IMMEDIATE RELEASE Contact: Joseph P. Tomczak Chief Financial Officer (817) 885-0000 KEVCO REPORTS THIRD QUARTER RESULTS FORT WORTH, TEXAS (NOV. 20, 2000) - Kevco, Inc. (Nasdaq/NM:KVCO) today reported results for the third quarter and nine months ended September 30, 2000. Net sales for the three months totaled $137.0 million, compared with $208.7 million in the year-earlier period. The Company reported a net loss for the third quarter of $9.3 million, or $0.98 per share, compared with a net loss of $26.0 million or $2.94 per share, including one-time charges of $21.5 million or $2.44 per share, in the year-earlier period. For the first nine months of 2000, net sales totaled $470.7 million, compared with $663.2 million in the year-earlier period. The Company reported a net loss for the nine months of $16.1 million, or $1.69 per share, compared with a net loss of $27.9 million, or $3.71 per share, including one-time charges of $21.5 million or $2.86 per share, in the first nine months of 1999. Fred Hegi, chairman of the board, president and chief executive officer, commented, "The significant decline in our net sales from $166.9 million in the second quarter to $137.0 million in the third period underscores the further weakening that has occurred within all levels of the manufactured housing industry. A drastic reduction in credit availability for potential purchasers of manufactured housing and a proliferation of repossessions have aggravated the decline in retail sales that began during the first quarter. Indications are that retail demand for new units is now running more than 20% below a year ago. Coupled with the excessive retail inventories that were present industry-wide at the start of the year, the decline in retail sales has led to the estimated closing of more than one of every five manufacturing facilities and much lower production volume at many still open. More contraction in capacity seems likely before we start to see any sustained improvement in what remains a fundamentally sound industry with a clearly defined role in helping to meet the nation's housing needs." Hegi added, "The severity of the industry's difficulties has caused a significant variance in our financial planning thus far this year. We have had no borrowings, however, under our revolving credit agreement since September of 1999 and still expect to have a positive cash flow for 2000, based on the benefits expected from the actions taken to reduce costs and improve working capital, and barring declines in industry production that are more than we anticipate. We continue to work closely with our bank group and recently completed an amended lending agreement with which we are in full compliance. -MORE- 2 Kevco, Inc. Reports Third Quarter Results Page 2 November 20, 2000 - -------------------------------------------------------------------------------- "Kevco remains an important partner in the basic flow of products from suppliers to manufactured home producers. Our strategic focus is continuous enhancement of the value we bring to this supply chain. In September, we completed the successful conversion, on schedule and within budget, to a single information system connecting our nation-wide network of distribution centers. Having a single systems platform in our distribution facilities is already increasing our efficiency and service levels and is enabling us to address the heightened pressures of the current industry environment by streamlining other administrative functions. We expect to realize annualized savings of more than $2 million from these synergies. We have also rationalized our geographical coverage and expect to start 2001 with 24 distribution facilities, down from 34 at the start of this year." Kevco, headquartered in Fort Worth, Texas, is a leading wholesale distributor and manufacturer of building products for the manufactured housing and recreational vehicle industries. This press release contains forward-looking statements within the meaning of Section 21E of the Securities Exchange Act of 1934, as amended. Forward-looking statements include those relating to implementation of the Company's cost improvement and operating efficiency initiatives, the effect of installation of a new information system, the outlook for and advantages of manufactured housing and includes statements relating to the Company or its operations that include terms such as "expects," "believes," "anticipates," "intends," "goals" and similar expressions. Forward-looking statements are not guarantees of future performance and involve risks and uncertainties. The Company's actual results, performance and achievements could differ materially from the results, performance or achievements expressed in, or implied by, these forward-looking statements as a result of various factors, including without limitation, the Company's substantial leverage and its effects on the Company's ability to obtain additional capital as needed, the adequacy of existing funds to meet liquidity needs, the Company's ability to integrate its operations and realize savings from the implementation of its new management information systems, the realization of savings from plant consolidations and staff reduction; the ability of the manufactured housing industry to reduce inventory, customer demand for manufactured housing and recreational vehicles, the effect of general economic conditions, including increasing interest rates, the availability of financing for manufactured housing consumers and the impact of raw materials prices. This press release speaks as of the date it is released. The Company does not intend to, and does not undertake to, update information contained in this press release absent an express obligation to do so in connection with required filings under Federal securities laws. A description of these factors, as well as other factors which could affect the Company's business, is set forth in filings by the Company with the Securities and Exchange Commission, including the Company's Form 10-K for the year ended December 31, 1999 and Form 10-Q for the quarter ended September 30, 2000. KEVCO, INC. CONDENSED CONSOLIDATED FINANCIAL RESULTS (IN THOUSANDS, EXCEPT PER SHARE DATA) (UNAUDITED)
THREE MONTHS ENDED NINE MONTHS ENDED SEPT. 30, SEPT. 30, 2000 1999 2000 1999 ---------- ---------- ---------- ---------- Net sales $ 137,030 $ 208,682 $ 470,682 $ 663,244 Net (loss) $ (9,341) $ (25,971) $ (16,140) $ (27,941) (Loss) per share - basic and diluted $ (0.98) $ (2.94) $ (1.69) $ (3.71) Weighted average shares outstanding - basic and diluted 9,563 8,828 9,563 7,523
-MORE- 3 Kevco, Inc. Reports Third Quarter Results Page 3 November 20, 2000 - -------------------------------------------------------------------------------- KEVCO, INC. CONSOLIDATED STATEMENTS OF OPERATIONS (IN THOUSANDS, EXCEPT PER SHARE DATA) (UNAUDITED)
THREE MONTHS ENDED NINE MONTHS ENDED SEPT. 30, SEPT. 30, --------------------------- --------------------------- 2000 1999 2000 1999 ---------- ---------- ---------- ---------- Net sales $ 137,030 $ 208,682 $ 470,682 $ 663,244 Gross margin 17,143 19,614 62,483 79,436 12.5% 9.4% 13.3% 11.9% Selling, general and administrative expenses 20,724 27,866 61,846 79,709 15.1% 13.4% 13.1% 12.0% Impairment and other special charges -- 6,807 -- 6,807 Operating income (3,581) (15,059) 637 (7,080) (2.6%) (7.3%) 0.2% (1.1%) Other income (expense) (3) 1,547 102 2,421 Debt transaction costs -- 6,272 -- 6,272 Interest expense 5,757 6,187 16,879 17,796 Loss before income taxes (25,971) (16,140) (28,727) (9,341) Income tax expense (benefit) -- -- -- (786) Net loss $ (9,341) $ (25,971) $ (16,140) $ (27,941) Loss per share - basic and diluted $ (0.98) $ (2.94) $ (1.69) $ (3.71) Weighted average shares outstanding - basic and diluted 9,563 8,828 9,563 7,523
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