EX-99.5 6 d86769ex99-5.txt MONTHLY OPERATING REPORT FOR KEVCO COMPONENTS, INC 1 EXHIBIT 99.5 CASE NAME: KEVCO COMPONENTS, INC. ACCRUAL BASIS CASE NUMBER: 401-40790-BJH-11 JUDGE: BARBARA J. HOUSER UNITED STATES BANKRUPTCY COURT NORTHERN DISTRICT OF TEXAS -------- ----- FORT WORTH DIVISION ---------- MONTHLY OPERATING REPORT MONTH ENDING: MARCH 31, 2001 -------------- IN ACCORDANCE WITH TITLE 28, SECTION 1746, OF THE UNITED STATES CODE, I DECLARE UNDER PENALTY OF PERJURY THAT I HAVE EXAMINED THE FOLLOWING MONTHLY OPERATING REPORT (ACCRUAL BASIS - 1 THROUGH ACCRUAL BASIS - 7) AND THE ACCOMPANYING ATTACHMENTS AND, TO THE BEST OF MY KNOWLEDGE, THESE DOCUMENTS ARE TRUE, CORRECT AND COMPLETE. DECLARATION OF THE PREPARER (OTHER THAN RESPONSIBLE PARTY): IS BASED ON ALL INFORMATION OF WHICH PREPARER HAS ANY KNOWLEDGE. RESPONSIBLE PARTY: /s/ JOSEPH P. TOMCZAK TREASURER --------------------------------------- ----------------------- Original Signature of Responsible Party Title JOSEPH P. TOMCZAK APRIL 27, 2001 --------------------------------------- ----------------------- Printed Name of Responsible Party Date PREPARER: /s/ DENNIS S. FAULKNER ACCOUNTANT FOR DEBTOR --------------------------------------- ----------------------- Original Signature of Preparer Title DENNIS S. FAULKNER APRIL 27, 2001 --------------------------------------- ----------------------- Printed Name of Preparer Date 2 CASE NAME: KEVCO COMPONENTS, INC. ACCRUAL BASIS - 1 CASE NUMBER: 401-40790-BJH-11 COMPARATIVE BALANCE SHEET
SCHEDULED MONTH MONTH ASSETS AMOUNT FEB-01 MAR-01 MONTH ------ ---------- ---------- ---------- ----- 1. Unrestricted Cash 134 134 6,050 2. Restricted Cash 0 3. Total Cash 134 134 6,050 0 4. Accounts Receivable (Net) 5. Inventory 6. Notes Receivable 7. Prepaid Expenses 8. Other (Attach List) 0 0 0 0 9. Total Current Assets 134 134 6,050 0 10. Property, Plant & Equipment 11. Less: Accumulated Depreciation/Depletion 12. Net Property, Plant & Equipment 0 0 0 0 13. Due From Insiders 14. Other Assets - Net of Amortization (Attach List) 0 0 0 0 15. Other (Attach List) 27,217,768 27,217,768 27,217,768 0 16. Total Assets 27,217,902 27,217,902 27,223,818 0 POST PETITION LIABILITIES 17. Accounts Payable 18. Taxes Payable 19. Notes Payable 20. Professional Fees 21. Secured Debt 22. Other (Attach List) 0 0 0 23. Total Post Petition Liabilities 0 0 0 PRE PETITION LIABILITIES 24. Secured Debt (FOOTNOTE) 75,885,064 63,113,388 63,113,388 25. Priority Debt 26. Unsecured Debt 27. Other (Attach List) 157,389,954 157,389,954 157,396,888 0 28. Total Pre Petition Liabilities 233,275,018 220,503,342 220,510,276 0 29. Total Liabilities 233,275,018 220,503,342 220,510,276 0 EQUITY 30. Pre Petition Owners' Equity (206,057,116) (206,057,116) 31. Post Petition Cumulative Profit Or (Loss) (1,018) 32. Direct Charges To Equity (Attach Explanation) (Footnote) 12,771,676 12,771,676 33. Total Equity (193,285,440) (193,286,458) 0 34. Total Liabilities and Equity 27,217,902 27,223,818 0
This form x does does not have related footnotes on Footnotes Supplement. --- --- 3 CASE NAME: KEVCO COMPONENTS, INC. SUPPLEMENT TO CASE NUMBER: 401-40790-BJH-11 ACCRUAL BASIS - 1 COMPARATIVE BALANCE SHEET
SCHEDULED MONTH MONTH ASSETS AMOUNT FEB-01 MAR-01 MONTH ------ ---------- ---------- ---------- ----- A. B. C. D. E. TOTAL OTHER ASSETS - LINE 8 0 0 0 0 A. B. C. D. E. TOTAL OTHER ASSETS NET OF AMORTIZATION - LINE 14 0 0 0 0 A. Investment In Subsidiaries 27,217,768 27,217,768 27,217,768 B. C. D. E. TOTAL OTHER ASSETS - LINE 15 27,217,768 27,217,768 27,217,768 0 POST PETITION LIABILITIES A. B. C. D. E. TOTAL OTHER POST PETITION LIABILITIES - LINE 22 0 0 0 PRE PETITION LIABILITIES Intercompany Payables A. (FOOTNOTE) 28,889,954 28,889,954 28,896,888 B. 10 3/8% Senior Sub. Notes 105,000,000 105,000,000 105,000,000 C. Sr. Sub. Exchangeable Notes 23,500,000 23,500,000 23,500,000 D. E. TOTAL OTHER PRE PETITION LIABILITIES - LINE 27 157,389,954 157,389,954 157,396,888 0
4 CASE NAME: KEVCO COMPONENTS, INC. ACCRUAL BASIS - 2 CASE NUMBER: 401-40790-BJH-11 INCOME STATEMENT
MONTH MONTH QUARTER REVENUES FEB-01 MAR-01 MONTH TOTAL -------- ------ ------ ----- ------- 1. Gross Revenues 0 0 2. Less: Returns & Discounts 0 3. Net Revenue 0 0 0 0 COST OF GOODS SOLD 4. Material 0 5. Direct Labor 0 6. Direct Overhead 0 7. Total Cost Of Goods Sold 0 0 0 0 8. Gross Profit 0 0 0 0 OPERATING EXPENSES 9. Officer / Insider Compensation 0 10. Selling & Marketing 0 11. General & Administrative 297 297 12. Rent & Lease 500 500 13. Other (Attach List) 221 221 14. Total Operating Expenses 0 1,018 0 1,018 15. Income Before Non-Operating Income & Expense 0 (1,018) 0 (1,018) OTHER INCOME & EXPENSES 16. Non-Operating Income (Att List) 0 17. Non-Operating Expense (Att List) 0 18. Interest Expense 0 19. Depreciation / Depletion 0 20. Amortization 0 21. Other (Attach List) 0 22. Net Other Income & Expenses 0 0 0 0 REORGANIZATION EXPENSES 23. Professional Fees 0 24. U.S. Trustee Fees 0 25. Other (Attach List) 0 26. Total Reorganization Expenses 0 0 0 0 27. Income Tax 0 28. Net Profit (Loss) 0 (1,018) 0 (1,018)
This form does X does not have related footnotes on Footnotes Supplement. --- --- 5 CASE NAME: KEVCO COMPONENTS, INC. SUPPLEMENT TO CASE NUMBER: 401-40790-BJH-11 ACCRUAL BASIS - 2 INCOME STATEMENT
MONTH MONTH QUARTER OPERATING EXPENSES FEB-01 MAR-01 MONTH TOTAL ------------------ ------ ------ ----- ------- A. Taxes 221 221 B. 0 C. 0 D. 0 E. 0 TOTAL OTHER OPERATING EXPENSES - LINE 13 0 221 0 221 OTHER INCOME & EXPENSES A. 0 B. 0 C. 0 D. 0 E. 0 TOTAL NON-OPERATING INCOME - LINE 16 0 0 0 0 A. 0 B. 0 C. 0 D. 0 E. 0 TOTAL NON-OPERATING EXPENSE - LINE 17 0 0 0 0 A. 0 B. 0 C. 0 D. 0 E. 0 TOTAL OTHER EXPENSE - LINE 21 0 0 0 0
6 CASE NAME: KEVCO COMPONENTS, INC. ACCRUAL BASIS - 3 CASE NUMBER: 401-40790-BJH-11
CASH RECEIPTS AND MONTH MONTH QUARTER DISBURSEMENTS FEB-01 MAR-01 MONTH TOTAL ------------- ------ ------ ----- ------- 1. Cash - Beginning Of Month SEE ATTACHED SUPPLEMENT AND FOOTNOTE RECEIPTS FROM OPERATIONS 2. Cash Sales 0 0 COLLECTION OF ACCOUNTS RECEIVABLE 3. Pre Petition 0 4. Post Petition 0 5. Total Operating Receipts 0 0 0 0 NON-OPERATING RECEIPTS 6. Loans & Advances (Attach List) 0 7. Sale of Assets 0 8. Other (Attach List) 0 9. Total Non-Operating Receipts 0 0 0 0 10. Total Receipts 0 0 0 0 11. Total Cash Available 0 0 0 0 OPERATING DISBURSEMENTS 12. Net Payroll 0 13. Payroll Taxes Paid 0 14. Sales, Use & Other Taxes Paid 0 15. Secured / Rental / Leases 0 16. Utilities 0 17. Insurance 0 18. Inventory Purchases 0 19. Vehicle Expenses 0 20. Travel 0 21. Entertainment 0 22. Repairs & Maintenance 0 23. Supplies 0 24. Advertising 0 25. Other (Attach List) 0 26. Total Operating Disbursements 0 0 0 0 REORGANIZATION DISBURSEMENTS 27. Professional Fees 0 28. U.S. Trustee Fees 0 29. Other (Attach List) 0 30. Total Reorganization Expenses 0 0 0 0 31. Total Disbursements 0 0 0 0 32. Net Cash Flow 0 0 0 0 33. Cash - End of Month 0 0 0 0
This form does X does not have related footnotes on Footnotes Supplement. --- --- 7 CASE NAME: KEVCO COMPONENTS, INC. SUPPLEMENT TO CASE NUMBER: 401-40790-BJH-11 ACCRUAL BASIS - 3 MARCH-01 -----------------
KEVCO KEVCO KEVCO KEVCO KEVCO KEVCO DIST LP MFG.LP MGMT HOLDING COMPONENTS INC TOTAL ---------- --------- ----------- ------- ---------- ------ ---------- 1 CASH-BEGINNING OF MONTH 41,529 (55,996) 17,746,282 232 134 1,000 17,733,181 RECEIPTS FROM OPERATIONS 2 CASH SALES 274,302 -- 274,302 COLLECTION OF ACCOUNTS RECEIVABLE 3 PRE PETITION 1,120,290 367,383 1,487,673 4 POST PETITION 15,181,617 6,014,122 21,195,739 5 TOTAL OPERATING RECEIPTS 16,576,209 6,381,505 -- -- -- -- 22,957,714 NON OPERATING RECEIPTS 6 LOANS & ADVANCES -- -- 7 SALE OF ASSETS 286 -- 286 8 OTHER -- -- -- -- 2,700 -- 2,700 SALE EXPENSE REIMBURSEMENT ADP ADVANCE MISC. 2,700 INTEREST INCOME 9 TOTAL NON OPERATING RECEIPTS 286 -- -- -- 2,700 -- 2,986 10 TOTAL RECEIPTS 16,576,495 6,381,505 -- -- 2,700 -- 22,960,700 11 CASH AVAILABLE 16,618,024 6,325,509 17,746,282 232 2,834 1,000 40,693,881 OPERATING DISBURSEMENTS 12 NET PAYROLL 2,105,173 1,038,694 250,403 3,394,270 13 PAYROLL TAXES PAID -- 1,538,108 221 221 1,538,550 14 SALES, USE & OTHER TAXES PAID 235 1,675 50 1,960 15 SECURED/RENTAL/LEASES 327,171 99,127 97,670 500 500 524,968 16 UTILITIES 119,696 124,447 344,565 38 38 588,784 17 INSURANCE 5,770 1,447 1,241,403 1,248,620 18 INVENTORY PURCHASES 3,246,839 2,943,026 6,189,865 19 VEHICLE EXPENSE 55,871 32,906 88,777 20 TRAVEL 17,371 11,694 512 29,577 21 ENTERTAINMENT 7,156 1,384 8,540 22 REPAIRS & MAINTENANCE 9,451 32,333 470 42,254 23 SUPPLIES 10,799 58,576 69,375 24 ADVERTISING -- -- -- 25 OTHER 394,411 226,566 214,929 179 259 -- 836,344 FREIGHT 357,913 143,548 501,461 CONTRACT LABOR 1,602 7,601 63,360 72,563 401 K PAYMENTS -- 151,450 151,450 PAYROLL TAX ADVANCE ADP -- WAGE GARNISHMENTS -- MISC. 34,896 75,417 119 179 259 110,870 26 TOTAL OPERATING DISBURSEMENTS 6,299,943 4,571,875 3,688,060 988 1,018 -- 14,561,884 REORGANIZATION DISBURSEMENTS 27 PROFESSIONAL FEES -- -- 28 US TRUSTEE FEES -- -- 29 OTHER 10,316,598 1,848,876 (12,155,474) (5,766) (4,234) -- -- LOAN PAYMENTS -- -- INTERCOMPANY TRANSFERS 10,316,598 1,848,876 (12,155,474) (5,766) (4,234) -- -- -- 30 TOTAL REORGANIZATION EXPENSE 10,316,598 1,848,876 (12,155,474) (5,766) (4,234) -- -- 31 TOTAL DISBURSEMENTS 16,616,541 6,420,751 (8,467,414) (4,778) (3,216) -- 14,561,884 32 NET CASH FLOW (40,046) (39,246) 8,467,414 4,778 5,916 -- 8,398,816 ---------- --------- ----------- ------ ------ ----- ---------- 33 CASH- END OF MONTH 1,483 (95,242) 26,213,696 5,010 6,050 1,000 26,131,997 ========== ========= =========== ====== ====== ===== ==========
8 CASE NAME: KEVCO COMPONENTS, INC. ACCRUAL BASIS - 4 CASE NUMBER: 401-40790-BJH-11
SCHEDULED MONTH MONTH ACCOUNTS RECEIVABLE AGING AMOUNT FEB-01 MAR-01 MONTH ------------------------- --------- ------ ------ ----- 1. 0 - 30 2. 31 - 60 3. 61 - 90 4. 91 + 5. Total Accounts Receivable 0 0 0 0 6. (Amount Considered Uncollectible) 7. Accounts Receivable (Net) 0 0 0 0
AGING OF POST PETITION MONTH: MARCH-01 TAXES AND PAYABLES -------------------
0 - 30 31 - 60 61 - 90 91 + TAXES PAYABLE DAYS DAYS DAYS DAYS TOTAL ------------- ------ ------- ------- ----- ----- 1. Federal 0 2. State 0 3. Local 0 4. Other (Attach List) 0 5. Total Taxes Payable 0 0 0 0 0 6. Accounts Payable 0
MONTH: MARCH-01 STATUS OF POST PETITION TAXES -------------------
AMOUNT BEGINNING TAX WITHHELD AND/OR ENDING TAX FEDERAL LIABILITY* ACCRUED (AMOUNT PAID) LIABILITY ------- ------------- --------------- ------------- ---------- 1. Withholding ** 0 2. FICA - Employee ** 221 (221) 0 3. FICA - Employer ** 0 4. Unemployment 0 5. Income 0 6. Other (Attach List) 0 7. Total Federal Taxes 0 221 (221) 0 STATE AND LOCAL 8. Withholding 0 9. Sales 0 10. Excise 0 11. Unemployment 0 12. Real Property 0 13. Personal Property 0 14. Other (Attach List) 0 15. Total State And Local 0 0 0 0 16. Total Taxes 0 221 (221) 0
* The beginning tax liability should represent the liability from the prior month or, if this is the first operating report, the amount should be zero. ** Attach photocopies of IRS Form 6123 or your FTD coupon and payment receipt to verify payment of deposit. This form does X does not have related footnotes on Footnotes Supplement. --- --- 9 CASE NAME: KEVCO COMPONENTS, INC. ACCRUAL BASIS - 5 CASE NUMBER: 401-40790-BJH-11 The debtor in possession must complete the reconciliation below for each bank account, including all general, payroll and tax accounts, as well as all savings and investment accounts, money market accounts, certificates of deposit, government obligations, etc. Accounts with restricted funds should be identified by placing an asterisk next to the account number. Attach additional sheets if necessary. MARCH-01 MONTH: --------------------------
BANK RECONCILIATIONS Account # 1 Account # 2 -------------------- ----------------- ----------- A. BANK: PNC Bank Delaware Other Accounts B. ACCOUNT NUMBER: 56-0359-4656 (Attach Sheet) TOTAL C. PURPOSE (TYPE): 1. Balance Per Bank Statement 6,050 6,050 2. Add: Total Deposits Not Credited -- 3. Subtract: Outstanding Checks -- 4. Other Reconciling Items -- 5. Month End Balance Per Books 6,050 -- 6,050 6. Number of Last Check Written 1015
INVESTMENT ACCOUNTS
DATE OF TYPE OF BANK, ACCOUNT NAME & NUMBER PURCHASE INSTRUMENT PURCHASE PRICE CURRENT VALUE --------------------------- -------- ---------- -------------- ------------- 7. 8. 9. 10. (Attach List) 11. Total Investments 0 0 CASH 12. Currency On Hand 0 13. Total Cash - End of Month 6,050
This form does X does not have related footnotes on Footnotes Supplement. --- --- 10 CASE NAME: KEVCO COMPONENTS, INC. ACCRUAL BASIS - 6 CASE NUMBER: 401-40790-BJH-11 MONTH: MARCH-01 ---------------------- PAYMENTS TO INSIDERS AND PROFESSIONALS Of the Total Disbursements shown for the month, list the amount paid to Insiders (as defined in Section 101 (31) (A) - (F) of the U.S. Bankruptcy Code) and to Professionals. Also, for payments to Insiders, identify the type of compensation paid (e.g. salary, bonus, commissions, insurance, housing allowance, travel, car allowance, etc.). Attach additional sheets if necessary. INSIDERS
TYPE OF AMOUNT PAID TO NAME PAYMENT PAID DATE ---- ------- ------ ------- 1. 2. 3. 4. 5. (Attach List) 6. Total Payments To Insiders 0 0
PROFESSIONALS
DATE OF COURT ORDER TOTAL TOTAL AUTHORIZING AMOUNT AMOUNT PAID TO INCURRED NAME PAYMENT APPROVED PAID DATE & UNPAID* ---- ----------- -------- ------ ------- --------- 1. 2. 3. 4. 5. (Attach List) 6. Total Payments To Professionals 0 0 0 0
* Include all fees incurred, both approved and unapproved POST PETITION STATUS OF SECURED NOTES, LEASES PAYABLE AND ADEQUATE PROTECTION PAYMENTS
SCHEDULED AMOUNTS TOTAL MONTHLY PAID UNPAID PAYMENTS DURING POST NAME OF CREDITOR DUE MONTH PETITION ---------------- --------- ------ -------- 1. 2. 3. 4. 5. (Attach List) 6. TOTAL 0 0 0
This form does X does not have related footnotes on Footnotes Supplement. --- --- 11 CASE NAME: KEVCO COMPONENTS, INC. ACCRUAL BASIS - 7 CASE NUMBER: 401-40790-BJH-11 MONTH: MARCH-01 ---------------------- QUESTIONNAIRE
YES NO --- -- 1. Have any Assets been sold or transferred outside the normal course of business this reporting period? X 2. Have any funds been disbursed from any account other than a debtor in possession account? X 3. Are any Post Petition Receivables (accounts, notes, or loans) due from related parties? X 4. Have any payments been made on Pre Petition Liabilities this reporting period? X 5. Have any Post Petition Loans been received by the debtor from any party? X 6. Are any Post Petition Payroll Taxes past due? X 7. Are any Post Petition State or Federal Income Taxes past due? X 8. Are any Post Petition Real Estate Taxes past due? X 9. Are any other Post Petition Taxes past due? X 10. Are any amounts owed to Post Petition creditors delinquent? X 11. Have any Pre Petition Taxes been paid during the reporting period? X 12. Are any wage payments past due? X
If the answer to any of the above questions is "Yes", provide a detailed explanation of each item. Attach additional sheets if necessary. INSURANCE
YES NO --- -- 1. Are Worker's Compensation, General Liability and other necessary insurance coverages in effect? X 2. Are all premium payments paid current? X 3. Please itemize policies below.
If the answer to any of the above questions is "No", or if any policies have been canceled or not renewed during this reporting period, provide an explanation below. Attach additional sheets if necessary. Debtor has no employees and no operations. INSTALLMENT PAYMENTS
PAYMENT AMOUNT TYPE OF POLICY CARRIER PERIOD COVERED & FREQUENCY -------------- ------- -------------- -------------- General Liability Liberty Mutual 9/1/00-9/1/01 Annual $313,520 Umbrella National Union 6/1/00-9/1/01 Annual $103,349
This form X does does not have related footnotes on Footnotes Supplement. --- --- 12 CASE NAME: KEVCO COMPONENTS, INC. FOOTNOTES SUPPLEMENT CASE NUMBER: 401-40790-BJH-11 ACCRUAL BASIS MONTH: MARCH-01 --------------------
ACCRUAL BASIS LINE FORM NUMBER NUMBER FOOTNOTE / EXPLANATION ------------- ------ ---------------------- 1 24 Pursuant to an Asset Purchase Agreement approved by the Court on February 23, 2001 and effective as of the same date among Kevco, Inc., Kevco Manufacturing, LP, Wingate Management Co. II, LP and Adorn LLC, certain assets and liabilities of Design Components, a division of Kevco Manufacturing, LP (Case No. 401-40784-BJH-11), were transferred to Adorn, LLC. At the effective date of purchase, Buyer assumed certain executory contracts, approximately $1.6 million of Kevco Manufacturing, LP's unsecured pre-petition liabilities, $3.5 million of accounts receivable, $5 million of inventory and $2.2 million (book value) of property and equipment. Payment was made directly to Bank of America, the secured lender, thereby reducing pre-petition secured debt. 1 27A Intercompany payables are to co-debtors Kevco Management Co. (Case No. 401-40788-BJH-11), Kevco Distribution, LP (Case No. 401-40789-BJH-11), Kevco Manufacturing, LP (Case No. 401-40784-BJH-11), Kevco Holding, Inc. (Case No. 401-40785-BJH-11), Kevco, Inc. (Case No. 401-40783-BJH-11), Kevco GP, Inc. (Case No. 401-40786-BJH-11), and DCM Delaware, Inc. (Case No. 401-40787-BJH-11). 1 32 The direct charge to equity is due to the secured debt reduction pursuant to the sale of Design Components (See Footnote 1-24). The secured debt owed to Bank of America by Kevco, Inc. (Case No. 401-40783-BJH-11) has been guaranteed by all of its co-debtors (See Footnote 1,27A); therefore, the secured debt is reflected as a liability on all of the Kevco entities. The charge to equity is simply an adjustment to the balance sheet. Kevco, Inc.'s report will reflect the cash portion of the transaction. 3 1 Pursuant to the February 12, 2001 Order (1) Authorizing Continued Use of Existing Forms and Records; (2) Authorizing Maintenance of Existing Corporate Bank Accounts and Cash Management System; and (3) Extending Time to Comply with 11 U.S.C. Section 345 Investment Guidelines, funds in the Bank of America and Key Bank deposit accounts are swept daily into Kevco's lead account number 1295026976. The Bank of America lead account is administered by, and held in the name of, Kevco Management Co. (co-debtor, Case No. 401-40788-BJH-11). Accordingly, all cash receipts and disbursements flow through Kevco Management's Bank of America DIP account. A schedule allocating receipts and disbursements among Kevco, Inc. and its subsidiaries is included in this report as a Supplement to Accrual Basis -3. Debtor does maintain a small petty cash account that is included in the cash supplement schedule.