EX-99.2 3 d88006ex99-2.txt APRIL OPERATING REPORT - KEVCO MANAGEMENT, INC. 1 EXHIBIT 99.2 CASE NAME: KEVCO MANAGEMENT, INC. ACCRUAL BASIS CASE NUMBER: 401-40788-BJH-11 JUDGE: BARBARA J. HOUSER UNITED STATES BANKRUPTCY COURT NORTHERN DISTRICT OF TEXAS -------- ----- FORT WORTH DIVISION ---------- MONTHLY OPERATING REPORT MONTH ENDING: APRIL 30, 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 MAY 29, 2001 --------------------------------------- ------------------------------ Printed Name of Responsible Party Date PREPARER: /s/ DENNIS S. FAULKNER ACCOUNTANT FOR DEBTOR --------------------------------------- ------------------------------ Original Signature of Preparer Title DENNIS S. FAULKNER MAY 29, 2001 --------------------------------------- ------------------------------ Printed Name of Preparer Date 2 CASE NAME: KEVCO MANAGEMENT, INC. ACCRUAL BASIS - 1 CASE NUMBER: 401-40788-BJH-11 COMPARATIVE BALANCE SHEET
SCHEDULED MONTH MONTH MONTH ASSETS AMOUNT FEB-01 MAR-01 APR-01 ------ --------- ---------- ---------- --------- 1. Unrestricted Cash (FOOTNOTE) 6,557,974 17,746,282 26,213,696 15,894,069 2. Restricted Cash 3. Total Cash 6,557,974 17,746,282 26,213,696 15,894,069 4. Accounts Receivable (Net) 5. Inventory 6. Notes Receivable 7. Prepaid Expenses (FOOTNOTE) 3,450,681 2,824,027 1,920,893 1,994,525 8. Other (Attach List) 263,606 269,703 269,703 117,209 9. Total Current Assets 10,272,261 20,840,012 28,404,292 18,005,803 10. Property, Plant & Equipment 3,285,885 3,285,886 3,248,949 3,243,080 11. Less: Accumulated Depreciation/Depletion (1,753,163) (1,805,114) (1,836,750) (1,884,378) 12. Net Property, Plant & Equipment 1,532,722 1,480,772 1,412,199 1,358,702 13. Due From Insiders 14. Other Assets - Net of Amortization (Attach List) 36,082 36,001 35,921 35,841 15. Other (Attach List) 153,399,371 119,191,133 119,290,012 142,088,255 16. Total Assets 165,240,436 141,547,918 149,142,424 161,488,601 POST PETITION LIABILITIES 17. Accounts Payable 301,078 355,015 285,864 18. Taxes Payable 6,359 7,414 8,469 19. Notes Payable 20. Professional Fees 21. Secured Debt 22. Other (Attach List) (FOOTNOTE) 4,650,723 3,685,786 4,044,340 23. Total Post Petition Liabilities 4,958,159 4,048,215 4,338,673 PRE PETITION LIABILITIES 24. Secured Debt (FOOTNOTE) 75,885,064 63,113,388 63,113,388 41,900,067 25. Priority Debt (FOOTNOTE) 200,832 91,281 91,281 91,281 26. Unsecured Debt 1,779,701 2,486,489 1,421,970 1,465,072 27. Other (Attach List) 242,243,558 256,778,148 267,034,923 280,463,959 28. Total Pre Petition Liabilities 320,109,155 322,469,306 331,661,562 323,920,379 29. Total Liabilities 320,109,155 327,427,466 335,709,777 328,259,052 EQUITY 30. Pre Petition Owners' Equity (154,868,719) (154,868,719) (154,868,719) 31. Post Petition Cumulative Profit Or (Loss) (367,705) (1,055,510) (2,113,462) 32. Direct Charges To Equity (Attach Explanation FOOTNOTE) (30,643,124) (30,643,124) (9,788,270) 33. Total Equity (185,879,548) (186,567,353) (166,770,452) 34. Total Liabilities and Equity 141,547,918 149,142,424 161,488,600
This form x does does not have related footnotes on Footnotes Supplement. --- --- 3 CASE NAME: KEVCO MANAGEMENT, INC. SUPPLEMENT TO CASE NUMBER: 401-40788-BJH-11 ACCRUAL BASIS - 1 COMPARATIVE BALANCE SHEET
SCHEDULED MONTH MONTH MONTH ASSETS AMOUNT FEB-01 MAR-01 APR-01 ------ --------- ------ ------ ------ A. Security Deposit 8,794 8,794 8,794 8,794 B. Cash Surrender Value: Life Ins. 254,812 260,909 260,909 108,415 C. D. E. TOTAL OTHER ASSETS - LINE 8 263,606 269,703 269,703 117,209 A. Organizational Costs 36,082 36,001 35,921 35,841 B. C. D. E. TOTAL OTHER ASSETS NET OF AMORTIZATION - LINE 14 36,082 36,001 35,921 35,841 A. Intercompany Receivables (FOOTNOTE) 113,743,558 79,377,508 79,318,574 102,116,817 B. Intercompany Royalties 39,655,813 39,813,625 39,971,438 39,971,438 C. D. E. TOTAL OTHER ASSETS - LINE 15 153,399,371 119,191,133 119,290,012 142,088,255 POST PETITION LIABILITIES A. Accrued Liabilities Other 1,053,230 512,018 1,047,301 B. Deferred Compensation 960,371 960,371 960,371 C. 401K Contribution 32,932 31,321 13,274 D. Accrued Health Claims 1,300,036 991,237 874,190 E. Accrued Payroll 1,125,642 1,062,327 1,020,692 F. Acc. Professional Fees 178,512 128,512 128,512 G. TOTAL OTHER POST PETITION LIABILITIES - LINE 22 4,650,723 3,685,786 4,044,340 PRE PETITION LIABILITIES A. Intercompany Payables (FOOTNOTE) 113,743,558 128,278,148 138,534,923 151,963,959 B. 10 3/8% Senior Sub. Notes 105,000,000 105,000,000 105,000,000 105,000,000 C. Sr. Sub. Exchangeable Notes 23,500,000 23,500,000 23,500,000 23,500,000 D. E. TOTAL OTHER PRE PETITION LIABILITIES - LINE 27 242,243,558 256,778,148 267,034,923 280,463,959
4 CASE NAME: KEVCO MANAGEMENT, INC. ACCRUAL BASIS - 2 CASE NUMBER: 401-40788-BJH-11 INCOME STATEMENT
MONTH MONTH MONTH QUARTER REVENUES FEB-01 MAR-01 APR-01 TOTAL -------- ------- -------- ---------- ---------- 1. Gross Revenues 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 45,063 45,028 71,400 161,491 10. Selling & Marketing 16,372 5,132 (161) 21,343 11. General & Administrative 120,177 190,404 178,094 488,675 12. Rent & Lease 38,622 50,028 48,590 137,240 13. Other (Attach List) 248,419 370,113 167,245 785,777 14. Total Operating Expenses 468,653 660,705 465,168 1,594,526 15. Income Before Non-Operating Income & Expense (468,653) (660,705) (465,168) (1,594,526) OTHER INCOME & EXPENSES 16. Non-Operating Income (Att List) 789,394 682,857 118,278 1,590,529 17. Non-Operating Expense (Att List) 0 0 217,203 217,203 18. Interest Expense 0 19. Depreciation / Depletion 52,032 53,879 50,926 156,837 20. Amortization 0 0 21. Other (Attach List) 0 22. Net Other Income & Expenses 737,362 628,978 (149,851) 1,216,489 REORGANIZATION EXPENSES 23. Professional Fees 636,414 656,079 442,932 1,735,425 24. U.S. Trustee Fees 0 25. Other (Attach List) 0 26. Total Reorganization Expenses 636,414 656,079 442,932 1,735,425 27. Income Tax 0 28. Net Profit (Loss) (367,705) (687,806) (1,057,951) (2,113,462)
This form does x does not have related footnotes on Footnotes Supplement. --- --- 5 CASE NAME: KEVCO MANAGEMENT, INC. SUPPLEMENT TO CASE NUMBER: 401-40788-BJH-11 ACCRUAL BASIS - 2 INCOME STATEMENT
MONTH MONTH MONTH QUARTER OPERATING EXPENSES FEB-01 MAR-01 APR-01 TOTAL ------------------ ------- ------- ------ ------ A. Payroll 187,266 248,360 71,367 506,994 B. Insurance 27,207 28,059 25,043 80,309 C. Utilities & Telephone 12,780 31,434 15,650 59,864 D. Taxes 21,166 62,259 10,941 94,366 E. Management Fees 44,244 44,244 TOTAL OTHER OPERATING EXPENSES - LINE 13 248,419 370,113 167,245 785,777 OTHER INCOME & EXPENSES A. Interest and Misc. Income 3,904 112,980 95,364 212,248 B. Intercompany Operating Fees 380,423 112,675 22,914 516,012 C. Interco. Management Fees 315,625 157,813 473,438 D. Intercompany Information Technology Fee 89,442 3,080 92,522 E. Write off uncleared AP checks 296,309 296,309 TOTAL NON-OPERATING INCOME - LINE 16 789,394 682,857 118,278 1,590,529 A. Correction of Error on Books (FOOTNOTE) 217,203 217,203 B. 0 C. 0 D. 0 E. 0 TOTAL NON-OPERATING EXPENSE - LINE 17 0 0 217,203 217,203 REORGANIZATION EXPENSES A. 0 B. 0 C. 0 D. 0 E. 0 TOTAL OTHER REORGANIZATION EXPENSES - LINE 25 0 0 0 0
6 CASE NAME: KEVCO MANAGEMENT, INC. ACCRUAL BASIS - 3 CASE NUMBER: 401-40788-BJH-11
CASH RECEIPTS AND MONTH MONTH MONTH QUARTER DISBURSEMENTS FEB-01 MAR-01 APR-01 TOTAL ------------- ------ ------ ------ ------ 1. Cash - Beginning Of Month SEE ATTACHED SUPPLEMENT AND FOOTNOTE RECEIPTS FROM OPERATIONS 2. Cash Sales 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 x does does not have related footnotes on Footnotes Supplement. --- ---- 7 CASE NAME: KEVCO MANAGEMENT, INC. SUPPLEMENT TO ACCRUAL BASIS -3 APRIL, 2001 CASE NUMBER: 401-40788-BJH-11 CASH RECEIPTS AND DISBURSEMENTS
DIST LP MFG MGMT HOLDING COMP KEVCO INC TOTAL --------- ---------- ---------- ------- ----- --------- ---------- 1 CASH-BEGINNING OF MONTH 1,483 (95,242) 26,213,696 5,010 6,050 1,000 26,131,997 RECEIPTS FROM OPERATIONS 2 CASH SALES 121,372 -- 121,372 COLLECTION OF ACCOUNTS RECEIVABLE 3 PRE PETITION 61,354 -- 61,354 4 POST PETITION 7,225,297 4,705,194 11,930,491 5 TOTAL OPERATING RECEIPTS 7,408,023 4,705,194 -- -- -- -- 12,113,217 NON OPERATING RECEIPTS 6 LOANS & ADVANCES -- -- 7 SALE OF ASSETS 38,500 7,012,936 7,051,436 8 OTHER 171,186 -- 87,708 -- -- -- 258,894 INTERCOMPANY TRANSFERS (4,591,461) (2,381,789) 6,973,250 -- -- -- SALE EXPENSE REIMBURSEMENT LIFE INSURANCE CASH VALUE 152,493 RENT 16,000 TAX REFUND 2,693 MISC -- INTEREST INCOME 87,708 9 TOTAL NON OPERATING RECEIPTS (4,381,775) 4,631,147 7,060,958 -- -- -- 7,310,330 10 TOTAL RECEIPTS 3,026,248 9,336,341 7,060,958 -- -- -- 19,423,547 11 CASH AVAILABLE 3,027,731 9,241,099 33,274,654 5,010 6,050 1,000 45,555,544 OPERATING DISBURSEMENTS 12 NET PAYROLL 500,771 560,149 112,437 1,173,357 13 PAYROLL TAXES PAID -- 524,486 524,486 14 SALES, USE & OTHER TAXES PAID 9,429 770 10,199 15 SECURED/RENTAL/LEASES 496,959 130,335 71,718 699,012 16 UTILITIES 100,185 88,360 211,235 399,780 17 INSURANCE 6,099 -- 597,388 603,487 18 INVENTORY PURCHASES 1,269,266 1,178,079 2,447,345 19 VEHICLE EXPENSE 64,627 10,109 74,736 20 TRAVEL 21,689 12,853 643 35,185 21 ENTERTAINMENT -- 369 369 22 REPAIRS & MAINTENANCE 2,617 19,292 2,790 24,699 23 SUPPLIES 9,375 40,685 50,060 24 ADVERTISING -- -- -- 25 OTHER 546,714 7,266,715 15,367,241 -- -- -- 23,180,670 LOAN PAYMENTS 324,609 7,012,936 15,000,000 22,337,545 FREIGHT 97,953 152,540 250,493 CONTRACT LABOR 617 1,976 31,937 34,530 401K PAYMENTS -- 157,719 157,719 PAYROLL TAX ADVANCE ADP -- WAGE GARNISHMENTS -- MISC. 123,535 99,263 177,585 400,383 26 TOTAL OPERATING DISBURSEMENTS 3,027,731 9,307,716 16,887,938 -- -- -- 29,223,385 REORGANIZATION DISBURSEMENTS 27 PROFESSIONAL FEES -- 492,647 492,647 28 US TRUSTEE FEES -- -- 29 OTHER -- 30 TOTAL REORGANIZATION EXPENSE -- -- 492,647 -- -- -- 492,647 31 TOTAL DISBURSEMENTS 3,027,731 9,307,716 17,380,585 -- -- -- 29,716,032 32 NET CASH FLOW (1,483) 28,625 (10,319,627) -- -- -- (10,292,485) 33 CASH - END OF MONTH -- (66,617) 15,894,069 5,010 6,050 1,000 15,839,512
8 CASE NAME: KEVCO MANAGEMENT, INC. ACCRUAL BASIS - 4 CASE NUMBER: 401-40788-BJH-11
SCHEDULED MONTH MONTH MONTH ACCOUNTS RECEIVABLE AGING AMOUNT FEB-01 MAR-01 APR-01 ------------------------- ------- ------ ------ ------ 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: April-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 (See below) 1,055 7,414 8,469 5. Total Taxes Payable 1,055 7,414 0 0 8,469 6. Accounts Payable 59,887 878 225,099 285,864
STATUS OF POST PETITION TAXES MONTH: April-01 -------------
BEGINNING TAX AMOUNT WITHHELD ENDING TAX FEDERAL LIABILITY* AND/OR ACCRUED (AMOUNT PAID) LIABILITY ------- ------------- --------------- ------------- --------- 1. Withholding** 26,660 (26,660) 0 2. FICA - Employee** 12,006 (12,006) 0 3. FICA - Employer** 12,006 (12,006) 0 4. Unemployment 30 (30) 0 5. Income 0 0 6. Other (Attach List) 0 7. Total Federal Taxes 0 50,702 (50,702) 0 STATE AND LOCAL 8. Withholding 168 (168) 0 9. Sales (FOOTNOTE) 6,412 0 6,412 10. Excise 0 0 11. Unemployment 207 (207) 0 12. Real Property (FOOTNOTE) 1,002 1,055 0 2,057 13. Personal Property 0 0 14. Other (Attach List) 0 0 15. Total State And Local 7,414 1,430 (375) 8,469 16. Total Taxes 7,414 52,132 (51,077) 8,469
* 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 x does does not have related footnotes on Footnotes Supplement. --- --- 9 CASE NAME: KEVCO MANAGEMENT, INC. ACCRUAL BASIS - 5 CASE NUMBER: 401-40788-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. MONTH: APRIL-01 -------------
BANK RECONCILIATIONS Account # 1 Account # 2 -------------------- ----------------- ---------------- A. BANK: Bank of America Bank of America Other Accounts B. ACCOUNT NUMBER: 1295026976 3751629012 (Attach List) TOTAL C. PURPOSE (TYPE): Operating Account DIP Disbursement Account 1. Balance Per Bank Statement 1,195,547 661,051 14,841,836 16,698,434 2. Add: Total Deposits Not Credited 0 0 3. Subtract: Outstanding Checks (638,265) (146,578) (784,843) 4. Other Reconciling Items 47,032 (67,554) (20,522) 5. Month End Balance Per Books 604,314 661,051 14,627,704 15,893,069 6. Number of Last Check Written N/A N/A
INVESTMENT ACCOUNTS
BANK, ACCOUNT NAME & NUMBER DATE OF PURCHASE TYPE OF INSTRUMENT PURCHASE PRICE CURRENT VALUE --------------------------- ---------------- ------------------ -------------- ------------- 7. 8. 9. 10. (Attach List) 11. Total Investments 0 0 CASH 12. Currency On Hand 1,000 13. Total Cash - End of Month (Footnote) 15,894,069
This form x does does not have related footnotes on Footnotes Supplement. --- --- 10 CASE NAME: KEVCO MANAGEMENT, INC. SUPPLEMENT TO CASE NUMBER: 401-40788-BJH-11 ACCRUAL BASIS - 5 MONTH: APRIL-01 -------------
BANK RECONCILIATIONS Account # 3 Account # 4 Account # 5 -------------------- ----------- ----------- ----------- A. BANK: Bank of America/ Nations Funds Bank of America TOTAL B. ACCOUNT NUMBER: 846713 3751775241 OTHER BANK C. PURPOSE (TYPE): Kevco, Inc. S-T ACCOUNTS Investment Stay Pay 1. Balance Per Bank Statement 13,692,684 984,081 14,676,765 2. Add: Total Deposits Not Credited 0 3. Subtract: Outstanding Checks 0 4. Other Reconciling Items 0 5. Month End Balance Per Books 13,692,684 984,081 14,676,765 6. Number of Last Check Written N/A N/A
INVESTMENT ACCOUNTS
DATE OF TYPE OF BANK, ACCOUNT NAME & NUMBER PURCHASE INSTRUMENT PURCHASE PRICE CURRENT VALUE --------------------------- -------- ---------- -------------- ------------- A. B. C. D. TOTAL OTHER INVESTMENT ACCOUNTS - LINE 10 0 0
11 CASE NAME: KEVCO MANAGEMENT, INC. 2ND SUPPLEMENT TO CASE NUMBER: 401-40788-BJH-11 ACCRUAL BASIS - 5 MONTH: APRIL-01 -------------
BANK RECONCILIATIONS Account # 6 Account # 7 Account # 8 -------------------- --------------- --------------- ---------------- A. BANK: Bank of America Bank of America Bank of America TOTAL B. ACCOUNT NUMBER: 1295027040 3750768628 3750801912 OTHER BANK C. PURPOSE (TYPE): Payroll-Dist Payroll-MFG Payroll-Mgmt ACCOUNTS 1. Balance Per Bank Statement 72,183 69,958 22,930 165,071 2. Add: Total Deposits Not Credited 0 3. Subtract: Outstanding Checks (146,578) (146,578) 4. Other Reconciling Items (67,554) (67,554) 5. Month End Balance Per Books (141,949) 69,958 22,930 (49,061) 6. Number of Last Check Written N/A N/A N/A
INVESTMENT ACCOUNTS
DATE OF TYPE OF BANK, ACCOUNT NAME & NUMBER PURCHASE INSTRUMENT PURCHASE PRICE CURRENT VALUE --------------------------- -------- ---------- -------------- ------------- A. B. C. D. TOTAL OTHER INVESTMENT ACCOUNTS - LINE 10 0 0
12 CASE NAME: KEVCO MANAGEMENT, INC. ACCRUAL BASIS - 6 CASE NUMBER: 401-40788-BJH-11 MONTH: APRIL-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 TOTAL PAID NAME PAYMENT PAID TO DATE ---- ------- ----- ------- 1. Sharon Romere Expense Reimb. 0 240 2. Joe Tomczak Expense Reimb. 110 371 3. John Wittig Expense Reimb. 0 263 4. Sharon Romere Payroll 8,077 21,923 5. Joe Tomczak Payroll 20,192 54,808 6. John Wittig Payroll 14,135 37,692 7. Will Simpson Payroll 9,886 27,194 Other (see attached) 19,000 19,000 8. Total Payments To Insiders 71,400 142,491
PROFESSIONALS
DATE OF COURT ORDER TOTAL AUTHORIZING AMOUNT AMOUNT TOTAL PAID INCURRED NAME PAYMENT APPROVED PAID TO DATE & UNPAID* ---- ---------- -------- ------- ---------- --------- 1. Haynes and Boone 03/20/01 492,647 492,647 492,647 361,375 2. Lain, Faulkner & Co., P.C. 03/20/01 0 0 0 173,349 3. 4. 5. (Attach List) 6. Total Payments To Professionals 492,647 492,647 492,647 534,724
* 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 PAYMENT DURING POST NAME OF CREDITOR DUE MONTH PETITION ---------------- -------- ------- -------- 1. Bank of America (FOOTNOTE) N/A 21,213,321 41,900,067 2. Leases Payable (FOOTNOTE) (Not Available) 3. 4. 5. (Attach List) 6. TOTAL 0 21,213,321 41,900,067
This form x does does not have related footnotes on Footnotes Supplement. --- --- 13 CASE NAME: KEVCO MANAGEMENT, INC. SUPPLEMENT TO CASE NUMBER: 401-40788-BJH-11 ACCRUAL BASIS - 6 PAYMENTS TO INSIDERS AND PROFESSIONALS MONTH: APR-01 ------------ INSIDERS
TYPE OF AMOUNT TOTAL PAID NAME PAYMENT PAID TO DATE ---- ------- ------ ---------- A. Bill Estes Director's Fees 6,500 6,500 B. Peter McKee Director's Fees 6,000 6,000 C. Richard Nevins Director's Fees 6,500 6,500 D. E. F. G. H. TOTAL OTHER PAYMENTS TO INSIDERS - LINE 5 19,000 19,000
PROFESSIONALS
DATE OF COURT ORDER TOTAL AUTHORIZING AMOUNT TOTAL PAID INCURRED & NAME PAYMENT PAID TO DATE UNPAID* ---- ----------- ------ ---------- ----------- A. B. C. D. E. F. G. H. TOTAL OTHER PAYMENTS TO PROFESSIONALS-LINE 5
* Include all fees incurred, both approved and unapproved POST PETITION STATUS OF SECURED NOTES, LEASES PAYABLE AND ADEQUATE PROTECTION PAYMENTS
SCHEDULED AMOUNT TOTAL MONTHLY PAID UNPAID PAYMENTS DURING POST NAME OF CREDITOR DUE MONTH PETITION ---------------- --------- ------ ---------- A. B. C. D. E. STATUS OF OTHER CREDITORS - LINE 5
14 CASE NAME: KEVCO MANAGEMENT, INC. ACCRUAL BASIS - 7 CASE NUMBER: 401-40788-BJH-11 MONTH: APRIL-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. SEE FOOTNOTE 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. INSTALLMENT PAYMENTS
TYPE OF POLICY CARRIER PERIOD COVERED PAYMENT AMOUNT & FREQUENCY -------------- ------- -------------- -------------------------- Property Lexingon, Allianz 5/29/00-5/29/01 Annual $ 3,632 Group Health Blue Cross Blue Shield Self Insured - Renews Annual Annual $141,036 Auto Liberty Mutual 9/1/00-9/1/01 Annual $ 6,030 Fiduciary Federal Insurance 7/15/00-9/1/01 Annual $ 10,800 Employee Practices Federal Insurance 6/30/99-6/30/01 Annual $ 72,800 Crimeguard National Union 6/30/00-9/1/01 Annual $ 10,873 D&O Liability Great American 10/31/98-10/31/01 Annual $ 71,250
This form x does does not have related footnotes on Footnotes Supplement. --- --- 15 CASE NAME: KEVCO MANAGEMENT, INC. FOOTNOTES SUPPLEMENT CASE NUMBER: 401-40788-BJH-11 ACCRUAL BASIS MONTH: April-01 --------
ACCRUAL BASIS FORM LINE NUMBER NUMBER FOOTNOTE / EXPLANATION -------- ------ ---------------------- 1 1 Pursuant to the February 12, 2001 Order (1) Authorizing 3 1 Continued Use of Existing Forms and Records; (2) Authorizing 5 13 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. 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. 1 7 Prepaid Expenses consist of payroll, rent, insurance and other miscellaneous items. The largest prepaid item, payroll, is due to the timing difference between transfers to ADP payroll service and distribution of payroll checks. 1 15A Intercompany receivables/payables are from/to co-debtors Kevco 1 27A Manufacturing, LP (Case No. 401-40784-BJH-11), Kevco 7 3 Distribution, LP (Case No. 401-40789-BJH-11), Kevco Holding, Inc. (Case No. 401-40785-BJH-11), DCM Delaware, Inc. (Case No. 401-40787-BJH-11), Kevco GP, Inc. (Case No. 401-40786-BJH-11), Kevco Components, Inc. (Case No. 401-40790-BJH-11), and Kevco, Inc. (Case No. 401-40783-BJH-11). Although intercompany balances increased post-petition, the increase has not been reflected as post-petition assets and liabilities. 1 15A Intercompany assets were inadvertently misstated on Debtor's 1 32 Schedules. The February adjustment to equity corrected the error. The April adjustment to equity is due to a secured debt reduction pursuant to the sale of Kevco Manufacturing, LP's operating division (Sunbelt Wood), as well as a direct cash payment of $15 million (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. 1 22 The Debtor records on its books accruals for certain liabilities 2 17A based on historical estimates. While the known creditors were listed on the Debtor's Schedules, the estimated amounts were not. Accordingly, for purposes of this report, the accrued liabilities are reflected as post-petition "Accrued Liabilities." During an internal audit of the accrued liabilities account during April, an error was discovered and corrected.
16 CASE NAME: KEVCO MANAGEMENT, INC. FOOTNOTES SUPPLEMENT CASE NUMBER: 401-40788-BJH-11 ACCRUAL BASIS MONTH: April-01 --------
ACCRUAL BASIS FORM LINE NUMBER NUMBER FOOTNOTE/EXPLANATION -------- ------ ---------------------- 1 1 (A) Pursuant to an Asset Purchase Agreement approved by the Court on February 1 24 23, 2001 and effective as of the same date among Kevco, Inc., Kevco 6 1 Manufacturing, LP, Wingate Management Co. II, LP and Adorn LLC, certain assets 7 4 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. (B) Pursuant to an Asset Purchase Agreement approved by the Court on April 3, 2001 and effective as of the same date, Universal Forest Products Eastern Division, Inc. purchased the assets (inventory, equipment, machinery and five of the seven facilities at which Sunbelt Wood Components Division operates) of the Sunbelt division of Kevco Manufacturing, LP. Approximately $7 million in sales proceeds were paid directly to Bank of America thereby reducing pre-petition secured debt. (C) Debtor paid $15 million from available cash during April to Bank of America to reduce pre-petition secured debt. 1 25 Pursuant to Order dated February 12, 2001 and Supplemental Order dated March 14, 2001, debtors were authorized to pay pre-petition salaries and wages up to a maximum of $4,300 per employee. Debtors were also (a) allowed to pay accrued vacation to terminated employees and (b) permitted to continue allowing employees to use vacation time as scheduled. 4 9,12 Sales / property tax liabilities represent accruals of tax and are not yet due. 6 2 The Debtor is the lessee on hundreds of real and personal property leases, the vast majority of which have been or will soon be rejected. The Debtor does not isolate monthly payments due or paid on account of such leases. Instead, all lease payments are reflected in the Debtor's accounts payable system. To separately identify monthly accruals and payments on leases would require an enormous outlay of the Debtor's accounting personnel and professionals. The Debtor simply does not have available to it the resources that would be required to provide the detail requested. If any party-in-interest desires specific information about any specific lease, the Debtor will provide such information upon request.