EX-99.6 7 d88006ex99-6.txt APRIL OPERATING REPORT - DCM DELAWARE, INC. 1 EXHIBIT 99.6 CASE NAME: DCM DELAWARE, INC. ACCRUAL BASIS CASE NUMBER: 401-40787-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: DCM DELAWARE, INC. ACCRUAL BASIS - 1 CASE NUMBER: 401-40787-BJH-11 COMPARATIVE BALANCE SHEET
SCHEDULED MONTH MONTH MONTH ASSETS AMOUNT FEB-01 MAR-01 APR-01 ------ --------- ------ ------ ------ 1. Unrestricted Cash 0 2. Restricted Cash 0 3. Total Cash 0 0 0 0 4. Accounts Receivable (Net) 5. Inventory 6. Notes Receivable 7. Prepaid Expenses 8. Other (Attach List) 9. Total Current Assets 0 0 0 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) 0 0 0 0 16. Total Assets 0 0 0 0 POST PETITION LIABILITIES 17. Accounts Payable 645 393 393 18. Taxes Payable 19. Notes Payable 20. Professional Fees 21. Secured Debt 22. Other (Attach List) 23. Total Post Petition Liabilities 645 393 393 PRE PETITION LIABILITIES 24. Secured Debt (FOOTNOTE) 75,885,064 63,113,388 63,113,388 41,900,067 25. Priority Debt 26. Unsecured Debt 27. Other (Attach List) 128,928,814 128,928,814 128,929,066 128,929,152 28. Total Pre Petition Liabilities 204,813,878 192,042,202 192,042,454 170,829,219 29. Total Liabilities 204,813,878 192,042,847 192,042,847 170,829,612 EQUITY 30. Pre Petition Owners' Equity (204,813,878) (204,813,878) (204,813,878) 31. Post Petition Cumulative Profit Or (Loss) (645) (645) (730) 32. Direct Charges To Equity 12,771,676 12,771,676 33,984,996 33. Total Equity (192,042,847) (192,042,847) (170,829,612) 34. Total Liabilities and Equity 0 0 0
This form x does does not have related footnotes on Footnotes Supplement. --- --- 3 CASE NAME: DCM DELAWARE, INC. SUPPLEMENT TO CASE NUMBER: 401-40787-BJH-11 ACCRUAL BASIS - 1 COMPARATIVE BALANCE SHEET
SCHEDULED MONTH MONTH MONTH ASSETS AMOUNT FEB-01 MAR-01 APR-01 ------ --------- ------ ------ ------ 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. B. C. D. E. TOTAL OTHER ASSETS - LINE 15 0 0 0 0 POST PETITION LIABILITIES A. B. C. D. E. TOTAL OTHER POST PETITION LIABILITIES - LINE 22 0 0 0 PRE PETITION LIABILITIES A. Interco. Payables (FOOTNOTE) 428,814 428,814 429,066 429,152 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 27 128,928,814 128,928,814 128,929,066 128,929,152
4 CASE NAME: DCM DELAWARE, INC. ACCRUAL BASIS - 2 CASE NUMBER: 401-40787-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 0 10. Selling & Marketing 0 11. General & Administrative 0 12. Rent & Lease 645 85 730 13. Other (Attach List) 0 14. Total Operating Expenses 645 0 85 730 15. Income Before Non-Operating Income & Expense (645) 0 (85) (730) 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) (645) 0 (85) (730)
This form does X does not have related footnotes on Footnotes Supplement. --- --- 5 CASE NAME: DCM DELAWARE, INC. ACCRUAL BASIS - 3 CASE NUMBER: 401-40787-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) 0 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. --- --- 6 CASE NAME: DCM DELAWARE, INC. SUPPLEMENT TO ACCRUAL BASIS - 3 APRIL, 2001 CASE NUMBER: 401-40787-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 34,530 401 K 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
7 CASE NAME: DCM DELAWARE, INC. ACCRUAL BASIS - 4 CASE NUMBER: 401-40787-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 (Attach List) 0 5. Total Taxes Payable 0 0 0 0 0 6. Accounts Payable 0 393 0 0 393
MONTH: APRIL-01 -------------- STATUS OF POST PETITION TAXES
BEGINNING TAX AMOUNT WITHHELD ENDING TAX FEDERAL LIABILITY * AND/OR ACCRUED (AMOUNT PAID) LIABILITY ------- ------------- --------------- ------------- ---------- 1. Withholding ** 0 2. FICA - Employee ** 0 3. FICA - Employer ** 0 4. Unemployment 0 5. Income 0 6. Other (Attach List) 0 7. Total Federal Taxes 0 0 0 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 0 0 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. --- --- 8 CASE NAME: DCM DELAWARE, INC. ACCRUAL BASIS - 5 CASE NUMBER: 401-40787-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: Other Accounts B. ACCOUNT NUMBER: (Attach List) TOTAL C. PURPOSE (TYPE): 1. Balance Per Bank Statement 0 2. Add: Total Deposits Not Credited 0 3. Subtract: Outstanding Checks 0 4. Other Reconciling Items 0 5. Month End Balance Per Books 0 0 0 6. Number of Last Check Written
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 0
This form does x does not have related footnotes on Footnotes Supplement. --- --- 9 CASE NAME: DCM DELAWARE, INC. ACCRUAL BASIS - 6 CASE NUMBER: 401-40787-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. 2. 3. 4. 5. (Attach List) 6. Total Payments To Insiders 0 0
PROFESSIONALS
DATE OF COURT ORDER TOTAL AUTHORIZING AMOUNT AMOUNT TOTAL PAID INCURRED NAME PAYMENT APPROVED PAID TO 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. --- --- 10 CASE NAME: DCM DELAWARE, INC. ACCRUAL BASIS - 7 CASE NUMBER: 401-40787-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 1, 24 (B) AND (C) 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 operations. INSTALLMENT PAYMENTS
TYPE OF POLICY CARRIER PERIOD COVERED PAYMENT AMOUNT & 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 does x does not have related footnotes on Footnotes Supplement. --- --- 11 CASE NAME: DCM DELAWARE, INC. FOOTNOTES SUPPLEMENT CASE NUMBER: 401-40787-BJH-11 ACCRUAL BASIS MONTH: APRIL-01 --------------
ACCRUAL BASIS FORM LINE NUMBER NUMBER FOOTNOTE / EXPLANATION ------ ------ ---------------------- 1 24 (A) Pursuant to an Asset Purchase Agreement approved by the Court on 7 4 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. (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, L.P. 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 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 Kevco Components, Inc. (Case No. 401-40790-BJH-11). 1 32 The direct charges to equity are due to the secured debt reductions pursuant to sales of two of Kevco Manufacturing, L.P.'s operating divisions (Design Components and 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. 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 has no active bank accounts.