EX-99.5 7 d92044ex99-5.txt MONTHLY OPERATING REPORT-KEVCO COMPONENTS, INC. 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: JUNE 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/ Wilford W. Simpson TREASURER --------------------------------------- ---------------------------------- Original Signature of Responsible Party Title WILFORD W. SIMPSON AUGUST 24, 2001 --------------------------------------- ---------------------------------- Printed Name of Responsible Party Date PREPARER: /s/ Dennis S. Faulkner ACCOUNTANT FOR DEBTOR --------------------------------------- ---------------------------------- Original Signature of Preparer Title DENNIS S. FAULKNER AUGUST 24, 2001 --------------------------------------- ---------------------------------- Printed Name of Preparer Date CASE NAME: KEVCO COMPONENTS, INC. ACCRUAL BASIS - 1 CASE NUMBER: 401-40790-BJH-11 COMPARATIVE BALANCE SHEET
SCHEDULED MONTH MONTH ASSETS AMOUNT MAY-01 JUNE-01 MONTH ------ --------- ------ ------- ----- 1. Unrestricted Cash 134 6,050 5,668 2. Restricted Cash 3. Total Cash 134 6,050 5,668 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 6,050 5,668 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 27,223,818 27,223,436 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 38,219,089 15,018,882 25. Priority Debt 26. Unsecured Debt 27. Other (Attach List) 157,389,954 157,396,888 157,396,888 0 28. Total Pre Petition Liabilities 233,275,018 195,615,977 172,415,770 0 29. Total Liabilities 233,275,018 195,615,977 172,415,770 0 EQUITY 30. Pre Petition Owners' Equity (206,057,116) (206,057,116) 31. Post Petition Cumulative Profit Or(Loss) (1,018) (1,400) 32. Direct Charges To Equity (Attach Explanation) (FOOTNOTE) 37,665,975 60,866,182 33. Total Equity (168,392,159) (145,192,334) 0 34. Total Liabilities and Equity 27,223,818 27,223,436 0
This form x does does not have related footnotes on Footnotes Supplement. --- --- CASE NAME: KEVCO COMPONENTS, INC SUPPLEMENT TO CASE NUMBER: 401-40790-BJH-11 ACCRUAL BASIS - 1 COMPARATIVE BALANCE SHEET
SCHEDULED MONTH MONTH ASSETS AMOUNT MAY-01 JUNE-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 A. Intercompany Payables (FOOTNOTE) 28,889,954 28,896,888 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 27 157,389,954 157,396,888 157,396,888 0
CASE NAME: KEVCO COMPONENTS, INC. ACCRUAL BASIS - 2 CASE NUMBER: 401-40790-BJH-11 INCOME STATEMENT
MONTH MONTH QUARTER REVENUES MAY-01 JUNE-01 MONTH 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 382 382 12. Rent & Lease 0 13. Other (Attach List) 0 0 0 0 14. Total Operating Expenses 0 382 0 382 15. Income Before Non-Operating Income & Expense 0 (382) 0 (382) 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 (382) 0 (382)
This form does x does not have related footnotes on Footnotes Supplement. --- --- CASE NAME: KEVCO COMPONENTS, INC. ACCRUAL BASIS - 3 CASE NUMBER: 401-40790-BJH-11
CASH RECEIPTS AND MONTH MONTH QUARTER DISBURSEMENTS MAY-01 JUNE-01 MONTH 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. --- --- CASE NAME: KEVCO COMPONENTS, INC. SUPPLEMENT TO ACCRUAL BASIS - 3 JUNE, 2001 CASE NUMBER: 401-40790-BJH-11 CASH RECEIPTS AND DISBURSEMENTS
DIST LP MFG MGMT HOLDING COMP KEVCO INC TOTAL ------- --------- ---------- ------- ------ ---------- ----------- 1 CASH-BEGINNING OF MONTH 28 15,478 16,261,944 5,010 6,050 1,000 16,289,510 RECEIPTS FROM OPERATIONS 2 CASH SALES -- -- -- COLLECTION OF ACCOUNTS RECEIVABLE 3 PRE PETITION -- -- -- 4 POST PETITION 155,454 408,048 563,502 5 TOTAL OPERATING RECEIPTS 155,454 408,048 -- -- -- -- 563,502 NON OPERATING RECEIPTS 6 LOANS & ADVANCES -- -- 7 SALE OF ASSETS 300,000 13,335,176 365,203 14,000,379 8 OTHER 49,423 1,171 50,046 -- -- -- 100,640 INTERCOMPANY TRANSFERS 466,052 (275,474) (190,578) -- -- -- SALE EXPENSE REIMBURSEMENT LIFE INSURANCE CASH VALUE RENT TAX REFUND MISC. 49,423 -- INTEREST INCOME 50,046 9 TOTAL NON OPERATING RECEIPTS 815,475 13,060,873 224,671 -- -- -- 14,101,019 10 TOTAL RECEIPTS 970,929 13,468,921 224,671 -- -- -- 14,664,521 11 CASH AVAILABLE 970,957 13,484,399 16,486,615 5,010 6,050 1,000 30,954,031 OPERATING DISBURSEMENTS 12 NET PAYROLL 166,627 66,305 169,505 402,437 13 PAYROLL TAXES PAID -- 167,389 167,389 14 SALES, USE & OTHER TAXES PAID 281 -- 281 15 SECURED/RENTAL/LEASES 215,126 6,622 38,617 260,365 16 UTILITIES 76,221 48,459 3,480 128,160 17 INSURANCE 31,699 -- 166,527 198,226 18 INVENTORY PURCHASES 3,055 28,101 -- 31,156 19 VEHICLE EXPENSE 906 -- -- 906 20 TRAVEL 10,030 8,043 143 18,216 21 ENTERTAINMENT -- -- -- -- 22 REPAIRS & MAINTENANCE 6,736 2,505 2,703 11,944 23 SUPPLIES 1,157 8,190 30,130 39,477 24 ADVERTISING -- 25 OTHER 459,119 13,011,037 10,134,199 379 382 -- 23,605,116 LOAN PAYMENTS 300,000 12,883,776 10,000,000 23,183,776 FREIGHT 15,800 112,046 4,535 132,381 CONTRACT LABOR 1,917 -- 23,505 25,422 401 K PAYMENTS -- 40,675 40,675 PAYROLL TAX ADVANCE ADP -- WAGE GARNISHMENTS 3,746 3,746 MISC. 141,402 15,215 61,738 379 382 219,116 26 TOTAL OPERATING DISBURSEMENTS 970,957 13,179,262 10,712,693 379 382 -- 24,863,673 REORGANIZATION DISBURSEMENTS 27 PROFESSIONAL FEES 301,398 347,517 648,915 28 US TRUSTEE FEES -- 31,250 31,250 29 OTHER -- 30 TOTAL REORGANIZATION EXPENSE -- 301,398 378,767 -- -- -- 680,165 31 TOTAL DISBURSEMENTS 970,957 13,480,660 11,091,460 379 382 -- 25,543,838 32 NET CASH FLOW (28) (11,739) (10,866,789) (379) (382) -- (10,879,317) 33 CASH- END OF MONTH -- 3,739 5,395,155 4,631 5,668 1,000 5,410,193
CASE NAME: KEVCO COMPONENTS, INC. ACCRUAL BASIS - 4 CASE NUMBER: 401-40790-BJH-11
SCHEDULED MONTH MONTH ACCOUNTS RECEIVABLE AGING AMOUNT MAY-01 JUNE-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: JUNE-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: JUNE-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. --- --- 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. MONTH: JUNE-01 ----------------
BANK RECONCILIATIONS Account # 1 Account # 2 -------------------- ----------- ----------- A. BANK: PNC Bank Delaware Other Accounts TOTAL B. ACCOUNT NUMBER: 56-0359-4656 (Attach Sheet) C. PURPOSE (TYPE): DIP Account 1. Balance Per Bank Statement 5,668 5,668 2. Add: Total Deposits Not Credited -- 3. Subtract: Outstanding Checks -- 4. Other Reconciling Items -- 5. Month End Balance Per Books 5,668 -- 5,668 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 5,668
This form does x does not have related footnotes on Footnotes Supplement. --- --- CASE NAME: KEVCO COMPONENTS, INC. ACCRUAL BASIS - 6 CASE NUMBER: 401-40790-BJH-11 MONTH: JUNE-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. Bank of America 23,200,207 15,018,882 2. 3. 4. 5. (Attach List) 6. TOTAL 0 23,200,207 15,018,882
This form does x does not have related footnotes on Footnotes Supplement. --- --- CASE NAME: KEVCO COMPONENTS, INC. ACCRUAL BASIS - 7 CASE NUMBER: 401-40790-BJH-11 MONTH: JUNE-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 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
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 x does does not have related footnotes on Footnotes Supplement. --- --- CASE NAME: KEVCO COMPONENTS, INC. FOOTNOTES SUPPLEMENT CASE NUMBER: 401-40790-BJH-11 ACCRUAL BASIS MONTH: JUNE-01 -------------
ACCRUAL BASIS FORM NUMBER LINE 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 and $10 million during June to Bank of America to reduce pre-petition secured debt. (D) Pursuant to an Asset Purchase Agreement approved by the Court on April 25, 2001 and effective as of April 30, 2001, Alliance Investment and Management Company, Inc. purchased most of the assets (inventory, equipment, machinery and two of seven facilities) of the South Region of Kevco Distribution, LP. Approximately $4 million in sales proceeds were paid directly to Bank of America thereby reducing pre-petition secured debt. (E) Pursuant to an Asset Purchase Agreement approved by the Court on May 21, 2001 and effective June 1, 2001, Drew Industries Incorporated purchased substantially all of the assets used by the Better Bath Division of Kevco Manufacturing, LP. Approximately $8 million of the sales proceeds were paid directly to Bank of America thereby reducing pre-petition secured debt. (F) Pursuant to an Asset Purchase Agreement approved by the Court on May 21, 2001 and effective June 1, 2001, Duo-Form Acquisition Corporation purchased substantially all of the assets used by the Duo-Form Division of Kevco Manufacturing, LP. Approximately $5 million of the sales proceeds were paid directly to Bank of America thereby reducing pre-petition secured debt.
CASE NAME: KEVCO COMPONENTS, INC. FOOTNOTES SUPPLEMENT CASE NUMBER: 401-40790-BJH-11 ACCRUAL BASIS MONTH: JUNE-01 -------------
ACCRUAL BASIS FORM NUMBER LINE NUMBER FOOTNOTE / EXPLANATION ------ ----------- ----------------------- 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 charges to equity are due to the secured debt reductions pursuant to sales of Kevco Manufacturing L.P.'s operating divisions, the sale of the South Region of Kevco Distribution LP, as well as direct cash payments of $25 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. 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.