-----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, J51Epkee/4DqmshjujlKb5CoIKDt5/9qcW/GBdYTOlIAahlXOOgpG/WPc5LjMY4x riD9IkCznphA0HOgC8pRPQ== 0000950134-02-010614.txt : 20020826 0000950134-02-010614.hdr.sgml : 20020826 20020826105221 ACCESSION NUMBER: 0000950134-02-010614 CONFORMED SUBMISSION TYPE: 8-K PUBLIC DOCUMENT COUNT: 9 CONFORMED PERIOD OF REPORT: 20020718 ITEM INFORMATION: Other events ITEM INFORMATION: Financial statements and exhibits FILED AS OF DATE: 20020826 FILER: COMPANY DATA: COMPANY CONFORMED NAME: KEVCO INC CENTRAL INDEX KEY: 0001021706 STANDARD INDUSTRIAL CLASSIFICATION: WHOLESALE-LUMBER, PLYWOOD, MILLWORK & WOOD PANELS [5031] IRS NUMBER: 752666013 STATE OF INCORPORATION: TX FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 8-K SEC ACT: 1934 Act SEC FILE NUMBER: 000-21621 FILM NUMBER: 02747696 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 d99305e8vk.txt FORM 8-K ================================================================================ 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): JULY 18, 2002 KEVCO, INC. (EXACT NAME OF REGISTRANT AS SPECIFIED IN ITS CHARTER) TEXAS 000-21621 75-2666013 (STATE OF INCORPORATION) (COMMISSION FILE NO.) (IRS EMPLOYER IDENTIFICATION NO.)
1310 WEST EL PASO FORT WORTH, TEXAS 76102 (ADDRESS OF PRINCIPAL EXECUTIVE OFFICES) (ZIP CODE) REGISTRANT'S TELEPHONE NUMBER, INCLUDING AREA CODE: (817) 332-5720 ================================================================================ ITEM 5. OTHER EVENTS AND REGULATION FD DISCLOSURE Kevco, Inc. (the "Company") is filing herewith the Monthly Operating Reports of Debtors and Debtors in Possession for the period ended June 30, 2002 that the Company filed with the United States Bankruptcy Court for Northern District of Texas, Fort Worth Division on July 18, 2002 in connection with the Company's and its subsidiaries' ongoing proceedings under Chapter 11 of the United States Bankruptcy Code (11 U.S.C. Sections 101-1330), Case nos. 401-40783-BJH-11 through Case nos. 401-40790-BJH-11. THE MONTHLY OPERATING REPORTS FILED HEREWITH CONTAIN UNAUDITED FINANCIAL STATEMENTS AND OTHER FINANCIAL INFORMATION THAT ARE SUBJECT TO FUTURE RECONCILIATIONS AND ADJUSTMENTS, INCLUDING SIGNIFICANT WRITE-DOWNS OF ASSET VALUES, WHICH THE COMPANY ANTICIPATES WOULD RESULT IN A DEFICIT IN THE COMPANY'S STOCKHOLDERS' EQUITY. ITEM 7. FINANCIAL STATEMENTS AND EXHIBITS (c) Exhibits 99.1 Monthly Operating Report for Kevco, Inc. for the Period Ended June 30, 2002 (1) 99.2 Monthly Operating Report for Kevco Management, Inc. for the Period Ended June 30, 2002 (1) 99.3 Monthly Operating Report for Kevco Holding, Inc. for the Period Ended June 30, 2002 (1) 99.4 Monthly Operating Report for Kevco GP, Inc. for the Period Ended June 30, 2002 (1) 99.5 Monthly Operating Report for Kevco Components, Inc. for the Period Ended June 30, 2002 (1) 99.6 Monthly Operating Report for DCM Delaware, Inc. for the Period Ended June 30, 2002 (1) 99.7 Monthly Operating Report for Kevco Manufacturing, L.P. for the Period Ended June 30, 2002 (1) 99.8 Monthly Operating Report for Kevco Distribution, L.P. for the Period Ended June 30, 2002 (1) - --------------- (1) The Company agrees to furnish supplementally a copy of any omitted schedule or similar attachment to the Commission upon its request. 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: August 26, 2002 By: /s/ Wilford W. Simpson --------------------------- Wilford W. Simpson Executive Vice President and Chief Financial Officer EXHIBIT INDEX
EXHIBIT NO. DESCRIPTION - ----------- ----------- 99.1 Monthly Operating Report for Kevco, Inc. for the Period Ended June 30, 2002 (1) 99.2 Monthly Operating Report for Kevco Management, Inc. for the Period Ended June 30, 2002 (1) 99.3 Monthly Operating Report for Kevco Holding, Inc. for the Period Ended June 30, 2002 (1) 99.4 Monthly Operating Report for Kevco GP, Inc. for the Period Ended June 30, 2002 (1) 99.5 Monthly Operating Report for Kevco Components, Inc. for the Period Ended June 30, 2002 (1) 99.6 Monthly Operating Report for DCM Delaware, Inc. for the Period Ended June 30, 2002 (1) 99.7 Monthly Operating Report for Kevco Manufacturing, L.P. for the Period Ended June 30, 2002 (1) 99.8 Monthly Operating Report for Kevco Distribution, L.P. for the Period Ended June 30, 2002 (1)
- ------------- (1) The Company agrees to furnish supplementally a copy of any omitted schedule or similar attachment to the Commission upon its request. EX-99.1 3 d99305exv99w1.txt MONTHLY OPERATING REPORT FOR KEVCO, INC. EXHIBIT 99.1 CASE NAME: KEVCO, INC. ACCRUAL BASIS CASE NUMBER: 401-40783-BJH-11 JUDGE: BARBARA J. HOUSER UNITED STATES BANKRUPTCY COURT NORTHERN DISTRICT OF TEXAS -------- ----- FORT WORTH DIVISION ---------- MONTHLY OPERATING REPORT MONTH ENDING: JUNE 30, 2002 ------------- 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: EXECUTIVE VICE PRESIDENT AND /s/ WILFORD W. SIMPSON CHIEF FINANCIAL OFFICER - --------------------------------------- ---------------------------- Original Signature of Responsible Party Title WILFORD W. SIMPSON JULY 18, 2002 - --------------------------------------- ---------------------------- Printed Name of Responsible Party Date PREPARER: /s/ DENNIS S. FAULKNER ACCOUNTANT FOR DEBTOR - --------------------------------------- ---------------------------- Original Signature of Preparer Title DENNIS S. FAULKNER JULY 18, 2002 - --------------------------------------- ---------------------------- Printed Name of Preparer Date CASE NAME: KEVCO, INC. ACCRUAL BASIS - 1 CASE NUMBER: 401-40783-BJH-11 COMPARATIVE BALANCE SHEET
SCHEDULED MONTH MONTH MONTH ASSETS AMOUNT APR-02 MAY-02 JUN-02 - ------ ----------- ----------- ----------- ----------- 1. Unrestricted Cash (FOOTNOTE) 1,000 2. Restricted Cash 3. Total Cash 1,000 4. Accounts Receivable (Net) 5. Inventory 6. Notes Receivable 7. Prepaid Expenses 8. Other (Attach List) 459,000 0 0 0 9. Total Current Assets 460,000 10. Property, Plant & Equipment 11. Less: Accumulated Depreciation/Depletion 12. Net Property, Plant & Equipment 13. Due From Insiders 14. Other Assets - Net of Amortization (Attach List) 4,790,071 6,801,458 6,801,458 6,801,458 15. Other (Attach List) 613,299,110 310,687,331 310,687,331 310,687,331 16. Total Assets 618,549,181 317,488,789 317,488,789 317,488,789 POST PETITION LIABILITIES 17. Accounts Payable 18. Taxes Payable 19. Notes Payable 20. Professional Fees 21. Secured Debt 22. Other (Attach List) 82,049,689 83,291,436 84,493,128 23. Total Post Petition Liabilities 82,049,689 83,291,436 84,493,128 PRE PETITION LIABILITIES 24. Secured Debt (FOOTNOTE) 75,885,064 13,768,129 13,858,277 13,945,516 25. Priority Debt 26. Unsecured Debt 27. Other (Attach List) 136,505,780 141,833,049 141,833,049 141,833,049 28. Total Pre Petition Liabilities 212,390,844 155,601,178 155,691,326 155,778,565 29. Total Liabilities 212,390,844 237,650,867 238,982,762 240,271,693 EQUITY 30. Pre Petition Owners' Equity 406,158,337 406,158,337 406,158,337 31. Post Petition Cumulative Profit Or (Loss) (14,188,752) (15,520,647) (16,809,578) 32. Direct Charges To Equity (Attach Explanation) (FOOTNOTE) (312,131,663) (312,131,663) (312,131,663) 33. Total Equity 79,837,922 78,506,027 77,217,096 34. Total Liabilities and Equity 317,488,789 317,488,789 317,488,789
This form x does does not have related footnotes on Footnotes Supplement. --- --- CASE NAME: KEVCO, INC. SUPPLEMENT TO CASE NUMBER: 401-40783-BJH-11 ACCRUAL BASIS - 1 COMPARATIVE BALANCE SHEET
SCHEDULED MONTH MONTH MONTH ASSETS AMOUNT APR-02 MAY-02 JUN-02 - ------ ----------- ----------- ----------- ----------- A. Prepaid Escrowed Retention Pmts. 459,000 B. C. D. E. TOTAL OTHER ASSETS - LINE 8 459,000 A. Capitalized loan costs 4,790,071 4,297,973 4,297,973 4,297,973 B. Investment in Subsidiaries 2,503,485 2,503,485 2,503,485 C. D. E. TOTAL OTHER ASSETS NET OF AMORTIZATION - LINE 14 4,790,071 6,801,458 6,801,458 6,801,458 A. Intercompany Receivables (FOOTNOTE) 306,649,555 B. Interco. Promissory Note (FOOTNOTE) 235,981,314 235,981,314 235,981,314 235,981,314 C. Interco. Royalties (FOOTNOTE) 70,668,241 74,706,017 74,706,017 74,706,017 D. E. TOTAL OTHER ASSETS - LINE 15 613,299,110 310,687,331 310,687,331 310,687,331 POST PETITION LIABILITIES A. Interco. Payables (FOOTNOTE) 62,979,907 62,979,907 62,979,907 B. Accrued Interest on Notes/Bonds 19,069,782 20,311,529 21,513,221 C. D. E. TOTAL OTHER POST PETITION LIABILITIES - LINE 22 82,049,689 83,291,436 84,493,128 PRE PETITION LIABILITIES A. Interco. Liabilities (FOOTNOTE) 8,005,780 8,005,780 8,005,780 8,005,780 B. 10 3/8% Sr. Sub. Notes 105,000,000 105,000,000 105,000,000 105,000,000 C. Senior Sub. Exchangeable Notes 23,500,000 23,500,000 23,500,000 23,500,000 D. Accrued Interest on Notes/Bonds 5,327,269 5,327,269 5,327,269 E. TOTAL OTHER PRE PETITION LIABILITIES - LINE 27 136,505,780 141,833,049 141,833,049 141,833,049
CASE NAME: KEVCO, INC. ACCRUAL BASIS - 2 CASE NUMBER: 401-40783-BJH-11 INCOME STATEMENT
MONTH MONTH MONTH QUARTER REVENUES APR-02 MAY-02 JUN-02 TOTAL - -------- ---------- ---------- ---------- ---------- 1. Gross Revenues 2. Less: Returns & Discounts 3. Net Revenue COST OF GOODS SOLD 4. Material 5. Direct Labor 6. Direct Overhead 7. Total Cost Of Goods Sold 8. Gross Profit OPERATING EXPENSES 9. Officer / Insider Compensation 10. Selling & Marketing 11. General & Administrative 12. Rent & Lease 13. Other (Attach List) 14. Total Operating Expenses 15. Income Before Non-Operating Income & Expense OTHER INCOME & EXPENSES 16. Non-Operating Income (Att List) 17. Non-Operating Expense (Att List) 18. Interest Expense 1,288,931 1,331,895 1,288,931 3,909,757 19. Depreciation / Depletion 20. Amortization 21. Other (Attach List) 22. Net Other Income & Expenses (1,288,931) (1,331,895) (1,288,931) (3,909,757) REORGANIZATION EXPENSES 23. Professional Fees 24. U.S. Trustee Fees 25. Other (Attach List) 26. Total Reorganization Expenses 27. Income Tax 28. Net Profit (Loss) (1,288,931) (1,331,895) (1,288,931) (3,909,757)
This form does x does not have related footnotes on Footnotes Supplement. --- --- CASE NAME: KEVCO, INC. ACCRUAL BASIS - 3 CASE NUMBER: 401-40783-BJH-11
CASH RECEIPTS AND MONTH MONTH MONTH QUARTER DISBURSEMENTS APR-02 MAY-02 JUN-02 TOTAL - ----------------- ------ ------ ------ ------- 1. Cash - Beginning Of Month SEE ATTACHED SUPPLEMENT AND FOOTNOTE RECEIPTS FROM OPERATIONS 2. Cash Sales COLLECTION OF ACCOUNTS RECEIVABLE 3. Pre Petition 4. Post Petition 5. Total Operating Receipts NON-OPERATING RECEIPTS 6. Loans & Advances (Attach List) 7. Sale of Assets 8. Other (Attach List) 9. Total Non-Operating Receipts 10. Total Receipts 11. Total Cash Available OPERATING DISBURSEMENTS 12. Net Payroll 13. Payroll Taxes Paid 14. Sales, Use & Other Taxes Paid 15. Secured / Rental / Leases 16. Utilities 17. Insurance 18. Inventory Purchases 19. Vehicle Expenses 20. Travel 21. Entertainment 22. Repairs & Maintenance 23. Supplies 24. Advertising 25. Other (Attach List) 26. Total Operating Disbursements REORGANIZATION DISBURSEMENTS 27. Professional Fees 28. U.S. Trustee Fees 29. Other (Attach List) 30. Total Reorganization Expenses 31. Total Disbursements 32. Net Cash Flow 33. Cash - End of Month
This form x does does not have related footnotes on Footnotes Supplement. --- --- CASE NAME: KEVCO, INC., ET AL SUPPLEMENT TO ACCRUAL BASIS - 3 JUNE, 2002 CASE NUMBER: 401-40783-BJH-11 CASH RECEIPTS AND DISBURSEMENTS
DIST LP MFG MGMT HOLDING COMP KEVCO INC TOTAL ------- --- --------- ------- ---- --------- --------- 1. CASH-BEGINNING OF MONTH -- -- 4,866,245 -- -- -- 4,866,245 RECEIPTS FROM OPERATIONS 2. CASH SALES -- -- -- COLLECTION OF ACCOUNTS RECEIVABLE 3. PRE PETITION -- -- -- 4. POST PETITION -- -- 5. TOTAL OPERATING RECEIPTS -- -- -- -- -- -- -- NON OPERATING RECEIPTS 6. LOANS & ADVANCES -- -- 7. SALE OF ASSETS -- 8. OTHER 88,235 -- 1,085,606 -- -- -- 1,173,841 INTERCOMPANY TRANSFERS (87,675) 87,675 -- -- SALE EXPENSE REIMBURSEMENT INCOME TAX REFUND 1,955 REBATE 88,235 WORKERS COMP REFUND 1,077,239 MISC. 210 -- INTEREST INCOME -- 6,202 9. TOTAL NON OPERATING RECEIPTS 560 -- 1,173,281 -- -- -- 1,173,841 10. TOTAL RECEIPTS 560 -- 1,173,281 -- -- -- 1,173,841 11. CASH AVAILABLE 560 -- 6,039,526 -- -- -- 6,040,086 OPERATING DISBURSEMENTS 12. NET PAYROLL 12,771 12,771 13. PAYROLL TAXES PAID -- 4,788 4,788 14. SALES, USE & OTHER TAXES PAID -- -- 15. SECURED/RENTAL/LEASES -- 4,820 4,820 16. UTILITIES -- 324 324 17. INSURANCE -- 844 844 18. INVENTORY PURCHASES -- -- 19. VEHICLE EXPENSE -- -- 20. TRAVEL -- -- 21. ENTERTAINMENT -- -- 22. REPAIRS & MAINTENANCE 560 -- 560 23. SUPPLIES -- -- 24. ADVERTISING -- 25. OTHER -- -- 463 -- -- -- 463 LOAN PAYMENTS -- -- FREIGHT -- -- CONTRACT LABOR -- -- 401 K PAYMENTS -- -- PAYROLL TAX ADVANCE ADP -- WAGE GARNISHMENTS -- MISC. -- 463 463 26. TOTAL OPERATING DISBURSEMENTS 560 -- 24,010 -- -- -- 24,570 REORGANIZATION DISBURSEMENTS 27. PROFESSIONAL FEES 926,143 926,143 28. US TRUSTEE FEES -- -- 29. OTHER 41,804 41,804 30. TOTAL REORGANIZATION EXPENSE -- -- 967,947 -- -- -- 967,947 31. TOTAL DISBURSEMENTS 560 -- 991,957 -- -- -- 992,517 32. NET CASH FLOW -- -- 181,324 -- -- -- 181,324 33. CASH- END OF MONTH -- -- 5,047,569 -- -- -- 5,047,569
CASE NAME: KEVCO, INC. ACCRUAL BASIS - 4 CASE NUMBER: 401-40783-BJH-11
SCHEDULED MONTH MONTH MONTH ACCOUNTS RECEIVABLE AGING AMOUNT APR-02 MAY-02 JUN-02 - ------------------------- --------- ------ ------ ------ 1. 0 - 30 2. 31 - 60 3. 61 - 90 4. 91 + 5. Total Accounts Receivable 6. (Amount Considered Uncollectible) 7. Accounts Receivable (Net) 0
AGING OF POST PETITION MONTH: June-02 TAXES AND PAYABLES ---------
0 - 30 31 - 60 61 - 90 91 + TAXES PAYABLE DAYS DAYS DAYS DAYS TOTAL - ------------- ------ ------- ------- ---- ----- 1. Federal 2. State 3. Local 4. Other (Attach List) 5. Total Taxes Payable 0 6. Accounts Payable 0
MONTH: June-02 STATUS OF POST PETITION TAXES ----------
BEGINNING TAX AMOUNT WITHHELD ENDING TAX FEDERAL LIABILITY* AND/OR ACCRUED (AMOUNT PAID) LIABILITY - ------- ------------- --------------- ------------- ----------- 1. Withholding ** 2. FICA - Employee ** 3. FICA - Employer ** 4. Unemployment 5. Income 6. Other (Attach List) 7. Total Federal Taxes 0 STATE AND LOCAL 8. Withholding 9. Sales 10. Excise 11. Unemployment 12. Real Property 13. Personal Property 14. Other (Attach List) 15. Total State And Local 0 16. Total Taxes 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, INC. ACCRUAL BASIS - 5 CASE NUMBER: 401-40783-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-02 -----------
BANK RECONCILIATIONS Account # 1 Account # 2 - -------------------- ----------- ----------- A. BANK: Bank of America Other Accounts TOTAL B. ACCOUNT NUMBER: 3750768521 (Attach List) C. PURPOSE (TYPE): DIP Account 1. Balance Per Bank Statement 2. Add: Total Deposits Not Credited 3. Subtract: Outstanding Checks 4. Other Reconciling Items 5. Month End Balance Per Books 6. Number of Last Check Written N/A
INVESTMENT ACCOUNTS
DATE TYPE OF BANK, ACCOUNT NAME & NUMBER OF PURCHASE INSTRUMENT PURCHASE PRICE CURRENT VALUE - --------------------------- ----------- ---------- -------------- ------------- 7. 8. 9. 10. (Attach List) 11. Total Investments 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. --- --- CASE NAME: KEVCO, INC. ACCRUAL BASIS - 6 CASE NUMBER: 401-40783-BJH-11 MONTH: June-02 --------------- 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
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
* Include all fees incurred, both approved and unapproved POST PETITION STATUS OF SECURED NOTES, LEASES PAYABLE AND ADEQUATE PROTECTION PAYMENTS
AMOUNTS TOTAL SCHEDULED PAID UNPAID MONTHLY DURING POST NAME OF CREDITOR PAYMENTS DUE MONTH PETITION ---------------- ------------ ------- ---------- 1. Bank of America 13,945,516 2. 3. 4. 5. (Attach List) 6. TOTAL 13,945,516
This form does x does not have related footnotes on Footnotes Supplement. --- --- CASE NAME: KEVCO, INC. ACCRUAL BASIS - 7 CASE NUMBER: 401-40783-BJH-11 MONTH: June-02 ------------- 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 - -------------- ------- -------------- -------------------------- General Liability Aon Risk Services 3/1/02-9/1/02 Semi-Annual $98,598 D&O Liability Great American Insurance 11/1/2001-10/31/2004 Annual $64,657
This form x does does not have related footnotes on Footnotes Supplement. --- --- CASE NAME: KEVCO, INC. FOOTNOTES SUPPLEMENT CASE NUMBER: 401-40783-BJH-11 ACCRUAL BASIS MONTH: June-02 ------------
ACCRUAL BASIS FORM NUMBER LINE NUMBER FOOTNOTE / EXPLANATION - ------ ----------- ---------------------- 1 1 Pursuant to the February 12, 2001 Order (1) Authorizing Continued Use of Existing Forms and Records; (2) 3 1 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. 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 15A,B,C Intercompany assets were inadvertently doubled on Debtor's Schedules. The adjustment to equity corrects 1 32 the error. 1 15B,C Intercompany receivables/payables are from/to co-debtors Kevco Management Co. (Case No. 1 22A 401-40788-BJH), Kevco Distribution, LP (Case No. 401-40789-BJH)' 1 27A Kevco Holding, Inc. (Case No. 401-40785-BJH), DCM Delaware, Inc. 7 3 (Case No. 401-40787-BJH), Kevco GP, Inc. (Case No. 401-40786-BJH), Kevco Components, Inc. (Case No. 401-40790-BJH), and Kevco Manufacturing, LP. (Case No. 401-40784-BJH). 1 24 Secured debt reductions are from the sales of Kevco Manufacturing, LP's operating divisions, the asset sale of the South Region of Kevco Distribution, real property sales and direct cash payments.
EX-99.2 4 d99305exv99w2.txt MONTHLY OPERATING REPORT FOR KEVCO MANAGEMENT, INC 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: JUNE 30, 2002 ------------- 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 JULY 18, 2002 - --------------------------------------- --------------------- Printed Name of Responsible Party Date PREPARER: /s/ DENNIS S. FAULKNER ACCOUNTANT FOR DEBTOR - --------------------------------------- --------------------- Original Signature of Preparer Title DENNIS S. FAULKNER JULY 18, 2002 - --------------------------------------- --------------------- Printed Name of Preparer Date CASE NAME: KEVCO MANAGEMENT, INC. ACCRUAL BASIS - 1 CASE NUMBER: 401-40788-BJH-11 COMPARATIVE BALANCE SHEET
SCHEDULED MONTH MONTH MONTH ASSETS AMOUNT APR-02 MAY-02 JUN-02 - ------ ------------ ------------ ------------ ------------ 1. Unrestricted Cash (FOOTNOTE) 6,557,974 2,814,595 2,848,474 3,027,493 2. Restricted Cash (FOOTNOTE) 2,017,771 2,020,076 3. Total Cash 6,557,974 2,814,595 4,866,245 5,047,569 4. Accounts Receivable (Net) (FOOTNOTE) 300,000 300,000 300,000 5. Inventory 6. Notes Receivable 7. Prepaid Expenses (FOOTNOTE) 3,450,681 306,786 252,207 238,142 8. Other (Attach List) 263,606 0 0 0 9. Total Current Assets 10,272,261 3,421,381 5,418,452 5,585,711 10. Property, Plant & Equipment 3,285,885 0 0 0 11. Less: Accumulated Depreciation/Depletion (1,753,163) 0 0 0 12. Net Property, Plant & Equipment 1,532,722 0 0 0 13. Due From Insiders 14. Other Assets - Net of Amortization (Attach List) 36,082 0 0 0 15. Other (Attach List) (FOOTNOTE) 153,399,371 39,971,438 39,971,438 39,971,438 16. Total Assets 165,240,436 43,392,819 45,389,890 45,557,149 POST PETITION LIABILITIES 17. Accounts Payable 18. Taxes Payable (FOOTNOTE) 5,221 5,221 5,221 19. Notes Payable 20. Professional Fees 21. Secured Debt 22. Other (Attach List) (FOOTNOTE) 1,741,659 1,741,659 1,680,378 23. Total Post Petition Liabilities 1,746,880 1,746,880 1,685,599 PRE PETITION LIABILITIES 24. Secured Debt (FOOTNOTE) 75,885,064 13,768,129 13,858,277 13,945,516 25. Priority Debt (FOOTNOTE) 200,832 0 0 0 26. Unsecured Debt 1,779,701 1,377,554 1,377,554 1,377,554 27. Other (Attach List) 242,243,558 169,690,483 171,707,344 171,795,019 28. Total Pre Petition Liabilities 320,109,155 184,836,166 186,943,175 187,118,089 29. Total Liabilities 320,109,155 186,583,046 188,690,055 188,803,688 EQUITY 30. Pre Petition Owners' Equity (154,868,719) (154,868,719) (154,868,719) 31. Post Petition Cumulative Profit Or (Loss) (6,299,498) (6,319,289) (6,178,424) 32. Direct Charges To Equity (Attach Explanation FOOTNOTE) 17,977,990 17,887,843 17,800,604 33. Total Equity (143,190,227) (143,300,165) (143,246,539) 34. Total Liabilities and Equity 43,392,819 45,389,890 45,557,149
This form x does does not have related footnotes on Footnotes Supplement. --- --- 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 APR-02 MAY-02 JUN-02 - ------ ------------ ----------- ----------- ----------- A. Security Deposit 8,794 0 0 0 B. Cash Surrender Value: Life Ins. 254,812 0 0 0 C. D. E. TOTAL OTHER ASSETS - LINE 8 263,606 0 0 0 A. Organizational Costs 36,082 0 0 0 B. C. D. E. TOTAL OTHER ASSETS NET OF AMORTIZATION - LINE 14 36,082 0 0 0 A. Intercompany Receivables 113,743,558 0 0 0 B. Intercompany Royalties 39,655,813 39,971,438 39,971,438 39,971,438 C. D. E. TOTAL OTHER ASSETS - LINE 15 153,399,371 39,971,438 39,971,438 39,971,438 POST PETITION LIABILITIES A. Accrued Liabilities Other 409,909 409,909 348,628 B. Deferred Compensation 960,371 960,371 960,371 C. Accrued Health Claims 371,379 371,379 371,379 D. E. F. G. TOTAL OTHER POST PETITION LIABILITIES - LINE 22 1,741,659 1,741,659 1,680,378 PRE PETITION LIABILITIES A. Intercompany Payables (FOOTNOTE) 113,743,558 41,190,483 43,207,344 43,295,019 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 27 242,243,558 169,690,483 171,707,344 171,795,019
CASE NAME: KEVCO MANAGEMENT, INC. ACCRUAL BASIS - 2 CASE NUMBER: 401-40788-BJH-11
INCOME STATEMENT MONTH MONTH MONTH QUARTER REVENUES APR-02 MAY-02 JUN-02 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 11,698 12,336 12,771 36,805 10. Selling & Marketing 0 11. General & Administrative 2,414 1,975 463 4,852 12. Rent & Lease 4,820 4,820 4,820 14,460 13. Other (Attach List) 8,227 6,844 5,956 21,027 14. Total Operating Expenses 27,159 25,975 24,010 77,144 15. Income Before Non-Operating Income & Expense (27,159) (25,975) (24,010) (77,144) OTHER INCOME & EXPENSES 16. Non-Operating Income (Att List) 15,742 6,184 1,146,887 1,168,813 17. Non-Operating Expense (Att List) 0 0 0 0 18. Interest Expense 0 19. Depreciation / Depletion 0 20. Amortization 0 21. Other (Attach List) 0 22. Net Other Income & Expenses 15,742 6,184 1,146,887 1,168,813 REORGANIZATION EXPENSES 23. Professional Fees 144,752 0 940,208 1,084,960 24. U.S. Trustee Fees 6,000 0 0 6,000 25. Other (Attach List) 41,804 41,804 26. Total Reorganization Expenses 150,752 0 982,012 1,132,764 27. Income Tax 0 28. Net Profit (Loss) (162,169) (19,791) 140,865 (41,095)
This form does X does not have related footnotes on Footnotes Supplement. --- --- CASE NAME: KEVCO MANAGEMENT, INC. SUPPLEMENT TO CASE NUMBER: 401-40788-BJH-11 ACCRUAL BASIS - 2 INCOME STATEMENT
MONTH MONTH MONTH QUARTER OPERATING EXPENSES APR-02 MAY-02 JUN-02 TOTAL - ------------------ ------ ------ --------- --------- A. Utilities & Telephone 170 342 324 836 B. Payroll Taxes 6,934 5,658 4,788 17,380 C. Contract Labor 225 0 0 225 D. Insurance 898 844 844 2,586 E. 0 TOTAL OTHER OPERATING EXPENSES - LINE 13 8,227 6,844 5,956 21,027 OTHER INCOME & EXPENSES A. Bad Debt Collection 15,742 15,742 B. Interest Income 4,754 6,202 10,956 C. Miscellaneous Income 1,430 2,165 3,595 D. Workers Compensation Refund 1,138,520 1,138,520 E. 0 TOTAL NON-OPERATING INCOME - LINE 16 15,742 6,184 1,146,887 1,168,813 A. 0 B. 0 C. 0 D. 0 E. 0 TOTAL NON-OPERATING EXPENSE - LINE 17 0 0 0 0 REORGANIZATION EXPENSES A. Ikon (printing/mailing costs pursuant to creditor settlement) 41,804 41,804 B. 0 C. 0 D. 0 E. 0 TOTAL OTHER REORGANIZATION EXPENSES - LINE 25 0 0 41,804 41,804
CASE NAME: KEVCO MANAGEMENT, INC. ACCRUAL BASIS - 3 CASE NUMBER: 401-40788-BJH-11
CASH RECEIPTS AND MONTH MONTH MONTH QUARTER DISBURSEMENTS APR-02 MAY-02 JUN-02 TOTAL - ------------- ------ ------ ------ ----- 1. Cash - Beginning Of Month SEE ATTACHED SUPPLEMENT AND FOOTNOTE RECEIPTS FROM OPERATIONS 2. Cash Sales COLLECTION OF ACCOUNTS RECEIVABLE 3. Pre Petition 4. Post Petition 5. Total Operating Receipts NON-OPERATING RECEIPTS 6. Loans & Advances (Attach List) 7. Sale of Assets 8. Other (Attach List) 9. Total Non-Operating Receipts 10. Total Receipts 11. Total Cash Available OPERATING DISBURSEMENTS 12. Net Payroll 13. Payroll Taxes Paid 14. Sales, Use & Other Taxes Paid 15. Secured / Rental / Leases 16. Utilities 17. Insurance 18. Inventory Purchases 19. Vehicle Expenses 20. Travel 21. Entertainment 22. Repairs & Maintenance 23. Supplies 24. Advertising 25. Other (Attach List) 26. Total Operating Disbursements REORGANIZATION DISBURSEMENTS 27. Professional Fees 28. U.S. Trustee Fees 29. Other (Attach List) 30. Total Reorganization Expenses 31. Total Disbursements 32. Net Cash Flow 33. Cash - End of Month
This form x does does not have related footnotes on Footnotes Supplement. --- --- CASE NAME: KEVCO MANAGEMENT, INC. SUPPLEMENT TO ACCRUAL BASIS -3 JUNE, 2002 CASE NUMBER: 401-40788-BJH-11 CASH RECEIPTS AND DISBURSEMENTS
DIST LP MFG MGMT HOLDING COMP KEVCO INC TOTAL ------- --- --------- ------- ---- --------- --------- 1. CASH-BEGINNING OF MONTH -- -- 4,866,245 -- -- -- 4,866,245 RECEIPTS FROM OPERATIONS 2. CASH SALES -- -- -- COLLECTION OF ACCOUNTS RECEIVABLE 3. PRE PETITION -- -- -- 4. POST PETITION -- -- 5. TOTAL OPERATING RECEIPTS -- -- -- -- -- -- -- NON OPERATING RECEIPTS 6. LOANS & ADVANCES -- -- 7. SALE OF ASSETS -- 8. OTHER 88,235 -- 1,085,606 -- -- -- 1,173,841 INTERCOMPANY TRANSFERS (87,675) 87,675 -- -- SALE EXPENSE REI URSEMENT INCOME TAX REFUND 1,955 REBATE 88,235 WORKERS COMP REFUND 1,077,239 MISC. 210 -- INTEREST INCOME -- 6,202 9. TOTAL NON OPERATING RECEIPTS 560 -- 1,173,281 -- -- -- 1,173,841 10. TOTAL RECEIPTS 560 -- 1,173,281 -- -- -- 1,173,841 11. CASH AVAILABLE 560 -- 6,039,526 -- -- -- 6,040,086 OPERATING DISBURSEMENTS 12. NET PAYROLL 12,771 12,771 13. PAYROLL TAXES PAID -- 4,788 4,788 14. SALES, USE & OTHER TAXES PAID -- -- 15. SECURED/RENTAL/LEASES -- 4,820 4,820 16. UTILITIES -- 324 324 17. INSURANCE -- 844 844 18. INVENTORY PURCHASES -- -- 19. VEHICLE EXPENSE -- -- 20. TRAVEL -- -- 21. ENTERTAINMENT -- -- 22. REPAIRS & MAINTENANCE 560 -- 560 23. SUPPLIES -- -- 24. ADVERTISING -- 25. OTHER -- -- 463 -- -- -- 463 LOAN PAYMENTS -- -- -- FREIGHT -- -- CONTRACT LABOR -- -- 401 K PAYMENTS -- -- PAYROLL TAX ADVANCE ADP -- WAGE GARNISHMENTS -- MISC. -- 463 463 26. TOTAL OPERATING DISBURSEMENTS 560 -- 24,010 -- -- -- 24,570 REORGANIZATION DISBURSEMENTS 27. PROFESSIONAL FEES 926,143 926,143 28. US TRUSTEE FEES -- -- 29. OTHER 41,804 41,804 30. TOTAL REORGANIZATION EXPENSE -- -- 967,947 -- -- -- 967,947 31. TOTAL DISBURSEMENTS 560 -- 991,957 -- -- -- 992,517 32. NET CASH FLOW -- -- 181,324 -- -- -- 181,324 33. CASH- END OF MONTH -- -- 5,047,569 -- -- -- 5,047,569
CASE NAME: KEVCO MANAGEMENT, INC. ACCRUAL BASIS - 4 CASE NUMBER: 401-40788-BJH-11
SCHEDULED MONTH MONTH MONTH ACCOUNTS RECEIVABLE AGING AMOUNT APR-02 MAY-02 JUN-02 - ------------------------- --------- ------- ------- ------ 1. 0 - 30 2. 31 - 60 3. 61 - 90 4. 91 + 300,000 300,000 0 5. Total Accounts Receivable 0 300,000 300,000 0 6. (Amount Considered Uncollectible) 7. Accounts Receivable (Net) (FOOTNOTE) 0 300,000 300,000 0
AGING OF POST PETITION MONTH: June-02 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) 5,221 5,221 5. Total Taxes Payable 5,221 0 0 0 5,221 6. Accounts Payable 0
STATUS OF POST PETITION TAXES MONTH: June-02 -------
BEGINNING TAX AMOUNT WITHHELD ENDING TAX FEDERAL LIABILITY* AND/OR ACCRUED (AMOUNT PAID) LIABILITY - ------- ------------- --------------- ------------- --------- 1. Withholding ** 4,286 (4,286) 0 2. FICA - Employee ** 251 (251) 0 3. FICA - Employer ** 251 (251) 0 4. Unemployment 0 0 0 5. Income 0 6. Other (Attach List) 7. Total Federal Taxes 0 4,788 (4,788) 0 STATE AND LOCAL 8. Withholding 0 0 9. Sales 0 10. Excise 0 11. Unemployment 0 0 12. Real Property (FOOTNOTE) 5,221 5,221 13. Personal Property 0 14. Other (Attach List) 0 15. Total State And Local 5,221 0 0 5,221 16. Total Taxes 5,221 4,788 (4,788) 5,221
* 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. --- --- 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: June-02 -------
BANK RECONCILIATIONS Account # 1 Account # 2 - -------------------- ----------- ----------- A. BANK: Bank of America Bank of America Other Accounts TOTAL B. ACCOUNT NUMBER: 1295026976 3751629012 (Attach List) C. PURPOSE (TYPE): Operating Account DIP Disbursement Account 1. Balance Per Bank Statement 1,492,164 138,938 3,539,629 5,170,731 2. Add: Total Deposits Not Credited 0 0 3. Subtract: Outstanding Checks -1,010 (115,767) (6,385) (122,152) 4. Other Reconciling Items 0 0 5. Month End Balance Per Books 1,491,154 23,171 3,533,244 5,047,569 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 0 13. Total Cash - End of Month 5,047,569
This form does x does not have related footnotes on Footnotes Supplement. --- --- CASE NAME: KEVCO MANAGEMENT, INC. SUPPLEMENT TO CASE NUMBER: 401-40788-BJH-11 ACCRUAL BASIS - 5 MONTH: June-02 -------
BANK RECONCILIATIONS Account # 3 Account # 4 Account # 5 - -------------------- ----------- ----------- ----------- A. BANK: Bank of America/ Bank of America Bank of America TOTAL Nations Funds B. ACCOUNT NUMBER: 846713 3751775241 3750801912 OTHER BANK C. PURPOSE (TYPE): Kevco, Inc. S-T Stay Pay Payroll-Mgmt ACCOUNTS Investment 1. Balance Per Bank Statement 1,421,002 88,200 10,351 1,519,553 2. Add: Total Deposits Not Credited 0 3. Subtract: Outstanding Checks (6,385) (6,385) 4. Other Reconciling Items 0 5. Month End Balance Per Books 1,421,002 88,200 3,966 1,513,168 6. Number of Last Check Written N/A N/A N/A
INVESTMENT ACCOUNTS
TYPE OF BANK, ACCOUNT NAME & NUMBER DATE OF PURCHASE INSTRUMENT PURCHASE PRICE CURRENT VALUE - --------------------------- ---------------- ---------- -------------- ------------- A. B. C. D. TOTAL OTHER INVESTMENT ACCOUNTS - LINE 10 0 0
CASE NAME: KEVCO MANAGEMENT, INC. 2ND SUPPLEMENT TO CASE NUMBER: 401-40788-BJH-11 ACCRUAL BASIS - 5 MONTH: June-02 -------
BANK RECONCILIATIONS Account # 6 - -------------------- ----------- A. BANK: Bank of America TOTAL B. ACCOUNT NUMBER: 3751930222 OTHER BANK C. PURPOSE (TYPE): RESTRICTED FUNDS ACCOUNTS 1. Balance Per Bank Statement 2,020,076 2,020,076 2. Add: Total Deposits Not Credited 0 3. Subtract: Outstanding Checks 0 4. Other Reconciling Items 0 5. Month End Balance Per Books 2,020,076 2,020,076 6. Number of Last Check Written N/A
INVESTMENT ACCOUNTS
TYPE OF BANK, ACCOUNT NAME & NUMBER DATE OF PURCHASE INSTRUMENT PURCHASE PRICE CURRENT VALUE - --------------------------- ---------------- ---------- -------------- ------------- A. B. C. D. TOTAL OTHER INVESTMENT ACCOUNTS - LINE 10 0 0
CASE NAME: KEVCO MANAGEMENT, INC. ACCRUAL BASIS - 6 CASE NUMBER: 401-40788-BJH-11 MONTH: June-02 ------- 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. 1,949 2. Joe Tomczak Expense Reimb. 626 3. John Wittig Expense Reimb. 263 4. Sharon Romere Payroll 126,246 5. Joe Tomczak Payroll 177,884 6. John Wittig Payroll 144,039 7. Wil Simpson Payroll 12,336 246,297 Other (see attached) 0 132,293 8. Total Payments To Insiders 12,336 829,597
PROFESSIONALS
DATE OF COURT ORDER TOTAL AUTHORIZING AMOUNT AMOUNT TOTAL PAID INCURRED & NAME PAYMENT APPROVED PAID TO DATE UNPAID* ---- ----------- -------- ------- ---------- ---------- 1. Haynes and Boone 3/20/2001 1,316,514 44,450 1,316,514 2. Lain, Faulkner & Co., P.C. 3/20/2001 327,594 14,065 327,594 3. Baker & McKenzie 3/20/2001 480,314 192,163 480,314 4. Gordion Group 3/20/2001 17,438 17,438 5. (Attach List) 202,069 689,530 828,636 6. Total Payments To Professionals 2,343,929 940,208 2,970,496 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 N/A 13,945,516 2. Leases Payable none 3. 4. 5. (Attach List) 6. TOTAL 0 0 13,945,516
This form does x does not have related footnotes on Footnotes Supplement. --- --- CASE NAME: KEVCO MANAGEMENT, INC. SUPPLEMENT TO CASE NUMBER: 401-40788-BJH-11 ACCRUAL BASIS - 6 PAYMENTS TO INSIDERS AND PROFESSIONALS MONTH: June-02 ------- INSIDERS
TYPE OF AMOUNT TOTAL PAID NAME PAYMENT PAID TO DATE ---- --------------- ------ ---------- A. Bill Estes Director's Fees 13,000 B. Peter McKee Director's Fees 12,000 C. Richard Nevins Director's Fees 13,000 D. Wingate Partners Management Fee 89,390 E. Wingate Partners Expense Reimb. 3,984 F. Wil Simpson Expense Reimb. 919 G. H. TOTAL OTHER PAYMENTS TO INSIDERS - LINE 5 132,293
PROFESSIONALS
DATE OF COURT ORDER TOTAL AUTHORIZING AMOUNT AMOUNT TOTAL PAID INCURRED NAME PAYMENT APPROVED PAID TO DATE & UNPAID* ---- ----------- -------- ------ ---------- --------- A. Ernst & Young 3/20/2001 65,764 11,951 77,715 B. Mark MacDonald & Assoc. 3/20/2001 49,382 573,763 623,145 C. David T. Roberts 3/20/2001 23,960 40,853 64,813 D. Barnes & Thornburg 3/20/2001 62,963 62,963 62,963 E. F. G. H. TOTAL OTHER PAYMENTS TO PROFESSIONALS - LINE 5 202,069 689,530 828,636
* 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 - ---------------- --------- ------- ---------- A. B. C. D. E. STATUS OF OTHER CREDITORS - LINE 5
CASE NAME: KEVCO MANAGEMENT, INC. ACCRUAL BASIS - 7 CASE NUMBER: 401-40788-BJH-11 MONTH: June-02 ------- 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, General Liability, Auto Aon Risk Services 3/1/02 - 9/1/02 Semi-Annual $98,598 D&O Liability Great American Insurance 11/1/2001-10/31/2004 Annual $64,657
This form x does does not have related footnotes on Footnotes Supplement. --- --- CASE NAME: KEVCO MANAGEMENT, INC. FOOTNOTES SUPPLEMENT CASE NUMBER: 401-40788-BJH-11 ACCRUAL BASIS MONTH: June-02 -------------------------------
ACCRUAL BASIS FORM NUMBER LINE NUMBER FOOTNOTE / EXPLANATION - ------ ----------- ---------------------- 1 1 Pursuant to the February 12, 2001 Order (1) Authorizing Continued Use of Existing 3 1 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. 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 2 During May 2002, Kevco Manufacturing, LP and Kevco Distribution, LP sold real property located in Indiana and Georgia. Financial details of the transactions are in the affiliated Debtor Monthly Operating Reports. 1 4 In September 2001, Liberty Mutual, Debtor's Workman's Compensation carrier, drew $300,000 on a letter of credit issued during 2000. Although Debtor has received a refund of $1,077,239 pursuant to a final audit, Liberty Mutual has continued to hold the funds from the letter of credit. 1 7 Prepaid Expenses consist primarily of professional fee retainers. 1 15 Intercompany receivables/payables are from/to co-debtors Kevco Manufacturing, LP (Case 1 27A No. 401-40784-BJH-11), Kevco Distribution, LP (Case No. 401-40789-BJH-11), Kevco 7 3 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). Changes in intercompany have not been reflected as post-petition assets and liabilities. 1 18 Property tax liabilities represent accruals of tax and are not yet due. 4 12 1 22 The Debtor records on its books accruals for certain liabilities 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." 1 24 Adjustments to equity are due to secured debt reductions pursuant to the sales of 1 32 Kevco Manufacturing, LP's operating divisions, the asset sale of the South Region of Kevco Distribution, as well as direct cash payments. 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 1,15); 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 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.
EX-99.3 5 d99305exv99w3.txt MONTHLY OPERATING REPORT FOR KEVCO HOLDING, INC. EXHIBIT 99.3 CASE NAME: KEVCO HOLDING, INC. ACCRUAL BASIS CASE NUMBER: 401-40785-BJH-11 JUDGE: BARBARA J. HOUSER UNITED STATES BANKRUPTCY COURT NORTHERN DISTRICT OF TEXAS -------- ----- FORT WORTH DIVISION ---------- MONTHLY OPERATING REPORT MONTH ENDING: JUNE 30, 2002 ------------- 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 JULY 18, 2002 - --------------------------------------- -------------------------------- Printed Name of Responsible Party Date PREPARER: /s/ DENNIS S. FAULKNER ACCOUNTANT FOR DEBTOR - --------------------------------------- -------------------------------- Original Signature of Preparer Title DENNIS S. FAULKNER JULY 18, 2002 - --------------------------------------- -------------------------------- Printed Name of Preparer Date CASE NAME: KEVCO HOLDING, INC. ACCRUAL BASIS - 1 CASE NUMBER: 401-40785-BJH-11 COMPARATIVE BALANCE SHEET
SCHEDULED MONTH MONTH MONTH ASSETS AMOUNT APR-02 MAY-02 JUN-02 - ------ ----------- ----------- ----------- ----------- 1. Unrestricted Cash 232 0 0 0 2. Restricted Cash 3. Total Cash 232 0 0 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 232 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 95,356,800 0 0 0 15. Other (Attach List) 14,496,631 14,496,631 14,496,631 14,496,631 16. Total Assets 109,853,663 14,496,631 14,496,631 14,496,631 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 13,768,129 13,858,277 13,945,516 25. Priority Debt 26. Unsecured Debt 27. Other (Attach List) 328,039,345 321,188,722 321,188,722 321,188,722 28. Total Pre Petition Liabilities 403,924,409 334,956,851 335,046,999 335,134,238 29. Total Liabilities 403,924,409 334,956,851 335,046,999 335,134,238 EQUITY 30. Pre Petition Owners' Equity (294,070,746) (294,070,746) (294,070,746) 31. Post Petition Cumulative Profit Or (Loss) (88,505,859) (88,505,859) (88,505,859) 32. Direct Charges To Equity (FOOTNOTE) 62,116,385 62,026,237 61,938,998 33. Total Equity (320,460,220) (320,550,368) (320,637,607) 34. Total Liabilities and Equity 14,496,631 14,496,631 14,496,631
This form x does does not have related footnotes on Footnotes Supplement. --- --- CASE NAME: KEVCO HOLDING, INC. SUPPLEMENT TO CASE NUMBER: 401-40785-BJH-11 ACCRUAL BASIS - 1 COMPARATIVE BALANCE SHEET
SCHEDULED MONTH MONTH MONTH ASSETS AMOUNT APR-02 MAY-02 JUN-02 - ------ ----------- ----------- ----------- ----------- A. B. C. D. E. TOTAL OTHER ASSETS - LINE 8 0 0 0 0 A. Goodwill: SSS 6,097,280 B. Goodwill: Bowen 13,569,437 C. Goodwill: BTE 1,657,846 D. Goodwill: Shelter 74,032,237 E. TOTAL OTHER ASSETS NET OF AMORTIZATION - LINE 14 95,356,800 0 0 0 A. Investment in Subsidiaries 14,496,631 14,496,631 14,496,631 14,496,631 B. C. D. E. TOTAL OTHER ASSETS - LINE 15 14,496,631 14,496,631 14,496,631 14,496,631 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) 199,539,345 192,688,722 192,688,722 192,688,722 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 27 328,039,345 321,188,722 321,188,722 321,188,722
CASE NAME: KEVCO HOLDING, INC. ACCRUAL BASIS - 2 CASE NUMBER: 401-40785-BJH-11
INCOME STATEMENT MONTH MONTH MONTH QUARTER REVENUES APR-02 MAY-02 JUN-02 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 0 13. Other (Attach List) 0 14. Total Operating Expenses 0 0 0 0 15. Income Before Non-Operating Income & Expense 0 0 0 0 OTHER INCOME & EXPENSES 16. Non-Operating Income (Att List) 0 0 0 0 17. Non-Operating Expense (Att List) 0 0 0 0 18. Interest Expense 0 19. Depreciation / Depletion 0 20. Amortization 0 21. Other (Attach List) 0 0 0 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 0 0 0
This form does x does not have related footnotes on Footnotes Supplement. --- --- CASE NAME: KEVCO HOLDING, INC. ACCRUAL BASIS - 3 CASE NUMBER: 401-40785-BJH-11
CASH RECEIPTS AND MONTH MONTH MONTH QUARTER DISBURSEMENTS APR-02 MAY-02 JUN-02 TOTAL - ------------- ------ ------ ------ --------- 1. Cash - Beginning Of Month 0 0 0 0 RECEIPTS FROM OPERATIONS 2. Cash Sales COLLECTION OF ACCOUNTS RECEIVABLE 3. Pre Petition 4. Post Petition 5. Total Operating Receipts NON-OPERATING RECEIPTS 6. Loans & Advances (Interco. Transfer) 7. Sale of Assets 8. Other (Attach List) 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 13. Payroll Taxes Paid 14. Sales, Use & Other Taxes Paid 15. Secured / Rental / Leases 16. Utilities 17. Insurance 18. Inventory Purchases 19. Vehicle Expenses 20. Travel 21. Entertainment 22. Repairs & Maintenance 23. Supplies 24. Advertising 25. Other (Attach List) 0 0 0 0 26. Total Operating Disbursements 0 0 0 0 REORGANIZATION DISBURSEMENTS 27. Professional Fees 28. U.S. Trustee Fees 29. Other (Attach List) 30. Total Reorganization Expenses 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. --- --- CASE NAME: KEVCO HOLDING, INC. ACCRUAL BASIS - 4 CASE NUMBER: 401-40785-BJH-11
SCHEDULED MONTH MONTH MONTH ACCOUNTS RECEIVABLE AGING AMOUNT APR-02 MAY-02 JUN-02 - ------------------------- --------- ------ ------ ------ 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-02 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 0 0 0 0 5. Total Taxes Payable 0 0 0 0 0 6. Accounts Payable 0
MONTH: June-02 --------- 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 0 0 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 onth 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 HOLDING, INC. ACCRUAL BASIS - 5 CASE NUMBER: 401-40785-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-02 ---------
BANK RECONCILIATIONS Account # 1 Account # 2 - -------------------- ----------- ----------- A. BANK: Other Accounts TOTAL B. ACCOUNT NUMBER: (Attach List) 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 6. Number of Last Check Written
INVESTMENT ACCOUNTS
DATE TYPE OF BANK, ACCOUNT NAME & NUMBER OF 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. --- --- CASE NAME: KEVCO HOLDING, INC. ACCRUAL BASIS - 6 CASE NUMBER: 401-40785-BJH-11 MONTH: June-02 --------- 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 NAME OF CREDITOR PAYMENTS DURING POST DUE MONTH PETITION ---------------- ------------ ------- ---------- 1. Bank of America 0 13,945,516 2. 3. 4. 5. (Attach List) 6. TOTAL 0 0 13,945,516
This form does x does not have related footnotes on Footnotes Supplement. --- --- CASE NAME: KEVCO HOLDING, INC. ACCRUAL BASIS - 7 CASE NUMBER: 401-40785-BJH-11 MONTH: June-02 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. KEVCO HOLDING, INC. HAS NO EMPLOYEES; OPERATES AS A HOLDING COMPANY. INSTALLMENT PAYMENTS
TYPE OF POLICY CARRIER PERIOD COVERED PAYMENT AMOUNT & FREQUENCY -------------- ------- -------------- -------------------------- General Liability Aon Risk Services 3/1/02-9/1/02 Semi-Annual $98,598 D&O Liability Great American Ins. 11/1/2001-10/31/2004 Annual $64,657
This form does x does not have related footnotes on Footnotes Supplement. --- --- CASE NAME: KEVCO HOLDING, INC. FOOTNOTES SUPPLEMENT CASE NUMBER: 401-40785-BJH-11 ACCRUAL BASIS MONTH: June-02 ------------
ACCRUAL BASIS FORM NUMBER LINE NUMBER FOOTNOTE / EXPLANATION - ------ ----------- ---------------------- 1 24 The direct charges to equity are due to the secured debt reductions pursuant to sales of 1 32 Kevco Manufacturing, L.P.'s operating divisions, the asset sale of the South Region of Kevco Distribution, as well as direct cash payments. 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 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), DCM Delaware, Inc. (Case No. 401-40787-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).
EX-99.4 6 d99305exv99w4.txt MONTHLY OPERATING REPORT FOR KEVCO GP, INC. EXHIBIT 99.4 CASE NAME: KEVCO GP, INC. ACCRUAL BASIS CASE NUMBER: 401-40786-BJH-11 JUDGE: BARBARA J. HOUSER UNITED STATES BANKRUPTCY COURT NORTHERN DISTRICT OF TEXAS -------- ----- FORT WORTH DIVISION ---------- MONTHLY OPERATING REPORT MONTH ENDING: JUNE 30, 2002 ------------- 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 JULY 18, 2002 - --------------------------------------- -------------------------- Printed Name of Responsible Party Date PREPARER: /s/ DENNIS S. FAULKNER ACCOUNTANT FOR DEBTOR - --------------------------------------- -------------------------- Original Signature of Preparer Title DENNIS S. FAULKNER JULY 18, 2002 - --------------------------------------- -------------------------- Printed Name of Preparer Date CASE NAME: KEVCO GP, INC. ACCRUAL BASIS - 1 CASE NUMBER: 401-40786-BJH-11 COMPARATIVE BALANCE SHEET
SCHEDULED MONTH MONTH MONTH ASSETS AMOUNT APR-02 MAY-02 JUN-02 - ------ ----------- ----------- ----------- ----------- 1. Unrestricted Cash 2. Restricted Cash 3. Total Cash 0 0 0 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 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) 360,837 360,837 360,837 360,837 16. Total Assets 360,837 360,837 360,837 360,837 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 13,768,129 13,858,277 13,945,516 25. Priority Debt 26. Unsecured Debt 27. Other (Attach List) 128,815,071 128,791,803 128,791,803 128,791,803 28. Total Pre Petition Liabilities 204,700,135 142,559,932 142,650,080 142,737,319 29. Total Liabilities 204,700,135 142,559,932 142,650,080 142,737,319 EQUITY 30. Pre Petition Owners' Equity (204,339,298) (204,339,298) (204,339,298) 31. Post Petition Cumulative Profit Or (Loss) 32. Direct Charges To Equity (Attach Explanation )(FOOTNOTE) 62,140,203 62,050,055 61,962,816 33. Total Equity (142,199,095) (142,289,243) (142,376,482) 34. Total Liabilities and Equity 360,837 360,837 360,837
This form x does does not have related footnotes on Footnotes Supplement. --- --- CASE NAME: KEVCO GP, INC. SUPPLEMENT TO CASE NUMBER: 401-40786-BJH-11 ACCRUAL BASIS - 1 COMPARATIVE BALANCE SHEET
SCHEDULED MONTH MONTH MONTH ASSETS AMOUNT APR-02 MAY-02 JUN-02 - ------ ----------- ----------- ----------- ----------- 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 360,837 360,837 360,837 360,837 B. C. D. E. TOTAL OTHER ASSETS - LINE 15 360,837 360,837 360,837 360,837 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) 315,071 291,803 291,803 291,803 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 27 128,815,071 128,791,803 128,791,803 128,791,803
CASE NAME: KEVCO GP, INC. ACCRUAL BASIS - 2 CASE NUMBER: 401-40786-BJH-11 INCOME STATEMENT
MONTH MONTH MONTH QUARTER REVENUES APR-02 MAY-02 JUN-02 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 0 13. Other (Attach List) 0 14. Total Operating Expenses 0 0 0 0 15. Income Before Non-Operating Income & Expense 0 0 0 0 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 0 0 0
This form does x does not have related footnotes on Footnotes Supplement. --- --- CASE NAME: KEVCO GP, INC. ACCRUAL BASIS - 3 CASE NUMBER: 401-40786-BJH-11
CASH RECEIPTS AND MONTH MONTH MONTH QUARTER DISBURSEMENTS APR-02 MAY-02 JUN-02 TOTAL - ------------- ------ ------ ------ ------- 1. Cash - Beginning Of Month 0 0 0 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 0 0 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 0 0 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. --- --- CASE NAME: KEVCO GP, INC. ACCRUAL BASIS - 4 CASE NUMBER: 401-40786-BJH-11
SCHEDULED MONTH MONTH MONTH ACCOUNTS RECEIVABLE AGING AMOUNT APR-02 MAY-02 JUN-02 - ------------------------- --------- ------ ------ ------ 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-02 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 0 0 0 0 5. Total Taxes Payable 0 0 0 0 0 6. Accounts Payable 0
MONTH: June-02 --------- 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 0 0 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 0 0 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 GP, INC. ACCRUAL BASIS - 5 CASE NUMBER: 401-40786-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-02 ----------
BANK RECONCILIATIONS Account # 1 Account # 2 - -------------------- ----------- ----------- A. BANK: Other Accounts TOTAL B. ACCOUNT NUMBER: (Attach List) C. PURPOSE (TYPE): 1. Balance Per Bank Statement 0 0 2. Add: Total Deposits Not Credited 0 0 3. Subtract: Outstanding Checks 0 0 4. Other Reconciling Items 0 0 5. Month End Balance Per Books 0 0 0 0 6. Number of Last Check Written
INVESTMENT ACCOUNTS
DATE TYPE OF BANK, ACCOUNT NAME & NUMBER OF PURCHASE INSTRUMENT PURCHASE PRICE CURRENT VALUE - --------------------------- ----------- ---------- -------------- ------------- 7. 8. 9. 10. (Attach List) 0 0 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. --- --- CASE NAME: KEVCO GP, INC. ACCRUAL BASIS - 6 CASE NUMBER: 401-40786-BJH-11 MONTH: June-02 ---------- 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) 0 0 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) 0 0 0 0 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 0 13,945,516 2. 3. 4. 5. (Attach List) 0 0 0 6. TOTAL 0 0 13,945,516
This form does x does not have related footnotes on Footnotes Supplement. --- --- CASE NAME: KEVCO GP, INC. ACCRUAL BASIS - 7 CASE NUMBER: 401-40786-BJH-11 MONTH: June-02 ----------- 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 operations. INSTALLMENT PAYMENTS
TYPE OF POLICY CARRIER PERIOD COVERED PAYMENT AMOUNT & FREQUENCY -------------- ------- -------------- -------------------------- General Liability Aon Risk Services 3/1/02-9/1/02 Semi-Annual $98,598 D&O Liability Great American Insurance 11/1/2001-10/31/2004 Annual $64,657
This form does x does not have related footnotes on Footnotes Supplement. --- --- CASE NAME: KEVCO GP, INC. FOOTNOTES SUPPLEMENT CASE NUMBER: 401-40786-BJH-11 ACCRUAL BASIS MONTH: June-02 -----------
ACCRUAL BASIS FORM NUMBER LINE NUMBER FOOTNOTE / EXPLANATION - ------ ----------- ---------------------- 1 24 The direct charges to equity are due to the secured debt reductions pursuant to sales of 1 32 Kevco Manufacturing, L.P.'s operating divisions, the asset sale of the South Region of Kevco Distribution as well as direct cash payments. 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 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), DCM Delaware, Inc. (Case No. 401-40787-BJH-11), and Kevco Components, Inc. (Case No. 401-40790-BJH-11).
EX-99.5 7 d99305exv99w5.txt MONTHLY OPERATING REPORT FOR 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, 2002 ------------- 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 RESPONSIBLEFPARTY): 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 JULY 18, 2002 - -------------------------------------- --------------------- Printed Name of Responsible Party Date PREPARER: /s/ DENNIS S. FAULKNER ACCOUNTANT FOR DEBTOR - -------------------------------------- --------------------- Original Signature of Preparer Title DENNIS S. FAULKNER JULY 18, 2002 - -------------------------------------- --------------------- 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 MONTH ASSETS AMOUNT APR-02 MAY-02 JUN-02 - ------ ---------- ---------- ---------- ---------- 1. Unrestricted Cash 134 0 0 0 2. Restricted Cash 3. Total Cash 134 0 0 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 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) 27,217,768 27,217,768 27,217,768 27,217,768 16. Total Assets 27,217,902 27,217,768 27,217,768 27,217,768 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 13,768,129 13,858,277 13,945,516 25. Priority Debt 26. Unsecured Debt 27. Other (Attach List) 157,389,954 157,391,764 157,391,764 157,391,764 28. Total Pre Petition Liabilities 233,275,018 171,159,893 171,250,041 171,337,280 29. Total Liabilities 233,275,018 171,159,893 171,250,041 171,337,280 EQUITY 30. Pre Petition Owners' Equity (206,057,116) (206,057,116) (206,057,116) 31. Post Petition Cumulative Profit Or (Loss) 21,221 21,221 21,221 32. Direct Charges To Equity (Attach Explanation) (FOOTNOTE) 62,093,770 62,003,622 61,916,383 33. Total Equity (143,942,125) (144,032,273) (144,119,512) 34. Total Liabilities and Equity 27,217,768 27,217,768 27,217,768
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 MONTH ASSETS AMOUNT APR-02 MAY-02 JUN-02 - ------ ---------- ---------- ---------- ---------- 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 27,217,768 B. C. D. E. TOTAL OTHER ASSETS - LINE 15 27,217,768 27,217,768 27,217,768 27,217,768 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 28,891,764 28,891,764 28,891,764 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 27 157,389,954 157,391,764 157,391,764 157,391,764
CASE NAME: KEVCO COMPONENTS, INC. ACCRUAL BASIS - 2 CASE NUMBER: 401-40790-BJH-11 INCOME STATEMENT
MONTH MONTH MONTH QUARTER REVENUES APR-02 MAY-02 JUN-02 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 0 13. Other (Attach List) 0 0 0 0 14. Total Operating Expenses 0 0 0 0 15. Income Before Non-Operating Income & Expense 0 0 0 0 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 0 0 0
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 MONTH QUARTER DISBURSEMENTS APR-02 MAY-02 JUN-02 TOTAL - ---------------- ---------- ---------- ---------- ---------- 1. Cash - Beginning Of Month 0 0 0 0 RECEIPTS FROM OPERATIONS 2. Cash Sales 0 0 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. --- --- CASE NAME: KEVCO COMPONENTS, INC. ACCRUAL BASIS - 4 CASE NUMBER: 401-40790-BJH-11
SCHEDULED MONTH MONTH MONTH ACCOUNTS RECEIVABLE AGING AMOUNT APR-02 MAY-02 JUN-02 - ------------------------- --------- ------ ------ ------ 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-02 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 0 0 0 0
STATUS OF POST PETITION TAXES MONTH: June-02 -------
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-02 -------
BANK RECONCILIATIONS Account # 1 Account # 2 - -------------------- ----------- ----------- A. BANK: Other Accounts TOTAL B. ACCOUNT NUMBER: (Attach Sheet) C. PURPOSE (TYPE): 1. Balance Per Bank Statement 2. Add: Total Deposits Not Credited 3. Subtract: Outstanding Checks 4. Other Reconciling Items 5. Month End Balance Per Books 0 0 6. Number of Last Check Written
INVESTMENT ACCOUNTS
DATE TYPE OF BANK, ACCOUNT NAME & NUMBER OF 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. --- --- CASE NAME: KEVCO COMPONENTS, INC. ACCRUAL BASIS - 6 CASE NUMBER: 401-40790-BJH-11 MONTH: June-02 ------- 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 0 0 13,945,516 2. 3. 4. 5. (Attach List) 6. TOTAL 0 0 13,945,516
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-02 ------- 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
TYPE OF POLICY CARRIER PERIOD COVERED PAYMENT AMOUNT & FREQUENCY - -------------- ------- -------------- -------------------------- General Liability Aon Risk Services 3/1/02-9/1/02 Semi-Annual $98,598 D&O Liability Great American Insurance 11/1/2001-10/31/2004 Annual $64,657
This form does x 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-02 -------
ACCRUAL BASIS FORM NUMBER LINE NUMBER FOOTNOTE / EXPLANATION - ------ ----------- ---------------------- 1 24 The direct charges to equity are due to the secured debt reductions pursuant to 1 32 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. 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 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).
EX-99.6 8 d99305exv99w6.txt MONTHLY OPERATING REPORT FOR DCM DELAWARE, INC. 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: JUNE 30, 2002 ------------- 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 JULY 18, 2002 - --------------------------------------- ------------------------- Printed Name of Responsible Party Date PREPARER: /s/ DENNIS S. FAULKNER ACCOUNTANT FOR DEBTOR - --------------------------------------- ------------------------- Original Signature of Preparer Title DENNIS S. FAULKNER JULY 18, 2002 - --------------------------------------- ------------------------- Printed Name of Preparer Date CASE NAME: DCM DELAWARE, INC. ACCRUAL BASIS - 1 CASE NUMBER: 401-40787-BJH-11 COMPARATIVE BALANCE SHEET
SCHEDULED MONTH MONTH MONTH ASSETS AMOUNT APR-02 MAY-02 JUN-02 - ------ ----------- ----------- ----------- ----------- 1. Unrestricted Cash 2. Restricted Cash 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 393 393 393 18. Taxes Payable 19. Notes Payable 20. Professional Fees 21. Secured Debt 22. Other (Attach List) 23. Total Post Petition Liabilities 393 393 393 PRE PETITION LIABILITIES 24. Secured Debt (FOOTNOTE) 75,885,064 13,768,129 13,858,277 13,945,516 25. Priority Debt 26. Unsecured Debt 27. Other (Attach List) 128,928,814 128,930,100 128,930,100 128,930,100 28. Total Pre Petition Liabilities 204,813,878 142,698,229 142,788,377 142,875,616 29. Total Liabilities 204,813,878 142,698,622 142,788,770 142,876,009 EQUITY 30. Pre Petition Owners' Equity (204,813,878) (204,813,878) (204,813,878) 31. Post Petition Cumulative Profit Or (Loss) (1,576) (1,576) (1,576) 32. Direct Charges To Equity (FOOTNOTE) 62,116,832 62,026,684 61,939,445 33. Total Equity (142,698,622) (142,788,770) (142,876,009) 34. Total Liabilities and Equity 0 0 0
This form x does does not have related footnotes on Footnotes Supplement. --- --- 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 APR-02 MAY-02 JUN-02 - ------ ----------- ----------- ----------- ----------- 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) 428,814 430,100 430,100 430,100 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 27 128,928,814 128,930,100 128,930,100 128,930,100
CASE NAME: DCM DELAWARE, INC. ACCRUAL BASIS - 2 CASE NUMBER: 401-40787-BJH-11 INCOME STATEMENT
MONTH MONTH MONTH QUARTER REVENUES APR-02 MAY-02 JUN-02 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 0 13. Other (Attach List) 0 14. Total Operating Expenses 0 0 0 0 15. Income Before Non-Operating Income & Expense 0 0 0 0 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 0 0 0
This form does x does not have related footnotes on Footnotes Supplement. --- --- CASE NAME: DCM DELAWARE, INC. ACCRUAL BASIS - 3 CASE NUMBER: 401-40787-BJH-11
CASH RECEIPTS AND MONTH MONTH MONTH QUARTER DISBURSEMENTS APR-02 MAY-02 JUN-02 TOTAL - ------------- ------ ------ ------ ----- 1. Cash - Beginning Of Month 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 does x does not have related footnotes on Footnotes Supplement. --- --- CASE NAME: DCM DELAWARE, INC. ACCRUAL BASIS - 4 CASE NUMBER: 401-40787-BJH-11
SCHEDULED MONTH MONTH MONTH ACCOUNTS RECEIVABLE AGING AMOUNT APR-02 MAY-02 JUN-02 - ------------------------- --------- ------ ------ ------ 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-02 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 0 0 393 393
MONTH: June-02 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: 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: June-02 -----------
BANK RECONCILIATIONS Account # 1 Account # 2 - -------------------- ----------- ----------- A. BANK: Other Accounts TOTAL B. ACCOUNT NUMBER: (Attach List) 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 0 6. Number of Last Check Written
INVESTMENT ACCOUNTS
DATE TYPE OF BANK, ACCOUNT NAME & NUMBER OF 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. --- --- CASE NAME: DCM DELAWARE, INC. ACCRUAL BASIS - 6 CASE NUMBER: 401-40787-BJH-11 MONTH: June-02 ---------- 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 0 0 13,945,516 2. 3. 4. 5. (Attach List) 6. TOTAL 0 0 13,945,516
This form does X does not have related footnotes on Footnotes Supplement. --- --- CASE NAME: DCM DELAWARE, INC. ACCRUAL BASIS - 7 CASE NUMBER: 401-40787-BJH-11 MONTH: June-02 --------- 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 operations. INSTALLMENT PAYMENTS
TYPE OF POLICY CARRIER PERIOD COVERED PAYMENT AMOUNT & FREQUENCY - -------------- ------- -------------- -------------------------- General Liability Aon Risk Services 3/1/02-9/1/02 Semi-Annual $98,598 D&O Liability Great American Insurance 11/1/2001-10/31/2004 Annual $64,657
This form does x does not have related footnotes on Footnotes Supplement. --- --- CASE NAME: DCM DELAWARE, INC. FOOTNOTES SUPPLEMENT CASE NUMBER: 401-40787-BJH-11 ACCRUAL BASIS MONTH: June-02 -----------
ACCRUAL BASIS FORM NUMBER LINE NUMBER FOOTNOTE / EXPLANATION - ------ ----------- ---------------------- 1 24 The direct charges to equity are due to the secured debt reductions 1 32 pursuant to sales of Kevco Manufacturing, L.P.'s operating divisions, the sale of the South Region of Kevco Distribution, as well as direct cash payments. 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 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).
EX-99.7 9 d99305exv99w7.txt MONTHLY OPERATING REPORT FOR KEVCO MANUFACTURING EXHIBIT 99.7 CASE NAME: KEVCO MANUFACTURING, LP ACCRUAL BASIS CASE NUMBER: 401-40784-BJH-11 JUDGE: BARBARA J. HOUSER UNITED STATES BANKRUPTCY COURT NORTHERN DISTRICT OF TEXAS -------- ----- FORT WORTH DIVISION ---------- MONTHLY OPERATING REPORT MONTH ENDING: JUNE 30, 2002 ------------- 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 JULY 18, 2002 - --------------------------------------- ---------------------------- Printed Name of Responsible Party Date PREPARER: /s/ DENNIS S. FAULKNER DEBTOR'S ACCOUNTANT - --------------------------------------- ---------------------------- Original Signature of Preparer Title DENNIS S. FAULKNER JULY 18, 2002 - --------------------------------------- ---------------------------- Printed Name of Preparer Date CASE NAME: KEVCO MANUFACTURING, LP ACCRUAL BASIS - 1 CASE NUMBER: 401-40784-BJH-11 COMPARATIVE BALANCE SHEET
SCHEDULED MONTH MONTH MONTH ASSETS AMOUNT APR-02 MAY-02 JUN-02 - ------ ----------- ----------- ----------- ----------- 1. Unrestricted Cash (FOOTNOTE) 41,683 0 0 0 2. Restricted Cash 3. Total Cash 41,683 0 0 0 4. Accounts Receivable (Net) (FOOTNOTE) 7,974,696 0 0 0 5. Inventory (FOOTNOTE) 14,793,828 0 0 0 6. Notes Receivable 7. Prepaid Expenses 196,584 0 0 0 8. Other (Attach List) 0 0 0 0 9. Total Current Assets 23,006,791 0 0 0 10. Property, Plant & Equip. (FOOTNOTE) 32,082,187 1,771,093 0 0 11. Less: Accumulated Depreciation (7,696,543) (250,320) 0 0 12. Net Property, Plant & Equipment 24,385,644 1,520,773 0 0 13. Due From Insiders 14. Other Assets - Net of Amortization (Attach List) 8,369,096 0 0 0 15. Other (Attach List) 13,541,943 45,421,985 45,421,985 45,421,985 16. Total Assets 69,303,474 46,942,758 45,421,985 45,421,985 POST PETITION LIABILITIES 17. Accounts Payable 18. Taxes Payable 1,111 0 0 19. Notes Payable 20. Professional Fees 21. Secured Debt 22. Other (Attach List) 131,388 131,388 131,388 23. Total Post Petition Liabilities 132,499 131,388 131,388 PRE PETITION LIABILITIES 24. Secured Debt (FOOTNOTE) 75,885,064 13,768,129 13,858,277 13,945,516 25. Priority Debt (FOOTNOTE) 1,383,756 26. Unsecured Debt 5,139,545 2,733,206 2,733,206 2,733,206 27. Other (Attach List) 197,008,999 197,810,449 196,487,204 196,487,204 28. Total Pre Petition Liabilities 279,417,364 214,311,784 213,078,687 213,165,926 29. Total Liabilities 279,417,364 214,444,283 213,210,075 213,297,314 EQUITY 30. Pre Petition Owners' Equity (210,107,292) (210,107,292) (210,107,292) 31. Post Petition Cumulative Profit Or (Loss) (19,105,459) (19,301,875) (19,301,875) 32. Direct Charges To Equity (Attach Explanation FOOTNOTE) 61,711,226 61,621,077 61,533,838 33. Total Equity (167,501,525) (167,788,090) (167,875,329) 34. Total Liabilities and Equity 46,942,758 45,421,985 45,421,985
This form x does does not have related footnotes on Footnotes Supplement --- --- CASE NAME: KEVCO MANUFACTURING, LP SUPPLEMENT TO CASE NUMBER: 401-40784-BJH-11 ACCRUAL BASIS - 1 COMPARATIVE BALANCE SHEET
SCHEDULED MONTH MONTH MONTH ASSETS AMOUNT APR-02 MAY-02 JUN-02 - ------ ----------- ----------- ----------- ----------- A. B. C. D. E. TOTAL OTHER ASSETS - LINE 8 0 0 0 0 A. Goodwill: Consolidated Forest Products 8,369,096 0 0 0 B. C. D. E. TOTAL OTHER ASSETS NET OF AMORTIZATION - LINE 14 8,369,096 0 0 0 A. Intercompany Receivables (FOOTNOTE) 13,541,943 45,421,985 45,421,985 45,421,985 B. C. D. E. TOTAL OTHER ASSETS - LINE 15 13,541,943 45,421,985 45,421,985 45,421,985 POST PETITION LIABILITIES A. Accrued Liabilities 131,388 131,388 131,388 B. C. D. E. TOTAL OTHER POST PETITION LIABILITIES - LINE 22 131,388 131,388 131,388 PRE PETITION LIABILITIES A. Interco. Payables (FOOTNOTE) 68,508,999 69,310,449 67,987,204 67,987,204 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 27 197,008,999 197,810,449 196,487,204 196,487,204
CASE NAME: KEVCO MANUFACTURING, LP ACCRUAL BASIS - 2 CASE NUMBER: 401-40784-BJH-11
INCOME STATEMENT MONTH MONTH MONTH QUARTER REVENUES APR-02 MAY-02 JUN-02 TOTAL - -------- ------ ------ ------ -------- 1. Gross Revenues 0 0 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 9 0 0 9 12. Rent & Lease 0 13. Other (Attach List) 0 14. Total Operating Expenses 9 0 0 9 15. Income Before Non-Operating Income & Expense (9) 0 0 (9) OTHER INCOME & EXPENSES 16. Non-Operating (Income) (Att List) (19) 0 0 (19) 17. Non-Operating Expense (Att List) 0 196,416 0 196,416 18. Interest Expense 0 19. Depreciation / Depletion 0 20. Amortization 0 21. Other (Attach List) 0 22. Net Other Income & (Expenses) 19 (196,416) 0 (196,397) 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) 10 (196,416) 0 (196,406) This form does x does not have related footnotes on Footnotes Supplement. --- ---
CASE NAME: KEVCO MANUFACTURING, LP SUPPLEMENT TO CASE NUMBER: 401-40784-BJH-11 ACCRUAL BASIS - 2
INCOME STATEMENT MONTH MONTH MONTH QUARTER OPERATING EXPENSES APR-02 MAY-02 JUN-02 TOTAL - ------------------ ------ ------- ------ ------- A. 0 B. 0 C. 0 D. 0 E. 0 TOTAL OTHER OPERATING EXPENSES - LINE 13 0 0 0 0 OTHER INCOME & EXPENSES A. Interest Income 19 0 0 19 B. 0 C. 0 TOTAL NON-OPERATING INCOME - LINE 16 19 0 0 19 A. Net Loss on sale of Assets 20,772 0 20,772 B. Commissions paid at sale of Protecta Drive 90,000 0 90,000 C. Taxes paid at sale of Protecta Drive 85,234 0 85,234 D. Miscellaneous fees paid at sale of Protecta Drive 410 0 410 TOTAL NON-OPERATING EXPENSE - LINE 17 0 196,416 0 196,416 REORGANIZATION EXPENSES A. 0 B. 0 C. 0 D. 0 E. 0 REORGANIZATION EXPENSES - LINE 25 0 0 0 0
CASE NAME: KEVCO MANUFACTURING, LP ACCRUAL BASIS - 3 CASE NUMBER: 401-40784-BJH-11
CASH RECEIPTS AND MONTH MONTH MONTH QUARTER DISBURSEMENTS APR-02 MAY-02 JUN-02 TOTAL - ------------- ------ ------ ------ ------- 1. Cash - Beginning Of Month SEE ATTACHED SUPPLEMENT AND FOOTNOTE RECEIPTS FROM OPERATIONS 2. Cash Sales COLLECTION OF ACCOUNTS RECEIVABLE 3. Pre Petition 4. Post Petition 5. Total Operating Receipts NON-OPERATING RECEIPTS 6. Loans & Advances (Attach List) 7. Sale of Assets 8. Other (Attach List) 9. Total Non-Operating Receipts 10. Total Receipts 11. Total Cash Available OPERATING DISBURSEMENTS 12. Net Payroll 13. Payroll Taxes Paid 14. Sales, Use & Other Taxes Paid 15. Secured / Rental / Leases 16. Utilities 17. Insurance 18. Inventory Purchases 19. Vehicle Expenses 20. Travel 21. Entertainment 22. Repairs & Maintenance 23. Supplies 24. Advertising 25. Other (Attach List) 26. Total Operating Disbursements REORGANIZATION DISBURSEMENTS 27. Professional Fees 28. U.S. Trustee Fees 29. Other (Attach List) 30. Total Reorganization Expenses 31. Total Disbursements 32. Net Cash Flow 33. Cash - End of Month
This form x does does not have related footnotes on Footnotes Supplement. --- --- CASE NAME: KEVCO MANUFACTURING LP SUPPLEMENT TO ACCRUAL BASIS - 3 JUNE, 2002 CASE NUMBER: 401-40784-BJH-11 CASH RECEIPTS AND DISBURSEMENTS
DIST LP MFG MGMT HOLDING COMP KEVCO INC TOTAL ------- --- ---- ------- ---- --------- ----- 1. CASH-BEGINNING OF MONTH -- -- 4,866,245 -- -- -- 4,866,245 RECEIPTS FROM OPERATIONS 2. CASH SALES -- -- -- COLLECTION OF ACCOUNTS RECEIVABLE 3. PRE PETITION -- -- -- 4. POST PETITION -- -- 5. TOTAL OPERATING RECEIPTS -- -- -- -- -- -- -- NON OPERATING RECEIPTS 6. LOANS & ADVANCES -- -- 7. SALE OF ASSETS -- 8. OTHER 88,235 -- 1,085,606 -- -- -- 1,173,841 INTERCOMPANY TRANSFERS (87,675) 87,675 -- -- SALE EXPENSE REIMBURSEMENT INCOME TAX REFUND 1,955 REBATE 88,235 WORKERS COMP REFUND 1,077,239 MISC 210 -- INTEREST INCOME -- 6,202 9. TOTAL NON OPERATING RECEIPTS 560 -- 1,173,281 -- -- -- 1,173,841 10. TOTAL RECEIPTS 560 -- 1,173,281 -- -- -- 1,173,841 11. CASH AVAILABLE 560 -- 6,039,526 -- -- -- 6,040,086 OPERATING DISBURSEMENTS 12. NET PAYROLL 12,771 12,771 13. PAYROLL TAXES PAID -- 4,788 4,788 14. SALES, USE & OTHER TAXES PAID -- -- 15. SECURED/RENTAL/LEASES -- 4,820 4,820 16. UTILITIES -- 324 324 17. INSURANCE -- 844 844 18. INVENTORY PURCHASES -- -- 19. VEHICLE EXPENSE -- -- 20. TRAVEL -- -- 21. ENTERTAINMENT -- -- 22. REPAIRS & MAINTENANCE 560 -- 560 23. SUPPLIES -- -- 24. ADVERTISING -- 25. OTHER -- -- 463 -- -- -- 463 LOAN PAYMENTS -- -- -- FREIGHT -- -- CONTRACT LABOR -- -- 401 K PAYMENTS -- -- PAYROLL TAX ADVANCE ADP -- WAGE GARNISHMENTS -- MISC -- 463 463 26. TOTAL OPERATING DISBURSEMENTS 560 -- 24,010 -- -- -- 24,570 REORGANIZATION DISBURSEMENTS 27. PROFESSIONAL FEES 926,143 926,143 28. US TRUSTEE FEES -- -- 29. OTHER 41,804 41,804 30. TOTAL REORGANIZATION EXPENSE -- -- 967,947 -- -- -- 967,947 31. TOTAL DISBURSEMENTS 560 -- 991,957 -- -- -- 992,517 32. NET CASH FLOW -- -- 181,324 -- -- -- 181,324 33. CASH - END OF MONTH -- -- 5,047,569 -- -- -- 5,047,569
CASE NAME: KEVCO MANUFACTURING, LP ACCRUAL BASIS - 4 CASE NUMBER: 401-40784-BJH-11
SCHEDULED MONTH MONTH MONTH ACCOUNTS RECEIVABLE AGING AMOUNT APR-02 MAY-02 JUN-02 - ------------------------- --------- ------ ------ ------ 1. 0 - 30 0 0 0 2. 31 - 60 3. 61 - 90 4. 91 + 5. Total Accounts Receivable 7,974,696 0 0 0 6. (Amount Considered Uncollectible) 7. Accounts Receivable (Net) 7,974,696 0 0 0
AGING OF POST PETITION MONTH: June-02 TAXES AND PAYABLES -----------
0 - 30 31 - 60 61 - 90 91 + TAXES PAYABLE DAYS DAYS DAYS DAYS TOTAL - ------------- ------ ------- ------- ------ ----- 1. Federal -- 2. State -- -- 3. Local -- 4. Other (See Below) -- -- 5. Total Taxes Payable -- 0 0 0 -- 6. Accounts Payable 0 0
STATUS OF POST PETITION TAXES MONTH: June-02 -----------
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 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 MANUFACTURING, LP ACCRUAL BASIS - 5 CASE NUMBER: 401-40784-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, MONTH: June-02 -----------
BANK RECONCILIATIONS Account # 1 Account # 2 ----------- ----------- A. BANK: Summit Bank Summit Bank Other Accounts TOTAL B. ACCOUNT NUMBER: 1-0138099 1-0137836 (Attach List) C. PURPOSE (TYPE): Depository Depository 1. Balance Per Bank Statement 2. Add: Total Deposits Not Credited 3. Subtract: Outstanding Checks 4. Other Reconciling Items 5. Month End Balance Per Books 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 - --------------------------- -------- ---------- -------------- ------------- 7. 8. 9. 10. (Attach List) 11. Total Investments 0 0 CASH 12. Currency On Hand 0 Reclass to Accounts Payable 13. Total Cash - End of Month 0
This form does x does not have related footnotes on Footnotes Supplement. --- --- CASE NAME: KEVCO MANUFACTURING, LP ACCRUAL BASIS - 6 CASE NUMBER: 401-40784-BJH-11 MONTH: June-02 ----------- 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 TOTAL PAID NAME PAYMENT AMOUNT PAID TO DATE ---- ------- ----------- ---------- 1. Lee Denham Payroll/severance 134,620 2. Lee Denham Expense Reimb. 254 3. Jim Connors Consulting fees and expenses 114,975 4. Jim Connors Division Sale Bonuses 112,500 5. (Attach List) 6. Total Payments To Insiders 0 362,349
PROFESSIONALS
DATE OF COURT ORDER TOTAL AUTHORIZING AMOUNT AMOUNT TOTAL PAID INCURRED & NAME PAYMENT APPROVED PAID TO DATE UNPAID* ---- ----------- -------- ------ ---------- ---------- 1. Gordion Group 03/20/01 301,398 0 301,398 0 2. 3. 4. 5. (Attach List) 6. Total Payments To Professionals 301,398 0 301,398 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 N/A 13,945,516 2. Status of Leases Payable None 3. 4. 5. (Attach List) 6. TOTAL 0 0 13,945,516
This form does x does not have related footnotes on Footnotes Supplement. --- --- CASE NAME: KEVCO MANUFACTURING, LP ACCRUAL BASIS - 7 CASE NUMBER: 401-40784-BJH-11 MONTH: June-02 ----------- 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, Auto, General Liability Aon Risk Services 3/1/02-9/1/02 Semi-Annual $98,598 D&O Liability Great American Insurance 11/1/2001-10/31/2004 Annual $64,657
This form x does does not have related footnotes on Footnotes Supplement. --- --- CASE NAME: KEVCO MANUFACTURING, LP FOOTNOTES SUPPLEMENT CASE NUMBER: 401-40784-BJH-11 ACCRUAL BASIS MONTH: JUNE 30, 2002 -------------
DUAL BASIS FORM NUMBER LINE NUMBER FOOTNOTE / EXPLANATION - ------ ----------- ---------------------- 1 1 Pursuant to the February 12, 2001 Order (1) 3 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 to Kevco, Inc. and its subsidiaries is included in this report as a Supplement to Accrual Basis -3. 1 4 The sale of Debtor's real property on Protecta Drive 1 5 in Elkhart, Indiana was finalized during May 2002. 1 10 Proceeds from the sale have been placed in a segregated account (see the Supplement to Accrual Basis-3). Pursuant to other Asset Purchase Agreements approved by the Court (details are in prior Monthly Operating Reports), Debtor has sold all of its assets other than intercompany receivables. 1 15A Intercompany receivables/payables are from/to 1 27A co-debtors Kevco Management Co. (Case No. 7 3 401-40788-BJH-11), Kevco 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). 1 24 The direct charges to equity are due to secured debt 1 32 reductions pursuant to asset sales by Debtor and its co-debtors as well as direct cash payments. 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 1,15A); 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 25 Pursuant to Order dated February 12, 2001 and Supplemental Order dated March 14, 2001, debtors were authorized to pay pre-petition taxes, 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.
EX-99.8 10 d99305exv99w8.txt MONTHLY OPERATING REPORT FOR KEVCO DISTRIBUTION LP EXHIBIT 99.8 CASE NAME: KEVCO DISTRIBUTION, LP ACCRUAL BASIS CASE NUMBER: 401-40789-BJH-11 JUDGE: BARBARA J. HOUSER UNITED STATES BANKRUPTCY COURT NORTHERN DISTRICT OF TEXAS -------- ----- FORT WORTH DIVISION ---------- MONTHLY OPERATING REPORT MONTH ENDING: JUNE 30, 2002 ------------- 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 JULY 18, 2002 - --------------------------------------- ----------------------------- Printed Name of Responsible Party Date PREPARER: /s/ DENNIS S. FAULKNER DEBTOR'S ACCOUNTANT - --------------------------------------- ----------------------------- Original Signature of Preparer Title DENNIS S. FAULKNER JULY 18, 2002 - --------------------------------------- ----------------------------- Printed Name of Preparer Date CASE NAME: KEVCO DISTRIBUTION, LP ACCRUAL BASIS - 1 CASE NUMBER: 401-40789-BJH-11 COMPARATIVE BALANCE SHEET
SCHEDULED MONTH MONTH MONTH ASSETS AMOUNT APR-02 MAY-02 JUN-02 - ------ ----------- ----------- ----------- ----------- 1. Unrestricted Cash (FOOTNOTE) 41,421 0 0 0 2. Restricted Cash 3. Total Cash 41,421 0 0 0 4. Accounts Receivable-Net (FOOTNOTE) 17,545,859 314,759 314,759 314,759 5. Inventory (FOOTNOTE) 27,611,039 6. Notes Receivable 7. Prepaid Rent 236,697 8. Other (Attach List) 303,392 9. Total Current Assets 45,738,408 314,759 314,759 314,759 10. Property, Plant & Equipment 22,049,500 9,739,582 9,050,425 9,050,425 11. Less: Accumulated Depreciation/Depletion (6,151,901) (844,526) (788,687) (788,687) 12. Net Property, Plant & Equipment (FOOTNOTE) 15,897,599 8,895,056 8,261,738 8,261,738 13. Due From Insiders 14. Other Assets - Net of Amortization (Attach List) 5,741,869 481,876 481,876 481,876 15. Other (Attach List) 100,961,429 124,215,962 124,215,962 124,215,962 16. Total Assets 168,339,305 133,907,653 133,274,335 133,274,335 POST PETITION LIABILITIES 17. Accounts Payable 18. Taxes Payable (FOOTNOTE) 402,039 384,707 384,707 19. Notes Payable 20. Professional Fees 21. Secured Debt 22. Other (Attach List) (FOOTNOTE) 1,705,946 1,705,946 1,705,946 23. Total Post Petition Liabilities 2,107,985 2,090,653 2,090,653 PRE PETITION LIABILITIES 24. Secured Debt (FOOTNOTE) 75,885,064 13,768,129 13,858,277 13,945,516 25. Priority Debt (FOOTNOTE) 1,412,879 26. Unsecured Debt 19,966,456 18,555,081 18,555,081 18,555,081 27. Other (Attach List) 243,205,150 245,005,024 244,311,408 244,223,733 28. Total Pre Petition Liabilities 340,469,549 277,328,234 276,724,766 276,724,330 29. Total Liabilities 340,469,549 279,436,219 278,815,419 278,814,983 EQUITY 30. Pre Petition Owners' Equity (172,130,244) (172,130,244) (172,130,244) 31. Post Petition Cumulative Profit Or (Loss) (33,710,908) (33,633,278) (33,545,603) 32. Direct Charges To Equity (FOOTNOTE) 60,312,586 60,222,438 60,135,199 33. Total Equity (145,528,566) (145,541,084) (145,540,648) 34. Total Liabilities and Equity 133,907,653 133,274,335 133,274,335
This form x does does not have related footnotes on Footnotes Supplement. --- ---- CASE NAME: KEVCO DISTRIBUTION, LP SUPPLEMENT TO CASE NUMBER: 401-40789-BJH-11 ACCRUAL BASIS - 1 COMPARATIVE BALANCE SHEET
SCHEDULED MONTH MONTH MONTH ASSETS AMOUNT APR-02 MAY-02 JUN-02 - ------ ----------- ----------- ----------- ----------- A. Inventory Vendor Deposit 130,000 B. Leased Facility Deposit 173,392 C. D. E. TOTAL OTHER ASSETS - LINE 8 303,392 0 0 0 A. Goodwill: Shepherd Products 5,223,119 B. Goodwill: DARCO 518,750 C. Capitalized Lease 481,876 481,876 481,876 D. E. TOTAL OTHER ASSETS NET OF AMORTIZATION - LINE 14 5,741,869 481,876 481,876 481,876 A. Intercompany Receivables (FOOTNOTE) 100,961,429 124,215,962 124,215,962 124,215,962 B. C. D. E. TOTAL OTHER ASSETS - LINE 15 100,961,429 124,215,962 124,215,962 124,215,962 POST PETITION LIABILITIES A. Accrued Liabilities 588,787 588,787 588,787 B. Long Term Leases 1,107,492 1,107,492 1,107,492 C. Accrued Interest: Bank 9,667 9,667 9,667 D. E. TOTAL OTHER POST PETITION LIABILITIES - LINE 22 1,705,946 1,705,946 1,705,946 PRE PETITION LIABILITIES A. Interco. Payables (FOOTNOTE) 114,705,150 116,505,024 115,811,408 115,723,733 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 27 243,205,150 245,005,024 244,311,408 244,223,733
CASE NAME: KEVCO DISTRIBUTION, LP ACCRUAL BASIS - 2 CASE NUMBER: 401-40789-BJH-11
INCOME STATEMENT MONTH MONTH MONTH QUARTER REVENUES APR-02 MAY-02 JUN-02 TOTAL - -------- ---------- ---------- ---------- ---------- 1. Gross Revenues 0 0 0 2. Less: Returns & Discounts 3. Net Revenue 0 0 0 COST OF GOODS SOLD 4. Material 5. Direct Labor 6. Direct Overhead 7. Total Cost Of Goods Sold 0 0 0 8. Gross Profit OPERATING EXPENSES 9. Officer / Insider Compensation 10. Selling & Marketing 11. General & Administrative 12. Rent & Lease 13. Other (Attach List) 560 560 14. Total Operating Expenses 0 0 560 560 15. Income Before Non-Operating Income & Expense (560) (560) OTHER INCOME & EXPENSES 16. Non-Operating Income (Att List) (126,682) (88,235) (214,917) 17. Non-Operating Expense (Att List) 49,052 49,052 18. Interest Expense 19. Depreciation / Depletion 20. Amortization 21. Other (Attach List) 22. Net Other Income & Expenses 0 (77,630) (88,235) (165,865) REORGANIZATION EXPENSES 23. Professional Fees 24. U.S. Trustee Fees 25. Other (Attach List) 26. Total Reorganization Expenses 0 0 0 27. Income Tax 28. Net (Profit) Loss 0 (77,630) (87,675) (166,425)
This form does x does not have related footnotes on Footnotes Supplement. --- --- CASE NAME: KEVCO DISTRIBUTION, LP SUPPLEMENT TO CASE NUMBER: 401-40789-BJH-11 ACCRUAL BASIS - 2
INCOME STATEMENT MONTH MONTH MONTH QUARTER OPERATING EXPENSES APR-02 MAY-02 JUN-02 TOTAL - ------------------ ---------- ---------- ---------- ---------- A. Property Maintenance 560 560 B. 0 C. 0 D. 0 E. 0 TOTAL OTHER OPERATING EXPENSES - LINE 13 0 0 560 560 OTHER INCOME & EXPENSES A. Gain on sale of Assets 126,682 126,682 B. Vendor Rebate 88,235 88,235 0 TOTAL NON-OPERATING INCOME - LINE 16 0 126,682 88,235 214,917 A. Commissions paid at sale of Georgia Property 45,600 45,600 B. Income Taxes paid at sale of Georgia Property 2,584 2,584 C. Miscellaneous fees paid at sale of Georgia property 868 868 TOTAL NON-OPERATING EXPENSE - LINE 17 0 49,052 0 49,052 REORGANIZATION EXPENSES A. 0 B. 0 C. 0 D. 0 E. 0 TOTAL OTHER REORGANIZATION EXPENSES - LINE 25 0 0 0 0
CASE NAME: KEVCO DISTRIBUTION, LP ACCRUAL BASIS - 3 CASE NUMBER: #REF!
CASH RECEIPTS AND MONTH MONTH MONTH QUARTER DISBURSEMENTS APR-02 MAY-02 JUN-02 TOTAL - ----------------- ---------- ---------- ---------- ---------- 1. Cash - Beginning Of Month SEE ATTACHED SUPPLEMENT AND FOOTNOTE RECEIPTS FROM OPERATIONS 2. Cash Sales COLLECTION OF ACCOUNTS RECEIVABLE 3. Pre Petition 4. Post Petition 5. Total Operating Receipts NON-OPERATING RECEIPTS 6. Loans & Advances (Attach List) 7. Sale of Assets 8. Other (Attach List) 9. Total Non-Operating Receipts 10. Total Receipts 11. Total Cash Available OPERATING DISBURSEMENTS 12. Net Payroll 13. Payroll Taxes Paid 14. Sales, Use & Other Taxes Paid 15. Secured / Rental / Leases 16. Utilities 17. Insurance 18. Inventory Purchases 19. Vehicle Expenses 20. Travel 21. Entertainment 22. Repairs & Maintenance 23. Supplies 24. Advertising 25. Other (Attach List) 26. Total Operating Disbursements REORGANIZATION DISBURSEMENTS 27. Professional Fees 28. U.S. Trustee Fees 29. Other (Attach List) 30. Total Reorganization Expenses 31. Total Disbursements 32. Net Cash Flow 33. Cash - End of Month
This form x does does not have related footnotes on Footnotes Supplement. --- --- CASE NAME: KEVCO DISTRIBUTION LP SUPPLEMENT TO ACCRUAL BASIS - 3 JUNE, 2002 CASE NUMBER: 401-40789-BJH-11 CASH RECEIPTS AND DISBURSEMENTS
DIST LP MFG MGMT HOLDING COMP KEVCO INC TOTAL ------- --- --------- ------- ---- --------- ---------- 1. CASH-BEGINNING OF MONTH -- -- 4,866,245 -- -- -- 4,866,245 RECEIPTS FROM OPERATIONS 2. CASH SALES -- -- -- COLLECTION OF ACCOUNTS RECEIVABLE 3. PRE PETITION -- -- -- 4. POST PETITION -- -- 5. TOTAL OPERATING RECEIPTS -- -- -- -- -- -- -- NON OPERATING RECEIPTS 6. LOANS & ADVANCES -- -- 7. SALE OF ASSETS -- 8. OTHER 88,235 -- 1,085,606 -- -- -- 1,173,841 INTERCOMPANY TRANSFERS (87,675) 87,675 -- -- SALE EXPENSE REIMBURSEMENT INCOME TAX REFUND 1,955 REBATE 88,235 WORKERS COMP REFUND 1,077,239 MISC. 210 -- INTEREST INCOME -- 6,202 9. TOTAL NON OPERATING RECEIPTS 560 -- 1,173,281 -- -- -- 1,173,841 10. TOTAL RECEIPTS 560 -- 1,173,281 -- -- -- 1,173,841 11. CASH AVAILABLE 560 -- 6,039,526 -- -- -- 6,040,086 OPERATING DISBURSEMENTS 12. NET PAYROLL 12,771 12,771 13. PAYROLL TAXES PAID -- 4,788 4,788 14. SALES, USE & OTHER TAXES PAID -- -- 15. SECURED/RENTAL/LEASES -- 4,820 4,820 16. UTILITIES -- 324 324 17. INSURANCE -- 844 844 18. INVENTORY PURCHASES -- -- 19. VEHICLE EXPENSE -- -- 20. TRAVEL -- -- 21. ENTERTAINMENT -- -- 22. REPAIRS & MAINTENANCE 560 -- 560 23. SUPPLIES -- -- 24. ADVERTISING -- 25. OTHER -- -- 463 -- -- -- 463 LOAN PAYMENTS -- -- -- FREIGHT -- -- CONTRACT LABOR -- -- 401 K PAYMENTS -- -- PAYROLL TAX ADVANCE ADP -- WAGE GARNISHMENTS -- MISC. 463 463 26. TOTAL OPERATING DISBURSEMENTS 560 -- 24,010 -- -- -- 24,570 REORGANIZATION DISBURSEMENTS 27. PROFESSIONAL FEES 926,143 926,143 28. US TRUSTEE FEES -- -- 29. OTHER 41,804 41,804 30. TOTAL REORGANIZATION EXPENSE -- -- 967,947 -- -- -- 967,947 31. TOTAL DISBURSEMENTS 560 -- 991,957 -- -- -- 992,517 32. NET CASH FLOW -- -- 181,324 -- -- -- 181,324 33. CASH - END OF MONTH -- -- 5,047,569 -- -- -- 5,047,569
CASE NAME: KEVCO DISTRIBUTION, LP ACCRUAL BASIS - 4 CASE NUMBER: 401-40789-BJH-11
SCHEDULED MONTH MONTH MONTH ACCOUNTS RECEIVABLE AGING AMOUNT APR-02 MAY-02 JUN-02 - ------------------------- --------- ------ ------ ------ 1. 0 - 30 2. 31 - 60 3. 61 - 90 4. 91 + 314,759 314,759 314,759 5. Total Accounts Receivable 17,545,859 314,759 314,759 314,759 6. (Amount Considered Uncollectible) 7. Accounts Receivable (Net) (FOOTNOTE) 17,545,859 314,759 314,759 314,759
AGING OF POST PETITION MONTH: June-02 TAXES AND PAYABLES ------------
0 - 30 31 - 60 61 - 90 91 + TAXES PAYABLE DAYS DAYS DAYS DAYS TOTAL - ------------- ------ ------- ------- ---- ----- 1. Federal 2. State 3. Local 4. Other (See Below) 384,707 384,707 5. Total Taxes Payable 384,707 384,707 6. Accounts Payable 0
STATUS OF POST PETITION TAXES MONTH: June-02 ------------
BEGINNING TAX AMOUNT WITHHELD ENDING TAX FEDERAL LIABILITY* AND/OR ACCRUED (AMOUNT PAID) LIABILITY - ------- -------------- --------------- ------------- ----------- 1. Withholding ** 2. FICA - Employee ** 3. FICA - Employer ** 4. Unemployment 5. Income 6. Other (Attach List) 7. Total Federal Taxes STATE AND LOCAL 8. Withholding 9. Sales 10. Excise 11. Unemployment 12. Real Property (FOOTNOTE) 384,707 384,707 13. Personal Property 14. Other (Attach List) 15. Total State And Local 384,707 384,707 16. Total Taxes 384,707 384,707
* 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. --- --- CASE NAME: KEVCO DISTRIBUTION, LP ACCRUAL BASIS - 5 CASE NUMBER: 401-40789-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-02 -----------
BANK RECONCILIATIONS Account # 1 Account # 2 - -------------------- ------------- ------------- A. BANK: Other Accounts TOTAL B. ACCOUNT NUMBER: (Attach List) C. PURPOSE (TYPE): 1. Balance Per Bank Statement 2. Add: Total Deposits Not Credited 3. Subtract: Outstanding Checks 4. Other Reconciling Items 5. Month End Balance Per Books 0 6. Number of Last Check Written
INVESTMENT ACCOUNTS
DATE TYPE OF BANK, ACCOUNT NAME & NUMBER OF PURCHASE INSTRUMENT PURCHASE PRICE CURRENT VALUE - --------------------------- ----------- ---------- -------------- ------------- 7. 8. 9. 10. (Attach List) 11. Total Investments 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. --- --- CASE NAME: KEVCO DISTRIBUTION, LP ACCRUAL BASIS - 6 CASE NUMBER: 401-40789-BJH-11 MONTH: June-02 ------------- 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. Martin, Steve Payroll 99,229 2. Martin, Steve Exp. Reimb. 1,390 3. 4. 5. (Attach List) 6. Total Payments To Insiders 100,619
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
* 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 13,945,516 2. Leases Payable None 3. 4. 5. (Attach List) 6. TOTAL 13,945,516
This form does x does not have related footnotes on Footnotes Supplement. --- --- CASE NAME: KEVCO DISTRIBUTION, LP ACCRUAL BASIS - 7 CASE NUMBER: 401-40789-BJH-11 MONTH: JUNE-02 ------------- 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, Auto, General Liability Aon Risk Services 3/1/02-9/1/02 Semi-Annual $98,598 D&O Liability Great American Insurance 11/1/2001-10/31/2004 Annual $64,657
This form x does does not have related footnotes on Footnotes Supplement. --- --- CASE NAME: KEVCO DISTRIBUTION, LP FOOTNOTES SUPPLEMENT CASE NUMBER: 401-40789-BJH-11 ACCRUAL BASIS MONTH: June 30, 2002 ------------------
ACCRUAL BASIS FORM NUMBER LINE NUMBER FOOTNOTE / EXPLANATION - ------- ----------- ---------------------- 1 1 Pursuant to the February 12, 2001 Order (1) 3 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. 1 4 As of July 2001, the remaining accounts receivable 4 7 are for commissions earned for the sale of consigned inventory. Although collection is uncertain, Debtor will maintain these receivables on the balance sheet until such time as the likelihood of collection can be more accurately determined. 1 5, 12 The sale of Debtor's real property in Douglas, Georgia was finalized during May 2002. Proceeds from the sale have been placed in a segregated account (see the Supplement to Accrual Basis-3). Pursuant to Asset Purchase Agreements approved by the Court (see prior Monthly Operating Reports for details), Debtor has sold most of its assets. 1 22 The Debtor records on its books accruals for certain liabilities based on historical estimates. While 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." 1 15A Intercompany receivables/payables are from/to 1 27A co-debtors Kevco Management Co. (Case No. 7 3 401-40788-BJH-11), Kevco Manufacturing, LP (Case No. 401-40784-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). 1 18 Property tax owing is an accrual only and not yet 4 12 due. 1 24 The direct charges to equity are due to secured debt 1 32 reductions pursuant to sales of Kevco Manufacturing, LP's operating divisions, the asset sale of the South Region of Kevco Distribution, as well as direct cash payments. The secured debt owed to Bank of America by Kevco, Inc. (Case No. 401-40783-BJH) 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 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.
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