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).