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.