1
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
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FORT WORTH DIVISION
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MONTHLY OPERATING REPORT
MONTH ENDING: MARCH 31, 2001
--------------
IN ACCORDANCE WITH TITLE 28, SECTION 1746, OF THE UNITED STATES CODE, I DECLARE
UNDER PENALTY OF PERJURY THAT I HAVE EXAMINED THE FOLLOWING MONTHLY OPERATING
REPORT (ACCRUAL BASIS - 1 THROUGH ACCRUAL BASIS - 7) AND THE ACCOMPANYING
ATTACHMENTS AND, TO THE BEST OF MY KNOWLEDGE, THESE DOCUMENTS ARE TRUE, CORRECT
AND COMPLETE. DECLARATION OF THE PREPARER (OTHER THAN RESPONSIBLE PARTY): IS
BASED ON ALL INFORMATION OF WHICH PREPARER HAS ANY KNOWLEDGE.
RESPONSIBLE PARTY:
EXECUTIVE VICE PRESIDENT AND
/s/ JOSEPH P. TOMCZAK CHIEF FINANCIAL OFFICER
- ---------------------------------------- ------------------------------
Original Signature of Responsible Party Title
JOSEPH P. TOMCZAK APRIL 27, 2001
- ---------------------------------------- ------------------------------
Printed Name of Responsible Party Date
PREPARER:
/s/ DENNIS S. FAULKNER ACCOUNTANT FOR DEBTOR
- ---------------------------------------- ------------------------------
Original Signature of Preparer Title
DENNIS S. FAULKNER APRIL 27, 2001
- ---------------------------------------- ------------------------------
Printed Name of Preparer Date
2
CASE NAME: KEVCO, INC. ACCRUAL BASIS - 1
CASE NUMBER: 401-40783-BJH-11
COMPARATIVE BALANCE SHEET
SCHEDULED MONTH MONTH
ASSETS AMOUNT FEB-01 MAR-01 MONTH
- ------ --------- ------ ------ -----
1. Unrestricted Cash (FOOTNOTE) 1,000 1,000 1,000
2. Restricted Cash
3. Total Cash 1,000 1,000 1,000
4. Accounts Receivable (Net)
5. Inventory
6. Notes Receivable
7. Prepaid Expenses
8. Other (Attach List) 459,000 2,711,781 2,337,787
9. Total Current Assets 460,000 2,712,781 2,338,787
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 7,213,783 7,134,011
15. Other (Attach List) 613,299,110 308,668,443 310,687,331
16. Total Assets 618,549,181 318,595,007 320,160,129
POST PETITION LIABILITIES
17. Accounts Payable
18. Taxes Payable
19. Notes Payable
20. Professional Fees
21. Secured Debt
22. Other (Attach List) 14,750,196 15,846,661
23. Total Post Petition Liabilities 14,750,196 15,846,661
PRE PETITION LIABILITIES
24. Secured Debt (FOOTNOTE) 75,885,064 63,113,388 63,727,233
25. Priority Debt
26. Unsecured Debt
27. Other (Attach List) 136,505,780 141,833,049 141,833,049
28. Total Pre Petition Liabilities 212,390,844 204,946,437 205,560,282
29. Total Liabilities 212,390,844 219,696,633 221,406,943
EQUITY
30. Pre Petition Owners' Equity 406,158,337 406,158,337
31. Post Petition Cumulative Profit Or (Loss) 2,236,171 2,090,983
32. Direct Charges To Equity (Attach Explanation) (FOOTNOTE) (309,496,134) (309,496,134)
33. Total Equity 98,898,374 98,753,186
34. Total Liabilities and Equity 318,595,007 320,160,129
This form x does does not have related footnotes on Footnotes Supplement.
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3
CASE NAME: KEVCO, INC. SUPPLEMENT TO
CASE NUMBER: 401-40783-BJH-11 ACCRUAL BASIS - 1
COMPARATIVE BALANCE SHEET
SCHEDULED MONTH MONTH
ASSETS AMOUNT FEB-01 MAR-01 MONTH
- ------ --------- ------ ------ -----
A. Prepaid Escrowed Retention Pmts. 459,000 253,000 253,000
B. Federal Income Tax Asset (FOOTNOTE) 294,000
C. Other Taxes Receivable 165,677 85,683
D. Receivable from Adorn (FOOTNOTE) 1,999,104 1,999,104
E.
TOTAL OTHER ASSETS -- LINE 8 459,000 2,711,781 2,337,787
A. Capitalized loan costs 4,790,071 4,710,298 4,630,526
B. Investment in Subsidiaries 2,503,485 2,503,485
C.
D.
E.
TOTAL OTHER ASSETS NET OF AMORTIZATION -- LINE 14 4,790,071 7,213,783 7,134,011
A. Intercompany Receivables (FOOTNOTE) 306,649,555
B. Interco. Promissory Note (FOOTNOTE) 235,981,314 235,981,314 235,981,314
C. Interco. Royalties (FOOTNOTE) 70,668,241 72,687,129 74,706,017
D.
E.
TOTAL OTHER ASSETS -- LINE 15 613,299,110 308,668,443 310,687,331
POST PETITION LIABILITIES
A. Interco. Payables (FOOTNOTE) 13,774,763 13,698,642
B. Accrued Interest on Notes/Bonds 975,433 2,148,019
C.
D.
E.
TOTAL OTHER POST PETITION LIABILITIES -- LINE 22 14,750,196 15,846,661
PRE PETITION LIABILITIES
A. Interco. Liabilities (FOOTNOTE) 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
C. Senior Sub. Exchangeable Notes 23,500,000 23,500,000 23,500,000
D. Accrued Interest on Notes/Bonds 5,327,269 5,327,269
E.
TOTAL OTHER PRE PETITION LIABILITIES -- LINE 27 136,505,780 141,833,049 141,833,049
4
CASE NAME: KEVCO, INC. ACCRUAL BASIS - 2
CASE NUMBER: 401-40783-BJH-11
INCOME STATEMENT
MONTH MONTH QUARTER
REVENUES FEB-01 MAR-01 MONTH 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) 4,037,776 2,018,888 6,056,664
17. Non-Operating Expense (Att List) 294,000 294,000
18. Interest Expense 1,801,605 1,870,076 3,671,681
19. Depreciation/Depletion
20. Amortization
21. Other (Attach List)
22. Net Other Income & Expenses 2,236,171 (145,188) 2,090,983
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) 2,236,171 (145,188) 2,090,983
This form x does does not have related footnotes on Footnotes Supplement.
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CASE NAME: KEVCO, INC. SUPPLEMENT TO
CASE NUMBER: 401-40783-BJH-11 ACCRUAL BASIS - 2
INCOME STATEMENT
MONTH MONTH QUARTER
OPERATING EXPENSES FEB-01 MAR-01 MONTH TOTAL
- ------------------ ------ ------ ----- -------
A.
B.
C.
D.
E.
TOTAL OTHER OPERATING EXPENSES -- LINE 13
OTHER INCOME & EXPENSES
A. Interco. Interest Income (FOOTNOTE) 4,037,776 2,018,888 6,056,664
B.
C.
D.
E.
TOTAL NON-OPERATING INCOME -- LINE 16 4,037,776 2,018,888 6,056,664
A. Federal Income Tax (Footnote) 294,000 294,000
B.
C.
D.
E.
TOTAL NON-OPERATING EXPENSE -- LINE 17 294,000 294,000
REORGANIZATION EXPENSES
A.
B.
C.
D.
E.
TOTAL OTHER REORGANIZATION EXPENSES -- LINE 25
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CASE NAME: KEVCO, INC. ACCRUAL BASIS - 3
CASE NUMBER: 401-40783-BJH-11
CASH RECEIPTS AND MONTH MONTH QUARTER
DISBURSEMENTS FEB-01 MAR-01 MONTH 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.
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CASE NAME: KEVCO, INC. SUPPLEMENT TO
CASE NUMBER: 401-40783-BJH-11 ACCRUAL BASIS - 3
MARCH-01
-----------------
KEVCO KEVCO KEVCO KEVCO KEVCO KEVCO
DIST LP MFG.LP MGMT HOLDING COMPONENTS INC TOTAL
------- ------ ----- ------- ---------- ----- -----
1 CASH-BEGINNING OF MONTH 41,529 (55,996) 17,746,282 232 134 1,000 17,733,181
RECEIPTS FROM OPERATIONS
2 CASH SALES 274,302 -- 274,302
COLLECTION OF ACCOUNTS RECEIVABLE
3 PRE PETITION 1,120,290 367,383 1,487,673
4 POST PETITION 15,181,617 6,014,122 21,195,739
5 TOTAL OPERATING RECEIPTS 16,576,209 6,381,505 -- -- -- -- 22,957,714
NON OPERATING RECEIPTS
6 LOANS & ADVANCES -- --
7 SALE OF ASSETS 286 -- 286
8 OTHER -- -- -- -- 2,700 -- 2,700
SALE EXPENSE REIMBURSEMENT
ADP ADVANCE
MISC. 2,700
INTEREST INCOME
9 TOTAL NON OPERATING RECEIPTS 286 -- -- -- 2,700 -- 2,986
10 TOTAL RECEIPTS 16,576,495 6,381,505 -- -- 2,700 -- 22,960,700
11 CASH AVAILABLE 16,618,024 6,325,509 17,746,282 232 2,834 1,000 40,693,881
OPERATING DISBURSEMENTS
12 NET PAYROLL 2,105,173 1,038,694 250,403 3,394,270
13 PAYROLL TAXES PAID -- 1,538,108 221 221 1,538,550
14 SALES, USE & OTHER TAXES PAID 235 1,675 50 1,960
15 SECURED/RENTAL/LEASES 327,171 99,127 97,670 500 500 524,968
16 UTILITIES 119,696 124,447 344,565 38 38 588,784
17 INSURANCE 5,770 1,447 1,241,403 1,248,620
18 INVENTORY PURCHASES 3,246,839 2,943,026 6,189,865
19 VEHICLE EXPENSE 55,871 32,906 88,777
20 TRAVEL 17,371 11,694 512 29,577
21 ENTERTAINMENT 7,156 1,384 8,540
22 REPAIRS & MAINTENANCE 9,451 32,333 470 42,254
23 SUPPLIES 10,799 58,576 69,375
24 ADVERTISING -- -- --
25 OTHER 394,411 226,566 214,929 179 259 -- 836,344
FREIGHT 357,913 143,548 501,461
CONTRACT LABOR 1,602 7,601 63,360 72,563
401 K PAYMENTS -- 151,450 151,450
PAYROLL TAX ADVANCE ADP --
WAGE GARNISHMENTS --
MISC. 34,896 75,417 119 179 259 110,870
26 TOTAL OPERATING DISBURSEMENTS 6,299,943 4,571,875 3,688,060 988 1,018 -- 14,561,884
REORGANIZATION DISBURSEMENTS
27 PROFESSIONAL FEES -- --
28 US TRUSTEE FEES -- --
29 OTHER 10,316,598 1,848,876 (12,155,474) (5,766) (4,234) -- --
LOAN PAYMENTS -- --
INTERCOMPANY TRANSFERS 10,316,598 1,848,876 (12,155,474) (5,766) (4,234) --
30 TOTAL REORGANIZATION EXPENSE 10,316,598 1,848,876 (12,155,474) (5,766) (4,234) -- --
31 TOTAL DISBURSEMENTS 16,616,541 6,420,751 (8,467,414) (4,778) (3,216) -- 14,561,884
32 NET CASH FLOW (40,046) (39,246) 8,467,414 4,778 5,916 -- 8,398,816
---------- --------- ---------- ------ ------ ----- ----------
33 CASH-END OF MONTH 1,483 (95,242) 26,213,696 5,010 6,050 1,000 26,131,997
========== ========= ========== ====== ====== ===== ==========
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CASE NAME: KEVCO, INC. SUPPLEMENT TO
CASE NUMBER: 401-40783-BJH-11 ACCRUAL BASIS - 3
MARCH-01
-----------------
KEVCO KEVCO KEVCO KEVCO KEVCO KEVCO
DIST LP MFG.LP MGMT HOLDING COMPONENTS INC TOTAL
------- ------ ----- ------- ---------- --- -----
1 CASH-BEGINNING OF MONTH 41,529 (55,996) 17,746,282 232 134 1,000 17,733,181
RECEIPTS FROM OPERATIONS
2 CASH SALES 274,302 -- 274,302
COLLECTION OF ACCOUNTS RECEIVABLE
3 PRE PETITION 1,120,290 367,383 1,487,673
4 POST PETITION 15,181,617 6,014,122 21,195,739
5 TOTAL OPERATING RECEIPTS 16,576,209 6,381,505 -- -- -- -- 22,957,714
NON OPERATING RECEIPTS
6 LOANS & ADVANCES -- --
7 SALE OF ASSETS 286 -- 286
8 OTHER -- -- -- -- 2,700 -- 2,700
SALE EXPENSE REIMBURSEMENT
ADP ADVANCE
MISC. 2,700
INTEREST INCOME
9 TOTAL NON OPERATING RECEIPTS 286 -- -- -- 2,700 -- 2,986
10 TOTAL RECEIPTS 16,576,495 6,381,505 -- -- 2,700 -- 22,960,700
11 CASH AVAILABLE 16,618,024 6,325,509 17,746,282 232 2,834 1,000 40,693,881
OPERATING DISBURSEMENTS
12 NET PAYROLL 2,105,173 1,038,694 250,403 3,394,270
13 PAYROLL TAXES PAID -- 1,538,108 221 221 1,538,550
14 SALES, USE & OTHER TAXES PAID 235 1,675 50 1,960
15 SECURED/RENTAL/LEASES 327,171 99,127 97,670 500 500 524,968
16 UTILITIES 119,696 124,447 344,565 38 38 588,784
17 INSURANCE 5,770 1,447 1,241,403 1,248,620
18 INVENTORY PURCHASES 3,246,839 2,943,026 6,189,865
19 VEHICLE EXPENSE 55,871 32,906 88,777
20 TRAVEL 17,371 11,694 512 29,577
21 ENTERTAINMENT 7,156 1,384 8,540
22 REPAIRS & MAINTENANCE 9,451 32,333 470 42,254
23 SUPPLIES 10,799 58,576 69,375
24 ADVERTISING -- -- --
25 OTHER 394,411 226,566 214,929 179 259 -- 836,344
FREIGHT 357,913 143,548 501,461
CONTRACT LABOR 1,602 7,601 63,360 72,563
401 K PAYMENTS -- 151,450 151,450
PAYROLL TAX ADVANCE ADP --
WAGE GARNISHMENTS --
MISC. 34,896 75,417 119 179 259 110,870
26 TOTAL OPERATING DISBURSEMENTS 6,299,943 4,571,875 3,688,060 988 1,018 -- 14,561,884
REORGANIZATION DISBURSEMENTS
27 PROFESSIONAL FEES -- --
28 US TRUSTEE FEES -- --
29 OTHER: Intercompany Transfers 10,317,081 1,848,876 (12,155,957) (5,766) (4,234) -- --
LOAN PAYMENTS -- --
INTERCOMPANY TRANSFERS 10,317,081 1,848,876 (12,155,957) (5,766) (4,234) --
--
30 TOTAL REORGANIZATION EXPENSE 10,317,081 1,848,876 (12,155,957) (5,766) (4,234) -- --
31 TOTAL DISBURSEMENTS 16,617,024 6,420,751 (8,467,897) (4,778) (3,216) -- 14,561,884
32 NET CASH FLOW (40,529) (39,246) 8,467,897 4,778 5,916 -- 8,398,816
---------- --------- ---------- ------ ------ ----- ----------
33 CASH-END OF MONTH 1,000 (95,242) 26,214,179 5,010 6,050 1,000 26,131,997
========== ========= ========== ====== ====== ===== ==========
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CASE NAME: KEVCO, INC. ACCRUAL BASIS - 4
CASE NUMBER: 401-40783-BJH-11
SCHEDULED MONTH MONTH
ACCOUNTS RECEIVABLE AGING AMOUNT FEB-01 MAR-01 MONTH
- ------------------------- --------- ------ ------ -----
1. 0 - 30
2. 31 - 60
3. 61 - 90
4. 91 +
5. Total Accounts Receivable
6. (Amount Considered Uncollectible)
7. Accounts Receivable (Net)
AGING OF POST PETITION MONTH: MARCH-01
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
6. Accounts Payable
MONTH: MARCH-01
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
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
16. Total Taxes
* 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.
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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: MARCH-01
------------
BANK RECONCILIATIONS Account # 1 Account # 2 Other Accounts
- -------------------- ----------- ----------- --------------
A. BANK: Bank of America (Attach List)
B. ACCOUNT NUMBER: 3750768521 TOTAL
C. PURPOSE (TYPE): Checking
1. Balance Per Bank Statement 1,000 1,000
2. Add: Total Deposits Not Credited
3. Subtract: Outstanding Checks
4. Other Reconciling Items
5. Month End Balance Per Books 1,000 1,000
6. Number of Last Check Written
INVESTMENT ACCOUNTS
DATE OF TYPE OF
BANK, ACCOUNT NAME & NUMBER PURCHASE INSTRUMENT PURCHASE PRICE CURRENT VALUE
- --------------------------- -------- ---------- -------------- -------------
7.
8.
9.
10. (Attach List)
11. Total Investments
CASH
12. Currency On Hand
13. Total Cash - End of Month 1,000
This form does X does not have related footnotes on Footnotes Supplement.
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11
CASE NAME: KEVCO, INC. ACCRUAL BASIS - 6
CASE NUMBER: 401-40783-BJH-11
MONTH: MARCH-01
------------------
PAYMENTS TO INSIDERS AND PROFESSIONALS
Of the Total Disbursements shown for the month, list the amount paid to Insiders
(as defined in Section 101 (31) (A) - (F) of the U.S. Bankruptcy Code) and to
Professionals. Also, for payments to Insiders, identify the type of compensation
paid (e.g. salary, bonus, commissions, insurance, housing allowance, travel, car
allowance, etc.). Attach additional sheets if necessary.
INSIDERS
TYPE OF AMOUNT TOTAL PAID
NAME PAYMENT PAID TO DATE
---- ------- ------ ----------
1.
2.
3.
4.
5. (Attach List)
6. Total Payments To Insiders
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 (FOOTNOTE) 63,727,233
2.
3.
4.
5. (Attach List)
6. TOTAL 63,727,233
This form x does does not have related footnotes on Footnotes Supplement.
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12
CASE NAME: KEVCO, INC. ACCRUAL BASIS - 7
CASE NUMBER: 401-40783-BJH-11
MONTH: MARCH-01
QUESTIONNAIRE ------------
YES NO
--- --
1. Have any Assets been sold or transferred outside the normal course of business this reporting period? x
2. Have any funds been disbursed from any account other than a debtor in possession account? x
3. Are any Post Petition Receivables (accounts, notes, or loans) due from related parties? x
4. Have any payments been made on Pre Petition Liabilities this reporting period? x
5. Have any Post Petition Loans been received by the debtor from any party? x
6. Are any Post Petition Payroll Taxes past due? x
7. Are any Post Petition State or Federal Income Taxes past due? x
8. Are any Post Petition Real Estate Taxes past due? x
9. Are any other Post Petition Taxes past due? x
10. Are any amounts owed to Post Petition creditors delinquent? x
11. Have any Pre Petition Taxes been paid during the reporting period? x
12. Are any wage payments past due? x
If the answer to any of the above questions is "Yes", provide a detailed
explanation of each item. Attach additional sheets if necessary.
SEE FOOTNOTE
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
FREQUENCY
AMOUNT &
TYPE OF POLICY CARRIER PERIOD COVERED PAYMENT
-------------- ------- -------------- -------------------------
General Liability Liberty Mutual 9/1/00-9/1/01 Annual $313,520
Umbrella National Union 6/1/00-9/1/01 Annual $103,349
This form X does does not have related footnotes on Footnotes Supplement.
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13
CASE NAME: KEVCO, INC. FOOTNOTES SUPPLEMENT
CASE NUMBER: 401-40783-BJH-11 ACCRUAL BASIS
MONTH: MARCH-01
------------
ACCRUAL BASIS LINE
FORM NUMBER NUMBER FOOTNOTE/EXPLANATION
----------- ------ --------------------
1 1 Pursuant to the February 12, 2001 Order (1) Authorizing
3 1 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 are reported in Kevco
Management's Monthly Operating Report. Debtor does
maintain a small petty cash account.
1 8B The Federal Tax asset on Kevco, Inc.'s books and records
2 17A has been expensed (written off). The tax asset, created in
accordance with Generally Accepted Accounting Principles,
has no monetary value at this time or in the foreseeable
future.
1 8D Pursuant to an Asset Purchase Agreement approved by the
1 24 Court on February 23, 2001 and effective as of the same
6 1 date among Kevco, Inc., Kevco Manufacturing, LP, Wingate
Management Co. II, LP and Adorn LLC, certain assets and
liabilities of Design Components, a division of Kevco
Manufacturing, LP (Case No. 401-40784-BJH-11), were
transferred to Adorn, LLC. At the effective date of
purchase, Buyer assumed certain executory contracts,
approximately $1.6 million of Kevco Manufacturing, LP's
unsecured pre-petition liabilities, $3.5 million of
accounts receivable, $5 million of inventory and $2.2
million (book value) of property and equipment. Payment
was made directly to Bank of America, the secured lender,
thereby reducing pre-petition secured debt. The secured
debt owed to Bank of America has been guaranteed by all of
Kevco, Inc.'s co-debtors.
1 15A Intercompany assets were inadvertently doubled on Debtor's
1 32 Schedules. The adjustment to equity corrects the error.
1 15B,C Intercompany receivables/payables are from/to co-debtors
1 22A Kevco Management Co. (Case No. 401-40788-BJH-11), Kevco
1 27A Distribution, LP (Case No. 401-40789-BJH-11), Kevco
2 16A Holding, Inc. (Case No. 401-40785-BJH-11), DCM Delaware,
7 3 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 Manufacturing, LP. (Case No.
401-40784-BJH-11).
1 21 Post-petition secured debt is the interest accrual for the
Bank of America debt guaranteed by all of Kevco, Inc.'s
co-debtors (see footnote MOR 1, 15B,C). Although the
interest accrual is included only in Kevco, Inc.'s books
and records.