1
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: 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:
/s/ JOSEPH P. TOMCZAK TREASURER
- --------------------------------------- ---------------------
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 GP, INC. ACCRUAL BASIS - 1
CASE NUMBER: 401-40786-BJH-11
COMPARATIVE BALANCE SHEET
SCHEDULED MONTH MONTH
ASSETS AMOUNT FEB-01 MAR-01 MONTH
- ------ --------- ------ ------ -----
1. Unrestricted Cash 0
2. Restricted Cash 0
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 0
16. Total Assets 360,837 360,837 360,837 0
POST PETITION LIABILITIES
17. Accounts Payable
18. Taxes Payable
19. Notes Payable
20. Professional Fees
21. Secured Debt
22. Other (Attach List) 0 0 0
23. Total Post Petition Liabilities 0 0 0
PRE PETITION LIABILITIES
24. Secured Debt (FOOTNOTE) 75,885,064 63,113,388 63,113,388
25. Priority Debt 0
26. Unsecured Debt
27. Other (Attach List) 128,815,071 128,815,071 128,815,071 0
28. Total Pre Petition Liabilities 204,700,135 191,928,459 191,928,459 0
29. Total Liabilities 204,700,135 191,928,459 191,928,459 0
EQUITY
30. Pre Petition Owners' Equity (204,339,298) (204,339,298)
31. Post Petition Cumulative Profit Or
(Loss) 0 0
32. Direct Charges To Equity (Attach
Explanation)(Footnote) 12,771,676 12,771,676
33. Total Equity (191,567,622) (191,567,622) 0
34. Total Liabilities and Equity 360,837 360,837 0
This form X does does not have related footnotes on Footnotes Supplement.
--- ---
3
CASE NAME: KEVCO GP, INC. SUPPLEMENT TO
CASE NUMBER: 401-40786-BJH-11 ACCRUAL BASIS - 1
COMPARATIVE BALANCE SHEET
SCHEDULED MONTH MONTH
ASSETS AMOUNT FEB-01 MAR-01 MONTH
- ------ --------- ------ ------ -----
A.
B.
C.
D.
E.
TOTAL OTHER ASSETS - LINE 8 0 0 0 0
A.
B.
C.
D.
E.
TOTAL OTHER ASSETS NET OF
AMORTIZATION - LINE 14 0 0 0 0
A. Investment in Subsidiaries 360,837 360,837 360,837
B.
C.
D.
E.
TOTAL OTHER ASSETS - LINE 15 360,837 360,837 360,837 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) 315,071 315,071 315,071
B. 10 3/8% Senior Sub. Notes 105,000,000 105,000,000 105,000,000
C. Sr. Sub. Exchangeable Notes 23,500,000 23,500,000 23,500,000
D.
E.
TOTAL OTHER PRE PETITION
LIABILITIES - LINE 27 128,815,071 128,815,071 128,815,071 0
4
CASE NAME: KEVCO GP, INC. ACCRUAL BASIS - 2
CASE NUMBER: 401-40786-BJH-11
INCOME STATEMENT
MONTH MONTH QUARTER
REVENUES FEB-01 MAR-01 MONTH TOTAL
- -------- ------ ------ ----- -------
1. Gross Revenues 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 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 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
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 0 0 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.
--- ---
5
CASE NAME: KEVCO GP, INC. ACCRUAL BASIS - 3
CASE NUMBER: 401-40786-BJH-11
CASH RECEIPTS AND MONTH MONTH QUARTER
DISBURSEMENTS FEB-01 MAR-01 MONTH TOTAL
- ----------------- ------ ------ ----- -------
1. Cash - Beginning Of Month 0
RECEIPTS FROM OPERATIONS
2. Cash Sales 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 0 0 0
7. Sale of Assets 0
8. Other (Attach List) 0 0 0 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.
--- ---
6
CASE NAME: KEVCO GP, INC. ACCRUAL BASIS - 4
CASE NUMBER: 401-40786-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 0 0 0 0
6. (Amount Considered Uncollectible)
7. Accounts Receivable (Net) 0 0 0 0
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 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: MARCH-01
---------------------------------
STATUS OF POST PETITION TAXES
AMOUNT
BEGINNING TAX WITHHELD AND/OR ENDING TAX
FEDERAL LIABILITY * 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.
--- ---
7
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: MARCH-01
---------------------------------
BANK RECONCILIATIONS Account # 1 Account # 2
- -------------------- ----------- -----------
A. BANK: Other Accounts
B. ACCOUNT NUMBER: (Attach List) TOTAL
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 OF TYPE OF
BANK, ACCOUNT NAME & NUMBER 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.
--- ---
8
CASE NAME: KEVCO GP, INC. ACCRUAL BASIS - 6
CASE NUMBER: 401-40786-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) 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.
2.
3.
4.
5. (Attach List) 0 0 0
6. TOTAL 0 0 0
This form does x does not have related footnotes on Footnotes Supplement.
--- ---
9
CASE NAME: KEVCO GP, INC. ACCRUAL BASIS - 7
CASE NUMBER: 401-40786-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.
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
PAYMENT AMOUNT
TYPE OF POLICY CARRIER PERIOD COVERED & FREQUENCY
-------------- ------- -------------- --------------
General Liability Liberty Mutual 9/1/00-9/1/01 Annual $313,520
Umbrella National Union 6/1/00-9/1/01 Annual $103,349
This form X does does not have related footnotes on Footnotes Supplement.
--- ---
10
CASE NAME: KEVCO GP, INC. FOOTNOTES SUPPLEMENT
CASE NUMBER: 401-40786-BJH-11 ACCRUAL BASIS
MONTH: MARCH-01
---------------------------------
ACCRUAL BASIS LINE
FORM NUMBER NUMBER FOOTNOTE / EXPLANATION
- ------------- ------ ----------------------
1 24 Pursuant to an Asset Purchase Agreement approved by the Court on
February 23, 2001 and effective as of the same date among Kevco,
Inc., Kevco Manufacturing, LP, Wingate Management Co. II, LP and
Adorn LLC, certain assets and liabilities of Design Components, a
division of Kevco Manufacturing, LP (Case No. 401-40784-BJH-11), were
transferred to Adorn, LLC. At the effective date of purchase, Buyer
assumed certain executory contracts, approximately $1.6 million of
Kevco Manufacturing, LP's unsecured pre-petition liabilities, $3.5
million of accounts receivable, $5 million of inventory and $2.2
million (book value) of property and equipment. Payment was made
directly to Bank of America, the secured lender, thereby reducing
pre-petition secured debt.
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).
1 32 The direct charge to equity is due to the secured debt reduction
pursuant to the sale of Design Components (See Footnote 1-24). The
secured debt owed to Bank of America by Kevco, Inc. (Case No.
401-40783-BJH-11) has been guaranteed by all of its co-debtors (See
Footnote 1,27A); therefore, the secured debt is reflected as a
liability on all of the Kevco entities. The charge to equity is
simply an adjustment to the balance sheet. Kevco, Inc.'s report will
reflect the cash portion of the transaction.