1
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: APRIL 30, 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 MAY 29, 2001
- --------------------------------------- ------------------------------
Printed Name of Responsible Party Date
PREPARER:
/s/ DENNIS S. FAULKNER ACCOUNTANT FOR DEBTOR
- --------------------------------------- ------------------------------
Original Signature of Preparer Title
DENNIS S. FAULKNER MAY 29, 2001
- --------------------------------------- ------------------------------
Printed Name of Preparer Date
2
CASE NAME: KEVCO MANAGEMENT, INC. ACCRUAL BASIS - 1
CASE NUMBER: 401-40788-BJH-11
COMPARATIVE BALANCE SHEET
SCHEDULED MONTH MONTH MONTH
ASSETS AMOUNT FEB-01 MAR-01 APR-01
- ------ --------- ---------- ---------- ---------
1. Unrestricted Cash (FOOTNOTE) 6,557,974 17,746,282 26,213,696 15,894,069
2. Restricted Cash
3. Total Cash 6,557,974 17,746,282 26,213,696 15,894,069
4. Accounts Receivable (Net)
5. Inventory
6. Notes Receivable
7. Prepaid Expenses (FOOTNOTE) 3,450,681 2,824,027 1,920,893 1,994,525
8. Other (Attach List) 263,606 269,703 269,703 117,209
9. Total Current Assets 10,272,261 20,840,012 28,404,292 18,005,803
10. Property, Plant & Equipment 3,285,885 3,285,886 3,248,949 3,243,080
11. Less: Accumulated Depreciation/Depletion (1,753,163) (1,805,114) (1,836,750) (1,884,378)
12. Net Property, Plant & Equipment 1,532,722 1,480,772 1,412,199 1,358,702
13. Due From Insiders
14. Other Assets - Net of Amortization (Attach List) 36,082 36,001 35,921 35,841
15. Other (Attach List) 153,399,371 119,191,133 119,290,012 142,088,255
16. Total Assets 165,240,436 141,547,918 149,142,424 161,488,601
POST PETITION LIABILITIES
17. Accounts Payable 301,078 355,015 285,864
18. Taxes Payable 6,359 7,414 8,469
19. Notes Payable
20. Professional Fees
21. Secured Debt
22. Other (Attach List) (FOOTNOTE) 4,650,723 3,685,786 4,044,340
23. Total Post Petition Liabilities 4,958,159 4,048,215 4,338,673
PRE PETITION LIABILITIES
24. Secured Debt (FOOTNOTE) 75,885,064 63,113,388 63,113,388 41,900,067
25. Priority Debt (FOOTNOTE) 200,832 91,281 91,281 91,281
26. Unsecured Debt 1,779,701 2,486,489 1,421,970 1,465,072
27. Other (Attach List) 242,243,558 256,778,148 267,034,923 280,463,959
28. Total Pre Petition Liabilities 320,109,155 322,469,306 331,661,562 323,920,379
29. Total Liabilities 320,109,155 327,427,466 335,709,777 328,259,052
EQUITY
30. Pre Petition Owners' Equity (154,868,719) (154,868,719) (154,868,719)
31. Post Petition Cumulative Profit Or (Loss) (367,705) (1,055,510) (2,113,462)
32. Direct Charges To Equity (Attach Explanation FOOTNOTE) (30,643,124) (30,643,124) (9,788,270)
33. Total Equity (185,879,548) (186,567,353) (166,770,452)
34. Total Liabilities and Equity 141,547,918 149,142,424 161,488,600
This form x does does not have related footnotes on Footnotes Supplement.
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3
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 FEB-01 MAR-01 APR-01
- ------ --------- ------ ------ ------
A. Security Deposit 8,794 8,794 8,794 8,794
B. Cash Surrender Value: Life Ins. 254,812 260,909 260,909 108,415
C.
D.
E.
TOTAL OTHER ASSETS - LINE 8 263,606 269,703 269,703 117,209
A. Organizational Costs 36,082 36,001 35,921 35,841
B.
C.
D.
E.
TOTAL OTHER ASSETS NET OF AMORTIZATION - LINE 14 36,082 36,001 35,921 35,841
A. Intercompany Receivables (FOOTNOTE) 113,743,558 79,377,508 79,318,574 102,116,817
B. Intercompany Royalties 39,655,813 39,813,625 39,971,438 39,971,438
C.
D.
E.
TOTAL OTHER ASSETS - LINE 15 153,399,371 119,191,133 119,290,012 142,088,255
POST PETITION LIABILITIES
A. Accrued Liabilities Other 1,053,230 512,018 1,047,301
B. Deferred Compensation 960,371 960,371 960,371
C. 401K Contribution 32,932 31,321 13,274
D. Accrued Health Claims 1,300,036 991,237 874,190
E. Accrued Payroll 1,125,642 1,062,327 1,020,692
F. Acc. Professional Fees 178,512 128,512 128,512
G.
TOTAL OTHER POST PETITION LIABILITIES - LINE 22 4,650,723 3,685,786 4,044,340
PRE PETITION LIABILITIES
A. Intercompany Payables (FOOTNOTE) 113,743,558 128,278,148 138,534,923 151,963,959
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 27 242,243,558 256,778,148 267,034,923 280,463,959
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CASE NAME: KEVCO MANAGEMENT, INC. ACCRUAL BASIS - 2
CASE NUMBER: 401-40788-BJH-11
INCOME STATEMENT
MONTH MONTH MONTH QUARTER
REVENUES FEB-01 MAR-01 APR-01 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 45,063 45,028 71,400 161,491
10. Selling & Marketing 16,372 5,132 (161) 21,343
11. General & Administrative 120,177 190,404 178,094 488,675
12. Rent & Lease 38,622 50,028 48,590 137,240
13. Other (Attach List) 248,419 370,113 167,245 785,777
14. Total Operating Expenses 468,653 660,705 465,168 1,594,526
15. Income Before Non-Operating
Income & Expense (468,653) (660,705) (465,168) (1,594,526)
OTHER INCOME & EXPENSES
16. Non-Operating Income (Att List) 789,394 682,857 118,278 1,590,529
17. Non-Operating Expense (Att List) 0 0 217,203 217,203
18. Interest Expense 0
19. Depreciation / Depletion 52,032 53,879 50,926 156,837
20. Amortization 0 0
21. Other (Attach List) 0
22. Net Other Income & Expenses 737,362 628,978 (149,851) 1,216,489
REORGANIZATION EXPENSES
23. Professional Fees 636,414 656,079 442,932 1,735,425
24. U.S. Trustee Fees 0
25. Other (Attach List) 0
26. Total Reorganization Expenses 636,414 656,079 442,932 1,735,425
27. Income Tax 0
28. Net Profit (Loss) (367,705) (687,806) (1,057,951) (2,113,462)
This form does x does not have related footnotes on Footnotes Supplement.
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5
CASE NAME: KEVCO MANAGEMENT, INC. SUPPLEMENT TO
CASE NUMBER: 401-40788-BJH-11 ACCRUAL BASIS - 2
INCOME STATEMENT
MONTH MONTH MONTH QUARTER
OPERATING EXPENSES FEB-01 MAR-01 APR-01 TOTAL
- ------------------ ------- ------- ------ ------
A. Payroll 187,266 248,360 71,367 506,994
B. Insurance 27,207 28,059 25,043 80,309
C. Utilities & Telephone 12,780 31,434 15,650 59,864
D. Taxes 21,166 62,259 10,941 94,366
E. Management Fees 44,244 44,244
TOTAL OTHER OPERATING EXPENSES - LINE 13 248,419 370,113 167,245 785,777
OTHER INCOME & EXPENSES
A. Interest and Misc. Income 3,904 112,980 95,364 212,248
B. Intercompany Operating Fees 380,423 112,675 22,914 516,012
C. Interco. Management Fees 315,625 157,813 473,438
D. Intercompany Information Technology Fee 89,442 3,080 92,522
E. Write off uncleared AP checks 296,309 296,309
TOTAL NON-OPERATING INCOME - LINE 16 789,394 682,857 118,278 1,590,529
A. Correction of Error on Books (FOOTNOTE) 217,203 217,203
B. 0
C. 0
D. 0
E. 0
TOTAL NON-OPERATING EXPENSE - LINE 17 0 0 217,203 217,203
REORGANIZATION EXPENSES
A. 0
B. 0
C. 0
D. 0
E. 0
TOTAL OTHER
REORGANIZATION EXPENSES -
LINE 25 0 0 0 0
6
CASE NAME: KEVCO MANAGEMENT, INC. ACCRUAL BASIS - 3
CASE NUMBER: 401-40788-BJH-11
CASH RECEIPTS AND MONTH MONTH MONTH QUARTER
DISBURSEMENTS FEB-01 MAR-01 APR-01 TOTAL
- ------------- ------ ------ ------ ------
1. Cash - Beginning Of Month SEE ATTACHED SUPPLEMENT AND FOOTNOTE
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 x does does not have related footnotes on Footnotes Supplement.
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CASE NAME: KEVCO MANAGEMENT, INC. SUPPLEMENT TO ACCRUAL BASIS -3
APRIL, 2001
CASE NUMBER: 401-40788-BJH-11 CASH RECEIPTS AND DISBURSEMENTS
DIST LP MFG MGMT HOLDING COMP KEVCO INC TOTAL
--------- ---------- ---------- ------- ----- --------- ----------
1 CASH-BEGINNING OF MONTH 1,483 (95,242) 26,213,696 5,010 6,050 1,000 26,131,997
RECEIPTS FROM OPERATIONS
2 CASH SALES 121,372 -- 121,372
COLLECTION OF ACCOUNTS RECEIVABLE
3 PRE PETITION 61,354 -- 61,354
4 POST PETITION 7,225,297 4,705,194 11,930,491
5 TOTAL OPERATING RECEIPTS 7,408,023 4,705,194 -- -- -- -- 12,113,217
NON OPERATING RECEIPTS
6 LOANS & ADVANCES -- --
7 SALE OF ASSETS 38,500 7,012,936 7,051,436
8 OTHER 171,186 -- 87,708 -- -- -- 258,894
INTERCOMPANY TRANSFERS (4,591,461) (2,381,789) 6,973,250 -- -- --
SALE EXPENSE REIMBURSEMENT
LIFE INSURANCE CASH VALUE 152,493
RENT 16,000
TAX REFUND 2,693
MISC --
INTEREST INCOME 87,708
9 TOTAL NON OPERATING RECEIPTS (4,381,775) 4,631,147 7,060,958 -- -- -- 7,310,330
10 TOTAL RECEIPTS 3,026,248 9,336,341 7,060,958 -- -- -- 19,423,547
11 CASH AVAILABLE 3,027,731 9,241,099 33,274,654 5,010 6,050 1,000 45,555,544
OPERATING DISBURSEMENTS
12 NET PAYROLL 500,771 560,149 112,437 1,173,357
13 PAYROLL TAXES PAID -- 524,486 524,486
14 SALES, USE & OTHER TAXES PAID 9,429 770 10,199
15 SECURED/RENTAL/LEASES 496,959 130,335 71,718 699,012
16 UTILITIES 100,185 88,360 211,235 399,780
17 INSURANCE 6,099 -- 597,388 603,487
18 INVENTORY PURCHASES 1,269,266 1,178,079 2,447,345
19 VEHICLE EXPENSE 64,627 10,109 74,736
20 TRAVEL 21,689 12,853 643 35,185
21 ENTERTAINMENT -- 369 369
22 REPAIRS & MAINTENANCE 2,617 19,292 2,790 24,699
23 SUPPLIES 9,375 40,685 50,060
24 ADVERTISING -- -- --
25 OTHER 546,714 7,266,715 15,367,241 -- -- -- 23,180,670
LOAN PAYMENTS 324,609 7,012,936 15,000,000 22,337,545
FREIGHT 97,953 152,540 250,493
CONTRACT LABOR 617 1,976 31,937 34,530
401K PAYMENTS -- 157,719 157,719
PAYROLL TAX ADVANCE ADP --
WAGE GARNISHMENTS --
MISC. 123,535 99,263 177,585 400,383
26 TOTAL OPERATING DISBURSEMENTS 3,027,731 9,307,716 16,887,938 -- -- -- 29,223,385
REORGANIZATION DISBURSEMENTS
27 PROFESSIONAL FEES -- 492,647 492,647
28 US TRUSTEE FEES -- --
29 OTHER --
30 TOTAL REORGANIZATION EXPENSE -- -- 492,647 -- -- -- 492,647
31 TOTAL DISBURSEMENTS 3,027,731 9,307,716 17,380,585 -- -- -- 29,716,032
32 NET CASH FLOW (1,483) 28,625 (10,319,627) -- -- -- (10,292,485)
33 CASH - END OF MONTH -- (66,617) 15,894,069 5,010 6,050 1,000 15,839,512
8
CASE NAME: KEVCO MANAGEMENT, INC. ACCRUAL BASIS - 4
CASE NUMBER: 401-40788-BJH-11
SCHEDULED MONTH MONTH MONTH
ACCOUNTS RECEIVABLE AGING AMOUNT FEB-01 MAR-01 APR-01
- ------------------------- ------- ------ ------ ------
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: April-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 (See below) 1,055 7,414 8,469
5. Total Taxes Payable 1,055 7,414 0 0 8,469
6. Accounts Payable 59,887 878 225,099 285,864
STATUS OF POST PETITION TAXES MONTH: April-01
-------------
BEGINNING TAX AMOUNT WITHHELD ENDING TAX
FEDERAL LIABILITY* AND/OR ACCRUED (AMOUNT PAID) LIABILITY
- ------- ------------- --------------- ------------- ---------
1. Withholding** 26,660 (26,660) 0
2. FICA - Employee** 12,006 (12,006) 0
3. FICA - Employer** 12,006 (12,006) 0
4. Unemployment 30 (30) 0
5. Income 0 0
6. Other (Attach List) 0
7. Total Federal Taxes 0 50,702 (50,702) 0
STATE AND LOCAL
8. Withholding 168 (168) 0
9. Sales (FOOTNOTE) 6,412 0 6,412
10. Excise 0 0
11. Unemployment 207 (207) 0
12. Real Property (FOOTNOTE) 1,002 1,055 0 2,057
13. Personal Property 0 0
14. Other (Attach List) 0 0
15. Total State And Local 7,414 1,430 (375) 8,469
16. Total Taxes 7,414 52,132 (51,077) 8,469
* 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.
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9
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: APRIL-01
-------------
BANK RECONCILIATIONS Account # 1 Account # 2
- -------------------- ----------------- ----------------
A. BANK: Bank of America Bank of America Other Accounts
B. ACCOUNT NUMBER: 1295026976 3751629012 (Attach List) TOTAL
C. PURPOSE (TYPE): Operating Account DIP Disbursement
Account
1. Balance Per Bank Statement 1,195,547 661,051 14,841,836 16,698,434
2. Add: Total Deposits Not Credited 0 0
3. Subtract: Outstanding Checks (638,265) (146,578) (784,843)
4. Other Reconciling Items 47,032 (67,554) (20,522)
5. Month End Balance Per Books 604,314 661,051 14,627,704 15,893,069
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 1,000
13. Total Cash - End of Month (Footnote) 15,894,069
This form x does does not have related footnotes on Footnotes Supplement.
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10
CASE NAME: KEVCO MANAGEMENT, INC. SUPPLEMENT TO
CASE NUMBER: 401-40788-BJH-11 ACCRUAL BASIS - 5
MONTH: APRIL-01
-------------
BANK RECONCILIATIONS Account # 3 Account # 4 Account # 5
- -------------------- ----------- ----------- -----------
A. BANK: Bank of America/ Nations Funds Bank of America TOTAL
B. ACCOUNT NUMBER: 846713 3751775241 OTHER BANK
C. PURPOSE (TYPE): Kevco, Inc. S-T ACCOUNTS
Investment Stay Pay
1. Balance Per Bank Statement 13,692,684 984,081 14,676,765
2. Add: Total Deposits Not Credited 0
3. Subtract: Outstanding Checks 0
4. Other Reconciling Items 0
5. Month End Balance Per Books 13,692,684 984,081 14,676,765
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
- --------------------------- -------- ---------- -------------- -------------
A.
B.
C.
D.
TOTAL OTHER INVESTMENT ACCOUNTS - LINE 10 0 0
11
CASE NAME: KEVCO MANAGEMENT, INC. 2ND SUPPLEMENT TO
CASE NUMBER: 401-40788-BJH-11 ACCRUAL BASIS - 5
MONTH: APRIL-01
-------------
BANK RECONCILIATIONS Account # 6 Account # 7 Account # 8
- -------------------- --------------- --------------- ----------------
A. BANK: Bank of America Bank of America Bank of America TOTAL
B. ACCOUNT NUMBER: 1295027040 3750768628 3750801912 OTHER BANK
C. PURPOSE (TYPE): Payroll-Dist Payroll-MFG Payroll-Mgmt ACCOUNTS
1. Balance Per Bank Statement 72,183 69,958 22,930 165,071
2. Add: Total Deposits Not Credited 0
3. Subtract: Outstanding Checks (146,578) (146,578)
4. Other Reconciling Items (67,554) (67,554)
5. Month End Balance Per Books (141,949) 69,958 22,930 (49,061)
6. Number of Last Check Written N/A N/A N/A
INVESTMENT ACCOUNTS
DATE OF TYPE OF
BANK, ACCOUNT NAME & NUMBER PURCHASE INSTRUMENT PURCHASE PRICE CURRENT VALUE
- --------------------------- -------- ---------- -------------- -------------
A.
B.
C.
D.
TOTAL OTHER INVESTMENT ACCOUNTS - LINE 10 0 0
12
CASE NAME: KEVCO MANAGEMENT, INC. ACCRUAL BASIS - 6
CASE NUMBER: 401-40788-BJH-11
MONTH: APRIL-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. Sharon Romere Expense Reimb. 0 240
2. Joe Tomczak Expense Reimb. 110 371
3. John Wittig Expense Reimb. 0 263
4. Sharon Romere Payroll 8,077 21,923
5. Joe Tomczak Payroll 20,192 54,808
6. John Wittig Payroll 14,135 37,692
7. Will Simpson Payroll 9,886 27,194
Other (see attached) 19,000 19,000
8. Total Payments To Insiders 71,400 142,491
PROFESSIONALS
DATE OF
COURT ORDER TOTAL
AUTHORIZING AMOUNT AMOUNT TOTAL PAID INCURRED
NAME PAYMENT APPROVED PAID TO DATE & UNPAID*
---- ---------- -------- ------- ---------- ---------
1. Haynes and Boone 03/20/01 492,647 492,647 492,647 361,375
2. Lain, Faulkner & Co., P.C. 03/20/01 0 0 0 173,349
3.
4.
5. (Attach List)
6. Total Payments To Professionals 492,647 492,647 492,647 534,724
* 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
PAYMENT DURING POST
NAME OF CREDITOR DUE MONTH PETITION
---------------- -------- ------- --------
1. Bank of America (FOOTNOTE) N/A 21,213,321 41,900,067
2. Leases Payable (FOOTNOTE) (Not Available)
3.
4.
5. (Attach List)
6. TOTAL 0 21,213,321 41,900,067
This form x does does not have related footnotes on Footnotes Supplement.
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13
CASE NAME: KEVCO MANAGEMENT, INC. SUPPLEMENT TO
CASE NUMBER: 401-40788-BJH-11 ACCRUAL BASIS - 6
PAYMENTS TO INSIDERS AND PROFESSIONALS MONTH: APR-01
------------
INSIDERS
TYPE OF AMOUNT TOTAL PAID
NAME PAYMENT PAID TO DATE
---- ------- ------ ----------
A. Bill Estes Director's Fees 6,500 6,500
B. Peter McKee Director's Fees 6,000 6,000
C. Richard Nevins Director's Fees 6,500 6,500
D.
E.
F.
G.
H.
TOTAL OTHER PAYMENTS TO INSIDERS - LINE 5 19,000 19,000
PROFESSIONALS
DATE OF
COURT
ORDER TOTAL
AUTHORIZING AMOUNT TOTAL PAID INCURRED &
NAME PAYMENT PAID TO DATE UNPAID*
---- ----------- ------ ---------- -----------
A.
B.
C.
D.
E.
F.
G.
H.
TOTAL OTHER PAYMENTS TO PROFESSIONALS-LINE 5
* Include all fees incurred, both approved and unapproved
POST PETITION STATUS OF SECURED NOTES, LEASES PAYABLE AND ADEQUATE
PROTECTION PAYMENTS
SCHEDULED AMOUNT TOTAL
MONTHLY PAID UNPAID
PAYMENTS DURING POST
NAME OF CREDITOR DUE MONTH PETITION
- ---------------- --------- ------ ----------
A.
B.
C.
D.
E.
STATUS OF OTHER CREDITORS - LINE 5
14
CASE NAME: KEVCO MANAGEMENT, INC. ACCRUAL BASIS - 7
CASE NUMBER: 401-40788-BJH-11
MONTH: APRIL-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
TYPE OF POLICY CARRIER PERIOD COVERED PAYMENT AMOUNT & FREQUENCY
- -------------- ------- -------------- --------------------------
Property Lexingon, Allianz 5/29/00-5/29/01 Annual $ 3,632
Group Health Blue Cross Blue Shield Self Insured - Renews Annual Annual $141,036
Auto Liberty Mutual 9/1/00-9/1/01 Annual $ 6,030
Fiduciary Federal Insurance 7/15/00-9/1/01 Annual $ 10,800
Employee Practices Federal Insurance 6/30/99-6/30/01 Annual $ 72,800
Crimeguard National Union 6/30/00-9/1/01 Annual $ 10,873
D&O Liability Great American 10/31/98-10/31/01 Annual $ 71,250
This form x does does not have related footnotes on Footnotes Supplement.
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15
CASE NAME: KEVCO MANAGEMENT, INC. FOOTNOTES SUPPLEMENT
CASE NUMBER: 401-40788-BJH-11 ACCRUAL BASIS
MONTH: April-01
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ACCRUAL
BASIS
FORM LINE
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
5 13 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 7 Prepaid Expenses consist of payroll, rent, insurance and other
miscellaneous items. The largest prepaid item, payroll, is due
to the timing difference between transfers to ADP payroll
service and distribution of payroll checks.
1 15A Intercompany receivables/payables are from/to co-debtors Kevco
1 27A Manufacturing, LP (Case No. 401-40784-BJH-11), Kevco
7 3 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). Although intercompany balances
increased post-petition, the increase has not been reflected as
post-petition assets and liabilities.
1 15A Intercompany assets were inadvertently misstated on Debtor's
1 32 Schedules. The February adjustment to equity corrected the
error. The April adjustment to equity is due to a secured debt
reduction pursuant to the sale of Kevco Manufacturing, LP's
operating division (Sunbelt Wood), as well as a direct cash
payment of $15 million (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.
1 22 The Debtor records on its books accruals for certain liabilities
2 17A 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." During an internal audit of the accrued
liabilities account during April, an error was discovered and
corrected.
16
CASE NAME: KEVCO MANAGEMENT, INC. FOOTNOTES SUPPLEMENT
CASE NUMBER: 401-40788-BJH-11 ACCRUAL BASIS
MONTH: April-01
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ACCRUAL
BASIS
FORM LINE
NUMBER NUMBER FOOTNOTE/EXPLANATION
- -------- ------ ----------------------
1 1 (A) Pursuant to an Asset Purchase Agreement approved by the Court on February
1 24 23, 2001 and effective as of the same date among Kevco, Inc., Kevco
6 1 Manufacturing, LP, Wingate Management Co. II, LP and Adorn LLC, certain assets
7 4 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.
(B) Pursuant to an Asset Purchase Agreement approved by the Court on April 3,
2001 and effective as of the same date, Universal Forest Products Eastern
Division, Inc. purchased the assets (inventory, equipment, machinery and five
of the seven facilities at which Sunbelt Wood Components Division operates) of
the Sunbelt division of Kevco Manufacturing, LP. Approximately $7 million in
sales proceeds were paid directly to Bank of America thereby reducing
pre-petition secured debt.
(C) Debtor paid $15 million from available cash during April to Bank of
America to reduce pre-petition secured debt.
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.
4 9,12 Sales / property tax liabilities represent accruals of tax and are not yet due.
6 2 The Debtor is the lessee on hundreds of real and personal property leases, the
vast majority of which have been or will soon be rejected. The Debtor does not
isolate monthly payments due or paid on account of such leases. Instead, all
lease payments are reflected in the Debtor's accounts payable system. To
separately identify monthly accruals and payments on leases would require an
enormous outlay of the Debtor's accounting personnel and professionals. The
Debtor simply does not have available to it the resources that would be
required to provide the detail requested. If any party-in-interest desires
specific information about any specific lease, the Debtor will provide such
information upon request.