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
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FORT WORTH DIVISION
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MONTHLY OPERATING REPORT
MONTH ENDING: MAY 31, 2001
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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 5, 2001
- --------------------------------------- -----------------------
Printed Name of Responsible Party Date
PREPARER:
/s/ Dennis S. Faulkner ACCOUNTANT FOR DEBTOR
- --------------------------------------- -----------------------
Original Signature of Preparer Title
DENNIS S. FAULKNER JULY 5, 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
ASSETS AMOUNT MAY-01 MONTH MONTH
- ------ --------- ------ ----- -----
1 Unrestricted Cash
2 Restricted Cash
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 0 0
16. Total Assets 360,837 360,837 0 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 38,219,089
25. Priority Debt
26. Unsecured Debt
27. Other (Attach List) 128,815,071 128,815,071 0 0
28. Total Pre Petition Liabilities 204,700,135 167,034,160 0 0
29. Total Liabilities 204,700,135 167,034,160 0 0
EQUITY
30. Pre Petition Owners' Equity (204,339,298)
31. Post Petition Cumulative Profit Or (Loss)
32. Direct Charges To Equity (Attach Explanation )(Footnote) 37,665,975
33. Total Equity (166,673,323) 0 0
34. Total Liabilities and Equity 360,837 0 0
This form X does does not have related footnotes on Footnotes Supplement.
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CASE NAME: KEVCO GP, INC. SUPPLEMENT TO
CASE NUMBER: 401-40786-BJH-11 ACCRUAL BASIS - 1
COMPARATIVE BALANCE SHEET
SCHEDULED MONTH
ASSETS AMOUNT MAY-01 MONTH 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
B
C
D
E
TOTAL OTHER ASSETS - LINE 15 360,837 360,837 0 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
B. 10 3/8% Senior Sub. Notes 105,000,000 105,000,000
C. Sr. Sub. Exchangeable Notes 23,500,000 23,500,000
D
E
TOTAL OTHER PRE PETITION
LIABILITIES - LINE 27 128,815,071 128,815,071 0 0
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CASE NAME: KEVCO GP, INC. ACCRUAL BASIS - 2
CASE NUMBER: 401-40786-BJH-11
INCOME STATEMENT
MONTH QUARTER
REVENUES MAY-01 MONTH MONTH 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
17. Non-Operating Expense (Att List) 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
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.
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CASE NAME: KEVCO GP, INC. ACCRUAL BASIS - 3
CASE NUMBER: 401-40786-BJH-11
CASH RECEIPTS AND MONTH QUARTER
DISBURSEMENTS MAY-01 MONTH MONTH 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 0 0 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 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 x does does not have related footnotes on Footnotes Supplement.
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CASE NAME: KEVCO GP, INC. SUPPLEMENT TO ACCRUAL BASIS - 3
MAY, 2001
CASE NUMBER: 401-40786-BJH-11 CASH RECEIPTS AND DISBURSEMENTS
DIST LP MFG MGMT HOLDING COMP KEVCO INC TOTAL
------- --- ---- ------- ---- --------- -----
1 CASH-BEGINNING OF MONTH -- (66,617) 15,894,069 5,010 6,050 1,000 15,839,512
RECEIPTS FROM OPERATIONS
2 CASH SALES -- -- --
COLLECTION OF ACCOUNTS RECEIVABLE
3 PRE PETITION -- -- --
4 POST PETITION 1,632,245 3,693,478 5,325,723
5 TOTAL OPERATING RECEIPTS 1,632,245 3,693,478 -- -- -- -- 5,325,723
NON OPERATING RECEIPTS
6 LOANS & ADVANCES -- --
7 SALE OF ASSETS 4,482,109 484,077 4,966,186
8 OTHER 90,909 -- 157,652 -- -- 106,188 354,749
INTERCOMPANY TRANSFERS (478,997) (1,518,081) 2,103,266 -- -- (106,188) --
SALE EXPENSE REIMBURSEMENT
LIFE INSURANCE CASH VALUE 107,606
RENT 32,000
TAX REFUND 106,188
MISC. 58,909 --
INTEREST INCOME 50,046
9 TOTAL NON OPERATING RECEIPTS 4,094,021 (1,034,004) 2,260,918 -- -- -- 5,320,935
10 TOTAL RECEIPTS 5,726,266 2,659,474 2,260,918 -- -- -- 10,646,658
11 CASH AVAILABLE 5,726,266 2,592,857 18,154,987 5,010 6,050 1,000 26,486,170
OPERATING DISBURSEMENTS
12 NET PAYROLL 700,664 526,941 203,943 1,431,548
13 PAYROLL TAXES PAID -- 647,797 647,797
14 SALES, USE & OTHER TAXES PAID 11,522 -- -- 11,522
15 SECURED/RENTAL/LEASES 177,239 36,916 37,642 251,797
16 UTILITIES 67,692 10,668 66,785 145,145
17 INSURANCE 14,687 -- 490,925 505,612
18 INVENTORY PURCHASES 10,627 1,173,682 -- 1,184,309
19 VEHICLE EXPENSE 17,018 16,375 -- 33,393
20 TRAVEL 9,370 25,190 864 35,424
21 ENTERTAINMENT 4,182 524 107 4,813
22 REPAIRS & MAINTENANCE 10,148 28,139 -- 38,287
23 SUPPLIES 1,839 16,336 12,624 30,799
24 ADVERTISING -- -- -- --
25 OTHER 4,701,250 742,608 235,456 -- -- -- 5,679,314
LOAN PAYMENTS 4,482,109 484,077 -- 4,966,186
FREIGHT 87,851 144,842 232,693
CONTRACT LABOR 1,183 346 59,580 61,109
401 K PAYMENTS -- 54,196 54,196
PAYROLL TAX ADVANCE ADP --
WAGE GARNISHMENTS --
MISC. 130,107 113,343 121,680 365,130
26 TOTAL OPERATING DISBURSEMENTS 5,726,238 2,577,379 1,696,143 -- -- -- 9,999,760
REORGANIZATION DISBURSEMENTS
27 PROFESSIONAL FEES -- 196,900 196,900
28 US TRUSTEE FEES -- --
29 OTHER --
30 TOTAL REORGANIZATION EXPENSE -- -- 196,900 -- -- -- 196,900
31 TOTAL DISBURSEMENTS 5,726,238 2,577,379 1,893,043 -- -- -- 10,196,660
32 NET CASH FLOW 28 82,095 367,875 -- -- -- 449,998
33 CASH- END OF MONTH 28 15,478 16,261,944 5,010 6,050 1,000 16,289,510
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CASE NAME: KEVCO GP, INC. ACCRUAL BASIS - 4
CASE NUMBER: 401-40786-BJH-11
SCHEDULED MONTH
ACCOUNTS RECEIVABLE AGING AMOUNT MAY-01 MONTH 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: MAY-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: MAY-01
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 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.
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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: MAY-01
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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.
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CASE NAME: KEVCO GP, INC. ACCRUAL BASIS - 6
CASE NUMBER: 401-40786-BJH-11
MONTH: MAY-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.
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CASE NAME: KEVCO GP, INC. ACCRUAL BASIS - 7
CASE NUMBER: 401-40786-BJH-11
MONTH: MAY-01
QUESTIONNAIRE -------------
YES NO
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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 1, 24 [D])
INSURANCE
YES NO
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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
TYPE OF POLICY CARRIER PERIOD COVERED PAYMENT AMOUNT & 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.
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CASE NAME: KEVCO GP, INC. FOOTNOTES SUPPLEMENT
CASE NUMBER: 401-40786-BJH-11 ACCRUAL BASIS
MONTH: MAY-01
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ACCRUAL
BASIS
FORM
NUMBER LINE NUMBER FOOTNOTE / EXPLANATION
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1 24 (A) Pursuant to an Asset Purchase Agreement
7 4 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.
(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, L.P.
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.
(D) Pursuant to an Asset Purchase Agreement
approved by the Court on April 25, 2001 and
effective as of April 30, 2001, Alliance
Investment and Management Company, Inc. purchased
most of the assets (inventory, equipment,
machinery and two of seven facilities) of the
South Region of Kevco Distribution, LP.
Approximately $4 million in sales proceeds were
paid directly to Bank of America 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), DCM Delaware, Inc. (Case No.
401-40787-BJH-11), and Kevco Components, Inc.
(Case No. 401-40790-BJH-11).
1 32 The direct charges to equity are due to the
secured debt reductions pursuant to sales of two
of Kevco Manufacturing, L.P.'s operating divisions
(Design Components and Sunbelt Wood), and the
asset sale of the South Region of Kevco
Distribution 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.
3 1 Pursuant to the February 12, 2001 Order (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. Kevco GP, Inc. has
no active bank accounts.