EXHIBIT 99.5
CASE NAME: KEVCO COMPONENTS, INC. ACCRUAL BASIS
CASE NUMBER: 401-40790-BJH-11
JUDGE: BARBARA J. HOUSER
UNITED STATES BANKRUPTCY COURT
NORTHERN DISTRICT OF TEXAS
--------
FORT WORTH DIVISION
----------
MONTHLY OPERATING REPORT
MONTH ENDING: JULY 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/ Wilford W. Simpson TREASURER
- --------------------------------------- -------------------------------
Original Signature of Responsible Party Title
WILFORD W. SIMPSON SEPTEMBER 24, 2001
- --------------------------------------- -------------------------------
Printed Name of Responsible Party Date
PREPARER:
/s/ Dennis S. Faulkner ACCOUNTANT FOR DEBTOR
- --------------------------------------- -------------------------------
Original Signature of Preparer Title
DENNIS S. FAULKNER SEPTEMBER 24, 2001
- --------------------------------------- -------------------------------
Printed Name of Preparer Date
CASE NAME: KEVCO COMPONENTS, INC. ACCRUAL BASIS - 1
CASE NUMBER: 401-40790-BJH-11
COMPARATIVE BALANCE SHEET
<Table>
<Caption>
SCHEDULED MONTH
ASSETS AMOUNT JUL-01 MONTH MONTH
- ------ ----------- ----------- ----- -----
1. Unrestricted Cash 134 5,668
2. Restricted Cash
3. Total Cash 134 5,668
4. Accounts Receivable (Net)
5. Inventory
6. Notes Receivable
7. Prepaid Expenses
8. Other (Attach List) 0 0
9. Total Current Assets 134 5,668
10. Property, Plant & Equipment
11. Less: Accumulated Depreciation/Depletion
12. Net Property, Plant & Equipment 0 0
13. Due From Insiders
14. Other Assets - Net of Amortization (Attach List) 0 0
15. Other (Attach List) 27,217,768 27,217,768
16. Total Assets 27,217,902 27,223,436
POST PETITION LIABILITIES
17. Accounts Payable
18. Taxes Payable
19. Notes Payable
20. Professional Fees
21. Secured Debt
22. Other (Attach List) 0
23. Total Post Petition Liabilities 0
PRE PETITION LIABILITIES
24. Secured Debt (FOOTNOTE) 75,885,064 15,071,491
25. Priority Debt
26. Unsecured Debt
27. Other (Attach List) 157,389,954 157,396,888
28. Total Pre Petition Liabilities 233,275,018 172,468,379
29. Total Liabilities 233,275,018 172,468,379
EQUITY
30. Pre Petition Owners' Equity (206,057,116)
31. Post Petition Cumulative Profit Or (Loss) (1,502)
32. Direct Charges To Equity (Attach Explanation) (FOOTNOTE) 60,813,675
33. Total Equity (145,244,943)
34. Total Liabilities and Equity 27,223,436
</Table>
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CASE NAME: KEVCO COMPONENTS, INC. SUPPLEMENT TO
CASE NUMBER: 401-40790-BJH-11 ACCRUAL BASIS - 1
COMPARATIVE BALANCE SHEET
<Table>
<Caption>
SCHEDULED MONTH
ASSETS AMOUNT JUL-01 MONTH MONTH
- ------ ----------- ----------- ----- -----
A.
B.
C.
D.
E.
TOTAL OTHER ASSETS - LINE 8 0 0
A.
B.
C.
D.
E.
TOTAL OTHER ASSETS NET OF
AMORTIZATION - LINE 14 0 0
A. Investment In Subsidiaries 27,217,768 27,217,768
B.
C.
D.
E.
TOTAL OTHER ASSETS - LINE 15 27,217,768 27,217,768
POST PETITION LIABILITIES
A.
B.
C.
D.
E.
TOTAL OTHER POST PETITION
LIABILITIES - LINE 22 0
PRE PETITION LIABILITIES
A. Intercompany Payables (FOOTNOTE) 28,889,954 28,896,888
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 27 157,389,954 157,396,888
</Table>
CASE NAME: KEVCO COMPONENTS, INC. ACCRUAL BASIS - 2
CASE NUMBER: 401-40790-BJH-11
INCOME STATEMENT
<Table>
<Caption>
MONTH QUARTER
REVENUES JUL-01 MONTH MONTH TOTAL
- -------- ------ ----- ----- -------
1. Gross Revenues 0
2. Less: Returns & Discounts 0
3. Net Revenue 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
8. Gross Profit 0 0
OPERATING EXPENSES
9. Officer / Insider Compensation 0
10. Selling & Marketing 0
11. General & Administrative 102 102
12. Rent & Lease 0
13. Other (Attach List) 0 0
14. Total Operating Expenses 102 102
15. Income Before Non-Operating
Income & Expense (102) (102)
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
REORGANIZATION EXPENSES
23. Professional Fees 0
24. U.S. Trustee Fees 0
25. Other (Attach List) 0
26. Total Reorganization Expenses 0 0
27. Income Tax 0
28. Net Profit (Loss) (102) (102)
</Table>
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CASE NAME: KEVCO COMPONENTS, INC. ACCRUAL BASIS - 3
CASE NUMBER: 401-40790-BJH-11
<Table>
<Caption>
CASH RECEIPTS AND MONTH QUARTER
DISBURSEMENTS JUL-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
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
</Table>
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CASE NAME: KEVCO COMPONENTS, INC. SUPPLEMENT TO ACCRUAL BASIS -3
JULY, 2001
CASE NUMBER: 401-40790-BJH-11 CASH RECEIPTS AND DISBURSEMENTS
<Table>
<Caption>
DIST LP MFG MGMT HOLDING COMP KEVCO INC TOTAL
------- -------- ---------- ------- ------ --------- ----------
1 CASH-BEGINNING OF MONTH -- 3,739 5,395,155 4,631 5,668 1,000 5,410,193
RECEIPTS FROM OPERATIONS
2 CASH SALES -- -- --
COLLECTION OF ACCOUNTS RECEIVABLE
3 PRE PETITION -- -- --
4 POST PETITION 47,759 -- 47,759
5 TOTAL OPERATING RECEIPTS 47,759 -- -- -- -- -- 47,759
NON OPERATING RECEIPTS
6 LOANS & ADVANCES -- --
7 SALE OF ASSETS 482,442 55,779 68,000 606,221
8 OTHER -- 50,449 95,885 -- -- -- 146,334
INTERCOMPANY TRANSFERS 88,194 121,941 (210,135) -- -- --
SALE EXPENSE REIMBURSEMENT
LIFE INSURANCE CASH VALUE
RENT
PAYROLL TAX ADVANCE RETURNED 43,264
MISC. 43,707 --
INTEREST INCOME 8,914
9 TOTAL NON OPERATING RECEIPTS 570,636 228,169 (46,250) -- -- -- 752,555
10 TOTAL RECEIPTS 618,395 228,169 (46,250) -- -- -- 800,314
11 CASH AVAILABLE 618,395 231,908 5,348,905 4,631 5,668 1,000 6,210,507
OPERATING DISBURSEMENTS
12 NET PAYROLL 342,427 9,430 282,924 634,781
13 PAYROLL TAXES PAID -- 238,878 238,878
14 SALES, USE & OTHER TAXES PAID -- --
15 SECURED/RENTAL/LEASES 15,069 3,223 40,094 58,386
16 UTILITIES 67,481 3,641 13,097 84,219
17 INSURANCE -- 137,376 137,376
18 INVENTORY PURCHASES -- --
19 VEHICLE EXPENSE -- --
20 TRAVEL 4,264 -- 4,264
21 ENTERTAINMENT -- --
22 REPAIRS & MAINTENANCE 2,954 74 5,492 8,520
23 SUPPLIES 3,873 -- 30,637 34,510
24 ADVERTISING --
25 OTHER 182,327 61,801 183,730 -- -- -- 427,858
LOAN PAYMENTS 55,779 55,779
FREIGHT 14,204 3,126 17,330
CONTRACT LABOR 846 -- 45,359 46,205
401 K PAYMENTS -- --
PAYROLL TAX ADVANCE ADP --
WAGE GARNISHMENTS 1,761 1,761
MISC. 167,277 2,896 136,610 306,783
26 TOTAL OPERATING DISBURSEMENTS 618,395 78,169 932,228 -- -- -- 1,628,792
REORGANIZATION DISBURSEMENTS
27 PROFESSIONAL FEES -- 157,275 157,275
28 US TRUSTEE FEES -- --
29 OTHER --
30 TOTAL REORGANIZATION EXPENSE -- -- 157,275 -- -- -- 157,275
31 TOTAL DISBURSEMENTS 618,395 78,169 1,089,503 -- -- -- 1,786,067
32 NET CASH FLOW -- 150,000 (1,135,753) -- -- -- (985,753)
33 CASH-END OF MONTH -- 153,739 4,259,402 4,631 5,668 1,000 4,424,440
</Table>
CASE NAME: KEVCO COMPONENTS, INC. ACCRUAL BASIS - 4
CASE NUMBER: 401-40790-BJH-11
<Table>
<Caption>
SCHEDULED MONTH
ACCOUNTS RECEIVABLE AGING AMOUNT JUL-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
</Table>
AGING OF POST PETITION MONTH: JULY-01
TAXES AND PAYABLES --------------
<Table>
<Caption>
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
5. Total Taxes Payable 0 0 0 0 0
6. Accounts Payable 0 0
</Table>
MONTH: JULY-01
----------------
STATUS OF POST PETITION TAXES
<Table>
<Caption>
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
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
15. Total State And Local 0 0 0 0
16. Total Taxes 0 0 0 0
</Table>
* 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.
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CASE NAME: KEVCO COMPONENTS, INC. ACCRUAL BASIS - 5
CASE NUMBER: 401-40790-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: JULY-01
----------------
<Table>
<Caption>
BANK RECONCILIATIONS Account # 1 Account # 2
- -------------------- ----------- -----------
A. BANK: PNC Bank Delaware Other Accounts
B. ACCOUNT NUMBER: 56-0359-4656 (Attach Sheet) TOTAL
C. PURPOSE (TYPE): DIP Account
1. Balance Per Bank Statement 5,123 5,123
2. Add: Total Deposits Not Credited --
3. Subtract: Outstanding Checks --
4. Other Reconciling Items 545 545
5. Month End Balance Per Books 5,668 -- 5,668
6. Number of Last Check Written 1018
</Table>
INVESTMENT ACCOUNTS
<Table>
<Caption>
DATE OF TYPE OF
BANK, ACCOUNT NAME & NUMBER PURCHASE INSTRUMENT PURCHASE PRICE CURRENT VALUE
- --------------------------- -------- ---------- -------------- -------------
7.
8.
9.
10. (Attach List)
11. Total Investments 0 0
CASH
12. Currency On Hand 0
13. Total Cash - End of Month 5,668
</Table>
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CASE NAME: KEVCO COMPONENTS, INC. ACCRUAL BASIS - 6
CASE NUMBER: 401-40790-BJH-11
MONTH: JULY-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
<Table>
<Caption>
TYPE OF AMOUNT PAID TO
NAME PAYMENT PAID DATE
---- ------- ------ -------
1.
2.
3.
4.
5. (Attach List)
6. Total Payments To
Insiders 0 0
</Table>
PROFESSIONALS
<Table>
<Caption>
DATE OF
COURT ORDER TOTAL TOTAL
AUTHORIZING AMOUNT AMOUNT PAID TO INCURRED
NAME PAYMENT APPROVED PAID DATE & UNPAID*
---- ----------- -------- ------ ------- ---------
1.
2.
3.
4.
5. (Attach List)
6. Total Payments To
Professionals 0 0 0 0
</Table>
* Include all fees incurred, both approved and unapproved
POST PETITION STATUS OF SECURED NOTES, LEASES PAYABLE AND ADEQUATE
PROTECTION PAYMENTS
<Table>
<Caption>
SCHEDULED AMOUNTS TOTAL
MONTHLY PAID UNPAID
PAYMENTS DURING POST
NAME OF CREDITOR DUE MONTH PETITION
---------------- --------- ------- -----------
1. Bank of America 0 15,071,491
2.
3.
4.
5. (Attach List)
6. TOTAL 0 0 15,071,491
</Table>
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CASE NAME: KEVCO COMPONENTS, INC. ACCRUAL BASIS - 7
CASE NUMBER: 401-40790-BJH-11
MONTH: JULY-01
------------
QUESTIONNAIRE
<Table>
<Caption>
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
</Table>
If the answer to any of the above questions is "Yes", provide a detailed
explanation of each item. Attach additional sheets if necessary.
INSURANCE
<Table>
<Caption>
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.
</Table>
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 employees and no operations.
INSTALLMENT PAYMENTS
<Table>
<Caption>
TYPE OF POLICY CARRIER PERIOD COVERED PAYMENT AMOUNT & FREQUENCY
-------------- ------- -------------- --------------------------
General Liability Liberty Mutual 9/1/00-3/1/02 Semi-Annual $64,657
</Table>
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CASE NAME: KEVCO COMPONENTS, INC. FOOTNOTES SUPPLEMENT
CASE NUMBER: 401-40790-BJH-11 ACCRUAL BASIS
MONTH: JULY-01
------------
<Table>
<Caption>
ACCRUAL
BASIS
FORM
NUMBER LINE NUMBER FOOTNOTE/EXPLANATION
- ------- ----------- --------------------
1 1 Pursuant to the February 12, 2001 Order (1) Authorizing Continued Use of Existing
3 1 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. Debtor does maintain a small petty cash account that is
included in the cash supplement schedule.
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 DCM Delaware, Inc. (Case No. 401-40787-BJH-11).
1 32 The direct charges to equity are due to the secured debt reductions pursuant to
sales of Kevco Manufacturing L.P.'s operating divisions, the sale of the South
Region of Kevco Distribution LP, as well as direct cash payments of $25 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.
</Table>