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
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MONTHLY OPERATING REPORT
MONTH ENDING: SEPTEMBER 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/ Wilford W. Simpson TREASURER
- --------------------------------------- ----------------------------
Original Signature of Responsible Party Title
WILFORD W. SIMPSON OCTOBER 29, 2001
- --------------------------------------- ----------------------------
Printed Name of Responsible Party Date
PREPARER:
/s/ Dennis S. Faulkner ACCOUNTANT FOR DEBTOR
- --------------------------------------- ----------------------------
Original Signature of Preparer Title
DENNIS S. FAULKNER OCTOBER 29, 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 MONTH MONTH
ASSETS AMOUNT JUL-01 AUG-01 SEP-01
- ------ --------- ------ ------ ------
1. Unrestricted Cash 134 5,668 0 0
2. Restricted Cash
3. Total Cash 134 5,668 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 134 5,668 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
15. Other (Attach List) 27,217,768 27,217,768 27,217,768 27,217,768
16. Total Assets 27,217,902 27,223,436 27,217,768 27,217,768
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 15,071,491 14,930,296 15,365,448
25. Priority Debt
26. Unsecured Debt
27. Other (Attach List) 157,389,954 157,396,888 157,391,764 157,391,764
28. Total Pre Petition Liabilities 233,275,018 172,468,379 172,322,060 172,757,212
29. Total Liabilities 233,275,018 172,468,379 172,322,060 172,757,212
EQUITY
30. Pre Petition Owners' Equity (206,057,116) (206,057,116) (206,057,116)
31. Post Petition Cumulative Profit Or (Loss) (1,502) (2,047) 21,221
32. Direct Charges To Equity (Attach Explanation) (FOOTNOTE) 60,813,675 60,954,871 60,496,451
33. Total Equity (145,244,943) (145,104,292) (145,539,444)
34. Total Liabilities and Equity 27,223,436 27,217,768 27,217,768
</Table>
This form x does does not have related footnotes on Footnotes Supplement.
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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 MONTH MONTH
ASSETS AMOUNT JUL-01 AUG-01 SEP-01
- ------ --------- ------ ------ ------
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 27,217,768 27,217,768 27,217,768 27,217,768
B.
C.
D.
E.
TOTAL OTHER ASSETS - LINE 15 27,217,768 27,217,768 27,217,768 27,217,768
POST PETITION LIABILITIES
A.
B.
C.
D.
E.
TOTAL OTHER POST PETITION
LIABILITIES - LINE 22 0 0 0
PRE PETITION LIABILITIES
A. Intercompany Payables (FOOTNOTE) 28,889,954 28,896,888 28,891,764 28,891,764
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 27 157,389,954 157,396,888 157,391,764 157,391,764
</Table>
CASE NAME: KEVCO COMPONENTS, INC. ACCRUAL BASIS - 2
CASE NUMBER: 401-40790-BJH-11
INCOME STATEMENT
<Table>
<Caption>
MONTH MONTH MONTH QUARTER
REVENUES JUL-01 AUG-01 SEP-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 0
10. Selling & Marketing 0
11. General & Administrative 102 545 0 647
12. Rent & Lease 0
13. Other (Attach List) 0 0 0 0
14. Total Operating Expenses 102 545 0 647
15. Income Before Non-Operating
Income & Expense (102) (545) 0 (647)
OTHER INCOME & EXPENSES
16. Non-Operating Income (Att List) 23,268 23,268
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 23,268 23,268
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) (102) (545) 23,268 22,621
</Table>
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CASE NAME: KEVCO COMPONENTS, INC. SUPPLEMENT TO
CASE NUMBER: 401-40790-BJH-11 ACCRUAL BASIS - 2
INCOME STATEMENT
<Table>
<Caption>
MONTH MONTH MONTH QUARTER
OPERATING EXPENSES JUL-01 AUG-01 SEP-01 TOTAL
- ------------------ ------ ------ ------ -------
A. 0
B. 0
C. 0
D. 0
E. 0
TOTAL OTHER OPERATING
EXPENSES - LINE 13 0 0 0 0
OTHER INCOME & EXPENSES
A. Income Tax Refund from Georgia Department of Rev. 23,268 23,268
B. 0
C. 0
D. 0
E. 0
TOTAL NON-OPERATING INCOME -
LINE 16 0 0 23,268 23,268
A. 0
B. 0
C. 0
D. 0
E. 0
TOTAL NON-OPERATING
EXPENSE - LINE 17 0 0 0 0
REORGANIZATION EXPENSES
A. 0
B. 0
C. 0
D. 0
E. 0
TOTAL OTHER REORGANIZATION
EXPENSES - LINE 25 0 0 0 0
</Table>
CASE NAME: KEVCO COMPONENTS, INC. ACCRUAL BASIS - 3
CASE NUMBER: 401-40790-BJH-11
<Table>
<Caption>
CASH RECEIPTS AND MONTH MONTH MONTH QUARTER
DISBURSEMENTS JUL-01 AUG-01 SEP-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
</Table>
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CASE NAME: KEVCO COMPONENTS, INC. SUPPLEMENT TO ACCRUAL BASIS - 3
SEPTEMBER, 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 -- 150,505 3,618,707 -- -- 1,000 3,770,212
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 -- --
7 SALE OF ASSETS 100,000 -- 100,000
8 OTHER 36,713 28,468 46,412 -- 23,268 -- 134,861
INTERCOMPANY TRANSFERS (127,561) 42,440 108,389 -- (23,268) --
SALE EXPENSE REIMBURSEMENT
INCOME TAX REFUND 23,268
RENT
PAYROLL TAX ADVANCE RETURNED
MISC. 36,713 37,857 --
INTEREST INCOME 8,555
9 TOTAL NON OPERATING RECEIPTS 9,152 70,908 154,801 -- -- -- 234,861
10 TOTAL RECEIPTS 9,152 70,908 154,801 -- -- -- 234,861
11 CASH AVAILABLE 9,152 221,413 3,773,508 -- -- 1,000 4,005,073
OPERATING DISBURSEMENTS
12 NET PAYROLL 18,582 18,582
13 PAYROLL TAXES PAID -- 6,780 6,780
14 SALES, USE & OTHER TAXES PAID 2,870 -- 2,870
15 SECURED/RENTAL/LEASES -- 5,002 5,002
16 UTILITIES 262 -- 2,690 2,952
17 INSURANCE -- 112,200 112,200
18 INVENTORY PURCHASES -- --
19 VEHICLE EXPENSE -- --
20 TRAVEL -- --
21 ENTERTAINMENT -- --
22 REPAIRS & MAINTENANCE 2,656 -- 2,656
23 SUPPLIES -- --
24 ADVERTISING --
25 OTHER 3,364 71,211 99,384 -- -- -- 173,959
LOAN PAYMENTS -- --
FREIGHT 959 -- 1,165 2,124
CONTRACT LABOR -- 96,405 96,405
401 K PAYMENTS -- --
PAYROLL TAX ADVANCE ADP --
WAGE GARNISHMENTS --
MISC. 2,405 71,211 1,814 75,430
26 TOTAL OPERATING DISBURSEMENTS 9,152 71,211 244,638 -- -- -- 325,001
REORGANIZATION DISBURSEMENTS
27 PROFESSIONAL FEES -- 11,217 11,217
28 US TRUSTEE FEES -- --
29 OTHER --
30 TOTAL REORGANIZATION EXPENSE -- -- 11,217 -- -- -- 11,217
31 TOTAL DISBURSEMENTS 9,152 71,211 255,855 -- -- -- 336,218
32 NET CASH FLOW -- (303) (101,054) -- -- -- (101,357)
33 CASH- END OF MONTH -- 150,202 3,517,653 -- -- 1,000 3,668,855
</Table>
CASE NAME: KEVCO COMPONENTS, INC. ACCRUAL BASIS - 4
CASE NUMBER: 401-40790-BJH-11
<Table>
<Caption>
SCHEDULED MONTH MONTH MONTH
ACCOUNTS RECEIVABLE AGING AMOUNT JUL-01 AUG-01 SEP-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
</Table>
AGING OF POST PETITION MONTH: SEPTEMBER-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: SEPTEMBER-01
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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: SEPTEMBER-01
--------------
<Table>
<Caption>
BANK RECONCILIATIONS Account # 1 Account # 2
- -------------------- ----------- -----------
A. BANK: Other Accounts TOTAL
B. ACCOUNT NUMBER: (Attach Sheet)
C. PURPOSE (TYPE):
1. Balance Per Bank Statement
2. Add: Total Deposits Not Credited
3. Subtract: Outstanding Checks
4. Other Reconciling Items
5. Month End Balance Per Books 0 0
6. Number of Last Check Written
</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 0
</Table>
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CASE NAME: KEVCO COMPONENTS, INC. ACCRUAL BASIS - 6
CASE NUMBER: 401-40790-BJH-11
MONTH: SEPTEMBER--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 TOTAL PAID
NAME PAYMENT PAID TO DATE
---- ------- -------- ------------
1.
2.
3.
4.
5. (Attach List)
6. Total Payments To Insiders 0 0
</Table>
PROFESSIONALS
<Table>
<Caption>
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 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 15,365,448
2.
3.
4.
5. (Attach List)
6. TOTAL 0 0 15,365,448
</Table>
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CASE NAME: KEVCO COMPONENTS, INC. ACCRUAL BASIS - 7
CASE NUMBER: 401-40790-BJH-11
MONTH: SEPTEMBER--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 X
coverages in effect?
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: SEPTEMBER-01
---------------
<Table>
<Caption>
ACCRUAL
BASIS
FORM
NUMBER LINE NUMBER FOOTNOTE/EXPLANATION
- ------- ----------- --------------------
1 1 Pursuant to the February 12, 2001 Order (1) Authorizing Continued
3 1 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. Debtor closed its petty cash
account during August.
1 24 The direct charges to equity are due to the secured debt
1 32 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. 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 24 In September, Liberty Mutual, Debtor's Workman's Compensation
carrier, drew $300,000 on a letter of credit issued during 2000
as reflected on the financial statements of Kevco Management,
Inc.
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).
</Table>