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: JUNE 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 AUGUST 24, 2001
- --------------------------------------- -----------------------------------
Printed Name of Responsible Party Date
PREPARER:
/s/ Dennis S. Faulkner ACCOUNTANT FOR DEBTOR
- --------------------------------------- -----------------------------------
Original Signature of Preparer Title
DENNIS S. FAULKNER AUGUST 24, 2001
- --------------------------------------- -----------------------------------
Printed Name of Preparer Date
CASE NAME: KEVCO MANAGEMENT, INC. ACCRUAL BASIS - 1
CASE NUMBER: 401-40788-BJH-11
COMPARATIVE BALANCE SHEET
SCHEDULED MONTH MONTH
ASSETS AMOUNT MAY-01 JUNE-01 MONTH
- ------ --------- ---------- --------- -----
1. Unrestricted Cash (FOOTNOTE) 6,557,974 16,261,944 5,395,155
2. Restricted Cash
3. Total Cash 6,557,974 16,261,944 5,395,155 0
4. Accounts Receivable (Net)
5. Inventory
6. Notes Receivable
7. Prepaid Expenses (FOOTNOTE) 3,450,681 2,101,323 1,157,443
8. Other (Attach List) 263,606 8,794 8,794 0
9. Total Current Assets 10,272,261 18,372,061 6,561,392 0
10. Property, Plant & Equipment 3,285,885 3,239,512 3,239,512
11. Less: Accumulated
Depreciation/Depletion (1,753,163) (1,933,827) (1,933,827)
12. Net Property, Plant & Equipment 1,532,722 1,305,685 1,305,685 0
13. Due From Insiders
14. Other Assets - Net of Amortization
(Attach List) 36,082 22,298 22,218 0
15. Other (Attach List) 153,399,371 145,695,477 39,971,438 0
16. Total Assets 165,240,436 165,395,521 47,860,733 0
POST PETITION LIABILITIES
17. Accounts Payable 487,237 487,237
18. Taxes Payable 9,523 10,579
19. Notes Payable
20. Professional Fees
21. Secured Debt
22. Other (Attach List) (FOOTNOTE) 3,873,149 4,062,442 0
23. Total Post Petition Liabilities 4,369,909 4,560,258 0
PRE PETITION LIABILITIES
24. Secured Debt (FOOTNOTE) 75,885,064 38,219,089 15,018,882
25. Priority Debt (FOOTNOTE) 200,832 91,281 91,281
26. Unsecured Debt 1,779,701 1,009,952 1,589,271
27. Other (Attach List) 242,243,558 285,367,952 169,076,322 0
28. Total Pre Petition Liabilities 320,109,155 324,688,274 185,775,756 0
29. Total Liabilities 320,109,155 329,058,183 190,336,014 0
EQUITY
30. Pre Petition Owners' Equity (154,868,719) (154,868,719)
31. Post Petition Cumulative Profit
Or (Loss) (2,686,651) (4,118,883)
32. Direct Charges To Equity (Attach
Explanation FOOTNOTE) (6,107,292) 16,512,321
33. Total Equity (163,662,662) (142,475,281) 0
34. Total Liabilities and Equity 165,395,521 47,860,733 0
This form x does does not have related footnotes on Footnotes Supplement.
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CASE NAME: KEVCO MANAGEMENT, INC. SUPPLEMENT TO
CASE NUMBER: 401-40788-BJH-11 ACCRUAL BASIS - 1
COMPARATIVE BALANCE SHEET
SCHEDULED MONTH MONTH
ASSETS AMOUNT MAY-01 JUNE-01 MONTH
- ------ --------- ------ ------- -----
A. Security Deposit 8,794 8,794 8,794
B. Cash Surrender Value: Life Ins. 254,812
C.
D.
E.
TOTAL OTHER ASSETS - LINE 8 263,606 8,794 8,794 0
A. Organizational Costs 36,082 22,298 22,218
B.
C.
D.
E.
TOTAL OTHER ASSETS NET OF
AMORTIZATION - LINE 14 36,082 22,298 22,218 0
A. Intercompany Receivables
(FOOTNOTE) 113,743,558 105,724,039 0
B. Intercompany Royalties 39,655,813 39,971,438 39,971,438
C.
D.
E.
TOTAL OTHER ASSETS - LINE 15 153,399,371 145,695,477 39,971,438 0
POST PETITION LIABILITIES
A. Accrued Liabilities Other 1,188,410 1,513,241
B. Deferred Compensation 960,371 960,371
C. 401K Contribution 13,519 0
D. Accrued Health Claims 722,049 600,030
E. Accrued Payroll 860,288 860,288
F. Acc. Professional Fees 128,512 128,512
G.
TOTAL OTHER POST PETITION
LIABILITIES - LINE 22 3,873,149 4,062,442 0
PRE PETITION LIABILITIES
A. Intercompany Payables
(FOOTNOTE) 113,743,558 156,867,952 40,576,322
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 27 242,243,558 285,367,952 169,076,322 0
CASE NAME: KEVCO MANAGEMENT, INC. ACCRUAL BASIS - 2
CASE NUMBER: 401-40788-BJH-11
INCOME STATEMENT
MONTH MONTH QUARTER
REVENUES MAY-01 JUNE-01 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 57,754 198,596 256,350
10. Selling & Marketing (77) 0 (77)
11. General & Administrative 67,488 63,891 131,379
12. Rent & Lease 39,050 39,558 78,608
13. Other (Attach List) 157,723 867,000 0 1,024,723
14. Total Operating Expenses 321,938 1,169,046 0 1,490,984
15. Income Before Non-Operating
Income & Expense (321,938) (1,169,046) 0 (1,490,984)
OTHER INCOME & EXPENSES
16. Non-Operating Income (Att List) 72,152 69,069 0 141,221
17. Non-Operating Expense (Att List) 581 0 0 581
18. Interest Expense 0
19. Depreciation / Depletion 51,670 80 51,750
20. Amortization 0
21. Other (Attach List) 0
22. Net Other Income & Expenses 19,901 68,989 0 88,890
REORGANIZATION EXPENSES
23. Professional Fees 271,153 300,925 572,078
24. U.S. Trustee Fees 31,250 31,250
25. Other (Attach List) 0
26. Total Reorganization Expenses 271,153 332,175 0 603,328
27. Income Tax 0
28. Net Profit (Loss) (573,190) (1,432,232) 0 (2,005,422)
This form does x does not have related footnotes on Footnotes Supplement.
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CASE NAME: KEVCO MANAGEMENT, INC. SUPPLEMENT TO
CASE NUMBER: 401-40788-BJH-11 ACCRUAL BASIS - 2
INCOME STATEMENT
MONTH MONTH QUARTER
OPERATING EXPENSES MAY-01 JUNE-01 MONTH TOTAL
- ------------------ ------- ------- ----- -------
A. Payroll 115,459 89,019 204,478
B. Insurance 23,898 759,952 783,850
C. Utilities & Telephone 570 6,971 7,541
D. Taxes 17,796 11,059 28,855
E. 0
TOTAL OTHER OPERATING
EXPENSES - LINE 13 157,723 867,000 0 1,024,723
OTHER INCOME & EXPENSES
A. Interest and Misc. Income 51,252 69,069 120,321
B. Intercompany Operating Fees 20,900 20,900
C. 0
D.
0
E. 0
TOTAL NON-OPERATING
INCOME - LINE 16 72,152 69,069 0 141,221
A. Correction of Error on Books
(FOOTNOTE) 581 0 581
B. 0
C. 0
D. 0
E. 0
TOTAL NON-OPERATING
EXPENSE - LINE 17 581 0 0 581
REORGANIZATION EXPENSES
A. 0
B. 0
C. 0
D. 0
E. 0
TOTAL OTHER REORGANIZATION
EXPENSES - LINE 25 0 0 0 0
CASE NAME: KEVCO MANAGEMENT, INC. ACCRUAL BASIS - 3
CASE NUMBER: 401-40788-BJH-11
CASH RECEIPTS AND MONTH MONTH QUARTER
DISBURSEMENTS MAY-01 JUNE-01 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
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
JUNE, 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 28 15,478 16,261,944 5,010 6,050 1,000 16,289,510
RECEIPTS FROM OPERATIONS
2 CASH SALES - - -
COLLECTION OF ACCOUNTS RECEIVABLE
3 PRE PETITION - - -
4 POST PETITION 155,454 408,048 563,502
5 TOTAL OPERATING RECEIPTS 155,454 408,048 - - - - 563,502
NON OPERATING RECEIPTS
6 LOANS & ADVANCES - -
7 SALE OF ASSETS 300,000 13,335,176 365,203 14,000,379
8 OTHER 49,423 1,171 50,046 - - - 100,640
INTERCOMPANY TRANSFERS 466,052 (275,474) (190,578) - - -
SALE EXPENSE REIMBURSEMENT
LIFE INSURANCE CASH VALUE
RENT
TAX REFUND
MISC. 49,423 -
INTEREST INCOME 50,046
9 TOTAL NON OPERATING RECEIPTS 815,475 13,060,873 224,671 - - - 14,101,019
10 TOTAL RECEIPTS 970,929 13,468,921 224,671 - - - 14,664,521
11 CASH AVAILABLE 970,957 13,484,399 16,486,615 5,010 6,050 1,000 30,954,031
OPERATING DISBURSEMENTS
12 NET PAYROLL 166,627 66,305 169,505 402,437
13 PAYROLL TAXES PAID - 167,389 167,389
14 SALES, USE & OTHER TAXES PAID 281 - 281
15 SECURED/RENTAL/LEASES 215,126 6,622 38,617 260,365
16 UTILITIES 76,221 48,459 3,480 128,160
17 INSURANCE 31,699 - 166,527 198,226
18 INVENTORY PURCHASES 3,055 28,101 - 31,156
19 VEHICLE EXPENSE 906 - - 906
20 TRAVEL 10,030 8,043 143 18,216
21 ENTERTAINMENT - - - -
22 REPAIRS & MAINTENANCE 6,736 2,505 2,703 11,944
23 SUPPLIES 1,157 8,190 30,130 39,477
24 ADVERTISING -
25 OTHER 459,119 13,011,037 10,134,199 379 382 - 23,605,116
LOAN PAYMENTS 300,000 12,883,776 10,000,000 23,183,776
FREIGHT 15,800 112,046 4,535 132,381
CONTRACT LABOR 1,917 - 23,505 25,422
401 K PAYMENTS - 40,675 40,675
PAYROLL TAX ADVANCE ADP -
WAGE GARNISHMENTS 3,746 3,746
MISC. 141,402 15,215 61,738 379 382 219,116
26 TOTAL OPERATING DISBURSEMENTS 970,957 13,179,262 10,712,693 379 382 - 24,863,673
REORGANIZATION DISBURSEMENTS
27 PROFESSIONAL FEES 301,398 347,517 648,915
28 US TRUSTEE FEES - 31,250 31,250
29 OTHER -
30 TOTAL REORGANIZATION EXPENSE - 301,398 378,767 - - - 680,165
31 TOTAL DISBURSEMENTS 970,957 13,480,660 11,091,460 379 382 - 25,543,838
32 NET CASH FLOW (28) (11,739) (10,866,789) (379) (382) - (10,879,317)
33 CASH- END OF MONTH - 3,739 5,395,155 4,631 5,668 1,000 5,410,193
CASE NAME: KEVCO MANAGEMENT, INC. ACCRUAL BASIS - 4
CASE NUMBER: 401-40788-BJH-11
SCHEDULED MONTH MONTH
ACCOUNTS RECEIVABLE AGING AMOUNT MAY-01 JUNE-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: JUNE-01
TAXES AND PAYABLES ---------------------
0 - 30 31 - 60 61 - 90 91 +
TAXES PAYABLE DAYS DAYS DAYS DAYS TOTAL
- ------------- ------ ------- ------- ------ -------
1. Federal 0
2. State 6,412 6,412
3. Local 0
4. Other (See below) 4,167 4,167
5. Total Taxes Payable 10,579 0 0 0 10,579
6. Accounts Payable 421,933 12,600 43,518 9,186 487,237
MONTH: JUNE-01
------------------------
STATUS OF POST PETITION TAXES
AMOUNT
BEGINNING TAX WITHHELD AND/OR ENDING TAX
FEDERAL LIABILITY* ACCRUED (AMOUNT PAID) LIABILITY
- ------- -------------- --------------- ------------- ----------
1. Withholding ** 46,322 (46,322) 0
2. FICA - Employee ** 10,357 (10,357) 0
3. FICA - Employer ** 10,357 (10,357) 0
4. Unemployment 0 0
5. Income 0
6. Other (Attach List)
7. Total Federal Taxes 0 67,036 (67,036) 0
STATE AND LOCAL
8. Withholding 184 (184) 0
9. Sales (FOOTNOTE) 6,412 6,412
10. Excise 0
11. Unemployment 0 0
12. Real Property (FOOTNOTE) 0
13. Personal Property 3,111 1,056 4,167
14. Other (Attach List) 0
15. Total State And Local 9,523 1,240 (184) 10,579
16. Total Taxes 9,523 68,275 (67,219) 10,579
* 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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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: JUNE-01
-------------------
BANK RECONCILIATIONS Account # 1 Account # 2
- -------------------- ----------- -----------
A. BANK: Bank of America Bank of America Other Accounts TOTAL
(Attach List)
B. ACCOUNT NUMBER: 1295026976 3751629012
C. PURPOSE (TYPE): Operating Account DIP Disbursement Account
1. Balance Per Bank Statement 478,384 279,598 4,473,613 5,231,595
2. Add: Total Deposits Not Credited 0 0
3. Subtract: Outstanding Checks (25,160) (9,754) (34,914)
4. Other Reconciling Items 69,306 129,168 198,474
5. Month End Balance Per Books 522,530 279,598 4,593,027 5,395,155
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
- --------------------------- -------- ---------- -------------- -------------
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) 5,396,155
This form x does does not have related footnotes on Footnotes Supplement.
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CASE NAME: KEVCO MANAGEMENT, INC. SUPPLEMENT TO
CASE NUMBER: 401-40788-BJH-11 ACCRUAL BASIS - 5
MONTH: JUNE-01
------------------------
BANK RECONCILIATIONS Account # 3 Account # 4 Account # 5
- -------------------- ----------- ----------- -----------
A. BANK: Bank of America/ Bank of Bank of TOTAL
Nations Funds America America OTHER BANK
B. ACCOUNT NUMBER: 846713 3751775241 3750801912 ACCOUNTS
C. PURPOSE (TYPE): Kevco, Inc. S-T Investment Stay Pay Payroll-Mgmt
1. Balance Per Bank Statement 3,457,946 985,081 6,651 4,449,678
2. Add: Total Deposits Not Credited 0
3. Subtract: Outstanding Checks 0
4. Other Reconciling Items 150,000 150,000
5. Month End Balance Per Books 3,457,946 1,135,081 6,651 4,599,678
6. Number of Last Check Written N/A N/A N/A
INVESTMENT ACCOUNTS
DATE OF TYPE OF PURCHASE CURRENT
BANK, ACCOUNT NAME & NUMBER PURCHASE INSTRUMENT PRICE VALUE
- --------------------------- -------- ---------- -------- -------
A.
B.
C.
D.
TOTAL OTHER INVESTMENT
ACCOUNTS - LINE 10 0 0
CASE NAME: KEVCO MANAGEMENT, INC. 2ND SUPPLEMENT TO
CASE NUMBER: 401-40788-BJH-11 ACCRUAL BASIS - 5
MONTH: JUNE-01
------------------------
BANK RECONCILIATIONS Account # 6 Account # 7 Account # 8
- -------------------- ----------- ----------- -----------
A. BANK: Bank of America Bank of America TOTAL
B. ACCOUNT NUMBER: 1295027040 3750768628 OTHER BANK
ACCOUNTS
C. PURPOSE (TYPE): Payroll-Dist Payroll-MFG
1. Balance Per Bank Statement 18,975 4,960 23,935
2. Add: Total Deposits Not Credited 0
3. Subtract: Outstanding Checks (9,754) (9,754)
4. Other Reconciling Items (20,832) (20,832)
5. Month End Balance Per Books (11,611) 4,960 (6,651)
6. Number of Last Check Written N/A N/A N/A
INVESTMENT ACCOUNTS
DATE OF TYPE OF PURCHASE CURRENT
BANK, ACCOUNT NAME & NUMBER PURCHASE INSTRUMENT PRICE VALUE
- --------------------------- -------- ---------- -------- -------
A.
B.
C.
D.
TOTAL OTHER INVESTMENT
ACCOUNTS - LINE 10 0 0
CASE NAME: KEVCO MANAGEMENT, INC. ACCRUAL BASIS - 6
CASE NUMBER: 401-40788-BJH-11
MONTH: JUNE-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. 143 383
2. Joe Tomczak Expense Reimb. 0 626
3. John Wittig Expense Reimb. 0 263
4. Sharon Romere Payroll 7,692 38,461
5. Joe Tomczak Payroll 100,961 177,884
6. John Wittig Payroll 13,462 66,635
7. Will Simpson Payroll 9,615 47,866
Other (see attached) 66,723 85,723
8. Total Payments To
Insiders 198,596 417,841
PROFESSIONALS
DATE OF
COURT ORDER TOTAL
AUTHORIZING AMOUNT TOTAL PAID INCURRED
NAME PAYMENT APPROVED AMOUNT PAID TO DATE & UNPAID*
---- ----------- -------- ----------- ---------- ---------
1. Haynes and Boone 3/20/01 700,154 700,154 700,154 23,657
2. Lain, Faulkner & Co., P.C. 3/20/01 140,150 46,592 140,150 84,118
3. Baker & McKenzie 3/20/01 93,418 93,418 93,418 0
4.
5. (Attach List)
6. Total Payments To
Professionals 933,722 840,164 933,722 107,775
* Include all fees incurred, both approved and unapproved
POST PETITION STATUS OF SECURED NOTES, LEASES PAYABLE AND ADEQUATE
PROTECTION PAYMENTS
SCHEDULED TOTAL
MONTHLY UNPAID
PAYMENTS AMOUNTS PAID POST
NAME OF CREDITOR DUE DURING MONTH PETITION
---------------- --------- ------------ ----------
1. Bank of America (FOOTNOTE) N/A 23,200,207 15,018,882
2. Leases Payable (FOOTNOTE) (Not Available)
3.
4.
5. (Attach List)
6. TOTAL 0 23,200,207 15,018,882
This form x does does not have related footnotes on Footnotes Supplement.
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CASE NAME: KEVCO MANAGEMENT, INC. SUPPLEMENT TO
CASE NUMBER: 401-40788-BJH-11 ACCRUAL BASIS - 6
MONTH: JUNE-01
----------------------
PAYMENTS TO INSIDERS AND PROFESSIONALS
INSIDERS
TYPE OF AMOUNT TOTAL PAID
NAME PAYMENT PAID TO DATE
---- --------------- ------- ----------
A. Bill Estes Director's Fees 6,500 13,000
B. Peter McKee Director's Fees 6,000 12,000
C. Richard Nevins Director's Fees 6,500 13,000
D. Wingate Partners Management Fee 44,695 44,695
E. Wingate Partners Expense Reimb. 3,028 3,028
F.
G.
H.
TOTAL OTHER PAYMENTS
TO INSIDERS - LINE 5 66,723 85,723
PROFESSIONALS
DATE OF
COURT ORDER TOTAL
AUTHORIZING AMOUNT AMOUNT TOTAL PAID INCURRED
NAME PAYMENT APPROVED PAID TO DATE & UNPAID*
---- ------------ -------- ------ ---------- ---------
A.
B.
C.
D.
E.
F.
G.
H.
TOTAL OTHER PAYMENTS
TO PROFESSIONALS-LINE
* 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
---------------- --------- ------- --------
A.
B.
C.
D.
E.
STATUS OF OTHER CREDITORS - LINE 5
CASE NAME: KEVCO MANAGEMENT, INC. ACCRUAL BASIS - 7
CASE NUMBER: 401-40788-BJH-11
MONTH: JUNE-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 5/29/00-9/1/01 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 Insurance 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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CASE NAME: KEVCO MANAGEMENT, INC. FOOTNOTES SUPPLEMENT
CASE NUMBER: 401-40788-BJH-11 ACCRUAL BASIS
MONTH: JUNE-01
---------------------
ACCRUAL
BASIS
FORM
NUMBER LINE NUMBER FOOTNOTE/EXPLANATION
- ------ ----------- --------------------
1 1 Pursuant to the February 12, 2001 Order (1) Authorizing Continued Use of
3 1 Existing Forms and Records; (2) Authorizing Maintenance of Existing
5 13 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. Prepaid 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 Distribution, LP
7 3 (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). Changes in
intercompany have not been reflected as post-petition assets and liabilities.
1 15A Adjustments to equity are due to secured debt reductions pursuant to the
1 32 sales of Kevco Manufacturing, LP's operating divisions, the asset sale of the
South Region of Kevco Distribution, as well as direct cash payments
(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 based on
2 17A 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.
1 1 (A) Pursuant to an Asset Purchase Agreement approved by the Court on
1 24 February 23, 2001 and effective as of the same date among Kevco, Inc.,
6 1 Kevco Manufacturing, LP, Wingate Management Co. II, LP and Adorn LLC,
7 4 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.
CASE NAME: KEVCO MANAGEMENT, INC. FOOTNOTES SUPPLEMENT
CASE NUMBER: 401-40788-BJH-11 ACCRUAL BASIS
MONTH: JUNE-01
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ACCRUAL
BASIS
FORM
NUMBER LINE NUMBER FOOTNOTE/EXPLANATION
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(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 and $10
million during June 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.
(E) Pursuant to an Asset Purchase Agreement approved by the Court on
May 21, 2001 and effective June 1, 2001, Drew Industries Incorporated
purchased substantially all of the assets used by the Better Bath Division
of Kevco Manufacturing, LP. Approximately $8 million of the sales proceeds
were paid directly to Bank of America thereby reducing pre-petition secured debt.
(F) Pursuant to an Asset Purchase Agreement approved by the Court on
May 21, 2001 and effective June 1, 2001, Duo-Form Acquisition
Corporation purchased substantially all of the assets used by the
Duo-Form Division of Kevco Manufacturing, LP. Approximately $5 million
of the sales proceeds were paid directly to Bank of America thereby
reducing 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 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.