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: JUNE 30, 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
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Original Signature of Responsible Party Title
WILFORD W. SIMPSON AUGUST 24, 2001
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Printed Name of Responsible Party Date
PREPARER:
/s/ Dennis S. Faulkner ACCOUNTANT FOR DEBTOR
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Original Signature of Preparer Title
DENNIS S. FAULKNER AUGUST 24, 2001
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Printed Name of Preparer Date
CASE NAME: KEVCO GP, INC. ACCRUAL BASIS - 1
CASE NUMBER: 401-40786-BJH-11
COMPARATIVE BALANCE SHEET
SCHEDULED MONTH MONTH
ASSETS AMOUNT MAY-01 JUNE-01 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) 360,837 360,837 360,837 0
16. Total Assets 360,837 360,837 360,837 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 15,018,882
25. Priority Debt
26. Unsecured Debt
27. Other (Attach List) 128,815,071 128,815,071 128,815,071 0
28. Total Pre Petition Liabilities 204,700,135 167,034,160 143,833,953 0
29. Total Liabilities 204,700,135 167,034,160 143,833,953 0
EQUITY
30. Pre Petition Owners' Equity (204,339,298) (204,339,298)
31. Post Petition Cumulative Profit Or (Loss)
32. Direct Charges To Equity (Attach Explanation) (FOOTNOTE) 37,665,975 60,866,182
33. Total Equity (166,673,323) (143,473,116) 0
34. Total Liabilities and Equity 360,837 360,837 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 MONTH
ASSETS AMOUNT MAY-01 JUNE-01 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 360,837 360,837 360,837
B.
C.
D.
E.
TOTAL OTHER ASSETS - LINE 15 360,837 360,837 360,837 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) 315,071 315,071 315,071
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 27 128,815,071 128,815,071 128,815,071 0
CASE NAME: KEVCO GP, INC. ACCRUAL BASIS - 2
CASE NUMBER: 401-40786-BJH-11
INCOME STATEMENT
MONTH MONTH QUARTER
REVENUES MAY-01 JUNE-01 MONTH TOTAL
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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 MONTH QUARTER
DISBURSEMENTS MAY-01 JUNE-01 MONTH TOTAL
- ----------------- ------ ------- ----- -------
1. Cash - Beginning Of Month
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 does x does not have related footnotes on Footnotes Supplement.
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CASE NAME: KEVCO GP, INC. ACCRUAL BASIS - 4
CASE NUMBER: 401-40786-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
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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
STATUS OF POST PETITION TAXES MONTH: JUNE-01
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AMOUNT
BEGINNING TAX WITHHELD AND/OR ENDING TAX
FEDERAL LIABILITY* 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: JUNE-01
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BANK RECONCILIATIONS Account # 1 Account # 2
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A. BANK: Other Accounts TOTAL
(Attach List)
B. ACCOUNT NUMBER:
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: JUNE-01
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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
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1. Bank of America 23,200,207 15,018,882
2.
3.
4.
5. (Attach List) 0 0 0
6. TOTAL 0 23,200,207 15,018,882
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: JUNE-01
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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)
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
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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: JUNE-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 approved by the Court on
7 4 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 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
CASE NAME: KEVCO GP, INC. FOOTNOTES SUPPLEMENT
CASE NUMBER: 401-40786-BJH-11 ACCRUAL BASIS
MONTH: JUNE-01
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ACCRUAL
BASIS
FORM
NUMBER LINE NUMBER FOOTNOTE / EXPLANATION
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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 Kevco Manufacturing, L.P.'s operating divisions, the
asset sale of the South Region of Kevco Distribution 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.