EXHIBIT 99.1
UNITED STATES BANKRUPTCY COURT
SOUTHERN DISTRICT OF TEXAS
HOUSTON DIVISION
<Table>
<Caption>
CASE NAME: AMERICAN HOMESTAR CORPORATION PETITION DATE: JANUARY 11, 2001
CASE NUMBER: 01-80017-G3-11
MONTHLY OPERATING REPORT SUMMARY FOR MONTH SEPTEMBER YEAR 2001
--------- ----
MONTH JANUARY FEBRUARY MARCH APRIL MAY
----- --------- ---------- --------- --------- ---------
REVENUES (MOR-6) -- -- -- -- --
INCOME BEFORE INT, DEPREC./TAX (MOR-6) (458,477) (7,597,508) 2,466,066 (528,604) 8,760,120
NET INCOME (LOSS) (MOR-6) (557,303) (7,620,550) 2,447,935 (581,420) 8,693,336
PAYMENTS TO INSIDERS (MOR-9) 20,770 41,695 64,327 33,543 31,233
PAYMENTS TO PROFESSIONALS (MOR-9) -- -- 110,873 217,760 385,339
TOTAL DISBURSEMENTS (MOR-8) 1,753,416 3,709,031 4,523,046 3,750,247 3,527,698
<Caption>
MONTH JUNE JULY AUGUST SEPTEMBER
----- ----------- --------- --------- ----------
REVENUES (MOR-6) -- -- --
INCOME BEFORE INT, DEPREC./TAX (MOR-6) 3,505,558 (426,458) (884,323) (1,028,048)
NET INCOME (LOSS) (MOR-6) (51,160,341) (389,131) (868,885) (1,020,924)
PAYMENTS TO INSIDERS (MOR-9) 32,079 29,538 44,308 29,538
PAYMENTS TO PROFESSIONALS (MOR-9) 290,257 229,508 364,167 403,236
TOTAL DISBURSEMENTS (MOR-8) 3,179,975 3,125,232 1,317,335 554,888
</Table>
*** The ORIGINAL of this document MUST BE FILED with the United States
Bankruptcy Court and a COPY MUST BE SENT to the United States Trustee ***
- --------------------------------------------------------------------------------
REQUIRED INSURANCE MAINTAINED
AS OF SIGNATURE DATE
<Table>
<Caption>
EXP.
DATE
----
CASUALTY YES (X) NO ( ) 06/30/02
LIABILITY YES (X) NO ( ) 06/30/02
VEHICLE YES (X) NO ( ) 06/30/02
WORKER'S YES (X) NO ( ) 03/27/02
OTHER - DIRECTOR/OFFICER YES (X) NO ( ) 01/23/02
</Table>
- --------------------------------------------------------------------------------
ATTORNEY NAME:
FIRM: Floyd, Isgur, Rios & Warlich, P.C.
Address: 700 Louisiana, Suite 4600
Address:
City, State, ZIP: Houston, TX 77002-2732
Telephone: 713-222-1470
Fax: 713-222-1475
- --------------------------------------------------------------------------------
<Table>
<Caption>
CIRCLE ONE
Are all accounts receivable being collected within terms? YES NO
Are all posted-petition liabilities, including taxes,
being paid within terms? YES NO
Have any pre-petition liabilities been paid? YES NO
If so, describe. PURSUANT TO COURT ORDER AUTHORIZING
PAYMENTS OF PRE-PETITION WAGES, SALARIES, COMMISSIONS AND
COMPENSATION SIGNED JANUARY 11, 2001.
Are all funds received being deposited into DIP bank accounts? YES NO
Were any assets disposed of outside the normal course of business? YES NO
If so, describe.
------------------------------------------------
- -----------------------------------------------------------------.
Are all U.S. Trustee Quarterly Fee Payments current? YES NO
What is the status of your Plan of Reorganization? PLAN OF REORGANIZATION
CONFIRMED BY COURT ON AUGUST 14, 2001. EFFECTIVE DATE OF REORGANIZATION -
OCTOBER 3, 2001.
</Table>
I certify under penalty of perjury that the
following complete Monthly Operating Report
(MOR), consisting of MOR-1 through
MOR-9 plus attachments, is true and correct.
SIGNED /s/ CRAIG A. REYNOLDS
-------------------------------------
TITLE Vice President of Finance
-------------------------------------
MOR-1
CASE NAME: AMERICAN HOMESTAR CORPORATION CASE NUMBER: 01-80017-G3-11
COMPARATIVE BALANCE SHEETS
<Table>
<Caption>
MONTH MONTH MONTH MONTH MONTH
ASSETS FILING DATE* JANUARY FEBRUARY MARCH APRIL MAY
------ ------------ ------------ ------------ ------------ ------------ ------------
CURRENT ASSETS
Cash 10,826,806 8,602,135 12,650,553 14,474,259 15,437,099 14,090,262
Accounts Receivable, Net 481,397 221,175 8,727 10,188 3,563 3,113
Inventory: Lower of Cost or Market -- -- -- -- -- --
Prepaid Expenses 1,728,003 1,921,279 1,650,505 1,475,013 595,209 384,796
Investments -- -- -- -- -- --
Other -- -- -- -- -- --
------------ ------------ ------------ ------------ ------------ ------------
TOTAL CURRENT ASSETS 13,036,207 10,744,589 14,309,785 15,959,459 16,035,870 14,478,171
============ ============ ============ ============ ============ ============
PROPERTY, PLANT&EQUIP, @ COST 7,776,657 7,776,657 7,785,282 7,785,282 7,785,282 7,795,866
Less Accumulated Depreciation 2,865,139 2,934,611 3,004,007 3,073,402 3,143,140 3,213,031
Less Reserve for Impairment 2,353,195
------------ ------------ ------------ ------------ ------------ ------------
Net Book Value of PP & E 4,911,517 4,842,046 4,781,275 4,711,880 4,642,142 2,229,640
============ ============ ============ ============ ============ ============
OTHER ASSETS:
1. Tax Deposits -- -- -- -- -- --
2. Investments in Subs 25,311,823 25,311,823 19,419,023 19,418,023 19,419,023 19,419,023
3. Deposits 1,080 1,080 -- -- 640 640
4. Note Receivable 6,633,399 6,633,399 -- 1,260,000 1,260,000 1,260,000
5. Deferred Tax Asset -- -- -- -- --
6. Goodwill 65,257 65,033 64,809 64,809 64,809 --
7. Debt Issue Costs 1,272,102 1,249,194 -- -- -- --
8. Other Assets 2,884,023 2,884,023 2,884,023 2,884,023 2,884,023 --
9. Intercompany - Non Filing Companies 27,032,128 27,507,700 27,603,466 27,606,847 27,594,826 27,619,421
10. Intercompany 121,471,410 120,970,221 121,153,817 121,153,817 122,085,194 122,085,194
11. Post-Petition Intercompany -- 2,112,619 3,788,280 3,909,540 3,360,849 4,188,262
------------ ------------ ------------ ------------ ------------ ------------
TOTAL ASSETS 202,618,946 202,321,726 194,004,477 196,968,398 197,347,377 191,280,351
============ ============ ============ ============ ============ ============
<Caption>
MONTH MONTH MONTH MONTH
ASSETS JUNE JULY AUGUST SEPTEMBER
------ ------------ ------------ ------------ ------------
CURRENT ASSETS
Cash 11,802,861 11,103,134 10,616,892 9,495,759
Accounts Receivable, Net 3,113 3,113 3,113 3,113
Inventory: Lower of Cost or Market -- -- -- --
Prepaid Expenses 378,599 357,184 349,451 333,529
Investments -- -- -- --
Other -- -- -- --
------------ ------------ ------------ ------------
TOTAL CURRENT ASSETS 12,184,572 11,463,430 10,969,456 9,832,401
============ ============ ============ ============
PROPERTY, PLANT&EQUIP, @ COST 7,795,866 7,795,866 7,795,866 7,795,866
Less Accumulated Depreciation 3,282,746 3,352,377 3,422,008 3,489,410
Less Reserve for Impairment 2,294,109 2,235,024 2,175,938 2,116,853
------------ ------------ ------------ ------------
Net Book Value of PP & E 2,219,010 2,208,466 2,197,920 2,189,604
============ ============ ============ ============
OTHER ASSETS:
1. Tax Deposits -- -- -- --
2. Investments in Subs (35,317,126) (35,317,126) (35,317,126) (35,598,707)
3. Deposits 478,450 478,951 477,951 477,951
4. Note Receivable 1,260,000 1,260,000 1,060,000 1,060,000
5. Deferred Tax Asset -- -- --
6. Goodwill -- -- -- --
7. Debt Issue Costs -- -- -- --
8. Other Assets -- -- -- --
9. Intercompany - Non Filing Companies 26,747,548 26,749,701 26,752,206 26,761,276
10. Intercompany 122,085,194 122,085,194 122,085,194 122,085,194
11. Post-Petition Intercompany 4,075,326 4,338,360 4,184,461 3,771,311
------------ ------------ ------------ ------------
TOTAL ASSETS 133,732,975 133,266,976 132,410,063 130,579,029
============ ============ ============ ============
</Table>
* Per Schedules and Statement of Affairs
MOR-2
CASE NAME: AMERICAN HOMESTAR CORPORATION CASE NUMBER: 01-80017-G3-11
COMPARATIVE BALANCE SHEETS
<Table>
<Caption>
LIABILITIES & OWNER'S MONTH MONTH MONTH MONTH MONTH
EQUITY FILING DATE* JANUARY FEBRUARY MARCH APRIL MAY
- --------------------- ------------ ----------- ----------- ----------- ----------- -----------
LIABILITIES:
POST-PETITION LIABILITIES (MOR-4) 292,554 823,632 1,282,312 1,571,983 2,163,717
PRE-PETITION LIABILITIES:
Notes Payable - Secured -- -- -- -- -- --
Priority Debt 136,332 97,001 13,120 13,120 13,120 13,120
Federal Income Tax 14,634,277 14,634,277 14,634,277 14,634,277 15,352,097 --
FICA/withholding -- -- -- -- -- --
Unsecured Debt 122,208,042 122,214,902 121,071,005 121,129,313 121,081,220 121,081,220
Other -- -- -- -- -- --
------------ ----------- ----------- ----------- ----------- -----------
TOTAL PRE-PETITION LIABILITIES 136,978,651 136,946,180 135,718,402 135,776,709 136,446,437 121,094,340
------------ ----------- ----------- ----------- ----------- -----------
TOTAL LIABILITIES 136,978,651 137,238,734 136,542,035 137,059,021 138,018,419 123,258,058
============ =========== =========== =========== =========== ===========
OWNER'S EQUITY (DEFICIT):
Preferred Stock 6,110,004 6,110,004 6,110,004 6,110,004 6,110,004 6,110,004
Common Stock 921,184 921,184 921,184 921,184 921,184 921,184
ADDITIONAL PAID-IN CAPITAL 57,424,278 57,424,278 57,424,278 57,424,278 57,424,278 57,424,278
RETAINED EARNINGS: FILING DATE 1,184,829 1,184,829 1,184,829 1,184,829 1,184,829 1,184,829
RETAINED EARNINGS: POST FILING DATE -- (557,303) (8,177,852) (5,729,918) (6,311,338) 2,381,998
------------ ----------- ----------- ----------- ----------- -----------
TOTAL OWNER'S EQUITY (NET WORTH) 65,640,295 65,082,992 57,462,443 59,910,377 59,328,957 68,022,293
------------ ----------- ----------- ----------- ----------- -----------
TOTAL LIABILITIES &
OWNER'S EQUITY 202,618,946 202,321,726 194,004,477 196,969,398 197,347,377 191,280,351
============ =========== =========== =========== =========== ===========
<Caption>
LIABILITIES & OWNER'S MONTH MONTH MONTH MONTH
EQUITY JUNE JULY AUGUST SEPTEMBER
- --------------------- ----------- ----------- ----------- -----------
LIABILITIES:
POST-PETITION LIABILITIES (MOR-4) 1,396,219 1,318,695 1,325,666 1,215,556
PRE-PETITION LIABILITIES:
Notes Payable - Secured -- -- -- --
Priority Debt 13,120 13,120 13,120 13,120
Federal Income Tax -- -- -- --
FICA/withholding -- -- -- --
Unsecured Debt 119,961,684 119,961,684 119,966,684 119,266,684
Other -- -- -- --
----------- ----------- ----------- -----------
TOTAL PRE-PETITION LIABILITIES 119,974,804 119,974,804 119,979,804 119,279,804
----------- ----------- ----------- -----------
TOTAL LIABILITIES 121,371,024 121,293,499 121,305,470 120,495,360
=========== =========== =========== ===========
OWNER'S EQUITY (DEFICIT):
Preferred Stock 1,610,004 1,610,004 1,610,004 1,610,004
Common Stock 921,184 921,184 921,184 921,184
ADDITIONAL PAID-IN CAPITAL 57,424,278 57,424,278 57,424,278 57,424,278
RETAINED EARNINGS: FILING DATE 1,184,829 1,184,829 1,184,829 1,184,829
RETAINED EARNINGS: POST FILING DATE (48,778,344) (49,166,818) (50,035,702) (50,035,702)
----------- ----------- ----------- -----------
TOTAL OWNER'S EQUITY (NET WORTH) 12,361,952 11,973,477 11,104,593 10,083,669
----------- ----------- ----------- -----------
TOTAL LIABILITIES &
OWNER'S EQUITY 133,732,975 133,266,976 132,410,063 130,579,029
=========== =========== =========== ===========
</Table>
* Per Schedules and Statement of Affairs
MOR-3
CASE NAME: AMERICAN HOMESTAR CORPORATION CASE NUMBER: 01-80017-G3-11
SCHEDULE OF POST-PETITION LIABILITIES
<Table>
<Caption>
MONTH MONTH MONTH MONTH MONTH
JANUARY FEBRUARY MARCH APRIL MAY
---------- ---------- --------- --------- ---------
TRADE ACCOUNTS PAYABLE 68,476 784,942 1,180,552 1,480,783 2,083,742
---------- ---------- --------- --------- ---------
TAX PAYABLE
Federal Payroll Taxes 6,976 15,543 55,158 57,038 42,081
State Payroll & Sales -- -- -- -- --
Ad Valorem Taxes -- -- -- -- --
Other Taxes -- -- -- -- --
---------- ---------- --------- --------- ---------
TOTAL TAXES PAYABLE 6,976 15,543 55,158 57,038 42,081
========== ========== ========= ========= =========
SECURED DEBT POST-PETITION -- -- -- -- --
ACCRUED INTEREST PAYABLE -- -- -- -- --
* ACCRUED PROFESSIONAL FEES 217,103 23,148 37,192 56,120 57,252
OTHER ACCRUED LIABILITIES:
1. Salaries -- -- -- (21,958) (19,357)
2. Other -- -- 9,410 -- --
3. -- -- -- -- --
---------- ---------- --------- --------- ---------
TOTAL POST-PETITION LIABILITIES (MOR-3) 292,554 823,632 1,282,312 1,571,983 2,163,717
========== ========== ========= ========= =========
<Caption>
MONTH MONTH MONTH MONTH
JUNE JULY AUGUST SEPTEMBER
--------- --------- --------- ---------
TRADE ACCOUNTS PAYABLE 1,301,898 1,226,432 1,240,800 1,107,867
--------- --------- --------- ---------
TAX PAYABLE
Federal Payroll Taxes 42,127 42,057 58,422 59,885
State Payroll & Sales -- -- -- --
Ad Valorem Taxes -- -- -- --
Other Taxes -- -- -- --
--------- --------- --------- ---------
TOTAL TAXES PAYABLE 42,127 42,057 58,422 59,885
========= ========= ========= =========
SECURED DEBT POST-PETITION
ACCRUED INTEREST PAYABLE
* ACCRUED PROFESSIONAL FEES 42,951 42,276 33,771 35,155
OTHER ACCRUED LIABILITIES:
1. Salaries 9,242 7,929 (7,328) 12,649
2. Other -- -- -- --
3. -- -- -- --
--------- --------- --------- ---------
TOTAL POST-PETITION LIABILITIES (MOR-3) 1,396,219 1,318,695 1,325,666 1,215,556
========= ========= ========= =========
</Table>
* Payment Requires Court Approval.
MOR-4
CASE NAME: AMERICAN HOMESTAR CORPORATION CASE NUMBER: 01-80017-G3-11
AGING OF POST-PETITION LIABILITIES
MONTH OF SEPTEMBER 2001
<Table>
<Caption>
AD-VALOREM,
DAYS TOTAL TRADE ACCTS FED TAXES STATE TAXES OTHER TAXES OTHER
---- --------- ----------- --------- ----------- ----------- -----
0-30 1,215,556 1,107,867 59,885 35,155 -- 12,650
31-60 --
61-90 --
91 + --
TOTAL 1,215,556 1,107,867 59,885 35,155 -- 12,650
</Table>
AGING OF ACCOUNTS RECEIVABLE
<Table>
<Caption>
MONTH JANUARY FEBRUARY MARCH APRIL MAY
----- ------- -------- ------ ----- -----
0-30 DAYS -- -- 1,461 -- --
31-60 DAYS -- -- -- -- --
61-90 DAYS -- -- -- -- --
91 + DAYS 8,727 8,727 8,727 3,563 3,113
TOTAL 8,727 8,727 10,188 3,563 3,113
<Caption>
MONTH JUNE JULY AUGUST SEPTEMBER
----- ----- ----- ------ ---------
0-30 DAYS -- -- -- --
31-60 DAYS -- -- -- --
61-90 DAYS -- -- -- --
91 + DAYS 3,113 3,113 3,113 3,113
TOTAL 3,113 3,113 3,113 3,113
</Table>
MOR-5
CASE NAME: AMERICAN HOMESTAR CORPORATION CASE NUMBER: 01-80017-G3-11
STATEMENT OF INCOME (LOSS)
<Table>
<Caption>
MONTH JANUARY FEBRUARY MARCH APRIL MAY
----- --------- ---------- ---------- ---------- ----------
REVENUES (MOR-1) -- -- --
TOTAL COST OF REVENUES -- -- --
GROSS PROFIT -- -- --
OPERATING EXPENSES:
Selling & Marketing 24,119 -- --
General & Administrative 36,225 379,810 139,161 175,673 155,676
Insiders Compensation 20,770 41,695 64,327 33,543 31,223
Professional Fees 377,363 613,178 440,446 319,388 392,156
Impairment of Assets 6,562,825 (3,110,000) -- (9,339,175)
Other (attach list) -- -- -- --
--------- ---------- ---------- ---------- ----------
TOTAL OPERATING EXPENSES 458,477 7,597,508 (2,466,066) 528,604 (8,760,120)
========= ========== ========== ========== ==========
INCOME BEFORE INT, DEPR/TAX (MOR-1) (458,477) (7,597,508) 2,466,066 (528,604) 8,760,120
========= ========== ========== ========== ==========
INTEREST EXPENSE 29,354 -- -- -- --
DEPRECIATION 69,472 69,619 69,395 69,738 69,892
OTHER (INCOME) EXPENSE * -- (46,577) (51,264) (16,922) (3,108)
OTHER ITEMS ** -- -- -- -- --
--------- ---------- ---------- ---------- ----------
TOTAL INT, DEPR & OTHER ITEMS 98,826 23,042 18,131 52,816 66,784
--------- ---------- ---------- ---------- ----------
NET INCOME BEFORE TAXES (557,303) (7,620,550) 2,447,935 (581,420) 8,693,336
========= ========== ========== ========== ==========
FEDERAL INCOME TAXES -- -- -- -- --
--------- ---------- ---------- ---------- ----------
NET INCOME (LOSS) (MOR-1) (557,303) (7,620,550) 2,447,935 (581,420) 8,693,336
========= ========== ========== ========== ==========
<Caption>
MONTH JUNE JULY AUGUST SEPTEMBER FILING TO DATE
----- ---------- ---------- --------- ---------- --------------
REVENUES (MOR-1) -- -- -- -- --
TOTAL COST OF REVENUES -- -- -- -- --
GROSS PROFIT -- -- -- -- --
OPERATING EXPENSES:
Selling & Marketing -- -- -- -- --
General & Administrative 172,109 150,102 178,981 473,131 1,824,641
Insiders Compensation 32,079 29,538 44,308 29,538 306,252
Professional Fees 790,254 246,818 661,034 25,000 3,488,274
Impairment of Assets (4,500,000) 500,379 (9,885,971)
Other (attach list) --
--
---------- ---------- --------- ---------- -----------
TOTAL OPERATING EXPENSES (3,505,558) 426,458 884,323 1,028,048 (3,238,755)
========== ========== ========= ========== ===========
INCOME BEFORE INT, DEPR/TAX (MOR-1) 3,505,558 (426,458) (884,323) (1,028,048) 3,238,755
========== ========== ========= ========== ===========
INTEREST EXPENSE -- -- (25,983) (15,016) (40,999)
DEPRECIATION 10,630 10,545 10,545 7,892 318,256
OTHER (INCOME) EXPENSE * (80,879) (47,872) -- -- (246,622)
OTHER ITEMS ** 54,736,148 54,736,148
---------- ---------- --------- ---------- -----------
TOTAL INT, DEPR & OTHER ITEMS 54,665,899 (37,327) (15,438) (7,124) 54,759,659
---------- ---------- --------- ---------- -----------
NET INCOME BEFORE TAXES (51,160,341) (389,131) (868,885) (1,020,924) (51,520,904)
========== ========== ========= ========== ===========
FEDERAL INCOME TAXES -- -- -- -- --
---------- ---------- --------- ---------- -----------
NET INCOME (LOSS) (MOR-1) (51,160,341) (389,131) (868,885) (1,020,924) (51,520,904)
========== ========== ========= ========== ===========
</Table>
Accrual Accounting Required, Otherwise Footnote With Explanation
* Footnote Mandatory
** REPRESENTS ADJUSTMENT OF INVESTMENT IN SUBSIDIARIES TO REFLECT ACTUAL EQUITY
IN THOSE SUBSIDIARIES
MOR-6
CASE NAME: AMERICAN HOMESTAR CORPORATION CASE NUMBER: 01-80017-G3-11
<Table>
<Caption>
MONTH MONTH MONTH MONTH MONTH
CASH RECEIPTS AND DISBURSEMENTS JANUARY FEBRUARY MARCH APRIL MAY
- ------------------------------- ---------- --------- ---------- ---------- ----------
1. CASH - BEGINNING OF MONTH 10,826,806 8,602,135 12,650,552 14,474,258 15,437,099
RECEIPTS:
2. CASH SALES -- -- -- -- --
3. COLLECTION OF ACCOUNTS RECEIVABLE -- -- -- -- --
4. ASSOCIATES REIMBURSEMENTS -- -- 1,269,617 2,429,047 3,184,461
5. SALE OF ASSETS -- -- 1,850,000 --
6. TAX REFUNDS 109,664 -- 67,592 717,820 --
7. INTEREST INCOME -- 14,498 51,264 12,597 5,557
8. CUSTOMER DEPOSITS -- 90,082 105,284 98,682 110,827
9. INTERCOMPANY TRANSFERS 7,437,206 2,349,422 1,454,942 --
---------- --------- ---------- ---------- ----------
TOTAL RECEIPTS 109,664 7,541,786 5,693,180 4,713,088 3,300,845
========== ========= ========== ========== ==========
(Withdrawal) Contribution by Individual Debtor MFR-2*
DISBURSEMENTS:
8. NET PAYROLL 305,440 2,570,610 2,561,381 2,105,018 1,998,405
9. PAYROLL TAXES PAID 436,957 670,479 1,054,492 872,723 915,229
10. SALES, USE & OTHER TAXES PAID -- 47,603 -- 21,012
11. SECURED / RENTAL / LEASES 833,583 29,340 29,201 29,201 29,201
12. UTILITIES -- 938 2,010 11,868
13. INSURANCE 135,070 12,498 9,073 7,658 6,623
14. INVENTORY PURCHASES -- --
15. VEHICLE EXPENSES -- 468 27 439 215
16. TRAVEL ENTERTAINMENT -- 5,382 3,701 1,660 2,355
17. REPAIRS, MAINTENANCE & SUPPLIES 287 900 803 58
18. ADMINISTRATIVE & SELLING 42,078 56,089 57,563 26,224 42,781
19. INTERCOMPANY 580,919 -- -- 123,516 1,180,210
20. OTHER - ASSOCIATES COMMITMENT FEE -- 100,000 --
---------- --------- ---------- ---------- ----------
TOTAL DISBURSEMENTS FROM OPERATIONS 2,334,335 3,493,369 3,717,179 3,168,452 4,207,958
========== ========= ========== ========== ==========
21. PROFESSIONAL FEES -- 110,873 217,760 385,339
22. U.S. TRUSTEE FEES -- 29,750 1,750
23. OTHER REORGANIZATION EXPENSES (ATTACH LIST) -- 41,421 334,286 52,634
---------- --------- ---------- ---------- ----------
TOTAL DISBURSEMENTS 2,334,335 3,493,369 3,869,474 3,750,247 4,647,681
========== ========= ========== ========== ==========
24. NET CASH FLOW (2,224,671) 4,048,417 1,823,706 962,841 (1,346,837)
---------- --------- ---------- ---------- ----------
25. CASH - END OF MONTH (MOR-2) 8,602,135 12,650,552 14,474,258 15,437,099 14,090,262
========== ========= ========== ========== ==========
<Caption>
MONTH MONTH MONTH MONTH FILING TO
CASH RECEIPTS AND DISBURSEMENTS JUNE JULY AUGUST SEPTEMBER DATE
- ------------------------------- ---------- ---------- ---------- ---------- ----------
1. CASH - BEGINNING OF MONTH 14,090,262 11,802,861 11,103,135 10,616,892 8,602,135
RECEIPTS:
2. CASH SALES -- -- -- -- --
3. COLLECTION OF ACCOUNTS RECEIVABLE -- 82,939 -- 82,939
4. ASSOCIATES REIMBURSEMENTS 2,072,715 1,749,618 1,846,263 435,662 12,987,384
5. SALE OF ASSETS -- -- -- -- 1,850,000
6. TAX REFUNDS -- -- -- -- 785,412
7. INTEREST INCOME 21,526 -- -- -- 105,442
8. CUSTOMER DEPOSITS -- -- 404,875
9. INTERCOMPANY TRANSFERS -- 675,887 -- -- 11,917,457
---------- ---------- ---------- ---------- ----------
TOTAL RECEIPTS 2,094,241 2,425,505 1,929,203 435,662 28,133,509
========== ========== ========== ========== ==========
(Withdrawal) Contribution by Individual Debtor MFR-2*
DISBURSEMENTS:
8. NET PAYROLL 1,869,114 1,879,822 265,548 14,055 13,263,953
9. PAYROLL TAXES PAID 693,403 300,367 163,288 -- 4,669,982
10. SALES, USE & OTHER TAXES PAID 29,201 -- 97,816
11. SECURED / RENTAL / LEASES 29,201 30,201 29,201 205,548
12. UTILITIES 995 3,778 322 1,127 21,039
13. INSURANCE 12,207 479,482 56,492 6,365 590,398
14. INVENTORY PURCHASES -- --
15. VEHICLE EXPENSES 436 266 219 273 2,344
16. TRAVEL ENTERTAINMENT 3,303 3,733 2,145 4,101 26,380
17. REPAIRS, MAINTENANCE & SUPPLIES 304 81 76 -- 2,223
18. ADMINISTRATIVE & SELLING 83,945 36,159 49,094 27,213 379,067
19. INTERCOMPANY 1,206,539 1,098,111 1,001,909 4,610,285
20. OTHER - ASSOCIATES COMMITMENT FEE -- 100,000
---------- ---------- ---------- ---------- ----------
TOTAL DISBURSEMENTS FROM OPERATIONS 3,899,448 2,732,890 1,665,497 1,084,244 23,969,037
========== ========== ========== ========== ==========
21. PROFESSIONAL FEES 290,257 13,553 28,476 53,792 1,100,049
22. U.S. TRUSTEE FEES -- -- -- -- 31,500
23. OTHER REORGANIZATION EXPENSES (ATTACH LIST) 191,938 378,789 721,473 418,761 2,139,303
---------- ---------- ---------- ---------- ----------
TOTAL DISBURSEMENTS 4,381,642 3,125,231 2,415,446 1,556,797 27,239,888
========== ========== ========== ========== ==========
24. NET CASH FLOW (2,287,401) (699,726) (486,243) (1,121,135) 893,621
---------- ---------- ---------- ---------- ----------
25. CASH - END OF MONTH (MOR-2) 11,802,861 11,103,135 10,616,892 9,495,758 9,495,758
========== ========== ========== ========== ==========
</Table>
* applies to Individual debtor's only.
MOR-7
CASE NAME: AMERICAN HOMESTAR CORPORATION CASE NUMBER: 01-80017-G3-11
CASH ACCOUNT RECONCILIATION
MONTH OF SEPTEMBER 2001
<Table>
<Caption>
BANK NAME Bank of America Bank of America Bank of America Bank of America
- --------- --------------- --------------- --------------- ---------------
ACCOUNT NUMBER # 3755500153 # 3755500133 # 4774450348 # 2552500205
ACCOUNT TYPE OPERATING PAYROLL 401K ACCOUNT OPERATING
--------- --------- ------------ ---------
BANK BALANCE 4,183,987 225,438 -- --
DEPOSIT IN TRANSIT -- -- -- --
OUTSTANDING CHECKS -- -- -- --
--------- --------- ------------ ---------
ADJUSTED BANK BALANCE 4,183,987 225,438 -- --
========= ========= ============ =========
BEGINNING CASH - PER BOOKS 346,329 192,452 -- --
RECEIPTS 435,662 -- -- --
TRANSFERS BETWEEN ACCOUNTS 3,956,884 32,986 -- --
(WITHDRAWAL) CONTRIBUTION - BY INDIVIDUAL DEBTOR MFR-2 -- -- -- --
CHECKS / OTHER DISBURSEMENTS (554,888) -- --
--------- --------- ------------ ---------
ENDING CASH - PER BOOKS 4,183,987 225,438 -- --
========= ========= ============ =========
<Caption>
BANK NAME Bank of America Petty Cash
- --------- --------------- ----------
ACCOUNT NUMBER # 3755500153
ACCOUNT TYPE OPERATING OTHER FUNDS TOTAL ALL
--------- ----------- ----------
BANK BALANCE -- 3,500 9,495,758
DEPOSIT IN TRANSIT -- -- --
OUTSTANDING CHECKS -- -- --
--------- ----------- ----------
ADJUSTED BANK BALANCE -- 3,500 9,495,758
========= =========== ==========
BEGINNING CASH - PER BOOKS -- 3,500 10,616,892
RECEIPTS -- -- 435,662
TRANSFERS BETWEEN ACCOUNTS -- -- (1,001,909)
(WITHDRAWAL) CONTRIBUTION - BY INDIVIDUAL DEBTOR MFR-2 -- -- --
CHECKS / OTHER DISBURSEMENTS -- -- (554,888)
--------- ----------- ----------
ENDING CASH - PER BOOKS -- 3,500 9,495,758
========= =========== ==========
</Table>
MOR-8 PAGE 1 OF 2
CASE NAME: AMERICAN HOMESTAR CORPORATION CASE NUMBER: 01-80017-G3-11
CASH ACCOUNT RECONCILIATION
<Table>
<Caption>
BANK NAME Voyageur Asset Mgt. Texas Cap Bank CD'S Bank of America
- --------- ------------------- -------------- ---- ---------------
ACCOUNT NUMBER # 110167303657 CD
ACCOUNT TYPE INVESTMENT INVESTMENT INVESTMENT INVESTMENT
- ------------ ---------- ---------- ---------- ----------
BANK BALANCE -- 2,026,667 -- --
DEPOSIT IN TRANSIT -- -- -- --
OUTSTANDING CHECKS -- -- -- --
---------- ---------- ---------- ----------
ADJUSTED BANK BALANCE -- 2,026,667 -- --
========== ========== ========== ==========
BEGINNING CASH - PER BOOKS -- 2,026,667 -- --
RECEIPTS -- -- -- --
TRANSFERS BETWEEN ACCOUNTS -- -- -- --
(WITHDRAWAL) CONTRIBUTION - BY INDIVIDUAL DEBTOR MFR-2 -- -- -- --
CHECKS / OTHER DISBURSEMENTS -- -- -- --
---------- ---------- ---------- ----------
ENDING CASH - PER BOOKS -- 2,026,667 -- --
========== ========== ========== ==========
<Caption>
BANK NAME LaSalle Bank Bank of America
- --------- ------------ ---------------
ACCOUNT NUMBER
ACCOUNT TYPE INVESTMENT INVESTMENT TOTAL PAGE 2
- ------------ ---------- ---------- ------------
BANK BALANCE 3,056,166 -- 5,082,833
DEPOSIT IN TRANSIT -- -- --
OUTSTANDING CHECKS -- -- --
---------- ---------- ------------
ADJUSTED BANK BALANCE 3,056,166 -- 5,082,833
========== ========== ============
BEGINNING CASH - PER BOOKS 3,056,166 4,991,778 10,074,611
RECEIPTS -- -- --
TRANSFERS BETWEEN ACCOUNTS -- (4,991,778) (4,991,778)
(WITHDRAWAL) CONTRIBUTION - BY INDIVIDUAL DEBTOR MFR-2 -- --
CHECKS / OTHER DISBURSEMENTS -- --
---------- ---------- ------------
ENDING CASH - PER BOOKS 3,056,166 -- 5,082,833
========== ========== ============
</Table>
MOR-8 PAGE 2 OF 2
CASE NAME: AMERICAN HOMESTAR CORPORATION CASE NUMBER: 01-80017-G3-11
PAYMENTS TO INSIDERS AND PROFESSIONALS
OF THE TOTAL DISBURSEMENTS SHOWN FOR THE MONTH, LIST THE AMOUNT PAID TO INSIDERS
(AS DEFINED IN SECTION 101(30)(A)-(F) OF THE U. S. BANKRUPTCY CODE) AND THE
PROFESSIONALS. ALSO, FOR INSIDERS IDENTIFY THE TYPE OF COMPENSATION PAID (e.g.,
SALARY, COMMISSION, BONUS, ETC.) (ATTACH ADDITIONAL PAGES AS NECESSARY).
<Table>
<Caption>
MONTH MONTH MONTH MONTH MONTH
INSIDERS: NAME/POSITION/COMP TYPE JANUARY FEBRUARY MARCH APRIL MAY
- --------------------------------- ------- -------- ------- ------- -------
1. Finis F. Teeter/President, CEO, Board Chairman/Salary 13,847 27,694 42,380 21,251 19,762
2. Craig A. Reynolds/Executive VP, CFO, Secretary/Salary 6,923 14,001 21,947 12,292 11,471
3. Charles N Carney, Jr./Executive VP, Director -- --
4. Ronald McCaslin/Executive VP, Director -- --
5. Jackie H. Holland/Vice President, Treasurer -- --
6. Richard F. Dahlson/Assistant Secretary -- --
7. Kristi E. Gross/Assistant Secretary -- --
8. William O. Hunt/Director -- --
9. Millard E. Barron/Director -- --
------ ------ ------ ------ ------
TOTAL INSIDERS (MOR-1) 20,770 41,695 64,327 33,543 31,233
====== ====== ====== ====== ======
<Caption>
MONTH MONTH MONTH MONTH
INSIDERS: NAME/POSITION/COMP TYPE JUNE JULY AUGUST SEPTEMBER
- --------------------------------- ------ ------ ------- ----------
1. Finis F. Teeter/President, CEO, Board Chairman/Salary 18,462 18,462 27,692 18,462
2. Craig A. Reynolds/Executive VP, CFO, Secretary/Salary 13,617 11,077 16,615 11,077
3. Charles N. Carney, Jr./Executive VP, Director
4. Ronald McCaslin/Executive VP, Director
5. Jackie H. Holland/Vice President, Treasurer
6. Richard F. Dahlson/Assistant Secretary
7. Kristi E. Gross/Assistant Secretary
8. William O. Hunt/Director
9. Millard E. Barron/Director
------ ------ ------ ------
TOTAL INSIDERS (MOR-1) 32,079 29,538 44,308 29,538
====== ====== ====== ======
</Table>
<Table>
<Caption>
MONTH MONTH MONTH MONTH MONTH
PROFESSIONALS/NAME/ORDER DATE JANUARY FEBRUARY MARCH APRIL MAY
-------- --------- ------- ------- -------
1. Floyd, Isgur, Rios & Warlich -- -- 110,873 96,933 74,678
2. Glass & Associates -- -- 0 68,363 114,702
3. Haynes & Boone -- -- 0 22,589 108,997
4. Strategic Capital Corporation -- -- 0 29,875 51,104
5. James Boles -- -- 0 -- 35,858
6. Thomas Reno & Associates -- -- 0 -- 0
------- -------- ------- ------- -------
TOTAL PROFESSIONALS (MOR-1) -- -- 110,873 217,760 385,339
======= ======== ======= ======= =======
<Caption>
MONTH MONTH MONTH MONTH
PROFESSIONALS/NAME/ORDER DATE JUNE JULY AUGUST SEPTEMBER
- ----------------------------- ------- ------- ------- ----------
1. Floyd, Isgur, Rios & Warlich 56,467 0 141,847 163,454
2. Glass & Associates 87,940 52,820 46,958 97,251
3. Haynes & Boone 109,381 79,969 44,587 103,907
4. Strategic Capital Corporation 22,670 78,971 27,910 13,625
5. James Boles 0 0 102,864 25,000
6. Thomas Reno & Associates 13,800 17,749 0 0
------- ------- ------- -------
TOTAL PROFESSIONALS (MOR-1) 290,257 229,508 364,167 403,236
======= ======= ======= =======
</Table>
MOR-9
UNITED STATES BANKRUPTCY COURT
SOUTHERN DISTRICT OF TEXAS
HOUSTON DIVISION
<Table>
CASE NAME: AMERICAN HOMESTAR OF ALABAMA, INC. PETITION DATE: JANUARY 11, 2001
CASE NUMBER: 01-80018-G3-11
MONTHLY OPERATING REPORT SUMMARY FOR MONTH SEPTEMBER YEAR 2001
--------- ----
MONTH JANUARY FEBRUARY MARCH APRIL MAY
----- ---------- ---------- ---------- ---------- ----------
REVENUES (MOR-6) 16,344 158,292 151,335 42,979 (44,750)
INCOME BEFORE INT, DEPREC./TAX
(MOR-6) (224,396) (5,514,667) 945,204 227,954 823,789
NET INCOME (LOSS) (MOR-6) (224,396) (5,531,496) 928,443 227,954 823,789
PAYMENTS TO INSIDERS (MOR-9) -- -- -- -- --
PAYMENTS TO PROFESSIONALS (MOR-9) -- -- -- -- 5,376
TOTAL DISBURSEMENTS (MOR-8) 31,854 34,218 151,257 29,155 47,443
<Caption>
MONTH JUNE JULY AUGUST SEPTEMBER
----- ---------- ---------- ---------- ----------
REVENUES (MOR-6) -- -- -- --
INCOME BEFORE INT, DEPREC./TAX
(MOR-6) (819,488) (96,013) (51,119) (7,879)
NET INCOME (LOSS) (MOR-6) (819,488) (96,013) (51,119) (7,879)
PAYMENTS TO INSIDERS (MOR-9) -- -- -- --
PAYMENTS TO PROFESSIONALS (MOR-9) 2,244 2,418 1,259 --
TOTAL DISBURSEMENTS (MOR-8) 47,573 21,341 26,713 6,446
</Table>
*** The ORIGINAL of this document MUST BE FILED with the United States
Bankruptcy Court and a COPY MUST BE SENT to the United States Trustee ***
- --------------------------------------------------------------------------------
REQUIRED INSURANCE MAINTAINED
AS OF SIGNATURE DATE
<Table>
<Caption>
EXP.
DATE
----
CASUALTY YES (X) NO ( ) 06/30/02
LIABILITY YES (X) NO ( ) 06/30/02
VEHICLE YES (X) NO ( ) 06/30/02
WORKER'S YES (X) NO ( ) 03/28/02
OTHER - DIRECTOR/OFFICER YES (X) NO ( ) 01/23/02
</Table>
- --------------------------------------------------------------------------------
ATTORNEY NAME:
FIRM: Floyd, Isgur, Rios & Warlich, P. C.
Address: 700 Louisiana, Suite 4600
Address:
City, State, ZIP: Houston, TX 77002-2732
Telephone: 713-222-1470
Fax: 713-222-1475
- --------------------------------------------------------------------------------
<Table>
<Caption>
CIRCLE ONE
Are all accounts receivable being collected within terms? YES NO
Are all posted-petition liabilities, including taxes,
being paid within terms? YES NO
Have any pre-petition liabilities been paid? YES NO
If so, describe. PURSUANT TO COURT ORDER AUTHORIZING
PAYMENTS OF PRE-PETITION WAGES, SALARIES, COMMISSIONS AND
COMPENSATION SIGNED JANUARY 11, 2001.
Are all funds received being deposited into DIP bank accounts? YES NO
Were any assets disposed of outside the normal course of business? YES NO
If so, describe.
-------------------------------------------------
- ------------------------------------------------------------------.
Are all U.S. Trustee Quarterly Fee Payments current? YES NO
What is the status of your Plan of Reorganization? PLAN OF REORGANIZATION
CONFIRMED BY COURT ON AUGUST 14, 2001. EFFECTIVE DATE OF REORGANIZATION -
OCTOBER 3, 2001.
</Table>
I certify under penalty of perjury that the
following complete Monthly Operating Report
(MOR), consisting of MOR-1 through MOR-9
plus attachments, is true and correct.
SIGNED /s/ CRAIG A. REYNOLDS
----------------------------------------
TITLE Vice President of Finance
----------------------------------------
MOR-1
CASE NAME: AMERICAN HOMESTAR OF ALABAMA, INC. CASE NUMBER: 01-80018-G3-11
COMPARATIVE BALANCE SHEETS
<Table>
<Caption>
MONTH MONTH MONTH MONTH MONTH
ASSETS FILING DATE* JANUARY FEBRUARY MARCH APRIL MAY
------ ------------ ------------ ------------ ------------ ------------ ------------
CURRENT ASSETS
Cash 392,114 537,710 209,126 571,974 781,589 739,330
Accounts Receivable, Net 839,831 633,954 83,200 340,796 354,356 21,630
Inventory: Lower of Cost or Market 1,986,297 1,552,283 1,068,320 910,820 915,445 788,928
Prepaid Expenses -- -- -- -- -- --
Investments -- -- -- -- -- --
Other -- -- -- -- -- --
------------ ------------ ------------ ------------ ------------ ------------
TOTAL CURRENT ASSETS 3,218,242 2,723,947 1,360,646 1,823,589 2,051,389 1,549,888
============ ============ ============ ============ ============ ============
PROPERTY, PLANT&EQUIP, @ COST 12,062,898 12,062,898 12,073,952 12,073,952 12,073,952 12,073,952
Less Accumulated Depreciation 2,809,503 2,809,503 2,826,333 2,842,886 2,842,886 2,842,886
Less Impairment Reserve 4,623,810 4,623,810 4,623,810 4,231,066 4,231,066 4,231,067
------------ ------------ ------------ ------------ ------------ ------------
Net Book Value of PP & E 9,253,394 9,253,394 4,623,810 4,607,257 4,607,257 5,000,000
============ ============ ============ ============ ============ ============
OTHER ASSETS:
1. Tax Deposits -- -- -- -- -- --
2. Investments in Subs -- -- -- -- -- --
3. Deposits 485,754 485,754 485,754 485,404 485,404 --
4. Interests in Insurance Policies -- -- -- -- -- --
5. Note Receivable -- -- -- -- -- --
6. Other Assets 1,925,923 1,925,923 1,925,923 1,925,923 1,925,923 --
7. Intercompany 255,594 255,594 255,594 255,594 191,506 191,506
------------ ------------ ------------ ------------ ------------ ------------
TOTAL ASSETS 15,138,907 14,644,612 8,651,727 9,097,767 9,261,478 6,741,393
============ ============ ============ ============ ============ ============
<Caption>
MONTH MONTH MONTH MONTH
ASSETS JUNE JULY AUGUST SEPTEMBER
------ ------------ ------------ ------------ ------------
CURRENT ASSETS
Cash 585,965 518,823 552,952 606,267
Accounts Receivable, Net -- (67,159) (552,563) (565,166)
Inventory: Lower of Cost or Market 350,000 211,881 164,827 81,389
Prepaid Expenses -- 36,098 36,098 36,098
Investments -- -- -- --
Other -- -- -- --
------------ ------------ ------------ ------------
TOTAL CURRENT ASSETS 935,965 699,643 201,315 158,588
============ ============ ============ ============
PROPERTY, PLANT&EQUIP, @ COST 12,073,952 12,073,953 12,073,954 12,073,954
Less Accumulated Depreciation 2,842,886 2,842,886 2,842,886 2,842,886
Less Impairment Reserve 4,231,068 4,231,068
------------ ------------ ------------ ------------
Net Book Value of PP & E 5,000,000 5,000,000 5,000,000 5,000,000
============ ============ ============ ============
OTHER ASSETS:
1. Tax Deposits -- -- -- --
2. Investments in Subs -- -- -- --
3. Deposits -- -- 485,404 485,404
4. Interests in Insurance Policies -- -- -- --
5. Note Receivable -- -- -- --
6. Other Assets -- -- -- --
7. Intercompany -- -- -- --
------------ ------------ ------------ ------------
TOTAL ASSETS 5,935,965 5,699,643 5,686,719 5,643,991
============ ============ ============ ============
</Table>
* Per Schedules and Statement of Affairs
MOR-2
CASE NAME: AMERICAN HOMESTAR OF ALABAMA, INC. CASE NUMBER: 01-80018-G3-11
COMPARATIVE BALANCE SHEETS
<Table>
<Caption>
LIABILITIES & OWNER'S MONTH MONTH MONTH MONTH MONTH
EQUITY FILING DATE* JANUARY FEBRUARY MARCH APRIL MAY
- --------------------- ------------ ------------ ------------ ------------ ------------ ------------
LIABILITIES:
POST-PETITION LIABILITIES (MOR-4) 208,370 157,009 136,307 183,390 196,712
------------ ------------ ------------ ------------ ------------
PRE-PETITION LIABILITIES:
Notes Payable - Secured 366,463 366,463 366,463 -- -- --
Priority Debt 33,104 33,127 33,127 49,688 49,688 31,226
Federal Income Tax (725,000) (725,000) (725,000) (725,000) (725,000) --
FICA/withholding -- -- -- -- -- --
Unsecured Debt 5,819,951 5,819,951 5,470,628 5,358,829 5,293,430 1,229,695
Intercompany 24,295,133 23,816,841 23,756,135 23,756,135 23,710,209 23,710,209
Other -- -- -- -- -- --
------------ ------------ ------------ ------------ ------------ ------------
TOTAL PRE-PETITION LIABILITIES 29,789,650 29,311,382 28,901,353 28,439,652 28,328,326 24,971,130
------------ ------------ ------------ ------------ ------------ ------------
TOTAL LIABILITIES 29,789,650 29,519,752 29,058,362 28,575,959 28,511,716 25,167,842
============ ============ ============ ============ ============ ============
OWNER'S EQUITY (DEFICIT):
Preferred Stock -- -- -- -- -- --
Common Stock -- -- -- -- -- --
ADDITIONAL PAID-IN CAPITAL -- -- -- -- -- --
RETAINED EARNINGS: Filing Date (14,650,743) (14,650,743) (14,650,743) (14,650,743) (14,650,743) (14,650,743)
RETAINED EARNINGS: Post Filing Date -- (224,396) (5,755,892) (4,827,449) (4,599,495) (3,775,706)
------------ ------------ ------------ ------------ ------------ ------------
TOTAL OWNER'S EQUITY (NET WORTH) (14,650,743) (14,875,139) (20,406,635) (19,478,192) (19,250,238) (18,426,449)
------------ ------------ ------------ ------------ ------------ ------------
TOTAL LIABILITIES &
OWNER'S EQUITY 15,138,907 14,644,612 8,651,727 9,097,767 9,261,478 6,741,393
============ ============ ============ ============ ============ ============
<Caption>
LIABILITIES & OWNER'S MONTH MONTH MONTH MONTH
EQUITY JUNE JULY AUGUST SEPTEMBER
- --------------------- ------------ ------------ ------------ ------------
LIABILITIES:
POST-PETITION LIABILITIES (MOR-4) 212,516 72,108 105,462 70,683
------------ ------------ ------------ ------------
PRE-PETITION LIABILITIES:
Notes Payable - Secured -- -- -- --
Priority Debt 31,226 31,226 14,642 14,642
Federal Income Tax -- -- -- --
FICA/withholding -- -- -- --
Unsecured Debt 1,227,950 1,227,950 1,249,475 1,249,475
Intercompany 23,710,209 23,710,209 23,710,209 23,710,209
Other -- -- -- --
------------ ------------ ------------ ------------
TOTAL PRE-PETITION LIABILITIES 24,969,385 24,969,385 24,974,326 24,974,326
------------ ------------ ------------ ------------
TOTAL LIABILITIES 25,181,901 25,041,493 25,079,788 25,045,009
============ ============ ============ ============
OWNER'S EQUITY (DEFICIT):
Preferred Stock -- -- -- --
Common Stock -- -- -- --
ADDITIONAL PAID-IN CAPITAL -- -- -- --
RETAINED EARNINGS: Filing Date (14,650,743) (14,650,743) (14,650,743) (14,650,743)
RETAINED EARNINGS: Post Filing Date (4,595,194) (4,691,107) (4,742,326) (4,742,326)
------------ ------------ ------------ ------------
TOTAL OWNER'S EQUITY (NET WORTH) (19,245,937) (19,341,850) (19,393,069) (19,401,018)
------------ ------------ ------------ ------------
TOTAL LIABILITIES &
OWNER'S EQUITY 5,935,964 5,699,643 5,686,719 5,643,991
============ ============ ============ ============
</Table>
* Per Schedules and Statement of Affairs
MOR-3
CASE NAME: AMERICAN HOMESTAR OF ALABAMA, INC. CASE NUMBER: 01-80018-G3-11
SCHEDULE OF POST-PETITION LIABILITIES
<Table>
<Caption>
MONTH MONTH MONTH MONTH MONTH
JANUARY FEBRUARY MARCH APRIL MAY
---------- ---------- ---------- ---------- ----------
TRADE ACCOUNTS PAYABLE 95,397 8,722 1,311 11,465 19,643
---------- ---------- ---------- ---------- ----------
TAX PAYABLE
Federal Payroll Taxes 20,602 25,156 -- -- --
State Payroll & SALES 5,610 4,457 -- -- --
Ad Valorem Taxes -- -- -- -- --
Other Taxes -- -- -- -- --
---------- ---------- ---------- ---------- ----------
TOTAL TAXES PAYABLE 26,212 29,614 -- -- --
========== ========== ========== ========== ==========
SECURED DEBT POST-PETITION -- -- -- -- --
ACCRUED INTEREST PAYABLE -- -- -- -- --
* ACCRUED PROFESSIONAL FEES -- -- -- -- --
OTHER ACCRUED LIABILITIES:
1. Salaries 24,835 72,740 -- -- --
2. Post-petition Intercompany 61,926 45,933 134,996 171,925 177,069
3. -- -- -- -- --
---------- ---------- ---------- ---------- ----------
TOTAL POST-PETITION LIABILITIES (MOR-3) 208,370 157,009 136,307 183,390 196,712
========== ========== ========== ========== ==========
<Caption>
MONTH MONTH MONTH MONTH
JUNE JULY AUGUST SEPTEMBER
---------- ---------- ---------- ----------
TRADE ACCOUNTS PAYABLE 29,087 35,482 55,462 48,184
---------- ---------- ---------- ----------
TAX PAYABLE
Federal Payroll Taxes -- -- -- --
State Payroll & SALES -- -- -- --
Ad Valorem Taxes -- -- -- --
Other Taxes -- -- -- --
---------- ---------- ---------- ----------
TOTAL TAXES PAYABLE -- -- -- --
========== ========== ========== ==========
SECURED DEBT POST-PETITION -- -- -- --
ACCRUED INTEREST PAYABLE -- -- -- --
* ACCRUED PROFESSIONAL FEES -- -- -- --
OTHER ACCRUED LIABILITIES:
1. Salaries -- -- -- --
2. Post-petition Intercompany 183,429 36,626 50,000 22,499
3 -- -- -- --
---------- ---------- ---------- ----------
TOTAL POST-PETITION LIABILITIES (MOR-3) 212,516 72,108 105,462 70,683
========== ========== ========== ==========
</Table>
* Payment Requires Court Approval.
MOR-4
CASE NAME: AMERICAN HOMESTAR OF ALABAMA, INC. CASE NUMBER: 01-80018-G3-11
AGING OF POST-PETITION LIABILITIES
MONTH OF SEPTEMBER 2001
<Table>
<Caption>
AD-VALOREM,
DAYS TOTAL TRADE ACCTS FED TAXES STATE TAXES OTHER TAXES OTHER
---- ------ ----------- --------- ----------- ----------- ------
0-30 70,683 48,184 -- -- -- 22,499
31-60 --
61-90 --
91 + --
TOTAL 70,683 48,184 -- -- -- 22,499
</Table>
AGING OF ACCOUNTS RECEIVABLE
<Table>
<Caption>
MONTH JANUARY FEBRUARY MARCH APRIL MAY
----- ------- -------- ------- ------- ------
0-30 DAYS 16,760 -- -- -- --
31-60 DAYS 76,209 16,760 -- -- --
61-90 DAYS 201,073 66,440 -- --
91 + DAYS 339,912 -- 340,796 354,356 21,630
TOTAL 633,954 83,200 340,796 354,356 21,630
<Caption>
MONTH JUNE JULY AUGUST SEPTEMBER
----- ---- ------- -------- ---------
0-30 DAYS -- (67,159) (552,563) (565,166)
31-60 DAYS -- -- -- --
61-90 DAYS -- -- -- --
91 + DAYS -- -- -- --
TOTAL -- (67,159) (552,563) (565,166)
</Table>
MOR-5
CASE NAME: AMERICAN HOMESTAR OF ALABAMA, INC. CASE NUMBER: 01-80018-G3-11
STATEMENT OF INCOME (LOSS)
<Table>
<Caption>
MONTH JANUARY FEBRUARY MARCH APRIL MAY
----- ------------ ------------ ------------ ------------ ------------
REVENUES (MOR-1) 16,344 158,292 151,335 42,979 (44,750)
TOTAL COST OF REVENUES 134,486 175,711 466 1,444 (5,435)
GROSS PROFIT (118,142) (17,419) 150,869 41,535 (39,315)
OPERATING EXPENSES:
Selling & Marketing 57,399 171 7,290 7,691 16,078
General & Administrative 48,855 23,372 15,200 (904) 6,390
Insiders Compensation -- -- -- -- --
Professional Fees -- -- 5,469 15,496 250
Impairment of Assets 5,473,705 (822,294) (208,701) (885,822)
Other (attach list) -- -- -- -- --
------------ ------------ ------------ ------------ ------------
TOTAL OPERATING EXPENSES 106,254 5,497,248 (794,335) (186,418) (863,104)
============ ============ ============ ============ ============
INCOME BEFORE INT, DEPR/TAX (MOR-1) (224,396) (5,514,667) 945,204 227,954 823,789
============ ============ ============ ============ ============
INTEREST EXPENSE -- -- -- -- --
DEPRECIATION -- 16,829 16,761 -- --
OTHER (INCOME) EXPENSE * -- -- -- -- --
OTHER ITEMS ** -- -- -- -- --
------------ ------------ ------------ ------------ ------------
TOTAL INT, DEPR & OTHER ITEMS -- 16,829 16,761 -- --
------------ ------------ ------------ ------------ ------------
NET INCOME BEFORE TAXES (224,396) (5,531,496) 928,443 227,954 823,789
============ ============ ============ ============ ============
FEDERAL INCOME TAXES -- -- -- -- --
------------ ------------ ------------ ------------ ------------
NET INCOME (LOSS) (MOR-1) (224,396) (5,531,496) 928,443 227,954 823,789
============ ============ ============ ============ ============
<Caption>
MONTH JUNE JULY AUGUST SEPTEMBER FILING TO DATE
----- ------------ ------------ ------------ ------------ --------------
REVENUES (MOR-1) -- -- -- -- 307,856
TOTAL COST OF REVENUES 33,272 84,642 261 -- 290,361
GROSS PROFIT (33,272) (84,642) (261) -- 17,495
OPERATING EXPENSES:
Selling & Marketing 23,876 17,682 32,251 8,118 105,038
General & Administrative 3,728 3,845 3,365 (239) 54,997
Insiders Compensation -- -- -- --
Professional Fees -- -- -- 21,215
Impairment of Assets 758,612 (10,156) 15,242 -- 4,320,586
Other (attach list) -- --
--
------------ ------------ ------------ ------------ ------------
TOTAL OPERATING EXPENSES 786,216 11,371 50,858 7,879 4,501,835
============ ============ ============ ============ ============
INCOME BEFORE INT, DEPR/TAX (MOR-1) (819,488) (96,013) (51,119) (7,879) (4,433,221)
============ ============ ============ ============ ============
INTEREST EXPENSE -- -- -- -- --
DEPRECIATION -- -- -- -- 33,590
OTHER (INCOME) EXPENSE * -- -- -- -- --
OTHER ITEMS ** -- -- -- -- --
------------ ------------ ------------ ------------ ------------
TOTAL INT, DEPR & OTHER ITEMS -- -- -- -- 33,590
------------ ------------ ------------ ------------ ------------
NET INCOME BEFORE TAXES (819,488) (96,013) (51,119) (7,879) (4,466,812)
============ ============ ============ ============ ============
FEDERAL INCOME TAXES -- -- -- -- --
------------ ------------ ------------ ------------ ------------
NET INCOME (LOSS) (MOR-1) (819,488) (96,013) (51,119) (7,879) (4,466,812)
============ ============ ============ ============ ============
</Table>
Accrual Accounting Required, Otherwise Footnote With Explanation
* Footnote Mandatory
** Unusual and/or infrequent item(s) outside the ordinary course of business;
requires footnote
MOR-6
CASE NAME: AMERICAN HOMESTAR OF ALABAMA, INC. CASE NUMBER: 01-80018-G3-11
<Table>
<Caption>
MONTH MONTH MONTH MONTH MONTH
CASH RECEIPTS AND DISBURSEMENTS JANUARY FEBRUARY MARCH APRIL MAY
- ------------------------------- ---------- ---------- ---------- ---------- ----------
1. CASH - BEGINNING OF MONTH 392,114 537,710 209,126 571,974 781,589
RECEIPTS:
2. CASH SALES -- -- --
3. COLLECTION OF ACCOUNTS RECEIVABLE 168,650 215,414 124,005 60,992 10,289
4. LOANS & ADVANCES (ATTACH LIST) -- -- -- --
5. SALE OF ASSETS -- -- -- --
6. INTERCOMPANY 8,801 390,100 177,778 --
7. OTHER (ATTACH LIST) -- -- -- --
---------- ---------- ---------- ---------- ----------
TOTAL RECEIPTS 177,450 215,414 514,105 238,770 10,289
========== ========== ========== ========== ==========
(Withdrawal) Contribution by Individual Debtor MFR-2*
DISBURSEMENTS:
8. NET PAYROLL 28,173 7,792 969 -- --
9. PAYROLL TAXES PAID -- -- -- -- --
10. SALES, USE & OTHER TAXES PAID -- -- -- -- --
11. SECURED / RENTAL / LEASES -- -- 2,399 2,883 --
12. UTILITIES -- 14,114 15,477 3,599 420
13. INSURANCE 820 167 45,124 -- 30,000
14. INVENTORY PURCHASES 360 -- -- -- --
15. VEHICLE EXPENSES -- -- 3,231 13,532 --
16. TRAVEL ENTERTAINMENT 600 1,537 -- -- --
17. REPAIRS, MAINTENANCE & SUPPLIES -- -- 25,049 5,390 10,124
18. ADMINISTRATIVE & SELLING 1,901 9,879 35,172 0 198
19. INTERCOMPANY 510,510 -- -- 6,180
20. TRANSPORTATION -- -- 23,836 -- --
---------- ---------- ---------- ---------- ----------
TOTAL DISBURSEMENTS FROM OPERATIONS 31,854 543,998 151,257 25,405 46,922
========== ========== ========== ========== ==========
21. PROFESSIONAL FEES -- -- -- -- 5,376
22. U.S. TRUSTEE FEES -- -- -- 3,750 250
23. OTHER REORGANIZATION EXPENSES (ATTACH LIST) -- -- -- --
---------- ---------- ---------- ---------- ----------
TOTAL DISBURSEMENTS 31,854 543,998 151,257 29,155 52,548
========== ========== ========== ========== ==========
24. NET CASH FLOW 145,597 (328,584) 362,848 209,615 (42,259)
---------- ---------- ---------- ---------- ----------
25. CASH - END OF MONTH (MOR-2) 537,710 209,126 571,974 781,589 739,330
========== ========== ========== ========== ==========
<Caption>
MONTH MONTH MONTH MONTH FILING TO
CASH RECEIPTS AND DISBURSEMENTS JUNE JULY AUGUST SEPTEMBER DATE
- ------------------------------- ---------- ---------- ---------- ---------- ----------
1. CASH - BEGINNING OF MONTH 739,330 585,965 518,823 552,952 537,710
RECEIPTS:
2. CASH SALES --
3. COLLECTION OF ACCOUNTS RECEIVABLE 63,541 141,975 48,480 59,761 724,458
4. LOANS & ADVANCES (ATTACH LIST) -- -- -- -- --
5. SALE OF ASSETS -- -- -- -- --
6. INTERCOMPANY -- 12,361 -- 580,239
7. OTHER (ATTACH LIST) -- -- -- -- --
---------- ---------- ---------- ---------- ----------
TOTAL RECEIPTS 63,541 141,975 60,842 59,761 1,304,697
========== ========== ========== ========== ==========
(Withdrawal) Contribution by Individual Debtor MFR-2*
DISBURSEMENTS:
8. NET PAYROLL -- -- -- -- 8,761
9. PAYROLL TAXES PAID -- -- -- -- --
10. SALES, USE & OTHER TAXES PAID -- -- -- -- --
11. SECURED / RENTAL / LEASES -- -- -- -- 5,281
12. UTILITIES 5,734 2,593 2,230 69 44,235
13. INSURANCE 184 -- -- -- 75,476
14. INVENTORY PURCHASES -- 14,313 20,163 6,377 40,853
15. VEHICLE EXPENSES -- -- -- -- 16,763
16. TRAVEL ENTERTAINMENT 134 -- 1,671
17. REPAIRS, MAINTENANCE & SUPPLIES 18,100 3,061 -- 61,724
18. ADMINISTRATIVE & SELLING 330 1,702 -- -- 47,282
19. INTERCOMPANY 169,333 187,776 -- 873,799
20. TRANSPORTATION 20,168 44,004
---------- ---------- ---------- ---------- ----------
TOTAL DISBURSEMENTS FROM OPERATIONS 213,983 206,384 25,454 6,446 1,219,850
========== ========== ========== ========== ==========
21. PROFESSIONAL FEES 2,244 315 -- -- 7,935
22. U.S. TRUSTEE FEES -- -- -- -- 4,000
23. OTHER REORGANIZATION EXPENSES (ATTACH LIST) 679 2,418 1,259 -- 4,355
---------- ---------- ---------- ---------- ----------
TOTAL DISBURSEMENTS 216,906 209,117 26,713 6,446 1,236,140
========== ========== ========== ========== ==========
24. NET CASH FLOW (153,365) (67,142) 34,129 53,315 68,557
---------- ---------- ---------- ---------- ----------
25. CASH - END OF MONTH (MOR-2) 585,965 518,823 552,952 606,267 606,267
========== ========== ========== ========== ==========
</Table>
* applies to Individual debtor's only.
MOR-7
CASE NAME: AMERICAN HOMESTAR OF ALABAMA, INC. CASE NUMBER: 01-80018-G3-11
CASH ACCOUNT RECONCILIATION
MONTH OF SEPTEMBER 2001
<Table>
<Caption>
BANK NAME Bank of America Bank of America
- --------- --------------- ---------------
ACCOUNT NUMBER # 3755500263
ACCOUNT TYPE OPERATING INVESTMENT OPERATING OPERATING
------------ ------------ ------------ ------------
BANK BALANCE 611,352 (5,280) -- --
DEPOSIT IN TRANSIT -- -- -- --
OUTSTANDING CHECKS -- -- -- --
------------ ------------ ------------ ------------
ADJUSTED BANK BALANCE 611,352 -- -- --
============ ============ ============ ============
BEGINNING CASH - PER BOOKS 408,037 144,720 -- --
RECEIPTS 59,761 -- -- --
TRANSFERS BETWEEN ACCOUNTS 150,000 (150,000) -- --
(WITHDRAWAL) CONTRIBUTION - BY INDIVIDUAL DEBTOR MFR-2 -- -- -- --
CHECKS / OTHER DISBURSEMENTS (6,446) -- -- --
------------ ------------ ------------ ------------
ENDING CASH - PER BOOKS 611,352 (5,280) -- --
============ ============ ============ ============
</Table>
<Table>
<Caption>
BANK NAME Petty Cash
- --------- ------------
ACCOUNT NUMBER
GRAND
ACCOUNT TYPE PAYROLL OTHER FUNDS TOTAL
------------ ------------ ------------
BANK BALANCE 195 -- 606,267
DEPOSIT IN TRANSIT -- -- --
OUTSTANDING CHECKS -- -- --
------------ ------------ ------------
ADJUSTED BANK BALANCE 195 -- 606,267
============ ============ ============
BEGINNING CASH - PER BOOKS 195 -- 552,952
RECEIPTS -- -- 59,761
TRANSFERS BETWEEN ACCOUNTS -- -- --
(WITHDRAWAL) CONTRIBUTION - BY INDIVIDUAL DEBTOR MFR-2 -- -- --
CHECKS / OTHER DISBURSEMENTS -- -- (6,446)
------------ ------------ ------------
ENDING CASH - PER BOOKS 195 -- 606,267
============ ============ ============
</Table>
MOR-8
CASE NAME: AMERICAN HOMESTAR OF ALABAMA, INC. CASE NUMBER: 01-80018-G3-11
PAYMENTS TO INSIDERS AND PROFESSIONALS
OF THE TOTAL DISBURSEMENTS SHOWN FOR THE MONTH, LIST THE AMOUNT PAID TO INSIDERS
(AS DEFINED IN SECTION 101(30)(A)-(F) OF THE U.S. BANKRUPTCY CODE) AND THE
PROFESSIONALS. ALSO, FOR INSIDERS IDENTIFY THE TYPE OF COMPENSATION PAID (e.g.,
SALARY, COMMISSION, BONUS, ETC.) (ATTACH ADDITIONAL PAGES AS NECESSARY).
<Table>
<Caption>
MONTH MONTH MONTH MONTH MONTH
INSIDERS: NAME/POSITION/COMP TYPE JANUARY FEBRUARY MARCH APRIL MAY
- --------------------------------- ------- -------- ----- ----- -----
1. Ronald McCaslin/President -- -- -- -- --
2. Jackie Holland/Vice President -- -- -- -- --
3. Craig A. Reynolds/Secretary, Director -- -- -- -- --
4. Kristi E. Gross/Assistant Secretary -- -- -- -- --
5. Charles N. Carney, Jr./Director -- -- -- -- --
6. -- -- -- -- --
------- -------- ----- ----- -----
TOTAL INSIDERS (MOR-1) -- -- -- -- --
======= ======== ===== ===== =====
<Caption>
MONTH MONTH MONTH MONTH
INSIDERS: NAME/POSITION/COMP TYPE JUNE JULY AUGUST SEPTEMBER
- --------------------------------- ----- ----- ------ ---------
1. Ronald McCaslin/President -- -- -- --
2. Jackie Holland/Vice President -- -- -- --
3. Craig A. Reynolds/Secretary, Director -- -- -- --
4. Kristi E. Gross/Assistant Secretary -- -- -- --
5. Charles N. Carney, Jr./Director -- -- -- --
6. -- -- -- --
----- ----- ------ ---------
TOTAL INSIDERS (MOR-1) -- -- -- --
===== ===== ====== =========
</Table>
<Table>
<Caption>
MONTH MONTH MONTH MONTH MONTH
PROFESSIONALS/NAME/ORDER DATE JANUARY FEBRUARY MARCH APRIL MAY
- ----------------------------- ------- -------- ----- ----- -----
1. Floyd, Isgur, Rios & Warlich -- -- -- -- 1,414
2. Strategic Capital Corporation -- -- -- -- 3,962
3. -- -- -- -- --
4. -- -- -- -- --
5. -- -- -- -- --
6. -- -- -- -- --
------- -------- ----- ----- -----
TOTAL PROFESSIONALS (MOR-1) -- -- -- -- 5,376
======= ======== ===== ===== =====
<Caption>
MONTH MONTH MONTH MONTH
PROFESSIONALS/NAME/ORDER DATE JUNE JULY AUGUST SEPTEMBER
- ----------------------------- ----- ----- ------ ---------
1. Floyd, Isgur, Rios & Warlich 774 0 251 0
2. Strategic Capital Corporation 1,470 0 1,008 0
3. -- -- -- --
4. -- -- -- --
5. -- -- -- --
6. -- -- -- --
----- ----- ------ ---------
TOTAL PROFESSIONALS (MOR-1) 2,244 0 1,259 0
===== ===== ====== =========
</Table>
MOR-9
UNITED STATES BANKRUPTCY COURT
SOUTHERN DISTRICT OF TEXAS
HOUSTON DIVISION
<Table>
CASE NAME: AMERICAN HOMESTAR OF BURLESON, L.P. PETITION DATE: JANUARY 11, 2001
CASE NUMBER: 01-80019-G3-11
MONTHLY OPERATING REPORT SUMMARY FOR MONTH SEPTEMBER YEAR 2001
--------- ----
MONTH JANUARY FEBRUARY MARCH APRIL MAY
----- ------- -------- ----- ----- ---
REVENUES (MOR-6) 123,280 98,862 119,800 254,945 368,109
INCOME BEFORE INT, DEPREC./TAX (MOR-6) (337,458) 44,728 (50,515) (98,028) 244,781
NET INCOME (LOSS) (MOR-6) (337,458) 29,847 (65,396) (112,909) 229,900
PAYMENTS TO INSIDERS (MOR-9) -- -- -- -- --
PAYMENTS TO PROFESSIONALS (MOR-9) -- -- -- -- 3,528
TOTAL DISBURSEMENTS (MOR-8) 289,630 131,105 260,398 207,305 249,004
<Caption>
MONTH JUNE JULY AUGUST SEPTEMBER
----- ---- ---- ------ ---------
REVENUES (MOR-6) 132,030 131,725 118,347 121,388
INCOME BEFORE INT, DEPREC./TAX (MOR-6) (42,060) (158,426) (99,202) (24,346)
NET INCOME (LOSS) (MOR-6) (56,941) (173,308) (114,083) (39,227)
PAYMENTS TO INSIDERS (MOR-9) -- -- -- --
PAYMENTS TO PROFESSIONALS (MOR-9) 1,002 -- 1,095 1,512
TOTAL DISBURSEMENTS (MOR-8) 168,886 166,240 235,904 200,708
</Table>
*** The ORIGINAL of this document MUST BE FILED with the United States
Bankruptcy Court and a COPY MUST BE SENT to the United States Trustee ***
- --------------------------------------------------------------------------------
REQUIRED INSURANCE MAINTAINED
AS OF SIGNATURE DATE
<Table>
<Caption>
EXP.
DATE
----
CASUALTY YES (X) NO ( ) 06/30/02
LIABILITY YES (X) NO ( ) 06/30/02
VEHICLE YES (X) NO ( ) 06/30/02
WORKER'S YES (X) NO ( ) 05/31/02
OTHER - DIRECTOR/OFFICER YES (X) NO ( ) 01/23/02
</Table>
- --------------------------------------------------------------------------------
ATTORNEY NAME:
FIRM: Floyd, Isgur, Rios & Warlich, P. C.
Address: 700 Louisiana, Suite 4600
Address:
City, State, ZIP: Houston, TX 77002-2732
Telephone: 713-222-1470
Fax: 713-222-1475
- --------------------------------------------------------------------------------
<Table>
<Caption>
CIRCLE ONE
Are all accounts receivable being collected within terms? YES NO
Are all posted-petition liabilities, including taxes,
being paid within terms? YES NO
Have any pre-petition liabilities been paid? YES NO
If so, describe. PURSUANT TO COURT ORDER AUTHORIZING
PAYMENTS OF PRE-PETITION WAGES, SALARIES, COMMISSIONS AND
COMPENSATION SIGNED JANUARY 11, 2001.
Are all funds received being deposited into DIP bank accounts? YES NO
Were any assets disposed of outside the normal course of business? YES NO
If so, describe.
--------------------------------------------------
- ------------------------------------------------------------------.
Are all U.S. Trustee Quarterly Fee Payments current? YES NO
What is the status of your Plan of Reorganization? PLAN OF REORGANIZATION
CONFIRMED BY COURT ON AUGUST 14, 2001. EFFECTIVE DATE OF REORGANIZATION -
OCTOBER 3, 2001.
</Table>
I certify under penalty of perjury that the
following complete Monthly Operating Report
(MOR), consisting of MOR-1 through MOR-9
plus attachments, is true and correct.
SIGNED /s/ CRAIG A. REYNOLDS
-----------------------------------------
TITLE Vice President of Finance
-----------------------------------------
MOR-1
CASE NAME: AMERICAN HOMESTAR OF BURLESON, L.P. CASE NUMBER: 01-80019-G3-11
COMPARATIVE BALANCE SHEETS
<Table>
<Caption>
MONTH MONTH MONTH MONTH MONTH
ASSETS FILING DATE* JANUARY FEBRUARY MARCH APRIL MAY
------ ------------ --------- --------- --------- --------- ---------
CURRENT ASSETS
Cash 363,659 130,741 187,325 2,605 21,731 39,630
Accounts Receivable, Net 127,121 384,971 366,764 23,825 10,249 202,649
Inventory: Lower of Cost or Market 810,782 809,849 792,379 704,884 659,079 539,975
Prepaid Expenses -- -- -- -- -- --
Investments -- -- -- -- -- --
Other -- -- -- -- -- --
--------- --------- --------- --------- --------- ---------
TOTAL CURRENT ASSETS 1,301,561 1,325,562 1,346,468 731,314 691,059 782,255
========= ========= ========= ========= ========= =========
PROPERTY, PLANT&EQUIP, @ COST 2,179,032 2,179,032 2,179,032 2,179,032 2,179,032 2,179,032
Less Accumulated Depreciation 1,025,945 1,025,945 1,040,825 1,055,706 1,070,586 1,085,468
--------- --------- --------- --------- --------- ---------
Net Book Value of PP & E 1,153,087 1,153,087 1,138,206 1,123,326 1,108,446 1,093,564
========= ========= ========= ========= ========= =========
OTHER ASSETS:
1. Tax Deposits -- -- -- -- -- --
2. Investments in Subs -- -- -- -- -- --
3. Deposits 3,000 3,000 3,000 3,000 3,000 3,000
4. Interests in Insurance Policies -- -- -- -- -- --
5. Note Receivable -- -- -- -- -- --
6. Other Assets 149,366 149,366 149,366 149,366 149,366 --
7. Intercompany 2,368,023 1,875,084 1,941,902 2,136,147 2,392,793 2,392,793
8. Post-Petition Intercompany -- 88,359 -- 171,957 -- --
--------- --------- --------- --------- --------- ---------
TOTAL ASSETS 4,975,038 4,594,458 4,578,943 4,315,110 4,344,664 4,271,612
========= ========= ========= ========= ========= =========
<Caption>
MONTH MONTH MONTH MONTH
ASSETS JUNE JULY AUGUST SEPTEMBER
------ ---------- --------- --------- ---------
CURRENT ASSETS
Cash 37,379 51,999 43,772 76,468
Accounts Receivable, Net 333,124 203,971 177,495 171,618
Inventory: Lower of Cost or Market 620,484 573,914 588,546 671,970
Prepaid Expenses 50,000 79,712 76,144 73,546
Investments -- -- -- --
Other -- -- -- --
--------- --------- --------- ---------
TOTAL CURRENT ASSETS 1,040,987 909,597 885,956 993,602
========= ========= ========= =========
PROPERTY, PLANT&EQUIP, @ COST 2,179,032 2,179,032 2,179,032 2,179,032
Less Accumulated Depreciation 1,100,349 1,115,230 1,130,111 1,144,722
--------- --------- --------- ---------
Net Book Value of PP & E 1,078,683 1,063,802 1,048,921 1,034,310
========= ========= ========= =========
OTHER ASSETS:
1. Tax Deposits -- -- -- --
2. Investments in Subs -- -- -- --
3. Deposits 3,000 3,000 3,000 3,000
4. Interests in Insurance Policies -- -- -- --
5. Note Receivable -- -- -- --
6. Other Assets -- -- -- --
7. Intercompany 2,392,793 2,392,793 2,392,793 2,392,793
8. Post-Petition Intercompany -- -- -- --
--------- --------- --------- ---------
TOTAL ASSETS 4,515,463 4,369,192 4,330,670 4,423,705
========= ========= ========= =========
</Table>
* Per Schedules and Statement of Affairs
MOR-2
CASE NAME: AMERICAN HOMESTAR OF BURLESON, L.P. CASE NUMBER: 01-80019-G3-11
COMPARATIVE BALANCE SHEETS
<Table>
<Caption>
LIABILITIES & OWNER'S MONTH MONTH MONTH MONTH MONTH
EQUITY FILING DATE* JANUARY FEBRUARY MARCH APRIL MAY
- --------------------- ------------ ---------- ---------- ---------- ---------- ----------
LIABILITIES:
POST-PETITION LIABILITIES (MOR-4) 43,710 122,245 86,636 233,815 240,687
PRE-PETITION LIABILITIES:
Notes Payable - Secured -- -- -- -- -- --
Priority Debt 58,358 58,380 26,010 82,859 82,859 82,859
Federal Income Tax 143,000 143,000 143,000 143,000 143,000 --
FICA/Withholding -- -- -- -- -- --
Unsecured Debt 1,518,648 1,431,792 1,340,266 1,120,590 1,115,873 949,050
Other -- -- -- -- -- --
---------- ---------- ---------- ---------- ---------- ----------
TOTAL PRE-PETITION LIABILITIES 1,720,006 1,633,173 1,509,276 1,346,449 1,341,732 1,031,909
---------- ---------- ---------- ---------- ---------- ----------
TOTAL LIABILITIES 1,720,006 1,676,883 1,631,521 1,433,085 1,575,547 1,272,595
========== ========== ========== ========== ========== ==========
OWNER'S EQUITY (DEFICIT):
Preferred Stock -- -- -- -- -- --
Common Stock -- -- -- -- -- --
ADDITIONAL PAID-IN CAPITAL -- -- -- -- -- --
PARTNERS CAPITAL 6,506,878 6,506,878 6,506,878 6,506,878 6,506,878 6,506,878
RETAINED EARNINGS: Filing Date (3,251,846) (3,251,846) (3,251,846) (3,251,846) (3,251,846) (3,251,846)
RETAINED EARNINGS: Post Filing Date -- (337,458) (307,610) (373,006) (485,915) (256,015)
---------- ---------- ---------- ---------- ---------- ----------
TOTAL OWNER'S EQUITY (NET WORTH) 3,255,032 2,917,574 2,947,422 2,882,026 2,769,117 2,999,017
---------- ---------- ---------- ---------- ---------- ----------
TOTAL LIABILITIES &
OWNER'S EQUITY 4,975,038 4,594,458 4,578,943 4,315,110 4,344,663 4,271,612
========== ========== ========== ========== ========== ==========
<Caption>
LIABILITIES & OWNER'S MONTH MONTH MONTH MONTH
EQUITY JUNE JULY AUGUST SEPTEMBER
- --------------------- ----------- ---------- ---------- ----------
LIABILITIES:
POST-PETITION LIABILITIES (MOR-4) 529,510 556,537 632,097 765,925
PRE-PETITION LIABILITIES:
Notes Payable - Secured
Priority Debt 82,859 82,859 82,859 81,168
Federal Income Tax -- -- -- --
FICA/Withholding -- -- -- --
Unsecured Debt 961,018 961,028 961,028 960,883
Other -- -- -- --
---------- ---------- ---------- ----------
TOTAL PRE-PETITION LIABILITIES 1,043,877 1,043,888 1,043,888 1,042,051
---------- ---------- ---------- ----------
TOTAL LIABILITIES 1,573,387 1,600,424 1,675,984 1,807,977
========== ========== ========== ==========
OWNER'S EQUITY (DEFICIT):
Preferred Stock -- -- -- --
Common Stock -- -- -- --
ADDITIONAL PAID-IN CAPITAL -- -- -- --
PARTNERS CAPITAL 6,506,878 6,506,878 6,506,878 6,506,878
RETAINED EARNINGS: Filing Date (3,251,846) (3,251,846) (3,251,846) (3,251,846)
RETAINED EARNINGS: Post Filing Date (312,956) (486,264) (600,347) (600,347)
---------- ---------- ---------- ----------
TOTAL OWNER'S EQUITY (NET WORTH) 2,942,076 2,768,768 2,654,685 2,615,728
---------- ---------- ---------- ----------
TOTAL LIABILITIES &
OWNER'S EQUITY 4,515,463 4,369,192 4,330,670 4,423,705
========== ========== ========== ==========
</Table>
* Per Schedules and Statement of Affairs
MOR-3
CASE NAME: AMERICAN HOMESTAR OF BURLESON, L.P. CASE NUMBER: 01-80019-G3-11
SCHEDULE OF POST-PETITION LIABILITIES
<Table>
<Caption>
MONTH MONTH MONTH MONTH MONTH
JANUARY FEBRUARY MARCH APRIL MAY
-------- -------- -------- ------- -------
TRADE ACCOUNTS PAYABLE 20,879 21,085 63,608 148,912 43,930
------- ------- ------- ------- -------
TAX PAYABLE
Federal Payroll Taxes 4,651 15,452 6,486 16,039 10,691
State Payroll & Sales 179 187 103 117 154
Ad Valorem Taxes -- -- -- -- --
Other Taxes -- -- -- -- --
------- ------- ------- ------- -------
TOTAL TAXES PAYABLE 4,830 15,639 6,589 16,156 10,845
======= ======= ======= ======= =======
SECURED DEBT POST-PETITION -- -- -- -- --
ACCRUED INTEREST PAYABLE -- -- -- -- --
* ACCRUED PROFESSIONAL FEES -- -- -- -- --
OTHER ACCRUED LIABILITIES: -- -- -- -- --
1. Manufacturing 5,454 4,076 -- -- 5,700
2. Salaries 12,548 54,214 11,212 24,046 18,807
3. FIP -- 5,227 5,227 -- --
4. INTERCOMPANY -- 22,005 -- 44,701 161,405
------- ------- ------- ------- -------
TOTAL POST-PETITION LIABILITIES (MOR-3) 43,710 122,245 86,635 233,815 240,687
======= ======= ======= ======= =======
<Caption>
MONTH MONTH MONTH MONTH
JUNE JULY AUGUST SEPTEMBER
------- ------- ------- ---------
TRADE ACCOUNTS PAYABLE 101,663 35,430 17,136 38,707
------- ------- ------- -------
TAX PAYABLE
Federal Payroll Taxes 11,892 20,683 20,907 20,466
State Payroll & Sales 1,271 284 465 607
Ad Valorem Taxes -- -- -- --
Other Taxes -- -- -- --
------- ------- ------- -------
TOTAL TAXES PAYABLE 13,164 20,966 21,371 21,072
======= ======= ======= =======
SECURED DEBT POST-PETITION -- -- -- --
ACCRUED INTEREST PAYABLE -- -- -- --
* ACCRUED PROFESSIONAL FEES -- 2,000 4,000 6,000
OTHER ACCRUED LIABILITIES: -- -- -- --
1. Manufacturing -- -- -- --
2. Salaries 11,574 10,329 8,548 20,603
3. FIP -- -- -- --
4. INTERCOMPANY 403,109 487,812 581,042 679,543
------- ------- ------- -------
TOTAL POST-PETITION LIABILITIES (MOR-3) 529,510 556,537 632,097 765,925
======= ======= ======= =======
</Table>
* Payment Requires Court Approval.
MOR-4
CASE NAME: AMERICAN HOMESTAR OF BURLESON, L.P. CASE NUMBER: 01-80019-G3-11
AGING OF POST-PETITION LIABILITIES
MONTH OF SEPTEMBER 2001
<Table>
<Caption>
AD-VALOREM,
DAYS TOTAL TRADE ACCTS FED TAXES STATE TAXES OTHER TAXES OTHER
- ---- ------- ----------- --------- ----------- ------------ -----
0-30 765,925 38,707 20,466 607 706,146
31-60 --
61-90 --
91 + --
TOTAL 765,925 38,707 20,466 607 -- 706,146
</Table>
AGING OF ACCOUNTS RECEIVABLE
<Table>
<Caption>
MONTH JANUARY FEBRUARY MARCH APRIL MAY
----- -------- -------- ------ ------ -------
0-30 DAYS -- -- -- -- 202,649
31-60 DAYS -- -- -- -- --
61-90 DAYS -- -- -- -- --
91 + DAYS 384,971 366,764 23,825 10,249 --
TOTAL 384,971 366,764 23,825 10,249 202,649
<Caption>
MONTH JUNE JULY AUGUST SEPTEMBER
----- ------- ------- -------- ---------
0-30 DAYS 132,030 131,700 110,191 104,314
31-60 DAYS 167,867 21,509 21,509
61-90 DAYS 50,568 -- --
91 + DAYS 33,227 21,703 45,795 45,795
TOTAL 333,124 203,971 177,495 171,618
</Table>
MOR-5
CASE NAME: AMERICAN HOMESTAR OF BURLESON, L.P. CASE NUMBER: 01-80019-G3-11
STATEMENT OF INCOME (LOSS)
<Table>
<Caption>
MONTH JANUARY FEBRUARY MARCH APRIL MAY
----- -------- -------- -------- -------- --------
REVENUES (MOR-1) 123,280 92,862 119,800 254,945 368,109
TOTAL COST OF REVENUES 124,900 122,152 213,692 158,256 183,906
GROSS PROFIT (1,621) (29,290) (93,892) 96,689 184,203
OPERATING EXPENSES:
Selling & Marketing 40,238 89,296 92,272 50,164 57,441
General & Administrative 295,599 15,766 15,886 10,707 22,289
Insiders Compensation -- -- -- -- --
Professional Fees -- 1,619 3,750 250
Correction of Liabilities (179,080) (153,153) 130,095 (140,557)
Other (attach list) -- -- -- -- --
-------- -------- -------- -------- --------
TOTAL OPERATING EXPENSES 335,837 (74,018) (43,377) 194,716 (60,577)
======== ======== ======== ======== ========
INCOME BEFORE INT, DEPR/TAX (MOR-1) (337,458) 44,728 (50,515) (98,028) 244,781
======== ======== ======== ======== ========
INTEREST EXPENSE -- -- -- -- --
DEPRECIATION -- 14,881 14,881 14,881 14,881
OTHER (INCOME) EXPENSE * -- -- -- -- --
OTHER ITEMS ** -- -- -- -- --
-------- -------- -------- -------- --------
TOTAL INT, DEPR & OTHER ITEMS -- 14,881 14,881 14,881 14,881
-------- -------- -------- -------- --------
NET INCOME BEFORE TAXES (337,458) 29,847 (65,396) (112,909) 229,900
======== ======== ======== ======== ========
FEDERAL INCOME TAXES -- -- -- -- --
-------- -------- -------- -------- --------
NET INCOME (LOSS) (MOR-1) (337,458) 29,847 (65,396) (112,909) 229,900
======== ======== ======== ======== ========
<Caption>
MONTH JUNE JULY AUGUST SEPTEMBER FILING TO DATE
----- -------- -------- -------- --------- --------------
REVENUES (MOR-1) 132,030 131,725 118,347 121,388 1,217,818
TOTAL COST OF REVENUES 227,747 173,705 105,030 56,635 1,184,488
GROSS PROFIT (95,717) (41,980) 13,317 64,753 33,330
OPERATING EXPENSES:
Selling & Marketing 71,364 77,317 69,680 54,605 507,534
General & Administrative 27,536 32,716 42,681 31,604 167,581
Insiders Compensation -- -- -- -- --
Professional Fees -- -- -- 2,890 5,619
Correction of Liabilities (152,558) 6,413 158 -- (488,682)
Other (attach list) -- -- -- -- --
-------- -------- -------- ------- ---------
TOTAL OPERATING EXPENSES (53,657) 116,446 112,519 89,099 192,052
======== ======== ======== ======= =========
INCOME BEFORE INT, DEPR/TAX (MOR-1) (42,060) (158,426) (99,202) (24,346) (158,722)
======== ======== ======== ======= =========
INTEREST EXPENSE -- -- -- -- --
DEPRECIATION 14,881 14,882 14,881 14,881 104,168
OTHER (INCOME) EXPENSE * -- -- -- -- --
OTHER ITEMS ** -- -- -- -- --
-------- -------- -------- ------- ---------
TOTAL INT, DEPR & OTHER ITEMS 14,881 14,882 14,881 14,881 104,168
-------- -------- -------- ------- ---------
NET INCOME BEFORE TAXES (56,941) (173,308) (114,083) (39,227) (262,890)
======== ======== ======== ======= =========
FEDERAL INCOME TAXES -- -- -- -- --
-------- -------- -------- ------- ---------
NET INCOME (LOSS) (MOR-1) (56,941) (173,308) (114,083) (39,227) (262,890)
======== ======== ======== ======= =========
</Table>
Accrual Accounting Required, Otherwise Footnote With Explanation
* Footnote Mandatory
** Unusual and/or infrequent item(s) outside the ordinary course of business;
requires footnote
MOR-6
CASE NAME: AMERICAN HOMESTAR OF BURLESON, L.P. CASE NUMBER: 01-80019-G3-11
<Table>
<Caption>
CASH RECEIPTS AND MONTH MONTH MONTH MONTH MONTH
DISBURSEMENTS JANUARY FEBRUARY MARCH APRIL MAY
- ----------------- -------- -------- -------- ------- -------
1. CASH - BEGINNING OF MONTH 363,659 74,029 142,293 (42,428) (23,302)
RECEIPTS:
2. CASH SALES -- -- -- -- --
3. COLLECTION OF ACCOUNTS RECEIVABLE 299 276,352 113,751 14,589 274,683
4. LOANS & ADVANCES (ATTACH LIST) -- -- -- -- --
5. SALE OF ASSETS -- -- -- -- --
6. INTERCOMPANY 44,733 -- -- 211,841 --
7. OTHER (ATTACH LIST) -- -- -- -- --
-------- ------- -------- ------- -------
TOTAL RECEIPTS -- 276,352 113,751 226,430 274,683
======== ======= ======== ======= =======
(Withdrawal) Contribution by Individual Debtor MFR-2*
DISBURSEMENTS:
8. NET PAYROLL 11,680 11,230 554 -- --
9. PAYROLL TAXES PAID -- -- -- -- --
10. SALES, USE & OTHER TAXES PAID -- -- -- 1,505 --
11. SECURED / RENTAL / LEASES -- 6,347 509 8,229 4,555
12. UTILITIES -- 294 6,824 12,199 8,946
13. INSURANCE 201,039 5,210 8,660 5,013 16,264
14. INVENTORY PURCHASES 46,257 72,650 114,207 127,479 135,918
15. VEHICLE EXPENSES -- -- 1,057 1,221 2,997
16. TRAVEL ENTERTAINMENT 707 1,486 3,826 1,780 819
17. REPAIRS, MAINTENANCE & SUPPLIES 642 32,488 60,617 42,752 45,826
18. ADMINISTRATIVE & SELLING 29,305 6,751 11,623 3,376 2,164
19. DELIVERY -- -- -- -- 27,737
20. INTERCOMPANY -- 71,634 32,213 -- 7,779
20. TRANSPORTATION -- -- 58,382 -- --
-------- ------- -------- ------- -------
TOTAL DISBURSEMENTS FROM OPERATIONS 289,630 208,089 298,471 203,554 253,006
======== ======= ======== ======= =======
20. PROFESSIONAL FEES -- -- -- -- 3,528
21. U.S. TRUSTEE FEES -- -- -- 3,750 250
22. OTHER REORGANIZATION EXPENSES (ATTACH LIST) -- -- -- -- --
-------- ------- -------- ------- -------
TOTAL DISBURSEMENTS 289,630 208,089 298,471 207,304 256,784
======== ======= ======== ======= =======
23. NET CASH FLOW (289,630) 68,264 (184,720) 19,126 17,899
-------- ------- -------- ------- -------
24. CASH - END OF MONTH (MOR-2) 74,029 142,293 (42,428) (23,302) (5,402)
======== ======= ======== ======= =======
<Caption>
CASH RECEIPTS AND MONTH MONTH MONTH MONTH FILING TO
DISBURSEMENTS JUNE JULY AUGUST SEPTEMBER DATE
- ----------------- ------- ------- ------- --------- ---------
1. CASH - BEGINNING OF MONTH (5,402) 37,381 51,999 43,772 74,029
RECEIPTS:
2. CASH SALES -- -- -- -- --
3. COLLECTION OF ACCOUNTS RECEIVABLE 2,233 232,815 194,644 124,801 1,233,869
4. LOANS & ADVANCES (ATTACH LIST) -- -- -- -- --
5. SALE OF ASSETS -- -- -- -- --
6. INTERCOMPANY 164,402 -- 33,033 108,603 517,879
7. OTHER (ATTACH LIST) -- -- -- -- --
------- ------- ------- ------- ---------
TOTAL RECEIPTS 166,635 232,815 227,677 233,404 1,751,748
======= ======= ======= ======= =========
(Withdrawal) Contribution by Individual Debtor MFR-2*
DISBURSEMENTS:
8. NET PAYROLL -- -- -- 54,331 66,115
9. PAYROLL TAXES PAID -- -- -- 14,736 14,736
10. SALES, USE & OTHER TAXES PAID -- 1,193 -- 1,691 4,389
11. SECURED / RENTAL / LEASES 4,332 16,000 20,156 25,278 85,406
12. UTILITIES 13,566 20,615 8,508 7,102 78,053
13. INSURANCE 9,211 11,003 27,927 10,993 94,280
14. INVENTORY PURCHASES 75,783 67,973 155,931 80,482 830,424
15. VEHICLE EXPENSES 5,450 2,115 4,003 451 17,295
16. TRAVEL ENTERTAINMENT 1,448 1,084 853 306 11,602
17. REPAIRS, MAINTENANCE & SUPPLIES 51,128 10,854 2,498 2,309 248,473
18. ADMINISTRATIVE & SELLING 3,528 35,404 4,932 1,371 69,149
19. DELIVERY -- -- -- -- 27,737
20. INTERCOMPANY -- 51,957 -- -- 163,583
20. TRANSPORTATION 3,371 -- -- -- 61,753
------- ------- ------- ------- ---------
TOTAL DISBURSEMENTS FROM OPERATIONS 167,817 218,197 224,810 199,051 1,772,995
======= ======= ======= ======= =========
20. PROFESSIONAL FEES 1,002 -- -- 145 4,675
21. U.S. TRUSTEE FEES -- -- -- -- 4,000
22. OTHER REORGANIZATION EXPENSES (ATTACH LIST) 66 -- 11,095 1,512 12,673
------- ------- ------- ------- ---------
TOTAL DISBURSEMENTS 168,885 218,197 235,904 200,708 1,794,342
======= ======= ======= ======= =========
23. NET CASH FLOW (2,250) 14,618 (8,227) 32,696 (42,594)
------- ------- ------- ------- ---------
24. CASH - END OF MONTH (MOR-2) (7,652) 51,999 43,772 76,468 31,436
======= ======= ======= ======= =========
</Table>
* applies to Individual debtor's only.
MOR-7
CASE NAME: AMERICAN HOMESTAR OF BURLESON, L.P. CASE NUMBER: 01-80019-G3-11
CASH ACCOUNT RECONCILIATION
MONTH OF SEPTEMBER 2001
<Table>
<Caption>
BANK NAME Bank of America Bank One Bank One
- --------- --------------- ------------ ------------
ACCOUNT NUMBER # 3755500137 # 1826021055 # 1826021063
ACCOUNT TYPE OPERATING CHECKING GENERAL
- ------------ --------- -------- -------
BANK BALANCE 39,324 -- --
DEPOSIT IN TRANSIT -- -- --
OUTSTANDING CHECKS -- -- --
--------- -------- -------
ADJUSTED BANK BALANCE 39,324 -- --
========= ======== =======
BEGINNING CASH - PER BOOKS -- -- --
RECEIPTS -- -- --
TRANSFERS BETWEEN ACCOUNTS 93,070 -- --
(WITHDRAWAL) CONTRIBUTION - BY INDIVIDUAL DEBTOR MFR-2 -- -- --
CHECKS / OTHER DISBURSEMENTS (200,708) -- --
--------- -------- -------
ENDING CASH - PER BOOKS (107,638) -- --
========= ======== =======
<Caption>
BANK NAME Bank One Petty Cash
- --------- ------------ ----------
ACCOUNT NUMBER # 1826021071
ACCOUNT TYPE PAYROLL OTHER FUNDS TOTAL
- ------------ ------- ----------- --------
BANK BALANCE 34,389 2,755 76,468
DEPOSIT IN TRANSIT -- -- --
OUTSTANDING CHECKS -- -- --
------- ----------- --------
ADJUSTED BANK BALANCE 34,389 2,755 76,469
======= =========== ========
BEGINNING CASH - PER BOOKS 18,856 2,755 21,611
RECEIPTS -- --
TRANSFERS BETWEEN ACCOUNTS 15,533 108,603
(WITHDRAWAL) CONTRIBUTION - BY INDIVIDUAL DEBTOR MFR-2 -- -- --
CHECKS / OTHER DISBURSEMENTS -- (200,708)
------- ----------- --------
ENDING CASH - PER BOOKS 34,389 2,755 76,469
======= =========== ========
</Table>
MOR-8
CASE NAME: AMERICAN HOMESTAR OF BURLESON, L.P. CASE NUMBER: 01-80019-G3-11
PAYMENTS TO INSIDERS AND PROFESSIONALS
OF THE TOTAL DISBURSEMENTS SHOWN FOR THE MONTH, LIST THE AMOUNT PAID TO INSIDERS
(AS DEFINED IN SECTION 101(30)(A)-(F) OF THE U. S. BANKRUPTCY CODE) AND THE
PROFESSIONALS. ALSO, FOR INSIDERS IDENTIFY THE TYPE OF COMPENSATION PAID (E.G.,
SALARY, COMMISSION, BONUS, ETC.) (ATTACH ADDITIONAL PAGES AS NECESSARY).
<Table>
<Caption>
MONTH MONTH MONTH MONTH MONTH
INSIDERS: NAME/POSITION/COMP TYPE JANUARY FEBRUARY MARCH APRIL MAY
- --------------------------------- ------- -------- ----- ----- -----
1. Finis F. Teeter/President HSTR General Holdings -- -- -- -- --
2. Ronald McCaslin/Vice President, Director HSTR Gen Hold -- -- -- -- --
3. Charles N. Carney, Jr./Vice President, Director HSTR Gen Hold -- -- -- -- --
4. Richard A. Carver/Vice President HSTR General Holdings -- -- -- -- --
5. Jackie Holland/Vice President HSTR General Holdings -- -- -- -- --
6. Craig A. Reynolds/Vice President, Secretary HSTR Gen Hold -- -- -- -- --
7. Kristi E. Gross/Assistant Secretary HSTR General Holdings -- -- -- -- --
8. Mary Morton/Assistant Secretary HSTR General Holdings -- -- -- -- --
9. Dennis L. Jones/President, Director HSTR Mfg Holdings -- -- -- -- --
10. Ronald Krueger/VP, Treasurer, Director HSTR Mfg Holdings -- -- -- -- --
11. Robert Grier/Secretary, Director HSTR Mfg Holdings -- -- -- -- --
12. Beth L. Peoples/Asst Secretary, Asst Treasurer HSTR Mfg Hold -- -- -- -- --
------- -------- ----- ----- -----
TOTAL INSIDERS (MOR-1) -- -- -- -- --
======= ======== ===== ===== =====
<Caption>
MONTH MONTH MONTH MONTH
INSIDERS: NAME/POSITION/COMP TYPE JUNE JULY AUGUST SEPTEMBER
- --------------------------------- ----- ----- ------ ---------
1. Finis F. Teeter/President HSTR General Holdings -- -- -- --
2. Ronald McCaslin/Vice President, Director HSTR Gen Hold -- -- -- --
3. Charles N. Carney, Jr./Vice President, Director HSTR Gen Hold -- -- -- --
4. Richard A. Carver/Vice President HSTR General Holdings -- -- -- --
5. Jackie Holland/Vice President HSTR General Holdings -- -- -- --
6. Craig A. Reynolds/Vice President, Secretary HSTR Gen Hold -- -- -- --
7. Kristi E. Gross/Assistant Secretary HSTR General Holdings -- -- -- --
8. Mary Morton/Assistant Secretary HSTR General Holdings -- -- -- --
9. Dennis L. Jones/President, Director HSTR Mfg Holdings -- -- -- --
10. Ronald Krueger/VP, Treasurer, Director HSTR Mfg Holdings -- -- -- --
11. Robert Grier/Secretary, Director HSTR Mfg Holdings -- -- -- --
12. Beth L. Peoples/Asst Secretary, Asst Treasurer HSTR Mfg Hold -- -- -- --
----- ----- ------ ------
TOTAL INSIDERS (MOR-1) -- -- -- --
===== ===== ====== ======
</Table>
<Table>
<Caption>
MONTH MONTH MONTH MONTH MONTH
PROFESSIONALS/NAME/ORDER DATE JANUARY FEBRUARY MARCH APRIL MAY
- ----------------------------- ------- -------- ----- ----- -----
1. Floyd, Isgur, Rios & Warlich -- -- -- -- 1,582
2. Strategic Capital Corporation -- -- -- -- 1,946
3 -- -- -- -- --
4 -- -- -- -- --
5 -- -- -- -- --
6 -- -- -- -- --
------- -------- ----- ----- -----
TOTAL PROFESSIONALS (MOR-1) -- -- -- -- 3,528
======= ======== ===== ===== =====
<Caption>
MONTH MONTH MONTH MONTH
PROFESSIONALS/NAME/ORDER DATE JUNE JULY AUGUST SEPTEMBER
- ----------------------------- ----- ----- ------ ---------
1. Floyd, Isgur, Rios & Warlich -- -- 17 0
2. Strategic Capital Corporation 1,002 -- 1,078 1,512
3 -- -- -- --
4 -- -- -- --
5 -- -- -- --
6 -- -- -- --
----- ----- ------ ------
TOTAL PROFESSIONALS (MOR-1) 1,002 -- 1,095 1,512
===== ===== ====== ======
</Table>
MOR-9
UNITED STATES BANKRUPTCY COURT
SOUTHERN DISTRICT OF TEXAS
HOUSTON DIVISION
<Table>
CASE NAME: AMERICAN HOMESTAR OF LANCASTER, L.P. PETITION DATE: JANUARY 11, 2001
CASE NUMBER: 01-80020-G3-11
MONTHLY OPERATING REPORT SUMMARY FOR MONTH SEPTEMBER YEAR 2001
--------- ----
JANUARY FEBRUARY MARCH APRIL MAY
---------- ---------- ---------- ---------- ----------
REVENUES (MOR-6) 1,041,962 1,158,506 1,146,901 1,539,269 2,005,150
INCOME BEFORE INT, DEPREC./TAX
(MOR-6) (644,152) (1,923,110) 1,927,046 443,728 595,241
NET INCOME (LOSS) (MOR-6) (658,237) (1,939,187) 1,913,000 429,692 582,252
PAYMENTS TO INSIDERS (MOR-9) -- -- -- -- --
PAYMENTS TO PROFESSIONALS (MOR-9) -- -- -- -- 4,094
TOTAL DISBURSEMENTS (MOR-8) 561,458 770,491 831,369 1,005,985 1,481,033
<Caption>
JUNE JULY AUGUST SEPTEMBER
---------- ---------- ---------- ----------
REVENUES (MOR-6) 2,003,587 1,882,396 1,851,481 2,216,045
INCOME BEFORE INT, DEPREC./TAX
(MOR-6) 111,910 (170,951) 436,056 (38,560)
NET INCOME (LOSS) (MOR-6) 97,478 (185,382) 421,625 (46,025)
PAYMENTS TO INSIDERS (MOR-9) -- -- -- --
PAYMENTS TO PROFESSIONALS (MOR-9) 1,408 2,135 1,316 1,498
TOTAL DISBURSEMENTS (MOR-8) 1,549,134 1,735,852 1,625,092 1,339,755
</Table>
*** The ORIGINAL of this document MUST BE FILED with the United States
Bankruptcy Court and a COPY MUST BE SENT to the United States Trustee ***
- --------------------------------------------------------------------------------
REQUIRED INSURANCE MAINTAINED
AS OF SIGNATURE DATE
<Table>
<Caption>
EXP.
DATE
----
CASUALTY YES (X) NO ( ) 06/30/02
LIABILITY YES (X) NO ( ) 06/30/02
VEHICLE YES (X) NO ( ) 06/30/02
WORKER'S YES (X) NO ( ) 05/31/02
OTHER - DIRECTOR/OFFICER YES (X) NO ( ) 01/23/02
</Table>
- --------------------------------------------------------------------------------
ATTORNEY NAME:
FIRM: Floyd, Isgur, Rios & Warlich, P. C.
Address: 700 Louisiana, Suite 4600
Address:
City, State, ZIP: Houston, TX 77002-2732
Telephone: 713-222-1470
Fax: 713-222-1475
- --------------------------------------------------------------------------------
<Table>
<Caption>
CIRCLE ONE
Are all accounts receivable being collected within terms? YES NO
Are all posted-petition liabilities, including taxes,
being paid within terms? YES NO
Have any pre-petition liabilities been paid? YES NO
If so, describe. PURSUANT TO COURT ORDER AUTHORIZING
PAYMENTS OF PRE-PETITION WAGES, SALARIES, COMMISSIONS AND
COMPENSATION SIGNED JANUARY 11, 2001.
Are all funds received being deposited into DIP bank accounts? YES NO
Were any assets disposed of outside the normal course of business? YES NO
If so, describe.
--------------------------------------------------
- ------------------------------------------------------------------.
Are all U.S. Trustee Quarterly Fee Payments current? YES NO
What is the status of your Plan of Reorganization? PLAN OF REORGANIZATION
CONFIRMED BY COURT ON AUGUST 14, 2001. EFFECTIVE DATE OF REORGANIZATION -
OCTOBER 3, 2001.
</Table>
I certify under penalty of perjury that the
following complete Monthly Operating Report
(MOR), consisting of MOR-1 through MOR-9
plus attachments, is true and correct.
SIGNED /s/ CRAIG A. REYNOLDS
----------------------------------------
TITLE Vice President of Finance
----------------------------------------
MOR-1
CASE NAME: AMERICAN HOMESTAR OF LANCASTER, L.P. CASE NUMBER: 01-80020-G3-11
COMPARATIVE BALANCE SHEETS
<Table>
<Caption>
MONTH MONTH MONTH MONTH MONTH
ASSETS FILING DATE* JANUARY FEBRUARY MARCH APRIL MAY
------ ------------ ------------ ------------ ------------ ------------ ------------
CURRENT ASSETS
Cash 609,820 273,965 428,641 645,885 913,057 1,124,056
Accounts Receivable, Net 670,011 1,966,772 108,515 102,258 1,399,798 1,294,030
Inventory: Lower of Cost or Market 1,120,587 1,408,497 1,152,331 1,472,824 1,315,585 1,176,739
Prepaid Expenses -- -- -- -- -- --
Investments -- -- -- -- -- --
Other -- -- -- -- -- --
------------ ------------ ------------ ------------ ------------ ------------
TOTAL CURRENT ASSETS 2,400,418 3,649,233 1,689,486 2,220,967 3,628,440 3,594,825
============ ============ ============ ============ ============ ============
PROPERTY, PLANT&EQUIP, @ COST 1,860,087 1,860,087 1,895,050 1,895,050 1,895,050 1,895,050
Less Accumulated Depreciation 998,046 1,012,130 1,028,748 1,043,198 1,057,647 1,072,080
------------ ------------ ------------ ------------ ------------ ------------
Net Book Value of PP & E 862,041 847,957 866,302 851,852 837,402 822,970
============ ============ ============ ============ ============ ============
OTHER ASSETS:
1. Tax Deposits -- -- -- -- -- --
2. Investments in Subs -- -- -- -- -- --
3. Deposits 330 330 330 3,000 3,000 3,000
4. Interests in Insurance Policies -- -- -- -- -- --
5. Note Receivable -- -- -- -- -- --
6. Other Assets 176,180 176,180 176,180 176,180 176,180 --
7. Intercompany 15,344,157 14,819,801 15,101,928 14,971,374 14,952,178 14,952,178
------------ ------------ ------------ ------------ ------------ ------------
TOTAL ASSETS 18,783,126 19,493,501 17,834,226 18,223,373 19,597,200 19,372,973
============ ============ ============ ============ ============ ============
<Caption>
MONTH MONTH MONTH MONTH
ASSETS JUNE JULY AUGUST SEPTEMBER
------ ------------ ------------ ------------ ------------
CURRENT ASSETS
Cash 490,269 374,476 1,821,776 2,143,021
Accounts Receivable, Net 1,813,240 1,773,818 500,028 618,132
Inventory: Lower of Cost or Market 1,224,678 1,012,606 (344,779) 664,544
Prepaid Expenses 136,492 231,689 799,467 570,830
Investments -- -- -- --
Other -- -- -- --
------------ ------------ ------------ ------------
TOTAL CURRENT ASSETS 3,664,678 3,392,588 2,776,492 3,996,527
============ ============ ============ ============
PROPERTY, PLANT&EQUIP, @ COST 1,895,050 1,895,050 1,895,050 1,897,307
Less Accumulated Depreciation 1,086,512 1,100,944 1,115,376 1,129,765
------------ ------------ ------------ ------------
Net Book Value of PP & E 808,538 794,106 779,673 767,542
============ ============ ============ ============
OTHER ASSETS:
1. Tax Deposits -- -- -- --
2. Investments in Subs -- -- -- --
3. Deposits 3,000 3,000 3,000 3,000
4. Interests in Insurance Policies -- -- -- --
5. Note Receivable -- -- -- --
6. Other Assets -- -- -- --
7. Intercompany 14,952,178 14,952,178 14,952,178 14,952,178
------------ ------------ ------------ ------------
TOTAL ASSETS 19,428,394 19,141,872 18,511,343 19,719,246
============ ============ ============ ============
</Table>
* Per Schedules and Statement of Affairs
MOR-2
CASE NAME: AMERICAN HOMESTAR OF LANCASTER, L.P. CASE NUMBER: 01-80020-G3-11
COMPARATIVE BALANCE SHEETS
<Table>
<Caption>
LIABILITIES & OWNER'S MONTH MONTH MONTH MONTH MONTH
EQUITY FILING DATE* JANUARY FEBRUARY MARCH APRIL MAY
- --------------------- ------------ ------------ ------------ ------------ ------------ ------------
LIABILITIES:
POST-PETITION LIABILITIES (MOR-4) 1,355,106 2,027,952 1,238,284 2,473,420 2,375,155
------------ ------------ ------------ ------------ ------------
PRE-PETITION LIABILITIES:
Notes Payable - Secured -- -- -- -- -- --
Priority Debt 238,206 54,227 116,628 181,403 181,076 181,076
Federal Income Tax 474,000 474,000 474,000 474,000 474,000 --
FICA/Withholding -- -- -- -- -- --
Unsecured Debt 3,289,796 3,487,280 3,031,947 2,232,986 1,942,312 1,708,098
Other -- -- -- -- -- --
------------ ------------ ------------ ------------ ------------ ------------
TOTAL PRE-PETITION LIABILITIES 4,002,001 4,015,507 3,622,575 2,888,389 2,597,388 1,889,174
------------ ------------ ------------ ------------ ------------ ------------
TOTAL LIABILITIES 4,002,001 5,370,613 5,650,526 4,126,673 5,070,808 4,264,328
============ ============ ============ ============ ============ ============
OWNER'S EQUITY (DEFICIT):
Preferred Stock -- -- -- -- -- --
Common Stock -- -- -- -- -- --
ADDITIONAL PAID-IN CAPITAL -- -- -- -- -- --
PARTNERS CAPITAL 17,313,743 17,313,743 17,313,743 17,313,743 17,313,743 17,313,743
RETAINED EARNINGS: FILING DATE (2,532,619) (2,532,619) (2,532,619) (2,532,619) (2,532,619) (2,532,619)
RETAINED EARNINGS: POST FILING DATE -- (658,237) (2,597,424) (684,424) (254,732) 327,520
------------ ------------ ------------ ------------ ------------ ------------
TOTAL OWNER'S EQUITY (NET WORTH) 14,781,124 14,122,887 12,183,700 14,096,700 14,526,392 15,108,644
------------ ------------ ------------ ------------ ------------ ------------
TOTAL LIABILITIES &
OWNER'S EQUITY 18,783,125 19,493,501 17,834,226 18,223,373 19,597,200 19,372,973
============ ============ ============ ============ ============ ============
<Caption>
LIABILITIES & OWNER'S MONTH MONTH MONTH MONTH
EQUITY JUNE JULY AUGUST SEPTEMBER
- --------------------- ------------ ------------ ------------ ------------
LIABILITIES:
POST-PETITION LIABILITIES (MOR-4) 2,333,098 2,231,983 1,169,748 2,418,019
------------ ------------ ------------ ------------
PRE-PETITION LIABILITIES:
Notes Payable - Secured -- -- -- --
Priority Debt 181,403 181,403 191,459 187,265
Federal Income Tax -- -- -- --
FICA/Withholding -- -- -- --
Unsecured Debt 1,707,771 1,707,771 1,707,771 1,710,171
Other -- -- -- --
------------ ------------ ------------ ------------
TOTAL PRE-PETITION LIABILITIES 1,889,174 1,889,174 1,899,230 1,897,436
------------ ------------ ------------ ------------
TOTAL LIABILITIES 4,222,272 4,121,157 3,068,978 4,315,454
============ ============ ============ ============
OWNER'S EQUITY (DEFICIT):
Preferred Stock -- -- -- --
Common Stock -- -- -- --
ADDITIONAL PAID-IN CAPITAL -- -- -- --
PARTNERS CAPITAL 17,313,743 17,313,743 17,313,743 17,313,743
RETAINED EARNINGS: FILING DATE (2,532,619) (2,532,619) (2,532,619) (2,532,619)
RETAINED EARNINGS: POST FILING DATE 424,998 239,591 661,241 661,241
------------ ------------ ------------ ------------
TOTAL OWNER'S EQUITY (NET WORTH) 15,206,122 15,020,715 15,442,365 15,403,792
------------ ------------ ------------ ------------
TOTAL LIABILITIES &
OWNER'S EQUITY 19,428,394 19,141,872 18,511,343 19,719,246
============ ============ ============ ============
</Table>
* Per Schedules and Statement of Affairs
MOR-3
CASE NAME: AMERICAN HOMESTAR OF LANCASTER, L.P. CASE NUMBER: 01-80020-G3-11
SCHEDULE OF POST-PETITION LIABILITIES
<Table>
<Caption>
MONTH MONTH MONTH MONTH MONTH
JANUARY FEBRUARY MARCH APRIL MAY
---------- ---------- ---------- ---------- ----------
TRADE ACCOUNTS PAYABLE 728,925 1,108,326 655,633 870,995 756,991
---------- ---------- ---------- ---------- ----------
TAX PAYABLE
Federal Payroll Taxes 33,785 62,147 13,889 23,898 23,927
State Payroll & SALES 33,445 70,329 69,735 35,288 36,539
Ad Valorem Taxes -- -- -- 8,000 16,000
Other Taxes -- -- -- -- --
---------- ---------- ---------- ---------- ----------
TOTAL TAXES PAYABLE 67,230 132,476 83,624 67,186 76,467
========== ========== ========== ========== ==========
SECURED DEBT POST-PETITION -- -- -- -- --
ACCRUED INTEREST PAYABLE -- -- -- -- --
* ACCRUED PROFESSIONAL FEES -- -- -- 1,000 2,000
OTHER ACCRUED LIABILITIES: -- -- -- -- --
1. Management 55,790 -- 19,398 25,348 9,159
2. Manufacturing 9,393 14,554 21,032 -- 29,662
3. Sales Commissions 2,790 6,547 7,632 -- --
4. Salaries 189,155 167,926 32,917 35,981 22,271
5. 401k Contribution 1,208 1,368 -- -- --
6. Option Life Insurance 183 329 -- -- --
7. General Liability 1,000 1,000 1,000 2,000 3,000
8. Workers Comp 2,000 2,000 2,000 4,000 6,000
9. Intercompany 297,432 593,425 415,048 1,466,910 1,469,606
---------- ---------- ---------- ---------- ----------
TOTAL POST-PETITION LIABILITIES (MOR-3) 1,355,106 2,027,952 1,238,284 2,473,420 2,375,155
========== ========== ========== ========== ==========
</Table>
<Table>
<Caption>
MONTH MONTH MONTH MONTH
JUNE JULY AUGUST SEPTEMBER
---------- ---------- ---------- ----------
TRADE ACCOUNTS PAYABLE 756,559 583,676 (423,828) 685,671
---------- ---------- ---------- ----------
TAX PAYABLE
Federal Payroll Taxes 36,755 53,348 61,355 26,210
State Payroll & SALES 75,368 68,328 (19,367) 104,261
Ad Valorem Taxes 24,000 32,000 40,000 48,000
Other Taxes -- -- -- --
---------- ---------- ---------- ----------
TOTAL TAXES PAYABLE 136,123 153,676 81,987 178,471
========== ========== ========== ==========
SECURED DEBT POST-PETITION -- -- -- --
ACCRUED INTEREST PAYABLE -- -- -- --
* ACCRUED PROFESSIONAL FEES 3,000 5,000 7,000 9,000
OTHER ACCRUED LIABILITIES: -- -- -- --
1. Management 39,054 881 232 33,205
2. Manufacturing 3,451 20,340 22,600 23,138
3. Sales Commissions 5,000 5,000 5,000 5,000
4. Salaries 56,755 53,749 54,487 62,522
5. 401k Contribution -- -- -- --
6. Option Life Insurance -- -- -- --
7. General Liability 4,000 4,000 4,000 4,000
8. Workers Comp 8,000 13,000 15,000 17,000
9. Intercompany 1,321,157 1,392,661 1,403,271 1,400,012
---------- ---------- ---------- ----------
TOTAL POST-PETITION LIABILITIES (MOR-3) 2,333,098 2,231,983 1,169,748 2,418,019
========== ========== ========== ==========
</Table>
* Payment Requires Court Approval.
MOR-4
CASE NAME: AMERICAN HOMESTAR OF LANCASTER, L.P. CASE NUMBER: 01-80020-G3-11
AGING OF POST-PETITION LIABILITIES
MONTH OF SEPTEMBER 2001
<Table>
<Caption>
AD-VALOREM,
DAYS TOTAL TRADE ACCTS FED TAXES STATE TAXES OTHER TAXES OTHER
- ---- --------- ----------- --------- ----------- ----------- ---------
0-30 2,418,019 685,671 26,210 104,261 48,000 1,553,876
31-60 --
61-90 --
91 + --
TOTAL 2,418,019 685,671 26,210 104,261 48,000 1,553,876
</Table>
AGING OF ACCOUNTS RECEIVABLE
<Table>
<Caption>
MONTH JANUARY FEBRUARY MARCH APRIL MAY
----- --------- -------- ------- --------- ---------
0-30 DAYS 1,021,463 -- -- 1,199,526 834,036
31-60 DAYS 463,784 -- -- -- 359,858
61-90 DAYS 191,772 108,515 -- -- --
91 + DAYS 289,753 -- 102,258 200,272 100,136
TOTAL 1,966,772 108,515 102,258 1,399,798 1,294,030
</Table>
<Table>
<Caption>
MONTH JUNE JULY AUGUST SEPTEMBER
----- --------- --------- ------- ---------
0-30 DAYS 1,458,230 1,435,485 187,950 312,083
31-60 DAYS 94,421 57,212 12,222 1,427
61-90 DAYS 156,991 107,430 299,856 304,623
91 + DAYS 103,599 173,691 -- --
TOTAL 1,813,240 1,773,818 500,028 618,132
</Table>
MOR-5
CASE NAME: AMERICAN HOMESTAR OF LANCASTER, L.P. CASE NUMBER: 01-80020-G3-11
STATEMENT OF INCOME (LOSS)
<Table>
<Caption>
MONTH JANUARY FEBRUARY MARCH APRIL MAY
----- ------------ ------------ ------------ ------------ ------------
REVENUES (MOR-1) 1,041,962 1,158,506 1,146,901 1,539,269 2,005,150
TOTAL COST OF REVENUES 1,152,131 1,005,303 1,042,621 1,255,552 1,693,450
GROSS PROFIT (110,170) 153,203 104,279 283,717 311,700
OPERATING EXPENSES:
Selling & Marketing 83,514 92,701 120,504 111,313 120,986
General & Administrative 450,469 101,876 88,072 81,868 103,735
Insiders Compensation -- -- -- -- --
Professional Fees -- -- 2,801 7,500 250
Impairment for Assets 1,881,736 (2,034,144) (360,691) (508,512)
Other (attach list) -- -- --
------------ ------------ ------------ ------------ ------------
TOTAL OPERATING EXPENSES 533,983 2,076,313 (1,822,766) (160,011) (283,541)
============ ============ ============ ============ ============
INCOME BEFORE INT, DEPR/TAX (MOR-1) (644,152) (1,923,110) 1,927,046 443,728 595,241
============ ============ ============ ============ ============
INTEREST EXPENSE -- -- -- -- --
DEPRECIATION 14,084 16,078 14,046 14,036 12,989
OTHER (INCOME) EXPENSE * -- -- -- -- --
OTHER ITEMS ** -- -- -- -- --
------------ ------------ ------------ ------------ ------------
TOTAL INT, DEPR & OTHER ITEMS 14,084 16,078 14,046 14,036 12,989
------------ ------------ ------------ ------------ ------------
NET INCOME BEFORE TAXES (658,237) (1,939,187) 1,913,000 429,692 582,252
============ ============ ============ ============ ============
FEDERAL INCOME TAXES -- -- -- -- --
------------ ------------ ------------ ------------ ------------
NET INCOME (LOSS) (MOR-1) (658,237) (1,939,187) 1,913,000 429,692 582,252
============ ============ ============ ============ ============
</Table>
<Table>
<Caption>
MONTH JUNE JULY AUGUST SEPTEMBER FILING TO DATE
----- ------------ ------------ ------------ ------------ --------------
REVENUES (MOR-1) 2,003,587 1,882,396 1,851,481 2,216,045 13,803,334
TOTAL COST OF REVENUES 1,604,793 1,749,730 1,607,554 1,846,325 11,805,328
GROSS PROFIT 398,794 132,666 243,927 369,720 1,998,007
OPERATING EXPENSES:
Selling & Marketing 101,621 134,794 125,572 110,702 918,192
General & Administrative 117,509 63,641 72,602 55,612 684,915
Insiders Compensation -- -- -- -- --
Professional Fees -- -- -- 1,000 11,551
Impairment for Assets 67,754 (390,303) 240,966 (1,103,194)
Other (attach list) 105,182 -- -- 105,182
--
------------ ------------ ------------ ------------ ------------
TOTAL OPERATING EXPENSES 286,884 303,617 (192,129) 408,280 616,646
============ ============ ============ ============ ============
INCOME BEFORE INT, DEPR/TAX (MOR-1) 111,910 (170,951) 436,056 (38,560) 1,381,360
============ ============ ============ ============ ============
INTEREST EXPENSE --
DEPRECIATION 14,432 14,431 14,431 14,388 114,831
OTHER (INCOME) EXPENSE * -- -- -- (6,923) (6,923)
OTHER ITEMS ** -- -- -- -- --
------------ ------------ ------------ ------------ ------------
TOTAL INT, DEPR & OTHER ITEMS 14,432 14,431 14,431 7,465 107,908
------------ ------------ ------------ ------------ ------------
NET INCOME BEFORE TAXES 97,478 (185,382) 421,625 (46,025) 1,273,453
============ ============ ============ ============ ============
FEDERAL INCOME TAXES -- -- -- -- --
------------ ------------ ------------ ------------ ------------
NET INCOME (LOSS) (MOR-1) 97,478 (185,382) 421,625 (46,025) 1,273,453
============ ============ ============ ============ ============
</Table>
Accrual Accounting Required, Otherwise Footnote With Explanation
* Footnote Mandatory
** Unusual and/or infrequent item(s) outside the ordinary course of business;
requires footnote
MOR-6
CASE NAME: AMERICAN HOMESTAR OF LANCASTER, L.P. CASE NUMBER: 01-80020-G3-11
<Table>
<Caption>
MONTH MONTH MONTH MONTH MONTH
CASH RECEIPTS AND DISBURSEMENTS JANUARY FEBRUARY MARCH APRIL MAY
- ------------------------------- ---------- ---------- ---------- ---------- ----------
1. CASH - BEGINNING OF MONTH 609,820 273,965 428,641 645,885 913,058
RECEIPTS:
2. CASH SALES -- -- -- -- --
3. COLLECTION OF ACCOUNTS RECEIVABLE 71,526 1,032,618 1,849,068 1,555,381 2,024,438
4. LOANS & ADVANCES (ATTACH LIST) -- -- -- -- --
5. SALE OF ASSETS -- -- -- -- --
6. INTERCOMPANY 154,077 -- -- -- --
7. OTHER (ATTACH LIST) -- -- -- -- --
---------- ---------- ---------- ---------- ----------
TOTAL RECEIPTS 225,603 1,032,618 1,849,068 1,555,381 2,024,438
========== ========== ========== ========== ==========
(Withdrawal) Contribution by Individual Debtor MFR-2*
DISBURSEMENTS:
8. NET PAYROLL 10,724 8,398 -- -- --
9. PAYROLL TAXES PAID -- -- -- -- --
10. SALES, USE & OTHER TAXES PAID -- 44,111 1,036 82,312 --
11. SECURED / RENTAL / LEASES -- 1,140 10,819 5,669 9,187
12. UTILITIES -- 2,915 30,215 11,768 13,961
13. INSURANCE 2,516 54,296 48,352 43,550 3,162
14. INVENTORY PURCHASES 527,924 566,880 606,008 756,091 1,256,996
15. VEHICLE EXPENSES 225 2,006 910 -- 760
16. TRAVEL ENTERTAINMENT 880 324 1,355 610 911
17. REPAIRS, MAINTENANCE & SUPPLIES 149 84,139 108,394 62,498 125,910
18. ADMINISTRATIVE & SELLING 19,041 6,281 6,458 13,113 8,227
19. INTERCOMPANY 107,451 794,637 282,224 332,406
20. TRANSPORTATION -- 23,640 22,873 57,575
---------- ---------- ---------- ---------- ----------
TOTAL DISBURSEMENTS FROM OPERATIONS 561,458 877,942 1,631,824 1,280,709 1,809,095
========== ========== ========== ========== ==========
20. PROFESSIONAL FEES -- 4,094
21. U.S. TRUSTEE FEES -- 7,500 250
22. OTHER REORGANIZATION EXPENSES (ATTACH LIST) --
---------- ---------- ---------- ---------- ----------
TOTAL DISBURSEMENTS 561,458 877,942 1,631,824 1,288,209 1,813,439
========== ========== ========== ========== ==========
23. NET CASH FLOW (335,855) 154,677 217,244 267,172 210,998
---------- ---------- ---------- ---------- ----------
24. CASH - END OF MONTH (MOR-2) 273,965 428,641 645,885 913,057 1,124,056
========== ========== ========== ========== ==========
</Table>
<Table>
<Caption>
MONTH MONTH MONTH MONTH FILING TO
CASH RECEIPTS AND DISBURSEMENTS JUNE JULY AUGUST SEPTEMBER DATE
- ------------------------------- ---------- ---------- ---------- ---------- ----------
1. CASH - BEGINNING OF MONTH 1,124,056 490,269 374,476 1,821,775 273,965
RECEIPTS:
2. CASH SALES -- -- -- -- --
3. COLLECTION OF ACCOUNTS RECEIVABLE 1,748,487 2,046,107 2,350,535 2,291,022 14,897,656
4. LOANS & ADVANCES (ATTACH LIST) -- -- -- -- --
5. SALE OF ASSETS -- -- -- -- --
6. INTERCOMPANY -- -- 721,856 -- 721,856
7. OTHER (ATTACH LIST) -- -- -- -- --
---------- ---------- ---------- ---------- ----------
TOTAL RECEIPTS 1,748,487 2,046,107 3,072,391 2,291,022 15,619,512
========== ========== ========== ========== ==========
(Withdrawal) Contribution by Individual Debtor MFR-2*
DISBURSEMENTS:
8. NET PAYROLL -- -- -- -- 8,398
9. PAYROLL TAXES PAID -- -- -- -- --
10. SALES, USE & OTHER TAXES PAID 54,673 10,374 66,913 4,194 263,613
11. SECURED / RENTAL / LEASES 6,902 23,923 31,169 20,538 109,346
12. UTILITIES 9,573 43,704 15,114 18,436 145,687
13. INSURANCE 40,879 26,936 41,959 37,781 296,914
14. INVENTORY PURCHASES 1,281,539 1,503,941 1,382,145 1,218,133 8,571,734
15. VEHICLE EXPENSES 1,041 3,160 873 -- 8,750
16. TRAVEL ENTERTAINMENT 276 751 1,024 763 6,014
17. REPAIRS, MAINTENANCE & SUPPLIES 91,786 10,356 42,133 22,739 547,955
18. ADMINISTRATIVE & SELLING 17,686 41,725 11,561 13,545 118,596
19. INTERCOMPANY 833,140 426,048 -- 630,021 3,405,927
20. TRANSPORTATION 43,372 147,460
---------- ---------- ---------- ---------- ----------
TOTAL DISBURSEMENTS FROM OPERATIONS 2,380,866 2,090,917 1,592,890 1,966,149 13,630,392
========== ========== ========== ========== ==========
20. PROFESSIONAL FEES 1,408 1,886 1,629 9,017
21. U.S. TRUSTEE FEES -- -- -- -- 7,750
22. OTHER REORGANIZATION EXPENSES (ATTACH LIST) 70,983 30,316 1,998 103,297
---------- ---------- ---------- ---------- ----------
TOTAL DISBURSEMENTS 2,382,274 2,161,900 1,625,092 1,969,776 13,750,456
========== ========== ========== ========== ==========
23. NET CASH FLOW (633,787) (115,793) 1,447,299 321,246 1,869,056
---------- ---------- ---------- ---------- ----------
24. CASH - END OF MONTH (MOR-2) 490,269 374,476 1,821,775 2,143,023 2,143,023
========== ========== ========== ========== ==========
</Table>
* applies to Individual debtor's only.
MOR-7
CASE NAME: AMERICAN HOMESTAR OF LANCASTER, L.P. CASE NUMBER: 01-80020-G3-11
CASH ACCOUNT RECONCILIATION
MONTH OF SEPTEMBER 2001
<Table>
<Caption>
BANK NAME Bank of America Bank One Bank of America Bank One
- --------- --------------- ------------ --------------- ------------
ACCOUNT NUMBER # 3755500124 # 1826021048 # 1826021022
ACCOUNT TYPE OPERATING PAYROLL INVESTMENT SWEEP
------------ ------------ ------------ ------------
BANK BALANCE 1,959,568 182,138 -- --
DEPOSIT IN TRANSIT -- -- -- --
OUTSTANDING CHECKS -- -- -- --
------------ ------------ ------------ ------------
ADJUSTED BANK BALANCE 1,959,568 182,138 -- --
============ ============ ============ ============
BEGINNING CASH - PER BOOKS 1,317,416 109,968 393,077 --
RECEIPTS 2,291,022 -- -- --
TRANSFERS BETWEEN ACCOUNTS (309,114) 72,170 (393,077) --
(WITHDRAWAL) CONTRIBUTION - BY
INDIVIDUAL DEBTOR MFR-2 -- -- -- --
CHECKS / OTHER DISBURSEMENTS (1,339,755) -- -- --
------------ ------------ ------------ ------------
ENDING CASH - PER BOOKS 1,959,569 182,138 -- --
============ ============ ============ ============
</Table>
<Table>
<Caption>
BANK NAME Petty Cash
- --------- ------------
ACCOUNT NUMBER
ACCOUNT TYPE OTHER FUNDS TOTAL
------------ ------------
BANK BALANCE 1,315 2,143,021
DEPOSIT IN TRANSIT -- --
OUTSTANDING CHECKS -- --
------------ ------------
ADJUSTED BANK BALANCE 1,315 2,143,022
============ ============
BEGINNING CASH - PER BOOKS 1,315 1,821,776
RECEIPTS -- 2,291,022
TRANSFERS BETWEEN ACCOUNTS -- (630,021)
(WITHDRAWAL) CONTRIBUTION - BY
INDIVIDUAL DEBTOR MFR-2 -- --
CHECKS / OTHER DISBURSEMENTS -- (1,339,755)
------------ ------------
ENDING CASH - PER BOOKS 1,315 2,143,023
============ ============
</Table>
CASE NAME: AMERICAN HOMESTAR OF LANCASTER, L.P. CASE NUMBER: 01-80020-G3-11
PAYMENTS TO INSIDERS AND PROFESSIONALS
OF THE TOTAL DISBURSEMENTS SHOWN FOR THE MONTH, LIST THE AMOUNT PAID TO INSIDERS
(AS DEFINED IN SECTION 101(30)(A)-(F) OF THE U. S. BANKRUPTCY CODE) AND THE
PROFESSIONALS. ALSO, FOR INSIDERS IDENTIFY THE TYPE OF COMPENSATION PAID (E.G.,
SALARY, COMMISSION, BONUS, ETC.) (ATTACH ADDITIONAL PAGES AS NECESSARY).
<Table>
<Caption>
MONTH MONTH MONTH MONTH MONTH
INSIDERS: NAME/POSITION/COMP TYPE JANUARY FEBRUARY MARCH APRIL MAY
- --------------------------------- ------- -------- ----- ----- -----
1. Finis F. Teeter/President HSTR General Holdings -- -- -- -- --
2. Ronald Mccaslin/Vice President, Director HSTR Gen Hold -- -- -- -- --
3. Charles N. Carney, Jr./Vice President, Director HSTR Gen Hold -- -- -- -- --
4. Richard A. Carver/Vice President HSTR General Holdings -- -- -- -- --
5. Jackie Holland/Vice President HSTR General Holdings -- -- -- -- --
6. Craig A. Reynolds/Vice President, Secretary HSTR Gen Hold -- -- -- -- --
7. Kristi E. Gross/Assistant Secretary HSTR General Holdings -- -- -- -- --
8. Mary Morton/Assistant Secretary HSTR General Holdings -- -- -- -- --
9. Dennis L. Jones/President, Director HSTR Mfg Holdings -- -- -- -- --
10. Ronald Krueger/VP, Treasurer, Director HSTR Mfg Holdings -- -- -- -- --
11. Robert Grier/Secretary, Director HSTR Mfg Holdings -- -- -- -- --
12. Beth L. Peoples/Asst Secretary, Asst Treasurer HSTR Mfg Hold -- -- -- -- --
------- -------- ----- ----- -----
TOTAL INSIDERS (MOR-1) -- -- -- -- --
======= ======== ===== ===== =====
</Table>
<Table>
<Caption>
MONTH MONTH MONTH MONTH
INSIDERS: NAME/POSITION/COMP TYPE JUNE JULY AUGUST SEPTEMBER
- --------------------------------- ----- ----- ------ ---------
1. Finis F. Teeter/President HSTR General Holdings -- -- -- --
2. Ronald Mccaslin/Vice President, Director HSTR Gen Hold -- -- -- --
3. Charles N. Carney, Jr./Vice President, Director HSTR Gen Hold -- -- -- --
4. Richard A. Carver/Vice President HSTR General Holdings -- -- -- --
5. Jackie Holland/Vice President HSTR General Holdings -- -- -- --
6. Craig A. Reynolds/Vice President, Secretary HSTR Gen Hold -- -- -- --
7. Kristi E. Gross/Assistant Secretary HSTR General Holdings -- -- -- --
8. Mary Morton/Assistant Secretary HSTR General Holdings -- -- -- --
9. Dennis L. Jones/President, Director HSTR Mfg Holdings -- -- -- --
10. Ronald Krueger/VP, Treasurer, Director HSTR Mfg Holdings -- -- -- --
11. Robert Grier/Secretary, Director HSTR Mfg Holdings -- -- -- --
12. Beth L. Peoples/Asst Secretary, Asst Treasurer HSTR Mfg Hold -- -- -- --
----- ----- ------ ------
TOTAL INSIDERS (MOR-1) -- -- -- --
===== ===== ====== ======
</Table>
<Table>
<Caption>
MONTH MONTH MONTH MONTH MONTH
PROFESSIONALS/NAME/ORDER DATE JANUARY FEBRUARY MARCH APRIL MAY
- ----------------------------- ------- -------- ----- ----- -----
1. Floyd, Isgur, Rios & Warlich -- -- -- -- 1,518
2. Strategic Capital Corporation -- -- -- -- 2,576
3. -- -- -- -- 0
4. -- -- -- -- 0
5. -- -- -- -- 0
6. -- -- -- -- 0
------- -------- ----- ----- -----
TOTAL PROFESSIONALS (MOR-1) -- -- -- -- 4,094
======= ======== ===== ===== =====
</Table>
<Table>
<Caption>
MONTH MONTH MONTH MONTH
PROFESSIONALS/NAME/ORDER DATE JUNE JULY AUGUST SEPTEMBER
- ----------------------------- -------- -------- -------- ---------
1. Floyd, Isgur, Rios & Warlich 116.00 -- -- --
2. Strategic Capital Corporation 1,292.00 2,135.00 1,316.00 1,498.00
3. -- -- -- --
4. -- -- -- --
5. -- -- -- --
6. -- -- -- --
-------- -------- -------- --------
TOTAL PROFESSIONALS (MOR-1) 1,408.00 2,135.00 1,316.00 1,498.00
======== ======== ======== ========
</Table>
MOR-9
UNITED STATES BANKRUPTCY COURT
SOUTHERN DISTRICT OF TEXAS
HOUSTON DIVISION
<Table>
CASE NAME: AMERICAN HOMESTAR OF NORTH CAROLINA, INC. PETITION DATE: JANUARY 11, 2001
CASE NUMBER: 01-80021-G3-11
MONTHLY OPERATING REPORT SUMMARY FOR MONTH SEPTEMBER YEAR 2001
--------- ----
MONTH JANUARY FEBRUARY MARCH APRIL MAY
----- ------- ---------- --------- -------- ---------
REVENUES (MOR-6) (135) -- -- 39,600 1,020
INCOME BEFORE INT, DEPREC./TAX (MOR-6) 332 (2,626,834) (358,948) 106,565 (446,015)
NET INCOME (LOSS) (MOR-6) 332 (2,626,834) (358,948) 106,565 (446,015)
PAYMENTS TO INSIDERS (MOR-9) -- -- -- -- --
PAYMENTS TO PROFESSIONALS (MOR-9) -- -- -- -- --
TOTAL DISBURSEMENTS (MOR-8) -- 265,215 5,432 -- --
<Caption>
MONTH JUNE JULY AUGUST SEPTEMBER
----- -------- -------- ------ ---------
REVENUES (MOR-6) -- -- -- --
INCOME BEFORE INT, DEPREC./TAX (MOR-6) (77,314) (15,768) 3,918 1,690
NET INCOME (LOSS) (MOR-6) (77,314) (15,768) 3,918 (310)
PAYMENTS TO INSIDERS (MOR-9) -- -- -- --
PAYMENTS TO PROFESSIONALS (MOR-9) -- -- -- 448
TOTAL DISBURSEMENTS (MOR-8) 40,977 7,967 1,095 38,935
</Table>
*** The ORIGINAL of this document MUST BE FILED with the United States
Bankruptcy Court and a COPY MUST BE SENT to the United States Trustee ***
- --------------------------------------------------------------------------------
REQUIRED INSURANCE MAINTAINED
AS OF SIGNATURE DATE
<Table>
<Caption>
EXP.
DATE
----
CASUALTY YES (X) NO ( ) 06/30/02
LIABILITY YES (X) NO ( ) 06/30/02
VEHICLE YES (X) NO ( ) 06/30/02
WORKER'S YES (X) NO ( ) 03/31/02
OTHER - DIRECTOR/OFFICER YES (X) NO ( ) 01/23/02
</Table>
- --------------------------------------------------------------------------------
ATTORNEY NAME:
FIRM: Floyd, Isgur, Rios & Warlich, P. C.
Address: 700 Louisiana, Suite 4600
Address:
City, State, ZIP: Houston, TX 77002-2732
Telephone: 713-222-1470
Fax: 713-222-1475
- --------------------------------------------------------------------------------
<Table>
<Caption>
CIRCLE ONE
Are all accounts receivable being collected within terms? YES NO
Are all posted-petition liabilities, including taxes,
being paid within terms? YES NO
Have any pre-petition liabilities been paid?
If so, describe. PURSUANT TO COURT ORDER AUTHORIZING
PAYMENTS OF PRE-PETITION WAGES, SALARIES, COMMISSIONS AND
COMPENSATION SIGNED JANUARY 11, 2001.
Are all funds received being deposited into DIP bank accounts? YES NO
Were any assets disposed of outside the normal course of business? YES NO
If so, describe.
-------------------------------------------------
- ------------------------------------------------------------------.
Are all U.S. Trustee Quarterly Fee Payments current? YES NO
What is the status of your Plan of Reorganization? PLAN OF REORGANIZATION
CONFIRMED BY COURT ON AUGUST 14, 2001. EFFECTIVE DATE OF REORGANIZATION -
OCTOBER 3, 2001.
</Table>
I certify under penalty of perjury that the
following complete Monthly Operating Report
(MOR), consisting of MOR-1 through MOR-9
plus attachments, is true and correct.
SIGNED /s/ CRAIG A. REYNOLDS
-------------------------------------
TITLE Vice President of Finance
-------------------------------------
MOR-1
CASE NAME: AMERICAN HOMESTAR OF NORTH CAROLINA, INC. CASE NUMBER: 01-80021-G3-11
COMPARATIVE BALANCE SHEETS
<Table>
<Caption>
MONTH MONTH MONTH MONTH MONTH
ASSETS FILING DATE* JANUARY FEBRUARY MARCH APRIL MAY
------ ------------ --------- --------- --------- --------- ---------
CURRENT ASSETS
Cash 11,429 -- 18,303 1,122 45,920 45,920
Accounts Receivable, Net -- -- -- -- 74,151 74,151
Inventory: Lower of Cost or Market -- -- -- -- -- --
Prepaid Expenses -- -- -- -- -- --
Investments -- -- -- -- -- --
Other -- -- -- -- -- --
--------- --------- --------- --------- --------- ---------
TOTAL CURRENT ASSETS 11,429 -- 18,303 1,122 120,071 120,071
========= ========= ========= ========= ========= =========
PROPERTY, PLANT&EQUIP, @ COST 3,480,130 3,480,130 3,480,130 3,480,130 3,480,130 3,480,130
Less Accumulated Depreciation 569,965 569,965 569,965 569,965 569,965 569,965
Less Reserve for Impairment 1,455,083 1,455,083 1,455,083 1,910,165
--------- --------- --------- --------- --------- ---------
Net Book Value of PP & E 2,910,165 2,910,165 1,455,083 1,455,083 1,455,083 1,000,000
========= ========= ========= ========= ========= =========
OTHER ASSETS:
1. Tax Deposits -- -- -- -- -- --
2. Investments in Subs -- -- -- -- -- --
3. Deposits -- -- -- -- -- --
4. Interests in Insurance Policies -- -- -- -- -- --
5. Note Receivable -- -- -- -- -- --
6. Other Assets 248,148 248,148 248,148 248,148 248,148 --
7. Intercompany 2,893,800 2,905,772 1,465,608 1,465,608 1,480,863 1,480,863
8. Post Petition Intercompany 264,324 -- -- --
--------- --------- --------- --------- --------- ---------
TOTAL ASSETS 6,063,543 6,064,085 3,451,466 3,169,961 3,304,165 2,600,934
========= ========= ========= ========= ========= =========
<Caption>
MONTH MONTH MONTH MONTH
ASSETS JUNE JULY AUGUST SEPTEMBER
------ --------- --------- --------- ---------
CURRENT ASSETS
Cash 4,969 2 41,435 998
Accounts Receivable, Net -- -- -- --
Inventory: Lower of Cost or Market -- -- (35,954) --
Prepaid Expenses -- 3,455 3,455 3,455
Investments -- -- -- --
Other -- -- -- --
--------- --------- --------- ---------
TOTAL CURRENT ASSETS 4,969 3,457 8,936 4,453
========= ========= ========= =========
PROPERTY, PLANT&EQUIP, @ COST 3,480,130 3,480,130 3,480,130 3,480,130
Less Accumulated Depreciation 569,965 569,965 569,965 569,965
Less Reserve for Impairment 1,910,165 1,910,165 1,910,165 1,910,165
--------- --------- --------- ---------
Net Book Value of PP & E 1,000,000 1,000,000 1,000,000 1,000,000
========= ========= ========= =========
OTHER ASSETS:
1. Tax Deposits -- -- -- --
2. Investments in Subs -- -- -- --
3. Deposits -- -- -- --
4. Interests in Insurance Policies -- -- -- --
5. Note Receivable -- -- -- --
6. Other Assets -- -- -- --
7. Intercompany 1,480,863 1,480,863 1,480,863 1,480,863
8. Post Petition Intercompany 14,338 3,666 2,665 6,665
--------- --------- --------- ---------
TOTAL ASSETS 2,500,170 2,487,986 2,492,465 2,491,982
========= ========= ========= =========
</Table>
* Per Schedules and Statement of Affairs
MOR-2
CASE NAME: AMERICAN HOMESTAR OF NORTH CAROLINA, INC. CASE NUMBER: 01-80021-G3-11
COMPARATIVE BALANCE SHEETS
<Table>
<Caption>
LIABILITIES & OWNER'S MONTH MONTH MONTH MONTH MONTH
EQUITY FILING DATE* JANUARY FEBRUARY MARCH APRIL MAY
- --------------------- ------------ --------- --------- --------- --------- ---------
LIABILITIES:
POST-PETITION LIABILITIES (MOR-4) 874 -- 14,770 41,708 82,470
--------- --------- --------- --------- --------
PRE-PETITION LIABILITIES:
Notes Payable - Secured -- -- -- -- -- --
Priority Debt 30,065 30,065 30,065 42,683 42,683 12,619
Federal Income Tax (16,000) (16,000) (16,000) (16,000) (16,000) --
Fica/withholding -- -- -- -- -- --
Unsecured Debt 217,336 217,336 232,092 281,815 282,515 (1,398
Other -- -- -- -- -- --
--------- --------- --------- --------- --------- ---------
TOTAL PRE-PETITION LIABILITIES 231,400 231,400 246,157 308,498 309,198 11,221
--------- --------- --------- --------- --------- ---------
TOTAL LIABILITIES 231,400 232,275 246,157 323,268 350,907 93,691
========= ========= ========= ========= ========= =========
OWNER'S EQUITY (DEFICIT):
Preferred Stock -- -- -- -- -- --
Common Stock 100,000 100,000 100,000 100,000 100,000 100,000
ADDITIONAL PAID-IN CAPITAL 2,086,402 2,086,402 2,086,402 2,086,402 2,086,402 2,086,402
RETAINED EARNINGS: Filing Date 3,645,741 3,645,741 3,645,741 3,645,741 3,645,741 3,645,741
RETAINED EARNINGS: Post Filing Date -- (332) (2,626,834) (2,985,450) (2,878,885) (3,324,900
--------- --------- --------- --------- --------- ---------
TOTAL OWNER'S EQUITY (NET WORTH) 5,832,143 5,831,811 3,205,309 2,846,693 2,953,258 2,507,243
--------- --------- --------- --------- --------- ---------
TOTAL LIABILITIES &
OWNER'S EQUITY 6,063,543 6,064,085 3,451,466 3,169,961 3,304,165 2,600,934
========= ========= ========= ========= ========= =========
<Caption>
LIABILITIES & OWNER'S MONTH MONTH MONTH MONTH
EQUITY JUNE JULY AUGUST SEPTEMBER
- --------------------- --------- --------- --------- ---------
LIABILITIES:
POST-PETITION LIABILITIES (MOR-4) 7,530 11,114 11,676 11,502
--------- --------- --------- ---------
PRE-PETITION LIABILITIES:
Notes Payable - Secured -- -- -- --
Priority Debt 12,516 12,516 12,516 12,516
Federal Income Tax -- -- -- --
Fica/withholding -- -- -- --
Unsecured Debt 50,195 50,165 50,195 50,195
Other -- -- -- --
--------- --------- --------- ---------
TOTAL PRE-PETITION LIABILITIES 62,711 62,711 62,711 62,711
--------- --------- --------- ---------
TOTAL LIABILITIES 70,241 73,825 74,387 74,213
========= ========= ========= =========
OWNER'S EQUITY (DEFICIT):
Preferred Stock
Common Stock 100,000 100,000 100,000 100,000
ADDITIONAL PAID-IN CAPITAL 2,086,402 2,086,402 2,086,402 2,086,402
RETAINED EARNINGS: Filing Date 3,645,741 3,645,741 3,645,741 3,645,741
RETAINED EARNINGS: Post Filing Date (3,402,214) (3,417,982) (3,414,064) (3,414,374)
--------- --------- --------- ---------
TOTAL OWNER'S EQUITY (NET WORTH) 2,429,929 2,414,161 2,418,078 2,417,768
--------- --------- --------- ---------
TOTAL LIABILITIES &
OWNER'S EQUITY 2,500,170 2,487,986 2,492,465 2,491,982
========= ========= ========= =========
</Table>
* Per Schedules and Statement of Affairs
MOR-3
CASE NAME: AMERICAN HOMESTAR OF NORTH CAROLINA, INC. CASE NUMBER: 01-80021-G3-11
SCHEDULE OF POST-PETITION LIABILITIES
<Table>
<Caption>
MONTH MONTH MONTH MONTH MONTH
JANUARY FEBRUARY MARCH APRIL MAY
--------- --------- --------- --------- ---------
TRADE ACCOUNTS PAYABLE -- -- 1,782 17,037 57,548
--------- --------- --------- --------- ---------
TAX PAYABLE
Federal Payroll Taxes -- -- -- -- --
State Payroll & Sales -- -- -- -- --
Ad Valorem Taxes -- -- -- -- --
Other Taxes -- -- -- -- --
--------- --------- --------- --------- ---------
TOTAL TAXES PAYABLE -- -- -- -- --
========= ========= ========= ========= =========
SECURED DEBT POST-PETITION -- -- -- -- --
ACCRUED INTEREST PAYABLE -- -- -- -- --
* ACCRUED PROFESSIONAL FEES -- -- -- -- --
OTHER ACCRUED LIABILITIES: -- -- -- -- --
1. Intercompany 874 -- 12,988 24,672 24,922
2. -- -- -- -- --
3. -- -- -- -- --
--------- --------- --------- --------- ---------
TOTAL POST-PETITION LIABILITIES (MOR-3) 874 -- 14,770 41,708 82,470
========= ========= ========= ========= =========
<Caption>
MONTH MONTH MONTH MONTH
JUNE JULY AUGUST SEPTEMBER
--------- --------- --------- ---------
TRADE ACCOUNTS PAYABLE 7,530 11,114 11,676 11,502
--------- --------- --------- ---------
TAX PAYABLE
Federal Payroll Taxes -- -- -- --
State Payroll & Sales -- -- -- --
Ad Valorem Taxes -- -- -- --
Other Taxes -- -- -- --
--------- --------- --------- ---------
TOTAL TAXES PAYABLE -- -- -- --
========= ========= ========= =========
SECURED DEBT POST-PETITION -- -- -- --
ACCRUED INTEREST PAYABLE -- -- -- --
* ACCRUED PROFESSIONAL FEES -- -- -- --
OTHER ACCRUED LIABILITIES: -- -- -- --
1. Intercompany -- -- -- --
2. -- -- -- --
3. -- -- -- --
--------- --------- --------- ---------
TOTAL POST-PETITION LIABILITIES (MOR-3) 7,530 11,114 11,676 11,502
========= ========= ========= =========
</Table>
* Payment Requires Court Approval.
MOR-4
CASE NAME: AMERICAN HOMESTAR OF NORTH CAROLINA, INC. CASE NUMBER: 01-80021-G3-11
AGING OF POST-PETITION LIABILITIES
MONTH OF SEPTEMBER 2001
<Table>
<Caption>
AD-VALOREM,
DAYS TOTAL TRADE ACCTS FED TAXES STATE TAXES OTHER TAXES OTHER
- ---- ----- ----------- --------- ----------- ----------- -----
0-30 11,502 11,502 -- -- -- --
31-60 --
61-90 --
91 + --
TOTAL 11,502 11,502 -- -- -- --
</Table>
AGING OF ACCOUNTS RECEIVABLE
<Table>
<Caption>
MONTH JANUARY FEBRUARY MARCH APRIL MAY
----- ------- -------- ----- ------ -----
0-30 DAYS -- -- -- -- --
31-60 DAYS -- -- -- -- --
61-90 DAYS -- -- -- -- --
91 + DAYS -- -- -- 74,151 74,151
TOTAL -- -- -- 74,151 74,151
<Caption>
MONTH JUNE JULY AUGUST SEPTEMBER
----- ---- ---- ------ ---------
0-30 DAYS -- -- -- --
31-60 DAYS -- -- -- --
61-90 DAYS -- -- -- --
91 + DAYS -- -- -- --
TOTAL -- -- -- --
</Table>
MOR-5
CASE NAME: AMERICAN HOMESTAR OF NORTH CAROLINA, INC. CASE NUMBER: 01-80021-G3-11
STATEMENT OF INCOME (LOSS)
<Table>
<Caption>
MONTH JANUARY FEBRUARY MARCH APRIL MAY
----- --------- ---------- -------- ------- --------
REVENUES (MOR-1) (135) -- -- 39,600 1,020
TOTAL COST OF REVENUES 412 64 2,190 -- 40,804
GROSS PROFIT (547) (64) (2,190) 39,600 (39,784)
OPERATING EXPENSES:
Selling & Marketing 547 -- -- -- --
General & Administrative (1,426) -- 490 -- 2,309
Insiders Compensation -- -- -- -- --
Professional Fees -- -- 17,312 -- --
Impairment of Assets -- 2,626,770 338,957 (66,965) 403,922
Other (attach list) -- -- -- -- --
------ ---------- -------- ------- --------
TOTAL OPERATING EXPENSES (879) 2,626,770 356,759 (66,965) 406,231
====== ========== ======== ======= ========
INCOME BEFORE INT, DEPR/TAX (MOR-1) 332 (2,626,834) (358,948) 106,565 (446,015)
====== ========== ======== ======= ========
INTEREST EXPENSE -- -- -- -- --
DEPRECIATION -- -- -- -- --
OTHER (INCOME) EXPENSE * -- -- -- -- --
OTHER ITEMS ** -- -- -- -- --
------ ---------- -------- ------- --------
TOTAL INT, DEPR & OTHER ITEMS -- -- -- -- --
------ ---------- -------- ------- --------
NET INCOME BEFORE TAXES 332 (2,626,834) (358,948) 106,565 (446,015)
====== ========== ======== ======= ========
FEDERAL INCOME TAXES -- -- -- -- --
------ ---------- -------- ------- --------
NET INCOME (LOSS) (MOR-1) 332 (2,626,834) (358,948) 106,565 (446,015)
====== ========== ======== ======= ========
<Caption>
MONTH JUNE JULY AUGUST SEPTEMBER FILING TO DATE
----- ------- ------- ------ --------- --------------
REVENUES (MOR-1) -- -- -- -- 40,620
TOTAL COST OF REVENUES 559 12,122 (4,419) (2,276) 51,319
GROSS PROFIT (559) (12,122) 4,419 2,276 (10,699)
OPERATING EXPENSES:
Selling & Marketing -- -- -- -- --
General & Administrative -- 236 501 586 3,536
Insiders Compensation -- -- -- -- --
Professional Fees -- -- -- -- 17,312
Impairment of Assets 76,755 3,379,439
Other (attach list) -- 3,410 -- -- 3,410
------- ------- ------ ------ ----------
TOTAL OPERATING EXPENSES 76,755 3,646 501 586 3,403,696
======= ======= ====== ====== ==========
INCOME BEFORE INT, DEPR/TAX (MOR-1) (77,314) (15,768) 3,918 1,690 (3,414,396)
======= ======= ====== ====== ==========
INTEREST EXPENSE -- -- -- -- --
DEPRECIATION -- -- -- -- --
OTHER (INCOME) EXPENSE * -- -- -- 2,000 --
OTHER ITEMS ** -- -- -- -- --
------- ------- ------ ------ ----------
TOTAL INT, DEPR & OTHER ITEMS -- -- -- 2,000 --
------- ------- ------ ------ ----------
NET INCOME BEFORE TAXES (77,314) (15,768) 3,918 (310) (3,414,396)
======= ======= ====== ====== ==========
FEDERAL INCOME TAXES -- -- -- -- --
------- ------- ------ ------ ----------
NET INCOME (LOSS) (MOR-1) (77,314) (15,768) 3,918 (310) (3,414,396)
======= ======= ====== ====== ==========
</Table>
Accrual Accounting Required, Otherwise Footnote With Explanation
* Footnote Mandatory
** Unusual and/or infrequent item(s) outside the ordinary course of business;
requires footnote
MOR-6
CASE NAME: AMERICAN HOMESTAR OF NORTH CAROLINA, INC. CASE NUMBER: 01-80021-G3-11
<Table>
<Caption>
MONTH MONTH MONTH MONTH MONTH
CASH RECEIPTS AND DISBURSEMENTS JANUARY FEBRUARY MARCH APRIL MAY
- ------------------------------- -------- -------- ------ ------ ------
1. CASH - BEGINNING OF MONTH 11,429 -- 18,303 1,122 45,920
RECEIPTS:
2. CASH SALES -- -- -- 39,600 --
3. COLLECTION OF ACCOUNTS RECEIVABLE -- -- -- 17,568 --
4. LOANS & ADVANCES (attach list) -- -- -- -- --
5. SALE OF ASSETS -- -- -- -- --
6. INTERCOMPANY 283,299 -- -- --
7. OTHER - TAX REFUND -- 219 -- -- --
-------- -------- ------ ------ ------
TOTAL RECEIPTS -- 283,518 -- 57,168 --
======== ======== ====== ====== ======
(Withdrawal) Contribution by Individual Debtor MFR-2*
DISBURSEMENTS:
7. NET PAYROLL -- -- -- -- --
8. PAYROLL TAXES PAID -- -- -- -- --
9. SALES, USE & OTHER TAXES PAID -- -- -- -- --
10. SECURED / RENTAL / LEASES -- 265,198 -- -- --
11. UTILITIES -- -- -- -- --
12. INSURANCE -- -- 5,432 -- --
13. INVENTORY PURCHASES -- -- -- -- --
14. VEHICLE EXPENSES -- -- -- -- --
15. TRAVEL ENTERTAINMENT -- -- -- -- --
16. REPAIRS, MAINTENANCE & SUPPLIES -- -- -- -- --
17. ADMINISTRATIVE & SELLING -- 17 -- -- --
18. INTERCOMPANY 11,429 -- 11,748 12,370 --
19. OTHER (ATTACH LIST) -- -- -- -- --
-------- -------- ------ ------ ------
TOTAL DISBURSEMENTS FROM OPERATIONS 11,429 265,215 17,181 12,370 --
======== ======== ====== ====== ======
20. PROFESSIONAL FEES -- -- -- -- --
21. U.S. TRUSTEE FEES -- -- -- -- --
22. OTHER REORGANIZATION EXPENSES (ATTACH LIST) -- -- -- -- --
-------- -------- ------ ------ ------
TOTAL DISBURSEMENTS 11,429 265,215 17,181 12,370 --
======== ======== ====== ====== ======
23. NET CASH FLOW (11,429) 18,303 (17,181) 44,798 --
-------- -------- ------ ------ ------
24. CASH - END OF MONTH (MOR-2) 0 18,303 1,122 45,920 45,920
======== ======== ====== ====== ======
<Caption>
MONTH MONTH MONTH MONTH FILING TO
CASH RECEIPTS AND DISBURSEMENTS JUNE JULY AUGUST SEPTEMBER DATE
- ------------------------------- ------ ------ ------ --------- ---------
1. CASH - BEGINNING OF MONTH 45,920 4,969 2 41,435 --
RECEIPTS:
2. CASH SALES -- -- -- -- 39,600
3. COLLECTION OF ACCOUNTS RECEIVABLE 219 35,954 14,129 67,870
4. LOANS & ADVANCES (attach list) -- -- -- -- --
5. SALE OF ASSETS -- -- -- -- --
6. INTERCOMPANY 3,000 6,574 -- 292,872
7. OTHER - TAX REFUND -- -- -- -- 219
------ ------ ------ ------- -------
TOTAL RECEIPTS 219 3,000 42,528 14,129 400,562
====== ====== ====== ======= =======
(Withdrawal) Contribution by Individual Debtor MFR-2*
DISBURSEMENTS:
7. NET PAYROLL -- -- -- -- --
8. PAYROLL TAXES PAID -- -- -- -- --
9. SALES, USE & OTHER TAXES PAID -- -- -- 2,000 2,000
10. SECURED / RENTAL / LEASES -- -- -- -- 265,198
11. UTILITIES 928 907 128 517 2,479
12. INSURANCE 20,000 3,412 -- -- 28,844
13. INVENTORY PURCHASES 20,050 3,649 -- 35,954 59,652
14. VEHICLE EXPENSES -- -- -- -- --
15. TRAVEL ENTERTAINMENT -- -- -- -- --
16. REPAIRS, MAINTENANCE & SUPPLIES -- -- -- -- --
17. ADMINISTRATIVE & SELLING -- -- 135 16 168
18. INTERCOMPANY 193 15,631 39,943
19. OTHER (ATTACH LIST) -- -- -- -- --
------ ------ ------ ------- -------
TOTAL DISBURSEMENTS FROM OPERATIONS 41,170 7,967 263 54,118 398,284
====== ====== ====== ======= =======
20. PROFESSIONAL FEES -- -- 832 -- 832
21. U.S. TRUSTEE FEES -- -- --
22. OTHER REORGANIZATION EXPENSES (attach list) -- -- -- 448 448
------ ------ ------ ------- -------
TOTAL DISBURSEMENTS 41,170 7,967 1,095 54,566 399,564
====== ====== ====== ======= =======
23. NET CASH FLOW (40,951) (4,967) 41,433 (40,437) 998
------ ------ ------ ------- -------
24. CASH - END OF MONTH (MOR-2) 4,969 2 41,435 998 998
====== ====== ====== ======= =======
</Table>
* applies to Individual debtor's only.
MOR-7
CASE NAME: AMERICAN HOMESTAR OF NORTH CAROLINA, INC. CASE NUMBER: 01-80021-G3-11
CASH ACCOUNT RECONCILIATION
MONTH OF SEPTEMBER 2001
<Table>
<Caption>
BANK NAME Bank of America Bank One
- --------- --------------- ------------
ACCOUNT NUMBER # 3755500276 # 1565808928
ACCOUNT TYPE OPERATING OPERATING TOTAL
------------ ------------ --------
BANK BALANCE 998 -- 998
DEPOSIT IN TRANSIT -- -- --
OUTSTANDING CHECKS -- -- --
-------- ----- --------
ADJUSTED BANK BALANCE 998 -- 998
======== ===== ========
BEGINNING CASH - PER BOOKS 41,435 -- 41,435
RECEIPTS 14,129 -- 14,129
TRANSFERS BETWEEN ACCOUNTS (15,631) -- (15,631)
(WITHDRAWAL) CONTRIBUTION - BY INDIVIDUAL DEBTOR MFR-2 --
CHECKS / OTHER DISBURSEMENTS (38,935) -- (38,935)
-------- ----- --------
ENDING CASH - PER BOOKS 998 -- 998
======== ===== ========
</Table>
MOR-8
CASE NAME: AMERICAN HOMESTAR OF NORTH CAROLINA, INC. CASE NUMBER: 01-80021-G3-11
PAYMENTS TO INSIDERS AND PROFESSIONALS
OF THE TOTAL DISBURSEMENTS SHOWN FOR THE MONTH, LIST THE AMOUNT PAID TO INSIDERS
(AS DEFINED IN SECTION 101(30)(A)-(F) OF THE U. S. BANKRUPTCY CODE) AND THE
PROFESSIONALS. ALSO, FOR INSIDERS IDENTIFY THE TYPE OF COMPENSATION PAID (E.G.,
SALARY, COMMISSION, BONUS, ETC.) (ATTACH ADDITIONAL PAGES AS NECESSARY).
<Table>
<Caption>
MONTH MONTH MONTH MONTH MONTH
INSIDERS: NAME/POSITION/COMP TYPE JANUARY FEBRUARY MARCH APRIL MAY
- --------------------------------- ------- -------- ----- ----- -----
1. Ronald McCaslin/President, Director -- -- -- -- --
2. Jackie Holland/Vice President -- -- -- -- --
3. Craig A. Reynolds/Secretary, Director -- -- -- -- --
4. Kristi E. Gross/Assistant Secretary -- -- -- -- --
5. -- -- -- -- --
6. -- -- -- -- --
------- -------- ----- ----- -----
TOTAL INSIDERS (MOR-1) -- -- -- -- --
======= ======== ===== ===== =====
<Caption>
MONTH MONTH MONTH MONTH
INSIDERS: NAME/POSITION/COMP TYPE JUNE JULY AUGUST SEPTEMBER
- --------------------------------- ----- ----- ------ ---------
1. Ronald McCaslin/President, Director -- -- -- --
2. Jackie Holland/Vice President -- -- -- --
3. Craig A. Reynolds/Secretary, Director -- -- -- --
4. Kristi E. Gross/Assistant Secretary -- -- -- --
5. -- -- -- --
6. -- -- -- --
----- ----- ------ ---------
TOTAL INSIDERS (MOR-1) -- -- -- --
===== ===== ====== =========
</Table>
<Table>
<Caption>
MONTH MONTH MONTH MONTH MONTH
PROFESSIONALS/NAME/ORDER DATE JANUARY FEBRUARY MARCH APRIL MAY
- ----------------------------- ------- -------- ----- ----- -----
1. Strategic Capital Corp. -- -- -- -- --
2. Floyd Isgur Rios -- -- -- -- --
3. -- -- -- -- --
4. -- -- -- -- --
5. -- -- -- -- --
6. -- -- -- -- --
------- -------- ----- ----- ----
TOTAL PROFESSIONALS (MOR-1) -- -- -- -- --
======= ======== ===== ===== ====
<Caption>
MONTH MONTH MONTH MONTH
PROFESSIONALS/NAME/ORDER DATE JUNE JULY AUGUST AUGUST
- ----------------------------- ----- ----- ------ ------
1. Strategic Capital Corp. -- -- 616.00 448.00
2. Floyd Isgur Rios -- -- 216.00 --
3. -- -- -- --
4. -- -- -- --
5. -- -- -- --
6. -- -- -- --
---- ---- ------ ------
TOTAL PROFESSIONALS (MOR-1) -- -- 832.00 448.00
==== ==== ====== ======
</Table>
MOR-9
UNITED STATES BANKRUPTCY COURT
SOUTHERN DISTRICT OF TEXAS
HOUSTON DIVISION
<Table>
CASE NAME: AMERICAN HOMESTAR WEST, INC. PETITION DATE: JANUARY 11, 2001
CASE NUMBER: 01-80022-G3-11
MONTHLY OPERATING REPORT SUMMARY FOR MONTH SEPTEMBER YEAR 2001
--------- ----
MONTH JANUARY FEBRUARY MARCH APRIL MAY
----- ---------- ---------- ---------- ---------- ----------
REVENUES (MOR-6) 791,859 1,683,198 878,992 -- --
INCOME BEFORE INT, DEPREC./TAX
(MOR-6) (813,640) (6,565,128) 2,871,438 185,233 234,224
NET INCOME (LOSS) (MOR-6) (876,225) (6,622,837) 2,814,018 185,233 234,224
PAYMENTS TO INSIDERS (MOR-9) -- -- -- -- --
PAYMENTS TO PROFESSIONALS (MOR-9) -- -- -- -- 18,832
TOTAL DISBURSEMENTS (MOR-8) 315,901 1,011,533 591,671 71,326 38,457
<Caption>
MONTH JUNE JULY AUGUST SEPTEMBER
----- ---------- ---------- ---------- ----------
REVENUES (MOR-6) 600 -- -- --
INCOME BEFORE INT, DEPREC./TAX
(MOR-6) 160,566 280,427 375,691 97,330
NET INCOME (LOSS) (MOR-6) 160,566 280,427 375,691 119,906
PAYMENTS TO INSIDERS (MOR-9) -- -- -- --
PAYMENTS TO PROFESSIONALS (MOR-9) 3,226 2,380 2,065 3,710
TOTAL DISBURSEMENTS (MOR-8) 50,603 10,656 13,446 9,286
</Table>
*** The ORIGINAL of this document MUST BE FILED with the United States
Bankruptcy Court and a COPY MUST BE SENT to the United States Trustee ***
- --------------------------------------------------------------------------------
REQUIRED INSURANCE MAINTAINED
AS OF SIGNATURE DATE
<Table>
<Caption>
EXP.
DATE
----
CASUALTY YES (X) NO ( ) 06/30/02
LIABILITY YES (X) NO ( ) 06/30/02
VEHICLE YES (X) NO ( ) 06/30/02
WORKER'S YES (X) NO ( ) 04/01/02
OTHER - DIRECTOR/OFFICER YES (X) NO ( ) 01/23/02
</Table>
- --------------------------------------------------------------------------------
ATTORNEY NAME:
FIRM: Floyd, Isgur, Rios & Warlich, P. C.
Address: 700 Louisiana, Suite 4600
Address:
City, State, ZIP: Houston, TX 77002-2732
Telephone: 713-222-1470
Fax: 713-222-1475
- --------------------------------------------------------------------------------
<Table>
<Caption>
CIRCLE ONE
Are all accounts receivable being collected within terms? YES NO
Are all posted-petition liabilities, including taxes,
being paid within terms? YES NO
Have any pre-petition liabilities been paid? YES NO
If so, describe. PURSUANT TO COURT ORDER AUTHORIZING
PAYMENTS OF PRE-PETITION WAGES, SALARIES, COMMISSIONS AND
COMPENSATION SIGNED JANUARY 11, 2001.
Are all funds received being deposited into DIP bank accounts? YES NO
Were any assets disposed of outside the normal course of business? YES NO
If so, describe. PROPERTY, PLANT & EQUIPMENT AND OTHER ASSET
SALES MADE PURSUANT TO VARIOUS COURT ORDERS AUTHORIZING SUCH
ASSET SALES.
Are all U.S. Trustee Quarterly Fee Payments current? YES NO
What is the status of your Plan of Reorganization? PLAN OF REORGANIZATION
CONFIRMED BY COURT ON AUGUST 14, 2001. EFFECTIVE DATE OF REORGANIZATION -
OCTOBER 3, 2001.
</Table>
I certify under penalty of perjury that the
following complete Monthly Operating Report
(MOR), consisting of MOR-1 through MOR-9 plus
attachments, is true and correct.
SIGNED /s/ CRAIG A. REYNOLDS
----------------------------------------
TITLE Vice President of Finance
----------------------------------------
MOR-1
CASE NAME: AMERICAN HOMESTAR WEST, INC. CASE NUMBER: 01-80022-G3-11
COMPARATIVE BALANCE SHEETS
<Table>
<Caption>
MONTH MONTH MONTH MONTH MONTH
ASSETS FILING DATE* JANUARY FEBRUARY MARCH APRIL MAY
------ ------------ ------------ ------------ ------------ ------------ ------------
CURRENT ASSETS
Cash 779,400 309,733 908,669 1,923,079 2,442,185 2,459,311
Accounts Receivable, Net 2,163,872 2,991,218 861,181 2,266,680 1,772,292 --
Inventory: Lower of Cost or Market 2,891,671 3,016,806 2,582,346 -- -- --
Prepaid Expenses 174,980 177,746 -- -- -- --
Investments -- -- -- -- -- --
Other -- -- -- -- -- --
------------ ------------ ------------ ------------ ------------ ------------
TOTAL CURRENT ASSETS 6,009,922 6,495,502 4,352,196 4,189,760 4,214,476 2,459,311
============ ============ ============ ============ ============ ============
PROPERTY, PLANT&EQUIP, @ COST 11,644,239 11,644,239 11,644,239 6,871,851 6,871,851 6,871,851
Less Accumulated Depreciation 3,534,181 3,596,765 3,654,474 1,129,906 1,129,906 1,129,906
Less Reserve for Impairment 2,730,785 2,730,785 6,272,110 4,024,290 4,024,290 4,024,290
------------ ------------ ------------ ------------ ------------ ------------
Net Book Value of PP & E 8,110,058 8,047,474 1,717,654 1,717,654 1,717,654 1,717,654
============ ============ ============ ============ ============ ============
OTHER ASSETS:
1. Tax Deposits -- -- -- -- -- --
2. Investments in Subs -- -- -- -- -- --
3. Deposits -- -- -- -- -- --
4. Interests in Insurance Policies -- -- -- -- -- --
5. Note Receivable -- -- -- -- -- --
6. Other Assets 2,416,350 2,416,350 2,416,350 2,416,350 2,416,350 --
------------ ------------ ------------ ------------ ------------ ------------
TOTAL ASSETS 16,536,330 16,959,326 8,486,200 8,323,764 8,348,481 4,176,965
============ ============ ============ ============ ============ ============
<Caption>
MONTH MONTH MONTH MONTH
ASSETS JUNE JULY AUGUST SEPTEMBER
------ ------------ ------------ ------------ ------------
CURRENT ASSETS
Cash 2,578,689 2,401,919 2,375,780 2,522,421
Accounts Receivable, Net -- -- -- --
Inventory: Lower of Cost or Market -- -- (10,325) (10,325)
Prepaid Expenses -- 28,056 28,056 28,056
Investments -- -- -- --
Other -- -- -- --
------------ ------------ ------------ ------------
TOTAL CURRENT ASSETS 2,578,689 2,429,975 2,393,511 2,540,152
============ ============ ============ ============
PROPERTY, PLANT&EQUIP, @ COST 6,871,851 6,871,851 6,871,851 6,871,851
Less Accumulated Depreciation 1,129,906 1,129,906 1,129,906 1,129,906
Less Reserve for Impairment 4,024,290 4,024,290 4,024,290 4,024,290
------------ ------------ ------------ ------------
Net Book Value of PP & E 1,717,654 1,717,654 1,717,654 1,717,654
============ ============ ============ ============
OTHER ASSETS:
1. Tax Deposits -- -- -- --
2. Investments in Subs -- -- -- --
3. Deposits -- -- -- --
4. Interests in Insurance Policies -- -- -- --
5. Note Receivable -- -- -- --
6. Other Assets -- -- -- --
------------ ------------ ------------ ------------
TOTAL ASSETS 4,296,343 4,147,629 4,111,165 4,257,807
============ ============ ============ ============
</Table>
* Per Schedules and Statement of Affairs
MOR-2
CASE NAME: AMERICAN HOMESTAR WEST, INC. CASE NUMBER: 01-80022-G3-11
COMPARATIVE BALANCE SHEETS
<Table>
<Caption>
LIABILITIES & OWNER'S MONTH MONTH MONTH MONTH MONTH
EQUITY FILING DATE* JANUARY FEBRUARY MARCH APRIL MAY
- --------------------- ------------ ------------ ------------ ------------ ------------ ------------
LIABILITIES:
POST-PETITION LIABILITIES (MOR-4) 1,189,024 2,607,137 979,955 949,617 852,014
------------ ------------ ------------ ------------ ------------
PRE-PETITION LIABILITIES:
Notes Payable - Secured 24,000 24,000 24,000 -- -- --
Priority Debt 162,684 143,634 141,236 239,923 239,923 239,923
Federal Income Tax 579,000 579,000 579,000 579,000 579,000 --
FICA/Withholding -- -- -- -- -- --
Unsecured Debt 8,535,783 8,541,783 7,346,202 6,839,198 6,732,308 3,002,672
Intercompany 7,811,473 7,934,720 7,718,858 7,678,128 7,655,340 7,655,340
Other -- -- -- -- -- --
------------ ------------ ------------ ------------ ------------ ------------
TOTAL PRE-PETITION LIABILITIES 17,112,940 17,223,137 15,809,295 15,336,248 15,206,570 10,897,934
------------ ------------ ------------ ------------ ------------ ------------
TOTAL LIABILITIES 17,112,940 18,412,161 18,416,432 16,316,203 16,156,187 11,749,948
============ ============ ============ ============ ============ ============
OWNER'S EQUITY (DEFICIT):
Preferred Stock -- -- -- -- -- --
Common Stock -- -- -- -- -- --
ADDITIONAL PAID-IN CAPITAL -- -- -- -- -- --
RETAINED EARNINGS: Filing Date (3,307,395) (3,307,395) (3,307,395) (3,307,395) (3,307,395) (3,307,395)
RETAINED EARNINGS: Post Filing Date -- (876,225) (6,622,837) (4,685,044) (4,500,312) (4,265,588)
------------ ------------ ------------ ------------ ------------ ------------
TOTAL OWNER'S EQUITY (NET WORTH) (3,307,395) (4,183,620) (9,930,232) (7,992,439) (7,807,707) (7,572,983)
------------ ------------ ------------ ------------ ------------ ------------
TOTAL LIABILITIES &
OWNER'S EQUITY 13,805,545 14,228,541 8,486,200 8,323,764 8,348,481 4,176,965
============ ============ ============ ============ ============ ============
<Caption>
LIABILITIES & OWNER'S MONTH MONTH MONTH MONTH
EQUITY JUNE JULY AUGUST SEPTEMBER
- --------------------- ------------ ------------ ------------ ------------
LIABILITIES:
POST-PETITION LIABILITIES (MOR-4) 811,473 382,331 (51,566) 23,131
------------ ------------ ------------ ------------
PRE-PETITION LIABILITIES:
Notes Payable - Secured -- -- -- --
Priority Debt 239,923 239,923 239,922 239,922
Federal Income Tax -- -- -- --
FICA/Withholding -- -- -- --
Unsecured Debt 3,002,025 3,002,025 3,036,263 2,999,649
Intercompany 7,655,340 7,655,340 7,655,340 7,655,340
Other -- -- -- --
------------ ------------ ------------ ------------
TOTAL PRE-PETITION LIABILITIES 10,897,288 10,897,288 10,931,525 10,894,911
------------ ------------ ------------ ------------
TOTAL LIABILITIES 11,708,760 11,279,619 10,879,959 10,918,042
============ ============ ============ ============
OWNER'S EQUITY (DEFICIT):
Preferred Stock -- -- -- --
Common Stock -- -- -- --
ADDITIONAL PAID-IN CAPITAL -- -- -- --
RETAINED EARNINGS: Filing Date (3,307,395) (3,307,395) (3,307,395) (3,307,395)
RETAINED EARNINGS: Post Filing Date (4,105,022) (3,824,595) (3,824,595) (3,824,595)
------------ ------------ ------------ ------------
TOTAL OWNER'S EQUITY (NET WORTH) (7,412,417) (7,131,990) (6,768,794) (6,660,236)
------------ ------------ ------------ ------------
TOTAL LIABILITIES &
OWNER'S EQUITY 4,296,343 4,147,629 4,111,165 4,257,806
============ ============ ============ ============
</Table>
* Per Schedules and Statement of Affairs
MOR-3
CASE NAME: AMERICAN HOMESTAR WEST, INC. CASE NUMBER: 01-80022-G3-11
SCHEDULE OF POST-PETITION LIABILITIES
<Table>
<Caption>
MONTH MONTH MONTH MONTH MONTH
JANUARY FEBRUARY MARCH APRIL MAY
---------- ---------- ---------- ---------- ----------
TRADE ACCOUNTS PAYABLE 388,080 796,709 448,148 447,414 361,394
---------- ---------- ---------- ---------- ----------
TAX PAYABLE
Federal Payroll Taxes 50,644 119,826 93 93 --
State Payroll & Sales 11,297 7,849 -- -- --
Ad Valorem Taxes 4,670 9,970 6,570 6,570 6,570
Other Taxes -- -- -- -- --
---------- ---------- ---------- ---------- ----------
TOTAL TAXES PAYABLE 66,611 137,645 6,663 6,663 6,570
========== ========== ========== ========== ==========
SECURED DEBT POST-PETITION -- -- -- -- --
ACCRUED INTEREST PAYABLE -- -- -- -- --
* ACCRUED PROFESSIONAL FEES -- -- -- -- --
OTHER ACCRUED LIABILITIES: -- -- -- -- --
1. Holiday Pay 5,090 -- -- -- --
2. Vacation Pay 7,552 4,836 -- -- --
3. Management 40,608 86,311 -- -- --
4. Manufacturing 42,377 42,983 -- -- --
5. Sales Commissions 1,619 9,205 -- -- --
6. Salaries 180,465 328,373 -- -- --
7. Sales Inc 59,166 82,813 47,366 47,366 35,000
8. Intercompany 397,455 1,118,261 477,778 448,174 449,050
---------- ---------- ---------- ---------- ----------
TOTAL POST-PETITION LIABILITIES (MOR-3) 1,189,024 2,607,137 979,955 949,617 852,014
========== ========== ========== ========== ==========
</Table>
<Table>
<Caption>
MONTH MONTH MONTH MONTH
JUNE JULY AUGUST SEPTEMBER
---------- ---------- ---------- ----------
TRADE ACCOUNTS PAYABLE 364,208 366,258 (24,695) 12,371
---------- ---------- ---------- ----------
TAX PAYABLE
Federal Payroll Taxes -- -- -- --
State Payroll & Sales -- -- -- --
Ad Valorem Taxes 6,570 6,570 6,570 6,570
Other Taxes -- -- -- --
---------- ---------- ---------- ----------
TOTAL TAXES PAYABLE 6,570 6,570 6,570 6,570
========== ========== ========== ==========
SECURED DEBT POST-PETITION -- -- -- --
ACCRUED INTEREST PAYABLE -- -- -- --
* ACCRUED PROFESSIONAL FEES -- -- -- --
OTHER ACCRUED LIABILITIES: --
1. Holiday Pay -- -- -- --
2. Vacation Pay -- -- -- --
3. Management -- -- -- --
4. Manufacturing -- -- -- --
5. Sales Commissions -- -- -- --
6. Salaries -- -- -- --
7. Sales Inc -- -- -- --
8. Intercompany 440,694 9,503 (33,440) 4,190
---------- ---------- ---------- ----------
TOTAL POST-PETITION LIABILITIES (MOR-3) 811,473 382,331 (51,566) 23,131
========== ========== ========== ==========
</Table>
* Payment Requires Court Approval.
MOR-4
CASE NAME: AMERICAN HOMESTAR WEST, INC. CASE NUMBER: 01-80022-G3-11
AGING OF POST-PETITION LIABILITIES
MONTH OF SEPTEMBER 2001
<Table>
<Caption>
AD-VALOREM,
DAYS TOTAL TRADE ACCTS FED TAXES STATE TAXES OTHER TAXES OTHER
---- ------ ----------- --------- ----------- ----------- -----
0-30 23,131 12,371 -- -- 6,570 4,190
31-60 --
61-90 --
91 + --
TOTAL 23,131 12,371 -- -- 6,570 4,190
</Table>
AGING OF ACCOUNTS RECEIVABLE
<Table>
<Caption>
MONTH JANUARY FEBRUARY MARCH APRIL MAY
----- --------- -------- --------- --------- ---
0-30 DAYS 908,028 350,396 652,326 -- --
31-60 DAYS 756,696 125,632 105,119 326,163 --
61-90 DAYS 1,194,807 58,625 25,126 63,071 --
91 + DAYS 131,686 326,528 1,484,109 1,383,057 --
TOTAL 2,991,218 861,181 2,266,680 1,772,292 --
<Caption>
MONTH JUNE JULY AUGUST SEPTEMBER
----- ---- ---- ------ ---------
0-30 DAYS -- -- -- --
31-60 DAYS -- -- -- --
61-90 DAYS -- -- -- --
91 + DAYS -- -- -- --
TOTAL -- -- -- --
</Table>
MOR-5
CASE NAME: AMERICAN HOMESTAR WEST, INC. CASE NUMBER: 01-80022-G3-11
STATEMENT OF INCOME (LOSS)
<Table>
<Caption>
MONTH JANUARY FEBRUARY MARCH APRIL MAY
----- ------------ ------------ ------------ ------------ ------------
REVENUES (MOR-1) 791,859 1,683,198 878,992 -- --
TOTAL COST OF REVENUES 1,220,996 1,669,125 696,083 11,862 (4,131)
GROSS PROFIT (429,137) 14,073 182,909 (11,862) 4,131
OPERATING EXPENSES:
Selling & Marketing 95,137 107,396 53,419 1,160 3,647
General & Administrative 289,365 237,333 91,656 44,314 1,105
Insiders Compensation -- -- -- -- --
Professional Fees -- -- 8,824 8,000 2,000
Impairment of Assets -- 6,234,472 2,596,290 (250,568) (236,845)
Other (attach list) -- -- (5,438,719) -- --
------------ ------------ ------------ ------------ ------------
TOTAL OPERATING EXPENSES 384,502 6,579,200 (2,688,530) (197,094) (230,093)
============ ============ ============ ============ ============
INCOME BEFORE INT, DEPR/TAX (MOR-1) (813,640) (6,565,128) 2,871,438 185,233 234,224
============ ============ ============ ============ ============
INTEREST EXPENSE -- -- -- -- --
DEPRECIATION 62,585 57,709 57,420 -- --
OTHER (INCOME) EXPENSE * -- -- -- --
OTHER ITEMS ** -- -- -- --
------------ ------------ ------------ ------------ ------------
TOTAL INT, DEPR & OTHER ITEMS 62,585 57,709 57,420 -- --
------------ ------------ ------------ ------------ ------------
NET INCOME BEFORE TAXES (876,225) (6,622,837) 2,814,018 185,233 234,224
============ ============ ============ ============ ============
FEDERAL INCOME TAXES -- -- --
------------ ------------ ------------ ------------ ------------
NET INCOME (LOSS) (MOR-1) (876,225) (6,622,837) 2,814,018 185,233 234,224
============ ============ ============ ============ ============
<Caption>
MONTH JUNE JULY AUGUST SEPTEMBER FILING TO DATE
----- ------------ ------------ ------------ ------------ --------------
REVENUES (MOR-1) 600 -- -- -- 2,562,789
TOTAL COST OF REVENUES 12,251 (180,780) (11,172) (25,183) 2,193,238
GROSS PROFIT (11,651) 180,780 11,172 25,183 369,551
OPERATING EXPENSES:
Selling & Marketing 2,225 2,842 -- -- 170,689
General & Administrative (2,325) 5,367 (1,569) 66 375,880
Insiders Compensation -- -- -- -- --
Professional Fees 4,033 742 -- -- 23,599
Impairment of Assets (176,149) (108,598) (362,950) (72,213) 7,695,651
Other (attach list) -- -- -- -- (5,438,719)
-- --
------------ ------------ ------------ ------------ ------------
TOTAL OPERATING EXPENSES (172,217) (99,647) (364,519) (72,147) 2,827,101
============ ============ ============ ============ ============
INCOME BEFORE INT, DEPR/TAX (MOR-1) 160,566 280,427 375,691 97,330 (2,457,550)
============ ============ ============ ============ ============
INTEREST EXPENSE -- -- -- (22,576) --
DEPRECIATION -- -- -- -- 115,130
OTHER (INCOME) EXPENSE * -- -- -- -- --
OTHER ITEMS ** -- -- -- -- --
------------ ------------ ------------ ------------ ------------
TOTAL INT, DEPR & OTHER ITEMS -- -- -- (22,576) 115,130
------------ ------------ ------------ ------------ ------------
NET INCOME BEFORE TAXES 160,566 280,427 375,691 119,906 (2,572,679)
============ ============ ============ ============ ============
FEDERAL INCOME TAXES --
------------ ------------ ------------ ------------ ------------
NET INCOME (LOSS) (MOR-1) 160,566 280,427 375,691 119,906 (2,572,679)
============ ============ ============ ============ ============
</Table>
Accrual Accounting Required, Otherwise Footnote With Explanation
* Footnote Mandatory
** Unusual and/or infrequent item(s) outside the ordinary course of business;
requires footnote
MOR-6
CASE NAME: AMERICAN HOMESTAR WEST, INC. CASE NUMBER: 01-80022-G3-11
<Table>
<Caption>
MONTH MONTH MONTH MONTH MONTH
CASH RECEIPTS AND DISBURSEMENTS JANUARY FEBRUARY MARCH APRIL MAY
- ------------------------------- ---------- ---------- ---------- ---------- ----------
1. CASH - BEGINNING OF MONTH 779,400 309,733 908,669 1,923,079 2,442,185
RECEIPTS:
2. CASH SALES 51,832 459,025 -- -- --
3. COLLECTION OF ACCOUNTS RECEIVABLE 176,948 1,040,193 1,385,606 655,069 65,517
4. LOANS & ADVANCES (attach list) -- -- -- --
5. SALE OF ASSETS -- 1,555,000 -- --
6. INTERCOMPANY -- -- --
7. OTHER (attach list) -- 111,251 -- -- --
---------- ---------- ---------- ---------- ----------
TOTAL RECEIPTS 228,781 1,610,469 2,940,606 655,069 65,517
========== ========== ========== ========== ==========
(Withdrawal) Contribution by Individual Debtor MFR-2*
DISBURSEMENTS:
7. NET PAYROLL 70,963 46,109 37 25,381 --
8. PAYROLL TAXES PAID -- 23,759 --
9. SALES, USE & OTHER TAXES PAID 18,214 -- 25,494 --
10. SECURED / RENTAL / LEASES 9,972 8,147 --
11. UTILITIES 246 26,417 75,452 7,715 2,949
12. INSURANCE 2,276 120,924 116,396 516 5,000
13. INVENTORY PURCHASES 225,044 747,744 328,616 51 9,187
14. VEHICLE EXPENSES 696 518 622 --
15. TRAVEL ENTERTAINMENT 4,620 1,227 3,745 -- --
16. REPAIRS, MAINTENANCE & SUPPLIES 154 12,527 9,364 1,732 1,843
17. ADMINISTRATIVE & SELLING 12,598 4,163 12,977 1,815 396
18. INTERCOMPANY 382,546 -- 1,334,525 64,637 9,934
19. DELIVERY 23,540 12,661 --
20. OTHER (ATTACH LIST) -- -- -- --
---------- ---------- ---------- ---------- ----------
TOTAL DISBURSEMENTS FROM OPERATIONS 698,447 1,011,533 1,926,196 127,963 29,309
========== ========== ========== ========== ==========
21. PROFESSIONAL FEES -- -- -- 18,832
22. U.S. TRUSTEE FEES -- 8,000 250
23. OTHER REORGANIZATION EXPENSES (ATTACH LIST) -- -- --
---------- ---------- ---------- ---------- ----------
TOTAL DISBURSEMENTS 698,447 1,011,533 1,926,196 135,963 48,391
========== ========== ========== ========== ==========
24. NET CASH FLOW (469,667) 598,936 1,014,409 519,106 17,126
---------- ---------- ---------- ---------- ----------
25. CASH - END OF MONTH (MOR-2) 309,733 908,669 1,923,079 2,442,185 2,459,311
========== ========== ========== ========== ==========
<Caption>
MONTH MONTH MONTH MONTH FILING TO
CASH RECEIPTS AND DISBURSEMENTS JUNE JULY AUGUST SEPTEMBER DATE
- ------------------------------- ---------- ---------- ---------- ---------- ----------
1. CASH - BEGINNING OF MONTH 2,459,311 2,578,689 2,401,919 2,375,780 779,400
RECEIPTS:
2. CASH SALES -- -- -- -- 510,857
3. COLLECTION OF ACCOUNTS RECEIVABLE 190,297 396,910 183,098 25,183 4,118,821
4. LOANS & ADVANCES (attach list) -- -- -- -- --
5. SALE OF ASSETS -- -- -- -- 1,555,000
6. INTERCOMPANY -- -- -- 130,744 130,744
7. OTHER (attach list) -- -- -- -- 111,251
---------- ---------- ---------- ---------- ----------
TOTAL RECEIPTS 190,297 396,910 183,098 155,927 6,426,673
========== ========== ========== ========== ==========
(Withdrawal) Contribution by Individual Debtor MFR-2*
DISBURSEMENTS:
7. NET PAYROLL -- -- -- -- 142,491
8. PAYROLL TAXES PAID -- -- -- -- 23,759
9. SALES, USE & OTHER TAXES PAID 128 43,836
10. SECURED / RENTAL / LEASES -- 52 -- 157 18,328
11. UTILITIES 348 117 326 135 113,704
12. INSURANCE 19,419 -- -- -- 264,531
13. INVENTORY PURCHASES 8,624 4,746 7,476 3,883 1,335,371
14. VEHICLE EXPENSES -- 191 159 6 2,192
15. TRAVEL ENTERTAINMENT -- -- -- 416 10,008
16. REPAIRS, MAINTENANCE & SUPPLIES 4,596 3,420 875 34,511
17. ADMINISTRATIVE & SELLING 5,326 1,120 -- -- 38,396
18. INTERCOMPANY 20,315 563,024 195,791 2,570,772
19. DELIVERY 167 36,368
20. OTHER (ATTACH LIST) -- -- -- --
---------- ---------- ---------- ---------- ----------
TOTAL DISBURSEMENTS FROM OPERATIONS 58,924 569,250 207,172 5,472 4,634,266
========== ========== ========== ========== ==========
21. PROFESSIONAL FEES 3,226 2,065 105 24,229
22. U.S. TRUSTEE FEES 8,250
23. OTHER REORGANIZATION EXPENSES (ATTACH LIST) 8,768 4,430 -- 3,710 16,908
---------- ---------- ---------- ---------- ----------
TOTAL DISBURSEMENTS 70,918 573,680 209,237 9,286 4,683,652
========== ========== ========== ========== ==========
24. NET CASH FLOW 119,378 (176,770) (26,139) 146,641 1,743,021
---------- ---------- ---------- ---------- ----------
25. CASH - END OF MONTH (MOR-2) 2,578,689 2,401,919 2,375,780 2,522,421 2,522,421
========== ========== ========== ========== ==========
</Table>
* applies to Individual debtor's only.
MOR-7
CASE NAME: AMERICAN HOMESTAR WEST, INC. CASE NUMBER: 01-80022-G3-11
CASH ACCOUNT RECONCILIATION
MONTH OF SEPTEMBER 2001
<Table>
<Caption>
BANK NAME Bank of America Bank of America First Security Bank Petty Cash
- --------- --------------- --------------- ------------------- ------------
ACCOUNT NUMBER # 3755500289 # 30031470 # 30161079
ACCOUNT TYPE OPERATING INVESTMENT PAYROLL OTHER FUNDS
------------ ------------ ------------ ------------
BANK BALANCE 2,554,911 (25,316) (7,174) --
DEPOSIT IN TRANSIT -- --
OUTSTANDING CHECKS -- -- -- --
------------ ------------ ------------ ------------
ADJUSTED BANK BALANCE 2,554,911 (25,316) (7,174) --
============ ============ ============ ============
BEGINNING CASH - PER BOOKS 196,846 (16,316) 2,195,250 --
RECEIPTS 25,183 -- -- --
TRANSFERS BETWEEN ACCOUNTS 2,342,168 (9,000) (2,202,424) --
(WITHDRAWAL) CONTRIBUTION - BY INDIVIDUAL DEBTOR MFR-2 -- -- -- --
CHECKS / OTHER DISBURSEMENTS (9,286) -- -- --
------------ ------------ ------------ ------------
ENDING CASH - PER BOOKS 2,554,911 (25,316) (7,174) --
============ ============ ============ ============
</Table>
<Table>
<Caption>
BANK NAME
- ---------
ACCOUNT NUMBER
GRAND
ACCOUNT TYPE TOTAL
------------
BANK BALANCE 2,522,421
DEPOSIT IN TRANSIT --
OUTSTANDING CHECKS --
------------
ADJUSTED BANK BALANCE 2,522,421
============
BEGINNING CASH - PER BOOKS 2,375,780
RECEIPTS 25,183
TRANSFERS BETWEEN ACCOUNTS 130,744
(WITHDRAWAL) CONTRIBUTION - BY INDIVIDUAL DEBTOR MFR-2 --
CHECKS / OTHER DISBURSEMENTS (9,286)
------------
ENDING CASH - PER BOOKS 2,522,421
============
</Table>
MOR-8
CASE NAME: AMERICAN HOMESTAR WEST, INC. CASE NUMBER: 01-80022-G3-11
PAYMENTS TO INSIDERS AND PROFESSIONALS
OF THE TOTAL DISBURSEMENTS SHOWN FOR THE MONTH, LIST THE AMOUNT PAID TO INSIDERS
(AS DEFINED IN SECTION 101(30)(A)-(F) OF THE U.S. BANKRUPTCY CODE) AND THE
PROFESSIONALS. ALSO, FOR INSIDERS IDENTIFY THE TYPE OF COMPENSATION PAID (e.g.,
SALARY, COMMISSION, BONUS, ETC.) (ATTACH ADDITIONAL PAGES AS NECESSARY).
<Table>
<Caption>
MONTH MONTH MONTH MONTH MONTH
INSIDERS: NAME/POSITION/COMP TYPE JANUARY FEBRUARY MARCH APRIL MAY
- --------------------------------- ------- -------- ----- ----- -----
1. Ronald McCaslin/President, Director -- -- -- -- --
2. Jackie Holland/Vice President -- -- -- -- --
3. Craig A. Reynolds/Secretary, Director -- -- -- -- --
4. Kristi E. Gross/Assistant Secretary -- -- -- -- --
5. -- -- -- -- --
6. -- -- -- -- --
------- -------- ----- ----- -----
TOTAL INSIDERS (MOR-1) -- -- -- -- --
======= ======== ===== ===== =====
<Caption>
MONTH MONTH MONTH MONTH
INSIDERS: NAME/POSITION/COMP TYPE JUNE JULY AUGUST SEPTEMBER
- --------------------------------- ----- ----- ------ ---------
1. Ronald McCaslin/President, Director -- -- -- --
2. Jackie Holland/Vice President -- -- -- --
3. Craig A. Reynolds/Secretary, Director -- -- -- --
4. Kristi E. Gross/Assistant Secretary -- -- -- --
5. -- -- -- --
6. -- -- -- --
----- ----- ------ ---------
TOTAL INSIDERS (MOR-1) -- -- -- --
===== ===== ====== =========
</Table>
<Table>
<Caption>
MONTH MONTH MONTH MONTH MONTH
PROFESSIONALS/NAME/ORDER DATE JANUARY FEBRUARY MARCH APRIL MAY
- ----------------------------- ------- -------- ----- ----- ------
1. Floyd, Isgur, Rios & Warlich -- -- -- -- 15,104
2. Strategic Capital Corporation -- -- -- -- 3,728
3. -- -- -- -- 0
4. -- -- -- -- 0
5. -- -- -- -- 0
6. -- -- -- -- 0
------- -------- ----- ----- ------
TOTAL PROFESSIONALS (MOR-1) -- -- -- -- 18,832
======= ======== ===== ===== ======
<Caption>
MONTH MONTH MONTH MONTH
PROFESSIONALS/NAME/ORDER DATE JUNE JULY AUGUST SEPTEMBER
- ----------------------------- -------- -------- -------- ---------
1. Floyd, Isgur, Rios & Warlich 770.40 -- 917.20 2,856.00
2. Strategic Capital Corporation 2,456.00 2,380.00 1,148.00 854.00
3. -- -- -- --
4. -- -- -- --
5. -- -- -- --
6. -- -- -- --
-------- -------- -------- ---------
TOTAL PROFESSIONALS (MOR-1) 3,226.40 2,380.00 2,065.20 3,710.00
======== ======== ======== =========
</Table>
MOR-9
UNITED STATES BANKRUPTCY COURT
SOUTHERN DISTRICT OF TEXAS
HOUSTON DIVISION
<Table>
CASE NAME: ASSOCIATED RETAILERS GROUP, INC. PETITION DATE: JANUARY 11, 2001
CASE NUMBER: 01-80024-G3-11
MONTHLY OPERATING REPORT SUMMARY FOR MONTH SEPTEMBER YEAR 2001
--------- ----
MONTH JANUARY FEBRUARY MARCH APRIL MAY
----- ---------- ---------- ---------- ---------- ----------
REVENUES (MOR-6) 81,655 1,025 -- 300 315,496
INCOME BEFORE INT, DEPREC./TAX (MOR-6) (94,639) (7,215,333) (3,668) (93,941) (1,405,766)
NET INCOME (LOSS) (MOR-6) (95,953) (7,338,790) (145,412) (91,710) (1,404,029)
PAYMENTS TO INSIDERS (MOR-9) 2,769 6,999 9,424 6,503 6,301
PAYMENTS TO PROFESSIONALS (MOR-9) -- -- 1,764 4,839 7,428
TOTAL DISBURSEMENTS (MOR-8) 1,846 50,637 54,782 52,942 48,002
<Caption>
MONTH JUNE JULY AUGUST SEPTEMBER
----- ---------- ---------- ---------- ----------
REVENUES (MOR-6) -- -- -- --
INCOME BEFORE INT, DEPREC./TAX (MOR-6) (124,326) (72,664) (80,916) 71,011
NET INCOME (LOSS) (MOR-6) (123,349) (71,102) (79,969) 70,956
PAYMENTS TO INSIDERS (MOR-9) 10,073 -- -- --
PAYMENTS TO PROFESSIONALS (MOR-9) 5,703 2,141 1,278 812
TOTAL DISBURSEMENTS (MOR-8) 22,027 27,526 36,121 9,302
</Table>
*** The ORIGINAL of this document MUST BE FILED with the United States
Bankruptcy Court and a COPY MUST BE SENT to the United States Trustee ***
- --------------------------------------------------------------------------------
REQUIRED INSURANCE MAINTAINED
AS OF SIGNATURE DATE
<Table>
<Caption>
EXP.
DATE
----
CASUALTY YES (X) NO ( ) 06/30/02
LIABILITY YES (X) NO ( ) 06/30/02
VEHICLE YES (X) NO ( ) 06/30/02
WORKER'S YES (X) NO ( ) 05/31/02
OTHER - DIRECTOR/OFFICER YES (X) NO ( ) 01/23/02
</Table>
- --------------------------------------------------------------------------------
ATTORNEY NAME:
FIRM: Floyd, Isgur, Rios & Warlich, P. C.
Address: 700 Louisiana, Suite 4600
Address:
City, State, ZIP: Houston, TX 77002-2732
Telephone: 713-222-1470
Fax: 713-222-1475
- --------------------------------------------------------------------------------
<Table>
<Caption>
CIRCLE ONE
Are all accounts receivable being collected within terms? YES NO
Are all posted-petition liabilities, including taxes,
being paid within terms? YES NO
Have any pre-petition liabilities been paid? YES NO
If so, describe. PURSUANT TO COURT ORDER AUTHORIZING
PAYMENTS OF PRE-PETITION WAGES, SALARIES, COMMISSIONS AND
COMPENSATION SIGNED JANUARY 11, 2001.
Are all funds received being deposited into DIP bank accounts? YES NO
Were any assets disposed of outside the normal course of business? YES NO
If so, describe. PROPERTY, PLANT & EQUIPMENT AND OTHER ASSET
SALES MADE PURSUANT TO VARIOUS COURT ORDERS AUTHORIZING SUCH
ASSET SALES.
Are all U.S. Trustee Quarterly Fee Payments current? YES NO
What is the status of your Plan of Reorganization? PLAN OF REORGANIZATION
CONFIRMED BY COURT ON AUGUST 14, 2001. EFFECTIVE DATE OF REORGANIZATION -
OCTOBER 3, 2001.
</Table>
I certify under penalty of perjury that the
following complete Monthly Operating Report
(MOR), consisting of MOR-1 through MOR-9
plus attachments, is true and correct.
SIGNED /s/ CRAIG A. REYNOLDS
-------------------------------------
TITLE Vice President of Finance
-------------------------------------
MOR-1
CASE NAME: ASSOCIATED RETAILERS GROUP, L.P. CASE NUMBER: 01-80024-G3-11
COMPARATIVE BALANCE SHEETS
<Table>
<Caption>
MONTH MONTH MONTH MONTH MONTH
ASSETS FILING DATE* JANUARY FEBRUARY MARCH APRIL MAY
------ ------------ --------- --------- --------- --------- ---------
CURRENT ASSETS
Cash 4,460 41,645 2,174 119,381 7,147 16,740
Accounts Receivable, Net 209,026 136,454 99,678 62,633 (59,780) --
Inventory: Lower of Cost or Market -- -- -- -- -- --
Prepaid Expenses 24,438 24,438 24,438 24,438 24,438 --
Investments -- -- -- -- -- --
Other -- -- -- -- -- --
--------- --------- --------- --------- --------- ---------
TOTAL CURRENT ASSETS 237,924 202,537 126,290 206,453 (28,195) 16,740
========= ========= ========= ========= ========= =========
PROPERTY, PLANT & EQUIP, @ COST 9,249,932 9,249,932 9,249,932 9,176,432 8,662,538 8,052,395
Less Accumulated Depreciation 2,980,886 3,106,079 3,231,273 3,356,549 3,274,536 3,129,629
Less Reserve for Impairment 5,242,353 5,242,353 4,684,897 4,922,765
--------- --------- --------- --------- --------- ---------
Net Book Value of PP & E 6,269,046 6,143,853 776,306 577,530 703,106 --
========= ========= ========= ========= ========= =========
OTHER ASSETS:
1. Tax Deposits -- -- -- -- -- --
2. Investments in Subs -- -- -- -- -- --
3. Deposits 8,103 8,103 -- -- -- --
4. Interests in Insurance Policies -- -- -- -- -- --
5. Note Receivable 342,699 332,771 182,969 182,637 167,007 160,145
6. Deferred Tax Asset 789,050 789,050 789,050 789,050 789,050 --
7. Goodwill 1,709,404 1,702,605 -- -- -- --
8. Other Assets 154,350 151,800 -- -- -- --
9. Intercompany -- -- -- 1,117 113,034 89,393
--------- --------- --------- --------- --------- ---------
TOTAL ASSETS 9,510,577 9,330,719 1,874,615 1,756,788 1,744,001 266,278
========= ========= ========= ========= ========= =========
<Caption>
MONTH MONTH MONTH MONTH
ASSETS JUNE JULY AUGUST SEPTEMBER
------ --------- --------- --------- ---------
CURRENT ASSETS
Cash 49,785 153,470 141,133 129,815
Accounts Receivable, Net -- -- -- --
Inventory: Lower of Cost or Market -- -- -- --
Prepaid Expenses -- -- -- --
Investments -- -- -- --
Other -- -- -- --
--------- --------- --------- ---------
TOTAL CURRENT ASSETS 49,785 153,470 141,133 129,815
========= ========= ========= =========
PROPERTY, PLANT & EQUIP, @ COST 7,968,204 7,968,204 7,968,204 7,849,348
Less Accumulated Depreciation 3,208,746 3,315,669 4,752,561 3,476,544
Less Reserve for Impairment 4,759,458 4,652,535 4,545,623 4,372,805
--------- --------- --------- ---------
Net Book Value of PP & E -- -- (1,329,980) --
========= ========= ========== =========
OTHER ASSETS:
1. Tax Deposits -- -- -- --
2. Investments in Subs -- -- -- --
3. Deposits -- -- -- --
4. Interests in Insurance Policies -- -- -- --
5. Note Receivable 152,191 135,891 127,907 127,907
6. Deferred Tax Asset -- -- -- --
7. Goodwill -- -- -- --
8. Other Assets -- -- -- --
9. Intercompany 56,403 9,676 26,400 54,491
--------- --------- ---------- ---------
TOTAL ASSETS 258,378 299,037 (1,034,540) 312,212
========= ========= ========== =========
</Table>
* Per Schedules and Statement of Affairs
MOR-2
CASE NAME: ASSOCIATED RETAILERS GROUP, L.P. CASE NUMBER: 01-80024-G3-11
COMPARATIVE BALANCE SHEETS
<Table>
<Caption>
LIABILITIES & OWNER'S MONTH MONTH MONTH MONTH MONTH
EQUITY FILING DATE* JANUARY FEBRUARY MARCH APRIL MAY
- --------------------- ----------- ----------- ----------- ----------- ----------- -----------
LIABILITIES:
POST-PETITION LIABILITIES (MOR-4) 7,428 477,211 605,458 690,907 418,107
----------- ----------- ----------- ----------- -----------
PRE-PETITION LIABILITIES:
Notes Payable - Secured -- -- -- -- -- --
Priority Debt (32,945) 2,022 15,162 7,420 7,420 7,420
Federal Income Tax (198,942) (198,942) (198,942) (198,942) (198,942) --
FICA/Withholding -- -- -- -- -- --
Unsecured Debt 876,864 882,474 502,493 409,574 404,363 404,525
Intercompany 8,818,348 8,686,438 8,466,181 8,466,181 8,464,867 8,464,867
Other -- -- -- -- -- --
----------- ----------- ----------- ----------- ----------- -----------
TOTAL PRE-PETITION LIABILITIES 9,463,325 9,371,992 8,784,894 8,684,232 8,677,707 8,876,812
----------- ----------- ----------- ----------- ----------- -----------
TOTAL LIABILITIES 9,463,325 9,379,420 9,262,105 9,289,690 9,368,614 9,294,919
=========== =========== =========== =========== =========== ===========
OWNER'S EQUITY (DEFICIT):
Preferred Stock -- -- -- --
Common Stock 5,000 5,000 5,000 5,000 5,000 5,000
ADDITIONAL PAID-IN CAPITAL 95,000 95,000 95,000 95,000 95,000 95,000
RETAINED EARNINGS: Filing Date (52,748) (52,748) (52,748) (52,748) (52,748) (52,748)
RETAINED EARNINGS: Post Filing Date -- (95,953) (7,434,743) (7,580,155) (7,671,865) (9,075,894)
----------- ----------- ----------- ----------- ----------- -----------
TOTAL OWNER'S EQUITY (NET WORTH) 47,252 (48,701) (7,387,490) (7,532,903) (7,624,613) (9,028,641)
----------- ----------- ----------- ----------- ----------- -----------
TOTAL LIABILITIES &
OWNER'S EQUITY 9,510,577 9,330,719 1,874,615 1,756,788 1,744,001 266,278
=========== =========== =========== =========== =========== ===========
<Caption>
LIABILITIES & OWNER'S MONTH MONTH MONTH MONTH
EQUITY JUNE JULY AUGUST SEPTEMBER
- --------------------- ----------- ----------- ----------- -----------
LIABILITIES:
POST-PETITION LIABILITIES (MOR-4) 533,557 646,295 725,167 670,741
----------- ----------- ----------- -----------
PRE-PETITION LIABILITIES:
Notes Payable - Secured -- -- -- --
Priority Debt 21,469 21,469 21,469 21,469
Federal Income Tax -- -- -- --
FICA/Withholding -- -- -- --
Unsecured Debt 390,476 389,498 386,998 387,240
Intercompany 8,464,867 8,464,867 8,464,867 8,464,867
Other -- -- -- --
----------- ----------- ----------- -----------
TOTAL PRE-PETITION LIABILITIES 8,876,812 8,875,834 8,873,334 8,873,576
----------- ----------- ----------- -----------
TOTAL LIABILITIES 9,410,369 9,522,129 9,598,501 9,544,317
=========== =========== =========== ===========
OWNER'S EQUITY (DEFICIT):
Preferred Stock
Common Stock 5,000 5,000 5,000 5,000
ADDITIONAL PAID-IN CAPITAL 95,000 95,000 95,000 95,000
RETAINED EARNINGS: Filing Date (52,748) (52,748) (52,748) (52,748)
RETAINED EARNINGS: Post Filing Date (9,199,242) (9,270,344) (9,270,344) (9,270,344)
----------- ----------- ----------- -----------
TOTAL OWNER'S EQUITY (NET WORTH) (9,151,990) (9,223,092) (10,633,041) (9,232,104)
----------- ----------- ----------- -----------
TOTAL LIABILITIES &
OWNER'S EQUITY 258,378 299,037 (1,034,540) 312,212
=========== =========== =========== ===========
</Table>
* Per Schedules and Statement of Affairs
MOR-3
CASE NAME: ASSOCIATED RETAILERS GROUP, L.P. CASE NUMBER: 01-80024-G3-11
SCHEDULE OF POST-PETITION LIABILITIES
<Table>
<Caption>
MONTH MONTH MONTH MONTH MONTH
JANUARY FEBRUARY MARCH APRIL MAY
---------- ---------- ---------- ---------- ----------
TRADE ACCOUNTS PAYABLE 400 460,875 603,182 691,836 418,757
---------- ---------- ---------- ---------- ----------
TAX PAYABLE
Federal Payroll Taxes 1,225 1,986 2,276 949 1,348
State Payroll & Sales -- -- -- -- --
Ad Valorem Taxes 567 -- -- -- --
Other Taxes -- -- -- -- --
---------- ---------- ---------- ---------- ----------
TOTAL TAXES PAYABLE 1,792 1,986 2,276 949 1,348
========== ========== ========== ========== ==========
SECURED DEBT POST-PETITION -- -- -- -- --
ACCRUED INTEREST PAYABLE -- -- -- -- --
* ACCRUED PROFESSIONAL FEES -- -- -- -- --
OTHER ACCRUED LIABILITIES:
1. Intercompany 5,236 14,350 -- --
2. Salaries -- -- -- (1,878) (1,998)
3. -- -- -- -- --
---------- ---------- ---------- ---------- ----------
TOTAL POST-PETITION LIABILITIES (MOR-3) 7,428 477,211 605,458 690,907 418,107
========== ========== ========== ========== ==========
<Caption>
MONTH MONTH MONTH MONTH
JUNE JULY AUGUST SEPTEMBER
---------- ---------- ---------- ----------
TRADE ACCOUNTS PAYABLE 532,209 644,653 723,822 669,706
---------- ---------- ---------- ----------
TAX PAYABLE
Federal Payroll Taxes 1,348 1,642 1,958 1,648
State Payroll & Sales -- -- -- --
Ad Valorem Taxes -- -- -- --
Other Taxes -- -- -- --
---------- ---------- ---------- ----------
TOTAL TAXES PAYABLE 1,348 1,642 1,958 1,648
========== ========== ========== ==========
SECURED DEBT POST-PETITION -- -- -- --
ACCRUED INTEREST PAYABLE -- -- -- --
* ACCRUED PROFESSIONAL FEES -- -- -- --
OTHER ACCRUED LIABILITIES:
1. Intercompany -- -- -- --
2. Salaries -- -- (613) (613)
3 -- -- -- --
---------- ---------- ---------- ----------
TOTAL POST-PETITION LIABILITIES (MOR-3) 533,557 646,295 725,167 670,741
========== ========== ========== ==========
</Table>
* Payment Requires Court Approval.
MOR-4
CASE NAME: ASSOCIATED RETAILERS GROUP, L.P. CASE NUMBER: 01-80024-G3-11
AGING OF POST-PETITION LIABILITIES
MONTH OF SEPTEMBER 2001
<Table>
<Caption>
AD-VALOREM,
DAYS TOTAL TRADE ACCTS FED TAXES STATE TAXES OTHER TAXES OTHER
- ----------- ----------- ----------- ----------- ----------- ----------- -----------
0-30 670,741 669,706 1,648 -- -- (613)
31-60 -- -- -- -- -- --
61-90 -- -- -- -- -- --
91 + -- -- -- -- -- --
TOTAL 670,741 669,706 1,648 -- -- (613)
</Table>
AGING OF ACCOUNTS RECEIVABLE
<Table>
<Caption>
MONTH JANUARY FEBRUARY MARCH APRIL MAY
- ---------- ---------- ---------- ---------- ---------- ----------
0-30 DAYS 35,324 -- -- -- --
31-60 DAYS 338,799 -- -- -- --
61-90 DAYS 4,382 -- -- -- --
91 + DAYS (242,050) 99,678 62,633 (59,780) --
TOTAL 136,454 99,678 62,633 (59,780) --
<Caption>
MONTH JUNE JULY AUGUST SEPTEMBER
- ---------- ---------- ---------- ---------- ----------
0-30 DAYS -- -- -- --
31-60 DAYS -- -- -- --
61-90 DAYS -- -- -- --
91 + DAYS -- -- -- --
TOTAL -- -- -- --
</Table>
MOR-5
CASE NAME: ASSOCIATED RETAILERS GROUP, L.P. CASE NUMBER: 01-80024-G3-11
STATEMENT OF INCOME (LOSS)
<Table>
<Caption>
MONTH JANUARY FEBRUARY MARCH APRIL MAY
----- ---------- ---------- ---------- ---------- ----------
REVENUES (MOR-1) 81,655 1,025 0 300 315,496
TOTAL COST OF REVENUES (142,931) -- (127,977) -- --
GROSS PROFIT (61,276) 1,025 (127,977) 300 315,496
OPERATING EXPENSES:
Selling & Marketing 17,562 279,579 1,870 66,650 70,783
General & Administrative 13,032 -- 10,459 6,923 2,400
Insiders Compensation 2,769 6,999 9,424 6,503 6,301
Professional Fees -- -- 1,590 16,084 413
Impairment of Assets 6,929,780 (147,653) (1,919) 1,641,365
Other (attach list) -- -- -- -- --
---------- ---------- ---------- ---------- ----------
TOTAL OPERATING EXPENSES 33,363 7,216,358 (124,310) 94,241 1,721,262
========== ========== ========== ========== ==========
INCOME BEFORE INT, DEPR/TAX (MOR-1) (94,639) (7,215,333) (3,667) (93,941) (1,405,766)
========== ========== ========== ========== ==========
INTEREST EXPENSE 1,314 -- 16,468 -- --
DEPRECIATION -- 125,194 125,276 -- --
OTHER (INCOME) EXPENSE * -- (1,737) -- (2,231) (1,737)
OTHER ITEMS ** -- -- -- -- --
---------- ---------- ---------- ---------- ----------
TOTAL INT, DEPR & OTHER ITEMS 1,314 123,457 141,744 (2,231) (1,737)
---------- ---------- ---------- ---------- ----------
NET INCOME BEFORE TAXES (95,953) (7,338,790) (145,411) (91,710) (1,404,029)
========== ========== ========== ========== ==========
FEDERAL INCOME TAXES -- -- -- -- --
---------- ---------- ---------- ---------- ----------
NET INCOME (LOSS) (MOR-1) (95,953) (7,338,790) (145,411) (91,710) (1,404,029)
========== ========== ========== ========== ==========
<Caption>
MONTH JUNE JULY AUGUST SEPTEMBER FILING TO DATE
----- ---------- ---------- ---------- ---------- --------------
REVENUES (MOR-1) -- -- -- -- 316,821
TOTAL COST OF REVENUES -- -- -- -- (127,977)
GROSS PROFIT -- -- -- -- 188,844
OPERATING EXPENSES:
Selling & Marketing 116,304 70,955 80,916 (72,684) 687,057
General & Administrative 1,193 (389) -- -- 20,585
Insiders Compensation 10,265 39,493
Professional Fees 8,564 2,098 -- -- 28,749
Impairment of Assets (12,000) 1,673 8,411,246
Other (attach list) --
--
---------- ---------- ---------- ---------- ----------
TOTAL OPERATING EXPENSES 124,326 72,664 80,916 (71,011) 9,187,129
========== ========== ========== ========== ==========
INCOME BEFORE INT, DEPR/TAX (MOR-1) (124,326) (72,664) (80,916) 71,011 (8,998,285)
========== ========== ========== ========== ==========
INTEREST EXPENSE -- (1,562) (947) -- 13,959
DEPRECIATION -- -- -- -- 250,470
OTHER (INCOME) EXPENSE * (977) 55 (6,682)
OTHER ITEMS ** --
---------- ---------- ---------- ---------- ----------
TOTAL INT, DEPR & OTHER ITEMS (977) (1,562) (947) 55 257,747
---------- ---------- ---------- ---------- ----------
NET INCOME BEFORE TAXES (123,349) (71,102) (79,969) 70,956 (9,256,032)
========== ========== ========== ========== ==========
FEDERAL INCOME TAXES -- -- -- -- --
---------- ---------- ---------- ---------- ----------
NET INCOME (LOSS) (MOR-1) (123,349) (71,102) (79,969) 70,956 (9,256,032)
========== ========== ========== ========== ==========
</Table>
Accrual Accounting Required, Otherwise Footnote With Explanation
* Footnote Mandatory
** Unusual and/or infrequent item(s) outside the ordinary course of business;
requires footnote
MOR-6
CASE NAME: ASSOCIATED RETAILERS GROUP, L.P. CASE NUMBER: 01-80024-G3-11
<Table>
<Caption>
MONTH MONTH MONTH MONTH MONTH
CASH RECEIPTS AND DISBURSEMENTS JANUARY FEBRUARY MARCH APRIL MAY
- ------------------------------- ---------- ---------- ---------- ---------- ----------
1. CASH - BEGINNING OF MONTH 4,460 41,645 2,174 119,381 7,147
RECEIPTS:
2. CASH SALES -- -- -- --
3. COLLECTION OF ACCOUNTS RECEIVABLE -- 11,166 5,065 11,635 25,011
4. LOANS & ADVANCES (ATTACH LIST) -- -- -- --
5. SALE OF ASSETS -- 100,000 -- --
6. CUSTOMER DEPOSITS 39,031 -- -- --
7. INTERCOMPANY -- 66,924 -- 32,584
---------- ---------- ---------- ---------- ----------
TOTAL RECEIPTS 39,031 11,166 171,989 11,635 57,595
========== ========== ========== ========== ==========
(Withdrawal) Contribution by Individual Debtor MFR-2*
DISBURSEMENTS:
8. NET PAYROLL --
9. PAYROLL TAXES PAID -- 464
10. SALES, USE & OTHER TAXES PAID --
11. SECURED / RENTAL / LEASES -- 45,430 47,491 38,780 36,890
12. UTILITIES -- 152 1,402 633 799
13. INSURANCE 1,637 1,635 1,980 1,640 1,853
14. INVENTORY PURCHASES --
15. VEHICLE EXPENSES 129 1,204 807 612 670
16. TRAVEL ENTERTAINMENT -- 220 460
17. REPAIRS, MAINTENANCE & SUPPLIES -- 800 93 35
18. ADMINISTRATIVE & SELLING 80 1,995 538 4,672 77
19. INTERCOMPANY -- 70,927
---------- ---------- ---------- ---------- ----------
TOTAL DISBURSEMENTS FROM OPERATIONS 1,846 50,637 53,018 118,280 40,324
========== ========== ========== ========== ==========
20. PROFESSIONAL FEES -- 1,764 4,839 7,428
21. U.S. TRUSTEE FEES -- -- 750 250
22. OTHER REORGANIZATION EXPENSES (ATTACH LIST) -- --
---------- ---------- ---------- ---------- ----------
TOTAL DISBURSEMENTS 1,846 50,637 54,782 123,869 48,002
========== ========== ========== ========== ==========
23. NET CASH FLOW 37,185 (39,471) 117,207 (112,234) 9,593
---------- ---------- ---------- ---------- ----------
24. CASH - END OF MONTH (MOR-2) 41,645 2,174 119,381 7,147 16,740
========== ========== ========== ========== ==========
<Caption>
MONTH MONTH MONTH MONTH FILING TO
CASH RECEIPTS AND DISBURSEMENTS JUNE JULY AUGUST SEPTEMBER DATE
- ------------------------------- ---------- ---------- ---------- ---------- ----------
1. CASH - BEGINNING OF MONTH 16,740 49,786 153,471 141,131 4,460
RECEIPTS:
2. CASH SALES -- -- -- -- --
3. COLLECTION OF ACCOUNTS RECEIVABLE 34,960 84,484 20,003 26,075 218,400
4. LOANS & ADVANCES (ATTACH LIST) -- -- -- -- --
5. SALE OF ASSETS -- -- -- -- 100,000
6. CUSTOMER DEPOSITS -- -- -- -- 39,031
7. INTERCOMPANY 20,112 46,727 3,779 -- 170,126
---------- ---------- ---------- ---------- ----------
TOTAL RECEIPTS 55,072 131,211 23,782 26,075 527,556
========== ========== ========== ========== ==========
(Withdrawal) Contribution by Individual Debtor MFR-2* --
DISBURSEMENTS:
8. NET PAYROLL 2,272 -- 1,958 4,230
9. PAYROLL TAXES PAID 9 -- 927 1,400
10. SALES, USE & OTHER TAXES PAID -- 55 55
11. SECURED / RENTAL / LEASES 11,723 16,180 27,691 -- 224,185
12. UTILITIES 564 544 626 -- 4,720
13. INSURANCE 2,131 751 751 751 13,129
14. INVENTORY PURCHASES -- -- -- -- --
15. VEHICLE EXPENSES 70 158 -- -- 3,650
16. TRAVEL ENTERTAINMENT -- -- -- -- 681
17. REPAIRS, MAINTENANCE & SUPPLIES 35 2,035 5,775 3,207 11,980
18. ADMINISTRATIVE & SELLING 1,801 458 -- 365 9,984
19. INTERCOMPANY -- -- -- 28,089 99,016
---------- ---------- ---------- ---------- ----------
TOTAL DISBURSEMENTS FROM OPERATIONS 16,323 22,407 34,843 36,079 373,031
========== ========== ========== ========== ==========
20. PROFESSIONAL FEES 5,703 2,478 1,278 -- 23,490
21. U.S. TRUSTEE FEES 1,000
22. OTHER REORGANIZATION EXPENSES (ATTACH LIST) 2,641 -- 1,312 3,953
---------- ---------- ---------- ---------- ----------
TOTAL DISBURSEMENTS 22,026 27,526 36,121 37,391 401,474
========== ========== ========== ========== ==========
23. NET CASH FLOW 33,046 103,685 (12,339) (11,316) 125,355
---------- ---------- ---------- ---------- ----------
24. CASH - END OF MONTH (MOR-2) 49,786 153,471 141,131 129,815 129,815
========== ========== ========== ========== ==========
</Table>
* applies to Individual debtor's only.
MOR-7
CASE NAME: ASSOCIATED RETAILERS GROUP, L.P. CASE NUMBER: 01-80024-G3-11
CASH ACCOUNT RECONCILIATION
MONTH OF SEPTEMBER 2001
<Table>
<Caption>
BANK NAME Bank of America
- --------- ---------------
ACCOUNT NUMBER # 3755500205
ACCOUNT TYPE OPERATING TOTAL
----------- ---------
BANK BALANCE 129,815 129,815
DEPOSIT IN TRANSIT -- --
OUTSTANDING CHECKS -- --
----------- ---------
ADJUSTED BANK BALANCE 129,815 129,815
=========== =========
BEGINNING CASH - PER BOOKS 141,131 141,131
RECEIPTS 26,075 26,075
TRANSFERS BETWEEN ACCOUNTS (28,089) (28,089)
(WITHDRAWAL) CONTRIBUTION - BY INDIVIDUAL DEBTOR MFR-2 -- --
CHECKS / OTHER DISBURSEMENTS (9,302) (9,302)
----------- ---------
ENDING CASH - PER BOOKS 129,815 129,815
=========== =========
</Table>
MOR-8
CASE NAME: ASSOCIATED RETAILERS GROUP, L.P. CASE NUMBER: 01-80024-G3-11
PAYMENTS TO INSIDERS AND PROFESSIONALS
OF THE TOTAL DISBURSEMENTS SHOWN FOR THE MONTH, LIST THE AMOUNT PAID TO INSIDERS
(AS DEFINED IN SECTION 101(30)(A)-(F) OF THE U.S. BANKRUPTCY CODE) AND THE
PROFESSIONALS. ALSO, FOR INSIDERS IDENTIFY THE TYPE OF COMPENSATION PAID (e.g.,
SALARY, COMMISSION, BONUS, ETC.) (ATTACH ADDITIONAL PAGES AS NECESSARY).
<Table>
<Caption>
MONTH MONTH MONTH MONTH MONTH
INSIDERS: NAME/POSITION/COMP TYPE JANUARY FEBRUARY MARCH APRIL MAY
- --------------------------------- -------- -------- -------- -------- --------
1. Richard A. Carver/President Assoc Ret Hold/Salary 2,769 6,999 9,424 6,503 6,301
2. Jackie Holland/Vice President Assoc Retailers Holdings -- -- -- -- --
3. Craig A. Reynolds/VP, Secretary, Director Assoc Ret Hold -- -- -- -- --
4. Kristi E. Gross/Assistant Secretary Assoc Retailers Holdings -- -- -- -- --
5. Ronald McCaslin/Director Assoc Retailers Holdings -- -- -- -- --
6. Dennis L. Jones/President, Director HSTR Retail Holdings -- -- -- -- --
7. Ronald Krueger/VP, Treasurer, Director HSTR Retail Hold -- -- -- -- --
8. Robert Grier/Secretary, Director HSTR Retail Hold -- -- -- -- --
9. Beth L. Peoples/Asst Secretary, Asst Treasurer HSTR Ret Hold -- -- -- -- --
-------- -------- -------- -------- --------
TOTAL INSIDERS (MOR-1) 2,769 6,999 9,424 6,503 6,301
======== ======== ======== ======== ========
<Caption>
MONTH MONTH MONTH MONTH
INSIDERS: NAME/POSITION/COMP TYPE JUNE JULY AUGUST SEPTEMBER
- --------------------------------- ------- ------- ------- ---------
1. Richard A. Carver/President Assoc Ret Hold/Salary 10,073 -- -- --
2. Jackie Holland/Vice President Assoc Retailers Holdings -- -- -- --
3. Craig A. Reynolds/VP, Secretary, Director Assoc Ret Hold -- -- -- --
4. Kristi E. Gross/Assistant Secretary Assoc Retailers Holdings -- -- -- --
5. Ronald McCaslin/Director Assoc Retailers Holdings -- -- -- --
6. Dennis L. Jones/President, Director HSTR Retail Holdings -- -- -- --
7. Ronald Krueger/VP, Treasurer, Director HSTR Retail Hold -- -- -- --
8. Robert Grier/Secretary, Director HSTR Retail Hold -- -- -- --
9. Beth L. Peoples/Asst Secretary, Asst Treasurer HSTR Ret Hold -- -- -- --
------- ------- ------- --------
TOTAL INSIDERS (MOR-1) 10,073 -- -- --
======= ======= ======= ========
</Table>
<Table>
<Caption>
MONTH MONTH MONTH MONTH MONTH
PROFESSIONALS/NAME/ORDER DATE JANUARY FEBRUARY MARCH APRIL MAY
- ----------------------------- -------- -------- -------- -------- --------
1. Floyd, Isgur, Rios & Warlich -- -- 1,764 4,839 4,846
2. Strategic Capital Corporation -- -- -- -- 2,582
3. -- -- -- -- --
4. -- -- -- -- --
5. -- -- -- -- --
6. -- -- -- -- --
------- ------- ------- ------- -------
TOTAL PROFESSIONALS (MOR-1) -- -- 1,764 4,839 7,428
======= ======= ======= ======= =======
<Caption>
MONTH MONTH MONTH MONTH
PROFESSIONALS/NAME/ORDER DATE JUNE JULY AUGUST SEPTEMBER
- ----------------------------- -------- -------- -------- ---------
1. Floyd, Isgur, Rios & Warlich 4,313 -- 312 --
2. Strategic Capital Corporation 1,390 2,141 966 812
3. -- -- -- --
4. -- -- -- --
5. -- -- -- --
6. -- -- -- --
------- ------- ------- -------
TOTAL PROFESSIONALS (MOR-1) 5,703 2,141 1,278 812
======= ======= ======= =======
</Table>
MOR-9
UNITED STATES BANKRUPTCY COURT
SOUTHERN DISTRICT OF TEXAS
HOUSTON DIVISION
<Table>
CASE NAME: ASSOCIATED RETAILERS HOLDINGS, INC. PETITION DATE: JANUARY 11, 2001
CASE NUMBER: 01-80023-G3-11
MONTHLY OPERATING REPORT SUMMARY FOR MONTH SEPTEMBER YEAR 2001
--------- ----
MONTH JANUARY FEBRUARY MARCH APRIL MAY
----- ------- -------- ----- ----- ---
REVENUES (MOR-6) -- -- -- -- --
INCOME BEFORE INT, DEPREC./TAX (MOR-6) -- -- -- -- --
NET INCOME (LOSS) (MOR-6) -- -- -- -- --
PAYMENTS TO INSIDERS (MOR-9) -- -- -- -- --
PAYMENTS TO PROFESSIONALS (MOR-9) -- -- -- -- --
TOTAL DISBURSEMENTS (MOR-8) -- -- -- -- --
<Caption>
MONTH JUNE JULY AUGUST SEPTEMBER
----- ---- ---- ------ ---------
REVENUES (MOR-6) -- -- -- --
INCOME BEFORE INT, DEPREC./TAX (MOR-6) -- -- -- --
NET INCOME (LOSS) (MOR-6) -- -- -- --
PAYMENTS TO INSIDERS (MOR-9) -- -- -- --
PAYMENTS TO PROFESSIONALS (MOR-9) -- -- -- --
TOTAL DISBURSEMENTS (MOR-8) -- -- -- --
</Table>
*** The ORIGINAL of this document MUST BE FILED with the United States
Bankruptcy Court and a COPY MUST BE SENT to the United States Trustee ***
- --------------------------------------------------------------------------------
REQUIRED INSURANCE MAINTAINED
AS OF SIGNATURE DATE
<Table>
<Caption>
EXP.
DATE
----
CASUALTY YES (X) NO ( ) 06/30/02
LIABILITY YES (X) NO ( ) 06/30/02
VEHICLE YES (X) NO ( ) 06/30/02
WORKER'S YES (X) NO ( ) 03/27/02
OTHER - DIRECTOR/OFFICER YES (X) NO ( ) 01/23/02
</Table>
- --------------------------------------------------------------------------------
ATTORNEY NAME:
FIRM: Floyd, Isgur, Rios & Warlich, P. C.
Address: 700 Louisiana, Suite 4600
Address:
City, State, ZIP: Houston, TX 77002-2732
Telephone: 713-222-1470
Fax: 713-222-1475
- --------------------------------------------------------------------------------
<Table>
<Caption>
CIRCLE ONE
Are all accounts receivable being collected within terms? YES NO
Are all posted-petition liabilities, including taxes, being paid within terms? YES NO
Have any pre-petition liabilities been paid? YES NO
If so, describe.
-------------------------------------------------------------
Are all funds received being deposited into DIP bank accounts? YES NO
Were any assets disposed of outside the normal course of business? YES NO
If so, describe.
--------------------------------------------------------------
- -------------------------------------------------------------------------------.
Are all U.S. Trustee Quarterly Fee Payments current? YES NO
What is the status of your Plan of Reorganization? PLAN OF REORGANIZATION CONFIRMED
BY COURT ON AUGUST 14, 2001. EFFECTIVE DATE OF REORGANIZATION - OCTOBER 3, 2001.
</Table>
I certify under penalty of perjury that the
following complete Monthly Operating Report
(MOR), consisting of MOR-1 through MOR-9
plus attachments, is true and correct.
SIGNED /s/ CRAIG A. REYNOLDS
-------------------------------------
TITLE Vice President of Finance
-------------------------------------
MOR-1
CASE NAME: ASSOCIATED RETAILERS HOLDINGS, INC. CASE NUMBER: 01-80023-G3-11
COMPARATIVE BALANCE SHEETS
<Table>
<Caption>
ASSETS MONTH MONTH MONTH MONTH MONTH MONTH
------ FILING DATE* JANUARY FEBRUARY MARCH APRIL MAY MAY
------------ ------- -------- ------- ------- ------- -------
CURRENT ASSETS
Cash -- -- -- -- -- -- --
Accounts Receivable, Net -- -- -- -- -- -- --
Inventory: Lower of Cost or Market -- -- -- -- -- -- --
Prepaid Expenses -- -- -- -- -- -- --
Investments -- -- -- -- -- -- --
Other -- -- -- -- -- -- --
------- ------- ------- ------- ------- ------- -------
TOTAL CURRENT ASSETS -- -- -- -- -- -- --
======= ======= ======= ======= ======= ======= =======
PROPERTY, PLANT&EQUIP, @ COST -- -- -- -- -- -- --
Less Accumulated Depreciation -- -- -- -- -- -- --
------- ------- ------- ------- ------- ------- -------
Net Book Value of PP & E -- -- -- -- -- -- --
======= ======= ======= ======= ======= ======= =======
OTHER ASSETS: -- -- -- -- -- -- --
1. Tax Deposits -- -- -- -- -- -- --
2. Investments in Subs (14,549) (14,549) (14,549) (14,549) (14,549) (14,549) (14,549)
3. Deposits -- -- -- -- -- -- --
4. Interests in Insurance Policies -- -- -- -- -- -- --
5. Note Receivable -- -- -- -- -- -- --
6. Deferred Comp. Plan Assets -- -- -- -- -- -- --
------- ------- ------- ------- ------- ------- -------
TOTAL ASSETS (14,549) (14,549) (14,549) (14,549) (14,549) (14,549) (14,549)
======= ======= ======= ======= ======= ======= =======
<Caption>
ASSETS MONTH MONTH MONTH
------ JULY AUGUST SEPTEMBER
------- ------- ---------
CURRENT ASSETS
Cash -- -- --
Accounts Receivable, Net -- -- --
Inventory: Lower of Cost or Market -- -- --
Prepaid Expenses -- -- --
Investments -- -- --
Other -- -- --
------- ------- -------
TOTAL CURRENT ASSETS -- -- --
======= ======= =======
PROPERTY, PLANT&EQUIP, @ COST -- -- --
Less Accumulated Depreciation -- -- --
------- ------- -------
Net Book Value of PP & E -- -- --
======= ======= =======
OTHER ASSETS: -- -- --
1. Tax Deposits -- -- --
2. Investments in Subs (14,549) (14,549) (91,520)
3. Deposits -- -- --
4. Interests in Insurance Policies -- -- --
5. Note Receivable -- -- --
6. Deferred Comp. Plan Assets -- -- --
------- ------- -------
TOTAL ASSETS (14,549) (14,549) (91,520)
======= ======= =======
</Table>
* Per Schedules and Statement of Affairs
MOR-2
CASE NAME: ASSOCIATED RETAILERS HOLDINGS, INC. CASE NUMBER: 01-80023-G3-11
COMPARATIVE BALANCE SHEETS
<Table>
<Caption>
LIABILITIES & OWNER'S MONTH MONTH MONTH MONTH MONTH
EQUITY FILING DATE* JANUARY FEBRUARY MARCH APRIL MAY
- --------------------- ------------ -------- -------- -------- -------- --------
LIABILITIES:
POST-PETITION LIABILITIES (MOR-4) -- -- -- -- --
-------- -------- -------- -------- -------- --------
PRE-PETITION LIABILITIES:
NOTES PAYABLE - SECURED -- -- -- -- -- --
PRIORITY DEBT -- -- -- -- -- --
FEDERAL INCOME TAX -- -- -- -- -- --
FICA/WITHHOLDING -- -- -- -- -- --
UNSECURED DEBT -- -- -- -- -- --
INTERCOMPANY 20,348 20,348 20,348 20,348 20,348 20,348
OTHER -- -- -- -- -- --
-------- -------- -------- -------- -------- --------
TOTAL PRE-PETITION LIABILITIES 20,348 20,348 20,348 20,348 20,348 20,348
-------- -------- -------- -------- -------- --------
TOTAL LIABILITIES 20,348 20,348 20,348 20,348 20,348 20,348
======== ======== ======== ======== ======== ========
OWNER'S EQUITY (DEFICIT):
PREFERRED STOCK -- -- -- -- -- --
COMMON STOCK -- -- -- -- -- --
ADDITIONAL PAID-IN CAPITAL -- -- -- -- -- --
EQUITY IN CONS SUBS (675) (675) (675) (675) (675) (675)
RETAINED EARNINGS: FILING DATE (34,223) (34,223) (34,223) (34,223) (34,223) (34,223)
RETAINED EARNINGS: POST FILING DATE -- -- -- -- -- --
-------- -------- -------- -------- -------- --------
TOTAL OWNER'S EQUITY (NET WORTH) (34,898) (34,898) (34,898) (34,898) (34,898) (34,898)
-------- -------- -------- -------- -------- --------
TOTAL LIABILITIES &
OWNER'S EQUITY (14,549) (14,549) (14,549) (14,549) (14,549) (14,549)
======== ======== ======== ======== ======== ========
<Caption>
LIABILITIES & OWNER'S MONTH MONTH MONTH MONTH
EQUITY MAY JULY AUGUST SEPTEMBER
- --------------------- -------- -------- -------- ---------
LIABILITIES:
POST-PETITION LIABILITIES (MOR-4) -- -- -- --
-------- -------- -------- --------
PRE-PETITION LIABILITIES:
NOTES PAYABLE - SECURED -- -- -- --
PRIORITY DEBT -- -- -- --
FEDERAL INCOME TAX -- -- -- --
FICA/WITHHOLDING -- -- -- --
UNSECURED DEBT -- -- -- --
INTERCOMPANY 20,348 20,348 20,348 20,348
OTHER -- -- -- --
-------- -------- -------- --------
TOTAL PRE-PETITION LIABILITIES 20,348 20,348 20,348 20,348
-------- -------- -------- --------
TOTAL LIABILITIES 20,348 20,348 20,348 20,348
======== ======== ======== ========
OWNER'S EQUITY (DEFICIT):
PREFERRED STOCK -- -- -- --
COMMON STOCK -- -- -- --
ADDITIONAL PAID-IN CAPITAL -- -- -- --
EQUITY IN CONS SUBS (675) (675) (675) (675)
RETAINED EARNINGS: FILING DATE (34,223) (34,223) (34,223) (111,193)
RETAINED EARNINGS: POST FILING DATE -- -- -- --
-------- -------- -------- --------
TOTAL OWNER'S EQUITY (NET WORTH) (34,898) (34,898) (34,898) (111,868)
-------- -------- -------- --------
TOTAL LIABILITIES &
OWNER'S EQUITY (14,549) (14,549) (14,549) (91,520)
======== ======== ======== ========
</Table>
* Per Schedules and Statement of Affairs
MOR-3
CASE NAME: ASSOCIATED RETAILERS HOLDINGS, INC. CASE NUMBER: 01-80023-G3-11
SCHEDULE OF POST-PETITION LIABILITIES
<Table>
<Caption>
MONTH MONTH MONTH MONTH MONTH MONTH
JANUARY FEBRUARY MARCH APRIL MAY JUNE
------- -------- ----- ----- ----- -----
TRADE ACCOUNTS PAYABLE
TAX PAYABLE -- -- -- -- -- --
FEDERAL PAYROLL TAXES -- -- -- -- -- --
STATE PAYROLL & SALES -- -- -- -- -- --
AD VALOREM TAXES -- -- -- -- -- --
OTHER TAXES -- -- -- -- -- --
------- -------- ----- ----- ----- -----
TOTAL TAXES PAYABLE -- -- -- -- -- --
SECURED DEBT POST-PETITION -- -- -- -- -- --
ACCRUED INTEREST PAYABLE -- -- -- -- -- --
* ACCRUED PROFESSIONAL FEES -- -- -- -- -- --
OTHER ACCRUED LIABILITIES: -- -- -- -- -- --
1. -- -- -- -- -- --
2. -- -- -- -- -- --
3. -- -- -- -- -- --
------- -------- ----- ----- ----- -----
TOTAL POST-PETITION LIABILITIES (MOR-3) -- -- -- -- -- --
======= ======== ===== ===== ===== =====
<Caption>
MONTH MONTH MONTH
JULY AUGUST SEPTEMBER
----- ------ ---------
TRADE ACCOUNTS PAYABLE
TAX PAYABLE -- -- --
FEDERAL PAYROLL TAXES -- -- --
STATE PAYROLL & SALES -- -- --
AD VALOREM TAXES -- -- --
OTHER TAXES -- -- --
----- ------ ---------
TOTAL TAXES PAYABLE -- -- --
===== ====== =========
SECURED DEBT POST-PETITION -- -- --
ACCRUED INTEREST PAYABLE -- -- --
* ACCRUED PROFESSIONAL FEES -- -- --
OTHER ACCRUED LIABILITIES: -- -- --
1. -- -- --
2. -- -- --
3. -- -- --
----- ------ ---------
TOTAL POST-PETITION LIABILITIES (MOR-3) -- -- --
===== ====== =========
</Table>
* Payment Requires Court Approval.
MOR-4
CASE NAME: ASSOCIATED RETAILERS HOLDINGS, INC. CASE NUMBER: 01-80023-G3-11
AGING OF POST-PETITION LIABILITIES
MONTH OF SEPTEMBER 2001
<Table>
<Caption>
AD-VALOREM,
DAYS TOTAL TRADE ACCTS FED TAXES STATE TAXES OTHER TAXES OTHER
---- ----- ----------- --------- ----------- ----------- -----
0-30 -- -- -- -- -- --
31-60
61-90
91 +
TOTAL -- -- -- -- -- --
</Table>
AGING OF ACCOUNTS RECEIVABLE
<Table>
<Caption>
MONTH JANUARY FEBRUARY MARCH APRIL MAY
----- ------- -------- ----- ----- ---
0-30 DAYS -- -- -- -- --
31-60 DAYS -- -- -- -- --
61-90 DAYS -- -- -- -- --
91 + DAYS -- -- -- -- --
TOTAL -- -- -- -- --
<Caption>
MONTH JUNE JULY AUGUST SEPTEMBER
----- ---- ---- ------ ---------
0-30 DAYS -- -- -- --
31-60 DAYS -- -- -- --
61-90 DAYS -- -- -- --
91 + DAYS -- -- -- --
TOTAL -- -- -- --
</Table>
MOR-5
CASE NAME: ASSOCIATED RETAILERS HOLDINGS, INC. CASE NUMBER: 01-80023-G3-11
STATEMENT OF INCOME (LOSS)
<Table>
<Caption>
MONTH JANUARY FEBRUARY MARCH APRIL MAY
----- ------- -------- ----- ----- ---
REVENUES (MOR-1) -- -- -- -- --
TOTAL COST OF REVENUES -- -- -- -- --
GROSS PROFIT -- -- -- -- --
OPERATING EXPENSES
Selling & Marketing -- -- -- -- --
General & Administrative -- -- -- -- --
Insiders Compensation -- -- -- -- --
Professional Fees -- -- -- -- --
Other (attach list) -- -- -- -- --
------- -------- ----- ----- ---
TOTAL OPERATING EXPENSES -- -- -- -- --
======= ======== ===== ===== ===
INCOME BEFORE INT, DEPR/TAX (MOR-1) -- -- -- -- --
======= ======== ===== ===== ===
INTEREST EXPENSE -- -- -- -- --
DEPRECIATION -- -- -- -- --
OTHER (INCOME) EXPENSE * -- -- -- -- --
OTHER ITEMS ** -- -- -- -- --
------- -------- ----- ----- ---
TOTAL INT, DEPR & OTHER ITEMS -- -- -- -- --
------- -------- ----- ----- ---
NET INCOME BEFORE TAXES -- -- -- -- --
======= ======== ===== ===== ===
FEDERAL INCOME TAXES -- -- -- -- --
------- -------- ----- ----- ---
NET INCOME (LOSS) (MOR-1) -- -- -- -- --
======= ======== ===== ===== ===
<Caption>
MONTH JUNE JULY AUGUST SEPTEMBER
----- ---- ---- ------ ---------
REVENUES (MOR-1) -- -- -- --
TOTAL COST OF REVENUES -- -- -- --
GROSS PROFIT -- -- -- --
OPERATING EXPENSES
Selling & Marketing -- -- -- --
General & Administrative -- -- -- --
Insiders Compensation -- -- -- --
Professional Fees -- -- -- --
Other (attach list) -- -- -- --
---- ---- ------ ---------
TOTAL OPERATING EXPENSES -- -- -- --
==== ==== ====== =========
INCOME BEFORE INT, DEPR/TAX (MOR-1) -- -- -- --
==== ==== ====== =========
INTEREST EXPENSE -- -- -- --
DEPRECIATION -- -- -- --
OTHER (INCOME) EXPENSE * -- -- -- --
OTHER ITEMS ** -- -- -- --
---- ---- ------ ---------
TOTAL INT, DEPR & OTHER ITEMS -- -- -- --
---- ---- ------ ---------
NET INCOME BEFORE TAXES -- -- -- --
==== ==== ====== =========
FEDERAL INCOME TAXES -- -- -- --
---- ---- ------ ---------
NET INCOME (LOSS) (MOR-1) -- -- -- --
==== ==== ====== =========
</Table>
Accrual Accounting Required, Otherwise Footnote With Explanation
* Footnote Mandatory
** Unusual and/or infrequent item(s) outside the ordinary course of business;
requires footnote
MOR-6
CASE NAME: ASSOCIATED RETAILERS HOLDINGS, INC. CASE NUMBER: 01-80023-G3-11
<Table>
<Caption>
MONTH MONTH MONTH MONTH MONTH
CASH RECEIPTS AND DISBURSEMENTS JANUARY FEBRUARY MARCH APRIL MAY
- ------------------------------- ------- -------- ----- ----- -----
1. CASH - BEGINNING OF MONTH -- -- -- -- --
RECEIPTS:
2. CASH SALES -- -- -- -- --
3. COLLECTION OF ACCOUNTS RECEIVABLE -- -- -- -- --
4. LOANS & ADVANCES (ATTACH LIST) -- -- -- -- --
5. SALE OF ASSETS -- -- -- -- --
6. OTHER (ATTACH LIST) -- -- -- -- --
------- -------- ----- ----- -----
TOTAL RECEIPTS -- -- -- -- --
======= ======== ===== ===== =====
(WITHDRAWAL) CONTRIBUTION BY INDIVIDUAL DEBTOR MFR-2*
DISBURSEMENTS:
7. NET PAYROLL -- -- -- -- --
8. PAYROLL TAXES PAID -- -- -- -- --
9. SALES, USE & OTHER TAXES PAID -- -- -- -- --
10. SECURED / RENTAL / LEASES -- -- -- -- --
11. UTILITIES -- -- -- -- --
12. INSURANCE -- -- -- -- --
13. INVENTORY PURCHASES -- -- -- -- --
14. VEHICLE EXPENSES -- -- -- -- --
15. TRAVEL ENTERTAINMENT -- -- -- -- --
16. REPAIRS, MAINTENANCE & SUPPLIES -- -- -- -- --
17. ADMINISTRATIVE & SELLING -- -- -- -- --
18. OTHER (ATTACH LIST) -- -- -- -- --
------- -------- ----- ----- -----
TOTAL DISBURSEMENTS FROM OPERATIONS -- -- -- -- --
======= ======== ===== ===== =====
19. PROFESSIONAL FEES -- -- -- -- --
20. U.S. TRUSTEE FEES -- -- -- -- --
21. OTHER REORGANIZATION EXPENSES (ATTACH LIST) -- -- -- -- --
------- -------- ----- ----- -----
TOTAL DISBURSEMENTS -- -- -- -- --
======= ======== ===== ===== =====
22. NET CASH FLOW -- -- -- -- --
------- -------- ----- ----- -----
23. CASH - END OF MONTH (MOR-2) -- -- -- -- --
======= ======== ===== ===== =====
<Caption>
MONTH MONTH MONTH MONTH
CASH RECEIPTS AND DISBURSEMENTS JUNE JULY AUGUST SEPTEMBER
- ------------------------------- ----- ----- ------ ---------
1. CASH - BEGINNING OF MONTH -- -- -- --
RECEIPTS:
2. CASH SALES -- -- -- --
3. COLLECTION OF ACCOUNTS RECEIVABLE -- -- -- --
4. LOANS & ADVANCES (ATTACH LIST) -- -- -- --
5. SALE OF ASSETS -- -- -- --
6. OTHER (ATTACH LIST) -- -- -- --
----- ----- ------ ---------
TOTAL RECEIPTS -- -- -- --
===== ===== ====== =========
(WITHDRAWAL) CONTRIBUTION BY INDIVIDUAL DEBTOR MFR-2*
DISBURSEMENTS:
7. NET PAYROLL -- -- -- --
8. PAYROLL TAXES PAID -- -- -- --
9. SALES, USE & OTHER TAXES PAID -- -- -- --
10. SECURED / RENTAL / LEASES -- -- -- --
11. UTILITIES -- -- -- --
12. INSURANCE -- -- -- --
13. INVENTORY PURCHASES -- -- -- --
14. VEHICLE EXPENSES -- -- -- --
15. TRAVEL ENTERTAINMENT -- -- -- --
16. REPAIRS, MAINTENANCE & SUPPLIES -- -- -- --
17. ADMINISTRATIVE & SELLING -- -- -- --
18. OTHER (ATTACH LIST) -- -- -- --
----- ----- ------ ---------
TOTAL DISBURSEMENTS FROM OPERATIONS -- -- -- --
===== ===== ====== =========
19. PROFESSIONAL FEES -- -- -- --
20. U.S. TRUSTEE FEES -- -- -- --
21. OTHER REORGANIZATION EXPENSES (ATTACH LIST) -- -- -- --
----- ----- ------ ---------
TOTAL DISBURSEMENTS -- -- -- --
===== ===== ====== =========
22. NET CASH FLOW -- -- -- --
----- ----- ------ ---------
23. CASH - END OF MONTH (MOR-2) -- -- -- --
===== ===== ====== =========
</Table>
* applies to Individual debtor's only.
MOR-7
CASE NAME: ASSOCIATED RETAILERS HOLDINGS, INC. CASE NUMBER: 01-80023-G3-11
CASH ACCOUNT RECONCILIATION
MONTH OF SEPTEMBER 2001
<Table>
<Caption>
BANK NAME
- ---------
ACCOUNT NUMBER
ACCOUNT TYPE TOTAL
-----
BANK BALANCE -
DEPOSIT IN TRANSIT -
OUTSTANDING CHECKS -
-----
ADJUSTED BANK BALANCE -
=====
BEGINNING CASH - PER BOOKS -
RECEIPTS -
TRANSFERS BETWEEN ACCOUNTS -
(WITHDRAWAL) CONTRIBUTION - BY INDIVIDUAL DEBTOR MFR-2 -
CHECKS / OTHER DISBURSEMENTS -
-----
ENDING CASH - PER BOOKS -
=====
</Table>
MOR-8
CASE NAME: ASSOCIATED RETAILERS HOLDINGS, INC. CASE NUMBER: 01-80023-G3-11
PAYMENTS TO INSIDERS AND PROFESSIONALS
OF THE TOTAL DISBURSEMENTS SHOWN FOR THE MONTH, LIST THE AMOUNT PAID TO INSIDERS
(AS DEFINED IN SECTION 101(30)(A)-(F) OF THE U. S. BANKRUPTCY CODE) AND THE
PROFESSIONALS. ALSO, FOR INSIDERS IDENTIFY THE TYPE OF COMPENSATION PAID (E.G.,
SALARY, COMMISSION, BONUS, ETC.) (ATTACH ADDITIONAL PAGES AS NECESSARY).
<Table>
<Caption>
MONTH MONTH MONTH MONTH MONTH
INSIDERS: NAME/POSITION/COMP TYPE JANUARY FEBRUARY MARCH APRIL MAY
- --------------------------------- ------- -------- ----- ----- -----
1. Richard A. Carver/President -- -- -- -- --
2. Jackie Holland/Vice President -- -- -- -- --
3. Craig A. Reynolds/Vice President, Secretary, Director -- -- -- -- --
4. Kristi E. Gross/Assistant Secretary -- -- -- -- --
5. Ronald McCaslin/Director -- -- -- -- --
6. -- -- -- -- --
------- -------- ----- ----- -----
TOTAL INSIDERS (MOR--1) -- -- -- -- --
======= ======== ===== ===== =====
<Caption>
MONTH MONTH MONTH MONTH
INSIDERS: NAME/POSITION/COMP TYPE JUNE JULY AUGUST SEPTEMBER
- --------------------------------- ----- ----- ------ ---------
1. Richard A. Carver/President -- -- -- --
2. Jackie Holland/Vice President -- -- -- --
3. Craig A. Reynolds/Vice President, Secretary, Director -- -- -- --
4. Kristi E. Gross/Assistant Secretary -- -- -- --
5. Ronald McCaslin/Director -- -- -- --
6. -- -- -- --
----- ----- ------ ---------
TOTAL INSIDERS (MOR--1) -- -- -- --
===== ===== ====== =========
</Table>
<Table>
<Caption>
MONTH MONTH MONTH MONTH MONTH
PROFESSIONALS/NAME/ORDER DATE JANUARY FEBRUARY MARCH APRIL MAY
- ----------------------------- ------- -------- ----- ----- -----
1. -- -- -- -- --
2. -- -- -- -- --
3. -- -- -- -- --
4. -- -- -- -- --
5. -- -- -- -- --
6. -- -- -- -- --
------- -------- ----- ----- -----
TOTAL PROFESSIONALS (MOR-1) -- -- -- -- --
======= ======== ===== ===== =====
<Caption>
MONTH MONTH MONTH MONTH
PROFESSIONALS/NAME/ORDER DATE JUNE JULY AUGUST AUGUST
- ----------------------------- ----- ----- ------ ------
1. -- -- -- --
2. -- -- -- --
3. -- -- -- --
4. -- -- -- --
5. -- -- -- --
6. -- -- -- --
----- ----- ------ ------
TOTAL PROFESSIONALS (MOR-1) -- -- -- --
===== ===== ====== ======
</Table>
MOR-9
UNITED STATES BANKRUPTCY COURT
SOUTHERN DISTRICT OF TEXAS
HOUSTON DIVISION
<Table>
CASE NAME: FIRST VALUE HOMES, INC. PETITION DATE: JANUARY 11, 2001
CASE NUMBER: 01-80025-G3-11
MONTHLY OPERATING REPORT SUMMARY FOR MONTH SEPTEMBER YEAR 2001
--------- ----
MONTH JANUARY FEBRUARY MARCH APRIL MAY
----- ------------ ------------ ------------ ------------ ------------
REVENUES (MOR-6) 546,724 1,125,516 1,076,709 886,557 989,174
INCOME BEFORE INT, DEPREC./TAX (MOR-6) (137,907) (17,501,956) 8,244,167 2,842,892 (5,703,621)
NET INCOME (LOSS) (MOR-6) (174,530) (17,432,290) 8,106,288 2,842,892 (5,703,621)
PAYMENTS TO INSIDERS (MOR-9) 19,385 25,486 34,080 15,302 9,489
PAYMENTS TO PROFESSIONALS (MOR-9) -- -- -- -- --
TOTAL DISBURSEMENTS (MOR-8) 572,976 1,375,488 1,382,197 1,832,078 1,012,165
<Caption>
MONTH JUNE JULY AUGUST SEPTEMBER
----- ------------ ------------ ------------ ------------
REVENUES (MOR-6) 360,921 143,341 105,750 --
INCOME BEFORE INT, DEPREC./TAX (MOR-6) 254,127 32,584 7,497 (78,726)
NET INCOME (LOSS) (MOR-6) 254,127 32,584 7,497 (84,711)
PAYMENTS TO INSIDERS (MOR-9) 10,385 7,096 4,327 4,327
PAYMENTS TO PROFESSIONALS (MOR-9) -- -- -- --
TOTAL DISBURSEMENTS (MOR-8) 424,772 121,200 84,130 56,365
</Table>
*** The ORIGINAL of this document MUST BE FILED with the United States
Bankruptcy Court and a COPY MUST BE SENT to the United States Trustee ***
- --------------------------------------------------------------------------------
REQUIRED INSURANCE MAINTAINED
AS OF SIGNATURE DATE
<Table>
<Caption>
EXP.
DATE
----
CASUALTY YES (X) NO ( ) 06/30/02
LIABILITY YES (X) NO ( ) 06/30/02
VEHICLE YES (X) NO ( ) 06/30/02
WORKER'S YES (X) NO ( ) 03/27/02
OTHER - DIRECTOR/OFFICER YES (X) NO ( ) 01/23/02
</Table>
- --------------------------------------------------------------------------------
ATTORNEY NAME:
FIRM: Floyd, Isgur, Rios & Warlich, P. C.
Address: 700 Louisiana, Suite 4600
Address:
City, State, ZIP: Houston, TX 77002-2732
Telephone: 713-222-1470
Fax: 713-222-1475
- --------------------------------------------------------------------------------
<Table>
<Caption>
CIRCLE ONE
Are all accounts receivable being collected within terms? YES NO
Are all posted-petition liabilities, including taxes,
being paid within terms? YES NO
Have any pre-petition liabilities been paid? YES NO
If so, describe. PURSUANT TO COURT ORDER AUTHORIZING
PAYMENTS OF PRE-PETITION WAGES, SALARIES, COMMISSIONS AND
COMPENSATION SIGNED JANUARY 11, 2001.
Are all funds received being deposited into DIP bank accounts? YES NO
Were any assets disposed of outside the normal course of business? YES NO
If so, describe. PROPERTY, PLANT & EQUIPMENT AND OTHER ASSET SALES
MADE PURSUANT TO VARIOUS COURT ORDERS AUTHORIZING SUCH ASSET SALES.
Are all U.S. Trustee Quarterly Fee Payments current? YES NO
What is the status of your Plan of Reorganization? PLAN OF REORGANIZATION
CONFIRMED BY COURT ON AUGUST 14, 2001. EFFECTIVE DATE OF REORGANIZATION -
OCTOBER 3, 2001.
</Table>
I certify under penalty of perjury that the
following complete Monthly Operating Report
(MOR), consisting of MOR-1 through MOR-9
plus attachments, is true and correct.
SIGNED /s/ CRAIG A. REYNOLDS
--------------------------------------
TITLE Vice President of Finance
--------------------------------------
MOR-1
CASE NAME: FIRST VALUE HOMES, INC. CASE NUMBER: 01-80025-G3-11
COMPARATIVE BALANCE SHEETS
<Table>
<Caption>
MONTH MONTH MONTH MONTH MONTH
ASSETS FILING DATE* JANUARY FEBRUARY MARCH APRIL MAY
------ ------------ ------------ ------------ ------------ ------------ ------------
CURRENT ASSETS
Cash 959,262 60,050 20,730 460,784 328,786 312,551
Accounts Receivable, Net 706,315 803,621 153,822 117,099 150,512 --
Inventory: Lower of Cost or Market 15,329,578 14,905,150 2,312,674 6,708,598 7,480,939 2,832,000
Prepaid Expenses 451,182 447,829 -- -- -- --
Investments -- -- -- -- -- --
Other 898,117 977,448 777,448 777,448 777,448 17,078
------------ ------------ ------------ ------------ ------------ ------------
TOTAL CURRENT ASSETS 18,344,454 17,194,097 3,264,674 8,063,928 8,737,684 3,161,629
============ ============ ============ ============ ============ ============
PROPERTY, PLANT&EQUIP, @ COST 7,873,589 7,875,461 7,878,249 7,634,426 7,634,426 7,634,426
Less Accumulated Depreciation 3,219,186 3,338,481 3,365,806 3,485,782 3,485,782 3,485,782
Less Impairment of Assets 4,000,000 4,148,644 4,148,644 4,148,644
------------ ------------ ------------ ------------ ------------ ------------
Net Book Value of PP & E 4,654,402 4,536,980 512,443 0 0 --
============ ============ ============ ============ ============ ============
OTHER ASSETS:
1. Tax Deposits -- -- -- -- -- --
2. Investments in Subs -- -- -- -- -- --
3. Deposits -- -- -- -- -- --
4. Interests in Insurance Policies -- -- -- -- -- --
5. Note Receivable -- -- -- -- -- --
6. Post-Petition Intercompany -- 373,532 -- -- -- --
------------ ------------ ------------ ------------ ------------ ------------
TOTAL ASSETS 22,998,856 22,104,609 3,777,117 8,063,928 8,737,683 3,161,628
============ ============ ============ ============ ============ ============
<Caption>
MONTH MONTH MONTH MONTH
ASSETS JUNE JULY AUGUST SEPTEMBER
------ ------------ ------------ ------------ ------------
CURRENT ASSETS
Cash 314,552 302,829 329,926 393,079
Accounts Receivable, Net -- -- -- --
Inventory: Lower of Cost or Market -- -- -- --
Prepaid Expenses -- 56,002 33,705 33,705
Investments -- --
Other 17,078 17,077 17,077 17,077
------------ ------------ ------------ ------------
TOTAL CURRENT ASSETS 331,630 375,907 380,708 443,861
============ ============ ============ ============
PROPERTY, PLANT&EQUIP, @ COST -- -- -- --
Less Accumulated Depreciation -- -- -- --
Less Impairment of Assets -- -- -- --
------------ ------------ ------------ ------------
Net Book Value of PP & E -- -- -- --
============ ============ ============ ============
OTHER ASSETS:
1. Tax Deposits -- -- -- --
2. Investments in Subs -- -- -- --
3. Deposits -- -- -- --
4. Interests in Insurance Policies -- -- -- --
5. Note Receivable -- -- -- --
6. Post-Petition Intercompany -- -- -- --
------------ ------------ ------------ ------------
TOTAL ASSETS 331,629 375,907 380,708 443,861
============ ============ ============ ============
</Table>
* Per Schedules and Statement of Affairs
MOR-2
CASE NAME: FIRST VALUE HOMES, INC. CASE NUMBER: 01-80025-G3-11
COMPARATIVE BALANCE SHEETS
<Table>
<Caption>
LIABILITIES & OWNER'S MONTH MONTH MONTH MONTH
EQUITY FILING DATE* JANUARY FEBRUARY MARCH APRIL
- --------------------- ------------ ------------ ------------ ------------ ------------
LIABILITIES:
POST-PETITION LIABILITIES (MOR-4) 179,041 701,839 537,990 416,462
------------ ------------ ------------ ------------
PRE-PETITION LIABILITIES:
Notes Payable - Secured 9,611,754 9,027,677 7,541,779 6,535,042 3,815,813
Priority Debt 263,363 241,345 4,434 -- --
Federal Income Tax (930,877) (930,877) (930,877) (930,877) (930,877)
FICA/Withholding -- -- -- -- --
Unsecured Debt 2,403,003 2,114,270 2,256,818 1,083,408 1,750,727
Intercompany 20,892,924 20,888,994 19,645,789 19,733,059 19,737,359
Other -- -- -- --
------------ ------------ ------------ ------------ ------------
TOTAL PRE-PETITION LIABILITIES 32,240,167 31,341,410 28,517,944 26,420,632 24,373,022
------------ ------------ ------------ ------------ ------------
TOTAL LIABILITIES 32,240,167 31,520,451 29,219,783 26,958,621 24,789,484
============ ============ ============ ============ ============
OWNER'S EQUITY (DEFICIT):
Preferred Stock -- --
Common Stock -- --
ADDITIONAL PAID-IN CAPITAL 1,682,532 1,682,532 1,682,532 1,682,532 1,682,532
RETAINED EARNINGS: Filing Date (10,923,843) (10,923,843) (10,923,843) (10,923,843) (10,923,843)
RETAINED EARNINGS: Post Filing Date -- (174,530) (16,201,355) (9,653,382) (6,810,490)
------------ ------------ ------------ ------------ ------------
TOTAL OWNER'S EQUITY (NET WORTH) (9,241,311) (9,415,842) (25,442,666) (18,894,693) (16,051,801)
------------ ------------ ------------ ------------ ------------
TOTAL LIABILITIES &
OWNER'S EQUITY 22,998,856 22,104,609 3,777,117 8,063,928 8,737,683
============ ============ ============ ============ ============
<Caption>
LIABILITIES & OWNER'S MONTH MONTH MONTH MONTH MONTH
EQUITY MAY JUNE JULY AUGUST SEPTEMBER
- --------------------- ------------ ------------ ------------ ------------ ------------
LIABILITIES:
POST-PETITION LIABILITIES (MOR-4) 297,548 10,788 22,482 185 185
------------ ------------ ------------ ------------ ------------
PRE-PETITION LIABILITIES:
Notes Payable - Secured 2,832,352 -- -- -- --
Priority Debt -- -- -- -- --
Federal Income Tax -- -- -- -- --
FICA/Withholding -- -- -- -- --
Unsecured Debt 2,049,789 2,084,776 2,084,776 2,084,776 2,063,218
Intercompany 19,737,360 19,737,360 19,737,360 19,737,360 19,737,360
Other -- -- -- -- --
------------ ------------ ------------ ------------ ------------
TOTAL PRE-PETITION LIABILITIES 24,619,502 21,822,136 21,822,136 21,822,136 21,800,578
------------ ------------ ------------ ------------ ------------
TOTAL LIABILITIES 24,917,050 21,832,924 21,844,618 21,822,321 21,800,763
============ ============ ============ ============ ============
OWNER'S EQUITY (DEFICIT):
Preferred Stock
Common Stock
ADDITIONAL PAID-IN CAPITAL 1,682,532 1,682,532 1,682,532 1,682,532 1,682,532
RETAINED EARNINGS: Filing Date (10,923,843) (10,923,843) (10,923,843) (10,923,843) (10,923,843)
RETAINED EARNINGS: Post Filing Date (12,514,111) (12,259,984) (12,227,399) (12,227,399) (12,227,399)
------------ ------------ ------------ ------------ ------------
TOTAL OWNER'S EQUITY (NET WORTH) (21,755,422) (21,501,295) (21,468,711) (21,441,613) (21,356,902)
------------ ------------ ------------ ------------ ------------
TOTAL LIABILITIES &
OWNER'S EQUITY 3,161,628 331,629 375,907 380,708 443,861
============ ============ ============ ============ ============
</Table>
* Per Schedules and Statement of Affairs
MOR-3
CASE NAME: FIRST VALUE HOMES, INC. CASE NUMBER: 01-80025-G3-11
SCHEDULE OF POST-PETITION LIABILITIES
<Table>
<Caption>
MONTH MONTH MONTH MONTH MONTH MONTH
JANUARY FEBRUARY MARCH APRIL MAY JUNE
---------- ---------- ---------- ---------- ---------- ----------
TRADE ACCOUNTS PAYABLE 87,643 396,147 230,515 257,064 81,250 6,490
---------- ---------- ---------- ---------- ---------- ----------
TAX PAYABLE
Federal Payroll Taxes 10,805 58,000 78,314 81,715 -- --
State Payroll & Sales -- -- -- -- -- --
Ad Valorem Taxes -- -- -- -- -- --
Other Taxes -- -- -- -- -- --
---------- ---------- ---------- ---------- ---------- ----------
TOTAL TAXES PAYABLE 10,805 58,000 78,314 81,715 -- --
========== ========== ========== ========== ========== ==========
SECURED DEBT POST-PETITION 80,593 80,593 80,593 -- -- --
ACCRUED INTEREST PAYABLE -- -- -- -- -- --
* ACCRUED PROFESSIONAL FEES -- -- -- -- -- --
OTHER ACCRUED LIABILITIES: -- -- --
1. Intercompany -- 167,099 148,568 77,683 216,298 4,297
2 -- -- --
3 -- -- --
---------- ---------- ---------- ---------- ---------- ----------
TOTAL POST-PETITION LIABILITIES (MOR-3) 179,041 701,839 537,990 416,462 297,548 10,788
========== ========== ========== ========== ========== ==========
<Caption>
MONTH MONTH MONTH
JULY AUGUST SEPTEMBER
---------- ---------- ----------
TRADE ACCOUNTS PAYABLE -- -- --
---------- ---------- ----------
TAX PAYABLE
Federal Payroll Taxes -- -- --
State Payroll & SALES -- -- --
Ad Valorem Taxes -- -- --
Other Taxes -- -- --
---------- ---------- ----------
TOTAL TAXES PAYABLE -- -- --
========== ========== ==========
SECURED DEBT POST-PETITION -- -- --
ACCRUED INTEREST PAYABLE -- -- --
* ACCRUED PROFESSIONAL FEES -- -- --
OTHER ACCRUED LIABILITIES:
1. Intercompany 22,482 185 185
2
3
---------- ---------- ----------
TOTAL POST-PETITION LIABILITIES (MOR-3) 22,482 185 185
========== ========== ==========
</Table>
* Payment Requires Court Approval.
MOR-4
CASE NAME: FIRST VALUE HOMES, INC. CASE NUMBER: 01-80025-G3-11
AGING OF POST-PETITION LIABILITIES
MONTH OF SEPTEMBER 2001
<Table>
<Caption>
AD-VALOREM,
DAYS TOTAL TRADE ACCTS FED TAXES STATE TAXES OTHER TAXES OTHER
---- ------------ ----------- ----------- ----------- ----------- ------------
0-30 185 -- -- -- -- 185
31-60 --
61-90 --
91 + --
TOTAL 185 -- -- -- -- 185
</Table>
AGING OF ACCOUNTS RECEIVABLE
<Table>
<Caption>
MONTH JANUARY FEBRUARY MARCH APRIL MAY JUNE JULY AUGUST SEPTEMBER
----- ------------ ------------ ----------- --------- -------- -------- ------ ------ ---------
0-30 DAYS -- -- -- -- -- -- -- -- --
31-60 DAYS -- -- -- -- -- -- -- -- --
61-90 DAYS -- -- -- -- -- -- -- -- --
91 + DAYS 803,621 153,822 117,099 150,512 -- -- -- -- --
TOTAL 803,621 153,822 117,099 150,512 -- -- -- -- --
</Table>
MOR-5
CASE NAME: FIRST VALUE HOMES, INC. CASE NUMBER: 01-80025-G3-11
STATEMENT OF INCOME (LOSS)
<Table>
<Caption>
MONTH JANUARY FEBRUARY MARCH APRIL MAY
----- ------------ ------------ ------------ ------------ ------------
REVENUES (MOR-1) 546,724 1,125,516 1,076,709 886,557 989,174
TOTAL COST OF REVENUES 692,934 1,302,177 1,208,730 1,521,774 1,082,628
GROSS PROFIT (146,210) (176,661) (132,021) (635,217) (93,454)
OPERATING EXPENSES:
Selling & Marketing (17,935) 58,851 537,700 520,762 36,390
General & Administrative 9,632 742,652 50,338 78,637 80,129
Insiders Compensation -- 25,846 34,080 15,302 9,489
Impairment of Assets -- 16,497,946 (8,998,306) (4,092,810) 5,484,160
Professional Fees -- -- -- --
Other (attach list) -- -- --
------------ ------------ ------------ ------------ ------------
TOTAL OPERATING EXPENSES (8,303) 17,325,295 (8,376,188) (3,478,109) 5,610,167
============ ============ ============ ============ ============
INCOME BEFORE INT, DEPR/TAX (MOR-1) (137,907) (17,501,956) 8,244,167 2,842,892 (5,703,621)
============ ============ ============ ============ ============
INTEREST EXPENSE 67,037 (66,100) -- -- --
DEPRECIATION 123,310 -- 137,879 -- --
OTHER (INCOME) EXPENSE * (875) (3,567) -- -- --
OTHER ITEMS ** -- -- --
------------ ------------ ------------ ------------ ------------
TOTAL INT, DEPR & OTHER ITEMS 189,472 (69,666) 137,879 -- --
------------ ------------ ------------ ------------ ------------
NET INCOME BEFORE TAXES (327,379) (17,432,290) 8,106,288 2,842,892 (5,703,621)
============ ============ ============ ============ ============
FEDERAL INCOME TAXES 152,849
------------ ------------ ------------ ------------ ------------
NET INCOME (LOSS) (MOR-1) (174,530) (17,432,290) 8,106,288 2,842,892 (5,703,621)
============ ============ ============ ============ ============
<Caption>
MONTH JUNE JULY AUGUST SEPTEMBER FILING TO DATE
----- ------------ ------------ ------------ ------------ --------------
REVENUES (MOR-1) 360,921 143,341 105,750 -- 5,234,692
TOTAL COST OF REVENUES 318,794 103,661 93,926 -- 6,324,624
GROSS PROFIT 42,126 39,680 11,824 -- (1,089,932)
OPERATING EXPENSES:
Selling & Marketing -- -- -- 1,135,768
General & Administrative 81,037 -- -- 74,399 1,116,825
Insiders Compensation 10,385 7,096 4,327 4,327 110,852
Impairment of Assets (303,423) 8,587,566
Professional Fees --
Other (attach list) --
------------ ------------ ------------ ------------ ------------
TOTAL OPERATING EXPENSES (212,001) 7,096 4,327 78,726 10,951,012
============ ============ ============ ============ ============
INCOME BEFORE INT, DEPR/TAX (MOR-1) 254,127 32,584 7,497 (78,726) (12,040,944)
============ ============ ============ ============ ============
INTEREST EXPENSE -- -- -- -- 938
DEPRECIATION -- -- -- -- 261,189
OTHER (INCOME) EXPENSE * -- -- -- 5,985 1,543
OTHER ITEMS ** -- -- -- -- --
------------ ------------ ------------ ------------ ------------
TOTAL INT, DEPR & OTHER ITEMS -- -- -- 5,985 263,670
------------ ------------ ------------ ------------ ------------
NET INCOME BEFORE TAXES 254,127 32,584 7,497 (84,711) (12,304,614)
============ ============ ============ ============ ============
FEDERAL INCOME TAXES 152,849
------------ ------------ ------------ ------------ ------------
NET INCOME (LOSS) (MOR-1) 254,127 32,584 7,497 (84,711) (12,151,765)
============ ============ ============ ============ ============
</Table>
Accrual Accounting Required, Otherwise Footnote With Explanation
* Footnote Mandatory
** Unusual and/or infrequent item(s) outside the ordinary course of business;
requires footnote
MOR-6
CASE NAME: FIRST VALUE HOMES, INC. CASE NUMBER: 01-80025-G3-11
<Table>
<Caption>
MONTH MONTH MONTH MONTH MONTH
CASH RECEIPTS AND DISBURSEMENTS JANUARY FEBRUARY MARCH APRIL MAY
- ------------------------------- ----------- ----------- ------------ ------------ -----------
1. CASH - BEGINNING OF MONTH 959,262 60,050 20,730 460,784 328,786
RECEIPTS:
2. CASH SALES 352,188 1,145,758 2,100,267 1,709,657 989,174
3. COLLECTION OF ACCOUNTS RECEIVABLE 643 505,198 14,319 --
4. LOANS & ADVANCES (ATTACH LIST) -- -- --
5. SALE OF ASSETS -- -- 250,000 --
6. INTERCOMPANY -- 11,844 -- -- 6,756
----------- ----------- ------------ ------------ -----------
TOTAL RECEIPTS 352,831 1,662,800 2,364,586 1,709,657 995,930
=========== =========== ============ ============ ===========
(Withdrawal) Contribution by Individual Debtor MFR-2*
DISBURSEMENTS:
7. NET PAYROLL 78,149 -- -- --
8. PAYROLL TAXES PAID -- -- -- --
9. SALES, USE & OTHER TAXES PAID -- 360 180 250 --
10. SECURED / RENTAL / LEASES -- 862,108 371,216 1,198,912 785,969
11. UTILITIES 2,161 2,889 61,791 36,000 16,390
12. INSURANCE 8,970 85 46,311 -- --
13. INVENTORY PURCHASES -- -- 870,944 591,107 204,834
14. VEHICLE EXPENSES 2,532 3,700 2,926 3,500 3,322
15. TRAVEL ENTERTAINMENT 886 860 2,138 810 --
16. REPAIRS, MAINTENANCE & SUPPLIES 1,495 3,606 26,691 1,500 1,650
17. ADMINISTRATIVE & SELLING 256,488 509,934 -- -- --
18. INTERCOMPANY 901,361 318,578 542,334 9,577 --
19. OTHER (ATTACH LIST) --
----------- ----------- ------------ ------------ -----------
TOTAL DISBURSEMENTS FROM OPERATIONS 1,252,043 1,702,120 1,924,531 1,841,656 1,012,165
=========== =========== ============ ============ ===========
20. PROFESSIONAL FEES --
21. U.S. TRUSTEE FEES --
22. OTHER REORGANIZATION EXPENSES (ATTACH LIST) --
----------- ----------- ------------ ------------ -----------
TOTAL DISBURSEMENTS 1,252,043 1,702,120 1,924,531 1,841,656 1,012,165
=========== =========== ============ ============ ===========
23. NET CASH FLOW (899,212) (39,320) 440,055 (131,999) (16,235)
----------- ----------- ------------ ------------ -----------
24. CASH - END OF MONTH (MOR-2) 60,050 20,730 460,784 328,786 312,551
=========== =========== ============ ============ ===========
<Caption>
MONTH MONTH MONTH MONTH FILING TO
CASH RECEIPTS AND DISBURSEMENTS JUNE JULY AUGUST SEPTEMBER DATE
- ------------------------------- ----------- ------------ ------------ ------------ ------------
1. CASH - BEGINNING OF MONTH 312,551 314,552 302,829 329,925 959,262
RECEIPTS:
2. CASH SALES 360,921 143,342 105,750 78,558 6,985,614
3. COLLECTION OF ACCOUNTS RECEIVABLE -- 520,159
4. LOANS & ADVANCES (ATTACH LIST) -- --
5. SALE OF ASSETS -- 250,000
6. INTERCOMPANY 65,852 -- 5,476 40,960 130,888
----------- ------------ ------------ ------------ ------------
TOTAL RECEIPTS 426,773 143,342 111,226 119,518 7,886,661
=========== ============ ============ ============ ============
(Withdrawal) Contribution by Individual Debtor MFR-2*
DISBURSEMENTS:
7. NET PAYROLL 19,089 -- 97,238
8. PAYROLL TAXES PAID 865 -- 865
9. SALES, USE & OTHER TAXES PAID -- 790
10. SECURED / RENTAL / LEASES 245,256 -- 15,367 -- 3,478,827
11. UTILITIES 11,500 -- 15,278 -- 146,009
12. INSURANCE -- -- 2,734 -- 58,100
13. INVENTORY PURCHASES 168,016 121,200 26,341 56,365 2,038,806
14. VEHICLE EXPENSES -- -- 876 -- 16,855
15. TRAVEL ENTERTAINMENT -- -- -- -- 4,695
16. REPAIRS, MAINTENANCE & SUPPLIES -- -- 3,144 -- 38,086
17. ADMINISTRATIVE & SELLING -- -- 436 -- 766,858
18. INTERCOMPANY -- 33,865 -- -- 1,805,715
19. OTHER (ATTACH LIST) -- --
----------- ------------ ------------ ------------ ------------
TOTAL DISBURSEMENTS FROM OPERATIONS 424,772 155,065 84,130 56,365 8,452,845
=========== ============ ============ ============ ============
20. PROFESSIONAL FEES --
21. U.S. TRUSTEE FEES --
22. OTHER REORGANIZATION EXPENSES (ATTACH LIST) --
----------- ------------ ------------ ------------ ------------
TOTAL DISBURSEMENTS 424,772 155,065 84,130 56,365 8,452,845
=========== ============ ============ ============ ============
23. NET CASH FLOW 2,001 (11,723) 27,096 63,153 (566,184)
----------- ------------ ------------ ------------ ------------
24. CASH - END OF MONTH (MOR-2) 314,552 302,829 329,925 393,079 393,079
=========== ============ ============ ============ ============
</Table>
* applies to Individual debtor's only
MOR-7
CASE NAME: FIRST VALUE HOMES, INC. CASE NUMBER: 01-80025-G3-11
CASH ACCOUNT RECONCILIATION
MONTH OF SEPTEMBER 2001
<Table>
<Caption>
BANK NAME Bank of America Bank of America First Union First Union
- --------- --------------- --------------- -------------- ---------------
ACCOUNT NUMBER # 3755500056 # 658753793 # 17765056 # 2070660264971
ACCOUNT TYPE OPERATING OPERATING CHECKING OPERATING
--------------- --------------- -------------- ---------------
BANK BALANCE 393,079 -- -- --
DEPOSIT IN TRANSIT -- -- -- --
OUTSTANDING CHECKS -- -- -- --
-------------- -------------- -------------- --------------
ADJUSTED BANK BALANCE 393,079 -- -- --
============== ============== ============== ==============
BEGINNING CASH - PER BOOKS 329,926 -- -- --
RECEIPTS 78,558 -- -- --
TRANSFERS BETWEEN ACCOUNTS 40,960 -- -- --
(WITHDRAWAL) CONTRIBUTION - BY INDIVIDUAL DEBTOR MFR-2 -- -- -- --
CHECKS / OTHER DISBURSEMENTS (56,365) -- -- --
-------------- -------------- -------------- --------------
ENDING CASH - PER BOOKS 393,079 -- -- --
============== ============== ============== ==============
<Caption>
BANK NAME B First Union First Union Petty Cash
- --------- --------------- -------------- --------------
ACCOUNT NUMBER # 699969 # 1191495
ACCOUNT TYPE CHECKING OPERATING OTHER FUNDS TOTAL
--------------- --------------- -------------- --------------
BANK BALANCE -- -- -- 393,079
DEPOSIT IN TRANSIT -- -- -- --
OUTSTANDING CHECKS -- -- -- --
-------------- -------------- -------------- --------------
ADJUSTED BANK BALANCE -- -- -- 393,079
============== ============== ============== ==============
BEGINNING CASH - PER BOOKS -- -- -- 329,926
RECEIPTS -- -- -- 78,558
TRANSFERS BETWEEN ACCOUNTS -- -- -- 40,960
(WITHDRAWAL) CONTRIBUTION - BY INDIVIDUAL DEBTOR MFR-2 -- -- -- --
CHECKS / OTHER DISBURSEMENTS -- -- -- (56,365)
-------------- -------------- -------------- --------------
ENDING CASH - PER BOOKS -- -- -- 393,079
============== ============== ============== ==============
</Table>
MOR-8
CASE NAME: FIRST VALUE HOMES, INC. CASE NUMBER: 01-80025-G3-11
PAYMENTS TO INSIDERS AND PROFESSIONALS
OF THE TOTAL DISBURSEMENTS SHOWN FOR THE MONTH, LIST THE AMOUNT PAID TO INSIDERS
(AS DEFINED IN SECTION 101(30)(A)-(F) OF THE U. S. BANKRUPTCY CODE) AND THE
PROFESSIONALS. ALSO, FOR INSIDERS IDENTIFY THE TYPE OF COMPENSATION PAID (E.G.,
SALARY, COMMISSION, BONUS, ETC.) (ATTACH ADDITIONAL PAGES AS NECESSARY).
<Table>
<Caption>
INSIDERS: NAME/POSITION/COMP TYPE MONTH MONTH MONTH MONTH MONTH MONTH
JANUARY FEBRUARY MARCH APRIL MAY JUNE
------- -------- ------- ------- ------- -------
1. Dennis L. Jones/President -- -- -- -- -- --
2. CHARLES N. CARNEY, JR./VICE PRESIDENT, DIRECTOR -- -- -- -- -- --
3. VANESSA T. HAYES/VICE PRESIDENT 3,635 4,846 6,058 4,846 4,846 6,058
4. STEPHEN P. PAYNE/VICE PRESIDENT 4,500 6,000 9,252 4,100 1,181 --
5. CRAIG A. REYNOLDS/CFO, ASST SECRETARY, DIRECTOR -- -- -- -- -- --
6. KRISTI E. GROSS/ASSISTANT SECRETARY -- -- -- -- -- --
7. VICKI CRAIG/ASSISTANT SECRETARY 2,596 3,462 4,347 3,472 3,462 4,327
8. RONALD H. KRUEGER/VP TREASURER 8,654 11,538 14,423 2,885 -- --
------- -------- ------- ------- ------- -------
TOTAL INSIDERS (MOR-1) 19,385 25,846 34,080 15,302 9,489 10,385
======= ======== ======= ======= ======= =======
<Caption>
INSIDERS: NAME/POSITION/COMP TYPE MONTH MONTH MONTH
JULY AUGUST SEPTEMBER
------- -------- ---------
1. Dennis L. Jones/President -- -- --
2. CHARLES N. CARNEY, JR./VICE PRESIDENT, DIRECTOR -- -- --
3. VANESSA T. HAYES/VICE PRESIDENT 3,635 -- --
4. STEPHEN P. PAYNE/VICE PRESIDENT -- -- --
5. CRAIG A. REYNOLDS/CFO, ASST SECRETARY, DIRECTOR -- -- --
6. KRISTI E. GROSS/ASSISTANT SECRETARY -- -- --
7. VICKI CRAIG/ASSISTANT SECRETARY 3,462 4,327 4,327
8. RONALD H. KRUEGER/VP TREASURER -- -- --
------- -------- --------
TOTAL INSIDERS (MOR-1) 7,096 4,327 4,327
======= ======== ========
</Table>
<Table>
<Caption>
MONTH MONTH MONTH MONTH MONTH MONTH MONTH MONTH MONTH
PROFESSIONALS/NAME/ORDER DATE JANUARY FEBRUARY MARCH APRIL MAY JUNE JULY JULY JULY
- ----------------------------- ------- -------- ----- ----- ------- ----- ----- ----- -----
1. -- -- -- -- -- -- -- -- --
2. -- -- -- -- -- -- -- -- --
3. -- -- -- -- -- -- -- -- --
4. -- -- -- -- -- -- -- -- --
5. -- -- -- -- -- -- -- -- --
6. -- -- -- -- -- -- -- -- --
------ ------ ------ ------ ------ ------ ------ ------ ------
TOTAL PROFESSIONALS (MOR-1) -- -- -- -- -- -- -- -- --
====== ====== ====== ====== ====== ====== ====== ====== ======
</Table>
MOR-9
UNITED STATES BANKRUPTCY COURT
SOUTHERN DISTRICT OF TEXAS
HOUSTON DIVISION
<Table>
CASE NAME: GOLD MEDAL HOMES, INC. PETITION DATE: JANUARY 11, 2001
CASE NUMBER: 01-80027-G3-11
MONTHLY OPERATING REPORT SUMMARY FOR MONTH SEPTEMBER YEAR 2001
--------- ----
MONTH JANUARY FEBRUARY MARCH APRIL MAY JUNE
----- ------ ---------- ------ ------- ------ --------
REVENUES (MOR-6) -- -- -- -- -- --
INCOME BEFORE INT, DEPREC./TAX (MOR-6) -- (2,636,288) (3,642) 106,234 39,573 (149,703)
NET INCOME (LOSS) (MOR-6) (3,308) (2,649,927) (3,642) 106,234 39,573 (149,703)
PAYMENTS TO INSIDERS (MOR-9) -- -- -- -- -- --
PAYMENTS TO PROFESSIONALS (MOR-9) -- -- -- -- -- --
TOTAL DISBURSEMENTS (MOR-8) 5,782 -- 30 5,131 -- --
<Caption>
MONTH JUNE JULY AUGUST SEPTEMBER
----- -------- ---------- ------ ---------
REVENUES (MOR-6) -- -- -- --
INCOME BEFORE INT, DEPREC./TAX (MOR-6) (149,703) 106,395 (5,131) (250)
NET INCOME (LOSS) (MOR-6) (149,703) 106,395 (5,131) (4,500)
PAYMENTS TO INSIDERS (MOR-9) -- -- -- --
PAYMENTS TO PROFESSIONALS (MOR-9) -- -- -- --
TOTAL DISBURSEMENTS (MOR-8) -- -- -- --
</Table>
*** The ORIGINAL of this document MUST BE FILED with the United States
Bankruptcy Court and a COPY MUST BE SENT to the United States Trustee ***
- --------------------------------------------------------------------------------
REQUIRED INSURANCE MAINTAINED
AS OF SIGNATURE DATE
<Table>
<Caption>
EXP.
DATE
----
CASUALTY YES (X) NO ( ) 06/30/02
LIABILITY YES (X) NO ( ) 06/30/02
VEHICLE YES (X) NO ( ) 06/30/02
WORKER'S YES (X) NO ( ) 03/27/02
OTHER - DIRECTOR/OFFICER YES (X) NO ( ) 01/23/02
</Table>
- --------------------------------------------------------------------------------
ATTORNEY NAME:
FIRM: Floyd, Isgur, Rios & Warlich, P. C.
Address: 700 Louisiana, Suite 4600
Address:
City, State, ZIP: Houston, TX 77002-2732
Telephone: 713-222-1470
Fax: 713-222-1475
- --------------------------------------------------------------------------------
<Table>
CIRCLE ONE
Are all accounts receivable being collected within terms? YES NO
Are all posted-petition liabilities, including taxes,
being paid within terms? YES NO
Have any pre-petition liabilities been paid? YES NO
If so, describe. PURSUANT TO COURT ORDER AUTHORIZING PAYMENTS OF
PRE-PETITION WAGES, SALARIES, COMMISSIONS AND COMPENSATION
SIGNED JANUARY 11, 2001.
Are all funds received being deposited into DIP bank accounts? YES NO
Were any assets disposed of outside the normal course of business? YES NO
If so, describe. PROPERTY, PLANT & EQUIPMENT AND OTHER ASSET SALES
MADE PURSUANT TO VARIOUS COURT ORDERS AUTHORIZING SUCH ASSET SALES.
Are all U.S. Trustee Quarterly Fee Payments current? YES NO
What is the status of your Plan of Reorganization? PLAN OF
REORGANIZATION CONFIRMED BY COURT ON AUGUST 14, 2001.
EFFECTIVE DATE OF REORGANIZATION - OCTOBER 3, 2001.
</Table>
I certify under penalty of perjury that the
following complete Monthly Operating Report
(MOR), consisting of MOR-1 through MOR-9 plus
attachments, is true and correct.
SIGNED /s/ CRAIG A. REYNOLDS
------------------------------------
TITLE Vice President of Finance
-------------------------------------
MOR-1
CASE NAME: GOLD MEDAL HOMES, INC. CASE NUMBER: 01-80027-G3-11
COMPARATIVE BALANCE SHEETS
<Table>
<Caption>
MONTH MONTH MONTH MONTH MONTH
ASSETS FILING DATE* JANUARY FEBRUARY MARCH APRIL MAY
------ ------------ ------- -------- ----- ----- ---
CURRENT ASSETS
Cash 5,782 -- -- 23,970 18,839 18,839
Accounts Receivable, Net -- -- -- -- 5,131 5,131
Inventory: Lower of Cost or Market -- -- -- -- -- --
Prepaid Expenses 13,674 13,546 -- -- -- --
Investments -- -- -- -- -- --
Other 7,725 7,537 -- -- -- --
--------- --------- --------- ------- ------- -------
TOTAL CURRENT ASSETS 27,181 21,083 -- 23,970 23,970 23,970
========= ========= ========= ======= ======= =======
PROPERTY, PLANT&EQUIP, @ COST 2,454,613 2,454,613 2,454,613 -- -- --
Less Accumulated Depreciation 1,066,501 1,075,903 1,089,542 -- -- --
Less Impairment of Assets 865,071 -- -- --
--------- --------- --------- ------- ------- -------
Net Book Value of PP & E 1,388,111 1,378,710 500,000 -- -- --
========= ========= ========= ======= ======= =======
OTHER ASSETS:
1. Tax Deposits -- -- -- -- -- --
2. Investments in Subs -- -- -- -- -- --
3. Deposits -- -- -- -- -- --
4. Interests in Insurance Policies -- -- -- -- -- --
5. Note Receivable -- -- -- -- -- --
6. Intercompany 1,537,952 1,577,929 -- -- 100,031 100,031
7. Other (36,117) (36,117) (36,117) (36,117) (36,117) --
--------- --------- --------- ------- ------- -------
TOTAL ASSETS 2,917,127 2,941,604 463,883 (12,148) 87,883 124,000
========= ========= ========= ======= ======= =======
<Caption>
MONTH MONTH MONTH MONTH
ASSETS JUNE JULY AUGUST SEPTEMBER
------ ------ ------ ------ ---------
CURRENT ASSETS
Cash 18,839 72,901 72,901 22,901
Accounts Receivable, Net 5,131 5,131 -- --
Inventory: Lower of Cost or Market -- -- -- --
Prepaid Expenses -- -- -- --
Investments -- -- -- --
Other -- -- -- --
------ ------ ------ ------
TOTAL CURRENT ASSETS 23,970 78,032 72,901 22,901
====== ====== ====== ======
PROPERTY, PLANT&EQUIP, @ COST -- -- -- --
Less Accumulated Depreciation -- -- -- --
Less Impairment of Assets -- -- -- --
------ ------ ------ ------
Net Book Value of PP & E -- -- -- --
====== ====== ====== ======
OTHER ASSETS:
1. Tax Deposits -- -- -- --
2. Investments in Subs -- -- -- --
3. Deposits -- -- -- --
4. Interests in Insurance Policies -- -- -- --
5. Note Receivable -- -- -- --
6. Intercompany -- 2,660 -- --
7. Other -- -- -- --
------ ------ ------ ------
TOTAL ASSETS 23,970 80,693 72,901 22,901
====== ====== ====== ======
</Table>
* Per Schedules and Statement of Affairs
MOR-2
CASE NAME: GOLD MEDAL HOMES, INC. CASE NUMBER: 01-80027-G3-11
COMPARATIVE BALANCE SHEETS
<Table>
<Caption>
LIABILITIES & OWNER'S MONTH MONTH MONTH MONTH MONTH MONTH
EQUITY FILING DATE * JANUARY FEBRUARY MARCH APRIL MAY
--------------------- ------------- --------- ---------- ---------- ---------- ----------
LIABILITIES:
POST-PETITION LIABILITIES (MOR-4) 31,945 1,945 6,203 -- --
--------- ---------- ---------- ---------- ----------
PRE-PETITION LIABILITIES:
Notes Payable - Secured 484,938 486,560 486,560 3,456 3,456 --
Priority Debt 5,782 -- -- -- -- --
Federal Income Tax -- -- -- -- -- --
FICA/Withholding -- -- -- -- -- --
Unsecured Debt 900 900 -- -- -- --
Intercompany -- -- 203,106 209,564 209,564 209,564
--------- --------- ---------- ---------- ---------- ----------
TOTAL PRE-PETITION LIABILITIES 491,620 487,460 689,666 213,020 213,020 209,564
--------- --------- ---------- ---------- ---------- ----------
TOTAL LIABILITIES 491,620 519,405 691,611 219,223 213,020 209,564
========= ========= ========== ========== ========== ==========
OWNER'S EQUITY (DEFICIT):
Preferred Stock -- --
Common Stock 1,400,000 1,400,000 1,400,000 1,400,000 1,400,000 1,400,000
ADDITIONAL PAID-IN CAPITAL -- -- -- -- -- --
PARTNERS DISTRIBUTIONS (158,719) (158,719) (158,719) (158,719) (158,719) (158,719)
RETAINED EARNINGS: Filing Date 1,184,226 1,184,226 1,184,226 1,184,226 1,184,226 1,184,226
RETAINED EARNINGS: Post Filing Date -- (3,308) (2,653,235) (2,656,877) (2,550,643) (2,511,070)
--------- --------- ---------- ---------- ---------- ----------
TOTAL OWNER'S EQUITY (NET WORTH) 2,425,507 2,422,199 (227,728) (231,370) (125,136) (85,563)
--------- --------- ---------- --------- --------- ----------
TOTAL LIABILITIES &
OWNER'S EQUITY 2,917,127 2,941,604 463,883 (12,148) 87,883 124,000
========= ========= ========== ========== ========= ==========
<Caption>
LIABILITIES & OWNER'S MONTH MONTH MONTH MONTH
EQUITY JUNE JULY AUGUST SEPTEMBER
--------------------- ---------- ---------- ----------- -----------
LIABILITIES:
POST-PETITION LIABILITIES (MOR-4) 49,672 -- (2,661) (48,160)
---------- ---------- ---------- ----------
PRE-PETITION LIABILITIES:
Notes Payable - Secured -- -- -- --
Priority Debt -- -- -- --
Federal Income Tax -- -- -- --
FICA/Withholding -- -- -- --
Unsecured Debt -- -- -- --
Intercompany 209,565 209,565 209,565 209,565
---------- ---------- ---------- ----------
TOTAL PRE-PETITION LIABILITIES 209,565 209,565 209,565 209,565
---------- ---------- ---------- ----------
TOTAL LIABILITIES 259,237 209,565 206,904 161,406
========== ========== ========== ==========
OWNER'S EQUITY (DEFICIT):
Preferred Stock
Common Stock 1,400,000 1,400,000 1,400,000 1,400,000
ADDITIONAL PAID-IN CAPITAL -- -- -- --
PARTNERS DISTRIBUTIONS (158,719) (158,719) (158,719) (158,719)
RETAINED EARNINGS: Filing Date 1,184,226 1,184,226 1,184,226 1,184,226
RETAINED EARNINGS: Post Filing Date (2,660,773) (2,554,378) (2,554,378) (2,554,378)
---------- ---------- ---------- ----------
TOTAL OWNER'S EQUITY (NET WORTH) (235,267) (128,872) (134,003) (138,503)
---------- ---------- ---------- ----------
TOTAL LIABILITIES &
OWNER'S EQUITY 23,970 80,693 72,901 22,901
========== ========== ========== ==========
</Table>
* Per Schedules and Statement of Affairs
MOR-3
CASE NAME: GOLD MEDAL HOMES, INC. CASE NUMBER: 01-80027-G3-11
SCHEDULE OF POST-PETITION LIABILITIES
<Table>
<Caption>
MONTH MONTH MONTH MONTH MONTH
JANUARY FEBRUARY MARCH APRIL MAY
------- -------- ------ ------ -----
TRADE ACCOUNTS PAYABLE -- -- -- -- --
------- ------ ------ ------ -----
TAX PAYABLE
Federal Payroll Taxes -- -- -- -- --
State Payroll & Sales -- -- -- -- --
Ad Valorem Taxes -- -- -- -- --
Other Taxes -- -- -- -- --
------ ------ ------ ------ -----
TOTAL TAXES PAYABLE -- -- -- -- --
====== ====== ====== ====== =====
SECURED DEBT POST-PETITION -- -- -- -- --
ACCRUED INTEREST PAYABLE -- -- -- -- --
* ACCRUED PROFESSIONAL FEES -- -- -- -- --
OTHER ACCRUED LIABILITIES:
1. Intercompany 31,945 1,945 6,203 --
2. -- -- -- -- --
3. -- -- -- -- --
------ ------ ------ ------ -----
TOTAL POST-PETITION LIABILITIES (MOR-3) 31,945 1,945 6,203 -- --
====== ====== ====== ====== =====
<Caption>
MONTH MONTH MONTH MONTH
JUNE JULY AUGUST SEPTEMBER
------ ------ ------- ---------
TRADE ACCOUNTS PAYABLE -- -- -- --
------ ---- ------- ---------
TAX PAYABLE
Federal Payroll Taxes -- -- -- --
State Payroll & Sales -- -- -- --
Ad Valorem Taxes -- -- -- --
Other Taxes -- -- -- --
------ ---- ------- ---------
TOTAL TAXES PAYABLE -- -- -- --
====== ====== ======= =========
SECURED DEBT POST-PETITION -- -- -- --
ACCRUED INTEREST PAYABLE -- -- -- --
* ACCRUED PROFESSIONAL FEES -- -- -- --
OTHER ACCRUED LIABILITIES:
1. Intercompany 49,672 (2,660) (2,660) (48,160)
2. -- -- -- --
3. -- -- -- --
------ ------ ------- ---------
TOTAL POST-PETITION LIABILITIES (MOR-3) 49,672 (2,660) (2,660) (48,160)
====== ====== ======= =========
</Table>
* Payment Requires Court Approval.
MOR-4
CASE NAME: GOLD MEDAL HOMES, INC. CASE NUMBER: 01-80027-G3-11
AGING OF POST-PETITION LIABILITIES
MONTH OF SEPTEMBER 2001
<Table>
<Caption>
AD-VALOREM,
DAYS TOTAL TRADE ACCTS FED TAXES STATE TAXES OTHER TAXES OTHER
---- -------- ----------- --------- ----------- ------------ -------
0-30 (48,160) -- -- -- -- (48,160)
31-60 --
61-90 --
91 + --
TOTAL (48,160) -- -- -- -- (48,160)
</Table>
AGING OF ACCOUNTS RECEIVABLE
<Table>
<Caption>
MONTH JANUARY FEBRUARY MARCH APRIL MAY
----- ------- -------- ----- ----- ---
0-30 DAYS -- -- -- 5,131 --
31-60 DAYS -- -- -- 5,131
61-90 DAYS -- -- --
91 + DAYS -- -- --
TOTAL -- -- -- 5,131 5,131
<Caption>
MONTH JUNE JULY AUGUST SEPTEMBER
----- ---- ---- ------ ---------
0-30 DAYS -- -- -- --
31-60 DAYS -- -- -- --
61-90 DAYS 5,131 -- --
91 + DAYS -- 5,131 -- --
TOTAL 5,131 5,131 -- --
</Table>
MOR-5
CASE NAME: GOLD MEDAL HOMES, INC. CASE NUMBER: 01-80027-G3-11
STATEMENT OF INCOME (LOSS)
<Table>
<Caption>
MONTH JANUARY FEBRUARY MARCH APRIL MAY
----- ------- ---------- ------ ------- ------
REVENUES (MOR-1) -- -- -- -- --
TOTAL COST OF REVENUES -- -- -- -- --
GROSS PROFIT -- -- -- -- --
OPERATING EXPENSES:
Selling & Marketing -- -- -- -- --
General & Administrative -- -- 30 -- --
Insiders Compensation -- -- -- -- --
Professional Fees -- -- -- -- --
Impairment of Assets -- 2,636,288 3,612 -- (39,573)
Other (attach list) -- -- -- (106,234) --
------ ---------- ------ -------- -------
TOTAL OPERATING EXPENSES -- 2,636,288 3,642 (106,234) (39,573)
====== ========== ====== ======== =======
INCOME BEFORE INT, DEPR/TAX (MOR-1) -- (2,636,288) (3,642) 106,234 39,573
====== ========== ====== ======== =======
INTEREST EXPENSE 3,308 -- -- -- --
DEPRECIATION -- 13,639 -- -- --
OTHER (INCOME) EXPENSE * -- -- -- -- --
OTHER ITEMS ** -- -- -- -- --
------ ---------- ------ -------- -------
TOTAL INT, DEPR & OTHER ITEMS 3,308 13,639 -- -- --
------ ---------- ------ -------- -------
NET INCOME BEFORE TAXES (3,308) (2,649,927) (3,642) 106,234 39,573
====== ========== ====== ======== =======
FEDERAL INCOME TAXES --
------ ---------- ------ -------- -------
NET INCOME (LOSS) (MOR-1) (3,308) (2,649,927) (3,642) 106,234 39,573
====== ========== ====== ======== =======
<Caption>
MONTH JUNE JULY AUGUST SEPTEMBER FILING TO DATE
----- -------- -------- ------- --------- --------------
REVENUES (MOR-1) -- -- -- -- --
TOTAL COST OF REVENUES -- -- -- -- --
GROSS PROFIT -- -- -- -- --
OPERATING EXPENSES:
Selling & Marketing -- -- -- -- --
General & Administrative -- -- -- -- 30
Insiders Compensation -- -- -- -- --
Professional Fees -- -- -- -- --
Impairment of Assets 149,703 (106,395) 5,131 250 2,649,016
Other (attach list) -- -- -- -- (106,234)
-------- -------- ------ --------- ----------
TOTAL OPERATING EXPENSES 149,703 (106,395) 5,131 250 2,542,812
======== ======== ====== ========= ==========
INCOME BEFORE INT, DEPR/TAX (MOR-1) (149,703) 106,395 (5,131) (250) (2,542,812)
INTEREST EXPENSE -- -- -- -- 3,308
DEPRECIATION -- -- -- -- 13,639
OTHER (INCOME) EXPENSE * -- -- -- 4,250 4,250
OTHER ITEMS ** -- -- -- -- --
-------- -------- ------ --------- ----------
TOTAL INT, DEPR & OTHER ITEMS -- -- -- 4,250 21,197
-------- -------- ------ --------- ----------
NET INCOME BEFORE TAXES (149,703) 106,395 (5,131) (4,500) (2,564,009)
======== ======== ====== ========= ==========
FEDERAL INCOME TAXES --
-------- -------- ------ --------- ----------
NET INCOME (LOSS) (MOR-1) (149,703) 106,395 (5,131) (4,500) (2,564,009)
======== ======== ====== ========= ==========
</Table>
Accrual Accounting Required, Otherwise Footnote With Explanation
* Footnote Mandatory
** Unusual and/or infrequent item(s) outside the ordinary course of business;
requires footnote
MOR-6
CASE NAME: GOLD MEDAL HOMES, INC. CASE NUMBER: 01-80027-G3-11
<Table>
<Caption>
MONTH MONTH MONTH MONTH MONTH
CASH RECEIPTS AND DISBURSEMENTS JANUARY FEBRUARY MARCH APRIL MAY
- ------------------------------- ------- -------- ------ ------ ------
1. CASH - BEGINNING OF MONTH 5,782 -- -- 23,970 18,839
RECEIPTS:
2. CASH SALES -- -- -- -- --
3. COLLECTION OF ACCOUNTS RECEIVABLE -- -- -- -- --
4. LOANS & ADVANCES (ATTACH LIST) -- -- -- -- --
5. SALE OF ASSETS -- -- 14,683 -- --
6. INTERCOMPANY -- -- 9,317 -- --
----- ----- ------ ------ ------
TOTAL RECEIPTS -- -- 24,000 -- --
====== ===== ====== ====== ======
(WITHDRAWAL) CONTRIBUTION BY INDIVIDUAL DEBTOR MFR-2*
DISBURSEMENTS:
7. NET PAYROLL 5,782 -- -- -- --
8. PAYROLL TAXES PAID -- -- -- -- --
9. SALES, USE & OTHER TAXES PAID -- -- -- -- --
10. SECURED / RENTAL / LEASES -- -- -- -- --
11. UTILITIES -- -- -- -- --
12. INSURANCE -- -- -- -- --
13. INVENTORY PURCHASES -- -- -- -- --
14. VEHICLE EXPENSES -- -- -- -- --
15. TRAVEL ENTERTAINMENT -- -- -- -- --
16. REPAIRS, MAINTENANCE & SUPPLIES -- -- -- -- --
17. ADMINISTRATIVE & SELLING -- -- 30 -- --
18. OTHER (ATTACH LIST) -- -- -- 5,131 --
----- ----- ------ ------ ------
TOTAL DISBURSEMENTS FROM OPERATIONS 5,782 -- 30 5,131 --
====== ===== ====== ====== ======
19. PROFESSIONAL FEES -- -- -- -- --
20. U.S. TRUSTEE FEES -- -- -- -- --
21. OTHER REORGANIZATION EXPENSES (ATTACH LIST) -- -- -- -- --
----- ----- ------ ------ ------
TOTAL DISBURSEMENTS 5,782 -- 30 5,131 --
====== ===== ====== ====== ======
22. NET CASH FLOW (5,782) -- 23,970 (5,131) --
------ ----- ------ ------ ------
23. CASH - END OF MONTH (MOR-2) -- -- 23,970 18,839 18,839
====== ===== ====== ====== ======
<Caption>
MONTH MONTH MONTH MONTH FILING TO
CASH RECEIPTS AND DISBURSEMENTS JUNE JULY AUGUST SEPTEMBER DATE
- ------------------------------- ------ ------ ------ --------- ---------
1. CASH - BEGINNING OF MONTH 18,839 18,839 72,901 72,901 18,839
RECEIPTS:
2. CASH SALES -- -- -- -- --
3. COLLECTION OF ACCOUNTS RECEIVABLE -- -- -- -- --
4. LOANS & ADVANCES (ATTACH LIST) -- -- -- -- --
5. SALE OF ASSETS -- -- -- -- 14,683
6. INTERCOMPANY -- 54,062 -- -- 63,379
------ ------ ------ ------- ------
TOTAL RECEIPTS -- 54,062 -- -- 78,062
====== ====== ====== ======= ======
(WITHDRAWAL) CONTRIBUTION BY INDIVIDUAL DEBTOR MFR-2*
DISBURSEMENTS:
7. NET PAYROLL -- -- -- -- 5,782
8. PAYROLL TAXES PAID -- -- -- -- --
9. SALES, USE & OTHER TAXES PAID -- -- -- -- --
10. SECURED / RENTAL / LEASES -- -- -- -- --
11. UTILITIES -- -- -- -- --
12. INSURANCE -- -- -- -- --
13. INVENTORY PURCHASES -- -- -- -- --
14. VEHICLE EXPENSES -- -- -- -- --
15. TRAVEL ENTERTAINMENT -- -- -- -- --
16. REPAIRS, MAINTENANCE & SUPPLIES -- -- -- -- --
17. ADMINISTRATIVE & SELLING -- -- -- -- 30
18. OTHER (ATTACH LIST) -- -- -- 50,000 55,131
------ ------ ------ ------- ------
TOTAL DISBURSEMENTS FROM OPERATIONS -- -- -- 50,000 60,942
====== ====== ====== ======= ======
19. PROFESSIONAL FEES -- -- -- -- --
20. U.S. TRUSTEE FEES -- -- -- -- --
21. OTHER REORGANIZATION EXPENSES (ATTACH LIST) -- -- -- -- --
------ ------ ------ ------- ------
TOTAL DISBURSEMENTS -- -- -- 50,000 60,942
====== ====== ====== ======= ======
22. NET CASH FLOW -- 54,062 -- (50,000) 17,120
------ ------ ------ ------- ------
23. CASH - END OF MONTH (MOR-2) 18,839 72,901 72,901 22,901 35,959
====== ====== ====== ======= ======
</Table>
* applies to Individual debtor's only.
MOR-7
CASE NAME: GOLD MEDAL HOMES, INC. CASE NUMBER: 01-80027-G3-11
CASH ACCOUNT RECONCILIATION
MONTH OF SEPTEMBER 2001
<Table>
<Caption>
BANK NAME Bank of America First Charter
- --------- --------------- -------------
ACCOUNT NUMBER # 3755500069
ACCOUNT TYPE OPERATING TOTAL
- ------------ --------- -----
BANK BALANCE 22,901 -- 22,901
DEPOSIT IN TRANSIT -- -- --
OUTSTANDING CHECKS -- -- --
-------- ------- ------- ------- --------
ADJUSTED BANK BALANCE 22,901 -- -- -- 22,901
======== ======= ======= ======= ========
BEGINNING CASH - PER BOOKS 72,901 -- 72,901
RECEIPTS -- -- --
TRANSFERS BETWEEN ACCOUNTS (50,000) -- (50,000)
(WITHDRAWAL) CONTRIBUTION - BY INDIVIDUAL DEBTOR MFR-2 -- -- --
CHECKS / OTHER DISBURSEMENTS -- -- --
-------- ------- ------- ------- --------
ENDING CASH - PER BOOKS 22,901 -- -- -- 22,901
======== ======= ======= ======= ========
</Table>
MOR-8
CASE NAME: GOLD MEDAL HOMES, INC. CASE NUMBER: 01-80027-G3-11
PAYMENTS TO INSIDERS AND PROFESSIONALS
OF THE TOTAL DISBURSEMENTS SHOWN FOR THE MONTH, LIST THE AMOUNT PAID TO INSIDERS
(AS DEFINED IN SECTION 101(30)(A)-(F) OF THE U. S. BANKRUPTCY CODE) AND THE
PROFESSIONALS. ALSO, FOR INSIDERS IDENTIFY THE TYPE OF COMPENSATION PAID (E.G.,
SALARY, COMMISSION, BONUS, ETC.) (ATTACH ADDITIONAL PAGES AS NECESSARY).
<Table>
<Caption>
MONTH MONTH MONTH MONTH MONTH
INSIDERS: NAME/POSITION/COMP TYPE JANUARY FEBRUARY MARCH APRIL MAY
- --------------------------------- ------- -------- ----- ----- ---
1. Dennis L. Jones/President -- -- -- -- --
2. Ronald Mccaslin/Vice President, Director -- -- -- -- --
3. Craig A. Reynolds/Secretary, Director -- -- -- -- --
4. Kristi E. Gross/Assistant Secretary -- -- -- -- --
5. Steve Purdy/Assistant Secretary -- -- -- -- --
6. -- -- -- -- --
----- ----- ----- ----- -----
TOTAL INSIDERS (MOR-1) -- -- -- -- --
===== ===== ===== ===== =====
<Caption>
MONTH MONTH MONTH MONTH
INSIDERS: NAME/POSITION/COMP TYPE JUNE JULY AUGUST SEPTEMBER
- --------------------------------- ---- ---- ------ ---------
1. Dennis L. Jones/President -- -- -- --
2. Ronald Mccaslin/Vice President, Director -- -- -- --
3. Craig A. Reynolds/Secretary, Director -- -- -- --
4. Kristi E. Gross/Assistant Secretary -- -- -- --
5. Steve Purdy/Assistant Secretary -- -- -- --
6. -- -- -- --
----- ----- ----- -----
TOTAL INSIDERS (MOR-1) -- -- -- --
===== ===== ===== =====
</Table>
<Table>
<Caption>
MONTH MONTH MONTH MONTH MONTH
PROFESSIONALS/NAME/ORDER DATE JANUARY FEBRUARY MARCH APRIL MAY
- ----------------------------- ------- -------- ----- ----- -----
1. -- -- -- -- --
2. -- -- -- -- --
3. -- -- -- -- --
4. -- -- -- -- --
5. -- -- -- -- --
6. -- -- -- -- --
----- ----- ----- ----- -----
TOTAL PROFESSIONALS (MOR-1) -- -- -- -- --
===== ===== ===== ===== =====
<Caption>
MONTH MONTH MONTH MONTH MONTH
PROFESSIONALS/NAME/ORDER DATE MAY JUNE JULY AUGUST SEPTEMBER
- ----------------------------- ----- ----- ----- ------ ---------
1. -- -- -- -- --
2. -- -- -- -- --
3. -- -- -- -- --
4. -- -- -- -- --
5. -- -- -- -- --
6. -- -- -- -- --
----- ----- ----- ----- -----
TOTAL PROFESSIONALS (MOR-1) -- -- -- -- --
===== ===== ===== ===== =====
</Table>
MOR-9
UNITED STATES BANKRUPTCY COURT
SOUTHERN DISTRICT OF TEXAS
HOUSTON DIVISION
<Table>
CASE NAME: GOLD MEDAL HOMES N.C., INC. PETITION DATE: JANUARY 11, 2001
CASE NUMBER: 01-80026-G3-11
MONTHLY OPERATING REPORT SUMMARY FOR MONTH SEPTEMBER YEAR 2001
--------- ----
MONTH JANUARY FEBRUARY MARCH APRIL MAY
----- ---------- ---------- ---------- ---------- ----------
REVENUES (MOR-6) 635,470 714,317 18,667 -- --
INCOME BEFORE INT, DEPREC./TAX (MOR-6) 62,900 (3,583,964) (320,572) (20,756) 2,835,805
NET INCOME (LOSS) (MOR-6) 32,798 (3,583,964) (320,572) (20,756) 2,835,805
PAYMENTS TO INSIDERS (MOR-9) -- -- -- -- --
PAYMENTS TO PROFESSIONALS (MOR-9) -- -- -- -- --
TOTAL DISBURSEMENTS (MOR-8) 42,226 43,565 14,409 68,297 --
<Caption>
MONTH JUNE JULY AUGUST SEPTEMBER
----- ---------- ---------- ---------- ----------
REVENUES (MOR-6) -- -- -- --
INCOME BEFORE INT, DEPREC./TAX (MOR-6) 270,838 (116,560) (55,086) (23,195)
NET INCOME (LOSS) (MOR-6) 270,838 (116,560) (47,586) (23,195)
PAYMENTS TO INSIDERS (MOR-9) -- -- -- --
PAYMENTS TO PROFESSIONALS (MOR-9) -- -- -- --
TOTAL DISBURSEMENTS (MOR-8) -- 81 11 --
</Table>
*** The original of this document MUST BE FILED with the United States
Bankruptcy Court and a COPY MUST BE SENT to the United States Trustee ***
- --------------------------------------------------------------------------------
REQUIRED INSURANCE MAINTAINED
AS OF SIGNATURE DATE
<Table>
<Caption>
EXP.
DATE
----
CASUALTY YES (X) NO ( ) 06/30/02
LIABILITY YES (X) NO ( ) 06/30/02
VEHICLE YES (X) NO ( ) 06/30/02
WORKER'S YES (X) NO ( ) 03/27/02
OTHER - DIRECTOR/OFFICER YES (X) NO ( ) 01/23/02
</Table>
- --------------------------------------------------------------------------------
ATTORNEY NAME:
FIRM: Floyd, Isgur, Rios & Warlich, P. C.
Address: 700 Louisiana, Suite 4600
Address:
City, State, ZIP: Houston, TX 77002-2732
Telephone: 713-222-1470
Fax: 713-222-1475
- --------------------------------------------------------------------------------
<Table>
<Caption>
CIRCLE ONE
Are all accounts receivable being collected within terms? YES NO
Are all posted-petition liabilities, including taxes,
being paid within terms? YES NO
Have any pre-petition liabilities been paid? YES NO
If so, describe. PURSUANT TO COURT ORDER AUTHORIZING
PAYMENTS OF PRE-PETITION WAGES, SALARIES, COMMISSIONS AND
COMPENSATION SIGNED JANUARY 11, 2001.
Are all funds received being deposited into DIP bank accounts? YES NO
Were any assets disposed of outside the normal course of business? YES NO
If so, describe. PROPERTY, PLANT & EQUIPMENT AND OTHER ASSET
SALES MADE PURSUANT TO VARIOUS COURT ORDERS AUTHORIZING SUCH
ASSET SALES.
Are all U.S. Trustee Quarterly Fee Payments current? YES NO
What is the status of your Plan of Reorganization? PLAN OF REORGANIZATION
CONFIRMED BY COURT ON AUGUST 14, 2001. EFFECTIVE DATE OF REORGANIZATION -
OCTOBER 3, 2001.
</Table>
I certify under penalty of perjury that the
following complete Monthly Operating Report
(MOR), consisting of MOR-1 through MOR-9
plus attachments, is true and correct.
SIGNED /s/ CRAIG A. REYNOLDS
-------------------------------------
TITLE Vice President of Finance
-------------------------------------
MOR-1
CASE NAME: GOLD MEDAL HOMES N.C., INC. CASE NUMBER: 01-80026-G3-11
COMPARATIVE BALANCE SHEETS
<Table>
<Caption>
MONTH MONTH MONTH MONTH MONTH
ASSETS FILING DATE* JANUARY FEBRUARY MARCH APRIL MAY
------ ------------ ---------- ---------- ---------- ---------- ----------
CURRENT ASSETS
Cash 197,857 145,342 361,331 1,088,175 1,017,567 1,020,347
Accounts Receivable, Net 1,062,815 1,520,628 543,051 -- 55,075 55,075
Inventory: Lower of Cost or Market 2,420,028 2,189,864 -- -- -- --
Prepaid Expenses 44,153 49,866 -- -- -- --
Investments -- -- -- -- -- --
Other 631,491 621,196 524,292 -- -- --
---------- ---------- ---------- ---------- ---------- ----------
TOTAL CURRENT ASSETS 4,356,345 4,526,895 1,428,674 1,088,175 1,072,642 1,075,422
========== ========== ========== ========== ========== ==========
PROPERTY, PLANT&EQUIP, @ COST 7,900,109 7,900,109 7,900,109 -- -- --
Less Accumulated Depreciation 2,072,313 2,121,787 2,121,787 -- -- --
Less Impairment of Assets 898,323 -- -- --
Net Book Value of PP & E 5,827,796 5,778,323 4,880,000 -- -- --
OTHER ASSETS:
1. Tax Deposits -- -- -- -- -- --
2. Investments in Subs -- -- -- -- -- --
3. Deposits -- -- -- -- -- --
4. Interests in Insurance Policies -- -- -- -- -- --
5. Note Receivable -- -- -- -- -- --
6. Intercompany -- -- 165,722 69,446 50,837 50,337
---------- ---------- ---------- ---------- ---------- ----------
TOTAL ASSETS 10,184,141 10,305,217 6,474,395 1,157,622 1,123,479 1,125,759
========== ========== ========== ========== ========== ==========
<Caption>
MONTH MONTH MONTH MONTH
ASSETS JUNE JULY AUGUST SEPTEMBER
------ ---------- ---------- ---------- ----------
CURRENT ASSETS
Cash 1,020,284 1,237,706 1,237,695 1,261,140
Accounts Receivable, Net 55,075 55,075 -- --
Inventory: Lower of Cost or Market
Prepaid Expenses
Investments
Other
---------- ---------- ---------- ----------
TOTAL CURRENT ASSETS 1,075,359 1,292,781 1,237,695 1,261,140
========== ========== ========== ==========
PROPERTY, PLANT&EQUIP, @ COST -- -- -- --
Less Accumulated Depreciation -- -- -- --
Less Impairment of Assets -- -- -- --
Net Book Value of PP & E -- -- -- --
OTHER ASSETS:
1. Tax Deposits -- -- -- --
2. Investments in Subs -- -- -- --
3. Deposits -- -- -- --
4. Interests in Insurance Policies -- -- -- --
5. Note Receivable -- -- -- --
6. Intercompany 321,238 -- (5,244) (5,494)
---------- ---------- ---------- ----------
TOTAL ASSETS 1,396,597 1,292,781 1,232,451 1,255,646
========== ========== ========== ==========
</Table>
* Per Schedules and Statement of Affairs
MOR-2
CASE NAME: GOLD MEDAL HOMES N.C., INC. CASE NUMBER: 01-80026-G3-11
COMPARATIVE BALANCE SHEETS
<Table>
<Caption>
LIABILITIES & OWNER'S MONTH MONTH MONTH MONTH MONTH
EQUITY FILING DATE* JANUARY FEBRUARY MARCH APRIL MAY
- --------------------- ----------- ----------- ----------- ----------- ----------- -----------
LIABILITIES:
POST-PETITION LIABILITIES (MOR-4) 192,054 102,983 99,573 40,027 --
----------- ----------- ----------- ----------- -----------
PRE-PETITION LIABILITIES:
Notes Payable - Secured 4,909,217 4,919,906 4,919,906 39,906 39,906 --
Priority Debt 90,755 94,474 107,026 30,286 30,286 --
Federal Income Tax 1,442,612 1,442,612 1,442,612 1,442,612 1,442,612 --
FICA/Withholding -- -- -- -- -- --
Unsecured Debt 2,865,449 2,816,678 2,828,262 2,767,695 2,767,695 1,487,001
Intercompany 4,320,966 4,317,149 4,102,428 4,094,147 4,140,307 4,140,307
Other -- -- -- -- -- --
----------- ----------- ----------- ----------- ----------- -----------
TOTAL PRE-PETITION LIABILITIES 13,628,999 13,590,820 13,400,236 8,374,646 8,420,806 5,627,308
----------- ----------- ----------- ----------- ----------- -----------
TOTAL LIABILITIES 13,628,999 13,782,874 13,503,218 8,474,219 8,460,833 5,627,308
=========== =========== =========== =========== =========== ===========
OWNER'S EQUITY (DEFICIT):
Preferred Stock -- --
Common Stock 500,000 500,000 500,000 500,000 500,000 500,000
ADDITIONAL PAID-IN CAPITAL -- -- -- -- -- --
RETAINED EARNINGS: Filing Date (3,944,859) (3,944,859) (3,944,859) (3,944,859) (3,944,859) (3,944,859)
RETAINED EARNINGS: Post Filing Date -- (32,798) (3,583,964) (3,871,739) (3,892,495) (1,056,690)
----------- ----------- ----------- ----------- ----------- -----------
TOTAL OWNER'S EQUITY (NET WORTH) (3,444,859) (3,477,656) (7,028,823) (7,316,598) (7,337,353) (4,501,549)
----------- ----------- ----------- ----------- ----------- -----------
TOTAL LIABILITIES &
OWNER'S EQUITY 10,184,141 10,305,217 6,474,395 1,157,622 1,123,479 1,125,759
=========== =========== =========== =========== =========== ===========
<Caption>
LIABILITIES & OWNER'S MONTH MONTH MONTH MONTH
EQUITY JUNE JULY AUGUST SEPTEMBER
- --------------------- ----------- ----------- ----------- -----------
LIABILITIES:
POST-PETITION LIABILITIES (MOR-4) -- 12,744 -- --
----------- ----------- ----------- -----------
PRE-PETITION LIABILITIES:
Notes Payable - Secured -- -- -- --
Priority Debt -- -- -- --
Federal Income Tax -- -- -- --
FICA/Withholding -- -- -- --
Unsecured Debt 1,487,001 1,487,001 1,487,001 1,487,001
Intercompany 4,140,307 4,140,307 4,140,307 4,140,307
Other -- -- -- --
----------- ----------- ----------- -----------
TOTAL PRE-PETITION LIABILITIES 5,627,308 5,627,308 5,627,308 5,627,308
----------- ----------- ----------- -----------
TOTAL LIABILITIES 5,627,308 5,640,052 5,627,308 5,627,308
=========== =========== =========== ===========
OWNER'S EQUITY (DEFICIT):
Preferred Stock
Common Stock 500,000 500,000 500,000 500,000
ADDITIONAL PAID-IN CAPITAL -- -- -- --
RETAINED EARNINGS: Filing Date (3,944,859) (3,944,859) (3,944,859) (3,944,859)
RETAINED EARNINGS: Post Filing Date (785,852) (902,412) (902,412) (902,412)
----------- ----------- ----------- -----------
TOTAL OWNER'S EQUITY (NET WORTH) (4,230,711) (4,347,271) (4,394,857) (4,371,662)
----------- ----------- ----------- -----------
TOTAL LIABILITIES &
OWNER'S EQUITY 1,396,597 1,292,781 1,232,451 1,255,646
=========== =========== =========== ===========
</Table>
* Per Schedules and Statement of Affairs
MOR-3
CASE NAME: GOLD MEDAL HOMES N.C., INC. CASE NUMBER: 01-80026-G3-11
SCHEDULE OF POST-PETITION LIABILITIES
<Table>
<Caption>
MONTH MONTH MONTH MONTH MONTH
JANUARY FEBRUARY MARCH APRIL MAY
---------- ---------- ---------- ---------- ----------
TRADE ACCOUNTS PAYABLE 50,993 63,278 39,434 26,213 --
---------- ---------- ---------- ---------- ----------
TAX PAYABLE
Federal Payroll Taxes 16,242 38,460 46,325 -- --
State Payroll & Sales 2,139 14,022 -- -- --
Ad Valorem Taxes -- -- -- -- --
Other Taxes -- -- -- -- --
---------- ---------- ---------- ---------- ----------
TOTAL TAXES PAYABLE 18,381 52,482 46,325 -- --
========== ========== ========== ========== ==========
SECURED DEBT POST-PETITION -- -- -- -- --
ACCRUED INTEREST PAYABLE 10,689 10,689 10,689 10,689 --
* ACCRUED PROFESSIONAL FEES -- -- -- -- --
OTHER ACCRUED LIABILITIES:
1. 10 Year Warranty 1,125 3,125 3,125 3,125 --
2. Dealer Freight 4,942 (10,668) -- -- --
3. Commissions 2,680 (15,924) -- -- --
4. Intercompany 103,245 -- -- -- --
---------- ---------- ---------- ---------- ----------
TOTAL POST-PETITION LIABILITIES (MOR-3) 192,054 102,983 99,573 40,027 --
========== ========== ========== ========== ==========
<Caption>
MONTH MONTH MONTH MONTH
JUNE JULY AUGUST SEPTEMBER
---------- ---------- ---------- ----------
TRADE ACCOUNTS PAYABLE -- -- -- --
---------- ---------- ---------- ----------
TAX PAYABLE
Federal Payroll Taxes -- -- -- --
State Payroll & Sales -- -- -- --
Ad Valorem Taxes -- -- -- --
Other Taxes -- -- -- --
---------- ---------- ---------- ----------
TOTAL TAXES PAYABLE -- -- -- --
========== ========== ========== ==========
SECURED DEBT POST-PETITION -- -- -- --
ACCRUED INTEREST PAYABLE -- -- -- --
* ACCRUED PROFESSIONAL FEES -- -- -- --
OTHER ACCRUED LIABILITIES:
1. 10 Year Warranty -- -- -- --
2. Dealer Freight -- -- -- --
3. Commissions -- -- -- --
4. Intercompany -- 12,744 -- --
---------- ---------- ---------- ----------
TOTAL POST-PETITION LIABILITIES (MOR-3) -- 12,744 -- --
========== ========== ========== ==========
</Table>
* Payment Requires Court Approval
MOR-4
CASE NAME: GOLD MEDAL HOMES N.C., INC. CASE NUMBER: 01-80026-G3-11
AGING OF POST-PETITION LIABILITIES
MONTH OF SEPTEMBER 2001
<Table>
<Caption>
AD-VALOREM,
DAYS TOTAL TRADE ACCTS FED TAXES STATE TAXES OTHER TAXES OTHER
- ----------- ----------- ----------- ----------- ----------- ----------- -----------
0-30 -- -- -- -- -- --
31-60 --
61-90 --
91 + --
TOTAL -- -- -- -- -- --
</Table>
AGING OF ACCOUNTS RECEIVABLE
<Table>
<Caption>
MONTH JANUARY FEBRUARY MARCH APRIL MAY
- ---------- ---------- ---------- ---------- ---------- ----------
0-30 DAYS -- -- -- 55,075 --
31-60 DAYS -- -- -- -- 55,075
61-90 DAYS -- -- -- -- --
91 + DAYS 1,520,628 543,051 -- -- --
TOTAL 1,520,628 543,051 -- 55,075 55,075
<Caption>
MONTH JUNE JULY AUGUST SEPTEMBER
- ---------- ---------- ---------- ---------- ----------
0-30 DAYS -- -- -- --
31-60 DAYS -- -- -- --
61-90 DAYS 55,075 -- -- --
91 + DAYS -- 55,075 -- --
TOTAL 55,075 55,075 -- --
</Table>
MOR-5
CASE NAME: GOLD MEDAL HOMES N.C., INC. CASE NUMBER: 01-80026-G3-11
STATEMENT OF INCOME (LOSS)
<Table>
<Caption>
MONTH JANUARY FEBRUARY MARCH APRIL MAY
----- ---------- ---------- ---------- ---------- ----------
REVENUES (MOR-1) 635,470 714,317 18,667 -- --
TOTAL COST OF REVENUES 478,562 264,913 7,116 -- --
GROSS PROFIT 156,908 449,404 11,551 -- --
OPERATING EXPENSES:
Selling & Marketing 84,620 25,710 17,410 -- --
General & Administrative 9,388 17,366 34,889 (39,971) --
Insiders Compensation -- -- -- -- --
Professional Fees -- -- -- -- --
Impairment of Assets 3,990,292 279,824 -- (2,835,805)
Other (attach list) -- -- -- 60,727 --
---------- ---------- ---------- ---------- ----------
TOTAL OPERATING EXPENSES 94,008 4,033,368 332,123 20,756 (2,835,805)
========== ========== ========== ========== ==========
INCOME BEFORE INT, DEPR/TAX (MOR-1) 62,900 (3,583,964) (320,572) (20,756) 2,835,805
========== ========== ========== ========== ==========
INTEREST EXPENSE 21,378 -- -- -- --
DEPRECIATION 8,724 -- -- -- --
OTHER (INCOME) EXPENSE *
OTHER ITEMS **
---------- ---------- ---------- ---------- ----------
TOTAL INT, DEPR & OTHER ITEMS 30,102 -- -- -- --
---------- ---------- ---------- ---------- ----------
NET INCOME BEFORE TAXES 32,798 (3,583,964) (320,572) (20,756) 2,835,805
========== ========== ========== ========== ==========
FEDERAL INCOME TAXES -- -- -- -- --
---------- ---------- ---------- ---------- ----------
NET INCOME (LOSS) (MOR-1) 32,798 (3,583,964) (320,572) (20,756) 2,835,805
========== ========== ========== ========== ==========
<Caption>
MONTH JUNE JULY AUGUST SEPTEMBER FILING TO DATE
----- ---------- ---------- ---------- ---------- --------------
REVENUES (MOR-1) -- -- -- -- 1,368,453
TOTAL COST OF REVENUES -- -- -- -- 750,590
GROSS PROFIT -- -- -- -- 617,863
OPERATING EXPENSES:
Selling & Marketing -- -- -- -- 127,741
General & Administrative -- -- 11 -- 21,682
Insiders Compensation -- -- -- -- --
Professional Fees -- -- -- -- --
Impairment of Assets (270,838) 116,560 55,075 23,195 1,358,304
Other (attach list) 60,727
---------- ---------- ---------- ---------- ----------
TOTAL OPERATING EXPENSES (270,838) 116,560 55,086 23,195 1,568,454
========== ========== ========== ========== ==========
INCOME BEFORE INT, DEPR/TAX (MOR-1) 270,838 (116,560) (55,086) (23,195) (950,591)
========== ========== ========== ========== ==========
INTEREST EXPENSE -- -- -- -- 21,378
DEPRECIATION -- -- -- -- 8,724
OTHER (INCOME) EXPENSE * (7,500) -- (7,500)
OTHER ITEMS ** --
---------- ---------- ---------- ---------- ----------
TOTAL INT, DEPR & OTHER ITEMS -- -- (7,500) -- 22,602
---------- ---------- ---------- ---------- ----------
NET INCOME BEFORE TAXES 270,838 (116,560) (47,586) (23,195) (973,193)
========== ========== ========== ========== ==========
FEDERAL INCOME TAXES -- -- -- -- --
---------- ---------- ---------- ---------- ----------
NET INCOME (LOSS) (MOR-1) 270,838 (116,560) (47,586) (23,195) (973,193)
========== ========== ========== ========== ==========
</Table>
Accrual Accounting Required, Otherwise Footnote With Explanation
* Footnote Mandatory
** Unusual and/or Infrequent Item(s) Outside the Ordinary Course of Business;
Requires Footnote
MOR-6
CASE NAME: GOLD MEDAL HOMES N.C., INC. CASE NUMBER: 01-80026-G3-11
<Table>
<Caption>
MONTH MONTH MONTH MONTH MONTH
CASH RECEIPTS AND DISBURSEMENTS JANUARY FEBRUARY MARCH APRIL MAY
- ------------------------------- ---------- ---------- ---------- ---------- ----------
1. CASH - BEGINNING OF MONTH 197,857 145,342 361,331 1,088,176 1,017,567
RECEIPTS:
2. CASH SALES 99,863 768,687 318,887 -- 2,780
3. COLLECTION OF ACCOUNTS RECEIVABLE -- 163,023 -- -- --
4. LOANS & ADVANCES (attach list) -- -- -- --
5. SALE OF ASSETS -- -- -- --
6. INTERCOMPANY -- 422,367 -- --
---------- ---------- ---------- ---------- ----------
TOTAL RECEIPTS 99,863 931,710 741,254 -- 2,780
========== ========== ========== ========== ==========
(Withdrawal) Contribution by Individual Debtor MFR-2*
DISBURSEMENTS:
7. NET PAYROLL 42,413 -- -- --
8. PAYROLL TAXES PAID -- -- --
9. SALES, USE & OTHER TAXES PAID -- -- --
10. SECURED / RENTAL / LEASES -- -- --
11. UTILITIES -- -- --
12. INSURANCE -- -- --
13. INVENTORY PURCHASES -- -- 14,409 --
14. VEHICLE EXPENSES -- -- --
15. TRAVEL ENTERTAINMENT -- -- --
16. REPAIRS, MAINTENANCE & SUPPLIES -- -- --
17. ADMINISTRATIVE & SELLING 13 43,366 --
18. INTERCOMPANY 109,953 672,355 2,312 --
19. OTHER (ATTACH LIST) -- 68,297 --
---------- ---------- ---------- ---------- ----------
TOTAL DISBURSEMENTS FROM OPERATIONS 152,379 715,721 14,409 70,609 --
========== ========== ========== ========== ==========
20. PROFESSIONAL FEES --
21. U.S. TRUSTEE FEES --
22. OTHER REORGANIZATION EXPENSES (ATTACH LIST) --
---------- ---------- ---------- ---------- ----------
TOTAL DISBURSEMENTS 152,379 715,721 14,409 70,609 --
========== ========== ========== ========== ==========
23. NET CASH FLOW (52,516) 215,989 726,845 (70,609) 2,780
---------- ---------- ---------- ---------- ----------
24. CASH - END OF MONTH (MOR-2) 145,342 361,331 1,088,176 1,017,567 1,020,347
========== ========== ========== ========== ==========
<Caption>
MONTH MONTH MONTH MONTH FILING TO
CASH RECEIPTS AND DISBURSEMENTS JUNE JULY AUGUST SEPTEMBER DATE
- ------------------------------- ---------- ---------- ---------- ---------- ----------
1. CASH - BEGINNING OF MONTH 1,020,347 1,020,284 1,237,706 1,237,695 1,020,347
RECEIPTS:
2. CASH SALES -- -- -- --
3. COLLECTION OF ACCOUNTS RECEIVABLE -- -- -- --
4. LOANS & ADVANCES (attach list) -- -- -- --
5. SALE OF ASSETS -- -- -- --
6. INTERCOMPANY 217,503 -- -- 217,503
---------- ---------- ---------- ---------- ----------
TOTAL RECEIPTS -- 217,503 -- -- 217,503
========== ========== ========== ========== ==========
(Withdrawal) Contribution by Individual Debtor MFR-2*
DISBURSEMENTS:
7. NET PAYROLL -- -- -- --
8. PAYROLL TAXES PAID -- -- -- --
9. SALES, USE & OTHER TAXES PAID -- -- -- --
10. SECURED / RENTAL / LEASES -- -- -- --
11. UTILITIES -- -- -- --
12. INSURANCE -- -- -- --
13. INVENTORY PURCHASES -- -- -- --
14. VEHICLE EXPENSES -- -- -- --
15. TRAVEL ENTERTAINMENT -- -- -- --
16. REPAIRS, MAINTENANCE & SUPPLIES -- -- -- --
17. ADMINISTRATIVE & SELLING 63 81 11 -- 155
18. INTERCOMPANY -- -- -- --
19. OTHER (ATTACH LIST) -- -- -- --
---------- ---------- ---------- ---------- ----------
TOTAL DISBURSEMENTS FROM OPERATIONS 63 81 11 -- 155
========== ========== ========== ========== ==========
20. PROFESSIONAL FEES --
21. U.S. TRUSTEE FEES --
22. OTHER REORGANIZATION EXPENSES (ATTACH LIST) (23,445) (23,445)
---------- ---------- ---------- ---------- ----------
TOTAL DISBURSEMENTS 63 81 11 (23,445) (23,291)
========== ========== ========== ========== ==========
23. NET CASH FLOW (63) 217,422 (11) 23,445 240,793
---------- ---------- ---------- ---------- ----------
24. CASH - END OF MONTH (MOR-2) 1,020,284 1,237,706 1,237,695 1,261,140 1,261,140
========== ========== ========== ========== ==========
</Table>
* applies to Individual debtor's only.
MOR-7
CASE NAME: GOLD MEDAL HOMES N.C., INC. CASE NUMBER: 01-80026-G3-11
CASH ACCOUNT RECONCILIATION
MONTH OF SEPTEMBER 2001
<Table>
<Caption>
BANK NAME Bank of America BB&T BB&T First Union
- --------- --------------- --------------- --------------- ---------------
ACCOUNT NUMBER # 3755500302 # 5213163444 # 5213163444
ACCOUNT TYPE OPERATING PAYROLL OPERATING OPERATING
------------ ------------ ------------ ------------
BANK BALANCE 1,261,140 -- -- --
DEPOSIT IN TRANSIT -- -- -- --
OUTSTANDING CHECKS -- -- -- --
--------- --------- --------- ---------
ADJUSTED BANK BALANCE 1,261,140 -- -- --
========= ========= ========= =========
BEGINNING CASH - PER BOOKS 252,573 -- -- --
RECEIPTS -- -- -- --
TRANSFERS BETWEEN ACCOUNTS 1,008,567 -- -- --
(WITHDRAWAL) CONTRIBUTION - BY INDIVIDUAL DEBTOR MFR-2 -- -- -- --
CHECKS / OTHER DISBURSEMENTS -- -- -- --
--------- --------- --------- ---------
ENDING CASH - PER BOOKS 1,261,140 -- -- --
========= ========= ========= =========
<Caption>
BANK NAME Bank of America
- --------- ---------------
ACCOUNT NUMBER
ACCOUNT TYPE INVESTMENTS TOTAL
----------- ---------
BANK BALANCE -- 1,261,140
DEPOSIT IN TRANSIT -- --
OUTSTANDING CHECKS -- --
--------- ---------
ADJUSTED BANK BALANCE -- 1,261,140
========= =========
BEGINNING CASH - PER BOOKS 985,122 1,237,695
RECEIPTS -- --
TRANSFERS BETWEEN ACCOUNTS (985,122) 23,445
(WITHDRAWAL) CONTRIBUTION - BY INDIVIDUAL DEBTOR MFR-2 -- --
CHECKS / OTHER DISBURSEMENTS -- --
--------- ---------
ENDING CASH - PER BOOKS 0 1,261,140
========= =========
</Table>
MOR-8
CASE NAME: GOLD MEDAL HOMES N.C., INC. CASE NUMBER: 01-80026-G3-11
PAYMENTS TO INSIDERS AND PROFESSIONALS
OF THE TOTAL DISBURSEMENTS SHOWN FOR THE MONTH, LIST THE AMOUNT PAID TO INSIDERS
(AS DEFINED IN SECTION 101(30)(A)-(F) OF THE U. S. BANKRUPTCY CODE) AND THE
PROFESSIONALS. ALSO, FOR INSIDERS IDENTIFY THE TYPE OF COMPENSATION PAID (e.g.,
SALARY, COMMISSION, BONUS, ETC.) (ATTACH ADDITIONAL PAGES AS NECESSARY).
<Table>
<Caption>
MONTH MONTH MONTH MONTH MONTH
INSIDERS: NAME/POSITION/COMP TYPE JANUARY FEBRUARY MARCH APRIL MAY
--------------------------------- -------- -------- -------- -------- --------
1. Dennis L. Jones/President -- -- -- -- --
2. Ronald McCaslin/Vice President, Director -- -- -- -- --
3. Craig A. Reynolds/Secretary, Director -- -- -- -- --
4. Kristi E. Gross/Assistant Secretary -- -- -- -- --
5. Steve Purdy/Assistant Secretary -- -- -- -- --
6. -- -- -- -- --
TOTAL INSIDERS (MOR-1) -- -- -- -- --
<Caption>
MONTH MONTH MONTH MONTH
INSIDERS: NAME/POSITION/COMP TYPE JUNE JULY AUGUST SEPTEMBER
--------------------------------- -------- -------- -------- ---------
1. Dennis L. Jones/President -- -- -- --
2. Ronald McCaslin/Vice President, Director -- -- -- --
3. Craig A. Reynolds/Secretary, Director -- -- -- --
4. Kristi E. Gross/Assistant Secretary -- -- -- --
5. Steve Purdy/Assistant Secretary -- -- -- --
6. -- -- -- --
TOTAL INSIDERS (MOR-1) -- -- -- --
</Table>
<Table>
<Caption>
MONTH MONTH MONTH MONTH MONTH
PROFESSIONALS/NAME/ORDER DATE JANUARY FEBRUARY MARCH APRIL MAY
----------------------------- -------- -------- -------- -------- --------
1. -- -- -- -- --
2. -- -- -- -- --
3. -- -- -- -- --
4. -- -- -- -- --
5. -- -- -- -- --
6. -- -- -- -- --
TOTAL PROFESSIONALS (MOR-1) -- -- -- -- --
<Caption>
MONTH MONTH MONTH MONTH
PROFESSIONALS/NAME/ORDER DATE JUNE JULY AUGUST SEPTEMBER
----------------------------- -------- -------- -------- ---------
1. -- -- -- --
2. -- -- -- --
3. -- -- -- --
4. -- -- -- --
5. -- -- -- --
6. -- -- -- --
TOTAL PROFESSIONALS (MOR-1) -- -- -- --
</Table>
MOR-9
UNITED STATES BANKRUPTCY COURT
SOUTHERN DISTRICT OF TEXAS
HOUSTON DIVISION
<Table>
CASE NAME: HSTR GENERAL HOLDINGS, INC. PETITION DATE: JANUARY 11, 2001
CASE NUMBER: 01-80028-G3-11
MONTHLY OPERATING REPORT SUMMARY FOR MONTH SEPTEMBER YEAR 2001
MONTH JANUARY FEBRUARY MARCH APRIL MAY
----- ------- -------- ------- ------- ------
REVENUES (MOR-6) -- -- -- -- --
INCOME BEFORE INT, DEPREC./TAX (MOR-6) -- -- -- -- --
NET INCOME (LOSS) (MOR-6) -- -- -- -- --
PAYMENTS TO INSIDERS (MOR-9) -- -- -- -- --
PAYMENTS TO PROFESSIONALS (MOR-9) -- -- -- -- --
TOTAL DISBURSEMENTS (MOR-8) -- -- -- -- --
<Caption>
MONTH JUNE JULY AUGUST SEPTEMBER
------ ------ -------- -----------
REVENUES (MOR-6) -- -- -- --
INCOME BEFORE INT, DEPREC./TAX (MOR-6) -- -- -- --
NET INCOME (LOSS) (MOR-6) -- -- -- --
PAYMENTS TO INSIDERS (MOR-9) -- -- -- --
PAYMENTS TO PROFESSIONALS (MOR-9) -- -- -- --
TOTAL DISBURSEMENTS (MOR-8) -- -- -- --
</Table>
*** The ORIGINAL of this document MUST BE FILED with the United States
Bankruptcy Court and a COPY MUST BE SENT to the United States Trustee ***
- --------------------------------------------------------------------------------
REQUIRED INSURANCE MAINTAINED
AS OF SIGNATURE DATE
<Table>
<Caption>
EXP.
DATE
----
CASUALTY YES (X) NO ( ) 06/30/02
LIABILITY YES (X) NO ( ) 06/30/02
VEHICLE YES (X) NO ( ) 06/30/02
WORKER'S YES (X) NO ( ) 03/27/02
OTHER - DIRECTOR/OFFICER YES (X) NO ( ) 01/23/02
</Table>
- --------------------------------------------------------------------------------
ATTORNEY NAME:
FIRM: Floyd, Isgur, Rios & Warlich, P. C.
Address: 700 Louisiana, Suite 4600
Address:
City, State, ZIP: Houston, TX 77002-2732
Telephone: 713-222-1470
Fax: 713-222-1475
- --------------------------------------------------------------------------------
<Table>
<Caption>
CIRCLE ONE
Are all accounts receivable being collected within terms? YES NO
Are all posted-petition liabilities, including taxes, being paid within terms? YES NO
Have any pre-petition liabilities been paid? YES NO
If so, describe.
--------------------------------------------------------------
- ------------------------------------------------------------------------------.
Are all funds received being deposited into DIP bank accounts? YES NO
Were any assets disposed of outside the normal course of business? YES NO
If so, describe.
--------------------------------------------------------------
- ------------------------------------------------------------------------------.
Are all U.S. Trustee Quarterly Fee Payments current? YES NO
What is the status of your Plan of Reorganization? PLAN OF REORGANIZATION
CONFIRMED BY COURT ON AUGUST 14, 2001. EFFECTIVE DATE OF REORGANIZATION -
OCTOBER 3, 2001.
</Table>
I certify under penalty of perjury that the
following complete Monthly Operating Report
(MOR), consisting of MOR-1 through MOR-9
plus attachments, is true and correct.
SIGNED /s/ CRAIG A. REYNOLDS
--------------------------------------
TITLE Executive Vice President, CFO
--------------------------------------
MOR-1
CASE NAME: HSTR GENERAL HOLDINGS, INC. CASE NUMBER 01-80028-G3-11
COMPARATIVE BALANCE SHEETS
<Table>
<Caption>
MONTH MONTH MONTH MONTH MONTH
ASSETS FILING DATE* JANUARY FEBRUARY MARCH APRIL MAY
------ ------------ ---------- ---------- ---------- ---------- ----------
CURRENT ASSETS
Cash -- -- -- -- -- --
Accounts Receivable, Net -- -- -- -- -- --
Inventory: Lower of Cost or Market -- -- -- -- -- --
Prepaid Expenses -- -- -- -- -- --
Investments -- -- -- -- -- --
Other -- -- -- -- -- --
----------- ---------- ---------- ---------- ---------- ----------
TOTAL CURRENT ASSETS -- -- -- -- -- --
=========== ========== ========== ========== ========== ==========
PROPERTY, PLANT&EQUIP, @ COST -- -- -- -- -- --
Less Accumulated Depreciation -- -- -- -- -- --
----------- ---------- ---------- ---------- ---------- ----------
Net Book Value of PP & E -- -- -- -- -- --
=========== ========== ========== ========== ========== ==========
OTHER ASSETS: -- -- -- --
1. Tax Deposits -- -- -- -- -- --
2. Investments in Subs 155,000 155,000 155,000 155,000 155,000 155,000
3. Deposits -- -- -- -- -- --
4. Interests in Insurance Policies -- -- -- -- -- --
5. Note Receivable -- -- -- -- -- --
6. Deferred Comp. Plan Assets -- -- -- -- -- --
----------- ---------- ---------- ---------- ---------- ----------
TOTAL ASSETS 155,000 155,000 155,000 155,000 155,000 155,000
=========== ========== ========== ========== ========== ==========
<Caption>
MONTH MONTH MONTH MONTH
ASSETS JUNE JULY AUGUST SEPTEMBER
------ ---------- ---------- ---------- ----------
CURRENT ASSETS
Cash -- -- -- --
Accounts Receivable, Net -- -- -- --
Inventory: Lower of Cost or Market -- -- -- --
Prepaid Expenses -- -- -- --
Investments -- -- -- --
Other -- -- -- --
---------- ---------- ---------- ----------
TOTAL CURRENT ASSETS -- -- -- --
========== ========== ========== ==========
PROPERTY, PLANT&EQUIP, @ COST -- -- -- --
Less Accumulated Depreciation -- -- -- --
---------- ---------- ---------- ----------
Net Book Value of PP & E -- -- -- --
========== ========== ========== ==========
OTHER ASSETS: -- -- -- --
1. Tax Deposits -- -- -- --
2. Investments in Subs 155,000 155,000 155,000 18,649
3. Deposits -- -- -- --
4. Interests in Insurance Policies -- -- -- --
5. Note Receivable -- -- -- --
6. Deferred Comp. Plan Assets -- -- -- --
---------- ---------- ---------- ----------
TOTAL ASSETS 155,000 155,000 155,000 18,649
========== ========== ========== ==========
</Table>
* Per Schedules and Statement of Affairs
MOR-2
CASE NAME: HSTR GENERAL HOLDINGS, INC. CASE NUMBER: 01-80028-G3-11
COMPARATIVE BALANCE SHEETS
<Table>
<Caption>
LIABILITIES & OWNER'S MONTH MONTH MONTH MONTH MONTH
EQUITY FILING DATE* JANUARY FEBRUARY MARCH APRIL MAY
- --------------------- ----------- ---------- ---------- ---------- ---------- ----------
LIABILITIES:
POST-PETITION LIABILITIES (MOR-4) -- -- -- -- -- --
PRE-PETITION LIABILITIES:
Notes Payable - Secured -- -- -- -- -- --
Priority Debt -- -- -- -- -- --
Federal Income Tax -- -- -- -- -- --
Fica/withholding -- -- -- -- -- --
Unsecured Debt -- -- -- -- -- --
Intercompany 281,730 281,730 281,730 281,730 281,730 281,730
Other -- -- -- -- -- --
---------- ---------- ---------- ---------- ---------- ----------
TOTAL PRE-PETITION LIABILITIES 281,730 281,730 281,730 281,730 281,730 281,730
---------- ---------- ---------- ---------- ---------- ----------
TOTAL LIABILITIES 281,730 281,730 281,730 281,730 281,730 281,730
========== ========== ========== ========== ========== ==========
OWNER'S EQUITY (DEFICIT):
Preferred Stock -- -- -- -- -- --
Common Stock -- -- -- -- -- --
ADDITIONAL PAID-IN CAPITAL -- -- -- -- -- --
RETAINED EARNINGS: FILING DATE (126,730) (126,730) (126,730) (126,730) (126,730) (126,730)
RETAINED EARNINGS: POST FILING DATE -- --
---------- ---------- ---------- ---------- ---------- ----------
TOTAL OWNER'S EQUITY (NET WORTH) (126,730) (126,730) (126,730) (126,730) (126,730) (126,730)
---------- ---------- ---------- ---------- ---------- ----------
TOTAL LIABILITIES &
OWNER'S EQUITY 155,000 155,000 155,000 155,000 155,000 155,000
========== ========== ========== ========== ========== ==========
<Caption>
LIABILITIES & OWNER'S MONTH MONTH MONTH MONTH
EQUITY JUNE JULY AUGUST SEPTEMBER
- --------------------- ---------- ---------- ---------- ----------
LIABILITIES:
POST-PETITION LIABILITIES (MOR-4) -- -- -- --
PRE-PETITION LIABILITIES:
Notes Payable - Secured -- -- -- --
Priority Debt -- -- -- --
Federal Income Tax -- -- -- --
Fica/withholding -- -- -- --
Unsecured Debt -- -- -- --
Intercompany 281,730 281,730 281,730 281,730
Other -- -- -- --
---------- ---------- ---------- ----------
TOTAL PRE-PETITION LIABILITIES 281,730 281,730 281,730 281,730
---------- ---------- ---------- ----------
TOTAL LIABILITIES 281,730 281,730 281,730 281,730
========== ========== ========== ==========
OWNER'S EQUITY (DEFICIT):
Preferred Stock -- -- -- --
Common Stock -- -- -- --
ADDITIONAL PAID-IN CAPITAL -- -- -- --
RETAINED EARNINGS: FILING DATE (126,730) (126,730) (126,730) (263,081)
RETAINED EARNINGS: POST FILING DATE
---------- ---------- ---------- ----------
TOTAL OWNER'S EQUITY (NET WORTH) (126,730) (126,730) (126,730) (263,081)
---------- ---------- ---------- ----------
TOTAL LIABILITIES &
OWNER'S EQUITY 155,000 155,000 155,000 18,649
========== ========== ========== ==========
</Table>
* Per Schedules and Statement of Affairs
MOR-3
CASE NAME: HSTR GENERAL HOLDINGS, INC. CASE NUMBER: 01-80028-G3-11
SCHEDULE OF POST-PETITION LIABILITIES
<Table>
<Caption>
MONTH MONTH MONTH MONTH MONTH
JANUARY FEBRUARY MARCH APRIL MAY
---------- ---------- ---------- ---------- ----------
TRADE ACCOUNTS PAYABLE -- -- -- -- --
---------- ---------- ---------- ---------- ----------
TAX PAYABLE
FEDERAL PAYROLL TAXES -- -- -- -- --
STATE PAYROLL & SALES -- -- -- -- --
AD VALOREM TAXES -- -- -- -- --
OTHER TAXES -- -- -- -- --
---------- ---------- ---------- ---------- ----------
TOTAL TAXES PAYABLE -- -- -- -- --
========== ========== ========== ========== ==========
SECURED DEBT POST-PETITION -- -- -- -- --
ACCRUED INTEREST PAYABLE -- -- -- -- --
* ACCRUED PROFESSIONAL FEES -- -- -- -- --
OTHER ACCRUED LIABILITIES: -- -- -- -- --
1. -- -- -- -- --
2. -- -- -- -- --
3. -- -- -- -- --
---------- ---------- ---------- ---------- ----------
TOTAL POST-PETITION LIABILITIES (MOR-3) -- -- -- -- --
========== ========== ========== ========== ==========
<Caption>
MONTH MONTH MONTH MONTH
JUNE JULY AUGUST SEPTEMBER
---------- ---------- ---------- ----------
TRADE ACCOUNTS PAYABLE -- -- -- --
---------- ---------- ---------- ----------
TAX PAYABLE
FEDERAL PAYROLL TAXES -- -- -- --
STATE PAYROLL & SALES -- -- -- --
AD VALOREM TAXES -- -- -- --
OTHER TAXES -- -- -- --
---------- ---------- ---------- ----------
TOTAL TAXES PAYABLE -- -- -- --
========== ========== ========== ==========
SECURED DEBT POST-PETITION -- -- -- --
ACCRUED INTEREST PAYABLE -- -- -- --
* ACCRUED PROFESSIONAL FEES -- -- -- --
OTHER ACCRUED LIABILITIES: -- -- -- --
1. -- -- -- --
2. -- -- -- --
3. -- -- -- --
---------- ---------- ---------- ----------
TOTAL POST-PETITION LIABILITIES (MOR-3) -- -- -- --
========== ========== ========== ==========
</Table>
* Payment Requires Court Approval.
MOR-4
CASE NAME: HSTR GENERAL HOLDINGS, INC. CASE NUMBER: 01-80028-G3-11
AGING OF POST-PETITION LIABILITIES
MONTH OF SEPTEMBER 2001
<Table>
<Caption>
AD-VALOREM,
DAYS TOTAL TRADE ACCTS FED TAXES STATE TAXES OTHER TAXES OTHER
---- ----- ----------- --------- ----------- ----------- -----
0-30 --
31-60 --
61-90 --
91 + --
TOTAL --
</Table>
AGING OF ACCOUNTS RECEIVABLE
<Table>
<Caption>
MONTH JANUARY FEBRUARY MARCH APRIL MAY
----- ---------- ---------- ---------- ---------- ----------
0-30 DAYS -- -- -- -- --
31-60 DAYS -- -- -- -- --
61-90 DAYS -- -- -- -- --
91 + DAYS -- -- -- -- --
TOTAL -- -- -- -- --
<Caption>
MONTH JUNE JULY AUGUST SEPTEMBER
----- ---------- ---------- ---------- ----------
0-30 DAYS -- -- -- --
31-60 DAYS -- -- -- --
61-90 DAYS -- -- -- --
91 + DAYS -- -- -- --
TOTAL -- -- -- --
</Table>
MOR-5
CASE NAME: HSTR GENERAL HOLDINGS, INC. CASE NUMBER: 01-80028-G3-11
STATEMENT OF INCOME (LOSS)
<Table>
<Caption>
MONTH JANUARY FEBRUARY MARCH APRIL MAY
----- ---------- ---------- ---------- ---------- ----------
REVENUES (MOR-1) -- -- -- -- --
TOTAL COST OF REVENUES -- -- -- -- --
GROSS PROFIT -- -- -- -- --
OPERATING EXPENSES:
Selling & Marketing -- -- -- -- --
General & Administrative -- -- -- -- --
Insiders Compensation -- -- -- -- --
Professional Fees -- -- -- -- --
Other (attach list) -- -- -- -- --
---------- ---------- ---------- ---------- ----------
TOTAL OPERATING EXPENSES -- -- -- -- --
========== ========== ========== ========== ==========
INCOME BEFORE INT, DEPR/TAX (MOR-1) -- -- -- -- --
========== ========== ========== ========== ==========
INTEREST EXPENSE -- -- -- -- --
DEPRECIATION -- -- -- -- --
OTHER (INCOME) EXPENSE* -- -- -- -- --
OTHER ITEMS** -- -- -- -- --
---------- ---------- ---------- ---------- ----------
TOTAL INT, DEPR & OTHER ITEMS -- -- -- -- --
---------- ---------- ---------- ---------- ----------
NET INCOME BEFORE TAXES -- -- -- -- --
========== ========== ========== ========== ==========
FEDERAL INCOME TAXES -- -- -- -- --
---------- ---------- ---------- ---------- ----------
NET INCOME (LOSS) (MOR-1) -- -- -- -- --
========== ========== ========== ========== ==========
<Caption>
MONTH JUNE JULY AUGUST SEPTEMBER FILING TO DATE
----- ---------- ---------- ---------- ---------- --------------
REVENUES (MOR-1) -- -- -- -- --
TOTAL COST OF REVENUES -- -- -- -- --
GROSS PROFIT -- -- -- -- --
OPERATING EXPENSES:
Selling & Marketing -- -- -- -- --
General & Administrative -- -- -- -- --
Insiders Compensation -- -- -- -- --
Professional Fees -- -- -- -- --
Other (attach list) -- -- -- -- --
---------- ---------- ---------- ---------- ----------
TOTAL OPERATING EXPENSES -- -- -- -- --
========== ========== ========== ========== ==========
INCOME BEFORE INT, DEPR/TAX (MOR-1) -- -- -- -- --
========== ========== ========== ========== ==========
INTEREST EXPENSE -- -- -- -- --
DEPRECIATION -- -- -- -- --
OTHER (INCOME) EXPENSE* -- -- -- -- --
OTHER ITEMS** -- -- -- -- --
---------- ---------- ---------- ---------- ----------
TOTAL INT, DEPR & OTHER ITEMS -- -- -- -- --
---------- ---------- ---------- ---------- ----------
NET INCOME BEFORE TAXES -- -- -- -- --
========== ========== ========== ========== ==========
FEDERAL INCOME TAXES -- -- -- -- --
---------- ---------- ---------- ---------- ----------
NET INCOME (LOSS) (MOR-1) -- -- -- -- --
========== ========== ========== ========== ==========
</Table>
Accrual Accounting Required, Otherwise Footnote With Explanation
* Footnote Mandatory
** Unusual and/or infrequent item(s) outside the ordinary course of
business; requires footnote
MOR-6
CASE NAME: HSTR GENERAL HOLDINGS, INC. CASE NUMBER: 01-80028-G3-11
<Table>
<Caption>
MONTH MONTH MONTH MONTH MONTH
CASH RECEIPTS AND DISBURSEMENTS JANUARY FEBRUARY MARCH APRIL MAY
- ------------------------------- ---------- ---------- ---------- ---------- ----------
1. CASH - BEGINNING OF MONTH -- -- -- -- --
RECEIPTS:
2. CASH SALES -- -- -- -- --
3. COLLECTION OF ACCOUNTS RECEIVABLE -- -- -- -- --
4. LOANS & ADVANCES (ATTACH LIST) -- -- -- -- --
5. SALE OF ASSETS -- -- -- -- --
6. OTHER (ATTACH LIST) -- -- -- -- --
---------- ---------- ---------- ---------- ----------
TOTAL RECEIPTS -- -- -- -- --
========== ========== ========== ========== ==========
(Withdrawal) Contribution by Individual Debtor MFR-2*
DISBURSEMENTS:
7. NET PAYROLL -- -- -- -- --
8. PAYROLL TAXES PAID -- -- -- -- --
9. SALES, USE & OTHER TAXES PAID -- -- -- -- --
10. SECURED / RENTAL / LEASES -- -- -- -- --
11. UTILITIES -- -- -- -- --
12. INSURANCE -- -- -- -- --
13. INVENTORY PURCHASES -- -- -- -- --
14. VEHICLE EXPENSES -- -- -- -- --
15. TRAVEL ENTERTAINMENT -- -- -- -- --
16. REPAIRS, MAINTENANCE & SUPPLIES -- -- -- -- --
17. ADMINISTRATIVE & SELLING -- -- -- -- --
18. OTHER (ATTACH LIST) -- -- -- -- --
---------- ---------- ---------- ---------- ----------
TOTAL DISBURSEMENTS FROM OPERATIONS -- -- -- -- --
========== ========== ========== ========== ==========
19. PROFESSIONAL FEES -- -- -- -- --
20. U.S. TRUSTEE FEES -- -- -- -- --
21. OTHER REORGANIZATION EXPENSES (ATTACH LIST) -- -- -- -- --
---------- ---------- ---------- ---------- ----------
TOTAL DISBURSEMENTS -- -- -- -- --
========== ========== ========== ========== ==========
22. NET CASH FLOW -- -- -- -- --
---------- ---------- ---------- ---------- ----------
23. CASH - END OF MONTH (MOR-2) -- -- -- -- --
========== ========== ========== ========== ==========
<Caption>
MONTH MONTH MONTH MONTH FILING TO
CASH RECEIPTS AND DISBURSEMENTS JUNE JULY AUGUST SEPTEMBER DATE
- ------------------------------- --------- ---------- ---------- ---------- ----------
1. CASH - BEGINNING OF MONTH -- -- -- -- --
RECEIPTS:
2. CASH SALES -- -- -- -- --
3. COLLECTION OF ACCOUNTS RECEIVABLE -- -- -- -- --
4. LOANS & ADVANCES (ATTACH LIST) -- -- -- -- --
5. SALE OF ASSETS -- -- -- -- --
6. OTHER (ATTACH LIST) -- -- -- -- --
---------- ---------- ---------- ---------- ----------
TOTAL RECEIPTS -- -- -- -- --
========== ========== ========== ========== ==========
(WITHDRAWAL) CONTRIBUTION BY INDIVIDUAL DEBTOR MFR-2*
DISBURSEMENTS:
7. NET PAYROLL -- -- -- -- --
8. PAYROLL TAXES PAID -- -- -- -- --
9. SALES, USE & OTHER TAXES PAID -- -- -- -- --
10. SECURED / RENTAL / LEASES -- -- -- -- --
11. UTILITIES -- -- -- -- --
12. INSURANCE -- -- -- -- --
13. INVENTORY PURCHASES -- -- -- -- --
14. VEHICLE EXPENSES -- -- -- -- --
15. TRAVEL ENTERTAINMENT -- -- -- -- --
16. REPAIRS, MAINTENANCE & SUPPLIES -- -- -- -- --
17. ADMINISTRATIVE & SELLING -- -- -- -- --
18. OTHER (attach list) -- -- -- -- --
---------- ---------- ---------- ---------- ----------
TOTAL DISBURSEMENTS FROM OPERATIONS -- -- -- -- --
========== ========== ========== ========== ==========
19. PROFESSIONAL FEES -- -- -- -- --
20. U.S. TRUSTEE FEES -- -- -- -- --
21. OTHER REORGANIZATION EXPENSES (ATTACH LIST) -- -- -- -- --
---------- ---------- ---------- ---------- ----------
TOTAL DISBURSEMENTS -- -- -- -- --
========== ========== ========== ========== ==========
22. NET CASH FLOW -- -- -- -- --
---------- ---------- ---------- ---------- ----------
23. CASH - END OF MONTH (MOR-2) -- -- -- -- --
========== ========== ========== ========== ==========
</Table>
* applies to Individual debtor's only.
MOR-7
CASE NAME: HSTR GENERAL HOLDINGS, INC. CASE NUMBER: 01-80028-G3-11
CASH ACCOUNT RECONCILIATION
MONTH OF SEPTEMBER 2001
<Table>
<Caption>
BANK NAME
ACCOUNT NUMBER
ACCOUNT TYPE TOTAL
-----
BANK BALANCE --
DEPOSIT IN TRANSIT --
OUTSTANDING CHECKS --
ADJUSTED BANK BALANCE --
BEGINNING CASH - PER BOOKS --
RECEIPTS --
TRANSFERS BETWEEN ACCOUNTS --
(WITHDRAWAL) CONTRIBUTION - BY INDIVIDUAL DEBTOR MFR-2 --
CHECKS / OTHER DISBURSEMENTS --
ENDING CASH - PER BOOKS --
</Table>
MOR-8
CASE NAME: HSTR GENERAL HOLDINGS, INC. CASE NUMBER: 01-80028-G3-11
PAYMENTS TO INSIDERS AND PROFESSIONALS
OF THE TOTAL DISBURSEMENTS SHOWN FOR THE MONTH, LIST THE AMOUNT PAID TO INSIDERS
(AS DEFINED IN SECTION 101(30)(A)-(F) OF THE U. S. BANKRUPTCY CODE) AND THE
PROFESSIONALS. ALSO, FOR INSIDERS IDENTIFY THE TYPE OF COMPENSATION PAID (E.G.,
SALARY, COMMISSION, BONUS, ETC.) (ATTACH ADDITIONAL PAGES AS NECESSARY).
<Table>
<Caption>
MONTH MONTH MONTH MONTH MONTH
INSIDERS: NAME/POSITION/COMP TYPE JANUARY FEBRUARY MARCH APRIL MAY
- --------------------------------- ---------- ---------- ---------- ---------- ----------
1. Finis F. Teeter/President -- -- -- -- --
2. Ronald McCaslin/Vice President, Director -- -- -- -- --
3. Charles N. Carney, Jr./Vice President, Director -- -- -- -- --
4. Richard A. Carver/Vice President -- -- -- -- --
5. Jackie Holland/Vice President -- -- -- -- --
6. Craig A. Reynolds/Vice President, Secretary -- -- -- -- --
7. Kristi E. Gross/Assistant Secretary -- -- -- -- --
8. Mary Morton/Assistant Secretary -- -- -- -- --
---------- ---------- ---------- ---------- ----------
TOTAL INSIDERS (MOR-1) -- -- -- -- --
========== ========== ========== ========== ==========
<Caption>
MONTH MONTH MONTH MONTH
INSIDERS: NAME/POSITION/COMP TYPE JUNE JULY AUGUST SEPTEMBER
- --------------------------------- ---------- ---------- ---------- ----------
1. Finis F. Teeter/President -- -- -- --
2. Ronald McCaslin/Vice President, Director -- -- -- --
3. Charles N. Carney, Jr./Vice President, Director -- -- -- --
4. Richard A. Carver/Vice President -- -- -- --
5. Jackie Holland/Vice President -- -- -- --
6. Craig A. Reynolds/Vice President, Secretary -- -- -- --
7. Kristi E. Gross/Assistant Secretary -- -- -- --
8. Mary Morton/Assistant Secretary -- -- -- --
---------- ---------- ---------- ----------
TOTAL INSIDERS (MOR-1) -- -- -- --
========== ========== ========== ==========
</Table>
<Table>
<Caption>
MONTH MONTH MONTH MONTH MONTH
PROFESSIONALS/NAME/ORDER DATE JANUARY FEBRUARY MARCH APRIL MAY
- ----------------------------- ---------- ---------- ---------- ---------- ----------
1. -- -- -- -- --
2. -- -- -- -- --
3. -- -- -- -- --
4. -- -- -- -- --
5. -- -- -- -- --
6. -- -- -- -- --
---------- ---------- ---------- ---------- ----------
TOTAL PROFESSIONALS (MOR-1) -- -- -- -- --
========== ========== ========== ========== ==========
<Caption>
MONTH MONTH MONTH MONTH
PROFESSIONALS/NAME/ORDER DATE JUNE JULY AUGUST SEPTEMBER
- ----------------------------- ---------- ---------- ---------- ----------
1. -- -- -- --
2. -- -- -- --
3. -- -- -- --
4. -- -- -- --
5. -- -- -- --
6. -- -- -- --
---------- ---------- ---------- ----------
TOTAL PROFESSIONALS (MOR-1) -- -- -- --
========== ========== ========== ==========
</Table>
MOR-9
UNITED STATES BANKRUPTCY COURT
SOUTHERN DISTRICT OF TEXAS
HOUSTON DIVISION
<Table>
CASE NAME: NATIONWIDE OF ALABAMA, INC. PETITION DATE: JANUARY 11, 2001
CASE NUMBER: 01-80032-G3-11
</Table>
MONTHLY OPERATING REPORT SUMMARY FOR MONTH SEPTEMBER YEAR 2001
--------- ----
<Table>
<Caption>
MONTH JANUARY FEBRUARY MARCH APRIL MAY
----- ------- -------- -------- ------- --------
REVENUES (MOR-6) 1,489 325,548 312,547 189,235 416,489
INCOME BEFORE INT, DEPREC./TAX (MOR-6) (27,345) (835,029) (146,846) (182,096) (817,577)
NET INCOME (LOSS) (MOR-6) (43,635) (850,192) (162,009) (182,096) (817,577)
PAYMENTS TO INSIDERS (MOR-9) -- -- -- -- --
PAYMENTS TO PROFESSIONALS (MOR-9) -- -- 54 765 5,632
TOTAL DISBURSEMENTS (MOR-8) 39,111 95,908 233,515 281,399 241,689
<Caption>
MONTH JUNE JULY AUGUST SEPTEMBER
----- -------- -------- ------- ---------
REVENUES (MOR-6) 338,041 105,908 213,122 95
INCOME BEFORE INT, DEPREC./TAX (MOR-6) (171,288) (364,483) 8,435 (29,425)
NET INCOME (LOSS) (MOR-6) (171,288) (364,483) 8,435 (29,425)
PAYMENTS TO INSIDERS (MOR-9) -- -- -- --
PAYMENTS TO PROFESSIONALS (MOR-9) 1,296 2,494 854 770
TOTAL DISBURSEMENTS (MOR-8) 204,190 149,340 132,973 82,429
</Table>
*** The ORIGINAL of this document MUST BE FILED with the United States
Bankruptcy Court and a COPY MUST BE SENT to the United States Trustee ***
- --------------------------------------------------------------------------------
REQUIRED INSURANCE MAINTAINED
AS OF SIGNATURE DATE
<Table>
<Caption>
EXP.
DATE
----
CASUALTY YES (X) NO ( ) 06/30/02
LIABILITY YES (X) NO ( ) 06/30/02
VEHICLE YES (X) NO ( ) 06/30/02
WORKER'S YES (X) NO ( ) 03/28/02
OTHER - DIRECTOR/OFFICER YES (X) NO ( ) 01/23/02
</Table>
- --------------------------------------------------------------------------------
ATTORNEY NAME:
FIRM: Floyd, Isgur, Rios & Warlich, P. C.
Address: 700 Louisiana, Suite 4600
Address:
City, State, ZIP: Houston, TX 77002-2732
Telephone: 713-222-1470
Fax: 713-222-1475
- --------------------------------------------------------------------------------
<Table>
<Caption>
CIRCLE ONE
Are all accounts receivable being collected within terms? YES NO
Are all posted-petition liabilities, including taxes, being paid within terms? YES NO
Have any pre-petition liabilities been paid? YES NO
If so, describe. PURSUANT TO COURT ORDER AUTHORIZING PAYMENTS OF PRE-PETITION
WAGES, SALARIES, COMMISSIONS AND COMPENSATION SIGNED JANUARY 11, 2001.
Are all funds received being deposited into DIP bank accounts? YES NO
Were any assets disposed of outside the normal course of business? YES NO
If so, describe. PROPERTY, PLANT & EQUIPMENT AND OTHER ASSET SALES MADE
PURSUANT TO VARIOUS COURT ORDERS AUTHORIZING SUCH ASSET SALES.
Are all U.S. Trustee Quarterly Fee Payments current? YES NO
What is the status of your Plan of Reorganization? PLAN OF REORGANIZATION
CONFIRMED BY COURT ON AUGUST 14, 2001. EFFECTIVE DATE OF REORGANIZATION -
OCTOBER 3, 2001.
</Table>
I certify under penalty of perjury that the
following complete Monthly Operating Report
(MOR), consisting of MOR-1 through MOR-9 plus
attachments, is true and correct.
SIGNED /s/ CRAIG A. REYNOLDS
--------------------------------------
TITLE Vice President of Finance
--------------------------------------
MOR-1
CASE NAME: NATIONWIDE OF ALABAMA, INC. CASE NUMBER: 01-80032-G3-11
COMPARATIVE BALANCE SHEETS
<Table>
<Caption>
MONTH MONTH MONTH MONTH MONTH
ASSETS FILING DATE* JANUARY FEBRUARY MARCH APRIL MAY
------ ------------ --------- --------- --------- --------- -------
CURRENT ASSETS
Cash 59,187 56,385 121,955 220,783 213,600 173,839
Accounts Receivable, Net 650,210 598,662 633,460 410,287 213,008 19,525
Inventory: Lower of Cost or Market 2,883,645 2,865,429 2,324,295 1,878,961 1,645,778 --
Prepaid Expenses 140,851 136,113 24,623 43,700 38,504 --
Investments -- -- -- -- -- --
Other -- -- -- -- -- --
---------- --------- --------- --------- --------- -------
TOTAL CURRENT ASSETS 3,733,893 3,656,589 3,104,333 2,553,731 2,110,891 193,364
========== ========= ========= ========= ========= =======
PROPERTY, PLANT&EQUIP, @ COST 1,071,490 1,071,490 1,071,490 1,071,490 883,179 876,633
Less Accumulated Depreciation 413,749 428,911 444,074 459,236 364,837 374,178
Less Impairment of Assets 432,057 432,057 322,983 502,455 323,198 290,333
---------- --------- --------- --------- --------- -------
Net Book Value of PP & E 657,741 642,579 195,359 180,197 195,359 --
========== ========= ========= ========= ========= =======
OTHER ASSETS:
1. Tax Deposits -- -- -- -- -- --
2. Investments in Subs -- -- -- -- -- --
3. Deposits 3,225 3,225 3,225 3,225 3,225 3,225
4. Interests in Insurance Policies -- -- -- -- -- --
5. Note Receivable -- -- -- -- -- --
6. Other Assets -- 418,804 418,804 418,804 418,804 --
---------- --------- --------- --------- --------- -------
TOTAL ASSETS 4,394,859 4,721,197 3,721,721 3,155,957 2,728,279 196,589
========== ========= ========= ========= ========= =======
<Caption>
MONTH MONTH MONTH MONTH
ASSETS JUNE JULY AUGUST SEPTEMBER
------ ------- ------- ------ ---------
CURRENT ASSETS
Cash 140,557 47,822 75,792 45,708
Accounts Receivable, Net 22,436 (3,225) 25,144 (2,917)
Inventory: Lower of Cost or Market -- (73,029) (42,890) (42,890)
Prepaid Expenses -- 554 -- --
Investments -- -- -- --
Other -- --
------- ------- ------ -----
TOTAL CURRENT ASSETS 162,993 (27,878) 58,046 (98)
======= ======= ====== =====
PROPERTY, PLANT&EQUIP, @ COST 607,970 562,833 562,833 562,833
Less Accumulated Depreciation 284,772 272,500 272,500 286,774
Less Impairment of Assets 290,333 276,060
------- ------- ------ -----
Net Book Value of PP & E -- -- -- --
======= ======= ====== =====
OTHER ASSETS:
1. Tax Deposits -- -- -- --
2. Investments in Subs -- -- -- --
3. Deposits 3,225 3,225 3,225 3,225
4. Interests in Insurance Policies -- -- -- --
5. Note Receivable -- -- -- --
6. Other Assets -- -- -- --
------- ------- ------ -----
TOTAL ASSETS 166,218 (24,653) 61,271 3,127
======= ======= ====== =====
</Table>
* Per Schedules and Statement of Affairs
MOR-2
CASE NAME: NATIONWIDE OF ALABAMA, INC. CASE NUMBER: 01-80032-G3-11
COMPARATIVE BALANCE SHEETS
<Table>
<Caption>
LIABILITIES & OWNER'S MONTH MONTH MONTH MONTH MONTH
EQUITY FILING DATE* JANUARY FEBRUARY MARCH APRIL MAY
- --------------------- ------------ ---------- ---------- ---------- --------- ----------
LIABILITIES:
POST-PETITION LIABILITIES (MOR-4) 132,230 457,506 397,339 478,609 295,239
PRE-PETITION LIABILITIES:
Notes Payable - Secured 2,931,253 2,898,269 2,646,990 2,336,726 1,756,962 --
Priority Debt 182,426 115,495 48,473 24,673 32,155 27,115
Federal Income Tax (35,805) (35,805) (35,805) (35,805) (35,805) --
FICA/Withholding -- -- -- -- -- --
Unsecured Debt 349,774 326,353 177,721 168,197 369,186 564,640
Intercompany 6,978,762 7,339,841 7,332,213 7,332,213 7,376,654 7,376,654
Other -- -- -- -- -- --
---------- ---------- ---------- ---------- ---------- ----------
TOTAL PRE-PETITION LIABILITIES 10,406,410 10,644,152 10,169,593 9,826,004 9,499,153 7,968,410
---------- ---------- ---------- ---------- ---------- ----------
TOTAL LIABILITIES 10,406,410 10,776,382 10,627,098 10,223,344 9,977,762 8,263,649
========== ========== ========== ========== ========== ==========
OWNER'S EQUITY (DEFICIT):
Preferred Stock -- -- -- -- -- --
Common Stock 10 10 10 10 10 10
ADDITIONAL PAID-IN CAPITAL 9,990 9,990 9,990 9,990 9,990 9,990
RETAINED EARNINGS: FILING DATE (6,021,550) (6,021,550) (6,021,550) (6,021,550) (6,021,550) (6,021,550)
RETAINED EARNINGS: POST FILING DATE -- (43,635) (893,827) (1,055,836) (1,237,933) (2,055,510)
---------- ---------- ---------- ---------- ---------- ----------
TOTAL OWNER'S EQUITY (NET WORTH) (6,011,550) (6,055,185) (6,905,377) (7,067,387) (7,249,483) (8,067,060)
---------- ---------- ---------- ---------- ---------- ----------
TOTAL LIABILITIES &
OWNER'S EQUITY 4,394,859 4,721,197 3,721,721 3,155,957 2,728,279 196,589
========== ========== ========== ========== ========== ==========
<Caption>
LIABILITIES & OWNER'S MONTH MONTH MONTH MONTH
EQUITY JUNE JULY AUGUST SEPTEMBER
- --------------------- --------- --------- --------- ----------
LIABILITIES:
POST-PETITION LIABILITIES (MOR-4) 394,639 415,367 472,704 481,851
PRE-PETITION LIABILITIES:
Notes Payable - Secured -- -- -- 11,782
Priority Debt 27,115 27,115 26,515 26,515
Federal Income Tax -- -- -- --
FICA/Withholding -- -- -- --
Unsecured Debt 606,158 759,043 779,796 808,118
Intercompany 7,376,654 7,376,654 7,376,654 7,376,654
Other -- -- -- --
---------- ---------- ---------- ----------
TOTAL PRE-PETITION LIABILITIES 8,009,927 8,162,812 8,182,965 8,223,069
---------- ---------- ---------- ----------
TOTAL LIABILITIES 8,404,566 8,578,179 8,655,669 8,704,920
========== ========== ========== ==========
OWNER'S EQUITY (DEFICIT):
Preferred Stock -- -- -- --
Common Stock 10 10 10 10
ADDITIONAL PAID-IN CAPITAL 9,990 9,990 9,990 9,990
RETAINED EARNINGS: FILING DATE (6,021,550) (6,021,550) (6,021,550) (6,021,550)
RETAINED EARNINGS: POST FILING DATE (2,226,798) (2,591,282) (2,591,282) (2,591,282)
---------- ---------- ---------- ----------
TOTAL OWNER'S EQUITY (NET WORTH) (8,238,349) (8,602,832) (8,594,397) (8,701,794)
---------- ---------- ---------- ----------
TOTAL LIABILITIES &
OWNER'S EQUITY 166,218 (24,653) 61,271 3,127
========== ========== ========== ==========
</Table>
* Per Schedules and Statement of Affairs
MOR-3
CASE NAME: NATIONWIDE OF ALABAMA, INC. CASE NUMBER: 01-80032-G3-11
SCHEDULE OF POST-PETITION LIABILITIES
<Table>
<Caption>
MONTH MONTH MONTH MONTH MONTH
JANUARY FEBRUARY MARCH APRIL MAY
------- -------- ------- ------- -------
TRADE ACCOUNTS PAYABLE 118,149 138,806 273,590 393,577 224,842
------- ------- ------- ------- -------
TAX PAYABLE
FEDERAL PAYROLL TAXES 4,158 14,429 16,887 13,471 7,101
STATE PAYROLL & SALES -- 9,108 9,100 3,140 1,697
AD VALOREM TAXES 250 250 200 450 450
OTHER TAXES -- -- -- -- --
------- ------- ------- ------- -------
TOTAL TAXES PAYABLE 4,408 23,787 26,187 17,060 9,248
======= ======= ======= ======= =======
SECURED DEBT POST-PETITION -- -- -- -- --
ACCRUED INTEREST PAYABLE -- -- -- -- --
* ACCRUED PROFESSIONAL FEES -- -- -- -- --
OTHER ACCRUED LIABILITIES: -- -- -- --
1. INTERCOMPANY 9,674 58,927 53,244 52,669 54,885
2. COST OF SALES 162,350 -- --
3. DEPOSITS 40,672 -- --
4. SALARIES 32,963 44,318 15,304 6,264
------- ------- ------- ------- -------
TOTAL POST-PETITION LIABILITIES (MOR-3) 132,230 457,506 397,339 478,609 295,239
======= ======= ======= ======= =======
<Caption>
MONTH MONTH MONTH MONTH
JUNE JULY AUGUST SEPTEMBER
------- ------- ------- ---------
TRADE ACCOUNTS PAYABLE 321,029 405,857 482,729 484,176
------- ------- ------- -------
TAX PAYABLE
FEDERAL PAYROLL TAXES 6,955 6,773 12,539 9,902
STATE PAYROLL & SALES -- (573) 2,216 (1,953)
AD VALOREM TAXES 450 450 450 450
OTHER TAXES -- -- -- --
------- ------- ------- -------
TOTAL TAXES PAYABLE 7,405 6,650 15,204 8,399
======= ======= ======= =======
SECURED DEBT POST-PETITION -- -- (33,916) (11,782)
ACCRUED INTEREST PAYABLE
* ACCRUED PROFESSIONAL FEES -- -- -- --
OTHER ACCRUED LIABILITIES: -- -- -- --
1. INTERCOMPANY 56,950 2,118
2. COST OF SALES -- -- -- --
3. DEPOSITS -- -- -- --
4. SALARIES 9,255 2,859 8,686 (1,060)
------- ------- ------- -------
TOTAL POST-PETITION LIABILITIES (MOR-3) 394,639 415,367 472,704 481,851
======= ======= ======= =======
</Table>
* PAYMENT REQUIRES COURT APPROVAL.
MOR-4
CASE NAME: NATIONWIDE OF ALABAMA, INC. CASE NUMBER: 01-80032-G3-11
AGING OF POST-PETITION LIABILITIES
MONTH OF SEPTEMBER 2001
<Table>
<Caption>
AD-VALOREM,
DAYS TOTAL TRADE ACCTS FED TAXES STATE TAXES OTHER TAXES OTHER
---- ------- ----------- --------- ----------- ----------- -------
0-30 481,851 484,176 9,902 (1,953) 450 (10,723)
31-60 --
61-90 --
91 + --
TOTAL 481,851 484,176 9,902 (1,953) 450 (10,723)
</Table>
AGING OF ACCOUNTS RECEIVABLE
<Table>
<Caption>
MONTH JANUARY FEBRUARY MARCH APRIL MAY
----- ------- ------- ------- ------- ------
0-30 DAYS (230) -- -- -- --
31-60 DAYS 177,832 -- -- -- --
61-90 DAYS (26,210) 127,832 -- -- --
91 + DAYS 447,271 505,628 410,287 213,008 19,525
TOTAL 598,662 633,460 410,287 213,008 19,525
<Caption>
MONTH JUNE JULY AUGUST SEPTEMBER
----- ------ ----- ------ ---------
0-30 DAYS -- -- 21,919 (6,142)
31-60 DAYS -- -- -- --
61-90 DAYS -- -- -- --
91 + DAYS 22,436 3,225 3,225 3,225
TOTAL 22,436 3,225 25,144 (2,917)
</Table>
MOR-5
CASE NAME: NATIONWIDE OF ALABAMA, INC. CASE NUMBER: 01-80032-G3-11
STATEMENT OF INCOME (LOSS)
<Table>
<Caption>
MONTH JANUARY FEBRUARY MARCH APRIL MAY
----- ------- -------- -------- -------- --------
REVENUES (MOR-1) 1,489 325,548 312,547 189,235 416,489
TOTAL COST OF REVENUES 7,273 340,889 365,258 275,121 428,953
GROSS PROFIT (5,784) (15,341) (52,711) (85,886) (12,464)
OPERATING EXPENSES:
Selling & Marketing 17,393 54,059 51,539 73,624 72,570
General & Administrative 4,168 33,643 42,488 34,000 83,805
Insiders Compensation -- -- -- --
Professional Fees -- -- -- 3,750 250
Impairment of Assets 731,986 108 (15,164) 648,488
Other (attach list) -- -- -- -- --
------- -------- -------- -------- --------
TOTAL OPERATING EXPENSES 21,561 819,688 94,135 96,210 805,113
======= ======== ======== ======== ========
INCOME BEFORE INT, DEPR/TAX (MOR-1) (27,345) (835,029) (146,846) (182,096) (817,577)
======= ======== ======== ======== ========
INTEREST EXPENSE 1,127 -- -- -- --
DEPRECIATION 15,163 15,163 15,163 -- --
OTHER (INCOME) EXPENSE * -- -- -- -- --
OTHER ITEMS ** -- -- -- -- --
------- -------- -------- -------- --------
TOTAL INT, DEPR & OTHER ITEMS 16,290 15,163 15,163 -- --
------- -------- -------- -------- --------
NET INCOME BEFORE TAXES (43,635) (850,192) (162,009) (182,096) (817,577)
======= ======== ======== ======== ========
FEDERAL INCOME TAXES -- -- -- -- --
------- -------- -------- -------- --------
NET INCOME (LOSS) (MOR-1) (43,635) (850,192) (162,009) (182,096) (817,577)
======= ======== ======== ======== ========
<Caption>
MONTH JUNE JULY AUGUST SEPTEMBER FILING TO DATE
----- -------- -------- ------- --------- --------------
REVENUES (MOR-1) 338,041 105,908 213,122 95 1,900,890
TOTAL COST OF REVENUES 459,973 374,342 172,065 2,210 2,416,601
GROSS PROFIT (121,932) (268,434) 41,057 (2,115) (515,711)
OPERATING EXPENSES:
Selling & Marketing 118,515 46,937 9,319 8,226 426,563
General & Administrative 27,231 44,544 23,303 19,084 308,098
Insiders Compensation -- -- -- -- --
Professional Fees 3,335 7,335
Impairment of Assets (99,725) 1,265,694
Other (attach list) 4,568 -- -- 4,568
-------- -------- ----- ------- ----------
TOTAL OPERATING EXPENSES 49,356 96,049 32,622 27,310 2,012,258
======== ======== ===== ======= ==========
INCOME BEFORE INT, DEPR/TAX (MOR-1) (171,288) (364,483) 8,435 (29,425) (2,527,969)
======== ======== ===== ======= ==========
INTEREST EXPENSE -- -- -- -- --
DEPRECIATION -- -- -- -- 30,326
OTHER (INCOME) EXPENSE * -- -- -- -- --
OTHER ITEMS ** -- -- -- -- --
-------- -------- ----- ------- ----------
TOTAL INT, DEPR & OTHER ITEMS -- -- -- -- 30,326
-------- -------- ----- ------- ----------
NET INCOME BEFORE TAXES (171,288) (364,483) 8,435 (29,425) (2,558,295)
======== ======== ===== ======= ==========
FEDERAL INCOME TAXES -- -- -- -- --
-------- -------- ----- ------- ----------
NET INCOME (LOSS) (MOR-1) (171,288) (364,483) 8,435 (29,425) (2,558,295)
======== ======== ===== ======= ==========
</Table>
Accrual Accounting Required, Otherwise Footnote With Explanation
* Footnote Mandatory
** Unusual and/or infrequent item(s) outside the ordinary course of business;
requires footnote
MOR-6
CASE NAME: NATIONWIDE OF ALABAMA, INC. CASE NUMBER: 01-80032-G3-11
<Table>
<Caption>
MONTH MONTH MONTH MONTH MONTH
CASH RECEIPTS AND DISBURSEMENTS JANUARY FEBRUARY MARCH APRIL MAY
- ------------------------------- ------- -------- ------- ------- -------
1. CASH - BEGINNING OF MONTH 59,187 56,385 121,955 220,783 213,600
RECEIPTS:
2. CASH SALES 17,697 66,688 47,171 -- --
3. COLLECTION OF ACCOUNTS RECEIVABLE 19,962 33,451 240,146 132,129 182,421
4. LOANS & ADVANCES (ATTACH LIST) -- --
5. SALE OF ASSETS -- --
6. CUSTOMER DEPOSITS 554 7,250 --
7. INTERCOMPANY 52,185 45,026 142,087 19,507
8. OTHER (ATTACH LIST) -- --
------ ------- ------- ------- -------
TOTAL RECEIPTS 38,212 159,574 332,343 274,216 201,928
====== ======= ======= ======= =======
(WITHDRAWAL) CONTRIBUTION BY INDIVIDUAL DEBTOR MFR-2*
DISBURSEMENTS:
8. NET PAYROLL -- 9,433 --
9. PAYROLL TAXES PAID -- 8,169 15,138 1,759
10. SALES, USE & OTHER TAXES PAID -- 706 5,808
11. SECURED / RENTAL / LEASES -- 53,697 123,290 191,257 72,216
12. UTILITIES -- 1,167 5,555 5,954 6,101
13. INSURANCE 4,478 2,906 26,454 1,293 1,728
14. INVENTORY PURCHASES 32,828 8,655 (1,578) (5,799) 12,698
15. VEHICLE EXPENSES 1,057 1,445 1,406 1,164 900
16. TRAVEL ENTERTAINMENT -- 73 59 29
17. REPAIRS, MAINTENANCE & SUPPLIES 67 5,406 30,376 27,389 69,332
18. ADMINISTRATIVE & SELLING 680 4,904 2,595 597 12,308
19. INTERCOMPANY 1,903 -- --
20. DELIVERY 15,118 37,121 30,400 49,871
21. OTHER (ATTACH LIST) -- -- -- --
------ ------- ------- ------- -------
TOTAL DISBURSEMENTS FROM OPERATIONS 41,014 94,003 233,461 276,884 232,749
====== ======= ======= ======= =======
21. PROFESSIONAL FEES -- -- 54 765 5,632
22. U.S. TRUSTEE FEES -- -- 3,750 250
23. OTHER REORGANIZATION EXPENSES (ATTACH LIST) -- --
------ ------- ------- ------- -------
TOTAL DISBURSEMENTS 41,014 94,003 233,515 281,399 238,631
====== ======= ======= ======= =======
24. NET CASH FLOW (2,802) 65,570 98,827 (7,183) (36,703)
------ ------- ------- ------- -------
25. CASH - END OF MONTH (MOR-2) 56,385 121,955 220,783 213,600 176,897
====== ======= ======= ======= =======
<Caption>
MONTH MONTH MONTH MONTH FILING TO
CASH RECEIPTS AND DISBURSEMENTS JUNE JULY AUGUST SEPTEMBER DATE
- ------------------------------- ------- ------- ------- --------- ---------
1. CASH - BEGINNING OF MONTH 176,897 143,617 47,822 75,792 59,187
RECEIPTS:
2. CASH SALES -- -- -- -- 131,556
3. COLLECTION OF ACCOUNTS RECEIVABLE 80,029 79,587 142,550 15,383 925,658
4. LOANS & ADVANCES (ATTACH LIST) -- -- -- -- --
5. SALE OF ASSETS -- -- -- -- --
6. CUSTOMER DEPOSITS -- -- -- -- 7,804
7. INTERCOMPANY 90,879 18,393 36,962 405,039
8. OTHER (ATTACH LIST) -- -- -- -- --
------- ------- ------- ------- ---------
TOTAL RECEIPTS 170,908 79,587 160,943 52,345 1,470,055
======= ======= ======= ======= =========
(WITHDRAWAL) CONTRIBUTION BY INDIVIDUAL DEBTOR MFR-2*
DISBURSEMENTS:
8. NET PAYROLL -- -- 945 8,965 19,343
9. PAYROLL TAXES PAID -- 2,146 2,700 4,528 34,440
10. SALES, USE & OTHER TAXES PAID 8,402 3,690 -- 5,342 23,947
11. SECURED / RENTAL / LEASES 113,297 16,350 10,500 10,500 591,106
12. UTILITIES 6,164 5,216 2,627 1,502 34,286
13. INSURANCE 3,699 1,728 17 911 43,214
14. INVENTORY PURCHASES 18,127 111,018 108,192 49,411 333,553
15. VEHICLE EXPENSES 1,075 1,109 823 500 9,479
16. TRAVEL ENTERTAINMENT -- -- -- 161
17. REPAIRS, MAINTENANCE & SUPPLIES 42,254 7,704 6,298 -- 188,825
18. ADMINISTRATIVE & SELLING 661 (2,555) 18 -- 19,207
19. INTERCOMPANY -- 22,982 -- 24,885
20. DELIVERY 9,215 -- -- 141,725
21. OTHER (ATTACH LIST)
------- ------- ------- ------- ---------
TOTAL DISBURSEMENTS FROM OPERATIONS 202,893 169,387 132,119 81,659 1,464,171
======= ======= ======= ======= =========
21. PROFESSIONAL FEES 1,296 854 -- 8,601
22. U.S. TRUSTEE FEES -- -- -- -- 4,000
23. OTHER REORGANIZATION EXPENSES (ATTACH LIST) -- 5,994 -- 770 6,764
------- ------- ------- ------- ---------
TOTAL DISBURSEMENTS 204,189 175,381 132,973 82,429 1,483,535
======= ======= ======= ======= =========
24. NET CASH FLOW (33,282) (95,794) 27,969 (30,083) (13,479)
------- ------- ------- ------- ---------
25. CASH - END OF MONTH (MOR-2) 143,617 47,822 75,792 45,708 45,708
======= ======= ======= ======= =========
</Table>
* applies to Individual debtor's only.
MOR-7
CASE NAME: NATIONWIDE OF ALABAMA, INC. CASE NUMBER: 01-80032-G3-11
CASH ACCOUNT RECONCILIATION
MONTH OF SEPTEMBER 2001
<Table>
<Caption>
BANK NAME BANK OF AMERICA NAT. BANK OF COMM. BANK OF AMERICA
- --------- --------------- ------------------ ----------------
ACCOUNT NUMBER # 3755500247 # 363093
ACCOUNT TYPE OPERATING DEPOSITORY PAYROLL
------------ ---------- --------
BANK BALANCE 40,643 -- 4,564
DEPOSIT IN TRANSIT -- -- --
OUTSTANDING CHECKS -- -- --
-------- ---- 4,564
ADJUSTED BANK BALANCE 40,643 -- ------
======== ==== 10,394
BEGINNING CASH - PER BOOKS 64,994 -- ======
RECEIPTS 15,383 -- --
TRANSFERS BETWEEN ACCOUNTS 42,695 -- (5,830)
(WITHDRAWAL) CONTRIBUTION - BY INDIVIDUAL DEBTOR MFR-2 -- --
CHECKS / OTHER DISBURSEMENTS (82,429) -- --
-------- ---- ------
ENDING CASH - PER BOOKS 40,643 -- 4,564
======== ==== ======
<Caption>
BANK NAME REGIONS BANK PETTY CASH
- --------- ------------ -----------
ACCOUNT NUMBER # 200549541
ACCOUNT TYPE DEPOSITORY OTHER FUNDS TOTAL
------------ ----------- -------
BANK BALANCE -- 500 45,708
DEPOSIT IN TRANSIT -- -- --
OUTSTANDING CHECKS -- -- --
---- ---- -------
ADJUSTED BANK BALANCE -- 500 45,708
==== ==== =======
BEGINNING CASH - PER BOOKS -- 403 75,792
RECEIPTS -- -- 15,383
TRANSFERS BETWEEN ACCOUNTS -- 97 36,962
(WITHDRAWAL) CONTRIBUTION - BY INDIVIDUAL DEBTOR MFR-2 -- -- --
CHECKS / OTHER DISBURSEMENTS -- -- (82,429)
---- ---- -------
ENDING CASH - PER BOOKS -- 500 45,708
==== ==== =======
</Table>
MOR-8
CASE NAME: NATIONWIDE OF ALABAMA, INC. CASE NUMBER: 01-80032-G3-11
PAYMENTS TO INSIDERS AND PROFESSIONALS
OF THE TOTAL DISBURSEMENTS SHOWN FOR THE MONTH, LIST THE AMOUNT PAID TO INSIDERS
(AS DEFINED IN SECTION 101(30)(A)-(F) OF THE U. S. BANKRUPTCY CODE) AND THE
PROFESSIONALS. ALSO, FOR INSIDERS IDENTIFY THE TYPE OF COMPENSATION PAID (E.G.,
SALARY, COMMISSION, BONUS, ETC.) (ATTACH ADDITIONAL PAGES AS NECESSARY).
<Table>
<Caption>
MONTH MONTH MONTH MONTH MONTH
INSIDERS: NAME/POSITION/COMP TYPE JANUARY FEBRUARY MARCH APRIL MAY
- --------------------------------- ------- -------- ----- ----- -----
1. Charles N. Carney, Jr./President, Director -- -- -- -- --
2. Craig A. Reynolds/Secretary, Director -- -- -- -- --
3. Mary Morton/Assistant Secretary -- -- -- -- --
4. Kristi E. Gross/Assistant Secretary -- -- -- -- --
5. Richard Carver/VP Hstr General Holdings/Salary -- --
6. -- -- -- -- --
------- -------- ----- ----- ----
TOTAL INSIDERS (MOR-1) -- -- -- -- --
======= ======== ===== ===== ====
<Caption>
MONTH MONTH MONTH MONTH
INSIDERS: NAME/POSITION/COMP TYPE JUNE JULY AUGUST SEPTEMBER
- --------------------------------- ----- ----- ------ ---------
1. Charles N. Carney, Jr./President, Director -- -- -- --
2. Craig A. Reynolds/Secretary, Director -- -- -- --
3. Mary Morton/Assistant Secretary -- -- -- --
4. Kristi E. Gross/Assistant Secretary -- -- -- --
5. Richard Carver/VP Hstr General Holdings/Salary -- -- -- --
6. -- -- -- --
---- ---- ------ ---------
TOTAL INSIDERS (MOR-1) -- -- -- --
==== ==== ====== =========
</Table>
<Table>
<Caption>
MONTH MONTH MONTH MONTH MONTH
PROFESSIONALS/NAME/ORDER DATE JANUARY FEBRUARY MARCH APRIL MAY
- ----------------------------- ------- -------- ----- ----- -----
1. Floyd, Isgur, Rios & Warlich -- -- 54 765 2,156
2. Strategic Capital Corporation -- -- -- -- 3,476
3. -- -- -- -- --
4. -- -- -- -- --
5. -- -- -- -- --
6. -- -- -- -- --
------ ------ ----- ----- -----
TOTAL PROFESSIONALS (MOR-1) -- -- 54 765 5,632
====== ====== ===== ===== =====
<Caption>
MONTH MONTH MONTH MONTH
PROFESSIONALS/NAME/ORDER DATE JUNE JULY AUGUST AUGUST
- ----------------------------- ----- ----- ------ ------
1. Floyd, Isgur, Rios & Warlich 286
2. Strategic Capital Corporation 1,010 2,494 854 770
3. -- -- -- --
4. -- -- -- --
5. -- -- -- --
6. -- -- -- --
------ ------ ----- -----
TOTAL PROFESSIONALS (MOR-1) 1,296 2,494 854 770
====== ====== ===== =====
</Table>
MOR-9
UNITED STATES BANKRUPTCY COURT
SOUTHERN DISTRICT OF TEXAS
HOUSTON DIVISION
CASE NAME: NATIONWIDE HOUSING PROPERTIES, L. P. PETITION DATE: JANUARY 11, 2001
CASE NUMBER: 01-80029-G3-11
MONTHLY OPERATING REPORT SUMMARY FOR MONTH SEPTEMBER YEAR 2001
--------- ----
MONTH JANUARY FEBRUARY MARCH APRIL MAY
----- -------- -------- -------- -------- --------
REVENUES (MOR-6) -- -- -- -- --
INCOME BEFORE INT, DEPREC./TAX (MOR-6) (13) (13) 13,983 114,159 30,533
NET INCOME (LOSS) (MOR-6) (13) (10,055) 4,043 104,341 21,448
PAYMENTS TO INSIDERS (MOR-9) -- -- -- -- --
PAYMENTS TO PROFESSIONALS (MOR-9) -- -- -- 296 3,416
TOTAL DISBURSEMENTS (MOR-8) -- 13 -- 546 14,166
MONTH JUNE JULY AUGUST SEPTEMBER
----- -------- -------- -------- ---------
REVENUES (MOR-6) -- -- -- --
INCOME BEFORE INT, DEPREC./TAX (MOR-6) 34,568 41,389 72,114 5,940
NET INCOME (LOSS) (MOR-6) 26,667 38,418 65,546 2,873
PAYMENTS TO INSIDERS (MOR-9) -- -- -- --
PAYMENTS TO PROFESSIONALS (MOR-9) 864 1,173 526 392
TOTAL DISBURSEMENTS (MOR-8) 888 57,095 30,210 27,736
*** The ORIGINAL of this document MUST BE FILED with the United States
Bankruptcy Court and a COPY MUST BE SENT to the United States Trustee ***
- --------------------------------------------------------------------------------
REQUIRED INSURANCE MAINTAINED
AS OF SIGNATURE DATE
EXP.
DATE
----
CASUALTY YES (X) NO ( ) 06/30/02
LIABILITY YES (X) NO ( ) 06/30/02
VEHICLE YES (X) NO ( ) 06/30/02
WORKER'S YES (X) NO ( ) 03/27/02
OTHER - DIRECTOR/OFFICER YES (X) NO ( ) 01/23/02
- --------------------------------------------------------------------------------
ATTORNEY NAME:
FIRM: Floyd, Isgur, Rios & Warlich, P. C.
Address: 700 Louisiana, Suite 4600
Address:
City, State, ZIP: Houston, TX 77002-2732
Telephone: 713-222-1470
Fax: 713-222-1475
- --------------------------------------------------------------------------------
CIRCLE ONE
Are all accounts receivable being collected within terms? YES NO
Are all posted-petition liabilities, including taxes,
being paid within terms? YES NO
Have any pre-petition liabilities been paid? YES NO
IF so, describe.
--------------------------------------------------
- ------------------------------------------------------------------.
Are all funds received being deposited into DIP bank accounts? YES NO
Were any assets disposed of outside the normal course of business? YES NO
If so, describe.
--------------------------------------------------
- ------------------------------------------------------------------.
Are all U.S. Trustee Quarterly Fee Payments current? YES NO
What is the status of your Plan of Reorganization? PLAN OF REORGANIZATION
CONFIRMED BY COURT ON AUGUST 14, 2001. EFFECTIVE DATE OF REORGANIZATION -
OCTOBER 3, 2001.
I certify under penalty of perjury that the
following complete Monthly Operating Report
(MOR), consisting of MOR-1 through MOR-9 plus
attachments, is true and correct.
SIGNED /s/ CRAIG A. REYNOLDS
-------------------------------------
TITLE Vice President of Finance
--------------------------------------
MOR-1
CASE NAME: NATIONWIDE HOUSING PROPERTIES, L.P. CASE NUMBER: 01-80029-G3-11
COMPARATIVE BALANCE SHEETS
MONTH MONTH MONTH MONTH MONTH
ASSETS FILING DATE* JANUARY FEBRUARY MARCH APRIL MAY
------ ------------ --------- --------- --------- --------- ---------
CURRENT ASSETS
Cash 2,661 9,093 9,080 23,063 131,567 157,251
Accounts Receivable, Net -- -- -- -- -- --
Inventory: Lower of Cost or Market -- -- -- -- -- --
Prepaid Expenses -- -- -- -- -- --
Investments -- -- -- -- -- --
Other -- -- -- -- -- --
--------- --------- --------- --------- --------- ---------
TOTAL CURRENT ASSETS 2,661 9,093 9,080 23,063 131,567 157,251
========= ========= ========= ========= ========= =========
PROPERTY, PLANT&EQUIP, @ COST 3,515,165 3,515,165 3,515,165 3,515,165 3,515,165 3,515,165
Less Accumulated Depreciation -- -- -- -- -- --
--------- --------- --------- --------- --------- ---------
Net Book Value of PP & E 3,515,165 3,515,165 3,515,165 3,515,165 3,515,165 3,515,165
========= ========= ========= ========= ========= =========
OTHER ASSETS:
1. Tax Deposits -- -- -- -- -- --
2. Investments in Subs -- -- -- -- -- --
3. Deposits -- -- -- -- -- --
4. Interests in Insurance Policies -- -- -- -- -- --
5. Intercompany -- -- -- -- -- --
6. Deferred Tax Asset (1,433) (1,433) (1,433) (1,433) (1,433) --
--------- --------- --------- --------- --------- ---------
TOTAL ASSETS 3,516,393 3,522,825 3,522,812 3,536,796 3,645,299 3,672,416
========= ========= ========= ========= ========= =========
MONTH MONTH MONTH MONTH
ASSETS JUNE JULY AUGUST SEPTEMBER
------ --------- --------- --------- ---------
CURRENT ASSETS
Cash 191,889 184,694 193,836 172,599
Accounts Receivable, Net -- -- -- --
Inventory: Lower of Cost or Market -- -- -- --
Prepaid Expenses -- -- -- --
Investments -- -- -- --
Other -- -- -- --
--------- --------- --------- ---------
TOTAL CURRENT ASSETS 191,889 184,694 193,836 172,599
========= ========= ========= =========
PROPERTY, PLANT&EQUIP, @ COST 3,515,165 3,515,165 3,515,165 3,515,165
Less Accumulated Depreciation -- -- -- --
--------- --------- --------- ---------
Net Book Value of PP & E 3,515,165 3,515,165 3,515,165 3,515,165
========= ========= ========= =========
OTHER ASSETS:
1. Tax Deposits -- -- -- --
2. Investments in Subs -- -- -- --
3. Deposits -- -- -- --
4. Interests in Insurance Policies -- -- -- --
5. Intercompany 825 (1,026) (8,500) (7,200)
6. Deferred Tax Asset -- -- -- --
--------- --------- --------- ---------
TOTAL ASSETS 3,707,879 3,698,833 3,700,501 3,680,565
========= ========= ========= =========
* Per Schedules and Statement of Affairs
MOR-2
CASE NAME: NATIONWIDE HOUSING PROPERTIES, L.P. CASE NUMBER: 01-80029-G3-11
COMPARATIVE BALANCE SHEETS
LIABILITIES & OWNER'S MONTH MONTH MONTH MONTH MONTH
EQUITY FILING DATE* JANUARY FEBRUARY MARCH APRIL MAY
- --------------------- ------------ --------- --------- --------- --------- ---------
LIABILITIES:
POST-PETITION LIABILITIES (MOR-4) -- 10,042 19,982 34,145 928
PRE-PETITION LIABILITIES:
Notes Payable - Secured 1,359,953 1,366,385 1,366,385 1,403,185 1,403,185 1,442,070
Priority Debt -- -- -- -- -- --
Federal Income Tax -- -- -- -- -- --
FICA/Withholding -- -- -- -- -- --
Unsecured Debt 36,800 36,800 36,800 -- -- --
Intercompany 1,524,963 1,524,976 1,524,976 1,524,976 1,514,976 1,514,976
Other -- -- -- -- -- --
--------- --------- --------- --------- --------- ---------
TOTAL PRE-PETITION LIABILITIES 2,921,716 2,928,161 2,928,161 2,928,161 2,918,161 2,957,046
--------- --------- --------- --------- --------- ---------
TOTAL LIABILITIES 2,921,716 2,928,161 2,938,203 2,948,143 2,952,306 2,957,975
========= ========= ========= ========= ========= =========
OWNER'S EQUITY (DEFICIT):
Preferred Stock -- -- -- -- -- --
Common Stock -- -- -- -- -- --
ADDITIONAL PAID-IN CAPITAL -- -- -- -- -- --
RETAINED EARNINGS: FILING DATE 594,677 594,677 594,677 594,677 594,677 594,677
RETAINED EARNINGS: POST FILING DATE -- (13) (10,068) (6,025) 98,316 119,764
--------- --------- --------- --------- --------- ---------
TOTAL OWNER'S EQUITY (NET WORTH) 594,677 594,664 584,610 588,652 692,993 714,441
--------- --------- --------- --------- --------- ---------
TOTAL LIABILITIES &
OWNER'S EQUITY 3,516,393 3,522,825 3,522,812 3,536,796 3,645,299 3,672,416
========= ========= ========= ========= ========= =========
LIABILITIES & OWNER'S MONTH MONTH MONTH MONTH
EQUITY JUNE JULY AUGUST SEPTEMBER
- ---------------------- --------- --------- --------- ----------
LIABILITIES:
POST-PETITION LIABILITIES (MOR-4) 1,823 1,312 893 936
PRE-PETITION LIABILITIES:
Notes Payable - Secured 1,446,677 1,374,231 1,348,163 1,330,643
Priority Debt -- -- -- --
Federal Income Tax -- -- -- --
FICA/Withholding -- -- -- --
Unsecured Debt 3,295 29,815 29,815 24,483
Intercompany 1,514,976 1,514,976 1,514,976 1,514,976
Other
--------- --------- --------- ----------
TOTAL PRE-PETITION LIABILITIES 2,964,948 2,919,022 2,892,954 2,870,102
--------- --------- --------- ----------
TOTAL LIABILITIES 2,966,770 2,920,334 2,893,847 2,871,038
========= ========= ========= ==========
OWNER'S EQUITY (DEFICIT):
Preferred Stock -- -- -- --
Common Stock -- -- -- --
ADDITIONAL PAID-IN CAPITAL -- -- -- --
RETAINED EARNINGS: FILING DATE 594,677 594,677 594,677 594,677
RETAINED EARNINGS: POST FILING DATE 146,431 183,822 183,822 183,822
--------- --------- --------- ----------
TOTAL OWNER'S EQUITY (NET WORTH) 741,108 778,500 806,654 809,527
--------- --------- --------- ----------
TOTAL LIABILITIES &
OWNER'S EQUITY 3,707,879 3,698,833 3,700,501 3,680,565
========= ========= ========= ==========
* Per Schedules and Statement of Affairs
MOR-3
CASE NAME: NATIONWIDE HOUSING PROPERTIES, L.P. CASE NUMBER: 01-80029-G3-11
SCHEDULE OF POST-PETITION LIABILITIES
MONTH MONTH MONTH MONTH MONTH
JANUARY FEBRUARY MARCH APRIL MAY
--------- --------- --------- --------- ---------
TRADE ACCOUNTS PAYABLE -- 10,042 19,982 34,145 928
--------- --------- --------- --------- ---------
TAX PAYABLE
Federal Payroll Taxes -- -- -- -- --
State Payroll & Sales -- -- -- -- --
Ad Valorem Taxes -- -- -- -- --
Other Taxes -- -- -- -- --
--------- --------- --------- --------- ---------
TOTAL TAXES PAYABLE -- -- -- -- --
========= ========= ========= ========= =========
SECURED DEBT POST-PETITION -- -- -- -- --
ACCRUED INTEREST PAYABLE -- -- -- -- --
* ACCRUED PROFESSIONAL FEES -- -- -- -- --
OTHER ACCRUED LIABILITIES: --
1. -- -- -- -- --
2. -- -- -- -- --
3. -- -- -- -- --
--------- --------- --------- --------- ---------
TOTAL POST-PETITION LIABILITIES (MOR-3) -- 10,042 19,982 34,145 928
========= ========= ========= ========= =========
MONTH MONTH MONTH MONTH
JUNE JULY AUGUST SEPTEMBER
--------- --------- --------- ---------
TRADE ACCOUNTS PAYABLE 1,823 1,312 893 936
--------- --------- --------- ---------
TAX PAYABLE
Federal Payroll Taxes -- -- -- --
State Payroll & Sales -- -- -- --
Ad Valorem Taxes -- -- -- --
Other Taxes -- -- -- --
--------- --------- --------- ---------
TOTAL TAXES PAYABLE -- -- -- --
========= ========= ========= =========
SECURED DEBT POST-PETITION -- -- -- --
ACCRUED INTEREST PAYABLE -- -- -- --
* ACCRUED PROFESSIONAL FEES -- -- -- --
OTHER ACCRUED LIABILITIES: -- -- -- --
1. -- -- -- --
2. -- -- -- --
3. -- -- -- --
--------- --------- --------- ---------
TOTAL POST-PETITION LIABILITIES (MOR-3) 1,823 1,312 893 936
========= ========= ========= =========
* Payment Requires Court Approval.
MOR-4
CASE NAME: NATIONWIDE HOUSING PROPERTIES, L.P. CASE NUMBER: 01-80029-G3-11
AGING OF POST-PETITION LIABILITIES
MONTH OF SEPTEMBER 2001
DAYS TOTAL TRADE ACCTS FED TAXES STATE TAXES OTHER TAXES OTHER
- ----- ----- ----------- --------- ----------- ----------- -----
0-30 936 936 -- -- -- --
31-60 --
61-90 --
91 + --
TOTAL 936 936 -- -- -- --
AGING OF ACCOUNTS RECEIVABLE
MONTH JANUARY FEBRUARY MARCH APRIL MAY
----- --------- --------- --------- --------- ---------
0-30 DAYS -- -- -- -- --
31-60 DAYS -- -- -- -- --
61-90 DAYS -- -- -- -- --
91 + DAYS -- -- -- -- --
TOTAL -- -- -- -- --
MONTH JUNE JULY AUGUST SEPTEMBER
----- --------- --------- --------- ---------
0-30 DAYS -- -- -- --
31-60 DAYS -- -- -- --
61-90 DAYS -- -- -- --
91 + DAYS -- -- -- --
TOTAL -- -- -- --
MOR-5
CASE NAME: NATIONWIDE HOUSING PROPERTIES, L.P. CASE NUMBER: 01-80029-G3-11
STATEMENT OF INCOME (LOSS)
MONTH JANUARY FEBRUARY MARCH APRIL MAY
----- --------- --------- --------- --------- ---------
REVENUES (MOR-1) -- -- -- -- --
TOTAL COST OF REVENUES -- -- -- -- --
GROSS PROFIT -- -- -- -- --
OPERATING EXPENSES:
Selling & Marketing -- -- (13,983) (119,050) (29,100)
General & Administrative 13 13 -- -- --
Insiders Compensation -- -- -- -- --
Professional Fees -- -- -- 4,891 --
Other (attach list) -- -- -- -- (1,433)
--------- --------- --------- --------- ---------
TOTAL OPERATING EXPENSES 13 13 (13,983) (114,159) (30,533)
========= ========= ========= ========= =========
INCOME BEFORE INT, DEPR/TAX (MOR-1) (13) (13) 13,983 114,159 30,533
========= ========= ========= ========= =========
INTEREST EXPENSE -- 10,042 9,940 9,818 9,085
DEPRECIATION -- -- -- -- --
OTHER (INCOME) EXPENSE* -- -- -- -- --
OTHER ITEMS** -- -- -- -- --
--------- --------- --------- --------- ---------
TOTAL INT, DEPR & OTHER ITEMS -- 10,042 9,940 9,818 9,085
--------- --------- --------- --------- ---------
NET INCOME BEFORE TAXES (13) (10,055) 4,043 104,341 21,448
========= ========= ========= ========= =========
FEDERAL INCOME TAXES -- -- -- -- --
--------- --------- --------- --------- ---------
NET INCOME (LOSS) (MOR-1) (13) (10,055) 4,043 104,341 21,448
========= ========= ========= ========= =========
MONTH JUNE JULY AUGUST SEPTEMBER FILING TO DATE
----- --------- --------- --------- --------- --------------
REVENUES (MOR-1) -- -- -- -- --
TOTAL COST OF REVENUES -- -- -- -- --
GROSS PROFIT -- -- -- -- --
OPERATING EXPENSES:
Selling & Marketing (36,313) (41,389) (78,533) (5,380) (318,368)
General & Administrative -- (658) -- -- (645)
Insiders Compensation -- -- -- -- --
Professional Fees 1,745 658 6,419 -- 13,713
Other (attach list) -- -- -- (560) (1,433)
--------- --------- --------- --------- --------
TOTAL OPERATING EXPENSES (34,568) (41,389) (72,114) (5,940) (306,733)
========= ========= ========= ========= ========
INCOME BEFORE INT, DEPR/TAX (MOR-1) 34,568 41,389 72,114 5,940 306,733
========= ========= ========= ========= ========
INTEREST EXPENSE 7,901 2,971 6,568 3,067 56,325
DEPRECIATION -- -- -- -- --
OTHER (INCOME) EXPENSE* -- -- -- -- --
OTHER ITEMS** -- -- -- -- --
--------- --------- --------- --------- --------
TOTAL INT, DEPR & OTHER ITEMS 7,901 2,971 6,568 3,067 56,325
--------- --------- --------- --------- --------
NET INCOME BEFORE TAXES 26,667 38,418 65,546 2,873 250,408
========= ========= ========= ========= ========
FEDERAL INCOME TAXES -- -- -- -- --
--------- --------- --------- --------- --------
NET INCOME (LOSS) (MOR-1) 26,667 38,418 65,546 2,873 250,408
========= ========= ========= ========= ========
Accrual Accounting Required, Otherwise Footnote With Explanation
* Footnote Mandatory
** Unusual and/or infrequent item(s) outside the ordinary course of business;
requires footnote
MOR-6
CASE NAME: NATIONWIDE HOUSING PROPERTIES, L.P. CASE NUMBER: 01-80029-G3-11
MONTH MONTH MONTH MONTH MONTH
CASH RECEIPTS AND DISBURSEMENTS JANUARY FEBRUARY MARCH APRIL MAY
- ------------------------------- --------- --------- --------- --------- ---------
1. CASH - BEGINNING OF MONTH 2,661 9,093 9,080 23,063 131,567
RECEIPTS:
2. CASH SALES -- -- -- 109,050 --
3. COLLECTION OF ACCOUNTS RECEIVABLE -- -- -- -- 39,850
4. LOANS & ADVANCES -- -- 13,983 -- --
5. SALE OF ASSETS -- -- -- --
6. TAX REFUND 6,432 -- -- --
7. OTHER (ATTACH LIST) -- -- -- --
--------- --------- --------- --------- ---------
TOTAL RECEIPTS 6,432 -- 13,983 109,050 39,850
========= ========= ========= ========= =========
(Withdrawal) Contribution by Individual Debtor MFR-2*
DISBURSEMENTS:
8. NET PAYROLL -- -- -- -- --
9. PAYROLL TAXES PAID -- -- -- -- --
10. SALES, USE & OTHER TAXES PAID -- -- -- -- --
11. SECURED / RENTAL / LEASES -- -- -- -- 10,500
12. UTILITIES -- -- -- -- --
13. INSURANCE -- -- -- -- --
14. INVENTORY PURCHASES -- -- -- -- --
15. VEHICLE EXPENSES -- -- -- -- --
16. TRAVEL ENTERTAINMENT -- -- --
17. REPAIRS, MAINTENANCE & SUPPLIES -- -- -- -- --
18. ADMINISTRATIVE & SELLING -- 13 -- -- --
19. INTERCOMPANY -- -- -- -- --
--------- --------- --------- --------- ---------
TOTAL DISBURSEMENTS FROM OPERATIONS -- 13 -- -- 10,500
========= ========= ========= ========= =========
20. PROFESSIONAL FEES -- -- -- 296 3,416
21. U.S. TRUSTEE FEES -- -- -- 250 250
22. OTHER REORGANIZATION EXPENSES (ATTACH LIST) -- -- --
--------- --------- --------- --------- ---------
TOTAL DISBURSEMENTS -- 13 -- 546 14,166
========= ========= ========= ========= =========
23. NET CASH FLOW 6,432 (13) 13,983 108,504 25,684
--------- --------- --------- --------- ---------
24. CASH - END OF MONTH (MOR-2) 9,093 9,080 23,063 131,567 157,251
========= ========= ========= ========= =========
MONTH MONTH MONTH MONTH FILING TO
CASH RECEIPTS AND DISBURSEMENTS JUNE JULY AUGUST SEPTEMBER DATE
- ------------------------------- --------- --------- --------- --------- ---------
1. CASH - BEGINNING OF MONTH 157,251 191,889 184,694 193,836 9,093
RECEIPTS:
2. CASH SALES -- -- -- -- 109,050
3. COLLECTION OF ACCOUNTS RECEIVABLE 37,400 49,900 39,351 6,499 173,000
4. LOANS & ADVANCES -- -- -- -- 13,983
5. SALE OF ASSETS -- -- -- -- --
6. TAX REFUND -- -- -- -- --
7. OTHER (ATTACH LIST) -- -- -- -- --
--------- --------- --------- --------- --------
TOTAL RECEIPTS 37,400 49,900 39,351 6,499 296,033
========= ========= ========= ========= ========
(Withdrawal) Contribution by Individual Debtor MFR-2*
DISBURSEMENTS:
8. NET PAYROLL -- -- -- -- --
9. PAYROLL TAXES PAID -- -- -- -- --
10. SALES, USE & OTHER TAXES PAID 24 24
11. SECURED / RENTAL / LEASES -- -- -- 18,719 29,219
12. UTILITIES -- 17 17 125 159
13. INSURANCE -- -- -- --
14. INVENTORY PURCHASES -- 49,371 29,666 79,037
15. VEHICLE EXPENSES -- -- -- --
16. TRAVEL ENTERTAINMENT -- -- -- --
17. REPAIRS, MAINTENANCE & SUPPLIES -- -- -- --
18. ADMINISTRATIVE & SELLING -- -- -- 13
19. INTERCOMPANY 1,875 1,946 -- 8,500 12,321
--------- --------- --------- --------- --------
TOTAL DISBURSEMENTS FROM OPERATIONS 1,899 51,334 29,683 27,344 120,774
========= ========= ========= ========= ========
20. PROFESSIONAL FEES 864 5,103 526 10,205
21. U.S. TRUSTEE FEES -- -- -- 500
22. OTHER REORGANIZATION EXPENSES (ATTACH LIST) -- 658 -- 392 1,050
--------- --------- --------- --------- --------
TOTAL DISBURSEMENTS 2,763 57,095 30,210 27,736 132,529
========= ========= ========= ========= ========
23. NET CASH FLOW 34,637 (7,195) 9,141 (21,237) 163,504
--------- --------- --------- --------- --------
24. CASH - END OF MONTH (MOR-2) 191,889 184,694 193,836 172,599 172,599
========= ========= ========= ========= ========
* applies to Individual debtor's only.
MOR-7
CASE NAME: NATIONWIDE HOUSING PROPERTIES, L.P. CASE NUMBER: 01-80029-G3-11
CASH ACCOUNT RECONCILIATION
MONTH OF SEPTEMBER 2001
BANK NAME Bank of America
- --------- ---------------
ACCOUNT NUMBER # 3755500182
ACCOUNT TYPE OPERATING TOTAL
- ------------ --------- ---------
BANK BALANCE 172,599 172,599
DEPOSIT IN TRANSIT -- --
OUTSTANDING CHECKS -- --
--------- ---------
ADJUSTED BANK BALANCE 172,599 172,599
========= =========
BEGINNING CASH - PER BOOKS 193,836 193,836
RECEIPTS 6,499 6,499
TRANSFERS BETWEEN ACCOUNTS -- --
(WITHDRAWAL) CONTRIBUTION - BY INDIVIDUAL DEBTOR MFR-2 -- --
CHECKS / OTHER DISBURSEMENTS (27,736) (27,736)
--------- ---------
ENDING CASH - PER BOOKS 172,599 172,599
========= =========
MOR-8
CASE NAME: NATIONWIDE HOUSING PROPERTIES, L.P. CASE NUMBER: 01-80029-G3-11
PAYMENTS TO INSIDERS AND PROFESSIONALS
OF THE TOTAL DISBURSEMENTS SHOWN FOR THE MONTH, LIST THE AMOUNT PAID TO INSIDERS
(AS DEFINED IN SECTION 101(30)(A)-(F) OF THE U. S. BANKRUPTCY CODE) AND THE
PROFESSIONALS. ALSO, FOR INSIDERS IDENTIFY THE TYPE OF COMPENSATION PAID (E.G.,
SALARY, COMMISSION, BONUS, ETC.) (ATTACH ADDITIONAL PAGES AS NECESSARY).
MONTH MONTH MONTH MONTH MONTH
INSIDERS: NAME/POSITION/COMP TYPE JANUARY FEBRUARY MARCH APRIL MAY
- --------------------------------- --------- --------- --------- -------- -------
1. Finis F. Teeter/President HSTR General Holdings -- -- -- -- --
2. RONALD MCCASLIN/VP, DIRECTOR HSTR GENERAL HOLDINGS -- -- -- -- --
3. CHARLES N. CARNEY, JR./VP, DIRECTOR HSTR GENERAL HOLDINGS -- -- -- -- --
4. RICHARD A. CARVER/VP HSTR GENERAL HOLDINGS -- -- -- -- --
5. JACKIE HOLLAND/VP HSTR GENERAL HOLDINGS -- -- -- -- --
6. CRAIG A. REYNOLDS/VP, SECRETARY HSTR GENERAL HOLDINGS -- -- -- -- --
7. KRISTI E. GROSS/ASST SECRETARY HSTR GENERAL HOLDINGS -- -- -- -- --
8. MARY MORTON/ASST SECRETARY HSTR GENERAL HOLDINGS -- -- -- -- --
9. DENNIS L. JONES/PRESIDENT, DIRECTOR HSTR RETAIL HOLDINGS -- -- -- -- --
10. RONALD KRUEGER/VP, TREASURER, DIRECTOR HSTR RETAIL HOLD -- -- -- -- --
11. ROBERT GRIER/SECRETARY, DIRECTOR HSTR RETAIL HOLD -- -- -- -- --
12. BETH L. PEOPLES/ASST SECRETARY, ASST TREASURER HSTR RET HOLD -- -- -- -- --
--------- --------- --------- -------- -------
TOTAL INSIDERS (MOR-1) -- -- -- -- --
========= ========= ========= ======== =======
MONTH MONTH MONTH MONTH
INSIDERS: NAME/POSITION/COMP TYPE JUNE JULY AUGUST SEPTEMBER
- --------------------------------- --------- --------- --------- ---------
1. Finis F. Teeter/President HSTR General Holdings -- -- -- --
2. RONALD MCCASLIN/VP, DIRECTOR HSTR GENERAL HOLDINGS -- -- -- --
3. CHARLES N. CARNEY, JR./VP, DIRECTOR HSTR GENERAL HOLDINGS -- -- -- --
4. RICHARD A. CARVER/VP HSTR GENERAL HOLDINGS -- -- -- --
5. JACKIE HOLLAND/VP HSTR GENERAL HOLDINGS -- -- -- --
6. CRAIG A. REYNOLDS/VP, SECRETARY HSTR GENERAL HOLDINGS -- -- -- --
7. KRISTI E. GROSS/ASST SECRETARY HSTR GENERAL HOLDINGS -- -- -- --
8. MARY MORTON/ASST SECRETARY HSTR GENERAL HOLDINGS -- -- -- --
9. DENNIS L. JONES/PRESIDENT, DIRECTOR HSTR RETAIL HOLDINGS -- -- -- --
10. RONALD KRUEGER/VP, TREASURER, DIRECTOR HSTR RETAIL HOLD -- -- -- --
11. ROBERT GRIER/SECRETARY, DIRECTOR HSTR RETAIL HOLD -- -- -- --
12. BETH L. PEOPLES/ASST SECRETARY, ASST TREASURER HSTR RET HOLD -- -- -- --
--------- --------- --------- ---------
TOTAL INSIDERS (MOR-1) -- -- -- --
========= ========= ========= =========
MONTH MONTH MONTH MONTH MONTH
PROFESSIONALS/NAME/ORDER DATE JANUARY FEBRUARY MARCH APRIL MAY
- ----------------------------- --------- --------- --------- --------- ---------
1. Floyd, Isgur, Rios & Warlich -- -- -- 296 1,442
2. Strategic Capital Corporation -- -- -- -- 1,974
3. -- -- -- -- --
4. -- -- -- -- --
5. -- -- -- -- --
6. -- -- -- -- --
--------- --------- --------- --------- ---------
TOTAL PROFESSIONALS (MOR-1) -- -- -- 296 3,416
========= ========= ========= ========= =========
MONTH MONTH MONTH MONTH
PROFESSIONALS/NAME/ORDER DATE JUNE JULY AUGUST AUGUST
- ----------------------------- --------- --------- --------- ---------
1. Floyd, Isgur, Rios & Warlich 274 -- 190
2. Strategic Capital Corporation 590 1,173 336 392
3. -- -- -- --
4. -- -- -- --
5. -- -- -- --
6. -- -- -- --
--------- --------- --------- ---------
TOTAL PROFESSIONALS (MOR-1) 864 1,173 526 392
========= ========= ========= =========
MOR-9
UNITED STATES BANKRUPTCY COURT
SOUTHERN DISTRICT OF TEXAS
HOUSTON DIVISION
CASE NAME: NATIONWIDE HOUSING SYSTEMS, L. P. PETITION DATE: JANUARY 11, 2001
CASE NUMBER: 01-80030-G3-11
MONTHLY OPERATING REPORT SUMMARY FOR MONTH SEPTEMBER YEAR 2001
--------- ----
MONTH JANUARY FEBRUARY MARCH APRIL MAY
----- --------- --------- ---------- --------- ----------
REVENUES (MOR-6) 417,178 3,324,980 7,399,242 8,604,669 8,779,028
INCOME BEFORE INT, DEPREC./TAX (MOR-6) (481,677) (122,537) (822,887) 181,970 (3,206,388)
NET INCOME (LOSS) (MOR-6) (1,134,008) (476,652) (1,044,722) 14,379 (3,406,604)
PAYMENTS TO INSIDERS (MOR-9) 11,538 23,899 36,450 21,075 19,998
PAYMENTS TO PROFESSIONALS (MOR-9) -- -- 1,088 8,380 9,136
TOTAL DISBURSEMENTS (MOR-8) 932,864 2,695,809 3,646,300 3,310,467 4,590,132
MONTH JUNE JULY AUGUST SEPTEMBER
----- --------- --------- --------- ---------
REVENUES (MOR-6) 8,903,440 6,576,809 5,937,602 6,891,386
INCOME BEFORE INT, DEPREC./TAX (MOR-6) 768,419 (710,386) (123,646) 240,496
NET INCOME (LOSS) (MOR-6) 582,169 (911,228) (343,731) 29,005
PAYMENTS TO INSIDERS (MOR-9) 20,192 18,462 27,692 18,462
PAYMENTS TO PROFESSIONALS (MOR-9) 4,660 5,475 1,764 2,893
TOTAL DISBURSEMENTS (MOR-8) 4,323,368 4,130,404 3,753,740 4,245,596
*** The ORIGINAL of this document MUST BE FILED with the United States
Bankruptcy Court and a COPY MUST BE SENT to the United States Trustee ***
- --------------------------------------------------------------------------------
REQUIRED INSURANCE MAINTAINED
AS OF SIGNATURE DATE
EXP.
DATE
----
CASUALTY YES (X) NO ( ) 06/30/02
LIABILITY YES (X) NO ( ) 06/30/02
VEHICLE YES (X) NO ( ) 06/30/02
WORKER'S YES (X) NO ( ) 03/27/02
OTHER - DIRECTOR/OFFICER YES (X) NO ( ) 01/23/02
- --------------------------------------------------------------------------------
ATTORNEY NAME:
FIRM: Floyd, Isgur, Rios & Warlich, P. C.
Address: 700 Louisiana, Suite 4600
Address:
City, State, ZIP: Houston, TX 77002-2732
Telephone: 713-222-1470
Fax: 713-222-1475
- --------------------------------------------------------------------------------
CIRCLE ONE
Are all accounts receivable being collected within terms? YES NO
Are all posted-petition liabilities, including taxes,
being paid within terms? YES NO
Have any pre-petition liabilities been paid? YES NO
If so, describe. PURSUANT TO COURT ORDER AUTHORIZING PAYMENTS OF
PRE-PETITION WAGES, SALARIES, COMMISSIONS AND COMPENSATION SIGNED
JANUARY 11, 2001.
Are all funds received being deposited into DIP bank accounts? YES NO
Were any assets disposed of outside the normal course of business? YES NO
If so, describe. PROPERTY, PLANT & EQUIPMENT AND OTHER ASSET SALES
MADE PURSUANT TO VARIOUS COURT ORDERS AUTHORIZING SUCH ASSET SALES.
Are all U.S. Trustee Quarterly Fee Payments current? YES NO
What is the status of your Plan of Reorganization? PLAN OF REORGANIZATION
CONFIRMED BY COURT ON AUGUST 14, 2001. EFFECTIVE DATE OF REORGANIZATION -
OCTOBER 3, 2001.
I certify under penalty of perjury that the
following complete Monthly Operating Report
(MOR), consisting of MOR-1 through MOR-9 plus
attachments, is true and correct.
SIGNED /s/ CRAIG A. REYNOLDS
-------------------------------------
TITLE Vice President of Finance
--------------------------------------
MOR-1
CASE NAME: NATIONWIDE HOUSING SYSTEMS, L.P. CASE NUMBER: 01-80030-G3-11
COMPARATIVE BALANCE SHEETS
MONTH MONTH MONTH MONTH MONTH
ASSETS FILING DATE* JANUARY FEBRUARY MARCH APRIL MAY
------ ------------ ---------- ---------- ---------- ---------- ----------
CURRENT ASSETS
Cash 528,790 1,294,818 421,289 1,068,687 1,842,942 1,847,481
Accounts Receivable, Net 10,042,463 6,712,033 3,918,996 2,955,408 3,446,544 2,548,145
Inventory: Lower of Cost or Market 37,147,332 37,909,800 37,331,960 33,369,072 29,887,534 26,062,278
Prepaid Expenses 750,608 312,547 220,639 283,574 275,528 158,727
Investments -- -- -- -- -- --
Other -- -- -- -- -- --
----------- ---------- ---------- ---------- ---------- ----------
TOTAL CURRENT ASSETS 48,469,194 46,229,198 41,892,884 37,676,742 35,452,548 30,616,632
=========== ========== ========== ========== ========== ==========
PROPERTY, PLANT&EQUIP, @ COST 19,770,898 19,737,835 19,693,822 19,689,548 19,184,916 18,783,552
Less Accumulated Depreciation 11,847,010 12,068,621 10,043,866 10,261,498 10,187,725 10,213,114
Less Impairment of Assets 2,631,581 2,631,581 2,264,780 2,479,074
----------- ---------- ---------- ---------- ---------- ----------
Net Book Value of PP & E 7,923,888 7,669,214 7,018,375 6,796,469 6,732,412 6,091,363
=========== ========== ========== ========== ========== ==========
OTHER ASSETS:
1. Tax Deposits -- -- -- -- -- --
2. Investments in Subs 894,484 741,103 717,205 717,205 717,205 696,204
3. Deposits 55,263 55,263 56,463 69,638 69,638 48,618
4. Interests in Insurance Policies -- -- -- -- -- --
5. Note Receivable 265,658 216,389 133,138 175,559 173,141 162,309
6. Deferred Tax Asset -- -- -- -- -- --
7. Goodwill 373,125 368,909 -- -- -- --
8. Other Assets 1,799,655 1,799,238 1,785,485 1,785,485 1,785,485 --
9. Intercompany Non-filing (2,684) 8,635 47,370 47,670 47,711 900
9. Intercompany 7,317,858 7,488,797 7,519,023 7,606,293 7,042,714 7,042,714
10. Post Petition Intercompany -- -- 207,831 257,463 148,186 --
----------- ---------- ---------- ---------- ---------- ----------
TOTAL ASSETS 67,096,439 64,576,745 59,377,774 55,132,523 52,169,038 44,658,740
=========== ========== ========== ========== ========== ==========
MONTH MONTH MONTH MONTH
ASSETS JUNE JULY AUGUST SEPTEMBER
------ ---------- ---------- ---------- ----------
CURRENT ASSETS
Cash 2,452,190 1,916,279 1,508,830 1,231,207
Accounts Receivable, Net 2,892,989 2,674,077 1,676,786 2,014,210
Inventory: Lower of Cost or Market 24,503,795 23,608,169 23,831,085 25,099,761
Prepaid Expenses 144,548 658,493 619,044 631,211
Investments -- -- -- --
Other -- -- -- --
---------- ---------- ---------- ----------
TOTAL CURRENT ASSETS 29,993,521 28,857,019 27,635,745 28,976,389
========== ========== ========== ==========
PROPERTY, PLANT&EQUIP, @ COST 18,045,506 17,413,876 16,401,163 17,270,234
Less Accumulated Depreciation 10,116,216 10,089,067 9,754,969 10,474,429
Less Impairment of Assets 1,987,657 1,537,462 999,872 950,058
---------- ---------- ---------- ----------
Net Book Value of PP & E 5,941,633 5,787,346 5,646,322 5,845,747
========== ========== ========== ==========
OTHER ASSETS:
1. Tax Deposits -- -- -- --
2. Investments in Subs 692,933 692,933 692,933 745,183
3. Deposits 48,109 44,843 44,843 52,903
4. Interests in Insurance Policies -- -- -- --
5. Note Receivable 211,878 209,631 206,435 204,952
6. Deferred Tax Asset -- -- -- --
7. Goodwill -- -- -- --
8. Other Assets -- -- -- --
9. Intercompany Non-filing -- -- -- --
9. Intercompany 7,042,714 7,042,714 7,042,714 7,042,714
10. Post Petition Intercompany -- -- -- --
---------- ---------- ---------- ----------
TOTAL ASSETS 43,930,788 42,634,486 41,268,993 42,867,889
========== ========== ========== ==========
* Per Schedules and Statement of Affairs
MOR-2
CASE NAME: NATIONWIDE HOUSING SYSTEMS, L.P. CASE NUMBER: 01-80030-G3-11
COMPARATIVE BALANCE SHEETS
LIABILITIES & OWNER'S MONTH MONTH MONTH MONTH MONTH
EQUITY FILING DATE* JANUARY FEBRUARY MARCH APRIL MAY
- --------------------- ------------ ---------- ---------- ---------- ---------- ----------
LIABILITIES:
POST-PETITION LIABILITIES (MOR-4) 3,208,381 6,834,521 7,993,929 9,821,160 10,465,406
---------- ---------- ---------- ---------- ----------
PRE-PETITION LIABILITIES:
Notes Payable - Secured 39,051,459 35,938,370 33,418,647 28,591,846 23,899,941 17,937,829
Priority Debt 1,696,831 1,143,283 776,800 725,368 691,935 642,036
Federal Income Tax (876,237) (876,237) (876,237) (876,237) (876,237) --
FICA/Withholding -- -- -- -- -- --
Unsecured Debt 9,329,435 8,402,005 2,939,752 3,458,048 3,378,291 3,766,125
Other -- -- -- -- -- --
---------- ---------- ---------- ---------- ---------- ----------
TOTAL PRE-PETITION LIABILITIES 49,201,487 44,607,421 36,258,962 31,899,025 27,093,930 22,345,990
---------- ---------- ---------- ---------- ---------- ----------
TOTAL LIABILITIES 49,201,487 47,815,801 43,093,482 39,892,954 36,915,090 32,811,396
========== ========== ========== ========== ========== ==========
OWNER'S EQUITY (DEFICIT):
Preferred Stock -- -- -- -- --
Common Stock 50,000 50,000 50,000 50,000 50,000 50,000
ADDITIONAL PAID-IN CAPITAL 1,137,516 1,137,516 1,137,516 1,137,516 1,137,516 1,137,516
RETAINED EARNINGS: Filing Date 16,707,435 16,707,435 16,707,435 16,707,435 16,707,435 16,707,435
RETAINED EARNINGS: Post Filing Date -- (1,134,008) (1,610,660) (2,655,382) (2,641,003) (6,047,607)
---------- ---------- ---------- ---------- ---------- ----------
TOTAL OWNER'S EQUITY (NET WORTH) 17,894,951 16,760,943 16,284,291 15,239,570 15,253,948 11,847,345
---------- ---------- ---------- ---------- ---------- ----------
TOTAL LIABILITIES &
OWNER'S EQUITY 67,096,439 64,576,745 59,377,774 55,132,523 52,169,038 44,658,740
========== ========== ========== ========== ========== ==========
LIABILITIES & OWNER'S MONTH MONTH MONTH MONTH
EQUITY JUNE JULY AUGUST SEPTEMBER
- --------------------- ----------- ----------- ----------- -----------
LIABILITIES:
POST-PETITION LIABILITIES (MOR-4) 13,398,325 15,551,469 17,183,134 19,537,443
----------- ----------- ----------- -----------
PRE-PETITION LIABILITIES:
Notes Payable - Secured 13,381,292 11,011,542 8,536,432 7,744,469
Priority Debt 616,872 598,995 596,612 595,314
Federal Income Tax -- -- -- --
FICA/Withholding -- -- -- --
Unsecured Debt 4,104,795 3,953,895 3,779,646 3,788,488
Other -- -- -- --
----------- ----------- ----------- -----------
TOTAL PRE-PETITION LIABILITIES 18,102,959 15,564,432 12,912,690 12,128,272
----------- ----------- ----------- -----------
TOTAL LIABILITIES 31,501,284 31,115,902 30,095,824 31,665,715
=========== =========== =========== ===========
OWNER'S EQUITY (DEFICIT):
Preferred Stock
Common Stock 50,000 50,000 50,000 50,000
ADDITIONAL PAID-IN CAPITAL 1,137,516 1,137,516 1,137,516 1,137,516
RETAINED EARNINGS: Filing Date 16,707,435 16,707,435 16,707,435 16,707,435
RETAINED EARNINGS: Post Filing Date (5,465,438) (6,376,366) (6,376,366) (6,376,366)
----------- ----------- ----------- -----------
TOTAL OWNER'S EQUITY (NET WORTH) 12,429,513 11,518,585 11,173,169 11,202,174
----------- ----------- ----------- -----------
TOTAL LIABILITIES &
OWNER'S EQUITY 43,930,798 42,634,486 41,268,993 42,867,889
=========== =========== =========== ===========
* Per Schedules and Statement of Affairs
MOR-3
CASE NAME: NATIONWIDE HOUSING SYSTEMS, L.P. CASE NUMBER: 01-80030-G3-11
SCHEDULE OF POST-PETITION LIABILITIES
MONTH MONTH MONTH MONTH MONTH
JANUARY FEBRUARY MARCH APRIL MAY
--------- --------- --------- --------- ----------
TRADE ACCOUNTS PAYABLE 1,044,829 3,914,832 3,945,750 4,366,632 2,928,866
--------- --------- --------- --------- ----------
TAX PAYABLE
Federal Payroll Taxes -- 126,904 176,145 50,369 115,838
State Payroll & Sales 5,304 17,894 30,339 9,456 9,146
Ad Valorem Taxes 32,985 58,972 41,495 65,221 85,823
Other Taxes -- -- -- -- --
--------- --------- --------- --------- ----------
TOTAL TAXES PAYABLE 38,289 203,770 247,979 125,047 210,807
========= ========= ========= ========= ==========
SECURED DEBT POST-PETITION 1,379,701 1,979,555 2,897,783 4,502,223 6,311,323
ACCRUED INTEREST PAYABLE -- -- -- -- --
* ACCRUED PROFESSIONAL FEES -- -- -- 70,975 85,123
OTHER ACCRUED LIABILITIES:
1. Incentive Compensation 11,726 -- -- -- --
2. Salaries 65,073 657,047 769,452 619,853 606,265
3. Legal Fees 19,894 37,894 52,975 -- --
4. Deposits ** See Trade A/P -- -- -- --
5. Unearned Revenue 41,424 79,989 136,429 194,547
6. Associates Advances** See Trade A/P -- -- --
7. Intercompany 648,868 -- -- -- 128,475
--------- --------- --------- --------- ----------
TOTAL POST-PETITION LIABILITIES (MOR-3) 3,208,381 6,834,521 7,993,929 9,821,159 10,465,406
========= ========= ========= ========= ==========
MONTH MONTH MONTH MONTH
JUNE JULY AUGUST SEPTEMBER
---------- ---------- ---------- ----------
TRADE ACCOUNTS PAYABLE 3,410,096 3,597,318 3,411,488 3,441,244
---------- ---------- ---------- ----------
TAX PAYABLE
Federal Payroll Taxes 139,370 115,878 200,789 210,785
State Payroll & Sales 1,517 58 116 116
Ad Valorem Taxes 106,866 124,457 153,208 201,908
Other Taxes -- -- -- --
---------- ---------- ---------- ----------
TOTAL TAXES PAYABLE 247,753 240,393 354,113 412,809
========== ========== ========== ==========
SECURED DEBT POST-PETITION 8,487,632 10,519,585 12,469,203 14,239,830
ACCRUED INTEREST PAYABLE -- -- -- --
* ACCRUED PROFESSIONAL FEES 80,632 97,567 106,382 129,566
OTHER ACCRUED LIABILITIES:
1. Incentive Compensation -- -- -- --
2. Salaries 741,137 486,456 319,486 370,597
3. Legal Fees -- -- -- --
4. Deposits ** See Trade A/P --
5. Unearned Revenue 276,033 270,225 319,347 336,765
6. Associates Advances** See Trade A/P -- -- -- --
7. Intercompany 155,043 339,925 203,114 606,633
---------- ---------- ---------- ----------
TOTAL POST-PETITION LIABILITIES (MOR-3) 13,398,325 15,551,469 17,183,134 19,537,443
========== ========== ========== ==========
* Payment Requires Court Approval.
mor-4
CASE NAME: NATIONWIDE HOUSING SYSTEMS, L.P. CASE NUMBER: 01-80030-G3-11
AGING OF POST-PETITION LIABILITIES
MONTH OF SEPTEMBER 2001
AD-VALOREM,
DAYS TOTAL TRADE ACCTS FED TAXES STATE TAXES OTHER TAXES OTHER
---- ---------- ---------- --------- ----------- ----------- ----------
0-30 19,537,443 3,441,244 210,785 116 201,908 15,683,391
31-60 --
61-90 --
91 + --
TOTAL 19,537,443 3,441,244 210,785 116 201,908 15,683,391
AGING OF ACCOUNTS RECEIVABLE
MONTH JANUARY FEBRUARY MARCH APRIL MAY
----- --------- --------- --------- --------- ---------
0-30 DAYS 261,371 120,896 -- 491,136 638,476
31-60 DAYS 2,364,045 1,376,116 -- -- 147,341
61-90 DAYS 1,727,237 20,060 275,223
91 + DAYS 2,359,381 2,401,923 2,680,185 2,955,408 1,762,328
TOTAL 6,712,033 3,918,996 2,955,408 3,446,544 2,548,145
MONTH JUNE JULY AUGUST SEPTEMBER
----- --------- --------- --------- ---------
0-30 DAYS -- -- -- --
31-60 DAYS -- -- -- --
61-90 DAYS -- -- -- --
91 + DAYS 2,892,989 2,674,077 1,676,786 2,014,210
TOTAL 2,892,989 2,674,077 1,676,786 2,014,210
MOR-5
CASE NAME: NATIONWIDE HOUSING SYSTEMS, L.P. CASE NUMBER: 01-80030-G3-11
STATEMENT OF INCOME (LOSS)
MONTH JANUARY FEBRUARY MARCH APRIL MAY
----- ---------- ---------- ---------- ---------- ----------
REVENUES (MOR-1) 417,178 3,324,980 7,399,242 8,604,669 8,779,028
TOTAL COST OF REVENUES 310,660 3,525,686 6,427,716 7,185,566 6,418,981
GROSS PROFIT 106,518 (200,706) 971,526 1,419,103 2,360,047
OPERATING EXPENSES:
Selling & Marketing 342,967 48,370 950,514 771,455 790,628
General & Administrative 233,690 1,076,141 269,589 462,921 739,765
Insiders Compensation 11,538 23,889 36,450 22,075 19,998
Professional Fees -- -- 32,910 59,171 31,940
Correction of Liabilities (1,226,569) 504,950 (78,489) 3,984,104
Other (attach list) -- -- -- -- --
---------- ---------- ---------- ---------- ----------
TOTAL OPERATING EXPENSES 588,195 (78,169) 1,794,413 1,237,133 5,566,435
========== ========== ========== ========== ==========
INCOME BEFORE INT, DEPR/TAX (MOR-1) (481,677) (122,537) (822,887) 181,970 (3,206,388)
========== ========== ========== ========== ==========
INTEREST EXPENSE 273,977 (250,926) -- 29,905 41,363
DEPRECIATION 224,973 605,041 221,949 144,071 143,410
OTHER (INCOME) EXPENSE* -- (114) (6,385) 15,443
OTHER ITEMS** 153,381 -- -- -- --
---------- ---------- ---------- ---------- ----------
TOTAL INT, DEPR & OTHER ITEMS 652,331 354,115 221,835 167,591 200,216
---------- ---------- ---------- ---------- ----------
NET INCOME BEFORE TAXES (1,134,008) (476,652) (1,044,722) 14,379 (3,406,604)
========== ========== ========== ========== ==========
FEDERAL INCOME TAXES -- -- -- -- --
---------- ---------- ---------- ---------- ----------
NET INCOME (LOSS) (MOR-1) (1,134,008) (476,652) (1,044,722) 14,379 (3,406,604)
========== ========== ========== ========== ==========
MONTH JUNE JULY AUGUST SEPTEMBER FILING TO DATE
----- ---------- ---------- ---------- ---------- --------------
REVENUES (MOR-1) 8,903,440 6,576,809 5,937,602 6,891,386 56,417,156
TOTAL COST OF REVENUES 7,436,196 5,929,317 4,642,899 4,732,440 46,298,801
GROSS PROFIT 1,467,244 647,492 1,294,703 2,158,946 10,118,355
OPERATING EXPENSES:
Selling & Marketing 589,133 968,129 1,013,280 1,514,244 6,645,754
General & Administrative 412,675 359,332 357,475 385,744 4,063,641
Insiders Compensation 20,192 18,462 27,692 18,462 187,220
Professional Fees 27,824 11,955 19,902 -- 183,702
Correction of Liabilities (350,999) 2,832,997
Other (attach list) -- -- -- -- --
---------- ---------- ---------- ---------- -----------
TOTAL OPERATING EXPENSES 698,825 1,357,878 1,418,349 1,918,450 13,913,314
========== ========== ========== ========== ===========
INCOME BEFORE INT, DEPR/TAX (MOR-1) 768,419 (710,386) (123,646) 240,496 (3,794,959)
========== ========== ========== ========== ===========
INTEREST EXPENSE 47,801 63,564 84,367 74,809 90,883
DEPRECIATION 142,120 141,831 139,835 136,032 1,674,289
OTHER (INCOME) EXPENSE* (3,671) (4,553) (4,117) 650 (2,747)
OTHER ITEMS** -- -- -- --
---------- ---------- ---------- ---------- -----------
TOTAL INT, DEPR & OTHER ITEMS 186,250 200,842 220,085 211,491 1,762,425
---------- ---------- ---------- ---------- -----------
NET INCOME BEFORE TAXES 582,169 (911,228) (343,731) 29,005 (5,557,384)
========== ========== ========== ========== ===========
FEDERAL INCOME TAXES -- -- -- -- --
---------- ---------- ---------- ---------- -----------
NET INCOME (LOSS) (MOR-1) 582,169 (911,228) (343,731) 29,005 (5,557,384)
========== ========== ========== ========== ===========
Accrual Accounting Required, Otherwise Footnote With Explanation
* Footnote Mandatory
** Unusual and/or infrequent item(s) outside the ordinary course of business;
requires footnote
MOR-6
CASE NAME: NATIONWIDE HOUSING SYSTEMS, L.P. CASE NUMBER: 01-80030-G3-11
<Table>
<Caption>
MONTH MONTH MONTH MONTH MONTH
CASH RECEIPTS AND DISBURSEMENTS JANUARY FEBRUARY MARCH APRIL MAY
- ------------------------------- --------- --------- --------- --------- ---------
1. CASH - BEGINNING OF MONTH 528,790 1,294,818 421,289 1,068,687 1,842,942
RECEIPTS:
2. CASH SALES 46,445 1,052,504 3,631,853 4,128,935 3,002,822
3. COLLECTION OF ACCOUNTS RECEIVABLE 1,948,011 1,938,198 963,588 443,986 750,706
4. LOANS & ADVANCES (ATTACH LIST) -- -- --
5. INTERCOMPANY -- -- 841,144
6. OTHER (ATTACH LIST) -- 31,014 -- --
--------- --------- --------- --------- ---------
TOTAL RECEIPTS 1,994,456 3,021,716 4,595,441 4,572,921 4,594,672
========= ========= ========= ========= =========
(Withdrawal) Contribution by Individual Debtor MFR-2*
DISBURSEMENTS:
7. NET PAYROLL -- 1,658
8. PAYROLL TAXES PAID 147,652 -- 46,933 2,121
9. SALES, USE & OTHER TAXES PAID -- 21,419 26,816 38,888 37,464
10. SECURED / RENTAL / LEASES 506,704 1,032,362 1,990,495 1,333,670 1,743,523
11. UTILITIES -- 43,725 121,018 116,414 115,730
12. INSURANCE 106,736 118,270 157,853 86,760 130,749
13. INVENTORY PURCHASES 84,723 1,086,334 469,394 764,311 935,955
14. VEHICLE EXPENSES 13,492 14,572 16,140 15,717 16,633
15. TRAVEL ENTERTAINMENT 4,801 7,752 14,372 5,188 11,652
16. REPAIRS, MAINTENANCE & SUPPLIES 7,296 59,938 220,440 148,670 280,729
17. ADMINISTRATIVE & SELLING 61,458 57,079 138,425 152,345 179,719
18. INTERCOMPANY 295,565 1,236,463 301,743 524,130 469,845
19. CUSTOMER DEPOSITS 210,569
20. DELIVERY 5,103 488,409 547,261 654,126
21. OTHER (ATTACH LIST) --
--------- --------- --------- --------- ---------
TOTAL DISBURSEMENTS FROM OPERATIONS 1,228,429 3,895,245 3,945,106 3,780,287 4,578,246
========= ========= ========= ========= =========
20. PROFESSIONAL FEES -- 1,088 8,380 9,136
21. U.S. TRUSTEE FEES -- -- 10,000 250
22. OTHER REORGANIZATION EXPENSES (ATTACH LIST) -- 1,850 -- 2,500
--------- --------- --------- --------- ---------
TOTAL DISBURSEMENTS 1,228,429 3,895,245 3,948,043 3,798,667 4,590,132
========= ========= ========= ========= =========
23. NET CASH FLOW 766,027 (873,528) 647,398 774,254 4,540
--------- --------- --------- --------- ---------
24. CASH - END OF MONTH (MOR-2) 1,294,818 421,289 1,068,687 1,842,942 1,847,481
========= ========= ========= ========= =========
MONTH MONTH MONTH MONTH FILING TO
CASH RECEIPTS AND DISBURSEMENTS JUNE JULY AUGUST SEPTEMBER DATE
- ------------------------------- --------- --------- --------- ---------- -----------
1. CASH - BEGINNING OF MONTH 1,847,481 2,452,190 1,916,279 1,508,830 1,294,818
RECEIPTS:
2. CASH SALES 4,410,447 4,495,795 4,613,009 3,408,614 28,743,981
3. COLLECTION OF ACCOUNTS RECEIVABLE -- -- -- 337,425 4,433,903
4. LOANS & ADVANCES (ATTACH LIST) -- -- -- -- --
5. INTERCOMPANY 517,630 -- 1,358,774
6. OTHER (ATTACH LIST) -- -- -- -- 31,014
--------- --------- --------- ---------- -----------
TOTAL RECEIPTS 4,928,077 4,495,795 4,613,009 3,746,039 34,567,671
========= ========= ========= ========== ===========
(Withdrawal) Contribution by Individual Debtor MFR-2*
DISBURSEMENTS:
7. NET PAYROLL -- 562,669 564,328
8. PAYROLL TAXES PAID -- 109,095 158,148
9. SALES, USE & OTHER TAXES PAID 12,544 51,550 12,870 96,852 298,403
10. SECURED / RENTAL / LEASES 1,623,920 1,564,332 156,889 158,299 9,603,489
11. UTILITIES 107,917 113,012 111,168 91,608 820,593
12. INSURANCE 118,057 103,163 433,569 150,296 1,298,717
13. INVENTORY PURCHASES 1,531,322 1,753,066 2,990,179 2,358,174 11,888,734
14. VEHICLE EXPENSES 15,674 14,009 15,722 15,102 123,569
15. TRAVEL ENTERTAINMENT 8,369 8,614 11,244 5,219 72,410
16. REPAIRS, MAINTENANCE & SUPPLIES 253,695 151,714 177,765 140,012 1,432,965
17. ADMINISTRATIVE & SELLING 195,489 170,600 127,449 87,691 1,108,797
18. INTERCOMPANY 8,488 901,303 969,718 221,934 4,633,625
19. CUSTOMER DEPOSITS -- 176,056 -- -- 386,625
20. DELIVERY 443,235 10,172 -- -- 2,148,305
21. OTHER (ATTACH LIST) -- -- --
--------- --------- --------- ---------- -----------
TOTAL DISBURSEMENTS FROM OPERATIONS 4,318,710 5,017,591 5,006,573 3,996,950 34,538,707
========= ========= ========= ========== ===========
20. PROFESSIONAL FEES 4,660 14,116 13,884 -- 51,264
21. U.S. TRUSTEE FEES -- -- -- -- 10,250
22. OTHER REORGANIZATION EXPENSES (ATTACH LIST) -- -- -- 26,712 31,062
--------- --------- --------- ---------- -----------
TOTAL DISBURSEMENTS 4,323,369 5,031,707 5,020,458 4,023,662 92,576
========= ========= ========= ========== ===========
23. NET CASH FLOW 604,708 (535,912) (407,448) (277,624) (63,612)
--------- --------- --------- ---------- -----------
24. CASH - END OF MONTH (MOR-2) 2,452,190 1,916,279 1,508,830 1,231,207 1,231,207
========= ========= ========= ========== ===========
* applies to Individual debtor's only.
MOR-7
CASE NAME: NATIONWIDE HOUSING SYSTEMS, L.P. CASE NUMBER: 01-80030-G3-11
CASH ACCOUNT RECONCILIATION
MONTH OF SEPTEMBER 2001
BANK NAME Bank of America Investment Acct Amsouth Bank Bank of America
- --------- --------------- --------------- --------------- ---------------
ACCOUNT NUMBER # 3755500179 # 5000119268
ACCOUNT TYPE OPERATING OPERATING DEPOSITORY PAYROLL
--------------- --------------- --------------- ---------------
BANK BALANCE 953,337 -- -- 244,792
DEPOSIT IN TRANSIT -- -- -- --
OUTSTANDING CHECKS -- -- -- --
--------------- --------------- --------------- ---------------
ADJUSTED BANK BALANCE 953,337 -- -- 244,792
=============== =============== =============== ===============
BEGINNING CASH - PER BOOKS 821,540 496,802 73,494 86,588
RECEIPTS 3,746,039 -- -- --
TRANSFERS BETWEEN ACCOUNTS 634,026 (496,802) (73,494) 158,204
(WITHDRAWAL) CONTRIBUTION - BY INDIVIDUAL DEBTOR MFR-2 -- -- -- --
CHECKS / OTHER DISBURSEMENTS (4,245,268) -- -- --
--------------- --------------- --------------- ---------------
ENDING CASH - PER BOOKS 956,337 0 (0) 244,792
=============== =============== =============== ===============
BANK NAME 1st National Bryan Petty Cash
- --------- ------------------ ---------------
ACCOUNT NUMBER # 30889301
ACCOUNT TYPE DEPOSITORY OTHER FUNDS GRAND TOTAL
--------------- --------------- ---------------
BANK BALANCE -- 30,078 1,228,207
DEPOSIT IN TRANSIT -- -- --
OUTSTANDING CHECKS -- -- --
--------------- --------------- ---------------
ADJUSTED BANK BALANCE -- 30,078 1,228,207
=============== =============== ===============
BEGINNING CASH - PER BOOKS -- 30,406 1,508,830
RECEIPTS -- -- 3,746,039
TRANSFERS BETWEEN ACCOUNTS -- -- 221,934
(WITHDRAWAL) CONTRIBUTION - BY INDIVIDUAL DEBTOR MFR-2 -- -- --
CHECKS / OTHER DISBURSEMENTS -- (328) (4,245,596)
--------------- --------------- ---------------
ENDING CASH - PER BOOKS -- 30,078 1,231,207
=============== =============== ===============
MOR-8
CASE NAME: NATIONWIDE HOUSING SYSTEMS, L.P. CASE NUMBER: 01-80030-G3-11
PAYMENTS TO INSIDERS AND PROFESSIONALS
OF THE TOTAL DISBURSEMENTS SHOWN FOR THE MONTH, LIST THE AMOUNT PAID TO INSIDERS
(AS DEFINED IN SECTION 101(30)(A)-(F) OF THE U. S. BANKRUPTCY CODE) AND THE
PROFESSIONALS. ALSO, FOR INSIDERS IDENTIFY THE TYPE OF COMPENSATION PAID (e.g.,
SALARY, COMMISSION, BONUS, ETC.) (ATTACH ADDITIONAL PAGES AS NECESSARY).
MONTH MONTH MONTH MONTH MONTH
INSIDERS: NAME/POSITION/COMP TYPE JANUARY FEBRUARY MARCH APRIL MAY
- --------------------------------- -------- -------- ------ ------ ------
1. Finis F. Teeter/President HSTR General Holdings -- -- -- -- --
2. Ronald McCaslin/VP, Director HSTR General Holdings -- -- -- -- --
3. Charles N. Carney, Jr./VP, Director HSTR Gen Hold/Salary, Expense 9,231 19,274 29,527 16,460 15,383
4. Richard A. Carver/VP HSTR General Holdings -- -- -- -- --
5. Jackie Holland/VP HSTR General Holdings -- -- -- -- --
6. Craig A. Reynolds/VP, Secretary HSTR General Holdings -- -- -- -- --
7. Kristi E. Gross/Asst Secretary HSTR General Holdings -- -- -- -- --
8. Mary Morton/Asst Secretary HSTR General Holdings 2,308 4,615 6,923 4,615 4,615
9. Dennis L. Jones/President, Director HSTR Retail Holdings -- -- -- -- --
10. Ronald Krueger/VP, Treasurer, Director HSTR Retail Hold -- -- -- -- --
11. Robert Grier/Secretary, Director HSTR Retail Hold -- -- -- -- --
12. Beth L. Peoples/Asst Secretary, Asst Treasurer HSTR Ret Hold -- -- -- -- --
-------- -------- ------ ------ ------
TOTAL INSIDERS (MOR-1) 11,538 23,889 36,450 21,075 19,998
======== ======== ====== ====== ======
MONTH MONTH MONTH MONTH
INSIDERS: NAME/POSITION/COMP TYPE JUNE JULY AUGUST SEPTEMBER
- --------------------------------- ------ ------ -------- ---------
1. Finis F. Teeter/President HSTR General Holdings -- -- -- --
2. Ronald McCaslin/VP, Director HSTR General Holdings -- -- -- --
3. Charles N. Carney, Jr./VP, Director HSTR Gen Hold/Salary, Expense 15,577 13,846 20,769 13,846
4. Richard A. Carver/VP HSTR General Holdings -- -- -- --
5. Jackie Holland/VP HSTR General Holdings -- -- -- --
6. Craig A. Reynolds/VP, Secretary HSTR General Holdings -- -- -- --
7. Kristi E. Gross/Asst Secretary HSTR General Holdings -- -- -- --
8. Mary Morton/Asst Secretary HSTR General Holdings 4,615 4,615 6,923 4,615
9. Dennis L. Jones/President, Director HSTR Retail Holdings -- -- -- --
10. Ronald Krueger/VP, Treasurer, Director HSTR Retail Hold -- -- -- --
11. Robert Grier/Secretary, Director HSTR Retail Hold -- -- -- --
12. Beth L. Peoples/Asst Secretary, Asst Treasurer HSTR Ret Hold -- -- -- --
------ ------ -------- --------
TOTAL INSIDERS (MOR-1) 20,192 18,462 27,692 18,462
====== ====== ======== ========
MONTH MONTH MONTH MONTH MONTH
PROFESSIONALS/NAME/ORDER DATE JANUARY FEBRUARY MARCH APRIL MAY
- ----------------------------- -------- -------- -------- -------- --------
1. Floyd, Isgur, Rios & Warlich -- -- 1,088 2,430 4,702
2. Strategic Capital Corporation -- -- -- 5,950 4,434
3 -- -- -- -- --
4. -- -- -- -- --
5. -- -- -- -- --
6. -- -- -- -- --
-------- -------- -------- -------- --------
TOTAL PROFESSIONALS (MOR-1) -- -- 1,088 8,380 9,136
======== ======== ======== ======== ========
MONTH MONTH MONTH MONTH
PROFESSIONALS/NAME/ORDER DATE JUNE JULY AUGUST SEPTEMBER
- ----------------------------- -------- -------- -------- ---------
1. Floyd, Isgur, Rios & Warlich 2,802 -- -- 457
2. Strategic Capital Corporation 1,858 5,475 1,764 2,436
3. -- -- -- --
4. -- -- -- --
5. -- -- -- --
6. -- -- -- --
-------- -------- -------- --------
TOTAL PROFESSIONALS (MOR-1) 4,660 5,475 1,764 2,893
======== ======== ======== ========
MOR-9
UNITED STATES BANKRUPTCY COURT
SOUTHERN DISTRICT OF TEXAS
HOUSTON DIVISION
<Table>
<Caption>
CASE NAME: NATIONWIDE NC HOMES, INC. PETITION DATE: JANUARY 11, 2001
CASE NUMBER: 01-80031-G3-11
MONTHLY OPERATING REPORT SUMMARY FOR MONTH SEPTEMBER YEAR 2001
--------- ----
MONTH JANUARY FEBRUARY MARCH APRIL MAY
----- ---------- ---------- ---------- ---------- ----------
REVENUES (MOR-6) (259,689) 606,755 1,417,085 1,401,761 832,806
INCOME BEFORE INT, DEPREC./TAX (MOR-6) (270,827) (4,936,786) (1,163,245) (1,090,159) (2,522,459)
NET INCOME (LOSS) (MOR-6) (347,722) (5,017,156) (1,240,140) (1,089,774) (2,521,761)
PAYMENTS TO INSIDERS (MOR-9) -- -- -- -- --
PAYMENTS TO PROFESSIONALS (MOR-9) -- -- -- 644 4,484
TOTAL DISBURSEMENTS (MOR-8) 152,875 865,599 1,592,857 1,418,792 1,077,514
<Caption>
MONTH JUNE JULY AUGUST SEPTEMBER
----- ---------- ---------- ---------- ----------
REVENUES (MOR-6) 963,650 749,276 507,008 486,366
INCOME BEFORE INT, DEPREC./TAX (MOR-6) (815,547) (703,270) (548,994) (347,981)
NET INCOME (LOSS) (MOR-6) (814,314) (703,143) (548,994) (347,262)
PAYMENTS TO INSIDERS (MOR-9) -- -- -- --
PAYMENTS TO PROFESSIONALS (MOR-9) 1,656 2,132 840 812
TOTAL DISBURSEMENTS (MOR-8) 780,214 668,510 340,734 377,810
</Table>
*** The ORIGINAL of this document MUST BE FILED with the United States
Bankruptcy Court and a COPY MUST BE sent to the United States Trustee ***
- --------------------------------------------------------------------------------
REQUIRED INSURANCE MAINTAINED
AS OF SIGNATURE DATE
<Table>
<Caption>
EXP.
DATE
----
CASUALTY YES (X) NO ( ) 06/30/02
LIABILITY YES (X) NO ( ) 06/30/02
VEHICLE YES (X) NO ( ) 06/30/02
WORKER'S YES (X) NO ( ) 03/27/02
OTHER - DIRECTOR/OFFICER YES (X) NO ( ) 01/23/02
</Table>
- --------------------------------------------------------------------------------
ATTORNEY NAME:
FIRM: Floyd, Isgur, Rios & Warlich, P. C.
Address: 700 Louisiana, Suite 4600
Address:
City, State, ZIP: Houston, TX 77002-2732
Telephone: 713-222-1470
Fax: 713-222-1475
- --------------------------------------------------------------------------------
<Table>
<Caption>
CIRCLE ONE
Are all accounts receivable being collected within terms? YES NO
Are all posted-petition liabilities, including taxes, being paid within terms? YES NO
Have any pre-petition liabilities been paid? YES NO
If so, describe. PURSUANT TO COURT ORDER AUTHORIZING PAYMENTS OF PRE-PETITION
WAGES, SALARIES, COMMISSIONS AND COMPENSATION SIGNED JANUARY 11, 2001.
Are all funds received being deposited into DIP bank accounts? YES NO
Were any assets disposed of outside the normal course of business? YES NO
If so, describe. PROPERTY, PLANT & EQUIPMENT AND OTHER ASSET SALES MADE
PURSUANT TO VARIOUS COURT ORDERS AUTHORIZING SUCH ASSET SALES.
Are all U.S. Trustee Quarterly Fee Payments current? YES NO
What is the status of your Plan of Reorganization? PLAN OF
REORGANIZATION CONFIRMED BY COURT ON AUGUST 14, 2001. EFFECTIVE DATE
OF REORGANIZATION - OCTOBER 3, 2001.
</Table>
I certify under penalty of perjury that the
following complete Monthly Operating Report
(MOR), consisting of MOR-1 through MOR-9
plus attachments, is true and correct.
SIGNED /s/ CRAIG A. REYNOLDS
------------------------------------
TITLE Vice President of Finance
------------------------------------
MOR-1
CASE NAME: NATIONWIDE NC HOMES, INC. CASE NUMBER: 01-80031-G3-11
COMPARATIVE BALANCE SHEETS
<Table>
<Caption>
ASSETS MONTH MONTH MONTH MONTH MONTH
FILING DATE* JANUARY FEBRUARY MARCH APRIL MAY
----------- ----------- ----------- ----------- ----------- -----------
CURRENT ASSETS
Cash 161,100 492,593 392,147 872,088 805,576 432,907
Accounts Receivable, Net 6,232,287 4,913,054 3,691,493 2,566,744 1,998,419 44,990
Inventory: Lower of Cost or Market 12,358,890 12,429,169 10,324,611 8,294,869 6,356,429 --
Prepaid Expenses 71,082 61,154 42,604 55,582 37,724 --
Investments -- -- -- -- -- --
Other -- -- -- -- -- --
----------- ----------- ----------- ----------- ----------- -----------
TOTAL CURRENT ASSETS 18,823,359 17,895,970 14,450,855 11,789,283 9,198,148 477,897
=========== =========== =========== =========== =========== ===========
PROPERTY, PLANT&EQUIP, @ COST 5,116,397 5,048,396 5,048,396 5,048,396 4,785,982 4,370,032
Less Accumulated Depreciation 1,834,947 1,888,132 1,965,026 2,041,921 1,994,722 1,904,980
Less Impairment of Assets 2,678,207 2,678,207 2,386,097 2,465,052
----------- ----------- ----------- ----------- ----------- -----------
Net Book Value of PP & E 3,281,450 3,160,263 405,163 328,268 405,163 --
=========== =========== =========== =========== =========== ===========
OTHER ASSETS:
1. Tax Deposits -- -- -- -- -- --
2. Investments in Subs -- -- -- -- -- --
3. Deposits 720 720 720 720 720 720
4. Interests in Insurance Policies -- -- -- -- -- --
5. Note Receivable 17,950 16,900 -- 57,075 57,075 --
6. Deferred Tax Asset -- -- -- 110,611 110,611 --
7. Goodwill (929) -- -- -- -- --
8. Post Petition Intercompany 41,535
9. Other Assets 114,505 114,087 110,611 -- -- --
----------- ----------- ----------- ----------- ----------- -----------
TOTAL ASSETS 22,237,054 21,187,940 14,967,349 12,285,957 9,771,716 520,152
=========== =========== =========== =========== =========== ===========
<Caption>
ASSETS MONTH MONTH MONTH MONTH
JUNE JULY AUGUST SEPTEMBER
CURRENT ASSETS
Cash 455,014 455,699 432,663 346,447
Accounts Receivable, Net 44,655 85,459 (451,629) (539,104)
Inventory: Lower of Cost or Market -- (248,195) (1,020,766) (139,176)
Prepaid Expenses 7,774 23,188 14,923 39,350
Investments -- -- -- --
Other -- -- -- --
----------- ----------- ----------- -----------
TOTAL CURRENT ASSETS 507,443 316,152 (1,024,810) (292,482)
=========== =========== =========== ===========
PROPERTY, PLANT&EQUIP, @ COST 4,280,075 3,311,532 2,652,245 2,222,885
Less Accumulated Depreciation 1,925,128 1,519,436 1,251,289 1,075,182
Less Impairment of Assets 2,354,947 1,792,096 1,400,956 1,147,703
----------- ----------- ----------- -----------
Net Book Value of PP & E -- (0) (0) (0)
=========== =========== =========== ===========
OTHER ASSETS:
1. Tax Deposits -- -- -- --
2. Investments in Subs -- -- -- --
3. Deposits 720 (60) (60) (60)
4. Interests in Insurance Policies -- -- -- --
5. Note Receivable -- -- -- (200)
6. Deferred Tax Asset -- -- -- --
7. Goodwill -- -- -- --
8. Post Petition Intercompany 47,213 (15,723) 17,000 (31,224)
9. Other Assets -- -- -- --
----------- ----------- ----------- -----------
TOTAL ASSETS 555,375 300,369 (1,007,870) (323,966)
=========== =========== =========== ===========
</Table>
* Per Schedules and Statement of Affairs
MOR-2
CASE NAME: NATIONWIDE NC HOMES, INC. CASE NUMBER: 01-80031-G3-11
COMPARATIVE BALANCE SHEETS
<Table>
<Caption>
LIABILITIES & OWNER'S MONTH MONTH MONTH MONTH MONTH
EQUITY FILING DATE* JANUARY FEBRUARY MARCH APRIL MAY
- --------------------- ----------- ----------- ----------- ----------- ----------- -----------
LIABILITIES:
POST-PETITION LIABILITIES (MOR-4) 404,558 1,938,122 1,893,829 1,723,302 1,051,118
----------- ----------- ----------- ----------- -----------
PRE-PETITION LIABILITIES:
Notes Payable - Secured 13,293,465 12,810,736 11,287,943 9,809,242 6,857,899 --
Priority Debt 440,223 405,517 266,548 243,712 242,577 186,000
Federal Income Tax -- (228,170) (228,170) (228,170) (228,170) --
Fica/withholding -- -- -- -- -- --
Unsecured Debt 2,168,043 1,834,818 756,880 861,458 2,552,534 3,181,221
Intercompany Non-filing -- 3,211 -- -- -- --
Intercompany 19,648,866 19,618,537 19,624,446 19,624,446 19,631,909 19,631,909
Other -- -- -- -- -- --
----------- ----------- ----------- ----------- ----------- -----------
TOTAL PRE-PETITION LIABILITIES 35,550,597 34,444,647 31,707,647 30,310,688 29,056,748 22,999,129
----------- ----------- ----------- ----------- ----------- -----------
TOTAL LIABILITIES 35,550,597 34,849,205 33,645,769 32,204,517 30,780,051 24,050,248
=========== =========== =========== =========== =========== ===========
OWNER'S EQUITY (DEFICIT):
Preferred Stock -- --
Common Stock 10 10 10 10 10 10
ADDITIONAL PAID-IN CAPITAL 9,990 9,990 9,990 9,990 9,990 9,990
RETAINED EARNINGS: FILING DATE (13,323,543) (13,323,543) (13,323,543) (13,323,543) (13,323,543) (13,323,543)
RETAINED EARNINGS: POST FILING DATE -- (347,722) (5,364,878) (6,605,017) (7,694,791) (10,216,553)
----------- ----------- ----------- ----------- ----------- -----------
TOTAL OWNER'S EQUITY (NET WORTH) (13,313,543) (13,661,265) (18,678,420) (19,918,560) (21,008,334) (23,530,096)
----------- ----------- ----------- ----------- ----------- -----------
TOTAL LIABILITIES &
OWNER'S EQUITY (DEFICIT): 22,237,054 21,187,941 14,967,371 12,285,956 9,771,716 520,174
=========== =========== =========== =========== =========== ===========
<Caption>
LIABILITIES & OWNER'S MONTH MONTH MONTH MONTH
EQUITY JUNE JULY AUGUST SEPTEMBER
- --------------------- ----------- ----------- ----------- -----------
LIABILITIES:
POST-PETITION LIABILITIES (MOR-4) 1,587,078 1,823,254 1,860,311 1,888,051
----------- ----------- ----------- -----------
PRE-PETITION LIABILITIES:
Notes Payable - Secured -- (65,763) (820,047) 38,048
Priority Debt 201,163 201,163 248,140 197,358
Federal Income Tax --
Fica/withholding -- -- -- --
Unsecured Debt 3,479,636 3,757,359 3,789,506 4,020,867
Intercompany Non-filing -- -- -- --
Intercompany 19,631,909 19,631,909 19,631,909 19,631,909
Other -- -- --
----------- ----------- ----------- -----------
TOTAL PRE-PETITION LIABILITIES 23,312,707 23,524,668 22,849,508 23,888,183
----------- ----------- ----------- -----------
TOTAL LIABILITIES 24,899,785 25,347,922 24,709,819 25,776,234
=========== =========== =========== ===========
OWNER'S EQUITY (DEFICIT):
Preferred Stock
Common Stock 10 10 10 10
ADDITIONAL PAID-IN CAPITAL 9,990 9,990 9,990 9,990
RETAINED EARNINGS: FILING DATE (13,323,543) (13,323,543) (13,323,543) (13,323,543)
RETAINED EARNINGS: POST FILING DATE (11,030,867) (11,734,010) (11,734,010) (11,734,010)
----------- ----------- ----------- -----------
TOTAL OWNER'S EQUITY (NET WORTH) (24,344,410) (25,047,553) (25,717,734) (26,100,200)
----------- ----------- ----------- -----------
TOTAL LIABILITIES &
OWNER'S EQUITY (DEFICIT): 555,375 300,369 (1,007,892) (323,966)
=========== =========== =========== ===========
</Table>
MOR-3
CASE NAME: NATIONWIDE NC HOMES, INC. CASE NUMBER: 01-80031-G3-11
SCHEDULE OF POST-PETITION LIABILITIES
<Table>
<Caption>
MONTH MONTH MONTH MONTH MONTH
JANUARY FEBRUARY MARCH APRIL MAY
---------- ---------- ---------- ---------- ----------
TRADE ACCOUNTS PAYABLE 60,722 446,931 348,213 861,659 1,021,008
---------- ---------- ---------- ---------- ----------
TAX PAYABLE
Federal Payroll Taxes 25,000 44,964 45,482 56,387 20,486
State Payroll & SALES 37 16,406 25,201 13,751 10,474
Ad Valorem Taxes 3,450 3,450 10,350 13,800 13,800
Other Taxes -- -- -- -- --
---------- ---------- ---------- ---------- ----------
TOTAL TAXES PAYABLE 28,487 64,820 81,033 83,938 44,760
========== ========== ========== ========== ==========
SECURED DEBT POST-PETITION -- -- -- -- --
ACCRUED INTEREST PAYABLE -- -- -- -- --
* ACCRUED PROFESSIONAL FEES -- -- -- -- --
OTHER ACCRUED LIABILITIES:
1. Deposits (Moved to Trade May) 60,002 109,591 417,489 249,079 --
2. Salaries 5,656 232,474 229,790 93,826 (14,650)
3. Cost of Sales 776,909 513,574 417,507 --
4. Intercompany 249,691 307,398 303,730 17,293 --
---------- ---------- ---------- ---------- ----------
TOTAL POST-PETITION LIABILITIES (MOR-3) 404,558 1,938,122 1,893,828 1,723,302 1,051,118
========== ========== ========== ========== ==========
<Caption>
MONTH MONTH MONTH MONTH
JUNE JULY AUGUST SEPTEMBER
---------- ---------- ---------- ----------
TRADE ACCOUNTS PAYABLE 1,541,039 1,800,365 1,918,642 1,894,008
---------- ---------- ---------- ----------
TAX PAYABLE
Federal Payroll Taxes 18,620 12,707 24,673 28,540
State Payroll & SALES 16,979 11,536 12,166 9,140
Ad Valorem Taxes 13,800 13,800 13,800 13,800
Other Taxes -- -- -- --
---------- ---------- ---------- ----------
TOTAL TAXES PAYABLE 49,399 38,043 50,638 51,480
========== ========== ========== ==========
SECURED DEBT POST-PETITION -- -- (74,279) (38,048)
ACCRUED INTEREST PAYABLE -- -- -- --
* ACCRUED PROFESSIONAL FEES -- -- -- --
OTHER ACCRUED LIABILITIES:
1. Deposits (Moved to Trade May) -- -- -- --
2. Salaries (3,360) (15,154) (34,690) (19,389)
3. Cost of Sales -- -- -- --
4. Intercompany -- -- -- --
---------- ---------- ---------- ----------
TOTAL POST-PETITION LIABILITIES (MOR-3) 1,587,078 1,823,254 1,860,311 1,888,051
========== ========== ========== ==========
</Table>
* Payment Requires Court Approval
MOR-4
CASE NAME: NATIONWIDE NC HOMES, INC. CASE NUMBER: 01-80031-G3-11
AGING OF POST-PETITION LIABILITIES
MONTH OF SEPTEMBER 2001
<Table>
<Caption>
DAYS AD-VALOREM,
TOTAL TRADE ACCTS FED TAXES STATE TAXES OTHER TAXES OTHER
------------- ------------- ------------- ------------- ------------- -------------
0-30 1,888,051 1,894,008 28,540 9,140 13,800 (57,437)
31-60 --
61-90 --
91 + --
TOTAL 1,888,051 1,894,008 28,540 9,140 13,800 (57,437)
</Table>
AGING OF ACCOUNTS RECEIVABLE
<Table>
<Caption>
MONTH JANUARY FEBRUARY MARCH APRIL MAY
--------- --------- --------- --------- ---------
0-30 DAYS 229,299 348,213 -- -- --
31-60 DAYS 180,759 149,034 -- -- --
61-90 DAYS 561,115 84,434 44,710 -- --
91 + DAYS 3,941,881 3,458,025 2,522,034 1,998,419 44,990
TOTAL 4,913,054 4,039,706 2,566,744 1,998,419 44,990
<Caption>
MONTH JUNE JULY AUGUST SEPTEMBER
--------- --------- --------- ---------
0-30 DAYS -- -- (537,089) (624,564)
31-60 DAYS -- -- -- --
61-90 DAYS -- -- -- --
91 + DAYS 44,655 85,459 85,459 85,459
TOTAL 44,655 85,459 (451,629) (539,104)
</Table>
MOR-5
CASE NAME: NATIONWIDE NC HOMES, INC. CASE NUMBER: 01-80031-G3-11
01-80031-G3-11
01-80031-G3-11
01-80031-G3-11
STATEMENT OF INCOME (LOSS)
<Table>
<Caption>
MONTH JANUARY FEBRUARY MARCH APRIL MAY
----- ---------- ---------- ---------- ---------- ----------
REVENUES (MOR-1) (259,689) 606,755 1,417,085 1,401,761 832,806
TOTAL COST OF REVENUES (116,734) 1,299,867 2,168,923 2,196,205 1,015,132
GROSS PROFIT (142,955) (693,112) (751,838) (794,444) (182,326)
OPERATING EXPENSES:
Selling & Marketing 91,253 215,606 170,382 217,291 134,194
General & Administrative 36,619 157,819 190,343 140,911 141,943
Insiders Compensation -- -- -- --
Professional Fees -- 49,095 14,410 250
Impairment of Assets -- 3,870,249 1,587 (76,897) 2,063,746
Other (attach list) --
---------- ---------- ---------- ---------- ----------
TOTAL OPERATING EXPENSES 127,872 4,243,674 411,407 295,715 2,340,133
========== ========== ========== ========== ==========
INCOME BEFORE INT, DEPR/TAX (MOR-1) (270,827) (4,936,786) (1,163,245) (1,090,159) (2,522,459)
========== ========== ========== ========== ==========
INTEREST EXPENSE --
DEPRECIATION 76,895 80,370 76,895 -- --
OTHER (INCOME) EXPENSE * -- (385) (698)
OTHER ITEMS ** --
---------- ---------- ---------- ---------- ----------
TOTAL INT, DEPR & OTHER ITEMS 76,895 80,370 76,895 (385) (698)
---------- ---------- ---------- ---------- ----------
NET INCOME BEFORE TAXES (347,722) (5,017,156) (1,240,140) (1,089,774) (2,521,761)
========== ========== ========== ========== ==========
FEDERAL INCOME TAXES -- -- -- -- --
---------- ---------- ---------- ---------- ----------
NET INCOME (LOSS) (MOR-1) (347,722) (5,017,156) (1,240,140) (1,089,774) (2,521,761)
========== ========== ========== ========== ==========
<Caption>
MONTH JUNE JULY AUGUST SEPTEMBER FILING TO DATE
----- ---------- ---------- ---------- ---------- --------------
REVENUES (MOR-1) 953,650 749,276 507,008 486,366 6,347,952
TOTAL COST OF REVENUES 1,558,356 1,179,524 851,596 597,771 9,567,507
GROSS PROFIT (604,706) (430,248) (344,588) (111,405) (3,219,555)
OPERATING EXPENSES:
Selling & Marketing 439,181 124,660 103,421 122,352 1,311,481
General & Administrative (34,498) 140,562 100,985 112,709 792,955
Insiders Compensation -- -- -- -- --
Professional Fees 5,553 69,308
Impairment of Assets (199,395) 1,515 1,790,556
Other (attach list) 7,800 -- -- 7,800
---------- ---------- ---------- ---------- ----------
--
TOTAL OPERATING EXPENSES 210,841 273,022 204,406 236,576 3,972,101
========== ========== ========== ========== ==========
INCOME BEFORE INT, DEPR/TAX (MOR-1) (815,547) (703,270) (548,994) (347,981) (7,191,656)
========== ========== ========== ========== ==========
INTEREST EXPENSE (127) (127)
DEPRECIATION -- -- -- -- 76,895
OTHER (INCOME) EXPENSE * (1,233) (719) (3,035)
OTHER ITEMS ** -- --
---------- ---------- ---------- ---------- ----------
TOTAL INT, DEPR & OTHER ITEMS (1,233) (127) -- (719) 73,733
---------- ---------- ---------- ---------- ----------
NET INCOME BEFORE TAXES (814,314) (703,143) (548,994) (347,262) (7,265,389)
========== ========== ========== ========== ==========
FEDERAL INCOME TAXES -- -- -- -- --
---------- ---------- ---------- ---------- ----------
NET INCOME (LOSS) (MOR-1) (814,314) (703,143) (548,994) (347,262) (7,265,389)
========== ========== ========== ========== ==========
</Table>
Accrual Accounting Required, Otherwise Footnote With Explanation
* Footnote Mandatory
** Unusual and/or infrequent item(s) outside the ordinary course of business;
requires footnote
MOR-6
CASE NAME: NATIONWIDE NC HOMES, INC. CASE NUMBER: 01-80031-G3-11
<Table>
<Caption>
CASH RECEIPTS AND MONTH MONTH MONTH MONTH MONTH
DISBURSEMENTS JANUARY FEBRUARY MARCH APRIL MAY
---------- ---------- ---------- ---------- ----------
1. CASH - BEGINNING OF MONTH 161,100 492,593 392,147 872,087 805,574
RECEIPTS:
2. CASH SALES 293,967 932,858 948,534 643,975 824,768
3. COLLECTION OF ACCOUNTS RECEIVABLE 273,042 147,044 1,101,253 568,325 0
4. LOANS & ADVANCES (ATTACH LIST) -- 0 0
5. SALE OF ASSETS -- 0 0
6. CUSTOMER DEPOSITS 578 0 0
7. INTERCOMPANY -- 23,010 139,979 0
---------- ---------- ---------- ---------- ----------
TOTAL RECEIPTS 567,587 1,079,901 2,072,797 1,352,279 824,768
========== ========== ========== ========== ==========
(WITHDRAWAL) CONTRIBUTION BY INDIVIDUAL DEBTOR MFR-2*
DISBURSEMENTS:
8. NET PAYROLL --
9. PAYROLL TAXES PAID 3,437 21,371 45,118 --
10. SALES, USE & OTHER TAXES PAID -- 16,205 30,674
11. SECURED / RENTAL / LEASES 83,161 666,115 1,141,984 839,063 727,481
12. UTILITIES -- 11,907 32,882 21,886 26,608
13. INSURANCE 19,569 21,700 35,200 44,460 18,144
14. INVENTORY PURCHASES 25,410 94,018 97,505 184,829 90,762
15. VEHICLE EXPENSES 5,237 4,063 4,330 4,041 4,439
16. TRAVEL ENTERTAINMENT 2,151 204 4,300 5,729 4,099
17. REPAIRS, MAINTENANCE & SUPPLIES 8,381 17,291 172,698 170,179 129,689
18. ADMINISTRATIVE & SELLING 5,529 3,695 3,000 6,624 5,346
19. INTERCOMPANY 83,218 279,577 124,724
20. DELIVERY 0 65,574 79,496 88,220 30,735
21. OTHER (ATTACH LIST) -- --
---------- ---------- ---------- ---------- ----------
TOTAL DISBURSEMENTS FROM OPERATIONS 236,093 1,180,347 1,592,767 1,410,148 1,192,702
========== ========== ========== ========== ==========
21. PROFESSIONAL FEES -- 90 644 4,484
22. U.S. TRUSTEE FEES -- 8,000 250
23. OTHER REORGANIZATION EXPENSES (ATTACH LIST) -- 0
---------- ---------- ---------- ---------- ----------
TOTAL DISBURSEMENTS 236,093 1,180,347 1,592,857 1,418,792 1,197,436
========== ========== ========== ========== ==========
24. NET CASH FLOW 331,493 (100,446) 479,940 (66,512) (372,668)
---------- ---------- ---------- ---------- ----------
25. CASH - END OF MONTH (MOR-2) 492,593 392,147 872,087 805,574 432,906
========== ========== ========== ========== ==========
<Caption>
CASH RECEIPTS AND MONTH MONTH MONTH MONTH FILING TO
DISBURSEMENTS JUNE JULY AUGUST SEPTEMBER DATE
---------- ---------- ---------- ---------- ----------
1. CASH - BEGINNING OF MONTH 432,907 455,014 455,699 432,663 392,147
RECEIPTS:
2. CASH SALES 529,368 467,870 -- -- 3,414,515
3. COLLECTION OF ACCOUNTS RECEIVABLE -- -- 227,428 187,037 2,084,043
4. LOANS & ADVANCES (ATTACH LIST) -- -- -- -- --
5. SALE OF ASSETS -- -- -- -- --
6. CUSTOMER DEPOSITS -- -- -- -- --
7. INTERCOMPANY 272,953 202,096 90,270 104,557 832,864
---------- ---------- ---------- ---------- ----------
TOTAL RECEIPTS 802,320 669,966 317,698 291,594 6,331,423
========== ========== ========== ========== ==========
(WITHDRAWAL) CONTRIBUTION BY INDIVIDUAL DEBTOR MFR-2*
DISBURSEMENTS:
8. NET PAYROLL 78,357 78,357
9. PAYROLL TAXES PAID 7,717 3,851 23,314 101,372
10. SALES, USE & OTHER TAXES PAID 16,372 11,713 6,988 18,301 84,047
11. SECURED / RENTAL / LEASES 502,773 29,850 31,835 14,400 3,287,386
12. UTILITIES 23,833 22,878 17,980 10,511 156,578
13. INSURANCE 20,893 11,139 5,470 39,979 175,285
14. INVENTORY PURCHASES 65,073 554,657 238,684 166,749 1,398,258
15. VEHICLE EXPENSES 2,336 1,925 2,894 1,865 21,830
16. TRAVEL ENTERTAINMENT 8,991 2,238 15,612 8,180 49,148
17. REPAIRS, MAINTENANCE & SUPPLIES 108,689 14,700 15,540 13,113 624,607
18. ADMINISTRATIVE & SELLING 7,122 1,518 1,041 762 25,413
19. INTERCOMPANY 124,724
20. DELIVERY 22,478 -- -- -- 220,929
21. OTHER (ATTACH LIST) --
---------- ---------- ---------- ---------- ----------
TOTAL DISBURSEMENTS FROM OPERATIONS 778,558 658,334 339,894 375,531 6,347,934
========== ========== ========== ========== ==========
21. PROFESSIONAL FEES 1,656 2,064 840 968 10,745
22. U.S. TRUSTEE FEES -- -- 8,250
23. OTHER REORGANIZATION EXPENSES (ATTACH LIST) 8,882 -- 1,312 10,194
---------- ---------- ---------- ---------- ----------
TOTAL DISBURSEMENTS 780,214 669,281 340,734 377,810 6,377,124
========== ========== ========== ========== ==========
24. NET CASH FLOW 22,107 685 (23,036) (86,217) (45,701)
---------- ---------- ---------- ---------- ----------
25. CASH - END OF MONTH (MOR-2) 455,014 455,699 432,663 346,447 346,447
========== ========== ========== ========== ==========
</Table>
* applies to Individual debtor's only.
MOR-7
CASE NAME: NATIONWIDE NC HOMES, INC. CASE NUMBER: 01-80031-G3-11
CASH ACCOUNT RECONCILIATION
MONTH OF SEPTEMBER 2001
<Table>
<Caption>
BANK NAME Bank of America BB&T Bank of America Bank of America
- --------- --------------- --------------- --------------- ---------------
ACCOUNT NUMBER # 3755500234 # 5210952421
ACCOUNT TYPE OPERATING EXPENSE INVESTMENT PAYROLL
--------------- --------------- --------------- ---------------
BANK BALANCE 308,528 -- -- 35,919
DEPOSIT IN TRANSIT --
OUTSTANDING CHECKS -- -- --
--------------- --------------- --------------- ---------------
ADJUSTED BANK BALANCE 308,528 -- -- 35,919
=============== =============== =============== ===============
BEGINNING CASH - PER BOOKS 291,939 5,172 124,034 6,518
RECEIPTS 187,037 -- -- --
TRANSFERS BETWEEN ACCOUNTS 207,362 (5,172) (124,034) 29,401
(WITHDRAWAL) CONTRIBUTION - BY INDIVIDUAL DEBTOR MFR-2 -- -- -- --
CHECKS / OTHER DISBURSEMENTS (377,810) -- -- --
--------------- --------------- --------------- ---------------
ENDING CASH - PER BOOKS 308,528 (0) 0 35,919
=============== =============== =============== ===============
<Caption>
BANK NAME Petty Cash
- --------- ---------------
ACCOUNT NUMBER
ACCOUNT TYPE OTHER FUNDS TOTAL
--------------- ---------------
BANK BALANCE 2,000 346,447
DEPOSIT IN TRANSIT -- --
OUTSTANDING CHECKS -- --
--------------- ---------------
ADJUSTED BANK BALANCE 2,000 346,447
=============== ===============
BEGINNING CASH - PER BOOKS 5,000 432,663
RECEIPTS -- 187,037
TRANSFERS BETWEEN ACCOUNTS (3,000) 104,557
(WITHDRAWAL) CONTRIBUTION - BY INDIVIDUAL DEBTOR MFR-2 -- --
CHECKS / OTHER DISBURSEMENTS (377,810)
--------------- ---------------
ENDING CASH - PER BOOKS 2,000 346,447
=============== ===============
</Table>
MOR-8
CASE NAME: NATIONWIDE NC HOMES, INC. CASE NUMBER: 01-80031-G3-11
PAYMENTS TO INSIDERS AND PROFESSIONALS
OF THE TOTAL DISBURSEMENTS SHOWN FOR THE MONTH, LIST THE AMOUNT PAID TO INSIDERS
(AS DEFINED IN SECTION 101(30)(A)-(F) OF THE U. S. BANKRUPTCY CODE) AND THE
PROFESSIONALS. ALSO, FOR INSIDERS IDENTIFY THE TYPE OF COMPENSATION PAID (E.G.,
SALARY, COMMISSION, BONUS, ETC.) (ATTACH ADDITIONAL PAGES AS NECESSARY).
<Table>
<Caption>
MONTH MONTH MONTH MONTH MONTH
INSIDERS: NAME/POSITION/COMP TYPE JANUARY FEBRUARY MARCH APRIL MAY
- --------------------------------- --------- --------- --------- --------- ---------
1. Charles N. Carney, Jr./President, Director -- -- -- -- --
2. Craig A. Reynolds/VP, Secretary, Treasurer, Director -- -- -- -- --
3. Mary Morton/Assistant Secretary -- -- -- -- --
4. Kristi E. Gross/Assistant Secretary -- -- -- -- --
5 -- -- -- -- --
6 -- -- -- -- --
--------- --------- --------- --------- ---------
TOTAL INSIDERS (MOR-1) -- -- -- -- --
========= ========= ========= ========= =========
<Caption>
MONTH MONTH MONTH MONTH
INSIDERS: NAME/POSITION/COMP TYPE JUNE JULY AUGUST SEPTEMBER
- --------------------------------- --------- --------- --------- ---------
1. Charles N. Carney, Jr./President, Director -- -- -- --
2. Craig A. Reynolds/VP, Secretary, Treasurer, Director -- -- -- --
3. Mary Morton/Assistant Secretary -- -- -- --
4. Kristi E. Gross/Assistant Secretary -- -- -- --
5 -- -- -- --
6 -- -- -- --
--------- --------- --------- ---------
TOTAL INSIDERS (MOR-1) -- -- -- --
========= ========= ========= =========
</Table>
<Table>
<Caption>
MONTH MONTH MONTH MONTH MONTH
PROFESSIONALS/NAME/ORDER DATE JANUARY FEBRUARY MARCH APRIL MAY
- ----------------------------- --------- --------- --------- --------- ---------
Floyd, Isgur, Rios & Warlich -- -- 90 644 1,764
2. Strategic Capital Corporation -- -- -- -- 2,720
3. -- -- -- -- --
4. -- -- -- -- --
5. -- -- -- -- --
6. -- -- -- -- --
--------- --------- --------- --------- ---------
TOTAL PROFESSIONALS (MOR-1) -- -- 90 644 4,484
========= ========= ========= ========= =========
<Caption>
MONTH MONTH MONTH MONTH
PROFESSIONALS/NAME/ORDER DATE JUNE JULY AUGUST SEPTEMBER
- ----------------------------- --------- --------- --------- ---------
Floyd, Isgur, Rios & Warlich 608 -- --
2. Strategic Capital Corporation 1,048 2,132 840 812
3. -- -- -- --
4. -- -- -- --
5. -- -- -- --
6. -- -- -- --
--------- --------- --------- ---------
TOTAL PROFESSIONALS (MOR-1) 1,656 2,132 840 812
========= ========= ========= =========
</Table>
MOR-9
UNITED STATES BANKRUPTCY COURT
SOUTHERN DISTRICT OF TEXAS
HOUSTON DIVISION
<Table>
<Caption>
CASE NAME: NATIONWIDE WEST, L. P. PETITION DATE: JANUARY 11, 2001
CASE NUMBER: 01-80033-G3-12
MONTHLY OPERATING REPORT SUMMARY FOR MONTH SEPTEMBER YEAR 2001
--------- ----
MONTH JANUARY FEBRUARY MARCH APRIL MAY
----- ---------- ---------- ---------- ---------- ----------
REVENUES (MOR-6) (191,863) 151,035 1,316,048 1,194,694 1,188,756
INCOME BEFORE INT, DEPREC./TAX (MOR-6) (139,434) (1,940,228) (147,828) (108,431) (1,489,473)
NET INCOME (LOSS) (MOR-6) (237,837) (2,018,854) (139,730) (116,980) (1,496,304)
PAYMENTS TO INSIDERS (MOR-9) 6,923 15,347 20,769 11,818 11,429
PAYMENTS TO PROFESSIONALS (MOR-9) -- -- 252 410 3,767
TOTAL DISBURSEMENTS (MOR-8) 216,749 980,355 497,647 783,388 986,758
<Caption>
MONTH JUNE JULY AUGUST SEPTEMBER
----- ---------- ---------- ---------- ----------
REVENUES (MOR-6) 1,449,252 1,159,354 1,185,691 519,852
INCOME BEFORE INT, DEPREC./TAX (MOR-6) 58,439 (447,721) (72,158) (346,171)
NET INCOME (LOSS) (MOR-6) 47,864 (461,801) (83,258) (360,115)
PAYMENTS TO INSIDERS (MOR-9) 9,231 9,231 13,846 9,231
PAYMENTS TO PROFESSIONALS (MOR-9) 2,120 2,836 1,176 1,288
TOTAL DISBURSEMENTS (MOR-8) 673,545 470,736 560,980 588,382
</Table>
*** The ORIGINAL of this document MUST BE FILED with the United States
Bankruptcy Court and a COPY MUST BE SENT to the United States Trustee ***
- --------------------------------------------------------------------------------
REQUIRED INSURANCE MAINTAINED
AS OF SIGNATURE DATE
<Table>
<Caption>
EXP.
DATE
----
CASUALTY YES (X) NO ( ) 06/30/02
LIABILITY YES (X) NO ( ) 06/30/02
VEHICLE YES (X) NO ( ) 06/30/02
WORKER'S YES (X) NO ( ) 04/01/02
OTHER - DIRECTOR/OFFICER YES (X) NO ( ) 01/23/02
</Table>
- --------------------------------------------------------------------------------
ATTORNEY NAME:
FIRM: Floyd, Isgur, Rios & Warlich, P. C.
Address: 700 Louisiana, Suite 4600
Address:
City, State, ZIP: Houston, TX 77002-2732
Telephone: 713-222-1470
Fax: 713-222-1475
- --------------------------------------------------------------------------------
<Table>
<Caption>
CIRCLE ONE
Are all accounts receivable being collected within terms? YES NO
Are all posted-petition liabilities, including taxes, being paid within terms? YES NO
Have any pre-petition liabilities been paid? YES NO
If so, describe. PURSUANT TO COURT ORDER AUTHORIZING PAYMENTS OF PRE-PETITION
WAGES, SALARIES, COMMISSIONS AND COMPENSATION SIGNED JANUARY 11, 2001.
Are all funds received being deposited into DIP bank accounts? YES NO
Were any assets disposed of outside the normal course of business? YES NO
If so, describe.
-----------------------------------------------------------
- ----------------------------------------------------------------------------.
Are all U.S. Trustee Quarterly Fee Payments current? YES NO
What is the status of your Plan of Reorganization? PLAN OF REORGANIZATION
CONFIRMED BY COURT ON AUGUST 14, 2001. EFFECTIVE DATE OF REORGANIZATION -
OCTOBER 3, 2001.
</Table>
I certify under penalty of perjury that the following
complete Monthly Operating Report (MOR), consisting of
MOR-1 through MOR-9 plus attachments, is true and
correct.
SIGNED /s/ CRAIG A. REYNOLDS
-------------------------------------------
TITLE Vice President of Finance
-------------------------------------------
MOR-1
CASE NAME: NATIONWIDE WEST, L.P. CASE NUMBER: 01-80033-G3-11
COMPARATIVE BALANCE SHEETS
<Table>
<Caption>
MONTH MONTH MONTH MONTH MONTH
ASSETS FILING DATE* JANUARY FEBRUARY MARCH APRIL MAY
------ ---------- ---------- ---------- ---------- ---------- ---------
CURRENT ASSETS
Cash 265,800 632,185 278,194 506,032 292,862 169,766
Accounts Receivable, Net 2,897,936 2,021,238 1,000,500 752,438 765,497 469,504
Inventory: Lower of Cost or Market 10,525,500 10,901,964 10,444,133 9,309,148 8,702,889 2,414,537
Prepaid Expenses 133,011 120,336 104,941 123,155 89,745 27,792
Investments -- -- -- -- -- --
Other -- -- -- -- -- --
---------- ---------- ---------- ---------- ---------- ---------
TOTAL CURRENT ASSETS 13,822,248 13,675,723 11,827,767 10,690,772 9,850,992 3,081,600
========== ========== ========== ========== ========== =========
PROPERTY, PLANT&EQUIP, @ COST 3,393,093 3,393,093 3,282,710 3,282,710 3,228,604 2,671,747
Less Accumulated Depreciation 2,045,581 2,087,921 2,081,140 2,115,151 2,112,597 1,762,881
Less Reserve for Impairment -- -- 632,316 632,316 527,866 589,300
---------- ---------- ---------- ---------- ---------- ---------
Net Book Value of PP & E 1,347,512 1,305,172 569,254 535,243 588,141 319,565
========== ========== ========== ========== ========== =========
OTHER ASSETS:
1. Tax Deposits -- -- -- -- --
2. Investments in Subs -- -- -- -- --
3. Deposits 22,311 22,311 22,311 22,311 22,311 21,860
4. Interests in Insurance Policies -- -- -- -- -- --
5. Note Receivable 54,769 41,689 8,570 41,279 31,802 (151)
6. Deferred Tax Asset -- -- -- -- -- --
7. Goodwill 145,850 145,850 -- -- -- --
8. Other Assets 479,648 477,565 477,565 477,564 477,564 --
9. Intercompany Non Filing Company 10,000 10,000 10,000 --
---------- ---------- ---------- ---------- ---------- ---------
TOTAL ASSETS 15,872,338 15,668,310 12,915,468 11,777,169 10,980,809 3,422,874
========== ========== ========== ========== ========== =========
<Caption>
MONTH MONTH MONTH MONTH
ASSETS JUNE JULY AUGUST SEPTEMBER
------ ----------- ------------ ------------ -----------
CURRENT ASSETS
Cash 235,920 99,852 181,530 123,355
Accounts Receivable, Net 258,014 483,435 240,226 (65,621)
Inventory: Lower of Cost or Market 2,208,519 1,723,694 1,562,131 (62,891)
Prepaid Expenses 27,155 (27,767) (38,591) (45,304)
Investments -- -- -- --
Other -- -- -- --
----------- ------------ ------------ -----------
TOTAL CURRENT ASSETS 2,729,608 2,279,215 1,945,295 (50,461)
=========== ============ ============ ===========
PROPERTY, PLANT&EQUIP, @ COST 2,381,869 2,378,308 2,359,643 1,172,392
Less Accumulated Depreciation 1,632,694 1,651,353 1,658,860 849,405
Less Reserve for Impairment 436,439 416,355 396,898 332,388
----------- ------------ ------------ -----------
Net Book Value of PP & E 312,735 310,600 303,884 (9,400)
=========== ============ ============ ===========
OTHER ASSETS: -- --
1. Tax Deposits -- --
2. Investments in Subs -- --
3. Deposits 21,860 14,890 14,890 6,830
4. Interests in Insurance Policies -- -- --
5. Note Receivable (561) (971) (971) 9,116
6. Deferred Tax Asset -- -- -- --
7. Goodwill -- -- -- --
8. Other Assets -- -- -- --
9. Intercompany Non Filing Company -- -- -- --
----------- ------------ ------------ -----------
TOTAL ASSETS 3,063,642 2,603,734 2,263,098 (43,915)
=========== ============ ============ ===========
</Table>
* Per Schedules and Statement of Affairs
MOR-2
CASE NAME: NATIONWIDE WEST, L.P. CASE NUMBER: 01-80033-G3-11
COMPARATIVE BALANCE SHEETS
<Table>
<Caption>
LIABILITIES & OWNER'S MONTH MONTH MONTH MONTH MONTH
EQUITY FILING DATE* JANUARY FEBRUARY MARCH APRIL MAY
- --------------------- ----------- ----------- ----------- ----------- ----------- -----------
LIABILITIES:
POST-PETITION LIABILITIES (MOR-4) 731,205 1,531,964 1,663,374 1,639,085 1,379,296
PRE-PETITION LIABILITIES: -- --
Notes Payable - Secured 11,086,291 10,644,338 10,069,367 9,160,106 8,107,751 1,868,242
Priority Debt 561,231 393,905 205,953 166,567 164,436 119,101
Federal Income Tax (140,368) (140,368) (140,368) (140,368) --
FICA/Withholding -- -- -- -- -- --
Unsecured Debt 1,240,078 1,436,842 466,748 482,525 734,735 1,077,369
Intercompany 10,328,598 10,184,084 10,144,517 10,185,247 10,332,432 10,332,432
Other -- -- -- -- -- --
----------- ----------- ----------- ----------- ----------- -----------
TOTAL PRE-PETITION LIABILITIES 23,216,198 22,518,801 20,746,218 19,854,077 19,198,986 13,397,144
----------- ----------- ----------- ----------- ----------- -----------
TOTAL LIABILITIES 23,216,198 23,250,007 22,278,182 21,517,451 20,838,071 14,776,440
=========== =========== =========== =========== =========== ===========
OWNER'S EQUITY (DEFICIT):
Preferred Stock -- -- --
Common Stock 10 10 10 10 10 10
ADDITIONAL PAID-IN CAPITAL 9,990 9,990 9,990 9,990 9,990 9,990
RETAINED EARNINGS: FILING DATE (7,353,860) (7,353,860) (7,353,860) (7,353,860) (7,353,860) (7,353,860)
RETAINED EARNINGS: POST FILING DATE -- (237,837) (2,018,854) (2,396,422) (2,513,402) (4,009,706)
----------- ----------- ----------- ----------- ----------- -----------
TOTAL OWNER'S EQUITY (NET WORTH) (7,343,860) (7,581,697) (9,362,714) (9,740,282) (9,857,262) (11,353,566)
----------- ----------- ----------- ----------- ----------- -----------
TOTAL LIABILITIES &
OWNER'S EQUITY 15,872,338 15,668,310 12,915,468 11,777,169 10,980,809 3,422,874
=========== =========== =========== =========== =========== ===========
<Caption>
LIABILITIES & OWNER'S MONTH MONTH MONTH MONTH
EQUITY JUNE JULY AUGUST SEPTEMBER
- --------------------- ----------- ----------- ----------- -----------
LIABILITIES:
POST-PETITION LIABILITIES (MOR-4) 1,203,264 1,384,961 1,139,822 60,120
PRE-PETITION LIABILITIES:
Notes Payable - Secured 1,444,115 1,157,733 941,515 4,125
Priority Debt 128,976 134,189 133,500 123,731
Federal Income Tax -- -- -- --
FICA/Withholding -- -- -- --
Unsecured Debt 1,260,557 1,361,835 1,497,347 1,715,542
Intercompany 10,332,432 10,332,432 10,332,432 10,332,432
Other -- -- -- --
----------- ----------- ----------- -----------
TOTAL PRE-PETITION LIABILITIES 13,166,080 12,986,189 12,904,794 12,175,831
----------- ----------- ----------- -----------
TOTAL LIABILITIES 14,369,344 14,371,151 14,044,616 12,235,951
=========== =========== =========== ===========
OWNER'S EQUITY (DEFICIT):
Preferred Stock
Common Stock 10 10 10 10
ADDITIONAL PAID-IN CAPITAL 9,990 9,990 9,990 9,990
RETAINED EARNINGS: FILING DATE (7,353,860) (7,353,860) (7,353,860) (7,353,860)
RETAINED EARNINGS: POST FILING DATE (3,961,842) (4,423,556) (4,423,556) (4,423,556)
----------- ----------- ----------- -----------
TOTAL OWNER'S EQUITY (NET WORTH) (11,305,702) (11,767,416) (11,781,517) (12,279,865)
----------- ----------- ----------- -----------
TOTAL LIABILITIES &
OWNER'S EQUITY 3,063,642 2,603,734 2,263,098 (43,915)
=========== =========== =========== ===========
</Table>
* Per Schedules and Statement of Affairs
MOR-3
CASE NAME: NATIONWIDE WEST, L.P. CASE NUMBER: 01-80033-G3-11
SCHEDULE OF POST-PETITION LIABILITIES
<Table>
<Caption>
MONTH MONTH MONTH MONTH MONTH
JANUARY FEBRUARY MARCH APRIL MAY
---------- ---------- ---------- ---------- ----------
TRADE ACCOUNTS PAYABLE 180,238 410,773 939,552 644,408 405,924
---------- ---------- ---------- ---------- ----------
TAX PAYABLE
Federal Payroll Taxes 42,794 48,973 58,058 42,716 22,191
State Payroll & Sales -- (12,363) (12,899) (5,957) 10,039
Ad Valorem Taxes 6,222 4,599 16,361 21,301 25,175
Other Taxes -- -- -- -- --
---------- ---------- ---------- ---------- ----------
TOTAL TAXES PAYABLE 49,016 41,208 61,520 58,061 57,405
========== ========== ========== ========== ==========
SECURED DEBT POST-PETITION -- 125,870 310,474 500,159 603,083
ACCRUED INTEREST PAYABLE -- -- -- -- --
* ACCRUED PROFESSIONAL FEES -- 5,000 4,208 1,805 --
OTHER ACCRUED LIABILITIES:
1. Deposits 57,913 71,654 -- -- --
2. Salaries 7,864 110,495 112,460 93,416 57,171
3. Cost of Sales -- 448,232 -- -- --
4. Associates Advances -- 27,559 27,559 118,042 118,042
5. Intercompany 436,174 291,172 207,601 223,194 137,671
---------- ---------- ---------- ---------- ----------
TOTAL POST-PETITION LIABILITIES (MOR-3) 731,205 1,531,964 1,663,374 1,639,085 1,379,296
========== ========== ========== ========== ==========
</Table>
<Table>
<Caption>
MONTH MONTH MONTH MONTH
JUNE JULY AUGUST SEPTEMBER
---------- ---------- ---------- ----------
TRADE ACCOUNTS PAYABLE 327,190 263,357 480,112 439,630
---------- ---------- ---------- ----------
TAX PAYABLE
Federal Payroll Taxes 34,158 29,677 45,185 49,862
State Payroll & Sales 18,232 20,518 23,064 15,193
Ad Valorem Taxes 30,095 31,227 (34,622) 19,264
Other Taxes -- -- -- --
---------- ---------- ---------- ----------
TOTAL TAXES PAYABLE 82,485 81,422 33,627 84,319
========== ========== ========== ==========
SECURED DEBT POST-PETITION 409,975 652,749 -- 526
ACCRUED INTEREST PAYABLE -- -- -- --
* ACCRUED PROFESSIONAL FEES -- -- -- --
OTHER ACCRUED LIABILITIES:
1. Deposits -- -- -- --
2. Salaries 71,853 60,929 49,787 (2,029)
3. Cost of Sales -- -- -- --
4. Associates Advances 212,216 239,523 528,315 --
5. Intercompany 99,545 86,980 47,981 (462,326)
---------- ---------- ---------- ----------
TOTAL POST-PETITION LIABILITIES (MOR-3) 1,203,264 1,384,961 1,139,822 60,120
========== ========== ========== ==========
</Table>
* PAYMENT REQUIRES COURT APPROVAL.
MOR-4
CASE NAME: NATIONWIDE WEST, L.P. CASE NUMBER: 01-80033-G3-11
AGING OF POST-PETITION LIABILITIES
MONTH OF SEPTEMBER 2001
<Table>
<Caption>
AD-VALOREM,
DAYS TOTAL TRADE ACCTS FED TAXES STATE TAXES OTHER TAXES OTHER
- ---- ------------ ------------ ------------ ------------ ------------ ------------
0-30 60,120 439,630 49,862 15,193 19,264 (463,829)
31-60 --
61-90 --
91+ --
TOTAL 60,120 439,630 49,862 15,193 19,264 (463,829)
</Table>
AGING OF ACCOUNTS RECEIVABLE
<Table>
<Caption>
MONTH JANUARY FEBRUARY MARCH APRIL MAY
---------- ---------- ---------- ---------- ---------- ----------
0-30 DAYS (61,818) -- -- -- --
31-60 DAYS 476,651 -- -- -- --
61-90 DAYS 461,388 201,235 -- -- --
91 + DAYS 1,145,017 799,264 752,438 765,497 469,504
TOTAL 2,021,238 1,000,500 752,438 765,497 469,504
<Caption>
MONTH JUNE JULY AUGUST SEPTEMBER
---------- ---------- ---------- ---------- ----------
0-30 DAYS --
31-60 DAYS --
61-90 DAYS
91 + DAYS 258,014 483,435 240,226 (65,621)
TOTAL 258,014 483,435 240,226 (65,621)
</Table>
MOR-5
CASE NAME: NATIONWIDE WEST, L.P. CASE NUMBER: 01-80033-G3-11 01-80033-G3-11
STATEMENT OF INCOME (LOSS)
<Table>
<Caption>
MONTH JANUARY FEBRUARY MARCH APRIL MAY
----- ---------- ---------- ---------- ---------- ----------
REVENUES (MOR-1) (191,863) 151,035 1,316,048 1,194,694 1,188,756
TOTAL COST OF REVENUES (159,529) 51,398 1,460,271 1,120,933 1,362,503
GROSS PROFIT (32,334) 99,637 (144,223) 73,761 (173,747)
OPERATING EXPENSES:
Selling & Marketing 78,814 175,013 152,797 87,802 127,172
General & Administrative 21,363 70,704 64,398 98,273 65,360
Insiders Compensation 6,923 15,347 20,769 11,817 14,440
Professional Fees -- 2,500 12,721 7,437
Impairment of Assets 1,778,801 (236,859) 1,101,317
Other (attach list) -- -- -- (28,421) --
---------- ---------- ---------- ---------- ----------
TOTAL OPERATING EXPENSES 107,100 2,039,865 3,605 182,192 1,315,726
========== ========== ========== ========== ==========
INCOME BEFORE INT, DEPR/TAX (MOR-1) (139,434) (1,940,228) (147,828) (108,431) (1,489,473)
INTEREST EXPENSE 56,063 42,514 -- 2,628 --
DEPRECIATION 42,340 36,112 34,728 6,831 6,831
OTHER (INCOME) EXPENSE * -- -- (42,826) (910) --
OTHER ITEMS ** -- -- -- -- --
---------- ---------- ---------- ---------- ----------
TOTAL INT, DEPR & OTHER ITEMS 98,403 78,626 (8,098) 8,549 6,831
---------- ---------- ---------- ---------- ----------
NET INCOME BEFORE TAXES (237,837) (2,018,854) (139,730) (116,980) (1,496,304)
========== ========== ========== ========== ==========
FEDERAL INCOME TAXES -- -- -- -- --
---------- ---------- ---------- ---------- ----------
NET INCOME (LOSS) (MOR-1) (237,837) (2,018,854) (139,730) (116,980) (1,496,304)
========== ========== ========== ========== ==========
<Caption>
MONTH JUNE JULY AUGUST SEPTEMBER FILING TO DATE
---------- ---------- ---------- ---------- --------------
REVENUES (MOR-1) 1,449,252 1,159,354 1,185,691 519,852 7,972,819
TOTAL COST OF REVENUES 1,562,082 1,344,727 1,028,246 668,909 8,439,540
GROSS PROFIT (112,830) (185,373) 157,445 (149,057) (466,721)
OPERATING EXPENSES:
Selling & Marketing 157,408 110,421 113,870 62,461 1,065,758
General & Administrative 98,592 138,976 101,876 121,913 781,455
Insiders Compensation 9,231 9,231 13,846 9,231 110,835
Professional Fees 9,496 3,720 11 (601) 35,284
Impairment of Assets (445,996) -- -- 4,110 2,201,374
Other (attach list) -- -- -- -- (28,421)
--
---------- ---------- ---------- ---------- --------------
TOTAL OPERATING EXPENSES (171,269) 262,348 229,603 197,114 4,166,285
========== ========== ========== ========== ==============
INCOME BEFORE INT, DEPR/TAX (MOR-1) 58,439 (447,721) (72,158) (346,171) (4,633,006)
INTEREST EXPENSE 3,719 7,245 4,385 -- 116,554
DEPRECIATION 6,830 6,835 6,715 13,944 161,166
OTHER (INCOME) EXPENSE * 26 -- -- (43,710)
OTHER ITEMS ** --
---------- ---------- ---------- ---------- --------------
TOTAL INT, DEPR & OTHER ITEMS 10,575 14,080 11,100 13,944 234,010
---------- ---------- ---------- ---------- --------------
NET INCOME BEFORE TAXES 47,864 (461,801) (83,258) (360,115) (4,867,016)
========== ========== ========== ========== ==============
FEDERAL INCOME TAXES -- -- --
---------- ---------- ---------- ---------- --------------
NET INCOME (LOSS) (MOR-1) 47,864 (461,801) (83,258) (360,115) (4,867,016)
========== ========== ========== ========== ==============
</Table>
Accrual Accounting Required, Otherwise Footnote With Explanation
* Footnote Mandatory
** Unusual and/or infrequent item(s) outside the ordinary course of business;
requires footnote
MOR-6
CASE NAME: NATIONWIDE WEST, L.P. CASE NUMBER: 01-80033-G3-11
<Table>
<Caption>
MONTH MONTH MONTH MONTH MONTH
CASH RECEIPTS AND DISBURSEMENTS JANUARY FEBRUARY MARCH APRIL MAY
- ------------------------------- ---------- ---------- ---------- ---------- ----------
1. CASH - BEGINNING OF MONTH 265,800 632,185 278,194 506,032 292,863
RECEIPTS:
2. CASH SALES 51,832 952,052 658,569 563,090 817,034
3. COLLECTION OF ACCOUNTS RECEIVABLE 428,760 110,241 196,875 --
4. LOANS & ADVANCES (ATTACH LIST) -- --
5. SALE OF ASSETS -- --
6. CUSTOMER DEPOSITS 8,346 110,084 --
7. INTERCOMPANY 94,196 -- 7,127 46,627
8. REFUNDS -- 2,244 --
---------- ---------- ---------- ---------- ----------
TOTAL RECEIPTS 583,134 1,174,621 855,444 570,217 863,661
========== ========== ========== ========== ==========
(WITHDRAWAL) CONTRIBUTION BY INDIVIDUAL DEBTOR MFR-2*
DISBURSEMENTS:
9. NET PAYROLL --
10. PAYROLL TAXES PAID -- 320,232 5,906 10,361 2,844
11. SALES, USE & OTHER TAXES PAID -- 5,980 -- 2,729 8,308
12. SECURED / RENTAL / LEASES 181,835 526,590 155,900 422,764 369,845
13. UTILITIES -- 868 22,915 19,453 21,772
14. INSURANCE 15,479 19,538 52,176 10,662 10,997
15. INVENTORY PURCHASES -- 22,836 126,239 160,219 382,355
16. VEHICLE EXPENSES 4,114 3,578 3,918 3,319 3,292
17. TRAVEL ENTERTAINMENT 2,316 1,832 1,645 5,030 1,319
18. REPAIRS, MAINTENANCE & SUPPLIES 404 10,613 33,399 31,307 56,391
19. ADMINISTRATIVE & SELLING 12,600 7,011 23,748 33,821 67,990
20. INTERCOMPANY -- 548,785 129,958
21. DELIVERY -- 53,261 71,550 75,813 57,628
22. CUSTOMER REFUNDS 7,490
---------- ---------- ---------- ---------- ----------
TOTAL DISBURSEMENTS FROM OPERATIONS 216,749 1,528,612 627,353 775,477 982,741
========== ========== ========== ========== ==========
21. PROFESSIONAL FEES -- 252 410 3,767
22. U.S. TRUSTEE FEES -- 7,500 250
23. OTHER REORGANIZATION EXPENSES (ATTACH LIST) --
---------- ---------- ---------- ---------- ----------
TOTAL DISBURSEMENTS 216,749 1,528,612 627,605 783,386 986,758
========== ========== ========== ========== ==========
24. NET CASH FLOW 366,385 (353,991) 227,839 (213,169) (123,097)
---------- ---------- ---------- ---------- ----------
25. CASH - END OF MONTH (MOR-2) 632,185 278,194 506,032 292,863 169,766
========== ========== ========== ========== ==========
<Caption>
MONTH MONTH MONTH MONTH FILING TO
CASH RECEIPTS AND DISBURSEMENTS JUNE JULY AUGUST SEPTEMBER DATE
- ------------------------------- ---------- ---------- ---------- ---------- --------------
1. CASH - BEGINNING OF MONTH 169,766 235,920 99,852 181,530 265,800
RECEIPTS:
2. CASH SALES 826,248 366,274 716,788 194,402 5,146,289
3. COLLECTION OF ACCOUNTS RECEIVABLE -- -- 305,846 1,041,722
4. LOANS & ADVANCES (ATTACH LIST) --
5. SALE OF ASSETS --
6. CUSTOMER DEPOSITS 118,430
7. INTERCOMPANY 29,959 177,909
8. REFUNDS 2,244
---------- ---------- ---------- ---------- --------------
TOTAL RECEIPTS 826,248 366,274 716,788 530,207 6,486,594
========== ========== ========== ========== ==============
(WITHDRAWAL) CONTRIBUTION BY INDIVIDUAL DEBTOR MFR-2*
DISBURSEMENTS:
9. NET PAYROLL 131 -- 90,016 90,147
10. PAYROLL TAXES PAID -- -- 1,276 23,271 363,890
11. SALES, USE & OTHER TAXES PAID 13,813 30,385 22,776 23,509 107,499
12. SECURED / RENTAL / LEASES 363,782 29,387 20,539 17,410 2,088,051
13. UTILITIES 26,589 16,752 17,220 6,446 132,015
14. INSURANCE 13,100 20,699 -- 8,830 151,481
15. INVENTORY PURCHASES 104,403 352,835 480,001 408,407 2,037,294
16. VEHICLE EXPENSES 2,946 2,627 2,575 1,281 27,650
17. TRAVEL ENTERTAINMENT 2,772 1,249 1,762 1,259 19,184
18. REPAIRS, MAINTENANCE & SUPPLIES 73,163 19,860 6,899 1,766 233,801
19. ADMINISTRATIVE & SELLING 13,751 9,719 6,746 2,399 177,783
20. INTERCOMPANY 86,549 13,613 74,129 853,034
21. DELIVERY 57,108 -- -- -- 315,360
22. CUSTOMER REFUNDS -- 7,490
---------- ---------- ---------- ---------- --------------
TOTAL DISBURSEMENTS FROM OPERATIONS 757,974 497,257 633,922 584,594 6,604,679
========== ========== ========== ========== ==============
21. PROFESSIONAL FEES 2,120 1,187 7,735
22. U.S. TRUSTEE FEES -- -- -- -- 7,750
23. OTHER REORGANIZATION EXPENSES (ATTACH LIST) 5,086 -- 3,788 8,874
---------- ---------- ---------- ---------- --------------
TOTAL DISBURSEMENTS 760,094 502,342 635,109 588,382 6,629,038
========== ========== ========== ========== ==============
24. NET CASH FLOW 66,154 (136,068) 81,678 (58,175) (142,444)
---------- ---------- ---------- ---------- --------------
25. CASH - END OF MONTH (MOR-2) 235,920 99,852 181,530 123,355 123,355
========== ========== ========== ========== ==============
</Table>
* applies to Individual debtor's only.
MOR-7
CASE NAME: NATIONWIDE WEST, L.P. CASE NUMBER: 01-80033-G3-12
CASH ACCOUNT RECONCILIATION
MONTH OF SEPTEMBER 2001
<Table>
<Caption>
BANK NAME Bank of America Bank of America Colorado Springs
- --------- --------------- --------------- ---------------
ACCOUNT NUMBER # 3755500140 # 60453
ACCOUNT TYPE OPERATING PAYROLL DEPOSITORY
--------------- --------------- ---------------
BANK BALANCE 101,644 19,811 --
DEPOSIT IN TRANSIT -- -- --
OUTSTANDING CHECKS -- -- --
--------- ------ ------
ADJUSTED BANK BALANCE 101,644 19,811 --
========= ====== ======
BEGINNING CASH - PER BOOKS 174,724 (294) --
RECEIPTS 500,248 --
TRANSFERS BETWEEN ACCOUNTS 15,054 20,105 --
(WITHDRAWAL) CONTRIBUTION - BY INDIVIDUAL DEBTOR MFR-2 -- --
CHECKS / OTHER DISBURSEMENTS (588,382) -- --
ENDING CASH - PER BOOKS 101,644 19,811 --
========= ====== ======
<Caption>
BANK NAME Petty Cash
- --------- ---------------
ACCOUNT NUMBER
GRAND
ACCOUNT TYPE OTHER FUNDS TOTAL
--------------- ---------------
BANK BALANCE 1,900 123,355
DEPOSIT IN TRANSIT -- --
OUTSTANDING CHECKS -- --
ADJUSTED BANK BALANCE 1,900 123,355
BEGINNING CASH - PER BOOKS 7,100 181,530
RECEIPTS -- 500,248
TRANSFERS BETWEEN ACCOUNTS (5,200) 29,959
(WITHDRAWAL) CONTRIBUTION - BY INDIVIDUAL DEBTOR MFR-2 --
CHECKS / OTHER DISBURSEMENTS -- (588,382)
ENDING CASH - PER BOOKS 1,900 123,355
====== ========
</Table>
MOR-8
CASE NAME: NATIONWIDE WEST, L.P. CASE NUMBER: 01-80033-G3-11
PAYMENTS TO INSIDERS AND PROFESSIONALS
OF THE TOTAL DISBURSEMENTS SHOWN FOR THE MONTH, LIST THE AMOUNT PAID TO INSIDERS
(AS DEFINED IN SECTION 101(30)(A)-(F) OF THE U. S. BANKRUPTCY CODE) AND THE
PROFESSIONALS. ALSO, FOR INSIDERS IDENTIFY THE TYPE OF COMPENSATION PAID (e.g.,
SALARY, COMMISSION, BONUS, ETC.) (ATTACH ADDITIONAL PAGES AS NECESSARY).
<Table>
<Caption>
MONTH MONTH MONTH MONTH MONTH
INSIDERS: NAME/POSITION/COMP TYPE JANUARY FEBRUARY MARCH APRIL MAY
- --------------------------------- --------- --------- --------- --------- ---------
1. Finis F. Teeter/President HSTR General Holdings -- -- --
2. Ronald Mccaslin/VP, Director Hstr General Holdings -- -- --
3. Charles N. Carney, Jr./VP, Director Hstr General Holdings -- -- --
4. Richard A. Carver/VP Hstr General Holdings -- -- --
5. Jackie Holland/VP Hstr General Holdings -- -- --
6. Craig A. Reynolds/VP, Secretary Hstr General Holdings -- -- --
7. Kristi E. Gross/Asst Secretary Hstr General Holdings -- -- --
8. Mary Morton/Asst Secretary Hstr General Holdings -- -- --
9. Dennis L. Jones/President, Director Hstr Retail Holdings -- -- --
10. Ronald Krueger/VP, Treasurer, Director Hstr Retail Hold -- -- --
11. Robert Grier/Secretary, Director Hstr Retail Hold -- -- --
12. Beth L. Peoples/Asst Secretary, Asst Treasurer Hstr Ret Hold -- -- --
13. Raymond M. McKinney/President Pacific Ii Homes/salary 6,923 15,347 20,769 11,818 11,429
--------- --------- --------- --------- ---------
TOTAL INSIDERS (MOR-1) 6,923 15,347 20,769 11,818 11,429
========= ========= ========= ========= =========
<Caption>
MONTH MONTH MONTH MONTH
INSIDERS: NAME/POSITION/COMP TYPE JUNE JULY AUGUST SEPTEMBER
- --------------------------------- --------- --------- --------- ---------
1. Finis F. Teeter/President HSTR General Holdings -- -- --
2. Ronald McCaslin/VP, Director Hstr General Holdings -- -- --
3. Charles N. Carney, Jr./VP, Director Hstr General Holdings -- -- --
4. Richard A. Carver/VP Hstr General Holdings -- -- --
5. Jackie Holland/VP Hstr General Holdings -- -- --
6. Craig A. Reynolds/VP, Secretary Hstr General Holdings -- -- --
7. Kristi E. Gross/Asst Secretary Hstr General Holdings -- -- --
8. Mary Morton/Asst Secretary Hstr General Holdings -- -- --
9. Dennis L. Jones/President, Director Hstr Retail Holdings -- -- --
10. Ronald Krueger/VP, Treasurer, Director Hstr Retail Hold -- -- --
11. Robert Grier/Secretary, Director Hstr Retail Hold -- -- --
12. Beth L. Peoples/Asst Secretary, Asst Treasurer Hstr Ret Hold -- -- --
13. Raymond M. McKinney/President Pacific II Homes/salary 9,231 9,231 13,846 9,231
--------- --------- --------- ---------
TOTAL INSIDERS (MOR-1) 9,231 9,231 13,846 9,231
========= ========= ========= =========
</Table>
<Table>
<Caption>
MONTH MONTH MONTH MONTH MONTH
PROFESSIONALS/NAME/ORDER DATE JANUARY FEBRUARY MARCH APRIL MAY
- ----------------------------- --------- --------- --------- --------- ---------
1. Floyd, Isgur, Rios & Warlich -- -- 252 410 1,685
2. Strategic Capital Corporation -- -- -- -- 2,082
3 -- -- -- -- --
4 -- -- -- -- --
5 -- -- -- -- --
6 -- -- -- -- --
--------- --------- --------- --------- ---------
TOTAL PROFESSIONALS (MOR-1) -- -- 252 410 3,767
========= ========= ========= ========= =========
<Caption>
MONTH MONTH MONTH MONTH
PROFESSIONALS/NAME/ORDER DATE JUNE JULY AUGUST SEPTEMBER
- ----------------------------- --------- --------- --------- ---------
1. Floyd, Isgur, Rios & Warlich 68 -- --
2. Strategic Capital Corporation 2,052 2,836 1,176 1,288
3 -- -- -- --
4 -- -- -- --
5 -- -- -- --
6 -- -- -- --
--------- --------- --------- ---------
TOTAL PROFESSIONALS (MOR-1) 2,120 2,836 1,176 1,288
========= ========= ========= =========
</Table>
MOR-9
UNITED STATES BANKRUPTCY COURT
SOUTHERN DISTRICT OF TEXAS
HOUSTON DIVISION
<Table>
CASE NAME: OAK CREEK HOMES, L. P. PETITION DATE: JANUARY 11, 2001
CASE NUMBER: 01-80034-G3-11
MONTHLY OPERATING REPORT SUMMARY FOR MONTH SEPTEMBER YEAR 2001
--------- ----
MONTH JANUARY FEBRUARY MARCH APRIL MAY
----- ---------- ---------- ---------- ---------- ----------
REVENUES (MOR-6) 376,768 1,386,905 2,007,348 2,894,296 1,726,766
INCOME BEFORE INT, DEPREC./TAX
(MOR-6) (342,320) (751,150) 1,099,948 1,463,812 291,774
NET INCOME (LOSS) (MOR-6) (352,790) (761,553) 1,089,712 1,453,625 281,611
PAYMENTS TO INSIDERS (MOR-9) -- -- -- -- --
PAYMENTS TO PROFESSIONALS (MOR-9) -- -- -- -- 3,147
TOTAL DISBURSEMENTS (MOR-8) 1,002,826 914,945 1,335,310 1,282,618 1,570,750
<Caption>
MONTH JUNE JULY AUGUST SEPTEMBER
----- ---------- ---------- ---------- ----------
REVENUES (MOR-6) 2,304,881 1,874,266 1,971,192 1,587,392
INCOME BEFORE INT, DEPREC./TAX
(MOR-6) 334,690 18,594 155,864 416,802
NET INCOME (LOSS) (MOR-6) 324,480 8,506 145,776 412,299
PAYMENTS TO INSIDERS (MOR-9) -- -- -- --
PAYMENTS TO PROFESSIONALS (MOR-9) 1,090 -- 2,674 1,274
TOTAL DISBURSEMENTS (MOR-8) 1,530,744 1,411,917 1,429,954 1,707,371
</Table>
*** The ORIGINAL of this document MUST BE FILED with the United States
Bankruptcy Court and a COPY MUST BE SENT to the United States Trustee ***
- --------------------------------------------------------------------------------
REQUIRED INSURANCE MAINTAINED
AS OF SIGNATURE DATE
<Table>
<Caption>
EXP.
DATE
----
CASUALTY YES (X) NO ( ) 06/30/02
LIABILITY YES (X) NO ( ) 06/30/02
VEHICLE YES (X) NO ( ) 06/30/02
WORKER'S YES (X) NO ( ) 05/31/02
OTHER - DIRECTOR/OFFICER YES (X) NO ( ) 01/23/02
</Table>
- --------------------------------------------------------------------------------
ATTORNEY NAME:
FIRM: Floyd, Isgur, Rios & Warlich, P. C.
Address: 700 Louisiana, Suite 4600
Address:
City, State, ZIP: Houston, TX 77002-2732
Telephone: 713-222-1470
Fax: 713-222-1475
- --------------------------------------------------------------------------------
<Table>
<Caption>
CIRCLE ONE
Are all accounts receivable being collected within terms? YES NO
Are all posted-petition liabilities, including taxes,
being paid within terms? YES NO
Have any pre-petition liabilities been paid? YES NO
If so, describe. PURSUANT TO COURT ORDER AUTHORIZING
PAYMENTS OF PRE-PETITION WAGES, SALARIES, COMMISSIONS AND
COMPENSATION SIGNED JANUARY 11, 2001.
Are all funds received being deposited into DIP bank accounts? YES NO
Were any assets disposed of outside the normal course of business? YES NO
If so, describe.
Are all U.S. Trustee Quarterly Fee Payments current? YES NO
What is the status of your Plan of Reorganization? PLAN OF REORGANIZATION
CONFIRMED BY COURT ON AUGUST 14, 2001. EFFECTIVE DATE OF REORGANIZATION -
OCTOBER 3, 2001.
</Table>
I certify under penalty of perjury that the
following complete Monthly Operating Report
(MOR), consisting of MOR-1 through MOR-9
plus attachments, is true and correct.
SIGNED /s/ CRAIG A. REYNOLDS
-------------------------------------
TITLE Vice President of Finance
-------------------------------------
MOR-1
CASE NAME: OAK CREEK HOMES, L.P. CASE NUMBER: 01-80034-G3-11
COMPARATIVE BALANCE SHEETS
<Table>
<Caption>
MONTH MONTH MONTH MONTH
ASSETS FILING DATE* JANUARY FEBRUARY MARCH APRIL
------ ------------ ---------- ---------- ---------- ----------
CURRENT ASSETS
Cash 741,999 71,498 305,661 177,638 488,158
Accounts Receivable, Net 180,733 833,403 630,141 566,021 1,855,301
Inventory: Lower of Cost or Market 1,375,348 1,311,195 821,451 1,416,367 654,500
Prepaid Expenses -- -- -- -- --
Investments -- -- -- -- --
Other -- -- -- -- --
---------- ---------- ---------- ---------- ----------
TOTAL CURRENT ASSETS 2,298,081 2,216,097 1,757,252 2,160,027 2,997,958
========== ========== ========== ========== ==========
PROPERTY, PLANT&EQUIP, @ COST 2,593,817 2,593,817 2,593,817 2,593,817 2,593,817
Less Accumulated Depreciation 1,638,995 1,649,465 1,659,868 1,670,104 1,680,291
---------- ---------- ---------- ---------- ----------
Net Book Value of PP & E 954,822 944,352 933,949 923,713 913,526
========== ========== ========== ========== ==========
OTHER ASSETS:
1. Tax Deposits -- -- -- -- --
2. Investments in Subs -- -- -- -- --
3. Deposits 48,764 48,764 48,764 41,568 41,568
4. Interests in Insurance Policies -- -- -- -- --
5. Note Receivable 3,379 3,379 3,379 -- --
6. Other Assets 121,218 121,218 121,218 121,218 121,218
7. Intercompany 18,136,354 18,109,637 18,438,419 18,374,729 18,281,000
8. Intercompany Post-Petition -- 17,155 -- -- 457,406
---------- ---------- ---------- ---------- ----------
TOTAL ASSETS 21,562,618 21,460,601 21,302,981 21,621,254 22,812,676
========== ========== ========== ========== ==========
<Caption>
MONTH MONTH MONTH MONTH MONTH
ASSETS MAY JUNE JULY AUGUST SEPTEMBER
------ ---------- ---------- ---------- ---------- ----------
CURRENT ASSETS
Cash 909,894 929,280 1,702,158 1,966,902 2,257,757
Accounts Receivable, Net 1,296,268 1,843,840 1,066,987 1,182,957 1,091,205
Inventory: Lower of Cost or Market 841,789 831,952 875,612 261,706 894,033
Prepaid Expenses -- 35,185 159,572 288,819 555,987
Investments -- -- -- -- --
Other -- -- -- -- --
---------- ---------- ---------- ---------- ----------
TOTAL CURRENT ASSETS 3,047,951 3,640,257 3,804,330 3,700,383 4,798,983
========== ========== ========== ========== ==========
PROPERTY, PLANT&EQUIP, @ COST 2,593,817 2,593,817 2,601,704 2,601,704 2,631,704
Less Accumulated Depreciation 1,690,454 1,700,665 1,710,753 1,720,841 1,730,897
---------- ---------- ---------- ---------- ----------
Net Book Value of PP & E 903,363 893,152 890,951 880,862 900,807
========== ========== ========== ========== ==========
OTHER ASSETS:
1. Tax Deposits -- -- -- -- --
2. Investments in Subs -- -- -- -- --
3. Deposits 41,568 41,568 36,568 36,568 41,568
4. Interests in Insurance Policies -- -- -- -- --
5. Note Receivable -- -- -- -- --
6. Other Assets -- -- -- -- --
7. Intercompany 18,281,000 18,281,000 18,281,000 18,281,000 18,281,000
8. Intercompany Post-Petition 363,923 274,899 58,493 2,247 3,153
---------- ---------- ---------- ---------- ----------
TOTAL ASSETS 22,637,804 23,130,875 23,071,341 22,901,060 24,025,510
========== ========== ========== ========== ==========
</Table>
* Per Schedules and Statement of Affairs
MOR-2
CASE NAME: OAK CREEK HOMES, L.P. CASE NUMBER: 01-80034-G3-11
COMPARATIVE BALANCE SHEETS
<Table>
<Caption>
LIABILITIES & OWNER'S MONTH MONTH MONTH MONTH
EQUITY FILING DATE* JANUARY FEBRUARY MARCH APRIL
- --------------------- ------------ ------------ ------------ ------------ ------------
LIABILITIES:
POST-PETITION LIABILITIES (MOR-4) 445,654 1,171,559 599,159 515,075
------------ ------------ ------------ ------------
PRE-PETITION LIABILITIES:
Notes Payable - Secured -- --
Priority Debt 245,445 120,205 120,205 178,028 178,049
Federal Income Tax 211,000 211,000 211,000 211,000 211,000
Fica/withholding -- -- -- -- --
Unsecured Debt 2,540,325 2,470,684 2,348,712 2,091,849 1,913,710
Other -- -- -- -- --
------------ ------------ ------------ ------------ ------------
TOTAL PRE-PETITION LIABILITIES 2,996,770 2,801,890 2,679,917 2,480,878 2,302,759
------------ ------------ ------------ ------------ ------------
TOTAL LIABILITIES 2,996,770 3,247,544 3,851,476 3,080,037 2,817,834
============ ============ ============ ============ ============
OWNER'S EQUITY (DEFICIT):
Preferred Stock -- -- -- -- --
Common Stock -- -- -- -- --
ADDITIONAL PAID-IN CAPITAL -- -- -- -- --
PARTNERS CAPITAL 20,609,751 20,609,751 20,609,751 20,609,751 20,609,751
RETAINED EARNINGS: Filing Date (2,043,903) (2,043,903) (2,043,903) (2,043,903) (2,043,903)
RETAINED EARNINGS: Post Filing Date -- (352,790) (1,114,344) (24,631) 1,428,994
------------ ------------ ------------ ------------ ------------
TOTAL OWNER'S EQUITY (NET WORTH) 18,565,848 18,213,058 17,451,504 18,541,217 19,994,841
------------ ------------ ------------ ------------ ------------
TOTAL LIABILITIES &
OWNER'S EQUITY 21,562,618 21,460,601 21,302,981 21,621,254 22,812,676
============ ============ ============ ============ ============
<Caption>
LIABILITIES & OWNER'S MONTH MONTH MONTH MONTH MONTH
EQUITY MAY JUNE JULY AUGUST SEPTEMBER
- --------------------- ------------ ------------ ------------ ------------ -----------
LIABILITIES:
POST-PETITION LIABILITIES (MOR-4) 489,529 658,626 609,465 324,249 951,261
------------ ------------ ------------ ------------ -----------
PRE-PETITION LIABILITIES:
Notes Payable - Secured
Priority Debt 178,049 178,049 178,049 176,555 174,469
Federal Income Tax -- -- -- -- --
Fica/withholding -- -- -- -- --
Unsecured Debt 1,693,773 1,693,268 1,693,036 1,645,043 1,732,268
Other -- -- -- -- --
------------ ------------ ------------ ------------ -----------
TOTAL PRE-PETITION LIABILITIES 1,871,822 1,871,317 1,871,085 1,821,598 1,906,737
------------ ------------ ------------ ------------ -----------
TOTAL LIABILITIES 2,361,351 2,529,943 2,480,550 2,145,847 2,857,998
============ ============ ============ ============ ===========
OWNER'S EQUITY (DEFICIT):
Preferred Stock -- -- -- -- --
Common Stock -- -- -- -- --
ADDITIONAL PAID-IN CAPITAL -- -- -- -- --
PARTNERS CAPITAL 20,609,751 20,609,751 20,609,751 20,609,751 20,609,751
RETAINED EARNINGS: Filing Date (2,043,903) (2,043,903) (2,043,903) (2,043,903) (2,043,903)
RETAINED EARNINGS: Post Filing Date 1,710,605 2,035,084 2,024,943 2,024,943 2,024,943
------------ ------------ ------------ ------------ -----------
TOTAL OWNER'S EQUITY (NET WORTH) 20,276,453 20,600,932 20,590,791 20,755,213 21,167,512
------------ ------------ ------------ ------------ -----------
TOTAL LIABILITIES &
OWNER'S EQUITY 22,637,804 23,130,875 23,071,341 22,901,060 24,025,510
============ ============ ============ ============ ===========
</Table>
* Per Schedules and Statement of Affairs
MOR-3
CASE NAME: OAK CREEK HOMES, L.P. CASE NUMBER: 01-80034-G3-11
SCHEDULE OF POST-PETITION LIABILITIES
<Table>
<Caption>
MONTH MONTH MONTH MONTH MONTH
JANUARY FEBRUARY MARCH APRIL MAY
---------- ---------- --------- ---------- ----------
TRADE ACCOUNTS PAYABLE 281,738 116,121 240,767 246,240 172,793
---------- ---------- --------- ---------- ----------
TAX PAYABLE
Federal Payroll Taxes 30,942 62,868 42,740 50,702 44,103
State Payroll & SALES 11,767 56,957 55,861 59,395 43,824
Ad Valorem Taxes 9,500 19,000 28,500 38,000 47,500
Other Taxes -- -- -- -- --
---------- ---------- --------- ---------- ----------
TOTAL TAXES PAYABLE 52,210 138,825 127,100 148,097 135,427
========== ========== ========= ========== ==========
SECURED DEBT POST-PETITION
ACCRUED INTEREST PAYABLE
* ACCRUED PROFESSIONAL FEES 2,000 4,000 6,000 8,000 10,000
OTHER ACCRUED LIABILITIES:
1. Salaries 106,706 17,019 75,064 100,739 156,308
2. Worker's Comp 3,000 6,000 9,000 12,000 15,000
3. Other -- -- -- -- --
4. Intercompany -- 889,594 141,228 -- --
---------- ---------- --------- ---------- ----------
TOTAL POST-PETITION LIABILITIES (MOR-3) 445,654 1,171,559 599,159 515,075 489,529
========== ========== ========= ========== ==========
<Caption>
MONTH MONTH MONTH MONTH
JUNE JULY AUGUST SEPTEMBER
---------- ---------- ---------- ----------
TRADE ACCOUNTS PAYABLE 258,383 244,404 71,455 552,452
---------- ---------- ---------- ----------
TAX PAYABLE
Federal Payroll Taxes 46,322 120,888 73,586 35,763
State Payroll & SALES 64,921 64,789 (10,139) 111,456
Ad Valorem Taxes 57,000 66,500 76,000 85,500
Other Taxes -- -- -- --
---------- ---------- ---------- ----------
TOTAL TAXES PAYABLE 168,243 252,177 139,447 232,718
========== ========== ========== ==========
SECURED DEBT POST-PETITION
ACCRUED INTEREST PAYABLE
* ACCRUED PROFESSIONAL FEES 12,000 14,000 16,000 18,000
OTHER ACCRUED LIABILITIES:
1. Salaries 201,999 75,884 72,347 121,091
2. Worker's Comp 18,000 23,000 25,000 27,000
3. Other -- -- -- --
4. Intercompany -- -- -- --
---------- ---------- ---------- ----------
TOTAL POST-PETITION LIABILITIES (MOR-3) 658,626 609,465 324,249 951,261
========== ========== ========== ==========
</Table>
* PAYMENT REQUIRES COURT APPROVAL.
MOR-4
CASE NAME: OAK CREEK HOMES, L.P. CASE NUMBER: 01-80034-G3-11
AGING OF POST-PETITION LIABILITIES
MONTH OF SEPTEMBER 2001
<Table>
<Caption>
AD-VALOREM,
DAYS TOTAL TRADE ACCTS FED TAXES STATE TAXES OTHER TAXES OTHER
---- ---------- ----------- ---------- ----------- ------------ ----------
0-30 951,261 552,452 35,763 111,456 85,500 166,091
31-60 --
61-90 --
91 + --
TOTAL 951,261 552,452 35,763 588,214 85,500 166,091
</Table>
AGING OF ACCOUNTS RECEIVABLE
<Table>
<Caption>
MONTH JANUARY FEBRUARY MARCH APRIL MAY
----- ---------- ---------- ---------- ---------- ----------
0-30 DAYS 349,703 284,172 368,003 868,289 372,495
31-60 DAYS 46,018 256,985 -- 73,601 173,658
61-90 DAYS 128,813 32,001 158,859 12,568 29,440
91 + DAYS 308,869 56,982 39,160 900,843 720,675
TOTAL 833,403 630,141 566,021 1,855,301 1,296,268
<Caption>
MONTH JUNE JULY AUGUST SEPTEMBER
----- ---------- ---------- ---------- ----------
0-30 DAYS 1,580,758 601,926 780,767 656,897
31-60 DAYS 428,175 318,542 162,981 194,502
61-90 DAYS 9,981 80,828 102,332 2,707
91 + DAYS (175,074) 65,691 136,876 237,099
TOTAL 1,843,840 1,066,987 1,182,957 1,091,205
</Table>
MOR-5
CASE NAME: OAK CREEK HOMES, L.P. CASE NUMBER: 01-80034-G3-11
STATEMENT OF INCOME (LOSS)
<Table>
<Caption>
MONTH JANUARY FEBRUARY MARCH APRIL MAY
----- ---------- ---------- ---------- ---------- ----------
REVENUES (MOR-1) 376,768 1,386,905 2,007,348 2,894,296 1,726,766
TOTAL COST OF REVENUES 577,809 1,290,905 1,394,471 2,171,133 1,583,249
GROSS PROFIT (201,041) 96,000 612,877 723,163 143,517
OPERATING EXPENSES:
Selling & Marketing 62,257 87,950 91,988 80,680 75,772
General & Administrative 79,022 72,053 87,755 145,595 80,146
Insiders Compensation -- -- -- -- --
Professional Fees -- 2,600 8,000 --
Impairment of Assets -- 687,148 (669,414) (974,925) (304,174)
Other (attach list) -- -- --
---------- ---------- ---------- ---------- ----------
TOTAL OPERATING EXPENSES 141,280 847,150 (487,071) (740,649) (148,257)
========== ========== ========== ========== ==========
INCOME BEFORE INT, DEPR/TAX (MOR-1) (342,320) (751,150) 1,099,948 1,463,812 291,774
========== ========== ========== ========== ==========
INTEREST EXPENSE -- -- -- -- --
DEPRECIATION 10,470 10,403 10,236 10,187 10,163
OTHER (INCOME) EXPENSE * -- -- -- -- --
OTHER ITEMS ** -- -- -- -- --
---------- ---------- ---------- ---------- ----------
TOTAL INT, DEPR & OTHER ITEMS 10,470 10,403 10,236 10,187 10,163
---------- ---------- ---------- ---------- ----------
NET INCOME BEFORE TAXES (352,790) (761,553) 1,089,712 1,453,625 281,611
========== ========== ========== ========== ==========
FEDERAL INCOME TAXES -- -- -- -- --
---------- ---------- ---------- ---------- ----------
NET INCOME (LOSS) (MOR-1) (352,790) (761,553) 1,089,712 1,453,625 281,611
========== ========== ========== ========== ==========
<Caption>
MONTH JUNE JULY AUGUST SEPTEMBER FILING TO DATE
----- ---------- ---------- ---------- ---------- --------------
REVENUES (MOR-1) 2,304,881 1,874,266 1,971,192 1,587,392 1,587,392
TOTAL COST OF REVENUES 1,727,450 1,691,696 1,711,779 1,041,610 1,041,610
GROSS PROFIT 577,431 182,570 259,413 545,782 545,782
OPERATING EXPENSES:
Selling & Marketing 70,221 102,682 94,632 147,746 147,746
General & Administrative 124,785 80,293 72,869 68,824 68,824
Insiders Compensation -- -- -- --
Professional Fees 1,363 1,000 1,000 1,000 1,000
Impairment of Assets 46,372 (19,999) (64,952) (88,590) (88,590)
Other (attach list) --
---------- ---------- ---------- ---------- ----------
TOTAL OPERATING EXPENSES 242,741 163,976 103,549 128,980 128,980
========== ========== ========== ========== ==========
INCOME BEFORE INT, DEPR/TAX (MOR-1) 334,690 18,594 155,864 416,802 416,802
========== ========== ========== ========== ==========
INTEREST EXPENSE -- -- -- (5,553) (5,553)
DEPRECIATION 10,211 10,088 10,088 10,056 10,056
OTHER (INCOME) EXPENSE * -- -- -- -- --
OTHER ITEMS ** -- -- -- -- --
---------- ---------- ---------- ---------- ----------
TOTAL INT, DEPR & OTHER ITEMS 10,211 10,088 10,088 4,503 4,503
---------- ---------- ---------- ---------- ----------
NET INCOME BEFORE TAXES 324,480 8,506 145,776 412,299 412,299
========== ========== ========== ========== ==========
FEDERAL INCOME TAXES -- -- -- -- --
---------- ---------- ---------- ---------- ----------
NET INCOME (LOSS) (MOR-1) 324,480 8,506 145,776 412,299 412,299
========== ========== ========== ========== ==========
</Table>
Accrual Accounting Required, Otherwise Footnote With Explanation
* Footnote Mandatory
** Unusual and/or infrequent item(s) outside the ordinary course of business;
requires footnote
MOR-6
CASE NAME: OAK CREEK HOMES, L.P. CASE NUMBER: 01-80034-G3-11
<Table>
<Caption>
MONTH MONTH MONTH MONTH MONTH
CASH RECEIPTS AND DISBURSEMENTS JANUARY FEBRUARY MARCH APRIL MAY
- ------------------------------- ---------- ---------- ---------- ---------- ----------
1. CASH - BEGINNING OF MONTH 741,999 71,498 305,661 177,638 488,158
RECEIPTS:
2. CASH SALES -- -- --
3. COLLECTION OF ACCOUNTS RECEIVABLE 77,931 604,239 2,455,673 1,544,514 2,987,828
4. LOANS & ADVANCES (ATTACH LIST) -- -- --
5. SALE OF ASSETS -- -- --
6. INTERCOMPANY 254,394 544,869 48,624 --
7. OTHER (ATTACH LIST) -- -- --
---------- ---------- ---------- ---------- ----------
TOTAL RECEIPTS 332,325 1,149,107 2,455,673 1,593,138 2,987,828
========== ========== ========== ========== ==========
(Withdrawal) Contribution by Individual Debtor MFR-2*
DISBURSEMENTS:
8. NET PAYROLL 25,511 5,100 --
9. PAYROLL TAXES PAID -- -- 6,575 --
10. SALES, USE & OTHER TAXES PAID -- 10,591 95 67,535
11. SECURED / RENTAL / LEASES 466,667 8,995 9,933 8,443 6,123
12. UTILITIES -- 7,096 13,680 40,533 25,992
13. INSURANCE 5,111 52,295 79,791 1,160 83,029
14. INVENTORY PURCHASES 467,973 729,108 1,102,405 1,110,250 1,259,085
15. VEHICLE EXPENSES 200 -- 400 42
16. TRAVEL ENTERTAINMENT 966 737 1,510 474 2,759
17. REPAIRS, MAINTENANCE & SUPPLIES 5,298 79,233 88,989 46,789 72,432
18. ADMINISTRATIVE & SELLING 26,571 4,258 2,537 26,526 14,758
19. INTERCOMPANY 4,530 1,248,384 53 995,342
20. DELIVERY 17,531 35,973 41,815 38,994
21. OTHER (ATTACH LIST) -- --
---------- ---------- ---------- ---------- ----------
TOTAL DISBURSEMENTS FROM OPERATIONS 1,002,826 914,945 2,583,696 1,282,618 2,566,091
========== ========== ========== ========== ==========
21. PROFESSIONAL FEES -- -- -- -- 3,147
22. U.S. TRUSTEE FEES -- -- -- 8,000 250
23. OTHER REORGANIZATION EXPENSES (ATTACH LIST) -- -- -- -- --
---------- ---------- ---------- ---------- ----------
TOTAL DISBURSEMENTS 1,002,826 914,945 2,583,696 1,290,618 2,569,489
========== ========== ========== ========== ==========
24. NET CASH FLOW (670,501) 234,163 (128,023) 310,520 421,737
---------- ---------- ---------- ---------- ----------
25. CASH - END OF MONTH (MOR-2) 71,498 305,661 177,638 488,158 909,894
========== ========== ========== ========== ==========
<Caption>
MONTH MONTH MONTH MONTH FILING TO
CASH RECEIPTS AND DISBURSEMENTS JUNE JULY AUGUST SEPTEMBER DATE
- ------------------------------- ---------- ---------- ---------- ---------- ----------
1. CASH - BEGINNING OF MONTH 909,894 929,280 1,702,158 1,966,902 305,661
RECEIPTS:
2. CASH SALES -- -- -- -- --
3. COLLECTION OF ACCOUNTS RECEIVABLE 1,957,541 1,852,907 2,190,751 1,827,997 14,817,210
4. LOANS & ADVANCES (ATTACH LIST) -- -- -- -- --
5. SALE OF ASSETS -- -- -- -- --
6. INTERCOMPANY -- 331,888 -- 170,229 550,741
7. OTHER (ATTACH LIST) -- -- -- -- --
---------- ---------- ---------- ---------- ----------
TOTAL RECEIPTS 1,957,541 2,184,795 2,190,751 1,998,226 15,367,952
========== ========== ========== ========== ==========
(Withdrawal) Contribution by Individual Debtor MFR-2*
DISBURSEMENTS:
8. NET PAYROLL -- -- 4,082 290,755 294,837
9. PAYROLL TAXES PAID -- -- 649 56,389 63,613
10. SALES, USE & OTHER TAXES PAID 51,886 5,693 -- 75,212 200,421
11. SECURED / RENTAL / LEASES 6,027 29,966 23,000 29,193 112,685
12. UTILITIES 22,487 13,088 14,724 14,463 144,965
13. INSURANCE 18,652 50,162 51,809 56,871 341,473
14. INVENTORY PURCHASES 1,291,259 1,150,837 1,285,945 1,148,546 8,348,327
15. VEHICLE EXPENSES -- -- -- -- 442
16. TRAVEL ENTERTAINMENT 3,940 1,239 2,442 1,744 14,107
17. REPAIRS, MAINTENANCE & SUPPLIES 66,175 43,215 30,349 20,648 368,598
18. ADMINISTRATIVE & SELLING 20,609 37,639 16,953 13,549 132,571
19. INTERCOMPANY 407,411 -- 496,053 3,147,243
20. DELIVERY 49,710 80,079 -- -- 246,571
21. OTHER (ATTACH LIST) -- -- -- --
---------- ---------- ---------- ---------- ----------
TOTAL DISBURSEMENTS FROM OPERATIONS 1,938,155 1,411,917 1,926,007 1,707,371 13,415,855
========== ========== ========== ========== ==========
21. PROFESSIONAL FEES -- -- -- 1,383 4,530
22. U.S. TRUSTEE FEES -- -- -- -- 8,250
23. OTHER REORGANIZATION EXPENSES (ATTACH LIST) -- 9,845 31,674 1,274 42,793
---------- ---------- ---------- ---------- ----------
TOTAL DISBURSEMENTS 1,938,155 1,421,762 1,957,681 1,710,027 13,471,428
========== ========== ========== ========== ==========
24. NET CASH FLOW 19,386 772,878 264,744 290,855 1,952,097
---------- ---------- ---------- ---------- ----------
25. CASH - END OF MONTH (MOR-2) 929,280 1,702,158 1,966,902 2,257,757 2,257,757
========== ========== ========== ========== ==========
</Table>
* applies to Individual debtor's only.
MOR-7
CASE NAME: OAK CREEK HOMES, L.P. CASE NUMBER: 01-80034-G3-11
CASH ACCOUNT RECONCILIATION
MONTH OF SEPTEMBER 2001
<Table>
<Caption>
BANK NAME Bank of America Bank of America Bank One Bank One
- --------- --------------- --------------- -------------- --------------
ACCOUNT NUMBER # 3755500111 Investment # 1826021006
ACCOUNT TYPE OPERATING CHECKING GENERAL PAYROLL
-------------- -------------- -------------- --------------
BANK BALANCE 1,725,868 -- -- 531,460
DEPOSIT IN TRANSIT -- -- -- --
OUTSTANDING CHECKS -- --
-------------- -------------- -------------- --------------
ADJUSTED BANK BALANCE 1,725,868 -- -- 531,460
============== ============== ============== ==============
BEGINNING CASH - PER BOOKS 1,058,937 694,447 -- 213,089
RECEIPTS 1,827,997 -- -- --
TRANSFERS BETWEEN ACCOUNTS 546,305 (694,447) -- 318,371
(WITHDRAWAL) CONTRIBUTION - BY INDIVIDUAL DEBTOR MFR-2 -- --
CHECKS / OTHER DISBURSEMENTS (1,707,371) -- -- --
-------------- -------------- -------------- --------------
ENDING CASH - PER BOOKS 1,725,868 0 -- 531,460
============== ============== ============== ==============
<Caption>
BANK NAME Petty Cash
- --------- --------------
ACCOUNT NUMBER
ACCOUNT TYPE OTHER FUNDS TOTAL
-------------- --------------
BANK BALANCE 429 2,257,757
DEPOSIT IN TRANSIT -- --
OUTSTANDING CHECKS -- --
-------------- --------------
ADJUSTED BANK BALANCE 429 2,257,757
============== ==============
BEGINNING CASH - PER BOOKS 429 1,966,902
RECEIPTS -- 1,827,997
TRANSFERS BETWEEN ACCOUNTS -- 170,229
(WITHDRAWAL) CONTRIBUTION - BY INDIVIDUAL DEBTOR MFR-2 -- --
CHECKS / OTHER DISBURSEMENTS -- (1,707,371)
-------------- --------------
ENDING CASH - PER BOOKS 429 2,257,757
============== ==============
</Table>
MOR-8
CASE NAME: OAK CREEK HOMES, L.P. CASE NUMBER: 01-80034-G3-11
PAYMENTS TO INSIDERS AND PROFESSIONALS
OF THE TOTAL DISBURSEMENTS SHOWN FOR THE MONTH, LIST THE AMOUNT PAID TO INSIDERS
(AS DEFINED IN SECTION 101(30)(A)-(F) OF THE U. S. BANKRUPTCY CODE) AND THE
PROFESSIONALS. ALSO, FOR INSIDERS IDENTIFY THE TYPE OF COMPENSATION PAID (E.G.,
SALARY, COMMISSION, BONUS, ETC.) (ATTACH ADDITIONAL PAGES AS NECESSARY).
<Table>
<Caption>
MONTH MONTH MONTH MONTH MONTH
INSIDERS: NAME/POSITION/COMP TYPE JANUARY FEBRUARY MARCH APRIL MAY
- --------------------------------- ------- -------- ----- ----- ------
1. Finis F. Teeter/President HSTR General Holdings -- -- -- -- --
2. Ronald Mccaslin/vp, Director HSTR General Holdings -- -- -- -- --
3. Charles N. Carney, Jr./VP, Director HSTR General Holdings -- -- -- -- --
4. Richard A. Carver/VP HSTR General Holdings -- -- -- -- --
5. Jackie Holland/VP HSTR General Holdings -- -- -- -- --
6. Craig A. Reynolds/VP, Secretary HSTR General Holdings -- -- -- -- --
7. Kristi E. Gross/Asst Secretary HSTR General Holdings -- -- -- -- --
8. Mary Morton/Asst Secretary HSTR General Holdings -- -- -- -- --
9. Dennis L. Jones/President, Director HSTR Mfg Holdings -- -- -- -- --
10. Ronald Krueger/VP, Treasurer, Director HSTR Mfg Hold -- -- -- -- --
11. Robert Grier/Secretary, Director HSTR Mfg Holdings -- -- -- -- --
12. Beth L. Peoples/Asst Secretary, Asst Treasurer HSTR Mfg Hold -- -- -- -- --
------- -------- ----- ----- ------
TOTAL INSIDERS (MOR-1) -- -- -- -- --
======= ======== ===== ===== ======
<Caption>
MONTH MONTH MONTH MONTH
INSIDERS: NAME/POSITION/COMP TYPE JUNE JULY AUGUST SEPTEMBER
- --------------------------------- ----- ----- ------ ---------
1. Finis F. Teeter/President HSTR General Holdings -- -- -- --
2. Ronald Mccaslin/vp, Director HSTR General Holdings -- -- -- --
3. Charles N. Carney, Jr./VP, Director HSTR General Holdings -- -- -- --
4. Richard A. Carver/VP HSTR General Holdings -- -- -- --
5. Jackie Holland/VP HSTR General Holdings -- -- -- --
6. Craig A. Reynolds/VP, Secretary HSTR General Holdings -- -- -- --
7. Kristi E. Gross/Asst Secretary HSTR General Holdings -- -- -- --
8. Mary Morton/Asst Secretary HSTR General Holdings -- -- -- --
9. Dennis L. Jones/President, Director HSTR Mfg Holdings -- -- -- --
10. Ronald Krueger/VP, Treasurer, Director HSTR Mfg Hold -- -- -- --
11. Robert Grier/Secretary, Director HSTR Mfg Holdings -- -- -- --
12. Beth L. Peoples/Asst Secretary, Asst Treasurer HSTR Mfg Hold -- -- -- --
----- ----- ------ ---------
TOTAL INSIDERS (MOR-1) -- -- -- --
===== ===== ====== =========
</Table>
<Table>
<Caption>
MONTH MONTH MONTH MONTH MONTH MONTH MONTH MONTH MONTH
PROFESSIONALS/NAME/ORDER DATE JANUARY FEBRUARY MARCH APRIL MAY JUNE JULY AUGUST SEPTEMBER
- ----------------------------- ------- -------- ----- ----- ------ ----- ----- ------ ---------
1. Floyd, Isgur, Rios & Warlich -- -- -- -- 1161.2 -- -- -- --
2. Strategic Capital Corporation -- -- -- -- 1986.0 1090 -- 2674 1274
3. -- -- -- -- -- -- -- -- --
4. -- -- -- -- -- -- -- -- --
5. -- -- -- -- -- -- -- -- --
6. -- -- -- -- -- -- -- -- --
TOTAL PROFESSIONALS (MOR-1) -- -- -- -- 3147.2 1090 0 2674 1274
</Table>
MOR-9
UNITED STATES BANKRUPTCY COURT
SOUTHERN DISTRICT OF TEXAS
HOUSTON DIVISION
<Table>
CASE NAME: OAK CREEK HOUSING PROPERTIES, L. P. Petition Date: JANUARY 11, 2001
CASE NUMBER: 01-80035-G3-11
MONTHLY OPERATING REPORT SUMMARY FOR MONTH SEPTEMBER YEAR 2001
--------- ----
MONTH JANUARY FEBRUARY MARCH APRIL MAY
----- -------- -------- ---------- -------- ----------
REVENUES (MOR-6) -- -- -- -- --
INCOME BEFORE INT, DEPREC./TAX (MOR-6) (409,424) (259,642) (2,129,858) (148,640) (6,036,289)
NET INCOME (LOSS) (MOR-6) (477,754) (305,795) (2,198,101) (216,687) (6,056,758)
PAYMENTS TO INSIDERS (MOR-9) 34,667 38,601 42,179 32,861 28,333
PAYMENTS TO PROFESSIONALS (MOR-9) -- -- 4,638 1,510 2,547
TOTAL DISBURSEMENTS (MOR-8) 49,256 168,801 65,780 65,815 12,248
<Caption>
MONTH JUNE JULY AUGUST SEPTEMBER
----- --------- ------- ------ ---------
REVENUES (MOR-6) -- -- -- --
INCOME BEFORE INT, DEPREC./TAX (MOR-6) 1,021,760 79,182 65,114 95,495
NET INCOME (LOSS) (MOR-6) 969,627 (27,366) 52,477 56,000
PAYMENTS TO INSIDERS (MOR-9) 8,333 16,085 8,333 8,333
PAYMENTS TO PROFESSIONALS (MOR-9) 1,510 2,547 306 1,344
TOTAL DISBURSEMENTS (MOR-8) 19,300 3,277 7,636 171,669
</Table>
*** The ORIGINAL of this document MUST BE FILED with the United States
Bankruptcy Court and a COPY MUST BE SENT to the United States Trustee ***
- --------------------------------------------------------------------------------
REQUIRED INSURANCE MAINTAINED
AS OF SIGNATURE DATE
<Table>
<Caption>
EXP.
DATE
----
CASUALTY YES (X) NO ( ) 06/30/02
LIABILITY YES (X) NO ( ) 06/30/02
VEHICLE YES (X) NO ( ) 06/30/02
WORKER'S YES (X) NO ( ) 05/31/02
OTHER - DIRECTOR/OFFICER YES (X) NO ( ) 01/23/02
</Table>
- --------------------------------------------------------------------------------
ATTORNEY NAME:
FIRM: Floyd, Isgur, Rios & Warlich, P. C.
Address: 700 Louisiana, Suite 4600
Address:
City, State, ZIP: Houston, TX 77002-2732
Telephone: 713-222-1470
Fax: 713-222-1475
- --------------------------------------------------------------------------------
<Table>
<Caption>
CIRCLE ONE
Are all accounts receivable being collected within terms? YES NO
Are all posted-petition liabilities, including taxes,
being paid within terms? YES NO
Have any pre-petition liabilities been paid? YES NO
If so, describe. PURSUANT TO COURT ORDER AUTHORIZING
PAYMENTS OF PRE-PETITION WAGES, SALARIES, COMMISSIONS AND
COMPENSATION SIGNED JANUARY 11, 2001.
Are all funds received being deposited into DIP bank accounts? YES NO
Were any assets disposed of outside the normal course of business? YES NO
If so, describe. PROPERTY, PLANT & EQUIPMENT AND OTHER ASSET SALES
MADE PURSUANT TO VARIOUS COURT ORDERS AUTHORIZING SUCH ASSET SALES.
Are all U.S. Trustee Quarterly Fee Payments current? YES NO
What is the status of your Plan of Reorganization? PLAN OF REORGANIZATION
CONFIRMED BY COURT ON AUGUST 14, 2001. EFFECTIVE DATE OF REORGANIZATION -
OCTOBER 3, 2001.
</Table>
I certify under penalty of perjury that
the following complete Monthly Operating
Report (MOR), consisting of MOR-1
through MOR-9 plus attachments, is true
and correct.
SIGNED /s/ CRAIG A. REYNOLDS
--------------------------------
TITLE Vice President of Finance
---------------------------------
MOR - 1
CASE NAME: OAK CREEK HOUSING PROPERTIES, L.P. CASE NUMBER: 01-80035-G3-11
COMPARATIVE BALANCE SHEETS
<Table>
<Caption>
MONTH MONTH MONTH MONTH MONTH
ASSETS FILING DATE* JANUARY FEBRUARY MARCH APRIL MAY
------ ------------ ---------- ---------- ---------- ---------- ----------
CURRENT ASSETS
Cash 123,722 155,188 115,078 3,141,408 3,150,797 3,156,192
Accounts Receivable, Net 668,110 667,785 664,635 653,446 653,446 --
Inventory: Lower of Cost or Market -- -- -- -- -- --
Prepaid Expenses 654,820 654,820 633,007 344,877 203,766 2,961
Investments -- -- -- -- -- --
Other -- -- -- -- -- --
---------- ---------- ---------- ---------- ---------- ----------
TOTAL CURRENT ASSETS 1,446,652 1,477,793 1,412,720 4,139,731 4,008,009 3,159,153
========== ========== ========== ========== ========== ==========
PROPERTY, PLANT&EQUIP, @ COST 19,911,900 19,911,900 19,911,900 14,463,437 14,463,437 14,463,437
Less Accumulated Depreciation 3,061,947 3,130,276 3,198,422 2,531,417 2,599,464 2,619,933
Reserve for Asset Impairment 5,022,459
---------- ---------- ---------- ---------- ---------- ----------
Net Book Value of PP & E 16,849,953 16,781,624 16,713,478 11,932,020 11,863,973 6,821,045
========== ========== ========== ========== ========== ==========
OTHER ASSETS:
1. Tax Deposits -- -- -- -- -- --
2. Investments in Subs (890,565) (890,565) (890,565) (890,565) (890,565) (890,565)
3. Deposits 44,806 44,806 44,806 44,805 44,806 44,806
4. Interests in Insurance Policies 185,231 185,231 185,231 185,231 185,231 185,231
5. Note Receivable 11,821 11,821 11,821 -- -- --
6. Other Assets 1,108,308 1,108,308 1,108,308 1,108,308 1,108,308 --
7. Intercompany 40,320,058 40,320,058 40,320,058 40,320,058 40,320,058 40,320,058
---------- ---------- ---------- ---------- ---------- ----------
TOTAL ASSETS 59,076,263 59,039,075 58,905,855 56,839,588 56,639,818 49,639,728
========== ========== ========== ========== ========== ==========
<Caption>
MONTH MONTH MONTH MONTH
ASSETS JUNE JULY AUGUST SEPTEMBER
------ ---------- ---------- ---------- ----------
CURRENT ASSETS
Cash 3,264,266 3,245,013 3,380,789 3,366,214
Accounts Receivable, Net -- -- -- --
Inventory: Lower of Cost or Market -- -- -- --
Prepaid Expenses -- -- -- --
Investments -- -- -- --
Other -- -- -- --
---------- ---------- ---------- ----------
TOTAL CURRENT ASSETS 3,264,266 3,245,013 3,380,789 3,366,214
========== ========== ========== ==========
PROPERTY, PLANT&EQUIP, @ COST 14,463,437 14,463,437 14,463,437 14,465,049
Less Accumulated Depreciation 2,672,067 2,724,199 2,776,332 2,827,790
Reserve for Asset Impairment 5,022,459 5,022,459 5,022,459
---------- ---------- ---------- ----------
Net Book Value of PP & E 6,768,912 6,716,779 6,664,646 6,614,800
========== ========== ========== ==========
OTHER ASSETS:
1. Tax Deposits -- -- -- --
2. Investments in Subs -- -- -- --
3. Deposits -- -- -- --
4. Interests in Insurance Policies 185,231 185,231 185,231 185,231
5. Note Receivable -- -- -- --
6. Other Assets -- -- -- --
7. Intercompany 40,320,058 40,320,058 40,320,058 40,320,058
---------- ---------- ---------- ----------
TOTAL ASSETS 50,538,466 50,467,080 50,550,724 50,486,303
========== ========== ========== ==========
</Table>
* Per Schedules and Statement of Affairs
MOR-2
CASE NAME: OAK CREEK HOUSING PROPERTIES, L.P. CASE NUMBER: 01-80035-G3-11
COMPARATIVE BALANCE SHEETS
<Table>
<Caption>
LIABILITIES & OWNER'S MONTH MONTH MONTH MONTH MONTH
EQUITY FILING DATE* JANUARY FEBRUARY MARCH APRIL MAY
- --------------------- ------------ ---------- ---------- ---------- ---------- ----------
LIABILITIES:
POST-PETITION LIABILITIES (MOR-4) 645,569 944,825 1,305,318 1,327,170 1,264,123
PRE-PETITION LIABILITIES:
Notes Payable - Secured -- -- -- -- -- --
Priority Debt 316,438 207,920 207,920 260,145 260,145 58,284
Federal Income Tax (222,000) (222,000) (222,000) (222,000) (222,000) --
FICA/withholding -- -- -- -- -- --
Unsecured Debt 1,509,357 1,509,410 1,670,918 1,390,666 1,245,640 344,586
Intercompany 54,840,599 54,744,059 54,455,870 54,455,870 54,595,961 54,595,961
Other -- -- -- -- -- --
---------- ---------- ---------- ---------- ---------- ----------
TOTAL PRE-PETITION LIABILITIES 56,444,394 56,239,390 56,112,709 55,884,681 55,879,745 54,998,831
---------- ---------- ---------- ---------- ---------- ----------
TOTAL LIABILITIES 56,444,394 56,884,959 57,057,534 57,189,999 57,206,915 56,262,954
========== ========== ========== ========== ========== ==========
OWNER'S EQUITY (DEFICIT):
Preferred Stock -- -- -- -- -- --
Common Stock -- -- -- -- -- --
ADDITIONAL PAID-IN CAPITAL -- -- -- -- -- --
PARTNERS CAPITAL 11,981,201 11,981,201 11,981,201 11,981,201 11,981,201 11,981,201
RETAINED EARNINGS: FILING DATE (9,349,332) (9,349,332) (9,349,332) (9,349,332) (9,349,332) (9,349,332)
RETAINED EARNINGS: POST FILING DATE -- (477,754) (783,548) (2,982,279) (3,198,966) (9,255,095)
---------- ---------- ---------- ---------- ---------- ----------
TOTAL OWNER'S EQUITY (NET WORTH) 2,631,869 2,154,116 1,848,321 (350,410) (567,097) (6,623,226)
---------- ---------- ---------- ---------- ---------- ----------
TOTAL LIABILITIES &
OWNER'S EQUITY 59,076,263 59,039,075 58,905,855 56,839,589 56,639,818 49,639,728
========== ========== ========== ========== ========== ==========
<Caption>
LIABILITIES & OWNER'S MONTH MONTH MONTH MONTH
EQUITY JUNE JULY AUGUST SEPTEMBER
- --------------------- ---------- ---------- ---------- ----------
LIABILITIES:
POST-PETITION LIABILITIES (MOR-4) 1,192,333 1,148,313 1,177,424 1,057,003
---------- ---------- ---------- ----------
PRE-PETITION LIABILITIES:
Notes Payable - Secured -- -- -- --
Priority Debt 58,284 58,284 58,284 58,284
Federal Income Tax -- -- -- --
FICA/withholding -- -- -- --
Unsecured Debt 345,486 345,486 347,542 347,542
Intercompany 54,595,961 54,595,961 54,595,961 54,595,961
Other -- -- -- --
---------- ---------- ---------- ----------
TOTAL PRE-PETITION LIABILITIES 54,999,731 54,999,731 55,001,787 55,001,787
---------- ---------- ---------- ----------
TOTAL LIABILITIES 56,192,064 56,148,043 56,179,211 56,058,790
========== ========== ========== ==========
OWNER'S EQUITY (DEFICIT):
Preferred Stock -- -- -- --
Common Stock -- -- -- --
ADDITIONAL PAID-IN CAPITAL -- -- -- --
PARTNERS CAPITAL 11,981,201 11,981,201 11,981,201 11,981,201
RETAINED EARNINGS: FILING DATE (9,349,332) (9,349,332) (9,349,332) (9,349,332)
RETAINED EARNINGS: POST FILING DATE (8,285,467) (8,312,833) (8,312,833) (8,312,833)
---------- ---------- ---------- ----------
TOTAL OWNER'S EQUITY (NET WORTH) (5,653,598) (5,680,964) (5,628,487) (5,572,488)
---------- ---------- ---------- ----------
TOTAL LIABILITIES &
OWNER'S EQUITY 50,538,466 50,467,079 50,550,724 50,486,303
========== ========== ========== ==========
</Table>
* Per Schedules and Statement of Affairs
MOR-3
CASE NAME: OAK CREEK HOUSING PROPERTIES, L.P. CASE NUMBER: 01-80035-G3-11
SCHEDULE OF POST-PETITION LIABILITIES
<Table>
<Caption>
MONTH MONTH MONTH MONTH MONTH
JANUARY FEBRUARY MARCH APRIL MAY
------- -------- --------- --------- ---------
TRADE ACCOUNTS PAYABLE 2,617 4,744 114,552 115,028 133,206
------- ------- --------- --------- ---------
TAX PAYABLE
Federal Payroll Taxes 22,229 24,409 9,909 10,205 10,437
State Payroll & SALES 1,741 2,783 1,604 2,381 2,268
Ad Valorem Taxes -- -- -- -- --
Other Taxes -- -- -- -- --
------- ------- --------- --------- ---------
TOTAL TAXES PAYABLE 23,970 27,192 11,513 12,586 12,706
======= ======= ========= ========= =========
SECURED DEBT POST-PETITION -- -- -- -- --
ACCRUED INTEREST PAYABLE -- -- -- -- --
* ACCRUED PROFESSIONAL FEES -- -- -- 48,000 67,000
OTHER ACCRUED LIABILITIES:
1. Group Insurance 240,248 240,248 240,248 240,248 48,601
2. Management 7,500 -- -- -- --
3. Salaries 61,539 -- -- 23,822 --
4. Legal Fees 21,000 42,000 45,000 -- --
5. Other Insurance -- 16,724 36,341 56,979 78,006
6. Intercompany 288,695 613,918 857,663 830,508 924,604
------- ------- --------- --------- ---------
TOTAL POST-PETITION LIABILITIES (MOR-3) 645,569 944,825 1,305,317 1,327,170 1,264,123
======= ======= ========= ========= =========
<Caption>
MONTH MONTH MONTH MONTH
JUNE JULY AUGUST SEPTEMBER
--------- --------- --------- ---------
TRADE ACCOUNTS PAYABLE 129,004 184,109 191,344 188,116
--------- --------- --------- ---------
TAX PAYABLE
Federal Payroll Taxes 4,210 13,408 26,284 5,364
State Payroll & SALES 34 49 49 49
Ad Valorem Taxes --
Other Taxes -- -- -- --
--------- --------- --------- ---------
TOTAL TAXES PAYABLE 4,244 13,456 26,332 5,412
========= ========= ========= =========
SECURED DEBT POST-PETITION -- -- -- --
ACCRUED INTEREST PAYABLE -- -- -- --
* ACCRUED PROFESSIONAL FEES 84,000 86,000 88,000 90,000
OTHER ACCRUED LIABILITIES:
1. Group Insurance -- -- -- --
2. Management -- -- -- --
3. Salaries -- -- -- --
4. Legal Fees -- -- -- --
5. Other Insurance 99,034 99,034 99,034 99,034
6. Intercompany 876,052 765,714 772,714 674,442
--------- --------- --------- ---------
TOTAL POST-PETITION LIABILITIES (MOR-3) 1,192,333 1,148,313 1,177,424 1,057,003
========= ========= ========= =========
</Table>
* Payment Requires Court Approval.
MOR-4
CASE NAME: OAK CREEK HOUSING PROPERTIES, L.P. CASE NUMBER 01-80035-G3-11
AGING OF POST-PETITION LIABILITIES
MONTH OF SEPTEMBER 2001
<Table>
<Caption>
AD-VALOREM,
DAYS TOTAL TRADE ACCTS FED TAXES STATE TAXES OTHER TAXES OTHER
- ----- --------- ----------- --------- ----------- ----------- -------
0-30 1,057,003 188,116 5,364 49 -- 863,475
31-60 --
61-90 --
91 + --
TOTAL 1,057,003 188,116 5,364 49 -- 863,475
</Table>
AGING OF ACCOUNTS RECEIVABLE
<Table>
<Caption>
MONTH JANUARY FEBRUARY MARCH APRIL MAY
----- ------- -------- ------- ------- ---
0-30 DAYS -- -- -- -- --
31-60 DAYS -- -- -- -- --
61-90 DAYS -- -- -- -- --
91 + DAYS 667,785 664,635 653,446 653,446 --
TOTAL 667,785 664,635 653,446 653,446 --
<Caption>
MONTH JUNE JULY AUGUST SEPTEMBER
----- ---- ---- ------ ---------
0-30 DAYS -- -- -- --
31-60 DAYS -- -- -- --
61-90 DAYS -- -- -- --
91 + DAYS -- -- -- --
TOTAL -- -- -- --
</Table>
MOR-5
CASE NAME: OAK CREEK HOUSING PROPERTIES, L.P. CASE NUMBER: 01-80035-G3-11
STATEMENT OF INCOME (LOSS)
<Table>
<Caption>
MONTH JANUARY FEBRUARY MARCH APRIL MAY
----- -------- -------- ---------- -------- ----------
REVENUES (MOR-1) -- -- -- -- --
TOTAL COST OF REVENUES 218,859 (68,898) (47,411) (76,475) (91,193)
GROSS PROFIT (218,859) 68,898 47,411 76,475 91,193
OPERATING EXPENSES:
Selling & Marketing 41,263 22,048 13,578 -- --
General & Administrative 114,636 (30,532) 98,225 29,468 32,126
Insiders Compensation 34,667 38,601 34,486 35,721 --
Professional Fees -- -- 25,617 3,750 --
Impairment of Assets 298,424 1,563,213 156,176 6,095,356 (829,074)
Other (attach list) -- -- 442,150 -- --
-------- --------- ---------- --------- ----------
TOTAL OPERATING EXPENSES 190,565 328,540 2,177,269 225,115 6,127,482
======== ========= ========== ========= ==========
INCOME BEFORE INT, DEPR/TAX (MOR-1) (409,424) (259,642) (2,129,858) (148,640) (6,036,289)
======== ========= ========== ========= ==========
INTEREST EXPENSE -- -- -- -- --
DEPRECIATION 68,329 68,146 68,243 68,047 20,469
OTHER (INCOME) EXPENSE * -- (21,993) -- -- --
OTHER ITEMS ** -- -- -- -- --
-------- --------- ---------- --------- ----------
TOTAL INT, DEPR & OTHER ITEMS 68,329 46,153 68,243 68,047 20,469
-------- --------- ---------- --------- ----------
NET INCOME BEFORE TAXES (477,754) (305,795) (2,198,101) (216,687) (6,056,758)
======== ========= ========== ========= ==========
FEDERAL INCOME TAXES -- -- -- -- --
-------- --------- ---------- --------- ----------
NET INCOME (LOSS) (MOR-1) (477,754) (305,795) (2,198,101) (216,687) (6,056,758)
======== ========= ========== ========= ==========
<Caption>
MONTH JUNE JULY AUGUST SEPTEMBER FILING TO DATE
----- --------- --------- ------- --------- --------------
REVENUES (MOR-1) -- -- -- -- --
TOTAL COST OF REVENUES (173,600) (90,533) (42,128) (80,644) (601,984)
GROSS PROFIT 173,600 90,533 42,128 80,644 601,984
OPERATING EXPENSES:
Selling & Marketing -- -- -- -- 13,578
General & Administrative (24,035) (5,734) (32,319) (26,127) 71,605
Insiders Compensation -- 16,085 8,333 8,333 102,958
Professional Fees 4,948 1,000 1,000 1,000 37,315
Impairment of Assets 1,943 6,987,613
Other (attach list) -- -- -- -- 442,150
--------- --------- ------- ------- ----------
TOTAL OPERATING EXPENSES (848,160) 11,351 (22,986) (14,851) 7,655,219
========= ========= ======= ======= ==========
INCOME BEFORE INT, DEPR/TAX (MOR-1) 1,021,760 79,182 65,114 95,495 (7,053,235)
========= ========= ======= ======= ==========
INTEREST EXPENSE -- -- -- -- --
DEPRECIATION 52,133 52,132 12,637 39,495 313,156
OTHER (INCOME) EXPENSE * 54,416 -- -- 54,416
OTHER ITEMS ** -- -- -- --
--------- --------- ------- ------- ----------
TOTAL INT, DEPR & OTHER ITEMS 52,133 106,548 12,637 39,495 367,572
--------- --------- ------- ------- ----------
NET INCOME BEFORE TAXES 969,627 (27,366) 52,477 56,000 (7,420,808)
========= ========= ======= ======= ==========
FEDERAL INCOME TAXES -- -- -- -- --
--------- --------- ------- ------- ----------
NET INCOME (LOSS) (MOR-1) 969,627 (27,366) 52,477 56,000 (7,420,808)
========= ========= ======= ======= ==========
</Table>
Accrual Accounting Required, Otherwise Footnote With Explanation
* Footnote Mandatory
** Unusual and/or infrequent item(s) outside the ordinary course of business;
requires footnote
MOR-6
CASE NAME: OAK CREEK HOUSING PROPERTIES, L.P. CASE NUMBER: 01-80035-G3-11
<Table>
<Caption>
MONTH MONTH MONTH MONTH MONTH
CASH RECEIPTS AND DISBURSEMENTS JANUARY FEBRUARY MARCH APRIL MAY
- ------------------------------- ------- --------- --------- --------- ---------
1. CASH - BEGINNING OF MONTH 123,722 155,188 115,078 3,141,408 3,150,797
RECEIPTS:
2. CASH SALES -- -- -- -- --
3. COLLECTION OF ACCOUNTS RECEIVABLE 40,512 29,146 234 -- --
4. LOANS & ADVANCES (ATTACH LIST) -- -- -- -- --
5. SALE OF ASSETS -- 3,128,896 -- --
6. INTERCOMPANY 40,210 99,544 -- 67,475 11,538
7. OTHER (ATTACH LIST) -- -- 7,727 6,104
------- --------- --------- --------- ---------
TOTAL RECEIPTS 80,722 128,690 3,129,130 75,202 17,642
======= ========= ========= ========= =========
(WITHDRAWAL) CONTRIBUTION BY INDIVIDUAL DEBTOR MFR-2*
DISBURSEMENTS:
8. NET PAYROLL 8,412 34,738 -- -- --
9. PAYROLL TAXES PAID -- -- 1,347 3,899 --
10. SALES, USE & OTHER TAXES PAID -- 4,513 -- -- --
11. SECURED / RENTAL / LEASES -- 817 20,865 7,161 --
12. UTILITIES -- -- 16,004 3,656 4,340
13. INSURANCE 34,247 100,184 10,521 -- --
14. INVENTORY PURCHASES -- -- -- -- --
15. VEHICLE EXPENSES -- -- -- -- --
16. TRAVEL ENTERTAINMENT 3,227 8,278 3,611 2,989 --
17. REPAIRS, MAINTENANCE & SUPPLIES -- 874 7,647 350 --
18. ADMINISTRATIVE & SELLING 3,371 19,398 5,784 35,354 3,020
19. INTERCOMPANY -- -- 37,019 8,656 --
------- --------- --------- --------- ---------
TOTAL DISBURSEMENTS FROM OPERATIONS 49,256 168,801 102,799 62,064 7,360
======= ========= ========= ========= =========
20. PROFESSIONAL FEES -- -- -- -- 4,638
21. U.S. TRUSTEE FEES -- -- -- 3,750 250
22. OTHER REORGANIZATION EXPENSES (ATTACH LIST) -- -- -- -- 12,487
------- --------- --------- --------- ---------
TOTAL DISBURSEMENTS 49,256 168,801 102,799 65,814 12,248
======= ========= ========= ========= =========
23. NET CASH FLOW 31,466 (40,111) 3,026,331 9,388 5,394
------- --------- --------- --------- ---------
24. CASH - END OF MONTH (MOR-2) 155,188 115,078 3,141,408 3,150,797 3,156,191
======= ========= ========= ========= =========
<Caption>
MONTH MONTH MONTH MONTH FILING TO
CASH RECEIPTS AND DISBURSEMENTS JUNE JULY AUGUST SEPTEMBER DATE
- ------------------------------- --------- --------- --------- ---------- ---------
1. CASH - BEGINNING OF MONTH 3,156,191 3,264,266 3,245,012 3,380,789 115,078
RECEIPTS:
2. CASH SALES -- -- -- --
3. COLLECTION OF ACCOUNTS RECEIVABLE 140,296 155,441 160,389 157,093 613,454
4. LOANS & ADVANCES (ATTACH LIST) -- -- -- --
5. SALE OF ASSETS -- -- -- -- 3,128,896
6. INTERCOMPANY -- -- -- -- 79,013
7. OTHER (ATTACH LIST) -- -- -- -- 13,832
--------- --------- --------- --------- ---------
TOTAL RECEIPTS 140,296 155,441 160,389 157,093 3,835,194
========= ========= ========= ========= =========
(WITHDRAWAL) CONTRIBUTION BY INDIVIDUAL DEBTOR MFR-2*
DISBURSEMENTS:
8. NET PAYROLL 21,902 21,902
9. PAYROLL TAXES PAID 34 32,723 38,002
10. SALES, USE & OTHER TAXES PAID 127 127
11. SECURED / RENTAL / LEASES -- -- -- 1,613 29,638
12. UTILITIES -- 15,812 2,054 11,093 52,960
13. INSURANCE 2,912 1,969 3,579 2,995 21,977
14. INVENTORY PURCHASES -- 75 50 -- 125
15. VEHICLE EXPENSES -- -- -- -- --
16. TRAVEL ENTERTAINMENT -- -- 1,554 -- 8,154
17. REPAIRS, MAINTENANCE & SUPPLIES -- -- -- -- 7,997
18. ADMINISTRATIVE & SELLING 2,265 1,186 60 -- 47,669
19. INTERCOMPANY 12,920 153,105 16,976 100,000 328,676
--------- --------- --------- --------- ---------
TOTAL DISBURSEMENTS FROM OPERATIONS 18,224 172,148 24,306 170,325 557,226
========= ========= ========= ========= =========
20. PROFESSIONAL FEES 1,510 306 -- 6,454
21. U.S. TRUSTEE FEES 4,000
22. OTHER REORGANIZATION EXPENSES (ATTACH LIST) 2,547 -- 1,344 16,378
--------- --------- --------- --------- ---------
TOTAL DISBURSEMENTS 32,220 174,694 24,612 171,669 584,057
========= ========= ========= ========= =========
23. NET CASH FLOW 108,076 (19,253) 135,777 (14,576) 3,251,137
--------- --------- --------- --------- ---------
24. CASH - END OF MONTH (MOR-2) 3,264,266 3,245,012 3,380,789 3,366,214 3,366,214
========= ========= ========= ========= =========
</Table>
* applies to Individual debtor's only.
MOR-7
CASE NAME: OAK CREEK HOUSING PROPERTIES, L.P. CASE NUMBER: 01-80035-G3-11
CASH ACCOUNT RECONCILIATION
MONTH OF SEPTEMBER 2001
<Table>
<Caption>
BANK NAME Bank of America Bank of America Bank One Petty Cash
- --------- --------------- --------------- ------------ ----------
ACCOUNT NUMBER # 3755500166 # 1826020966
ACCOUNT TYPE OPERATING INVESTMENT PAYROLL OTHER FUNDS TOTAL
- ------------ --------- ---------- ------- ----------- ---------
BANK BALANCE 343,067 3,128,896 (5,750) -- 3,466,214
DEPOSIT IN TRANSIT -- -- -- -- --
OUTSTANDING CHECKS -- -- -- -- --
-------- --------- ------ ----- ---------
ADJUSTED BANK BALANCE 100,947 3,128,896 (5,750) -- 3,466,214
======== ========= ====== ===== =========
BEGINNING CASH - PER BOOKS 250,072 3,128,896 1,821 -- 3,380,789
RECEIPTS 157,093 -- -- -- 157,093
TRANSFERS BETWEEN ACCOUNTS (100,000) -- -- -- (100,000)
(WITHDRAWAL) CONTRIBUTION - BY INDIVIDUAL DEBTOR MFR-2 -- -- -- -- --
CHECKS / OTHER DISBURSEMENTS (64,098) -- (7,571) -- (71,669)
-------- --------- ------ ----- ---------
ENDING CASH - PER BOOKS 243,067 3,128,896 (5,750) -- 3,366,214
======== ========= ====== ===== =========
</Table>
MOR-8
CASE NAME: OAK CREEK HOUSING PROPERTIES, L.P. CASE NUMBER: 01-80035-G3-11
PAYMENTS TO INSIDERS AND PROFESSIONALS
OF THE TOTAL DISBURSEMENTS SHOWN FOR THE MONTH, LIST THE AMOUNT PAID TO INSIDERS
(AS DEFINED IN SECTION 101(30)(A)-(F) OF THE U. S. BANKRUPTCY CODE) AND THE
PROFESSIONALS. ALSO, FOR INSIDERS IDENTIFY THE TYPE OF COMPENSATION PAID (E.G.,
SALARY, COMMISSION, BONUS, ETC.) (ATTACH ADDITIONAL PAGES AS NECESSARY).
<Table>
<Caption>
INSIDERS: NAME/POSITION/COMP TYPE MONTH MONTH MONTH MONTH MONTH
- ---------------------------------- JANUARY FEBRUARY MARCH APRIL MAY
------- -------- ------ ------ ------
1. Finis F. Teeter/President HSTR General Holdings -- -- -- -- --
2. Ronald Mccaslin/VP, Director HSTR Gen Hold/Salary 20,000 23,934 28,356 21,210 20,000
3. Charles N. Carney, Jr./VP, Director HSTR General Holdings -- -- -- -- --
4. Richard A. Carver/VP HSTR General Holdings -- -- -- -- --
5. Jackie Holland/VP HSTR General Holdings/Salary 9,167 9,167 9,167 11,481 8,333
6. Craig A. Reynolds/VP, Secretary HSTR General Holdings -- -- -- -- --
7. Kristi E. Gross/Asst Secretary HSTR Gen Hold/Salary 5,500 6,058 4,656 170 --
8. Mary Morton/Asst Secretary Hstr General Holdings -- -- -- -- --
9. Dennis L. Jones/President, Director HSTR Retail Holdings -- -- -- -- --
10. Ronald Krueger/VP, Treasurer, Director HSTR Retail Hold -- -- -- -- --
11. Robert Grier/Secretary, Director HSTR Retail Hold -- -- -- -- --
12. Beth L. Peoples/Asst Secretary, Asst Treasurer HSTR Ret Hold -- -- -- -- --
------ ------ ------ ------ ------
TOTAL INSIDERS (MOR-1) 34,667 39,159 42,179 32,861 28,333
====== ====== ====== ====== ======
<Caption>
MONTH MONTH MONTH MONTH
INSIDERS: NAME/POSITION/COMP TYPE JUNE JULY AUGUST SEPTEMBER
- ---------------------------------- ----- ------ ------- ----------
1. Finis F. Teeter/President HSTR General Holdings -- -- -- --
2. Ronald Mccaslin/VP, Director HSTR Gen Hold/Salary -- -- -- --
3. Charles N. Carney, Jr./VP, Director HSTR General Holdings -- -- -- --
4. Richard A. Carver/VP HSTR General Holdings -- -- -- --
5. Jackie Holland/VP HSTR General Holdings/Salary 8,333 16,085 8,333 8,333
6. Craig A. Reynolds/VP, Secretary HSTR General Holdings -- -- -- --
7. Kristi E. Gross/Asst Secretary HSTR Gen Hold/Salary -- -- -- --
8. Mary Morton/Asst Secretary HSTR General Holdings -- -- -- --
9. Dennis L. Jones/President, Director HSTR Retail Holdings -- -- -- --
10. Ronald Krueger/VP, Treasurer, Director HSTR Retail Hold -- -- -- --
11. Robert Grier/Secretary, Director HSTR Retail Hold -- -- -- --
12. Beth L. Peoples/Asst Secretary, Asst Treasurer HSTR Ret Hold -- -- -- --
----- ------ ----- -----
TOTAL INSIDERS (MOR-1) 8,333 16,085 8,333 8,333
===== ====== ===== =====
</Table>
<Table>
<Caption>
MONTH MONTH MONTH MONTH MONTH
PROFESSIONALS/NAME/ORDER DATE JANUARY FEBRUARY MARCH APRIL MAY
- ----------------------------- ------- -------- ----- ----- ------
1. Floyd, Isgur, Rios and Warlich -- -- -- -- 1,568
2. Strategic Capital Corporation -- -- -- -- 3,070
3. -- -- -- -- --
4. -- -- -- -- --
5. -- -- -- -- --
6. -- -- -- -- --
TOTAL PROFESSIONALS (MOR-1) -- -- -- -- 4,638
===== ===== ===== ===== =====
<Caption>
MONTH MONTH MONTH MONTH
PROFESSIONALS/NAME/ORDER DATE JUNE JULY AUGUST SEPTEMBER
- ----------------------------- ----- ----- ------ ---------
1. Floyd, Isgur, Rios and Warlich 218 -- 306 --
2. Strategic Capital Corporation 1,292 2,547 -- 1,344
3. -- -- -- --
4. -- -- -- --
5. -- -- -- --
6. -- -- -- --
TOTAL PROFESSIONALS (MOR-1) 1,510 2,547 306 1,344
===== ===== === =====
</Table>
MOR-9
UNITED STATES BANKRUPTCY COURT
SOUTHERN DISTRICT OF TEXAS
HOUSTON DIVISION
<Table>
CASE NAME: ASSOCIATED RETAILERS GROUP, INC. PETITION DATE: JANUARY 11, 2001
CASE NUMBER: 01-80024-G3-11
MONTHLY OPERATING REPORT SUMMARY FOR MONTH SEPTEMBER YEAR 2001
--------- ----
MONTH JANUARY FEBRUARY MARCH APRIL MAY
----- -------- -------- -------- -------- --------
REVENUES (MOR-6) -- -- -- -- --
INCOME BEFORE INT, DEPREC./TAX (MOR-6) -- 602,866 -- -- --
NET INCOME (LOSS) (MOR-6) -- 602,866 -- -- --
PAYMENTS TO INSIDERS (MOR-9) -- -- -- -- --
PAYMENTS TO PROFESSIONALS (MOR-9) -- -- -- -- --
TOTAL DISBURSEMENTS (MOR-8) -- 10,136 -- -- 42,040
<Caption>
MONTH JUNE JULY AUGUST SEPTEMBER
----- -------- -------- -------- ---------
REVENUES (MOR-6) -- -- -- --
INCOME BEFORE INT, DEPREC./TAX (MOR-6) -- -- -- --
NET INCOME (LOSS) (MOR-6) -- -- -- --
PAYMENTS TO INSIDERS (MOR-9) -- -- -- --
PAYMENTS TO PROFESSIONALS (MOR-9) -- -- -- --
TOTAL DISBURSEMENTS (MOR-8) -- -- -- --
</Table>
*** The ORIGINAL of this document MUST BE FILED with the United States
Bankruptcy Court and a COPY MUST BE SENT to the United States Trustee ***
- --------------------------------------------------------------------------------
REQUIRED INSURANCE MAINTAINED
AS OF SIGNATURE DATE
<Table>
<Caption>
EXP.
DATE
----
CASUALTY YES (X) NO ( ) 06/30/02
LIABILITY YES (X) NO ( ) 06/30/02
VEHICLE YES (X) NO ( ) 06/30/02
WORKER'S YES (X) NO ( ) 03/27/02
OTHER - DIRECTOR/OFFICER YES (X) NO ( ) 01/23/02
</Table>
- --------------------------------------------------------------------------------
ATTORNEY NAME:
FIRM: Floyd, Isgur, Rios & Warlich, P. C.
Address: 700 Louisiana, Suite 4600
Address:
City, State, ZIP: Houston, TX 77002-2732
Telephone: 713-222-1470
Fax: 713-222-1475
- --------------------------------------------------------------------------------
<Table>
<Caption>
CIRCLE ONE
Are all accounts receivable being collected within terms? YES NO
Are all posted-petition liabilities, including taxes,
being paid within terms? YES NO
Have any pre-petition liabilities been paid? YES NO
If so, describe. PURSUANT TO COURT ORDER AUTHORIZING
PAYMENTS OF PRE-PETITION WAGES, SALARIES, COMMISSIONS AND
COMPENSATION SIGNED JANUARY 11, 2001.
Are all funds received being deposited into DIP bank accounts? YES NO
Were any assets disposed of outside the normal course of business? YES NO
If so, describe.
--------------------------------------------------
- -------------------------------------------------------------------.
Are all U.S. Trustee Quarterly Fee Payments current? YES NO
What is the status of your Plan of Reorganization? PLAN OF REORGANIZATION
CONFIRMED BY COURT ON AUGUST 14, 2001. EFFECTIVE DATE OF REORGANIZATION -
OCTOBER 3, 2001.
</Table>
I certify under penalty of perjury that the
following complete Monthly Operating Report
(MOR), consisting of MOR-1 through MOR-9
plus attachments, is true and correct.
SIGNED /s/ CRAIG A. REYNOLDS
-------------------------------------
TITLE Vice President of Finance
-------------------------------------
MOR-1
CASE NAME: PACIFIC NORTHWEST HOMES, INC. CASE NUMBER: 01-80036-G3-11
COMPARATIVE BALANCE SHEETS
<Table>
<Caption>
MONTH MONTH MONTH MONTH MONTH
ASSETS FILING DATE* JANUARY FEBRUARY MARCH APRIL MAY
------ ------------ --------- --------- --------- --------- ---------
CURRENT ASSETS
Cash -- -- -- -- --
Accounts Receivable, Net -- -- -- -- --
Inventory: Lower of Cost or Market -- -- -- -- --
Prepaid Expenses -- -- -- -- --
Investments 37,964 52,177 42,040 42,040 42,040 --
Other -- --
--------- --------- --------- --------- --------- ---------
TOTAL CURRENT ASSETS 37,964 52,177 42,040 42,040 42,040 --
========= ========= ========= ========= ========= =========
PROPERTY, PLANT & EQUIP, @ COST -- -- -- -- -- --
Less Accumulated Depreciation -- -- -- -- -- --
--------- --------- --------- --------- --------- ---------
Net Book Value of PP & E -- -- -- -- -- --
========= ========= ========= ========= ========= =========
OTHER ASSETS:
1. Tax Deposits -- -- -- -- -- --
2. Investments in Subs -- -- -- -- -- --
3. Deposits -- -- -- -- -- --
4. Interests in Insurance Policies -- -- -- -- -- --
5. Note Receivable -- -- -- -- -- --
6. Deferred Comp. Plan Assets -- -- --
7. Intercompany 27,734
8. Other Assets (43,308) (43,308) (43,308) (43,308) (43,308) (43,308)
--------- --------- --------- --------- --------- ---------
TOTAL ASSETS (5,344) 8,869 (1,268) (1,268) (1,268) (15,574)
========= ========= ========= ========= ========= =========
<Caption>
MONTH MONTH MONTH MONTH
ASSETS JUNE JULY AUGUST SEPTEMBER
------ --------- --------- --------- ---------
CURRENT ASSETS
Cash -- -- -- --
Accounts Receivable, Net -- -- -- --
Inventory: Lower of Cost or Market -- -- -- --
Prepaid Expenses -- -- -- --
Investments -- -- -- --
Other -- -- -- --
--------- --------- --------- ---------
TOTAL CURRENT ASSETS -- -- -- --
========= ========= ========= =========
PROPERTY, PLANT & EQUIP, @ COST -- -- -- --
Less Accumulated Depreciation -- -- -- --
--------- --------- --------- ---------
Net Book Value of PP & E -- -- -- --
========= ========= ========= =========
OTHER ASSETS:
1. Tax Deposits -- -- -- --
2. Investments in Subs -- -- -- --
3. Deposits -- -- -- --
4. Interests in Insurance Policies -- -- -- --
5. Note Receivable -- -- -- --
6. Deferred Comp. Plan Assets -- -- -- --
7. Intercompany 27,734 27,734 27,734 27,734
8. Other Assets (43,308) (43,308) (43,308) (43,308)
--------- --------- --------- ---------
TOTAL ASSETS (15,574) (15,574) (15,574) (15,574)
========= ========= ========= =========
</Table>
* Per Schedules and Statement of Affairs
MOR-2
CASE NAME: PACIFIC NORTHWEST HOMES, INC. CASE NUMBER: 01-80036-G3-11
COMPARATIVE BALANCE SHEETS
<Table>
<Caption>
LIABILITIES & OWNER'S MONTH MONTH MONTH MONTH MONTH
EQUITY FILING DATE* JANUARY FEBRUARY MARCH APRIL MAY
- --------------------- ----------- ---------- ---------- ---------- ---------- ----------
LIABILITIES:
POST-PETITION LIABILITIES (MOR-4) -- -- -- -- --
---------- ---------- ---------- ---------- ----------
PRE-PETITION LIABILITIES:
Notes Payable - Secured -- -- -- -- -- --
Priority Debt -- -- -- -- -- --
Federal Income Tax -- -- -- -- -- --
FICA/Withholding -- -- -- -- -- --
Unsecured Debt -- -- -- -- -- --
Intercompany 1,307,136 1,321,349 708,347 708,347 708,347 708,347
Other -- -- -- -- -- --
---------- ---------- ---------- ---------- ---------- ----------
TOTAL PRE-PETITION LIABILITIES 1,307,136 1,321,349 708,347 708,347 708,347 708,347
---------- ---------- ---------- ---------- ---------- ----------
TOTAL LIABILITIES 1,307,136 1,321,349 708,347 708,347 708,347 708,347
========= ========= ========= ========= ========= =========
OWNER'S EQUITY (DEFICIT):
Preferred Stock -- --
Common Stock 1,000 1,000 1,000 1,000 1,000 1,000
ADDITIONAL PAID-IN CAPITAL (70,641) (70,641) (70,641) (70,641) (70,641) (70,641)
RETAINED EARNINGS: Filing Date (1,242,840) (1,242,840) (1,242,840) (1,242,840) (1,242,840) (1,242,840)
RETAINED EARNINGS: Post Filing Date -- -- 602,866 602,866 602,866 588,560
---------- ---------- ---------- ---------- ---------- ----------
TOTAL OWNER'S EQUITY (NET WORTH) (1,312,481) (1,312,481) (709,615) (709,615) (709,615) (723,921)
---------- ---------- ---------- ---------- ---------- ----------
TOTAL LIABILITIES &
OWNER'S EQUITY (5,344) 8,869 (1,268) (1,268) (1,268) (15,574)
========== ========== ========== ========== ========== ==========
<Caption>
LIABILITIES & OWNER'S MONTH MONTH MONTH MONTH
EQUITY JUNE JULY AUGUST SEPTEMBER
- --------------------- ---------- ---------- ---------- ----------
LIABILITIES:
POST-PETITION LIABILITIES (MOR-4) -- -- -- --
---------- ---------- ---------- ----------
PRE-PETITION LIABILITIES:
Notes Payable - Secured -- -- -- --
Priority Debt -- -- -- --
Federal Income Tax -- -- -- --
FICA/Withholding -- -- -- --
Unsecured Debt -- -- -- --
Intercompany 708,347 708,347 708,347 708,347
Other -- -- -- --
---------- ---------- ---------- ----------
TOTAL PRE-PETITION LIABILITIES 708,347 708,347 708,347 708,347
---------- ---------- ---------- ----------
TOTAL LIABILITIES 708,347 708,347 708,347 708,347
========== ========== ========= ==========
OWNER'S EQUITY (DEFICIT):
Preferred Stock
Common Stock 1,000 1,000 1,000 1,000
ADDITIONAL PAID-IN CAPITAL (70,641) (70,641) (70,641) (70,641)
RETAINED EARNINGS: Filing Date (1,242,840) (1,242,840) (1,242,840) (1,242,840)
RETAINED EARNINGS: Post Filing Date 588,560 588,560 588,560 588,560
---------- ---------- ---------- ----------
TOTAL OWNER'S EQUITY (NET WORTH) (723,921) (723,921) (723,921) (723,921)
---------- ---------- ---------- ----------
TOTAL LIABILITIES &
OWNER'S EQUITY (15,574) (15,574) (15,574) (15,574)
========== ========== ========== ==========
</Table>
* Per Schedules and Statement of Affairs
MOR-3
CASE NAME: PACIFIC NORTHWEST HOMES, INC. CASE NUMBER: 01-80036-G3-11
SCHEDULE OF POST-PETITION LIABILITIES
<Table>
<Caption>
MONTH MONTH MONTH MONTH MONTH
JANUARY FEBRUARY MARCH APRIL MAY
---------- ---------- ---------- ---------- ----------
TRADE ACCOUNTS PAYABLE -- -- -- -- --
---------- ---------- ---------- ---------- ----------
TAX PAYABLE -- -- -- -- --
Federal Payroll Taxes -- -- -- -- --
State Payroll & Sales -- -- -- -- --
Ad Valorem Taxes -- -- -- -- --
Other Taxes -- -- -- -- --
---------- ---------- ---------- ---------- ----------
TOTAL TAXES PAYABLE -- -- -- -- --
========== ========== ========== ========== ==========
SECURED DEBT POST-PETITION -- -- -- -- --
ACCRUED INTEREST PAYABLE -- -- -- -- --
* ACCRUED PROFESSIONAL FEES -- -- -- -- --
OTHER ACCRUED LIABILITIES: -- -- -- -- --
1. -- -- -- -- --
2. -- -- -- -- --
3. -- -- -- -- --
---------- ---------- ---------- ---------- ----------
TOTAL POST-PETITION LIABILITIES (MOR-3) -- -- -- -- --
========== ========== ========== ========== ==========
<Caption>
MONTH MONTH MONTH MONTH
JUNE JULY AUGUST SEPTEMBER
---------- ---------- ---------- ----------
TRADE ACCOUNTS PAYABLE -- -- -- --
---------- ---------- ---------- ----------
TAX PAYABLE -- -- -- --
Federal Payroll Taxes -- -- -- --
State Payroll & Sales -- -- -- --
Ad Valorem Taxes -- -- -- --
Other Taxes -- -- -- --
---------- ---------- ---------- ----------
TOTAL TAXES PAYABLE -- -- -- --
========== ========== ========== ==========
SECURED DEBT POST-PETITION -- -- -- --
ACCRUED INTEREST PAYABLE -- -- -- --
* ACCRUED PROFESSIONAL FEES -- -- -- --
OTHER ACCRUED LIABILITIES: -- -- -- --
1. -- -- -- --
2. -- -- -- --
3. -- -- -- --
---------- ---------- ---------- ----------
TOTAL POST-PETITION LIABILITIES (MOR-3) -- -- -- --
========== ========== ========== ==========
</Table>
* Payment Requires Court Approval.
MOR-4
CASE NAME: PACIFIC NORTHWEST HOMES, INC. CASE NUMBER: 01-80036-G3-11
AGING OF POST-PETITION LIABILITIES
MONTH OF SEPTEMBER 2001
<Table>
<Caption>
AD-VALOREM,
DAYS TOTAL TRADE ACCTS FED TAXES STATE TAXES OTHER TAXES OTHER
---- ----------- ----------- ----------- ----------- ----------- -----------
0-30 --
31-60 --
61-90 --
91 + --
TOTAL --
</Table>
AGING OF ACCOUNTS RECEIVABLE
<Table>
<Caption>
MONTH JANUARY FEBRUARY MARCH APRIL MAY
----- -------- -------- -------- -------- --------
0-30 DAYS -- -- -- -- --
31-60 DAYS -- -- -- -- --
61-90 DAYS -- -- -- -- --
91 + DAYS -- -- -- -- --
TOTAL -- -- -- -- --
<Caption>
MONTH JUNE JULY AUGUST SEPTEMBER
----- -------- -------- -------- ---------
0-30 DAYS -- -- -- --
31-60 DAYS -- -- -- --
61-90 DAYS -- -- -- --
91 + DAYS -- -- -- --
TOTAL -- -- -- --
</Table>
MOR-5
CASE NAME: PACIFIC NORTHWEST HOMES, INC. CASE NUMBER: 01-80036-G3-11
STATEMENT OF INCOME (LOSS)
<Table>
<Caption>
MONTH JANUARY FEBRUARY MARCH APRIL MAY
----- ---------- ---------- ---------- ---------- ----------
REVENUES (MOR-1) -- -- -- -- --
TOTAL COST OF REVENUES -- -- -- -- --
GROSS PROFIT -- -- -- -- --
OPERATING EXPENSES:
Selling & Marketing -- -- -- -- --
General & Administrative -- -- -- -- --
Insiders Compensation -- -- -- -- --
Professional Fees -- -- -- -- --
Correction of Liabilities (602,866) -- -- (14,306)
Other (attach list) -- -- -- -- --
---------- ---------- ---------- ---------- ----------
TOTAL OPERATING EXPENSES -- (602,866) -- -- (14,306)
========== ========== ========== ========== ==========
INCOME BEFORE INT, DEPR/TAX (MOR-1) -- 602,866 -- -- 14,306
========== ========== ========== ========== ==========
INTEREST EXPENSE -- -- -- -- --
DEPRECIATION -- -- -- -- --
OTHER (INCOME) EXPENSE * -- -- -- -- --
OTHER ITEMS ** -- -- -- -- --
---------- ---------- ---------- ---------- ----------
TOTAL INT, DEPR & OTHER ITEMS -- -- -- -- --
---------- ---------- ---------- ---------- ----------
NET INCOME BEFORE TAXES -- 602,866 -- -- 14,306
========== ========== ========== ========== ==========
FEDERAL INCOME TAXES -- --
---------- ---------- ---------- ---------- ----------
NET INCOME (LOSS) (MOR-1) -- 602,866 -- -- 14,306
========== ========== ========== ========== ==========
<Caption>
MONTH JUNE JULY AUGUST SEPTEMBER FILING TO DATE
----- ---------- ---------- ---------- ---------- --------------
REVENUES (MOR-1) -- -- -- -- --
TOTAL COST OF REVENUES -- -- -- -- --
GROSS PROFIT -- -- -- -- --
OPERATING EXPENSES:
Selling & Marketing -- -- -- -- --
General & Administrative -- -- -- -- --
Insiders Compensation -- -- -- -- --
Professional Fees -- -- -- -- --
Correction of Liabilities -- -- -- -- --
Other (attach list) -- -- -- -- --
---------- ---------- ---------- ---------- ----------
TOTAL OPERATING EXPENSES -- -- -- -- --
========== ========== ========== ========== ==========
INCOME BEFORE INT, DEPR/TAX (MOR-1) -- -- -- -- --
========== ========== ========== ========== ==========
INTEREST EXPENSE -- -- -- -- --
DEPRECIATION -- -- -- -- --
OTHER (INCOME) EXPENSE * -- -- -- -- --
OTHER ITEMS ** -- -- -- -- --
---------- ---------- ---------- ---------- ----------
TOTAL INT, DEPR & OTHER ITEMS -- -- -- -- --
---------- ---------- ---------- ---------- ----------
NET INCOME BEFORE TAXES -- -- -- -- --
========== ========== ========== ========== ==========
FEDERAL INCOME TAXES
---------- ---------- ---------- ---------- ----------
NET INCOME (LOSS) (MOR-1) -- -- -- -- --
========== ========== ========== ========== ==========
</Table>
Accrual Accounting Required, Otherwise Footnote With Explanation
* Footnote Mandatory
** Unusual and/or Infrequent Item(s) Outside The Ordinary Course of Business;
Requires Footnote
MOR-6
CASE NAME: PACIFIC NORTHWEST HOMES, INC. CASE NUMBER: 01-80036-G3-11
<Table>
<Caption>
MONTH MONTH MONTH MONTH MONTH
CASH RECEIPTS AND DISBURSEMENTS JANUARY FEBRUARY MARCH APRIL MAY
- ------------------------------- ---------- ---------- ---------- ---------- ----------
1. CASH - BEGINNING OF MONTH 37,964 52,177 42,040 42,040 42,040
RECEIPTS:
2. CASH SALES -- -- -- -- --
3. COLLECTION OF ACCOUNTS RECEIVABLE -- -- -- -- --
4. LOANS & ADVANCES (ATTACH LIST) -- -- -- -- --
5. SALE OF ASSETS -- -- -- -- --
6. OTHER - INVESTMENT INCOME 14,213 (10,136) -- -- --
---------- ---------- ---------- ---------- ----------
TOTAL RECEIPTS 14,213 (10,136) -- -- --
========== ========== ========== ========== ==========
(Withdrawal) Contribution by Individual Debtor MFR-2*
DISBURSEMENTS:
7. NET PAYROLL -- -- -- -- --
8. PAYROLL TAXES PAID -- -- -- -- --
9. SALES, USE & OTHER TAXES PAID -- -- -- -- --
10. SECURED / RENTAL / LEASES -- -- -- -- --
11. UTILITIES -- -- -- -- --
12. INSURANCE -- -- -- -- --
13. INVENTORY PURCHASES -- -- -- -- --
14. VEHICLE EXPENSES -- -- -- -- --
15. TRAVEL ENTERTAINMENT -- -- -- -- --
16. REPAIRS, MAINTENANCE & SUPPLIES -- -- -- -- --
17. ADMINISTRATIVE & SELLING -- -- -- -- 42,040
18. OTHER (ATTACH LIST) -- -- -- -- --
---------- ---------- ---------- ---------- ----------
TOTAL DISBURSEMENTS FROM OPERATIONS -- -- -- -- 42,040
========== ========== ========== ========== ==========
19. PROFESSIONAL FEES -- -- -- -- --
20. U.S. TRUSTEE FEES -- -- -- -- --
21. OTHER REORGANIZATION EXPENSES (ATTACH LIST) -- -- -- -- --
---------- ---------- ---------- ---------- ----------
TOTAL DISBURSEMENTS -- -- -- -- 42,040
========== ========== ========== ========== ==========
22. NET CASH FLOW 14,213 (10,136) -- -- (42,040)
---------- ---------- ---------- ---------- ----------
23. CASH - END OF MONTH (MOR-2) 52,177 42,040 42,040 42,040 --
========== ========== ========== ========== ==========
<Caption>
MONTH MONTH MONTH MONTH FILING TO
CASH RECEIPTS AND DISBURSEMENTS JUNE JULY AUGUST SEPTEMBER DATE
- ------------------------------- ---------- ---------- ---------- ---------- ----------
1. CASH - BEGINNING OF MONTH -- 37,964
RECEIPTS:
2. CASH SALES -- -- -- -- --
3. COLLECTION OF ACCOUNTS RECEIVABLE -- -- -- -- --
4. LOANS & ADVANCES (ATTACH LIST) -- -- -- -- --
5. SALE OF ASSETS -- -- -- -- --
6. OTHER - INVESTMENT INCOME -- -- -- -- --
---------- ---------- ---------- ---------- ----------
TOTAL RECEIPTS -- -- -- -- --
========== ========== ========== ========== ==========
(Withdrawal) Contribution by Individual Debtor MFR-2*
DISBURSEMENTS:
7. NET PAYROLL -- -- -- -- --
8. PAYROLL TAXES PAID -- -- -- -- --
9. SALES, USE & OTHER TAXES PAID -- -- -- -- --
10. SECURED / RENTAL / LEASES -- -- -- -- --
11. UTILITIES -- -- -- -- --
12. INSURANCE -- -- -- -- --
13. INVENTORY PURCHASES -- -- -- -- --
14. VEHICLE EXPENSES -- -- -- -- --
15. TRAVEL ENTERTAINMENT -- -- -- -- --
16. REPAIRS, MAINTENANCE & SUPPLIES -- -- -- -- --
17. ADMINISTRATIVE & SELLING 42,040 42,040
18. OTHER (ATTACH LIST) -- -- -- -- --
---------- ---------- ---------- ---------- ----------
TOTAL DISBURSEMENTS FROM OPERATIONS 42,040 -- -- -- 42,040
========== ========== ========== ========== ==========
19. PROFESSIONAL FEES -- -- -- -- --
20. U.S. TRUSTEE FEES -- -- -- -- --
21. OTHER REORGANIZATION EXPENSES (ATTACH LIST) -- -- -- -- --
---------- ---------- ---------- ---------- ----------
TOTAL DISBURSEMENTS 42,040 -- -- -- 42,040
========== ========== ========== ========== ==========
22. NET CASH FLOW (42,040) -- -- -- (42,040)
---------- ---------- ---------- ---------- ----------
23. CASH - END OF MONTH (MOR-2) (42,040) -- -- -- (4,076)
========== ========== ========== ========== ==========
</Table>
* applies to Individual debtor's only.
MOR-7
CASE NAME: PACIFIC NORTHWEST HOMES, INC. CASE NUMBER: 01-80036-G3-11
CASH ACCOUNT RECONCILIATION
MONTH OF SEPTEMBER 2001
<Table>
<Caption>
BANK NAME Morgan Stanley
- --------- --------------
ACCOUNT NUMBER # 109121714
ACCOUNT TYPE INVESTMENT TOTAL
----------- -----------
BANK BALANCE -- --
DEPOSIT IN TRANSIT -- --
OUTSTANDING CHECKS -- --
----- -----
ADJUSTED BANK BALANCE -- --
===== =====
BEGINNING CASH - PER BOOKS -- --
RECEIPTS -- --
TRANSFERS BETWEEN ACCOUNTS -- --
(WITHDRAWAL) CONTRIBUTION - BY INDIVIDUAL DEBTOR MFR-2 -- --
CHECKS / OTHER DISBURSEMENTS -- --
----- -----
ENDING CASH - PER BOOKS -- --
===== =====
</Table>
MOR-8
CASE NAME: PACIFIC NORTHWEST HOMES, INC. CASE NUMBER: 01-80036-G3-11
PAYMENTS TO INSIDERS AND PROFESSIONALS
OF THE TOTAL DISBURSEMENTS SHOWN FOR THE MONTH, LIST THE AMOUNT PAID TO INSIDERS
(AS DEFINED IN SECTION 101(30)(A)-(F) OF THE U. S. BANKRUPTCY CODE) AND THE
PROFESSIONALS. ALSO, FOR INSIDERS IDENTIFY THE TYPE OF COMPENSATION PAID (e.g.,
SALARY, COMMISSION, BONUS, ETC.) (ATTACH ADDITIONAL PAGES AS NECESSARY).
<Table>
<Caption>
MONTH MONTH MONTH MONTH MONTH
INSIDERS: NAME/POSITION/COMP TYPE JANUARY FEBRUARY MARCH APRIL MAY
- --------------------------------- -------- -------- -------- -------- --------
1. Ray McKinney/President -- -- -- -- --
2. Craig A. Reynolds/Secretary, Director -- -- -- -- --
3. Kristi E. Gross/Assistant Secretary -- -- -- -- --
4. Charles N. Carney, Jr./Director -- -- -- -- --
5. -- -- -- -- --
6. -- -- -- -- --
-------- -------- -------- -------- --------
TOTAL INSIDERS (MOR-1) -- -- -- -- --
======== ======== ======== ======== ========
<Caption>
MONTH MONTH MONTH MONTH
INSIDERS: NAME/POSITION/COMP TYPE JUNE JULY AUGUST SEPTEMBER
- --------------------------------- -------- -------- -------- ---------
1. Ray McKinney/President -- -- -- --
2. Craig A. Reynolds/Secretary, Director -- -- -- --
3. Kristi E. Gross/Assistant Secretary -- -- -- --
4. Charles N. Carney, Jr./Director -- -- -- --
5. -- -- -- --
6. -- -- -- --
-------- -------- -------- --------
TOTAL INSIDERS (MOR-1) -- -- -- --
======== ======== ======== ========
</Table>
<Table>
<Caption>
MONTH MONTH MONTH MONTH MONTH
PROFESSIONALS/NAME/ORDER DATE JANUARY FEBRUARY MARCH APRIL MAY
- ----------------------------- -------- -------- -------- -------- --------
1. -- -- -- -- --
2. -- -- -- -- --
3. -- -- -- -- --
4. -- -- -- -- --
5. -- -- -- -- --
6. -- -- -- -- --
-------- -------- -------- -------- --------
TOTAL PROFESSIONALS (MOR-1) -- -- -- -- --
======== ======== ======== ======== ========
<Caption>
MONTH MONTH MONTH MONTH
PROFESSIONALS/NAME/ORDER DATE JUNE JULY AUGUST SEPTEMBER
- ----------------------------- -------- -------- -------- ---------
1. -- -- -- --
2. -- -- -- --
3. -- -- -- --
4. -- -- -- --
5. -- -- -- --
6. -- -- -- --
-------- -------- -------- --------
TOTAL PROFESSIONALS (MOR-1) -- -- -- --
======== ======== ======== ========
</Table>
MOR-9
UNITED STATES BANKRUPTCY COURT
SOUTHERN DISTRICT OF TEXAS
HOUSTON DIVISION
<Table>
CASE NAME: PACIFIC II NORTHWEST HOMES, INC. PETITION DATE: JANUARY 11, 2001
CASE NUMBER: 01-80037-G3-11
MONTHLY OPERATING REPORT SUMMARY FOR MONTH SEPTEMBER YEAR 2001
--------- ----
MONTH JANUARY FEBRUARY MARCH APRIL MAY
----- ------- ---------- -------- -------- ----------
REVENUES (MOR-6) 398,636 637,701 711,510 783,988 373,075
INCOME BEFORE INT, DEPREC./TAX (MOR-6) (87,217) (1,595,003) (289,736) (423,645) (1,148,824)
NET INCOME (LOSS) (MOR-6) (97,224) (1,604,696) (299,429) (423,645) (1,148,824)
PAYMENTS TO INSIDERS (MOR-9) -- -- -- -- --
PAYMENTS TO PROFESSIONALS (MOR-9) -- -- 90 330 5,896
TOTAL DISBURSEMENTS (MOR-8) 10,655 610,423 765,069 751,401 429,363
<Caption>
MONTH JUNE JULY AUGUST SEPTEMBER
----- -------- -------- ------- ---------
REVENUES (MOR-6) 226,068 32,840 44,340 27,952
INCOME BEFORE INT, DEPREC./TAX (MOR-6) (397,365) (108,123) (49,000) (34,997)
NET INCOME (LOSS) (MOR-6) (397,365) (108,123) (49,000) (34,997)
PAYMENTS TO INSIDERS (MOR-9) -- -- -- --
PAYMENTS TO PROFESSIONALS (MOR-9) 1,726 -- 990 826
TOTAL DISBURSEMENTS (MOR-8) 176,406 155,133 70,864 46,832
</Table>
*** The ORIGINAL of this document MUST BE FILED with the United States
Bankruptcy Court and a COPY MUST BE SENT to the United States Trustee ***
- --------------------------------------------------------------------------------
REQUIRED INSURANCE MAINTAINED
AS OF SIGNATURE DATE
<Table>
<Caption>
EXP.
DATE
----
CASUALTY YES (X) NO ( ) 06/30/02
LIABILITY YES (X) NO ( ) 06/30/02
VEHICLE YES (X) NO ( ) 06/30/02
WORKER'S YES (X) NO ( ) 04/01/02
OTHER - DIRECTOR/OFFICER YES (X) NO ( ) 01/23/02
</Table>
- --------------------------------------------------------------------------------
ATTORNEY NAME:
FIRM: Floyd, Isgur, Rios & Warlich, P. C.
Address: 700 Louisiana, Suite 4600
Address:
City, State, ZIP: Houston, TX 77002-2732
Telephone: 713-222-1470
Fax: 713-222-1475
- --------------------------------------------------------------------------------
<Table>
<Caption>
CIRCLE ONE
Are all accounts receivable being collected within terms? YES NO
Are all posted-petition liabilities, including taxes, being paid within terms? YES NO
Have any pre-petition liabilities been paid? YES NO
If so, describe. PURSUANT TO COURT ORDER AUTHORIZING PAYMENTS OF PRE-PETITION
WAGES, SALARIES, COMMISSIONS AND COMPENSATION SIGNED JANUARY 11, 2001.
Are all funds received being deposited into DIP bank accounts? YES NO
Were any assets disposed of outside the normal course of business? YES NO
If so, describe.
--------------------------------------------------------------
- -------------------------------------------------------------------------------.
Are all U.S. Trustee Quarterly Fee Payments current? YES NO
What is the status of your Plan of Reorganization? PLAN OF REORGANIZATION CONFIRMED
BY COURT ON AUGUST 14, 2001. EFFECTIVE DATE OF REORGANIZATION - OCTOBER 3, 2001.
</Table>
I certify under penalty of perjury that the
following complete Monthly Operating Report
(MOR), consisting of MOR-1 through MOR-9
plus attachments, is true and correct.
SIGNED /s/ CRAIG A. REYNOLDS
------------------------------------
TITLE Vice President of Finance
------------------------------------
MOR-1
CASE NAME: PACIFIC II NORTHWEST HOMES, INC. CASE NUMBER: 01-80037-G3-11
COMPARATIVE BALANCE SHEETS
<Table>
<Caption>
MONTH MONTH MONTH MONTH MONTH
ASSETS FILING DATE* JANUARY FEBRUARY MARCH APRIL MAY
------ ------------ --------- --------- --------- --------- -------
CURRENT ASSETS
Cash 15,204 55,338 (33,228) 1,204,060 467,414 415,760
Accounts Receivable, Net 661,750 720,814 425,985 283,595 275,940 83,952
Inventory: Lower of Cost or Market 3,856,465 3,440,795 2,462,676 1,774,669 850,528 --
Prepaid Expenses (32,834) (36,137) 14,552 22,569 18,824 14,420
Investments -- -- -- -- -- --
Other -- -- -- -- -- --
--------- --------- --------- --------- --------- -------
TOTAL CURRENT ASSETS 4,500,586 4,180,810 2,869,984 3,284,893 1,612,706 514,132
========= ========= ========= ========= ========= =======
PROPERTY, PLANT&EQUIP, @ COST 891,732 921,732 921,732 921,732 921,732 921,732
Less Accumulated Depreciation 379,713 389,720 399,413 409,106 419,021 428,579
Less Impairment of Assets 336,374 336,374 316,765 493,153
--------- --------- --------- --------- --------- -------
Net Book Value of PP & E 512,019 532,012 185,945 176,252 185,945 --
========= ========= ========= ========= ========= =======
OTHER ASSETS:
1. Tax Deposits -- -- -- -- -- --
2. Investments in Subs -- -- -- -- -- --
3. Deposits 2,450 2,450 2,450 2,450 2,450 2,450
4. Interests in Insurance Policies -- -- -- -- -- --
5. Note Receivable 2,000 2,000 2,000 2,000 2,000 --
6. Other Assets 806,029 806,029 806,029 806,029 806,029 --
7. Non-Filing Intercompany 86,138 86,138 75,752 --
8. Post-Petition Intercompany -- 96,083 78,074 -- -- --
--------- --------- --------- --------- --------- -------
TOTAL ASSETS 5,823,084 5,619,383 4,030,621 4,357,762 2,684,883 516,582
========= ========= ========= ========= ========= =======
<Caption>
MONTH MONTH MONTH MONTH
ASSETS JUNE JULY AUGUST SEPTEMBER
------ ------- ------- ------ ---------
CURRENT ASSETS
Cash 542,332 483,220 489,162 143,333
Accounts Receivable, Net 55,796 (1,543) 1,543 --
Inventory: Lower of Cost or Market -- (40,973) -- 2
Prepaid Expenses 14,420 11,762 14,420 14,420
Investments -- -- -- --
Other -- -- -- --
------- ------- ------- -------
TOTAL CURRENT ASSETS 612,548 452,467 505,125 157,755
======= ======= ======= =======
PROPERTY, PLANT&EQUIP, @ COST 921,732 921,732 598,327 456,658
Less Accumulated Depreciation 428,579 444,611 336,779 275,830
Less Impairment of Assets 493,153 477,121 261,549 180,828
------- ------- ------- -------
Net Book Value of PP & E -- -- (0) (0)
======= ======= ======= =======
OTHER ASSETS:
1. Tax Deposits -- -- -- --
2. Investments in Subs -- -- -- --
3. Deposits 2,450 2,450 2,450 2,450
4. Interests in Insurance Policies -- -- -- --
5. Note Receivable -- -- -- --
6. Other Assets -- -- -- --
7. Non-Filing Intercompany -- -- -- --
8. Post-Petition Intercompany -- -- -- --
------- ------- ------- -------
TOTAL ASSETS 614,998 454,917 507,575 160,205
======= ======= ======= =======
</Table>
* Per Schedules and Statement of Affairs
MOR-2
CASE NAME: PACIFIC II NORTHWEST HOMES, INC. CASE NUMBER: 01-80037-G3-11
COMPARATIVE BALANCE SHEETS
<Table>
<Caption>
LIABILITIES & OWNER'S MONTH MONTH MONTH MONTH MONTH
EQUITY FILING DATE* JANUARY FEBRUARY MARCH APRIL MAY
- --------------------- ------------ ---------- ---------- ---------- ---------- ----------
LIABILITIES:
POST-PETITION LIABILITIES (MOR-4) 87,154 292,976 1,373,307 673,265 805,541
PRE-PETITION LIABILITIES:
Notes Payable - Secured 3,829,975 3,609,247 2,930,457 2,476,848 1,308,112 --
Priority Debt 162,084 72,928 56,324 58,270 39,846 27,618
Federal Income Tax -- -- -- -- -- --
FICA/Withholding -- -- -- -- -- --
Unsecured Debt 479,612 478,462 346,416 344,318 972,510 1,135,412
Intercompany 5,065,535 5,182,938 5,820,489 5,820,489 5,830,265 5,835,950
Other -- -- -- -- -- --
---------- ---------- ---------- ---------- ---------- ----------
TOTAL PRE-PETITION LIABILITIES 9,537,205 9,343,575 9,153,686 8,699,925 8,150,733 6,998,980
---------- ---------- ---------- ---------- ---------- ----------
TOTAL LIABILITIES 9,537,205 9,430,729 9,446,663 10,073,232 8,823,998 7,804,521
========== ========== ========== ========== ========== ==========
OWNER'S EQUITY (DEFICIT):
Preferred Stock -- -- -- -- -- --
Common Stock -- -- -- -- -- --
ADDITIONAL PAID-IN CAPITAL 1,658,002 1,658,002 1,658,002 1,658,002 1,658,002 1,658,002
RETAINED EARNINGS: Filing Date (5,372,123) (5,372,123) (5,372,123) (5,372,123) (5,372,123) (5,372,123)
RETAINED EARNINGS: Post Filing Date -- (97,225) (1,701,921) (2,001,349) (2,424,995) (3,573,819)
---------- ---------- ---------- ---------- ---------- ----------
TOTAL OWNER'S EQUITY (NET WORTH) (3,714,121) (3,811,346) (5,416,042) (5,715,470) (6,139,115) (7,287,939)
---------- ---------- ---------- ---------- ---------- ----------
TOTAL LIABILITIES &
OWNER'S EQUITY 5,823,085 5,619,383 4,030,621 4,357,762 2,684,883 516,582
========== ========== ========== ========== ========== ==========
<Caption>
LIABILITIES & OWNER'S MONTH MONTH MONTH MONTH
EQUITY JUNE JULY AUGUST SEPTEMBER
- --------------------- ---------- ---------- ---------- ----------
LIABILITIES:
POST-PETITION LIABILITIES (MOR-4) 1,063,097 1,038,063 1,102,672 767,917
PRE-PETITION LIABILITIES:
Notes Payable - Secured -- (94,573) -- (102,307)
Priority Debt 49,134 35,146 35,146 35,146
Federal Income Tax -- -- -- --
FICA/Withholding -- -- -- --
Unsecured Debt 1,352,121 1,382,017 1,374,690 1,453,875
Intercompany 5,835,950 5,835,950 5,835,950 5,835,950
Other -- -- -- --
---------- ---------- ---------- ----------
TOTAL PRE-PETITION LIABILITIES 7,237,205 7,158,541 7,245,787 7,222,664
---------- ---------- ---------- ----------
TOTAL LIABILITIES 8,300,302 8,196,604 8,348,459 7,990,580
========== ========== ========== ==========
OWNER'S EQUITY (DEFICIT):
Preferred Stock -- -- -- --
Common Stock -- -- -- --
ADDITIONAL PAID-IN CAPITAL 1,658,002 1,658,002 1,658,002 1,658,002
RETAINED EARNINGS: Filing Date (5,372,123) (5,372,123) (5,372,123) (5,372,123)
RETAINED EARNINGS: Post Filing Date (3,971,183) (4,027,566) (4,027,566) (4,027,566)
---------- ---------- ---------- ----------
TOTAL OWNER'S EQUITY (NET WORTH) (7,685,304) (7,741,687) (7,840,884) (7,830,375)
---------- ---------- ---------- ----------
TOTAL LIABILITIES &
OWNER'S EQUITY 614,998 454,917 507,575 160,205
========== ========== ========== ==========
</Table>
* Per Schedules and Statement of Affairs
MOR-3
CASE NAME: PACIFIC II NORTHWEST HOMES, INC. CASE NUMBER: 01-80037-G3-11
SCHEDULE OF POST-PETITION LIABILITIES
<Table>
<Caption>
MONTH MONTH MONTH MONTH MONTH
JANUARY FEBRUARY MARCH APRIL MAY
------- -------- --------- ------- -------
TRADE ACCOUNTS PAYABLE 11,716 18,541 78,489 53,351 306,257
------ ------- --------- ------- -------
TAX PAYABLE
Federal Payroll Taxes 8,572 17,429 21,729 18,963 5,208
State Payroll & Sales 18,907 17,929 43,251 33,373 18,749
Ad Valorem Taxes 2,900 2,000 4,900 7,800 10,700
Other Taxes -- -- -- -- --
------ ------- --------- ------- -------
TOTAL TAXES PAYABLE 30,379 37,357 69,879 60,136 34,657
====== ======= ========= ======= =======
SECURED DEBT POST-PETITION -- -- -- -- --
ACCRUED INTEREST PAYABLE -- -- -- -- --
* ACCRUED PROFESSIONAL FEES -- -- -- -- --
OTHER ACCRUED LIABILITIES:
1. Deposits (See AP Trade) 6,432 39,673 29,125 44,479 --
2. Salaries 38,628 40,996 38,938 17,452 17,957
3. Cost of Sales 108,634 84,050 59,209 --
4. Associates Advances 47,776 47,776 235,109 --
5. Intercompany 1,025,051 203,530 446,669
------ ------- --------- ------- -------
TOTAL POST-PETITION LIABILITIES (MOR-3) 87,154 292,976 1,373,307 673,265 805,541
====== ======= ========= ======= =======
<Caption>
MONTH MONTH MONTH MONTH
JUNE JULY AUGUST SEPTEMBER
--------- --------- --------- ---------
TRADE ACCOUNTS PAYABLE 535,389 522,258 583,290 644,389
--------- --------- --------- -------
TAX PAYABLE
Federal Payroll Taxes 6,529 1,141 2,538 1,309
State Payroll & Sales 1,898 -- -- --
Ad Valorem Taxes 13,600 13,600 13,600 13,600
Other Taxes -- -- -- --
--------- --------- --------- -------
TOTAL TAXES PAYABLE 22,026 14,741 16,138 14,909
========= ========= ========= =======
SECURED DEBT POST-PETITION -- -- -- --
ACCRUED INTEREST PAYABLE -- -- -- --
* ACCRUED PROFESSIONAL FEES -- -- -- --
OTHER ACCRUED LIABILITIES:
1. Deposits (See AP Trade) -- -- -- --
2. Salaries 12,997 5,880 8,060 5,987
3. Cost of Sales
4. Associates Advances
5. Intercompany 492,684 495,184 495,184 102,632
--------- --------- --------- -------
TOTAL POST-PETITION LIABILITIES (MOR-3) 1,063,097 1,038,063 1,102,672 767,917
========= ========= ========= =======
</Table>
* Payment Requires Court Approval.
MOR-4
CASE NAME: PACIFIC II NORTHWEST HOMES, INC. CASE NUMBER: 01-80037-G3-11
AGING OF POST-PETITION LIABILITIES
MONTH OF SEPTEMBER
<Table>
<Caption>
AD-VALOREM,
DAYS TOTAL TRADE ACCTS FED TAXES STATE TAXES OTHER TAXES OTHER
---- ------- ----------- --------- ----------- ----------- -------
0-30 767,917 644,389 1,309 13,600 108,619
31-60 -- --
61-90 --
91 + --
TOTAL 767,917 644,389 1,309 -- 13,600 108,619
</Table>
AGING OF ACCOUNTS RECEIVABLE
<Table>
<Caption>
MONTH JANUARY FEBRUARY MARCH APRIL MAY
----- ------- -------- ------- ------- ------
0-30 DAYS 193,048 -- -- --
31-60 DAYS 236,260 42,783 -- -- --
61-90 DAYS 1,488 20,295 -- -- --
91 + DAYS 290,017 362,906 283,595 275,940 83,952
TOTAL 720,814 425,985 283,595 275,940 83,952
<Caption>
MONTH JUNE JULY AUGUST SEPTEMBER
----- ------- ------ ------ ---------
0-30 DAYS -- -- -- --
31-60 DAYS -- -- -- --
61-90 DAYS -- -- -- --
91 + DAYS 55,796 (1,543) 1,543 --
TOTAL 55,796 (1,543) 1,543 --
</Table>
MOR-5
CASE NAME: PACIFIC II NORTHWEST HOMES, INC. CASE NUMBER: 01-80037-G3-11
STATEMENT OF INCOME (LOSS)
<Table>
<Caption>
MONTH JANUARY FEBRUARY MARCH APRIL MAY
----- ------- ---------- -------- --------- ----------
REVENUES (MOR-1) 398,636 637,701 711,510 783,988 373,075
TOTAL COST OF REVENUES 435,013 811,638 888,979 1,067,904 197,505
GROSS PROFIT (36,377) (173,937) (177,469) (283,916) 175,570
OPERATING EXPENSES:
Selling & Marketing 28,205 67,832 50,704 60,573 61,821
General & Administrative 22,635 54,175 61,563 81,502 55,991
Insiders Compensation -- -- -- --
Professional Fees -- -- 13,032 4,292
Impairment of Assets -- 1,299,059 (15,378) 1,202,290
Other (attach list) -- -- -- --
------- ---------- -------- -------- ----------
TOTAL OPERATING EXPENSES 50,840 1,421,066 112,267 139,729 1,324,394
======= ========== ======== ======== ==========
INCOME BEFORE INT, DEPR/TAX (MOR-1) (87,217) (1,595,003) (289,736) (423,645) (1,148,824)
======= ========== ======== ======== ==========
INTEREST EXPENSE -- -- -- -- --
DEPRECIATION 10,007 9,693 9,693 -- --
OTHER (INCOME) EXPENSE * -- -- -- -- --
OTHER ITEMS ** -- -- -- -- --
------- ---------- -------- -------- ----------
TOTAL INT, DEPR & OTHER ITEMS 10,007 9,693 9,693 -- --
------- ---------- -------- -------- ----------
NET INCOME BEFORE TAXES (97,224) (1,604,696) (299,429) (423,645) (1,148,824)
======= ========== ======== ======== ==========
FEDERAL INCOME TAXES -- --
------- ---------- -------- -------- ----------
NET INCOME (LOSS) (MOR-1) (97,224) (1,604,696) (299,429) (423,645) (1,148,824)
======= ========== ======== ======== ==========
<Caption>
MONTH JUNE JULY AUGUST SEPTEMBER FILING TO DATE
----- -------- -------- ------- --------- --------------
REVENUES (MOR-1) 226,068 32,840 44,340 27,952 3,236,110
TOTAL COST OF REVENUES 312,730 100,512 45,147 40,866 3,900,294
GROSS PROFIT (86,662) (67,672) (807) (12,914) (664,184)
OPERATING EXPENSES:
Selling & Marketing 126,485 27,598 38,533 8,931 470,682
General & Administrative 20,667 6,877 9,660 13,124 50,328
Insiders Compensation -- -- -- -- --
Professional Fees 7,187 -- -- 28 7,215
Impairment of Assets 156,364 5,976 -- -- 162,340
Other (attach list) -- -- -- -- --
-------- -------- ------- ------- ----------
TOTAL OPERATING EXPENSES 310,703 40,451 48,193 22,083 690,565
======== ======== ======= ======= ==========
INCOME BEFORE INT, DEPR/TAX (MOR-1) (397,365) (108,123) (49,000) (34,997) (1,354,749)
======== ======== ======= ======= ==========
INTEREST EXPENSE -- -- -- -- --
DEPRECIATION -- -- -- -- 29,393
OTHER (INCOME) EXPENSE * -- -- -- -- --
OTHER ITEMS ** -- -- -- -- --
-------- -------- ------- ------- ----------
TOTAL INT, DEPR & OTHER ITEMS -- -- -- -- 29,393
-------- -------- ------- ------- ----------
NET INCOME BEFORE TAXES (397,365) (108,123) (49,000) (34,997) (1,384,142)
======== ======== ======= ======= ==========
FEDERAL INCOME TAXES -- -- -- -- --
-------- -------- ------- ------- ----------
NET INCOME (LOSS) (MOR-1) (397,365) (108,123) (49,000) (34,997) (1,384,142)
======== ======== ======= ======= ==========
</Table>
Accrual Accounting Required, Otherwise Footnote With Explanation
* Footnote Mandatory
** Unusual and/or infrequent item(s) outside the ordinary course of business;
requires footnote
MOR-6
CASE NAME: PACIFIC II NORTHWEST HOMES, INC. CASE NUMBER: 01-80037-G3-11
<Table>
<Caption>
MONTH MONTH MONTH MONTH MONTH
CASH RECEIPTS AND DISBURSEMENTS JANUARY FEBRUARY MARCH APRIL MAY
- -------------------------------- ------- --------- ---------- --------- --------
1. CASH - BEGINNING OF MONTH 15,204 55,338 (33,228) 1,204,060 467,414
RECEIPTS:
2. CASH SALES 40,700 162,570 702,045 780,200 229,299
3. COLLECTION OF ACCOUNTS RECEIVABLE 7,886 7,734 -- --
4. LOANS & ADVANCES (ATTACH LIST) -- -- --
5. SALE OF ASSETS -- -- --
6. CUSTOMER DEPOSITS 2,202 -- --
7. INTERCOMPANY 346,460 1,300,313 -- 148,410
8. OTHER (ATTACH LIST) -- -- --
------- --------- ---------- --------- --------
TOTAL RECEIPTS 50,788 516,764 2,002,358 780,200 377,709
======= ========= ========== ========= ========
(Withdrawal) Contribution by Individual Debtor MFR-2*
DISBURSEMENTS:
8. NET PAYROLL -- --
9. PAYROLL TAXES PAID -- 10,816 --
10. SALES, USE & OTHER TAXES PAID -- 21,230 19,461 43,251 35,235
11. SECURED / RENTAL / LEASES -- 569,797 642,115 585,528 320,425
12. UTILITIES -- 545 3,503 10,940 6,029
13. INSURANCE 2,345 2,526 13,862 5,809 4,100
14. INVENTORY PURCHASES -- 775 24,079 11,691 5,916
15. VEHICLE EXPENSES 400 977 1,066 692 934
16. TRAVEL ENTERTAINMENT -- -- 282 --
17. REPAIRS, MAINTENANCE & SUPPLIES -- 1,946 47,759 62,999 43,307
18. ADMINISTRATIVE & SELLING 7,910 1,459 7,244 1,066 832
19. DELIVERY 6,075 5,890 12,748 6,190
20. INTERCOMPANY 765,445 --
21. OTHER (ATTACH LIST) -- -- --
------- --------- ---------- --------- --------
TOTAL DISBURSEMENTS FROM OPERATIONS 10,655 605,330 764,979 1,511,266 422,968
======= ========= ========== ========= ========
20. PROFESSIONAL FEES -- 90 330 5,896
21. U.S. TRUSTEE FEES -- 5,250 500
22. OTHER REORGANIZATION EXPENSES (ATTACH LIST) --
------- --------- ---------- --------- --------
TOTAL DISBURSEMENTS 10,655 605,330 765,069 1,516,846 429,363
======= ========= ========== ========= ========
23. NET CASH FLOW 40,134 (88,566) 1,237,288 (736,646) (51,654)
------- --------- ---------- --------- --------
24. CASH - END OF MONTH (MOR-2) 55,338 (33,228) 1,204,060 467,414 415,760
======= ========= ========== ========= ========
<Caption>
MONTH MONTH MONTH MONTH FILING TO
CASH RECEIPTS AND DISBURSEMENTS JUNE JULY AUGUST SEPTEMBER DATE
- -------------------------------- -------- -------- -------- --------- ---------
1. CASH - BEGINNING OF MONTH 415,760 542,332 483,220 489,162 415,760
RECEIPTS:
2. CASH SALES 187,159 51,896 23,590 71,280 333,925
3. COLLECTION OF ACCOUNTS RECEIVABLE -- -- -- 1,543 1,543
4. LOANS & ADVANCES (ATTACH LIST) -- -- -- -- --
5. SALE OF ASSETS -- -- -- -- --
6. CUSTOMER DEPOSITS -- -- -- -- --
7. INTERCOMPANY 115,819 44,125 53,216 -- 213,160
8. OTHER (ATTACH LIST) --
-------- -------- -------- -------- --------
TOTAL RECEIPTS 302,978 96,020 76,806 72,823 548,628
======== ======== ======== ======== ========
(Withdrawal) Contribution by Individual Debtor MFR-2*
DISBURSEMENTS:
8. NET PAYROLL -- -- -- 5,282 5,282
9. PAYROLL TAXES PAID -- -- -- 1,297 1,297
10. SALES, USE & OTHER TAXES PAID 19,336 5,684 5,011 3,067 33,097
11. SECURED / RENTAL / LEASES 95,407 16,157 30,599 4,642 146,804
12. UTILITIES 3,998 1,576 7,933 340 13,846
13. INSURANCE 3,430 2,221 1,054 1,463 8,169
14. INVENTORY PURCHASES 2,112 116,672 24,792 28,921 172,497
15. VEHICLE EXPENSES 524 544 200 724 1,993
16. TRAVEL ENTERTAINMENT 706 -- -- -- 706
17. REPAIRS, MAINTENANCE & SUPPLIES 29,284 865 251 3,759 34,158
18. ADMINISTRATIVE & SELLING 504 1,872 44 178 2,599
19. DELIVERY 19,379 1,434 -- -- 20,813
20. INTERCOMPANY -- -- -- 365,654 365,654
21. OTHER (ATTACH LIST) -- -- -- -- --
-------- -------- -------- -------- --------
TOTAL DISBURSEMENTS FROM OPERATIONS 174,680 147,025 69,883 415,326 806,915
======== ======== ======== ======== ========
20. PROFESSIONAL FEES 1,726 1,726
21. U.S. TRUSTEE FEES -- -- 981 -- 981
22. OTHER REORGANIZATION EXPENSES (ATTACH LIST) -- 8,108 -- 3,326 11,434
-------- -------- -------- -------- --------
TOTAL DISBURSEMENTS 176,406 155,133 70,864 418,652 821,055
======== ======== ======== ======== ========
23. NET CASH FLOW 126,572 (59,112) 5,942 (345,829) (272,427)
-------- -------- -------- -------- --------
24. CASH - END OF MONTH (MOR-2) 542,332 483,220 489,162 143,333 143,333
======== ======== ======== ======== ========
</Table>
* applies to Individual debtor's only.
MOR-7
CASE NAME: PACIFIC II NORTHWEST HOMES, INC. CASE NUMBER: 01-80037-G3-11
CASH ACCOUNT RECONCILIATION
MONTH OF SEPTEMBER 2001
<Table>
<Caption>
BANK NAME Bank of America Bank of America Petty Cash
- --------- --------------- --------------- ----------
ACCOUNT NUMBER # 3755500250
GRAND
ACCOUNT TYPE OPERATING PAYROLL OTHER FUNDS TOTAL
--------- ------- ----------- --------
BANK BALANCE 115,568 27,267 500 143,334
DEPOSIT IN TRANSIT -- -- --
OUTSTANDING CHECKS -- -- --
-------- ------ --- --------
ADJUSTED BANK BALANCE 115,568 27,267 500 143,334
======== ====== === ========
BEGINNING CASH - PER BOOKS 458,312 30,350 500 489,161
RECEIPTS 72,823 -- -- 72,823
TRANSFERS BETWEEN ACCOUNTS (362,571) (3,083) -- (365,654)
(WITHDRAWAL) CONTRIBUTION - BY INDIVIDUAL DEBTOR MFR-2 -- -- -- --
CHECKS / OTHER DISBURSEMENTS (52,997) -- -- (52,997)
-------- ------ --- --------
ENDING CASH - PER BOOKS 115,567 27,267 500 143,334
======== ====== === ========
</Table>
MOR-8
CASE NAME: PACIFIC II NORTHWEST HOMES, INC. CASE NUMBER: 01-80037-G3-11
PAYMENTS TO INSIDERS AND PROFESSIONALS
OF THE TOTAL DISBURSEMENTS SHOWN FOR THE MONTH, LIST THE AMOUNT PAID TO INSIDERS
(AS DEFINED IN SECTION 101(30)(A)-(F) OF THE U. S. BANKRUPTCY CODE) AND THE
PROFESSIONALS. ALSO, FOR INSIDERS IDENTIFY THE TYPE OF COMPENSATION PAID (e.g.,
SALARY, COMMISSION, BONUS, ETC.) (ATTACH ADDITIONAL PAGES AS NECESSARY).
<Table>
<Caption>
MONTH MONTH MONTH MONTH MONTH
INSIDERS: NAME/POSITION/COMP TYPE JANUARY FEBRUARY MARCH APRIL MAY
- --------------------------------- ------- -------- ----- ----- -----
1. Ray McKinney/President/Salary, Expenses -- -- -- -- --
2. Craig A. Reynolds/Secretary, Director -- -- -- -- --
3. Kristi E. Gross/Assistant Secretary -- -- -- -- --
4. Charles N. Carney, Jr./Director -- -- -- -- --
5. -- -- -- -- --
6. -- -- -- -- --
------- -------- ----- ----- -----
TOTAL INSIDERS (MOR-1) -- -- -- -- --
======= ======== ===== ===== =====
<Caption>
MONTH MONTH MONTH MONTH
INSIDERS: NAME/POSITION/COMP TYPE JUNE JULY AUGUST SEPTEMBER
- --------------------------------- ----- ----- ------ ---------
1. Ray McKinney/President/Salary, Expenses -- -- -- --
2. Craig A. Reynolds/Secretary, Director -- -- -- --
3. Kristi E. Gross/Assistant Secretary -- -- -- --
4. Charles N. Carney, Jr./Director -- -- -- --
5. -- -- -- --
6. -- -- -- --
----- ----- ------ ---------
TOTAL INSIDERS (MOR-1) -- -- -- --
===== ===== ====== =========
</Table>
<Table>
<Caption>
MONTH MONTH MONTH MONTH MONTH
PROFESSIONALS/NAME/ORDER DATE JANUARY FEBRUARY MARCH APRIL MAY
- ----------------------------- ------- -------- ----- ----- -----
1.Floyd, Isgur, Rios and Warlich -- -- 90 330 2,284
2.Strategic Capital Corporation -- -- -- -- 3,612
3 -- -- -- -- --
4 -- -- -- -- --
5 -- -- -- -- --
6 -- -- -- -- --
----- ----- ----- ----- -----
TOTAL PROFESSIONALS (MOR-1) -- -- 90 330 5,896
===== ===== ===== ===== =====
<Caption>
MONTH MONTH MONTH MONTH
PROFESSIONALS/NAME/ORDER DATE JUNE JULY AUGUST SEPTEMBER
- ----------------------------- ----- ----- ------ ---------
1.Floyd, Isgur, Rios and Warlich -- -- -- --
2.Strategic Capital Corporation 1,726 -- 980 826
3 -- -- -- --
4 -- -- -- --
5 -- -- -- --
6 -- -- -- --
----- ----- ----- -----
TOTAL PROFESSIONALS (MOR-1) 1,726 -- 980 826
===== ===== ===== =====
</Table>
MOR-9
UNITED STATES BANKRUPTCY COURT
SOUTHERN DISTRICT OF TEXAS
HOUSTON DIVISION
<Table>
CASE NAME: R-ANELL CUSTOM HOMES, INC. PETITION DATE: JANUARY 11, 2001
CASE NUMBER: 01-80038-G3-11
MONTHLY OPERATING REPORT SUMMARY FOR MONTH SEPTEMBER YEAR 2001
--------- ----
MONTH JANUARY FEBRUARY MARCH APRIL MAY
----- ---------- ---------- ---------- ---------- ----------
REVENUES (MOR-6) 495,641 1,973,058 285 -- --
INCOME BEFORE INT, DEPREC./TAX (MOR-6) (989,980) (7,596,395) (1,461,924) 392,996 2,647,639
NET INCOME (LOSS) (MOR-6) (897,670) (7,596,395) (1,461,924) 392,996 2,647,639
PAYMENTS TO INSIDERS (MOR-9) 14,405 17,083 13,968 -- --
PAYMENTS TO PROFESSIONALS (MOR-9) -- -- --
TOTAL DISBURSEMENTS (MOR-8) 268,775 1,452,912 879,805 141,924 --
<Caption>
MONTH JUNE JULY AUGUST SEPTEMBER
----- ---------- ---------- ---------- ---------
--
REVENUES (MOR-6) 61,510 -- -- --
INCOME BEFORE INT, DEPREC./TAX (MOR-6) 61,510 (8,977) 4,000 (8,230)
NET INCOME (LOSS) (MOR-6) -- (8,977) (231,609) (8,230)
PAYMENTS TO INSIDERS (MOR-9) -- -- -- --
PAYMENTS TO PROFESSIONALS (MOR-9) -- -- -- --
TOTAL DISBURSEMENTS (MOR-8) -- -- -- --
</Table>
*** The ORIGINAL of this document MUST BE FILED with the United States
Bankruptcy Court and a COPY MUST BE SENT to the United States Trustee ***
- --------------------------------------------------------------------------------
REQUIRED INSURANCE MAINTAINED
AS OF SIGNATURE DATE
<Table>
<Caption>
EXP.
DATE
----
CASUALTY YES (X) NO ( ) 06/30/02
LIABILITY YES (X) NO ( ) 06/30/02
VEHICLE YES (X) NO ( ) 06/30/02
WORKER'S YES (X) NO ( ) 03/27/02
OTHER - DIRECTOR/OFFICER YES (X) NO ( ) 01/23/02
</Table>
- --------------------------------------------------------------------------------
ATTORNEY NAME:
FIRM: Floyd, Isgur, Rios & Warlich, P. C.
Address: 700 Louisiana, Suite 4600
Address:
City, State, ZIP: Houston, TX 77002-2732
Telephone: 713-222-1470
Fax: 713-222-1475
- --------------------------------------------------------------------------------
<Table>
<Caption>
CIRCLE ONE
Are all accounts receivable being collected within terms? YES NO
Are all posted-petition liabilities, including taxes,
being paid within terms? YES NO
Have any pre-petition liabilities been paid? YES NO
If so, describe. PURSUANT TO COURT ORDER AUTHORIZING
PAYMENTS OF PRE-PETITION WAGES, SALARIES, COMMISSIONS AND
COMPENSATION SIGNED JANUARY 11, 2001.
Are all funds received being deposited into DIP bank accounts? YES NO
Were any assets disposed of outside the normal course of business? YES NO
If so, describe. PROPERTY, PLANT & EQUIPMENT AND OTHER ASSET
SALES MADE PURSUANT TO VARIOUS COURT ORDERS AUTHORIZING SUCH
ASSET SALES.
Are all U.S. Trustee Quarterly Fee Payments current? YES NO
What is the status of your Plan of Reorganization? PLAN OF REORGANIZATION
CONFIRMED BY COURT ON AUGUST 14, 2001. EFFECTIVE DATE OF REORGANIZATION -
OCTOBER 3, 2001.
</Table>
I certify under penalty of perjury that the
following complete Monthly Operating Report
(MOR), consisting of MOR-1 through MOR-9
plus attachments, is true and correct.
SIGNED /s/ CRAIG A. REYNOLDS
-------------------------------------
TITLE Vice President of Finance
-------------------------------------
MOR-1
CASE NAME: R-ANELL CUSTOM HOMES, INC. CASE NUMBER: 01-80038-G3-11
COMPARATIVE BALANCE SHEETS
<Table>
<Caption>
MONTH MONTH MONTH MONTH
ASSETS FILING DATE* JANUARY FEBRUARY MARCH APRIL
------ ------------ ---------- ---------- ---------- ----------
CURRENT ASSETS
Cash 1,004,349 897,793 538,859 307,839 96,525
Accounts Receivable, Net 1,636,878 1,995,224 1,404,891 -- --
Inventory: Lower of Cost or Market 1,928,362 2,628,094 -- -- --
Prepaid Expenses 44,797 52,273 -- -- --
Investments -- -- -- -- --
Other -- -- -- -- --
---------- ---------- ---------- ---------- ----------
TOTAL CURRENT ASSETS 4,614,386 5,573,385 1,943,750 307,839 96,525
========== ========== ========== ========== ==========
PROPERTY, PLANT&EQUIP, @ COST 5,189,855 5,189,855 5,189,855 -- --
Less Accumulated Depreciation 1,925,880 1,947,703 1,947,703 -- --
Less Impairment of Assets 2,937,152 -- --
---------- ---------- ---------- ---------- ----------
Net Book Value of PP & E 3,263,975 3,242,152 305,000 -- --
========== ========== ========== ========== ==========
OTHER ASSETS:
1. Tax Deposits -- -- -- -- --
2. Investments in Subs -- -- -- -- --
3. Deposits -- -- -- -- --
4. Interests in Insurance Policies -- -- -- -- --
5. Note Receivable -- -- -- -- --
6. Other Assets 2,240,878 2,505,499 2,505,499 2,505,499 2,505,499
---------- ---------- ---------- ---------- ----------
TOTAL ASSETS 10,119,240 11,321,036 4,754,249 2,813,338 2,602,024
========== ========== ========== ========== ==========
<Caption>
MONTH MONTH MONTH MONTH MONTH
ASSETS MAY JUNE JULY AUGUST SEPTEMBER
------ ---------- ---------- ---------- ---------- ----------
CURRENT ASSETS
Cash 346,525 404,825 404,825 482,955 482,955
Accounts Receivable, Net -- -- -- -- --
Inventory: Lower of Cost or Market -- -- -- -- --
Prepaid Expenses -- -- -- -- --
Investments -- -- -- -- --
Other -- -- -- -- --
---------- ---------- ---------- ---------- ----------
TOTAL CURRENT ASSETS 346,525 404,825 404,825 482,955 482,955
========== ========== ========== ========== ==========
PROPERTY, PLANT&EQUIP, @ COST -- -- -- -- --
Less Accumulated Depreciation -- -- -- -- --
Less Impairment of Assets -- -- -- -- --
---------- ---------- ---------- ---------- ----------
Net Book Value of PP & E -- -- -- -- --
========== ========== ========== ========== ==========
OTHER ASSETS:
1. Tax Deposits -- -- -- -- --
2. Investments in Subs -- -- -- -- --
3. Deposits -- -- -- -- --
4. Interests in Insurance Policies -- -- -- -- --
5. Note Receivable -- -- -- -- --
6. Other Assets -- -- -- -- --
---------- ---------- ---------- ---------- ----------
TOTAL ASSETS 346,525 404,825 404,825 482,955 482,955
========== ========== ========== ========== ==========
</Table>
* Per Schedules and Statement of Affairs
MOR-2
CASE NAME: R-ANELL CUSTOM HOMES, INC. CASE NUMBER: 01-80038-G3-11
COMPARATIVE BALANCE SHEETS
<Table>
<Caption>
LIABILITIES & OWNER'S MONTH MONTH MONTH MONTH
EQUITY FILING DATE* JANUARY FEBRUARY MARCH APRIL
- --------------------- ------------ ------------ ------------ ------------ ------------
LIABILITIES:
POST-PETITION LIABILITIES (MOR-4) 729,576 1,769,067 1,690,257 884,247
------------ ------------ ------------ ------------
PRE-PETITION LIABILITIES:
Notes Payable - Secured 314,302 314,302 314,302 11,802 11,802
Priority Debt 391,630 310,444 270,821 270,821 270,821
Federal Income Tax 2,892,863 2,892,863 2,892,863 2,892,863 2,892,863
FICA/Withholding -- -- -- -- --
Unsecured Debt 3,802,114 3,953,206 4,052,919 3,953,417 3,953,417
Intercompany 585,252 1,885,235 1,815,264 1,817,088 2,018,788
Other -- -- -- -- --
------------ ------------ ------------ ------------ ------------
TOTAL PRE-PETITION LIABILITIES 7,986,161 9,356,050 9,346,168 8,945,990 9,147,690
------------ ------------ ------------ ------------ ------------
TOTAL LIABILITIES 7,986,161 10,085,627 11,115,235 10,636,247 10,031,937
============ ============ ============ ============ ============
OWNER'S EQUITY (DEFICIT):
Preferred Stock -- --
Common Stock 200,000 200,000 200,000 200,000 200,000
ADDITIONAL PAID-IN CAPITAL -- -- -- -- --
PARTNER DISTRIBUTIONS (215,835) (215,835) (215,835) (215,835) (215,835)
RETAINED EARNINGS: Filing Date 2,148,914 2,148,914 2,148,914 2,148,914 2,148,914
RETAINED EARNINGS: Post Filing Date -- (897,670) (8,494,065) (9,955,989) (9,562,993)
------------ ------------ ------------ ------------ ------------
TOTAL OWNER'S EQUITY (NET WORTH) 2,133,079 1,235,409 (6,360,986) (7,822,910) (7,429,914)
------------ ------------ ------------ ------------ ------------
TOTAL LIABILITIES &
OWNER'S EQUITY 10,119,240 11,321,036 4,754,249 2,813,338 2,602,024
============ ============ ============ ============ ============
<Caption>
LIABILITIES & OWNER'S MONTH MONTH MONTH MONTH MONTH
EQUITY MAY JUNE JULY AUGUST SEPTEMBER
- --------------------- ------------- ------------ ------------ ------------ ------------
LIABILITIES:
POST-PETITION LIABILITIES (MOR-4) 884,497 881,288 890,264 744,785 753,015
------------ ------------ ------------ ------------ ------------
PRE-PETITION LIABILITIES:
Notes Payable - Secured -- -- -- -- --
Priority Debt 182,798 182,798 182,798 182,798 182,798
Federal Income Tax -- -- -- -- --
FICA/Withholding -- -- -- -- --
Unsecured Debt 2,042,716 2,042,716 2,042,716 2,042,716 2,042,716
Intercompany 2,018,788 2,018,788 2,018,788 2,018,788 2,018,788
Other -- -- -- -- --
------------- ------------ ------------ ------------ ------------
TOTAL PRE-PETITION LIABILITIES 4,244,303 4,244,302 4,244,303 4,244,303 4,244,303
------------- ------------ ------------ ------------ ------------
TOTAL LIABILITIES 5,128,800 5,125,590 5,134,567 4,989,088 4,997,318
============= ============ ============ ============ ============
OWNER'S EQUITY (DEFICIT):
Preferred Stock
Common Stock 200,000 200,000 200,000 200,000 200,000
ADDITIONAL PAID-IN CAPITAL -- -- -- -- --
PARTNER DISTRIBUTIONS (215,835) (215,835) (215,835) (215,835) (215,835)
RETAINED EARNINGS: Filing Date 2,148,914 2,148,914 2,148,914 2,148,914 2,148,914
RETAINED EARNINGS: Post Filing Date (6,915,354) (6,853,845) (6,861,821) (6,639,212) (6,639,212)
------------- ------------ ------------ ------------ ------------
TOTAL OWNER'S EQUITY (NET WORTH) (4,782,275) (4,720,766) (4,728,742) (4,506,133) (4,514,362)
------------- ------------ ------------ ------------ ------------
TOTAL LIABILITIES &
OWNER'S EQUITY 346,525 404,825 405,825 482,955 482,955
============= ============ ============ ============ ============
</Table>
* Per Schedules and Statement of Affairs
MOR-3
CASE NAME: R-ANELL CUSTOM HOMES, INC. CASE NUMBER: 01-80038-G3-11
SCHEDULE OF POST-PETITION LIABILITIES
<Table>
<Caption>
MONTH MONTH MONTH MONTH MONTH
JANUARY FEBRUARY MARCH APRIL MAY
---------- ---------- ---------- ---------- ----------
TRADE ACCOUNTS PAYABLE 403,561 578,193 152,031 91,179 91,179
---------- ---------- ---------- ---------- ----------
TAX PAYABLE
Federal Payroll Taxes 22,197 86,944 143,668 -- --
State Payroll & Sales 7,427 8,202 (21,335) -- --
Ad Valorem Taxes -- -- -- -- --
Other Taxes -- -- -- -- --
---------- ---------- ---------- ---------- ----------
TOTAL TAXES PAYABLE 29,624 95,146 122,333 -- --
========== ========== ========== ========== ==========
SECURED DEBT POST-PETITION -- -- -- -- --
ACCRUED INTEREST PAYABLE 995 995 995 -- --
* ACCRUED PROFESSIONAL FEES -- -- -- -- --
OTHER ACCRUED LIABILITIES:
1. State Association Fees 270 990 164 -- --
2. Bonus 2,702 2,702 2,702 -- --
3. Sales Commissions 1,155 (15,397) (15,397) -- --
4. Volume Rebate (2,396) (2,396) -- -- --
5. Dealer Freight 13,263 52,001 23,391 -- --
6. Intercompany 280,403 1,056,834 1,404,039 793,069 793,319
---------- ---------- ---------- ---------- ----------
TOTAL POST-PETITION LIABILITIES (MOR-3) 729,576 1,769,067 1,690,257 884,247 884,497
========== ========== ========== ========== ==========
<Caption>
MONTH MONTH MONTH MONTH
JUNE JULY AUGUST SEPTEMBER
---------- ---------- ---------- ----------
TRADE ACCOUNTS PAYABLE 149,480 149,479 -- --
---------- ---------- ---------- ----------
TAX PAYABLE
Federal Payroll Taxes -- -- -- --
State Payroll & Sales -- -- -- --
Ad Valorem Taxes -- -- -- --
Other Taxes -- -- -- --
---------- ---------- ---------- ----------
TOTAL TAXES PAYABLE -- -- -- --
========== ========== ========== ==========
SECURED DEBT POST-PETITION -- -- -- --
ACCRUED INTEREST PAYABLE -- -- -- --
* ACCRUED PROFESSIONAL FEES -- -- -- --
OTHER ACCRUED LIABILITIES:
1. State Association Fees -- -- -- --
2. Bonus -- -- -- --
3. Sales Commissions -- -- -- --
4. Volume Rebate -- -- -- --
5. Dealer Freight -- -- -- --
6. Intercompany 731,809 740,785 744,785 753,015
---------- ---------- ---------- ----------
TOTAL POST-PETITION LIABILITIES (MOR-3) 881,288 890,264 744,785 753,015
========== ========== ========== ==========
</Table>
* Payment Requires Court Approval.
MOR-4
CASE NAME: R-ANELL CUSTOM HOMES, INC. CASE NUMBER: 01-80038-G3-11
AGING OF POST-PETITION LIABILITIES
MONTH OF SEPTEMBER 2001
<Table>
<Caption>
AD-VALOREM,
DAYS TOTAL TRADE ACCTS FED TAXES STATE TAXES OTHER TAXES OTHER
---- -------------- -------------- -------------- -------------- -------------- --------------
0-30 753,015 -- -- -- -- 753,015
31-60 --
61-90 --
91 + --
TOTAL 753,015 -- -- -- -- 753,015
</Table>
AGING OF ACCOUNTS RECEIVABLE
<Table>
<Caption>
MONTH JANUARY FEBRUARY MARCH APRIL MAY JUNE
----- ---------- ---------- ---------- ---------- ---------- ----------
0-30 DAYS -- -- -- -- -- --
31-60 DAYS -- -- -- -- -- --
61-90 DAYS -- -- -- -- -- --
91 + DAYS 1,995,224 1,404,891 -- -- -- --
TOTAL 1,995,224 1,404,891 -- -- -- --
<Caption>
MONTH JULY AUGUST SEPTEMBER
----- ---------- ---------- ----------
0-30 DAYS -- -- --
31-60 DAYS -- -- --
61-90 DAYS -- -- --
91 + DAYS -- -- --
TOTAL -- -- --
</Table>
MOR-5
CASE NAME: R-ANELL CUSTOM HOMES, INC. CASE NUMBER: 01-80038-G3-11
STATEMENT OF INCOME (LOSS)
<Table>
<Caption>
MONTH JANUARY FEBRUARY MARCH APRIL MAY
----- ---------- ---------- ---------- ---------- ----------
REVENUES (MOR-1) 495,641 1,973,058 285 -- --
TOTAL COST OF REVENUES 1,464,851 1,483,554 69,845 -- --
GROSS PROFIT (969,210) 489,504 (69,560) -- --
OPERATING EXPENSES:
Selling & Marketing (19,142) 35,246 84,743 -- --
General & Administrative 25,507 12,789 17,077 (160,262) --
Insiders Compensation 14,405 17,083 13,968 -- --
Professional Fees -- -- -- -- --
Impairment of Assets -- 8,020,780 1,276,576 -- (2,647,639)
Other (attach list) -- -- -- (232,734) --
---------- ---------- ---------- ---------- ----------
TOTAL OPERATING EXPENSES 20,770 8,085,899 1,392,364 (392,996) (2,647,639)
========== ========== ========== ========== ==========
INCOME BEFORE INT, DEPR/TAX (MOR-1) (989,980) (7,596,395) (1,461,924) 392,996 2,647,639
========== ========== ========== ========== ==========
INTEREST EXPENSE 36,642 -- -- -- --
DEPRECIATION 18,653 -- -- -- --
OTHER (INCOME) EXPENSE * (147,604) -- -- --
OTHER ITEMS ** -- -- -- -- --
---------- ---------- ---------- ---------- ----------
TOTAL INT, DEPR & OTHER ITEMS (92,310) -- -- -- --
---------- ---------- ---------- ---------- ----------
NET INCOME BEFORE TAXES (897,670) (7,596,395) (1,461,924) 392,996 2,647,639
========== ========== ========== ========== ==========
FEDERAL INCOME TAXES -- -- -- -- --
---------- ---------- ---------- ---------- ----------
NET INCOME (LOSS) (MOR-1) (897,670) (7,596,395) (1,461,924) 392,996 2,647,639
========== ========== ========== ========== ==========
<Caption>
MONTH JUNE JULY AUGUST SEPTEMBER FILING TO DATE
----- ---------- ---------- ---------- -------------- --------------
REVENUES (MOR-1) -- -- -- -- --
TOTAL COST OF REVENUES -- -- (4,000) -- (16,000)
GROSS PROFIT -- -- 4,000 -- 16,000
OPERATING EXPENSES:
Selling & Marketing -- -- -- -- --
General & Administrative -- -- -- 8,230 8,230
Insiders Compensation -- -- -- -- --
Professional Fees -- -- -- -- --
Impairment of Assets (61,510) -- -- -- (61,510)
Other (attach list) 8,977 -- -- 8,977
---------- ---------- ---------- -------------- ----------
TOTAL OPERATING EXPENSES (61,510) 8,977 -- 8,230 (44,304)
========== ========== ========== ============== ==========
INCOME BEFORE INT, DEPR/TAX (MOR-1) 61,510 (8,977) 4,000 (8,230) 60,304
========== ========== ========== ============== ==========
INTEREST EXPENSE -- -- -- -- --
DEPRECIATION -- -- -- -- --
OTHER (INCOME) EXPENSE * -- -- (227,609) -- (910,436)
OTHER ITEMS ** -- -- -- -- --
---------- ---------- ---------- -------------- ----------
TOTAL INT, DEPR & OTHER ITEMS -- -- (227,609) -- (910,436)
---------- ---------- ---------- -------------- ----------
NET INCOME BEFORE TAXES 61,510 (8,977) 231,609 (8,230) 970,740
========== ========== ========== ============== ==========
FEDERAL INCOME TAXES -- -- -- -- --
---------- ---------- ---------- -------------- ----------
NET INCOME (LOSS) (MOR-1) 61,510 (8,977) 231,609 (8,230) 970,740
========== ========== ========== ============== ==========
</Table>
Accrual Accounting Required, Otherwise Footnote With Explanation
* Footnote Mandatory
** Unusual and/or infrequent item(s) outside the ordinary course of business;
requires footnote
MOR-6
CASE NAME: R-ANELL CUSTOM HOMES, INC. CASE NUMBER: 01-80038-G3-11
<Table>
<Caption>
MONTH MONTH MONTH MONTH MONTH
CASH RECEIPTS AND DISBURSEMENTS JANUARY FEBRUARY MARCH APRIL MAY
- ------------------------------- ---------- ---------- ---------- ---------- ----------
1. CASH - BEGINNING OF MONTH 1,004,349 897,794 538,858 307,839 96,525
RECEIPTS:
2. CASH SALES 284,575 1,793,946 634,938 39,819 --
3. COLLECTION OF ACCOUNTS RECEIVABLE -- -- -- --
4. LOANS & ADVANCES (ATTACH LIST) -- -- --
5. SALE OF ASSETS -- 1,000 -- 250,000
6. INTERCOMPANY -- 12,848 -- --
---------- ---------- ---------- ---------- ----------
TOTAL RECEIPTS 284,575 1,793,946 648,786 39,819 250,000
========== ========== ========== ========== ==========
(Withdrawal) Contribution by Individual Debtor MFR-2*
DISBURSEMENTS:
7. NET PAYROLL 99,250
8. PAYROLL TAXES PAID --
9. SALES, USE & OTHER TAXES PAID --
10. SECURED / RENTAL / LEASES 169,512
11. UTILITIES --
12. INSURANCE -- 561,003
13. INVENTORY PURCHASES -- 871,892 879,805
14. VEHICLE EXPENSES --
15. TRAVEL ENTERTAINMENT --
16. REPAIRS, MAINTENANCE & SUPPLIES --
17. ADMINISTRATIVE & SELLING 13 20,018
18. INTERCOMPANY 122,356 699,968 -- 109,209
19. OTHER (ATTACH LIST) -- 141,924
---------- ---------- ---------- ---------- ----------
TOTAL DISBURSEMENTS FROM OPERATIONS 391,131 2,152,881 879,805 251,133 --
========== ========== ========== ========== ==========
20. PROFESSIONAL FEES -- -- --
21. U.S. TRUSTEE FEES -- -- --
22. OTHER REORGANIZATION EXPENSES (ATTACH LIST) -- -- --
---------- ---------- ---------- ---------- ----------
TOTAL DISBURSEMENTS 391,131 2,152,881 879,805 251,133 --
========== ========== ========== ========== ==========
23. NET CASH FLOW (106,556) (358,935) (231,019) (211,314) 250,000
---------- ---------- ---------- ---------- ----------
24. CASH - END OF MONTH (MOR-2) 897,794 538,859 307,839 96,525 346,525
========== ========== ========== ========== ==========
<Caption>
MONTH MONTH MONTH MONTH FILING TO
CASH RECEIPTS AND DISBURSEMENTS JUNE JULY AUGUST SEPTEMBER DATE
- ------------------------------- ---------- ---------- ---------- ---------- ----------
1. CASH - BEGINNING OF MONTH 346,525 404,825 404,825 482,955 346,525
RECEIPTS:
2. CASH SALES -- -- -- -- --
3. COLLECTION OF ACCOUNTS RECEIVABLE 58,300 58,300
4. LOANS & ADVANCES (ATTACH LIST) -- -- -- -- --
5. SALE OF ASSETS -- -- -- -- --
6. INTERCOMPANY -- -- -- -- --
---------- ---------- ---------- ---------- ----------
TOTAL RECEIPTS 58,300 -- -- -- 58,300
========== ========== ========== ========== ==========
(Withdrawal) Contribution by Individual Debtor MFR-2*
DISBURSEMENTS:
7. NET PAYROLL -- --
8. PAYROLL TAXES PAID -- --
9. SALES, USE & OTHER TAXES PAID -- --
10. SECURED / RENTAL / LEASES -- --
11. UTILITIES -- --
12. INSURANCE -- --
13. INVENTORY PURCHASES -- --
14. VEHICLE EXPENSES -- --
15. TRAVEL ENTERTAINMENT -- --
16. REPAIRS, MAINTENANCE & SUPPLIES -- --
17. ADMINISTRATIVE & SELLING -- --
18. INTERCOMPANY (78,131) -- (78,131)
19. OTHER (ATTACH LIST) -- --
---------- ---------- ---------- ---------- ----------
TOTAL DISBURSEMENTS FROM OPERATIONS -- -- (78,131) -- (78,131)
========== ========== ========== ========== ==========
20. PROFESSIONAL FEES -- -- -- -- --
21. U.S. TRUSTEE FEES -- -- -- -- --
22. OTHER REORGANIZATION EXPENSES (ATTACH LIST) -- -- -- -- --
---------- ---------- ---------- ---------- ----------
TOTAL DISBURSEMENTS -- -- (78,131) -- (78,131)
========== ========== ========== ========== ==========
23. NET CASH FLOW 58,300 -- 78,131 -- 136,431
---------- ---------- ---------- ---------- ----------
24. CASH - END OF MONTH (MOR-2) 404,825 404,825 482,955 482,955 482,955
========== ========== ========== ========== ==========
</Table>
* applies to Individual debtor's only.
MOR-7
CASE NAME: R-ANELL CUSTOM HOMES, INC. CASE NUMBER: 01-80038-G3-11
CASH ACCOUNT RECONCILIATION
MONTH OF SEPTEMBER 2001
<Table>
<Caption>
BANK NAME Bank of America Bank of America BB&T
- --------- --------------- --------------- --------------
ACCOUNT NUMBER # 3755500043
ACCOUNT TYPE OPERATING CASH COLLATERAL
-------------- --------------- --------------
BANK BALANCE 232,955 250,000 --
DEPOSIT IN TRANSIT -- -- --
OUTSTANDING CHECKS -- -- --
-------------- -------------- --------------
ADJUSTED BANK BALANCE 232,955 250,000 --
============== ============== ==============
BEGINNING CASH - PER BOOKS 232,955 250,000
RECEIPTS -- -- --
TRANSFERS BETWEEN ACCOUNTS -- --
(WITHDRAWAL) CONTRIBUTION - BY INDIVIDUAL DEBTOR MFR-2 -- -- --
CHECKS / OTHER DISBURSEMENTS -- -- --
-------------- -------------- --------------
ENDING CASH - PER BOOKS 232,955 250,000 --
============== ============== ==============
<Caption>
BANK NAME Petty Cash
- --------- --------------
ACCOUNT NUMBER
ACCOUNT TYPE TOTAL ALL
-------------- --------------
BANK BALANCE -- 482,955
DEPOSIT IN TRANSIT -- --
OUTSTANDING CHECKS -- --
-------------- --------------
ADJUSTED BANK BALANCE -- 482,955
============== ==============
BEGINNING CASH - PER BOOKS 482,955
RECEIPTS -- --
TRANSFERS BETWEEN ACCOUNTS --
(WITHDRAWAL) CONTRIBUTION - BY INDIVIDUAL DEBTOR MFR-2 -- --
CHECKS / OTHER DISBURSEMENTS -- --
-------------- --------------
ENDING CASH - PER BOOKS -- 482,955
============== ==============
</Table>
MOR-8
CASE NAME: R-ANELL CUSTOM HOMES, INC. CASE NUMBER: 01-80038-G3-11
PAYMENTS TO INSIDERS AND PROFESSIONALS
OF THE TOTAL DISBURSEMENTS SHOWN FOR THE MONTH, LIST THE AMOUNT PAID TO INSIDERS
(AS DEFINED IN SECTION 101(30)(A)-(F) OF THE U. S. BANKRUPTCY CODE) AND THE
PROFESSIONALS. ALSO, FOR INSIDERS IDENTIFY THE TYPE OF COMPENSATION PAID (E.G.,
SALARY, COMMISSION, BONUS, ETC.) (ATTACH ADDITIONAL PAGES AS NECESSARY).
<Table>
<Caption>
MONTH MONTH MONTH MONTH MONTH
INSIDERS: NAME/POSITION/COMP TYPE JANUARY FEBRUARY MARCH APRIL MAY
- --------------------------------- ---------- ---------- ---------- ---------- ----------
1. Dennis L. Jones/President 6,983 9,311 9,311 -- --
2. Ronald McCaslin/Vice President, Director -- -- -- -- --
3. Jackie Holland/Vice President -- -- -- -- --
4. Craig A. Reynolds/VP, Secretary, Treasurer, Director -- -- -- -- --
5. Kristi E. Gross/Assistant Secretary -- -- -- -- --
6. Steve Purdy/Assistant Secretary 7,422 7,772 4,657 -- --
---------- ---------- ---------- ---------- ----------
TOTAL INSIDERS (MOR-1) 14,405 17,083 13,968 -- --
========== ========== ========== ========== ==========
<Caption>
MONTH MONTH MONTH MONTH
INSIDERS: NAME/POSITION/COMP TYPE JUNE JULY AUGUST SEPTEMBER
- --------------------------------- ---------- ---------- ---------- ----------
1. Dennis L. Jones/President -- -- -- --
2. Ronald McCaslin/Vice President, Director -- -- -- --
3. Jackie Holland/Vice President -- -- -- --
4. Craig A. Reynolds/VP, Secretary, Treasurer, Director -- -- -- --
5. Kristi E. Gross/Assistant Secretary -- -- -- --
6. Steve Purdy/Assistant Secretary -- -- -- --
---------- ---------- ---------- ----------
TOTAL INSIDERS (MOR-1) -- -- -- --
========== ========== ========== ==========
</Table>
<Table>
<Caption>
MONTH MONTH MONTH MONTH MONTH
PROFESSIONALS/NAME/ORDER DATE JANUARY FEBRUARY MARCH APRIL MAY
- ----------------------------- ---------- ---------- ---------- ---------- ----------
1. -- -- -- -- --
2. -- -- -- -- --
3. -- -- -- -- --
4. -- -- -- -- --
5. -- -- -- -- --
6. -- -- -- -- --
---------- ---------- ---------- ---------- ----------
TOTAL PROFESSIONALS (MOR-1) -- -- -- -- --
========== ========== ========== ========== ==========
<Caption>
MONTH MONTH MONTH MONTH
PROFESSIONALS/NAME/ORDER DATE JUNE JULY AUGUST SEPTEMBER
- ----------------------------- ---------- ---------- ---------- ----------
1. -- -- -- --
2. -- -- -- --
3. -- -- -- --
4. -- -- -- --
5. -- -- -- --
6. -- -- -- --
---------- ---------- ---------- ----------
TOTAL PROFESSIONALS (MOR-1) -- -- -- --
========== ========== ========== ==========
</Table>
MOR-9