EXHIBIT 99.1
CASE NAME: KEVCO, INC. ACCRUAL BASIS
CASE NUMBER: 401-40783-BJH-11
JUDGE: BARBARA J. HOUSER
UNITED STATES BANKRUPTCY COURT
NORTHERN DISTRICT OF TEXAS
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FORT WORTH DIVISION
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MONTHLY OPERATING REPORT
MONTH ENDING: MARCH 31, 2002
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IN ACCORDANCE WITH TITLE 28, SECTION 1746, OF THE UNITED STATES CODE, I DECLARE
UNDER PENALTY OF PERJURY THAT I HAVE EXAMINED THE FOLLOWING MONTHLY OPERATING
REPORT (ACCRUAL BASIS - 1 THROUGH ACCRUAL BASIS - 7) AND THE ACCOMPANYING
ATTACHMENTS AND, TO THE BEST OF MY KNOWLEDGE, THESE DOCUMENTS ARE TRUE, CORRECT
AND COMPLETE. DECLARATION OF THE PREPARER (OTHER THAN RESPONSIBLE PARTY): IS
BASED ON ALL INFORMATION OF WHICH PREPARER HAS ANY KNOWLEDGE.
RESPONSIBLE PARTY:
EXECUTIVE VICE PRESIDENT AND
/s/ WILFORD W. SIMPSON CHIEF FINANCIAL OFFICER
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Original Signature of Responsible Party Title
WILFORD W. SIMPSON APRIL 22, 2002
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Printed Name of Responsible Party Date
PREPARER:
/s/ DENNIS S. FAULKNER ACCOUNTANT FOR DEBTOR
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Original Signature of Preparer Title
DENNIS S. FAULKNER APRIL 22, 2002
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Printed Name of Preparer Date
CASE NAME: KEVCO, INC. ACCRUAL BASIS - 1
CASE NUMBER: 401-40783-BJH-11
COMPARATIVE BALANCE SHEET
SCHEDULED MONTH MONTH MONTH
ASSETS AMOUNT JAN-02 FEB-02 MAR-02
- ----- ----------- ----------- ----------- -----------
1. Unrestricted Cash (FOOTNOTE) 1,000 1,000 1,000 0
2. Restricted Cash
3. Total Cash 1,000 1,000 1,000 0
4. Accounts Receivable (Net)
5. Inventory
6. Notes Receivable
7. Prepaid Expenses
8. Other (Attach List) 459,000 0 0 0
9. Total Current Assets 460,000 1,000 1,000 0
10. Property, Plant & Equipment
11. Less: Accumulated Depreciation/Depletion
12. Net Property, Plant & Equipment
13. Due From Insiders
14. Other Assets - Net of Amortization (Attach List) 4,790,071 6,801,458 6,801,458 6,801,458
15. Other (Attach List) 613,299,110 310,687,331 310,687,331 310,687,331
16. Total Assets 618,549,181 317,489,789 317,489,789 317,488,789
POST PETITION LIABILITIES
17. Accounts Payable
18. Taxes Payable
19. Notes Payable
20. Professional Fees
21. Secured Debt
22. Other (Attach List) 78,485,673 79,607,252 80,847,998
23. Total Post Petition Liabilities 78,485,673 79,607,252 80,847,998
PRE PETITION LIABILITIES
24. Secured Debt (FOOTNOTE) 75,885,064 13,509,318 13,590,741 13,680,889
25. Priority Debt
26. Unsecured Debt
27. Other (Attach List) 136,505,780 141,833,049 141,833,049 141,833,049
28. Total Pre Petition Liabilities 212,390,844 155,342,367 155,423,790 155,513,938
29. Total Liabilities 212,390,844 233,828,040 235,031,042 236,361,936
EQUITY
30. Pre Petition Owners' Equity 406,158,337 406,158,337 406,158,337
31. Post Petition Cumulative Profit Or (Loss) (10,364,925) (11,567,927) (12,899,821)
32. Direct Charges To Equity (Attach Explanation) (FOOTNOTE) (312,131,663) (312,131,663) (312,131,663)
33. Total Equity 83,661,749 82,458,747 81,126,853
34. Total Liabilities and Equity 317,489,789 317,489,789 317,488,789
This form x does does not have related footnotes on Footnotes Supplement.
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CASE NAME: KEVCO, INC. SUPPLEMENT TO
CASE NUMBER: 401-40783-BJH-11 ACCRUAL BASIS - 1
COMPARATIVE BALANCE SHEET
SCHEDULED MONTH MONTH MONTH
ASSETS AMOUNT JAN-02 FEB-02 MAR-02
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A. Prepaid Escrowed Retention Pmts. 459,000
B.
C.
D.
E.
TOTAL OTHER ASSETS - LINE 8 459,000
A. Capitalized loan costs 4,790,071 4,297,973 4,297,973 4,297,973
B. Investment in Subsidiaries 2,503,485 2,503,485 2,503,485
C.
D.
E.
TOTAL OTHER ASSETS NET OF AMORTIZATION - LINE 14 4,790,071 6,801,458 6,801,458 6,801,458
A. Intercompany Receivables (FOOTNOTE) 306,649,555
B. Interco. Promissory Note (FOOTNOTE) 235,981,314 235,981,314 235,981,314 235,981,314
C. Interco. Royalties (FOOTNOTE) 70,668,241 74,706,017 74,706,017 74,706,017
D.
E.
TOTAL OTHER ASSETS - LINE 15 613,299,110 310,687,331 310,687,331 310,687,331
POST PETITION LIABILITIES
A. Interco. Payables (FOOTNOTE) 62,980,907 62,980,907 62,979,907
B. Accrued Interest on Notes/Bonds 15,504,766 16,626,345 17,868,091
C.
D.
E.
TOTAL OTHER POST PETITION LIABILITIES - LINE 22 78,485,673 79,607,252 80,847,998
PRE PETITION LIABILITIES
A. Interco. Liabilities (FOOTNOTE) 8,005,780 8,005,780 8,005,780 8,005,780
B. 10 3/8% Sr. Sub. Notes 105,000,000 105,000,000 105,000,000 105,000,000
C. Senior Sub. Exchangeable Notes 23,500,000 23,500,000 23,500,000 23,500,000
D. Accrued Interest on Notes/Bonds 5,327,269 5,327,269 5,327,269
E.
TOTAL OTHER PRE PETITION LIABILITIES - LINE 27 136,505,780 141,833,049 141,833,049 141,833,049
CASE NAME: KEVCO, INC. ACCRUAL BASIS - 2
CASE NUMBER: 401-40783-BJH-11
INCOME STATEMENT
MONTH MONTH MONTH QUARTER
REVENUES JAN-02 FEB-02 MAR-02 TOTAL
- -------- ---------- ---------- ---------- ----------
1. Gross Revenues
2. Less: Returns & Discounts
3. Net Revenue
COST OF GOODS SOLD
4. Material
5. Direct Labor
6. Direct Overhead
7. Total Cost Of Goods Sold
8. Gross Profit
OPERATING EXPENSES
9. Officer / Insider Compensation
10. Selling & Marketing
11. General & Administrative
12. Rent & Lease
13. Other (Attach List)
14. Total Operating Expenses
15. Income Before Non-Operating
Income & Expense
OTHER INCOME & EXPENSES
16. Non-Operating Income (Att List)
17. Non-Operating Expense (Att List)
18. Interest Expense 1,322,406 1,203,002 1,331,895 3,857,303
19. Depreciation / Depletion
20. Amortization
21. Other (Attach List)
22. Net Other Income & Expenses (1,322,406) (1,203,002) (1,331,895) (3,857,303)
REORGANIZATION EXPENSES
23. Professional Fees
24. U.S. Trustee Fees
25. Other (Attach List)
26. Total Reorganization Expenses
27. Income Tax
28. Net Profit (Loss) (1,322,406) (1,203,002) (1,331,895) (3,857,303)
This form does x does not have related footnotes on Footnotes Supplement.
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CASE NAME: KEVCO, INC. ACCRUAL BASIS - 3
CASE NUMBER: 401-40783-BJH-11
CASH RECEIPTS AND MONTH MONTH MONTH QUARTER
DISBURSEMENTS JAN-02 FEB-02 MAR-02 TOTAL
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1. Cash - Beginning Of Month SEE ATTACHED SUPPLEMENT AND FOOTNOTE
RECEIPTS FROM OPERATIONS
2. Cash Sales
COLLECTION OF ACCOUNTS RECEIVABLE
3. Pre Petition
4. Post Petition
5. Total Operating Receipts
NON-OPERATING RECEIPTS
6. Loans & Advances (Attach List)
7. Sale of Assets
8. Other (Attach List)
9. Total Non-Operating Receipts
10. Total Receipts
11. Total Cash Available
OPERATING DISBURSEMENTS
12. Net Payroll
13. Payroll Taxes Paid
14. Sales, Use & Other Taxes Paid
15. Secured / Rental / Leases
16. Utilities
17. Insurance
18. Inventory Purchases
19. Vehicle Expenses
20. Travel
21. Entertainment
22. Repairs & Maintenance
23. Supplies
24. Advertising
25. Other (Attach List)
26. Total Operating Disbursements
REORGANIZATION DISBURSEMENTS
27. Professional Fees
28. U.S. Trustee Fees
29. Other (Attach List)
30. Total Reorganization Expenses
31. Total Disbursements
32. Net Cash Flow
33. Cash - End of Month
This form x does does not have related footnotes on Footnotes Supplement.
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CASE NAME: KEVCO, INC. SUPPLEMENT TO ACCRUAL BASIS -3
FEBRUARY, 2002
CASE NUMBER: 401-40783-BJH-11 CASH RECEIPTS AND DISBURSEMENTS
DIST LP MFG MGMT HOLDING COMP KEVCO INC TOTAL
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1 CASH-BEGINNING OF MONTH -- 151,415 3,006,125 -- -- 1,000 3,158,540
RECEIPTS FROM OPERATIONS
2 CASH SALES -- -- --
COLLECTION OF ACCOUNTS RECEIVABLE
3 PRE PETITION -- -- --
4 POST PETITION -- --
5 TOTAL OPERATING RECEIPTS -- -- -- -- -- -- --
NON OPERATING RECEIPTS
6 LOANS & ADVANCES -- --
7 SALE OF ASSETS -- --
8 OTHER -- 10,441 55,971 -- -- -- 66,412
INTERCOMPANY TRANSFERS 2,315 4,304 (6,619) -- --
SALE EXPENSE REIMBURSEMENT
INCOME TAX REFUND
RENT
PAYROLL TAX ADVANCE RETURNED 50,183
MISC. 1,820 --
INTEREST INCOME 3,968
9 TOTAL NON OPERATING RECEIPTS 2,315 14,745 49,352 -- -- -- 66,412
10 TOTAL RECEIPTS 2,315 14,745 49,352 -- -- -- 66,412
11 CASH AVAILABLE 2,315 166,160 3,055,477 -- -- 1,000 3,224,952
OPERATING DISBURSEMENTS
12 NET PAYROLL 33,962 33,962
13 PAYROLL TAXES PAID -- 6,934 6,934
14 SALES, USE & OTHER TAXES PAID -- --
15 SECURED/RENTAL/LEASES -- 6,834 6,834
16 UTILITIES -- 170 170
17 INSURANCE -- 11,271 11,271
18 INVENTORY PURCHASES -- --
19 VEHICLE EXPENSE -- --
20 TRAVEL -- --
21 ENTERTAINMENT -- --
22 REPAIRS & MAINTENANCE -- --
23 SUPPLIES -- --
24 ADVERTISING --
25 OTHER 2,315 45,167 6,957 -- -- -- 54,439
LOAN PAYMENTS -- -- --
FREIGHT -- --
CONTRACT LABOR -- 563 563
401 K PAYMENTS -- --
PAYROLL TAX ADVANCE ADP --
WAGE GARNISHMENTS --
MISC. 2,315 45,167 6,394 53,876
26 TOTAL OPERATING DISBURSEMENTS 2,315 45,167 66,128 -- -- -- 113,610
REORGANIZATION DISBURSEMENTS
27 PROFESSIONAL FEES -- 30,567 30,567
28 US TRUSTEE FEES -- --
29 OTHER --
30 TOTAL REORGANIZATION EXPENSE -- -- 30,567 -- -- -- 30,567
31 TOTAL DISBURSEMENTS 2,315 45,167 96,695 -- -- -- 144,177
32 NET CASH FLOW -- (30,422) (47,343) -- -- -- (77,765)
33 CASH-END OF MONTH -- 120,993 2,958,782 -- -- 1,000 3,080,775
CASE NAME: KEVCO, INC. ACCRUAL BASIS - 4
CASE NUMBER: 401-40783-BJH-11
SCHEDULED MONTH MONTH MONTH
ACCOUNTS RECEIVABLE AGING AMOUNT JAN-02 FEB-02 MAR-02
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1. 0 - 30
2. 31 - 60
3. 61 - 90
4. 91 +
5. Total Accounts Receivable
6. (Amount Considered Uncollectible)
7. Accounts Receivable (Net) 0 0 0
AGING OF POST PETITION MONTH: MARCH-02
TAXES AND PAYABLES --------
0 - 30 31 - 60 61 - 90 91 +
TAXES PAYABLE DAYS DAYS DAYS DAYS TOTAL
- ------------- ------ ------- ------- ----- -----
1. Federal
2. State
3. Local
4. Other (Attach List)
5. Total Taxes Payable 0
6. Accounts Payable 0
STATUS OF POST PETITION TAXES MONTH: MARCH-02
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FEDERAL BEGINNING TAX AMOUNT WITHHELD ENDING TAX
LIABILITY * AND/OR ACCRUED (AMOUNT PAID) LIABILITY
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1. Withholding **
2. FICA - Employee **
3. FICA - Employer **
4. Unemployment
5. Income
6. Other (Attach List)
7. Total Federal Taxes 0
STATE AND LOCAL
8. Withholding
9. Sales
10. Excise
11. Unemployment
12. Real Property
13. Personal Property
14. Other (Attach List)
15. Total State And Local 0
16. Total Taxes 0
* The beginning tax liability should represent the liability from the prior
month or, if this is the first operating report, the amount should be
zero.
** Attach photocopies of IRS Form 6123 or your FTD coupon and payment receipt
to verify payment of deposit.
This form does x does not have related footnotes on Footnotes Supplement.
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CASE NAME: KEVCO, INC. ACCRUAL BASIS - 5
CASE NUMBER: 401-40783-BJH-11
The debtor in possession must complete the reconciliation below for each bank
account, including all general, payroll and tax accounts, as well as all savings
and investment accounts, money market accounts, certificates of deposit,
government obligations, etc. Accounts with restricted funds should be identified
by placing an asterisk next to the account number. Attach additional sheets if
necessary.
MONTH: MARCH-02
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BANK RECONCILIATIONS Account # 1 Account # 2
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A. BANK: Bank of America Other Accounts
B. ACCOUNT NUMBER: 3750768521 (Attach List) TOTAL
C. PURPOSE (TYPE): DIP Account
1. Balance Per Bank Statement
2. Add: Total Deposits Not Credited
3. Subtract: Outstanding Checks
4. Other Reconciling Items
5. Month End Balance Per Books
6. Number of Last Check Written N/A
INVESTMENT ACCOUNTS
DATE TYPE OF
BANK, ACCOUNT NAME & NUMBER OF PURCHASE INSTRUMENT PURCHASE PRICE CURRENT VALUE
- --------------------------- ----------- ---------- -------------- -------------
7.
8.
9.
10.(Attach List)
11.Total Investments 0
CASH
12.Currency On Hand 0
13.Total Cash - End of Month 0
This form does x does not have related footnotes on Footnotes Supplement.
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CASE NAME: KEVCO, INC. ACCRUAL BASIS - 6
CASE NUMBER: 401-40783-BJH-11
MONTH: MARCH-02
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PAYMENTS TO INSIDERS AND PROFESSIONALS
Of the Total Disbursements shown for the month, list the amount paid to Insiders
(as defined in Section 101 (31) (A) - (F) of the U.S. Bankruptcy Code) and to
Professionals. Also, for payments to Insiders, identify the type of compensation
paid (e.g. salary, bonus, commissions, insurance, housing allowance, travel, car
allowance, etc.). Attach additional sheets if necessary.
INSIDERS
TYPE OF AMOUNT TOTAL PAID
NAME PAYMENT PAID TO DATE
---- ------- ---- -------
1.
2.
3.
4.
5. (Attach List)
6. Total Payments To Insiders
PROFESSIONALS
DATE OF
COURT ORDER TOTAL
AUTHORIZING AMOUNT AMOUNT TOTAL PAID INCURRED
NAME PAYMENT APPROVED PAID TO DATE & UNPAID *
---- ----------- -------- ------- ---------- ----------
1.
2.
3.
4.
5. (Attach List)
6. Total Payments To Professionals
* Include all fees incurred, both approved and unapproved
POST PETITION STATUS OF SECURED NOTES, LEASES PAYABLE AND ADEQUATE
PROTECTION PAYMENTS
SCHEDULED AMOUNTS TOTAL
MONTHLY PAID UNPAID
PAYMENTS DURING POST
NAME OF CREDITOR DUE MONTH PETITION
---------------- --------- ------ ----------
1. Bank of America 13,680,889
2.
3.
4.
5. (Attach List)
6. TOTAL 13,680,889
This form does x does not have related footnotes on Footnotes Supplement.
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CASE NAME: KEVCO, INC. ACCRUAL BASIS - 7
CASE NUMBER: 401-40783-BJH-11
MONTH: MARCH-02
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QUESTIONNAIRE
YES NO
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1. Have any Assets been sold or transferred outside the normal course of business this reporting period? X
2. Have any funds been disbursed from any account other than a debtor in possession account? X
3. Are any Post Petition Receivables (accounts, notes, or loans) due from related parties? X
4. Have any payments been made on Pre Petition Liabilities this reporting period? X
5. Have any Post Petition Loans been received by the debtor from any party? X
6. Are any Post Petition Payroll Taxes past due? X
7. Are any Post Petition State or Federal Income Taxes past due? X
8. Are any Post Petition Real Estate Taxes past due? X
9. Are any other Post Petition Taxes past due? X
10. Are any amounts owed to Post Petition creditors delinquent? X
11. Have any Pre Petition Taxes been paid during the reporting period? X
12. Are any wage payments past due? X
If the answer to any of the above questions is "Yes", provide a detailed
explanation of each item. Attach additional sheets if necessary.
SEE FOOTNOTE
INSURANCE
YES NO
1. Are Worker's Compensation, General Liability and other necessary insurance coverages in effect? X
2. Are all premium payments paid current? X
3. Please itemize policies below.
If the answer to any of the above questions is "No", or if any policies have
been canceled or not renewed during this reporting period, provide an
explanation below. Attach additional sheets if necessary.
INSTALLMENT PAYMENTS
TYPE OF POLICY CARRIER PERIOD COVERED PAYMENT AMOUNT & FREQUENCY
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General Liability Aon Risk Services 3/1/02-9/1/02 Semi-Annual $98,598
D&O Liability Great American Insurance 11/1/2001-10/31/2004 Annual $64,657
This form x does does not have related footnotes on Footnotes Supplement.
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CASE NAME: KEVCO, INC. FOOTNOTES SUPPLEMENT
CASE NUMBER: 401-40783-BJH-11 ACCRUAL BASIS
MONTH: MARCH-02
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ACCRUAL
BASIS
FORM
NUMBER LINE NUMBER FOOTNOTE / EXPLANATION
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1 1 Pursuant to the February 12, 2001 Order (1) Authorizing
3 1 Continued Use of Existing Forms and Records; (2)
Authorizing Maintenance of Existing Corporate Bank
Accounts and Cash Management System; and (3) Extending
Time to Comply with 11 U.S.C. Section 345 Investment
Guidelines, funds in the Bank of America and Key Bank
deposit accounts are swept daily into Kevco's lead
account number 1295026976. The Bank of America lead
account is administered by, and held in the name of
Kevco Management Co. Accordingly, all cash receipts and
disbursements flow through Kevco Management's Bank of
America DIP account. A schedule allocating receipts and
disbursements among Kevco, Inc. and its subsidiaries is
included in this report as a Supplement to Accrual
Basis -3.
1 15A,B,C Intercompany assets were inadvertently doubled on
1 32 Debtor's Schedules. The adjustment to equity corrects
the error.
1 15B,C Intercompany receivables/payables are from/to co-debtors
1 22A Kevco Management Co. (Case No. 401-40788-BJH), Kevco
1 27A Distribution, LP (Case No. 401-40789-BJH), Kevco
7 3 Holding, Inc. (Case No. 401-40785-BJH), DCM Delaware,
Inc. (Case No. 401-40787-BJH), Kevco GP, Inc. (Case No.
401-40786-BJH), Kevco Components, Inc. (Case No.
401-40790-BJH), and Kevco Manufacturing, LP. (Case No.
401-40784-BJH).
1 24 Secured debt reductions are from the sales of Kevco
Manufacturing, LP's operating divisions, the asset sale
of the South Region of Kevco Distribution, as well as
direct cash payments.