EXHIBIT 99.2
CASE NAME: KEVCO MANAGEMENT, INC. ACCRUAL BASIS
CASE NUMBER: 401-40788-BJH-11
JUDGE: BARBARA J. HOUSER
UNITED STATES BANKRUPTCY COURT
NORTHERN DISTRICT OF TEXAS
-------- -----
FORT WORTH DIVISION
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MONTHLY OPERATING REPORT
MONTH ENDING: MARCH 31, 2002
--------------
IN ACCORDANCE WITH TITLE 28, SECTION 1746, OF THE UNITED STATES CODE, I DECLARE
UNDER PENALTY OF PERJURY THAT I HAVE EXAMINED THE FOLLOWING MONTHLY OPERATING
REPORT (ACCRUAL BASIS - 1 THROUGH ACCRUAL BASIS - 7) AND THE ACCOMPANYING
ATTACHMENTS AND, TO THE BEST OF MY KNOWLEDGE, THESE DOCUMENTS ARE TRUE, CORRECT
AND COMPLETE. DECLARATION OF THE PREPARER (OTHER THAN RESPONSIBLE PARTY): IS
BASED ON ALL INFORMATION OF WHICH PREPARER HAS ANY KNOWLEDGE.
RESPONSIBLE PARTY:
/s/ WILFORD W. SIMPSON TREASURER
- ----------------------------------------- --------------------------------
Original Signature of Responsible Party Title
WILFORD W. SIMPSON APRIL 22, 2002
- ----------------------------------------- --------------------------------
Printed Name of Responsible Party Date
PREPARER:
/s/ DENNIS S. FAULKNER ACCOUNTANT FOR DEBTOR
- ----------------------------------------- --------------------------------
Original Signature of Preparer Title
DENNIS S. FAULKNER APRIL 22, 2002
- ----------------------------------------- --------------------------------
Printed Name of Preparer Date
CASE NAME: KEVCO MANAGEMENT, INC. ACCRUAL BASIS - 1
CASE NUMBER: 401-40788-BJH-11
COMPARATIVE BALANCE SHEET
SCHEDULED MONTH MONTH MONTH
ASSETS AMOUNT JAN-02 FEB-02 MAR-02
- ------ ------------- -------------- ------------- --------------
1. Unrestricted Cash (FOOTNOTE) 6,557,974 3,006,125 2,958,782 2,832,011
2. Restricted Cash
3. Total Cash 6,557,974 3,006,125 2,958,782 2,832,011
4. Accounts Receivable (Net) (FOOTNOTE) 300,000 300,000 300,000
5. Inventory
6. Notes Receivable
7. Prepaid Expenses (FOOTNOTE) 3,450,681 391,128 340,945 340,945
8. Other (Attach List) 263,606 0 0 0
9. Total Current Assets 10,272,261 3,697,253 3,599,727 3,472,956
10. Property, Plant & Equipment 3,285,885 0 0 0
11. Less: Accumulated Depreciation/Depletion (1,753,163) 0 0 0
12. Net Property, Plant & Equipment 1,532,722 0 0 0
13. Due From Insiders
14. Other Assets - Net of Amortization (Attach List) 36,082 0 0 0
15. Other (Attach List) (FOOTNOTE) 153,399,371 39,971,438 39,971,438 39,971,438
16. Total Assets 165,240,436 43,668,691 43,571,165 43,444,394
POST PETITION LIABILITIES
17. Accounts Payable
18. Taxes Payable 5,221 5,221 5,221
19. Notes Payable
20. Professional Fees
21. Secured Debt
22. Other (Attach List) (FOOTNOTE) 1,752,084 1,741,659 1,741,659
23. Total Post Petition Liabilities 1,757,305 1,746,880 1,746,880
PRE PETITION LIABILITIES
24. Secured Debt (FOOTNOTE) 75,885,064 13,509,318 13,590,741 13,680,889
25. Priority Debt (FOOTNOTE) 200,832 0 0 0
26. Unsecured Debt 1,779,701 1,377,554 1,377,554 1,377,554
27. Other (Attach List) 242,243,558 169,586,497 169,579,877 169,579,890
28. Total Pre Petition Liabilities 320,109,155 184,473,369 184,548,172 184,638,333
29. Total Liabilities 320,109,155 186,230,674 186,295,052 186,385,213
EQUITY
30. Pre Petition Owners' Equity (154,868,719) (154,868,719) (154,868,719)
31. Post Petition Cumulative Profit Or (Loss) (5,930,064) (6,010,545) (6,137,329)
32. Direct Charges To Equity (Attach Explanation FOOTNOTE) 18,236,800 18,155,377 18,065,229
33. Total Equity (142,561,983) (142,723,887) (142,940,819)
34. Total Liabilities and Equity 43,668,691 43,571,165 43,444,394
This form x does does not have related footnotes on Footnotes Supplement.
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CASE NAME: KEVCO MANAGEMENT, INC. SUPPLEMENT TO
CASE NUMBER: 401-40788-BJH-11 ACCRUAL BASIS - 1
COMPARATIVE BALANCE SHEET
SCHEDULED MONTH MONTH MONTH
ASSETS AMOUNT JAN-02 FEB-02 MAR-02
- ------ ------------- -------------- ------------- --------------
A. Security Deposit 8,794 0 0 0
B. Cash Surrender Value: Life Ins. 254,812 0 0 0
C.
D.
E.
TOTAL OTHER ASSETS - LINE 8 263,606 0 0 0
A. Organizational Costs 36,082 0 0 0
B.
C.
D.
E.
TOTAL OTHER ASSETS NET OF AMORTIZATION - LINE 14 36,082 0 0 0
A. Intercompany Receivables 113,743,558 0 0 0
B. Intercompany Royalties 39,655,813 39,971,438 39,971,438 39,971,438
C.
D.
E.
TOTAL OTHER ASSETS - LINE 15 153,399,371 39,971,438 39,971,438 39,971,438
POST PETITION LIABILITIES
A. Accrued Liabilities Other 409,909 409,909 409,909
B. Deferred Compensation 960,371 960,371 960,371
C. Accrued Health Claims 381,804 371,379 371,379
D.
E.
F.
G.
TOTAL OTHER POST PETITION LIABILITIES - LINE 22 1,752,084 1,741,659 1,741,659
PRE PETITION LIABILITIES
A. Intercompany Payables (FOOTNOTE) 113,743,558 41,086,497 41,079,877 41,079,890
B. 10 3/8% Senior Sub. Notes 105,000,000 105,000,000 105,000,000 105,000,000
C. Sr. Sub. Exchangeable Notes 23,500,000 23,500,000 23,500,000 23,500,000
D.
E.
TOTAL OTHER PRE PETITION LIABILITIES - LINE 27 242,243,558 169,586,497 169,579,877 169,579,890
CASE NAME: KEVCO MANAGEMENT, INC. ACCRUAL BASIS - 2
CASE NUMBER: 401-40788-BJH-11
INCOME STATEMENT
MONTH MONTH MONTH QUARTER
REVENUES JAN-02 FEB-02 MAR-02 TOTAL
- -------- ------------- -------------- ------------- --------------
1. Gross Revenues 0
2. Less: Returns & Discounts 0
3. Net Revenue 0 0 0 0
COST OF GOODS SOLD
4. Material 0
5. Direct Labor 0
6. Direct Overhead 0
7. Total Cost Of Goods Sold 0 0 0 0
8. Gross Profit 0 0 0 0
OPERATING EXPENSES
9. Officer / Insider Compensation 17,178 33,962 17,809 68,949
10. Selling & Marketing 0
11. General & Administrative 4,579 6,394 142 11,115
12. Rent & Lease 5,079 6,834 3,214 15,127
13. Other (Attach List) 34,065 8,513 105,807 148,385
14. Total Operating Expenses 60,901 55,703 126,972 243,576
15. Income Before Non-Operating
Income & Expense (60,901) (55,703) (126,972) (243,576)
OTHER INCOME & EXPENSES
16. Non-Operating Income (Att List) 4,736 5,788 188 10,712
17. Non-Operating Expense (Att List) 0 0 0 0
18. Interest Expense 0
19. Depreciation / Depletion 0
20. Amortization 0
21. Other (Attach List) 0
22. Net Other Income & Expenses 4,736 5,788 188 10,712
REORGANIZATION EXPENSES
23. Professional Fees 92,450 30,567 0 123,017
24. U.S. Trustee Fees 11,500 0 0 11,500
25. Other (Attach List) 0
26. Total Reorganization Expenses 103,950 30,567 0 134,517
27. Income Tax 0
28. Net Profit (Loss) (160,115) (80,482) (126,784) (367,381)
This form x does does not have related footnotes on Footnotes Supplement.
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CASE NAME: KEVCO MANAGEMENT, INC. SUPPLEMENT TO
CASE NUMBER: 401-40788-BJH-11 ACCRUAL BASIS - 2
INCOME STATEMENT
MONTH MONTH MONTH QUARTER
OPERATING EXPENSES JAN-02 FEB-02 MAR-02 TOTAL
- ------------------ ------------- -------------- ------------- --------------
A. Utilities & Telephone 192 170 188 550
B. Payroll Taxes 33,873 6,934 7,695 48,502
C. Contract Labor 563 305 868
D. Insurance (SEE FOOTNOTE) 846 97,619 98,465
E. 0
TOTAL OTHER OPERATING EXPENSES - LINE 13 34,065 8,513 105,807 148,385
OTHER INCOME & EXPENSES
A. Interest and Misc. Income 4,736 5,788 10,742 21,266
B. Ernst & Young: Income Tax Preparation (10,554) (10,554)
C. 0
D. 0
E. 0
TOTAL NON-OPERATING INCOME - LINE 16 4,736 5,788 188 10,712
A. 0
B. 0
C. 0
D. 0
E. 0
TOTAL NON-OPERATING EXPENSE - LINE 17 0 0 0 0
REORGANIZATION EXPENSES
A. 0
B. 0
C. 0
D. 0
E. 0
TOTAL OTHER REORGANIZATION EXPENSES - LINE 25 0 0 0 0
CASE NAME: KEVCO MANAGEMENT, INC. ACCRUAL BASIS - 3
CASE NUMBER: 401-40788-BJH-11
CASH RECEIPTS AND MONTH MONTH QUARTER
DISBURSEMENTS JAN-02 FEB-02 MONTH TOTAL
- ----------------- ------------- -------------- ------------- --------------
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 MANAGEMENT, INC. SUPPLEMENT TO ACCRUAL BASIS -3
MARCH, 2002
CASE NUMBER: 401-40788-BJH-11 CASH RECEIPTS AND DISBURSEMENTS
DIST LP MFG MGMT HOLDING COMP KEVCO INC TOTAL
------- ------- --------- ------- ---- --------- ----------
1 CASH-BEGINNING OF MONTH -- 120,993 2,958,782 -- -- 1,000 3,080,775
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 -- 151 12,020 -- -- -- 12,171
INTERCOMPANY TRANSFERS 11,541 (10,553) 12 -- (1,000) --
SALE EXPENSE REIMBURSEMENT
INCOME TAX REFUND
RENT
PAYROLL TAX ADVANCE RETURNED
MISC 8,036 --
INTEREST INCOME 151 3,984
9 TOTAL NON OPERATING RECEIPTS 11,541 (10,402) 12,032 -- -- (1,000) 12,171
10 TOTAL RECEIPTS 11,541 (10,402) 12,032 -- -- (1,000) 12,171
11 CASH AVAILABLE 11,541 110,591 2,970,814 -- -- -- 3,092,946
OPERATING DISBURSEMENTS
12 NET PAYROLL 17,547 17,547
13 PAYROLL TAXES PAID -- 7,695 7,695
14 SALES, USE & OTHER TAXES PAID 11,541 -- 11,541
15 SECURED/RENTAL/LEASES -- 3,214 3,214
16 UTILITIES -- 188 188
17 INSURANCE -- 98,810 98,810
18 INVENTORY PURCHASES -- --
19 VEHICLE EXPENSE -- --
20 TRAVEL -- --
21 ENTERTAINMENT -- --
22 REPAIRS & MAINTENANCE -- --
23 SUPPLIES -- --
24 ADVERTISING --
25 OTHER -- 9 796 -- -- -- 805
LOAN PAYMENTS -- -- --
FREIGHT -- --
CONTRACT LABOR -- 493 493
401 K PAYMENTS -- --
PAYROLL TAX ADVANCE ADP -- --
WAGE GARNISHMENTS --
MISC 9 303 312
26 TOTAL OPERATING DISBURSEMENTS 11,541 9 128,250 -- -- -- 139,800
REORGANIZATION DISBURSEMENTS
27 PROFESSIONAL FEES -- 10,553 10,553
28 US TRUSTEE FEES -- --
29 OTHER --
30 TOTAL REORGANIZATION EXPENSE -- -- 10,553 -- -- -- 10,553
31 TOTAL DISBURSEMENTS 11,541 9 138,803 -- -- -- 150,353
32 NET CASH FLOW -- (10,411) (126,771) -- -- (1,000) (138,182)
33 CASH- END OF MONTH -- 110,582 2,832,011 -- -- -- 2,942,593
CASE NAME: KEVCO MANAGEMENT, INC. ACCRUAL BASIS - 4
CASE NUMBER: 401-40788-BJH-11
SCHEDULED MONTH MONTH MONTH
ACCOUNTS RECEIVABLE AGING AMOUNT JAN-02 FEB-02 MAR-02
- ------------------------- ------------- -------------- ------------- --------------
1. 0 - 30
2. 31 - 60
3. 61 - 90
4. 91 +
5. Total Accounts Receivable 0 0 0 300,000
6. (Amount Considered Uncollectible)
7. Accounts Receivable (Net) (FOOTNOTE) 0 0 0 300,000
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 0
2. State 0
3. Local 0
4. Other (See below) 5,221 5,221
5. Total Taxes Payable 5,221 0 0 0 5,221
6. Accounts Payable 0
STATUS OF POST PETITION TAXES MONTH: MARCH-02
------------------
BEGINNING TAX AMOUNT WITHHELD ENDING TAX
FEDERAL LIABILITY * AND/OR ACCRUED (AMOUNT PAID) LIABILITY
- ------- ------------- --------------- ------------- --------------
1. Withholding ** (6,429) 6,429 0
2. FICA - Employee ** (1,986) 1,986 0
3. FICA - Employer ** (1,986) 1,986 0
4. Unemployment 0 0
5. Income 0
6. Other (Attach List)
7. Total Federal Taxes 0 (10,401) 10,401 0
STATE AND LOCAL
8. Withholding 0 0
9. Sales 0 0
10. Excise 0
11. Unemployment 0 0
12. Real Property (FOOTNOTE) 5,221 5,221
13. Personal Property 0
14. Other (Attach List) 0
15. Total State And Local 5,221 0 0 5,221
16. Total Taxes 5,221 (10,401) 10,401 5,221
* The beginning tax liability should represent the liability from the
prior month or, if this is the first operating report, the amount should
be zero.
** Attach photocopies of IRS Form 6123 or your FTD coupon and payment
receipt to verify payment of deposit.
This form x does does not have related footnotes on Footnotes Supplement.
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CASE NAME: KEVCO MANAGEMENT, INC. ACCRUAL BASIS - 5
CASE NUMBER: 401-40788-BJH-11
The debtor in possession must complete the reconciliation below for each bank
account, including all general, payroll and tax accounts, as well as all savings
and investment accounts, money market accounts, certificates of deposit,
government obligations, etc. Accounts with restricted funds should be identified
by placing an asterisk next to the account number. Attach additional sheets if
necessary.
MONTH: MARCH-02
------------------
BANK RECONCILIATIONS Account # 1 Account # 2
- -------------------- ------------- --------------
A. BANK: Bank of America Bank of America Other Accounts
B. ACCOUNT NUMBER: 1295026976 3751629012 (Attach List) TOTAL
DIP Disbursement
C. PURPOSE (TYPE): Operating Account Account
1. Balance Per Bank Statement 103,414 35,037 2,711,275 2,849,726
2. Add: Total Deposits Not Credited 0 0
3. Subtract: Outstanding Checks (11,866) (5,849) (17,715)
4. Other Reconciling Items 0 0
5. Month End Balance Per Books 103,414 23,171 2,705,426 2,832,011
6. Number of Last Check Written N/A N/A
INVESTMENT ACCOUNTS
DATE OF TYPE OF
BANK, ACCOUNT NAME & NUMBER PURCHASE INSTRUMENT PURCHASE PRICE CURRENT VALUE
- -------------------- ------------- -------------- ------------- -------------
7.
8.
9.
10. (Attach List)
11. Total Investments 0 0
CASH
12. Currency On Hand 0
13. Total Cash - End of Month 2,832,011
This form does x does not have related footnotes on Footnotes Supplement.
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CASE NAME: KEVCO MANAGEMENT, INC. SUPPLEMENT TO
CASE NUMBER: 401-40788-BJH-11 ACCRUAL BASIS - 5
MONTH: MARCH-02
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BANK RECONCILIATIONS Account # 3 Account # 4 Account # 5
- -------------------- ------------- -------------- -------------
A. BANK: Bank of America/ Bank of Bank of
Nations Funds America America TOTAL
B. ACCOUNT NUMBER: 846713 3751775241 3750801912 OTHER BANK
C. PURPOSE (TYPE): Kevco, Inc. S-T ACCOUNTS
Investment Stay Pay Payroll-Mgmt
1. Balance Per Bank Statement 2,613,260 88,200 9,815 2,711,275
2. Add: Total Deposits Not Credited 0
3. Subtract: Outstanding Checks (5,849) (5,849)
4. Other Reconciling Items 0
5. Month End Balance Per Books 2,613,260 88,200 3,966 2,705,426
6. Number of Last Check Written N/A N/A N/A
INVESTMENT ACCOUNTS
DATE OF TYPE OF
BANK, ACCOUNT NAME & NUMBER PURCHASE INSTRUMENT PURCHASE PRICE CURRENT VALUE
- --------------------------- ------------- -------------- -------------- -------------
A.
B.
C.
D.
TOTAL OTHER INVESTMENT
ACCOUNTS - LINE 10 0 0
CASE NAME: KEVCO MANAGEMENT, INC. ACCRUAL BASIS - 6
CASE NUMBER: 401-40788-BJH-11
MONTH: MARCH-02
-------------
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 TO
NAME PAYMENT PAID DATE
---- ------------- ------------- --------------
1. Sharon Romere Expense Reimb. 188 1,724
2. Joe Tomczak Expense Reimb. 626
3. John Wittig Expense Reimb. 263
4. Sharon Romere Payroll 126,246
5. Joe Tomczak Payroll 177,884
6. John Wittig Payroll 144,039
7. Wil Simpson Payroll 17,547 222,263
Other (see attached) 74 132,293
8. Total Payments To
Insiders 17,809 805,338
PROFESSIONALS
DATE OF
COURT ORDER TOTAL
AUTHORIZING AMOUNT TOTAL PAID INCURRED
NAME PAYMENT APPROVED AMOUNT PAID TO DATE & UNPAID *
---- ------------- ------------- -------------- ------------- --------------
1. Haynes and Boone 3/20/01 1,272,064 1,272,064
2. Lain, Faulkner & Co., P.C. 3/20/01 327,594 327,594 6,620
3. Baker & McKenzie 3/20/01 288,151 288,151
4. Gordion Group 3/20/01 17,438 17,438
5. (Attach List) 28,513 10,554 28,513
6. Total Payments To Professionals 1,933,760 10,554 1,933,760 6,620
* Include all fees incurred, both approved and unapproved
POST PETITION STATUS OF SECURED NOTES, LEASES PAYABLE AND ADEQUATE
PROTECTION PAYMENTS
SCHEDULED TOTAL
MONTHLY UNPAID
PAYMENTS AMOUNTS PAID POST
NAME OF CREDITOR DUE DURING MONTH PETITION
---------------- ------------- -------------- -------------
1. Bank of America N/A 13,680,889
2. Leases Payable none
3.
4.
5. (Attach List)
6. TOTAL 0 0 13,680,889
This form does x does not have related footnotes on Footnotes Supplement.
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CASE NAME: KEVCO MANAGEMENT, INC. SUPPLEMENT TO
CASE NUMBER: 401-40788-BJH-11 ACCRUAL BASIS - 6
PAYMENTS TO INSIDERS AND PROFESSIONALS MONTH: MARCH-02
-------------
INSIDERS
TYPE OF AMOUNT TOTAL PAID
NAME PAYMENT PAID TO DATE
---- --------------- ------------- --------------
A. Bill Estes Director's Fees 13,000
B. Peter McKee Director's Fees 12,000
C. Richard Nevins Director's Fees 13,000
D. Wingate Partners Management Fee 89,390
E. Wingate Partners Expense Reimb. 74 3,984
F. Wil Simpson Expense Reimb. 919
G.
H.
TOTAL OTHER PAYMENTS
TO INSIDERS - LINE 5 74 132,293
PROFESSIONALS
DATE OF
COURT
ORDER TOTAL
AUTHORIZING AMOUNT AMOUNT TOTAL PAID INCURRED &
NAME PAYMENT APPROVED PAID TO DATE UNPAID *
---- --------------- ------------- -------------- ------------- --------------
A. Ernst & Young 3/20/01 28,513 10,554 28,513
B.
C.
D.
E.
F.
G.
H.
TOTAL OTHER PAYMENTS
TO PROFESSIONALS-LINE 5 28,513 10,554 28,513
* Include all fees incurred, both approved and unapproved
POST PETITION STATUS OF SECURED NOTES, LEASES PAYABLE AND ADEQUATE
PROTECTION PAYMENTS
SCHEDULED AMOUNTS TOTAL
MONTHLY PAID UNPAID
PAYMENTS DURING POST
NAME OF CREDITOR DUE MONTH PETITION
---------------- ------------- -------------- -------------
A.
B.
C.
D.
E.
STATUS OF OTHER CREDITORS - LINE 5
CASE NAME: KEVCO MANAGEMENT, INC. ACCRUAL BASIS - 7
CASE NUMBER: 401-40788-BJH-11 MONTH: MARCH-02
----------------
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
-------------- ------- -------------- --------------------------
Property, General Liability, Auto 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 MANAGEMENT, INC. FOOTNOTES SUPPLEMENT
CASE NUMBER: 401-40788-BJH-11 ACCRUAL BASIS
MONTH: MARCH-02
--------------
ACCRUAL
BASIS
FORM
NUMBER LINE NUMBER FOOTNOTE / EXPLANATION
- ------- ----------- ----------------------
1 1 Pursuant to the February 12, 2001 Order (1)
3 1 Authorizing 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 4 In September 2001, Liberty Mutual, Debtor's
Workman's Compensation carrier, drew $300,000 on a
letter of credit issued during 2000. Debtor
believes, after a final audit of its Workman's
Compensation account, that the amount drawn will
be refunded in full.
1 7 Prepaid Expenses consist primarily of professional
fee retainers.
1 15 Intercompany receivables/payables are from/to
1 27A co-debtors Kevco Manufacturing, LP (Case No.
7 3 401-40784-BJH-11), Kevco Distribution, LP (Case
No. 401-40789-BJH-11), Kevco Holding, Inc. (Case
No. 401-40785-BJH-11), DCM Delaware, Inc. (Case
No. 401-40787-BJH-11), Kevco GP, Inc. (Case No.
401-40786-BJH-11), Kevco Components, Inc. (Case
No. 401-40790-BJH-11), and Kevco, Inc. (Case No.
401-40783-BJH-11). Changes in intercompany have
not been reflected as post-petition assets and
liabilities.
1 22 The Debtor records on its books accruals for
certain liabilities based on historical estimates.
While the known creditors were listed on the
Debtor's Schedules, the estimated amounts were
not. Accordingly, for purposes of this report, the
accrued liabilities are reflected as post-petition
"Accrued Liabilities."
1 24 Adjustments to equity are due to secured debt
1 32 reductions pursuant to 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. The secured debt
owed to Bank of America by Kevco, Inc. (Case No.
401-40783-BJH-11) has been guaranteed by all of
its co-debtors (see Footnote 1,15); therefore, the
secured debt is reflected as a liability on all of
the Kevco entities. The charge to equity is simply
an adjustment to the balance sheet.
1 25 Pursuant to Order dated February 12, 2001 and
Supplemental Order dated March 14, 2001, debtors
were authorized to pay pre-petition salaries and
wages up to a maximum of $4,300 per employee.
Debtors were also (a) allowed to pay accrued
vacation to terminated employees and (b) permitted
to continue allowing employees to use vacation
time as scheduled.
2 13D During March 2002, Debtor renewed its Commercial
Property, General Liability and Business Auto
Insurance for six months.
4 12 Property tax liabilities represent accruals of tax
and are not yet due.