Exhibit 99.1
Consolidated Freightways Corporation
Consolidating Income Statements
For the Month Ended June 30, 2004
(Unaudited)
Consolidated of Delaware | Consolidated Freightways Corporation | CF AirFreight Corporation | Leland James Service Corporation | Redwood Systems Inc. | CF MovesU Inc. | CFCD 2002 LLC | CFCD 2002 Member LLC | CFCD 2002A LLC | CFCD 2002A Member LLC | Total | ||||||||||||||||||||||||||||
Revenue - Customers | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | ||||||||||||||||
Revenue - Affiliates | — | — | — | — | — | — | — | — | — | — | — | |||||||||||||||||||||||||||
Total Revenue | — | — | — | — | — | — | — | — | — | — | — | |||||||||||||||||||||||||||
Operating Expenses | 211,937 | — | — | — | — | — | 17,203 | — | — | — | 229,140 | |||||||||||||||||||||||||||
Salaries, Wages, and Benefits (a) | 20,066,751 | — | — | — | — | — | — | — | — | — | 20,066,751 | |||||||||||||||||||||||||||
Purchased Transportation | — | — | 12,023 | — | — | — | — | — | — | — | 12,023 | |||||||||||||||||||||||||||
Operating Taxes and Licensing | (25,172 | ) | — | — | — | — | — | 86,550 | — | — | — | 61,378 | ||||||||||||||||||||||||||
Claims and Insurance | 26,375 | — | — | — | — | — | 5,059 | — | 1,735 | — | 33,169 | |||||||||||||||||||||||||||
Rents | (184,933 | ) | — | — | — | — | — | — | — | — | — | (184,933 | ) | |||||||||||||||||||||||||
Other G&A Expense | 869,938 | — | (1,076 | ) | — | — | — | 224 | — | — | — | 869,086 | ||||||||||||||||||||||||||
(Gain)/Loss on Sale of Assets | (1,105,269 | ) | — | — | — | — | — | (8,846,503 | ) | — | — | — | (9,951,772 | ) | ||||||||||||||||||||||||
Total Operating Expenses | 19,859,627 | — | 10,947 | — | — | — | (8,737,467 | ) | — | 1,735 | — | 11,134,842 | ||||||||||||||||||||||||||
Operating Income (Loss) | (19,859,627 | ) | — | (10,947 | ) | — | — | — | 8,737,467 | — | (1,735 | ) | — | (11,134,842 | ) | |||||||||||||||||||||||
Temporary Investment Interest | 49,000 | — | — | — | — | — | 43,527 | — | 9,193 | — | 101,720 | |||||||||||||||||||||||||||
Other Interest Income | 59,376 | — | — | — | — | — | — | — | — | — | 59,376 | |||||||||||||||||||||||||||
Interest Income | 108,376 | — | — | — | — | — | 43,527 | — | 9,193 | — | 161,096 | |||||||||||||||||||||||||||
Other Miscellaneous, Net (b) | 9,262,515 | — | — | — | — | — | — | — | — | — | 9,262,515 | |||||||||||||||||||||||||||
Income (Loss) Before Taxes | (10,488,736 | ) | — | (10,947 | ) | — | — | — | 8,780,994 | — | 7,458 | — | (1,711,231 | ) | ||||||||||||||||||||||||
Income Taxes | — | — | — | — | — | — | — | — | — | — | — | |||||||||||||||||||||||||||
Net Income (Loss) | $ | (10,488,736 | ) | $ | — | $ | (10,947 | ) | $ | — | $ | — | $ | — | $ | 8,780,994 | $ | — | $ | 7,458 | $ | — | $ | (1,711,231 | ) | |||||||||||||
| (a) | Includes a $19.5 million charge related to settlement of withdrawal liabilities associated with various union pension funds to which the Company made contributions to on behalf of its former employees. |
| (b) | As of September 3, 2002, the date that CF declared bankruptcy, Consolidated Freightways Corporation of Delaware (CFCD) owed CF Risk Management (CFRM), an affiliated captive insurance company, $8.7 million for unpaid insurance premiums and $0.6 million for accrued interest. Due to CFCD’s bankruptcy, it was unable to pay these obligations. Pursuant to Article IV of the Debtors’ Chapter 11 Plan, CFRM (as a holder of a Non-Debtor Affiliate Claim) will not receive any distribution of cash or other property on account of the above liabilities owed to it by CFCD. Instead, such claims will be deemed rejected and the debt cancelled under the plan. Accordingly, to reflect the economic reality of the situation, CFCD and CFRM recorded the cancellation and write-off of the combined $9.3 million intercompany payable and receivable in June 2004 business. |
