UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, DC 20549
--------------------------------------------------------------------------------
FORM 8-K
CURRENT REPORT
PURSUANT TO SECTION 13 OR 15(D) OF THE
SECURITIES EXCHANGE ACT OF 1934
Date of Report (Date of earliest event reported): October 8, 2001
---------------------
MATLACK SYSTEMS, INC.
(Debtor-In-Possession as of March 29, 2001)
(Exact name of registrant as specified in its charter)
Delaware 1-10105 51-0310173
-------------------------------------------------------------------------------------------------------------------
(State or Other Jurisdiction of (Commission (I.R.S. Employer
Incorporation or Organization) File Number) Identification Number)
One Rollins Plaza, Wilmington, Delaware 19803
-------------------------------------------------------------------------------------------------------------------
(Address of Principal Executive Offices) (Zip Code)
Registrant's telephone number, including area code: (302) 426-2700
----------------------------------------------------
N/A
-------------------------------------------------------------------------------------------------------------------
(Former Name or Former Address, if Changed Since Last Report)
Item 5. Other Events.
Matlack Systems, Inc., a Delaware corporation (the "Company"), is filing
herewith the Monthly Operating Reports that the Company has filed with the
United States Bankruptcy Court for the District of Delaware, in connection with
the ongoing proceeding under Chapter 11 of the United States Bankruptcy Code
involving the Company and all of its wholly owned subsidiaries, Case No. 01-1114
(MFW), for the periods set forth below:
o Monthly Operating Report for the period from March 29, 2001 to April
30, 2001;
o Monthly Operating Report for the period from May 1, 2001 to May 31,
2001;
o Monthly Operating Report for the period from June 1, 2001 to June 30,
2001; and
o Monthly Operating Report for the period from July 1, 2001 to July 31,
2001.
Item 7. Financial Statements, Pro Forma Financial Information, and Exhibits.
(c) Exhibits:
99(a)Monthly Operating Report for the period from March 29, 2001 to April
30, 2001.
99(b)Monthly Operating Report for the period from May 1, 2001 to May 31,
2001.
99(c)Monthly Operating Report for the period from June 1, 2001 to June 30,
2001.
99(d)Monthly Operating Report for the period from July 1, 2001 to July 31,
2001.
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the
Registrant has duly caused this report to be signed on its behalf by the
undersigned hereunto duly authorized.
MATLACK SYSTEMS, INC.
Dated: October 23 2001 By: /s/ Patrick J. Bagley
----------------------------------
Patrick J. Bagley
Vice President-Finance & Treasurer
EXHIBIT INDEX
Exhibit No. Description
----------- -----------
99(a) Monthly Operating Report for the period from March 29, 2001 to
April 30, 2001.
99(b) Monthly Operating Report for the period from May 1, 2001 to
May 31, 2001.
99(c) Monthly Operating Report for the period from June 1, 2001 to
June 30, 2001.
99(d) Monthly Operating Report for the period from July 1, 2001 to
July 31, 2001.
Exhibit 99(a)
UNITED STATES BANKRUPTCY COURT
DISTRICT OF DELAWARE
In re: Matlack Systems, Inc., et al. Case No. 01-1114 (MFW)
Reporting Period: March 29, 2001 to April 30, 2001
MONTHLY OPERATING REPORT
File with Court and submit copy to United States Trustee within 20 days
after end of month
Document Explanation
REQUIRED DOCUMENTS Form No. Attached Attached
Schedule of Cash Receipts and Disbursements MOR-1 Yes
Bank Reconciliation (or copies of debtor's bank reconciliations) MOR-1 (CON'T) Yes Note 1
Copies of bank statements No Note 2
Cash disbursements journals No Note 3
Statement of Operations MOR-2 Yes
Balance Sheet MOR-3 Yes
Status of Postpetition Taxes MOR-4 OS
Copies of IRS Form 6123 or payment receipt OS
Copies of tax returns filed during reporting period 0S
Summary of Unpaid Postpetition Debts MOR-4 Yes
Listing of aged accounts payable OS
Accounts Receivable Reconciliation and Aging MOR-5 Yes
Debtor Questionnaire MOR-5 Yes
I declare under penalty of perjury (28 U.S.C. Section 1746) that this report
and the attached documents are true and correct to the best of my knowledge and
belief.
-------------------------------- ----------------------
Signature of Debtor Date
-------------------------------- ----------------------
Signature of Joint Debtor Date
/s/ Patrick J. Bagley May 21, 2001
-------------------------------- ----------------------
Signature of Authorized Individual* Date
Patrick J. Bagley Chief Financial Officer
------------------------------- ------------------------------
Printed Name of Authorized Individual Title of Authorized Individual
Note 1: Detailed bank reconciliations available upon request.
Note 2: Copies of Bank Statements available upon request.
Note 3: Disbursements Journal available upon request.
In re: Matlack Systems, Inc., et al. Case No. 01-1114 (MFW)
Reporting Period: March 29, 2001 to April 30, 2001
SCHEDULE OF CASH RECEIPTS AND DISBURSEMENTS
Amounts reported should be per the debtor's books, not the bank statement. The
beginning cash should be the ending cash from the prior month or, if this is the
first report, the amount should be the balance on the date the petition was
filed. The amounts reported in the "CURRENT MONTH - ACTUAL" column must equal
the sum of the four bank account columns. The amounts reported in the
"PROJECTED" columns should be taken from the SMALL BUSINESS INITIAL REPORT (FORM
IR-1). Attach copies of the bank statements and the cash disbursements journal.
The total disbursements listed in the disbursements journal must equal the total
disbursements reported on this page. A bank reconciliation must be attached for
each account. [See MOR-1 (CON'T)]
BANK ACCOUNTS For the Current Period
From Mar 29, 2001 to April 30, 2001 Cumulative Since Filing
OPERATING PAYROLL & TAX Actual Projected Actual Projected
--------- ------------- ------ --------- ------ ---------
(Note 1)
Cash Receipts
Collection of Accounts $13,994,243 $13,994,243 $12,372,800 $13,994,243 $12,372,800
Receivable
Other 81,520 81,520 81,520
-------------- --------------- -------------- --------------- ------------- ------------
Total Cash Receipts 14,075,763 0 14,075,763 12,372,800 14,075,763 12,372,800
-------------- --------------- -------------- --------------- ------------- ------------
Cash Disbursements
Total Payroll 1,108,706 3,742,817 4,851,523 5,415,600 4,851,523 5,415,600
Leased Operators 1,112,785 1,112,785 1,375,000 1,112,785 1,375,000
Operating Expenses
Fuel 1,444,416 1,444,416 1,500,000 1,444,416 1,500,000
Occupancy costs 222,052 222,052 433,400 222,052 433,400
Equipment Costs 41,411 41,411 162,800 41,411 162,800
Insurance 907,748 907,748 1,476,200 907,748 1,476,200
Other Operating Expenses 1,162,924 1,162,924 2,406,198 1,162,924 2,406,198
-------------- --------------- -------------- --------------- ------------- ------------
Total Operating Expenses 3,778,551 - 3,778,551 5,978,598 3,778,551 5,978,598
Deposits with Key Vendors - - - -
CAPEX - Equipment Refurbishment 13,050 13,050 174,800 13,050 174,800
Deferred Rental and Leasing - -
Costs
Restructuring Costs 26,830 26,830 380,200 26,830 380,200
Inter - Account Transfer 3,742,817 (3,742,817)
-------------- --------------- -------------- --------------- ------------- ------------
Total Disbursements 9,782,740 - 9,782,740 13,324,198 9,782,740 13,324,198
-------------- --------------- -------------- --------------- ------------- ------------
Net Cash Flow/Requirements 4,293,023 - 4,293,023 (951,398) 4,293,023 (951,398)
Opening Cash (Note 2) 915,683 - 915,683 1,317,000 915,683 1,317,000
-------------- --------------- -------------- --------------- ------------- ------------
Closing Cash (Note 3) $5,208,706 $- $5,208,706 $365,602 $5,208,706 $365,602
============== =============== ============== =============== ============= ============
THE FOLLOWING SECTION MUST BE COMPLETED
DISBURSEMENTS FOR CALCULATING U.S. TRUSTEE QUARTERLY FEES: (FROM CURRENT MONTH
ACTUAL COLUMN)
TOTAL DISBURSEMENTS $9,782,740
LESS: TRANSFERS TO DEBTOR IN POSSESSION ACCOUNTS 0
PLUS: ESTATE DISBURSEMENTS MADE BY OUTSIDE SOURCES (i.e. from escrow accounts) 0
TOTAL DISBURSEMENTS FOR CALCULATING U.S. TRUSTEE QUARTERLY FEES $9,782,740
==========
Note 1: The Operating Account represents the aggregate of the Company's
operating accounts including $US & $Cnd Disbursement and Lockbox accounts.
Note 2: The Opening Cash is net of checks in circulation of $1,417,407
(Operating of $456,212 and Payroll of $961,195)
Note 3: The Closing Cash is net of checks in circulation of $866,754 (Operating
of $728,577 and Payroll of $138,177
In re: Matlack Systems, Inc., et al. Case No. 01-1114 (MFW)
Reporting Period: March 29, 2001 to April 30, 2001
BANK RECONCILIATIONS
Continuation Sheet for MOR-1
A bank reconciliation must be included for each bank account. The debtor's
bank reconciliation may be substituted for this page.
Expressed in USD Expressed in USD
Converted @ Converted @
1:1.5591 1:1.5591
-------------------------------------------------------------------------------------
1 2 3 4 5 6
Operating Operating Operating Operating Operating Operating
(Mellon (Mellon Canada (Mellon DE) (First (Mellon) (Bank of Nova
Lockbox) Lockbox) #8016-376-9 Union) #0090907 Scotia)
#145-2480 #01-600052 Note 3 #2000032632253 Note 5 #00820-15
Note 1 Note 2 Note 4 Note 6
-------------------------------------------------------------------------------------
BALANCE PER BOOKS $5,180,074 $23,563 $624,458 $10,988 ($1,466,479) $65,092
---------------------------------------------------------------------------------------------------------------
BANK BALANCE $5,180,074 $24,329 $626,914 $10,998 $0 $94,968
(+) DEPOSITS IN TRANSIT $0 $0 $0 $0 $0 $0
(-) OUTSTANDING CHECKS ($714,988) $0 $0 $0 $0 ($13,588)
OTHER $0 $0 $0 $0 $0 $0
-------------------------------------------------------------------------------------
ADJUSTED BANK BALANCE* $4,465,086 $24,329 $626,914 $10,998 $0 $81,380
-------------------------------------------------------------------------------------
*Adjusted bank balance
must equal
balance per books (see
Note 11)
DEPOSITS IN TRANSIT None None None None None None
CHECKS OUTSTANDING Yes None None None None Yes
------------------------------------------------------------------------------
7 8 9 10 11 12
Payroll Payroll Tax Tax Tax Matlack
(Mellon) (Mellon) Prefunding Prefunding Prefunding Inc.
#119-812 #021-8376 Mellon Mellon Mellon Working
Note 7 Note 8 #021-81812 #021-8309 #021-8931 Funds Grand
Note 9 Note 9 Note 9 Note 10 Total
-------------------------------------------------------------------------------
$45,898 $0 $0 $0 $0 $84,724 $4,568,317
-------------------------------------------------------------------------------
$121,862 $16,315 $0 $0 $0 $6,075,460
$0
($121,862) ($16,315) ($866,753)
$0
-------------------------------------------------------------------------------
$0 $0 $0 $0 $0 $0 $5,208,707
-------------------------------------------------------------------------------
None None None None None None
ALL ALL None None None None
OTHER
Note 1: This account is used primarily for collection of cash receipts on trade
receivables, to wire funds to trade suppliers and to the payroll accounts,
as well as to receive wire transfers of funds from outside parties.
Note 2: This account is used primarily for collection of cash receipts on
Canadian trade receivables. Proceeds received in this account are
transferred on a regular basis to the Bank of Nova Scotia account.
Note 3: This account is used for cash receipts unrelated to trade receivables.
Note 4: This account is not active, the balance therein is required by First
Union.
Note 5: This account is used for disbursements to pay trade payables by check.
The list of outstanding checks is attached to the Company's Bank
reconciliation.
Note 6: This account is used for $Cnd disbursements to pay trade payables and
salaries by check. The list of outstanding checks is attached to the
Company's Bank reconciliation.
Note 7: This account is the payroll check disbursement account. A detailed
listing of outstanding checks cannot be provided to respect the
confidentiality of the payees.
Note 8: This account is used to pay salaries by direct deposit.
Note 9: These accounts are funded by the Mellon lockbox account to pay various
taxes.
Note 10: This represents the aggregate of the terminal working fund accounts,
the funding of which are reflected as disbursements in the Schedule of Cash
Receipts & Disbursements.
Note 11: The Adjusted Bank Balance represents the Bank balance net of
Post-Petion checks in circulation. The Balance per Book represents the Bank
balance net of Pre & Postpetition checks in circulation (Pre-Petition
checks have not yet been voided).
In re: Matlack Systems, Inc., et al. Case No. 01-1114 (MFW)
Reporting Period: March 29, 2001 to April 30, 2001
STATEMENT OF OPERATIONS
(Income Statement)
The Statement of Operations is to be prepared on an accrual basis. The accrual
basis of accounting recognizes revenue when it is realized and expenses when
they are incurred, regardless of when cash is actually received or paid.
Current Cumulative
Month Filing to Date
----- --------------
REVENUES
Revenue (Net) $11,035,474 $11,035,474
========================== =======================
OPERATING EXPENSES
Owned Compensation 2,685,169 2,685,169
Leased Operator Compensation 1,321,169 1,321,169
Fuel Expense 944,950 944,950
Misc. Direct Costs 921,084 921,084
Cleaning Expenses 1,175,765 1,175,765
Mechanics Compensation 311,958 311,958
Misc. Maintenance Expense 623,742 623,742
Equipment Costs 1,481,672 1,481,672
Terminal Expenses 1,763,736 1,763,736
-------------------------- -----------------------
TOTAL OPERATING EXPENSES 11,229,454 11,229,454
-------------------------- -----------------------
GROSS PROFIT / (LOSS) (193,980) (193,980)
========================== =======================
G&A EXPENSES 1,114,947 1,114,947
-------------------------- -----------------------
OPERATING PROFIT / (LOSS) (1,308,927) (1,308,927)
OTHER INCOME / EXPENSE
Gain/Loss on Sale of Equipment (81,296) (81,296)
Other Income/Deductions (1,680) (1,680)
-------------------------- -----------------------
TOTAL OTHER INCOME/EXPENSES (82,976) (82,976)
-------------------------- -----------------------
PROFIT / (LOSS) ($1,225,951) ($1,225,951)
========================== =======================
In re: Matlack Systems, Inc., et al. Case No. 01-1114 (MFW)
Reporting Period: March 29, 2001 to April 30, 2001
STATEMENT OF OPERATIONS - continuation sheet
Cumulative
BREAKDOWN OF "OTHER" CATEGORY Month Filing to Date
Revenue
Owned Linehaul Revenue 6,016,751 6,016,751
Owned Accessorial Revenue 1,161,753 1,161,753
Leased Linehaul Revenue 1,842,175 1,842,175
Leased Accessorial Revenue 175,090 175,090
Cleaning Revenue 1,651,429 1,651,429
Other Operating Revenue (145,884) (145,884)
X-Rail Revenue 218,961 218,961
Maintenance Revenue 115,199 115,199
------------------------ ----------------------
11,035,474 11,035,474
------------------------ ----------------------
Owned Compensation
Driver Pay Hourly 876,628 876,628
Driver Overtime Pay 11,305 11,305
Contractual Pay Mile 1,010,730 1,010,730
Fringe Benefits 786,506 786,506
------------------------ ----------------------
2,685,169 2,685,169
------------------------ ----------------------
Leased Operator Comp
Leased Operator Comp 1,321,418 1,321,418
Purchased Transportation (40) (40)
------------------------ ----------------------
1,321,378 1,321,378
------------------------ ----------------------
Fuel Expense
Fuel Terminal 437,247 437,247
Fuel Outside 498,862 498,862
Fuel Taxes (3,769) (3,769)
Oil and Oil Tax 12,610 12,610
------------------------ ----------------------
944,950 944,950
------------------------ ----------------------
Misc Direct Costs
Utility Pay Hourly 43,979 43,979
Utility Fringe Bene3fits 387 387
Tire 112,683 112,683
Hose 64,632 64,632
Meals 79,733 79,733
Lay Over 181,676 181,676
Tolls 47,163 47,163
Fines 4,895 4,895
Mileage Taxes 30,000 30,000
Insurance 355,936 355,936
------------------------ ----------------------
921,084 921,084
------------------------ ----------------------
Cleaning Expenses
Cleaners Pay 280,348 280,348
Overtime Pay 11,221 11,221
Fringe Benefits 162,894 162,894
Cleaning Supplies 207,012 207,012
Waste Treatment 209,072 209,072
Outside Contractors 280,621 280,621
Net Cleaning Interbranch (553) (553)
Environmental 25,150 25,150
------------------------ ----------------------
1,175,765 1,175,765
------------------------ ----------------------
Mechanics Comp
Mechanics Pay 208,657 208,657
Overtime Pay 16,721 16,721
Fringe Benefits 86,580 86,580
------------------------ ----------------------
311,958 311,958
------------------------ ----------------------
In re: Matlack Systems, Inc., et al. Case No. 01-1114 (MFW)
Reporting Period: March 29, 2001 to April 30, 2001
STATEMENT OF OPERATIONS - continuation sheet
Cumulative
BREAKDOWN OF "OTHER" CATEGORY Month Filing to Date
Misc Maintenance Expense
Parts Expense 257,298 257,298
Outside Repairs 310,837 310,837
Tire Repair 22,717 22,717
Shop Expense 32,890 32,890
------------------------ ----------------------
623,742 623,742
------------------------ ----------------------
Equipment Costs
Tractor Depreciation 12,220 12,220
Tractor Rent 578,636 578,636
Trailer Depreciation 209,240 209,240
Trailer Rent 46,376 46,376
License 158,678 158,678
Permit 18,958 18,958
Interest 457,564 457,564
------------------------ ----------------------
1,481,672 1,481,672
------------------------ ----------------------
Terminal Expenses
Terminal Salary & Fringe 692,126 692,126
Utilities 222,457 222,457
Communication Equipment 19,576 19,576
Communication Usage 122,933 122,933
Facility Maintenance 105,382 105,382
Facility Occupancy 293,319 293,319
Transportation General 307,943 307,943
------------------------ ----------------------
1,763,736 1,763,736
------------------------ ----------------------
G&A Expenses
Salaries Expense 235,453 235,453
Fringe Benefits 41,708 41,708
Communications Basic 1,344 1,344
Communication Services 27 27
General Office Supplies 17,164 17,164
Postage 16,381 16,381
Travel & Other 57,407 57,407
Outside Services 45,678 45,678
General & Admin 16,465 16,465
Marketing Promotions 464 464
Legal 4,650 4,650
Dues & Contributions 135 135
Depreciation 2,042 2,042
Computer Equipment Rent 6,204 6,204
Salaries Expense 282,638 282,638
Fringe Benefits 55,547 55,547
Communications Basic 12,215 12,215
Facilities - Rents 58,653 58,653
General Office Supplies 791 791
IBM Supplies 1,051 1,051
Postage 22,856 22,856
Travel & Other 10,832 10,832
Outside Services 100,672 100,672
Computer Software 21,490 21,490
General & Admin 16,182 16,182
Conventions & Seminars 5,435 5,435
Legal 47 47
Insurance 14,139 14,139
Depreciation 21,645 21,645
Depreciation - Leasehold 8,148 8,148
Computer Equipment Rent 45,218 45,218
Other Expense/Terminal Exp 555 555
------------------------ ----------------------
1,123,236 1,123,236
------------------------ ----------------------
In re: Matlack Systems, Inc., et al. Case No. 01-1114 (MFW)
Reporting Period: March 29, 2001 to April 30, 2001
BALANCE SHEET
The Balance Sheet is to be completed on an accrual basis only. Pre-petition
liabilities must be classified separately from Postpetition obligations.
BOOK VALUE AT END
ASSETS OF CURRENT REPORTING BOOK VALUE ON
MONTH PETITION DATE
CURRENT ASSETS
Cash $4,568,317 $1,433,152
Restricted Cash 375,000
Accounts Receivable (Net) 15,181,816 18,045,306
Inventories 3,668,065 3,639,142
Prepaid Expenses 1,912,747 2,108,548
------------------------ ----------------------
TOTAL CURRENT ASSETS 25,705,945 25,226,148
------------------------ ----------------------
PROPERTY AND EQUIPMENT
Revenue Equipment - Cost 96,347,185 98,199,269
Less Accumulated Depreciation (Revenue) (74,642,241) (75,767,277)
Other Property & Equipment - Cost 72,798,380 72,633,319
Less: Accumulated Depreciation (Other) (41,557,892) (41,326,073)
------------------------ ----------------------
TOTAL PROPERTY & EQUIPMENT 52,945,432 53,739,238
------------------------ ----------------------
OTHER ASSETS
Goodwill 1,665,900 1,681,855
Other Assets 0
------------------------ ----------------------
TOTAL OTHER ASSETS 1,665,900 1,681,855
------------------------ ----------------------
TOTAL ASSETS $80,317,277 $80,647,241
------------------------ ----------------------
BOOK VALUE AT END
LIABILITIES AND OWNER EQUITY OF CURRENT REPORTING BOOK VALUE ON
MONTH PETITION DATE
LIABILITIES NOT SUBJECT TO COMPROMISE (Post petition)
Accounts Payable 3,668,505
Accrued Wages & Benefits 2,303,831
Accrued Interest 457,564
Accrued Professional Fees (Note 1) 129,599
Accrued Taxes (refer to FORM MOR-4) (117,461)
Accrued Insurance, Environmental & Other (490,784)
Amount Due to Insiders (Note 2)
------------------------ ----------------------
TOTAL POSTPETITION LIABILITIES 5,951,254 0
------------------------ ----------------------
LIABILITIES SUBJECT TO COMPROMISE (Pre-Petition)
Secured Debt 46,234,256 46,234,256
Priority Debt 6,521,316 10,023,936
Unsecured Debt 31,922,996 33,475,644
------------------------ ----------------------
TOTAL PRE-PETITION LIABILITIES 84,678,568 89,733,836
------------------------ ----------------------
TOTAL LIABILITIES 90,629,822 89,733,836
======================== ======================
OWNER EQUITY
Capital Stock 8,814,434 8,814,434
Capital Surplus 10,619,341 10,619,341
Retained Earnings - Pre-Petition (28,520,370) (28,520,370)
Retained Earnings - Postpetition (1,225,950)
Postpetition Contributions (Distributions)(Draws)(attach
schedule)
------------------------ ----------------------
NET OWNER EQUITY (10,312,545) (9,086,595)
------------------------ ----------------------
TOTAL LIABILITIES AND OWNERS' EQUITY $80,317,277 $80,647,241
------------------------ ----------------------
Note 1: Accrued Professional fees do not include Chapter 11 professionals whose
invoices for the month of April have not been received by the Company and
must be approved by the courts.
Note 2: Amounts due to insiders are included in Accounts Payable and Accrued
Wages
In re: Matlack Systems, Inc., et al. Case No. 01-1114 (MFW)
Reporting Period: March 29, 2001 to April 30, 2001
STATUS OF POSTPETITION TAXES
The beginning tax liability should be the ending liability from the prior month
or, if this is the first report, the amount should be zero. Attach photocopies
of IRS Form 6123 or payment receipt to verify payment or deposit of federal
payroll taxes. Attach photocopies of any tax returns filed during the reporting
period.
Beginning Amount Ending
Tax Withheld Amount Date Check No. Tax
Liability or Accrued Paid Paid or EFT Liability
Federal
Withholding 0 475,365 475,169 Various EFT 196
FICA - Employee 0 273,514 273,247 Various EFT 267
FICA - Employer 0 273,549 273,516 Various EFT 33
Unemployment 0 2,410 0 2,410
Income 0 0 0
Other:_____________ 0 0 0
0 0
------------ ------------ ------------ ------------ ------------- ------------
Total Federal Taxes 0 1,024,838 1,021,932 0 0 2,906
------------ ------------ ------------ ------------ ------------- ------------
State and Local
Withholding 0 115,652 62,705 Various 52,947
Sales 0 25,935 0 25,935
Income 0 0 0
Unemployment 0 16,327 0 16,327
Real & Personal Property 0 30,205 6,153 24,052
Other:___________ 0 77,409 2,9121 74,497
------------ ------------ ------------ ------------ ------------- ------------
Total State and Local 0 265,528 71,770 0 0 193,758
------------ ------------ ------------ ------------ ------------- ------------
Total Taxes 0 1,290,366 1,093,702 0 0 196,664
============ ============ ============ ============ ============= ============
SUMMARY OF UNPAID POSTPETITION DEBITS
Attach aged listing of accounts payable.
Number of Days Past Due
Current 0-30 31-60 61-90 Over 90 Total
------- ---- ----- ----- ------- -----
Accounts Payable 3,668,505 3,668,505
Accrued Wages & Benefits 2,303,831 2,303,831
Accrued Interest 457,564 457,564
Accrued Professional Fees (Note 1) 129,599 129,599
Accrued Taxes (refer to FORM MOR-4) (117,461) (117,461)
Accrued Insurance, Environmental & (490,784) (490,784)
Other
------------ ------------ ------------ ------------ ------------- ------------
Total Post-petition Debts 5,951,254 0 0 0 5,951,254
============ ============ ============ ============ ============= ============
Explain how and when the Debtor intends to pay any past-due Postpetition debts.
In re: Matlack Systems, Inc., et al. Case No. 01-1114 (MFW)
Reporting Period: March 29, 2001 to April 30, 2001
ACCOUNTS RECEIVABLE RECONCILIATION AND AGING
Accounts Receivable Reconciliation Amoun
Total Accounts Receivable at the beginning of the reporting period $18,045,306
+ Amounts billed during the period 11,314,473 (Note 1)
- Amounts collected during the period -13,994,243
- Bad Debt and other write-offs -448,536
+ Change in Reserve 241,548
- Other during the period 23.268
------
Total Accounts Receivable at the end of the reporting period $15,181,816
===========
Accounts Receivable Aging Amount
0 - 30 days old 12,435,991
31 - 60 days old 3,142,906
61 - 90 days old 943,434
91 + days old 3,813,522
---------
Total Accounts Receivable 20,335,853
Foreign exchange, Revenue Recognition, Sales Accrual Adjustments and 175,464
Write-offs
Amount considered uncollectible (Bad Debt) (5,329,501)
----------
Accounts Receivable (Net) 15,181,816
==========
DEBTOR QUESTIONNAIRE
Must be completed each month Yes No
1. Have any assets been sold or transferred outside the normal course X
of business this reporting period? If yes, provide an explanation
below.
2 Have any funds been disbursed from any account other than a debtor X
in possession account this reporting period? If yes, provide an
explanation below.
3. Have all postpetition tax returns been timely filed? If no, X (Note 2)
provide an explanation below.
4. Are workers compensation, general liability and other necessary X
insurance coverages in effect? If no, provide an explanation below.
Note 1: This amount differs from the Revenue reported on MOR-2 due to the sales
tax and foreign exchange posted to the G/L.
Note 2: The delay in filing of tax returns resulted from employee turnover. The
filings are currently being prepared and should be filed shortly.
Exhibit 99(b)
UNITED STATES BANKRUPTCY COURT
DISTRICT OF DELAWARE
In re: Matlack Systems, Inc., et al. Case No. 01-1114 (MFW)
Reporting Period: May 1, 2001 to May 31, 2001
MONTHLY OPERATING REPORT
File with Court and submit copy to United States Trustee within 20 days
after end of month
Document Explanation
REQUIRED DOCUMENTS Form No. Attached Attached
Schedule of Cash Receipts and Disbursements MOR-1 Yes
Bank Reconciliation (or copies of debtor's bank reconciliations) MOR-1 (CON'T) Yes Note 1
Copies of bank statements No Note 2
Cash disbursements journals No Note 3
Statement of Operations MOR-2 Yes
Balance Sheet MOR-3 Yes
Status of Postpetition Taxes MOR-4 Yes
Copies of IRS Form 6123 or payment receipt No N/A
Copies of tax returns filed during reporting period No Note 4
Summary of Unpaid Postpetition Debts MOR-4 Yes
Listing of aged accounts payable No Note 5
Accounts Receivable Reconciliation and Aging MOR-5 Yes
Debtor Questionnaire MOR-5 Yes
I declare under penalty of perjury (28 U.S.C. Section 1746) that this report
and the attached documents are true and correct to the best of my knowledge and
belief.
-------------------------------- ----------------------
Signature of Debtor Date
-------------------------------- ----------------------
Signature of Joint Debtor Date
/s/ Patrick J. Bagley June 22, 2001
-------------------------------- ----------------------
Signature of Authorized Individual* Date
Patrick J. Bagley Chief Financial Officer
-------------------------------- -----------------------
Printed Name of Authorized Individual Title of Authorized Individual
Note 1: Detailed bank reconciliations available upon request.
Note 1: Accrued Professional fees do not include Chapter 11 professionals whose
invoices for the month of April and May have not been received by the
Company and are subject to court approval.
Note 4: No tax returns relating to the Post-Petition period were filed in April.
Note 5: Aged accounts receivable listing available upon request.
In re: Matlack Systems, Inc., et al. Case No. 01-1114 (MFW)
Reporting Period: May 1, 2001 to May 31, 2001
SCHEDULE OF CASH RECEIPTS AND DISBURSEMENTS
Amounts reported should be per the debtor's books, not the bank statement. The
beginning cash should be the ending cash from the prior month or, if this is the
first report, the amount should be the balance on the date the petition was
filed. The amounts reported in the "CURRENT MONTH - ACTUAL" column must equal
the sum of the four bank account columns. The amounts reported in the
"PROJECTED" columns should be taken from the SMALL BUSINESS INITIAL REPORT (FORM
IR-1). Attach copies of the bank statements and the cash disbursements journal.
The total disbursements listed in the disbursements journal must equal the total
disbursements reported on this page. A bank reconciliation must be attached for
each account. [See MOR-1 (CON'T)]
BANK ACCOUNTS For the Current Period
From May 1, 2001 to May 31, 2001 Cumulative Since Filing
OPERATING PAYROLL & TAX Actual Projected Actual Projected
--------- ------------- ------ --------- ------ ---------
(Note 1)
Cash Receipts
Collection of Accounts $ 11,748,764 $ 11,748,764 $ 11,946,400 $ 25,743,007 $ 24,319,200
Receivable
Other 16,771 16,771 - 98,291 -
-------------- --------------- -------------- --------------- ------------- ------------
Total Cash Receipts 11,765,535 0 11,765,535 11,946,400 25,841,298 24,319,200
-------------- --------------- -------------- --------------- ------------- ------------
- -
Cash Disbursements
Total Payroll 722,391 4,413,096 5,135,487 4,946,200 9,987,010 10,361,800
Leased Operators 1,292,707 1,292,707 1,245,000 2,405,492 2,620,000
Operating Expenses
Fuel 1,233,457 1,233,457 1,354,200 2,677,873 2,854,200
Occupancy costs 290,456 290,456 385,400 512,508 818,800
Equipment Costs (17,743) (17,743) - 23,668 162,800
Insurance 1,017,427 1,017,427 1,172,200 1,925,175 2,648,400
Other Operating Expenses 1,926,538 1,926,538 2,235,600 3,089,462 4,461,799
-------------- --------------- -------------- --------------- ------------- ------------
Total Operating Expenses 4,450,135 - 4,450,135 5,147,400 8,228,686 11,125,999
June 22, 2001
Deposits with Key Vendors 10,975 10,975 - 10,975 -
CAPEX - Equipment Refurbishment - - 160,400 13,050 335,200
Deferred Rental and Leasing 30,189 30,189 1,131,200 30,189 1,131,200
Costs
Restructuring Costs 122,642 122,642 441,800 149,472 822,000
Inter - Account Transfer 4,413,096 (4,413,096)
-------------- --------------- -------------- --------------- ------------- ------------
Total Disbursements 11,042,135 - 11,042,135 13,072,000 20,824,875 26,396,199
-------------- --------------- -------------- --------------- ------------- ------------
Net Cash Flow/Requirements 733,400 - 723,400 (1,125,600) 5,016,423 (2,076,999)
Opening Cash (Note 2) 5,208,706 - 5,208,706 365,602 915,683 1,317,000
-------------- --------------- -------------- --------------- ------------- ------------
N Closing Cash (Note 3) $ 5,932,106 $ - $ 5,932,106 $ (759,998) $ 5,932,106 $ (759,999)
============== =============== ============== =============== ============= ============
received by the Company and are subject to court approval.
THE FOLLOWING SECTION MUST BE COMPLETED
DISBURSEMENTS FOR CALCULATING U.S. TRUSTEE QUARTERLY FEES: (FROM CURRENT MONTH ACTUAL COLUMN)
Q1 Q2
-- --
TOTAL DISBURSEMENTS $ 150,000 $ 10,892,135
LESS: TRANSFERS TO DEBTOR IN POSSESSION ACCOUNTS 0 0
PLUS: ESTATE DISBURSEMENTS MADE BY OUTSIDE SOURCES (i.e. from escrow accounts) 0 0
-------------- ---------------
TOTAL DISBURSEMENTS FOR CALCULATING U.S. TRUSTEE QUARTERLY FEES $ 150,000 $ 10,892,135
============== ===============
Note 1: The Operating Account represents the aggregate of the Company's
operating accounts including $US & $Cnd Disbursement and Lockbox accounts.
Note 2: The Opening Cash is net of checks in circulation of $866,754 (Operating
of $728,577 and Payroll of $138,177)
Note 3: The Closing Cash is net of checks in circulation of $1,296,395
(Operating of $1,065,648 and Payroll of $230,747); See Adjusted Bank
Balance on Form MOR-1 (CON'T).
In re: Matlack Systems, Inc., et al. Case No.01-1114 (MFW)
Reporting Period: March 29, 2001 to March 30, 2001
BANK RECONCILIATIONS
Continuation Sheet for MOR-1
A bank reconciliation must be included for each bank account. The debtor's bank
reconciliation may be substituted for this page.
Expressed in USD Expressed in USD
Converted @ Converted @
1:1.5591 1:1.5591
---------------------------------------------------------------------------------------
1 2 3 4 5 6
Operating Operating Operating Operating Operating Operating
(Mellon (Mellon Canada (Mellon DE) (First Union) (Mellon) (Bank of Nova
Lockbox) Lockbox) #8016-376-9 #2000032632253 #0090907 Scotia)
#145-2480 #01-600052 Note 3 Note 4 Note 5 #00820-15
Note 1 Note 2 Note 6
---------------------------------------------------------------------------------------
BALANCE PER BOOKS $6,677,870 $42,518 $52,980 $10,988 ($1,049,402) $123,811
----------------------------------------------------------------------------------------------------------------
BANK BALANCE $6,677,870 $40,265 $55,436 $10,998 $0 $215,185
(+) DEPOSITS IN TRANSIT $0 $0 $0 $0 $0 $0
(-) OUTSTANDING CHECKS ($995,712) $0 $0 $0 $0 ($71,935)
OTHER $0 $0 $0 $0 $0 $0
---------------------------------------------------------------------------------------
ADJUSTED BANK BALANCE* $5,682,158 $40,265 $55,436 $10,998 $0 $143,249
---------------------------------------------------------------------------------------
*Adjusted bank balance must equal
balance per books (see Note 11)
DEPOSITS IN TRANSIT None None None None None None
CHECKS OUTSTANDING Yes None None None None Yes
-------------------------------------------------------------------------------
7 8 9 10 11 12
Payroll Payroll Tax Tax Tax Matlack
(Mellon) (Mellon) Prefunding Prefunding Prefunding Inc.
#119-812 #021-8376 Mellon Mellon Mellon Working
Note 7 Note 8 #021-81812 #021-8309 #021-8931 Funds Grand
Note 9 Note 9 Note 9 Note 10 Total
-------------------------------------------------------------------------------
$80,395 $0 $0 $0 $0 $84,363 $6,023,524
-------------------------------------------------------------------------------
$214,645 $14,102 $0 $0 $0 $7,228,500
$0
($214,645) ($14,102) ($1,296,394)
$0
-------------------------------------------------------------------------------
$0 $0 $0 $0 $0 $0 $5,932,106
-------------------------------------------------------------------------------
(NOTE 11)
None None None None None None
ALL ALL None None None None
OTHER
Note 1: This account is used primarily for collection of cash receipts on trade
receivables, to wire funds to trade suppliers and to fund the payroll
accounts, as well as to receive wire transfers of funds from outside
parties.
Note 2: This account is used primarily for collection of cash receipts on
Canadian trade receivables. Proceeds received in this account are
transferred on a regular basis to the Bank of Nova Scotia account.
Note 3: This account is used for cash receipts unrelated to trade receivables.
Note 4: This account is not active.
Note 5: This account is used for disbursements to pay trade payables by check.
The list of outstanding checks is attached to the Company's Bank
reconciliation.
Note 6: This account is used for $Cnd disbursements to pay trade payables and
salaries by check. The list of outstanding checks is attached to the
Company's Bank reconciliation.
Note 7: This account is the payroll check disbursement account. A detailed
listing of outstanding checks cannot be provided to respect the
confidentiality of the payees.
Note 8: This account is used to pay salaries by direct deposit.
Note 9: These accounts are funded by the Mellon lockbox account to pay various
taxes.
Note 10: This represents the aggregate of the terminal working fund accounts,
the funding of which are reflected as disbursements in the Schedule of Cash
Receipts & Disbursements.
Note 11: The Adjusted Bank Balance represents the Bank balance net of
Post-Petition checks in circulation. The Balance per Book represents the
bank balance net of Pre- & Post-Petition checks in circulation
(Pre-Petition checks have not yet been voided.)
In re: Matlack Systems, Inc., et al. Case No. 01-1114 (MFW)
Reporting Period: May 1, 2001 to May 31, 2001
STATEMENT OF OPERATIONS
(Income Statement)
The Statement of Operations is to be prepared on an accrual basis. The accrual
basis of accounting recognizes revenue when it is realized and expenses when
they are incurred, regardless of when cash is actually received or paid.
Current Cumulative
Month Filing to Date
REVENUES
Revenue (Net) $10,193,316 $21,228,790
------------------------- ------------------------
OPERATING EXPENSES
Owned Compensation 2,535,339 5,220,508
Leased Operator Compensation 1,526,971 2,848,349
Fuel Expense 810,924 1,755,874
Misc. Direct Costs 875,938 1,797,022
Cleaning Expenses 967,504 2,143,269
Mechanics Compensation 320,912 632,870
Misc. Maintenance Expense 359,833 983,575
Equipment Costs 1,402,608 2,884,280
Terminal Expenses 1,630,038 3,393,774
------------------------- ------------------------
TOTAL OPERATING EXPENSES 10,430,038 21,659,521
------------------------- ------------------------
GROSS PROFIT / (LOSS) (236,751) (430,731)
------------------------- ------------------------
G&A EXPENSES 1,174,471 2,289,418
------------------------- ------------------------
OPERATING PROFIT / (LOSS) (1,411,222) (2,720,149)
OTHER INCOME / EXPENSE
Gain/Loss on Sale of Equipment 1,594 (79,702)
Other Income/Deductions (2,700) (4,380)
------------------------- ------------------------
TOTAL OTHER INCOME/EXPENSES (1,106) (84,082)
------------------------- ------------------------
PROFIT / (LOSS) ($1,410,116) ($2,636,067)
========================= ========================
In re: Matlack Systems, Inc., et al. Case No. 01-1114 (MFW)
Reporting Period: May 1, 2001 to May 31, 2001
STATEMENT OF OPERATIONS - continuation sheet
Cumulative
BREAKDOWN OF "OTHER" CATEGORY Month Filing to Date
Revenue
Owned Linehaul Revenue 5,448,502 11,465,253
Owned Accessorial Revenue 1,145,228 2,306,981
Leased Linehaul Revenue 1,762,764 3,604,939
Leased Accessorial Revenue 218,228 393,318
Cleaning Revenue 1,342,183 2,993,612
Other Operating Revenue (55,039) (200,923)
X-Rail Revenue 247,298 466,259
Maintenance Revenue 84,152 199,351
------------------------ ----------------------
10,193,316 21,228,790
------------------------ ----------------------
Owned Compensation
Driver Pay Hourly 855,107 1,731,735
Driver Overtime Pay 10,720 22,025
Contractual Pay Mile 1,007,558 2,018,288
Fringe Benefits 661,954 1,448,460
------------------------ ----------------------
2,535,339 5,220,508
------------------------ ----------------------
Leased Operator Comp
Leased Operator Comp 1,385,870 2,707,288
Purchased Transportation 141,101 141,061
------------------------ ----------------------
1,526,971 2,848,349
------------------------ ----------------------
Fuel Expense
Fuel Terminal 261,385 698,632
Fuel Outside 532,457 1,031,319
Fuel Taxes 0 (3,769)
Oil and Oil Tax 17,082 29,692
------------------------ ----------------------
810,924 1,755,874
------------------------ ----------------------
Misc Direct Costs
Utility Pay Hourly 49,085 93,064
Utility Fringe Benefits 459 846
Tire 110,684 223,367
Hose 69,581 134,213
Meals 53,047 132,780
Lay Over 155,777 337,453
Tolls 37,204 84,367
Fines 2,869 7,764
Mileage Taxes 27,500 57,500
Insurance 369,732 725,668
------------------------ ----------------------
875,938 1,797,022
------------------------ ----------------------
Cleaning Expenses
Cleaners Pay 283,420 563,768
Overtime Pay 10,072 21,293
Fringe Benefits 158,142 321,036
Cleaning Supplies 148,087 355,099
Waste Treatment 190,906 399,978
Outside Contractors 152,109 432,730
Net Cleaning Interbranch (732) (1,285)
Environmental 25,500 50,650
------------------------ ----------------------
967,504 2,143,269
------------------------ ----------------------
Mechanics Compensaation
Mechanics Pay 201,347 410,004
Overtime Pay 15,526 32,247
Fringe Benefits 104,271 190,851
Net Mechanics Interbranch (232) (232)
------------------------ ----------------------
320,912 632,870
------------------------ ----------------------
In re: Matlack Systems, Inc., et al. Case No. 01-1114 (MFW)
Reporting Period: May 1, 2001 to May 31, 2001
STATEMENT OF OPERATIONS - continuation sheet
Cumulative
BREAKDOWN OF "OTHER" CATEGORY Month Filing to Date
Misc Maintenance Expense
Parts Expense 132,741 390,039
Outside Repairs 159,194 470,031
Tire Repair 30,288 53,005
Shop Expense 37,610 70,500
------------------------ ----------------------
359,833 983,575
------------------------ ----------------------
Equipment Costs
Tractor Depreciation 12,119 24,339
Tractor Rent 575,399 1,154,035
Trailer Depreciation 205,460 414,700
Trailer Rent 25,058 71,434
License 150,003 308,681
Permit 15,632 34,590
Interest 417,687 875,251
------------------------ ----------------------
1,402,608 2,884,280
------------------------ ----------------------
Terminal Expenses
Terminal Salary & Fringe 746,697 1,438,823
Utilities 151,431 373,888
Communication Equipment 31,076 50,652
Communication Usage 97,525 220,458
Facility Maintenance 46,944 152,326
Facility Occupancy 267,178 560,497
Transportation General 289,187 597,130
------------------------ ----------------------
1,630,038 3,393,774
------------------------ ----------------------
G&A Expenses
Salaries Expense 544,826 1,062,917
Fringe Benefits 94,193 191,448
Communications Basic 16,282 29,841
Communication Services 676 703
Facilities - Rents 62,457 121,110
General Office Supplies 1,574 19,529
IBM Supplies 2,607 3,658
Conventions & Seminars 6,761 12,196
Postage 14,678 53,793
Travel & Other 68,914 137,153
Outside Services 190,901 329,084
Computer Software 7,824 29,314
General & Admin 66,527 99,174
Marketing Promotions 1,372 1,836
Legal 18,081 22,778
Insurance 14,139 28,278
Dues & Contributions 200 335
Depreciation 23,687 47,374
Depreciation - Leasehold 8,148 16,296
Computer Equipment Rent 30,019 81,441
Other Expense/Terminal Exp. 605 1,160
------------------------ ----------------------
1,174,471 2,289,418
------------------------ ----------------------
In re: Matlack Systems, Inc., et al. Case No. 01-1114 (MFW)
Reporting Period: May 1, 2001 to May 31, 2001
BALANCE SHEET
The Balance Sheet is to be completed on an accrual basis only. Pre-petition
liabilities must be classified separately from postpetition obligations.
BOOK VALUE AT END OF BOOK VALUE ON
ASSETS CURRENT REPORTING MONTH PETITION DATE
CURRENT ASSETS
Cash $6,023,524 $389,571
Restricted Cash 415,000
Accounts Receivable (Net) 13,696,705 18,045,306
Inventories 3,449,063 3,639,142
Prepaid Expenses 1,693,938 2,108,548
-------------------------------- -----------------------------
TOTAL CURRENT ASSETS 25,278,230 24,182,567
-------------------------------- -----------------------------
PROPERTY AND EQUIPMENT
Revenue Equipment - Cost 96,663,324 98,199,269
Less: Accumulated Depreciation (Revenue) (74,682,677) (75,767,277)
Other Property & Equipment - Cost 71,855,182 72,633,319
Less: Accumulated Depreciation (Other) (41,171,034) (41,326,073)
-------------------------------- -----------------------------
TOTAL PROPERTY & EQUIPMENT 52,664,795 53,739,238
-------------------------------- -----------------------------
OTHER ASSETS
Goodwill 712,107 744,016
Other Assets 937,839 937,839
-------------------------------- -----------------------------
TOTAL OTHER ASSETS 1,649,946 1,681,855
-------------------------------- -----------------------------
TOTAL ASSETS $79,592,971 $79,603,660
================================ =============================
BOOK VALUE AT END OF BOOK VALUE ON
LIABILITIES AND OWNER EQUITY CURRENT REPORTING MONTH PETITION DATE
LIABILITIES NOT SUBJECT TO COMPROMISE (Postpetition)
Accounts Payable 4,141,760
Accrued Wages & Benefits 2,402,444
Accrued Interest 875,251
Accrued Professional Fees (Note 1) 111,599
Accrued Taxes (refer to FORM MOR-4) (85,042)
Accrued Insurance, Environmental & Other (778,352)
Amounts Due to Insiders (Note 2)
-------------------------------- -----------------------------
TOTAL POSTPETITION LIABILITIES 6,667,660 0
-------------------------------- -----------------------------
LIABILITIES SUBJECT TO COMPROMISE (Pre-Petition)
Secured Debt 46,234,256 46,234,256
Priority Debt 5,291,104 9,330,355
Unsecured Debt 33,122,613 33,125,644
-------------------------------- -----------------------------
TOTAL PRE-PETITION LIABILITIES 84,647,973 88,690,255
-------------------------------- -----------------------------
-------------------------------- -----------------------------
TOTAL LIABILITIES 91,315,633 88,690,255
================================ =============================
OWNER EQUITY
Capital Stock 8,814,434 8,814,434
Capital Surplus 10,619,341 10,619,341
Retained Earnings - Pre-Petition (28,520,370) (28,520,370)
Retained Earnings - Post-Petition (2,636,067)
Postpetition Contributions (Distributions) (Draws) (attach schedule)
-------------------------------- -----------------------------
NET OWNER EQUITY (11,722,662) (9,086,595)
================================ =============================
TOTAL LIABILITIES AND OWNERS' EQUITY $79,592,971 $79,603,660
================================ =============================
Note 1: Accrued Professional fees do not include Chapter 11 professionals whose
invoices for the month of April and May have not been received by the
Company and are subject to court approval.
Note 2: Amounts due to insiders are included in Accounts Payables and Accrued
Wages.
In re: Matlack Systems, Inc., et al. Case No. 01-1114 (MFW)
Reporting Period: May 1, 2001 to May 31, 2001
STATUS OF POSTPETITION TAXES
The beginning tax liability should be the ending liability from the prior month
or, if this is the first report, the amount should be zero. Attach photocopies
of IRS Form 6123 or payment receipt to verify payment or deposit of federal
payroll taxes. Attach photocopies of any tax returns filed during the reporting
period.
Beginning Amount Ending
Tax Withheld Amount Date Check No. Tax
Liability or Accrued Paid Paid or EFT Liability
Federal
Withholding 196 571,593 572,308 Various EFT -519
FICA - Employee 267 327,460 327,986 Various EFT -259
FICA - Employer 33 327,460 327,987 Various EFT -494
Unemployment 2,410 1,673 0 4,083
Other 0 0 0 0
------------ ------------ ------------ ------------ ------------- ------------
Total Federal Taxes 2,906 1,228,186 1,228,281 2,811
------------ ------------ ------------ ------------ ------------- ------------
State and Local
Withholding 52,947 140,900 73,469 Various EFT 120,378
Sales 25,935 28,035 43,807 10,163
Income 0 0 0 0
Unemployment 16,327 13,752 0 30,079
Real & Personal Property 24,052 28,705 0 Various EFT 52,757
Other 74,497 78,647 36,581 Various EFT 116,563
------------ ------------ ------------ ------------ ------------- ------------
Total State and Local 193,758 290,039 153,857 329,940
------------ ------------ ------------ ------------ ------------- ------------
Total Taxes 196,664 1,518,225 1,382,138 332,751
============ ============ ============ ============ ============= ============
SUMMARY OF UNPAID POSTPETITION DEBITS
Attach aged listing of accounts payable.
Number of Days Past Due
Current 0-30 31-60 61-90 Over 90 Total
------- ---- ----- ----- ------- -----
Accounts Payable 4,093,351 48,408 4,141,760
Accrued Wages & Benefits 2,402,444 2,402,444
Accrued Interest 875,251 875,251
Accrued Professional Fees (Note 1) 111,599 111,599
Accrued Taxes (refer to FORM MOR-4) (85,042) (85,042)
Accrued Insurance, Environmental & (778,352) (778,352)
Other
------------ ------------ ------------ ------------ ------------- ------------
6,619,252 48,408 0 0 6,667,660
------------ ------------ ------------ ------------ ------------- ------------
Explain how and when the Debtor intends to pay any past-due postpetition debts.
Note 1: Accrued Professional fees do not include Chapter 11 professionals whose
invoices for the month of April and May have not been received by the
Company and are subject to court approval.
In re: Matlack Systems, Inc., et al. Case No. 01-1114 (MFW)
Reporting Period: May 1, 2001 to May 31, 2001
ACCOUNTS RECEIVABLE RECONCILIATION AND AGING
Accounts Receivable Reconciliation Amount
Total Accounts Receivable at the beginning of the reporting period $15,181,816
+ Amounts billed during the period 10,399,679 (Note 1)
- Amounts collected during the period (11,748,764)
- Bad Debt and other write-offs (873,255)
+ Change in Reserve 812,360
- Other during the period (75,130)
--------
Total Accounts Receivable at the end of the reporting period $13,696,706
===========
Accounts Receivable Aging Amount
0 - 30 days old 10,854,848
31 - 60 days old 2,987,254
61 - 90 days old 1,163,640
91 + days old 2,362,015
---------
17,367,756
Foreign exchange, Revenue Recognition, Sales Accrual Adjustments and Write Offs 846,091
Amounts considered uncollectible (Bad Debt) (4,517,141)
----------
Accounts Receivable (Net) 13,696,706
==========
DEBTOR QUESTIONNAIRE
Must be completed each month Yes No
1. Have any assets been sold or transferred outside the normal course X
of business this reporting period? If yes, provide an explanation
below.
2 Have any funds been disbursed from any account other than a debtor X
in possession account this reporting period? If yes, provide an
explanation below.
3. Have all postpetition tax returns been timely filed? If no, X
provide an explanation below.
4. Are workers compensation, general liability and other necessary X
insurance coverages in effect? If no, provide an explanation below.
Note 1: This amount differs from the Revenue reported on MOR-2 due to the sales
tax and foreign exchange posted to the G/L.
Note 1: Accrued Professional fees do not include Chapter 11 professionals whose
invoices for the month of April and May have not been received by the
Company and are subject to court approval.
Exhibit (c)
UNITED STATES BANKRUPTCY COURT
DISTRICT OF DELAWARE
In re: Matlack Systems, Inc., et al. Case No. 01-1114 (MFW)
Reporting Period: June 1, 2001 to June 30, 2001
MONTHLY OPERATING REPORT
File with Court and submit copy to United States Trustee within 20 days
after end of month
Document Explanation
REQUIRED DOCUMENTS Form No. Attached Attached
Schedule of Cash Receipts and Disbursements MOR-1 Yes
Bank Reconciliation (or copies of debtor's bank reconciliations) MOR-1 (CON'T) Yes Note 1
Copies of bank statements No Note 2
Cash disbursements journals No Note 3
Statement of Operations MOR-2 Yes
Balance Sheet MOR-3 Yes
Status of Postpetition Taxes MOR-4 Yes
Copies of IRS Form 6123 or payment receipt No N/A
Copies of tax returns filed during reporting period No Note 4
Summary of Unpaid Postpetition Debts MOR-4 Yes
Listing of aged accounts payable No Note 5
Accounts Receivable Reconciliation and Aging MOR-5 Yes
Debtor Questionnaire MOR-5 Yes
I declare under penalty of perjury (28 U.S.C. Section 1746) that this report
and the attached documents are true and correct to the best of my knowledge and
belief.
-------------------------------- ----------------------
Signature of Debtor Date
-------------------------------- ----------------------
Signature of Joint Debtor Date
/s/ Patrick J. Bagley July 27, 2001
-------------------------------- ----------------------
Signature of Authorized Individual* Date
Patrick J. Bagley Chief Financial Officer
-------------------------------- ------------------------------
Printed Name of Authorized Individual Title of Authorized Individual
Note 1: Detailed bank reconciliations available upon request.
Note 1: Accrued Professional fees to not include Chapter 11 professionals whose
invoices for the months of April and May have not been received by the
Company and are subject to court approval.
Note 4: No tax returns relating to the Post-Petition were filed in April.
Note 5: Aged accounts receivable listing available upon request.
In re: Matlack Systems, Inc., et al. Case No. 01-1114 (MFW)
Reporting Period: June 1, 2001 to June 30, 2001
SCHEDULE OF CASH RECEIPTS AND DISBURSEMENTS
Amounts reported should be per the debtor's books, not the bank statement. The
beginning cash should be the ending cash from the prior month or, if this is the
first report, the amount should be the balance on the date the petition was
filed. The amounts reported in the "CURRENT MONTH - ACTUAL" column must equal
the sum of the four bank account columns. The amounts reported in the
"PROJECTED" columns should be taken from the SMALL BUSINESS INITIAL REPORT (FORM
IR-1). Attach copies of the bank statements and the cash disbursements journal.
The total disbursements listed in the disbursements journal must equal the total
disbursements reported on this page. A bank reconciliation must be attached for
each account. [See MOR-1 (CON'T)]
BANK ACCOUNTS For the Current Period
June 1, 2001 to June 30, 2001 Cumulative Since Filing
OPERATING PAYROLL & TAX Actual Projected Actual Projected
(Note 1)
Cash Receipts
Collection of Accounts Receivable $ 9,500,944 $ 9,500,944 $ 10,138,800 $ 35,243,950 $ 43,635,400
Other 165,600 165,600 75,000 263,891 75,000
-------------- --------------- -------------- --------------- ------------- ------------
Total Cash Receipts 9,666,544 0 9,666,544 10,213,800 35,507,841 34,533,000
-------------- --------------- -------------- --------------- ------------- ------------
- -
Cash Disbursements
Total Payroll 616,358 3,317,017 3,933,376 4,033,400 13,920,385 14,395,200
Leased Operators 1,045,567 1,045,567 1,007,000 3,451,059 3,627,000
Operating Expenses
Fuel 950,550 950,550 1,036,800 3,628,423 3,891,000
Occupancy costs 379,992 379,992 302,800 892,500 1,121,600
Equipment Costs 616,241 616,241 711,000 639,909 873,800
Insurance 1,537,209 1,537,209 1,254,400 3,462,384 3,902,800
Other Operating Expenses 1,846,738 1,846,738 1,847,200 4,936,200 6,488,999
-------------- --------------- -------------- --------------- ------------- ------------
Total Operating Expenses 5,330,730 - 5,330,730 5,152,200 13,559,416 16,278,199
Deposits with Key Vendors 30,173 30,173 150,000 41,148 150,000
CAPEX - Equipment Refurbishment - - 64,000 13,050 399,200
Deferred Rental and Leasing Costs 33,600 33,600 282,800 63,789 1,414,000
Restructuring Costs 73,531 73,531 1,130,000 223,003 1,952,000
Remittance of Equipment Sales
Proceeds to Secured Lender 241,001 241,001 241,001 -
Inter-Account Transfer 3,317,017 (3,317,017)
-------------- --------------- -- -------------- --------------- ------------- ------------
Total Disbursements 10,687,977 - 10,687,977 11,819,400 31,512,851 38,215,599
-------------- --------------- -- -------------- --------------- ------------- ------------
Net Cash Flow/Requirements (1,021,433) - (1,021,433) (1,605,600) 3,994,990 (3,682,599)
Opening Cash (Note 2) 5,932,106 - 5,932,106 (759,998) 915,683 1,317,000
-------------- --------------- -- -------------- --------------- ------------- ------------
Closing Cash (Note 3) $4,910,673 $ - $4,910,673 $(2,365,598) $4,910,673 $(2,365,599)
============== =============== == ============== =============== ============= ============
THE FOLLOWING SECTION MUST BE COMPLETED
DISBURSEMENTS FOR CALCULATING U.S. TRUSTEE QUARTERLY FEES: (FROM CURRENT MOONTH ACTUAL COLUMN)
Q1 Q2
-- --
TOTAL DISBURSEMENTS $ 150,000 $31,362,851
LESS: TRANSFERS TO DEBTOR IN POSSESSION ACCOUNTS 0 0
PLUS: ESTATE DISBURSEMENTS MADE BY OUTSIDE SOURCES (i.e. from escrow accounts) 0 0
--------------- -------------
TOTAL DISBURSEMENTS FOR CALCULATING U.S. TRUSTEE QUARTERLY FEES $ 150,000 $31,362,851
=============== =============
Note 1: The Operating Account represents the aggregate of the Company's
operating accounts including $US & $Cnd Disbursement & Lockbox accounts
In re: Matlack Systems, Inc., et al. Case No.01-1114 (MFW)
Reporting Period: June 1, 2001 to June 30, 2001
BANK RECONCILIATIONS
Continuation Sheet for MOR-1
A bank reconciliation must be included for each bank account. The debtor's bank
reconciliation may be substituted for this page.
Expressed in USD Expressed in USD
Converted @ Converted @
1:1.5591 1:1.5591
------------------------------------------------------------------------------------
1 2 3 4 5 6
Operating Operating Operating Operating Operating Operating
(Mellon (Mellon Canada (Mellon DE) (First Union) (Mellon) (Bank of Nova
Lockbox) Lockbox) #8016-376-9 #2000032632253#0090907 Scotia)
#145-2480 #01-600052 Note 3 Note 4 Note 5 #00820-15
Note 1 Note 2 Note 6
------------------------------------------------------------------------------------
BALANCE PER BOOKS $5,620,831 $33,077 $169,560 $10,979 ($1,130,130) $125,819
-------------------------------------------------------------------------------------------------------------
BANK BALANCE $5,635,704 $33,815 $169,560 $10,998 $0 $254,078
(+) DEPOSITS IN TRANSIT $0 $0 $0 $0 $0 $0
(-) OUTSTANDING CHECKS ($1,081,331) $0 $0 $0 $0 ($112,152)
OTHER $0 $0 $0 $0 $0 $0
------------------------------------------------------------------------------------
ADJUSTED BANK BALANCE* $4,554,373 $86,309 $169,560 $10,998 $0 $141,926
------------------------------------------------------------------------------------
*Adjusted bank balance
must equal balance per books
(see Note 11)
DEPOSITS IN TRANSIT None None None None None None
CHECKS OUTSTANDING Yes None None None None Yes
------------------------------------------------------------------------------
7 8 9 10 11 12
Payroll Payroll Tax Tax Tax Matlack
(Mellon) (Mellon) Prefunding Prefunding Prefunding Inc.
#119-812 #021-8376 Mellon Mellon Mellon Working
Note 7 Note 8 #021-81812 #021-8309 #021-8931 Funds Grand
Note 9 Note 9 Note 9 Note 10 Total
------------------------------------------------------------------------------
$80,395 $0 $0 $0 $0 $83,120 $4,993,651
------------------------------------------------------------------------------
$178,081 $16,654 $0 $0 $0 $6,298,890
$0
($178,08 ($16,654) $0 ($1,388,218)
$0
------------------------------------------------------------------------------
$0 $0 $0 $0 $0 $0 $4,910,673
------------------------------------------------------------------------------
(NOTE 11)
None None None None None None
ALL ALL None None None None
OTHER
Note 1: This account is used primarily for collection of cash receipts on trade
receivables, to wire funds to trade suppliers and to fund the payroll
accounts, as well as to receive wire transfers of funds from outside
parties.
Note 2: This account is used primarily for collection of cash receipts on
Canadian trade receivables. Proceeds received in this account are
transferred on a regular basis to the Bank of Nova Scotia account.
Note 3: This account is used for cash receipts unrelated to trade receivables.
Note 4: This account is not active.
Note 5: This account is used for disbursements to pay trade payables by check.
The list of outstanding checks is attached to the Company's Bank
reconciliation.
Note 6: This account is used for $Cnd disbursements to pay trade payables and
salaries by check. The list of outstanding checks is attached to the
Company's Bank reconciliation.
Note 7: This account is the payroll check disbursement account. A detailed
listing of outstanding checks cannot be provided to respect the
confidentiality of the payees.
Note 8: This account is used to pay salaries by direct deposit.
Note 9: These accounts are funded by the Mellon lockbox account to pay various
taxes.
Note 10: This represents the aggregate of the terminal working fund accounts,
the funding of which are reflected as disbursements in the Schedule of Cash
Receipts & Disbursements.
Note 11: The Adjusted Bank Balance represents the Bank balance net of
Post-Petition checks in circulation. The Balance per Book represents the
bank balance net of Pre- & Post-Petition checks in circulation
(Pre-Petition checks have not yet been voided.)
In re: Matlack Systems, Inc., et al. Case No. 01-1114 (MFW)
Reporting Period: June 1, 2001 to June 30, 2001
STATEMENT OF OPERATIONS
(Income Statement)
The Statement of Operations is to be prepared on an accrual basis. The accrual
basis of accounting recognizes revenue when it is realized and expenses when
they are incurred, regardless of when cash is actually received or paid.
Current Cumulative
Month Filing to Date
REVENUES
Revenue (Net) $8,580,064 $29,808,854
========================== =======================
OPERATING EXPENSES
Owned Compensation 2,061,610 7,282,118
Leased Operator Compensation 859,031 3,707,380
Fuel Expense 635,988 2,391,872
Misc. Direct Costs 822,597 2,619,619
Cleaning Expenses 983,498 3,126,767
Mechanics Compensation 265,152 898,022
Misc. Maintenance Expense 292,145 1,275,720
Equipment Costs 1,284,149 4,168,429
Terminal Expenses (142,541) 3,251,233
-------------------------- -----------------------
TOTAL OPERATING EXPENSES 7,061,639 28,721,160
-------------------------- -----------------------
GROSS PROFIT / (LOSS) 1,518,425 1,087,694
========================== =======================
G&A EXPENSES 2,282,829 4,572,247
-------------------------- -----------------------
OPERATING PROFIT / (LOSS) (764,404) (3,484,553)
OTHER INCOME / EXPENSE
Gain/Loss on Sale of Equipment (4,012) (83,714)
Other Income/Deductions (909) (5,289)
-------------------------- -----------------------
TOTAL OTHER INCOME/EXPENSES (4,921) (89,003)
-------------------------- -----------------------
PROFIT / (LOSS) ($759,483) ($3,395,550)
========================== =======================
In re: Matlack Systems, Inc., et al. Case No. 01-1114 (MFW)
Reporting Period: June 1, 2001 to June 30, 2001
STATEMENT OF OPERATIONS - continuation sheet
Cumulative
BREAKDOWN OF "OTHER" CATEGORY Month Filing to Date
Revenue
Owned Linehaul Revenue 4,707,303 16,172,556
Owned Accessorial Revenue 899,971 3,206,952
Leased Linehaul Revenue 1,508,796 5,113,735
Leased Accessorial Revenue 201,709 595,027
Cleaning Revenue 1,016,535 4,010,147
Other Operating Revenue (5,968) (206,891)
X-Rail Revenue 177,701 643,960
Maintenance Revenue 74,017 273,368
------------------------ ----------------------
8,580,064 29,808,854
------------------------ ----------------------
Owned Compensation
Driver Pay Hourly 678,687 2,410,422
Driver Overtime Pay 8,834 30,859
Contractual Pay Mile 823,230 2,841,518
Fringe Benefits 550,859 1,999,319
------------------------ ----------------------
2,061,610 7,282,118
------------------------ ----------------------
Leased Operator Comp
Leased Operator Comp 1,148,100 3,855,388
Purchased Transportation (289,069) (148,008)
------------------------ ----------------------
859,031 3,707,380
------------------------ ----------------------
Fuel Expense
Fuel Terminal 240,266 938,898
Fuel Outside 390,664 1,421,983
Fuel Taxes 0 (3,769)
Oil and Oil Tax 5,068 34,760
------------------------ ----------------------
635,998 2,391,872
------------------------ ----------------------
Misc Direct Costs
Utility Pay Hourly 45,585 138,649
Utility Fringe Benefits 302 1,148
Tire 101,251 324,618
Hose 12,014 146,227
Meals 53,097 185,877
Lay Over 140,760 478,213
Tolls 80,390 164,757
Fines 3,567 11,331
Mileage Taxes 23,994 81,494
Insurance 361,637 1,087,305
------------------------ ----------------------
822,597 2,619,619
------------------------ ----------------------
Cleaning Expenses
Cleaners Pay 207,939 771,707
Overtime Pay 10,499 31,792
Fringe Benefits 130,755 451,791
Cleaning Supplies 119,367 474,466
Waste Treatment 281,578 681,556
Outside Contractors 208,360 641,090
Net Cleaning Interbranch 0 (1,285)
Environmental 25,000 75,650
------------------------ ----------------------
983,498 3,126,767
------------------------ ----------------------
Mechanics Compensaation
Mechanics Pay 167,024 577,028
Overtime Pay 9,915 42,162
Fringe Benefits 88,213 279,064
Net Mechanics Interbranch 0 0
------------------------ ----------------------
265,152 898,254
------------------------ ----------------------
In re: Matlack Systems, Inc., et al. Case No. 01-1114 (MFW)
Reporting Period: June 1, 2001 to June 30, 2001
STATEMENT OF OPERATIONS - continuation sheet
Cumulative
BREAKDOWN OF "OTHER" CATEGORY Month Filing to Date
Misc Maintenance Expense
Parts Expense 86,681 476,720
Outside Repairs 146,700 616,731
Tire Repair 23,507 76,512
Shop Expense 35,257 105,757
------------------------ ----------------------
292,145 1,275,720
------------------------ ----------------------
Equipment Costs
Tractor Depreciation 11,286 35,625
Tractor Rent 502,609 1,656,644
Trailer Depreciation 204,784 619,484
Trailer Rent 6,419 77,853
License 153,317 461,998
Permit 17,612 52,202
Interest 388,122 1,263,373
------------------------ ----------------------
1,284,149 4,167,179
------------------------ ----------------------
Terminal Expenses
Terminal Salary & Fringe (882,101) 556,722
Utilities 173,520 547,408
Communication Equipment 27,407 78,059
Communication Usage 137,709 358,167
Facility Maintenance 70,946 223,272
Facility Occupancy 89,912 650,409
Transportation General 240,066 837,196
------------------------ ----------------------
(142,541) 3,251,233
------------------------ ----------------------
G&A Expenses
Salaries Expense 758,387 1,821,304
Fringe Benefits (182,911) 8,537
Communications Basic 10,060 39,901
Communication Services 2,170 2,873
Facilities - Rents 53,990 175,100
General Office Supplies 1,116 20,645
IBM Supplies 489 4,147
Conventions & Seminars 6,392 18,588
Postage 14,292 68,085
Travel & Other 19,275 156,428
Outside Services 1,445,865 1,774,949
Computer Software 88 29,402
General & Admin 58,793 157,967
Marketing Promotions 2,739 4,575
Legal 5,225 28,003
Insurance 14,139 42,417
Dues & Contributions 26 361
Depreciation 23,686 71,060
Depreciation - Leasehold 8,148 24,444
Computer Equipment Rent 40,206 121,647
Other Expense/Terminal Exp. 654 1,814
------------------------ ----------------------
2,282,829 4,572,247
------------------------ ----------------------
In re: Matlack Systems, Inc., et al. Case No. 01-1114 (MFW)
Reporting Period: June 1, 2001 to June 30, 2001
BALANCE SHEET
The Balance Sheet is to be completed on an accrual basis only. Pre-petition
liabilities must be classified separately from postpetition obligations.
BOOK VALUE AT END OF BOOK VALUE ON
ASSETS CURRENT REPORTING MONTH PETITION DATE
CURRENT ASSETS
Cash $4,993,651 $389,571
Restricted Cash 656,001
Accounts Receivable (Net) 12,759,989 18,045,306
Inventories 3,364,812 3,639,142
Prepaid Expenses 1,788,991 2,108,548
------------------------------- -----------------------------
TOTAL CURRENT ASSETS 23,563,444 24,182,567
------------------------------- -----------------------------
PROPERTY AND EQUIPMENT
Revenue Equipment - Cost 95,445,170 98,199,269
Less: Accumulated Depreciation (Revenue) (73,788,474) (75,767,277)
Other Property & Equipment - Cost 71,812,517 72,633,319
Less: Accumulated Depreciation (Other) (41,341,062) (41,326,073)
------------------------------- -----------------------------
TOTAL PROPERTY & EQUIPMENT 52,128,151 53,739,238
------------------------------- -----------------------------
OTHER ASSETS
Goodwill 696,152 744,016
Other Assets 937,839 937,839
------------------------------- -----------------------------
TOTAL OTHER ASSETS 1,633,991 1,681,855
------------------------------- -----------------------------
TOTAL ASSETS $77,325,586 $79,603,660
=============================== =============================
BOOK VALUE AT END OF BOOK VALUE ON
LIABILITIES AND OWNER EQUITY CURRENT REPORTING MONTH PETITION DATE
LIABILITIES NOT SUBJECT TO COMPROMISE (Postpetition)
Accounts Payable 3,864,028
Accrued Wages & Benefits 2,409,966
Accrued Interest 1,263,373
Accrued Professional Fees (Note 1) 1,406,340
Accrued Taxes (refer to FORM MOR-4) (306,736)
Accrued Insurance, Environmental & Other (923,905)
Amounts Due to Insiders (Note 2)
------------------------------- -----------------------------
TOTAL POSTPETITION LIABILITIES 7,713,066 0
------------------------------- -----------------------------
LIABILITIES SUBJECT TO COMPROMISE (Pre-Petition)
Secured Debt 46,234,256 46,234,256
Priority Debt 3,196,647 9,330,355
Unsecured Debt 32,663,762 33,125,644
------------------------------- -----------------------------
TOTAL PRE-PETITION LIABILITIES 82,094,665 88,690,255
------------------------------- -----------------------------
------------------------------- -----------------------------
TOTAL LIABILITIES 89,807,731 88,690,255
=============================== =============================
OWNER EQUITY
Capital Stock 8,814,434 8,814,434
Capital Surplus 10,619,341 10,619,341
Retained Earnings - Pre-Petition (28,520,370) (28,520,370)
Retained Earnings - Post-Petition (3,395,550)
Postpetition Contributions (Distributions) (Draws) (attach schedule)
------------------------------- -----------------------------
NET OWNER EQUITY (12,482,145) (9,086,595)
=============================== =============================
TOTAL LIABILITIES AND OWNERS' EQUITY $77,325,586 $79,603,660
=============================== =============================
Note 2: Amounts due to insiders are included in Accounts Payables and Accrued
Wages.
In re: Matlack Systems, Inc., et al. Case No. 01-1114 (MFW)
Reporting Period: June 1, 2001 to June 30, 2001
STATUS OF POSTPETITION TAXES
The beginning tax liability should be the ending liability from the prior month
or, if this is the first report, the amount should be zero. Attach photocopies
of IRS Form 6123 or payment receipt to verify payment or deposit of federal
payroll taxes. Attach photocopies of any tax returns filed during the reporting
period.
Beginning Amount Ending
Tax Withheld Amount Date Check No. Tax
Liability or Accrued Paid Paid or EFT Liability
Federal
Withholding -519 427,918 426,085 Various EFT 1,314
FICA - Employee -259 246,313 245,353 Various EFT 701
FICA - Employer -494 246,313 245,353 Various EFT 466
Unemployment 4,083 656 4,739 0
Other 0 0 0 0
------------ ------------ ------------ ------------ ------------- ------------
Total Federal Taxes 2,811 921,200 921,530 2,481
------------ ------------ ------------ ------------ ------------- ------------
State and Local
Withholding 120,378 108,510 154,077 Various EFT 74,811
Sales 10,163 10,531 11,121 9,573
Income 0 0 0 0
Unemployment 30,079 8,462 38,541 0
Real & Personal Property 52,757 28,705 63,670 Various EFT 17,792
Other 116,563 69,656 21,862 Various EFT 164,357
------------ ------------ ------------ ------------ ------------- ------------
Total State and Local 329,940 225,864 289,271 266,533
------------ ------------ ------------ ------------ ------------- ------------
Total Taxes 332,751 1,147,064 1,210,801 269,014
------------ ------------ ------------ ------------ ------------- ------------
SUMMARY OF UNPAID POSTPETITION DEBITS
Attach aged listing of accounts payable.
Number of Days Past Due
Current 0-30 31-60 61-90 Over 90 Total
------- ---- ----- ----- ------- -----
Accounts Payable 3,864,028 0 3,864,028
Accrued Wages & Benefits 2,409,966 2,409,966
Accrued Interest 1,263,373 1,263,373
Accrued Professional Fees (Note 1) 1,406,340 1,406,340
Accrued Taxes (refer to FORM MOR-4) (306,736) (306,736)
Accrued Insurance, Environmental & (923,905) (923,905)
Other
------------ ------------ ------------ ------------ ------------- ------------
7,713,066 0 0 0 7,713,066
------------ ------------ ------------ ------------ ------------- ------------
Explain how and when the Debtor intends to pay any past-due postpetition debts.
In re: Matlack Systems, Inc., et al. Case No. 01-1114 (MFW)
Reporting Period: June 1, 2001 to June 30, 2001
ACCOUNTS RECEIVABLE RECONCILIATION AND AGING
Accounts Receivable Reconciliation Amount
Total Accounts Receivable at the beginning of the reporting period $13,696,705
+ Amounts billed during the period 9,198,148 (Note 1)
- Amounts collected during the period (9,500,944)
- Bad Debt and other write-offs (483,707)
+ Change in Reserve 549,306
- Other during the period (699,520)
--------
Total Accounts Receivable at the end of the reporting period $12,759,989
===========
Accounts Receivable Aging Amount
0 - 30 days old 10,452,747
31 - 60 days old 2,450,878
61 - 90 days old 974,287
91 + days old 1,956,993
---------
Total Accounts Receivable 15,834,905
Foreign exchange, Revenue Recognition, Sales Accrual Adjustments and 892,919
Write-offs
Amount considered uncollectible (Bad Debt) (3,967,835)
-----------
Accounts Receivable (Net) 12,759,989
===========
DEBTOR QUESTIONNAIRE
Must be completed each month Yes No
1. Have any assets been sold or transferred outside the normal course X
of business this reporting period? If yes, provide an explanation
below.
2 Have any funds been disbursed from any account other than a debtor X
in possession account this reporting period? If yes, provide an
explanation below.
3. Have all postpetition tax returns been timely filed? If no, X
provide an explanation below.
4. Are workers compensation, general liability and other necessary X
insurance coverages in effect? If no, provide an explanation below.
Note 1: This amount differs from the Revenue reported on MOR-2 due to the sales
tax and foreign exchange posted to the G/L.
Exhibit (d)1
UNITED STATES BANKRUPTCY COURT
DISTRICT OF DELAWARE
In re: Matlack Systems, Inc., et al. Case No. 01-1114 (MFW)
Reporting Period: July 1, 2001 to July 31, 2001
MONTHLY OPERATING REPORT
File with Court and submit copy to United States Trustee within 20 days
after end of month
Document Explanation
REQUIRED DOCUMENTS Form No. Attached Attached
Schedule of Cash Receipts and Disbursements MOR-1 Yes
Bank Reconciliation (or copies of debtor's bank reconciliations) MOR-1 (CON'T) Yes Note 1
Copies of bank statements No Note 2
Cash disbursements journals No Note 3
Statement of Operations MOR-2 Yes
Balance Sheet MOR-3 Yes
Status of Postpetition Taxes MOR-4 Yes
Copies of IRS Form 6123 or payment receipt No N/A
Copies of tax returns filed during reporting period No Note 2
Summary of Unpaid Postpetition Debts MOR-4 Yes
Listing of aged accounts payable No Note 3
Accounts Receivable Reconciliation and Aging MOR-5 Yes
Debtor Questionnaire MOR-5 Yes
I declare under penalty of perjury (28 U.S.C. Section 1746) that this report
and the attached documents are true and correct to the best of my knowledge and
belief.
-------------------------------- ----------------------
Signature of Debtor Date
-------------------------------- ----------------------
Signature of Joint Debtor Date
/s/ Patrick J. Bagley August 21, 2001
-------------------------------- ----------------------
Signature of Authorized Individual* Date
Patrick J. Bagley Chief Financial Officer
-------=------------------------ ------------------------------
Printed Name of Authorized Individual Title of Authorized Individual
Note 1: Detailed bank reconciliations available upon request.
Note 2: Tax returns relating to the Post-Petition available upon request.
Note 3: Aged accounts receivable listing available upon request.
In re: Matlack Systems, Inc., et al. Case No. 01-1114 (MFW)
Reporting Period: July 1, 2001 to July 31, 2001
SCHEDULE OF CASH RECEIPTS AND DISBURSEMENTS
Amounts reported should be per the debtor's books, not the bank statement. The
beginning cash should be the ending cash from the prior month or, if this is the
first report, the amount should be the balance on the date the petition was
filed. The amounts reported in the "CURRENT MONTH - ACTUAL" column must equal
the sum of the four bank account columns. The amounts reported in the
"PROJECTED" columns should be taken from the SMALL BUSINESS INITIAL REPORT (FORM
IR-1). Attach copies of the bank statements and the cash disbursements journal.
The total disbursements listed in the disbursements journal must equal the total
disbursements reported on this page. A bank reconciliation must be attached for
each account. [See MOR-1 (CON'T)]
BANK ACCOUNTS For the Current Period
July 1, 2001 to July 31, 2001 Cumulative Since Filing
OPERATING PAYROLL & TAX Actual Projected Actual Projected
(Note 1)
Cash Receipts
Collection of Accounts Receivable $9,088,622 $9,088,622 $9,177,400 $44,332,572 $43,635,400
Other 51,908 51,908 232,000 315,799 307,000
-------------- --------------- -------------- --------------- ------------- ------------
Total Cash Receipts 9,140,530 0 9,140,530 9,409,400 44,648,371 43,942,400
-------------- --------------- -------------- --------------- ------------- ------------
- -
Cash Disbursements
Total Payroll 465,768 3,636,193 4,101,961 4,063,000 18,022,346 18,458,200
Leased Operators 746,085 746,085 722,800 4,197,144 4,349,800
Operating Expenses
Fuel 596,256 596,256 795,000 4,224,679 4,686,000
Occupancy costs 275,377 275,377 289,000 1,167,877 1,410,600
Equipment Costs 813,490 813,490 802,200 1,453,399 1,676,000
Insurance 900,152 900,152 1,009,000 4,362,536 4,911,800
Other Operating Expenses 1,659,060 1,659,060 1,918,800 6,595,260 8,407,799
-------------- --------------- -------------- --------------- ------------- ------------
Total Operating Expenses 4,244,336 - 4,244,335 4,814,000 17,803,751 21,092,199
Deposits with Key Vendors - - - 41,148 150,000
CAPEX - Equipment Refurbishment - - - 13,050 399,200
Deferred Rental and Leasing Costs - - - 63,789 1,414,000
Restructuring Costs 473,907 473,907 1,036,400 696,910 2,988,400
Remittance of Equipment Sales
Proceeds to Secured Lender - - 241,001 -
Inter-Account Transfer 3,636,193 (3,636,193)
-------------- --------------- -- -------------- --------------- --- ------------- ------------
Total Disbursements 9,566,288 - 9,566,288 10,636,200 41,079,139 48,851,799
-------------- --------------- -- -------------- --------------- --- ------------- ------------
Net Cash Flow/Requirements (425,758) - (425,758) (1,226,800) 3,569,232 (4,909,399)
Opening Cash 4,901,673 - 4,910,673 (2,365,598) 915,683 1,317,000
-------------- --------------- -- -------------- --------------- --- ------------- ------------
Closing Cash $4,484,915 - 4,484,915 (3,592,398) 4,484,915 (3,592,399)
============== =============== == ============== =============== === ============= ============
THE FOLLOWING SECTION MUST BE COMPLETED
DISBURSEMENTS FOR CALCULATING U.S. TRUSTEE QUARTERLY FEES: (FROM CURRENT MOONTH ACTUAL COLUMN)
Q1 Q2 Q3
-- -- --
TOTAL DISBURSEMENTS $ 150,000 $31,512,851 $ 9,566,288
LESS: TRANSFERS TO DEBTOR IN POSSESSION ACCOUNTS 0 0 0
PLUS: ESTATE DISBURSEMENTS MADE BY OUTSIDE SOURCES (i.e. from escrow accounts) 0 0 0
--------------- --- ------------- ------------
TOTAL DISBURSEMENTS FOR CALCULATING U.S. TRUSTEE QUARTERLY FEES $ 150,000 $31,512,851 $ 9,566,288
=============== === ============= ============
Note 1: The Operating Account represents the aggregate of the Company's
operating accounts including $US & $Cnd Disbursement & Lockbox accounts
In re: Matlack Systems, Inc., et al. Case No. 01-1114 (MFW)
Reporting Period: July 1, 2001 to July 31, 2001
BANK RECONCILIATIONS
Continuation Sheet for MOR-1
A bank reconciliation must be included for each bank account. The debtor's
bank reconciliation may be substituted for this page.
Expressed in USD Expressed in USD
Converted @ Converted @
1:1.5591 1:1.5591
------------------------------------------------------------------------------------
1 2 3 4 5 6
Operating Operating Operating Operating Operating Operating
(Mellon (Mellon Canada (Mellon DE) (First Union) (Mellon) (Bank of Nova
Lockbox) Lockbox) #8016-376-9 #2000032632253#0090907 Scotia)
#145-2480 #01-600052 Note 3 Note 4 Note 5 #00820-15
Note 1 Note 2 Note 6
------------------------------------------------------------------------------------
BALANCE PER BOOKS $4,659,266 $84,884 $617,344 $10,956 ($1,222,724) $114,488
-------------------------------------------------------------------------------------------------------------
BANK BALANCE $4,659,698 $86,309 $279,214 $10,969 $0 $202,097
(+) DEPOSITS IN TRANSIT $0 $0 $0 $0 $0 $0
(-) OUTSTANDING CHECKS ($733,680) $0 $0 $0 $0 ($19,692)
OTHER $0 $0 $0 $0 $0 $0
------------------------------------------------------------------------------------
ADJUSTED BANK BALANCE* $3,926,018 $86,309 $279,214 $10,969 $0 $182,405
------------------------------------------------------------------------------------
*Adjusted bank balance
must equal balance per books
(see Note 11)
DEPOSITS IN TRANSIT None None None None None None
CHECKS OUTSTANDING Yes None None None None Yes
-------------------------------------------------------------------------------
7 8 9 10 11 12
Payroll Payroll Tax Tax Tax Matlack
(Mellon) (Mellon) Prefunding Prefunding Prefunding Inc.
#119-812 #021-8376 Mellon Mellon Mellon Working
Note 7 Note 8 #021-81812 #021-8309 #021-8931 Funds Grand
Note 9 Note 9 Note 9 Note 10 Total
-------------------------------------------------------------------------------
$795,840 $0 $0 $686 $0 $75,776 $5,136,516
-------------------------------------------------------------------------------
$320,249 $14,543 $686 $0 $0 $5,573,764
$0
($320,249) ($14,543) $686 ($1,088,850)
$0
-------------------------------------------------------------------------------
$0 $0 $0 $0 $0 $0 $4,484,915
-------------------------------------------------------------------------------
(NOTE 11)
None None None None None None
ALL ALL None None None None
OTHER
Note 1: This account is used primarily for collection of cash receipts on trade
receivables, to wire funds to trade suppliers and to fund the payroll
accounts, as well as to receive wire transfers of funds from outside
parties.
Note 2: This account is used primarily for collection of cash receipts on
Canadian trade receivables. Proceeds received in this account are
transferred on a regular basis to the Bank of Nova Scotia account.
Note 3: This account is used for cash receipts unrelated to trade receivables.
Note 4: This account is not active.
Note 5: This account is used for disbursements to pay trade payables by check.
The list of outstanding checks is attached to the Company's Bank
reconciliation.
Note 6: This account is used for $Cnd disbursements to pay trade payables and
salaries by check. The list of outstanding checks is attached to the
Company's Bank reconciliation.
Note 7: This account is the payroll check disbursement account. A detailed
listing of outstanding checks cannot be provided to respect the
confidentiality of the payees.
Note 8: This account is used to pay salaries by direct deposit.
Note 9: These accounts are funded by the Mellon lockbox account to pay various
taxes.
Note 10: This represents the aggregate of the terminal working fund accounts,
the funding of which are reflected as disbursements in the Schedule of Cash
Receipts & Disbursements.
Note 11: The Adjusted Bank Balance represents the Bank balance net of
Post-Petition checks in circulation. The Balance per Book represents the
bank balance net of Pre- & Post-Petition checks in circulation
(Pre-Petition checks have not yet been voided.)
In re: Matlack Systems, Inc., et al. Case No. 01-1114 (MFW)
Reporting Period: July 1, 2001 to July 31, 2001
STATEMENT OF OPERATIONS
(Income Statement)
The Statement of Operations is to be prepared on an accrual basis. The accrual
basis of accounting recognizes revenue when it is realized and expenses when
they are incurred, regardless of when cash is actually received or paid.
Current Cumulative
Month Filing to Date
REVENUES
Revenue (Net) $6,448,628 $36,257,482
========================== =======================
OPERATING EXPENSES
Owned Compensation 1,929,847 9,211,965
Leased Operator Compensation 951,712 4,659,092
Fuel Expense 344,609 2,736,481
Misc. Direct Costs 645,608 3,265,227
Cleaning Expenses 794,845 3,921,612
Mechanics Compensation 292,735 1,190,757
Misc. Maintenance Expense 235,785 1,511,505
Equipment Costs 1,247,738 5,416,167
Terminal Expenses 1,322,693 4,573,926
-------------------------- -----------------------
TOTAL OPERATING EXPENSES 7,765,572 36,486,732
-------------------------- -----------------------
GROSS PROFIT / (LOSS) (1,316,944) (229,250)
========================== =======================
G&A EXPENSES 1,024,081 5,596,328
-------------------------- -----------------------
OPERATING PROFIT / (LOSS) (2,341,025) (5,825,578)
OTHER INCOME / EXPENSE
Gain/Loss on Sale of Equipment 139,371 55,657
Other Income/Deductions (3,449) (8,738)
-------------------------- -----------------------
TOTAL OTHER INCOME/EXPENSES 135,922 46,919
-------------------------- -----------------------
PROFIT / (LOSS) ($2,476,947) ($5,872,497)
========================== =======================
In re: Matlack Systems, Inc., et al. Case No. 01-1114 (MFW)
Reporting Period: July 1, 2001 to July 31, 2001
STATEMENT OF OPERATIONS - continuation sheet
Cumulative
BREAKDOWN OF "OTHER" CATEGORY Month Filing to Date
Revenue
Owned Linehaul Revenue 3,299,891 19,472,447
Owned Accessorial Revenue 832,075 4,039,027
Leased Linehaul Revenue 1,049,497 6,163,232
Leased Accessorial Revenue 141,007 736,034
Cleaning Revenue 825,187 4,835,334
Other Operating Revenue (3,522) (210,413)
X-Rail Revenue 256,890 900,850
Maintenance Revenue 47,603 320,971
------------------------ ----------------------
6,448,628 36,257,482
------------------------ ----------------------
Owned Compensation
Driver Pay Hourly 701,286 3,111,708
Driver Overtime Pay 3,599 34,458
Contractual Pay Mile 686,751 3,528,269
Fringe Benefits 538,211 2,537,530
------------------------ ----------------------
1,929,847 9,211,965
------------------------ ----------------------
Leased Operator Comp
Leased Operator Comp 885,104 4,740,492
Purchased Transportation 66,608 (81,400)
------------------------ ----------------------
951,712 4,659,092
------------------------ ----------------------
Fuel Expense
Fuel Terminal 152,692 1,091,454
Fuel Outside 188,051 1,610,034
Fuel Taxes 0 (3,769)
Oil and Oil Tax 3,866 38,626
------------------------ ----------------------
344,609 2,736,481
------------------------ ----------------------
Misc Direct Costs
Utility Pay Hourly 48,805 187,454
Utility Fringe Benefits 6,319 7,467
Tire 75,863 400,481
Hose 13,032 159,259
Meals 24,192 210,069
Lay Over 74,092 552,305
Tolls 28,649 193,406
Fines 1,215 12,546
Mileage Taxes 21,000 102,494
Insurance 352,441 1,439,746
------------------------ ----------------------
645,608 3,265,227
------------------------ ----------------------
Cleaning Expenses
Cleaners Pay 215,149 986,856
Overtime Pay 11,918 43,710
Fringe Benefits 142,171 593,962
Cleaning Supplies 173,949 648,415
Waste Treatment 95,055 776,611
Outside Contractors 131,691 772,781
Net Cleaning Interbranch 0 (1,285)
Environmental 24,912 100,562
------------------------ ----------------------
794,845 3,912,612
------------------------ ----------------------
Mechanics Compensaation
Mechanics Pay 176,327 753,355
Overtime Pay 13,644 55,806
Fringe Benefits 102,764 381,828
Net Mechanics Interbranch 0 0
------------------------ ----------------------
292,735 1,190,989
------------------------ ----------------------
In re: Matlack Systems, Inc., et al. Case No. 01-1114 (MFW)
Reporting Period: July 1, 2001 to July 31, 2001
STATEMENT OF OPERATIONS - continuation sheet
Cumulative
BREAKDOWN OF "OTHER" CATEGORY Month Filing to Date
Misc Maintenance Expense
Parts Expense 108,221 584,941
Outside Repairs 94,814 711,545
Tire Repair 9,061 85,573
Shop Expense 23,689 129,446
------------------------ ----------------------
235,785 1,511,505
------------------------ ----------------------
Equipment Costs
Tractor Depreciation 11,491 47,116
Tractor Rent 466,140 2,122,784
Trailer Depreciation 203,059 822,543
Trailer Rent 10,179 88,032
License 149,895 611,893
Permit 15,780 67,982
Interest 391,194 1,654,567
------------------------ ----------------------
1,247,738 5,414,917
------------------------ ----------------------
Terminal Expenses
Terminal Salary & Fringe 440,959 997,681
Utilities 170,045 717,453
Communication Equipment 22,819 100,878
Communication Usage 90,932 449,099
Facility Maintenance 41,598 264,870
Facility Occupancy 302,729 953,138
Transportation General 253,611 1,090,807
------------------------ ----------------------
1,322,693 4,573,926
------------------------ ----------------------
G&A Expenses
Salaries Expense 494,404 2,315,708
Fringe Benefits 50,796 59,333
Communications Basic 23,940 63,841
Communication Services 65 2,938
Facilities - Rents 76,610 251,710
General Office Supplies 2,568 23,213
IBM Supplies 0 4,147
Conventions & Seminars (4,266) 14,322
Postage 4,898 72,983
Travel & Other 9,341 165,769
Outside Services 131,836 1,906,785
Computer Software 1,603 31,005
General & Admin 27,016 184,983
Marketing Promotions 0 4,575
Legal 6,413 34,416
Insurance 14,139 56,556
Dues & Contributions 0 361
Depreciation 23,640 94,700
Depreciation - Leasehold 8,148 32,592
Computer Equipment Rent 152,276 273,923
Other Expense/Terminal Exp. 654 2,468
------------------------ ----------------------
1,024,081 5,596,328
------------------------ ----------------------
In re: Matlack Systems, Inc., et al. Case No. 01-1114 (MFW)
Reporting Period: July 1, 2001 to July 31, 2001
BALANCE SHEET
The Balance Sheet is to be completed on an accrual basis only. Pre-petition
liabilities must be classified separately from postpetition obligations.
BOOK VALUE AT END OF BOOK VALUE ON
ASSETS CURRENT REPORTING MONTH PETITION DATE
CURRENT ASSETS
Cash $5,136,516 $389,571
Restricted Cash 656,001
Accounts Receivable (Net) 9,775,477 18,045,306
Inventories 3,293,357 3,639,142
Prepaid Expenses 1,494,749 2,108,548
-------------------------------- ------------------------------
TOTAL CURRENT ASSETS 20,356,100 24,182,567
-------------------------------- ------------------------------
PROPERTY AND EQUIPMENT
Revenue Equipment - Cost 94,379,467 98,199,269
Less: Accumulated Depreciation (Revenue) (73,218,594) (75,767,277)
Other Property & Equipment - Cost 71,812,517 72,633,319
Less: Accumulated Depreciation (Other) (41,466,335) (41,326,073)
-------------------------------- ------------------------------
TOTAL PROPERTY & EQUIPMENT 51,507,055 53,739,238
-------------------------------- ------------------------------
OTHER ASSETS
Goodwill 680,197 744,016
Other Assets 937,839 937,839
-------------------------------- ------------------------------
TOTAL OTHER ASSETS 1,618,036 1,681,855
-------------------------------- ------------------------------
TOTAL ASSETS $73,481,191 $79,603,660
-------------------------------- ------------------------------
BOOK VALUE AT END OF BOOK VALUE ON
LIABILITIES AND OWNER EQUITY CURRENT REPORTING MONTH PETITION DATE
LIABILITIES NOT SUBJECT TO COMPROMISE
(Postpetition)
Accounts Payable 3,890,230
Accrued Wages & Benefits 2,647,554
Accrued Interest 1,654,566
Accrued Professional Fees 1,224,827
Accrued Taxes (refer to FORM MOR-4) 98,924
Accrued Insurance, Environmental & Other (1,324,666)
Amounts Due to Insiders (Note 1)
-------------------------------- ------------------------------
TOTAL POSTPETITION LIABILITIES 8,191,435 0
-------------------------------- ------------------------------
LIABILITIES SUBJECT TO COMPROMISE (Pre-Petition)
Secured Debt 46,234,256 46,234,256
Priority Debt 1,832,000 9,330,355
Unsecured Debt 32,182,592 33,125,644
-------------------------------- ------------------------------
TOTAL PRE-PETITION LIABILITIES 80,248,848 88,690,255
-------------------------------- ------------------------------
-------------------------------- ------------------------------
TOTAL LIABILITIES 88,440,283 88,690,255
-------------------------------- ------------------------------
OWNER EQUITY
Capital Stock 8,814,434 8,814,434
Capital Surplus 10,619,341 10,619,341
Retained Earnings - Pre-Petition (28,520,370) (28,520,370)
Retained Earnings - Post-Petition (5,872,497)
Postpetition Contributions (Distributions) (Draws) (attach schedule)
-------------------------------- ------------------------------
NET OWNER EQUITY (14,959,092) (9,086,595)
-------------------------------- ------------------------------
TOTAL LIABILITIES AND OWNERS' EQUITY $73,481,191 $79,603,660
-------------------------------- ------------------------------
Note 1: Amounts due to insiders are included in Accounts Payables and Accrued
Wages.
In re: Matlack Systems, Inc., et al. Case No. 01-1114 (MFW)
Reporting Period: July 1, 2001 to July 31, 2001
STATUS OF POSTPETITION TAXES
The beginning tax liability should be the ending liability from the prior month
or, if this is the first report, the amount should be zero. Attach photocopies
of IRS Form 6123 or payment receipt to verify payment or deposit of federal
payroll taxes. Attach photocopies of any tax returns filed during the reporting
period.
Beginning Amount Ending
Tax Withheld Amount Date Check No. Tax
Liability or Accrued Paid Paid or EFT Liability
Federal
Withholding 1,314 492,547 448,701 Various EFT 45,160
FICA - Employee 701 282,316 254,409 Various EFT 28,608
FICA - Employer 466 282,315 254,409 Various EFT 28,372
Unemployment 0 443 0 443
Other 0 0 0 0
------------ ------------ ------------ ------------ ------------- ------------
Total Federal Taxes 2,481 1,057,621 957,519 102,583
------------ ------------ ------------ ------------ ------------- ------------
State and Local
Withholding 74,811 108,510 154,077 Various EFT 29,244
Sales 9,573 76,729 10,531 Various 75,771
Income 0 0 0 0
Unemployment 0 9,662 0 9,662
Real & Personal Property 17,792 285,564 1,346 Various 302,010
Other 164,357 347,012 104,982 Various 406,387
------------ ------------ ------------ ------------ ------------- ------------
Total State and Local 266,533 827,477 270,936 823,074
------------ ------------ ------------ ------------ ------------- ------------
Total Taxes 269,014 1,885,098 1,228,455 925,657
------------ ------------ ------------ ------------ ------------- ------------
SUMMARY OF UNPAID POSTPETITION DEBITS
Attach aged listing of accounts payable.
Number of Days Past Due
Current 0-30 31-60 61-90 Over 90 Total
------- ---- ----- ----- ------- -----
Accounts Payable 3,890,230 0 3,890,230
Accrued Wages & Benefits 2,647,554 2,647,554
Accrued Interest 1,654,566 1,654,566
Accrued Professional Fees (Note 1) 1,224,827 1,224,827
Accrued Taxes (refer to FORM MOR-4) 98,924 98,924
Accrued Insurance, Environmental & (1,324,666) (1,324,666)
Other
------------ ------------ ------------ ------------ ------------- ------------
8,191,435 0 0 0 8,191,435
------------ ------------ ------------ ------------ ------------- ------------
Explain how and when the Debtor intends to pay any past-due postpetition debts.
In re: Matlack Systems, Inc., et al. Case No. 01-1114 (MFW)
Reporting Period: July 1, 2001 to July 31, 2001
ACCOUNTS RECEIVABLE RECONCILIATION AND AGING
Accounts Receivable Reconciliation Amount
Total Accounts Receivable at the beginning of the reporting period $12,759,989
+ Amounts billed during the period 6,576,525 (Note 1)
- Amounts collected during the period (9,088,622)
- Bad Debt and other write-offs (561,187)
+ Change in Reserve 717,835
- Other during the period (629,063)
--------
Total Accounts Receivable at the end of the reporting period $9,775,477
==========
Accounts Receivable Aging Amount
0 - 30 days old 7,440,919
31 - 60 days old 2,222,752
61 - 90 days old 946,771
91 + days old 1,714,242
---------
12,324,684
Foreign exchange, Revenue Recognition, Sales Accrual Adjustments and 879,367
Write-offs
Amount considered uncollectible (Bad Debt) (3,428,574)
-----------
Accounts Receivable (Net) 9,775,477
=========
DEBTOR QUESTIONNAIRE
Must be completed each month Yes No
1. Have any assets been sold or transferred outside the normal course X
of business this reporting period? If yes, provide an explanation
below.
2 Have any funds been disbursed from any account other than a debtor X
in possession account this reporting period? If yes, provide an
explanation below.
3. Have all postpetition tax returns been timely filed? If no, X
provide an explanation below.
4. Are workers compensation, general liability and other necessary X
insurance coverages in effect? If no, provide an explanation below.
Note 1: This amount differs from the Revenue reported on MOR-2 due to the sales
tax and foreign exchange posted to the G/L.