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 23, 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 Report for the period from August 1, 2001 to
August 31, 2001, which 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).
Item 7. Financial Statements, Pro Forma Financial Information, and Exhibits.
(c) Exhibits:
99(e) Monthly Operating Report for the period from August 1, 2001
to August 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 30, 2001 By:/s/ Patrick J. Bagley
----------------------------------
Patrick J. Bagley
Vice President-Finance & Treasurer
EXHIBIT INDEX
Exhibit No. Description
----------- -----------
99(e) Monthly Operating Report for the period from August 1, 2001 to
August 31, 2001.
Exhibit 99 (e)
UNITED STATES BANKRUPTCY COURT
DISTRICT OF DELAWARE
In re: Matlack Systems, Inc., et al. Case No. 01-1114 (MFW)
Reporting Period: August 1, 2001 to August 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
Cash disbursements journals No
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 October 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 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: August 1, 2001 to August 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 Aug. 1, 2001 to Aug.
31, 2001
OPERATING PAYROLL & TAX Actual Projected
(Note 1)
Cash Receipts
Collection of Accounts Receivable $ 7,345,581 $ 7,345,581 $ 8,042,600
Other 696,634 696,634 536,000
-------------- --------------- -------------- ---------------
Total Cash Receipts 8,042,215 0 8,042,215 8,578,600
-------------- --------------- -------------- ---------------
-
Cash Disbursements
Total Payroll 138,174 2,843,797 2,981,971 2,900,000
Leased Operators 583,439 583,439 515,200
Operating Expenses
Fuel 38,212 38,212 351,000
Occupancy costs 274,224 274,224 232,500
Equipment Costs 309,219 309,219 544,800
Insurance 786,076 786,076 785,000
Other Operating Expenses 1,018,808 1,018,808 1,424,200
-------------- --------------- -------------- ---------------
Total Operating Expenses 2,426,539 - 2,426,539 3,337,500
Deposits with Key Vendors - - -
CAPEX - Equipment Refurbishment - - -
Deferred Rental and Leasing Costs - - -
Restructuring Costs 779,761 779,761 1,093,200
Remittance of Equipment Sales 634,710 634,710
Proceeds to Secured Lender
Inter - Account Transfer 2,843,797 (2,843,797)
-------------- --------------- -------------- ---------------
Total Disbursements 7,406,420 - 7,406,420 7,845,900
-------------- --------------- -------------- ---------------
Net Cash Flow/Requirements 635,795 - 635,795 732,700
Opening Cash 4,484,915 - 4,484,915 (3,592,398)
-------------- --------------- -------------- ---------------
Closing Cash $ 5,120,710 $ - $ 5,120,710 $ (2,859,698)
============== =============== ============== ===============
Cumulative Since Filing
Actual Projected
$ 51,678,154 $ 51,678,000
1,012,433 843,000
------------ -------------
52,690,587 52,521,000
------------ -------------
-
21,004,318 21,358,200
4,780,583 4,865,000
4,262,891 5,037,000
1,442,101 1,643,100
1,762,618 2,220,800
5,148,612 5,696,800
7,614,068 9,831,998
------------ -------------
20,230,290 24,429,698
41,148 150,000
13,050 399,200
63,789 1,414,000
1,476,671 4,081,600
875,711 -
------------ -------------
48,485,560 56,697,698
------------ -------------
4,205,027 (4,176,698)
915,683 1,317,000
------------ --------------
$ 5,120,710 $ (2,859,698)
============ ==============
THE FOLLOWING SECTION MUST BE COMPLETED
DISBURSEMENTS FOR CALCULATING U.S. TRUSTEE QUARTERLY FEES: (FROM CURRENT MONTH ACTUAL COLUMN)
Q1 Q2 Q3
-- -- --
TOTAL DISBURSEMENTS $ 150,000 $ 31,512,851 $ 16,822,709
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 $ 16,822,709
============ =============== ===============
Note 1: The Operating Account represents the aggregate of the Company's
operating accounts including $US & $Cnd Disbursement and Lockbox accounts.
In re: Matlack Systems, Inc., et al. Case No. 01-1114 (MFW)
Reporting Period: August 1, 2001 to August 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
Expressed in USD USD
Converted @ Converted @
1:1.51 1:1.1.51
--------------------------------------------------------------------------------------
1 2 3 4 5 6
Operating Operating Operating
(Mellon (Mellon Canada Operating Operating Operating (Bank of Nova
Lockbox) Lockbox) (Mellon DE) (First Union) (Mellon) Scotia)
#145-2480 #01-600052 #8016-376-9 #2000032632253 #0090907 #00820-15
Note 1 Note 2 Note 3 Note 4 Note 5 Note 6
--------------------------------------------------------------------------------------
BALANCE PER $4,314,229 $43,413 $294,535 $10,944 ($977,219) ($62,368)
BOOKS
----------------------------------------------------------------------------------------------------
BANK BALANCE $4,316,492 $25,624 $1,156,854 $10,956 $0 $16,410
(+) DEPOSITS $0 $0 $0 $0 $0 $0
IN TRANSIT
(-)
OUTSTANDING ($378,547) $0 $0 $0 $0 ($27,079)
CHECKS
OTHER $0 $0 $0 $0 $0 $0
--------------------------------------------------------------------------------------
ADJUSTED $3,937,945 $25,624 $1,156,854 $10,956 $0 ($10,669)
BANK BALANCE*
--------------------------------------------------------------------------------------
*Adjusted
bank balance
must equal
balance
per books
(see Note 11)
DEPOSITS IN None None None None None None
TRANSIT
CHECKS Yes None None None None Yes
OUTSTANDING
--------------------------------------------------------------------------------
7 8 9 10 11 12
Tax Tax Tax Matlack
Payroll Payroll Prefunding Prefunding Prefunding Inc.
(Mellon) (Mellon) Mellon Mellon Mellon Working
#119-8127 #021-8376 #021-81812 #021-8309 #021-8931 Funds
Note 7 Note 8 Note 9 Note 9 Note 9 Note 10 Grand Total
--------------------------------------------------------------------------------
$668,172 $0 $202 $0 $0 $56,988 $4,348,896
--------------------------------------------------------------------------------
$210,288 $18,266 0 $0 $0 $5,754,890
$0
($210,288) ($18,266) ($634,180)
$0
--------------------------------------------------------------------------------
$0 $0 $0 $0 $0 $0 $5,120,710
--------------------------------------------------------------------------------
(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: August 1, 2001 to August 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) $2,194,463 $38,451,945
------------------------- ------------------------
OPERATING EXPENSES
Owned Compensation 167,353 9,379,318
Leased Operator Compensation 358,530 5,017,622
Fuel Expense 289,760 3,026,241
Misc. Direct Costs 390,779 3,656,006
Cleaning Expenses 329,512 4,251,124
Mechanics Compensation 35,260 1,226,017
Misc. Maintenance Expense 111,966 1,623,471
Equipment Costs 1,065,713 6,481,880
Terminal Expenses 1,016,627 5,590,553
------------------------- ------------------------
TOTAL OPERATING EXPENSES 3,765,500 40,252,232
------------------------- ------------------------
GROSS PROFIT / (LOSS) (1,571,037) (1,800,287)
------------------------- ------------------------
G&A EXPENSES 1,212,387 6,808,715
------------------------- ------------------------
OPERATING PROFIT / (LOSS) (2,783,424) (8,609,002)
OTHER INCOME / EXPENSE
Gain/Loss on Sale of Equipment (362,515) (306,858)
Other Income/Deductions 0 (8,738)
------------------------- ------------------------
TOTAL OTHER INCOME/EXPENSES (362,515) (315,596)
------------------------- ------------------------
PROFIT / (LOSS) ($2,420,909) ($8,293,406)
------------------------- ------------------------
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 563,259 20,035,706
Owned Accessorial Revenue 438,041 4,477,068
Leased Linehaul Revenue 702,702 6,865,934
Leased Accessorial Revenue 38,338 774,372
Cleaning Revenue 134,893 4,970,227
Other Operating Revenue 228,867 18,454
X-Rail Revenue 85,335 986,185
Maintenance Revenue 3,028 323,999
------------------------ ----------------------
2,194,463 38,451,945
------------------------ ----------------------
Owned Compensation
Driver Pay Hourly (15,832) 3,095,876
Driver Overtime Pay (338) 34,120
Contractual Pay Mile (3,374) 3,524,895
Fringe Benefits 186,897 2,724,427
------------------------ ----------------------
167,353 9,379,318
------------------------ ----------------------
Leased Operator Comp
Leased Operator Comp 194,369 4,934,861
Purchased Transportation 164,161 82,761
------------------------ ----------------------
358,530 5,017,622
------------------------ ----------------------
Fuel Expense
Fuel Terminal 50,278 1,141,868
Fuel Outside 233,348 1,843,382
Fuel Taxes 6,134 2,365
Oil and Oil Tax 0 38,626
------------------------ ----------------------
289,760 3,026,241
------------------------ ----------------------
Misc Direct Costs
Utility Pay Hourly 15,765 203,219
Utility Fringe Benefits 435 7,902
Tire 611 401,092
Hose 2,488 161,747
Meals 16,216 226,285
Lay Over 52,876 605,181
Tolls 14,163 207,569
Fines 911 13,457
Mileage Taxes 10,000 112,494
Insurance 277,314 1,717,060
------------------------ ----------------------
390,779 3,656,006
------------------------ ----------------------
Cleaning Expenses
Cleaners Pay 43,839 1,030,695
Overtime Pay (1,450) 42,260
Fringe Benefits 41,909 635,871
Cleaning Supplies 47,229 695,644
Waste Treatment 126,756 903,367
Outside Contractors 71,229 844,010
Net Cleaning Interbranch 0 (1,285)
Environmental 0 100,562
------------------------ ----------------------
359,512 4,251,124
------------------------ ----------------------
Mechanics Compensation
Mechanics Pay 15,344 768,699
Overtime Pay (1,982) 53,824
Fringe Benefits 21,917 403,745
Net Mechanics Interbranch (19) (19)
------------------------ ----------------------
35,260 1,226,249
------------------------ ----------------------
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 21,785 606,726
Outside Repairs 59,646 771,191
Tire Repair 20,351 105,924
Shop Expense 10,184 139,630
------------------------ ----------------------
111,969 1,623,471
------------------------ ----------------------
Equipment Costs
Tractor Depreciation 10,058 57,174
Tractor Rent 276,646 2,397,430
Trailer Depreciation 194,501 1,017,044
Trailer Rent 0 88,032
License 183,399 795,292
Permit 15,210 83,192
Interest 387,899 2,042,466
------------------------ ----------------------
1,065,713 6,480,630
------------------------ ----------------------
Terminal Expenses
Terminal Salary & Fringe 272,162 1,269,843
Utilities 92,190 809,643
Communication Equipment 946 101,824
Communication Usage 138,847 587,946
Facility Maintenance 26,993 291,863
Facility Occupancy 277,509 1,230,647
Transportation General 207,980 1,298,787
------------------------ ----------------------
1,016,627 5,590,553
------------------------ ----------------------
G&A Expenses
Salaries Expense 639,156 2,954,864
Fringe Benefits 47,893 107,226
Communications Basic 9,724 73,565
Communication Services 0 2,938
Facilities - Rents 41,316 293,026
General Office Supplies 315 23,528
IBM Supplies 0 4,147
Conventions & Seminars 0 14,322
Postage 6,297 79,280
Travel & Other 2,963 168,732
Outside Services 38,568 1,945,353
Computer Software 4,789 35,794
General & Admin 3,585 188,568
Marketing Promotions 0 4,575
Legal 140,642 175,058
Insurance 209,617 266,173
Dues & Contributions 0 361
Depreciation 23,639 118,339
Depreciation - Leasehold 8,148 40,740
Computer Equipment Rent 35,081 309,004
Other Expense/Terminal Exp. 654 3,122
------------------------ ----------------------
1,212,387 6,808,715
------------------------ ----------------------
In re: Matlack Systems, Inc., et al. Case No. 01-1114 (MFW)
Reporting Period: August 1, 2001 to August 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 $4,348,896 $389,571
Restricted Cash 1,590,711
Accounts Receivable (Net) 7,781,341 18,045,306
Inventories 3,026,125 3,639,142
Prepaid Expenses 741,720 2,108,548
------------------------------ -----------------------------
TOTAL CURRENT ASSETS 17,488,793 24,182,567
------------------------------ -----------------------------
PROPERTY AND EQUIPMENT
Revenue Equipment - Cost 78,726,192 98,199,269
Less: Accumulated Depreciation (Revenue) (59,952,481) (75,767,277)
Other Property & Equipment - Cost 71,812,517 72,633,319
Less: Accumulated Depreciation (Other) (41,591,609) (41,326,073)
------------------------------ -----------------------------
TOTAL PROPERTY & EQUIPMENT 48,994,619 53,739,238
------------------------------ -----------------------------
OTHER ASSETS
Goodwill 664,243 744,016
Other Assets 937,839 937,839
------------------------------ -----------------------------
TOTAL OTHER ASSETS 1,602,082 1,681,855
------------------------------ -----------------------------
TOTAL ASSETS $68,085,494 $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 3,143,348
Accrued Wages & Benefits 754,727
Accrued Interest 2,042,466
Accrued Professional Fees (Note 1) 1,153,331
Accrued Taxes (refer to FORM MOR-4) (10,460)
Accrued Insurance, Environmental & Other (1,140,951)
Amounts Due to Insiders (Note 1)
------------------------------ -----------------------------
TOTAL POSTPETITION LIABILITIES 5,942,461 0
------------------------------ -----------------------------
LIABILITIES SUBJECT TO COMPROMISE (Pre-Petition)
Secured Debt 46,234,256 46,234,256
Priority Debt 1,095,512 9,330,355
Unsecured Debt 32,193,266 33,125,644
------------------------------ -----------------------------
TOTAL PRE-PETITION LIABILITIES 79,523,034 88,690,255
------------------------------ -----------------------------
------------------------------ -----------------------------
TOTAL LIABILITIES 85,465,495 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 (8,293,406)
Post-Petition Contributions (Distributions) (Draws)
(attach schedule)
------------------------------- ------------------------------
NET OWNER EQUITY (17,380,001) (9,086,595)
------------------------------- ------------------------------
TOTAL LIABILITIES AND OWNERS' EQUITY $68,085,494 $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: August 1, 2001 to August 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 45,160 334,136 379,296 Various EFT 0
FICA - Employee 28,608 176,072 204,680 Various EFT 0
FICA - Employer 28,372 176,076 204,448 Various EFT 416
Unemployment 443 503 530 0
Other 0 0 0
------------ ------------ ------------ ------------ ------------- ------------
Total Federal Taxes 102,583 686,787 788,954 416
------------ ------------ ------------ ------------ ------------- ------------
State and Local
Withholding 29,244 75,000 60,000 Various EFT 44,244
Sales 75,771 14,000 11,507 Various 78,264
Income 0 0 0 0
Unemployment 9,662 643 16,731 -6,426
Real & Personal Property 302,010 20,320 18,551 Various 303,779
Other 406,387 26,113 23,805 Various 408,695
------------ ------------ ------------ ------------ ------------- ------------
Total State and Local 823,074 136,076 130,594 828,556
------------ ------------ ------------ ------------ ------------- ------------
Total Taxes 925,657 822,863 919,548 828,972
------------ ------------ ------------ ------------ ------------- ------------
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 3,143,348 0 3,143,348
Accrued Wages & Benefits 754,727 754,727
Accrued Interest 2,042,466 2,042,466
Accrued Professional Fees 1,153,331 1,153,331
Accrued Taxes (refer to FORM MOR-4) (10,460) (10,460)
Accrued Insurance, Environmental & (1,140,951) (1,140,951)
Other
------------ ------------ ------------ ------------ ------------- ------------
Total Post-Petition Debts 5,942,461 0 0 0 5,942,461
------------ ------------ ------------ ------------ ------------- ------------
Explain how and when the Debtor intends to pay any past-due post-petition debts.
In re: Matlack Systems, Inc., et al. Case No. 01-1114 (MFW)
Reporting Period: August 1, 2001 to August 31, 2001
ACCOUNTS RECEIVABLE RECONCILIATION AND AGING
Accounts Receivable Reconciliation Amount
Total Accounts Receivable at the beginning of the reporting period $9,775,477
+ Amounts billed during the period 2,220,877 (Note 1)
- Amounts collected during the period (8,042,215)
- Bad Debt and other write-offs (825,218)
+ Change in Reserve 657,000
- Other during the period ($426,507)
---------
Total Accounts Receivable at the end of the reporting period $3,359,414
==========
Accounts Receivable Aging Amount
0 - 30 days old 2,377,669
31 - 60 days old 2,011,672
61 - 90 days old 885,307
91 + days old 1,334,766
-- ---------
6,609,414
Foreign exchange, Revenue Recognition, Sales Accrual Adjustments &
Write-offs 0
Amount considered uncollectible (Bad Debt) (3,250,000)
----------
Accounts Receivable (Net) 3,359,414
=========
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.