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): July 23, 2002
---------------------
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 May 1, 2002 to
May 31, 2002 and the Monthly Operating Report for the period from June 1, 2002
to June 30, 2002, 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(o) Monthly Operating Report for the period from May
1, 2002 to May 31 30, 2002.
99(p) Monthly Operating Report for the period from June
1, 2002 to June 30, 2002.
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: July 31, 2002 By: /s/ Stephen E. Judge
-------------------------------
Stephen E. Judge
Chief Reorganization Officer
EXHIBIT INDEX
Exhibit No. Description
- ----------- -----------
99(o) Monthly Operating Report for the period from May 1, 2002 to May 31,
2002.
99(p) Monthly Operating Report for the period from June 1, 2002 to June 30,
2002.
Exhibit 99(o)
UNITED STATES BANKRUPTCY COURT
DISTRICT OF DELAWARE
In re: Matlack Systems, Inc., et al. Case No. 01-1114 (MFW)
Reporting Period: May 1, 2002 to May 31, 2002
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 N/A 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/ Stephen E. Judge July 17, 2002
- --------------------------------------- ----------------------
Signature of Authorized Individual* Date
Stephen E. Judge Chief Reorganization 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: Debtor no longer has Accounts Receivable outstanding.
In re: Matlack Systems, Inc., et al. Case No. 01-1114 (MFW)
Reporting Period: May 1, 2002 to May 31, 2002
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, 2002 to May 31, 2002 Cumulative Since Filing
OPERATING PAYROLL & TAX Actual Projected Actual Projected
(Note 1)
Cash Receipts
Collection of Accounts
Receivable $ - $ - $ - $ 55,762,668 $ 56,532,000
Other 46,964 46,964 - 7,494,527 4,635,916
-------------- --------------- -------------- --------------- ------------- -------------
Total Cash Receipts 46,964 46,964 0 63,257,195 61,167,916
-------------- --------------- -------------- --------------- ------------- -------------
Cash Disbursements
Total Payroll - 36,746 36,746 40,000 22,266,505 22,524,583
Leased Operators - - 4,861,230 4,890,000
Operating Expenses
Fuel - - - 4,238,356 5,037,000
Occupancy costs 10,706 10,706 15,000 2,162,457 2,770,600
Equipment Costs 18,197 18,197 5,000 2,160,958 2,766,800
Insurance 53,988 53,988 40,000 6,096,824 7,033,800
Other Operating Expenses 8,534 8,534 10,000 8,495,484 10,815,998
-------------- --------------- -------------- --------------- ------------- -------------
Total Operating Expenses 91,425 91,425 70,000 23,154,079 28,424,198
Deposits with Key Vendors - - - 41,148 150,000
CAPEX - Equipment Refurbishment - - - 13,050 399,200
Deferred Rental and Leasing 34,000 34,000 - 97,789 1,448,000
Costs
Restructuring Costs 23,931 - 23,931 25,000 7,087,774 9,667,097
Remittance of Equipment Sales 6,512,766 -
Proceeds to Secured Lender (150,000) (150,000)
Inter - Account Transfer 36,746 (36,746) -
-------------- --------------- -------------- --------------- ------------- -------------
Total Disbursements 36,102 - 36,102 135,000 64,034,341 67,503,078
-------------- --------------- -------------- --------------- ------------- -------------
Net Cash Flow/Requirements 10,862 - 10,862 (135,000) (777,146) (6,335,162)
Opening Cash 127,674 127,674 (4,883,162) 915,682 1,317,000
-------------- --------------- -------------- --------------- ------------- -------------
Closing Cash $ 138,536 $ 138,536 $ (5,018,162) $ 138,536 $ (5,018,162)
============== =============== ============== =============== ============= =============
THE FOLLOWING SECTION MUST BE COMPLETED
DISBURSEMENTS FOR CALCULATING U.S. TRUSTEE QUARTERLY FEES: (FROM CURRENT MONTH ACTUAL COLUMN)
Q1 2001 Q2 2001 Q3 2001 Q4 2001
------- ------- ------- -------
TOTAL DISBURSEMENTS $ 150,000 $ 31,512,851 $ 22,023,905 $ 6,840,682
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 $ 22,023,905 $ 6,840,682
========== ============ ============ ============
Q1 2002 Q2 2002
------- -------
TOTAL DISBURSEMENTS $ 3,430,322 $ 76,581
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 $ 3,430,322 $ 76,581
===========================
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: May 1, 2002 to May 31, 2002
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
Converted @
1:1.1.51
------------------------------------------------------------------------------------------------------
1 3 4 Dec 6 9 12
Operating Operating Operating Tax Matlack
(Mellon Operating (First Operating Bank of Nova Prefunding Inc.
Lockbox) (Mellon DE) Union) Mellon Scotia Mellon Working
#145-2480 #8016-376-9 #200003263225 #0090907 #00820-15 #021-8181 Funds
Note 1 Note 3 Note 4 3 Note 5 Note 6 Note 9 Note 10 Grand Total
------------------------------------------------------------------------------------------------------
BALANCE PER BOOKS $ 168,668 $ 3,795 $ 0 ($ 58,253) $ 5,848 $ 0 $ 300 $ 120,358
- ------------------------------------------------------------------------------------------------------------------------
BANK BALANCE $ 168,668 $ 3,795 $ 0 $ 0 $ 5,848 $ 0 $0 $ 178,311
(+) DEPOSITS IN $ 0 $ 0 $ 0 $ 0 $ 0 $ 0
TRANSIT
(-) OUTSTANDING ($ 39,775) $ 0 $ 0 $ 0 $ 0 $ 0 ($ 39,775)
CHECKS
OTHER $ 0 $ 0 $ 0 $ 0 $ 0 $ 0
------------------------------------------------------------------------------------------------------
ADJUSTED BANK $ 128,893 $ 3,795 $ 0 $ 0 $ 5,848 $ 0 $ 0 $ 138,536
BALANCE*
------------------------------------------------------------------------------------------------------
* Adjusted bank (NOTE 11)
balance must
equal balance
per books (see
Note 11)
DEPOSITS IN None None None None None None None
TRANSIT
CHECKS Yes None None None None None None
OUTSTANDING
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 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 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.
In re: Matlack Systems, Inc., et al. Case No. 01-1114 (MFW)
Reporting Period: May 1, 2002 to May 31, 2002
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) $ 4,300 $ 40,045,221
-------------------------- ------------------------
OPERATING EXPENSES
Owned Compensation 0 9,795,625
Leased Operator Compensation 16,959 5,017,266
Fuel Expense 0 3,002,342
Misc. Direct Costs 0 5,503,885
Cleaning Expenses 8,552 4,152,683
Mechanics Compensation 0 1,266,834
Misc. Maintenance Expense 0 2,189,685
Equipment Costs 0 7,808,778
Terminal Expenses 26,532 9,373,243
-------------------------- ------------------------
TOTAL OPERATING EXPENSES 52,043 48,110,341
-------------------------- ------------------------
GROSS PROFIT / (LOSS) (47,743) (8,065,120)
-------------------------- ------------------------
G&A EXPENSES 57,844 14,138,377
-------------------------- ------------------------
OPERATING PROFIT / (LOSS) (105,587) (22,203,497)
OTHER INCOME / EXPENSE
Gain/Loss on Sale of Equipment (43,453) 13,424,640
Other Income/Deductions 0 528,580
-------------------------- ------------------------
TOTAL OTHER INCOME/EXPENSES (43,453) 13,953,220
-------------------------- ------------------------
PROFIT / (LOSS) (62,134) ($ 36,156,717)
-------------------------- ------------------------
In re: Matlack Systems, Inc., et al. Case No. 01-1114 (MFW)
Reporting Period: May 1, 2002 to May 31, 2002
STATEMENT OF OPERATIONS - continuation sheet
Cumulative
BREAKDOWN OF "OTHER" CATEGORY Month Filing to Date
- ----------------------------- ----- --------------
Revenue
Owned Linehaul Revenue 0 20,035,706
Owned Accessorial Revenue 0 4,477,068
Leased Linehaul Revenue 0 6,865,934
Leased Accessorial Revenue 0 774,372
Cleaning Revenue 0 4,970,227
Other Operating Revenue 4,300 1,611,730
X-Rail Revenue 0 986,185
Maintenance Revenue 0 323,999
------------------------ ----------------------
4,300 40,045,921
------------------------ ----------------------
Owned Compensation
Driver Pay Hourly 0 3,091,600
Driver Overtime Pay 0 34,120
Contractual Pay Mile 0 3,554,726
Fringe Benefits 0 3,115,179
------------------------ ----------------------
0 9,795,625
------------------------ ----------------------
Leased Operator Comp
Leased Operator Comp 0 4,948,634
Purchased Transportation 16,959 68,632
------------------------ ----------------------
16,959 5,017,266
------------------------ ----------------------
Fuel Expense
Fuel Terminal 0 1,150,105
Fuel Outside 0 1,820,865
Fuel Taxes 0 3,904
Oil and Oil Tax 0 27,468
------------------------ ----------------------
0 3,002,342
------------------------ ----------------------
Misc Direct Costs
Utility Pay Hourly 0 203,219
Utility Fringe Benefits 0 7,902
Tire 0 2,202,439
Hose 0 151,023
Meals 0 218,725
Lay Over 0 611,616
Tolls 0 165,110
Fines 0 14,452
Mileage Taxes 0 112,494
Insurance 0 1,816,905
------------------------ ----------------------
0 5,503,885
------------------------ ----------------------
Cleaning Expenses
Cleaners Pay 0 1,040,407
Overtime Pay 0 42,431
Fringe Benefits 0 690,965
Cleaning Supplies 0 476,089
Waste Treatment 0 1,039,350
Outside Contractors 0 727,517
Net Cleaning Interbranch 0 (1,285)
Environmental 8,552 137,209
------------------------ ----------------------
8,552 4,152,683
------------------------ ----------------------
Mechanics Compensation
Mechanics Pay 0 772,715
Overtime Pay 0 53,916
Fringe Benefits 0 440,203
Net Mechanics Interbranch 0 0
------------------------ ----------------------
0 1,266,834
------------------------ ----------------------
In re: Matlack Systems, Inc., et al. Case No. 01-1114 (MFW)
Reporting Period: May 1, 2002 to May 31, 2002
STATEMENT OF OPERATIONS - continuation sheet
Cumulative
BREAKDOWN OF "OTHER" CATEGORY Month Filing to Date
Misc Maintenance Expense
Parts Expense 0 1,213,644
Outside Repairs 0 752,782
Tire Repair 0 89,458
Shop Expense 0 133,801
------------------------ ----------------------
0 2,189,685
------------------------ ----------------------
Equipment Costs
Tractor Depreciation 0 59,706
Tractor Rent 0 2,541,450
Trailer Depreciation 0 1,044,877
Trailer Rent 0 102,087
License 0 952,435
Permit 0 96,312
Interest 0 3,011,911
------------------------ ----------------------
0 7,808,778
------------------------ ----------------------
Terminal Expenses
Terminal Salary & Fringe 0 3,695,416
Utilities 227 975,838
Communication Equipment 0 102,886
Communication Usage 22 715,209
Facility Maintenance 0 290,991
Facility Occupancy 6,871 1,483,521
Transportation General 19,412 2,109,382
------------------------ ----------------------
26,532 9,373,243
------------------------ ----------------------
G&A Expenses
Salaries Expense 27,232 6,009,356
Fringe Benefits 0 (79,434)
Communications Basic 66 75,088
Communication Services 0 7,732
Facilities - Rents 2,656 320,406
General Office Supplies 45 43,882
IBM Supplies 0 4,147
Conventions & Seminars 0 14,322
Postage 0 81,962
Travel & Other 814 185,458
Outside Services 23,249 4,877,592
Computer Software 0 36,225
General & Admin 0 199,933
Marketing Promotions 0 7,010
Legal 2,279 325,683
Insurance 0 288,363
Dues & Contributions 0 361
Depreciation 0 118,339
Depreciation - Leasehold 0 40,740
Computer Equipment Rent 1,503 361,121
Other Expense/Terminal Exp. 0 1,220,091
------------------------ ----------------------
57,844 14,138,377
------------------------ ----------------------
In re: Matlack Systems, Inc., et al. Case No. 01-1114 (MFW)
Reporting Period: May 1, 2002 to May 31, 2002
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 $ 120,358 $ 389,571
Restricted Cash 0
Accounts Receivable (Net) 4,000 18,045,306
Inventories 0 3,639,142
Prepaid Expenses 390,000 2,108,548
--------------------------------- -----------------------------
TOTAL CURRENT ASSETS 514,358 24,182,567
--------------------------------- -----------------------------
PROPERTY AND EQUIPMENT
Revenue Equipment - Cost 0 98,199,269
Less: Accumulated Depreciation (Revenue) 0 (75,767,277)
Other Property & Equipment - Cost 2,322,465 72,633,319
Less: Accumulated Depreciation (Other) (1,330,730) (41,326,073)
--------------------------------- -----------------------------
TOTAL PROPERTY & EQUIPMENT 991,735 53,739,238
--------------------------------- -----------------------------
OTHER ASSETS
Goodwill 0 744,016
Other Assets 400,000 937,839
--------------------------------- -----------------------------
TOTAL OTHER ASSETS 400,000 1,681,855
--------------------------------- -----------------------------
TOTAL ASSETS $ 1,906,093 $ 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 1,258,181
Accrued Wages & Benefits 363,829
Accrued Interest 3,011,910
Accrued Professional Fees (Note 1) 323,256
Accrued Taxes (refer to FORM MOR-4) 214,370
Accrued Insurance, Environmental & Other (937,382)
Amounts Due to Insiders (Note 1)
--------------------------------- -----------------------------
TOTAL POSTPETITION LIABILITIES 4,234,164 0
--------------------------------- -----------------------------
LIABILITIES SUBJECT TO COMPROMISE (Pre-Petition)
Secured Debt 46,234,256 46,234,256
Remittance of Sale Proceeds to Secured Lenders (37,744,952)
Priority Debt 2,272,119 9,330,355
Unsecured Debt 32,153,819 33,125,644
--------------------------------- -----------------------------
TOTAL PRE-PETITION LIABILITIES 42,915,241 88,690,255
--------------------------------- -----------------------------
TOTAL LIABILITIES 47,149,405 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 (36,156,717)
Post-Petition Contributions (Distributions) (Draws)
(attach schedule)
-------------------------------- ------------------------------
NET OWNER EQUITY (45,243,312) (9,086,595)
-------------------------------- ------------------------------
TOTAL LIABILITIES AND OWNERS' EQUITY $1,906,093 $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: May 1, 2002 to May 31, 2002
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 4,160 4,160 Various EFT 0
FICA - Employee 0 1,441 1,441 Various EFT 0
FICA - Employer 0 1,441 1,441 Various EFT 0
Unemployment 0 0 0 0
Other 0 0 0 0
------------ ------------ ------------ ------------ ------------- ------------
Total Federal Taxes 1,177 7,042 7,042 0
------------ ------------ ------------ ------------ ------------- ------------
State and Local
Withholding 1,486 1,153 0 2,639
Sales 72,596 0 0 72,596
Income 0 0 0 0
Unemployment 0 0 0 0
Real & Personal Property 125,195 0 0 125,195
Other 390,771 0 0 390,771
------------ ------------ ------------ ------------ ------------- ------------
Total State and Local 611,074 1,153 0 591,201
------------ ------------ ------------ ------------ ------------- ------------
Total Taxes 611,821 8,195 7,042 591,201
------------ ------------ ------------ ------------ ------------- ------------
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 1,258,181 0 1,258,181
Accrued Wages & Benefits 363,829 363,829
Accrued Interest 3,011,910 3,011,910
Accrued Professional Fees 323,256 323,256
Accrued Taxes (refer to FORM MOR-4) 214,370 214,370
Accrued Insurance, Environmental & (937,382) (937,382)
Other
------------ ------------ ------------ ------------ ------------- ------------
Total Post-Petition Debts 4,234,164 0 0 0 4,234,164
------------ ------------ ------------ ------------ ------------- ------------
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: May 1, 2002 to May 31, 2002
ACCOUNTS RECEIVABLE RECONCILIATION AND AGING
Accounts Receivable Reconciliation Amount
---------------------------------- ------
Total Accounts Receivable at the beginning of the reporting period $ 0
+ Amounts billed during the period 4,000 (Note 1)
- Amounts collected during the period 0
- Bad Debt and other write-offs 0
+ Change in Reserve 0
- Other during the period 0
------------
Total Accounts Receivable at the end of the reporting period $ 4,000
============
Accounts Receivable Aging Amount
0 - 30 days old 4,000
31 - 60 days old 0
61 - 90 days old 0
91 + days old 0
------------
4,000
Foreign exchange, Revenue Recognition, Sales Accrual Adjustments &
Write-offs 0
Amount considered uncollectible (Bad Debt) 0
------------
Accounts Receivable (Net) $ 4,000
============
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.
Exhibit 99(p)
UNITED STATES BANKRUPTCY COURT
DISTRICT OF DELAWARE
In re: Matlack Systems, Inc., et al. Case No. 01-1114 (MFW)
Reporting Period: June 1, 2002 to June 30, 2002
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 N/A 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/ Stephen E. Judge July 19, 2002
- -------------------------------------- ----------------------
Signature of Authorized Individual* Date
Stephen E. Judge Chief Reorganization 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: Debtor no longer has Accounts Receivable outstanding.
In re: Matlack Systems, Inc., et al. Case No. 01-1114 (MFW)
Reporting Period: June 1, 2002 to June 30, 2002
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 June 1, 2002 to June 30, 2002 Cumulative Since Filing
OPERATING PAYROLL & TAX Actual Projected Actual Projected
--------- ------------- ------ --------- ------ ---------
(Note 1)
Cash Receipts
Collection of Accounts $ 4,000 $ 4,000 $ $ $
Receivable - 55,766,668 56,532,000
Other 3,394 3,394 - 7,497,921 4,635,916
-------------- --------------- -------------- --------------- ------------- -------------
Total Cash Receipts 7,394 7,394 0 63,264,589 61,167,916
-------------- --------------- -------------- --------------- ------------- -------------
Cash Disbursements
Total Payroll - 33,465 33,465 35,000 22,299,970 22,559,583
Leased Operators - - 4,861,230 4,890,000
Operating Expenses
Fuel - - - 4,238,356 5,037,000
Occupancy costs 1,053 1,053 10,000 2,163,510 2,780,600
Equipment Costs - - 5,000 2,160,958 2,771,800
Insurance 3,189 3,189 20,000 6,100,013 7,053,800
Other Operating Expenses 42,836 42,836 35,000 8,538,320 10,850,998
-------------- --------------- -------------- --------------- ------------- -------------
Total Operating Expenses 47,078 47,078 70,000 23,201,157 28,494,198
Deposits with Key Vendors - - - 41,148 150,000
CAPEX - Equipment Refurbishment - - - 13,050 399,200
Deferred Rental and Leasing - - - 97,789 1,448,000
Costs
Restructuring Costs 9,009 - 9,009 25,000 7,096,783 9,692,097
Remittance of Equipment Sales 6,512,766 -
Proceeds to Secured Lender - -
Inter - Account Transfer 33,465 (33,465) -
-------------- --------------- -------------- --------------- ------------- -------------
Total Disbursements 89,552 - 89,552 130,000 64,123,893 67,633,078
-------------- --------------- -------------- --------------- ------------- -------------
Net Cash Flow/Requirements (82,158) - (82,158) (130,000) (859,304) (6,465,162)
Opening Cash 138,536 138,536 (5,018,162) 915,682 1,317,000
-------------- --------------- -------------- --------------- ------------- -------------
Closing Cash $ 56,378 $ 56,378 $ (5,148,162) $ 56,378 $ (5,148,162)
============== =============== ============== =============== ============= =============
THE FOLLOWING SECTION MUST BE COMPLETED
DISBURSEMENTS FOR CALCULATING U.S. TRUSTEE QUARTERLY FEES: (FROM CURRENT MONTH ACTUAL COLUMN)
Q1 2001 Q2 2001 Q3 2001 Q4 2001
------- ------- ------- -------
TOTAL DISBURSEMENTS $ 150,000 $ 31,512,851 $ 22,023,905 $ 6,840,682
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 $ 22,023,905 $ 6,840,682
========= ============ ============ ===========
Q1 2002 Q2 2002
------- -------
TOTAL DISBURSEMENTS $ 3,430,322 $ 166,133
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 $ 3,430,322 $ 166,133
=======================================
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: June 1, 2002 to June 30, 2002
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
Converted @
1:1.1.51
------------------------------------------------------------------------------------------------------
1 3 4 Dec 6 9 12
Operating Operating Operating Tax Matlack
(Mellon Operating (First Operating Bank of Nova Prefunding Inc.
Lockbox) (Mellon DE) Union) Mellon Scotia Mellon Working
#145-2480 #8016-376-9 #200003263225 #0090907 #00820-15 #021-8181 Funds
Note 1 Note 3 Note 4 3 Note 5 Note 6 Note 9 Note 10 Grand Total
------------------------------------------------------------------------------------------------------
BALANCE PER BOOKS $ 67,548 $ 2,001 $ 0 ($ 25,941) $ 0 $ 0 $ 300 $ 43,908
- ------------------------------------------------------------------------------------------------------------------------
BANK BALANCE $ 67,548 $ 2,001 $ 0 $ 0 $ 0 $ 0 $0 $ 69,549
(+) DEPOSITS IN $ 0 $ 0 $ 0 $ 0 $ 0 $ 0
TRANSIT
(-) OUTSTANDING ($ 13,171) $ 0 $ 0 $ 0 $ 0 $ 0 ($ 13,171)
CHECKS
OTHER $ 0 $ 0 $ 0 $ 0 $ 0 $ 0
------------------------------------------------------------------------------------------------------
ADJUSTED BANK $ 54,377 $ 2,001 $ 0 $ 0 $ 0 $ 0 $ 0 $ 56,378
BALANCE*
------------------------------------------------------------------------------------------------------
* Adjusted bank (NOTE 11)
balance must
equal balance
per books (see
Note 11)
DEPOSITS IN None None None None None None None
TRANSIT
CHECKS Yes None None None None None None
OUTSTANDING
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 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 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.
In re: Matlack Systems, Inc., et al. Case No. 01-1114 (MFW)
Reporting Period: June 1, 2002 to June 30, 2002
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) $ 4,000 $ 40,049,221
-------------------------- ------------------------
OPERATING EXPENSES
Owned Compensation 0 9,795,625
Leased Operator Compensation 0 5,017,266
Fuel Expense 0 3,002,342
Misc. Direct Costs 0 5,503,885
Cleaning Expenses 2,020,238 6,172,921
Mechanics Compensation 0 1,266,834
Misc. Maintenance Expense 0 2,189,685
Equipment Costs 0 7,808,778
Terminal Expenses 13,394 9,386,637
-------------------------- ------------------------
TOTAL OPERATING EXPENSES 2,033,632 50,143,973
-------------------------- ------------------------
GROSS PROFIT / (LOSS) (2,029,632) (10,094,752)
-------------------------- ------------------------
G&A EXPENSES 196,998 14,335,375
-------------------------- ------------------------
OPERATING PROFIT / (LOSS) (2,226,630) (24,430,127)
OTHER INCOME / EXPENSE
Gain/Loss on Sale of Equipment 308,820 13,733,460
Other Income/Deductions 400,000 928,580
-------------------------- ------------------------
TOTAL OTHER INCOME/EXPENSES 708,820 14,662,040
-------------------------- ------------------------
PROFIT / (LOSS) ($ 2,935,450) ($ 39,092,167)
-------------------------- ------------------------
In re: Matlack Systems, Inc., et al. Case No. 01-1114 (MFW)
Reporting Period: June 1, 2002 to June 30, 2002
STATEMENT OF OPERATIONS - continuation sheet
Cumulative
BREAKDOWN OF "OTHER" CATEGORY Month Filing to Date
- ----------------------------- ----- --------------
Revenue
Owned Linehaul Revenue 0 20,035,706
Owned Accessorial Revenue 0 4,477,068
Leased Linehaul Revenue 0 6,865,934
Leased Accessorial Revenue 0 774,372
Cleaning Revenue 0 4,970,227
Other Operating Revenue 4,000 1,615,730
X-Rail Revenue 0 986,185
Maintenance Revenue 0 323,999
------------------------ ----------------------
4,000 40,049,221
------------------------ ----------------------
Owned Compensation
Driver Pay Hourly 0 3,091,600
Driver Overtime Pay 0 34,120
Contractual Pay Mile 0 3,554,726
Fringe Benefits 0 3,115,179
------------------------ ----------------------
0 9,795,625
------------------------ ----------------------
Leased Operator Comp
Leased Operator Comp 0 4,948,634
Purchased Transportation 0 68,632
------------------------ ----------------------
0 5,017,266
------------------------ ----------------------
Fuel Expense
Fuel Terminal 0 1,150,105
Fuel Outside 0 1,820,865
Fuel Taxes 0 3,904
Oil and Oil Tax 0 27,468
------------------------ ----------------------
0 3,002,342
------------------------ ----------------------
Misc Direct Costs
Utility Pay Hourly 0 203,219
Utility Fringe Benefits 0 7,902
Tire 0 2,202,439
Hose 0 151,023
Meals 0 218,725
Lay Over 0 611,616
Tolls 0 165,110
Fines 0 14,452
Mileage Taxes 0 112,494
Insurance 0 1,816,905
------------------------ ----------------------
0 5,503,885
------------------------ ----------------------
Cleaning Expenses
Cleaners Pay 0 1,040,407
Overtime Pay 0 42,431
Fringe Benefits 0 690,965
Cleaning Supplies 0 476,089
Waste Treatment 0 1,039,350
Outside Contractors 238 727,755
Net Cleaning Interbranch 0 (1,285)
Environmental 2,020,000 2,157,209
------------------------ ----------------------
2,020,238 6,172,921
------------------------ ----------------------
Mechanics Compensation
Mechanics Pay 0 772,715
Overtime Pay 0 53,916
Fringe Benefits 0 440,203
Net Mechanics Interbranch 0 0
------------------------ ----------------------
0 1,266,834
------------------------ ----------------------
In re: Matlack Systems, Inc., et al. Case No. 01-1114 (MFW)
Reporting Period: June 1, 2002 to June 30, 2002
STATEMENT OF OPERATIONS - continuation sheet
Cumulative
BREAKDOWN OF "OTHER" CATEGORY Month Filing to Date
- ----------------------------- ----- --------------
Misc Maintenance Expense
Parts Expense 0 1,213,644
Outside Repairs 0 752,782
Tire Repair 0 89,458
Shop Expense 0 133,801
------------------------ ----------------------
0 2,189,685
------------------------ ----------------------
Equipment Costs
Tractor Depreciation 0 59,706
Tractor Rent 0 2,541,450
Trailer Depreciation 0 1,044,877
Trailer Rent 0 102,087
License 0 952,435
Permit 0 96,312
Interest 0 3,011,911
------------------------ ----------------------
0 7,808,778
------------------------ ----------------------
Terminal Expenses
Terminal Salary & Fringe 0 3,695,416
Utilities 1,125 976,963
Communication Equipment 0 102,886
Communication Usage 0 715,209
Facility Maintenance 0 290,991
Facility Occupancy 13,667 1,497,188
Transportation General (1,398) 2,107,984
------------------------ ----------------------
13,394 9,386,637
------------------------ ----------------------
G&A Expenses
Salaries Expense 35,400 6,044,756
Fringe Benefits 0 (79,434)
Communications Basic 66 75,154
Communication Services 0 7,732
Facilities - Rents 2,656 323,062
General Office Supplies 1,608 45,490
IBM Supplies 0 4,147
Conventions & Seminars 0 14,322
Postage 0 81,962
Travel & Other 5,424 190,882
Outside Services 145,679 5,023,271
Computer Software 0 36,225
General & Admin 2,081 202,014
Marketing Promotions 0 7,010
Legal 1,960 327,643
Insurance 0 288,363
Dues & Contributions 0 361
Depreciation 0 118,339
Depreciation - Leasehold 0 40,740
Computer Equipment Rent 2,124 363,245
Other Expense/Terminal Exp. 0 1,220,091
------------------------ ----------------------
196,998 14,335,375
------------------------ ----------------------
In re: Matlack Systems, Inc., et al. Case No. 01-1114 (MFW)
Reporting Period: June 1, 2002 to June 30, 2002
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 $ 43,909 $ 389,571
Restricted Cash 0
Accounts Receivable (Net) 4,000 18,045,306
Inventories 0 3,639,142
Prepaid Expenses 390,000 2,108,548
--------------------------------- -----------------------------
TOTAL CURRENT ASSETS 437,909 24,182,567
--------------------------------- -----------------------------
PROPERTY AND EQUIPMENT
Revenue Equipment - Cost 0 98,199,269
Less: Accumulated Depreciation (Revenue) 0 (75,767,277)
Other Property & Equipment - Cost 2,020,041 72,633,319
Less: Accumulated Depreciation (Other) (1,330,730) (41,326,073)
--------------------------------- -----------------------------
TOTAL PROPERTY & EQUIPMENT 689,311 53,739,238
--------------------------------- -----------------------------
OTHER ASSETS
Goodwill 0 744,016
Other Assets 0 937,839
--------------------------------- -----------------------------
TOTAL OTHER ASSETS 0 1,681,855
--------------------------------- -----------------------------
TOTAL ASSETS $ 1,127,220 $ 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 1,276,978
Accrued Wages & Benefits 360,640
Accrued Interest 3,011,910
Accrued Professional Fees (Note 1) 223,225
Accrued Taxes (refer to FORM MOR-4) 214,370
Accrued Insurance, Environmental & Other (936,382)
Amounts Due to Insiders (Note 1)
--------------------------------- -----------------------------
TOTAL POSTPETITION LIABILITIES 4,150,741 0
--------------------------------- -----------------------------
LIABILITIES SUBJECT TO COMPROMISE (Pre-Petition)
Secured Debt 48,234,256 48,234,256
Remittance of Sale Proceeds to Secured Lenders (37,504,952)
Priority Debt 2,272,119 9,330,355
Unsecured Debt 32,153,819 33,125,644
--------------------------------- -----------------------------
TOTAL PRE-PETITION LIABILITIES 45,155,241 90,690,255
--------------------------------- -----------------------------
--------------------------------- -----------------------------
TOTAL LIABILITIES 49,305,982 90,690,255
--------------------------------- -----------------------------
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 (39,092,167)
Post-Petition Contributions (Distributions) (Draws)
(attach schedule)
-------------------------------- ------------------------------
NET OWNER EQUITY (48,178,762) (9,086,595)
-------------------------------- ------------------------------
TOTAL LIABILITIES AND OWNERS' EQUITY $1,127,220 $81,603,660
-------------------------------- ------------------------------
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: June 1, 2002 to June 30, 2002
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 4,117 4,117 Various EFT 0
FICA - Employee 0 1,384 1,384 Various EFT 0
FICA - Employer 0 1,384 1,384 Various EFT 0
Unemployment 0 0 0 0
Other 0 0 0 0
------------ ------------ ------------ ------------ ------------- ------------
Total Federal Taxes 1,177 6,885 6,885 0
------------ ------------ ------------ ------------ ------------- ------------
State and Local
Withholding 2,639 1,134 0 3,773
Sales 72,596 0 0 72,596
Income 0 0 0 0
Unemployment 0 0 0 0
Real & Personal Property 125,195 0 0 125,195
Other 390,771 0 0 390,771
------------ ------------ ------------ ------------ ------------- ------------
Total State and Local 611,074 1,134 0 592,335
------------ ------------ ------------ ------------ ------------- ------------
Total Taxes 611,821 8,019 6,885 592,335
------------ ------------ ------------ ------------ ------------- ------------
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 1,276,978 0 1,276,978
Accrued Wages & Benefits 360,640 360,640
Accrued Interest 3,011,910 3,011,910
Accrued Professional Fees 223,225 223,225
Accrued Taxes (refer to FORM MOR-4) 214,370 214,370
Accrued Insurance, Environmental & (936,382) (936,382)
Other
------------ ------------ ------------ ------------ ------------- ------------
Total Post-Petition Debts 4,150,741 0 0 0 4,150,741
------------ ------------ ------------ ------------ ------------- ------------
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: June 1, 2002 to June 30, 2002
ACCOUNTS RECEIVABLE RECONCILIATION AND AGING
Accounts Receivable Reconciliation Amount
---------------------------------- ------
Total Accounts Receivable at the beginning of the reporting period $ 4,000
+ Amounts billed during the period 4,000 (Note 1)
- Amounts collected during the period (4,000)
- Bad Debt and other write-offs 0
+ Change in Reserve 0
- Other during the period 0
Total Accounts Receivable at the end of the reporting period $ 4,000
Accounts Receivable Aging Amount
0 - 30 days old 4,000
31 - 60 days old 0
61 - 90 days old 0
91 + days old 0
4,000
Foreign exchange, Revenue Recognition, Sales Accrual Adjustments &
Write-offs 0
Amount considered uncollectible (Bad Debt) 0
Accounts Receivable (Net) $ 4,000
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.