8-K 1 matlack1st8k02-02.txt CURRENT REPORT 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): February 6, 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 November 1, 2001 to November 30, 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(i) Monthly Operating Report for the period from November 1, 2001 to November 30, 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: February 21, 2002 By: /s/Stephen E. Judge --------------------------------- Stephen E. Judge Chief Reorganization Officer EXHIBIT INDEX Exhibit No. Description 99(i) Monthly Operating Report for the period from November 1, 2001 to November 30, 2001. UNITED STATES BANKRUPTCY COURT DISTRICT OF DELAWARE In re: Matlack Systems, Inc., et al. Case No. 01-1114 (MFW) Reporting Period: Nov. 1, 2001 to Nov. 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 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/ Stephen E. Judge February 4, 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: Aged accounts receivable listing available upon request. In re: Matlack Systems, Inc., et al. Case No. 01-1114 (MFW) Reporting Period: Nov. 1, 2001 to Nov. 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 ~~Oct~~Nov. 1, 2001 to ~~Oct~~Nov. 3130, 2001 Cumulative Since Filing OPERATING PAYROLL & TAX Actual Projected Actual Projected --------- ------------- ------ --------- ------ --------- (Note 1) Cash Receipts Collection of Accounts $ ~~411~~102,~~880~~875 $ ~~411~~102,~~880~~875 $ ~~854~~85,000 $ 55,~~546~~649,~~551~~426 $ 5856,~~407~~492,000 Receivable Other 31,~~140~~244,~~355~~736 31,~~140~~244,~~355~~736 ~~241~~1,~~600~~090,400 45,~~666~~911,~~334~~070 12,~~595~~687,~~600~~000 -------------- --------------- -------------- --------------- ------------- ------------ Total Cash Receipts 31,~~552~~347,~~235~~611 31,~~552~~347,~~235~~611 1,~~095~~175,~~600~~400 6061,~~212~~560,~~885~~496 5859,~~003~~179,~~600~~000 -------------- --------------- -------------- --------------- ------------- ------------ - - Cash Disbursements Total Payroll ~~51,449~~- ~~254~~123,~~992~~882 ~~308~~123,~~441~~882 ~~177~~133,000 21,~~847~~971,~~529~~411 22,~~057~~190,200 Leased Operators ~~3,159~~- ~~3,159~~- 4,861,230 4,890,000 Operating Expenses Fuel (117,~~571~~386) (117,~~571~~386) - 4,~~264~~247,~~500~~114 5,037,000 Occupancy costs ~~112~~54,~~675~~525 ~~112~~54,~~675~~525 ~~131~~57,000 1,~~774~~829,~~578~~103 12,~~982~~039,100 Equipment Costs 4912,~~691~~695 4912,~~691~~695 9858,000 2,~~111~~124,~~931~~626 2,~~438~~496,800 Insurance ~~254~~129,~~145~~680 ~~254~~129,~~145~~680 ~~233~~178,~~600~~400 5,~~639~~769,~~610~~290 6,~~415~~593,~~400~~800 Other Operating Expenses ~~359~~(66,~~134~~401) ~~359~~(66,~~134~~401) ~~124,000~~- 8,~~428~~362,~~461~~060 10,575,~~999~~998 -------------- --------------- -------------- --------------- ------------- ------------ Total Operating Expenses ~~774~~113,~~077~~113 ~~774~~113,~~077~~113 ~~586~~293,~~600~~400 22,~~219~~332,~~080~~193 26,~~448~~742,~~299~~698 Deposits with Key Vendors - - - 41,148 150,000 CAPEX - Equipment Refurbishment - - - 13,050 399,200 Deferred Rental and Leasing - - - 5363,789 1,414,000 Costs Restructuring Costs ~~505~~609,~~237~~949 ~~338~~63,~~414~~798 ~~846~~673,~~651~~747 1642,~~070,800~~000 3,~~033~~706,~~079~~826 67,~~436~~078,~~200~~600 Remittance of Equipment Sales 2101,~~848,800~~597 2101,~~848,800~~597 6,~~386~~488,~~987~~584 - Proceeds to Secured Lender Inter - Account Transfer ~~593~~187,~~406~~680 (~~593~~187,~~406~~680) - -------------- --------------- -------------- --------------- ------------- ------------ Total Disbursements 41,~~779~~012,~~136~~339 - 41,~~779~~012,~~136~~339 1,~~834~~068,400 5859,~~455~~478,~~892~~231 6162,~~795~~864,~~699~~698 -------------- --------------- -------------- --------------- ------------- ------------ Net Cash Flow/Requirements (1335,~~226,901)~~272 - (1335,~~226,901)~~272 ~~(738~~107,~~800)~~000 12,~~746~~082,~~993~~265 (3,~~792~~685,~~299~~698) Opening Cash 32,~~889~~662,~~576~~675 32,~~889~~662,~~576~~675 (12,~~736~~475,~~498~~298) 915,682 1,317,000 -------------- --------------- -------------- --------------- ------------- ------------ Closing Cash $ 2,~~882~~997,~~675~~947 $ 2,~~882~~997,~~675~~947 $ (2,~~475~~368,298) $ 2,~~662~~997,~~675~~947 $(2,~~475~~368,~~299~~698) ============== =============== ============== =============== ============= ============ THE FOLLOWING SECTION MUST BE COMPLETED DISBURSEMENTS FOR CALCULATING U.S. TRUSTEE QUARTERLY FEES: (FROM CURRENT MONTH ACTUAL COLUMN) Q1 Q2 Q3 Q4 ~~-- -- -- --~~ TOTAL DISBURSEMENTS $ 150,000 $ 31,512,851 $ 22,023,905 $ 45,~~779~~791,~~136~~475 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 $ 45,~~779~~791,~~136~~475 ========== ============ ============ ===========

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: Nov. 1, 2001 to Nov. 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 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 $ 2,~~763~~920,~~498~~979 ($31 21,~~894)~~526 $~~832~~ 175,~~410~~932 $ 10,918 ($~~802~~ 164,~~787~~836) ($3 6,~~221)~~101 BOOKS ----------------------------------------------------------------------------------------------------- BANK BALANCE $ 2,~~747~~920,~~929~~979 $ 21,~~866~~136 $73 175,~~126~~932 $ 10,~~931~~918 $ 0 $49 42,~~565~~875 (+) DEPOSITS $ 0 $ 0 $ 0 $ 0 $ 0 $ 0 IN TRANSIT (-) OUTSTANDING ($~~204~~ 139,~~791~~073) $ 0 $ 0 $ 0 $ 0 ($35 34,~~951~~821) CHECKS OTHER $ 0 $ 0 $ 0 $ 0 $ 0 $ 0 --------------------------------------------------------------------------------------- ADJUSTED $ 2,~~543~~781,~~138~~906 $ 21,~~866~~136 $73 175,~~126~~932 $ 10,~~931~~918 $ 0 $13 8,~~614~~054 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 OTHER --------------------------------------------------------------------------------- 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 --------------------------------------------------------------------------------- $361,358 $0 $202 $0 $0 $14,985 $3,151,911 --------------------------------------------------------------------------------- $113,536 $15,933 $0 $0 $0 $3,032,886 $0 ($113,536) ($15,933) $0 ($370,211) $0 --------------------------------------------------------------------------------- $0 $0 $0 $0 $0 $0 $2,662,675 --------------------------------------------------------------------------------- (NOTE 11) None None None None None None ALL ALL None None None None

-------------------------------------------------------------------------------- 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 -------------------------------------------------------------------------------- $ 0 $ 0 $ 0 $ 0 $ 0 $ 14,434 $ 2,985,054 -------------------------------------------------------------------------------- $ 93,796 $ 15,933 $ 0 $ 0 $0 $ 3,281,570 $ 0 ($ 93,796) ($15,933) $ 0 ($ 283,623) $ 0 -------------------------------------------------------------------------------- $ 0 $ 0 $ 0 $ 0 $ 0 $ 0 $ 2,997,947 -------------------------------------------------------------------------------- (NOTE 11) None None None None None None ALL ALL None None None None 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.) 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: Nov. 1, 2001 to Nov. 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) $~~313~~ 83,~~467~~678 $ 39,~~878~~962,~~483~~161 ========================== ======================== OPERATING EXPENSES Owned Compensation ~~2,244~~(20) 9,792,~~610~~590 Leased Operator Compensation (3017,~~401~~216) 5,~~017~~000,~~523~~307 Fuel Expense ~~(54~~22,~~663)~~411 23,~~988~~011,~~689~~100 Misc. Direct Costs ~~(64~~1,~~676)~~796,811 35,~~707~~503,~~074~~885 Cleaning Expenses (51127,~~316~~802) 4,~~211~~083,~~539~~737 Mechanics Compensation 0 1,266,736 Misc. Maintenance Expense ~~166~~255,~~808~~271 12,~~938~~194,~~773~~044 Equipment Costs 46606,~~332~~048 7,~~202~~808,~~730~~778 Terminal Expenses ~~547~~496,~~711~~280 89,~~694~~191,~~955~~235 -------------------------- ------------------------ TOTAL OPERATING EXPENSES ~~562~~3,~~039~~031,783 4447,~~820~~852,~~629~~412 -------------------------- ------------------------ GROSS PROFIT / (LOSS) (~~248~~2,~~572~~948,105) (47,~~942~~890,~~146~~251) ========================== ======================== G&A EXPENSES ~~759~~187,~~592~~639 10,~~801~~989,~~944~~583 -------------------------- ------------------------ OPERATING PROFIT / (LOSS) (13,~~008~~135,~~164~~744) (1518,~~744~~879,~~090~~834) OTHER INCOME / EXPENSE Gain/Loss on Sale of Equipment (116,~~108~~654,~~884)~~730 (115,~~167~~487,~~453)~~277 Other Income/Deductions ~~(520)~~0 528,580 -------------------------- ------------------------ TOTAL OTHER INCOME/EXPENSES (116,~~109~~654,~~404)~~730 ~~(638~~16,~~873)~~015,857 -------------------------- ------------------------ PROFIT / (LOSS) ($~~101~~ 19,~~240~~790,474) ($15 34,~~105~~895,~~217~~691) ========================== ========================

In re: Matlack Systems, Inc., et al. Case No. 01-1114 (MFW) Reporting Period: Nov. 1, 2001 to Nov. 30, 2001 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 ~~313~~83,~~467~~678 1,~~444~~528,~~992~~670 X-Rail Revenue 0 986,185 Maintenance Revenue 0 323,999 ------------------------ ---------------------- ~~313~~83,~~467~~678 39,~~878~~962,~~483~~161 ------------------------ ---------------------- Owned Compensation Driver Pay Hourly ~~1,625~~0 3,091,600 Driver Overtime Pay 0 34,120 Contractual Pay Mile 270 3,554,726 Fringe Benefits ~~592~~(20) 3,112,~~164~~144 ------------------------ ---------------------- ~~2,244~~(20) 9,792,~~610~~590 ------------------------ ---------------------- Leased Operator Comp Leased Operator Comp (52,~~153)~~481 4,~~946~~948,~~153~~634 Purchased Transportation (2519,~~248~~697) 7151,~~370~~673 ------------------------ ---------------------- (3017,~~401~~216) 5,~~017~~000,~~523~~307 ------------------------ ---------------------- Fuel Expense Fuel Terminal 08,237 1,~~141~~150,~~868~~105 Fuel Outside ~~(42~~14,~~760)~~174 1,~~815~~829,~~449~~623 Fuel Taxes 0 3,904 Oil and Oil Tax ~~(11,903)~~0 27,468 ------------------------ ---------------------- ~~(54~~22,~~663)~~411 23,~~988~~011,~~689~~100 ------------------------ ---------------------- Misc Direct Costs Utility Pay Hourly 0 203,219 Utility Fringe Benefits 0 7,902 Tire (1,~~421)~~801,957 ~~400~~2,~~482~~202,439 Hose (25,~~730~~191) ~~156~~151,~~214~~023 Meals ~~(8,270)~~0 218,725 Lay Over ~~914~~0 611,616 Tolls ~~(46,397)~~45 165,~~065~~110 Fines ~~127~~0 14,452 Mileage Taxes 0 112,494 Insurance ~~(6,899)~~0 1,816,905 ------------------------ ---------------------- ~~(64~~1,~~676)~~796,811 35,~~707~~503,~~074~~885 ------------------------ ---------------------- Cleaning Expenses Cleaners Pay ~~1,348~~0 1,038,915 Overtime Pay 0 42,431 Fringe Benefits 990 690,659 Cleaning Supplies (95116,~~765~~953) ~~593~~476,~~042~~089 Waste Treatment ~~90,859~~0 1,022,588 Outside Contractors (4710,~~902~~849) ~~724~~713,~~582~~733 Net Cleaning Interbranch 0 (1,285) Environmental 450 100,607 ------------------------ ---------------------- (51127,~~316~~802) 4,~~211~~083,~~539~~737 ------------------------ ---------------------- Mechanics Compensation Mechanics Pay 0 772,715 Overtime Pay 0 53,916 Fringe Benefits 0 440,105 Net Mechanics Interbranch 0 0 ------------------------ ---------------------- 0 1,266,736 ------------------------ ----------------------

In re: Matlack Systems, Inc., et al. Case No. 01-1114 (MFW) Reporting Period: Nov. 1, 2001 to Nov. 30, 2001 STATEMENT OF OPERATIONS - continuation sheet

Cumulative BREAKDOWN OF "OTHER" CATEGORY Month Filing to Date Misc Maintenance Expense Parts Expense ~~205~~259,~~000~~104 ~~958~~1,~~899~~218,003 Outside Repairs (293,~~881~~343) ~~786~~752,~~125~~782 Tire Repair ~~(4,995)~~0 89,458 Shop Expense (~~3,316~~490) ~~134~~133,~~291~~801 ------------------------ ---------------------- ~~166~~255,~~808~~271 12,~~938~~194,~~773~~044 ------------------------ ---------------------- Equipment Costs Tractor Depreciation ~~3,333~~0 59,706 Tractor Rent ~~2,326~~0 2,541,450 Trailer Depreciation ~~27,485~~0 1,044,877 Trailer Rent ~~12,805~~0 102,087 License ~~267~~(311) 952,~~746~~435 Permit ~~116~~0 96,312 Interest 0606,359 23,~~405~~011,~~552~~911 ------------------------ ---------------------- 46606,~~332~~048 7,~~202~~808,~~730~~778 ------------------------ ---------------------- Terminal Expenses Terminal Salary & Fringe ~~219~~475,~~204~~700 3,~~214~~690,~~937~~637 Utilities ~~105~~5,~~775~~033 ~~939~~944,~~845~~878 Communication Equipment 0 101,824 Communication Usage ~~124~~(1,~~513~~100) ~~716~~715,~~633~~533 Facility Maintenance (~~4,564~~253) ~~291~~290,~~244~~991 Facility Occupancy 44(2,~~118~~528) 1,~~397~~395,~~956~~428 Transportation General 5819,~~665~~428 2,~~032~~051,~~851~~944 ------------------------ ---------------------- ~~547~~496,~~711~~280 89,~~694~~191,~~955~~235 ------------------------ ---------------------- G&A Expenses Salaries Expense ~~468~~145,~~379~~534 3,~~770~~916,~~655~~189 Fringe Benefits 333,~~968~~204 ~~448~~451,~~530~~734 Communications Basic ~~591~~0 74,956 Communication Services ~~290~~0 7,732 Facilities - Rents ~~1,829~~0 294,855 General Office Supplies 34,~~866~~646 2631,~~366~~012 IBM Supplies 0 4,147 Conventions & Seminars 0 14,322 Postage ~~2,619~~0 81,962 Travel & Other ~~3,940~~377 173,~~370~~747 Outside Services 815,~~803~~457 3,~~370~~375,~~170~~627 Computer Software ~~431~~0 36,225 General & Admin ~~5,069~~59 195,~~692~~751 Marketing Promotions ~~2,435~~0 7,010 Legal ~~110~~20,~~741~~813 ~~288~~308,~~052~~865 Insurance ~~22,190~~0 288,363 Dues & Contributions 0 361 Depreciation 0 118,339 Depreciation - Leasehold 0 40,740 Computer Equipment Rent 217,~~441~~549 ~~340~~347,~~006~~555 Other Expense/Terminal Exp. 0 1,220,091 ------------------------ ---------------------- ~~759~~187,~~592~~639 10,~~801~~989,~~944~~583 ------------------------ ----------------------

In re: Matlack Systems, Inc., et al. Case No. 01-1114 (MFW) Reporting Period: Nov. 1, 2001 to Nov. 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 $3 2,~~151~~985,~~911~~054 $389,571 Restricted Cash 2133,~~035~~703,~~929~~130 Accounts Receivable (Net) ~~840~~48,~~575~~944 18,045,306 Inventories ~~2,073,839~~0 3,639,142 Prepaid Expenses ~~359~~340,~~392~~079 2,108,548 --------------------------------- ----------------------------- TOTAL CURRENT ASSETS 2737,~~461~~077,~~646~~207 24,182,567 --------------------------------- ----------------------------- PROPERTY AND EQUIPMENT Revenue Equipment - Cost ~~56,519,127~~0 98,199,269 Less: Accumulated Depreciation (Revenue) ~~(36,896,079)~~0 (75,767,277) Other Property & Equipment - Cost 558,~~837~~544,~~507~~024 72,633,319 Less: Accumulated Depreciation (Other) (413,~~591~~897,~~609~~850) (41,326,073) --------------------------------- ----------------------------- TOTAL PROPERTY & EQUIPMENT 334,~~868~~646,~~946~~174 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 $6142,~~730~~123,~~592~~381 $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,~~354~~417,~~876~~420 Accrued Wages & Benefits ~~491~~836,~~733~~083 Accrued Interest 23,~~405~~011,~~551~~910 Accrued Professional Fees (Note 1) 1697,~~574,394~~989 Accrued Taxes (refer to FORM MOR-4) ~~141~~262,~~944~~725 Accrued Insurance, Environmental & Other (~~938~~935,~~141~~977) Amounts Due to Insiders (Note 1) --------------------------------- ----------------------------- TOTAL POSTPETITION LIABILITIES 5,~~030~~290,~~357~~150 0 --------------------------------- ----------------------------- LIABILITIES SUBJECT TO COMPROMISE (Pre-Petition) Secured Debt 46,234,256 46,234,256 Priority Debt 2,~~503~~427,~~972~~443 9,330,355 Unsecured Debt 32,153,819 33,125,644 --------------------------------- ----------------------------- TOTAL PRE-PETITION LIABILITIES 80,~~892~~815,~~046~~517 88,690,255 ------------------------------ ---~~--------------------------~~ ------------------------------ ~~-----------------------------~~ TOTAL LIABILITIES 8586,~~922~~105,~~404~~667 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 (1534,~~105~~895,~~217~~691) Post-Petition Contributions (Distributions) (Draws) (attach schedule) ------------------------------- -- ----------------------------- NET OWNER EQUITY (2443,~~191~~982,~~812~~286) (9,086,595) ~~-------------------------------~~================================= ~~------------------------------~~============================= TOTAL LIABILITIES AND OWNERS' EQUITY $6142,~~730~~123,~~592~~381 $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: Nov. 1, 2001 to Nov. 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 -1,511 ~~105~~25,~~006~~252 ~~105~~23,~~006~~741 Various EFT ~~-1,511~~0 FICA - Employee 373 229,~~565~~365 229,~~565~~738 Various EFT ~~373~~0 FICA - Employer 377 229,~~565~~365 229,~~565~~742 Various EFT ~~377~~0 Unemployment -34,~~719~~414 ~~7 702 -~~4,414 702 0 Other 0 0 0 0 ------------ ------------ ------------ ------------ ------------- ------------ Total Federal Taxes -45,~~480~~175 ~~150~~48,~~143~~396 ~~150~~43,~~838~~221 ~~-5,175~~0 ------------ ------------ ------------ ------------ ------------- ------------ State and Local Withholding 6748,~~508~~441 1924,~~376~~598 3870,~~443~~531 Various EFT 482,~~441~~508 Sales 72,596 0 0 Various 72,596 Income 0 0 0 0 Unemployment ~~-6,049~~0 ~~6,049~~0 0 0 Real & Personal Property ~~285~~215,~~887~~735 ~~3,371~~0 7364,~~523~~350 Various ~~215~~151,~~735~~385 Other ~~406~~390,~~492~~771 0 ~~15,721~~0 Various 390,771 ------------ ------------ ------------ ------------ ------------- ------------ Total State and Local ~~826~~727,~~434~~543 2824,~~796~~598 ~~127~~134,~~687~~881 ~~727~~617,~~543~~260 ------------ ------------ ------------ ------------ ------------- ------------ Total Taxes ~~821~~722,~~954~~368 72,994 178,~~939~~102 ~~278~~617,~~525~~260 ~~722~~============ ============ ============ ============ ============= ============ 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,~~368~~417,420 0 1,417,420 Accrued Wages & Benefits 836,083 836,083 Accrued Interest 3,011,910 3,011,910 Accrued Professional Fees 697,989 697,989 Accrued Taxes (refer to FORM MOR-4) 262,725 262,725 Accrued Insurance, Environmental & (935,977) (935,977) Other ------------ ------------ ------------ ------------ ------------- ------------ Total Post-Petition Debts 5,290,150 0 0 0 5,290,150 ============ ============ ============ ============ ============= ============

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: Nov. 1, 2001 to Nov. 30, 2001

~~Number~~ACCOUNTS RECEIVABLE RECONCILIATION AND AGING Accounts Receivable Reconciliation Amount Total Accounts Receivable at the beginning of ~~Days~~the ~~Past~~reporting ~~Due~~period ~~Current~~$ 149,434 + Amounts billed during the period 0~~-30~~ ~~31-60~~(Note 611) -90 ~~Over~~Amounts 90collected ~~Total~~during ~~-------~~the ~~----~~period ~~-----~~(102,875) -~~----~~ Bad Debt and other write-~~------~~offs 2,385 + Change in Reserve 0 -~~----~~ Other during the period $ 0 Total Accounts ~~Payable~~Receivable 1at the end of the reporting period $ 48,~~354,876~~944 Accounts Receivable Aging Amount 0 ~~1,354,876~~- ~~Accrued~~30 ~~Wages~~days &old ~~Benefits~~0 ~~491,733~~31 ~~491,733~~- ~~Accrued~~60 ~~Interest~~days ~~2,405,551~~old ~~2,405,551~~0 ~~Accrued~~61 ~~Professional~~- ~~Fees~~90 ~~1,574,394~~days 1old 13,~~574,394~~141 ~~Accrued~~91 ~~Taxes~~+ ~~(refer~~days toold ~~FORM~~90,803 ~~MOR~~-4)- ~~141~~------ 103,944 ~~141~~Foreign exchange,~~944~~ ~~Accrued~~Revenue ~~Insurance~~Recognition, ~~Environmental~~Sales Accrual Adjustments & Write-offs 0 Amount considered uncollectible (~~938,141~~Bad Debt) (~~938~~55,~~141~~000) ~~Other~~ -------~~-----~~ Accounts Receivable (Net) $ 48,944 ========= DEBTOR QUESTIONNAIRE Must be completed each month Yes No ------------ ------------ ----~~--------~~ ---~~----------~~ --~~----------~~ ~~Total~~1. ~~Post-Petition~~Have ~~Debts~~any 5assets been sold or transferred outside the normal course X of business this reporting period? If yes,~~030~~ 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,~~9357~~ 0provide 0an 0explanation 5below. 3. Have all postpetition tax returns been timely filed? If no,~~030~~ X provide an explanation below. 4. Are workers compensation,~~357~~ ~~============~~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.

Accounts Receivable Reconciliation Amount Total Accounts Receivable at the beginning of the reporting period $ 674,728 + Amounts billed during the period 0 (Note 1) - Amounts collected during the period (411,880) - Bad Debt and other write-offs (132,438) + Change in Reserve 2,259,000 - Other during the period $(2,239,976) ----------- Total Accounts Receivable at the end of the reporting period $ 149,434 =========== Accounts Receivable Aging Amount 0 - 30 days old 0 31 - 60 days old 58,908 61 - 90 days old 64,482 91 + days old 81,044 204,434 Foreign exchange, Revenue Recognition, Sales Accrual Adjustments & Write-offs 0 Amount considered uncollectible (Bad Debt) (55,000) ----------- Accounts Receivable (Net) $ 149,434 =========== 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.

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