8-K 1 matlack1st8k06-02.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): May 22, 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 April 1, 2002 to April 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(n) Monthly Operating Report for the period from April 1, 2002 to April 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: May 29, 2002 By: /s/ Stephen E. Judge -------------------------------- Stephen E. Judge Chief Reorganization Officer EXHIBIT INDEX Exhibit No. Description ----------- ----------- 99(n) Monthly Operating Report for the period from April 1, 2002 to April 30, 2002. UNITED STATES BANKRUPTCY COURT DISTRICT OF DELAWARE In re: Matlack Systems, Inc., et al. Case No. 01-1114 (MFW) Reporting Period: Apr. 1, 2002 to Apr. 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 NoN/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 May 21, 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: Apr. 1, 2002 to Apr. 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 ~~Dec~~Apr. 1, ~~2001~~2002 to ~~Dec~~Apr.3130, ~~2001~~2002 Cumulative Since Filing OPERATING PAYROLL & TAX Actual Projected Actual Projected --------- ------------- ------ --------- ------ --------- (Note 1) Cash Receipts Collection of Accounts ~~Receivable~~ $ 5414,~~368~~669 $ 5414,~~368~~669 $ ~~40,000~~- $ 55,~~703~~762,~~794~~668 $ 56,532,000 Receivable Other ~~97,962~~400 ~~97,962~~400 ~~208,916~~- 67,~~009~~447,~~032~~563 24,~~895~~635,916 -------------- --------------- -------------- --------------- ------------- ------------- Total Cash Receipts ~~152~~15,~~330~~069 ~~152~~15,~~330~~069 ~~248,916~~0 6163,~~712~~210,~~826~~231 5961,~~427~~167,916 -------------- --------------- -------------- --------------- ------------- ------------ - - Cash Disbursements Total Payroll - 5251,~~171~~207 5251,~~171~~207 9240,~~690~~760 22,~~023~~229,~~583~~759 22,~~282~~484,~~890~~583 Leased Operators - - 4,861,230 4,890,000 Operating Expenses Fuel -(8,758) -(8,758) - 4,~~247~~238,~~114~~356 5,037,000 Occupancy costs 4112,~~811~~270 4112,~~811~~270 ~~233~~42,~~000~~500 12,~~870~~151,~~914~~751 2,~~272~~755,~~100~~600 Equipment Costs 91,~~632~~550 91,~~632~~550 ~~200~~5,000 2,~~134~~142,~~258~~761 2,~~696~~761,800 Insurance ~~173~~(33,~~322~~154) ~~173~~(33,~~322~~154) ~~150~~50,000 56,~~942~~042,~~612~~836 6,~~743~~993,800 Other Operating Expenses 453,~~954~~330 453,~~954~~330 7510,000 8,~~408~~486,~~014~~950 10,~~650~~805,998 -------------- --------------- -------------- --------------- ------------- ------------- Total Operating Expenses ~~270~~(24,~~719~~762) ~~270~~(24,~~719~~762) ~~658~~107,~~000~~500 2223,~~602~~062,~~912~~654 2728,~~400~~354,~~698~~198 Deposits with Key Vendors - - - 41,148 150,000 CAPEX - Equipment Refurbishment - - - 13,050 399,200 Deferred Rental and Leasing - - -34,000 63,789 1,~~414~~448,000 Costs Restructuring Costs ~~601~~11,~~555~~808 ~~124~~2,~~761~~226 ~~726~~14,~~316~~034 ~~563~~39,~~930~~500 47,~~433~~063,~~142~~843 79,642,~~530~~097 Remittance of Equipment Sales ~~- -~~ 6,~~488~~662,~~584~~766 - Proceeds to Secured Lender - - Inter - Account Transfer ~~176~~53,~~932~~433 (~~176~~53,~~932~~433) - -------------- --------------- -------------- --------------- ------------- ------------- Total Disbursements 140,~~049,206~~479 - 140,~~049,206~~479 1221,~~314,620~~760 6063,~~527~~998,~~438~~239 6467,~~179~~368,~~318~~078 -------------- --------------- -------------- --------------- ------------- ------------- Net Cash Flow/Requirements (~~896~~25,~~876~~410) - (~~896~~25,~~876~~410) (1221,~~065,704~~760) 1(788,~~185,388~~008) (46,~~751~~200,~~402~~162) Opening Cash 2153,~~997,946~~084 2153,~~997,946~~084 (24,~~368~~661,~~698~~402) 915,682 1,317,000 -------------- --------------- -------------- --------------- ------------- ------------- Closing Cash $ 2127,~~101,070~~674 $ 2127,~~101,070~~674 $ (34,~~434~~883,~~402~~162) $ 2127,~~101,070~~674 $ (34,~~434~~883,~~402~~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 04 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 $ 40,479 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 $ 40,479 =========== =========

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: Apr. 1, 2002 to Apr. 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.

~~THE~~Expressed ~~FOLLOWING~~in ~~SECTION~~USD ~~MUST~~Converted BE@ ~~COMPLETED~~1:1.1.51 ~~DISBURSEMENTS~~------------------------------------------------------------------------------------------------------ ~~FOR~~1 ~~CALCULATING~~3 ~~U.S.~~4 ~~TRUSTEE~~Dec ~~QUARTERLY~~6 ~~FEES:~~9 12 Operating Operating Operating Tax Matlack (~~FROM~~Mellon ~~CURRENT~~Operating ~~MONTH~~(First ~~ACTUAL~~Operating ~~COLUMN~~Bank of Nova Prefunding Inc. Lockbox) Q1(Mellon Q2DE) Q3Union) 04Mellon Scotia Mellon Working #145--2480 #8016-376-9 #200003263225 #00909073 #00820-15 #021-8181 Funds Note 1 Note 3 Note 4 Note 5 Note 6 Note 9 Note 10 Grand Total ------------------------------------------------------------------------------------------------------ ~~TOTAL~~BALANCE ~~DISBURSEMENTS~~PER BOOKS $ ~~150~~141,~~000~~041 $ 314,~~512~~890 $ 10,~~851~~823 ($ 2259,~~023~~421) $ 5,~~905~~848 $ 60 $ 300 $ 103,~~840~~481 ------------------------------------------------------------------------------------------------------------------------ BANK BALANCE $ 141,~~682~~041 ~~LESS:~~$ ~~TRANSFERS~~4,890 TO$ ~~DEBTOR~~10,823 $ 0 $ 5,848 $ 0 $0 $ 162,602 (+) DEPOSITS IN ~~POSSESSION~~$ ~~ACCOUNTS~~0 $ 0 $ 0 $ 0 ~~PLUS:~~$ ~~ESTATE~~0 ~~DISBURSEMENTS~~$ ~~MADE~~0 BYTRANSIT ~~OUTSIDE~~(-) ~~SOURCES~~OUTSTANDING (~~i.e.~~$ ~~from~~34,928) ~~escrow~~$ ~~accounts~~0 $ 0 $ 0 $ 0 $ 0 ($ 34,928) CHECKS OTHER $ 0 $ 0 $ 0 $ 0 $ 0 $ 0 --------- ------------ ------------ --------------------------------------------------------------------- ~~TOTAL~~ADJUSTED ~~DISBURSEMENTS~~BANK ~~FOR~~$ ~~CALCULATING~~106,113 ~~U.S.~~$ ~~TRUSTEE~~4,890 ~~QUARTERLY~~$ ~~FEES~~10,823 $ ~~150,000~~0 $ 315,~~512,851~~848 $ ~~22,023,905~~0 $ 60 $ 127,~~840,682~~674 ~~==========~~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: Apr. 1, 2002 to Apr. 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.

~~Expressed~~Current inCumulative ~~Expressed~~Month inFiling ~~USD~~to ~~USD~~Date ~~Converted @ Converted @ 1:1.51 1:1.1.51~~ ----- -------------- REVENUES Revenue (Net) $ 4,300 $ 40,040,921 -------------------------- ------------------------~~--------------~~ 1OPERATING 2EXPENSES 3Owned 4Compensation 50 69,795,625 ~~Operating~~Leased ~~Operating~~Operator ~~Operating~~Compensation ~~Operating~~0 ~~(Mellon~~5,000,307 ~~(Mellon~~Fuel ~~Canada~~Expense ~~Operating~~ (~~First~~8,758) ~~Operating~~3,002,342 ~~(Bank~~Misc. ofDirect ~~Nova~~Costs ~~Lockbox)~~0 ~~Lockbox)~~5,503,885 ~~(Mellon~~Cleaning ~~DE)~~Expenses ~~Union)~~0 ~~(Mellon)~~4,144,131 ~~Scotia)~~Mechanics ~~#145-2480~~Compensation ~~#01-600052~~0 ~~#8016-376-9~~1,266,834 ~~#2000032632253~~Misc. ~~#0090907~~Maintenance ~~#00820-15~~Expense ~~Note~~0 ~~1 Note~~ 2,189,685 ~~Note~~Equipment 3Costs ~~Note~~0 47,808,778 ~~Note~~Terminal 5Expenses ~~Note~~49,083 69,346,711 -------------------------- ------------------------ TOTAL OPERATING EXPENSES 40,325 48,058,298 -------------------------- ------------------------ ~~BALANCE~~GROSS ~~PER~~PROFIT ~~BOOKS~~/ $(LOSS) 1(36,~~934,320~~025) ~~$ 21,526 $ 176,409 $ 10,906~~ (~~$ 75~~8,~~026~~017,377) ~~$ 5,045~~ -------------------------- ------------------------ G&A EXPENSES 62,085 14,080,533 -------------------------- ------------------------- ~~BANK~~OPERATING ~~BALANCE~~PROFIT $/ ~~1,935,315 $ 22,658 $ 176,409 $ 10,906 $ 0 $ 9,112~~ (+LOSS) ~~DEPOSITS IN $ 0 $ 0 $ 0 $ 0 $ 0 $ 0 TRANSIT~~ (-98,110) ~~OUTSTANDING~~ (~~$ 49~~22,~~263~~097,910) $OTHER 0INCOME $/ 0EXPENSE $Gain/Loss 0on $Sale 0of ($Equipment 4(2,~~067~~375) ~~CHECKS~~13,468,093 ~~OTHER~~Other $Income/Deductions 0 $528,580 ~~0 $ 0 $ 0 $ 0 $ 0~~ -------------------------- ------------------------ TOTAL OTHER INCOME/EXPENSES (2,375) 13,996,673 --------------------------~~-------~~ ADJUSTED BANK $ 1,886,052 $ 22,658 $ 176,409 $ 10,906 $ 0 $ 5,045 BALANCE* ------------------------ PROFIT / (LOSS) (95,735) ($ 36,094,583) -------------------------- ------------------------~~--------- * 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~~

In re: Matlack Systems, Inc., et al. Case No. 01-1114 (MFW) Reporting Period: Apr. 1, 2002 to Apr. 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 4,300 1,607,430 X-Rail Revenue 0 986,185 Maintenance Revenue 0 323,999 ------------------------ ---------------------- 74,300 840,040,921 9------------------------ 10---------------------- 11Owned 12Compensation ~~Tax~~Driver ~~Tax~~Pay ~~Tax~~Hourly ~~Matlack~~0 ~~Payroll~~3,091,600 ~~Payroll~~Driver ~~Prefunding~~Overtime ~~Prefunding~~Pay ~~Prefunding~~0 ~~Inc.~~34,120 ~~(Mellon)~~Contractual ~~(Mellon)~~Pay ~~Mellon~~Mile ~~Mellon~~0 ~~Mellon~~3,554,726 ~~Working~~Fringe ~~#119-8127~~Benefits ~~#021-8376~~0 ~~#021-8181~~3,115,179 ~~#021~~-~~8309~~----------------------- ~~#021~~-~~8931~~--------------------- ~~Funds~~0 ~~Note~~9,795,625 7------------------------ ~~Note~~---------------------- 8Leased ~~Note~~Operator 9Comp ~~Note~~Leased 9Operator ~~Note~~Comp 90 ~~Note~~4,948,634 10Purchased ~~Grand~~Transportation ~~Total~~0 51,673 ------------------------ ---------------------- 0 5,000,307 ------------------------ ---------------------- $Fuel ~~29,478~~Expense $Fuel Terminal 0 $1,150,105 0Fuel $Outside 0(8,758) $1,820,865 Fuel Taxes 0 ~~$300~~3,904 $Oil 2and Oil Tax 0 27,~~102,958~~468 ------------------------ ---------------------- (8,758) 3,002,342 ------------------------ ---------------------- $Misc ~~71,590~~Direct $Costs 0Utility $Pay Hourly 0 $203,219 0Utility $Fringe Benefits 0 $7,902 Tire 0 2,~~225~~202,~~990~~439 $Hose 0 ($151,023 71Meals 0 218,~~590)~~725 $Lay Over 0 $611,616 Tolls 0 ($165,110 ~~124~~Fines 0 14,~~920)~~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 2Net Cleaning Interbranch 0 (1,~~101~~285) Environmental 0 128,~~070~~657 ------------------------ ---------------------- 0 4,144,131 ------------------------ ---------------------- ~~(NOTE~~Mechanics ~~11)~~Compensation ~~None~~Mechanics ~~None~~Pay ~~None~~0 ~~None~~772,715 ~~None~~Overtime ~~None~~Pay ~~ALL~~0 ~~ALL~~53,916 ~~None~~Fringe ~~None~~Benefits ~~None~~0 ~~None~~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: Apr. 1, 2002 to Apr. 30, 2002 STATEMENT OF OPERATIONS - continuation sheet

~~Current~~ Cumulative BREAKDOWN OF "OTHER" CATEGORY Month Filing to Date ----------------------------- ----- -------------- ~~REVENUES~~Misc ~~Revenue~~Maintenance ~~(Net)~~Expense $Parts ~~51,165~~Expense $0 401,~~013~~213,~~326~~644 ~~==========================~~Outside ~~========================~~Repairs ~~OPERATING~~0 ~~EXPENSES~~752,782 ~~Owned~~Tire ~~Compensation~~Repair ~~2,974~~0 989,~~795,564~~458 ~~Leased~~Shop ~~Operator~~Expense ~~Compensation~~ 0 5133,~~000,307~~801 ~~Fuel~~------------------------ ~~Expense~~---------------------- 0 32,~~011~~189,~~100~~685 ~~Misc.~~------------------------ ~~Direct~~---------------------- Equipment Costs Tractor Depreciation 0 559,~~503,885~~706 ~~Cleaning~~Tractor ~~Expenses~~Rent ~~1,304~~0 42,~~085~~541,~~041~~450 ~~Mechanics~~Trailer ~~Compensation~~Depreciation 980 1,~~266~~044,~~834~~877 ~~Misc.~~Trailer ~~Maintenance~~Rent ~~Expense~~ 0 2102,~~194,044~~087 ~~Equipment~~License ~~Costs~~ 0 7952,~~808,778~~435 ~~Terminal~~Permit ~~Expenses~~0 ~~(16~~96,~~543)~~312 9Interest 0 3,~~174~~011,~~692~~911 -------------------------- ------------------------ ~~TOTAL~~0 ~~OPERATING EXPENSES (12~~7,~~167) 47~~808,~~840,245~~778 -------------------------- ------------------------ ~~GROSS~~Terminal ~~PROFIT~~Expenses /Terminal ~~(LOSS)~~Salary 63& Fringe 0 3,~~332~~695,416 (7Utilities 2,~~826~~396 975,~~919)~~611 ~~==========================~~Communication ~~========================~~Equipment ~~G&A~~0 ~~EXPENSES~~102,886 ~~901~~Communication Usage 1,~~928~~129 11715,~~891~~187 Facility Maintenance 0 290,~~511~~991 Facility Occupancy 0 1,476,650 Transportation General 45,558 2,089,970 ------------------------ ---------------------- 49,083 9,346,711 ------------------------ ~~OPERATING~~---------------------- ~~PROFIT~~G&A /Expenses ~~(LOSS)~~Salaries Expense 46,079 5,982,124 Fringe Benefits 0 (~~838~~79,~~596~~434) ~~(19~~Communications Basic 66 75,~~718~~022 Communication Services 0 7,~~430)~~732 ~~OTHER~~Facilities ~~INCOME~~- /Rents ~~EXPENSE~~2,656 ~~Gain/Loss~~317,750 onGeneral ~~Sale~~Office ofSupplies ~~Equipment~~1,101 ~~(137~~43,~~906)~~837 15IBM Supplies 0 4,~~349~~147 Conventions & Seminars 0 14,~~371~~322 Postage 0 81,962 Travel & Other ~~Income~~1,023 184,644 Outside Services 9,279 4,854,343 Computer Software 0 36,225 General & Admin 0 199,933 Marketing Promotions 0 7,010 Legal 130 323,404 Insurance 0 288,363 Dues & Contributions 0 361 Depreciation 0 118,339 Depreciation - Leasehold 0 40,740 Computer Equipment Rent 1,751 359,618 Other Expense/~~Deductions~~Terminal Exp. 0 ~~528~~1,~~580~~220,091 -------------------------- ------------------------ ~~TOTAL OTHER INCOME/EXPENSES (137~~62,~~906)~~085 1514,~~877~~080,~~951~~533 -------------------------- ----------------------~~-- PROFIT / (LOSS) ($ 700,690) ($ 35,596,381) ========================== ========================~~

In re: Matlack Systems, Inc., et al. Case No. 01-1114 (MFW) Reporting Period: Apr. 1, 2002 to Apr. 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.

~~STATEMENT~~BOOK OFVALUE ~~OPERATIONS~~AT -END ~~continuation~~OF ~~sheet~~BOOK ~~Cumulative~~VALUE ~~BREAKDOWN~~ON OFASSETS ~~"OTHER"~~CURRENT ~~CATEGORY~~REPORTING ~~Month~~MONTH ~~Filing~~PETITION toDATE ~~Date~~ ----------------------------- ----- ------------------------------------------------------------------------- ~~Revenue~~CURRENT ~~Owned~~ASSETS ~~Linehaul~~Cash ~~Revenue~~$ ~~0 20~~103,~~035,706~~481 ~~Owned~~$ ~~Accessorial~~389,571 ~~Revenue~~Restricted 0Cash 438,~~477~~144,~~068~~952 ~~Leased~~Accounts ~~Linehaul~~Receivable ~~Revenue~~(Net) 0 618,~~865~~045,~~934~~306 ~~Leased~~Inventories ~~Accessorial Revenue~~ 0 ~~774~~3,~~372 Cleaning Revenue 0 4~~639,~~970,227~~142 ~~Other~~Prepaid ~~Operating~~Expenses ~~Revenue 51~~390,~~165~~000 12,~~579~~108,~~835~~548 X-~~Rail Revenue 0 986,185 Maintenance Revenue 0 323,999~~ -------------------------------- ----------------------------- 51TOTAL CURRENT ASSETS 38,~~165~~637,433 4024,~~013~~182,~~326~~567 --------------------------------- ----------------------------- ~~Owned~~PROPERTY ~~Compensation~~AND ~~Driver~~EQUIPMENT ~~Pay~~Revenue ~~Hourly~~Equipment - Cost 0 398,~~091~~199,~~600~~269 ~~Driver~~Less: ~~Overtime~~Accumulated ~~Pay~~Depreciation (Revenue) 0 34(75,~~120~~767,277) ~~Contractual~~Other ~~Pay~~Property ~~Mile~~& 0Equipment 3- Cost 2,~~554~~322,~~726~~465 ~~Fringe~~72,633,319 ~~Benefits~~Less: 2Accumulated Depreciation (Other) (1,~~974~~330,730) 3(41,~~115~~326,~~118~~073) --------------------------------- ----------------------------- 2TOTAL PROPERTY & EQUIPMENT 991,~~974~~735 953,~~795~~739,~~564~~238 --------------------------------- ----------------------------- ~~Leased~~OTHER ~~Operator~~ASSETS ~~Comp~~Goodwill ~~Leased~~0 ~~Operator~~744,016 ~~Comp~~Other 0Assets 4400,~~948~~000 937,~~634~~839 ~~Purchased~~--------------------------------- ~~Transportation~~----------------------------- 0TOTAL 51OTHER ASSETS 400,~~673~~000 1,681,855 --------------------------------- ----------------------------- 0TOTAL 5ASSETS $ 40,~~000~~030,~~307~~168 $ 79,603,660 --------------------------------- ----------------------------- ~~Fuel~~BOOK ~~Expense~~VALUE ~~Fuel~~AT ~~Terminal~~END 0OF BOOK VALUE ON LIABILITIES AND OWNER EQUITY CURRENT REPORTING MONTH PETITION DATE LIABILITIES NOT SUBJECT TO COMPROMISE (Postpetition) Accounts Payable 1,~~150~~280,~~105~~117 ~~Fuel~~Accrued ~~Outside~~Wages 0& Benefits 408,694 Accrued Interest 3,011,910 Accrued Professional Fees (Note 1) 573,829~~,623~~ ~~Fuel~~Accrued Taxes 0(refer 3to FORM MOR-4) 214,~~904~~370 ~~Oil~~Accrued ~~and~~Insurance, ~~Oil~~Environmental ~~Tax~~& 0Other 27(937,~~468~~767) Amounts Due to Insiders (Note 1) --------------------------------- ----------------------------- 0TOTAL 3POSTPETITION LIABILITIES 4,~~011~~551,~~100~~153 0 --------------------------------- ----------------------------- ~~Misc~~LIABILITIES ~~Direct~~SUBJECT ~~Costs~~TO ~~Utility~~COMPROMISE ~~Pay~~(Pre-Petition) ~~Hourly~~Secured 0Debt ~~203~~46,~~219~~234,256 ~~Utility Fringe Benefits 0 7~~46,~~902~~234,256 ~~Tire~~Priority 0Debt 2,~~202~~272,~~439~~119 ~~Hose 0 151~~9,~~023 Meals 0 218~~330,~~725~~355 ~~Lay~~Unsecured ~~Over~~Debt ~~0 611~~32,~~616~~153,819 ~~Tolls 0 165~~33,~~110~~125,644 ~~Fines~~--------------------------------- 0----------------------------- ~~14,452~~TOTAL ~~Mileage~~PRE-PETITION ~~Taxes~~LIABILITIES ~~0 112~~80,~~494~~660,193 ~~Insurance 0 1~~88,~~816~~690,~~905~~255 --------------------------------- ----------------------------- ~~0 5,503,885~~ --------------------------------- ----------------------------- ~~Cleaning~~TOTAL ~~Expenses~~LIABILITIES ~~Cleaners~~85,211,346 ~~Pay 0 1~~88,~~038~~690,~~915~~255 ~~Overtime~~--------------------------------- ~~Pay~~----------------------------- 0OWNER ~~42,431~~EQUITY ~~Fringe~~Capital ~~Benefits~~Stock ~~306~~8,814,434 ~~690~~8,~~965~~814,434 ~~Cleaning~~Capital ~~Supplies~~Surplus 010,619,341 ~~476~~10,~~089~~619,341 ~~Waste~~Retained ~~Treatment~~Earnings ~~998~~- 1Pre-Petition (28,~~023~~520,~~586~~370) ~~Outside~~(28,520,370) ~~Contractors~~Retained 0Earnings ~~713,733~~- ~~Net~~Post-Petition ~~Cleaning~~(36,094,583) ~~Interbranch~~Post-Petition 0Contributions (~~1,285~~Distributions) ~~Environmental~~(Draws) 0(attach ~~100,607~~schedule) ------------------------ -------- -------------- ~~1,304 4,085,041~~ ---------------- NET OWNER EQUITY (45,181,178) (9,086,595) -------- ------------------------ ~~Mechanics Compensation Mechanics Pay 0 772,715 Overtime Pay 0 53,916 Fringe Benefits 98 440,203 Net Mechanics Interbranch 0 0~~ ------------------------ ------ TOTAL LIABILITIES AND OWNERS' EQUITY $40,030,168 $79,603,660 ---------------- ~~98 1,266,834~~ ---------------- -------- ----------------------

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: Apr. 1, 2002 to Apr. 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.

~~Cumulative~~Beginning ~~BREAKDOWN~~Amount OFEnding ~~"OTHER"~~Tax ~~CATEGORY~~Withheld ~~Month~~Amount ~~Filing~~Date toCheck ~~Date~~No. Tax Liability or Accrued Paid Paid or EFT Liability --------- ---------- ----~~------~~ ----- ------ --------- ~~Misc~~Federal ~~Maintenance~~Withholding ~~Expense~~0 ~~Parts~~5,717 ~~Expense~~5,717 Various EFT 0 FICA - Employee 0 1,~~218~~807 1,~~003~~807 ~~Outside~~Various ~~Repairs~~EFT 0 ~~752,782~~FICA ~~Tire~~- ~~Repair~~Employer 0 891,~~458~~807 ~~Shop~~1,807 ~~Expense~~Various EFT 0 ~~133~~Unemployment 1,~~801~~177 0 1,177 0 Other 0 0 0 0 ------------ ------------ ------------ ------------ 0------------- 2------------ Total Federal Taxes 1,~~194~~177 9,~~044~~331 10,508 0 ------------ ------------ ------------ ------------ ~~Equipment~~------------- ~~Costs~~------------ ~~Tractor~~State ~~Depreciation~~and 0Local 59Withholding 20,~~706~~386 ~~Tractor~~1,486 ~~Rent~~20,386 0Various 2EFT 1,~~541,450~~486 ~~Trailer~~Sales ~~Depreciation~~72,596 0 10 Various 72,~~044,877~~596 ~~Trailer~~Income ~~Rent~~0 0 ~~102~~0 0 Unemployment 3,~~087~~367 ~~License~~0 3,367 0 ~~952~~Real & Personal Property 125,~~435~~195 ~~Permit~~0 0 96Various 125,~~312~~195 ~~Interest~~Other 390,771 0 30 Various 390,~~011,911~~771 ------------ ------------ ------------ ------------ ~~0 7,808,778~~ ------------- ------------ Total State and Local 611,074 1,486 23,753 590,048 ------------ ------------ Terminal Expenses Terminal Salary & Fringe 4,779 3,695,416 Utilities 3,455 948,333 Communication Equipment 0 101,824 Communication Usage (15) 715,518 Facility Maintenance 0 290,991 Facility Occupancy 434 1,395,862 Transportation General (25,196) 2,026,748 ------------ ------------ ------------- ------------ ~~(16~~Total Taxes 611,~~543)~~821 910,~~174~~817 34,~~692~~261 590,048 ------------ ------------ ------------ ------------ ~~G&A~~------------- ~~Expenses~~------------ ~~Salaries~~SUMMARY ~~Expense~~OF ~~217,064~~UNPAID ~~4,133,253~~POSTPETITION ~~Fringe~~DEBITS ~~Benefits~~Attach ~~12,298~~aged ~~464,032~~listing ~~Communications~~of ~~Basic~~accounts 0payable. ~~74,956~~Number ~~Communication~~of ~~Services~~Days 0Past ~~7,732~~Due ~~Facilities~~Current 0-30 ~~Rents~~31-60 061-90 ~~294,855~~Over ~~General~~90 ~~Office~~Total ~~Supplies~~------- ~~1,887~~---- ~~32,899~~----- ~~IBM~~----- ~~Supplies~~------- 0----- ~~4,147~~Accounts ~~Conventions~~Payable ~~& Seminars 0 14~~1,~~322~~280,117 ~~Postage~~ 0 811,~~962~~280,117 ~~Travel~~Accrued Wages & ~~Other~~Benefits 0408,694 ~~173~~408,~~747~~694 ~~Outside~~Accrued ~~Services~~Interest ~~655~~3,~~249~~011,910 43,~~040~~011,~~876~~910 ~~Computer~~Accrued ~~Software~~Professional 0Fees 36573,~~225~~829 ~~General~~573,829 &Accrued ~~Admin~~Taxes ~~565~~(refer ~~196,416~~to ~~Marketing~~FORM ~~Promotions~~MOR-4) ~~0 7~~214,~~010~~370 ~~Legal 1~~214,~~858~~370 ~~310,723~~Accrued Insurance ~~0 288~~,~~363~~ ~~Dues~~Environmental & ~~Contributions 0 361 Depreciation 0 118~~(937,~~339~~767) ~~Depreciation - Leasehold 0 40~~(937,~~740~~767) ~~Computer Equipment Rent 2,907 350,462~~ Other ~~Expense/Terminal~~------------ ~~Exp.~~------------ ~~0 1,220,091~~ ------------ ------------ ------------- ------------ ~~901~~Total Post-Petition Debts 4,~~928~~551,153 110 0 0 4,~~891~~551,~~511~~153 ------------ ------------ ------------ ------------ ------------- ------------

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: Apr. 1, 2002 to Apr. 30, 2002

~~BOOK~~ACCOUNTS ~~VALUE~~RECEIVABLE ATRECONCILIATION ~~END~~AND OFAGING ~~BOOK~~Accounts ~~VALUE~~Receivable ONReconciliation ~~ASSETS~~Amount ~~CURRENT REPORTING MONTH PETITION DATE~~ ------ ----------------------- ----- -------- ~~CURRENT~~Total ~~ASSETS~~Accounts ~~Cash~~Receivable $at ~~2,102,958~~the $beginning ~~389,571~~of ~~Restricted~~the ~~Cash~~reporting ~~33,794,239~~period ~~Accounts~~$ ~~Receivable (Net)~~ 0 ~~18,045,306~~+ ~~Inventories~~Amounts 0billed ~~3,639,142~~during ~~Prepaid~~the ~~Expenses~~period ~~411,342~~0 ~~2,108,548~~(Note ~~---------------------------------~~1) -~~----------------------------~~ ~~TOTAL~~Amounts ~~CURRENT~~collected ~~ASSETS~~during ~~36,308,539~~the ~~24,182,567~~period ~~---------------------------------~~0 -~~----------------------------~~ ~~PROPERTY~~Bad ~~AND~~Debt ~~EQUIPMENT~~and ~~Revenue~~other ~~Equipment~~ write-offs ~~Cost~~ 0 ~~98,199,269~~+ ~~Less:~~Change ~~Accumulated~~in ~~Depreciation~~Reserve ~~(Revenue)~~ 0 ~~(75,767,277)~~- Other ~~Property~~during &the ~~Equipment~~period -$ ~~Cost~~0 ~~8,544,024~~Total ~~72,633,319~~Accounts ~~Less:~~Receivable ~~Accumulated~~at ~~Depreciation~~the ~~(Other)~~end ~~(3,898,030)~~of ~~(41,326,073)~~the ~~---------------------------------~~reporting ~~-----------------------------~~period ~~TOTAL~~$ ~~PROPERTY~~0 &Accounts ~~EQUIPMENT~~Receivable ~~4,645,994~~Aging ~~53,739,238~~Amount -------------------------~~--------~~ ------~~-----------------------~~ ~~OTHER ASSETS Goodwill~~ 0 ~~744,016~~- ~~Other~~30 ~~Assets~~days ~~400,000~~old ~~937,839~~0 ~~---------------------------------~~31 -~~----------------------------~~ ~~TOTAL~~60 ~~OTHER~~days ~~ASSETS~~old ~~400,000~~0 ~~1,681,855~~61 -~~--------------------------------~~ ~~-----------------------------~~90 ~~TOTAL~~days ~~ASSETS~~old $0 ~~41,354,533~~91 $+ ~~79,603,660~~days ~~=================================~~old ~~=============================~~0 ~~BOOK~~0 ~~VALUE~~Foreign ATexchange, ~~END~~Revenue ~~OF BOOK VALUE ON LIABILITIES AND OWNER EQUITY CURRENT REPORTING MONTH PETITION DATE LIABILITIES NOT SUBJECT TO COMPROMISE (Postpetition) Accounts Payable 1~~Recognition,~~396,705~~ ~~Accrued~~Sales ~~Wages~~Accrual Adjustments & ~~Benefits~~Write-offs ~~830,934~~0 ~~Accrued~~Amount ~~Interest~~considered ~~3,011,910~~uncollectible ~~Accrued Professional Fees~~ (~~Note~~Bad 1Debt) ~~767,085~~0 ~~Accrued~~Accounts ~~Taxes~~Receivable (~~refer to FORM MOR-4~~Net) ~~274,085~~$ ~~Accrued~~0 ~~Insurance,~~DEBTOR ~~Environmental~~QUESTIONNAIRE &Must ~~Other~~be ~~(932,278)~~completed ~~Amounts~~each ~~Due~~month toYes ~~Insiders~~No ~~(Note 1)~~ ---------------------------- ----- --~~---------------------------~~ ~~TOTAL~~1. ~~POSTPETITION~~Have ~~LIABILITIES~~any ~~5,348,441~~assets 0been ~~---------------------------------~~sold ~~-----------------------------~~or ~~LIABILITIES~~transferred ~~SUBJECT~~outside TOthe ~~COMPROMISE~~normal ~~(Pre-Petition)~~course ~~Secured~~X ~~Debt~~of ~~46,234,256~~business ~~46,234,256~~this ~~Priority~~reporting ~~Debt~~period? ~~2,300,994~~If 9yes,~~330,355~~ ~~Unsecured~~provide ~~Debt~~an ~~32,153,819~~explanation ~~33,125,644~~below. ~~---------------------------------~~2 ~~-----------------------------~~Have ~~TOTAL~~any ~~PRE-PETITION~~funds ~~LIABILITIES~~been ~~80,689,068~~disbursed ~~88,690,255~~from ~~---------------------------------~~any ~~-----------------------------~~account ~~---------------------------------~~other ~~-----------------------------~~than ~~TOTAL~~a ~~LIABILITIES~~debtor ~~86,037,509~~X ~~88,690,255~~in ~~=================================~~possession ~~=============================~~account ~~OWNER~~this ~~EQUITY~~reporting ~~Capital~~period? ~~Stock~~If 8yes,~~814,434~~ ~~8,814,434~~provide ~~Capital~~an ~~Surplus~~explanation ~~10,619,341~~below. ~~10,619,341~~3. ~~Retained~~Have ~~Earnings~~all -postpetition ~~Pre-Petition~~tax ~~(28,520,370)~~returns ~~(28,520,370)~~been ~~Retained~~timely ~~Earnings~~filed? -If ~~Post-Petition (35~~no,~~596,381)~~ ~~Post-Petition~~X ~~Contributions~~provide ~~(Distributions)~~an ~~(Draws)~~explanation ~~(attach~~below. ~~schedule)~~4. ~~--------------------------------~~Are ~~------------------------------~~workers ~~NET~~compensation, ~~OWNER~~general ~~EQUITY~~liability ~~(44,682,976)~~and ~~(9,086,595)~~other ~~=================================~~necessary ~~=============================~~X ~~TOTAL~~insurance ~~LIABILITIES~~coverages ~~AND~~in ~~OWNERS'~~effect? ~~EQUITY~~If ~~$41~~no,~~354,533~~ ~~$79,603,660~~provide ~~=================================~~an ~~=============================~~explanation below.

Beginning Amount Ending Tax Withheld Amount Date Check No. Tax Liability or Accrued Paid Paid or EFT Liability --------- ---------- ---- ---- ------ --------- Federal Withholding 0 55,296 44,640 Various EFT 10,656 FICA - Employee 0 15,256 15,256 Various EFT 0 FICA - Employer 0 15,256 15,256 Various EFT 0 Unemployment 0 0 0 0 Other 0 0 0 0 ------------ ------------ ------------ ------------ ------------- ------------ Total Federal Taxes 0 85,808 75,152 10,656 ------------ ------------ ------------ ------------ ------------- ------------ State and Local Withholding 2,508 21,839 14,500 Various EFT 9,847 Sales 72,596 0 0 Various 72,596 Income 0 0 0 0 Unemployment 0 0 0 0 Real & Personal Property 151,385 0 0 Various 151,385 Other 390,771 0 0 Various 390,771 ------------ ------------ ------------ ------------ ------------- ------------ Total State and Local 617,260 21,839 14,500 624,599 ------------ ------------ ------------ ------------ ------------- ------------ Total Taxes 617,260 107,647 89,652 635,255 ------------ ------------ ------------ ------------ ------------- ------------

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 1,396,705 0 1,396,705 Accrued Wages & Benefits 830,934 830,934 Accrued Interest 3,011,910 3,011,910 Accrued Professional Fees 767,085 767,085 Accrued Taxes (refer to FORM MOR-4) 274,085 274,085 Accrued Insurance, Environmental & (932,278) (932,278) Other ------------ ------------ ------------ ------------ ------------- ------------ Total Post-Petition Debts 5,348,441 0 0 0 5,348,441 ------------ ------------ ------------ ------------ ------------- ------------

Accounts Receivable Reconciliation Amount Total Accounts Receivable at the beginning of the reporting period $ 48,944 + Amounts billed during the period 0 (Note 1) - Amounts collected during the period (54,368) - Bad Debt and other write-offs 5,424 + Change in Reserve 0 - Other during the period $ 0 ---------- Total Accounts Receivable at the end of the reporting period $ 0 ========== Accounts Receivable Aging Amount 0 - 30 days old 0 31 - 60 days old 0 61 - 90 days old 0 91 + days old 0 0 Foreign exchange, Revenue Recognition, Sales Accrual Adjustments & Write-offs 0 Amount considered uncollectible (Bad Debt) 0 ---------- Accounts Receivable (Net) $ 0 ==========

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.

Filing Compare · MATLACK SYSTEMS INC