EXHIBIT 99
FOR RELEASE NOVEMBER 14, 2000
Contact: Allen & Caron Inc. or Intrenet, Inc.
Matt Clawson (investors) Thomas J. Bell CFO
Len Hall (media) 513-576-6666
949-474-4300
INTRENET REPORTS ON STATUS OF REVIEW
OF ACCOUNTING AT ADS SUBSIDIARY
AND DELAY OF REPORT OF THIRD QUARTER RESULTS
MILFORD, OH (November 14, 2000) Intrenet Inc. (Nasdaq: INET) announced
today that its investigation into the accounting issues previously
disclosed regarding its subsidiary, Advanced Distribution System ("ADS"),
is progressing. Although the investigation is not complete, to date, there
is no indication that cash or other assets were misappropriated.
As the investigation is continuing, the Company cannot yet precisely
quantify the impact or timing of correcting accounting entries that may be
required. Nonetheless, management believes the entries when aggregated,
will not greatly exceed its initial estimate of $1.3 million. Management
also cannot be certain at this juncture about the particular accounting
periods at issue, but it appears that fiscal years 1998, 1999 and 2000 may
be impacted in varying degrees.
Following the Company's disclosure about ADS' accounting issues, Nasdaq
suspended trading in the Company's stock. Company officials recently
updated Nasdaq concerning the scope and status of the Company's
investigation. Based on those discussions, management does not anticipate
that Nasdaq will permit trading to resume while the accounting issues
remain under review or prior to the issuance of restated financial
statements, if such restatement is ultimately determined necessary by the
Company.
John Chandler, Intrenet's President and CEO, stated, "The accounting
entries in question appear to be an isolated attempt by two former
employees to enhance the reported profitability of the ADS subsidiary and
to mask delays in collecting receivables. We are, of course, disappointed
with this, but we are pleased that our recently initiated internal audit
function discovered these issues, enabling us to take appropriate
corrective action. Special counsel and the forensic accountants are
working with our independent auditors to ensure that these accounting
issues are appropriately addressed at the earliest possible time. We hope
to have the investigation completed within 30 days. However, until the
investigation is complete, the Company is unable to report its third
quarter results or file its quarterly report on Form 10-Q. After the
investigation is complete, the earnings will be released and the Form 10-Q
will be filed."
<PAGE>
As previously reported in its second quarter report on Form 10-Q the
Company was in default under certain financial covenant provisions of its
bank loan agreement. These defaults have continued and are expected to
continue for the remainder of 2000. As a result, the terms of the bank
credit agreement give the bank the right to demand payment of all
outstanding debt under the revolving line of credit and the term loan,
which totaled approximately $21.9 million at September 30, 2000. The
Company has informed the bank that it is vigorously pursuing replacement
financing. On November 14, 2000, the bank agreed to forbear from the
exercise of its remedies under the loan agreement through December 31, 2000
provided that the Company adheres to certain provisions contained in the
forbearance agreement. There can be no assurance, however, that the
Company will be able to comply with all such provisions or succeed in
obtaining replacement funding. As the Company continues to pursue
replacement financing it has also been negotiating with its lessors for
extended payment terms to help provide for its cash requirements for the
remainder of 2000.
Since its organization in 1983, Intrenet, Inc. has grown to become one of
the largest public flatbed carriers in North America, with revenues
exceeding a quarter of a billion dollars annually. Intrenet carries the
symbol INET, is listed on the NASDAQ Small Cap Market and is headquartered
in Milford, Ohio. The Company's subsidiaries include: Roadrunner
Trucking, Eck Miller Transportation, Advanced Distribution System,
Roadrunner Distribution Services and INET Logistics.
THIS PRESS RELEASE CONTAINS FORWARD LOOKING INFORMATION THAT IS SUBJECT TO
CERTAIN RISK AND UNCERTAINTIES THAT COULD CAUSE ACTUAL RESULTS TO DIFFER
FROM THOSE PROJECTED. WITHOUT LIMITATION, THESE RISKS AND UNCERTAINTIES
INCLUDE ECONOMIC FACTORS SUCH AS DOWNTURNS IN CUSTOMERS' BUSINESS CYCLES,
SURPLUS INVENTORIES, INFLATION, FUEL PRICE INCREASES, AND HIGHER INTEREST
RATES, THE RESALE VALUE OF THE COMPANY'S USED EQUIPMENT, THE AVAILABILITY
AND COMPENSATION OF QUALIFIED DRIVERS, AND COMPETITION FROM TRUCKING, RAIL,
AND INTERMODAL COMPETITORS. IN ADDITION, THE SCOPE AND TIMING OF THE
INVESTIGATION AND THE RESOLUTION OF ACCOUNTING ISSUES MAY BE AFFECTED BY
SUBSEQUENTLY DISCOVERED INFORMATION, THE AVAILABILITY OF INFORMATION AND
OTHER FACTORS. READERS SHOULD REVIEW AND CONSIDER THE VARIOUS DISCLOSURES
MADE BY THE COMPANY IN ITS PERIODIC REPORTS ON FORMS, 10-K AND 10-Q.
