EXHIBIT 99.1
MONTHLY OPERATING REPORT
CASE NAME: KITTY HAWK, INC. ACCRUAL BASIS
CASE NUMBER: 400-42141-BJH 02/13/95, RWD, 2/96
JUDGE: BARBARA J. HOUSER
UNITED STATES BANKRUPTCY COURT
NORTHERN DISTRICT OF TEXAS
SIXTH DIVISION
MONTHLY OPERATING REPORT
MONTH ENDING: SEPTEMBER 30, 2000
IN ACCORDANCE WITH TITLE 28, SECTION 1746, OF THE UNITED STATES CODE, I DECLARE
UNDER PENALTY OF PERJURY THAT I HAVE EXAMINED THE FOLLOWING MONTHLY OPERATING
REPORT (ACCRUAL BASIS-1 THROUGH ACCRUAL BASIS-7) AND THE ACCOMPANYING
ATTACHMENTS AND, TO THE BEST OF MY KNOWLEDGE, THESE DOCUMENTS ARE TRUE, CORRECT
AND COMPLETE. DECLARATION OF THE PREPARER (OTHER THAN RESPONSIBLE PARTY): IS
BASED ON ALL INFORMATION OF WHICH PREPARER HAS ANY KNOWLEDGE.
RESPONSIBLE PARTY:
/s/ DREW KEITH CFO
--------------------------------------- -------------------------------------
ORIGINAL SIGNATURE OF RESPONSIBLE PARTY TITLE
Drew Keith 10/20/00
--------------------------------------- -------------------------------------
PRINTED NAME OF RESPONSIBLE PARTY DATE
PREPARER:
/S/ JESSICA L. WILSON Chief Accounting Officer
--------------------------------------- -------------------------------------
ORIGINAL SIGNATURE OF PREPARER TITLE
Jessica L. Wilson 10/20/00
--------------------------------------- -------------------------------------
PRINTED NAME OF PREPARER DATE
<PAGE>
MONTHLY OPERATING REPORT
CASE NAME: KITTY HAWK, INC. ACCRUAL BASIS-1
CASE NUMBER: 400-42141-BJH 02/13/95, RWD, 2/96
<TABLE>
<CAPTION>
COMPARATIVE BALANCE SHEET
------------------------------------------------------------------------------------------------------------------
MONTH MONTH MONTH
SCHEDULE --------------------------------------------------------
ASSETS AMOUNT JULY 2000 AUGUST 2000 SEPTEMBER 2000
------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
1. UNRESTRICTED CASH $13,401,586 $47,725,174 $46,191,821 $47,704,367
------------------------------------------------------------------------------------------------------------------
2. RESTRICTED CASH $0 $0 $0
------------------------------------------------------------------------------------------------------------------
3. TOTAL CASH $13,401,586 $47,725,174 $46,191,821 $47,704,367
------------------------------------------------------------------------------------------------------------------
4. ACCOUNTS RECEIVABLE (NET) ($11,899,615) ($11,912,223) ($12,000,082)
------------------------------------------------------------------------------------------------------------------
5. INVENTORY ($816,667) ($916,667) ($1,016,667)
------------------------------------------------------------------------------------------------------------------
6. NOTES RECEIVABLE $15,000 $15,000 $15,000 $15,000
------------------------------------------------------------------------------------------------------------------
7. PREPAID EXPENSES $300,363 $286,917 $420,662
------------------------------------------------------------------------------------------------------------------
8. OTHER (ATTACH LIST) $422,186,692 $368,414,869 $370,835,468 $373,916,290
------------------------------------------------------------------------------------------------------------------
9. TOTAL CURRENT ASSETS $435,603,278 $403,739,124 $404,500,316 $409,039,570
------------------------------------------------------------------------------------------------------------------
10. PROPERTY, PLANT & EQUIPMENT $2,425,652 $2,865,674 $2,865,674 $2,865,674
------------------------------------------------------------------------------------------------------------------
11. LESS: ACCUMULATED
DEPRECIATION/DEPLETION $582,967 $631,988 $680,322
------------------------------------------------------------------------------------------------------------------
12. NET PROPERTY, PLANT &
EQUIPMENT $2,425,652 $2,282,707 $2,233,686 $2,185,352
------------------------------------------------------------------------------------------------------------------
13. DUE FROM INSIDERS $62,465 $293,261 $219,367 $219,367
------------------------------------------------------------------------------------------------------------------
14. OTHER ASSETS - NET OF
AMORTIZATION (ATTACH LIST) $10,967,208 $10,579,216 $10,494,032 $10,408,848
------------------------------------------------------------------------------------------------------------------
15. OTHER (ATTACH LIST) $138,370,015 $138,370,015 $138,370,015 $138,370,015
------------------------------------------------------------------------------------------------------------------
16. TOTAL ASSETS $587,428,618 $555,264,323 $555,817,416 $560,223,152
------------------------------------------------------------------------------------------------------------------
POSTPETITION LIABILITIES
------------------------------------------------------------------------------------------------------------------
17. ACCOUNTS PAYABLE ($1,048,252) ($262,726) $2,926,946
------------------------------------------------------------------------------------------------------------------
18. TAXES PAYABLE $0 $0 $0
------------------------------------------------------------------------------------------------------------------
19. NOTES PAYABLE $0 $0 $0
------------------------------------------------------------------------------------------------------------------
20. PROFESSIONAL FEES $1,277,000 $345,000 $929,444
------------------------------------------------------------------------------------------------------------------
21. SECURED DEBT $0 $0 $0
------------------------------------------------------------------------------------------------------------------
22. OTHER (ATTACH LIST) $2,346,619 $3,019,094 $3,667,046
------------------------------------------------------------------------------------------------------------------
23. TOTAL POSTPETITION
LIABILITIES $2,575,367 $3,101,368 $7,523,436
------------------------------------------------------------------------------------------------------------------
PREPETITION LIABILITIES
------------------------------------------------------------------------------------------------------------------
24. SECURED DEBT $466,119,468 $416,251,006 $416,251,006 $416,251,006
------------------------------------------------------------------------------------------------------------------
25. PRIORITY DEBT $29,661 $0 $0 $0
------------------------------------------------------------------------------------------------------------------
26. UNSECURED DEBT $22,580,547 $2,245,799 $2,246,026 $2,232,268
------------------------------------------------------------------------------------------------------------------
27. OTHER (ATTACH LIST) $0 $35,306,098 $35,319,820 $35,319,820
------------------------------------------------------------------------------------------------------------------
28. TOTAL PREPETITION LIABILITIES $488,729,676 $453,802,903 $453,816,852 $453,803,094
------------------------------------------------------------------------------------------------------------------
29. TOTAL LIABILITIES $488,729,676 $456,378,270 $456,918,220 $461,326,530
------------------------------------------------------------------------------------------------------------------
EQUITY
------------------------------------------------------------------------------------------------------------------
30. PREPETITION OWNERS' EQUITY $98,899,692 $98,899,692 $98,899,692
------------------------------------------------------------------------------------------------------------------
31. POSTPETITION CUMULATIVE
PROFIT OR (LOSS) ($13,639) ($496) ($3,070)
------------------------------------------------------------------------------------------------------------------
32. DIRECT CHARGES TO EQUITY
(ATTACH EXPLANATION)
------------------------------------------------------------------------------------------------------------------
33. TOTAL EQUITY $0 $98,886,053 $98,899,196 $98,896,622
------------------------------------------------------------------------------------------------------------------
34. TOTAL LIABILITIES &
OWNERS' EQUITY $488,729,676 $555,264,323 $555,817,416 $560,223,152
------------------------------------------------------------------------------------------------------------------
</TABLE>
<PAGE>
MONTHLY OPERATING REPORT
CASE NAME: KITTY HAWK, INC. ACCRUAL BASIS-2
CASE NUMBER: 400-42141-BJH 02/13/95, RWD, 2/96
<TABLE>
<CAPTION>
INCOME STATEMENT
------------------------------------------------------------------------------------------------------
MONTH MONTH MONTH
---------------------------------------------- QUARTER
REVENUES JULY 2000 AUGUST 2000 SEPTEMBER 2000 TOTAL
------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
1. GROSS REVENUES $0 $0 $0 $0
------------------------------------------------------------------------------------------------------
2. LESS: RETURNS & DISCOUNTS $0 $0 $0 $0
------------------------------------------------------------------------------------------------------
3. NET REVENUE $0 $0 $0 $0
------------------------------------------------------------------------------------------------------
COST OF GOODS SOLD
------------------------------------------------------------------------------------------------------
4. MATERIAL $0 $0 $0 $0
------------------------------------------------------------------------------------------------------
5. DIRECT LABOR $0 $0 $0 $0
------------------------------------------------------------------------------------------------------
6. DIRECT OVERHEAD $0 $0 $0 $0
------------------------------------------------------------------------------------------------------
7. TOTAL COST OF GOODS SOLD $0 $0 $0 $0
------------------------------------------------------------------------------------------------------
8. GROSS PROFIT $0 $0 $0 $0
------------------------------------------------------------------------------------------------------
OPERATING EXPENSES
------------------------------------------------------------------------------------------------------
9. OFFICER/INSIDER COMPENSATION $85,488 $83,334 $74,167 $242,989
------------------------------------------------------------------------------------------------------
10. SELLING & MARKETING $0 $0 $0 $0
------------------------------------------------------------------------------------------------------
11. GENERAL & ADMINISTRATIVE ($1,050,722) ($1,313,429) ($134,906) ($2,499,057)
------------------------------------------------------------------------------------------------------
12. RENT & LEASE $21,502 $21,502 $21,502 $64,506
------------------------------------------------------------------------------------------------------
13. OTHER (ATTACH LIST) $0 $0 $0 $0
------------------------------------------------------------------------------------------------------
14. TOTAL OPERATING EXPENSES ($943,732) ($1,208,593) ($39,237) ($2,191,562)
------------------------------------------------------------------------------------------------------
15. INCOME BEFORE NON-OPERATING
INCOME & EXPENSE $943,732 $1,208,593 $39,237 $2,191,562
------------------------------------------------------------------------------------------------------
OTHER INCOME & EXPENSES
------------------------------------------------------------------------------------------------------
16. NON-OPERATING INCOME (ATT. LIST) ($208,368) ($337,655) ($215,274) ($761,297)
------------------------------------------------------------------------------------------------------
17. NON-OPERATING EXPENSE (ATT. LIST) $0 $0 $0 $0
------------------------------------------------------------------------------------------------------
18. INTEREST EXPENSE $116,620 $246,088 $107,186 $469,894
------------------------------------------------------------------------------------------------------
19. DEPRECIATION/DEPLETION $47,648 $49,020 $48,334 $145,002
------------------------------------------------------------------------------------------------------
20. AMORTIZATION $91,567 $91,567 $91,567 $274,701
------------------------------------------------------------------------------------------------------
21. OTHER (ATTACH LIST) $0 $0 $0 $0
------------------------------------------------------------------------------------------------------
22. NET OTHER INCOME & EXPENSES $47,467 $49,020 $31,813 $128,300
------------------------------------------------------------------------------------------------------
REORGANIZATION EXPENSES
------------------------------------------------------------------------------------------------------
23. PROFESSIONAL FEES $913,831 $1,146,430 $0 $2,060,261
------------------------------------------------------------------------------------------------------
24. U.S. TRUSTEE FEES $0 $0 $10,000 $10,000
------------------------------------------------------------------------------------------------------
25. OTHER (ATTACH LIST) $0 $0 $0 $0
------------------------------------------------------------------------------------------------------
26. TOTAL REORGANIZATION EXPENSES $913,831 $1,146,430 $10,000 $2,070,261
------------------------------------------------------------------------------------------------------
27. INCOME TAX $0 $0 $0 $0
------------------------------------------------------------------------------------------------------
28. NET PROFIT (LOSS) ($17,566) $13,143 ($2,576) ($6,999)
------------------------------------------------------------------------------------------------------
</TABLE>
<PAGE>
MONTHLY OPERATING REPORT
CASE NAME: KITTY HAWK, INC. ACCRUAL BASIS-3
CASE NUMBER: 400-42141-BJH 02/13/95, RWD, 2/96
<TABLE>
<CAPTION>
MONTH MONTH MONTH
CASH RECEIPTS AND ------------------------------------------------- QUARTER
DISBURSEMENTS JULY 2000 AUGUST 2000 SEPTEMBER 2000 TOTAL
----------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
1. CASH - BEGINNING OF MONTH $38,394,776 $47,725,174 $46,191,821 $38,394,776
----------------------------------------------------------------------------------------------------------
RECEIPTS FROM OPERATIONS
----------------------------------------------------------------------------------------------------------
2. CASH SALES $0 $0 $0 $0
----------------------------------------------------------------------------------------------------------
COLLECTION OF ACCOUNTS RECEIVABLE
----------------------------------------------------------------------------------------------------------
3. PREPETITION $0 $0 $0 $0
----------------------------------------------------------------------------------------------------------
4. POSTPETITION $0 $0 $0 $0
----------------------------------------------------------------------------------------------------------
5. TOTAL OPERATING RECEIPTS $0 $0 $0 $0
----------------------------------------------------------------------------------------------------------
NON - OPERATING RECEIPTS
----------------------------------------------------------------------------------------------------------
6. LOANS & ADVANCES (ATTACH LIST) $0 $0 $0 $0
----------------------------------------------------------------------------------------------------------
7. SALE OF ASSETS $0 $0 $0 $0
----------------------------------------------------------------------------------------------------------
8. OTHER (ATTACH LIST) $34,741,091 $31,473,418 $32,889,620 $99,104,129
----------------------------------------------------------------------------------------------------------
9. TOTAL NON-OPERATING RECEIPTS $34,741,091 $31,473,418 $32,889,620 $99,104,129
----------------------------------------------------------------------------------------------------------
10. TOTAL RECEIPTS $34,741,091 $31,473,418 $32,889,620 $99,104,129
----------------------------------------------------------------------------------------------------------
11. TOTAL CASH AVAILABLE $73,135,867 $79,198,592 $79,081,441 $137,498,905
----------------------------------------------------------------------------------------------------------
OPERATING DISBURSEMENTS
----------------------------------------------------------------------------------------------------------
12. NET PAYROLL $3,613,151 $3,685,060 $3,699,021 $10,997,232
----------------------------------------------------------------------------------------------------------
13. PAYROLL TAXES PAID $1,526,251 $1,483,915 $1,509,848 $4,520,014
----------------------------------------------------------------------------------------------------------
14. SALES, USE & OTHER TAXES PAID $74,434 $121,434 $38,512 $234,380
----------------------------------------------------------------------------------------------------------
15. SECURED/RENTAL/LEASES $1,392,334 $1,755,959 $1,783,782 $4,932,075
----------------------------------------------------------------------------------------------------------
16. UTILITIES $169,330 $245,713 $206,876 $621,919
----------------------------------------------------------------------------------------------------------
17. INSURANCE $655,938 $1,011,980 $791,428 $2,459,346
----------------------------------------------------------------------------------------------------------
18. INVENTORY PURCHASES $98,840 $0 $804,715 $903,555
----------------------------------------------------------------------------------------------------------
19. VEHICLE EXPENSES $0 $0 $0 $0
----------------------------------------------------------------------------------------------------------
20. TRAVEL $1,128,416 $1,357,193 $1,066,879 $3,552,488
----------------------------------------------------------------------------------------------------------
21. ENTERTAINMENT $0 $0 $0 $0
----------------------------------------------------------------------------------------------------------
22. REPAIRS & MAINTENANCE $3,518,517 $4,798,921 $4,665,613 $12,983,051
----------------------------------------------------------------------------------------------------------
23. SUPPLIES $77,440 $107,637 $41,622 $226,699
----------------------------------------------------------------------------------------------------------
24. ADVERTISING $8,395 $6,198 $1,519 $16,112
----------------------------------------------------------------------------------------------------------
25. OTHER (ATTACH LIST) $12,985,397 $18,432,761 $16,271,357 $47,689,515
----------------------------------------------------------------------------------------------------------
26. TOTAL OPERATING DISBURSEMENTS $25,248,443 $33,006,771 $30,881,172 $89,136,386
----------------------------------------------------------------------------------------------------------
REORGANIZATION EXPENSES
----------------------------------------------------------------------------------------------------------
27. PROFESSIONAL FEES $150,000 $0 $495,902 $645,902
----------------------------------------------------------------------------------------------------------
28. U.S. TRUSTEE FEES $12,250 $0 $0 $12,250
----------------------------------------------------------------------------------------------------------
29. OTHER (ATTACH LIST) $0 $0 $0 $0
----------------------------------------------------------------------------------------------------------
30. TOTAL REORGANIZATION EXPENSES $162,250 $0 $495,902 $658,152
----------------------------------------------------------------------------------------------------------
31. TOTAL DISBURSEMENTS $25,410,693 $33,006,771 $31,377,074 $89,794,538
----------------------------------------------------------------------------------------------------------
32. NET CASH FLOW $9,330,398 ($1,533,353) $1,512,546 $9,309,591
----------------------------------------------------------------------------------------------------------
33. CASH - END OF MONTH $47,725,174 $46,191,821 $47,704,367 $47,704,367
----------------------------------------------------------------------------------------------------------
</TABLE>
<PAGE>
MONTHLY OPERATING REPORT
CASE NAME: KITTY HAWK, INC. ACCRUAL BASIS-4
CASE NUMBER: 400-42141-BJH 02/13/95, RWD, 2/96
<TABLE>
<CAPTION>
MONTH MONTH MONTH
SCHEDULE ----------------------------------------------
ACCOUNTS RECEIVABLE AGING AMOUNT JULY 2000 AUGUST 2000 SEPTEMBER 2000
------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
1. 0-30 $0 $0 $0
------------------------------------------------------------------------------------------------------------------
2. 31-60 $0 $0 $0
------------------------------------------------------------------------------------------------------------------
3. 61-90 $0 $0 $0
------------------------------------------------------------------------------------------------------------------
4. 91+ $0 $0 $0
------------------------------------------------------------------------------------------------------------------
5. TOTAL ACCOUNTS RECEIVABLE $0 $0 $0 $0
------------------------------------------------------------------------------------------------------------------
6. AMOUNT CONSIDERED UNCOLLECTIBLE $11,899,615 $11,912,223 $12,000,082
------------------------------------------------------------------------------------------------------------------
7. ACCOUNTS RECEIVABLE (NET) $0 ($11,899,615) ($11,912,223) ($12,000,082)
------------------------------------------------------------------------------------------------------------------
AGING OF POSTPETITION TAXES AND PAYABLES MONTH: September 2000
------------------------------------------------------------------------------------------------------------------
0-30 31-60 61-90 91+
TAXES PAYABLE DAYS DAYS DAYS DAYS TOTAL
------------------------------------------------------------------------------------------------------------------
1. FEDERAL $0 $0 $0 $0 $0
------------------------------------------------------------------------------------------------------------------
2. STATE $0 $0 $0 $0 $0
------------------------------------------------------------------------------------------------------------------
3. LOCAL $0 $0 $0 $0 $0
------------------------------------------------------------------------------------------------------------------
4. OTHER (ATTACH LIST) $0 $0 $0 $0 $0
------------------------------------------------------------------------------------------------------------------
5. TOTAL TAXES PAYABLE $0 $0 $0 $0 $0
------------------------------------------------------------------------------------------------------------------
6. ACCOUNTS PAYABLE $2,134,833 $749,724 ($147,710) $190,099 $2,926,946
------------------------------------------------------------------------------------------------------------------
STATUS OF POSTPETITION TAXES MONTH: September 2000
------------------------------------------------------------------------------------------------------------------
BEGINNING AMOUNT ENDING
TAX WITHHELD AND/ AMOUNT TAX
FEDERAL LIABILITY* OR ACCRUED PAID LIABILITY
------------------------------------------------------------------------------------------------------------------
1. WITHHOLDING** $0 $113,015 $113,015 $0
------------------------------------------------------------------------------------------------------------------
2. FICA-EMPLOYEE** $0 $0 $0 $0
------------------------------------------------------------------------------------------------------------------
3. FICA-EMPLOYER** $0 $0 $0 $0
------------------------------------------------------------------------------------------------------------------
4. UNEMPLOYMENT $0 $0 $0 $0
------------------------------------------------------------------------------------------------------------------
5. INCOME $0 $0 $0 $0
------------------------------------------------------------------------------------------------------------------
6. OTHER (ATTACH LIST) $0 $0 $0 $0
------------------------------------------------------------------------------------------------------------------
7. TOTAL FEDERAL TAXES $0 $113,015 $113,015 $0
------------------------------------------------------------------------------------------------------------------
STATE AND LOCAL
------------------------------------------------------------------------------------------------------------------
8. WITHHOLDING $0 $0 $0 $0
------------------------------------------------------------------------------------------------------------------
9. SALES $0 $0 $0 $0
------------------------------------------------------------------------------------------------------------------
10. EXCISE $0 $0 $0 $0
------------------------------------------------------------------------------------------------------------------
11. UNEMPLOYMENT $0 $0 $0 $0
------------------------------------------------------------------------------------------------------------------
12. REAL PROPERTY $0 $0 $0 $0
------------------------------------------------------------------------------------------------------------------
13. PERSONAL PROPERTY $0 $0 $0 $0
------------------------------------------------------------------------------------------------------------------
14. OTHER (ATTACH LIST) $0 $0 $0 $0
------------------------------------------------------------------------------------------------------------------
15. TOTAL STATE & LOCAL $0 $0 $0 $0
------------------------------------------------------------------------------------------------------------------
16. TOTAL TAXES $0 $113,015 $113,015 $0
------------------------------------------------------------------------------------------------------------------
</TABLE>
* The beginning tax liability should represent the liability from the prior
month or, if this is the first operating report, the amount should be zero.
** Attach photocopies of IRS Form 6123 or your FTD coupon and payment receipt
to verify payment or deposit.
<PAGE>
MONTHLY OPERATING REPORT
CASE NAME: KITTY HAWK, INC. ACCRUAL BASIS-5
CASE NUMBER: 400-42141-BJH 02/13/95, RWD, 2/96
The debtor in possession must complete the reconciliation below for each bank
account, including all general, payroll and tax accounts, as well as all savings
and investment accounts, money market accounts, certificates of deposit,
government obligations, etc. Accounts with restricted funds should be identified
by placing an asterisk next to the account number. Attach additional sheets if
necessary.
<TABLE>
<CAPTION>
MONTH: September 2000
BANK RECONCILIATIONS
Account #1 Account #2 Account #3
------------------------------------------------------------------------------------------------------------
A. BANK: Bank One Bank One Wells Fargo
------------------------------------------------------------------------------------------
B. ACCOUNT NUMBER: 100140334 9319959434 4417-881463 TOTAL
------------------------------------------------------------------------------------------
C. PURPOSE (TYPE): Operating Disbursement Operating
------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
1. BALANCE PER BANK STATEMENT $1,022,543 $50,000 $20,375 $1,227,530
------------------------------------------------------------------------------------------------------------
2. ADD: TOTAL DEPOSITS NOT CREDITED $0 $0 $0 $0
------------------------------------------------------------------------------------------------------------
3. SUBTRACT: OUTSTANDING CHECKS $2,592,927 $0 $0 $2,683,060
------------------------------------------------------------------------------------------------------------
4. OTHER RECONCILING ITEMS $14,008 $0 ($19,905) ($5,897)
------------------------------------------------------------------------------------------------------------
5. MONTH END BALANCE PER BOOKS ($1,556,376) $50,000 $470 ($1,505,906)
------------------------------------------------------------------------------------------------------------
6. NUMBER OF LAST CHECK WRITTEN No checks 15692 No checks
------------------------------------------------------------------------------------------------------------
INVESTMENT ACCOUNTS
------------------------------------------------------------------------------------------------------------
DATE OF TYPE OF PURCHASE CURRENT
BANK, ACCOUNT NAME & NUMBER PURCHASE INSTRUMENT PRICE VALUE
------------------------------------------------------------------------------------------------------------
7. Wells Fargo Certificate of Deposit CD $200,000 $202,564
------------------------------------------------------------------------------------------------------------
8. Bank One 9/30/00 Overnight Sweep $48,962,230 $48,962,230
------------------------------------------------------------------------------------------------------------
9. N/A
------------------------------------------------------------------------------------------------------------
10. N/A
------------------------------------------------------------------------------------------------------------
11. TOTAL INVESTMENTS $49,162,230 $49,164,794
------------------------------------------------------------------------------------------------------------
CASH
------------------------------------------------------------------------------------------------------------
12. CURRENCY ON HAND $1,000
------------------------------------------------------------------------------------------------------------
13. TOTAL CASH - END OF MONTH $47,704,367
------------------------------------------------------------------------------------------------------------
</TABLE>
<PAGE>
MONTHLY OPERATING REPORT
CASE NAME: KITTY HAWK, INC. ACCRUAL BASIS-5
CASE NUMBER: 400-42141-BJH 02/13/95, RWD, 2/96
The debtor in possession must complete the reconciliation below for each bank
account, including all general, payroll and tax accounts, as well as all savings
and investment accounts, money market accounts, certificates of deposit,
government obligations, etc. Accounts with restricted funds should be identified
by placing an asterisk next to the account number. Attach additional sheets if
necessary.
<TABLE>
<CAPTION>
MONTH: September 2000
BANK RECONCILIATIONS
Account #4 Account #5 Account #6
--------------------------------------------------------------------------------------------------------------
A. BANK: Bank One Bank One Bank One
----------------------------------------------------------------------------------------------
B. ACCOUNT NUMBER: 1570695922 100129949/93199584 1586268961 TOTAL
----------------------------------------------------------------------------------------------
C. PURPOSE (TYPE): Payroll Health Insurance Flex Spending
--------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
1. BALANCE PER BANK STATEMENT $0 $90,133 $44,479 $134,612
--------------------------------------------------------------------------------------------------------------
2. ADD: TOTAL DEPOSITS NOT CREDITED $0 $0 $0 $0
--------------------------------------------------------------------------------------------------------------
3. SUBTRACT: OUTSTANDING CHECKS $0 $90,133 $0 $90,133
--------------------------------------------------------------------------------------------------------------
4. OTHER RECONCILING ITEMS $0 $0 $0 $0
--------------------------------------------------------------------------------------------------------------
5. MONTH END BALANCE PER BOOKS $0 $0 $44,479 $44,479
--------------------------------------------------------------------------------------------------------------
6. NUMBER OF LAST CHECK WRITTEN 64507 139267 1079
--------------------------------------------------------------------------------------------------------------
INVESTMENT ACCOUNTS
--------------------------------------------------------------------------------------------------------------
DATE OF TYPE OF PURCHASE CURRENT
BANK, ACCOUNT NAME & NUMBER PURCHASE INSTRUMENT PRICE VALUE
--------------------------------------------------------------------------------------------------------------
7.
--------------------------------------------------------------------------------------------------------------
8.
--------------------------------------------------------------------------------------------------------------
9.
--------------------------------------------------------------------------------------------------------------
10.
--------------------------------------------------------------------------------------------------------------
11. TOTAL INVESTMENTS $0 $0
--------------------------------------------------------------------------------------------------------------
CASH
--------------------------------------------------------------------------------------------------------------
12. CURRENCY ON HAND $0
--------------------------------------------------------------------------------------------------------------
--------------------------------------------------------------------------------------------------------------
13. TOTAL CASH - END OF MONTH $44,479
--------------------------------------------------------------------------------------------------------------
</TABLE>
<PAGE>
MONTHLY OPERATING REPORT
CASE NAME: KITTY HAWK, INC. ACCRUAL BASIS-5
CASE NUMBER: 400-42141-BJH 02/13/95, RWD, 2/96
The debtor in possession must complete the reconciliation below for each bank
account, including all general, payroll and tax accounts, as well as all savings
and investment accounts, money market accounts, certificates of deposit,
government obligations, etc. Accounts with restricted funds should be identified
by placing an asterisk next to the account number. Attach additional sheets if
necessary.
<TABLE>
<CAPTION>
MONTH: September 2000
BANK RECONCILIATIONS
Account #7 Account #8 Account #9
--------------------------------------------------------------------------------------------------------------
A. BANK: Bank One
---------------------------------------------------------------------------------------------
B. ACCOUNT NUMBER: 1586269860 TOTAL
--------------------------------------------------------------------------------------------------------------
C. PURPOSE (TYPE): COD
---------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
1. BALANCE PER BANK STATEMENT $0 $0 $0 $0
--------------------------------------------------------------------------------------------------------------
2. ADD: TOTAL DEPOSITS NOT CREDITED $0 $0 $0 $0
--------------------------------------------------------------------------------------------------------------
3. SUBTRACT: OUTSTANDING CHECKS $0 $0 $0 $0
--------------------------------------------------------------------------------------------------------------
4. OTHER RECONCILING ITEMS $0 $0 $0 $0
--------------------------------------------------------------------------------------------------------------
5. MONTH END BALANCE PER BOOKS $0 $0
--------------------------------------------------------------------------------------------------------------
6. NUMBER OF LAST CHECK WRITTEN 2109
--------------------------------------------------------------------------------------------------------------
INVESTMENTACCOUNTS
--------------------------------------------------------------------------------------------------------------
DATE OF TYPE OF PURCHASE CURRENT
BANK, ACCOUNT NAME & NUMBER PURCHASE INSTRUMENT PRICE VALUE
--------------------------------------------------------------------------------------------------------------
7.
--------------------------------------------------------------------------------------------------------------
8.
--------------------------------------------------------------------------------------------------------------
9.
--------------------------------------------------------------------------------------------------------------
10.
--------------------------------------------------------------------------------------------------------------
11. TOTAL INVESTMENTS $0 $0
--------------------------------------------------------------------------------------------------------------
CASH
--------------------------------------------------------------------------------------------------------------
12. CURRENCY ON HAND
--------------------------------------------------------------------------------------------------------------
--------------------------------------------------------------------------------------------------------------
13. TOTAL CASH - END OF MONTH $0
--------------------------------------------------------------------------------------------------------------
</TABLE>
<PAGE>
MONTHLY OPERATING REPORT
CASE NAME: KITTY HAWK, INC. ACCRUAL BASIS-6
CASE NUMBER: 400-42141-BJH 02/13/95, RWD, 2/96
<TABLE>
<CAPTION>
MONTH: September 2000
PAYMENTS TO INSIDERS AND PROFESSIONALS
OF THE TOTAL DISBURSEMENTS SHOWN FOR THE MONTH, LIST THE AMOUNT PAID TO
INSIDERS (AS DEFINED IN SECTION 101 (31) (A)-(F) OF THE U.S. BANKRUPTCY
CODE) AND TO PROFESSIONALS. ALSO, FOR PAYMENTS TO INSIDERS, IDENTIFY THE
TYPE OF COMPENSATION PAID (e.g. SALARY, BONUS, COMMISSIONS, INSURANCE,
HOUSING ALLOWANCE, TRAVEL, CAR ALLOWANCE, ETC.). ATTACH ADDITIONAL SHEETS
IF NECESSARY.
INSIDERS
----------------------------------------------------------------
TYPE OF AMOUNT TOTAL PAID
NAME PAYMENT PAID TO DATE
----------------------------------------------------------------
<S> <C> <C> <C>
1. Mike Clark Salary $7,917 $34,585
----------------------------------------------------------------
2. Jim Craig Salary $16,667 $83,335
----------------------------------------------------------------
3. Janie Garrard Salary $0 $2,625
----------------------------------------------------------------
4. Drew Keith Salary $16,250 $87,712
----------------------------------------------------------------
5 Lena Baker Salary $0 $7,500
----------------------------------------------------------------
6 Jim Reeves Salary $33,333 $166,665
----------------------------------------------------------------
7 John Turnipseed Salary $0 $41,668
----------------------------------------------------------------
8 TOTAL PAYMENTS
TO INSIDERS $74,167 $424,090
----------------------------------------------------------------
PROFESSIONALS
----------------------------------------------------------------------------------------------
DATE OF COURT TOTAL
ORDER AUTHORIZING AMOUNT AMOUNT TOTAL PAID INCURRED
NAME PAYMENT APPROVED PAID TO DATE & UNPAID *
----------------------------------------------------------------------------------------------
1. Lain Faulkner $72,938 $222,307 $0
----------------------------------------------------------------------------------------------
2. Haynes and Boone $0 $867,645 $515,000
----------------------------------------------------------------------------------------------
3. The Seabury Group $150,000 $750,000 $0
----------------------------------------------------------------------------------------------
4. Forshey & Prostock $0 $111,702 $66,703
----------------------------------------------------------------------------------------------
5 Price Waterhouse Coopers $0 $184,372 $109,699
----------------------------------------------------------------------------------------------
6 Jay Alix and Associates $0 $86,245 $64,126
----------------------------------------------------------------------------------------------
7 Andrews & Kurth $48,836 $386,832 $173,916
----------------------------------------------------------------------------------------------
8 Jenkins & Gilchrist $0 $45,995 $0
----------------------------------------------------------------------------------------------
9 Ford and Harrison $0 $94,095 $0
----------------------------------------------------------------------------------------------
10 Grant Thornton $50,000 $50,000 $0
----------------------------------------------------------------------------------------------
11 TOTAL PAYMENTS
TO PROFESSIONALS $0 $321,774 $2,799,193 $929,444
----------------------------------------------------------------------------------------------
* INCLUDE ALL FEES INCURRED, BOTH APPROVED AND UNAPPROVED
POSTPETITION STATUS OF SECURED NOTES, LEASES PAYABLE AND ADEQUATE
PROTECTION PAYMENTS
--------------------------------------------------------------------------------
SCHEDULED AMOUNTS
MONTHLY PAID TOTAL
PAYMENTS DURING UNPAID
NAME OF CREDITOR DUE MONTH POSTPETITION
--------------------------------------------------------------------------------
1. N/A
--------------------------------------------------------------------------------
2. N/A
--------------------------------------------------------------------------------
3. N/A
--------------------------------------------------------------------------------
4. N/A
--------------------------------------------------------------------------------
5. N/A
--------------------------------------------------------------------------------
6. TOTAL $0 $0 $0
--------------------------------------------------------------------------------
</TABLE>
<PAGE>
MONTHLY OPERATING REPORT
CASE NAME: KITTY HAWK, INC. ACCRUAL BASIS-7
CASE NUMBER: 400-42141-BJH 02/13/95, RWD, 2/96
MONTH: September 2000
QUESTIONNAIRE
--------------------------------------------------------------------------------
YES NO
--------------------------------------------------------------------------------
1. HAVE ANY ASSETS BEEN SOLD OR TRANSFERRED OUTSIDE
THE NORMAL COURSE OF BUSINESS THIS REPORTING PERIOD? X
--------------------------------------------------------------------------------
2. HAVE ANY FUNDS BEEN DISBURSED FROM ANY ACCOUNT
OTHER THAN A DEBTOR IN POSSESSION ACCOUNT? X
--------------------------------------------------------------------------------
3. ARE ANY POSTPETITION RECEIVABLES (ACCOUNTS, NOTES, OR
LOANS) DUE FROM RELATED PARTIES? X
--------------------------------------------------------------------------------
4. HAVE ANY PAYMENTS BEEN MADE ON PREPETITION LIABILITIES
THIS REPORTING PERIOD? X
--------------------------------------------------------------------------------
5. HAVE ANY POSTPETITION LOANS BEEN RECEIVED BY THE
DEBTOR FROM ANY PARTY? X
--------------------------------------------------------------------------------
6. ARE ANY POSTPETITION PAYROLL TAXES PAST DUE? X
--------------------------------------------------------------------------------
7. ARE ANY POSTPETITION STATE OR FEDERAL INCOME TAXES
PAST DUE? X
--------------------------------------------------------------------------------
8. ARE ANY POSTPETITION REAL ESTATE TAXES PAST DUE? X
--------------------------------------------------------------------------------
9. ARE ANY OTHER POSTPETITION TAXES PAST DUE? X
--------------------------------------------------------------------------------
10. ARE ANY AMOUNTS OWED TO POSTPETITION CREDITORS
DELINQUENT? X
--------------------------------------------------------------------------------
11. HAVE ANY PREPETITION TAXES BEEN PAID DURING THE
REPORTING PERIOD? X
--------------------------------------------------------------------------------
12. ARE ANY WAGE PAYMENTS PAST DUE? X
--------------------------------------------------------------------------------
IF THE ANSWER TO ANY OF THE ABOVE QUESTIONS IS "YES," PROVIDE A DETAILED
EXPLANATION OF EACH ITEM. ATTACH ADDITIONAL SHEETS IF NECESSARY.
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
INSURANCE
--------------------------------------------------------------------------------
YES NO
--------------------------------------------------------------------------------
1. ARE WORKER'S COMPENSATION, GENERAL LIABILITY AND OTHER
NECESSARY INSURANCE COVERAGES IN EFFECT? X
--------------------------------------------------------------------------------
2. ARE ALL PREMIUM PAYMENTS PAID CURRENT? X
--------------------------------------------------------------------------------
3. PLEASE ITEMIZE POLICIES BELOW.
--------------------------------------------------------------------------------
IF THE ANSWER TO ANY OF THE ABOVE QUESTIONS IS "NO," OR IF ANY POLICIES HAVE
BEEN CANCELLED OR NOT RENEWED DURING THIS REPORTING PERIOD, PROVIDE AN
EXPLANATION BELOW. ATTACH ADDITIONAL SHEETS IF NECESSARY.
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
INSTALLMENT PAYMENTS
------------------------------------------------------------------------------------------------------------------------------------
TYPE OF PAYMENT AMOUNT
POLICY CARRIER PERIOD COVERED & FREQUENCY
------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
121 Aircraft Insurance Aviation Agency 6/1/2000 - 5/31/2001 781,160 Quarterly
------------------------------------------------------------------------------------------------------------------------------------
Workers Comp Aviation Agency 1/1/2000 - 12/31/2000 124,382 Monthly
------------------------------------------------------------------------------------------------------------------------------------
Inland Marine/Property GCU 4/1/2000 - 3/31/2001 9,902 Monthly
------------------------------------------------------------------------------------------------------------------------------------
Professional Liab Aviation Agency 6/1/2000 - 5/31/2001 25,291 Annual
------------------------------------------------------------------------------------------------------------------------------------
135 Aircraft Insurance Aviation Agency 10/1/1999 - 9/30/2000 87,316 Quarterly
------------------------------------------------------------------------------------------------------------------------------------
Primary Auto Aviation Agency 4/1/2000 - 3/31/2001 10,827 Monthly
------------------------------------------------------------------------------------------------------------------------------------
Excess Auto Aviation Agency 4/1/2000 - 3/31/2001 29,870 Annual
------------------------------------------------------------------------------------------------------------------------------------
Medical Equipment Aviation Agency 3/29/2000 -3/29/2001 3,363 Annual
------------------------------------------------------------------------------------------------------------------------------------
Aggregate Claims Liab Reliastar 5/1/2000 - 4/30/2001 15,000 Annually
------------------------------------------------------------------------------------------------------------------------------------
Claims Admin Runout CIGNA 5/1/2000 - 4/30/2001 125,779 One time
------------------------------------------------------------------------------------------------------------------------------------
Pilot Long Term Disabl UNUM 5/1/2000 - 4/30/2001 7,975 Monthly
------------------------------------------------------------------------------------------------------------------------------------
Stop Loss Reliastar 5/1/2000 - 4/30/2001 31,635 Monthly
------------------------------------------------------------------------------------------------------------------------------------
Case Management Reliastar 5/1/2000 - 4/30/2001 1,329 Monthly
------------------------------------------------------------------------------------------------------------------------------------
Claims Administration Allied Benefit System 5/1/2000 - 4/30/2001 25,052 Monthly
------------------------------------------------------------------------------------------------------------------------------------
Life/AD&D CIGNA 5/1/2000 - 4/30/2001 11,732 Monthly
------------------------------------------------------------------------------------------------------------------------------------
EAP Behavioral Health Partners 5/1/2000 - 4/30/2001 2,941 Monthly
------------------------------------------------------------------------------------------------------------------------------------
Section 125 Admin Taxsaver 5/1/2000 - 4/30/2001 1,179 Monthly
------------------------------------------------------------------------------------------------------------------------------------
</TABLE>
<PAGE>
CASE NAME: KITTY HAWK, INC. FOOTNOTES SUPPLEMENT
CASE NUMBER: 400-42141-BJH ACCRUAL BASIS
MONTH: September 2000
ACCRUAL BASIS LINE
FORM NUMBER NUMBER FOOTNOTE/EXPLANATION
--------------------------------------------------------------------------------
3 8 All cash received into the each subsidiary cash
account is swept each night to Kitty Hawk, Inc.
Master Account
--------------------------------------------------------------------------------
3 31 All disbursements (either by wire transfer or check),
including payroll, are disbursed out of the Kitty
Hawk, Inc. controlled disbursement account.
--------------------------------------------------------------------------------
4 6 All assessments of uncollectible accounts receivable
are done at Kitty Hawk, Inc. All reserves are
recorded at Inc. and pushed down to Inc.'s
subsidiaries as deemed necessary.
--------------------------------------------------------------------------------
7 All insurance policies are carried in the name of
Kitty Hawk, Inc. and its subsidiaries. Therefore, they
are listed here accordingly.
--------------------------------------------------------------------------------
<PAGE>
CASE NAME: KITTY HAWK, INC.
CASE NUMBER: 400-42141
DETAILS OF OTHER ITEMS
ACCRUAL BASIS-1 September 2000
8. OTHER (ATTACH LIST) $ 373,916,290 Reported
----------------------
Intercompany Receivables 374,175,354
Escrow JRC 403,000
A/R Other 350,209
Misc A/R (8,909)
A/R Employees 853
A/R 401(k) Loan (25)
A/R Payroll advance 252
A/R Travel Advance 181
Deferred Taxes (1,682,277)
Deposits - Other 261,652
Deposits - Retainers 416,000
----------------------
373,916,290 Detail
----------------------
- Difference
14. OTHER ASSETS - NET OF
AMORTIZATION (ATTACH LIST) 10,408,848 Reported
----------------------
Loan organization costs 1,459,166
Bond offering costs 7,151,860
Non-compete - Beti Ward 335,423
Goodwill - KH Cargo 1,462,399
----------------------
10,408,848 Detail
----------------------
- Difference
15. OTHER (ATTACH LIST) 138,370,015
----------------------
Investment in KH Aircargo 1,000
Investment in KH International 81,974,302
Investment in Longhorn 2,266,436
Investment in KH Cargo 54,128,277
----------------------
138,370,015 Detail
----------------------
- Difference
22. OTHER (ATTACH LIST) $ 3,667,046 Reported
----------------------
Accrued expenses (232,914)
Accrued interest 3,835,572
Accrued health savings 60,757
A/P Aging reconciling item (28,152)
Accrued 401(k) 7,607
Accrued Salaries/Wages 24,176
----------------------
3,667,046 Detail
----------------------
- Difference
27. OTHER (ATTACH LIST) $ 35,319,820 Reported
----------------------
Deferred Taxes 37,136,131
Accrued Taxes payable (17,658,879)
Interest payable 15,842,568
----------------------
35,319,820 Detail
----------------------
- Difference
<PAGE>
CASE NAME: KITTY HAWK, INC.
CASE NUMBER: 400-42141
DETAILS OF OTHER ITEMS
ACCRUAL BASIS-2
16. NON-OPERATING INCOME (ATT. LIST) (215,274)Reported
----------------------
Interest Income (214,978)
Other Misc Income (296)
----------------------
(215,274)Detail
- Difference
ACCRUAL BASIS-3
8. OTHER (ATTACH LIST) 32,889,620 Reported
----------------------
Transfers from Charters 3,320,880
Transfers from Cargo 11,089,692
Transfers from Aircargo 13,346,939
Transfers from International 6,750
Transfers to LSI -
Cash deposits - non-lockbox 4,713,720
Interest income 214,345
Sale of 121 Certificate to Connie Kalitta 200,000
NSF Checks (2,706)
----------------------
32,889,620 Detail
----------------------
- Difference
----------------------
25. OTHER (ATTACH LIST) 16,271,357 Reported
----------------------
Inc. 401(k) 402,306
Employee Expenses/Relocation 36,480
Bank charges 7,364
Interest expense 8,859
Fuel 7,296,373
Professional fees 80,482
Ground Handling 2,394,489
Asset purchase - Engine 1,585,000
Shipping 126,312
Ondemand Charter costs 58,023
135 Airline costs 34,441
Equipment Rental 101,641
Building Rent and expenses 19,056
Contract Labor 807,317
Trucking 500,258
Customs/Parking/Landing 723,350
American Express Charges
Uniforms 15,908
Simulator/Communication/Other Training 252,881
Misc 30,217
Voided checks and corrections (108,799)
Board of Direcetors expenses 9,975
Customer refund 11,118
Shutdown costs 71,763
Deposits 132,025
Subcharter Aircraft 1,674,518
----------------------
16,271,357 Detail
- Difference
