EXHIBIT 99.4
MONTHLY OPERATING REPORT
-----------------------------------------
CASE NAME: KITTY HAWK INTERNATIONAL, INC. ACCRUAL BASIS
-----------------------------------------
CASE NUMBER: 400-42144 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: MAY 31, 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 7/3/00
--------------------------------------- ---------------------------------
PRINTED NAME OF RESPONSIBLE PARTY DATE
PREPARER:
/s/ JESSICA L. WILSON Corporate Controller
--------------------------------------- ---------------------------------
ORIGINAL SIGNATURE OF PREPARER TITLE
Jessica L. Wilson 7/3/00
--------------------------------------- ---------------------------------
PRINTED NAME OF PREPARER DATE
37
<PAGE>
MONTHLY OPERATING REPORT
-------------------------------------------
CASE NAME: KITTY HAWK INTERNATIONAL, INC. ACCRUAL BASIS-1
-------------------------------------------
CASE NUMBER: 400-42144 02/13/95, RWD, 2/96
-------------------------------------------
<TABLE>
<CAPTION>
COMPARATIVE BALANCE SHEET
---------------------------------------------------------------------------------------------------
SCHEDULE MONTH MONTH MONTH
----------------------------------------------
ASSETS AMOUNT MAY-00
---------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
1. UNRESTRICTED CASH ........... $ 40,098 $ 30,292
---------------------------------------------------------------------------------------------------
2. RESTRICTED CASH ............. $ 0
---------------------------------------------------------------------------------------------------
3. TOTAL CASH .................. $ 40,098 $ 30,292 $ 0 $ 0
---------------------------------------------------------------------------------------------------
4. ACCOUNTS RECEIVABLE (NET) .. $ 9,006,275 $ 8,330,743
---------------------------------------------------------------------------------------------------
5. INVENTORY ................... $ 20,429,725 $ 20,325,531
---------------------------------------------------------------------------------------------------
6. NOTES RECEIVABLE ............ $ 0
---------------------------------------------------------------------------------------------------
7. PREPAID EXPENSES ............ $ 68,645
---------------------------------------------------------------------------------------------------
8. OTHER (ATTACH LIST) ......... $ 21,367,511 ($347,687,876)
---------------------------------------------------------------------------------------------------
9. TOTAL CURRENT ASSETS ........ $ 50,843,609 ($318,932,665) $ 0 $ 0
---------------------------------------------------------------------------------------------------
10. PROPERTY, PLANT & EQUIPMENT . $ 474,988,760 $ 566,864,544
---------------------------------------------------------------------------------------------------
11. LESS: ACCUMULATED
DEPRECIATION/DEPLETION ...... $ 89,110,093
---------------------------------------------------------------------------------------------------
12. NET PROPERTY, PLANT &
EQUIPMENT ................... $ 474,988,760 $ 477,754,451 $ 0 $ 0
---------------------------------------------------------------------------------------------------
13. DUE FROM INSIDERS ........... $ 599,113
---------------------------------------------------------------------------------------------------
14. OTHER ASSETS - NET OF
AMORTIZATION (ATTACH LIST) . $ 0
---------------------------------------------------------------------------------------------------
15. OTHER (ATTACH LIST) ......... $ 0
---------------------------------------------------------------------------------------------------
16. TOTAL ASSETS ................ $ 525,832,369 $ 159,420,899 $ 0 $ 0
---------------------------------------------------------------------------------------------------
POSTPETITION LIABILITIES
---------------------------------------------------------------------------------------------------
17. ACCOUNTS PAYABLE ............ $ 29,892
---------------------------------------------------------------------------------------------------
18. TAXES PAYABLE ............... $ 24,303
---------------------------------------------------------------------------------------------------
19. NOTES PAYABLE ............... $ 0
---------------------------------------------------------------------------------------------------
20. PROFESSIONAL FEES .......... $ 0
---------------------------------------------------------------------------------------------------
21. SECURED DEBT ................ $ 0
---------------------------------------------------------------------------------------------------
22. OTHER (ATTACH LIST) ......... ($ 34,441)
---------------------------------------------------------------------------------------------------
23. TOTAL POSTPETITION
LIABILITIES ................. $ 19,754 $ 0 $ 0
---------------------------------------------------------------------------------------------------
PREPETITION LIABILITIES
---------------------------------------------------------------------------------------------------
24. SECURED DEBT ................ $ 23,187,921 $ 23,109,424
---------------------------------------------------------------------------------------------------
25. PRIORITY DEBT ............... $ 4,672,323 $ 0
---------------------------------------------------------------------------------------------------
26. UNSECURED DEBT .............. $ 392,188,633 $ 14,942,082
---------------------------------------------------------------------------------------------------
27. OTHER (ATTACH LIST) ......... $ 92,648,683
---------------------------------------------------------------------------------------------------
28. TOTAL PREPETITION LIABILITIES $ 420,048,877 $ 130,700,189 $ 0 $ 0
---------------------------------------------------------------------------------------------------
29. TOTAL LIABILITIES ........... $ 420,048,877 $ 130,719,943 $ 0 $ 0
---------------------------------------------------------------------------------------------------
EQUITY
---------------------------------------------------------------------------------------------------
30. PREPETITION OWNERS' EQUITY .. $ 29,200,132
---------------------------------------------------------------------------------------------------
31. POSTPETITION CUMULATIVE
PROFIT OR (LOSS) ............ ($ 499,176)
---------------------------------------------------------------------------------------------------
32. DIRECT CHARGES TO EQUITY
(ATTACH EXPLANATION)
---------------------------------------------------------------------------------------------------
33. TOTAL EQUITY ................ $ 0 $ 28,700,956 $ 0 $ 0
---------------------------------------------------------------------------------------------------
34. TOTAL LIABILITIES &
OWNERS' EQUITY .............. $ 420,048,877 $ 159,420,899 $ 0 $ 0
---------------------------------------------------------------------------------------------------
</TABLE>
38
<PAGE>
MONTHLY OPERATING REPORT
------------------------------------------
CASE NAME: KITTY HAWK INTERNATIONAL, INC. ACCRUAL BASIS-2
------------------------------------------
CASE NUMBER: 400-42144 02/13/95, RWD, 2/96
------------------------------------------
<TABLE>
<CAPTION>
INCOME STATEMENT
---------------------------------------------------------------------------------------
MONTH MONTH MONTH QUARTER
----------------------------------- TOTAL
<S> <C> <C> <C> <C>
REVENUES ............................ MAY-00
---------------------------------------------------------------------------------------
1. GROSS REVENUES .................. $ 2,405 $ 2,405
---------------------------------------------------------------------------------------
2. LESS: RETURNS & DISCOUNTS ....... $ 0 $ 0
---------------------------------------------------------------------------------------
3. NET REVENUE ..................... $ 2,405 $ 0 $ 0 $ 2,405
---------------------------------------------------------------------------------------
COST OF GOODS SOLD
---------------------------------------------------------------------------------------
4. MATERIAL ........................ $ 0 $ 0
---------------------------------------------------------------------------------------
5. DIRECT LABOR .................... $ 0 $ 0
---------------------------------------------------------------------------------------
6. DIRECT OVERHEAD ................. $ 0 $ 0
---------------------------------------------------------------------------------------
7. TOTAL COST OF GOODS SOLD ........ $ 0 $ 0 $ 0 $ 0
---------------------------------------------------------------------------------------
8. GROSS PROFIT .................... $ 2,405 $ 0 $ 0 $ 2,405
---------------------------------------------------------------------------------------
OPERATING EXPENSES
---------------------------------------------------------------------------------------
9. OFFICER/INSIDER COMPENSATION .... $ 17,200 $ 17,200
---------------------------------------------------------------------------------------
10. SELLING & MARKETING ............. $ 0 $ 0
---------------------------------------------------------------------------------------
11. GENERAL & ADMINISTRATIVE ........ $ 136,886 $ 136,886
---------------------------------------------------------------------------------------
12. RENT & LEASE .................... ($ 785) ($ 785)
---------------------------------------------------------------------------------------
13. OTHER (ATTACH LIST) ............. $ 59,617 $ 59,617
---------------------------------------------------------------------------------------
14. TOTAL OPERATING EXPENSES ........ $ 212,918 $ 0 $ 0 $ 212,918
---------------------------------------------------------------------------------------
15. INCOME BEFORE NON-OPERATING
INCOME & EXPENSE ................ ($210,513) $ 0 $ 0 ($210,513)
---------------------------------------------------------------------------------------
OTHER INCOME & EXPENSES
---------------------------------------------------------------------------------------
16. NON-OPERATING INCOME (ATT. LIST) ($ 2,866) ($ 2,866)
---------------------------------------------------------------------------------------
17. NON-OPERATING EXPENSE (ATT. LIST) $ 0 $ 0
---------------------------------------------------------------------------------------
18. INTEREST EXPENSE ................ $ 621,815 $ 621,815
---------------------------------------------------------------------------------------
19. DEPRECIATION/DEPLETION .......... $ 0 $ 0
---------------------------------------------------------------------------------------
20. AMORTIZATION .................... $ 0 $ 0
---------------------------------------------------------------------------------------
21. OTHER (ATTACH LIST) ............. $ 0 $ 0
---------------------------------------------------------------------------------------
22. NET OTHER INCOME & EXPENSES ..... $ 618,949 $ 0 $ 0 $ 618,949
---------------------------------------------------------------------------------------
REORGANIZATION EXPENSES
---------------------------------------------------------------------------------------
23. PROFESSIONAL FEES ............... $ 2,500 $ 2,500
---------------------------------------------------------------------------------------
24. U.S. TRUSTEE FEES ............... $ 0 $ 0
---------------------------------------------------------------------------------------
25. OTHER (ATTACH LIST) ............. $ 0 $ 0
---------------------------------------------------------------------------------------
26. TOTAL REORGANIZATION EXPENSES ... $ 2,500 $ 0 $ 0 $ 2,500
---------------------------------------------------------------------------------------
27. INCOME TAX ...................... ($332,786) ($332,786)
---------------------------------------------------------------------------------------
28. NET PROFIT (LOSS) ............... ($499,176) $ 0 $ 0 ($499,176)
---------------------------------------------------------------------------------------
</TABLE>
39
<PAGE>
MONTHLY OPERATING REPORT
-------------------------------------------
CASE NAME: KITTY HAWK INTERNATIONAL, INC. ACCRUAL BASIS-3
-------------------------------------------
CASE NUMBER: 400-42144 02/13/95, RWD, 2/96
-------------------------------------------
<TABLE>
<CAPTION>
--------------------------------------------------------------------------------------------
CASH RECEIPTS AND MONTH MONTH MONTH QUARTER
-----------------------------------------
DISBURSEMENTS MAY-00 TOTAL
--------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
1. CASH - BEGINNING OF MONTH .... $ 0 $ 0
--------------------------------------------------------------------------------------------
RECEIPTS FROM OPERATIONS
--------------------------------------------------------------------------------------------
2. CASH SALES ................... $ 0 $ 0
--------------------------------------------------------------------------------------------
COLLECTION OF ACCOUNTS RECEIVABLE
--------------------------------------------------------------------------------------------
3. PREPETITION .................. $ 1,014,030 $ 1,014,030
--------------------------------------------------------------------------------------------
4. POSTPETITION ................. $ 0 $ 0
--------------------------------------------------------------------------------------------
5. TOTAL OPERATING RECEIPTS ..... $ 1,014,030 $ 0 $ 0 $ 1,014,030
--------------------------------------------------------------------------------------------
NON - OPERATING RECEIPTS
--------------------------------------------------------------------------------------------
6. LOANS & ADVANCES (ATTACH LIST) $ 0 $ 0
--------------------------------------------------------------------------------------------
7. SALE OF ASSETS ............... $ 0 $ 0
--------------------------------------------------------------------------------------------
8. OTHER (ATTACH LIST) .......... ($1,014,030) ($1,014,030)
--------------------------------------------------------------------------------------------
9. TOTAL NON-OPERATING RECEIPTS . ($1,014,030) $ 0 $ 0 ($1,014,030)
--------------------------------------------------------------------------------------------
10. TOTAL RECEIPTS ............... $ 0 $ 0 $ 0 $ 0
--------------------------------------------------------------------------------------------
11. TOTAL CASH AVAILABLE ......... $ 0 $ 0 $ 0 $ 0
--------------------------------------------------------------------------------------------
OPERATING DISBURSEMENTS
--------------------------------------------------------------------------------------------
12. NET PAYROLL .................. $ 0 $ 0
--------------------------------------------------------------------------------------------
13. PAYROLL TAXES PAID ........... $ 0 $ 0
--------------------------------------------------------------------------------------------
14. SALES, USE & OTHER TAXES PAID $ 0 $ 0
--------------------------------------------------------------------------------------------
15. SECURED/RENTAL/LEASES ........ $ 0 $ 0
--------------------------------------------------------------------------------------------
16. UTILITIES .................... $ 0 $ 0
--------------------------------------------------------------------------------------------
17. INSURANCE .................... $ 0 $ 0
--------------------------------------------------------------------------------------------
18. INVENTORY PURCHASES .......... $ 0 $ 0
--------------------------------------------------------------------------------------------
19. VEHICLE EXPENSES ............. $ 0 $ 0
--------------------------------------------------------------------------------------------
20. TRAVEL ....................... $ 0 $ 0
--------------------------------------------------------------------------------------------
21. ENTERTAINMENT ................ $ 0 $ 0
--------------------------------------------------------------------------------------------
22. REPAIRS & MAINTENANCE ........ $ 0 $ 0
--------------------------------------------------------------------------------------------
23. SUPPLIES ..................... $ 0 $ 0
--------------------------------------------------------------------------------------------
24. ADVERTISING .................. $ 0 $ 0
--------------------------------------------------------------------------------------------
25. OTHER (ATTACH LIST) .......... $ 0 $ 0
--------------------------------------------------------------------------------------------
26. TOTAL OPERATING DISBURSEMENTS $ 0 $ 0 $ 0 $ 0
--------------------------------------------------------------------------------------------
REORGANIZATION EXPENSES
--------------------------------------------------------------------------------------------
27. PROFESSIONAL FEES ............ $ 0 $ 0
--------------------------------------------------------------------------------------------
28. U.S. TRUSTEE FEES ............ $ 0 $ 0
--------------------------------------------------------------------------------------------
29. OTHER (ATTACH LIST) .......... $ 0 $ 0
--------------------------------------------------------------------------------------------
30. TOTAL REORGANIZATION EXPENSES $ 0 $ 0 $ 0 $ 0
--------------------------------------------------------------------------------------------
31. TOTAL DISBURSEMENTS .......... $ 0 $ 0 $ 0 $ 0
--------------------------------------------------------------------------------------------
32. NET CASH FLOW ................ $ 0 $ 0 $ 0 $ 0
--------------------------------------------------------------------------------------------
33. CASH - END OF MONTH .......... $ 0 $ 0 $ 0 $ 0
--------------------------------------------------------------------------------------------
</TABLE>
40
<PAGE>
MONTHLY OPERATING REPORT
-------------------------------------------
CASE NAME: KITTY HAWK INTERNATIONAL, INC. ACCRUAL BASIS-4
-------------------------------------------
CASE NUMBER: 400-42144 02/13/95, RWD, 2/96
-------------------------------------------
<TABLE>
<CAPTION>
----------------------------------------------------------------------------------------
SCHEDULE MONTH MONTH MONTH
------------------------------------
ACCOUNTS RECEIVABLE AGING AMOUNT MAY-00
----------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
1. 0-30 ............................ $ 5,836
----------------------------------------------------------------------------------------
2. 31-60 ........................... $1,199,999
----------------------------------------------------------------------------------------
3. 61-90 ........................... $3,124,284
----------------------------------------------------------------------------------------
4. 91+ ............................. $4,006,462
----------------------------------------------------------------------------------------
5. TOTAL ACCOUNTS RECEIVABLE ....... $ 0 $8,336,581 $ 0 $ 0
----------------------------------------------------------------------------------------
6. AMOUNT CONSIDERED UNCOLLECTIBLE . $ 0
----------------------------------------------------------------------------------------
7. ACCOUNTS RECEIVABLE (NET) ....... $ 0 $8,336,581 $ 0 $ 0
----------------------------------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
AGING OF POSTPETITION TAXES AND PAYABLES MONTH: May-00
0-30 31-60 61-90 91+
TAXES PAYABLE DAYS DAYS DAYS DAYS TOTAL
----------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
1. FEDERAL ................... $24,303 $ 0 $ 0 $ 0 $24,303
----------------------------------------------------------------------------------
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 ....... $24,303 $ 0 $ 0 $ 0 $24,303
----------------------------------------------------------------------------------
6. ACCOUNTS PAYABLE .......... $29,892 $ 0 $ 0 $ 0 $29,892
----------------------------------------------------------------------------------
STATUS OF POSTPETITION TAXES MONTH: May-00
<CAPTION>
BEGINNING AMOUNT ENDING
TAX WITHHELD AND/ AMOUNT TAX
FEDERAL LIABILITY* OR ACCRUED PAID LIABILITY
--------- ---------- --------- ---------
<C> <C> <C> <C> <C>
1. WITHHOLDING** ..... $ 0 $ 55,186 $ 30,883 $ 24,303
------------------------------------------------------------------------------------
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 $ 55,186 $ 30,883 $ 24,303
------------------------------------------------------------------------------------
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 $ 55,186 $ 30,883 $ 24,303
------------------------------------------------------------------------------------
</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.
41
<PAGE>
MONTHLY OPERATING REPORT
-------------------------------------------
CASE NAME: KITTY HAWK INTERNATIONAL, INC. ACCRUAL BASIS-5
-------------------------------------------
CASE NUMBER: 400-42144 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: May-00
BANK RECONCILIATIONS
Account #1 Account #2 Account #3
--------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
A. BANK:............................. Bank One Bank One Bank One
------------------------------------------------------------------------------------------
B. ACCOUNT NUMBER:................... 1559691322 1559691330 9320014690 TOTAL
------------------------------------------------------------------------------------------
C. PURPOSE (TYPE):................... Deposit Payroll Health Insurance
--------------------------------------------------------------------------------------------------------
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 $0 $0
--------------------------------------------------------------------------------------------------------
6. NUMBER OF LAST CHECK WRITTEN ..... N/A - Lockbox only No activity Account closed
--------------------------------------------------------------------------------------------------------
<CAPTION>
INVESTMENT ACCOUNTS
--------------------------------------------------------------------------------------------------------
DATE OF TYPE OF PURCHASE CURRENT
BANK, ACCOUNT NAME & NUMBER PURCHASE INSTRUMENT PRICE VALUE
--------------------------------------------------------------------------------------------------------
<C> <C> <C>
7. N/A
--------------------------------------------------------------------------------------------------------
8. N/A
--------------------------------------------------------------------------------------------------------
9. N/A
--------------------------------------------------------------------------------------------------------
10. N/A
--------------------------------------------------------------------------------------------------------
11. TOTAL INVESTMENTS $0 $0
--------------------------------------------------------------------------------------------------------
<CAPTION>
CASH
--------------------------------------------------------------------------------------------------------
12. CURRENCY ON HAND $30,292
--------------------------------------------------------------------------------------------------------
13. TOTAL CASH - END OF MONTH $30,292
--------------------------------------------------------------------------------------------------------
</TABLE>
42
<PAGE>
MONTHLY OPERATING REPORT
-------------------------------------------
CASE NAME: KITTY HAWK INTERNATIONAL, INC. ACCRUAL BASIS-6
-------------------------------------------
CASE NUMBER: 400-42144 02/13/95, RWD, 2/96
-------------------------------------------
MONTH: May-00
-------------------------------------------
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
--------------------------------------------------------------------------------
1. Pete Sanderlin ............... Salary $ 8,600 $ 8,600
2. Tom Mealie ................... Salary $ 8,600 $ 8,600
3. N/A ..........................
4. N/A ..........................
5. N/A ..........................
6. TOTAL PAYMENTS
TO INSIDERS .................. $17,200 $17,200
<TABLE>
<CAPTION>
-------------------------------------------------------------------------------------
PROFESSIONALS
-------------------------------------------------------------------------------------
DATE OF COURT TOTAL
ORDER AUTHORIZING AMOUNT AMOUNT TOTAL PAID INCURRED
NAME PAYMENT APPROVED PAID TO DATE & UNPAID*
-------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
1. N/A ..................
-------------------------------------------------------------------------------------
2. N/A ..................
-------------------------------------------------------------------------------------
3. N/A ..................
-------------------------------------------------------------------------------------
4. N/A ..................
-------------------------------------------------------------------------------------
5. N/A ..................
-------------------------------------------------------------------------------------
6. TOTAL PAYMENTS
TO PROFESSIONALS ..... $0 $0 $0 $0
-------------------------------------------------------------------------------------
</TABLE>
* 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 ............................ $0
--------------------------------------------------------------------------------
2. N/A ............................ $0
--------------------------------------------------------------------------------
3. N/A ............................ $0
--------------------------------------------------------------------------------
4. N/A ............................ $0
--------------------------------------------------------------------------------
5. N/A ............................ $0
--------------------------------------------------------------------------------
6. TOTAL .......................... $0 $0 $0
--------------------------------------------------------------------------------
43
<PAGE>
MONTHLY OPERATING REPORT
-------------------------------------------
CASE NAME: KITTY HAWK INTERNATIONAL, INC. ACCRUAL BASIS-7
-------------------------------------------
CASE NUMBER: 400-42144 02/13/95, RWD, 2/96
-------------------------------------------
MONTH: May-00
<TABLE>
<CAPTION>
<S> <C>
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?
----------------------------------------------------------------------------------------------
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
----------------------------------------------------------------------------------------------
<CAPTION>
IF THE ANSWER TO ANY OF THE ABOVE QUESTIONS IS "YES," PROVIDE A DETAILED
EXPLANATION OF EACH ITEM. ATTACH ADDITIONAL SHEETS IF NECESSARY.
On 5/5, KH International ran a payroll which was subsequently reversed when the
Bankruptcy Court determined that the former employees of International who were
not considered "caretakers" would not be paid. Only 45 checks of the original
payroll (in excess of 300 checks) were released. ADP is currently auditing the
delinquency in the taxes due to the reversal and issuance of the payroll. Approx
$25,000 is delinquent.
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.
----------------------------------------------------------------------------------------------
----------------------------------------------------------------------------------------------
INSTALLMENT PAYMENTS
----------------------------------------------------------------------------------------------
TYPE OF PAYMENT AMOUNT
POLICY CARRIER PERIOD COVERED & FREQUENCY
----------------------------------------------------------------------------------------------
See Kitty Hawk, Inc. Case #400-42141
----------------------------------------------------------------------------------------------
----------------------------------------------------------------------------------------------
----------------------------------------------------------------------------------------------
----------------------------------------------------------------------------------------------
----------------------------------------------------------------------------------------------
----------------------------------------------------------------------------------------------
</TABLE>
44
<PAGE>
-------------------------------------------
CASE NAME: KITTY HAWK INTERNATIONAL, INC. FOOTNOTES SUPPLEMENT
-------------------------------------------
CASE NUMBER: 400-42144 ACCRUAL BASIS
-------------------------------------------
MONTH: May-00
--------------------------------------------------------------------------------
ACCRUAL BASIS LINE
FORM NUMBER NUMBER FOOTNOTE/EXPLANATION
--------------------------------------------------------------------------------
6 All Professional fees related to the
--------------------------------------------------------------------------------
Reorganization of the Company are disbursed out
--------------------------------------------------------------------------------
of Kitty Hawk, Inc. (Parent Company). Refer to
--------------------------------------------------------------------------------
Case # 400-42141
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
7 All insurance plans related to the Company are
--------------------------------------------------------------------------------
carried at Kitty Hawk, Inc. (Parent Company).
--------------------------------------------------------------------------------
Refer to Case # 400-42141.
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
General This operation closed in May of 2000. Costs
--------------------------------------------------------------------------------
incurred during May 2000 consisted of costs
--------------------------------------------------------------------------------
associated with shut down procedures.
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
3 8 All cash received into the Company cash
--------------------------------------------------------------------------------
accounts is swept each night to Kitty Hawk, Inc.
--------------------------------------------------------------------------------
Master Account (see Case #400-42141).
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
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 assessment of uncollectible accounts
--------------------------------------------------------------------------------
receivable are done at Kitty Hawk, Inc. Refer to
--------------------------------------------------------------------------------
Case #400-4214. All reserves are recorded at
--------------------------------------------------------------------------------
Inc. and pushed down to Inc.'s subsidiaries as
--------------------------------------------------------------------------------
deemed necessary.
--------------------------------------------------------------------------------
45
<PAGE>
CASE NAME: KITTY HAWK INTERNATIONAL, INC.
CASE NUMBER: 00-42144
DETAILS OF OTHER ITEMS
ACCRUAL BASIS-1
8. OTHER (ATTACH LIST) .............................. $(347,687,876)Reported
-------------
Intercompany Receivables .................... (375,646,858)
A/R Senior Noteholders ...................... 168,372
A/R Other ................................... (316,446)
A/R 401(k) Loan ............................. (10,181)
A/R Employees ............................... (1,470)
A/R Insurance ............................... 133,954
A/R Payroll Advance ......................... 679
A/R Travel Advance .......................... 43
A/R Pass Thru billings ...................... (114,500)
Fuel Inventory .............................. 25,430
Fuel Intoplane suspense ..................... 9,580
Deferred Taxes .............................. 13,097,746
Aircraft held for resale .................... 13,798,267
Intangible Brazil Landings .................. 377,745
Loan Org Costs .............................. 158,840
Deposits - Landing Fees ..................... 5,016
Deposits - Aircraft ......................... 584,321
Accum Amortization .......................... (376,729)
Security Deposit ............................ 418,316
-------------
(347,687,875)Detail
-------------
(1)Difference
22. OTHER (ATTACH LIST) ............................. $ (34,441)Reported
-------------
Accrued income taxes ........................ (332,786)
Accrued interest ............................ 177,156
Accrued Salaries/Wages ...................... 83,639
Accrued Fuel ................................ 37,550
-------------
(34,441)Detail
-------------
- Difference
27. OTHER (ATTACH LIST) ............................. $ 92,648,683 Reported
-------------
Deferred Taxes .............................. 87,246,212
Accrued Taxes payable ....................... (18,954,646)
46
<PAGE>
CASE NAME: KITTY HAWK INTERNATIONAL, INC.
CASE NUMBER: 00-42144
DETAILS OF OTHER ITEMS
Aircraft Maintenance Reserves ............... 11,514,163
Accrued Fuel expenses ....................... 5,403,028
Prepaid Fuel ................................ (5,661,963)
Accrued Salaries/Vacation/Employee Benefits.. 4,075,349
A/P Other/Accrued/Unrecorded ................ 3,691,066
Purchase reserves ........................... 1,762,176
Accrued Landing fees/parking/cargo fees ..... 1,644,307
Various accrued taxes ....................... 1,313,200
Other Misc accruals ......................... 615,791
-------------
92,648,683 Detail
-------------
- Difference
ACCRUAL BASIS-2
13. OTHER (ATTACH LIST) ............................ $ 59,617 Reported
-------------
Landing and parking ......................... (134,828)
Engine costs ................................ 17,410
Fuel ........................................ 37,550
Ops Insurance ............................... 49,868
Insurance ................................... (164,710)
Rotables/Repair ............................. 245,903
Shipping .................................... 3,715
Expendible Supplies ......................... 211
Line Maint - B Check ........................ 3,000
Radio Charges ............................... 1,497
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59,616 Detail
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1 Difference
16. NON-OPERATING INCOME (ATT. LIST) ................ (500)Reported
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Gain on sale of asset ....................... (500)Detail
-------------
- Difference
ACCRUAL BASIS-3
8. OTHER (ATTACH LIST) .............................. (1,014,030)Reported
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47
<PAGE>
CASE NAME: KITTY HAWK INTERNATIONAL, INC.
CASE NUMBER: 00-42144
DETAILS OF OTHER ITEMS
Transfer to Inc - all money sweeps .......... (1,014,030)Detail
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to KH Inc. Case #400-42141 ............... - Difference
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48
