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: OCTOBER 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 Chief Financial Officer
--------------------------------------- ------------------------
ORIGINAL SIGNATURE OF RESPONSIBLE PARTY TITLE
Drew Keith 11/20/00
--------------------------------------- ------------------------
PRINTED NAME OF RESPONSIBLE PARTY DATE
PREPARER:
/s/ JESSICA L. WILSON Chief Accounting Officer
--------------------------------------- ------------------------
ORIGINAL SIGNATURE OF PREPARER TITLE
Jessica L. Wilson 11/20/00
--------------------------------------- ------------------------
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 October 2000
--------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
1. UNRESTRICTED CASH $13,401,586 $26,505,479 $0 $0
--------------------------------------------------------------------------------------------------------------------------------
2. RESTRICTED CASH $0 $0 $0
--------------------------------------------------------------------------------------------------------------------------------
3. TOTAL CASH $13,401,586 $26,505,479 $0 $0
--------------------------------------------------------------------------------------------------------------------------------
4. ACCOUNTS RECEIVABLE (NET) ($12,018,737) $0 $0
--------------------------------------------------------------------------------------------------------------------------------
5. INVENTORY ($1,016,667) $0 $0
--------------------------------------------------------------------------------------------------------------------------------
6. NOTES RECEIVABLE $15,000 $15,000 $0 $0
--------------------------------------------------------------------------------------------------------------------------------
7. PREPAID EXPENSES $251,751 $0 $0
--------------------------------------------------------------------------------------------------------------------------------
8. OTHER (ATTACH LIST) $422,186,692 $374,571,580 $0 $0
--------------------------------------------------------------------------------------------------------------------------------
9. TOTAL CURRENT ASSETS $435,603,278 $388,308,406 $0 $0
--------------------------------------------------------------------------------------------------------------------------------
10. PROPERTY, PLANT & EQUIPMENT $2,425,652 $2,865,674 $0 $0
--------------------------------------------------------------------------------------------------------------------------------
11. LESS: ACCUMULATED
DEPRECIATION/DEPLETION $728,655 $0 $0
--------------------------------------------------------------------------------------------------------------------------------
12. NET PROPERTY, PLANT &
EQUIPMENT $2,425,652 $2,137,019 $0 $0
--------------------------------------------------------------------------------------------------------------------------------
13. DUE FROM INSIDERS $62,465 $219,367 $0 $0
--------------------------------------------------------------------------------------------------------------------------------
14. OTHER ASSETS - NET OF
AMORTIZATION (ATTACH LIST) $10,967,208 $10,323,664 $0 $0
--------------------------------------------------------------------------------------------------------------------------------
15. OTHER (ATTACH LIST) $138,370,015 $138,370,015 $0 $0
--------------------------------------------------------------------------------------------------------------------------------
16. TOTAL ASSETS $587,428,618 $539,358,471 $0 $0
--------------------------------------------------------------------------------------------------------------------------------
POSTPETITION LIABILITIES
--------------------------------------------------------------------------------------------------------------------------------
17. ACCOUNTS PAYABLE $4,327,276 $0 $0
--------------------------------------------------------------------------------------------------------------------------------
18. TAXES PAYABLE $0 $0 $0
--------------------------------------------------------------------------------------------------------------------------------
19. NOTES PAYABLE $0 $0 $0
--------------------------------------------------------------------------------------------------------------------------------
20. PROFESSIONAL FEES $750,202 $0 $0
--------------------------------------------------------------------------------------------------------------------------------
21. SECURED DEBT $0 $0 $0
--------------------------------------------------------------------------------------------------------------------------------
22. OTHER (ATTACH LIST) $549,498 $0 $0
--------------------------------------------------------------------------------------------------------------------------------
23. TOTAL POSTPETITION
LIABILITIES $5,626,976 $0 $0
--------------------------------------------------------------------------------------------------------------------------------
PREPETITION LIABILITIES
--------------------------------------------------------------------------------------------------------------------------------
24. SECURED DEBT $466,119,468 $397,279,348 $0 $0
--------------------------------------------------------------------------------------------------------------------------------
25. PRIORITY DEBT $29,661 $0 $0 $0
--------------------------------------------------------------------------------------------------------------------------------
26. UNSECURED DEBT $22,580,547 $2,232,269 $0 $0
--------------------------------------------------------------------------------------------------------------------------------
27. OTHER (ATTACH LIST) $0 $35,319,820 $0 $0
--------------------------------------------------------------------------------------------------------------------------------
28. TOTAL PREPETITION LIABILITIES $488,729,676 $434,831,437 $0 $0
--------------------------------------------------------------------------------------------------------------------------------
29. TOTAL LIABILITIES $488,729,676 $440,458,413 $0 $0
--------------------------------------------------------------------------------------------------------------------------------
EQUITY
--------------------------------------------------------------------------------------------------------------------------------
30. PREPETITION OWNERS' EQUITY $98,899,692 $0 $0
--------------------------------------------------------------------------------------------------------------------------------
31. POSTPETITION CUMULATIVE
PROFIT OR (LOSS) $366 $0 $0
--------------------------------------------------------------------------------------------------------------------------------
32. DIRECT CHARGES TO EQUITY
(ATTACH EXPLANATION)
--------------------------------------------------------------------------------------------------------------------------------
33. TOTAL EQUITY $0 $98,900,058 $0 $0
--------------------------------------------------------------------------------------------------------------------------------
34. TOTAL LIABILITIES &
OWNERS' EQUITY $488,729,676 $539,358,471 $0 $0
--------------------------------------------------------------------------------------------------------------------------------
</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 October 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 $74,167 $0 $0 $74,167
---------------------------------------------------------------------------------------------------------------------------------
10. SELLING & MARKETING $0 $0 $0 $0
---------------------------------------------------------------------------------------------------------------------------------
11. GENERAL & ADMINISTRATIVE ($1,487,880) $0 $0 ($1,487,880)
---------------------------------------------------------------------------------------------------------------------------------
12. RENT & LEASE $23,392 $0 $0 $23,392
---------------------------------------------------------------------------------------------------------------------------------
13. OTHER (ATTACH LIST) $0 $0 $0 $0
---------------------------------------------------------------------------------------------------------------------------------
14. TOTAL OPERATING EXPENSES ($1,390,321) $0 $0 ($1,390,321)
---------------------------------------------------------------------------------------------------------------------------------
15. INCOME BEFORE NON-OPERATING
INCOME & EXPENSE $1,390,321 $0 $0 $1,390,321
---------------------------------------------------------------------------------------------------------------------------------
OTHER INCOME & EXPENSES
---------------------------------------------------------------------------------------------------------------------------------
16. NON-OPERATING INCOME (ATT. LIST) ($210,756) $0 $0 ($210,756)
---------------------------------------------------------------------------------------------------------------------------------
17. NON-OPERATING EXPENSE (ATT. LIST) $0 $0 $0 $0
---------------------------------------------------------------------------------------------------------------------------------
18. INTEREST EXPENSE $118,550 $0 $0 $118,550
---------------------------------------------------------------------------------------------------------------------------------
19. DEPRECIATION/DEPLETION $48,335 $0 $0 $48,335
---------------------------------------------------------------------------------------------------------------------------------
20. AMORTIZATION $91,567 $0 $0 $91,567
---------------------------------------------------------------------------------------------------------------------------------
21. OTHER (ATTACH LIST) $0 $0 $0 $0
---------------------------------------------------------------------------------------------------------------------------------
22. NET OTHER INCOME & EXPENSES $47,696 $0 $0 $47,696
---------------------------------------------------------------------------------------------------------------------------------
REORGANIZATION EXPENSES
---------------------------------------------------------------------------------------------------------------------------------
23. PROFESSIONAL FEES $1,339,183 $0 $0 $1,339,183
---------------------------------------------------------------------------------------------------------------------------------
24. U.S. TRUSTEE FEES $0 $0 $0 $0
---------------------------------------------------------------------------------------------------------------------------------
25. OTHER (ATTACH LIST) $0 $0 $0 $0
---------------------------------------------------------------------------------------------------------------------------------
26. TOTAL REORGANIZATION EXPENSES $1,339,183 $0 $0 $1,339,183
---------------------------------------------------------------------------------------------------------------------------------
27. INCOME TAX $0 $0 $0 $0
---------------------------------------------------------------------------------------------------------------------------------
28. NET PROFIT (LOSS) $3,442 $0 $0 $3,442
---------------------------------------------------------------------------------------------------------------------------------
</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 QUARTER
CASH RECEIPTS AND -----------------------------------------------------
DISBURSEMENTS October 2000 TOTAL
---------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
1. CASH - BEGINNING OF MONTH $47,704,367 $47,704,367
---------------------------------------------------------------------------------------------------------------------------------
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) $40,609,783 $0 $0 $40,609,783
---------------------------------------------------------------------------------------------------------------------------------
9. TOTAL NON-OPERATING RECEIPTS $40,609,783 $0 $0 $40,609,783
---------------------------------------------------------------------------------------------------------------------------------
10. TOTAL RECEIPTS $40,609,783 $0 $0 $40,609,783
---------------------------------------------------------------------------------------------------------------------------------
11. TOTAL CASH AVAILABLE $88,314,150 $0 $0 $88,314,150
---------------------------------------------------------------------------------------------------------------------------------
OPERATING DISBURSEMENTS
---------------------------------------------------------------------------------------------------------------------------------
12. NET PAYROLL $3,689,834 $0 $0 $3,689,834
---------------------------------------------------------------------------------------------------------------------------------
13. PAYROLL TAXES PAID $1,489,055 $0 $0 $1,489,055
---------------------------------------------------------------------------------------------------------------------------------
14. SALES, USE & OTHER TAXES PAID $52,471 $0 $0 $52,471
---------------------------------------------------------------------------------------------------------------------------------
15. SECURED/RENTAL/LEASES $28,847,318 $0 $0 $28,847,318
---------------------------------------------------------------------------------------------------------------------------------
16. UTILITIES $310,409 $0 $0 $310,409
---------------------------------------------------------------------------------------------------------------------------------
17. INSURANCE $1,042,709 $0 $0 $1,042,709
---------------------------------------------------------------------------------------------------------------------------------
18. INVENTORY PURCHASES $0 $0 $0 $0
---------------------------------------------------------------------------------------------------------------------------------
19. VEHICLE EXPENSES $0 $0 $0 $0
---------------------------------------------------------------------------------------------------------------------------------
20. TRAVEL $1,258,052 $0 $0 $1,258,052
---------------------------------------------------------------------------------------------------------------------------------
21. ENTERTAINMENT $0 $0 $0 $0
---------------------------------------------------------------------------------------------------------------------------------
22. REPAIRS & MAINTENANCE $5,630,183 $0 $0 $5,630,183
---------------------------------------------------------------------------------------------------------------------------------
23. SUPPLIES $65,342 $0 $0 $65,342
---------------------------------------------------------------------------------------------------------------------------------
24. ADVERTISING $5,568 $0 $0 $5,568
---------------------------------------------------------------------------------------------------------------------------------
25. OTHER (ATTACH LIST) $18,009,360 $0 $0 $18,009,360
---------------------------------------------------------------------------------------------------------------------------------
26. TOTAL OPERATING DISBURSEMENTS $60,400,301 $0 $0 $60,400,301
---------------------------------------------------------------------------------------------------------------------------------
REORGANIZATION EXPENSES
---------------------------------------------------------------------------------------------------------------------------------
27. PROFESSIONAL FEES $1,392,870 $0 $0 $1,392,870
---------------------------------------------------------------------------------------------------------------------------------
28. U.S. TRUSTEE FEES $15,500 $0 $0 $15,500
---------------------------------------------------------------------------------------------------------------------------------
29. OTHER (ATTACH LIST) $0 $0 $0 $0
---------------------------------------------------------------------------------------------------------------------------------
30. TOTAL REORGANIZATION EXPENSES $1,408,370 $0 $0 $1,408,370
---------------------------------------------------------------------------------------------------------------------------------
31. TOTAL DISBURSEMENTS $61,808,671 $0 $0 $61,808,671
---------------------------------------------------------------------------------------------------------------------------------
32. NET CASH FLOW ($21,198,888) $0 $0 ($21,198,888)
---------------------------------------------------------------------------------------------------------------------------------
33. CASH - END OF MONTH $26,505,479 $0 $0 $26,505,479
---------------------------------------------------------------------------------------------------------------------------------
</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 October 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 $12,018,737 $0 $0
---------------------------------------------------------------------------------------------------------------------
7. ACCOUNTS RECEIVABLE (NET) $0 ($12,018,737) $0 $0
---------------------------------------------------------------------------------------------------------------------
<CAPTION>
AGING OF POSTPETITION TAXES AND PAYABLES MONTH: October 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 $2,716,818 $1,594,060 $417,018 ($400,620) $4,327,276
---------------------------------------------------------------------------------------------------------------------
<CAPTION>
STATUS OF POSTPETITION TAXES MONTH: October 2000
---------------------------------------------------------------------------------------------------------------------
BEGINNING AMOUNT ENDING
TAX WITHHELD AND/ AMOUNT TAX
FEDERAL LIABILITY* 0R ACCRUED PAID LIABILITY
---------------------------------------------------------------------------------------------------------------------
1. WITHHOLDING** $0 $109,984 $109,984 $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 $109,984 $109,984 $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 $109,984 $109,984 $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: October 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 $763,748 $50,000 $26,440 $941,475
-----------------------------------------------------------------------------------------------------------------------------------
2. ADD: TOTAL DEPOSITS NOT CREDITED $0 $0 $0 $0
-----------------------------------------------------------------------------------------------------------------------------------
3. SUBTRACT: OUTSTANDING CHECKS $3,298,615 $0 $0 $3,358,616
-----------------------------------------------------------------------------------------------------------------------------------
4. OTHER RECONCILING ITEMS ($162,213) $0 ($26,566) ($188,779)
-----------------------------------------------------------------------------------------------------------------------------------
5. MONTH END BALANCE PER BOOKS ($2,697,080) $50,000 ($126) ($2,647,206)
-----------------------------------------------------------------------------------------------------------------------------------
6. NUMBER OF LAST CHECK WRITTEN No checks 18043 No checks
-----------------------------------------------------------------------------------------------------------------------------------
<CAPTION>
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 10/31/00 Overnight Sweep $28,907,835 $28,907,835
-----------------------------------------------------------------------------------------------------------------------------------
9. N/A
-----------------------------------------------------------------------------------------------------------------------------------
10. N/A
-----------------------------------------------------------------------------------------------------------------------------------
11. TOTAL INVESTMENTS $29,107,835 $29,110,399
-----------------------------------------------------------------------------------------------------------------------------------
CASH
-----------------------------------------------------------------------------------------------------------------------------------
12. CURRENCY ON HAND $1,000
-----------------------------------------------------------------------------------------------------------------------------------
13. TOTAL CASH - END OF MONTH $26,505,479
-----------------------------------------------------------------------------------------------------------------------------------
</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: October 2000
-----------------------------------------------------------------------------------------------------------------------------------
BANK RECONCILIATIONS
Account #4 Account #5 Account #6
-----------------------------------------------------------------------------------------------------------------------------------
A. BANK: Bank One Bank One Bank One
---------------------------------------------------------------------------------------------------------------
B. ACCOUNT NUMBER: 1570695922 100129949/931995845 1586268961 TOTAL
---------------------------------------------------------------------------------------------------------------
C. PURPOSE (TYPE): Payroll Health Insurance Flex Spending
-----------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
1. BALANCE PER BANK STATEMENT $0 $60,001 $41,286 $101,287
-----------------------------------------------------------------------------------------------------------------------------------
2. ADD: TOTAL DEPOSITS NOT CREDITED $0 $0 $0 $0
-----------------------------------------------------------------------------------------------------------------------------------
3. SUBTRACT: OUTSTANDING CHECKS $0 $60,001 $0 $60,001
-----------------------------------------------------------------------------------------------------------------------------------
4. OTHER RECONCILING ITEMS ($162,213) $0 $0 $0
-----------------------------------------------------------------------------------------------------------------------------------
5. MONTH END BALANCE PER BOOKS $0 $0 $41,286 $41,286
-----------------------------------------------------------------------------------------------------------------------------------
6. NUMBER OF LAST CHECK WRITTEN 65930 140617 1100
-----------------------------------------------------------------------------------------------------------------------------------
<CAPTION>
INVESTMENT ACCOUNTS
-----------------------------------------------------------------------------------------------------------------------------------
DATE OF TYPE OF PURCHASE CURRENT
BANK, ACCOUNT NAME & NUMBER PURCHASE INSTRUMENT PRICE VALUE
-----------------------------------------------------------------------------------------------------------------------------------
7.
-----------------------------------------------------------------------------------------------------------------------------------
8.
-----------------------------------------------------------------------------------------------------------------------------------
9.
-----------------------------------------------------------------------------------------------------------------------------------
10.
-----------------------------------------------------------------------------------------------------------------------------------
11. TOTAL INVESTMENTS
-----------------------------------------------------------------------------------------------------------------------------------
CASH
-----------------------------------------------------------------------------------------------------------------------------------
12. CURRENCY ON HAND $0
-----------------------------------------------------------------------------------------------------------------------------------
13. TOTAL CASH - END OF MONTH $41,286
-----------------------------------------------------------------------------------------------------------------------------------
</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: October 2000
-----------------------------------------------------------------------------------------------------------------------------------
BANK RECONCILIATIONS
Account #7
-----------------------------------------------------------------------------------------------------------------------------------
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 $0 $0
-----------------------------------------------------------------------------------------------------------------------------------
6. NUMBER OF LAST CHECK WRITTEN 2109
-----------------------------------------------------------------------------------------------------------------------------------
<CAPTION>
INVESTMENT ACCOUNTS
-----------------------------------------------------------------------------------------------------------------------------------
DATE OF TYPE OF PURCHASE CURRENT
BANK, ACCOUNT NAME & NUMBER PURCHASE INSTRUMENT PRICE VALUE
-----------------------------------------------------------------------------------------------------------------------------------
7.
-----------------------------------------------------------------------------------------------------------------------------------
8.
-----------------------------------------------------------------------------------------------------------------------------------
9.
-----------------------------------------------------------------------------------------------------------------------------------
10.
-----------------------------------------------------------------------------------------------------------------------------------
11. TOTAL INVESTMENTS
-----------------------------------------------------------------------------------------------------------------------------------
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
---------------------------
MONTH: October 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.
<TABLE>
<CAPTION>
----------------------------------------------------------------------------------------------
INSIDERS
----------------------------------------------------------------------------------------------
TYPE OF AMOUNT TOTAL PAID
NAME PAYMENT PAID TO DATE
----------------------------------------------------------------------------------------------
<S> <C> <C> <C>
1. Mike Clark Salary $7,917 $42,501
----------------------------------------------------------------------------------------------
2. Jim Craig Salary $16,667 $100,002
----------------------------------------------------------------------------------------------
3. Janie Garrard Salary $0 $2,625
----------------------------------------------------------------------------------------------
4. Drew Keith Salary $16,250 $103,962
----------------------------------------------------------------------------------------------
5 Lena Baker Salary $0 $7,500
----------------------------------------------------------------------------------------------
6 Jim Reeves Salary $33,333 $199,998
----------------------------------------------------------------------------------------------
7 John Turnipseed Salary $0 $41,668
----------------------------------------------------------------------------------------------
8 TOTAL PAYMENTS
TO INSIDERS $74,167 $498,256
----------------------------------------------------------------------------------------------
<CAPTION>
-----------------------------------------------------------------------------------------------------------------------------
PROFESSIONALS
-----------------------------------------------------------------------------------------------------------------------------
DATE OF COURT TOTAL
ORDER AUTHORIZING AMOUNT AMOUNT TOTAL PAID INCURRED
NAME PAYMENT APPROVED PAID TO DATE & UNPAID *
-----------------------------------------------------------------------------------------------------------------------------
1. Lain Faulkner $75,767 $298,074 $71,177
-----------------------------------------------------------------------------------------------------------------------------
2. Haynes and Boone $417,906 $1,285,551 $537,631
-----------------------------------------------------------------------------------------------------------------------------
3. The Seabury Group $150,000 $900,000 $0
-----------------------------------------------------------------------------------------------------------------------------
4. Forshey & Prostock $66,703 $178,405 $41,738
-----------------------------------------------------------------------------------------------------------------------------
5 Price Waterhouse Coopers $109,699 $294,071 $0
-----------------------------------------------------------------------------------------------------------------------------
6 Jay Alix and Associates $153,473 $239,718 $51,255
-----------------------------------------------------------------------------------------------------------------------------
7 Andrews & Kurth $173,921 $560,753 $0
-----------------------------------------------------------------------------------------------------------------------------
8 Jenkins & Gilchrist $1,479 $47,474 $0
-----------------------------------------------------------------------------------------------------------------------------
9 Ford and Harrison $9,670 $103,765 $23,401
-----------------------------------------------------------------------------------------------------------------------------
10. Grant Thornton $65,000 $115,000 $25,000
-----------------------------------------------------------------------------------------------------------------------------
11. TOTAL PAYMENTS
TO PROFESSIONALS $0 $1,223,618 $4,022,811 $750,202
-----------------------------------------------------------------------------------------------------------------------------
* INCLUDE ALL FEES INCURRED, BOTH APPROVED AND UNAPPROVED
----------------------------------------------------------------------------------------------------------------
POSTPETITION STATUS OF SECURED NOTES, LEASES PAYABLE AND ADEQUATE
PROTECTION PAYMENTS
----------------------------------------------------------------------------------------------------------------
<CAPTION>
----------------------------------------------------------------------------------------------------------------
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: October 2000
<TABLE>
<CAPTION>
QUESTIONNAIRE
-----------------------------------------------------------------------------------------------------------
YES NO
-----------------------------------------------------------------------------------------------------------
<S> <C> <C>
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.
Item #4 - the Company has paid down approximately $19 million on its revolving credit facility in accordance
with various court orders. Cash used in the payments were a result of asset sales (aircraft and inventory)
and internally generated cash.
-----------------------------------------------------------------------------------------------------------
-----------------------------------------------------------------------------------------------------------
<CAPTION>
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.
-----------------------------------------------------------------------------------------------------------
-----------------------------------------------------------------------------------------------------------
<CAPTION>
----------------------------------------------------------------------------------------------------------------------
INSTALLMENT PAYMENTS
----------------------------------------------------------------------------------------------------------------------
TYPE OF PAYMENT AMOUNT
POLICY CARRIER PERIOD COVERED & FREQUENCY
----------------------------------------------------------------------------------------------------------------------
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 10/1/2000 - 9/30/2001 100,266 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
<TABLE>
<CAPTION>
------------------------------------------------------------------------------------------------------------
ACCRUAL BASIS LINE
FORM NUMBER NUMBER FOOTNOTE / EXPLANATION
------------------------------------------------------------------------------------------------------------
<S> <C> <C>
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.
------------------------------------------------------------------------------------------------------------
</TABLE>
<PAGE>
CASE NAME: KITTY HAWK, INC.
CASE NUMBER: 400-42141
DETAILS OF OTHER ITEMS
ACCRUAL BASIS-1 October 2000
8. OTHER (ATTACH LIST) $ 374,571,580 Reported
------------------
Intercompany Receivables 374,682,312
Escrow JRC 403,000
A/R Other 459,739
Misc A/R (8,909)
A/R Employees 853
A/R 401(k) Loan 53
A/R Payroll advance 252
A/R Travel Advance 321
Deferred Taxes (1,682,277)
Deposits - Other 300,236
Deposits - Retainers 416,000
------------------
374,571,580 Detail
------------------
- Difference
14. OTHER ASSETS - NET OF
AMORTIZATION (ATTACH LIST) 10,323,664 Reported
------------------
Loan organizaiton costs 1,403,044
Bond offering costs 7,151,860
Non-compete - Beti Ward 320,840
Goodwill - KH Cargo 1,447,920
------------------
10,323,664 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) $ 549,498 Reported
------------------
Accrued expenses 23,347
Accrued interest 462,280
Accrued health savings 84,517
A/P Aging reconciling item (25,852)
Accrued 401(k) 5,206
Accrued Salaries/Wages -
------------------
549,498 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
------------------
- Differnece
<PAGE>
CASE NAME: KITTY HAWK, INC.
CASE NUMBER: 400-42141
DETAILS OF OTHER ITEMS
ACCRUAL BASIS-2
16. NON-OPERATING INCOME (ATT. LIST) (210,756)Reported
------------------
Interest Income (210,686)
Other Misc Income (70)
------------------
(210,756)Detail
- Difference
ACCRUAL BASIS-3
8. OTHER (ATTACH LIST) 40,609,783 Reported
------------------
Transfers from Charters 2,485,265
Transfers from Cargo 12,727,769
Transfers from Aircargo 14,269,159
Transfers from International 8,500
Transfers from Aircraft Leasing 2,950,000
Transfer to COD Account (3,964)
Transfers to LSI (3,483)
Cash deposits - non-lockbox 2,797,800
Interest income 209,871
Returned Wire 513,044
Auction proceeds from KH International 4,656,160
NSF Checks (338)
------------------
40,609,783 Detail
------------------
- Difference
------------------
25. OTHER (ATTACH LIST) 18,009,360 Reported
------------------
Inc. 401(k) 241,181
Employee Expenses 93,947
Bank charges 12,896
Interest expense 916
Fuel 8,736,154
Ground Handling 2,199,079
Shipping 223,567
Ondemand Charter costs 92,972
135 Airline costs 83,259
Building Rent and expenses 832,028
Contract Labor 629,450
Trucking 462,558
Customs/Parking/Landing 876,006
Transfers 1,103
Security 34,378
Simulator/Communication/Other Training 245,361
Voided checks and corrections (192,538)
Board of Direcetors expenses 329
Shutdown costs 91,042
Commissions 203,905
Deicing 26,943
Deposits 947,010
Subcharter Aircraft 2,167,814
------------------
18,009,360 Detail
- Difference
