<PAGE>
EXHIBIT 99.1
Monthly Operating Report
ACCRUAL Basis
---------------------------------------------
CASE NAME: Physicians Resource Group, Inc.
CASE NUMBER: 00-30748-RCM
JUDGE: Robert C. McGuire
--------------------------------------------
UNITED STATES BANKRUPTCY COURT
NORTHERN DISTRICT OF TEXAS
DALLAS DIVISION
MONTH ENDING: May 31, 2000
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 THESE DOCUMENTS ARE TRUE, CORRECT
AND COMPLETE. DECLARATION OF THE PREPARER IS BASED ON ALL INFORMATION
OF WHICH PREPARER HAS KNOWLEDGE.
RESPONSIBLE PARTY:
Chief Restructuring Officer
---------------------------------------- -------------------------------------
ORIGINAL SIGNATURE OF RESPONSIBLE PARTY TITLE
Michael W. Yeary 22-Jun-00
---------------------------------------- -------------------------------------
PRINTED NAME OF RESPONSIBLE PARTY DATE
PREPARER:
Controller - Secretary
---------------------------------------- -------------------------------------
ORIGINAL SIGNATURE OF PREPARER TITLE
Karen G. Nicolaou 22-Jun-00
---------------------------------------- -------------------------------------
PRINTED NAME OF RESPONSIBLE PARTY DATE
PAGE 1 OF 14 PAGES
<PAGE>
<TABLE>
<CAPTION>
==================================================================================================================================
Monthly Operating Report
-------------------------------------------
CASE NAME: Physicians Resource Group, Inc. ACCRUAL BASIS-1
CASE NUMBER: 00-30748-RCM
-------------------------------------------
-------------------------------------------
COMPARATIVE BALANCE SHEET
UNAUDITED ******* AMOUNTS ARE UNAUDITED *******
-------------------------------------------------------------------------------------------------------------------------
SCHEDULE APRIL
ASSETS AMOUNT(1)* JANUARY FEBRUARY MARCH RESTATED May
-------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
1 UNRESTRICTED CASH 46,847,552 - 48,483,735 48,254,575 (2) 47,772,167 47,279,916
-------------------------------------------------------------------------------------------------------------------------
2 RESTRICTED CASH 899,566 - 905,566 832,117 840,060 843,161
-------------------------------------------------------------------------------------------------------------------------
3 TOTAL CASH 47,747,118 - 49,389,301 49,086,692 48,612,227 48,123,077
-------------------------------------------------------------------------------------------------------------------------
4 ACCOUNTS RECEIVABLE (NET) 2,963,426 - 10,561 6,991 - 5,481,023 (2)
-------------------------------------------------------------------------------------------------------------------------
5 INVENTORY - - - - - -
-------------------------------------------------------------------------------------------------------------------------
6 NOTES REC (SEE SCHEDULE) 529,848 - 529,878 519,948 519,133 516,375
-------------------------------------------------------------------------------------------------------------------------
7 PREPAID EXPENSES 2,643,776 - 2,394,106 2,227,692 2,052,927 1,892,640
-------------------------------------------------------------------------------------------------------------------------
8 OTHER (ATTACH LIST) - - 459,533 520,581 528,186 547,873
-------------------------------------------------------------------------------------------------------------------------
9 TOTAL CURRENT ASSETS 53,884,168 - 52,783,378 52,361,903 51,712,473 56,560,988
-------------------------------------------------------------------------------------------------------------------------
10 PROPERTY, PLANT & EQUIPMENT 201,837 - 4,525,708 4,485,554 4,485,554 4,240,275
-------------------------------------------------------------------------------------------------------------------------
11 LESS: ACCUM DEPRECATION - - (3,281,910) (3,322,094) (3,379,131) (3,313,918)
-------------------------------------------------------------------------------------------------------------------------
12 NET PROPERTY, PLANT & EQUIP 201,837 - 1,243,798 1,163,461 1,106,423 926,357
-------------------------------------------------------------------------------------------------------------------------
13 DUE FROM INSIDERS - - - - - -
-------------------------------------------------------------------------------------------------------------------------
14 OTHER ASSETS NET (ATTACH
LIST) 80,910,621 - 76,928,562 76,936,716 76,936,716 76,936,716
-------------------------------------------------------------------------------------------------------------------------
15 OTHER (ATTACH LIST) 40,390 - 40,390 20,072 20,072 21,572
-------------------------------------------------------------------------------------------------------------------------
16 TOTAL ASSETS 135,037,016 - 130,996,128 130,482,152 129,775,684 134,445,633
-------------------------------------------------------------------------------------------------------------------------
POSTPETITION LIABILITIES
-------------------------------------------------------------------------------------------------------------------------
17 ACCOUNTS PAYABLE - 3,487 57,986 348,108 349,955
-------------------------------------------------------------------------------------------------------------------------
18 TAXES PAYABLE - - -
-------------------------------------------------------------------------------------------------------------------------
19 NOTES PAYABLE - - -
-------------------------------------------------------------------------------------------------------------------------
20 PROFESSIONAL FEES - 435,600 815,800 1,044,868 1,194,868
-------------------------------------------------------------------------------------------------------------------------
21 SECURED DEBT - - -
-------------------------------------------------------------------------------------------------------------------------
22 OTHER (ATTACH LIST) - 131,847 124,705 201,261 131,644
-------------------------------------------------------------------------------------------------------------------------
23 TOTAL POSTPETITION
LIABILITIES - 570,934 998,491 1,594,237 1,676,468
-------------------------------------------------------------------------------------------------------------------------
PREPETITION LIABILITIES
-------------------------------------------------------------------------------------------------------------------------
24 SECURED DEBT - - - -
-------------------------------------------------------------------------------------------------------------------------
25 PRIORITY DEBT 569,603 - 569,603 569,603 566,693 566,693
-------------------------------------------------------------------------------------------------------------------------
26 UNSECURED DEBT 135,307,165 - 140,982,547 141,098,226 140,927,149 140,860,189
-------------------------------------------------------------------------------------------------------------------------
27 OTHER (ATTACH LIST) - - 442,726 442,726 444,697 444,697
-------------------------------------------------------------------------------------------------------------------------
28 TOTAL PREPETITION
LIABILITIES 135,876,768 - 141,994,876 142,110,554 141,938,540 141,871,580
-------------------------------------------------------------------------------------------------------------------------
29 TOTAL LIABILITIES 135,876,768 - 142,565,810 143,109,045 143,520,015 143,548,047
-------------------------------------------------------------------------------------------------------------------------
EQUITY
-------------------------------------------------------------------------------------------------------------------------
30 PREPETITION OWNERS EQUITY (839,752) - (10,944,475) (11,050,372) (10,948,771) (10,947,989)
-------------------------------------------------------------------------------------------------------------------------
31 POSTPETITION CUMULATIVE
PROFIT OR (LOSS) - (625,207) (1,576,520) (2,795,560) 1,845,575
-------------------------------------------------------------------------------------------------------------------------
32 DIRECT CHARGES TO EQUITY
(ATTACH EXPLANATION) - - - - -
-------------------------------------------------------------------------------------------------------------------------
33 TOTAL EQUITY (839,752) - (11,569,682) (12,626,893) (13,744,331) (9,102,414)
-------------------------------------------------------------------------------------------------------------------------
34 TOTAL LIABILITIES &
OWNERS EQUITY 135,037,016 - 130,996,128 130,482,152 129,775,684 134,445,633
-------------------------------------------------------------------------------------------------------------------------
==================================================================================================================================
</TABLE>
* The balances reported in the "Schedule Amount" column represent the
"current market value of the debtors interest in property, without
deducting any secured claim or exemption." The balances in the monthly
columns represent Physician Resources Group, Inc.'s historical cost
basis in the asset, net of any allowance for the impairment of the
asset.
(1) Amounts included under the "Scheduled Amount" caption have been updated
to reflect changes in reported amounts subsequent to filing the
debtor's Statement of Financial Affairs. PRG has filed amendments to
the original "Statement of Financial Affairs" and will continue to do
so as an when appropriate.
(2) Includes an accrual for Taboada settlement. Funds were deposited into
Andrews & Kurth's escrow account on May 2, 2000 and were transferred to
PRG on June 21, 2000.
PAGE 2 OF 14 PAGES
<PAGE>
<TABLE>
<CAPTION>
----------------------------------------------- DETAIL SCHEDULE
CASE NAME: PHYSICIANS RESOURCE GROUP, INC. ACCRUAL BASIS 1
CASE NUMBER: 00-30748-RCM MONTH: MAY 2000
-------------------
-----------------------------------------------
**** AMOUNTS ARE UNAUDITED ****
ITEM SCHEDULE
NO DESCRIPTION AMOUNT JANUARY FEBRUARY MARCH APRIL MAY
------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C>
6 NOTES RECEIVABLE
-----------------------------
E. MOORE 2,225,000 2,225,000 2,225,000 2,225,000 2,225,000
HALEY 77,215 77,215 77,215 77,215 77,215
WYLL 76,227 76,227 76,227 76,227 76,227
WESTFIELD 250,000 250,000 247,186 241,525 235,798
FRITCH (Note 1) 300,000 300,000 292,819 292,819 292,819
SHAFRON 60,000 60,000 60,000 60,000 60,000
WILEY 150,000 150,000 150,000 150,000 150,000
DOCTORS VISION CENTER 146,314 146,314 146,314 146,314 146,314
---------- --------- --------- ----------- ---------
TOTAL NOTES RECEIVABLE 3,284,756 3,284,756 3,274,761 3,269,100 3,263,374
ESTIMATED RESERVE AMOUNT (2,754,878) (2,754,878) (2,754,813) (2,749,967) (2,746,998)
---------- --------- --------- ----------- ---------
ESTIMATED NET PRINCIPAL BALANCE 529,878 529,878 519,948 519,133 516,376
========== ========= ========= =========== =========
Note 1: Payments for April & May 2000 were recorded in June 2000.
7 PREPAID EXPENSES
-----------------------------
INSURANCE PREMIUMS 1,118,669 1,042,041 983,619 905,708 874,310
RESOURCES CONNECTION - RETAINER/FEES 92,574 30,046 29,006 29,006 29,006
GEORGE, DONALDSON & FORD - RETAINER 35,000 35,000 35,000 35,000 35,000
ANDREWS & KURTH - RETAINER 283,863 283,863 283,863 283,863 283,863
ARENT FOX KINTER PLOTKIN & KAHN - RETAINER 14,926 14,926 18,373 18,373 18,373
HORNTHAL PILEY ELLIS & MALLAND - RETAINER 3,500 3,500 3,500 3,500 3,500
JAMES E. BOREN - RETAINER 8,709 8,709 8,709 18,709 18,709
LEE & McINNISH - RETAINER 709 709 709 709 709
MUNSCH HARDT KOPF & HARR - RETAINER 10,000 10,000 10,000 10,000 10,000
NEAL & HARWELL -RETAINER 3,611 3,611 3,611 3,611 3,611
WOLIN, RIDLEY & MILLER - RETAINER 40,875 40,875 - -
FARRIS MATTHEWS BRANAN BOBANGO -RETAINER 7,218 7,218 7,218 7,073 7,073
SMYSER, KAPLAN & VESELKA -RETAINER 50,000 50,000 50,000 49,888 49,888
HOULIHAN & LOKEY - RETAINER 35,000 35,000 35,000 35,000 35,000
JACKSON & WALKER - RETAINER 250,000 250,000 250,000 50,000 250,000
JONES DAY REAVIS & POGUE -RETAINER 75,000 75,000 75,000 75,000 -
MANN FRANKFORT -RETAINER 80,000 80,000 80,000 68,400 68,400
LAURA JAMES -RETAINER 20,000 20,000 20,000 20,000 20,000
DICKSON FLATO -RETAINER 20,000 20,000 20,000 20,000 20,000
GRUBB CONSULTING -RETAINER 8,400 8,400 8,400 5,495 5,495
CLOUGH & DOUGHERTY, PLLC -RETAINER 12,500 12,500 12,500 12,500 12,500
QUANTUM INTERESTS/DAVID HORN -RETAINER 80,000 40,000 - - -
TONY ROVINSKY -RETAINER 8,000 5,034 2,674 2,674 -
DAVID SEGERS -RETAINER 6,600 6,600 6,600 6,600 6,600
AM SURG - PREPAID MANAGEMENT FEES 228,453 174,289 120,124 80,082 40,041
5005 RIVERWAY - PREPAID RENT 143,677 134,085 122,911 111,738 100,564
14800 LANDMARK - PREPAID RENT 38,793 - -
BAKERSFIELD CBO - PREPAID RENT 3,174 - -
ORLANDO CBO - PREPAID RENT 5,400 2,700 - -
---------- --------- --------- ----------- ---------
TOTAL PREPAID EXPENSES 2,643,776 2,394,106 2,227,692 2,052,927 1,892,640
========== ========= ========= =========== =========
8 OTHER CURRENT ASSETS
-----------------------------
ACCRUED INTEREST ON NOTES RECEIVABLE - 459,532 520,581 528,186 547,873
---------- --------- --------- ----------- ---------
TOTAL OTHER CURRENT ASSETS - 459,532 520,581 528,186 547,873
========== ========= ========= =========== =========
</TABLE>
PAGE 3 OF 14 PAGES
<PAGE>
<TABLE>
<CAPTION>
DETAIL SCHEDULE
---------------------------------------------------------- ACCRUAL BASIS 1
CASE NAME: PHYSICIANS RESOURCE GROUP, INC.
MONTH: MAY 2000
CASE NUMBER: 00-30748-RCM --------------------
----------------------------------------------------------
****AMOUNTS ARE UNAUDITED****
ITEM SCHEDULE
NO DESCRIPTION AMOUNT JANUARY FEBRUARY MARCH APRIL MAY
---------------------------------------------------------------------------------------------------- ----- ---
<S> <C> <C> <C> <C> <C> <C> <C>
14 OTHER ASSETS NET OF AMORTIZATION
----------------------------------------
INVESTMENTS IN SUBSIDIARIES 80,910,621 76,928,562 76,936,716 76,936,716 76,936,716
---------- ---------- ---------- ---------- ----------
TOTAL OTHER ASSETS NET OF AMORTIZATION 80,910,621 76,928,562 76,936,716 76,936,716 76,936,716
========== ========== ========== ========== ==========
</TABLE>
PRG HOLDS EQUITY INTERESTS IN APPROXIMATELY SEVENTY-FIVE MANAGEMENT
SERVICE ORGANIZATIONS AND AMBULATORY SURGICAL CENTERS. FOR AMOUNTS
INCLUDED IN THE "SCHEDULE" COLUMN, PRG HAS ESTIMATED THE CURRENT
MARKET VALUE TO BE APPROXIMATELY $80,000,000 FOR THESE INTERESTS
DISCOUNTED APPROPRIATELY FOR THE UNCERTAINTITIES ASSOCIATED WITH
REALIZING SUCH VALUE, AND EXCLUDING THE VALUE OF POTENTIAL CLAIMS
WHICH MAY BE ASSERTED AGAINST THE PRACTICES BY PRG. MONTHLY BALANCES
REPRESENT HISTORICAL COST BASIS, LESS ANY RESERVE FOR IMPAIRMENT OF
THE ASSET.
<TABLE>
<S> <C> <C> <C> <C> <C> <C> <C>
15 OTHER NON-CURRENT ASSETS
-------------------------------------------
DEPOSIT - CMD REALTY INVESTMENT DALLAS 38,790 38,790 20,072 20,072 20,072
DEPOSIT - FEDERAL EXPRESS - - - 20,072
DEPOSIT - CATALINA BARBER CORP BAKERSFIELD 1,600 1,600 - - -
---------- ---------- ---------- ---------- ---------
TOTAL OTHER NON-CURRENT ASSETS 40,390 40,390 20,072 20,072 21,572
========== ========== ========== ========== =========
20 POST-PETITION LIABILITIES PROFESSIONAL FEES
-------------------------------------------
ACCRUAL FOR ANDREWS & KURTH 994,868
ACCRUAL FOR JACKSON & WALKER 200,000
---------
1,194,868
=========
22 OTHER POST-PETITION LIABILITIES
-------------------------------------------
ACCRUALS FOR ORDINARY COURSE PROFESSIONALS 130,597 122,205 199,594 97,750
ACCRUALS FOR TRAVEL/COMMUNICATIONS - - - 30,560
ACCRUAL FOR US TRUSTEE FEE 1,250 2,500 1,667 3,334
---------- ---------- ---------- ---------
131,847 124,705 201,261 131,644
========== ========== ========== =========
27 OTHER PRE-PETITION LIABILITIES
-------------------------------------------
EMPLOYMENT TAX & W/H LIABILITY ESCROW - 442,726 * 442,726 444,697 444,697
---------- ---------- ---------- ---------- ---------
TOTAL OTHER PRE PETITION LIABILITIES - 442,726 442,726 444,697 444,697
========== ========== ========== ========== =========
</TABLE>
* ACCRUED LIABILITY FOR ADJUSTMENTS WHICH MAY ARISE FORM ERNST &
YOUNG'S REVIEW OF IRS TRANSCRIPTS OF EMPLOYMENT TAX ACTIVITY OF
PHYSICIANS RESOURCE GROUP, INC. AND AFFILIATED ENTITIES. THIS AMOUNT
IS INCLUDED IN THE RESTRICTED CASH BALANCE.
PAGE 4 OF 14 PAGES
<PAGE>
<TABLE>
<CAPTION>
=============================================================================================================
Monthly Operating Report
--------------------------------------------
CASE NAME: PHYSICIANS RESOURCE GROUP, INC. ACCRUAL BASIS-2
CASE NUMBER: 00-30748-RCM
--------------------------------------------
-------------------------------------------
INCOME STATEMENT ****** AMOUNTS ARE UNAUDITED ******
UNAUDITED ----------------------------------------------------------------------------------
-----------------------------------------------------------------------------------------------------------------------------
REVENUES JANUARY FEBRUARY MARCH APRIL MAY TOTAL
<S> <C> <C> <C> <C> <C> <C>
-----------------------------------------------------------------------------------------------------------------------------
1 GROSS REVENUES - - - - - -
-----------------------------------------------------------------------------------------------------------------------------
2 LESS: RETURNS & DISCOUNTS - - - - - -
-----------------------------------------------------------------------------------------------------------------------------
3 NET REVENUE - - - - - -
-----------------------------------------------------------------------------------------------------------------------------
COST OF GOODS SOLD
-----------------------------------------------------------------------------------------------------------------------------
4 MATERIAL - - - - - -
-----------------------------------------------------------------------------------------------------------------------------
5 DIRECT LABOR - - - - - -
-----------------------------------------------------------------------------------------------------------------------------
6 DIRECT OVERHEAD - - - - - -
-----------------------------------------------------------------------------------------------------------------------------
7 TOTAL COST OF GOODS SOLD - - - - - -
=============================================================================================================================
8 GROSS PROFIT - - - - - -
-----------------------------------------------------------------------------------------------------------------------------
OPERATING EXPENSES
-----------------------------------------------------------------------------------------------------------------------------
9 OFFICER/INSIDER COMPENSATION - 63,750 63,750 63,750 63,750 255,000
-----------------------------------------------------------------------------------------------------------------------------
10 SELLING & MARKETING - - -
-----------------------------------------------------------------------------------------------------------------------------
11 GENERAL & ADMINISTRATIVE - 482,174 531,478 723,904 662,231 2,399,787
-----------------------------------------------------------------------------------------------------------------------------
12 RENT & LEASE - 55,586 83,135 58,337 62,421 259,479
----------------------------------------------------------------------------------------------------------------------------
13 OTHER (ATTACH LIST) - 54,165 54,165 40,042 40,042 188,413
----------------------------------------------------------------------------------------------------------------------------
14 TOTAL OPERATING EXPENSES - 655,674 732,529 886,033 828,444 3,102,680
============================================================================================================================
15 INCOME(LOSS) BEFORE NON-
OPERATING INCOME & EXPENSE - (655,674) (732,529) (886,033) (828,444) (2,274,236)
----------------------------------------------------------------------------------------------------------------------------
OTHER INCOME & EXPENSE
----------------------------------------------------------------------------------------------------------------------------
16 NON-OPERATING INCOME - 547,292 296,243 251,012 5,943,767 (2) 7,038,314
----------------------------------------------------------------------------------------------------------------------------
17 NON-OPERATING EXPENSE - 108 - (2,577) (2,469)
----------------------------------------------------------------------------------------------------------------------------
18 INTEREST EXPENSE - - - -
----------------------------------------------------------------------------------------------------------------------------
19 DEPRECIATION/DEPLETION - 54,284 59,625 57,038 53,242 224,188
----------------------------------------------------------------------------------------------------------------------------
20 AMORTIZATION - -
----------------------------------------------------------------------------------------------------------------------------
21 OTHER (ATTACH LIST) - 33,953 (67) 51,806 85,692
----------------------------------------------------------------------------------------------------------------------------
22 NET OTHER INCOME & EXPENSES - 492,900 202,666 196,618 5,838,719 6,730,903
----------------------------------------------------------------------------------------------------------------------------
REORGANIZATION EXPENSES
----------------------------------------------------------------------------------------------------------------------------
23 PROFESSIONAL FEES - 461,183 (1) 420,200 (1) 526,239 (1) 366,692 (1) 1,774,311
----------------------------------------------------------------------------------------------------------------------------
24 U.S. TRUSTEE FEES - 1,250 1,250 4,167 1,667 8,334
----------------------------------------------------------------------------------------------------------------------------
25 OTHER (ATTACH LIST) - -
----------------------------------------------------------------------------------------------------------------------------
26 TOTAL REORGANIZATION EXPENSES - 462,433 421,450 530,406 368,359 1,782,648
----------------------------------------------------------------------------------------------------------------------------
27 INCOME TAX - -
----------------------------------------------------------------------------------------------------------------------------
28 NET PROFIT (LOSS) - (625,207) (951,313) (1,219,821) 4,641,916 1,845,575
----------------------------------------------------------------------------------------------------------------------------
============================================================================================================================
</TABLE>
(1) Expenses previously reported as professional fees were reclassed to
consulting fees (G&A) line 11 in May 2000. Professional fees include
only professionals listed in MOR-6 Professionals detail. Prior months
have also been reclassed.
(2) Taboada settlement completed May 2, 2000. Funds were deposited into
Andrews Kurth's escrow account and transferred to PRG in June.
PAGE 5 OF 14 PAGES
<PAGE>
------------------------------------------
CASE NAME: PHYSICIANS RESOURCE GROUP, INC. DETAIL SCHEDULES
ACCRUAL BASIS 2
CASE NUMBER: 00-30748-RCM MONTH: MAY 2000
------------------------------------------ --------------
<TABLE>
<CAPTION>
ITEM *** AMOUNTS ARE UNAUDITED ***
NO DESCRIPTION JANUARY FEBRUARY MARCH APRIL MAY
-----------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
11 GENERAL & ADMINISTRATIVE:
------------------------------
SALARIES 221,522 231,686 179,593 142,340
CONSULTING FEES 159,746 101,958 335,318 307,648 (1)
PAYROLL TAXES 22,068 42,398 14,772 13,277
INSURANCE 61,938 58,888 83,900 131,953
TRAVEL 2,096 8,108 5,832 9,189
LODGING 914 3,839 1,766 3,216
CONTRACT LABOR 6,732 5,779 8,559 3,533
OFFICE SUPPLIES & EXPENSE 5,144 10,220 11,872 13,795
POSTAGE & DELIVERY - 1,519 816 1,991
TELEPHONE 935 23,527 76,988 32,709
MAINTENANCE & REPAIR 456 42,651 2,279 1,657
DATA PROCESSING 623 906 2,208 922
--------- -------- -------- --------
TOTAL GENERAL & ADMINISTRATIVE 482,174 531,479 723,903 662,230
========= ======== ======== ========
(1) Includes $117,000 legal fees for Taboada settlement
13 OTHER OPERATING EXPENSES
------------------------------
ASC MANAGEMENT FEES 54,165 54,165 40,042 40,042
--------- -------- -------- --------
TOTAL OTHER OPERATING EXPENSES 54,165 54,165 40,042 40,042
========= ======== ======== ========
16 NON-OPERATING INCOME
------------------------------
TABOADA SETTLEMENT 5,759,551
GAIN (LOSS) ON SALE OF ASSETS - (22,077) 1,375 (114,547)
TAX REFUND 6,664 - - -
INTEREST INCOME 190,627 315,080 245,515 298,748
LEGAL EXPENSE REIMBURSEMENT 350,000 - - -
MISCELLANEOUS - 3,240 4,123 15
--------- -------- -------- --------
TOTAL OTHER INCOME & EXPENSE 547,291 296,243 251,012 5,943,767
========= ======== ======== ========
21 NON-OPERATING EXPENSES
------------------------------
PENALTIES & LATE FEES - 20,096 (67) 25
FRANCHISE TAXES - - - 66,650
PROPERTY TAXES - 13,857 - (14,870)
--------- -------- -------- --------
TOTAL OTHER NON OPERATING EXPENSES - 33,953 (67) 51,805
========= ======== ======== ========
</TABLE>
PAGE 6 OF 14 PAGES
<PAGE>
<TABLE>
<CAPTION>
===========================================================================================================================
Monthly Operating Report
-------------------------------------------
CASE NAME: PHYSICIANS RESOURCE GROUP, INC.
ACCRUAL BASIS-3
CASE NUMBER: 00-30748-RCM
-------------------------------------------
****** AMOUNTS ARE UNAUDITED ******
------------------------------------------------------------------------------------
----------------------------------------------------------------------------------------------------------------------------------
CASH RECEIPTS AND JANUARY FEBRUARY MARCH APRIL MAY QUARTER
DISBURSEMENTS - UNAUDITED TOTAL
----------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
1 BEGINNING BALANCE 47,747,118 47,747,118 49,389,301 49,086,692 48,612,065 47,747,118
----------------------------------------------------------------------------------------------------------------------------------
RECEIPTS FROM OPERATIONS
----------------------------------------------------------------------------------------------------------------------------------
2 CASH SALES - -
----------------------------------------------------------------------------------------------------------------------------------
COLLECTION OF ACCOUNTS RECEIVABLE
----------------------------------------------------------------------------------------------------------------------------------
3 PREPETITION - -
----------------------------------------------------------------------------------------------------------------------------------
4 POSTPETITION - -
----------------------------------------------------------------------------------------------------------------------------------
5 TOTAL OPERATING RECEIPTS - - - -
----------------------------------------------------------------------------------------------------------------------------------
NON-OPERATING RECEIPTS
----------------------------------------------------------------------------------------------------------------------------------
6 LOANS & ADVANCES (ATTACH LIST) - -
----------------------------------------------------------------------------------------------------------------------------------
7 SALE OF ASSETS - -
----------------------------------------------------------------------------------------------------------------------------------
8 OTHER (ATTACH LIST) - 2,100,148 317,020 256,327 375,929 3,049,425
----------------------------------------------------------------------------------------------------------------------------------
9 TOTAL NON-OPERATING RECEIPTS - 2,100,148 317,020 256,327 375,929 3,049,425
==================================================================================================================================
10 TOTAL RECEIPTS - 2,100,148 317,020 256,327 375,929 3,049,425
==================================================================================================================================
11 TOTAL CASH AVAILABLE 47,747,118 49,847,266 49,706,321 49,343,019 48,987,994 50,796,543
----------------------------------------------------------------------------------------------------------------------------------
OPERATING DISBURSEMENTS
----------------------------------------------------------------------------------------------------------------------------------
12 NET PAYROLL - 212,195 156,307 172,989 142,770 684,262
----------------------------------------------------------------------------------------------------------------------------------
13 PAYROLL TAXES PAID - 214,427 76,264 87,977 71,297 449,965
----------------------------------------------------------------------------------------------------------------------------------
14 SALES, USE & OTHER TAXES PAID - - 73,448 53,141 87,626 214,215
----------------------------------------------------------------------------------------------------------------------------------
15 SECURED/ RENTAL/ LEASES (NOTE 1) - - - - - -
----------------------------------------------------------------------------------------------------------------------------------
16 UTILITIES - 923 24,575 30,030 42,742 98,270
----------------------------------------------------------------------------------------------------------------------------------
17 INSURANCE - 1,927 17,581 16,222 81,202 116,931
----------------------------------------------------------------------------------------------------------------------------------
18 INVENTORY PURCHASES - - - - - -
----------------------------------------------------------------------------------------------------------------------------------
19 VEHICLE EXPENSE - - - - - -
----------------------------------------------------------------------------------------------------------------------------------
20 TRAVEL - 3,377 9,233 8,057 6,759 27,426
----------------------------------------------------------------------------------------------------------------------------------
21 ENTERTAINMENT - ONSITE MEALS - 764 340 - 1,167 2,271
----------------------------------------------------------------------------------------------------------------------------------
22 REPAIRS & MAINTENANCE - 456 5,479 2,604 9,071 17,610
----------------------------------------------------------------------------------------------------------------------------------
23 SUPPLIES - 6,066 8,801 11,451 14,289 40,607
----------------------------------------------------------------------------------------------------------------------------------
24 ADVERTISING - - - - - -
----------------------------------------------------------------------------------------------------------------------------------
25 OTHER (ATTACH LIST) - 17,829 238,431 136,581 279,825 672,667
----------------------------------------------------------------------------------------------------------------------------------
26 TOTAL OPERATING DISBURSEMENTS - 457,965 610,459 519,051 736,749 2,324,223
----------------------------------------------------------------------------------------------------------------------------------
REORGANIZATION FEES
----------------------------------------------------------------------------------------------------------------------------------
27 PROFESSIONAL FEES - - - 206,903 128,168 335,071
----------------------------------------------------------------------------------------------------------------------------------
28 U.S. TRUSTEE FEES - - - 5,000 - 5,000
----------------------------------------------------------------------------------------------------------------------------------
29 OTHER (ATTACH LIST) - - 9,171 - - 9,171
----------------------------------------------------------------------------------------------------------------------------------
30 TOTAL REORGANIZATION EXPENSES - - 9,171 211,903 128,168 349,242
----------------------------------------------------------------------------------------------------------------------------------
31 TOTAL DISBURSEMENTS - 457,966 619,629 730,954 864,917 2,673,466
----------------------------------------------------------------------------------------------------------------------------------
32 NET CASH FLOW - 1,642,183 (302,609) (474,627) (488,988) 375,959
----------------------------------------------------------------------------------------------------------------------------------
33 CASH - END OF MONTH 47,747,118 49,389,301 49,086,692 48,612,065 48,123,077 48,123,077
----------------------------------------------------------------------------------------------------------------------------------
==================================================================================================================================
</TABLE>
NOTE 1: Amounts previously reported on this line have been reclassified to
Other and included as Office and Storage Unit Rental on the
detailed schedule. There are no capital leases or secured lease
obligations.
PAGE: 7 OF 14 PAGES
<PAGE>
----------------------------------------------- DETAIL SCHEDULES
CASE NAME: PHYSICIANS RESOURCE GROUP, INC. ACCRUAL BASIS 3
CASE NUMBER: 00-30748-RCM MONTH: MAY 2000
----------------------------------------------- ----------
<TABLE>
<CAPTION>
ITEM *** AMOUNTS ARE UNAUDITED ***
NO DESCRIPTION JANUARY FEBRUARY MARCH APRIL MAY
---- ----------- ------- -------- ------- ------- ------
<S> <C> <C> <C> <C> <C> <C>
NON OPERATING RECEIPTS
--------------------------------------------
7 SALE OF ASSETS:
EXCESS FURNITURE FROM THE DALLAS OFFICE - - - 20,000
--------- ------- ------- -------
SUB-TOTAL SALES OF ASSETS - - - 20,000
========= ======= ======= =======
8 OTHER:
COLLECTION ON RECEIVABLE 1,682,317 47,462 10,516 8,544
INTEREST INCOME - 204,985 235,025 276,244
D & O INSURANCE CLAIM REFUND 350,000 - - -
TAX REFUNDS 35,460 - - -
COBRA PAYMENTS RECEIVED 13,346 17,667 6,171 4,990
REPAYMENT WORKING CAPITAL ADV 12,000 - - -
SALE OF FURNITURE & FIXTURES (REMOTE OFCS) 6,654 3,275 500
RETURNED CHECKS - 41,521 - -
REFUND OF LEGAL RETAINER - - - 66,051
REIMBURSEMENT OF ADMIN EXPENSES 371 2,111 4,115 100
--------- ------- ------- -------
2,100,148 317,020 256,327 355,929
========= ======= ======= =======
TOTAL NON OPERATING RECEIPTS 2,100,148 317,020 256,327 375,929
--------- ------- ------- -------
25 OTHER OPERATING DISBURSEMENTS
--------------------------------------------
INVESTOR RELATIONS - 3,500 4,130 379
CONTRACT LABOR - OTHER 6,732 10,992 19,899 6,505
PENALTIES & LATE FEES 108 65 1,038 4,285
CONSULTING FEES 8,616 129,425 83,675 216,417
OFFICE & STORAGE UNIT RENTAL 350 93,108 25,610 51,319
DATA PROCESSING SERVICES 623 906 1,707 624
TRAINING - - 522 297
TAX LIABILITY - CURRENT PORTION 1,400 435 - -
--------- ------- ------- -------
TOTAL OTHER OPERATING DISBURSEMENTS 17,829 238,431 136,581 279,825
========= ======= ======= =======
29 OTHER REORGANIZATION FEES
--------------------------------------------
ADVERTISING OF BANKRUPTCY IN WSJ & OTHER PUBS - 5,669 - -
INVESTOR RELATIONS - 3,500 - -
--------- ------- ------- -------
9,169
========= ======= ======= =======
</TABLE>
PAGE 8 OF 14 PAGES
<PAGE>
<TABLE>
<CAPTION>
========================================================================================================================
Monthly Operating Report
---------------------------------------------
CASE NAME: PHYSICIANS RESOURCE GROUP, INC.
ACCRUAL BASIS-4
CASE NUMBER: 00-30748-RCM
---------------------------------------------
********** ALL AMOUNTS ARE UNAUDITED **********
--------------------------------------------------------------------------------------------------------------------
SCHEDULE JANUARY FEBRUARY MARCH APRIL
ACCOUNTS RECEIVABLE AGING AMOUNT
--------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
1 0 - 60 -
--------------------------------------------------------------------------------------------------------------------
2 31 - 60 -
--------------------------------------------------------------------------------------------------------------------
3 61 - 90 -
--------------------------------------------------------------------------------------------------------------------
4 91 + -
====================================================================================================================
5 TOTAL ACCOUNTS RECEIVABLE - - - - -
--------------------------------------------------------------------------------------------------------------------
6 AMOUNT CONSIDERED UNCORRECTABLE - - - -
====================================================================================================================
7 ACCOUNTS RECEIVABLE (NET) - - - - -
====================================================================================================================
</TABLE>
<TABLE>
<CAPTION>
----------------------------------
AGING OF POSTPETITION TAXES MONTH: MAY 2000
-------------------------------
AND PAYABLES
------------------------------------------------------------------------------------------------------
TAXES PAYABLE 0 - 30 DAYS 31 - 60 DAYS 61 - 90 DAYS TOTAL
-------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
1 FEDERAL - -
-------------------------------------------------------------------------------------------------------
2 STATE - -
-------------------------------------------------------------------------------------------------------
3 LOCAL - -
-------------------------------------------------------------------------------------------------------
4 OTHER (ATTACH LIST) -
=======================================================================================================
5 TOTAL TAXES PAYABLE - - - -
=======================================================================================================
-------------------------------------------------------------------------------------------------------
6 ACCOUNTS PAYABLE 152,303 72,457 (1) 125,196 (2) 349,955
=======================================================================================================
(1) In accordance with court order,
unpaid liabilities to professionals
(Jackson & Walker liability of
$65,167, and Hughes & Luce
liability of $7,289) until
approved for payment by court.
(2) In accordance with court order,
unpaid liabilities to professionals
(Andrews & Kurth liability of
$92,426 and Jackson & Walker
liability of $16,695) until
approved for payment by court.
Disputed invoice with MCI $16,074
</TABLE>
<TABLE>
<CAPTION>
-------------------------------
STATUS OF POSTPETITION TAXES
MONTH: MAY 2000
--------------------------------
-------------------------------------------------------------------------------------------------------
FEDERAL (ADP REPORTS ATTACHED)
-------------------------------------------------------------------------------------------------------
BEGINNING TAX AMOUNT ENDING TAX
LIABILITY WITHHELD AMOUNT PAID LIABILITY
-------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
1 WITHHOLDING ** - 47,316 47,316 -
-------------------------------------------------------------------------------------------------------
2 FICA-EMPLOYEE ** - 11,582 11,582 -
-------------------------------------------------------------------------------------------------------
3 FICA-EMPLOYER ** - 11,582 11,582 -
-------------------------------------------------------------------------------------------------------
4 UNEMPLOYMENT - - - -
-------------------------------------------------------------------------------------------------------
5 INCOME - - - -
-------------------------------------------------------------------------------------------------------
6 OTHER(ATTACH LIST) - - - -
=======================================================================================================
7 TOTAL FEDERAL TAXES - 70,480 70,480 -
=======================================================================================================
STATE AND LOCAL
-------------------------------------------------------------------------------------------------------
8 WITHHOLDING - 691 691 -
-------------------------------------------------------------------------------------------------------
9 SALES - - - -
-------------------------------------------------------------------------------------------------------
10 EXCISE - - - -
-------------------------------------------------------------------------------------------------------
11 UNEMPLOYMENT (Note 1) - 127 127 -
-------------------------------------------------------------------------------------------------------
12 REAL PROPERTY - - - -
-------------------------------------------------------------------------------------------------------
13 PERSONAL PROPERTY - - - -
-------------------------------------------------------------------------------------------------------
14 OTHER (ATTACH LIST) - - - -
=======================================================================================================
15 TOTAL STATE & LOCAL - 818 818 -
=======================================================================================================
16 TOTAL TAXES - 71,297 71,297 -
=======================================================================================================
* 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.
Note: AB-3 includes amounts from ADP reports only. This total includes an adjustment
picked up on the bank reconciliation.
========================================================================================================================
</TABLE>
PAGE 9 OF 14 PAGES
<PAGE>
================================================================================
Monthly Operating Report
------------------------------------------
CASE NAME: PHYSICIANS RESOURCE GROUP, INC.
ACCRUAL BASIS-5
CASE NUMBER: 00-30748-RCM
------------------------------------------
The debtor in possession must complete the reconciliation below for each bank
account, including 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.
********** ALL AMOUNTS ARE UNAUDITED **********
<TABLE>
<CAPTION>
-----------------------------------------
BANK RECONCILIATIONS MONTH: MAY 2000
---------------------
------------------------------------------------------------------------------------------------------------------
A. BANK SWBOT SWBOT SWBOT SWBOT COMERICA *
------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
B. ACCOUNT NUMBER 326003 300993 30100 301019 1880647522 TOTAL
------------------------------------------------------------------------------------------------------------------
Eye Corp PRG Georgia
C. PURPOSE (TYPE) OPERATING (1) Proceeds Proceeds AOI Proceeds TAX ESCROW
=================================================================================================================================
1 BALANCE PER BANK STATEMENT 1,800,960 1,800,960
---------------------------------------------------------------------------------------------------------------------------------
2 ADD: TOTAL DEPOSITS NOT CREDITED -
---------------------------------------------------------------------------------------------------------------------------------
3 SUBTRACT: OUTSTANDING CHECKS 317,772 317,772
---------------------------------------------------------------------------------------------------------------------------------
4 OTHER RECONCILING ITEMS -
---------------------------------------------------------------------------------------------------------------------------------
5 MONTH END BALANCE PER BOOKS 1,483,188 - - - 843,161 2,326,348
---------------------------------------------------------------------------------------------------------------------------------
6 NUMBER OF LAST CHECK WRITTEN 1631 N/A
=================================================================================================================================
</TABLE>
* Escrow for potential tax payments resulting from the Ernst & Young
review of IRS transcripts for Physicians resource Group, Inc. and affiliated
companies.
(1) This is a zero balance account. Cash balances at the end of the day are
swept into overnight interest bearing investments.
<TABLE>
<CAPTION>
-----------------------------------
INVESTMENT ACCOUNTS MONTH: MAY 2000
----------------------
--------------------------------------------------------------------------------------------------------------------
DATE OF PURCHASE CURRENT
BANK ACCOUNT NAME AND NUMBER PURCHASE TYPE OF INSTRUMENT PRICE VALUE
--------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
7 Southwest Bank of Texas 18-May-00 US Treasury Bill 21,844,285 21,911,672
--------------------------------------------------------------------------------------------------------------------
8 Southwest Bank of Texas 2-Mar-00 US Treasury Bill 23,384,140 23,728,077
--------------------------------------------------------------------------------------------------------------------
9 Southwest Bank of Texas 21-Jan-00 Certificate of Deposit 154,000 156,980
--------------------------------------------------------------------------------------------------------------------
10 TOTAL INVESTMENTS 23,538,140 45,796,728
--------------------------------------------------------------------------------------------------------------------
-----------------------------------
CASH
--------------------------------------------------------------------------------------------------------------------
11 CURRENCY ON HAND -
--------------------------------------------------------------------------------------------------------------------
--------------------------------------------------------------------------------------------------------------------
12 TOTAL CASH - END OF MONTH 48,123,077
--------------------------------------------------------------------------------------------------------------------
</TABLE>
================================================================================
PAGE: 10 OF 14 PAGES
<PAGE>
<TABLE>
<S> <C>
=========================================================================================================
Monthly Operating Report
------------------------------------------------
CASE NAME: PHYSICIANS RESOURCE GROUP, INC.
CASE NUMBER: 00-30748-RCM ACCRUAL BASIS-6
------------------------------------------------
MONTH: MAY 2000
-----------------------
</TABLE>
********** ALL AMOUNTS ARE UNAUDITED **********
-------------------------------------------------
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 THE PROFESSIONALS. ALSO FOR 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
--------------------------------------------------------------------------
NAME TYPE OF AMOUNT TOTAL PAID
PAYMENT PAID TO DATE
--------------------------------------------------------------------------
1 LANE EDENBURN SALARY 14,583 58,333
--------------------------------------------------------------------------
2 KAREN NICOLAOU SALARY 11,667 46,667
--------------------------------------------------------------------------
3 MICHAEL YEARY SALARY 37,500 150,000
--------------------------------------------------------------------------
SUBTOTAL 63,750 255,000
--------------------------------------------------------------------------
4 KAREN NICOLAOU EXP REIMBRMT 2,633 6,787
--------------------------------------------------------------------------
5 MICHAEL YEARY EXP REIMBRMT - 5,855
--------------------------------------------------------------------------
6 LANE EDENBURN EXP REIMBRMT 309 991
--------------------------------------------------------------------------
6 TOTAL PAYMENTS TO INSIDERS 66,383 267,642
--------------------------------------------------------------------------
Note: Insiders Salary is reported on line 9,
MOR-2. Expense reimbursements for insiders
is included in line 11, MOR-2
<TABLE>
<CAPTION>
-------------------------------------------------------------------------------------------------------------
PROFESSIONALS
-------------------------------------------------------------------------------------------------------------
DATE OF COURT
ORDER TOTAL
AUTHORIZING AMOUNT AMOUNT TOTAL PAID INCURRED &
NAME PAYMENT APPROVED PAID TO DATE UNPAID * (1)
-------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
1 ANDREWS & KURTH 0 0 165,865 829,003
-------------------------------------------------------------------------------------------------------------
2 JACKSON & WALKER 66,608 66,608 66,608 385,834
-------------------------------------------------------------------------------------------------------------
3 MANN FRANKFORT - - -
-------------------------------------------------------------------------------------------------------------
4 QUANTUM INTERESTS 20,774 20,774 141,812 -
-------------------------------------------------------------------------------------------------------------
5 HUGHES & LUCE 29,482 29,482 29,482 91,257
-------------------------------------------------------------------------------------------------------------
6 BELL & NUNNELLY 11,305 11,305 11,305 16,060
-------------------------------------------------------------------------------------------------------------
5 TOTAL PAYMENTS TO
PROFESSIONALS 128,168 128,168 374,285 1,322,154
-------------------------------------------------------------------------------------------------------------
</TABLE>
* INCLUDE ALL FEES INCURRED, BOTH APPROVED AND UNAPPROVED.
--------------------------------------------------------------------------
POST PETITION STATUS OF SECURED NOTES, LEASES PAYABLE AND ADEQUATE
PROTECTION PAYMENTS
--------------------------------------------------------------------------
<TABLE>
<CAPTION>
---------------------------------------------------------------------------------------------
SCHEDULED
MONTHLY AMOUNTS PAID TOTAL UNPAID
NAME OF CREDITOR PAYMENTS DUE DURING MONTH POSTPETITION
---------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
1
---------------------------------------------------------------------------------------------
2
---------------------------------------------------------------------------------------------
3
---------------------------------------------------------------------------------------------
4
---------------------------------------------------------------------------------------------
5
---------------------------------------------------------------------------------------------
6 TOTAL
---------------------------------------------------------------------------------------------
===============================================================================
</TABLE>
PAGE 11 OF 14 PAGES
<PAGE>
<TABLE>
<CAPTION>
----------------------------------------------------
CASE NAME: PHYSICIANS RESOURCE GROUP, INC. MONTHLY OPERATING REPORT
CASE NUMBER: 00-30748-RCM ACCRUAL BASIS - 7
----------------------------------------------------
----------------------------------------------------
QUESTIONNAIRE MONTH: MAY 2000
---------------------------
---------------------------------------------------
YES NO
-------------------------------------------------------------------------------------------------------------
<S> <C> <C>
1 Have any assets been sold or transferred outside the normal course of
business in 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
-------------------------------------------------------------------------------------------------------------
</TABLE>
If the answer to any of the above questions is "yes," provide a detailed
explanation of each item. Attach additional sheets if necessary.
In accordance with court order, a total of twenty one thousand eight hundred
--------------------------------------------------------------------------------
seventy eight dollars and thirty-four cents ($21,878) was paid for prepetition
--------------------------------------------------------------------------------
property and franchise taxes for Physician's Resource Group, Inc. and its
--------------------------------------------------------------------------------
affiliated companies.
--------------------------------------------------------------------------------
-------------------------------------------------------
INSURANCE
--------------------------------------------------------------------------------
YES NO
--------------------------------------------------------------------------------
1 Are workers compensation, general liability and other X
necessary insurance coverages in effect?
--------------------------------------------------------------------------------
2 Are all premium payments paid current. X
--------------------------------------------------------------------------------
3 Please itemized policies below. SCHEDULE ATTACHED
--------------------------------------------------------------------------------
If the answer to any of the above questions is "no", or if any policies have
been cancelled or not renewed during the reporting period, provide and
explanation below. Attach additional sheets if necessary.
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
---------------------------------------------------------------------------------------------------------------------
INSTALLMENT PAYMENTS
---------------------------------------------------------------------------------------------------------------------
---------------------------------------------------------------------------------------------------------------------
TYPE OF POLICY CARRIER PERIOD PAYMENT
---------------------------
COVERED AMOUNT FREQUENCY
---------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
1 Property "all risk" except policy exclusions Hartford 12/99 - 12/00 11,673 MNTHLY
---------------------------------------------------------------------------------------------------------------------
2 Umbrella Liability excess of schedule of TIG Specialty 06/99 - 06/00 48,579 QTRLY
underlying insurance
---------------------------------------------------------------------------------------------------------------------
</TABLE>
PAGE 12 OF 14 PAGES
<PAGE>
<TABLE>
<CAPTION>
--------------------------------------------------------
CASE NAME: PHYSICIANS RESOURCE GROUP, INC.
CASE NUMBER: 00-30748-RCM RESPONSES TO QUESTIONNAIRE
--------------------------------------------------------
MONTH: MAY 2000
----------
QUESTIONNAIRE
------------------------------------------------------------------------------------------------------
11 Prepetition taxes
---------------------------------------------------------------------------------------------
Taxing Authority Amount Paid Description
<S> <C> <C>
Clear Lake Water Authority $ 359.36 Property Taxes & Penalties- 1999
Doug Belden, Tax Collector 35.17 Property Taxes & Penalties- 1999
Internal Revenue Service 651.65 1065 Taxes & Penalties- 1995
Internal Revenue Service 626.21 940 Taxes & Penalties- 1997
Karl Zimmerman 80.99 Property Taxes & Penalties- 1999
Marion County Tax Collector 7,659.30 Property Taxes & Penalties- 1999
Mike Olson, Tax Collector 53.80 Property Taxes & Penalties- 1999
Mohave County Treasurer 4,272.54 Property Taxes & Penalties- 1999
New York State Corp. tax 889.57 Franchise Taxes & Penalties- 1999
North Carolina Dept. Of Revenue 45.47 Franchise Taxes & Penalties- 1999
Ohio Bureau of Employment 121.79 Payroll Tax Lien- 1999
Oklahoma Tax Commission 1,022.50 Franchise Taxes & Penalties- 1999
Oklahoma Tax Commission 5,500.00 Taxes & Penalties- 1999
Oregon Dept. Of Revenue 10.71 Taxes & Penalties- 1998
Pennsylvania Dept. Of Revenue 348.00 Taxes & Penalties- 1997
State Tax Commission 26.13 FranchiseTaxes & Penalties- 1999
SouthCarolina Dept. Of Revenue 25.00 FranchiseTaxes & Penalties- 1999
Sylvia Romo, Collector of Taxes 130.15 Property Taxes & Penalties- 1999
United States Treasury 20.00 Property Taxes & Penalties- 1999
===========
Total Paid $21,878.34
===========
Insurance:
------------------------------------------------------------------------------------------------------
2 Premiums paid currently.
---------------------------------------------------------------------------------------------
</TABLE>
In accordance with the cash management orders, PRG instructed its bank
not to honor checks presented after February 01, 2000 dated January 31,
2000 and prior. Included in these outstanding items were $12,200 in
checks payable to AON Risk Services of Texas. AON is in the process of
re-billing PRG and its subsidiaries. The accounts will be brought
current as soon as new invoices are received. Corporate invoices are
being paid currently, and PRG has not received notice of cancellation
or potential cancellation.
PAGE 13 OF 14 PAGES
<PAGE>
--------------------------------------------
CASE NAME: PHYSICIANS RESOURCE GROUP, INC. MONTHLY OPERATING REPORT
CASE NUMBER: 00-30748-RCM SCHEDULE OF INSURANCE COVERAGE
--------------------------------------------
MONTH: MAY 2000
-------------
<TABLE>
<CAPTION>
POLICY PERIOD
----------------------- LIMIT OF
TYPE OF COVERAGE CARRIER INCEPTION EXPIRATION PREMIUM: LIABILITY
------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
1 Directors, Officers and Corporate Liability National Union Fire Insur 20-Apr-99 20-Apr-00 $ 724,000 $10,000,000
(Renewal and Extension) Co of Pittsburgh, PA
2 Directors, Officers and Corporate Liability National Union Fire Insur 20-Apr-00 20-Apr-01 $ 450,000 $10,000,000
(One year extension of coverage) Co of Pittsburgh, PA
3 Directors, Officers and Corporate Liability National Union Fire Insur 20-Apr-01 20-Apr-07 $ 450,000 $10,000,000
(Six year run off.) Co of Pittsburgh, PA
4 Employed Lawyers Liability Insurance National Union Fire Insur 20-Apr-99 20-Apr-00 $ 9,160 $ 5,000,000
(Note 1) Co of Pittsburgh, PA
5 Commercial Crime National Union Fire Insur 20-Apr-99 20-Apr-00 $ 15,591 $ 5,000,000
(Note 2) Co of Pittsburgh, PA
6 Workers Compensation - Standard forms; Hartford Insurance Co/ 31-Dec-99 31-Dec-00 $ 28,259 $ 1,000,000
Extended Broad Form endorsement where Mid West Insur
applicable
7 Auto Standard Forms & Broad Form Auto Hartford Insurance Co 31-Dec-99 31-Dec-00 $ 2,300 $ 1,000,000
Endorsement
8 Property Hartford Insurance Co 31-Dec-99 31-Dec-00 $ 140,073 $43,835,755
9 Umbrella Liability TIG Specialty Insurance 1-Jun-99 1-Jun-00 $ 185,061 $10,000,000
</TABLE>
Note 1: Policy has been extended for a period of one year on terms
substantailly the same as the expiring coverage.
Note 2: Policy has been extended for a period of approximately thirty days
pending completion of negotiations with the underwriter.
PAGE 14 OF 14 PAGES
