PROPERTY, PLANT AND EQUIPMENT

6 Months Ended

Jun. 30, 2012

NOTE D - PROPERTY, PLANT AND EQUIPMENT

	December 31, 2011			June 30, 2012

Land	$	512,000		$	512,000
Terminal and improvements		4,356,000			4,463,000
Automotive equipment		2,697,000			1,341,000
		7,565,000			6,316,000
Less: accumulated depreciation and amortization		(3,645,000	)		(2,841,000	)
	$	3,920,000		$	3,475,000

Depreciation expense of property, plant and equipment totaled $165,000 and $147,000 for the three months ended June 30 2011 and 2012 and $330,000 and $297,000 for the six months ended June 30, 2011 and 2012, respectively.

Sale of Regional’s Owned Tractor Fleet

On February 17, 2012, in connection with Regional’s Vehicle Lease Service Agreement (see Note H), Regional sold six of its owned tractors for proceeds of $97,000 of which $90,000 was used to fund the deposit required pursuant to the aforementioned agreement and the remainder was used for working capital.

During May 2012 and June 2012, in connection with Regional’s Vehicle Lease Service Agreement (see Note H), Regional sold twenty-one of its owned tractors for total proceeds of $410,000. As of June 30, 2012, $177,000 of the proceeds were used to fund working capital requirements. The remaining balance of the proceeds at June 30, 2012 totaling approximately $233,000 was held in a restricted cash account with RZB (see below).

In connection with the sale of the tractor fleet, a gain of $256,000 was recorded during the six months ended June 30, 2012.

As a result of the aforementioned sale of Regional’s owned tractors, Regional’s truck fleet currently consists of twenty leased tractors and five owned tractors.

- Definition

The entire disclosure for long-lived, physical assets that are used in the normal conduct of business to produce goods and services and not intended for resale. Examples include land, buildings, machinery and equipment, and other types of furniture and equipment including, but not limited to, office equipment, furniture and fixtures, and computer equipment and software. This disclosure may include property plant and equipment accounting policies and methodology, a schedule of property, plant and equipment gross, additions, deletions, transfers and other changes, depreciation, depletion and amortization expense, net, accumulated depreciation, depletion and amortization expense and useful lives, income statement disclosures, assets held for sale and public utility disclosures.

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