<PAGE>
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of The Securities Exchange Act of 1934
Date of Report (Date of earliest event reported) September 8, 1997
-------------------------------
OMEGA ENVIRONMENTAL, INC.
(EXACT NAME OF REGISTRANT AS SPECIFIED IN ITS CHARTER)
Commission File Number 0-20267
DELAWARE 91-1499751
(STATE OR OTHER JURISDICTION OF (I.R.S. EMPLOYER IDENTIFICATION NO.)
INCORPORATION OR ORGANIZATION)
19805 NORTH CREEK PARKWAY, PO BOX 3005
BOTHELL, WASHINGTON 98041-3005
(ADDRESS OF PRINCIPAL EXECUTIVE OFFICES) (ZIP CODE)
425-486-4800
(REGISTRANT'S TELEPHONE NUMBER, INCLUDING AREA CODE)
----------------------------------------------------------------------
(FORMER NAME, FORMER ADDRESS AND FORMER FISCAL YEAR, IF
CHANGED SINCE LAST REPORT)
<PAGE>
ITEM 3. BANKRUPTCY OR RECEIVERSHIP
On May 2, 1997, Registrant filed a voluntary petition for relief under
Chapter 11 of the Bankruptcy Code. On July 2, 1997, Registrant and
BNY Financial Corporation ("BNY"), Registrant's primary secured
creditor, entered into a stipulation providing for
debtor-in-possession financing of Registrant's business during the
Chapter 11 proceedings. On July 30, 1997, Registrant received final
Bankruptcy Court approval for its debtor-in-possession financing. The
credit facility with BNY expires December 31, 1997.
ITEM 5. OTHER EVENTS
LATE FORM 10-K AND FORM 10-Q
Effective on the close of business September 3, 1997, NASDAQ Stock
Market, Inc. deleted the Registrant's common stock from the NASDAQ
National Market due to its inability to file its Form 10-K on a timely
basis. The failure of the Company's secured lender and accounting
firm to reach agreement on conditions to finance the conduct of an
audit for the fiscal year-ended March 31, 1997 has led to the
inability of the Company to file its annual report on Form 10-K for
such fiscal year. The Company is not seeking a review of this
decision. Registrant's shares may be quoted in the National Daily
Quotation sheets, which are commonly referred to as the "pink sheets."
There can be no assurance that the shares will be traded on any
market.
UNAUDITED FINANCIAL STATEMENT INFORMATION
On September 8, 1997, the Registrant filed unaudited financial
statement information as of and for each of the months ended June 30,
1997 and May 31, 1997 with related note with the United States
Bankruptcy Court. Attached as an exhibit is the balance sheet
information, statement of operations information, cash flow
information and related note to financial information which was
included in the bankruptcy filing referred to above.
ITEM 7. FINANCIAL STATEMENTS AND EXHIBITS
(c) EXHIBITS
10.1 Final Order Re Authority to Borrow; Relief From Stay;
Granting Security Interests and Priority.
99.1 Press Release, dated September 3, 1997.
99.2 Unaudited Financial Statement Information as of and for each
of the months ended June 30, 1997 and May 31, 1997 with
related note.
<PAGE>
SIGNATURES
Pursuant to the requirements of the Securities and Exchange Act of 1934, the
Registrant has duly caused this report to be signed on its behalf by the
undersigned hereunto duly authorized.
OMEGA ENVIRONMENTAL, INC.
(Registrant)
Date: September 8, 1997 /s/ Bradley S. Powell
-----------------------------------
Bradley S. Powell
Vice President/Corporate Controller
<PAGE>
EXHIBIT 10.1
GIBSON, DUNN & CRUTCHER LLP Honorable Samuel J. Steiner
JONATHAN M. LANDERS, SBN 103501 Chapter 11
DESMOND CUSSEN, SBN 154936 Hearing Date: July 30, 1997
One Montgomery Street Hearing Time: 9:00 a.m.
Telesis Tower, 31st Floor Response Date: N/A
San Francisco, CA 94104-4505
(415) 393-8200
HELSELL FETTERMAN LLP
RAGAN L. POWERS, WSBA #11935
1500 Puget Sound Plaza
1325 Fourth Avenue
Seattle, WA 98101-2509
(206) 292-1144
Attorneys for DEBTOR
OMEGA ENVIRONMENTAL, INC.
UNITED STATES BANKRUPTCY COURT
FOR THE WESTERN DISTRICT OF WASHINGTON
AT SEATTLE
In Re:
OMEGA ENVIRONMENTAL, INC., a NO. 97-06084
Delaware corporation,
Debtor. FINAL ORDER RE AUTHORITY TO BORROW;
RELIEF FROM STAY; GRANTING SECURITY
INTERESTS AND PRIORITY
- -------------------------------------
The Application of Debtor and Debtor-in-Possession: For Authority to Borrow On A
Secured Basis; For Relief From Stay; And For Order Granting Security Interests
And Priority (the "Application"); came on for hearing before the undersigned
Bankruptcy Judge on July 30, 1997 (the "Continued Hearing"). Capitalized terms
not otherwise defined herein shall have the meaning ascribed thereto in the
Application or the Stipulation (as hereinafter defined), as applicable. Based
upon the Application and the Stipulation Regarding Financing between Debtor and
BNY (which includes, by reference, the Pre-Petition Loan Documents) (the
"Stipulation"), both of which are incorporated herein and made a part of this
Order by this reference, other oral and written evidence presented to the Court,
other documents on file in this case, and other good cause appearing therefor,
this Court finds that:
<PAGE>
1. Notice of the Application and the Continued Hearing was appropriate in the
particular circumstances of this case and was made in accordance with the
requirements of Section 102(1) of the Bankruptcy Code and the Bankruptcy Rules.
2. On May 2, 1997, Debtor filed its petition for relief under Chapter 11 of
the Bankruptcy Code. Debtor continues to operate its business as a
debtor-in-possession under Sections 1107 and 1108 of the Bankruptcy Code.
3. Debtor does not have available sources of working capital and financing
needed to continue the operation of Debtor's business.
4. Debtor is unable pursuant to Sections 364(a) or (b) of the Bankruptcy Code
(or otherwise) to obtain unsecured credit allowable under Section 503(b)(1) of
the Bankruptcy Code as an administrative expense, and is unable to obtain any
secured financing other than that provided in the Stipulation.
5. BNY has indicated a willingness to lend money and extend credit to Debtor
and to permit Debtor to use BNY's Collateral, all in accordance with and subject
to the terms and conditions set forth in the Application and the Stipulation, as
modified by this Final Order.
6. Absent the financing set forth in the Application, Debtor's business will
suffer immediate and irreparable harm and not survive. Without available cash,
Debtor's ability to preserve the going-concern value of its assets will be
destroyed.
7. To continue its business operations in the ordinary course, Debtor is
required to continue to use its pre-petition assets, in substantially all of
which BNY holds a first priority lien and security interest.
8. The preservation of the going-concern value of Debtor is of the utmost
significance to Debtor's estate, and the interests of all creditors will be
better served by the continued operation of Debtor's business.
9. The Stipulation and the Pre-Petition Loan Documents incorporated therein
have been negotiated in good faith and at arm's length between Debtor and BNY,
and any credit extended and loans made to Debtor by BNY pursuant to the
Pre-Petition Loan Documents have been and shall be deemed to have been extended
in good faith, as that term is used in Section 364(e) of the Bankruptcy Code.
10. To provide BNY adequate protection from any loss, decrease, diminution or
decline in the value of the assets of Debtor and the property of the estate
caused or resulting from the use, sale or lease thereof by Debtor in accordance
with Section 363(e) of the Bankruptcy Code, or from the automatic stay imposed
by Section 362 of the
<PAGE>
Bankruptcy Code ("Collateral Shortfall"), BNY is entitled to adequate protection
under Sections 361 and 363(e) of the Bankruptcy Code in the form of a first
priority security interest in all assets of Debtor's estate as provided below.
11. The proposed financing is in the best interests of the estate and its
creditors.
Based on the foregoing findings and for other good cause, IT IS HEREBY
ORDERED THAT:
A. The Pre-Petition Obligations owing to BNY constitute valid, binding and
enforceable obligations owed to BNY by Debtor, and BNY's lien on and security
interest in the Pre-Petition Collateral is fully perfected and has a first
priority over all other interests or rights in and to such Pre-Petition
Collateral.
B. Debtor is hereby authorized to borrow during the course of this Chapter 11
case, in accordance with the terms set forth in the Application and in the
Stipulation, up to Twenty-Three Million Dollars ($23,000,000.00), including both
Pre-Petition Obligations and Post-Petition Obligations, at any one time to be
utilized by Debtor for its general operating expenses (including certain Chapter
11 expenses, as set forth in the Stipulation). The Stipulation is hereby
approved in its entirety except as set forth in this Order. BNY is hereby
granted the rights, priorities, liens and security interests set forth in the
Application and the Stipulation as modified by this Order, provided however,
that the rights, priorities, liens, and security interests granted pursuant to
this Order shall not affect any interests granted or property transferred to
third parties pre-petition, including interests granted or transferred to Cabell
Financial Company, Ltd., Gerard Blohorn, Palm Environmental Funding Corp, Allen,
Lang, Morrison & Curotto, the interests of US Fleet Leasing, USL Capital Fleet
Services, Inc. and Leasing Associates, Inc pursuant to pre-petition leases and
the vehicles and equipment subject to the leases, or the equitable subrogation
rights of the Debtor's sureties. All of the Post-Petition Obligations,
including such post-petition loans, advances and other indebtedness and expenses
of BNY made or incurred prior to this Court's approval of the Stipulation, which
may become owing by Debtor to BNY pursuant to the Stipulation, shall be secured
by a first and senior security interest in and lien upon substantially all
assets of Debtor, as more fully described and as limited below. The terms and
conditions of the Pre-Petition Loan Documents, as modified by the Stipulation,
shall continue in full force and effect with respect to the Pre-Petition
Obligations and the Pre-Petition Collateral.
C. Debtor is authorized and directed to comply with the terms and conditions
of the Stipulation. Debtor further is authorized and empowered from time to
time to borrow monies or obtain other financial accommodations from BNY in
accordance with the terms of the Pre-Petition Loan Documents, the Stipulation
and this Order. All
<PAGE>
Post-Petition Obligations are subject to the interest rate, terms of payment and
other terms and conditions provided for by the Pre-Petition Loan Documents as
modified by the Stipulation. Debtor shall use the money borrowed exclusively
for the operation of its business, including the making of various payments in
connection with the above-captioned bankruptcy case, as permitted herein. BNY
may, in its discretion, apply the proceeds of Pre-Petition Collateral and
Post-Petition Collateral, or any other amounts received by BNY in respect of the
Pre-Petition Obligations or Post-Petition Obligations, in such order or manner
as BNY deems appropriate, including first to the Pre-Petition Obligations until
such Pre-Petition Obligations are paid and satisfied in full.
D. To secure Debtor's Post-Petition Obligations, including those as provided
in this Order, and Debtor's Collateral Shortfall, Debtor is authorized, ordered
and directed to grant to BNY, and BNY is hereby provided, a continuing,
perfected first priority security interest and lien, effective from the date of
commencement of this Chapter 11 case, upon all of the Post-Petition Collateral.
BNY shall also have the highest administrative priority and a senior lien and
security interest as specified in Sections 364(c)(1) and (2) of the Bankruptcy
Code, and in Section 364(d)(1) of the Bankruptcy Code (only as Section 364(d)(1)
relates to Collateral in which BNY has a pre-petition security interest), above
all administrative expenses of the kind specified in Sections 503(b) and 507(b)
of the Bankruptcy Code, subject only to the provisions of Paragraph E below, and
above all other security interests, liens or claims, provided however, that the
rights, priorities, liens, and security interests granted pursuant to this Order
shall not affect any interests granted or property transferred to third parties
pre-petition, including interests granted or transferred to Cabell Financial
Company, Ltd., Gerard Blohorn, Palm Environmental Funding Corp, Allen, Lang,
Morrison & Curotto, the interests of US Fleet Leasing, USL Capital Fleet
Services, Inc. and Leasing Associates, Inc pursuant to pre-petition leases and
the vehicles and equipment subject to the leases, or the or the equitable
subrogation rights of the Debtor's sureties.
E. Subject only to the provisions of Paragraph E below, all loans, extensions
of credit and any other obligations which may from time to time hereafter be
owing by Debtor to BNY are hereby granted liens and priority under Sections
364(c)(1) and (2) of the Bankruptcy Code, and Section 364(d)(1) (only as Section
364(d)(1) relates to Collateral in which BNY has a pre-petition security
interest), over all liens, security interests or administrative expenses
included in this Chapter 11 case including those of the kind specified in
Section 503(b) or Section 507(b) of the Bankruptcy Code, except the liquidation
expenses of any Chapter 7 trustee, provided however, that the rights,
<PAGE>
priorities, liens, and security interests granted pursuant to this Order shall
not affect any interests granted or property transferred to third parties
pre-petition, including interests granted or transferred to Cabell Financial
Company, Ltd., Gerard Blohorn, Palm Environmental Funding Corp, Allen, Lang,
Morrison & Curotto, the interests of US Fleet Leasing, USL Capital Fleet
Services, Inc. and Leasing Associates, Inc pursuant to pre-petition leases or
the vehicles and equipment subject to the leases, or the equitable subrogation
rights of Debtor's sureties. No costs or expenses of administration which have
been or may be incurred in this case, in any conversion of this case pursuant to
Section 1112 of the Bankruptcy Code, or in any other superseding proceeding, and
no priority claims, except the liquidation expenses of any Chapter 7 trustee,
are or will be, prior to or on a parity with the claim of BNY against Debtor
arising out of the Post-Petition Obligations or Collateral Shortfall, or with
the security interests and liens of BNY in and upon the Collateral, and no such
costs and expenses of administration shall be imposed against BNY, its claims or
its Collateral. If BNY's lien and security interest are insufficient to
collateralize the Post-Petition Obligations and the Collateral Shortfall fully,
BNY's claim for such insufficiency shall be afforded priority over all other
claims, interests and creditors under Sections 503(b) and 507(b) of the
Bankruptcy Code.
F. Notwithstanding the foregoing grant of security and priority, and as
provided in the Stipulation, Debtor may pay the following (any such sums to be
paid only after notice and allowance by the Court when applicable) in accordance
with the Projections: (i) all reasonable and necessary business expenses of
Debtor incurred in the ordinary course of business from the Filing Date to the
date of any notice by BNY of an event of default (the "Termination Date"), (ii)
all statutory fees of the Bankruptcy Court and the United States Trustee
incurred on or before the Termination Date; (iii) all amounts payable under the
Independent Contractor Agreement between the Debtor and Stanford Springel
approved by the Court on June 23, 1997 (the "Independent Contractor Agreement")
and the incentive plan for Bradley Powell pursuant to a letter dated July 1,
1997 (the terms of which are subject to approval by the Court); and (iv) all
reasonable fees and costs (exclusive of any pre-petition retainers) up to an
aggregate amount of One Million Dollars ($1,000,000) through September 30, 1997,
which amount shall be allocated among the firms of Helsell Fetterman LLP,
Gibson, Dunn & Crutcher LLP, KPMG Peat Marwick, Shulkin Hutton Inc., P.S. Ernst
& Young, and special local counsel retained by the Debtor and approved by the
Bankruptcy Court, as the parties may agree or as the Bankruptcy Court may order,
commencing on the Filing Date and continuing until the Termination Date (with
the understanding that the amount set forth above applies only to the
<PAGE>
period beginning on the Filing Date and ending on September 30, 1997, that
overall professional fees are likely to exceed such amount, and that BNY is not
at this time agreeing that any amounts over One Million Dollars in which BNY has
an interest may be used to pay such professional fees); PROVIDED, HOWEVER, (a)
neither Debtor nor the Creditors' Committee may utilize any portion of the above
allocations to pay the fees and costs of its counsel or accountants in
investigating or commencing any action or other proceeding for the purpose of,
or which may result in, challenging the amount, allowability, unavoidability,
enforceability, validity, perfection or first priority of the Pre-Petition
Obligations or the Pre-Petition Collateral, or reducing or affecting the
obligation of the Debtor to pay the Pre-Petition Obligations, and (b) all
professional fees and expenses of Debtor or the Creditors' Committee (which
shall not include, in any event, fees and expenses payable under the Independent
Contractor Agreement) shall be subject to application, notice and allowance by
the Bankruptcy Court, to which BNY may object. Except as otherwise provided
herein or in the Stipulation, nothing herein is intended to nor shall require
BNY to make advances for such fees and expenses. All professionals shall report
accrued fees and costs to BNY as provided in the Stipulation.
G. (i) This Order shall be sufficient and conclusive evidence of the validity,
perfection and priority of BNY's security interests and liens upon the
Collateral without the necessity of filing or recording any financing
statements, notices or other documents which may otherwise be required under the
law of any jurisdiction or the taking of any other action to validate or perfect
the security interests and liens granted to BNY in this Order and the
Pre-Petition Loan Documents, as modified by the Stipulation, or to entitle BNY
to the priority granted herein. If, however, BNY shall, in its sole discretion,
elect for any reason to file or record any such financing statements, notices or
other documents, or to take any other such actions, Debtor shall execute or
cooperate with the same upon BNY's request and the filing or recording of such
financing statements, notices or documents or the taking of such other actions
shall be deemed to have been made or taken at the time and on the date of the
commencement of this Chapter 11 case.
(ii) The Debtor is authorized to incur and pay the Post-Petition
Obligations pursuant to the Stipulation.
(iii) The Debtor is authorized, ordered and directed to perform all acts,
and execute and comply with the terms of such further agreements, instruments
and documents which BNY may reasonably require and or which may be otherwise
deemed reasonable and necessary by BNY to effectuate the terms and conditions of
this Order.
<PAGE>
H. The Debtor is hereby authorized without further order of this Court to
reimburse BNY for all BNY Expenses, as defined in the Stipulation.
I. The signature of any officer of Debtor or any other person designated by
this Court as the party responsible for the operations of Debtor, whether by
letter to BNY or appearing on any documents, shall bind Debtor.
J. In the event of (i) failure of Debtor substantially to perform any of its
obligations as provided in this Order, (ii) the occurrence of any default under
the Pre-Petition Loan Documents as modified by the Stipulation, or (iii) the
failure of Debtor to perform any of its obligations under the Stipulation
(collectively, the "Default Events"), then and upon the occurrence of any of the
foregoing, and at all times thereafter, BNY is entitled to apply to this Court
for relief from the automatic stay pursuant to Section 362(d) of the Bankruptcy
Code to enforce its liens and security interests in any manner provided in the
Pre-Petition Loan Documents, as modified by the Stipulation, or applicable law
on shortened notice of no more than five (5) days from the date of such
application. Debtor shall comply with the terms of the Stipulation and shall
after such notice segregate and refrain from use of all cash. The only issue to
be considered any such hearing is whether a Default Event has occurred. Upon a
default, BNY may, without notice, cease making advances to Debtor and may
continue to collect and apply proceeds of its Collateral in the ordinary course
in accordance with the Stipulation.
K. The provisions of this Order and any actions taken pursuant hereto shall
survive entry of any order which may be entered converting this case from
Chapter 11 to Chapter 7, and the terms and provisions of this Order, as well as
the priorities in payment, liens and security interests granted pursuant to this
Order and the Pre-Petition Loan Documents, as modified by the Stipulation, shall
continue in this or any superseding case under the Bankruptcy Code or upon
dismissal of this case, and such priorities in payment, liens and security
interests shall maintain their priority as provided by this Order until all
Pre-Petition Obligations, Post-Petition Obligations and other indebtedness due
and owing to BNY by Debtor are indefeasibly satisfied and discharged.
L. The provisions of this Order shall be binding upon and inure to the benefit
of BNY, Debtor and each of their respective successors and assigns, including,
but not limited to, any trustee in bankruptcy hereinafter appointed as a
representative of Debtor's estate, whether under Chapter 11 or Chapter 7 of the
Bankruptcy Code, or to Debtor's successor upon dismissal of this case, provided
that the administrative priority claims, if any, of BNY shall not in any event
"prime" the liquidation expenses of any Chapter 7 trustee.
<PAGE>
M. Pursuant to Section 364(e) of the Bankruptcy Code, if any or all of the
provisions of this Order are hereinafter modified or vacated by subsequent order
of this or any Court, then, notwithstanding such modification or vacating, any
advances of funds made pursuant to this Order by BNY, and the priority of any
and all liens and security interests granted herein, prior to such modification
or vacating, to or for the benefit of BNY shall be governed in all respects by
the original provisions of this Order.
N. If any provision of this Order is hereafter modified, vacated, or stayed by
subsequent Order of this or any other Court for any reason, including but not
limited to objections of creditors, such modification, vacating, or stay shall
not affect the validity of any indebtedness arising out of the Obligations
incurred pursuant to the Pre-Petition Loan Documents as modified by the
Stipulation and this Order, or the validity, enforceability, or priority of the
liens and security interests authorized by this Order with respect to any such
Obligations, all of which shall be governed in all respects by the original
provisions of this Order, and BNY shall be entitled to all of the rights,
privileges and benefits, including the liens and security interest and
priorities granted herein, with respect to the Obligations.
DATED this 30th day of July 1997.
---------- --------------
Samuel J. Steiner
-----------------------------------
Honorable Samuel J. Steiner
United States Bankruptcy Judge
Presented by:
HELSELL FETTERMAN LLP
By /s/ Ragan L. Powers
----------------------------------------
Ragan L. Powers, WSBA #11935
Attorneys for Debtor and Debtor-in-Possession
GRAHAM & JAMES LLP/RIDDELL WILLIAMS P.S.
By /s/ Bradford Anderson
----------------------------------------
Bradford Anderson, WSBA #15213
Attorneys for BNY Financial Corporation
<PAGE>
SHULKIN HUTTON
By /s/ J. Todd Tracy
----------------------------------------
J. Todd Tracy, WSBA #17342
Attorneys for the Official Committee for
Unsecured Creditors
<PAGE>
EXHIBIT 99.1
FROM: OMEGA ENVIRONMENTAL, INC.
19805 NORTH CREEK PARKWAY
BOTHELL, WA 98011
MWW/STRATEGIC COMMUNICATIONS, INC.
PUBLIC RELATIONS - TEL: (201) 507-9500
CONTACT: ROBERT SWADOSH ([email protected])
RICHARD TAUBERMAN ([email protected])
- --------------------------------------------------------------------------------
FOR IMMEDIATE RELEASE
OMEGA ENVIRONMENTAL ANNOUNCEMENT
BOTHELL, WA September 3, 1997 - Omega Environmental, Inc. (Nasdaq: OMGQE),
operating under the protection of Chapter 11 of the United States Bankruptcy
Code as a Debtor-in-Possession, announced today that the Nasdaq Stock Market,
Inc. has deleted the Company's common stock from the Nasdaq National Market,
effective at the close of business September 3, 1997, due to its inability to
file its Form 10-K on a timely basis. The failure of the Company's secured
lender and accounting firm to reach agreement on conditions to finance the
conduct of an audit for the fiscal year-end March 31, 1997 has led to the
inability of the Company to file its annual report on Form 10-K for such fiscal
year. The Company is not seeking a review of this decision.
Omega's shares may be quoted in the National Daily Quotation sheets, which
are commonly referred to as the "pink sheets." There can be no assurance that
the shares will be traded on any market.
Omega Environmental is a national provided of environmental consulting,
remediation, maintenance and distribution services to the fueling facility
industry.
<PAGE>
EXHIBIT 99.2
OMEGA ENVIRONMENTAL, INC.
DEBTOR IN POSESSION CASE #97-06084
COMPARATIVE BALANCE SHEET INFORMATION
<TABLE>
<CAPTION>
(unaudited) (unaudited) (unaudited) (unaudited)
June 30, 1997 May 31, 1997 June 30, 1997 May 31, 1997
ESD ESD Change PSD PSD Change
----------------------------------------- ---------------------------------------
<S> <C> <C> <C> <C> <C> <C>
CURRENT ASSETS
Cash 21,768 3,020 18,748 91,797 15,489 76,308
Restricted cash held in escrow 2,723,450 2,759,820 (36,370) - - -
Accounts receivable
A/R--trade 11,096,417 12,109,488 (1,013,071) 2,755,800 2,606,177 149,623
A/R--interco 136,383 169,461 (33,078) 164,764 104,547 60,217
A/R--employees 8,512 6,274 2,238 16,824 14,274 2,550
A/R--misc. 808,255 798,258 9,997 - - -
Allowance for doubtful accounts (1,698,379) (1,712,626) 14,247 (341,305) (231,738) (109,567)
----------------------------------------- ---------------------------------------
Accounts receivable, net 10,351,188 11,370,855 (1,019,667) 2,596,083 2,493,260 102,823
----------------------------------------- ---------------------------------------
Costs and earnings in excess of billings 7,939,657 8,549,864 (610,207) 628 - 628
Prepaid expenses 3,081 (28,981) 32,062 (7,829) (28,558) 20,729
Inventory - - - 3,463,984 3,390,423 73,561
Inventory reserve - - - (918,000) (518,000) (400,000)
----------------------------------------- ---------------------------------------
Inventory, net - - - 2,545,984 2,872,423 (326,439)
----------------------------------------- ---------------------------------------
Other current assets - - - - - -
----------------------------------------- ---------------------------------------
TOTAL CURRENT ASSETS 21,039,144 22,654,578 (1,615,434) 5,226,663 5,352,614 (125,951)
----------------------------------------- ---------------------------------------
PROPERTY AND EQUIPMENT
Field equipment 2,021,451 1,814,255 207,196 225,845 225,845 -
Automotive equipment 832,814 690,019 142,795 491,994 491,994 -
Office furniture and equipment 710,551 699,063 11,488 580,279 578,991 1,288
Equipment under capital leases - 53,096 (53,096) - - -
Leasehold improvements 90,823 90,823 - 37,993 37,993 -
----------------------------------------- ---------------------------------------
TOTAL PROPERTY & EQUIP., AT COST 3,655,639 3,347,256 308,383 1,336,111 1,334,823 1,288
Accum. Depreciation (1,857,565) (1,666,826) (190,739) (612,881) (590,768) (22,113)
----------------------------------------- ---------------------------------------
TOTAL PROPERTY & EQUIP., NET 1,798,074 1,680,430 117,644 723,230 744,055 (20,825)
----------------------------------------- ---------------------------------------
Long-term receivable - Other (Texas) 814,814 814,814 - - -
Other Assets 161,178 158,578 2,600 - - -
Investment & Intercompany in Subsidiaires - - - - - -
----------------------------------------- ---------------------------------------
TOTAL ASSETS 23,813,210 24,493,586 (680,376) 5,949,893 6,096,669 (146,776)
----------------------------------------- ---------------------------------------
----------------------------------------- ---------------------------------------
POST PETITION CURRENT LIABILITIES
Accounts payable 93,565 94,351 (786) 80,836 74,682 6,154
Line of Credit - - - - - -
Accrued expenses, excluding bankruptcy costs 619,554 875,238 (255,684) 795,864 877,136 (81,272)
Accrued bankruptcy costs - - - - - -
Estimated claims secured by cash held in escrow 2,652,269 2,689,496 (37,227) - - -
Billings in excess of costs & earnings - - - - - -
Current portion of long term debt - - - - - -
Intercompany - BNYFC (327,714) (1,143,947) 816,233 564,555 255,643 308,912
Intercompany payables 443,111 243,114 199,997 810,686 677,063 133,623
----------------------------------------- ---------------------------------------
TOTAL POST PETITION CURRENT LIABILITIES 3,480,785 2,758,252 722,533 2,251,941 1,884,524 367,417
Intercompany - BNYFC 7,841,012 8,627,330 (786,318) 4,402,251 4,313,582 88,669
Intercompany Notes Payable 8,741,768 8,741,768 - - - -
Pre Petition Liabilities 2,512,859 2,290,369 222,490 969,989 969,817 172
Pre Petition Estimated Construction Claims - - - - - -
----------------------------------------- ---------------------------------------
TOTAL LIABILITIES 22,576,424 22,417,719 158,705 7,624,181 7,167,923 456,258
----------------------------------------- ---------------------------------------
SHAREHOLDERS' EQUITY
Common stock at par - - - - - -
Additional paid in capital 17,791,864 17,791,864 - 14,113,361 14,113,361 -
Treasury Stock A-P-I-C - - - - - -
Retained earnings - prior (15,563,779) (15,563,779) - (14,767,222) (14,767,222) -
Y-T-D net income pre petition (26,496) (26,496) - (247,894) (247,894) -
Y-T-D net income post petition (964,803) (125,722) (839,081) (772,533) (169,499) (603,034)
----------------------------------------- ---------------------------------------
TOTAL SHAREHOLDERS' EQUITY 1,236,786 2,075,867 (839,081) (1,674,288) (1,071,254) (603,034)
----------------------------------------- ---------------------------------------
TOTAL LIABILITIES & SHAREHOLDERS' EQUITY 23,813,210 24,493,586 (680,376) 5,949,893 6,096,669 (146,776)
----------------------------------------- ---------------------------------------
----------------------------------------- ---------------------------------------
</TABLE>
See accompanying note to financial statement information
<PAGE>
OMEGA ENVIRONMENTAL, INC.
DEBTOR IN POSESSION CASE #97-06084
COMPARATIVE BALANCE SHEET INFORMATION
<TABLE>
<CAPTION>
(unaudited) (unaudited)
(unaudited) (unaudited) June 30, 1997 May 31, 1997
June 30, 1997 May 31, 1997 Continuing Continuing
Corporate Corporate Change Operations Operations Change
----------------------------------------- ---------------------------------------
<S> <C> <C> <C> <C> <C> <C>
CURRENT ASSETS
Cash 211,843 1,589,081 (1,377,238) 325,408 1,607,590 (1,282,182)
Restricted cash held in escrow - - - 2,723,450 2,759,820 (36,370)
Accounts receivable
A/R--trade 236,846 103,697 133,149 14,089,063 14,819,362 (730,299)
A/R--interco 519,588 531,626 (12,038) 820,735 805,634 15,101
A/R--employees - - - 25,336 20,548 4,788
A/R--misc. 1,168,737 1,152,035 16,702 1,976,992 1,950,293 26,699
Allowance for doubtful accounts (1,202,957) (1,164,275) (38,682) (3,242,641) (3,108,639) (134,002)
----------------------------------------- ---------------------------------------
Accounts receivable, net 722,214 623,083 99,131 13,669,485 14,487,198 (817,713)
----------------------------------------- ---------------------------------------
Costs and earnings in excess of billings - - - 7,940,285 8,549,864 (609,579)
Prepaid expenses 484,381 65,427 418,954 479,633 7,888 471,745
Inventory - - - 3,463,984 3,390,423 73,561
Inventory reserve - - - (918,000) (518,000) (400,000)
----------------------------------------- ---------------------------------------
Inventory, net - - - 2,545,984 2,872,423 (326,439)
----------------------------------------- ---------------------------------------
Other current assets 37,860 38,866 (1,006) 37,860 38,866 (1,006)
----------------------------------------- ---------------------------------------
TOTAL CURRENT ASSETS 1,456,298 2,316,457 (860,159) 27,722,105 30,323,649 (2,601,544)
----------------------------------------- ---------------------------------------
PROPERTY AND EQUIPMENT
Field equipment - - - 2,247,296 2,040,100 207,196
Automotive equipment - - - 1,324,808 1,182,013 142,795
Office furniture and equipment 401,225 401,225 - 1,692,055 1,679,279 12,776
Equipment under capital leases - - - - 53,096 (53,096)
Leasehold improvements 21,780 21,780 - 150,596 150,596 -
----------------------------------------- ---------------------------------------
TOTAL PROPERTY & EQUIP., AT COST 423,005 423,005 - 5,414,755 5,105,084 309,671
Accum. Depreciation (338,527) (334,587) (3,940) (2,808,973) (2,592,181) (216,792)
----------------------------------------- ---------------------------------------
TOTAL PROPERTY & EQUIP., NET 84,478 88,418 (3,940) 2,605,782 2,512,903 92,879
----------------------------------------- ---------------------------------------
Long-term receivable - Other (Texas) - 814,814 - 814,814
Other Assets 701,591 693,096 8,495 862,769 851,674 11,095
Investment & Intercompany in Subsidiaires 84,534,918 85,005,346 (470,428) 84,534,918 85,005,346 (470,428)
----------------------------------------- ---------------------------------------
TOTAL ASSETS 86,777,285 88,103,317 (1,326,032) 116,540,388 118,693,572 (2,153,184)
----------------------------------------- ---------------------------------------
----------------------------------------- ---------------------------------------
POST PETITION CURRENT LIABILITIES
Accounts payable 64,774 55,540 9,234 239,175 224,573 14,602
Line of Credit 19,155,677 19,004,055 151,622 19,155,677 19,004,055 151,622
Accrued expenses, excluding bankruptcy costs 830,325 524,385 305,940 2,245,743 2,276,759 (31,016)
Accrued bankruptcy costs 577,864 281,033 296,831 577,864 281,033 296,831
Estimated claims secured by cash held in escrow - - - 2,652,269 2,689,496 (37,227)
Billings in excess of costs & earnings - - - - - -
Current portion of long term debt 770,177 975,575 (205,398) 770,177 975,575 (205,398)
Intercompany - BNYFC - - - 236,841 (888,304) 1,125,145
Intercompany payables 6,005 14,906 (8,901) 1,259,802 935,083 324,719
----------------------------------------- ---------------------------------------
TOTAL POST PETITION CURRENT LIABILITIES 21,404,822 20,855,494 549,328 27,137,548 25,498,270 1,639,278
Intercompany - BNYFC (22,488,855) (21,373,904) (1,114,951) (10,245,592) (8,432,992) (1,812,600)
Intercompany Notes Payable - 8,741,768 8,741,768 -
Pre Petition Liabilities 2,578,223 2,591,055 (12,832) 6,061,071 5,851,241 209,830
Pre Petition Estimated Construction Claims - - - -
----------------------------------------- ---------------------------------------
TOTAL LIABILITIES 1,494,190 2,072,645 (578,455) 31,694,795 31,658,287 36,508
----------------------------------------- ---------------------------------------
SHAREHOLDERS' EQUITY
Common stock at par 121,289 121,289 - 121,289 121,289 -
Additional paid in capital 133,347,234 133,347,234 - 165,252,459 165,252,459 -
Treasury Stock A-P-I-C (562,506) (562,506) - (562,506) (562,506) -
Retained earnings - prior (45,592,619) (45,592,619) - (75,923,620) (75,923,620) -
Y-T-D net income pre petition (895,498) (895,498) - (1,169,888) (1,169,888) -
Y-T-D net income post petition (1,134,805) (387,228) (747,577) (2,872,141) (682,449) (2,189,692)
----------------------------------------- ---------------------------------------
TOTAL SHAREHOLDERS' EQUITY 85,283,095 86,030,672 (747,577) 84,845,593 87,035,285 (2,189,692)
----------------------------------------- ---------------------------------------
TOTAL LIABILITIES & SHAREHOLDERS' EQUITY 86,777,285 88,103,317 (1,326,032) 116,540,388 118,693,572 (2,153,184)
----------------------------------------- ---------------------------------------
----------------------------------------- ---------------------------------------
</TABLE>
See accompanying note to financial statement information
<PAGE>
OMEGA ENVIRONMENTAL, INC.
DEBTOR IN POSESSION CASE #97-06084
COMPARATIVE BALANCE SHEET INFORMATION
<TABLE>
<CAPTION>
(unaudited) (unaudited) (unaudited) (unaudited)
June 30, 1997 May 31, 1997 June 30, 1997 May 31, 1997
Discontinued Discontinued Combined Combined
Operations Operations Change Final Final Change
----------------------------------------- ---------------------------------------
<S> <C> <C> <C> <C> <C> <C>
CURRENT ASSETS
Cash 139,384 57,264 82,120 464,792 1,664,854 (1,200,062)
Restricted cash held in escrow 67,902 67,718 184 2,791,352 2,827,538 (36,186)
Accounts receivable
A/R--trade 12,852,551 12,639,449 213,102 26,941,614 27,458,811 (517,197)
A/R--interco 2,637,461 2,028,547 608,914 - - -
A/R--employees 36,268 51,408 (15,140) 61,604 71,956 (10,352)
A/R--misc. 207,298 212,643 (5,345) 2,184,290 2,162,936 21,354
Allowance for doubtful accounts (2,841,132) (2,752,997) (88,135) (6,083,773) (5,861,636) (222,137)
----------------------------------------- ---------------------------------------
Accounts receivable, net 12,892,446 12,179,050 713,396 23,103,735 23,832,067 (728,332)
----------------------------------------- ---------------------------------------
Costs and earnings in excess of billings 852,722 1,583,620 (730,898) 8,793,007 10,133,484 (1,340,477)
Prepaid expenses (44,829) 14,188 (59,017) 434,804 22,076 412,728
Inventory 4,154,640 4,428,604 (273,964) 7,618,624 7,819,027 (200,403)
Inventory reserve (1,216,762) (1,317,716) 100,954 (2,134,762) (1,835,716) (299,046)
----------------------------------------- ---------------------------------------
Inventory, net 2,937,878 3,110,888 (173,010) 5,483,862 5,983,311 (499,449)
----------------------------------------- ---------------------------------------
Other current assets 109,307 110,946 (1,639) 147,167 149,812 (2,645)
----------------------------------------- ---------------------------------------
TOTAL CURRENT ASSETS 16,954,810 17,123,674 (168,864) 41,218,719 44,613,142 (3,394,423)
----------------------------------------- ---------------------------------------
PROPERTY AND EQUIPMENT
Field equipment 3,451,892 3,549,128 (97,236) 5,699,188 5,589,228 109,960
Automotive equipment 2,671,270 2,795,679 (124,409) 3,996,078 3,977,692 18,386
Office furniture and equipment 1,424,598 1,431,436 (6,838) 3,116,653 3,110,715 5,938
Equipment under capital leases - 19,872 (19,872) - 72,968 (72,968)
Leasehold improvements 660,360 655,439 4,921 810,956 806,035 4,921
----------------------------------------- ---------------------------------------
TOTAL PROPERTY & EQUIP., AT COST 8,208,120 8,451,554 (243,434) 13,622,875 13,556,638 66,237
Accum. Depreciation (4,106,829) (4,077,600) (29,229) (6,915,802) (6,669,781) (246,021)
----------------------------------------- ---------------------------------------
TOTAL PROPERTY & EQUIP., NET 4,101,291 4,373,954 (272,663) 6,707,073 6,886,857 (179,784)
----------------------------------------- ---------------------------------------
Long-term receivable - Other (Texas) - - - 814,814 - 814,814
Other Assets 43,384 37,639 5,745 906,153 901,648 4,505
Investment & Intercompany in Subsidiaires - - 1,705,583 1,929,863 (224,280)
----------------------------------------- ---------------------------------------
TOTAL ASSETS 21,099,485 21,535,267 (435,782) 51,352,342 54,331,510 (2,979,168)
----------------------------------------- ---------------------------------------
----------------------------------------- ---------------------------------------
POST PETITION CURRENT LIABILITIES
Accounts payable 169,004 261,191 (92,187) 408,179 485,764 (77,585)
Line of Credit - - - 19,155,677 19,004,055 151,622
Accrued expenses, excluding bankruptcy costs 1,055,259 1,150,318 (95,059) 3,301,002 3,427,077 (126,075)
Accrued bankruptcy costs - - - 577,864 281,033 296,831
Estimated claims secured by cash held in escrow - - - 2,652,269 2,689,496 (37,227)
Billings in excess of costs & earnings 158,941 640,681 (481,740) 158,941 640,681 (481,740)
Current portion of long term debt 19,141 23,910 (4,769) 789,318 999,485 (210,167)
Intercompany - BNYFC (987,144) (1,315,768) 328,624 - - -
Intercompany payables 1,618,996 1,321,032 297,964 - - -
----------------------------------------- ---------------------------------------
TOTAL POST PETITION CURRENT LIABILITIES 2,034,197 2,081,364 (47,167) 27,043,250 27,527,591 (484,341)
Intercompany - BNYFC 10,744,346 10,617,996 126,350 - - -
Intercompany Notes Payable 2,535,455 2,535,455 - - - -
Pre Petition Liabilities 11,969,230 11,500,480 468,750 18,030,301 17,351,721 678,580
Pre Petition Estimated Construction Claims 3,000,000 1,025,000 1,975,000 3,000,000 1,025,000 1,975,000
----------------------------------------- ---------------------------------------
TOTAL LIABILITIES 30,283,228 27,760,295 2,522,933 48,073,551 45,904,312 2,169,239
----------------------------------------- ---------------------------------------
SHAREHOLDERS' EQUITY
Common stock at par 2,082,948 2,082,948 - 121,289 121,289 -
Additional paid in capital 25,370,632 25,370,632 - 124,480,375 124,480,375 -
Treasury Stock A-P-I-C - - - (562,506) (562,506) -
Retained earnings - prior (32,353,339) (32,183,904) (169,435) (111,988,497) (111,819,062) (169,435)
Y-T-D net income pre petition (676,048) (676,048) - (1,845,936) (1,845,936) -
Y-T-D net income post petition (3,607,936) (818,656) (2,789,280) (6,925,934) (1,946,962) (4,978,972)
----------------------------------------- ---------------------------------------
TOTAL SHAREHOLDERS' EQUITY (9,183,743) (6,225,028) (2,958,715) 3,278,791 8,427,198 (5,148,407)
----------------------------------------- ---------------------------------------
TOTAL LIABILITIES & SHAREHOLDERS' EQUITY 21,099,485 21,535,267 (435,782) 51,352,342 54,331,510 (2,979,168)
----------------------------------------- ---------------------------------------
----------------------------------------- ---------------------------------------
</TABLE>
See accompanying note to financial statement information
<PAGE>
OMEGA ENVIRONMENTAL, INC.
DEBTOR IN POSSESSION CASE #97-06084
COMPARATIVE STATEMENT OF
OPERATIONS INFORMATION
<TABLE>
<CAPTION>
(unaudited) (unaudited) (unaudited) (unaudited)
Month Ended Month Ended Month Ended Month Ended
June 30, 1997 May 31, 1997 June 30, 1997 May 31, 1997
ESD ESD Change PSD PSD Change
----------------------------------------- ---------------------------------------
<S> <C> <C> <C> <C> <C> <C>
Sales 1,112,140 1,176,182 (64,042) 857,218 922,460 (65,242)
Cost of Sales 763,950 667,009 96,941 799,870 785,356 14,514
----------------------------------------- ---------------------------------------
Gross Profit 348,190 509,173 (160,983) 57,348 137,104 (79,756)
Selling, General, and Administrative 347,808 386,922 (39,114) 215,836 262,479 (46,643)
----------------------------------------- ---------------------------------------
Income From Operations 382 122,251 (121,869) (158,488) (125,375) (33,113)
Other Income(Expense):
I/C Interest Income (Expense) (79,951) (87,441) 7,490 (44,546) (44,124) (422)
Interest Expense (1,085) (62,284) 61,199 - - -
Interest Income - - - - - -
Gain (loss) on Asset Disposition 2,123 - 2,123 - - -
Amortization / Write-off of Goodwill - - - - - -
Other Expense (760,550) (95,961) (664,589) (400,000) - (400,000)
Other Income - (2,287) 2,287 - - -
----------------------------------------- ---------------------------------------
Total Other Income (Expense) (839,463) (247,973) (591,490) (444,546) (44,124) (400,422)
Net Income (Loss) Before Bankruptcy
----------------------------------------- ---------------------------------------
Administrative Expenses (839,081) (125,722) (713,359) (603,034) (169,499) (433,535)
Bankruptcy Administrative Expenses - -
----------------------------------------- ---------------------------------------
Net Income (Loss) (839,081) (125,722) (713,359) (603,034) (169,499) (433,535)
----------------------------------------- ---------------------------------------
----------------------------------------- ---------------------------------------
</TABLE>
See accompanying note to financial statement information
<PAGE>
Omega Environmental, Inc.
Debtor In Possession Case #97-06084
Comparative Statement of
Operations Information
<TABLE>
<CAPTION>
(unaudited) (unaudited)
(unaudited) (unaudited) Month Ended Month Ended
Month Ended Month Ended June 30, 1997 May 31, 1997
June 30, 1997 May 31, 1997 Continuing Continuing
Corporate Corporate Change Operations Operations Change
----------------------------------------- ---------------------------------------
<S> <C> <C> <C> <C> <C> <C>
Sales - 1,969,358 2,098,642 (129,284)
Cost of Sales 6,005 6,005 1,569,825 1,452,365 117,460
----------------------------------------- ---------------------------------------
Gross Profit (6,005) - (6,005) 399,533 646,277 (246,744)
Selling, General, and Administrative 303,588 415,697 (112,109) 867,232 1,065,098 (197,866)
----------------------------------------- ----------------------------------------
Income From Operations (309,593) (415,697) 106,104 (467,699) (418,821) (48,878)
Other Income(Expense):
I/C Interest Income (Expense) 254,896 253,710 1,186 130,399 122,145 8,254
Interest Expense (241,982) (152,285) (89,697) (243,067) (214,569) (28,498)
Interest Income 9,924 4,203 5,721 9,924 4,203 5,721
Gain (loss) on Asset Disposition - - - 2,123 - 2,123
Amortization / Write-off of Goodwill - - - - - -
Other Expense (163,991) - (163,991) (1,324,541) (95,961) (1,228,580)
Other Income - 70 (70) - (2,217) 2,217
----------------------------------------- ---------------------------------------
Total Other Income (Expense) (141,153) 105,698 (246,851) (1,425,162) (186,399) (1,238,763)
Net Income (Loss) Before Bankruptcy
----------------------------------------- ---------------------------------------
Administrative Expenses (450,746) (309,999) (140,747) (1,892,861) (605,220) (1,287,641)
Bankruptcy Administrative Expenses (296,831) (281,033) (15,798) (296,831) (281,033) (15,798)
----------------------------------------- ---------------------------------------
Net Income (Loss) (747,577) (591,032) (156,545) (2,189,692) (886,253) (1,303,439)
----------------------------------------- ---------------------------------------
----------------------------------------- ---------------------------------------
</TABLE>
See accompanying note to financial statement information
<PAGE>
OMEGA ENVIRONMENTAL, INC.
DEBTOR IN POSSESSION CASE #97-06084
COMPARATIVE STATEMENT OF
OPERATIONS INFORMATION
<TABLE>
<CAPTION>
(unaudited) (unaudited) (unaudited) (unaudited)
Month Ended Month Ended Month Ended Month Ended
June 30, 1997 May 31, 1997 June 30, 1997 May 31, 1997
Discontinuing Discontinuing Combined Combined
Operations Operations Change Final Final Change
----------------------------------------- ---------------------------------------
<S> <C> <C> <C> <C> <C> <C>
Sales 1,198,707 1,326,260 (127,553) 2,155,065 2,819,533 (664,468)
Cost of Sales 1,280,618 1,322,090 (41,472) 1,837,443 2,169,086 (331,643)
----------------------------------------- ---------------------------------------
Gross Profit (81,911) 4,170 (86,081) 317,622 650,447 (332,825)
Selling, General, and Administrative 602,834 793,139 (190,305) 1,470,066 1,858,237 (388,171)
----------------------------------------- ---------------------------------------
Income From Operations (684,745) (788,969) 104,224 (1,152,444) (1,207,790) 55,346
Other Income(Expense):
I/C Interest Income (Expense) (130,399) (122,145) (8,254) - - -
Interest Expense (902) (3) (899) (243,969) (214,572) (29,397)
Interest Income 188 272 (84) 10,112 4,475 5,637
Gain (loss) on Asset Disposition (2,459) - (2,459) (336) - (336)
Amortization / Write-off of Goodwill - - - - - -
Other Expense (1,977,125) (150,891) (1,826,234) (3,301,666) (246,852) (3,054,814)
Other Income 6,162 1,025 5,137 6,162 (1,192) 7,354
----------------------------------------- ---------------------------------------
Total Other Income (Expense) (2,104,535) (271,742) (1,832,793) (3,529,697) (458,141) (3,071,556)
Net Income (Loss) Before Bankruptcy
----------------------------------------- ---------------------------------------
Administrative Expenses (2,789,280) (1,060,711) (1,728,569) (4,682,141) (1,665,931) (3,016,210)
Bankruptcy Administrative Expenses - - - (296,831) (281,033) (15,798)
----------------------------------------- ---------------------------------------
Net Income (Loss) (2,789,280) (1,060,711) (1,728,569) (4,978,972) (1,946,964) (3,032,008)
----------------------------------------- ---------------------------------------
----------------------------------------- ---------------------------------------
</TABLE>
See accompanying note to financial statement information
<PAGE>
OMEGA ENVIRONMENTAL, INC.
DEBTOR IN POSSESSION CASE # 97 - 06084
STATEMENT OF CASH FLOWS INFORMATION
<TABLE>
<CAPTION>
(unaudited) (unaudited)
Month Ended Month Ended
June 30, 1997 May 31, 1997 Change
-------------- ------------- ------------
<S> <C> <C> <C>
Cash flows from operating activities:
Net income (loss) $ (4,978,974) $ (1,946,964) $(3,032,010)
Adjustments to reconcile net income (loss) to net cash
used in operating activities:
Depreciation 179,784 181,725 (1,941)
Equity in Losses in Subsidiaries (169,432) (138,082) (31,350)
Change in certain assets & liabilities:
(Increase) decrease in:
Receivables 257,354 2,474,466 (2,217,112)
Costs in excess of billings 996,641 157,378 839,263
Inventory 499,449 562,927 (63,478)
Prepaids & other assets (410,083) 397,179 (807,262)
Increase (decrease) in:
Accounts payable (77,585) 485,764 (563,349)
Accrued expenses 172,997 (449,262) 622,259
Billings in excess of costs (481,740) (678,817) 197,077
Other net changes in assets and liabilities 218,733 336,539 (117,806)
------------- ------------- ------------
Total adjustments 1,186,118 3,329,817 (2,143,699)
------------- ------------- ------------
Net cash provided by (used in) operating activities (3,792,856) 1,382,853 (5,175,709)
Cash flows from financing and other activities:
Net proceeds (repayments) from revolver credit loan 151,622 (51,416) 203,038
Repayment of long term obligations (143,658) (165,688) 22,030
Increase in pre petition liabilities 2,584,830 0 2,584,830
------------- ------------- ------------
Net cash provided by (used in) financing activities 2,592,794 (217,104) 2,809,898
------------- ------------- ------------
Net increase (decrease) in cash (1,200,062) 1,165,749 (2,365,811)
CASH AT BEGINNING OF PERIOD 1,664,854 499,105 1,165,749
------------- ------------- ------------
CASH AT END OF PERIOD $ 464,792 $ 1,664,854 $(1,200,062)
------------- ------------- ------------
------------- ------------- ------------
</TABLE>
See accompanying note to financial statement information
<PAGE>
EXHIBIT 99.2
Omega Environmental, Inc.
Debtor in Possession Case # 97-06084
June 30, 1997 and May 31, 1997 Financial Reporting Information
Note to Financial Statement Information
The financial statement information for June and May 1997 is unaudited and does
not comply with generally accepted accounting principles. Additionally,
significant estimates were used in the preparation of this financial statement
information and actual results may vary significantly from these estimates.
