<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 30, 1997
------------------------
OMEGA ENVIRONMENTAL, INC.
(EXACT NAME OF REGISTRANT AS SPECIFIED IN ITS CHARTER)
Commission File Number 0-20267
<TABLE>
<CAPTION>
<S><C>
DELAWARE 91-1499751
(STATE OR OTHER JURISDICTION OF INCORPORATION OR ORGANIZATION) (I.R.S. EMPLOYER IDENTIFICATION NO.)
</TABLE>
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
Since May 2, 1997, Registrant is operating under the protection of the
United States Bankruptcy Code as a debtor-in-possession.
ITEM 5. OTHER EVENTS
UNAUDITED FINANCIAL STATEMENT INFORMATION
On September 30, 1997, the Registrant filed unaudited financial
statement information as of and for each of the months ended August
31, 1997 and July 31, 1997 with related notes with the United States
Bankruptcy Court. Attached as an exhibit is the balance sheet
information, statement of operations information, statement of cash
flows information and related notes to financial statement information
which was included in the bankruptcy filing referred to above.
ITEM 7. FINANCIAL STATEMENTS AND EXHIBITS
(c) EXHIBITS
99.1 Unaudited Comparative Balance Sheet Information, Comparative
Statement of Operations Information and Comparative Statement of
Cash Flow Information as of and for each of the months ended
August 31, 1997 and July 31, 1997 with related Notes to Financial
Statement Information.
<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 30, 1997
/s/ Bradley S. Powell
---------------------------
Bradley S. Powell
Vice President/Corporate Controller
<PAGE>
OMEGA ENVIRONMENTAL, INC. EXHIBIT 99.1
DEBTOR IN POSESSION CASE #97-06084
COMPARATIVE BALANCE SHEET INFORMATION
<TABLE>
<CAPTION>
(UNAUDITED) (UNAUDITED) (UNAUDITED) (UNAUDITED)
AUGUST 31, 1997 JULY 31, 1997 AUGUST 31, 1997 JULY 31, 1997
ESD ESD CHANGE PSD PSD CHANGE
----------------------------------------------------------------------------------
----------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
CURRENT ASSETS
Cash 23,978 152,230 (128,252) - 303,247 (303,247)
Restricted cash held in escrow 2,596,886 2,723,450 (126,564) - - -
Accounts receivable
A/R--trade 10,841,432 10,756,387 85,045 3,560,813 3,295,174 265,639
A/R--interco 37,224 48,972 (11,748) 170,775 101,835 68,940
A/R--employees 7,791 8,987 (1,196) 20,726 17,775 2,951
A/R--supplemental 871,302 782,662 88,640 -
A/R--misc. 27,364 16,367 10,997 - -
Allowance for doubtful accounts (1,688,893) (1,552,238) (136,655) (195,462) (276,667) 81,205
----------------------------------------------------------------------------------
Accounts receivable, net 10,096,220 10,061,137 35,083 3,556,852 3,138,117 418,735
----------------------------------------------------------------------------------
Costs and earnings in excess of billings 8,123,970 8,633,546 (509,576) - - -
Prepaid expenses 56,127 93,819 (37,692) 139,161 99,267 39,894
Inventory 40,575 24,616 15,959 3,302,454 3,307,273 (4,819)
Inventory reserve - - - (890,385) (890,385) -
----------------------------------------------------------------------------------
Inventory, net 40,575 24,616 15,959 2,412,069 2,416,888 (4,819)
----------------------------------------------------------------------------------
Other current assets - - - - - -
----------------------------------------------------------------------------------
TOTAL CURRENT ASSETS 20,937,756 21,688,798 (751,042) 6,108,082 5,957,519 150,563
----------------------------------------------------------------------------------
PROPERTY AND EQUIPMENT
Field equipment 2,093,581 2,031,097 62,484 237,825 234,990 2,835
Automotive equipment 895,569 832,814 62,755 620,425 603,459 16,966
Office furniture and equipment 788,013 760,564 27,449 857,925 599,547 258,378
Equipment under capital leases - - - -
Leasehold improvements 90,823 90,823 - 37,993 37,993 -
----------------------------------------------------------------------------------
TOTAL PROPERTY & EQUIP., AT COST 3,867,986 3,715,298 152,688 1,754,168 1,475,989 278,179
Accum. Depreciation (2,068,992) (1,940,006) (128,986) (856,749) (708,274) (148,475)
----------------------------------------------------------------------------------
TOTAL PROPERTY & EQUIP., NET 1,798,994 1,775,292 23,702 897,419 767,715 129,704
----------------------------------------------------------------------------------
Long-term receivable - Other (Texas) 814,814 814,814 - - - -
Other Assets 166,478 161,178 5,300 - - -
Investment & Intercompany in Subsidiaires - - - - - -
----------------------------------------------------------------------------------
TOTAL ASSETS 23,718,042 24,440,082 (722,040) 7,005,501 6,725,234 280,267
----------------------------------------------------------------------------------
----------------------------------------------------------------------------------
POST PETITION CURRENT LIABILITIES
Accounts payable 253,654 103,822 149,832 164,478 62,395 102,083
Line of Credit - - - - - -
Accrued expenses, excluding bankruptcy costs 446,192 593,374 (147,182) 311,461 500,966 (189,505)
Accrued bankruptcy costs - - - - - -
Estimated claims against cash held in escrow 2,560,602 2,651,004 (90,402) - - -
Billings in excess of costs & earnings - - - - - -
Current portion of long term debt - - - - - -
Intercompany - BNYFC 8,216,459 8,361,657 (145,198) 7,242,789 6,579,455 663,334
Intercompany payables 210,101 90,160 119,941 248,621 138,963 109,658
----------------------------------------------------------------------------------
TOTAL POST PETITION CURRENT LIABILITIES 11,687,008 11,800,017 (113,009) 7,967,349 7,281,779 685,570
Intercompany - BNYFC - - - - - -
Intercompany Notes Payable 8,741,768 8,741,768 - - -
Pre Petition Liabilities 2,510,300 2,514,154 (3,854) 1,232,316 1,306,146 (73,830)
Pre Petition Estimated Construction Claims - - - - - -
----------------------------------------------------------------------------------
TOTAL LIABILITIES 22,939,076 23,055,939 (116,863) 9,199,665 8,587,925 611,740
----------------------------------------------------------------------------------
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 (1,422,623) (817,446) (605,177) (1,292,409) (960,936) (331,473)
----------------------------------------------------------------------------------
TOTAL SHAREHOLDERS' EQUITY 778,966 1,384,143 (605,177) (2,194,164) (1,862,691) (331,473)
----------------------------------------------------------------------------------
TOTAL LIABILITIES & SHAREHOLDERS' EQUITY 23,718,042 24,440,082 (722,040) 7,005,501 6,725,234 280,267
----------------------------------------------------------------------------------
----------------------------------------------------------------------------------
</TABLE>
See accompanying notes to financial statement information.
<PAGE>
OMEGA ENVIRONMENTAL, INC.
DEBTOR IN POSESSION CASE #97-06084
COMPARATIVE BALANCE SHEET INFORMATION
<TABLE>
<CAPTION>
(UNAUDITED) (UNAUDITED)
(UNAUDITED) (UNAUDITED) AUGUST 31, 1997 JULY 31, 1997
AUGUST 31, 1997 JULY 31, 1997 CONTINUING CONTINUING
CORPORATE CORPORATE CHANGE OPERATIONS OPERATIONS CHANGE
----------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
CURRENT ASSETS
Cash 221,984 554,545 (332,561) 245,962 1,010,022 (764,060)
Restricted cash held in escrow - - - 2,596,886 2,723,450 (126,564)
Accounts receivable
A/R--trade 145,652 103,577 42,075 14,547,897 14,155,138 392,759
A/R--interco - - - 207,999 150,807 57,192
A/R--employees - - - 28,517 26,762 1,755
A/R--supplemental - 871,302 782,662 88,640
A/R--misc. 1,156,362 1,154,904 1,458 1,183,726 1,171,271 12,455
Allowance for doubtful accounts (1,203,557) (1,203,557) - (3,087,912) (3,032,462) (55,450)
----------------------------------------------------------------------------------
Accounts receivable, net 98,457 54,924 43,533 13,751,529 13,254,178 497,351
----------------------------------------------------------------------------------
Costs and earnings in excess of billings - - - 8,123,970 8,633,546 (509,576)
Prepaid expenses 159,251 311,448 (152,197) 354,539 504,534 (149,995)
Inventory - - - 3,343,029 3,331,889 11,140
Inventory reserve - - - (890,385) (890,385) -
----------------------------------------------------------------------------------
Inventory, net - - - 2,452,644 2,441,504 11,140
----------------------------------------------------------------------------------
Other current assets 139 139 - 139 139 -
----------------------------------------------------------------------------------
TOTAL CURRENT ASSETS 479,831 921,056 (441,225) 27,525,669 28,567,373 (1,041,704)
----------------------------------------------------------------------------------
PROPERTY AND EQUIPMENT
Field equipment - - - 2,331,406 2,266,087 65,319
Automotive equipment - - - 1,515,994 1,436,273 79,721
Office furniture and equipment 401,225 401,225 - 2,047,163 1,761,336 285,827
Equipment under capital leases - - - - -
Leasehold improvements 21,780 21,780 - 150,596 150,596 -
----------------------------------------------------------------------------------
TOTAL PROPERTY & EQUIP., AT COST 423,005 423,005 - 6,045,159 5,614,292 430,867
Accum. Depreciation (345,849) (342,155) (3,694) (3,271,590) (2,990,435) (281,155)
----------------------------------------------------------------------------------
TOTAL PROPERTY & EQUIP., NET 77,156 80,850 (3,694) 2,773,569 2,623,857 149,712
----------------------------------------------------------------------------------
Long-term receivable - Other (Texas) - - 814,814 814,814 -
Other Assets 486,189 704,835 (218,646) 652,667 866,013 (213,346)
Investment & Intercompany in Subsidiaires 78,490,636 78,490,636 - 78,490,636 78,490,636 -
----------------------------------------------------------------------------------
TOTAL ASSETS 79,533,812 80,197,377 (663,565) 110,257,355 111,362,693 (1,105,338)
----------------------------------------------------------------------------------
----------------------------------------------------------------------------------
POST PETITION CURRENT LIABILITIES
Accounts payable 61,807 253,020 (191,213) 479,939 419,237 60,702
Line of Credit 20,098,371 20,403,947 (305,576) 20,098,371 20,403,947 (305,576)
Accrued expenses, excluding bankruptcy costs 441,514 669,350 (227,836) 1,199,167 1,763,690 (564,523)
Accrued bankruptcy costs 1,422,864 987,864 435,000 1,422,864 987,864 435,000
Estimated claims against cash held in escrow - - - 2,560,602 2,651,004 (90,402)
Billings in excess of costs & earnings - - - - - -
Current portion of long term debt - - - - - -
Intercompany - BNYFC - - 15,459,248 14,941,112 518,136
Intercompany payables 360 9,287 (8,927) 459,082 238,410 220,672
----------------------------------------------------------------------------------
TOTAL POST PETITION CURRENT LIABILITIES 22,024,916 22,323,468 (298,552) 41,679,273 41,405,264 274,009
Intercompany - BNYFC (21,694,916) (21,912,337) 217,421 (21,694,916) (21,912,337) 217,421
Intercompany Notes Payable - - 8,741,768 8,741,768 -
Pre Petition Liabilities 2,552,506 2,296,555 255,951 6,295,122 6,116,855 178,267
Pre Petition Estimated Construction Claims - - - - -
----------------------------------------------------------------------------------
TOTAL LIABILITIES 2,882,506 2,707,686 174,820 35,021,247 34,351,550 669,697
----------------------------------------------------------------------------------
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 (9,766,594) (8,928,209) (838,385) (12,481,626) (10,706,591) (1,775,035)
----------------------------------------------------------------------------------
TOTAL SHAREHOLDERS' EQUITY 76,651,306 77,489,691 (838,385) 75,236,108 77,011,143 (1,775,035)
----------------------------------------------------------------------------------
TOTAL LIABILITIES & SHAREHOLDERS' EQUITY 79,533,812 80,197,377 (663,565) 110,257,355 111,362,693 (1,105,338)
----------------------------------------------------------------------------------
----------------------------------------------------------------------------------
</TABLE>
See accompanying notes to financial statement information.
<PAGE>
OMEGA ENVIRONMENTAL, INC.
DEBTOR IN POSESSION CASE #97-06084
COMPARATIVE BALANCE SHEET INFORMATION
<TABLE>
<CAPTION>
(UNAUDITED) (UNAUDITED) (UNAUDITED) (UNAUDITED)
AUGUST 31, 1997 JULY 31, 1997 AUGUST 31, 1997 JULY 31, 1997
DISCONTINUED DISCONTINUED COMBINED COMBINED
OPERATIONS OPERATIONS CHANGE FINAL FINAL CHANGE
-----------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
CURRENT ASSETS
Cash 111,854 81,864 29,990 357,816 1,091,886 (734,070)
Restricted cash held in escrow - 68,087 (68,087) 2,596,886 2,791,537 (194,651)
Accounts receivable
A/R--trade 11,703,053 12,278,986 (575,933) 26,250,950 26,434,124 (183,174)
A/R--interco 471,813 198,958 272,855 - - -
A/R--employees 6,036 30,115 (24,079) 34,553 56,877 (22,324)
A/R--supplemental - - 871,302 782,662 88,640
A/R--misc. 168,114 555,368 (387,254) 1,351,840 1,726,639 (374,799)
Allowance for doubtful accounts (3,274,939) (2,922,062) (352,877) (6,362,851) (5,954,524) (408,327)
----------------------------------------------------------------------------------
Accounts receivable, net 9,074,077 10,141,365 (1,067,288) 22,145,794 23,045,778 (899,984)
----------------------------------------------------------------------------------
Costs and earnings in excess of billings 553,581 568,706 (15,125) 8,677,551 9,202,252 (524,701)
Prepaid expenses 49,771 (184,605) 234,376 404,310 319,929 84,381
Inventory 2,763,584 3,315,989 (552,405) 6,106,613 6,647,878 (541,265)
Inventory reserve (813,941) (813,941) - (1,704,326) (1,704,326) -
----------------------------------------------------------------------------------
Inventory, net 1,949,643 2,502,048 (552,405) 4,402,287 4,943,552 (541,265)
----------------------------------------------------------------------------------
Other current assets 41,855 46,708 (4,853) 41,994 46,708 (4,714)
----------------------------------------------------------------------------------
TOTAL CURRENT ASSETS 11,780,781 13,224,173 (1,443,392) 38,626,638 41,441,642 (2,815,004)
----------------------------------------------------------------------------------
PROPERTY AND EQUIPMENT
Field equipment 502,814 875,879 (373,065) 2,834,220 3,141,966 (307,746)
Automotive equipment 393,291 825,569 (432,278) 1,909,285 2,261,842 (352,557)
Office furniture and equipment 521,164 700,528 (179,364) 2,568,327 2,461,864 106,463
Equipment under capital leases - - - -
Leasehold improvements 199,949 311,474 (111,525) 350,545 462,070 (111,525)
----------------------------------------------------------------------------------
TOTAL PROPERTY & EQUIP., AT COST 1,617,218 2,713,450 (1,096,232) 7,662,377 8,327,742 (665,365)
Accum. Depreciation (636,712) (1,105,082) 468,370 (3,908,302) (4,095,517) 187,215
----------------------------------------------------------------------------------
TOTAL PROPERTY & EQUIP., NET 980,506 1,608,368 (627,862) 3,754,075 4,232,225 (478,150)
----------------------------------------------------------------------------------
Long-term receivable - Other (Texas) - - - 814,814 814,814 -
Other Assets 35,885 38,757 (2,872) 699,391 910,183 (210,792)
Investment & Intercompany in Subsidiaires - - 425,000 425,000 -
----------------------------------------------------------------------------------
TOTAL ASSETS 12,797,172 14,871,298 (2,074,126) 44,319,918 47,823,864 (3,503,946)
----------------------------------------------------------------------------------
----------------------------------------------------------------------------------
POST PETITION CURRENT LIABILITIES
Accounts payable 200,954 168,827 32,127 680,893 588,064 92,829
Line of Credit - - - 20,098,371 20,403,947 (305,576)
Accrued expenses, excluding bankruptcy costs 231,620 1,003,566 (771,946) 1,430,787 2,767,256 (1,336,469)
Accrued bankruptcy costs - - - 1,422,864 987,864 435,000
Estimated claims against cash held in escrow - - - 2,560,602 2,651,004 (90,402)
Billings in excess of costs & earnings 10,868 25,518 (14,650) 10,868 25,518 (14,650)
Current portion of long term debt - 19,141 (19,141) - 19,141 (19,141)
Intercompany - BNYFC 6,235,592 6,970,697 (735,105) - - -
Intercompany payables 220,729 117,370 103,359 - - -
-----------------------------------------------------------------------------------
TOTAL POST PETITION CURRENT LIABILITIES 6,899,763 8,305,119 (1,405,356) 26,204,385 27,442,794 (1,238,409)
Intercompany - BNYFC - - - - - -
Intercompany Notes Payable 2,535,455 2,535,455 - - - -
Pre Petition Liabilities 12,388,657 12,122,622 266,035 18,683,779 18,239,477 444,302
Pre Petition Estimated Construction Claims 3,000,000 3,000,000 - 3,000,000 3,000,000 -
----------------------------------------------------------------------------------
TOTAL LIABILITIES 24,823,875 25,963,196 (1,139,321) 47,888,164 48,682,271 (794,107)
-----------------------------------------------------------------------------------
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) (32,353,339) - (111,988,497) (111,988,497) -
Y-T-D net income pre petition (676,048) (676,048) - (1,845,936) (1,845,936) -
Y-T-D net income post petition (6,450,896) (5,516,091) (934,805) (13,772,971) (11,063,132) (2,709,839)
-----------------------------------------------------------------------------------
TOTAL SHAREHOLDERS' EQUITY (12,026,703) (11,091,898) (934,805) (3,568,246) (858,407) (2,709,839)
-----------------------------------------------------------------------------------
TOTAL LIABILITIES & SHAREHOLDERS' EQUITY 12,797,172 14,871,298 (2,074,126) 44,319,918 47,823,864 (3,503,946)
-----------------------------------------------------------------------------------
-----------------------------------------------------------------------------------
</TABLE>
See accompanying notes 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
AUGUST 31, 1997 JULY 31, 1997 AUGUST 31, 1997 JULY 31, 1997
ESD ESD CHANGE PSD PSD CHANGE
-------------------------------------------- --------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
Sales 1,267,391 1,371,140 (103,749) 1,073,799 1,144,993 (71,194)
Cost of Sales 866,569 769,224 97,345 889,920 993,181 (103,261)
-------------------------------------------- --------------------------------------------
Gross Profit 400,822 601,916 (201,094) 183,879 151,812 32,067
Selling, General, and Administrative 396,528 370,259 26,269 284,705 249,821 34,884
-------------------------------------------- --------------------------------------------
Income From Operations 4,294 231,657 (227,363) (100,826) (98,009) (2,817)
Other Income(Expense):
I/C Interest Income (Expense) (79,489) (80,769) 1,280 (66,396) (45,001) (21,395)
Interest Expense (1,550) (3,531) 1,981 - - -
Interest Income - - - - - -
Gain (loss) on Asset Disposition - - - - - -
Other Expense (528,431) - (528,431) (164,251) (45,393) (118,858)
Other Income - - - - - -
-------------------------------------------- --------------------------------------------
Total Other Income (Expense) (609,470) (84,300) (525,170) (230,647) (90,394) (140,253)
Net Income (Loss) Before Bankruptcy -------------------------------------------- --------------------------------------------
Administrative Expenses (605,176) 147,357 (752,533) (331,473) (188,403) (143,070)
Bankruptcy Administrative Expenses - - - -
-------------------------------------------- --------------------------------------------
Net Income (Loss) (605,176) 147,357 (752,533) (331,473) (188,403) (143,070)
-------------------------------------------- --------------------------------------------
-------------------------------------------- --------------------------------------------
</TABLE>
See accompanying notes 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 AUGUST 31, 1997 JULY 31, 1997
AUGUST 31, 1997 JULY 31, 1997 CONTINUING CONTINUING
CORPORATE CORPORATE CHANGE OPERATIONS OPERATIONS CHANGE
--------------------------------------------- -------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
Sales - - 2,341,190 2,516,133 (174,943)
Cost of Sales - - - 1,756,489 1,762,405 (5,916)
--------------------------------------------- -------------------------------------------
Gross Profit - - - 584,701 753,728 (169,027)
Selling, General, and Administrative 363,457 379,006 (15,549) 1,044,690 999,086 45,604
--------------------------------------------- -------------------------------------------
Income From Operations (363,457) (379,006) 15,549 (459,989) (245,358) (214,631)
Other Income(Expense):
I/C Interest Income (Expense) 231,614 259,316 (27,702) 85,729 133,546 (47,817)
Interest Expense (174,987) (172,311) (2,676) (176,537) (175,842) (695)
Interest Income 4,223 4,476 (253) 4,223 4,476 (253)
Gain (loss) on Asset Disposition - - - - - -
Other Expense (100,778) (53,311) (47,467) (793,460) (98,704) (694,756)
Other Income - 1,494 (1,494) - 1,494 (1,494)
--------------------------------------------- -------------------------------------------
Total Other Income (Expense) (39,928) 39,664 (79,592) (880,045) (135,030) (745,015)
Net Income (Loss) Before Bankruptcy --------------------------------------------- -------------------------------------------
Administrative Expenses (403,385) (339,342) (64,043) (1,340,034) (380,388) (959,646)
Bankruptcy Administrative Expenses (435,000) (410,000) (25,000) (435,000) (410,000) (25,000)
--------------------------------------------- -------------------------------------------
Net Income (Loss) (838,385) (749,342) (89,043) (1,775,034) (790,388) (984,646)
--------------------------------------------- -------------------------------------------
--------------------------------------------- -------------------------------------------
</TABLE>
See accompanying notes 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
AUGUST 31, 1997 JULY 31, 1997 AUGUST 31, 1997 JULY 31, 1997
DISCONTINUING DISCONTINUING COMBINED COMBINED
OPERATIONS OPERATIONS CHANGE FINAL FINAL CHANGE
------------------------------------------ -------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
Sales 261,702 334,831 (73,129) 2,453,627 2,697,881 (244,254)
Cost of Sales 556,516 590,616 (34,100) 2,163,740 2,199,938 (36,198)
------------------------------------------ -------------------------------------------
Gross Profit (294,814) (255,785) (39,029) 289,887 497,943 (208,056)
Selling, General, and Administrative 336,591 925,655 (589,064) 1,381,281 1,924,741 (543,460)
------------------------------------------ -------------------------------------------
-
Income From Operations (631,405) (1,181,440) 550,035 (1,091,394) (1,426,798) 335,404
Other Income(Expense):
I/C Interest Income (Expense) (85,730) (128,819) 43,089 - - -
Interest Expense (10) (7,880) 7,870 (176,547) (183,722) 7,175
Interest Income 1,820 7,698 (5,878) 6,043 12,174 (6,131)
Gain (loss) on Asset Disposition (195,418) (431,238) 235,820 (195,418) (431,238) 235,820
Other Expense (27,106) (1,605,239) 1,578,133 (820,567) (1,699,216) 878,649
Other Income 3,044 108 2,936 3,044 1,602 1,442
------------------------------------------ ------------------------------------------
Total Other Income (Expense) (303,400) (2,165,370) 1,861,970 (1,183,445) (2,300,400) 1,116,955
Net Income (Loss) Before Bankruptcy ------------------------------------------ ------------------------------------------
Administrative Expenses (934,805) (3,346,810) 2,412,005 (2,274,839) (3,727,198) 1,452,359
Bankruptcy Administrative Expenses - - - (435,000) (410,000) (25,000)
------------------------------------------ ------------------------------------------
Net Income (Loss) (934,805) (3,346,810) 2,412,005 (2,709,839) (4,137,198) 1,427,359
------------------------------------------ ------------------------------------------
------------------------------------------- -------------------------------------------
</TABLE>
See accompanying notes to financial statement information.
<PAGE>
OMEGA ENVIRONMENTAL, INC.
DEBTOR IN POSSESSION CASE # 97 - 06084
COMPARATIVE STATEMENT OF CASH FLOWS INFORMATION
<TABLE>
<CAPTION>
(UNAUDITED) (UNAUDITED)
MONTH ENDED MONTH ENDED
AUGUST 31, 1997 JULY 31, 1997 CHANGE
----------------- --------------- ---------------
<S> <C> <C> <C>
Cash flows from operating activities:
Net income (loss) $ (2,709,839) $ (4,137,198) $ 1,427,359
Adjustments to reconcile net income (loss) to net cash
used in operating activities:
Depreciation 117,095 138,653 (21,558)
Equity in Losses in Subsidiaries 0 1,280,583 (1,280,583)
(Gain) Loss on sale of property and equipment 195,418 415,063 (219,645)
Change in certain assets & liabilities:
(Increase) decrease in:
Receivables 899,984 (156,758) 1,056,742
Costs in excess of billings 524,701 (418,786) 943,487
Inventory 541,265 540,310 955
Prepaids & other assets (79,528) 215,334 (294,862)
Increase (decrease) in:
Accounts payable 92,829 179,885 (87,056)
Accrued expenses (901,469) (123,746) (777,723)
Billings in excess of costs (14,650) (133,423) 118,773
Other net changes in assets and liabilities 314,902 218,776 96,126
----------------- --------------- ---------------
Total adjustments 1,690,547 2,155,891 (465,344)
----------------- --------------- ---------------
Net cash provided by (used in) operating activities (1,019,292) (1,981,307) 962,015
Cash flows from investing activities :
Proceeds from sale of equipment 178,951 1,933,475 (1,754,524)
Additions to property and equipment (13,314) (12,343) (971)
----------------- --------------- ---------------
Net cash provided by (used in) investing activities 165,637 1,921,132 (1,755,495)
Cash flows from financing and other activities:
Net proceeds (repayments) from revolver credit loan (305,576) 478,093 (783,669)
Increase in pre petition liabilities 425,161 209,176 215,985
----------------- --------------- ---------------
Net cash provided by (used in) financing activities 119,585 687,269 (567,684)
----------------- --------------- ---------------
Net increase (decrease) in cash (734,070) 627,094 (1,361,164)
----------------- --------------- ---------------
CASH AT BEGINNING OF PERIOD 1,091,886 464,792 627,094
----------------- --------------- ---------------
CASH AT END OF PERIOD $ 357,816 $ 1,091,886 $ (734,070)
----------------- --------------- ---------------
----------------- --------------- ---------------
</TABLE>
See accompanying notes to financial statement information.
<PAGE>
EXHIBIT 99.1
Omega Environmental, Inc.
Debtor in Possession Case # 97-06084
August 31, 1997 and July 31,1997 Financial Reporting Information
Notes to Financial Statement Information
The financial statement information for August and July 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.
As of August 31, 1997, the Company's borrowings under the debtor-in-possession
financing agreement with BNY Financial Corporation ("BNYFC") were $20,098,371
which exceeded the $18,250,000 borrowing limit in the debtor-in-possession
financing agreement by $1,848,371. Additionally, the Company's borrowings
exceeded the collateral formula by $5,657,652. The Company and BNYFC continue
to operate under the debtor-in-possession financing arrangement.
