<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 17, 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
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 17, 1997, the Registrant filed unaudited financial
statement information as of and for each of the months ended July 31,
1997 and June 30, 1997 with related note 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 note to financial statement information
which was included in the bankruptcy filing referred to above.
ITEM 7. FINANCIAL STATEMENTS AND EXHIBITS
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 July 31, 1997 and June 30, 1997 with related
Note 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 17, 1997 /s/ Bradley S. Powell
-----------------------------------
Bradley S. Powell
Vice President/Corporate Controller
<PAGE>
OMEGA ENVIRONMENTAL, INC. EXHIBIT 99.1
DEBTOR IN POSSESSION CASE #97-06084
COMPARATIVE BALANCE SHEET INFORMATION
<TABLE>
<CAPTION>
(UNAUDITED) (UNAUDITED) (UNAUDITED) (UNAUDITED)
JULY 31, 1997 JUNE 30, 1997 JULY 31, 1997 JUNE 30, 1997
ESD ESD CHANGE PSD PSD CHANGE
---------------------------------------- ---------------------------------------
<S> <C> <C> <C> <C> <C> <C>
CURRENT ASSETS
Cash 152,230 21,768 130,462 303,247 91,797 211,450
Restricted cash held in escrow 2,723,450 2,723,450 - - - -
Accounts receivable
A/R--trade 10,756,387 10,881,702 (125,315) 3,295,174 2,755,800 539,374
A/R--interco 48,972 136,383 (87,411) 101,835 164,764 (62,929)
A/R--employees 8,987 8,512 475 17,775 16,824 951
A/R--supplemental 782,662 774,362 8,300 -
A/R--misc. 16,367 33,893 (17,526) - -
Allowance for doubtful accounts (1,552,238) (1,698,379) 146,141 (276,667) (341,305) 64,638
---------------------------------------- ----------------------------------------
Accounts receivable, net 10,061,137 10,136,473 (75,336) 3,138,117 2,596,083 542,034
---------------------------------------- ----------------------------------------
Costs and earnings in excess of billings 8,633,546 7,930,116 703,430 - 628 (628)
Prepaid expenses 93,819 3,081 90,738 99,267 (7,829) 107,096
Inventory 24,616 - 24,616 3,307,273 3,463,984 (156,711)
Inventory reserve - - - (890,385) (918,000) 27,615
---------------------------------------- ----------------------------------------
Inventory, net 24,616 - 24,616 2,416,888 2,545,984 (129,096)
---------------------------------------- ----------------------------------------
Other current assets - - - - - -
---------------------------------------- ----------------------------------------
TOTAL CURRENT ASSETS 21,688,798 20,814,888 873,910 5,957,519 5,226,663 730,856
---------------------------------------- ----------------------------------------
PROPERTY AND EQUIPMENT
Field equipment 2,031,097 2,021,451 9,646 234,990 225,845 9,145
Automotive equipment 832,814 832,814 - 603,459 491,994 111,465
Office furniture and equipment 760,564 710,551 50,013 599,547 580,279 19,268
Equipment under capital leases - - - - - -
Leasehold improvements 90,823 90,823 - 37,993 37,993 -
---------------------------------------- ----------------------------------------
TOTAL PROPERTY & EQUIP., AT COST 3,715,298 3,655,639 59,659 1,475,989 1,336,111 139,878
---------------------------------------- ----------------------------------------
Accum. Depreciation (1,940,006) (1,857,565) (82,441) (708,274) (612,881) (95,393)
---------------------------------------- ----------------------------------------
TOTAL PROPERTY & EQUIP., NET 1,775,292 1,798,074 (22,782) 767,715 723,230 44,485
---------------------------------------- ----------------------------------------
Long-term receivable - Other (Texas) 814,814 1,039,070 (224,256) - - -
Other Assets 161,178 161,178 - - - -
Investment & Intercompany in Subsidiaries - - - - - -
---------------------------------------- ----------------------------------------
TOTAL ASSETS 24,440,082 23,813,210 626,872 6,725,234 5,949,893 775,341
---------------------------------------- ----------------------------------------
---------------------------------------- ----------------------------------------
POST PETITION CURRENT LIABILITIES
Accounts payable 103,822 93,565 10,257 62,395 80,836 (18,441)
Line of Credit - - - - - -
Accrued expenses, excluding bankruptcy costs 593,374 619,554 (26,180) 500,966 795,864 (294,898)
Accrued bankruptcy costs - - - - - -
Estimated claims against cash held in escrow 2,651,004 2,652,269 (1,265) - - -
Billings in excess of costs & earnings - - - - - -
Current portion of long term debt - - - - - -
Intercompany - BNYFC 8,361,657 (327,714) 8,689,371 6,579,455 564,555 6,014,900
Intercompany payables 90,160 443,111 (352,951) 138,963 810,686 (671,723)
---------------------------------------- ----------------------------------------
TOTAL POST PETITION CURRENT LIABILITIES 11,800,017 3,480,785 8,319,232 7,281,779 2,251,941 5,029,838
Intercompany - BNYFC - 7,841,012 (7,841,012) - 4,402,251 (4,402,251)
Intercompany Notes Payable 8,741,768 8,741,768 - - -
Pre Petition Liabilities 2,514,154 2,512,859 1,295 1,306,146 969,989 336,157
Pre Petition Estimated Construction Claims - - - - - -
---------------------------------------- ----------------------------------------
TOTAL LIABILITIES 23,055,939 22,576,424 479,515 8,587,925 7,624,181 963,744
---------------------------------------- ----------------------------------------
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 (817,446) (964,803) 147,357 (960,936) (772,533) (188,403)
---------------------------------------- ----------------------------------------
TOTAL SHAREHOLDERS' EQUITY 1,384,143 1,236,786 147,357 (1,862,691) (1,674,288) (188,403)
---------------------------------------- ----------------------------------------
TOTAL LIABILITIES & SHAREHOLDERS' EQUITY 24,440,082 23,813,210 626,872 6,725,234 5,949,893 775,341
---------------------------------------- ----------------------------------------
---------------------------------------- ----------------------------------------
</TABLE>
See accompanying note to financial statement information
<PAGE>
OMEGA ENVIRONMENTAL, INC.
DEBTOR IN POSSESSION CASE #97-06084
COMPARATIVE BALANCE SHEET INFORMATION
<TABLE>
<CAPTION>
(UNAUDITED) (UNAUDITED)
(UNAUDITED) (UNAUDITED) JULY 31, 1997 JUNE 30, 1997
JULY 31, 1997 JUNE 30, 1997 CONTINUING CONTINUING
CORPORATE CORPORATE CHANGE OPERATIONS OPERATIONS CHANGE
--------------------------------------- ----------------------------------------
<S> <C> <C> <C> <C> <C> <C>
CURRENT ASSETS
Cash 554,545 211,843 342,702 1,010,022 325,408 684,614
Restricted cash held in escrow - - - 2,723,450 2,723,450 -
Accounts receivable
A/R--trade 103,577 236,846 (133,269) 14,155,138 13,874,348 280,790
A/R--interco 520,326 519,588 738 671,133 820,735 (149,602)
A/R--employees - - - 26,762 25,336 1,426
A/R--supplemental - 782,662 774,362 8,300
A/R--misc. 1,154,904 1,168,737 (13,833) 1,171,271 1,202,630 (31,359)
Allowance for doubtful accounts (1,203,557) (1,202,957) (600) (3,032,462) (3,242,641) 210,179
--------------------------------------- ---------------------------------------
Accounts receivable, net 575,250 722,214 (146,964) 13,774,504 13,454,770 319,734
--------------------------------------- ---------------------------------------
Costs and earnings in excess of billings - - - 8,633,546 7,930,744 702,802
Prepaid expenses 311,448 484,381 (172,933) 504,534 479,633 24,901
Inventory - - - 3,331,889 3,463,984 (132,095)
Inventory reserve - - - (890,385) (918,000) 27,615
--------------------------------------- ---------------------------------------
Inventory, net - - - 2,441,504 2,545,984 (104,480)
--------------------------------------- ---------------------------------------
Other current assets - 37,860 (37,860) - 37,860 (37,860)
--------------------------------------- ---------------------------------------
TOTAL CURRENT ASSETS 1,441,243 1,456,298 (15,055) 29,087,560 27,497,849 1,589,711
--------------------------------------- ---------------------------------------
PROPERTY AND EQUIPMENT
Field equipment - - - 2,266,087 2,247,296 18,791
Automotive equipment - - - 1,436,273 1,324,808 111,465
Office furniture and equipment 401,225 401,225 - 1,761,336 1,692,055 69,281
Equipment under capital leases - - - - - -
Leasehold improvements 21,780 21,780 - 150,596 150,596 -
--------------------------------------- ---------------------------------------
TOTAL PROPERTY & EQUIP., AT COST 423,005 423,005 - 5,614,292 5,414,755 199,537
Accum. Depreciation (342,155) (338,527) (3,628) (2,990,435) (2,808,973) (181,462)
--------------------------------------- ---------------------------------------
TOTAL PROPERTY & EQUIP., NET 80,850 84,478 (3,628) 2,623,857 2,605,782 18,075
--------------------------------------- ---------------------------------------
Long-term receivable - Other (Texas) - 814,814 1,039,070 (224,256)
Other Assets 710,248 701,591 8,657 871,426 862,769 8,657
Investment & Intercompany in Subsidiaires 83,999,372 84,534,918 (535,546) 83,999,372 84,534,918 (535,546)
--------------------------------------- ---------------------------------------
TOTAL ASSETS 86,231,713 86,777,285 (545,572) 117,397,029 116,540,388 856,641
--------------------------------------- ---------------------------------------
--------------------------------------- ---------------------------------------
POST PETITION CURRENT LIABILITIES
Accounts payable 253,020 64,774 188,246 419,237 239,175 180,062
Line of Credit 20,403,947 19,155,677 1,248,270 20,403,947 19,155,677 1,248,270
Accrued expenses, excluding bankruptcy costs 669,350 830,325 (160,975) 1,763,690 2,245,743 (482,053)
Accrued bankruptcy costs 987,864 577,864 410,000 987,864 577,864 410,000
Estimated claims against cash held in escrow - - - 2,651,004 2,652,269 (1,265)
Billings in excess of costs & earnings - - - - - -
Current portion of long term debt - 770,177 (770,177) - 770,177 (770,177)
Intercompany - BNYFC - - - 14,941,112 236,841 14,704,271
Intercompany payables 9,287 6,005 3,282 238,410 1,259,802 (1,021,392)
--------------------------------------- ---------------------------------------
TOTAL POST PETITION CURRENT LIABILITIES 22,323,468 21,404,822 918,646 41,405,264 27,137,548 14,267,716
Intercompany - BNYFC (21,912,337) (22,488,855) 576,518 (21,912,337) (10,245,592) (11,666,745)
Intercompany Notes Payable - 8,741,768 8,741,768 -
Pre Petition Liabilities 2,296,555 2,578,223 (281,668) 6,116,855 6,061,071 55,784
Pre Petition Estimated Construction Claims - - - -
--------------------------------------- ---------------------------------------
TOTAL LIABILITIES 2,707,686 1,494,190 1,213,496 34,351,550 31,694,795 2,656,755
--------------------------------------- ---------------------------------------
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 (2,893,873) (1,134,805) (1,759,068) (4,672,255) (2,872,141) (1,800,114)
--------------------------------------- ---------------------------------------
TOTAL SHAREHOLDERS' EQUITY 83,524,027 85,283,095 (1,759,068) 83,045,479 84,845,593 (1,800,114)
--------------------------------------- ---------------------------------------
TOTAL LIABILITIES & SHAREHOLDERS' EQUITY 86,231,713 86,777,285 (545,572) 117,397,029 116,540,388 856,641
--------------------------------------- ---------------------------------------
--------------------------------------- ---------------------------------------
</TABLE>
See accompanying note to financial statement information
<PAGE>
OMEGA ENVIRONMENTAL, INC.
DEBTOR IN POSSESSION CASE #97-06084
COMPARATIVE BALANCE SHEET INFORMATION
<TABLE>
<CAPTION>
(UNAUDITED) (UNAUDITED) (UNAUDITED) (UNAUDITED)
JULY 31, 1997 JUNE 30, 1997 JULY 31, 1997 JUNE 30, 1997
DISCONTINUED DISCONTINUED COMBINED COMBINED
OPERATIONS OPERATIONS CHANGE FINAL FINAL CHANGE
--------------------------------------- ---------------------------------------
<S> <C> <C> <C> <C> <C> <C>
CURRENT ASSETS
Cash 81,864 139,384 (57,520) 1,091,886 464,792 627,094
Restricted cash held in escrow 68,087 67,902 185 2,791,537 2,791,352 185
Accounts receivable
A/R--trade 12,278,986 12,852,551 (573,565) 26,434,124 25,952,537 481,587
A/R--interco 198,958 2,637,461 (2,438,503) - - -
A/R--employees 30,115 36,268 (6,153) 56,877 61,604 (4,727)
A/R--supplemental - - - 782,662 774,362 8,300
A/R--misc. 555,368 207,298 348,070 1,726,639 2,184,290 (457,651)
Allowance for doubtful accounts (2,922,062) (2,841,132) (80,930) (5,954,524) (6,083,773) 129,249
--------------------------------------- ---------------------------------------
Accounts receivable, net 10,141,365 12,892,446 (2,751,081) 23,045,778 22,889,020 156,758
--------------------------------------- ---------------------------------------
Costs and earnings in excess of billings 568,706 852,722 (284,016) 9,202,252 8,783,466 418,786
Prepaid expenses (184,605) (44,829) (139,776) 319,929 434,804 (114,875)
Inventory 3,315,989 4,154,640 (838,651) 6,647,878 7,618,624 (970,746)
Inventory reserve (813,941) (1,216,762) 402,821 (1,704,326) (2,134,762) 430,436
--------------------------------------- ---------------------------------------
Inventory, net 2,502,048 2,937,878 (435,830) 4,943,552 5,483,862 (540,310)
--------------------------------------- ---------------------------------------
Other current assets 46,708 109,307 (62,599) 46,708 147,167 (100,459)
--------------------------------------- ---------------------------------------
TOTAL CURRENT ASSETS 13,224,173 16,954,810 (3,730,637) 41,441,642 40,994,463 447,179
--------------------------------------- ---------------------------------------
PROPERTY AND EQUIPMENT
Field equipment 875,879 3,451,892 (2,576,013) 3,141,966 5,699,188 (2,557,222)
Automotive equipment 825,569 2,671,270 (1,845,701) 2,261,842 3,996,078 (1,734,236)
Office furniture and equipment 700,528 1,424,598 (724,070) 2,461,864 3,116,653 (654,789)
Equipment under capital leases - - - - - -
Leasehold improvements 311,474 660,360 (348,886) 462,070 810,956 (348,886)
--------------------------------------- ---------------------------------------
TOTAL PROPERTY & EQUIP., AT COST 2,713,450 8,208,120 (5,494,670) 8,327,742 13,622,875 (5,295,133)
Accum. Depreciation (1,105,082) (4,106,829) 3,001,747 (4,095,517) (6,915,802) 2,820,285
--------------------------------------- ---------------------------------------
TOTAL PROPERTY & EQUIP., NET 1,608,368 4,101,291 (2,492,923) 4,232,225 6,707,073 (2,474,848)
--------------------------------------- ---------------------------------------
Long-term receivable - Other (Texas) - - - 814,814 1,039,070 (224,256)
Other Assets 38,757 43,384 (4,627) 910,183 906,153 4,030
Investment & Intercompany in Subsidiaires - - 425,000 1,705,583 (1,280,583)
--------------------------------------- ---------------------------------------
TOTAL ASSETS 14,871,298 21,099,485 (6,228,187) 47,823,864 51,352,342 (3,528,478)
--------------------------------------- ---------------------------------------
--------------------------------------- ---------------------------------------
POST PETITION CURRENT LIABILITIES
Accounts payable 168,827 169,004 (177) 588,064 408,179 179,885
Line of Credit - - - 20,403,947 19,155,677 1,248,270
Accrued expenses, excluding bankruptcy costs 1,003,566 1,055,259 (51,693) 2,767,256 3,301,002 (533,746)
Accrued bankruptcy costs - - - 987,864 577,864 410,000
Estimated claims against cash held in escrow - - - 2,651,004 2,652,269 (1,265)
Billings in excess of costs & earnings 25,518 158,941 (133,423) 25,518 158,941 (133,423)
Current portion of long term debt 19,141 19,141 - 19,141 789,318 (770,177)
Intercompany - BNYFC 6,970,697 (987,144) 7,957,841 - - -
Intercompany payables 117,370 1,618,996 (1,501,626) - - -
--------------------------------------- ---------------------------------------
TOTAL POST PETITION CURRENT LIABILITIES 8,305,119 2,034,197 6,270,922 27,442,794 27,043,250 399,544
Intercompany - BNYFC - 10,744,346 (10,744,346) - - -
Intercompany Notes Payable 2,535,455 2,535,455 - - - -
Pre Petition Liabilities 12,122,622 11,969,230 153,392 18,239,477 18,030,301 209,176
Pre Petition Estimated Construction Claims 3,000,000 3,000,000 - 3,000,000 3,000,000 -
--------------------------------------- ---------------------------------------
TOTAL LIABILITIES 25,963,196 30,283,228 (4,320,032) 48,682,271 48,073,551 608,720
--------------------------------------- ---------------------------------------
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 (5,516,091) (3,607,936) (1,908,155) (11,063,132) (6,925,934) (4,137,198)
--------------------------------------- ---------------------------------------
TOTAL SHAREHOLDERS' EQUITY (11,091,898) (9,183,743) (1,908,155) (858,407) 3,278,791 (4,137,198)
--------------------------------------- ---------------------------------------
TOTAL LIABILITIES & SHAREHOLDERS' EQUITY 14,871,298 21,099,485 (6,228,187) 47,823,864 51,352,342 (3,528,478)
--------------------------------------- ---------------------------------------
--------------------------------------- ---------------------------------------
</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
JULY 31, 1997 JUNE 30, 1997 JULY 31, 1997 JUNE 30, 1997
ESD ESD CHANGE PSD PSD CHANGE
--------------------------------------- ---------------------------------------
<S> <C> <C> <C> <C> <C> <C>
Sales 1,371,140 1,112,140 259,000 1,144,993 857,218 287,775
Cost of Sales 769,224 763,950 5,274 993,181 799,870 193,311
--------------------------------------- ---------------------------------------
Gross Profit 601,916 348,190 253,726 151,812 57,348 94,464
Selling, General, and Administrative 370,259 347,808 22,451 249,821 215,836 33,985
--------------------------------------- ---------------------------------------
Income From Operations 231,657 382 231,275 (98,009) (158,488) 60,479
Other Income(Expense):
I/C Interest Income (Expense) (80,769) (79,951) (818) (45,001) (44,546) (455)
Interest Expense (3,531) (1,085) (2,446) - - -
Interest Income - - - - - -
Gain (loss) on Asset Disposition - 2,123 (2,123) - - -
Other Expense - (760,550) 760,550 (45,393) (400,000) 354,607
Other Income - - - - - -
--------------------------------------- ---------------------------------------
Total Other Income (Expense) (84,300) (839,463) 755,163 (90,394) (444,546) 354,152
--------------------------------------- ---------------------------------------
Net Income (Loss) Before Bankruptcy
Administrative Expenses 147,357 (839,081) 986,438 (188,403) (603,034) 414,631
Bankruptcy Administrative Expenses - -
--------------------------------------- ---------------------------------------
Net Income (Loss) 147,357 (839,081) 986,438 (188,403) (603,034) 414,631
--------------------------------------- ---------------------------------------
</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 JULY 31, 1997 JUNE 30, 1997
JULY 31, 1997 JUNE 30, 1997 CONTINUING CONTINUING
CORPORATE CORPORATE CHANGE OPERATIONS OPERATIONS CHANGE
--------------------------------------- ---------------------------------------
<S> <C> <C> <C> <C> <C> <C>
Sales - 2,516,133 1,969,358 546,775
Cost of Sales - 6,005 (6,005) 1,762,405 1,569,825 192,580
--------------------------------------- ---------------------------------------
Gross Profit - (6,005) 6,005 753,728 399,533 354,195
Selling, General, and Administrative 379,006 303,588 75,418 999,086 867,232 131,854
--------------------------------------- ---------------------------------------
Income From Operations (379,006) (309,593) (69,413) (245,358) (467,699) 222,341
Other Income(Expense):
I/C Interest Income (Expense) 259,316 254,896 4,420 133,546 130,399 3,147
Interest Expense (172,311) (241,982) 69,671 (175,842) (243,067) 67,225
Interest Income 4,476 9,924 (5,448) 4,476 9,924 (5,448)
Gain (loss) on Asset Disposition - - - - 2,123 (2,123)
Other Expense (53,311) (163,991) 110,680 (1,108,430) (1,324,541) 216,111
Other Income 1,494 - 1,494 1,494 - 1,494
--------------------------------------- ---------------------------------------
Total Other Income (Expense) 39,664 (141,153) 180,817 (1,144,756) (1,425,163) 280,406
--------------------------------------- ---------------------------------------
Net Income (Loss) Before Bankruptcy
Administrative Expenses (339,342) (450,746) 111,404 (1,390,114) (1,892,861) 502,747
Bankruptcy Administrative Expenses (410,000) (296,831) (113,169) (410,000) (296,831) (113,169)
--------------------------------------- ---------------------------------------
Net Income (Loss) (749,342) (747,577) (1,765) (1,800,114) (2,189,692) 389,578
--------------------------------------- ---------------------------------------
</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
JULY 31, 1997 JUNE 30, 1997 JULY 31, 1997 JUNE 30, 1997
DISCONTINUING DISCONTINUING COMBINED COMBINED
OPERATIONS OPERATIONS CHANGE FINAL FINAL CHANGE
--------------------------------------- ---------------------------------------
<S> <C> <C> <C> <C> <C> <C>
Sales 334,831 1,198,707 (863,876) 2,697,881 2,155,065 542,816
Cost of Sales 590,616 1,280,618 (690,002) 2,199,938 1,837,443 362,495
--------------------------------------- ---------------------------------------
Gross Profit (255,785) (81,911) (173,874) 497,943 317,622 180,321
Selling, General, and Administrative 925,655 602,834 322,821 1,924,741 1,470,066 454,675
--------------------------------------- ---------------------------------------
Income From Operations (1,181,440) (684,745) (496,695) (1,426,798) (1,152,444) (274,354)
Other Income(Expense):
I/C Interest Income (Expense) (128,819) (130,399) 1,580 - - -
Interest Expense (7,880) (902) (6,978) (183,722) (243,969) 60,247
Interest Income 7,698 188 7,510 12,174 10,112 2,062
Gain (loss) on Asset Disposition (431,238) (2,459) (428,779) (431,238) (336) (430,902)
Other Expense (1,605,239) (1,977,125) 371,886 (1,699,216) (3,301,666) 1,602,450
Other Income 108 6,162 (6,054) 1,602 6,162 (4,560)
--------------------------------------- ---------------------------------------
Total Other Income (Expense) (2,165,370) (2,104,535) (60,835) (2,300,400) (3,529,697) 1,229,297
--------------------------------------- ---------------------------------------
Net Income (Loss) Before Bankruptcy
Administrative Expenses (3,346,810) (2,789,280) (557,530) (3,727,198) (4,682,141) 954,943
Bankruptcy Administrative Expenses - - - (410,000) (296,831) (113,169)
--------------------------------------- ---------------------------------------
Net Income (Loss) (3,346,810) (2,789,280) (557,530) (4,137,198) (4,978,972) 841,774
--------------------------------------- ---------------------------------------
</TABLE>
See accompanying note 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
JULY 31, 1997 JUNE 30, 1997 CHANGE
-------------- ------------- -----------
<S> <C> <C> <C>
Cash flows from operating activities:
Net income (loss) $ (4,137,198) $ (4,978,974) $ 841,776
Adjustments to reconcile net income (loss) to net cash
used in operating activities:
Depreciation 138,653 179,784 (41,131)
Equity in Losses in Subsidiaries 1,280,583 224,280 1,056,303
(Gain) Loss on sale of property and equipment 415,063 0 415,063
Change in certain assets & liabilities:
(Increase) decrease in:
Receivables (156,758) 257,354 (414,112)
Costs in excess of billings (418,786) 996,641 (1,415,427)
Inventory 540,310 499,449 40,861
Prepaids & other assets 215,334 (410,083) 625,417
Increase (decrease) in:
Accounts payable 179,885 (77,585) 257,470
Accrued expenses (123,746) 172,997 (296,743)
Billings in excess of costs (133,423) (481,740) 348,317
Other net changes in assets and liabilities 218,776 (174,979) 393,755
----------- ----------- -----------
Total adjustments 2,155,891 1,186,118 969,773
----------- ----------- -----------
Net cash provided by (used in) operating activities (1,981,307) (3,792,856) 1,811,549
Cash flows from investing activities:
Proceeds from sale of equipment 1,933,475 0 1,933,475
Additions to property and equipment (12,343) 0 (12,343)
----------- ----------- -----------
Net cash provided by (used in) investing activities 1,921,132 0 1,921,132
Cash flows from financing and other activities:
Net proceeds (repayments) from revolver credit loan 478,093 151,622 326,471
Repayment of long term obligations 0 (143,658) 143,658
Increase in pre petition liabilities 209,176 2,584,830 (2,375,654)
----------- ----------- -----------
Net cash provided by (used in) financing activities 687,269 2,592,794 (1,905,525)
----------- ----------- -----------
Net increase (decrease) in cash 627,094 (1,200,062) 1,827,156
CASH AT BEGINNING OF PERIOD 464,792 1,664,854 (1,200,062)
----------- ----------- -----------
CASH AT END OF PERIOD $ 1,091,886 $ 464,792 $ 627,094
----------- ----------- -----------
----------- ----------- -----------
</TABLE>
See accompanying note to financial statement information
<PAGE>
EXHIBIT 99.1
Omega Environmental, Inc.
Debtor in Possession Case # 97-06084
July 31, 1997 and June 30, 1997 Financial Reporting Information
Note to Financial Statement Information
The financial statement information for July and June 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.
