<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) December 24, 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 December 24, 1997, the Registrant filed unaudited financial
statement information as of and for each of the months ended
October 31, 1997 and September 30, 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
October 31, 1997 and September 30, 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: December 24, 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)
OCT 31, 1997 SEPT 30, 1997 OCT 31, 1997 SEPT 30, 1997
ESD ESD CHANGE PSD PSD CHANGE
------------ ------------- ---------- ----------- ---------- ---------
<S> <C> <C> <C> <C> <C> <C>
CURRENT ASSETS
Cash 2,193 32,010 (29,817) 17,549 221,978 (204,429)
Restricted cash held in escrow 2,614,801 2,596,886 17,915 - - -
Accounts receivable - -
A/R--trade 11,361,193 10,532,425 828,768 2,724,121 3,055,417 (331,296)
A/R--interco 8,757 148,219 (139,462) 102,425 174,337 (71,912)
A/R--employees 5,699 (2,031) 7,730 30,035 25,123 4,912
A/R--supplemental 1,385,610 1,122,742 262,868 -
A/R--misc. 94,850 14,442 80,408 - -
Allowance for doubtful accounts (2,129,138) (1,847,082) (282,056) (294,463) (274,344) (20,119)
------------ ------------- ---------- ----------- ---------- ---------
Accounts receivable, net 10,726,971 9,968,715 758,256 2,562,118 2,980,533 (418,415)
------------ ------------- ---------- ----------- ---------- ---------
Costs and earnings in excess of billings 7,389,421 8,185,514 (796,093) - - -
Prepaid expenses 39,585 33,936 5,649 122,824 103,586 19,238
Inventory 18,315 26,809 (8,494) 3,437,360 3,544,628 (107,268)
Inventory reserve - - - (924,118) (852,692) (71,426)
------------ ------------- ---------- ----------- ---------- ---------
Inventory, net 18,315 26,809 (8,494) 2,513,242 2,691,936 (178,694)
------------ ------------- ---------- ----------- ---------- ---------
Other current assets - - - - - -
------------ ------------- ---------- ----------- ---------- ---------
TOTAL CURRENT ASSETS 20,791,286 20,843,870 (52,584) 5,215,733 5,998,033 (782,300)
------------ ------------- ---------- ----------- ---------- ---------
PROPERTY AND EQUIPMENT
Field equipment 2,115,519 2,100,017 15,502 321,020 237,825 83,195
Automotive equipment 937,976 895,569 42,407 619,626 619,626 -
Office furniture and equipment 791,692 790,897 795 895,500 873,193 22,307
Equipment under capital leases - -
Leasehold improvements 90,823 90,823 37,993 37,993 -
------------ ------------- ---------- ----------- ---------- ---------
TOTAL PROPERTY & EQUIP., AT COST 3,936,010 3,877,306 58,704 1,874,139 1,768,637 105,502
Accum. Depreciation (2,211,521) (2,129,493) (82,028) (940,221) (881,372) (58,849)
------------ ------------- ---------- ----------- ---------- ---------
TOTAL PROPERTY & EQUIP., NET 1,724,489 1,747,813 (23,324) 933,918 887,265 46,653
------------ ------------- ---------- ---------- ---------- ---------
Long-term receivable - Other (Texas) 931,981 814,814 117,167 - - -
Other Assets 159,435 156,258 3,177 - - -
Investment & Intercompany in Subsidiaires - - - - - -
------------ ------------- ---------- ----------- ---------- ---------
TOTAL ASSETS 23,607,191 23,562,755 44,436 6,149,651 6,885,298 (735,647)
------------ ------------- ---------- ----------- ---------- ---------
------------ ------------- ---------- ----------- ---------- ---------
POST PETITION CURRENT LIABILITIES
Accounts payable 263,401 318,784 (55,383) 173,066 221,198 (48,132)
Line of Credit - - - - - -
Accrued expenses, excluding bankruptcy costs 544,390 495,502 48,888 611,117 515,652 95,465
Accrued bankruptcy costs - - - - -
Estimated claims against cash held in escrow 2,560,602 2,560,602 - - -
Billings in excess of costs & earnings - - - - - -
Current portion of long term debt - - - - - -
Intercompany - BNYFC 8,688,044 8,184,452 503,592 7,479,565 7,514,758 (35,193)
Intercompany payables 39,584 15,109 24,475 119,217 43,543 75,674
------------ ------------- ---------- ----------- ---------- ---------
TOTAL POST PETITION CURRENT LIABILITIES 12,096,021 11,574,449 521,572 8,382,965 8,295,151 87,814
Intercompany - BNYFC - - - - - -
Intercompany Notes Payable 8,741,768 8,741,768 - - - -
Pre Petition Liabilities 2,489,795 2,565,465 (75,670) 975,665 1,025,286 (49,621)
Pre Petition Estimated Construction Claims - - - -
------------ ------------- ---------- ----------- ---------- ---------
TOTAL LIABILITIES 23,327,584 22,881,682 445,902 9,358,630 9,320,437 38,193
------------ ------------- ---------- ----------- ---------- ---------
SHAREHOLDERS' EQUITY
Common stock at par 3,371,172 3,371,172 -
Additional paid in capital 17,791,864 17,791,864 10,742,189 10,742,189 -
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 (1,921,983) (1,520,516) (401,467) (2,307,224) (1,533,384) (773,840)
TOTAL SHAREHOLDERS' EQUITY 279,607 681,073 (401,467) (3,208,979) (2,435,139) (773,840)
------------ ------------- ---------- ---------- ---------- ----------
TOTAL LIABILITIES & SHAREHOLDERS' EQUITY 23,607,191 23,562,755 44,436 6,149,651 6,885,298 (735,647)
------------ ------------- ---------- ----------- ---------- ----------
------------ ------------- ---------- ----------- ---------- ----------
</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) OCT 31, 1997 SEPT 30, 1997
OCT 31, 1997 SEPT 30, 1997 CONTINUING CONTINUING
CORPORATE CORPORATE CHANGE OPERATIONS OPERATIONS CHANGE
------------ ------------- ----------- ------------ ------------ ----------
<S> <C> <C> <C> <C> <C> <C>
CURRENT ASSETS
Cash 108,009 11,494 96,515 127,751 265,482 (137,731)
Restricted cash held in escrow - - - 2,614,801 2,596,886 17,915
Accounts receivable -
A/R--trade 144,431 144,321 110 14,229,745 13,732,163 497,582
A/R--interco - - - 111,182 322,556 (211,374)
A/R--employees - - - 35,734 23,092 12,642
A/R--supplemental - - - 1,385,610 1,122,742 262,868
A/R--misc. 1,076,094 1,076,094 - 1,170,944 1,090,536 80,408
Allowance for doubtful accounts (1,138,467) (1,138,467) - (3,562,068) (3,259,893) (302,175)
------------ ------------- ----------- ------------ ------------ ----------
Accounts receivable, net 82,058 81,948 110 13,371,147 13,031,196 339,951
------------ ------------- ----------- ------------ ------------ ----------
Costs and earnings in excess of billings - - - 7,389,421 8,185,514 (796,093)
Prepaid expenses 475,232 365,839 109,393 637,641 503,361 134,280
Inventory - - - 3,455,675 3,571,437 (115,762)
Inventory reserve - - - (924,118) (852,692) (71,426)
------------ ------------- ----------- ------------ ------------ ----------
Inventory, net - - - 2,531,557 2,718,745 (187,188)
------------ ------------- ----------- ------------ ------------ ----------
Other current assets - 182 (182) - 182 (182)
------------ ------------- ----------- ------------ ------------ ----------
TOTAL CURRENT ASSETS 665,299 459,463 205,836 26,672,318 27,301,366 (629,048)
------------ ------------- ----------- ------------ ------------ ----------
PROPERTY AND EQUIPMENT
Field equipment - - - 2,436,539 2,337,842 98,697
Automotive equipment - - - 1,557,602 1,515,195 42,407
Office furniture and equipment 311,292 401,225 (89,933) 1,998,484 2,065,315 (66,831)
Equipment under capital leases - - - -
Leasehold improvements 21,780 21,780 - 150,596 150,596
------------ ------------- ----------- ------------ ------------ ----------
TOTAL PROPERTY & EQUIP., AT COST 333,072 423,005 (89,933) 6,143,221 6,068,948 74,273
Accum. Depreciation (267,386) (349,530) 82,144 (3,419,128) (3,360,395) (58,733)
------------ ------------- ----------- ------------ ------------ ----------
TOTAL PROPERTY & EQUIP., NET 65,686 73,475 (7,789) 2,724,093 2,708,553 15,540
------------ ------------- ----------- ------------ ------------ ----------
Long-term receivable - Other (Texas) - - - 931,981 814,814 117,167
Other Assets 475,838 487,914 (12,076) 635,273 644,172 (8,899)
Investment & Intercompany in Subsidiaires 74,785,283 78,490,636 (3,705,353) 74,785,283 78,490,636 (3,705,353)
------------ ------------- ----------- ------------ ------------ ----------
TOTAL ASSETS 75,992,106 79,511,488 (3,519,382) 105,748,948 109,959,541 (4,210,593)
------------ ------------- ----------- ------------ ------------ ----------
------------ ------------- ----------- ------------ ------------ ----------
POST PETITION CURRENT LIABILITIES
Accounts payable 166,790 142,452 24,338 603,257 682,434 (79,177)
Line of Credit 20,243,285 18,895,177 1,348,108 20,243,285 18,895,177 1,348,108
Accrued expenses, excluding bankruptcy costs 569,387 506,183 63,204 1,724,894 1,517,337 207,557
Accrued bankruptcy costs 1,822,174 1,757,864 64,310 1,822,174 1,757,864 64,310
Estimated claims against cash held in escrow - - - 2,560,602 2,560,602 -
Billings in excess of costs & earnings - - - - - -
Current portion of long term debt - - - - - -
Intercompany - BNYFC - - - 16,167,609 15,699,210 468,399
Intercompany payables 2,418 (79) 2,497 161,219 58,573 102,646
------------ ------------- ----------- ------------ ------------ ----------
TOTAL POST PETITION CURRENT LIABILITIES 22,804,054 21,301,597 1,502,457 43,283,040 41,171,197 2,111,843
Intercompany - BNYFC (20,888,536) (20,202,456) (686,080) (20,888,536) (20,202,456) (686,080)
Intercompany Notes Payable - - - 8,741,768 8,741,768 -
Pre Petition Liabilities 2,549,737 2,548,870 867 6,015,197 6,139,621 (124,424)
Pre Petition Estimated Construction Claims - - - - -
------------ ------------- ----------- ------------ ------------ ----------
TOTAL LIABILITIES 4,465,255 3,648,011 817,244 37,151,469 35,850,130 1,301,339
------------ ------------- ----------- ------------ ------------ ----------
SHAREHOLDERS' EQUITY
Common stock at par 121,289 121,289 - 3,492,461 3,492,461 -
Additional paid in capital 128,204,630 128,204,630 - 156,738,683 156,738,683
Treasury Stock A-P-I-C (562,506) (562,506) - (562,506) (562,506) -
Retained earnings - prior (49,321,103) (45,592,618) (3,728,485) (79,652,104) (75,923,619) (3,728,485)
Y-T-D net income pre petition (895,498) (895,498) - (1,169,888) (1,169,888) -
Y-T-D net income post petition (6,019,961) (5,411,820) (608,141) (10,249,168) (8,465,720) (1,783,448)
------------ ------------- ----------- ------------ ------------ ----------
TOTAL SHAREHOLDERS' EQUITY 71,526,851 75,863,477 (4,336,626) 68,597,479 74,109,411 (5,511,933)
------------ ------------- ----------- ------------ ------------ ----------
TOTAL LIABILITIES & SHAREHOLDERS' EQUITY 75,992,106 79,511,488 (3,519,382) 105,748,948 109,959,541 (4,210,593)
------------ ------------- ----------- ------------ ------------ ----------
------------ ------------- ----------- ------------ ------------ ----------
</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)
OCT 31, 1997 SEPT 30, 1997 OCT 31, 1997 SEPT 30, 1997
DISCONTINUED DISCONTINUED COMBINED COMBINED
OPERATIONS OPERATIONS CHANGE FINAL FINAL CHANGE
--------------- --------------- ------------ ------------- --------------- -------------
<S> <C> <C> <C> <C> <C> <C>
CURRENT ASSETS
Cash 59,900 115,483 (55,583) 187,651 380,965 (193,314)
Restricted cash held in escrow - - - 2,614,801 2,596,886 17,915
Accounts receivable
A/R--trade 8,536,784 9,400,646 (863,862) 22,766,529 23,132,809 (366,280)
A/R--interco 170,937 76,899 94,038 - - -
A/R--employees 2,284 1,123 1,161 38,018 24,215 13,803
A/R--supplemental - 1,385,610 1,122,742 262,868
A/R--misc. 197,240 244,255 (47,015) 1,368,184 1,334,791 33,393
Allowance for doubtful accounts (3,220,602) (3,225,346) 4,744 (6,782,670) (6,485,239) (297,431)
--------------- --------------- ------------ ------------- --------------- -------------
Accounts receivable, net 5,686,642 6,497,577 (810,935) 18,775,670 19,129,318 (353,648)
--------------- --------------- ------------ ------------- --------------- -------------
Costs and earnings in excess of billings - 94,256 (94,256) 7,389,421 8,279,770 (890,349)
Prepaid expenses 10,587 47,450 (36,863) 648,228 550,811 97,417
Inventory 1,965,839 2,342,336 (376,497) 5,421,514 5,913,773 (492,259)
Inventory reserve (1,851,428) (2,127,925) 276,497 (2,775,546) (2,980,617) 205,071
--------------- --------------- ------------ ------------- --------------- -------------
Inventory, net 114,411 214,411 (100,000) 2,645,968 2,933,156 (287,188)
--------------- --------------- ------------ ------------- --------------- -------------
Other current assets 31,230 31,606 (376) 31,230 31,788 (558)
--------------- --------------- ------------ ------------- --------------- -------------
TOTAL CURRENT ASSETS 5,902,770 7,000,783 (1,098,013) 32,292,969 33,902,694 (1,609,725)
--------------- --------------- ------------ ------------- --------------- -------------
PROPERTY AND EQUIPMENT
Field equipment 315,461 430,262 (114,801) 2,752,000 2,768,104 (16,104)
Automotive equipment 139,394 338,953 (199,559) 1,696,996 1,854,148 (157,152)
Office furniture and equipment 478,280 499,693 (21,413) 2,476,764 2,565,008 (88,244)
Equipment under capital leases - -
Leasehold improvements 189,519 199,949 (10,430) 340,115 350,545 (10,430)
--------------- --------------- ------------ ------------- --------------- -------------
TOTAL PROPERTY & EQUIP., AT COST 1,122,653 1,468,857 (346,204) 7,265,875 7,537,805 (271,930)
Accum. Depreciation (970,192) (1,193,857) 223,665 (4,389,320) (4,554,252) 164,932
--------------- --------------- ------------ ------------- --------------- -------------
TOTAL PROPERTY & EQUIP., NET 152,462 275,000 (122,538) 2,876,555 2,983,553 (106,998)
--------------- --------------- ------------ ------------- --------------- -------------
Long-term receivable - Other (Texas) - - - 931,981 814,814 117,167
Other Assets 20,811 20,759 52 656,084 676,053 (19,969)
Investment & Intercompany in Subsidiaires - - - 425,000 425,000 -
--------------- --------------- ------------ ------------- --------------- -------------
TOTAL ASSETS 6,076,043 7,296,542 (1,220,499) 37,182,590 38,802,114 (1,619,524)
--------------- --------------- ------------ ------------- --------------- -------------
--------------- --------------- ------------ ------------- --------------- -------------
POST PETITION CURRENT LIABILITIES
Accounts payable 65,207 128,076 (62,869) 668,462 810,510 (142,048)
Line of Credit - - - 20,243,285 18,895,177 1,348,108
Accrued expenses, excluding
bankruptcy costs 52 72,663 (72,611) 1,724,946 1,590,000 134,946
Accrued bankruptcy costs - - - 1,822,174 1,757,864 64,310
Estimated claims against cash held
in escrow - - - 2,560,602 2,560,602 -
Billings in excess of costs & earnings - 24,840 (24,840) - 24,840 (24,840)
Current portion of long term debt - - - - - -
Intercompany - BNYFC 4,720,928 4,503,246 217,682 - - -
Intercompany payables 120,898 340,522 (219,624) - - -
--------------- --------------- ------------ ------------- --------------- -----------
TOTAL POST PETITION CURRENT LIABILITIES 4,907,084 5,069,347 (162,263) 27,019,469 25,638,993 1,380,476
Intercompany - BNYFC - - -
Intercompany Notes Payable 2,535,455 2,535,455 - - -
Pre Petition Liabilities 10,919,121 11,650,222 (731,101) 16,934,318 17,789,843 (855,525)
Pre Petition Estimated Construction Claims 2,904,000 2,904,000 - 2,904,000 2,904,000 -
--------------- --------------- ------------ ------------- --------------- -----------
TOTAL LIABILITIES 21,265,660 22,159,024 (893,364) 46,857,787 46,332,836 524,951
--------------- --------------- ------------ ------------- --------------- -----------
SHAREHOLDERS' EQUITY
Common stock at par 2,082,948 2,082,948 - 121,289 121,289 -
Additional paid in capital 25,370,632 25,370,632 124,480,376 124,480,376
Treasury Stock A-P-I-C - - - (562,506) (562,506) -
Retained earnings - prior (32,353,339) (32,353,339) (112,005,443) (111,988,497) (16,946)
Y-T-D net income pre petition (676,048) (676,048) - (1,845,936) (1,845,936) -
Y-T-D net income post petition (9,613,810) (9,286,675) (327,135) (19,862,977) (17,735,448) (2,127,529)
TOTAL SHAREHOLDERS' EQUITY (15,189,617) (14,862,482) (327,135) (9,675,197) (7,530,722) (2,144,475)
--------------- --------------- ------------ ------------- --------------- -----------
TOTAL LIABILITIES & SHAREHOLDERS' EQUITY 6,076,043 7,296,542 (1,220,499) 37,182,590 38,802,114 (1,619,524)
--------------- --------------- ------------ ------------- --------------- -----------
--------------- --------------- ------------ ------------- --------------- -----------
</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
OCT 31, 1997 SEPT 30, 1997 OCT 31, 1997 SEPT 30, 1997
ESD ESD CHANGE PSD PSD CHANGE
--------------- ---------------- ------------ ------------- -------------- -----------
<S> <C> <C> <C> <C> <C> <C>
Sales 1,201,399 1,360,487 (159,088) 918,308 919,835 (1,527)
Cost of Sales 746,428 856,943 (110,515) 998,015 773,044 224,971
--------------- ---------------- ------------ ------------- -------------- -----------
Gross Profit 454,971 503,544 (48,573) (79,707) 146,791 (226,498)
Selling, General, and Administrative 425,411 457,259 (31,848) 234,893 302,588 (67,695)
--------------- ---------------- ------------ ------------- -------------- -----------
Income From Operations 29,560 46,285 (16,725) (314,600) (155,797) (158,803)
Other Income(Expense):
I/C Interest Income (Expense) (82,318) (79,781) (2,537) (72,988) (70,342) (2,646)
Interest Expense (1,774) (4,141) 2,367 - - -
Interest Income - - - - - -
Gain (loss) on Asset Disposition (56) - (56) (14,214) - (14,214)
Amortization / Write-off of Goodwill - - - - - -
Other Expense (347,946) (60,256) (287,690) (372,038) (14,836) (357,202)
Other Income 1,067 - 1,067 - - -
--------------- ---------------- ------------ ------------- -------------- -----------
Total Other Income (Expense) (431,027) (144,178) (286,849) (459,240) (85,178) (374,062)
--------------- ---------------- ------------ ------------- -------------- -----------
Net Income (Loss) Before Bankruptcy
Administrative Expenses (401,467) (97,893) (303,574) (773,840) (240,975) (532,865)
Bankruptcy Administrative Expenses -
--------------- ---------------- ------------ ------------- -------------- -----------
Net Income (Loss) (401,467) (97,893) (303,574) (773,840) (240,975) (532,865)
--------------- ---------------- ------------ ------------- -------------- -----------
--------------- ---------------- ------------ ------------- -------------- -----------
</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 OCT 31, 1997 SEPT 30, 1997
OCT 31, 1997 SEPT 30, 1997 CONTINUING CONTINUING
CORPORATE CORPORATE CHANGE OPERATIONS OPERATIONS CHANGE
-------------- ----------------- -------------- ------------- ---------------- ----------
<S> <C> <C> <C> <C> <C> <C>
Sales - - - 2,119,707 2,280,322 (160,615)
Cost of Sales - - - 1,744,443 1,629,987 114,456
-------------- ----------------- -------------- ------------- ---------------- ----------
Gross Profit - - - 375,264 650,335 (275,071)
Selling, General, and Administrative 382,340 404,671 (22,331) 1,042,644 1,164,518 (121,874)
-------------- ----------------- -------------- ------------- ---------------- ----------
Income From Operations (382,340) (404,671) 22,331 (667,380) (514,183) (153,197)
Other Income(Expense):
I/C Interest Income (Expense) 155,306 150,123 5,183 - - -
Interest Expense (181,196) (174,575) (6,621) (182,970) (178,716) (4,254)
Interest Income 1,476 - 1,476 1,476 - 1,476
Gain (loss) on Asset Disposition - - - (14,270) - (14,270)
Amortization / Write-off of Goodwill - - - - -
Other Expense (154,023) (24,106) (129,917) (874,007) (99,198) (774,809)
Other Income - 400 (400) 1,067 400 667
-------------- ----------------- -------------- ------------- ---------------- ----------
Total Other Income (Expense) (178,437) (48,158) (130,279) (1,068,704) (277,514) (791,190)
-------------- ----------------- -------------- ------------- ---------------- ----------
Net Income (Loss) Before Bankruptcy
Administrative Expenses (560,777) (452,829) (107,948) (1,736,084) (791,697) (944,387)
Bankruptcy Administrative Expenses (64,310) (335,000) 270,690 (64,310) (335,000) 270,690
-------------- ----------------- -------------- ------------- ---------------- ----------
Net Income (Loss) (625,087) (787,829) 162,742 (1,800,394) (1,126,697) (673,697)
-------------- ----------------- -------------- ------------- ---------------- ----------
-------------- ----------------- -------------- ------------- ---------------- ----------
</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
OCT 31, 1997 SEPT 30, 1997 OCT 31, 1997 SEPT 30, 1997
DISCONTINUED DISCONTINUED COMBINED COMBINED
OPERATIONS OPERATIONS CHANGE FINAL FINAL CHANGE
--------------- ----------------- ------------- ------------- ---------------- -----------
<S> <C> <C> <C> <C> <C> <C>
Sales 195,597 56,640 138,957 2,154,527 2,115,582 38,945
Cost of Sales 166,589 548,900 (382,311) 1,750,255 1,957,507 (207,252)
--------------- ----------------- ------------- ------------- ---------------- -----------
Gross Profit 29,008 (492,260) 521,268 404,272 158,075 246,197
Selling, General, and Administrative 304,450 247,493 56,957 1,347,094 1,412,011 (64,917)
--------------- ----------------- ------------- ------------- ---------------- -----------
Income From Operations (275,441) (739,753) 464,312 (942,821) (1,253,936) 311,115
Other Income(Expense):
I/C Interest Income (Expense) - - - - - -
Interest Expense (24) (2,031) 2,007 (182,994) (180,747) (2,247)
Interest Income - 6,972 (6,972) 1,476 6,972 (5,496)
Gain (loss) on Asset Disposition (17,705) 47,432 (65,137) (31,975) 47,432 (79,407)
Amortization / Write-off of Goodwill - - - - - -
Other Expense (141,994) (2,155,591) 2,013,597 (1,016,001) (2,254,789) 1,238,788
Other Income 108,029 7,193 100,836 109,096 7,593 101,503
--------------- ----------------- ------------- ------------- ---------------- -----------
Total Other Income (Expense) (51,694) (2,096,025) 2,044,331 (1,120,398) (2,373,539) 1,253,141
------------- ---------------- -----------
Net Income (Loss) Before Bankruptcy
Administrative Expenses (327,135) (2,835,778) 2,508,643 (2,063,219) (3,627,475) 1,564,256
Bankruptcy Administrative Expenses - (64,310) (335,000) 270,690
--------------- ----------------- ------------- ------------- ---------------- -----------
Net Income (Loss) (327,135) (2,835,778) 2,508,643 (2,127,529) (3,962,475) 1,834,946
--------------- ----------------- ------------- ------------- ---------------- -----------
--------------- ----------------- ------------- ------------- ---------------- -----------
</TABLE>
See accompanying notes to financial statement information.
<PAGE>
OMEGA ENVIRONMENTAL, INC.
DEBTOR IN POSSESSION CASE # 97 - 06084
COMPARATIVE COMBINED STATEMENT OF CASH FLOWS INFORMATION
<TABLE>
<CAPTION>
(UNAUDITED) (UNAUDITED)
MONTH ENDED MONTH ENDED
OCTOBER 31, 1997 SEPT 30, 1997 CHANGE
----------------- -------------- --------------
<S> <C> <C> <C>
Cash flows from operating activities:
Net loss ($2,127,529) ($3,962,477) $1,834,948
Adjustments to reconcile net loss to net cash
(used in) provided by operating activities:
Depreciation 110,144 111,616 (1,472)
Additional Inventory Reserves in Discontinued Operations 0 1,313,984 (1,313,984)
Write down of property and equipment in Discontinued Operations 0 614,548 (614,548)
(Gain) Loss on sale of property and equipment 31,975 (47,432) 79,407
Change in certain assets & liabilities:
(Increase) decrease in:
Receivables 353,648 3,016,476 (2,662,828)
Costs in excess of billings 890,349 397,781 492,568
Inventory 287,188 155,147 132,041
Prepaids & other assets (96,859) (136,434) 39,575
Increase (decrease) in:
Accounts payable (142,048) 129,617 (271,665)
Accrued expenses 199,256 494,213 (294,957)
Billings in excess of costs (24,840) 13,972 (38,812)
Other net changes in assets and liabilities (132,059) 23,478 (155,537)
----------------- -------------- --------------
Total adjustments 1,476,753 6,086,966 (4,610,213)
----------------- -------------- --------------
Net cash provided by (used in) operating activities (650,776) 2,124,489 (2,775,265)
Cash flows from investing activities :
Proceeds from sale of equipment 6,150 114,709 (108,559)
Additions to property and equipment (41,271) (22,919) (18,352)
----------------- -------------- --------------
Net cash provided by (used in) investing activities (35,121) 91,790 (126,911)
Cash flows from financing and other activities:
Net proceeds (repayments) from revolver credit loan 1,348,108 (1,203,194) 2,551,302
Increase (decrease) in pre petition liabilities (855,525) (989,936) 134,411
----------------- -------------- --------------
Net cash provided by (used in) financing activities 492,583 (2,193,130) 2,685,713
----------------- -------------- --------------
Net increase (decrease) in cash (193,314) 23,149 (216,463)
CASH AT BEGINNING OF PERIOD 380,965 357,816 23,149
----------------- -------------- --------------
CASH AT END OF PERIOD $187,651 $380,965 ($193,314)
----------------- -------------- --------------
----------------- -------------- --------------
</TABLE>
See accompanying notes to financial statement information.
<PAGE>
EXHIBIT 99.1
Omega Environmental, Inc.
Debtor in Possession Case # 97-06084
October 31, 1997 Financial Reporting Information
Notes to Financial Statement Information
The financial statement information presented 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 October 31, 1997, the Company's borrowings under the
debtor-in-possession financing agreement with BNY Financial Corporation
("BNYFC") were $20,243,285 which exceeded the $17,000,000 borrowing limit in
the debtor-in-possession financing agreement by $3,243,285. Additionally,
the Company's borrowings exceeded the collateral formula by $11,410,000. The
Company is currently negotiating with BNFYC to extend the
debtor-in-possession financing agreement which expires December 31, 1997.
