<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) October 29, 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
INCORPORATION OR ORGANIZATION) IDENTIFICATION NO.)
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
LITIGATION
On October 29, 1997, a three judge panel of the Ninth Circuit Court
of Appeals, by a two to one vote, reversed a $27,000,000 judgment in
favor of the Registrant in its antitrust action against Gilbarco,
Inc., a division of General Electric PLC of the United Kingdom. The
antitrust action was filed by the registrant in 1994 in response to
Gilbarco's canceling its distributorship with two of Registrant's
operations. A jury in the Federal District Court for Western
Washington ruled in favor of Registrant in a trial which concluded in
1995.
Registrant is reviewing the current decision and investigating its
options with respect to pursuing its claims. Registrant has the
right to seek reconsideration by the Court of Appeals panel, seek
a rehearing by the entire Ninth Circuit Court of Appeals "en banc",
or petition the United States Supreme Court to review the case.
Whatever action Registrant may take in pursuing its claims, no
assurance can be given as the ultimate outcome of the case.
The case in OMEGA ENVIRONMENTAL, INC., ET AL., V. GILBARCO, INC.
(No. 96-35172 in the Ninth Circuit).
UNAUDITED FINANCIAL STATEMENT INFORMATION
On October 31, 1997, the Registrant filed unaudited financial
statement information as of and for each of the months ended September
30, 1997 and August 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
September 30, 1997 and August 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: November 4, 1997 /s/ Bradley S. Powell
---------------------------------------
Bradley S. Powell
Vice President/Corporate Controller
<PAGE>
OMEGA ENVIRONMENTAL, INC.
DEBTOR IN POSESSION CASE #97-06084
COMPARATIVE BALANCE SHEET INFORMATION
Exhibit 99.4
<TABLE>
<CAPTION>
(UNAUDITED) (UNAUDITED)
SEPT 30, 1997 AUGUST 31, 1997
ESD ESD CHANGE
--------------------------------------------
<S> <C> <C> <C>
CURRENT ASSETS
Cash 32,010 23,978 8,032
Restricted Cash Held In Escrow 2,596,886 2,596,886 -
Accounts Receivable
A/R--Trade 10,532,425 10,841,432 (309,007)
A/R--Interco 148,219 37,224 110,995
A/R--Employees (2,031) 7,791 (9,822)
A/R--Supplemental 1,122,742 871,302 251,440
A/R--Misc. 14,442 27,364 (12,922)
Allowance For Doubtful Accounts (1,847,082) (1,688,893) (158,189)
--------------------------------------------
Accounts Receivable, Net 9,968,715 10,096,220 (127,505)
--------------------------------------------
Costs And Earnings In Excess Of Billings 8,185,514 8,123,970 61,544
Prepaid Expenses 33,936 56,127 (22,191)
Inventory 26,809 40,575 (13,766)
Inventory Reserve - - -
--------------------------------------------
Inventory, Net 26,809 40,575 (13,766)
--------------------------------------------
Other Current Assets - - -
--------------------------------------------
TOTAL CURRENT ASSETS 20,843,870 20,937,756 (93,886)
--------------------------------------------
PROPERTY AND EQUIPMENT
Field Equipment 2,100,017 2,093,581 6,436
Automotive Equipment 895,569 895,569 -
Office Furniture And Equipment 790,897 788,013 2,884
Equipment Under Capital Leases -
Leasehold Improvements 90,823 90,823 -
--------------------------------------------
TOTAL PROPERTY & EQUIP., AT COST 3,877,306 3,867,986 9,320
Accum. Depreciation (2,129,493) (2,068,992) (60,501)
--------------------------------------------
TOTAL PROPERTY & EQUIP., NET 1,747,813 1,798,994 (51,181)
--------------------------------------------
Long-Term Receivable - Other (Texas) 814,814 814,814 -
Other Assets 156,258 166,478 (10,220)
Investment & Intercompany In Subsidiaires - - -
--------------------------------------------
TOTAL ASSETS 23,562,755 23,718,042 (155,287)
--------------------------------------------
--------------------------------------------
POST PETITION CURRENT LIABILITIES
Accounts Payable 318,784 253,654 65,130
Line Of Credit - - -
Accrued Expenses, Excluding Bankruptcy Costs 495,502 446,192 49,310
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 8,184,452 8,216,459 (32,007)
Intercompany Payables 15,109 210,101 (194,992)
--------------------------------------------
TOTAL POST PETITION CURRENT LIABILITIES 11,574,449 11,687,008 (112,559)
Intercompany - BNYFC - - -
Intercompany Notes Payable 8,741,768 8,741,768 -
Pre Petition Liabilities 2,565,465 2,510,300 55,165
Pre Petition Estimated Construction Claims - - -
--------------------------------------------
TOTAL LIABILITIES 22,881,682 22,939,076 (57,394)
--------------------------------------------
SHAREHOLDERS' EQUITY
Common Stock At Par - - -
Additional Paid In Capital 17,791,864 17,791,864 -
Treasury Stock A-P-I-C - - -
Retained Earnings - Prior (15,563,779) (15,563,779) -
Y-T-D Net Income Pre Petition (26,496) (26,496) -
Y-T-D Net Income Post Petition (1,520,516) (1,422,623) (97,893)
--------------------------------------------
TOTAL SHAREHOLDERS' EQUITY 681,073 778,966 (97,893)
--------------------------------------------
TOTAL LIABILITIES & SHAREHOLDERS' EQUITY 23,562,755 23,718,042 (155,287)
--------------------------------------------
--------------------------------------------
<CAPTION>
(UNAUDITED) (UNAUDITED)
SEPT 30, 1997 AUGUST 31, 1997
PSD PSD CHANGE
--------------------------------------------
<S> <C> <C> <C>
CURRENT ASSETS
Cash 221,978 - 221,978
Restricted cash held in escrow - - -
Accounts receivable
A/R--trade 3,055,417 3,560,813 (505,396)
A/R--interco 174,337 170,775 3,562
A/R--employees 25,123 20,726 4,397
A/R--supplemental -
A/R--misc. - - -
Allowance for doubtful accounts (274,344) (195,462) (78,882)
--------------------------------------------
Accounts receivable, net 2,980,533 3,556,852 (576,319)
--------------------------------------------
Costs and earnings in excess of billings - - -
Prepaid expenses 103,586 139,161 (35,575)
Inventory 3,544,628 3,302,454 242,174
Inventory reserve (852,692) (890,385) 37,693
--------------------------------------------
Inventory, net 2,691,936 2,412,069 279,867
--------------------------------------------
Other current assets - - -
--------------------------------------------
TOTAL CURRENT ASSETS 5,998,033 6,108,082 (110,049)
--------------------------------------------
PROPERTY AND EQUIPMENT
Field equipment 237,825 237,825 -
Automotive equipment 619,626 620,425 (799)
Office furniture and equipment 873,193 857,925 15,268
Equipment under capital leases -
Leasehold improvements 37,993 37,993 -
--------------------------------------------
TOTAL PROPERTY & EQUIP., AT COST 1,768,637 1,754,168 14,469
Accum. Depreciation (881,372) (856,749) (24,623)
--------------------------------------------
TOTAL PROPERTY & EQUIP., NET 887,265 897,419 (10,154)
--------------------------------------------
Long-term receivable - Other (Texas) - - -
Other Assets - - -
Investment & Intercompany in Subsidiaires - - -
--------------------------------------------
TOTAL ASSETS 6,885,298 7,005,501 (120,203)
--------------------------------------------
--------------------------------------------
POST PETITION CURRENT LIABILITIES
Accounts payable 221,198 164,478 56,720
Line of Credit - - -
Accrued expenses, excluding bankruptcy costs 515,652 311,461 204,191
Accrued bankruptcy costs - - -
Estimated claims against cash held in escrow - - -
Billings in excess of costs & earnings - - -
Current portion of long term debt - - -
Intercompany - BNYFC 7,514,758 7,242,789 271,969
Intercompany payables 43,543 248,621 (205,078)
--------------------------------------------
TOTAL POST PETITION CURRENT LIABILITIES 8,295,151 7,967,349 327,802
Intercompany - BNYFC - - -
Intercompany Notes Payable - - -
Pre Petition Liabilities 1,025,286 1,232,316 (207,030)
Pre Petition Estimated Construction Claims - - -
--------------------------------------------
TOTAL LIABILITIES 9,320,437 9,199,665 120,772
--------------------------------------------
SHAREHOLDERS' EQUITY
Common stock at par -
Additional paid in capital 14,113,361 14,113,361 -
Treasury Stock A-P-I-C - - -
Retained earnings - prior (14,767,222) (14,767,222) -
Y-T-D net income pre petition (247,894) (247,894) -
Y-T-D net income post petition (1,533,384) (1,292,409) (240,975)
--------------------------------------------
TOTAL SHAREHOLDERS' EQUITY (2,435,139) (2,194,164) (240,975)
--------------------------------------------
TOTAL LIABILITIES & SHAREHOLDERS' EQUITY 6,885,298 7,005,501 (120,203)
--------------------------------------------
--------------------------------------------
</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)
SEPT 30, 1997 AUGUST 31, 1997
CORPORATE CORPORATE CHANGE
--------------------------------------------
<S> <C> <C> <C>
CURRENT ASSETS
Cash 11,494 221,984 (210,490)
Restricted cash held in escrow - - -
Accounts receivable
A/R--trade 144,321 145,652 (1,331)
A/R--interco - - -
A/R--employees - - -
A/R--supplemental -
A/R--misc. 1,076,094 1,156,362 (80,268)
Allowance for doubtful accounts (1,138,467) (1,203,557) 65,090
--------------------------------------------
Accounts receivable, net 81,948 98,457 (16,509)
--------------------------------------------
Costs and earnings in excess of billings - - -
Prepaid expenses 365,839 159,251 206,588
Inventory - - -
Inventory reserve - - -
--------------------------------------------
Inventory, net - - -
--------------------------------------------
Other current assets 182 139 43
--------------------------------------------
TOTAL CURRENT ASSETS 459,463 479,831 (20,368)
--------------------------------------------
PROPERTY AND EQUIPMENT
Field equipment - - -
Automotive equipment - - -
Office furniture and equipment 401,225 401,225 -
Equipment under capital leases -
Leasehold improvements 21,780 21,780 -
--------------------------------------------
TOTAL PROPERTY & EQUIP., AT COST 423,005 423,005 -
Accum. Depreciation (349,530) (345,849) (3,681)
TOTAL PROPERTY & EQUIP., NET 73,475 77,156 (3,681)
--------------------------------------------
Long-term receivable - Other (Texas) - - -
Other Assets 487,914 486,189 1,725
Investment & Intercompany in Subsidiaires 78,490,636 78,490,636 -
--------------------------------------------
TOTAL ASSETS 79,511,488 79,533,812 (22,324)
--------------------------------------------
--------------------------------------------
POST PETITION CURRENT LIABILITIES
Accounts payable 142,452 61,807 80,645
Line of Credit 18,895,177 20,098,371 (1,203,194)
Accrued expenses, excluding bankruptcy costs 506,183 441,514 64,669
Accrued bankruptcy costs 1,757,864 1,422,864 335,000
Estimated claims against cash held in escrow - - -
Billings in excess of costs & earnings - - -
Current portion of long term debt - - -
Intercompany - BNYFC -
Intercompany payables (79) 360 (439)
-----------------------------------------
TOTAL POST PETITION CURRENT LIABILITIES 21,301,597 22,024,916 (723,319)
Intercompany - BNYFC (20,202,456) (21,694,916) 1,492,460
Intercompany Notes Payable - - -
Pre Petition Liabilities 2,548,870 2,552,506 (3,636)
Pre Petition Estimated Construction Claims - - -
-----------------------------------------
TOTAL LIABILITIES 3,648,011 2,882,506 765,505
-----------------------------------------
SHAREHOLDERS' EQUITY
Common stock at par 121,289 121,289 -
Additional paid in capital 128,204,631 128,204,631 -
Treasury Stock A-P-I-C (562,506) (562,506) -
Retained earnings - prior (45,592,619) (45,592,619) -
Y-T-D net income pre petition (895,498) (895,498) -
Y-T-D net income post petition (5,411,820) (4,623,991) (787,829)
-----------------------------------------
TOTAL SHAREHOLDERS' EQUITY 75,863,477 76,651,306 (787,829)
-----------------------------------------
TOTAL LIABILITIES & SHAREHOLDERS' EQUITY 79,511,488 79,533,812 (22,324)
-----------------------------------------
-----------------------------------------
<CAPTION>
(UNAUDITED) (UNAUDITED)
SEPT 30, 1997 AUGUST 31, 1997
CONTINUING CONTINUING
OPERATIONS OPERATIONS CHANGE
----------------------------------------------
<S> <C> <C> <C>
CURRENT ASSETS
Cash 265,482 245,962 19,520
Restricted cash held in escrow 2,596,886 2,596,886 -
Accounts receivable
A/R--trade 13,732,163 14,547,897 (815,734)
A/R--interco 322,556 207,999 114,557
A/R--employees 23,092 28,517 (5,425)
A/R--supplemental 1,122,742 871,302 251,440
A/R--misc. 1,090,536 1,183,726 (93,190)
Allowance for doubtful accounts (3,259,893) (3,087,912) (171,981)
----------------------------------------------
Accounts receivable, net 13,031,196 13,751,529 (720,333)
----------------------------------------------
Costs and earnings in excess of billings 8,185,514 8,123,970 61,544
Prepaid expenses 503,361 354,539 148,822
Inventory 3,571,437 3,343,029 228,408
Inventory reserve (852,692) (890,385) 37,693
----------------------------------------------
Inventory, net 2,718,745 2,452,644 266,101
----------------------------------------------
Other current assets 182 139 43
----------------------------------------------
TOTAL CURRENT ASSETS 27,301,366 27,525,669 (224,303)
----------------------------------------------
PROPERTY AND EQUIPMENT
Field equipment 2,337,842 2,331,406 6,436
Automotive equipment 1,515,195 1,515,994 (799)
Office furniture and equipment 2,065,315 2,047,163 18,152
Equipment under capital leases - - -
Leasehold improvements 150,596 150,596 -
----------------------------------------------
TOTAL PROPERTY & EQUIP., AT COST 6,068,948 6,045,159 23,789
Accum. Depreciation (3,360,395) (3,271,590) (88,805)
----------------------------------------------
TOTAL PROPERTY & EQUIP., NET 2,708,553 2,773,569 (65,016)
----------------------------------------------
Long-term receivable - Other (Texas) 814,814 814,814 -
Other Assets 644,172 652,667 (8,495)
Investment & Intercompany in Subsidiaires 78,490,636 78,490,636 -
----------------------------------------------
TOTAL ASSETS 109,959,541 110,257,355 (297,814)
----------------------------------------------
----------------------------------------------
POST PETITION CURRENT LIABILITIES
Accounts payable 682,434 479,939 202,495
Line of Credit 18,895,177 20,098,371 (1,203,194)
Accrued expenses, excluding bankruptcy costs 1,517,337 1,199,167 318,170
Accrued bankruptcy costs 1,757,864 1,422,864 335,000
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 15,699,210 15,459,248 239,962
Intercompany payables 58,573 459,082 (400,509)
TOTAL POST PETITION CURRENT LIABILITIES 41,171,197 41,679,273 (508,076)
Intercompany - BNYFC (20,202,456) (21,694,916) 1,492,460
Intercompany Notes Payable 8,741,768 8,741,768 -
Pre Petition Liabilities 6,139,621 6,295,122 (155,501)
Pre Petition Estimated Construction Claims - - -
----------------------------------------------
TOTAL LIABILITIES 35,850,130 35,021,247 828,883
----------------------------------------------
SHAREHOLDERS' EQUITY
Common stock at par 121,289 121,289 -
Additional paid in capital 160,109,856 160,109,856 -
Treasury Stock A-P-I-C (562,506) (562,506) -
Retained earnings - prior (75,923,620) (75,923,620) -
Y-T-D net income pre petition (1,169,888) (1,169,888) -
Y-T-D net income post petition (8,465,720) (7,339,023) (1,126,697)
----------------------------------------------
TOTAL SHAREHOLDERS' EQUITY 74,109,411 75,236,108 (1,126,697)
----------------------------------------------
TOTAL LIABILITIES & SHAREHOLDERS' EQUITY 109,959,541 110,257,355 (297,814)
----------------------------------------------
----------------------------------------------
</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)
SEPT 30, 1997 AUGUST 31, 1997
DISCONTINUED DISCONTINUED
OPERATIONS OPERATIONS CHANGE
----------------------------------------------
<S> <C> <C> <C>
CURRENT ASSETS
Cash 115,483 111,854 3,629
Restricted cash held in escrow - - -
Accounts receivable
A/R--trade 9,400,646 11,703,053 (2,302,407)
A/R--interco 76,899 471,813 (394,914)
A/R--employees 1,123 6,036 (4,913)
A/R--supplemental -
A/R--misc. 244,255 168,114 76,141
Allowance for doubtful accounts (3,225,346) (3,274,939) 49,593
----------------------------------------------
Accounts receivable, net 6,497,577 9,074,077 (2,576,500)
----------------------------------------------
Costs and earnings in excess of billings 94,256 553,581 (459,325)
Prepaid expenses 47,450 49,771 (2,321)
Inventory 2,342,336 2,763,584 (421,248)
Inventory reserve (2,127,925) (813,941) (1,313,984)
----------------------------------------------
Inventory, net 214,411 1,949,643 (1,735,232)
----------------------------------------------
Other current assets 31,606 41,855 (10,249)
----------------------------------------------
TOTAL CURRENT ASSETS 7,000,783 11,780,781 (4,779,998)
----------------------------------------------
PROPERTY AND EQUIPMENT
Field equipment 430,262 502,814 (72,552)
Automotive equipment 338,953 393,291 (54,338)
Office furniture and equipment 499,693 521,164 (21,471)
Equipment under capital leases -
Leasehold improvements 199,949 199,949 -
----------------------------------------------
TOTAL PROPERTY & EQUIP., AT COST 1,468,857 1,617,218 (148,361)
Accum. Depreciation (1,193,857) (636,712) (557,145)
----------------------------------------------
TOTAL PROPERTY & EQUIP., NET 275,000 980,506 (705,506)
----------------------------------------------
Long-term receivable - Other (Texas) - - -
Other Assets 20,759 35,885 (15,126)
Investment & Intercompany in Subsidiaires - - -
TOTAL ASSETS 7,296,542 12,797,172 (5,500,630)
----------------------------------------------
----------------------------------------------
POST PETITION CURRENT LIABILITIES
Accounts payable 128,076 200,954 (72,878)
Line of Credit - - -
Accrued expenses, excluding bankruptcy costs 72,663 231,620 (158,957)
Accrued bankruptcy costs - - -
Estimated claims against cash held in escrow - - -
Billings in excess of costs & earnings 24,840 10,868 13,972
Current portion of long term debt - - -
Intercompany - BNYFC 4,503,246 6,235,592 (1,732,346)
Intercompany payables 340,522 220,729 119,793
----------------------------------------------
TOTAL POST PETITION CURRENT LIABILITIES 5,069,347 6,899,763 (1,830,416)
Intercompany - BNYFC - - -
Intercompany Notes Payable 2,535,455 2,535,455 -
Pre Petition Liabilities 11,650,222 12,388,657 (738,435)
Pre Petition Estimated Construction Claims 2,904,000 3,000,000 (96,000)
----------------------------------------------
TOTAL LIABILITIES 22,159,024 24,823,875 (2,664,851)
----------------------------------------------
SHAREHOLDERS' EQUITY
Common stock at par 2,082,948 2,082,948 -
Additional paid in capital 25,370,632 25,370,632 -
Treasury Stock A-P-I-C - - -
Retained earnings - prior (32,353,339) (32,353,339) -
Y-T-D net income pre petition (676,048) (676,048) -
Y-T-D net income post petition (9,286,675) (6,450,896) (2,835,779)
----------------------------------------------
TOTAL SHAREHOLDERS' EQUITY (14,862,482) (12,026,703) (2,835,779)
----------------------------------------------
TOTAL LIABILITIES & SHAREHOLDERS' EQUITY 7,296,542 12,797,172 (5,500,630)
----------------------------------------------
----------------------------------------------
<CAPTION>
(UNAUDITED) (UNAUDITED)
SEPT 30, 1997 AUGUST 31, 1997
COMBINED COMBINED
FINAL FINAL CHANGE
----------------------------------------------
<S> <C> <C> <C>
CURRENT ASSETS
Cash 380,965 357,816 23,149
Restricted cash held in escrow 2,596,886 2,596,886 -
Accounts receivable
A/R--trade 23,132,809 26,250,950 (3,118,141)
A/R--interco - - -
A/R--employees 24,215 34,553 (10,338)
A/R--supplemental 1,122,742 871,302 251,440
A/R--misc. 1,334,791 1,351,840 (17,049)
Allowance for doubtful accounts (6,485,239) (6,362,851) (122,388)
----------------------------------------------
Accounts receivable, net 19,129,318 22,145,794 (3,016,476)
----------------------------------------------
Costs and earnings in excess of billings 8,279,770 8,677,551 (397,781)
Prepaid expenses 550,811 404,310 146,501
Inventory 5,913,773 6,106,613 (192,840)
Inventory reserve (2,980,617) (1,704,326) (1,276,291)
----------------------------------------------
Inventory, net 2,933,156 4,402,287 (1,469,131)
----------------------------------------------
Other current assets 31,788 41,994 (10,206)
----------------------------------------------
TOTAL CURRENT ASSETS 33,902,694 38,626,638 (4,723,944)
----------------------------------------------
PROPERTY AND EQUIPMENT
Field equipment 2,768,104 2,834,220 (66,116)
Automotive equipment 1,854,148 1,909,285 (55,137)
Office furniture and equipment 2,565,008 2,568,327 (3,319)
Equipment under capital leases -
Leasehold improvements 350,545 350,545 -
----------------------------------------------
TOTAL PROPERTY & EQUIP., AT COST 7,537,805 7,662,377 (124,572)
Accum. Depreciation (4,554,252) (3,908,302) (645,950)
----------------------------------------------
TOTAL PROPERTY & EQUIP., NET 2,983,553 3,754,075 (770,522)
----------------------------------------------
Long-term receivable - Other (Texas) 814,814 814,814 -
Other Assets 676,053 699,391 (23,338)
Investment & Intercompany in Subsidiaires 425,000 425,000 -
TOTAL ASSETS 38,802,114 44,319,918 (5,517,804)
----------------------------------------------
----------------------------------------------
POST PETITION CURRENT LIABILITIES
Accounts payable 810,510 680,893 129,617
Line of Credit 18,895,177 20,098,371 (1,203,194)
Accrued expenses, excluding bankruptcy costs 1,590,000 1,430,787 159,213
Accrued bankruptcy costs 1,757,864 1,422,864 335,000
Estimated claims against cash held in escrow 2,560,602 2,560,602 -
Billings in excess of costs & earnings 24,840 10,868 13,972
Current portion of long term debt - - -
Intercompany - BNYFC - - -
Intercompany payables - - -
----------------------------------------------
TOTAL POST PETITION CURRENT LIABILITIES 25,638,993 26,204,385 (565,392)
Intercompany - BNYFC - - -
Intercompany Notes Payable - - -
Pre Petition Liabilities 17,789,843 18,683,779 (893,936)
Pre Petition Estimated Construction Claims 2,904,000 3,000,000 (96,000)
----------------------------------------------
TOTAL LIABILITIES 46,332,836 47,888,164 (1,555,328)
----------------------------------------------
SHAREHOLDERS' EQUITY
Common stock at par 121,289 121,289 -
Additional paid in capital 124,480,376 124,480,376 -
Treasury Stock A-P-I-C (562,506) (562,506) -
Retained earnings - prior (111,988,497) (111,988,497) -
Y-T-D net income pre petition (1,845,936) (1,845,936) -
Y-T-D net income post petition (17,735,448) (13,772,972) (3,962,476)
----------------------------------------------
TOTAL SHAREHOLDERS' EQUITY (7,530,722) (3,568,246) (3,962,476)
----------------------------------------------
TOTAL LIABILITIES & SHAREHOLDERS' EQUITY 38,802,114 44,319,918 (5,517,804)
----------------------------------------------
----------------------------------------------
</TABLE>
See accompanying notes to financial statement information.
<PAGE>
<TABLE>
<CAPTION>
OMEGA ENVIRONMENTAL, INC.
DEBTOR IN POSSESSION CASE #97-06084
COMPARATIVE STATEMENT OF
OPERATIONS INFORMATION
(UNAUDITED) (UNAUDITED)
MONTH ENDED MONTH ENDED
SEPT 30, 1997 AUGUST 31, 1997
ESD ESD CHANGE
<S> <C> <C> <C>
Sales 1,360,487 1,267,391 93,096
Cost Of Sales 856,943 866,569 (9,626)
------------------------------------------------
Gross Profit 503,544 400,822 102,722
Selling, General, and Administrative 457,259 396,528 60,731
------------------------------------------------
Income From Operations 46,285 4,294 41,991
Other Income(Expense):
I/C Interest INCOME (Expense) (79,781) (79,489) (292)
Interest Expense (4,141) (1,550) (2,591)
Interest Income - - -
Gain (Loss) on Asset Disposition - - -
Other Expense (60,256) (528,431) 468,175
Other Income - - -
------------------------------------------------
Total Other Income (Expense) (144,178) (609,470) 465,292
------------------------------------------------
Net Income (Loss) Before Bankruptcy
Administrative Expenses (97,893) (605,176) 507,283
Bankruptcy Administrative Expenses - - -
------------------------------------------------
Net Income (Loss) (97,893) (605,176) 507,283
------------------------------------------------
------------------------------------------------
<CAPTION>
(UNAUDITED) (UNAUDITED)
MONTH ENDED MONTH ENDED
SEPT 30, 1997 AUGUST 31, 1997
PSD PSD CHANGE
------------------------------------------------
<S> <C> <C> <C>
Sales 919,835 1,073,799 (153,964)
Cost of Sales 773,044 889,920 (116,876)
------------------------------------------------
Gross Profit 146,791 183,879 (37,088)
Selling, General, and Administrative 302,588 284,705 17,883
------------------------------------------------
Income From Operations (155,797) (100,826) (54,971)
Other Income(Expense):
I/C Interest Income (Expense) (70,342) (66,396) (3,946)
Interest Expense - - -
Interest Income - - -
Gain (loss) on Asset Disposition - - -
Amortization / Write-off of Goodwill - - -
Other Expense (14,836) (164,251) 149,415
Other Income - - -
------------------------------------------------
Total Other Income (Expense) (85,178) (230,647) 145,469
------------------------------------------------
Net Income (Loss) Before Bankruptcy
Administrative Expenses (240,975) (331,473) 90,498
Bankruptcy Administrative Expenses - - -
------------------------------------------------
Net Income (Loss) (240,975) (331,473) 90,498
------------------------------------------------
------------------------------------------------
</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)
MONTH ENDED MONTH ENDED
SEPT 30, 1997 AUGUST 31, 1997
CORPORATE CORPORATE CHANGE
------------------------------------------------
<S> <C> <C> <C>
Sales - - -
Cost of Sales - - -
------------------------------------------------
Gross Profit - - -
Selling, General, and Administrative 404,671 363,457 41,214
------------------------------------------------
Income From Operations (404,671) (363,457) (41,214)
Other Income(Expense):
I/C Interest Income (Expense) 150,123 231,614 (81,491)
Interest Expense (174,575) (174,987) 412
Interest Income - 4,223 (4,223)
Gain (loss) on Asset Disposition - - -
Other Expense (24,106) (100,778) 76,672
Other Income 400 - 400
------------------------------------------------
Total Other Income (Expense) (48,158) (39,928) (8,230)
------------------------------------------------
Net Income (Loss) Before Bankruptcy
Administrative Expenses (452,829) (403,385) (49,444)
Bankruptcy Administrative Expenses (335,000) (435,000) 100,000
------------------------------------------------
Net Income (Loss) (787,829) (838,385) 50,556
------------------------------------------------
------------------------------------------------
<CAPTION>
(UNAUDITED) (UNAUDITED)
MONTH ENDED MONTH ENDED
SEPT 30, 1997 AUGUST 31, 1997
CONTINUING CONTINUING
OPERATIONS OPERATIONS CHANGE
------------------------------------------------
<S> <C> <C> <C>
Sales 2,280,322 2,341,190 (60,868)
Cost of Sales 1,629,987 1,756,489 (126,502)
------------------------------------------------
Gross Profit 650,335 584,701 65,634
Selling, General, and Administrative 1,164,518 1,044,690 119,828
------------------------------------------------
Income From Operations (514,183) (459,989) (54,194)
Other Income(Expense):
I/C Interest Income (Expense) - 85,729 (85,729)
Interest Expense (178,716) (176,537) (2,179)
Interest Income - 4,223 (4,223)
Gain (loss) on Asset Disposition - - -
Other Expense (99,198) (793,460) 694,262
Other Income 400 - 400
------------------------------------------------
Total Other Income (Expense) (277,514) (880,045) 602,531
------------------------------------------------
Net Income (Loss) Before Bankruptcy
Administrative Expenses (791,697) (1,340,034) 548,337
Bankruptcy Administrative Expenses (335,000) (435,000) 100,000
------------------------------------------------
Net Income (Loss) (1,126,697) (1,775,034) 648,337
------------------------------------------------
------------------------------------------------
</TABLE>
SEE ACCOMPANYING NOTES TO FINANCIAL INFORMATION
<PAGE>
<TABLE>
<CAPTION>
OMEGA ENVIRONMENTAL, INC.
DEBTOR IN POSSESSION CASE #97-06084
COMPARATIVE STATEMENT OF
OPERATIONS INFORMATION
(UNAUDITED) (UNAUDITED)
MONTH ENDED MONTH ENDED
SEPT 30, 1997 AUGUST 31, 1997
DISCONTINUED DISCONTINUED
OPERATIONS OPERATIONS CHANGE
------------------------------------------------
<S> <C> <C> <C>
Sales 56,640 261,702 (205,062)
Cost of Sales 548,900 556,516 (7,616)
------------------------------------------------
Gross Profit (492,260) (294,814) (197,446)
Selling, General, and Administrative 247,493 336,591 (89,098)
------------------------------------------------
- -
Income From Operations (739,753) (631,405) (108,348)
Other Income(Expense):
I/C Interest Income (Expense) - (85,730) 85,730
Interest Expense (2,031) (10) (2,021)
Interest Income 6,972 1,820 5,152
Gain (loss) on Asset Disposition 47,432 (195,418) 242,850
Other Expense (2,155,591) (27,106) (2,128,485)
Other Income 7,193 3,044 4,149
------------------------------------------------
Total Other Income (Expense) (2,096,025) (303,400) (1,792,625)
------------------------------------------------
Net Income (Loss) Before Bankruptcy
Administrative Expenses (2,835,778) (934,805) (1,900,973)
Bankruptcy Administrative Expenses - - -
------------------------------------------------
Net Income (Loss) (2,835,778) (934,805) (1,900,973)
------------------------------------------------
------------------------------------------------
<CAPTION>
(UNAUDITED) (UNAUDITED)
MONTH ENDED MONTH ENDED
SEPT 30, 1997 AUGUST 31, 1997
COMBINED COMBINED
FINAL FINAL CHANGE
------------------------------------------------
<S> <C> <C> <C>
Sales 2,115,582 2,453,627 (338,045)
Cost of Sales 1,957,507 2,163,740 (206,233)
------------------------------------------------
Gross Profit 158,075 289,887 (131,812)
Selling, General, and Administrative 1,412,011 1,381,281 30,730
------------------------------------------------
Income From Operations (1,253,936) (1,091,394) (162,542)
Other Income(Expense):
I/C Interest Income (Expense) - - -
Interest Expense (180,747) (176,547) (4,200)
Interest Income 6,972 6,043 929
Gain (loss) on Asset Disposition 47,432 (195,418) 242,850
Other Expense (2,254,789) (820,567) (1,434,222)
Other Income 7,593 3,044 4,549
------------------------------------------------
Total Other Income (Expense) (2,373,539) (1,183,445) (1,190,094)
------------------------------------------------
Net Income (Loss) Before Bankruptcy
Administrative Expenses (3,627,475) (2,274,839) (1,352,636)
Bankruptcy Administrative Expenses (335,000) (435,000) 100,000
------------------------------------------------
Net Income (Loss) (3,962,475) (2,709,839) (1,252,636)
------------------------------------------------
------------------------------------------------
</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
SEPTEMBER 30, 1997 AUGUST 31, 1997 CHANGE
------------------ --------------- ------
Cash flows from operating activities:
<S> <C> <C> <C>
Net loss $ (3,962,477) $ (2,709,839) $(1,252,638)
Adjustments to reconcile net loss to net cash
(used in) provided by operating activities:
Depreciation 111,616 117,095 (5,479)
Additional Inventory Reserves in
Discontinued Operations 1,313,984 0 1,313,984
Write down of property and equipment in
Discontinued Operations 614,548 0 614,548
(Gain) Loss on sale of property and equipment (47,432) 195,418 (242,850)
Change in certain assets & liabilities:
(Increase) decrease in:
Receivables 3,016,476 899,984 2,116,492
Costs in excess of billings 397,781 524,701 (126,920)
Inventory 155,147 541,265 (386,118)
Prepaids & other assets (136,434) (79,528) (56,906)
Increase (decrease) in:
Accounts payable 129,617 92,829 36,788
Accrued expenses 494,213 (901,469) 1,395,682
Billings in excess of costs 13,972 (14,650) 28,622
Other net changes in assets and liabilities 23,478 314,902 (291,424)
------------ ------------ ------------
Total adjustments 6,086,966 1,690,547 4,396,419
------------ ------------ ------------
Net cash provided by (used in) operating activities 2,124,489 (1,019,292) 3,143,781
Cash flows from investing activities :
Proceeds from sale of equipment 114,709 178,951 (64,242)
Additions to property and equipment (22,919) (13,314) (9,605)
------------ ------------ ------------
Net cash provided by (used in) investing activities 91,790 165,637 (73,847)
Cash flows from financing and other activities:
Net proceeds (repayments) from revolver credit loan (1,203,194) (305,576) (897,618)
Increase (decrease) in pre petition liabilities (989,936) 425,161 (1,415,097)
------------ ------------ ------------
Net cash provided by (used in) financing activities (2,193,130) 119,585 (2,312,715)
------------ ------------ ------------
Net increase (decrease) in cash 23,149 (734,070) 757,219
CASH AT BEGINNING OF PERIOD 357,816 1,091,886 (734,070)
------------ ------------ ------------
CASH AT END OF PERIOD $ 380,965 $ 357,816 $ 23,149
------------ ------------ ------------
------------ ------------ ------------
</TABLE>
See accompanying notes to financial statement information
<PAGE>
Omega Environmental, Inc.
Debtor in Possession Case # 97-06084
September 30, 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 September 30, 1997, the Company's borrowings under the
debtor-in-possession financing agreement with BNY Financial
Corporation ("BNYFC") were $18,895,177 which exceeded the
$17,250,000 borrowing limit in the debtor-in-possession financing
agreement by $1,645,177. Additionally, the Company's borrowings
exceeded the collateral formula by $8,454,000. The Company and
BNYFC continue to operate under the debtor-in-possession financing
arrangement.
