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Previous: OMEGA ENVIRONMENTAL INC, 8-K, 1998-07-28 |
Next: CMA OHIO MUNICIPAL MONEY FUND OF CMA MULTI STATE MUN SERS TR, 485BPOS, 1998-07-28 |
<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) July 16, 1998
----------------
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 July 16, 1998, the Registrant filed unaudited financial statement
information as of and for each of the months ended April 30, 1998 and
March 31, 1998 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
April 30, 1998 and March 31, 1998 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: July 16, 1998 /s/ Bradley S. Powell
-------------------------------
Bradley S. Powell
Controller
<PAGE>
OMEGA ENVIRONMENTAL, INC. EXHIBIT 99.1
DEBTOR IN POSESSION CASE #97-06084
COMPARATIVE BALANCE SHEET INFORMATION
<TABLE>
<CAPTION>
(UNAUDITED) (UNAUDITED)
APR 30, 1998 MAR 31, 1998
ESD ESD CHANGE
-------------------------------------------------
<S> <C> <C> <C>
CURRENT ASSETS
Cash 45,689 36,546 9,143
Restricted cash held in escrow 2,615,381 2,615,260 121
Accounts receivable
A/R--trade 11,724,953 11,849,505 (124,552)
A/R--interco 1,086 16,378 (15,292)
A/R--employees 8,682 3,799 4,883
A/R--supplemental 1,883,112 1,871,891 11,221
A/R--misc 191,587 208,740 (17,153)
Allowance for doubtful accounts (3,056,888) (3,124,492) 67,604
-------------------------------------------------
Accounts receivable, net 10,752,532 10,825,822 (73,290)
-------------------------------------------------
Costs and earnings in excess of billings 5,696,773 5,842,726 (145,953)
Prepaid expenses - - -
Inventory -
Inventory reserve -
-------------------------------------------------
Inventory, net - - -
-------------------------------------------------
Other current assets -
-------------------------------------------------
TOTAL CURRENT ASSETS 19,110,375 19,320,354 (209,979)
-------------------------------------------------
PROPERTY AND EQUIPMENT
Field equipment 2,232,329 2,229,615 2,714
Automotive equipment 1,031,192 1,038,692 (7,500)
Office furniture and equipment 833,149 826,844 6,305
Leasehold improvements 93,223 93,223 -
-------------------------------------------------
TOTAL PROPERTY & EQUIP., AT COST 4,189,893 4,188,374 1,519
Accum. Depreciation (2,726,791) (2,672,484) (54,308)
-------------------------------------------------
TOTAL PROPERTY & EQUIP., NET 1,463,102 1,515,891 (52,789)
-------------------------------------------------
Long-term accounts receivable - Other (Texas) 1,053,883 1,053,883 -
Reserve for Long-term accounts receivable (350,000) (350,000) -
-------------------------------------------------
Long-term accounts receviable - Other (Texas), net 703,883 703,883 -
Other Assets 177,975 177,675 300
Investment & Intercompany in Subsidiaires - - -
-------------------------------------------------
TOTAL ASSETS 21,455,335 21,717,803 (262,468)
-------------------------------------------------
-------------------------------------------------
POST PETITION CURRENT LIABILITIES
Accounts payable 316,208 281,937 34,271
Line of Credit
Accrued expenses, excluding bankruptcy costs 368,747 329,055 39,692
Accrued bankruptcy costs
Estimated claims against cash held in escrow 2,560,602 2,560,602 -
Intercompany - BNYFC 8,219,509 8,423,607 (204,098)
Intercompany payables 1,590 60,540 (58,950)
-------------------------------------------------
TOTAL POST PETITION CURRENT LIABILITIES 11,466,656 11,655,741 (189,085)
Intercompany Notes Payable 8,741,768 8,741,768 -
Pre Petition Liabilities 2,226,778 2,239,330 (12,552)
Pre Petition Estimated Construction Claims
-------------------------------------------------
TOTAL LIABILITIES 22,435,202 22,636,839 (201,637)
-------------------------------------------------
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 (15,563,780) (15,563,780)
Y-T-D net income pre petition (26,496) (26,496)
Y-T-D net income post petition (3,181,455) (3,120,624) (60,831)
-------------------------------------------------
TOTAL SHAREHOLDERS' EQUITY (979,867) (919,036) (60,831)
-------------------------------------------------
TOTAL LIABILITIES & SHAREHOLDERS' EQUITY 21,455,335 21,717,803 (262,468)
-------------------------------------------------
-------------------------------------------------
<CAPTION>
(UNAUDITED) (UNAUDITED)
APR 30, 1998 MAR 31, 1998
PSD PSD CHANGE
-------------------------------------------------
<S> <C> <C> <C>
CURRENT ASSETS
Cash 51,288 37,577 13,711
Restricted cash held in escrow -
Accounts receivable
A/R--trade 1,712,612 1,911,877 (199,265)
A/R--interco 1,590 - 1,590
A/R--employees 17,085 17,900 (815)
A/R--supplemental -
A/R--misc - - -
Allowance for doubtful accounts (67,475) (98,115) 30,640
-------------------------------------------------
Accounts receivable, net 1,663,812 1,831,662 (167,850)
-------------------------------------------------
Costs and earnings in excess of billings -
Prepaid expenses 71,049 74,062 (3,013)
Inventory 3,884,440 3,991,878 (107,438)
Inventory reserve (1,569,720) (1,647,478) 77,758
-------------------------------------------------
Inventory, net 2,314,720 2,344,400 (29,680)
-------------------------------------------------
Other current assets -
-------------------------------------------------
TOTAL CURRENT ASSETS 4,100,869 4,287,701 (186,832)
-------------------------------------------------
PROPERTY AND EQUIPMENT
Field equipment 323,298 323,298 -
Automotive equipment 619,625 619,625 -
Office furniture and equipment 1,111,020 1,107,708 3,312
Leasehold improvements 89,040 89,040 -
-------------------------------------------------
TOTAL PROPERTY & EQUIP., AT COST 2,142,983 2,139,671 3,312
Accum. Depreciation (1,195,831) (1,173,561) (22,270)
-------------------------------------------------
TOTAL PROPERTY & EQUIP., NET 947,152 966,110 (18,958)
-------------------------------------------------
Long-term accounts receivable - Other (Texas) - - -
Reserve for Long-term accounts receivable -
-------------------------------------------------
Long-term accounts receviable - Other (Texas), net - - -
Other Assets - - -
Investment & Intercompany in Subsidiaires - - -
-------------------------------------------------
TOTAL ASSETS 5,048,021 5,253,811 (205,790)
-------------------------------------------------
-------------------------------------------------
POST PETITION CURRENT LIABILITIES
Accounts payable 100,018 105,616 (5,598)
Line of Credit -
Accrued expenses, excluding bankruptcy costs 505,614 491,873 13,741
Accrued bankruptcy costs -
Estimated claims against cash held in escrow -
Intercompany - BNYFC 8,317,154 8,216,587 100,567
Intercompany payables 1,086 - 1,086
-------------------------------------------------
TOTAL POST PETITION CURRENT LIABILITIES 8,923,872 8,814,076 109,796
Intercompany Notes Payable -
Pre Petition Liabilities 1,046,103 1,054,153 (8,050)
Pre Petition Estimated Construction Claims -
-------------------------------------------------
TOTAL LIABILITIES 9,969,975 9,868,229 101,746
-------------------------------------------------
SHAREHOLDERS' EQUITY
Common stock at par 3,371,172 3,371,172
Additional paid in capital 10,742,189 10,742,189
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 (4,020,199) (3,712,663) (307,536)
-------------------------------------------------
TOTAL SHAREHOLDERS' EQUITY (4,921,954) (4,614,418) (307,536)
-------------------------------------------------
TOTAL LIABILITIES & SHAREHOLDERS' EQUITY 5,048,021 5,253,811 (205,790)
-------------------------------------------------
-------------------------------------------------
</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)
APR 30, 1998 MAR 31, 1998
CORPORATE CORPORATE CHANGE
-------------------------------------------------
<S> <C> <C> <C>
CURRENT ASSETS
Cash 687,161 436,353 250,808
Restricted cash held in escrow -
Accounts receivable
A/R--trade 144,431 144,431 -
A/R--interco -
A/R--employees -
A/R--supplemental -
A/R--misc. 1,076,094 1,078,506 (2,412)
Allowance for doubtful accounts (1,138,467) (1,138,467) -
-------------------------------------------------
Accounts receivable, net 82,058 84,470 (2,412)
-------------------------------------------------
Costs and earnings in excess of billings -
Prepaid expenses 449,540 421,144 28,396
Inventory -
Inventory reserve -
-------------------------------------------------
Inventory, net - - -
-------------------------------------------------
Other current assets -
-------------------------------------------------
TOTAL CURRENT ASSETS 1,218,759 941,967 276,792
-------------------------------------------------
PROPERTY AND EQUIPMENT
Field equipment -
Automotive equipment -
Office furniture and equipment 310,472 310,472 -
Leasehold improvements 21,780 21,780 -
-------------------------------------------------
TOTAL PROPERTY & EQUIP., AT COST 332,252 332,252 -
Accum. Depreciation (280,208) (277,976) (2,232)
-------------------------------------------------
TOTAL PROPERTY & EQUIP., NET 52,044 54,276 (2,232)
-------------------------------------------------
Long-term accounts receivable - Other (Texas) - - -
Reserve for Long-term accounts receivable -
-------------------------------------------------
Long-term accounts receviable - Other (Texas), net - - -
Other Assets 129,907 360,775 (230,868)
Investment & Intercompany in Subsidiaires 74,785,282 74,785,282 -
-------------------------------------------------
TOTAL ASSETS 76,185,992 76,142,300 43,692
-------------------------------------------------
-------------------------------------------------
POST PETITION CURRENT LIABILITIES
Accounts payable 26,516 37,118 (10,602)
Line of Credit 20,799,697 20,604,353 195,344
Accrued expenses, excluding bankruptcy costs 454,202 516,301 (62,099)
Accrued bankruptcy costs 2,813,589 2,658,129 155,460
Estimated claims against cash held in escrow -
Intercompany - BNYFC (19,353,124) (19,504,039) 150,915
Intercompany payables -
-------------------------------------------------
TOTAL POST PETITION CURRENT LIABILITIES 4,740,880 4,311,862 429,018
Intercompany Notes Payable -
Pre Petition Liabilities 2,534,195 2,534,371 (176)
Pre Petition Estimated Construction Claims -
-------------------------------------------------
TOTAL LIABILITIES 7,275,075 6,846,233 428,842
-------------------------------------------------
SHAREHOLDERS' EQUITY
Common stock at par 121,289 121,289
Additional paid in capital 128,204,630 128,204,630
Treasury Stock A-P-I-C (562,506) (562,506)
Retained earnings - prior (49,321,103) (49,321,103)
Y-T-D net income pre petition (895,498) (895,498)
Y-T-D net income post petition (8,635,895) (8,250,745) (385,150)
-------------------------------------------------
TOTAL SHAREHOLDERS' EQUITY 68,910,917 69,296,067 (385,150)
-------------------------------------------------
TOTAL LIABILITIES & SHAREHOLDERS' EQUITY 76,185,992 76,142,300 43,692
-------------------------------------------------
-------------------------------------------------
<CAPTION>
(UNAUDITED) (UNAUDITED)
APR 30, 1998 MAR 31, 1998
CONTINUING CONTINUING
OPERATIONS OPERATIONS CHANGE
-------------------------------------------------------
<S> <C> <C> <C>
CURRENT ASSETS
Cash 784,138 510,476 273,662
Restricted cash held in escrow 2,615,381 2,615,260 121
Accounts receivable
A/R--trade 13,581,996 13,905,813 (323,817)
A/R--interco 2,676 16,378 (13,702)
A/R--employees 25,767 21,699 4,068
A/R--supplemental 1,883,112 1,871,891 11,221
A/R--misc. 1,267,681 1,287,246 (19,565)
Allowance for doubtful accounts (4,262,830) (4,361,074) 98,244
-------------------------------------------------------
Accounts receivable, net 12,498,402 12,741,954 (243,552)
-------------------------------------------------------
Costs and earnings in excess of billings 5,696,773 5,852,172 (155,399)
Prepaid expenses 520,589 485,760 34,829
Inventory 3,884,440 3,991,878 (107,438)
Inventory reserve (1,569,720) (1,647,478) 77,758
-------------------------------------------------------
Inventory, net 2,314,720 2,344,400 (29,680)
-------------------------------------------------------
Other current assets - - -
-------------------------------------------------------
TOTAL CURRENT ASSETS 24,430,003 24,550,022 (120,019)
-------------------------------------------------------
PROPERTY AND EQUIPMENT
Field equipment 2,555,627 2,552,913 2,714
Automotive equipment 1,650,817 1,658,317 (7,500)
Office furniture and equipment 2,254,641 2,245,024 9,617
Leasehold improvements 204,043 204,043 -
-------------------------------------------------------
TOTAL PROPERTY & EQUIP., AT COST 6,665,128 6,660,297 4,831
Accum. Depreciation (4,202,830) (4,124,021) (78,809)
-------------------------------------------------------
TOTAL PROPERTY & EQUIP., NET 2,462,298 2,536,277 (73,978)
-------------------------------------------------------
Long-term accounts receivable - Other (Texas) 1,053,883 1,053,883 -
Reserve for Long-term accounts receivable (350,000) (350,000) -
-------------------------------------------------------
Long-term accounts receviable - Other (Texas), net 703,883 703,883 -
Other Assets 307,882 538,450 (230,568)
Investment & Intercompany in Subsidiaires 74,785,282 74,785,282 -
-------------------------------------------------------
TOTAL ASSETS 102,689,348 103,113,914 (424,565)
-------------------------------------------------------
-------------------------------------------------------
POST PETITION CURRENT LIABILITIES
Accounts payable 442,742 424,671 18,071
Line of Credit 20,799,697 20,604,353 195,344
Accrued expenses, excluding bankruptcy costs 1,328,563 1,337,228 (8,665)
Accrued bankruptcy costs 2,813,589 2,658,129 155,460
Estimated claims against cash held in escrow 2,560,602 2,560,602 -
Intercompany - BNYFC (2,816,461) (2,863,845) 47,384
Intercompany payables 2,676 60,540 (57,864)
-------------------------------------------------------
TOTAL POST PETITION CURRENT LIABILITIES 25,131,408 24,781,678 349,730
Intercompany Notes Payable 8,741,768 8,741,768
Pre Petition Liabilities 5,807,076 5,827,854 (20,778)
Pre Petition Estimated Construction Claims - - -
-------------------------------------------------------
TOTAL LIABILITIES 39,680,252 39,351,300 328,952
-------------------------------------------------------
SHAREHOLDERS' EQUITY
Common stock at par 3,492,461 3,492,461
Additional paid in capital 156,738,683 156,738,683
Treasury Stock A-P-I-C (562,506) (562,506)
Retained earnings - prior (79,652,105) (79,652,105)
Y-T-D net income pre petition (1,169,888) (1,169,888)
Y-T-D net income post petition (15,837,549) (15,084,032) (753,517)
-------------------------------------------------------
TOTAL SHAREHOLDERS' EQUITY 63,009,096 63,762,614 (753,517)
-------------------------------------------------------
TOTAL LIABILITIES & SHAREHOLDERS' EQUITY 102,689,348 103,113,914 (424,565)
-------------------------------------------------------
-------------------------------------------------------
</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)
APR 30, 1998 MAR 31, 1998
DISCONTINUED DISCONTINUED
OPERATIONS OPERATIONS CHANGE
--------------------------------------------------
<S> <C> <C> <C>
CURRENT ASSETS
Cash - - -
Restricted cash held in escrow - -
Accounts receivable
A/R--trade 5,388,686 5,522,449 (133,763)
A/R--interco - 60,540 (60,540)
A/R--employees - -
A/R--supplemental -
A/R--misc. 40,640 57,641 (17,001)
Allowance for doubtful accounts (2,788,545) (2,878,073) 89,528
--------------------------------------------------
Accounts receivable, net 2,640,781 2,762,557 (121,776)
--------------------------------------------------
Costs and earnings in excess of billings - -
Prepaid expenses - -
Inventory - -
Inventory reserve - -
--------------------------------------------------
Inventory, net - - -
--------------------------------------------------
Other current assets 83,773 83,773 -
--------------------------------------------------
TOTAL CURRENT ASSETS 2,724,554 2,846,330 (121,776)
--------------------------------------------------
PROPERTY AND EQUIPMENT
Field equipment 4,831 4,831 -
Automotive equipment 16,657 16,657 -
Office furniture and equipment 3,518 3,518 -
Leasehold improvements 130,767 130,767 -
--------------------------------------------------
TOTAL PROPERTY & EQUIP., AT COST 155,773 155,773 -
Accum. Depreciation (78,397) (78,397) -
--------------------------------------------------
TOTAL PROPERTY & EQUIP., NET 77,376 77,376 -
--------------------------------------------------
Long-term accounts receivable - Other (Texas) - - -
Reserve for Long-term accounts receivable -
--------------------------------------------------
Long-term accounts receviable - Other (Texas), net - - -
Other Assets 20,815 20,815 -
Investment & Intercompany in Subsidiaires - -
--------------------------------------------------
TOTAL ASSETS 2,822,745 2,944,521 (121,776)
--------------------------------------------------
--------------------------------------------------
POST PETITION CURRENT LIABILITIES
Accounts payable 41 6,951 (6,910)
Line of Credit
Accrued expenses, excluding bankruptcy costs 20,403 20,405 (2)
Accrued bankruptcy costs
Estimated claims against cash held in escrow
Intercompany - BNYFC 2,816,461 2,863,843 (47,382)
Intercompany payables - 16,378 (16,378)
--------------------------------------------------
TOTAL POST PETITION CURRENT LIABILITIES 2,836,905 2,907,577 (70,672)
Intercompany Notes Payable 2,535,455 2,535,454 1
Pre Petition Liabilities 10,276,211 10,289,703 (13,492)
Pre Petition Estimated Construction Claims 2,904,000 2,904,000 -
--------------------------------------------------
TOTAL LIABILITIES 18,552,571 18,636,734 (84,163)
--------------------------------------------------
SHAREHOLDERS' EQUITY
Common stock at par 2,082,948 2,082,948
Additional paid in capital 25,370,631 25,370,631
Treasury Stock A-P-I-C
Retained earnings - prior (32,353,340) (32,353,339)
Y-T-D net income pre petition (676,048) (676,048)
Y-T-D net income post petition (10,154,017) (10,116,404) (37,613)
--------------------------------------------------
TOTAL SHAREHOLDERS' EQUITY (15,729,826) (15,692,214) (37,613)
--------------------------------------------------
TOTAL LIABILITIES & SHAREHOLDERS' EQUITY 2,822,745 2,944,521 (121,776)
--------------------------------------------------
--------------------------------------------------
<CAPTION>
(UNAUDITED) (UNAUDITED)
APR 30, 1998 MAR 31, 1998
COMBINED COMBINED
FINAL FINAL CHANGE
--------------------------------------------------
<S> <C> <C> <C>
CURRENT ASSETS
Cash 784,138 510,476 273,662
Restricted cash held in escrow 2,615,381 2,615,260 121
Accounts receivable
A/R--trade 18,970,682 19,428,262 (457,580)
A/R--interco - - -
A/R--employees 25,767 21,699 4,068
A/R--supplemental 1,883,112 1,871,891 11,221
A/R--misc. 1,308,321 1,344,887 (36,566)
Allowance for doubtful accounts (7,051,375) (7,239,147) 187,772
--------------------------------------------------
Accounts receivable, net 15,136,507 15,427,593 (291,086)
--------------------------------------------------
Costs and earnings in excess of billings 5,696,773 5,852,172 (155,399)
Prepaid expenses 520,589 485,760 34,829
Inventory 3,884,440 3,991,878 (107,438)
Inventory reserve (1,569,720) (1,647,478) 77,758
--------------------------------------------------
Inventory, net 2,314,720 2,344,400 (29,680)
--------------------------------------------------
Other current assets 83,773 83,773 (0)
--------------------------------------------------
TOTAL CURRENT ASSETS 27,151,881 27,319,434 (167,553)
--------------------------------------------------
PROPERTY AND EQUIPMENT
Field equipment 2,560,458 2,557,745 2,713
Automotive equipment 1,667,474 1,674,974 (7,500)
Office furniture and equipment 2,258,159 2,248,542 9,617
Leasehold improvements 334,810 334,810 0
--------------------------------------------------
TOTAL PROPERTY & EQUIP., AT COST 6,820,901 6,816,071 4,830
Accum. Depreciation (4,281,227) (4,202,418) (78,809)
--------------------------------------------------
TOTAL PROPERTY & EQUIP., NET 2,539,674 2,613,653 (73,979)
--------------------------------------------------
Long-term accounts receivable - Other (Texas) 1,053,883 1,053,883 -
Reserve for Long-term accounts receivable (350,000) (350,000) -
--------------------------------------------------
Long-term accounts receviable - Other (Texas), net 703,883 703,883 -
Other Assets 328,697 559,265 (230,568)
Investment & Intercompany in Subsidiaires 425,000 425,000 -
--------------------------------------------------
TOTAL ASSETS 31,149,135 31,621,235 (472,100)
--------------------------------------------------
--------------------------------------------------
POST PETITION CURRENT LIABILITIES
Accounts payable 442,783 431,621 11,162
Line of Credit 20,799,697 20,604,353 195,344
Accrued expenses, excluding bankruptcy costs 1,348,967 1,357,633 (8,666)
Accrued bankruptcy costs 2,813,589 2,658,129 155,460
Estimated claims against cash held in escrow 2,560,602 2,560,602 -
Intercompany - BNYFC - - -
Intercompany payables - - -
--------------------------------------------------
TOTAL POST PETITION CURRENT LIABILITIES 27,965,638 27,612,338 353,300
Intercompany Notes Payable
Pre Petition Liabilities 16,083,287 16,117,557 (34,270)
Pre Petition Estimated Construction Claims 2,904,000 2,904,000 -
--------------------------------------------------
TOTAL LIABILITIES 46,952,925 46,633,895 319,030
--------------------------------------------------
SHAREHOLDERS' EQUITY
Common stock at par 121,289 121,289
Additional paid in capital 124,480,374 124,480,374
Treasury Stock A-P-I-C (562,506) (562,506)
Retained earnings - prior (112,005,445) (112,005,444)
Y-T-D net income pre petition (1,845,936) (1,845,936)
Y-T-D net income post petition (25,991,566) (25,200,436) (791,130)
--------------------------------------------------
TOTAL SHAREHOLDERS' EQUITY (15,803,790) (15,012,660) (791,130)
--------------------------------------------------
TOTAL LIABILITIES & SHAREHOLDERS' EQUITY 31,149,135 31,621,235 (472,100)
--------------------------------------------------
--------------------------------------------------
</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
APR 30, 1998 MAR 31, 1998 APR 30, 1998 MAR 31, 1998
ESD ESD CHANGE PSD PSD CHANGE
----------------------------------------------- --------------------------------------
<S> <C> <C> <C> <C> <C> <C>
Sales 1,230,621 1,246,883 (16,262) 626,914 676,273 (49,359)
Cost of Sales 809,883 818,924 (9,041) 635,734 593,251 42,483
----------------------------------------------- --------------------------------------
Gross Profit 420,738 427,959 (7,221) (8,820) 83,022 (91,842)
Selling, General, and Administrative 396,610 393,836 2,775 212,294 252,313 (40,019)
----------------------------------------------- --------------------------------------
Income (Loss) From Operations 24,128 34,123 (9,995) (221,114) (169,291) (51,823)
Other Income(Expense):
I/C Interest Income (Expense) (72,397) (73,603) 1,206 (72,343) (71,550) (793)
Interest Expense 380 (1,163) 1,543 - -
Interest Income 597 108 489 - -
Gain (loss) on Asset Disposition (3,773) 709 (4,482) - -
Other Expense (9,766) (499,000) 489,234 (14,079) 25,981 (40,060)
Other Income - 12,303 (12,303) - -
----------------------------------------------- --------------------------------------
Total Other (Expense) (84,959) (560,646) 475,687 (86,422) (45,569) (40,853)
Net Loss Before Bankruptcy
Administrative Expenses (60,831) (526,523) 465,692 (307,536) (214,860) (92,676)
Bankruptcy Administrative Expenses -
----------------------------------------------- --------------------------------------
Net Loss (60,831) (526,523) 465,692 (307,536) (214,860) (92,676)
----------------------------------------------- --------------------------------------
----------------------------------------------- --------------------------------------
</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 APR 30, 1998 MAR 31, 1998
APR 30, 1998 MAR 31, 1998 CONTINUING CONTINUING
CORPORATE CORPORATE CHANGE OPERATIONS OPERATIONS CHANGE
-------------------------------------- -------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
Sales - - - 1,857,535 1,923,156 (65,621)
Cost of Sales - - - 1,445,617 1,412,175 33,442
-------------------------------------- -------------------------------------------
Gross Profit - - - 411,918 510,981 (99,063)
Selling, General, and Administrative 185,780 224,632 (38,852) 794,684 870,781 (76,097)
-------------------------------------- -------------------------------------------
Income (Loss) From Operations (185,780) (224,632) 38,852 (382,766) (359,800) (22,966)
Other Income(Expense):
I/C Interest Income (Expense) 144,740 145,153 (413) - - -
Interest Expense (179,172) (184,363) 5,191 (178,792) (185,526) 6,734
Interest Income 1,058 (1,058) 597 1,166 (569)
Gain (loss) on Asset Disposition - - (3,773) 709 (4,482)
Other Expense (9,478) (5,306) (4,172) (33,323) (478,325) 445,002
Other Income 1,000 (1,000) - 13,303 (13,303)
-------------------------------------- -------------------------------------------
Total Other (Expense) (43,910) (42,458) (1,452) (215,291) (648,673) 433,382
Net Loss Before Bankruptcy
Administrative Expenses (229,690) (267,090) 37,400 (598,057) (1,008,473) 410,416
Bankruptcy Administrative Expenses (155,460) (150,000) (5,460) (155,460) (150,000) (5,460)
-------------------------------------- -------------------------------------------
Net Loss (385,150) (417,090) 31,940 (753,517) (1,158,473) 404,956
-------------------------------------- -------------------------------------------
-------------------------------------- -------------------------------------------
</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
APR 30, 1998 MAR 31, 1998 APR 30, 1998 MAR 31, 1998
DISCONTINUED DISCONTINUED COMBINED COMBINED
OPERATIONS OPERATIONS CHANGE FINAL FINAL CHANGE
------------------------------------------- -------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
Sales - - 1,856,449 2,000,074 (143,625)
Cost of Sales - - 1,444,531 1,489,093 (44,562)
------------------------------------------- -------------------------------------------
Gross Profit - - - 411,918 510,981 (99,063)
Selling, General, and Administrative 0 (0) 794,684 870,781 (76,097)
------------------------------------------- -------------------------------------------
Income (Loss) From Operations - (0) 0 (382,766) (359,800) (22,966)
Other Income(Expense):
I/C Interest Income (Expense) - - - - -
Interest Expense - - (178,792) (185,526) 6,734
Interest Income - - 597 1,166 (569)
Gain (loss) on Asset Disposition - - (3,773) 709 (4,482)
Other Expense (37,613) - (37,613) (70,936) (478,325) 407,389
Other Income 59,615 (59,615) - 72,918 (72,918)
------------------------------------------- -------------------------------------------
Total Other (Expense) (37,613) 59,615 (97,228) (252,904) (589,058) 336,154
Net Loss Before Bankruptcy
Administrative Expenses (37,613) 59,615 (97,228) (635,670) (948,858) 313,188
Bankruptcy Administrative Expenses - (155,460) (150,000) (5,460)
------------------------------------------- -------------------------------------------
Net Loss (37,613) 59,615 (97,228) (791,130) (1,098,858) 307,728
------------------------------------------- -------------------------------------------
------------------------------------------- -------------------------------------------
</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
APR 30, 1998 MAR 31, 1998 CHANGE
------------------ ---------------- ----------------
<S> <C> <C> <C>
Cash flows from operating activities:
Net loss ($791,130) ($1,098,858) $307,728
Adjustments to reconcile net loss to net cash (used in)
provided by operating activities:
Depreciation 85,206 86,286 (1,080)
Reserve for Long-term accounts receivable 350,000 (350,000)
(Gain) Loss on sale of property and equipment (3,773) (709) (3,064)
Change in certain assets & liabilities:
(Increase) decrease in:
Receivables 291,086 931,584 (640,498)
Costs in excess of billings 155,399 145,545 9,854
Inventory 29,680 21,285 8,395
Prepaids & other assets (34,829) 4,482 (39,310)
Increase (decrease) in:
Accounts payable 11,162 (168,713) 179,875
Accrued expenses 146,794 (135,811) 282,605
Other net changes in assets and liabilities 230,447 (23,878) 254,326
------------------ ---------------- ----------------
Total adjustments 911,172 1,210,070 (298,898)
------------------ ---------------- ----------------
Net cash provided by operating activities 120,042 111,212 8,830
Cash flows from investing activities :
Proceeds from sale of equipment 1,900 1,000 900
Additions to property and equipment (9,354) (33,163) 23,809
------------------ ---------------- ----------------
Net cash provided by (used in) investing activities (7,454) (32,163) 24,709
Cash flows from financing and other activities:
Net proceeds (repayments) from revolver credit loan 195,344 407,550 (212,206)
Increase (decrease) in pre petition liabilities (34,270) (362,078) 327,808
------------------ ---------------- ----------------
Net cash provided by (used in) financing activities 161,074 45,472 115,602
------------------ ---------------- ----------------
Net increase in cash 273,662 124,521 149,141
CASH AT BEGINNING OF PERIOD 510,476 385,955 124,521
------------------ ---------------- ----------------
CASH AT END OF PERIOD $784,138 $510,476 $273,662
------------------ ---------------- ----------------
------------------ ---------------- ----------------
</TABLE>
See accompanying notes to financial statement information.
<PAGE>
EXHIBIT 99.1
Omega Environmental, Inc.
Debtor in Possession Case # 97-06084
April 30, 1998 Financial Reporting Information
Notes to Financial Statement Information
Basis of Presentation
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.
BNY Financial Corporation
As of April 30, 1998, the Company's borrowings from BNY Financial Corporation
("BNYFC") were $20,779,697. In June the Company successfully negotiated with
BNYFC for continuance of debtor-in-possession financing through December 31,
1998.
Costs and Earnings in Excess of Billing
The asset, "Costs and earnings in excess of billings" recorded on the
Environmental Services Division's balance sheet, represents estimated revenues
recognized in excess of amounts billed using the percentage of completion method
of contract accounting. In the past, as projects were completed and billed
significant write-offs of this asset were recorded in excess of reserves
provided. Management is in the process of instituting new procedures for earlier
identification of potential write-offs and is analyzing current fixed-price
contracts and related costs incurred to determine estimated profitability. The
results of these new procedures and analysis are not complete and any adjustment
to this asset may have a material adverse effect on the financial statements.
Accounts Receivable
Accounts receivable recorded on the Environmental Services Division's balance
sheet are primarily due from various State reimbursement programs for clean up
of leaking underground storage tanks. Management is in the process of analyzing
the collectability of these accounts and estimated bad debts may be
significantly in excess of established reserves. The results of this analysis
are not complete at this time and any adjustment may have a material adverse
effect on the financial statements.
<PAGE>
Accounts receivable recorded on the Discontinued Operation's balance sheet
represents amounts recorded as due from customers in the company's discontinued
construction activities. The amounts ultimately collected by the company will be
significantly less than net recorded amounts in part because of set-offs, liens,
bonding issues and customer disputes which may result in refusal to pay
receivable amounts or require payment or set-off of pre-petition liabilities and
claims. The amount ultimately collectible is not determinable at this time.
Inventory
Inventory recorded on the Petroleum Services Division's balance sheet consists
primarily of component parts for servicing retail and commercial fueling
facilities. The use of these parts has decreased significantly due to the
decline in the level of business activity from prior periods. Management is in
the process of selling excess parts. Losses on sale of these excess parts may
exceed recorded reserves. The amount of loss can not be determined at this
time.
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