<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) March 19, 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 (I.R.S. EMPLOYER IDENTIFICATION NO.)
OF 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 March 19, 1998, the Registrant filed unaudited financial statement
information as of and for each of the months ended December 31, 1997
and November 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
December 31, 1997 and November 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: March 19, 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) (UNAUDITED) (UNAUDITED)
DEC 31, 1997 NOV 30, 1997 DEC 31, 1997 NOV 30, 1997
ESD ESD CHANGE PSD PSD CHANGE
------------------------------------------- --------------------------------------
<S> <C> <C> <C> <C> <C> <C>
CURRENT ASSETS
Cash 204,935 2,802 202,133 60,972 29,058 31,914
Restricted cash held in escrow 2,614,909 2,614,801 108 - - -
Accounts receivable - - - -
A/R--trade 12,513,883 11,912,354 601,529 2,231,058 2,711,907 (480,849)
A/R--interco 42,513 46,535 (4,022) 1,393 3,933 (2,540)
A/R--employees 8,063 10,265 (2,202) 33,011 32,053 958
A/R--supplemental 1,724,603 1,481,112 243,491 -
A/R--misc. 24,325 17,337 6,988 - - -
Allowance for doubtful accounts (2,417,129) (2,240,791) (176,338) (190,350) (204,693) 14,343
------------------------------------------- --------------------------------------
Accounts receivable, net 11,896,258 11,226,812 669,446 2,075,112 2,543,200 (468,088)
------------------------------------------- --------------------------------------
Costs and earnings in excess of billings 6,061,123 7,014,019 (952,896) - - -
Prepaid expenses 47,521 28,903 18,618 149,724 160,204 (10,480)
Inventory 8,837 18,310 (9,473) 3,669,795 3,498,154 171,641
Inventory reserve - - - (1,319,668) (1,174,615) (145,053)
------------------------------------------- --------------------------------------
Inventory, net 8,837 18,310 (9,473) 2,350,127 2,323,539 26,588
------------------------------------------- --------------------------------------
Other current assets - - - - - -
------------------------------------------- --------------------------------------
TOTAL CURRENT ASSETS 20,833,583 20,905,647 (72,064) 4,635,935 5,056,001 (420,066)
------------------------------------------- --------------------------------------
PROPERTY AND EQUIPMENT
Field equipment 2,082,262 2,106,819 (24,557) 323,298 321,020 2,278
Automotive equipment 939,324 922,976 16,348 619,625 619,625 -
Office furniture and equipment 791,304 792,597 (1,293) 1,096,131 1,089,968 6,163
Equipment under capital leases - -
Leasehold improvements 90,823 92,903 (2,080) 89,040 89,040 -
------------------------------------------- --------------------------------------
TOTAL PROPERTY & EQUIP., AT COST 3,903,713 3,915,295 (11,582) 2,128,094 2,119,653 8,441
Accum. Depreciation (2,303,935) (2,250,323) (53,612) (1,107,080) (1,084,810) (22,270)
------------------------------------------- --------------------------------------
TOTAL PROPERTY & EQUIP., NET 1,599,778 1,664,972 (65,194) 1,021,014 1,034,843 (13,829)
------------------------------------------- --------------------------------------
Long-term receivable - Other (Texas) 992,049 958,716 33,333 - - -
Other Assets 176,766 178,166 (1,400) - - -
Investment & Intercompany in Subsidiaires - - - - - -
------------------------------------------- --------------------------------------
TOTAL ASSETS 23,602,176 23,707,501 (105,325) 5,656,949 6,090,844 (433,895)
------------------------------------------- --------------------------------------
------------------------------------------- --------------------------------------
POST PETITION CURRENT LIABILITIES
Accounts payable 174,755 365,900 (191,145) 251,145 179,492 71,653
Line of Credit - - - - - -
Accrued expenses, excluding bankruptcy costs 659,916 663,458 (3,543) 499,975 612,040 (112,065)
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 9,115,920 8,721,962 393,958 7,709,931 7,618,349 91,582
Intercompany payables 4,490 10,122 (5,632) - 137,546 (137,546)
------------------------------------------- --------------------------------------
TOTAL POST PETITION CURRENT LIABILITIES 12,515,683 12,322,044 193,638 8,461,051 8,547,427 (86,376)
Intercompany - BNYFC - - - - - -
Intercompany Notes Payable 8,741,768 8,741,768 - - - -
Pre Petition Liabilities 2,451,601 2,463,068 (11,467) 982,314 982,314 -
Pre Petition Estimated Construction Claims - - - - - -
------------------------------------------- --------------------------------------
TOTAL LIABILITIES 23,709,052 23,526,881 182,171 9,443,365 9,529,741 (86,376)
------------------------------------------- --------------------------------------
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 (2,308,466) (2,020,969) (287,497) (2,884,661) (2,537,142) 347,519)
------------------------------------------- --------------------------------------
TOTAL SHAREHOLDERS' EQUITY (106,876) 180,621 (287,497) (3,786,416) (3,438,897) (347,519)
------------------------------------------- --------------------------------------
TOTAL LIABILITIES & SHAREHOLDERS' EQUITY 23,602,176 23,707,501 (105,325) 5,656,949 6,090,844 (433,895)
------------------------------------------- --------------------------------------
------------------------------------------- --------------------------------------
</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) DEC 31, 1997 NOV 30, 1997
DEC 31, 1997 NOV 30, 1997 CONTINUING CONTINUING
CORPORATE CORPORATE CHANGE OPERATIONS OPERATIONS CHANGE
------------------------------------------- --------------------------------------
<S> <C> <C> <C> <C> <C> <C>
CURRENT ASSETS
Cash 226,024 184,122 41,902 491,931 215,982 275,949
Restricted cash held in escrow - - - 2,614,909 2,614,801 108
Accounts receivable - - - - - -
A/R--trade 144,431 144,431 - 14,889,372 14,768,692 120,680
A/R--interco - - - 43,906 50,468 (6,562)
A/R--employees - - - 41,074 42,318 (1,244)
A/R--supplemental - 1,724,603 1,481,112 243,491
A/R--misc. 1,076,094 1,073,066 3,028 1,100,419 1,090,403 10,016
Allowance for doubtful accounts (1,138,467) (1,138,467) - (3,745,946) (3,583,951) (161,995)
------------------------------------------- --------------------------------------
Accounts receivable, net 82,058 79,030 3,028 14,053,428 13,849,042 204,386
------------------------------------------- --------------------------------------
Costs and earnings in excess of billings - - - 6,061,123 7,014,019 (952,896)
Prepaid expenses 632,116 574,954 57,162 829,361 764,061 65,300
Inventory - - - 3,678,632 3,516,464 162,168
Inventory reserve - - - (1,319,668) (1,174,615) (145,053)
------------------------------------------- --------------------------------------
Inventory, net - - - 2,358,964 2,341,849 17,115
------------------------------------------- --------------------------------------
Other current assets - - - - - -
------------------------------------------- --------------------------------------
TOTAL CURRENT ASSETS 940,198 838,106 102,092 26,409,716 26,799,754 (390,038)
------------------------------------------- --------------------------------------
PROPERTY AND EQUIPMENT
Field equipment - - - 2,405,560 2,427,839 (22,279)
Automotive equipment - - - 1,558,949 1,542,601 16,348
Office furniture and equipment 311,292 311,292 - 2,198,727 2,193,857 4,870
Equipment under capital leases - - - -
Leasehold improvements 21,780 21,780 - 201,643 203,723 (2,080)
------------------------------------------- --------------------------------------
TOTAL PROPERTY & EQUIP., AT COST 333,072 333,072 - 6,364,879 6,368,020 (3,141)
Accum. Depreciation (272,260) (269,823) (2,437) (3,683,275) (3,604,956) (78,319)
------------------------------------------- --------------------------------------
TOTAL PROPERTY & EQUIP., NET 60,812 63,249 (2,437) 2,681,604 2,763,064 (81,460)
------------------------------------------- --------------------------------------
Long-term receivable - Other (Texas) - - - 992,049 958,716 33,333
Other Assets 467,800 466,312 1,488 644,566 644,478 88
Investment & Intercompany in Subsidiaires 74,785,282 74,785,282 - 74,785,282 74,785,282 -
------------------------------------------- --------------------------------------
TOTAL ASSETS 76,254,092 76,152,949 101,143 105,513,217 105,951,294 (438,077)
------------------------------------------- --------------------------------------
------------------------------------------- --------------------------------------
POST PETITION CURRENT LIABILITIES
Accounts payable 135,566 183,027 (47,461) 561,466 728,419 (166,953)
Line of Credit 20,097,103 19,966,112 130,991 20,097,103 19,966,112 130,991
Accrued expenses, excluding bankruptcy costs 680,377 543,889 136,488 1,840,268 1,819,387 20,881
Accrued bankruptcy costs 2,082,839 1,932,839 150,000 2,082,839 1,932,839 150,000
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 - 16,825,851 16,340,311 485,540
Intercompany payables 714 - 714 5,204 147,668 (142,464)
------------------------------------------- --------------------------------------
TOTAL POST PETITION CURRENT LIABILITIES 22,996,599 22,625,867 370,732 43,973,333 43,495,338 477,995
Intercompany - BNYFC (19,868,922) (20,131,571) 262,649 (19,868,922) (20,131,571) 262,649
Intercompany Notes Payable - - - 8,741,768 8,741,768 -
Pre Petition Liabilities 2,550,481 2,549,737 744 5,984,396 5,995,119 (10,723)
Pre Petition Estimated Construction Claims - - - - - -
------------------------------------------- --------------------------------------
TOTAL LIABILITIES 5,678,158 5,044,033 634,125 38,830,575 38,100,655 729,921
------------------------------------------- --------------------------------------
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) (49,321,103) - (79,652,104 (79,652,104) -
Y-T-D net income pre petition (895,498) (895,498) - (1,169,888) (1,169,888) -
Y-T-D net income post petition (6,970,878) (6,437,896) (532,982) (12,164,005) (10,996,007) (1,167,998)
------------------------------------------- --------------------------------------
TOTAL SHAREHOLDERS' EQUITY 70,575,934 71,108,916 (532,982) 66,682,642 67,850,640 (1,167,998)
------------------------------------------- --------------------------------------
TOTAL LIABILITIES & SHAREHOLDERS' EQUITY 76,254,092 76,152,949 101,143 105,513,217 105,951,294 (438,077)
------------------------------------------- --------------------------------------
------------------------------------------- --------------------------------------
</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)
DEC 31, 1997 NOV 30, 1997 DEC 31, 1997 NOV 30, 1997
DISCONTINUED DISCONTINUED COMBINED COMBINED
OPERATIONS OPERATIONS CHANGE FINAL FINAL CHANGE
------------------------------------------- --------------------------------------
<S> <C> <C> <C> <C> <C> <C>
CURRENT ASSETS
Cash 27,210 55,766 (28,556) 519,141 271,748 247,393
Restricted cash held in escrow - - - 2,614,909 2,614,801 108
Accounts receivable
A/R--trade 6,780,883 7,659,625 (878,742) 21,670,255 22,428,317 (758,062)
A/R--interco 5,004 163,509 (158,505) 0 - 0
A/R--employees 1,200 2,041 (841) 42,274 44,359 (2,085)
A/R--supplemental - 1,724,603 1,481,112 243,491
A/R--misc. 151,471 151,471 - 1,251,890 1,241,874 10,016
Allowance for doubtful accounts (3,199,189) (3,198,040) (1,149) (6,945,135) (6,781,991) (163,144)
------------------------------------------- --------------------------------------
Accounts receivable, net 3,739,369 4,778,606 (1,039,237) 17,743,887 18,413,671 (669,784)
------------------------------------------- --------------------------------------
Costs and earnings in excess of billings - - - 6,061,123 7,014,019 (952,896)
Prepaid expenses - - - 829,361 764,061 65,300
Inventory - - - 3,678,632 3,516,464 162,168
Inventory reserve - - - (1,319,668) (1,174,615) (145,053)
------------------------------------------- --------------------------------------
Inventory, net - - - 2,358,964 2,341,849 17,115
------------------------------------------- --------------------------------------
Other current assets 115,696 31,230 84,466 115,696 31,230 84,466
------------------------------------------- --------------------------------------
TOTAL CURRENT ASSETS 3,882,275 4,865,602 (983,327) 30,243,081 31,451,379 (1,208,298)
------------------------------------------- --------------------------------------
PROPERTY AND EQUIPMENT
Field equipment 187,180 187,180 - 2,592,740 2,615,019 (22,279)
Automotive equipment 118,074 118,074 - 1,677,023 1,660,675 16,348
Office furniture and equipment 23,796 23,796 - 2,222,523 2,217,653 4,870
Equipment under capital leases - -
Leasehold improvements 136,072 136,072 - 337,715 339,795 (2,080)
------------------------------------------- --------------------------------------
TOTAL PROPERTY & EQUIP., AT COST 465,121 465,121 - 6,830,001 6,833,142 (3,141)
Accum. Depreciation (321,523) (317,712) (3,811) (4,004,798) (3,922,668) (82,130)
------------------------------------------- --------------------------------------
TOTAL PROPERTY & EQUIP., NET 143,599 147,410 (3,811) 2,825,203 2,910,474 (85,271)
------------------------------------------- --------------------------------------
Long-term receivable - Other (Texas) - - - 992,049 958,716 33,333
Other Assets 20,815 20,815 - 665,381 665,293 88
Investment & Intercompany in Subsidiaires - - - 425,000 425,000 -
------------------------------------------- --------------------------------------
TOTAL ASSETS 4,046,689 5,033,827 (987,138) 35,150,714 36,410,862 (1,260,148)
------------------------------------------- --------------------------------------
------------------------------------------- --------------------------------------
POST PETITION CURRENT LIABILITIES
Accounts payable 45,478 75,329 (29,851) 606,944 806,963 (200,019)
Line of Credit - - - 20,097,103 19,966,112 130,991
Accrued expenses, excluding bankruptcy costs 17,009 7,142 9,867 1,857,278 1,826,530 30,748
Accrued bankruptcy costs - - - 2,082,839 1,932,839 150,000
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 3,043,071 3,794,479 (751,408) (0) - (0)
Intercompany payables 43,706 66,305 (22,599) - - -
------------------------------------------- --------------------------------------
TOTAL POST PETITION CURRENT LIABILITIES 3,149,264 3,943,255 (793,991) 27,204,766 27,093,046 111,720
Intercompany - BNYFC - -
Intercompany Notes Payable 2,535,455 2,535,455 - - -
Pre Petition Liabilities 10,788,167 10,862,850 (74,683) 16,772,564 16,857,970 (85,406)
Pre Petition Estimated Construction Claims 2,904,000 2,904,000 - 2,904,000 2,904,000 -
------------------------------------------- --------------------------------------
TOTAL LIABILITIES 19,376,886 20,245,560 (868,674) 46,881,329 46,855,015 26,314
------------------------------------------- --------------------------------------
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) (112,005,443) -
Y-T-D net income pre petition (676,048) (676,048) - (1,845,936) (1,845,936) -
Y-T-D net income post petition (9,754,390) (9,635,926) (118,464) (21,918,395) (20,631,933) (1,286,462)
------------------------------------------- --------------------------------------
TOTAL SHAREHOLDERS' EQUITY (15,330,197) (15,211,734) (118,464) (11,730,615) (10,444,153) (1,286,462)
------------------------------------------- --------------------------------------
TOTAL LIABILITIES & SHAREHOLDERS' EQUITY 4,046,689 5,033,827 (987,138) 35,150,714 36,410,862 (1,260,148)
------------------------------------------- --------------------------------------
------------------------------------------- --------------------------------------
</TABLE>
See accompanying notes to financial statement information
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
DEC 31, 1997 NOV 30, 1997 DEC 31, 1997 NOV 30, 1997
ESD ESD CHANGE PSD PSD CHANGE
------------------------------------------- --------------------------------------
<S> <C> <C> <C> <C> <C> <C>
Sales 1,246,710 1,167,422 79,288 851,461 967,773 (116,312)
Cost of Sales 772,188 747,441 24,747 812,375 866,765 (54,390)
------------------------------------------- --------------------------------------
Gross Profit 474,522 419,981 54,541 39,086 101,008 (61,922)
Selling, General, and Administrative 381,103 374,851 6,252 309,619 249,062 60,557
------------------------------------------- --------------------------------------
Income (Loss) From Operations 93,419 45,130 48,289 (270,533) (148,054) (122,479)
Other Income(Expense):
I/C Interest Income (Expense) (86,233) (84,906) (1,327) (73,328) (72,825) (503)
Interest Expense (1,229) (1,798) 569 - - -
Interest Income 108 13 95 - - -
Gain (loss) on Asset Disposition 4,643 3,550 1,093 400 - 400
Other Expense (298,205) (60,975) (237,230) (4,058) (9,039) 4,981
Other Income - - - - - -
------------------------------------------- --------------------------------------
Total Other Income (Expense) (380,916) (144,116) (236,800) (76,986) (81,864) 4,878
------------------------------------------- --------------------------------------
Net Loss Before Bankruptcy (287,497) (98,986) (188,511) (347,519) (229,918) (117,601)
Administrative Expenses
Bankruptcy Administrative Expenses
------------------------------------------- --------------------------------------
Net Loss (287,497) (98,986) (188,511) (347,519) (229,918) (117,601)
------------------------------------------- --------------------------------------
------------------------------------------- --------------------------------------
</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 DEC 31, 1997 NOV 30, 1997
DEC 31, 1997 NOV 30, 1997 CONTINUING CONTINUING
CORPORATE CORPORATE CHANGE OPERATIONS OPERATIONS CHANGE
------------------------------------------- --------------------------------------
<S> <C> <C> <C> <C> <C> <C>
Sales - - - 2,098,171 2,135,195 (37,024)
Cost of Sales - - - 1,584,563 1,614,206 (29,643)
------------------------------------------- --------------------------------------
Gross Profit - - - 513,608 520,989 (7,381)
Selling, General, and Administrative 366,826 292,906 73,920 1,057,548 916,819 140,729
Income (Loss) From Operations (366,826) (292,906) (73,920) (543,940) (395,830) (148,110)
------------------------------------------- --------------------------------------
Other Income(Expense):
I/C Interest Income (Expense) 159,592 157,731 1,861 31 - 31
Interest Expense (179,839) (177,659) (2,180) (181,068) (179,457) (1,611)
Interest Income 1,487 1,446 41 1,595 1,459 136
Gain (loss) on Asset Disposition - - - 5,043 3,550 1,493
Other Expense - - - (302,263) (70,014) (232,249)
Other Income 2,604 4,118 (1,514) 2,604 4,118 (1,514)
------------------------------------------- --------------------------------------
Total Other Income (Expense) (16,156) (14,364) (1,792) (474,058) (240,344) (233,714)
------------------------------------------- --------------------------------------
Net Loss Before Bankruptcy (382,982) (307,270) (75,712) (1,017,998) (636,174) (381,824)
Administrative Expenses
Bankruptcy Administrative Expenses (150,000) (110,665) (39,335) (150,000) (110,665) (39,335)
------------------------------------------- --------------------------------------
Net Loss (532,982) (417,935) (115,047) (1,167,998) (746,839) (421,159)
------------------------------------------- --------------------------------------
------------------------------------------- --------------------------------------
</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 END MONTH ENDED
DEC 31, 1997 NOV 30, 1997 DEC 31, 1997 NOV 30, 1997
DISCONTINUED DISCONTINUED COMBINED COMBINED
OPERATIONS OPERATIONS CHANGE FINAL FINAL CHANGE
------------------------------------------- --------------------------------------
<S> <C> <C> <C> <C> <C> <C>
Sales - 293,892 (293,892) 2,051,847 2,359,093 (307,246)
Cost of Sales - 235,814 (235,814) 1,538,239 1,780,026 (241,787)
------------------------------------------- --------------------------------------
Gross Profit - 58,077 (58,077) 513,608 579,066 (65,458)
Selling, General, and Administrative 77,068 85,839 (8,771) 1,134,616 1,002,658 131,958
------------------------------------------- --------------------------------------
Income (Loss) From Operations (77,068) (27,761) (49,307) (621,008) (423,591) (197,417)
Other Income(Expense):
I/C Interest Income (Expense) 7,246 - 7,246 7,277 - 7,277
Interest Expense - - - (181,068) (179,457) (1,611)
Interest Income - 1,309 (1,309) 1,595 2,768 (1,173)
Gain (loss) on Asset Disposition - (0) 0 5,043 3,550 1,493
Other Expense (57,269) 4,335 (61,604) (359,532) (65,679) (293,853)
Other Income 8,627 0 8,627 11,231 4,118 7,113
------------------------------------------- --------------------------------------
Total Other Income (Expense) (41,396) 5,644 (47,040) (515,454) (234,700) (280,754)
------------------------------------------- --------------------------------------
Net Loss Before Bankruptcy (118,464) (22,117) (96,347) (1,136,462) (658,291) (478,171)
Administrative Expenses
Bankruptcy Administrative Expenses (150,000) (110,665) (39,335)
------------------------------------------- --------------------------------------
Net Loss (118,464) (22,117) (96,347) (1,286,462) (768,956) (517,506)
------------------------------------------- --------------------------------------
------------------------------------------- --------------------------------------
</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
DECEMBER 31, 1997 NOVEMBER 30, 1997 CHANGE
------------------ ----------------- --------
<S> <C> <C> <C>
Cash flows from operating activities:
Net loss ($1,286,462) ($768,956) ($517,506)
Adjustments to reconcile net loss to net cash
(used in) provided by operating activities:
Depreciation 87,939 96,728 (8,789)
Additional Inventory Reserves in Discontinued Operations 0 180,000 (180,000)
(Gain) Loss on sale of property and equipment (5,043) 0 (5,043)
Change in certain assets & liabilities:
(Increase) decrease in:
Receivables 669,784 362,000 307,784
Costs in excess of billings 952,896 375,402 577,494
Inventory (17,115) 124,119 (141,234)
Prepaids & other assets (149,766) (115,833) (33,933)
Increase (decrease) in:
Accounts payable (200,019) 138,501 (338,520)
Accrued expenses 180,748 212,249 (31,501)
Other net changes in assets and liabilities (33,529) (166,289) 132,760
----------- ---------- ----------
Total adjustments 1,485,895 1,206,877 279,019
----------- ---------- ----------
Net cash provided by (used in) operating activities 199,433 437,921 (238,487)
Cash flows from investing activities :
Proceeds from sale of equipment 14,286 0 14,286
Additions to property and equipment (11,911) (301) (11,610)
----------- ---------- ----------
Net cash provided by (used in) investing activities 2,375 (301) 2,676
Cash flows from financing and other activities:
Net proceeds (repayments) from revolver credit loan 130,991 (277,173) 408,164
Increase (decrease) in pre petition liabilities (85,406) (76,349) (9,057)
----------- ---------- ----------
Net cash provided by (used in) financing activities 45,585 (353,522) 399,107
----------- ---------- ----------
Net increase (decrease) in cash 247,393 84,098 163,296
CASH AT BEGINNING OF PERIOD 271,748 187,651 84,097
----------- ---------- ----------
CASH AT END OF PERIOD $519,141 $271,748 $247,393
----------- ---------- ----------
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</TABLE>
See accompanying notes to financial statement information
<PAGE>
EXHIBIT 99.1
Omega Environmental, Inc.
Debtor in Possession Case # 97-06084
December 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 December 31, 1997, the Company's borrowings under the debtor-in-
possession financing agreement with BNY Financial Corporation ("BNYFC") were
$20,097,103 which exceeded the $17,000,000 borrowing limit in the debtor-in-
possession financing agreement by $3,097,103. Additionally, the Company's
borrowings exceeded the collateral formula by 11,436,000. Omega is currently
negotiating with BNYFC for an extension of its debtor-in-possession financing
agreement to carry it through the reorganization process. To date, however,
Omega has been unable to reach agreement with BNYFC.
