<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) January 13, 1998
---------------------------
OMEGA ENVIRONMENTAL, INC.
(EXACT NAME OF REGISTRANT AS SPECIFIED IN ITS CHARTER)
Commission File Number 0-20267
DELAWARE
(STATE OR OTHER JURISDICTION OF 91-1499751
INCORPORATION OR ORGANIZATION) (I.R.S. EMPLOYER 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
UNAUDITED FINANCIAL STATEMENT INFORMATION
On January 13, 1998, the Registrant filed unaudited financial
statement information as of and for each of the months ended November,
30, 1997 and October 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 November 30, 1997 and October 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: January 13, 1998 /s/ Stanford Springel
--------------------------
Stanford Springel
President
<PAGE>
OMEGA ENVIRONMENTAL, INC. EXHIBIT 99.1
DEBTOR IN POSESSION CASE #97-06084
COMPARATIVE BALANCE SHEET INFORMATION
<TABLE>
<CAPTION>
(UNAUDITED) (UNAUDITED) (UNAUDITED) (UNAUDITED)
NOV 30, 1997 OCT 31, 1997 NOV 30, 1997 OCT 31, 1997
ESD ESD CHANGE PSD PSD CHANGE
-------------------------------------------- -----------------------------------------
<S> <C> <C> <C> <C> <C> <C>
CURRENT ASSETS
Cash 2,802 2,193 609 29,058 17,549 11,509
Restricted cash held in escrow 2,614,801 2,614,801 - - - -
Accounts receivable - - - -
A/R--trade 11,912,354 11,361,193 551,161 2,711,907 2,724,121 (12,214)
A/R--interco 46,535 8,757 37,778 3,933 102,425 (98,492)
A/R--employees 10,265 5,699 4,566 32,053 30,035 2,018
A/R--supplemental 1,481,112 1,385,610 95,502 -
A/R--misc. 17,337 94,850 (77,513) - - -
Allowance for doubtful accounts (2,240,791) (2,129,138) (111,653) (204,693) (294,463) 89,770
-------------------------------------------- -----------------------------------------
Accounts receivable, net 11,226,812 10,726,971 499,841 2,543,200 2,562,118 (18,918)
-------------------------------------------- -----------------------------------------
Costs and earnings in excess of
billings 7,014,019 7,389,421 (375,402) - - -
Prepaid expenses 28,903 39,585 (10,682) 160,204 122,824 37,380
Inventory 18,310 18,315 (5) 3,498,154 3,437,360 60,794
Inventory reserve - - - (1,174,615) (924,118) (250,497)
-------------------------------------------- -----------------------------------------
Inventory, net 18,310 18,315 (5) 2,323,539 2,513,242 (189,703)
-------------------------------------------- -----------------------------------------
Other current assets - - - - - -
-------------------------------------------- -----------------------------------------
TOTAL CURRENT ASSETS 20,905,647 20,791,286 114,361 5,056,001 5,215,733 (159,732)
-------------------------------------------- -----------------------------------------
PROPERTY AND EQUIPMENT
Field equipment 2,106,819 2,115,519 (8,700) 321,020 321,020 -
Automotive equipment 922,976 937,976 (15,000) 619,625 619,626 (1)
Office furniture and equipment 792,597 791,692 905 1,089,968 895,500 194,468
Equipment under capital leases - -
Leasehold improvements 92,903 90,823 2,080 89,040 37,993 51,047
-------------------------------------------- -----------------------------------------
TOTAL PROPERTY & EQUIP., AT COST 3,915,295 3,936,010 (20,715) 2,119,653 1,874,139 245,514
Accum. Depreciation (2,250,323) (2,211,521) (38,802) (1,084,810) (940,221) (144,589)
-------------------------------------------- -----------------------------------------
TOTAL PROPERTY & EQUIP., NET 1,664,972 1,724,489 (59,517) 1,034,843 933,918 100,925
-------------------------------------------- -----------------------------------------
Long-term receivable - Other (Texas) 958,716 931,981 26,735 - - -
Other Assets 178,166 159,435 18,731 - - -
Investment & Intercompany in
Subsidiaires - - - - - -
-------------------------------------------- -----------------------------------------
TOTAL ASSETS 23,707,501 23,607,191 100,310 6,090,844 6,149,651 (58,807)
-------------------------------------------- -----------------------------------------
-------------------------------------------- -----------------------------------------
POST PETITION CURRENT LIABILITIES
Accounts payable 365,900 263,401 102,499 179,492 173,066 6,426
Line of Credit - - - - - -
Accrued expenses, excluding
bankruptcy costs 663,458 544,390 119,068 612,040 611,117 923
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 8,721,962 8,688,044 33,918 7,618,349 7,479,565 138,784
Intercompany payables 10,122 39,584 (29,462) 137,546 119,217 18,329
-------------------------------------------- -----------------------------------------
TOTAL POST PETITION CURRENT
LIABILITIES 12,322,044 12,096,021 226,023 8,547,427 8,382,965 164,462
Intercompany - BNYFC - - - - - -
Intercompany Notes Payable 8,741,768 8,741,768 - - - -
Pre Petition Liabilities 2,463,068 2,489,795 (26,727) 982,314 975,665 6,649
Pre Petition Estimated Construction
Claims - - - - - -
-------------------------------------------- -----------------------------------------
TOTAL LIABILITIES 23,526,881 23,327,584 199,296 9,529,741 9,358,630 171,111
-------------------------------------------- -----------------------------------------
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 (2,020,969) (1,921,983) (98,986) (2,537,142) (2,307,224) (229,918)
-------------------------------------------- -----------------------------------------
TOTAL SHAREHOLDERS' EQUITY 180,621 279,607 (98,986) (3,438,897) (3,208,979) (229,918)
-------------------------------------------- -----------------------------------------
TOTAL LIABILITIES & SHAREHOLDERS'
EQUITY 23,707,501 23,607,191 100,310 6,090,844 6,149,651 (58,807)
-------------------------------------------- -----------------------------------------
-------------------------------------------- -----------------------------------------
</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)
NOV 30, 1997 OCT 31, 1997 NOV 30, 1997 OCT 31, 1997
CORPORATE CORPORATE CHANGE OPERATIONS OPERATIONS CHANGE
------------------------------------------ ----------------------------------------
<S> <C> <C> <C> <C> <C> <C>
CURRENT ASSETS
Cash 184,122 108,009 76,113 215,982 127,751 88,231
Restricted cash held in escrow - - - 2,614,801 2,614,801 -
Accounts receivable - -
A/R--trade 144,431 144,431 - 14,768,692 14,229,745 538,947
A/R--interco - - - 50,468 111,182 (60,714)
A/R--employees - - - 42,318 35,734 6,584
A/R--supplemental - 1,481,112 1,385,610 95,502
A/R--misc. 1,073,066 1,076,094 (3,028) 1,090,403 1,170,944 (80,541)
Allowance for doubtful accounts (1,138,467) (1,138,467) - (3,583,951) (3,562,068) (21,883)
------------------------------------------ ----------------------------------------
Accounts receivable, net 79,030 82,058 (3,028) 13,849,042 13,371,147 477,895
------------------------------------------ ----------------------------------------
Costs and earnings in excess of billings - - - 7,014,019 7,389,421 (375,402)
Prepaid expenses 574,954 475,232 99,722 764,061 637,641 126,420
Inventory - - - 3,516,464 3,455,675 60,789
Inventory reserve - - - (1,174,615) (924,118) (250,497)
------------------------------------------ ----------------------------------------
Inventory, net - - - 2,341,849 2,531,557 (189,708)
------------------------------------------ ----------------------------------------
Other current assets - - - - - -
------------------------------------------ ----------------------------------------
TOTAL CURRENT ASSETS 838,106 665,299 172,807 26,799,754 26,672,318 127,436
------------------------------------------ ----------------------------------------
PROPERTY AND EQUIPMENT
Field equipment - - - 2,427,839 2,436,539 (8,700)
Automotive equipment - - - 1,542,601 1,557,602 (15,001)
Office furniture and equipment 311,292 311,292 - 2,193,857 1,998,484 195,373
Equipment under capital leases - - - -
Leasehold improvements 21,780 21,780 - 203,723 150,596
------------------------------------------ ----------------------------------------
TOTAL PROPERTY & EQUIP., AT COST 333,072 333,072 - 6,368,020 6,143,221 171,672
Accum. Depreciation (269,823) (267,386) (2,437) (3,604,956) (3,419,128) (185,828)
------------------------------------------ ----------------------------------------
TOTAL PROPERTY & EQUIP., NET 63,249 65,686 (2,437) 2,763,064 2,724,093 (14,156)
------------------------------------------ ----------------------------------------
Long-term receivable - Other (Texas) - - - 958,716 931,981 26,735
Other Assets 466,312 475,838 (9,526) 644,478 635,273 9,205
Investment & Intercompany in Subsidiaires 74,785,283 74,785,283 - 74,785,283 74,785,283 -
------------------------------------------ ----------------------------------------
TOTAL ASSETS 76,152,950 75,992,106 160,844 105,951,295 105,748,948 149,220
------------------------------------------ ----------------------------------------
------------------------------------------ ----------------------------------------
POST PETITION CURRENT LIABILITIES
Accounts payable 183,028 166,790 16,238 728,420 603,257 125,163
Line of Credit 19,966,112 20,243,285 (277,173) 19,966,112 20,243,285 (277,173)
Accrued expenses, excluding bankruptcy costs 543,889 569,387 (25,498) 1,819,387 1,724,894 94,493
Accrued bankruptcy costs 1,932,839 1,822,174 110,665 1,932,839 1,822,174 110,665
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 - 16,340,311 16,167,609 172,702
Intercompany payables - 2,418 (2,418) 147,668 161,219 (13,551)
------------------------------------------ ----------------------------------------
TOTAL POST PETITION CURRENT LIABILITIES 22,625,868 22,804,054 (178,186) 43,495,339 43,283,040 212,299
Intercompany - BNYFC (20,131,571) (20,888,536) 756,965 (20,131,571) (20,888,536) 756,965
Intercompany Notes Payable - - - 8,741,768 8,741,768 -
Pre Petition Liabilities 2,549,737 2,549,737 - 5,995,119 6,015,197 (20,078)
Pre Petition Estimated Construction Claims - - - - - -
------------------------------------------ ----------------------------------------
TOTAL LIABILITIES 5,044,034 4,465,255 578,779 38,100,656 37,151,469 949,186
------------------------------------------ ----------------------------------------
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 (6,437,896) (6,019,961) (417,935) (10,996,007) (10,249,168) (746,839)
------------------------------------------ ----------------------------------------
TOTAL SHAREHOLDERS' EQUITY 71,108,916 71,526,851 (417,935) 67,850,640 68,597,479 (746,839)
------------------------------------------ ----------------------------------------
TOTAL LIABILITIES & SHAREHOLDERS' EQUITY 76,152,950 75,992,106 160,844 105,951,295 105,748,948 202,347
------------------------------------------ ----------------------------------------
------------------------------------------ ----------------------------------------
</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)
NOV 30, 1997 OCT 31, 1997 NOV 30, 1997 OCT 31, 1997
DISCONTINUED DISCONTINUED COMBINED COMBINED
OPERATIONS OPERATIONS CHANGE FINAL FINAL CHANGE
------------------------------------------ ----------------------------------------
<S> <C> <C> <C> <C> <C> <C>
CURRENT ASSETS
Cash 55,766 59,900 (4,134) 271,748 187,651 84,097
Restricted cash held in escrow - - - 2,614,801 2,614,801 -
Accounts receivable
A/R--trade 7,659,625 8,536,784 (877,159) 22,428,317 22,766,529 (338,212)
A/R--interco 163,509 170,937 (7,428) - - -
A/R--employees 2,041 2,284 (243) 44,359 38,018 6,341
A/R--supplemental - 1,481,112 1,385,610 95,502
A/R--misc. 151,471 197,240 (45,769) 1,241,874 1,368,184 (126,310)
Allowance for doubtful accounts (3,198,040) (3,220,602) 22,562 (6,781,991) (6,782,670) 679
------------------------------------------ ----------------------------------------
Accounts receivable, net 4,778,606 5,686,642 (908,036) 18,413,671 18,775,670 (362,000)
------------------------------------------ ----------------------------------------
Costs and earnings in excess of billings - - - 7,014,019 7,389,421 (375,402)
Prepaid expenses - 10,587 (10,587) 764,061 648,228 115,833
Inventory - 1,965,839 (1,965,839) 3,516,464 5,421,514 (1,905,050)
Inventory reserve - (1,851,428) 1,851,428 (1,174,615) (2,775,546) 1,600,931
------------------------------------------ ----------------------------------------
Inventory, net - 114,411 (114,411) 2,341,849 2,645,968 (304,119)
------------------------------------------ ----------------------------------------
Other current assets 31,230 31,230 - 31,230 31,230 -
------------------------------------------ ----------------------------------------
TOTAL CURRENT ASSETS 4,865,602 5,902,770 (1,037,168) 31,451,379 32,292,969 (841,591)
------------------------------------------ ----------------------------------------
PROPERTY AND EQUIPMENT
Field equipment 187,180 315,461 (128,281) 2,615,019 2,752,000 (136,981)
Automotive equipment 118,074 139,394 (21,320) 1,660,675 1,696,996 (36,321)
Office furniture and equipment 23,796 478,280 (454,484) 2,217,653 2,476,764 (259,111)
Equipment under capital leases - -
Leasehold improvements 136,072 189,519 (53,447) 339,795 340,115 (320)
------------------------------------------ ----------------------------------------
TOTAL PROPERTY & EQUIP., AT COST 465,121 1,122,653 (657,532) 6,833,142 7,265,875 (432,733)
Accum. Depreciation (317,712) (970,192) 652,480 (3,922,668) (4,389,320) 466,652
------------------------------------------ ----------------------------------------
TOTAL PROPERTY & EQUIP., NET 147,410 152,462 (5,052) 2,910,474 2,876,555 33,919
------------------------------------------ ----------------------------------------
Long-term receivable - Other (Texas) - - - 958,716 931,981 26,735
Other Assets 20,815 20,811 4 665,293 656,084 9,209
Investment & Intercompany in Subsidiaires - - - 425,000 425,000 -
------------------------------------------ ----------------------------------------
TOTAL ASSETS 5,033,827 6,076,043 (1,042,216) 36,410,862 37,182,590 (771,727)
------------------------------------------ ----------------------------------------
------------------------------------------ ----------------------------------------
POST PETITION CURRENT LIABILITIES
Accounts payable 75,329 65,207 10,122 806,963 668,462 138,501
Line of Credit - - - 19,966,112 20,243,285 (277,173)
Accrued expenses, excluding bankruptcy costs 7,142 52 7,091 1,826,530 1,724,946 101,584
Accrued bankruptcy costs - - - 1,932,839 1,822,174 110,665
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 3,794,479 4,720,928 (926,449) - - -
Intercompany payables 66,305 120,898 (54,592) - - -
------------------------------------------ ----------------------------------------
TOTAL POST PETITION CURRENT LIABILITIES 3,943,255 4,907,084 (963,829) 27,093,046 27,019,469 73,577
Intercompany - BNYFC - -
Intercompany Notes Payable 2,535,455 2,535,455 - - -
Pre Petition Liabilities 10,862,850 10,919,121 (56,271) 16,857,970 16,934,318 (76,349)
Pre Petition Estimated Construction Claims 2,904,000 2,904,000 - 2,904,000 2,904,000 -
------------------------------------------ ----------------------------------------
TOTAL LIABILITIES 20,245,560 21,265,660 (1,020,099) 46,855,015 46,857,787 (2,772)
------------------------------------------ ----------------------------------------
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 (9,635,926) (9,613,810) (22,117) (20,631,933) (19,862,977) (768,956)
------------------------------------------ ----------------------------------------
TOTAL SHAREHOLDERS' EQUITY (15,211,734) (15,189,617) (22,117) (10,444,153) (9,675,197) (768,956)
------------------------------------------ ----------------------------------------
TOTAL LIABILITIES & SHAREHOLDERS' EQUITY 5,033,827 6,076,043 (1,042,216) 36,410,862 37,182,590 (771,727)
------------------------------------------ ----------------------------------------
------------------------------------------ ----------------------------------------
</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
NOV 30, 1997 OCT 31, 1997 NOV 30, 1997 OCT 31, 1997
ESD ESD CHANGE PSD PSD CHANGE
------------------------------------------ ----------------------------------------
<S> <C> <C> <C> <C> <C> <C>
Sales 1,167,422 1,201,399 (33,977) 967,773 918,308 49,465
Cost of Sales 747,441 746,428 1,013 866,765 998,015 (131,250)
------------------------------------------ ----------------------------------------
Gross Profit 419,981 454,971 (34,990) 101,008 (79,707) 180,715
Selling, General, and Administrative 374,851 425,411 (50,560) 249,062 234,893 14,169
------------------------------------------ ----------------------------------------
Income From Operations 45,130 29,560 15,570 (148,054) (314,600) 166,546
Other Income(Expense):
I/C Interest Income (Expense) (84,906) (82,318) (2,588) (72,825) (72,988) 163
Interest Expense (1,798) (1,774) (24) - - -
Interest Income 13 - 13 - - -
Gain (loss) on Asset Disposition 3,550 (56) 3,606 - (14,214) 14,214
Other Expense (60,975) (347,946) 286,971 (9,039) (372,038) 362,999
Other Income - 1,067 (1,067) - - -
------------------------------------------ ----------------------------------------
Total Other Income (Expense) (144,116) (431,027) 286,911 (81,864) (459,240) 377,376
------------------------------------------ ----------------------------------------
Net Income (Loss) Before Bankruptcy
Administrative Expenses (98,986) (401,467) 302,481 (229,918) (773,840) 543,922
Bankruptcy Administrative Expenses -
------------------------------------------ ----------------------------------------
Net Income (Loss) (98,986) (401,467) 302,481 (229,918) (773,840) 543,922
------------------------------------------ ----------------------------------------
------------------------------------------ ----------------------------------------
</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 NOV 30, 1997 OCT 31, 1997
NOV 30, 1997 OCT 31, 1997 CONTINUING CONTINUING
CORPORATE CORPORATE CHANGE OPERATIONS OPERATIONS CHANGE
------------------------------------------ ----------------------------------------
<S> <C> <C> <C> <C> <C> <C>
Sales - - - 2,135,195 2,119,707 15,488
Cost of Sales - - - 1,614,206 1,744,443 (130,237)
------------------------------------------ ----------------------------------------
Gross Profit - - - 520,989 375,264 145,725
Selling, General, and Administrative 292,906 382,340 (89,434) 916,819 1,042,644 (125,825)
------------------------------------------ ----------------------------------------
Income From Operations (292,906) (382,340) 89,434 (395,830) (667,380) 271,550
Other Income(Expense):
I/C Interest Income (Expense) 157,731 155,306 2,425 - - -
Interest Expense (177,659) (181,196) 3,537 (179,457) (182,970) 3,513
Interest Income 1,446 1,476 (30) 1,459 1,476 (17)
Gain (loss) on Asset Disposition - - - 3,550 (14,270) 17,82
Other Expense - (154,023) 154,023 (70,014) (874,007) 803,993
Other Income 4,118 - 4,118 4,118 1,067 3,051
------------------------------------------ ----------------------------------------
Total Other Income (Expense) (14,364) (178,437) 164,073 (240,344) (1,068,704) 828,360
------------------------------------------ ----------------------------------------
Net Income (Loss) Before Bankruptcy
Administrative Expenses (307,270) (560,777) 253,507 (636,174) (1,736,084) 1,099,910
Bankruptcy Administrative Expenses (110,665) (64,310) (46,355) (110,665) (64,310) (46,355)
------------------------------------------ ----------------------------------------
Net Income (Loss) (417,935) (625,087) 207,152 (746,839) (1,800,394) 1,053,555
------------------------------------------ ----------------------------------------
------------------------------------------ ----------------------------------------
</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
NOV 30, 1997 OCT 31, 1997 NOV 30, 1997 OCT 31, 1997
DISCONTINUED DISCONTINUED COMBINED COMBINED
OPERATIONS OPERATIONS CHANGE FINAL FINAL CHANGE
------------------------------------------ ----------------------------------------
<S> <C> <C> <C> <C> <C> <C>
Sales 293,892 195,597 98,294 2,359,093 2,154,527 204,565
Cost of Sales 235,814 166,589 69,225 1,780,026 1,750,255 29,771
------------------------------------------ ----------------------------------------
Gross Profit 58,077 29,008 29,069 579,066 404,272 174,794
Selling, General, and Administrative 85,839 304,450 (218,611) 1,002,658 1,347,094 (344,436)
Income From Operations (27,761) (275,441) 247,680 (423,591) (942,821) 519,230
Other Income(Expense):
I/C Interest Income (Expense) - - - - - -
Interest Expense - (24) 24 (179,457) (182,994) 3,537
Interest Income 1,309 - 1,309 2,768 1,476 1,292
Gain (loss) on Asset Disposition (0) (17,705) 17,705 3,550 (31,975) 35,525
Other Expense 4,335 (141,994) 146,329 (65,679) (1,016,001) 950,322
Other Income 0 108,029 (108,028) 4,118 109,096 (104,977)
------------------------------------------ ----------------------------------------
Total Other Income (Expense) 5,644 (51,694) 57,338 (234,700) (1,120,398) 885,698
------------------------------------------ ----------------------------------------
Net Income (Loss) Before Bankruptcy
Administrative Expenses (22,117) (327,135) 305,018 (658,291) (2,063,219) 1,404,928
Bankruptcy Administrative Expenses - (110,665) (64,310) (46,355)
------------------------------------------ ----------------------------------------
Net Income (Loss) (22,117) (327,135) 305,018 (768,956) (2,127,529) 1,358,573
------------------------------------------ ----------------------------------------
------------------------------------------ ----------------------------------------
</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
NOVEMBER 30, 1997 OCTOBER 31, 1997 CHANGE
-------------------- ------------------- ------------
<S> <C> <C> <C>
Cash flows from operating activities:
Net loss ($768,956) ($2,127,529) $1,358,573
Adjustments to reconcile net loss to net cash
(used in) provided by operating activities:
Depreciation 96,728 110,144 (13,416)
Additional Inventory Reserves in Discontinued Operations 180,000 0 180,000
Write down of property and equipment in Discontinued Operations 0 0 0
(Gain) Loss on sale of property and equipment 0 31,975 (31,975)
Change in certain assets & liabilities:
(Increase) decrease in:
Receivables 362,000 353,648 8,352
Costs in excess of billings 375,402 890,349 (514,947)
Inventory 124,119 287,188 (163,069)
Prepaids & other assets (115,833) (96,859) (18,973)
Increase (decrease) in:
Accounts payable 138,501 (142,048) 280,549
Accrued expenses 212,249 199,256 12,993
Billings in excess of costs 0 (24,840) 24,840
Other net changes in assets and liabilities (166,289) (132,059) (34,230)
-------------------- ------------------- ------------
Total adjustments 1,206,877 1,476,753 (269,876)
-------------------- ------------------- ------------
Net cash provided by (used in) operating activities 437,921 (650,776) 1,088,697
Cash flows from investing activities :
Proceeds from sale of equipment 0 6,150 (6,150)
Additions to property and equipment (301) (41,271) 40,970
-------------------- ------------------- ------------
Net cash provided by (used in) investing activities (301) (35,121) 34,820
Cash flows from financing and other activities:
Net proceeds (repayments) from revolver credit loan (277,173) 1,348,108 (1,625,281)
Increase (decrease) in pre petition liabilities (76,349) (855,525) 779,176
-------------------- ------------------- ------------
Net cash provided by (used in) financing activities (353,522) 492,583 (846,105)
-------------------- ------------------- ------------
Net increase (decrease) in cash 84,098 (193,314) 277,412
CASH AT BEGINNING OF PERIOD 187,651 380,965 (193,314)
-------------------- ------------------- ------------
CASH AT END OF PERIOD $271,748 $187,651 $84,097
-------------------- ------------------- ------------
-------------------- ------------------- ------------
</TABLE>
See accompanying notes to financial statement information.
<PAGE>
EXHIBIT 99.1
Omega Environmental, Inc.
Debtor in Possession Case # 97-06084
November 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 November 30, 1997, the Company's borrowings under the debtor-in-possession
financing agreement with BNY Financial Corporation ("BNYFC") were $19,966,112
which exceeded the $17,000,000 borrowing limit in the debtor-in-possession
financing agreement by $2,966,112. Additionally, the Company's borrowings
exceeded the collateral formula by 11,000,000. The Company is in the process of
negotiating an extension to its financing agreement with BNYFC which expires
December 31, 1997.
