<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 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 March 19, 1998, the Registrant filed unaudited financial
statement information as of and for each of the months ended
January 31, 1998 and December 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 January 31, 1998 and
December 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: 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)
JAN 31, 1998 DEC 31, 1997 JAN 31, 1998 DEC 31, 1997
ESD ESD CHANGE PSD PSD CHANGE
--------------------------------------- ---------------------------------------
<S> <C> <C> <C> <C> <C> <C>
CURRENT ASSETS
Cash - 204,935 (204,935) 32,427 60,972 (28,545)
Restricted cash held in escrow 2,615,035 2,614,909 126 - - -
Accounts receivable - - - -
A/R--trade 12,212,079 12,513,883 (301,804) 2,165,575 2,231,058 (65,483)
A/R--interco 2,797 42,513 (39,716) 600 1,393 (793)
A/R--employees 13,540 8,063 5,477 20,483 33,011 (12,528)
A/R--supplemental 1,831,118 1,724,603 106,515 -
A/R--misc. 114 24,325 (24,211) - - -
Allowance for doubtful accounts (2,485,969) (2,417,129) (68,840) (156,734) (190,350) 33,616
--------------------------------------- ---------------------------------------
Accounts receivable, net 11,573,679 11,896,258 (322,579) 2,029,924 2,075,112 (45,188)
--------------------------------------- ---------------------------------------
Costs and earnings in excess of billings 5,801,236 6,061,123 (259,887) - - -
Prepaid expenses 15,254 47,521 (32,267) 147,870 149,724 (1,854)
Inventory 6,575 8,837 (2,262) 3,843,274 3,669,795 173,479
Inventory reserve - - - (1,475,823) (1,319,668) (156,155)
--------------------------------------- ---------------------------------------
Inventory, net 6,575 8,837 (2,262) 2,367,451 2,350,127 17,324
--------------------------------------- ---------------------------------------
Other current assets - - - - - -
--------------------------------------- ---------------------------------------
TOTAL CURRENT ASSETS 20,011,779 20,833,583 (821,804) 4,577,672 4,635,935 (58,263)
--------------------------------------- ---------------------------------------
PROPERTY AND EQUIPMENT
Field equipment 2,085,155 2,082,262 2,893 323,298 323,298 -
Automotive equipment 939,324 939,324 - 619,625 619,625 -
Office furniture and equipment 790,707 791,304 (597) 1,094,950 1,096,131 (1,181)
Equipment under capital leases - -
Leasehold improvements 90,823 90,823 (0) 89,040 89,040 -
--------------------------------------- ---------------------------------------
TOTAL PROPERTY & EQUIP., AT COST 3,906,009 3,903,713 2,296 2,126,913 2,128,094 (1,181)
Accum. Depreciation (2,360,432) (2,303,935) (56,497) (1,129,350) (1,107,080) (22,270)
--------------------------------------- ---------------------------------------
TOTAL PROPERTY & EQUIP., NET 1,545,577 1,599,778 (54,201) 997,563 1,021,014 (23,451)
--------------------------------------- ---------------------------------------
Long-term accounts receivable - Other (Texas) 1,031,768 992,049 39,719 - - -
Other Assets 177,425 176,766 659 - - -
Investment & Intercompany in Subsidiaries - - - - - -
--------------------------------------- ---------------------------------------
TOTAL ASSETS 22,766,549 23,602,176 (835,627) 5,575,235 5,656,949 (81,714)
--------------------------------------- ---------------------------------------
--------------------------------------- ---------------------------------------
POST PETITION CURRENT LIABILITIES
Accounts payable 248,234 174,755 73,479 170,356 251,145 (80,789)
Line of Credit - - - - - -
Accrued expenses, excluding bankruptcy costs 521,158 659,916 (138,758) 492,913 499,975 (7,062)
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 8,568,693 9,115,920 (547,227) 7,960,560 7,709,931 250,629
Intercompany payables 4,411 4,490 (79) 959 - 959
--------------------------------------- ---------------------------------------
TOTAL POST PETITION CURRENT LIABILITIES 11,903,098 12,515,683 (612,585) 8,624,788 8,461,051 163,737
Intercompany - BNYFC - - - - - -
Intercompany Notes Payable 8,741,768 8,741,768 - - - -
Pre Petition Liabilities 2,379,450 2,451,603 (72,153) 982,314 982,314 -
Pre Petition Estimated Construction Claims - - - - - -
--------------------------------------- ---------------------------------------
TOTAL LIABILITIES 23,024,316 23,709,052 (684,737) 9,607,102 9,443,365 163,737
--------------------------------------- ---------------------------------------
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 (15,563,780) (15,563,780) (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 (2,459,356) (2,308,466) (150,890) (3,130,112) (2,884,661) (245,451)
--------------------------------------- ---------------------------------------
TOTAL SHAREHOLDERS' EQUITY (257,767) (106,876) (150,890) (4,031,867) (3,786,416) (245,451)
--------------------------------------- ---------------------------------------
TOTAL LIABILITIES & SHAREHOLDERS' EQUITY 22,766,549 23,602,176 (835,627) 5,575,235 5,656,949 (81,714)
--------------------------------------- ---------------------------------------
--------------------------------------- ---------------------------------------
</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) JAN 31, 1998 DEC 31, 1997
JAN 31, 1998 DEC 31, 1997 CONTINUING CONTINUING
CORPORATE CORPORATE CHANGE OPERATIONS OPERATIONS CHANGE
--------------------------------------- ---------------------------------------
<S> <C> <C> <C> <C> <C> <C>
CURRENT ASSETS
Cash 32,102 226,024 (193,922) 64,529 491,931 (427,402)
Restricted cash held in escrow - - - 2,615,035 2,614,909 126
Accounts receivable - -
A/R--trade 144,431 144,431 - 14,522,085 14,889,372 (367,287)
A/R--interco 249,398 - 249,398 252,795 43,906 208,889
A/R--employees - - - 34,023 41,074 (7,051)
A/R--supplemental - 1,831,118 1,724,603 106,515
A/R--misc. 1,076,170 1,076,094 76 1,076,284 1,100,419 (24,135)
Allowance for doubtful accounts (1,138,467) (1,138,467) - (3,781,170) (3,745,946) (35,224)
--------------------------------------- ---------------------------------------
Accounts receivable, net 331,532 82,058 249,474 13,935,135 14,053,428 (118,293)
--------------------------------------- ---------------------------------------
Costs and earnings in excess of billings - - - 5,801,236 6,061,123 (259,887)
Prepaid expenses 592,451 632,116 (39,665) 755,575 829,361 (73,786)
Inventory - - - 3,849,849 3,678,632 171,217
Inventory reserve - - - (1,475,823) (1,319,668) (156,155)
--------------------------------------- ---------------------------------------
Inventory, net - - - 2,374,026 2,358,964 15,062
--------------------------------------- ---------------------------------------
Other current assets - - - - - -
--------------------------------------- ---------------------------------------
TOTAL CURRENT ASSETS 956,085 940,198 15,887 25,545,536 26,409,716 (864,180)
--------------------------------------- ---------------------------------------
PROPERTY AND EQUIPMENT
Field equipment - - - 2,408,453 2,405,560 2,893
Automotive equipment - - - 1,558,949 1,558,949 -
Office furniture and equipment 311,292 311,292 - 2,196,949 2,198,727 (1,778)
Equipment under capital leases - - - -
Leasehold improvements 21,780 21,780 - 201,643 201,643 (0)
--------------------------------------- ---------------------------------------
TOTAL PROPERTY & EQUIP., AT COST 333,072 333,072 - 6,365,994 6,364,879 1,115
Accum. Depreciation (274,334) (272,260) (2,074) (3,764,116) (3,683,275) (80,841)
--------------------------------------- ---------------------------------------
TOTAL PROPERTY & EQUIP., NET 58,738 60,812 (2,074) 2,601,878 2,681,604 (79,726)
--------------------------------------- ---------------------------------------
Long-term accounts receivable - Other (Texas) - - - 1,031,768 992,049 39,719
Other Assets 469,516 467,800 1,716 646,941 644,566 2,375
Investment & Intercompany in Subsidiaries 74,785,282 74,785,282 - 74,785,282 74,785,282 -
--------------------------------------- ---------------------------------------
TOTAL ASSETS 76,269,621 76,254,092 15,529 104,611,405 105,513,217 (901,812)
--------------------------------------- ---------------------------------------
--------------------------------------- ---------------------------------------
POST PETITION CURRENT LIABILITIES
Accounts payable 69,347 135,566 (66,219) 487,937 561,466 (73,529)
Line of Credit 20,076,141 20,097,103 (20,962) 20,076,141 20,097,103 (20,962)
Accrued expenses, excluding bankruptcy costs 632,291 680,377 (48,086) 1,646,362 1,840,268 (193,906)
Accrued bankruptcy costs 2,232,839 2,082,839 150,000 2,232,839 2,082,839 150,000
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 (19,415,129) (19,868,922) 453,793 (2,885,876) (3,043,071) 157,195
Intercompany payables - 714 (714) 5,370 5,205 165
--------------------------------------- ---------------------------------------
TOTAL POST PETITION CURRENT LIABILITIES 3,595,489 22,996,599 467,812 24,123,375 24,104,411 18,963
Intercompany - BNYFC - - - -
Intercompany Notes Payable - - - 8,741,768 8,741,768 -
Pre petition Liabilities 2,536,070 2,550,481 (14,411) 5,897,834 5,984,396 (86,562)
Pre petition Estimated Construction Claims - - - - - -
--------------------------------------- ---------------------------------------
TOTAL LIABILITIES 6,131,559 5,678,158 453,401 38,762,977 38,830,575 (67,599)
--------------------------------------- ---------------------------------------
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) (79,652,105) (79,652,105)
Y-T-D net income pre petition (895,498) (895,498) (1,169,888) (1,169,888)
Y-T-D net income post petition (7,408,750) (6,970,878) (437,872) (12,998,218) (12,164,005) (834,213)
--------------------------------------- ---------------------------------------
TOTAL SHAREHOLDERS' EQUITY 70,138,062 70,575,934 (437,872) 65,848,428 66,682,642 (834,213)
--------------------------------------- ---------------------------------------
TOTAL LIABILITIES & SHAREHOLDERS' EQUITY 76,269,621 76,254,092 15,529 104,611,405 105,513,217 (901,812)
--------------------------------------- ---------------------------------------
--------------------------------------- ---------------------------------------
</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)
JAN 31, 1998 DEC 31, 1997 JAN 31, 1998 DEC 31, 1997
DISCONTINUED DISCONTINUED COMBINED COMBINED
OPERATIONS OPERATIONS CHANGE FINAL FINAL CHANGE
--------------------------------------- ---------------------------------------
<S> <C> <C> <C> <C> <C> <C>
CURRENT ASSETS
Cash 3,602 27,210 (23,608) 68,131 519,141 (451,010)
Restricted cash held in escrow - - - 2,615,035 2,614,909 126
Accounts receivable
A/R--trade 6,485,992 6,780,883 (294,891) 21,008,077 21,670,255 (662,178)
A/R--interco 3,811 5,004 (1,193) - 0 (0)
A/R--employees 4,400 1,200 3,200 38,423 42,274 (3,851)
A/R--supplemental - 1,831,118 1,724,603 106,515
A/R--misc. 152,384 151,471 913 1,228,668 1,251,890 (23,222)
Allowance for doubtful accounts (3,243,198) (3,199,189) (44,009) (7,024,368) (6,945,135) (79,233)
--------------------------------------- ----------------------------------------
Accounts receivable, net 3,403,389 3,739,369 (335,980) 17,081,918 17,743,887 (661,969)
--------------------------------------- ----------------------------------------
Costs and earnings in excess of billings - - - 5,801,236 6,061,123 (259,887)
Prepaid expenses - - - 755,575 829,361 (73,786)
Inventory - - - 3,849,849 3,678,632 171,217
Inventory reserve - - - (1,475,823) (1,319,668) (156,155)
--------------------------------------- ----------------------------------------
Inventory, net - - - 2,374,026 2,358,964 15,062
--------------------------------------- ----------------------------------------
Other current assets 94,078 115,696 (21,618) 94,078 115,696 (21,618)
--------------------------------------- ----------------------------------------
TOTAL CURRENT ASSETS 3,501,069 3,882,275 (381,206) 28,789,999 30,243,081 (1,453,082)
--------------------------------------- ----------------------------------------
PROPERTY AND EQUIPMENT
Field equipment 187,180 187,180 0 2,595,633 2,592,740 2,893
Automotive equipment 118,074 118,074 0 1,677,023 1,677,023 0
Office furniture and equipment 23,796 23,796 - 2,220,745 2,222,523 (1,778)
Equipment under capital leases - -
Leasehold improvements 136,072 136,072 - 337,715 337,715 (0)
--------------------------------------- ----------------------------------------
TOTAL PROPERTY & EQUIP., AT COST 465,122 465,121 0 6,831,116 6,830,001 1,115
Accum. Depreciation (325,334) (321,523) (3,811) (4,089,450) (4,004,798) (84,652)
--------------------------------------- ----------------------------------------
TOTAL PROPERTY & EQUIP., NET 139,788 143,599 (3,811) 2,741,666 2,825,203 (83,537)
--------------------------------------- ----------------------------------------
Long-term accounts receivable - Other (Texas) - - - 1,031,768 992,049 39,719
Other Assets 20,815 20,815 (0) 667,756 665,381 2,375
Investment & Intercompany in Subsidiaries - - - 425,000 425,000 -
--------------------------------------- ----------------------------------------
TOTAL ASSETS 3,661,672 4,046,689 (385,017) 33,656,189 35,150,714 (1,494,525)
--------------------------------------- ----------------------------------------
--------------------------------------- ----------------------------------------
POST PETITION CURRENT LIABILITIES
Accounts payable 48,549 45,478 3,071 536,486 606,944 (70,458)
Line of Credit - - - 20,076,141 20,097,103 (20,962)
Accrued expenses, excluding bankruptcy costs 2,220 17,020 (14,802) 1,648,581 1,857,289 (208,708)
Accrued bankruptcy costs - - - 2,232,839 2,082,839 150,000
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 2,885,876 3,043,071 (157,195) 0 0 0
Intercompany payables 251,236 43,706 207,530 - - -
--------------------------------------- ----------------------------------------
TOTAL POST PETITION CURRENT LIABILITIES 3,187,881 3,149,275 38,605 27,054,650 27,204,766 (150,127)
Intercompany - BNYFC
Intercompany Notes Payable 2,535,455 2,535,455 (0) -
Pre petition Liabilities 10,673,183 10,788,167 (114,984) 16,571,017 16,772,564 (201,547)
Pre petition Estimated Construction Claims 2,904,000 2,904,000 - 2,904,000 2,904,000 -
--------------------------------------- ----------------------------------------
TOTAL LIABILITIES 19,300,518 19,376,896 (76,379) 46,529,667 46,881,341 (351,674)
--------------------------------------- ----------------------------------------
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) (112,005,444) (112,005,444)
Y-T-D net income pre petition (676,048) (676,048) (1,845,936) (1,845,936)
Y-T-D net income post petition (10,063,039) (9,754,402) (308,638) (23,061,257) (21,918,406) (1,142,851)
--------------------------------------- ----------------------------------------
TOTAL SHAREHOLDERS' EQUITY (15,638,846) (15,330,197) (308,638) (12,873,477) (11,730,615) (1,142,851)
--------------------------------------- ----------------------------------------
TOTAL LIABILITIES & SHAREHOLDERS' EQUITY 3,661,672 4,046,689 (385,017) 33,656,189 35,150,714 (1,494,525)
--------------------------------------- ----------------------------------------
--------------------------------------- ----------------------------------------
</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
JAN 31, 1998 DEC 31, 1997 JAN 31, 1998 DEC 31, 1997
ESD ESD CHANGE PSD PSD CHANGE
--------------------------------------- ---------------------------------------
<S> <C> <C> <C> <C> <C> <C>
Sales 1,234,139 1,246,710 (12,571) 761,231 851,461 (90,230)
Cost of Sales 814,305 772,188 42,117 697,734 812,375 (114,641)
--------------------------------------- ----------------------------------------
Gross Profit 419,834 474,522 (54,688) 63,497 39,086 24,411
Selling, General, and Administrative 383,461 381,103 2,358 232,383 309,619 (77,236)
--------------------------------------- ----------------------------------------
Income (Loss) From Operations 36,373 93,419 (57,046) (168,886) (270,533) 101,647
Other Income (Expense):
I/C Interest Income (Expense) (85,543) (86,233) 690 (75,117) (73,328) (1,789)
Interest Expense (1,671) (1,229) (442) - - -
Interest Income 126 108 18 - - -
Gain (loss) on Asset Disposition - 4,643 (4,643) - 400 (400)
Other Expense (100,175) (298,205) 198,030 (1,448) (4,058) 2,610
Other Income - - - - - -
--------------------------------------- ----------------------------------------
Total Other Income (Expense) (187,263) (380,916) 193,653 (76,565) (76,986) 421
Net Loss Before Bankruptcy
Administrative Expenses (150,890) (287,497) 136,607 (245,451) (347,519) 102,068
Bankruptcy Administrative Expenses -
--------------------------------------- ----------------------------------------
Net Loss (150,890) (287,497) 136,607 (245,451) (347,519) 102,068
--------------------------------------- ----------------------------------------
--------------------------------------- ----------------------------------------
</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 JAN 31, 1998 DEC 31, 1997
JAN 31, 1998 DEC 31, 1997 CONTINUING CONTINUING
CORPORATE CORPORATE CHANGE OPERATIONS OPERATIONS CHANGE
--------------------------------------- ---------------------------------------
<S> <C> <C> <C> <C> <C> <C>
Sales - - - 1,995,370 2,098,171 (102,801)
Cost of Sales - - - 1,512,039 1,584,563 (72,524)
--------------------------------------- ----------------------------------------
Gross Profit - - - 483,331 513,608 (30,277)
Selling, General, and Administrative 256,975 366,826 (109,851) 872,819 1,057,548 (184,729)
--------------------------------------- ----------------------------------------
Income (Loss) From Operations (256,975) (366,826) 109,851 (389,488) (543,940) 154,452
Other Income (Expense):
I/C Interest Income (Expense) 160,629 159,592 1,037 (31) 31 (62)
Interest Expense (181,391) (179,839) (1,552) (183,062) (181,068) (1,994)
Interest Income 1,716 1,487 229 1,842 1,595 247
Gain (loss) on Asset Disposition - - - - 5,043 (5,043)
Amortization / Write-off of Goodwill - - - - - -
Other Expense (10,813) - (10,813) (112,436) (302,263) 189,827
Other Income (1,038) 2,604 (3,642) (1,038) 2,604 (3,642)
--------------------------------------- ----------------------------------------
Total Other Income (Expense) (30,897) (16,156) (14,741) (294,725) (474,058) 179,333
Net Loss Before Bankruptcy
Administrative Expenses (287,872) (382,982) 95,110 (684,213) (1,017,998) 333,785
Bankruptcy Administrative Expenses (150,000) (150,000) - (150,000) (150,000) -
--------------------------------------- ----------------------------------------
Net Loss (437,872) (532,982) 95,110 (834,213) (1,167,998) 333,785
--------------------------------------- ----------------------------------------
--------------------------------------- ----------------------------------------
</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
JAN 31, 1998 DEC 31, 1997 JAN 31, 1998 DEC 31, 1997
DISCONTINUED DISCONTINUED COMBINED COMBINED
OPERATIONS OPERATIONS CHANGE FINAL FINAL CHANGE
--------------------------------------- ---------------------------------------
<S> <C> <C> <C> <C> <C> <C>
Sales - - - 1,998,167 2,051,847 (53,680)
Cost of Sales - - - 1,514,836 1,538,239 (23,403)
--------------------------------------- ----------------------------------------
Gross Profit - - - 483,331 513,608 (30,277)
Selling, General, and Administrative 1,904 77,068 (75,164) 874,723 1,134,616 (259,893)
--------------------------------------- ----------------------------------------
Income (Loss) from Operations (1,904) (77,068) 75,164 (391,392) (621,008) 229,616
Other Income (Expense):
I/C Interest Income (Expense) 155 7,246 (7,091) 124 7,277 (7,153)
Interest Expense - - - (183,062) (181,068) (1,994)
Interest Income - - - 1,842 1,595 247
Gain (loss) on Asset Disposition 9,609 - 9,609 9,609 5,043 4,566
Amortization / Write-off of Goodwill - - - - - -
Other Expense (316,498) (57,269) (259,229) (428,934) (359,532) (69,402)
Other Income - 8,627 (8,627) (1,038) 11,231 (12,269)
--------------------------------------- ----------------------------------------
Total Other Income (Expense) (306,734) (41,396) (265,338) (601,459) (515,454) (86,005)
Net Loss Before Bankruptcy
Administrative Expenses (308,638) (118,464) (190,174) (992,851) (1,136,462) 143,611
Bankruptcy Administrative Expenses - (150,000) (150,000) -
--------------------------------------- ----------------------------------------
Net Loss (308,638) (118,464) (190,174) (1,142,851) (1,286,462) 143,611
--------------------------------------- ----------------------------------------
--------------------------------------- ----------------------------------------
</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
JAN 31, 1998 DEC 31, 1997 CHANGE
------------- ------------- ----------
<S> <C> <C> <C>
Cash flows from operating activities:
Net loss ($1,142,851) ($1,286,462) $143,611
Adjustments to reconcile net loss to net cash
(used in) provided by operating activities:
Depreciation 85,232 87,939 (2,707)
Additional costs in excess of billings reserves 100,175 0 100,175
(Gain) Loss on sale of property and equipment (9,609) (5,043) (4,566)
Change in certain assets & liabilities:
(Increase) decrease in:
Receivables 661,969 669,784 (7,815)
Costs in excess of billings 159,712 952,896 (793,184)
Inventory (15,062) (17,115) 2,053
Prepaids & other assets 95,404 (149,766) 245,170
Increase (decrease) in:
Accounts payable (70,458) (200,019) 129,561
Accrued expenses (58,708) 180,748 (239,456)
Other net changes in assets and liabilities (42,220) (33,529) (8,691)
---------- --------- ----------
Total adjustments 906,436 1,485,895 (579,459)
---------- --------- ----------
Net cash provided by operating activities (236,415) 199,433 (435,848)
Cash flows from investing activities:
Proceeds from sale of equipment 10,433 14,286 (3,853)
Additions to property and equipment (2,519) (11,911) 9,392
---------- --------- ----------
Net cash provided by (used in) investing activities 7,914 2,375 5,539
Cash flows from financing and other activities:
Net proceeds (repayments) from revolver credit loan (20,962) 130,991 (151,953)
Increase (decrease) in pre petition liabilities (201,547) (85,406) (116,141)
---------- --------- ----------
Net cash provided by (used in) financing activities (222,509) 45,585 (268,094)
---------- --------- ----------
Net increase (decrease) in cash (451,010) 247,393 (698,403)
Cash at beginning of period 519,141 271,748 247,393
---------- --------- ----------
Cash at end of period $68,131 $519,141 ($451,010)
---------- --------- ----------
---------- --------- ----------
</TABLE>
See accompanying notes to financial statement information
<PAGE>
EXHIBIT 99.1
Omega Environmental, Inc.
Debtor in Possession Case # 97-06084
January 31, 1998 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 January 31, 1998, the Company's borrowings from BNY Financial
Corporation ("BNYFC") were $20,076,141. The debtor-in-possession financing
agreement expired December 31, 1997 and was extended through January 31,1998.
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.
