<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 March 31, 1998 and
February 28, 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
March 31, 1998 and February 28, 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)
MAR 31, 1998 FEB 28, 1998
ESD ESD CHANGE
------------------------------------------
<S> <C> <C> <C>
CURRENT ASSETS
Cash 36,546 61,449 (24,903)
Restricted cash held in escrow 2,615,260 2,615,152 108
Accounts receivable -- --
A/R--trade 11,849,505 11,744,735 104,770
A/R--interco 16,378 11,057 5,321
A/R--employees 3,799 5,996 (2,197)
A/R--supplemental 1,871,891 1,867,550 4,341
A/R--misc 208,740 18,214 190,526
Allowance for doubtful accounts (3,124,492) (2,508,835) (615,657)
------------------------------------------
Accounts receivable, net 10,825,822 11,138,717 (312,895)
------------------------------------------
Costs and earnings in excess of billings 5,842,726 5,997,717 (154,991)
Prepaid expenses -- 11,949 (11,949)
Inventory -- -- --
Inventory reserve -- -- --
------------------------------------------
Inventory, net -- -- --
------------------------------------------
Other current assets -- -- --
------------------------------------------
TOTAL CURRENT ASSETS 19,320,354 19,824,984 (504,630)
------------------------------------------
PROPERTY AND EQUIPMENT
Field equipment 2,229,615 2,090,125 139,490
Automotive equipment 1,038,692 939,324 99,368
Office furniture and equipment 826,844 798,850 27,994
Land, Building, and leasehold improvements 93,223 93,223 --
------------------------------------------
TOTAL PROPERTY & EQUIP., AT COST 4,188,374 3,921,522 266,852
Accum. Depreciation (2,672,484) (2,413,423) (259,061)
------------------------------------------
TOTAL PROPERTY & EQUIP., NET 1,515,891 1,508,099 7,792
Long-term accounts receivable - Other (Texas) 1,053,883 1,031,421 22,462
Reserve for Long-term accounts receivable (350,000) (350,000)
------------------------------------------
Long-term accounts receivable - Other (Texas), net 703,883 1,031,421 (327,538)
Other Assets 177,675 177,425 250
Investment & Intercompany in Subsidiaires -- -- --
------------------------------------------
TOTAL ASSETS 21,717,803 22,541,929 (824,126)
------------------------------------------
------------------------------------------
POST PETITION CURRENT LIABILITIES
Accounts payable 281,937 329,889 (47,952)
Line of Credit -- -- --
Accrued expenses, excluding bankruptcy costs 329,054 564,358 (235,304)
Accrued bankruptcy costs -- -- --
Estimated claims against cash held in escrow 2,560,602 2,560,602 --
Intercompany - BNYFC 8,423,607 8,393,348 30,259
Intercompany payables 60,540 1,783 58,757
------------------------------------------
TOTAL POST PETITION CURRENT LIABILITIES 11,655,740 11,849,980 (194,240)
Intercompany Notes Payable 8,741,768 8,741,768
Pre Petition Liabilities 2,239,330 2,342,693 (103,363)
Pre Petition Estimated Construction Claims -- -- --
------------------------------------------
TOTAL LIABILITIES 22,636,838 22,934,442 (297,603)
------------------------------------------
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 (3,120,624) (2,594,101) (526,523)
------------------------------------------
TOTAL SHAREHOLDERS' EQUITY (919,035) (392,513) (526,523)
------------------------------------------
TOTAL LIABILITIES & SHAREHOLDERS' EQUITY 21,717,803 22,541,929 (824,126)
------------------------------------------
------------------------------------------
<CAPTION>
(UNAUDITED) (UNAUDITED)
MAR 31, 1998 FEB 28, 1998
PSD PSD CHANGE
---------------------------------------------
<S> <C> <C> <C>
CURRENT ASSETS
Cash 37,577 41,994 (4,417)
Restricted cash held in escrow -- -- --
Accounts receivable -- --
A/R--trade 1,911,877 2,125,704 (213,827)
A/R--interco -- 3,147 (3,147)
A/R--employees 17,900 19,397 (1,497)
A/R--supplemental --
A/R--misc -- -- --
Allowance for doubtful accounts (98,115) (126,921) 28,806
---------------------------------------------
Accounts receivable, net 1,831,662 2,021,327 (189,665)
---------------------------------------------
Costs and earnings in excess of billings -- -- --
Prepaid expenses 74,062 114,466 (40,404)
Inventory 3,991,878 4,079,356 (87,478)
Inventory reserve (1,647,478) (1,713,671) 66,193
---------------------------------------------
Inventory, net 2,344,400 2,365,685 (21,285)
---------------------------------------------
Other current assets -- -- --
---------------------------------------------
TOTAL CURRENT ASSETS 4,287,701 4,543,472 (255,771)
---------------------------------------------
PROPERTY AND EQUIPMENT
Field equipment 323,298 323,298 --
Automotive equipment 619,625 619,625 --
Office furniture and equipment 1,107,708 1,106,027 1,681
Land, Building, and leasehold improvements 89,040 89,040 --
---------------------------------------------
TOTAL PROPERTY & EQUIP., AT COST 2,139,671 2,137,990 1,681
Accum. Depreciation (1,173,561) (1,151,620) (21,941)
---------------------------------------------
TOTAL PROPERTY & EQUIP., NET 966,110 986,370 (20,260)
---------------------------------------------
Long-term accounts receivable - Other (Texas) -- -- --
Reserve for Long-term accounts receivable
---------------------------------------------
Long-term accounts receivable - Other (Texas), net -- -- --
Other Assets -- -- --
Investment & Intercompany in Subsidiaires -- -- --
---------------------------------------------
TOTAL ASSETS 5,253,811 5,529,842 (276,031)
---------------------------------------------
---------------------------------------------
POST PETITION CURRENT LIABILITIES
Accounts payable 105,616 165,005 (59,389)
Line of Credit -- -- --
Accrued expenses, excluding bankruptcy costs 491,873 388,623 103,250
Accrued bankruptcy costs -- -- --
Estimated claims against cash held in escrow -- -- --
Intercompany - BNYFC 8,216,587 8,245,943 (29,356)
Intercompany payables -- 2,774 (2,774)
---------------------------------------------
TOTAL POST PETITION CURRENT LIABILITIES 8,814,076 8,802,345 11,731
Intercompany Notes Payable -- -- --
Pre Petition Liabilities 1,054,153 1,127,055 (72,902)
Pre Petition Estimated Construction Claims -- -- --
---------------------------------------------
TOTAL LIABILITIES 9,868,229 9,929,400 (61,171)
---------------------------------------------
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 (3,712,663) (3,497,803) (214,860)
---------------------------------------------
TOTAL SHAREHOLDERS' EQUITY (4,614,418) (4,399,558) (214,860)
---------------------------------------------
TOTAL LIABILITIES & SHAREHOLDERS' EQUITY 5,253,811 5,529,842 (276,031)
---------------------------------------------
---------------------------------------------
</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)
MAR 31, 1998 FEB 28, 1998
CORPORATE CORPORATE CHANGE
---------------------------------------------
<S> <C> <C> <C>
CURRENT ASSETS
Cash 436,353 282,512 153,841
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 1,078,506 1,076,470 2,036
Allowance for doubtful accounts (1,138,467) (1,138,467) --
---------------------------------------------
Accounts receivable, net 84,470 82,434 2,036
---------------------------------------------
Costs and earnings in excess of billings -- -- --
Prepaid expenses 421,144 363,827 57,317
Inventory -- -- --
Inventory reserve -- -- --
---------------------------------------------
Inventory, net -- -- --
---------------------------------------------
Other current assets -- -- --
---------------------------------------------
TOTAL CURRENT ASSETS 941,967 728,773 213,194
---------------------------------------------
PROPERTY AND EQUIPMENT
Field equipment -- -- --
Automotive equipment -- -- --
Office furniture and equipment 310,472 311,292 (820)
Land, Building, and leasehold improvements 21,780 21,780 --
---------------------------------------------
TOTAL PROPERTY & EQUIP., AT COST 332,252 333,072 (820)
Accum. Depreciation (277,976) (276,565) (1,411)
---------------------------------------------
TOTAL PROPERTY & EQUIP., NET 54,276 56,507 (2,231)
---------------------------------------------
Long-term accounts receivable - Other (Texas) -- -- --
Reserve for Long-term accounts receivable --
---------------------------------------------
Long-term accounts receivable - Other (Texas), net -- -- --
Other Assets 360,775 359,717 1,058
Investment & Intercompany in Subsidiaires 74,785,282 74,785,282 --
---------------------------------------------
TOTAL ASSETS 76,142,300 75,930,279 212,021
---------------------------------------------
---------------------------------------------
POST PETITION CURRENT LIABILITIES
Accounts payable 37,118 74,638 (37,520)
Line of Credit 20,604,353 20,196,803 407,550
Accrued expenses, excluding bankruptcy costs 516,301 481,862 34,439
Accrued bankruptcy costs 2,658,129 2,508,129 150,000
Estimated claims against cash held in escrow -- -- --
Intercompany - BNYFC (19,504,039) (19,578,681) 74,642
Intercompany payables -- -- --
---------------------------------------------
TOTAL POST PETITION CURRENT LIABILITIES 4,311,862 3,682,751 629,111
Intercompany Notes Payable -- -- --
Pre Petition Liabilities 2,534,371 2,534,371 --
Pre Petition Estimated Construction Claims -- -- --
---------------------------------------------
TOTAL LIABILITIES 6,846,233 6,217,122 629,111
---------------------------------------------
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 (8,250,745) (7,833,655) (417,090)
---------------------------------------------
TOTAL SHAREHOLDERS' EQUITY 69,296,067 69,713,157 (417,090)
---------------------------------------------
TOTAL LIABILITIES & SHAREHOLDERS' EQUITY 76,142,300 75,930,279 212,021
---------------------------------------------
---------------------------------------------
<CAPTION>
(UNAUDITED) (UNAUDITED)
MAR 31, 1998 FEB 28, 1998
CONTINUING CONTINUING
OPERATIONS OPERATIONS CHANGE
-----------------------------------------------
<S> <C> <C> <C>
CURRENT ASSETS
Cash 510,476 385,955 124,521
Restricted cash held in escrow 2,615,260 2,615,152 108
Accounts receivable
A/R--trade 13,905,813 14,014,870 (109,057)
A/R--interco 16,378 14,204 2,174
A/R--employees 21,699 25,393 (3,694)
A/R--supplemental 1,871,891 1,867,560 4,341
A/R--misc 1,287,246 1,094,684 192,562
Allowance for doubtful accounts (4,361,074) (3,774,223) (586,851)
-----------------------------------------------
Accounts receivable, net 12,741,954 13,242,478 (500,524)
-----------------------------------------------
Costs and earnings in excess of billings 5,842,726 5,997,717 (154,991)
Prepaid expenses 495,206 490,242 4,964
Inventory 3,991,878 4,079,356 (87,478)
Inventory reserve (1,647,478) (1,713,671) 66,193
-----------------------------------------------
Inventory, net 2,344,400 2,365,685 (21,285)
-----------------------------------------------
Other current assets -- -- --
-----------------------------------------------
TOTAL CURRENT ASSETS 24,550,022 25,097,229 (547,207)
-----------------------------------------------
PROPERTY AND EQUIPMENT
Field equipment 2,552,913 2,413,423 139,490
Automotive equipment 1,658,317 1,558,949 99,368
Office furniture and equipment 2,245,024 2,216,169 28,855
Land, Building, and leasehold improvements 204,043 204,043 --
-----------------------------------------------
TOTAL PROPERTY & EQUIP., AT COST 6,660,297 6,392,584 267,713
Accum. Depreciation (4,124,021) (3,841,608) (282,413)
-----------------------------------------------
TOTAL PROPERTY & EQUIP., NET 2,536,277 2,550,976 (14,699)
-----------------------------------------------
Long-term accounts receivable - Other (Texas) 1,053,883 1,031,421 22,462
Reserve for Long-term accounts receivable (350,000) (350,000)
-----------------------------------------------
Long-term accounts receivable - Other (Texas), net 703,883 1,031,421 (327,538)
Other Assets 538,450 537,142 1,308
Investment & Intercompany in Subsidiaires 74,785,282 74,785,282 --
-----------------------------------------------
TOTAL ASSETS 103,113,914 104,002,050 (888,136)
-----------------------------------------------
-----------------------------------------------
POST PETITION CURRENT LIABILITIES
Accounts payable 424,671 569,532 (144,861)
Line of Credit 20,604,353 20,196,803 407,550
Accrued expenses, excluding bankruptcy costs 1,337,228 1,744,338 (407,110)
Accrued bankruptcy costs 2,658,129 2,385,839 272,290
Estimated claims against cash held in escrow 2,560,602 2,560,602 --
Intercompany - BNYFC (2,863,845) (2,939,390) 75,545
Intercompany payables 60,540 4,557 55,983
-----------------------------------------------
TOTAL POST PETITION CURRENT LIABILITIES 24,781,678 24,522,281 259,397
Intercompany Notes Payable 8,741,768 8,741,768
Pre Petition Liabilities 5,827,854 5,816,914 10,940
Pre Petition Estimated Construction Claims -- -- --
-----------------------------------------------
TOTAL LIABILITIES 39,351,300 39,080,964 270,337
-----------------------------------------------
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 (15,084,032) (13,925,559) (1,158,473)
-----------------------------------------------
TOTAL SHAREHOLDERS' EQUITY 63,762,614 64,921,086 (1,158,473)
-----------------------------------------------
TOTAL LIABILITIES & SHAREHOLDERS' EQUITY 103,113,914 104,002,050 (888,136)
-----------------------------------------------
-----------------------------------------------
</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)
MAR 31, 1998 FEB 28, 1998
DISCONTINUED DISCONTINUED
OPERATIONS OPERATIONS CHANGE
--------------------------------------------
<S> <C> <C> <C>
CURRENT ASSETS
Cash -- -- --
Restricted cash held in escrow -- -- --
Accounts receivable
A/R--trade 5,522,449 6,190,228 (667,779)
A/R--interco 60,540 3,043 57,497
A/R--employees -- -- --
A/R--supplemental --
A/R--misc 57,641 143,449 (85,808)
Allowance for doubtful accounts (2,878,073) (3,202,774) 324,701
--------------------------------------------
Accounts receivable, net 2,762,557 3,133,945 (371,389)
--------------------------------------------
Costs and earnings in excess of billings -- -- --
Prepaid expenses -- -- --
Inventory -- -- --
Inventory reserve -- -- --
--------------------------------------------
Inventory, net -- -- --
--------------------------------------------
Other current assets 83,773 83,773 --
--------------------------------------------
TOTAL CURRENT ASSETS 2,846,330 3,217,719 (371,389)
--------------------------------------------
PROPERTY AND EQUIPMENT
Field equipment 4,831 117,978 (113,147)
Automotive equipment 16,657 118,074 (101,417)
Office furniture and equipment 3,518 23,796 (20,278)
Land, Building, and leasehold improvements 130,767 130,767 --
--------------------------------------------
TOTAL PROPERTY & EQUIP., AT COST 155,773 390,615 (234,841)
Accum. Depreciation (78,397) (274,524) 196,126
--------------------------------------------
TOTAL PROPERTY & EQUIP., NET 77,376 116,091 (38,715)
--------------------------------------------
Long-term accounts receivable - Other (Texas) -- -- --
Reserve for Long-term accounts receivable
--------------------------------------------
Long-term accounts receivable - Other (Texas), net -- -- --
Other Assets 20,815 20,815 --
Investment & Intercompany in Subsidiaires -- -- --
--------------------------------------------
TOTAL ASSETS 2,944,521 3,354,625 (410,104)
--------------------------------------------
--------------------------------------------
POST PETITION CURRENT LIABILITIES
Accounts payable 6,951 30,803 (23,852)
Line of Credit -- -- --
Accrued expenses, excluding bankruptcy costs 20,405 21,396 (992)
Accrued bankruptcy costs
Estimated claims against cash held in escrow
Intercompany - BNYFC 2,863,843 2,939,390 (75,547)
Intercompany payables 16,378 12,689 3,690
--------------------------------------------
TOTAL POST PETITION CURRENT LIABILITIES 2,907,577 3,004,278 (96,701)
Intercompany Notes Payable 2,535,455 2,535,455
Pre Petition Liabilities 10,289,703 10,662,721 (373,018)
Pre Petition Estimated Construction Claims 2,904,000 2,904,000 --
--------------------------------------------
TOTAL LIABILITIES 18,636,735 19,106,454 (469,719)
--------------------------------------------
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 (32,353,339) (32,353,339)
Y-T-D net income pre petition (676,048) (676,048)
Y-T-D net income post petition (10,116,405) (10,176,020) 59,615
--------------------------------------------
TOTAL SHAREHOLDERS' EQUITY (15,692,214) (15,751,829) 59,615
--------------------------------------------
TOTAL LIABILITIES & SHAREHOLDERS' EQUITY 2,944,521 3,354,625 (410,104)
--------------------------------------------
--------------------------------------------
<CAPTION>
(UNAUDITED) (UNAUDITED)
MAR 31, 1998 FEB 28, 1998
COMBINED COMBINED
FINAL FINAL CHANGE
------------------------------------------------
<S> <C> <C> <C>
CURRENT ASSETS
Cash 510,476 385,955 124,521
Restricted cash held in escrow 2,615,260 2,615,152 108
Accounts receivable
A/R--trade 19,428,262 20,205,098 (776,835)
A/R--interco -- -- --
A/R--employees 21,699 25,393 (3,694)
A/R--supplemental 1,871,891 1,867,550 4,341
A/R--misc 1,344,887 1,238,133 106,754
Allowance for doubtful accounts (7,239,147) (6,976,997) (262,150)
------------------------------------------------
Accounts receivable, net 15,427,593 16,359,177 (931,584)
------------------------------------------------
Costs and earnings in excess of billings 5,842,726 5,997,717 (154,991)
Prepaid expenses 495,206 490,242 4,964
Inventory 3,991,878 4,079,356 (87,478)
Inventory reserve (1,647,478) (1,713,671) 66,193
------------------------------------------------
Inventory, net 2,344,400 2,365,685 (21,285)
------------------------------------------------
Other current assets 83,773 83,773 --
------------------------------------------------
TOTAL CURRENT ASSETS 27,319,434 28,297,701 (978,267)
------------------------------------------------
PROPERTY AND EQUIPMENT
Field equipment 2,557,745 2,531,401 26,343
Automotive equipment 1,674,974 1,677,023 (2,048)
Office furniture and equipment 2,248,542 2,239,965 8,577
Land, Building, and leasehold improvements 334,810 334,810 --
------------------------------------------------
TOTAL PROPERTY & EQUIP., AT COST 6,816,071 6,783,199 32,872
Accum. Depreciation (4,202,418) (4,116,132) (86,286)
------------------------------------------------
TOTAL PROPERTY & EQUIP., NET 2,613,653 2,667,067 (53,414)
------------------------------------------------
Long-term accounts receivable - Other (Texas) 1,053,883 1,031,421 22,462
Reserve for Long-term accounts receivable (350,000) (350,000)
------------------------------------------------
Long-term accounts receivable - Other (Texas), net 703,883 1,031,421 (327,538)
Other Assets 559,265 557,958 1,307
Investment & Intercompany in Subsidiaires 425,000 425,000 --
------------------------------------------------
TOTAL ASSETS 31,621,235 32,979,147 (1,357,912)
------------------------------------------------
------------------------------------------------
POST PETITION CURRENT LIABILITIES
Accounts payable 431,621 600,335 (168,714)
Line of Credit 20,604,353 20,196,803 407,550
Accrued expenses, excluding bankruptcy costs 1,357,633 1,643,444 (285,811)
Accrued bankruptcy costs 2,658,129 2,508,129 150,000
Estimated claims against cash held in escrow 2,560,602 2,560,602 --
Intercompany - BNYFC 0 -- 0
Intercompany payables -- -- --
------------------------------------------------
TOTAL POST PETITION CURRENT LIABILITIES 27,612,338 27,509,313 103,025
Intercompany Notes Payable
Pre Petition Liabilities 16,117,557 16,479,635 (362,078)
Pre Petition Estimated Construction Claims 2,904,000 2,904,000 --
------------------------------------------------
TOTAL LIABILITIES 46,633,895 46,892,949 (259,053)
------------------------------------------------
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 (112,005,444) (112,005,444)
Y-T-D net income pre petition (1,845,936) (1,845,936)
Y-T-D net income post petition (25,200,437) (24,101,579) (1,098,858)
------------------------------------------------
TOTAL SHAREHOLDERS' EQUITY (15,012,660) (13,913,802) (1,098,858)
------------------------------------------------
TOTAL LIABILITIES & SHAREHOLDERS' EQUITY 31,621,235 32,979,147 (1,357,912)
------------------------------------------------
------------------------------------------------
</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
MAR 31, 1998 FEB 28, 1998 MAR 31, 1998 FEB 28, 1998
ESD ESD CHANGE PSD PSD CHANGE
----------------------------------------- --------------------------------------
<S> <C> <C> <C> <C> <C> <C>
Sales 1,246,883 1,188,730 58,153 676,273 652,211 24,062
Cost of Sales 818,924 809,442 9,482 593,251 667,932 (74,681)
----------------------------------------- --------------------------------------
Gross Profit 427,959 379,288 48,671 83,022 (15,721) 98,743
Selling, General, and Administrative 393,836 373,755 20,080 252,313 244,381 7,932
----------------------------------------- --------------------------------------
Income (Loss) From Operations 34,123 5,533 28,591 (169,291) (260,102) 90,811
Other Income(Expense):
I/C Interest Income (Expense) (73,603) (74,601) 998 (71,550) (71,024) (526)
Interest Expense (1,163) (1,119) (44) -- -- --
Interest Income 108 117 (9) -- -- --
Gain (loss) on Asset Disposition 709 (1,824) 2,533 -- -- --
Other Expense (499,000) (62,851) (436,149) 25,981 (36,565) 62,546
Other Income 12,303 -- 12,303 -- -- --
----------------------------------------- --------------------------------------
Total Other (Expense) (560,646) (140,278) (420,368) (45,569) (107,589) 62,020
Net Loss Before Bankruptcy
Administrative Expenses (526,523) (134,745) (391,777) (214,860) (367,691) 152,831
Bankruptcy Administrative Expenses --
----------------------------------------- --------------------------------------
Net Loss (526,523) (134,745) (391,777) (214,860) (367,691) 152,831
----------------------------------------- --------------------------------------
----------------------------------------- --------------------------------------
</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 MAR 31, 1998 FEB 28, 1998
MAR 31, 1998 FEB 28, 1998 CONTINUING CONTINUING
CORPORATE CORPORATE CHANGE OPERATIONS OPERATIONS CHANGE
-------------------------------------- --------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
Sales -- -- -- 1,923,156 1,840,941 82,215
Cost of Sales -- -- -- 1,412,175 1,477,374 (65,199)
------------------------------------- ------------------------------------------
Gross Profit -- -- -- 510,981 363,567 147,414
Selling, General, and Administrative 224,632 244,153 (19,521) 870,781 862,289 8,491
------------------------------------- ------------------------------------------
Income (Loss) From Operations (224,632) (244,153) 19,521 (359,800) (498,722) 138,923
Other Income(Expense):
I/C Interest Income (Expense) 145,153 145,625 (472) -- -- --
Interest Expense (184,363) (166,397) (17,966) (185,526) (167,516) (18,010)
Interest Income 1,058 -- 1,058 1,166 117 1,049
Gain (loss) on Asset Disposition -- -- -- 709 (1,824) 2,533
Other Expense (5,306) (6,980) 1,674 (478,325) (106,396) (371,929)
Other Income 1,000 -- 1,000 13,303 -- 13,303
------------------------------------- ------------------------------------------
Total Other (Expense) (42,458) (27,752) (14,706) (648,673) (275,619) (373,054)
Net Loss Before Bankruptcy
Administrative Expenses (267,090) (271,905) 4,815 (1,008,473) (774,341) (234,131)
Bankruptcy Administrative Expenses (150,000) (153,000) 3,000 (150,000) (153,000) 3,000
------------------------------------- ------------------------------------------
Net Loss (417,090) (424,905) 7,815 (1,158,473) (927,341) (231,131)
------------------------------------- ------------------------------------------
------------------------------------- ------------------------------------------
</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
MAR 31, 1998 FEB 28, 1998 MAR 31, 1998 FEB 28, 1998
DISCONTINUED DISCONTINUED COMBINED COMBINED
OPERATIONS OPERATIONS CHANGE FINAL FINAL CHANGE
---------------------------------------- --------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
Sales -- -- -- 1,846,238 1,843,738 2,500
Cost of Sales -- -- -- 1,335,257 1,480,171 (144,914)
------------------------------------- ------------------------------------------
Gross Profit -- -- -- 510,981 363,567 147,414
Selling, General, and Administrative 0 363 (363) 870,781 862,652 8,129
------------------------------------- ------------------------------------------
Income (Loss) From Operations (0) (363) 363 (359,800) (499,085) 139,285
Other Income(Expense):
I/C Interest Income (Expense) -- -- -- -- -- --
Interest Expense -- -- -- (185,526) (167,516) (18,010)
Interest Income -- 12 (12) 1,166 129 1,037
Gain (loss) on Asset Disposition -- 12,082 (12,082) 709 10,258 (9,549)
Other Expense -- (132,485) 132,485 (478,325) (238,881) (239,444)
Other Income 59,615 7,773 51,842 72,918 7,773 65,145
------------------------------------- ------------------------------------------
Total Other (Expense) 59,615 (112,618) 172,233 (589,058) (388,237) (200,821)
Net Loss Before Bankruptcy
Administrative Expenses 59,615 (112,981) 172,596 (948,858) (887,322) (61,536)
Bankruptcy Administrative Expenses -- (150,000) (153,000) 3,000
------------------------------------- ------------------------------------------
Net Loss 59,615 (112,981) 172,596 (1,098,858) (1,040,322) (58,536)
------------------------------------- ------------------------------------------
------------------------------------- ------------------------------------------
</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
MAR 31, 1998 FEB 28, 1998 CHANGE
------------ ------------ ---------
<S> <C> <C> <C>
Cash flows from operating activities:
Net loss ($1,098,858) ($1,040,322) ($58,536)
Adjustments to reconcile net loss to net cash
(used in) provided by operating activities:
Depreciation 86,286 84,896 1,390
Reserve for Long-term accounts receivable 350,000 350,000
Additional costs in excess of billings reserves 0 62,851 (62,851)
(Gain) Loss on sale of property and equipment (709) (10,258) 9,549
Change in certain assets & liabilities:
(Increase) decrease in:
Receivables 931,584 722,741 208,843
Costs in excess of billings 154,991 (259,332) 414,323
Inventory 21,285 8,341 12,944
Prepaids & other assets (4,964) 275,638 (280,602)
Increase (decrease) in:
Accounts payable (168,713) 63,849 (232,562)
Accrued expenses (135,811) 17,845 (153,656)
Other net changes in assets and liabilities (23,878) 110,030 (133,908)
----------- ----------- ---------
Total adjustments 1,210,070 1,076,600 (216,530)
----------- ----------- ---------
Net cash provided by operating activities 111,212 36,278 (275,066)
Cash flows from investing activities:
Proceeds from sale of equipment 1,000 3,675 (2,675)
Additions to property and equipment (33,163) (3,714) (29,449)
----------- ----------- ---------
Net cash provided by (used in) investing activities (32,163) (39) (32,124)
Cash flows from financing and other activities:
Net proceeds (repayments) from revolver credit loan 407,550 120,662 286,888
Increase (decrease) in pre petition liabilities (362,078) 160,922 (523,000)
----------- ----------- ---------
Net cash provided by (used in) financing activities 45,472 281,584 (236,112)
----------- ----------- ---------
Net increase in cash 124,521 317,824 (543,302)
CASH AT BEGINNING OF PERIOD 385,955 68,131 317,824
----------- ----------- ---------
CASH AT END OF PERIOD $510,476 $385,955 ($225,478)
----------- ----------- ---------
----------- ----------- ---------
</TABLE>
See accompanying notes to financial statement information.
<PAGE>
EXHIBIT 99.1
Omega Environmental, Inc.
Debtor in Possession Case # 97-06084
March 31, 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 March 31, 1998, the Company's borrowings from BNY Financial Corporation
("BNYFC") were $20,604,353. 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.
