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Previous: INVESCO EMERGING OPPORTUNITY FUNDS INC, NSAR-B, 1998-07-28 |
Next: OMEGA ENVIRONMENTAL INC, 8-K, 1998-07-28 |
<PAGE>
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of The Securities Exchange Act of 1934
Date of Report (Date of earliest event reported) July 16, 1998
OMEGA ENVIRONMENTAL, INC.
(EXACT NAME OF REGISTRANT AS SPECIFIED IN ITS CHARTER)
Commission File Number 0-20267
DELAWARE 91-1499751
(STATE OR OTHER JURISDICTION OF (I.R.S.
INCORPORATION OR ORGANIZATION) 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 July 16, 1998, the Registrant filed unaudited financial
statement information as of and for each of the months ended May
31, 1998 and April 30, 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 May 31, 1998 and April 30,
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)
May 31, 1998 Apr 30, 1998
ESD ESD Change
---------------------------------------------------------
<S> <C> <C> <C>
CURRENT ASSETS
Cash 25,102 45,689 (20,587)
Restricted cash held in escrow 2,615,491 2,615,381 110
Accounts receivable
A/R--trade 11,618,772 11,724,953 (106,181)
A/R--interco 4,719 1,086 3,633
A/R--employees 8,517 8,682 (165)
A/R--supplemental 1,881,922 1,883,112 (1,190)
A/R--misc. 10,078 191,587 (181,509)
Allowance for doubtful accounts (3,059,815) (3,056,888) (2,927)
---------------------------------------------------------
Accounts receivable, net 10,464,193 10,752,532 (288,339)
---------------------------------------------------------
Costs and earnings in excess of billings 5,254,860 5,696,773 (441,913)
Prepaid expenses 1,757 - 1,757
Inventory -
Inventory reserve -
---------------------------------------------------------
Inventory, net - - -
---------------------------------------------------------
Other current assets -
---------------------------------------------------------
TOTAL CURRENT ASSETS 18,361,403 19,110,375 (748,972)
---------------------------------------------------------
PROPERTY AND EQUIPMENT
Field equipment 2,230,731 2,232,329 (1,598)
Automotive equipment 1,031,192 1,031,192 -
Office furniture and equipment 831,634 833,149 (1,515)
Leasehold improvements 93,223 93,223 -
---------------------------------------------------------
TOTAL PROPERTY & EQUIP., AT COST 4,186,780 4,189,893 (3,113)
Accum. Depreciation (2,780,813) (2,726,791) (54,022)
---------------------------------------------------------
TOTAL PROPERTY & EQUIP., NET 1,405,967 1,463,102 (57,135)
---------------------------------------------------------
Long-term accounts receivable - Other (Texas) 1,053,883 1,053,883 -
Reserve for Long-term accounts receivable (350,000) (350,000) -
---------------------------------------------------------
Long-term accounts receviable - Other (Texas), net 703,883 703,883 -
Other Assets 177,975 177,975 -
Investment & Intercompany in Subsidiaires -
---------------------------------------------------------
TOTAL ASSETS 20,649,228 21,455,335 (806,107)
---------------------------------------------------------
---------------------------------------------------------
POST PETITION CURRENT LIABILITIES
Accounts payable 202,999 316,208 (113,209)
Line of Credit
Accrued expenses, excluding bankruptcy costs 400,066 368,747 31,319
Accrued bankruptcy costs
Estimated claims against cash held in escrow 2,560,602 2,560,602 -
Intercompany - BNYFC 7,983,004 8,219,509 (236,505)
Intercompany payables 433 1,590 (1,157)
---------------------------------------------------------
TOTAL POST PETITION CURRENT LIABILITIES 11,147,104 11,466,656 (319,552)
Intercompany Notes Payable 8,741,768 8,741,768 -
Pre Petition Liabilities 2,192,548 2,226,778 (34,230)
Pre Petition Estimated Construction Claims
---------------------------------------------------------
TOTAL LIABILITIES 22,081,420 22,435,202 (353,782)
---------------------------------------------------------
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 (3,633,780) (3,181,455) (452,325)
---------------------------------------------------------
TOTAL SHAREHOLDERS' EQUITY (1,432,192) (979,867) (452,325)
---------------------------------------------------------
TOTAL LIABILITIES & SHAREHOLDERS' EQUITY 20,649,228 21,455,335 (806,107)
---------------------------------------------------------
---------------------------------------------------------
<CAPTION>
(unaudited) (unaudited)
May 31, 1998 Apr 30, 1998
PSD PSD Change
-----------------------------------------------------
<S> <C> <C> <C>
CURRENT ASSETS
Cash 70,858 51,288 19,570
Restricted cash held in escrow -
Accounts receivable
A/R--trade 1,634,696 1,712,612 (77,916)
A/R--interco 433 1,590 (1,157)
A/R--employees 13,183 17,085 (3,902)
A/R--supplemental -
A/R--misc. - - -
Allowance for doubtful accounts (71,974) (67,475) (4,499)
---------------------------------------------------------
Accounts receivable, net 1,576,338 1,663,812 (87,474)
---------------------------------------------------------
Costs and earnings in excess of billings -
Prepaid expenses 69,262 71,049 (1,787)
Inventory 3,807,915 3,884,440 (76,525)
Inventory reserve (1,573,649) (1,569,720) (3,929)
---------------------------------------------------------
Inventory, net 2,234,266 2,314,720 (80,454)
---------------------------------------------------------
Other current assets -
---------------------------------------------------------
TOTAL CURRENT ASSETS 3,950,724 4,100,869 (150,145)
---------------------------------------------------------
PROPERTY AND EQUIPMENT
Field equipment 458,990 323,298 135,692
Automotive equipment 755,795 619,625 136,170
Office furniture and equipment 759,734 1,111,020 (351,286)
Leasehold improvements 94,106 89,040 5,066
---------------------------------------------------------
TOTAL PROPERTY & EQUIP., AT COST 2,068,625 2,142,983 (74,358)
Accum. Depreciation (1,290,130) (1,195,831) (94,299)
---------------------------------------------------------
TOTAL PROPERTY & EQUIP., NET 778,495 947,152 (168,657)
---------------------------------------------------------
Long-term accounts receivable - Other (Texas) - - -
Reserve for Long-term accounts receivable -
---------------------------------------------------------
Long-term accounts receviable - Other (Texas), net - - -
Other Assets - - -
Investment & Intercompany in Subsidiaires - - -
---------------------------------------------------------
TOTAL ASSETS 4,729,219 5,048,021 (318,802)
---------------------------------------------------------
---------------------------------------------------------
POST PETITION CURRENT LIABILITIES
Accounts payable 59,429 100,018 (40,589)
Line of Credit -
Accrued expenses, excluding bankruptcy costs 428,443 505,614 (77,171)
Accrued bankruptcy costs -
Estimated claims against cash held in escrow -
Intercompany - BNYFC 8,386,196 8,317,154 69,042
Intercompany payables 4,719 1,086 3,633
---------------------------------------------------------
TOTAL POST PETITION CURRENT LIABILITIES 8,878,787 8,923,872 (45,085)
Intercompany Notes Payable -
Pre Petition Liabilities 1,041,017 1,046,103 (5,086)
Pre Petition Estimated Construction Claims -
---------------------------------------------------------
TOTAL LIABILITIES 9,919,804 9,969,975 (50,171)
---------------------------------------------------------
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 (4,288,830) (4,020,199) (268,631)
---------------------------------------------------------
TOTAL SHAREHOLDERS' EQUITY (5,190,585) (4,921,954) (268,631)
---------------------------------------------------------
TOTAL LIABILITIES & SHAREHOLDERS' EQUITY 4,729,219 5,048,021 (318,802)
---------------------------------------------------------
---------------------------------------------------------
</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)
May 31, 1998 Apr 30, 1998
Corporate Corporate Change
----------------------------------------------------------
<S> <C> <C> <C>
CURRENT ASSETS
Cash 566,783 687,161 (120,378)
Restricted cash held in escrow -
Accounts receivable
A/R--trade 144,431 144,431 -
A/R--interco -
A/R--employees -
A/R--supplemental -
A/R--misc. 1,076,094 1,076,094 -
Allowance for doubtful accounts (1,138,467) (1,138,467) -
----------------------------------------------------------
Accounts receivable, net 82,058 82,058 -
----------------------------------------------------------
Costs and earnings in excess of billings -
Prepaid expenses 479,480 449,540 29,940
Inventory -
Inventory reserve -
----------------------------------------------------------
Inventory, net - - -
----------------------------------------------------------
Other current assets -
----------------------------------------------------------
TOTAL CURRENT ASSETS 1,128,321 1,218,759 (90,438)
----------------------------------------------------------
PROPERTY AND EQUIPMENT
Field equipment -
Automotive equipment -
Office furniture and equipment 310,472 310,472 -
Leasehold improvements 21,780 21,780 -
----------------------------------------------------------
TOTAL PROPERTY & EQUIP., AT COST 332,252 332,252 -
Accum. Depreciation (282,439) (280,208) (2,231)
----------------------------------------------------------
TOTAL PROPERTY & EQUIP., NET 49,813 52,044 (2,231)
----------------------------------------------------------
Long-term accounts receivable - Other (Texas) - - -
Reserve for Long-term accounts receivable -
----------------------------------------------------------
Long-term accounts receviable - Other (Texas), net - - -
Other Assets 129,907 129,907 -
Investment & Intercompany in Subsidiaires 74,785,282 74,785,282 -
----------------------------------------------------------
TOTAL ASSETS 76,093,323 76,185,992 (92,669)
----------------------------------------------------------
----------------------------------------------------------
POST PETITION CURRENT LIABILITIES
Accounts payable 8,544 26,516 (17,972)
Line of Credit 20,521,323 20,799,697 (278,374)
Accrued expenses, excluding bankruptcy costs 465,177 454,202 10,975
Accrued bankruptcy costs 2,968,800 2,813,589 155,211
Estimated claims against cash held in escrow -
Intercompany - BNYFC (18,969,927) (19,353,124) 383,197
Intercompany payables -
----------------------------------------------------------
TOTAL POST PETITION CURRENT LIABILITIES 4,993,917 4,740,880 253,037
Intercompany Notes Payable -
Pre Petition Liabilities 2,533,443 2,534,195 (752)
Pre Petition Estimated Construction Claims -
----------------------------------------------------------
TOTAL LIABILITIES 7,527,360 7,275,075 252,285
----------------------------------------------------------
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 (8,980,849) (8,635,895) (344,954)
----------------------------------------------------------
TOTAL SHAREHOLDERS' EQUITY 68,565,963 68,910,917 (344,954)
----------------------------------------------------------
TOTAL LIABILITIES & SHAREHOLDERS' EQUITY 76,093,323 76,185,992 (92,669)
----------------------------------------------------------
----------------------------------------------------------
<CAPTION>
(unaudited) (unaudited)
May 31, 1998 Apr 30, 1998
Continuing Continuing
Operations Operations Change
-----------------------------------------------------
<S> <C> <C> <C>
CURRENT ASSETS
Cash 662,743 784,138 (121,395)
Restricted cash held in escrow 2,615,491 2,615,381 110
Accounts receivable
A/R--trade 13,397,899 13,581,996 (184,097)
A/R--interco 5,152 2,676 2,476
A/R--employees 21,700 25,767 (4,067)
A/R--supplemental 1,881,922 1,883,112 (1,190)
A/R--misc. 1,086,172 1,267,681 (181,509)
Allowance for doubtful accounts (4,270,256) (4,262,830) (7,426)
-----------------------------------------------------
Accounts receivable, net 12,122,589 12,498,402 (375,813)
-----------------------------------------------------
Costs and earnings in excess of billings 5,254,860 5,696,773 (441,913)
Prepaid expenses 550,499 520,589 29,910
Inventory 3,807,915 3,884,440 (76,525)
Inventory reserve (1,573,649) (1,569,720) (3,929)
-----------------------------------------------------
Inventory, net 2,234,266 2,314,720 (80,454)
-----------------------------------------------------
Other current assets - - -
-----------------------------------------------------
TOTAL CURRENT ASSETS 23,440,448 24,430,003 (989,555)
-----------------------------------------------------
PROPERTY AND EQUIPMENT
Field equipment 2,689,721 2,555,627 134,094
Automotive equipment 1,786,987 1,650,817 136,170
Office furniture and equipment 1,901,840 2,254,641 (352,801)
Leasehold improvements 209,109 204,043 5,066
-----------------------------------------------------
TOTAL PROPERTY & EQUIP., AT COST 6,587,657 6,665,128 (77,471)
Accum. Depreciation (4,353,382) (4,202,830) (150,552)
-----------------------------------------------------
TOTAL PROPERTY & EQUIP., NET 2,234,275 2,462,298 (228,023)
-----------------------------------------------------
Long-term accounts receivable - Other (Texas) 1,053,883 1,053,883 -
Reserve for Long-term accounts receivable (350,000) (350,000) -
-----------------------------------------------------
Long-term accounts receviable - Other (Texas), net 703,883 703,883 -
Other Assets 307,882 307,882 -
Investment & Intercompany in Subsidiaires 74,785,282 74,785,282 -
-----------------------------------------------------
TOTAL ASSETS 101,471,770 102,689,348 (1,217,578)
-----------------------------------------------------
-----------------------------------------------------
POST PETITION CURRENT LIABILITIES
Accounts payable 270,972 442,742 (171,770)
Line of Credit 20,521,323 20,799,697 (278,374)
Accrued expenses, excluding bankruptcy costs 1,293,686 1,328,563 (34,877)
Accrued bankruptcy costs 2,968,800 2,813,589 155,211
Estimated claims against cash held in escrow 2,560,602 2,560,602 -
Intercompany - BNYFC (2,600,727) (2,816,461) 215,734
Intercompany payables 5,152 2,676 2,476
-----------------------------------------------------
TOTAL POST PETITION CURRENT LIABILITIES 25,019,808 25,131,408 (111,600)
Intercompany Notes Payable 8,741,768 8,741,768
Pre Petition Liabilities 5,767,008 5,807,076 (40,068)
Pre Petition Estimated Construction Claims - - -
-----------------------------------------------------
TOTAL LIABILITIES 39,528,584 39,680,252 (151,668)
-----------------------------------------------------
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 (16,903,459) (15,837,549) (1,065,910)
-----------------------------------------------------
TOTAL SHAREHOLDERS' EQUITY 61,943,186 63,009,096 (1,065,910)
-----------------------------------------------------
TOTAL LIABILITIES & SHAREHOLDERS' EQUITY 101,471,770 102,689,348 (1,217,578)
-----------------------------------------------------
-----------------------------------------------------
</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)
May 31, 1998 Apr 30, 1998
Discontinued Discontinued
Operations Operations Change
----------------------------------------------------------
<S> <C> <C> <C>
CURRENT ASSETS
Cash - - -
Restricted cash held in escrow -
Accounts receivable
A/R--trade 5,189,987 5,388,686 (198,699)
A/R--interco - - -
A/R--employees -
A/R--supplemental -
A/R--misc. 40,640 40,640 -
Allowance for doubtful accounts (2,807,722) (2,788,545) (19,177)
----------------------------------------------------------
Accounts receivable, net 2,422,905 2,640,781 (217,876)
----------------------------------------------------------
Costs and earnings in excess of billings -
Prepaid expenses -
Inventory -
Inventory reserve -
----------------------------------------------------------
Inventory, net - - -
----------------------------------------------------------
Other current assets 94,078 83,773 10,305
----------------------------------------------------------
TOTAL CURRENT ASSETS 2,516,983 2,724,554 (207,571)
----------------------------------------------------------
PROPERTY AND EQUIPMENT
Field equipment 1,000 4,831 (3,831)
Automotive equipment - 16,657 (16,657)
Office furniture and equipment - 3,518 (3,518)
Leasehold improvements 154,773 130,767 24,006
----------------------------------------------------------
TOTAL PROPERTY & EQUIP., AT COST 155,773 155,773 -
Accum. Depreciation (89,929) (78,397) (11,532)
----------------------------------------------------------
TOTAL PROPERTY & EQUIP., NET 65,844 77,376 (11,532)
----------------------------------------------------------
Long-term accounts receivable - Other (Texas) - - -
Reserve for Long-term accounts receivable -
----------------------------------------------------------
Long-term accounts receviable - Other (Texas), net - - -
Other Assets 100 20,815 (20,715)
Investment & Intercompany in Subsidiaires -
----------------------------------------------------------
TOTAL ASSETS 2,582,927 2,822,745 (239,818)
----------------------------------------------------------
----------------------------------------------------------
POST PETITION CURRENT LIABILITIES
Accounts payable - 41 (41)
Line of Credit
Accrued expenses, excluding bankruptcy costs - 20,403 (20,403)
Accrued bankruptcy costs
Estimated claims against cash held in escrow
Intercompany - BNYFC 2,600,727 2,816,461 (215,734)
Intercompany payables - - -
----------------------------------------------------------
TOTAL POST PETITION CURRENT LIABILITIES 2,600,727 2,836,905 (236,178)
Intercompany Notes Payable 2,535,455 2,535,455 -
Pre Petition Liabilities 10,276,211 10,276,211 -
Pre Petition Estimated Construction Claims 2,404,000 2,904,000 (500,000)
----------------------------------------------------------
TOTAL LIABILITIES 17,816,393 18,552,571 (736,178)
----------------------------------------------------------
SHAREHOLDERS' EQUITY
Common stock at par 2,082,948 2,082,948
Additional paid in capital 25,370,631 25,370,631
Treasury Stock A-P-I-C
Retained earnings - prior (32,353,340) (32,353,340)
Y-T-D net income pre petition (676,048) (676,048)
Y-T-D net income post petition (9,657,657) (10,154,017) 496,360
----------------------------------------------------------
TOTAL SHAREHOLDERS' EQUITY (15,233,466) (15,729,826) 496,360
----------------------------------------------------------
TOTAL LIABILITIES & SHAREHOLDERS' EQUITY 2,582,927 2,822,745 (239,818)
----------------------------------------------------------
----------------------------------------------------------
<CAPTION>
(unaudited) (unaudited)
May 31, 1998 Apr 30, 1998
Combined Combined
Final Final Change
---------------------------------------------------------
<S> <C> <C> <C>
CURRENT ASSETS
Cash 662,743 784,138 (121,395)
Restricted cash held in escrow 2,615,491 2,615,381 110
Accounts receivable
A/R--trade 18,587,886 18,970,682 (382,796)
A/R--interco - - -
A/R--employees 21,700 25,767 (4,067)
A/R--supplemental 1,881,922 1,883,112 (1,190)
A/R--misc. 1,126,812 1,308,321 (181,509)
Allowance for doubtful accounts (7,077,978) (7,051,375) (26,603)
----------------------------------------------------------
Accounts receivable, net 14,540,342 15,136,507 (596,165)
----------------------------------------------------------
Costs and earnings in excess of billings 5,254,860 5,696,773 (441,913)
Prepaid expenses 550,499 520,589 29,910
Inventory 3,807,915 3,884,440 (76,525)
Inventory reserve (1,573,649) (1,569,720) (3,929)
----------------------------------------------------------
Inventory, net 2,234,266 2,314,720 (80,454)
----------------------------------------------------------
Other current assets 94,078 83,773 10,305
----------------------------------------------------------
TOTAL CURRENT ASSETS 25,952,279 27,151,881 (1,199,602)
----------------------------------------------------------
PROPERTY AND EQUIPMENT
Field equipment 2,690,721 2,560,458 130,263
Automotive equipment 1,786,987 1,667,474 119,513
Office furniture and equipment 1,901,840 2,258,159 (356,319)
Leasehold improvements 363,882 334,810 29,072
----------------------------------------------------------
TOTAL PROPERTY & EQUIP., AT COST 6,743,430 6,820,901 (77,471)
Accum. Depreciation (4,443,311) (4,281,227) (162,084)
----------------------------------------------------------
TOTAL PROPERTY & EQUIP., NET 2,300,119 2,539,674 (239,555)
----------------------------------------------------------
Long-term accounts receivable - Other (Texas) 1,053,883 1,053,883 -
Reserve for Long-term accounts receivable (350,000) (350,000) -
----------------------------------------------------------
Long-term accounts receviable - Other (Texas), net 703,883 703,883 -
Other Assets 307,982 328,697 (20,715)
Investment & Intercompany in Subsidiaires 425,000 425,000 -
----------------------------------------------------------
TOTAL ASSETS 29,689,263 31,149,135 (1,459,872)
----------------------------------------------------------
----------------------------------------------------------
POST PETITION CURRENT LIABILITIES
Accounts payable 270,972 442,783 (171,811)
Line of Credit 20,521,323 20,799,697 (278,374)
Accrued expenses, excluding bankruptcy costs 1,293,687 1,348,967 (55,280)
Accrued bankruptcy costs 2,968,800 2,813,589 155,211
Estimated claims against cash held in escrow 2,560,602 2,560,602 -
Intercompany - BNYFC - - -
Intercompany payables - - -
----------------------------------------------------------
TOTAL POST PETITION CURRENT LIABILITIES 27,615,384 27,965,638 (350,254)
Intercompany Notes Payable
Pre Petition Liabilities 16,043,219 16,083,287 (40,068)
Pre Petition Estimated Construction Claims 2,404,000 2,904,000 (500,000)
----------------------------------------------------------
TOTAL LIABILITIES 46,062,603 46,952,925 (890,322)
----------------------------------------------------------
SHAREHOLDERS' EQUITY
Common stock at par 121,289 121,289
Additional paid in capital 124,480,374 124,480,374
Treasury Stock A-P-I-C (562,506) (562,506)
Retained earnings - prior (112,005,445) (112,005,445)
Y-T-D net income pre petition (1,845,936) (1,845,936)
Y-T-D net income post petition (26,561,116) (25,991,566) (569,550)
----------------------------------------------------------
TOTAL SHAREHOLDERS' EQUITY (16,373,340) (15,803,790) (569,550)
----------------------------------------------------------
TOTAL LIABILITIES & SHAREHOLDERS' EQUITY 29,689,263 31,149,135 (1,459,872)
----------------------------------------------------------
----------------------------------------------------------
</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)
Month Ended Month Ended
May 31, 1998 Apr 30, 1998
ESD ESD Change
-----------------------------------------------------
<S> <C> <C> <C>
Sales 1,022,634 1,230,621 (207,987)
Cost of Sales 777,840 809,883 (32,043)
-----------------------------------------------------
Gross Profit 244,794 420,738 (175,944)
Selling, General, and Administrative 386,168 396,610 (10,442)
-----------------------------------------------------
Income (Loss) From Operations (141,374) 24,128 (165,502)
Other Income(Expense):
I/C Interest Income (Expense) (70,025) (72,397) 2,372
Interest Expense (26) 380 (406)
Interest Income 141 597 (456)
Gain (loss) on Asset Disposition (7,196) (3,773) (3,423)
Other Expense (233,845) (9,766) (224,079)
-----------------------------------------------------
Total Other (Expense) (310,951) (84,959) (225,992)
Net Income (Loss) Before Bankruptcy
Administrative Expenses (452,325) (60,831) (391,494)
Bankruptcy Administrative Expenses
-----------------------------------------------------
Net Income (Loss) (452,325) (60,831) (391,494)
-----------------------------------------------------
<CAPTION>
(unaudited) (unaudited)
Month Ended Month Ended
May 31, 1998 Apr 30, 1998
PSD PSD Change
-----------------------------------------------------
<S> <C> <C> <C>
Sales 614,049 626,914 (12,865)
Cost of Sales 589,834 635,734 (45,900)
-----------------------------------------------------
Gross Profit 24,215 (8,820) 33,035
Selling, General, and Administrative 196,355 212,294 (15,939)
-----------------------------------------------------
Income (Loss) From Operations (172,140) (221,114) 48,974
Other Income(Expense):
I/C Interest Income (Expense) (73,198) (72,343) (855)
Interest Expense -
Interest Income -
Gain (loss) on Asset Disposition (9,430) (9,430)
Other Expense (13,863) (14,079) 216
-----------------------------------------------------
Total Other (Expense) (96,491) (86,422) (10,069)
Net Income (Loss) Before Bankruptcy
Administrative Expenses (268,631) (307,536) 38,905
Bankruptcy Administrative Expenses -
-----------------------------------------------------
Net Income (Loss) (268,631) (307,536) 38,905
-----------------------------------------------------
</TABLE>
See accompanying notes to financial statement information.
<PAGE>
OMEGA ENVIRONMENTAL, INC.
DEBTOR IN POSSESSION CASE #97-06084
COMPARATIVE STATEMENT OF
OPERATIONS INFORMATION
<TABLE>
(unaudited) (unaudited)
Month Ended Month Ended
May 31, 1998 Apr 30, 1998
Corporate Corporate Change
-----------------------------------------------------
<S> <C> <C> <C>
Sales - - -
Cost of Sales - - -
-----------------------------------------------------
Gross Profit - - -
Selling, General, and Administrative 153,047 185,780 (32,733)
-----------------------------------------------------
Income (Loss) From Operations (153,047) (185,780) 32,733
Other Income(Expense):
I/C Interest Income (Expense) 143,223 144,740 (1,517)
Interest Expense (183,992) (179,172) (4,820)
Interest Income -
Gain (loss) on Asset Disposition -
Other Expense 4,073 (9,478) 13,551
-----------------------------------------------------
Total Other (Expense) (36,696) (43,910) 7,214
Net Income (Loss) Before Bankruptcy
Administrative Expenses (189,743) (229,690) 39,947
Bankruptcy Administrative Expenses (155,211) (155,460) 249
-----------------------------------------------------
Net Income (Loss) (344,954) (385,150) 40,196
-----------------------------------------------------
<CAPTION>
(unaudited) (unaudited)
Month Ended Month Ended
May 31, 1998 Apr 30, 1998
Continuing Continuing
Operations Operations Change
-----------------------------------------------------
<S> <C> <C> <C>
Sales 1,636,683 1,857,535 (220,852)
Cost of Sales 1,367,674 1,445,617 (77,943)
-----------------------------------------------------
Gross Profit 269,009 411,918 (142,909)
Selling, General, and Administrative 735,570 794,684 (59,114)
-----------------------------------------------------
Income (Loss) From Operations (466,561) (382,766) (83,795)
Other Income(Expense):
I/C Interest Income (Expense) - - -
Interest Expense (184,018) (178,792) (5,226)
Interest Income 141 597 (456)
Gain (loss) on Asset Disposition (16,626) (3,773) (12,853)
Other Expense (243,635) (33,323) (210,312)
-----------------------------------------------------
Total Other (Expense) (444,138) (215,291) (228,847)
Net Income (Loss) Before Bankruptcy
Administrative Expenses (910,699) (598,057) (312,642)
Bankruptcy Administrative Expenses (155,211) (155,460) 249
-----------------------------------------------------
Net Income (Loss) (1,065,910) (753,517) (312,393)
-----------------------------------------------------
</TABLE>
<PAGE>
OMEGA ENVIRONMENTAL, INC.
DEBTOR IN POSSESSION CASE #97-06084
COMPARATIVE STATEMENT OF
OPERATIONS INFORMATION
<TABLE>
<CAPTION>
(unaudited) (unaudited)
Month Ended Month Ended
May 31, 1998 Apr 30, 1998
Discontinued Discontinued
Operations Operations Change
-----------------------------------------------------
<S> <C> <C> <C>
Sales -
Cost of Sales -
-----------------------------------------------------
Gross Profit - - -
Selling, General, and Administrative -
-----------------------------------------------------
Income (Loss) From Operations - - -
Other Income(Expense):
I/C Interest Income (Expense) -
Interest Expense -
Interest Income -
Gain (loss) on Asset Disposition -
Other Expense 496,360 (37,613) 533,973
-----------------------------------------------------
Total Other (Expense) 496,360 (37,613) 533,973
Net Income (Loss) Before Bankruptcy
Administrative Expenses 496,360 (37,613) 533,973
Bankruptcy Administrative Expenses -
-----------------------------------------------------
Net Income (Loss) 496,360 (37,613) 533,973
-----------------------------------------------------
<CAPTION>
(unaudited) (unaudited)
Month Ended Month Ended
May 31, 1998 Apr 30, 1998
Combined Combined
Final Final Change
---------------------------------------------------
<S> <C> <C> <C>
Sales 1,631,964 1,856,449 (224,485)
Cost of Sales 1,362,955 1,444,531 (81,576)
---------------------------------------------------
Gross Profit 269,009 411,918 (142,909)
Selling, General, and Administrative 735,570 794,684 (59,114)
---------------------------------------------------
Income (Loss) From Operations (466,561) (382,766) (83,795)
Other Income(Expense):
I/C Interest Income (Expense) - - -
Interest Expense (184,018) (178,792) (5,226)
Interest Income 141 597 (456)
Gain (loss) on Asset Disposition (16,626) (3,773) (12,853)
Other Expense 252,725 (70,936) 323,661
---------------------------------------------------
Total Other (Expense) 52,222 (252,904) 305,126
Net Income (Loss) Before Bankruptcy
Administrative Expenses (414,339) (635,670) 221,331
Bankruptcy Administrative Expenses (155,211) (155,460) 249
---------------------------------------------------
Net Income (Loss) (569,550) (791,130) 221,580
---------------------------------------------------
</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>
(unaudited) (unaudited)
Month Ended Month Ended
May 31, 1998 Apr 30, 1998 Change
--------------------- ------------------- --------------------
<S> <C> <C>
Cash flows from operating activities:
Net loss ($569,550) ($791,130) $221,580
Adjustments to reconcile net loss to net cash
(used in) provided by operating activities:
Depreciation 102,743 85,206 17,537
Additional reserves for costs in excess of billings 225,000 225,000
(Gain) / Loss on sale of property and equipment 16,626 (3,773) 20,399
Change in certain assets & liabilities:
(Increase) decrease in:
Receivables 596,165 291,086 305,079
Costs in excess of billings 216,913 155,399 61,514
Inventory 80,454 29,680 50,774
Prepaids & other assets (40,215) (34,829) (5,386)
Increase (decrease) in:
Accounts payable (171,811) 11,162 (182,973)
Accrued expenses 179,717 146,794 32,923
Other net changes in assets and liabilities 20,605 230,447 (209,842
--------------------- ------------------- --------------------
Total adjustments 1,226,197 911,172 315,025
--------------------- ------------------- --------------------
Net cash provided by operating activities 656,647 120,042 536,605
Cash flows from investing activities:
Proceeds from sale of equipment 56,100 1,900 54,200
Additions to property and equipment (15,700) (9,354) (6,346)
--------------------- ------------------- --------------------
Net cash provided by (used in) investing activities 40,400 (7,454) 47,854
Cash flows from financing and other activities:
Net proceeds (repayments) from revolver credit loan (278,374) 195,344 (473,718)
Increase (decrease) in pre petition liabilities (540,068) (34,270) (505,798)
--------------------- ------------------- --------------------
Net cash provided by (used in) financing activities (818,442) 161,074 (979,516)
--------------------- ------------------- --------------------
Net increase in cash (121,395) 273,662 (395,057)
Cash at beginning of period 784,138 510,476 273,662
--------------------- ------------------- --------------------
Cash at end of period $662,743 $784,138 ($121,395)
--------------------- ------------------- --------------------
--------------------- ------------------- --------------------
</TABLE>
See accompanying notes to financial statement information.
<PAGE>
EXHIBIT 99.1
Omega Environmental, Inc.
Debtor in Possession Case # 97-06084
May 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 May 31, 1998, the Company's borrowings from BNY Financial Corporation
("BNYFC") were $20,521,323. 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. These
new procedures resulted in $225,000 of write-offs in May 1998. The analysis is
not complete and any adjustment to this asset may have a material adverse effect
on the financial statements.
Accounts Receivable
Accounts receivable recorded on the Environmental Services Division's balance
sheet are primarily due from various State reimbursement programs for clean up
of leaking underground storage tanks. Management is in the process of analyzing
the collectability of these accounts and estimated bad debts may be
significantly in excess of established reserves. The results of this analysis
are not complete at this time and any adjustment may have a material adverse
effect on the financial statements.
<PAGE>
Accounts receivable recorded on the Discontinued Operation's balance sheet
represents amounts recorded as due from customers in the company's discontinued
construction activities. The amounts ultimately collected by the company will be
significantly less than net recorded amounts in part because of set-offs, liens,
bonding issues and customer disputes which may result in refusal to pay
receivable amounts or require payment or set-off of pre-petition liabilities and
claims. The amount ultimately collectible is not determinable at this time.
Inventory
Inventory recorded on the Petroleum Services Division's balance sheet consists
primarily of component parts for servicing retail and commercial fueling
facilities. The use of these parts has decreased significantly due to the
decline in the level of business activity from prior periods. Management is in
the process of selling excess parts. Losses on sale of these excess parts may
exceed recorded reserves. The amount of loss can not be determined at this
time.
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