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Previous: REGAN HOLDING CORP, 8-K, 1999-04-16 |
Next: LIBERTY TERM TRUST INC 1999, DEF 14A, 1999-04-16 |
<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) April 12, 1999
-----------------
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)
550 KIRKLAND WAY, SUITE 200, KIRKLAND, WASHINGTON 98033
PO BOX 3005 BOTHELL, WASHINGTON 98041-3005
(ADDRESS OF PRINCIPAL EXECUTIVE OFFICES) (ZIP CODE)
425-739-2072
(REGISTRANTS TELEPHONE NUMBER, INCLUDING AREA CODE)
- -------------------------------------------------------------------------------
(FORMER NAME OR FORMER ADDRESS, 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 April 12, 1999, the Registrant filed unaudited financial statement
information as of and for each of the months ended January 31, 1999
and December 31, 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 January 31, 1999 and December 31, 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: April 12, 1999 /s/ Donald E. Condit
-------------------------------------
Donald E. Condit
Chief Financial Officer
<PAGE>
OMEGA ENVIRONMENTAL, INC. EXHIBIT 99.1
DEBTOR IN POSESSION CASE #97-06084
COMPARATIVE BALANCE SHEET INFORMATION
<TABLE>
<CAPTION>
(unaudited) (unaudited)
Jan. 31, 1999 Dec. 31. 1998
ESD ESD Change
-------------------------------------------------------------
<S> <C> <C> <C>
CURRENT ASSETS
Cash 42,853 - 42,853
Restricted cash held in escrow 2,738,168 2,738,168 -
Accounts receivable
A/R--trade 11,931,835 11,898,612 33,223
A/R--interco -
A/R--employees 3,121 6,803 (3,682)
A/R--supplemental 1,367,675 1,727,115 (359,440)
A/R--misc. 12,078 12,078 -
Allowance for doubtful accounts (1,841,230) (2,123,075) 281,845
-------------------------------------------------------------
Accounts receivable, net 11,473,479 11,521,533 (48,054)
-------------------------------------------------------------
Costs and earnings in excess of billings 5,385,141 5,442,514 (57,373)
Prepaid expenses 6,201 61,045 (54,844)
Inventory -
Inventory reserve -
-------------------------------------------------------------
Inventory, net - - -
-------------------------------------------------------------
Other current assets -
-------------------------------------------------------------
TOTAL CURRENT ASSETS 19,645,842 19,763,260 (117,418)
-------------------------------------------------------------
PROPERTY AND EQUIPMENT
Field equipment 2,352,810 2,352,810 -
Automotive equipment 1,124,549 1,124,549 -
Office furniture and equipment 967,334 967,334 -
Leasehold improvements 107,729 107,729 -
-------------------------------------------------------------
TOTAL PROPERTY & EQUIP., AT COST 4,552,422 4,552,422 -
Accum. Depreciation (3,409,023) (3,346,117) (62,906)
-------------------------------------------------------------
-------------------------------------------------------------
TOTAL PROPERTY & EQUIP., NET 1,143,399 1,206,305 (62,906)
-------------------------------------------------------------
Long-term accounts receivable - Other (Texas) 2,426 2,426 -
Reserve for Long-term accounts receivable -
-------------------------------------------------------------
Long-term accounts receviable - Other (Texas), net 2,426 2,426 -
Other Assets 223,609 223,609 -
Investment & Intercompany in Subsidiaires -
-------------------------------------------------------------
-------------------------------------------------------------
TOTAL ASSETS 21,015,276 21,195,600 (180,324)
-------------------------------------------------------------
-------------------------------------------------------------
POST PETITION CURRENT LIABILITIES
Accounts payable 653,700 542,204 111,496
Line of Credit
Accrued expenses, excluding bankruptcy costs 604,200 717,531 (113,331)
Accrued bankruptcy costs
Estimated claims against cash held in escrow 2,578,438 2,578,438 -
Intercompany - BNYFC 7,765,310 7,658,341 106,969
Intercompany payables -
-------------------------------------------------------------
TOTAL POST PETITION CURRENT LIABILITIES 11,601,648 11,496,514 105,134
Intercompany Notes Payable 8,741,768 8,741,768 -
Pre Petition Liabilities 1,620,033 1,620,428 (395)
Pre Petition Estimated Construction Claims
-------------------------------------------------------------
TOTAL LIABILITIES 21,963,449 21,858,710 104,739
-------------------------------------------------------------
SHAREHOLDERS' EQUITY
Common stock at par
Additional paid in capital 14,557,677 14,557,677 -
Treasury Stock A-P-I-C
Retained earnings - prior (11,012,975) (11,012,975) -
Y-T-D net income pre petition (8,531) (8,531) -
Y-T-D net income post petition (4,484,344) (4,199,281) (285,063)
-------------------------------------------------------------
TOTAL SHAREHOLDERS' EQUITY (948,173) (663,110) (285,063)
-------------------------------------------------------------
-------------------------------------------------------------
TOTAL LIABILITIES & SHAREHOLDERS' EQUITY 21,015,276 21,195,600 (180,324)
-------------------------------------------------------------
-------------------------------------------------------------
(unaudited) (unaudited)
Jan. 31, 1999 Dec. 31. 1998
PSD PSD Change
------------------------------------------------------
<C> <C> <C>
CURRENT ASSETS
Cash 37,536 28,386 9,150
Restricted cash held in escrow -
Accounts receivable
A/R--trade 312,556 524,421 (211,865)
A/R--interco - - -
A/R--employees 2,200 2,400 (200)
A/R--supplemental -
A/R--misc. - - -
Allowance for doubtful accounts (48,902) (54,298) 5,396
--------------------------------------------------------
Accounts receivable, net 265,854 472,523 (206,669)
--------------------------------------------------------
Costs and earnings in excess of billings -
Prepaid expenses 49,841 48,028 1,813
Inventory 679,663 1,006,203 (326,540)
Inventory reserve (173,950) (497,620) 323,670
--------------------------------------------------------
Inventory, net 505,713 508,583 (2,870)
--------------------------------------------------------
Other current assets -
--------------------------------------------------------
TOTAL CURRENT ASSETS 858,944 1,057,520 (198,576)
--------------------------------------------------------
PROPERTY AND EQUIPMENT
Field equipment 166,580 166,580 -
Automotive equipment 10,871 10,871 -
Office furniture and equipment 7,793 7,793 -
Leasehold improvements 30,895 30,895 -
--------------------------------------------------------
TOTAL PROPERTY & EQUIP., AT COST 216,139 216,139 -
Accum. Depreciation (114,758) (111,738) (3,020)
--------------------------------------------------------
--------------------------------------------------------
TOTAL PROPERTY & EQUIP., NET 101,381 104,401 (3,020)
--------------------------------------------------------
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 960,325 1,161,921 (201,596)
--------------------------------------------------------
--------------------------------------------------------
POST PETITION CURRENT LIABILITIES
Accounts payable 26,031 27,276 (1,245)
Line of Credit -
Accrued expenses, excluding bankruptcy costs 149,087 144,894 4,193
Accrued bankruptcy costs -
Estimated claims against cash held in escrow -
Intercompany - BNYFC 7,756,672 7,817,780 (61,108)
Intercompany payables - - -
--------------------------------------------------------
TOTAL POST PETITION CURRENT LIABILITIES 7,931,790 7,989,950 (58,160)
Intercompany Notes Payable -
Pre Petition Liabilities 949,872 951,742 (1,870)
Pre Petition Estimated Construction Claims -
--------------------------------------------------------
TOTAL LIABILITIES 8,881,662 8,941,692 (60,030)
--------------------------------------------------------
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 (7,019,582) (6,878,016) (141,566)
--------------------------------------------------------
TOTAL SHAREHOLDERS' EQUITY (7,921,337) (7,779,771) (141,566)
--------------------------------------------------------
--------------------------------------------------------
TOTAL LIABILITIES & SHAREHOLDERS' EQUITY 960,325 1,161,921 (201,596)
--------------------------------------------------------
--------------------------------------------------------
</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)
JAN. 31, 1999 DEC. 31. 1998
CORPORATE CORPORATE CHANGE
----------------------------------------------------
<S> <C> <C> <C>
CURRENT ASSETS
Cash 43,489 49,850 (6,361)
Restricted cash held in escrow -
Accounts receivable
A/R--trade - 28,029 (28,029)
A/R--interco -
A/R--employees -
A/R--supplemental -
A/R--misc. 1,219,094 1,219,094 -
Allowance for doubtful accounts (1,076,094) (1,104,123) 28,029
----------------------------------------------------
Accounts receivable, net 143,000 143,000 0
----------------------------------------------------
Costs and earnings in excess of billings -
Prepaid expenses 77,062 120,175 (43,113)
Inventory -
Inventory reserve -
----------------------------------------------------
Inventory, net - - -
----------------------------------------------------
Other current assets -
----------------------------------------------------
TOTAL CURRENT ASSETS 263,551 313,025 (49,474)
----------------------------------------------------
PROPERTY AND EQUIPMENT
Field equipment -
Automotive equipment -
Office furniture and equipment 41,050 41,050 -
Leasehold improvements - - -
----------------------------------------------------
TOTAL PROPERTY & EQUIP., AT COST 41,050 41,050 -
Accum. Depreciation (32,950) (32,643) (307)
----------------------------------------------------
TOTAL PROPERTY & EQUIP., NET 8,100 8,407 (307)
----------------------------------------------------
Long-term accounts receivable - Other (Texas) - - -
----------------------------------------------------
Reserve for Long-term accounts receivable -
Long-term accounts receviable - Other (Texas), net - - -
Other Assets 65,425 154,425 (89,000)
Investment & Intercompany in Subsidiaires 74,375,430 74,375,430 -
----------------------------------------------------
TOTAL ASSETS 74,712,506 74,851,287 (138,781)
----------------------------------------------------
----------------------------------------------------
POST PETITION CURRENT LIABILITIES
Accounts payable 79,074 57,417 21,657
Line of Credit 22,599,213 22,534,478 64,735
Accrued expenses, excluding bankruptcy costs 96,160 293,190 (197,030)
Accrued bankruptcy costs 1,749,267 1,739,109 10,158
Estimated claims against cash held in escrow -
Intercompany - BNYFC (18,261,766) (18,296,028) 34,262
Intercompany payables - - -
----------------------------------------------------
TOTAL POST PETITION CURRENT LIABILITIES 6,261,948 6,328,166 (66,218)
Intercompany Notes Payable -
Pre Petition Liabilities 2,637,103 2,637,103 -
Pre Petition Estimated Construction Claims -
----------------------------------------------------
TOTAL LIABILITIES 8,899,051 8,965,269 (66,218)
----------------------------------------------------
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 (11,733,357) (11,660,794) (72,563)
----------------------------------------------------
TOTAL SHAREHOLDERS' EQUITY 65,813,455 65,886,018 (72,563)
----------------------------------------------------
TOTAL LIABILITIES & SHAREHOLDERS' EQUITY 74,712,506 74,851,287 (138,781)
----------------------------------------------------
----------------------------------------------------
(UNAUDITED) (UNAUDITED)
JAN. 31, 1999 DEC. 31. 1998
CONTINUING CONTINUING
OPERATIONS OPERATIONS CHANGE
----------------------------------------------------
<S> <C> <C> <C>
CURRENT ASSETS
Cash 123,878 78,236 45,642
Restricted cash held in escrow 2,738,168 2,738,168 -
Accounts receivable
A/R--trade 12,244,391 12,451,062 (206,671)
A/R--interco - - -
A/R--employees 5,321 9,203 (3,882)
A/R--supplemental 1,367,675 1,727,115 (359,440)
A/R--misc. 1,231,172 1,231,172 -
Allowance for doubtful accounts (2,966,226) (3,281,496) 315,270
----------------------------------------------------
Accounts receivable, net 11,882,333 12,137,056 (254,723)
----------------------------------------------------
Costs and earnings in excess of billings 5,385,141 5,442,514 (57,373)
Prepaid expenses 133,104 229,248 (96,144)
Inventory 679,663 1,006,203 (326,540)
Inventory reserve (173,950) (497,620) 323,670
----------------------------------------------------
Inventory, net 505,713 508,583 (2,870)
----------------------------------------------------
Other current assets - - -
----------------------------------------------------
TOTAL CURRENT ASSETS 20,768,337 21,133,805 (365,468)
----------------------------------------------------
PROPERTY AND EQUIPMENT
Field equipment 2,519,390 2,519,390 -
Automotive equipment 1,135,420 1,135,420 -
Office furniture and equipment 1,016,177 1,016,177 -
Leasehold improvements 138,624 138,624 -
----------------------------------------------------
TOTAL PROPERTY & EQUIP., AT COST 4,809,611 4,809,611 -
Accum. Depreciation (3,556,731) (3,490,498) (66,233)
----------------------------------------------------
TOTAL PROPERTY & EQUIP., NET 1,252,880 1,319,113 (66,233)
----------------------------------------------------
Long-term accounts receivable - Other (Texas) 2,426 2,426 -
----------------------------------------------------
Reserve for Long-term accounts receivable - - -
Long-term accounts receviable - Other (Texas), net 2,426 2,426 -
Other Assets 289,034 378,034 (89,000)
Investment & Intercompany in Subsidiaires 74,375,430 74,375,430 -
----------------------------------------------------
TOTAL ASSETS 96,688,107 97,208,808 (520,701)
----------------------------------------------------
----------------------------------------------------
POST PETITION CURRENT LIABILITIES
Accounts payable 758,805 626,897 131,908
Line of Credit 22,599,213 22,534,478 64,735
Accrued expenses, excluding bankruptcy costs 849,447 1,155,615 (306,168)
Accrued bankruptcy costs 1,749,267 1,739,109 10,158
Estimated claims against cash held in escrow 2,578,438 2,578,438 -
Intercompany - BNYFC (2,739,784) (2,819,907) 80,123
Intercompany payables - - -
----------------------------------------------------
TOTAL POST PETITION CURRENT LIABILITIES 25,795,386 25,814,630 (19,244)
Intercompany Notes Payable 8,741,768 8,741,768
Pre Petition Liabilities 5,207,008 5,209,273 (2,265)
Pre Petition Estimated Construction Claims - - -
----------------------------------------------------
TOTAL LIABILITIES 39,744,162 39,765,671 (21,509)
----------------------------------------------------
SHAREHOLDERS' EQUITY
Common stock at par 3,492,461 3,492,461 -
Additional paid in capital 153,504,496 153,504,496 -
Treasury Stock A-P-I-C (562,506) (562,506) -
Retained earnings - prior (75,101,300) (75,101,300) -
Y-T-D net income pre petition (1,151,923) (1,151,923) -
Y-T-D net income post petition (23,237,283) (22,738,091) (499,192)
----------------------------------------------------
TOTAL SHAREHOLDERS' EQUITY 56,943,945 57,443,137 (499,192)
----------------------------------------------------
TOTAL LIABILITIES & SHAREHOLDERS' EQUITY 96,688,107 97,208,808 (520,701)
----------------------------------------------------
----------------------------------------------------
</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)
JAN. 31, 1999 DEC. 31. 1998
DISCONTINUED DISCONTINUED
OPERATIONS OPERATIONS CHANGE
---------------------------------------------
<S> <C> <C> <C>
CURRENT ASSETS
Cash - - -
Restricted cash held in escrow -
Accounts receivable
A/R--trade 4,918,797 5,068,213 (149,416)
A/R--interco - - -
A/R--employees -
A/R--supplemental -
A/R--misc. 33,806 33,806 -
Allowance for doubtful accounts (3,263,962) (3,263,839) (123)
---------------------------------------------
Accounts receivable, net 1,688,641 1,838,180 (149,539)
---------------------------------------------
Costs and earnings in excess of billings -
Prepaid expenses -
Inventory -
Inventory reserve -
---------------------------------------------
Inventory, net - - -
---------------------------------------------
Other current assets 10,000 10,000 -
---------------------------------------------
TOTAL CURRENT ASSETS 1,698,641 1,848,180 (149,539)
---------------------------------------------
PROPERTY AND EQUIPMENT
Field equipment 1,000 1,000 -
Automotive equipment - - -
Office furniture and equipment - - -
Leasehold improvements - - -
---------------------------------------------
TOTAL PROPERTY & EQUIP., AT COST 1,000 1,000 -
---------------------------------------------
Accum. Depreciation - - -
---------------------------------------------
TOTAL PROPERTY & EQUIP., NET 1,000 1,000 -
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 1,699,641 1,849,180 (149,539)
---------------------------------------------
---------------------------------------------
POST PETITION CURRENT LIABILITIES
Accounts payable - - -
Line of Credit
Accrued expenses, excluding bankruptcy costs - - -
Accrued bankruptcy costs
Estimated claims against cash held in escrow
Intercompany - BNYFC 2,739,784 2,819,907 (80,123)
Intercompany payables - - -
---------------------------------------------
TOTAL POST PETITION CURRENT LIABILITIES 2,739,784 2,819,907 (80,123)
Intercompany Notes Payable 2,535,455 2,535,455 -
Pre Petition Liabilities 10,814,353 10,814,353 -
Pre Petition Estimated Construction Claims 2,000,000 2,000,000 -
---------------------------------------------
TOTAL LIABILITIES 18,089,592 18,169,715 (80,123)
---------------------------------------------
SHAREHOLDERS' EQUITY
Common stock at par 2,082,948 2,082,948 -
Additional paid in capital 28,604,818 28,604,818 -
Treasury Stock A-P-I-C -
Retained earnings - prior (36,904,145) (36,904,145) -
Y-T-D net income pre petition (694,013) (694,013) -
Y-T-D net income post petition (9,479,559) (9,410,143) (69,416)
---------------------------------------------
TOTAL SHAREHOLDERS' EQUITY (16,389,951) (16,320,535) (69,416)
---------------------------------------------
TOTAL LIABILITIES & SHAREHOLDERS' EQUITY 1,699,641 1,849,180 (149,539)
---------------------------------------------
---------------------------------------------
(UNAUDITED) (UNAUDITED)
JAN. 31, 1999 DEC. 31. 1998
COMBINED COMBINED
FINAL FINAL CHANGE
--------------------------------------------
<S> <C> <C> <C>
CURRENT ASSETS
Cash 123,878 78,236 45,642
Restricted cash held in escrow 2,738,168 2,738,168 -
Accounts receivable
A/R--trade 17,163,188 17,519,275 (356,087)
A/R--interco - - -
A/R--employees 5,321 9,203 (3,882)
A/R--supplemental 1,367,675 1,727,115 (359,440)
A/R--misc. 1,264,978 1,264,978 -
Allowance for doubtful accounts (6,230,188) (6,545,335) 315,147
--------------------------------------------
Accounts receivable, net 13,570,974 13,975,236 (404,262)
--------------------------------------------
Costs and earnings in excess of billings 5,385,141 5,442,514 (57,373)
Prepaid expenses 133,104 229,248 (96,144)
Inventory 679,663 1,006,203 (326,540)
Inventory reserve (173,950) (497,620) 323,670
--------------------------------------------
Inventory, net 505,713 508,583 (2,870)
--------------------------------------------
Other current assets 10,000 10,000 -
--------------------------------------------
TOTAL CURRENT ASSETS 22,466,978 22,981,985 (515,007)
--------------------------------------------
PROPERTY AND EQUIPMENT
Field equipment 2,520,390 2,520,390 -
Automotive equipment 1,135,420 1,135,420 -
Office furniture and equipment 1,016,177 1,016,177 -
Leasehold improvements 138,624 138,624 -
--------------------------------------------
TOTAL PROPERTY & EQUIP., AT COST 4,810,611 4,810,611 -
Accum. Depreciation (3,556,731) (3,490,498) (66,233)
--------------------------------------------
TOTAL PROPERTY & EQUIP., NET 1,253,880 1,320,113 (66,233)
--------------------------------------------
Long-term accounts receivable - Other (Texas) 2,426 2,426 -
Reserve for Long-term accounts receivable - - -
--------------------------------------------
Long-term accounts receviable - Other (Texas), net 2,426 2,426 -
Other Assets 289,034 378,034 (89,000)
Investment & Intercompany in Subsidiaires - -
--------------------------------------------
TOTAL ASSETS 24,012,318 24,682,558 (670,240)
--------------------------------------------
--------------------------------------------
POST PETITION CURRENT LIABILITIES
Accounts payable 758,805 626,897 131,908
Line of Credit 22,599,213 22,534,478 64,735
Accrued expenses, excluding bankruptcy costs 849,447 1,155,615 (306,168)
Accrued bankruptcy costs 1,749,267 1,739,109 10,158
Estimated claims against cash held in escrow 2,578,438 2,578,438 -
Intercompany - BNYFC - - -
Intercompany payables - - -
--------------------------------------------
TOTAL POST PETITION CURRENT LIABILITIES 28,535,170 28,634,537 (99,367)
Intercompany Notes Payable
Pre Petition Liabilities 16,021,361 16,023,626 (2,265)
Pre Petition Estimated Construction Claims 2,000,000 2,000,000 -
--------------------------------------------
TOTAL LIABILITIES 46,556,531 46,658,163 (101,632)
--------------------------------------------
SHAREHOLDERS' EQUITY
Common stock at par 121,289 121,289 -
Additional paid in capital 124,465,227 124,465,227 -
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 (32,716,842) (32,148,234) (568,608)
--------------------------------------------
TOTAL SHAREHOLDERS' EQUITY (22,544,213) (21,975,605) (568,608)
--------------------------------------------
TOTAL LIABILITIES & SHAREHOLDERS' EQUITY 24,012,318 24,682,558 (670,240)
--------------------------------------------
--------------------------------------------
</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
JAN. 31, 1999 DEC. 31. 1998
ESD ESD CHANGE
-----------------------------------------------
<S> <C> <C> <C>
Sales 1,305,830 1,307,449 (1,619)
Cost of Sales 999,989 1,052,980 (52,991)
-----------------------------------------------
Gross Profit 305,841 254,469 51,372
Selling, General, and Administrative 520,506 406,988 113,518
-----------------------------------------------
Income (Loss) From Operations (214,665) (152,519) (62,146)
Other Income(Expense):
I/C Interest Income (Expense) (70,272) (67,611) (2,661)
Interest Expense (126) (74) (52)
Interest Income - - -
Gain (loss) on Asset Disposition - - -
Other Expense - 628 (628)
-----------------------------------------------
Total Other (Expense) (70,398) (67,057) (3,341)
Net Income (Loss) Before Bankruptcy
Administrative Expenses (285,063) (219,576) (65,487)
Bankruptcy Administrative Expenses -
-----------------------------------------------
Net Income (Loss) (285,063) (219,576) (65,487)
-----------------------------------------------
-----------------------------------------------
(UNAUDITED) (UNAUDITED)
MONTH ENDED MONTH ENDED
JAN. 31, 1999 DEC. 31. 1998
PSD PSD CHANGE
---------------------------------------------
<S> <C> <C> <C>
Sales 73,880 126,569 (52,689)
Cost of Sales 95,627 131,792 (36,165)
---------------------------------------------
Gross Profit (21,747) (5,223) (16,524)
Selling, General, and Administrative 52,629 59,372 (6,743)
---------------------------------------------
Income (Loss) From Operations (74,376) (64,595) (9,781)
Other Income(Expense):
I/C Interest Income (Expense) (70,334) (70,415) 81
Interest Expense -
Interest Income -
Gain (loss) on Asset Disposition 3,144 (331,087) 334,231
Other Expense - 216 (216)
---------------------------------------------
Total Other (Expense) (67,190) (401,286) 334,096
Net Income (Loss) Before Bankruptcy
Administrative Expenses (141,566) (465,881) 324,315
Bankruptcy Administrative Expenses
---------------------------------------------
Net Income (Loss) (141,566) (465,881) 324,315
---------------------------------------------
---------------------------------------------
</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
JAN. 31, 1999 DEC. 31. 1998
CORPORATE CORPORATE CHANGE
---------------------------------------------
<S> <C> <C> <C>
Sales - - -
Cost of Sales - - -
---------------------------------------------
Gross Profit - - -
Selling, General, and Administrative 95,084 134,494 (39,410)
---------------------------------------------
Income (Loss) From Operations (95,084) (134,494) 39,410
Other Income(Expense):
I/C Interest Income (Expense) 140,606 138,026 2,580
Interest Expense (198,687) (197,626) (1,061)
Interest Income - 0 0
Gain (loss) on Asset Disposition - (8,376) 8,376
Other Expense 150,000 (173,176) 323,176
---------------------------------------------
Total Other (Expense) 91,919 (241,152) 333,071
Net Income (Loss) Before Bankruptcy
Administrative Expenses (3,165) (375,646) 372,481
Bankruptcy Administrative Expenses (69,398) (204,415) 135,017
---------------------------------------------
Net Income (Loss) (72,563) (580,061) 507,498
---------------------------------------------
---------------------------------------------
(UNAUDITED) (UNAUDITED)
MONTH ENDED MONTH ENDED
JAN. 31, 1999 DEC. 31. 1998
CONTINUING CONTINUING
OPERATIONS OPERATIONS CHANGE
----------------------------------------------
<S> <C> <C> <C>
Sales 1,379,710 1,434,018 (54,308)
Cost of Sales 1,095,616 1,184,772 (89,156)
----------------------------------------------
Gross Profit 284,094 249,246 34,848
Selling, General, and Administrative 668,219 600,854 67,365
----------------------------------------------
Income (Loss) From Operations (384,125) (351,608) (32,517)
Other Income(Expense):
I/C Interest Income (Expense) 0 0 0
Interest Expense (198,813) (197,700) (1,113)
Interest Income 0
Gain (loss) on Asset Disposition 3,144 (339,463) 342,607
Other Expense 150,000 (172,332) 322,332
----------------------------------------------
Total Other (Expense) (45,669) (709,495) 663,826
Net Income (Loss) Before Bankruptcy
Administrative Expenses (429,794) (1,061,103) 631,309
Bankruptcy Administrative Expenses (69,398) (204,415) 135,017
----------------------------------------------
Net Income (Loss) (499,192) (1,265,518) 766,326
----------------------------------------------
----------------------------------------------
</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
JAN. 31, 1999 DEC. 31, 1998
DISCONTINUED DISCONTINUED
OPERATIONS OPERATIONS CHANGE
------------------------------------------
<S> <C> <C> <C>
Sales 0
Cost of Sales 0
------------------------------------------
Gross Profit 0 0 0
Selling, General, and Administrative 0
------------------------------------------
Income (Loss) From Operations 0 0 0
Other Income(Expense):
I/C Interest Income (Expense) 0
Interest Expense 0
Interest Income 0
Gain (loss) on Asset Disposition 0
Other Expense (69,416) 399,668 (469,084)
------------------------------------------
Total Other (Expense) (69,416) 399,668 (469,084)
Net Income (Loss) Before Bankruptcy
Administrative Expenses (69,416) 399,668 (469,084)
Bankruptcy Administrative Expenses 0
------------------------------------------
Net Income (Loss) (69,416) 399,668 (469,084)
------------------------------------------
------------------------------------------
(UNAUDITED) (UNAUDITED)
MONTH ENDED MONTH ENDED
JAN. 31, 1999 DEC. 31, 1998
COMBINED COMBINED
FINAL FINAL CHANGE
----------------------------------------
<S> <C> <C> <C>
Sales 1,379,710 1,434,018 (54,308)
Cost of Sales 1,095,616 1,184,772 (89,156)
----------------------------------------
Gross Profit 284,094 249,246 34,848
Selling, General, and Administrative 668,219 600,854 67,365
----------------------------------------
Income (Loss) From Operations (384,125) (351,608) (32,517)
Other Income(Expense):
I/C Interest Income (Expense) 0 0 0
Interest Expense (198,813) (197,700) (1,113)
Interest Income 0 0 0
Gain (loss) on Asset Disposition 3,144 (339,463) 342,607
Other Expense 80,584 227,336 (146,752)
----------------------------------------
Total Other (Expense) (115,085) (309,827) 194,742
Net Income (Loss) Before Bankruptcy
Administrative Expenses (499,210) (661,435) 162,225
Bankruptcy Administrative Expenses (69,398) (204,415) 135,017
----------------------------------------
Net Income (Loss) (568,608) (865,850) 297,242
----------------------------------------
----------------------------------------
</TABLE>
See accompanying notes to financial statement information.
<PAGE>
MEGA 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, 1999 DEC. 31. 1998 CHANGE
--------------- -------------- -------------
<S> <C> <C> <C>
Cash flows from operating activities:
Net loss ($568,608) ($865,850) $ 297,242
Adjustments to reconcile net loss to net cash (used in)
provided by operating activities:
Depreciation 69,377 67,459 1,918
Change in estmate of pre-petition construction claims 0 (400,000) 400,000
Write down of other long term assets and liabilities (61,000) 0 (61,000)
Write down of worker's compensation refund 0 192,660 (192,660)
(Gain) / Loss on sale of property and equipment (3,144) 339,463 (342,607)
Change in certain assets & liabilities:
(Increase) decrease in:
Receivables, net 404,262 162,002 242,260
Costs in excess of billings 57,373 366,927 (309,554)
Inventory, net 99,014 515,982 (416,968)
Prepaids & other assets 0 55,912 (55,912)
Increase (decrease) in:
Accounts payable 131,908 (346,031) 477,939
Accrued expenses (146,010) (535,151) 389,141
Other net changes in assets and liabilities 0 (3,127) 3,127
------------ ---------- ---------
Total adjustments 551,780 416,096 135,684
------------ ---------- ---------
Net cash provided by (used in) operating activities (16,828) (449,754) 432,926
Cash flows from investing activities :
Proceeds from sale of equipment 0 (134,053) 134,053
Additions to property and equipment 0 (571) 571
------------ ---------- ---------
Net cash provided by (used in) investing activities 0 (134,624) 134,624
Cash flows from financing and other activities:
Net proceeds (repayments) from revolver credit loan 64,735 366,454 (301,719)
Reduction of pre-petition liabilities (2,265) (32,196) 29,931
------------ ---------- ---------
Net cash provided by (used in) financing activities 62,470 334,258 (271,788)
------------ ---------- ---------
Net increase (decrease) in cash 45,642 (250,120) 295,762
CASH AT BEGINNING OF PERIOD 78,236 328,356 (250,120)
------------ ---------- ---------
CASH AT END OF PERIOD $ 123,878 $ 78,236 $ 45,642
------------ ---------- ---------
------------ ---------- ---------
</TABLE>
See accompanying notes to financial statement information.
<PAGE>
EXHIBIT 99.1
Omega Environmental, Inc.
Debtor in Possession Case # 97-06084
January 31, 1999 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 January 31, 1999, the Company's borrowings from BNY Financial Corporation
("BNYFC") were $22,599,213. On February 9, 1999, the Company successfully
negotiated with BNYFC for continuance of debtor-in-possession financing through
June 30, 1999.
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 believes that as a result of improvements in project
management and time charging practices no material write-offs in excess of the
normal allocated reserves will be required in the future.
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. The collection period for these
receivables frequently exceeds 180 days. Due to the significant amount of time
required to collect these receivables, management is continually 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 due to the lengthy collection time frame, 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 of the company's discontinued
construction business. 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.
Accounts receivable recorded on the Corporate balance sheet of $143,000
represents funds held in escrow at Debtor's Bankruptcy Counsel as a result of
the Petroleum Services Division (PSD) Houston branch asset sale in December
1998. The funds are held in escrow pending determination of the amount of the
tax lien asserted by Texas tax authorities.
Property and Equipment
Property and Equipment recorded on Petroleum Services Division's balance sheet
decreased $445,164 in December 1998 due to the sale of the Houston branch.
Loss on sale of Houston assets totaled $331,087 in December 1998.
Prepaid Assets
Prepaid assets recorded on Corporate's balance sheet decreased $240,744 in
December 1998 due in large part to a write-off of an expected worker's
compensation refund which the bankruptcy court allowed to be set off against
prepetition liabilities to the insurance carrier. The corresponding expense is
recorded in Other Expense on the income statement. The company has appealed
the bankruptcy court ruling.
Pre-Petition Construction Claims
Pre-Petition Construction Claims recorded on Discontinued Operation's balance
sheet decreased $404,000 in December 1998 due to a revision in the estimated
liability owed to the Company's surety.
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