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Previous: INFORMATION MANAGEMENT ASSOCIATES INC, SC 13G, 1999-08-20 |
Next: TAX FREE FUND FOR UTAH, 24F-2NT, 1999-08-20 |
<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) August 18, 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
INCORPORATION OR ORGANIZATION) IDENTIFICATION NO.)
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
(REGISTRANT'S 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 August 18, 1999, the Registrant filed unaudited financial
statement information as of and for each of the months ended May
31, 1999 and April 30, 1999 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, 1999 and
April 30, 1999 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: August 18, 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)
MAY 31, 1999 APRIL 30, 1999
ESD ESD CHANGE
-------------------------------------------------------
<S> <C> <C> <C>
CURRENT ASSETS
Cash - 69,552 (69,552)
Restricted cash held in escrow 2,749,612 2,747,597 2,015
Accounts receivable
A/R--trade 10,824,022 11,300,914 (476,892)
A/R--interco - - -
A/R--employees 5,850 4,910 940
A/R--supplemental 1,367,675 1,367,675 -
A/R--misc. 11,005 12,078 (1,073)
Allowance for doubtful accounts (1,900,887) (1,927,559) 26,672
-------------------------------------------------------
Accounts receivable, net 10,307,665 10,758,018 (450,353)
-------------------------------------------------------
Costs and earnings in excess of billings 5,384,009 5,641,063 (257,054)
Prepaid expenses 70,418 86,642 (16,224)
Inventory -
Inventory reserve -
-------------------------------------------------------
Inventory, net - - -
-------------------------------------------------------
Other current assets -
-------------------------------------------------------
TOTAL CURRENT ASSETS 18,511,704 19,302,872 (791,168)
-------------------------------------------------------
PROPERTY AND EQUIPMENT
Field equipment 2,497,448 2,409,535 87,913
Automotive equipment 1,116,385 1,122,871 (6,486)
Office furniture and equipment 976,124 967,005 9,119
Leasehold improvements 107,729 107,729 -
-------------------------------------------------------
TOTAL PROPERTY & EQUIP., AT COST 4,697,686 4,607,140 90,546
Accum. Depreciation (3,607,596) (3,550,867) (56,729)
-------------------------------------------------------
TOTAL PROPERTY & EQUIP., NET 1,090,090 1,056,273 33,817
-------------------------------------------------------
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 127,449 112,547 14,902
Investment & Intercompany in Subsidiaires -
-------------------------------------------------------
TOTAL ASSETS 19,731,669 20,474,118 (742,449)
-------------------------------------------------------
-------------------------------------------------------
POST PETITION CURRENT LIABILITIES
Accounts payable 575,103 671,160 (96,057)
Line of Credit
Accrued expenses, excluding bankruptcy costs 707,204 682,439 24,765
Accrued bankruptcy costs
Estimated claims against cash held in escrow 2,588,114 2,586,099 2,015
Intercompany - BNYFC 6,976,147 7,649,897 (673,750)
Intercompany payables -
-------------------------------------------------------
TOTAL POST PETITION CURRENT LIABILITIES 10,846,568 11,589,595 (743,027)
Intercompany Notes Payable 9,202,397 9,202,397 -
Pre Petition Liabilities 969,759 969,759 -
Pre Petition Estimated Construction Claims
-------------------------------------------------------
TOTAL LIABILITIES 21,018,724 21,761,751 (743,027)
-------------------------------------------------------
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 (4,823,226) (4,823,804) 578
-------------------------------------------------------
TOTAL SHAREHOLDERS' EQUITY (1,287,055) (1,287,633) 578
-------------------------------------------------------
TOTAL LIABILITIES & SHAREHOLDERS' EQUITY 19,731,669 20,474,118 (742,449)
-------------------------------------------------------
-------------------------------------------------------
<CAPTION>
(UNAUDITED) (UNAUDITED)
MAY 31, 1999 APRIL 30, 1999
CORPORATE CORPORATE CHANGE
-------------------------------------------------------
<S> <C> <C> <C>
CURRENT ASSETS
Cash 28,488 76,359 (47,871)
Restricted cash held in escrow -
Accounts receivable
A/R--trade - - -
A/R--interco - - -
A/R--employees - - -
A/R--supplemental -
A/R--misc. 1,274,094 1,224,094 50,000
Allowance for doubtful accounts (1,076,094) (1,076,094) -
-------------------------------------------------------
Accounts receivable, net 198,000 148,000 50,000
-------------------------------------------------------
Costs and earnings in excess of billings -
Prepaid expenses 310,176 88,561 221,615
Inventory - - -
Inventory reserve - - -
-------------------------------------------------------
Inventory, net - - -
-------------------------------------------------------
Other current assets -
-------------------------------------------------------
TOTAL CURRENT ASSETS 536,664 312,920 223,744
-------------------------------------------------------
PROPERTY AND EQUIPMENT
Field equipment - - -
Automotive equipment - - -
Office furniture and equipment 34,872 34,872 -
Leasehold improvements - - -
-------------------------------------------------------
TOTAL PROPERTY & EQUIP., AT COST 34,872 34,872 -
Accum. Depreciation (33,779) (33,626) (153)
-------------------------------------------------------
TOTAL PROPERTY & EQUIP., NET 1,093 1,246 (153)
-------------------------------------------------------
Long-term accounts receivable - Other (Texas) - - -
Reserve for Long-term accounts receivable -
-------------------------------------------------------
Long-term accounts receviable - Other (Texas), net - - -
Other Assets 41,622 41,622 -
Investment & Intercompany in Subsidiaires 74,375,431 74,375,431 -
-------------------------------------------------------
TOTAL ASSETS 74,954,810 74,731,219 223,591
-------------------------------------------------------
-------------------------------------------------------
POST PETITION CURRENT LIABILITIES
Accounts payable 28,663 36,077 (7,414)
Line of Credit 23,547,852 23,470,217 77,635
Accrued expenses, excluding bankruptcy costs 12,306 23,149 (10,843)
Accrued bankruptcy costs 996,926 1,326,004 (329,078)
Estimated claims against cash held in escrow - - -
Intercompany - BNYFC (17,196,722) (17,973,020) 776,298
Intercompany payables - - -
-------------------------------------------------------
TOTAL POST PETITION CURRENT LIABILITIES 7,389,025 6,882,427 506,598
Intercompany Notes Payable -
Pre Petition Liabilities 2,637,103 2,637,103 -
Pre Petition Estimated Construction Claims -
-------------------------------------------------------
TOTAL LIABILITIES 10,026,128 9,519,530 506,598
-------------------------------------------------------
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 (12,618,130) (12,335,123) (283,007)
-------------------------------------------------------
TOTAL SHAREHOLDERS' EQUITY 64,928,682 65,211,689 (283,007)
-------------------------------------------------------
TOTAL LIABILITIES & SHAREHOLDERS' EQUITY 74,954,810 74,731,219 223,591
-------------------------------------------------------
-------------------------------------------------------
</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, 1999 APRIL 30, 1999
CONTINUING CONTINUING
OPERATIONS OPERATIONS CHANGE
---------------------------------------------------
<S> <C> <C> <C>
CURRENT ASSETS
Cash 28,488 145,911 (117,423)
Restricted cash held in escrow 2,749,612 2,747,597 2,015
Accounts receivable
A/R--trade 10,824,022 11,300,914 (476,892)
A/R--interco - - -
A/R--employees 5,850 4,910 940
A/R--supplemental 1,367,675 1,367,675 -
A/R--misc. 1,285,099 1,236,172 48,927
Allowance for doubtful accounts (2,976,981) (3,003,653) 26,672
---------------------------------------------------
Accounts receivable, net 10,505,665 10,906,018 (400,353)
---------------------------------------------------
Costs and earnings in excess of billings 5,384,009 5,641,063 (257,054)
Prepaid expenses 380,594 175,203 205,391
Inventory - - -
Inventory reserve - - -
---------------------------------------------------
Inventory, net - - -
---------------------------------------------------
Other current assets - - -
---------------------------------------------------
TOTAL CURRENT ASSETS 19,048,368 19,615,792 (567,424)
---------------------------------------------------
PROPERTY AND EQUIPMENT
Field equipment 2,497,448 2,409,535 87,913
Automotive equipment 1,116,385 1,122,871 (6,486)
Office furniture and equipment 1,010,996 1,001,877 9,119
Leasehold improvements 107,729 107,729 -
---------------------------------------------------
TOTAL PROPERTY & EQUIP., AT COST 4,732,558 4,642,012 90,546
Accum. Depreciation (3,641,375) (3,584,493) (56,882)
---------------------------------------------------
TOTAL PROPERTY & EQUIP., NET 1,091,183 1,057,519 33,664
---------------------------------------------------
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 169,071 154,169 14,902
Investment & Intercompany in Subsidiaires 74,375,431 74,375,431 -
---------------------------------------------------
TOTAL ASSETS 94,686,479 95,205,337 (518,858)
---------------------------------------------------
---------------------------------------------------
POST PETITION CURRENT LIABILITIES
Accounts payable 603,766 707,237 (103,471)
Line of Credit 23,547,852 23,470,217 77,635
Accrued expenses, excluding bankruptcy costs 719,510 705,588 13,922
Accrued bankruptcy costs 996,926 1,326,004 (329,078)
Estimated claims against cash held in escrow 2,588,114 2,586,099 2,015
Intercompany - BNYFC (10,220,575) (10,323,123) 102,548
Intercompany payables - - -
---------------------------------------------------
TOTAL POST PETITION CURRENT LIABILITIES 18,235,593 18,472,022 (236,429)
Intercompany Notes Payable 9,202,397 9,202,397 -
Pre Petition Liabilities 3,606,862 3,606,862 -
Pre Petition Estimated Construction Claims - - -
---------------------------------------------------
TOTAL LIABILITIES 31,044,852 31,281,281 (236,429)
---------------------------------------------------
SHAREHOLDERS' EQUITY
Common stock at par 121,289 121,289 -
Additional paid in capital 142,762,307 142,762,307 -
Treasury Stock A-P-I-C (562,506) (562,506) -
Retained earnings - prior (60,334,078) (60,334,078) -
Y-T-D net income pre petition (904,029) (904,029) -
Y-T-D net income post petition (17,441,356) (17,158,927) (282,429)
---------------------------------------------------
TOTAL SHAREHOLDERS' EQUITY 63,641,627 63,924,056 (282,429)
---------------------------------------------------
TOTAL LIABILITIES & SHAREHOLDERS' EQUITY 94,686,479 95,205,337 (518,858)
---------------------------------------------------
---------------------------------------------------
<CAPTION>
(UNAUDITED) (UNAUDITED)
MAY 31, 1999 APRIL 30, 1999
DISCONTINUED DISCONTINUED
OPERATIONS OPERATIONS CHANGE
---------------------------------------------------
<S> <C> <C> <C>
CURRENT ASSETS
Cash 52,927 12,109 40,818
Restricted cash held in escrow -
Accounts receivable
A/R--trade 3,815,152 3,864,152 (49,000)
A/R--interco - - -
A/R--employees -
A/R--supplemental -
A/R--misc. - 55,335 (55,335)
Allowance for doubtful accounts (2,915,738) (2,896,027) (19,711)
---------------------------------------------------
Accounts receivable, net 899,414 1,023,460 (124,046)
---------------------------------------------------
Costs and earnings in excess of billings -
Prepaid expenses 2,800 14,858 (12,058)
Inventory -
Inventory reserve -
---------------------------------------------------
Inventory, net - - -
---------------------------------------------------
Other current assets - 10,000 (10,000)
---------------------------------------------------
TOTAL CURRENT ASSETS 955,141 1,060,427 (105,286)
---------------------------------------------------
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 956,141 1,061,427 (105,286)
---------------------------------------------------
---------------------------------------------------
POST PETITION CURRENT LIABILITIES
Accounts payable 8,314 9,391 (1,077)
Line of Credit
Accrued expenses, excluding bankruptcy costs 9,579 9,579 -
Accrued bankruptcy costs
Estimated claims against cash held in escrow
Intercompany - BNYFC 10,220,575 10,323,123 (102,548)
Intercompany payables - - -
---------------------------------------------------
TOTAL POST PETITION CURRENT LIABILITIES 10,238,468 10,342,093 (103,625)
Intercompany Notes Payable 2,074,827 2,074,827 -
Pre Petition Liabilities 12,168,899 12,168,899 -
Pre Petition Estimated Construction Claims 2,000,000 2,000,000 -
---------------------------------------------------
TOTAL LIABILITIES 26,482,194 26,585,819 (103,625)
---------------------------------------------------
SHAREHOLDERS' EQUITY
Common stock at par 5,454,120 5,454,120 -
Additional paid in capital 39,347,007 39,347,007 -
Treasury Stock A-P-I-C - - -
Retained earnings - prior (51,671,367) (51,671,367) -
Y-T-D net income pre petition (941,907) (941,907) -
Y-T-D net income post petition (17,713,906) (17,712,245) (1,661)
---------------------------------------------------
TOTAL SHAREHOLDERS' EQUITY (25,526,053) (25,524,392) (1,661)
---------------------------------------------------
TOTAL LIABILITIES & SHAREHOLDERS' EQUITY 956,141 1,061,427 (105,286)
---------------------------------------------------
---------------------------------------------------
</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, 1999 APRIL 30, 1999
COMBINED COMBINED
FINAL FINAL CHANGE
--------------------------------------------------
<S> <C> <C> <C>
CURRENT ASSETS
Cash 81,415 158,020 (76,605)
Restricted cash held in escrow 2,749,612 2,747,597 2,015
Accounts receivable
A/R--trade 14,639,174 15,165,066 (525,892)
A/R--interco - - -
A/R--employees 5,850 4,910 940
A/R--supplemental 1,367,675 1,367,675 -
A/R--misc. 1,285,099 1,291,507 (6,408)
Allowance for doubtful accounts (5,892,719) (5,899,680) 6,961
--------------------------------------------------
Accounts receivable, net 11,405,079 11,929,478 (524,399)
--------------------------------------------------
Costs and earnings in excess of billings 5,384,009 5,641,063 (257,054)
Prepaid expenses 383,394 190,061 193,333
Inventory - - -
Inventory reserve - - -
--------------------------------------------------
Inventory, net - - -
--------------------------------------------------
Other current assets - 10,000 (10,000)
--------------------------------------------------
TOTAL CURRENT ASSETS 20,003,509 20,676,219 (672,710)
--------------------------------------------------
PROPERTY AND EQUIPMENT
Field equipment 2,498,448 2,410,535 87,913
Automotive equipment 1,116,385 1,122,871 (6,486)
Office furniture and equipment 1,010,996 1,001,877 9,119
Leasehold improvements 107,729 107,729 -
--------------------------------------------------
TOTAL PROPERTY & EQUIP., AT COST 4,733,558 4,643,012 90,546
Accum. Depreciation (3,641,375) (3,584,493) (56,882)
--------------------------------------------------
TOTAL PROPERTY & EQUIP., NET 1,092,183 1,058,519 33,664
--------------------------------------------------
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 169,071 154,169 14,902
Investment & Intercompany in Subsidiaires 0 0 -
--------------------------------------------------
TOTAL ASSETS 21,267,189 21,891,333 (624,144)
--------------------------------------------------
--------------------------------------------------
POST PETITION CURRENT LIABILITIES
Accounts payable 612,080 716,628 (104,548)
Line of Credit 23,547,852 23,470,217 77,635
Accrued expenses, excluding bankruptcy costs 729,089 715,167 13,922
Accrued bankruptcy costs 996,926 1,326,004 (329,078)
Estimated claims against cash held in escrow 2,588,114 2,586,099 2,015
Intercompany - BNYFC - - -
Intercompany payables - - -
--------------------------------------------------
TOTAL POST PETITION CURRENT LIABILITIES 28,474,061 28,814,115 (340,054)
Intercompany Notes Payable - - -
Pre Petition Liabilities 15,775,761 15,775,761 -
Pre Petition Estimated Construction Claims 2,000,000 2,000,000 -
--------------------------------------------------
TOTAL LIABILITIES 46,249,822 46,589,876 (340,054)
--------------------------------------------------
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 (35,155,262) (34,871,172) (284,090)
--------------------------------------------------
TOTAL SHAREHOLDERS' EQUITY (24,982,633) (24,698,543) (284,090)
--------------------------------------------------
TOTAL LIABILITIES & SHAREHOLDERS' EQUITY 21,267,189 21,891,333 (624,144)
--------------------------------------------------
--------------------------------------------------
</TABLE>
See accompanying notes to financial statement information
<PAGE>
OMEGA ENVIRONMENTAL, INC. EXHIBIT 99.1
DEBTOR IN POSSESSION CASE #97-06084
COMPARATIVE STATEMENT OF
OPERATIONS INFORMATION
<TABLE>
<CAPTION>
(UNAUDITED) (UNAUDITED)
MONTH ENDED MONTH ENDED
MAY 31, 1999 APRIL 30, 1999
ESD ESD CHANGE
-------------------------------------------------------
<S> <C> <C> <C>
Sales 1,321,330 1,740,172 (418,842)
Cost of Sales 906,237 1,270,036 (363,799)
-------------------------------------------------------
Gross Profit 415,093 470,136 (55,043)
Selling, General, and Administrative 351,794 441,497 (89,703)
-------------------------------------------------------
Income (Loss) From Operations 63,299 28,639 34,660
Other Income(Expense):
I/C Interest Income (Expense) (63,217) (65,814) 2,597
Interest Expense (4) - (4)
Interest Income - - -
Gain (loss) on Asset Disposition 500 1,125 (625)
Other Expense - (35) 35
-------------------------------------------------------
Total Other (Expense) (62,721) (64,724) 2,003
Net Income (Loss) Before Bankruptcy
Administrative Expenses 578 (36,085) 36,663
Bankruptcy Administrative Expenses
-------------------------------------------------------
Net Income (Loss) 578 (36,085) 36,663
-------------------------------------------------------
<CAPTION>
(UNAUDITED) (UNAUDITED)
MONTH ENDED MONTH ENDED
MAY 31, 1999 APRIL 30, 1999
CORPORATE CORPORATE CHANGE
----------------------------------------------------------
<S> <C> <C> <C>
Sales - - -
Cost of Sales - - -
----------------------------------------------------------
Gross Profit - - -
Selling, General, and Administrative 81,200 115,089 (33,889)
----------------------------------------------------------
Income (Loss) From Operations (81,200) (115,089) 33,889
Other Income(Expense):
I/C Interest Income (Expense) 63,217 132,116 (68,899)
Interest Expense (206,473) (198,386) (8,087)
Interest Income -
Gain (loss) on Asset Disposition - (5,691) 5,691
Other Expense 50,000 (341) 50,341
----------------------------------------------------------
Total Other (Expense) (93,256) (72,302) (20,954)
Net Income (Loss) Before Bankruptcy
Administrative Expenses (174,456) (187,391) 12,935
Bankruptcy Administrative Expenses (108,551) (117,579) 9,028
----------------------------------------------------------
Net Income (Loss) (283,007) (304,970) 21,963
----------------------------------------------------------
</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, 1999 APRIL 30, 1999
CONTINUING CONTINUING
OPERATIONS OPERATIONS CHANGE
-------------------------------------------------------
<S> <C> <C> <C>
Sales 1,321,330 1,740,172 (418,842)
Cost of Sales 906,237 1,270,036 (363,799)
-------------------------------------------------------
Gross Profit 415,093 470,136 (55,043)
Selling, General, and Administrative 432,994 556,586 (123,592)
-------------------------------------------------------
Income (Loss) From Operations (17,901) (86,450) 68,549
Other Income(Expense):
I/C Interest Income (Expense) 0 66,302 (66,302)
Interest Expense (206,477) (198,386) (8,091)
Interest Income 0 0 0
Gain (loss) on Asset Disposition 500 (4,566) 5,066
Other Expense 50,000 (376) 50,376
-------------------------------------------------------
Total Other (Expense) (155,977) (137,026) (18,951)
Net Income (Loss) Before Bankruptcy
Administrative Expenses (173,878) (223,476) 49,598
Bankruptcy Administrative Expenses (108,551) (117,579) 9,028
-------------------------------------------------------
Net Income (Loss) (282,429) (341,055) 58,626
-------------------------------------------------------
<CAPTION>
(UNAUDITED) (UNAUDITED)
MONTH ENDED MONTH ENDED
MAY 31, 1999 APRIL 30, 1999
DISCONTINUED DISCONTINUED
OPERATIONS OPERATIONS CHANGE
-------------------------------------------------------
<S> <C> <C> <C>
Sales 0 0 0
Cost of Sales 0 0 0
-------------------------------------------------------
Gross Profit 0 0 0
Selling, General, and Administrative 0 0 0
-------------------------------------------------------
Income (Loss) From Operations 0 0 0
Other Income(Expense):
I/C Interest Income (Expense) 0 (66,302) 66,302
Interest Expense 0 0 0
Interest Income 0
Gain (loss) on Asset Disposition - 0 0
Other Expense (1,661) (418,247) 416,586
-------------------------------------------------------
Total Other (Expense) (1,661) (484,549) 482,888
Net Income (Loss) Before Bankruptcy
Administrative Expenses (1,661) (484,549) 482,888
Bankruptcy Administrative Expenses 0 0 0
-------------------------------------------------------
Net Income (Loss) (1,661) (484,549) 482,888
-------------------------------------------------------
</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, 1999 APRIL 30, 1999
COMBINED COMBINED
FINAL FINAL CHANGE
------------------------------------------------------------
<S> <C> <C> <C>
Sales
Cost of Sales 1,321,330 1,740,172 (418,842)
906,237 1,270,036 (363,799)
------------------------------------------------------------
Gross Profit 415,093 470,136 (55,043)
Selling, General, and Administrative
432,994 556,586 (123,592)
------------------------------------------------------------
Income (Loss) From Operations
(17,901) (86,450) 68,549
Other Income(Expense):
I/C Interest Income (Expense) 0 0 0
Interest Expense (206,477) (198,386) (8,091)
Interest Income 0 0 0
Gain (loss) on Asset Disposition 500 (4,566) 5,066
Other Expense 48,339 (418,623) 466,962
Total Other (Expense) (157,638) (621,575) 463,937
------------------------------------------------------------
Net Income (Loss) Before Bankruptcy
Administrative Expenses (175,539) (708,025) 532,486
Bankruptcy Administrative Expenses (108,551) (117,579) 9,028
------------------------------------------------------------
Net Income (Loss) (284,090) (825,604) 541,514
------------------------------------------------------------
</TABLE>
See accompanying notes to financial statement information
<PAGE>
OMEGA ENVIRONMENTAL, INC. EXHIBIT 99.1
DEBTOR IN POSSESSION CASE # 97 - 06084
COMPARATIVE COMBINED STATEMENT OF CASH FLOWS INFORMATION
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(UNAUDITED) (UNAUDITED)
MONTH ENDED MONTH ENDED
MAY 31, 1999 APRIL 30, 1999 CHANGE
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Cash flows from operating activities:
Net loss ($284,090) ($825,604) $541,514
Adjustments to reconcile net loss to net cash (used in)
provided by operating activities:
Depreciation 56,881 59,714 (2,833)
Change in estmate of pre-petition construction claims 0 0 0
Write down of pre-petition liabilities 0 (55,954) 55,954
(Gain) / Loss on sale of property and equipment 0 4,566 (4,566)
Change in certain assets & liabilities:
(Increase) decrease in:
Receivables, net 524,399 884,210 (359,811)
Costs in excess of billings 257,054 (530,509) 787,563
Prepaids & other assets (183,333) 14,133 (197,466)
Increase (decrease) in:
Accounts payable (104,548) 156,007 (260,555)
Accrued expenses (315,156) 134,238 (449,394)
Billings in excess of costs 0 0 0
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Total adjustments 220,395 662,904 (442,509)
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Net cash provided by (used in) operating activities (63,695) (162,700) 99,005
Cash flows from investing activities :
Proceeds from sale of equipment 0 0 0
Additions to property and equipment (90,545) (64,184) (26,361)
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Net cash provided by (used in) investing activities (90,545) (64,184) (26,361)
Cash flows from financing and other activities:
Net proceeds (repayments) from revolver credit loan 77,635 168,496 (90,861)
Reduction of pre-petition liabilities 0 0 0
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Net cash provided by (used in) financing activities 77,635 168,496 (90,861)
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Net increase (decrease) in cash (76,605) (58,388) (18,217)
Cash at beginning of period 158,020 216,408 (58,388)
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Cash at end of period $81,415 $158,020 ($76,605)
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See accompanying notes to financial statement information
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EXHIBIT 99.1
Omega Environmental, Inc.
Debtor in Possession Case # 97-06084
May 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 May 31, 1999, the Company's borrowings from BNY Financial Corporation
("BNYFC") were $23,547,852. Omega successfully renegotiated continuance of
debtor-in-possession financing through October 31, 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.
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Accounts receivable recorded on the Discontinued Operation's balance sheet
primarily represent 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 $198,000
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
totaling $148,000. The funds are held in escrow pending determination of the
amount of the tax lien asserted by Texas tax authorities. The balance, $50,000,
represents an amount receivable from an insurance lawsuit settlement.
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