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Previous: MANPOWER INC /WI/, 10-Q, 1999-05-17 |
Next: AVALON COMMUNITY SERVICES INC, 10QSB, 1999-05-17 |
<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) May 13, 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
(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 May 13, 1999, the Registrant filed unaudited financial statement
information as of and for each of the months ended February 28, 1999 and
January 31, 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 February 28, 1999 and January 31, 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: May 13, 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)
Feb. 28, 1999 Jan. 31, 1999
ESD ESD Change
------------------------------------------------
<S> <C> <C> <C>
CURRENT ASSETS
Cash 5,037 42,853 (37,816)
Restricted cash held in escrow 2,740,747 2,738,168 2,579
Accounts receivable
A/R--trade 11,875,155 11,931,835 (56,680)
A/R--interco --
A/R--employees 3,420 3,121 299
A/R--supplemental 1,367,675 1,367,675 --
A/R--misc. 12,078 12,078 --
Allowance for doubtful accounts (1,812,085) (1,841,230) 29,145
------------------------------------------------
Accounts receivable, net 11,446,243 11,473,479 (27,236)
------------------------------------------------
Costs and earnings in excess of billings 5,189,003 5,385,141 (196,138)
Prepaid expenses 53,354 6,201 47,153
Inventory --
Inventory reserve --
------------------------------------------------
Inventory, net -- -- --
------------------------------------------------
Other current assets --
------------------------------------------------
TOTAL CURRENT ASSETS 19,434,384 19,645,842 (211,458)
------------------------------------------------
PROPERTY AND EQUIPMENT
Field equipment 2,355,928 2,352,810 3,118
Automotive equipment 1,124,549 1,124,549 --
Office furniture and equipment 973,265 967,334 5,931
Leasehold improvements 107,729 107,729 --
------------------------------------------------
TOTAL PROPERTY & EQUIP., AT COST 4,561,471 4,552,422 9,049
Accum. Depreciation (3,455,880) (3,409,023) (46,857)
------------------------------------------------
TOTAL PROPERTY & EQUIP., NET 1,105,591 1,143,399 (37,808)
------------------------------------------------
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 221,324 223,609 (2,285)
Investment & Intercompany in Subsidiaires --
------------------------------------------------
TOTAL ASSETS 20,763,725 21,015,276 (251,551)
================================================
POST PETITION CURRENT LIABILITIES
Accounts payable 452,559 653,700 (201,141)
Line of Credit
Accrued expenses, excluding bankruptcy costs 584,791 604,200 (19,409)
Accrued bankruptcy costs
Estimated claims against cash held in escrow 2,579,250 2,578,438 812
Intercompany - BNYFC 7,832,953 7,765,310 67,643
Intercompany payables --
------------------------------------------------
TOTAL POST PETITION CURRENT LIABILITIES 11,449,553 11,601,648 (152,095)
Intercompany Notes Payable 9,005,048 8,741,768 263,280
Pre Petition Liabilities 1,323,469 1,620,033 (296,564)
Pre Petition Estimated Construction Claims
------------------------------------------------
TOTAL LIABILITIES 21,778,070 21,963,449 (185,379)
------------------------------------------------
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 (4,550,516) (4,484,344) (66,172)
------------------------------------------------
TOTAL SHAREHOLDERS' EQUITY (1,014,345) (948,173) (66,172)
------------------------------------------------
TOTAL LIABILITIES & SHAREHOLDERS' EQUITY 20,763,725 21,015,276 (251,551)
================================================
<CAPTION>
(unaudited) (unaudited)
Feb. 28, 1999 Jan. 31, 1999
PSD PSD Change
------------------------------------------------
<S> <C> <C> <C>
CURRENT ASSETS
Cash 21,319 37,536 (16,217)
Restricted cash held in escrow --
Accounts receivable
A/R--trade 147,145 312,556 (165,411)
A/R--interco -- -- --
A/R--employees 1,231 2,200 (969)
A/R--supplemental --
A/R--misc. 291,514 -- 291,514
Allowance for doubtful accounts (42,748) (48,902) 6,154
------------------------------------------------
Accounts receivable, net 397,142 265,854 131,288
------------------------------------------------
Costs and earnings in excess of billings --
Prepaid expenses 35,431 49,841 (14,410)
Inventory -- 679,663 (679,663)
Inventory reserve -- (173,950) 173,950
------------------------------------------------
Inventory, net -- 505,713 (505,713)
------------------------------------------------
Other current assets --
------------------------------------------------
TOTAL CURRENT ASSETS 453,892 858,944 (405,052)
------------------------------------------------
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) 114,758
------------------------------------------------
TOTAL PROPERTY & EQUIP., NET -- 101,381 (101,381)
------------------------------------------------
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 453,892 960,325 (506,433)
================================================
POST PETITION CURRENT LIABILITIES
Accounts payable 19,891 26,031 (6,140)
Line of Credit --
Accrued expenses, excluding bankruptcy costs 57,016 149,087 (92,071)
Accrued bankruptcy costs --
Estimated claims against cash held in escrow --
Intercompany - BNYFC 7,806,377 7,756,672 49,705
Intercompany payables -- -- --
------------------------------------------------
TOTAL POST PETITION CURRENT LIABILITIES 7,883,284 7,931,790 (48,506)
Intercompany Notes Payable --
Pre Petition Liabilities 949,872 949,872 --
Pre Petition Estimated Construction Claims --
------------------------------------------------
TOTAL LIABILITIES 8,833,156 8,881,662 (48,506)
------------------------------------------------
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 (7,477,509) (7,019,582) (457,927)
------------------------------------------------
TOTAL SHAREHOLDERS' EQUITY (8,379,264) (7,921,337) (457,927)
------------------------------------------------
TOTAL LIABILITIES & SHAREHOLDERS' EQUITY 453,892 960,325 (506,433)
================================================
</TABLE>
<PAGE>
Omega Environmental, Inc.
Debtor In Posession Case #97-06084
Comparative Balance Sheet Information
<TABLE>
<CAPTION>
(unaudited) (unaudited)
Feb. 28, 1999 Jan. 31, 1999
Corporate Corporate Change
------------------------------------------------
<S> <C> <C> <C>
CURRENT ASSETS
Cash 39,806 43,489 (3,683)
Restricted cash held in escrow --
Accounts receivable
A/R--trade -- -- --
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) (1,076,094) --
------------------------------------------------
Accounts receivable, net 143,000 143,000 --
------------------------------------------------
Costs and earnings in excess of billings --
Prepaid expenses 159,698 77,062 82,636
Inventory --
Inventory reserve --
------------------------------------------------
Inventory, net -- -- --
------------------------------------------------
Other current assets --
------------------------------------------------
TOTAL CURRENT ASSETS 342,504 263,551 78,953
------------------------------------------------
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 (33,257) (32,950) (307)
------------------------------------------------
TOTAL PROPERTY & EQUIP., NET 7,793 8,100 (307)
------------------------------------------------
Long-term accounts receivable - Other (Texas) -- -- --
Reserve for Long-term accounts receivable --
------------------------------------------------
Long-term accounts receviable - Other (Texas), net -- -- --
Other Assets 41,622 65,425 (23,802)
Investment & Intercompany in Subsidiaires 74,375,431 74,375,431 --
------------------------------------------------
TOTAL ASSETS 74,767,350 74,712,506 54,844
================================================
POST PETITION CURRENT LIABILITIES
Accounts payable 68,243 79,074 (10,831)
Line of Credit 23,278,363 22,599,213 679,150
Accrued expenses, excluding bankruptcy costs 42,905 96,160 (53,255)
Accrued bankruptcy costs 1,487,967 1,749,267 (261,300)
Estimated claims against cash held in escrow --
Intercompany - BNYFC (18,377,094) (18,261,766) (115,328)
Intercompany payables -- -- --
------------------------------------------------
TOTAL POST PETITION CURRENT LIABILITIES 6,500,384 6,261,948 238,436
Intercompany Notes Payable --
Pre Petition Liabilities 2,637,103 2,637,103 --
Pre Petition Estimated Construction Claims --
------------------------------------------------
TOTAL LIABILITIES 9,137,487 8,899,051 238,436
------------------------------------------------
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 (11,916,949) (11,733,357) (183,592)
------------------------------------------------
TOTAL SHAREHOLDERS' EQUITY 65,629,863 65,813,455 (183,592)
------------------------------------------------
TOTAL LIABILITIES & SHAREHOLDERS' EQUITY 74,767,350 74,712,506 54,844
================================================
<CAPTION>
(unaudited) (unaudited)
Feb. 28, 1999 Jan. 31, 1999
Continuing Continuing
Operations Operations Change
------------------------------------------------
<S> <C> <C> <C>
CURRENT ASSETS
Cash 66,162 123,878 (57,716)
Restricted cash held in escrow 2,740,747 2,738,168 2,579
Accounts receivable
A/R--trade 12,022,300 12,244,391 (222,091)
A/R--interco -- -- --
A/R--employees 4,651 5,321 (670)
A/R--supplemental 1,367,675 1,367,675 --
A/R--misc. 1,522,686 1,231,172 291,514
Allowance for doubtful accounts (2,930,927) (2,966,226) 35,299
------------------------------------------------
Accounts receivable, net 11,986,385 11,882,333 104,052
------------------------------------------------
Costs and earnings in excess of billings 5,189,003 5,385,141 (196,138)
Prepaid expenses 248,483 133,104 115,379
Inventory -- 679,663 (679,663)
Inventory reserve -- (173,950) 173,950
------------------------------------------------
Inventory, net -- 505,713 (505,713)
------------------------------------------------
Other current assets -- -- --
------------------------------------------------
TOTAL CURRENT ASSETS 20,230,780 20,768,337 (537,557)
------------------------------------------------
PROPERTY AND EQUIPMENT
Field equipment 2,355,928 2,519,390 (163,462)
Automotive equipment 1,124,549 1,135,420 (10,871)
Office furniture and equipment 1,014,315 1,016,177 (1,862)
Leasehold improvements 107,729 138,624 (30,895)
------------------------------------------------
TOTAL PROPERTY & EQUIP., AT COST 4,602,521 4,809,611 (207,090)
Accum. Depreciation (3,489,137) (3,556,731) 67,594
------------------------------------------------
TOTAL PROPERTY & EQUIP., NET 1,113,384 1,252,880 (139,496)
------------------------------------------------
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 262,946 289,034 (26,088)
Investment & Intercompany in Subsidiaires 74,375,431 74,375,431 --
------------------------------------------------
TOTAL ASSETS 95,984,967 96,688,107 (703,141)
================================================
POST PETITION CURRENT LIABILITIES
Accounts payable 540,693 758,805 (218,112)
Line of Credit 23,278,363 22,599,213 679,150
Accrued expenses, excluding bankruptcy costs 684,712 849,447 (164,735)
Accrued bankruptcy costs 1,487,967 1,749,267 (261,300)
Estimated claims against cash held in escrow 2,579,250 2,578,438 812
Intercompany - BNYFC (2,737,764) (2,739,784) 2,020
Intercompany payables -- -- --
------------------------------------------------
TOTAL POST PETITION CURRENT LIABILITIES 25,833,221 25,795,386 37,835
Intercompany Notes Payable 9,005,048 8,741,768 263,280
Pre Petition Liabilities 4,910,444 5,207,008 (296,565)
Pre Petition Estimated Construction Claims -- -- --
------------------------------------------------
TOTAL LIABILITIES 39,748,713 39,744,162 4,550
------------------------------------------------
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 (23,944,974) (23,237,283) (707,691)
------------------------------------------------
TOTAL SHAREHOLDERS' EQUITY 56,236,254 56,943,945 (707,691)
------------------------------------------------
TOTAL LIABILITIES & SHAREHOLDERS' EQUITY 95,984,967 96,688,107 (703,141)
================================================
</TABLE>
<PAGE>
Omega Environmental, Inc.
Debtor In Posession Case #97-06084
Comparative Balance Sheet Information
<TABLE>
<CAPTION>
(unaudited) (unaudited)
Feb. 28, 1999 Jan. 31, 1999
Discontinued Discontinued
Operations Operations Change
------------------------------------------------
<S> <C> <C> <C>
CURRENT ASSETS
Cash -- -- --
Restricted cash held in escrow --
Accounts receivable
A/R--trade 4,771,229 4,918,797 (147,568)
A/R--interco -- -- --
A/R--employees --
A/R--supplemental --
A/R--misc. 33,806 33,806 --
Allowance for doubtful accounts (3,258,663) (3,263,962) 5,299
------------------------------------------------
Accounts receivable, net 1,546,372 1,688,641 (142,269)
------------------------------------------------
Costs and earnings in excess of billings --
Prepaid expenses --
Inventory --
Inventory reserve --
------------------------------------------------
Inventory, net -- -- --
------------------------------------------------
Other current assets 10,000 10,000 --
------------------------------------------------
TOTAL CURRENT ASSETS 1,556,372 1,698,641 (142,269)
------------------------------------------------
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 1,557,372 1,699,641 (142,269)
================================================
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 2,737,764 2,739,784 (2,020)
Intercompany payables -- -- --
------------------------------------------------
TOTAL POST PETITION CURRENT LIABILITIES 2,737,764 2,739,784 (2,020)
Intercompany Notes Payable 2,272,176 2,535,455 (263,279)
Pre Petition Liabilities 11,077,632 10,814,353 263,279
Pre Petition Estimated Construction Claims 2,000,000 2,000,000 --
------------------------------------------------
TOTAL LIABILITIES 18,087,572 18,089,592 (2,020)
------------------------------------------------
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 (9,619,808) (9,479,559) (140,249)
------------------------------------------------
TOTAL SHAREHOLDERS' EQUITY (16,530,200) (16,389,951) (140,249)
------------------------------------------------
TOTAL LIABILITIES & SHAREHOLDERS' EQUITY 1,557,372 1,699,641 (142,269)
================================================
<CAPTION>
(unaudited) (unaudited)
Feb. 28, 1999 Jan. 31, 1999
Combined Combined
Final Final Change
------------------------------------------------
<S> <C> <C> <C>
CURRENT ASSETS
Cash 66,162 123,878 (57,716)
Restricted cash held in escrow 2,740,747 2,738,168 2,579
Accounts receivable
A/R--trade 16,793,529 17,163,188 (369,659)
A/R--interco -- -- --
A/R--employees 4,651 5,321 (670)
A/R--supplemental 1,367,675 1,367,675 --
A/R--misc. 1,556,492 1,264,978 291,514
Allowance for doubtful accounts (6,189,590) (6,230,188) 40,598
------------------------------------------------
Accounts receivable, net 13,532,757 13,570,974 (38,217)
------------------------------------------------
Costs and earnings in excess of billings 5,189,003 5,385,141 (196,138)
Prepaid expenses 248,483 133,104 115,379
Inventory -- 679,663 (679,663)
Inventory reserve -- (173,950) 173,950
------------------------------------------------
Inventory, net -- 505,713 (505,713)
------------------------------------------------
Other current assets 10,000 10,000 --
------------------------------------------------
TOTAL CURRENT ASSETS 21,787,152 22,466,978 (679,826)
------------------------------------------------
PROPERTY AND EQUIPMENT
Field equipment 2,356,928 2,520,390 (163,462)
Automotive equipment 1,124,549 1,135,420 (10,871)
Office furniture and equipment 1,014,315 1,016,177 (1,862)
Leasehold improvements 107,729 138,624 (30,895)
------------------------------------------------
TOTAL PROPERTY & EQUIP., AT COST 4,603,521 4,810,611 (207,090)
Accum. Depreciation (3,489,137) (3,556,731) 67,594
------------------------------------------------
TOTAL PROPERTY & EQUIP., NET 1,114,384 1,253,880 (139,496)
------------------------------------------------
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 262,946 289,034 (26,088)
Investment & Intercompany in Subsidiaires -- -- --
------------------------------------------------
TOTAL ASSETS 23,166,908 24,012,318 (845,410)
================================================
POST PETITION CURRENT LIABILITIES
Accounts payable 540,693 758,805 (218,112)
Line of Credit 23,278,363 22,599,213 679,150
Accrued expenses, excluding bankruptcy costs 684,712 849,447 (164,735)
Accrued bankruptcy costs 1,487,967 1,749,267 (261,300)
Estimated claims against cash held in escrow 2,579,250 2,578,438 812
Intercompany - BNYFC -- -- --
Intercompany payables -- -- --
------------------------------------------------
TOTAL POST PETITION CURRENT LIABILITIES 28,570,985 28,535,170 35,815
Intercompany Notes Payable -- -- --
Pre Petition Liabilities 15,988,076 16,021,361 (33,285)
Pre Petition Estimated Construction Claims 2,000,000 2,000,000 --
------------------------------------------------
TOTAL LIABILITIES 46,559,061 46,556,531 2,530
------------------------------------------------
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 (33,564,782) (32,716,842) (847,940)
------------------------------------------------
TOTAL SHAREHOLDERS' EQUITY (23,392,153) (22,544,213) (847,940)
------------------------------------------------
TOTAL LIABILITIES & SHAREHOLDERS' EQUITY 23,166,908 24,012,318 (845,410)
================================================
</TABLE>
<PAGE>
Omega Environmental, Inc.
Debtor In Possession Case #97-06084
Comparative Statement of Operations Information
<TABLE>
<CAPTION>
(unaudited) (unaudited) (unaudited) (unaudited)
Month Ended Month Ended Month Ended Month Ended
Feb. 28, 1999 Jan. 31, 1999 Feb. 28, 1999 Jan. 31, 1999
ESD ESD Change PSD PSD Change
-------------------------------------------- --------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
Sales 1,227,736 1,305,830 (78,094) 63,042 73,880 (10,838)
Cost of Sales 868,705 999,989 (131,284) 76,216 95,627 (19,411)
-------------------------------------------- --------------------------------------------
Gross Profit 359,031 305,841 53,190 (13,174) (21,747) 8,573
Selling, General, and Administrative 364,424 520,506 (156,082) 38,393 52,629 (14,236)
-------------------------------------------- --------------------------------------------
Income (Loss) From Operations (5,393) (214,665) 209,272 (51,567) (74,376) 22,809
Other Income(Expense):
I/C Interest Income (Expense) (63,792) (70,272) 6,480 (63,465) (70,334) 6,869
Interest Expense (44) (126) 82 --
Interest Income -- -- -- --
Gain (loss) on Asset Disposition 3,057 -- 3,057 (342,895) 3,144 (346,039)
Other Expense -- -- -- -- -- --
-------------------------------------------- --------------------------------------------
Total Other (Expense) (60,779) (70,398) 9,619 (406,360) (67,190) (339,170)
Net Income (Loss) Before Bankruptcy
Administrative Expenses (66,172) (285,063) 218,891 (457,927) (141,566) (316,361)
Bankruptcy Administrative Expenses --
-------------------------------------------- --------------------------------------------
Net Income (Loss) (66,172) (285,063) 218,891 (457,927) (141,566) (316,361)
============================================ ============================================
</TABLE>
See accompanying notes to financial statement information
<PAGE>
Omega Environmental, Inc.
Debtor In Possession Case #97-06084
Comparative Statement of Operations Information
<TABLE>
<CAPTION>
(unaudited) (unaudited)
(unaudited) (unaudited) Month Ended Month Ended
Month Ended Month Ended Feb. 28, 1999 Jan. 31, 1999
Feb. 28, 1999 Jan. 31, 1999 Continuing Continuing
Corporate Corporate Change Operations Operations Change
------------------------------------------- ---------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
Sales -- -- -- 1,290,778 1,379,710 (88,932)
Cost of Sales -- -- -- 944,921 1,095,616 (150,695)
------------------------------------------- ---------------------------------------------
Gross Profit -- -- -- 345,857 284,094 61,763
Selling, General, and Administrative 81,413 95,084 (13,671) 484,230 668,219 (183,989)
------------------------------------------- ---------------------------------------------
Income (Loss) From Operations (81,413) (95,084) 13,671 (138,373) (384,125) 245,752
Other Income(Expense):
I/C Interest Income (Expense) 127,257 140,606 (13,349) 0 0 0
Interest Expense (184,401) (198,687) 14,286 (184,445) (198,813) 14,368
Interest Income -- 0 0 0
Gain (loss) on Asset Disposition -- -- -- (339,838) 3,144 (342,982)
Other Expense 64,877 150,000 (85,123) 64,877 150,000 (85,123)
------------------------------------------- ---------------------------------------------
Total Other (Expense) 7,733 91,919 (84,186) (459,406) (45,669) (413,737)
Net Income (Loss) Before Bankruptcy
Administrative Expenses (73,680) (3,165) (70,515) (597,779) (429,794) (167,985)
Bankruptcy Administrative Expenses (109,912) (69,398) (40,514) (109,912) (69,398) (40,514)
------------------------------------------- ---------------------------------------------
Net Income (Loss) (183,592) (72,563) (111,029) (707,691) (499,192) (208,499)
=========================================== =============================================
</TABLE>
See accompanying notes to financial statement information
<PAGE>
Omega Environmental, Inc.
Debtor In Possession Case #97-06084
Comparative Statement of Operations Information
<TABLE>
<CAPTION>
(unaudited) (unaudited) (unaudited) (unaudited)
Month Ended Month Ended Month Ended Month Ended
Feb. 28, 1999 Jan. 31, 1999 Feb. 28, 1999 Jan. 31, 1999
Discontinued Discontinued Combined Combined
Operations Operations Change Final Final Change
------------------------------------------- --------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
Sales 0 1,290,778 1,379,710 (88,932)
Cost of Sales 0 944,921 1,095,616 (150,695)
------------------------------------------- --------------------------------------------
Gross Profit 0 0 0 345,857 284,094 61,763
Selling, General, and Administrative 0 484,230 668,219 (183,989)
------------------------------------------- --------------------------------------------
Income (Loss) From Operations 0 0 0 (138,373) (384,125) 245,752
Other Income(Expense):
I/C Interest Income (Expense) 0 0 0 0
Interest Expense 0 (184,445) (198,813) 14,368
Interest Income 0 0 0 0
Gain (loss) on Asset Disposition 0 (339,838) 3,144 (342,982)
Other Expense (140,249) (69,416) (70,833) (75,372) 80,584 (155,956)
------------------------------------------- --------------------------------------------
Total Other (Expense) (140,249) (69,416) (70,833) (599,655) (115,085) (484,570)
Net Income (Loss) Before Bankruptcy
Administrative Expenses (140,249) (69,416) (70,833) (738,028) (499,210) (238,818)
Bankruptcy Administrative Expenses 0 (109,912) (69,398) (40,514)
------------------------------------------- --------------------------------------------
Net Income (Loss) (140,249) (69,416) (70,833) (847,940) (568,608) (279,332)
=========================================== ============================================
</TABLE>
See accompanying notes to financial statement information
<PAGE>
Omega Environmental, Inc.
Debtor in Possession Case # 97 - 06084
Comparative Combined Statement of Cash Flows Information
<TABLE>
<CAPTION>
(unaudited) (unaudited)
Month Ended Month Ended
Feb. 28, 1999 Jan. 31, 1999 Change
-------------- -------------- --------------
<S> <C> <C> <C>
Cash flows from operating activities:
Net loss $ (847,940) $ (568,608) $ (279,332)
Adjustments to reconcile net loss to net cash
(used in) provided by operating activities:
Depreciation 63,331 69,377 (6,046)
Change in estmate of pre-petition construction claims 0 0 0
Write down of other long term assets and liabilities 0 (61,000) 61,000
Write down of worker's compensation refund (239,286) 0 (239,286)
(Gain) / Loss on sale of property and equipment 339,838 (3,144) 342,982
Change in certain assets & liabilities:
(Increase) decrease in:
Receivables, net 38,217 404,262 (366,044)
Costs in excess of billings 196,138 57,373 138,765
Inventory, net 390,334 99,014 291,320
Prepaids & other assets 0 0 0
Increase (decrease) in:
Accounts payable (218,112) 131,908 (350,020)
Accrued expenses (426,035) (146,010) (280,025)
Other net changes in assets and liabilities 24,321 0 24,321
-------------- -------------- --------------
Total adjustments 168,746 551,780 (383,033)
-------------- -------------- --------------
Net cash provided by (used in) operating activities (679,194) (16,828) (662,365)
Cash flows from investing activities :
Proceeds from sale of equipment 0 0 0
Additions to property and equipment (24,387) 0 (24,387)
-------------- -------------- --------------
Net cash provided by (used in) investing activities (24,387) 0 (24,387)
Cash flows from financing and other activities:
Net proceeds (repayments) from revolver credit loan 679,150 64,735 614,415
Reduction of pre-petition liabilities (33,285) (2,265) (31,020)
-------------- -------------- --------------
Net cash provided by (used in) financing activities 645,865 62,470 583,395
-------------- -------------- --------------
Net increase (decrease) in cash (57,716) 45,642 (103,357)
Cash at beginning of period 123,878 78,236 45,642
-------------- -------------- --------------
Cash at end of period $ 66,162 $ 123,878 ($ 57,715)
============== ============== ==============
</TABLE>
<PAGE>
EXHIBIT 99.1
Omega Environmental, Inc.
Debtor in Possession Case # 97-06084
February 28, 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 February 28, 1999, the Company's borrowings from BNY Financial Corporation
("BNYFC") were $23,278,363. 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. In February 1999, the all receivables from the Fedco
Branch were written off except for an account to be collected for $26,500. The
Fedco write off totaled $140,000. 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.
Miscellaneous accounts receivable recorded on the Petroleum Services Division's
balance sheet included $291,000 receivable from the sale of the Dallas Office.
The funds were collected in early March 1999.
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.
Inventory
Inventory recorded on Petroleum Services Division's balance sheet decreased
$505,713 in February 1999 due to the sale of the Dallas branch. Loss on sale of
Dallas branch's assets totaled $342,920.
Property and Equipment
Property and Equipment recorded on Petroleum Services Division's balance sheet
decreased $101,381 in February 1999 due to the sale of the Houston branch. Loss
on sale of Dallas branch's assets totaled $342,920.
Pre Petition Liabilities and Notes Payable
In February 1999, certain discontinued branch operations were transferred out of
the Environmental Services Division's accounting records. The total for this
transfer to Discontinued Operations section was $263,000 and had no operating
loss/gain impact on the financial statements.
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