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Previous: OMEGA ENVIRONMENTAL INC, 8-K, 1999-06-28 |
Next: FRANKLIN STRATEGIC SERIES, 485APOS, 1999-06-28 |
<PAGE>
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of The Securities Exchange Act of 1934
Date of Report (Date of earliest event reported) June 24, 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 (I.R.S. EMPLOYER IDENTIFICATION NO.)
OF 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 June 24, 1999, the Registrant filed unaudited financial
statement information as of and for each of the months ended April
30, 1999 and March 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 April 30, 1999 and
March 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: June 24, 1999 /s/ Donald E. Condit
--------------------------------------
Donald E. Condit
Chief Financial Officer
<PAGE>
OMEGA ENVIRONMENTAL, INC.
DEBTOR IN POSSESSION CASE #97-06084
COMPARATIVE BALANCE SHEET INFORMATION
<TABLE>
<CAPTION>
(UNAUDITED) (UNAUDITED)
APRIL 30, 1999 MARCH 31, 1999
ESD ESD CHANGE
----------------------------------------------------------
CURRENT ASSETS
Cash 69,552 66,767 2,785
Restricted cash held in escrow 2,747,597 2,745,453 2,144
Accounts receivable
A/R--trade 11,300,914 11,540,162 (239,248)
A/R--interco -- 4,211 (4,211)
A/R--employees 4,910 4,658 252
A/R--supplemental 1,367,675 1,367,675 -
A/R--misc. 12,078 12,078 -
Allowance for doubtful accounts (1,927,559) (1,805,572) (121,987)
----------------------------------------------------------
Accounts receivable, net 10,758,018 11,123,212 (365,194)
----------------------------------------------------------
Costs and earnings in excess of billings 5,641,063 5,110,554 530,509
Prepaid expenses 86,642 40,430 46,212
Inventory -
Inventory reserve -
----------------------------------------------------------
Inventory, net - - -
----------------------------------------------------------
Other current assets -
----------------------------------------------------------
TOTAL CURRENT ASSETS 19,302,872 19,086,416 216,456
----------------------------------------------------------
PROPERTY AND EQUIPMENT
Field equipment 2,409,535 2,358,695 50,840
Automotive equipment 1,122,871 1,124,549 (1,678)
Office furniture and equipment 967,005 963,283 3,722
Leasehold improvements 107,729 107,729 -
-----------------------------------------------------------
TOTAL PROPERTY & EQUIP., AT COST 4,607,140 4,554,256 52,884
Accum. Depreciation (3,550,867) (3,503,840) (47,027)
-----------------------------------------------------------
TOTAL PROPERTY & EQUIP., NET 1,056,273 1,050,416 5,857
-----------------------------------------------------------
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 112,547 109,047 3,500
Investment & Intercompany in Subsidiaires -
-----------------------------------------------------------
TOTAL ASSETS 20,474,118 20,248,305 225,813
===========================================================
POST PETITION CURRENT LIABILITIES
Accounts payable 671,160 514,258 156,902
Line of Credit
Accrued expenses, excluding bankruptcy costs 682,439 613,838 68,601
Accrued bankruptcy costs
Estimated claims against cash held in escrow 2,586,099 2,583,956 2,143
Intercompany - BNYFC 7,649,897 7,615,645 34,252
Intercompany payables -
---------------------------------------------------------
TOTAL POST PETITION CURRENT LIABILITIES 11,589,595 11,327,697 261,898
Intercompany Notes Payable 9,202,397 9,202,397 -
Pre Petition Liabilities 969,759 969,759 -
Pre Petition Estimated Construction Claims
--------------------------------------------------------
TOTAL LIABILITIES 21,761,751 21,499,853 261,898
---------------------------------------------------------
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 (4,823,804) (4,787,719) (36,085)
---------------------------------------------------------
TOTAL SHAREHOLDERS' EQUITY (1,287,633) (1,251,548) (36,085)
---------------------------------------------------------
TOTAL LIABILITIES & SHAREHOLDERS' EQUITY 20,474,118 20,248,305 225,813
=========================================================
<CAPTION>
(UNAUDITED) (UNAUDITED)
APRIL 30, 1999 MARCH 31, 1999
CORPORATE CORPORATE CHANGE
---------------------------------------------------------
<S> <C> <C> <C>
CURRENT ASSETS
Cash 76,359 135,413 (59,054)
Restricted cash held in escrow -
Accounts receivable
A/R--trade - - -
A/R--interco - - -
A/R--employees - - -
A/R--supplemental - -
A/R--misc. 1,224,094 1,224,094 -
Allowance for doubtful accounts (1,076,094) (1,076,094) -
---------------------------------------------------------
Accounts receivable, net 148,000 148,000 -
----------------------------------------------------------
Costs and earnings in excess of billings -
Prepaid expenses 88,561 126,460 (37,899)
Inventory - -
Inventory reserve - -
----------------------------------------------------------
Inventory, net - - -
----------------------------------------------------------
Other current assets -
----------------------------------------------------------
TOTAL CURRENT ASSETS 312,920 409,873 (96,953)
-----------------------------------------------------------
PROPERTY AND EQUIPMENT
Field - -
Automotive equipment - -
Office furniture and equipment 34,872 41,050 (6,178)
Leasehold improvements - - -
----------------------------------------------------------
TOTAL PROPERTY & EQUIP., AT COST 34,872 41,050 (6,178)
Accum. Depreciation (33,626) (33,851) 225
----------------------------------------------------------
TOTAL PROPERTY & EQUIP., NET 1,246 7,199 (5,953)
-----------------------------------------------------------
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 74,731,219 74,834,125 (102,906)
============================================================
POST PETITION CURRENT LIABILITIES
Accounts payable 36,077 34,732 1,345
Line of Credit 23,470,217 23,301,721 168,496
Accrued expenses, excluding bankruptcy costs 23,149 26,497 (3,348)
Accrued bankruptcy costs 1,326,004 1,226,004 100,000
Estimated claims against cash held in escrow - -
Intercompany - BNYFC (17,973,020) (17,912,802) (60,218)
Intercompany payables - 4,211 (4,211)
-----------------------------------------------------------
TOTAL POST PETITION CURRENT LIABILITIES 6,882,427 6,680,363 202,064
Intercompany Notes Payable -
Pre Petition Liabilities 2,637,103 2,637,103 -
Pre Petition Estimated Construction Claims -
----------------------------------------------------------
TOTAL LIABILITIES 9,519,530 9,317,466 202,064
----------------------------------------------------------
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 (12,335,123) (12,030,153) (304,970)
----------------------------------------------------------
TOTAL SHAREHOLDERS' EQUITY 65,211,689 65,516,659 (304,970)
----------------------------------------------------------
TOTAL LIABILITIES & SHAREHOLDERS' EQUITY 74,731,219 74,834,125 (102,906)
==========================================================
</TABLE>
See accompanying notes to financial statement information.
NOTE: PSD was moved to Discontinued Operations in April 1999.
<PAGE>
OMEGA ENVIRONMENTAL, INC.
DEBTOR IN POSESSION CASE #97-06084
COMPARATIVE BALANCE SHEET INFORMATION
<TABLE>
<CAPTION>
(UNAUDITED) (UNAUDITED)
APRIL 30, MARCH 31,
1999 1999
CONTINUING CONTINUING
OPERATIONS OPERATIONS CHANGE
<S> <C> <C> <C>
CURRENT ASSETS
Cash 145,911 202,180 (56,269)
Restricted cash held in escrow 2,747,597 2,745,453 2,144
Accounts receivable
A/R--trade 11,300,914 11,540,162 (239,248)
A/R--interco - 4,211 (4,211)
A/R--employees 4,910 4,658 252
A/R--supplemental 1,367,675 1,367,675 -
A/R--misc. 1,236,172 1,236,172 -
Allowance for doubtful accounts (3,003,653) (2,881,666) (121,987)
-----------------------------------------
Accounts receivable, net 10,906,018 11,271,212 (365,194)
-----------------------------------------
Costs and earnings in excess of billings 5,641,063 5,110,554 530,509
Prepaid expenses 175,203 166,890 8,313
Inventory - - -
Inventory reserve - - -
-----------------------------------------
Inventory, net - - -
-----------------------------------------
Other current assets - - -
-----------------------------------------
TOTAL CURRENT ASSETS 19,615,792 19,496,289 119,503
-----------------------------------------
PROPERTY AND EQUIPMENT
Field equipment 2,409,535 2,358,695 50,840
Automotive equipment 1,122,871 1,124,549 (1,678)
Office furniture and equipment 1,001,877 1,004,333 (2,456)
Leasehold improvements 107,729 107,729 -
-----------------------------------------
TOTAL PROPERTY & EQUIP., AT COST 4,642,012 4,595,306 46,706
Accum. Depreciation (3,584,493) (3,537,691) (46,802)
-----------------------------------------
TOTAL PROPERTY & EQUIP., NET 1,057,519 1,057,615 (96)
-----------------------------------------
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 154,169 150,669 3,500
Investment & Intercompany in Subsidiaires 74,375,431 74,375,431 -
-----------------------------------------
TOTAL ASSETS 95,205,337 95,082,430 122,907
=========================================
POST PETITION CURRENT LIABILITIES
Accounts payable 707,237 548,990 158,247
Line of Credit 23,470,217 23,301,721 168,496
Accrued expenses, excluding bankruptcy costs 705,588 640,335 65,253
Accrued bankruptcy costs 1,326,004 1,226,004 100,000
Estimated claims against cash held in escrow 2,586,099 2,583,956 2,143
Intercompany - BNYFC (10,323,123) (10,297,157) (25,966)
Intercompany payables - 4,211 (4,211)
-----------------------------------------
TOTAL POST PETITION CURRENT LIABILITIES 18,472,022 18,008,060 463,962
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 31,281,281 30,817,319 463,962
-----------------------------------------
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 (17,158,927) (16,817,872) (341,055)
-----------------------------------------
TOTAL SHAREHOLDERS' EQUITY 63,924,056 64,265,111 (341,055)
-----------------------------------------
TOTAL LIABILITIES & SHAREHOLDERS' EQUITY 95,205,337 95,082,430 122,907
=========================================
<CAPTION>
(UNAUDITED) (UNAUDITED)
APRIL 30, 1999 MARCH 31, 1999
DISCONTINUED DISCONTINUED
OPERATIONS OPERATIONS CHANGE
----------------------------------------------
<S> <C> <C> <C>
CURRENT ASSETS
Cash 12,109 14,228 (2,119)
Restricted cash held in escrow -
Accounts receivable
A/R--trade 3,864,152 4,435,842 (571,690)
A/R--interco - - -
A/R--employees -
A/R--supplemental -
A/R--misc. 55,335 36,752 18,583
Allowance for doubtful accounts (2,896,027) (2,925,907) 29,880
----------------------------------------------
Accounts receivable, net 1,023,460 1,546,687 (523,227)
----------------------------------------------
Costs and earnings in excess of billings -
Prepaid expenses 14,858 37,304 (22,446)
Inventory -
Inventory reserve -
----------------------------------------------
Inventory, net - - -
----------------------------------------------
Other current assets 10,000 10,000 -
----------------------------------------------
TOTAL CURRENT ASSETS 1,060,427 1,608,219 (547,792)
----------------------------------------------
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 1,061,427 1,609,219 (547,792)
==============================================
POST PETITION CURRENT LIABILITIES
Accounts payable 9,391 11,631 (2,240)
Line of Credit
Accrued expenses, excluding bankruptcy costs 9,579 40,594 (31,015)
Accrued bankruptcy costs
Estimated claims against cash held in escrow
Intercompany - BNYFC 10,323,123 10,297,157 25,966
Intercompany payables - - -
----------------------------------------------
TOTAL POST PETITION CURRENT LIABILITIES 10,342,093 10,349,382 (7,289)
Intercompany Notes Payable 2,074,827 2,074,827 -
Pre Petition Liabilities 12,168,899 12,224,853 (55,954)
Pre Petition Estimated Construction Claims 2,000,000 2,000,000 -
----------------------------------------------
TOTAL LIABILITIES 26,585,819 26,649,062 (63,243)
----------------------------------------------
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 (17,712,245) (17,227,696) (484,549)
----------------------------------------------
TOTAL SHAREHOLDERS' EQUITY (25,524,392) (25,039,843) (484,549)
----------------------------------------------
TOTAL LIABILITIES & SHAREHOLDERS' EQUITY 1,061,427 1,609,219 (547,792)
==============================================
</TABLE>
See accompanying notes to financial statement information.
NOTE: PSD was moved to Discontinued Operations in April 1999.
<PAGE>
OMEGA ENVIRONMENTAL, INC.
DEBTOR IN POSESSION CASE #97-06084
COMPARATIVE BALANCE SHEET INFORMATION
<TABLE>
<CAPTION>
(UNAUDITED) (UNAUDITED)
APRIL 30, 1999 MARCH 31, 1999
COMBINED COMBINED
FINAL FINAL CHANGE
------------------------------------------------------------------
<S> <C> <C> <C>
CURRENT ASSETS
Cash 158,020 216,408 (58,388)
Restricted cash held in escrow 2,747,597 2,745,453 2,144
Accounts receivable
A/R--trade 15,165,066 15,976,004 (810,938)
A/R--interco - - -
A/R--employees 4,910 4,658 252
A/R--supplemental 1,367,675 1,367,675 -
A/R--misc. 1,291,507 1,272,924 18,583
Allowance for doubtful accounts (5,899,680) (5,807,573) (92,107)
------------------------------------------------------------------
Accounts receivable, net 11,929,478 12,813,688 (884,210)
------------------------------------------------------------------
Costs and earnings in excess of billings 5,641,063 5,110,554 530,509
Prepaid expenses 190,061 204,194 (14,133)
Inventory - - -
Inventory reserve - - -
------------------------------------------------------------------
Inventory, net - - -
------------------------------------------------------------------
Other current assets 10,000 10,000 -
------------------------------------------------------------------
TOTAL CURRENT ASSETS 20,676,219 21,100,297 (424,078)
------------------------------------------------------------------
PROPERTY AND EQUIPMENT
Field equipment 2,410,535 2,359,695 50,840
Automotive equipment 1,122,871 1,124,549 (1,678)
Office furniture and equipment 1,001,877 1,004,333 (2,456)
Leasehold improvements 107,729 107,729 -
------------------------------------------------------------------
TOTAL PROPERTY & EQUIP., AT COST 4,643,012 4,596,306 46,706
Accum. Depreciation (3,584,493) (3,537,691) (46,802)
------------------------------------------------------------------
TOTAL PROPERTY & EQUIP., NET 1,058,519 1,058,615 (96)
------------------------------------------------------------------
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 154,169 150,669 3,500
Investment & Intercompany in Subsidiaires 0 0 -
------------------------------------------------------------------
TOTAL ASSETS 21,891,333 22,312,007 (420,674)
==================================================================
POST PETITION CURRENT LIABILITIES
Accounts payable 716,628 560,621 156,007
Line of Credit 23,470,217 23,301,721 168,496
Accrued expenses, excluding bankruptcy 715,167 680,929 34,238
Accrued bankruptcy 1,326,004 1,226,004 100,000
Estimated claims against cash held in escrow 2,586,099 2,583,956 2,143
Intercompany - BNYFC - - -
Intercompany payables - - -
------------------------------------------------------------------
TOTAL POST PETITION CURRENT LIABILITIES 28,814,115 28,353,231 460,884
Intercompany Notes Payable - - -
Pre Petition Liabilities 15,775,761 15,831,715 (55,954)
Pre Petition Estimated Construction Claims 2,000,000 2,000,000 -
------------------------------------------------------------------
TOTAL LIABILITIES 46,589,876 46,184,946 404,930
------------------------------------------------------------------
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 (34,871,172) (34,045,568) (825,604)
------------------------------------------------------------------
TOTAL SHAREHOLDERS' EQUITY (24,698,543) (23,872,939) (825,604)
------------------------------------------------------------------
TOTAL LIABILITIES & SHAREHOLDERS' EQUITY 21,891,333 22,312,007 (420,674)
==================================================================
</TABLE>
See accompanying notes to financial statement information.
NOTE: PSD was moved to Discontinued Operations in April 1999.
<PAGE>
OMEGA ENVIRONMENTAL, INC.
DEBTOR IN POSSESSION CASE #97-06084
COMPARATIVE STATEMENT OF
OPERATIONS INFORMATION
<TABLE>
<CAPTION> (UNAUDITED) (UNAUDITED)
MONTH ENDED MONTH ENDED
APRIL 30, 1999 MARCH 31, 1999
ESD ESD CHANGE
------------------------------------------------------------
<S> <C> <C> <C>
Sales 1,740,172 1,408,595 331,577
Cost of Sales 1,270,036 944,564 325,472
------------------------------------------------------------
Gross Profit 470,136 464,031 6,105
Selling, General, and Administrative 441,497 513,614 (72,117)
------------------------------------------------------------
Income (Loss) From Operations 28,639 (49,583) 78,222
Other Income(Expense):
I/C Interest Income (Expense) (65,814) (67,911) 2,097
Interest Expense - (11) 11
Interest Income - - -
Gain (loss) on Asset Disposition 1,125 - 1,125
Other Expense (35) (119,698) 119,663
------------------------------------------------------------
Total Other (Expense) (64,724) (187,620) 122,896
Net Income (Loss) Before Bankruptcy
Administrative Expenses (36,085) (237,203) 201,118
Bankruptcy Administrative Expenses
------------------------------------------------------------
Net Income (Loss) (36,085) (237,203) 201,118
------------------------------------------------------------
<CAPTION>
(UNAUDITED) (UNAUDITED)
MONTH ENDED MONTH ENDED
APRIL 30, 1999 MARCH 31, 1999
CORPORATE CORPORATE CHANGE
-----------------------------------------------------------
<S> <C> <C> <C>
Sales - - -
Cost of Sales - - -
------------------------------------------------------------
Gross Profit - - -
Selling, General, and Administrative 115,089 84,201 30,888
------------------------------------------------------------
Income (Loss) From Operations (115,089) (84,201) (30,888)
Other Income(Expense):
I/C Interest Income (Expense) 132,116 136,230 (4,114)
Interest Expense (198,386) (203,045) 4,659
Interest Income -
Gain (loss) on Asset Disposition (5,691) - (5,691)
Other Expense (341) (13,292) 12,951
-----------------------------------------------------------
Total Other (Expense) (72,302) (80,107) 7,805
Net Income (Loss) Before Bankruptcy
Administrative Expenses (187,391) (164,308) (23,083)
Bankruptcy Administrative Expenses (117,579) 51,104 (168,683)
-----------------------------------------------------------
Net Income (Loss) (304,970) (113,204) (191,766)
-----------------------------------------------------------
</TABLE>
See accompanying notes to financial statement information.
NOTE: PSD was moved to Discontinued Operations in April 1999.
<PAGE>
OMEGA ENVIRONMENTAL, INC.
DEBTOR IN POSSESSION CASE #97-06084
COMPARATIVE STATEMENT OF
OPERATIONS INFORMATION
<TABLE>
<CAPTION>
(UNAUDITED) (UNAUDITED)
MONTH ENDED MONTH ENDED
APRIL 30, 1999 MARCH 31, 1999
CONTINUING CONTINUING
OPERATIONS OPERATIONS CHANGE
----------------------------------------------------------------------
<S> <C> <C> <C>
Sales 1,740,172 1,408,595 331,577
Cost of Sales 1,270,036 948,882 321,154
-----------------------------------------------------------------------
Gross Profit 470,136 459,713 10,423
Selling, General, and Administrative 556,586 623,666 (67,080)
-----------------------------------------------------------------------
Income (Loss) From Operations (86,450) (163,953) 77,503
Other Income(Expense):
I/C Interest Income (Expense) 66,302 68,319 (2,017)
Interest Expense (198,386) (203,056) 4,670
Interest Income 0 0 0
Gain (loss) on Asset Disposition (4,566) 0 (4,566)
Other Expense (376) (132,990) 132,614
------------------------------------------------------------------------
Total Other (Expense) (137,026) (340,704) 130,701
Net Income (Loss) Before Bankruptcy
Administrative Expenses (223,476) (504,657) 208,204
Bankruptcy Administrative Expenses (117,579) 51,104 (168,683)
------------------------------------------------------------------------
Net Income (Loss) (341,055) (453,553) 39,521
------------------------------------------------------------------------
<CAPTION>
(UNAUDITED) (UNAUDITED)
MONTH ENDED MONTH ENDED
APRIL 30, 1999 MARCH 31, 1999
DISCONTINUED DISCONTINUED
OPERATIONS OPERATIONS CHANGE
------------------------------------------------------------------
<S> <C> <C> <C>
Sales 0 0 0
Cost of Sales 0 4,318 (4,318)
------------------------------------------------------------------
Gross Profit 0 (4,318) 4,318
Selling, General, and Administrative 0 25,851 (25,851)
------------------------------------------------------------------
Income (Loss) From Operations 0 (30,169) 30,169
Other Income(Expense):
I/C Interest Income (Expense) (66,302) (68,322) 2,020
Interest Expense 0 0
Interest Income 0
Gain (loss) on Asset Disposition - (4,655) 4,655
Other Expense (418,247) (29,983) (388,264)
-------------------------------------------------------------------
Total Other (Expense) (484,549) (102,960) (381,589)
Net Income (Loss) Before Bankruptcy
Administrative Expenses (484,549) (133,129) (351,420)
Bankruptcy Administrative Expenses 0 0 0
-------------------------------------------------------------------
Net Income (Loss) (484,549) (133,129) (351,420)
-------------------------------------------------------------------
</TABLE>
See accompanying notes to financial statement information.
NOTE: PSD was moved to Discontinued Operations in April 1999.
<PAGE>
OMEGA ENVIRONMENTAL, INC.
DEBTOR IN POSSESSION CASE #97-06084
COMPARATIVE STATEMENT OF
OPERATIONS INFORMATION
<TABLE>
<CAPTION>
(UNAUDITED) (UNAUDITED)
MONTH ENDED MONTH ENDED
APRIL 30, 1999 MARCH 31, 1999
COMBINED COMBINED
FINAL FINAL CHANGE
--------------------------------------------------------------
<S> <C> <C> <C>
Sales 1,740,172 1,408,595 331,577
Cost of Sales 1,270,036 948,882 321,154
--------------------------------------------------------------
Gross Profit 470,136 459,713 10,423
Selling, General, and Administrative 556,586 623,666 (67,080)
--------------------------------------------------------------
Income (Loss) From Operations (86,450) (163,953) 77,503
Other Income(Expense):
I/C Interest Income (Expense) 0 (3) 3
Interest Expense (198,386) (203,056) 4,670
Interest Income 0 0 0
Gain (loss) on Asset Disposition (4,566) (4,655) 89
Other Expense (418,623) (162,973) (255,650)
-------------------------------------------------------------
Total Other (Expense) (621,575) (370,687) (250,888)
Net Income (Loss) Before Bankruptcy
Administrative Expenses (708,025) (534,640) (173,385)
Bankruptcy Administrative Expenses (117,579) 51,104 (168,683)
-------------------------------------------------------------
Net Income (Loss) (825,604) (483,536) (342,068)
-------------------------------------------------------------
</TABLE>
See accompanying notes to financial statement information.
NOTE: PSD was moved to Discontinued Operations in April 1999.
<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
APRIL 30, 1999 MARCH 31, 1999 CHANGE
----------------- --------------- -------------
<S> <C> <C> <C>
Cash flows from operating activities:
Net loss ($825,604) ($483,536) ($342,068)
Adjustments to reconcile net loss to net cash
(used in) provided by operating activities:
Depreciation 59,714 58,866 848
Write down of other long term assets 112,277 (112,277)
Write down of pre-petition liabilities (55,954) 0 0
(Gain) / Loss on sale of property and equipment 4,566 4,655 (89)
Change in certain assets & liabilities:
(Increase) decrease in:
Receivables, net 884,210 721,819 162,391
Costs in excess of billings (530,509) 78,449 (608,958)
Inventory, net 0 0 0
Prepaids & other assets 14,133 44,289 (30,156)
Increase (decrease) in:
Accounts payable 156,007 19,928 136,079
Accrued expenses 134,238 (265,746) 399,984
Other net changes in assets and liabilities (3,501) 0 (3,501)
------------------- ----------------- -------------
Total adjustments 662,904 774,537 (55,679)
-------------------- ----------------- -------------
Net cash provided by (used in) operating
activities (162,700) 291,001 (397,747)
Cash flows from investing activities:
Proceeds from sale of equipment 0 0 0
Additions to property and equipment (64,184) (7,752) (56,432)
-------------------- ------------------ ---------------
Net cash provided by (used in) investing
activities (64,184) (7,752) (56,432)
Cash flows from financing and other activities:
Net proceeds (repayments) from revolver credit loan 168,496 23,358 145,138
Reduction of pre-petition liabilities 0 (156,361) 156,361
-------------------- ------------------- -----------------
Net cash provided by (used in) financing activities 168,496 (133,003) 301,499
-------------------- ------------------- -----------------
Net increase (decrease) in cash (58,388) 150,246 (152,680)
CASH AT BEGINNING OF PERIOD 216,408 66,162 150,246
-------------------- ------------------- -----------------
CASH AT END OF PERIOD $158,020 $216,408 ($2,434)
==================== =================== =================
</TABLE>
See accompanying notes to financial statement information.
NOTE: PSD was moved to Discontinued Operations in April 1999.
<PAGE>
EXHIBIT 99.1
Omega Environmental, Inc.
Debtor in Possession Case # 97-06084
April 30, 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 April 30, 1999, the Company's borrowings from BNY Financial
Corporation ("BNYFC") were $23,470,217. 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 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 $148,000
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.
Restatement of Continuing and Discontinued Operations
In April 1999, the results of Petroleum Services Division (PSD) were
included in the Discontinued Operations balances rather than Continuing
Operations as a result of a sale of all operating assets of the division
completed on March 2, 1999. The March 31, 1999 financial statements have
been restated to conform with the April 30, 1999 presentation.
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