<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) November 23, 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 November 23, 1999, the Registrant filed unaudited financial
statement information as of and for each of the months ended
September 30, 1999 and August 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 September 30, 1999
and August 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: November 23, 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)
SEPTEMBER 30, 1999 AUGUST 31, 1999
ESD ESD CHANGE
------------------------------------------------
<S> <C> <C> <C>
CURRENT ASSETS
Cash 87,267 52,033 35,234
Restricted cash held in escrow 2,702,458 2,698,507 3,951
Accounts receivable
A/R--trade 11,351,633 10,695,088 656,545
A/R--interco 1,938 - 1,938
A/R--employees 3,655 1,633 2,022
A/R--supplemental 1,261,071 1,261,071 -
A/R--miscellaneous 11,579 27,899 (16,320)
Allowance for doubtful accounts (1,665,007) (1,662,559) (2,448)
------------------------------------------------
Accounts receivable, net 10,964,869 10,323,132 641,737
------------------------------------------------
Costs and earnings in excess of billings 4,992,046 4,712,576 279,470
Prepaid expenses 83,552 86,335 (2,783)
Other current assets -
------------------------------------------------
TOTAL CURRENT ASSETS 18,830,192 17,872,583 957,609
------------------------------------------------
PROPERTY AND EQUIPMENT
Field equipment 2,381,172 2,357,942 23,230
Automotive equipment 886,849 888,849 (2,000)
Office furniture and equipment 997,837 996,364 1,473
Land, Building, and leasehold improvements 107,729 107,729 -
------------------------------------------------
TOTAL PROPERTY & EQUIP., AT COST 4,373,587 4,350,884 22,703
Accum. Depreciation (3,446,212) (3,405,235) (40,977)
------------------------------------------------
TOTAL PROPERTY & EQUIP., NET 927,375 945,649 (18,274)
------------------------------------------------
Long-term accounts receivable - Other (Texas) - - -
Reserve for Long-term accounts receivable -
------------------------------------------------
Long-term accounts receivable - Other (Texas), net - - -
Other Assets 123,173 123,349 (176)
Investment & Intercompany in Subsidiaires -
------------------------------------------------
TOTAL ASSETS 19,880,740 18,941,581 939,159
------------------------------------------------
------------------------------------------------
POST PETITION CURRENT LIABILITIES
Accounts payable 774,866 566,924 207,942
Line of Credit -
Accrued expenses, excluding bankruptcy costs 811,207 625,142 186,065
Accrued bankruptcy costs -
Estimated claims against cash held in escrow 2,504,267 2,500,311 3,956
Intercompany - BNYFC 7,396,153 6,795,530 600,623
Pre Petition Accounts Payable Preference Payments -
------------------------------------------------
TOTAL POST PETITION CURRENT LIABILITIES 11,486,493 10,487,907 998,586
Intercompany Notes Payable 6,956,599 6,956,599 -
Pre Petition Liabilities 969,759 969,759 -
Pre Petition Estimated Construction Claims -
------------------------------------------------
TOTAL LIABILITIES 19,412,851 18,414,265 998,586
------------------------------------------------
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 (9,028,340) (9,028,340) -
Y-T-D net income pre petition (8,531) (8,531) -
Y-T-D net income post petition (5,052,917) (4,993,490) (59,427)
------------------------------------------------
TOTAL SHAREHOLDERS' EQUITY 467,889 527,316 (59,427)
------------------------------------------------
TOTAL LIABILITIES & SHAREHOLDERS' EQUITY 19,880,740 18,941,581 939,159
------------------------------------------------
------------------------------------------------
(UNAUDITED) (UNAUDITED)
SEPTEMBER 30, 1999 AUGUST 31, 1999
CORPORATE CORPORATE CHANGE
--------------------------------------------------
<S> <C> <C> <C>
CURRENT ASSETS
Cash 74,541 57,605 16,936
Restricted cash held in escrow -
Accounts receivable
A/R--trade - - -
A/R--interco - - -
A/R--employees - - -
A/R--supplemental -
A/R--miscellaneous 1,224,094 1,554,094 (330,000)
Allowance for doubtful accounts (1,076,094) (1,076,094) -
--------------------------------------------------
Accounts receivable, net 148,000 478,000 (330,000)
--------------------------------------------------
Costs and earnings in excess of billings -
Prepaid expenses 60,631 120,150 (59,519)
Other current assets -
--------------------------------------------------
TOTAL CURRENT ASSETS 283,172 655,755 (372,583)
--------------------------------------------------
PROPERTY AND EQUIPMENT
Field equipment - - -
Automotive equipment - - -
Office furniture and equipment 34,872 34,872 -
Land, Building, and leasehold improvements - - -
--------------------------------------------------
TOTAL PROPERTY & EQUIP., AT COST 34,872 34,872 -
Accum. Depreciation (34,127) (34,074) (53)
--------------------------------------------------
TOTAL PROPERTY & EQUIP., NET 745 798 (53)
--------------------------------------------------
Long-term accounts receivable - Other (Texas) - - -
Reserve for Long-term accounts receivable -
--------------------------------------------------
Long-term accounts receivable - Other (Texas), net - - -
Other Assets 41,622 41,622 -
Investment & Intercompany in Subsidiaires 74,375,430 74,375,431 (1)
--------------------------------------------------
TOTAL ASSETS 74,700,969 75,073,606 (372,637)
--------------------------------------------------
--------------------------------------------------
POST PETITION CURRENT LIABILITIES
Accounts payable 34,047 32,686 1,361
Line of Credit 24,031,090 23,572,336 458,754
Accrued expenses, excluding bankruptcy costs 12,503 12,306 197
Accrued bankruptcy costs 1,655,346 1,320,873 334,473
Estimated claims against cash held in escrow - - -
Intercompany - BNYFC (17,688,294) (17,088,916) (599,378)
Pre Petition Accounts Payable Preference Payments 1,938 1,938
--------------------------------------------------
TOTAL POST PETITION CURRENT LIABILITIES 8,046,630 7,849,285 197,345
Intercompany Notes Payable -
Pre Petition Liabilities 3,075,726 3,031,083 44,643
Pre Petition Estimated Construction Claims
-
--------------------------------------------------
TOTAL LIABILITIES 11,122,356 10,880,368 241,988
--------------------------------------------------
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 (13,968,199) (13,353,574) (614,625)
--------------------------------------------------
TOTAL SHAREHOLDERS' EQUITY 63,578,613 64,193,238 (614,625)
--------------------------------------------------
TOTAL LIABILITIES & SHAREHOLDERS' EQUITY 74,700,969 75,073,606 (372,637)
--------------------------------------------------
--------------------------------------------------
</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)
SEPTEMBER 30, 1999 AUGUST 31, 1999
CONTINUING CONTINUING
OPERATIONS OPERATIONS CHANGE
-------------------------------------------------
<S> <C> <C> <C>
CURRENT ASSETS
Cash 161,808 109,638 52,170
Restricted cash held in escrow 2,702,458 2,698,507 3,951
Accounts receivable
A/R--trade 11,351,633 10,695,088 656,545
A/R--interco 1,938 - 1,938
A/R--employees 3,655 1,633 2,022
A/R--supplemental 1,261,071 1,261,071 -
A/R--miscellaneous 1,235,673 1,581,993 (346,320)
Allowance for doubtful accounts (2,741,101) (2,738,653) (2,448)
-------------------------------------------------
Accounts receivable, net 11,112,869 10,801,132 311,737
-------------------------------------------------
Costs and earnings in excess of billings 4,992,046 4,712,576 279,470
Prepaid expenses 144,183 206,485 (62,302)
Other current assets - - -
-------------------------------------------------
TOTAL CURRENT ASSETS 19,113,364 18,528,338 585,026
-------------------------------------------------
PROPERTY AND EQUIPMENT
Field equipment 2,381,172 2,357,942 23,230
Automotive equipment 886,849 888,849 (2,000)
Office furniture and equipment 1,032,709 1,031,236 1,473
Land, Building, and leasehold improvements 107,729 107,729 -
-------------------------------------------------
TOTAL PROPERTY & EQUIP., AT COST 4,408,459 4,385,756 22,703
Accum. Depreciation (3,480,339) (3,439,309) (41,030)
-------------------------------------------------
TOTAL PROPERTY & EQUIP., NET 928,120 946,447 (18,327)
-------------------------------------------------
Long-term accounts receivable - Other (Texas) - - -
Reserve for Long-term accounts receivable - - -
-------------------------------------------------
Long-term accounts receivable - Other (Texas), net - - -
Other Assets 164,795 164,971 (176)
Investment & Intercompany in Subsidiaires 74,375,430 74,375,431 (1)
-------------------------------------------------
TOTAL ASSETS 94,581,709 94,015,187 566,522
-------------------------------------------------
-------------------------------------------------
POST PETITION CURRENT LIABILITIES
Accounts payable 808,913 599,610 209,303
Line of Credit 24,031,090 23,572,336 458,754
Accrued expenses, excluding bankruptcy costs 823,710 637,448 186,262
Accrued bankruptcy costs 1,655,346 1,320,873 334,473
Estimated claims against cash held in escrow 2,504,267 2,500,311 3,956
Intercompany - BNYFC (10,292,141) (10,293,386) 1,245
Pre Petition Accounts Payable Preference Payments 1,938 - 1,938
-------------------------------------------------
TOTAL POST PETITION CURRENT LIABILITIES 19,533,123 18,337,192 1,195,931
Intercompany Notes Payable 6,956,599 6,956,599 -
Pre Petition Liabilities 4,045,485 4,000,842 44,643
Pre Petition Estimated Construction Claims - - -
-------------------------------------------------
TOTAL LIABILITIES 30,535,207 29,294,633 1,240,574
-------------------------------------------------
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 (58,349,443) (58,349,443) -
Y-T-D net income pre petition (904,029) (904,029) -
Y-T-D net income post petition (19,021,116) (18,347,064) (674,052)
-------------------------------------------------
TOTAL SHAREHOLDERS' EQUITY 64,046,502 64,720,554 (674,052)
-------------------------------------------------
TOTAL LIABILITIES & SHAREHOLDERS' EQUITY 94,581,709 94,015,187 566,522
-------------------------------------------------
-------------------------------------------------
(UNAUDITED) (UNAUDITED)
SEPTEMBER 30, 1999 AUGUST 31, 1999
DISCONTINUED DISCONTINUED
OPERATIONS OPERATIONS CHANGE
---------------------------------------------------
<S> <C> <C> <C>
CURRENT ASSETS
Cash - - -
Restricted cash held in escrow 20,861 20,861 -
Accounts receivable
A/R--trade 3,756,148 4,218,586 (462,438)
A/R--interco - - -
A/R--employees -
A/R--supplemental -
A/R--miscellaneous - - -
Allowance for doubtful accounts (2,528,961) (3,038,399) 509,438
---------------------------------------------------
Accounts receivable, net 1,227,187 1,180,187 47,000
---------------------------------------------------
Costs and earnings in excess of billings -
Prepaid expenses - 2,800 (2,800)
Other current assets - - -
---------------------------------------------------
TOTAL CURRENT ASSETS 1,248,048 1,203,848 44,200
---------------------------------------------------
PROPERTY AND EQUIPMENT
Field equipment 1,000 1,000 -
Automotive equipment - - -
Office furniture and equipment - - -
Land, Building, and 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 receivable - Other (Texas), net - - -
Other Assets - - -
Investment & Intercompany in Subsidiaires -
---------------------------------------------------
TOTAL ASSETS 1,249,048 1,204,848 44,200
---------------------------------------------------
---------------------------------------------------
POST PETITION CURRENT LIABILITIES
Accounts payable - 1,139 (1,139)
Line of Credit - -
Accrued expenses, excluding bankruptcy costs 69,976 79,555 (9,579)
Accrued bankruptcy costs - - -
Estimated claims against cash held in escrow 20,807 20,807 -
Intercompany - BNYFC 10,292,141 10,293,386 (1,245)
Pre Petition Accounts Payable Preference Payments -
---------------------------------------------------
TOTAL POST PETITION CURRENT LIABILITIES 10,382,924 10,394,887 (11,963)
Intercompany Notes Payable 4,320,625 4,320,625 -
Pre Petition Liabilities 11,809,110 12,168,899 (359,789)
Pre Petition Estimated Construction Claims 1,800,000 1,800,000 -
---------------------------------------------------
TOTAL LIABILITIES 28,312,659 28,684,411 (371,752)
---------------------------------------------------
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 (53,656,003) (53,656,003) -
Y-T-D net income pre petition (941,907) (941,907) -
Y-T-D net income post petition (17,266,828) (17,682,780) 415,952
---------------------------------------------------
TOTAL SHAREHOLDERS' EQUITY (27,063,611) (27,479,563) 415,952
---------------------------------------------------
TOTAL LIABILITIES & SHAREHOLDERS' EQUITY 1,249,048 1,204,848 44,200
---------------------------------------------------
---------------------------------------------------
</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)
SEPTEMBER 30, 1999 AUGUST 31, 1999
COMBINED COMBINED
FINAL FINAL CHANGE
-----------------------------------------------------
<S> <C> <C> <C>
CURRENT ASSETS
Cash 161,808 109,638 52,170
Restricted cash held in escrow 2,723,319 2,719,368 3,951
Accounts receivable
A/R--trade 15,107,781 14,913,674 194,107
A/R--interco (0) - (0)
A/R--employees 3,655 1,633 2,022
A/R--supplemental 1,261,071 1,261,071 -
A/R--miscellaneous 1,235,673 1,581,993 (346,320)
Allowance for doubtful accounts (5,270,062) (5,777,052) 506,990
-----------------------------------------------------
Accounts receivable, net 12,338,118 11,981,319 356,799
-----------------------------------------------------
Costs and earnings in excess of billings 4,992,046 4,712,576 279,470
Prepaid expenses 144,183 209,285 (65,102)
Other current assets - - -
-----------------------------------------------------
TOTAL CURRENT ASSETS 20,359,474 19,732,186 627,288
-----------------------------------------------------
PROPERTY AND EQUIPMENT
Field equipment 2,382,172 2,358,942 23,230
Automotive equipment 886,849 888,849 (2,000)
Office furniture and equipment 1,032,709 1,031,236 1,473
Land, Building, and leasehold improvements 107,729 107,729 -
-----------------------------------------------------
TOTAL PROPERTY & EQUIP., AT COST 4,409,459 4,386,756 22,703
Accum. Depreciation (3,480,339) (3,439,309) (41,030)
-----------------------------------------------------
TOTAL PROPERTY & EQUIP., NET 929,120 947,447 (18,327)
-----------------------------------------------------
Long-term accounts receivable - Other (Texas) - - -
Reserve for Long-term accounts receivable - - -
-----------------------------------------------------
Long-term accounts receivable - Other (Texas), net - - -
Other Assets 164,795 164,971 (176)
Investment & Intercompany in Subsidiaires - 0 (0)
-----------------------------------------------------
TOTAL ASSETS 21,453,389 20,844,604 608,784
-----------------------------------------------------
-----------------------------------------------------
POST PETITION CURRENT LIABILITIES
Accounts payable 808,913 600,749 208,164
Line of Credit 24,031,090 23,572,336 458,754
Accrued expenses, excluding bankruptcy costs 893,686 717,003 176,683
Accrued bankruptcy costs 1,655,346 1,320,873 334,473
Estimated claims against cash held in escrow 2,525,074 2,521,118 3,956
Intercompany - BNYFC - - -
Pre Petition Accounts Payable Preference Payments 0 - 0
-----------------------------------------------------
TOTAL POST PETITION CURRENT LIABILITIES 29,914,109 28,732,079 1,182,030
Intercompany Notes Payable - - -
Pre Petition Liabilities 15,854,595 16,169,741 (315,146)
Pre Petition Estimated Construction Claims 1,800,000 1,800,000 -
-----------------------------------------------------
TOTAL LIABILITIES 47,568,704 46,701,820 866,884
-----------------------------------------------------
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 (112,005,446) (112,005,446) -
Y-T-D net income pre petition (1,845,936) (1,845,936) -
Y-T-D net income post petition (36,287,944) (36,029,844) (258,100)
-----------------------------------------------------
TOTAL SHAREHOLDERS' EQUITY (26,115,316) (25,857,216) (258,100)
-----------------------------------------------------
TOTAL LIABILITIES & SHAREHOLDERS' EQUITY 21,453,389 20,844,604 608,784
-----------------------------------------------------
-----------------------------------------------------
</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) (UNAUDITED) (UNAUDITED)
MONTH ENDED MONTH ENDED MONTH ENDED MONTH ENDED
SEPTEMBER 30, 1999 AUGUST 31, 1999 SEPTEMBER 30, 1999 AUGUST 31, 1999
ESD ESD CHANGE CORPORATE CORPORATE CHANGE
------------------------------------------- ------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
Sales 1,731,448 1,548,684 182,764 - - -
Cost of Sales 1,278,014 979,542 298,472 - - -
------------------------------------------- ------------------------------------------
Gross Profit 453,434 569,142 (115,708) - - -
Selling, General, and Administrative 450,194 414,779 35,415 81,773 79,135 2,638
------------------------------------------- ------------------------------------------
Income (Loss) From Operations 3,240 154,363 (151,123) (81,773) (79,135) (2,638)
Other Income(Expense):
I/C Interest Income (Expense) (63,955) (63,365) (590) 63,955 63,365 590
Interest Expense - - - (212,550) (214,299) 1,749
Interest Income - - - -
Gain (loss) on Asset Disposition 1,288 (16,469) 17,757 - - -
Other Expense - - - - - -
------------------------------------------- ------------------------------------------
Total Other (Expense) (62,667) (79,834) 17,167 (148,595) (150,934) 2,339
Net Income (Loss) Before Bankruptcy
Administrative Expenses (59,427) 74,529 (133,956) (230,368) (230,069) (299)
Bankruptcy Administrative Expenses (384,257) (115,000) (269,257)
------------------------------------------- ------------------------------------------
Net Income (Loss) (59,427) 74,529 (133,956) (614,625) (345,069) (269,556)
------------------------------------------- ------------------------------------------
</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
SEPTEMBER 30, 1999 AUGUST 31, 1999 SEPTEMBER 30, 1999 AUGUST 31, 1999
CONTINUING CONTINUING DISCONTINUED DISCONTINUED
OPERATIONS OPERATIONS CHANGE OPERATIONS OPERATIONS CHANGE
--------------------------------------------- ------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
Sales 1,731,448 1,548,684 182,764 0 0 0
Cost of Sales 1,278,014 979,542 298,472 0 0 0
--------------------------------------------- ------------------------------------------
Gross Profit 453,434 569,142 (115,708) 0 0 0
Selling, General, and Administrative 531,967 493,914 38,053 0 0 0
--------------------------------------------- ------------------------------------------
Income (Loss) From Operations (78,533) 75,228 (153,761) 0 0 0
Other Income(Expense):
I/C Interest Income (Expense) 0 0 0 0 0 0
Interest Expense (212,550) (214,299) 1,749 0 0 0
Interest Income 0 0 0 0
Gain (loss) on Asset Disposition 1,288 (16,469) 17,757 - 0 0
Other Expense 0 0 0 415,952 145,514 270,438
--------------------------------------------- ------------------------------------------
Total Other (Expense) (211,262) (230,768) 19,506 415,952 145,514 270,438
Net Income (Loss) Before Bankruptcy
Administrative Expenses (289,795) (155,540) (134,255) 415,952 145,514 270,438
Bankruptcy Administrative Expenses (384,257) (115,000) (269,257) 0 0 0
--------------------------------------------- ------------------------------------------
Net Income (Loss) (674,052) (270,540) (403,512) 415,952 145,514 270,438
--------------------------------------------- ------------------------------------------
--------------------------------------------- ------------------------------------------
</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
SEPTEMBER 30, 1999 AUGUST 31, 1999
COMBINED COMBINED
FINAL FINAL CHANGE
----------------------------------------------------------
<S> <C> <C> <C>
Sales 1,731,448 1,548,684 182,764
Cost of Sales 1,278,014 979,542 298,472
----------------------------------------------------------
Gross Profit 453,434 569,142 (115,708)
Selling, General, and Administrative 531,967 493,914 38,053
----------------------------------------------------------
Income (Loss) From Operations (78,533) 75,228 (153,761)
Other Income(Expense):
I/C Interest Income (Expense) 0 0 0
Interest Expense (212,550) (214,299) 1,749
Interest Income 0 0 0
Gain (loss) on Asset Disposition 1,288 (16,469) 17,757
Other Expense 415,952 145,514 270,438
----------------------------------------------------------
Total Other (Expense) 204,690 (85,254) 289,944
Net Income (Loss) Before Bankruptcy
Administrative Expenses 126,157 (10,026) 136,183
Bankruptcy Administrative Expenses (384,257) (115,000) (269,257)
----------------------------------------------------------
Net Income (Loss) (258,100) (125,026) (133,074)
----------------------------------------------------------
</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
<TABLE>
<CAPTION>
(UNAUDITED) (UNAUDITED)
MONTH ENDED MONTH ENDED
SEPTEMBER 30, 1999 AUGUST 31, 1999 CHANGE
---------------- --------------- --------------
<S> <C> <C> <C>
Cash flows from operating activities:
Net loss ($258,100) ($125,026) ($133,074)
Adjustments to reconcile net loss to net cash
(used in) provided by operating activities:
Depreciation 46,120 53,530 (7,410)
Change in estimate of pre-petition construction claims 0 (200,000) 200,000
Write off of accounts payable in discontinued operations (406,789) 0 (406,789)
(Gain) / Loss on sale of property and equipment 1,288 16,469 (15,181)
Change in certain assets & liabilities:
(Increase) decrease in:
Receivables, net (356,799) 281,798 (638,597)
Costs in excess of billings (279,470) (89,523) (189,947)
Prepaids & other assets 65,102 42,464 22,638
Increase (decrease) in:
Accounts payable 208,164 222,463 (14,299)
Accrued expenses 511,156 85,915 425,241
Other net changes in assets and liabilities 181 35,723 (35,542)
--------- --------- ---------
Total adjustments (211,047) 448,839 (659,886)
--------- --------- ---------
Net cash provided by (used in) operating activities (469,147) 323,813 (792,960)
Cash flows from investing activities :
Proceeds from sale of equipment 1,500 26,595 (25,095)
Additions to property and equipment (30,580) (12,212) (18,368)
--------- --------- ---------
Net cash provided by (used in) investing activities (29,080) 14,383 (43,463)
Cash flows from financing and other activities:
Net proceeds (repayments) from revolver credit loan 458,754 (429,775) 888,529
(Reduction) Increase of pre-petition liabilities 91,643 116,327 (24,684)
--------- --------- ---------
Net cash provided by (used in) financing activities 550,397 (313,448) 863,845
--------- --------- ---------
Net increase (decrease) in cash 52,170 24,748 27,422
CASH AT BEGINNING OF PERIOD 109,638 84,890 24,748
--------- --------- ---------
CASH AT END OF PERIOD $ 161,808 $ 109,638 $ 52,170
--------- --------- ---------
--------- --------- ---------
</TABLE>
See accompanying notes to financial statement information
<PAGE>
EXHIBIT 99.1
Omega Environmental, Inc.
Debtor in Possession Case # 97-06084
September 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 September 30, 1999, the Company's borrowings from BNY Financial
Corporation ("BNYFC") were $24,094,298.
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. In September 1999, certain amounts
receivable and payables in the STC division were written off which resulted in
$406,789 of income recorded in the discontinued operations section. A $47,000
receivable remains in the STC division as a result of this settlement. 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. These funds are held in escrow pending the final determination of the
amount of liens asserted by Texas tax authorities.
Pre-Petition Liabilities
Beginning in June 1999, Omega began collecting pre-petition preference
recoveries which are accounted for in the pre-petition liabilities section of
the Corporate balance sheet. The total collected as of month end September was
$438,626.
