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Previous: BRANDYWINE BLUE FUND INC, N-30D, 1999-10-18 |
Next: TESSERACT GROUP INC, DEF 14A, 1999-10-18 |
<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) October 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 October 13, 1999, the Registrant filed unaudited financial
statement information as of and for each of the months ended
August 31, 1999 and July 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 August 31, 1999 and
July 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: October 13, 1999 /s/ Donald E. Condit
---------------------------------------
Donald E. Condit
Chief Financial Officer
<PAGE>
OMEGA ENVIRONMENTAL, INC. EXHIBIT 99.1
DEBTOR IN POSSESSION CASE #97-06084
COMPARATIVE BALANCE SHEET INFORMATION
<TABLE>
<CAPTION>
(UNAUDITED) (UNAUDITED)
AUGUST 31, 1999 JULY 31, 1999
ESD ESD CHANGE
-------------------------------------------------------------
<S> <C> <C> <C>
CURRENT ASSETS
Cash 52,033 66,227 (14,194)
Restricted cash held in escrow 2,698,507 2,731,270 (32,763)
Accounts receivable
A/R--trade 10,695,088 11,054,072 (358,984)
A/R--interco - - -
A/R--employees 1,633 5,501 (3,868)
A/R--supplemental 1,261,071 1,261,071 -
A/R--miscellaneous 27,899 11,579 16,320
Allowance for doubtful accounts (1,662,559) (1,727,293) 64,734
-------------------------------------------------------------
Accounts receivable, net 10,323,132 10,604,930 (281,798)
-------------------------------------------------------------
Costs and earnings in excess of billings 4,712,576 4,623,053 89,523
Prepaid expenses 86,335 69,281 17,054
Other current assets -
-------------------------------------------------------------
TOTAL CURRENT ASSETS 17,872,583 18,094,761 (222,178)
-------------------------------------------------------------
PROPERTY AND EQUIPMENT
Field equipment 2,357,942 2,452,411 (94,469)
Automotive equipment 888,849 891,042 (2,193)
Office furniture and equipment 996,364 994,579 1,785
Land, Building, and leasehold improvements 107,729 107,729 -
-------------------------------------------------------------
TOTAL PROPERTY & EQUIP., AT COST 4,350,884 4,445,761 (94,877)
Accum. Depreciation (3,405,235) (3,415,782) 10,547
-------------------------------------------------------------
TOTAL PROPERTY & EQUIP., NET 945,649 1,029,979 (84,330)
-------------------------------------------------------------
Long-term accounts receivable - Other (Texas) - - -
Reserve for Long-term accounts receivable -
-------------------------------------------------------------
Long-term accounts receivable - Other (Texas), net - - -
Other Assets 123,349 125,849 (2,500)
Investment & Intercompany in Subsidiaries -
-------------------------------------------------------------
TOTAL ASSETS 18,941,581 19,250,589 (309,008)
-------------------------------------------------------------
-------------------------------------------------------------
POST PETITION CURRENT LIABILITIES
Accounts payable 566,924 284,847 282,077
Line of Credit -
Accrued expenses, excluding bankruptcy costs 625,142 654,227 (29,085)
Accrued bankruptcy costs -
Estimated claims against cash held in escrow 2,500,311 2,499,851 460
Intercompany - BNYFC 6,795,530 7,432,519 (636,989)
Pre Petition Accounts Payable Preference Payments -
-------------------------------------------------------------
TOTAL POST PETITION CURRENT LIABILITIES 10,487,907 10,871,444 (383,537)
Intercompany Notes Payable 6,956,599 6,956,599 -
Pre Petition Liabilities 969,759 969,759 -
Pre Petition Estimated Construction Claims -
-------------------------------------------------------------
TOTAL LIABILITIES 18,414,265 18,797,802 (383,537)
-------------------------------------------------------------
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 (4,993,490) (5,068,019) 74,529
-------------------------------------------------------------
TOTAL SHAREHOLDERS' EQUITY 527,316 452,787 74,529
-------------------------------------------------------------
TOTAL LIABILITIES & SHAREHOLDERS' EQUITY 18,941,581 19,250,589 (309,008)
-------------------------------------------------------------
-------------------------------------------------------------
OMEGA ENVIRONMENTAL, INC.
DEBTOR IN POSSESSION CASE #97-06084
COMPARATIVE BALANCE SHEET INFORMATION
(UNAUDITED) (UNAUDITED)
AUGUST 31, 1999 JULY 31, 1999
CORPORATE CORPORATE CHANGE
-------------------------------------------------------------
<S> <C> <C> <C>
CURRENT ASSETS
Cash 57,605 18,663 38,942
Restricted cash held in escrow -
Accounts receivable
A/R--trade - - -
A/R--interco - - -
A/R--employees - - -
A/R--supplemental -
A/R--miscellaneous 1,554,094 1,554,094 -
Allowance for doubtful accounts (1,076,094) (1,076,094) -
--------------------------------------------------------------
Accounts receivable, net 478,000 478,000 -
--------------------------------------------------------------
Costs and earnings in excess of billings -
Prepaid expenses 120,150 179,668 (59,518)
Other current assets -
--------------------------------------------------------------
TOTAL CURRENT ASSETS 655,755 676,331 (20,576)
--------------------------------------------------------------
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 (34,074) (34,022) (52)
--------------------------------------------------------------
TOTAL PROPERTY & EQUIP., NET 798 850 (52)
--------------------------------------------------------------
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 Subsidiaries 74,375,431 74,375,431 -
--------------------------------------------------------------
TOTAL ASSETS 75,073,606 75,094,234 (20,628)
--------------------------------------------------------------
--------------------------------------------------------------
POST PETITION CURRENT LIABILITIES
Accounts payable 32,686 34,588 (1,902)
Line of Credit 23,572,336 24,002,111 (429,775)
Accrued expenses, excluding bankruptcy costs 12,306 12,306 -
Accrued bankruptcy costs 1,320,873 1,205,873 115,000
Estimated claims against cash held in escrow - - -
Intercompany - BNYFC (17,088,916) (17,613,707) 524,791
Pre Petition Accounts Payable Preference Payments - -
--------------------------------------------------------------
TOTAL POST PETITION CURRENT LIABILITIES 7,849,285 7,918,824 208,114
Intercompany Notes Payable -
Pre Petition Liabilities 3,031,083 2,914,756 116,327
Pre Petition Estimated Construction Claims -
--------------------------------------------------------------
TOTAL LIABILITIES 10,880,368 10,555,927 324,441
--------------------------------------------------------------
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 (13,353,574) (13,008,505) (345,069)
--------------------------------------------------------------
TOTAL SHAREHOLDERS' EQUITY 64,193,238 64,538,307 (345,069)
--------------------------------------------------------------
TOTAL LIABILITIES & SHAREHOLDERS' EQUITY 75,073,606 75,094,234 (20,628)
--------------------------------------------------------------
--------------------------------------------------------------
</TABLE>
See accompanying notes to financial statement information
<PAGE>
OMEGA ENVIRONMENTAL, INC.
DEBTOR IN POSSESSION CASE #97-06084
COMPARATIVE BALANCE SHEET INFORMATION
<TABLE>
<CAPTION>
(UNAUDITED) (UNAUDITED)
AUGUST 31, 1999 JULY 31, 1999
CONTINUING CONTINUING
OPERATIONS OPERATIONS CHANGE
-------------------------------------------------------------
<S> <C> <C> <C>
CURRENT ASSETS
Cash 109,638 84,890 24,748
Restricted cash held in escrow 2,698,507 2,731,270 (32,763)
Accounts receivable
A/R--trade 10,695,088 11,054,072 (358,984)
A/R--interco - - -
A/R--employees 1,633 5,501 (3,868)
A/R--supplemental 1,261,071 1,261,071 -
A/R--miscellaneous 1,581,993 1,565,673 16,320
Allowance for doubtful accounts (2,738,653) (2,803,387) 64,734
-------------------------------------------------------------
Accounts receivable, net 10,801,132 11,082,930 (281,798)
-------------------------------------------------------------
Costs and earnings in excess of billings 4,712,576 4,623,053 89,523
Prepaid expenses 206,485 248,949 (42,464)
Other current assets - - -
-------------------------------------------------------------
TOTAL CURRENT ASSETS 18,528,338 18,771,092 (242,754)
-------------------------------------------------------------
PROPERTY AND EQUIPMENT
Field equipment 2,357,942 2,452,411 (94,469)
Automotive equipment 888,849 891,042 (2,193)
Office furniture and equipment 1,031,236 1,029,451 1,785
Land, Building, and leasehold improvements 107,729 107,729 -
-------------------------------------------------------------
TOTAL PROPERTY & EQUIP., AT COST 4,385,756 4,480,633 (94,877)
Accum. Depreciation (3,439,309) (3,449,804) 10,495
-------------------------------------------------------------
TOTAL PROPERTY & EQUIP., NET 946,447 1,030,829 (84,382)
-------------------------------------------------------------
Long-term accounts receivable - Other (Texas) - - -
Reserve for Long-term accounts receivable - - -
-------------------------------------------------------------
Long-term accounts receivable - Other (Texas), net - - -
Other Assets 164,971 167,471 (2,500)
Investment & Intercompany in Subsidiaries 74,375,431 74,375,431 -
-------------------------------------------------------------
TOTAL ASSETS 94,015,187 94,344,823 (329,636)
-------------------------------------------------------------
-------------------------------------------------------------
POST PETITION CURRENT LIABILITIES
Accounts payable 599,610 319,435 280,175
Line of Credit 23,572,336 24,002,111 (429,775)
Accrued expenses, excluding bankruptcy costs 637,448 666,533 (29,085)
Accrued bankruptcy costs 1,320,873 1,205,873 115,000
Estimated claims against cash held in escrow 2,500,311 2,499,851 460
Intercompany - BNYFC (10,293,386) (10,181,188) (112,198)
Pre Petition Accounts Payable Preference Payments - -
-------------------------------------------------------------
TOTAL POST PETITION CURRENT LIABILITIES 18,337,192 18,790,268 (175,423)
Intercompany Notes Payable 6,956,599 6,956,599 -
Pre Petition Liabilities 4,000,842 3,884,515 116,327
Pre Petition Estimated Construction Claims - - -
-------------------------------------------------------------
TOTAL LIABILITIES 29,294,633 29,353,729 (59,096)
-------------------------------------------------------------
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 (18,347,064) (18,076,524) (270,540)
-------------------------------------------------------------
TOTAL SHAREHOLDERS' EQUITY 64,720,554 64,991,094 (270,540)
-------------------------------------------------------------
TOTAL LIABILITIES & SHAREHOLDERS' EQUITY 94,015,187 94,344,823 (329,636)
-------------------------------------------------------------
-------------------------------------------------------------
OMEGA ENVIRONMENTAL, INC.
DEBTOR IN POSSESSION CASE #97-06084
COMPARATIVE BALANCE SHEET INFORMATION
(UNAUDITED) (UNAUDITED)
AUGUST 31, 1999 JULY 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 4,218,586 4,224,542 (5,956)
A/R--interco - - -
A/R--employees -
A/R--supplemental -
A/R--miscellaneous - - -
Allowance for doubtful accounts (3,038,399) (3,044,355) 5,956
----------------------------------------------------------
Accounts receivable, net 1,180,187 1,180,187 -
----------------------------------------------------------
Costs and earnings in excess of billings -
Prepaid expenses 2,800 2,800 -
Other current assets - - -
----------------------------------------------------------
TOTAL CURRENT ASSETS 1,203,848 1,203,848 -
----------------------------------------------------------
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 Subsidiaries -
----------------------------------------------------------
TOTAL ASSETS 1,204,848 1,204,848 -
----------------------------------------------------------
----------------------------------------------------------
POST PETITION CURRENT LIABILITIES
Accounts payable 1,139 58,851 (57,712)
Line of Credit -
Accrued expenses, excluding bankruptcy costs 79,555 79,555 -
Accrued bankruptcy costs - - -
Estimated claims against cash held in escrow 20,807 20,807 -
Intercompany - BNYFC 10,293,386 10,181,188 112,198
Pre Petition Accounts Payable Preference Payments -
----------------------------------------------------------
TOTAL POST PETITION CURRENT LIABILITIES 10,394,887 10,340,401 54,486
Intercompany Notes Payable 4,320,625 4,320,625 -
Pre Petition Liabilities 12,168,899 12,168,899 -
Pre Petition Estimated Construction Claims 1,800,000 2,000,000 (200,000)
----------------------------------------------------------
TOTAL LIABILITIES 28,684,411 28,829,925 (145,514)
----------------------------------------------------------
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 (17,682,780) (17,828,294) 145,514
----------------------------------------------------------
TOTAL SHAREHOLDERS' EQUITY (27,479,563) (27,625,077) 145,514
----------------------------------------------------------
TOTAL LIABILITIES & SHAREHOLDERS' EQUITY 1,204,848 1,204,848 -
----------------------------------------------------------
----------------------------------------------------------
</TABLE>
See accompanying notes to financial statement information
<PAGE>
OMEGA ENVIRONMENTAL, INC.
DEBTOR IN POSSESSION CASE #97-06084
COMPARATIVE BALANCE SHEET INFORMATION
<TABLE>
<CAPTION>
(UNAUDITED) (UNAUDITED)
AUGUST 31, 1999 JULY 31, 1999
COMBINED COMBINED
FINAL FINAL CHANGE
----------------------------------------------------------
<S> <C> <C> <C>
CURRENT ASSETS
Cash 109,638 84,890 24,748
Restricted cash held in escrow 2,719,368 2,752,131 (32,763)
Accounts receivable
A/R--trade 14,913,674 15,278,614 (364,940)
A/R--interco - - -
A/R--employees 1,633 5,501 (3,868)
A/R--supplemental 1,261,071 1,261,071 -
A/R--miscellaneous 1,581,993 1,565,673 16,320
Allowance for doubtful accounts (5,777,052) (5,847,742) 70,690
----------------------------------------------------------
Accounts receivable, net 11,981,319 12,263,117 (281,798)
----------------------------------------------------------
Costs and earnings in excess of billings 4,712,576 4,623,053 89,523
Prepaid expenses 209,285 251,749 (42,464)
Other current assets - - -
----------------------------------------------------------
TOTAL CURRENT ASSETS 19,732,186 19,974,940 (242,754)
----------------------------------------------------------
PROPERTY AND EQUIPMENT
Field equipment 2,358,942 2,453,411 (94,469)
Automotive equipment 888,849 891,042 (2,193)
Office furniture and equipment 1,031,236 1,029,451 1,785
Land, Building, and leasehold improvements 107,729 107,729 -
----------------------------------------------------------
TOTAL PROPERTY & EQUIP., AT COST 4,386,756 4,481,633 (94,877)
Accum. Depreciation (3,439,309) (3,449,804) 10,495
----------------------------------------------------------
TOTAL PROPERTY & EQUIP., NET 947,447 1,031,829 (84,382)
----------------------------------------------------------
Long-term accounts receivable - Other (Texas) - - -
Reserve for Long-term accounts receivable - - -
----------------------------------------------------------
Long-term accounts receivable - Other (Texas), net - - -
Other Assets 164,971 167,471 (2,500)
Investment & Intercompany in Subsidiaries 0 0 -
----------------------------------------------------------
TOTAL ASSETS 20,844,604 21,174,240 (329,636)
----------------------------------------------------------
----------------------------------------------------------
POST PETITION CURRENT LIABILITIES
Accounts payable 600,749 378,286 222,463
Line of Credit 23,572,336 24,002,111 (429,775)
Accrued expenses, excluding bankruptcy costs 717,003 746,088 (29,085)
Accrued bankruptcy costs 1,320,873 1,205,873 115,000
Estimated claims against cash held in escrow 2,521,118 2,520,658 460
Intercompany - BNYFC - - -
Pre Petition Accounts Payable Preference Payments - -
----------------------------------------------------------
TOTAL POST PETITION CURRENT LIABILITIES 28,732,079 29,130,669 (120,937)
Intercompany Notes Payable - - -
Pre Petition Liabilities 16,169,741 16,053,414 116,327
Pre Petition Estimated Construction Claims 1,800,000 2,000,000 (200,000)
----------------------------------------------------------
TOTAL LIABILITIES 46,701,820 46,906,430 (204,610)
----------------------------------------------------------
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 (36,029,844) (35,904,818) (125,026)
----------------------------------------------------------
TOTAL SHAREHOLDERS' EQUITY (25,857,216) (25,732,190) (125,026)
----------------------------------------------------------
TOTAL LIABILITIES & SHAREHOLDERS' EQUITY 20,844,604 21,174,240 (329,636)
----------------------------------------------------------
----------------------------------------------------------
</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
AUGUST 31, 1999 JULY 31, 1999
ESD ESD CHANGE
-----------------------------------------------------------
<S> <C> <C> <C>
Sales 1,548,684 1,151,924 396,760
Cost of Sales 979,542 804,794 174,748
-----------------------------------------------------------
Gross Profit 569,142 347,130 222,012
Selling, General, and Administrative 414,779 405,068 9,711
-----------------------------------------------------------
Income (Loss) From Operations 154,363 (57,938) 212,301
Other Income (Expense):
I/C Interest Income (Expense) (63,365) (67,568) 4,203
Interest Expense - - -
Interest Income - - -
Gain (loss) on Asset Disposition (16,469) 35,757 (52,226)
Other Expense - - -
-----------------------------------------------------------
Total Other (Expense) (79,834) (31,811) (48,023)
Net Income (Loss) Before Bankruptcy
Administrative Expenses 74,529 (89,749) 164,278
Bankruptcy Administrative Expenses
-----------------------------------------------------------
Net Income (Loss) 74,529 (89,749) 164,278
-----------------------------------------------------------
OMEGA ENVIRONMENTAL, INC.
DEBTOR IN POSSESSION CASE #97-06084
COMPARATIVE STATEMENT OF
OPERATIONS INFORMATION
(UNAUDITED) (UNAUDITED)
MONTH ENDED MONTH ENDED
AUGUST 31, 1999 JULY 31, 1999
CORPORATE CORPORATE CHANGE
-------------------------------------------------------------
<S> <C> <C> <C>
Sales - - -
Cost of Sales - - -
-------------------------------------------------------------
Gross Profit - - -
Selling, General, and Administrative 79,135 94,884 (15,749)
-------------------------------------------------------------
Income (Loss) From Operations (79,135) (94,884) 15,749
Other Income (Expense):
I/C Interest Income (Expense) 63,365 67,568 (4,203)
Interest Expense (214,299) (216,381) 2,082
Interest Income -
Gain (loss) on Asset Disposition - - -
Other Expense - - -
-------------------------------------------------------------
Total Other (Expense) (150,934) (148,813) (2,121)
Net Income (Loss) Before Bankruptcy
Administrative Expenses (230,069) (243,697) 13,628
Bankruptcy Administrative Expenses (115,000) (100,000) (15,000)
-------------------------------------------------------------
Net Income (Loss) (345,069) (343,697) (1,372)
-------------------------------------------------------------
</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
AUGUST 31, 1999 JULY 31, 1999
CONTINUING CONTINUING
OPERATIONS OPERATIONS CHANGE
------------------------------------------------------------
<S> <C> <C> <C>
Sales 1,548,684 1,151,924 396,760
Cost of Sales 979,542 804,794 174,748
------------------------------------------------------------
Gross Profit 569,142 347,130 222,012
Selling, General, and Administrative 493,914 499,952 (6,038)
------------------------------------------------------------
Income (Loss) From Operations 75,228 (152,822) 228,050
Other Income (Expense):
I/C Interest Income (Expense) 0 0 0
Interest Expense (214,299) (216,381) 2,082
Interest Income 0 0 0
Gain (loss) on Asset Disposition (16,469) 35,757 (52,226)
Other Expense 0 0 0
------------------------------------------------------------
Total Other (Expense) (230,768) (180,624) (50,144)
Net Income (Loss) Before Bankruptcy
Administrative Expenses (155,540) (333,446) 177,906
Bankruptcy Administrative Expenses (115,000) (100,000) (15,000)
------------------------------------------------------------
Net Income (Loss) (270,540) (433,446) 162,906
------------------------------------------------------------
OMEGA ENVIRONMENTAL, INC.
DEBTOR IN POSSESSION CASE #97-06084
COMPARATIVE STATEMENT OF
OPERATIONS INFORMATION
(UNAUDITED) (UNAUDITED)
MONTH ENDED MONTH ENDED
AUGUST 31, 1999 JULY 31, 1999
DISCONTINUED DISCONTINUED
OPERATIONS OPERATIONS CHANGE
--------------------------------------------------------
<S> <C> <C> <C>
Sales 0 0 0
Cost of Sales 0 0 0
--------------------------------------------------------
Gross Profit 0 0 0
Selling, General, and Administrative 0 0 0
--------------------------------------------------------
Income (Loss) From Operations 0 0 0
Other Income (Expense):
I/C Interest Income (Expense) 0 0 0
Interest Expense 0 0 0
Interest Income 0
Gain (loss) on Asset Disposition - 0 0
Other Expense 145,514 (10,889) 156,403
--------------------------------------------------------
Total Other (Expense) 145,514 (10,889) 156,403
Net Income (Loss) Before Bankruptcy
Administrative Expenses 145,514 (10,889) 156,403
Bankruptcy Administrative Expenses 0 0 0
--------------------------------------------------------
Net Income (Loss) 145,514 (10,889) 156,403
--------------------------------------------------------
</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
AUGUST 31, 1999 JULY 31, 1999
COMBINED COMBINED
FINAL FINAL CHANGE
------------------------------------------------------
<S> <C> <C> <C>
Sales 1,548,684 1,151,924 396,760
Cost of Sales 979,542 804,794 174,748
------------------------------------------------------
Gross Profit 569,142 347,130 222,012
Selling, General, and Administrative 493,914 499,952 (6,038)
------------------------------------------------------
Income (Loss) From Operations 75,228 (152,822) 228,050
Other Income (Expense):
I/C Interest Income (Expense) 0 0 0
Interest Expense (214,299) (216,381) 2,082
Interest Income 0 0 0
Gain (loss) on Asset Disposition (16,469) 35,757 (52,226)
Other Expense 145,514 (10,889) 156,403
------------------------------------------------------
Total Other (Expense) (85,254) (191,513) 106,259
Net Income (Loss) Before Bankruptcy
Administrative Expenses (10,026) (344,335) 334,309
Bankruptcy Administrative Expenses (115,000) (100,000) (15,000)
------------------------------------------------------
Net Income (Loss) (125,026) (444,335) 319,309
------------------------------------------------------
</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
AUGUST 31, 1999 JULY 31, 1999 CHANGE
--------------------- -------------------- -----------------
<S> <C> <C> <C>
Cash flows from operating activities:
Net loss ($125,026) ($444,335) $319,309
Adjustments to reconcile net loss to net cash
(used in) provided by operating activities:
Depreciation 53,530 56,408 (2,878)
Change in estimate of pre-petition construction claims (200,000) 0 (200,000)
(Gain) / Loss on sale of property and equipment 16,469 (35,757) 52,226
Change in certain assets & liabilities:
(Increase) decrease in:
Receivables, net 281,798 83,809 197,989
Costs in excess of billings (89,523) 371,397 (460,920)
Prepaids & other assets 42,464 44,363 (1,899)
Increase (decrease) in:
Accounts payable 222,463 (251,214) 473,677
Accrued expenses 85,915 101,452 (15,537)
Other net changes in assets and liabilities 35,723 (69,975) 105,698
--------------------- -------------------- -----------------
Total adjustments 448,839 300,483 148,356
--------------------- -------------------- -----------------
Net cash provided by (used in) operating activities 323,813 (143,852) 467,665
Cash flows from investing activities:
Proceeds from sale of equipment 26,595 36,734 (10,139)
Additions to property and equipment (12,212) (3,168) (9,044)
--------------------- -------------------- -----------------
Net cash provided by (used in) investing activities 14,383 33,566 (19,183)
Cash flows from financing and other activities:
Net proceeds (repayments) from revolver credit loan (429,775) (98,366) (331,409)
(Reduction) Increase of pre-petition liabilities 116,327 132,511 (16,184)
--------------------- -------------------- -----------------
Net cash provided by (used in) financing activities (313,448) 34,145 (347,593)
--------------------- -------------------- -----------------
Net increase (decrease) in cash 24,748 (76,141) 100,889
CASH AT BEGINNING OF PERIOD 84,890 161,031 (76,141)
--------------------- -------------------- -----------------
CASH AT END OF PERIOD $109,638 $84,890 $24,748
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</TABLE>
See accompanying notes to financial statement information
<PAGE>
EXHIBIT 99.1
Omega Environmental, Inc.
Debtor in Possession Case #97-06084
August 31, 1999 Financial Reporting Information
Notes to Financial Statement Information
Basis of Presentation
The financial statement information presented is unaudited and does not comply
with generally accepted accounting principles. Additionally, significant
estimates were used in the preparation of this financial statement information
and actual results may vary significantly from these estimates.
BNY Financial Corporation
As of August 31, 1999, the Company's borrowings from BNY Financial Corporation
("BNYFC") were $23,600,231. Omega negotiated continuance of debtor-in-possession
financing through October 31, 1999.
Costs and Earnings in Excess of Billing
The asset, "Costs and earnings in excess of billings" recorded on the
Environmental Services Division's balance sheet, represents estimated revenues
recognized in excess of amounts billed using the percentage of completion method
of contract accounting. In the past, as projects were completed and billed
significant write-offs of this asset were recorded in excess of reserves
provided. Management believes that as a result of improvements in project
management and time charging practices no material write-offs in excess of the
normal allocated reserves will be required in the future.
Accounts Receivable
Accounts receivable recorded on the Environmental Services Division's balance
sheet are primarily due from various State reimbursement programs for clean up
of leaking underground storage tanks. The collection period for these
receivables frequently exceeds 180 days. Due to the significant amount of time
required to collect these receivables, management is continually analyzing the
collectability of these accounts and estimated bad debts may be significantly in
excess of established reserves. The results of this analysis are not complete at
this time due to the lengthy collection time frame, and any adjustment may have
a material adverse effect on the financial statements.
<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.
During July 1999, an escrow account and certain accounts receivables related to
closed operations were transferred from ESD to the Discontinued Operation's
balance sheet totaling $20,861 and $410,215, respectively.
Accounts receivable recorded on the Corporate balance sheet of $478,000
represents funds held in escrow at Debtor's Bankruptcy Counsel as a result of
the Petroleum Services Division (PSD) Houston branch asset sale in December 1998
totaling $148,000. These funds are held in escrow pending the final
determination of the amount of liens asserted by Texas tax authorities. $275,000
represents amounts receivable from two insurance lawsuit settlements to be
collected in September 1999. The balance, $55,000, represents a receivable from
an investment to be collected in September 1999.
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 August was
$393,980.
Pre-Petition Estimated Construction Claims
Pre-Petition Construction Claims recorded on Discontinued Operation's balance
sheet decreased $200,000 in August 1999 due to a revision in the estimated
liability owed to the Company's surety.
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