<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) February 22, 1999
-----------------
OMEGA ENVIRONMENTAL, INC.
(EXACT NAME OF REGISTRANT AS SPECIFIED IN ITS CHARTER)
Commission File Number 0-20267
DELAWARE 91-1499751
(STATE OR OTHER JURISDICTION OF (I.R.S. EMPLOYER
INCORPORATION OR ORGANIZATION) IDENTIFICATION NO.)
550 KIRKLAND WAY, SUITE 200, KIRKLAND, WASHINGTON 98033
PO BOX 3005 BOTHELL, WASHINGTON 98041-3005
(ADDRESS OF PRINCIPAL EXECUTIVE OFFICES) (ZIP CODE)
425-739-2072
(REGISTRANT'S TELEPHONE NUMBER, INCLUDING AREA CODE)
--------------------------------------------------------------------------
11818 NORTH CREEK PARKWAY NORTH, SUITE 150, BOTHELL, WASHINGTON 98041-3005
(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 February 22, 1999, the Registrant filed unaudited financial
statement information as of and for each of the months ended
November 30, 1998 and October 31, 1998 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 November 30, 1998
and October 31, 1998 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: February 22, 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) (UNAUDITED) (UNAUDITED)
NOV. 30, 1998 OCT. 31, 1998 NOV. 30, 1998 OCT. 31, 1998
ESD ESD CHANGE PSD PSD CHANGE
------------------------------------------- ---------------------------------------
<S> <C> <C> <C> <C> <C> <C>
CURRENT ASSETS
Cash 42,977 51,514 (8,537) 61,764 33,400 28,364
Restricted cash held in escrow 2,732,721 2,732,634 87 -
Accounts receivable
A/R--trade 12,044,307 12,095,191 (50,884) 624,537 678,513 (53,976)
A/R--interco 865 865 - - - -
A/R--employees 4,883 8,551 (3,668) 9,450 9,561 (111)
A/R--supplemental 1,727,115 1,727,115 - -
A/R--misc. 12,078 12,078 - - - -
Allowance for doubtful accounts (2,128,460) (2,272,144) 143,684 (54,240) (64,359) 10,119
------------------------------------------- ---------------------------------------
Accounts receivable, net 11,660,788 11,571,656 89,132 579,747 623,715 (43,968)
------------------------------------------- ---------------------------------------
Costs and earnings in excess of billings 5,809,441 5,609,819 199,622 -
Prepaid expenses 58,078 57,420 658 58,823 64,085 (5,262)
Inventory - 1,824,979 1,853,020 (28,041)
Inventory reserve - (800,414) (782,690) (17,724)
------------------------------------------- ---------------------------------------
Inventory, net - - - 1,024,565 1,070,330 (45,765)
------------------------------------------- ---------------------------------------
Other current assets - -
------------------------------------------- ---------------------------------------
TOTAL CURRENT ASSETS 20,304,005 20,023,043 280,962 1,724,899 1,791,530 (66,631)
PROPERTY AND EQUIPMENT ------------------------------------------- ---------------------------------------
Field equipment 2,352,810 2,435,403 (82,593) 547,106 547,106 -
Automotive equipment 1,124,549 1,026,959 97,590 44,973 44,973 -
Office furniture and equipment 966,762 981,944 (15,182) 38,329 38,329 -
Leasehold improvements 107,729 93,223 14,506 30,895 30,895 -
------------------------------------------- ---------------------------------------
TOTAL PROPERTY & EQUIP., AT COST 4,551,850 4,537,529 14,321 661,303 661,303 -
Accum. Depreciation (3,282,510) (3,224,889) (57,621) (356,015) (345,710) (10,305)
------------------------------------------- ---------------------------------------
TOTAL PROPERTY & EQUIP., NET 1,269,340 1,312,640 (43,300) 305,288 315,593 (10,305)
------------------------------------------- ---------------------------------------
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 220,483 225,549 (5,066) - - -
Investment & Intercompany in Subsidiaires - - - -
------------------------------------------- ----------------------------------------
TOTAL ASSETS 21,796,254 21,563,658 232,596 2,030,187 2,107,123 (76,936)
------------------------------------------- ----------------------------------------
------------------------------------------- ----------------------------------------
POST PETITION CURRENT LIABILITIES
Accounts payable 850,822 819,921 30,901 103,986 38,437 65,549
Line of Credit -
Accrued expenses, excluding bankruptcy
costs 723,180 775,452 (52,272) 312,595 310,493 2,102
Accrued bankruptcy costs -
Estimated claims against cash held
in escrow 2,572,992 2,572,905 87 -
Intercompany - BNYFC 7,725,526 7,542,932 182,594 7,845,978 7,762,701 83,277
Intercompany payables - 4,919 (4,919) - 865 (865)
------------------------------------------- ----------------------------------------
TOTAL POST PETITION CURRENT LIABILITIES 11,872,520 11,716,129 156,391 8,262,559 8,112,496 150,063
Intercompany Notes Payable 8,741,768 8,741,768 - -
Pre Petition Liabilities 1,625,500 1,628,694 (3,194) 1,081,518 1,087,170 (5,652)
Pre Petition Estimated Construction Claims -
------------------------------------------- ----------------------------------------
TOTAL LIABILITIES 22,239,788 22,086,591 153,197 9,344,077 9,199,666 144,411
SHAREHOLDERS' EQUITY ------------------------------------------- ----------------------------------------
Common stock at par 3,371,172 3,371,172 -
Additional paid in capital 14,557,677 14,557,677 - 10,742,189 10,742,189 -
Treasury Stock A-P-I-C -
Retained earnings - prior (11,012,975) (11,012,975) - (14,767,222) (14,767,222) -
Y-T-D net income pre petition (8,531) (8,531) - (247,894) (247,894) -
Y-T-D net income post petition (3,979,705) (4,059,104) 79,399 (6,412,135) (6,190,788) (221,347)
------------------------------------------- ----------------------------------------
TOTAL SHAREHOLDERS' EQUITY (443,534) (522,933) 79,399 (7,313,890) (7,092,543) (221,347)
------------------------------------------- ----------------------------------------
TOTAL LIABILITIES & SHAREHOLDERS' EQUITY 21,796,254 21,563,658 232,596 2,030,187 2,107,123 (76,936)
------------------------------------------- ----------------------------------------
------------------------------------------- ----------------------------------------
</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)
(UNAUDITED) (UNAUDITED) NOV. 30, 1998 OCT. 31, 1998
NOV. 30, 1998 OCT. 31, 1998 CONTINUING CONTINUING
CORPORATE CORPORATE CHANGE OPERATIONS OPERATIONS CHANGE
------------------------------------------ ------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
CURRENT ASSETS
Cash 223,615 207,659 15,956 328,356 292,573 35,783
Restricted cash held in escrow - 2,732,721 2,732,634 87
Accounts receivable
A/R--trade 116,924 144,431 (27,507) 12,785,768 12,918,135 (132,367)
A/R--interco 4,919 (4,919) 865 5,784 (4,919)
A/R--employees - 14,333 18,112 (3,779)
A/R--supplemental - 1,727,115 1,727,115 -
A/R--misc. 1,076,094 1,076,094 - 1,088,172 1,088,172 -
Allowance for doubtful accounts (1,138,466) (1,138,466) - (3,321,166) (3,474,969) 153,803
------------------------------------------ ------------------------------------------
Accounts receivable, net 54,552 86,978 (32,426) 12,295,087 12,282,349 12,738
------------------------------------------ ------------------------------------------
Costs and earnings in excess of billings - 5,809,441 5,609,819 199,622
Prepaid expenses 360,919 407,576 (46,657) 477,820 529,081 (51,261)
Inventory - 1,824,979 1,853,020 (28,041)
Inventory reserve - (800,414) (782,690) (17,724)
------------------------------------------ ------------------------------------------
Inventory, net - - - 1,024,565 1,070,330 (45,765)
------------------------------------------ ------------------------------------------
Other current assets - - - -
------------------------------------------ ------------------------------------------
TOTAL CURRENT ASSETS 639,086 702,213 (63,127) 22,667,990 22,516,786 151,204
PROPERTY AND EQUIPMENT ------------------------------------------ ------------------------------------------
Field equipment - 2,899,916 2,982,509 (82,593)
Automotive equipment - 1,169,522 1,071,932 97,590
Office furniture and equipment 125,959 125,959 - 1,131,050 1,146,232 (15,182)
Leasehold improvements - - - 138,624 124,118 14,506
------------------------------------------ ------------------------------------------
TOTAL PROPERTY & EQUIP., AT COST 125,959 125,959 - 5,339,112 5,324,791 14,321
Accum. Depreciation (109,176) (108,233) (943) (3,747,701) (3,678,832) (68,869)
------------------------------------------ ------------------------------------------
TOTAL PROPERTY & EQUIP., NET 16,783 17,726 (943) 1,591,411 1,645,959 (54,548)
------------------------------------------ ------------------------------------------
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 129,907 129,907 - 350,390 355,456 (5,066)
Investment & Intercompany in Subsidiaries 74,399,948 74,399,948 - 74,399,948 74,399,948 -
------------------------------------------ ------------------------------------------
TOTAL ASSETS 75,185,724 75,249,794 (64,070) 99,012,165 98,920,575 91,590
------------------------------------------ ------------------------------------------
------------------------------------------ ------------------------------------------
POST PETITION CURRENT LIABILITIES
Accounts payable 18,120 73,209 (55,089) 972,928 931,567 41,361
Line of Credit 22,168,024 21,760,531 407,493 22,168,024 21,760,531 407,493
Accrued expenses, excluding bankruptcy
costs 418,996 401,369 17,627 1,454,771 1,487,314 (32,543)
Accrued bankruptcy costs 1,975,104 1,832,562 142,542 1,975,104 1,832,562 142,542
Estimated claims against cash held
in escrow - 2,572,992 2,572,905 87
Intercompany - BNYFC (18,391,915) (18,134,797) (257,118) (2,820,411) (2,829,164) 8,753
Intercompany payables 865 - 865 865 5,784 (4,919)
------------------------------------------ ------------------------------------------
TOTAL POST PETITION CURRENT LIABILITIES 6,189,194 5,932,874 256,320 26,324,273 25,761,499 562,774
Intercompany Notes Payable - 8,741,768 8,741,768
Pre Petition Liabilities 2,530,451 2,530,451 - 5,237,469 5,246,315 (8,846)
Pre Petition Estimated Construction Claims - - - -
----------------------------------------- -----------------------------------------
TOTAL LIABILITIES 8,719,645 8,463,325 256,320 40,303,510 39,749,582 553,928
SHAREHOLDERS' EQUITY ------------------------------------------ ------------------------------------------
Common stock at par 121,289 121,289 - 3,492,461 3,492,461 -
Additional paid in capital 128,204,630 128,204,630 - 153,504,496 153,504,496 -
Treasury Stock A-P-I-C (562,506) (562,506) - (562,506) (562,506) -
Retained earnings - prior (49,321,103) (49,321,103) - (75,101,300) (75,101,300) -
Y-T-D net income pre petition (895,498) (895,498) - (1,151,923) (1,151,923) -
Y-T-D net income post petition (11,080,733) (10,760,343) (320,390) (21,472,573) (21,010,235) (462,338)
------------------------------------------ ------------------------------------------
TOTAL SHAREHOLDERS' EQUITY 66,466,079 66,786,469 (320,390) 58,708,655 59,170,993 (462,338)
------------------------------------------ ------------------------------------------
------------------------------------------ ------------------------------------------
TOTAL LIABILITIES & SHAREHOLDERS' EQUITY 75,185,724 75,249,794 (64,070) 99,012,165 98,920,575 91,590
------------------------------------------ ------------------------------------------
------------------------------------------ ------------------------------------------
</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) (UNAUDITED) (UNAUDITED)
NOV. 30, 1998 OCT. 31, 1998 NOV. 30, 1998 OCT. 31, 1998
DISCONTINUED DISCONTINUED COMBINED COMBINED
OPERATIONS OPERATIONS CHANGE FINAL FINAL CHANGE
-------------------------------------- ----------------------------------------
<S> <C> <C> <C> <C> <C> <C>
CURRENT ASSETS
Cash - - - 328,356 292,573 35,783
Restricted cash held in escrow - 2,732,721 2,732,634 87
Accounts receivable
A/R--trade 5,073,027 5,082,108 (9,081) 17,858,795 18,000,243 (141,448)
A/R--interco - - - - - -
A/R--employees - 14,333 18,112 (3,779)
A/R--supplemental - 1,727,115 1,727,115 -
A/R--misc. 33,806 33,806 - 1,121,978 1,121,978 -
Allowance for doubtful accounts (3,263,817) (3,263,817) - (6,584,983) (6,738,786) 153,803
-------------------------------------- ----------------------------------------
Accounts receivable, net 1,843,016 1,852,097 (9,081) 14,137,238 14,128,662 8,576
-------------------------------------- ----------------------------------------
Costs and earnings in excess of billings - 5,809,441 5,609,819 199,622
Prepaid expenses - 477,820 529,081 (51,261)
Inventory - 1,824,979 1,853,020 (28,041)
Inventory reserve - (800,414) (782,690) (17,724)
-------------------------------------- ----------------------------------------
Inventory, net - - - 1,024,565 1,070,330 (45,765)
-------------------------------------- ----------------------------------------
Other current assets 10,000 10,000 - 10,000 10,000 -
-------------------------------------- ----------------------------------------
TOTAL CURRENT ASSETS 1,853,016 1,862,097 (9,081) 24,520,141 24,373,099 147,042
PROPERTY AND EQUIPMENT -------------------------------------- ----------------------------------------
Field equipment 1,000 1,000 - 2,900,916 2,983,509 (82,593)
Automotive equipment - - - 1,169,522 1,071,932 97,590
Office furniture and equipment - - - 1,131,050 1,146,232 (15,182)
Leasehold improvements - - - 138,624 124,118 14,506
-------------------------------------- ----------------------------------------
TOTAL PROPERTY & EQUIP., AT COST 1,000 1,000 - 5,340,112 5,325,791 14,321
Accum. Depreciation - - - (3,747,701) (3,678,832) (68,869)
-------------------------------------- ----------------------------------------
TOTAL PROPERTY & EQUIP., NET 1,000 1,000 - 1,592,411 1,646,959 (54,548)
-------------------------------------- ----------------------------------------
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 - - - 350,390 355,456 (5,066)
Investment & Intercompany in Subsidiaires - 39,665 39,665 -
-------------------------------------- ----------------------------------------
TOTAL ASSETS 1,854,016 1,863,097 (9,081) 26,505,033 26,417,605 87,428
-------------------------------------- ----------------------------------------
-------------------------------------- ----------------------------------------
POST PETITION CURRENT LIABILITIES
Accounts payable - - - 972,928 931,567 41,361
Line of Credit 22,168,024 21,760,531 407,493
Accrued expenses, excluding bankruptcy
costs - - - 1,454,771 1,487,313 (32,542)
Accrued bankruptcy costs 1,975,104 1,832,562 142,542
Estimated claims against cash held
in escrow 2,572,992 2,572,905 87
Intercompany - BNYFC 2,820,411 2,829,165 (8,754) - - -
Intercompany payables - - - - - -
-------------------------------------- ----------------------------------------
TOTAL POST PETITION CURRENT LIABILITIES 2,820,411 2,829,165 (8,754) 29,143,819 28,584,878 558,941
Intercompany Notes Payable 2,535,455 2,535,455 -
Pre Petition Liabilities 10,814,353 10,814,353 - 16,051,822 16,060,668 (8,846)
Pre Petition Estimated Construction Claims 2,404,000 2,404,000 - 2,404,000 2,404,000 -
-------------------------------------- ----------------------------------------
TOTAL LIABILITIES 18,574,219 18,582,973 (8,754) 47,599,641 47,049,546 550,093
SHAREHOLDERS' EQUITY -------------------------------------- ----------------------------------------
Common stock at par 2,082,948 2,082,948 - 121,289 121,289 -
Additional paid in capital 28,604,818 28,604,818 - 124,480,374 124,480,374 -
Treasury Stock A-P-I-C - (562,506) (562,506) -
Retained earnings - prior (36,904,145) (36,904,145) - (112,005,445) (112,005,445) -
Y-T-D net income pre petition (694,013) (694,013) - (1,845,936) (1,845,936) -
Y-T-D net income post petition (9,809,811) (9,809,484) (327) (31,282,384) (30,819,719) (462,665)
-------------------------------------- ----------------------------------------
TOTAL SHAREHOLDERS' EQUITY (16,720,203) (16,719,876) (327) (21,094,608) (20,631,943) (462,665)
-------------------------------------- ----------------------------------------
-------------------------------------- ----------------------------------------
TOTAL LIABILITIES & SHAREHOLDERS' EQUITY 1,854,016 1,863,097 (9,081) 26,505,033 26,417,605 87,428
-------------------------------------- ----------------------------------------
-------------------------------------- ----------------------------------------
</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
NOV. 30, 1998 OCT. 31, 1998 NOV. 30, 1998 OCT. 31, 1998
ESD ESD CHANGE PSD PSD CHANGE
------------------------------------------- -----------------------------------------
<S> <C> <C> <C> <C> <C> <C>
Sales 1,458,584 1,673,351 (214,767) 272,586 286,854 (14,268)
Cost of Sales 930,730 1,186,905 (256,175) 297,623 267,859 29,764
------------------------------------------- -----------------------------------------
Gross Profit 527,854 486,446 41,408 (25,037) 18,995 (44,032)
Selling, General, and Administrative 380,772 405,170 (24,398) 124,707 104,348 20,359
------------------------------------------- -----------------------------------------
Income (Loss) From Operations 147,082 81,276 65,806 (149,744) (85,353) (64,391)
Other Income(Expense):
I/C Interest Income (Expense) (67,030) (66,974) (56) (68,369) (68,167) (202)
Interest Expense - - - -
Interest Income - - - -
Gain (loss) on Asset Disposition (909) - (909) (3,014) 32,534 (35,548)
Other Expense 256 (577) 833 (220) 755 (975)
------------------------------------------- -----------------------------------------
Total Other (Expense) (67,683) (67,551) (132) (71,603) (34,878) (36,725)
Net Income (Loss) Before Bankruptcy
Administrative Expenses 79,399 13,725 65,674 (221,347) (120,231) (101,116)
Bankruptcy Administrative Expenses -
------------------------------------------- -----------------------------------------
Net Income (Loss) 79,399 13,725 65,674 (221,347) (120,231) (101,116)
------------------------------------------- -----------------------------------------
------------------------------------------- -----------------------------------------
</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 NOV. 30, 1998 OCT. 31, 1998
NOV. 30, 1998 OCT. 31, 1998 CONTINUING CONTINUING
CORPORATE CORPORATE CHANGE OPERATIONS OPERATIONS CHANGE
------------------------------------------- ------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
Sales - - - 1,731,170 1,960,205 (229,035)
Cost of Sales - - - 1,228,353 1,454,764 (226,411)
------------------------------------------- ------------------------------------------
Gross Profit - - - 502,817 505,441 (2,624)
Selling, General, and Administrative 107,235 100,017 7,218 612,714 609,535 3,179
------------------------------------------- ------------------------------------------
Income (Loss) From Operations (107,235) (100,017) (7,218) (109,897) (104,094) (5,803)
Other Income(Expense):
I/C Interest Income (Expense) 135,399 135,141 258 - - -
Interest Expense (190,675) (199,659) 8,984 (190,675) (199,659) 8,984
Interest Income - - - -
Gain (loss) on Asset Disposition - (19,487) 19,487 (3,923) 13,047 (16,970)
Other Expense - (25,000) 25,000 36 (24,822) 24,858
------------------------------------------- ------------------------------------------
Total Other (Expense) (55,276) (109,005) 53,729 (194,562) (211,434) 16,872
Net Income (Loss) Before Bankruptcy
Administrative Expenses (162,511) (209,022) 46,511 (304,459) (315,528) 11,069
Bankruptcy Administrative Expenses (157,879) (685,352) 527,473 (157,879) (685,352) 527,473
------------------------------------------- ------------------------------------------
Net Income (Loss) (320,390) (894,374) 573,984 (462,338) (1,000,880) 538,542
------------------------------------------- ------------------------------------------
------------------------------------------- ------------------------------------------
</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
NOV. 30, 1998 OCT. 31, 1998 NOV. 30, 1998 OCT. 31, 1998
DISCONTINUED DISCONTINUED COMBINED COMBINED
OPERATIONS OPERATIONS CHANGE OPERATIONS OPERATIONS CHANGE
------------------------------------------- ------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
Sales - 1,731,170 1,960,205 (229,035)
Cost of Sales - 1,228,353 1,454,764 (226,411)
------------------------------------------- ------------------------------------------
Gross Profit - - - 502,817 505,441 (2,624)
Selling, General, and Administrative - 612,714 609,535 3,179
------------------------------------------- ------------------------------------------
Income (Loss) From Operations - - - (109,897) (104,094) (5,803)
Other Income(Expense):
I/C Interest Income (Expense) - - - -
Interest Expense - (190,675) (199,659) 8,984
Interest Income - - - -
Gain (loss) on Asset Disposition - (3,923) 13,047 (16,970)
Other Expense (327) (245,544) 245,217 (291) (270,366) 270,075
------------------------------------------- ------------------------------------------
Total Other (Expense) (327) (245,544) 245,217 (194,889) (456,978) 262,089
Net Income (Loss) Before Bankruptcy
Administrative Expenses (327) (245,544) 245,217 (304,786) (561,072) 256,286
Bankruptcy Administrative Expenses - (157,879) (685,352) 527,473
------------------------------------------- ------------------------------------------
Net Income (Loss) (327) (245,544) 245,217 (462,665) (1,246,424) 783,759
------------------------------------------- ------------------------------------------
------------------------------------------- ------------------------------------------
</TABLE>
See accompanying notes to financial statement information
<PAGE>
OMEGA ENVIRONMENTAL, INC.
DEBTOR IN POSSESSION CASE #97-06084
COMPARATIVE COMBINED STATEMENT OF CASH FLOWS INFORMATION
<TABLE>
<CAPTION>
(UNAUDITED) (UNAUDITED)
MONTH ENDED MONTH ENDED
NOV. 30, 1998 OCT. 31, 1998 CHANGE
------------- ------------- -----------
<S> <C> <C> <C>
Cash flows from operating activities:
Net loss ($462,665) $(1,246,424) $783,759
Adjustments to reconcile net loss to net cash (used in)
provided by operating activities:
Depreciation 78,677 71,100 7,577
(Gain)/Loss on sale of property and equipment (3,923) 13,047 (16,970)
Change in certain assets & liabilities:
(Increase) decrease in:
Receivables, net (8,576) 1,091,360 (1,099,936)
Costs in excess of billings (199,622) (349,914) 150,292
Inventory, net 45,765 22,677 23,088
Prepaids & other assets 51,261 5,003 46,258
Increase (decrease) in:
Accounts payable 41,361 (37,883) 79,244
Accrued expenses 110,000 843,405 (733,405)
Other net changes in assets and liabilities 5,066 5,912 (846)
Total adjustments 120,009 1,664,707 (1,544,698)
------------- ------------- -----------
Net cash provided by (used in) operating activities (342,656) 418,283 (760,939)
------------- ------------- -----------
Cash flows from investing activities :
Additions to property and equipment (20,208) (5,822) (14,386)
------------- ------------- -----------
Net cash provided by (used in) investing activities (20,208) (5,822) (14,386)
------------- ------------- -----------
Cash flows from financing and other activities:
Net proceeds (repayments) from revolver credit loan 407,493 (227,970) 635,463
Reduction of pre-petition liabilities (8,846) (10,790) 1,944
Net cash provided by (used in) financing activities 398,647 (238,760) 637,407
------------- ------------- -----------
Net increase (decrease) in cash 35,783 173,701 (137,918)
------------- ------------- -----------
CASH AT BEGINNING OF PERIOD 292,573 118,872 173,701
------------- ------------- -----------
CASH AT END OF PERIOD $328,356 $292,573 $35,783
------------- ------------- -----------
------------- ------------- -----------
</TABLE>
See accompanying notes to financial statement information.
<PAGE>
EXHIBIT 99.1
Omega Environmental, Inc.
Debtor in Possession Case #97-06084
November 30, 1998 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 November 30, 1998, the Company's borrowings from BNY Financial
Corporation ("BNYFC") were $22,168,024. In June, the Company successfully
negotiated with BNYFC for continuance of debtor-in-possession financing
through December 31, 1998.
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. Management is in the process of
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 and any adjustment may have a material adverse
effect on the financial statements.
Accounts receivable recorded on the Discontinued Operation's balance sheet
represents amounts recorded as due from customers in the company's
discontinued construction activities. 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.
