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<PAGE>
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of The Securities Exchange Act of 1934
Date of Report (Date of earliest event reported) June 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 June 23, 1999, the Registrant filed unaudited financial
statement information as of and for each of the months ended March
31, 1999 and February 28, 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 March 31, 1999 and
February 28, 1999 with related Notes to Financial
Statement Information.
<PAGE>
SIGNATURES
Pursuant to the requirements of the Securities and Exchange Act of 1934, the
Registrant has duly caused this report to be signed on its behalf by the
undersigned hereunto duly authorized.
OMEGA ENVIRONMENTAL, INC.
(Registrant)
Date: June 23, 1999 /s/ Donald E. Condit
------------------------------------------
Donald E. Condit
Chief Financial Officer
<PAGE>
EXHIBIT 99.1
Omega Environmental, Inc.
Debtor In Posession Case #97-06084
Comparative Balance Sheet Information
<TABLE>
<CAPTION>
(unaudited) (unaudited)
March 31, 1999 Feb. 28, 1999
ESD ESD Change
-----------------------------------------------------
<S> <C> <C> <C>
CURRENT ASSETS
Cash 66,767 5,037 61,730
Restricted cash held in escrow 2,745,453 2,740,747 4,706
Accounts receivable
A/R--trade 11,540,162 11,875,155 (334,993)
A/R--interco 4,211 4,211
A/R--employees 4,658 3,420 1,238
A/R--supplemental 1,367,675 1,367,675 -
A/R--misc. 12,078 12,078 -
Allowance for doubtful accounts (1,805,572) (1,812,085) 6,513
-----------------------------------------------------
Accounts receivable, net 11,123,212 11,446,243 (323,031)
-----------------------------------------------------
Costs and earnings in excess of billings 5,110,554 5,189,003 (78,449)
Prepaid expenses 40,430 53,354 (12,924)
Inventory -
Inventory reserve -
-----------------------------------------------------
Inventory, net - - -
-----------------------------------------------------
Other current assets -
-----------------------------------------------------
TOTAL CURRENT ASSETS 19,086,416 19,434,384 (347,968)
-----------------------------------------------------
PROPERTY AND EQUIPMENT
Field equipment 2,358,695 2,355,928 2,767
Automotive equipment 1,124,549 1,124,549 -
Office furniture and equipment 963,283 973,265 (9,982)
Leasehold improvements 107,729 107,729 -
-----------------------------------------------------
TOTAL PROPERTY & EQUIP., AT COST 4,554,256 4,561,471 (7,215)
Accum. Depreciation (3,503,840) (3,455,880) (47,960)
-----------------------------------------------------
TOTAL PROPERTY & EQUIP., NET 1,050,416 1,105,591 (55,175)
-----------------------------------------------------
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 109,047 221,324 (112,277)
Investment & Intercompany in Subsidiaires -
-----------------------------------------------------
TOTAL ASSETS 20,248,305 20,763,725 (515,420)
-----------------------------------------------------
-----------------------------------------------------
POST PETITION CURRENT LIABILITIES
Accounts payable 514,258 452,559 61,699
Line of Credit
Accrued expenses, excluding bankruptcy costs 613,838 593,566 20,272
Accrued bankruptcy costs
Estimated claims against cash held in escrow 2,583,956 2,579,250 4,706
Intercompany - BNYFC 7,615,645 7,832,953 (217,308)
Intercompany payables -
-----------------------------------------------------
TOTAL POST PETITION CURRENT LIABILITIES 11,327,697 11,458,328 (130,631)
Intercompany Notes Payable 9,202,397 9,005,048 197,349
Pre Petition Liabilities 969,759 1,314,694 (344,935)
Pre Petition Estimated Construction Claims
-----------------------------------------------------
TOTAL LIABILITIES 21,499,853 21,778,070 (278,217)
-----------------------------------------------------
SHAREHOLDERS' EQUITY
Common stock at par
Additional paid in capital 14,557,677 14,557,677 -
Treasury Stock A-P-I-C
Retained earnings - prior (11,012,975) (11,012,975) -
Y-T-D net income pre petition (8,531) (8,531) -
Y-T-D net income post petition (4,787,719) (4,550,516) (237,203)
-----------------------------------------------------
TOTAL SHAREHOLDERS' EQUITY (1,251,548) (1,014,345) (237,203)
-----------------------------------------------------
TOTAL LIABILITIES & SHAREHOLDERS' EQUITY 20,248,305 20,763,725 (515,420)
-----------------------------------------------------
-----------------------------------------------------
<CAPTION>
(unaudited) (unaudited)
March 31, 1999 Feb. 28, 1999
PSD PSD Change
--------------------------------------------------
<S> <C> <C> <C>
CURRENT ASSETS
Cash 14,228 21,319 (7,091)
Restricted cash held in escrow -
Accounts receivable
A/R--trade 66,442 147,145 (80,703)
A/R--interco - - -
A/R--employees - 1,231 (1,231)
A/R--supplemental -
A/R--misc. 7,846 291,514 (283,668)
Allowance for doubtful accounts (36,462) (42,748) 6,286
--------------------------------------------------
Accounts receivable, net 37,826 397,142 (359,316)
--------------------------------------------------
Costs and earnings in excess of billings -
Prepaid expenses 37,304 35,431 1,873
Inventory - - -
Inventory reserve - - -
--------------------------------------------------
Inventory, net - - -
--------------------------------------------------
Other current assets -
--------------------------------------------------
TOTAL CURRENT ASSETS 89,358 453,892 (364,534)
--------------------------------------------------
PROPERTY AND EQUIPMENT
Field equipment - - -
Automotive equipment - - -
Office furniture and equipment - - -
Leasehold improvements - - -
--------------------------------------------------
TOTAL PROPERTY & EQUIP., AT COST - - -
Accum. Depreciation - - -
--------------------------------------------------
TOTAL PROPERTY & EQUIP., NET - - -
--------------------------------------------------
Long-term accounts receivable - Other (Texas) - - -
Reserve for Long-term accounts receivable -
--------------------------------------------------
Long-term accounts receviable - Other (Texas), net - - -
Other Assets - - -
Investment & Intercompany in Subsidiaires - - -
--------------------------------------------------
TOTAL ASSETS 89,358 453,892 (364,534)
--------------------------------------------------
--------------------------------------------------
POST PETITION CURRENT LIABILITIES
Accounts payable 11,631 19,891 (8,260)
Line of Credit -
Accrued expenses, excluding bankruptcy costs 40,594 57,016 (16,422)
Accrued bankruptcy costs -
Estimated claims against cash held in escrow -
Intercompany - BNYFC 7,569,671 7,806,377 (236,706)
Intercompany payables - - -
--------------------------------------------------
TOTAL POST PETITION CURRENT LIABILITIES 7,621,896 7,883,284 (261,388)
Intercompany Notes Payable -
Pre Petition Liabilities 949,872 949,872 -
Pre Petition Estimated Construction Claims -
--------------------------------------------------
TOTAL LIABILITIES 8,571,768 8,833,156 (261,388)
--------------------------------------------------
SHAREHOLDERS' EQUITY
Common stock at par 3,371,172 3,371,172 -
Additional paid in capital 10,742,189 10,742,189 -
Treasury Stock A-P-I-C -
Retained earnings - prior (14,767,222) (14,767,222) -
Y-T-D net income pre petition (247,894) (247,894) -
Y-T-D net income post petition (7,580,655) (7,477,509) (103,146)
--------------------------------------------------
TOTAL SHAREHOLDERS' EQUITY (8,482,410) (8,379,264) (103,146)
--------------------------------------------------
TOTAL LIABILITIES & SHAREHOLDERS' EQUITY 89,358 453,892 (364,534)
--------------------------------------------------
--------------------------------------------------
</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)
March 31, 1999 Feb. 28, 1999
Corporate Corporate Change
----------------------------------------------------
<S> <C> <C> <C>
CURRENT ASSETS
Cash 135,413 39,806 95,607
Restricted cash held in escrow -
Accounts receivable
A/R--trade - - -
A/R--interco -
A/R--employees - - -
A/R--supplemental - - -
A/R--misc. 1,224,094 1,219,094 5,000
Allowance for doubtful accounts (1,076,094) (1,076,094) -
----------------------------------------------------
Accounts receivable, net 148,000 143,000 5,000
----------------------------------------------------
Costs and earnings in excess of billings -
Prepaid expenses 126,460 159,698 (33,238)
Inventory -
Inventory reserve -
----------------------------------------------------
Inventory, net - - -
----------------------------------------------------
Other current assets -
----------------------------------------------------
TOTAL CURRENT ASSETS 409,873 342,504 67,369
----------------------------------------------------
PROPERTY AND EQUIPMENT
Field equipment -
Automotive equipment -
Office furniture and equipment 41,050 41,050 -
Leasehold improvements - - -
----------------------------------------------------
TOTAL PROPERTY & EQUIP., AT COST 41,050 41,050 -
Accum. Depreciation (33,851) (33,257) (594)
----------------------------------------------------
TOTAL PROPERTY & EQUIP., NET 7,199 7,793 (594)
----------------------------------------------------
Long-term accounts receivable - Other (Texas) - - -
Reserve for Long-term accounts receivable -
----------------------------------------------------
Long-term accounts receviable - Other (Texas), net - - -
Other Assets 41,622 41,622 -
Investment & Intercompany in Subsidiaires 74,375,431 74,375,431 -
----------------------------------------------------
TOTAL ASSETS 74,834,125 74,767,350 66,775
----------------------------------------------------
----------------------------------------------------
POST PETITION CURRENT LIABILITIES
Accounts payable 34,732 68,243 (33,511)
Line of Credit 23,301,721 23,278,363 23,358
Accrued expenses, excluding bankruptcy costs 26,497 42,905 (16,408)
Accrued bankruptcy costs 1,226,004 1,487,967 (261,963)
Estimated claims against cash held in escrow -
Intercompany - BNYFC (17,912,802) (18,377,094) 464,292
Intercompany payables 4,211 - 4,211
----------------------------------------------------
TOTAL POST PETITION CURRENT LIABILITIES 6,680,363 6,500,384 179,979
Intercompany Notes Payable -
Pre Petition Liabilities 2,637,103 2,637,103 -
Pre Petition Estimated Construction Claims -
----------------------------------------------------
TOTAL LIABILITIES 9,317,466 9,137,487 179,979
----------------------------------------------------
SHAREHOLDERS' EQUITY
Common stock at par 121,289 121,289 -
Additional paid in capital 128,204,630 128,204,630 -
Treasury Stock A-P-I-C (562,506) (562,506) -
Retained earnings - prior (49,321,103) (49,321,103) -
Y-T-D net income pre petition (895,498) (895,498) -
Y-T-D net income post petition (12,030,153) (11,916,949) (113,204)
----------------------------------------------------
TOTAL SHAREHOLDERS' EQUITY 65,516,659 65,629,863 (113,204)
----------------------------------------------------
TOTAL LIABILITIES & SHAREHOLDERS' EQUITY 74,834,125 74,767,350 66,775
----------------------------------------------------
----------------------------------------------------
<CAPTION>
(unaudited) (unaudited)
March 31, 1999 Feb. 28, 1999
Continuing Continuing
Operations Operations Change
-------------------------------------------------
<S> <C> <C> <C>
CURRENT ASSETS
Cash 216,408 66,162 150,246
Restricted cash held in escrow 2,745,453 2,740,747 4,706
Accounts receivable
A/R--trade 11,606,604 12,022,300 (415,696)
A/R--interco 4,211 - 4,211
A/R--employees 4,658 4,651 7
A/R--supplemental 1,367,675 1,367,675 -
A/R--misc. 1,244,018 1,522,686 (278,668)
Allowance for doubtful accounts (2,918,128) (2,930,927) 12,799
-------------------------------------------------
Accounts receivable, net 11,309,038 11,986,385 (677,347)
-------------------------------------------------
Costs and earnings in excess of billings 5,110,554 5,189,003 (78,449)
Prepaid expenses 204,194 248,483 (44,289)
Inventory - - -
Inventory reserve - - -
-------------------------------------------------
Inventory, net - - -
-------------------------------------------------
Other current assets - - -
-------------------------------------------------
TOTAL CURRENT ASSETS 19,585,647 20,230,780 (645,133)
-------------------------------------------------
PROPERTY AND EQUIPMENT
Field equipment 2,358,695 2,355,928 2,767
Automotive equipment 1,124,549 1,124,549 -
Office furniture and equipment 1,004,333 1,014,315 (9,982)
Leasehold improvements 107,729 107,729 -
-------------------------------------------------
TOTAL PROPERTY & EQUIP., AT COST 4,595,306 4,602,521 (7,215)
Accum. Depreciation (3,537,691) (3,489,137) (48,554)
-------------------------------------------------
TOTAL PROPERTY & EQUIP., NET 1,057,615 1,113,384 (55,769)
-------------------------------------------------
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 150,669 262,946 (112,277)
Investment & Intercompany in Subsidiaires 74,375,431 74,375,431 -
-------------------------------------------------
TOTAL ASSETS 95,171,788 95,984,967 (813,179)
-------------------------------------------------
-------------------------------------------------
POST PETITION CURRENT LIABILITIES
Accounts payable 560,621 540,693 19,928
Line of Credit 23,301,721 23,278,363 23,358
Accrued expenses, excluding bankruptcy costs 680,929 684,712 (3,783)
Accrued bankruptcy costs 1,226,004 1,496,742 (270,738)
Estimated claims against cash held in escrow 2,583,956 2,579,250 4,706
Intercompany - BNYFC (2,727,486) (2,737,764) 10,278
Intercompany payables 4,211 - 4,211
-------------------------------------------------
TOTAL POST PETITION CURRENT LIABILITIES 25,629,956 25,841,996 (212,040)
Intercompany Notes Payable 9,202,397 9,005,048 197,349
Pre Petition Liabilities 4,556,734 4,901,669 (344,935)
Pre Petition Estimated Construction Claims - - -
-------------------------------------------------
TOTAL LIABILITIES 39,389,087 39,748,713 (359,626)
-------------------------------------------------
SHAREHOLDERS' EQUITY
Common stock at par 3,492,461 3,492,461 -
Additional paid in capital 153,504,496 153,504,496 -
Treasury Stock A-P-I-C (562,506) (562,506) -
Retained earnings - prior (75,101,300) (75,101,300) -
Y-T-D net income pre petition (1,151,923) (1,151,923) -
Y-T-D net income post petition (24,398,527) (23,944,974) (453,553)
-------------------------------------------------
TOTAL SHAREHOLDERS' EQUITY 55,782,701 56,236,254 (453,553)
-------------------------------------------------
TOTAL LIABILITIES & SHAREHOLDERS' EQUITY 95,171,788 95,984,967 (813,179)
-------------------------------------------------
-------------------------------------------------
</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)
March 31, 1999 Feb. 28, 1999
Discontinued Discontinued
Operations Operations Change
-----------------------------------------------------
<C> <C> <C>
CURRENT ASSETS
Cash - - -
Restricted cash held in escrow -
Accounts receivable
A/R--trade 4,369,400 4,773,979 (404,579)
A/R--interco - - -
A/R--employees -
A/R--supplemental -
A/R--misc. 28,906 33,806 (4,900)
Allowance for doubtful accounts (2,889,445) (3,258,663) 369,218
-----------------------------------------------------
Accounts receivable, net 1,508,861 1,549,122 (40,261)
-----------------------------------------------------
Costs and earnings in excess of billings -
Prepaid expenses -
Inventory -
Inventory reserve -
-----------------------------------------------------
Inventory, net - - -
-----------------------------------------------------
Other current assets 10,000 10,000 -
-----------------------------------------------------
TOTAL CURRENT ASSETS 1,518,861 1,559,122 (40,261)
-----------------------------------------------------
PROPERTY AND EQUIPMENT
Field equipment 1,000 1,000 -
Automotive equipment - - -
Office furniture and equipment - - -
Leasehold improvements - - -
-----------------------------------------------------
TOTAL PROPERTY & EQUIP., AT COST 1,000 1,000 -
Accum. Depreciation - - -
-----------------------------------------------------
TOTAL PROPERTY & EQUIP., NET 1,000 1,000 -
-----------------------------------------------------
Long-term accounts receivable - Other (Texas) - - -
Reserve for Long-term accounts receivable -
-----------------------------------------------------
Long-term accounts receviable - Other (Texas), net - - -
Other Assets - - -
Investment & Intercompany in Subsidiaires -
-----------------------------------------------------
TOTAL ASSETS 1,519,861 1,560,122 (40,261)
-----------------------------------------------------
-----------------------------------------------------
POST PETITION CURRENT LIABILITIES
Accounts payable - - -
Line of Credit
Accrued expenses, excluding bankruptcy costs - - -
Accrued bankruptcy costs
Estimated claims against cash held in escrow
Intercompany - BNYFC 2,727,486 2,737,764 (10,278)
Intercompany payables - - -
-----------------------------------------------------
TOTAL POST PETITION CURRENT LIABILITIES 2,727,486 2,737,764 (10,278)
Intercompany Notes Payable 2,074,827 2,272,176 (197,349)
Pre Petition Liabilities 11,274,981 11,077,632 197,349
Pre Petition Estimated Construction Claims 2,000,000 2,000,000 -
-----------------------------------------------------
TOTAL LIABILITIES 18,077,294 18,087,572 (10,278)
-----------------------------------------------------
SHAREHOLDERS' EQUITY
Common stock at par 2,082,948 2,082,948 -
Additional paid in capital 28,604,818 28,604,818 -
Treasury Stock A-P-I-C - - -
Retained earnings - prior (36,904,145) (36,904,145) -
Y-T-D net income pre petition (694,013) (694,013) -
Y-T-D net income post petition (9,647,041) (9,617,058) (29,983)
-----------------------------------------------------
TOTAL SHAREHOLDERS' EQUITY (16,557,433) (16,527,450) (29,983)
-----------------------------------------------------
TOTAL LIABILITIES & SHAREHOLDERS' EQUITY 1,519,861 1,560,122 (40,261)
-----------------------------------------------------
-----------------------------------------------------
<CAPTION>
(unaudited) (unaudited)
March 31, 1999 Feb. 28, 1999
Combined Combined
Final Final Change
--------------------------------------------------
<C> <C> <C>
CURRENT ASSETS
Cash 216,408 66,162 150,246
Restricted cash held in escrow 2,745,453 2,740,747 4,706
Accounts receivable
A/R--trade 15,976,004 16,796,279 (820,275)
A/R--interco - - -
A/R--employees 4,658 4,651 7
A/R--supplemental 1,367,675 1,367,675 -
A/R--misc. 1,272,924 1,556,492 (283,568)
Allowance for doubtful accounts (5,807,573) (6,189,590) 382,017
--------------------------------------------------
Accounts receivable, net 12,813,688 13,535,507 (721,819)
--------------------------------------------------
Costs and earnings in excess of billings 5,110,554 5,189,003 (78,449)
Prepaid expenses 204,194 248,483 (44,289)
Inventory - - -
Inventory reserve - - -
--------------------------------------------------
Inventory, net - - -
--------------------------------------------------
Other current assets 10,000 10,000 -
--------------------------------------------------
TOTAL CURRENT ASSETS 21,100,297 21,787,152 (689,605)
--------------------------------------------------
PROPERTY AND EQUIPMENT
Field equipment 2,359,695 2,356,928 2,767
Automotive equipment 1,124,549 1,124,549 -
Office furniture and equipment 1,004,333 1,014,315 (9,982)
Leasehold improvements 107,729 107,729 -
--------------------------------------------------
TOTAL PROPERTY & EQUIP., AT COST 4,596,306 4,603,521 (7,215)
Accum. Depreciation (3,537,691) (3,489,137) (48,554)
--------------------------------------------------
TOTAL PROPERTY & EQUIP., NET 1,058,615 1,114,384 (55,769)
--------------------------------------------------
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 150,669 262,946 (112,277)
Investment & Intercompany in Subsidiaires 0 - 0
--------------------------------------------------
TOTAL ASSETS 22,312,007 23,166,908 (857,651)
--------------------------------------------------
--------------------------------------------------
POST PETITION CURRENT LIABILITIES
Accounts payable 560,621 540,693 19,928
Line of Credit 23,301,721 23,278,363 23,358
Accrued expenses, excluding bankruptcy costs 680,929 684,712 (3,783)
Accrued bankruptcy costs 1,226,004 1,487,967 (261,963)
Estimated claims against cash held in escrow 2,583,956 2,579,250 4,706
Intercompany - BNYFC - - -
Intercompany payables - - -
--------------------------------------------------
TOTAL POST PETITION CURRENT LIABILITIES 28,353,231 28,570,985 (217,754)
Intercompany Notes Payable - - -
Pre Petition Liabilities 15,831,715 15,979,301 (147,586)
Pre Petition Estimated Construction Claims 2,000,000 2,000,000 -
--------------------------------------------------
TOTAL LIABILITIES 46,184,946 46,559,061 (374,115)
--------------------------------------------------
SHAREHOLDERS' EQUITY
Common stock at par 121,289 121,289 -
Additional paid in capital 124,465,227 124,465,227 -
Treasury Stock A-P-I-C (562,506) (562,506) -
Retained earnings - prior (112,005,445) (112,005,445) -
Y-T-D net income pre petition (1,845,936) (1,845,936) -
Y-T-D net income post petition (34,045,568) (33,562,032) (483,536)
--------------------------------------------------
TOTAL SHAREHOLDERS' EQUITY (23,872,939) (23,389,403) (483,536)
--------------------------------------------------
TOTAL LIABILITIES & SHAREHOLDERS' EQUITY 22,312,007 23,169,658 (857,651)
--------------------------------------------------
--------------------------------------------------
</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
March 31, 1999 Feb. 28, 1999
ESD ESD Change
--------------------------------------------------
<S> <C> <C> <C>
Sales 1,408,595 1,227,736 180,859
Cost of Sales 944,564 868,705 75,859
--------------------------------------------------
Gross Profit 464,031 359,031 105,000
Selling, General, and Administrative 513,614 364,424 149,190
--------------------------------------------------
Income (Loss) From Operations (49,583) (5,393) (44,190)
Other Income(Expense):
I/C Interest Income (Expense) (67,911) (63,792) (4,119)
Interest Expense (11) (44) 33
Interest Income - - -
Gain (loss) on Asset Disposition - 3,057 (3,057)
Other Expense (119,698) - (119,698)
--------------------------------------------------
Total Other (Expense) (187,620) (60,779) (126,841)
Net Income (Loss) Before Bankruptcy
Administrative Expenses (237,203) (66,172) (171,031)
Bankruptcy Administrative Expenses
--------------------------------------------------
Net Income (Loss) (237,203) (66,172) (171,031)
--------------------------------------------------
<CAPTION>
(unaudited) (unaudited)
Month Ended Month Ended
March 31, 1999 Feb. 28, 1999
PSD PSD Change
------------------------------------------------
<S> <C> <C> <C>
Sales - 63,042 (63,042)
Cost of Sales 4,318 76,216 (71,898)
------------------------------------------------
Gross Profit (4,318) (13,174) 8,856
Selling, General, and Administrative 25,851 38,393 (12,542)
------------------------------------------------
Income (Loss) From Operations (30,169) (51,567) 21,398
Other Income(Expense):
I/C Interest Income (Expense) (68,322) (63,465) (4,857)
Interest Expense -
Interest Income -
Gain (loss) on Asset Disposition (4,655) (342,895) 338,240
Other Expense - - -
------------------------------------------------
Total Other (Expense) (72,977) (406,360) 333,383
Net Income (Loss) Before Bankruptcy
Administrative Expenses (103,146) (457,927) 354,781
Bankruptcy Administrative Expenses -
------------------------------------------------
Net Income (Loss) (103,146) (457,927) 354,781
------------------------------------------------
</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
March 31, 1999 Feb. 28, 1999
Corporate Corporate Change
-------------------------------------------------
<S> <C> <C> <C>
Sales
Cost of Sales - - -
- - -
Gross Profit -------------------------------------------------
- - -
Selling, General, and Administrative 84,201 81,413 2,788
-------------------------------------------------
Income (Loss) From Operations (84,201) (81,413) (2,788)
Other Income(Expense):
I/C Interest Income (Expense) 136,230 127,257 8,973
Interest Expense (203,045) (184,401) (18,644)
Interest Income -
Gain (loss) on Asset Disposition - - -
Other Expense (13,292) 64,877 (78,169)
-------------------------------------------------
Total Other (Expense) (80,107) 7,733 (87,840)
Net Income (Loss) Before Bankruptcy
Administrative Expenses (164,308) (73,680) (90,628)
Bankruptcy Administrative Expenses 51,104 (109,912) 161,016
-------------------------------------------------
Net Income (Loss) (113,204) (183,592) 70,388
-------------------------------------------------
<CAPTION>
(unaudited) (unaudited)
Month Ended Month Ended
March 31, 1999 Feb. 28, 1999
Continuing Continuing
Operations Operations Change
------------------------------------------------
<S> <C> <C> <C>
Sales
Cost of Sales 1,408,595 1,290,778 117,817
948,882 944,921 3,961
Gross Profit -------------------------------------------------
459,713 345,857 113,856
Selling, General, and Administrative 623,666 484,230 139,436
-------------------------------------------------
Income (Loss) From Operations (163,953) (138,373) (25,580)
Other Income(Expense):
I/C Interest Income (Expense) (3) 0 (3)
Interest Expense (203,056) (184,445) (18,611)
Interest Income 0 0 0
Gain (loss) on Asset Disposition (4,655) (339,838) 335,183
Other Expense (132,990) 64,877 (197,867)
-------------------------------------------------
Total Other (Expense) (340,704) (459,406) 118,702
Net Income (Loss) Before Bankruptcy
Administrative Expenses (504,657) (597,779) 93,122
Bankruptcy Administrative Expenses 51,104 (109,912) 161,016
-------------------------------------------------
Net Income (Loss) (453,553) (707,691) 254,138
-------------------------------------------------
</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
March 31, 1999 Feb. 28, 1999
Discontinued Discontinued
Operations Operations Change
--------------------------------------------------
<S> <C> <C> <C>
Sales 0
Cost of Sales 0
--------------------------------------------------
Gross Profit 0 0 0
Selling, General, and Administrative 0
--------------------------------------------------
Income (Loss) From Operations 0 0 0
Other Income(Expense):
I/C Interest Income (Expense) 0
Interest Expense 0
Interest Income 0
Gain (loss) on Asset Disposition 0
Other Expense (29,983) (140,249) 110,266
--------------------------------------------------
Total Other (Expense) (29,983) (140,249) 110,266
Net Income (Loss) Before Bankruptcy
Administrative Expenses (29,983) (140,249) 110,266
Bankruptcy Administrative Expenses 0
--------------------------------------------------
Net Income (Loss) (29,983) (140,249) 110,266
--------------------------------------------------
<CAPTION>
(unaudited) (unaudited)
Month Ended Month Ended
March 31, 1999 Feb. 28, 1999
Combined Combined
Final Final Change
--------------------------------------------
<S> <C> <C> <C>
Sales 1,408,595 1,290,778 117,817
Cost of Sales 948,882 944,921 3,961
--------------------------------------------
Gross Profit 459,713 345,857 113,856
Selling, General, and Administrative 623,666 484,230 139,436
--------------------------------------------
Income (Loss) From Operations (163,953) (138,373) (25,580)
Other Income(Expense):
I/C Interest Income (Expense) (3) 0 (3)
Interest Expense (203,056) (184,445) (18,611)
Interest Income 0 0 0
Gain (loss) on Asset Disposition (4,655) (339,838) 335,183
Other Expense (162,973) (75,372) (87,601)
--------------------------------------------
Total Other (Expense) (370,687) (599,655) 228,968
Net Income (Loss) Before Bankruptcy
Administrative Expenses (534,640) (738,028) 203,388
Bankruptcy Administrative Expenses 51,104 (109,912) 161,016
--------------------------------------------
Net Income (Loss) (483,536) (847,940) 364,404
--------------------------------------------
</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
MARCH 31, 1999 FEB. 28, 1999 CHANGE
-------------- ------------- ----------
<S> <C> <C> <C>
Cash flows from operating activities:
Net loss $(483,536) $(847,940) $ 364,404
Adjustments to reconcile net loss to net cash (used in) provided by
operating activities:
Depreciation 58,866 63,331 (4,465)
Write off of pre-petition payables and receivables (131,814) 0 (131,814)
Write off of other investments 112,277 0 112,277
Write down of sold property and equipment 0 (239,286) 351,563
(Gain) / Loss on sale of property and equipment 4,655 339,838 (335,183)
Change in certain assets & liabilities:
(Increase) decrease in:
Receivables, net 721,819 38,217 683,602
Costs in excess of billings 78,449 196,138 (117,689)
Inventory, net 0 390,334 (390,334)
Prepaids & other assets 44,289 0 44,289
Increase (decrease) in:
Accounts payable 19,928 (218,112) 238,040
Accrued expenses (290,293) (426,035) 135,742
Other net changes in assets and liabilities 0 24,321 (24,321)
--------- --------- ---------
Total adjustments 618,176 168,746 561,707
--------- --------- ---------
Net cash provided by (used in) operating activities 134,640 (679,194) 926,111
Cash flows from investing activities :
Proceeds from sale of equipment 0 0 0
Additions to property and equipment (7,752) (24,387) 16,635
--------- --------- ---------
Net cash provided by (used in) investing activities (7,752) (24,387) 16,635
Cash flows from financing and other activities:
Net proceeds (repayments) from revolver credit loan 23,358 679,150 (655,792)
Reduction of pre-petition liabilities 0 (33,285) 33,285
--------- --------- ---------
Net cash provided by (used in) financing activities 23,358 645,865 (622,507)
--------- --------- ---------
Net increase (decrease) in cash 150,246 (57,716) 320,239
CASH AT BEGINNING OF PERIOD 66,162 123,878 (57,716)
--------- --------- ---------
CASH AT END OF PERIOD $ 216,408 $ 66,162 $ 262,523
--------- --------- ---------
--------- --------- ---------
</TABLE>
See accompanying notes to financial statement information.
<PAGE>
EXHIBIT 99.1
Omega Environmental, Inc.
Debtor in Possession Case # 97-06084
March 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 March 31, 1999, the Company's borrowings from BNY Financial Corporation
("BNYFC") were $23,301,721. On February 9, 1999, the Company successfully
negotiated with BNYFC for continuance of debtor-in-possession financing through
June 30, 1999.
Costs and Earnings in Excess of Billing
The asset, "Costs and earnings in excess of billings" recorded on the
Environmental Services Division's balance sheet, represents estimated revenues
recognized in excess of amounts billed using the percentage of completion method
of contract accounting. In the past, as projects were completed and billed
significant write-offs of this asset were recorded in excess of reserves
provided. Management believes that as a result of improvements in project
management and time charging practices no material write-offs in excess of the
normal allocated reserves will be required in the future.
Accounts Receivable
Accounts receivable recorded on the Environmental Services Division's balance
sheet are primarily due from various State reimbursement programs for clean up
of leaking underground storage tanks. The collection period for these
receivables frequently exceeds 180 days. Due to the significant amount of time
required to collect these receivables, management is continually analyzing the
collectability of these accounts and estimated bad debts may be significantly in
excess of established reserves. The results of this analysis are not complete at
this time due to the lengthy collection time frame, and any adjustment may have
a material adverse effect on the financial statements.
<PAGE>
Accounts receivable recorded on the Discontinued Operation's balance sheet
represents amounts recorded as due from customers of the company's discontinued
construction business. In February 1999, all of the receivables from the Fedco
Branch were written off except for an account to be collected for $26,500. The
Fedco write off totaled $140,000. In March 1999, all of the receivables from the
SSC-Boerne Branch were written off which totaled $38,000. The amounts ultimately
collected by the company will be significantly less than net recorded amounts in
part because of set-offs, liens, bonding issues and customer disputes which may
result in refusal to pay receivable amounts or require payment or set-off of
pre-petition liabilities and claims. The amount ultimately collectible is not
determinable at this time.
Accounts receivable - miscellaneous recorded on the Petroleum Services
Division's balance sheet decreased by $283,000 in March 1999 due to the
collection of the sale of the Dallas Office.
Accounts receivable - miscellaneous recorded on the Corporate balance sheet of
$148,000 represents funds held in escrow at Debtor's Bankruptcy Counsel as a
result of the Petroleum Services Division (PSD) Houston branch asset sale in
December 1998. The funds are held in escrow pending determination of the amount
of the tax lien asserted by Texas tax authorities.
Pre Petition Liabilities and Notes Payable
In February 1999 and March 1999, certain discontinued branch operations were
transferred out of the Environmental Services Division's accounting records. The
total for this transfer was $263,000 and $197,000 respectively, and had no
operating loss/gain impact on the financial statements.
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