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Previous: PECKS MANAGEMENT PARTNERS LTD /ADV, SC 13G/A, 2000-02-17 |
Next: EHRMAN WILLIAM, 13F-HR, 2000-02-17 |
<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 14, 2000
------------------
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 February 14, 2000, the Registrant filed unaudited financial
statement information as of and for each of the months ended
December 31, 1999 and November 30, 1999 with related notes with
the United States Bankruptcy Court. Exhibit 99-1 is the
Comparative Balance Sheet Information, Comparative Statement of
Operations Information, Comparative Statement of Cash Flows
Information and related notes to financial statement information
as 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 December 31, 1999
and November 30, 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: February 14, 2000 /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)
DECEMBER 31, 1999 NOVEMBER 30, 1999
ESD ESD CHANGE
-------------------------------------------------------------
<S> <C> <C> <C>
CURRENT ASSETS
Cash 51,656 23,615 28,041
Restricted cash held in escrow 2,705,937 2,703,890 2,047
Accounts receivable
A/R--trade 9,381,451 11,089,280 (1,707,829)
A/R--employees 21,630 3,141 18,489
A/R--supplemental 1,242,986 1,242,986 -
A/R--miscellaneous 10,078 10,078 -
Allowance for doubtful accounts (1,513,162) (1,581,795) 68,633
-------------------------------------------------------------
Accounts receivable, net 9,142,983 10,763,690 (1,620,707)
-------------------------------------------------------------
Costs and earnings in excess of billings 5,599,103 5,108,116 490,987
Prepaid expenses 148,104 113,861 34,243
Other current assets -
-------------------------------------------------------------
TOTAL CURRENT ASSETS 17,647,783 18,713,172 (1,065,389)
-------------------------------------------------------------
PROPERTY AND EQUIPMENT
Field equipment 2,217,994 2,217,994 -
Automotive equipment 921,724 921,724 -
Office furniture and equipment 1,004,179 1,004,179 -
Land, Building, and leasehold improvements 107,729 107,729 -
-------------------------------------------------------------
TOTAL PROPERTY & EQUIP., AT COST 4,251,626 4,251,626 -
Accum. Depreciation (3,319,787) (3,285,788) (33,999)
-------------------------------------------------------------
TOTAL PROPERTY & EQUIP., NET 931,839 965,838 (33,999)
-------------------------------------------------------------
Other Assets 92,936 91,773 1,163
Investment & Intercompany in Subsidiaires -
-------------------------------------------------------------
TOTAL ASSETS 18,672,558 19,770,783 (1,098,225)
-------------------------------------------------------------
-------------------------------------------------------------
POST PETITION CURRENT LIABILITIES
Accounts payable 1,670,348 1,153,595 516,753
Line of Credit with GMAC -
Transfer of Pre-petition preference collections from vendors -
-------------------------------------------------------------
Line of Credit with GMAC, net of pre-petition preferences - - -
Accrued expenses, excluding bankruptcy costs 510,710 779,895 (269,185)
Accrued bankruptcy costs -
Intercompany - GMAC 5,807,269 6,999,083 (1,191,814)
-------------------------------------------------------------
TOTAL POST PETITION CURRENT LIABILITIES 10,496,073 11,438,273 (942,200)
Intercompany Notes Payable 7,926,358 7,926,358 -
Pre Petition Preference collections from vendors - - -
Pre Petition Liabilities - - -
Pre Petition Estimated Construction Claims - - -
-------------------------------------------------------------
TOTAL LIABILITIES 18,422,431 19,364,631 (942,200)
-------------------------------------------------------------
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 (8,532) (8,532) -
Y-T-D net income post petition (5,270,678) (5,114,653) (156,025)
-------------------------------------------------------------
TOTAL SHAREHOLDERS' EQUITY 250,127 406,152 (156,025)
-------------------------------------------------------------
TOTAL LIABILITIES & SHAREHOLDERS' EQUITY 18,672,558 19,770,783 (1,098,225)
-------------------------------------------------------------
-------------------------------------------------------------
<CAPTION>
(UNAUDITED) (UNAUDITED)
DECEMBER 31, 1999 NOVEMBER 30, 1999
CORPORATE CORPORATE CHANGE
------------------------------------------------------------
<S> <C> <C> <C>
CURRENT ASSETS
Cash 547,478 489,448 58,030
Restricted cash held in escrow -
Accounts receivable
A/R--trade - - -
A/R--employees - - -
A/R--supplemental -
A/R--miscellaneous 1,224,094 1,224,094 -
Allowance for doubtful accounts (1,076,094) (1,076,094) -
------------------------------------------------------------
Accounts receivable, net 148,000 148,000 -
------------------------------------------------------------
Costs and earnings in excess of billings -
Prepaid expenses 83,644 137,644 (54,000)
Other current assets -
------------------------------------------------------------
TOTAL CURRENT ASSETS 779,122 775,092 4,030
------------------------------------------------------------
PROPERTY AND EQUIPMENT
Field equipment - - -
Automotive equipment - - -
Office furniture and equipment 27,206 34,872 (7,666)
Land, Building, and leasehold improvements - - -
------------------------------------------------------------
TOTAL PROPERTY & EQUIP., AT COST 27,206 34,872 (7,666)
Accum. Depreciation (27,206) (34,231) 7,025
------------------------------------------------------------
TOTAL PROPERTY & EQUIP., NET - 641 (641)
------------------------------------------------------------
Other Assets 41,622 41,622 -
Investment & Intercompany in Subsidiaires 74,375,431 74,375,431 -
-------------------------------------------------------------
TOTAL ASSETS 75,196,175 75,192,786 3,389
-------------------------------------------------------------
-------------------------------------------------------------
POST PETITION CURRENT LIABILITIES
Accounts payable 38,084 63,645 (25,561)
Line of Credit with GMAC 24,789,303 24,482,271 307,032
Transfer of Pre-petition preference collections from vendors (686,635) (569,465) (117,170)
------------------------------------------------------------
Line of Credit with GMAC, net of pre-petition preferences 24,102,668 23,912,806 189,862
Accrued expenses, excluding bankruptcy costs 8,307 22,503 (14,196)
Accrued bankruptcy costs 1,154,098 1,905,345 (751,247)
Intercompany - GMAC (15,882,179) (17,291,585) 1,409,406
------------------------------------------------------------
TOTAL POST PETITION CURRENT LIABILITIES 9,420,978 9,182,179 808,264
Intercompany Notes Payable -
Pre Petition Preference collections from vendors 686,635 569,465 117,170
Pre Petition Liabilities 3,606,863 4,176,328 (569,465)
Pre Petition Estimated Construction Claims -
------------------------------------------------------------
TOTAL LIABILITIES 13,714,476 13,358,507 355,969
------------------------------------------------------------
SHAREHOLDERS' EQUITY
Common stock at par 121,289 121,289 -
Additional paid in capital 127,234,871 127,234,871 -
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 (2,399,934) (2,399,934) -
Y-T-D net income post petition (13,590,918) (13,238,338) (352,580)
------------------------------------------------------------
TOTAL SHAREHOLDERS' EQUITY 61,481,699 61,834,279 (352,580)
------------------------------------------------------------
TOTAL LIABILITIES & SHAREHOLDERS' EQUITY 75,196,175 75,192,786 3,389
------------------------------------------------------------
------------------------------------------------------------
</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)
DECEMBER 31, 1999 NOVEMBER 30, 1999
CONTINUING CONTINUING
OPERATIONS OPERATIONS CHANGE
---------------------------------------------------------------
<S> <C> <C> <C>
CURRENT ASSETS
Cash 599,134 513,063 86,071
Restricted cash held in escrow 2,705,937 2,703,890 2,047
Accounts receivable
A/R--trade 9,381,451 11,089,280 (1,707,829)
A/R--employees 21,630 3,141 18,489
A/R--supplemental 1,242,986 1,242,986 -
A/R--miscellaneous 1,234,172 1,234,172 -
Allowance for doubtful accounts (2,589,256) (2,657,889) 68,633
---------------------------------------------------------------
Accounts receivable, net 9,290,983 10,911,690 (1,620,707)
---------------------------------------------------------------
Costs and earnings in excess of billings 5,599,103 5,108,116 490,987
Prepaid expenses 231,748 251,505 (19,757)
Other current assets - - -
---------------------------------------------------------------
TOTAL CURRENT ASSETS 18,426,905 19,488,264 (1,061,359)
---------------------------------------------------------------
PROPERTY AND EQUIPMENT
Field equipment 2,217,994 2,217,994 -
Automotive equipment 921,724 921,724 -
Office furniture and equipment 1,031,385 1,039,051 (7,666)
Land, Building, and leasehold improvements 107,729 107,729 -
---------------------------------------------------------------
TOTAL PROPERTY & EQUIP., AT COST 4,278,832 4,286,498 (7,666)
Accum. Depreciation (3,346,993) (3,320,019) (26,974)
---------------------------------------------------------------
TOTAL PROPERTY & EQUIP., NET 931,839 966,479 (34,640)
---------------------------------------------------------------
Other Assets 134,558 133,395 1,163
Investment & Intercompany in Subsidiaires 74,375,431 74,375,431 -
---------------------------------------------------------------
TOTAL ASSETS 93,868,733 94,963,569 (1,094,836)
---------------------------------------------------------------
---------------------------------------------------------------
POST PETITION CURRENT LIABILITIES
Accounts payable 1,708,432 1,217,240 491,192
Line of Credit with GMAC 24,789,303 24,482,271 307,032
Transfer of Pre-petition preference collections from vendors (686,635) (569,465) (117,170)
---------------------------------------------------------------
Line of Credit with GMAC, net of pre-petition preferences 24,102,668 23,912,806 189,862
Accrued expenses, excluding bankruptcy costs 519,017 802,398 (283,381)
Accrued bankruptcy costs 1,154,098 1,905,345 (751,247)
Intercompany - GMAC (10,074,910) (10,292,502) 217,592
---------------------------------------------------------------
TOTAL POST PETITION CURRENT LIABILITIES 19,917,051 20,050,987 (133,936)
Intercompany Notes Payable 7,926,358 7,926,358 -
Pre Petition Preference collections from vendors 686,635 569,465 117,170
Pre Petition Liabilities 3,606,863 4,176,328 (569,465)
Pre Petition Estimated Construction Claims - - -
---------------------------------------------------------------
TOTAL LIABILITIES 32,136,907 32,723,138 (586,231)
---------------------------------------------------------------
SHAREHOLDERS' EQUITY
Common stock at par 121,289 121,289 -
Additional paid in capital 141,792,548 141,792,548 -
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 (2,408,466) (2,408,466) -
Y-T-D net income post petition (18,861,596) (18,352,991) (508,605)
---------------------------------------------------------------
TOTAL SHAREHOLDERS' EQUITY 61,731,826 62,240,431 (508,605)
---------------------------------------------------------------
TOTAL LIABILITIES & SHAREHOLDERS' EQUITY 93,868,733 94,963,569 (1,094,836)
---------------------------------------------------------------
---------------------------------------------------------------
<CAPTION>
(UNAUDITED) (UNAUDITED)
DECEMBER 31, 1999 NOVEMBER 30, 1999
DISCONTINUED DISCONTINUED
OPERATIONS OPERATIONS CHANGE
--------------------------------------------------------------
<S> <C> <C> <C>
CURRENT ASSETS
Cash - - -
Restricted cash held in escrow 20,861 20,861 -
Accounts receivable
A/R--trade 3,240,282 3,756,148 (515,866)
A/R--employees -
A/R--supplemental -
A/R--miscellaneous - - -
Allowance for doubtful accounts (2,451,014) (2,537,882) 86,868
--------------------------------------------------------------
Accounts receivable, net 789,268 1,218,266 (428,998)
--------------------------------------------------------------
Costs and earnings in excess of billings -
Prepaid expenses - - -
Other current assets - - -
--------------------------------------------------------------
TOTAL CURRENT ASSETS 810,129 1,239,127 (428,998)
--------------------------------------------------------------
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 -
--------------------------------------------------- ---------
Other Assets - - -
Investment & Intercompany in Subsidiaires -
--------------------------------------------------------------
TOTAL ASSETS 811,129 1,240,127 (428,998)
--------------------------------------------------------------
--------------------------------------------------------------
POST PETITION CURRENT LIABILITIES
Accounts payable - - -
Line of Credit with GMAC -
Transfer of Pre-petition preference collections from vendors -
--------------------------------------------------------------
Line of Credit with GMAC, net of pre-petition preferences - - -
Accrued expenses, excluding bankruptcy costs 69,976 69,976 -
Accrued bankruptcy costs - - -
Intercompany - GMAC 10,074,910 10,292,502 (217,592)
--------------------------------------------------------------
TOTAL POST PETITION CURRENT LIABILITIES 10,165,693 10,383,285 (217,592)
Intercompany Notes Payable 4,320,625 4,320,625 0
Pre Petition Preference collections from vendors -
Pre Petition Liabilities 11,809,110 11,809,110 -
Pre Petition Estimated Construction Claims 1,800,000 1,800,000 -
--------------------------------------------------------------
TOTAL LIABILITIES 28,095,428 28,313,020 (217,592)
--------------------------------------------------------------
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 499,770 499,770 -
Y-T-D net income post petition (18,929,193) (18,717,787) (211,406)
--------------------------------------------------------------
TOTAL SHAREHOLDERS' EQUITY (27,284,299) (27,072,893) (211,406)
--------------------------------------------------------------
TOTAL LIABILITIES & SHAREHOLDERS' EQUITY 811,129 1,240,127 (428,998)
--------------------------------------------------------------
--------------------------------------------------------------
</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)
DECEMBER 31, 1999 NOVEMBER 30, 1999
COMBINED COMBINED
FINAL FINAL CHANGE
-------------------------------------------------------------
<S> <C> <C> <C>
CURRENT ASSETS
Cash 599,134 513,063 86,071
Restricted cash held in escrow 2,726,798 2,724,751 2,047
Accounts receivable
A/R--trade 12,621,733 14,845,428 (2,223,695)
A/R--employees 21,630 3,141 18,489
A/R--supplemental 1,242,986 1,242,986 -
A/R--miscellaneous 1,234,172 1,234,172 -
Allowance for doubtful accounts (5,040,270) (5,195,771) 155,501
-------------------------------------------------------------
Accounts receivable, net 10,080,251 12,129,956 (2,049,705)
-------------------------------------------------------------
Costs and earnings in excess of billings 5,599,103 5,108,116 490,987
Prepaid expenses 231,748 251,505 (19,757)
Other current assets - - -
-------------------------------------------------------------
TOTAL CURRENT ASSETS 19,237,034 20,727,391 (1,490,357)
-------------------------------------------------------------
PROPERTY AND EQUIPMENT
Field equipment 2,218,994 2,218,994 -
Automotive equipment 921,724 921,724 -
Office furniture and equipment 1,031,385 1,039,051 (7,666)
Land, Building, and leasehold improvements 107,729 107,729 -
-------------------------------------------------------------
TOTAL PROPERTY & EQUIP., AT COST 4,279,832 4,287,498 (7,666)
Accum. Depreciation (3,346,993) (3,320,019) (26,974)
-------------------------------------------------------------
TOTAL PROPERTY & EQUIP., NET 932,839 967,479 (34,640)
-------------------------------------------------------------
Other Assets 134,558 133,395 1,163
Investment & Intercompany in Subsidiaires 0 0 -
-------------------------------------------------------------
TOTAL ASSETS 20,304,431 21,828,265 (1,523,834)
-------------------------------------------------------------
-------------------------------------------------------------
POST PETITION CURRENT LIABILITIES
Accounts payable 1,708,432 1,217,240 491,192
Line of Credit with GMAC 24,789,303 24,482,271 307,032
Transfer of Pre-petition preference collections from vendors (686,635) (569,465) (117,170)
-------------------------------------------------------------
Line of Credit with GMAC, net of pre-petition preferences 24,102,668 23,912,806 189,862
Accrued expenses, excluding bankruptcy costs 588,993 872,374 (283,381)
Accrued bankruptcy costs 1,154,098 1,905,345 (751,247)
Intercompany - GMAC - - -
-------------------------------------------------------------
TOTAL POST PETITION CURRENT LIABILITIES 30,082,744 30,434,272 (351,528)
Intercompany Notes Payable - - -
Pre Petition Preference collections from vendors 686,635 569,465 117,170
Pre Petition Liabilities 15,415,973 15,985,438 (569,465)
Pre Petition Estimated Construction Claims 1,800,000 1,800,000 -
-------------------------------------------------------------
TOTAL LIABILITIES 47,985,352 48,789,175 (803,823)
-------------------------------------------------------------
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 (1,908,696) (1,908,696) -
Y-T-D net income post petition (37,790,789) (37,070,778) (720,011)
-------------------------------------------------------------
TOTAL SHAREHOLDERS' EQUITY (27,680,921) (26,960,910) (720,011)
-------------------------------------------------------------
TOTAL LIABILITIES & SHAREHOLDERS' EQUITY 20,304,431 21,828,265 (1,523,834)
-------------------------------------------------------------
-------------------------------------------------------------
</TABLE>
See accompanying notes to financial statement information
<PAGE>
OMEGA ENVIRONMENTAL, INC. EXHIBIT 99.1
DEBTOR IN POSSESSION CASE #97-06084
COMPARATIVE STATEMENT OF
OPERATIONS INFORMATION
<TABLE>
<CAPTION>
(UNAUDITED) (UNAUDITED)
MONTH ENDED MONTH ENDED
DECEMBER 31, 1999 NOVEMBER 30, 1999
ESD ESD CHANGE
-----------------------------------------------------------------
<S> <C> <C> <C>
Sales 1,756,298 1,283,021 473,277
Cost of Sales 1,401,229 1,013,179 388,050
-----------------------------------------------------------------
Gross Profit 355,069 269,842 85,227
Selling, General, and Administrative 453,452 363,247 90,205
-----------------------------------------------------------------
Income (Loss) From Operations (98,383) (93,405) (4,978)
Other Income(Expense):
I/C Interest Income (Expense) (57,881) (63,901) 6,020
Interest Expense (11) 103 (114)
Interest Income - - -
Gain (loss) on Asset Disposition 250 118,570 (118,320)
Other Expense - - -
-----------------------------------------------------------------
Total Other (Expense) (57,642) 54,772 (112,414)
Net Income (Loss) Before Bankruptcy
Administrative Expenses (156,025) (38,633) (117,392)
Bankruptcy Administrative Expenses
-----------------------------------------------------------------
Net Income (Loss) (156,025) (38,633) (117,392)
-----------------------------------------------------------------
-----------------------------------------------------------------
<CAPTION>
(UNAUDITED) (UNAUDITED)
MONTH ENDED MONTH ENDED
DECEMBER 31, 1999 NOVEMBER 30, 1999
CORPORATE CORPORATE CHANGE
-----------------------------------------------------------------
<S> <C> <C> <C>
Sales - - -
Cost of Sales - - -
-----------------------------------------------------------------
Gross Profit - - -
Selling, General, and Administrative 68,829 59,841 8,988
-----------------------------------------------------------------
Income (Loss) From Operations (68,829) (59,841) (8,988)
Other Income(Expense):
I/C Interest Income (Expense) 57,881 63,901 (6,020)
Interest Expense (211,174) (217,619) 6,445
Interest Income -
Gain (loss) on Asset Disposition - - -
Other Expense (1,958) (27,250) 25,292
-----------------------------------------------------------------
Total Other (Expense) (155,251) (180,968) 25,717
Net Income (Loss) Before Bankruptcy
Administrative Expenses (224,080) (240,809) 16,729
Bankruptcy Administrative Expenses (128,500) (125,000) (3,500)
-----------------------------------------------------------------
Net Income (Loss) (352,580) (365,809) 13,229
-----------------------------------------------------------------
-----------------------------------------------------------------
</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
DECEMBER 31, 1999 NOVEMBER 30, 1999
CONTINUING CONTINUING
OPERATIONS OPERATIONS CHANGE
---------------------------------------------------------------
<S> <C> <C> <C>
Sales 1,756,298 1,283,021 473,277
Cost of Sales 1,401,229 1,013,179 388,050
---------------------------------------------------------------
Gross Profit 355,069 269,842 85,227
Selling, General, and Administrative 522,281 423,088 99,193
---------------------------------------------------------------
Income (Loss) From Operations (167,212) (153,246) (13,966)
Other Income(Expense):
I/C Interest Income (Expense) 0 0 0
Interest Expense (211,185) (217,516) 6,331
Interest Income 0 0 0
Gain (loss) on Asset Disposition 250 118,570 (118,320)
Other Expense (1,958) (27,250) 25,292
---------------------------------------------------------------
Total Other (Expense) (212,893) (126,196) (86,697)
Net Income (Loss) Before Bankruptcy
Administrative Expenses (380,105) (279,442) (100,663)
Bankruptcy Administrative Expenses (128,500) (125,000) (3,500)
---------------------------------------------------------------
Net Income (Loss) (508,605) (404,442) (104,163)
---------------------------------------------------------------
---------------------------------------------------------------
<CAPTION>
(UNAUDITED) (UNAUDITED)
MONTH ENDED MONTH ENDED
DECEMBER 31, 1999 NOVEMBER 30, 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 (211,406) (10,345) (201,061)
--------------------------------------------------------------
Total Other (Expense) (211,406) (10,345) (201,061)
Net Income (Loss) Before Bankruptcy
Administrative Expenses (211,406) (10,345) (201,061)
Bankruptcy Administrative Expenses 0 0 0
--------------------------------------------------------------
Net Income (Loss) (211,406) (10,345) (201,061)
--------------------------------------------------------------
--------------------------------------------------------------
</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
DECEMBER 31, 1999 NOVEMBER 30, 1999
COMBINED COMBINED
FINAL FINAL CHANGE
------------------------------------------------------------
<S> <C> <C> <C>
Sales 1,756,298 1,283,021 473,277
Cost of Sales 1,401,229 1,013,179 388,050
------------------------------------------------------------
Gross Profit 355,069 269,842 85,227
Selling, General, and Administrative 522,281 423,088 99,193
------------------------------------------------------------
Income (Loss) From Operations (167,212) (153,246) (13,966)
Other Income(Expense):
I/C Interest Income (Expense) 0 0 0
Interest Expense (211,185) (217,516) 6,331
Interest Income 0 0 0
Gain (loss) on Asset Disposition 250 118,570 (118,320)
Other Expense (213,364) (37,595) (175,769)
------------------------------------------------------------
Total Other (Expense) (424,299) (136,541) (287,758)
Net Income (Loss) Before Bankruptcy
Administrative Expenses (591,511) (289,787) (301,724)
Bankruptcy Administrative Expenses (128,500) (125,000) (3,500)
------------------------------------------------------------
Net Income (Loss) (720,011) (414,787) (305,224)
------------------------------------------------------------
------------------------------------------------------------
</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
DECEMBER 31, 1999 NOVEMBER 30, 1999 CHANGE
---------------------- -------------------- ------------
<S> <C> <C> <C>
Cash flows from operating activities:
Net loss ($720,011) ($414,787) ($305,224)
Adjustments to reconcile net loss to net cash
(used in) provided by operating activities:
Depreciation 34,640 42,455 (7,815)
Write off of accounts payable in discontinued operations 211,406 0 211,406
(Gain) / Loss on sale of property and equipment (250) (118,570) 118,320
Change in certain assets & liabilities:
(Increase) decrease in:
Receivables, net 1,838,299 217,289 1,621,010
Costs in excess of billings (490,987) 264,421 (755,408)
Prepaids & other assets 19,757 14,179 5,578
Increase (decrease) in:
Accounts payable 491,192 (5,758) 496,950
Accrued expenses (1,034,628) 126,863 (1,161,491)
Other net changes in assets and liabilities (1,164) 30,001 (31,165)
Total adjustments 1,068,265 570,880 497,385
---------------------- -------------------- ------------
Net cash provided by (used in) operating activities 348,254 156,093 192,161
---------------------- -------------------- ------------
Cash flows from investing activities :
Proceeds from sale of equipment 251 126,377 (126,126)
Additions to property and equipment 0 (36,432) 36,432
---------------------- -------------------- ------------
Net cash provided by (used in) investing activities 251 89,945 (89,694)
Cash flows from financing and other activities:
Net proceeds (repayments) from revolver credit loan 307,032 188,564 118,468
Proceeds from pre-petition preference payment receipts 117,170 68,886 48,284
(Reduction) Increase of pre-petition liabilities (686,636) 0 (686,636)
---------------------- -------------------- ------------
Net cash provided by (used in) financing activities (262,434) 257,450 (519,884)
---------------------- -------------------- ------------
Net increase (decrease) in cash 86,071 503,488 (417,417)
CASH AT BEGINNING OF PERIOD 513,063 9,575 503,488
---------------------- -------------------- ------------
CASH AT END OF PERIOD $599,134 $513,063 $86,071
---------------------- -------------------- ------------
---------------------- -------------------- ------------
</TABLE>
See accompanying notes to financial statement information
<PAGE>
EXHIBIT 99.1
Omega Environmental, Inc.
Debtor in Possession Case # 97-06084
December 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.
GMAC Credit Corporation
As of December 31, 1999, the Company's borrowings from GMAC Credit Corporation
("GMAC") were $24,789,302.
Costs and Earnings in Excess of Billing
The asset, "Costs and earnings in excess of billings" recorded on the
Environmental Services Division's balance sheet, represents estimated revenues
recognized in excess of amounts billed using the percentage of completion method
of contract accounting. In the past, as projects were completed and billed,
significant write-offs of this asset were recorded in excess of reserves
provided. Management believes that as a result of improvements in project
management and time charging practices no material write-offs in excess of the
normal allocated reserves will be required in the future.
Accounts Receivable
Accounts receivable recorded on the Environmental Services Division's balance
sheet are primarily due from various State reimbursement programs for clean up
of leaking underground storage tanks. The collection period for these
receivables frequently exceeds 180 days. Due to the significant amount of time
required to collect these receivables, management is continually analyzing the
collectability of these accounts and estimated bad debts may be significantly in
excess of established reserves. The results of this analysis are not complete at
this time due to the lengthy collection time frame, and any adjustment may have
a material adverse effect on the financial statements.
<PAGE>
Accounts receivable recorded on the Discontinued Operation's balance sheet
primarily represent amounts recorded as due from customers of the company's
discontinued construction business. The amounts ultimately collected by the
company will be significantly less than net recorded amounts in part because of
set-offs, liens, bonding issues and customer disputes which may result in
refusal to pay receivable amounts or require payment or set-off of pre-petition
liabilities and claims. The amount ultimately collectible is not determinable at
this time.
Accounts receivable recorded on the corporate balance sheet of $148,000
represents funds held in escrow at Debtor's Bankruptcy Counsel as a result of
the Petroleum Services Division (PSD) Houston branch asset sale in December
1998. These funds are held in escrow pending the final determination of the
amount of liens asserted by Texas tax authorities.
Pre-Petition Preference Receipts
Beginning in June 1999, Omega began collecting pre-petition preferences which
are accounted for in the pre-petition liabilities section of the Corporate
balance sheet. Collections for the month of December 1999 and total collections
since June 1999 were $117,170, and $686,635, respectively.
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