<PAGE>
EXHIBIT 99.1
Omega Environmental, Inc.
Debtor in Possession Case # 97-06084
May 31, 2000 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 May 31, 2000, the Company's borrowings from GMAC Credit Corporation
("GMACCC") were $10,225,231.
Accounts Receivable
Accounts receivable recorded on the Discontinued Operation's balance sheet of
$1.2 million represents Florida Supplemental balances. The amount is fully
reserved.
Pre-Petition Preference Receipts
Beginning in June 1999, Omega began collecting pre-petition preferences that are
accounted for in the pre-petition liabilities section of the corporate balance
sheet. Collections for the month of May 2000 and total collections since June
1999 were $6,000, and $997,252, respectively.
Sale of Environmental Services Division (ESD)
On May 22, 2000, Omega sold the ESD division to certain members of management
and GMACCC for $17,000,000. All of the discontinued entities receivables, except
the Florida Supplemental balances, were purchased by ESD. This was the last of
the Omega divisions to be sold.
<PAGE>
OMEGA ENVIRONMENTAL, INC. EXHIBIT 99.1
Debtor In Possession Case #97-06084
Comparative Balance Sheet Information
<TABLE>
<CAPTION>
(unaudited (unaudited) (unaudited) (unaudited)
May 31, 2000 April 30, 2000 May 31, 2000 April 30, 2000
ESD ESD Change Corporate Corporate Change
------------------------------------------ ------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
CURRENT ASSETS
Cash -- -- -- 451,470 258,164 193,306
Restricted cash held in escrow -- -- -- --
Accounts receivable
A/R--trade -- 9,287,286 (9,287,286) -- -- --
A/R--remediation systems -- 157,263 (157,263) -- -- --
A/R--employees -- 23,004 (23,004) -- -- --
A/R--supplemental -- -- -- -- -- --
A/R--miscellaneous -- 16,250 (16,250) -- 1,224,094 (1,224,094)
Allowance for doubtful accounts -- (271,926) 271,926 -- (1,076,094) 1,076,094
------------------------------------------ ------------------------------------------
Accounts receivable, net -- 9,211,877 (9,211,877) -- 148,000 (148,000)
------------------------------------------ ------------------------------------------
Costs and earnings in excess of billings -- 4,507,020 (4,507,020) --
Costs and earnings in excess of billings
for Remediation Systems -- 562,153 (562,153) --
Prepaid expenses -- 345,138 (345,138) 89,126 47,409 41,717
------------------------------------------ ------------------------------------------
TOTAL CURRENT ASSETS -- 14,626,188 (14,626,188) 540,596 453,573 87,023
------------------------------------------ ------------------------------------------
PROPERTY AND EQUIPMENT
Field equipment -- 2,127,801 (2,127,801) -- -- --
Automotive equipment -- 905,345 (905,345) -- -- --
Office furniture and equipment -- 1,024,761 (1,024,761) -- 16,403 (16,403)
Land, Building, and leasehold
improvements -- 112,128 (112,128) -- -- --
------------------------------------------ ------------------------------------------
TOTAL PROPERTY & EQUIP., AT COST -- 4,170,035 (4,170,035) -- 16,403 (16,403)
Accum. Depreciation -- (3,348,726) 3,348,726 -- (16,403) 16,403
------------------------------------------ ------------------------------------------
TOTAL PROPERTY & EQUIP., NET -- 821,309 (821,309) -- -- --
------------------------------------------ ------------------------------------------
Other Assets -- 87,809 (87,809) -- 41,622 (41,622)
Investment & Intercompany in Subsidiaries -- 74,375,431 74,375,431 --
------------------------------------------ ------------------------------------------
TOTAL ASSETS -- 15,535,306 (15,535,306) 74,916,027 74,870,626 45,401
========================================== ==========================================
POST PETITION CURRENT LIABILITIES
Accounts payable -- 882,190 (882,190) 3,506 3,159 347
Accounts payable - remediation systems -- 719,416 (719,416) -- -- --
Line of Credit with GMAC -- -- -- 10,225,231 26,323,895 (16,098,664)
Transfer of Pre-petition preference
collections from vendors -- -- -- (997,252) (991,252) (6,000)
------------------------------------------ ------------------------------------------
Line of Credit with GMAC, net of
pre-petition preferences -- -- -- 9,227,979 25,332,643 (16,104,664)
Accrued expenses, excluding bankruptcy
costs -- 544,296 (544,296) 30,187 28,088 2,099
Accrued bankruptcy costs -- -- -- 1,195,861 1,611,390 (415,529)
Estimated claims against cash held in
escrow -- -- -- -- -- --
Intercompany - GMAC (9,185,622) 6,606,862 (15,792,484) (70,944) (16,651,200) 16,580,256
------------------------------------------ ------------------------------------------
TOTAL POST PETITION CURRENT LIABILITIES (9,185,622) 8,752,764 (17,938,386) 10,386,589 10,324,080 62,509
Intercompany Notes Payable 7,435,857 7,435,857 -- -- -- --
Pre Petition Preference collections from
vendors -- -- -- 997,252 991,252 6,000
Pre Petition Liabilities -- -- -- 3,606,863 3,606,863 --
Pre Petition Estimated Construction Claims -- -- -- -- -- --
------------------------------------------ ------------------------------------------
TOTAL LIABILITIES (1,749,765) 16,188,621 (17,938,386) 14,990,704 14,922,195 68,509
------------------------------------------ ------------------------------------------
SHAREHOLDERS' EQUITY
Common stock at par 121,289 121,289 --
Additional paid in capital 14,557,677 14,557,677 -- 127,234,871 127,234,871 --
Treasury Stock A-P-I-C -- -- (562,506) (562,506) --
Retained earnings - prior (9,028,340) (9,028,340) -- (49,321,103) (49,321,103) --
Y-T-D net income pre petition (8,532) (8,532) -- (2,399,934) (2,399,934) --
Y-T-D net income post petition (3,771,040) (6,174,120) 2,403,080 (15,147,294) (15,124,186) (23,108)
------------------------------------------ ------------------------------------------
TOTAL SHAREHOLDERS' EQUITY 1,749,765 (653,315) 2,403,080 59,925,323 59,948,431 (23,108)
------------------------------------------ ------------------------------------------
TOTAL LIABILITIES & SHAREHOLDERS' EQUITY -- 15,535,306 (15,535,306) 74,916,027 74,870,626 45,401
========================================== ==========================================
</TABLE>
See accompanying notes to financial statement information
<PAGE>
OMEGA ENVIRONMENTAL, INC.
Debtor In Possession Case #97-06084
Comparative Balance Sheet Information
<TABLE>
<CAPTION>
(unaudited) (unaudited) (unaudited) (unaudited)
May 31, 2000 April 30, 2000 May 31, 2000 April 30, 2000
Continuing Continuing Discontinued Discontinued
Operations Operations Change Operations Operations Change
------------------------------------------ ------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
CURRENT ASSETS
Cash 451,470 258,164 193,306 -- -- --
Restricted cash held in escrow -- -- -- 2,736,685 2,734,665 2,020
Accounts receivable
A/R--trade -- 9,287,286 (9,287,286) -- 3,240,282 (3,240,282)
A/R--remediation systems -- 157,263 (157,263) -- -- --
A/R--employees -- 23,004 (23,004) -- -- --
A/R--supplemental -- -- -- 1,229,656 1,242,986 (13,330)
A/R--miscellaneous -- 1,240,344 (1,240,344) -- 10,078 (10,078)
Allowance for doubtful accounts -- (1,348,020) 1,348,020 (1,229,656) (3,411,768) 2,182,112
------------------------------------------ ------------------------------------------
Accounts receivable, net -- 9,359,877 (9,359,877) -- 1,081,578 (1,081,578)
------------------------------------------ ------------------------------------------
Costs and earnings in excess of billings -- 4,507,020 (4,507,020) --
Costs and earnings in excess of billings
for Remediation Systems -- 562,153 (562,153) --
Prepaid expenses 89,126 392,547 (303,421) -- -- --
------------------------------------------ ------------------------------------------
TOTAL CURRENT ASSETS 540,596 15,079,761 (14,539,165) 2,736,685 3,816,243 (1,079,558)
------------------------------------------ ------------------------------------------
PROPERTY AND EQUIPMENT
Field equipment -- 2,127,801 (2,127,801) -- -- --
Automotive equipment -- 905,345 (905,345) -- -- --
Office furniture and equipment -- 1,041,164 (1,041,164) -- -- --
Land, Building, and leasehold
improvements -- 112,128 (112,128) -- -- --
------------------------------------------ ------------------------------------------
TOTAL PROPERTY & EQUIP., AT COST -- 4,186,438 (4,186,438) -- -- --
Accum. Depreciation -- (3,365,129) 3,365,129 -- -- --
------------------------------------------ ------------------------------------------
TOTAL PROPERTY & EQUIP., NET -- 821,309 (821,309) -- -- --
------------------------------------------ ------------------------------------------
Other Assets -- 129,431 (129,431) -- -- --
Investment & Intercompany in Subsidiaries 74,375,431 74,375,431 -- --
------------------------------------------ ------------------------------------------
TOTAL ASSETS 74,916,027 90,405,932 (15,489,905) 2,736,685 3,816,243 (1,079,558)
========================================== ==========================================
POST PETITION CURRENT LIABILITIES
Accounts payable 3,506 885,349 (881,843) -- -- --
Accounts payable - remediation systems -- 719,416 (719,416) -- -- --
Line of Credit with GMAC 10,225,231 26,323,895 (16,098,664) -- -- --
Transfer of Pre-petition preference
collections from vendors (997,252) (991,252) (6,000) -- -- --
------------------------------------------ ------------------------------------------
Line of Credit with GMAC, net of
pre-petition preferences 9,227,979 25,332,643 (16,104,664) -- -- --
Accrued expenses, excluding bankruptcy
costs 30,187 572,384 (542,197) 69,976 69,976 --
Accrued bankruptcy costs 1,195,861 1,611,390 (415,529) -- -- --
Estimated claims against cash held in
escrow -- -- -- 2,736,631 2,536,420 200,211
Intercompany - GMAC (9,256,566) (10,044,338) 787,772 9,256,566 10,044,338 (787,772)
------------------------------------------ ------------------------------------------
TOTAL POST PETITION CURRENT LIABILITIES 1,200,967 19,076,844 (17,875,877) 12,063,173 12,650,734 (587,561)
Intercompany Notes Payable 7,435,857 7,435,857 -- 4,811,126 4,811,126 --
Pre Petition Preference collections from
vendors 997,252 991,252 6,000 -- -- --
Pre Petition Liabilities 3,606,863 3,606,863 -- 11,809,400 11,809,400 --
Pre Petition Estimated Construction Claims -- -- -- 1,800,000 1,800,000 --
------------------------------------------ ------------------------------------------
TOTAL LIABILITIES 13,240,939 31,110,816 (17,869,877) 30,483,699 31,071,260 (587,561)
------------------------------------------ ------------------------------------------
SHAREHOLDERS' EQUITY
Common stock at par 121,289 121,289 -- 5,454,120 5,454,120 --
Additional paid in capital 141,792,548 141,792,548 -- 39,347,007 39,347,007 --
Treasury Stock A-P-I-C (562,506) (562,506) -- -- -- --
Retained earnings - prior (58,349,443) (58,349,443) -- (53,656,003) (53,656,003) --
Y-T-D net income pre petition (2,408,466) (2,408,466) -- (941,910) (941,910) --
Y-T-D net income post petition (18,918,334) (21,298,306) 2,379,972 (17,950,228) (17,458,232) (491,997)
------------------------------------------ ------------------------------------------
TOTAL SHAREHOLDERS' EQUITY 61,675,088 59,295,116 2,379,972 (27,747,014) (27,255,017) (491,997)
------------------------------------------ ------------------------------------------
TOTAL LIABILITIES & SHAREHOLDERS' EQUITY 74,916,027 90,405,932 (15,489,905) 2,736,685 3,816,243 (1,079,558)
========================================== ==========================================
</TABLE>
See accompanying notes to financial statement information
<PAGE>
OMEGA ENVIRONMENTAL, INC.
Debtor In Possession Case #97-06084
Comparative Balance Sheet Information
<TABLE>
<CAPTION>
(unaudited) (unaudited)
May 31, 2000 April 30, 2000
Combined Combined
Final Final Change
----------------------------------------------
<S> <C> <C> <C>
CURRENT ASSETS
Cash 451,470 258,164 193,306
Restricted cash held in escrow 2,736,685 2,734,665 2,020
Accounts receivable
A/R--trade -- 12,527,568 (12,527,568)
A/R--remediation systems -- 157,263 (157,263)
A/R--employees -- 23,004 (23,004)
A/R--supplemental 1,229,656 1,242,986 (13,330)
A/R--miscellaneous -- 1,250,422 (1,250,422)
Allowance for doubtful accounts (1,229,656) (4,759,788) 3,530,132
----------------------------------------------
Accounts receivable, net -- 10,441,455 (10,441,455)
----------------------------------------------
Costs and earnings in excess of billings -- 4,507,020 (4,507,020)
Costs and earnings in excess of billings
for Remediation Systems -- 562,153 (562,153)
Prepaid expenses 89,126 392,547 (303,421)
----------------------------------------------
TOTAL CURRENT ASSETS 3,277,281 18,896,004 (15,618,723)
----------------------------------------------
PROPERTY AND EQUIPMENT
Field equipment -- 2,127,801 (2,127,801)
Automotive equipment -- 905,345 (905,345)
Office furniture and equipment -- 1,041,164 (1,041,164)
Land, Building, and leasehold
improvements -- 112,128 (112,128)
----------------------------------------------
TOTAL PROPERTY & EQUIP., AT COST -- 4,186,438 (4,186,438)
Accum. Depreciation -- (3,365,129) 3,365,129
----------------------------------------------
TOTAL PROPERTY & EQUIP., NET -- 821,309 (821,309)
----------------------------------------------
Other Assets -- 129,431 (129,431)
Investment & Intercompany in Subsidiaries 0 0 --
----------------------------------------------
TOTAL ASSETS 3,277,281 19,846,744 (16,569,463)
==============================================
POST PETITION CURRENT LIABILITIES
Accounts payable 3,506 885,349 (881,843)
Accounts payable - remediation systems -- 719,416 (719,416)
Line of Credit with GMAC 10,225,231 26,323,895 (16,098,664)
Transfer of Pre-petition preference
collections from vendors (997,252) (991,252) (6,000)
----------------------------------------------
Line of Credit with GMAC, net of
pre-petition preferences 9,227,979 25,332,643 (16,104,664)
Accrued expenses, excluding bankruptcy
costs 100,163 642,360 (542,197)
Accrued bankruptcy costs 1,195,861 1,611,390 (415,529)
Estimated claims against cash held in
escrow 2,736,631 2,536,420 200,211
Intercompany - GMAC -- -- --
----------------------------------------------
TOTAL POST PETITION CURRENT LIABILITIES 13,264,140 31,727,578 (18,463,438)
Intercompany Notes Payable -- -- --
Pre Petition Preference collections from
vendors 997,252 991,252 6,000
Pre Petition Liabilities 15,416,263 15,416,263 --
Pre Petition Estimated Construction Claims 1,800,000 1,800,000 --
----------------------------------------------
TOTAL LIABILITIES 31,477,655 49,935,093 (18,457,438)
----------------------------------------------
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 (3,350,376) (3,350,376) --
Y-T-D net income post petition (36,868,562) (38,756,537) 1,887,975
----------------------------------------------
TOTAL SHAREHOLDERS' EQUITY (28,200,374) (30,088,349) 1,887,975
----------------------------------------------
TOTAL LIABILITIES & SHAREHOLDERS' EQUITY 3,277,281 19,846,744 (16,569,463)
==============================================
</TABLE>
See accompanying notes to financial statement information
<PAGE>
OMEGA ENVIRONMENTAL, INC. EXHIBIT 99.1
Debtor In Possession Case #97-06084
Comparative Statement of
Operations Information
<TABLE>
<CAPTION>
(unaudited) (unaudited) (unaudited) (unaudited)
Month Ended Month Ended Month Ended Month Ended
May 31, 2000 April 30, 2000 May 31, 2000 April 30, 2000
ESD ESD Change Corporate Corporate Change
------------------------------------------- -------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
Sales 809,241 791,241 18,000 -- -- --
Cost of Sales 547,413 628,569 (81,156) -- -- --
------------------------------------------- -------------------------------------------
Gross Profit 261,828 162,672 99,156 -- -- --
Selling, General, and Administrative 253,084 425,610 (172,526) 64,658 81,955 (17,297)
------------------------------------------- -------------------------------------------
Income (Loss) From Operations 8,744 (262,938) 271,682 (64,658) (81,955) 17,297
Other Income (Expense):
I/C Interest Income (Expense) (29,513) (58,862) 29,349 29,513 58,862 (29,349)
Interest Expense (1,929) (43) (1,886) (220,937) (246,290) 25,353
Gain (loss) on Asset Disposition 2,425,778 24,592 2,401,186 100,714 -- 100,714
Other Expense -- -- -- 232,327 (2,425) 234,752
------------------------------------------- -------------------------------------------
Total Other (Expense) 2,394,336 (34,313) 2,428,649 141,617 (189,853) 331,470
Net Income (Loss) Before Bankruptcy
Administrative Expenses 2,403,080 (297,251) 2,700,331 76,959 (271,808) 348,767
Bankruptcy Administrative Expenses (100,067) (252,372) 152,305
------------------------------------------- -------------------------------------------
Net Income (Loss) 2,403,080 (297,251) 2,700,331 (23,108) (524,180) 501,072
------------------------------------------- -------------------------------------------
</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
May 31, 2000 April 30, 2000 May 31, 2000 April 30, 2000
Continuing Continuing Discontinued Discontinued
Operations Operations Change Operations Operations Change
------------------------------------------- -----------------------------------------
<S> <C> <C> <C> <C> <C> <C>
Sales 809,241 791,241 18,000 -- -- --
Cost of Sales 547,413 628,569 (81,156) -- -- --
------------------------------------------- -----------------------------------------
Gross Profit 261,828 162,672 99,156 -- -- --
Selling, General, and Administrative 317,742 507,565 (189,823) -- -- --
------------------------------------------- -----------------------------------------
Income (Loss) From Operations (55,914) (344,893) 288,979 -- -- --
Other Income (Expense):
I/C Interest Income (Expense) -- -- -- -- -- --
Interest Expense (222,866) (246,333) 23,467 -- -- --
Gain (loss) on Asset Disposition 2,526,492 24,592 2,501,900 -- -- --
Other Expense 232,327 (2,425) 234,752 (491,997) (1,290) (490,707)
------------------------------------------- -----------------------------------------
Total Other (Expense) 2,535,953 (224,166) 2,760,119 (491,997) (1,290) (490,707)
Net Income (Loss) Before Bankruptcy
Administrative Expenses 2,480,039 (569,059) 3,049,098 (491,997) (1,290) (490,707)
Bankruptcy Administrative Expenses (100,067) (252,372) 152,305 -- -- --
------------------------------------------- -----------------------------------------
Net Income (Loss) 2,379,972 (821,431) 3,201,403 (491,997) (1,290) (490,707)
=========================================== =========================================
</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
May 31, 2000 April 30, 2000
Combined Combined
Final Final Change
-------------------------------------
<S> <C> <C> <C>
Sales 809,241 791,241 18,000
Cost of Sales 547,413 628,569 (81,156)
-------------------------------------
Gross Profit 261,828 162,672 99,156
Selling, General, and Administrative 317,742 507,565 (189,823)
-------------------------------------
Income (Loss) From Operations (55,914) (344,893) 288,979
Other Income (Expense):
I/C Interest Income (Expense) -- -- --
Interest Expense (222,866) (246,333) 23,467
Gain (loss) on Asset Disposition 2,526,492 24,592 2,501,900
Other Expense (259,670) (3,715) (255,955)
-------------------------------------
Total Other (Expense) 2,043,956 (225,456) 2,269,412
Net Income (Loss) Before Bankruptcy
Administrative Expenses 1,988,042 (570,349) 2,558,391
Bankruptcy Administrative Expenses (100,067) (252,372) 152,305
-------------------------------------
Net Income (Loss) 1,887,975 (822,721) 2,710,696
=====================================
</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
May 31, 2000 April 30, 2000 Change
------------ ------------ ------------
<S> <C> <C> <C>
Cash flows from operating activities:
Net income (loss) $ 1,887,975 $ (822,721) $ 2,710,696
Adjustments to reconcile net loss to net cash
(used in) provided by operating activities:
Depreciation 29,015 29,896 (881)
Write off of accounts receivable -- 112,610 (112,610)
(Gain) / Loss on sale of property and equipment 792,294 (24,592) 816,886
Change in certain assets & liabilities:
(Increase) decrease in:
Receivables, net 10,284,192 27,380 10,256,812
Receivables - remediation systems, net 157,263 61,657 95,606
Costs in excess of billings 4,507,020 97,077 4,409,943
Costs in excess of billings - remediation systems 562,153 102,560 459,593
Prepaids & other assets 303,421 (91,406) 394,827
Increase (decrease) in:
Accounts payable - remediation systems (719,416) (164,218) (555,198)
Accrued expenses (936,919) 229,613 (1,166,532)
Other net changes in assets and liabilities 306,815 240 306,575
------------ ------------ ------------
Total adjustments 14,403,995 292,073 14,111,922
------------ ------------ ------------
Net cash provided by (used in) operating activities 16,291,970 (530,648) 16,822,618
Cash flows from investing activities:
Proceeds from sale of equipment 0 53,100 (53,100)
Additions to property and equipment 0 (8,185) 8,185
------------ ------------ ------------
Net cash provided by (used in) investing activities 0 44,915 (44,915)
Cash flows from financing and other activities:
Net proceeds (repayments) from revolver credit loan (16,098,664) 572,794 (16,671,458)
Proceeds from pre-petition preference payment receipts 6,000 27,968 (21,968)
(Reduction) Increase of pre-petition liabilities (6,000) (27,968) 21,968
------------ ------------ ------------
Net cash provided by (used in) financing activities (16,098,664) 572,794 (16,671,458)
------------ ------------ ------------
Net increase (decrease) in cash 193,306 87,061 106,245
CASH AT BEGINNING OF PERIOD 258,164 171,103 87,061
------------ ------------ ------------
CASH AT END OF PERIOD $ 451,470 $ 258,164 $ 193,306
============ ============ ============
</TABLE>
See accompanying notes to financial statement information
