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Previous: STRATUS FUND INC, 40-17F2, 2000-01-21 |
Next: PRICE T ROWE BALANCED FUND INC, 497K3B, 2000-01-21 |
<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) January 15, 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 January 15, 2000, the Registrant filed unaudited financial
statement information as of and for each of the months ended
November 30, 1999 and October 31, 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 November 30, 1999
and October 31, 1999 with related Notes to Financial
Statement Information.
<PAGE>
SIGNATURES
Pursuant to the requirements of the Securities and Exchange Act of 1934, the
Registrant has duly caused this report to be signed on its behalf by the
undersigned hereunto duly authorized.
OMEGA ENVIRONMENTAL, INC.
(Registrant)
Date: January 15, 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)
NOVEMBER 30, 1999 OCTOBER 31, 1999
ESD ESD CHANGE
---------------------------------------------------------------------
<S> <C> <C> <C>
CURRENT ASSETS
Cash 23,615 - 23,615
Restricted cash held in escrow 2,703,890 2,701,942 1,948
Accounts receivable
A/R--trade 11,089,280 11,314,549 (225,269)
A/R--employees 3,141 3,994 (853)
A/R--supplemental 1,242,986 1,254,455 (11,469)
A/R--miscellaneous 10,078 11,579 (1,501)
Allowance for doubtful accounts (1,581,795) (1,612,519) 30,724
---------------------------------------------------------------------
Accounts receivable, net 10,763,690 10,972,058 (208,368)
---------------------------------------------------------------------
Costs and earnings in excess of billings 5,108,116 5,372,537 (264,421)
Prepaid expenses 113,861 102,495 11,366
Other current assets -
---------------------------------------------------------------------
TOTAL CURRENT ASSETS 18,713,172 19,149,032 (435,860)
---------------------------------------------------------------------
PROPERTY AND EQUIPMENT
Field equipment 2,217,994 2,363,116 (145,122)
Automotive equipment 921,724 954,586 (32,862)
Office furniture and equipment 1,004,179 1,001,487 2,692
Land, Building, and leasehold improvements 107,729 107,729 -
---------------------------------------------------------------------
TOTAL PROPERTY & EQUIP., AT COST 4,251,626 4,426,918 (175,292)
Accum. Depreciation (3,285,788) (3,447,302) 161,514
---------------------------------------------------------------------
TOTAL PROPERTY & EQUIP., NET 965,838 979,616 (13,778)
---------------------------------------------------------------------
Other Assets 91,773 121,773 (30,000)
Investment & Intercompany in Subsidiaires -
---------------------------------------------------------------------
TOTAL ASSETS 19,770,783 20,250,421 (479,638)
---------------------------------------------------------------------
---------------------------------------------------------------------
POST PETITION CURRENT LIABILITIES
Accounts payable 1,153,595 1,146,663 6,932
Line of Credit -
Accrued expenses, excluding bankruptcy costs 779,895 779,241 654
Accrued bankruptcy costs -
Estimated claims against cash held in escrow 2,505,700 2,503,751 1,949
Intercompany - BNYFC 6,999,083 7,449,623 (450,540)
---------------------------------------------------------------------
TOTAL POST PETITION CURRENT LIABILITIES 11,438,273 11,879,278 (441,005)
Intercompany Notes Payable 7,926,358 7,926,358 -
Pre Petition Liabilities - - -
Pre Petition Estimated Construction Claims -
---------------------------------------------------------------------
TOTAL LIABILITIES 19,364,631 19,805,636 (441,005)
---------------------------------------------------------------------
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) (8,531) (1)
Y-T-D net income post petition (5,114,653) (5,076,021) (38,632)
---------------------------------------------------------------------
TOTAL SHAREHOLDERS' EQUITY 406,152 444,785 (38,633)
---------------------------------------------------------------------
TOTAL LIABILITIES & SHAREHOLDERS' EQUITY 19,770,783 20,250,421 (479,638)
---------------------------------------------------------------------
---------------------------------------------------------------------
<PAGE>
<CAPTION>
(UNAUDITED) (UNAUDITED)
NOVEMBER 30, 1999 OCTOBER 31, 1999
CORPORATE CORPORATE CHANGE
--------------------------------------------------------------------
<S> <C> <C> <C>
CURRENT ASSETS
Cash 489,448 9,575 479,873
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 137,644 163,189 (25,545)
Other current assets -
--------------------------------------------------------------------
TOTAL CURRENT ASSETS 775,092 320,764 454,328
--------------------------------------------------------------------
PROPERTY AND EQUIPMENT
Field equipment - - -
Automotive equipment - - -
Office furniture and equipment 34,872 34,872 -
Land, Building, and leasehold improvements - - -
--------------------------------------------------------------------
TOTAL PROPERTY & EQUIP., AT COST 34,872 34,872 -
Accum. Depreciation (34,231) (34,179) (52)
--------------------------------------------------------------------
TOTAL PROPERTY & EQUIP., NET 641 693 (52)
--------------------------------------------------------------------
Other Assets 41,622 41,622 -
Investment & Intercompany in Subsidiaires 74,375,431 74,375,431 -
--------------------------------------------------------------------
TOTAL ASSETS 75,192,786 74,738,510 454,276
--------------------------------------------------------------------
--------------------------------------------------------------------
POST PETITION CURRENT LIABILITIES
Accounts payable 63,645 76,335 (12,690)
Line of Credit 24,482,271 24,293,707 188,564
Accrued expenses, excluding bankruptcy costs 22,503 21,293 1,210
Accrued bankruptcy costs 1,905,345 1,780,346 124,999
Estimated claims against cash held in escrow - - -
Intercompany - BNYFC (17,291,585) (17,740,701) 449,116
--------------------------------------------------------------------
TOTAL POST PETITION CURRENT LIABILITIES 9,182,179 8,430,980 751,199
Intercompany Notes Payable -
Pre Petition Liabilities 4,176,328 4,107,442 68,886
Pre Petition Estimated Construction Claims -
--------------------------------------------------------------------
TOTAL LIABILITIES 13,358,507 12,538,422 820,085
--------------------------------------------------------------------
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) (895,498) (1,504,436)
Y-T-D net income post petition (13,238,338) (14,376,965) 1,138,627
--------------------------------------------------------------------
TOTAL SHAREHOLDERS' EQUITY 61,834,279 62,200,088 (365,809)
--------------------------------------------------------------------
TOTAL LIABILITIES & SHAREHOLDERS' EQUITY 75,192,786 74,738,510 454,276
--------------------------------------------------------------------
--------------------------------------------------------------------
</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)
NOVEMBER 30, 1999 OCTOBER 31, 1999
CONTINUING CONTINUING
OPERATIONS OPERATIONS CHANGE
--------------------------------------------------------------------
<S> <C> <C> <C>
CURRENT ASSETS
Cash 513,063 9,575 503,488
Restricted cash held in escrow 2,703,890 2,701,942 1,948
Accounts receivable
A/R--trade 11,089,280 11,314,549 (225,269)
A/R--employees 3,141 3,994 (853)
A/R--supplemental 1,242,986 1,254,455 (11,469)
A/R--miscellaneous 1,234,172 1,235,673 (1,501)
Allowance for doubtful accounts (2,657,889) (2,688,613) 30,724
--------------------------------------------------------------------
Accounts receivable, net 10,911,690 11,120,058 (208,368)
--------------------------------------------------------------------
Costs and earnings in excess of billings 5,108,116 5,372,537 (264,421)
Prepaid expenses 251,505 265,684 (14,179)
Other current assets - - -
--------------------------------------------------------------------
TOTAL CURRENT ASSETS 19,488,264 19,469,796 18,468
--------------------------------------------------------------------
PROPERTY AND EQUIPMENT
Field equipment 2,217,994 2,363,116 (145,122)
Automotive equipment 921,724 954,586 (32,862)
Office furniture and equipment 1,039,051 1,036,359 2,692
Land, Building, and leasehold improvements 107,729 107,729 -
--------------------------------------------------------------------
TOTAL PROPERTY & EQUIP., AT COST 4,286,498 4,461,790 (175,292)
Accum. Depreciation (3,320,019) (3,481,481) 161,462
--------------------------------------------------------------------
TOTAL PROPERTY & EQUIP., NET 966,479 980,309 (13,830)
--------------------------------------------------------------------
Other Assets 133,395 163,395 (30,000)
Investment & Intercompany in Subsidiaires 74,375,431 74,375,431 -
--------------------------------------------------------------------
TOTAL ASSETS 94,963,569 94,988,931 (25,362)
--------------------------------------------------------------------
--------------------------------------------------------------------
POST PETITION CURRENT LIABILITIES
Accounts payable 1,217,240 1,222,998 (5,758)
Line of Credit 24,482,271 24,293,707 188,564
Accrued expenses, excluding bankruptcy costs 802,398 800,534 1,864
Accrued bankruptcy costs 1,905,345 1,780,346 124,999
Estimated claims against cash held in escrow 2,505,700 2,503,751 1,949
Intercompany - BNYFC (10,292,502) (10,291,078) (1,424)
--------------------------------------------------------------------
TOTAL POST PETITION CURRENT LIABILITIES 20,620,452 20,310,258 310,194
Intercompany Notes Payable 7,926,358 7,926,358 -
Pre Petition Liabilities 4,176,328 4,107,442 68,886
Pre Petition Estimated Construction Claims - - -
--------------------------------------------------------------------
TOTAL LIABILITIES 32,723,138 32,344,058 379,080
--------------------------------------------------------------------
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) (904,029) (1,504,437)
Y-T-D net income post petition (18,352,991) (19,452,986) 1,099,995
--------------------------------------------------------------------
TOTAL SHAREHOLDERS' EQUITY 62,240,431 62,644,873 (404,442)
--------------------------------------------------------------------
TOTAL LIABILITIES & SHAREHOLDERS' EQUITY 94,963,569 94,988,931 (25,362)
--------------------------------------------------------------------
--------------------------------------------------------------------
<CAPTION>
(UNAUDITED) (UNAUDITED)
NOVEMBER 30, 1999 OCTOBER 31, 1999
DISCONTINUED DISCONTINUED
OPERATIONS OPERATIONS CHANGE
-----------------------------------------------------------------
<S> <C> <C> <C>
CURRENT ASSETS
Cash - - -
Restricted cash held in escrow 20,861 20,861 -
Accounts receivable
A/R--trade 3,756,148 3,756,148 -
A/R--employees -
A/R--supplemental -
A/R--miscellaneous - - -
Allowance for doubtful accounts (2,537,882) (2,528,961) (8,921)
-----------------------------------------------------------------
Accounts receivable, net 1,218,266 1,227,187 (8,921)
-----------------------------------------------------------------
Costs and earnings in excess of billings -
Prepaid expenses - - -
Other current assets - - -
-----------------------------------------------------------------
TOTAL CURRENT ASSETS 1,239,127 1,248,048 (8,921)
-----------------------------------------------------------------
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 1,240,127 1,249,048 (8,921)
-----------------------------------------------------------------
-----------------------------------------------------------------
POST PETITION CURRENT LIABILITIES
Accounts payable - - -
Line of Credit -
Accrued expenses, excluding bankruptcy costs 69,976 69,976 -
Accrued bankruptcy costs - - -
Estimated claims against cash held in escrow 20,807 20,807 -
Intercompany - BNYFC 10,292,502 10,291,078 1,424
-----------------------------------------------------------------
TOTAL POST PETITION CURRENT LIABILITIES 10,383,285 10,381,861 1,424
Intercompany Notes Payable 4,320,625 4,320,625 -
Pre Petition Liabilities 11,809,110 11,809,110 -
Pre Petition Estimated Construction Claims 1,800,000 1,800,000 -
-----------------------------------------------------------------
TOTAL LIABILITIES 28,313,020 28,311,596 1,424
-----------------------------------------------------------------
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 (941,907) 1,441,677
Y-T-D net income post petition (18,717,787) (17,265,765) (1,452,022)
-----------------------------------------------------------------
TOTAL SHAREHOLDERS' EQUITY (27,072,893) (27,062,548) (10,345)
-----------------------------------------------------------------
TOTAL LIABILITIES & SHAREHOLDERS' EQUITY 1,240,127 1,249,048 (8,921)
-----------------------------------------------------------------
-----------------------------------------------------------------
</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)
NOVEMBER 30, 1999 OCTOBER 31, 1999
COMBINED COMBINED
FINAL FINAL CHANGE
-----------------------------------------------------------------
<S> <C> <C> <C>
CURRENT ASSETS
Cash 513,063 9,575 503,488
Restricted cash held in escrow 2,724,751 2,722,803 1,948
Accounts receivable
A/R--trade 14,845,428 15,070,697 (225,269)
A/R--employees 3,141 3,994 (853)
A/R--supplemental 1,242,986 1,254,455 (11,469)
A/R--miscellaneous 1,234,172 1,235,673 (1,501)
Allowance for doubtful accounts (5,195,771) (5,217,574) 21,803
-----------------------------------------------------------------
Accounts receivable, net 12,129,956 12,347,245 (217,289)
-----------------------------------------------------------------
Costs and earnings in excess of billings 5,108,116 5,372,537 (264,421)
Prepaid expenses 251,505 265,684 (14,179)
Other current assets - - -
-----------------------------------------------------------------
TOTAL CURRENT ASSETS 20,727,391 20,717,844 9,547
-----------------------------------------------------------------
PROPERTY AND EQUIPMENT
Field equipment 2,218,994 2,364,116 (145,122)
Automotive equipment 921,724 954,586 (32,862)
Office furniture and equipment 1,039,051 1,036,359 2,692
Land, Building, and leasehold improvements 107,729 107,729 -
-----------------------------------------------------------------
TOTAL PROPERTY & EQUIP., AT COST 4,287,498 4,462,790 (175,292)
Accum. Depreciation (3,320,019) (3,481,481) 161,462
-----------------------------------------------------------------
TOTAL PROPERTY & EQUIP., NET 967,479 981,309 (13,830)
-----------------------------------------------------------------
Other Assets 133,395 163,395 (30,000)
Investment & Intercompany in Subsidiaires 0 0 -
-----------------------------------------------------------------
TOTAL ASSETS 21,828,265 21,862,548 (34,283)
-----------------------------------------------------------------
-----------------------------------------------------------------
POST PETITION CURRENT LIABILITIES
Accounts payable 1,217,240 1,222,998 (5,758)
Line of Credit 24,482,271 24,293,707 188,564
Accrued expenses, excluding bankruptcy costs 872,374 870,510 1,864
Accrued bankruptcy costs 1,905,345 1,780,346 124,999
Estimated claims against cash held in escrow 2,526,507 2,524,558 1,949
Intercompany - BNYFC - - -
-----------------------------------------------------------------
TOTAL POST PETITION CURRENT LIABILITIES 31,003,737 30,692,119 311,618
Intercompany Notes Payable - - -
Pre Petition Liabilities 15,985,438 15,916,552 68,886
Pre Petition Estimated Construction Claims 1,800,000 1,800,000 -
-----------------------------------------------------------------
TOTAL LIABILITIES 48,789,175 48,408,671 380,504
-----------------------------------------------------------------
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) (1,845,936) (62,760)
Y-T-D net income post petition (37,070,778) (36,718,751) (352,027)
-----------------------------------------------------------------
TOTAL SHAREHOLDERS' EQUITY (26,960,910) (26,546,123) (414,787)
-----------------------------------------------------------------
TOTAL LIABILITIES & SHAREHOLDERS' EQUITY 21,828,265 21,862,548 (34,283)
-----------------------------------------------------------------
-----------------------------------------------------------------
</TABLE>
See accompanying notes to financial statement information
<PAGE>
EXHIBIT 99.1
OMEGA ENVIRONMENTAL, INC.3
DEBTOR IN POSSESSION CASE #97-06084
COMPARATIVE STATEMENT OF
OPERATIONS INFORMATION
<TABLE>
<CAPTION>
(UNAUDITED) (UNAUDITED)
MONTH ENDED MONTH ENDED
NOVEMBER 30, 1999 OCTOBER 31, 1999
ESD ESD CHANGE
-----------------------------------------------------------------
<S> <C> <C> <C>
Sales 1,283,021 1,725,159 (442,138)
Cost of Sales 1,013,179 1,341,891 (328,712)
-----------------------------------------------------------------
Gross Profit 269,842 383,268 (113,426)
Selling, General, and Administrative 363,247 356,652 6,595
-----------------------------------------------------------------
Income (Loss) From Operations (93,405) 26,616 (120,021)
Other Income(Expense):
I/C Interest Income (Expense) (63,901) (66,923) 3,022
Interest Expense 103 - 103
Interest Income - - -
Gain (loss) on Asset Disposition 118,570 17,182 101,388
Other Expense - 21 (21)
-----------------------------------------------------------------
Total Other (Expense) 54,772 (49,720) 104,492
Net Income (Loss) Before Bankruptcy
Administrative Expenses (38,633) (23,104) (15,529)
Bankruptcy Administrative Expenses
-----------------------------------------------------------------
Net Income (Loss) (38,633) (23,104) (15,529)
-----------------------------------------------------------------
-----------------------------------------------------------------
<CAPTION>
(UNAUDITED) (UNAUDITED)
MONTH ENDED MONTH ENDED
NOVEMBER 30, 1999 OCTOBER 31, 1999
CORPORATE CORPORATE CHANGE
-----------------------------------------------------------------
<S> <C> <C> <C>
Sales - - -
Cost of Sales - - -
-----------------------------------------------------------------
Gross Profit - - -
Selling, General, and Administrative 59,841 74,781 (14,940)
-----------------------------------------------------------------
Income (Loss) From Operations (59,841) (74,781) 14,940
Other Income(Expense):
I/C Interest Income (Expense) 63,901 66,923 (3,022)
Interest Expense (217,619) (222,148) 4,529
Interest Income -
Gain (loss) on Asset Disposition - - -
Other Expense (27,250) (53,760) 26,510
-----------------------------------------------------------------
Total Other (Expense) (180,968) (208,985) 28,017
Net Income (Loss) Before Bankruptcy
Administrative Expenses (240,809) (283,766) 42,957
Bankruptcy Administrative Expenses (125,000) (125,000) -
-----------------------------------------------------------------
Net Income (Loss) (365,809) (408,766) 42,957
-----------------------------------------------------------------
-----------------------------------------------------------------
</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
NOVEMBER 30, 1999 OCTOBER 31, 1999
CONTINUING CONTINUING
OPERATIONS OPERATIONS CHANGE
------------------------------------------------------------------
<S> <C> <C> <C>
Sales 1,283,021 1,725,159 (442,138)
Cost of Sales 1,013,179 1,341,891 (328,712)
------------------------------------------------------------------
Gross Profit 269,842 383,268 (113,426)
Selling, General, and Administrative 423,088 431,433 (8,345)
------------------------------------------------------------------
Income (Loss) From Operations (153,246) (48,165) (105,081)
Other Income(Expense):
I/C Interest Income (Expense) 0 0 0
Interest Expense (217,516) (222,148) 4,632
Interest Income 0 0 0
Gain (loss) on Asset Disposition 118,570 17,182 101,388
Other Expense (27,250) (53,739) 26,489
------------------------------------------------------------------
Total Other (Expense) (126,196) (258,705) 132,509
Net Income (Loss) Before Bankruptcy
Administrative Expenses (279,442) (306,870) 27,428
Bankruptcy Administrative Expenses (125,000) (125,000) 0
------------------------------------------------------------------
Net Income (Loss) (404,442) (431,870) 27,428
------------------------------------------------------------------
------------------------------------------------------------------
<CAPTION>
(UNAUDITED) (UNAUDITED)
MONTH ENDED MONTH ENDED
NOVEMBER 30, 1999 OCTOBER 31, 1999
DISCONTINUED DISCONTINUED
OPERATIONS OPERATIONS CHANGE
------------------------------------------------------------
<S> <C> <C> <C>
Sales 0 0 0
Cost of Sales 0 0 0
------------------------------------------------------------
Gross Profit 0 0 0
Selling, General, and Administrative 0 0 0
------------------------------------------------------------
Income (Loss) From Operations 0 0 0
Other Income(Expense):
I/C Interest Income (Expense) 0 0 0
Interest Expense 0 0 0
Interest Income 0
Gain (loss) on Asset Disposition - 0 0
Other Expense (10,345) 1,063 (11,408)
------------------------------------------------------------
Total Other (Expense) (10,345) 1,063 (11,408)
Net Income (Loss) Before Bankruptcy
Administrative Expenses (10,345) 1,063 (11,408)
Bankruptcy Administrative Expenses 0 0 0
------------------------------------------------------------
Net Income (Loss) (10,345) 1,063 (11,408)
------------------------------------------------------------
------------------------------------------------------------
</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
NOVEMBER 30, 1999 OCTOBER 31, 1999
COMBINED COMBINED
FINAL FINAL CHANGE
---------------------------------------------------------------
<S> <C> <C> <C>
Sales 1,283,021 1,725,159 (442,138)
Cost of Sales 1,013,179 1,341,891 (328,712)
---------------------------------------------------------------
Gross Profit 269,842 383,268 (113,426)
Selling, General, and Administrative 423,088 431,433 (8,345)
---------------------------------------------------------------
Income (Loss) From Operations (153,246) (48,165) (105,081)
Other Income(Expense):
I/C Interest Income (Expense) 0 0 0
Interest Expense (217,516) (222,148) 4,632
Interest Income 0 0 0
Gain (loss) on Asset Disposition 118,570 17,182 101,388
Other Expense (37,595) (52,676) 15,081
---------------------------------------------------------------
Total Other (Expense) (136,541) (257,642) 121,101
Net Income (Loss) Before Bankruptcy
Administrative Expenses (289,787) (305,807) 16,020
Bankruptcy Administrative Expenses (125,000) (125,000) 0
---------------------------------------------------------------
Net Income (Loss) (414,787) (430,807) 16,020
---------------------------------------------------------------
---------------------------------------------------------------
</TABLE>
See accompanying notes to financial statement information
<PAGE>
EXHIBIT 99.1
OMEGA ENVIRONMENTAL, INC.
DEBTOR IN POSSESSION CASE # 97 - 06084
COMPARATIVE COMBINED STATEMENT OF CASH FLOWS INFORMATION
<TABLE>
<CAPTION>
(UNAUDITED) (UNAUDITED)
MONTH ENDED MONTH ENDED
NOVEMBER 30, 1999 OCTOBER 31, 1999 CHANGE
---------------------- ------------------- ------------
<S> <C> <C> <C>
Cash flows from operating activities:
Net loss ($414,787) ($430,807) $16,020
Adjustments to reconcile net loss to net cash
(used in) provided by operating activities:
Depreciation 42,455 48,046 (5,591)
Change in estimate of pre-petition construction claims 0 0 0
Write off of accounts payable in discontinued operations (118,570) (17,182) (101,388)
(Gain) / Loss on sale of property and equipment
Change in certain assets & liabilities:
(Increase) decrease in: 217,289 (9,127) 226,416
Receivables, net 264,421 (380,491) 644,912
Costs in excess of billings 14,179 (121,501) 135,680
Prepaids & other assets
Increase (decrease) in: (5,758) 414,085 (419,843)
Accounts payable 126,863 101,824 25,039
Accrued expenses 0 0 0
Other net changes in assets and liabilities 570,880 37,054 533,826
---------------------- ------------------- ------------
Total adjustments 156,093 (393,753) 549,846
---------------------- ------------------- ------------
Net cash provided by (used in) operating activities
Cash flows from investing activities : 126,377 25,000 101,377
Proceeds from sale of equipment (36,432) (108,054) 71,622
Additions to property and equipment 89,945 (83,054) 172,999
---------------------- ------------------- ------------
Net cash provided by (used in) investing activities
Cash flows from financing and other activities:
Net proceeds (repayments) from revolver credit loan 188,564 262,617 (74,053)
Proceeds from pre-petition preference payment receipts 68,886 61,957 6,929
(Reduction) Increase of pre-petition liabilities 0 0 0
---------------------- ------------------- ------------
Net cash provided by (used in) financing activities 257,450 324,574 (67,124)
---------------------- ------------------- ------------
Net increase (decrease) in cash 503,488 (152,233) 655,721
CASH AT BEGINNING OF PERIOD 9,575 161,808 (152,233)
---------------------- ------------------- ------------
CASH AT END OF PERIOD $513,063 $9,575 $503,488
---------------------- ------------------- ------------
---------------------- ------------------- ------------
</TABLE>
See accompanying notes to financial statement information
<PAGE>
EXHIBIT 99.1
Omega Environmental, Inc.
Debtor in Possession Case # 97-06084
November 30, 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 November 30, 1999, the Company's borrowings from BNY Financial Corporation
("BNYFC") were $24,482,271.
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 Liabilities
Beginning in June 1999, Omega began collecting pre-petition preference
recoveries are accounted for in the pre-petition liabilities section of the
corporate balance sheet. The total collected as of month end November was
$569,466.
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