<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) DECEMBER 31, 1999
OMEGA ENVIRONMENTAL, INC.
(EXACT NAME OF REGISTRANT AS SPECIFIED IN ITS CHARTER)
Commission File Number 0-20267
DELAWARE 91-1499751
(STATE OR OTHER JURISDICTION OF (I.R.S. EMPLOYER
INCORPORATION OR ORGANIZATION) IDENTIFICATION NO.)
550 KIRKLAND WAY, SUITE 200, KIRKLAND, WASHINGTON 98033
PO BOX 3005 BOTHELL, WASHINGTON 98041-3005
(ADDRESS OF PRINCIPAL EXECUTIVE OFFICES) (ZIP CODE)
425-739-2072
(REGISTRANT'S TELEPHONE NUMBER, INCLUDING AREA CODE)
-----------------------------------------------------------------------------
(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 December 31, 1999, the Registrant filed unaudited financial
statement information as of and for each of the months ended
October 31, 1999 and September 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 October 31, 1999 and
September 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: December 31, 1999 /s/ Donald E. Condit
------------------------------------------
Donald E. Condit
Chief Financial Officer
<PAGE>
OMEGA ENVIRONMENTAL, INC. EXHIBIT 99.1
DEBTOR IN POSESSION CASE #97-06084
COMPARATIVE BALANCE SHEET INFORMATION
<TABLE>
<CAPTION>
(UNAUDITED) (UNAUDITED) (UNAUDITED) (UNAUDITED)
OCTOBER 31, 1999 SEPTEMBER 30, 1999 OCTOBER 31, 1999 SEPTEMBER 30, 1999
ESD ESD CHANGE CORPORATE CORPORATE CHANGE
---------------------------------------------- ------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
CURRENT ASSETS
Cash - 87,267 (87,267) 9,575 74,541 (64,966)
Restricted cash held in escrow 2,701,942 2,702,458 (516) -
Accounts receivable
A/R--trade 11,314,549 11,351,633 (37,084) - - -
A/R--interco - 1,938 (1,938) - - -
A/R--employees 3,994 3,655 339 - - -
A/R--supplemental 1,254,455 1,261,071 (6,616) -
A/R--miscellaneous 11,579 11,579 - 1,224,094 1,224,094 -
Allowance for doubtful accounts (1,612,519) (1,665,007) 52,488 (1,076,094) (1,076,094) -
---------------------------------------------- ------------------------------------------------
Accounts receivable, net 10,972,058 10,964,869 7,189 148,000 148,000 -
---------------------------------------------- ------------------------------------------------
Costs and earnings in excess of
billings 5,372,537 4,992,046 380,491 -
Prepaid expenses 102,495 83,552 18,943 163,189 60,631 102,558
Other current assets - -
---------------------------------------------- ------------------------------------------------
TOTAL CURRENT ASSETS 19,149,032 18,830,192 318,840 320,764 283,172 37,592
---------------------------------------------- ------------------------------------------------
PROPERTY AND EQUIPMENT
Field equipment 2,363,116 2,381,172 (18,056) - - -
Automotive equipment 954,586 886,849 67,737 - - -
Office furniture and equipment 1,001,487 997,837 3,650 34,872 34,872 -
Land, Building, and leasehold
improvements 107,729 107,729 - - - -
---------------------------------------------- ------------------------------------------------
TOTAL PROPERTY & EQUIP., AT COST 4,426,918 4,373,587 53,331 34,872 34,872 -
Accum. Depreciation (3,447,302) (3,446,212) (1,090) (34,179) (34,128) (51)
---------------------------------------------- ------------------------------------------------
TOTAL PROPERTY & EQUIP., NET 979,616 927,375 52,241 693 744 (51)
---------------------------------------------- ------------------------------------------------
Long-term accounts receivable -
Other (Texas) - - - - - -
Reserve for Long-term accounts
receivable - -
---------------------------------------------- ------------------------------------------------
Long-term accounts receivable -
Other (Texas), net - - - - - -
Other Assets 121,773 123,173 (1,400) 41,622 41,622 -
Investment & Intercompany in
Subsidiaires - 74,375,431 74,375,431 -
---------------------------------------------- ------------------------------------------------
TOTAL ASSETS 20,250,421 19,880,740 369,681 74,738,510 74,700,969 37,541
---------------------------------------------- ------------------------------------------------
---------------------------------------------- ------------------------------------------------
POST PETITION CURRENT LIABILITIES
Accounts payable 1,146,663 774,866 371,797 76,335 34,047 42,288
Line of Credit - 24,293,707 24,031,090 262,617
Accrued expenses, excluding
bankruptcy costs 779,241 811,207 (31,966) 21,293 12,503 8,790
Accrued bankruptcy costs - 1,780,346 1,655,346 125,000
Estimated claims against cash
held in escrow 2,503,751 2,504,267 (516) - - -
Intercompany - BNYFC 7,449,623 7,396,153 53,470 (17,740,701) (17,688,294) (52,407)
Intercompany payable - - 1,938 (1,938)
---------------------------------------------- ------------------------------------------------
TOTAL POST PETITION CURRENT
LIABILITIES 11,879,278 11,486,493 392,785 8,430,980 8,046,630 384,350
Intercompany Notes Payable 7,926,358 7,926,358 - -
Pre Petition Liabilities - - - 4,107,442 4,045,485 61,957
Pre Petition Estimated
Construction Claims - -
---------------------------------------------- ------------------------------------------------
TOTAL LIABILITIES 19,805,636 19,412,851 392,785 12,538,422 12,092,115 446,307
---------------------------------------------- ------------------------------------------------
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 (8,531) (8,531) - (895,498) (895,498) -
Y-T-D net income post petition (5,076,021) (5,052,917) (23,104) (14,376,965) (13,968,199) (408,766)
---------------------------------------------- ------------------------------------------------
TOTAL SHAREHOLDERS' EQUITY 444,785 467,889 (23,104) 62,200,088 62,608,854 (408,766)
---------------------------------------------- ------------------------------------------------
TOTAL LIABILITIES & SHAREHOLDERS'
EQUITY 20,250,421 19,880,740 369,681 74,738,510 74,700,969 37,541
---------------------------------------------- ------------------------------------------------
---------------------------------------------- ------------------------------------------------
</TABLE>
See accompanying notes to financial statement information
<PAGE>
OMEGA ENVIRONMENTAL, INC.
DEBTOR IN POSESSION CASE #97-06084
COMPARATIVE BALANCE SHEET INFORMATION
<TABLE>
<CAPTION>
(UNAUDITED) (UNAUDITED) (UNAUDITED) (UNAUDITED)
OCTOBER 31, 1999 SEPTEMBER 30, 1999 OCTOBER 31, 1999 SEPTEMBER 30, 1999
CONTINUING CONTINUING DISCONTINUED DISCONTINUED
OPERATIONS OPERATIONS CHANGE OPERATIONS OPERATIONS CHANGE
---------------------------------------------- ---------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
CURRENT ASSETS
Cash 9,575 161,808 (152,233) - - -
Restricted cash held in escrow 2,701,942 2,702,458 (516) 20,861 20,861 -
Accounts receivable
A/R--trade 11,314,549 11,351,633 (37,084) 3,756,148 3,756,148 -
A/R--interco - 1,938 (1,938) - - -
A/R--employees 3,994 3,655 339 -
A/R--supplemental 1,254,455 1,261,071 (6,616) -
A/R--miscellaneous 1,235,673 1,235,673 - - - -
Allowance for doubtful accounts (2,688,613) (2,741,101) 52,488 (2,528,961) (2,528,961) -
---------------------------------------------- ---------------------------------------------
Accounts receivable, net 11,120,058 11,112,869 7,189 1,227,187 1,227,187 -
---------------------------------------------- ---------------------------------------------
Costs and earnings in excess of
billings 5,372,537 4,992,046 380,491 -
Prepaid expenses 265,684 144,183 121,501 - - -
Other current assets - - - - - -
---------------------------------------------- ---------------------------------------------
TOTAL CURRENT ASSETS 19,469,796 19,113,364 356,432 1,248,048 1,248,048 -
---------------------------------------------- ---------------------------------------------
PROPERTY AND EQUIPMENT
Field equipment 2,363,116 2,381,172 (18,056) 1,000 1,000 -
Automotive equipment 954,586 886,849 67,737 - - -
Office furniture and equipment 1,036,359 1,032,709 3,650 - - -
Land, Building, and leasehold
improvements 107,729 107,729 - - - -
---------------------------------------------- ---------------------------------------------
TOTAL PROPERTY & EQUIP., AT COST 4,461,790 4,408,459 53,331 1,000 1,000 -
Accum. Depreciation (3,481,481) (3,480,340) (1,141) - - -
---------------------------------------------- ---------------------------------------------
TOTAL PROPERTY & EQUIP., NET 980,309 928,120 52,190 1,000 1,000 -
---------------------------------------------- ---------------------------------------------
Long-term accounts receivable -
Other (Texas) - - - - - -
Reserve for Long-term accounts
receivable - - - -
---------------------------------------------- ---------------------------------------------
Long-term accounts receivable -
Other (Texas), net - - - - - -
Other Assets 163,395 164,795 (1,400) - - -
Investment & Intercompany in
Subsidiaires 74,375,431 74,375,431 - -
---------------------------------------------- ---------------------------------------------
TOTAL ASSETS 94,988,931 94,581,709 407,222 1,249,048 1,249,048 -
---------------------------------------------- ---------------------------------------------
---------------------------------------------- ---------------------------------------------
POST PETITION CURRENT LIABILITIES
Accounts payable 1,222,998 808,913 414,085 - - -
Line of Credit 24,293,707 24,031,090 262,617 -
Accrued expenses, excluding
bankruptcy costs 800,534 823,710 (23,176) 69,976 69,976 -
Accrued bankruptcy costs 1,780,346 1,655,346 125,000 - - -
Estimated claims against cash held
in escrow 2,503,751 2,504,267 (516) 20,807 20,807 -
Intercompany - BNYFC (10,291,078) (10,292,141) 1,063 10,291,078 10,292,141 (1,063)
Intercompany payable - 1,938 (1,938) -
---------------------------------------------- ---------------------------------------------
TOTAL POST PETITION CURRENT
LIABILITIES 20,310,258 19,533,123 777,135 10,381,861 10,382,924 (1,063)
Intercompany Notes Payable 7,926,358 7,926,358 - 4,320,625 4,320,625 -
Pre Petition Liabilities 4,107,442 4,045,485 61,957 11,809,110 11,809,110 -
Pre Petition Estimated Construction
Claims - - - 1,800,000 1,800,000 -
---------------------------------------------- ---------------------------------------------
TOTAL LIABILITIES 32,344,058 31,504,966 839,092 28,311,596 28,312,659 (1,063)
---------------------------------------------- ---------------------------------------------
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 (904,029) (904,029) - (941,907) (941,907) -
Y-T-D net income post petition (19,452,986) (19,021,116) (431,870) (17,265,765) (17,266,828) 1,063
---------------------------------------------- ---------------------------------------------
TOTAL SHAREHOLDERS' EQUITY 62,644,873 63,076,743 (431,870) (27,062,548) (27,063,611) 1,063
---------------------------------------------- ---------------------------------------------
TOTAL LIABILITIES & SHAREHOLDERS'
EQUITY 94,988,931 94,581,709 407,222 1,249,048 1,249,048 -
---------------------------------------------- ---------------------------------------------
---------------------------------------------- ---------------------------------------------
</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)
OCTOBER 31, 1999 SEPTEMBER 30, 1999
COMBINED COMBINED
FINAL FINAL CHANGE
-----------------------------------------------------------------
<S> <C> <C> <C>
CURRENT ASSETS
Cash 9,575 161,808 (152,233)
Restricted cash held in escrow 2,722,803 2,723,319 (516)
Accounts receivable
A/R--trade 15,070,697 15,107,781 (37,084)
A/R--interco - (0) 0
A/R--employees 3,994 3,655 339
A/R--supplemental 1,254,455 1,261,071 (6,616)
A/R--miscellaneous 1,235,673 1,235,673 -
Allowance for doubtful accounts (5,217,574) (5,270,062) 52,488
-----------------------------------------------------------------
Accounts receivable, net 12,347,245 12,338,118 9,127
-----------------------------------------------------------------
Costs and earnings in excess of billings 5,372,537 4,992,046 380,491
Prepaid expenses 265,684 144,183 121,501
Other current assets - - -
-----------------------------------------------------------------
TOTAL CURRENT ASSETS 20,717,844 20,359,474 358,370
-----------------------------------------------------------------
PROPERTY AND EQUIPMENT
Field equipment 2,364,116 2,382,172 (18,056)
Automotive equipment 954,586 886,849 67,737
Office furniture and equipment 1,036,359 1,032,709 3,650
Land, Building, and leasehold improvements 107,729 107,729 -
-----------------------------------------------------------------
TOTAL PROPERTY & EQUIP., AT COST 4,462,790 4,409,459 53,331
Accum. Depreciation (3,481,481) (3,480,339) (1,142)
-----------------------------------------------------------------
TOTAL PROPERTY & EQUIP., NET 981,309 929,120 52,189
-----------------------------------------------------------------
Long-term accounts receivable - Other (Texas) - - -
Reserve for Long-term accounts receivable - - -
-----------------------------------------------------------------
Long-term accounts receivable - Other (Texas), net - - -
Other Assets 163,395 164,795 (1,400)
Investment & Intercompany in Subsidiaires 0 - 0
-----------------------------------------------------------------
TOTAL ASSETS 21,862,548 21,453,389 409,160
-----------------------------------------------------------------
-----------------------------------------------------------------
POST PETITION CURRENT LIABILITIES
Accounts payable 1,222,998 808,913 414,085
Line of Credit 24,293,707 24,031,090 262,617
Accrued expenses, excluding bankruptcy costs 870,510 893,686 (23,176)
Accrued bankruptcy costs 1,780,346 1,655,346 125,000
Estimated claims against cash held in escrow 2,524,558 2,525,074 (516)
Intercompany - BNYFC - - -
Intercompany payable - - -
-----------------------------------------------------------------
TOTAL POST PETITION CURRENT LIABILITIES 30,692,119 29,914,109 778,010
Intercompany Notes Payable - - -
Pre Petition Liabilities 15,916,552 15,854,595 61,957
Pre Petition Estimated Construction Claims 1,800,000 1,800,000 -
-----------------------------------------------------------------
TOTAL LIABILITIES 48,408,671 47,568,704 839,967
-----------------------------------------------------------------
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 (1,845,936) (1,845,936) -
Y-T-D net income post petition (36,718,751) (36,287,944) (430,807)
-----------------------------------------------------------------
TOTAL SHAREHOLDERS' EQUITY (26,546,123) (26,115,316) (430,807)
-----------------------------------------------------------------
TOTAL LIABILITIES & SHAREHOLDERS' EQUITY 21,862,548 21,453,388 409,160
-----------------------------------------------------------------
-----------------------------------------------------------------
</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
OCTOBER 31, 1999 SEPTEMBER 30, 1999 OCTOBER 31, 1999 SEPTEMBER 30, 1999
ESD ESD CHANGE CORPORATE CORPORATE CHANGE
----------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
Sales 1,725,159 1,731,448 (6,289) - - -
Cost of Sales 1,341,891 1,278,014 63,877 - - -
----------------------------------------------------------------------------------------------
Gross Profit 383,268 453,434 (70,166) - - -
Selling, General, and
Administrative 356,652 450,194 (93,542) 74,781 81,773 (6,992)
----------------------------------------------------------------------------------------------
Income (Loss) From Operations 26,616 3,240 23,376 (74,781) (81,773) 6,992
Other Income(Expense):
I/C Interest Income (Expense) (66,923) (63,955) (2,968) 66,923 63,955 2,968
Interest Expense - - - (222,148) (212,550) (9,598)
Interest Income - - - -
Gain (loss) on Asset Disposition 17,182 1,288 15,894 - - -
Other Expense 21 - 21 (53,760) - (53,760)
----------------------------------------------------------------------------------------------
Total Other (Expense) (49,720) (62,667) 12,947 (208,985) (148,595) (60,390)
Net Income (Loss) Before Bankruptcy
Administrative Expenses (23,104) (59,427) 36,323 (283,766) (230,368) (53,398)
Bankruptcy Administrative Expenses (125,000) (384,257) 259,257
----------------------------------------------------------------------------------------------
Net Income (Loss) (23,104) (59,427) 36,323 (408,766) (614,625) 205,859
----------------------------------------------------------------------------------------------
----------------------------------------------------------------------------------------------
</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
OCTOBER 31, 1999 SEPTEMBER 30, 1999 OCTOBER 31, 1999 SEPTEMBER 30, 1999
CONTINUING CONTINUING DISCONTINUED DISCONTINUED
OPERATIONS OPERATIONS CHANGE OPERATIONS OPERATIONS CHANGE
-------------------------------------------- --------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
Sales 1,725,159 1,731,448 (6,289) 0 0 0
Cost of Sales 1,341,891 1,278,014 63,877 0 0 0
-------------------------------------------- --------------------------------------------------
Gross Profit 383,268 453,434 (70,166) 0 0 0
Selling, General, and Administrative 431,433 531,967 (100,534) 0 0 0
-------------------------------------------- --------------------------------------------------
Income (Loss) From Operations (48,165) (78,533) 30,368 0 0 0
Other Income(Expense):
I/C Interest Income (Expense) 0 0 0 0 0 0
Interest Expense (222,148) (212,550) (9,598) 0 0 0
Interest Income 0 0 0 0
Gain (loss) on Asset Disposition 17,182 1,288 15,894 - 0 0
Other Expense (53,739) 0 (53,739) 1,063 415,952 (414,889)
-------------------------------------------- --------------------------------------------------
Total Other (Expense) (258,705) (211,262) (47,443) 1,063 415,952 (414,889)
Net Income (Loss) Before Bankruptcy
Administrative Expenses (306,870) (289,795) (17,075) 1,063 415,952 (414,889)
Bankruptcy Administrative Expenses (125,000) (384,257) 259,257 0 0 0
Net Income (Loss) (431,870) (674,052) 242,182 1,063 415,952 (414,889)
-------------------------------------------- --------------------------------------------------
-------------------------------------------- --------------------------------------------------
</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
OCTOBER 31, 1999 SEPTEMBER 30, 1999
COMBINED COMBINED
FINAL FINAL CHANGE
------------------------------------------------------------
<S> <C> <C> <C>
Sales 1,725,159 1,731,448 (6,289)
Cost of Sales 1,341,891 1,278,014 63,877
------------------------------------------------------------
Gross Profit 383,268 453,434 (70,166)
Selling, General, and Administrative 431,433 531,967 (100,534)
------------------------------------------------------------
Income (Loss) From Operations (48,165) (78,533) 30,368
Other Income(Expense):
I/C Interest Income (Expense) 0 0 0
Interest Expense (222,148) (212,550) (9,598)
Interest Income 0 0 0
Gain (loss) on Asset Disposition 17,182 1,288 15,894
Other Expense (52,676) 415,952 (468,628)
------------------------------------------------------------
Total Other (Expense) (257,642) 204,690 (462,332)
Net Income (Loss) Before Bankruptcy
Administrative Expenses (305,807) 126,157 (431,964)
Bankruptcy Administrative Expenses (125,000) (384,257) 259,257
------------------------------------------------------------
Net Income (Loss) (430,807) (258,100) (172,707)
------------------------------------------------------------
------------------------------------------------------------
</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
OCTOBER 31, 1999 SEPTEMBER 30, 1999 CHANGE
------------------ -------------------- ---------
<S> <C> <C> <C>
Cash flows from operating activities:
Net loss ($430,807) ($258,100) ($172,707)
Adjustments to reconcile net loss to net cash (used in) provided by operating
activities:
Depreciation 48,046 46,120 1,926
Change in estimate of pre-petition construction claims 0 (406,789) 406,789
Write off of accounts payable in discontinued operations (17,182) 1,288 (18,470)
(Gain) / Loss on sale of property and equipment
Change in certain assets & liabilities:
(Increase) decrease in: (9,127) (356,799) 347,672
Receivables, net (380,491) (279,470) (101,021)
Costs in excess of billings (121,501) 65,102 (186,603)
Prepaids & other assets
Increase (decrease) in: 414,085 208,164 205,921
Accounts payable 101,824 511,156 (409,332)
Accrued expenses 0 0 0
Other net changes in assets and liabilities 37,054 (211,047) 248,101
------------------ -------------------- ---------
Total adjustments (393,753) (469,147) 75,394
------------------ -------------------- ---------
Net cash provided by (used in) operating activities
Cash flows from investing activities : 25,000 1,500 23,500
Proceeds from sale of equipment (108,054) (30,580) (77,474)
Additions to property and equipment (83,054) (29,080) (53,974)
------------------ -------------------- ---------
Net cash provided by (used in) investing activities
Cash flows from financing and other activities:
Net proceeds (repayments) from revolver credit loan 262,617 458,754 (196,137)
Proceeds from pre-petition preference payment receipts 61,957 44,643 17,314
(Reduction) Increase of pre-petition liabilities 0 47,000 (47,000)
------------------ -------------------- ---------
Net cash provided by (used in) financing activities 324,574 550,397 (225,823)
------------------ -------------------- ---------
Net increase (decrease) in cash (152,233) 52,170 (204,403)
CASH AT BEGINNING OF PERIOD 161,808 109,638 52,170
------------------ -------------------- ---------
CASH AT END OF PERIOD $9,575 $161,808 ($152,233)
------------------ -------------------- ---------
------------------ -------------------- ---------
</TABLE>
See accompanying notes to financial statement information
<PAGE>
EXHIBIT 99.1
Omega Environmental, Inc.
Debtor in Possession Case # 97-06084
October 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 October 31, 1999, the Company's borrowings from BNY Financial Corporation
("BNYFC") were $24,293,707.
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.
In September 1999, certain amounts receivable and payables in the STC division
were written off which resulted in $400,000 of other income recorded in the
discontinued operation's section. A $47,000 receivable in the STC division was
collected in December 1999.
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 October was
$500,580.
