<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) MARCH 27, 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 (I.R.S. EMPLOYER IDENTIFICATION NO.)
OF 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 March 27, 2000, the Registrant filed unaudited financial
statement information as of and for each of the months ended
January 31, 2000 and December 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 January 31, 2000 and
December 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: March 27, 2000 /s/ Donald E. Condit
------------------------------------------
Donald E. Condit,
Chief Financial Officer
<PAGE>
OMEGA ENVIRONMENTAL, INC. EXHIBIT 99.1
DEBTOR IN POSSESSION CASE #97-06084
COMPARATIVE BALANCE SHEET INFORMATION
<TABLE>
<CAPTION>
(UNAUDITED) (UNAUDITED) (UNAUDITED) (UNAUDITED)
JANUARY 31, DECEMBER 31, JANUARY 31, DECEMBER 31,
2000 1999 2000 1999
ESD ESD CHANGE CORPORATE CORPORATE CHANGE
---------------------------------------- ---------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
CURRENT ASSETS
Cash 38,230 51,656 (13,426) 519,668 547,478 (27,810)
Restricted cash held in escrow -- 2,705,937 (2,705,937) --
Accounts receivable
A/R--trade 9,802,314 9,381,451 420,863 -- -- --
A/R--employees (1,375) 21,630 (23,005) -- -- --
A/R--supplemental -- 1,242,986 (1,242,986) --
A/R--miscellaneous -- 10,078 (10,078) 1,224,094 1,224,094 --
Allowance for doubtful accounts (507,847) (1,513,162) 1,005,315 (1,076,094) (1,076,094) --
---------------------------------------- ---------------------------------------------
Accounts receivable, net 9,293,092 9,142,983 150,109 148,000 148,000 --
---------------------------------------- ---------------------------------------------
Costs and earnings in excess of
billings 5,784,820 5,599,103 185,717 --
Prepaid expenses 105,671 148,104 (42,433) 27,554 83,644 (56,090)
Other current assets -- --
---------------------------------------- ---------------------------------------------
TOTAL CURRENT ASSETS 15,221,813 17,647,783 (2,425,970) 695,222 779,122 (83,900)
---------------------------------------- ---------------------------------------------
PROPERTY AND EQUIPMENT
Field equipment 2,209,331 2,217,994 (8,663) -- -- --
Automotive equipment 921,724 921,724 -- -- -- --
Office furniture and equipment 1,005,929 1,004,179 1,750 27,206 27,206 --
Land, Building, and leasehold
improvements 107,729 107,729 -- -- -- --
---------------------------------------- ---------------------------------------------
TOTAL PROPERTY & EQUIP., AT COST 4,244,713 4,251,626 (6,913) 27,206 27,206 --
Accum. Depreciation (3,352,270) (3,319,787) (32,483) (27,206) (27,206) --
---------------------------------------- ---------------------------------------------
TOTAL PROPERTY & EQUIP., NET 892,443 931,839 (39,396) -- -- --
---------------------------------------- ---------------------------------------------
Other Assets 89,641 92,936 (3,295) 41,622 41,622 --
Investment & Intercompany in
Subsidiaries -- 74,375,431 74,375,431 --
---------------------------------------- ---------------------------------------------
TOTAL ASSETS 16,203,897 18,672,558 (2,468,661) 75,112,275 75,196,175 (83,900)
======================================== =============================================
POST PETITION CURRENT LIABILITIES
Accounts payable 974,217 1,670,348 (696,131) 29,161 38,084 (8,923)
Accounts payable - remediation
systems 655,399 -- 655,399 -- --
Line of Credit with GMAC -- 25,537,255 24,789,303 747,952
Transfer of Pre-petition preference -- (796,263) (686,635) (109,628)
collections from vendors ---------------------------------------- ---------------------------------------------
Line of Credit with GMAC, net of -- -- -- 24,740,992 24,102,668 638,324
pre-petition preferences
Accrued expenses, excluding
bankruptcy costs 577,161 510,710 66,451 8,308 8,307 1
Accrued bankruptcy costs -- 1,279,098 1,154,098 125,000
Intercompany - GMAC 6,399,960 5,807,269 592,691 (16,475,398) (15,882,179) (593,219)
---------------------------------------- ---------------------------------------------
TOTAL POST PETITION CURRENT LIABILITIES 8,606,737 10,496,073 (1,889,336) 9,582,161 9,420,978 161,183
Intercompany Notes Payable 7,435,857 7,926,358 (490,501) --
Pre Petition Preference collections
from vendors -- -- -- 796,263 686,635 109,628
Pre Petition Liabilities -- -- -- 3,606,863 3,606,863 --
Pre Petition Estimated Construction
Claims -- -- -- --
---------------------------------------- ---------------------------------------------
TOTAL LIABILITIES 16,042,594 18,422,431 (2,379,837) 13,985,287 13,714,476 270,811
---------------------------------------- ---------------------------------------------
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 (5,359,502) (5,270,678) (88,824) (13,945,629) (13,590,918) (354,711)
---------------------------------------- ---------------------------------------------
TOTAL SHAREHOLDERS' EQUITY 161,303 250,127 (88,824) 61,126,988 61,481,699 (354,711)
---------------------------------------- ---------------------------------------------
TOTAL LIABILITIES & SHAREHOLDERS' EQUITY 16,203,897 18,672,558 (2,468,661) 75,112,275 75,196,175 (83,900)
======================================== =============================================
</TABLE>
See accompanying notes to financial statement information
<PAGE>
OMEGA ENVIRONMENTAL, INC. EXHIBIT 99.1
DEBTOR IN POSSESSION CASE #97-06084
COMPARATIVE BALANCE SHEET INFORMATION
<TABLE>
<CAPTION>
(UNAUDITED) (UNAUDITED) (UNAUDITED) (UNAUDITED)
JANUARY 31, DECEMBER 31, JANUARY 31, DECEMBER 31,
2000 1999 2000 1999
CONTINUING CONTINUING DISCONTINUED DISCONTINUED
OPERATIONS OPERATIONS CHANGE OPERATIONS OPERATIONS CHANGE
---------------------------------------- ---------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
CURRENT ASSETS
Cash 557,898 599,134 (41,236) -- -- --
Restricted cash held in escrow -- 2,705,937 (2,705,937) 2,726,798 20,861 2,705,937
Accounts receivable
A/R--trade 9,802,314 9,381,451 420,863 3,240,282 3,240,282 --
A/R--employees (1,375) 21,630 (23,005) --
A/R--supplemental -- 1,242,986 (1,242,986) --
A/R--miscellaneous 1,224,094 1,234,172 (10,078) 1,253,064 -- 1,253,064
Allowance for doubtful accounts (1,583,941) (2,589,256) 1,005,315 (3,411,768) (2,451,014) (960,754)
---------------------------------------- ---------------------------------------------
Accounts receivable, net 9,441,092 9,290,983 150,109 1,081,578 789,268 292,310
---------------------------------------- ---------------------------------------------
Costs and earnings in excess of billings 5,784,820 5,599,103 185,717 --
Prepaid expenses 133,225 231,748 (98,523) -- -- --
Other current assets -- -- -- -- -- --
---------------------------------------- ---------------------------------------------
TOTAL CURRENT ASSETS 15,917,035 18,426,905 (2,509,870) 3,808,376 810,129 2,998,247
---------------------------------------- ---------------------------------------------
PROPERTY AND EQUIPMENT
Field equipment 2,209,331 2,217,994 (8,663) 1,000 1,000 --
Automotive equipment 921,724 921,724 -- -- -- --
Office furniture and equipment 1,033,135 1,031,385 1,750 -- -- --
Land, Building, and leasehold
improvements 107,729 107,729 -- -- -- --
---------------------------------------- ---------------------------------------------
TOTAL PROPERTY & EQUIP., AT COST 4,271,919 4,278,832 (6,913) 1,000 1,000 --
Accum. Depreciation (3,379,476) (3,346,993) (32,483) -- -- --
---------------------------------------- ---------------------------------------------
TOTAL PROPERTY & EQUIP., NET 892,443 931,839 (39,396) 1,000 1,000 --
---------------------------------------- ---------------------------------------------
Other Assets 131,263 134,558 (3,295) -- -- --
Investment & Intercompany in
Subsidiaries 74,375,431 74,375,431 -- --
---------------------------------------- ---------------------------------------------
TOTAL ASSETS 91,316,172 93,868,733 (2,552,561) 3,809,376 811,129 2,998,247
======================================== =============================================
POST PETITION CURRENT LIABILITIES
Accounts payable 1,003,378 1,708,432 (705,054) -- -- --
Accounts payable - remediation systems 655,399 655,399 -- -- --
Line of Credit with GMAC 25,537,255 24,789,303 747,952 --
Transfer of Pre-petition preference
collections from vendors (796,263) (686,635) (109,628) --
---------------------------------------- ---------------------------------------------
Line of Credit with GMAC, net of
pre-petition preferences 24,740,992 24,102,668 638,324 -- -- --
Accrued expenses, excluding bankruptcy
costs 585,469 519,017 66,452 69,976 69,976 --
Accrued bankruptcy costs 1,279,098 1,154,098 125,000 -- -- --
Intercompany - GMAC (10,075,438) (10,074,910) (528) 10,075,438 10,074,910 528
---------------------------------------- ---------------------------------------------
TOTAL POST PETITION CURRENT LIABILITIES 18,188,898 19,917,051 (1,728,153) 12,673,967 10,165,693 2,508,274
Intercompany Notes Payable 7,435,857 7,926,358 (490,501) 4,811,126 4,320,625 490,501
Pre Petition Preference collections
from vendors 796,263 686,635 109,628 --
Pre Petition Liabilities 3,606,863 3,606,863 -- 11,809,110 11,809,110 --
Pre Petition Estimated Construction
Claims -- -- -- 1,800,000 1,800,000 --
---------------------------------------- ---------------------------------------------
TOTAL LIABILITIES 30,027,881 32,136,907 (2,109,026) 31,094,203 28,095,428 2,998,775
---------------------------------------- ---------------------------------------------
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) -- 499,770 499,770 --
Y-T-D net income post petition (19,305,131) (18,861,596) (443,535) (18,929,721) (18,929,193) (528)
---------------------------------------- ---------------------------------------------
TOTAL SHAREHOLDERS' EQUITY 61,288,291 61,731,826 (443,535) (27,284,827) (27,284,299) (528)
---------------------------------------- ---------------------------------------------
TOTAL LIABILITIES & SHAREHOLDERS' EQUITY 91,316,172 93,868,733 (2,552,561) 3,809,376 811,129 2,998,247
======================================== =============================================
</TABLE>
See accompanying notes to financial statement information
<PAGE>
OMEGA ENVIRONMENTAL, INC. EXHIBIT 99.1
DEBTOR IN POSSESSION CASE #97-06084
COMPARATIVE BALANCE SHEET INFORMATION
<TABLE>
<CAPTION>
(UNAUDITED) (UNAUDITED)
JANUARY 31, DECEMBER 31,
2000 1999
COMBINED COMBINED
FINAL FINAL CHANGE
----------------------------------------
<S> <C> <C> <C>
CURRENT ASSETS
Cash 557,898 599,134 (41,236)
Restricted cash held in escrow 2,726,798 2,726,798 --
Accounts receivable
A/R--trade 13,042,596 12,621,733 420,863
A/R--employees (1,375) 21,630 (23,005)
A/R--supplemental -- 1,242,986 (1,242,986)
A/R--miscellaneous 2,477,158 1,234,172 1,242,986
Allowance for doubtful accounts (4,995,709) (5,040,270) 44,561
----------------------------------------
Accounts receivable, net 10,522,670 10,080,251 442,419
----------------------------------------
Costs and earnings in excess of billings 5,784,820 5,599,103 185,717
Prepaid expenses 133,225 231,748 (98,523)
Other current assets -- -- --
----------------------------------------
TOTAL CURRENT ASSETS 19,725,411 19,237,034 488,377
----------------------------------------
PROPERTY AND EQUIPMENT
Field equipment 2,210,331 2,218,994 (8,663)
Automotive equipment 921,724 921,724 --
Office furniture and equipment 1,033,135 1,031,385 1,750
Land, Building, and leasehold
improvements 107,729 107,729 --
----------------------------------------
TOTAL PROPERTY & EQUIP., AT COST 4,272,919 4,279,832 (6,913)
Accum. Depreciation (3,379,476) (3,346,993) (32,483)
----------------------------------------
TOTAL PROPERTY & EQUIP., NET 893,443 932,839 (39,396)
----------------------------------------
Other Assets 131,263 134,558 (3,295)
----------------------------------------
Investment & Intercompany in Subsidiaries 0 0 --
TOTAL ASSETS 20,750,117 20,304,431 445,686
========================================
POST PETITION CURRENT LIABILITIES
Accounts payable 1,003,378 1,708,432 (705,054)
Accounts payable - remediation systems 655,399 655,399
Line of Credit with GMAC 25,537,255 24,789,303 747,952
Transfer of Pre-petition preference
collections from vendors (796,263) (686,635) (109,628)
----------------------------------------
Line of Credit with GMAC, net of
pre-petition preferences 24,740,992 24,102,668 638,324
Accrued expenses, excluding bankruptcy
costs 655,445 588,993 66,452
Accrued bankruptcy costs 1,279,098 1,154,098 125,000
Intercompany - GMAC -- -- --
----------------------------------------
TOTAL POST PETITION CURRENT LIABILITIES 30,862,865 30,082,744 780,121
Intercompany Notes Payable -- -- --
Pre Petition Preference collections
from vendors 796,263 686,635 109,628
Pre Petition Liabilities 15,415,973 15,415,973 --
Pre Petition Estimated Construction
Claims 1,800,000 1,800,000 --
----------------------------------------
TOTAL LIABILITIES 48,875,101 47,985,352 889,749
----------------------------------------
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 (38,234,852) (37,790,789) (444,063)
----------------------------------------
TOTAL SHAREHOLDERS' EQUITY (28,124,984) (27,680,921) (444,063)
----------------------------------------
TOTAL LIABILITIES & SHAREHOLDERS' EQUITY 20,750,117 20,304,431 445,686
========================================
</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
JANUARY 31, 2000 DECEMBER 31, 1999 JANUARY 31, 2000 DECEMBER 31, 1999
ESD ESD CHANGE CORPORATE CORPORATE CHANGE
----------------------------------------------- ----------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
Sales 1,196,532 1,756,298 (559,766) -- -- --
Cost of Sales 845,169 1,401,229 (556,060) -- -- --
----------------------------------------------- ----------------------------------------------
Gross Profit 351,363 355,069 (3,706) -- -- --
Selling, General, and Administrative 385,472 453,452 (67,980) 55,849 68,829 (12,980)
----------------------------------------------- ----------------------------------------------
Income (Loss) From Operations (34,109) (98,383) 64,274 (55,849) (68,829) 12,980
Other Income (Expense):
I/C Interest Income (Expense) (54,787) (57,881) 3,094 54,787 57,881 (3,094)
Interest Expense (2) (11) 9 (215,561) (211,174) (4,387)
Interest Income -- -- -- --
Gain (loss) on Asset Disposition -- 250 (250) -- -- --
Other Expense 74 -- 74 (2,530) (1,958) (572)
----------------------------------------------- ----------------------------------------------
Total Other (Expense) (54,715) (57,642) 2,927 (163,304) (155,251) (8,053)
Net Income (Loss) Before Bankruptcy
Administrative Expenses (88,824) (156,025) 67,201 (219,153) (224,080) 4,927
Bankruptcy Administrative Expenses (135,558) (128,500) (7,058)
----------------------------------------------- ----------------------------------------------
Net Income (Loss) (88,824) (156,025) 67,201 (354,711) (352,580) (2,131)
----------------------------------------------- ----------------------------------------------
</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
JANUARY 31, 2000 DECEMBER 31, 1999 JANUARY 31, 2000 DECEMBER 31, 1999
CONTINUING CONTINUING DISCONTINUED DISCONTINUED
OPERATIONS OPERATIONS CHANGE OPERATIONS OPERATIONS CHANGE
--------------------------------------------- --------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
Sales 1,196,532 1,756,298 (559,766) 0 0 0
Cost of Sales 845,169 1,401,229 (556,060) 0 0 0
--------------------------------------------- --------------------------------------------
Gross Profit 351,363 355,069 (3,706) 0 0 0
Selling, General, and Administrative 441,321 522,281 (80,960) 0 0 0
--------------------------------------------- --------------------------------------------
Income (Loss) From Operations (89,958) (167,212) 77,254 0 0 0
Other Income (Expense):
I/C Interest Income (Expense) 0 0 0 0 0 0
Interest Expense (215,563) (211,185) (4,378) 0 0 0
Interest Income 0 0 0 0
Gain (loss) on Asset Disposition 0 250 (250) -- 0 0
Other Expense (2,456) (1,958) (498) (528) (211,406) 210,878
--------------------------------------------- --------------------------------------------
Total Other (Expense) (218,019) (212,893) (5,126) (528) (211,406) 210,878
Net Income (Loss) Before Bankruptcy
Administrative Expenses (307,977) (380,105) 72,128 (528) (211,406) 210,878
Bankruptcy Administrative Expenses (135,558) (128,500) (7,058) 0 0 0
--------------------------------------------- --------------------------------------------
Net Income (Loss) (443,535) (508,605) 65,070 (528) (211,406) 210,878
--------------------------------------------- --------------------------------------------
</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
JANUARY 31, 2000 DECEMBER 31, 1999
COMBINED COMBINED
FINAL FINAL CHANGE
-------------------------------------------------
<S> <C> <C> <C>
Sales 1,196,532 1,756,298 (559,766)
Cost of Sales 845,169 1,401,229 (556,060)
-------------------------------------------------
Gross Profit 351,363 355,069 (3,706)
Selling, General, and Administrative 441,321 522,281 (80,960)
-------------------------------------------------
Income (Loss) From Operations (89,958) (167,212) 77,254
Other Income (Expense):
I/C Interest Income (Expense) 0 0 0
Interest Expense (215,563) (211,185) (4,378)
Interest Income 0 0 0
Gain (loss) on Asset Disposition 0 250 (250)
Other Expense (2,984) (213,364) 210,380
-------------------------------------------------
Total Other (Expense) (218,547) (424,299) 205,752
Net Income (Loss) Before Bankruptcy
Administrative Expenses (308,505) (591,511) 283,006
Bankruptcy Administrative Expenses (135,558) (128,500) (7,058)
-------------------------------------------------
Net Income (Loss) (444,063) (720,011) 275,948
-------------------------------------------------
</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
JANUARY 31, 2000 DECEMBER 31, 1999 CHANGE
---------------- ----------------- ------------
<S> <C> <C> <C>
Cash flows from operating activities:
Net loss $(444,063) $(720,011) $ 275,948
Adjustments to reconcile net loss to net cash (used in)
provided by operating activities:
Depreciation 41,146 34,640 6,506
Write off of accounts receivable in discontinued operations 211,406 (211,406)
(Gain) / Loss on sale of property and equipment 0 (250) 250
Change in certain assets & liabilities:
(Increase) decrease in:
Receivables, net (442,419) 1,838,299 (2,280,718)
Receivables - remediation systems, net 0 0 0
Costs in excess of billings (185,717) (490,987) 305,270
Prepaids & other assets 98,523 19,757 78,766
Increase (decrease) in:
Accounts payable (705,054) 491,192 (1,196,246)
Accrued expenses 191,452 (1,034,628) 1,226,080
Billings in excess of costs 0 0 0
Other net changes in assets and liabilities 3,295 (1,164) 4,459
--------- ----------- ------------
Total adjustments (343,375) 1,068,265 (1,411,640)
--------- ----------- ------------
Net cash provided by (used in) operating activities (787,438) 348,254 (1,135,692)
Cash flows from investing activities:
Proceeds from sale of equipment 0 251 (251)
Additions to property and equipment (1,750) 0 (1,750)
--------- ----------- ------------
Net cash provided by (used in) investing activities (1,750) 251 (2,001)
Cash flows from financing and other activities:
Net proceeds (repayments) from revolver credit loan 747,952 307,032 440,920
Proceeds from pre-petition preference payment receipts 109,627 117,170 (7,543)
(Reduction) Increase of pre-petition liabilities (109,627) (686,636) 577,009
--------- ----------- ------------
Net cash provided by (used in) financing activities 747,952 (262,434) 1,010,386
--------- ----------- ------------
Net increase (decrease) in cash (41,236) 86,071 (127,307)
CASH AT BEGINNING OF PERIOD 599,134 513,063 86,071
--------- ----------- ------------
CASH AT END OF PERIOD $ 557,898 $ 599,134 $ (41,236)
========= =========== ============
</TABLE>
See accompanying notes to financial statement information
<PAGE>
EXHIBIT 99.1
Omega Environmental, Inc.
Debtor in Possession Case # 97-06084
January 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 January 31, 2000, the Company's borrowings from GMAC Credit Corporation
("GMAC") were $25,537,255.
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.
Florida Supplemental
In January 2000, the ESD Florida Supplemental balances were transferred to
Discontinued Operations. The amounts of the transaction transferred were:
Restricted Cash Held in Escrow of $2.7 million, net receivables of $300,000 and
Estimated claims against cash held in escrow of $2.5 million.
Pre-Petition Preference Receipts
Beginning in June 1999, Omega began collecting pre-petition preferences. These
are accounted for in the pre-petition liabilities section of the corporate
balance sheet. Collections for the month of January 2000 and total collections
since June 1999 were $109,627, and $796,263, respectively.
