CHEM MET SERVICES COMBINED ENTITIES UNAUDITED COMBINED BALANCE SHEET March 31, 1999 (Amounts In Thousands) March 31, Sept. 30, 1999 1998 ____________________________________________________________________________ ASSETS Current Assets: Cash and cash equivalents $184 $334 Restricted Cash equivalents and investments 471 495 Accounts Receivable, net of allowance for doubtful accounts 4,937 5,043 Inventories Prepaid Expenses 28 28 Other Receivables 20 26 _____ _____ Total Current Assets 5,640 5,926 _____ _____ Property and equipment, Net of accumulated depreciation 6,508 6,636 _____ _____ Intangibles and other assets: Permits, net of accumulated amortization Note Receivable - Officer 1,065 1,065 Goodwill, net of accumulated amortization 30 30 Other assets 1 6 ______ ______ Total other assets 1,096 1,101 ______ ______ Total Assets $13,244 $13,663 ====== ====== CHEM MET SERVICES COMBINED ENTITIES UNAUDITED COMBINED BALANCE SHEET March 31, 1999 (Amounts In Thousands) March 31, Sept. 30, 1999 1998 ____________________________________________________________________________ LIABILITIES AND STOCKHOLDER'S EQUITY Current liabilities: Accounts Payable $1,515 $1,638 Accounts Payable-Intercompany 0 0 Accrued Expenses 1,203 1,078 Current portion of settlements payable 1,044 1,044 Current portion of long-term debt 2,355 2,482 ______ _____ Total current liability 6,117 6,242 ______ _____ Long-term Liabilities: Environmental accruals 4,430 4,430 Accrued closure costs 450 450 Long-term debt, less current portion 1,425 1,554 Long-term portion of settlements payable 192 264 ______ _____ Total long-term liabilities 6,497 6,698 ______ _____ Stockholder's Equity Preferred Stock Common Stock 77 77 Redeemable warrants Additional paid-in capital Accumulated Deficit 553 646 ______ ______ Total stockholder's equity 630 723 ______ ______ Total liabilities and stockholder's equity $13,244 $13,663 ====== ====== CHEM MET SERVICES COMBINED ENTITIES CONSOLIDATED STATEMENTS OF OPERATIONS Three Months Ended Six Months Ended March 31 March 31 (Amounts in Thousands, __________________ __________________ Except for Share Amounts) 1999 1998 1999 1998 _____________________________________________________________________________ Net Revenues $5,079 $5,503 $10,966 $10,755 Cost of Goods Sold 3,607 3,359 7,124 6,501 ______ ______ ______ ______ Gross Profit 1,472 2,144 3,842 4,254 Selling, General and Administration 1,756 1,653 3,481 3,124 Depreciation and Amortization 138 150 288 285 ______ ______ ______ ______ Income (Loss) from Operations (422) 341 73 845 Other Income (Expense): Interest Income 50 (6) 54 21 Interest Expense (63) (86) (167) (163) Other (21) 0 (4) 0 ______ ______ ______ ______ Net Income (456) 249 (44) 703 ====== ====== ====== ====== CHEM MET SERVICES COMBINED ENTITIES STATEMENT OF CASH FLOWS Six Months Ended March 31, (Amounts in Thousands, _________________ Except for Share Amounts) 1999 1998 _____________________________________________________________________________ Cash flows from operating activities: Net income (loss) from continuing operations (44) 703 Adjustments to reconcile net income (loss) to cash provided by continuing operations: Depreciation and amortization 288 285 Provision for bad debt and other re -- -- Gain on sale of plant, property and -- -- Changes in assets and liabilities Accounts receivable 106 (1,084) Prepaid expenses, inventories and o 6 30 Accounts payable and accrued expenses 2 (487) ____ ____ Net cash provided by continuing operations 358 (553) ____ ____ Cash flows from investing activities: Purchases of property and equipment, net (160) -- Proceeds from sale of property and equipment -- -- Change in restricted cash, net (24) (63) ____ ____ Net cash used in investing activities (184) (63) ____ ____ Cash flow as from financing activities: Long-term financing new equipment 160 -- Principal repayments on long-term debt (3) -- Proceeds from issuance of stock -- -- ____ ____ Net cash used in financing activities 157 0 ____ ____ Increase (Decrease) in cash 331 (616) Cash Beginning 334 600 ____ ____ Cash Ending $665 ($16) ==== ====