<PAGE>
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 10-Q
(Mark One)
[X] Quarterly Report Pursuant to Section 13 or 15 (d) of the Securities
Exchange Act of 1934
For the period ended September 30, 1995
[ ] Transition Report Pursuant to Section 13 or 15 (d) of the Securities
Exchange Act of 1934
For the transition period from _____________ to _____________
Commission File Number: 0-4036
Kreisler Manufacturing Corporation
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(Exact name of registrant as specified in its charter)
Delaware 22-1044792
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(State of other jurisdiction of (I.R.S. employer
incorporation or organization) Identification No.)
5960 Central Avenue, Suite H., St. Petersburg, Florida 33707
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(Address of principal executive offices)
(813) 347-1144
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(Registrant's telephone number, including area code)
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(Former name, former address and former fiscal year, if changed since
last report)
Indicate by check mark whether the registrant (1) has filed all reports
required to be filed by Section 13 or 15 (d) of the Securities Exchange Act of
1934 during the preceding 12 months (or for such shorter period that the
registrant was required to file such reports), and (2) has been subject to
such filing requirements for the past 90 days.
[X] Yes [ ] No
Number of shares of Common Stock outstanding as of September 30, 1995 was
485,512 shares.
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Kreisler Manufacturing Corporation and Subsidiaries
CONSOLIDATED BALANCE SHEETS
<TABLE>
<CAPTION>
(Unaudited) (Audited)
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First Quarter Ended Year Ended
9/30/95 6/30/95
------------------- ----------
<S> <C> <C>
Assets
Cash and cash equivalents $ 745,034 $ 607,954
Certificates of deposit - current 606,991 306,990
Accounts receivable - trade 1,132,745 1,014,362
Inventories
Raw Materials 782,781 782,781
Work in process 325,157 325,157
Finished goods 60,900 60,900
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1,168,838 1,168,838
Other current assets 25,639 38,034
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Total current assets 3,679,247 3,136,178
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Certificates of deposit 497,591 797,592
Available-for-sale securities -- 577,989
Property, plant & equip., at cost, less accum.deprec. 210,500 225,393
---------- ----------
$4,387,338 $4,737,152
Liabilities and Stockholders' Equity
Accounts payable - trade $ 70,410 $ 143,818
Accrued expenses 85,898 165,846
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Total current liabilities 156,308 309,664
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Stockholders' Equity
Common Stock, $.50 par value - 3,000,000 shares authorized
485,512 & 823,451 shares issued 9/30/95 & 6/30/95
respectively and 485,512 shares outstanding. 242,756 411,726
Additional paid-in capital 1,571,703 2,667,377
Retained earnings 2,408,303 5,021,979
Unrealized holding gains on available-for-sale securities 8,268 3,088
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4,231,030 8,104,170
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Less - 337,939 shares of common stock in
treasury, at cost -- (3,676,682)
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Total Stockholders' Equity 4,231,030 4,427,488
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$4,387,338 $4,737,152
---------- ----------
</TABLE>
<PAGE>
Kreisler Manufacturing Corporation and Subsidiaries
CONSOLIDATED STATEMENTS OF EARNINGS
(Unaudited)
Three Months Ended September 30 1995 1994
- ---------------------------------------------------------------
Sales $1,221,784 $1,408,431
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Cost of goods sold 1,368,182 1,258,817
General and administrative expenses 64,908 77,972
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1,433,090 1,336,789
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Earnings (loss) from operations (211,306) 71,642
Other income:
Interest and other earnings 9,667 26,532
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Earnings (loss) before taxes (201,639) 98,174
Income tax expense -- --
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Net earnings (loss) $ (201,639) $ 98,174
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Earnings per share:
Net earnings (loss) $ (.42) $ .20
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Kreisler Manufacturing Corporation and Subsidiaries
CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited)
Three Months Ended September 30 1995 1994
- -------------------------------------------------------------------------------
Cash flows from operating activities:
Net Earnings (loss) $(201,639) $ 98,174
Adjustments to reconcile net loss to cash (used)
provided by operating activities:
Depreciation and amortization 14,894 17,921
Unrealized loss on investments -- --
Gain on sale of assets -- --
(Increase) in accounts receivable - trade (118,383) (509,397)
Decrease in inventories -- 35,041
Decrease in other current assets 12,394 5,122
(Decrease) in accounts payable - trade (73,408) (72,740)
(Decrease) in accrued expenses (79,949) (116,916)
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Net adjustments (244,452) (640,969)
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Net cash (used) provided by operations (446,091) (542,795)
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Cash flows from investing activities:
Purchase of investments -- --
Proceeds from sale of investments 574,029 --
Purchase of property and equipment -- (9,063)
Proceeds from sale of equipment -- --
Loss on sale of investments 9,140 --
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Net cash used in investing activities 583,169 (9,063)
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Net increase (decrease) in cash and cash equivalents 137,078 (551,858)
Cash and cash equivalents at beginning of year 607,955 1,772,507
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Cash and cash equivalents at September 30 $ 745,033 $1,220,649
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<PAGE>
Kreisler Manufacturing Corporation and Subsidiaries
MANAGEMENT'S DISCUSSION AND ANALYSIS
Net sales decreased in the first quarter of fiscal year 1996 $186,647 or
13% compared to the first quarter of fiscal year 1995. The decline reflects the
ending of a major government contract and a general decline in government
orders. A positive note for the first quarter is that as of September 30, 1995
the total backlog with a negligible overdue has increased 92% compared to
September 30, 1994. The impressive part of this increase is that government
orders were 46% of our backlog September 30, 1994 and today represents 9% of our
backlog. Other customers both old and new have contributed to this
improvement. It is the first time in over two years that orders did not fall
off the cliff after four months. We are encouraged by this development.
Gross margins are 12% negative for the quarter with insufficient sales to
off-set overhead expenses. Overhead expenses will remain at a high level until
the third and fourth quarter of this fiscal year when shipments will increase.
The second quarter will continue to be weak but bringing forward production into
the second quarter will give on time delivery in the third and fourth quarter
while maintaining a level work force. A further reduction in force at this time
would impede our ability to deliver and inhibit our opportunities for new
orders. We are a top line driven company with a need to achieve a critical mass
in sales to reach satisfactory profitability. As management of this company it
is our responsibility to our shareholders to make money and to our employees a
secure and satisfying environment now and in the future.
Capital expenditures for the quarter were $30,000 for production
equipment. Expenditure for capital equipment will be on an as need basis where
quick return on investment can be realized.
General and administration expense declined $13,000 or 17% primarily on
timing differences in audit expenditure.
Other income declined with a lower investment portfolio caused by negative
cash flow. Short term liquidity management believes will be adequately provided
by cash reserves to meet the needs of the business. While cash, cash
equivalents and investments declined $440,384 or 19% since June 30, 1995 the
Company has a current ratio of 23:1 and working capital of $3,523,000. Our
balance sheet remains strong with high current ratios and no long term debt.
<PAGE>
SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934, the
registrant has duly caused this report to be signed on its behalf by the
undersigned thereunto duly authorized.
KREISLER MANUFACTURING CORPORATION
(Registrant)
By /s/ Edward L. Stern
---------------------
Edward L. Stern
President, Treasurer
October 20, 1995
<TABLE> <S> <C>
<ARTICLE> 5
<MULTIPLIER> 1
<S> <C>
<PERIOD-TYPE> 3-MOS
<FISCAL-YEAR-END> JUN-30-1996
<PERIOD-START> JUL-01-1995
<PERIOD-END> SEP-30-1995
<CASH> 1,352,025
<SECURITIES> 497,591
<RECEIVABLES> 1,141,345
<ALLOWANCES> (8,600)
<INVENTORY> 1,168,838
<CURRENT-ASSETS> 25,639
<PP&E> 2,843,554
<DEPRECIATION> (2,633,052)
<TOTAL-ASSETS> 4,387,338
<CURRENT-LIABILITIES> 156,308
<BONDS> 0
0
0
<COMMON> 242,756
<OTHER-SE> 3,988,274
<TOTAL-LIABILITY-AND-EQUITY> 4,387,338
<SALES> 1,221,784
<TOTAL-REVENUES> 1,221,784
<CGS> 1,368,182
<TOTAL-COSTS> 1,368,182
<OTHER-EXPENSES> 64,908
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 9,667
<INCOME-PRETAX> 0
<INCOME-TAX> 0
<INCOME-CONTINUING> (211,306)
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> (201,639)
<EPS-PRIMARY> (.42)
<EPS-DILUTED> (.42)
</TABLE>
