<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 December 31, 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 December 31, 1995 was
485,512 shares.
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Kreisler Manufacturing Corporation and Subsidiaries
CONSOLIDATED BALANCE SHEETS
(Unaudited) (Audited)
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Second Quarter Ended Year Ended
12/31/95 6/30/95
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Assets
Cash and cash equivalents $ 436,823 $ 607,954
Certificates of deposit - current 606,992 306,990
Accounts receivable - trade 515,423 1,014,362
Inventories
Raw Materials 974,078 782,781
Work in process 404,642 325,157
Finished goods 75,779 60,900
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1,454,499 1,168,838
Other current assets 13,865 38,034
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Total current assets 3,027,602 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. 226,412 225,393
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$3,751,605 $4,737,152
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Liabilities and Stockholders' Equity
Accounts payable - trade $ 112,353 $ 143,818
Accrued expenses 134,716 165,846
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Total current liabilities 247,069 309,664
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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 1,571,702 2,667,377
Retained earnings 1,681,810 5,021,979
Unrealized holding gains on
available-for-sale securities 8,268 3,088
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3,504,536 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 3,504,536 4,427,488
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$3,751,605 $4,737,152
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Kreisler Manufacturing Corporation and Subsidiaries
CONSOLIDATED STATEMENTS OF EARNINGS
(Unaudited)
Three Months Ended December 31 1995 1994
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Sales $ 824,737 $ 1,356,817
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Cost of goods sold 1,475,651 1,428,479
General and administrative expenses 91,611 75,910
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1,567,262 1,504,389
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Earnings (loss) from operations (742,525) (147,572)
Other income:
Interest and other earnings 16,031 68,922
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Earnings (loss) before taxes (726,494) (78,650)
Income tax expense -- --
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Net earnings (loss) $ (726,494) $ (78,650)
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Earnings per share:
Net earnings (loss) $ (1.49) $ (.16)
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Six Months Ended December 31 1995 1994
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Sales $ 2,046,522 $ 2,765,248
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Cost of goods sold 2,843,833 2,687,296
General and administrative expenses 156,520 153,882
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3,000,353 2,841,178
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Earnings (loss) from operations (953,831) (75,930)
Other income:
Interest and other earnings 25,698 95,454
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Earnings (loss) before taxes (928,133) 19,524
Income tax expense -- --
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Net earnings (loss) $ (928,133) $ 19,524
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Earnings per share:
Net earnings (loss) $ (1.91) $ .04
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Kreisler Manufacturing Corporation and Subsidiaries
CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited)
Six Months Ended December 31 1995 1994
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Cash flows from operating activities:
Net Earnings (loss) $(928,133) $ 19,524
Adjustments to reconcile net loss to cash (used)
provided by operating activities:
Depreciation and amortization 29,788 35,842
Unrealized loss on investments -- --
Gain on sale of assets -- --
(Increase) decrease in accounts receivable 498,938 (238,414)
(Increase) decrease in inventories (285,660) (122,337)
(Increase) decrease in other current assets 24,168 259,011
Increase (decrease) in accounts payable (31,465) (24,516)
Increase (decrease) in accrued expenses (31,131) (111,574)
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Net adjustments 204,638 (201,989)
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Net cash (used) provided by operations (723,495) (182,466)
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Cash flows from investing activities:
Purchase of investments -- --
Proceeds from sale of investments 574,029 --
Purchase of property and equipment (30,806) (9,063)
Proceeds from sale of equipment -- --
Loss on sale of investments 9,140 --
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Net cash used in investing activities 552,363 (9,063)
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Net increase (decrease) in cash and
cash equivalents (171,132) (191,529)
Cash and cash equivalents at beginning of year 607,955 1,772,507
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Cash and cash equivalents at December 31 $ 436,823 $1,580,978
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Kreisler Manufacturing Corporation and Subsidiaries
MANAGEMENT'S DISCUSSION AND ANALYSIS OF OPERATIONS
THREE MONTHS AND SIX MONTHS ENDED DECEMBER 31, 1995
Net sales decreased in the second quarter of fiscal year 1996 $532,000 or
39% compared to the second quarter of fiscal year 1995. Net sales for the six
months declined $719,000 or 26% as compared to the same period in 1994. As
discussed in our first quarter management discussion, we anticipated this
decline based on delivery schedules. Our backlog has increased 70% since June
30, 1995. It would appear that the macro economics of our industry are
improving which would bode well for our business.
Our losses for the second quarter of 1996 were $(726,000) compared to a
loss of $(79,000) in the same period in 1994. Our decision to maintain our
work force in anticipation of delivery requirements in the third quarter
affected our profits and our cash flow. We are using our cash reserves to
restructure our organization.
Total cash and investment's reserves declined from $2,290,000 as of
June 30, 1995, to $1,532,000 as of December 31, 1995, $758,000 or 33%. Our
debt is minimal, continued losses at this rate could put the company in
jeopardy. Our working capital of $2,781,000 and a current ratio of 12.1 would
appear adequate to sustain us, but continued losses of this magnitude must end
or the future of this company is in doubt.
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SIGNATURE
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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
January 22, 1996
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<PERIOD-START> JUL-01-1995
<PERIOD-END> DEC-31-1995
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0
0
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<OTHER-SE> 3,262
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<INCOME-PRETAX> (928)
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<NET-INCOME> (928)
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