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 March 31, 1996
----------------
[ ] 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
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Kreisler Manufacturing Corporation
(Exact name of registrant as specified in its charter)
Delaware 22-1044792
(State of other jurisdiction of (I.R.S. employer
incorporation or organization) Identification No.)
5960 Central Avenue, Suite H., St. Petersburg, Florida 33707
(Address of principal executive offices)
(813) 347-1144
(Registrant's telephone number, including area code)
- ------------------------------------------------------------------------------
(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 March 31, 1996 was 485,512
shares.
Kreisler Manufacturing Corporation and Subsidiaries
CONSOLIDATED BALANCE SHEETS
<TABLE>
<CAPTION>
(Unaudited) (Audited)
Third Quarter
Ended Year Ended
3/31/96 6/30/95
------------- -----------
<S> <C> <C>
Assets
Cash and cash equivalents $ 113,470 $ 607,954
Certificates of deposit - current 594,000 306,990
Accounts receivable - trade 1,323,222 1,014,362
Inventories
Raw Materials 864,699 782,781
Work in process 361,367 325,157
Finished goods 64,529 60,900
----------- -----------
1,290,595 1,168,838
Other current assets 15,631 38,034
----------- -----------
Total current assets 3,336,918 3,136,178
----------- -----------
Certificates of deposit 497,590 797,592
Available-for-sale securities -- 577,989
Property, plant & equip., at cost, less accum.deprec. 217,488 225,393
----------- -----------
$ 4,051,996 $ 4,737,152
----------- -----------
Liabilities and Stockholders' Equity
Accounts payable - trade $ 449,228 $ 143,818
Accrued expenses 179,191 165,846
----------- -----------
Total current liabilities 628,419 309,664
----------- -----------
Stockholders' Equity
Common Stock, $.50 par value - 3,000,000 shares
authorized 485,512 & 823,451 shares issued
3/31/96 & 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 1,600,851 5,021,979
Unrealized holding gains on available-for-sale
securities 8,268 3,088
----------- -----------
3,423,577 8,104,170
----------- -----------
Less - 337,939 shares of common stock in
treasury, at cost -- (3,676,682)
----------- -----------
Total Stockholders' Equity 3,423,577 4,427,488
$ 4,051,996 $ 4,737,152
----------- -----------
</TABLE>
Kreisler Manufacturing Corporation and Subsidiaries
CONSOLIDATED STATEMENTS OF EARNINGS
(Unaudited)
Three Months Ended March 31 1996 1995
---- ----
Sales $ 1,903,434 $ 1,251,339
----------- -----------
Cost of goods sold 1,942,475 1,657,105
General and administrative expenses 64,609 70,097
----------- -----------
2,007,084 1,727,202
----------- -----------
Earnings (loss) from operations (103,650) (475,863)
Other income:
Interest and other earnings 22,691 32,945
----------- -----------
Earnings (loss) before taxes (80,959) (442,918)
Income tax expense -- --
----------- -----------
Net earnings (loss) $ (80,959) $ (442,918)
Earnings per share:
Net earnings (loss) $ (.17) $ (.88)
----------- -----------
Nine Months Ended March 31 1996 1995
---- ----
Sales $ 3,949,956 $ 4,016,587
----------- -----------
Cost of goods sold 4,786,309 4,344,401
General and administrative expenses 221,128 223,979
----------- -----------
5,007,437 4,568,380
----------- -----------
Earnings (loss) from operations (1,057,481) (551,793)
Other income:
Interest and other earnings 48,389 128,399
----------- -----------
Earnings (loss) before taxes (1,009,092) (423,394)
Income tax expense -- --
----------- -----------
Net earnings (loss) $(1,009,092) $ (423,394)
----------- -----------
Earnings per share:
Net earnings (loss) $ (2.08) $ (.84)
----------- -----------
Kreisler Manufacturing Corporation and Subsidiaries
CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited)
<TABLE>
<CAPTION>
Nine Months Ended March 31 1996 1995
---- ----
<S> <C> <C>
Cash flows from operating activities:
Net Earnings (loss) $(1,009,092) $ (423,394)
Adjustments to reconcile net loss to
cash (used) provided by operating
activities:
Depreciation and amortization 44,682 53,764
Unrealized loss on investments -- --
Gain on sale of assets -- --
(Increase) decrease in accounts receivable (308,860) (102,260)
(Increase) decrease in inventories (121,757) (80,070)
(Increase) decrease in other current assets 22,403 257,154
Increase (decrease) in accounts payable 305,410 (18,923)
Increase (decrease) in accrued expenses 13,345 (107,089)
----------- -----------
Net adjustments (44,477) 2,576
----------- -----------
Net cash (used) provided by operations (1,053,869) (420,818)
----------- -----------
Cash flows from investing activities:
Purchase of investments -- --
Proceeds from sale of investments 587,020 --
Purchase of property and equipment (36,777) (11,581)
Proceeds from sale of equipment -- --
Loss on sale of investments 9,140 --
----------- -----------
Net cash used in investing activities 559,383 (11,581)
----------- -----------
Net increase (decrease) in cash and cash equivalents (494,485) (432,399)
Cash and cash equivalents at beginning of year 607,955 3,489,298
----------- -----------
Cash and cash equivalents at March 31 $ 113,470 $ 3,056,899
----------- -----------
</TABLE>
Kreisler Manufacturing Corporation and Subsidiaries
MANAGEMENT'S DISCUSSION AND ANALYSIS OF OPERATIONS
THREE MONTHS AND NINE MONTHS ENDED MARCH 31, 1996
Sales results for the third quarter ended March 31, 1996, improved over
the prior year. Sales increased for the quarter $652,000 or 52%, and for the
nine months declined $66,000 or 2%. In the third quarter, direct labor and
overhead declined 47% and 10% points respectively, as a percent of sales.
Material costs declined ten percentage points.
Loss for the quarter was $81,000 or 4.3% compared to a loss of $443,000
or 35.4% for the comparable period in 1995. The current nine month losses are
$1,009,000 or 25.5% compared to a loss of $423,000 or 10.5% in the same period
of the prior year. This current nine month loss reflects second quarter sales of
$825,000. While the second quarter results have impacted our losses for fiscal
year 1995-1996, we are encouraged with the change in direction in the third
quarter.
Our balance sheet remains strong. Our cash/investments have declined
since June 30, 1995 by over a million dollars or 53%. Our cash/investment
balances are presently at approximately $1,200,000 with receivables over
$1,300,000 and no long term debt.
The aerospace industry appears to have bottomed out; airlines are
showing healthy profits and they are purchasing aircraft. At the present time we
are beginning to experience the increased demand in new orders. In the third
quarter we demonstrated our ability to perform and be responsive to customer
requirements. We anticipate continuous improvement in our pursuit of engineering
and manufacturing excellence and, with increased demand, a return to
profitability.
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
April 23, 1996
FOR IMMEDIATE RELEASE
CONTACT: EDWARD L. STERN
PRESIDENT
KREISLER
MANUFACRUTING CORPORATION
KREISLER MANUFACTURING CORPORATION
THIRD QUARTER AND NINE MONTHS 1995 - 1996
Net loss of Kreisler Manufacturing Corporation was $.17 per share of common
stock in the third quarter of 1996 compared with a net loss of $ .88 per share
in the third quarter of 1995. Net loss for the nine months was $2.08 compared
with $ .84 per share in the comparable period of 1995.
March 31 (Unaudited) Third Quarter Nine Months
1996 1995 1996 1995
---- ---- ---- ----
Sales $ 1,903 $ 1,252 $ 3,950 $ 4,017
------- ------- ------- -------
Net earnings (loss) (81) (442) (1,009) (423)
------- ------- ------- -------
Net loss per share $ (.17) $ (.88) $ (2.08) $ (.84)
------- ------- ------- -------
Consolidated Balance Sheets
(in thousands) (Unaudited) 3/31/96 6/30/95
------- -------
Assets
Cash, cash equivalents and investments $ 113 $ 607
Certificates of deposit - current 594 307
Accounts receivable 1,323 1,014
Inventories 1,291 1,169
Other current assets 16 38
------ ------
Total current assets 3,337 3,136
------ ------
Certificates of deposit 498 798
Available-for-sale securities -- 578
Property and equipment-at cost, less depreciation 217 225
------ ------
$4,052 $4,737
------ ------
Liabilities and Common Stockholders' Equity
Accounts payable $ 449 $ 144
Accrued expenses 179 166
------ ------
Total current liabilities $ 628 $ 310
------ ------
Total stockholders' equity $3,424 $4,427
------ ------
$4,052 $4,737
------ ------
Stockholders' equity is $7.05 per share as of March 31, 1996, compared with
$10.77 a year earlier.
Kreisler Manufacturing Corporation (OTC-KRSL) fabricates metal component parts
and assemblies for both military and commercial aircraft engines including
manifold assemblies, impingement tubes and blade locks.
<TABLE> <S> <C>
<ARTICLE> 5
<MULTIPLIER> 1,000
<S> <C>
<PERIOD-TYPE> 9-MOS
<FISCAL-YEAR-END> JUN-30-1996
<PERIOD-START> JUL-01-1995
<PERIOD-END> MAR-31-1996
<CASH> 707
<SECURITIES> 0
<RECEIVABLES> 1,323
<ALLOWANCES> 0
<INVENTORY> 1,291
<CURRENT-ASSETS> 3,835
<PP&E> 2,874
<DEPRECIATION> 2,657
<TOTAL-ASSETS> 4,052
<CURRENT-LIABILITIES> 628
<BONDS> 0
<COMMON> 243
0
0
<OTHER-SE> 3,181
<TOTAL-LIABILITY-AND-EQUITY> 4,052
<SALES> 3,950
<TOTAL-REVENUES> 3,950
<CGS> 4,786
<TOTAL-COSTS> 4,786
<OTHER-EXPENSES> 221
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 0
<INCOME-PRETAX> (1,009)
<INCOME-TAX> 0
<INCOME-CONTINUING> 0
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> (1,009)
<EPS-PRIMARY> (2.08)
<EPS-DILUTED> 0.00
</TABLE>
