<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, 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
______
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, 1996 was 485,512
shares.
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Kreisler Manufacturing Corporation and Subsidiaries
CONSOLIDATED BALANCE SHEETS
<TABLE>
<CAPTION>
(Unaudited) (Audited)
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Second Quarter Ended Year Ended
12/31/96 6/30/96
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<S> <C> <C>
Assets
Cash and cash equivalents $ 560,988 $ 587,063
Certificates of deposit - current -- 300,000
Accounts receivable - trade 1,463,006 891,360
Inventories
Raw Materials 973,008 1,058,619
Work in process 266,615 465,034
Finished goods 29,556 49,961
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1,269,179 1,573,614
Other current assets 14,974 21,833
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Total current assets 3,308,147 3,373,870
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Certificates of deposit 540,047 525,344
Property, plant & equip., at cost, less accum.deprec 184,933 204,093
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$4,033,127 $4,103,307
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Liabilities and Stockholders' Equity
Accounts payable - trade $ 420,441 $ 401,896
Accrued expenses 176,705 199,930
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Total current liabilities 597,146 601,826
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Stockholders' Equity
Common Stock, $.50 par value - 3,000,000 shares authorized
485,512 & 823,451 shares issued for 1996 & 1995
respectively and 485,512 shares outstanding 242,756 242,756
Additional paid-in capital 1,571,702 1,571,703
Retained earnings 1,621,523 1,687,022
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3,435,981 3,501,481
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Total Stockholders' Equity 3,435,981 3,501,481
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$4,033,127 $4,103,307
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</TABLE>
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Kreisler Manufacturing Corporation and Subsidiaries
CONSOLIDATED STATEMENTS OF EARNINGS
(Unaudited)
<TABLE>
<CAPTION>
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Three Months Ended December 31 1996 1995
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<S> <C> <C>
Sales $ 2,454,638 $ 824,737
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Cost of goods sold 2,490,503 1,475,651
General and administrative expenses 80,170 91,611
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2,570,673 1,567,262
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Earnings (loss) from operations (116,035) (742,525)
Other income:
Interest and other earnings 25,901 16,031
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Earnings (loss) before taxes (90,134) (726,494)
Income tax expense -- --
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Net earnings (loss) $ (90,134) $ (726,494)
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Earnings per share:
Net earnings (loss) $ (.19) $ (1.49)
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<CAPTION>
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Six Months Ended December 31 1996 1995
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<S> <C> <C>
Sales $ 4,285,479 $ 2,046,522
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Cost of goods sold 4,238,101 2,843,833
General and administrative expenses 144,823 156,520
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4,382,924 3,000,353
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Earnings (loss) from operations (97,445) (953,831)
Other income:
Interest and other earnings 31,945 25,698
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Earnings (loss) before taxes (65,500) (928,133)
Income tax expense -- --
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Net earnings (loss) $ (65,500) $ (928,133)
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Earnings per share:
Net earnings (loss) $ (.14) $ (1.91)
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</TABLE>
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Kreisler Manufacturing Corporation and Subsidiaries
CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited)
<TABLE>
<CAPTION>
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Six Months Ended December 31 1996 1995
- - - - ----------------------------------------------------------------------------- ---------
<S> <C> <C>
Cash flows from operating activities:
Net Earnings (loss) $ (65,500) $(928,133)
Adjustments to reconcile net loss to cash (used)
provided by operating activities:
Depreciation and amortization 26,479 29,788
(Increase) decrease in accounts receivable (571,646) 498,938
(Increase) decrease in inventories 304,435 (285,660)
(Increase) decrease in other current assets 6,859 24,168
Increase (decrease) in accounts payable 18,545 (31,465)
Increase (decrease) in accrued expenses (23,226) (31,131)
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Net adjustments (238,554) 204,638
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Net cash (used) provided by operations (304,054) (723,495)
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Cash flows from investing activities:
Purchase of investments (14,704) --
Proceeds from sale of investments 300,000 574,029
Purchase of property and equipment (7,318) (30,806)
Loss on sale of investments -- 9,140
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Net cash used in investing activities 277,978 552,363
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Net increase (decrease) in cash and cash equivalents (26,076) (171,132)
Cash and cash equivalents at beginning of year 587,064 607,955
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Cash and cash equivalents at December 31 $ 560,988 $ 436,823
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</TABLE>
<PAGE>
Kreisler Manufacturing Corporation and Subsidiaries
MANAGEMENT'S DISCUSSION AND ANALYSIS OF OPERATIONS
THREE MONTHS AND SIX MONTHS ENDED DECEMBER 31, 1996
Net sales increased in the second quarter of fiscal year 1996-1997
$1,630,000 or 198% as compared to the same period in the prior year. Net sales
for the six months ended December 31, 1996 increased $2,239,000 or 109% as
compared to the six months ended December 31, 1995. The improved sales
performance reflects increased commercial aircraft demand more than offsetting
declining military requirements.
Net loss for the second quarter ended December 31,1996 was $90,000 or
3.7%, after an inventory adjustment of $304,000, compared to a loss of $727,000
or 88% during the same period in fiscal year 1995-96. Net loss for the six
months ended December 31, 1996 was $66,000 or 1.5% compared to $928,000 or 45%
during the same period ended December 31, 1995.
Our present focus is on throughput and on-time performance for our
customers. Our success is dependent on meeting commitments.
Our cash flow statement shows a reduction in cash and cash equivalents
of $26,000 since June 30, 1996. Net cash used by operations was $304,000
primarily with an increase in accounts receivable of $572,000, but off-set by a
reduction in inventory of $304,000. Cash flow from investing activities was
$278,000 primarily with the maturity of a $300,000 certificate of deposit.
Our balance sheet continues to reflect no long term debt, working
capital of $3,000,000 and current ratio of 6:1. Expenditures for capital
equipment will be determined by our cash flow and need. Management believes
there are sufficient funds available to take care of both its short term and
long term requirements by internally generated funds or reserves.
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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
January 28, 1997
<PAGE>
KREISLER FOR IMMEDIATE RELEASE
Manufacturing Corporation CONTACT: EDWARD L. STERN
PRESIDENT
KREISLER MANUFACTURING CORPORATION
SECOND QUARTER AND SIX MONTHS 1996 - 1997
Net loss of Kreisler Manufacturing Corporation was $(0.14) per share of common
stock in the second quarter of 1996 compared with $(1.91) per share in the
second quarter of 1995. Highlights are as follows (in thousands except for per
share amounts):
<TABLE>
<CAPTION>
December 31 (Unaudited) Three Months Six Months
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1996 1995 1996 1995
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<S> <C> <C> <C> <C>
Sales $ 2,454 $ 825 $ 4,285 $ 2,046
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Earnings (loss) before income taxes (90) (726) (66) (928)
Income taxes -- -- -- --
Net earnings (loss) (90) (726) (66) (928)
Per share of common stock
Net earnings (loss) $ (0.19) $ (1.49) $ (0.14) $ (1.91)
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</TABLE>
<TABLE>
<CAPTION>
Consolidated Balance Sheets
(in thousands) (Unaudited) 12/31/96 6/30/96
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<S> <C> <C>
Assets
Cash, cash equivalents and investments $ 561 $ 587
Certificates of deposit - current -- 300
Accounts receivable 1,463 891
Inventories 1,269 1,574
Other current assets 15 22
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Total current assets 3,308 3,374
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Certificates of deposit 540 525
Available-for-sale securities -- --
Property and equipment-at cost, less depreciation 185 204
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$4,033 $4,103
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Liabilities and Common Stockholders' Equity
Accounts payable $ 420 $ 402
Accrued expenses 177 200
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Total current liabilities $ 597 $ 602
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Total stockholders' equity $3,436 $3,501
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$4,033 $4,103
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</TABLE>
Stockholders' equity is $7.08 per share in the second quarter of 1996 compared
to $7.21 as of June 30, 1996.
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.
CORPORATE OFFICES: 5960 CENTRAL AVENUE - SUITE H, ST. PETERSBURG, FLORIDA 33707
TELEPHONE: (813) 347-1144
<TABLE> <S> <C>
<ARTICLE> 5
<MULTIPLIER> 1
<S> <C>
<PERIOD-TYPE> 6-MOS
<FISCAL-YEAR-END> JUN-30-1997
<PERIOD-START> JUL-01-1996
<PERIOD-END> DEC-31-1996
<CASH> 560,988
<SECURITIES> 0
<RECEIVABLES> 1,463,006
<ALLOWANCES> 0
<INVENTORY> 1,269,179
<CURRENT-ASSETS> 14,974
<PP&E> 2,889,146
<DEPRECIATION> 2,704,213
<TOTAL-ASSETS> 4,033,127
<CURRENT-LIABILITIES> 597,146
<BONDS> 0
<COMMON> 242,756
0
0
<OTHER-SE> 3,193,225
<TOTAL-LIABILITY-AND-EQUITY> 4,033,127
<SALES> 4,285,479
<TOTAL-REVENUES> 4,285,479
<CGS> 4,382,924
<TOTAL-COSTS> 4,382,924
<OTHER-EXPENSES> 0
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 0
<INCOME-PRETAX> (65,500)
<INCOME-TAX> 0
<INCOME-CONTINUING> 0
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> (65,500)
<EPS-PRIMARY> (0.14)
<EPS-DILUTED> 0.00
</TABLE>
