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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, 1997
----------------
[ ] 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
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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 March 31, 1997 was 485,512
shares.
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Kreisler Manufacturing Corporation and Subsidiaries
CONSOLIDATED BALANCE SHEETS
<TABLE>
<CAPTION>
(Unaudited) (Audited)
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Third Quarter Ended Year Ended
3/31/97 6/30/96
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<S> <C> <C>
Assets
Cash and cash equivalents $ 379,542 $ 587,063
Certificates of deposit - current 311,737 300,000
Accounts receivable - trade 1,590,583 891,360
Inventories
Raw Materials 964,724 1,058,619
Work in process 431,966 465,034
Finished goods 43,197 49,961
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1,439,886 1,573,614
Other current assets 12,600 21,833
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Total current assets 3,734,348 3,373,870
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Certificates of deposit 547,419 525,344
Property, plant & equip., at cost, less accum.deprec 188,366 204,093
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$4,470,133 $4,103,307
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Liabilities and Stockholders' Equity
Accounts payable - trade $ 713,303 $ 401,896
Accrued expenses 233,547 199,930
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Total current liabilities 946,850 601,826
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Stockholders' Equity
Common Stock, $.50 par value - 3,000,000 shares authorized
485,512 shares issued and outstanding 242,756 242,756
Additional paid-in capital 1,571,703 1,571,703
Retained earnings 1,708,824 1,687,022
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3,523,283 3,501,481
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Total Stockholders' Equity 3,523,282 3,501,481
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$4,470,133 $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 March 31 1997 1996
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<S> <C> <C>
Sales $ 2,517,852 $ 1,903,434
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Cost of goods sold 2,378,814 1,942,475
General and administrative expenses 68,891 64,609
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2,447,705 2,007,084
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Earnings (loss) from operations 70,147 (103,650)
Other income:
Interest and other earnings 17,154 22,691
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Earnings (loss) before taxes 87,301 (80,959)
Income tax expense -- --
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Net earnings (loss) $ 87,301 $ (80,959)
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Earnings per share:
Net earnings (loss) $ .18 $ (.17)
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<CAPTION>
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Nine Months Ended March 31 1997 1996
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<S> <C> <C>
Sales $ 6,803,330 $ 3,949,956
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Cost of goods sold 6,616,915 4,786,309
General and administrative expenses 213,713 221,128
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6,830,628 5,007,437
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Earnings (loss) from operations (27,298) (1,057,481)
Other income:
Interest and other earnings 49,098 48,389
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Earnings (loss) before taxes 21,800 (1,009,092)
Income tax expense -- --
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Net earnings (loss) $ 21,800 $(1,009,092)
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Earnings per share:
Net earnings (loss) $ .04 $ (2.08)
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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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Nine Months Ended March 31 1997 1996
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<S> <C> <C>
Cash flows from operating activities:
Net Earnings (loss) $ 21,800 $(1,009,092)
Adjustments to reconcile net loss to cash (used)
provided by operating activities:
Depreciation and amortization 27,015 44,682
(Increase) decrease in accounts receivable (699,223) (308,860)
(Increase) decrease in inventories 133,728 (121,757)
(Increase) decrease in other current assets 9,233 22,403
Increase (decrease) in accounts payable 311,407 305,410
Increase (decrease) in accrued expenses 33,616 13,345
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Net adjustments (184,224) (44,477)
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Net cash (used) provided by operations (162,424) (1,053,869)
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Cash flows from investing activities:
Purchase of investments (22,075) --
Proceeds from sale of investments 300,000 587,020
Purchase of property and equipment (11,287) (36,777)
Loss on sale of investments -- 9,140
Net cash provided by investing activities 266,638 559,383
Net increase (decrease) in cash and cash equivalents 104,214 (494,485)
Cash and cash equivalents at beginning of year 587,064 607,955
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Cash and cash equivalents at March 31 $ 691,278 $ 113,470
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</TABLE>
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Kreisler Manufacturing Corporation and Subsidiaries
MANAGEMENT'S DISCUSSION AND ANALYSIS OF OPERATIONS
THREE MONTHS AND NINE MONTHS ENDED MARCH 31, 1997
Sales for the third quarter ended March 31, 1997, increased $615,000
or 32% compared to the comparable period in 1996. Sales for the nine months
ended March 31, 1997, increased $2,853,000 or 72% compared to the comparable
period in 1996. Commercial aircraft demand worldwide for original equipment and
spares started in 1996 for our products, and it has taken six months to ramp up
our production facilities to meet the on time delivery requirements of our
customers. We now are transitioning to being on schedule with our customer due
dates.
Earnings for the three months ended March 31, 1997, was $87,000 or
$0.18 per share compared to a loss of $81,000 or $0.17 per share in the
comparable period in 1996. Earnings for the nine months ended March 31, 1997,
were $21,000 or $0.04 per share compared to a loss of $1,009,000 or $2.08 per
share in the third quarter of 1996. Profitability has returned to Kreisler with
increased sales exceeding increased costs.
Net cash used by operations was $162,000 and net cash provided by
investing activities was $267,000, increasing cash and cash equivalents from
the beginning of the year $104,000 compared to a $494,000 decrease in the
comparable period in the prior year.
Our balance sheet remains strong. Current ratio is 3.9:1. Working
capital is $2,787,498. Quick ratio is 2.4:1. Short term liquidity management
believes, will be adequately provided by internally generated funds or cash
reserves to meet the needs of the business. Stockholders' equity is $7.26 per
share. As our backlog continues to grow and our on time deliveries improve
Kreisler should improve profitability.
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SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934, the
registrant has dully caused this report to be signed on its behalf by the
undersigned thereunto duly authorized.
KREISLER MANUFACTURING CORPORATION
(Registrant)
By /s/ Edward L. Stern
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Edward L. Stern
President, Treasurer
April 7, 1997
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KREISLER FOR IMMEDIATE RELEASE
MANUFACTURING CORPORATION CONTACT: EDWARD L. STERN
PRESIDENT
KREISLER MANUFACTURING CORPORATION
THIRD QUARTER AND NINE MONTHS 1996 - 1997
Net earnings of Kreisler Manufacturing Corporation was $ .18 per share of
common stock in the third quarter of 1997 compared with a net loss of $ .17 per
share in the third quarter of 1996. Net earnings for the nine months was $ .04
compared with a net loss of $ 2.08 per share in the comparable period of 1996.
<TABLE>
<CAPTION>
March 31 (Unaudited) Third Quarter Nine Months
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1997 1996 1997 1996
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<S> <C> <C> <C> <C>
Sales $ 2,518 $ 1,903 $ 6,803 $ 3,950
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Net earnings (loss) 87 (81) 21 (1,009)
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Net earnings (loss) per share $ .18 $ (.17) $ .04 $ (2.08)
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</TABLE>
<TABLE>
<CAPTION>
Consolidated Balance Sheets
(in thousands) (Unaudited) 3/31/97 6/30/96
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<S> <C> <C>
Assets
Cash, cash equivalents and investments $ 379 $ 587
Certificates of deposit - current 312 300
Accounts receivable 1,590 891
Inventories 1,440 1,574
Other current assets 13 22
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Total current assets 3,734 3,374
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Certificates of deposit 548 525
Property and equipment-at cost, less depreciation 188 204
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$4,470 $4,103
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Liabilities and Common Stockholders' Equity
Accounts payable $ 713 $ 402
Accrued expenses 234 200
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Total current liabilities $ 947 $ 602
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Total stockholders' equity $3,523 $3,501
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$4,470 $4,103
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</TABLE>
Stockholders' equity is $ 7.26 per share as of March 31,1997, compared with
$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.
<TABLE> <S> <C>
<ARTICLE> 5
<MULTIPLIER> 1
<S> <C>
<PERIOD-TYPE> 9-MOS
<FISCAL-YEAR-END> JUN-30-1997
<PERIOD-START> JUL-01-1996
<PERIOD-END> MAR-31-1997
<CASH> 691,279
<SECURITIES> 0
<RECEIVABLES> 1,590,583
<ALLOWANCES> 0
<INVENTORY> 1,493,886
<CURRENT-ASSETS> 12,600
<PP&E> 2,893,114
<DEPRECIATION> 2,704,748
<TOTAL-ASSETS> 4,470,133
<CURRENT-LIABILITIES> 946,850
<BONDS> 0
0
0
<COMMON> 242,756
<OTHER-SE> 3,280,527
<TOTAL-LIABILITY-AND-EQUITY> 4,470,133
<SALES> 6,803,330
<TOTAL-REVENUES> 6,803,330
<CGS> 6,830,628
<TOTAL-COSTS> 6,830,628
<OTHER-EXPENSES> 0
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 0
<INCOME-PRETAX> 21,800
<INCOME-TAX> 0
<INCOME-CONTINUING> 0
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 21,800
<EPS-PRIMARY> 0.04
<EPS-DILUTED> 0.00
</TABLE>
