U.S. SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, DC 20549
FORM 10-QSB
Quarterly report under to Section 13 or 15(d) of
the Securities Exchange Act of 1934
For the quarterly period ended May 3, 1997
Commission File No. 0-1455
OPT - SCIENCES CORPORATION
(Exact name of small business issuer as specified in its charter)
New Jersey 21-0681502
(State or other jurisdiction of (I.R.S. Employer
incorporation or organization) identification number)
1912 Bannard Street, Riverton, NJ 08077
(Address of principal executive offices) (Zip Code)
Registrant's telephone number, including area code: 609-829-2800
Check whether the issuer (1) filed all reports required to be
filed by Section 13 or 15(d) of the Exchange Act during the past
twelve 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.
Yes X No
State the number of shares outstanding of each of the issuer's
classes of common equity, as of the latest practicable date:
Class Outstanding at May 3, 1997
Common Stock, par value $0.25 775,615 shares
INDEX
PART I FINANCIAL INFORMATION
Item 1. Financial Statements
Consolidated Balance Sheets May 3,
1997 and October 26, 1996 3 - 4
Consolidated Statements of Income -
thirteen weeks ended May 3, 1997
and twelve weeks April 27, 1996
and twenty-seven weeks ended May 3,
1997 and twenty-six weeks ended
April 27, 1996 5
Consolidated Statements of Cash Flows -
twenty-seven weeks ended May 3, 1997
and twenty-six weeks ended April 27,
1996 6 - 7
Notes to Consolidated Financial Statements 8
Item 2. Management's Discussion and Analysis or Plan
of Operation 9
PART II OTHER INFORMATION
Item 1 Not Applicable
Item 2 Not Applicable
Item 3 Not Applicable
Item 4 Not Applicable
Item 5 Not Applicable
Item 6 Not Applicable
SIGNATURE 10
OPT-Sciences Corporation and Subsidiary
CONSOLIDATED BALANCE SHEETS
(Unaudited)
ASSETS
May 3, October 26,
1997 1996
CURRENT ASSETS
Cash and cash equivalents $2,541,142 $2,557,251
Trade accounts receivable 605,180 480,178
Inventories - at lower of cost
or market 276,000 219,606
Prepaid income taxes 32,680 -0-
Prepaid expenses 12,362 25,938
Marketable securities 352,577 560,962
Total current assets 3,819,941 3,843,935
PROPERTY AND EQUIPMENT
Land 114,006 114,006
Building and improvements 324,044 304,044
Machinery and equipment 594,783 594,783
Small tools 53,580 53,580
Furniture and fixtures 8,048 8,048
Office equipment 35,615 35,615
Automobile 42,336 30,315
Total property and
equipment 1,172,412 1,140,391
Less accumulated depreciation 754,209 747,340
Net property and
equipment 418,203 393,051
Total assets $_________ $_________
OPT-Sciences Corporation and Subsidiary
CONSOLIDATED BALANCE SHEETS
(Unaudited)
LIABILITIES AND STOCKHOLDERS' EQUITY
May 3, October 26,
1997 1996
CURRENT LIABILITIES
Accounts payable - trade $85,911 $43,760
Accrued income taxes -0- 151,050
Other current liabilities 153,329 203,779
Total current liabilities 239,240 398,589
STOCKHOLDERS' EQUITY
Common capital stock - par value
$.025 per share - authorized
and issued 1,000,000 shares 250,000 250,000
Additional paid in capital 272,695 272,695
Retained earnings 3,647,239 3,481,639
Net unrealized gains on
equity securities 16,108 20,451
Less treasury stock at cost -
224,385 shares and 223,885
shares respectively ( 187,138) ( 186,388)
Total stockholders' equity 3,998,904 3,838,397
Total liabilities and
stockholders' equity $_________ $_________
OPT-Sciences Corporation and Subsidiary
CONSOLIDATED STATEMENTS OF INCOME AND RETAINED EARNINGS
(Unaudited)
Thirteen Twelve Twenty-Seven Twenty-Six
Weeks Ended Weeks Ended Weeks ended Weeks ended
May 3, April 27, May 3, April 27,
1997 1996 1997 1996
NET SALES $771,212 $636,760 $1,434,984 $1,128,101
COST OF SALES 592,100 454,404 1,072,285 789,409
Gross profit
on sales 179,112 182,356 362,699 338,692
OPERATING EXPENSES
Sales & delivery 9,257 4,283 12,612 8,688
General and
administrative 82,490 60,052 152,927 132,976
Total operating
expenses 91,747 64,335 165,539 141,664
Operating income 87,365 118,021 197,160 197,028
OTHER INCOME 40,503 35,623 78,540 70,007
Net income
before taxes 127,868 153,644 275,700 267,035
FEDERAL AND STATE
INCOME TAXES 51,100 61,350 110,100 106,650
Net income 76,768 92,294 165,600 160,385
RETAINED EARNINGS -
beginning of period 3,570,471 3,146,420 3,481,639 3,078,329
RETAINED EARNINGS -
end of period $_________ $_________ $_________ $_________
EARNINGS PER
SHARE OF
COMMON STOCK .10 .12 .21 .21
Average shares of
stock outstanding 775,615 776,131 775,660 776,310
OPT-Sciences Corporation and Subsidiary
CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited)
Twenty-seven Twenty-six
Weeks Ended Weeks Ended
May 3, April 27,
1997 1996
CASH FLOWS FROM OPERATIONS
Net income $165,600 $160,385
Adjustments to reconcile net
income to net cash provided
by operating activities
Depreciation and
amortization 22,790 17,306
Loss (gain) on sale of
securities ( 8,043) ( 2,656)
Decrease (increase) in
Accounts receivable (125,002) ( 82,005)
Inventories ( 56,394) ( 34,362)
Prepaid expenses ( 19,104) 8,783
(Decrease) increase in
Accounts payable 42,151 ( 15,667)
Accrued income taxes (151,050) 4,911
Other current liabilities ( 50,450) ( 13,215)
Net cash provided by
operating activities (179,502) 43,480
CASH FLOWS FROM INVESTING
ACTIVITIES
Additions to property and
equipment ( 47,942) ( 7,950)
Purchases of securities (112,500) ( 10,061)
Sale of securities 324,585 9,966
Net cash used in
investing activities 164,143 ( 8,045)
OPT-Sciences Corporation and Subsidiary
CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited)
Twenty-seven Twenty-six
Weeks Ended Weeks Ended
May 3, April 27,
1997 1996
CASH FLOW FROM
FINANCING ACTIVITIES:
Purchases of treasury stock $( 750) $( 563)
Net cash used in
financing activities ( 750) ( 563)
(Decrease) increase in cash ( 16,109) 34,872
Cash and cash equivalents
at beginning of period 2,557,251 2,628,274
Cash and cash equivalents
at end of period $_________ $_________
SUPPLEMENTAL DISCLOSURES:
Interest paid $_________ $________
Income taxes paid $_________ $________
OPT-Sciences Corporation and Subsidiary
NOTES TO CONDENSED FINANCIAL STATEMENTS
(Unaudited)
1. In the opinion of management, the accompanying unaudited con-
solidated financial statements contain all adjustments neces-
sary to present fairly OPT-Sciences Corporation's financial
position as of May 3, 1997 and October 26, 1996, and the re-
sults of operations for the twenty-seven weeks ended May 3,
1997 and for the twenty-six weeks ended April 27, 1996 and
cash flows for the respective periods then ended.
2. The results of operations for the periods presented are not
necessarily indicative of the results to be expected for the
full year.
MANAGEMENT'S DISCUSSION AND ANALYSIS OF
FINANCIAL CONDITION AND RESULTS OF OPERATIONS
FINANCIAL CONDITION
Cash and cash equivalents--OPT Sciences Corporation's cash
balances decreased during the first six months of the year
from $2,557,251 to $2,541,142. Profits generated could not
offset increases in accounts receivable and inventory and
required payments of income taxes due. There are no mate-
rial obligations in existence which would be anticipated to
cause any substantial decrease in the cash balances from
other than the Company's future operations.
RESULTS OF OPERATIONS
Sales revenues have increased by 27.2% from the level of the
first six months of the prior year. The Company was able
to produce the additional volume by increasing the labor
force. This increased labor factor increased the cost of
production and resulted in a lower GP%. The additional staff
should allow the Company to achieve better efficiencies in
the future. Earnings from investments are higher due to
higher investment returns than at the same time last year.
SIGNATURES
In accordance with the requirements of the Exchange Act, the
registrant this report to be signed on its behalf by the under-
signed, thereunto duly authorized.
OPT-SCIENCE CORPORATION
Registrant
Anderson McCabe, President
Date
Harvey Habeck,
Date Chief Accountant
