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 August 2, 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 August 2, 1997
Common Stock, par value $0.25 775,585 shares
INDEX
PART I FINANCIAL INFORMATION
Item 1. Financial Statements
Consolidated Balance Sheets - August 2,
1997 and October 26, 1996 3 - 4
Consolidated Statements of Income -
thirteen weeks ended August 2, 1997
and July 27, 1996 and forty weeks
ended August 2, 1997 and thirty-nine
weeks ended July 27, 1996 5
Consolidated Statements of Cash Flows -
forty weeks ended August 2, 1997 and
thirty-nine weeks ended July 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
August 2, October 26,
1997 1996
CURRENT ASSETS
Cash and cash equivalents $2,639,266 $2,557,251
Trade accounts receivable 782,909 480,178
Inventories - at lower of cost
or market 235,353 219,606
Prepaid expenses 8,505 25,938
Marketable securities 377,009 560,962
Total current assets 4,043,042 3,843,935
PROPERTY AND EQUIPMENT
Land 114,006 114,006
Building and improvements 335,845 304,044
Machinery and equipment 598,609 594,783
Small tools 53,580 53,580
Furniture and fixtures 8,048 8,048
Office equipment 40,990 35,615
Automobile 42,336 30,315
Total property and
equipment 1,193,414 1,140,391
Less accumulated depreciation 765,604 747,340
Net property and
equipment 427,810 393,051
Total assets $_________ $_________
OPT-Sciences Corporation and Subsidiary
CONSOLIDATED BALANCE SHEETS
(Unaudited)
LIABILITIES AND STOCKHOLDERS' EQUITY
August 2, October 26,
1997 1996
CURRENT LIABILITIES
Accounts payable - trade $40,541 $43,760
Accrued income taxes 49,980 151,050
Other current liabilities 134,567 203,779
Total current liabilities 225,088 398,589
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 3,878,843 3,481,639
Net unrealized gains on
equity securities 31,444 20,451
Less treasury stock at cost -
224,415 shares and 223,885
shares respectively ( 187,218) ( 186,388)
Total stockholders' equity 4,245,764 3,838,397
Total liabilities and
stockholders' equity $_________ $_________
OPT-Sciences Corporation and Subsidiary
CONSOLIDATED STATEMENTS OF INCOME AND RETAINED EARNINGS
(Unaudited)
Thirteen Thirteen Forty Thirty-Nine
Weeks Ended Weeks Ended Weeks ended Weeks ended
August 2, July 27, August 2, July 27,
1997 1996 1997 1996
NET SALES $1,046,344 $778,084 $2,481,328 $1,906,185
COST OF SALES 627,572 454,182 1,699,857 1,243,591
Gross profit
on sales 418,772 323,902 781,471 662,902
OPERATING EXPENSES
Sales & delivery 3,371 5,997 15,983 14,685
General and
administrative 65,135 62,431 218,062 195,407
Total operating
expenses 68,506 68,428 234,045 210,092
Operating income 350,266 255,474 547,426 452,502
OTHER INCOME 35,338 32,245 113,878 102,245
Net income
before taxes 385,604 287,719 661,304 554,754
FEDERAL AND STATE
INCOME TAXES 154,000 131,850 264,100 238,500
Net income 231,604 155,869 397,204 316,254
RETAINED EARNINGS -
beginning of period 3,647,239 3,238,714 3,481,639 3,078,329
RETAINED EARNINGS -
end of period $_________ $_________ $_________ $_________
EARNINGS (loss)
PER SHARE OF
COMMON STOCK .30 .20 .51 .41
Average shares of
stock outstanding 775,592 776,109 775,638 776,243
OPT-Sciences Corporation and Subsidiary
CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited)
Forty Thirty-nine
Weeks Ended Weeks Ended
July , July 27,
1997 1996
CASH FLOWS FROM OPERATIONS
Net income $397,204 $316,254
Adjustments to reconcile net
income to net cash provided
by operating activities
Depreciation and
amortization 34,185 18,629
(Gain) on sale of
securities ( 7,954) ( 2,656)
Decrease (increase) in
Accounts receivable (302,731) ( 146,425)
Inventories ( 15,747) ( 21,521)
Prepaid expenses 17,433 16,820
(Decrease) increase in
Accounts payable ( 3,219) ( 13,689)
Accrued income taxes (101,070) 88,091
Other current liabilities ( 69,212) ( 2,328)
Net cash (used) provided by
operating activities ( 51,111) 253,175
CASH FLOWS FROM INVESTING
ACTIVITIES
Additions to property and
equipment ( 68,944) ( 57,951)
Purchases of securities (125,060) ( 28,811)
Sale of securities 327,960 9,966
Net cash provided (used)
by investing activities 133,956 ( 76,796)
OPT-Sciences Corporation and Subsidiary
CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited)
Forty Thirty-nine
Weeks Ended Weeks Ended
August 2, July 27,
1997 1996
CASH FLOWS FROM
FINANCING ACTIVITIES:
Purchases of treasury
stock $( 830) ($ 563)
Net cash used in
financing activities ( 830) ( 563)
Increase in cash 82,015 175,816
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 August 2, 1997 and October 26, 1996, and the re-
sults of operations for the forty weeks ended August 2, 1997
and the thirty-nine weeks ended July 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 increased during the first nine months of the year
from $2,557,251 to $2,639,266. Profits generated more than
offset increases in accounts receivable and inventory and
required payments of income taxes due. There are no materi-
al 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 30.1% from the level of the
first nine months of the prior year. The Company was able
to produce the additional volume by increasing the labor
force. This increased labor force increased the cost of
production and resulted in lower gross profit percent than
the prior year. The additional staff should allow the
Company to achieve better efficiencies in the future and
handle higher volume. This was especially evident in the
3rd quarter. 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
