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 2, 1998
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 2, 1998
Common Stock, par value $0.25 775,585 shares
INDEX
PART I FINANCIAL INFORMATION
Item 1. Financial Statements
Consolidated Balance Sheets May 2,
1998 and November 1, 1997 3 - 4
Consolidated Statements of Income -
thirteen weeks ended May 2, 1998
and thirteen weeks May 3, 1997
and twenty-six weeks ended May 2,
1998 and twenty-seven weeks ended
May 3, 1997 5
Consolidated Statements of Cash Flows -
twenty-six weeks ended May 2, 1998
and twenty-seven weeks ended May 3,
1997 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 2, November 1,
1998 1997
CURRENT ASSETS
Cash and cash equivalents $3,574,910 $2,981,027
Trade accounts receivable 639,794 903,496
Inventories - at lower of cost
or market 348,452 322,707
Prepaid expenses 14,298 28,992
Marketable securities 450,134 375,489
Total current assets 5,027,588 4,611,711
PROPERTY AND EQUIPMENT
Land 114,006 114,006
Building and improvements 335,845 335,845
Machinery and equipment 729,198 598,607
Small tools 53,580 53,580
Furniture and fixtures 8,048 8,048
Office equipment 41,551 40,990
Automobile 42,336 42,336
Total property and
equipment 1,324,564 1,193,412
Less accumulated depreciation 794,308 775,441
Net property and
equipment 530,256 417,971
Total assets $5,557,844 $5,029,682
OPT-Sciences Corporation and Subsidiary
CONSOLIDATED BALANCE SHEETS
(Unaudited)
LIABILITIES AND STOCKHOLDERS' EQUITY
May 2, November 1,
1998 1997
CURRENT LIABILITIES
Accounts payable - trade $ 116,337 $ 76,267
Accrued income taxes 220,785 146,210
Other current liabilities 191,871 283,211
Total current liabilities 528,993 505,688
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 4,654,154 4,155,972
Net unrealized gains on
equity securities 39,220 32,545
Less treasury stock at cost -
224,415 shares and 224,415
shares respectively ( 187,218) ( 187,218)
Total stockholders' equity 5,028,851 4,523,994
Total liabilities and
stockholders' equity $5,557,844 $5,029,682
OPT-Sciences Corporation and Subsidiary
CONSOLIDATED STATEMENTS OF INCOME AND RETAINED EARNINGS
(Unaudited)
Thirteen Thirteen Twenty-Six Twenty-Seven
Weeks Ended Weeks Ended Weeks ended Weeks ended
May 2, May 3, May 2, May 3,
1998 1997 1998 1997
NET SALES $1,145,059 $ 771,212 $2,192,063 $1,434,984
COST OF SALES 648,865 592,100 1,196,446 1,072,285
Gross profit
on sales 496,194 179,112 995,617 362,699
OPERATING EXPENSES
Sales & delivery 8,601 9,257 11,794 12,612
General and
administrative 119,902 82,490 239,396 152,927
Total operating
expenses 128,503 91,747 251,190 165,539
Operating income 367,691 87,365 744,427 197,160
OTHER INCOME 45,371 40,503 85,736 78,540
Net income
before taxes 413,062 127,868 830,163 275,700
FEDERAL AND STATE
INCOME TAXES 165,799 51,100 331,981 110,100
Net income 247,263 76,768 498,182 165,600
RETAINED EARNINGS -
beginning of period 4,406,891 3,570,471 4,155,972 3,481,639
RETAINED EARNINGS -
end of period $4,654,154 $3,647,239 $4,654,154 $3,647,239
EARNINGS PER
SHARE OF
COMMON STOCK .32 .10 .64 .21
Average shares of
stock outstanding 775,585 775,615 775,585 775,660
OPT-Sciences Corporation and Subsidiary
CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited)
Twenty-six Twenty-seven
Weeks Ended Weeks Ended
May 2, May 3,
1998 1997
CASH FLOWS FROM OPERATIONS
Net income 498,182 $165,600
Adjustments to reconcile net
income to net cash provided
by operating activities
Depreciation and
amortization 18,867 22,790
Loss (gain) on sale of
securities 798 ( 8,043)
Decrease (increase) in
Accounts receivable 263,702 (125,002)
Inventories ( 25,745) ( 56,394)
Prepaid expenses 14,694 ( 19,104)
(Decrease) increase in
Accounts payable 40,070 42,151
Accrued income taxes 74,575 (151,050)
Other current liabilities ( 91,340) ( 50,450)
Net cash provided (used) by
operating activities 793,803 (179,502)
CASH FLOWS FROM INVESTING
ACTIVITIES
Additions to property and
equipment (131,152) ( 47,942)
Purchases of securities ( 75,018) (112,500)
Sale of securities 6,250 324,585
Net cash (used) provided by
investing activities (199,920) 164,143
OPT-Sciences Corporation and Subsidiary
CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited)
Twenty-six Twenty-seven
Weeks Ended Weeks Ended
May 2, May 3,
1998 1997
CASH FLOW FROM
FINANCING ACTIVITIES:
Purchases of treasury stock $( -0-) $( 750)
Net cash used in
financing activities ( -0-) ( 750)
Increase (decrease) in cash 593,883 ( 16,109)
Cash and cash equivalents
at beginning of period 2,981,027 2,557,251
Cash and cash equivalents
at end of period $3,574,910 $2,541,142
SUPPLEMENTAL DISCLOSURES:
Interest paid $ -0- $ -0-
Income taxes paid $ 269,781 $ 277,721
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 2, 1998 and November 1, 1997 and the results
of operations for the twenty-six weeks ended May 2, 1998 and
for the twenty-seven weeks ended May 3, 1997 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 six months of the year
from $2,981,027 to $3,574,910. Profits generated, coupled
with a decrease in accounts receivable and an increase in
current obligations more than offset an increase in inven-
tory and required payments of income taxes due. There are
no material obligations in existence which would be antici-
pated 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 about 53% from the level of
the first six months of the prior year which continues the
growth trend of the prior year. Gross profits increased by
about 175% from those of the prior year due to an increase
in volume which then makes more efficient use of the labor
force. Earnings from investments are higher due to higher
invested balances 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
