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 January 29, 2000
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 January 29, 2000
Common Stock, par value $0.25 775,575 shares
INDEX
PART I FINANCIAL INFORMATION
Item 1. Financial Statements
Consolidated Balance Sheets - January 29,
2000 and October 30, 1999 3
Consolidated Statements of Income -
thirteen weeks ended January 29, 2000 and
thirteen weeks ended January 30, 1999 5
Consolidated Statements of Cash Flows -
thirteen weeks ended January 29, 2000 and
thirteen weeks ended January 30, 1999 6
Notes to Consolidated Financial Statements 7
Item 2. Management's Discussion and Analysis or Plan
of Operation 8
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 9
ASSETS
January 29, October 30,
2000 1999
CURRENT ASSETS
Cash and cash equivalents $ 4,431,407 $ 4,308,767
Trade accounts receivable 382,647 573,215
Inventories 409,745 487,793
Prepaid expenses 15,737 25,111
Prepaid income tax 184,106 184,106
Marketable securities 461,668 497,184
Total current assets 5,885,310 6,076,176
PROPERTY AND EQUIPMENT
Land 114,006 114,006
Building and improvements 346,571 346,571
Machinery and equipment 849,049 830,027
Small tools 53,580 53,580
Furniture and fixtures 8,048 8,048
Office equipment 50,924 38,265
Automobile 42,336 42,336
Total property and
equipment 1,464,514 1,432,833
Less: accumulated depreciation 893,794 875,156
Net property and
equipment 570,720 557,677
Total assets $ 6,456,030 $ 6,633,853
LIABILITIES AND STOCKHOLDERS' EQUITY
January 29, October 30,
2000 1999
CURRENT LIABILITIES
Accounts payable - trade $ 48,516 $ 42,048
Accrued income taxes -0- -0-
Other current liabilities 117,492 261,209
Total current liabiliti 166,008 303,257
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 5,999,593 6,004,651
Accumulated other comprehensive income:
Unrealized holding (loss)
on marketable securities (45,028) (9,512)
Less treasury stock at cost -
224,425 shares (187,238) (187,238)
Total stockholders' equity 6,290,022 6,330,596
Total liabilities and
stockholders' equity $ 6,456,030 $ 6,633,853
Thirteen Weeks Thirteen Weeks
Ended Ended
January 29, 2000 January 30, 1999
NET SALES $ 668,020 $ 884,176
COST OF SALES 618,760 592,144
Gross profit on sales 49,260 292,032
OPERATING EXPENSES
Sales & delivery 11,793 7,579
General and administrative 113,985 137,474
Total operating expenses 125,778 145,053
Operating income (loss) (76,518) 146,979
OTHER INCOME 71,460 55,695
Net income before taxes (5,058) 202,674
FEDERAL AND STATE
INCOME TAXES -0- 87,150
Net income (5,058) 115,524
RETAINED EARNINGS -
beginning of period 6,004,651 5,254,632
RETAINED EARNINGS -
end of period $ 5,999,593 $ 5,370,156
EARNINGS PER SHARE OF
COMMON STOCK -- 0.15
Average shares of
stock outstanding 775,575 775,585
Thirteen Weeks Thirteen Weeks
Ended January 29, Ended January 30,
2000 1999
CASH FLOWS FROM OPERATING ACTIVITIES
Net income (loss) $ (5,058) $ 115,524
Adjustments to reconcile net income to net
cash provided by operating activities:
Depreciation 18,638 19,632
Decrease (increase) in:
Accounts receivable 190,568 131,264
Inventories 78,048 15,416
Prepaid expenses 9,374 (10,718)
(Decrease) increase in:
Accounts payable 6,468 (15,660)
Accrued income taxes -0- (112,850)
Other current liabilities (143,717) (205,957)
Net cash provided (used)
by operating activities 154,321 (63,349)
CASH FLOWS FROM INVESTING ACTIVITIES
Additions to property and equipment
(31,681) -0-
Purchases of securities -0- (25,000)
Net cash (used)
by investing activities $ (31,681) $ (25,000)
Increase (decrease) in cash 122,640 (88,349)
Cash and cash equivalents
at beginning of year 4,308,767 4,190,509
Cash and cash equivalents
at end of year $ 4,431,407 $ 4,102,160
SUPPLEMENTAL DISCLOSURES:
Interest paid -0- -0-
Income taxes paid $ -0- $ 200,000
1. In the opinion of management, the accompanying unaudited
consolidated financial statements contain all adjustments necessary
to present fairly OPT-Sciences Corporation's financial position as
of January 29, 2000 and October 30, 1999, and the results of
operations for the thirteen weeks ended January 29, 2000 and January
30, 1999 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 quarter of the year from
$4,308,767 to $4,431,407. Decreases in accounts receivable and
inventory, offset decreases in current obligations. There are no
material 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
First quarter sales decreased by approximately 23% from the same
period last year. This is due primarily to order cut-backs from
several of our major customers. These cut-backs are partly
attributed to the Boeing engineers strike but mostly because of
business conditions in general. More importantly, the gross
profit dropped almost 83% resulting in a net operating loss of
approximately $76,500. This extraordinary situation was the
combined result of having to write off a significant amount of
obsolete finished goods inventory and a weak first quarter.
There is always a certain risk in maintaining inventory of custom
manufactured goods for which there is only one possible use. We
expect that during the current quarter the demand for replacement
inventory will increase until supply reaches a new equilibrium.
Earnings from our investments increased by over 28% as increased
invested balances and interest rates continued to provide good
returns.
SIGNATURES
In accordance with the requirements of the Exchange Act, the
registrant this report to be signed on its behalf by the
undersigned, thereunto duly authorized.
OPT-SCIENCE CORPORATION
Registrant
Date Anderson McCabe, President
Date Harvey Habeck,
Chief Accountant
9
OPT-Sciences Corporation and Subsidiary
CONSOLIDATED BALANCE SHEETS
(Unaudited)
OPT-Sciences Corporation and Subsidiary
CONSOLIDATED STATEMENTS OF INCOME AND RETAINED EARNINGS
(Unaudited)
OPT-Sciences Corporation and Subsidiary
NOTES TO CONDENSED FINANCIAL STATEMENTS
(Unaudited)
