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 April 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 April 29, 2000
Common Stock, par value $0.25 775,441 shares
INDEX
PART I FINANCIAL INFORMATION
Item 1. Financial Statements
Consolidated Balance Sheets - April 29,
2000 and October 30, 1999 3
Consolidated Statements of Income -
thirteen weeks ended April 29, 2000 and
May 1, 1999 and twenty-six weeks
ended April 29, 2000 and May 1, 1999 5
Consolidated Statements of Cash Flows -
twenty-six weeks ended April 29, 2000 and
May 1, 1999 6
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
April 29, October 30,
2000 1999
CURRENT ASSETS
Cash and cash equivalents $ 4,320,857 $ 4,308,767
Trade accounts receivable 569,695 573,215
Inventories 410,564 487,793
Prepaid expenses 9,232 25,111
Prepaid income tax 193,599 184,106
Marketable securities 453,939 497,184
Total current assets 5,957,886 6,076,176
PROPERTY AND EQUIPMENT
Land 114,006 114,006
Building and improvements 346,571 346,571
Machinery and equipment 865,205 830,027
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 1,480,670 1,432,833
Less: accumulated depreciation 911,749 875,156
Net property and
equipment 568,921 557,677
Total assets $ 6,526,807 $ 6,633,853
OPT-Sciences Corporation and Subsidiary
CONSOLIDATED BALANCE SHEETS
(Unaudited)
LIABILITIES AND STOCKHOLDERS' EQUITY
April 29, October 30,
2000 1999
CURRENT LIABILITIES
Accounts payable - trade $ 89,462 $ 42,048
Other current liabilities 81,997 261,209
Total current liabilities 171,459 303,257
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 6,073,184 6,004,651
Accumulated other comprehensive income:
Unrealized holding (loss)
on marketable securities (52,757) (9,512)
Less treasury stock at cost -
224,559 shares (187,774) (187,238)
Total stockholders' equity 6,355,348 6,330,596
Total liabilities and
stockholders' equity $ 6,526,807 $ 6,633,853
OPT-Sciences Corporation and Subsidiary
CONSOLIDATED STATEMENTS OF INCOME AND RETAINED EARNINGS
(Unaudited)
Thirteen Thirteen Twenty-Six Twenty-Six
Weeks Ended Weeks Ended Weeks Ended Weeks Ended
April 29, 2000 May 1, 1999 April 29, 2000 May 1, 1999
NET SALES $ 834,309 $ 1,060,628 $ 1,502,329 $ 1,944,804
COST OF SALES 643,365 630,105 1,262,125 1,222,249
Gross profit
on sales 190,944 430,523 240,204 722,555
OPERATING EXPENSES
Sales & delivery 25,623 7,889 37,416 15,468
General and
administrative 118,924 123,990 232,909 261,464
Total operating
expenses 144,547 131,879 270,325 276,932
Operating income
(loss) 46,397 298,644 (30,121) 445,623
OTHER INCOME 62,194 52,600 133,654 108,295
Net income before
taxes 108,591 351,244 103,533 553,918
FEDERAL AND STATE
INCOME TAXES 35,000 140,287 35,000 221,235
Net income 73,591 210,957 68,533 332,683
RETAINED EARNINGS -
beginning
of period 5,999,593 5,376,358 6,004,651 5,254,632
RETAINED EARNINGS -
end of
period $ 6,073,184 $ 5,587,315 $ 6,073,184 $ 5,587,315
EARNINGS PER SHARE OF
COMMON STOCK 0.09 0.27 0.09 0.43
Average shares of
stock
outstanding 775,508 775,585 775,541 775,585
OPT-Sciences Corporation and Subsidiary
CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited)
Twenty-Six Twenty-Six
Weeks Ended Weeks Ended
April 29, 2000 May 1, 1999
CASH FLOWS FROM OPERATING ACTIVITIES
Net income $ 68,533 $ 332,683
Adjustments to reconcile net income to net
cash provided by operating activities:
Depreciation and amortization 36,593 37,788
Decrease (increase) in:
Accounts receivable 3,520 (162,186)
Inventories 77,229 12,005
Prepaid expenses 15,879 (3,383)
Prepaid income taxes (9,493) (120,180)
(Decrease) increase in:
Accounts payable 47,414 4,903
Accrued income taxes -0- (241,599)
Other current liabilities (179,212) (216,491)
Net cash (used) provided
by operating activities 60,463 (356,460)
CASH FLOWS FROM INVESTING ACTIVITIES
Additions to property and equipment (47,837) (5,406)
Purchases of securities -0- (25,000)
Net cash (used)
by investing activities (47,837) (30,406)
CASH FLOWS FROM FINANCING ACTIVITIES
Purchases of treasury stock (536) -0-
Net cash (used) by
financing activities (536) -0-
Increase (decrease) in cash 12,090 (386,866)
Cash and cash equivalents
at beginning of year 4,308,767 4,190,509
Cash and cash equivalents
at end of year $ 4,320,857 $ 3,803,643
SUPPLEMENTAL DISCLOSURES:
Interest paid $ -0- $ -0-
Income taxes paid $ 44,493 $ 582,889
OPT-Sciences Corporation and Subsidiary
NOTES TO CONDENSED FINANCIAL STATEMENTS
(Unaudited)
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 April 29, 2000 and October 30, 1999, and the results of
operations for the twenty-six weeks ended April 29, 2000 and May 1,
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 twenty-six weeks of the year from $4,308,767 to
$4,320,857. Profits generated coupled with decreases in accounts
receivable and inventory offset asset purchases and the payment of
current and estimated corporate income taxes. 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
Second quarter sales decreased by approximately 22% from the same
period last year. This is due primarily to order cut-backs from
several major customers and is attributable to general business
conditions. There was a significant drop in gross profit due to the
sales decrease, which causes the Company to produce at less than
capacity.
Earnings from investments increased 19% 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
