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 July 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 July 29, 2000
Common Stock, par value $0.25 775,441 shares
INDEX
PART I FINANCIAL INFORMATION
Item 1. Financial Statements
Consolidated Balance Sheets - July 29,
2000 and October 30, 1999 3
Consolidated Statements of Income -
thirteen weeks ended July 29, 2000 and
July 31, 1999 and thirty-nine weeks
ended July 29, 2000 and July 31, 1999 5
Consolidated Statements of Cash Flows -
thirty-nine weeks ended July 29, 2000 and
July 31, 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
July 29, October 30,
2000 1999
CURRENT ASSETS
Cash and cash equivalents $ 4,161,269 $ 4,308,767
Trade accounts receivable 690,429 573,215
Inventories 408,897 487,793
Prepaid expenses 9,608 25,111
Prepaid income tax 170,257 184,106
Marketable securities 716,185 497,184
Total current assets 6,156,645 6,076,176
PROPERTY AND EQUIPMENT
Land 114,006 114,006
Building and improvements 346,571 346,571
Machinery and equipment 873,259 830,027
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 1,488,724 1,432,833
Less: accumulated depreciation 929,704 875,156
Net property and equipment 559,020 557,677
Total assets $ 6,715,665 $ 6,633,853
OPT-Sciences Corporation and Subsidiary
CONSOLIDATED BALANCE SHEETS
(Unaudited)
LIABILITIES AND STOCKHOLDERS' EQUITY
July 29, October 30,
2000 1999
CURRENT LIABILITIES
Accounts payable - trade $ 6,245 $ 42,048
Other current liabilities 91,728 261,209
Total current liabilities 157,973 303,257
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 6,251,117 6,004,651
Accumulated other comprehensive income:
Unrealized holding (loss)
on marketable securities (28,346) (9,512)
Less treasury stock at cost -
224,559 shares (187,774) (187,238)
Total stockholders' equity 6,557,692 6,330,596
Total liabilities and
stockholders' equity $ 6,715,665 $ 6,633,853
OPT-Sciences Corporation and Subsidiary
CONSOLIDATED STATEMENTS OF INCOME AND RETAINED EARNINGS
(Unaudited)
Thirteen Weeks Thirteen Weeks Thirty-nine Thirty-nine
Ended Ended Weeks Ended Weeks Ended
July 29, 2000 July 31, 1999 July 29, 2000 July 31, 1999
NET SALES $ 977,916 $ 1,079,148 $ 2,480,245 $ 3,023,952
COST OF SALES 604,618 606,313 1,866,743 1,828,562
Gross profit on sales 373,298 472,835 613,502 1,195,390
OPERATING EXPENSES
Sales & delivery 16,903 7,652 54,319 23,120
General and
administrative 109,629 131,620 342,538 393,084
Total operating
expenses 126,532 139,272 396,857 416,204
Operating
income (loss) 246,766 333,563 216,645 779,186
OTHER INCOME 60,067 54,132 193,721 162,427
Net income
before taxes 306,833 387,695 410,366 941,613
FEDERAL AND STATE
INCOME TAXES 128,900 154,845 163,900 376,080
Net income 177,933 232,850 246,466 565,533
RETAINED EARNINGS -
beginning
of period 6,073,184 5,587,315 6,004,651 5,254,632
RETAINED EARNINGS -
end of period $ 6,251,117 $ 5,820,165 $ 6,251,117 $ 5,820,165
EARNINGS PER SHARE OF
COMMON STOCK 0.23 0.30 0.32 0.73
Average shares of
stock outstanding 775,441 775,548 775,508 775,573
OPT-Sciences Corporation and Subsidiary
CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited)
Thirty-nine Weeks Thirty-nine Weeks
Ended Ended
July 29, 2000 July 31, 1999
CASH FLOWS FROM OPERATING ACTIVITIES
Net income $ 246,466 $ 565,533
Adjustments to reconcile
net income to net
cash provided by operating
activities:
Depreciation and amortization 54,548 55,944
Decrease (increase) in:
Accounts receivable (117,214) (63,380)
Inventories 78,896 16,016
Prepaid expenses 15,503 1,015
Prepaid income taxes 13,849 (131,511)
(Decrease) increase in:
Accounts payable 24,197 39,080
Accrued income taxes -0- (241,599)
Other current liabilities (169,481) (191,442)
Net cash provided
by operating activities $ 146,764 $ 49,656
CASH FLOWS FROM INVESTING ACTIVITIES
Additions to property
and equipment (55,891) (54,407)
Purchases of securities (237,835) (25,000)
Net cash (used)
by investing activities $ (293,726) $ (79,407)
OPT-Sciences Corporation and Subsidiary
CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited)
Thirty-nine Weeks Thirty-nine Weeks
Ended Ended
July 29, 2000 July 31, 1999
CASH FLOWS FROM
FINANCING ACTIVITIES
Purchases of treasury stock $ (536) $ (550)
Net cash (used) by
financing activities 536 (550)
(Decrease) in cash (147,498) (30,301)
Cash and cash equivalents
at beginning of year 4,308,767 4,190,509
Cash and cash equivalents
at end of period $ 4,161,269 $ 4,160,208
SUPPLEMENTAL DISCLOSURES:
Interest paid $ -0- $ -0-
Income taxes paid $ 102,233 $ 749,065
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 July 29, 2000 and October
30, 1999, and the results of operations for the thirty-nine weeks ended
July 29, 2000 and July 31, 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 decreased
during the thirty-nine weeks of the year from $4,308,767 to $4,161,269.
Profits generated were offset by increases in accounts receivable, decreases
in accounts payable and purchases of fixed assets and investments. 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
Third quarter sales decreased by approximately 9% 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 11% 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
