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Previous: CAPSTEAD MORTGAGE CORP, 424B5, 1996-08-06 |
Next: KRUPP CASH PLUS LTD PARTNERSHIP, 10-Q, 1996-08-06 |
<PAGE> 1
U.S. Securities and Exchange Commission
Washington, D.C. 20549
Form 10-QSB
(Mark One)
(X) QUARTERLY REPORT UNDER SECTION 13 OR 15 (d) OF THE SECURITIES
EXCHANGE ACT OF 1934
For the quarterly period ended 6-30-96
( ) TRANSITION REPORT UNDER SECTION 13 OR 15 (d) OF THE EXCHANGE ACT
For the transition period from to
---------- ----------------
Commission file number
--------------------------------------
CVD EQUIPMENT CORPORATION
(Exact name of small business issuer as specified in its charter)
NEW YORK
(State or other jurisdiction of incorporation or organization)
11-2621692
(IRS Employer Identification No.)
1881 LAKELAND AVENUE, RONKONKOMA, N.Y. 11779
(Address of principal executive offices)
516-981-7081
(Issuers telephone number)
(Former name, former address, and former fiscal year,if changed since
last report)
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 12 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
--- ---
APPLICABLE ONLY TO ISSUERS INVOLVED IN BANKRUPTCY
PROCEEDINGS DURING THE PRECEDING FIVE YEARS
Check whether the registrant filed all documents and reports required to be
filed by Section 12, 13, or 15(d) of the Exchange Act after the distribution of
securities under a plan confirmed by a court. Yes No
--- ---
APPLICABLE ONLY TO CORPORATE ISSUERS
State the number of shares outstanding of each of the issuer's classes of common
equity, as of the latest practicable date:
2,918,750 SHARES OF COMMON STOCK,$.01 PAR VALUE AS OF 6-30-96
<PAGE> 2
CVD EQUIPMENT CORP.
BALANCE SHEET
ASSETS
JUNE 30, 1996
<TABLE>
<CAPTION>
JUNE 30
1996
-----------
<S> <C>
CURRENT ASSETS:
CASH $ 116,498
ACCOUNTS RECEIVABLE 218,554
COST IN EXCESS OF BILLINGS 780,997
INVENTORIES 100,285
OTHER CURRENT ASSETS 11,939
-----------
TOTAL CURRENT ASSETS 1,228,273
PROPERTY, PLANT, & EQUIPMENT
at cost & net of accumulated depreciation 890,879
OTHER ASSETS:
LOAN RECEIVABLE-OFFICER 510,605
OTHER 87,252
-----------
TOTAL OTHER ASSETS 597,857
TOTAL ASSETS 2,717,009
===========
</TABLE>
<PAGE> 3
CVD EQUIPMENT CORP.
BALANCE SHEET
LIABILITIES & STOCKHOLDER'S EQUITY
JUNE 30, 1996
<TABLE>
<CAPTION>
JUNE 30
1996
-----------
<S> <C>
CURRENT LIABILITIES:
NOTES PAYABLE $ 0
CURRENT MATURITIES OF LONG TERM DEBT 238,884
ACCOUNTS PAYABLE 332,461
BILLINGS IN EXCESS OF COST 36,378
OTHER CURRENT LIABILITIES (238,380)
-----------
TOTAL CURRENT LIABILITIES 369,343
LONG TERM DEBT 1,232
-----------
TOTAL LIABILITIES 370,575
STOCKHOLDERS EQUITY
COMMON STOCK - $.01 PAR
AUTHORIZED 10,000,000 SHARES
ISSUED & OUTSTANDING 2,918,750 SHARES 29,188
ADDITIONAL PAID-IN CAPITAL 2,784,060
RETAINED EARNINGS (466,814)
-----------
TOTAL EQUITY 2,346,434
TOTAL LIABILITIES & EQUITY 2,717,009
===========
</TABLE>
<PAGE> 4
CVD EQUIPMENT CORP.
STATEMENT OF INCOME & RETAINED EARNINGS
JUNE 30, 1996
<TABLE>
<CAPTION>
THREE MONTHS ENDED
JUNE 30
1996 1995
----------- -----------
<S> <C> <C>
REVENUES
NET SALES $ 405,452 $ 273,227
REVENUE ON UNCOMPLETED CONTRACTS 805,497 271,449
----------- -----------
TOTAL REVENUE 1,210,949 544,676
COST OF GOODS SOLD 732,256 419,123
----------- -----------
GROSS PROFIT 478,693 125,553
OPERATING EXPENSES
SELLING, SHIPPING, & GENERAL ADMINISTRATIVE 163,566 149,886
INTEREST EXPENSE 6,027 18,275
----------- -----------
TOTAL OPERATING EXPENSE 169,593 168,161
OPERATING INCOME (LOSS) 309,100 (42,608)
OTHER INCOME (INCLUDING INTEREST INCOME) 8,657 8,956
----------- -----------
INCOME BEFORE PROVISION FOR TAX 317,757 (33,652)
PROVISION FOR TAX 9,132 0
----------- -----------
NET INCOME (LOSS) 308,625 (33,652)
RETAINED EARNINGS AT BEGINNING (775,439) (1,246,258)
RETAINED EARNINGS AT END (466,814) (1,279,910)
=========== ===========
EARNINGS (LOSS) PER COMMON SHARE 0.11 (0.01)
WEIGHTED AVERAGE NUMBER OF COMMON
SHARES OUTSTANDING 2,918,750 2,918,750
</TABLE>
<PAGE> 5
CVD EQUIPMENT CORP.
STATEMENT OF INCOME & RETAINED EARNINGS
JUNE 30, 1996
<TABLE>
<CAPTION>
SIX MONTHS ENDED
JUNE 30
1996 1995
----------- -----------
<S> <C> <C>
REVENUES
NET SALES $ 833,413 $ 465,922
REVENUE ON UNCOMPLETED CONTRACTS 1,444,415 589,951
----------- -----------
TOTAL REVENUE 2,277,828 1,055,873
COST OF GOODS SOLD 1,369,689 831,721
----------- -----------
GROSS PROFIT 908,139 224,152
OPERATING EXPENSES
SELLING, SHIPPING, & GENERAL ADMINISTRATIVE 412,148 297,669
INTEREST EXPENSE 19,001 34,364
----------- -----------
TOTAL OPERATING EXPENSE 431,149 332,033
OPERATING INCOME (LOSS) 476,990 (107,881)
OTHER INCOME (INCLUDING INTEREST INCOME) 17,221 18,128
----------- -----------
INCOME BEFORE PROVISION FOR TAX 494,211 (89,753)
PROVISION FOR TAX 9,132 0
----------- -----------
NET INCOME (LOSS) 485,079 (89,753)
RETAINED EARNINGS AT BEGINNING (951,893) (1,190,157)
RETAINED EARNINGS AT END (466,814) (1,279,910)
=========== ===========
EARNINGS (LOSS) PER COMMON SHARE 0.17 (0.03)
WEIGHTED AVERAGE NUMBER OF COMMON
SHARES OUTSTANDING 2,918,750 2,918,750
</TABLE>
<PAGE> 6
CVD EQUIPMENT CORP.
STATEMENT OF CASH FLOWS
JUNE 30, 1996
<TABLE>
<CAPTION>
THREE MONTHS ENDED
JUNE 30
1996 1995
--------- ----------
<S> <C> <C>
CASH FLOWS FROM ACTIVITIES
NET INCOME (LOSS) $ 308,624 ($ 33,652)
DEPRECIATION 65,575 83,464
DECREASE IN:
ACCOUNTS RECEIVABLES (86,478) 11,709
COST IN EXCESS OF BILLINGS 120,111 68,888
INVENTORIES 20,312 12,656
OTH CURRENT ASSETS 5,628 6,074
OTHER ASSETS 11,304 (7,265)
INCREASE IN:
ACCOUNTS PAYABLE 136,392 (119)
BILLINGS IN EXCESS OF COST (87,211) (44,518)
OTH CURRENT LIABILITIES (294,279) (14,174)
--------- ---------
TOTAL ADJUSTMENTS (108,646) 116,715
NET CASH FROM OPERATIONS 199,978 83,063
CASH FLOWS FOR INVESTMENTS
LOAN RECEIVABLES-OFFICER (INCREASE) (7,786) (8,417)
CAPITAL EXPENDITURES (40,591) (24,106)
--------- ---------
NET CASH USED FOR INVESTMENTS (48,377) (32,523)
CASH FLOWS FROM FINANCINGS
INCREASE IN:
NOTES PAYABLE 0 0
DEBT-CURRENT (147,200) 65,314
DEBT-LONG TERM (1,818) (76,681)
--------- ---------
NET CASH PROVIDED BY FINANCINGS (149,018) (11,367)
--------- ---------
NET INCREASE IN CASH 2,583 39,173
CASH BEGINNING OF PERIOD 113,915 78,074
CASH END OF PERIOD 116,498 117,247
========= =========
</TABLE>
<PAGE> 7
CVD EQUIPMENT CORP.
STATEMENT OF CASH FLOWS
JUNE 30, 1996
<TABLE>
<CAPTION>
SIX MONTHS ENDED
JUNE 30
1996 1995
---- ----
<S> <C> <C>
CASH FLOWS FROM ACTIVITIES
NET INCOME (LOSS) $ 485,079 ($ 89,753)
DEPRECIATION 129,942 169,605
DECREASE IN:
ACCOUNTS RECEIVABLE 107,301 94,762
COST IN EXCESS OF BILLINGS 44,618 128,195
INVENTORIES 60,312 27,009
OTH CURRENT ASSETS 7,493 8,156
OTHER ASSETS 17,822 (20,192)
INCREASE IN:
ACCOUNTS PAYABLE 164,249 1,258
BILLINGS IN EXCESS OF COST (106,314) (98,695)
OTH CURRENT LIABILITIES (493,803) (28,141)
--------- ---------
TOTAL ADJUSTMENTS (68,380) 281,957
NET CASH FROM OPERATIONS 416,699 192,204
CASH FLOWS FOR INVESTMENTS
LOAN RECEIVABLES -- OFFICER (INCREASE) (15,671) (21,985)
CAPITAL EXPENDITURES (60,326) (54,349)
--------- ---------
NET CASH USED FOR INVESTMENTS (75,997) (76,334)
CASH FLOWS FROM FINANCINGS
INCREASE IN:
NOTES PAYABLE 0 (35,000)
DEBT -- CURRENT (461,446) 130,625
DEBT -- LONG TERM (3,600) (153,328)
--------- ---------
NET CASH PROVIDED BY FINANCINGS (465,046) (57,703)
NET INCREASE IN CASH (124,344) 58,167
CASH BEGINNING OF PERIOD 240,842 59,080
CASH END OF PERIOD 116,498 117,247
========= =========
</TABLE>
<PAGE> 8
CVD EQUIPMENT CORPORATION
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 1996
1. BASIS OF FINANCIAL STATEMENTS
The financial data is subject to year end audit and does not claim to
be a complete presentation since note disclosure under generally accepted
accounting procedures is not included. Note disclosures required under generally
accepted accounting procedures are included in the Company's audited financial
statements filed as part of Form 10-KSB for the year ended December 31, 1995.
Form 10-QSB should be read in conjunction with these financial statements.
The results of operations for the three months are not necessarily
indicative of those for the full year. In the opinion of management, the
accompanying unaudited financial statements contain all adjustments necessary to
fairly present the financial position and the results of operation for the
periods indicated.
2. RESULTS OF OPERATIONS THREE MONTHS ENDED JUNE 30, 1996
Revenue for the second quarter of 1996 was $1,210,948 which was more
than 100% greater than the second quarter of 1995. Revenue also improved over
the first quarter of 1996 by $144,069 or 14%. Revenue for the first six months
is approximately $2.3 million versus $2.6 million for the entire year 1995.
Gross profits remained consistent with the first quarter at 40% versus 23% in
the comparable period one year ago. A substantial portion of sales continues
from one customer though the backlog at the end of June is still $3.3 million.
Without the extraordinary expenses detailed in the first quarter,
Selling and G & A expense went down as a percentage of sales. This was
accomplished despite added personnel to strengthen sales and operational
control. Selling and G & A were actually $7,000 less in the second quarter even
though sales increased $144,069.
Interest expense has been reduced again as another payment to BNL has
brought our loan balance down to $231,000. Interest expense in the second
quarter was less than half the first quarter and should be lower still in the
third quarter.
Liquidity
Despite the profitable results for the quarter, cash flow was flat as $147,200
was paid to reduce CVD's debt obligation with BNL.
<PAGE> 9
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the
Registrant has duly caused this report to be signed on its behalf by the
undersigned thereunto duly authorized.
CVD EQUIPMENT CORPORATION
(Registrant)
/s/ Leonard A. Rosenbaum
-------------------------
Leonard A. Rosenbaum
President, CEO
/s/ Joseph Saccardi
-------------------------
Joseph Saccardi
Chief Financial Officer
Date: August 1, 1996
<PAGE> 10
EXHIBIT INDEX
EXHIBIT NO. DESCRIPTION
27 FINANCIAL DATA SCHEDULE
<TABLE> <S> <C>
<ARTICLE> 5
<S> <C>
<PERIOD-TYPE> 6-MOS
<FISCAL-YEAR-END> DEC-31-1996
<PERIOD-START> JAN-01-1996
<PERIOD-END> JUN-30-1996
<CASH> 116498
<SECURITIES> 0
<RECEIVABLES> 999551
<ALLOWANCES> 0
<INVENTORY> 100285
<CURRENT-ASSETS> 1228273
<PP&E> 3858885
<DEPRECIATION> 2968006
<TOTAL-ASSETS> 2717009
<CURRENT-LIABILITIES> 369575
<BONDS> 0
0
0
<COMMON> 2813248
<OTHER-SE> (466814)
<TOTAL-LIABILITY-AND-EQUITY> 2717009
<SALES> 833413
<TOTAL-REVENUES> 2277828
<CGS> 1369689
<TOTAL-COSTS> 0
<OTHER-EXPENSES> 412148
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 19001
<INCOME-PRETAX> 494211
<INCOME-TAX> 9132
<INCOME-CONTINUING> 0
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 485079
<EPS-PRIMARY> .17
<EPS-DILUTED> .00
</TABLE>
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