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Previous: DEFINED ASSET FUNDS MUNICIPAL INVT TR FD MULTISTATE SER 1G, 24F-2TM, 1996-10-30 |
Next: ADVANCED DIGITAL INFORMATION CORP, S-8, 1996-10-30 |
<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 9-30-96
( ) 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 9-30-96
<PAGE> 2
CVD EQUIPMENT CORP.
BALANCE SHEET
ASSETS
SEPTEMBER 30, 1996
<TABLE>
<CAPTION>
SEPTEMBER 30
1996
------------
<S> <C>
CURRENT ASSETS:
CASH $ 133,880
ACCOUNTS RECEIVABLE 523,520
COST IN EXCESS OF BILLINGS 754,638
INVENTORIES 60,285
OTHER CURRENT ASSETS 36,162
----------
TOTAL CURRENT ASSETS 1,508,485
PROPERTY, PLANT, & EQUIPMENT
at cost & net of accumulated depreciation 849,297
OTHER ASSETS:
LOAN RECEIVABLE-OFFICER 518,477
OTHER 78,249
----------
TOTAL OTHER ASSETS 596,726
TOTAL ASSETS 2,954,508
==========
</TABLE>
<PAGE> 3
CVD EQUIPMENT CORP.
BALANCE SHEET
LIABILITIES & STOCKHOLDER'S EQUITY
SEPTEMBER 30, 1996
<TABLE>
<CAPTION>
SEPTEMBER 30
1996
------------
<S> <C>
CURRENT LIABILITIES:
NOTES PAYABLE $ 0
CURRENT MATURITIES OF LONG TERM DEBT 188,403
ACCOUNTS PAYABLE 149,630
BILLINGS IN EXCESS OF COST 65,191
OTHER CURRENT LIABILITIES (139,745)
-----------
TOTAL CURRENT LIABILITIES 263,479
LONG TERM DEBT 0
-----------
TOTAL LIABILITIES 263,479
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 (122,219)
-----------
TOTAL EQUITY 2,691,029
TOTAL LIABILITIES & EQUITY 2,954,508
===========
</TABLE>
<PAGE> 4
CVD EQUIPMENT CORP.
STATEMENT OF INCOME & RETAINED EARNINGS
SEPTEMBER 30, 1996
<TABLE>
<CAPTION>
THREE MONTHS ENDED
SEPTEMBER 30
1996 1995
----------- -----------
<S> <C> <C>
REVENUES
NET SALES $ 299,598 $ 103,540
REVENUE ON UNCOMPLETED CONTRACTS 1,045,509 406,976
----------- -----------
TOTAL REVENUE 1,345,107 510,516
COST OF GOODS SOLD 753,178 428,689
----------- -----------
GROSS PROFIT 591,929 81,827
OPERATING EXPENSES
SELLING, SHIPPING, & GENERAL ADMINISTRATIVE 201,641 158,419
INTEREST EXPENSE 4,554 15,652
----------- -----------
TOTAL OPERATING EXPENSE 206,195 174,071
OPERATING INCOME (LOSS) 385,734 (92,244)
OTHER INCOME (INCLUDING INTEREST INCOME) 8,449 8,441
----------- -----------
INCOME BEFORE PROVISION FOR TAX 394,183 (83,803)
PROVISION FOR TAX 49,588 0
----------- -----------
NET INCOME (LOSS) 344,595 (83,803)
RETAINED EARNINGS AT BEGINNING (466,814) (1,279,910)
RETAINED EARNINGS AT END (122,219) (1,363,713)
=========== ===========
EARNINGS (LOSS) PER COMMON SHARE 0.12 (0.03)
WEIGHTED AVERAGE NUMBER OF COMMON
SHARES OUTSTANDING 2,918,750 2,918,750
</TABLE>
<PAGE> 5
CVD EQUIPMENT CORP.
STATEMENT OF INCOME & RETAINED EARNINGS
SEPTEMBER 30, 1996
<TABLE>
<CAPTION>
NINE MONTHS ENDED
SEPTEMBER 30
1996 1995
----------- -----------
<S> <C> <C>
REVENUES
NET SALES $ 1,133,011 $ 569,462
REVENUE ON UNCOMPLETED CONTRACTS 2,489,924 996,927
----------- -----------
TOTAL REVENUE 3,622,935 1,566,389
COST OF GOODS SOLD 2,122,867 1,260,410
----------- -----------
GROSS PROFIT 1,500,068 305,979
OPERATING EXPENSES
SELLING, SHIPPING, & GENERAL ADMINISTRATIVE 613,789 456,088
INTEREST EXPENSE 23,555 50,016
----------- -----------
TOTAL OPERATING EXPENSE 637,344 506,104
OPERATING INCOME (LOSS) 862,724 (200,125)
OTHER INCOME (INCLUDING INTEREST INCOME) 25,670 26,569
----------- -----------
INCOME BEFORE PROVISION FOR TAX 888,394 (173,556)
PROVISION FOR TAX 58,720 0
----------- -----------
NET INCOME (LOSS) 829,674 (173,556)
RETAINED EARNINGS AT BEGINNING (951,893) (1,190,157)
RETAINED EARNINGS AT END (122,219) (1,363,713)
=========== ===========
EARNINGS (LOSS) PER COMMON SHARE 0.28 (0.06)
WEIGHTED AVERAGE NUMBER OF COMMON
SHARES OUTSTANDING 2,918,750 2,918,750
</TABLE>
<PAGE> 6
CVD EQUIPMENT CORP.
STATEMENT OF CASH FLOWS
SEPTEMBER 30, 1996
<TABLE>
<CAPTION>
THREE MONTHS ENDED
SEPTEMBER 30
1996 1995
--------- ---------
<S> <C> <C>
CASH FLOWS FROM ACTIVITIES
NET INCOME (LOSS) $ 344,595 ($ 83,803)
DEPRECIATION 63,391 84,779
DECREASE IN:
ACCOUNTS RECEIVABLES (304,966) (94,204)
COST IN EXCESS OF BILLINGS 26,359 (153,431)
INVENTORIES 40,000 13,655
OTH CURRENT ASSETS (24,224) 8,684
OTHER ASSETS 9,002 18,127
INCREASE IN:
ACCOUNTS PAYABLE (182,831) (13,792)
BILLINGS IN EXCESS OF COST 28,813 2,880
OTH CURRENT LIABILITIES 98,638 137,252
--------- ---------
TOTAL ADJUSTMENTS (245,818) 3,950
NET CASH FROM OPERATIONS 98,777 (79,853)
CASH FLOWS FOR INVESTMENTS
LOAN RECEIVABLES-OFFICER (INCREASE) (7,872) (8,319)
CAPITAL EXPENDITURES (21,809) (23,461)
--------- ---------
NET CASH USED FOR INVESTMENTS (29,681) (31,780)
CASH FLOWS FROM FINANCINGS
INCREASE IN:
NOTES PAYABLE 0 0
DEBT-CURRENT (50,482) 75,719
DEBT-LONG TERM (1,232) (77,292)
--------- ---------
NET CASH PROVIDED BY FINANCINGS (51,714) (1,573)
--------- ---------
NET INCREASE IN CASH 17,382 (113,206)
CASH BEGINNING OF PERIOD 116,498 117,247
CASH END OF PERIOD 133,880 4,041
========= =========
</TABLE>
<PAGE> 7
CVD EQUIPMENT CORP.
STATEMENT OF CASH FLOWS
SEPTEMBER 30, 1996
<TABLE>
<CAPTION>
NINE MONTHS ENDED
SEPTEMBER 30
1996 1995
--------- ---------
<S> <C> <C>
CASH FLOWS FROM ACTIVITIES
NET INCOME (LOSS) $ 829,674 ($173,556)
DEPRECIATION 193,333 254,384
DECREASE IN:
ACCOUNTS RECEIVABLE (197,665) 558
COST IN EXCESS OF BILLINGS 70,977 (25,236)
INVENTORIES 100,312 40,664
OTH CURRENT ASSETS (16,731) 16,840
OTHER ASSETS 26,824 (2,065)
INCREASE IN:
ACCOUNTS PAYABLE (18,582) (12,534)
BILLINGS IN EXCESS OF COST (77,501) (95,815)
OTH CURRENT LIABILITIES (395,166) 109,111
--------- ---------
TOTAL ADJUSTMENTS (314,199) 285,907
NET CASH FROM OPERATIONS 515,475 112,351
CASH FLOWS FOR INVESTMENTS
LOAN RECEIVABLES-OFFICER (INCREASE) (23,543) (30,304)
CAPITAL EXPENDITURES (82,135) (77,810)
--------- ---------
NET CASH USED FOR INVESTMENTS (105,678) (108,114)
CASH FLOWS FROM FINANCINGS
INCREASE IN:
NOTES PAYABLE 0 (35,000)
DEBT-CURRENT (511,928) 206,344
DEBT-LONG TERM (4,832) (230,620)
--------- ---------
NET CASH PROVIDED BY FINANCINGS (516,760) (59,276)
NET INCREASE IN CASH (106,963) (55,039)
CASH BEGINNING OF PERIOD 240,843 59,080
CASH END OF PERIOD 133,880 4,041
========= =========
</TABLE>
<PAGE> 8
CVD EQUIPMENT CORPORATION
NOTES TO FINANCIAL STATEMENTS
SEPTEMBER 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
unaccompanying 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 SEPTEMBER 30, 1996
Revenue for the third quarter of 1996 was $1,345,108. This was more
than 2.5 times the level in the third quarter of 1995. Revenue for the third
quarter also exceeded that of the second quarter by $134,160 or 11%. Third
quarter results bring revenue for the nine months to $3.6 million versus $2.6
million for the entire year of 1995. A substantial portion of revenue was
attributable to one customer, but the company backlog remains strong at $3.5
million.
Gross profit improved to 44% of sales in the third quarter from 40% in
the first two quarters of 1996. Selling and G & A expense in the third quarter
remained comparable to the first two quarters despite a steady increase in
revenues and a 5% increase in payroll expense. Interest expense was down once
again as another $50,000 was paid toward the balance with BNL. At the close of
the third quarter, the outstanding balance was $181,000. Subsequent to the close
of the quarter, another $31,000 was paid bringing the balance to $150,000.
Liquidity
The profitable results for the quarter were enough to compensate for
the $50,000 paid toward debt reduction. Despite this, CVD's cash position
increased by $17,382 for the quarter.
<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)
-------------------------
Leonard A. Rosenbaum
President, CEO
-------------------------
Joseph Saccardi
Chief Financial Officer
Date: October 24, 1996
<PAGE> 10
EXHIBIT INDEX
EXHIBIT NO. DESCRIPTION
27 FINANCIAL DATA SCHEDULE
<TABLE> <S> <C>
<ARTICLE> 5
<S> <C>
<PERIOD-TYPE> 9-MOS
<FISCAL-YEAR-END> DEC-31-1996
<PERIOD-START> JAN-01-1996
<PERIOD-END> SEP-30-1996
<CASH> 133,880
<SECURITIES> 0
<RECEIVABLES> 1,278,158
<ALLOWANCES> 0
<INVENTORY> 60,285
<CURRENT-ASSETS> 1,508,486
<PP&E> 3,880,692
<DEPRECIATION> 3,031,397
<TOTAL-ASSETS> 2,954,508
<CURRENT-LIABILITIES> 263,479
<BONDS> 0
0
0
<COMMON> 2,813,248
<OTHER-SE> (122,218)
<TOTAL-LIABILITY-AND-EQUITY> 2,954,508
<SALES> 1,133,011
<TOTAL-REVENUES> 3,622,935
<CGS> 2,122,867
<TOTAL-COSTS> 0
<OTHER-EXPENSES> 618,632
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 23,555
<INCOME-PRETAX> 888,394
<INCOME-TAX> 58,720
<INCOME-CONTINUING> 0
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 829,674
<EPS-PRIMARY> .28
<EPS-DILUTED> 0
</TABLE>
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