<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 3-31-97
( ) TRANSITION REPORT UNDER SECTION 13 OR 15 (d) OF THE EXCHANGE ACT
For the transition period from to
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Commission file number
-------------------------------
CVD EQUIPMENT CORPORATION
- --------------------------------------------------------------------------------
(Exact name of small business issuer as specified in its charter)
NEW YORK
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(State or other jurisdiction of incorporation or organization)
11-2621692
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(IRS Employer Identification No.)
1881 LAKELAND AVENUE, RONKONKOMA, N.Y. 11779
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(Address of principal executive offices)
516-981-7081
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(Issuers telephone number)
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(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 3-31-97
<PAGE> 2
CVD EQUIPMENT CORP.
BALANCE SHEET
ASSETS
MARCH 31, 1997
<TABLE>
<CAPTION>
MARCH 31
1997
----------
<S> <C>
CURRENT ASSETS:
CASH $ 180,543
ACCOUNTS RECEIVABLE 494,954
COST IN EXCESS OF BILLINGS 1,367,642
INVENTORIES 83,377
DEFERRED TAX 67,736
OTHER CURRENT ASSETS 23,286
----------
TOTAL CURRENT ASSETS 2,217,538
PROPERTY, PLANT, & EQUIPMENT
at cost & net of accumulated depreciation 806,289
OTHER ASSETS:
LOAN RECEIVABLE-OFFICER 505,740
OTHER 63,967
----------
TOTAL OTHER ASSETS 569,707
TOTAL ASSETS 3,593,534
==========
</TABLE>
<PAGE> 3
CVD EQUIPMENT CORP.
BALANCE SHEET
LIABILITIES & STOCKHOLDER'S EQUITY
MARCH 31, 1997
<TABLE>
<CAPTION>
MARCH 31
1997
----------
<S> <C>
CURRENT LIABILITIES:
NOTES PAYABLE $ 0
CURRENT MATURITIES OF LONG TERM DEBT 98,311
ACCOUNTS PAYABLE 157,341
BILLINGS IN EXCESS OF COST 18,144
OTHER CURRENT LIABILITIES 117,530
----------
TOTAL CURRENT LIABILITIES 391,326
LONG TERM DEBT 0
----------
TOTAL LIABILITIES 391,326
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 388,960
----------
TOTAL EQUITY 3,202,208
TOTAL LIABILITIES & EQUITY 3,593,534
==========
</TABLE>
<PAGE> 4
CVD EQUIPMENT CORP.
STATEMENT OF INCOME & RETAINED EARNINGS
MARCH 31, 1997
<TABLE>
<CAPTION>
THREE MONTHS ENDED
MARCH 31
1997 1996
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<S> <C> <C>
REVENUES
NET SALES $ 83,967 $ 427,961
REVENUE ON UNCOMPLETED CONTRACTS 1,022,864 638,918
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TOTAL REVENUE 1,106,831 1,066,879
COST OF GOODS SOLD 705,065 637,433
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GROSS PROFIT 401,766 429,446
OPERATING EXPENSES
SELLING, SHIPPING, & GENERAL ADMINISTRATIVE 203,565 248,582
INTEREST EXPENSE 2,776 12,974
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TOTAL OPERATING EXPENSE 206,341 261,556
OPERATING INCOME (LOSS) 195,425 167,890
OTHER INCOME (INCLUDING INTEREST INCOME) 10,840 8,564
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INCOME BEFORE PROVISION FOR TAX 206,265 176,454
PROVISION FOR TAX 550 0
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NET INCOME (LOSS) 205,715 176,454
RETAINED EARNINGS AT BEGINNING 183,245 (951,893)
RETAINED EARNINGS AT END 388,960 (775,439)
========== ==========
EARNINGS (LOSS) PER COMMON SHARE 0.07 0.06
WEIGHTED AVERAGE NUMBER OF COMMON
SHARES OUTSTANDING 2,918,750 2,918,750
</TABLE>
<PAGE> 5
CVD EQUIPMENT CORP.
STATEMENT OF CASH FLOWS
MARCH 31, 1997
<TABLE>
<CAPTION>
THREE MONTHS ENDED
MARCH 31
1997 1996
--------- ---------
<S> <C> <C>
CASH FLOWS FROM ACTIVITIES
NET INCOME (LOSS) $ 205,715 $ 176,454
DEPRECIATION 31,295 64,367
DECREASE IN:
ACCOUNTS RECEIVABLES 121,064 193,779
COST IN EXCESS OF BILLINGS (102,822) (94,596)
INVENTORIES (43,618) 40,000
OTH CURRENT ASSETS (4,541) 1,865
OTHER ASSETS 1,566 6,517
INCREASE IN:
ACCOUNTS PAYABLE 37,178 27,857
BILLINGS IN EXCESS OF COST (22,946) 0
OTH CURRENT LIABILITIES (56,055) (199,522)
--------- ---------
TOTAL ADJUSTMENTS (38,879) 40,267
NET CASH FROM OPERATIONS 166,836 216,721
CASH FLOWS FOR INVESTMENTS
LOAN RECEIVABLES-OFFICER (5,740) (7,885)
CAPITAL EXPENDITURES (10,381) (19,735)
--------- ---------
NET CASH USED FOR INVESTMENTS (16,121) (27,620)
CASH FLOWS FROM FINANCINGS
INCREASE IN:
NOTES PAYABLE 0 0
DEBT-CURRENT (37,384) (314,246)
DEBT-LONG TERM 0 (1,782)
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NET CASH PROVIDED BY FINANCINGS (37,384) (316,028)
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NET INCREASE IN CASH 113,331 (126,927)
CASH BEGINNING OF PERIOD 67,212 240,842
CASH END OF PERIOD 180,543 113,915
========= =========
</TABLE>
<PAGE> 6
CVD EQUIPMENT CORPORATION
NOTES TO FINANCIAL STATEMENTS
MARCH 31, 1997
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, 1996.
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 MARCH 31, 1997
Revenue for the first quarter of 1997 was $1,107,000. This is an increase of
3.7% when compared to the first quarter of 1996. At the end of the first
quarter, CVD's backlog remains strong at $3.1 million. Gross profit for the
first quarter is 36% versus 40% in the comparable period one year ago. A
substantial portion of the increase in cost of goods sold is payroll expense.
Selling and G & A expense is lower than the comparable period in 1996. For 1997,
there was $204,000 booked to these accounts versus $249,000 in 1996. Of this
$45,000 decrease, $21,000 is attributed to the legal settlement and $63,000 to a
reserve set up against a cancelled naval project which is offset by an increase
of $38,000 in payroll expense.
Interest expense is down again as another $35,000 was paid toward the balance
with BNL. At the close of the first quarter, the outstanding balance was
$95,000. Subsequent to the close of the quarter, another $20,000 was paid,
bringing the balance to $75,000.
Liquidity
The profitable results for the quarter were enough to compensate for the $37,000
paid toward debt reduction. CVD's cash position increased by $113,000 for this
comparable quarter.
<PAGE> 7
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
Date: April 30, 1997
<TABLE> <S> <C>
<ARTICLE> 5
<S> <C>
<PERIOD-TYPE> 3-MOS
<FISCAL-YEAR-END> DEC-31-1997
<PERIOD-START> JAN-01-1997
<PERIOD-END> MAR-31-1997
<CASH> 180,543
<SECURITIES> 0
<RECEIVABLES> 1,862,596
<ALLOWANCES> 0
<INVENTORY> 83,377
<CURRENT-ASSETS> 2,217,538
<PP&E> 2,763,704
<DEPRECIATION> 1,957,415
<TOTAL-ASSETS> 3,593,534
<CURRENT-LIABILITIES> 391,326
<BONDS> 0
0
0
<COMMON> 2,813,248
<OTHER-SE> 388,960
<TOTAL-LIABILITY-AND-EQUITY> 3,593,534
<SALES> 83,967
<TOTAL-REVENUES> 1,106,831
<CGS> 705,065
<TOTAL-COSTS> 0
<OTHER-EXPENSES> 203,565
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 2,776
<INCOME-PRETAX> 206,265
<INCOME-TAX> 550
<INCOME-CONTINUING> 0
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 205,715
<EPS-PRIMARY> .07
<EPS-DILUTED> 0
</TABLE>
