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Previous: GENICOM CORP, 10-Q, 1997-08-13 |
Next: AMOCO CO, 10-Q, 1997-08-13 |
<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 6-30-97
( ) 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 6-30-97
<PAGE> 2
CVD EQUIPMENT CORP.
BALANCE SHEET
ASSETS
JUNE 30, 1997
<TABLE>
<CAPTION>
JUNE 30
1997
----------
<S> <C>
CURRENT ASSETS:
CASH $ 482,064
ACCOUNTS RECEIVABLE 514,394
COST IN EXCESS OF BILLINGS 1,073,222
INVENTORIES 79,759
DEFFERED TAXES 67,736
OTHER CURRENT ASSETS 31,596
----------
TOTAL CURRENT ASSETS 2,248,771
PROPERTY, PLANT, & EQUIPMENT
at cost & net of accumulated depreciation 795,001
OTHER ASSETS:
LOAN RECEIVABLE-OFFICER 505,458
OTHER 54,847
----------
TOTAL OTHER ASSETS 560,305
TOTAL ASSETS 3,604,077
==========
</TABLE>
<PAGE> 3
CVD EQUIPMENT CORP.
BALANCE SHEET
LIABILITIES & STOCKHOLDER'S EQUITY
JUNE 30, 1997
<TABLE>
<CAPTION>
JUNE 30
1997
----------
<S> <C>
CURRENT LIABILITIES:
NOTES PAYABLE $ 0
CURRENT MATURITIES OF LONG TERM DEBT 39,840
ACCOUNTS PAYABLE 129,268
BILLINGS IN EXCESS OF COST 0
OTHER CURRENT LIABILITIES 14,683
----------
TOTAL CURRENT LIABILITIES 183,791
LONG TERM DEBT 0
----------
TOTAL LIABILITIES 183,791
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 607,038
----------
TOTAL EQUITY 3,420,286
TOTAL LIABILITIES & EQUITY 3,604,077
==========
</TABLE>
<PAGE> 4
CVD EQUIPMENT CORP.
STATEMENT OF INCOME & RETAINED EARNINGS
JUNE 30, 1997
<TABLE>
<CAPTION>
THREE MONTHS ENDED
JUNE 30
1997 1996
----------- -----------
<S> <C> <C>
REVENUES
NET SALES $ 838,083 $ 405,452
REVENUE ON UNCOMPLETED CONTRACTS 236,684 805,497
----------- -----------
TOTAL REVENUE 1,074,767 1,210,949
COST OF GOODS SOLD 646,850 732,256
----------- -----------
GROSS PROFIT 427,917 478,693
OPERATING EXPENSES
SELLING, SHIPPING, & GENERAL ADMINISTRATIVE 205,481 163,566
INTEREST EXPENSE 1,599 6,027
----------- -----------
TOTAL OPERATING EXPENSE 207,080 169,593
OPERATING INCOME (LOSS) 220,837 309,100
OTHER INCOME (INCLUDING INTEREST INCOME) 51,884 8,657
----------- -----------
INCOME BEFORE PROVISION FOR TAX 272,721 317,757
PROVISION FOR TAX 54,642 9,132
----------- -----------
NET INCOME (LOSS) 218,079 308,625
RETAINED EARNINGS AT BEGINNING 388,960 (775,439)
RETAINED EARNINGS AT END 607,039 (466,814)
=========== ===========
EARNINGS (LOSS) PER COMMON SHARE 0.07 0.11
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, 1997
<TABLE>
<CAPTION>
SIX MONTHS ENDED
JUNE 30
1997 1996
----------- -----------
<S> <C> <C>
REVENUES
NET SALES $ 922,050 $ 833,413
REVENUE ON UNCOMPLETED CONTRACTS 1,259,548 1,444,415
----------- -----------
TOTAL REVENUE 2,181,598 2,277,828
COST OF GOODS SOLD 1,351,915 1,369,689
----------- -----------
GROSS PROFIT 829,683 908,139
OPERATING EXPENSES
SELLING, SHIPPING, & GENERAL ADMINISTRATIVE 409,046 412,148
INTEREST EXPENSE 4,375 19,001
----------- -----------
TOTAL OPERATING EXPENSE 413,421 431,149
OPERATING INCOME (LOSS) 416,262 476,990
OTHER INCOME (INCLUDING INTEREST INCOME) 62,723 17,221
----------- -----------
INCOME BEFORE PROVISION FOR TAX 478,985 494,211
PROVISION FOR TAX 55,192 9,132
----------- -----------
NET INCOME (LOSS) 423,793 485,079
RETAINED EARNINGS AT BEGINNING 183,245 (951,893)
RETAINED EARNINGS AT END 607,038 (466,814)
=========== ===========
EARNINGS (LOSS) PER COMMON SHARE 0.15 0.17
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, 1997
<TABLE>
<CAPTION>
THREE MONTHS ENDED
JUNE 30
1997 1996
--------- ---------
<S> <C> <C>
CASH FLOWS FROM ACTIVITIES
NET INCOME (LOSS) $ 218,078 $ 308,624
DEPRECIATION 31,628 65,575
DECREASE IN:
ACCOUNTS RECEIVABLES (19,440) (86,478)
COST IN EXCESS OF BILLINGS 294,420 120,111
INVENTORIES 3,618 20,312
OTH CURRENT ASSETS (8,312) 5,628
OTHER ASSETS 9,120 11,304
INCREASE IN:
ACCOUNTS PAYABLE (28,072) 136,392
BILLINGS IN EXCESS OF COST (18,144) (87,211)
OTH CURRENT LIABILITIES (102,848) (294,279)
--------- ---------
TOTAL ADJUSTMENTS 161,970 (108,646)
NET CASH FROM OPERATIONS 380,048 199,978
CASH FLOWS FOR INVESTMENTS
LOAN RECEIVABLES-OFFICER (INCREASE) 282 (7,786)
CAPITAL EXPENDITURES (20,339) (40,591)
--------- ---------
NET CASH USED FOR INVESTMENTS (20,057) (48,377)
CASH FLOWS FROM FINANCINGS
INCREASE IN:
NOTES PAYABLE 0 0
DEBT-CURRENT (58,470) (147,200)
DEBT-LONG TERM 0 (1,818)
--------- ---------
NET CASH PROVIDED BY FINANCINGS (58,470) (149,018)
--------- ---------
NET INCREASE IN CASH 301,521 2,583
CASH BEGINNING OF PERIOD 180,542 113,915
CASH END OF PERIOD 482,063 116,498
========= =========
</TABLE>
<PAGE> 7
CVD EQUIPMENT CORP.
STATEMENT OF CASH FLOWS
JUNE 30, 1997
<TABLE>
<CAPTION>
SIX MONTHS ENDED
JUNE 30
1997 1996
--------- ---------
<S> <C> <C>
CASH FLOWS FROM ACTIVITIES
NET INCOME (LOSS) $ 423,793 $ 485,079
DEPRECIATION 62,923 129,942
DECREASE IN:
ACCOUNTS RECEIVABLE 101,623 107,301
COST IN EXCESS OF BILLINGS 191,598 44,618
INVENTORIES (40,000) 60,312
OTH CURRENT ASSETS (12,851) 7,493
OTHER ASSETS 10,685 17,822
INCREASE IN:
ACCOUNTS PAYABLE 9,106 164,249
BILLINGS IN EXCESS OF COST (41,090) (106,314)
OTH CURRENT LIABILITIES (158,903) (493,803)
--------- ---------
TOTAL ADJUSTMENTS 123,091 (68,380)
NET CASH FROM OPERATIONS 546,884 416,699
CASH FLOWS FOR INVESTMENTS
LOAN RECEIVABLES-OFFICER (INCREASE) (5,458) (15,671)
CAPITAL EXPENDITURES (30,720) (60,326)
--------- ---------
NET CASH USED FOR INVESTMENTS (36,178) (75,997)
CASH FLOWS FROM FINANCINGS
INCREASE IN:
NOTES PAYABLE 0 0
DEBT-CURRENT (95,855) (461,446)
DEBT-LONG TERM 0 (3,600)
--------- ---------
NET CASH PROVIDED BY FINANCINGS (95,855) (465,046)
NET INCREASE IN CASH 414,851 (124,344)
CASH BEGINNING OF PERIOD 67,212 240,842
CASH END OF PERIOD 482,063 116,498
========= =========
</TABLE>
<PAGE> 8
CVD EQUIPMENT CORPORATION
NOTE TO FINANCIAL STATEMENTS
JUNE 30, 1997
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.
<PAGE> 9
MANAGEMENT'S DISCUSSION AND ANALYSIS
OF FINANCIAL OPERATIONS
CONDITIONS AND RESULTS OF OPERATIONS
THREE MONTHS ENDED JUNE 30, 1997
Revenue for the second quarter of 1997 was $1,074,767. This is a decrease of
11.2% when compared to the second quarter of 1996. Gross profit for the second
quarter of 1997 is 40%, which is consistent to the comparable period one year
ago. At the end of the second quarter, CVD's backlog is $2.2 million.
Selling and G & A expense is higher for the second quarter when compared with
last year. For 1997, there was $205,000 expensed to these accounts versus
$164,000 in 1996. This $41,000 increase is attributed mainly to higher payroll
expense.
Interest expense is down again as another $56,900 was paid toward the balance
with BNL. At the close of the second quarter, the outstanding balance was
$39,000. Subsequent to the close of the second quarter another $19,000 was paid,
bringing the balance to $20,000.
Liquidity
The profitable results for the quarter were enough to compensate for the $56,000
paid toward debt reduction. CVD's cash position increased by $302,000 for the
quarter.
<PAGE> 10
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: July 31, 1997
<TABLE> <S> <C>
<ARTICLE> 5
<S> <C>
<PERIOD-TYPE> 6-MOS
<FISCAL-YEAR-END> DEC-31-1997
<PERIOD-START> JAN-01-1997
<PERIOD-END> JUN-30-1997
<CASH> 482,064
<SECURITIES> 0
<RECEIVABLES> 1,587,616
<ALLOWANCES> 0
<INVENTORY> 79,759
<CURRENT-ASSETS> 2,248,771
<PP&E> 2,784,044
<DEPRECIATION> 1,989,043
<TOTAL-ASSETS> 3,604,077
<CURRENT-LIABILITIES> 183,791
<BONDS> 0
0
0
<COMMON> 2,813,248
<OTHER-SE> 607,038
<TOTAL-LIABILITY-AND-EQUITY> 3,604,077
<SALES> 922,050
<TOTAL-REVENUES> 2,181,598
<CGS> 1,351,915
<TOTAL-COSTS> 0
<OTHER-EXPENSES> 409,046
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 4,375
<INCOME-PRETAX> 478,985
<INCOME-TAX> 55,192
<INCOME-CONTINUING> 0
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 423,793
<EPS-PRIMARY> .15
<EPS-DILUTED> 0
</TABLE>
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