<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 9-30-97
( ) 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 9-30-97
<PAGE> 2
CVD EQUIPMENT CORPORATION
BALANCE SHEET
ASSETS
SEPTEMBER 30,1997
<TABLE>
<CAPTION>
SEPTEMBER 30
1997
----------
<S> <C>
CURRENT ASSETS:
CASH $531,178
ACCOUNTS RECEIVABLE 226,456
COST IN EXCESS OF BILLINGS 1,452,846
INVENTORIES 86,242
DEFFERED TAXES 67,736
OTHER CURRENT ASSETS 25,949
----------
TOTAL CURRENT ASSETS 2,390,407
PROPERTY, PLANT, & EQUIPMENT
AT COST & NET OF ACCUMULATED DEPRECIATION 780,510
OTHER ASSETS:
LOAN RECEIVABLE-OFFICER 505,171
OTHER 99,127
----------
TOTAL OTHER ASSETS 604,298
TOTAL ASSETS 3,775,215
==========
</TABLE>
<PAGE> 3
CVD EQUIPMENT CORPORATION
BALANCE SHEET
LIABILTIES & STOCKHOLDER'S EQUITY
SEPTEMBER 30,1997
<TABLE>
<CAPTION>
SEPTEMBER 30
1997
----------
<S> <C>
CURRENT LIABILTIES:
NOTES PAYABLE $0.00
CURRENT MATURITIES OF LONG TERM DEBT 4,013
ACCOUNTS PAYABLE 74,453
BILLINGS IN EXCESS OF COST 0
OTHER CURRENT LIABILITIES 100,434
----------
TOTAL CURRENT LIABILITIES 178,900
LONG TERM DEBT 0
----------
TOTAL LIABILTIES 178,900
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 783,067
----------
TOTAL EQUITY 3,596,315
TOTAL LIABILTIES & EQUITY 3,775,215
==========
</TABLE>
<PAGE> 4
CVD EQUIPMENT CORPORATION
STATEMENT OF INCOME & RETAINED EARNINGS
SEPTEMBER 30,1997
<TABLE>
<CAPTION>
THREE MONTHS ENDED
SEPTEMBER 30
1997 1996
---------- ----------
<S> <C> <C>
REVENUES
NET SALES 857,735 299,598
REVENUE ON UNCOMPLETED CONTRACTS 165,064 1,045,509
---------- ----------
TOTAL REVENUE 1,022,799 1,345,107
COST OF GOODS SOLD 597,077 753,178
---------- ----------
GROSS PROFIT 425,722 591,929
OPERATING EXPENSES
SELLING, SHIPPING, & GENERAL ADMINISTRTIVE 208,252 201,641
INTEREST EXPENSE 451 4,554
---------- ----------
TOTAL OPERATING EXPENSE 208,703 206,195
OPERATING INCOME (LOSS) 217,019 385,734
OTHER INCOME (INCLUDING INTEREST INCOME) 13,798 8,449
---------- ----------
INCOME BEFORE PROVISION FOR TAX 230,817 394,183
PROVISION FOR TAX 54,788 49,588
---------- ----------
NET INCOME (LOSS) 176,029 344,595
RETAINED EARNINGS AT BEGINNING 607,038 (466,814)
RETAINED EARNINGS AT END 783,067 (122,219)
========== ==========
EARNINGS (LOSS) PER COMMON SHARE 0.06 0.12
WEIGHTED AVERAGE NUMBER OF COMMON
SHARES OUTSTANDING 2,918,750 2,918,750
</TABLE>
<PAGE> 5
CVD EQUIPMENT CORPORATION
STATEMENT OF INCOME & RETAINED EARNINGS
SEPTEMBER 30,1997
<TABLE>
<CAPTION>
NINE MONTHS ENDED
SEPTEMBER 30
1997 1996
---------- ----------
<S> <C> <C>
REVENUES
NET SALES 1,779,785 1,133,011
REVENUE ON UNCOMPLETED CONTRACTS 1,424,612 2,489,924
---------- ----------
TOTAL REVENUE 3,204,397 3,622,935
COST OF GOODS SOLD 1,948,992 2,122,867
---------- ----------
GROSS PROFIT 1,255,405 1,500,068
OPERATING EXPENSES
SELLING, SHIPPING, & GENERAL ADMINISTRTIVE 617,298 613,789
INTEREST EXPENSE 4,826 23,555
---------- ----------
TOTAL OPERATING EXPENSE 622,124 637,344
OPERATING INCOME (LOSS) 633,281 862,724
OTHER INCOME (INCLUDING INTEREST INCOME) 76,521 25,670
---------- ----------
INCOME BEFORE PROVISION FOR TAX 709,802 888,394
PROVISION FOR TAX 109,980 58,720
---------- ----------
NET INCOME (LOSS) 599,822 829,674
RETAINED EARNINGS AT BEGINNING 183,245 (951,893)
RETAINED EARNINGS AT END 783,067 (122,219)
========== ==========
EARNINGS (LOSS) PER COMMON SHARE 0.21 0.28
WEIGHTED AVERAGE NUMBER OF COMMON 2,918,750 2,918,750
SHARES OUTSTANDING
</TABLE>
<PAGE> 6
CVD EQUIPMENT CORPORATION
STATEMENT OF CASH FLOWS
SEPTEMBER 30,1997
<TABLE>
<CAPTION>
THREE MONTHS ENDED
SEPTEMBER 30
1997 1996
---------- ----------
<S> <C> <C>
CASH FLOWS FROM ACTIVITES
NET INCOME (LOSS) 176,029 344,595
DEPRECIATION 31,663 63,391
DECREASE IN:
ACCOUNTS RECEIVABLES 262,939 (304,966)
COST IN EXCESS OF BILLINGS (354,624) 26,359
INVENTORIES (6,483) 40,000
OTH CURRENT ASSETS 5,647 (24,224)
OTHER ASSETS (44,280) 9,002
INCREASE IN:
ACCOUNTS PAYABLE (54,815) (182,831)
BILLINGS IN EXCESS OF COST 0 28,813
OTH CURRENT LIABILITIES 85,752 98,638
---------- ----------
TOTAL ADJUSTMENT (74,201) (245,818)
NET CASH FROM OPERATIONS 101,828 98,777
CASH FLOWS FOR INVESTMENTS
LOAN RECEIVABLES-OFFICER 287 (7,872)
CAPITAL EXPENDITURES (17,173) (21,809)
---------- ----------
NET CASH USED FROM INVESTMENTS (16,886) (29,681)
CASH FLOWS FROM FINANCINGS
INCREASE IN :
NOTES PAYABLE 0 0
DEBT-CURRENT (35,827) (50,482)
DEBT-LONG TERM 0 (1,232)
---------- ----------
NET CASH PROVIDED BY FINANCINGS (35,827) (51,714)
---------- ----------
NET INCREASE IN CASH 49,115 17,382
CASH BEGINNING OF PERIOD 482,063 116,498
CASH END OF PERIOD 531,178 133,880
========== ==========
</TABLE>
<PAGE> 7
CVD EQUIPMENT CORPORATION
STATEMENT OF CASH FLOWS
SEPTEMBER 30,1997
<TABLE>
<CAPTION>
NINE MONTHS ENDED
SEPTEMBER 30
1997 1996
---------- ----------
<S> <C> <C>
CASH FLOWS FROM ACTIVITES
NET INCOME (LOSS) 599,822 829,674
DEPRECIATION 94,586 193,333
DECREASE IN:
ACCOUNTS RECEIVABLES 364,562 (197,665)
COST IN EXCESS OF BILLINGS (163,026) 70,977
INVENTORIES (46,483) 100,312
OTH CURRENT ASSETS (7,204) (16,731)
OTHER ASSETS (33,595) 26,824
INCREASE IN:
ACCOUNTS PAYABLE (45,709) (18,582)
BILLINGS IN EXCESS OF COST (41,090) (77,501)
OTH CURRENT LIABILITIES (73,151) (395,166)
---------- ----------
TOTAL ADJUSTMENT 48,890 (314,199)
NET CASH FROM OPERATIONS 648,712 515,475
CASH FLOWS FOR INVESTMENTS
LOAN RECEIVABLES-OFFICER (5,171) (23,543)
CAPITAL EXPENDITURES (47,893) (82,135)
---------- ----------
NET CASH USED FROM INVESTMENTS (53,064) (105,678)
CASH FLOWS FROM FINANCINGS
INCREASE IN :
NOTES PAYABLE 0 0
DEBT-CURRENT (131,682) (511,928)
DEBT-LONG TERM 0 (4,832)
---------- ----------
NET CASH PROVIDED BY FINANCINGS (131,682) (516,760)
NET INCREASE IN CASH 463,966 (106,963)
CASH BEGINNING OF PERIOD 67,212 240,843
CASH END OF PERIOD 531,178 133,880
========== ==========
</TABLE>
<PAGE> 8
CVD EQUIPMENT CORPORATION
NOTE TO FINANCIAL STATEMENTS
SEPTEMBER 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 SEPTEMBER 30, 1997
Revenue for the third quarter of 1997 was $1,022,799. This is a
decrease of 24% when compared to the third quarter of 1996. Gross
profit for the third quarter of 1997 is 42% versus 44% in the
comparable period one year ago. At the end of the third quarter,
CVD's backlog is $2.1 million.
Selling and G & A expense is higher for the third quarter when
compared with last year. For 1997, there was $208,000 expensed to
these accounts versus $202,000 in 1996. This $6,000 increase is
attributed mainly to higher building maintenance.
Interest expense is down again as another $35,500 was paid toward
the balance with BNL. At the close of the third quarter, the
outstanding balance was $4,000. Subsequent to the close of the
third quarter, another $4,000 was paid, bringing the balance to $0.
Liquidity
The profitable results for the quarter were enough to compensate
for the $35,500 paid toward debt reduction. CVD's cash position
increased by $49,000 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: October 31, 1997
<TABLE> <S> <C>
<ARTICLE> 5
<S> <C>
<PERIOD-TYPE> 9-MOS
<FISCAL-YEAR-END> DEC-31-1997
<PERIOD-START> JAN-01-1997
<PERIOD-END> SEP-30-1997
<CASH> 531,178
<SECURITIES> 0
<RECEIVABLES> 1,679,302
<ALLOWANCES> 0
<INVENTORY> 86,242
<CURRENT-ASSETS> 2,390,407
<PP&E> 2,801,216
<DEPRECIATION> 2,020,706
<TOTAL-ASSETS> 3,775,215
<CURRENT-LIABILITIES> 178,900
<BONDS> 0
0
0
<COMMON> 2,813,248
<OTHER-SE> 783,067
<TOTAL-LIABILITY-AND-EQUITY> 3,775,215
<SALES> 1,779,785
<TOTAL-REVENUES> 3,204,397
<CGS> 1,948,992
<TOTAL-COSTS> 0
<OTHER-EXPENSES> 617,298
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 4,826
<INCOME-PRETAX> 709,802
<INCOME-TAX> 109,980
<INCOME-CONTINUING> 0
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 599,822
<EPS-PRIMARY> .21
<EPS-DILUTED> 0
</TABLE>
