-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: webmaster@www.sec.gov Originator-Key-Asymmetric: MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB MIC-Info: RSA-MD5,RSA, LT3INqV7sEX+1JBn3x1fzrp7jnWO/shIjof39A1xbH1fqjtxwSNtF/T3pPcgo0be Ppix2d2YEDy0fKI42Vgaxw== 0000950123-96-004093.txt : 19960807 0000950123-96-004093.hdr.sgml : 19960807 ACCESSION NUMBER: 0000950123-96-004093 CONFORMED SUBMISSION TYPE: 10QSB PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 19960630 FILED AS OF DATE: 19960806 SROS: NONE FILER: COMPANY DATA: COMPANY CONFORMED NAME: CVD EQUIPMENT CORP CENTRAL INDEX KEY: 0000766792 STANDARD INDUSTRIAL CLASSIFICATION: SPECIAL INDUSTRY MACHINERY, NEC [3559] IRS NUMBER: 112621692 STATE OF INCORPORATION: NY FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 10QSB SEC ACT: 1934 Act SEC FILE NUMBER: 000-14720 FILM NUMBER: 96604187 BUSINESS ADDRESS: STREET 1: 1881 LAKELAND AVE CITY: RONKONKOMA STATE: NY ZIP: 11779 BUSINESS PHONE: 5169817081 MAIL ADDRESS: STREET 1: 1881 LAKELAND AVENUE CITY: RONKONKOMA STATE: NY ZIP: 11779 10QSB 1 FORM 10QSB FOR P/E 6/30/96 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 2 CVD EQUIPMENT CORP. BALANCE SHEET ASSETS JUNE 30, 1996
JUNE 30 1996 ----------- 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 ===========
3 CVD EQUIPMENT CORP. BALANCE SHEET LIABILITIES & STOCKHOLDER'S EQUITY JUNE 30, 1996
JUNE 30 1996 ----------- 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 ===========
4 CVD EQUIPMENT CORP. STATEMENT OF INCOME & RETAINED EARNINGS JUNE 30, 1996
THREE MONTHS ENDED JUNE 30 1996 1995 ----------- ----------- 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
5 CVD EQUIPMENT CORP. STATEMENT OF INCOME & RETAINED EARNINGS JUNE 30, 1996
SIX MONTHS ENDED JUNE 30 1996 1995 ----------- ----------- 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
6 CVD EQUIPMENT CORP. STATEMENT OF CASH FLOWS JUNE 30, 1996
THREE MONTHS ENDED JUNE 30 1996 1995 --------- ---------- 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 ========= =========
7 CVD EQUIPMENT CORP. STATEMENT OF CASH FLOWS JUNE 30, 1996
SIX MONTHS ENDED JUNE 30 1996 1995 ---- ---- 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 ========= =========
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. 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 10 EXHIBIT INDEX EXHIBIT NO. DESCRIPTION 27 FINANCIAL DATA SCHEDULE EX-27 2 FINANCIAL DATA SCHEDULE
5 6-MOS DEC-31-1996 JAN-01-1996 JUN-30-1996 116498 0 999551 0 100285 1228273 3858885 2968006 2717009 369575 0 0 0 2813248 (466814) 2717009 833413 2277828 1369689 0 412148 0 19001 494211 9132 0 0 0 0 485079 .17 .00
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