-----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, GVEaHGExPd8pdpW9qxRGy9i24qJoElalNadkOdAwRNOSNvYeOYJ+B4qW4DFxGNBU 81lJ5F8loRFgyK/B5tNYJg== 0000950123-96-006056.txt : 19961031 0000950123-96-006056.hdr.sgml : 19961031 ACCESSION NUMBER: 0000950123-96-006056 CONFORMED SUBMISSION TYPE: 10QSB PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 19960930 FILED AS OF DATE: 19961030 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: 96649851 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 CVD EQUIPMENT CORPORATION 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 2 CVD EQUIPMENT CORP. BALANCE SHEET ASSETS SEPTEMBER 30, 1996
SEPTEMBER 30 1996 ------------ 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 ==========
3 CVD EQUIPMENT CORP. BALANCE SHEET LIABILITIES & STOCKHOLDER'S EQUITY SEPTEMBER 30, 1996
SEPTEMBER 30 1996 ------------ 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 ===========
4 CVD EQUIPMENT CORP. STATEMENT OF INCOME & RETAINED EARNINGS SEPTEMBER 30, 1996
THREE MONTHS ENDED SEPTEMBER 30 1996 1995 ----------- ----------- 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
5 CVD EQUIPMENT CORP. STATEMENT OF INCOME & RETAINED EARNINGS SEPTEMBER 30, 1996
NINE MONTHS ENDED SEPTEMBER 30 1996 1995 ----------- ----------- 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
6 CVD EQUIPMENT CORP. STATEMENT OF CASH FLOWS SEPTEMBER 30, 1996
THREE MONTHS ENDED SEPTEMBER 30 1996 1995 --------- --------- 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 ========= =========
7 CVD EQUIPMENT CORP. STATEMENT OF CASH FLOWS SEPTEMBER 30, 1996
NINE MONTHS ENDED SEPTEMBER 30 1996 1995 --------- --------- 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 ========= =========
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. 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 10 EXHIBIT INDEX EXHIBIT NO. DESCRIPTION 27 FINANCIAL DATA SCHEDULE EX-27 2 FINANCIAL DATA SCHEDULE
5 9-MOS DEC-31-1996 JAN-01-1996 SEP-30-1996 133,880 0 1,278,158 0 60,285 1,508,486 3,880,692 3,031,397 2,954,508 263,479 0 0 0 2,813,248 (122,218) 2,954,508 1,133,011 3,622,935 2,122,867 0 618,632 0 23,555 888,394 58,720 0 0 0 0 829,674 .28 0
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