-----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, AL08BcU+rFBfKal2pu73jBBj+kblcqea28mqwzsCJ88sU1kzJ/tSLv32gOKscQ8T 00lp2JC6R6nIY+SjjNzftA== 0000812152-97-000003.txt : 19970520 0000812152-97-000003.hdr.sgml : 19970520 ACCESSION NUMBER: 0000812152-97-000003 CONFORMED SUBMISSION TYPE: 10QSB PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 19970331 FILED AS OF DATE: 19970515 SROS: NONE FILER: COMPANY DATA: COMPANY CONFORMED NAME: OZO DIVERSIFIED AUTOMATION INC /CO/ CENTRAL INDEX KEY: 0000812152 STANDARD INDUSTRIAL CLASSIFICATION: COMPUTER PERIPHERAL EQUIPMENT, NEC [3577] IRS NUMBER: 840922701 STATE OF INCORPORATION: CO FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 10QSB SEC ACT: 1934 Act SEC FILE NUMBER: 000-16335 FILM NUMBER: 97608538 BUSINESS ADDRESS: STREET 1: 7450 EAST JEWELL AVE STE A CITY: DENVER STATE: CO ZIP: 80231 BUSINESS PHONE: 3033680401 MAIL ADDRESS: STREET 1: 7450 E JEWELL AVE STREET 2: STE A CITY: DENVER STATE: CO ZIP: 80231 10QSB 1 FORM 10QSB FORM 10-QSB U.S. SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 (Mark One) [X] QUARTERLY REPORT UNDER SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended March 31, 1997 [ ] TRANSITION REPORT UNDER SECTION 13 OR 15(d) OF THE EXCHANGE ACT For the transition period from _______________ to ______________ Commission File No. 0-16335 OZO DIVERSIFIED AUTOMATION, INC. 7450 East Jewell Avenue, Suite A Denver, Colorado 80231 Telephone: (303) 368-0401 Colorado 84-0922701 (State of Incorporation) (IRS Employer Identification No.) Indicate by check mark whether the Issuer (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 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 As of March 31, 1997, Registrant had 458,164 shares of its $.10 par value common stock outstanding. 1 PART I - FINANCIAL INFORMATION OZO Diversified Automation, Inc. BALANCE SHEETS ASSETS
March 31, December 31, 1997 1996 (Unaudited) CURRENT ASSETS Cash $ 1,361 $ 3,111 Accounts and notes receivable, net of allowance for doubtful accounts of $6,500 352,595 257,775 Inventories (Note 3) 292,286 388,425 Prepaid expenses 500 11,385 Other 2,082 0 ------------ ------------- Total Current Assets 648,824 660,696 ------------ ------------- PROPERTY AND EQUIPMENT Manufacturing 150,452 149,328 Furniture and Fixtures 156,958 156,958 Capitalized Lease 195,246 195,246 Leasehold Improvements 3,353 0 Vehicle 10,820 10,820 ------------ ------------- 516,829 512,352 Less accumulated depreciation 337,611 326,199 ------------ ------------- Total Property and Equipment 179,218 186,153 OTHER ASSETS Deferred Financing Costs 14,297 16,254 ------------ ------------- Total Assets $ 842,339 $ 863,103 ------------ ------------- ------------ -------------
See notes to financial statements 2 PART I - FINANCIAL INFORMATION (CONTINUED) OZO DIVERSIFIED AUTOMATION, INC. BALANCE SHEETS (CONTINUED) LIABILITIES AND SHAREHOLDERS' DEFICIENCY
March 31, December 31, 1997 1996 (Unaudited) CURRENT LIABILITIES Current portion of notes payable $ 50,871 $ 34,607 Accounts payable and accrued expenses 429,240 470,205 Note payable Bank 30,000 28,000 Note payable - Officer 84,000 84,500 ------------ ----------- Total Current Liabilities 594,111 617,312 ------------ ----------- OTHER LIABILITIES Long Term Debt and Capitalized Lease Obligation 358,289 387,387 ------------ ----------- Total Liabilities 952,400 1,004,699 ------------ ----------- SHAREHOLDERS' DEFICIENCY Preferred stock, $.10 par value authorized 1,000,000 shares issued - none Common stock, $.10 par value authorized, 5,000,000 shares issued and outstanding 458,164 shares 45,816 45,816 Capital in excess of par value 1,176,254 1,176,254 Accumulated deficit (1,332,131) (1,363,666) ------------- ----------- Total Shareholders Deficiency (110,061) (141,596) Total Liabilities & Stockholders' Deficiency $ 842,339 $ 863,103 ------------- ----------- ------------- -----------
See notes to financial statements 3 OZO DIVERSIFIED AUTOMATION, INC. STATEMENTS OF OPERATIONS (UNAUDITED)
Three Months Ended March 31, 1997 1996 Net Sales $ 676,044 $ 712,550 Cost of Sales 386,659 380,413 ------------ ------------ Gross Profit 289,385 332,137 ------------ ------------ Operating Expenses: Marketing & Sales 105,096 129,867 Research & Development 37,914 40,371 General and Administrative 114,840 136,537 ------------ ------------ 257,850 306,775 ------------ ------------ Income before taxes 31,535 25,362 Provision for Income Taxes 6,307 5,072 Tax Benefit of Operating Loss Carry Forward (6,307) (5,072) ------------ ------------ NET INCOME $ 31,535 $ 25,362 ------------ ------------ ------------ ------------ EARNINGS PER SHARE $ 0.07 $ 0.06 ------------ ------------ ------------ ------------
See notes to financial statements 4 OZO DIVERSIFIED AUTOMATION, INC. STATEMENTS OF CASH FLOWS (UNAUDITED)
Three Months Ended March 31, 1997 1996 Cash flows from operating activities: Net Income $ 31,535 $ 25,362 Adjustments to reconcile net income to net cash used in operating activities: Depreciation 11,412 3,388 Amortization of deferred financing costs 1,957 1,957 Other (2,082) (2,082) Decrease (increase) in assets: Accounts receivable (94,820) (145,936) Inventories 96,139 86,845 Prepaid expenses 10,885 15,144 Increase (decrease) in accounts payable and accrued expenses (39,465) 37,337 ----------- ----------- Total adjustments (15,974) (3,347) ----------- ----------- Net cash used in operating activities 15,561 22,015 ----------- ----------- Cash flows from investing activities: Capital Expenditures (4,476) 0 ----------- ----------- Net cash provided (used) in investing activities (4,476) 0 ----------- ----------- Cash flows from financing activities: Increase (decrease) in notes payable (12,835) (5,541) ----------- ----------- Net cash provided (used) by financing activities (12,835) (5,541) ----------- ----------- Net increase (decrease) in cash (1,750) 16,474 Cash at beginning of period 3,111 3,162 ----------- ----------- Cash at end of period $ 1,361 $ 19,636 ----------- ----------- ----------- -----------
See notes to financial statements 5 OZO DIVERSIFIED AUTOMATION, INC. NOTES TO FINANCIAL STATEMENTS THREE MONTHS ENDED MARCH 31, 1997 AND 1996 (UNAUDITED) In the opinion of management of OZO Diversified Automation, Inc. (the Company), the accompanying unaudited financial statements reflect all adjustments (consisting only of normal recurring accruals) necessary to present fairly the financial position of the Company as of March 31, 1997 and the results of operations and changes in financial position for the three months ended March 31, 1997. The results of operations for the three months ended March 31, 1997 are not necessarily indicative of the results that may be expected for the year ending December 31, 1997. These unaudited financial statements should be read in conjunction with the Company's annual report on Form 10-KSB for the year ended December 31, 1996. NOTE 1 - A summary of significant accounting policies is currently on file with the Securities and Exchange Commission on Form 10-KSB. NOTE 2 - Income Taxes: At December 31, 1996, the Company had net operating loss carryforwards totaling approximately $1,165,000 that may be offset against future taxable income through 2011 and research and development credits of approximately $51,000 expiring through 2011. The Company has fully reserved the tax benefits of these operating losses because the likelihood of realization of the tax benefits cannot be determined. These carryforwards are subject to review by the Internal Revenue Service. Temporary differences between the time of reporting certain items for financial and tax reporting purposes, primarily from using different methods of reporting depreciation costs and warranty and vacation accruals, are not considered significant by management of the Company. NOTE 3 - Inventories:
March 31, December 31, 1997 1996 Raw Materials $ 239,683 $ 311,989 Work in process 44,823 76,436 Finished Goods 7,780 0 ------------- ------------ $ 292,286 $ 388,425
6 MANAGEMENTS DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS For the first three months ended March 31,1997, the Company had revenues of $676,044, a 5.1% decrease from revenues of $712,550 recorded for the comparable period in 1996. The decrease in revenues is due in part to delays in the receipt of equipment orders for domestic sales, as well as soft economic conditions in various Far Eastern markets where sales have been historically strong. In both cases, Management expects that revenues will increase over time, as the Far Eastern business sectors recover, and as delayed equipment orders become rescheduled during future time periods. Despite the slight decrease in total revenues reported during the first quarter of 1997, the Company posted earnings of $31,535, a 24.3% improvement over net income of $25,362 reported during the same period in 1996. Earnings per share during this period improved to $0.07, compared to $0.06 which was recorded during first quarter of 1996. The improvement in net earnings can be attributed to modest price increases (secured for the Company's products early in the year), aggressive cost containment efforts adopted by Management in fourth quarter of 1996 and continuing into 1997, as well as the realization of benefits resulting from numerous re-engineering projects that the Company has actively pursued over the past six months. These re-engineering activities include improvements in manufacturing cycle times, upgrades in production equipment, enhanced procurement and inventory procedures, quality defect reduction programs, and numerous machine reliability initiatives. Management intends to continue the re-engineering process, both in the Company's manufacturing group, as well as in various administrative departments. From a business perspective, the Company continues to focus on the depaneling application as the primary market for its premium routing equipment, the PanelMASTER HS and the PanelROUTER SI. In February the Company attended the NEPCON West trade show, where both products were displayed and demonstrated. Feedback from trade show attendees, existing customers, and prospective buyers remains positive, and Management believes that the market acceptance phase for its upper tier products has progressed satisfactorily. The premium products were developed by the Company over the past three years in order to remain competitive in a marketplace that demands increasing speed and performance, and enhanced functionality in terms of factory automation and fixturing. As of May 8, 1997 the Company had a backlog of open orders of approximately $409,000, compared to a backlog of $490,000 on the same date in 1996. The current backlog combined with the forecast of orders in subsequent quarters, in Managements opinion, provide the opportunity for the Company to continue as a going concern. 7 PART II - OTHER INFORMATION OZO Diversified Automation, Inc. Items 1- 5 Not Applicable. Item 6 Exhibits and Reports on Form 8-K a) Exhibits none. b) No Reports on Form 8-K were filed during the quarter ending March 31, 1997. Item 7 Not Applicable 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. OZO DIVERSIFIED AUTOMATION, INC. By: David J. Wolenski Ron C. Carpenter David J. Wolenski Ron C. Carpenter Principal Executive Officer Principal Accounting Officer Principal Financial Officer Chief Financial Officer Dated: May 15, 1997 8 EX-27 2
5 3-MOS DEC-31-1997 MAR-31-1997 1,361 0 352,595 0 292,286 648,824 516,829 337,611 842,339 594,111 240,000 0 0 45,816 (155,877) 842,339 676,044 676,044 386,659 386,659 0 0 0 31,535 6,307 0 0 0 0 31,535 .07 0
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