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SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 10-QSB
QUARTERLY REPORT UNDER SECTION 13 OR 15(d) OF
THE SECURITIES EXCHANGE ACT OF 1934
For the quarterly period ended September 30, 1995
Commission File No.
0-2532
FIFTH DIMENSION INC.
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(Exact Name of Small Business Issuer as Specified in its Charter)
New Jersey 21-0717490
- --------------------------------------- -------------------------------------
(State or other jurisdiction of (I.R.S. Employer Identification
incorporation or organization) number)
801 New York Avenue, Trenton, New Jersey 08638
- --------------------------------------------------------------------------------
(Address of Principal Executive Office) (Zip Code)
Issuer's Telephone Number, Including Area Code (609) 393-8350
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Indicate by check mark whether the Registrant (1) has filed all reports required
to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during
the preceding 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 _____
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Indicate the number of shares outstanding of each of the issuer's classes
of common stock, as of the latest practicable date:
As of September 30, 1995 the Registrant had outstanding 1,093,636 shares of
Common Stock $.33 1/3 par value.
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FIFTH DIMENSION INC.
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TABLE OF CONTENTS
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PERIOD ENDED SEPTEMBER 30, 1995
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PAGE
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PART 1 - FINANCIAL INFORMATION
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Item 1 - Financial Statements
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Balance Sheet 1.
Statement of Operations and Retained Earnings 2.
Statement of Cash Flows 3.
Notes to Financial Statements 4.
Item 2 - Management's Discussion and Analysis of
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Financial Condition and Results of Operations 5.
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FIFTH DIMENSION INC.
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BALANCE SHEET
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(UNAUDITED)
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SEPTEMBER 30, 1995
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ASSETS
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CURRENT ASSETS:
Cash and Short-Term Investments $ 206,224.
Accounts Receivable - Net 205,561.
Inventories 1,167,115.
Prepaid Expenses 25,629.
Prepaid Income Taxes -
-----------
Total Current Assets 1,604,529.
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PROPERTY, PLANT AND EQUIPMENT - Net of Accumulated
Depreciation 635,694.
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PATENT COSTS, LESS ACCUMULATED AMORTIZATION 17,846.
-----------
DEFERRED INCOME TAXES 87,880.
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TOTAL ASSETS $2,345,949.
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LIABILITIES AND STOCKHOLDERS' EQUITY
------------------------------------
CURRENT LIABILITIES:
Notes Payable - Current Portion $ 225,000.
Accounts Payable 126,494.
Accrued Expenses and Payroll Taxes 21,005.
Accrued Compensation and Vacation 80,492.
Income Taxes -
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Total Current Liabilities 452,991.
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LONG TERM LIABILITIES:
Notes Payable - Long Term Portion 95,833.
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DEFERRED INCOME TAXES 20,233.
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TOTAL LIABILITIES 569,057.
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STOCKHOLDERS' EQUITY:
Common Stock - ($.33 1/3 Par Value) 364,936.
Additional Paid-In Capital 403,663.
Treasury Stock - At Cost ( 604.)
Retained Earnings 1,008,897.
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TOTAL STOCKHOLDERS' EQUITY 1,776,892.
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TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY $2,345,949.
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1
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FIFTH DIMENSION INC.
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STATEMENT OF OPERATIONS AND RETAINED EARNINGS
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(UNAUDITED)
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QUARTER NINE MONTHS QUARTER NINE MONTHS
ENDED ENDED ENDED ENDED
SEPTEMBER 30, 1995 SEPTEMBER 30, 1994
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NET SALES $1,078,578. $2,723,269. $1,097,400. $3,046,312.
COST OF SALES 744,136. 2,037,224. 779,550. 2,141,324.
----------- ----------- ----------- -----------
GROSS PROFIT ON SALES 334,442. 686,045. 317,850. 904,988.
OPERATING EXPENSES 292,464. 921,660. 262,259. 755,674.
INTEREST EXPENSE 5,516. 14,108. 4,388. 12,320.
----------- ----------- ----------- -----------
OPERATING INCOME (LOSS) 36,462. (249,723.) 51,203. 136,994.
OTHER INCOME 1,691. 14,151. 2,108. 8,456.
----------- ----------- ----------- -----------
INCOME (LOSS) BEFORE TAXES 38,153. (235,572.) 53,311. 145,450.
PROVISION FOR INCOME TAXES
(BENEFIT) 11,496. (70,978.) 18,445. 50,325.
----------- ----------- ----------- -----------
NET INCOME (LOSS) 26,657. (164,594.) 34,866. 95,125.
RETAINED EARNINGS AT
BEGINNING OF PERIOD 982,240. 1,173,491. 1,135,068. 1,074,809.
----------- ----------- ----------- -----------
RETAINED EARNINGS AT END
OF PERIOD $1,008,897. $1,008,897. $1,169,934. $1,169,934.
----------- ----------- ----------- -----------
NET INCOME (LOSS) PER
COMMON SHARE $ .02 $ (.15) $ .03 $ .09
----------- ----------- ----------- -----------
WEIGHTED AVERAGE OF COMMON
SHARES OUTSTANDING 1,093,636. 1,093,636. 1,093,636. 1,093,636.
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2
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FIFTH DIMENSION, INC.
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STATEMENT OF CASH FLOWS
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(UNAUDITED)
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NINE MONTHS ENDED SEPTEMBER 30,
1995 1994
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CASH FLOWS FROM OPERATING ACTIVITIES
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Net Income (Loss) $(164,594.) $ 95,125.
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ADJUSTMENTS TO RECONCILE NET INCOME (LOSS)
- ------------------------------------------
TO NET CASH PROVIDED BY OPERATING ACTIVITIES:
- --------------------------------------------
Depreciation Expense 90,000. 80,980.
(Increase) Decrease in Accounts Receivable 527,687. (61,944.)
(Increase) Decrease in Inventory (337,208.) 89,544.
(Increase) Decrease in Prepaid Expenses
and Taxes 13,279. 17,528.
(Increase) Decrease in Deferred Income Taxes (88,978.) -
Increase (Decrease) in Accounts Payable (93,947.) (27,834.)
Increase (Decrease) in Accrued Expenses
and Taxes (101,507.) 93,949.
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9,326. 192,223.
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Net Cash Provided (Used) by Operating
Activities (155,268.) 287,348.
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CASH FLOWS FROM INVESTING ACTIVITIES
- ------------------------------------
Capital Expenditures (48,966.) (94,175.)
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CASH FLOWS FROM FINANCING ACTIVITIES
- ------------------------------------
Proceeds from Loans 175,000. -
Reduction in Notes Payable (37,500.) (133,500.)
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Net Cash Provided (Used) by Financing
Activities 137,500. (133,500.)
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NET INCREASE (DECREASE) IN CASH AND CASH
----------------------------------------
EQUIVALENTS (66,734.) 59,673.
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CASH AND CASH EQUIVALENTS AT BEGINNING
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OF PERIOD 272,958. 166,003.
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CASH AND CASH EQUIVALENTS AT END OF
-----------------------------------
PERIOD $ 206,224. $ 225,676.
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3
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FIFTH DIMENSION INC.
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NOTES TO FINANCIAL STATEMENTS
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SEPTEMBER 30, 1995
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NOTE #1 INVENTORIES
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On an interim basis, the cost of goods sold and resulting inventory
valuation is calculated using the gross profit method. A physical
inventory is taken December 31 of each year and a distribution into
raw materials, work in process and finished goods is only available at
that time.
4
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FIFTH DIMENSION INC.
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PERIOD ENDED SEPTEMBER 30, 1995
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PART 1 - ITEM 2
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MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF
- --------------------------------------------------------------------------
OPERATIONS
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The Registrant reported net income of $26,657 for the quarter ended September
30, 1995, reducing the loss for the nine month period then ended to $164,594.
This compares to reported income of $34,866 and $95,125 for the respective
periods in 1994. The improvement in current operations resulted from the
resumption of full production on the Kearfott Guidance and Navigation slip ring
contract for the Trident IMU which had experienced delays and problems during
the first half of this year. Sales increased to $1,078,578 for the latest
quarter which compares to prior year sales of $1,097,400 for the same quarter.
Sales of $2,723,269 for the nine month period are somewhat lower than 1994 sales
of $3,046,312 for the same period. The resumption of full production resulted in
a gross profit increase to 31% of sales for the latest quarter. This is a
significant improvement over the 23% gross profit reported at June 30 and is a
slight improvement over 1994 gross profit percentages. Operating expenses
declined slightly during the latest period, but were higher for the quarterly
and nine month periods in comparison to 1994 as a result of increases in
technical salaries and marketing expenses. Interest costs increased as the
Registrant borrowed funds on its line of credit in order to meet short-term cash
requirements.
The financial condition of the Registrant remained stable during the current
quarter as loan proceeds were used to reduce current liabilities as of the end
of the quarter. For the nine month period ended September 30, decreases in
accounts receivable have been used to fund inventory increases and a reduction
in current liabilities. The Registrant has purchased fixed assets of $48,966
over the first nine months of 1995 with only $1,068 purchased during the latest
quarter.
The Registrant anticipates a continuing improvement in operating results during
the last quarter of 1995 as full production on the major contract mentioned
above continues and other new contracts move to final production status.
The option for 480 additional slip rings on the current Kearfott Guidance and
Navigation slip ring contract expired without being exercised. At this time, no
new contracts for this program are under discussion. Management does not believe
that there will be a follow-on contract beyond the current contract which is
scheduled for completion at the end of 1996. Management continues to seek new
business and programs to replace the significant revenues of this contract.
No other changes have occurred which would have a material effect on the
liquidity, financial condition or results of operations of the Registrant.
5
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FIFTH DIMENSION INC.
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SIGNATURES
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In accordance with the requirements of the Exchange Act, the Registrant caused
this report to be signed on its behalf by the undersigned, thereunto duly
authorized.
FIFTH DIMENSION INC.
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(Registrant)
DATE November 7, 1995 BY /s/ Craig Ebner
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Craig Ebner
President
6
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<LEGEND>
THIS SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM THE BALANCE
SHEET, STATEMENT OF OPERATIONS AND RETAINED EARNINGS AND STATEMENT OF CASH FLOWS
AND IS QUALIFIED IN ITS ENTIRETY BY REFERENCE TO SUCH FINANCIAL STATEMENTS.
</LEGEND>
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<PERIOD-TYPE> 3-MOS
<FISCAL-YEAR-END> DEC-31-1995
<PERIOD-START> JUL-01-1995
<PERIOD-END> SEP-30-1995
<CASH> 206,224
<SECURITIES> 364,936
<RECEIVABLES> 205,561
<ALLOWANCES> 0
<INVENTORY> 1,167,115
<CURRENT-ASSETS> 1,604,529
<PP&E> 635,694
<DEPRECIATION> 0
<TOTAL-ASSETS> 2,345,949
<CURRENT-LIABILITIES> 452,991
<BONDS> 0
<COMMON> 364,936
0
0
<OTHER-SE> 1,411,956
<TOTAL-LIABILITY-AND-EQUITY> 2,345,949
<SALES> 1,078,578
<TOTAL-REVENUES> 1,080,269
<CGS> 744,136
<TOTAL-COSTS> 1,036,600
<OTHER-EXPENSES> 0
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 5,516
<INCOME-PRETAX> 38,153
<INCOME-TAX> 11,496
<INCOME-CONTINUING> 0
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 26,657
<EPS-PRIMARY> .02
<EPS-DILUTED> 0
</TABLE>
