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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 March 31, 1996
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
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(State or other jurisdiction of (I.R.S. Employer Identification Number)
incorporation or organization)
801 New York Avenue, Trenton, New Jersey 08638
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(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 March 31, 1996 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 MARCH 31, 1996
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<CAPTION>
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 Discussions and Analysis of Financial
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Conditions 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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<CAPTION>
MARCH 31,
1996
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ASSETS
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CURRENT ASSETS:
Cash and Short-Term Investments.................................. $ 191,837.
Accounts Receivable - Net........................................ 838,612.
Inventories...................................................... 794,418.
Prepaid Expenses................................................. $ 70,815.
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Total Current Assets........................................ $ 1,895,682.
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PROPERTY, PLANT AND EQUIPMENT - Net of Accumulated
Depreciation..................................................... $ 600,954.
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PATENT COSTS, LESS ACCUMULATED AMORTIZATION........................... $ 14,072.
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TOTAL ASSETS................................................ $ 2,510,708.
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<CAPTION>
LIABILITIES AND STOCKHOLDERS' EQUITY
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CURRENT LIABILITIES:
Notes Payable - Current Portion.................................. $ 50,000.
Accounts Payable................................................. 224,522.
Accrued Expenses................................................. 15,180.
Accrued Compensation and Vacation................................ 214,397.
Income Taxes..................................................... 1,252.
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Total Current Liabilities................................... $ 505,351.
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LONG TERM LIABILITIES:
Notes payable - Long Term Portion................................ $ 70,833.
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DEFERRED INCOME TAXES, NET............................................ $ 3,533.
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TOTAL LIABILITIES................................................ $ 579,717.
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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................................................ $ 1,162,996.
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TOTAL STOCKHOLDERS' EQUITY............................. $ 1,930,991.
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TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY............. $ 2,510,708.
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</TABLE>
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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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<CAPTION>
THREE MONTHS ENDED MARCH 31,
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1996 1995
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<S> <C> <C>
NET SALES $1,335,575. $ 906,561.
COST OF SALES 898,273. 707,458.
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GROSS PROFIT ON SALES 437,302. 199,103.
OPERATING EXPENSES 309,878. 316,461.
INTEREST EXPENSES 4,771. 4,375.
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OPERATING INCOME (LOSS) 122,653. (121,733.)
OTHER INCOME (EXPENSE) 4,298. 4,622.
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INCOME (LOSS) BEFORE TAXES 126,951. (117,111.)
PROVISION FOR INCOME TAXES (BENEFIT) 44,806. (35,281.)
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NET INCOME (LOSS) 82,145. (81,830.)
RETAINED EARNINGS AT BEGINNING OF PERIOD 1,080,851. 1,173,491.
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RETAINED EARNINGS AT END OF PERIOD $1,162,996. $1,091,661.
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NET INCOME (LOSS) PER COMMON SHARE $ .08 $ (.07)
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WEIGHTED AVERAGE OF COMMON SHARES OUTSTANDING $1,093,636. $1,093,636.
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</TABLE>
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FIFTH DIMENSION INC.
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STATEMENT OF CASH FLOWS
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(UNAUDITED)
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<TABLE>
<CAPTION>
THREE MONTHS ENDED MARCH 31,
1996 1995
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CASH FLOWS FROM OPERATING ACTIVITIES
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<S> <C> <C>
Net Income (Loss) $ 82,145. $ (81,830.)
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ADJUSTMENTS TO RECONCILE NET INCOME (LOSS) NET
CASH PROVIDED BY OPERATING ACTIVITIES:
- ---------------------------------------
Depreciation Expense 28,750. 30,000.
(Increase) Decrease in Accounts Receivable (93,328.) 134,137.
(Increase) Decrease in Inventory 58,716. (222,522.)
(Increase) Decrease in Prepaid Expenses and Taxes (16,469.) (15,274.)
Increase (Decrease) in Accounts Payable 86,829. 70,656.
Increase (Decrease) in Accrued Expenses and Compensation 56,787. 8,416.
Increase (Decrease) in Accrued/Deferred Income Taxes 44,807. (49,612.)
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166,092. (44,199.)
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Net Cash Provided (Used) by Operating Activities 248,237. (126,029.)
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CASH FLOWS FROM INVESTING ACTIVITIES
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Capital Expenditures (9,913.) (7,501.)
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CASH FLOWS FROM FINANCING ACTIVITIES
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Proceeds from Loans
Reduction in Notes Payable (187,500.) (12,500.)
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Net Cash Provided (Used) by Financing Activities (187,500.) (12,500.)
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NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS 50,824. (146,030.)
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CASH AND CASH EQUIVALENTS AT BEGINNING OF PERIOD 141,013. 272,958.
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CASH AND CASH EQUIVALENTS AT END OF PERIOD $ 191,837. $ 126,928.
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</TABLE>
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FIFTH DIMENSION INC.
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NOTES TO FINANCIAL STATEMENTS
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MARCH 31, 1996
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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.
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FIFTH DIMENSION INC.
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PERIOD ENDED MARCH 31, 1996
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PART 1 - ITEM 2
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MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF
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OPERATIONS
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The Registrant reported a net income of $82,145 for the first quarter of 1996 on
sales revenue of $1,335,575. This compares favorably with a 1995 first quarter
loss of $81,830 on sales revenue of $906,561. This significant improvement in
operating income and revenues is a result of production increases in the slip
ring product line. This same area experienced production delays and problems
during the first quarter of 1995, thus reflecting the lower results for that
period. The gross profit improvement for the current quarter is a result of the
revenue increase detailed above and stable manufacturing overhead expenses
during this period. A decline in operating expenses also contributed to the
operating results as reductions were made in marketing and professional
expenses. Interest costs were stable during the quarter while income tax was
provided for based on statutory rates.
The financial condition of the Registrant improved during the quarter as working
capital increased by $134,000. The operating profits and reductions in
inventory balances enabled the company to reduce outstanding loan balances by
$187,500 during the quarter, thus reducing its debt-to-equity ratio from 17% at
December 31, 1995 to 6% at March 31, 1996. The company anticipates continued
debt reduction and increases in cash balances as 1996 progresses. Profitability
is expected to be maintained for the second quarter of the year with declines
projected for the second half of the year as a major slip ring contract begins
to phase down toward its conclusion at the end of 1996. The Registrant
purchased fixed assets of $9,901 during the quarter, while charging $28,750
against the income for depreciation purposes.
No other changes have occurred which would have a material effect on the
liquidity, financial condition or results of operations of the Registrant.
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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)
Dated: By: /s/ Craig Ebner
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Craig Ebner
President
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<ARTICLE> 5
<LEGEND>
This schedule contains summary financial information extracted from Fifth
Dimension Inc. Balance Sheet (Unaudited) as of March 31, 1996, Fifth Dimension
Inc. Statement of Operations and Retained Earnings (Unaudited) for Quarter
ending March 31, 1996, and Fifth Dimension Inc. Statement of Cash Flows
(Unaudited) for Three Months Ended March 31, 1996 and is qualified in its
entirety by reference to such financial statements.
</LEGEND>
<S> <C>
<PERIOD-TYPE> 3-MOS
<FISCAL-YEAR-END> DEC-31-1996
<PERIOD-START> JAN-1-1996
<PERIOD-END> MAR-31-1996
<CASH> 191,837
<SECURITIES> 364,936
<RECEIVABLES> 838,612
<ALLOWANCES> 0
<INVENTORY> 794,418
<CURRENT-ASSETS> 1,895,682
<PP&E> 600,954
<DEPRECIATION> 0
<TOTAL-ASSETS> 2,510,708
<CURRENT-LIABILITIES> 505,351
<BONDS> 0
0
0
<COMMON> 364,936
<OTHER-SE> 1,566,055
<TOTAL-LIABILITY-AND-EQUITY> 2,510,708
<SALES> 1,335,575
<TOTAL-REVENUES> 1,339,873
<CGS> 898,575
<TOTAL-COSTS> 1,208,151
<OTHER-EXPENSES> 0
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 4,771
<INCOME-PRETAX> 126,951
<INCOME-TAX> 44,806
<INCOME-CONTINUING> 0
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 82,145
<EPS-PRIMARY> .08
<EPS-DILUTED> 0
</TABLE>
