<PAGE> 1
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
----------------------
FORM 11-K
(Mark One)
[X] ANNUAL REPORT PURSUANT TO SECTION 15(d) OF THE SECURITIES EXCHANGE
ACT OF 1934
For the fiscal year ended: December 31, 1996,
OR
[ ] TRANSITION REPORT PURSUANT TO SECTION 15(d) OF THE SECURITIES EXCHANGE
ACT OF 1934 [NO FEE REQUIRED]
For the transition period from ________________ to ________________
Commission file number: Not yet assigned
A. Full title of the plan and address of the plan, if different from that of
the issuer named below:
SPARTA, INC. PROFIT SHARING PLAN
B. Name of issuer of the securities held pursuant to the plan and the address
of its principal executive office:
SPARTA, INC.
23041 AVENIDA DE LA CARLOTA, SUITE 325
LAGUNA HILLS, CA 92653-1507
<PAGE> 2
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934,
the trustees (or the other persons who administer the employee benefit plan)
have duly caused this annual report to be signed on the Plan's behalf by the
undersigned, thereunto duly authorized.
SPARTA, INC. PROFIT SHARING PLAN
Date: June 30, 1997 /s/ Jerry R. Fabian
----------------------------------
Jerry R. Fabian, Special Trustee
<PAGE> 3
CONSENT OF INDEPENDENT ACCOUNTANTS
We hereby consent to the incorporation by reference in the Registration
Statement on Form S-8 (No. 33-45915) of the Sparta, Inc. Profit Sharing Plan of
our report dated May 23, 1997 contained in this Report on Form 11-K of the
Sparta, Inc. Profit Sharing Plan for the Plan year 1996.
- ------------------------
WARNICK, MAESTAS & HICK
Costa Mesa, California
June 12, 1997
<PAGE> 4
SPARTA, INC.
PROFIT SHARING PLAN
Financial Statements
For The Years Ended January 3, 1997
And December 29, 1995
Together With Auditor's Report
<PAGE> 5
INDEPENDENT AUDITOR'S REPORT
To The Board of Directors
Sparta, Inc. Profit Sharing Plan
Laguna Hills, California
We have audited the accompanying statements of net assets available for plan
benefits (modified cash basis) of the Sparta, Inc. Profit Sharing Plan as of
January 3, 1997 and December 29, 1995, and the related statements of changes in
net assets available for plan benefits (modified cash basis) for the years then
ended. These financial statements are the responsibility of the Plan's
management. Our responsibility is to express an opinion on these financial
statements based on our audits.
We conducted our audits in accordance with generally accepted auditing
standards. Those standards require that we plan and perform the audit to obtain
reasonable assurance about whether the financial statements are free of material
misstatement. An audit includes examining, on a test basis, evidence supporting
the amounts and disclosures in the financial statements. An audit also includes
assessing the accounting principles used and significant estimates made by
management, as well as evaluating the overall financial statement presentation.
We believe that our audits provide a reasonable basis for our opinion.
As described in Note 6, these financial statements and supplemental schedules
were prepared on a modified cash basis of accounting, which is a comprehensive
basis of accounting other than generally accepted accounting principles.
In our opinion, the financial statements referred to above present fairly, in
all material respects, the net assets available for plan benefits of the Sparta,
Inc. Profit Sharing Plan as of January 3, 1997 and December 29, 1995, and the
changes in net assets available for plan benefits for the years ended January 3,
1997 and December 29, 1995, on the basis of accounting described in Note 6.
Our audits were conducted for the purpose of forming an opinion on the basic
financial statements taken as a whole. The supplemental schedules (modified cash
basis) of assets held for investment purposes and transactions in excess of 5%
of the current value of plan assets are presented for purpose of additional
analysis and are not a required part of the basic financial statements but are
supplementary information required by the Department of Labor's Rules and
Regulations for Reporting and Disclosure under the Employee Retirement Income
Security Act of 1974. The supplemental schedules have been subjected to the
auditing procedures applied in the audits of the basic financial statements and,
in our opinion, are fairly stated in all material respects in relation to the
basic financial statements taken as a whole.
WARNICK, MAESTAS & HICK
COSTA MESA, CALIFORNIA
May 23, 1997
<PAGE> 6
SPARTA, INC. PROFIT SHARING PLAN
STATEMENTS OF NET ASSETS AVAILABLE FOR PLAN BENEFITS
ASSETS
<TABLE>
<CAPTION>
January 3, December 29,
1997 1995
----------- ------------
<S> <C> <C>
INVESTMENTS, at fair value (Note 2):
Corporate stocks (Notes 4 and 5) $15,634,729 $12,120,934
Mutual funds 5,502,701 4,290,586
Government securities 108,287 156,050
Limited partnership interests 97,786 117,287
Commodities 343 377
Bonds -0- 82,675
----------- -----------
Total investments 21,343,846 16,767,909
----------- -----------
RECEIVABLES:
Contribution from Sparta, Inc. (Note 1) 364,448 393,308
Notes receivable from participants (Note 2) 1,290,931 1,169,273
Accrued interest receivable 27,672 21,453
Employee contribution to 401(k) plan (Note 1) 45,685 73,981
Other assets -0- 8,179
----------- -----------
Total receivables 1,728,736 1,666,194
----------- -----------
CASH (Note 2) 7,467,466 6,703,802
----------- -----------
NET ASSETS AVAILABLE FOR PLAN BENEFITS $30,540,048 $25,137,905
=========== ===========
</TABLE>
THE ACCOMPANYING FOOTNOTES ARE AN INTEGRAL
PART OF THESE STATEMENTS
<PAGE> 7
SPARTA, INC. PROFIT SHARING PLAN
STATEMENTS OF CHANGES IN NET ASSETS
AVAILABLE FOR PLAN BENEFITS
FOR THE YEARS ENDED JANUARY 3, 1997 AND DECEMBER 29, 1995
<TABLE>
<CAPTION>
January 3, December 29,
1997 1995
----------- ------------
<S> <C> <C>
ADDITIONS:
Contributions -
Sparta, Inc. (Note 5) $ 2,661,231 $ 2,698,248
Employees (Note 1) 604,001 419,860
Interest and dividend income 844,662 748,062
----------- -----------
Total additions 4,109,894 3,866,170
----------- -----------
DEDUCTIONS:
Benefits paid to participants 2,223,673 1,858,474
Administration expenses 89,083 88,764
----------- -----------
Total deductions 2,312,756 1,947,238
----------- -----------
NET REALIZED AND UNREALIZED APPRECIATION
IN FAIR VALUE OF INVESTMENTS (Note 2) 3,605,005 1,545,261
----------- -----------
NET ADDITIONS 5,402,143 3,464,193
NET ASSETS AVAILABLE FOR BENEFITS,
at beginning of year 25,137,905 21,673,712
----------- -----------
NET ASSETS AVAILABLE FOR BENEFITS,
at end of year $30,540,048 $25,137,905
=========== ===========
</TABLE>
THE ACCOMPANYING FOOTNOTES ARE AN INTEGRAL
PART OF THESE STATEMENTS
<PAGE> 8
SPARTA, INC. PROFIT SHARING PLAN
NOTES TO FINANCIAL STATEMENTS
FOR THE YEARS ENDED JANUARY 3, 1997 AND DECEMBER 29, 1995
(1) Description of the Plan -
The profit sharing plan of Sparta, Inc., (the Plan) is a contributory
defined contribution plan that covers substantially all employees and provides
for retirement and disability benefits. The Plan is subject to the provisions of
the Employee Retirement Income Security Act of 1974. Employer contributions are
allocated to participants based on relative eligible compensation. However,
employees with less than three (3) years of service are allocated a lesser
percentage. The Plan provides for immediate eligibility and 100 percent vesting
for all employees who complete more than 1,000 hours of service within the plan
year. In addition, the Plan provides for separate, segregated accounts for
substantially all participants. Each participant with a segregated account
directs the investment activity of such segregated account. In addition, the
participants may use the funds in their accounts to purchase shares of Sparta,
Inc. stock.
The amount of the annual contribution to the Plan is determined by the
Board of Directors of Sparta, Inc., (the Company) at its discretion. The
Company's contribution to the Plan each year may be made in the form of Sparta,
Inc. stock, cash or both at the discretion of the Board of Directors.
Matching contributions may be made on behalf of certain employees of
Sparta, Inc. at the discretion of the Board of Directors. These employees may
elect to make pre-tax contributions to the Plan ("401(k) deferrals") under
Section 401(k) of the Internal Revenue Code.
The Plan's investments are held in the name of a trust company. An
officer of the Company is the trustee with respect to Sparta, Inc. securities
held by the Plan. Delaware Charter Guarantee & Trust Co. is the trustee of the
Plan.
(2) Significant Accounting Policies -
(a) Accounting Periods Presented -
The Plan operates on a 52/53 week fiscal year. In 1996 and
1995 the Plan's fiscal year ended on the Friday nearest to December 31.
The periods presented in these financial statements are the fiscal
years ended January 3, 1997 and December 29, 1995.
(b) Valuation of Investments -
Corporate stocks, mutual funds, government securities, and
bonds are stated at aggregate fair value. Securities traded on a
national securities exchange are valued at the latest reported sales
price on the last business day of December; investments traded on the
over-the-counter market and listed securities for which no sale was
reported on that date are valued at the average of the last reported
bid and asked prices.
SEE INDEPENDENT AUDITOR'S REPORT
<PAGE> 9
Stock investments in the employer corporation are valued using
a quarterly adjusted formula which is used in all transactions
affecting Sparta, Inc. stock. The value at January 3, 1997 was $5.35
per share based upon the quarterly adjusted formula calculation as of
October 21, 1996.
An independent valuation firm determined that the stock
valuation (using the quarterly adjusted formula) was a proper
reflection of the fair market value at the valuation date of April 21,
1996. The stock value as determined by the independent valuation firm
was $4.48 at April 21, 1996 and was consistent with the value as
previously computed using the quarterly adjusted formula.
The fair value of the commodities were based on the average
price traded on the market on the last business day of the plan year.
The fair value of the limited partnership interests were based
on the estimated fair value of their underlying assets.
Investments greater than or equal to 5% of plan assets are:
<TABLE>
<CAPTION>
January 3, 1997 December 29, 1995
---------------------- ----------------------
Principal Principal
Amount or Amount or
Number of Fair Number of Fair
Shares Value Shares Value
--------- ----------- --------- -----------
<S> <C> <C> <C> <C>
Company Stock 2,524,748 $13,507,402 2,465,246 $10,329,381
Paine Webber
Money Funds 6,977,584 $ 6,977,584 6,277,881 $ 6,277,881
</TABLE>
During the plan year, the Plan's investments (including
investments bought, sold and held during the year) appreciated in value
by $3,605,005 and $1,545,261 for the years ended January 3, 1997 and
December 29, 1995, as follows:
<TABLE>
<CAPTION>
January 3, December 29,
1997 1995
----------- ------------
<S> <C> <C>
Corporate stock $ 3,208,942 $ 940,677
Mutual Funds 386,934 554,170
Government Securities 1,760 35,285
Limited Partnership Interests (1,448) (10,740)
Commodities (35) 25
Bonds 8,852 25,844
----------- -----------
$ 3,605,005 $ 1,545,261
=========== ===========
</TABLE>
SEE INDEPENDENT AUDITOR'S REPORT
<PAGE> 10
The Plan places a substantial portion of its assets with Paine
Webber a broker/dealer that is custodian for most investments of the
Plan. Among them are the $6,977,584 of temporary cash investments
consisting principally of money market funds that are potentially
subject to risk because a substantial portion is not insured by the
Securities Investors Protection Corporation. The Plan administrator and
Company management do not believe that the Plan is at risk and that no
significant loss will occur.
(c) Plan Expenses -
The company absorbs a significant portion of plan expenses
incurred for the administration and management of the Plan.
Administrative fees are deducted from the account of each participant.
(d) Plan Termination -
Although it has not expressed any intent to do so, the Company
has the right under the Plan to discontinue its contributions at any
time and to terminate the Plan subject to the provisions of ERISA. In
the event of Plan termination, the net assets of the Plan will be
allocated to the participants in accordance with the terms of the Plan.
(e) Participant Loans -
Pursuant to the Plan, loans are available to eligible
participants, bear interest at a fair market value, require adequate
security, and require repayment over a reasonable period of time. All
loans made are in compliance with Internal Revenue Code Section 72.
(f) Plan Benefits -
A participant becomes eligible to receive a retirement benefit
payment equal to 100% of his or her vested account balance upon
reaching normal retirement age. The Plan also provides for death,
disability and termination benefits, as defined.
The method of payment shall be a lump-sum distribution of cash
except to the extent that the participant elects to have his benefits
distributed in kind.
(g) Estimates -
The preparation of financial statements in conformity with
generally accepted accounting principles requires the plan
administrator to make estimates and assumptions that affect certain
reported amounts and disclosures. Accordingly, actual results may
differ from those estimates.
(3) Income Tax Status -
The Internal Revenue Service has determined and informed the Company by
letter dated January 4, 1996, that the Plan and related trust are designed in
accordance with applicable sections of the Internal Revenue Code (IRC). The Plan
has not been amended since receiving the determination letter.
SEE INDEPENDENT AUDITOR'S REPORT
<PAGE> 11
(4) Related Party Transactions -
The Plan was amended, effective October 1, 1987, to allow the Plan to
purchase employer securities. During the Plan years ended January 3, 1997 and
December 29, 1995, the Plan purchased 83,857 and 96,112 shares of the Company,
respectively, at prices ranging from $5.35 to $3.84 per share. In addition,
during the Plan years ended January 3, 1997 and December 29, 1995, the Plan sold
298,890 and 248,756 shares of the Company, respectively, at prices ranging from
$5.35 to $3.84 per share.
(5) Employer Contributions -
For the year ended January 3, 1997, total contributions made by the
employer of $2,661,231 were comprised of 274,535 shares of the Company Stock
valued at $1,319,098, with per share prices ranging from $5.35 to $3.84, and
cash contributions of $1,342,134.
For the year ended December 29, 1995, total contributions made by the
employer of $2,698,248 were comprised of 325,490 shares of the Company Stock
valued at $1,302,325 with per share prices ranging from $3.84 to $4.19 and cash
contributions of $1,395,923.
(6) Basis of Accounting -
The plan's financial statements are presented using the modified cash
basis of accounting in order to conform to the accounting method employed by the
trustee and the plan administrator.
Under the modified cash basis of accounting expenses are recorded when
paid and investment gains and losses are computed under the "revalued method."
(7) Benefit Claims Payable -
Net assets available for benefits at January 3, 1997 include $6,653,484
allocated to the accounts of participants who, as of or prior to that date, had
terminated employment and either remained in the Plan as allowed under the Plan
provisions or withdrew completely from participating in the earnings and
operations of the Plan.
SEE INDEPENDENT AUDITOR'S REPORT
<PAGE> 12
(8) SPARTA, INC. PROFIT SHARING PLAN
TRANSACTIONS OR SERIES OF TRANSACTIONS
IN EXCESS OF 5% OF PLAN ASSETS
FOR THE YEAR ENDED JANUARY 3, 1997
<TABLE>
<CAPTION>
Principal
Amount or
Number of Purchase Selling Cost Gain
Shares Price Price (Note 6) (Note 6)
--------- ---------- ---------- ---------- ---------
<S> <C> <C> <C> <C> <C>
SPARTA, INC. STOCK
Purchases 83,857 $403,883
Sales 298,890 $1,404,179 $1,252,390 $151,789
</TABLE>
SEE INDEPENDENT AUDITOR'S REPORT
<PAGE> 13
SPARTA INC. PROFIT SHARING PLAN
-------------------------------
FAIR MARKET VALUE OF TRUST ASSETS
---------------------------------
Plan Year Ended January 3, 1997
-------------------------------
<TABLE>
<CAPTION>
DESCRIPTION UNITS COST CURRENT VALUE
- ---------------------------------------------------------------------------------------
<S> <C> <C> <C>
COMMODITIES
Citibank Silver 73.280 1,000.00 342.61
Certificate
----------
342.61
GOVERNMENT SECURITIES
CTR 15 MAY 0% 4240.000 1,328.18 3,253.05
TINT due 05-15-97 33000.000 14,996.52 32,363.43
GNM P207206Z 150000.000 5,354.99 2,576.00
CTR 11-15-07 142039.000 26,095.59 70,094.21
----------
108,286.69
LIMITED PARTNERSHIPS
Balcor Pension Investors 10.000 5,000.00 2,669.00
CNL Income V, Ltd 6.000 3,000.00 2,994.00
Ledccor Properties 10000.000 20,000.00 28,679.00
Ledcor Properties 2500.000 5,000.00 7,166.00
Ledcor Properties 2500.000 5,000.00 7,166.00
Realty Income III 60.000 15,000.00 11,937.31
RIC 25, Ltd 118.000 3,000.00 2,817.25
Swift Energy 30.000 30,000.00 30,000.00
Windsor Park Properties 5 150.000 4,762.25 4,357.67
----------
97,786.23
</TABLE>
SEE INDEPENDENT AUDITOR'S REPORT
<PAGE> 14
SPARTA INC. PROFIT SHARING PLAN
-------------------------------
FAIR MARKET VALUE OF TRUST ASSETS
---------------------------------
Plan Year Ended January 3, 1997
-------------------------------
<TABLE>
<CAPTION>
DESCRIPTION UNITS COST CURRENT VALUE
- -----------------------------------------------------------------------------------------
<S> <C> <C> <C>
MUTUAL FUNDS
AIM Capital Development 308.000 3,496.40 3,572.80
AIM Charter Equity 5803.701 64,125.66 64,246.97
AIM Constellation Fund 720.180 17,353.24 18,191.84
Aim Eq Weingarten Fund 332.297 4,315.07 6,150.82
Aim Equity Constellation Fd 84.739 2,060.00 2,140.51
Aim Value Fund 2155.560 59,358.21 62,435.39
Alliance Worldwide 2593.872 26,947.92 29,206.99
Privitization
American Balanced Fund 163.068 1,945.04 2,372.63
American Mutual Funds Inc. 3663.484 61,827.05 94,371.31
Artisan Small Cap Fund 1157.316 16,146.99 15,785.79
Berger 100 Growth Fund 449.743 6,079.08 8,018.92
Berger 101 Fund 1006.498 11,625.36 13,386.42
Bond Fund of America 18047.513 222,378.19 248,153.14
Brandywine Fund 832.966 26,085.21 28,062.62
Capital World & Growth 2164.584 33,868.71 49,720.50
Colonial Newport Tiger 72.635 1,005.15 998.73
Columbia Special Fund 1140.693 14,090.84 22,642.76
Crabbe Huson Special 362.927 5,164.30 5,200.74
Dean Witter Dev Growth 446.465 10,041.00 10,134.75
Dean Witter Dividend 479.258 20,612.05 21,360.52
Growth
Dean Witter Value Added 811.715 17,685.67 23,141.99
Fund
Delaware Cap Concept 1 56.147 1,162.73 1,456.45
Fund
DW Global Div Growth 1432.588 15,932.05 19,010.45
Eaton Vance Trad Greater 643.384 4,614.13 3,898.90
India
Eaton Vance Trad 2060.590 26,200.80 28,024.02
Worldwide Health
EBI SER TR Flex Fund 4421.235 133,477.12 294,056.34
EuroPacific Growth Fund 2175.318 34,348.09 56,645.27
Evergreen Growth & Income 859.213 13,559.41 19,375.25
Federated Equity Inc 420.996 4,655.48 6,453.87
Fund/Liberty
Federated Growth Trust 337.386 5,855.77 8,279.45
Fidelity Advisor Equity 202.626 8,618.91 8,512.32
Grow
Fidelity Advisor Growth 2229.285 68,498.93 78,693.76
Opp
Fidelity Asset Manager Fd 743.099 10,956.18 12,238.84
Fidelity Capital & Income 560.466 4,463.68 5,245.96
Fund
Fidelity Contrafund 1617.784 50,327.59 68,189.42
Fidelity Conv Sec Fund 1121.118 15,943.32 19,686.83
Fidelity Diversified Intl 368.548 4,181.53 5,421.34
Fund
Fidelity Dividend Growth 496.758 9,218.82 9,979.87
Fidelity Emerging Growth 145.327 2,585.58 3,660.79
Fidelity Emerging Mkts 1544.498 27,011.77 25,669.56
</TABLE>
SEE INDEPENDENT AUDITOR'S REPORT
<PAGE> 15
SPARTA INC. PROFIT SHARING PLAN
-------------------------------
FAIR MARKET VALUE OF TRUST ASSETS
---------------------------------
Plan Year Ended January 3, 1997
-------------------------------
<TABLE>
<CAPTION>
DESCRIPTION UNITS COST CURRENT VALUE
- ------------------------------------------------------------------------------------------
<S> <C> <C> <C>
Fidelity Equity Income II 885.976 17,204.63 21,041.93
Fidelity Growth & Income 177.379 2,768.73 5,450.85
Fidelity Growth Fund 136.646 5,219.11 5,528.70
Fidelity Magellan 97.109 6,494.03 7,831.84
Fidelity Midcap Fund 450.572 5,544.92 6,596.37
Fidelity OTC Portfolio 502.691 13,092.65 16,443.02
Fidelity Port Grow & 836.504 17,091.56 25,705.77
Income
Fidelity Select Tech 87.299 2,422.64 4,860.80
Fidelity Smallcap Stock 312.716 3,036.35 4,240.42
Fidelity Stock Selector 252.884 5,611.50 6,031.28
Franklin Templeton 304.458 4,240.16 4,649.07
Develop Mkt
Fundamental Investors Inc 665.492 13,785.20 16,331.17
Gabelli Small Cap Growth 1191.010 16,082.27 22,084.24
Growth Fund of America 11684.119 124,836.68 193,605.82
GT Communications A 130.604 2,275.02 2,029.58
GT Communications B 283.000 5,017.59 4,301.60
GT Global Emerging Mkt 739.756 12,817.91 10,556.32
GT Global Grow & Income 5027.158 23,988.76 37,251.22
GT Global Strategic Income 853.376 7,082.62 10,334.38
GT Global Strategic Income 132.993 1,109.77 1,610.55
GT Global Telecomm 886.131 13,953.71 13,469.19
GT Global Telecomm A 308.171 5,413.23 4,788.97
GT Telecommunications 130.351 2,185.98 2,025.65
Guiness Flight China & 208.385 3,110.68 3,690.50
Hogn Kong
Harbor Cap Apprec Fund 588.608 11,561.80 15,498.05
IDS Blue Chip Advantage 111.973 952.53 945.72
IDS Extra Income Fund 213.299 931.56 934.24
IDS Federal Income Fund 3072.203 16,198.84 15,309.33
IDS Global Growth 138.177 991.71 917.50
IDS Growth Fund 35.189 937.84 938.81
IDS New Dimensions Fund 478.352 10,519.74 9,894.10
IDS Research Opportunities 172.064 915.31 929.66
IDS Small Company Fund 175.165 918.01 950.62
IDS Strategy Aggressive 45.209 962.85 901.24
Fund
Income Fund of America 458.575 7,440.72 7,575.65
International Investors 966.652 5,690.23 11,570.83
Invesco Industrial Income 570.605 5,712.44 7,680.34
Investment Co America 46442.827 833,782.85 1,125,094.96
Janus 20 Fund 720.510 16,816.98 19,792.41
Janus Fund 2690.270 56,129.37 65,777.10
Janus Mercury Fund 900.545 16,912.93 14,877.00
Janus Overseas Fund 806.030 11,110.17 12,267.78
</TABLE>
SEE INDEPENDENT AUDITOR'S REPORT
<PAGE> 16
SPARTA INC. PROFIT SHARING PLAN
-------------------------------
FAIR MARKET VALUE OF TRUST ASSETS
---------------------------------
Plan Year Ended January 3, 1997
-------------------------------
<TABLE>
<CAPTION>
DESCRIPTION UNITS COST CURRENT VALUE
- ----------------------------------------------------------------------------------------
<S> <C> <C> <C>
Janus Twenty Fund 538.075 17,532.61 14,780.92
Janus Venture Fund 385.588 16,097.90 20,459.30
Janus Worldwide Fund 4039.384 95,666.24 136,086.84
Japan Fund 253.376 2,877.71 2,110.62
Kaufmann Fund 8438.894 33,216.18 49,283.13
Longleaf Partners Fund 595.612 11,469.73 13,609.73
MFS Emerging Growth 790.836 20,645.56 23,677.63
Midas Fund 1015.218 5,526.36 5,228.37
ML Developing Cap Mkts 1041.242 10,400.35 15,129.25
ML Equity Income Fund I 3773.140 2,980.61 3,999.53
ML Global Allocation Fund 525.448 6,109.92 7,545.43
ML Growth Fund 734.074 14,079.73 17,823.32
ML Senior Floating Fund 1621.188 11,003.06 16,163.24
Mutual Beacon Fund 367.532 12,041.32 14,315.37
Mutual Discovery Fund 625.011 10,828.10 10,737.69
Neuberger & Berman 1163.099 24,091.67 29,810.23
Guardian Fund
Neuberger Berman Focus 482.908 11,862.69 14,883.22
New Economy Fund 1121.297 15,985.82 19,039.62
New Perspective Fund 4568.526 50,020.33 83,010.11
Nicholas-Applegate Growth 278.207 2,883.20 4,287.16
Oakmark Funds 1651.224 43,559.28 53,449.44
Oppenheimer Total Return 1365.732 10,997.52 13,343.20
PBHG Growth Fund 159.236 4,000.00 4,183.13
Phoenix Capital Apprec Fd 510.423 7,274.72 9,453.03
Phoenix SBI Balanced Fund 610.846 7,999.05 9,706.34
Phoenix SBI Growth Fund 526.609 9,778.97 12,201.52
Phoenix Smallcap Fund 1764.124 31,324.32 30,501.69
Phoenix Strategic Theme 5099.308 65,131.56 64,200.27
Pioneer Capital Growth 512.839 10,463.41 10,215.75
Pioneer II Fund 1383.959 9,731.68 29,796.64
Putnam Asset Alloc Growth 445.651 4,651.26 4,969.00
Putnam Health Science 372.892 9,156.05 17,238.80
Putnam New Opportunities A 125.337 1,906.78 5,092.44
Putnam New Opportunities B 111.940 3,651.38 4,422.74
Putnam New Opportunity 348.216 15,954.97 14,148.00
Putnam Voyager Fund 2662.085 26,954.23 41,075.97
PW Balanced Fund 3195.871 33,111.45 33,908.19
PW Financial Serv Growth 290.884 5,904.32 6,632.15
PW Growth & Income 1575.290 33,915.95 38,389.81
PW Growth Fund 1504.076 31,359.87 36,458.80
Quest For Value Dual Fund 200.000 2,696.58 7,225.00
Rainier Small Midcap 710.771 11,206.79 13,348.28
Equity
</TABLE>
SEE INDEPENDENT AUDITOR'S REPORT
<PAGE> 17
SPARTA INC. PROFIT SHARING PLAN
-------------------------------
FAIR MARKET VALUE OF TRUST ASSETS
---------------------------------
Plan Year Ended January 3, 1997
-------------------------------
<TABLE>
<CAPTION>
DESCRIPTION UNITS COST CURRENT VALUE
- --------------------------------------------------------------------------------------
<S> <C> <C> <C>
Robertson Stephen Value 0.033 0.82 0.80
Fund
Schwab 1000 Fund 69.703 1,180.77 1,417.76
Scudder Emerging Mkts Fd 127.586 1,266.37 1,566.76
Scudder Growth & Income 66.284 1,209.16 1,539.78
Select 10 Spring 1996 Fund 1764.000 1,764.00 1,926.28
Seligman Comm & Info 1071.630 24,039.43 25,151.15
Seligman Income Fund 722.629 9,289.45 10,832.21
Smallcap World Fund 30958.620 605,686.97 792,849.89
Sogen Intl Fund 881.708 19,987.46 23,003.77
T Rowe Price Equity 285.577 5,406.49 6,436.91
T Rowe Price Intl Stock 444.434 5,078.87 6,133.19
T Rowe Price Midcap Growth 462.444 10,826.88 11,297.51
T Rowe Price New Asia 618.590 4,964.34 5,728.14
T Rowe Price New Horizon 397.062 8,585.96 8,644.04
T. Rowe Price Eur Stock 637.984 6,429.88 11,241.28
Fund
TCW DW Core Equity Trust 1263.854 12,949.46 19,791.95
TCW DW Latin America 103.870 891.20 1,087.51
Growth
Templeton Calif Growth 164.985 3,027.45 3,372.29
Templeton Global 409.853 5,600.81 5,992.05
Opportunity
Templeton Growth 2610.390 20,104.36 51,007.10
Templeton World Fund 3349.995 24,602.48 55,425.87
Turner Smallcap Fund 476.214 10,238.61 10,410.04
Tweedy Browne Global Value 282.019 3,293.78 4,075.17
Twen Cent Intl Equity 4362.520 26,574.94 34,725.66
Twentieth Cent Ultra Fund 401.664 8,487.45 11,282.74
United Services World Gold 745.692 15,802.89 14,287.46
UTS Equity Inc Fund 10209.000 10,236.72 12,506.03
Van Wagoner Midcap 712.758 10,000.00 8,831.07
Vanguard Explorer 453.902 14,705.92 24,433.54
Vanguard Index 500 88.217 5,128.01 6,101.09
Portfolio
Vanguard Total Stock 4820.433 59,897.49 85,659.09
Portfolio
Vanguard Wellington Fund 1363.876 24,151.49 35,665.36
Vanguard Windsor II 1132.535 15,634.00 26,988.31
Washington Mutual Fund 3065.984 52,982.28 75,239.23
------------
5,502,701.34
</TABLE>
SEE INDEPENDENT AUDITOR'S REPORT
<PAGE> 18
SPARTA INC. PROFIT SHARING PLAN
-------------------------------
FAIR MARKET VALUE OF TRUST ASSETS
---------------------------------
Plan Year Ended January 3, 1997
-------------------------------
<TABLE>
<CAPTION>
DESCRIPTION UNITS COST CURRENT VALUE
- --------------------------------------------------------------------------------------
<S> <C> <C> <C>
CORPORATE STOCK
Adtran Inc 1754.000 43,987.29 72,791.00
Advanced Micro Systems 100.000 1,365.26 2,575.00
Advanced NMR Systems 500.000 1,341.30 125.00
Advanced Tissue Sciences 700.000 8,807.97 6,694.10
Airtouch Communications 295.000 7,861.40 7,448.75
Albertsons Inc 200.000 7,158.00 7,125.00
Allegiance Corp 2350.000 44,356.25 64,918.75
Allsate Corp 92.000 3,500.00 5,324.50
Amax Gold Inc 1000.000 11,441.62 6,375.00
AMDL Inc 5000.000 7,127.85 1,875.00
Amgen Inc 200.000 9,770.00 10,875.00
Ampex Corp 200.000 1,534.45 1,875.00
Apache Corp 300.000 8,757.41 10,537.50
Apple Computer 600.000 11,278.47 12,525.00
Archer Daniels Midland 27.000 565.35 594.00
Armco, Inc. 850.000 10,223.38 3,506.25
Ashland Inc 100.000 3,620.38 4,387.50
AST Research Inc 400.000 3,477.44 1,675.20
AT&T Corp 50.000 4,192.34 2,168.75
Auspex Systems 200.000 2,553.64 2,325.00
Azco Mining Co 1400.000 4,045.34 1,925.00
Battle Mountain 296.000 2,248.68 2,051.87
Battle Mountain Gold 2200.000 24,049.71 15,125.00
Bay Networks Inc 400.000 14,591.75 8,400.00
Bema Gold Corp 3000.000 11,409.97 17,814.00
Bethlehem Steel Corp 658.000 6,279.40 5,911.62
BGR Precious Metals Inc 750.000 8,114.55 9,357.75
Biopore Inc. 500.000 500.00 --
BKC Semiconductors Inc 800.000 14,371.07 1,200.00
Boeing Company 200.000 9,825.11 21,300.00
Boston Scientific 55.000 994.73 3,300.00
Bristol Myers 25.000 1,565.35 2,725.00
Bristol Myers Squibb 200.000 12,975.24 21,800.00
Cable & Wireless PLC 400.000 8,022.43 9,850.00
Callaway Golf 25.000 594.70 718.75
Cedar Fair LP 100.000 3,299.32 3,687.50
Cel SCI Corp 10.000 40.60 42.50
Centocor Inc 100.000 5,566.28 3,575.00
Cerplex Group Inc 200.000 1,533.75 200.00
Champion Intl 100.000 5,802.17 4,325.00
</TABLE>
SEE INDEPENDENT AUDITOR'S REPORT
<PAGE> 19
SPARTA INC. PROFIT SHARING PLAN
-------------------------------
FAIR MARKET VALUE OF TRUST ASSETS
---------------------------------
Plan Year Ended January 3, 1997
-------------------------------
<TABLE>
<CAPTION>
DESCRIPTION UNITS COST CURRENT VALUE
- --------------------------------------------------------------------------------------
<S> <C> <C> <C>
Chase Manhattan 20.000 670.00 1,787.50
Chiron Corp 120.000 3,041.60 2,235.00
Cifra C Copn 8694.000 7,906.80 10,597.99
Cirrus Logic Inc 725.000 14,810.68 11,237.50
Cisco Systems 175.000 10,222.03 11,134.37
Coca Cola Co 1401.000 50,519.32 73,727.62
Coeur D Alene Mines 500.000 6,168.60 7,562.50
Columbia Gas System 100.000 5,572.00 6,362.50
Compania de Telefonos de 25.000 3,321.60 2,528.12
Chile
Compression Labs Inc 2500.000 50,517.02 9,532.50
Compucom Systems Inc* 100.000 970.67 1,075.00
Contl American Transn Inc 1550.000 2,606.23 1,937.50
Core Inc Mass 200.000 2,292.83 1,750.00
Coventry Corp* 45.000 996.48 416.97
Cubic Corp 300.000 3,927.46 6,937.50
Cybex Corp 100.000 2,662.32 1,425.00
Cypress Semiconductor 150.000 2,220.62 2,118.75
Cyprus Amax Minerals 1200.000 19,210.70 28,200.00
Daimler Benz 225.000 10,695.91 15,412.50
Daka Intl 300.000 2,992.78 2,887.50
Delta Petroleum Corp 440.000 3,225.95 2,062.72
Devon Energy Corp 200.000 5,357.05 6,950.00
Disney Walt 100.000 5,662.00 6,975.00
Disney Walt Holding 255.000 15,235.85 17,786.25
DSC Communications 200.000 6,665.31 3,575.00
Duke Power Co 41.000 987.85 1,896.25
Dusa Pharmaceuticals 3.000 -- 21.00
Eagle Telephonics Inc 1000.000 2,686.52 100.00
Earthgrains Co 1450.000 47,177.90 75,762.50
Eastman Chemical 85.000 -- 4,696.25
Eastman Kodak Co. 540.000 27,177.11 43,335.00
Edison Intl 500.000 8,477.18 9,937.50
El Callao Mining Corp 1000.000 1,559.50 955.00
El Misti Gold Ltd 4400.000 16,306.55 15,250.40
EMC Corp Mass 340.000 6,509.18 11,262.50
Ensco Intl 200.000 6,196.00 9,700.00
Ericsson L M Tel 152.000 2,410.73 4,588.57
Exxon Corp 25.000 1,139.11 2,450.00
Federal Natl Mtge Assoc 200.000 5,827.17 7,525.00
First Australia Fund Inc 204.000 1,827.38 1,772.35
First Silver Reserve* 1000.000 350.00 --
Fletcher Challenge Bldg 21.000 506.62 637.87
</TABLE>
SEE INDEPENDENT AUDITOR'S REPORT
<PAGE> 20
SPARTA INC. PROFIT SHARING PLAN
-------------------------------
FAIR MARKET VALUE OF TRUST ASSETS
---------------------------------
Plan Year Ended January 3, 1997
-------------------------------
<TABLE>
<CAPTION>
DESCRIPTION UNITS COST CURRENT VALUE
- -------------------------------------------------------------------------------------
<S> <C> <C> <C>
Fletcher Challenge Energy 21.000 448.87 606.37
Fletcher Challenge Paper 42.000 777.00 855.75
Div
Food Lion Inc 112.000 1,586.01 1,095.47
Ford Motor Co 1315.000 40,424.68 42,408.75
Franklin Universal Trust 500.000 4,847.97 4,562.50
Freeport McMoran Copper & 240.000 6,810.82 7,680.00
Gold
Freeport McMoran Resources 400.000 8,877.60 6,850.00
General Amer Inv Co 674.000 7,307.57 14,154.00
General Electric Co 400.000 19,336.94 39,550.00
Glamis Gold Ltd 200.000 1,686.95 1,400.00
Grupo Televisa SA de Cv 545.000 10,689.43 13,965.62
Global
GTE Corp 300.000 10,185.60 13,612.50
GVC Venture Corp 2000.000 2,404.35 20.00
Harken Energy Corp 1000.000 2,539.50 3,000.00
Harley Davidson Inc 70.000 2,001.83 3,290.00
Health Management Inc 100.000 1,787.50 87.50
Hecla Mining 500.000 6,021.73 2,812.50
Heinz HJ Co 50.000 4,046.87 1,787.50
Helisys Inc 500.000 3,660.24 1,125.00
Helix Technology 50.000 2,002.53 1,450.00
Hemisphere Biopharma 1000.000 2,188.00 2,250.00
Hemisphere Biopharma 1000.000 -- 688.00
Warrants
Hewlett Packard 200.000 7,892.40 10,050.00
Hi-Lo Automotive Inc 1800.000 5,493.00 4,500.00
Hong Kong 300.000 1,787.37 4,875.00
Telecommunications
Horizon Resources Corp 63.000 735.22 0.06
IBM 220.000 19,827.68 33,330.00
IBP Inc 200.000 1,752.00 4,850.00
Intel Corp 452.000 19,179.12 59,183.97
Intergraph Corp 1200.000 14,449.00 12,300.00
Intermagnetics Genl Corp 714.000 15,329.94 8,568.00
Intl Game Tech 101.755 2,188.21 1,857.03
Intuit 150.000 6,785.77 4,725.00
Iomega Corp 800.000 14,725.03 13,900.00
Itron Inc 100.000 2,585.89 1,775.00
Johnson & Johnson 20.000 599.10 995.00
K Mart Corp 1513.962 15,408.86 15,707.35
Koo Koo Roo Inc 200.000 1,406.09 1,500.00
L M Ericsson Tele 65.000 1,500.04 1,962.22
L.A. Gear Inc. 140.000 3,102.40 280.00
Lakehead Pipeline 55.000 774.73 1,897.50
Lasertechnics Inc 400.000 1,554.50 462.40
</TABLE>
SEE INDEPENDENT AUDITOR'S REPORT
<PAGE> 21
SPARTA INC. PROFIT SHARING PLAN
-------------------------------
FAIR MARKET VALUE OF TRUST ASSETS
---------------------------------
Plan Year Ended January 3, 1997
-------------------------------
<TABLE>
<CAPTION>
DESCRIPTION UNITS COST CURRENT VALUE
- -------------------------------------------------------------------------------------
<S> <C> <C> <C>
Lehman Bros Holdings 600.000 8,475.00 18,825.00
Leucadia Natl Corp 185.000 5,145.63 4,948.75
LM Ericsson Tele Co 680.000 9,926.60 20,527.84
Logic Works Inc 200.000 2,096.18 1,125.00
Lucent Technologies 116.000 3,873.85 5,365.00
MAIC Holdings 138.000 4,776.63 4,674.75
Mapinfo Inc 150.000 3,449.50 1,668.75
Matrasell Corp 9000.000 970.77 --
McDonalds Corp 350.000 20,124.04 15,881.25
Medpartners Inc 605.000 9,062.50 12,553.75
Medtronic Inc 100.000 5,614.67 6,800.00
Merck & Co 775.000 26,174.24 61,681.25
Mercury General Corp 100.000 4,451.50 5,250.00
Mesa Offshore Trust 4000.000 10,221.90 1,000.00
Microchip Technology 200.000 3,932.21 10,175.00
Micron Technology 95.000 3,087.48 2,766.87
Microsoft Corp 870.000 41,929.85 71,883.75
Mid-States PLC 800.000 6,200.00 4,000.00
Millicom Intl Cellular 200.000 7,756.52 6,425.00
Mink Mineral Resources 200.000 449.37 269.80
Morgan Stanley Emrg Mkt 3600.000 40,500.00 54,450.00
Motorola Inc 910.000 47,771.70 55,737.50
New Germany Fund 120.000 1,519.49 1,605.00
New Plan Realty Trust 200.000 4,543.92 5,075.00
Newmont Mining Corp 200.000 9,221.32 8,950.00
Niagara Mohawk Power* 300.000 5,592.52 2,962.50
Nichols Research 150.000 2,892.34 3,825.00
Noise Cancellation Tech 700.000 1,748.18 284.20
Noram Energy 1000.000 9,513.73 15,500.00
Occidental Petroleum 200.000 5,224.18 4,675.00
Octel Communications 1000.000 15,626.75 17,500.00
Oracle Corp 250.000 8,280.54 10,437.50
Oroperu Resources 1000.000 1,209.50 769.00
Oryx Energy Company 200.000 2,857.75 4,950.00
Pac Snax Corp 440.000 777.01 4.40
Pacific Telesis Group 103.000 4,177.93 3,785.25
Pegasus Gold Inc 600.000 4,535.52 4,537.80
Pennsylvania Engineering 5.000 0.31 0.05
Pepsico Inc 160.000 5,013.40 4,680.00
Petrie Stores Corp 11700.000 32,312.50 30,712.50
Philip Morris Cos 40.000 2,122.85 4,520.00
Philips Electronics 100.000 3,159.88 4,000.00
Netherlands
</TABLE>
SEE INDEPENDENT AUDITOR'S REPORT
<PAGE> 22
SPARTA INC. PROFIT SHARING PLAN
-------------------------------
FAIR MARKET VALUE OF TRUST ASSETS
---------------------------------
Plan Year Ended January 3, 1997
-------------------------------
<TABLE>
<CAPTION>
DESCRIPTION UNITS COST CURRENT VALUE
- --------------------------------------------------------------------------------------
<S> <C> <C> <C>
Physician Computer Network 200.000 1,503.67 1,700.00
Pimco Coml Mtg Sec 410.000 5,062.75 5,278.75
Pinnacle Micro Inc 300.000 2,479.75 900.00
Pinnacle Systems Inc 300.000 5,583.00 3,150.00
Placer Dome Inc 1100.000 29,233.69 23,925.00
Platinum Software Corp 504.000 -- 5,985.00
Platinum Technology 600.000 6,761.75 8,175.00
Price Cosco Inc 213.000 4,874.03 5,351.63
Procter & Gamble 400.000 8,690.39 43,050.00
QLT Phototherapeutics 200.000 1,666.30 4,025.00
QMS Inc 100.000 1,029.05 525.00
Questech Inc 200.000 1,211.90 1,500.00
Reliastar Finl Corp 400.000 12,575.24 23,100.00
Royal Oak Mines Inc 2500.000 10,760.71 8,125.00
Royce Value Tr 1380.000 7,754.34 17,422.50
Santa Fe Pacific Gold 400.000 2,602.94 6,150.00
Sara Lee Corp 25.000 1,039.05 931.25
Schlumberger Ltd 100.000 9,967.40 9,987.50
SCI Systems 100.000 4,158.76 4,462.50
Seagull Energy Corp 176.000 2,992.78 3,872.00
Sears Roebuck 100.000 5,489.67 4,600.00
Sequus Pharmaceuticals 230.000 2,147.63 3,680.00
Service Merchandise 350.000 1,764.61 1,443.75
Shell Trans & Trading 60.000 4,784.50 6,142.50
Silicon Graphics 200.000 4,941.80 5,100.00
Silverado Mines Ltd 2000.000 4,608.19 938.00
Singer Co Netherlands 110.000 2,129.98 2,461.25
Antilles
Source Cap Inc 140.000 5,695.00 6,370.00
Southern Co 400.000 6,278.60 9,050.00
St Jude Medical Inc 300.000 11,920.11 12,712.50
Sun Microsystems 400.000 10,829.00 10,275.20
Sunshine Mining & Refining 1000.000 1,860.19 938.00
Swiss Helvetia Fund 214.000 2,930.06 4,253.25
Symantec Corp 200.000 2,807.48 2,900.00
Symbolics Inc- New 60.000 1,237.50 0.60
Symmetricom Inc 50.000 994.60 993.75
Taiwan Fund Inc 200.000 4,275.35 4,450.00
Telefonos de Mexico 725.000 23,467.78 23,925.00
Telefonos M SA RP L 100.000 1,100.00 3,300.00
Telefonos Mex 12064.000 5,221.60 19,217.95
Telltabs Inc 400.000 15,623.50 15,050.00
Tera Computer Co 200.000 -- 775.00
</TABLE>
SEE INDEPENDENT AUDITOR'S REPORT
<PAGE> 23
SPARTA INC. PROFIT SHARING PLAN
-------------------------------
FAIR MARKET VALUE OF TRUST ASSETS
---------------------------------
Plan Year Ended January 3, 1997
-------------------------------
<TABLE>
<CAPTION>
DESCRIPTION UNITS COST CURRENT VALUE
- ----------------------------------------------------------------------------------
<S> <C> <C> <C>
Terra Nitrogen Co 100.000 4,590.37 4,537.50
Texas Instrument 95.000 5,186.00 6,056.25
Thermo Electron Co 207.000 9,057.69 8,538.75
Thermotex Corp 200.000 7,942.10 5,475.00
Toys R Us 100.000 2,840.29 2,987.50
Transpro Inc 2900.000 21,352.80 26,462.50
Tri Continental Corp. 734.000 5,207.05 17,707.75
Unisys Corp. 100.000 4,859.50 675.00
United Healthcare Corp 40.000 2,574.82 1,800.00
United Leisure Corp 200.000 -- 87.60
US Gold Corp 1000.000 1,397.00 1,438.00
USX Marathon Group 500.000 17,995.24 11,937.50
USX U. S. Steel Group 100.000 -- 3,137.50
Valujet Inc 1000.000 12,504.00 6,438.00
Vaughn Communications 600.000 6,183.00 4,200.00
Vitro Sociedad Anonima 180.000 1,767.70 990.00
WalMart Stores 300.000 8,239.01 6,825.00
Warner-Lambert 30.000 1,198.48 2,250.00
WD 40 Co 97.000 4,614.70 4,948.55
Webb Del Corp 100.000 2,225.10 1,637.50
Wedgestone FNL 100.000 1,125.00 35.00
Wellman Inc 500.000 10,810.09 8,562.50
Wet Seal Inc 100.000 2,233.39 2,137.50
Wilshire Oil Co Tex 212.000 1,891.89 1,113.00
Wonderware Corp 5550.000 55,302.92 49,345.05
Xilinx Inc 100.000 3,376.46 3,681.30
York Research Corp 200.000 2,421.73 1,900.00
Zappa Resources 1000.000 3,045.73 342.00
------------ ------------
1,798,385.37 2,127,327.35
</TABLE>
SEE INDEPENDENT AUDITOR'S REPORT
<PAGE> 24
SPARTA INC. PROFIT SHARING PLAN
-------------------------------
FAIR MARKET VALUE OF TRUST ASSETS
---------------------------------
Plan Year Ended January 3, 1997
-------------------------------
<TABLE>
<CAPTION>
DESCRIPTION UNITS COST CURRENT VALUE
- ----------------------------------------------------------------------------------------
<S> <C> <C> <C>
EMPLOYER STOCK
Sparta Inc. 2250213.000 9,765,260.00 12,038,639.55
Sparta Inc.- PSP Contrib 267644.000 1,285,585.55 1,431,895.40
Sparta Inc.- 401k Contrib 6891.000 33,512.04 36,866.85
------------- -------------
11,084,357.59 13,507,401.80
</TABLE>
SEE INDEPENDENT AUDITOR'S REPORT
