<PAGE>
FORM 10-Q
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
(X) QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15 (d) OF THE
SECURITIES EXCHANGE ACT OF 1934
For quarter ended SEPTEMBER 30, 1995
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( ) TRANSITION REPORT PURSUANT TO SECTION 13 OR 15 (d) OF THE
SECURITIES EXCHANGE ACT OF 1934
For the transition period from to
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Commission file number 0-4025
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SYMETRICS INDUSTRIES, INC.
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(Exact name of registrant as specified in its charter)
Florida 59-0954868
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(State of Incorporation) (I.R.S. Employer Identification No.)
557 N. Harbor City Boulevard, Melbourne, Florida 32935
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(Address of principal executive offices)
(407) 254-1500
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(Registrant's telephone number, including area code)
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.
Class Outstanding at November 2, 1995
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(Common stock, $.25 par value) 1,383,398
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PART 1 - FINANCIAL INFORMATION
SYMETRICS INDUSTRIES, INC.
CONDENSED BALANCE SHEET
<TABLE>
<CAPTION>
ASSETS
SEPTEMBER 30 MARCH 31
1995 1995
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(UNAUDITED) (DERIVED FROM AUDITED
FINANCIAL STATEMENTS)
<S> <C> <C>
Current assets:
Cash $ 1,196,757 $ 154,334
Receivables 1,220,424 2,000,643
Other receivables 60,860 53,062
Costs and estimated earnings in excess
of billings on uncompleted contracts 3,326,559 3,575,501
Inventory 63,333 83,336
Prepaid expenses 27,289 20,500
Mortgage receivable 450,000 450,000
Deferred income taxes 39,992 27,811
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Total current assets 6,385,214 6,365,187
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Property, plant and equipment 2,238,747 1,873,572
Less accumulated depreciation 1,011,352 904,959
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1,227,395 968,613
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Deferred income taxes 127,973 116,711
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Other assets:
Cash surrender value, officer's
life insurance 100,850 97,149
Investment in product line 50,000 50,000
Deposits 10,390 26,769
Goodwill, less accumulated amortization 399,522 421,118
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560,762 595,036
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Total assets $ 8,301,344 $ 8,045,547
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LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities:
Notes payable $ 1,000 $ 1,000
Current maturities of long-term debt 58,753 18,908
Accounts payable 2,135,555 2,387,115
Billings in excess of costs and estimated
earnings on uncompleted contracts. 33,964 166,972
Accrued liabilities 234,623 315,429
Income taxes payable 290,228 712,790
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Total current liabilities 2,754,123 3,602,214
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Deferred compensation 455,220 432,699
Long-term debt, less current maturities 175,000 --
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630,220 432,699
Shareholders' equity --------- ---------
Common stock, $.25 par value 345,537 229,664
Additional paid-in capital 1,071,763 1,171,011
Retained earnings 3,499,701 2,609,959
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Total shareholders' equity 4,917,001 4,010,634
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Total liabilities and shareholders' equity $ 8,301,344 $ 8,045,547
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</TABLE>
See accompanying notes to the condensed financial statements
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SYMETRICS INDUSTRIES, INC.
CONDENSED STATEMENT OF INCOME
(UNAUDITED)
<TABLE>
<CAPTION>
SIX MONTHS ENDED THREE MONTHS ENDED
SEPT. 30 SEPT. 30 SEPT. 30 SEPT. 30
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1995 1994 1995 1994
<S> <C> <C> <C> <C>
Contract revenue $10,617,238 $ 6,793,608 $ 4,793,099 $ 4,682,129
Costs and expenses
Costs of revenues earned 8,620,389 5,725,265 3,761,753 4,029,593
General and administrative 598,991 387,862 319,575 194,325
Research and development 53,609 29,945 39,836 21,084
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9,272,989 6,143,072 4,121,164 4,245,002
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Income from operations 1,344,249 650,536 671,935 437,127
Other income (expense)
Rental and other income 18,538 19,236 9,313 9,618
Related expense (7,944) (7,944) (3,972) (3,972)
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10,594 11,292 5,341 5,646
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Interest income 54,593 10,022 19,611 5,718
Interest expense (19,212) (12,376) (16,749) (9,942)
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35,381 (2,354) 2,862 (4,224)
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Income before taxes 1,390,224 659,474 680,138 438,549
Income (taxes) (500,482) (252,396) (237,740) (168,056)
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Net income $ 889,742 $ 407,078 $ 442,398 $ 270,493
========= ========= ========= =========
Earnings per share $ 0.65 $ 0.34 $ 0.32 $ 0.22
========= ========= ========= =========
Weighted average number
of shares outstanding 1,378,311 1,204,641 1,379,852 1,204,920
The number of shares outstanding has been adjusted to reflect the 3-for-2 stock split in May 1995.
See accompanying notes to the condensed financial statements.
</TABLE>
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SYMETRICS INDUSTRIES, INC.
CONDENSED STATEMENT OF CASH FLOWS
(UNAUDITED)
<TABLE>
<CAPTION>
SIX MONTHS ENDED
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SEPT. 30 SEPT. 30
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1995 1994
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<S> <C> <C>
Cash provided by (used for)
Operations
Net income $ 889,742 $ 407,078
Adjustments for non cash charge 150,510 90,107
Changes in assets and liabilities 175,721 (479,941)
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Net cash provided by operations 1,215,973 17,244
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Investing
Capital expenditures (365,175) ( 52,517)
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Cash used for investing (365,175) ( 52,517)
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Financing
Proceeds from stock options 16,625 1,406
Borrowing (repayment) of long-term debt 175,000 (10,155)
Cash provided by (used) for financing 191,625 ( 8,749)
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Increase (decrease) in cash 1,042,423 (44,022)
Cash beginning of period 154,334 153,275
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Cash end of period $ 1,196,757 $ 109,253
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Cash payments for interest $ 22,956 $ 10,541
Cash payments for income taxes $ 951,398 $ 147,390
</TABLE>
See accompanying notes to the condensed financial statements
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SYMETRICS INDUSTRIES, INC.
FORM 10-Q
QUARTER ENDED SEPTEMBER 30, 1994
Notes to Condensed Financial Statements
(Unaudited)
* The financial statements contained herein are unaudited but, in
the opinion of management, reflect all adjustments, consisting of normal
recurring adjustments, which are necessary to a fair statement of the
results for the periods ended September 30, 1995 and 1994. The
results of operations for the period ended September 30, 1995 are not
necessarily indicative of the results to be expected for the full fiscal
year.
* Refer to the Company's Form 10-K for the year ended March 31, 1995
as filed with the Securities and Exchange Commission on June 5, 1995 for
a description of accounting policies which have been continued without
change. Also refer to notes included in the financial statements for
additional details of the Company's financial condition, results of
operations and changes in financial position.
* Inventories stated on the balance sheet are raw materials -
primarily electronic parts and components. Refer to the Company's Form
10-K for the year ended March 31, 1995 for discussion of costs incurred
on uncompleted contracts.
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SYMETRICS INDUSTRIES, INC.
FORM 10-Q
QUARTER ENDED SEPTEMBER 30, 1995
Item 2. Management's Discussion and Analysis of Financial Condition and
Results of Operations
For the six months ended September 30, 1995, contract revenues
were $10,617,238, a 56% increase over the $6,793,608 for the
corresponding period last year. For the current six month period, net
income was $889,742, or $0.65 per share, a 118% increase over the
$407,078 or $0.34 per share, a year ago. Working capital increased by
$868,118 for the six months. The backlog closed at $12.1 million,
significantly lower than the unusually high value of $26.1 million at
September 30, 1994 .
Contract revenues for the current six months were essentially the
same as the Company averaged per six months in its last fiscal year,
which was a record year. The increase in net income for the current six
months is attributed to increased productivity and profitability on the
Company's largest contract which provided more gross margin for
offsetting the G&A expenses. The gross margin increased 3.1 % compared
to the corresponding period last year. The higher general and
administrative expense is due to the marketing emphasis on the Company's
computer telephony software products and the Government's military
procurements. The increased research and development costs are primarily
attributed to the computer telephony systems engineering. Increased
interest income resulted from the Company's $450,000 mortgage note
receivable.
Referring to the Balance Sheet, the Company has experienced a good
cash flow and increased working capital due to the profitable
operations. The receivables decreased 51% during this current six month
period indicating prompt payments by the Company's largest customer.
This is reflected in a large cash balance of $1.2 million. The increase
in property, plant and equipment reflects primarily capital purchases
for manufacturing equipment. The increase in long-term debt and the
current maturities portion is for a $250,000, five-year note for part of
the additional manufacturing equipment. The decrease in billings in
excess of costs and estimated earnings on uncompleted contracts reflects
shipments made to offset advance payments from customers as of March 31,
1995. The lower value of accrued liabilities for the current three
months reflects less accrued salaries. The estimated corporate income
taxes of $290,228 for this period, net of estimated payments, have been
accrued at September 30, 1995 and the taxes of $712,790 from fiscal 1995
have been paid. In July 1995, the Company increased its unsecured line
of credit with its bank to $1,500,000 from the previous value of
$1,000,000 to facilitate increased growth.
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For the three months ended September 30, 1995, contract revenues
were $4,793,099, a 2.4% increase over the $4,682,129 for the
corresponding period last fiscal year. The net income for the current
period of $442,398 or $0.32 per share, was 63.5% higher than the
$270,493 or $0.22 per share for the comparative three month period last
year. These significant improvements are attributed to the increased
productivity and resulting increased profitability on the Company's
Improved Data Modem (IDM) contract with the government.
A comparison of the current quarter ended September 30, 1995 to
the immediately preceding quarter, shows contract revenues were about
18% lower at $4,793,099 for the current quarter versus $5,824,139 for
the three months ended June 30, 1995. This decrease is due to a lower
value of material purchases from suppliers during the current quarter.
Despite the lower business volume, the net income of $442,398 was
substantially unchanged from the $447,344 of the immediately preceding
quarter based primarily on improved gross margins for the Company's IDM
program. Backlog at the end of the current quarter was $12.1 million
compared with $ 12.3 million at June 30, 1995.
During the current quarter, the Company continued its
outstanding performance on the IDM contract with the increased
productivity reflected in the increased profit margins. The Company has
already delivered the IDMs ordered in September 1995 for NATO's close
air support role using the Block 40 version of the F-16 aircraft.
Revenues from Symetrics diversification endeavors in commercial
contract manufacturing and computer telephony software systems increased
to more than 10% of the total second quarter revenues. Additional high-
speed surface mount technology (SMT) electronics assembly equipment is
now on-line and will allow for more rapid growth in the contract
manufacturing market area. The computer telephony systems products,
using the Company's Icon-O-Voice technology, are gaining market
acceptance as evidenced by prominent customers like Lockheed Martin,
TRW, Texaco, Conoco, Florida Power and Light and the U.S. Air Force. The
Company's SureCall mass notification system has been particularly
successful in meeting the rapid communication needs of city and county
agencies.
In support of our publicly traded securities, the Company's common
stock is now trading on the National Market System of NASDAQ, and shares
of the Company's stock have recently been made marginable.
Based on these six month results and backlog position, the Company
anticipates continued profitable operations and a successful fiscal
1996.
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Part II OTHER INFORMATION
Item 6. Exhibits and Reports on Form 8-K
(a) Exhibit 27: Financial Data Schedule
(b) No reports on Form 8-K were filed for the quarter ended
September 30, 1995.
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SYMETRICS INDUSTRIES, INC.
FORM 10-Q
QUARTER ENDED SEPTEMBER 30, 1995
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.
SYMETRICS INDUSTRIES, INC.
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(Registrant)
DATE November 2, 1995
/s/ Dudley E. Garner, Jr.
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Dudley E. Garner, Jr.
President,
Principal Executive Officer
Principal Financial Officer
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<TABLE> <S> <C>
<S> <C>
<ARTICLE> 5
<LEGEND>
THIS SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM THE
FINANCIAL STATEMENTS OF SYMETRICS INDUSTRIES INC. FOR THE SIX MONTHS
ENDED SEPTEMBER 30, 1995, AND IS QUALIFIED IN ITS ENTIRETY BY REFERENCE TO SUCH
FINANCIAL STATEMENTS.
</LEGEND>
<MULTIPLIER> 1,000
<S> <C>
<PERIOD-TYPE> 6-MOS
<FISCAL-YEAR-END> MAR-31-1996
<PERIOD-START> APR-01-1995
<PERIOD-END> SEP-30-1995
<CASH> 1,197
<SECURITIES> 0
<RECEIVABLES> 1,220
<ALLOWANCES> 0
<INVENTORY> 63
<CURRENT-ASSETS> 6,385
<PP&E> 2,239
<DEPRECIATION> 1,011
<TOTAL-ASSETS> 8,301
<CURRENT-LIABILITIES> 2,754
<BONDS> 0
<COMMON> 346
0
0
<OTHER-SE> 4,571
<TOTAL-LIABILITY-AND-EQUITY> 8,301
<SALES> 10,617
<TOTAL-REVENUES> 10,617
<CGS> 8,620
<TOTAL-COSTS> 9,272
<OTHER-EXPENSES> 8
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</TABLE>
