<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 DECEMBER 31, 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 January 31, 1996
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(Common stock, $.25 par value) 1,387,898
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PART 1 - FINANCIAL INFORMATION
SYMETRICS INDUSTRIES, INC.
CONDENSED BALANCE SHEET
<TABLE>
<CAPTION>
ASSETS
DECEMBER 31 MARCH 31
1995 1995
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(UNAUDITED) (DERIVED FROM AUDITED
FINANCIAL STATEMENTS)
<S> <C> <C>
Current assets:
Cash $ 1,051,142 $ 154,334
Receivables 1,166,479 2,000,643
Other receivables 43,240 53,062
Costs and estimated earnings in excess
of billings on uncompleted contracts 3,006,559 3,575,501
Inventory 57,174 83,336
Prepaid expenses 21,849 20,500
Mortgage receivable 450,000 450,000
Deferred income taxes 34,139 27,811
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Total current assets 5,830,582 6,365,187
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Property, plant and equipment 2,594,467 1,873,572
Less accumulated depreciation 1,066,924 904,959
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1,527,543 968,613
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Deferred income taxes 129,567 116,711
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Other assets:
Cash surrender value, officer's
life insurance 97,149
Investment in product line 50,000 50,000
Deposits 10,390 26,769
Goodwill, less accumulated amortization 388,724 421,118
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449,114 595,036
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Total assets $ 7,936,806 $ 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 3,535 18,908
Accounts payable 1,198,222 2,387,115
Billings in excess of costs and estimated
earnings on uncompleted contracts. 21,928 166,972
Accrued liabilities 264,585 315,429
Income taxes payable 557,312 712,790
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Total current liabilities 2,046,582 3,602,214
0 ------------ ------------
Deferred compensation 466,482 432,699
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466,482 432,699
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Shareholders' equity
Common stock, $.25 par value 346,975 229,664
Additional paid-in capital 1,090,636 1,171,011
Retained earnings 3,986,131 2,609,959
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Total shareholders' equity 5,423,742 4,010,634
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Total liabilities and shareholders' equity $ 7,936,806 $ 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>
NINE MONTHS ENDED THREE MONTHS ENDED
DEC. 31 DEC. 31 DEC. 31 DEC. 31
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1995 1994 1995 1994
<S> <C> <C> <C> <C>
Contract revenue $15,151,979 $14,165,942 $4,534,741 $7,372,334
Costs and expenses
Costs of revenues earned 12,030,694 12,060,019 3,410,305 6,334,754
General and administrative 954,154 578,533 355,163 190,671
Research and development 93,775 41,749 40,166 11,804
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13,078,623 12,680,301 3,805,634 6,537,229
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Income from operations 2,073,356 1,485,641 729,107 835,105
Other income (expense)
Rental and other income 28,451 27,844 9,913 8,608
Related expense (11,916) (11,916) (3,972) (3,972)
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16,535 15,928 5,941 4,636
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Interest income 83,180 20,856 28,587 10,834
Interest expense (22,802) (12,376) ( 3,590) 0
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60,378 8,480 24,997 10,834
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Income before taxes 2,150,269 1,510,049 760,045 850,575
Income (taxes) (774,097) (539,238) (273,615) (286,842)
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Net income $ 1,376,172 $ 970,811 $ 486,430 $ 563,733
=========== =========== ========== ========
Earnings per share $ 1.00 $ .80 $ 0.35 $ 0.45
=========== =========== ========== ========
Weighted average number
of shares outstanding 1,380,952 1,220,017 1,386,088 1,250,748
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>
NINE MONTHS ENDED
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DEC. 31 DEC. 31
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1995 1994
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<S> <C> <C>
Cash provided by (used for)
Operations
Net income $ 1,376,172 $ 970,811
Adjustments for non cash charge 228,142 136,356
Changes in assets and liabilities (23,547) (403,044)
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Net cash provided by operations 1,580,767 704,123
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Investing
Capital expenditures (720,895) (72,009)
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Cash used for investing (720,895) (72,009)
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Financing
Proceeds from stock options 36,936 59,139
Repayment of long-term debt - (15,019)
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Cash provided for financing 36,936 44,120
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Increase in cash 896,808 676,234
Cash beginning of period 154,334 153,275
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Cash end of period $ 1,051,142 $ 829,509
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Cash payments for interest $ 24,602 $ 591
Cash payments for income taxes $ 951,398 $ 63,770
</TABLE>
See accompanying notes to the condensed financial statements
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<PAGE>
SYMETRICS INDUSTRIES, INC.
FORM 10-Q
QUARTER ENDED DECEMBER 31, 1995
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 December 31, 1995 and 1994. The results of
operations for the period ended December 31, 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 at December 31, 1995 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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<PAGE>
SYMETRICS INDUSTRIES, INC.
FORM 10-Q
QUARTER ENDED DECEMBER 31, 1995
Item 2. Management's Discussion and Analysis of Financial Condition and
Results of Operations
For the nine months ended December 31, 1995, contract revenues were
$15,151,979, a 7% increase over the $14,165,942 for the corresponding period
last year. For the current nine month period, a net income of $1,376,172,
or $1.00 per share, is reported compared to $970,811 or $0.80 per share, a
year ago. Working capital increased by $1,021,027 for the nine months and,
in addition, capital purchases of $720,895 were paid by cash. The backlog
closed at $9.6 million, compared with the $18.6 million at December 31,
1994.
Contract revenues for the current nine months increased 7.0% compared
to the corresponding period last year, but net income was 41.8 % higher.
This significant increase is due primarily to continued productivity
improvement on the Company's major program, the Improved Data Modem (IDM)
and increased revenues from both commercial product areas. Accordingly, the
gross margin improved to 20.6% for the nine months ended December 31, 1995
versus 14.9% for the nine months ended December 31, 1994. The significant
improvement in gross margin was supplemented by a four fold increase in
interest income which resulted from prudent cash management and an
investment in a high yielding mortgage receivable. The higher general and
administrative expense is due to the marketing emphasis on the Computer
Telephony Systems software products. The higher research and development
expense reflects an increased engineering activity on these software
products.
Referring to the Balance Sheet, the Company has experienced good cash
flow and increased working capital due to the profitable operations. The
total of cash and receivables is essentially unchanged since the start of
the year; however, the accounts payable have decreased by 50% reflecting the
profitable operations and good cash management. Since March 31, 1995 the
Company has added $720,895 of capital equipment and the $250,000 five-year
note executed in April 1995 has been retired, resulting in no long term
debt. The decrease in cost and estimated earnings in excess of billings on
uncompleted contracts reflects the high value of equipment shipments during
the nine month period. The decrease in billings in excess of costs and
estimated earnings on uncompleted contracts also reflects equipment
shipments that liquidated advanced billings. The lower accrued liabilities
at December 31, 1995 reflect primarily the payment of $40,259 in accrued
expenses associated with the acquisition of the assets of SouthernCircuit
Technologies, Inc. in January 1995. The estimated corporate income taxes of
$557,312 (tax due of $774,097 less estimated tax payments of $216,785) for
this period have been accrued at December 31, 1995 and the taxes of $712,790
from fiscal 1995 have been paid.
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<PAGE>
For the three months ended December 31, 1995, contract revenues were
$4,534,741, a 38.4% decrease over the $7,373,334 for the corresponding
period last fiscal year. The net income for the current period of
$486,430 or $0.35 per share, was 13.7% lower than the $563,733 or $0.45 per
share for the comparative three month period last year. The decrease in
revenues is attributed to the lower backlog and the fact that the third
quarter ended December 31, 1994 was an exceptionally high quarter, a Company
record. A comparable decrease in net income was not realized due to
substantial improvements made to gross margin.
Contract revenues for the current quarter ended December 31, 1995 were
5.4% lower than the revenues of $ 4,793,099 for the immediately preceding
quarter that ended September 30, 1995. The net income of $ 486,430 was 10%
higher than the $442,395 of the immediately preceding quarter due to the
increased productivity on the Company's largest contract. Backlog at the
end of the current quarter was $ 9.6 million compared with $ 12.1 million at
September 30, 1995. The Company believes the decrease in backlog is due to
the delay in the U. S. Governments approval of the Department of Defense
operating budget.
Symetrics has continued its strong performance on the IDM contract
having shipped 823 systems placing the program over eight months ahead of the
contract schedule. The Company is working with the Government to accelerate
delivery of IDMs with expanded memory capability. This extra memory is
required by the latest release of the operational software programs for the
IDM which provides the Army and Air Force additional performance features.
Although the Company did not receive any new business for IDMs during the
quarter ended December 31, 1995, it is anticipated that new awards,
including memory upgrades will be received in the fourth quarter of
Symetrics fiscal year 1996, ending March 31, 1996. About half of Symetrics
existing orders for IDMs, which now total 1,450 units, are for U. S. allies
to install aboard their F-16 Aircraft. Symetrics has also identified new
potential IDM customers in England, Japan, South Korea, Taiwan and Turkey.
On Symetrics' existing contract the U. S. Government can order additional
IDMs through September 1997. Currently, on the U. S. Government's programs
that are committed or planning to use the IDM, over 2,000 additional IDMs
will be needed. However there is no assurance that the Company will be
awarded any or all of these additional IDMs.
Revenues from Symetrics' diversification endeavors in commercial
contract manufacturing and computer telephony software products increased
to more than 15% of the total third quarter revenues, up from 10% in the
second quarter and less than 3% of last fiscal year. Additional high-speed
surface mount technology (SMT) electronics assembly equipment is now on-
line in the Contract Manufacturing Division and revenue growth is
anticipated over the next several quarters. The Computer Telephony Systems
products, using the Company's Icon-O-Voice technology, are positioned to
make a growing contribution to the financial results. The Company believes
it has developed a leading edge technology for several market applications
and several successful, high visibility installations of its products have
been made in the past six months.
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<PAGE>
Part II OTHER INFORMATION
Item 6. Exhibits and Reports on Form 8-K
(a) Exhibit 27: Financial Data Schedule
(b) No reports on Form 8K were filed for the quarter ended
December 31, 1995.
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<PAGE>
SYMETRICS INDUSTRIES, INC.
FORM 10-Q
QUARTER ENDED DECEMBER 31, 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 February 2, 1996
/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 NINE MONTHS
ENDED DECEMBER 31, 1995, AND IS QUALIFIED IN ITS ENTIRETY BY REFERENCE TO SUCH
FINANCIAL STATEMENTS.
</LEGEND>
<MULTIPLIER> 1,000
<S> <C>
<PERIOD-TYPE> 9-MOS
<FISCAL-YEAR-END> MAR-31-1996
<PERIOD-START> APR-01-1995
<PERIOD-END> DEC-31-1995
<CASH> 1,051
<SECURITIES> 0
<RECEIVABLES> 1,166
<ALLOWANCES> 0
<INVENTORY> 57
<CURRENT-ASSETS> 5,830
<PP&E> 2,594
<DEPRECIATION> 1,066
<TOTAL-ASSETS> 7,936
<CURRENT-LIABILITIES> 2,046
<BONDS> 0
<COMMON> 347
0
0
<OTHER-SE> 5,076
<TOTAL-LIABILITY-AND-EQUITY> 7,936
<SALES> 15,151
<TOTAL-REVENUES> 15,151
<CGS> 12,030
<TOTAL-COSTS> 13,078
<OTHER-EXPENSES> 12
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 23
<INCOME-PRETAX> 2,150
<INCOME-TAX> 774
<INCOME-CONTINUING> 1,376
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<EXTRAORDINARY> 0
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<NET-INCOME> 1,376
<EPS-PRIMARY> 1.00
<EPS-DILUTED> 1.00
</TABLE>
