Fort Walton Beach Council minutes — 03-30-1982 Special — reading text

variety of missiles against air, 3, 714 4, 268 3, 107 3, 144 3, 545 Notes payable portion due after one year sea, land and underwater targets. The missiles are fired are carried on through two wholly- owned subsidiaries: 31, 939 29, 244 26, 693 24, 638 18, 751 from clusters' of launching tubes located below the Total assets . Metric Systems Corporation in Fort Walton Beach, 13, 881 12. 172 12, 479 8, 218 14, 952 Florida, and TRAK Microwave Corporation in Tampa, ship' s deck, with reloading accomplished at sea. Total liabilities Florida. Metric Systems became a member in 1979 of the U. S. Navy / Martin Marietta team that has developed the 16, 987 5, 363 4, 52 2 159 10, 533 Metric Systems designs and produces a variety of Shareholders' investment sophisticated radar systems used primarily for military System and accomplished successful tests at sea. training, plus advanced electronic systems for monitor- Metric Systems' responsibilities are the. design and ing and control purposes, all of which are sold to the manufacture of a major portion of the electronic control, Management' s Discussion and Analysis of Financial Condition U. S. and other governments and to defense con- monitoring and power distribution equipment for the tractors. TRAK designs and manufactures a wide range System. and Results of Operations of electronic microwave components which are Total additions to the original Vertical Launching Sys- such expenditures are expected to be about of electronic systems for both tem development contract during 1981 were $ 4 mil- Liquidity and Capital Resources purchased by producers 7. 2, 500, 000 in 1982. The Company anticipates that the military and industrial applications. lion. The additions included redesign to allow launch of Working capital provided by operations is the Com- funds necessary for increased working capital require- ElectronIc Systems. A major product of Metric the TOMAHAWK medium- range cruise missile, design of pany' s primary source of liquidity. These funds ments and the capita equipment program will come Systems is the AN / MPQ- T3 Universal Anti- Aircraft Artil- tooling and production facilities and procurement of amounted to $ 2, 093, 000 in 1981, $ 1, 589,000 in 1980 lery Radar Simulator which reliably and effectively dupli- some of the long- lead material required for production. from operations short term borrowings, capital equip- and $ 2, 457, 000 in 1979. The Company has traditionally cates five separate radar systems used by potential ment financing, and possibly from long term debt or AN / MPQ- T3 Threat Simulator in use used short term debt and bank acceptances to augment enemy forces. These systems, consisting of three equity financing. target acquisition and tracking radars integrated into a working capital requirements. In addition, the Company in the past has disposed of some of its real estate and Results of Operations CG- 97 Cruiser with Vertical Launching System has used the proceeds o provide working capital The 198 in comparison with 1980 Company has unused ines of credit with banks under Sales for 1981 increased 12% ($ 4, 438, 000) as com- existing debt arrangements at December 31, 1981 pared with 980 while costs and expenses increased hich aggregated $ 4, 700, 000. The Company believes 9% ($ 3, 257, 000), resulting n an increase of 09% at long term financing will be available to meet addi- 1, 181, 000) in income before income taxes. onal capital expenditure requirements. Long term debt as a percentage of total capitalization was 22% at The increase in sales was attributable to the Elec- December 31, 1981 and the Company believes that tronics segment which registered a $ 5, 648,000 or 38% additional debt of $ 5, 000, 000 to $ 8, 000, 000 could be increase over 980. This was due to the substantial incurred without affecting the Company' s current credit orders of new business received by the electronics sys- standing tems of this segment during the year, which portion included orders which the Company originally antici- Capital expenditures for land, buildings, and improve- ments and equipment were $ 869, 000, $ 2, 002, 000 and pated receiving n 1980. Building Materials showed 1, 229, 000 for 1981, 1980 and 1979, respectively, and improved sales of 7% ($ 802, 000) despite the continued 2 15  annua costs of $ 132, 000, $ 85, 000, and $ 61, 000 for order, any funds which remain undistributed after July 198 1980 and 1979, respectively. 15, 1982, become the property of the Company. The obligation of the Company to issue any shares which Note 9 - Commitments and Contingencies: remain undistributed after such date will also terminate. The Company is lessee under certain long term agree-