-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: webmaster@www.sec.gov Originator-Key-Asymmetric: MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB MIC-Info: RSA-MD5,RSA, MKosL3l8ziXFO5ImEpNaeOBJOh0uRJgNnqff4f/RJLhNyOscPR1h6LoDHi+yxJ46 jyy7zwohGcIriDVVlYhYOg== 0001047469-99-025678.txt : 19990630 0001047469-99-025678.hdr.sgml : 19990630 ACCESSION NUMBER: 0001047469-99-025678 CONFORMED SUBMISSION TYPE: 11-K PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 19981231 FILED AS OF DATE: 19990629 FILER: COMPANY DATA: COMPANY CONFORMED NAME: SYMIX SYSTEMS INC CENTRAL INDEX KEY: 0000872443 STANDARD INDUSTRIAL CLASSIFICATION: SERVICES-PREPACKAGED SOFTWARE [7372] IRS NUMBER: 311083175 STATE OF INCORPORATION: OH FISCAL YEAR END: 0630 FILING VALUES: FORM TYPE: 11-K SEC ACT: SEC FILE NUMBER: 000-19024 FILM NUMBER: 99654322 BUSINESS ADDRESS: STREET 1: 2800 CORPORATE EXCHANGE DR CITY: COLUMBUS STATE: OH ZIP: 43231 BUSINESS PHONE: 6145237000 MAIL ADDRESS: STREET 1: 2800 CORPORATE EXCHANGE DR CITY: COLUMBUS STATE: OH ZIP: 43231 11-K 1 FORM 11-K SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM 11-K [X] ANNUAL REPORT PURSUANT TO SECTION 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the fiscal year ended December 31, 1998 OR [ ] TRANSITION REPORT PURSUANT TO SECTION 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from _____________ to ___________ Commission file number 333-43947 A. Full title of the plan and the address of the plan, if different from that of the issuer named below: Symix Systems, Inc. 401(k) Plan B. Name of issuer of the securities held pursuant to the plan and the address of its principal executive office: Symix Systems, Inc. 2800 Corporate Exchange Drive Suite 400 Columbus, Ohio 43231 Exhibit Index on Page 4. Page 1 of 23 Pages. REQUIRED INFORMATION The following financial statements and supplemental schedules for the Symix Systems, Inc. 401(k) Plan are being filed herewith:
Description Page No. - ----------- -------- Table of Contents to Financial Statements Page 6. AUDITED FINANCIAL STATEMENTS: Report of Independent Auditors Page 7. Statements of Net Assets Available for Page 8. Benefits at December 31, 1998 and 1997 Statements of Changes in Net Assets Available Page 9. for Benefits for the Year Ended December 31, 1998 Notes to Financial Statements Pages 10 through 18. SUPPLEMENTAL SCHEDULES: Item 27a - Schedule of Assets Held for Investment Page 20. Purposes as of December 31, 1998 Item 27d - Schedule of Reportable Transactions Pages 21 for the Year Ended December 31, 1998 and 22.
The following exhibit is being filed herewith:
Exhibit No. Description Page No. - ----------- ----------- --------- 23 Consent of Independent Auditors Page 23.
Page 2 of 23 Pages. SIGNATURES ---------- THE PLAN. Pursuant to the requirements of the Securities Exchange Act of 1934, the trustee has duly caused this annual report to be signed on its behalf by the undersigned hereunto duly authorized. SYMIX SYSTEMS, INC. 401(K) STOCK PLAN Date: June 28, 1999 By: ----------------------------------- Lawrence W. DeLeon, Plan Trustee Page 3 of 23 Pages. SYMIX SYSTEMS, INC. 401(K) PLAN ANNUAL REPORT ON FORM 11-K FOR FISCAL YEAR ENDED DECEMBER 31, 1998 INDEX TO EXHIBITS
Exhibit No. Description Page No. - ----------- ----------- -------- 23 Consent of Independent Auditors Page 23.
Page 4 of 23 Pages. AUDITED FINANCIAL STATEMENTS AND SCHEDULES SYMIX 401(k) PROFIT SHARING PLAN DECEMBER 31, 1998 AND 1997 AND YEAR ENDED DECEMBER 31, 1998 WITH REPORT OF INDEPENDENT AUDITORS Page 5 of 23 Pages. Symix 401(k) Profit Sharing Plan Audited Financial Statements and Schedules December 31, 1998 and 1997 and year ended December 31, 1998 TABLE OF CONTENTS Report of Independent Auditors ..............................................7 Financial Statements Statements of Net Assets Available for Benefits..............................8 Statement of Changes in Net Assets Available for Benefits....................9 Notes to Financial Statements ..............................................10 Schedules Schedule of Assets Held for Investment Purposes.............................20 Schedule of Reportable Transactions.........................................21
Page 6 of 23 Pages. REPORT OF INDEPENDENT AUDITORS Board of Trustees Symix 401(k) Profit Sharing Plan We have audited the accompanying statements of net assets available for benefits of Symix 401(k) Profit Sharing Plan as of December 31, 1998 and 1997, and the related statement of changes in net assets available for benefits for the year ended December 31, 1998. 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. In our opinion, the financial statements referred to above present fairly, in all material respects, the net assets available for benefits of the Plan at December 31, 1998 and 1997, and the changes in its net assets available for benefits for the year ended December 31, 1998, in conformity with generally accepted accounting principles. The information provided by Nationwide Life Insurance Company or The New England and presented in the "Schedule of Reportable Transactions" does not disclose the historical cost of investments. Disclosure of this information is required by the Department of Labor's Rules and Regulations for Reporting and Disclosure under the Employee Retirement Income Security Act of 1974. Our audits were performed for the purpose of forming an opinion on the financial statements taken as a whole. The accompanying supplemental schedules of assets held for investment purposes as of December 31, 1998, and reportable transactions for the year then ended, are presented for purposes of additional analysis and are not a required part of the 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. These supplemental schedules are the responsibility of the Plan's management. The supplemental schedules have been subjected to the auditing procedures applied in our audits of the financial statements and, in our opinion, are fairly stated in all material respects in relation to the financial statements taken as a whole. April 4, 1999, except for Note 6, as to which the date is June 25, 1999 Page 7 of 23 Pages. Symix 401(k) Profit Sharing Plan Statements of Net Assets Available for Benefits
DECEMBER 31 1998 1997 ---------------------------------- ASSETS Cash $ - $ 21,835 Investments, at fair value: Symix Systems, Inc. common stock 2,359,372 1,583,108 Common/Collective Trust funds 628,327 - Mutual funds 8,408,243 - Participant loans 179,549 76,960 Individual variable annuity contracts - 5,828,315 ---------------------------------- Total investments 11,575,491 7,510,218 Receivables: Contribution from Symix Systems, Inc. 18,609 25,125 Contributions from employees 55,826 80,615 ---------------------------------- Total receivables 74,435 105,740 ---------------------------------- Net assets available for benefits $ 11,649,926 $ 7,615,958 ---------------------------------- ----------------------------------
SEE ACCOMPANYING NOTES. Page 8 of 23 Pages. Symix 401(k) Profit Sharing Plan Statement of Changes in Net Assets Available for Benefits Year ended December 31, 1998 ADDITIONS Employee contributions $ 2,006,557 Employer contributions 608,976 Rollover contributions 337,487 Investment income, net 1,650,455 ---------------- 4,603,475 DEDUCTIONS Benefit payments 450,258 Loan repayments/transfers 10,574 ---------------- 460,832 Net unrealized/realized depreciation in fair value of investments (108,675) ---------------- Net increases 4,033,968 Net assets available for benefits at beginning of year 7,615,958 ---------------- Net assets available for benefits at end of year $ 11,649,926 ---------------- ----------------
SEE ACCOMPANYING NOTES. Page 9 of 23 Pages. Symix 401(k) Profit Sharing Plan Notes to Financial Statements December 31, 1998 1. DESCRIPTION OF THE PLAN The following description of the Symix Systems, Inc. 401(k) Profit Sharing Plan (the Plan) provides only general information. Participants should refer to the Summary Plan Description for a complete description of the Plan's provisions. GENERAL The Plan is a defined contribution plan covering substantially all employees immediately upon hire, who have attained age 21. The Plan is subject to the provisions of the Employee Retirement Income Security Act of 1974 (ERISA). CONTRIBUTIONS Each year, participants may contribute the lesser of 18% of their annual compensation, as defined in the Plan, or the maximum permitted by the Internal Revenue Code. The Company contributes an amount equal to 50% of a participant's elective deferred contribution, on the first 5% of a participant's compensation. Upon enrollment, a participant may direct employee contributions in any of the Plan's investment options. Effective January 1, 1998, these investment options included Symix Systems, Inc. stock. Effective July 1, 1998, the employer match contribution is allocated according to participant elected investment options. Prior to this time, the employer match contribution was accumulated in a cash management trust money market series which was in turn used to purchase the Company's stock as an investment of the Plan (see Note 6). PARTICIPANTS ACCOUNTS Each participant's account is credited with the participant's contributions and allocations of (a) the Company's contributions and (b) Plan earnings. Earnings of the Plan are allocated to individual participant's accounts based on the ratio of the participant's account balance in the appropriate fund as of the preceding valuation date to the total fund balance as of the preceding valuation date. Upon termination of employment, a participant's nonvested portion of Company contributions and related earnings are forfeited. These amounts are used to reduce future Company contributions. The benefit to which a participant is entitled is the benefit that can be provided from the participant's account. Page 10 of 23 Pages. Symix 401(k) Profit Sharing Plan Notes to Financial Statements (continued) 1. DESCRIPTION OF THE PLAN (CONTINUED) VESTING Amounts contributed by participants and earnings thereon become immediately vested. Vesting of the employer's contribution and related earnings becomes 100% vested after five years of continuous service (20% per year of service with the Company). PARTICIPANT LOANS Under the Plan, employees may borrow from their fund accounts up to the lesser of $50,000 or 50% of their vested account balance. Loan terms range from 1-5 years or up to 15 years for the purchase of a primary residence. The loans are secured by the balance in the participant's account and bear interest at prime plus one percent. Principal and interest is paid ratably through monthly payroll deductions. PAYMENT OF BENEFITS On termination of service, a participant may receive a lump-sum amount equal to the vested value of his or her account, or upon death, disability or retirement, elect to receive annual installments. 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 the Employee Retirement Income Security Act of 1974 (ERISA). In the event of plan termination, participants will become 100% vested in their accounts. 2. SIGNIFICANT ACCOUNTING POLICIES BASIS OF ACCOUNTING The financial statements of the Plan are prepared on the accrual basis of accounting. INVESTMENTS The Plan's investments are stated at fair value. The shares of registered investment companies are valued at quoted market prices which represent the net asset values of shares held by the Plan at year-end. The participant loans are valued at their outstanding balances, which approximate fair value. Page 11 of 23 Pages. Symix 401(k) Profit Sharing Plan Notes to Financial Statements (continued) 2. SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) Investment contracts held in the General Account, as of December 31, 1997, are recorded at their contract values, which represent contributions and reinvested income, less any withdrawals plus accrued interest, because these investments have fully benefit-responsive features. The fair value of the investment contracts held by the General Account at December 31, 1998 and 1997 was $0 and $229,170, respectively. The average yield of the Interest Income Fund was approximately 4.95% in 1997. The crediting interest rate for these investment contracts is reset annually by the issuer but cannot be less than zero and was 4.8% at December 31, 1997. Purchases and sales of securities are recorded on a trade-date basis. Interest income is recorded on the accrual basis. Dividends are recorded on the ex-dividend date. USE OF ESTIMATES The preparation of financial statements in conformity with generally accepted accounting principals requires management to make estimates that affect the amounts reported in the financial statements and accompanying notes. Actual results could differ from those estimates. ADMINISTRATIVE CHARGES All costs and expenses of administering the Plan are borne by Symix Systems, Inc. (the Company). 3. INVESTMENTS The Plan's investments are held by Merrill Lynch as of December 31, 1998 and were held by Nationwide Life Insurance Company and The New England at December 31, 1997. Investments that represent 5 percent or more of the Plan's net assets are separately identified. The Plan's investments, including investments bought and sold as well as held during the year, depreciated in fair value during the year ended December 31, 1998 by $108,675. Page 12 of 23 Pages. Symix 401(k) Profit Sharing Plan Notes to Financial Statements (continued) 3. INVESTMENTS (CONTINUED) Statements of net assets available for benefits with fund information at December 31, 1998 and 1997 are as follows:
DECEMBER 31, 1998 -------------------------------------------------------------------------------------------- MERRILL LYNCH MERRILL LYNCH MFS RETIREMENT CORPORATE BOND FUND, MERRILL LYNCH MASSACHUSETTS DAVIS NEW PRESERVATION INC. INVESTMENT CAPITAL INVESTORS YORK VENTURE TOTAL TRUST GRADE PORTFOLIO FUND, INC. TRUST FUND, INC. -------------------------------------------------------------------------------------------- ASSETS Investments: Symix Systems, Inc. common stock $ 2,359,372 $ - $ - $ - $ - $ - Common/Collective Trust funds 628,327 628,327 - - - - Mutual funds 8,408,243 - 181,638 1,288,872 2,663,116 64,237 Participant loans 179,549 - - - - - -------------------------------------------------------------------------------------------- 11,575,491 628,327 181,638 1,288,872 2,663,116 64,237 Receivables: Participant's contribution 55,826 3,078 890 6,313 13,046 315 Employer's contribution 18,609 1,026 297 2,105 4,348 105 -------------------------------------------------------------------------------------------- 74,435 4,104 1,187 8,418 17,394 420 -------------------------------------------------------------------------------------------- Net assets available for benefits $ 11,649,926 $ 632,431 $ 182,825 $ 1,297,290 $ 2,680,510 $ 64,657 -------------------------------------------------------------------------------------------- -------------------------------------------------------------------------------------------- DECEMBER 31, 1997 -------------------------------------------------------------------------------------------- NATIONWIDE NATIONWIDE MONEY DREYFUS A FIDELITY FIDELITY GENERAL MARKET BONDS PLUS PURITAN MAGELLAN TOTAL ACCOUNT FUND FUND FUND FUND -------------------------------------------------------------------------------------------- ASSETS Investments: Cash equivalents $ 21,835 $ - $ - $ - $ - $ - Individual variable annuity contracts 5,828,315 227,167 248,869 234,430 932,471 1,659,381 Symix Systems, Inc. common stock 1,583,108 - - - - - Loans to participants 76,960 - - - - - -------------------------------------------------------------------------------------------- 7,510,218 227,167 248,869 234,430 932,471 1,659,381 Receivables: Participant's contribution 80,615 2,003 2,536 2,779 13,531 20,101 Employer's contribution 25,125 - - - - - -------------------------------------------------------------------------------------------- 105,740 2,003 2,536 2,779 13,531 20,101 -------------------------------------------------------------------------------------------- Net assets available for benefits $ 7,615,958 $ 229,170 $ 251,405 $ 237,209 $ 946,002 $ 1,679,482 -------------------------------------------------------------------------------------------- --------------------------------------------------------------------------------------------
Page 13 of 23 Pages.
DECEMBER 31, 1998 (CONTINUED) ------------------------------------------------------------------------------------------- MFS MERRILL LYNCH GAM FUNDAMENTAL MERRILL LYNCH MERRILL LYNCH SYMIX SYSTEMS, INTERNATIONAL GROWTH GROWTH S&P 500 PARTICIPANT INC. COMPANY FUND FUND, INC. FUND INDEX FUND LOANS STOCK ------------------------------------------------------------------------------------------- ASSETS Investments: Symix Systems, Inc. common stock $ - $ - $ - $ - $ - $ 2,359,372 Common/Collective Trust funds - - - - - - Mutual funds 675,240 2,643,228 825,191 66,721 - - Participant loans - - - - 179,549 - ------------------------------------------------------------------------------------------- 675,240 2,643,228 825,191 66,721 179,549 2,359,372 Receivables: Participant's contribution 3,307 12,949 4,043 327 - 11,558 Employer's contribution 1,103 4,316 1,347 109 - 3,853 ------------------------------------------------------------------------------------------- Net assets available for benefits 4,410 17,265 5,390 436 - 15,411 ------------------------------------------------------------------------------------------- $ 679,650 $ 2,660,493 $ 830,581 $ 67,157 $ 179,549 $ 2,374,783 ------------------------------------------------------------------------------------------- ------------------------------------------------------------------------------------------- DECEMBER 31, 1997 (CONTINUED) --------------------------------------------------------------------------- TWENTIETH STRONG CENTURY ULTRA TEMPLETON EMPLOYER SPECIAL INVESTORS FOREIGN PARTICIPANT MATCH FUND II FUND FUND LOANS ACCOUNT --------------------------------------------------------------------------- ASSETS Investments: Cash equivalents $ - $ - $ - $ - $ 21,835 Individual variable annuity contracts 615,484 1,445,121 465,392 - - Symix Systems, Inc. common stock - - - - 1,583,108 Loans to participants - - - 76,960 - --------------------------------------------------------------------------- 615,484 1,445,121 465,392 76,960 1,604,943 Receivables: Participant's contribution 7,487 22,703 9,475 - - Employer's contribution - - - - 25,125 --------------------------------------------------------------------------- Net assets available for benefits 7,487 22,703 9,475 - 25,125 --------------------------------------------------------------------------- $ 622,971 $ 1,467,824 $ 474,867 $ 76,960 $ 1,630,068 --------------------------------------------------------------------------- ---------------------------------------------------------------------------
Page 14 of 23 Pages. Symix 401(k) Profit Sharing Plan Notes to Financial Statements (continued) 3. INVESTMENTS (CONTINUED) Statement of changes in net assets available for benefits with fund information for the year ended December 31, 1998 is as follows:
YEAR ENDED DECEMBER 31, 1998 ------------------------------------------------------------------------------- NATIONWIDE NATIONWIDE MONEY DREYFUS A FIDELITY GENERAL MARKET BONDS PLUS PURITAN TOTAL ACCOUNT FUND FUND FUND ------------------------------------------------------------------------------- ADDITIONS Employee contributions $ 2,006,557 $ 26,778 $ 21,031 $ 23,441 $ 134,916 Employer contributions 608,976 - - - - Rollover contributions 337,487 30 437 1,112 27,713 Investment income, net 1,650,455 3,865 2,908 5,789 91,147 ------------------------------------------------------------------------------- 4,603,475 30,673 24,376 30,342 253,776 DEDUCTIONS Benefit payments (450,258) (3,349) (9,318) (1,746) (30,381) Loans - (3,905) (3,580) (4,755) (20,275) Loan repayments/transfers (10,574) 559 449 682 4,015 Transfers between funds - (253,148) (263,332) (261,732) (1,153,137) Net unrealized/realized appreciation in fair value of investments (108,675) - - - - ------------------------------------------------------------------------------- Net increase 4,033,968 (229,170) (251,405) (237,209) (946,002) Net assets available for benefits at beginning of year 7,615,958 229,170 251,405 237,209 946,002 ------------------------------------------------------------------------------- Net assets available for benefits at end of year $ 11,649,926 $ - $ - $ - $ - ------------------------------------------------------------------------------- ------------------------------------------------------------------------------- ------------------------------------------------------------ TWENTIETH FIDELITY STRONG CENTURY ULTRA TEMPLETON MAGELLAN SPECIAL INVESTORS FOREIGN FUND FUND II FUND FUND ------------------------------------------------------------ ADDITIONS Employee contributions $ 220,840 $ 113,068 $ 264,804 $ 78,950 Employer contributions - - - - Rollover contributions 56,157 18,763 43,953 13,163 Investment income, net 279,840 76,917 348,314 (320) ------------------------------------------------------------ 556,837 208,748 657,071 91,793 DEDUCTIONS Benefit payments (28,726) (25,829) (37,706) (21,333) Loans (72,460) (3,205) (24,820) (2,450) Loan repayments/transfers 4,781 5,810 7,991 856 Transfers between funds (2,139,914) (808,495) (2,070,361) (543,734) Net unrealized/realized appreciation in fair value of investments - - - - ------------------------------------------------------------ Net increase (1,679,482) (622,971) (1,467,825) (474,868) Net assets available for benefits at beginning of year 1,679,482 622,971 1,467,824 474,867 ------------------------------------------------------------ Net assets available for benefits at end of year $ - $ - $ - $ - ------------------------------------------------------------ ------------------------------------------------------------
Page 15 of 23 Pages.
YEAR ENDED DECEMBER 31, 1998 (CONTINUED) ----------------------------------------------------------------------------------------- MERRILL LYNCH MERRILL LYNCH RETIREMENT CORPORATE BOND FUND, DAVIS NEW PRESERVATION INC.-INVESTMENT MERRILL LYNCH MFS MASSACHUSETTS YORK VENTURE TRUST GRADE PORTFOLIO CAPITAL FUND, INC. INVESTORS TRUST FUND, INC. ----------------------------------------------------------------------------------------- ADDITIONS $ 61,888 $ 28,176 $ 152,453 $ 285,018 $ 4,197 Employee contributions 22,923 9,452 48,997 90,861 1,047 Employer contributions 1,944 8,443 33,573 33,696 12,455 Rollover contributions 17,419 4,768 72,549 117,855 1,245 ----------------------------------------------------------------------------------------- Investment income, net 104,174 50,839 307,572 527,430 18,944 DEDUCTIONS Benefit payments (13,238) (4,375) (37,384) (43,010) - Loans (1,329) (160) (5,854) (2,903) - Loan repayments/transfers 920 823 6,549 7,691 401 Transfers between funds 541,905 134,747 1,112,919 2,173,657 41,076 Net unrealized/realized appreciation in fair value of investments - 950 (86,511) 17,645 4,236 ----------------------------------------------------------------------------------------- Net increase 632,432 182,824 1,297,291 2,680,510 64,657 Net assets available for benefits at beginning of year - - - - - ----------------------------------------------------------------------------------------- Net assets available for benefits at end of year $ 632,431 $ 182,825 $ 1,297,290 $ 2,680,510 $ 64,657 ----------------------------------------------------------------------------------------- ----------------------------------------------------------------------------------------- ------------------------------------------------------------------------------------------ MERRILL LYNCH MFS GAM FUNDAMENTAL MERRILL LYNCH SYMIX SYSTEMS, INTERNATIONAL GROWTH MERILL LYNCH S&P 500 LOAN INC. COMPANY FUND FUND, INC. GROWTH FUND INDEX FUND COLLATERAL STOCK ------------------------------------------------------------------------------------------ ADDITIONS Employee contributions $ 109,177 $ 302,570 $ 124,653 $ 4,212 $ - $ 50,385 Employer contributions 35,295 94,897 40,319 975 - 264,210 Rollover contributions 2,917 39,400 38,735 1,201 - 3,795 Investment income, net 9,659 87,024 16,376 2,321 4,455 508,324 ------------------------------------------------------------------------------------------ 157,048 523,891 220,083 8,709 4,455 826,714 DEDUCTIONS Benefit payments (7,287) (97,887) (22,618) - - (66,071) Loans (2,016) (9,134) (5,699) - 167,450 (4,905) Loan repayments/transfers 2,369 9,844 6,291 390 (72,456) 1,461 Transfers between funds 597,812 2,036,968 789,565 56,301 3,140 5,763 Net unrealized/realized appreciation in fair value of investments (68,276) 196,811 (157,040) 1,757 - (18,247) ------------------------------------------------------------------------------------------ Net increase 679,650 2,660,493 830,582 67,157 102,589 744,715 Net assets available for benefits at beginning of year - - - - 76,960 1,630,068 ------------------------------------------------------------------------------------------ Net assets available for benefits at end of year $ 679,650 $ 2,660,493 $ 830,582 $ 67,157 $ 179,549 $2,374,783 ------------------------------------------------------------------------------------------ ------------------------------------------------------------------------------------------
Page 16 of 23 Pages. Symix 401(k) Profit Sharing Plan Notes to Financial Statements (continued) 4. DIFFERENCE BETWEEN FINANCIAL STATEMENTS AND FORM 5500 The following is a reconciliation of benefits paid to participants per the financial statements to the Form 5500 for the year ended December 31, 1998: Benefits paid to participants per the financial statements $450,258 Add: Amounts allocated on Form 5500 to withdrawn participants at December 31, 1998 - Less: Amounts allocated on Form 5500 to withdrawn participants at December 31, 1997 71,775 ------------------- Benefits paid to participants per the Form 5500 $378,483 ------------------- -------------------
5. INCOME TAX STATUS The Plan has received a determination letter from the Internal Revenue Service dated October 30, 1996, stating that the Plan is qualified under Section 401(a) of the Internal Revenue Code (the Code) and, therefore, the related trust is exempt from taxation. Once qualified, the Plan is required to operate in conformity with the Code to maintain its qualification. The Plan was amended and restated on July 1, 1998. The Plan Administrator believes the Plan is being operated in compliance with the applicable requirements of the Code and, therefore, believes that the Plan is qualified and the related trust is tax exempt. Page 17 of 23 Pages. Symix 401(k) Profit Sharing Plan Notes to Financial Statements (continued) 6. RELATED PARTY TRANSACTIONS Included in the investments of the Plan are marketable securities consisting of Symix Systems, Inc.'s common stock. Stock purchased during 1997 included 15,330 shares at a cost of $219,299. at December 31, 1998, the Plan has 112,326 shares with a market value of $2,358,854.($21.00 per share). At June 24, 1999, the closing market price of Symix Systems, Inc.'s common stock was $10.63 per share. 7. YEAR 2000 (UNAUDITED) The Plan Sponsor has determined that it will be necessary to take certain steps in order to ensure that the Plan's information systems are prepared to handle year 2000 dates. The Plan Sponsor is taking a two phase approach. The first phase addresses internal and external resources being utilized to replace or modify existing software applications, and test the software and equipment for the year 2000 modifications. The Plan Sponsor anticipates substantially completing this phase of the project by July 1999. Costs associated with modifying software and equipment are not estimated to be significant and will be paid by the Plan Sponsor. For the second phase of the project, Plan management established formal communications with its third party service providers to determine that they have developed plans to address their own year 2000 problems as they relate to the Plan's operations. All third party service providers have indicated that they will be year 2000 compliant by early 1999. If modification of data processing systems of either the Plan, the Plan Sponsor, or its service providers are not completed timely, the year 2000 problem could have a material impact on the operations of the Plan. Plan management has not developed a contingency plan, because they are confident that all systems will be year 2000 ready. Page 18 of 23 Pages. SUPPLEMENTAL SCHEDULES Page 19 of 23 Pages. Symix 401(k) Profit Sharing Plan Employer ID #31-1083175 Plan #001 Line 27a - Schedule of Assets Held for Investment Purposes December 31, 1998
IDENTITY OF ISSUE, BORROWER, DESCRIPTION OF CURRENT OR SIMILAR PARTY INVESTMENT COST VALUE ---------------------------------------------------------------------------------------------------------------------- MERRILL LYNCH Common/Collective Trust Funds Merrill Lynch Retirement 628,327 units $ 628,327 628,327 Preservation Trust Mutual Funds Merrill Lynch Corporate Bond Fund, Inc. Investment Grade Portfolio 15,565 units 180,720 181,638 Merrill Lynch Capital Fund, Inc. 37,511 units 1,370,542 1,288,872 MFS Massachusetts Investors Trust 131,512 units 2,642,652 2,663,116 Davis New York Venture Fund, Inc. 2,568 units 60,039 64,237 MFS GAM International Fund 22,523 units 739,705 675,240 Merrill Lynch Fundamental Growth Fund, Inc. 128,938 units 2,443,398 2,643,228 Merrill Lynch Growth Fund 38,453 units 969,052 825,191 Merrill Lynch S&P 500 Index Fund 4,361 units 64,964 66,721 ------------------------------------ 8,471,072 8,408,243 Symix Systems, Inc. common stock 112,326 shares 2,315,037 2,359,372 Participant loans Interest rates ranging from 7% to 11% - 179,549 ------------------------------------ $ 11,414,436 $ 11,575,491 ------------------------------------ ------------------------------------
Page 20 of 23 Pages. Symix 401(k) Profit Sharing Plan Employer ID #31-1083175 Plan #001 Line 27d - Schedule of Reportable Transactions Year ended December 31, 1998
CURRENT VALUE OF ASSET ON NET DESCRIPTION OF PURCHASE SELLING COST OF TRANSACTION GAIN/ IDENTITY OF PARTY INVOLVED ASSET PRICE PRICE ASSET DATE LOSS - ---------------------------------------------------------------------------------------------------------------------------------- CATEGORY (i)--INDIVIDUAL TRANSACTIONS IN EXCESS OF 5% OF PLAN ASSETS: Nationwide Life Insurance Company Fidelity Magellan Fund - 1,582,166 (1) 1,582,166 (1) Nationwide Life Insurance Company Fidelity Magellan Fund - 589,500 (1) 589,500 (1) Nationwide Life Insurance Company Fidelity Puritan Fund - 796,575 (1) 796,575 (1) Nationwide Life Insurance Company Strong Special Fund II - 658,865 (1) 658,865 (1) Nationwide Life Insurance Company Twentieth Century Ultra Investors Fund - 1,790,817 (1) 1,790,817 (1) Nationwide Life Insurance Company Templeton Foreign Fund - 381,233 (1) 381,233 (1) CATEGORY (iii)--SERIES OF TRANSACTIONS IN EXCESS OF 5% OF PLAN ASSETS: Nationwide Life Insurance Company Fidelity Puritan Fund 179,823 - 179,823 179,823 - Fidelity Puritan Fund - 1,186,198 (1) 1,186,198 (1) Nationwide Life Insurance Company Twentieth Century Ultra Investors Fund 337,901 - 337,901 337,901 - Twentieth Century Ultra Investors Fund - 2,159,751 (1) 2,159,751 (1) Nationwide Life Insurance Company Strong Special Fund II 144,021 - 144,021 144,021 - Strong Special Fund II - 845,300 (1) 845,300 (1) Nationwide Life Insurance Company Templeton Foreign Fund 101,960 - 101,960 101,960 - Templeton Foreign Fund - 622,431 (1) 622,431 (1)
Page 21 of 23 Pages. Symix 401(k) Profit Sharing Plan Employer ID #31-1083175 Plan #001 Line 27d - Schedule of Reportable Transactions Year ended December 31, 1998
CURRENT VALUE OF ASSET ON NET DESCRIPTION OF PURCHASE SELLING COST OF TRANSACTION GAIN/ IDENTITY OF PARTY INVOLVED ASSET PRICE PRICE ASSET DATE LOSS - ---------------------------------------------------------------------------------------------------------------------------------- CATEGORY (iii)--SERIES OF TRANSACTIONS IN EXCESS OF 5% OF PLAN ASSETS (CONTINUED): Nationwide Life Insurance Company Fidelity Magellan Fund 300,948 - 300,948 300,948 - Fidelity Magellan Fund - 2,274,461 (1) 2,274,461 (1) Merrill Lynch Symix Systems, Inc., common stock 2,460,912 - 2,460,912 2,460,912 - Symix Systems, Inc., common stock - 140,502 146,392 140,502 (5,890) Merrill Lynch Retirement Preservation Trust 659,372 - 659,372 659,372 - Retirement Preservation Trust - 31,045 31,045 31,045 - Merrill Lynch Fundamental Growth Fund, Inc. 2,618,010 - 2,618,010 2,618,010 - Fundamental Growth Fund, Inc. - 171,593 174,611 171,593 (3,018) Merrill Lynch MFS GAM International Fund 765,181 - 765,181 765,181 - MFS GAM International Fund - 21,665 25,476 21,665 (3,811) Merrill Lynch Capital Fund, Inc. 1,434,351 - 1,434,351 1,434,351 - Capital Fund, Inc. - 59,164 64,005 59,164 (4,841) Merrill Lynch Growth Fund 1,046,231 - 1,046,231 1,046,231 - Growth Fund - 64,011 77,191 64,011 (13,180) Merrill Lynch MFS Massachusetts Investors Trust 2,707,055 - 2,707,055 2,707,055 - MFS Massachusetts Investors Trust - 62,171 64,990 62,171 (2,819)
There were no category (ii) or (iv) transactions or series of transactions in excess of 5% of plan assets which occurred during the year ended December 31, 1998. (1) Historical cost information is not maintained, therefore, the net gain (loss) on sale of assets cannot be calculated. Page 22 of 23 Pages. EX-23 2 EXHIBIT 23 EXHIBIT 23 CONSENT OF INDEPENDENT AUDITORS We consent to the incorporation by reference in the Registration Statement (Form S-8 No. 333-43947) pertaining to the Symix Systems, Inc. 401(K) Plan of our report dated April 4, 1999, except for Note 6, as to which the date is June 25, 1999, with respect to the financial statements and schedules of the Symix Systems, Inc. 401(K) Plan included in this Annual Report (Form 11-K) for the year ended December 31, 1998. Columbus, Ohio June 25, 1999 ------------------------------ Page 23 of 23 Pages. -----END PRIVACY-ENHANCED MESSAGE-----