<PAGE>   1
                       SECURITIES AND EXCHANGE COMMISSION
                              Washington, DC 20549

                                    FORM 10-Q



(Mark One)

      [X]   Quarterly report pursuant to Section 13 or 15(d) of the Securities
            Exchange Act of 1934 For the quarterly period ended MARCH 31, 1998
            or

      [X]   Transition report pursuant to Section 13 or 15(d) of the Securities
            Exchange Act of 1934 For the transition period from ___________ to
            _________

             Commission file number 1-12410

                                  SIMULA, INC.
             (Exact Name of Registrant as Specified in Its Charter)

                     ARIZONA                                86-0320129
       (State or Other Jurisdiction of                   (I.R.S. Employer
       Incorporation or Organization)                   Identification No.)

2700 N. CENTRAL AVENUE, SUITE 1000, PHOENIX, ARIZONA           85004
   (Address of Principal Executive Offices)                  (Zip Code)

                                 (602) 631-4005
              (Registrant's Telephone Number, Including Area Code)


              (Former Name, Former Address and Former Fiscal Year,
                         if Changed Since Last Report)

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)

                 Yes        [X]          No

(2)  has been subject to such filing requirements for the past 90 days.

                 Yes        [X]          No


Indicate the number of shares outstanding of each of the issuer's classes of
common stock, as of the latest practicable date:
                                                      Outstanding at
           Class                                      March 31, 1998

 Common Stock, $.01 par value                            9,872,070

<PAGE>   2

                                  SIMULA, INC.


                                      INDEX
                                                                               
PART I - FINANCIAL INFORMATION


                                                                         PAGE
Item 1 - Financial Statements

         Consolidated Balance Sheets
              March 31, 1998 and December 31, 1997.........................2

         Consolidated Statements of Operations
              Three Months Ended March 31, 1998 and 1997...................3

         Consolidated Statement of Shareholders' Equity
              Three Months Ended March 31, 1998............................4

         Consolidated Statements of Cash Flows
              Three Months Ended March 31, 1998 and 1997...................5

         Notes to Interim Consolidated Financial Statements ...............6

Item 2 - Management's Discussion and Analysis of
              Results of Operations and Financial Condition...........7 - 10


PART II - OTHER INFORMATION


Item 6 - Exhibits and Reports.............................................11

SIGNATURE.................................................................12


                                       1
<PAGE>   3
PART I - FINANCIAL INFORMATION

Item 1.  Financial Statements.

                          SIMULA, INC. AND SUBSIDIARIES
                           CONSOLIDATED BALANCE SHEETS
<TABLE>
<CAPTION>

                                                                                      March 31,           December 31,
                                                                                         1998                 1997
                                                                                   -----------------    -----------------
<S>                                                                                <C>                  <C>        
ASSETS
CURRENT ASSETS:
     Cash and cash equivalents                                                          $ 6,751,034          $ 9,367,031
     Contract and trade receivables  - Net                                               36,399,300           34,025,485
     Inventories                                                                         28,399,190           27,506,094
     Deferred income taxes                                                                3,763,000            3,763,000
     Prepaid expenses and other                                                           1,456,352            1,641,081
                                                                                   -----------------    -----------------

          Total current assets                                                           76,768,876           76,302,691

PROPERTY, EQUIPMENT AND LEASEHOLD IMPROVEMENTS - Net                                     25,238,302           24,854,227
DEFERRED INCOME TAXES                                                                     4,473,000            4,477,000
DEFERRED FINANCING COSTS                                                                  2,967,457            3,136,898
INTANGIBLES - Net                                                                        10,314,160           10,525,533
OTHER ASSETS                                                                                803,232              981,827
                                                                                   -----------------    -----------------

          TOTAL                                                                       $ 120,565,027        $ 120,278,176
                                                                                   =================    =================


LIABILITIES & SHAREHOLDERS' EQUITY
CURRENT LIABILITIES:
     Revolving line of credit                                                           $ 3,700,000
     Trade accounts payable                                                               8,645,167         $ 12,007,287
     Other accrued liabilities                                                            6,117,878            6,380,273
     Advances on contracts                                                                1,508,499            1,163,109
     Current portion of long-term debt                                                    8,114,485            8,097,242
                                                                                   -----------------    -----------------

          Total current liabilities                                                      28,086,029           27,647,911

LONG-TERM DEBT - Less current portion                                                    46,381,873           46,987,859
                                                                                   -----------------    -----------------

          Total liabilities                                                              74,467,902           74,635,770
                                                                                   -----------------    -----------------

SHAREHOLDERS' EQUITY:
     Preferred stock, $.05 par value - authorized 50,000,000 shares;
         no shares issued or outstanding
     Common stock, $.01 par value - authorized 50,000,000 shares;
         issued 9,872,070 (1998) and 9,850,832 (1997) shares                                 98,721               98,508
     Additional paid-in capital                                                          51,383,168           51,109,830
     Retained deficit                                                                    (5,501,121)          (5,505,822)
     Currency translation adjustment                                                        116,357              (60,110)
                                                                                   -----------------    -----------------

          Total shareholders' equity                                                     46,097,125           45,642,406
                                                                                   -----------------    -----------------

          TOTAL                                                                       $ 120,565,027        $ 120,278,176
                                                                                   =================    =================
</TABLE>


             See notes to interim consolidated financial statements.



                                       2
<PAGE>   4






                                  SIMULA, INC.
                      CONSOLIDATED STATEMENTS OF OPERATIONS
<TABLE>
<CAPTION>

                                                                                       Three Months Ended March 31,
                                                                                   --------------------------------------
                                                                                         1998                 1997
                                                                                   -----------------    -----------------

<S>                                                                                <C>                  <C>         
Revenue                                                                                $ 28,003,702         $ 17,825,823

Cost of revenue                                                                          20,945,119           12,764,105
                                                                                   -----------------    -----------------

Gross margin                                                                              7,058,583            5,061,718

Administrative expenses                                                                   5,656,939            5,055,215
                                                                                   -----------------    -----------------

Operating income                                                                          1,401,644                6,503

Interest expense                                                                         (1,455,505)            (951,640)

Interest income                                                                              62,562
                                                                                   -----------------    -----------------

Income (loss) before taxes                                                                    8,701             (945,137)

Income tax (expense) benefit                                                                 (4,000)             379,000
                                                                                   -----------------    -----------------

Net earnings (loss)                                                                         $ 4,701           $ (566,137)
                                                                                   =================    =================


Earnings (loss) per common share - basic                                                        $ -               $ (0.06)
                                                                                   =================    =================

Earnings (loss) per common share - assuming dilution                                            $ -               $ (0.06)
                                                                                   =================    =================
</TABLE>


             See notes to interim consolidated financial statements.


                                       3
<PAGE>   5


                                  SIMULA, INC.
                 CONSOLIDATED STATEMENT OF SHAREHOLDERS' EQUITY
                        THREE MONTHS ENDED MARCH 31, 1998

<TABLE>
<CAPTION>

                                                                  
                                          Common Stock            Additional                              Currency         Total 
                                   ----------------------------    Paid-in            Retained           Translation   Shareholders'
                                      Shares         Amount        Capital            (Deficit)          Adjustment        Equity
                                   --------------  ------------  --------------  -----------------  --------------  ----------------
<S>                                <C>             <C>            <C>            <C>                <C>             <C>
BALANCE, January 1, 1998               9,850,832      $ 98,508    $ 51,109,830       $ (5,505,822)      $ (60,110)     $ 45,642,406

Net earnings                                                                                4,701                             4,701

Issuance of common shares                 21,238           213         273,338                                              273,551

Currency translation adjustment                                                                           176,467           176,467
                                   --------------  ------------  --------------  -----------------  --------------  ----------------

BALANCE, March 31, 1998                9,872,070      $ 98,721    $ 51,383,168       $ (5,501,121)      $ 116,357      $ 46,097,125
                                   ==============  ============  ==============  =================  ==============  ================
</TABLE>

             See notes to interim consolidated financial statements.


                                       4
<PAGE>   6


                                  SIMULA, INC.
                      CONSOLIDATED STATEMENTS OF CASH FLOWS


<TABLE>
<CAPTION>
                                                                                        Three Months Ended March 31,
                                                                                   --------------------------------------
                                                                                          1998                1997
                                                                                   ------------------   -----------------

<S>                                                                                <C>                  <C>        
 Cash flows used for operating activities:
      Net earnings (loss)                                                                    $ 4,701          $ (566,137)
      Adjustment to reconcile net earnings (loss) to net cash used by
         operating activities:
         Depreciation and amortization                                                     1,439,958             924,731
         Deferred income taxes                                                                 4,000            (379,000)
         Currency translation adjustment                                                     176,467             (53,479)
      Changes in net assets and liabilities:
         Contract and trade receivables - net of advances                                 (2,028,425)           (472,215)
         Inventories                                                                        (898,502)         (2,353,608)
         Prepaid expenses and other                                                          184,729             152,033
         Other assets                                                                        153,084            (117,706)
         Trade accounts payable                                                           (3,362,120)           (473,594)
         Other accrued liabilities                                                          (262,395)           (109,745)
                                                                                   ------------------   -----------------

             Net cash used by operating activities                                        (4,588,503)         (3,448,720)
                                                                                   ------------------   -----------------

 Cash flows used by investing activities:
      Purchase of property and equipment                                                  (1,385,304)         (2,400,583)
      Costs incurred to obtain intangibles                                                   (26,998)            (27,968)
                                                                                   ------------------   -----------------

             Net cash used in investing activities                                        (1,412,302)         (2,428,551)
                                                                                   ------------------   -----------------

 Cash flows from financing activities:
      Net borrowings under line of credit                                                  3,700,000           6,025,000
      Principal payments under other debt arrangements                                      (588,743)           (432,298)
      Issuance of common shares                                                              273,551             252,072
                                                                                   ------------------   -----------------

             Net cash provided by financing activities                                     3,384,808           5,844,774
                                                                                   ------------------   -----------------

 Net decrease in cash and cash equivalents                                                (2,615,997)            (32,497)

 Cash and cash equivalents at beginning of period                                          9,367,031           1,298,741
                                                                                   ------------------   -----------------

 Cash and cash equivalents at end of period                                              $ 6,751,034         $ 1,266,244
                                                                                   ==================   =================


 SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION:

      Interest paid                                                                      $ 1,856,849           $ 940,432
                                                                                   ==================   =================

      Taxes paid                                                                                 $ -            $ 60,000
                                                                                   ==================   =================
</TABLE>

             See notes to interim consolidated financial statements.


                                       5
<PAGE>   7
                                  SIMULA, INC.
               NOTES TO INTERIM CONSOLIDATED FINANCIAL STATEMENTS


NOTE 1 - BASIS OF PRESENTATION:

         The accompanying interim consolidated financial statements of Simula,
         Inc. (the "Company") have been prepared in accordance with generally
         accepted accounting principles for interim financial information and
         with the instructions to Form 10-Q. Accordingly, they do not include
         all of the information and notes required by generally accepted
         accounting principles for complete financial statements. In the opinion
         of Management, all adjustments and reclassifications considered
         necessary for a fair and comparable presentation have been included and
         are of a normal recurring nature. Operating results for the three
         months ended March 31, 1998 are not necessarily indicative of the
         results that may be expected for the year ending December 31, 1998.

NOTE 2 - INVENTORIES:

         At March 31, 1998 and December 31, 1997, inventories consisted of the
         following.

<TABLE>
<CAPTION>

                                                                           March 31,           December 31,
                                                                             1998                 1997
                                                                      -----------------    -----------------

<S>                                                                   <C>                  <C>         
Raw materials                                                             $ 15,263,618         $ 15,193,271
Work in process                                                             11,194,759           11,195,128
Finished goods                                                               1,940,813            1,117,695
                                                                      -----------------    -----------------

   Total inventories                                                      $ 28,399,190         $ 27,506,094
                                                                      =================    =================
</TABLE>




NOTE 3 - EARNINGS PER SHARE:

         The following is a reconciliation of the numerators and denominators of
         basic and diluted per share computations for income from continuing
         operations for the three month period ended March 31, 1998 as required
         by Statement of Financial Accounting Standards No. 128, Earnings Per
         Share, ("SFAS No. 128"). For the three month period ended March 31,
         1998, the effects of 2,245,812 total shares to be issued upon
         conversion of the Company's 8% Senior Subordinated Convertible Notes
         (the "8% Notes") and the Series C 10% Senior Subordinated Convertible
         Notes (the "10% Notes") were not used for computing diluted earnings
         per share because the result would be anti-dilutive. Earnings per share
         amounts for the three months ended March 31, 1997 is calculated using
         only weighted average outstanding shares of 8,996,495. For the three
         month period ended March 31, 1997, the effects of 2,543,787 total
         shares related to options to purchase common stock and shares to be
         issued upon conversion of the 10% Notes were not used for computing
         diluted earnings per share because the result would be anti-dilutive.


<TABLE>
<CAPTION>
                                                               Three months ended March 31, 1998
                                                   ----------------------------------------------------------
                                                        Income               Shares            Per-Share
                                                     (Numerator)         (Denominator)          Amounts
                                                   -----------------    -----------------   -----------------
<S>                                                <C>                  <C>                 <C>            
Basic earnings per share:
  Net earnings                                              $ 4,701            9,851,392     $            --
                                                                                            =================

Effect of dilutive securities:
  Stock options                                                                  280,071
                                                   -----------------    -----------------

Diluted earnings per share                                  $ 4,701           10,131,463     $            --
                                                   =================    =================   =================
</TABLE>




NOTE 4 - COMPREHENSIVE INCOME:

         The Company adopted Financial Accounting Standards No. 130, Reporting
         Comprehensive Income, on January 1, 1998. Comprehensive income includes
         adjustments made for foreign currency translation. Comprehensive income
         (loss) for the three months ended March 31, 1998 and 1997 was $110,581
         and ($598,224), respectively.




                                       6
<PAGE>   8




                                  SIMULA, INC.


ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF RESULTS OF OPERATIONS AND
        FINANCIAL CONDITION.

GENERAL

         The following discussion and analysis provides information that
management of Simula, Inc. (the "Company") believes is relevant to an assessment
and understanding of the Company's results of operations and financial condition
for the three month period ended March 31, 1998 compared to the same period of
the prior year. This discussion should be read in conjunction with the Interim
Consolidated Financial Statements and the Notes thereto included elsewhere in
this Form 10-Q. This Form 10-Q contains certain forward-looking statements and
information. The cautionary statements should be read as being applicable to all
related forward-looking statements wherever they appear. See "Forward Looking
Information and Risks of the Business."

OVERVIEW

         The Company designs and manufactures occupant safety systems and
devices engineered to safeguard human life in a wide range of air, ground, and
sea transportation vehicles. Utilizing its substantial proprietary technology in
energy-absorbing seating, inflatable restraints, and composite materials, the
Company focuses on reducing injury and increasing survivability in vehicle and
aircraft crashes.

         Since its founding in 1975, the Company's historic business has been as
a government and defense contractor. Additionally, commencing with acquisitions
and commercial products development since 1993, the Company has become the
largest North American-based supplier of seating systems for rail and other mass
transit vehicles and a successful new entrant in the manufacture of new
commercial airliner seating and inflatable restraints for automobiles. Utilizing
its proprietary safety technology, the Company has introduced crashworthy
systems for a variety of vehicles and aircraft including its 16g commercial
airliner passenger seat ("16g Seat") and various inflatable restraint systems
for automobiles including the Inflatable Tubular Structure ("ITS").

         In 1993, management made a strategic decision to enter the commercial
aircraft seating market to bring its proprietary energy-absorbing technologies
to a new industry and take advantage of positive industry trends. To implement
its decision, the Company completed three acquisitions that allowed it to
develop the necessary infrastructure to support future growth. In August 1993,
the Company acquired Airline Interiors, Inc. (the "Airline Acquisition"), which
was primarily involved with the refurbishment, reupholstery, reconditioning, and
reconfiguring of existing passenger seats. The Airline Acquisition provided
certain FAA certifications, enhanced the Company's management team and customer
base, and provided substantial assembly capacity. During 1994, the Company
acquired Coach and Car Equipment Corporation ("Coach and Car") and Artcraft
Industries Corp. ("Artcraft"). The acquisitions of Coach and Car and Artcraft
are collectively referred to as the 1994 Acquisitions. The 1994 Acquisitions'
existing operations included providing a majority of all manufacturing and
refurbishment of rail and mass transit seating systems in North America. The
1994 Acquisitions also provided the Company with substantial large-scale
manufacturing capacity and synergies, which are being utilized in the production
of its 16g Seat for airliners.

         In 1994, the Company made a strategic decision to enter the inflatable
restraint market for automobiles utilizing its proprietary technology, the ITS.
Through 1996, the Company completed its development of this technology and
start-up of its manufacturing facilities. In 1997, the Company began
manufacturing the ITS for sale to BMW, a major European automobile manufacturer,
which began including it in certain models of its automobiles in 1997.

         The Company's revenue has historically been derived principally from
sales of Company manufactured products. A substantial portion of its current
revenue is generated from long-term production contracts which are accounted for
under the percentage of completion method of accounting. Under this method,
revenue is recorded as production progresses so that revenue less costs incurred
to date yields the percentage of gross margin estimated for each contract.
Overall gross margin percentages can increase or decrease based upon changes in
estimated gross margin percentages over the lives of individual contracts.




                                       7
<PAGE>   9



                                  SIMULA, INC.


         The Company is a holding company for wholly owned subsidiaries which
operate in three primary business segments. The Commercial Transportation
Seating segment includes operations which primarily manufacture seating systems
for domestic and foreign passenger airlines, rail and other mass transit. The
Government and Defense segment includes operations that design and manufacture
crash resistant components, energy absorbing devices, ballistic armor and
composites principally in connection with branches of the United States armed
forces procurement. The Automobile Safety Systems segment includes operations
encompassing inflatable restraints, principally the ITS, and related technology
for automobiles. In addition, the Company maintains general corporate
operations.

RESULTS OF OPERATIONS

Three Months Ended March 31, 1998 Compared to 1997

         Revenue for the three months ended March 31, 1998 increased 57% to
$28.0 million from $17.8 million for the comparable period in 1997. This
increase was due to increased sales of 16g Seats and the ITS.

         Gross margin for the three months ended March 31, 1998 increased 39% to
$7.1 million from $5.1 million for the comparable period in 1997. The increase
in gross margin was due to the increase in revenue noted above. As a percent of
sales, gross margin for the three months ended March 31, 1998 decreased to 25%
from 28% for the comparable period in 1997. The decrease in gross margin
percentage is principally due to the transition from airline refurbishment to
high volume manufacturing of the Company's new 16g Seat. Airline refurbishment,
which has historically achieved higher gross margin percentages at relatively
low volumes, constituted a greater proportion of the Company's business in the
three months ended March 31, 1997. In addition, the significant increase in
deliveries of the 16g Seat has resulted in various cost inefficiencies and
production related expenses. Gross margin percentages were also negatively
impacted by certain Government and Defense developmental programs initiated in
the first quarter of 1998. These negative impacts were substantially offset by
the significant improvement in the gross margin percentage for the ITS. The
Company did not recognize significant revenue from the ITS in the first quarter
of 1997 while incurring pre-contract costs related to the final pre-production
development of the ITS and start-up costs related to its manufacturing
facilities in Arizona and the United Kingdom.

         Administrative expenses for the three months ended March 31, 1998
increased 12% to $5.7 million from $5.1 million for the comparable period in
1997. This increase was primarily attributable to the expansion of the corporate
and sales infrastructure related to the commercial introduction of the ITS,
including resources being utilized for sales and administration versus
pre-contract activities and research and development related to the expansion of
ITS technologies.

         Interest expense for the three months ended March 31, 1998 increased
53% to $1.5 million from approximately $952,000 for the comparable period in
1997. This increase was principally due to the issuance of $34.5 million of the
8% Senior Subordinated Convertible Notes (the "8% Notes") in April 1997. These
borrowings were made to fund the Company's growth in working capital and fixed
assets necessary to support the anticipated growth in revenues for 1997 and
subsequent years. The increase in interest expense due to the 8% Notes was
partially offset by lower borrowing on the Company's line of credit and the
conversion during the third quarter of 1997 of $9.6 million of the Series C 10%
Senior Subordinated Convertible Notes (the "10% Notes") into common stock of the
Company.

         Interest income for the three months ended March 31, 1998 represents
income from the investment by the Company of available cash in high quality
government and short-term investment grade, interest bearing securities.

         The effective  income tax rate for the three month periods ended March 
31, 1998 and 1997 approximated the Company's combined statutory rate of 40%.



                                       8
<PAGE>   10


                                  SIMULA, INC.


LIQUIDITY AND CAPITAL RESOURCES

         The Company's liquidity is greatly impacted by the nature of the
billing provisions under its contracts. Generally, in the early period of
contracts, cash expenditures and accrued profits are greater than allowed
billings while contract completion results in billing previously unbilled costs
and profits. Contract and trade receivables, net of advances on contracts,
increased approximately $2.0 million for the three months ended March 31, 1998
due principally to the throughput on certain Government and Defense contracts
and a rail contract for which substantial production was initiated in the first
quarter of 1998.

         Operating activities required the use of $4.6 million of cash during
the three months ended March 31, 1998, compared to the use of $3.4 million of
cash during the same period in 1997. Cash used by operating activities in the
1998 period was primarily used to reduce accounts payable by $3.4 million and to
fund the increase in contract receivables noted above. The reduction in accounts
payable was principally made in connection with price negotiations with
suppliers of components for the Company's 16g Seat. The Company negotiated
certain material price reductions with these vendors in exchange for reduced
terms and increased volumes. In addition, inventories increased approximately
$900,000. This increase was due to an increase in 16g Seat and ITS inventory
necessary to support anticipated future deliveries offset by reductions in
inventory for the Government and Defense and rail operations as certain
contracts began production.

         Investing activities required the use of $1.4 million of cash during
the three months ended March 31, 1998 primarily for the purchase of
manufacturing equipment for the ITS located at the Company's operations in
Arizona and the United Kingdom and certain improvements to these facilities.

         Financing activities provided $3.4 million of cash during the three
months ended March 31, 1998 principally from $3.7 million in net borrowings
under the Company's $20 million revolving line of credit offset by principal
payments under other debt arrangements for scheduled maturities.

         Included in current portion of long-term debt are the 12% Senior
Subordinated Notes (the "12% Notes"), which total $5.7 million and are due in
November 1998. The Company is currently evaluating various alternatives to repay
or refinance these notes on a long term basis prior to their maturity.

         The Company believes it has sufficient manufacturing capacity in place
at March 31, 1998 to meet its foreseeable delivery requirements. The Company
anticipates cash on hand, cash provided by operating activities once the 16g
Seat and ITS reach full scale production and the availability under its bank
credit facilities will be sufficient to meet its current and foreseeable working
capital requirements. The Company may, however, seek to obtain additional
capital should demand for its products exceed current capacity. The raising of
additional capital in public markets will be primarily dependent upon prevailing
market conditions and demand for the Company's technologies and products.

INFLATION

         The Company does not believe that it is significantly impacted by
inflation.

RESEARCH AND DEVELOPMENT

         The Company's research and development occurs under fixed-price,
government-funded contracts and Company-sponsored efforts. Historically,
research and development efforts have fluctuated based upon available
government-funded contracts and available Company funding. The Company
anticipates that future fluctuations may also occur as a result of efforts to
expand its inflatable restraint, commercial airliner and helicopter seating, and
rail seating technologies.

SEASONALITY

         The Company does not believe that it is currently significantly
impacted by seasonal factors.


                                       9
<PAGE>   11


                                  SIMULA, INC.


FORWARD LOOKING INFORMATION AND RISKS OF THE BUSINESS

         Commencing in fiscal 1997, the Company entered large scale production
of the ITS and 16g Seat. Significant investments to transition to high volume
manufacturing for these products were also made in 1997, which affected
earnings. The Company began to realize significant revenues from the
introduction of these products in 1997 and anticipates continued growth in 1998
and 1999. During this period, the other core businesses of the Company are
expected to remain at current revenue levels. The Company's current focus is on
controlling costs and eliminating inefficiencies resulting from the faster than
anticipated rate of growth in its new product lines, principally the 16g Seat,
and this focus should result in a positive impact on earnings.

         In 1997, the Company experienced some parts and raw materials
shortages, vendor delays and quality problems that caused delays in production
and deliveries. The Company has addressed these issues and believes that it has
established an adequate multiple source supplier base that is industry standard.
However, certain components of the Company's products are proprietary or highly
regulated, including certain types of foam, hydrolocks and woven materials, and
shortages of these components could cause disruptions of production from time to
time. In 1998, the Company will focus on further broadening it vendor base and
reliability.

         In 1997, one customer, Continental Airlines, accounted for 16% of the
Company's revenue. The Company anticipates that it will fulfill current delivery
requirements to Continental Airlines in early 1998 and it will not represent as
significant of a customer in 1998 and following years. The Company believes that
in the ordinary course of its airline seating business, the programs with
Continental Airlines will be replaced by programs with other customers. Because
of the significant growth in its airline seat business, management believes that
in 1998, the Company can focus on broadening its customer base and scheduling
production slots across a wider range of customers.

         Projected operating results and capital needs will be affected by a
wide variety of factors which could adversely impact revenues, profitability and
cash flows, many of which are beyond the control of the Company. In addition to
the factors described above, the other factors include manufacturing capacity
and yield; costs of labor, raw materials, supplies, and equipment; reliability
of vendor base; contract mix and shifting production and delivery schedules
among the Company's three business segments; amount of resources committed to
independent research and development from time to time; success in building
strategic alliances with large prime contractors and first tier suppliers to
OEMs; the level of orders which are received and can be shipped and invoiced in
a quarter; customer order patterns and seasonality; the cyclical nature of the
airline, rail and automobile industries and other markets addressed by the
Company's products; the level and makeup of military expenditures; technological
changes; competition and competitive pressures on pricing; and economic
conditions in the United States and worldwide markets served by the Company. The
Company's products are incorporated into a variety of transportation vehicles. A
slowdown in demand for new transportation vehicles or modifications services to
transportation vehicles as a result of economic or other conditions in the
United States or worldwide markets served by the Company and its customers or
other broad-based factors could adversely affect the Company's operating results
or financial condition.



                                       10
<PAGE>   12



                                  SIMULA, INC.


ITEM 6.  EXHIBITS AND REPORTS.

(a) The following Exhibits are included pursuant to Item 601 of Regulation S-K.

<TABLE>
<CAPTION>

  NO.                                               DESCRIPTION                                            REFERENCE
  ---                                               -----------                                            ---------

<S>                                                                                                        <C>
   3.1      Articles of Incorporation of Simula, Inc., as amended and restated..........................      (4)
   3.2      Bylaws of Simula, Inc., as amended and restated.............................................      (1)
   4.2      Indenture dated December 17, 1993, as amended...............................................      (2)
   4.5      Supplemental Indenture No. 2 dated September 12, 1996, entered into in connection with the
            Company's issuance of Series C 10% Senior Subordinated Convertible Notes....................      (6)
   4.6      Supplemental Indenture No.3, effective March 14,  1997, amending the Indenture of
            Simula, Inc. dated December 17, 1993........................................................      (7)
   4.7      Indenture dated April 1, 1997, in connection with the Company's issuance of the 8% Senior
            Subordinated Convertible Notes due May 1, 2004..............................................      (7)
  10.11     1992 Stock Option Plan......................................................................      (1)
  10.12     1992 Restricted Stock Plan..................................................................      (1)
  10.21     1994 Stock Option Plan......................................................................      (3)
  10.24     Amended Loan Agreement with Wells Fargo Bank, N.A. dated December 20, 1996..................      (6)
  10.26     Simula, Inc. Employee Stock Purchase Plan...................................................      (4)
 *10.29     Form of Change of Control Agreements, as amended and restated, between the Company and
            Donald W. Townsend, Bradley P. Forst, Sean K. Nolen, James A. Saunders, Donald Rutter, and
            Randall L. Taylor ..........................................................................
  10.30     Form of Employment Agreements between the Company and Donald W. Townsend, Bradley P. Forst,
            Sean K. Nolen, James A. Saunders, and Randall L. Taylor.....................................      (8)
  18.       Preference Letter re: change in accounting principles.......................................      (5)
 *21.       Subsidiaries of the Company
  24.       Powers of Attorney - Directors..............................................................      (8)
 *27.       Financial Data Schedule
</TABLE>

----------

* Filed herewith.

      (1)   Filed with Registration Statement on Form S-18, No. 33-46152-LA,
            under the Securities Act of 1933, effective April 13, 1992.

      (2)   Filed with Registration Statement on Form SB-2, No. 33-61028 under
            the Securities Act of 1933, effective December 10, 1993.

      (3)   Filed with Registration Statement on Form SB-2, No. 33-87582, under
            the Securities Act of 1933, effective December 28, 1994.

      (4)   Filed with Definitive Proxy on May 14, 1996, for the Company's
            Annual Meeting of Shareholders held on June 20, 1996.

      (5)   Filed with Report on Form 10-Q/A for the quarter ended June 30,
            1996.

      (6)   Filed with Report on Form 10-K for the year ended December 31, 1996.

      (7)   Filed with Registration Statement on Form S-3, No. 333-13499, under
            the Securities Act of 1993, effective April 24, 1997.

      (8)   Filed with Report on Form 10-K for the year ended December 31,
            1997.

(b) No reports on Form 8-K have been filed during the reporting period.





                                       11
<PAGE>   13



                                  SIMULA, INC.

                                    SIGNATURE

Pursuant to the requirements of the Securities Exchange Act of 1934, the
Registrant has duly caused this report on Form 10-Q for the quarter ended March
31, 1998 to be signed on its behalf by the undersigned thereunto duly
authorized.


                                                     SIMULA, INC.



DATE:             May 13, 1998                         /s/  Donald W. Townsend
         --------------------------------            -------------------------

                                                     DONALD W. TOWNSEND
                                                     President
                                                     Chief Operating Officer


                                                       /s/  Sean K. Nolen
                                                     -------------------------
                                                     SEAN K. NOLEN
                                                     Vice President of Finance
                                                     Chief Financial Officer



                                       12


<PAGE>   14



                                  SIMULA, INC.


ITEM 6.  EXHIBITS AND REPORTS.

(a) The following Exhibits are included pursuant to Item 601 of Regulation S-K.

<TABLE>
<CAPTION>

  NO.                                               DESCRIPTION                                            REFERENCE
  ---                                               -----------                                            ---------

<S>                                                                                                        <C>
   3.1      Articles of Incorporation of Simula, Inc., as amended and restated..........................      (4)
   3.2      Bylaws of Simula, Inc., as amended and restated.............................................      (1)
   4.2      Indenture dated December 17, 1993, as amended...............................................      (2)
   4.5      Supplemental Indenture No. 2 dated September 12, 1996, entered into in connection with the
            Company's issuance of Series C 10% Senior Subordinated Convertible Notes....................      (6)
   4.6      Supplemental Indenture No.3, effective March 14,  1997, amending the Indenture of
            Simula, Inc. dated December 17, 1993........................................................      (7)
   4.7      Indenture dated April 1, 1997, in connection with the Company's issuance of the 8% Senior
            Subordinated Convertible Notes due May 1, 2004..............................................      (7)
  10.11     1992 Stock Option Plan......................................................................      (1)
  10.12     1992 Restricted Stock Plan..................................................................      (1)
  10.21     1994 Stock Option Plan......................................................................      (3)
  10.24     Amended Loan Agreement with Wells Fargo Bank, N.A. dated December 20, 1996..................      (6)
  10.26     Simula, Inc. Employee Stock Purchase Plan...................................................      (4)
 *10.29     Form of Change of Control Agreements, as amended and restated, between the Company and
            Donald W. Townsend, Bradley P. Forst, Sean K. Nolen, James A. Saunders, Donald Rutter, and
            Randall L. Taylor ..........................................................................
  10.30     Form of Employment Agreements between the Company and Donald W. Townsend, Bradley P. Forst,
            Sean K. Nolen, James A. Saunders, and Randall L. Taylor.....................................      (8)
  18.       Preference Letter re: change in accounting principles.......................................      (5)
 *21.       Subsidiaries of the Company
  24.       Powers of Attorney - Directors..............................................................      (8)
 *27.       Financial Data Schedule
</TABLE>

----------

* Filed herewith.

      (1)   Filed with Registration Statement on Form S-18, No. 33-46152-LA,
            under the Securities Act of 1933, effective April 13, 1992.

      (2)   Filed with Registration Statement on Form SB-2, No. 33-61028 under
            the Securities Act of 1933, effective December 10, 1993.

      (3)   Filed with Registration Statement on Form SB-2, No. 33-87582, under
            the Securities Act of 1933, effective December 28, 1994.

      (4)   Filed with Definitive Proxy on May 14, 1996, for the Company's
            Annual Meeting of Shareholders held on June 20, 1996.

      (5)   Filed with Report on Form 10-Q/A for the quarter ended June 30,
            1996.

      (6)   Filed with Report on Form 10-K for the year ended December 31, 1996.

      (7)   Filed with Registration Statement on Form S-3, No. 333-13499, under
            the Securities Act of 1993, effective April 24, 1997.

      (8)   Filed with Report on Form 10-K for the year ended December 31,
            1997.

(b) No reports on Form 8-K have been filed during the reporting period.





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