Just a quick note on how I finally figured out this simple problem. Sometimes I like to make things harder then they are. 🙂
Long version:
$date = "03094";
$a1 = substr($ad,2,3);
$a2 = substr($ad,0,2);
$ad = date("m/d/Y", mktime(0,0,0,1,$a1,$a2));
echo $ad
// 04/04/2003