-----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, TUJreD4RuV0vlE6LUSGbmho5xGNSdKAU3QOyWzyXUYZvX86F2eFE7OPqXijefJfK yMgiiorRdvt3pQgQjSX9aw== 0000950124-97-004154.txt : 19970812 0000950124-97-004154.hdr.sgml : 19970812 ACCESSION NUMBER: 0000950124-97-004154 CONFORMED SUBMISSION TYPE: 10-Q PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 19970531 FILED AS OF DATE: 19970811 SROS: NASD FILER: COMPANY DATA: COMPANY CONFORMED NAME: KNUSAGA CORP CENTRAL INDEX KEY: 0000225544 STANDARD INDUSTRIAL CLASSIFICATION: PUBLIC BUILDING AND RELATED FURNITURE [2531] IRS NUMBER: 621004034 STATE OF INCORPORATION: DE FISCAL YEAR END: 0831 FILING VALUES: FORM TYPE: 10-Q SEC ACT: 1934 Act SEC FILE NUMBER: 000-07795 FILM NUMBER: 97655148 BUSINESS ADDRESS: STREET 1: 3578 S VAN DYKE HWY CITY: ALMONT STATE: MI ZIP: 48003 BUSINESS PHONE: 8107988567 FORMER COMPANY: FORMER CONFORMED NAME: AMERICANADA LTD DATE OF NAME CHANGE: 19600201 10-Q 1 FORM 10-Q 1 SECURITIES ANS EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q ANNUAL REPORT PURSUANT TO SECTION 13 OR 15 (D) OF THE SECURITIES EXCHANGE ACT OF 1934 For the Quarter Ended May 31, 1997 Commission File Number 0-7795 KNUSAGA CORPORATION (Exact name of Registrant as specified in its charter) DELAWARE (State or other jurisdiction of incorporation or organization) 62-1004034 (I.R.S. Employer Identification Number) 3578 S. VAN DYKE ALMONT, MI. 48803 (Address of principal executive offices Zip Code) Registrant's telephone number, include area code: 810/798-8567 Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Sectioin 13 or 15 (D) of the Securities Exchange Act of 1934 during the preceding twelve months (or 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 Shares of Common Stock Par Value $.01, outstanding: 7,000,000. 2 RESULTS OF OPERATIONS Net sales increased 10% in the third quarter of 1997, up $200,000 over the third quarter of 1996. For the first nine months, net sales were $7 million or 12% higher than the same period in 1996. The majority of the sales increase is due to increased production and tubing requirements of our customer, Ford Truck Division, Louisville, Kentucky. There are no increases in net sales for this period due to selling price increases. The reason being is that the automotive-truck industry does not allow price increases on parts once placed in production. Gross profits from operations increased to 26.5% of sales during the quarter ending May 31, 1997, as compared to the year earlier period of 9.8%. This positive result is primarily due to a reduction of raw material cost and, secondarily, to increased direct labor efficiency. Selling and administrative expenses increased to 11.5% of sales during the quarter ending May 31, 1997, as compared to the year earlier period of 7.2%. The nine month comparison is 10.0% for May 31, 1997, and 8.6% for May, 1996. The increased dollar amount of $180,000 is due to increased personnel ($110,000), professional services ($35,000), and taxes ($35,000). Also, during the quarter, Chrysler Corp. issued a check to us in the amount of $350,000 (recorded under Misc. Income) in final payment of all expenses incurred because Knusaga Corp. is no longer a supplier of seats for the van line. This discontinuance of production occurred in the spring of 1995. Net income increased to a positive $454,000 in the quarter as compared to $6,000 during the same period during 1996. The nine month period produced net income of $622,000 as compared to a loss of $145,000 for the previous year. The significant improvement in net income is the result of stable margins on improved sales and the reduction of material cost and other expenses. -1- 3 LIQUIDITY AND SOURCES OF CAPITAL The company's net cash flow position for the nine months ending May 31, 1997, generated $752,000 of cash from operating activities as compared to a $96,000 decrease for the same period a year ago. During this period, we purchased $125,000 of equipment, decreased our long-term notes $203,000, and reduced our short-term line of credit $420,000, resulting in an ending cash balance of $38,241. The Company expects that available cash and existing short-term lines of credit will be sufficient to meet normal operating requirements over the near term. CONTINGENT MATTERS There are no contingencies or consequential uncertainties known that will materially affect the financial information as presented. -2- 4 KNUSAGA CORPORATION BALANCE SHEET (UNAUDITED) MAY 31, 1997
ASSETS MAY 31, 1997 CASH $38,241 ACCOUNTS RECEIVABLE $1,371,628 ACCOUNTS RECEIVABLE - OTHER $62,600 INVENTORIES $505,248 PREPAID EXPENSE $70,248 ---------- TOTAL CURRENT ASSETS $2,047,965 NET PROPERTY, PLANT AND EQUIPMENT $2,068,097 OTHER ASSETS $40,424 ---------- TOTAL ASSETS $4,156,486 LIABILITIES ACCOUNTS PAYABLE $728,134 NOTES PAYABLE $413,847 ACCRUED LIABILITIES $329,634 ---------- TOTAL CURRENT LIABILITIES $1,471,615 LONG TERM DEBT $1,708,383 ---------- TOTAL LIABILITIES $3,179,998 STOCKHOLDERS EQUITY (DEFICIENCY) Common stock, par value $.01 per share authorized 7,000,000 shares issued and outstanding. $70,000 Preferred stock, par value $.01 per share authorized 500,000 shares, issued and outstanding 175,000 of Class A $1.00 stated value, 4% non-cumlative, non- voting. $175,000 ADDITIONAL PAID-IN CAPITAL $366,365 RETAINED EARNINGS $365,123 ---------- TOTAL STOCKHOLDERS EQUITY $976,488 ---------- TOTAL LIABILITIES AND STOCKHOLDERS EQUITY $4,156,486
5 KNUSAGA CORPORATION STATEMENT OF CASH FLOW (UNAUDITED) NINE MONTHS ENDED MAY 31, 1997 AND MAY 31, 1996
(UNAUDITED) NINE MONTHS ENDED MAY 31, 1997 MAY 31, 1996 CASH PROVIDED BY (USED FOR) OPERATIONS NET INCOME (LOSS) Before extraordinary items $622,448 ($145,026) NONCASH EXPENSE INCLUDED IN NET INCOME DEPRECIATION $155,287 $140,313 (INCREASE) DECREASE IN: ACCOUNTS RECEIVABLE ($329,258) $33,513 INVENTORIES $953 $16,108 PREPAID EXPENSES $41,790 ($17,102) OTHER ASSETS $61,010 ($18,430) INCREASE (DECREASE) IN: ACCOUNTS PAYABLE $58,927 ($91,172) ACCRUED LIABILITIES $141,256 ($13,930) ------------ ------------- NET CASH PROVIDED BY (USED FOR) OPERATING ACTIVITIES $752,413 ($95,726) CASH PROVIDED BY (USED FOR) INVESTING ACTIVITIES PURCHASES OF EQUIPMENT ($125,442) ($346,064) ------------ ------------- NET CASH PROVIDED BY (USED FOR) $626,971 ($441,790) BEFORE INVESTING ACTIVITIES CASH PROVIDED BY (USED FOR) FINANCING ACTIVITIES DEBT INCREASE (DECREASE) SHORT-TERM ($420,000) $322,000 LONG-TERM ($202,750) $30,256 ------------ ------------- NET CASH PROVIDED BY (USED FOR) FINANCING ACTIVITIES ($622,750) $352,256 INCREASE (DECREASE) IN CASH $4,221 ($89,534) BALANCE AT BEGINNING OF PERIOD $34,020 $98,402 BALANCE AT END OF PERIOD $38,241 $8,868
6 KNUSAGA CORPORATION STATEMENT OF INCOME (UNAUDITED) THREE MONTHS ENDED MAY 31, 1997 AND MAY 31, 1996
(UNAUDITED) (UNAUDITED) THREE MONTHS ENDED NINE MONTHS ENDED MAY 31, 1997 MAY 31, 1996 MAY 31, 1997 MAY 31, 1996 NET SALES $ 2,488,274 $ 2,263,297 $ 6,999,126 $ 6,277,542 COST OF GOODS SOLD $ 1,828,113 $ 2,042,301 $ 5,563,302 $ 5,801,260 ----------- ----------- ----------- ----------- GROSS PROFIT $ 660,161 $ 220,996 $ 1,435,824 $ 476,282 SELLING, GENERAL AND ADMINISTRATIVE EXPENSES $ 287,162 $ 162,246 $ 697,995 $ 538,173 MISC INCOME (EXPENSE) $ 320,522 ($52,788) $ 205,156 ($143,952) ----------- ----------- ----------- ----------- INCOME (LOSS) BEFORE TAXES $ 693,521 $5,962 $ 942,985 ($205,843) PROVISION FOR FEDERAL INCOME TAXES $ 239,835 $ 320,535 ($60,817) ----------- ----------- ----------- ----------- NET INCOME BEFORE EXTRAORDINARY ITEMS $ 453,686 $5,962 $ 622,450 ($145,026) EXTRAORDINARY ITEMS: TAX BENEFIT OF OPERATING LOSS CARRYFORWARD ----------- ----------- ----------- ----------- NET INCOME $ 453,686 $5,962 $ 622,450 ($145,026) PER SHARE OF COMMON STOCK AND COMMON STOCK EQUIVALENTS: NET INCOME (LOSS) PER SHARE 0.07 0.01 0.09 (0.02) CASH DIVIDENDS NONE NONE NONE NONE AVERAGE OUTSTANDING SHARES 7,000,000 7,000,000 7,000,000 7,000,000
THE FINANCIAL STATEMENTS INCLUDED IN THIS REPORT REFLECT ALL ADJUSTMENTS, WHICH IN THE OPINION OF MANAGEMENT, ARE NECESSARY FOR A FAIR PRESENTATION 7 INDEX TO EXHIBITS EXHIBIT NO. DESCRIPTION - ----------- ----------- 27 Financial Data Schedule EX-27 2 EXHIBIT 27
5 9-MOS AUG-31-1997 SEP-01-1996 MAY-01-1997 38,241 0 1,434,228 0 505,248 2,047,965 3,019,667 951,570 4,156,486 1,471,616 788,272 0 175,000 70,000 731,488 4,156,486 6,918,702 6,999,126 5,563,302 6,261,297 205,156 0 142,165 942,985 320,535 622,450 0 0 0 622,450 .09 .09
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