-----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, RidirtIi66YmEO0WpnQro78BCY1OgguICVN5z9LQeGbmdrW/uOUOKoGxK9873eV4 BXC5pdqxQj4Cwfm1i05hqg== 0000950124-98-001362.txt : 19980317 0000950124-98-001362.hdr.sgml : 19980317 ACCESSION NUMBER: 0000950124-98-001362 CONFORMED SUBMISSION TYPE: 10QSB PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 19971130 FILED AS OF DATE: 19980316 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: 10QSB SEC ACT: SEC FILE NUMBER: 000-07795 FILM NUMBER: 98566217 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 10QSB 1 FORM 10QSB 1 SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-QSB ANNUAL REPORT PURSUANT TO SECTION 13 OR 15 (D) OF THE SECURITIES EXCHANGE ACT OF 1934 For the Quarter Ended November 30, 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 office and 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 Section 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. X YES NO --- --- Shares of Common Stock Par Value $.04, outstanding: 7,000,000. -1- 2 RESULTS OF OPERATIONS Net Sales increased 52% in the first quarter of fiscal year ending August 1998 to $2,988,000. This represents a volume increase of $1,018,000 as compared to the first quarter of 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 price increases in net sales for this period. The reason being is that the truck industry does not allow price increases on parts once placed in production. Gross profits from operations increased to 26.1% of sales during the quarter November 30, 1997, as compared to year earlier period of 12.9%. This positive result is primarily due to a reduction of raw material cost, and secondarily to increased labor efficiency. Selling and Administrative expenses decreased to 8.0% of sales during the quarter as compared to 9.5% of the year earlier period. Net income increased to $327,000 for the quarter as compared to $14,000 of 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. LIQUIDITY AND SOURCES OF CAPITAL The company's cash flow position before financing activities for the three months ending November 30, 1997, generated $383,000. This cash flow, along with a bank balance reduction of $260,000, was used to reduce short and long-term debt. CONTINGENT MATTERS There are no contingencies or consequential uncertainties known that will materially affect the financial information as presented. -2- 3 KNUSAGA CORPORATION BALANCE SHEET (UNAUDITED) NOVEMBER 30, 1997
ASSETS November 30, 1997 CASH $ 16,234 ACCOUNTS RECEIVABLE $1,354,629 ACCOUNTS RECEIVABLE - OTHER $ 94,143 INVENTORIES $ 473,344 PREPAID EXPENSE $ 94,312 ---------- TOTAL CURRENT ASSETS $2,032,662 NET PROPERTY, PLANT AND EQUIPMENT $2,089,733 OTHER ASSETS $ 2,646 ---------- TOTAL ASSETS $4,125,041 LIABILITIES ACCOUNTS PAYABLE $ 625,283 NOTES PAYABLE $ 268,320 ACCRUED LIABILITIES $ 307,828 ---------- TOTAL CURRENT LIABILITIES $1,201,431 LONG TERM DEBT $1,316,540 ---------- TOTAL LIABILITIES $2,517,971 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-cumulative, non-voting. $ 175,000 ADDITIONAL PAID-IN CAPITAL $ 366,365 RETAINED EARNINGS $ 995,705 ---------- TOTAL STOCKHOLDERS EQUITY $1,607,070 ---------- TOTAL LIABILITIES AND STOCKHOLDERS EQUITY $4,125,041
-3- 4 KNUSAGA CORPORATION STATEMENT OF INCOME (UNAUDITED) THREE MONTHS ENDED NOVEMBER 30, 1997 AND NOVEMBER 30, 1996
(UNAUDITED) THREE MONTHS ENDED NOVEMBER 30, 1997 NOVEMBER 30, 1996 NET SALES $2,988,804 $1,971,113 COST OF GOODS SOLD $2,208,638 $1,716,464 ---------- ---------- GROSS PROFIT $ 780,166 $ 254,649 SELLING, GENERAL AND ADMINISTRATIVE EXPENSES $ 238,204 $ 188,127 MISC. INCOME (EXPENSE) $ 44,306 ($ 50,366) ---------- ---------- INCOME (LOSS) BEFORE TAXES $ 497,657 $ 16,156 PROVISION FOR FEDERAL INCOME TAXES $ 170,195 $ 2,500 ---------- ---------- NET INCOME BEFORE EXTRAORDINARY ITEMS $ 327,462 $ 13,656 EXTRAORDINARY ITEMS: TAX BENEFIT OF OPERATING LOSS CARRYFORWARD ---------- ---------- NET INCOME $ 327,462 $ 13,656 PAR SHARE OF COMMON STOCK AND COMMON STOCK EQUIVALENTS: 7,000,000 7,000,000 AVERAGE OUTSTANDING SHARES .04 0.00
THE FINANCIAL STATEMENTS INCLUDED IN THIS REPORT REFLECT ALL ADJUSTMENTS, WHICH, IN THE OPINION OF MANAGEMENT, ARE NECESSARY FOR FAIR PRESENTATION. -4- 5 KNUSAGA CORPORATION STATEMENT OF CASH FLOW (UNAUDITED) THREE MONTHS ENDED NOVEMBER 30, 1997 AND NOVEMBER 30, 1996
(UNAUDITED) THREE MONTHS ENDED NOVEMBER 30, 1997 NOVEMBER 30, 1996 CASH PROVIDED BY (USED FOR) OPERATIONS NET INCOME (LOSS) BEFORE EXTRAORDINARY ITEMS, NON-CASH EXPENSE INCLUDED IN NET INCOME $327,462 $ 13,656 DEPRECIATION $ 71,250 $ 50,787 (INCREASE) DECREASE IN: ACCOUNTS RECEIVABLE $ 70,915 ($174,788) INVENTORIES $100,109 $ 32,002 PREPAID EXPENSES $ 8,759 $ 40,909 OTHER ASSETS ($ 62,100) ($ 2,941) INCREASE (DECREASE) IN: ACCOUNTS PAYABLE ($ 84,588) $ 35,691 ACCRUED LIABILITIES $ 21,197 $ 33,859 --------- --------- NET CASH PROVIDED BY (USED FOR) OPERATING ACTIVITIES $453,004 $ 29,175 CASH PROVIDED BY (USED FOR) INVESTING ACTIVITIES PURCHASES OF EQUIPMENT ($ 69,706) ($ 54,873) --------- --------- NET CASH PROVIDED BY (USED FOR) INVESTING ACTIVITIES ($ 69,706) ($ 54,873) CASH PROVIDED BY (USED FOR) BEFORE FINANCING ACTIVITIES $383,298 ($ 25,698) CASH PROVIDED BY (USED FOR) FINANCING ACTIVITIES DEBT INCREASE (DECREASE) SHORT-TERM ($580,000) $105,000 LONG-TERM ($ 63,358) ($ 91,675) --------- --------- NET CASH PROVIDED BY (USED FOR) FINANCING ACTIVITIES ($643,358) $ 13,325 INCREASE (DECREASE) IN CASH ($260,060) ($ 12,373) BALANCE AT BEGINNING OF PERIOD $276,294 $ 34,020 BALANCE AT END OF PERIOD $ 16,234 $ 21,647
-5- 6 EXHIBIT INDEX -------------
Exhibit No. Description - ----------- ----------- 27 Financial Data Schedule
EX-27 2 FINANCIAL DATA SCHEDULE
5 3-MOS AUG-31-1998 SEP-01-1997 NOV-30-1997 16,234 0 1,448,772 0 473,344 2,032,662 3,120,217 1,030,484 4,125,041 1,201,431 509,465 0 175,000 70,000 1,432,070 4,125,041 2,988,804 2,989,272 2,208,638 2,446,842 44,306 0 44,935 497,657 170,195 327,462 0 0 0 327,462 .04 .04
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