-----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, LqNSFY+IsJwP1Dfd/tNgoz+gD+8GW63p+sOSwEROO0veYoyKhEfm0BAg0FwQ9chJ GcL30VtHilnLoJVelauFkQ== 0000950124-01-501306.txt : 20010517 0000950124-01-501306.hdr.sgml : 20010517 ACCESSION NUMBER: 0000950124-01-501306 CONFORMED SUBMISSION TYPE: 10QSB PUBLIC DOCUMENT COUNT: 1 CONFORMED PERIOD OF REPORT: 20010228 FILED AS OF DATE: 20010516 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: 1641024 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 k62557e10qsb.txt 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 February 28, 2001 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 $.01, outstanding: 7,000,000. -1- 2 RESULTS OF OPERATIONS Net sales decreased 36.5% in the second quarter of the fiscal year ending August 2001 to $2,176,815 from $3,429,444 a year ago. This is a result of a sharp decline in both of the markets served by the registrant, heavy trucks and recreational vehicles. There did not appear to be any decline in the registrant's market share in either of these markets The registrant operated at a $74,208 loss in the second quarter of the 2001 fiscal year versus a profit of $30,681 in the second quarter a year ago. This was a result of the decrease in sales volume. Selling, general, and administrative expenses decreased 21.0% to $253,783 in the second quarter of fiscal 2001 versus $321,309 in the year ago quarter, in response to the reduction in sales. The Company's operations are classified into two principal reportable segments that provide different products or services. Separate management of each segment is required because each business unit is subject to different marketing, production and technology strategies. Below is summarized segmental data for the six months ended February 28, 2001 and February 29, 2000.
- ------------------------ --------------------------------- ----------------------------------- ----------------------------------- TUBING SEAT TRACK TOTAL - ------------------------ --------------------------------- ----------------------------------- ----------------------------------- 2001 2000 2001 2000 2001 2000 - ------------------------ --------------- ----------------- ----------------- ----------------- ----------------- ----------------- External Revenue 3,205,161 4,611,209 1,500,798 2,161,753 4,705,959 6,772,961 - ------------------------ --------------- ----------------- ----------------- ----------------- ----------------- ----------------- Intersegment Revenue 0 0 0 0 0 0 - ------------------------ --------------- ----------------- ----------------- ----------------- ----------------- ----------------- Profit (loss) (115,918) (251,907) 73,259 292,773 (42,659) 40,866 - ------------------------ --------------- ----------------- ----------------- ----------------- ----------------- -----------------
LIQUIDITY AND SOURCES OF CAPITAL $407,253 of shareholder debt plus $517,927 of accrued interest was converted to paid in capital during the first quarter of fiscal 2001. There was no net effect on cash but equity increased by $925,180. Operations during the six months of the current fiscal year consumed $55,515 of cash, equipment purchases consumed $23,332, and there was a reduction in bank debt of $235,888, resulting in a negative cash flow of $256,220 for the period. 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) FEBRUARY 28, 2001
ASSETS February 28, 2001 CASH $ 192,317 ACCOUNTS RECEIVABLE $ 1,476,753 ACCOUNTS RECEIVABLE - OTHER $ 31,943 INVESTMENT IN JOINT VENTURE $ (2,634) INVENTORIES $ 1,316,321 PREPAID EXPENSE $ 114,589 ----------- TOTAL CURRENT ASSETS $ 3,129,289 NET PROPERTY, PLANT AND EQUIPMENT $ 2,327,312 OTHER ASSETS $ 14,704 ----------- TOTAL ASSETS $ 5,471,305 LIABILITIES ACCOUNTS PAYABLE $ 996,671 NOTES PAYABLE $ 1,647,613 ACCRUED LIABILITIES $ 272,776 ----------- TOTAL CURRENT LIABILITIES $ 2,917,060 LONG TERM DEBT $ 293,526 TOTAL LIABILITIES STOCKHOLDERS EQUITY (DEFICIENCY) Common Stock, par value $.01 per share authorized $ 70,007 7,000,000 shares issued and outstanding. Preferred stock, par value $.01 per share $ 175,000 authorized 500,000 shares, issued and outstanding 175,000 of Class A $1.00 stated value, 4% non-cumulative, non-voting. ADDITIONAL PAID-IN CAPITAL $ 1,291,545 RETAINED EARNINGS $ 831,510 ----------- NOTE RECEIVABLE SHAREHOLDER (107,343) TOTAL STOCKHOLDERS EQUITY $ 2,260,719 ----------- TOTAL LIABILITIES AND STOCKHOLDERS EQUITY $ 5,471,305
-3- 4 KNUSAGA CORPORATION STATEMENT OF INCOME (UNAUDITED) THREE MONTHS ENDED FEBRUARY 28, 2001 AND FEBRUARY 29, 2000
(UNAUDITED) (UNAUDITED) THREE MONTHS ENDED SIX MONTHS ENDED FEBRUARY 28, FEBRUARY 29, FEBRUARY 28, FEBRUARY 29, 2001 2000 2001 2000 NET SALES $ 2,176,820 $ 3,429,444 $ 4,705,959 $ 6,772,961 COST OF GOODS SOLD $ 1,985,869 $ 2,984,028 $ 4,194,646 $ 5,943,705 ----------- ----------- ----------- ----------- GROSS PROFIT $ 190,951 $ 445,417 $ 511,313 $ 829,256 SELLING, GENERAL AND ADMINISTRATIVE EXPENSES $ 253,783 $ 321,309 $ 551,632 $ 624,033 MISC. INCOME (EXPENSE) ($ 32,429) ($ 56,487) ($ 174,687) ($ 106,908) ----------- ----------- ----------- ----------- INCOME (LOSS) BEFORE TAXES ($ 95,261) $ 67,621 ($ 215,012) $ 98,315 PROVISION FOR FEDERAL INCOME TAXES ($ 21,053) $ 36,940 ($ 42,659) $ 57,449 ----------- ----------- ----------- ----------- NET INCOME BEFORE EXTRAORDINARY ITEMS ($ 74,208) $ 30,681 ($ 172,353) $ 40,866 EXTRAORDINARY ITEMS: $-0- $-0- $-0- $-0- TAX BENEFIT OF OPERATING LOSS CARRYFORWARD ----------- ----------- ----------- ----------- NET INCOME ($ 74,208) $ 30,681 ($ 172,353) $ 40,866 PAR SHARE OF COMMON STOCK AND COMMON STOCK EQUIVALENTS: AVERAGE OUTSTANDING SHARES 7,000,000 7,000,000 7,000,000 7,000,000 .01 .00 (.02) (.01)
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) SIX MONTHS ENDED FEBRUARY 28, 2001 AND FEBRUARY 29, 2000
(UNAUDITED) SIX MONTHS ENDED FEBRUARY 28, FEBRUARY 29, 2001 2000 CASH PROVIDED BY (USED FOR) OPERATIONS NET INCOME (LOSS) BEFORE EXTRAORDINARY ITEMS, ($172,353) $ 40,865 NON-CASH EXPENSE INCLUDED IN NET INCOME DEPRECIATION $189,055 $163,532 (INCREASE) DECREASE IN: ACCOUNTS RECEIVABLE $141,215 $165,590 INVENTORIES ($ 64,751) ($230,831) PREPAID EXPENSES ($ 61,783) $ 1,262 OTHER ASSETS $ 12,421 ($ 22,950) INCREASE (DECREASE) IN: ACCOUNTS PAYABLE ($174,441) $423,145 ACCRUED LIABILITIES ($739,216) ($142,811) --------- --------- DEFERRED TAXES ($ 22,500) --------- NET CASH PROVIDED BY (USED FOR) ($ 55,515) $397,804 OPERATING ACTIVITIES CASH PROVIDED BY (USED FOR) INVESTING ACTIVITIES PURCHASES OF EQUIPMENT $ 23,332 ($161,792) CASH PROVIDED BY (USED FOR) FINANCING ACTIVITIES DEBT INCREASE (DECREASE) ($259,220) ($ 29,777) --------- --------- NET CASH PROVIDED BY (USED FOR) FINANCING ACTIVITIES ($235,888) ($ 29,776) INCREASE (DECREASE) IN CASH ($256,220) $206,235 BALANCE AT BEGINNING OF PERIOD $448,855 $495,744 BALANCE AT END OF PERIOD $192,317 $701,979
-5- 6 Pursuant to the requirements of Section 13 or 15(d) of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized. KNUSAGA CORPORATION By: /s/ Jerry Luptak ------------------- Vice President Dated: May 16, 2001 ---------------- Pursuant to the requirements of the Securities Exchange Act of 1934, this report has been signed by the following persons on behalf of the Registrant and in the capacities and on the date indicated: By: /s/ James G. Musser Date: May 16, 2001 -------------------------------- ---------------- Director/President (Principal Executive Officer and Controller) By: /s/ Jerry D. Luptak Date: May 16, 2001 -------------------------------- ---------------- Director Vice President, Finance and General Counsel (Principal Financial Officer) By: /s/ Harold Beznos Date: May 16, 2001 -------------------------------- ---------------- Director Secretary-Treasurer -----END PRIVACY-ENHANCED MESSAGE-----