-----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, U0irnk8u2zbfqfjX/EFowDqZNSXl7ieVDFzk8kVYK1LFNzz0WOHXeuFA5Rahfd0d msEgGOsCqSXO9GhqyPjqMA== 0000950124-02-000189.txt : 20020414 0000950124-02-000189.hdr.sgml : 20020414 ACCESSION NUMBER: 0000950124-02-000189 CONFORMED SUBMISSION TYPE: 10QSB PUBLIC DOCUMENT COUNT: 1 CONFORMED PERIOD OF REPORT: 20011130 FILED AS OF DATE: 20020201 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: 1934 Act SEC FILE NUMBER: 000-07795 FILM NUMBER: 02524662 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 k67204e10qsb.txt FORM 10-QSB 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, 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- RESULTS OF OPERATIONS Net sales decreased 7.8% in the first quarter of the fiscal year ending August 2002 to $2,330,072 from $2,529,139 a year ago. This is a result of continued decline in the heavy truck market which was partially offset by improvement in the recreational vehicle market. There did not appear to be any decline in the registrant's market share in either of these markets The registrant operated at a $45,137 profit in the first quarter of the 2002 fiscal year versus a loss of $136,678 in the first quarter a year ago. This is a result of expense reductions versus the year ago quarter. Cost of sales dropped from 87.3% in the first quarter of fiscal 2001 to 82.5% in the first quarter of fiscal 2002. Selling, general and administrative expenses decreased 31.5% to $289,810 in the first quarter of fiscal 2002 versus $423,338 in the year ago quarter. 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. The tubing business services the heavy truck market and the seat track business services the recreational vehicle market. Below is summarized segmental data for the three months ended November 30, 2001 and 2000.
- ------------------------ --------------------------------- ----------------------------------- ----------------------------------- TUBING SEAT TRACK TOTAL - ------------------------ --------------------------------- ----------------------------------- ----------------------------------- Fiscal 2002 Fiscal 2001 Fiscal 2002 Fiscal 2001 Fiscal 2002 Fiscal 2001 - ------------------------ --------------- ----------------- ----------------- ----------------- ----------------- ----------------- External Revenue 1,505,852 1,785,058 824,220 744,081 2,330,072 2,529,139 - ------------------------ --------------- ----------------- ----------------- ----------------- ----------------- ----------------- Intersegment Revenue 0 0 0 0 0 0 - ------------------------ --------------- ----------------- ----------------- ----------------- ----------------- ----------------- Profit (loss) (63,974) (173,464) 109,111 36,786 45,137 (136,678) - ------------------------ --------------- ----------------- ----------------- ----------------- ----------------- -----------------
LIQUIDITY AND SOURCES OF CAPITAL Operations during the quarter produced $156,333 of cash, equipment purchases consumed $7,061 and there was a reduction in bank debt of $157,694 resulting in negative cash flow of $10,302 for the quarter. The maturity date of registrant's line of credit has been extended until March 1, 2002. CONTINGENT MATTERS There are no contingencies or consequential uncertainties known that will materially affect the financial information as presented. -2- KNUSAGA CORPORATION BALANCE SHEET (UNAUDITED) NOVEMBER 30, 2001
ASSETS November 30, 2001 CASH $ 52,451 ACCOUNTS RECEIVABLE $ 1,411,529 ACCOUNTS RECEIVABLE -- OTHER $ 5,920 INVENTORIES $ 1,037,477 REFUNDABLE TAXES $ 164,848 PREPAID EXPENSES $ 47,584 ----------- TOTAL CURRENT ASSETS $ 2,719,809 NET PROPERTY, PLANT AND EQUIPMENT $ 1,980,271 OTHER ASSETS DEPOSITS $ 7,050 INVESTMENT IN JOINT VENTURES $ 115,293 GOODWILL, NET OF AMORTIZATION $ 6,151 ----------- TOTAL OTHER ASSETS $ 128,494 ----------- TOTAL ASSETS $ 4,828,574 =========== LIABILITIES ACCOUNTS PAYABLE $ 523,337 NOTES PAYABLE $ 1,555,408 ACCRUED LIABILITIES $ 960,773 ----------- TOTAL CURRENT LIABILITIES $ 3,039,518 LONG TERM DEBT $ 653,601 DEFERRED TAXES $ 36,500 ----------- TOTAL LIABILITIES $ 3,729,619 SHAREHOLDER'S EQUITY STOCK $ 70,007 PREFERRED STOCK $ 175,000 ADDITIONAL PAID IN CAPITAL $ 366,365 RETAINED EARNINGS $ 594,933 NOTE RECEIVABLE SHAREHOLDER ($ 107,343) ----------- TOTAL SHAREHOLDERS' EQUITY $ 1,098,955 ----------- TOTAL LIABILITIES & SHAREHOLDERS' EQUITY $ 4,828,574 ===========
-3- KNUSAGA CORPORATION STATEMENT OF INCOME (UNAUDITED) THREE MONTHS ENDED NOVEMBER 30, 2001 AND NOVEMBER 30, 2000
(UNAUDITED) THREE MONTHS ENDED NOVEMBER 30, 2001 NOVEMBER 30, 2000 NET SALES $2,330,072 $2,529,139 COST OF GOODS SOLD $1,921,752 $2,208,777 ---------- ---------- GROSS PROFIT $ 408,320 $ 320,361 SELLING, GENERAL AND ADMINISTRATIVE EXPENSES $ 289,810 $ 423,338 MISC. INCOME (EXPENSE) ($ 36,555) ($ 55,307) ---------- ---------- INCOME (LOSS) BEFORE TAXES $ 81,955 ($ 158,284) PROVISION FOR FEDERAL INCOME TAXES $ 36,818 ($ 21,606) ---------- ---------- NET INCOME BEFORE EXTRAORDINARY ITEMS $ 45,137 ($ 136,678) EXTRAORDINARY ITEMS: $-0- $ -0- TAX BENEFIT OF OPERATING LOSS CARRYFORWARD ---------- ---------- NET INCOME $ 45,137 ($ 136,678) PAR SHARE OF COMMON STOCK AND COMMON STOCK EQUIVALENTS: AVERAGE OUTSTANDING SHARES 7,000,000 7,000,000 .01 .00
THE FINANCIAL STATEMENTS INCLUDED IN THIS REPORT REFLECT ALL ADJUSTMENTS, WHICH, IN THE OPINION OF MANAGEMENT, ARE NECESSARY FOR FAIR PRESENTATION. The financial statements should be read in conjunction with the footnotes which are a part of registrant's audited financial statements contained in registrant's most recently filed Annual Report on Form 10KSB. -4- KNUSAGA CORPORATION STATEMENT OF CASH FLOW (UNAUDITED) THREE MONTHS ENDED NOVEMBER 30, 2001 AND NOVEMBER 30, 2000
(UNAUDITED) THREE MONTHS ENDED NOVEMBER 30, 2001 NOVEMBER 30, 2000 CASH PROVIDED BY (USED FOR) OPERATIONS NET INCOME (LOSS) BEFORE EXTRAORDINARY ITEMS, $ 45,137 ($136,678) EXCHANGE LOSS NON-CASH EXPENSE INCLUDED IN NET INCOME $ 67,154 $ 89,440 DEPRECIATION (INCREASE) DECREASE IN: ACCOUNTS RECEIVABLE $124,497 ($ 23,981) INVENTORIES ($ 26,944) ($ 59,171) REFUNDABLE TAXES $ 40,718 $ 0 PREPAID EXPENSES ($ 2,984) $ 7,260 OTHER ASSETS $ 3,529 $ 501 INCREASE (DECREASE) IN: ACCOUNTS PAYABLE ($192,375) $113,119 ACCRUED LIABILITIES $ 97,601 ($ 46,005) -------- -------- NET CASH PROVIDED BY (USED FOR) $156,333 ($ 55,515) -------- OPERATING ACTIVITIES INVESTING ACTIVITIES PURCHASES OF EQUIPMENT $ 7,061 ($ 5,650) INVESTMENT IN JOINT VENTURES ($ 16,002) --------- CASH PROVIDED BY (USED FOR) INVESTING ACTIVITIES ($ 8,941) --------- FINANCING ACTIVITIES PAYMENT OF NOTES ($157,694) --------- CASH USED FOR FINANCING ACTIVITIES ($157,694) --------- NET INCREASE (DECREASE) ($ 10,302) SHORT-TERM 14,122 LONG-TERM ($105,792) -------- NET CASH PROVIDED BY (USED FOR) FINANCING ACTIVITIES ($ 91,670) INCREASE (DECREASE) IN CASH ($152,835) BALANCE AT BEGINNING OF PERIOD $ 62,753 $448,913 BALANCE AT END OF PERIOD $ 52,451 $296,078 ========
-5- 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: James Musser ---------------------------------- President (Duly Authorized and Principal Accounting Officer) Dated: January 31, 2002 ---------------------------------- -6- -----END PRIVACY-ENHANCED MESSAGE-----