-----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, QAJ/Sb8LEOaVTtucOWP39if/h2oDkF751HQE5pXPP+6IysK3iSBCK+3tqcPRvnZt vTEmXOQhj6J6cbpN/6ILOQ== 0000950124-99-001357.txt : 19990223 0000950124-99-001357.hdr.sgml : 19990223 ACCESSION NUMBER: 0000950124-99-001357 CONFORMED SUBMISSION TYPE: 10QSB PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 19981130 FILED AS OF DATE: 19990222 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: 99547107 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, 1998 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 17.6% in the first quarter of the fiscal year ending August 1999 to $2,462,657. Tubing sales decreased 48% to $1,541,310 from $2,988,804 in the year ago quarter. This is a result of a substantial decline of Ford Medium Truck production in their Mexican plant and Freightliner's production not yet reaching planned volumes. The seat track business provided new sales of $921,347 during the quarter. There were no seat track sales in the year ago quarter. The 48% decline in tubing sales resulted in a loss of $50,662 for the tubing business during the quarter compared to a profit of $327,462 in the year ago quarter. This was offset by a profit of $89,108 for the seat track business. Selling and Administrative expenses of $216,059 decreased 9.3% from the year ago quarter expense of $238,204 due to expense reduction in the tube business offset by a modest increase for the seat track business. LIQUIDITY AND SOURCES OF CAPITAL The company experienced a negative cash flow of $27,196 from operations during the quarter. There was an additional cash requirement of $107,470 for equipment purchases. This requirement was funded by cash available at the beginning of the quarter and a small increase in short term borrowings of $9,863. Long term debt was reduced by $94,043 during the quarter. 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, 1998
ASSETS November 30, 1998 CASH $ 147,579 ACCOUNTS RECEIVABLE $1,505,394 ACCOUNTS RECEIVABLE - OTHER $ 94,143 INVENTORIES $ 516,926 PREPAID EXPENSE $ 251,582 ---------- TOTAL CURRENT ASSETS $2,515,624 NET PROPERTY, PLANT AND EQUIPMENT $2,437,516 OTHER ASSETS $ 20,713 ---------- TOTAL ASSETS $4,973,853 LIABILITIES ACCOUNTS PAYABLE $1,060,260 NOTES PAYABLE $1,036,505 ACCRUED LIABILITIES $ 175,649 ---------- TOTAL CURRENT LIABILITIES $2,272,414 LONG TERM DEBT $1,401,861 ---------- TOTAL LIABILITIES $3,674,275 STOCKHOLDERS EQUITY (DEFICIENCY) Common Stock, par value $.01 per share authorized $ 70,000 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 $ 366,365 RETAINED EARNINGS $ 688,213 ---------- TOTAL STOCKHOLDERS EQUITY $1,299,578 ---------- TOTAL LIABILITIES AND STOCKHOLDERS EQUITY $4,973,853
-3- 4 KNUSAGA CORPORATION STATEMENT OF INCOME (UNAUDITED) THREE MONTHS ENDED NOVEMBER 30, 1998 AND NOVEMBER 30, 1997
(UNAUDITED) THREE MONTHS ENDED NOVEMBER 30, 1998 NOVEMBER 30, 1997 NET SALES $ 2,462,657 $2,988,804 COST OF GOODS SOLD $ 2,136,670 $2,208,638 ----------- ---------- GROSS PROFIT $ 325,987 $ 780,166 SELLING, GENERAL AND ADMINISTRATIVE EXPENSES $ 216,059 $ 238,204 MISC. INCOME (EXPENSE) ($ 44,485) $ 44,306 ----------- ---------- INCOME (LOSS) BEFORE TAXES $ 65,443 $ 497,657 PROVISION FOR FEDERAL INCOME TAXES $ 26,997 $ 170,195 ----------- ---------- NET INCOME BEFORE EXTRAORDINARY ITEMS $ 38,446 $ 327,462 EXTRAORDINARY ITEMS: $ -0- $ -0- TAX BENEFIT OF OPERATING LOSS CARRYFORWARD ----------- ----------- NET INCOME $ 38,446 $ 327,462 PAR SHARE OF COMMON STOCK AND COMMON STOCK EQUIVALENTS: AVERAGE OUTSTANDING SHARES 7,000,000 7,000,000 .00 .04
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, 1998 AND NOVEMBER 30, 1997
(UNAUDITED) THREE MONTHS ENDED NOVEMBER 30, 1998 NOVEMBER 30, 1997 CASH PROVIDED BY (USED FOR) OPERATIONS NET INCOME (LOSS) BEFORE EXTRAORDINARY ITEMS, NON-CASH $ 38,446 $ 327,462 EXPENSE INCLUDED IN NET INCOME DEPRECIATION $ 82,686 $ 71,250 (INCREASE) DECREASE IN: ACCOUNTS RECEIVABLE ($475,725) $ 70,915 INVENTORIES $ 51,785 $ 100,109 PREPAID EXPENSES ($ 4,472) $ 8,759 OTHER ASSETS --- ($62,100) INCREASE (DECREASE) IN: ACCOUNTS PAYABLE $ 267,179 ($84,588) ACCRUED LIABILITIES $ 12,905 $ 21,197 --------- --------- NET CASH PROVIDED BY (USED FOR) ($27,196) $ 453,004 OPERATING ACTIVITIES CASH PROVIDED BY (USED FOR) INVESTING ACTIVITIES PURCHASES OF EQUIPMENT $ 107,470 ($69,706) --------- CASH PROVIDED BY (USED FOR) BEFORE ($134,666) $ 383,298 FINANCING ACTIVITIES CASH PROVIDED BY (USED FOR) FINANCING ACTIVITIES DEBT INCREASE (DECREASE) SHORT-TERM $ 9,863 ($580,000) LONG-TERM ($94,043) ($63,358) --------- --------- NET CASH PROVIDED BY (USED FOR) ($84,180) ($643,358) FINANCING ACTIVITIES INCREASE (DECREASE) IN CASH ($218,840) ($260,060) BALANCE AT BEGINNING OF PERIOD $ 364,781 $ 276,294 BALANCE AT END OF PERIOD $ 145,935 $ 16,234
-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/ Jim Musser --------------------------- Jim Musser Dated: 2/22/99 ------------------------ -6- 7 INDEX TO EXHIBITS EXHIBIT NO. DESCRIPTION - ------- --- ----------- 27 Financial Data Schedule -7- EX-27 2 FINANCIAL DATA SCHEDULE
5 3-MOS AUG-31-1999 SEP-01-1998 NOV-30-1998 147,579 0 1,599,537 0 516,926 2,515,624 3,783,979 1,346,463 4,973,853 2,272,414 830,060 0 175,000 70,000 1,054,578 4,973,853 2,462,657 2,462,657 2,136,670 2,352,729 (532) 0 45,016 65,443 26,997 38,446 0 0 0 38,446 .00 .00
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