-----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, IK8F1TrajMjSP9OAjMktZDBabhXmmrYG6ePIVm8IggQPV7JVYfZNnf3GtGMQtado Ky7Kqboj+nqNVkh6A0Hz9w== 0000056362-95-000012.txt : 19951107 0000056362-95-000012.hdr.sgml : 19951107 ACCESSION NUMBER: 0000056362-95-000012 CONFORMED SUBMISSION TYPE: 10-Q PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 19950930 FILED AS OF DATE: 19951106 SROS: NASD FILER: COMPANY DATA: COMPANY CONFORMED NAME: KNAPE & VOGT MANUFACTURING CO CENTRAL INDEX KEY: 0000056362 STANDARD INDUSTRIAL CLASSIFICATION: PARTITIONS, SHELVING, LOCKERS & OFFICE AND STORE FIXTURES [2540] IRS NUMBER: 380722920 STATE OF INCORPORATION: MI FISCAL YEAR END: 0630 FILING VALUES: FORM TYPE: 10-Q SEC ACT: 1934 Act SEC FILE NUMBER: 000-01859 FILM NUMBER: 95587552 BUSINESS ADDRESS: STREET 1: 2700 OAK INDUSTRIAL DR NE CITY: GRAND RAPIDS STATE: MI ZIP: 49505 BUSINESS PHONE: 6164593311 MAIL ADDRESS: STREET 1: 2700 OAK INDUSTRIAL DRIVE, NE CITY: GRAND RAPIDS STATE: MI ZIP: 49505 10-Q 1 UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q [X] QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the Quarterly Period Ended September 30, 1995 OR [ ] TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the Transition Period From ____________________To ____________________ Commission File Number 2-18868 KNAPE & VOGT MANUFACTURING COMPANY (Exact name of registrant as specified in its charter) Michigan 38-0722920 (State of Incorporation) (IRS Employer Identification No.) 2700 Oak Industrial Drive, NE Grand Rapids, Michigan 49505 (Address of principal executive offices) (Zip Code) (616) 459-3311 (Telephone Number) 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 12 months (or for 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 ______ 3,299,918 common shares were outstanding as of November 3, 1995. 2,581,151 Class B common shares were outstanding as of November 3, 1995. KNAPE & VOGT MANUFACTURING COMPANY AND SUBSIDIARIES INDEX Page No. PART I FINANCIAL INFORMATION Item 1. Financial Statements. Condensed Consolidated Balance Sheets - --September 30, 1995 (Unaudited) and June 30, 1995............................2 Condensed Consolidated Statements of Income (Unaudited) - --Three Months Ended September 30, 1995 and 1994..............................3 Condensed Consolidated Statements of Cash Flows (Unaudited) - --Three Months Ended September 30, 1995 and 1994..............................4 Notes to Condensed Consolidated Financial Statements..........................5 Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations.........................................6-7 PART II OTHER INFORMATION Item 6. Exhibits and Reports on Form 8-K......................................8 SIGNATURES ...................................................................8 KNAPE & VOGT MANUFACTURING COMPANY AND SUBSIDIARIES PART I. FINANCIAL INFORMATION CONDENSED CONSOLIDATED BALANCE SHEETS September 30, 1995 June 30, 1995 ------------------- --------------- (Unaudited) Assets Cash and equivalents $ 1,332,513 $ 604,106 Accounts receivable - net 28,305,857 27,045,057 Inventories 30,087,933 28,347,023 Other current asset 3,296,146 3,210,231 ---------------- ---------------- Total Current assets 63,022,449 59,206.417 ---------------- ---------------- Property, plant and equipment 86,766,575 85,729,838 Less accumulated depreciation 35,373,803 33,654,435 ---------------- ---------------- Net property, plant and equipment 51,392,772 52,075,403 ---------------- ---------------- Other assets 24,202,322 24,015,737 ---------------- ---------------- $ 138,617,543 $ 135.297,557 ================ ================ Liabilities and Stockholder Equity Accounts payable $ 6,986,105 $ 7,552,129 Accrued income and other taxes 1,120,561 1,337,920 Other accrued liabilities 3,982,190 4,519,615 ---------------- ---------------- Total current liabilities 12,088,856 13,409,664 Long-term debt 39,400,000 35,800,000 Deferred income taxes and other long-term liabilities 13,509,744 13,374,057 ---------------- ---------------- Total liabilities 64,998,600 62,583,721 ---------------- ---------------- Stockholders equity Common stock 11,762,138 11,759,828 Additional paid-in capital 33,080,087 33,065,773 Foreign currency translation adjustment (1,004,332) (1,316,765) Retained earnings 29,781,050 29,205,000 ---------------- ---------------- Total stockholders equity 73,618,943 72,713,836 ---------------- ---------------- $ 138,617,543 $ 135,297,557 ================ ================
See accompanying notes. KNAPE & VOGT MANUFACTURING COMPANY AND SUBSIDIARIES CONDENSED CONSOLIDATED STATEMENTS OF INCOME (Unaudited) Three Months Ended Sept. 30, 1995 Sept. 30, 1994 Net Sales $ 45,148,630 $ 48,057,048 Cost of sales 34,188,157 35,576,346 ---------------- ---------------- Gross profit 10,960,473 12,480,702 Selling and administrative expenses 7,847,738 7,841,443 ---------------- ---------------- Operating income 3,112,735 4,639,259 Other expenses 644,024 636,901 ---------------- ---------------- Income before income taxes 2,468,711 4,002,358 Income taxes 961,000 1,493,000 ---------------- ---------------- Net income $ 1,507,711 $ 2,509,358 ================ ================ Per common shares: Net Income $ .26 $ .43 Cash Dividend - Common Stock $ .165 $ .165 Cash Dividend - Class B Common Stock $ .15 $ .15 Weighted average shares outstanding 5,885,466 5,893,444 See accompanying notes. KNAPE & VOGT MANUFACTURING COMPANY AND SUBSIDIARIES CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) Three Months Three Months Ended Ended Sept. 30, 1995 Sept. 30, 1994 --------------- ---------------- Operating Activities: Net income $ 1,507,711 $ 2,509,358 Non-cash items: Depreciation and amortization 1,884,525 1,820,263 Deferred income taxes 238,000 230,000 Other long-term liabilities (103,495) (82,926) Changes in operating assets & liabilities: Accounts receivable and other receivables (1,144,020) (1,068,021) Inventories (1,586,114) 984,684 Other current assets (76,641) (65,323) Accounts payable & accrued expenses (1,427,487) (3,352,853) ----------------- ---------------- Net cash from (for) operating activities (707,521) 975,182 ----------------- ---------------- Investing Activities: Additions to property, plant, and equipment (815,333) (942,322) Sale of property, plant, and equipment 0 3,334 Payments for other assets (437,855) (141,623) ----------------- ---------------- Net cash for investing activities (1,253,188) (1,080,611) ----------------- ---------------- Financing Activities: Proceeds from sale of common stock 16,624 12,438 Purchase of common stock 0 (10,548) Additions to long-term debt 3,600,000 1,300,000 Payments on long-term debt 0 0 Cash dividends paid (931,661) (930,028) ----------------- ---------------- Net cash from financing activities 2,684,963 371,862 ----------------- ---------------- Effect of Exchange Rate Changes on Cash 4,153 39,873 ----------------- ---------------- Net Increase (Decrease) in Cash & Equivalents 728,407 306,306 Cash and Equivalents: Beginning of year 604,106 620,224 ----------------- ----------------- End of period $ 1,332,513 $ 926,530 ================= ================= Cash Paid During the Period - interest $ 603,355 $ 491,433 - income taxes $ 1,598,430 $ 1,261,740
KNAPE & VOGT MANUFACTURING COMPANY AND SUBSIDIARIES NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Unaudited) Note 1 - Basis of Financial Statement Preparation The accompanying unaudited condensed consolidated financial statements and related notes have been prepared pursuant to the rules and regulations of the Securities and Exchange Commission. The information furnished reflects all adjustments which are, in the opinion of management, necessary for a fair statement of results of operations. Interim results are not necessarily indicative of the results for the year end and are subject to year end adjustments, and audit by independent public accountants. The balance sheet at June 30, 1995, has been taken from the audited financial statements at that date. The condensed consolidated financial statements and notes should be read in conjunction with the Company's 1995 annual report. Note 2 - Common Stock and Per Share Information Income per share is determined based on weighted average number of shares outstanding during each period. Common stock is $2 par - shares authorized 6,000,000 of common stock and 4,000,000 of Class B common stock. Shares issued: 3,299,918 of common stock; 2,581,151 of Class B stock at September 30, 1995; and 3,295,496 of common stock and 2,584,418 of Class B common stock at June 30, 1995. Note 3 - Inventories Inventories are valued at the lower of FIFO (first-in, first-out) cost or market. The Company has one subsidiary on LIFO (last-in, first-out) cost. The Company has decided to change to FIFO cost for this subsidiary during fiscal year 1996. The inventory value at this subsidiary was $209,000 and $418,000 lower than it would have been under FIFO at September 30, 1995 and June 30, 1995 respectively. Inventories are summarized as follows: September 30, 1995 June 30, 1995 ------------------ ------------- Finished products $ 16,851,035 $ 16,187,481 Work in process 3,954,046 3,538,217 Raw Materials 9,282,852 8,621,325 ---------------- ---------------- Total $ 30,087,933 $ 28,347,023 ============== ============== KNAPE & VOGT MANUFACTURING COMPANY AND SUBSIDIARIES MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS RESULTS OF OPERATIONS Net Sales Net sales for the first quarter of fiscal year 1996 decreased $2.9 million, or 6.1%, over the comparable period of fiscal year 1995. Drawer slide sales decreased by $1.9 million. Continued growth in precision drawer slides was offset by the decline in sales of utility slides. Furniture component sales decreased $1.0 million compared to the first quarter of fiscal year 1995. In the first quarter of fiscal year 1995 the Company had not completed it's consolidation of the wood lamination operations at Modar and furniture component sales were filling this capacity. Store fixture and hardware product line sales decreased $0.5 million primarily due to a decline in store fixture sales to Roll-it's largest customer. Shelving sales increased by $0.5 million compared to the first quarter of fiscal year 1995 due to an increase in sales of free standing shelving. Costs and Expenses Cost of sales was 75.7% of sales for the quarter compared to 74.0% of sales for the first quarter of 1995. The higher cost of sales is due to increases in raw material prices that could not be passed along to our customers. Sales price decreases to obtain new business and maintain existing relationships also contributed to the reduction in margins compared to the first quarter of fiscal 1995. Selling and administrative expenses increased to 17.4% of sales compared to 16.3% for the period ended September 30, 1994. Expenses actually only increased by $6,295. Selling expense increased due to co-op advertising arrangements with customers but were offset by decreases in administrative expense related to Michigan taxes. Other Expenses Interest expense was $598,405 for the quarter compared to $579,948 for the quarter ended September 30, 1994. The Company has reduced its level of borrowing to $39,400,000 at September 30, 1995 from $41,300,000 at September 30, 1994 while interests rates were higher during the first quarter of fiscal 1996 compared to the same period in fiscal 1995. Income Taxes The effective tax rate for the quarter ended September 30, 1995 was 38.9% compared to 37.3% for the quarter ended September 30, 1994. Lower pretax income for the quarter ended September 30, 1995 increased the impact of permanent differences, such as amortization of goodwill, when computing the effective tax rate. Net Income Net income of $1,507,711 for the first quarter of 1996 was 3.3% of sales for the quarter compared to 5.2% of sales in the first quarter last year. Earnings per share decreased 39.5% to $.26 compared to $.44 in the first quarter of last year. KNAPE & VOGT MANUFACTURING COMPANY AND SUBSIDIARIES MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS (Continued) Liquidity and Capital Resources The Company's net cash position improved during the first three months to $1,332,513 from $604,106 at June 30, 1995. Net cash from operating activities was negatively effected by an increase in inventory balances as production could not be slowed in conjunction with sales. Introductions of Lumber Loc and Space Solution products also increased inventory levels. Accounts payable and accrued expenses decreased during the quarter which is common for the first quarter due to the timing of when payments are due. Accounts receivable also increased during the quarter particularly at our Hirsh subsidiary since September is one of the largest sales months. Capital expenditures totaled $815,333 for the three months ended September 30, 1995, compared to $942,322 last year. The debt increased $3,600,000 due to the cash used in operating activities during the quarter ended September 30, 1995. Debt levels are expected to decrease during the remainder of fiscal year 1996. The Company's working capital of $50,933,593 and current ratio of 5.2 to 1 at September 30, 1995, remains strong and increased from the $45,796,753 of working capital and 4.4 to 1 current ratio at June 30, 1995. KNAPE & VOGT MANUFACTURING COMPANY AND SUBSIDIARIES PART II. OTHER INFORMATION Item 6. Exhibits and reports on Form 8-K (a) Exhibits - none (b) Reports on Form 8-K There were no reports on Form 8-K filed for the three months ended September 30, 1995. SIGNATURES Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized. Knape & Vogt Manufacturing Company (Registrant) Date: November 6, 1995 s/Raymond E. Knape -------------------- Raymond E. Knape Chairman, President and Chief Executive Officer Date: November 6, 1995 s/Richard C. Simkins -------------------- Richard C. Simkins Vice President - Finance, Secretary, and Treasurer EX-27 2 ARTICLE 5 FDS FOR 1ST QUARTER 10-Q
5 US$ 3-MOS Jun-30-1996 Jul-01-1995 Sep-30-1995 1 1,332,513 0 28,985,857 680,000 30,087,933 63,022,449 86,766,575 35,373,803 138,617,543 12,088,856 39,400,000 11,762,138 0 0 61,856,805 138,617,543 45,148,630 45,148,630 34,188,157 34,188,157 7,847,738 0 598,405 2,468,711 961,000 1,507,711 0 0 0 1,507,711 0.26 0.26
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