-----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, N2HWhshx+vohBS9xVmFpV67hmcmnSvQel7vpAwNX34fL+km3TMvtc9gJG6eZV04E 8hr6FewkWx4LnRd5UI5jXw== 0000926044-97-000055.txt : 19970505 0000926044-97-000055.hdr.sgml : 19970505 ACCESSION NUMBER: 0000926044-97-000055 CONFORMED SUBMISSION TYPE: 10-Q/A PUBLIC DOCUMENT COUNT: 1 CONFORMED PERIOD OF REPORT: 19950930 FILED AS OF DATE: 19970502 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/A SEC ACT: 1934 Act SEC FILE NUMBER: 000-01859 FILM NUMBER: 97594441 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/A 1 UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q/A [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 MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS RESULTS OF OPERATIONS Net Sales The following table indicates the Company's sales (in millions) and percentage of total sales by product category for the three month periods ended September 30, 1995 and 1994: Three months ended September 30, --------------------------------------------------------- 1995 1994 -------------------------- -------------------------- Shelving systems $ 21.4 47.6% $ 20.9 43.5% Drawer slides 11.3 25.1% 13.2 27.4% Hardware 6.3 14.0% 7.0 14.6% Store fixtures 5.3 11.8% 5.1 10.6% Furniture components 0.8 1.8% 1.9 4.0% - --------------------------------------------------------------------------------------- Total $ 45.1 100.0% $ 48.1 100.0% =======================================================================================
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 slides was more than 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 its consolidation of the wood lamination operations at Modar and furniture component sales were filling this capacity. Hardware product line sales decreased by $.7 million due to decreased sales of work systems which include sawhorses, toolstands, workbenches and workstations. Shelving sales increased by $.5 million compared to the first quarter of fiscal year 1995 due to an increase in sales of free standing shelving. Store fixture sales increased only $.2 million compared to the first quarter of fiscal year 1994 due to lower than expected orders from Roll-it's largest customer. 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. 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 interest 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. 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. SIGNATURES Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this amended report to be signed on its behalf by the undersigned thereunto duly authorized. Knape & Vogt Manufacturing Company (Registrant) Date: May 1, 1997 /s/ Richard C. Simkins Richard C. Simkins Executive Vice President - CFO, Secretary, and Treasurer -----END PRIVACY-ENHANCED MESSAGE-----