-----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, FVmWHz3nMqy6roMH3Kn8Diu/kdm623AR00WhCq5t5xSRfFRCnb0s5BMTjQqyJh/L fqXoK1ft5qD+SMQZcqn5Bg== 0000926044-97-000057.txt : 19970505 0000926044-97-000057.hdr.sgml : 19970505 ACCESSION NUMBER: 0000926044-97-000057 CONFORMED SUBMISSION TYPE: 10-Q/A PUBLIC DOCUMENT COUNT: 1 CONFORMED PERIOD OF REPORT: 19960331 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: 97594443 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 March 31, 1996 [ ] 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 [ ] 3,314,269 common shares were outstanding as of May 3, 1996. 2,566,800 Class B common shares were outstanding as of May 3, 1996. 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 nine month and three month periods ended March 31, 1996 and 1995: Nine months ended March 31, Three months ended March 31, ------------------------------------------ ---------------------------------------- 1996 1995 1996 1995 - ------------------------------------------------------------------------------------------------------------------- Shelving systems $ 61.6 45.9% $ 61.9 44.9% $ 21.9 45.1% $ 22.5 46.7% Drawer slides 38.4 28.6% 39.8 28.8% 15.2 31.3% 14.5 30.1% Hardware 20.4 15.2% 22.0 15.9% 6.9 14.2% 7.4 15.4% Store fixtures 11.3 8.4% 10.0 7.3% 3.8 7.8% 2.9 6.0% Furniture components 2.4 1.8% 4.3 3.1% 0.8 1.6% 0.9 1.9% - -------------------------------------------------------------------------------------------------------------------- Total $134.1 100.0% $138.0 100.0% $ 48.6 100.0% $ 48.2 100.0% ====================================================================================================================
Net sales for the third quarter of fiscal year 1996 increased .7% to $48.6 million compared to $48.2 million for the same quarter last year. This is the first quarter in fiscal year 1996 that showed an increase in sales over the prior year. For the nine months ended March 31, 1996 sales were $134.1 million, a decrease of 2.8% compared to $138.0 million for the same period in fiscal year 1995. Drawer slide sales increased to $15.2 million for the quarter from $14.5 million last year due to increases in sales of precision drawer slides. Store fixture sales increased during the quarter by $.9 million compared to the same quarter last year due to demand from Roll-it's largest customer who had dedicated more funds to refixturing stores than in past years' comparable periods. Hardware product line sales decreased $.5 million for the quarter due to decreased sales of work systems. Shelving sales decreased to $21.9 million during the quarter compared to $22.5 million last year, due primarily to decreased sales of wall mounted shelving products. Furniture component sales decreased slightly during the quarter to $.8 million compared to $.9 million last year. Based on internal forecasts, the Company anticipates that sales in the fourth quarter may show a slight decrease compared to the same period in fiscal 1995 when store fixture sales were very strong. Costs and Expenses Cost of sales was 75.5% of sales for the third quarter and 76.0% of sales for the first nine months of fiscal year 1996 compared to 75.5% and 75.0% of sales for the third quarter and first nine months of fiscal year 1995, respectively. Price decreases in steel and particle board prices accounted for most of the improvement in cost as a percentage of sales for the quarter compared to the costs for the nine months. The increase in the cost of sales for the nine months ended March 31, 1996 compared to last year is mainly due to material price increases throughout the last six months of fiscal year 1995 and the first six months of fiscal year 1996. Selling and administrative expenses for the quarter increased as a percentage of sales to 16.5% from 16.3% last year primarily due to selling expenses associated with the start-up of the retail program at Feeny. Selling and administrative expense for the nine months decreased by $217,167 mainly due to lower administrative expenses, but increased to as a percentage of sales to 17.0% compared to 16.7% last year due to the lower sales levels in fiscal year 1996. Other Expenses Interest expense decreased to $554,595 for the quarter ended March 31, 1996 compared to $646,043 for the quarter ended March 31, 1995 due to lower interest rates. Interest expense for the nine months ended March 31, 1996 was $1,747,740 compared to $1,827,826 last year. Income Taxes The effective tax rate for the quarter and nine months ended March 31, 1996, was 36.5% and 37.6% compared to 36.7% and 36.4% for the quarter and nine months ended March 31, 1995. The effective tax rate for the nine months of fiscal year 1995 is slightly lower due to a reduction in Illinois state taxes relating to the Hirsh Company in the second quarter. Net Income Net income of $2,098,837 for the third quarter was 2.2% higher than the $2,052,830 reported a year ago. For the nine months ended March 31, 1996 net income was $4,666,295 which is 22.8% lower than the $6,042,801 reported for the same period last year. Earnings per share for the quarter and nine months were $.35 and $.79, respectively, compared to $.35 and $1.03 for the same periods last year. Net income was 4.3% and 3.5% of sales for the quarter and nine months, respectively, compared to 4.3% and 4.4% of sales for the same periods last year. Third quarter operations of the Company's store fixture manufacturing division resulted in an operating profit and net income of $80,000 and $58,000, respectively, compared to breakeven results for the same period last year. The increase in net income was mainly due to increased sales to the division's major customer. Compared to the second quarter of fiscal year 1996, store fixture profit for the third quarter improved due to substantially increased sales along with the discontinuance of the sale price discounting in effect during the second quarter. Liquidity and Capital Resources The Company's net cash position increased during the first nine months to $1,010,791 from $604,106 at June 30, 1995. Net cash from operating activities for the nine months ended March 31, 1996 was $1,764,078 better than the same period last year due to the decreases in the accounts payable and accruals in fiscal year 1995 that did not occur in fiscal year 1996 due to keeping these balances low at June 30, 1995. Capital expenditures were $5,756,953 for the nine months ended March 31, 1996. The Company is currently forecasting capital expenditures to be approximately $8 million for the fiscal year with the largest expenditures for drawer slide production equipment and sawing and edgebanding equipment. The Company had total debt of $36,700,000 at March 31, 1996, an increase of $900,000 from the balance at June 30, 1995 of $35,800,000 due to the high level of capital expenditures this fiscal year. 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 & Voft Manufacutirng Company (Registrant) Date: May 1, 1997 /s/ Richard C. Simkins Richard C. Simkins Executive Vice President, Chief Financial Officer, Secretary and Treasurer -----END PRIVACY-ENHANCED MESSAGE-----