8-K 1 kv8k_102303.htm KNAPE & VOGT MANUFACTURING COMPANY FORM 8-K

UNITED STATES
SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 8-K

CURRENT REPORT
PURSUANT TO SECTION 13 OR 15(d)
OF THE SECURITIES EXCHANGE ACT OF 1934

Date of Report: October 23, 2003


KNAPE & VOGT MANUFACTURING COMPANY
(Exact name of registrant as specified in its charter)


Commission File Number 000-01859


Michigan
(State of Incorporation)		   38-0722920
(IRS Employer Identification No.)

2700 Oak Industrial Drive, NE
Grand Rapids, Michigan
(Address of principal executive offices)		   49505
(Zip Code)

(616) 459-3311
(Telephone Number)







Item 7.   FINANCIAL STATEMENTS, PRO FORMA FINANCIAL INFORMATION, AND EXHIBITS

(c) Exhibits

99.1      Press Release dated October 16, 2003

Item 12.   RESULTS OF OPERATIONS AND FINANCIAL CONDITION

On October 16, 2003, Knape & Vogt Manufacturing Company issued a press release announcing results for the first quarter ended September 27, 2003. A copy of the press release is attached as Exhibit 99.1 to this Form 8-K.

The information in this Form 8-K and the attached Exhibit shall not be deemed filed for purposes of Section 18 of the Securities Exchange Act of 1934, nor shall it be deemed incorporated by reference in any filing under the Securities Act of 1933, except as shall be expressly set forth by specific reference in such filing.








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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: October 23, 2003
  /s/ William R. Dutmers
William R. Dutmers
Chairman and
Chief Executive Officer

 
Date: October 23, 2003
  /s/ Leslie J. Cummings
Leslie J. Cummings
Vice President of Finance and
Treasurer







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Exhibit 99.1

FOR IMMEDIATE RELEASE

CONTACT: Leslie Cummings, Vice President of Finance and Treasurer
Knape & Vogt Manufacturing Company (616) 459-3311, Ext. 225
or
Jeff Lambert, Paula MacKenzie (616) 233-0500
Lambert, Edwards & Associates, Inc. (mail@lambert-edwards.com)

Knape & Vogt Reports Improved First-Quarter Results

GRAND RAPIDS, Michigan, October 16, 2003 – Bolstered by strong sales of new products, Knape & Vogt Manufacturing Co. (Nasdaq: KNAP) today announced higher net sales and net income for its first quarter ended September 27, 2003.

The Grand Rapids, Mich.-based manufacturer and distributor of drawer slides, shelving, storage and ergonomic office products reported that net sales increased 16.5 percent to $36.1 million for the first quarter of fiscal 2004, compared with net sales of $31.0 million during the same period a year ago. KV reported that net income increased to $669,875, or $0.15 per share, for the just-completed quarter, from $194,963, or $0.04 per share, during the same period in fiscal 2003.

The Company attributed the strong sales gains to new products introduced during the past year, which accounted for $5.5 million of sales in the quarter.  New products from KV’s Home and Commercial Products and Office Products divisions – including the Shelf Made™ Instant Shelf, a line of decorative display ledges, the 4x4™ precision slides and the heavy duty 8800™ slide with patented interlock feature– allowed KV to increase sales to existing customers and add new customers. 

“During the first quarter, we saw growth in almost all of the markets we serve, including the office furniture segment where we are outpacing the industry,” said Bill Dutmers, chairman and CEO. “While the office furniture industry reported a slight decline in shipments for the months of July and August, we were successful in growing our sales to both the original equipment manufacturer channel and the dealer channel. New products, including those designed for specific customer needs such as the various 8400 precision slide applications, allowed us to grow sales and gain market share.”

“We intend to build on our recent success by accelerating our product development initiatives in the coming year,” Dutmers continued. “New products, increased customer service and the expansion of our sales force will be key elements in our drive to win additional market share.

“We continue to challenge ourselves to bring innovative products and services to our customers. In fact, we have expanded our ability to provide vendor managed inventory services to more of our customers in several of the markets that we serve. We firmly believe that our focus on value-added products and services is the reason for our current growth and will position KV for the future.”

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Knape & Vogt, page 2 of 2


About Knape & Vogt
Knape & Vogt Manufacturing Co. brings more than a century of experience to the design, manufacture and distribution of kitchen and bath storage solutions and office products for original equipment manufacturers, specialty distributors, office furniture dealers, hardware chains and major home centers throughout the country. Additional information on KV’s product lines is available on www.knapeandvogt.com.

Cautionary Statement: This press release contains certain forward-looking statements that involve risks and uncertainties. When used in this release, the words “believe,” “anticipates,” “think,” “intend,” “optimistic,” “forecast,” “expect” and similar expressions identify forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements include, but are not limited to, statements concerning future improvements in net sales, margins and profitability. Such statements are subject to certain risks and uncertainties which could cause actual results to differ materially from those expressed or implied by such forward-looking statements, including, but not limited to, economic, competitive, governmental and technological factors affecting the Company’s operations, markets, products, services and prices. Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date of this press release.

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Knape & Vogt Manufacturing Company and Subsidiaries
Condensed Consolidated Statements of Income
(Unaudited)

  Three Months Ended
  Sept. 27 2003   Sept. 28, 2002  
 
 
 
 
Net sales   $36,125,237   $30,998,184  
 
Cost of sales  28,960,702   23,944,254  
 
 
 
 
Gross margin  7,164,535   7,053,930  
 
Selling and administrative expenses  5,900,448   6,150,441  
 
Other  --   271,325  
 
 
 
 
Operating income  1,264,087   632,164  
 
Interest and other expenses, net  392,929   319,046  
 
 
 
 
Income before income taxes  871,158   313,118  
 
Income taxes  201,283   118,155  
 
 
 
 
Net income  $     669,875   $     194,963  
 
 
 
 
Earnings per common share - basic and diluted: 
 
  Weighted average shares outstanding  4,515,925   4,517,458  
 
 
 
 
Net income per share  $            .15   $            .04  
 
 
 
 
Cash dividend - Common stock  $          .165   $          .165  
 
 
 
 
Cash dividend - Class B common stock  $            .15   $            .15  
 
 
 
 






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Knape & Vogt Manufacturing Company and Subsidiaries
Condensed Consolidated Balance Sheets
(Unaudited)

  Sept. 27, 2003   Sept. 28, 2002  
 
 
 
Assets      
 
Current Assets:
Cash		   $  3,813,471   $  6,029,634  
Accounts receivable, net  20,389,533   15,218,213  
Inventories  18,329,561   14,058,718  
Prepaid expenses  584,212   1,620,564  
 
 
 
Total current assets  43,116,777   36,927,129  
 
Property, plant and equipment, net  32,535,673   35,973,726  
 
Other assets  17,515,442   13,423,221  
 
 
 
   93,167,892   86,324,076  
 
 
 
Liabilities and Equity 
 
Current liabilities  19,646,798   19,021,791  
 
Long-term debt and capital leases  25,235,525   20,000,000  
 
Deferred income taxes & other long-term liabilities  13,332,358   12,250,356  
 
Stockholders' equity  34,953,211   35,051,929  
 
 
 
   $93,167,892   $86,324,076  
 
 
 

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Knape & Vogt Manufacturing Company and Subsidiaries
Condensed Consolidated Statements of Cash Flows
(Unaudited)

  Three Months Ended
  Sept. 27, 2003   Sept. 28, 2002  
 
 
 
From Operating Activities:      
         Net income  $    669,875   $    194,963  
         Depreciation and amortization  1,630,766   1,751,461  
         Decrease in prepaid pension expense  85,825   46,367  
         Increase (decrease) in deferred taxes  354,373   (60,000 )
         Severance accrual  --   271,325  
         Loss on disposal of fixed assets  26,661   56,569  
         Changes in operating assets & liabilities  (2,792,436 ) (103,847 )
         Other, net  (21,025 ) 45,761  
 
 
 
Net cash provided by (used for) operating activities  (45,961 ) 2,202,599  
 
From Investing Activities: 
         Additions to property, plant & equipment net  (440,487 ) (1,014,967 )
         Proceeds from sales of property, plant & equipment  800   215,527  
         Other, net  (17,765 ) --  
 
 
 
Net cash used for investing activities  (457,452 ) (799,440 )
 
From Financing Activities: 
         Cash dividends paid  (712,174 ) (711,846 )
         Net change in long-term debt/capital leases  1,185,920   --  
 
 
 
 
Net cash provided by (used for) financing activities  473,746   (711,846 )
 
Effect of Exchange Rates on Cash  (3,473 ) (92,222 )
 
 
 
Net increase (decrease) in cash & equivalents  $   (33,140 ) $    599,091  
 
 
 

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