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 20, 2005
(Date of earliest event reported)

KNAPE & VOGT MANUFACTURING COMPANY
(Exact Name of Registrant as Specified in Charter)

Michigan
(State or Other Jurisdiction
of Incorporation) 000-01859
(Commission
File Number)

38-0722920
(IRS Employer
Identification No.)

2700 Oak Industrial Drive, N.E.
Grand Rapids, Michigan
(Address of principal executive office) 49505
(Zip Code)

Registrant's telephone number, including area code: (616) 459-3311

(Former name or former address, if changed since last report)

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

[__] Written communications pursuant to Rule 425 under the Section Act (17 CFR 230.425).
[__] Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12).
[__] Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240-14d-2(b)).
[__] Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)).

Item 2.02     Results of Operations and Financial Condition

On October 20, 2005, Knape & Vogt Manufacturing Company issued a press release announcing results for the first quarter ended October 1, 2005. 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.

Item 9.01     Financial Statements and Exhibits

(c) Exhibits

99.1 Press Release dated October 20, 2005

 

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.

Date: October 20, 2005
        



Date: October 20, 2005
KNAPE & VOGT MANUFACTURING COMPANY
   (Registrant)



By: /s/ William R. Dutmers
      ——————————————
      Chairman and
      Chief Executive Officer

By: /s/ Leslie J. Cummings
      ——————————————
      Vice President of Finance and Treasurer

EXHIBIT INDEX

Exhibit 99.1     Press Release Dated October 20, 2005

EX-99

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, Eric Lubbers (616) 233-0500
Lambert, Edwards & Associates, Inc. (mail@lambert-edwards.com)

Knape & Vogt Reports Improved First Quarter Results

GRAND RAPIDS, Michigan, October 20, 2005 – Knape & Vogt Manufacturing Co. (Nasdaq: KNAP) today announced growth in sales and net income for the first quarter ended October 1, 2005.

The Grand Rapids, Mich.-based manufacturer and distributor of drawer slides, shelving, storage and ergonomic office products reported that net sales grew 6.3 percent to $40.8 million for the first quarter of fiscal 2006, compared with net sales of $38.4 million during the same period a year ago. Sales of new products and product enhancements were $8.3 million for the first quarter of fiscal 2006 compared with $8.0 million in the first quarter of the prior year.

KV reported first quarter net income of $1.2 million, or $0.26 per diluted share, increased significantly when compared with earnings of $390,511, or $0.09 per diluted share, during the same period in fiscal 2005. The net income improvement reflected efforts undertaken to address the impact of steel costs, along with the consolidation of the Company’s wire product manufacturing. In addition, the Company has been successful in leveraging its operating expenses.

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.

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

	Three Months Ended
	Oct. 1, 2005		Oct. 2, 2004
Net sales	$	40,806,683	$	38,372,180
Cost of sales		33,036,559		31,567,404
Gross profit		7,770,124		6,804,776
Selling, general and administrative expenses		5,525,144		5,835,251
Restructuring charge		44,477		-
Operating income		2,200,503		969,525
Interest and other expenses, net		323,217		307,158
Income before income taxes		1,877,286		662,367
Income taxes		720,157		271,856
Net income	$	1,157,129	$	390,511
Weighted average shares outstanding		4,510,505		4,516,681
Basic and diluted earnings per share	$	0.26	$	0.09
Cash dividend - common stock	$	0.165	$	0.165
Cash dividend - Class B common stock	$	0.15	$	0.15

Knape & Vogt Manufacturing Company and Subsidiaries
Condensed Consolidated Balance Sheets

	Oct. 1, 2005 (Unaudited)		July 2, 2005
Assets
Current Assets:
Cash and equivalents	$	8,294,306	$	6,349,702
Accounts receivable, net		20,794,494		19,944,781
Inventories		25,814,977		24,362,073
Assets held for sale		1,073,975		1,281,213
Prepaid expenses and other		878,293		934,711
Total current assets		56,856,045		52,872,480
Property, plant and equipment, net		21,686,272		22,120,924
Other assets		17,353,728		17,395,234
	$	95,896,045	$	92,388,638
Liabilities and Equity
Current liabilities	$	21,554,755	$	21,633,059
Long-term debt and capital leases		25,520,541		22,524,129
Deferred income taxes & other long-term liabilities		9,751,988		10,123,573
Stockholders' equity		39,068,761		38,107,877
	$	95,896,045	$	92,388,638

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

	Three Months Ended
	Oct. 1, 2005			Oct. 2, 2004
From Operating Activities:
Net income	$	1,157,129		$	390,511
Depreciation and amortization		1,244,423			1,515,294
Change in retirement plan cost		66,134			107,341
Deferred income taxes		(278,000	)		(141,894	)
Changes in operating assets & liabilities		(2,155,639	)		(1,920,677	)
Other, net		1,819			4,878
Net cash provided by (used for) operating activities		35,866			(44,547	)
From Investing Activities:
Additions to property, plant & equipment		(721,638	)		(716,514	)
Other, net		(17,667	)		(1,789	)
Net cash used for investing activities		(739,305	)		(718,303	)
From Financing Activities:
Cash dividends paid		(713,872	)		(712,661	)
Net change in long-term debt/capital leases		2,996,413			969,425
Net cash provided by financing activities		2,282,541			256,764
Effect of Exchange Rates on Cash		365,502			205,770
Net increase (decrease) in cash and equivalents	$	1,944,604		$	(300,316	)