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: January 19, 2006
(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

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 January 19, 2006, Knape & Vogt Manufacturing Company issued a press release announcing results for the second quarter and six months ended December 31, 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 January 19, 2006

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: January 19, 2006





Date: January 19, 2006
KNAPE & VOGT MANUFACTURING COMPANY
(Registrant)



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

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

EXHIBIT INDEX

Exhibit 99.1 Press Release Dated January 19, 2006

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 Second Quarter and Six Month Results

GRAND RAPIDS, Michigan, January 19, 2006 – Knape & Vogt Manufacturing Co. (Nasdaq: KNAP) today announced the results for its second quarter and the six-month period ended December 31, 2005.

The Grand Rapids, Mich.-based manufacturer and distributor of drawer slides, shelving, storage and ergonomic office products reported that net sales grew 9.0 percent to $40.9 million for the second quarter of fiscal 2006, compared with net sales of $37.5 million during the same period a year ago. Sales of new products and product enhancements were $8.1 million for the second quarter of fiscal 2006 compared with $7.3 million in the second quarter of the prior year.

Net sales for the six months ended December 31, 2005, grew to $81.7 million from $75.9 million for the same period in the prior year, representing a 7.7 percent increase.

KV reported second quarter net income of $2.5 million, or $0.56 per basic and diluted share, which included a one-time settlement gain on one of the Company’s defined benefit plans of approximately $952,000 after-tax. This compared to a second quarter fiscal 2005 net loss of $522,815, or $0.12 per basic and diluted share, which included an impairment/restructuring charge of approximately $1.3 million after-tax related to the relocation of the Company’s wire production to Grand Rapids. Excluding these unusual items, the improvement in net income reflected savings from the consolidation of the Company’s wire production, leveraged operating costs due to higher sales volumes and lower steel costs.

Net income for the six months ended December 31, 2005, was $3.7 million, or $0.81 per basic and diluted share, compared with a net loss of $132,304, or $0.03 per basic and diluted share for the same period in the prior year.

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)

	Six Months Ended					Three Months Ended
	Dec. 31, 2005		Jan. 1, 2005			Dec. 31, 2005		Jan. 1, 2005
Net sales	$	81,676,019	$	75,868,426		$	40,869,336	$	37,496,247
Cost of sales		64,587,725		62,104,569			31,551,166		30,537,166
Gross margin		17,088,294		13,763,857			9,318,170		6,959,081
Selling and administrative expenses		10,768,001		11,367,449			5,242,857		5,532,198
Restructuring and impairment expenses		44,477		1,778,447			-		1,778,447
Operating income (loss)		6,275,816		617,961			4,075,313		(351,564	)
Interest and other expenses, net		687,458		718,345			364,241		411,187
Income (loss) before income taxes		5,588,358		(100,384	)		3,711,072		(762,751	)
Income taxes		1,925,934		31,920			1,205,777		(239,936	)
Net income (loss)	$	3,662,424	$	(132,304	)	$	2,505,295	$	(522,815	)
Earnings per common share - basic:
Weighted average shares outstanding		4,510,505		4,516,893			4,510,505		4,517,105
Earnings per common share - dilutive:
Weighted average shares outstanding		4,510,701		4,516,893			4,510,897		4,517,105
Net income (loss) per share	$	0.81	$	(0.03	)	$	0.56	$	(0.12	)
Cash dividend - Common stock	$	0.33	$	0.33		$	0.165	$	0.165
Cash dividend - Class B common stock	$	0.30	$	0.30		$	0.15	$	0.15

Knape & Vogt Manufacturing Company and Subsidiaries
Condensed Consolidated Balance Sheets

	Dec. 31, 2005 (Unaudited)		July 2, 2005
Assets
Current Assets:
Cash and equivalents	$	9,607,229	$	6,349,702
Accounts receivable, net		19,564,979		19,944,781
Inventories		25,848,744		24,362,073
Assets held for sale		833,975		1,281,213
Prepaid expenses and other		1,286,062		934,711
Total current assets		57,140,989		52,872,480
Property, plant and equipment, net		21,225,441		22,120,924
Other assets		17,169,978		17,395,234
	$	95,536,408	$	92,388,638
Liabilities and Equity
Current liabilities	$	21,790,324	$	21,633,059
Long-term debt and capital leases		24,516,890		22,524,129
Deferred income taxes & other
long-term liabilities		8,281,201		10,123,573
Stockholders' equity		40,947,993		38,107,877
	$	95,536,408	$	92,388,638

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

(Unaudited)

	Six Months Ended
	Dec. 31, 2005			Jan. 1, 2005
From Operating Activities:
Net income (loss)	$	3,662,424		$	(132,304	)
Depreciation and amortization		2,496,385			3,327,143
Change in retirement plan cost		(1,447,627	)		132,373
Deferred income taxes		30,000			(1,204,142	)
Impairment expenses		-			1,778,447
Changes in operating assets
& liabilities		(1,146,196	)		(140,079	)
Other, net		37,233			12,393
Net cash provided by operating activities		3,632,219			3,773,831
From Investing Activities:
Additions to property, plant & equipment net		(1,493,139	)		(1,578,918	)
Other, net		183,575			(11,617	)
Net cash used for investing activities		(1,309,564	)		(1,590,535	)
From Financing Activities:
Cash dividends paid		(1,429,473	)		(1,426,156	)
Net change in long-term debt/capital leases		1,992,761			(6,751	)
Net cash used for financing activities		563,288			(1,432,907	)
Effect of Exchange Rates on Cash		371,584			427,587
Net increase in cash and equivalents	$	3,257,527		$	1,177,976