8-K

UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, DC 20549

FORM 8-K

CURRENT REPORT
Pursuant to Section 13 or 15(d) of the
Securities Exchange Act of 1934

Date of Report: April 20, 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, MI
(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 April 20, 2006, Knape & Vogt Manufacturing Company issued a press release announcing results for the third quarter and nine months ended April 1, 2006. 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

Exhibits

99.1     Press Release dated April 20, 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: April 20, 2006






Date: April 20, 2006 KNAPE & VOGT MANUFACTURING COMPANY
(Registrant)


   /S/ William R. Dutmers
——————————————
William R. Dutmers
Chairman and
Chief Executive Officer



   /S/ Leslie J. Cummings
——————————————
Leslie J. Cummings
Vice President of Finance and Treasurer

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 Third Quarter and Nine Month Results

GRAND RAPIDS, Michigan, April 20, 2006 – Knape & Vogt Manufacturing Co. (Nasdaq: KNAP) today announced the results for its third quarter and nine-month period ended April 1, 2006.

The Grand Rapids, Mich.-based manufacturer and distributor of drawer slides, shelving, storage and ergonomic office products reported that net sales grew 4.4 percent to $41.9 million for the third quarter of fiscal 2006, compared with net sales of $40.2 million during the same period a year ago. Sales of new products and product enhancements were $8.0 million for the third quarter of fiscal 2006 compared with $7.6 million in the third quarter of the prior year.

Net sales for the nine months ended April 1, 2006, grew to $123.6 million, up from $116.0 million for the same period in the prior year, representing a 6.5 percent increase.

KV reported third quarter net income of $1.4 million, or $0.31 per basic and diluted share, compared with net income of $1.7 million, or $0.37 per basic and diluted share, in the prior year third quarter. The prior year results included a one-time tax benefit of $594,000 related to the expiration of certain statutory tax periods and prior year research and development credit claims.

Net income for the nine months ended April 1, 2006, was $5.1 million, or $1.12 per basic and diluted share, compared with net income of $1.6 million, or $0.35 per basic and diluted share, for the same period in 2005. The current year results included a one-time settlement gain on one of the Company’s defined benefit plans of approximately $952,000 after-tax. The year-to-date fiscal 2005 net income results included an impairment/restructuring charge of approximately $1.3 million after-tax related to the relocation of the Company’s wire production operations to its Grand Rapids facility. Knape & Vogt said the improvement in net income, excluding these unusual items, reflected savings from the consolidation of the Company’s wire production, better operating cost leverage due to higher sales volumes and lower steel costs.

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)

	Nine Months Ended				Three Months Ended
	April 1, 2006		April 2, 2005		April 1, 2006		April 2, 2005
Net sales	$	123,594,698	$	116,038,344	$	41,918,679	$	40,169,917
Cost of sales		98,170,473		94,537,482		33,582,748		32,432,912
Gross margin		25,424,225		21,500,862		8,335,931		7,737,005
Selling and administrative expenses		16,406,712		16,804,638		5,638,711		5,437,189
Restructuring and impairment expenses		44,477		1,982,474		-		204,027
Operating income		8,973,036		2,713,750		2,697,220		2,095,789
Interest and other expenses, net		1,044,780		1,091,077		357,322		372,732
Income before income taxes		7,928,256		1,622,673		2,339,898		1,723,057
Income taxes		2,867,840		63,364		941,906		31,444
Net income	$	5,060,416	$	1,559,309	$	1,397,992	$	1,691,613
Earnings per common share - basic:
Weighted average shares outstanding		4,510,700		4,516,964		4,511,091		4,517,105
Earnings per common share - dilutive:
Weighted average shares outstanding		4,511,175		4,516,964		4,512,121		4,517,105
Net income per share	$	1.12	$	0.35	$	0.31	$	0.37
Cash dividend - Common stock	$	0.495	$	0.495	$	0.165	$	0.165
Cash dividend - Class B common stock	$	0.45	$	0.45	$	0.15	$	0.15

Knape & Vogt Manufacturing Company and Subsidiaries
Condensed Consolidated Balance Sheets

	April 1, 2006 (Unaudited)		July 2, 2005
Assets
Current Assets:
Cash and equivalents	$	9,886,938	$	6,349,702
Accounts receivable, net		20,952,281		19,944,781
Inventories		23,212,633		24,362,073
Assets held for sale		786,328		1,281,213
Prepaid expenses and other		1,637,488		934,711
Total current assets		56,475,668		52,872,480
Property, plant and equipment, net		20,797,701		22,120,924
Other assets		17,172,430		17,395,234
	$	94,445,799	$	92,388,638
Liabilities and Equity
Current liabilities	$	21,311,491	$	21,633,059
Long-term debt and capital leases		23,013,175		22,524,129
Deferred income taxes & other
long-term liabilities		8,460,150		10,123,573
Stockholders' equity		41,660,983		38,107,877
	$	94,445,799	$	92,388,638

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

	Nine Months Ended
	April 1, 2006			April 2, 2005
From Operating Activities:
Net income	$	5,060,416		$	1,559,309
Depreciation and amortization		3,683,899			4,695,858
Change in retirement plan cost		(1,263,833	)		203,409
Deferred income taxes		250,000			(1,066,209	)
Impairment expenses		-			1,778,447
Changes in operating assets
& liabilities		(756,758	)		(2,219,599	)
Other, net		(107,726	)		8,806
Net cash provided by operating activities		6,865,998			4,960,021
From Investing Activities:
Additions to property, plant & equipment		(2,162,717	)		(2,069,050	)
Proceeds from sales of property, plant & equip		246,000			10,250
Other, net		(103,164	)		(28,257	)
Net cash used for investing activities		(2,019,881	)		(2,087,057	)
From Financing Activities:
Cash dividends paid		(2,145,196	)		(2,141,041	)
Stock options exercised		11,907			-
Net change in long-term debt/capital leases		489,046			(10,214	)
Net cash used for financing activities		(1,644,243	)		(2,151,255	)
Effect of Exchange Rates on Cash		335,362			379,654
Net increase in cash and equivalents	$	3,537,236		$	1,101,363