-----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, CJDfpmfFvdlL/8TSK1LG98x4nJlEdmM4OQDlPbnjlPPCl7StXPWJSVjK5hxw9bOu VPPAVRbaN9YHsdKLtk7R7g== 0000926044-97-000059.txt : 19970505 0000926044-97-000059.hdr.sgml : 19970505 ACCESSION NUMBER: 0000926044-97-000059 CONFORMED SUBMISSION TYPE: 10-Q/A PUBLIC DOCUMENT COUNT: 1 CONFORMED PERIOD OF REPORT: 19960930 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: 97594446 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 September 30, 1996 OR [ ] 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 [ ] 3,336,889 Common shares were outstanding as of November 8, 1996. 2,548,619 Class B common shares were outstanding as of November 8, 1996. KNAPE & VOGT MANUFACTURING COMPANY AND SUBSIDIARIES MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS Certain matters discussed in this section include forward looking statements which include risks and uncertainties including but not limited to economic, competitive, governmental and technological factors affecting Knape & Vogt Manufacturing Companies operations, markets, products, services and prices. 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 three month periods ended September 30, 1996 and 1995: Three Months Ended September 30, ----------------------------------------------------- 1996 1995 - ------------------------------------------------------------------------------------ Shelving systems $ 22.4 50.0% $ 21.6 54.3% Drawer slides 15.1 33.7% 11.1 27.9% Hardware 6.4 14.3% 6.3 15.8% Furniture components 0.9 2.0% 0.8 2.0% - ----------------------------------------- ------------------------------- ----------- Total $ 44.8 100.0% $ 39.8 100.0% ========================================= =============================== ===========
Net sales for the first quarter of fiscal year 1997 increased $5.0 million, or 12.7%, over the comparable period of fiscal year 1996. Shelving sales increased by $.8 million, or 3.7%, compared to the first quarter of fiscal year 1996 primarily due to an increase in sales of wall attached shelving. Drawer slide sales increased by $4.0 million, or 36%. The increase in drawer slide sales was primarily due to increases in the sale of precision drawer slides. Hardware sales increased slightly compared to the prior year with kitchen products manufactured by Feeny continuing to be introduced into the retail market. Furniture component sales increased slightly. This category of sales is expected to decrease in the future, as the Company announced on October 24, 1996 it signed a letter of intent to sell Modar to Fournier Furniture. Costs and Expenses Cost of sales was 74.4% of sales for the quarter compared to 76.2% of sales for the first quarter of 1996. The lower cost of sales is due to decreases in raw material prices, and improved absorption of overhead costs due to the higher sales volumes. Selling and administrative expenses decreased to 16.2% of sales compared to 17.4% for the period ended September 30, 1995. The Company was able to maintain selling expense at approximately the same level as the prior year with a large increase in sales. Administrative expense relating to Michigan taxes increased compared to the prior year when the expense was low due to overpayments in fiscal year 1995. Other Expenses Interest expense was $503,307 for the quarter compared to $592,655 for the quarter ended September 30, 1995. The Company has reduced its level of borrowing to $36,000,000 at September 30, 1996 from $39,400,000 at September 30, 1995. Income Taxes The effective tax rate for the quarter ended September 30, 1996 was 35.9% compared to 39.2% for the quarter ended September 30, 1995. Lower pretax income for the quarter ended September 30, 1995 increased the impact of permanent differences, when computing the effective tax rate. Income from Continuing Operations Income from continuing operations of $2,346,592 for the first quarter of 1997 was a first quarter record. Earnings per share from continuing operations increased 100.0% to $.40 compared to $.20 in the first quarter of last year. Income from Discontinued Operation The estimated loss on discontinued operation recorded at June 30, 1996 includes an estimate of the operating loss until the Roll-it facility is disposed of. There was no income, or loss, recorded on discontinued operation for the quarter ended September 30, 1996 as current estimates of the loss from disposal approximate prior estimates. For the first quarter of last year the discontinued operation earned $361,284, or $0.06 per share. It is the Company's intent to sell the Roll-it division during fiscal year 1997 through an independent broker. Net Income Net income for the quarter of $2,346,592, was 5.2% of sales compared to $1,507,711, for the first quarter of last year which was 3.8% of sales. Net income per share increased by 53.8% to $.40 compared to $.26 for the first quarter of fiscal year 1996. Liquidity and Capital Resources The Company's net cash position decreased during the first three months to $215,264 from $527,572 at June 30, 1996. Net cash from operating activities provided $1,605,947. Higher earnings and a decrease in accounts payable was partially offset by an increase in accounts receivable due to the sales terms offered to customers and the higher sales levels. Capital expenditures totaled $1,538,118 for the three months ended September 30, 1996, compared to $766,371 last year. Capital expenditures for the fiscal year are expected to be at approximately the same levels as last year. The debt increased $1,000,000 due to the increase in accounts receivable and the capital expenditures. Debt levels are expected to decrease during the remainder of fiscal year 1997. Anticipated cash flow from operations will substantially fund working capital, capital expenditures and dividend payments. 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 & Vogt Manufacturing Company (Registrant) Date: May 1, 1997 /s/ Richard C. Simkins Richard C. Simkins Executive Vice President, CFO, Secretary, and Treasurer -----END PRIVACY-ENHANCED MESSAGE-----