Knape & Vogt (NASDAQ:KNAP)
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Knape & Vogt Reports Improved Second-Quarter and Six-Month Results
GRAND RAPIDS, Mich., Jan. 12 /PRNewswire-FirstCall/ -- Knape & Vogt
Manufacturing Co. today announced double-digit net sales growth for the six
months and quarter ended December 27, 2003.
The Grand Rapids, Mich.-based manufacturer and distributor of drawer slides,
shelving, storage and ergonomic office products reported that net sales
increased 14.2 percent to $34.5 million for the second quarter of fiscal 2004,
compared with net sales of $30.2 million during the same period a year ago. KV
reported net income of $441,904, or $0.10 per diluted share, for the
just-completed quarter, compared with $851,728, or $0.19 per diluted share,
during the same period in fiscal 2003. Excluding a one-time after-tax gain of
$.5 million related to the settlement of certain legal matters, net income in
the prior year second quarter would have been approximately $.3 million or $0.07
per diluted share.
The Company attributed the strong sales growth to new products introduced during
the past year, which accounted for $4.4 million of sales in the quarter. The
new products not only generated sales with existing customers but also allowed
the Company to develop new customers in key markets.
"We have grown sales and gained market share with both existing and new
customers," said Bill Dutmers, chairman and CEO. "Our ability to bring
innovative, value-added products to the markets we serve, combined with our
outstanding customer service have proven to be key reasons for our growth over
the past six months."
"We see potential to continue this growth trend in the coming months," Dutmers
continued. "Our focus on key markets is critical. We listen to our customers'
needs and respond quickly with products and services that address their issues,
serving as a true partner in helping them achieve their business objectives.
Many of our new products -- those already introduced along with those currently
under development -- provide enhanced features and at the same time allow our
customers to increase their productivity. This can be seen in products, such as
our 4X4 Pocket Door(TM) slide and our Interlok(TM) lateral drawer anti-tip and
locking system."
KV also attributed the sales growth to its expanded sales force and sales rep
network, which is beginning to generate new retail and wholesale customers.
For the first six months of fiscal 2004, KV reported a 15.4 percent increase in
sales and higher net income compared to the prior year period. KV posted net
income of $1.1 million, or $0.25 per diluted share, on net sales of $70.6
million, compared with net income of $1.0 million, or $0.23 per diluted share,
on net sales of $61.2 million for the first six months of fiscal 2003. New
products accounted for $9.8 million in sales for the first six months of fiscal
2004, compared with $5.2 million in the year-ago period.
"Our entire organization is committed to positioning KV for future growth,"
stated Dutmers. "We involve many cross functional teams in our new product
development process, lean manufacturing activities and customer service
initiatives. This helps foster a culture of continuous improvement and ensures
that we remain focused on innovation that drives top and bottom line
performance."
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
http://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," "potential" 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.
Knape & Vogt Manufacturing Company and Subsidiaries
Condensed Consolidated Statements of Income
(Unaudited)
Six Months Ended Three Months Ended
Dec. 27, 2003 Dec. 28, 2002 Dec. 27, 2003 Dec. 28, 2002
Net sales $70,623,675 $61,218,080 $34,498,436 $30,219,890
Cost of sales 56,143,079 47,583,496 27,182,375 23,639,237
Gross margin 14,480,596 13,634,584 7,316,061 6,580,653
Selling and
administrative
expenses 11,962,694 11,071,891 6,062,245 4,921,448
Other - 271,325 - -
Operating income 2,517,902 2,291,368 1,253,816 1,659,205
Interest and other
expenses, net 839,627 636,815 446,698 317,769
Income before
income taxes 1,678,275 1,654,553 807,118 1,341,436
Income taxes 566,497 607,862 365,214 489,708
Net income $1,111,778 $1,046,691 $441,904 $851,728
Earnings per common
share - basic and
diluted:
Weighted average
shares
outstanding 4,516,137 4,517,472 4,516,349 4,517,480
Net income per
share $.25 $.23 $.10 $.19
Cash dividend -
Common stock $.33 $.33 $.165 $.165
Cash dividend - Class B
common stock $.30 $.30 $.15 $.15
Knape & Vogt Manufacturing Company and Subsidiaries
Condensed Consolidated Balance Sheets
December 27, 2003
(Unaudited) June 28, 2003
Assets
Current Assets:
Cash $4,583,171 $3,846,611
Accounts receivable, net 16,862,223 16,820,600
Inventories 21,218,846 18,979,056
Prepaid expenses and other 1,507,187 731,751
Total current assets 44,171,427 40,378,018
Property, plant and equipment, net 31,206,900 33,989,109
Other assets 17,723,160 17,981,702
$93,101,487 $92,348,829
Liabilities and Equity
Current liabilities $20,668,512 $19,920,749
Long-term debt and capital leases 24,046,310 24,052,605
Deferred income taxes & other
long-term liabilities 13,399,120 13,613,613
Stockholders' equity 34,987,545 34,761,862
$93,101,487 $92,348,829
Knape & Vogt Manufacturing Company and Subsidiaries
Condensed Consolidated Statements of Cash Flows
(Unaudited)
Six Months Ended
December 27, 2003 December 28, 2002
From Operating Activities:
Net income $1,111,778 $1,046,691
Depreciation and amortization 3,278,015 3,552,611
Decrease in prepaid pension cost 203,585 52,234
Deferred income taxes 205,319 265,000
Loss (gain) on disposal of
fixed assets (4,349) 87,615
Changes in operating assets
& liabilities (1,931,557) (855,273)
Other, net (30,801) 15,448
Net cash provided by operating
activities 2,831,990 4,164,326
From Investing Activities:
Additions to property, plant
& equipment net (764,415) (1,634,228)
Proceeds from sales of property,
plant & equipment 800 243,527
Other, net (21,962) (21,411)
Net cash used for investing
activities (785,577) (1,412,112)
From Financing Activities:
Cash dividends paid (1,424,363) (1,423,152)
Net change in long-term
debt/capital leases (6,295) -
Repurchase and retirement of
common stock - (5,934)
Net cash used for financing
activities (1,430,658) (1,429,086)
Effect of Exchange Rates on Cash 120,805 (80,276)
Net increase in cash $736,560 $1,242,852
DATASOURCE: Knape & Vogt Manufacturing Company
CONTACT: Leslie Cummings, Vice President of Finance and Treasurer of
Knape & Vogt Manufacturing Company, +1-616-459-3311, ext. 225; Jeff Lambert or
Paula MacKenzie of Lambert, Edwards & Associates, Inc., +1-616-233-0500,
, for Knape & Vogt Manufacturing Company
Web site: http://www.knapeandvogt.com/