Knape & Vogt (NASDAQ:KNAP)
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GRAND RAPIDS, Mich., April 20 /PRNewswire-FirstCall/ -- 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 http://www.knapeandvogt.com/ .
Knape & Vogt Manufacturing Company and Subsidiaries
Condensed Consolidated Statements of Income
(Unaudited)
Nine Months Ended Three Months Ended
April 1, April 2, April 1, April 2,
2006 2005 2006 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 July 2, 2005
(Unaudited)
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 net (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
DATASOURCE: Knape & Vogt Manufacturing Co.
CONTACT: Leslie Cummings, Vice President of Finance and Treasurer of
Knape & Vogt Manufacturing Company, +1-616-459-3311, Ext. 225; Jeff Lambert or
Ryan McGrath of Lambert, Edwards & Associates, +1-616-233-0500, for Knape &
Vogt Manufacturing Company
Web site: http://www.knapeandvogt.com/