The Keller Manufacturing Company, Inc. Reports Results For 2007

  
    
  
  
    
      The Keller Manufacturing Company, Inc., an Indiana corporation (“Keller”)(Pink 
      Sheets: KMFI), announced today its 2007 year end financials and its 
      return to operational profitability. Audited financial statements for 
      2007 now posted on the Keller website (www.kellermanufacturing.com) 
      revealed Keller had $77,331 in operating income and a gain in shareholder’s 
      equity from a deficit in 2006 of ($3,349,544) to shareholders equity of 
      $1,170,054 in 2007, due primarily to the termination of the pension plan 
      as discussed below. This was Keller’s first 
      year to recognize operating income since 2000 and first year to return 
      to positive shareholder’s equity since 2003. 
      For 2007, Keller reported a net loss of ($1,167,729) and comprehensive 
      income of $4,507,448.
    
    
      Keller’s operating income was the result of 
      the continued growth and performance of Keller’s 
      operational subsidiary, Paragon Door Designs, Inc., (“Paragon”). 
      The significant increase in shareholder’s 
      equity from 2006 to 2007 was the result of the settlement Keller reached 
      with the Pension Board Guaranty Corporation (“PBGC”) 
      related to Keller’s decision to terminate The 
      Keller Manufacturing Company Employee’s 
      Pension Plan (“The Plan”). 
      On December 21, 2007, Keller announced it had entered into a settlement 
      agreement which released Keller from further liability to The Plan. 
      Additional information about the settlement can be found on Keller’s 
      website (www.kellermanufacturing.com) 
      in the press release of December 21, 2007.
    
    
      Paragon has been profitable for many years and had operating income of 
      $174,192 on $4,729,716 net sales in 2007. From 2006 to 2007, Paragon’s 
      net sales increased over 9% and its operational income increased over 
      72%.
    
    
      In its history, Keller has experienced several corporate adaptations as 
      it has responded to the pressures and opportunities of the domestic and 
      international manufacturing environments. In January of 2005, Keller 
      announced that it was exiting all furniture operations and would begin a 
      search for a new operating business. In January of 2006 Keller announced 
      the acquisition of approximately 85% equity interest in Paragon. Founded 
      in 1993, Paragon offers custom steel and fiberglass residential entry 
      doors and storm doors with a variety of glass styles and finishes. 
      Paragon sells through a network of window and door dealers, remodelers, 
      and home improvement companies in 20 states. Paragon Founder, President, 
      and Chief Executive Officer, David N. Burks, an industry veteran with 
      over 25 years of experience, owns the balance of the equity not acquired 
      by Keller.
    
    
      The Keller Manufacturing Company, Inc. shares trade on the Pink Sheets (www.pinksheets.com) 
      over-the-counter market under the symbol “KMFI” 
      (or “KMFI.pk”). 
      Keller is no longer registered with the Securities and Exchange 
      Commission (“SEC”) 
      and therefore does not file reports with the SEC. Keller has 4,965,224 
      shares issued and outstanding as of December 31, 2007.
    
    
      The news release contains certain statements that are “forward-looking 
      statements” within the meaning of Section 27A 
      of the Securities Act of 1933 and Section 21E of the Securities Exchange 
      Act of 1934, as amended. Those statements may include statements 
      regarding the intent, belief or current expectations of the Company or 
      its officers with respect to (i) the Company’s 
      strategic plans, (ii) the policies of the Company regarding capital 
      expenditures, dividends, financing and other matters, and (iii) industry 
      trends affecting the Company’s financial 
      condition or results of operations. Readers of this news release are 
      cautioned that reliance on any forward-looking statement involves risks 
      and uncertainties. Although the Company believes that the assumptions on 
      which the forward-looking statements contained herein are based are 
      reasonable, any of those assumptions could prove to be inaccurate given 
      the inherent uncertainties as to the occurrence or nonoccurrence of 
      future events. There can be no assurance that the forward looking 
      statements contained in this news release will prove to be accurate. The 
      inclusion of a forward-looking statement herein should not be regarded 
      as a representation by the Company that the Company’s 
      objectives will be achieved. Additional information regarding these and 
      other risks and uncertainties is contained in our condensed consolidated 
      statement of earnings attached hereto and in the 2007 audited financial 
      statements posted on our website www.kellermanufacturing.com.
    
    
      For more information about Keller, visit our website www.kellermanufacturing.com. 
      For more information about Keller’s 
      subsidiary, Paragon, visit their website at www.paragondoor.com.
    
    
    
    
      
        
          Consolidated Balance Sheets
        
      
      
        
           
        
        
           
        
        
        
        
           
        
        
        
        
           
        
        
        
      
      
        
          The Keller Manufacturing Company, Inc. and Subsidiary
        
      
      
        
        
        
        
        
        
        
        
        
        
        
        
        
           
        
      
      
        
        
        
        
        
        
        
        
        
          December 31
        
      
      
        
        
        
        
        
        
        
        
        
          2007
        
        
        
        
          2006
        
      
      
        
          Assets
        
        
        
        
        
        
        
        
        
      
      
        
        
        
        
        
        
        
        
        
        
        
        
        
           
        
      
      
        
          Current Assets
        
        
        
        
        
        
        
        
        
      
      
        
        
        
          Cash and cash equivalents
        
        
        
        
          $ 12,697
        
        
        
        
          $ 40,937
        
        
        
      
      
        
        
        
          Accounts receivable, less allowance for doubtful accounts of $48,000 
          each year
        
        
        
        
        
        
        
        
        
      
      
        
        
        
        
        
          634,673
        
        
        
        
          486,645
        
        
        
      
      
        
        
        
          Inventories
        
        
        
        
          434,887
        
        
        
        
          433,506
        
        
        
      
      
        
        
        
          Prepaid expenses and other
        
        
        
        
          68,523
        
        
        
        
          71,357
        
        
        
      
      
        
        
        
          Deferred income taxes
        
        
        
        
          35,000
        
        
        
        
          -
        
        
           
        
      
      
        
        
        
        
        
        
        
        
        
        
        
        
        
           
        
      
      
        
        
        
          Total Current Assets
        
        
        
        
          1,185,780
        
        
        
        
          1,032,445
        
        
        
      
      
        
        
        
        
        
        
        
        
        
        
        
        
        
           
        
      
      
        
          Property and Equipment, net
        
        
        
        
          196,552
        
        
        
        
          109,097
        
        
        
      
      
        
        
        
        
        
        
        
        
        
        
        
        
        
           
        
      
      
        
          Deferred Income Taxes
        
        
        
        
          215,000
        
        
        
        
          -
        
        
        
      
      
        
        
        
        
        
        
        
        
        
        
        
        
        
           
        
      
      
        
          Goodwill
        
        
        
        
          703,444
        
        
        
        
          703,444
        
        
        
      
      
        
        
        
        
        
        
        
        
        
           
        
        
        
        
           
        
      
      
        
        
        
          Total Assets
        
        
        
        
          $ 2,300,776
        
        
        
        
          $ 1,844,986
        
        
           
        
      
      
        
        
        
        
        
        
        
        
        
        
        
        
        
           
        
      
      
        
          Liabilities and Stockholders' Equity (Deficit)
        
        
        
        
        
        
        
        
        
      
      
        
        
        
        
        
        
        
        
        
        
        
        
        
           
        
      
      
        
          Current Liabilities
        
        
        
        
        
        
        
        
        
      
      
        
        
        
          Checks issued in excess of deposits
        
        
        
        
          $ 79,906
        
        
        
        
        
      
      
        
        
        
          Line of credit
        
        
        
        
          176,010
        
        
        
        
          $ 198,000
        
        
        
      
      
        
        
        
          Accounts payable
        
        
        
        
          150,917
        
        
        
        
          184,798
        
        
        
      
      
        
        
        
          Accrued expenses
        
        
        
        
          312,902
        
        
        
        
          224,076
        
        
        
      
      
        
        
        
          Current maturities of note payable
        
        
        
        
          28,854
        
        
        
        
          -
        
        
           
        
      
      
        
        
        
        
        
        
        
        
        
        
        
        
        
           
        
      
      
        
        
        
          Total Current Liabilities
        
        
        
        
          748,589
        
        
        
        
          $ 606,874
        
        
        
      
      
        
        
        
        
        
        
        
        
        
        
        
        
        
           
        
      
      
        
          Accrued Pension Liability
        
        
        
        
        
        
        
        
          4,587,656
        
        
        
      
      
        
        
        
        
        
        
        
        
        
        
        
        
        
           
        
      
      
        
          Note Payable, less current portion
        
        
        
        
          373,146
        
        
        
        
          -
        
        
           
        
      
      
        
        
        
        
        
        
        
        
        
        
        
        
        
           
        
      
      
        
        
        
          Total Liabilities
        
        
        
        
          1,121,735
        
        
        
        
          5,194,530
        
        
        
      
      
        
        
        
        
        
        
        
        
        
        
        
        
        
           
        
      
      
        
          Minority Interest
        
        
        
        
          8,987
        
        
        
        
          -
        
        
        
      
      
        
        
        
        
        
        
        
        
        
        
        
        
        
           
        
      
      
        
          Stockholders' Equity (Deficit)
        
        
        
        
        
        
        
        
        
      
      
        
        
        
          Common Stock, no par value, 40,000,000 shares authorized, 4,965,224 
          and 4,920,224, respectively, shares issued and outstanding
        
        
        
        
        
        
        
        
        
      
      
        
        
        
        
        
        
        
        
        
           
        
      
      
        
        
        
        
        
          462,973
        
        
        
        
          450,823
        
        
        
      
      
        
        
        
          Additional paid-in capital
        
        
        
        
          29,190
        
        
        
        
          29,190
        
        
        
      
      
        
        
        
          Retained earnings
        
        
        
        
          677,891
        
        
        
        
          1,845,620
        
        
        
      
      
        
        
        
          Accumulated other comprehensive loss
        
        
        
        
          -
        
        
        
        
          (5,675,177
        
        
          )
        
      
      
        
        
        
        
        
        
        
        
        
        
        
        
        
           
        
      
      
        
        
        
          Total Stockholders' Equity (Deficit)
        
        
        
        
          1,170,054
        
        
        
        
          (3,349,544
        
        
          )
        
      
      
        
        
        
        
        
        
        
        
        
        
        
        
        
           
        
      
      
        
        
        
          Total Liabilities and Stockholders' Equity (Deficit)
        
        
        
        
          $ 2,291,789
        
        
        
        
          $ 1,844,986
        
        
           
        
      
    
    
    
    
      
        
          Consolidated Statement of Operations and Other Comprehensive Income 
          (Loss)
        
      
      
        
           
        
        
        
        
           
        
        
        
        
           
        
        
        
      
      
        
          The Keller Manufacturing Company, Inc. and Subsidiary
        
      
      
        
        
        
        
        
        
        
        
        
        
        
           
        
      
      
        
        
        
        
        
        
        
          Year Ended December 31
        
      
      
        
        
        
        
        
        
        
          2007
        
        
        
        
          2006
        
      
      
        
        
        
        
        
        
        
        
        
        
        
           
        
      
      
        
          Net Sales
        
        
        
        
          $ 4,729,716
        
        
        
        
        
        
          $ 4,329,208
        
        
        
      
      
        
        
        
        
        
        
        
        
        
        
        
           
        
      
      
        
          Cost of Goods sold
        
        
        
        
          3,435,591
        
        
           
        
        
        
        
          3,114,899
        
        
           
        
      
      
        
        
        
        
        
        
        
        
        
        
        
           
        
      
      
        
          Gross Profit
        
        
        
        
          1,294,125
        
        
        
        
        
        
          1,214,309
        
        
        
      
      
        
        
        
        
        
        
        
        
        
        
        
           
        
      
      
        
          Selling, General and Administrative Expenses
        
        
        
        
          1,216,794
        
        
           
        
        
        
        
          1,230,700
        
        
           
        
      
      
        
        
        
        
        
        
        
        
        
        
        
           
        
      
      
        
          Operating Income (Loss)
        
        
        
        
          77,331
        
        
        
        
        
        
          (16,391
        
        
          )
        
      
      
        
        
        
        
        
        
        
        
        
        
        
           
        
      
      
        
          Effect of Pension Plan Termination
        
        
        
        
          (1,487,521
        
        
          )
        
        
        
        
          -
        
        
        
      
      
        
        
        
        
        
        
        
        
        
        
        
           
        
      
      
        
          Other Income (Expense), Net
        
        
        
        
          15,047
        
        
           
        
        
        
        
          (10,630
        
        
          )
        
      
      
        
        
        
        
        
        
        
        
        
        
        
           
        
      
      
        
          Net Loss Before Income Taxes
        
        
        
        
          (1,395,143
        
        
          )
        
        
        
        
          (27,021
        
        
          )
        
      
      
        
        
        
        
        
        
        
        
        
        
        
           
        
      
      
        
          Income Tax Benefit (Expense)
        
        
        
        
          250,000
        
        
           
        
        
        
        
          (4,272
        
        
          )
        
      
      
        
        
        
        
        
        
        
        
        
        
        
           
        
      
      
        
          Net Loss Before Minority Interest
        
        
        
        
          (1,145,143
        
        
          )
        
        
        
        
          (31,293
        
        
          )
        
      
      
        
        
        
        
        
        
        
        
        
        
        
           
        
      
      
        
          Minority Interest in Income of Consolidated Subsidiary
        
        
        
        
        
        
        
        
        
      
      
        
        
        
          (22,586
        
        
          )
        
        
        
        
          -
        
        
           
        
      
      
        
        
        
        
        
        
        
        
        
        
        
           
        
      
      
        
          Net Loss
        
        
        
        
          (1,167,729
        
        
          )
        
        
        
        
          (31,293
        
        
          )
        
      
      
        
        
        
        
        
        
        
        
        
        
        
           
        
      
      
        
          Effect of Pension Plan Termination
        
        
        
        
          5,675,177
        
        
        
        
        
        
          -
        
        
        
      
      
        
        
        
        
        
        
        
        
        
        
        
           
        
      
      
        
          Additional Pension Liability Adjustment
        
        
        
        
          -
        
        
           
        
        
        
        
          (266,420
        
        
          )
        
      
      
        
        
        
        
        
        
        
        
        
        
        
           
        
      
      
        
          Total Other Comprehensive Income (Loss)
        
        
        
        
          $ 4,507,448
        
        
           
        
        
        
        
          $ (297,713
        
        
          )