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KNAPE & VOGT MFG. FIRST QUARTER NET INCOME RISES 9.5 PERCENT ON 7.1 PERCENT SALES GAIN; WINS SETTLEMENT IN DEFAMATION SUIT

 GRAND RAPIDS, Mich., Oct. 15 /PRNewswire/ -- Knape & Vogt Manufacturing Company (NASDAQ-NMS: KNAP) today announced that sales for the fiscal first quarter ended Sept. 30, 1993, rose 7.1 percent to $31.9 million from $29.8 million a year ago and net income increased 9.5 percent to $1,841,213, or $0.35 per share, from $1,680,815, or $0.32 per share, in the comparable period a year before.
 Raymond E. Knape, chairman, president and chief executive officer, in commenting on the results said, "The increase in revenues and earnings in the first quarter was led by the growth in sales of our 8400 precision drawer slides and 1284 series of European-type drawer slides. Those slides are gaining an increasing acceptance by our customer base and are attracting new customers. As a result, drawer slides now account for a larger percentage of our sales mix than a year or two ago.
 "Our first quarter cost of goods sold inched slightly higher to 72.7 percent of net sales from 71.5 percent a year ago due to drawer slides having lower margins than shelving products and recent increases in steel and particle board. Because of the competitive nature of our business, it has been difficult to pass along the increases," Knape stated.
 "More than offsetting the increases has been the success we are experiencing with our cost control efforts," he said. "For example, our selling and administrative expenses fell to 17.8 percent in the most recent quarter from 19.2 percent last year. Through these belt- tightening efforts, our net margins rose slightly to 5.8 percent from 5.6 percent."
 Knape said the continued widening of the U.S. dollar vs. the Canadian dollar adversely impacted better results from its Toronto, Ontario, Canada-based KV Canada subsidiary. "KV Canada sales continue to improve and we believe this reflects a slight improvement in the Canadian economy," Knape said. Sales of the Montreal, Quebec, Canada-based Roll-it subsidiary were also higher in the quarter. "In addition, Roll-it has received word from its largest customer that it will be resuming its store remodeling and expansion program at the start of the calendar year which should improve Roll-it's results in our third quarter," he said.
 Knape noted that while its Benton Harbor, Michigan-based Modar subsidiary showed some weakness in the early summer months, September was strong and the plant is running at near-capacity again. Sales at the Feeny Manufacturing subsidiary in Muncie, Ind., continued their upward trend, helped by increased shipments of new products introduced in the last two to three quarters.
 Knape said the lawsuit filed in July against Accuride International alleging that Accuride deliberately interfered with the disrupted Knape & Vogt's efforts to market its KV 8400 precision drawer slide was resolved on Oct. 1, 1993, with both parties entering into a consent order to correct and remedy unfounded and misleading statements made by Accuride employees about the 8400. "The consent order enjoins Accuride from making unfounded, disparaging statements about the products and requires a retraction to be printed in industry-related trade publications," he said. Accuride was also ordered to reimburse Knape & Vogt for its costs and fees in the litigation.
 Knape & Vogt manufactures wall-attached and freestanding shelving and a wide variety of home furnishing items and also derives about one-third of its sales from drawer slides for OEM office furniture, kitchen and utility cabinet manufacturers.
 For more information on Knape & Vogt Manufacturing Company, simply dial 1-800-PRO-INFO and enter the company number 099.
 KNAPE & VOGT MANUFACTURING COMPANY AND SUBSIDIARIES
 Condensed Consolidated Statement of Income
 (Unaudited)
 Three Months
 1993 1992
 For the period ended Sept. 30,
 Net sales $31,917,684 $29,797,218
 Cost of sales 23,199,793 21,311,668
 Gross profit 8,717,891 8,485,550
 Selling and administrative expenses 5,683,582 5,730,250
 Operating income 3,034,309 2,755,300
 Other expense 169,096 158,485
 Income before income taxes 2,865,213 2,596,815
 Income taxes 1,024,000 916,000
 Net income $ 1,841,213 $ 1,680,815
 Per Common Share:
 Net income $ .35 $ .32
 Cash dividend-common stock $ .165 $ .165
 Cash dividend-Class B common stock $ .15 $ .15
 Weighted average shares outstanding 5,333,035 5,314,194
 Condensed Consolidated Balance Sheet
 (Unaudited)
 At Sept. 30, 1993 1992
 Assets
 Current assets $42,600,340 $42,374,098
 Property, plant and equipment-net 48,426,286 42,760,213
 Other assets 4,661,892 4,608,373
 Total $95,688,518 $89,742,684
 Liabilities and Equity:
 Current liabilities $ 9,092,551 $12,084,509
 Long-term debt 11,950,000 5,350,000
 Deferred income taxes and other
 long-term liabilities 10,226,716 9,603,128
 Stockholders' equity 64,419,251 62,705,047
 Total $95,688,518 $89,742,684
 -0- 10/15/93
 /CONTACT: Richard C. Simkins, vice president-finance of Knape & Vogt Manufacturing, Co., 616-459-3311, ext. 203; or Jack Queeney or Mike Arneth, 312-266-7800, or Regina Ryan, 212-661-8030, all of the Financial Relations Board, Inc./
 (KNAP)


CO: Knape & Vogt Manufacturing Company ST: Michigan IN: SU: ERN

PS -- NY041 -- 2770 10/15/93 13:11 EDT
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Date:Oct 15, 1993
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