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Previous: MEDICAL GRAPHICS CORP /MN/, NT 11-K, 1998-06-30 |
Next: FEDERATED SHORT TERM MUNICIPAL TRUST, 485APOS, 1998-06-30 |
<PAGE>
SECURITIES AND EXCHANGE COMMISSION
Washington, DC 20549
-------------------------------------
FORM 11-K
ANNUAL REPORT
Commission File No. 0-9899
Pursuant to Section 15(d) of the
Securities Exchange Act of 1934
For the Plan's fiscal year ended DECEMBER 31, 1997
--------------------------------------
A. Full title of the plan and the address of the plan, if different from
that of the issuer named below:
MEDICAL GRAPHICS CORPORATION
401(k) SAVINGS PLAN
B. Name of issuer of the securities held pursuant to the plan and the
address of its principal executive office:
Medical Graphics Corporation
350 Oak Grove Parkway
Saint Paul, Minnesota 55127
This Form 11-K consists of 17 pages (including exhibits). The index to exhibits
is set forth on page 3.
<PAGE>
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the
Trustees of the Medical Graphics Corporation 401(k) Savings Plan have duly
caused this annual report to be signed on its behalf by the undersigned
thereunto duly authorized.
Date: June 30, 1998 MEDICAL GRAPHICS CORPORATION 401(k) SAVINGS
PLAN
By /s/ Dale H. Johnson
------------------------------------
Dale H. Johnson
Trustee
2
<PAGE>
INDEX TO EXHIBITS
<TABLE>
<CAPTION>
Exhibit Number Description Page
- -------------- ----------- ----
<S> <C> <C>
23.1 Consent of Independent Auditors - Deloitte 4
& Touche LLP
99 Financial Statements 5
Independent Auditors' Report of 7
Deloitte & Touche LLP
Medical Graphics 401(k) Savings Plan 8
Financial Statements for the Years
Ended December 31, 1997 and 1996
Supplemental Schedules for the Year 15
Ended December 31, 1997
</TABLE>
3
<PAGE>
INDEPENDENT AUDITORS' CONSENT
We consent to the incorporation by reference in Registration Statement No.
33-64430 of Medical Graphics Corporation on Form S-8 of our report dated
June 9, 1998 appearing in this annual report on Form 11-K of the Medical
Graphics Corporation 401(k) Savings Plan for the year ended December 31, 1997.
DELOITTE & TOUCHE LLP
/s/ DeLoitte & Touche LLP
Minneapolis, Minnesota
June 26, 1998
<PAGE>
MEDICAL GRAPHICS CORPORATION
401(k) SAVINGS PLAN
FINANCIAL STATEMENTS FOR THE YEARS ENDED
DECEMBER 31, 1997 AND 1996, SUPPLEMENTAL
SCHEDULES FOR THE YEAR ENDED DECEMBER 31,
1997, AND INDEPENDENT AUDITORS' REPORT
<PAGE>
MEDICAL GRAPHICS CORPORATION
401(k) SAVINGS PLAN
TABLE OF CONTENTS
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
PAGE
<S> <C>
INDEPENDENT AUDITORS' REPORT 1
FINANCIAL STATEMENTS FOR THE YEARS ENDED DECEMBER 31, 1997 AND 1996:
Statements of Net Assets Available for Plan Benefits 2
Statements of Changes in Net Assets Available for Plan Benefits 3
Notes to Financial Statements 4
SUPPLEMENTAL SCHEDULES FURNISHED PURSUANT TO THE
REQUIREMENTS OF FORM 5500 AS OF AND FOR THE YEAR
ENDED DECEMBER 31, 1997:
Item 27a - Schedule of Assets Held for Investment Purposes 10
Item 27d - Schedule of Reportable Transactions 11
</TABLE>
<PAGE>
INDEPENDENT AUDITORS' REPORT
Board of Directors
Medical Graphics Corporation
Saint Paul, Minnesota
We have audited the accompanying statements of net assets available for plan
benefits of Medical Graphics Corporation 401(k) Savings Plan (the Plan) as of
December 31, 1997 and 1996 and the related statements of changes in net assets
available for plan benefits for the years then ended. These financial
statements are the responsibility of the Plan's management. Our responsibility
is to express an opinion on these financial statements based on our audits.
We conducted our audits in accordance with generally accepted auditing
standards. Those standards require that we plan and perform the audit to obtain
reasonable assurance concerning whether the financial statements are free of
material misstatement. An audit includes examining, on a test basis, evidence
supporting the amounts and disclosures in the financial statements. An audit
also includes assessing the accounting principles used and significant estimates
made by management, as well as evaluating the overall financial statement
presentation. We believe that our audits provide a reasonable basis for our
opinion.
In our opinion, such financial statements present fairly, in all material
respects, the net assets available for plan benefits as of December 31, 1997 and
1996, and the changes in net assets available for plan benefits for the years
then ended, in conformity with generally accepted accounting principles.
Our audits were conducted for the purpose of forming an opinion on the basic
financial statements taken as a whole. The supplemental schedules listed in the
table of contents are presented for the purpose of additional analysis and are
not a required part of the basic financial statements, but are supplementary
information required by the Department of Labor's Rules and Regulations for
Reporting and Disclosure under the Employee Retirement Income Security Act of
1974. The supplemental schedules are the responsibility of the Plan's
management. Such supplemental schedules have been subjected to the auditing
procedures applied in our audit of the basic financial statements and, in our
opinion, are fairly stated in all material respects when considered in relation
to the basic financial statements taken as a whole.
DELOITTE & TOUCHE LLP
/s/ DeLoitte & Touche LLP
Minneapolis, Minnesota
June 9, 1998
<PAGE>
MEDICAL GRAPHICS CORPORATION
401(k) SAVINGS PLAN
STATEMENTS OF NET ASSETS AVAILABLE FOR PLAN BENEFITS
DECEMBER 31, 1997 AND 1996
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
1997 1996
<S> <C> <C>
ASSETS:
Investments (Note 3):
KOPP Investment Portfolio $ 1,780,013
Guaranteed Interest Account $ 373,780 554,308
U.S. Stock Account 900,546
International Stock Account 252,293
Money Market Account 72,924
Bond Emphasis Balanced Account 70,323
Stock Index Account 25,941
Medium Company Blend Account 4,765
Bond and Mortgage Account 449
Medical Graphics Corporation Common Stock Fund 7,844 10,730
Stable Return Fund 504,137
Strategic Income Fund 108,599
Growth Balanced Fund 298,886
Diversified Equity Fund 662,462
Growth Equity Fund 407,435
Janus Worldwide Fund 682,135
Small Cap Opportunities Fund 535,459
Putnam OTC Emerging Growth Fund 59,956
Participant Loans 87,861 83,924
---------- ------------
NET ASSETS AVAILABLE FOR BENEFITS $3,728,554 $ 3,756,216
---------- ------------
---------- ------------
</TABLE>
See notes to financial statements.
2
<PAGE>
MEDICAL GRAPHICS CORPORATION
401(k) SAVINGS PLAN
<TABLE>
<CAPTION>
STATEMENTS OF CHANGES IN NET ASSETS AVAILABLE FOR PLAN BENEFITS
YEARS ENDED DECEMBER 31, 1997 AND 1996
- -------------------------------------------------------------------------------------
1997 1996
<S> <C> <C>
NET ASSETS AVAILABLE FOR PLAN BENEFITS AT
BEGINNING OF YEAR $3,756,216 $ 2,902,510
ADDITIONS:
Net investment income (Note 4) 468,402 382,460
Contributions:
Employer 12,002 43,172
Participant 369,910 326,632
Rollovers 120,691 383,540
Interest income from loan payments 37,688
---------- ------------
Total additions 971,005 1,173,492
DEDUCTIONS:
Distributions to participants 997,715 318,381
Administrative and loan expenses 952 1,405
---------- ------------
Total deductions 998,667 319,786
---------- ------------
NET (DEDUCTIONS) ADDITIONS (27,662) 853,706
---------- ------------
NET ASSETS AVAILABLE FOR PLAN BENEFITS
AT END OF YEAR $3,728,554 $ 3,756,216
---------- ------------
---------- ------------
</TABLE>
See notes to financial statements.
3
<PAGE>
MEDICAL GRAPHICS CORPORATION
401(k) SAVINGS PLAN
NOTES TO FINANCIAL STATEMENTS
YEARS ENDED DECEMBER 31, 1997 AND 1996
1. DESCRIPTION OF PLAN
The following description of the Medical Graphics Corporation 401(k)
Savings Plan (the Plan) provides only general information. Participants
should refer to the plan document for a more complete description of the
Plan's provisions.
GENERAL - The Plan is a defined contribution plan covering substantially
all employees of Medical Graphics Corporation (the Company) who have at
least six months of service and are age 21 or older. Medical Graphics
Corporation, as the plan administrator, controls and manages the operation
and administration of the Plan. Certain members of the Company's
management served as the trustees of the Plan through August 1997. As of
September 1997, Norwest Bank Minnesota, N.A. was appointed the trustee of
the Plan. Benefits are funded through a qualified trust and a group
annuity contract with Principal Mutual Life Insurance Company through
August 1997. As of September 1997, benefits are funded through Norwest
Bank Minnesota, N.A. During September 1997, all investments, except the
Guaranteed Interest Account, were transferred from Principal Mutual Life
Insurance to Norwest Bank Minnesota, N.A. The Plan is subject to the
provisions of the Employee Retirement Income Security Act of 1974 (ERISA).
CONTRIBUTIONS - Under the provisions of the Plan, a participant may
contribute up to 17% of pretax annual compensation to his/her participant
account up to the maximum amount determined by the Internal Revenue Service
(IRS). There is a provision in the Plan for matching and nonelective
employer discretionary contributions. The Company contributed 25% of the
first 6% of base compensation that a participant contributed to the Plan,
through February 9, 1997, at which time the Company discontinued the
matching contributions.
VESTING - Participants are immediately vested in their salary reduction
contributions plus earnings thereon. Vesting in the matching and
nonelective discretionary contribution portion of their accounts plus
actual earnings thereon is based on years of credited service. A
participant is 100% vested after three years of credited service, with
staggered vesting percentages prior to that time.
PARTICIPANT ACCOUNTS - Each participant's account is credited with the
participant's contributions and withdrawals, as applicable, and allocations
of (a) the Company's contributions and (b) plan earnings, and debited with
an allocation of administrative expenses. Allocations are based on
participant earnings, as defined. Forfeited balances of terminated
participants' nonvested accounts are used to reduce future Medical Graphics
Corporation contributions. The benefit to which a participant is entitled
is the benefit that can be provided from the participant's account.
INVESTMENT OPTIONS - For the period from January 1, 1996 through August 30,
1997, a participant may direct employee and employer contributions to
investment options as follows:
KOPP INVESTMENT PORTFOLIO - Funds are invested primarily in the common
stocks of emerging growth and large corporations.
4
<PAGE>
GUARANTEED INTEREST ACCOUNT - A guaranteed investment which invests
mostly in private placement bonds, commercial mortgages, and
residential mortgages.
U.S. STOCK ACCOUNT - A pooled investment account invested primarily in
common stocks of U.S. companies.
INTERNATIONAL STOCK ACCOUNT - A pooled investment account invested
primarily in common stocks of corporations located outside the United
States.
MONEY MARKET ACCOUNT - A pooled investment account which invests in
money market instruments.
BOND EMPHASIS BALANCED ACCOUNT - A pooled investment account invested
in other separate accounts of Principal Mutual Life Insurance Company,
weighted toward fixed income accounts.
STOCK INDEX ACCOUNT - A pooled investment account invested primarily
in common stocks of those firms included in the Standard & Poor's 500
Stock Index.
MEDIUM COMPANY BLEND ACCOUNT - A pooled investment account invested in
common stocks of medium-sized companies that generate long-term
capital growth.
BOND AND MORTGAGE ACCOUNT - A pooled investment account invested in
intermediate-term fixed-income loans.
MEDICAL GRAPHICS CORPORATION COMMON STOCK FUND - Funds are invested in
the common stock of Medical Graphics Corporation.
Effective September 1, 1997, a participant may direct employee and employer
contributions to investment options as follows:
STABLE RETURN FUND - A conservative fund option which invests in high
quality insurance contracts, bank investment contracts, and money
market instruments seeking to provide safety of principal and adequate
liquidity.
STRATEGIC INCOME FUND - Designated to provide consistent total return
with emphasis on principal protection and income, with a small amount
of equity exposure to enhance returns.
GROWTH BALANCED FUND - Designed to provide a combination of current
income and capital appreciation by diversifying investment of the
Fund's assets between stocks and intermediate maturity bonds. The
Fund holds more equity securities than the Strategic Income Fund.
DIVERSIFIED EQUITY FUND - Emphasizes long-term capital appreciation.
Annual return volatility is moderated through diversifying among five
complimentary equity styles.
GROWTH EQUITY FUND - Designed to reduce the volatility and risk of
investing in equity securities.
5
<PAGE>
JANUS WORLDWIDE FUND - Seeks long-term capital growth by investing
primarily in stocks of foreign and U.S. companies.
SMALL CAP OPPORTUNITIES FUND - An aggressive fund that invests in
small growth companies.
PUTNAM OTC EMERGING GROWTH FUND - Invests in mainly over the counter
stocks of small to midsize emerging growth companies.
Participants may change or transfer their investments options quarterly.
LOANS TO PARTICIPANTS - Participants may borrow from their fund accounts a
minimum of $1,000 with a maximum of 50% of their vested balance or $50,000,
whichever is less. Loan transactions are treated as a transfer between the
investment fund and the loan fund. Loan terms range from 1 to 5 years or
up to 25 years for the purchase of a primary residence. The loans are
secured by the balance in the participant's account and bear interest at a
rate commensurate with local prevailing rates as determined quarterly by
the plan administrator. Principal and interest is paid ratably through
monthly payroll deductions.
2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
VALUATION OF INVESTMENTS - The investments of the Plan, other than the
Guaranteed Interest Account, are stated at fair value based on closing
sales prices reported on recognized securities exchanges on the last
business day of the year, or for listed securities having no sales reported
and for unlisted securities, upon the last reported bid prices on that
date. The Guaranteed Interest Account is valued at contract value plus
annual interest. The mutual funds are valued at quoted market prices which
represent the net asset values of shares held by the Plan at year-end.
VALUATION OF LOANS TO PARTICIPANTS - The loans to participants are valued
at cost plus accrued interest which approximates fair value.
EXPENSES - The Plan's expenses are paid from the assets of the Plan and are
allocated to the participant's accounts.
6
<PAGE>
3. INVESTMENTS
The Plan's investments are held in a trust. The Plan conducts transactions
with parties-in-interest which include the Company; Principal Mutual Life
Insurance Co.; KOPP Investment; Norwest Bank Minnesota, N.A.; and the
participants of the Plan. The following assets represent individual
investments greater than 5% of the Plan's assets at December 31, 1997 and
1996:
<TABLE>
<CAPTION>
1997 1996
<S> <C> <C>
Principal Mutual Life Insurance Co.:
U.S. Stock Account $ 900,546
Guaranteed Interest Account $ 373,780 554,308
International Stock Account 252,293
Norwest Bank Minnesota, N.A.:
Stable Return Fund 504,137
Growth Balanced Fund 298,886
Diversified Equity Fund 662,462
Growth Equity Fund 407,435
Janus Worldwide Fund 682,135
Small Cap Opportunities Fund 535,459
</TABLE>
4. NET INVESTMENT INCOME
A summary of the Plan's investment income for the years ended December 31,
1997 and 1996 is as follows:
<TABLE>
<CAPTION>
1997 1996
<S> <C> <C>
Net appreciation in fair value of investments $ 419,691 $ 339,269
Interest 48,711 43,191
---------- ------------
$ 468,402 $ 382,460
---------- ------------
---------- ------------
</TABLE>
5. PLAN TERMINATION
Although it has not expressed any intention to do so, the Company has the
right under the Plan to terminate the Plan subject to the provisions set
forth in ERISA. In the event of any termination of the Plan, the accounts
of each affected participant shall become fully vested and distributed to
the respective participants.
6. INTERNAL REVENUE SERVICE STATUS
The Plan obtained its latest determination letter dated July 27, 1993, in
which the IRS stated that the Plan, as then designed, was in compliance
with the applicable requirements of the Internal Revenue Code (IRC). The
Plan has been amended since receiving this determination letter. effective
September 1997, the Plan is covered under the tax determination letter
dated November 23, 1992, according to the Plan's adoption of the
standardized plan #06 with Norwest Bank Minnesota, N.A. The Company
believes that the plan is currently designed and being operated in
compliance with the applicable requirements of the IRC. Therefore, no
provision for income taxes has been included in the Plan's financial
statements.
7
<PAGE>
7. STATEMENTS OF CHANGES IN NET ASSETS AVAILABLE FOR PLAN BENEFITS BY
TYPE OF FUND
<TABLE>
<CAPTION>
MEDIUM BOND
KOPP U.S. INTERNATIONAL COMPANY EMPHASIS
INVESTMENT STOCK STOCK BLEND BALANCED
PORTFOLIO ACCOUNT ACCOUNT ACCOUNT ACCOUNT
<S> <C> <C> <C> <C> <C>
NET ASSETS AVAILABLE
FOR PLAN BENEFITS
AS OF DECEMBER 31, 1995 $ 1,522,435 $ 492,637 $ 78,030 $ 51,408
ADDITIONS:
NET INVESTMENT INCOME 131,482 157,973 34,304 $ 669 6,220
CONTRIBUTIONS:
EMPLOYER 13,714 10,171 5,224 83 2,599
PARTICIPANT 103,776 84,540 33,388 546 11,851
ROLLOVERS 166,175 192,524 12,903 427
INTEREST INCOME FROM LOAN PAYMENTS 10,852 6,363 3,382 2,862
----------- ----------- ----------- ----------- -----------
TOTAL ADDITIONS 425,999 451,571 89,201 1,298 23,959
DEDUCTIONS:
DISTRIBUTION TO PARTICIPANTS 173,998 60,846 3,429 326
ADMINISTRATIVE AND LOAN EXPENSES 588 103 4 26
NEW LOANS 1,784 6,224
----------- ----------- ----------- ----------- -----------
TOTAL DEDUCTIONS 175,782 67,658 3,532 4 352
INTERFUND TRANSFERS 7,361 23,996 88,594 3,471 (4,692)
----------- ----------- ----------- ----------- -----------
NET ADDITIONS (DEDUCTIONS) 257,578 407,909 174,263 4,765 18,915
----------- ----------- ----------- ----------- -----------
NET ASSETS AVAILABLE FOR
PLAN BENEFITS AS OF
DECEMBER 31, 1996 1,780,013 900,546 252,293 4,765 70,323
ADDITIONS:
NET INVESTMENT INCOME 206,056 186,735 36,482 1,313 7,515
CONTRIBUTIONS:
EMPLOYER 3,466 3,748 1,679 22 534
PARTICIPANT 53,058 70,093 39,171 707 10,911
ROLLOVERS
INTEREST INCOME FROM LOAN PAYMENTS 11,550 31,088 4,213 1,197
----------- ----------- ----------- ----------- -----------
TOTAL ADDITIONS 274,130 291,664 81,545 2,042 20,157
DEDUCTIONS:
DISTRIBUTION TO PARTICIPANTS 140,336 485,649 30,313 5,733
ADMINISTRATIVE AND LOAN EXPENSES 457 126 1 40
NEW LOANS 42,091 5,950 3,950 950
----------- ----------- ----------- ----------- -----------
TOTAL DEDUCTIONS 182,427 492,056 34,389 1 6,723
INTERFUND TRANSFERS (1,871,716) (700,154) (299,449) (6,806) (83,757)
----------- ----------- ----------- ----------- -----------
NEW (DEDUCTIONS) ADDITIONS (1,780,013) (900,546) (252,293) (4,765) (70,323)
----------- ----------- ----------- ----------- -----------
NET ASSETS AVAILABLE FOR
PLAN BENEFITS AS OF
DECEMBER 31, 1997 $ - $ - $ - $ - $ -
----------- ----------- ----------- ----------- -----------
----------- ----------- ----------- ----------- -----------
<CAPTION>
MEDICAL
GRAPHICS
MONEY STOCK BOND AND GUARANTEED CORPORATION
MARKET INDEX MORTGAGE INTEREST COMMON
ACCOUNT ACCOUNT ACCOUNT ACCOUNT STOCK FUND
<S> <C> <C> <C> <C> <C>
NET ASSETS AVAILABLE
FOR PLAN BENEFITS
AS OF DECEMBER 31, 1995 $ 86,713 $ 13,606 $ 703 $ 574,579 $ 22,605
ADDITIONS:
NET INVESTMENT INCOME 4,187 4,414 20 32,532 4,326
CONTRIBUTIONS:
EMPLOYER 900 589 9,774 118
PARTICIPANT 8,106 3,351 80,349 725
ROLLOVERS 11,511
INTEREST INCOME FROM LOAN PAYMENTS 420 21,672
---------- ------------ ----------- ----------- -----------
TOTAL ADDITIONS 25,124 8,354 20 144,327 5,169
DEDUCTIONS:
DISTRIBUTION TO PARTICIPANTS 1,219 360 272 62,812 271
ADMINISTRATIVE AND LOAN EXPENSES 65 5 2 612
NEW LOANS 19,500 13,000
---------- ------------ ----------- ----------- -----------
TOTAL DEDUCTIONS 1,284 365 274 82,924 13,271
INTERFUND TRANSFERS (37,629) 4,346 (81,674) (3,773)
---------- ------------ ----------- ----------- -----------
NET ADDITIONS (DEDUCTIONS) (13,789) 12,335 (254) (20,271) (11,875)
---------- ------------ ----------- ----------- -----------
NET ASSETS AVAILABLE FOR
PLAN BENEFITS AS OF
DECEMBER 31, 1996 72,924 25,941 449 554,308 10,730
ADDITIONS:
NET INVESTMENT INCOME 5,160 4,802 25 29,631 (2,049)
CONTRIBUTIONS:
EMPLOYER 206 71 2,276
PARTICIPANT 3,827 804 222 34,078
ROLLOVERS
INTEREST INCOME FROM LOAN PAYMENTS 225 1,703
---------- ------------ ----------- ----------- -----------
TOTAL ADDITIONS 9,418 5,677 247 67,688 (2,049)
DEDUCTIONS:
DISTRIBUTION TO PARTICIPANTS 1,024 20,462 76 76,382 828
ADMINISTRATIVE AND LOAN EXPENSES 24 2 302
NEW LOANS 12,000
---------- ------------ ----------- ----------- -----------
TOTAL DEDUCTIONS 1,048 20,464 76 88,684 828
INTERFUND TRANSFERS (81,294) (11,154) (620) (159,532) (9)
---------- ------------ ----------- ----------- -----------
NEW (DEDUCTIONS) ADDITIONS (72,924) (25,941) (449) (180,528) (2,886)
---------- ------------ ----------- ----------- -----------
NET ASSETS AVAILABLE FOR
PLAN BENEFITS AS OF
DECEMBER 31, 1997 $ - $ - $ - $ 373,780 $ 7,844
---------- ------------ ----------- ----------- -----------
---------- ------------ ----------- ----------- -----------
<CAPTION>
STABLE STRATEGIC GROWTH DIVERSIFIED
PARTICIPANT RETURN INCOME BALANCED EQUITY
LOANS FUND FUND FUND FUND
<S> <C> <C> <C> <C> <C>
NET ASSETS AVAILABLE
FOR PLAN BENEFITS
AS OF DECEMBER 31, 1995 $ 59,794
ADDITIONS:
NET INVESTMENT INCOME 6,333
CONTRIBUTIONS:
EMPLOYER
PARTICIPANT
ROLLOVERS
INTEREST INCOME FROM LOAN PAYMENTS (7,863)
-----------
TOTAL ADDITIONS (1,530)
DEDUCTIONS:
DISTRIBUTION TO PARTICIPANTS 14,848
ADMINISTRATIVE AND LOAN EXPENSES
NEW LOANS (40,508)
-----------
TOTAL DEDUCTIONS (25,660)
INTERFUND TRANSFERS
-----------
NET ADDITIONS (DEDUCTIONS) 24,130
-----------
NET ASSETS AVAILABLE FOR
PLAN BENEFITS AS OF
DECEMBER 31, 1996 83,924
ADDITIONS:
NET INVESTMENT INCOME $ 13,895 $ 3,905 $ 9,456 $ 17,087
CONTRIBUTIONS:
EMPLOYER
PARTICIPANT 12,442 8,007 15,651 28,499
ROLLOVERS 6,312 6,233 79 15,599
INTEREST INCOME FROM LOAN PAYMENTS (57,992) 346 348 362 4,096
----------- ----------- ----------- ----------- -----------
TOTAL ADDITIONS (57,992) 32,995 18,493 25,548 65,281
DEDUCTIONS:
DISTRIBUTION TO PARTICIPANTS 3,012 232,690
ADMINISTRATIVE AND LOAN EXPENSES
NEW LOANS (64,941)
----------- ----------- ----------- ----------- -----------
TOTAL DEDUCTIONS (61,929) 232,690
INTERFUND TRANSFERS 703,832 90,106 273,338 597,181
----------- ----------- ----------- ----------- -----------
NEW (DEDUCTIONS) ADDITIONS 3,937 504,137 108,599 298,886 662,462
----------- ----------- ----------- ----------- -----------
NET ASSETS AVAILABLE FOR
PLAN BENEFITS AS OF
DECEMBER 31, 1997 $ 87,861 $ 504,137 $ 108,599 $ 298,886 $ 662,462
----------- ----------- ----------- ----------- -----------
----------- ----------- ----------- ----------- -----------
<CAPTION>
PUTNAM
SMALL OTC
GROWTH JANUS CAP EMERGING
EQUITY WORLDWIDE OPPORTUNITIES GROWTH
FUND FUND FUND FUND TOTAL
<S> <C> <C> <C> <C> <C>
NET ASSETS AVAILABLE
FOR PLAN BENEFITS
AS OF DECEMBER 31, 1995 $2,902,510
ADDITIONS:
NET INVESTMENT INCOME 382,460
CONTRIBUTIONS:
EMPLOYER 43,172
PARTICIPANT 326,632
ROLLOVERS 383,540
INTEREST INCOME FROM LOAN PAYMENTS 37,688
-----------
TOTAL ADDITIONS 1,173,492
DEDUCTIONS:
DISTRIBUTION TO PARTICIPANTS 318,381
ADMINISTRATIVE AND LOAN EXPENSES 1,405
NEW LOANS
-----------
TOTAL DEDUCTIONS 319,786
INTERFUND TRANSFERS
-----------
NET ADDITIONS (DEDUCTIONS) 853,706
-----------
NET ASSETS AVAILABLE FOR
PLAN BENEFITS AS OF
DECEMBER 31, 1996 3,756,216
ADDITIONS:
NET INVESTMENT INCOME $ (693) $ (46,183) $ (3,661) $ (1,074) 468,402
CONTRIBUTIONS:
EMPLOYER 12,002
PARTICIPANT 27,061 35,583 23,820 5,976 369,910
ROLLOVERS 6,153 43,157 43,158 120,691
INTEREST INCOME FROM LOAN PAYMENTS 1,216 917 564 167
----------- ----------- ----------- ----------- -----------
TOTAL ADDITIONS 33,737 33,474 63,881 5,069 971,005
DEDUCTIONS:
DISTRIBUTION TO PARTICIPANTS 905 305 997,715
ADMINISTRATIVE AND LOAN EXPENSES 952
NEW LOANS
----------- ----------- ----------- ----------- -----------
TOTAL DEDUCTIONS 905 305 998,667
INTERFUND TRANSFERS 374,603 648,661 471,578 55,192
----------- ----------- ----------- ----------- -----------
NEW (DEDUCTIONS) ADDITIONS 407,435 682,135 535,459 59,956 (27,662)
----------- ----------- ----------- ----------- -----------
NET ASSETS AVAILABLE FOR
PLAN BENEFITS AS OF
DECEMBER 31, 1997 $ 407,435 $ 682,135 $ 535,459 $ 59,956 $ 3,728,554
----------- ----------- ----------- ----------- -----------
----------- ----------- ----------- ----------- -----------
</TABLE>
8
<PAGE>
SUPPLEMENTAL SCHEDULES FURNISHED PURSUANT TO THE
REQUIREMENTS OF FORM 5500
9
<PAGE>
MEDICAL GRAPHICS CORPORATION
401(k) SAVINGS PLAN
ITEM 27a - SCHEDULE OF ASSETS HELD FOR INVESTMENT PURPOSES
DECEMBER 31, 1997
<TABLE>
<CAPTION>
FAIR
ISSUE SHARES COST VALUE
<S> <C> <C> <C>
INVESTMENTS:
The Principal Mutual Life Insurance Company (1) -
Guaranteed Interest Account $ 373,780 $ 373,780
Norwest Bank Minnesota, N.A. (1):
Stable Return Fund 20,094 494,759 504,137
Strategic Income Fund 5,823 112,979 108,599
Growth Balanced Fund 11,616 310,173 298,886
Diversified Equity Fund 17,274 690,037 662,462
Growth Equity Fund 12,701 450,053 407,435
Janus Worldwide Fund 18,055 730,272 682,135
Small Cap Opportunities Fund 23,926 552,953 535,459
Putnam OTC Emerging Growth Fund 3,722 61,226 59,956
Medical Graphics Corporation Common Stock Fund (1) 1,743 10,996 7,844
----------- -----------
3,787,228 3,640,693
Participant Loans (1) (2) 87,861 87,861
----------- -----------
$ 3,875,089 $ 3,728,554
----------- -----------
----------- -----------
</TABLE>
(1) Known to be a party-in-interest.
(2) Participant loans include interest rates from 6.80% to 14.98% with
maturities at various dates through April 2002.
10
<PAGE>
MEDICAL GRAPHICS CORPORATION
401(k) SAVINGS PLAN
ITEM 27d - SCHEDULE OF REPORTABLE TRANSACTIONS
YEAR ENDED DECEMBER 31, 1997
<TABLE>
<CAPTION>
Party Involved and Description Number of Purchase Selling
of Transactions Transactions Price Price
<S> <C> <C> <C>
Series of Transactions:
Stable Return Fund: (1)
Purchases 26 $ 2,425,042
Sales 4 $ 1,933,454
Janus Worldwide Fund - (1)
Purchases 26 730,272
Small Cap Opportunities Fund - (1)
Purchases 28 552,953
Growth Balanced Fund - (1)
Purchases 28 310,173
Growth Equity Fund: (1)
Purchases 28 450,950
Sales 2 905
Diversified Equity Fund - (1)
Purchases 29 690,037
Guaranteed Interest Account: (1)
Purchases 50 83,570
Sales 48 294,367
Money Market Account: (1)
Purchases 41 195,004
Sales 11 273,087
U.S. Stock Account: (1)
Purchases 54 337,529
Sales 42 1,424,815
International Stock Account: (1)
Purchases 51 108,415
Sales 33 397,234
Kopp Investment Portfolio: (1)
Purchases 51 94,828
Sales 31 2,080,336
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(1) Known to be a party-in-interest.
11
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