UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 10-Q
[X] QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d)
OF THE SECURITIES EXCHANGE ACT OF 1934
For the Quarterly Period Ended September 30, 2000
OR
[ ] TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d)
OF THE SECURITIES EXCHANGE ACT OF 1934
For the Transition Period From _________________To _________________
Commission File Number 2-18868
KNAPE & VOGT MANUFACTURING COMPANY
(Exact name of registrant as specified in its charter)
Michigan 38-0722920
(State of Incorporation) (IRS Employer Identification No.)
2700 Oak Industrial Drive, NE
Grand Rapids, Michigan 49505
(Address of principal executive offices) (Zip Code)
(616) 459-3311
(Telephone Number)
Indicate by check mark whether the registrant (1) has filed all reports required
to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during
the preceding 12 months (or for such shorter period that the registrant was
required to file such reports), and (2) has been subject to such filing
requirements for the past 90 days.
YES __X__ NO ______
2,257,361 common shares were outstanding as of October 27, 2000.
2,359,778 Class B common shares were outstanding as of October 27, 2000.
The Exhibit Index appears on page 14.
<PAGE>
KNAPE & VOGT MANUFACTURING COMPANY AND SUBSIDIARIES
INDEX
Page No.
PART I. FINANCIAL INFORMATION
Item 1. Financial Statements.
Condensed Consolidated Balance Sheets
--September 30, 2000 and July 1, 2000.............................2
Condensed Consolidated Statements of Income
--Three Months Ended September 30, 2000 and October 2, 1999.......3
Condensed Consolidated Statements of Cash Flows
--Three Months Ended September 30, 2000 and October 2, 1999.......4
Notes to Condensed Consolidated Financial Statements............5-7
Item 2. Management's Discussion and Analysis of Financial
Condition and Results of Operations............................8-10
Item 3. Quantitative and Qualitative Disclosures About Market Risk.......11
PART II. OTHER INFORMATION
Item 6. Exhibits and Reports on Form 8-K.................................12
SIGNATURES....................................................................13
EXHIBIT INDEX ................................................................14
1
<PAGE>
KNAPE & VOGT MANUFACTURING COMPANY AND SUBSIDIARIES
PART I. FINANCIAL INFORMATION
CONDENSED CONSOLIDATED BALANCE SHEETS
<TABLE>
(Unaudited) (Audited)
Sept. 30, 2000 July 1, 2000
-------------------- -----------------
Assets
<S> <C> <C>
Current assets
Cash and equivalents $ 2,213,185 $ 2,351,622
Accounts receivable - net 18,820,466 20,631,951
Inventories 16,672,564 15,092,393
Prepaid expenses and other 3,067,661 3,133,098
------------------- ----------------
Total current assets 40,773,876 41,209,064
------------------- ----------------
Property, plant and equipment 76,181,490 73,632,488
Less accumulated depreciation 36,668,374 35,270,625
------------------- ----------------
Net property, plant and equipment 39,513,116 38,361,863
------------------- ----------------
Goodwill 4,896,401 4,978,420
Other assets 4,055,595 3,738,305
------------------- ----------------
$ 89,238,988 $ 88,287,652
=================== ================
Liabilities and Stockholders' Equity
Current liabilities
Accounts payable $ 11,973,262 $ 12,833,665
Other accrued liabilities 11,461,140 11,997,006
------------------- ----------------
Total current liabilities 23,434,402 24,830,671
------------------- ----------------
Long-term debt 20,570,000 20,050,000
Deferred income taxes and other long-term liabilities 8,863,515 8,700,351
------------------- ----------------
Total liabilities 52,867,917 53,581,022
------------------- ----------------
Stockholders' Equity
Common stock (Common - 2,227,581 and 2,222,852 shares issued, Class B common -
2,388,095 and 2,392,853 shares issued,
Preferred - unissued) 9,231,352 9,231,410
Additional paid-in capital 8,480,730 8,482,908
Unearned stock grant (94,500) (94,500)
Accumulated other comprehensive income:
Foreign currency translation adjustment (72,289) (39,172)
Derivative adjustment 244,019 -
Minimum supplemental executive retirement plan
liability adjustment (1,129,818) (1,130,405)
Retained earnings 19,711,577 18,256,389
------------------- ----------------
Total stockholders' equity 36,371,071 34,706,630
------------------- ----------------
$ 89,238,988 $ 88,287,652
=================== ================
</TABLE>
See accompanying notes.
2
<PAGE>
KNAPE & VOGT MANUFACTURING COMPANY AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF INCOME
(Unaudited)
<TABLE>
Three Months Ended
------------------
Sept. 30, 2000 Oct. 2, 1999
---------------- ----------------
<S> <C> <C>
Net sales $ 36,957,550 $ 35,687,624
Cost of sales 26,383,824 26,294,114
----------------- -----------------
Gross profit 10,573,726 9,393,510
Selling and administrative expenses 6,766,146 5,897,749
----------------- -----------------
Operating income 3,807,580 3,495,761
Other expenses (income) 436,685 317,949
----------------- -----------------
Income before income taxes 3,370,895 3,177,812
Income taxes 1,190,000 1,133,000
----------------- -----------------
Net income $ 2,180,895 $ 2,044,812
================= =================
Basic earnings per share:
Net income per share $ 0.47 $ 0.43
================= =================
Weighted average shares outstanding 4,615,000 4,720,283
Diluted earnings per share:
Net income per share $ 0.47 $ 0.43
================= =================
Weighted average shares outstanding 4,619,016 4,725,952
Cash dividend - common stock $ .165 $ .15
Cash dividend - Class B common stock $ .15 $ .136
</TABLE>
See accompanying notes.
3
<PAGE>
KNAPE & VOGT MANUFACTURING COMPANY AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited)
<TABLE>
Three Months Ended
------------------
Sept. 30, 2000 Oct. 2, 1999
------------------- -------------------
<S> <C> <C>
Operating Activities:
Net income $ 2,180,895 $ 2,044,812
Non-cash items:
Depreciation and amortization 1,538,556 1,410,100
Deferred income taxes (70,000) (65,000)
Other long-term liabilities 100,932 98,778
Changes in operating assets and liabilities:
Accounts receivable 1 ,787,816 (406,632)
Inventories (1,580,171) 951,778
Other current assets 63,185 44,114
Accounts payable and accrued expenses (1,721,769) 1,139,374
---------------- ---------------
Net cash provided by operating activities 2,299,444 5,217,324
---------------- ---------------
Investing Activities:
Additions to property, plant and equipment (2,195,587) (1,947,282)
Net cash paid for acquisition - (5,267,877)
Payments for other non-current assets (1,059) 120,001
---------------- ---------------
Net cash provided by (used for) investing activities (2,196,646) (7,095,158)
---------------- ---------------
Financing Activities:
Cash dividends paid (725,707) (672,671)
Proceeds from issuance of common stock 3,903 180,999
Repurchase and retirement of common stock (20,537) (806,992)
Borrowings on long-term debt 14,790,000 6,550,000
Payments on long-term debt (14,270,000) (3,200,000)
---------------- ---------------
Net cash provided by (used for) financing activities (222,341) 2,051,336
---------------- ---------------
Effect of Exchange Rate Changes on Cash (18,894) 2,075
---------------- ---------------
Net Increase in Cash and Equivalents (138,437) 175,577
Cash and equivalents, beginning of year 2,351,622 1,621,002
---------------- ---------------
Cash and equivalents, end of period $ 2,213,185 $ 1,796,579
================ ===============
Cash Paid During the Period - interest $ 372,418 $ 314,987
- income taxes $ 285,000 $ 10,000
</TABLE>
See accompanying notes.
4
<PAGE>
KNAPE & VOGT MANUFACTURING COMPANY AND SUBSIDIARIES
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(Unaudited)
Note 1 - Basis of Financial Statement Preparation
The accompanying unaudited condensed consolidated financial statements and
related notes have been prepared pursuant to the rules and regulations of the
Securities and Exchange Commission. The information furnished reflects all
adjustments, which are, in the opinion of management, necessary for a fair
statement of the results of operations and consist of only normal recurring
adjustments. Interim results are not necessarily indicative of the results for
the year-end and are subject to year-end adjustments, and audit by independent
public accountants. The balance sheet at July 1, 2000, has been taken from the
audited financial statements at that date. The condensed consolidated financial
statements and notes should be read in conjunction with the Company's 2000
annual report.
Effective July 1, 1999, the Company adopted a 52- or 53-week fiscal year,
changing the year-end date from June 30 to the Saturday nearest the end of June.
Certain prior year information has been reclassified to conform to the current
year presentation.
Note 2 - Common Stock and Per Share Information
Common stock is $2 par - shares authorized 6,000,000 of common stock and
4,000,000 of Class B common stock.
The following table reconciles the numerators and denominators used in the
calculations of basic and diluted EPS for each of the periods presented:
<TABLE>
Sept. 30, 2000 Oct. 2, 1999
------------------- ------------------
<S> <C> <C>
Numerators:
Numerator for both basic and
diluted EPS, net income $2,180,895 $2,044,812
=================== ==================
Denominators:
Denominator for basic EPS,
weighted-average common shares
outstanding 4,615,000 4,720,283
Potentially dilutive shares
resulting from stock option plans 4,016 5,669
------------------- ------------------
Denominator for diluted EPS 4,619,016 4,725,952
=================== ==================
</TABLE>
The following exercisable stock options were not included in the computation of
diluted EPS because the option prices were greater than average quarterly market
prices.
<TABLE>
Sept. 30, 2000 Oct. 2, 1999
------------------- ------------------
<S> <C> <C>
Exercise Price
$16.74 11,192 11,495
$18.18 10,450 11,000
</TABLE>
5
<PAGE>
Note 3 - Inventories
Inventories are valued at the lower of FIFO (first-in, first-out) cost or
market. Inventories are summarized as follows:
<TABLE>
Sept. 30, 2000 July 1, 2000
-------------- ------------
<S> <C> <C>
Finished products $ 10,797,897 $ 8,778,556
Work in process 2,262,154 2,339,958
Raw materials 3,612,513 3,973,879
-------------- ---------------
Total $ 16,672,564 $ 15,092,393
============== ===============
</TABLE>
Note 4 - Adoption of New Accounting Standard
The Company adopted Statement of Financial Accounting Standards No. 133,
"Accounting for Derivative Instruments and Hedging Activities," on July 2, 2000.
The Company uses an interest-rate swap to convert a portion of its variable-rate
revolver to a fixed rate. The resulting cost of funds is lower than it would
have been had fixed-rate borrowings been issued directly. The level of
fixed-rate debt, after the effects of interest-rate swaps have been considered,
is between 85 and 95 percent of the Company's total outstanding debt of
$20,570,000 at September 30, 2000 and $20,050,000 at July 1, 2000.
In accordance with the transition provisions of FAS 133, the Company recorded a
net-of-tax cumulative-effect-type adjustment in accumulated other comprehensive
income to recognize the fair value of the interest-rate swap designated as a
cash-flow hedging instrument. The derivative was also recognized on the balance
sheet at its fair value of $375,019.
The Company has formally documented the relationship between the interest-rate
swap and the revolver, as well as its risk-management objective and strategy for
undertaking the hedge transaction. This process includes linking the derivative
that has been designated as a cash-flow hedge to the specific liability on the
balance sheet. The Company also formally assesses, both at the hedge's inception
and on an ongoing basis, whether the derivative used in the hedging transaction
is highly effective in offsetting changes in the cash flows of the hedged item.
If it is determined that the derivative is not highly effective as a hedge or
that it has ceased to be a highly effective hedge, the Company will discontinue
hedge accounting prospectively.
Note 5 - Comprehensive Income
Comprehensive income is comprised of net income and all changes to stockholders'
equity, except those due to investments by owners and distributions to owners.
Comprehensive income and its components consist of the following:
<TABLE>
Three months ended Sept. 30, 2000 Oct. 2, 1999
-----------------------------------------------------------------------------------
<S> <C> <C>
Net income $ 2,180,895 $ 2,044,812
Other comprehensive income:
Foreign currency translation adjustment (33,287) (1,016)
Derivative adjustment 244,019 -
Minimum SERP liability adjustment 757 68
----------------- ----------------
Comprehensive income $ 2,392,384 $ 2,043,864
================= ================
</TABLE>
6
<PAGE>
Note 6 - Assets Held for Sale
During fiscal 2000, the Company offered its former powder coat facility for
sale. As a result of this decision, the related assets of $1,779,405 were
transferred to the category "Net Assets Held for Sale" and a loss of $105,000
was recorded in the fourth quarter of fiscal 2000. In July 2000, management
entered into a Buy/Sell agreement for the facility and anticipates closing the
sale during fiscal 2001. The loss was determined based upon this Buy/Sell
agreement.
Note 7 - Acquisition
On October 1, 1999, the Company acquired substantially all of the assets of Idea
Industries, Inc. (Idea). Idea designed, manufactured and marketed ergonomic
products, including adjustable keyboard mechanisms, keyboard and computer mouse
platforms, wrist rests and CPU holders. The acquisition was recorded using the
purchase method of accounting. Accordingly, the purchase price was allocated to
the assets acquired and liabilities assumed, based on the estimated fair values
at the date of the acquisition. The cost of the acquisition in excess of net
identifiable assets acquired has been recorded as goodwill and is being
amortized on a straight-line basis over 15 years.
The terms of the Idea acquisition agreement provide for additional consideration
to be paid if Idea's sales exceed certain targeted levels. The maximum amount of
contingent consideration is $550,000 payable through 2001. In calendar year
1999, the additional consideration payment was $41,797, which has been included
in goodwill. Any additional consideration paid will be recorded as goodwill when
payment is made.
The results of the acquisition were not material to the Company's consolidated
operating results, therefore pro forma financial statements have not been
prepared.
Note 8 - Restricted Stock and Performance-Option Plan
On February 1, 2000, William Dutmers, Chairman of the Board, President and Chief
Executive Officer of Knape & Vogt, was granted 6,600 shares of restricted common
stock and the option to purchase an additional 27,500 shares of the Company's
common stock at a price of $14.43 per share. The grant and the options will vest
if the Company achieves specific financial objectives within a five-year
performance period. During the performance period, the grantee may vote and
receive dividends on the restricted shares, but the shares are subject to
transfer restrictions and are forfeited if the grantee terminates employment or
the Company does not achieve its financial objectives.
Note 9 - Stock Repurchase
On September 1, 1998, the Company announced its intention to purchase up to
1,320,000 shares of the Company's common stock pursuant to a Dutch Auction
self-tender offer at a price range of $17.27 to $20 per share. The Board of
Directors also approved the purchase in the open market or in privately
negotiated transactions, following the completion of the Dutch Auction, of
shares of common stock in an amount which when added to the number of shares of
common stock purchased in the Dutch Auction would equal 1,485,000. The Dutch
Auction was concluded on October 7, 1998, with the purchase of 1,353,862 shares
at a price of $19.09 per share.
At each of the January 22, 1999 and the August 20, 1999 Board of Directors
meetings, the Board approved an additional 440,000 shares for the stock
repurchase program. Utilizing these Board authorizations, the Company has
purchased 635,150 shares through the first quarter of fiscal 2001 for
approximately $9.3 million with the price per share ranging from approximately
$12 to $17.
7
<PAGE>
KNAPE & VOGT MANUFACTURING COMPANY AND SUBSIDIARIES
MANAGEMENT'S DISCUSSION AND ANALYSIS OF
FINANCIAL CONDITION AND RESULTS OF OPERATIONS
Certain matters discussed in this section include forward-looking statements
involving risks and uncertainties. When used in this document, the words
"believes," "expects," "anticipates," "goal," "think," " forecast," "project,"
and similar expressions identify forward-looking statements. Forward-looking
statements include, but are not limited to, statements concerning future revenue
and net income growth. Such statements are subject to certain risks and
uncertainties, which would cause actual results to differ materially from those
expressed or implied by such forward-looking statements. Readers are cautioned
not to place undue reliance on those forward-looking statements that speak only
as of the date of this report.
RESULTS OF OPERATIONS
Net Sales
The following table indicates the Company's sales (in millions) and percentage
of total sales by product category for the three-month periods ended:
<TABLE>
Three Months Ended
------------------
Sept. 30, Oct. 2,
2000 % 1999 %
------------------------ ------------------------
<S> <C> <C> <C> <C>
Shelving systems $10.6 28.8% $12.3 34.5%
Drawer slides 17.1 46.3% 16.9 47.3%
Hardware 9.3 24.9% 6.5 18.2%
------------------------ ------------------------
Total $37.0 100.0% $35.7 100.0%
======================== ========================
</TABLE>
Net sales for the first quarter of fiscal 2001 were $37.0 million compared to
$35.7 million for the same period in the prior year. The decline in shelving
systems reflects the loss of shelving sales to a large retailer. The retail
market continues to be extremely competitive and the Company must evaluate the
profitability of the customers in this market. Drawer slide sales improved
slightly over the prior year. The Company experienced double-digit growth in its
precision drawer slide sales, which was offset by lower sales of its utility
slides. The significant increase in hardware primarily represents sales of the
Company's products.
Gross Profit
Gross profit, as a percentage of net sales, was 28.6% for the first quarter of
fiscal 2001 compared to 26.3% for the same period in the prior year. The
increase in gross profit during the first quarter of fiscal 2001 reflects the
improvements achieved through the Company's focus on lean manufacturing combined
with capital investments made to increase capacity and productivity.
Operating Expenses
Selling and administrative expenses, as a percentage of net sales, for the first
quarter ended September 30, 2000, were 18.3% compared to 16.5% in the same
period in the prior year. The increase from the prior year was due to the higher
operating costs associated with the ergonomic product line coupled with the
Company's continued investment to launch its new products into the market.
8
<PAGE>
KNAPE & VOGT MANUFACTURING COMPANY AND SUBSIDIARIES
MANAGEMENT'S DISCUSSION AND ANALYSIS OF
FINANCIAL CONDITION AND RESULTS OF OPERATIONS
(Continued)
Other Expenses/(Income)
Interest expense was $381,393 for the first quarter of fiscal 2001, compared to
$326,348 for the same period in the prior year. The increase in interest
expense was attributable to the higher level of borrowings combined with higher
interest rates during the first quarter of fiscal 2001.
Other miscellaneous expense was $55,292 for the first quarter of fiscal 2001,
compared to other miscellaneous income of $8,399 in the prior year. The expense
in fiscal 2001 reflects the loss incurred on the disposal of certain
manufacturing assets.
Income Taxes
The effective tax rate for the quarter ended September 30, 2000, was 35.3%
compared with the rate of 35.7% for the same period in the prior year.
Net Income
For the quarter ended September 30, 2000, net income was $2,180,895 or $0.47 per
diluted share compared to $2,044,812 or $0.43 per diluted share for the first
quarter of last year. The increase in net income in the first quarter of fiscal
2001 was attributable to the higher sales volume coupled with gross margin
improvement.
Liquidity and Capital Resources
Net cash from operating activities for the first three months provided
$2,299,444 as compared to $5,217,324 for the first three months of fiscal 2000.
The higher level of working capital negatively impacted cash flows during the
quarter. Specifically, inventory levels increased due to higher levels of
imported product and accounts payable decreased due to timing of the quarter-end
cutoff.
Capital expenditures totaled $2,195,587 for the three months ended September 30,
2000, compared to $1,947,282 for the three months ended October 2, 1999. The
increased capital spending reflects investments in manufacturing technology, the
completion of the new facility at the Indiana subsidiary and tooling for new
products. There were no significant capital expenditure commitments at September
30, 2000. Capital expenditures are anticipated to remain at or slightly below
the same level as in the first quarter.
On October 1, 1999, the Company acquired substantially all of the assets of Idea
Industries, Inc. ("Idea") for a purchase price of $5,267,877. Idea designed,
manufactured and marketed ergonomic office products, including adjustable
keyboard mechanisms, keyboard and computer mouse platforms, wrist rests and CPU
holders. The acquisition was recorded using the purchase method of accounting.
Accordingly, the purchase price was allocated to the assets acquired and
liabilities assumed, based on the estimated fair values at the date of the
acquisition. The cost of the acquisition in excess of net identifiable assets
acquired has been recorded as goodwill and is being amortized on a straight-line
basis over 15 years.
The terms of the Idea acquisition agreement provide for additional consideration
to be paid if Idea's sales exceed certain targeted levels. The maximum amount of
contingent consideration is $550,000 payable through 2001. In calendar year
1999, the additional consideration payment was $41,797, which has been included
in goodwill. Any additional consideration paid will be recorded as goodwill when
payment is made.
9
<PAGE>
KNAPE & VOGT MANUFACTURING COMPANY AND SUBSIDIARIES
MANAGEMENT'S DISCUSSION AND ANALYSIS OF
FINANCIAL CONDITION AND RESULTS OF OPERATIONS
(Continued)
On September 1, 1998, the Company announced its intention to purchase up to
1,320,000 shares of the Company's common stock pursuant to a Dutch Auction
self-tender offer at a price range of $17.27 to $20 per share. The Board of
Directors also approved the purchase in the open market or in privately
negotiated transactions, following the completion of the Dutch Auction, of
shares of common stock in an amount which when added to the number of shares of
common stock purchased in the Dutch Auction would equal 1,485,000. The Dutch
Auction was concluded on October 7, 1998, with the purchase of 1,353,862 shares
at a price of $19.09 per share.
At each of the January 22, 1999 and the August 20, 1999 Board of Directors
meetings, the Board approved an additional 440,000 shares for the stock
repurchase program. Utilizing these Board authorizations, the Company has
purchased 635,150 shares through the first quarter of fiscal 2001 for
approximately $9.3 million with the price per share ranging from approximately
$12 to $17. Since the beginning of the stock repurchase program in fiscal 1999,
the Company has purchased 1,989,012 shares for approximately $35.7 million.
The long-term debt balance increased to $20,570,000 at September 30, 2000,
compared to $20,050,000 at July 1, 2000 and $21,050,000 at October 2, 1999. The
increase from July 1, 2000 reflects funds utilized for capital expenditures. The
decrease from the October 2, 1999, balance reflects funds utilized for capital
expenditures and stock repurchases, offset by net income earned during the
period.
Anticipated cash flows from operations and available balances on the revolving
credit line are expected to be adequate to fund working capital, capital
expenditures and dividend payments.
Year 2000
As of the date of this report, the Company has not experienced any Year 2000
issues arising from its systems or those of its material vendors and suppliers.
To the extent that there may be any ongoing Year 2000 issues that might arise at
a later date, the Company has contingency plans in place to address such issues.
10
<PAGE>
KNAPE & VOGT MANUFACTURING COMPANY AND SUBSIDIARIES
QUANTITATIVE AND QUALITATIVE DISCLOSURES
ABOUT MARKET RISK
The Company is exposed to market risks, which include changes in the foreign
currency exchange rate as measured against the U.S. dollar and changes in U.S.
interest rates. The Company holds a derivative instrument in the form of an
interest rate swap, which is viewed as a risk management tool and is not used
for trading or speculative purposes. The intent of the interest rate swap is to
effectively fix the interest rate on part of the borrowings under the Company's
variable rate revolving credit agreement.
Quantitative disclosures relating to financial instruments and debt are included
in the tables below.
The following table provides information on the Company's fixed maturity
investments as of September 30, 2000 that are sensitive to changes in interest
rates. The table also presents the corresponding interest rate swap on this
debt. Since the interest rate swap effectively fixes the interest rate on the
notional amount of debt, changes in interest rates have no current effect on the
interest expense recorded by the Company on the portion of the debt covered by
the interest rate swap.
<TABLE>
Liability Amount Maturity Date
--------- ------ -------------
<S> <C> <C>
Variable rate revolving credit
agreement $45 million November 1, 2004
First $20,000,000 at an interest rate
of 6.68% plus weighted average
credit spread of .5%
Amounts in excess of $20,000,000 have
an interest rate of approximately 7.2%
Interest Rate Swap
Notional amount $20 million June 1, 2006
Pay fixed/Receive variable - 6.68%
Pay fixed interest rate - 6.25%
</TABLE>
The Company has a sales office located in Canada. Sales are typically
denominated in Canadian dollars, thereby creating exposures to changes in
exchange rates. The changes in the Canadian/U.S. exchange rate may positively or
negatively affect the Company's sales, gross margins and retained earnings. The
Company attempts to minimize currency exposure through working capital
management. The Company does not hedge its exposure to translation gains and
losses relating to foreign currency net asset exposures.
11
<PAGE>
KNAPE & VOGT MANUFACTURING COMPANY AND SUBSIDIARIES
PART II. OTHER INFORMATION
Item 6. Exhibits and Reports on Form 8-K
(a) Exhibits
See Exhibit Index
(b) Reports on Form 8-K
There were no reports on Form 8-K filed for the three months
ended September 30, 2000.
12
<PAGE>
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the
registrant has duly caused this report to be signed on its behalf by the
undersigned thereunto duly authorized.
Knape & Vogt Manufacturing Company
(Registrant)
Date: November 3, 2000 /s/ William R. Dutmers
William R. Dutmers
Chairman, President and
Chief Executive Officer
Date: November 3, 2000 /s/ Leslie J. Cummings
Leslie J. Cummings
Vice President of Finance and
Treasurer
13
<PAGE>
EXHIBIT INDEX
(27) Financial Data Schedule
14
