<PAGE> 1
INDEX OF EXHIBITS PAGE __ OF __
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, DC 20549
FORM 11-K
(Mark One)
(X) ANNUAL REPORT PURSUANT TO SECTION 15 (d) OF THE SECURITIES
EXCHANGE ACT OF 1934
For the fiscal year ended DECEMBER 31, 1997.
OR
( ) TRANSITION REPORT PURSUANT TO SECTION 15 (d) OF THE
SECURITIES EXCHANGE ACT OF 1934
For the transition period from to
------------------------------- ---------------
Commission file number:
A. Full title of the plan and the address of the plan, if different from
that of the issuer named below:
Met-Coil Retirement Plan
B. Name of issuer of the securities held pursuant to the plan and the
address of its principal executive office:
Met-Coil Systems Corporation
5486 6th Street SW
Cedar Rapids, IA 52404
<PAGE> 2
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, DC 20549
FORM 11-K
REQUIRED INFORMATION
(a) Financial Statements. Filed as part of this Report on Form 11-K are the
financial statements and the schedules thereto of the Met-Coil Retirement
Plan as required by Form 11-K together with the report thereon of Deloitte
& Touche LLP, independent auditors, dated July 13, 1998, and McGladrey &
Pullen, LLP, independent auditors, dated June 26, 1998.
(b) Exhibits: A consent of Deloitte & Touche LLP is being filed as Exhibit
23.1 to this Report.
(c) Exhibits: A consent of McGladrey & Pullen, LLP is being filed as
Exhibit 23.2 to this report.
<PAGE> 3
CONTENTS
<TABLE>
<S> <C>
- -------------------------------------------------------------------------------
INDEPENDENT AUDITOR'S REPORT 1
- -------------------------------------------------------------------------------
FINANCIAL STATEMENTS
Statements of net assets available for benefits
(with fund information) 2 - 5
Statements of changes in net assets available
for benefits (with fund information) 6 - 9
Notes to financial statements 10 - 14
- -------------------------------------------------------------------------------
SCHEDULES
Item 27a - Schedule of assets held for investment purposes 15
Item 27d - Schedule of reportable transactions 16
- -------------------------------------------------------------------------------
</TABLE>
<PAGE> 4
INDEPENDENT AUDITOR'S REPORT
To the Plan Administrator
Met-Coil Retirement Plan
Cedar Rapids, Iowa
We have audited the accompanying statement of net assets available for benefits
of Met-Coil Retirement Plan as of December 31, 1997, and the related statement
of changes in net assets available for benefits for the year 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 audit.
We conducted our audit in accordance with generally accepted auditing
standards. Those standards require that we plan and perform the audit to
obtain reasonable assurance about 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 audit provides a reasonable basis
for our opinion.
In our opinion, the financial statements referred to above present fairly, in
all material respects, the net assets available for benefits of Met-Coil
Retirement Plan as of December 31, 1997, and the changes in net assets
available for benefits for the year then ended in conformity with generally
accepted accounting principles.
Our audit was made for the purpose of forming an opinion on the basic financial
statements taken as a whole. The supplemental schedules of (1) assets held for
investment and (2) reportable transactions as of and for the year ended
December 31, 1997 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 fund information in the statements of net assets available for
benefits and changes in net assets available for benefits is presented for
purposes of additional analysis rather than to present the net assets available
and changes in net assets available of each fund. The supplemental schedules
and fund information have been subjected to the auditing procedures applied in
the audit of the basic financial statements and, in our opinion, are fairly
stated in all material respects in relation to the basic financial statements
taken as a whole.
McGLADREY & PULLEN, LLP
Cedar Rapids, Iowa
June 26, 1998
1
<PAGE> 5
OPINION PAGE
DELOITTE & TOUCHE
[DELOITTE & TOUCHE LLP LETTERHEAD]
INDEPENDENT AUDITORS' REPORT
To the Plan Administrator
Met-Coil Retirement Plan:
We have audited the accompanying statement of net assets available for benefits
of the Met-Coil Retirement Plan (the "Plan") as of December 31, 1996, and the
related statement of changes in net assets available for benefits for the year
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 audit.
We conducted our audit in accordance with generally accepted auditing
standards. Those standards require that we plan and perform the audit to obtain
reasonable assurance about 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 audit provides a reasonable basis
for our opinion.
In our opinion, such financial statements present fairly, in all material
respects, the net assets available for benefits of the Plan as of December 31,
1996, and the changes in net assets available for benefits for the year then
ended in conformity with generally accepted accounting principles.
Our audit was conducted for the purpose of forming an opinion on the basic
financial statements taken as a whole. The supplemental information by fund is
presented for the purpose of additional analysis of the basic financial
statements rather than to present information regarding the net assets
available for benefits and changes in net assets available for benefits of the
individual funds, and is not a required part of the basic financial statements.
The supplemental information by fund is the responsibility of the Plan's
management. Such supplemental information by fund has been subjected to the
auditing procedures applied in our audit of the basic financial statements and,
in our opinion, is fairly stated in all material respects when considered in
relation to the basic financial statements taken as a whole.
/s/ Deloitte & Touche LLP
May 23, 1997
<PAGE> 6
MET-COIL RETIREMENT PLAN
STATEMENT OF NET ASSETS AVAILABLE FOR BENEFITS
(WITH FUND INFORMATION)
DECEMBER 31, 1997
<TABLE>
<CAPTION>
----------------------------------------------
LARGE CAP
INTERNATIONAL VALUE
BALANCED EQUITY EQUITY
FUND FUND FUND
- -------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
ASSETS
Investments:
Investments at fair value (Note 3) $ 2,463,284 $ 118,877 $ 713,274
Loans to participants (Note 2) - - -
----------------------------------------------
TOTAL INVESTMENTS 2,463,284 118,877 713,274
----------------------------------------------
Receivables:
Employer contributions 102,357 - -
Participants' contributions 13,397 2,330 6,407
----------------------------------------------
TOTAL RECEIVABLES 115,754 2,330 6,407
----------------------------------------------
2,579,038 121,207 719,681
LIABILITIES - - -
----------------------------------------------
NET ASSETS AVAILABLE FOR BENEFITS $ 2,579,038 $ 121,207 $ 719,681
==============================================
</TABLE>
See Notes to Financial Statements.
2
<PAGE> 7
<TABLE>
<CAPTION>
- --------------------------------------------------------------------------------
MET-COIL
LARGE CAP SMALL CAP SYSTEMS
GROWTH GROWTH STABLE CORPORATION
EQUITY EQUITY VALUE PARTICIPANT COMMON
FUND FUND FUND LOANS STOCK TOTAL
- ------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
$ 1,273,355 $ 1,116,682 $ 2,895,280 $ - $ 745,849 $ 9,326,601
- - - 88,783 - 88,783
- ------------------------------------------------------------------------------------------------
1,273,355 1,116,682 2,895,280 88,783 745,849 9,415,384
- ------------------------------------------------------------------------------------------------
- - - - - 102,357
12,815 14,562 8,737 - - 58,248
- ------------------------------------------------------------------------------------------------
12,815 14,562 8,737 - - 160,605
- ------------------------------------------------------------------------------------------------
1,286,170 1,131,244 2,904,017 88,783 745,849 9,575,989
- - - - - -
- ------------------------------------------------------------------------------------------------
$ 1,286,170 $ 1,131,244 $ 2,904,017 $ 88,783 $ 745,849 $ 9,575,989
================================================================================================
</TABLE>
3
<PAGE> 8
MET-COIL RETIREMENT PLAN
STATEMENT OF NET ASSETS AVAILABLE FOR BENEFITS
(WITH FUND INFORMATION)
DECEMBER 31, 1996
<TABLE>
<CAPTION>
Large Cap
International Value
Balanced Equity Equity
Fund Fund Fund
- ------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
ASSETS
Investments:
Investments at fair value (Note 3) $ 1,787,282 $ 121,972 $ 369,685
Loans to participants (Note 2) - - -
---------------------------------------------
TOTAL INVESTMENTS 1,787,282 121,972 369,685
---------------------------------------------
Receivables:
Employer contributions 79,480 - -
Participants' contributions 11,068 8,429 5,293
---------------------------------------------
TOTAL RECEIVABLES 90,548 8,429 5,293
---------------------------------------------
1,877,830 130,401 374,978
LIABILITIES - - -
---------------------------------------------
NET ASSETS AVAILABLE FOR BENEFITS $ 1,877,830 $ 130,401 $ 374,978
=============================================
</TABLE>
See Notes to Financial Statements.
4
<PAGE> 9
<TABLE>
<CAPTION>
Met-Coil
Large Cap Small Cap Systems
Growth Growth Stable Corporation
Equity Equity Value Participant Common
Fund Fund Fund Loans Stock Total
- ------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
$ 1,017,268 $ 935,901 $ 3,134,306 $ - $ 382,008 $ 7,748,422
- - - 127,222 - 127,222
- ------------------------------------------------------------------------------------------------
1,017,268 935,901 3,134,306 127,222 382,008 7,875,644
- ------------------------------------------------------------------------------------------------
- - - - - 79,480
9,143 12,511 4,096 - - 50,540
- ------------------------------------------------------------------------------------------------
9,143 12,511 4,096 - - 130,020
- ------------------------------------------------------------------------------------------------
1,026,411 948,412 3,138,402 127,222 382,008 8,005,664
- - - - - -
- ------------------------------------------------------------------------------------------------
$ 1,026,411 $ 948,412 $ 3,138,402 $ 127,222 $ 382,008 $ 8,005,664
================================================================================================
</TABLE>
5
<PAGE> 10
MET-COIL RETIREMENT PLAN
STATEMENT OF CHANGES IN NET ASSETS AVAILABLE FOR BENEFITS
(WITH FUND INFORMATION)
YEAR ENDED DECEMBER 31, 1997
<TABLE>
<CAPTION>
LARGE CAP
INTERNATIONAL VALUE
BALANCED EQUITY EQUITY
FUND FUND FUND
- -------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
Investment income:
Interest and dividends, net of fund administrative
expenses $ 49,063 $ 2,146 $ 32,038
Net appreciation in fair value
of investments (Note 3) 327,452 2,581 102,105
----------------------------------------------
TOTAL INVESTMENT INCOME 376,515 4,727 134,143
----------------------------------------------
Contributions:
Employer 379,872 - -
Participants 149,282 25,410 82,953
----------------------------------------------
TOTAL CONTRIBUTIONS 529,154 25,410 82,953
----------------------------------------------
Benefits paid to participants 273,801 21,687 9,699
Excess contributions refunded 10,971 824 3,890
----------------------------------------------
284,772 22,511 13,589
----------------------------------------------
TOTAL INCREASE (DECREASE) PRIOR TO
INTERFUND TRANSFERS 620,897 7,626 203,507
Transfer of assets due to participant elections, net 80,311 (16,820) 141,196
----------------------------------------------
INCREASE (DECREASE) IN NET ASSETS
AVAILABLE FOR BENEFITS 701,208 (9,194) 344,703
Net assets available for benefits:
Beginning of year 1,877,830 130,401 374,978
----------------------------------------------
End of year $ 2,579,038 $ 121,207 $ 719,681
==============================================
</TABLE>
See Notes to Financial Statements.
6
<PAGE> 11
<TABLE>
<CAPTION>
MET-COIL
LARGE CAP SMALL CAP SYSTEMS
GROWTH GROWTH STABLE CORPORATION
EQUITY EQUITY VALUE PARTICIPANT COMMON
FUND FUND FUND LOANS STOCK TOTAL
- ------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
$ 9,495 $ 6,258 $ (3,463) $ 5,718 $ 16,658 $ 117,913
280,280 79,887 173,753 - 372,746 1,338,804
- ------------------------------------------------------------------------------------------------
289,775 86,145 170,290 5,718 389,404 1,456,717
- ------------------------------------------------------------------------------------------------
- - - - - 379,872
148,089 177,716 105,410 - - 688,860
- ------------------------------------------------------------------------------------------------
148,089 177,716 105,410 - - 1,068,732
- ------------------------------------------------------------------------------------------------
150,260 23,267 413,213 - 25,089 917,016
6,492 6,185 9,746 - - 38,108
- ------------------------------------------------------------------------------------------------
156,752 29,452 422,959 - 25,089 955,124
- ------------------------------------------------------------------------------------------------
281,112 234,409 (147,259) 5,718 364,315 1,570,325
(21,353) (51,577) (87,126) (44,157) (474) -
- ------------------------------------------------------------------------------------------------
259,759 182,832 (234,385) (38,439) 363,841 1,570,325
1,026,411 948,412 3,138,402 127,222 382,008 8,005,664
- ------------------------------------------------------------------------------------------------
$ 1,286,170 $ 1,131,244 $ 2,904,017 $ 88,783 $ 745,849 $ 9,575,989
================================================================================================
</TABLE>
7
<PAGE> 12
MET-COIL RETIREMENT PLAN
STATEMENT OF CHANGES IN NET ASSETS AVAILABLE FOR BENEFITS
(WITH FUND INFORMATION)
YEAR ENDED DECEMBER 31, 1996
<TABLE>
<CAPTION>
Large Cap
International Value
Balanced Equity Equity
Fund Fund Fund
- --------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
Investment income:
Interest and dividends, net of fund administrative
expenses $ 28,750 $ 380 $ 6,840
Net appreciation (depreciation) in fair value
of investments (Note 3) 189,732 4,765 49,925
-----------------------------------------------
TOTAL INVESTMENT INCOME 218,482 5,145 56,765
-----------------------------------------------
Contributions:
Employer 317,740 - -
Participants 145,056 38,281 61,947
-----------------------------------------------
TOTAL CONTRIBUTIONS 462,796 38,281 61,947
-----------------------------------------------
Benefits paid to participants (Note 4) 357,124 38,503 28,399
-----------------------------------------------
TOTAL INCREASE (DECREASE) PRIOR TO
INTERFUND TRANSFERS 324,154 4,923 90,313
Other:
Transfer of assets due to participant elections, net 59,814 7,317 8,099
Disbursements of participant loans (12,190) (4,200) (2,700)
Repayments of participant loans 8,518 3,124 7,113
-----------------------------------------------
INCREASE (DECREASE) IN NET ASSETS
AVAILABLE FOR BENEFITS 380,296 11,164 102,825
Net assets available for benefits:
Beginning of year 1,497,534 119,237 272,153
-----------------------------------------------
End of year $ 1,877,830 $ 130,401 $ 374,978
===============================================
</TABLE>
See Notes to Financial Statements.
8
<PAGE> 13
<TABLE>
<CAPTION>
Met-Coil
Large Cap Small Cap Systems
Growth Growth Stable Corporation
Equity Equity Value Participant Common
Fund Fund Fund Loans Stock Total
- ------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
$ (2,532) $ (6,896) $ 83,198 $ 6,404 $ 1,210 $ 117,354
157,026 122,377 101,564 - 217,170 842,559
- ------------------------------------------------------------------------------------------------
154,494 115,481 184,762 6,404 218,380 959,913
- ------------------------------------------------------------------------------------------------
- - - - (20,268) 297,472
112,856 152,877 96,880 - - 607,897
- ------------------------------------------------------------------------------------------------
112,856 152,877 96,880 - (20,268) 905,369
- ------------------------------------------------------------------------------------------------
81,867 72,849 699,546 32,080 218,012 1,528,380
- ------------------------------------------------------------------------------------------------
185,483 195,509 (417,904) (25,676) (19,900) 336,902
91,079 179,766 (346,075) - - -
(13,200) (5,200) (17,349) 54,839 - -
7,404 17,291 6,050 (49,500) - -
- ------------------------------------------------------------------------------------------------
270,766 387,366 (775,278) (20,337) (19,900) 336,902
755,645 561,046 3,913,680 147,559 401,908 7,668,762
- ------------------------------------------------------------------------------------------------
$ 1,026,411 $ 948,412 $ 3,138,402 $ 127,222 $ 382,008 $ 8,005,664
================================================================================================
</TABLE>
9
<PAGE> 14
MET-COIL RETIREMENT PLAN
NOTES TO FINANCIAL STATEMENTS
- --------------------------------------------------------------------------------
NOTE 1. SIGNIFICANT ACCOUNTING POLICIES
Basis of accounting: The accompanying financial statements of the Plan are
prepared on the accrual basis.
Valuation of investments: Investments in corporate common stocks are stated at
fair value based on closing sales prices reported on recognized securities
exchanges on the last business day of the year. Mutual funds are valued at
quoted market prices which represent the net asset values of shares held by the
Plan at year end. Quoted market prices are used to value the underlying assets
of the collective trust accounts. The amounts presented represent the Plan's
share of these collective accounts. Participant loans are valued at cost plus
accrued interest, which approximates fair value.
Accounting estimates: The preparation of financial statements in conformity
with generally accepted accounting principles requires plan management to make
estimates and assumptions that affect the reported value of assets and
liabilities at the date of the financial statements and the reported amounts of
additions and deductions during the reporting period. Actual results could
differ from those estimates.
Payment of benefits: Benefit payments to participant are recorded when paid.
NOTE 2. PLAN DESCRIPTION
The following description of the Met-Coil Retirement 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 of
the employees of Met-Coil Systems Corporation and subsidiaries (the "Company")
who have completed six months of service and are age 21 or older. The Plan is
subject to the provisions of the Employee Retirement Income Security Act of
1974 ("ERISA").
Contributions: Participants may contribute up to 15% of their annual wages
before bonuses and commissions. Participants may change their contribution
percentage at the end of any calendar quarter and also for the seven-day period
following receipt of their quarterly contribution statement.
The Company contributes to the Plan an amount equal to 2% of eligible employee
compensation. In addition, the Company matches 100% of the first 3% of
compensation contributed as an elective deferral by a participant. The Company
makes no contributions for the Lockformer Company bargaining unit employees.
Iowa Precision Industries, Inc. bargaining unit employees receive employer
contributions, as specified in the Collective Bargaining Agreement. Additional
amounts may be contributed at the discretion of the Company's Board of
Directors.
10
<PAGE> 15
MET-COIL RETIREMENT PLAN
NOTES TO FINANCIAL STATEMENTS
- --------------------------------------------------------------------------------
NOTE 2. PLAN DESCRIPTION (CONTINUED)
Employee contributions are invested in accordance with instructions of the
participants. Prior to January 1, 1996, employer contributions were used to
purchase Company stock; after January 1, 1996, employer contributions are
invested in the Balanced Fund.
Participant accounts: Each participant's account is credited with the
participant's contributions and, where applicable, an allocation of (a) the
Company's contribution and (b) plan earnings. Allocations are based on
participant earnings or account balances, as defined. The benefit to which a
participant is entitled is the benefit that can be provided from the
participant's account.
Vesting: Participants are immediately vested in their voluntary contributions
plus actual earnings thereon. Vesting in the remainder of their accounts is
based on years of continuous service. A participant is 100% vested after six
years of credited service. Nonvested amounts are forfeited upon termination
and are used to fund the employer contribution.
Investment options: Upon enrollment in the Plan, a participant may direct
employee contributions in 10% increments to any one or more of the following
funds:
Balanced Fund: The fund invests primarily in large capitalization,
high-quality common stocks and in fixed income senior securities rated within
the first four highest categories established by Moody's Investors Service or
Standard & Poor's Corporation.
International Equity Fund: The fund invests primarily in equity securities of
companies domiciled outside the United States.
Large Cap Value Equity Fund: The fund invests primarily in common stock of
issuers with total market capitalization of $1 billion or greater at the time
of purchase.
Large Cap Growth Equity Fund: The fund invests primarily in common stock of
issurers with total market capitalization of $1 billion or greater at the time
of purchase.
Small Cap Growth Equity Fund: The fund invests primarily in common stocks of
companies with total market capitalization less than $1 billion at the time of
purchase.
Stable Value Fund: The fund has two portfolios of investment contracts issued
by high quality life insurance and investment companies; one collective trust
fund is managed by Firstar Trust Co. and the other is managed by Smith Barney
Corporate Trust Co. The fund may also invest in units of other guaranteed
investment contract collective funds.
11
<PAGE> 16
MET-COIL RETIREMENT PLAN
NOTES TO FINANCIAL STATEMENTS
- --------------------------------------------------------------------------------
NOTE 2. PLAN DESCRIPTION (CONTINUED)
Loans to participants: Participants may borrow from their fund accounts a
minimum of $1,000 up to a maximum of the lesser of $50,000 or 50 percent of
their vested account balance. Loan transactions are treated as a transfer
between the investment funds designated by the participant and the loan
account. Loan terms range from 1 to 5 years. The loans are secured by the
balance in the participant's account and bear interest at the prime rate at the
date of the loan, plus 1%. Principal and interest is paid through payroll
deductions.
Payment of benefits: Upon termination of service, a participant receives a
lump-sum amount equal to the value of his or her account.
Administrative costs: Certain administrative costs of the Plan are paid by the
Company and are not reflected in the financial statements of the Plan.
Administrative costs paid by the Plan are reported as a reduction of investment
income.
NOTE 3. INVESTMENTS
Individual investments that represent 5% or more of the Plan's net assets are
identified as follows:
<TABLE>
<CAPTION>
1997 1996
-----------------------------
<S> <C> <C>
CG Capital Markets Funds:
Balanced Investments $ 2,463,284 $ 1,787,282
Large Cap Value Investments 713,274 369,685
Large Cap Growth Investments 1,273,355 1,017,268
Small Cap Growth Investments 1,116,682 935,901
Met-Coil Systems Corporation common stock 745,849 382,008
Firstar Employee Benefit Stable Asset Fund 1,090,553 1,411,436
Smith Barney Corporate Trust Co., Capital Preservation Fund 1,804,727 1,722,870
Others 207,660 249,194
-----------------------------
$ 9,415,384 $ 7,875,644
=============================
</TABLE>
12
<PAGE> 17
MET-COIL RETIREMENT PLAN
NOTES TO FINANCIAL STATEMENTS
- --------------------------------------------------------------------------------
NOTE 3. INVESTMENTS (CONTINUED)
During 1997 and 1996, the Plan's investments (including investments bought,
sold and held during the year) appreciated in value by $1,338,804 and $842,559,
respectively.
<TABLE>
<CAPTION>
1997 1996
---------------------------
<S> <C> <C>
Net change in fair value for the year ended December 31:
Investments at fair value as determined by quoted market price:
Mutual funds $ 792,305 $ 523,825
Collective trust accounts 173,753 101,564
Corporate common stock 372,746 217,170
---------------------------
$ 1,338,804 $ 842,559
===========================
</TABLE>
NOTE 4. BENEFIT PAYMENTS
In February 1996, the Company sold its Rowe Machinery & Automation subsidiary.
During May 1996, $901,856 was transferred to the new employer's retirement plan
in a trust-to-trust transfer. In addition, approximately 65,000 shares of the
Company's common stock were liquidated and funds were transferred to the new
employer's retirement plan.
NOTE 5. PLAN AMENDMENTS
On October 23, 1997 the Plan was amended, to be effective March 31, 1996, to
allow for employee participation in the Plan on the first day of the calendar
quarter following the employee's completion of six months of employment.
Employer contributions will commence upon the employee's completion of one year
of service.
NOTE 6. TRANSACTIONS WITH PARTIES-IN-INTEREST
At December 31, 1997 and 1996, the Plan held 253,863 shares and 265,652 shares
of common stock of Met-Coil Systems Corporation, a sponsoring employer, with a
cost basis of $700,662 and $732,859, respectively. During the years ended
December 31, 1997 and 1996, the Plan recorded total investment income of
$389,404 and $218,380 from the Met-Coil Systems Corporation common stock.
13
<PAGE> 18
MET-COIL RETIREMENT PLAN
NOTES TO FINANCIAL STATEMENTS
- --------------------------------------------------------------------------------
NOTE 7. PLAN TERMINATION
Although it has not expressed any intent to do so, the Company has the right
under the Plan to discontinue its contributions at any time and to terminate
the Plan subject to the provisions set forth in ERISA. In the event of plan
termination, participants will become 100% vested in their accounts and the
trust will continue in effect until all net assets are distributed in
accordance with the provisions of the Plan.
NOTE 8. TAX STATUS
The Internal Revenue Service has determined and informed the Company by a
letter dated August 15, 1995, that the Plan and related trust are designed in
accordance with applicable sections of the Internal Revenue Code (IRC). The
Plan has been amended since receiving the determination letter. However, the
Plan management believes that the Plan is designed and is currently being
operated in compliance with the applicable requirements of the IRC.
14
<PAGE> 19
MET-COIL RETIREMENT PLAN
ITEM 27a - SCHEDULE OF ASSETS HELD FOR INVESTMENT PURPOSES
DECEMBER 31, 1997
<TABLE>
<CAPTION>
Number Of
Description Shares Cost Fair Value
- ----------------------------------------------------------------------------------------------
<S> <C> <C> <C>
CG Capital Markets Funds:
Balanced Investments 207,347 $ 2,127,303 $ 2,463,284
International Equity Investments 11,911 124,325 118,877
Large Cap Value Investments 53,710 669,860 713,274
Large Cap Growth Investments 74,903 1,023,451 1,273,355
Small Cap Growth Investments 65,998 1,128,004 1,116,682
Met-Coil Systems Corporation common stock* 253,863 700,662 745,849
Firstar Employee Benefit Stable Asset Fund 46,805 901,271 1,090,553
Smith Barney Corporate Trust Co. 129,947 1,522,462 1,804,727
Capital Preservation Fund
Participant loans* N/A 88,783 88,783
---------------------------
TOTAL INVESTMENTS $ 8,286,121 $ 9,415,384
===========================
</TABLE>
* Indicates a party-in-interest to the Plan.
15
<PAGE> 20
MET-COIL RETIREMENT PLAN
ITEM 27d - SCHEDULE OF REPORTABLE TRANSACTIONS
YEAR ENDED DECEMBER 31, 1997
TRANSACTIONS INVOLVING MORE THAN 5 PERCENT OF THE BEGINNING NET ASSETS
<TABLE>
<CAPTION>
Total Total
Number Total Number Total
Of Purchase Of Selling Net Gain
Description of Assets Purchases Price Sales Price (Loss)
- -------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
CG Capital Markets Balanced
Fund 45 $ 799,639 11 $ 122,676 $ 73,981
CG Capital Markets Large
Cap Growth Fund 25 288,644 24 242,336 74,620
CG Capital Markets Small
Cap Growth 18 292,236 25 180,280 (4,343)
</TABLE>
16
<PAGE> 21
MET-COIL RETIREMENT PLAN
FORM 11-K
SIGNATURES
The Plan. Pursuant to the requirements of the Securities Exchange Act of
1934, the Trustees have duly caused this annual report to be signed on its
behalf by the undersigned hereunto duly authorized.
MET-COIL RETIREMENT PLAN
Date: July 8, 1998 By: /s/ Katie M. Michael
--------------------------
Katie M. Michael
Trustee/Plan Administrator
<PAGE> 22
MET-COIL RETIREMENT PLAN
FORM 11-K
EXHIBIT INDEX
<TABLE>
<CAPTION>
Exhibit Page
Number Exhibit Number
- ------- ----------------------------------- ------
<S> <C> <C>
23.1 Consent of Deloitte & Touche, LLP. 25
23.2 Consent of McGladrey & Pullen, LLP. 26
</TABLE>
<PAGE> 1
EXHIBIT 23.1
INDEPENDENT AUDITORS' CONSENT
We consent to the incorporation by reference in Registration Statement No.
33-72138 of Met-Coil Systems Corporation on Form S-8 of our report dated May
23, 1997, appearing in this Annual Report on Form 11-K of Met-Coil Retirement
Plan for the year ended December 31, 1996.
/s/ DELOITTE & TOUCHE LLP
Cedar Rapids, Iowa
July 13, 1998
<PAGE> 1
EXHIBIT 23.2
INDEPENDENT AUDITORS' CONSENT
We Consent to the incorporation by reference in Registration Statement No.
33-72138 of Met-Coil Systems Corporation on Form S-8 of our report dated June
26, 1998, appearing in this Annual Report on Form 11-K of Met-Coil Retirement
Plan for the year ended December 31, 1997.
/s/ MCGLADREY & PULLEN, LLP
Cedar Rapids, Iowa
July 13, 1998
