<PAGE>
================================================================================
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
--------------------
FORM 11-K
[X] ANNUAL REPORT PURSUANT TO SECTION 15(d) OF THE SECURITIES EXCHANGE ACT OF
1934
FOR THE FISCAL YEAR ENDED MARCH 31, 1998
OR
[_] TRANSITION REPORT PURSUANT TO SECTION 15(d) OF THE SECURITIES EXCHANGE ACT
OF 1934
For the transition period from _________________ to __________________
Commission File Number 0-20287
NU-KOTE INTERNATIONAL, INC. EMPLOYEES SAVINGS PLAN
(Full title of the Plan)
NU-KOTE HOLDING, INC.
(Exact name of issuer as specified in its charter)
200 BEASLEY DRIVE, FRANKLIN, TENNESSEE 37064
(Address of principal executive offices) (Zip Code)
Registrant's telephone number, including area code: (615)794-9000
--------------------
================================================================================
<PAGE>
REQUIRED INFORMATION
Item 1. Not applicable.
Item 2. Not applicable.
Item 3. Not applicable.
Item 4. Plan financial statements and schedules prepared in accordance with the
financial reporting requirements of ERISA have been included as Exhibit
1 hereto.
EXHIBITS
1. Audited financial statements for the Nu-kote International, Inc. Employees
Savings Plan including statements of net assets available for plan benefits
as of March 31, 1998 and 1997 and related statements of changes in net
assets available for plan benefits for the years then ended, together with
notes and schedules thereto.
23. Consent of PricewaterhouseCoopers L.L.P.
2.
<PAGE>
SIGNATURES
THE PLAN. Pursuant to the requirements of the Securities Exchange Act of
1934, the Nu-kote International, Inc. Employees Savings Plan has
duly caused this annual report to be signed on its behalf by the
undersigned thereunto duly authorized, in the City of Franklin,
State of Tennessee, on the 13th day of October, 1998.
Nu-kote International, Inc.
Employees Savings Plan
BY: /s/ Phillip L. Theodore
------------------------
Phillip L. Theodore
Chief Financial Officer,
Treasurer, Senior Vice President,
Assistant Secretary
3.
<PAGE>
EXHIBIT 1
NU-KOTE INTERNATIONAL, INC.
EMPLOYEES SAVINGS PLAN
FINANCIAL STATEMENTS
AND SUPPLEMENTAL SCHEDULES
WITH REPORT OF INDEPENDENT ACCOUNTANTS
for the years ended March 31, 1998 and 1997
<PAGE>
I N D E X
<TABLE>
<CAPTION>
Pages
-----
<S> <C>
Report of Independent Accountants 2
Financial Statements:
Statements of Net Assets Available for Benefits, March 31, 1998 and 1997 3
Statements of Changes in Net Assets Available for Benefits for the years
ended March 31, 1998 and 1997 4
Notes to Financial Statements 5-15
Supplemental Schedules:
Item 27a--Schedule of Assets Held for Investment Purposes, March 31, 1998 16
Item 27b--Schedule of Loans or Fixed Income Obligations, March 31, 1998 17
Item 27d--Schedule of Reportable Transactions for the year ended March 31, 1998 18
</TABLE>
1
<PAGE>
REPORT OF INDEPENDENT ACCOUNTANTS
To the Plan Participants and Administrator
of the Nu-kote International, Inc.
Employees Savings Plan:
We have audited the accompanying statements of net assets available for benefits
of the Nu-kote International, Inc. Employees Savings Plan (the "Plan") as of
March 31, 1998 and 1997, and the related statements of changes in net assets
available for benefits for the years then ended. These financial statements are
the responsibility of the Plan's administrator. 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 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 audits provide 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 the Nu-kote
International, Inc. Employees Savings Plan as of March 31, 1998 and 1997, and
the changes in net assets available for benefits for the years 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 Schedule of Assets Held for
Investment Purposes at March 31, 1998, the Schedule of Loans or Fixed Income
Obligations at March 31, 1998 and Schedule of Reportable Transactions for the
year then ended 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 have been subjected to the auditing procedures
applied in the audits 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.
PricewaterhouseCoopers LLP
Dallas, Texas
October 13, 1998
2
<PAGE>
NU-KOTE INTERNATIONAL, INC. EMPLOYEES SAVINGS PLAN
STATEMENTS OF NET ASSETS AVAILABLE FOR BENEFITS
March 31, 1998 and 1997
<TABLE>
<CAPTION>
ASSETS 1998 1997
------------ -----------
<S> <C> <C>
Investments at fair value:
Investment funds $ 8,230,369 $ 7,002,750
Nu-kote stock fund 145,798 420,175
Participant loans 184,377 302,198
------------ -----------
Total investments 8,560,544 7,725,123
Receivables:
Employee contributions 44,584 70,695
Employer contributions 32,246 25,853
------------ -----------
Total assets 8,637,374 7,821,671
------------ -----------
LIABILITIES
Administrative fees payable 15,203 15,000
Excess contributions refundable 47,270 60,159
------------ -----------
Total liabilities 62,473 75,159
------------ -----------
Net assets available for benefits $8,574,901 $7,746,512
============ ===========
</TABLE>
The accompanying notes are an integral part of the financial statements.
3
<PAGE>
NU-KOTE INTERNATIONAL, INC. EMPLOYEES SAVINGS PLAN
STATEMENTS OF CHANGES IN NET ASSETS
AVAILABLE FOR BENEFITS
for the years ended March 31, 1998 and 1997
<TABLE>
<CAPTION>
1998 1997
----------- -----------
<S> <C> <C>
Additions:
Employee contributions (net of refunds of $47,270 in 1998 and
$60,159 in 1997) $ 702,346 $ 919,085
Employer contributions 293,286 363,692
Rollover contributions 4,371 48,366
Net appreciation in fair value of investment funds 2,173,072 675,500
Net depreciation in fair value of Nu-kote stock fund (584,232) (1,321,383)
Interest income 13,787 19,330
---------- -----------
Total additions 2,602,630 704,590
---------- -----------
Deductions:
Benefits paid to participants 1,750,060 944,785
Administrative expenses 24,181 63,450
---------- -----------
Total deductions 1,774,241 1,008,235
---------- -----------
Net increase (decrease) 828,389 (303,645)
Net assets available for benefits:
Beginning of year 7,746,512 8,050,157
---------- -----------
End of year $8,574,901 $7,746,512
========== ===========
</TABLE>
The accompanying notes are an integral part of the financial statements.
4
<PAGE>
NU-KOTE INTERNATIONAL, INC. EMPLOYEES SAVINGS PLAN
NOTES TO FINANCIAL STATEMENTS
1. DESCRIPTION OF THE PLAN:
General
Nu-kote International, Inc. (the "Company" or "Employer"), is a wholly-
owned subsidiary of Nu-kote Holding, Inc. ("Nu-kote"). The Nu-kote
International, Inc. Employees Savings Plan (the "Plan") is a defined
contribution plan that became effective January 16, 1987. The Plan is
subject to the provisions of the Employee Retirement Income Security Act of
1974 ("ERISA"). The following description of the Plan is provided for
general information purposes. Participants should refer to the Plan
document for more complete information.
Participation
All U.S. domestic employees of the Company are eligible for participation
in the Plan at the next entry date after the completion of one year of
service.
Effective January 1, 1998, the Plan allows participants to contribute an
aggregate amount up to 15% of their base salary on a before-tax basis, not
to exceed the legal maximum amount. Contributions made in excess of the
legal maximum amount are refunded to participants. The Company will match,
out of its current year's earnings, up to 40% of the first 6% of each
participant's wages contributed. Prior to January 1, 1998, participants
were allowed to contribute an aggregate amount equal to 1% to 6% of their
base salary on a before-tax basis.
Effective January 1, 1998, the Plan participants are allowed to direct the
investment of their contributions into ten funds offered by Scudder Trust
Company (the "Trustee"). The participant has the option to invest, in
multiples of 1%, in the following funds: a stable value fund, an income
fund, a pathway balanced portfolio, a pathway conservative portfolio, a
pathway growth portfolio, a stock index fund, an international fund, value
fund, cash investment trust fund and a Nu-kote stock fund. Prior to January
1, 1998, participants had the option to direct the investment of their
contributions into five funds offered by NationsBank (Trustee prior to
January 1, 1998). The Funds were a stable capital fund, a strategic fixed
income fund, a capital growth fund, a Nu-kote stock fund, and an equity
index fund. Earnings for each investment program are allocated based on
participant's daily balances within that investment program.
5
<PAGE>
NU-KOTE INTERNATIONAL, INC. EMPLOYEES SAVINGS PLAN
NOTES TO FINANCIAL STATEMENTS, Continued
Vesting
Employee contributions vest immediately. Employer contributions vest based
on completed years of service. A participant fully vests with five years of
credited service (20% per year of service). Participants who terminate due
to death, normal retirement or disability are fully vested.
Upon termination of employment, the participants' nonvested benefits are
forfeited and are used to reinstate forfeitures for certain re-employed
participants and to reduce matching contributions of the Company.
Forfeitures for the years ended March 31, 1998 and 1997 were $5,180 and
$2,874, respectively.
Benefits
Participants (or their beneficiaries) are eligible to receive vested
benefits upon retirement, death, disability or when they terminate
employment with the Company. If benefits are greater than $3,500, the
participants may choose to leave their balance in the Plan, elect payment
as a single lump-sum payment or receive their benefits in the form of an
annuity.
Participant Loans
Participants, after receiving approval from the Plan administrator, are
allowed to obtain a loan from the Plan based on 50% of the value of his or
her vested amount in the Plan, up to a maximum of $50,000. The minimum loan
available is $1,000. Loan terms range from 1-5 years or up to 20 years for
the purchase of a primary residence. Participant loans are collateralized
by the balance in the participant's account and bear interest at the prime
interest rate. Interest rates range from 6.75% to 9.00% for outstanding
loans at March 31, 1998. Principal and interest is paid ratably through
monthly payroll deductions.
Administration of the Plan
The Plan is administered by a committee of employees of the Company. The
Committee members are selected by the Board of Directors of the Company.
Termination
Although it has not expressed any intent to do so, the Employer has the
right, under the Plan, to terminate the Plan subject to ERISA. In the
event of the termination of the Plan, all participants would be fully
vested in their account balances and assets would be distributed in
accordance with the Plan.
6
<PAGE>
NU-KOTE INTERNATIONAL, INC. EMPLOYEES SAVINGS PLAN
NOTES TO FINANCIAL STATEMENTS, Continued
2. SIGNIFICANT ACCOUNTING POLICIES:
Basis of Accounting
The financial statements of the Plan have been prepared on the accrual
basis of accounting in conformity with generally accepted accounting
principles.
Investment Valuation and Income Recognition
The fair market value of investments in investment funds are determined by
the Trustee, as each fund's investment manager, based on the fair value of
each underlying fund's investments principally using quoted market values.
Investments in the Nu-kote stock fund are valued at the quoted market value
of the underlying stock. Income and dividends from investments are accrued
as earned. Purchases and sales are reflected on a trade-date basis. The net
depreciation in the fair value of the Nu-kote stock fund reported in the
financial statements consists of the realized gains and losses and the
unrealized depreciation on this investment. The net appreciation in fair
value of investment funds reported in the financial statements includes
realized and unrealized gains and losses, dividends and capital gain
distributions reinvested.
Participant loans are stated at cost which approximates market.
Administrative Expenses
Administrative expenses of the Plan are primarily paid by the Plan.
Use of Estimates
The preparation of financial statements in conformity with generally
accepted accounting principles requires management to make estimates and
assumptions that affect the reported amounts of net assets available for
benefits at the date of the financial statements and the reported amounts
of changes in net assets available for benefits during the reporting
period. Actual results could differ from those estimates.
Risks and Uncertainties
The Plan provides for various investment options in any combination of
stocks, bonds, fixed income securities, investment funds, and other
investment securities. Investment securities are exposed to various risks,
such as interest rate, market, and credit risks. Due to the level of risk
associated with certain investment securities, it is at least reasonably
possible that changes in the values of investment securities will occur in
the near term
7
<PAGE>
NU-KOTE INTERNATIONAL, INC. EMPLOYEES SAVINGS PLAN
NOTES TO FINANCIAL STATEMENTS, Continued
and that such changes could materially affect participants' account
balances and the amounts reported in the statement of net assets available
for plan benefits.
Benefits
Benefits are recorded when paid.
3. INVESTMENTS:
Participant contributions are invested in accordance with the participant's
election in one or more investment programs.
The investment program options are the same for all contributions made to
the Plan. Participants may change the composition of their share of net
assets and their allocation percentage in each program at any time during
the calendar year. The estimated number of participants with a share of net
assets at March 31, 1998 and 1997 of each investment program is as follows:
<TABLE>
<CAPTION>
1998
----------
<S> <C>
Scudder Income Fund 176
Scudder Pathway Growth Portfolio 8
Scudder International Fund 1
Scudder Value Fund 289
Scudder Pathway Conservative Portfolio 3
Scudder Stable Value Fund 267
Scudder Pathway Balanced Portfolio 2
Scudder Stock Index Fund 283
Nu-kote Stock Fund 479
Scudder Cash Investment Trust -
1997
----------
NationsBank Stable Capital Fund 363
NationsBank Strategic Fixed Income Fund 227
NationsBank Capital Growth Fund 373
NationsBank Equity Index Fund 381
Nu-kote Stock Fund 650
</TABLE>
At March 31, 1998, 529 participants held assets in the Plan.
8
<PAGE>
NU-KOTE INTERNATIONAL, INC. EMPLOYEES SAVINGS PLAN
NOTES TO FINANCIAL STATEMENTS, Continued
Investment Programs
Each of the investment options will vary in price and the return will
fluctuate as market conditions change. The current investment options are
described as follows:
. Scudder Stable Value Fund seeks to provide a higher income than money
markets and a stability of principle. It invests in guaranteed
investment contracts, money market securities and treasury bills.
. Scudder Income Fund seeks to provide a steady current income. It
invests in intermediate and long-term, high-grade corporate bonds.
. Scudder Pathway Portfolios seek to provide diversified portfolios. The
Scudder Pathway Conservative Portfolio invests in bond investment
funds, stock funds, and cash and has a primary emphasis on high current
income with a secondary emphasis on long-term growth of capital. The
Scudder Pathway Balanced Portfolio invests in stock investment funds,
bond funds and cash with an emphasis on growth and current income. The
Scudder Pathway Growth Portfolio invests in stock investment funds,
bond funds, and cash and has an emphasis on long-term capital growth.
. Scudder Stock Index Fund seeks to provide long-term growth and income
potential as well as broad diversification. It invests in a mix of
stocks and stock funds that generally mirrors the S&P 500.
. Scudder Value Fund seeks to provide long-term capital growth. It
invests in undervalued common stocks of medium to large U. S.
companies.
. Scudder International Fund seeks to provide capital growth and
international diversification. It invest primarily in foreign stocks.
. Nu-kote Stock Fund consists of Nu-kote Holding, Inc.'s common stock and
$1,294 of cash to be invested in Nu-kote common stock. Since the fund
invests only in Nu-kote common stock, the value of this fund should be
expected to fluctuate more frequently than that of other Plan
investment options. Investments in the Nu-kote Stock Fund represent
shares of Nu-kote stock and, therefore, transactions within the fund
qualify as exempt party-in-interest transactions.
. Scudder Cash Investment Trust consists of unallocated forfeitures
invested in short-term money market investments.
9
<PAGE>
NU-KOTE INTERNATIONAL, INC. EMPLOYEES SAVINGS PLAN
NOTES TO FINANCIAL STATEMENTS, Continued
Prior to January 1, 1998, five funds were available for investment as
follows:
. NationsBank Stable Capital Fund seeks to maximize current income while
maintaining a fixed market value. It invests in a broad range of short-
term (one to three years) fixed-income securities including guaranteed
investment contracts, commercial paper, bank obligations, corporate
paper and money market instruments.
. NationsBank Strategic Fixed Income Fund seeks to maximize total
investment return through the active management of fixed income
securities. It invests primarily in a mix of investment grade (BBB or
better) corporate, government and mortgage-backed securities. The fund
is structured to generally have an average weighted maturity of ten
years or less.
. NationsBank Capital Growth Fund seeks long-term capital growth. It
invests in stocks with growth characteristics which NationsBank
believes should outperform the market over time. The fund focuses on
companies with:
. Large market capitalization--above $500,000,000
. Above average growth potential
. Above average return on equity and earnings growth relative to
the S&P 500
. NationsBank Equity Index Fund seeks to closely approximate the total
return performance of the S&P 500 Index. Its portfolio holdings are
structured according to the S&P 500 Index.
. Nu-kote Stock Fund consists of Nu-kote Holding, Inc.'s common stock and
$5,166 of cash to be invested in Nu-kote common stock. Investments in
the Nu-kote Stock Fund represent shares of Nu-kote stock and,
therefore, transactions within the Fund also qualify as exempt
party-in-interest transactions.
10
<PAGE>
NU-KOTE INTERNATIONAL, INC. EMPLOYEES SAVINGS PLAN
NOTES TO FINANCIAL STATEMENTS, Continued
Asset Values and Number of Units
The total asset value, number of units and the asset value per unit by
investment within the investment program of the Plan at March 31, 1998 and
1997 are as follows:
<TABLE>
<CAPTION>
March 31, 1998
--------------------------------------------------
Number Value
Total of Per
Asset Value Units Unit
-------------- ----------- ----------
<S> <C> <C> <C>
Scudder Cash Investment Trust $ 5,190 5,190 $ 1.00
Scudder Stable Value Fund 1,751,072* 1,751,072 1.00
Scudder Income Fund 798,690* 59,471 13.43
Scudder Pathway Balanced Portfolio 8,366 608 13.76
Scudder Pathway Conservative Portfolio 22,944 1,737 13.21
Scudder Pathway Growth Portfolio 34,402 2,364 14.55
Scudder Stock Index Fund 3,061,681* 101,785 30.08
Scudder Value Fund 2,546,574* 101,740 25.03
Scudder International Fund 1,450 28 51.79
Nu-kote Stock Fund 145,798 661,887 .22
----------
$8,376,167
==========
</TABLE>
<TABLE>
<CAPTION>
March 31, 1997
--------------------------------------------------
Number Value
Total of Per
Asset Value Units Unit
-------------- ----------- ----------
<S> <C> <C> <C>
NationsBank Stable Capital Fund $1,763,689* 139,063 $12.68
NationsBank Strategic Fixed Income Fund 917,890* 95,415 9.62
NationsBank Capital Growth Fund 1,966,352* 168,064 11.70
NationsBank Equity Index Fund 2,354,819* 148,195 15.89
Nu-kote Stock Fund 420,175* 79,854 5.26
----------
$7,422,925
==========
</TABLE>
* Investments which comprise more than 5% of net assets available for benefits
at March 31, 1998 and 1997.
11
<PAGE>
NU-KOTE INTERNATIONAL, INC. EMPLOYEES SAVINGS PLAN
NOTES TO FINANCIAL STATEMENTS, Continued
4. ROLLOVER CONTRIBUTIONS:
As a result of Nu-kote's acquisition during fiscal 1995 of the Hardcopy
Division of Pelikan Holding AG, acquired U.S. employees were offered the
option to transfer their accounts to the Plan. Rollover contributions in
1998 and 1997 were $4,371 and $48,366, respectively.
5. INCOME TAX STATUS:
The Internal Revenue Service has determined and informed the Company by a
letter dated January 11, 1997, that the Plan and related trust are designed
in accordance with applicable sections of the Internal Revenue Code. The
Plan has been amended since receiving the determination letter. However,
the Plan administrator believes that the Plan is designed and is currently
being operated in compliance with the applicable requirements of the
Internal Revenue Code.
6. PARTICIPANT INVESTMENT OPTIONS:
The following is a summary by investment fund of changes in net assets
available for benefits for the years ended March 31, 1998 and 1997 and net
assets available for benefits as of March 31, 1998 and 1997:
12
<PAGE>
NU-KOTE INTERNATIONAL, INC. EMPLOYEES SAVINGS PLAN
NOTES TO FINANCIAL STATEMENTS, Continued
<TABLE>
<CAPTION>
Participant Directed
---------------------------------------------------------------------------------------------------
NationsBank NationsBank Scudder Cash Scudder Scudder
NationsBank Strategic Capital NationsBank Investment Stable Income
1998 Stable Capital Fixed Income Growth Equity Index Loan Fund Trust Value Fund Fund
- ---------------------------- -------------- ------------ ----------- ------------ --------- ------------ ---------- --------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
Assets:
Investments at fair value:
Investment funds $ 5,190 $1,751,072 $798,690
Nu-kote stock fund
Participant loans $ 184,377
-------------- ------------ ----------- ------------ --------- ------------ ---------- --------
Total investments - - - - 184,377 5,190 1,751,072 798,690
Receivables:
Employee contributions
Employer contributions
-------------- ------------ ----------- ------------ --------- ------------ ---------- --------
Total assets - - - - 184,377 5,190 1,751,072 798,690
-------------- ------------ ----------- ------------ --------- ------------ ---------- --------
Liabilities:
Administrative fees
payable
Excess contributions
refundable
-------------- ------------ ----------- ------------ --------- ------------ ---------- --------
Total liabilities - - - - - - - -
-------------- ------------ ----------- ------------ --------- ------------ ---------- --------
Net assets available for
benefits $ - $ - $ - $ - $ 184,377 $ 5,190 $1,751,072 $798,690
============== ============ =========== ============ ========= ============ ========== ========
Balance, March 31, 1997 $ 1,763,689 $ 917,890 $ 1,966,352 $ 2,354,819 $ 302,198 $ - $ - $ -
-------------- ------------ ----------- ------------ --------- ------------ ---------- --------
Additions:
Transfer to new funds
(footnote 3) (1,711,667) (798,997) (2,222,160) (2,624,222) 1,711,667 798,997
Employee contributions 133,769 58,145 162,894 188,139 31,552 13,856
Employer contributions 11,469 5,387
Rollover contributions 4,371
Net appreciation in fair
value of investment funds 79,345 83,912 615,108 681,653 83 35,261 10,614
Net depreciation in the fair
value of Nu-kote stock fund
Interest income 13,787
Deductions:
Benefits paid to participants (413,792) (276,998) (459,973) (533,867) (78,426) (3,929) (479)
Administrative expenses (5,671) (1,927) (6,272) (6,241) (271) (121)
Interfund transfers, net 149,956 17,975 (55,949) (60,281) (53,182) 5,107 (34,677) (29,564)
-------------- ------------ ----------- ------------ --------- ------------ ---------- --------
Net additions (deductions) (1,763,689) (917,890) (1,966,352) (2,354,819) (117,821) 5,190 1,751,072 798,690
-------------- ------------ ----------- ------------ --------- ------------ ---------- --------
Balance, March 31, 1998 $ - $ - $ - $ - $ 184,377 $ 5,190 $1,751,072 $798,690
============== ============ =========== ============ ========= ============ ========== ========
continued
</TABLE>
13
<PAGE>
NU-KOTE INTERNATIONAL, INC. EMPLOYEES SAVINGS PLAN
NOTES TO FINANCIAL STATEMENTS, Continued
<TABLE>
<CAPTION>
Participant Directed
---------------------------------------------------------------------- Participant and
Scudder Scudder Scudder Nonparticipant
Pathway Pathway Pathway Scudder Scudder Scudder Directed
1998 Balanced Conservative Growth Stock Value International Nu-kote
Portfolio Portfolio Portfolio Index Fund Fund Fund Other Stock Total
- --------------------------- ------- -------- -------- ----------- ----------- ------- -------- --------- -----------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
Assets:
Investments at fair value:
Investment funds $ 8,366 $ 22,944 $ 34,402 $ 3,061,681 $ 2,546,574 $ 1,450 $ 8,230,369
Nu-kote stock fund $ 145,798 145,798
Participant loans 184,377
------- -------- -------- ----------- ----------- ------- -------- --------- -----------
Total investments 8,366 22,944 34,402 3,061,681 2,546,574 1,450 - 145,798 8,560,544
Receivables:
Employee contributions $ 44,584 44,584
Employer contributions 32,246 32,246
------- -------- -------- ----------- ----------- ------- -------- --------- -----------
Total assets 8,366 22,944 34,402 3,061,681 2,546,574 1,450 76,830 145,798 8,637,374
------- -------- -------- ----------- ----------- ------- -------- --------- -----------
Liabilities:
Administrative fees payable 15,203 15,203
Excess contributions refundable 47,270 47,270
------- -------- -------- ----------- ----------- ------- -------- --------- -----------
Total liabilities - - - - - - 62,473 - 62,473
------- -------- -------- ----------- ----------- ------- -------- --------- -----------
Net assets available for benefits $ 8,366 $ 22,944 $ 34,402 $ 3,061,681 $ 2,546,574 $ 1,450 $ 14,357 $ 145,798 $ 8,574,901
======= ======== ======== =========== =========== ======= ======== ========= ===========
Balance, March 31, 1997 $ - $ - $ - $ - $ - $ - $ 21,389 $ 420,175 $ 7,746,512
------- -------- -------- ----------- ----------- ------- -------- --------- -----------
Additions:
Transfer to new funds (footnote 3) 2,624,222 2,222,160 -
Employee contributions 46,543 44,680 (73,381) 96,149 702,346
Employer contributions 17,139 16,759 6,393 236,139 293,286
Rollover contributions 4,371
Net appreciation in fair value of
investment funds 88 111 612 369,776 296,505 4 2,173,072
Net depreciation in the fair value
of Nu-kote stock fund (584,232) (584,232)
Interest income 13,787
Deductions:
Benefits paid to participants (2,847) (1,468) 60,159 (38,440) (1,750,060)
Administrative expenses (1) (2) (4) (441) (367) (203) (2,660) (24,181)
Interfund transfers, net 8,279 22,835 33,794 7,289 (31,695) 1,446 18,667 -
------- -------- -------- ----------- ----------- ------- -------- --------- -----------
Net additions (deductions) 8,366 22,944 34,402 3,061,681 2,546,574 1,450 (7,032) (274,377) 828,389
------- -------- -------- ----------- ----------- ------- -------- --------- -----------
Balance, March 31, 1998 $ 8,366 $ 22,944 $ 34,402 $ 3,061,681 $ 2,546,574 $ 1,450 $ 14,357 $ 145,798 $ 8,574,901
======= ======== ======== =========== =========== ======= ======== ========= ===========
</TABLE>
14
<PAGE>
NU-KOTE INTERNATIONAL, INC. EMPLOYEES SAVINGS PLAN
NOTES TO FINANCIAL STATEMENTS, CONTINUED
<TABLE>
<CAPTION>
Participant Directed
------------------------------------------------------------------ Participant and
NationsBank Nonparticipant
NationsBank Strategic NationsBank NationsBank Directed
Stable Fixed Capital Equity Loan Nu-kote
1997 Capital Income Growth Index Fund Other Stock Total
- ---------------------------- ----------- --------- ----------- ----------- --------- -------- ---------- ------------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
Assets:
Investments at fair value:
Investment funds $ 1,763,689 $ 917,890 $ 1,966,352 $ 2,354,819 $ 7,002,750
Nu-kote stock fund $ 420,175 420,175
Participant loans $ 302,198 302,198
----------- --------- ----------- ----------- --------- -------- ---------- -----------
Total investments 1,763,689 917,890 1,966,352 2,354,819 302,198 - 420,175 7,725,123
Receivables:
Employee contributions $ 70,695 70,695
Employer contributions 25,853 25,853
----------- --------- ----------- ----------- --------- -------- ---------- -----------
Total assets 1,763,689 917,890 1,966,352 2,354,819 302,198 96,548 420,175 7,821,671
Liabilities:
Administrative fees payable (15,000) (15,000)
Other (60,159) (60,159)
----------- --------- ----------- ----------- --------- -------- ---------- -----------
Net assets available for benefits $ 1,763,689 $ 917,890 $ 1,966,352 $ 2,354,819 $ 302,198 $ 21,389 $ 420,175 $ 7,746,512
=========== ========= =========== =========== ========= ======== ========== ===========
Balance, March 31, 1996 $ 1,890,708 $ 944,602 $ 1,594,950 $ 1,905,121 $ 274,571 $ 81,599 $1,358,606 $ 8,050,157
----------- --------- ----------- ----------- --------- -------- ---------- -----------
Additions:
Employee contributions 204,309 94,466 255,664 277,206 (55,053) 142,493 919,085
Employer contributions 2,343 361,349 363,692
Rollover contributions 5,194 7,171 6,655 13,764 15,582 48,366
Net appreciation in fair value of
investment funds 82,938 24,459 202,474 365,629 675,500
Net depreciation in the fair value
of Nu-kote stock fund (1,321,383) (1,321,383)
Interest income 19,330 19,330
Deductions:
Benefits paid to participants (257,297) (79,966) (213,474) (241,250) (15,128) (137,670) (944,785)
Administrative expenses (24,209) (7,089) (6,739) (11,481) (7,500) (6,432) (63,450)
Interfund transfers, net (137,954) (65,753) 126,822 45,830 23,425 7,630
----------- --------- ----------- ----------- --------- -------- --------- -----------
Net additions (deductions) (127,019) (26,712) 371,402 449,698 27,627 (60,210) (938,431) (303,645)
----------- --------- ----------- ----------- --------- -------- --------- -----------
Balance, March 31, 1997 $ 1,763,689 $ 917,890 $ 1,966,352 $ 2,354,819 $ 302,198 $ 21,389 $ 420,175 $ 7,746,512
=========== ========= =========== =========== ========= ======== ========= ===========
</TABLE>
15
<PAGE>
NU-KOTE INTERNATIONAL, INC. EMPLOYEES SAVINGS PLAN
ITEM 27a--SCHEDULE OF ASSETS HELD FOR
INVESTMENT PURPOSES
March 31, 1998
<TABLE>
<CAPTION>
Number Current
Identity of Issue and Description of Investments of Shares Cost Value
- ----------------------------------------------------------------- ----------- --------- ----------
<S> <C> <C> <C>
Scudder Cash Investment Trust* 5,190 $ 5,190 $ 5,190
Scudder Stable Value Fund* 1,751,072 1,751,072 1,751,072
Scudder Income Fund* 59,471 804,037 798,690
Scudder Pathway Balanced Portfolio* 608 8,379 8,366
Scudder Pathway Conservative Portfolio* 1,737 23,183 22,944
Scudder Pathway Growth Portfolio* 2,364 33,957 34,402
Scudder Stock Index Fund* 101,785 2,707,517 3,061,681
Scudder Value Fund* 101,740 2,266,294 2,546,574
Scudder International Fund* 28 1,454 1,450
Nu-kote Stock Fund* 661,887 1,360,559 145,798
Participant loans* (A) - 184,377
-------- --------
$8,961,642 $8,560,544
======== ========
</TABLE>
* Denotes party-in-interest
(A) Interest rates on loans range from 6.75% to 9.00% at March 31, 1998. Loan
terms range from one to five years or up to twenty years for the purchase
of a primary residence.
16
<PAGE>
NU-KOTE INTERNATIONAL, INC. EMPLOYEES SAVINGS PLAN
ITEM 27b--SCHEDULE OF LOANS OR FIXED INCOME OBLIGATIONS
March 31, 1998
<TABLE>
<CAPTION>
Amount of Amount of
Original Principal Interest Unpaid
Principal Received Received Balance at
Identify and Address of Amount of During the During the End of Principal Interest
Party Involved Loan Reporting Year Reporting Year Year Description of Obligation Overdue Overdue
- ------------------------ ---------- -------------- -------------- ----------- ------------------------- ---------- ----------
<S> <C> <C> <C> <C> <C> <C> <C>
Michael Hoffman $ 1,169 $ - $ - $ 1,169 Participant Loan $ 181 $ 82
136 Brinker Street Origination date: 3/12/97
Latrobe, PA 15650 Maturity date: 4/18/02
Secured by account balance,
interest rate 8.25%
Steven Sage 9,144 1,545 272 3,720 Participant Loan 808 101
Rt. #1, Box 148 Origination date: 3/24/95
Perryopolis, PA Maturity date: 5/1/99
15473 Secured by account balance,
interest rate 9.00%
Sheila Harper 10,053 - - 10,053 Participant Loan 1,052 515
4462 Jackson Origination date: 6/30/97
Hollow Rd. Maturity date: 8/1/02
Franklin, TN 37064 Secured by account balance,
interest rate 8.5%
William Kyzer 10,000 - - 9,206 Participant Loan 6,240 1,046
1641 Richardson Rd. Origination date: 12/4/95
Lewisburg, TN 37091 Maturity date: 1/7/99
Secured by account balance,
interest rate 8.75%
</TABLE>
The Company has notified all participants with loans in default that repayment
is due immediately.
17
<PAGE>
NU-KOTE INTERNATIONAL, INC. EMPLOYEES SAVINGS PLAN
ITEM 27d--SCHEDULE OF REPORTABLE TRANSACTIONS
for the year ended March 31, 1998
<TABLE>
<CAPTION>
Number of Number of
Purchase Selling Purchase Sales Current Net Gain
Transactions Transactions Price Price Cost Value or Loss
------------ ------------ --------- ---------- --------- --------- ---------
<S> <C> <C> <C> <C> <C> <C> <C>
Series of transactions:
NationsBank Equity Index Fund * 192 $403,655 $ 403,655 $ 403,655
NationsBank Equity Index Fund * 227 $ 704,589 594,839 $ 109,750
NationsBank Capital Growth Fund * 172 865,431 865,431 865,431
NationsBank Capital Growth Fund * 227 618,498 576,561 41,937
NationsBank Strategic Fixed Income Fund * 153 168,316 168,316 168,316
NationsBank Strategic Fixed Income Fund * 169 329,630 319,017 10,613
Nu-kote Stock Fund * 137 466,457 466,457 466,457
Nu-kote Stock Fund * 226 207,389 253,304 (40,915)
NationsBank Stable Capital Fund * 130 378,905 378,905 378,905
NationsBank Stable Capital Fund * 224 510,259 498,835 11,424
</TABLE>
* Denotes party-in-interest
18
<PAGE>
EXHIBIT 23
CONSENT OF INDEPENDENT ACCOUNTANTS
Re: Nu-kote International, Inc. Employees Savings Plan Registration Statement
No. 33-69708
We consent to the incorporation by reference in the above Registration Statement
on Form S-8 of our report dated October 13, 1998 to the Plan Participants and
Administrator of Nu-kote International, Inc. Employees Savings Plan which is
included in this Annual Report on Form 11-K.
Dallas, Texas
October 13, 1998
