<PAGE> 1
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
----------------------------------------
FORM 11-K
FOR ANNUAL REPORTS OF EMPLOYEE
STOCK PURCHASE, SAVINGS AND SIMILAR
PLANS PURSUANT TO SECTION 15(d)
OF THE SECURITIES EXCHANGE ACT OF 1934
----------------------------------------
(Mark One)
[X] ANNUAL REPORT PURSUANT TO SECTION 15(d) OF
THE SECURITIES EXCHANGE ACT OF 1934 [FEE REQUIRED]
For the fiscal year ended March 31, 1997.
OR
TRANSITION REPORT PURSUANT TO SECTION 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934 [NO FEE REQUIRED]
For the transition period from _________ to _________.
Commission File Number 1-12282
A. Full title of the plan and the address of the plan, if different
from that of the issuer named below:
CORRPRO COMPANIES, INC. PROFIT SHARING PLAN AND TRUST
B. Name of issuer of the securities held pursuant to the plan and the
address of its principal executive office:
CORRPRO COMPANIES, INC.
1090 ENTERPRISE DRIVE
MEDINA, OHIO 44256
1
<PAGE> 2
CORRPRO COMPANIES, INC.
-----------------------
PROFIT SHARING PLAN AND TRUST
-----------------------------
INDEX TO FINANCIAL STATEMENTS
-----------------------------
Page
----
Reports of Independent Accountants 3-4
Statement of Net Assets Available for Benefits at March 31, 1997 5
Statement of Net Assets Available for Benefits at March 31, 1996 6
Statement of Changes in Net Assets Available for Benefits for the
Year Ended March 31, 1997 7
Statement of Changes in Net Assets Available for Benefits for the
Year Ended March 31, 1996 8
Notes to Financial Statements 9
Supplemental Schedules:
Schedule of Assets Held for Investment Purposes at March 31, 1997 17
Schedule of Reportable Transactions for the Year Ended March 31, 1997 18
Consent of Independent Accountants - KPMG Peat Marwick LLP 19
Consent of Independent Accountants - Price Waterhouse LLP 20
Note: All other schedules required by the Department of Labor Rules and
Regulations for Reporting and Disclosure under the Employee Retirement Income
Security Act of 1974 have been omitted because the conditions under which they
are required are not present.
2
<PAGE> 3
REPORT OF INDEPENDENT ACCOUNTANTS
---------------------------------
To the Participants and Plan Administrator of the Corrpro Companies, Inc.
Profit Sharing Plan and Trust
We have audited the accompanying statement of net assets available for benefits
of the Corrpro Companies, Inc. Profit Sharing Plan and Trust as of March 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. The financial statements of the Corrpro
Companies, Inc. Profit Sharing Plan and Trust as of March 31, 1996, were audited
by other auditors whose report dated September 13, 1996, expressed an
unqualified opinion on these statements.
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 1997 financial statements referred to above present fairly,
in all material respects, the net assets available for benefits of the plan as
of March 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 performed for the purpose of forming an opinion on the basic
financial statements taken as a whole. The supplemental schedules of assets held
for investment purposes as of March 31, 1997 and reportable transactions for the
year ended March 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 statement of net assets
available for benefits and the statement of changes in net assets available for
benefits is presented for purposes of additional analysis rather than to present
the net assets available for benefits and changes in net assets available for
benefits 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.
KPMG Peat Marwick LLP
Cleveland, Ohio
August 8, 1997
3
<PAGE> 4
REPORT OF INDEPENDENT ACCOUNTANTS
---------------------------------
To the Participants and Plan Administrator of the Corrpro Companies, Inc.
Profit Sharing Plan and Trust.
We have audited the accompanying statement of net assets available for benefits
of the Corrpro Companies, Inc. Profit Sharing Plan and Trust as of March 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, the financial statements referred to in the first paragraph of
this report present fairly, in all material respects, the financial status of
the plan as of March 31, 1996 and the changes in its financial status for the
year then ended in conformity with generally accepted accounting principles. We
have not audited any financial statements of the Corrpro Companies, Inc. Profit
Sharing Plan and Trust for any period subsequent to March 31, 1996.
/s/ Price Waterhouse LLP
- ------------------------
PRICE WATERHOUSE LLP
Cleveland, Ohio
September 13, 1996
4
<PAGE> 5
CORRPRO COMPANIES, INC.
PROFIT SHARING PLAN AND TRUST
STATEMENT OF NET ASSETS AVAILABLE FOR BENEFITS ( WITH FUND INFORMATION )
MARCH 31, 1997
<TABLE>
<CAPTION>
Participant Directed
----------------------------------------------------------------
CIGNA
----------------------------------------------------------------
Guaranteed Lifetime Funds
-----------------------------------------------------
Assets Income Fund 20 30 40 50 60
----------- -- -- -- -- --
<S> <C> <C> <C> <C> <C> <C>
Investments at Fair Value:
Connecticut General (CIGNA)
Guaranteed Income Fund $1,870,399 $ - $ - $ - $ - $ -
Lifetime20 Fund - 76,254 - - - -
Lifetime30 Fund - - 269,153 - - -
Lifetime40 Fund - - - 319,597 - -
Lifetime50 Fund - - - - 352,193 -
Lifetime60 Fund - - - - - 104,861
CIGNA Separate Accounts
Fidelity Growth and Income Fund - - - - - -
Vanguard Wellington Fund - - - - - -
Fidelity Magellan Fund - - - - - -
Twentieth Century Ultra Fund - - - - - -
Warburg Pincus Emerging Growth Fund - - - - - -
Warburg Pincus Advisor International Equity Fund - - - - - -
Corrpro Companies, Inc. Common Stock - - - - - -
Loans to Participants - - - - - -
----------------------------------------------------------------
Total Investments 1,870,399 76,254 269,153 319,597 352,193 104,861
Receivables:
Loans to participants 3,087 74 1,770 119 461 34
Participants' contributions 15,773 2,167 3,923 4,262 4,164 1,143
Employer contributions 1,326 187 308 300 272 77
Rollover contributions 328 - 164 - 610 -
Accrued interest 914 13 307 79 171 18
----------------------------------------------------------------
Total Receivables 21,428 2,441 6,472 4,760 5,678 1,272
----------------------------------------------------------------
NET ASSETS AVAILABLE FOR BENEFITS $1,891,827 $78,695 $275,625 $324,357 $357,871 $106,133
================================================================
<CAPTION>
Participant Directed (continued)
--------------------------------------------------------
Fidelity Vanguard Fidelity Twentieth
Assets Growth & Inc. Wellington Magellan Century Ultra
------------- ---------- -------- -------------
<S> <C> <C> <C> <C>
Investments at Fair Value:
Connecticut General (CIGNA)
Guaranteed Income Fund $ - $ - $ - $ -
Lifetime20 Fund - - - -
Lifetime30 Fund - - - -
Lifetime40 Fund - - - -
Lifetime50 Fund - - - -
Lifetime60 Fund - - - -
CIGNA Separate Accounts
Fidelity Growth and Income Fund 654,217 - - -
Vanguard Wellington Fund 602,799 - -
Fidelity Magellan Fund - - 852,755 -
Twentieth Century Ultra Fund - - - 722,172
Warburg Pincus Emerging Growth Fund - - - -
Warburg Pincus Advisor International Equity Fund - - - -
Corrpro Companies, Inc. Common Stock - - - -
Loans to Participants - - - -
-----------------------------------------------------
Total Investments 654,217 602,799 852,755 722,172
Receivables:
Loans to participants 867 350 1,110 620
Participants' contributions 11,707 6,669 13,688 13,652
Employer contributions 849 487 1,068 888
Rollover contributions 2,642 2,197 2,032 2,032
Accrued interest 233 209 655 555
-----------------------------------------------------
Total Receivables 16,298 9,912 18,553 17,747
-----------------------------------------------------
NET ASSETS AVAILABLE FOR BENEFITS $670,515 $612,711 $871,308 $739,919
=====================================================
<CAPTION>
Participant Directed (continued)
---------------------------------------------------
Warburg Warburg Corrpro Loans to
Assets Emer. Growth Intl Equity Stock Participants Total
------------ ----------- ----- ------------ -----
<S> <C> <C> <C> <C> <C>
Investments at Fair Value :
Connecticut General (CIGNA)
Guaranteed Income Fund $ - $ - $ - $ - $1,870,399
Lifetime20 Fund - - - - 76,254
Lifetime30 Fund - - - - 269,153
Lifetime40 Fund - - - - 319,597
Lifetime50 Fund - - - - 352,193
Lifetime60 Fund - - - - 104,861
CIGNA Separate Accounts
Fidelity Growth and Income Fund - - - - 654,217
Vanguard Wellington Fund - - - - 602,799
Fidelity Magellan Fund - - - - 852,755
Twentieth Century Ultra Fund - - - - 722,172
Warburg Pincus Emerging Growth Fund 299,593 - - - 299,593
Warburg Pincus Advisor International Equity Fund - 182,762 - - 182,762
Corrpro Companies, Inc. Common Stock - - 1,858,032 - 1,858,032
Loans to Participants - - - 372,076 372,076
----------------------------------------------------------------
Total Investments 299,593 182,762 1,858,032 372,076 8,536,863
Receivables :
Loans to participants 632 92 332 (9,548) -
Participants' contributions 6,562 2,141 12,035 - 97,886
Employer contributions 469 146 852 - 7,229
Rollover contributions 2,033 - - - 12,038
Accrued interest 516 6 150 - 3,826
----------------------------------------------------------------
Total Receivables 10,212 2,385 13,369 (9,548) 120,979
----------------------------------------------------------------
NET ASSETS AVAILABLE FOR BENEFITS $309,805 $185,147 $1,871,401 $362,528 $8,657,842
================================================================
</TABLE>
The accompanying notes are an integral part of these financial statements.
5
<PAGE> 6
CORRPRO COMPANIES, INC.
PROFIT SHARING PLAN AND TRUST
STATEMENT OF NET ASSETS AVAILABLE FOR BENEFITS (WITH FUND INFORMATION)
MARCH 31, 1996
<TABLE>
<CAPTION>
Participant Directed
---------------------------------------------------------------------
CIGNA
---------------------------------------------------------------------
Guaranteed Lifetime Funds
-------------------------------------------------------
Assets Income Fund 20 30 40 50 60
----------- -- -- -- -- --
<S> <C> <C> <C> <C> <C> <C>
Investments at Fair Value:
Connecticut General (CIGNA)
Guaranteed Income Fund $ 2,081,757 $ - $ - $ - $ - $ -
Lifetime20 Fund - 95,111 - - - -
Lifetime30 Fund - - 232,153 - - -
Lifetime40 Fund - - - 271,324 - -
Lifetime50 Fund - - - - 317,722 -
Lifetime60 Fund - - - - - 91,934
CIGNA Separate Accounts
Fidelity Growth and Income Fund - - - - - -
Vanguard Wellington Fund - - - - - -
Fidelity Magellan Fund - - - - - -
Twentieth Century Ultra Fund - - - - - -
Warburg Pincus Emerging Growth Fund - - - - - -
Warburg Pincus Advisor International Equity Fund - - - - - -
Corrpro Companies, Inc. Common Stock - - - - - -
Loans to Participants (22,750) - - - - -
---------------------------------------------------------------------
Total Investments 2,059,007 95,111 232,153 271,324 317,722 91,934
Receivables:
Loans to participants 1,299 14 213 179 42 19
Participants' contributions 17,010 1,952 4,625 3,391 3,331 789
Employer contributions 1,493 166 352 277 216 65
Rollover contributions - - - 2,376 - -
Accrued interest 333 7 77 71 112 9
---------------------------------------------------------------------
Total Receivables 20,135 2,139 5,267 6,294 3,701 882
Pending investment transactions and fund transfers (7,286) (333) (813) (950) (1,112) (322)
---------------------------------------------------------------------
NET ASSETS AVAILABLE FOR BENEFITS $ 2,071,856 $ 96,917 $ 236,607 $ 276,668 $ 320,311 $ 92,494
======================================================================
<CAPTION>
Participant Directed (continued)
-----------------------------------------------------------
Fidelity Vanguard Fidelity Twentieth
Assets Growth & Inc. Wellington Magellan Century Ultra
------------- ---------- -------- -------------
<S> <C> <C> <C> <C>
Investments at Fair Value:
Connecticut General (CIGNA)
Guaranteed Income Fund $ - $ - $ - $ -
Lifetime20 Fund - - - -
Lifetime30 Fund - - - -
Lifetime40 Fund - - - -
Lifetime50 Fund - - - -
Lifetime60 Fund - - - -
CIGNA Separate Accounts
Fidelity Growth and Income Fund 432,757 - - -
Vanguard Wellington Fund - 427,370 - -
Fidelity Magellan Fund - - 637,542 -
Twentieth Century Ultra Fund - - - 612,419
Warburg Pincus Emerging Growth Fund - - - -
Warburg Pincus Advisor International Equity Fund - - - -
Corrpro Companies, Inc. Common Stock - - - -
Loans to Participants (3,250) - (3,407) (157)
---------------------------------------------------------------------
Total Investments 429,507 427,370 634,135 612,262
Receivables:
Loans to participants 212 226 726 218
Participants' contributions 9,888 5,845 13,222 11,420
Employer contributions 729 412 1,063 802
Rollover contributions - 1,188 46,236 45,048
Accrued interest 106 121 294 197
---------------------------------------------------------------------
Total Receivables 10,935 7,792 61,541 57,685
Pending investment transactions and fund transfers (325) (321) (478) (459)
---------------------------------------------------------------------
NET ASSETS AVAILABLE FOR BENEFITS $ 440,117 $ 434,841 $ 695,198 $ 669,488
=====================================================================
<CAPTION>
Participant Directed (continued)
-----------------------------------------------------------
Warburg Warburg Corrpro Loans to
Assets Emer. Growth Intl Equity Stock Participants Total
------------ ----------- ----- ------------ -----
<S> <C> <C> <C> <C> <C>
Investments at Fair Value:
Connecticut General (CIGNA)
Guaranteed Income Fund $ - $ - $ - $ - $ 2,081,757
Lifetime20 Fund - - - - 95,111
Lifetime30 Fund - - - - 232,153
Lifetime40 Fund - - - - 271,324
Lifetime50 Fund - - - - 317,722
Lifetime60 Fund - - - - 91,934
CIGNA Separate Accounts
Fidelity Growth and Income Fund - - - - 432,757
Vanguard Wellington Fund - - - - 427,370
Fidelity Magellan Fund - - - - 637,542
Twentieth Century Ultra Fund - - - - 612,419
Warburg Pincus Emerging Growth Fund 238,003 - - - 238,003
Warburg Pincus Advisor International Equity Fund - 140,461 - - 140,461
Corrpro Companies, Inc. Common Stock - - 1,502,429 - 1,502,429
Loans to Participants (157) - - 421,215 391,494
--------------------------------------------------------------------
Total Investments 237,846 140,461 1,502,429 421,215 7,472,476
Receivables:
Loans to participants 209 8 384 (3,749) -
Participants' contributions 4,901 1,733 6,178 - 84,285
Employer contributions 391 117 520 - 6,603
Rollover contributions - - 60,064 - 154,912
Accrued interest 142 3 144 - 1,616
--------------------------------------------------------------------
Total Receivables 5,643 1,861 67,290 (3,749) 247,416
Pending investment transactions and fund transfers (179) (105) (5,259) - (17,942)
--------------------------------------------------------------------
NET ASSETS AVAILABLE FOR BENEFITS $ 243,310 $ 142,217 $ 1,564,460 $ 417,466 $ 7,701,950
====================================================================
</TABLE>
The accompanying notes are an integral part of these financial statements.
6
<PAGE> 7
CORRPRO COMPANIES, INC.
PROFIT SHARING PLAN AND TRUST
STATEMENT OF CHANGES IN NET ASSETS AVAILABLE FOR BENEFITS
(WITH FUNDED INFORMATION)
FOR THE YEAR ENDING MARCH 31,1997
<TABLE>
<CAPTION>
Participant Directed
----------------------------------------------------------------------------------
CIGNA
----------------------------------------------------------------------------------
Guaranteed Lifetime Funds
-----------------------------------------------------------------------
Income Fund 20 30 40 50 60
----------- -- -- -- -- --
<S> <C> <C> <C> <C> <C> <C>
INCREASES IN ASSETS:
Contributions:
Participants $ 204,496 $ 24,689 $ 50,954 $ 43,758 $ 44,179 $ 11,720
Employer 17,370 2,155 3,998 3,196 2,819 849
Rollover 526 1,865 3,162 5,317 1,823 3,900
Investment Income:
Interest 90,443 - - - - -
Interest on loans 10,134 236 1,227 1,029 2,124 53
Net gain/(loss) from change in market value of
securities held and from securities sold - 4,276 16,455 18,777 22,935 6,564
----------------------------------------------------------------------------------
Total increases 322,969 33,221 75,796 72,077 73,880 23,086
DECREASES IN ASSETS:
Distributions for withdrawals and terminations (298,990) (66,466) (15,089) (26,537) (28,142) (3,173)
Administrative expenses 2,354 (17) 221 544 932 218
----------------------------------------------------------------------------------
Total decreases (296,636) (66,483) (14,868) (25,993) (27,210) (2,955)
TRANSFER OF ASSETS:
Loans to participants (19,281) (1,545) (3,986) (5,428) (12,317) (6,074)
Loan repayments 31,875 4,572 6,950 1,496 3,207 111
Interfund transfers (218,956) 12,013 (24,874) 5,537 - (529)
----------------------------------------------------------------------------------
Net transfers (206,362) 15,040 (21,910) 1,605 (9,110) (6,492)
----------------------------------------------------------------------------------
NET INCREASE/(DECREASE) IN ASSETS (180,029) (18,222) 39,018 47,689 37,560 13,639
NET ASSETS - AVAILABLE FOR BENEFITS
BEGINNING OF THE YEAR 2,071,856 96,917 236,607 276,668 320,311 92,494
----------------------------------------------------------------------------------
NET ASSETS - AVAILABLE FOR BENEFITS
END OF YEAR $ 1,891,827 $ 78,695 $ 275,625 $ 324,357 $ 357,871 $ 106,133
================================================================================
<CAPTION>
Participant Directed (continued)
-------------------------------------------------------
Fidelity Vanguard Fidelity Twentieth
Growth & Inc. Wellington Magellan Century Ultra
------------- ---------- -------- -------------
<S> <C> <C> <C> <C>
INCREASES IN ASSETS:
Contributions:
Participants $ 123,690 $ 68,552 $ 149,795 $ 156,076
Employer 9,117 5,005 12,068 10,530
Rollover 6,182 4,537 18,543 14,044
Investment Income:
Interest - - - -
Interest on loans 1,810 1,459 4,978 2,563
Net gain/(loss) from change in market value of
securities held and from securities sold 70,374 57,717 63,211 68,278
-------------------------------------------------------
Total increases 211,173 137,270 248,595 251,491
DECREASES IN ASSETS:
Distributions for withdrawals and terminations (39,621) (15,046) (63,379) (192,941)
Administrative expenses (54) 125 150 (111)
-------------------------------------------------------
Total decreases (39,675) (14,921) (63,229) (193,052)
TRANSFER OF ASSETS:
Loans to participants (10,096) (5,661) (12,252) (10,369)
Loan repayments 9,493 5,039 10,755 2,896
Interfund transfers 59,503 56,143 (7,759) 19,465
-------------------------------------------------------
Net transfers 58,900 55,521 (9,256) 11,992
-------------------------------------------------------
NET INCREASE/(DECREASE) IN ASSETS 230,398 177,870 176,110 70,431
NET ASSETS - AVAILABLE FOR BENEFITS
BEGINNING OF THE YEAR 440,117 434,841 695,198 669,488
-------------------------------------------------------
NET ASSETS - AVAILABLE FOR BENEFITS
END OF YEAR $ 670,515 $ 612,711 $ 871,308 $ 739,919
=======================================================
<CAPTION>
Participant Directed (continued)
------------------------------------------------------------------------
Warburg Warburg Corrpro Loans
Emer. Growth Intl Equity Stock To Participants Total
------------ ----------- ----- --------------- -----
<S> <C> <C> <C> <C> <C>
INCREASES IN ASSETS:
Contributions:
Participants $ 76,562 $ 22,664 $ 83,507 $ - $ 1,060,642
Employer 5,491 1,568 7,762 - 81,928
Rollover 15,406 3,971 11,798 - 91,074
Investment Income:
Interest - - - - 90,443
Interest on loans 2,148 103 1,063 28,927
Net gain/(loss) from change in market value of
securities held and from securities sold (930) 9,735 385,988 - 723,380
------------------------------------------------------------------------
Total increases 98,677 38,041 490,118 - 2,076,394
DECREASES IN ASSETS:
Distributions for withdrawals and terminations (23,757) (1,715) (287,878) (59,389) (1,122,123)
Administrative expenses (407) 19 1,242 (3,595) 1,621
------------------------------------------------------------------------
Total decreases (24,164) (1,696) (286,636) (62,984) (1,120,502)
TRANSFER OF ASSETS:
Loans to participants (6,582) (847) - 94,438 -
Loan repayments 6,876 319 2,803 (86,392) -
Interfund transfers (8,312) 7,113 100,656 - -
------------------------------------------------------------------------
Net transfers (8,018) 6,585 103,459 8,046 -
------------------------------------------------------------------------
NET INCREASE/(DECREASE) IN ASSETS 66,495 42,930 306,941 (54,938) 955,892
NET ASSETS - AVAILABLE FOR BENEFITS
BEGINNING OF THE YEAR 243,310 142,217 1,564,460 417,466 7,701,950
------------------------------------------------------------------------
NET ASSETS - AVAILABLE FOR BENEFITS
END OF YEAR $ 309,805 $ 185,147 $ 1,871,401 $ 362,528 $ 8,657,842
========================================================================
</TABLE>
The accompanying notes are an integral part of these financial statements.
7
<PAGE> 8
CORRPRO COMPANIES, INC.
PROFIT SHARING PLAN AND TRUST
STATEMENT OF CHANGES IN NET ASSETS AVAILABLE FOR BENEFITS
(WITH FUND INFORMATION)
FOR THE YEAR ENDING MARCH 31,1996
<TABLE>
<CAPTION>
Participant Directed
---------------------------------------------------------
NATIONAL CITY BANK
---------------------------------------------------------
Capital Corrpro
Equity Fixed Income Preservation Stock
------ ------------ ------------ -----
<S> <C> <C> <C> <C>
INCREASES IN ASSETS:
Contributions:
Participants $ 222,542 $ 173,886 $ 126,376 $ 191,981
Employer 17,307 16,489 8,469 14,538
Rollover 103,147 79,923 54,607 12,147
Investment Income :
Interest 47,413 118,159 47,648 13,354
Interest on loans - - - -
---------------------------------------------------------
Total increases 390,409 388,457 237,100 232,020
DECREASES IN ASSETS :
Distributions for withdrawals and terminations (502,212) (412,136) (117,767) (265,281)
Administrative expenses (19,682) (17,191) (2,594) (10,366)
Net gain/(loss) from change in market value of
securities held and from securities sold 363,079 124,988 - (2,736,283)
---------------------------------------------------------
Total decreases (158,815) (304,339) (120,361) (3,011,930)
TRANSFER OF ASSETS:
Loans to participants (106,903) (115,917) (42,828) -
Loan repayments 32,010 46,065 22,521 -
Interfund transfers (2,228,013) (2,033,963) (940,006) (1,085,134)
---------------------------------------------------------
Net transfers (2,302,906) (2,103,815) (960,313) (1,085,134)
---------------------------------------------------------
NET INCREASE/(DECREASE) IN ASSETS (2,071,312) (2,019,697) (843,574) (3,865,044)
NET ASSETS - AVAILABLE FOR BENEFITS
BEGINNING OF THE YEAR 2,071,312 2,019,697 843,574 3,865,044
---------------------------------------------------------
NET ASSETS - AVAILABLE FOR BENEFITS
END OF YEAR $ - $ - $ - $ -
=========================================================
<CAPTION>
Participant Directed (continued)
---------------------------------------
NATIONAL CITY BANK
---------------------------------------
Loan Cash Total
---- ---- -----
<S> <C> <C> <C>
INCREASES IN ASSETS:
Contributions:
Participants $ - $ 10,967 $ 725,752
Employer - (10,953) 45,850
Rollover - - 249,824
Investment Income :
Interest - 953 227,527
Interest on loans 14,097 4,412 18,509
---------------------------------------
Total increases 14,097 5,379 1,267,462
DECREASES IN ASSETS :
Distributions for withdrawals and terminations - (36,285) (1,333,681)
Administrative expenses - (10,852) (60,685)
Net gain/(loss) from change in market value of
securities held and from securities sold - (4) (2,248,220)
---------------------------------------
Total decreases - (47,141) (3,642,586)
TRANSFER OF ASSETS:
Loans to participants 240,491 25,157 -
Loan repayments (46,008) (54,588) -
Interfund transfers (492,203) 71,193 (6,708,126)
---------------------------------------
Net transfers (297,720) 41,762 (6,708,126)
---------------------------------------
NET INCREASE/(DECREASE) IN ASSETS (283,623) - (9,083,250)
---------------------------------------
NET ASSETS - AVAILABLE FOR BENEFITS
BEGINNING OF THE YEAR 283,623 - 9,083,250
NET ASSETS - AVAILABLE FOR BENEFITS
END OF YEAR $ - $ - $ -
=======================================
<CAPTION>
Participant Directed
--------------------------------------------------------------------------------
CIGNA
--------------------------------------------------------------------------------
Lifetime
Guaranteed ---------------------------------------------------------------------
Income Fund 20 30 40 50 60
----------- -- -- -- -- --
<S> <C> <C> <C> <C> <C> <C>
INCREASES IN ASSETS:
Contributions:
Participants $ 66,370 $ 6,962 $ 16,132 $ 13,331 $ 11,874 $ 3,019
Employer 5,837 639 1,301 1,107 810 223
Rollover - 164 19,007 2,376 - -
Investment Income :
Interest 20,460 24 368 260 421 36
Interest on loans - - - - - -
--------------------------------------------------------------------------------
Total increases 92,667 7,789 36,808 17,074 13,105 3,278
DECREASES IN ASSETS :
Distributions for withdrawals and terminations (3,300) - - - - -
Administrative expenses (7,430) (333) (813) (950) (1,112) (322)
Net gain/(loss) from change in market value of
securities held and from securities sold - 1,651 3,379 4,964 4,309 534
-------------------------------------------------------------------------------
Total decreases (10,730) 1,318 2,566 4,014 3,197 212
TRANSFER OF ASSETS:
Loans to participants (24,851) - - - - -
Loan repayments 13,818 47 1,112 729 318 72
Interfund transfers 2,000,952 87,763 196,121 254,851 303,691 88,932
-------------------------------------------------------------------------------
Net transfers 1,989,919 87,810 197,233 255,580 304,009 89,004
-------------------------------------------------------------------------------
NET INCREASE/(DECREASE) IN ASSETS 2,071,856 96,917 236,607 276,668 320,311 92,494
NET ASSETS - AVAILABLE FOR BENEFITS
BEGINNING OF THE YEAR - - - - - -
-------------------------------------------------------------------------------
NET ASSETS - AVAILABLE FOR BENEFITS
END OF YEAR $ 2,071,856 $ 96,917 $ 236,607 $ 276,668 $ 320,311 $ 92,494
===============================================================================
<CAPTION>
Participant Directed (continued)
------------------------------------------------------------------------------------
CIGNA
------------------------------------------------------------------------------------
Fidelity Vanguard Fidelity Twentieth Warburg Warburg
Growth & Inc. Wellington Magellan Century Ultra Emer. Growth Intl Equity
------------- ---------- -------- ------------- ------------ -----------
<S> <C> <C> <C> <C> <C> <C>
INCREASES IN ASSETS:
Contributions:
Participants $ 33,451 $ 21,040 $ 47,091 $ 42,563 $ 17,916 $ 6,236
Employer 2,554 1,532 3,921 3,025 1,456 441
Rollover 15,670 1,352 56,067 47,744 1,348 2,532
Investment Income :
Interest 425 448 1,156 765 563 15
Interest on loans - - - - - -
------------------------------------------------------------------------------------
Total increases 52,100 24,372 108,235 94,097 21,283 9,224
DECREASES IN ASSETS :
Distributions for withdrawals and terminations - - - - - -
Administrative expenses (325) (381) (580) (459) (179) (105)
Net gain/(loss) from change in market value of
securities held and from securities sold 17,481 11,226 8,031 5,095 228 4,014
------------------------------------------------------------------------------------
Total decreases 17,156 10,845 7,451 4,636 49 3,909
TRANSFER OF ASSETS:
Loans to participants (3,250) (1,135) (4,792) (157) (157) -
Loan repayments 801 740 2,653 810 778 29
Interfund transfers 373,310 400,019 581,651 570,102 221,357 129,055
------------------------------------------------------------------------------------
Net transfers 370,861 399,624 579,512 570,755 221,978 129,084
------------------------------------------------------------------------------------
NET INCREASE/(DECREASE) IN ASSETS 440,117 434,841 695,198 669,488 243,310 142,217
NET ASSETS - AVAILABLE FOR BENEFITS
BEGINNING OF THE YEAR - - - - - -
------------------------------------------------------------------------------------
NET ASSETS - AVAILABLE FOR BENEFITS
END OF YEAR $ 440,117 $ 434,841 $ 695,198 $ 669,488 $ 243,310 $ 142,217
====================================================================================
<CAPTION>
Participant Directed (continued)
----------------------------------------------------------
CIGNA
----------------------------------------------------------
Corrpro Loans to
Stock Participants Total Total
----- ------------ ----- -----
<S> <C> <C> <C> <C>
INCREASES IN ASSETS:
Contributions:
Participants $ 23,214 $ - $ 309,199 $ 1,034,951
Employer 1,924 - 24,770 70,620
Rollover 60,146 - 206,406 456,230
Investment Income :
Interest 580 - 25,521 253,048
Interest on loans - 5,095 5,095 23,604
----------------------------------------------------------
Total increases 85,864 5,095 570,991 1,838,453
DECREASES IN ASSETS :
Distributions for withdrawals and terminations - - (3,300) (1,336,981)
Administrative expenses (5,434) - (18,423) (79,108)
Net gain/(loss) from change in market value of
securities held and from securities sold 383,644 - 444,556 (1,803,664)
----------------------------------------------------------
Total decreases 378,210 - 422,833 (3,219,753)
TRANSFER OF ASSETS:
Loans to participants - 34,342 - -
Loan repayments 1,443 (23,350) - -
Interfund transfers 1,098,943 401,379 6,708,126 -
----------------------------------------------------------
Net transfers 1,100,386 412,371 6,708,126 -
----------------------------------------------------------
NET INCREASE/(DECREASE) IN ASSETS 1,564,460 417,466 7,701,950 (1,381,300)
----------------------------------------------------------
NET ASSETS - AVAILABLE FOR BENEFITS
BEGINNING OF THE YEAR - - - 9,083,250
----------------------------------------------------------
NET ASSETS - AVAILABLE FOR BENEFITS
END OF YEAR $ 1,564,460 $ 417,466 $ 7,701,950 $7,701,950
==========================================================
</TABLE>
The accompanying notes are an integral part of these financial statements.
8
<PAGE> 9
CORRPRO COMPANIES, INC.
-----------------------
PROFIT SHARING PLAN AND TRUST
-----------------------------
NOTES TO FINANCIAL STATEMENTS
-----------------------------
NOTE 1 - GENERAL DESCRIPTION OF THE PLAN:
- -----------------------------------------
General
-------
The Corrpro Companies, Inc. Profit Sharing Plan and Trust (the "Plan") was
organized and adopted on April 1, 1984 by Corrpro Companies, Inc. (the
"Company") to encourage employee savings and to provide retirement benefits to
participants and/or their beneficiaries. It is administered by an advisory
committee (the "Committee") appointed by the Company. The Plan is subject to the
provisions of the Employee Retirement Income Security Act of 1974 (ERISA).
Effective January 1, 1996, the Plan's trustee and the record keeper,
disbursement agent and investment agent of the Plan were changed from National
City Bank ("NCB") to Connecticut General Life Insurance Company ("CIGNA" or the
"Trustee"). Plan assets were transferred to CIGNA on January 2, 1996.
The Plan's trustee maintains all records of investment transactions and
determines the valuation of the investment portfolio.
The above description of the Plan provides only general information.
Participants should refer to the Plan agreement for a more complete description
of the Plan's provisions.
Contributions and Eligibility
-----------------------------
The Plan is a defined contribution plan and contains a 401 (k) provision which
permits employees to contribute elective deferrals of up to 15% of their
eligible compensation, subject to certain Internal Revenue Code (the "Code")
limitations. Employees may make elective deferral contributions on the first day
of the month following the completion of 30 days of service.
The Plan also provides for an employer contribution to be determined solely at
the discretion of the Board of Directors of the Company in accordance with the
limitations prescribed by the Plan. For employer contributions, all employees
are eligible to benefit beginning the first day of the month following the
completion of one month of service. Effective January 1, 1993, the Company began
to match 20% of employee contributions not to exceed 3% of the employee's
compensation.
With the consent of the Committee and Trustee, an employee may request that the
Plan accept all or part of such employee's interest in another qualified plan or
individual retirement account. Such rollover contributions are maintained and
invested by the Trustee in a similar manner as
9
<PAGE> 10
other participant accounts. The Plan's provisions with respect to rollover
contributions were designed to comply with the applicable sections of the Code.
Vesting
-------
Participants are immediately vested in their elective deferral contributions and
rollover contributions plus actual earnings thereon. Vesting in the remainder of
their accounts is based on years of service. A participant is vested based upon
a graduated schedule such that the participant is 100 percent vested after six
years of service or at the date of retirement, if earlier. If an employee
terminates employment prior to becoming 100 percent vested, his unvested portion
of employer contributions and interest thereon is forfeited.
Participant Direction of Investments
------------------------------------
The Plan provides that each participant or beneficiary may direct the investment
of his account balance among the following funds:
Investment options with CIGNA as of January 1, 1996 include the following:
Fidelity Growth & Income Fund
The Fidelity Growth & Income Fund is invested in a diversified
portfolio of equity and fixed-income securities.
Fidelity Magellan
The Fidelity Magellan is invested primarily in common stock and
securities convertible into common stocks of both domestic,
multinational and foreign companies. Current income is not a
consideration.
Guaranteed CIGNA Fund
The Guaranteed CIGNA Fund is invested primarily in commercial mortgages
and private bond placements. This fund has a full guarantee by CIGNA
against loss of principal and credited interest. This interest rate is
periodically reviewed and revised to reflect current investment
conditions.
Life 20, 30, 40, 50 & 60 Funds ("CIGNA LIFETIME FUNDS")
The "CIGNA LIFETIME FUNDS" are a family of five distinct investment
portfolios structured to maximize return and minimize risk over a
specific time period based on the participant's approximate age. Each
fund is primarily invested in a diversified mix of stock
10
<PAGE> 11
and bond funds, designed to fit the time horizons and risk tolerances
of investors at different stages of their lives.
Corrpro Companies, Inc. Common Stock Fund
The Corrpro Companies, Inc. Common Stock Fund is invested only in
common stock of the Company.
20th Century Ultra Fund
The 20th Century Ultra Fund is invested primarily in common stocks of
medium-sized companies that meet certain technical and fundamental
criteria.
Vanguard Wellington Fund
The Vanguard Wellington Fund is invested in a diversified portfolio of
common stocks and bonds designed primarily to seek a conservation of
principal and a reasonable income return.
Warburg Pincus Advisor Emerging Growth Fund
The Warburg Pincus Advisor Emerging Growth Fund is invested primarily
in common stocks and securities of small-to medium-sized companies for
capital growth. Current income is not a consideration.
Warburg Pincus Advisor International Equity Fund
The Warburg Pincus Advisor International Equity Fund is invested
primarily in common stocks of companies that are generally non-U.S.
based. Current income is not a consideration.
Currently, participating employees can elect to have their current contributions
invested in any of the funds available for employee contributions, or in any
combination of these funds on a daily basis in one percent increments .
Participating employees may also transfer amounts invested in any fund made
available for employee contributions on a daily basis in one percent increments.
Participant Accounts
--------------------
A separate account is maintained for each participant in the Plan, reflecting
contributions, investments, investment gains and losses, distributions, loans,
withdrawals and transfers. Each participant's account is credited with the
participant's elective deferral contribution and an allocation of (a) the
employer contributions, (b) plan earnings, and (c) forfeitures of terminated
participants' nonvested accounts. Allocations are based on participants' account
balances, as
11
<PAGE> 12
defined in the Plan.
Realized and unrealized appreciation (depreciation) and market value changes of
investments and investment income of the Plan are allocated on a pro-rata basis
to the accounts of participants on a daily basis.
Allocation of Employer Contributions and Forfeitures to Participant
-------------------------------------------------------------------
Accounts
--------
Any portion of a participant's account which is forfeited shall be held by the
Trustee for one year prior to being allocated among active Plan participants. In
any given year, the employer contributions and forfeitures, if any, are
allocated by the Trustee at the rate which each eligible participant's
compensation for the year bears to the total compensation for the Plan year.
During 1997 and 1996, the Plan had forfeiture credits in the amounts of $35,988
and $21,471, respectively.
Plan Withdrawals and Distributions
----------------------------------
Upon termination of service due to death, disability or retirement, an employee
may elect to receive either a lump-sum amount equal to the value of his account
or annual installments upon approval by the Trustee. All withdrawals and
disbursements are subject to federal income tax upon receipt.
In situations of severe financial hardship, a participant may apply in writing
to the Committee for the distribution of his vested account balance. Such
hardship withdrawals may result in tax consequences to the employee as defined
in the Code.
Termination Provisions
----------------------
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 of ERISA. In the event of the Plan's termination,
participants will become immediately and fully vested in their participant
accounts.
NOTE 2 - SIGNIFICANT ACCOUNTING POLICIES:
- -----------------------------------------
Basis of Accounting
-------------------
The accompanying financial statements are prepared on the accrual basis of
accounting.
12
<PAGE> 13
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 assets and liabilities 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.
Investments
-----------
The accompanying statement of net assets available for benefits reflect
investments at their fair values as of March 31, 1997 and 1996. The Plan's
trustee (CIGNA) maintains all records of investment transactions and determines
the valuation of the investment portfolio. Information with respect to: (1)
investments held and their market values as presented in the statements of
participants' equity and (2) unrealized appreciation and depreciation as
presented in the statements of changes in participants' equity has been
certified by the Plan's trustee as being complete and accurate.
The Plan has a guaranteed principal and interest contract, Guaranteed Income
Fund, with CIGNA. This contract is included in the financial statements at
contract value, which approximates fair value because it is fully
benefit-responsive. Contract value represents contributions made under the
contract, plus earnings, less Plan withdrawals and administrative expenses.
There are no reserves against contract value for credit risk of the contract
issuer or otherwise. The average yield and crediting interest rates were
approximately 5.1% for 1997 and 1996.
Security Transactions and Investment Income
-------------------------------------------
Purchases and sales of securities are reported on a trade date basis. Dividend
income is recorded on the ex-dividend date and interest income is recorded on
the accrual basis.
Proceeds from sales of securities, less market value at the beginning of the
Plan year or cost for purchases during the Plan year and net unrealized
appreciation (depreciation) based on market price fluctuations during the Plan
year or since date of acquisition, are included in the Statement of Changes in
Net Assets Available for Benefits.
Plan Expenses
-------------
Fees for legal counsel and auditors of the Plan are paid by the Company and thus
are not reflected in the accompanying financial statements. Costs specific to
various transactions are paid directly by the Plan and are reflected in the
accompanying statement.
13
<PAGE> 14
Amounts Due to Terminated Participants
--------------------------------------
Participants' equity includes $0 and $259,545 of amounts due to terminated
participants at March 31, 1997 and 1996, respectively. These amounts are
recorded as a liability in the Plan's Form 5500; however, these amounts are not
recorded as a liability in the accompanying statement of net assets available
for benefits in accordance with generally accepted accounting principles.
The following table reconciles participants' equity per the accompanying
financial statements to the Form 5500 as filed by the Company for the year ended
March 31, 1996:
<TABLE>
<CAPTION>
Net Assets
Benefits Available
Payable to Benefits for Benefits
Participants Incurred March 31,1996
----------------------------------------------------
<S> <C> <C> <C>
Per financial statements $ - $1,336,981 $ 7,701,950
Accrued benefit payments 259,545 259,545 (259,545)
----------------------------------------------------
Per Form 5500 $259,545 $1,596,526 $ 7,442,405
=====================================================
</TABLE>
NOTE 3 - TAX STATUS:
- --------------------
The Internal Revenue Service determined and informed the Company by a letter
dated July 31, 1995, that the Plan and related Trust are qualified under Section
401 (a) of the Code as amended by the 1986 Tax Reform Act and is, therefore, not
subject to tax under present income tax law. Management anticipates that the
Plan will continue its status as a qualified plan.
NOTE 4 - LOANS TO PARTICIPANTS:
- -------------------------------
Participants may borrow up to fifty percent of their vested account balances
subject to a maximum of $50,000. All loans bear interest at market rates and are
secured by the vested account balances of the respective participants.
NOTE 5 - SUBSEQUENT EVENTS:
- ---------------------------
Effective April 1, 1997, the Company's matching contributions increased from 20%
of employee contributions not to exceed 3% of compensation to 50% of employee
contributions not to exceed 4% of compensation.
14
<PAGE> 15
On July 16, 1997, Corrpro Companies, Inc. acquired 100% of the stock of Cathodic
Protection Services Company. It is currently anticipated that Cathodic
Protection Services Company's Plan will be terminated and its Plan assets will
be transferred to CIGNA during October, 1997.
15
<PAGE> 16
SIGNATURES
----------
Pursuant to the requirements of the Securities Exchange Act of 1934, the Plan
has duly caused this annual report to be signed on its behalf by the
undersigned, hereunto duly authorized.
CORRPRO COMPANIES, INC.
PROFIT SHARING PLAN AND TRUST
By: Corrpro Companies, Inc., as
Plan Administrator
Date: September 25, 1997 By: /s/ Neal R. Restivo
------------------------------
Neal R. Restivo
Sr. Vice President and
Chief Financial Officer
16
<PAGE> 17
CORRPRO COMPANIES, INC.
PROFIT SHARING PLAN AND TRUST
PLAN #001 EIN 34-1422570
LINE 27a SCHEDULE OF ASSETS HELD FOR INVESTMENT PURPOSES
MARCH 31,1997
<TABLE>
<CAPTION>
<S> <C> <C>
(b) (c)
(a) Identity of issue, borrower, lessor, or similar party Description of investment including maturity date,
rate of interest, collateral, par or maturity value
* CIGNA Guaranteed Income Fund Guaranteed Insurance Contract , 5.1 % interest rate
* CIGNA Lifetime20 Fund Mutual Fund
* CIGNA Lifetime30 Fund Mutual Fund
* CIGNA Lifetime40 Fund Mutual Fund
* CIGNA Lifetime50 Fund Mutual Fund
* CIGNA Lifetime50 Fund Mutual Fund
* Fidelity Growth and Income Fund Mutual Fund
* Vanguard Wellington Fund Mutual Fund
* Fidelity Magellan Fund Mutual Fund
* Twentieth Century Ultra Fund Mutual Fund
* Warburg Pincus Emerging Growth Fund Mutual Fund
* Warburg Pincus Advisor International Equity Fund Mutual Fund
* Corrpro Companies, Inc. Common Stock Common Stock
* Loans to Participants Participants loans with various rates of interest
from 8.02% to 10.10% and various maturities through
the year 2007
(d) (e)
Cost Current Value
1,870,399 1,870,399
73,656 76,254
254,131 269,153
297,983 319,597
328,601 352,193
98,526 104,861
581,013 654,217
561,456 602,799
777,529 852,755
663,645 722,172
290,333 299,593
170,288 182,762
1,172,791 1,858,032
0 ** 372,076
</TABLE>
* Party in Interest
** Cost of Participants loans are $0 as indicated in the instruction
to Form 5500, Line 27a.
See accompanying Independent Auditors Report.
17
<PAGE> 18
CORRPRO COMPANIES, INC.
PROFIT SHARING PLAN AND TRUST
PLAN #001 EIN 34-1422570
LINE 27d SCHEDULE OF REPORTABLE TRANSACTIONS
YEAR ENDED MARCH 31, 1997
(Category (iii) - A Series of Transactions Involving Securities of the Same
Issue that, when Aggregated Exceed 5% of the Current Value of Plan Assets as of
the Beginning of the Plan Year)
<TABLE>
<CAPTION>
Identity of Description Purchase Selling
Party Involved of Asset Price Price
-------------- ----------- -------- -------
<S> <C> <C> <C>
Corrpro Companies, Inc. Common Stock $293,525 $314,399
Connecticut General Life Twentieth Century Ultra 292,082 266,676
Connecticut General Life Fidelity Magellan 317,728 181,666
</TABLE>
<TABLE>
<CAPTION>
Current
Expenses Value of Asset Net
Lease Incurred Cost of on Transaction Gain
Rental With Transaction Asset Date (Loss)
- ------ ----------------- -------- -------------- -------
<S> <C> <C> <C> <C>
- - $221,865 314,399 $92,534
- - 235,761 266,676 30,915
- - 169,711 181,666 11,955
</TABLE>
See accompanying Independent Auditors Report
18
<PAGE> 19
INDEPENDENT AUDITORS' CONSENT
-----------------------------
The Board of Directors
Corrpro Companies, Inc.:
We consent to incorporation by reference in the Registration Statement (No.
33-74814) on Form S-8 of Corrpro Companies, Inc. pertaining to the Profit
Sharing Plan and Trust of Corrpro Companies, Inc. of our report dated August 8,
1997, with respect to the financial statements and schedules of the Corrpro
Companies, Inc. Profit Sharing Plan and Trust included in this Annual Report on
Form 11-K for the year ended March 31, 1997.
KPMG PEAT MARWICK LLP
Cleveland, Ohio
September 25, 1997
19
<PAGE> 20
CONSENT OF INDEPENDENT ACCOUNTANTS
----------------------------------
We hereby consent to the incorporation by reference in the Registration
Statement on Form S-8 (No. 33-74814) of our report dated September 13, 1996
appearing on page 4 of the financial statements of the Corrpro Companies, Inc.
Profit Sharing Plan and Trust on Form 11-K for the year ended March 31, 1997.
/s/ Price Waterhouse LLP
PRICE WATERHOUSE LLP
Cleveland, Ohio
September 25, 1997
20
