<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, 1998.
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
<PAGE> 2
CORRPRO COMPANIES, INC.
PROFIT SHARING PLAN AND TRUST
INDEX TO FINANCIAL STATEMENTS
<TABLE>
<CAPTION>
Page
----
<S> <C>
Report of Independent Accountant 3
Statement of Net Assets Available for Benefits at March 31, 1998 4
Statement of Net Assets Available for Benefits at March 31, 1997 5
Statement of Changes in Net Assets Available for Benefits for the
Year Ended March 31, 1998 6
Statement of Changes in Net Assets Available for Benefits for the
Year Ended March 31, 1997 7
Notes to Financial Statements 8
Supplemental Schedules:
Schedule of Assets Held for Investment Purposes at March 31, 1998 15
Schedule of Reportable Transactions for the Year Ended March 31, 1998 16
Consent of Independent Accountants - KPMG Peat Marwick LLP 17
</TABLE>
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:
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,
1998 and 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 the plan as of
March 31, 1998 and 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, 1998 and reportable transactions
for the year ended March 31, 1998 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. These supplemental schedules are the responsibility of
the Plan's management. 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
September 3, 1997
3
<PAGE> 4
CORRPRO COMPANIES, INC.
PROFIT SHARING PLAN AND TRUST
STATEMENT OF NET ASSETS AVAILABLE FOR BENEFITS (WITH FUND INFORMATION)
MARCH 31, 1998
<TABLE>
<CAPTION>
Participant Directed
------------------------------------------------------------------------
CIGNA
------------------------------------------------------------------------
Lifetime Funds
Guaranteed ----------------------------------------------------------
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 $2,652,967 $ -- $ -- $ -- $ -- $ --
Lifetime20 Fund -- 109,476 -- -- -- --
Lifetime30 Fund -- -- 346,515 -- -- --
Lifetime40 Fund -- -- -- 513,472 -- --
Lifetime50 Fund -- -- -- -- 467,787 --
Lifetime60 Fund -- -- -- -- -- 134,744
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 2,652,967 109,476 346,515 513,472 467,787 134,744
Receivables:
Loans to participants 2,418 143 346 138 902 28
Participants' contributions 24,021 2,856 4,310 9,002 4,526 1,734
Employer contributions 7,002 751 1,049 1,756 934 251
Rollover contributions 18,599 660 -- -- -- --
Accrued interest 555 49 68 84 194 18
------------------------------------------------------------------------
Total Receivables 52,595 4,459 5,773 10,980 6,556 2,031
------------------------------------------------------------------------
NET ASSETS AVAILABLE FOR BENEFITS $2,705,562 $113,935 $352,288 $524,452 $474,343 $136,775
========================================================================
<CAPTION>
Participant Directed
------------------------------------------------------------------------
Fidelity Vanguard Fidelity Twentieth Warburg
Assets Growth & Inc. Wellington Magellan Century Ultra Emer. Growth
------------- ---------- -------- ------------- ------------
<S> <C> <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 1,391,296 -- -- -- --
Vanguard Wellington Fund -- 958,653 -- -- --
Fidelity Magellan Fund -- -- 1,451,341 -- --
Twentieth Century Ultra Fund -- -- -- 1,254,599 --
Warburg Pincus Emerging Growth Fund -- -- -- -- 514,893
Warburg Pincus Advisor International Equity Fund -- -- -- -- --
Corrpro Companies, Inc. Common Stock -- -- -- -- --
Loans to Participants -- -- -- -- --
-----------------------------------------------------------------------
Total Investments 1,391,296 958,653 1,451,341 1,254,599 514,893
Receivables:
Loans to participants 1,884 414 1,082 428 388
Participants' contributions 21,653 11,253 16,469 15,999 7,734
Employer contributions 4,620 2,464 4,023 3,415 1,663
Rollover contributions 11,819 660 -- -- --
Accrued interest 335 213 372 208 111
-----------------------------------------------------------------------
Total Receivables 40,311 15,004 21,946 20,050 9,896
-----------------------------------------------------------------------
NET ASSETS AVAILABLE FOR BENEFITS $1,431,607 $973,657 $1,473,287 $1,274,649 $ 524,789
=======================================================================
<CAPTION>
Participant Directed
----------------------------------------------------------
Warburg Corrpro Loans to
Assets Intl Equity Stock Participants Total
----------- ----- ------------ -----
<S> <C> <C> <C> <C>
Investments at Fair Value:
Connecticut General (CIGNA)
Guaranteed Income Fund $ -- $ -- $ -- $ 2,652,967
Lifetime20 Fund -- -- -- 109,476
Lifetime30 Fund -- -- -- 346,515
Lifetime40 Fund -- -- -- 513,472
Lifetime50 Fund -- -- -- 467,787
Lifetime60 Fund -- -- -- 134,744
CIGNA Separate Accounts
Fidelity Growth and Income Fund -- -- -- 1,391,296
Vanguard Wellington Fund -- -- -- 958,653
Fidelity Magellan Fund -- -- -- 1,451,341
Twentieth Century Ultra Fund -- -- -- 1,254,599
Warburg Pincus Emerging Growth Fund -- -- -- 514,893
Warburg Pincus Advisor International Equity Fund 231,795 -- -- 231,795
Corrpro Companies, Inc. Common Stock -- 2,979,090 -- 2,979,090
Loans to Participants -- -- 390,372 390,372
----------------------------------------------------------
Total Investments 231,795 2,979,090 390,372 13,397,000
Receivables:
Loans to participants 121 494 (8,786) --
Participants' contributions 5,083 14,278 -- 138,918
Employer contributions 962 3,278 -- 32,168
Rollover contributions -- 8,099 -- 39,837
Accrued interest 12 169 -- 2,388
----------------------------------------------------------
Total Receivables 6,178 26,318 (8,786) 213,311
----------------------------------------------------------
NET ASSETS AVAILABLE FOR BENEFITS $237,973 $3,005,408 $ 381,586 $13,610,311
==========================================================
</TABLE>
The accompanying notes are an integral part of these financial statements.
<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
------------------------------------------------------------------------
Lifetime Funds
Guaranteed ----------------------------------------------------------
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
-------------------------------------------------------------------
Fidelity Vanguard Fidelity Twentieth Warburg
Assets Growth & Inc. Wellington Magellan Century Ultra Emer. Growth
------------- ---------- -------- ------------- ------------
<S> <C> <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 -- -- -- -- 299,593
Warburg Pincus Advisor International Equity Fund -- -- -- -- --
Corrpro Companies, Inc. Common Stock -- -- -- -- --
Loans to Participants -- -- -- -- --
---------------------------------------------------------------
Total Investments 654,217 602,799 852,755 722,172 299,593
Receivables:
Loans to participants 867 350 1,110 620 632
Participants' contributions 11,707 6,669 13,688 13,652 6,562
Employer contributions 849 487 1,068 888 469
Rollover contributions 2,642 2,197 2,032 2,032 2,033
Accrued interest 233 209 655 555 516
---------------------------------------------------------------
Total Receivables 16,298 9,912 18,553 17,747 10,212
---------------------------------------------------------------
NET ASSETS AVAILABLE FOR BENEFITS $670,515 $612,711 $871,308 $739,919 $309,805
===============================================================
<CAPTION>
Participant Directed
------------------------------------------------------------
Warburg Corrpro Loans to
Assets Intl Equity Stock Participants Total
----------- ----- ------------ -----
<S> <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
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 182,762 1,858,032 372,076 8,536,863
Receivables:
Loans to participants 92 332 (9,548) --
Participants' contributions 2,141 12,035 -- 97,886
Employer contributions 146 852 -- 7,229
Rollover contributions -- -- -- 12,038
Accrued interest 6 150 -- 3,826
------------------------------------------------------------
Total Receivables 2,385 13,369 (9,548) 120,979
------------------------------------------------------------
NET ASSETS AVAILABLE FOR BENEFITS $ 185,147 $1,871,401 $ 362,528 $8,657,842
============================================================
</TABLE>
The accompanying notes are an integral part of these financial statements.
<PAGE> 6
CORRPRO COMPANIES, INC.
PROFIT SHARING PLAN AND TRUST
STATEMENT OF CHANGES IN NET ASSETS AVAILABLE FOR BENEFITS
(WITH FUND INFORMATION)
FOR THE YEAR ENDED MARCH 31, 1998
<TABLE>
<CAPTION>
Participant Directed
-----------------------------------------------------------------------
CIGNA
-----------------------------------------------------------------------
Lifetime Funds
Guaranteed ---------------------------------------------------------
Income Fund 20 30 40 50 60
----------- -- -- -- -- --
<S> <C> <C> <C> <C> <C> <C>
INCREASES IN ASSETS:
Contributions:
Participants 303,313 33,860 52,835 75,086 57,035 15,509
Employer 85,942 9,110 13,443 15,165 11,774 2,702
Rollover 48,049 3,546 1,443 1,492 -- --
Investment Income:
Interest 118,898 -- -- -- -- --
Interest on loans 7,449 301 587 1,182 2,450 170
Adjustments (11,045) 12 25 22 20 3
Net gain/(loss) from change in market value of
securities held and from securities sold -- 23,886 76,370 91,744 90,370 21,044
------------------------------------------------------------------------
Total increases 552,606 70,715 144,703 184,691 161,649 39,428
DECREASES IN ASSETS:
Administrative expenses (2,746) (699) (677) (563) (388) (99)
Distributions for withdrawals and terminations (130,364) (20,191) (71,677) (17,148) (43,277) (407)
Correctve Distribution (7,977) (388) (430) (3,635) (3,408) (1,857)
------------------------------------------------------------------------
Total decreases (141,087) (21,278) (72,784) (21,346) (47,073) (2,363)
TRANSFER OF ASSETS:
Transferred Assets 949,623 -- -- -- -- --
Loans to participants (33,250) (9,578) (6,798) (16,824) (13,080) (278)
Loan repayments 31,769 1,883 3,874 3,705 9,135 323
Loan principal transfers from other Plan -- -- -- -- -- --
Interfund transfers (546,187) (6,502) 7,668 49,869 5,841 (6,468)
------------------------------------------------------------------------
Net transfers 401,955 (14,197) 4,744 36,750 1,896 (6,423)
Net Nonvested Activity 261 -- -- -- -- --
------------------------------------------------------------------------
NET INCREASE/(DECREASE) IN ASSETS 813,735 35,240 76,663 200,095 116,472 30,642
NET ASSETS - AVAILABLE FOR BENEFITS
Beginning of the year 1,891,827 78,695 275,625 324,357 357,871 106,133
------------------------------------------------------------------------
NET ASSETS - AVAILABLE FOR BENEFITS
End of Year 2,705,562 113,935 352,288 524,452 474,343 136,775
========================================================================
<CAPTION>
Participant Directed
---------------------------------------------------------------------------
Fidelity Vanguard Fidelity Twentieth Warburg
Growth & Inc. Wellington Magellan Century Ultra Emer. Growth
------------- ---------- -------- ------------- ------------
<S> <C> <C> <C> <C> <C>
INCREASES IN ASSETS:
Contributions:
Participants 203,268 108,485 169,383 164,316 74,310
Employer 46,293 25,044 42,651 36,422 17,190
Rollover 35,674 3,845 4,409 3,080 8,022
Investment Income:
Interest -- -- -- -- --
Interest on loans 2,193 1,762 4,385 2,545 1,454
Adjustments 368 236 3,697 1,822 2,467
Net gain/(loss) from change in market value of
securities held and from securities sold 350,050 207,572 408,128 353,393 139,070
----------------------------------------------------------------------------
Total increases 637,846 346,944 632,653 561,578 242,513
DECREASES IN ASSETS:
Administrative expenses (808) (408) (483) (478) (585)
Distributions for withdrawals and terminations (88,346) (57,085) (92,010) (89,771) (41,195)
Correctve Distribution (12,383) (4,380) (4,838) (7,600) (4,166)
----------------------------------------------------------------------------
Total decreases (101,537) (61,873) (97,331) (97,849) (45,946)
TRANSFER OF ASSETS:
Transferred Assets -- -- -- -- --
Loans to participants (40,923) (34,458) (13,234) (13,920) (16,110)
Loan repayments 17,697 7,931 13,591 55,063 4,933
Loan principal transfers from other Plan -- -- -- -- --
Interfund transfers 248,009 102,402 66,300 29,858 29,594
----------------------------------------------------------------------------
Net transfers 224,783 75,875 66,657 71,001 18,417
Net Nonvested Activity -- -- -- -- --
----------------------------------------------------------------------------
NET INCREASE/(DECREASE) IN ASSETS 761,092 360,946 601,979 534,730 214,984
NET ASSETS - AVAILABLE FOR BENEFITS
Beginning of the year 670,515 612,711 871,308 739,919 309,805
----------------------------------------------------------------------------
NET ASSETS - AVAILABLE FOR BENEFITS
End of Year 1,431,607 973,657 1,473,287 1,274,649 524,789
============================================================================
<CAPTION>
Participant Directed
------------------------------------------------------------
Warburg Corrpro Loans to
Intl Equity Stock Participants Total
----------- ----- ------------ -----
<S> <C> <C> <C> <C>
INCREASES IN ASSETS:
Contributions:
Participants 33,053 155,486 -- 1,445,939
Employer 7,526 36,380 -- 349,642
Rollover 7,938 26,212 -- 143,710
Investment Income:
Interest -- -- -- 118,898
Interest on loans 174 1,939 -- 26,591
Adjustments 2,585 306 -- 518
Net gain/(loss) from change in market value of
securities held and from securities sold 16,100 1,013,538 -- 2,791,265
------------------------------------------------------------
Total increases 67,376 1,233,861 -- 4,876,563
DECREASES IN ASSETS:
Administrative expenses (335) (2,626) -- (10,895)
Distributions for withdrawals and terminations (30,474) (81,090) (53,356) (816,391)
Correctve Distribution (1,735) (12,003) -- (64,800)
------------------------------------------------------------
Total decreases (32,544) (95,719) (53,356) (892,086)
TRANSFER OF ASSETS:
Transferred Assets -- -- -- 949,623
Loans to participants (12,009) -- 210,462 --
Loan repayments 1,700 4,813 (156,417) --
Loan principal transfers from other Plan -- -- 18,369 18,369
Interfund transfers 28,303 (8,687) -- --
------------------------------------------------------------
Net transfers 17,994 (3,874) 72,414 967,992
Net Nonvested Activity -- (261) -- --
------------------------------------------------------------
NET INCREASE/(DECREASE) IN ASSETS 52,826 1,134,007 19,058 4,952,469
NET ASSETS - AVAILABLE FOR BENEFITS
Beginning of the year 185,147 1,871,401 362,528 8,657,842
------------------------------------------------------------
NET ASSETS - AVAILABLE FOR BENEFITS
End of Year 237,973 3,005,408 381,586 13,610,311
============================================================
</TABLE>
The accompanying notes are an integral part of these financial statements.
<PAGE> 7
CORRPRO COMPANIES, INC.
PROFIT SHARING PLAN AND TRUST
STATEMENT OF CHANGES IN NET ASSETS AVAILABLE FOR BENEFITS
(WITH FUND INFORMATION)
FOR THE YEAR ENDED MARCH 31, 1997
<TABLE>
<CAPTION>
Participant Directed
-------------------------------------------------------------------------------
CIGNA
-------------------------------------------------------------------------------
Lifetime Funds
Guaranteed ---------------------------------------------------------------
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
Adjustments -- -- -- -- -- --
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:
Administrative expenses 2,354 (17) 221 544 932 218
Distributions for withdrawals and terminations (298,990) (66,466) (15,089) (26,537) (28,142) (3,173)
Correctve Distribution -- -- -- -- -- --
-------------------------------------------------------------------------------
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 Nonvested Activity -- -- -- -- -- --
-------------------------------------------------------------------------------
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
-------------------------------------------------------------------------
Fidelity Vanguard Fidelity Twentieth Warburg
Growth & Inc. Wellington Magellan Century Ultra Emer. Growth
------------- ---------- -------- ------------- ------------
<S> <C> <C> <C> <C> <C>
INCREASES IN ASSETS:
Contributions:
Participants 123,690 68,552 149,795 156,076 76,562
Employer 9,117 5,005 12,068 10,530 5,491
Rollover 6,182 4,537 18,543 14,044 15,406
Investment Income:
Interest -- -- -- -- --
Interest on loans 1,810 1,459 4,978 2,563 2,148
Adjustments -- -- -- -- --
Net gain/(loss) from change in market value of
securities held and from securities sold 70,374 57,717 63,211 68,278 (930)
-------------------------------------------------------------------------
Total increases 211,173 137,270 248,595 251,491 98,677
DECREASES IN ASSETS:
Administrative expenses (54) 125 150 (111) (407)
Distributions for withdrawals and terminations (39,621) (15,046) (63,379) (192,941) (23,757)
Correctve Distribution -- -- -- -- --
-------------------------------------------------------------------------
Total decreases (39,675) (14,921) (63,229) (193,052) (24,164)
TRANSFER OF ASSETS:
Loans to participants (10,096) (5,661) (12,252) (10,369) (6,582)
Loan repayments 9,493 5,039 10,755 2,896 6,876
Interfund transfers 59,503 56,143 (7,759) 19,465 (8,312)
-------------------------------------------------------------------------
Net transfers 58,900 55,521 (9,256) 11,992 (8,018)
Net Nonvested Activity -- -- -- -- --
-------------------------------------------------------------------------
NET INCREASE/(DECREASE) IN ASSETS 230,398 177,870 176,110 70,431 66,495
NET ASSETS - AVAILABLE FOR BENEFITS
Beginning of the year 440,117 434,841 695,198 669,488 243,310
-------------------------------------------------------------------------
NET ASSETS - AVAILABLE FOR BENEFITS
End of Year 670,515 612,711 871,308 739,919 309,805
=========================================================================
<CAPTION>
Participant Directed
------------------------------------------------------------
Warburg Corrpro Loans to
Intl Equity Stock Participants Total
----------- ----- ------------ -----
<S> <C> <C> <C> <C>
INCREASES IN ASSETS:
Contributions:
Participants 22,664 83,507 -- 1,060,642
Employer 1,568 7,762 -- 81,928
Rollover 3,971 11,798 -- 91,074
Investment Income:
Interest -- -- -- 90,443
Interest on loans 103 1,063 -- 28,927
Adjustments -- -- -- --
Net gain/(loss) from change in market value of
securities held and from securities sold 9,735 385,988 -- 723,380
------------------------------------------------------------
Total increases 38,041 490,118 -- 2,076,394
DECREASES IN ASSETS:
Administrative expenses 19 1,242 (3,595) 1,621
Distributions for withdrawals and terminations (1,715) (287,878) (59,389) (1,122,123)
Correctve Distribution -- -- -- --
------------------------------------------------------------
Total decreases (1,696) (286,636) (62,984) (1,120,502)
TRANSFER OF ASSETS:
Loans to participants (847) -- 94,438 --
Loan repayments 319 2,803 (86,392) --
Interfund transfers 7,113 100,656 -- --
------------------------------------------------------------
Net transfers 6,585 103,459 8,046 --
Net Nonvested Activity -- -- -- --
------------------------------------------------------------
NET INCREASE/(DECREASE) IN ASSETS 42,930 306,941 (54,938) 955,892
NET ASSETS - AVAILABLE FOR BENEFITS
Beginning of the year 142,217 1,564,460 417,466 7,701,950
------------------------------------------------------------
NET ASSETS - AVAILABLE FOR BENEFITS
End of Year 185,147 1,871,401 362,528 8,657,842
============================================================
</TABLE>
The accompanying notes are an integral part of these financial statements.
<PAGE> 8
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).
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. For the fiscal year 1997, the Company
matched 20% of the first 3% of the employee's contribution. Effective April 1,
1997, for the fiscal year 1998, the Company began to match 50% of the first 4%
of the employee's contribution .
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 other participant accounts. The
Plan's provisions with respect to rollover contributions were designed to comply
with the applicable sections of the Code.
8
<PAGE> 9
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 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 and bond
funds, designed to fit the time horizons and risk tolerances of
investors at different stages of their lives.
9
<PAGE> 10
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 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.
10
<PAGE> 11
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 1998 and 1997, the Plan had forfeiture credits in the amounts of $0 and
$35,988, 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.
11
<PAGE> 12
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 statements of net assets available for benefits reflect
investments at their fair values as of March 31, 1998 and 1997. 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 5.2% and 5.1% for 1998 and 1997.
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.
12
<PAGE> 13
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 - CPS PARTICIPANTS:
On July 16, 1997, the company acquired 100% of the stock of Cathodic Protection
Services Company. The Cathodic Protection Services Company's Plan was terminated
effective July 16, 1997 and its assets were transferred to the Plan on December
8, 1997.
13
<PAGE> 14
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 24, 1998 By: /s/ Neal R. Restivo
-----------------------------
Neal R. Restivo
Executive Vice President and
Chief Financial Officer
14
<PAGE> 15
Corrpro Companies, Inc.
Profit Sharing Plan And Trust
Plan #001 EIN 34-1422570
Line 27a Schedule of Assets Held for Investment Purposes
March 31, 1998
--------------
<TABLE>
<CAPTION>
(c)
Description of investment
(b) including maturity date,
Identity of issue, borrower, lessor, rate of interest, collateral, (d) (e)
(a) or similar party par or maturity value Cost Current Value
- --- ---------------------------------------------- ------------------------------ ---- -------------
<S> <C> <C> <C> <C>
Guaranteed Insurance Contract,
* CIGNA Guaranteed Income Fund 5.2 % interest rate 2,652,967 2,652,967
* CIGNA Lifetime20 Fund Mutual Fund 99,301 109,476
* CIGNA Lifetime30 Fund Mutual Fund 279,955 346,515
* CIGNA Lifetime40 Fund Mutual Fund 422,055 513,472
* CIGNA Lifetime50 Fund Mutual Fund 405,471 467,787
* CIGNA Lifetime60 Fund Mutual Fund 115,118 134,744
* Fidelity Growth and Income Fund Mutual Fund 1,027,304 1,391,296
* Vanguard Wellington Fund Mutual Fund 717,211 958,653
* Fidelity Magellan Fund Mutual Fund 1,019,528 1,451,341
* Twentieth Century Ultra Fund Mutual Fund 895,917 1,254,599
* Warburg Pincus Emerging Growth Fund Mutual Fund 391,875 514,893
* Warburg Pincus Advisor International Equity Fund Mutual Fund 206,627 231,795
* Corrpro Companies, Inc. Common Stock Common Stock 1,373,037 2,979,090
Participants loans with
various rates of interest
from 8.02% to 10.10%
and various maturity dates -- 390,372
</TABLE>
* Party in Interest
** Cost of Participants loans are $0 as indicated in the instructions
to Form 5000, Line 27a
See accompanying Independent Auditors Report
<PAGE> 16
Corrpro Companies, Inc.
Profit Sharing Plan And Trust
Plan #001 EIN 34-1422570
Schedule of Transactions or Series of Transactions in Excess of 5%
of the Current Value of Plan Assets
Line 27d Schedule of Reportable Transactions
Year Ended March 31, 1998
(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>
(c) (d)
(a) (b) Total Dollar Total Dollar (e)
Identity of Description Value of Value of Lease
Party Involved of Asset Purchases Sales Rental
-------------- -------- --------- ----- ------
<S> <C> <C> <C> <C>
Corrpro Companies, Inc. Common Stock $ 299,755 $180,333 $--
24,937 purchases, 15,671 sales
Connecticut General Life Fidelity G&I Account 602,059 188,055 --
13,440 purchases, 4,600 sales
Connecticut General Life Fidelity Magellan 375,025 168,239 --
2,987 purchases, 1,357 sales
Connecticut General Life 20th Century Ultra 368,649 173,211 --
9,334 purchases, 4,400 sales
Connecticut General Life Guaranteed Income Fund 1,457,180 793,511 --
38 purchases, 109 sales
<CAPTION>
(h)
(f) Current (i)
Expenses (g) Value of Asset Net
Incurred Cost of on Transaction Gain or
With Transaction Asset Date (Loss)
---------------- ----- ---- ------
<S> <C> <C> <C>
$-- $ 99,509 $180,333 $80,824
-- 155,768 188,055 32,287
-- 133,027 168,239 35,212
-- 136,377 173,211 36,834
-- 793,511 793,511 --
</TABLE>
See accompanying Independent Auditors Report
<PAGE> 17
INDEPENDENT AUDITORS CONSENT
To 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 September
3, 1998, 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, 1998.
KPMG Peat Marwick LLP
Cleveland, Ohio
September 3, 1998
17
