<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, 1999.
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
----
Report of Independent Accountants 3
Statement of Net Assets Available for Benefits at March 31, 1999 4
Statement of Net Assets Available for Benefits at March 31, 1998 5
Statement of Changes in Net Assets Available for Benefits for the
Year Ended March 31, 1999 6
Statement of Changes in Net Assets Available for Benefits for the
Year Ended March 31, 1998 7
Notes to Financial Statements 8
Supplemental Schedules:
Schedule of Assets Held for Investment Purposes at March 31, 1999 16
Schedule of Reportable Transactions for the Year Ended March 31, 1999 17
Consent of Independent Accountants - KPMG LLP 18
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 statements of net assets available for benefits
of the Corrpro Companies, Inc. Profit Sharing Plan and Trust as of March 31,
1999 and 1998, and the related statements of changes in net assets available for
benefits for the years then ended. These financial statements are the
responsibility of the plan's management. Our responsibility is to express an
opinion on these financial statements based on our audits.
We conducted our audits in accordance with generally accepted auditing
standards. Those standards require that we plan and perform the audit to obtain
reasonable assurance about whether the financial statements are free of material
misstatement. An audit includes examining, on a test basis, evidence supporting
the amounts and disclosures in the financial statements. An audit also includes
assessing the accounting principles used and significant estimates made by
management, as well as evaluating the overall financial statement presentation.
We believe that our audits provide a reasonable basis for our opinion.
In our opinion, the financial statements referred to above present fairly, in
all material respects, the net assets available for benefits of the plan as of
March 31, 1999 and 1998, and the changes in net assets available for benefits
for the years then ended in conformity with generally accepted accounting
principles.
Our audits were 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, 1999 and reportable transactions for the
year ended March 31, 1999 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 audits of the basic
financial statements and, in our opinion, are fairly stated in all material
respects in relation to the basic financial statements taken as a whole.
KPMG LLP
Cleveland, Ohio
September 9, 1999
3
<PAGE> 4
CORRPRO COMPANIES, INC.
PROFIT SHARING PLAN AND TRUST
STATEMENT OF NET ASSETS AVAILABLE FOR BENEFITS (WITH FUND INFORMATION)
MARCH 31, 1999
<TABLE>
<CAPTION>
Participant Directed
-------------------------------------------------
CIGNA
-------------------------------------------------
Guaranteed Lifetime Funds
------------------------------------
Assets Income Fund 20 30 40
------ ----------- -- -- --
<S> <C> <C> <C> <C>
Investments at Fair Value:
Connecticut General (CIGNA)
Guaranteed Income Fund $2,906,303 $ - $ - $ -
Lifetime20 Fund - 154,145 - -
Lifetime30 Fund - - 382,876 -
Lifetime40 Fund - - - 582,263
Lifetime50 Fund - - - -
Lifetime60 Fund - - - -
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 2,906,303 154,145 382,876 582,263
Receivables:
Loans to participants 3,093 157 1,965 270
Participants' contributions 20,560 3,690 4,130 4,555
Employer contributions 5,739 829 1,027 1,067
Accrued interest 633 45 37 123
-------------------------------------------------
Total Receivables 30,025 4,721 7,159 6,015
-------------------------------------------------
NET ASSETS AVAILABLE FOR BENEFITS $2,936,328 $ 158,866 $ 390,035 $ 588,278
=================================================
</TABLE>
<TABLE>
<CAPTION>
Participant Directed
----------------------------------------------------
CIGNA
-------------------------
Lifetime Funds Fidelity Vanguard
-------------------------
Assets 50 60 Growth & Inc. Wellington
------ -- -- ------------- ----------
<S> <C> <C> <C> <C>
Investments at Fair Value:
Connecticut General (CIGNA)
Guaranteed Income Fund $ - $ - $ - $ -
Lifetime20 Fund - - - -
Lifetime30 Fund - - - -
Lifetime40 Fund - - - -
Lifetime50 Fund 537,788 - - -
Lifetime60 Fund - 168,786 - -
CIGNA Separate Accounts
Fidelity Growth and Income Fund - - 1,921,197 -
Vanguard Wellington Fund - - - 1,094,654
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 537,788 168,786 1,921,197 1,094,654
Receivables:
Loans to participants 111 90 882 569
Participants' contributions 3,358 1,724 26,009 11,202
Employer contributions 802 255 5,907 2,477
Accrued interest 43 18 292 223
----------------------------------------------------
Total Receivables 4,314 2,087 33,090 14,471
----------------------------------------------------
NET ASSETS AVAILABLE FOR BENEFITS $ 542,102 $ 170,873 $1,954,287 $1,109,125
====================================================
</TABLE>
<TABLE>
<CAPTION>
Participant Directed
----------------------------------------------------
Fidelity Twentieth Warburg Warburg
Assets Magellan Century Ultra Emer. Growth Intl Equity
------ -------- ------------- ------------ -----------
<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 - - - -
Vanguard Wellington Fund - - - -
Fidelity Magellan Fund 2,099,310 - - -
Twentieth Century Ultra Fund - 1,977,576 - -
Warburg Pincus Emerging Growth Fund - - 468,689 -
Warburg Pincus Advisor International Equity Fund - - - 231,101
Corrpro Companies, Inc. Common Stock - - - -
Loans to Participants - - - -
----------------------------------------------------
Total Investments 2,099,310 1,977,576 468,689 231,101
Receivables:
Loans to participants 1,122 824 400 153
Participants' contributions 22,155 21,170 8,011 3,788
Employer contributions 5,507 4,781 1,818 865
Accrued interest 388 403 184 43
----------------------------------------------------
Total Receivables 29,172 27,178 10,413 4,849
----------------------------------------------------
NET ASSETS AVAILABLE FOR BENEFITS $2,128,482 $2,004,754 $ 479,102 $ 235,950
====================================================
</TABLE>
<TABLE>
<CAPTION>
Participant Directed
-----------------------------------------
Corrpro Loans to
Assets Stock Participants Total
------ ----- ------------ -----
<S> <C> <C> <C>
Investments at Fair Value:
Connecticut General (CIGNA)
Guaranteed Income Fund $ - $ - $ 2,906,303
Lifetime20 Fund - - 154,145
Lifetime30 Fund - - 382,876
Lifetime40 Fund - - 582,263
Lifetime50 Fund - - 537,788
Lifetime60 Fund - - 168,786
CIGNA Separate Accounts
Fidelity Growth and Income Fund - - 1,921,197
Vanguard Wellington Fund - - 1,094,654
Fidelity Magellan Fund - - 2,099,310
Twentieth Century Ultra Fund - - 1,977,576
Warburg Pincus Emerging Growth Fund - - 468,689
Warburg Pincus Advisor International Equity Fund - - 231,101
Corrpro Companies, Inc. Common Stock 2,558,883 - 2,558,883
Loans to Participants - 443,850 443,850
----------------------------------------
Total Investments 2,558,883 443,850 15,527,421
Receivables:
Loans to participants 441 (10,077) -
Participants' contributions 11,537 - 141,889
Employer contributions 2,978 - 34,052
Accrued interest 165 - 2,597
----------------------------------------
Total Receivables 15,121 (10,077) 178,538
----------------------------------------
NET ASSETS AVAILABLE FOR BENEFITS $2,574,004 $ 433,773 $15,705,959
========================================
</TABLE>
The accompanying notes are an integral part of these financial statements.
4
<PAGE> 5
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
---------------------------------------------------------------
Guaranteed Lifetime Funds
---------------------------------------------------------------
Assets Income Fund 20 30 40 50
----------- -- -- -- --
<S> <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 -- -- -- -- --
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
Receivables:
Loans to participants 2,418 143 346 138 902
Participants' contributions 24,021 2,856 4,310 9,002 4,526
Employer contributions 7,002 751 1,049 1,756 934
Rollover contributions 18,599 660 -- -- --
Accrued interest 555 49 68 84 194
---------------------------------------------------------------
Total Receivables 52,595 4,459 5,773 10,980 6,556
---------------------------------------------------------------
NET ASSETS AVAILABLE FOR BENEFITS $ 2,705,562 $ 113,935 $ 352,288 $ 524,452 $ 474,343
===============================================================
</TABLE>
<TABLE>
<CAPTION>
Participant Directed
-----------------------------------------------------------------
CIGNA
--------------
Lifetime Funds Fidelity Vanguard Fidelity Twentieth
--------------
Assets 60 Growth & Inc. Wellington Magellan Century Ultra
-- ------------------------ -------- -------------
<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 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 -- -- -- -- --
Warburg Pincus Advisor International Equity Fund -- -- -- -- --
Corrpro Companies, Inc. Common Stock -- -- -- -- --
Loans to Participants -- -- -- -- --
-----------------------------------------------------------------
Total Investments 134,744 1,391,296 958,653 1,451,341 1,254,599
Receivables:
Loans to participants 28 1,884 414 1,082 428
Participants' contributions 1,734 21,653 11,253 16,469 15,999
Employer contributions 251 4,620 2,464 4,023 3,415
Rollover contributions -- 11,819 660 -- --
Accrued interest 18 335 213 372 208
-----------------------------------------------------------------
Total Receivables 2,031 40,311 15,004 21,946 20,050
-----------------------------------------------------------------
NET ASSETS AVAILABLE FOR BENEFITS $ 136,775 $ 1,431,607 $ 973,657 $ 1,473,287 $ 1,274,649
=================================================================
</TABLE>
<TABLE>
<CAPTION>
Participant Directed
-------------------------------------------------
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 $ -- $ -- $ -- $ -- $ 2,652,967
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 -- -- -- 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 514,893 231,795 2,979,090 390,372 13,397,000
Receivables:
Loans to participants 388 121 494 (8,786) --
Participants' contributions 7,734 5,083 14,278 -- 138,918
Employer contributions 1,663 962 3,278 -- 32,168
Rollover contributions -- -- 8,099 -- 39,837
Accrued interest 111 12 169 -- 2,388
-----------------------------------------------------------------
Total Receivables 9,896 6,178 26,318 (8,786) 213,311
-----------------------------------------------------------------
NET ASSETS AVAILABLE FOR BENEFITS $ 524,789 $ 237,973 $ 3,005,408 $ 381,586 $13,610,311
=================================================================
</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 CHANGES IN NET ASSETS AVAILABLE FOR BENEFITS (WITH FUND
INFORMATION) FOR THE YEAR ENDED MARCH 31, 1999
<TABLE>
<CAPTION>
Participant Directed
-----------------------------------------------------------------------------
CIGNA
----------------------------------------------------------------------------
Guaranteed Lifetime Funds
------------------------------------------------------------
Income Fund 20 30 40 50
----------- -- -- -- --
INCREASES IN ASSETS:
<S> <C> <C> <C> <C> <C>
Contributions:
Participants $ 277,950 $ 43,515 $ 49,461 $ 60,816 $ 46,472
Employer 83,419 9,964 12,020 14,165 10,716
Rollover (3,315) 381 241 120 -
Investment Income:
Interest 139,446 - - - -
Interest on loans 8,044 587 718 1,377 1,696
Adjustments - - - - -
Net gain/(loss) from change in market value of
securities held and from securities sold 14,880 6,380 14,670 33,546 29,018
----------------------------------------------------------------------------
Total increases 520,424 60,827 77,110 110,024 87,902
DECREASES IN ASSETS:
Administrative expenses (3,705) (904) (441) (569) (210)
Distributions for withdrawals and terminations (453,782) (13,055) (46,402) (14,310) (15,751)
Corrective Distribution - - - - -
Funds for benefit payments - - - - -
----------------------------------------------------------------------------
Total decreases (457,487) (13,959) (46,843) (14,879) (15,961)
TRANSFER OF ASSETS:
Loans to participants (46,567) (1,312) (1,445) (8,135) (11,827)
Loan repayments 29,579 1,815 8,574 2,846 7,568
Loan Notes Distributed - - - - -
Interfund transfers 184,817 (2,440) 351 (26,030) 77
----------------------------------------------------------------------------
Net transfers 167,829 (1,937) 7,480 (31,319) (4,182)
----------------------------------------------------------------------------
NET INCREASE/(DECREASE) IN ASSETS 230,766 44,931 37,747 63,826 67,759
NET ASSETS - AVAILABLE FOR BENEFITS
Beginning of the year 2,705,562 113,935 352,288 524,452 474,343
----------------------------------------------------------------------------
NET ASSETS - AVAILABLE FOR BENEFITS
End of Year $ 2,936,328 $ 158,866 $ 390,035 $ 588,278 $ 542,102
============================================================================
</TABLE>
<TABLE>
<CAPTION>
Participant Directed
------------------------------------------------------------------------------
CIGNA
-------------
Lifetime Funds Fidelity Vanguard Fidelity Twentieth
-------------
60 Growth & Inc. Wellington Magellan Century Ultra
-- ------------- ---------- -------- -------------
INCREASES IN ASSETS:
<S> <C> <C> <C> <C> <C>
Contributions:
Participants $ 20,686 $ 267,835 $ 133,752 $ 220,711 $ 221,549
Employer 3,040 61,141 29,777 56,601 49,586
Rollover - (734) 12,641 9,305 3,708
Investment Income:
Interest - - - - -
Interest on loans 231 4,312 2,761 4,333 3,261
Adjustments - - - - -
Net gain/(loss) from change in market value of
securities held and from securities sold 11,147 260,038 41,925 413,551 405,807
------------------------------------------------------------------------------
Total increases 35,104 592,592 220,856 704,501 683,911
DECREASES IN ASSETS:
Administrative expenses (64) (960) (461) (726) (508)
Distributions for withdrawals and terminations (1,578) (113,024) (68,061) (76,285) (88,773)
Corrective Distribution - - - - -
Funds for benefit payments - - - (403) (420)
------------------------------------------------------------------------------
Total decreases (1,642) (113,984) (68,522) (77,414) (89,701)
TRANSFER OF ASSETS:
Loans to participants (217) (31,538) (12,016) (44,276) (25,560)
Loan repayments 853 22,633 9,211 13,835 7,405
Loan Notes Distributed - - - - -
Interfund transfers - 52,977 (14,061) 58,549 154,050
------------------------------------------------------------------------------
Net transfers 636 44,072 (16,866) 28,108 135,895
------------------------------------------------------------------------------
NET INCREASE/(DECREASE) IN ASSETS 34,098 522,680 135,468 655,195 730,105
NET ASSETS - AVAILABLE FOR BENEFITS
Beginning of the year 136,775 1,431,607 973,657 1,473,287 1,274,649
------------------------------------------------------------------------------
NET ASSETS - AVAILABLE FOR BENEFITS
End of Year $ 170,873 $ 1,954,287 $ 1,109,125 $ 2,128,482 $ 2,004,754
==============================================================================
</TABLE>
<TABLE>
<CAPTION>
Participant Directed
------------------------------------------------------------
Warburg Warburg Corrpro Loans to
Emer. Growth Intl Equity Stock Participants Total
------------ ----------- ----- ------------ -----
INCREASES IN ASSETS:
<S> <C> <C> <C> <C> <C>
Contributions:
Participants $ 93,192 $ 39,236 $ 166,701 $ - $ 1,641,876
Employer 21,576 8,930 41,706 - 402,641
Rollover 15,474 993 13,163 - 51,977
Investment Income:
Interest - - - - 139,446
Interest on loans 1,590 278 2,040 - 31,228
Adjustments - - - - -
Net gain/(loss) from change in market value of
securities held and from securities sold (60,284) (26,964) (102,326) - 1,041,388
----------------------------------------------------------------------------
Total increases 71,548 22,473 121,284 - 3,308,556
DECREASES IN ASSETS:
Administrative expenses (398) (505) (4,126) - (13,577)
Distributions for withdrawals and terminations (36,261) (41,669) (204,125) - (1,173,076)
Corrective Distribution - - - - -
Funds for benefit payments - - (366) - (1,189)
----------------------------------------------------------------------------
Total decreases (36,659) (42,174) (208,617) - (1,187,842)
TRANSFER OF ASSETS:
Loans to participants (11,019) (3,588) - 197,500 -
Loan repayments 6,743 1,135 8,050 (120,247) -
Loan Notes Distributed - - - (25,066) (25,066)
Interfund transfers (76,300) 20,131 (352,121) - -
----------------------------------------------------------------------------
Net transfers (80,576) 17,678 (344,071) 52,187 (25,066)
----------------------------------------------------------------------------
NET INCREASE/(DECREASE) IN ASSETS (45,687) (2,023) (431,404) 52,187 2,095,648
NET ASSETS - AVAILABLE FOR BENEFITS
Beginning of the year 524,789 237,973 3,005,408 381,586 13,610,311
----------------------------------------------------------------------------
NET ASSETS - AVAILABLE FOR BENEFITS
End of Year $ 479,102 $ 235,950 $ 2,574,004 $ 433,773 $ 15,705,959
============================================================================
</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 FUND
INFORMATION) FOR THE YEAR ENDED MARCH 31, 1998
<TABLE>
<CAPTION>
Participant Directed
------------------------------------------------------------------------------
CIGNA
------------------------------------------------------------------------------
Guaranteed Lifetime Funds
-------------------------------------------------------------
Income Fund 20 30 40 50
----------- -- -- -- --
INCREASES IN ASSETS:
<S> <C> <C> <C> <C> <C>
Contributions:
Participants $ 303,313 $ 33,860 $ 52,835 $ 75,086 $ 57,035
Employer 85,942 9,110 13,443 15,165 11,774
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
Adjustments - - - - -
Net gain/(loss) from change in market value of
securities held and from securities sold (11,045) 23,898 76,395 91,766 90,390
------------------------------------------------------------------------------
Total increases 552,606 70,715 144,703 184,691 161,649
DECREASES IN ASSETS:
Administrative expenses (2,746) (699) (677) (563) (388)
Distributions for withdrawals and terminations (138,341) (20,579) (72,107) (20,783) (46,685)
Corrective Distribution - - - - -
------------------------------------------------------------------------------
Total decreases (141,087) (21,278) (72,784) (21,346) (47,073)
TRANSFER OF ASSETS:
Transferred Assets 949,623 - - - -
Loans to participants (33,250) (9,578) (6,798) (16,824) (13,080)
Loan repayments 31,769 1,883 3,874 3,705 9,135
Loan principal transfers from other plan - - - - -
Interfund transfers (546,187) (6,502) 7,668 49,869 5,841
------------------------------------------------------------------------------
Net transfers 401,955 (14,197) 4,744 36,750 1,896
Net Nonvested Activity 261 - - - -
------------------------------------------------------------------------------
NET INCREASE/(DECREASE) IN ASSETS 813,735 35,240 76,663 200,095 116,472
NET ASSETS - AVAILABLE FOR BENEFITS
Beginning of the year 1,891,827 78,695 275,625 324,357 357,871
------------------------------------------------------------------------------
NET ASSETS - AVAILABLE FOR BENEFITS
End of Year $ 2,705,562 $ 113,935 $ 352,288 $ 524,452 $ 474,343
==============================================================================
</TABLE>
<TABLE>
<CAPTION>
Participant Directed
-------------------------------------------------------------------------------
CIGNA
-------------
Lifetime Funds Fidelity Vanguard Fidelity Twentieth
-------------
60 Growth & Inc. Wellington Magellan Century Ultra
-- ------------- ---------- -------- -------------
INCREASES IN ASSETS:
<S> <C> <C> <C> <C> <C>
Contributions:
Participants $ 15,509 $ 203,268 $ 108,485 $ 169,383 $ 164,316
Employer 2,702 46,293 25,044 42,651 36,422
Rollover - 35,674 3,845 4,409 3,080
Investment Income:
Interest - - - - -
Interest on loans 170 2,193 1,762 4,385 2,545
Adjustments - - - - -
Net gain/(loss) from change in market value of
securities held and from securities sold 21,047 350,418 207,808 411,825 355,215
------------------------------------------------------------------------------
Total increases 39,428 637,846 346,944 632,653 561,578
DECREASES IN ASSETS:
Administrative expenses (99) (808) (408) (483) (478)
Distributions for withdrawals and terminations (2,264) (100,729) (61,465) (96,848) (97,371)
Corrective Distribution - - - - -
------------------------------------------------------------------------------
Total decreases (2,363) (101,537) (61,873) (97,331) (97,849)
TRANSFER OF ASSETS:
Transferred Assets - - - - -
Loans to participants (278) (40,923) (34,458) (13,234) (13,920)
Loan repayments 323 17,697 7,931 13,591 55,063
Loan principal transfers from other plan - - - - -
Interfund transfers (6,468) 248,009 102,402 66,300 29,858
------------------------------------------------------------------------------
Net transfers (6,423) 224,783 75,875 66,657 71,001
Net Nonvested Activity - - - - -
------------------------------------------------------------------------------
NET INCREASE/(DECREASE) IN ASSETS 30,642 761,092 360,946 601,979 534,730
NET ASSETS - AVAILABLE FOR BENEFITS
Beginning of the year 106,133 670,515 612,711 871,308 739,919
------------------------------------------------------------------------------
NET ASSETS - AVAILABLE FOR BENEFITS
End of Year $ 136,775 $ 1,431,607 $ 973,657 $ 1,473,287 $ 1,274,649
==============================================================================
</TABLE>
<TABLE>
<CAPTION>
Participant Directed
--------------------------------------------------------------
Warburg Warburg Corrpro Loans to
Emer. Growth Intl Equity Stock Participants Total
------------ ----------- ----- ------------ -----
INCREASES IN ASSETS:
<S> <C> <C> <C> <C> <C>
Contributions:
Participants $ 74,310 $ 33,053 $ 155,486 $ - $ 1,445,939
Employer 17,190 7,526 36,380 - 349,642
Rollover 8,022 7,938 26,212 - 143,710
Investment Income:
Interest - - - - 118,898
Interest on loans 1,454 174 1,939 - 26,591
Adjustments - - - - -
Net gain/(loss) from change in market value of
securities held and from securities sold 141,537 18,685 1,013,844 - 2,791,783
----------------------------------------------------------------------------
Total increases 242,513 67,376 1,233,861 - 4,876,563
DECREASES IN ASSETS:
Administrative expenses (585) (335) (2,626) - (10,895)
Distributions for withdrawals and terminations (45,361) (32,209) (93,093) (53,356) (881,191)
Corrective Distribution - - - - -
----------------------------------------------------------------------------
Total decreases (45,946) (32,544) (95,719) (53,356) (892,086)
TRANSFER OF ASSETS:
Transferred Assets - - - - 949,623
Loans to participants (16,110) (12,009) - 210,462 -
Loan repayments 4,933 1,700 4,813 (156,417) -
Loan principal transfers from other plan - - - 18,369 18,369
Interfund transfers 29,594 28,303 (8,687) - -
----------------------------------------------------------------------------
Net transfers 18,417 17,994 (3,874) 72,414 967,992
Net Nonvested Activity - - (261) - -
----------------------------------------------------------------------------
NET INCREASE/(DECREASE) IN ASSETS 214,984 52,826 1,134,007 19,058 4,952,469
NET ASSETS - AVAILABLE FOR BENEFITS
Beginning of the year 309,805 185,147 1,871,401 362,528 8,657,842
----------------------------------------------------------------------------
NET ASSETS - AVAILABLE FOR BENEFITS
End of Year $ 524,789 $ 237,973 $ 3,005,408 $ 381,586 $ 13,610,311
============================================================================
</TABLE>
The accompanying notes are an integral part of these financial statements.
7
<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 1999 and 1998, the
Company matched 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% vested after six years of
service or at the date of retirement, if earlier. If an employee terminates
employment prior to becoming 100% 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 their account balance among the following funds:
Investment options include the following:
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.
Fidelity Growth & Income Fund
The Fidelity Growth & Income Fund is invested in a diversified
portfolio of equity and fixed-income securities.
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.
9
<PAGE> 10
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.
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.
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.
Corrpro Companies, Inc. Common Stock Fund
The Corrpro Companies, Inc. Common Stock Fund is invested only in
common stock of the Company.
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.
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.
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.
11
<PAGE> 12
Investments
- -----------
The accompanying statements of net assets available for benefits reflect
investments at their fair values as of March 31, 1999 and 1998. 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% for 1999 and 1998.
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 statements.
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. The Plan has been amended since
receiving the determination letter. However, the Plan administrator believes
that the Plan is designed and is currently being operated in compliance with the
applicable requirements of the IRC.
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 ("CPS") which had adopted a similar plan. Subsequent to the
acquisition, the assets comprising the balances of CPS participants were
transferred to the Plan.
NOTE 6 - RECONCILIATION OF FINANCIAL STATEMENTS TO FORM 5500:
- -------------------------------------------------------------
The following is a reconciliation of net assets available for plan benefits per
the financial statements to the Form 5500 as of March 31, 1999 and 1998:
<TABLE>
<CAPTION>
1999 1998
----------- -----------
<S> <C> <C>
Net assets available for plan benefits per financial
statements $15,705,959 $13,610,311
Amounts allocated to receivables (178,538) (213,311)
----------- -----------
Net assets available for plan benefits per Form 5500 $15,527,421 $13,397,000
=========== ===========
</TABLE>
13
<PAGE> 14
The following is a reconciliation of income per the financial statements to the
Form 5500 as of March 31, 1999 and 1998:
<TABLE>
<CAPTION>
1999 1998
---------- -----------
<S> <C> <C>
Income per financial statements $3,308,556 $4,876,563
Add accrued receivables beginning of year 213,311 0
Less accrued receivables end of year 178,538 213,311
---------- ----------
Income per Form 5500 $3,343,329 $4,663,252
========== ==========
</TABLE>
NOTE 7 - SUBSEQUENT EVENT:
- --------------------------
The Company amended the Plan generally effective subsequent to year end. The
amendment affects Company matching contributions and the vesting schedule.
Effective April 1, 1999 the Company's matching contribution percentage will be
increased from 50% to 100% on the first 3% of a participant's contribution and
50% on the next 2% of a participant's contribution of base salary. Also
effective April 1, 1999, a new vesting schedule was adopted whereby current
employee participants will immediately become 100% vested in matching
contributions.
14
<PAGE> 15
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 27, 1999 By: /s/ Neal R. Restivo
- -------------------------- ----------------------------
Neal R. Restivo
Executive Vice President and
Chief Financial Officer
15
<PAGE> 16
<TABLE>
<CAPTION>
CORRPRO COMPANIES, INC.
PROFIT SHARING PLAN AND TRUST
PLAN #001 EIN 34-1422570
LINE 27a SCHEDULE OF ASSETS HELD FOR INVESTMENT PURPOSES
MARCH 31, 1999
--------------
(c)
(b) Description of investment including maturity date,
(a) Identity of issue, borrower, lessor, or similar party rate of interest, collateral, par or maturity value
--- ----------------------------------------------------- ---------------------------------------------------
<S> <C>
* CIGNA Guaranteed Income Fund Guaranteed Insurance Contract, 5.2% interest rate
* CIGNA Lifetime20 Fund Mutual Fund
* CIGNA Lifetime30 Fund Mutual Fund
* CIGNA Lifetime40 Fund Mutual Fund
* CIGNA Lifetime50 Fund Mutual Fund
* CIGNA Lifetime60 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
* Participants Participants loans with various rates of interest
from 7.00% to 9.50% and various maturity dates
</TABLE>
* Party in Interest
** Cost of Participants loans are $0 as indicated in the instructions
to Form 5000, Line 27a
<TABLE>
<CAPTION>
<S> <C>
(b) (d) (e)
(a) Identity of issue, borrower, lessor, or similar party Cost Current Value
--- ----------------------------------------------------- ---- -------------
* CIGNA Guaranteed Income Fund $ 2,906,303 $ 2,906,303
* CIGNA Lifetime20 Fund 129,646 154,145
* CIGNA Lifetime30 Fund 300,834 382,876
* CIGNA Lifetime40 Fund 466,071 582,263
* CIGNA Lifetime50 Fund 426,931 537,788
* CIGNA Lifetime60 Fund 138,360 168,786
* Fidelity Growth and Income Fund 1,340,470 1,921,197
* Vanguard Wellington Fund 846,985 1,094,654
* Fidelity Magellan Fund 1,326,327 2,099,310
* Twentieth Century Ultra Fund 1,257,486 1,977,576
* Warburg Pincus Emerging Growth Fund 413,808 468,689
* Warburg Pincus Advisor International Equity Fund 228,774 231,101
* Corrpro Companies, Inc. Common Stock 1,347,236 2,558,883
* Participants
** 443,850
* Party in Interest
** Cost of Participants loans are $0 as indicated in the instructions
to Form 5000, Line 27a
</TABLE>
See accompanying Independent Auditors Report
16
<PAGE> 17
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, 1999
(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 $ 256,741 $ 572,543 $ -
71,021 purchases, 47,148 sales
Connecticut General Life Fidelity G&I Account 525,414 289,466 -
9,062 purchases, 5,214 sales
Connecticut General Life Guaranteed Income Fund 768,714 654,824 -
34 purchases, 116 sales
</TABLE>
<TABLE>
<CAPTION>
(h)
(f) Current (i)
(a) Expenses (g) Value of Asset Net
Identity of Incurred Cost of on Transaction Gain or
Party Involved With Transaction Asset Date (Loss)
-------------- ---------------- ----- ---- ------
<S> <C> <C> <C> <C>
Corrpro Companies, Inc. $ - $ 282,543 $ 572,543 $ 290,000
Connecticut General Life - 212,247 289,466 77,219
Connecticut General Life - 654,824 654,824 -
</TABLE>
See accompanying Independent Auditors Report
17
<PAGE> 18
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
9, 1999, 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, 1999.
KPMG LLP
Cleveland, Ohio
September 27, 1999
18
