SCHEDULE 14A INFORMATION
Proxy Statement Pursuant to Section 14(a)
of the Securities Exchange Act of 1934
[ X ] Filed by the registrant
[ ] Filed by a party other than the registrant
Check the appropriate box:
[ ] Preliminary Proxy Statement
[ ] Confidential, for Use of the Commission Only
(as permitted by Rule 14a-6(e)(2))
[ X ] Definitive Proxy Statement
[ ] Definitive Additional Materials
[ ] Soliciting Material Pursuant to ss. 240.14a-11(c) or ss. 240.14a-12
BALTEK CORPORATION
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(Name of Registrant as Specified in Its Charter)
<PAGE>
BALTEK CORPORATION
NOTICE OF ANNUAL MEETING OF SHAREHOLDERS
May 22, 1997
To The Shareholders:
Notice is hereby given that an annual meeting of Shareholders of Baltek
Corporation will be held at the offices of Baltek Corporation, 10 Fairway Court,
Northvale, New Jersey, on May 22, 1997, at 10:00 A.M. (Eastern Daylight Savings
Time):
1. To elect seven (7) directors of the Company to hold office for the
ensuing year;
2. To approve the appointment of Deloitte & Touche LLP, Certified Public
Accountants, as the independent auditors of the Company for 1997;
3. To consider and transact such other business as may properly come
before the meeting or any adjournment thereof.
A Proxy Statement relating to such meeting is enclosed herewith. The Annual
Report of the Company for the fiscal year ended December 31, 1996 is also
enclosed. Shareholders of record at the close of business on April 15, 1997 will
be entitled to notice of and to vote at said meeting or any adjournments
thereof.
If you cannot be present at the meeting, will you kindly sign, date and
return the enclosed form of proxy in the envelope provided.
By Order of the Board of Directors
MARGOT W. KOHN
Secretary
Northvale, New Jersey
April 28, 1997
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Please fill in, date, sign and mail promptly the accompanying
proxy in the return envelope furnished for that purpose, whether
or not you plan to attend the meeting.
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<PAGE>
PROXY STATEMENT
BALTEK CORPORATION
P.O. Box 195
10 Fairway Court
Northvale, New Jersey 07647
ANNUAL MEETING OF SHAREHOLDERS TO BE HELD MAY 22, 1997
To the Shareholders of Baltek Corporation:
This statement is furnished in connection with the solicitation by the
Board of Directors of proxies to be used at the Annual Meeting of Shareholders
of Baltek Corporation (the "Company") to be held at 10:00 A.M. Eastern Daylight
Savings time on May 22, 1997 at the offices of Baltek Corporation, 10 Fairway
Court, Northvale, New Jersey and at any adjournments thereof. All shareholders
of record at the close of business on April 15, 1997 are entitled to notice of
and to vote at such meeting. Proxy Cards and Proxy Statements are expected to be
mailed to shareholders on or about April 28, 1997. The stock transfer books will
not be closed.
Any proxy, if received in time for voting and not revoked, will be voted at
the meeting in accordance with the directions of the shareholder. Any
shareholder giving a proxy has the power to revoke it in person or by a writing
delivered to the Secretary of the Company at any time before it is exercised.
All expenses incurred in connection with this solicitation will be borne by the
Company.
The Board of Directors does not know of any matters which will be brought
before the meeting other than those specifically set forth in the notice
thereof. However, if any other matter properly comes before the meeting, it is
intended that the persons named in and acting under the enclosed form of proxy,
or their substitutes, will vote on such matters in accordance with their best
judgment.
At the close of business on April 3, 1997, the Company had outstanding
2,523,261 shares of Common Stock. Each share has one vote. Unless the context
otherwise indicates, the term "Company" refers to Baltek Corporation.
<PAGE>
SECURITY OWNERSHIP OF CERTAIN
BENEFICIAL OWNERS AND MANAGEMENT
The following table sets forth certain information regarding the ownership
of the Company's common stock at March 18, 1997 by each person known to the
Company to be the beneficial owner at that date of more than 5 percent of the
outstanding common stock of the Company, by each director, and by all directors
and officers of the Company as a group (1):
<TABLE>
<CAPTION>
Name and Address Number of Percent
Beneficial Owner Shares of Class
---------------- ------ --------
<S> <C> <C>
Jacques Kohn 467,087 18.5
10 Fairway Court
Northvale, N.J. 07647
Jean Kohn 467,087 18.5
10 Fairway Court
Northvale, N.J. 07647
Bernard Kohn (a) 337,150 13.4
10 Fairway Court
Northvale, N.J. 07647
Reich & Tang Asset 305,500 12.1
Management L.P. (b)
Benson J. Zeikowitz 200 *
Theodore Ness 2,750 *
William F. Nicklin 2,000 *
All directors and officers as a 951,087 37.7
group (9 persons including those
named above)
- ---------------------
* Less than 1%
(a) The shares owned by Bernard Kohn are held in a voting trust, dated May 25,
1991, of which his brothers, Jacques Kohn and Jean Kohn, are the voting
Trustees.
(b) Successor to New England Investment Companies L.P. as the owner of the
shares listed.
(1) For purpose of the above table, beneficial ownership has been determined in
accordance with Rule 13d-3 under the Securities Exchange Act. None of the
provisions of that rule have any effect on the beneficial stock ownership of the
Company.
</TABLE>
<PAGE>
ELECTION OF DIRECTORS
Seven (7) Directors are to be elected to hold office until the next annual
meeting of shareholders and until their successors have been elected and shall
have qualified.
The members of the Board of Directors are elected by a majority of the
shares present or represented at this meeting, and voting on the election of
directors.
Unless otherwise instructed, shares represented by the proxies will be
voted for the election of the nominees listed below, all but one of whom are
members of the present Board of Directors. All but one of the members of the
Board of Directors were elected to their present term of office by the vote of
the Shareholders at the annual meeting of the Company on May 23, 1996.
The table below sets forth each nominee for election as a Director (based
on information supplied by them), their name, their age, their principal
occupation or employment during the past five years, and the number of Common
Shares of stock of the Company beneficially owned, directly or indirectly, by
them at the close of business on March 18, 1997.
<TABLE>
<CAPTION>
INFORMATION CONCERNING NOMINEES
Principal Occupation Shares Beneficially
or Employment by the Has Served Owned Directly
Company unless as Director or Indirectly on
Name otherwise indicated since Age March 18, 1997
- ---- ------------------- ----- --- --------------
<S> <C> <C> <C> <C>
Jacques Kohn (c) President 1969(a) 75 467,087
Jean Kohn (c) Executive Vice President 1969(a) 72 467,087
Henri-Armand Kohn (c) Executive Vice President 48 11,963
Benson J. Zeikowitz Treasurer 1969(a) 70 200
Theodore Ness (e) Partner in Law Firm of 1972 80 2,750 (b)
Herzfeld & Rubin, P.C.
Margot W. Kohn (c) Secretary 1975 71 -0-(d)
William F. Nicklin (f) Branch Manager, Account 1981 53 2,000
Executive and Managing
Director, Alex Brown & Sons
- ----------------------
(a) Has been a Director of the Company and its predecessors for over 20 years.
(b) Does not include 2,750 shares held by Mr. Ness's wife. Mr. Ness disclaims
any beneficial interest in such shares.
(c) Jacques Kohn and Jean Kohn are brothers. Henri-Armand Kohn is the son of
Jean Kohn. Margot W. Kohn is the wife of Jacques Kohn.
<PAGE>
(d) Margot W. Kohn disclaims any beneficial interest in shares owned by her
husband.
(e) Legal services are provided to the Company by the law firm of Herzfeld &
Rubin, P.C.
(f) Mr. Nicklin is a member of the Board of Directors of Carco Electronics a
corporation registered under Section 12 of the Exchange Act. None of the other
nominees are members of the Board of Directors of any corporations registered
under Section 12 of the Exchange Act or subject to the requirements of Section
15(d) of the Act.
</TABLE>
The Board of Directors has an Audit Committee, the members of which are
William F. Nicklin and Theodore Ness. The functions of the Audit Committee
comprise generally the following: recommend to the Board of Directors the firm
of independent accountants to serve the Company each fiscal year; review the
scope, fees and results of the audit by the independent accountants; and review
the internal accounting control procedures of the Company and compliance with
those procedures and policies. The Audit Committee had two meetings in 1996.
The Board of Directors also has a Compensation Committee, the members of
which are William F. Nicklin and Theodore Ness. The Compensation Committee is to
review periodically, and at least annually, the current compensation of the
officers of the Company, and determine whether an adjustment is to be made in
the amount and kinds of compensation to be paid to each of the officers. In
1996, no significant changes were made in the base compensation of the officers.
The Compensation Committee had two meetings in 1996.
The Board of Directors held three meetings in 1996. Jean Kohn, a member of
the Board of Directors, did not attend these meetings. The Company has no
Nominating Committee.
<PAGE>
Executive Compensation
The following information is furnished with respect to the President of the
Company, as the Chief Executive Officer (CEO) and the Company's four most highly
compensated officers, other than the CEO (all five are referred to collectively
as the "named executive officers").
<TABLE>
<CAPTION>
SUMMARY COMPENSATION TABLE
Long Term Compensation
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Annual Compensation Awards Payouts
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(a) (b) (c) (d) (e) (f) (g) (h) (i)
Securities
Other Restricted Underlying
Name and Annual Stock Options/ LTIP All Other
Principal Position Year Salary Bonus (1) Compensation (3) Award(s) SARs (#) Payout Compensation (2)
- ------------------ ---- ------ --------- ---------------- -------- -------- ------ ----------------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
Jacques Kohn 1996 $192,107 $ 5,000 $14,502 $0 0 $0 $ 3,371
President & CEO 1995 $192,107 $35,531 $14,502 $0 0 $0 $ 8,933
1994 $192,107 $20,430 $14,502 $0 0 $0 $ 7,529
Jean Kohn 1996 $184,992 $ 5,000 $10,551 $0 0 $0 $ 9,239
Executive Vice 1995 $184,992 $34,216 $10,551 $0 0 $0 $16,658
President 1994 $192,107 $20,430 $10,551 $0 0 $0 $13,938
Benson J. Zeikowitz 1996 $169,992 $ 5,000 $ 9,080 $0 0 $0 $ 9,239
Treasurer 1995 $169,992 $31,441 $ 9,080 $0 0 $0 $16,658
1994 $169,992 $18,078 $ 9,080 $0 0 $0 $13,938
Antonio R. Diaz 1996 $190,260 $ 5,000 $ 5,328 $0 0 $0 $ 9,239
Vice President-Latin 1995 $185,990 $34,400 $ 5,201 $0 0 $0 $16,658
American Operations 1994 $180,912 $19,240 $ 5,201 $0 0 $0 $13,938
Margot W. Kohn 1996 $166,150 $ 5,000 $ 9,822 $0 0 $0 $ 2,294
Secretary 1995 $166,150 $30,731 $ 9,822 $0 0 $0 $ 7,725
1994 $166,150 $17,670 $ 9,822 $0 0 $0 $ 6,409
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(1) The bonuses were paid pursuant to the Company's Officers' Group Bonus Plan,
adopted in 1988. The provisions of the Plan are as follows: (1) the Plan
covers eight officers of the Company including the named executive officers;
(2) the bonus is based on income before taxes (IBT) and before bonus; (3) no
bonus is paid until consolidated IBT is at least 4% of revenues, except that
if the Company is profitable then a minimum bonus of $5,000.00 each is paid;
(4) Group bonus is calculated as follows:
<CAPTION>
IBT as a % Group bonus as a
of Revenues % of IBT
----------- --------
<S> <C>
4 to 5.99% 5%
6 to 7.99% 8%
8 and up 10%
<PAGE>
(5) the group bonus shall be divided pro-rata based on the current annual
salaries of the officers; and (6) the maximum bonus for each shall not
exceed 30% of annual compensation.
(2) The amounts represent contributions by the Company under the Baltek
Corporation Profit Sharing Plan, a qualified contribution plan covering all
salaried employees, to which the Company makes annual contributions out of
its profits. Each contribution is allocated to participants on the basis of
their respective rates of compensation, but with lesser amounts allocated to
compensation that constitutes "wages" for social security purposes, in
accordance with the rules of the Internal Revenue Code. The Plan provides
for vesting of amounts contributed by the Company over a period of years.
(3) The amounts are premiums paid by the Company on individual life insurance
policies on the lives of 8 officers, including the named executive officers.
Each individual executive owns the policy on his life. This insurance is in
addition to a group-term life insurance policy providing term insurance on
all the salaried employees, with a maximum coverage per employee of $50,000.
(4) The Company has adopted an amendment to the Profit Sharing Plan described in
note (2) providing an election to all the participants, pursuant to Section
401(k) of the Internal Revenue Code, to defer between 2 percent and 10
percent of salary. Amounts deferred are paid over to the Trustee under that
Plan. The amendment does not provide for matching Company contributions. The
amounts of salary listed in column (c) are the salaries of the named
executive officers before any elective deferral under the amendment.
</TABLE>
No member of the Board of Directors was compensated for his services on the
Board of Directors, except William F. Nicklin, whose compensation consisted of
an annual fee of $3,000, plus a fee of $350 for each meeting of the Board of
Directors.
BOARD COMPENSATION COMMITTEE REPORT
ON EXECUTIVE COMPENSATION
The Committee's compensation policy is subjective and not subject to
specific criteria. The salaries of the executive officers were not increased in
1996.
The policy of the Compensation Committee as to compensation payable to
executive officers is that the executive officers function as an integrated
team, headed by the CEO. They earn bonuses under the Officers' Group Bonus Plan,
depending upon the profitability of the Company's operations. Increases in the
salaries of officers are not based on the profit performance of the Company, but
rather on exceptionally valuable services of particular officers and also on
years of service.
As stated above, the compensation of the CEO was not increased for the year
1996. The compensation received by him for that year is based on services over a
period of more than 50 years for the Company and its predecessors. His work
requires involvement and decision-making in all areas of the Company's balsa and
shrimp business in the United States, Ecuador, and in all other markets where
the Company's products are sold. His compensation for 1996 was well-earned.
COMPENSATION COMMITTEE
Theodore Ness
William F. Nicklin
<PAGE>
PERFORMANCE GRAPH
The following graph compares the cumulative total return on a hypothetical
$100 investment made at the close of business at the end of the years 1991
through 1996 in: (a) the Company's common stock; (b) the NASDAQ Market Value
Index; and (c) the SIC Based Peer Group #2430 Millwork, Veneer, Plywood. The
graph is calculated assuming that all dividends are reinvested during the
relevant periods. The graph shows how a $100 investment would increase or
decrease in value over time, based on dividends (stock or cash) and increases or
decreases in the market price of the stock and each of the indices.
INDEX OF TOTAL RETURNS:
Baltek Corporation; NASDAQ Market Value Index;
Peer Group #2430 Millwork, Veneer, Plywood
January 1, 1992 - December 31, 1996
[GRAPHIC-GRAPH PLOTTED TO POINTS BELOW]
<TABLE>
<CAPTION>
FISCAL YEAR ENDING
--------------------------------------------------
COMPANY 1991 1992 1993 1994 1995 1996
- ------- ---- ---- ---- ---- ---- ----
<S> <C> <C> <C> <C> <C> <C>
BALTEK CORP 100 109.52 133.33 123.81 161.90 138.10
INDUSTRY INDEX 100 142.57 164.77 175.00 174.53 209.57
BROAD MARKET 100 100.98 121.13 127.17 164.96 204.98
</TABLE>
RATIFICATION OF APPOINTMENT OF INDEPENDENT AUDITORS
On recommendation of the Audit Committee, the Board of Directors recommends
the appointment of Deloitte & Touche LLP as independent auditors of the Company
for the year ending December 31, 1997.
A representative of Deloitte & Touche LLP will be present at this Annual
Meeting with the opportunity to make a statement and to respond to shareholder
questions.
The Board of Directors considers Deloitte & Touche LLP to be well qualified
to serve as auditors. The Board of Directors recommends a vote "For" the
proposal to ratify the selection of Deloitte & Touche LLP as independent
accountants for the year 1997.
Ratification of the selection of Deloitte & Touche LLP as independent
accountants requires the affirmative vote of a majority of shareholders present
in person or by proxy at this meeting, and voting on this proposal.
<PAGE>
SHAREHOLDER PROPOSALS
Any shareholder proposal to be considered by the Company for inclusion in
the 1998 Annual Meeting of Shareholders proxy materials must be received by the
Company not later than January 30, 1998.
OTHER MATTERS
While the Board of Directors does not know of any matters which may be
brought before the meeting, the proxy confers discretionary authority with
respect to the transaction of any other business. It is expected that shares
represented by proxies will be voted in support of the Board of Directors on any
question which may properly be submitted at the meeting.
By Order of the Board of Directors
MARGOT W. KOHN
Secretary
Northvale, New Jersey
April 28, 1997
<PAGE>
REVOCABLE PROXY
BALTEK CORPORATION
[ X ] PLEASE MARK VOTES AS IN THIS EXAMPLE
SOLICITED BY THE BOARD OF DIRECTORS
PROXY for Annual Meeting of Stockholders to be held on May 22, 1997 at 10:00
A.M.Eastern Daylight Savings Time at the offices of Baltek Corporation, 10
Fairway Court, Northvale, New Jersey.
The undersigned hereby appoint Jacques Kohn, Benson J. Zeikowitz and Theodore
Ness, or any one of them, with full power of substitution, as proxies to vote at
the Annual Meeting of Shareholders (including adjournments) of Baltek
Corporation to be convened May 22, 1997.
The Board of Directors recommends a vote FOR:
1. Election of Directors
Nominees:
Jacques Kohn, Jean Kohn, Henri-Armand Kohn, Benson J. Zeikowitz, Theodore
Ness, Margot W. Kohn & William F. Nicklin
[ ] FOR [ ] WITHHOLD [ ] FOR ALL EXCEPT
INSTRUCTION:To withhold authority to vote for any individual nominee, mark "For
All Except" and write that nominee's name in the space provided below.
- --------------------------------------------------------------------------------
2. Proposal to approve the selection of Deloitte & Touche LLP as auditors of
the Company.
[ ] FOR [ ] AGAINST [ ] ABSTAIN
3. In their discretion, upon such matters as may properly come before the
meeting.
THE SHARES REPRESENTED BY THIS PROXY WILL BE VOTED UPON THE RESOLUTIONS
LISTED ABOVE IN ACCORDANCE WITH THE INSTRUCTIONS GIVEN BY THE STOCKHOLDER, BUT
IF NO INSTRUCTION IS GIVEN, THIS PROXY WILL BE VOTED FOR THE PROPOSALS, AND
OTHERWISE ACCORDING TO MANAGEMENT RECOMMENDATIONS.
This proxy is to be voted for each proposition unless a contrary vote is
specified. It may be revoked at any time prior to its exercise in person or by a
writing delivered to the Secretary of the Company.
When signing as attorney, executor, administrator, trustee, guardian or
corporate officer, please give your full title as such.
<PAGE>
Please be sure to sign and date this Proxy in the box below.
_____________________________
Date
_____________________________
Stockholder sign above
_____________________________
Co-holder (if any) sign above
Detach above card, sign, date and mail in postage paid envelope provided.
BALTEK CORPORATION
Northvale, NJ 07647
PLEASE ACT PROMPTLY
BE SURE TO COMPLETE, SIGN AND RETURN THIS PROXY, WHETHER OR NOT YOU ELECT TO
BE PRESENT IN PERSON. ALL SIGNATURES MUST APPEAR EXACTLY AS YOUR NAME APPEARS ON
THIS PROXY.
THANK YOU
