Delaware
|
75-1277589
|
|
(State
of Incorporation)
|
(I.R.S.
Employer Identification No.)
|
Yes
x
|
No o
|
Large
accelerated filer o
|
Accelerated
filer o
|
Non-accelerated
filer x
|
Yes
o
|
No x
|
Class
|
Outstanding
at July 31, 2006
|
|
Common
Stock, $1 Par Value
|
7,963,577
Shares
|
Page | |||
PART I | FINANCIAL INFORMATION | ||
Item 1. |
Financial
Statements:
|
||
Condensed Consolidated Balance Sheets | |||
June 30, 2006 and December 31, 2005 (unaudited) | 3,4 | ||
Condensed Consolidated Statements of Operations | |||
Three Months and Six Months Ended June 30, 2006 and 2005 (unaudited) | 5 | ||
Condensed Consolidated Statements of Cash Flows | |||
Six Months Ended June 30, 2006 and 2005 (unaudited) | 6 | ||
Notes to Condensed Consolidated Financial Statements (unaudited) | 7 | ||
Item 2. | Management's Discussion and Analysis of Financial | ||
Condition and Results of Operations | 30 | ||
Item 3. | Quantitative and Qualitative Disclosures about Market Risk | 45 | |
Item 4. | Controls and Procedures | 45 | |
PART II | OTHER INFORMATION | ||
Item 1. | Legal Proceedings | 48 | |
Item 1A. | Risk Factors | 48 | |
Item 2. | Unregistered Sales of Equity Securities and Use of Proceeds | 48 | |
Item 3. | Defaults Upon Senior Securities | 48 | |
Item 4. | Submission of Matters to a Vote of Security Holders | 48 | |
Item 5. | Other Information | 49 | |
Item 6. | Exhibits | 49 | |
Signatures | 52 |
June
30,
|
December
31,
|
||||||
2006
|
2005
|
||||||
CURRENT
ASSETS:
|
|||||||
Cash
and cash equivalents
|
$
|
4,565
|
$
|
8,421
|
|||
Accounts
receivable, net
|
54,102
|
63,612
|
|||||
Inventories,
net
|
57,522
|
62,799
|
|||||
Other
current assets
|
3,653
|
3,600
|
|||||
Total
current assets
|
119,842
|
138,432
|
|||||
OTHER
ASSETS:
|
|||||||
Goodwill
|
665
|
665
|
|||||
Intangibles,
net
|
6,563
|
6,946
|
|||||
Other
|
9,706
|
8,643
|
|||||
Total
other assets
|
16,934
|
16,254
|
|||||
PROPERTY
AND EQUIPMENT
|
|||||||
Land
and improvements
|
1,789
|
1,732
|
|||||
Buildings
and improvements
|
13,255
|
14,011
|
|||||
Machinery
and equipment
|
138,233
|
140,514
|
|||||
153,277
|
156,257
|
||||||
Less
- Accumulated depreciation
|
(99,673
|
)
|
(98,260
|
)
|
|||
Property
and equipment, net
|
53,604
|
57,997
|
|||||
Total
assets
|
$
|
190,380
|
$
|
212,683
|
|||
See
Notes to Condensed Consolidated Financial Statements.
|
June
30,
|
December
31,
|
||||||
2006
|
2005
|
||||||
CURRENT
LIABILITIES:
|
|||||||
Accounts
payable
|
$
|
28,714
|
$
|
47,449
|
|||
Accrued
compensation
|
3,583
|
4,071
|
|||||
Accrued
expenses
|
38,208
|
37,713
|
|||||
Current
maturities of long-term debt
|
2,857
|
2,857
|
|||||
Revolving
credit agreement
|
49,056
|
41,946
|
|||||
Total
current liabilities
|
122,418
|
134,036
|
|||||
LONG-TERM
DEBT, less current maturities
|
10,248
|
12,857
|
|||||
OTHER
LIABILITIES
|
8,764
|
10,497
|
|||||
Total
liabilities
|
141,430
|
157,390
|
|||||
COMMITMENTS
AND CONTINGENCIES (Note 9)
|
-
|
-
|
|||||
STOCKHOLDERS’
EQUITY
|
|||||||
15%
Convertible Preferred Stock, $100 par value,
authorized
|
|||||||
1,200,000
shares, issued and outstanding 1,131,551 shares,
|
|||||||
liquidation
value $113,155
|
108,256
|
108,256
|
|||||
Common
stock, $1 par value, authorized 35,000,000 shares,
|
|||||||
issued
9,822,304 shares
|
9,822
|
9,822
|
|||||
Additional
paid-in capital
|
26,969
|
27,016
|
|||||
Accumulated
other comprehensive income
|
4,045
|
3,158
|
|||||
Accumulated
deficit
|
(78,088
|
)
|
(70,415
|
)
|
|||
Treasury
stock, at cost, 1,856,027 and 1,874,027 shares,
respectively
|
(22,054
|
)
|
(22,544
|
)
|
|||
Total
stockholders' equity
|
48,950
|
55,293
|
|||||
Total
liabilities and stockholders' equity
|
$
|
190,380
|
$
|
212,683
|
|||
See
Notes to Condensed Consolidated Financial Statements.
|
|
Three
Months
|
Six
Months
|
|
||||||||||
Ended
June 30,
|
Ended
June 30,
|
||||||||||||
2006
|
2005
|
2006
|
2005
|
||||||||||
|
|||||||||||||
Net
sales
|
$
|
92,080
|
$
|
93,835
|
$
|
172,335
|
$
|
185,087
|
|||||
Cost
of goods sold
|
79,786
|
83,074
|
149,222
|
165,505
|
|||||||||
Gross
profit
|
12,294
|
10,761
|
23,113
|
19,582
|
|||||||||
Selling,
general and administrative expenses
|
12,702
|
15,594
|
25,809
|
27,681
|
|||||||||
Severance,
restructuring and related charges
|
71
|
466
|
853
|
638
|
|||||||||
(Gain)
loss on sale of assets
|
(48
|
)
|
(352
|
)
|
54
|
(166
|
)
|
||||||
Operating
loss
|
(431
|
)
|
(4,947
|
)
|
(3,603
|
)
|
(8,571
|
)
|
|||||
Interest
expense
|
(1,743
|
)
|
(1,350
|
)
|
(3,483
|
)
|
(2,574
|
)
|
|||||
Other,
net
|
83
|
38
|
420
|
(10
|
)
|
||||||||
Loss
from continuing operations before provision (benefit)
|
|||||||||||||
for
income taxes
|
(2,091
|
)
|
(6,259
|
)
|
(6,666
|
)
|
(11,155
|
)
|
|||||
Provision
(benefit) for income taxes from continuing operations
|
406
|
(134
|
)
|
658
|
(2
|
)
|
|||||||
Loss
from continuing operations
|
(2,497
|
)
|
(6,125
|
)
|
(7,324
|
)
|
(11,153
|
)
|
|||||
Income
from operations of discontinued businesses
|
|||||||||||||
(net
of tax)
|
545
|
79
|
337
|
459
|
|||||||||
Gain
on sale of discontinued businesses (net of tax)
|
70
|
-
|
70
|
-
|
|||||||||
Loss
before cumulative effect of a change in accounting
principle
|
(1,882
|
)
|
(6,046
|
)
|
(6,917
|
)
|
(10,694
|
)
|
|||||
Cumulative
effect of a change in accounting principle (net of tax)
|
-
|
-
|
(756
|
)
|
-
|
||||||||
Net
loss
|
$
|
(1,882
|
)
|
$
|
(6,046
|
)
|
$
|
(7,673
|
)
|
$
|
(10,694
|
)
|
|
Loss
per share of common stock - Basic and diluted:
|
|||||||||||||
Loss
from continuing operations
|
$
|
(0.31
|
)
|
$
|
(0.77
|
)
|
$
|
(0.92
|
)
|
$
|
(1.40
|
)
|
|
Discontinued
operations
|
0.08
|
0.01
|
0.05
|
0.05
|
|||||||||
Cumulative
effect of a change in accounting principle
|
-
|
-
|
(0.09
|
)
|
-
|
||||||||
Net
loss
|
$
|
(0.23
|
)
|
$
|
(0.76
|
)
|
$
|
(0.96
|
)
|
$
|
(1.35
|
)
|
|
Weighted
average common shares outstanding (thousands):
|
|||||||||||||
Basic
and diluted
|
7,979
|
7,948
|
7,975
|
7,947
|
|||||||||
See
Notes to Condensed Consolidated Financial Statements.
|
2006
|
2005
|
||||||
Cash
flows from operating activities:
|
|||||||
Net
loss
|
$
|
(7,673
|
)
|
$
|
(10,694
|
)
|
|
Income
from operations of discontinued business
|
(407
|
)
|
(459
|
)
|
|||
Loss
from continuing operations
|
(8,080
|
)
|
(11,153
|
)
|
|||
Cumulative
effect of a change in accounting principle
|
756
|
-
|
|||||
Depreciation
and amortization
|
5,191
|
5,705
|
|||||
Amortization
of debt issuance costs
|
582
|
557
|
|||||
Stock
option expense
|
371
|
1,953
|
|||||
Loss
(gain) on sale of assets
|
54
|
(166
|
)
|
||||
(1,126
|
)
|
(3,104
|
)
|
||||
Changes
in operating assets and liabilities:
|
|||||||
Accounts
receivable
|
10,640
|
9,526
|
|||||
Inventories
|
2,545
|
5,132
|
|||||
Other
assets
|
19
|
(330
|
)
|
||||
Accounts
payable
|
(13,576
|
)
|
(5,277
|
)
|
|||
Accrued
expenses
|
559
|
(4,246
|
)
|
||||
Other,
net
|
(2,733
|
)
|
(2,217
|
)
|
|||
(2,546
|
)
|
2,588
|
|||||
Net
cash used in continuing operations
|
(3,672
|
)
|
(516
|
)
|
|||
Net
cash (used in) provided by discontinued operations
|
(520
|
)
|
1,004
|
||||
Net
cash (used in) provided by operating activities
|
(4,192
|
)
|
488
|
||||
Cash
flows from investing activities:
|
|||||||
Capital
expenditures of continuing operations
|
(1,857
|
)
|
(2,943
|
)
|
|||
Capital
expenditures of discontinued operations
|
-
|
(11
|
)
|
||||
Collections
of note receivable from sale of subsidiary
|
-
|
106
|
|||||
Proceeds
from sale of discontinued operations, net
|
2,542
|
-
|
|||||
Proceeds
from sale of assets
|
238
|
600
|
|||||
Net
cash provided by (used in) investing activities
|
923
|
(2,248
|
)
|
||||
Cash
flows from financing activities:
|
|||||||
Net
borrowings (repayments) on revolving loans
|
6,835
|
(410
|
)
|
||||
Decrease
in book overdraft
|
(4,315
|
)
|
-
|
||||
Repayments
of term loans
|
(2,609
|
)
|
(2,142
|
)
|
|||
Direct
costs associated with debt facilities
|
(166
|
)
|
(135
|
)
|
|||
Repurchases
of common stock
|
(75
|
)
|
-
|
||||
Proceeds
from the exercise of stock options
|
147
|
-
|
|||||
Net
cash used in financing activities
|
(183
|
)
|
(2,687
|
)
|
|||
Effect
of exchange rate changes on cash and cash equivalents
|
(404
|
)
|
(15
|
)
|
|||
Net
decrease in cash and cash equivalents
|
(3,856
|
)
|
(4,462
|
)
|
|||
Cash
and cash equivalents, beginning of period
|
8,421
|
8,525
|
|||||
Cash
and cash equivalents, end of period
|
$
|
4,565
|
$
|
4,063
|
|||
Supplemental
disclosure of non-cash investing activities:
|
|||||||
Note
receivable from sale of discontinued operations
|
$
|
1,200
|
$
|
-
|
|||
See
Notes to Condensed Consolidated Financial Statements.
|
June
30,
|
December
31,
|
||||||
2006
|
2005
|
||||||
Raw
materials
|
$
|
16,696
|
$
|
23,314
|
|||
Work
in process
|
775
|
1,766
|
|||||
Finished
goods
|
50,362
|
48,949
|
|||||
Excess
and obsolete inventory reserve
|
(4,286
|
)
|
(4,548
|
)
|
|||
LIFO
reserve
|
(6,025
|
)
|
(6,682
|
)
|
|||
$
|
57,522
|
$
|
62,799
|
||||
SFAS
No. 143 Obligation at December 31, 2005
|
$
|
1,068
|
||
Accretion
expense
|
26
|
|||
Changes
in estimates, including timing
|
-
|
|||
SFAS
No. 143 Obligation at June 30, 2006
|
$
|
1,094
|
||
|
Three
Months
|
Six
Months
|
|||||
|
Ended
June 30,
|
Ended
June 30,
|
|||||
2006
|
2006
|
||||||
Selling,
general and administrative expense
|
$
|
(462
|
)
|
$
|
27
|
||
Cumulative
effect of a change in accounting principle
|
-
|
756
|
|||||
$
|
(462
|
)
|
$
|
783
|
|||
|
Three
Months
|
Six
Months
|
|||||
Ended
June 30,
|
Ended
June 30,
|
||||||
2005
|
2005
|
||||||
Net
loss
|
$
|
(6,046
|
)
|
$
|
(10,694
|
)
|
|
Add:
Stock-based employee compensation expense
|
|||||||
included
in reported net income, with no related
|
|||||||
tax
effects
|
1,953
|
1,953
|
|||||
Deduct:
Total stock-based employee
|
|||||||
compensation
expense determined under fair
|
|||||||
value
based method for all awards, with no
|
|||||||
related
tax effects
|
(14
|
)
|
(14
|
)
|
|||
Pro
forma net loss
|
$
|
(4,107
|
)
|
$
|
(8,755
|
)
|
|
Loss
per share:
|
|||||||
Basic
and diluted - as reported
|
$
|
(0.76
|
)
|
$
|
(1.35
|
)
|
|
Basic
and diluted - pro forma
|
$
|
(0.52
|
)
|
$
|
(1.10
|
)
|
Notional
Amount
|
Maturity
|
Rate
Paid
|
Rate
Received
|
Fair
Value (2)
|
|||||
$
25,000
|
August
17, 2007
|
4.49%
|
LIBOR
(1)
|
$
199
|
|||||
(1)
|
LIBOR
rate is determined on the 23rd of each month and continues up to
and
including the maturity date.
|
||||||||
(2)
|
The
fair value is the mark-to-market
value.
|
Three
Months Ended June 30,
|
Six
Months Ended June 30,
|
||||||||||||
2006
|
2005
|
2006
|
2005
|
||||||||||
Net
loss
|
$
|
(1,882
|
)
|
$
|
(6,046
|
)
|
$
|
(7,673
|
)
|
$
|
(10,694
|
)
|
|
Foreign
currency translation gains (losses)
|
838
|
(1,045
|
)
|
754
|
(1,444
|
)
|
|||||||
Unrealized
gains on interest rate swap
|
40
|
-
|
133
|
-
|
|||||||||
878
|
(1,045
|
)
|
887
|
(1,444
|
)
|
||||||||
Comprehensive
loss
|
$
|
(1,004
|
)
|
$
|
(7,091
|
)
|
$
|
(6,786
|
)
|
$
|
(12,138
|
)
|
|
June
30,
|
December
31,
|
||||||||||||||||||
2006
|
2005
|
||||||||||||||||||
Gross
|
Accumulated
|
Net
Carrying
|
Gross
|
Accumulated
|
Net
Carrying
|
||||||||||||||
Amount
|
Amortization
|
Amount
|
Amount
|
Amortization
|
Amount
|
||||||||||||||
Patents
|
$
|
1,420
|
$
|
(993
|
)
|
$
|
427
|
$
|
1,409
|
$
|
(954
|
)
|
$
|
455
|
|||||
Customer
lists
|
10,438
|
(8,016
|
)
|
2,422
|
10,643
|
(7,997
|
)
|
2,646
|
|||||||||||
Tradenames
|
5,522
|
(2,208
|
)
|
3,314
|
5,498
|
(2,075
|
)
|
3,423
|
|||||||||||
Other
|
441
|
(41
|
)
|
400
|
441
|
(19
|
)
|
422
|
|||||||||||
Total
|
$
|
17,821
|
$
|
(11,258
|
)
|
$
|
6,563
|
$
|
17,991
|
$
|
(11,045
|
)
|
$
|
6,946
|
|||||
2006
|
$
|
1,500
|
||
2007
|
400
|
|||
$
|
1,900
|
|||
June
30,
|
December
31,
|
||||||
2006
|
2005
|
||||||
Term
loan payable under Bank of America Credit Agreement, interest based
|
|||||||
on
LIBOR and Prime Rates (8.38% - 9.50%), due through 2009
|
$
|
13,105
|
$
|
15,714
|
|||
Revolving
loans payable under the Bank of America Credit Agreement,
|
|||||||
interest
based on LIBOR and Prime Rates (8.00% - 9.25%)
|
49,056
|
41,946
|
|||||
Total
debt
|
62,161
|
57,660
|
|||||
Less
revolving loans, classified as current (see below)
|
(49,056
|
)
|
(41,946
|
)
|
|||
Less
current maturities
|
(2,857
|
)
|
(2,857
|
)
|
|||
Long-term
debt
|
$
|
10,248
|
$
|
12,857
|
|||
2006
|
$
|
1,429
|
2007
|
|
2,857
|
2008
|
2,857
|
|
2009
|
5,962
|
|
Pension
Benefits
|
||||||||||||
|
Three
Months
|
Six
Months
|
|||||||||||
Ended
June 30,
|
Ended
June 30,
|
||||||||||||
2006
|
2005
|
2006
|
2005
|
||||||||||
Components
of net periodic benefit cost:
|
|||||||||||||
Service
cost
|
$
|
2
|
$
|
2
|
$
|
4
|
$
|
4
|
|||||
Interest
cost
|
22
|
24
|
44
|
47
|
|||||||||
Expected
return on plan assets
|
(22
|
)
|
(26
|
)
|
(44
|
)
|
(52
|
)
|
|||||
Amortization
of net gain
|
14
|
19
|
28
|
39
|
|||||||||
Net
periodic benefit cost
|
$
|
16
|
$
|
19
|
$
|
32
|
$
|
38
|
|||||
|
Other
Benefits
|
||||||||||||
|
Three
Months
|
Six
Months
|
|||||||||||
|
Ended
June 30,
|
Ended
June 30,
|
|||||||||||
2006
|
2005
|
2006
|
2005
|
||||||||||
Components
of net periodic benefit cost:
|
|||||||||||||
Interest
cost
|
$
|
36
|
$
|
48
|
$
|
72
|
$
|
95
|
|||||
Amortization
of prior service cost
|
14
|
15
|
28
|
30
|
|||||||||
Amortization
of net gain
|
10
|
15
|
20
|
30
|
|||||||||
Net
periodic benefit cost
|
$
|
60
|
$
|
78
|
$
|
120
|
$
|
155
|
|||||
Weighted
|
|||||||||||||
Weighted
|
Average
|
Aggregate
|
|||||||||||
Average
|
Remaining
|
Intrinsic
|
|||||||||||
Exercise
|
Contractual
|
Value
|
|||||||||||
Options
|
Price
|
Life
|
(in
thousands)
|
||||||||||
Outstanding
at December 31, 2005
|
1,856,350
|
$
|
3.99
|
||||||||||
Granted
|
-
|
$
|
0.00
|
||||||||||
Exercised
|
(45,000
|
)
|
$
|
3.26
|
|||||||||
Expired
|
(6,000
|
)
|
$
|
13.57
|
|||||||||
Cancelled
|
(31,000
|
)
|
$
|
5.12
|
|||||||||
Outstanding
at June 30, 2006
|
1,774,350
|
$
|
3.96
|
6.99
years
|
$
|
-
|
|||||||
Vested
and Exercisable at June 30, 2006
|
1,094,350
|
$
|
4.76
|
5.73
years
|
$
|
-
|
|||||||
Non-Vested
at December 31, 2005
|
85,115
|
|||
Granted
|
20,000
|
|||
Vested
|
(44,997
|
)
|
||
Non-Vested
at June 30, 2006
|
60,118
|
|||
Total
Outstanding at June 30, 2006
|
837,281
|
|||
Three
months ended June 30,
|
Six
months ended June 30,
|
||||||||||||||||||
2006
|
2005
|
2006
|
2005
|
||||||||||||||||
Maintenance
Products Group
|
|||||||||||||||||||
Net
external sales
|
$
|
58,334
|
$
|
59,494
|
$
|
112,744
|
$
|
116,706
|
|||||||||||
Operating
income (loss)
|
11
|
(1,401
|
)
|
739
|
(5,914
|
)
|
|||||||||||||
Operating
margin (deficit)
|
0.0
|
%
|
(2.4
|
%)
|
0.7
|
%
|
(5.1
|
%)
|
|||||||||||
Depreciation
and amortization
|
2,326
|
2,556
|
4,657
|
4,962
|
|||||||||||||||
Capital
expenditures
|
855
|
1,502
|
1,508
|
2,792
|
|||||||||||||||
Electrical
Products Group
|
|||||||||||||||||||
Net
external sales
|
$
|
33,746
|
$
|
34,341
|
$
|
59,591
|
$
|
68,381
|
|||||||||||
Operating
income
|
1,922
|
1,154
|
1,981
|
4,067
|
|||||||||||||||
Operating
margin
|
5.7
|
%
|
3.4
|
%
|
3.3
|
%
|
5.9
|
%
|
|||||||||||
Depreciation
and amortization
|
223
|
349
|
462
|
703
|
|||||||||||||||
Capital
expenditures
|
173
|
44
|
336
|
151
|
|||||||||||||||
Total
|
|||||||||||||||||||
Net
external sales
|
-
|
Operating segments |
$
|
92,080
|
$
|
93,835
|
$
|
172,335
|
$
|
185,087
|
|||||||||
|
Total |
$
|
92,080
|
$
|
93,835
|
$
|
172,335
|
$
|
185,087
|
||||||||||
Operating
income (loss)
|
-
|
Operating
segments
|
$
|
1,933
|
$
|
(247
|
)
|
$
|
2,720
|
$
|
(1,847
|
)
|
|||||||
|
-
|
Unallocated corporate |
(2,341
|
)
|
(4,586
|
)
|
(5,416
|
)
|
(6,252
|
)
|
|||||||||
|
-
|
Severance, restructuring, | |||||||||||||||||
|
and related charges |
(71
|
)
|
(466
|
)
|
(853
|
)
|
(638
|
)
|
||||||||||
|
-
|
Gain (loss) on sale of assets |
48
|
352
|
(54
|
)
|
166
|
||||||||||||
Total |
$
|
(431
|
)
|
$
|
(4,947
|
)
|
$
|
(3,603
|
)
|
$
|
(8,571
|
)
|
|||||||
|
|||||||||||||||||||
|
|||||||||||||||||||
Depreciation
and amortization
|
-
|
Operating segments |
$
|
2,549
|
$
|
2,905
|
$
|
5,119
|
$
|
5,665
|
|||||||||
|
-
|
Unallocated corporate |
38
|
36
|
72
|
40
|
|||||||||||||
Total |
$
|
2,587
|
$
|
2,941
|
$
|
5,191
|
$
|
5,705
|
|||||||||||
Capital
expenditures
|
-
|
Operating segments |
$
|
1,028
|
$
|
1,546
|
$
|
1,844
|
$
|
2,943
|
|||||||||
|
-
|
Unallocated corporate |
13
|
-
|
13
|
-
|
|||||||||||||
|
-
|
Discontinued operations |
-
|
11
|
-
|
11
|
|||||||||||||
|
Total |
$
|
1,041
|
$
|
1,557
|
$
|
1,857
|
$
|
2,954
|
||||||||||
|
June
30,
|
December
31,
|
|||||||||||||||||
2006
|
2005
|
||||||||||||||||||
Total
assets
|
-
|
Maintenance Products Group |
$
|
119,440
|
$
|
125,446
|
|||||||||||||
|
-
|
Electrical Products Group |
59,570
|
66,744
|
|||||||||||||||
|
-
|
Other [a] |
5,021
|
9,957
|
|||||||||||||||
|
-
|
Unallocated corporate |
6,349
|
10,536
|
|||||||||||||||
Total |
$
|
190,380
|
$
|
212,683
|
|||||||||||||||
Three
Months Ended June 30,
|
Six
Months Ended June 30,
|
||||||||||||
2006
|
2005
|
2006
|
2005
|
||||||||||
Consolidation
of St. Louis manufacturing/distribution facilities
|
$
|
-
|
$
|
(101
|
)
|
$
|
699
|
$
|
(46
|
)
|
|||
Consolidation
of Glit facilities
|
-
|
567
|
-
|
682
|
|||||||||
Consolidation
of administrative functions for CCP
|
-
|
-
|
-
|
21
|
|||||||||
Shutdown
of Woods Canada manufacturing
|
-
|
-
|
-
|
(19
|
)
|
||||||||
Corporate
office relocation
|
71
|
-
|
154
|
-
|
|||||||||
Total
severance, restructuring and related charges
|
$
|
71
|
$
|
466
|
$
|
853
|
$
|
638
|
|||||
|
One-time
|
Contract
|
||||||||
Termination
|
Termination
|
|||||||||
Total
|
Benefits
[a]
|
|
Costs
[b]
|
|
||||||
Restructuring
liabilities at December 31, 2005
|
$
|
1,845
|
$
|
-
|
$
|
1,845
|
||||
Additions
|
699
|
-
|
699
|
|||||||
Payments
|
(359
|
)
|
-
|
(359
|
)
|
|||||
Restructuring
liabilities at June 30, 2006
|
$
|
2,185
|
$
|
-
|
$
|
2,185
|
||||
One-time
|
Contract
|
|||||||||
Termination
|
Termination
|
|||||||||
Total
|
Benefits
[a]
|
|
Costs
[b]
|
|
||||||
Restructuring
liabilities at December 31, 2005
|
$
|
505
|
$
|
255
|
$
|
250
|
||||
Additions
|
-
|
-
|
-
|
|||||||
Payments
|
(166
|
)
|
(166
|
)
|
-
|
|||||
Restructuring
liabilities at June 30, 2006
|
$
|
339
|
$
|
89
|
$
|
250
|
||||
|
One-time
|
Contract
|
||||||||
|
Termination
|
Termination
|
||||||||
Total
|
Benefits
[a]
|
|
Costs
[b]
|
|
||||||
Restructuring
liabilities at December 31, 2005
|
$
|
195
|
$
|
20
|
$
|
175
|
||||
Additions
|
-
|
-
|
-
|
|||||||
Payments
|
(77
|
)
|
(1
|
)
|
(76
|
)
|
||||
Restructuring
liabilities at June 30, 2006
|
$
|
118
|
$
|
19
|
$
|
99
|
||||
One-time
|
Contract
|
|||||||||
|
Termination
|
Termination
|
||||||||
|
Total
|
Benefits
[a]
|
|
Costs
[b]
|
|
|||||
Restructuring
liabilities at December 31, 2005
|
$
|
717
|
$
|
-
|
$
|
717
|
||||
Additions
|
-
|
-
|
-
|
|||||||
Payments
|
(78
|
)
|
-
|
(78
|
)
|
|||||
Restructuring
liabilities at June 30, 2006
|
$
|
639
|
$
|
-
|
$
|
639
|
||||
One-time
|
||||
|
Termination
|
|||
|
Benefits
[a]
|
|||
Restructuring
liabilities at December 31, 2005
|
$
|
157
|
||
Additions
|
154
|
|||
Payments
|
(311
|
)
|
||
Restructuring
liabilities at June 30, 2006
|
$
|
-
|
||
|
One-time
|
Contract
|
||||||||
Termination
|
Termination
|
|||||||||
|
Total
|
Benefits
[a]
|
|
Costs
[b]
|
|
|||||
Restructuring
liabilities at December 31, 2005
|
$
|
3,419
|
$
|
432
|
$
|
2,987
|
||||
Additions
|
853
|
154
|
699
|
|||||||
Payments
|
(991
|
)
|
(478
|
)
|
(513
|
)
|
||||
Restructuring
liabilities at June 30, 2006 [c]
|
$
|
3,281
|
$
|
108
|
$
|
3,173
|
||||
Maintenance
|
Electrical
|
||||||||||||
Products
|
Products
|
||||||||||||
Total
|
Group
|
Group
|
Corporate
|
||||||||||
Restructuring
liabilities at December 31, 2005
|
$
|
3,419
|
$
|
2,350
|
$
|
912
|
$
|
157
|
|||||
Additions
|
853
|
699
|
-
|
154
|
|||||||||
Payments
|
(991
|
)
|
(525
|
)
|
(155
|
)
|
(311
|
)
|
|||||
Restructuring
liabilities at June 30, 2006
|
$
|
3,281
|
$
|
2,524
|
$
|
757
|
$
|
-
|
|||||
Maintenance
|
Electrical
|
||||||||||||
|
Products
|
Products
|
|||||||||||
Total
|
Group
|
Group
|
Corporate
|
||||||||||
2006
|
$
|
944
|
$
|
707
|
$
|
237
|
$
|
-
|
|||||
2007
|
656
|
412
|
244
|
-
|
|||||||||
2008
|
610
|
359
|
251
|
-
|
|||||||||
2009
|
357
|
332
|
25
|
-
|
|||||||||
2010
|
348
|
348
|
-
|
-
|
|||||||||
Thereafter
|
366
|
366
|
-
|
-
|
|||||||||
Total
Payments
|
$
|
3,281
|
$
|
2,524
|
$
|
757
|
$
|
-
|
|||||
June
30,
|
December
31,
|
||||||
2006
|
2005
|
||||||
Current
assets:
|
|||||||
Accounts
receivable, net
|
$
|
2,804
|
$
|
2,419
|
|||
Inventories,
net
|
-
|
3,422
|
|||||
Other
current assets
|
-
|
5
|
|||||
$
|
2,804
|
$
|
5,846
|
||||
Non-current
assets:
|
|||||||
Intangibles,
net
|
$
|
-
|
$
|
166
|
|||
Property
and equipment, net
|
-
|
1,728
|
|||||
$
|
-
|
$
|
1,894
|
||||
Current
liabilities:
|
|||||||
Accounts
payable
|
$
|
344
|
$
|
1,741
|
|||
Accrued
compensation
|
395
|
530
|
|||||
Accrued
expenses
|
1,974
|
1,219
|
|||||
$
|
2,713
|
$
|
3,490
|
||||
Other
liabilities:
|
$
|
-
|
$
|
1,486
|
|||
Three
Months Ended June 30,
|
Six
Months Ended June 30,
|
||||||||||||
2006
|
2005
|
2006
|
2005
|
||||||||||
Net
sales
|
$
|
3,102
|
$
|
4,375
|
$
|
6,743
|
$
|
8,636
|
|||||
Pre-tax
profit
|
$
|
545
|
$
|
79
|
$
|
337
|
$
|
459
|
|||||
Pre-tax
gain on sale of discontinued operations
|
$
|
70
|
$
|
-
|
$
|
70
|
$
|
-
|
|||||
|
2006
|
2005
|
|||||||||||
(Amounts
in Millions, Except Per Share Data)
|
|||||||||||||
$
|
%
to Sales
|
$
|
%
to Sales
|
||||||||||
Net
sales
|
$
|
92.1
|
100.0
|
$
|
93.8
|
100.0
|
|||||||
Cost
of goods sold
|
79.8
|
86.6
|
83.1
|
88.5
|
|||||||||
Gross
profit
|
12.3
|
13.4
|
10.7
|
11.5
|
|||||||||
Selling,
general and administrative expenses
|
12.7
|
13.8
|
15.6
|
16.6
|
|||||||||
Severance,
restructuring and related charges
|
0.1
|
0.1
|
0.4
|
0.5
|
|||||||||
Gain
of sale of assets
|
(0.1
|
)
|
(0.1
|
)
|
(0.4
|
)
|
(0.4
|
)
|
|||||
Operating
loss
|
(0.4
|
)
|
(0.5
|
)
|
(4.9
|
)
|
(5.3
|
)
|
|||||
Interest
expense
|
(1.7
|
)
|
(1.3
|
)
|
|||||||||
Other,
net
|
-
|
-
|
|||||||||||
Loss
from continuing operations before provision (benefit)
|
|||||||||||||
for
income taxes
|
(2.1
|
)
|
(6.2
|
)
|
|||||||||
Provision
(benefit) for income taxes from continuing operations
|
0.4
|
(0.1
|
)
|
||||||||||
Loss
from continuing operations
|
(2.5
|
)
|
(6.1
|
)
|
|||||||||
Income
from operations of discontinued businesses
|
|||||||||||||
(net
of tax)
|
0.5
|
0.1
|
|||||||||||
Gain
on sale of discontinued businesses (net of tax)
|
0.1
|
-
|
|||||||||||
Loss
before cumulative effect of a change in accounting
principle
|
(1.9
|
)
|
(6.0
|
)
|
|||||||||
Cumulative
effect of a change in accounting principle
|
-
|
||||||||||||
Net
loss
|
$
|
(1.9
|
)
|
$
|
(6.0
|
)
|
|||||||
Loss
per share of common stock - basic and diluted:
|
|||||||||||||
Loss
from continuing operations
|
$
|
(0.31
|
)
|
$
|
(0.77
|
)
|
|||||||
Discontinued
operations
|
0.08
|
0.01
|
|||||||||||
Cumulative
effect of a change in accounting principle
|
-
|
-
|
|||||||||||
Net
loss
|
$
|
(0.23
|
)
|
$
|
(0.76
|
)
|
|||||||
Three
months ended June 30,
|
|||||||||||||||||||
(Amounts
in Millions)
|
|||||||||||||||||||
Operating
income (loss)
|
2006
|
2005
|
Change
|
||||||||||||||||
$
|
%
Margin
|
$
|
%
Margin
|
$
|
%
Margin
|
||||||||||||||
Maintenance
Products Group
|
$
|
-
|
0.0
|
$
|
(1.4
|
)
|
(2.4
|
)
|
$
|
1.4
|
2.4
|
||||||||
Electrical
Products Group
|
1.9
|
5.7
|
1.1
|
3.4
|
0.8
|
2.3
|
|||||||||||||
Unallocated
corporate expense
|
(2.3
|
)
|
(4.6
|
)
|
2.3
|
||||||||||||||
(0.4
|
)
|
(0.4
|
)
|
(4.9
|
)
|
(5.2
|
)
|
4.5
|
4.8
|
||||||||||
Severance,
restructuring and related charges
|
(0.1
|
)
|
(0.4
|
)
|
0.3
|
||||||||||||||
Gain
on sale of assets
|
0.1
|
0.4
|
(0.3
|
)
|
|||||||||||||||
Operating
loss
|
$
|
(0.4
|
)
|
(0.5
|
)
|
$
|
(4.9
|
)
|
(5.3
|
)
|
$
|
4.5
|
4.8
|
||||||
|
2006
|
2005
|
|||||||||||
(Amounts
in Millions, Except Per Share Data)
|
|||||||||||||
$
|
%
to Sales
|
$
|
|
%
to Sales
|
|||||||||
Net
sales
|
$
|
172.3
|
100.0
|
$
|
185.1
|
100.0
|
|||||||
Cost
of goods sold
|
149.2
|
86.6
|
165.5
|
89.4
|
|||||||||
Gross
profit
|
23.1
|
13.4
|
19.6
|
10.6
|
|||||||||
Selling,
general and administrative expenses
|
25.8
|
15.0
|
27.7
|
15.0
|
|||||||||
Severance,
restructuring and related charges
|
0.8
|
0.5
|
0.6
|
0.3
|
|||||||||
Gain
(loss) of sale of assets
|
0.1
|
0.0
|
(0.1
|
)
|
(0.1
|
)
|
|||||||
Operating
loss
|
(3.6
|
)
|
(2.1
|
)
|
(8.6
|
)
|
(4.6
|
)
|
|||||
Interest
expense
|
(3.5
|
)
|
(2.6
|
)
|
|||||||||
Other,
net
|
0.4
|
-
|
|||||||||||
Loss
from continuing operations before provision (benefit)
|
|||||||||||||
for
income taxes
|
(6.7
|
)
|
(11.2
|
)
|
|||||||||
Provision
(benefit) for income taxes from continuing operations
|
0.6
|
-
|
|||||||||||
Loss
from continuing operations
|
(7.3
|
)
|
(11.2
|
)
|
|||||||||
(Loss)
income from operations of discontinued businesses
|
|||||||||||||
(net
of tax)
|
0.3
|
0.5
|
|||||||||||
Loss
on sale of discontinued businesses (net of tax)
|
0.1
|
-
|
|||||||||||
Loss
before cumulative effect of a change in accounting
principle
|
(6.9
|
)
|
(10.7
|
)
|
|||||||||
Cumulative
effect of a change in accounting principle (net of tax)
|
(0.8
|
)
|
|||||||||||
Net
loss
|
$
|
(7.7
|
)
|
$
|
(10.7
|
)
|
|||||||
Loss
per share of common stock - basic and diluted:
|
|||||||||||||
Loss
from continuing operations
|
$
|
(0.92
|
)
|
$
|
(1.40
|
)
|
|||||||
Discontinued
operations
|
0.05
|
0.05
|
|||||||||||
Cumulative
effect of a change in accounting principle
|
(0.09
|
)
|
-
|
||||||||||
Net
loss
|
$
|
(0.96
|
)
|
$
|
(1.35
|
)
|
|||||||
Six
months ended June 30,
|
|||||||||||||||||||
|
(Amounts
in Millions)
|
||||||||||||||||||
Operating
income (loss)
|
2006
|
2005
|
Change
|
||||||||||||||||
$
|
%
Margin
|
$
|
%
Margin
|
$
|
%
Margin
|
||||||||||||||
Maintenance
Products Group
|
$
|
0.7
|
0.7
|
$
|
(5.9
|
)
|
(5.1
|
)
|
$
|
6.6
|
5.8
|
||||||||
Electrical
Products Group
|
2.0
|
3.3
|
4.1
|
5.9
|
(2.1
|
)
|
(2.6
|
)
|
|||||||||||
Unallocated
corporate expense
|
(5.4
|
)
|
(6.3
|
)
|
0.9
|
||||||||||||||
(2.7
|
)
|
(1.6
|
)
|
(8.1
|
)
|
(4.4
|
)
|
5.4
|
2.8
|
||||||||||
Severance,
restructuring and related charges
|
(0.8
|
)
|
(0.6
|
)
|
(0.2
|
)
|
|||||||||||||
(Loss)
gain on sale of assets
|
(0.1
|
)
|
0.1
|
(0.2
|
)
|
||||||||||||||
Operating
loss
|
$
|
(3.6
|
)
|
(2.1
|
)
|
$
|
(8.6
|
)
|
(4.6
|
)
|
$
|
5.0
|
2.5
|
||||||
Contractual
Cash Obligations
|
Total
|
Due
in less than 1 year
|
Due
in 1-3 years
|
Due
in 3-5 years
|
Due
after 5 years
|
|||||||||||
Revolving
credit facility [a]
|
$
|
49,056
|
$
|
49,056
|
$
|
-
|
$
|
-
|
$
|
-
|
||||||
Term
loans
|
13,105
|
2,857
|
10,248
|
-
|
-
|
|||||||||||
Interest
on debt [b]
|
12,135
|
4,786
|
7,349
|
-
|
-
|
|||||||||||
Operating
leases [c]
|
25,673
|
7,781
|
12,373
|
4,571
|
948
|
|||||||||||
Severance
and restructuring [c]
|
1,535
|
804
|
445
|
220
|
66
|
|||||||||||
SESCO
payable to Montenay [d]
|
1,900
|
1,900
|
-
|
-
|
-
|
|||||||||||
Post-retirement
benefits [e]
|
5,831
|
929
|
1,522
|
1,318
|
2,062
|
|||||||||||
Total
Contractual Obligations
|
$
|
109,235
|
$
|
68,113
|
$
|
31,937
|
$
|
6,109
|
$
|
3,076
|
||||||
Other
Commercial Commitments
|
Total
|
Due
in less than 1 year
|
Due
in 1-3 years
|
Due
in 3-5 years
|
Due
after 5 years
|
|||||||||||
Commercial
letters of credit
|
$
|
655
|
$
|
655
|
$
|
-
|
$
|
-
|
$
|
-
|
||||||
Stand-by
letters of credit
|
7,472
|
7,472
|
-
|
-
|
-
|
|||||||||||
Guarantees
[f]
|
-
|
-
|
-
|
-
|
-
|
|||||||||||
Total
Commercial Commitments
|
$
|
8,127
|
$
|
8,127
|
$
|
-
|
$
|
-
|
$
|
-
|
||||||
Three
Months Ended June 30,
|
Six
Months Ended June 30,
|
||||||||||||
2006
|
2005
|
2006
|
2005
|
||||||||||
Consolidation
of St. Louis manufacturing/distribution facilities
|
$
|
-
|
$
|
(101
|
)
|
$
|
699
|
$
|
(46
|
)
|
|||
Consolidation
of Glit facilities
|
-
|
567
|
-
|
682
|
|||||||||
Consolidation
of administrative functions for CCP
|
-
|
-
|
-
|
21
|
|||||||||
Shutdown
of Woods Canada manufacturing
|
-
|
-
|
-
|
(19
|
)
|
||||||||
Corporate
office relocation
|
71
|
-
|
154
|
-
|
|||||||||
Total
severance, restructuring and related charges
|
$
|
71
|
$
|
466
|
$
|
853
|
$
|
638
|
|||||
Total
Expected
Cost
|
Total
Provision to Date
|
||||||
Maintenance
Products Group
|
$
|
21,942
|
$
|
21,692
|
|||
Electrical
Products Group
|
12,776
|
12,776
|
|||||
Corporate
|
12,323
|
12,227
|
|||||
$
|
47,041
|
$
|
46,695
|
||||
One-time
|
Contract
|
|||||||||
Termination
|
Termination
|
|||||||||
Total
|
Benefits
[a]
|
|
Costs
[b]
|
|
||||||
Restructuring
liabilities at December 31, 2005
|
$
|
3,419
|
$
|
432
|
$
|
2,987
|
||||
Additions
|
853
|
154
|
699
|
|||||||
Payments
|
(991
|
)
|
(478
|
)
|
(513
|
)
|
||||
Restructuring
liabilities at June 30, 2006 [c]
|
$
|
3,281
|
$
|
108
|
$
|
3,173
|
||||
- |
Increases
in the cost of, or in some cases continuation of, the current price
levels
of plastic resins, copper, paper board packaging, and other raw
materials.
|
- |
Our
inability to reduce product costs, including manufacturing, sourcing,
freight, and other product costs.
|
- |
Greater
reliance on third parties for our finished goods as we increase the
portion of our manufacturing that is outsourced.
|
- |
Our
inability to reduce administrative costs through consolidation of
functions and systems improvements.
|
- |
Our
inability to execute our systems integration plan.
|
- |
Our
inability to successfully integrate our operations as a result of
the
facility consolidations.
|
- |
Our
inability to achieve product price increases, especially as they
relate to
potentially higher raw material
costs.
|
- |
The
potential impact of losing lines of business at large mass merchant
retailers in the discount and do-it-yourself
markets.
|
- |
Competition
from foreign competitors.
|
- |
The
potential impact of rising interest rates on our LIBOR-based Bank
of
America Credit Agreement.
|
- |
Our
inability to meet covenants associated with the Bank of America Credit
Agreement.
|
- |
The
potential impact of rising costs for insurance for properties and
various
forms of liabilities.
|
- |
The
potential impact of changes in foreign currency exchange rates related
to
our foreign operations.
|
- |
Labor
issues, including union activities that require an increase in production
costs or lead to a strike, thus impairing production and decreasing
sales.
We are also subject to labor relations issues at entities involved
in our
supply chain, including both suppliers and those involved in
transportation and shipping.
|
- |
Changes
in significant laws and government regulations affecting environmental
compliance and income taxes.
|
(a) |
Evaluation
of Disclosure Controls and
Procedures
|
(b) |
Change
in Internal Controls
|
· |
Implementation
of short term corrective actions in shipping and receiving
-
Revised shipping, receiving, physical inventory, period end cut-off
and
returned goods procedures have been issued. Training to reinforce
the
importance of the physical verification was provided to all appropriate
material handlers. Products loaded for shipment are now verified
against
system generated bill of ladings. A receiving log was implemented
in the
first quarter of 2005 and is reviewed at least weekly by the distribution
manager.
|
· |
Establishment
of improved interim recording of raw material usage - The shop floor
module in PRMS (the facility’s ERP system) was activated on July 1, 2005.
Large raw material variances are now reviewed and/or isolated by
work
order to allow bill of material (“BOM”) corrections as required.
Miscellaneous inventory transactions are being downloaded and reviewed
at
least weekly by cost accounting. A supplemental system was also
re-implemented to allow the daily review of costed non-woven production
runs to identify process or material variances. The output of this
system
yields a daily cost per yard of non-woven material produced, as well
as an
average cost per yard over multiple batches/runs. This information
was
used as a reference point and allowed material cost verifications
with
PRMS formula BOMs.
|
· |
Reestablishment
of a monthly physical inventory until the PRMS perpetual inventory
process
is re-implemented - This location’s monthly physical inventory was
reinstituted for the February 2005 accounting close. We continue
taking a
monthly physical inventory throughout the remaining part of 2005
and into
2006.
|
· |
Establishment
of security measures to mitigate the risk of theft - All employees
were issued parking permits to help identify on-site traffic of
non-employees. A security camera system was installed and became
operational in June 2005. Cameras provide monitoring of key plant
areas by
both security personnel and key
managers.
|
· |
Improvement
in bill of material and routing accuracy - In July 2005, a BOM
accuracy project was completed which encompassed the review of the
most
significant BOMs across all product lines. Efforts are now ongoing
to
review remaining BOMs, prioritizing based on sales volumes and comparative
analysis with other BOMs of like material/sizes. All remaining significant
BOMs, based on volume levels, were updated by February 1,
2006.
|
· |
Proper
staffing and planning of PRMS re-implementation - The PRMS
re-implementation was completed at the end of July 2005. The Material
Planning and Scheduling module of PRMS was completed in the fourth
quarter
of 2005. The total re-implementation was facilitated by a consultant
with
expertise with both PRMS and ERP system implementation across varied
industries.
|
· |
Establishment
of procedures for production reporting and inventory transactions -
Detailed procedures for reporting of production in PRMS have been
issued.
The implementation of scanning for inventory transactions was completed
in
August and documented procedures were completed in September, 2005.
Any
additional procedures will be finalized and documented when they
are
validated.
|
· |
Activation
of PRMS production and inventory system - The system was fully
activated on February 1, 2006 which allows the accumulation and reporting
of transactions, maintenance of perpetual inventory records, and
the
calculation of standard cost and related variances. The system will
continue to operate in parallel with the monthly physical inventory
until
all significant variances will be identified and
corrected.
|
CLASS
I DIRECTORS:
|
||
Name
|
Votes
For
|
Votes
Withheld
|
Robert
M. Baratta
|
7,214,652
|
366,177
|
Daniel
B. Carroll
|
7,275,701
|
305,128
|
Wallace
E. Carroll, Jr.
|
7,274,258
|
306,571
|
Anthony
T. Castor III
|
7,482,647
|
98,182
|
Votes
For
|
Votes
Against
|
Votes
Abstained
|
7,562,292
|
17,126
|
1,410
|
Exhibit
Number
|
Exhibit
Title
|
|
2
|
Preferred
Stock Purchase and Recapitalization Agreement, dated as of June 2,
2001
(incorporated by reference to Annex B to the Company’s Proxy Statement on
Schedule 14A filed June 8, 2001).
|
*
|
3.1
|
The
Amended and Restated Certificate of Incorporation of the Company
(incorporated by reference to Exhibit 3.1 of the Company’s Current Report
on Form 8-K on July 13, 2001).
|
*
|
3.2
|
The
By-laws of the Company, as amended (incorporated by reference to
Exhibit
3.1 of the Company’s Quarterly Report on Form 10-Q filed May 15,
2001).
|
*
|
4.1
|
Rights
Agreement dated as of January 13, 1995 between Katy and Harris Trust
and
Savings Bank as Rights Agent (incorporated by reference to Exhibit
2.1 of
the Company’s Form 8-A filed January 17, 1995).
|
*
|
4.1a
|
First
Amendment to Rights Agreement, dated as of October 30, 1996, between
Katy
and Harris Trust and Savings Bank as Rights Agent.
|
**
|
4.1b
|
Second
Amendment to Rights Agreement, dated as of January 8, 1999, between
Katy
and LaSalle National Bank as Rights Agent (incorporated by reference
to
Exhibit 4.1(b) of the Company’s Annual Report on Form 10-K filed March 18,
1999).
|
*
|
4.1c
|
Third
Amendment to Rights Agreement, dated as of March 30, 2001, between
Katy
and LaSalle Bank, N.A. as Rights Agent (incorporated by reference
to
Exhibit (e) (3) to the Company’s Solicitation/Recommendation Statement on
Schedule 14D-9 filed April 25, 2001).
|
*
|
4.1d
|
Forth
Amendment to Rights Agreement, dated as of June 2, 2001, between
Katy and
LaSalle Bank N.A. as Rights Agent.
|
**
|
10.1
|
Amended
and Restated Katy Industries, Inc. 1995 Long-Term Incentive
Plan.
|
**
|
10.2
|
Katy
Industries, Inc. Non-Employee Director Stock Option Plan (incorporated
by
reference to Katy’s Registration Statement on Form S-8 filed June 21,
1995).
|
*
|
10.3
|
Katy
Industries, Inc. Supplemental Retirement and Deferral Plan effective
as of
June 1, 1995 (incorporated by reference to Exhibit 10.4 to Company’s
Annual Report on Form 10-K filed April 1, 1996).
|
*
|
10.4
|
Katy
Industries, Inc. Directors’ Deferred Compensation Plan effective as of
June 1, 1995 (incorporated by reference to Exhibit 10.5 to Company’s
Annual Report on Form 10-K filed April 1, 1996).
|
*
|
10.5
|
Employment
Agreement dated as of June 1, 2005 between Anthony T. Castor III
and the
Company (incorporated by reference to Exhibit 10.1 to the Company’s
Quarterly Report on Form 10-Q filed August 15, 2005).
|
*
|
10.6
|
Katy
Industries, Inc. 2005 Chief Executive Officer’s Plan (incorporated by
reference to Exhibit 10.4 to the Company’s Quarterly Report on Form 10-Q
filed August 15, 2005).
|
*
|
10.7
|
Employment
Agreement dated as of September 1, 2001 between Amir Rosenthal and
the
Company (incorporated by reference to Exhibit 10.2 to the Company’s
Quarterly Report on Form 10-Q dated November 14, 2001).
|
*
|
10.8
|
Amendment
dated as of October 1, 2004 to the Employment Agreement dated as
of
September 1, 2001 between Amir Rosenthal and the Company (incorporated
by
reference to Exhibit 10.2 to the Company’s Quarterly Report on Form 10-Q
dated November 10, 2004).
|
*
|
10.9
|
Katy
Industries, Inc. 2001 Chief Financial Officer’s Plan (incorporated by
reference to Exhibit 10.3 to the Company’s Quarterly Report on Form 10-Q
dated November 14, 2001).
|
*
|
10.10
|
Katy
Industries, Inc. 2002 Stock Appreciation Rights Plan, dated November
21,
2002, (incorporated by reference to Exhibit 10.17 to the Company’s Annual
Report on Form 10-K dated April 15, 2003).
|
*
|
10.11
|
Katy
Industries, Inc. Executive Bonus Plan dated December 2001 (incorporated
by
reference to Exhibit 10.18 to the Company’s Annual Report on Form 10-K
dated April 15, 2005).
|
*
|
10.12
|
Amended
and Restated Loan Agreement dated as of April 20, 2004 with Fleet
Capital
Corporation, (incorporated by reference to Exhibit 10.1 to the Company’s
Quarterly Report on Form 10-Q dated May 10, 2004).
|
*
|
10.13
|
First
Amendment to Amended and Restated Loan Agreement dated as of June
29, 2004
with Fleet Capital Corporation, (incorporated by reference to Exhibit
10.1
to the Company’s Quarterly Report on Form 10-Q dated August 16,
2004).
|
*
|
10.14
|
Second
Amendment to Amended and Restated Loan Agreement dated as of March
29,
2005 with Fleet Capital Corporation (incorporated by reference to
Exhibit
10.1 of the Company’s Current Report on Form 8-K filed April 1,
2005).
|
*
|
10.15
|
Third
Amendment to Amended and Restated Loan Agreement dated as of April
13,
2005 with Fleet Capital Corporation (incorporated by reference to
Exhibit
10.17 of the Company’s Annual Report on Form 10-K dated April 15,
2005).
|
*
|
10.16
|
Fourth
Amendment to Amended and Restated Loan Agreement dated as of June
8, 2005
with Fleet Capital Corporation (incorporated by reference to Exhibit
10.2
of the Company’s Quarterly Report on Form 10-Q dated August 15,
2005).
|
*
|
10.17
|
Fifth
Amendment to Amended and Restated Loan Agreement dated as of August
4,
2005 with Fleet Capital Corporation (incorporated by reference to
Exhibit
10.3 of the Company’s Quarterly Report on Form 10-Q dated August 15,
2005).
|
*
|
10.18
|
Sixth
Amendment to Amended and Restated Loan Agreement dated as of March
9, 2006
with Fleet Capital Corporation (incorporated by reference to Exhibit
10.18
of the Company’s Annual Report on Form 10-K dated March 31,
2006).
|
*
|
10.19
|
ISDA
Master Agreement and Schedule dated as of August 11, 2005, between
Bank of
America, N.A. and Katy Industries, Inc. and Transaction Confirmation
dated
as of August 16, 2005 (incorporated by reference to Exhibit 10.1
of the
Company’s Quarterly Report on Form 10-Q dated November 15,
2005).
|
*
|
10.20
|
Amended
and Restated Katy Industries, Inc. 1997 Long-Term Incentive
Plan.
|
**
|
31.1
|
CEO
Certification pursuant to Securities Exchange Act Rule 13a-14, as
adopted
pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.
|
**
|
31.2
|
CFO
Certification pursuant to Securities Exchange Act Rule 13a-14, as
adopted
pursuant to Section 302 of the Sarbanes-Oxley Act of 2002
|
**
|
32.1
|
CEO
Certification required by 18 U.S.C. Section 1350, as adopted pursuant
to
Section 906 of the Sarbanes-Oxley Act of 2002.
|
**#
|
32.2
|
CFO
Certification required by 18 U.S.C. Section 1350, as adopted pursuant
to
Section 906 of the Sarbanes-Oxley Act of 2002.
|
**#
|