SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
----------------------
FORM 10-K
[ X ] ANNUAL REPORT PURSUANT TO SECTION 13 OR 15 (d) OF THE SECURITIES
EXCHANGE ACT OF 1934
For the Fiscal year Ended December 31, 2001
[ ] TRANSITION REPORT PURSUANT TO SECTION 13 OR 15 (d) OF THE
SECURITIES EXCHANGE ACT OF 1934
For the Transition Period From _____________to ______________.
COMMISSION FILE NUMBER 000-25939
THE KELLER MANUFACTURING COMPANY, INC.
(Exact name of registrant as specified in its charter)
INDIANA 35-0435090
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(State or other jurisdiction of (I.R.S. Employer
incorporation or organization) identification No.)
701 N. WATER ST.
CORYDON, INDIANA 47112
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(Address of principal executive offices) (Zip Code)
Registrant's telephone number, including area code 812-738-2222
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Securities registered pursuant to Section 12(b) of the Act: None
Securities registered pursuant to Section 12(g) of the Act: Common Stock - No
Par Value
Indicate by check mark whether the registrant (1) has filed all reports required
to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during
the preceding 12 months (or for such shorter period that the registrant was
required to file such reports), and (2) has been subject to filing requirements
for the past 90 days.
Yes |X| No | |
Indicate by check mark if disclosure of delinquent filers pursuant to Item 405
of Regulation S-K is not contained, to the best of registrant's knowledge, in
definitive proxy or information statements incorporated by reference in Part III
of this Form 10-K or any amendment to this Form 10-K |X|
The aggregate market value of common stock, (the only class of
equity outstanding), held by non-affiliates of the Registrant
based on the closing price of the common shares of $2.85 as
of February 28, 2002 was approximately $15,430,216.
The number of shares outstanding of the registrant's
common stock as of February 28,2002 was 5,414,111.
DOCUMENTS INCORPORATED BY REFERENCE
Portions of the 2001 Annual Report to Shareholders are incorporated
by reference into Parts I, II and IV. Portions of the definitive
Proxy Statement dated March 26, 2002 to be delivered to
shareholders in connection with the Annual Meeting
of Shareholders to be held April 26, 2002
are incorporated by reference into Part III.
TABLE OF CONTENTS
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Number Page
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PART I
ITEM 1 Business 3
ITEM 2 Properties 7
ITEM 3 Legal Proceedings 7
ITEM 4 Submission of Matters to a Vote of Security Holders 7
PART II
ITEM 5 Market for Registrant's Common Equity and Related 8
Stockholder Matters
ITEM 6 Selected Financial Data 8
ITEM 7 Management's Discussion and Analysis of Financial 8
Conditions and Results of Operations
ITEM 8 Financial Statements and Supplementary Data 8
ITEM 9 Changes in and Disagreements with Accountants on 8
Accounting and Financial Disclosures
PART III
ITEM 10 Directors and Executive Officers of the Registrant 9
ITEM 11 Executive Compensation 9
ITEM 12 Security Ownership of Certain Beneficial Owners 9
And Management
ITEM 13 Certain Relationships and Related Transactions 9
PART IV
ITEM 14 Exhibits, Financial Statement Schedules and Reports 10
On Form 8-K
Signatures 11
PART I
Certain Items of this Annual Report or Form 10-K (the "Report") contain
certain statements that are "forward-looking statements" within the meaning
of Section 27A of the Securities Act of and Section 21E of the Securities
Exchange Act of 1934, as amended. Those statements appear in a number of
places in this Report and may include statements regarding the intent,
belief or current expectations of the Company or its officers with respect
to (i) the Company's strategic plans, (ii) the policies of the Company
regarding capital expenditures, financing and other matters, and (iii)
industry trends affecting the Company's financial condition or results of
operations. Readers of this Report are cautioned that reliance on any
forward-looking statement involves risks and uncertainties. Although The
Keller Manufacturing Company, Inc. (the "Company") believes that the
assumptions on which the forward-looking statements contained herein are
based are reasonable, any of those assumptions could prove to be inaccurate
given the inherent uncertainties as to the occurrence or nonoccurrence of
future events. There can be no assurance that the forward looking
statements contained in this Report will prove to be accurate. The
inclusion of a forward-looking statement herein should not be regarded as a
representation by the Company that the Company's objectives will be
achieved.
Item 1. Business
General Development of Business
The Company history dates back to 1866 when the "Keller Store" in Corydon,
Indiana was established. From that time, the operation entered into various
businesses, including running an electrical light plant, manufacturing spokes
for farm wagons, operation in a hub-mill, farm wagon production, building barns,
producing wooden porch furniture, wooden truck bodies and refrigerator boxes, as
well as making end tables, magazine racks, chair parts - and by 1933, a drop
leaf table. The Company was incorporated in 1906 under the laws of the State of
Indiana.
Over 300,000 wagons were built from 1901-1912. In 1942, however, the invention
of the farm tractor made the Keller wagon obsolete thereby causing the Company
to end its wagon production. In late 1943, the Company developed household
furniture, including breakfast room suites and dinettes. In the early 1960's,
The Company introduced its first bedroom group. A new plant was built at
Culpeper, Virginia in 1965 and a third plant was built in 1973 at New Salisbury,
Indiana. In 1979, the Company leased four trucks and trailers to deliver
furniture directly to their furniture dealers. In 1996, the Company formed
Keller Dedicated Trucking, Inc. ("Keller Trucking"), a wholly owned subsidiary
of the Company. Its primary function is to provide delivery services for the
Company. Keller Trucking also transfers materials between plants, provides
delivery for some purchased merchandise and provides backhaul services for other
companies when available. Keller Trucking currently operates with 22 trucks
delivering approximately 80% of the Company's finished products
Narrative Description of Business
The Company designs and manufactures various styles of solid wood dining room,
bedroom, and occasional furniture. The Company manufactures nine different
product lines: eight made of oak, and one line made of cherry. The dining room
furniture consists of tables, chairs, chinas and servers. The bedroom products
consist of beds, dressers, chests, nightstands and mirrors. The primary items
manufactured for occasional are cocktail, end, sofa tables, and small
entertainment units. Some units from bedroom furniture are also used as
entertainment units.
Certain production facilities manufacture specific product lines in response to
customer orders. Lumber is kiln dried at each facility.
- 3 -
In October 2001, The Company introduced its American Restoration collection at
the High Point Market. Arts and Crafts style inspired the collection. The
elements present in the group include exposed dovetail joints, walnut plug
joinery, trellis grill work, exclusively designed hardware and straw glass which
give it an authentic look but today's modern consumer appeal. American
Restoration Dining began shipping in November 2001, and the balance of the
collection began shipping during the first quarter 2002.
Another collection, Transitions, introduced in October 2000 began shipping in
March 2001. The collection generated approximately $6.9 million in orders in
2001. The PGA Tour Home Collection was discontinued in 2001.
The Company's products are sold primarily in the middle to upper price range.
The 2001 breakdown of sales per category represents a planned shift of emphasis
to the Company becoming a complete resource for retailers in Dining, Bedroom,
and Occasional. Net sales of Bedroom accounted for approximately 49.6% of total
volume in 2001, compared to approximately 49.8% in 2000. Dining sales were
approximately 44.4% of total volume in 2001, compared to approximately 48% in
2000, and Occasional approximately 6% of total volume in 2001, an increase of
approximately 4.8% over 2000's approximate 1.2% total. The retail price range of
Keller products in Bedroom are $1,999 - $4,999, Dining $1,499 - $4,999, and
Occasional $899 - $1,999.
The Company sells its products nationwide through a sales force, with
approximately 85% of the sales force being company employees and approximately
15% independent representatives. The Company sells to approximately 1,500
national, regional and local furniture chains, independent furniture retailers
and warehouse showrooms. The Company shows and promotes its product at the
International Home Furnishings Center in High Point, North Carolina where it
leases a 7,000 sq. ft. showroom. The Company uses a pre-established fund to
advertise and promote the Company's products. The fund for 2001 contributed
approximately $1.3 million in additional advertising, including TV commercials
and CD ROMs made available to retailers.
Raw Materials
The Company purchases lumber from approximately 50 suppliers with no single
supplier representing over 10% of purchases. There has been no difficulty
experienced in obtaining lumber. There are three primary grades of hardwood: #1,
#2 and #3. #1 is the highest quality with the least defects while #3 has the
greatest number of defects. The Company purchases #2 grade lumber, cuts out any
defects and uses this refined #2 in its manufacturing process. This practice
allows the Company to manufacture furniture of comparable quality to furniture
made from #1 grade lumber but on a more cost efficient basis. The cost of lumber
declined during 2001 from an average cost of $506 per 1,000 feet in 2000 to $424
per 1,000 feet in 2001. The purchase of lumber during the year depends on the
Company's orders received from our customers.
Patents, Trademarks, Licenses or Franchises
The Company currently holds no patents or franchises. The Company Logo was
changed in 2000 to "KELLER FURNITURE", replacing the old Company Logo after
approximately forty years. The new Logo is not considered to provide any
financial benefit to the Company. The Logo was changed for trade and consumer
purposes only.
Seasonal Effects
In previous years the Company has experienced some seasonal effects on sales.
The slowest period for sales has traditionally been the second quarter. However,
in 2000 and 1999 the slowest period for sales was the fourth quarter. And while
the third quarter has traditionally been the strongest quarter for sales, in
2000 and 1999 the first quarter was the strongest. This was due in part to the
orders taken on new introductions in 3rd and 4th quarters and shipped in the
first quarter of 2000 and 1999. The economy and consumer confidence had a large
effect on 2001. Orders were down all four quarters with an overall decline of
approximately 9.0% compared to orders written in 2000.
- 4 -
Working Capital
The furniture manufacturing industry has no standard guideline for carrying
working capital and the Company does not require its retailers to maintain
minimum working capital. The Company meets dealer demand by scheduling cut
packages based on current and estimated sales mixes with high volume dealers
receiving priority on quick shipment of merchandise.
The Company offers extended payment terms to customers for damaged items that
are repairable. Each retailer is provided a list of items that are deemed
replaceable and will be given an allowance for shop time to repair. Usually, any
defect to merchandise that would require larger than a 25% discount will be
returned to the Company. Since the Company has its own trucking subsidiary, it
is better equipped than the industry in general to receive returned merchandise
on a cost-effective basis. Due to the high shipping costs by outside sources,
most of the industry offers discounts for dealers to keep defective merchandise.
Customers
The Company's twenty largest customers accounted for approximately 47.5% of its
net sales in 2001. The Company's largest customer, Haverty's, accounted for
approximately 15% of the Company's net sales in 2001. The loss of Haverty's
Furniture or another large customer could have a material adverse effect on the
Company.
Backlog
Backlog orders believed to be firm as of December 31, 2001 were approximately
$1.8 million. Currently, all orders placed with the Company will be filled and
shipped as ordered within four weeks. The Company does, however, allow
modification or cancellations of orders up to the time the product is loaded for
shipment. A cancellation at such a late stage is subject to a monetary penalty
and occurs only infrequently.
Competition
As the Company continues to expand its product line, it becomes more difficult
to identify a specific competitive market. The Company currently manufactures
and competes in lines of bedroom, dining room and occasional furniture, and
sells to retailers nationwide. The Company's products fall in the middle to
upper-middle price line. The Company's direct competitors include Kincaid
Furniture Co. ("Kincaid"), Cochrane Furniture ("Cochrane"), Sumter Cabinet co.
("Sumter"), Mobel, Inc. ("Mobel"), Durham Furniture, Inc. ("Durham"), Richardson
Brothers Co. ("Richardson Brothers") and Kimball Furniture ("Kimball"). Kincaid
is considered the Company's most direct competitor, and its dining, bedroom and
occasional groups are the strongest competing products against the Company's
product lines. Cochrane and Sumter are the next most competitive companies. They
both compete in the dining and bedroom categories. Cochrane is strongest in
dining room lines and Sumter is strongest in the bedroom lines. Both Mobel and
Durham compete directly with the Company in bedroom lines. Richardson Brothers
and Kimball both offer lines in dining room and bedroom categories but don't
offer the number of products within these groups as the aforementioned direct
competitors.
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There is a significant amount of furniture being imported from China. According
to a Furniture/Today article, dated February 4, 2002, Volume 25, Number 22,
Mann, Armistead & Epperson Industry Analysts estimated
42% of the wood products sold in the United States in 2001 were imports. The
predominant make-up of the product imported were veneers and in styles with an
ornate look. The Company currently imports 6% of its line, with the bulk of such
imports being wrought iron from Mexico.
To combat imports in 2001, Keller concentrated its efforts on educating the
retail floor salespeople on Keller product. The three main areas that
differentiate Keller are:
1. Solid Wood
2. Made In America
3. Quality Construction
The Company has several attributes, which it believes, when combined, afford it
a competitive advantage. The Company specializes in dining room and bedroom
furniture made of solid wood. Solid wood furniture is considered higher quality
than furniture made from composite materials. This is a valuable marketing tool
in selling to consumers. Moreover, the Company applies a protective finish to
its products, which is more durable than that of most of its competitors. The
Company's products are priced competitively for high quality furniture and the
range of retail prices available for various product lines makes its products
available to a wide range of customers.
The Company also believes it is positioned to effectively compete based on
customer service. The Company's product line may currently be made available for
delivery to a customer in four weeks. Products are cut based on demand, which
also improves the average delivery time. Moreover, the Company manufactures most
of its own parts and dries all of its own lumber. All bending for chairs,
headrests and bows are also processed internally. Finally, Keller Trucking
delivers 80% of the Company's merchandise which is shipped. This allows the
furniture to be delivered faster and at a lower cost than using outside
resources. These factors allow the Company to produce quality furniture at
competitive prices.
Environmental Matters
Pursuant to an Agreed Order with the Indiana Department of Environmental
Management, the Company has procedural and record keeping improvements have been
put in place to prevent air quality violations. Conditions of the Agreed Order
consisted of completion of a Supplemental Environmental Project (SEP). The SEP
consists of installing filters on all existing spray booths at the Corydon Plant
to more efficiently capture over spray from the spray finishing operation. The
SEP must be completed by May 23, 2002. Environment projects completed in 2001
include construction of a finish material storage structure at the Culpeper
plant and installation of improved monitoring equipment on the New Salisbury
sewage treatment plant.
Employees
The Company employed 530 individuals as of December 31, 2001, consisting of 432
hourly employees, 69 salaried employees, 21 salesmen and 8 executive officers.
None of the employees belong to a labor union. The Company believes its
relations with its employees are good.
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Item 2. Properties
The following table sets forth certain information concerning the Company's
manufacturing facilities: All manufacturing facilities and properties listed
below are owned by the Company.
Approximate Size
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Location Description In Sq. Ft. Acres
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Corydon, Indiana Corporate Office 236,681 63.07
and Manufacturing
New Salisbury, Indiana Manufacturing 203,004 91.39
Culpeper, Virginia Manufacturing 185,660 60.18
The Corydon, Indiana plant is the original facility that the Company has
operated since its incorporation in 1906. In 1966, the Culpeper, Virginia plant
was built, and its twin plant in New Salisbury, Indiana was built in 1974. In
2000, the Company increased the shipping capacity by 18,000 Sq. Ft. at our New
Salisbury plant.
Item 3. Legal Proceedings
The Company is involved in routine litigation incidental to the conduct of its
business. The Company believes that the outcome of these routine matters will
not have a material adverse effect on its business, operations or financial
condition.
Item 4. Submission of Matters to a vote of Security Holders
No matters were submitted to a vote of security holders of the Company during
the fourth quarter of 2001.
- 7 -
Part II
Item 5. Market for Registrant's Common Equity and Related Stockholder Matters
The information set forth on page 8 of the 2001 Annual Report to Shareholders is
incorporated herein by reference as filed herewith as Exhibit 13.01.
Item 6. Selected Financial Data
The information set forth on Page 1 of the 2001 Annual Report to Shareholders is
incorporated herein by reference and is filed herewith as Exhibit 13.01.
Item 7. Management's Discussion and Analysis of Financial Condition and Results
of Operations
The information set forth on pages 2-8 of the 2001 Annual Report to Shareholders
is incorporated herein by reference as filed herewith as Exhibit 13.01.
Item 8. Financial Statements and Supplementary Data
The following financial statements for the Company and independent auditors
report set forth on pages 9-21 of the 2001 Annual Report to Shareholders is
incorporated herein by reference and is filed herewith as Exhibit 13.01.
o Independent Auditor's Report
o Consolidated Balance Sheets as of December 31, 2001 and 2000
o Consolidated Statements of Operations for the three years ended December
31, 2001
o Consolidated Statements of Stockholders' Equity for the three years ended
December 31, 2001
o Consolidated Statements of Cash Flows for the three years ended December
31, 2001
o Notes to Consolidated Financial Statements
Item 9. Changes in and Disagreements with Accountants on Accounting and
Financial Disclosure
There have been no disagreements with the Company's independent auditors on any
matter of accounting principles or practices, financial statement disclosure, or
auditing scope or procedure or any reportable events.
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PART III
Item 10. Directors and Executive Officers of the Registrant
Information with respect to Directors may be found under the caption "Directors
and Executive Management Officers" on pages 4-6 of the Company's Proxy Statement
dated March 26, 2002, for the Annual Meeting of Shareholders to be held on April
26, 2002 (the "Proxy Statement"). Such information is incorporated herein by
reference.
Item 11. Executive Compensation
The information in the Proxy Statement set forth under the caption "Executive
Compensation" on page 7 is incorporated herein by reference.
Item 12. Security Ownership of Certain Beneficial Owners and Management
The information set forth in the Proxy Statement under the caption "Security
Ownership of Certain Beneficial Owners and Management" on pages 2 and 3 are
incorporated herein by reference.
Item 13. Certain Relationships and Related Transactions
None.
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PART IV
Item 14. Exhibits, Financial Statement Schedules and Reports on Form 8-K
(a) The following documents are filed as a part of this report.
(1) The financial statements set forth under Item 8 of this report on Form
10-K are incorporated herein by reference.
Location in 10-K
----------------
Independent Auditor's Report Item 8
Consolidated Balance Sheets as of December 31, 2001 and 2000 Item 8
Consolidated Statements of Operations for the three years
ended December 31, 2001 Item 8
Consolidated Statements of Stockholders' Equity for the
three years ended December 31, 2001 Item 8
Consolidated Statements of Cash Flows for the three years
ended December 31, 2001 Item 8
Notes to Consolidated Financial Statements Item 8
(2) Financial Statement Schedule
Schedules for the year ended December 31, 2001 and 2000 are included
herein.
II. VALUATION AND QUALIFYING ACCOUNTS
All other schedules are omitted, as the required information is
inapplicable or the information is presented in the consolidated
financial statements or the related notes.
(3) Exhibits
See the Index to Exhibits on page 12 of this Form 10-K.
(b) Reports on Form 8-K
No reports on Form 8-K were filed during fourth quarter of the
Company's fiscal year.
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Pursuant to the requirements of Section 13 or 15(d) of the Securities
Exchange Act of 1934, the registrant has duly caused this report to be signed on
its behalf by the undersigned thereunto duly authorized.
THE KELLER MANUFACTURING COMPANY, INC.
By /s/ Steven W. Robertson
--------------------------------------------
Steven W. Robertson
President and Chief Executive Officer
March 28, 2002
Pursuant to the requirements of the Securities Exchange Act of 1934, this
report has been signed below by the following persons on behalf of the
registrant and in the capacities and on the dates indicated.
/s/ Steven W. Robertson
- ------------------------------- President, Chief Executive Officer
Steven W. Robertson and Director
March 28, 2002
/s/ Robert W. Byrd
- ------------------------------- Chairman and Director
Robert W. Byrd March 28, 2002
/s/ Danny L. Utz
- ------------------------------- Vice President-Finance
Danny L. Utz (Principal Financial and Accounting
Oficer) and Director
March 28, 2002
/s/ Scott A. Armstrong
- ------------------------------- Director
Scott A. Armstrong March 28, 2002
/s/ Ronald W. Humin
- ------------------------------- Director
Ronald W. Humin March 28, 2002
/s/ Philip L. Jacobs
- ------------------------------- Director
Philip L. Jacobs March 28, 2002
/s/ Marvin C. Miller
- ------------------------------- Director
Marvin C. Miller March 28, 2002
/s/ John C. Schenkenfelder
- ------------------------------- Director
John C. Schenkenfelder March 28, 2002
/s/ Bradford T. Ray
- ------------------------------- Director
Bradford T. Ray March 28, 2002
- 11 -
INDEX TO EXHIBITS
Exhibit
Number Description of Exhibit
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3.01 Restated Articles of Incorporation of the Company (Incorporated
by reference to Exhibit 3.01 to the Company's Amendment No. 2 to
its Registration Statement on Form 10 filed July 23, 1999, File
No. 000-25939).
3.02 Articles of Amendment of the Restated Articles of Incorporation
of the Company (Incorporated by reference to Exhibit 3.02 to the
Company's Amendment No. 2 to its Registration Statement on Form
10, filed July 23, 1999, File No. 000-25939).
3.03 Articles of Amendment of the Restated Articles of Incorporation
of the Company (Incorporated by reference to Exhibit 3.03 to the
Company's Amendment No. 2 to its Registration Statement on Form
10, filed July 23, 1999, File No. 000-25939).
3.04 Bylaws of the Company (Incorporated by reference to Exhibit 3.04
to the Company's Amendment No. 2 to its Registration Statement on
Form 10, filed July 23, 1999, File No. 000-25939).
4.01 Form of Shareholders Rights Agreement, dated as of December 18,
1998, by and between the Company and J.J.B. Hilliard, W.L. Lyons,
Inc. as Rights Agent (Incorporated by reference to Exhibit 4.01
to the Company's Amendment No. 2 to its Registration Statement on
Form 10, filed July 23, 1999, File No. 000-25939).
4.02 See Article IV of the Restated Articles of Incorporation of the
Company found in Exhibit 3.01 (Incorporated by reference to
Exhibit 4.02 to the Company's Amendment No. 2 to its Registration
Statement on Form 10, filed July 23, 1999, File No. 000-25939).
4.03 See Article II of the Bylaws of the Company found in Exhibit 3.04
(Incorporated by reference to Exhibit 4.03 to the Company's
Amendment No. 2 to its Registration Statement on Form 10, filed
July 23, 1999, File No. 000-25939).
10.01 Form of "Lease of Space in International Home Furnishings Center"
dated as of May 1, 1999, by and between the Company and
International Home Furnishings Center, Inc. (Incorporated by
reference to Exhibit 10.01 to the Company's Amendment No. 2 to
its Registration Statement on Form 10, filed July 23, 1999, File
No. 000-25939).
10.03 Form of "Effective Management Systems, Inc. Software License,
Professional Services and Support Purchase Agreement" dated as of
July 6, 1998, by and between the Company and Effective Management
Systems, Inc. (Incorporated by reference to Exhibit 10.03 to the
Company's Amendment No. 2 to its Registration Statement on Form
10, Filed July 23, 1999, File No. 000-25939).
10.05 Form of "Lease Agreement" by and between the Company and Trailer
Leasing Company. (Incorporated by reference to Exhibit 10.05 to
the Company's Amendment No. 2 to its Registration Statement on
Form 10, filed July 23, 1999, File No. 000-25939).
10.06 Form of "Ryder Truck Rental, Inc. Truck Lease and Service
Agreement" by and between the Company and Ryder Truck Rental,
Inc. with accompanying schedules (Incorporated by reference to
Exhibit 10.06 to the Company's Amendment No. 2 to its
Registration Statement on Form 10, filed July 23, 1999, File No.
000-25939) . 10.07 Schedules to Exhibits 10.04 and 10.05.
(Incorporated by reference to Exhibit 10.07 to the Company's
Amendment No. 2 to its Registration Statement on Form 10, filed
July 23, 1999, File No. 000-25939).
10.08 The Keller Manufacturing Company, Inc. Craftsman Stock Option
Plan (Incorporated by reference to Exhibit 10.08 to the Company's
Amendment No. 2 to its Registration Statement on Form 10, filed
July 23, 1999, File No. 000-25939).
10.09 The Keller Manufacturing Company, Inc. Board of Directors' Stock
Bonus Awards Plan (Incorporated by reference to Exhibit 10.09 to
the Company's Amendment No. 2 to its Registration Statement on
Form 10, filed July 23, 1999, File No. 000-25939).
10.10 The Keller Manufacturing Company, Inc. Incentive Program for
Executive Personnel (Incorporated by reference to Exhibit 10.10
to the Company's Amendment No. 2 to its Registration Statement on
Form 10, filed July 23, 1999, File No. 000-25939).
13.01 2001 Annual Report.
21.01 Subsidiaries of Company
23.01 Consent of Deloitte & Touche LLP Independent Auditors
SCHEDULE II - VALUATION AND QUALIFYING ACCOUNTS
THE KELLER MANUFACTURING COMPANY, INC.
Col. A Col. B Col. C Col. D Col. E
------ ------ ------ ------ ------
BALANCE AT CHARGED TO COLLECTION DEDUCTIONS BALANCE AT
BEGINNING COSTS & ON WRITEN OFF (BAD DEBTS END OF
DESCRIPTION PERIOD EXPENSES ACCTS. WRITE OFFS) PERIOD
----------- ------ -------- ------ ----------- ------
YEAR ENDED DECEMBER 31, 2001
Deducted from asset accts............... $221,128 $110,000 $ --- $ 43,503 $287,625
Allowance for doubtful accounts
YEAR ENDED DECEMBER 31, 2000
Deducted from asset accts............... $257,118 $199,516 $ --- $235,506 $221,128
Allowance for doubtful accounts
YEAR ENDED DECEMBER 31, 1999
Deducted from asset accts............... $291,450 $ --- $2,875 $ 37,207 $257,118
Allowance for doubtful accounts