SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 _______________ ANNUAL REPORT PURSUANT TO SECTION 13(d) OF THE SECURITIES EXCHANGE ACT OF 1934 (Mark One) ANNUAL REPORT PURSUANT TO SECTION 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 (FEE REQUIRED). For the fiscal year ended December 31, 1996 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 1-9801 A. Full title of the plan and the address of the plan, if different from that of the issuer named below: COLLINS INDUSTRIES, INC. TAX DEFERRED SAVINGS PLAN AND TRUST B. Name of issuer of the securities held pursuant to the plan and the address of its principal executive office: COLLINS INDUSTRIES, INC. 421 East 30th Avenue Hutchinson, Kansas 67502-2489 COLLINS INDUSTRIES, INC. TAX DEFERRED SAVINGS PLAN AND TRUST FINANCIAL STATEMENTS AS OF DECEMBER 31, 1996 AND 1995 TOGETHER WITH AUDITORS' REPORT REPORT OF INDEPENDENT PUBLIC ACCOUNTANTS To the Plan Administrator of the Collins Industries, Inc. Tax Deferred Savings Plan and Trust: We have audited the accompanying statements of net assets available for benefits of the Collins Industries, Inc. Tax Deferred Savings Plan and Trust as of December 31, 1996 and 1995, and the related statements of changes in net assets available for benefits for the years then ended. These financial statements and the schedules referred to below are the responsibility of the Plan's management. Our responsibility is to express an opinion on these financial statements and schedules 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 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 December 31, 1996 and 1995, and the changes in net assets available for benefits for the years then ended, in conformity with generally accepted accounting principles. Our audits were made 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 December 31, 1996, and reportable transactions for the year then ended, 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. The supplemental schedules 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. /s/Arthur Andersen LLP Arthur Andersen LLP Kansas City, Missouri, May 16, 1997 COLLINS INDUSTRIES, INC. TAX DEFERRED SAVINGS PLAN AND TRUST STATEMENTS OF NET ASSETS AVAILABLE FOR BENEFITS DECEMBER 31, 1996 AND 1995 1996 1995 ASSETS: Investments - Stock Fund - Collins Industries, Inc., common stock $2,723,920 $ 704,485 PNC Institutional Management Corporation - FedFund 18,698 3,060 Federal Fund - PNC Institutional Management Corporation - FedFund 364,272 277,053 Loan Fund - Participant loans 31,557 9,722 3,138,447 994,320 Receivables - Company contributions 8,908 35,686 Participant contributions 495 6,728 Other 479 36 Total net assets available for benefits $3,148,329 $1,036,770 The accompanying notes are an integral part of these financial statements. COLLINS INDUSTRIES, INC. TAX DEFERRED SAVINGS PLAN AND TRUST STATEMENTS OF CHANGES IN NET ASSETS AVAILABLE FOR BENEFITS DECEMBER 31, 1996 AND 1995 1996 1995 ADDITIONS: Investment income - Net appreciation (depreciation) in fair value of Collins Industries, Inc., common stock $1,953,600 $ (86,435) Interest income 19,176 13,256 1,972,776 (73,179) Contributions - Company 69,727 76,688 Participant 273,884 241,239 Total additions 2,316,387 244,748 DEDUCTIONS: Benefits paid 204,828 196,295 Total deductions 204,828 196,295 Net increase 2,111,559 48,453 NET ASSETS AVAILABLE FOR BENEFITS: Beginning of year 1,036,770 988,317 End of year $3,148,329 $1,036,770 The accompanying notes are an integral part of these financial statements. COLLINS INDUSTRIES, INC. TAX DEFERRED SAVINGS PLAN AND TRUST NOTES TO FINANCIAL STATEMENTS DECEMBER 31, 1996 AND 1995 1. PLAN DESCRIPTION: The following description of the Collins Industries, Inc. (the Company) Tax Deferred Savings Plan and Trust (the Plan) provides only general information. Participants should refer to the plan agreement for a more complete description of the Plan's provisions. General The Plan is a defined contribution plan. All employees of the Company, except for corporate and subsidiary officers, directors, subsidiary presidents and general managers, are eligible to join the Plan following one year of employment, during which at least 1,000 hours are worked, and attainment of age 21. The Plan is subject to the provisions of the Employee Retirement Income Security Act of 1974 (ERISA), as amended. The plan trustee is The Bank of Kansas. Participant Accounts Each participant's account is credited with the participant's contributions and allocation of company contributions and earnings. Earnings and losses on plan assets are allocated based on the proportion of the participant's account balance to the total of all participant account balances. The benefit to which a participant is entitled is the benefit that can be provided from the participant's accounts. Contributions and Withdrawals Participants may elect to contribute a percentage of their compensation on a tax-deferred basis subject to certain Internal Revenue Code limits. The Company makes matching contributions equal to 50 percent of each eligible participant's tax-deferred contributions to the extent those tax-deferred contributions do not exceed 6 percent of the participant's total compensation. Additional amounts may be contributed at the discretion of the Company's board of directors. Participants may receive loans from their account prior to retirement, termination, death or disability, and may apply for full receipt of their account balance in the case of financial hardship. Upon retirement, termination, death or disability, participants receive lump-sum distributions. Participants may elect distribution in cash or in company common stock. Benefits Vesting Participants immediately vest in their voluntary contributions and earnings thereon. Participants vest 100 percent in the remainder of their accounts after five years of service, as defined. Forfeitures reduce future employer contributions. Plan Termination Although it has not expressed any intent to do so, the Company may discontinue its contributions at any time and terminate the Plan subject to the provisions of ERISA. In the event of plan termination, participants become 100 percent vested in their accounts. 2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES: Method of Accounting The financial statements have been prepared using the accrual basis of accounting in accordance with generally accepted accounting principles. The preparation of the financial statements requires management to make estimates and assumptions. Actual results could differ from those estimates. Investments Two separate funds are maintained for investment purposes: the Federal Fund, consisting entirely of a money market fund invested primarily in U.S. treasury bills, notes and other obligations of the U.S. government; and the Stock Fund, consisting primarily of the registered and unregistered common stock of the Company. Employees may choose to allocate contributions among the two funds. During 1996 and 1995, the Company made its matching contributions in unregistered Company common stock. The quarterly contributions were valued using the average market price per registered share during the period. The unregistered shares have the same voting and dividend rights as registered shares. In 1996 the Company also made matching contributions of $21,650 in cash. Administrative Costs The Plan pays brokerage fees. The Company pays all other administrative and professional fees related to the Plan. Other Certain 1995 amounts have been reclassified to conform with the 1996 presentation. 3. INVESTMENTS: At December 31, 1996 and 1995, the Plan held 463,646 shares and 433,529 shares, respectively, of Company common stock, with a cost of $1,485,133 and $1,396,835, respectively, of which 196,779 and 184,818 shares, respectively, were unregistered. The unregistered and registered shares were valued by the Trustee at the December 31, 1996 and 1995, market price per registered share of $5.875 and $1.625 per share, respectively. Money market funds are stated at cost which approximates market. Investments representing 5 percent or more of the Plan's net assets are separately identified on the statements of net assets available for benefits. As of May 16, 1997, the Company common stock had a market price of $4.75 per share. 4. TAX STATUS: The Plan obtained its latest determination letter dated December 29, 1993, in which the IRS stated the Plan, as then designed, was in compliance with the applicable requirements of the Internal Revenue Code. The Plan has been amended since receiving the determination letter. The plan administrator believes the Plan is currently designed and being operated in compliance with the applicable requirements of the Internal Revenue Code and, therefore, no provision for income taxes is reflected in the financial statements. 5. RECONCILIATION TO FORM 5500: As of December 31, 1996, the Plan had approximately $334,000 of pending distributions to participants who elected to withdraw from the Plan. The amounts are recorded as a liability in the Plan's Form 5500; however, these amounts are not recorded as a liability in the accompanying statements of net assets available for benefits in accordance with generally accepted accounting principles. There were no pending distributions at December 31, 1995. The following table reconciles net assets available for benefits per the financial statements to the Form 5500 as filed by the Company for the year ended December 31, 1996: Net Assets Benefits Available for Payable to Benefits Plan Benefits Participants Paid 1996 Per financial statements $ 0 $204,828 $3,148,329 1996 amounts pending to distribute to participants 334,000 334,000 (334,000) Per Form 5500 $ 334,000 $538,828 $2,814,329 FUND INFORMATION: The following tables present the changes in net assets available for benefits by fund. Year Ended December 31, 1996 Federal Stock Fund Fund Other Total ADDITIONS: Investment income - Net appreciation (depreciation) in fair value of Collins Industries, Inc., common stock $ 0 $1,953,600 $ 0 $1,953,600 Interest income 16,982 0 2,194 19,176 16,982 1,953,600 2,194 1,972,776 Contributions - Company 0 60,819 8,908 69,727 Participant 100,946 167,003 5,935 273,884 Total additions 117,928 2,181,422 17,037 2,316,387 TRANSFERS (1,570) 29,340 (27,770) 0 DEDUCTIONS: Benefits paid 29,139 175,689 0 204,828 Total deductions 29,139 175,689 0 204,828 Net increase (decrease) 87,219 2,035,073 (10,733) 2,111,559 NET ASSETS AVAILABLE FOR BENEFITS: Beginning of year 277,053 707,545 52,172 1,036,770 End of year $ 364,272 $2,742,618 $ 41,439 $3,148,329 FUND INFORMATION: - Con't. Year Ended December 31, 1995 Federal Stock Fund Fund Other Total ADDITIONS: Investment income - Net appreciation (depreciation) in fair value of Collins Industries, Inc., common stock $ 0 $ (86,435) $ 0 $ (86,435) Interest income 13,256 0 0 13,256 13,256 (86,435) 0 (73,179) Contributions - Company 0 41,002 35,686 76,688 Participant 80,328 154,183 6,728 241,239 Total additions 93,584 108,750 42,414 244,748 TRANSFERS (5,917) 57,018 (51,101) 0 DEDUCTIONS: Benefits paid 32,546 161,826 1,923 196,295 Total deductions 32,546 161,826 1,923 196,295 Net increase (decrease) 55,121 3,942 (10,610) 48,453 NET ASSETS AVAILABLE FOR BENEFITS: Beginning of year 221,932 703,603 62,782 988,317 End of year $ 277,053 $707,545 $ 52,172 $1,036,770 COLLINS INDUSTRIES, INC. TAX DEFERRED SAVINGS PLAN AND TRUST LINE 27A--SCHEDULE OF ASSETS HELD FOR INVESTMENT PURPOSES DECEMBER 31, 1996 Current Description Shares Cost Value * Collins Industries, Inc. common stock **463,646 $1,485,133 $2,723,920 Provident Institutional Management Corporation - FedFund 382,969 382,969 382,969 * Participant loans at rates ranging from 9.75% to 11.0% 0 31,557 31,557 * Represents investments with a party-in-interest to the Plan. ** Includes 196,779 unregistered shares. COLLINS INDUSTRIES, INC. TAX DEFERRED SAVINGS PLAN AND TRUST LINE 27D--SCHEDULE OF REPORTABLE TRANSACTIONS FOR THE YEAR ENDED DECEMBER 31, 1996 Purchases Sales No. No. of of Sales Net Identity of Issue Trans. Cost Trans. Proceeds Gain * Collins Industries, Inc., common stock 9 $50,956 8 $74,000 $24,103 Provident Institutional Management Corporation - Not available from the custodian or FedFund recordkeeper. * During the year ended December 31, 1996, Collins Industries, Inc., a part-in-interest to the Plan, also contributed 31,723 shares of unregistered common stock to the Plan valued at $74,855, which included shares contributed in satisfaction of the December 31, 1995, contribution receivable. SIGNATURE Pursuant to the requirement of the Securities Exchange Commission Act of 1934, the trustee (or other persons who administer the employee benefit plan) have duly caused this annual report to be signed on its behalf by the undersigned thereunto duly authorized. Collins Industries, Inc. Tax Deferred Savings Plan and Trust DATE: June 20, 1997 /s/ Larry W. Sayre Larry W. Sayre Vice President - Finance & Chief Financial Officer (Principal Accounting Officer) CONSENT OF INDEPENDENT PUBLIC ACCOUNTANTS As independent public accountants, we hereby consent to the use of our report included in or made part of this Form 11-K of Collins Industries, Inc. Tax Deferred Savings Plan and Trust. Kansas City, Missouri, June 20, 1997