SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
_________________
ANNUAL REPORT
PURSUANT TO SECTION 13(d) OF THE
SECURITIES EXCHANGE ACT OF 1934
(MARK ONE)
X ANNUAL REPORT PURSUANT TO SECTION 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934 (FEE REQUIRED)
For the fiscal year ended December 31, 1998
OR
TRANSITION REPORT PURSUANT TO SECTION 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934 (NO FEE REUQIRED)
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.
15 Compound Drive
Hutchinson, Kansas 67502-4349
COLLINS INDUSTRIES, INC.
TAX DEFERRED SAVINGS PLAN AND TRUST
FINANCIAL STATEMENTS AND SCHEDULES
DECEMBER 31, 1998 AND 1997
COLLINS INDUSTRIES, INC.
TAX DEFERRED SAVINGS PLAN AND TRUST
DECEMBER 31, 1998 AND 1997
TABLE OF CONTENTS
Page
Report of Independent Accountants 1
Financial Statements
Statements of Net Assets Available for Plan Benefits
As of December 31, 1998, and 1997 2
Statements of Changes in Net Assets Available for Plan
Benefits for the Years Ended December 31, 1998, and
1997 3
Notes to Financial Statements 4-8
Supplemental Information
Item 27a - Schedule of Assets Held for Investment
Purposes as of December 31, 1998 10
Item 27d - Schedule of Reportable Transactions for
the Year Ended December 31, 1998 11
Report of Independent Accountants
To the Participants and Administrator of
Collins Industries, Inc.
Tax Deferred Savings Plan and Trust
We have audited the accompanying statement of net assets
available for benefits of Collins Industries, Inc. Tax
Deferred Savings Plan and Trust (the Plan) as of December
31, 1998, and the related statement of changes in net assets
available for benefits for the year ended December 31, 1998.
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 based on our audits. The financial statements of
Collins Industries, Inc. Tax Deferred Savings Plan and Trust
as of December 31, 1997, were audited by other auditors
whose report dated June 15, 1998, expressed an unqualified
opinion on those statements.
We conducted our audits in accordance with generally accepted
auditing standards. Those standards require that we plan
and perform audits to obtain reasonable assurance about
whether the financial statements are free of material
misstatement. An audit includes examining, on a test basis,
evidence supporting the amounts and disclosures in the
financial statements. An audit also includes assessing the
accounting principles used and significant estimates made by
management, as well as evaluating the overall financial
statement presentation. We believe that our audits provide
a reasonable basis for our opinion.
In our opinion, the financial statements referred to above
present fairly, in all material respects, the net assets
available for benefits of the Plan as of December 31, 1998,
and the changes in net assets available for benefits for the
year ended December 31, 1998, in conformity with generally
accepted accounting principles.
Our audits were performed for the purpose of forming an opinion
on the basic financial statements as a whole. The
supplemental schedules of Collins Industries, Inc. Tax
Deferred Savings Plan and Trust are presented for the
purpose of additional analysis and are not a required part
of the basic financial statements but are supplementary
information required by the Department of Labor's Rules and
Regulations for Reporting and Disclosure under the Employee
Retirement Income Security Act of 1974. These supplemental
schedules are the responsibility of the Plan's management.
The 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/Meara, King & Co.
Meara, King & Co.
June 28, 1999
Kansas City, MO
Financial Statements
COLLINS INDUSTRIES, INC.
TAX DEFERRED SAVINGS PLAN AND TRUST
STATEMENTS OF NET ASSETS AVAILABLE FOR PLAN BENEFITS
DECEMBER 31, 1998 AND 1997
1998 1997
ASSETS:
Investments:
Stock Fund
Collins Industries, Inc. common stock $1,789,586 $2,883,359
PNC Institutional Management
Corporation - FedFund 42,332 137,313
Federal Fund
PNC Institutional Management
Corporation - FedFund 538,409 433,316
Loan Fund
Participant loans 87,499 62,085
Receivables:
Company contributions 27,410 1,521
Participant contributions 31,856 16,964
Net assets available for plan benefits $2,517,092 $3,534,558
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 PLAN BENEFITS
FOR THE YEARS ENDED DECEMBER 31, 1998 AND 1997
1998 1997
Additions to net assets:
Investment income:
Net appreciation (depreciation) in fair
value of Collins Industries, Inc.
common stock ($1,225,370) $ 459,032
Dividend income 94,178 41,516
Interest income 36,150 24,032
Contributions:
Company 101,753 70,457
Participant 364,046 336,688
Total additions (629,243) 931,725
Reductions to net assets:
Benefits paid during the year 388,223 545,496
Total reductions 388,223 545,496
Net increase (1,017,466) 386,229
Net assets available for plan benefits:
Beginning of year 3,534,558 3,148,329
End of year $2,517,092 $3,534,558
The accompanying notes are an integral part of these financial statements.
COLLINS INDUSTRIES, INC.
TAX DEFERRED SAVINGS PLAN AND TRUST
NOTES TO FINANCIAL STATEMENTS
NOTE 1: DESCRIPTION OF THE PLAN
The following brief description of the Collins Industries, Inc.
(the Company) Tax Deferred Savings Plan and Trust (the Plan) is
provided for general information purposes only. 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.
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, in the Plan document.
Forfeitures reduce future employer contributions. Forfeitures
were $10,976 and $24,400 for the years ended December 31, 1998
and 1997, respectively.
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.
NOTE 2: SUMMARY OF ACCOUNTING POLICIES
The financial statements have been prepared using the accrual
basis of accounting in accordance with generally accepted
accounting principles.
Accounting estimates
The preparation of financial statements in conformity with
generally accepted accounting principles requires management to
make estimates and assumptions that affect the reported amounts
of assets and liabilities and disclosure of contingent assets and
liabilities at the date of the financial statements and the
reported amounts of revenues and expenses during the reporting
period. Actual results could differ from those estimates.
Investments
Two separate funds are maintained for investment purposes:
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.
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 1998 and 1997, the Company made matching contributions of
$112,729 and $94,858, respectively.
Administrative Costs
The Plan pays brokerage fees. The Company pays all other
administrative and professional fees related to the Plan. The
amount paid by the Company for the 1998 plan year was $41,260.
NOTE 3: INVESTMENTS
At December 31, 1998 and 1997, the Plan held 433,839 shares and
404,682 shares, respectively, of Company common stock, with a
cost of $1,338,557 and $1,392,631, respectively. Of these shares
217,399 shares were unregistered at December 31, 1998 and 1997.
The unregistered and registered shares were valued by the trustee
at the December 31, 1998 and 1997, market price per registered
share of $4.13 and $7.125 per share, respectively. Money market
funds are stated at cost, which approximates market value.
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 June 25, 1999, the Company common stock had a closing
market price of $5.625 per share.
NOTE 4: TAX STATUS
The Plan obtained its latest determination letter dated December
29, 1993, in which the Internal Revenue Service states 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.
NOTE 5: SCHEDULE OF INVESTMENT ACTIVITY
Contributions to the Plan are allocated among two funds for
investment purposes, at the participants' election. The balances
in these accounts and the activity for 1998 are shown below:
Year Ended December 31, 1998
Federal Stock
Fund Fund Other Total
ADDITIONS:
Investment income:
Net appreciation in
fair value of Collins
Industries, Inc.
common stock $ - $(1,225,370) $ $(1,225,370)
Dividend income - 94,178 - 94,178
Interest income 28,692 - 7,458 36,150
28,692 (1,131,192) 7,458 (1,095,042)
Contributions:
Company - 75,863 25,890 101,753
Participant 129,311 219,843 14,892 364,046
Total additions 158,003 (835,486) 48,240 (629,243)
TRANSFERS (5,131) (12,824) 17,955 -
DEDUCTIONS:
Benefits paid 47,779 340,444 - 388,223
Total deductions 47,779 340,444 - 388,223
Net increase (decrease) 105,093 (1,188,754) 66,195 (1,017,466)
NET ASSETS AVAILABLE
FOR BENEFITS:
Beginning of year 433,316 3,020,672 80,570 3,534,558
End of year $538,409 $1,831,918 $146,765 $2,517,092
NOTE 5: SCHEDULE OF INVESTMENT ACTIVITY (continued)
Year Ended December 31, 1997
Federal Stock
Fund Fund Other Total
ADDITIONS:
Investment income:
Net appreciation in
fair value of Collins
Industries, Inc.
common stock $ - $ 459,032 $ - $ 459,032
Dividend income - 41,516 - 41,516
Interest income 19,853 - 4,179 24,032
19,853 500,548 4,179 524,580
Contributions:
Company - 70,457 - 70,457
Participant 115,311 200,958 20,419 336,688
Total additions 135,164 771,963 24,598 931,725
TRANSFERS: (1,371) (19,120) 20,491 -
DEDUCTIONS:
Benefits paid 64,749 474,789 5,958 545,496
Total deductions 64,749 474,789 5,958 545,496
Net increase (decrease) 69,044 278,054 39,131 386,229
NET ASSETS AVAILABLE
FOR BENEFITS:
Beginning of year 364,272 2,742,618 41,439 3,148,329
End of year 433,316 3,020,672 80,570 3,534,558
Supplemental Information
COLLINS INDUSTRIES, INC.
TAX DEFERRED SAVINGS PLAN AND TRUST
ITEM 27A - SCHEDULE OF ASSETS HELD FOR INVESTMENT PURPOSES
Description of
investment
including maturity
Identity of issuer, date, rate of
borrower, lessor interest, collateral, Current
or similar party par or maturity value Shares Cost Value
* Collins Collins Industries,
Industries, Inc Inc. common stock ** 433,839 $1,338,557 $1,789,586
PNC Institutional PNC Institution
Management Management
Corporation Corporation-FedFund 580,741 580,741 580,741
* Participant Participant loans at
loans rates ranging from
9.75% to 10.5% - 87,499 87,499
Total $2,006,797 $2,457,826
* Represents investments with a party-in-interest.
** Includes 217,399 unregistered shares.
COLLINS INDUSTRIES, INC.
TAX DEFERRED SAVINGS PLAN AND TRUST
ITEM 27D - SCHEDULE OF REPORTABLE TRANSACTIONS
FOR THE YEAR ENDED DECEMBER 31, 1998
Current
value of
Identity Number asset on
of party of Purchase Sales Cost of trans.on Net gain
involved trans. Price Price Asset date (loss)
Collins
Industries,
Inc.
common stock 43 $383,108 $383,108 $383,108 $0
Collins
Industries,
Inc.
common stock 6 $253,973 $253,973
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.
DATE: June 28, 1999 /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
incorporation of our report included in the Form 11-K of
Collins Industries, Inc. Tax Deferred Savings Plan and Trust
into the Company's previously filed Registration Statements
filed on Form S-8 (Nos. 333-24647 and 333-24651).
June 28, 1999
Kansas City, MO