Katy Industries, Inc. (fka KATYQ)

[Renee]

KATYQ: Bankruptcy PLAN effective. All shares cancelled.

https://otce.finra.org/otce/dailyList?viewType=Deletions

[m0n]

KATYQ BID ASK moved higher

[m0n]

$KATYQ .031 bid 05 up

[m0n]

KATYQ miso hornAy EOM

[DJPennyTrader]

Like this one°•???

[m0n]

$KATYQ next stop plan of reOrganization which takes 120days from petition filing (may 14th).

SEC filing 13d proves commons are held and have been bought on 8/2/2017

Weeeee

[m0n]

KATYQ some volume

[m0n]

Vegas_Whoa $KATY

[etcetera]

I agree, do u have a twitter handle bro?

[m0n]

No way a billionaire investor buys commons in June 2017 for his fund if commons won't survive IMO

SEC filing says it all

$KATYQ

[m0n]

KATYQ DD 7.9milly OS and commons owned by new ownership!

Item 5

http://www.otcmarkets.com/edgar/GetFilingHtml?FilingID=12219223

http://docs.wixstatic.com/ugd/8a1007_59cd37075aea426e860506fdcab65a05.pdf

https://www.jndla.com/cases/katy

[etcetera]

Your question needs an answer before mkt opens tomm

[m0n]

Are you still following this? Do you think commons will remain in tact out of BK?

Looks like new peeps own commons per SEC filing a few days ago

KATYQ

[Enterprising Investor]

Katy Industries files for bankruptcy, plans asset sale (5/15/17)

Katy Industries Inc. has filed for bankruptcy and plans to sell the majority its assets to a newly created investment vehicle co-owned by Highview Capital LLC and Victory Park Capital Advisors.

Maryland Heights-based Katy, which manufactures and distributes commercial cleaning and storage products, announced Sunday night that it had entered into an agreement to sell "substantially all" of its assets to the Highview/Victory entity for a combined cash and credit offer. The company said that to facilitate the sale, it and certain of its subsidiaries had filed for Chapter 11 reorganization in Delaware bankruptcy court.

Chicago-based Victory Park in September bought all of Katy Industries' holding company's stock in a $6.5 million deal. The holding company had held 1.13 million shares of Katy's stock, with 7.9 million shares outstanding.

Katy Industries said that the new agreement with Highview Capital and Victory Park would provide long-term financial stability and provide the company with the resources needed to sustain its operations.

Katy will be filing a motion to allow other companies to bid for the assets being sold. The company expects the court-supervised sale process to be completed within 60 to 90 days. In court papers, Katy listed assets of $821,321 and debts of $58.4 million. Local creditors include Koller Craft Plastics, with an unsecured claim of $202,639.

"Our goal is to put the Company on the proper financial footing, de-lever our balance sheet and use the influx of new funding to recover the business and position our operations for future growth while, at the same time, providing a mechanism to address the liquidity constraints and legacy liabilities that have impacted our ability to operate efficiently and effectively," Robert Guerra, president and CEO, said in a statement. "By utilizing the Chapter 11 process, we are able to ensure an expedited and orderly sale transaction."

Katy has received a commitment for up to $7.5 million in debtor-in-possession financing from the Highview/Victory Park entity, which, if approved by the court, would be used to maintain operations during the sale process.

Six of eight of Katy's board members resigned last fall after Victory Park acquired the holding company's stock. In October, Katy fired its former CEO, David Feldman, who had led the company since 2008. Feldman later filed suit, alleging that he was not fired for cause, as Katy had stated.

Katy Industries manufactures, imports and distributes commercial cleaning and consumer storage products, which it markets under the Continental, Contico, Wilen, Fort Wayne Plastics and Commander brands.The company said it employed 301 people as of Dec. 31, 2015. It operates injection molding and manufacturing facilities in Jefferson City; Hazelwood; Fort Wayne, Indiana; and Tiffin, Ohio; with distribution centers in Berkeley, Missouri, and Toronto.

For the quarter ended Sept. 30, the company reported sales of nearly $24 million, down more than 22 percent from the prior-year quarter. Katy’s loss widened that quarter to $5.4 million, compared with $1.6 million in the same quarter of 2015.

Lawrence Perkins is the chief restructuring officer for Katy, located at 11840 Westline Industrial Drive.

http://www.bizjournals.com/stlouis/news/2017/05/15/katy-industries-files-for-bankruptcy-plans-asset.html

[Enterprising Investor]

David Feldman now out as CEO (10/19/16)

Feldman was placed on administrative leave on 9/19/16 pending an internal review of the Company’s and Mr. Feldman’s performance, conducted by an independent committee of the Company’s Board of Directors.  On 10/31/16, the Board of Directors voted to terminate Mr. Feldman’s employment for cause, in accordance with the terms of his employment agreement, effective immediately.
 
The Company has initiated an executive search to locate and vet potential candidates to fill the position of Chief Executive Officer.  In the interim, Lawrence Perkins, the Company’s Chief Restructuring Officer, and Curt Kroll, the Company’s Chief Financial Officer, will perform the functions of the principal executive officer of the Company.
 
Mr. Perkins, age 39, has served as the Company’s Chief Restructuring Officer since 8/11/16.  He is the CEO and founder of SierraConstellation Partners LLC (“SCP”), an interim management and advisory firm that provides services to companies navigating business challenges. Prior to founding SCP in 2013, Mr. Perkins was a senior managing director and regional leader of Conway MacKenzie, Inc., a national consulting firm, where he was responsible for business development, marketing, staffing, and general management of the firm’s western region. The Company previously engaged SCP to make Mr. Perkins available to serve as CRO and to otherwise advise the Company with respect to, among other things, cash management processes, the development of cost reduction opportunities, vendor relationships and development of strategic plans for the Company’s business.
 
Mr. Kroll, age 37, has served as the Company’s Chief Financial Officer, Treasurer and Secretary since January 2015 and served as a Vice President, Corporate Controller and Assistant Treasurer of the Company and Continental Commercial Products, LLC, a wholly-owned subsidiary of the Company, from March 2012 until January 2015.  Prior to joining the Company, Mr. Kroll was an Audit Manager at Deloitte, a national accounting firm.

https://www.sec.gov/Archives/edgar/data/54681/000119380516004149/e615508_8k-katy.htm

[Enterprising Investor]

Not toast, but going down... way down.

[Huckleberry Pieman]

With the new change is Katy pretty much toast?

[Enterprising Investor]

Resignation of Directors (8/11/16)

Pursuant to the terms of the Stock Purchase Agreement, each of Christopher W. Anderson, Daniel B. Carroll, Pamela Carroll Crigler, Samuel P. Frieder, Shant Mardirossian and Richard A. Mark (the “Resigning Directors”) tendered their respective resignations as directors from the Board of Directors (the “Board”) and from all committees of the Board on which such directors served, effective as of August 11, 2016. The Resigning Directors constituted all of the directors of the Company other than David Feldman, who will remain in office.

[Enterprising Investor]

Fourth Amendment to the Second Lien Credit Agreement (8/11/16)

The Company, Continental Commercial Products, LLC, FTW Holdings, Inc. and Fort Wayne Plastics, Inc. (the “SL Borrowers”), Victory Park Management, LLC, as Agent (the “SL Agent” or “Victory Park”) and the lenders party thereto, entered into the Fourth Amendment to the Second Lien Credit and Security Agreement (the “Fourth Amendment”), to amend that certain Second Lien Credit and Security Agreement, dated as of April 7, 2015, among the SL Borrowers, the SL Agent and the lenders party thereto (as previously amended, the “Second Lien Credit Agreement,” and as amended by the Fourth Amendment, the “Amended Second Lien Credit Agreement”).

Pursuant to the Fourth Amendment, the lenders agreed to a further extension of credit in the amount of $5,750,000. The Fourth Amendment additionally amends the Second Lien Credit Agreement to grant the SL Agent the option to convert, in whole or in part, the outstanding principal amount of existing term loan plus accrued and unpaid interest under the loan being converted, into such number of shares of the Company’s common stock equal to such amount of outstanding principal amount and accrued but unpaid interest divided by approximately $0.0697 per share (as such amount is proportionately adjusted for stock splits, reverse stock splits, stock combinations, stock dividends and other distributions and recapitalizations affecting the capital stock of the Company). As of August 11, 2016, the existing term loan would be convertible into up to 370,748,441 shares of the Company’s common stock.

[Enterprising Investor]

First Lien Credit Facility (8/11/16)

Katy Industries, Inc. (the “Company”), Continental Commercial Products, LLC, a Delaware limited liability company, 2155735 Ontario Inc., an Ontario corporation, CCP Canada Inc., an Ontario corporation, FTW Holdings, Inc., a Delaware corporation, Fort Wayne Plastics, Inc., an Indiana corporation (each of the foregoing, individually, a “Borrower” and collectively, the “Borrowers”), and BMO Harris Bank N.A., as lender (the “Lender”), entered into Amendment No. 4 and Forbearance Agreement (the “Forbearance Agreement”) amending that certain Credit and Security Agreement dated as of February 19, 2014, by and among Lender and Borrowers (as amended, the “Original Credit Agreement” and as further amended by the Forbearance Agreement, the “Credit Agreement”).

Pursuant to the Forbearance Agreement, the Lender agreed, among other things, to forbear from exercising its rights and remedies under the Original Credit Agreement in respect of existing defaults and certain other anticipated defaults for a period of up to six months (the “forbearance period”). The Lender may terminate the forbearance period (i) if the Victory Park lender assigns or participates any portion of the term notes or Second Lien Credit Agreement, (ii) upon a bankruptcy filing or commencement of another insolvency proceeding by or against any Borrower or guarantor or (iii) the occurrence of any additional event of default under the Credit Agreement.

[Enterprising Investor]

Change of Control (8/11/16)

Stock Purchase Agreement

The Company, KKTY Holding Company, L.L.C., Kohlberg & Company, L.L.C., certain funds affiliated with the Kohlberg Manager and VPC SBIC I, LP,. Under the Stock Purchase Agreement, KKTY Holding agreed to sell all of its 1,131,551 shares of convertible preferred stock, which represents all of the Company’s outstanding preferred stock in exchange for entry into the Release. The closing of the transactions contemplated by the Stock Purchase Agreement took place concurrently with the execution of the Stock Purchase Agreement.

Upon conversion of the Preferred Stock, 18,859,183 shares of the Company’s common stock (which represents approximately 70.3% of the Company’s outstanding common stock as of August 11, 2016) are issuable to Buyer.

The Stock Purchase Agreement also provides for the termination of the Management Agreement, dated as of June 28, 2001, as amended, by and among the Company and the Kohlberg Manager, together with any other similar advisory agreements between any of KKTY Holding, the Kohlberg Manager, the Kohlberg Funds and the Company.

As soon as practicable following the closing with respect to the Stock Purchase Agreement, the Company has agreed to file an information statement pursuant to Section 14(f) of, and Rule 14f-1 under, the Securities and Exchange Act of 1934, relating to the change in the majority of its board of directors to directors designated by Victory Park and nominated and appointed by the current directors of the Board. We anticipate that, effective 10 days following the mailing of such information statement to our stockholders two individuals selected by Victory Park will be appointed to serve as directors of the Company.

The Company has also agreed, in connection with any annual or special meeting of its stockholders at which directors are to be elected, to take all reasonably necessary action within its control and use its reasonable best efforts to cause an individual designated by the Buyer to be nominated for election (or re-election, as the case may be) to the Board, to recommend that such individual be elected to the Board, and to solicit proxies on behalf of such director nominee.

https://www.sec.gov/Archives/edgar/data/54681/000114036116076977/form8k.htm

[Enterprising Investor]

Katy Industries, Inc. Reports 2015 Second Quarter Results (8/10/15)

- Net Sales Increased 22% over Prior Year Second Quarter

- Completed Acquisition of Ohio Manufacturing Facility

- Amended Credit Agreement with BMO Harris Bank N.A.

- Entered into Second Lien Credit Agreement with Victory Park Management, LLC

- Richard Mark Appointed as Chairman of the Board of Directors

BRIDGETON, MO – August 10, 2015 – Katy Industries, Inc. (OTC BB: KATY), a leading manufacturer, importer and distributor of commercial cleaning and consumer storage products, as well as a contract manufacturer of structural foam products, today reported financial results for the second quarter ended June 26, 2015.

“We were pleased to announce the acquisition of an Ohio manufacturing facility which brings a breadth of shelving and storage cabinet solutions to the Katy consumer storage product line,” said David J. Feldman, Katy Chief Executive Officer. “As a result of the acquisition we amended our credit agreement with BMO Harris Bank N.A. and entered into a second lien credit agreement with Victory Park Management, LLC. In addition, we continued the relocation of our Bridgeton Facility to Jefferson City. We anticipate the acquisition of the Ohio manufacturing facility and the relocation of our primary manufacturing location will drive significant improvement in both sales and profitability for future years.”

Mr. Feldman continued, “We achieved significant gains in operating income, excluding one-time costs associated with the aforementioned acquisition and relocation costs, with our ongoing strategic initiatives to improve gross margins.”

Second Quarter Financial Results

Financial highlights for the second quarter of 2015, as compared to the same period in the prior year, included:

· Net sales in the second quarter of 2015 were $31.3 million, an increase of $5.7 million, or 22.4%, compared to the same period in 2014. The increase was a result of increased demand in our Continental business unit and the acquisition of the Tiffin, Ohio manufacturing facility during the quarter in 2015 as compared to the three months ended June 27, 2014.

· Selling, general and administrative expenses were $1.1 million higher in the second quarter of 2015 than in the second quarter of 2014. The increase was primarily due to acquisition costs related to the Tiffin, Ohio manufacturing facility.

· Severance, restructuring and related charges were $0.5 million for the three months ended June 26, 2015 for costs associated with the relocation of our Bridgeton, Missouri manufacturing facility to Jefferson City, Missouri.

· Operating income was $0.3 million, or 1.2% of net sales, in the second quarter of 2015, compared to $0.8 million, or 3.1% of net sales, for the same period in 2014. With the exclusion of one-time items related to our facility relocation and acquisition of the Tiffin, Ohio manufacturing facility, operating income was $1.9 million for the three months ended June 26, 2015 versus operating income of $0.8 million for the three months ended June 27, 2014.

· Interest expense increased by $1.0 million during the second quarter as a result of the increased borrowings under the First and Second Lien Credit Agreements during the period.

· Net loss in the second quarter of 2015 was $1.0 million, or $0.12 per basic and diluted share, versus net income of $0.5 million, or $0.07 per basic ($0.02 per diluted) share, in the second quarter of 2014. With the exclusion of one-time items related to our facility relocation and acquisition of the Tiffin, Ohio manufacturing facility, net income was $0.6 million for the three months ended June 26, 2015 versus net income of $0.5 million for the three months ended June 27, 2014.

Year-to-Date Second Quarter Financial Results

Financial highlights for the six months ended June 26, 2015, as compared to the six months ended June 27, 2014, included:

· Net sales for the six months ended June 26, 2015 were $52.7 million, an increase of $7.1 million, or 15.6%, compared to the same period in 2014. The increase was a result of the acquisition of the Tiffin, Ohio manufacturing facility, which contributed $4.9 million in net sales for the six months ended June 26, 2015, and increased demand in our Continental business unit.

· Selling, general and administrative expenses were $7.6 million for the first half of 2015 as compared to $7.2 million for the first half of 2014. The increase was primarily due to one-time acquisition costs for the Tiffin, Ohio manufacturing facility for the six months ended June 26, 2015, partially offset by one-time acquisition costs for Ft. Wayne Holdings Inc. (“FTW”) in the prior year.

· Severance, restructuring and related charges of $2.1 million for the six months ended June 26, 2015, were for the relocation of our Bridgeton, Missouri facility to Jefferson City, Missouri.

· Operating loss was $1.4 million, or 2.6% of net sales during the six months ended June 26, 2015, compared to an operating loss of $0.1 million, or 0.3% of net sales, for the same period in 2014. With the exclusion of one-time items related to our facility relocation and acquisition of the Tiffin, Ohio manufacturing facility, operating income was $1.3 million for the six months ended June 26, 2015 versus an operating loss of $0.1 million for the three months ended June 27, 2014.

· Interest expense increased by $0.9 million during the six months ended June 26, 2015 as compared to the six months ended June 27, 2014 as a result of the increased borrowings under the First and Second Lien Credit Agreements during the period.

· The income tax benefit for the six months ended June 27, 2014 includes a benefit as a result of the acquisition of FTW. The Company recorded deferred tax liabilities of $2.4 million which reduced its net deferred tax assets. The reduction in deferred tax assets caused a release of a valuation allowance of $2.3 million.

· The Company reported a net loss for the six months ended June 26, 2015 of $2.8 million, or $0.35 per basic and diluted share, versus net income of $1.7 million, or $0.21 per basic share ($0.06 per diluted share), for the six months ended June 27, 2014. With the exclusion of one-time items related to our facility relocation and acquisition costs included in selling, general, and administrative expenses in 2015 and the one-time tax benefit and acquisition costs in 2014, net income was $0.6 million for the six months ended June 26, 2015 versus a net loss of $0.6 million for the six months ended June 27, 2014.

Liquidity and Capital Resources

Cash used by operating activities before changes in operating assets and liabilities was $0.7 million in the first half of 2015 as compared to cash provided of $0.8 million in the same period of 2014. Changes in operating assets and liabilities from continuing operations provided $1.7 million in the first half of 2015 as compared to using $4.0 million in the same period of 2014. The increase is primarily attributable to increased accounts payable, partially offset by an increase in inventories and accounts receivable.

Cash flows used in investing activities of $25.3 million in the first half of 2015 were primarily for the acquisition of the Tiffin, Ohio manufacturing facility.

Debt at June 26, 2015 was $49.7 million, versus $22.0 million at December 31, 2014. On April 7, 2015, in conjunction with the acquisition of the Tiffin, Ohio manufacturing facility, the Company amended the BMO Credit Agreement resulting in an increase of $6.0 million to the revolving credit facility and entered into a Second Lien Credit and Security Agreement with Victory Park Management, LLC which provided the company with a $24.0 million term loan.

Non-GAAP Financial Measures

This press release may contain forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities and Exchange Act of 1934, as amended. Forward-looking statements include all statements of the Company’s plans, beliefs or expectations with respect to future events or developments and often may be identified by such words or phrases as “anticipates,” “believes,” “estimates,” “expects,” “intends,” “plans,” “projects,” “may,” “should,” “will,” “continue,” “is subject to,” or similar expressions. These forward-looking statements are based on the opinions and beliefs of Katy’s management, as well as assumptions made by, and information currently available to, the Company’s management. Additionally, the forward-looking statements are based on Katy’s current expectations and projections about future events and trends affecting the financial condition of its business. The forward-looking statements are subject to risks and uncertainties that may lead to results that differ materially from those expressed in any forward-looking statement made by the Company or on its behalf. These risks and uncertainties include, without limitation, conditions in the general economy and in the markets served by the Company, including changes in the demand for its products; success of any restructuring or cost control efforts; an increase in interest rates; competitive factors, such as price pressures and the potential emergence of rival technologies; interruptions of suppliers’ operations or other causes affecting availability of component materials or finished goods at reasonable prices; changes in product mix, costs and yields; labor issues at the Company’s facilities or those of its suppliers; legal claims or other regulatory actions; and other risks identified from time to time in the Company’s filings with the SEC, including its Report on Form 10-K for the year ended December 31, 2014. Katy undertakes no obligation to revise or update such statements to reflect current events or circumstances after the date hereof or to reflect the occurrence of unanticipated events.

Katy Industries, Inc. is a diversified corporation focused on the manufacture, import and distribution of commercial cleaning products, consumer home products and a contract manufacturer of structural foam products.

http://www.marketwatch.com/story/katy-industries-inc-reports-2015-second-quarter-results-2015-08-10

[Enterprising Investor]

KATY hits new 52-week high (7/15/15)

KATY INDUSTRIES INC (KATY)
Last Trade [tick] 4.4400[+]
Volume 8,915
Net Change 0.1900
Net Change % 4.47%
Day High 4.9500
Day Low 3.4500
52 Week High 4.9500 on 07/15/2015
52 Week Low 1.0000 on 08/25/2014

[Enterprising Investor]

KATY hits new 52-week high (7/13/15)

KATY INDUSTRIES INC (KATY)
Last Trade [tick] 4.4500 [-]
Volume 5,609
Net Change 0.2300
Net Change % 5.45%
Day High 4.9000
Day Low 4.4060
52 Week High 4.9000 on 07/13/2015
52 Week Low 1.0000 on 08/25/2014

[Enterprising Investor]

KATY hits new 52-week high (7/09/15)

KATY INDUSTRIES INC (KATY)
Last Trade [tick] 4.2600[+]
Volume 16,225
Net Change 0.8705
Net Change % 25.68%
Day High 4.5000
Day Low 3.3395
52 Week High 4.5000 on 07/09/2015
52 Week Low 1.0000 on 08/25/2014

[Enterprising Investor]

KATY hits new 52-week high (6/29/15)

KATY INDUSTRIES INC (KATY)
Last Trade [tick] 3.6000[+]
Volume 11,551
Net Change 0.6100
Net Change % 20.4%
Day High 3.7000
Day Low 2.9710
52 Week High 3.7000 on 06/29/2015
52 Week Low 1.0000 on 08/25/2014

[Enterprising Investor]

KATY hits new 52-week high (5/26/15)

KATY INDUSTRIES INC (KATY)
Last Trade [tick] 3.52[+]
Volume 4,149
Net Change 0.6300
Net Change % 21.8%
Day High 3.5200
Day Low 2.8895
52 Week High 3.5200 on 05/26/2015
52 Week Low 0.9100 on 06/12/2014

[Enterprising Investor]

KATY hits new 52-week high (5/19/15)

KATY INDUSTRIES INC (KATY)
Last Trade [tick] 2.8900[+]
Volume 3,355
Net Change 0.3600
Net Change % 14.23%
Day High 2.8900
Day Low 2.5295
52 Week High 2.8900 on 05/19/2015
52 Week Low 0.9100 on 06/12/2014

[Enterprising Investor]

Katy Industries Announces Acquisition of Certain Assets of Centrex Plastics (4/09/15)

St. Louis, MO, April 9, 2015 – Katy Industries, Inc. (“Katy”) announced today that it has completed the acquisition of the plastic shelving and cabinet business unit of Centrex Plastics, LLC (“Centrex”), including a lease of its Tiffin, Ohio manufacturing facility, effective April 7, 2015. Centrex is a leading manufacturer of specialized injection-molded plastic products for consumer and commercial applications. Centrex will continue to operate its remaining facility, located in Findlay, Ohio.

In connection with the acquisition, Katy and Centrex plan to collaborate in a number of strategic functions to take advantage of the rapidly growing market for home storage products. The collaboration includes sharing of best practices in advanced resin technologies and manufacturing processes, as well as product development, sales & marketing.

“We are excited about this transaction with Centrex,” commented David Feldman, President & CEO of Katy. “The acquisition brings Katy a state-of-the-art manufacturing operation, a growing line of home storage products, and a mutually beneficial partnership with an innovative and technically proficient company. I look forward to working closely with the Centrex team and growing our businesses together.”

“I am pleased to be partnering with Katy in this transaction,” said Terry Reinhart, President of Centrex. “Centrex and Katy share many of the same values and priorities, including most importantly a dedication to customer satisfaction. This transaction will strengthen each of our companies as we work together in the years to come.”

About Katy Industries, Inc.

Katy Industries, Inc. is a leading manufacturer, importer and distributor of commercial cleaning and consumer storage products. Katy markets its products under the Continental, Contico, Wilen and Fort Wayne Plastics brands. For more information, visit www.katyindustries.com.

About Centrex Plastics, LLC

Centrex Plastics is a specialized custom plastic injection molding manufacturing company focused on the following industries: automotive, heavy truck, consumer goods and packaging. For more information, visit www.centrexplastics.com.

http://www.sec.gov/Archives/edgar/data/54681/000114036115015161/ex99_1.htm

[Enterprising Investor]

KATY hits new 52-week high (4/01/15)

KATY INDUSTRIES INC (KATY)
Last Trade [tick] 2.7500
Volume 1,930
Net Change 0.1600
Net Change % 6.18%
52 Week High: 2.7500 on 04/01/2015
52 Week Low: 0.9100 on 06/12/2014

[Enterprising Investor]

Fort Wayne Plastics acquisition enhances sales revenue.

Net sales for the year ended December 31, 2014 were $99.7 million, an increase of $21.4 million, or 27.3%, compared to 2013. The increase was a result of the acquisition of FWP, which contributed $14.0 million in net sales for the year ended December 31, 2014,...

[Enterprising Investor]

Katy Industries, Inc. Reports Revenue Growth and Net Income in 2014 (3/30/15)

BRIDGETON, MO – March 30, 2015 – Katy Industries, Inc. (OTC BB: KATY) today reported net income for the year ended December 31, 2014 of $2.5 million, or $0.31 per basic share or $0.09 per diluted share, versus a net loss of $1.5 million, or $0.19 per basic and diluted share, for the year ended December 31, 2013. Net income from continuing operations was $2.5 million in 2014 compared to a net loss of $1.5 million in 2013. Operating income was $1.1 million, or 1.1% of net sales compared to a loss of $1.0 million, or 1.2% of net sales, for the same period in 2013.

Financial highlights for the year ended December 31, 2014, as compared to the year ended December 31, 2013, included:

· Net sales for the year ended December 31, 2014 were $99.7 million, an increase of $21.4 million, or 27.3%, compared to 2013. The increase was a result of the acquisition of FWP, which contributed $14.0 million in net sales for the year ended December 31, 2014, and increased demand in our Continental business unit.

· Gross profit was $15.1 million in 2014, an increase of 26.5% from $11.9 million for the year ended December 31, 2013. Gross margin was 15.1% for the year ended December 31, 2014, a decrease of 0.1 percentage point as a percentage of net sales from the prior year. Gross margin was impacted by an unfavorable variance in our LIFO adjustment of $0.3 million and $0.1 million for the years December 31, 2014 and December 31, 2013, respectively. Excluding the LIFO adjustments, gross margin for the years ended December 31, 2014 and December 31, 2013 was flat at 15.4%.

· Selling, general and administrative expenses were $14.0 million for the year ended December 31, 2014, a $1.7 million increase from the prior year. The increase was primarily due to the acquisition of FWP, unfavorable self-insurance experience for the year ended December 31, 2014 and one-time settlements received during the year ended December 31, 2013.

· Income tax benefit for the year ended December 31, 2014 includes a benefit as a result of the acquisition of FWP. The Company recorded deferred tax liabilities of $2.4 million which reduced its net deferred tax assets. The reduction in deferred tax assets caused a release of a valuation allowance of $2.3 million.

In the fourth quarter of 2014, Katy reported a net loss of $0.6 million, or $0.07 per share, an improvement of $0.4 million versus a net loss of $1.0 million, or $0.13 per share, in the fourth quarter of 2013. Loss from continuing operations was $0.6 million in the fourth quarter of 2014 compared to $0.7 million in the fourth quarter of 2013. Operating loss was $0.4 million, or 1.3% of net sales, in the fourth quarter of 2014, compared to of $0.6 million, or 3.4% of net sales, for the same period in 2013.

Financial highlights for the fourth quarter of 2014, as compared to the same period in the prior year, included:

· Net sales in the fourth quarter of 2014 were $27.6 million, an increase of $9.1 million, or 49.6%, from the fourth quarter of 2013. The increase was a result of the acquisition of Ft. Wayne Plastics (“FWP”), which contributed $4.4 million in net sales for the three months ended December 31, 2014, and increased demand in our Continental business unit.

· Gross profit in the fourth quarter of 2014 was $3.0 million, an increase of $0.6 million, or 22.5%, from the fourth quarter of 2013. Gross margin was 10.9% in the fourth quarter of 2014, a decrease from 13.3% as a percentage of sales in the fourth quarter of 2013. The decrease in gross margin percent was primarily a result of customer mix.

· Selling, general and administrative expenses were $3.4 million for the fourth quarter of 2014 compared to $3.1 million in the fourth quarter of 2013. The increase was primarily due to the first quarter acquisition of FWP, which increased SG&A expenses for the three months ended December 31, 2014 by $0.3 million.

Cash provided by operating activities before changes in operating assets and liabilities was $2.7 million for the year ended December 31, 2014 as compared to $0.9 million in the same period of 2013. Changes in operating assets and liabilities from continuing operations used $6.0 million for the year ended December 31, 2014 as compared to providing $0.7 million in the same period of 2013. The current year decrease was a result of higher accounts receivable and inventory for the year ended December 31, 2014 partially due to the acquisition of FTW in 2014.

Debt at December 31, 2014 was $22.0 million versus $7.7 million at December 31, 2013.

“We are pleased to report strong revenue growth and continuing improvements in operating income for the year” stated David J. Feldman, Katy’s President and Chief Executive Officer. “The acquisition of FWP has been a great addition to our company and we expect to realize ongoing benefits as we continue to implement our strategic operational plans.”

Non-GAAP Financial Measures

To provide transparency about measures of Katy’s financial performance which management considers most relevant, the Company supplements the reporting of Katy’s consolidated financial information under GAAP with a non-GAAP financial measure, Free Cash Flow. Free Cash Flow is defined by Katy as cash flow from operating activities less capital expenditures. A reconciliation of this non-GAAP measure to a comparable GAAP measure is provided in the “Statements of Cash Flows” accompanying this press release. This non-GAAP financial measure should be considered in addition to, and not as a substitute or superior to, the other measures of financial performance prepared in accordance with GAAP. Using only the non-GAAP financial measure to analyze the Company’s performance would have material limitations because its calculation is based on the subjective determinations of management regarding the nature and classification of events and circumstances that investors may find material. Management compensates for these limitations by utilizing both the GAAP and non-GAAP measures reflected below to understand and analyze the results of its business. Katy believes this measure is nonetheless useful to management and investors in measuring cash generated that is available for repayment of debt obligations, investment in growth through acquisitions, new business development and stock repurchases.

This press release may contain forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities and Exchange Act of 1934, as amended. Forward-looking statements include all statements of the Company’s plans, beliefs or expectations with respect to future events or developments and often may be identified by such words or phrases as “anticipates,” “believes,” “estimates,” “expects,” “intends,” “plans,” “projects,” “may,” “should,” “will,” “continue,” “is subject to,” or similar expressions. These forward-looking statements are based on the opinions and beliefs of Katy’s management, as well as assumptions made by, and information currently available to, the Company’s management. Additionally, the forward-looking statements are based on Katy’s current expectations and projections about future events and trends affecting the financial condition of its business. The forward-looking statements are subject to risks and uncertainties that may lead to results that differ materially from those expressed in any forward-looking statement made by the Company or on its behalf. These risks and uncertainties include, without limitation, conditions in the general economy and in the markets served by the Company, including changes in the demand for its products; success of any restructuring or cost control efforts; an increase in interest rates; competitive factors, such as price pressures and the potential emergence of rival technologies; interruptions of suppliers’ operations or other causes affecting availability of component materials or finished goods at reasonable prices; changes in product mix, costs and yields; labor issues at the Company’s facilities or those of its suppliers; legal claims or other regulator actions; and other risks identified from time to time in the Company’s filings with the SEC, including its Report on Form 10-K for the year ended December 31, 2013. Katy undertakes no obligation to revise or update such statements to reflect current events or circumstances after the date hereof or to reflect the occurrence of unanticipated events.

Katy Industries, Inc. is a diversified corporation focused on the manufacture, import and distribution of commercial cleaning products and consumer home products.


Company contact:
Katy Industries, Inc.
James W. Shaffer
[phone]
http://www.sec.gov/Archives/edgar/data/54681/000114036115013495/ex99_1.htm

[Enterprising Investor]

KATY hits new 52-week high (3/26/15)

KATY INDUSTRIES INC (KATY)
Last Trade [tick] 2.5400
Volume 10,461
Net Change 0.8400
Net Change % 49.41%
52 Week High: 2.5400 on 03/26/2015
52 Week Low: 0.9100 on 06/12/2014

[Enterprising Investor]

Gabelli Equity Series Funds, Inc owns 500,000 shares (12/31/14)

Controls 6.29 percent.

http://www.sec.gov/Archives/edgar/data/54681/000080724915000010/katy13g_03.htm

[Enterprising Investor]

NOLCFs approximately $62.1 million at 6/30/14.

If not offset against future income, expire in years 2020 through 2033.

[Enterprising Investor]

Katy Industries, Inc Announces Cancellation of the Special Meeting Scheduled for 3/19/09 (3/12/09)

BRIDGETON, MO – March 12, 2009 – Katy Industries, Inc. (“Katy” or the “Company”) (OTC BB: KATY) announced today that its Board of Directors has determined that the proposal to amend the Company’s Certificate of Incorporation to change the number of issued and outstanding shares of Katy by effecting a 1-for-500 reverse stock split with cash paid in lieu of resulting fractional shares (the “Reverse Stock Split”) was no longer in the best interests of the Company. This decision was due primarily to a change in the number of shares to be exchanged for cash in the Reverse Stock Split, which resulted in a substantial increase in the cost and expense of the Reverse Stock Split as compared to what was originally anticipated. As a result, the Board of Directors has decided to abandon the Reverse Stock Split and to cancel the Special Meeting of Stockholders of the Company scheduled for March 19, 2009. The Company will continue its current operations and will continue to be subject to the reporting requirements of the Securities and Exchange Commission.

Company contact:

Katy Industries, Inc.
James W. Shaffer

http://www.sec.gov/Archives/edgar/data/54681/000005468109000005/ex99-1.htm
[phone]

[Enterprising Investor]

Katy Industries, Inc. Reports Net Income in 2014 Third Quarter Results (11/10/14)

BRIDGETON, MO--(Marketwired - November 10, 2014) - Katy Industries, Inc. (OTCBB: KATY) today reported net income in the third quarter of 2014 of $1.4 million, or $0.17 per basic ($0.05 per diluted) share versus net income of $0.2 million, or $0.02 per basic ($0.00 per diluted) share, in the third quarter of 2013. Income from continuing operations was $1.4 million in the third quarter of 2014 compared to income of $0.2 million in the third quarter of 2013. Operating income was $1.5 million, or 5.8% of net sales, in the third quarter of 2014, compared to income of $0.4 million, or 2.0% of net sales, for the same period in 2013.

Financial highlights for the third quarter of 2014, as compared to the same period in the prior year, included:

•Net sales in the third quarter of 2014 were $26.5 million, an increase of $5.7 million, or 27.3%, compared to the same period in 2013. The increase was a result of the acquisition of Ft. Wayne Plastics ("FWP"); which contributed $4.4 million in net sales for the three months ended September 26, 2014, and increased demand in our Continental business unit.

•Gross margin was 18.8% in the third quarter of 2014, an increase from 17.3% in the third quarter of 2013. The increase in gross margin was primarily a result of a mix of higher margin product sales and operational efficiencies.

•Selling, general and administrative ("SG&A") expenses increased from $3.0 million in the third quarter of 2013 to $3.5 million in the third quarter of 2014. The increase was primarily due to the first quarter acquisition of FWP, which increased SG&A expenses for the three months ended September 26, 2014, and better casualty insurance experience during the three months ended September 27, 2013 as compared to the three months ended September 26, 2014.

The Company reported net income for the nine months ended September 26, 2014 of $3.1 million, or $0.38 per basic ($0.11 per diluted) share, versus a net loss of $0.5 million, or $0.06 per share, for the nine months ended September 27, 2013. Income from continuing operations was $3.1 million for the nine months ended September 26, 2014 compared to a loss of $0.9 million for the nine months ended September 27, 2013. Operating income was $1.4 million, or 2.0% of net sales, for the nine months ended September 26, 2014, compared to a loss of $0.3 million, or 0.1% of net sales, for the nine months ended September 27, 2013.

Financial highlights for the nine months ended September 26, 2014, as compared to the nine months ended September 27, 2013, included:

•Net sales for the nine months ended September 26, 2014 were $72.1 million, an increase of $12.3 million, or 20.5%, compared to the same period in 2013. The increase was a result of the acquisition of FWP, which contributed $9.6 million in net sales for the nine months ended September 26, 2014, and increased demand in our Continental business unit. The increase in net sales was partially offset, however, by a volume shortfall in our Wilen business unit and two less shipping days in the first nine months of 2014 versus the first nine months of 2013. Gross margin was 16.7% for the nine months ended September 26, 2014, an increase of 90 basis points from the same period a year ago. The increase was primarily a result of higher margins on the sales mix in our Continental business unit.

•Selling, general and administrative expenses were $10.6 million for the first nine months of 2014 as compared to $9.2 million for the first nine months of 2013. The increase was primarily due to the acquisition of FWP for the nine months ended September 26, 2014, which was partially offset by better casualty insurance experience and one-time settlements received during the nine months ended September 27, 2013.

•Income tax benefit for the nine months ended September 26, 2014 includes a benefit as a result of the acquisition of FWP. The Company recorded deferred tax liabilities of $2.4 million which reduced its net deferred tax assets. The reduction in deferred tax assets caused a release of a valuation allowance of $2.3 million.

Cash provided by operating activities before changes in operating assets and liabilities was $2.7 million in the first nine months of 2014 as compared to $1.1 million in the same period of 2013. Changes in operating assets and liabilities from continuing operations used $5.7 million in the first nine months of 2014 as compared to $0.7 million in the same period of 2013. The increase in usage is primarily attributable to an increase in accounts receivables and inventory, which was partially offset by an increase in accounts payable.

Debt at September 26, 2014 was $22.0 million, versus $7.7 million at December 31, 2013.

"We are pleased to report net income for a third consecutive quarter," stated David J. Feldman, Katy's President and Chief Executive Officer. "The acquisition of FWP has been a great addition to our company and we expect to realize ongoing benefits as we continue to implement our strategic operational plans."

[table deleted]

http://www.marketwired.com/press-release/katy-industries-inc-reports-net-income-in-2014-third-quarter-results-1966340.htm

[Huckleberry Pieman]

Anyone have an idea about the Ft Wayne purchase?

[ErnieBilco]

Gross margin was 11.7% in the second quarter of 2012, an increase from 8.2% in the second quarter of 2011

[ErnieBilco]

http://gemtexabrasives.com/

[ErnieBilco]

http://www.continentalcommercialproducts.com/

[ErnieBilco]

Friday's close .22 (Aug 10th)

[ErnieBilco]

KATY par value $1

[ErnieBilco]

KATY AS 35mil

[ErnieBilco]

KATY OS 7.951 million (apr 2012)

[doone]

Annual sales of $120,000,000
Less than 8,000,000 shares outstanding
Market cap of $5,000,000

Business: Katy Inds, (KATY) Katy Industries, Inc. manufactures and distributes commercial cleaning supplies and storage products for sanitary maintenance, foodservice, mass merchant retail, and home improvement markets in the United States, Canada, and Europe. The company offers commercial waste receptacles, buckets, mop wringers, and janitorial carts, under the Continental, Kleen Aire, Huskee, SuperKan, KingKan, Unibody, and Tilt-N-Wheel brands; and plastic home storage products, including domestic storage containers, and shelving and hard plastic gun cases under the Contico and Tuffbin brands. It also provides industrial storage drums and pails under the Contico and Contico Container brands; filtration, cleaning, and specialty products, such as fryer filters, oil stabilizing powders, grill cleaning implements, and other food service items under the Disco, BriteSorb, and Brillo brands; and resin fiber disks and other coated abrasives under the Trim-Kut brand. In addition, the company offers non-woven abrasive products, such as floor maintenance pads, hand pads, scouring pads, cleaning and finishing abrasives, and roof ventilation products under the Glit, Kleenfast, Glit/Microtron, Fiber Naturals, Big Boss II, Blue Ice, Brillo, BAB-O, Old Dutch, and Twister brands; and supplies materials to various original equipment manufacturers. Further, it provides cleaning products, including mops, brooms, brushes, and plastic cleaning accessories under the Wilen, Wax-o-matic, and Rototech brands. The company sells its cleaning products to janitorial/sanitary and foodservice distributors that supply end users, such as restaurants, hotels, healthcare facilities, and schools; and storage products through home improvement and mass market retail outlets. Katy Industries markets its products through direct sales personnel, manufacturers’ sales representatives, and wholesale distributors. The company was founded in 1967 and is based in Arlington, Virginia with an additional office in Bridgeton, Missouri.

[di4]

Katy Industries, Inc. Reports 2009 First Quarter Results
May 13, 2009 5:01:00 PM


Email Story Discuss on ZenoBank

View Additional ProfilesBRIDGETON, Mo., May 13 /PRNewswire-FirstCall/ -- Katy Industries, Inc. (OTC Bulletin Board: KATY) today reported a net loss in the first quarter of 2009 of $2.4 million ($0.30 per share), versus a net loss of $3.4 million ($0.43 per share), in the first quarter of 2008. Operating loss was $2.0 million (5.8% of net sales) in the first quarter of 2009, compared to $3.6 million (8.6% of net sales) in the same period of 2008.


During the first quarter of 2008, Katy reported expense for restructuring and other non-recurring or unusual items of $0.3 million, including severance, restructuring and related costs of $0.1 million and loss on disposal of assets of $0.5 million, offset partially by $0.3 million income from activity of discontinued businesses. There were no such charges in the first quarter of 2009.


Financial highlights for the first quarter of 2009, as compared to the same period in the prior year, included:


-- Net sales in the first quarter of 2009 were $35.1 million, a decrease of
$6.6 million, or 15.8%, compared to the same period in 2008. The
decrease resulted from lower volumes across all of the business units
driven by market softness, as well as the decision to exit certain
unprofitable business lines.
-- Gross margin was 14.6% in the first quarter of 2009 versus 8.1% in the
fourth quarter of 2008 and 9.2% in the first quarter of 2008. Gross
margin was impacted by a favorable quarter over quarter variance in the
LIFO adjustment of $1.5 million resulting from a decrease in resin costs
and lower inventory levels, in addition to improved factory productivity
and cost controls.
-- Selling, general and administrative expenses were $0.4 million higher in
the first quarter of 2009 than in the first quarter of 2008. The
increase was driven primarily by costs associated with the transition
and hiring of executive level personnel, restructuring of the commercial
organization and costs related to the plan to deregister the
Company's common stock under the Securities and Exchange Act of
1934, as amended, which was abandoned on March 12, 2009.
-- Debt at April 3, 2009 was $17.0 million (50% of total capitalization),
versus $17.5 million (48% of total capitalization) at December 31, 2008.

-- Operations generated $1.2 million of free cash flow in the first quarter
of 2009 compared to a $6.2 million usage during the same period a year
ago. The fluctuation was a result of lower net loss quarter over
quarter, lower inventory and accounts receivable balances, and a
reduction in capital spending. Free cash flow, a non-GAAP financial
measure, is discussed further below.



"While we reported a net loss in the first quarter of 2009, our results showed improvement over both the first and fourth quarters of 2008," said David J. Feldman, Katy's President and Chief Executive Officer. "We remain optimistic that the remainder of 2009 will bring additional improvements."


Non-GAAP Financial Measures

To provide transparency about measures of Katy's financial performance which management considers most relevant, the Company supplements the reporting of Katy's consolidated financial information under GAAP with a non-GAAP financial measure, Free Cash Flow. Free cash flow is defined by Katy as cash flow from operations less capital expenditures and cash dividends paid. Details regarding this measure and a reconciliation of this non-GAAP measure to a comparable GAAP measure are provided in the "Statements of Cash Flows" accompanying this press release. This non-GAAP financial measure should be considered in addition to, and not as a substitute or superior to, the other measures of financial performance prepared in accordance with GAAP. Using only the non-GAAP financial measure to analyze the Company's performance would have material limitations because its calculation is based on the subjective determinations of management regarding the nature and classification of events and circumstances that investors may find material. Management compensates for these limitations by utilizing both the GAAP and non-GAAP measures reflected below to understand and analyze the results of its business. Katy believes this measure is nonetheless useful to management and investors in measuring cash generated that is available for repayment of debt obligations, investment in growth through acquisitions, new business development and stock repurchases.


This press release may contain forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities and Exchange Act of 1934, as amended. Forward-looking statements include all statements of the Company's plans, beliefs or expectations with respect to future events or developments and often may be identified by such words or phrases as "should", "intends", "is subject to", "expects", "will", "continue", "anticipate", "estimated", "projected", "may", "we believe", "future prospects", or similar expressions. These forward-looking statements are based on the opinions and beliefs of Katy's management, as well as assumptions made by, and information currently available to, the Company's management. Additionally, the forward-looking statements are based on Katy's current expectations and projections about future events and trends affecting the financial condition of its business. The forward-looking statements are subject to risks and uncertainties that may lead to results that differ materially from those expressed in any forward-looking statement made by the Company or on its behalf. These risks and uncertainties include, without limitation, conditions in the general economy and in the markets served by the Company, including changes in the demand for its products; success of any restructuring or cost control efforts; an increase in interest rates; competitive factors, such as price pressures and the potential emergence of rival technologies; interruptions of suppliers' operations or other causes affecting availability of component materials or finished goods at reasonable prices; changes in product mix, costs and yields; labor issues at the Company's facilities or those of its suppliers; legal claims or other regulator actions; and other risks identified from time to time in the Company's filings with the SEC, including its Report on Form 10-K for the year ended December 31, 2008. Katy undertakes no obligation to revise or update such statements to reflect current events or circumstances after the date hereof or to reflect the occurrence of unanticipated events.


Katy Industries, Inc. is a diversified corporation focused on the manufacture, import and distribution of commercial cleaning products and consumer home products.



Company contact:
Katy Industries, Inc.
James W. Shaffer
[phone]



KATY INDUSTRIES, INC. SUMMARY OF OPERATIONS - UNAUDITED
(In thousands, except per share data)
Three Months Ended
April 3, March 31,
2009 2008
---- ----

Net sales $35,092 $41,691
Cost of goods sold 29,955 37,863
------ ------
Gross profit 5,137 3,828
Selling, general and administrative expenses 7,164 6,737
Severance, restructuring and related charges - 138
Loss on sale or disposal of assets - 533
--- ---
Operating loss (2,027) (3,580)
Interest expense (309) (483)
Other, net (73) (14)
--- ---
Loss from continuing operations before income tax
(provision) benefit (2,409) (4,077)
Income tax (provision) benefit from continuing
operations (6) 352
--- ---
Loss from continuing operations (2,415) (3,725)
Loss from operations of discontinued businesses (net
of tax) - (252)
Gain on sale of discontinued businesses (net of tax) - 543
--- ---
Net loss $(2,415) $(3,434)
======= =======

Loss per share of common stock - basic and diluted:

Loss from continuing operations $(0.30) $(0.47)
Discontinued operations - 0.04
--- ----
Net loss $(0.30) $(0.43)
====== ======

Weighted average common shares outstanding - basic
and diluted 7,951 7,951
===== =====

Other Information:

Working capital $(5,647) $8,735
======= ======
Working capital, exclusive of deferred tax assets and
liabilities and debt classified as current $4,810 $16,029
====== =======
Long-term debt, including current maturities $17,010 $15,995
======= =======
Stockholders' equity $17,004 $32,894
======= =======
Capital expenditures $186 $1,037
==== ======



KATY INDUSTRIES, INC. BALANCE SHEETS - UNAUDITED
(In thousands)

April 3, December 31, March 31,
Assets 2009 2008 2008
---- ---- ----
Current assets:
Cash $855 $683 $618
Accounts receivable, net 15,220 13,773 19,868
Inventories, net 15,808 19,911 25,150
Other current assets 1,136 3,516 5,617
----- ----- -----
Total current assets 33,019 37,883 51,253
------ ------ ------

Other assets:
Goodwill 665 665 665
Intangibles, net 4,355 4,455 4,733
Other 2,861 1,809 2,959
----- ----- -----
Total other assets 7,881 6,929 8,357
----- ----- -----

Property and equipment 101,799 101,715 105,834
Less: accumulated depreciation (70,672) (69,232) (73,090)
------- ------- -------
Property and equipment, net 31,127 32,483 32,744
------ ------ ------

Total assets $72,027 $77,295 $92,354
======= ======= =======


Liabilities and stockholders' equity
Current liabilities:
Accounts payable $9,531 $10,283 $8,907
Book overdraft 1,776 2,289 2,433
Accrued expenses 16,902 17,281 23,884
Current maturities of long-term
debt 1,500 1,500 1,500
Revolving credit agreement 8,957 9,118 5,794
----- ----- -----
Total current liabilities 38,666 40,471 42,518

Long-term debt, less current
maturities 6,553 6,928 8,701
Other liabilities 9,804 10,603 8,241
----- ------ -----
Total liabilities 55,023 58,002 59,460
------ ------ ------

Stockholders' equity:
Convertible preferred stock 108,256 108,256 108,256
Common stock 9,822 9,822 9,822
Additional paid-in capital 26,951 27,248 27,375
Accumulated other comprehensive
loss (1,776) (1,742) (1,277)
Accumulated deficit (104,812) (102,397) (89,349)
Treasury stock (21,437) (21,894) (21,933)
------- ------- -------
Total stockholders' equity 17,004 19,293 32,894
------ ------ ------

Total liabilities and stockholders'
equity $72,027 $77,295 $92,354
======= ======= =======



KATY INDUSTRIES, INC. STATEMENTS OF CASH FLOWS - UNAUDITED
(In thousands)
Three Months Ended
April 3, March 31,
2009 2008
---- ----
Cash flows from operating activities:
Net loss $(2,415) $(3,434)
Income from discontinued operations - (291)
--- ----
Loss from continuing operations (2,415) (3,725)
Depreciation and amortization 1,656 1,823
Amortization of debt issuance costs 96 96
Stock-based compensation 7 (127)
Loss on sale or disposal of assets - 533
--- ---
(656) (1,400)
---- ------
Changes in operating assets and liabilities:
Accounts receivable (1,479) (1,833)
Inventories 4,032 928
Other assets 1,148 134
Accounts payable (728) (1,489)
Accrued expenses (214) (853)
Other (749) (363)
---- ----
2,010 (3,476)
----- ------

Net cash provided by (used in) continuing
operations 1,354 (4,876)
Net cash used in discontinued operations - (320)
--- ----
Net cash provided by (used in) operating
activities 1,354 (5,196)
----- ------

Cash flows from investing activities:
Capital expenditures (186) (1,037)
Proceeds from sale of assets, net - 35
--- ---

Net cash used in continuing operations (186) (1,002)
Net cash provided by discontinued operations - 4,424
--- -----
Net cash (used in) provided by investing
activities (186) 3,422
---- -----

Cash flows from financing activities:
Net (repayments) borrowings on revolving loans (131) 2,940
Decrease in book overdraft (513) (2,110)
Repayments of term loans (375) (399)
---- ----

Net cash (used in) provided by financing
activities (1,019) 431
------ ---

Effect of exchange rate changes on cash 23 (54)
--- ---
Net increase (decrease) in cash 172 (1,397)
Cash, beginning of period 683 2,015
--- -----
Cash, end of period $855 $618
==== ====

Reconciliation of free cash flow to GAAP Results:

Net cash provided by (used in) operating
activities $1,354 $(5,196)
Capital expenditures (186) (1,037)
---- ------
Free cash flow $1,168 $(6,233)
====== =======



SOURCE Katy Industries, Inc.



----------------------------------------------
James W. Shaffer of Katy Industries
Inc.
[phone]

[today32]

More buying from funds:

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http://idea.sec.gov/Archives/edgar/data/54681/000080724909000242/katy_42.htm

[Teamlasvegas]

GRUB # 1

March 12, 2009 - 4:53 PM EDT

KATY 0.65 -0.20

Katy Industries, Inc. Announces Cancellation of the Special Meeting Scheduled for March 19, 2009
BRIDGETON, Mo., March 12 /PRNewswire-FirstCall/ -- Katy Industries, Inc. ('Katy' or the 'Company') (OTC Bulletin Board: KATY) announced today that its Board of Directors has determined that the proposal to amend the Company's Certificate of Incorporation to change the number of issued and outstanding shares of Katy by effecting a 1-for-500 reverse stock split with cash paid in lieu of resulting fractional shares (the 'Reverse Stock Split') was no longer in the best interests of the Company. This decision was due primarily to a change in the number of shares to be exchanged for cash in the Reverse Stock Split, which resulted in a substantial increase in the cost and expense of the Reverse Stock Split as compared to what was originally anticipated. As a result, the Board of Directors has decided to abandon the Reverse Stock Split and to cancel the Special Meeting of Stockholders of the Company scheduled for March 19, 2009. The Company will continue its current operations and will continue to be subject to the reporting requirements of the Securities and Exchange Commission.


Company contact:
Katy Industries, Inc.
James W. Shaffer
[phone]




SOURCE Katy Industries, Inc.