Riviera Tool Company Reports Third-Quarter Results
Riviera Tool Company Reports Third-Quarter Results
GRAND RAPIDS, Mich., July 16 Riviera Tool Company
(Amex: RTC) today reported its results for the third quarter of fiscal 2001.
The Grand Rapids, Mich.-based designer and manufacturer of stamping die
systems reported a net loss of $938,519, or $0.28 per share, on net sales of
$2.3 million for the quarter ended May 31, 2001, compared with net income of
$369,388, or $0.11 per share, on net sales of $6.7 million for the same period
a year ago.
For the nine months ended May 31, 2001, the Company reported a net loss of
$2.5 million, or $0.74 per share, on net sales of $9.3 million, compared with
net income of $59,918, or $.02 per share, on sales of $17.7 million for the
same period a year ago.
"Continued softness in the global automotive market has made it
exceptionally difficult for all manufacturers in the tooling industry, and
Riviera is no exception," said Kenneth K. Rieth, president and chief executive
officer of Riviera Tool. "Although we were involved in significant quoting
activity during the third quarter, automakers remain reluctant to release new
tooling contracts. This has created a very competitive pricing environment on
those contracts that have been released.
"We will continue to seek opportunities to bid on new projects, but we
must be selective in this process to ensure that all new orders will
contribute positively to our margins."
During the third quarter, gross profit as a percentage of sales decreased,
due primarily to the decrease in revenue. Although spending on direct labor,
engineering and overhead decreased, these expenses increased as a percentage
of sales because of the lower revenues.
The Company continued a series of cost-containment measures initiatives
during the first quarter of fiscal 2001. These initiatives have resulted in
savings of shop floor expense, engineering expense and salaries.
"We have taken the necessary steps to allow us to weather these difficult
market conditions, which have impacted our entire industry," Rieth said.
"Automakers continue to review their global product platforms with an eye to
streamlining model offerings and maximizing efficiency. Based on the current
level of quoting activity, we are hopeful that automakers will begin to
release new contracts over the next several quarters, although sluggish sales
could impact the remainder of fiscal 2001.
"We have tried to prepare the Company financially for this slowdown. Our
balance sheet remains strong, and we continue to pay down long-term debt."
Riviera Tool Co. (http://www.rivieratool.com ) designs, develops and manufactures
large-scale, custom metal stamping die systems used in the high-speed
production of sheet metal parts and assemblies for the global automotive
industry. A majority of Riviera's sales are to DaimlerChrysler, GM, Ford
Motor Co. and their Tier One suppliers.
Safe Harbor Statement under the Private Securities Litigation Reform Act
of 1995: The statements contained in this news release include certain
predictions and projections that may be considered forward-looking statements
under securities laws. These statements involve a number of important risks
and uncertainties that could cause actual results to differ materially,
including but not limited to economic, competitive, governmental and
technological.
RIVIERA TOOL COMPANY
FINANCIAL STATEMENTS
BALANCE SHEETS
ASSETS MAY 31, AUGUST 31,
2001 2000
CURRENT ASSETS (UNAUDITED) (AUDITED)
Cash $34,304 $113,699
Accounts receivable 5,594,165 7,052,169
Costs and estimated gross
profit in excess of billings
on contracts in process 2,711,770 8,564,651
Inventories 306,675 306,675
Federal income tax refundable - 673,897
Prepaid expenses and other current assets 81,936 170,170
Total current assets 8,728,850 16,881,261
PROPERTY, PLANT AND EQUIPMENT, NET 16,571,467 17,445,289
PERISHABLE TOOLING 575,167 538,743
OTHER ASSETS 135,770 210,770
Total assets $26,011,254 $35,076,063
LIABILITIES AND
STOCKHOLDERS' EQUITY
CURRENT LIABILITIES
Current portion of
long-term debt $1,983,964 $1,983,964
Accounts payable 515,735 1,410,834
Accrued liabilities 593,187 434,689
Total Current liabilities 3,092,886 3,829,487
LONG-TERM DEBT 5,781,736 10,303,197
DEFERRED TAX LIABILITY 243,110 1,538,000
ACCRUED LEASE EXPENSE 691,510 689,758
Total liabilities 9,809,242 16,360,442
PREFERRED STOCK - no par value,
$100 mandatory redemption value:
Authorized - 5,000 shares
Issued and outstanding - None - -
STOCKHOLDERS' EQUITY:
Preferred Stock - no par value,
Authorized - 200,000 shares
Issued and outstanding - None - -
Common stock - No par value:
Authorized - 9,785,575 shares
Issued and outstanding - 3,379,609 shares at
May 31, 2001 and August 31, 2000 15,115,466 15,115,466
Retained earnings 1,086,546 3,600,155
Total stockholders' equity 16,202,012 18,715,621
Total liabilities and
stockholders' equity $26,011,254 $35,076,063
RIVIERA TOOL COMPANY
STATEMENTS OF OPERATIONS
(UNAUDITED)
FOR THE THREE MONTHS ENDED FOR THE NINE MONTHS ENDED
MAY 31, MAY 31, MAY 31, MAY 31,
2001 2000 2001 2000
SALES $2,301,545 $6,674,923 $9,279,578 $17,705,544
COST OF SALES 3,149,592 5,364,041 11,208,182 15,170,645
GROSS INCOME/
(LOSS) (848,047) 1,310,882 (1,928,604) 2,534,899
SELLING AND
ADMINISTRATIVE
EXPENSES 427,070 457,895 1,276,818 1,690,828
INCOME/(LOSS)
FROM
OPERATIONS (1,275,117) 852,987 (3,205,422) 844,071
OTHER INCOME/(EXPENSE)
Interest
expense (146,882) (248,591) (602,978) (656,677)
Other expense - 13,211 (98) 12,009
Gain (Loss) on
asset disposals - (50,201) - (100,892)
TOTAL OTHER
EXPENSE - NET (146,882) (285,581) (603,076) (745,560)
INCOME/(LOSS)
BEFORE TAXES
ON INCOME (1,421,999) 567,406 (3,808,498) 98,511
INCOME TAX
(CREDIT)/EXPENSE (483,480) 198,018 (1,294,889) 38,593
NET INCOME/(LOSS)
AVAILABLE FOR COMMON
SHARES $(938,519) $369,388 $(2,513,609) $59,918
BASIC AND DILUTED INCOME/(LOSS)
PER COMMON SHARE $(.28) $.11 $(.74) $.02
BASIC AND DILUTED
COMMON SHARES
OUTSTANDING 3,379,609 3,379,609 3,379,609 3,379,609
RIVIERA TOOL COMPANY
STATEMENTS OF CASH FLOWS
(UNAUDITED)
FOR THE NINE MONTHS ENDED
MAY 31, 2001 MAY 31, 2000
CASH FLOWS FROM OPERATING ACTIVITIES
Net Income/(loss) $(2,513,609) $59,918
Adjustments to reconcile net
income(loss)to net cash
from operating activities:
Depreciation 1,428,632 1,418,927
Loss on disposal of assets - 100,893
Deferred taxes (1,294,890) (350,580)
(Increase) decrease in assets:
Accounts receivable 1,458,004 (1,286,712)
Federal income tax receivable 673,897 -
Costs and estimated gross profit in
excess of billings on contracts in
process 5,852,881 1,181,157
Inventory - 35,000
Perishable tooling (36,424) (61,410)
Prepaid expenses and other
current assets 88,234 (79,812)
Increase (decrease) in liabilities:
Accounts payable (895,099) (77,182)
Accrued lease expense 1,752 14,013
Accrued liabilities 158,498 (667,730)
Net Cash provided by
operating activities $4,921,876 $286,482
CASH FLOWS FROM INVESTING ACTIVITIES
Proceeds from sale of assets - 8,500
Increase (Decrease) in other assets 75,000 (75,000)
Additions to property,
plant and equipment (554,810) (1,362,487)
Net cash used in investing activity $(479,810) $(1,428,987)
CASH FLOWS FROM FINANCING ACTIVITIES
(Payments on) Proceeds from
revolving credit line (3,072,429) 2,439,070
Principal payments on long-term debt (1,449,032) (1,393,424)
Net cash (used in) provided by
financing activities $(4,521,461) $1,045,646
NET DECREASE IN CASH $(79,395) $(96,859)
CASH - Beginning of Period 113,699 113,183
CASH - End of Period $34,304 $16,324