Riviera Tool Company Announces First-Quarter Results
GRAND RAPIDS, Mich., Jan. 15 /PRNewswire-FirstCall/ -- Riviera Tool Company today announced its results for the first quarter of fiscal 2002.
The Grand Rapids, Mich.-based designer and manufacturer of stamping die systems reported a net loss of $815,785, or $0.24 per share, on net sales of $3.4 million for the quarter ended Nov. 30, 2001, compared with a net income of $332,443, or $0.10 per share, on net sales of $4.6 million for the first quarter of fiscal 2000.
``We continue to face the most difficult market conditions in the 32-year history of Riviera Tool,'' said Kenneth K. Rieth, president and chief executive officer. ``The automakers and their Tier One suppliers continue to delay or cancel program launches in an effort to bolster their own bottom lines. The few contracts that have been released continue to create a state of hyper competition, which is resulting in price erosion.
``These factors continue to depress both contract revenue and margins. We have maintained our strategy of bidding on contracts at rates that, if awarded, would contribute positively to our results. We will continue to seek opportunities to bid on new projects, but we will remain selective in this process.''
Riviera continued a series of cost-containment initiatives, including layoffs and work-week reductions, in an effort to better manage costs. These initiatives, which were undertaken in the first quarter of fiscal 2001, have resulted in further savings in salaries, engineering expense and shop floor expense.
Additionally, the Company said it has reduced operating costs by 12 percent in the quarter, reflecting a reduction in public company costs, decreased directors' fees and lower single-business tax levels. Riviera said these cost reductions were offset by increased investment in technology and selling, as well as higher legal and professional fees.
``The strength of our balance sheet, in combination with an aggressive program of cost-saving measures, should allow us to weather these challenging marketing conditions, which continue to affect our entire industry,'' Rieth said. ``Although 2001 proved to be a good year for automotive in terms of unit sales, it was not a profitable year for the automakers -- and they are already concerned that the sluggishness in the economy will impact 2002 sales.
``Automakers recognize that consumers want fresh, new vehicles when they walk into dealerships. Recent promotions and hires within the ranks of the Big 3 indicate they recognize the importance of styling, and will place renewed emphasis on design. We remain hopeful that, based on the current level of quoting activity, that automakers will begin to release contracts for new models over the next several quarters. The remainder of fiscal 2002 will be negatively impacted by sluggish market conditions, though.''
About Riviera:
Riviera Tool Co. (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 November 30, August 31,
2001 2001
CURRENT ASSETS Note (unaudited) (audited)
Cash $ - $282,721
Accounts receivable 4,456,856 3,449,430
Costs and estimated gross
loss in excess of billings
on contracts in process 4,648,007 4,153,569
Inventories 308,977 308,977
Prepaid expenses and
other current assets 130,497 97,289
Total current assets 9,544,337 8,291,986
PROPERTY, PLANT AND
EQUIPMENT, NET 15,682,715 16,146,059
PERISHABLE TOOLING 546,742 572,822
OTHER ASSETS 135,770 135,770
Total assets $25,909,564 $25,146,637
LIABILITIES AND
STOCKHOLDERS' EQUITY
CURRENT LIABILITIES
Current portion of
long-term debt $7,225,648 $1,875,631
Accounts payable 464,041 898,212
Accrued liabilities 485,244 342,007
Total Current liabilities 8,174,933 3,115,850
LONG-TERM DEBT 3,050,448 6,526,729
ACCRUED LEASE EXPENSE 688,004 692,094
Total liabilities 11,913,385 10,334,673
PREFERRED STOCK - no par value,
$100 mandatory redemption value:
Authorized - 5,000 shares
Issued and outstanding -
no shares - -
STOCKHOLDERS' EQUITY:
Preferred stock - no par value,
Authorized - 200,000 shares
Issued and outstanding - no shares - -
Common stock - No par value:
Authorized - 9,785,575 shares
Issued and outstanding - 3,379,609
shares at November 30, 2001 and
August 31, 2001 15,115,466 15,115,466
Retained deficit (1,119,287) (303,502)
Total stockholders'
equity 13,996,179 14,811,964
Total liabilities and
stockholders' Equity $25,909,564 $25,146,637
RIVIERA TOOL COMPANY
STATEMENTS OF OPERATIONS
(UNAUDITED)
For The Three Months Ended
November 30
2001 2000
SALES $3,363,674 $4,591,897
COST OF SALES 3,545,576 4,326,424
GROSS PROFIT (LOSS) (181,902) 265,473
SELLING, GENERAL AND
ADMINISTRATIVE EXPENSES 465,867 528,303
LOSS FROM OPERATIONS (647,769) (262,830)
OTHER (EXPENSE)
Interest expense (167,779) (240,689)
Other expense (237) (182)
TOTAL OTHER EXPENSE (168,016) (240,871)
LOSS BEFORE income tax benefit (815,785) (503,701)
INCOME TAX BENEFIT - (171,258)
NET LOSS AVAILABLE FOR
COMMON SHARES $(815,785) $(332,443)
BASIC AND DILUTED LOSS
PER COMMON SHARE $(.24) $(.10)
BASIC AND DILUTED COMMON SHARES
OUTSTANDING 3,379,609 3,379,609
RIVIERA TOOL COMPANY
STATEMENT OF CASH FLOWS
(UNAUDITED)
For the Three Months Ended
November 30,
2001 2000
CASH FLOWS FROM OPERATING ACTIVITIES
Net loss $(815,785) $(332,443)
Adjustments to reconcile
net income to net cash
from operating activities:
Depreciation and amortization 477,441 476,212
Deferred taxes - (171,258)
(Increase) decrease in assets:
Accounts receivable (1,007,426) 516,584
Costs and estimated gross
profit/loss in excess of
billings on contracts in process (494,438) 1,031,683
Perishable tooling 26,080 (49,345)
Prepaid expenses and other
current assets (33,208) (11,463)
Increase (decrease) in liabilities:
Accounts payable (434,170) (595,696)
Accrued lease expense (4,090) 585
Accrued liabilities 143,236 (78,837)
Net cash provided by/(used in)
operating activities $(2,142,360) $786,022
CASH FLOWS FROM INVESTING ACTIVITIES
Additions to property, plant
and equipment (14,097) (250,395)
Net cash used in investing activity $(14,097) $(250,395)
CASH FLOWS FROM FINANCING ACTIVITIES
Net borrowings (repayments) on
revolving credit line 2,369,728 (120,202)
Principal payments on notes
payable to bank and
non-revolving equipment
line of credit (495,992) (495,990)
Net cash provided by/(used in)
financing activities $1,873,736 $(616,192)
NET DECREASE IN CASH $(282,721) $(80,565)
CASH - Beginning of Period 282,721 113,699
CASH - End of Period $ - $33,134