Riviera Tool Reports Third Quarter Results
GRAND RAPIDS, Mich., July 17 -- Riviera Tool Co. (AMEX:RTC) today reported its financial results for the third quarter ended May 31, 2006.
The Grand Rapids, Mich.-based designer and manufacturer of stamping die systems reported net sales increased 30 percent to $6.1 million for the third quarter of 2006 compared with net sales of $4.7 million for the third quarter of 2005. The Company attributed its increased sales to higher levels of contract backlog at the end of fiscal 2005 as compared to fiscal 2004. The Company's backlog as of August 31, 2005 was $13.7 million, as compared to $2.5 million in 2004.
During the third quarter, the Company received $3.7 million in new contracts bringing its contract backlog to $9.2 million as of May 31, 2006 compared with $11.0 million as of May 31, 2005. Subsequent to the third quarter, the Company was awarded new contracts totaling approximately $1.0 million.
Riviera reported net income of $18,391 for the third quarter of 2006 compared with a loss of $775,816, for the same period in fiscal 2005. The Company reported operating income of $508,299 for the third quarter of 2006 compared with an operating loss of $79,655 for the third quarter of 2005.
For the nine months ended May 31, 2006, Riviera reported net sales of $19.1 million compared with last year's net sales of $14.2 million, an increase of 35 percent. The Company posted a net loss of $557,764, or $0.13 per diluted share for the first nine months of fiscal 2006 versus a net loss of $1,668,293, or $0.44 per diluted share, for the same period last year.
"The increased volumes in conjunction with maintaining costs have had a positive impact on operating margins during fiscal 2006," said Kenneth K. Rieth, president and chief executive officer of Riviera Tool. "We have managed to increase gross margins slightly as well as lowering general and administrative expenses from 14.8 percent of sales for the first nine months of 2005 to 9.6 percent for the same period in 2006. We remain extremely focused on increasing revenue and lowering costs to produce a foundation for sustainable long-term profitability."
About Riviera Tool
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 BMW, Nissan, DaimlerChrysler, General Motors Corp., 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
CONDENSED BALANCE SHEETS
ASSETS May 31, August 31,
2006 2005
CURRENT ASSETS (unaudited) (audited)
Cash $18,900 $239,475
Accounts receivable, net 9,036,878 5,232,138
Costs in excess of billings on contracts
in process 2,926,447 2,844,444
Inventories 236,437 236,437
Prepaid expenses and other current assets 391,587 453,597
Total current assets 12,610,249 9,006,091
PROPERTY, PLANT AND EQUIPMENT, NET 9,822,687 10,902,845
PERISHABLE TOOLING 610,016 708,319
OTHER ASSETS 463,986 599,344
Total assets $23,506,938 $21,216,599
LIABILITIES AND STOCKHOLDERS' EQUITY
CURRENT LIABILITIES
Current portion of long-term debt $3,436,496 $3,287,510
Accounts payable 4,492,764 3,517,578
Accrued liabilities 790,046 661,833
Total current liabilities 8,719,306 7,466,921
LONG-TERM AND SUBORDINATED DEBT, NET OF
UNAMORTIZED DISCOUNT 10,242,865 8,870,045
ACCRUED LEASE EXPENSE 970,784 897,885
Total liabilities 19,932,955 17,234,851
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 - 4,257,601 shares
and 3,984,874 shares as of May 31, 2006
and August 31, 2005, respectively 17,280,483 17,130,483
Retained deficit (13,706,500) (13,148,735)
Total stockholders' equity 3,573,983 3,981,748
Total liabilities and stockholders' equity $23,506,938 $21,216,599
RIVIERA TOOL COMPANY
CONDENSED STATEMENTS OF OPERATIONS
(UNAUDITED)
For The Three Months For The Nine Months
Ended Ended
May 31, May 31, May 31, May 31,
2006 2005 2006 2005
SALES $6,136,378 $4,687,278 $19,152,162 $14,220,838
COST OF SALES 4,957,607 4,106,830 16,410,546 12,297,177
GROSS PROFIT 1,178,771 580,448 2,741,616 1,923,661
SELLING, GENERAL AND
ADMINISTRATIVE
EXPENSES 670,472 660,103 1,834,002 2,106,934
INCOME/(LOSS) FROM
OPERATIONS 508,299 (79,655) 907,614 (183,273)
OTHER EXPENSE
Interest expense 431,408 391,737 1,321,210 1,139,822
Other expense 58,500 304,424 144,168 345,198
TOTAL OTHER EXPENSE 489,908 696,161 1,465,378 1,485,020
INCOME/(LOSS) BEFORE
INCOME TAXES 18,391 (775,816) (557,764) (1,668,293)
INCOME TAXES - - - -
NET INCOME/(LOSS) $18,391 $(775,816) $(557,764) $(1,668,293)
BASIC AND DILUTED
INCOME/(LOSS) PER
COMMON SHARE $ - $(.20) $(.13) $(.44)
WEIGHTED-AVERAGE BASIC
AND DILUTED COMMON
SHARES OUTSTANDING 4,257,601 3,807,527 4,152,706 3,785,569
RIVIERA TOOL COMPANY
CONDENSED STATEMENTS OF CASH FLOWS
(UNAUDITED)
For the Three Months For the Nine Months
Ended Ended
May 31, May 31, May 31, May 31,
2006 2005 2006 2005
CASH FLOWS FROM OPERATING ACTIVITIES
Net income/(loss) $18,390 $(775,816) $(557,764) $(1,668,293)
Adjustments to reconcile
net income/(loss) to net cash
from operating activities:
Depreciation and
amortization 471,489 427,701 1,414,467 1,283,103
(Increase) decrease in
assets:
Accounts
receivable (1,040,564) 311,319 (3,804,740) 10,458,316
Costs in excess of
billings on contracts
in process 70,156 (833,342) (82,003) (2,736,016)
Perishable tooling 75,016 23,614 98,303 (7,426)
Prepaid expenses and
other current
assets (21,365) 337,272 62,010 298,787
Increase (decrease) in
liabilities:
Accounts payable 486,046 (617,115) 975,186 (1,040,451)
Accrued lease expense 47,873 23,292 72,899 69,876
Accrued liabilities (30,654) 67 128,213 326,353
Deferred compensation - - - (166,474)
Net cash provided by/(used in)
operating activities $76,387 $(1,103,008) $(1,693,429) $6,817,775
CASH FLOWS FROM INVESTING ACTIVITIES
Decrease/(increase) in
other assets 49,670 (55,163) 135,358 24,291
Deletions/(additions) to
property, plant and
equipment (55,260) (7,074) (111,262) (254,163)
Net cash provided by/(used in)
investing activities $(5,590) $(62,237) $24,096 $(229,872)
CASH FLOWS FROM FINANCING ACTIVITIES
Net borrowings (repayments)
on revolving credit line 69,750 - 2,395,523 -
Proceeds from sale of
common stock - 3,158 150,000 3,158
Deferred interest - (141,500) - (141,500)
Principal payments on notes
payable/overformula (375,327) - (1,090,912) (42,300)
Proceeds from issuance of
convertible debt - 3,200,000 - 3,200,000
Proceeds from issuance of
convertible revolving note - 4,031,127 - 4,031,127
Proceeds from overformula note - 2,000,000 - 2,000,000
Debt issuance costs - (579,491) - (579,491)
Repayments of bank
revolving note - (2,595,878) - (9,849,532)
Repayments of bank term debt - (1,589,777) - (1,835,100)
Repayments of subordinated
debt - (3,000,000) - (3,000,000)
Decrease of capital lease (1,983) (1,984) (5,853) (5,853)
Net cash provided by/(used in)
financing activities $(446,124) $1,325,655 $1,448,758 $(6,219,491)
NET INCREASE/(DECREASE) IN
CASH $(375,327) $160,410 $(220,575) $368,412
CASH - Beginning of Period 394,227 209,202 239,475 1,200
CASH - End of Period $18,900 $369,612 $18,900 $369,612