Riviera Tool Company Announces Fourth Quarter and Annual Results And Completion of Preferred Stock Placement
27 October 1997
Riviera Tool Company Announces Fourth Quarter and Annual Results And Completion of Preferred Stock Placement
GRAND RAPIDS, Mich., Oct. 27 -- Riviera Tool Company
(Amex: RTC) today announced its operating results for the fourth quarter and
year ended August 31, 1997. The Grand Rapids, Michigan-based designer and
manufacturer of metal stamping die systems reported net income for the year
ended August 31, 1997 of $1,177,553, or 60 cents per share, on sales of
$21,960,174, versus net income of $367,228, or 25 cents per share, on sales of
$18,334,093 for fiscal 1996. For the fourth quarter, Riviera reported net
income of $606,073, or 24 cents per share, on sales of $6,074,011, compared
with net income of $94,481, or 6 cents per share, on sales of $4,312,582 for
the same period in fiscal 1996.
The Company also announced the private placement of an additional 19,800
shares of 8% Convertible Preferred Stock convertible at $6 per share. This
completes the placement of 80,000 shares of 8% Cumulative Convertible
Preferred Stock at $100 per share totaling $8,000,000. On October 13, 1997,
the Company announced the initial placement and issuance of 60,200 shares of
8% Convertible Preferred Stock. Of the $8,000,000 proceeds from the sale of
Preferred Stock, $3 million was used to redeem and retire 730,000 common
shares (a per share price of $4.11) owned by Motor Wheel Corporation. The
remaining proceeds will be used for future investment in technology and
capital equipment.
"Since the Initial Public Offering in March, 1997, the Company now has the
proper financial resources necessary to accept larger orders and to further
improve upon its processes, which accounts in part for the increase in both
revenue and margins for fiscal 1997," President Kenneth K. Rieth said.
"Adding that we are excited about 1998, having both the Initial Public
Offering and the recent $8,000,000 Convertible Preferred Stock offering
completed, we can continue our ongoing efforts to grow our business while
continuing to focus on improving operating margins to enhance long term
shareholder value."
This release contains forward-looking statements relating to future
financial results. Actual results may differ materially as a result of
factors over which the Company has no control. These risk factors and
additional information are included in the Company's reports on Form S-1 on
file with the Securities and Exchange Commission.
Riviera designs, develops and manufactures medium to large scale metal
stamping die systems used in the high speed production of sheet metal parts
and assemblies for the automotive industry. Riviera's common stock trades on
the American Stock Exchange under the symbol "RTC."
RIVIERA TOOL COMPANY
CONSOLIDATED STATEMENT OF OPERATIONS
For the Three Months Ended
August 31,
1997 1996
$$ % $$ %
Sales $6,074,011 100.0% $4,312,582 100.0%
Cost of Sales 4,220,971 69.5% 3,702,868 85.9%
Gross Profit 1,853,040 30.5% 609,714 14.1%
Selling, General &
Administrative Expense 479,497 7.9% 80,435 1.9%
Income from Operations 1,373,543 22.6% 529,279 12.2%
Interest Expense 150,453 2.5% 482,601 11.1%
Other Expense 246,368 4.1% --- ---%
Other Income 5,510 ---% 104,070 2.4%
Total Interest and
Other Expense 402,331 6.6% 378,531 8.7%
Income before Tax 971,212 16.0% 150,748 3.5%
Income Taxes 367,343 6.1% 42,000 1.O%
Net Income 603,869 9.9% 108,748 2.5%
Dividends and Accretion (2,204) ---% 14,267 .3%
Net Income Available
for Common Shares $606,073 9.9% $94,481 2.2%
Net Income per Share $.24 $.06
Weighted Average Shares 2,485,000 1,460,000
RIVIERA TOOL COMPANY
CONSOLIDATED STATEMENT OF OPERATIONS
For the Year Ended August 31,
1997 1996
$$ % $$ %
Sales $21,960,174 100.0% $18,334,093 100.0%
Cost of Sales 16,831,905 76.6% 14,936,514 81.5%
Gross Profit 5,128,269 23.4% 3,397,579 18.5%
Selling, General &
Administrative Expense 1,703,884 7.8% 1,354,112 7.4%
Income from Operations 3,424,385 15.6% 2,043,467 11.1%
Interest Expense 1,211,287 5.5% 1,670,414 9.1%
Other Expense 406,368 1.9% --- ---%
Other Income 44,651 .2% 226,710 1.2%
Total Interest and
Other Expense 1,573,004 7.2% 1,443,704 7.9%
Income before Tax 1,851,381 8.4% 599,763 3.2%
Income Taxes 666,600 3.0% 204,000 1.1%
Net Income 1,184,781 5.4% 395,763 2.1%
Dividends and Accretion 7,228 --- 28,535 .1%
Net Income Available
for Common Shares $1,177,553 5.4% $367,228 2.0%
Net Income per Share $.60 $.25
Weighted Average Shares 1,968,750 1,460,000
RIVIERA TOOL COMPANY
CONSOLIDATED STATEMENT OF OPERATIONS
August 31, August 31,
1997 1996
Assets:
Cash $ --- $ ---
Accounts receivable 4,815,543 5,269,197
Contracts in process 7,138,358 5,549,823
Inventories 468,740 445,473
Prepaid expenses and other
current assets 267,554 250,210
Total Current Assets 12,690,195 11,514,703
Fixed assets, net 9,640,330 10,147,146
Perishable tooling 572,585 759,258
Other assets 187,843 507,325
Total Assets $23,090,953 $22,928,432
Liabilities and shareholders' equity:
Current maturities of
long-term debt $650,000 $11,577,589
Accounts payable 1,241,243 2,913,878
Accrued liabilities 634,924 692,271
Total Current Liabilities 2,526,167 15,183,738
Long-term obligations, net
of current maturities 7,202,393 1,001,794
Other liabilities 1,540,060 1,016,175
Redeemable preferred stock --- 139,072
Shareholders' equity 11,822,333 5,587,653
Total Liabilities and
Shareholders' Equity $23,090,953 $22,928,432
SOURCE Riviera Tool Company