Riviera Tool Company Announces Record Fourth Quarter
3 November 1998
Riviera Tool Company Announces Record Fourth Quarter, Record Annual Results and Declares a Five Percent Stock Dividend
GRAND RAPIDS, Mich., Nov. 2 -- Grand Rapids, Michigan-based
Riviera Tool Company (Amex: RTC) today reported record operating results for
the fourth quarter and year ended August 31, 1998 and the declaration of a
five percent stock dividend.
The Grand Rapids, Michigan-based designer and manufacturer of stamping die
systems reported net income for the year ended August 31, 1998 of $2,405,105,
or 79 cents per diluted share, on sales of $22,581,188, versus net income of
$1,184,781, or 48 cents per diluted share, on sales of $21,960,174 for fiscal
1997. For the fourth quarter, Riviera reported net income of $749,898, or
25 cents per diluted share, on sales of $4,163,048 compared with net income of
$603,869, or 24 cents per diluted share, on sales of $6,074,011 for the same
period in fiscal 1997. The aforementioned per share amounts are presented
with an additional 580,499 shares outstanding in fiscal 1998, as compared to
fiscal 1997.
The Company today also declared a five percent stock dividend. The stock
dividend is payable December 18 to shareholders of record on November 17,
1998.
"We are very pleased with our 1998 earnings performance," President
Kenneth K. Rieth said, adding, "The Company continues to position itself to
increase revenues while maintaining margins and earnings per share. Although
we did not achieve 1998 sales growth as we anticipated, we are pleased that we
achieved our earnings goal and increased earnings per diluted share by 64.5%."
In completing the 1998 year-end financial statements it was determined
that the Company had understated its advanced billings liability as of August
31, 1995. The net after tax effect of the understatement was a reduction of
net worth of $2.1 million as of August 31, 1995. The restatement had no
effect on the Company's net income for the years ended August 31, 1996, 1997
and 1998. Notwithstanding such adjustment, the Company's audit committee has
initiated further investigation of this matter.
This release contains forward-looking statements relating to future
financial and other results. Forward-looking statements include statements
concerning plans, objectives, goals, strategies, future events or performance
and underlying assumptions and other statements that are other than statements
of historical facts. Such forward-looking statements may be identified by the
use of the words "anticipates," "expects," "plans," "predicts," "projects,"
and similar expressions. These cautionary statements and any other cautionary
statements that may accompany the forward-looking statements expressly qualify
all such statements. Forward-looking statements involve risk and
uncertainties that could cause actual results or outcomes to differ materially
from those expressed in the forward-looking statements.
Riviera designs, develops and manufactures custom large scale metal
stamping die systems used in the high speed production of sheet metal stamped
parts and assemblies for the automobile industry. Riviera's common stock
trades on the American Stock Exchange under the symbol "RTC".
Riviera Tool Company
Statement of Income
For the Fourth Quarter and Year Ended August 31, 1998 and 1997
Fourth Qtr. Fourth Qtr. Year Ended Year Ended
Statement of Income 1998 1997 1998 1997
Total revenue 4,163,048 6,074,011 22,581,188 21,960,174
Cost of goods sold 3,446,731 4,220,971 17,096,966 16,831,905
Gross profit 716,317 1,853,040 5,484,222 5,128,269
Operating Expenses:
Selling expense 67,226 55,514 289,362 131,114
Administrative expense (15,422) 423,983 1,373,979 1,572,770
Total operating
expenses 51,804 479,497 1,663,341 1,703,884
Operating income 664,513 1,373,543 3,820,881 3,424,385
Interest & Other
Expense/(Income):
Interest expense (199,333) 155,925 244,232 1,211,287
Other (Income)/expense 4,457 246,406 131,568 361,717
Total interest exp. &
other income, net (194,876) 402,331 375,800 1,573,004
NET INCOME BEFORE TAXES 859,389 971,212 3,445,081 1,851,381
Income taxes 109,491 367,343 1,039,976 666,600
NET INCOME AFTER TAX 749,898 603,869 2,405,105 1,184,781
Dividends expense 293 (2,204) 202,108 7,228
NET INCOME AVAILABLE TO
COMMON SHAREHOLDERS $749,605 $606,073 $2,202,997 $1,177,553
BASIC EARNINGS $0.25 $0.25 $0.86 $0.60
Weighted Average
Shares O/S 3,065,499 2,470,000 2,558,263 1,968,750
DILUTED EARNINGS
PER SHARE $0.25 $0.24 $0.79 $0.48
Common Shares O/S 3,065,499 2,470,000 3,065,499 2,470,000
Riviera Tool Company
Balance Sheet
August 31
1997 1998
ASSETS
Current Assets
Cash -- $4,206
Accounts receivable:
Trade 4,614,257 1,609,272
Related party 201,286 --
Costs and estimated gross
profit in excess
of billings on
contracts in process 3,955,958 11,299,961
Inventories 468,740 405,566
Prepaid expenses and
other current assets 267,554 172,054
Total current assets 9,507,795 13,491,059
Property, Plant and Equipment, net 9,640,330 13,237,501
Perishable Tooling 572,585 743,966
Deferred income tax asset 147,600 --
Other Assets 187,843 223,869
Total assets $20,056,153 $27,696,395
LIABILITIES AND STOCKHOLDERS' EQUITY
Current Liabilities
Notes payable $-- $--
Current portion of long-term debt 650,000 876,555
Accounts payable 1,241,243 1,113,113
Accrued liabilities 634,924 204,682
Total current liabilities 2,526,167 2,194,350
Long-Term Debt 7,202,393 8,196,641
Accrued Lease Expense 605,660 643,040
Deferred Tax Liability -- 780,376
Common Stockholders' Equity
Common stock -- No par value,
Authorized -- 9,798,575 shares
Issued and outstanding -- 2,485,000
shares at August 31, 1997
and 3,065,499 at
August 31, 1998 9,539,879 13,496,937
Retained earnings 182,054 2,385,051
Total Common Stockholders'
equity 9,721,933 15,881,988
Total liabilities and
stockholders' equity $20,056,153 $27,696,395