Riviera Tool Co Announces 56% Increase In First Quarter Net Income
17 December 1998
Riviera Tool Company Announces Fifty-Six Percent Increase In First Quarter Net Income
GRAND RAPIDS, Mich., Dec. 16 -- Grand Rapids, Michigan-based
Riviera Tool Company (Amex: RTC) today reported its operating results for the
quarter ended November 30, 1998. The Grand Rapids, Michigan-based designer
and manufacturer of stamping die systems reported net income of $517,728 or
diluted earnings per share of 17 cents, on sales of $5,556,996, versus net
income of $330,958, or 15 cents per diluted share, on sales of $5,443,805 for
the first quarter ended November 30, 1997. First quarter net income increased
56% over the comparable quarter last year and first quarter diluted earnings
per share increased 13% over the comparable diluted earnings per share for the
first quarter last year.
"We are encouraged by our continual margin growth over last year's first
quarter and further enhancing shareholder value," President Kenneth K. Rieth
said. He added that "in December, 1998, the Company received approximately
$5.0 million in new order commitments which support our current expansion
program." These commitments will be recognized as revenue and net income in
1999 and 2000.
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 report on Form 10-K on
file with the Securities and Exchange Commission.
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 OPERATIONS
For the Three Months Ended
November 30,
1998 1997
$$ % $$ %
Sales $ 5,556,996 100.0% $ 5,443,805 100.0%
Cost of sales 4,215,868 75.9% 4,184,070 76.9%
Gross profit 1,341,128 24.1% 1,259,735 23.1%
Selling, General &
Administrative
Expense 435,284 7.8% 503,742 9.3%
Income from
Operations 905,844 16.3% 755,993 13.8%
Interest
Expense (122,978) (2.2)% (131,829) (2.4)%
Other Expense -- -- % -- -- %
Other Income 1,570 -- % 23,759 .4%
Total Interest and
Other Expense (121,408) (2.2)% (108,070) (2.0)%
Income before
Tax 784,436 14.1% 647,923 11.8%
Income Taxes 266,708 4.8% 232,886 4.3%
Net Income 517,728 9.3% 415,037 7.5%
Dividends and
Accretion -- --% 84,079 1.5%
Net Income Available
for Common
Shares $517,728 9.3% $330,958 6.0%
Primary Earnings
per share $ .17 $ .16
Weighted Average Shares
Outstanding 3,087,391 2,067,857
Fully Diluted Earnings
Per share $ .17 $ .15
Fully Diluted Shares
Outstanding 3,087,391 2,755,962
RIVIERA TOOL COMPANY
BALANCE SHEETS
November 30, August 31,
1998 1998
Assets:
Cash $ 29,883 $ 4,206
Accounts receivable 2,801,108 1,609,272
Contracts in process 13,773,823 11,299,961
Inventories 368,066 405,566
Prepaid expenses and
other current assets 314,404 172,054
Total current assets 17,287,284 13,491,059
Fixed assets, net 13,730,694 13,237,501
Perishable tooling 734,108 743,966
Other assets 223,885 223,869
Total Assets $ 31,975,971 $ 27,696,695
Liabilities and shareholders' equity:
Current maturities
of long-term debt $876,555 $876,555
Accounts payable 1,118,521 1,113,113
Accrued liabilities 269,487 204,682
Total current liabilities 2,264,553 2,194,350
Long-term obligations,
net of current maturities 11,614,559 8,196,641
Other liabilities 1,697,133 1,423,416
Shareholders' equity 16,399,716 15,881,988
Total Liabilities
and Shareholders' Equity $ 31,975,971 $ 27,696,395