Riviera Tool Company Reports 70% Increase In Q2 Net Income
29 March 1999
Riviera Tool Company Reports Seventy Percent Increase In Second Quarter Net Income
GRAND RAPIDS, Mich., March 29 -- Grand Rapids, Michigan-based
Riviera Tool Company (Amex: RTC) today reported its operating results for the
three and six months ended February 28, 1999. The Grand Rapids, Michigan-
based designer and manufacturer of stamping die systems, reported net income
for the three months ended February 28, 1999 of $695,272 or 21 cents per
share, on sales of $5,071,638, versus net income of $408,213, or 16 cents per
share, on sales of $6,095,638 for the second quarter ended February 28, 1999.
Net income for the quarter increased 70% and earnings per share increased 31%
over the second quarter of 1998.
For the six months ended February 28, 1999, net income was $1,213,000 or
37 cents per share, on sales of $10,628,084, versus net income of $739,171, or
30 cents per share, on sales of $11,539,443 for the six months ended February
28, 1999. Net income for the six months increased 64% and earnings per share
increased 23% over the same six month period in fiscal year 1998. The
aforementioned per share amounts are presented on a diluted basis with an
additional 156,076 shares outstanding in fiscal 1999, as compared to the
corresponding period in the prior year.
"We are very pleased to have managed to increase our profit margins to
further enhance shareholder value and are looking forward to the completion of
our capital expansion program which will provide the Company the opportunity
to increase future revenues," Riviera President Kenneth K. Rieth said.
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
FINANCIAL STATEMENTS
BALANCE SHEET
ASSETS February 28, August 31,
1999 1998
CURRENT ASSETS Note (unaudited) (audited)
Cash $-- $4,206
Accounts Receivable 3,740,818 1,609,272
Costs and estimated
gross profit in
excess of billings
on contracts in
process 2 13,101,341 11,299,961
Inventories 330,566 405,566
Prepaid expenses and
other current assets 302,898 172,054
Total current assets 17,475,623 13,491,059
PROPERTY, PLANT AND
EQUIPMENT, NET 3 17,457,491 13,237,501
PERISHABLE TOOLING 696,576 743,966
OTHER ASSETS 223,885 223,869
Total assets $35,853,575 $27,696,395
LIABILITIES AND
STOCKHOLDERS' EQUITY
CURRENT LIABILITIES
Current portion of
long-term debt 4 $1,316,672 $876,555
Accounts payable 4,019,153 1,113,113
Accrued liabilities 249,000 204,682
Total Current liabilities 5,584,825 2,194,350
LONG-TERM DEBT 4 11,111,126 8,196,641
ACCRUED LEASE EXPENSE 657,057 643,040
DEFERRED TAX LIABILITY 1,405,579 780,376
STOCKHOLDERS' EQUITY:
Common stock - No par value:
Authorized - 9,785,575
shares 1
Issued and outstanding -
3,317,744 shares at February
28, 1999 and 3,065,499 shares
at August 31, 1998 14,512,185 13,496,937
Retained earnings 1 2,582,803 2,385,051
Total stockholders'
equity 17,094,988 15,881,988
Total liabilities and
stockholders' equity $35,853,575 $27,696,395
RIVIERA TOOL COMPANY
STATEMENTS OF OPERATIONS
(UNAUDITED)
For The Three Months Ended For The Six Months Ended
February 28, February 28,
1999 1998 1999 1998
SALES $5,071,088 $6,095,638 $10,628,084 $11,539,443
COST OF SALES 3,439,293 4,433,736 7,655,161 8,617,806
GROSS PROFIT 1,631,795 1,661,902 2,972,923 2,921,637
SELLING, GENERAL AND
ADMINISTRATIVE
EXPENSES 551,034 558,958 986,318 1,062,700
INCOME FROM
OPERATIONS 1,080,761 1,102,944 1,986,605 1,858,937
OTHER INCOME (EXPENSE)
Interest
expense (109,424) (129,560) (232,402) (261,390)
Other expense -- (110,686) -- (109,192)
Gain (Loss) on
asset sales 4,872 (40,900) 6,442 (18,634)
TOTAL OTHER EXPENSE
- NET (104,552) (281,146) (225,960) (389,216)
INCOME BEFORE TAXES
ON INCOME 976,209 821,798 1,760,645 1,469,721
INCOME TAXES 280,937 295,849 547,645 528,735
NET INCOME 695,272 525,949 1,213,000 940,986
DIVIDENDS AND ACCRETION ON
PREFERRED STOCK -- 117,736 -- 201,815
NET INCOME AVAILABLE FOR
COMMON SHARES $695,272 $408,213 $1,213,000 $739,171
BASIC EARNINGS
PER COMMON SHARE $.21 $.18 $.37 $.32
BASIC COMMON SHARES
OUTSTANDING 3,317,744 2,269,331 3,317,744 2,294,565
DILUTED EARNINGS
PER COMMON SHARE $.21 $.16 $.37 $.30
DILUTED COMMON SHARES
OUTSTANDING 3,317,744 3,317,744 3,317,744 3,161,668