Riviera Tool Company Announces Third Quarter Results and New Orders
29 June 1999
Riviera Tool Company Announces Third Quarter Results and New Orders
GRAND RAPIDS, Mich., June 29 -- Grand Rapids, Michigan-based
Riviera Tool Company (Amex: RTC) today reported its operating results for the
three and nine months ended May 31, 1999. The Grand Rapids, Michigan-based
designer and manufacturer of stamping die systems, reported net income for the
three months ended May 31, 1999 of $805,396 or 24 cents per diluted share, on
sales of $6,444,605, versus net income of $712,791, or 21 cents per diluted
share, on sales of $6,878,697 for the third quarter ended May 31, 1998. Net
income for the quarter increased 13% over the third quarter of 1998.
For the nine months ended May 31, 1999, net income was $2,018,396 or 61
cents per diluted share, on sales of $17,072,689, versus net income of
$1,655,207, or 51 cents per diluted share, on sales of $18,418,140 for the
nine months ended May 31, 1998. Net income for the nine months increased 22%
over the same period in fiscal year 1998. The aforementioned nine months per
share amounts are presented on a diluted basis with an additional 103,443
shares outstanding in 1999, as compared to the corresponding period in the
prior year.
"We are pleased with the performance of the Company considering the
challenges presented during our recent expansion," Riviera President Kenneth
K. Rieth said. "Just as important though, we are particularly pleased to have
added German-based BMW as a new customer as a direct result of this
expansion," added Rieth.
In the third quarter, the Company experienced record gains in new orders.
During the period, the Company received approximately $13.5 million in new
order commitments. These tooling systems will be used in the manufacture of
internal and external body panels together with under body panels for sport
utility vehicles and passenger cars produced by DaimlerChrysler, General
Motors and BMW. These orders will be reflected in sales and income over the
next ten to twelve months.
The Company's $10.0 million capital expansion plan is near completion. As
the result of this expansion, the Company now has the ability to manufacture
the largest of stamping die systems, which on a global basis, there are
limited suppliers which maintain this level of capability utilizing the latest
in computerized design and manufacturing technology. "The BMW program is a
primary example of this investment strategy," said Rieth. The Company will
provide BMW certain die construction services, productionize these large
tooling systems and validate the results of the manufacturing process.
Additionally, the expansion and upgrade of the Company's high-speed
computerized machining capacity has, and continues, to positively contribute
in the Company's operating margins.
Commenting on the Company's stock performance, Mr. Rieth indicated, "These
have been trying times for companies such as Riviera Tool Company which
operate within the small or micro cap arena. However, I am confident that our
continued focus on key fundamentals, such as quality top-line revenue and
earnings growth, should ultimately result in more appropriate valuations for
our shareholders at the point when this market segment once again attracts
more investor attention."
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 May 31, August 31,
1999 1998
CURRENT ASSETS (unaudited) (audited)
Cash $ -- $4,206
Accounts Receivable 6,640,471 1,609,272
Costs and estimated gross profit in
excess of billings on contracts
in process 10,151,498 11,299,961
Inventories 293,066 405,566
Prepaid expenses and other current assets 119,254 172,054
Total current assets 17,204,289 13,491,059
PROPERTY, PLANT AND EQUIPMENT, NET 18,046,337 13,237,501
PERISHABLE TOOLING 614,964 743,966
OTHER ASSETS 223,885 223,869
Total assets $36,089,475 $27,696,395
LIABILITIES AND
STOCKHOLDERS' EQUITY
CURRENT LIABILITIES
Current portion of long-term debt $1,316,674 $876,555
Accounts payable 2,927,368 1,113,113
Accrued liabilities 749,444 204,682
Total Current liabilities 4,993,486 2,194,350
LONG-TERM DEBT 10,802,611 8,196,641
ACCRUED LEASE EXPENSE 664,065 643,040
DEFERRED TAX LIABILITY 1,728,929 780,376
STOCKHOLDERS' EQUITY:
Common stock - No par value:
Authorized - 9,785,575 shares
Issued and outstanding - 3,317,744
shares at May 31, 1999 and 3,065,499
shares at August 31, 1998 14,512,185 13,496,937
Retained earnings 3,388,199 2,385,051
Total stockholders' equity 17,900,384 15,881,988
Total liabilities and
stockholders' equity $36,089,475 $27,696,395
RIVIERA TOOL COMPANY
FINANCIAL STATEMENTS
STATEMENTS OF OPERATIONS
(UNAUDITED)
For The Three Months For The Nine Months
Ended Ended
May 31, May 31,
1999 1998 1999 1998
SALES $6,444,605 $6,878,697 $17,072,689 $18,418,140
COST OF SALES 4,505,297 5,032,429 12,160,458 13,650,235
GROSS PROFIT 1,939,308 1,846,268 4,912,231 4,767,905
SELLING, GENERAL AND
ADMINISTRATIVE EXPENSES 550,190 548,837 1,536,508 1,611,537
INCOME FROM OPERATIONS 1,389,118 1,297,431 3,375,723 3,156,368
OTHER INCOME (EXPENSE)
Interest expense (35,078) (182,175) (267,480) (443,565)
Other expense -- -- -- (110,686)
Gain (Loss)
on asset sales (433) (715) 6,009 (16,425)
TOTAL OTHER EXPENSE
- NET (35,511) (182,890) (261,471) (570,676)
INCOME BEFORE TAXES
ON INCOME 1,353,607 1,114,541 3,114,252 2,585,692
INCOME TAXES 548,211 401,750 1,095,856 930,485
NET INCOME 805,396 712,791 2,018,396 1,655,207
PREFERRED STOCK DIVIDENDS -- -- -- 201,815
NET INCOME AVAILABLE
FOR COMMON SHARES $805,396 $712,791 $2,018,396 $1,453,392
BASIC EARNINGS
PER COMMON SHARE $.24 $.21 $.61 $.55
BASIC COMMON SHARES
OUTSTANDING 3,317,744 3,065,499 3,317,744 2,639,571
DILUTED EARNINGS
PER COMMON SHARE $.24 $.21 $.61 $.51
DILUTED COMMON SHARES
OUTSTANDING 3,317,744 3,317,744 3,317,744 3,214,301
RIVIERA TOOL COMPANY
STATEMENT OF CASH FLOWS
(UNAUDITED)
For the Six Months Ended
May 31,
1999 1998
CASH FLOWS FROM OPERATING ACTIVITIES
Net income $2,018,396 $1,655,207
Adjustments to reconcile net income
to net cash from operating activities:
Depreciation and amortization 856,916 890,850
Loss (Gain) on sale of equipment -- 18,178
Deferred taxes 948,553 825,485
(Increase) decrease in assets:
Accounts receivable (5,031,199) 2,019,955
Costs and estimated gross profit in
excess of billings on contracts in
process 1,048,463 (6,511,291)
Inventory 112,500 30,000
Perishable tooling 129,002 131,865
Prepaid expenses and other current assets 52,800 (105,916)
Increase (decrease) in liabilities:
Accounts payable 1,814,255 (84,116)
Accrued lease expense 21,025 28,036
Accrued liabilities 544,762 (57,365)
Net Cash Provided by (Used in)
operating activities $2,515,473 $(1,159,112)
CASH FLOWS FROM INVESTING ACTIVITIES
Proceeds from sale of machinery & equipment -- 1,092,847
Additions to property, plant and equipment (5,565,768) (3,769,133)
Net cash used in investing activity $(5,565,768) $(2,676,286)
CASH FLOWS FROM FINANCING ACTIVITIES
Net proceeds from issuance of preferred stock -- 8,000,000
Principal (payments)/proceeds
from short-term debt 440,119 --
Principal (payments)/proceeds
from long-term debt 2,605,970 105,448
Capitalized refinancing costs -- (1,067,942)
Repurchase and retirement of common stock -- (3,000,000)
Preferred stock dividends -- (202,168)
Net cash provided by financing
activities $3,046,089 $3,835,398
NET INCREASE IN CASH $(4,206) $ --
CASH - Beginning of Period 4,206 --
CASH - End of Period $ -- $ --