Riviera Tool Company Reports Record First-Quarter Sales
14 January 2000
Riviera Tool Company Reports Record First-Quarter Sales
GRAND RAPIDS, Mich., Jan. 14 -- Riviera Tool Company
(Amex: RTC) today posted record sales and lower earnings for the first quarter
of fiscal 2000.
The Grand Rapids, Mich.-based designer and manufacturer of stamping die
systems for the automotive industry said sales increased 5.4 percent to $5.86
million for the quarter ending Nov. 30, 1999. First-quarter earnings were
$354,215, or $0.11 per diluted share, compared with $517,728, or $0.16 cents
per diluted share, for the same period in fiscal 1999.
Kenneth K. Rieth, president and chief executive officer, attributed the
decline in first-quarter earnings to increased depreciation and interest
expenses associated with its recently completed $10.6 million plant expansion.
The expansion will allow Riviera to compete for the largest and most complex
die systems used by the global automotive industry.
"We anticipated a timing difference between the increase in investment
expense and the ramp up in sales volume in order to achieve full utilization
of the Company's new level of capacity," Rieth said. "New order volume has
been soft over the past two quarters, primarily as the result in the timing
for the release of new models under development by the OEM automakers.
"We anticipate new orders will progressively increase over the next few
quarters as the automobile manufacturers release tooling programs associated
with these new models."
During the first four months of fiscal 2000, Riviera received
approximately $8.6 million in new order commitments. These tooling systems
will be used in the manufacture of underbody panels and structural frame
members for vehicles produced by DaimlerChrysler, Ford Motor Corp., General
Motors Corp. and their Tier One suppliers. These orders will be reflected in
sales and income over the next 10-12 months.
"Over the past several years, Riviera's sales growth has been constrained
by our lack of capacity, but our expansion will remedy that," Rieth said. "We
have already begun to aggressively market our enhanced abilities and increased
capacity to current and potential customers.
"We are increasingly bidding on a greater number of new platforms
associated with larger projects for the Big 3 and other automakers. We are
confident that Riviera will be successful in securing additional projects to
fill this new capacity."
Riviera's financial position continued to improve during the first
quarter. Cash flow from operations increased by over $3.4 million versus the
corresponding quarter a year ago, allowing Riviera to pay down nearly $414,000
in long-term debt and increase its investment in sales and marketing. As a
result, selling, general and administrative (SG&A) expenses increased 4.4
percent to $454,000 during the quarter, but remained flat as a percentage of
sales.
Riviera Tool Co. (http://www.rivieratool.com ) designs, develops and manufactures
large-scale, custom metal stamping die systems used in the high-speed
production of sheet metal parts and assemblies for the global automotive
industry. A majority of Riviera's sales are to DaimlerChrysler, GM, Ford
Motor Co. and their Tier One suppliers.
Safe Harbor Statement under the Private Securities Litigation Reform Act
of 1995: The statements contained in this news release include certain
predictions and projections that may be considered forward-looking statements
under securities laws. These statements involve a number of important risks
and uncertainties that could cause actual results to differ materially,
including but not limited to economic, competitive, governmental and
technological.
RIVIERA TOOL COMPANY
BALANCE SHEET
(UNAUDITED)
Balance Sheet 30-Nov-99 31-Aug-99
Current Assets: (Unaudited)
Cash $ 160,907 $ 113,183
Accounts receivable 6,232,873 6,821,519
Inventory 451,167 451,167
Costs and estimated gross
profit in excess of billings
on contracts in process 7,770,118 7,829,744
Prepaid Expenses 212,816 84,189
Total Current Assets 14,827,881 15,299,802
Property, Plant & Equipment 17,887,315 17,941,659
Perishable Tooling 582,890 550,634
Other Assets 135,770 135,770
Total Assets $ 33,433,856 $ 33,927,865
Current Liabilities:
Current Portion of
Long-Term Debt $ 1,889,415 $ 1,889,415
Accounts Payable 1,266,756 1,398,483
Accrued Expenses 541,280 1,030,984
Total Current
Liabilities 3,697,451 4,318,882
Long-term Debt 8,825,697 9,239,636
Deferred Tax Liability 1,568,753 1,386,278
Accrued Lease Expense 675,744 671,073
Total Liabilities 14,767,645 15,615,869
Shareholders Equity:
Common Stock 14,512,185 14,512,185
Retained Earnings 4,154,026 3,799,811
Total Shareholders
Equity 18,666,211 18,311,996
Total Liabilities &
Equity $ 33,433,856 $ 33,927,865
RIVIERA TOOL COMPANY
STATEMENT OF INCOME
(UNAUDITED)
For the Three Months Ended November 30
1999 1998
Total Revenue $5,855,021 $5,556,996
Cost of Sales 4,658,033 4,215,868
Gross Margin 1,196,988 1,341,128
Selling and Administrative Expenses 454,489 435,284
Operating Income 742,499 905,844
Other (Expense)/Income
Interest Expense (205,809) (122,978)
Other Income - 1,570
Total Other Expense, net (205,809) (121,408)
NET INCOME BEFORE TAXES 536,690 784,436
Income Tax Expense 182,475 266,708
NET INCOME $354,215 $517,728
BASIC EPS $0.11 $0.16
Basic Common Shares Outstanding 3,218,744 3,218,744
DILUTED EPS $0.11 $0.16
Diluted Common Shares Outstanding 3,218,744 3,218,744