Riviera Tool Reports Third Quarter Results; Closes New Financing
GRAND RAPIDS, Mich., July 15 /PRNewswire-FirstCall/ -- Riviera Tool
Co. (AMEX:RTC) today announced sales and net income for the third
quarter and nine months ended May 31, 2004. The Grand Rapids,
Mich.-based designer and manufacturer of stamping die systems
reported net income of $238,584, or $0.06 per diluted share, on net
sales of $7.6 million for the third quarter of fiscal 2004,
compared with net income of $391,099, or $0.12 per diluted share,
on net sales of $9.9 million for the same period of fiscal 2003.
Rivera attributed the decrease in net sales to being in the final
completion stages of two major contracts along with delayed
releases in significant new tooling programs. For the nine months
ended May 31, 2004, Riviera reported net sales of $24.2 million, a
seven percent increase over last year's net sales of $22.6 million.
The Company posted increased earnings of $688,597, or $0.18 per
diluted share, for the first nine months of fiscal 2004, versus
$433,533, or $0.13 per diluted share, for the same period last
year. The Company attributed its increased year-to-date sales and
earnings to significant tooling programs for the Mercedes-Benz M
Class sports utility vehicle and a new crossover vehicle along with
related engineering and die management services. The Company
reported a backlog of approximately $7.6 million as of May 31, 2004
compared to a backlog of $21.7 million at the end of the third
quarter of 2003. Since the end of the just completed quarter, the
Company has been awarded approximately $3.1 million in new
contracts. "We are pleased with our performance for the first three
quarters of 2004 in light of the continued softness in the tooling
market," said Kenneth K. Rieth, president and chief executive
officer of Riviera Tool. "We are cautious for the fourth quarter as
we anticipate a decrease in contract revenues reflecting the
delayed releases in significant new tooling programs. However, we
remain to be optimistic on the tooling market as we continue to see
an increase in quoting activities. We believe that there is
substantial pent-up demand however, the timing of new contract
releases continues to be a concern." The Company reported its gross
margin improved to 10.6 percent for the first nine months of 2004,
up from 10.0 percent for the same period last year. Due to lower
direct material and engineering expenses, gross margins for the
third quarter also increased slightly to 11.4 percent versus 11.0
percent for the same period last year. Rivera's SG&A (selling,
general and administrative) expenses increased slightly over the
third quarter to 6.3 percent of sales versus 5.1 percent of sales
last year, mostly due to costs being absorbed over lower sales.
Riviera also announced today the completion of two additional
financing commitments. In June 2004, the Company closed on an
expanded facility with its primary lender, Comerica Bank,
increasing its Revolving Line of Credit from $10.0 million to $12.5
million and securing a $500,000 Non-Revolving Equipment Line of
Credit. In July 2004, the Company completed a private placement of
$3.0 million of six-year subordinated debt. "These financings will
assist us in providing additional working capital necessary to
support the required Mercedes contract backend financing, while
providing us additional working capital to support anticipated
significant future contracts," said Rieth. "The financial markets'
continued backing of Riviera indicates their belief in our
long-term strategic plan." About Riviera Tool 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
Mercedes-Benz, BMW, Nissan, DaimlerChrysler, General Motors Corp.,
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 FINANCIAL STATEMENTS BALANCE SHEETS ASSETS May 31, August
31, 2004 2003 CURRENT ASSETS (unaudited) (audited) Cash $1,280 $ -
Accounts receivable 12,061,707 7,010,039 Costs in excess of
billings on contracts in process 8,365,262 12,208,666 Inventories
248,559 248,559 Prepaid expenses and other current assets 457,965
294,143 Total current assets 21,134,773 19,761,407 PROPERTY, PLANT
AND EQUIPMENT, NET 12,602,324 13,046,289 PERISHABLE TOOLING 658,793
617,722 OTHER ASSETS 347,660 325,198 Total assets $34,743,550
$33,750,616 LIABILITIES AND STOCKHOLDERS' EQUITY CURRENT
LIABILITIES Current portion of long-term debt $667,176 $638,756
Accounts payable 5,335,263 5,020,554 Accrued outsourced contracts
payable 2,990,721 5,903,930 Accrued liabilities 809,184 435,896
Total current liabilities 9,802,344 11,999,136 LONG-TERM DEBT
9,500,951 8,400,333 CAPITAL LEASE 14,449 - ACCRUED LEASE EXPENSE
715,840 640,690 Total liabilities 20,033,584 21,040,159 PREFERRED
STOCK - no par value, $100 mandatory redemption value: Authorized -
5,000 shares Issued and outstanding - no shares - - STOCKHOLDERS'
EQUITY: Preferred stock - no par value, Authorized - 200,000 shares
Issued and outstanding - no shares - - Common stock - No par value:
Authorized - 9,785,575 shares Issued and outstanding - 3,774,346 at
May 31, 2004 and 3,379,609 shares at August 31, 2003 16,426,378
15,115,466 Retained deficit (1,716,412) (2,405,009) Total
stockholders' equity 14,709,966 12,710,457 Total liabilities and
stockholders' equity $34,743,550 $33,750,616 RIVIERA TOOL COMPANY
STATEMENTS OF OPERATIONS (UNAUDITED) For The Three Months For The
Nine Months Ended Ended May 31, May 31, May 31, May 31, 2004 2003
2004 2003 SALES $7,596,931 $9,919,178 $24,200,591 $22,561,901 COST
OF SALES 6,729,645 8,826,409 21,642,926 20,306,338 GROSS PROFIT
867,286 1,092,769 2,557,665 2,255,563 SELLING, GENERAL AND
ADMINISTRATIVE EXPENSES 479,920 505,935 1,389,060 1,244,540 INCOME
FROM OPERATIONS 387,366 586,834 1,168,605 1,011,023 TOTAL INTEREST
AND OTHER EXPENSE 148,782 195,735 480,008 577,490 INCOME BEFORE
INCOME TAXES 238,584 391,099 688,597 433,533 INCOME TAXES - - - -
NET INCOME AVAILABLE FOR COMMON SHARES $238,584 $391,099 $688,597
$433,533 BASIC AND DILUTED INCOME PER COMMON SHARE $.06 $.12 $.18
$.13 BASIC AND DILUTED COMMON SHARES OUTSTANDING 3,774,346
3,379,609 3,774,346 3,379,609 RIVIERA TOOL COMPANY STATEMENT OF
CASH FLOWS (UNAUDITED) For the Three Months For the Nine Months
Ended Ended May 31, May 31, May 31, May 31, 2004 2003 2004 2003
CASH FLOWS FROM OPERATING ACTIVITIES Net income $238,584 $391,099
$688,597 $433,533 Adjustments to reconcile net income to net cash
from operating activities: Depreciation and amortization 421,599
460,482 1,264,798 1,381,446 (Increase) decrease in assets: Accounts
receivable (7,171,218) 4,825,325 (5,051,668) (1,994,606) Costs in
excess of billings on contracts in process 3,124,750 (5,440,988)
3,843,404 (2,897,601) Perishable tooling (35,697) (34,650) (41,071)
(68,295) Prepaid expenses and other current assets 49,741 20,061
(163,822) (173,157) Increase (decrease) in liabilities: Accounts
payable 853,652 196,871 314,709 1,667,985 Accrued outsourced
contracts payable (3,557,595) 1,925,174 (2,913,209) 3,030,889
Accrued lease expense 25,050 (8,761) 75,150 (26,284) Accrued
liabilities 54,602 397,135 373,288 481,860 Net cash provided by/
(used in) operating activities $(5,996,532) $2,731,748 $(1,609,824)
$1,835,770 CASH FLOWS FROM INVESTING ACTIVITIES Increase in other
assets - - (22,462) (22,138) Additions to property, plant and
equipment (529,610) (121,706) (820,833) (182,052) Net cash used in
investing activities $(529,610) $(121,706) $(843,295) $(204,190)
CASH FLOWS FROM FINANCING ACTIVITIES Net borrowings (repayments) on
revolving credit line 5,354,637 (2,454,658) 1,565,460 (7,337,271)
Increase in capital lease 14,449 - 14,449 - Issuance of debt - - -
3,367,948 Principal payments on notes payable to bank (153,776)
(155,384) (436,422) - Sale of common stock 1,310,912 - 1,310,912 -
Net cash provided by/ (used in) financing activities $6,526,222
(2,610,042) $2,454,399 $(3,969,323) NET INCREASE/ (DECREASE) IN
CASH $80 - $1,280 $(2,337,743) CASH - Beginning of Period 1,200 - -
2,337,743 CASH - End of Period $1,280 $ - $1,280 $ - DATASOURCE:
Riviera Tool Company CONTACT: Kenneth K. Rieth, CEO, or Peter C.
Canepa, CFO, of Riviera Tool Company, +1-616-698-2100; Investor
inquiries: Jeff Lambert, +1-616-233-0500, for Riviera Tool Company
Web site: http://www.rivieratool.com/
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