Riviera Tool (AMEX:RTC)
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GRAND RAPIDS, Mich., Dec. 1 /PRNewswire-FirstCall/ -- Riviera Tool Co. (AMEX:RTC) today reported financial results for the fourth quarter and fiscal year ended August 31, 2006.
The Grand Rapids, Mich.-based designer and manufacturer of stamping die systems reported net sales of $24.0 million for fiscal 2006, compared with net sales of $19.3 million for fiscal 2005, an increase of 24.4 percent. Driving this sales improvement was an increase in short-term follow-on orders related to the company's current backlog at the end of fiscal 2005.
Riviera reported a net loss of $1.6 million, or $0.39 per diluted share, for fiscal year ended 2006, as compared to a loss of $2.5 million, or $0.65 per share, for fiscal 2005. The Company recorded income from operations in fiscal 2006 of $278,000, as compared to a loss from operations of $498,000 for fiscal 2005.
"While we are pleased to have increased revenues in fiscal 2006, global pricing pressures have had a negative effect on overall margins in 2006 and will continue to influence how we implement our business model going forward," said Kenneth K. Rieth, president and chief executive officer of Riviera Tool. "As we enter fiscal 2007, the Company will communicate and execute a global strategy which encompasses North America, Asia and China and Eastern Europe.
"This strategy will provide Riviera with the means and opportunity to mitigate the underlying cost issues impacting the Company's ability to achieve sustainable profitability and long-term return on invested capital. Collectively, we expect these strategies will enable the Company to become more competitive from a global perspective."
For the fourth quarter ended August 31, 2006, Riviera reported net sales of $4.9 million, as compared to $5.1 million in net sales for the same period of last year. Riviera reported a net loss of $1.1 million, or $0.25 per diluted share, for the fourth quarter of fiscal 2006, as compared to a loss of $0.8 million, or $0.22 per share, for the same period in fiscal 2005.
During the fourth quarter of 2006, the Company had certain contracts which increased its loss reserves by approximately $578,000, which had a negative effect on the fourth quarter margins. Such contracts were completed during the first quarter of 2007, without incurring further losses than what was recorded in the fourth quarter.
"We made significant progress in developing and initiating our new global strategy during 2006, however, these initiatives have a rather long incubation period and we look forward to seeing the benefits of this strategy in 2007," said Rieth.
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 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
Balance Sheets
August 31
ASSETS 2005 2006
Current Assets
Cash $239,475 $161,179
Accounts receivable, net 5,232,138 10,488,082
Costs in excess of billings/(billings in
excess of costs) on contracts in process 2,844,444 (105,711)
Inventories 236,437 249,962
Prepaid expenses and other current assets 453,597 330,361
Total current assets 9,006,094 11,123,873
Property, plant and equipment, net 10,902,845 9,438,948
Perishable tooling 708,319 610,048
Other assets 599,344 370,052
Total assets $21,216,599 $21,542,921
LIABILITIES AND STOCKHOLDERS' EQUITY
Current Liabilities
Current portion of long-term debt $3,287,510 $1,757,631
Accounts payable 3,517,578 4,745,328
Accrued liabilities 661,833 533,929
Total current liabilities 7,466,921 7,036,088
Long-term and subordinated debt, net of
unamortized discount 8,870,045 11,002,033
Accrued lease expense 897,885 995,084
Other long-term liabilities - 16,386
Total liabilities 17,234,851 19,050,391
Preferred Stock
Preferred stock - no par value
$100 mandatory redemption value:
Authorized-5,000 shares, Issued
and outstanding- no shares - -
Preferred stock - no par value,
Authorized - 200,000 shares
Issued and outstanding - no shares - -
Common Stockholders' Equity
Common stock - no par value,
Authorized - 9,798,575 shares
Issued and outstanding - 3,984,874 and
4,257,601 at August 31, 2005 and 2006,
respectively 17,130,483 17,280,483
Retained deficit (13,148,735) (14,787,953)
Total common stockholders' equity 3,981,748 2,492,530
Total liabilities and stockholders' equity $21,216,599 $21,542,921
Riviera Tool Company
Statements of Operations
Year Ended August 31
2004 2005 2006
Sales $24,689,221 $19,273,505 $24,041,337
Cost of sales 30,038,654 16,981,201 21,337,441
Gross profit (loss) (5,349,433) 2,292,304 2,703,896
Selling and administrative
expenses 2,013,594 2,790,586 2,425,631
Income (loss) from operations (7,363,027) (498,282) 278,265
Other income (expense):
Interest expense (871,900) (1,643,299) (1,913,064)
Other (6,551) (15,469) (4,418)
Subordinated debt financing costs - (345,198) -
Total other expense, net (878,451) (2,003,966) (1,917,483)
Loss before income taxes (8,241,478) (2,502,248) (1,639,218)
Income taxes - - -
Net loss available for
common shares $(8,241,478) $(2,502,248) $(1,639,218)
Basic and diluted loss
per common share $(2.18) $(.65) $(.39)
Weighted-Average basic and diluted
common shares outstanding 3,774,346 3,835,750 4,257,601
Riviera Tool Company
Statements of Cash Flows
Year Ended August 31
2004 2005 2006
Operating Activities
Net loss $(8,241,478) $(2,502,248) $(1,639,218)
Adjustments to reconcile net
loss to net cash from
(used in) operating activities:
Depreciation and
amortization 1,757,862 1,673,470 1,848,014
Debt discount
amortization - 104,000 198,250
Decrease (increase) in
operating assets:
Accounts receivable (6,065,246) 7,843,147 (5,255,944)
Costs in excess of billings
on contracts in process 11,539,523 (2,175,301) 2,950,155
Inventories 10,258 1,864 (13,525)
Perishable tooling (108,982) 18,385 (159,184)
Prepaid expenses and
other current assets 58,940 (218,394) 123,236
Increase (decrease) in
operating liabilities:
Accounts payable (111,662) (1,391,315) 1,227,750
Accrued outsourced
contracts payable (5,903,930) - -
Accrued lease expense 100,204 156,991 97,199
Accrued liabilities 85,297 140,690 (127,904)
Deferred compensation 166,475 (166,474) -
Other long-term liabilities - - 16,386
Cash flows from (used in)
operating activities (6,712,739) 3,484,815 (734,785)
Investing Activities
(Increase) decrease
in other assets (298,437) 603,732 229,292
Purchases of property,
plant and equipment (1,040,319) (247,569) (126,662)
Cash flows from (used) in
investing activities (1,338,756) 356,163 102,630
Financing Activities
Proceeds from issuance of
convertible term debt - 3,200,000 -
Proceeds from issuance of
convertible revolving note - 6,534,727 -
Proceeds from/(reduction in)
overformula note - 2,000,000 (1,450,000)
Debt issue costs - (579,491) -
Net borrowings (repayments)
on revolving credit line 3,867,172 (9,849,532) 3,262,511
Proceeds from issuance of
long-term debt 435,100 - -
Principal payments on
long-term debt (606,059) (1,877,646) (1,250,783)
Proceeds from/(repayment) of
subordinated debt 3,000,000 (3,000,000) -
Increase/(decrease) of
capital lease 20,070 (7,366) (7,869)
Deferred interest 25,500 (25,500) -
Proceeds from sale of
common stock 1,310,912 2,105 -
Cash flows from (used in)
financing activities 8,052,695 (3,602,703) 553,859
Increase (decrease) in cash 1,200 238,275 (78,296)
Cash - beginning of year - 1,200 239,475
Cash - end of year $1,200 $239,475 $161,179
Interest paid $481,900 $1,414,728 $1,800,217
Conversion of term debt
to common stock $ - $ - $150,000
DATASOURCE: Riviera Tool Co.
CONTACT: Kenneth K. Rieth, CEO, or Peter C. Canepa, CFO, of Riviera Tool
Company, +1-616-698-2100
Web site: http://www.rivieratool.com/