Riviera Tool (AMEX:RTC)
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Riviera Tool Reports Second Quarter Results
GRAND RAPIDS, Mich., April 15 /PRNewswire-FirstCall/ -- Riviera Tool Co.
(AMEX:RTC) today announced results for the second quarter ended February 28,
2005.
The Grand Rapids, Michigan-based designer and manufacturer of stamping die
systems reported a net loss of $427,836 or $0.11 per diluted share, on net
sales of $5.0 million for the second quarter of fiscal 2005, compared with net
income of $212,083, or $0.06 per diluted share, on net sales of $8.3 million
for the same period of fiscal 2004.
For the six months ended February 28, 2005, Riviera reported net sales of $9.5
million as compared to last year's net sales of $16.6 million. The Company
posted a net loss of $892,477, or $0.24 per diluted share, for the first six
months of fiscal 2005, versus net income of $450,012, or $0.13 per diluted
share, for the same period last year.
The Company's gross margin increased in the second quarter of 2005 to 16.6% as
compared to 10.1% for the second quarter of 2004. However, as a result of an
increase in Selling, General and Administrative expenses during the second
quarter of 2005, the Company reported a loss from operations of $38,368 as
compared to an operating profit of $334,784 for the second quarter of 2004.
The increase in Selling, General and Administrative expense was a result of
increases in professional services as a result of the Company's primary lender
requiring the Company to retain the services of a consulting company and the
lender's legal counsel at the Company's expense. The total of such expenses
during the second quarter of 2005 was $303,000.
The Company's gross margin increased for the six months ended February 28, 2005
to 14.1% as compared to 10.2% for the same period in 2004. However, as a
result of an increase in Selling, General and Administrative expenses during
the six months of 2005, the Company reported a loss from operations of $103,618
as compared to an operating profit of $781,240 for the same period in 2004. As
mentioned above, increases in professional services expenses during the six
months of 2005 of $353,000.
"Our margins were impacted positively as a result of the product mix during the
second quarter," said Kenneth K. Rieth, president and chief executive officer
of Riviera Tool. "However, the increase in required professional fees
negatively impacted our operating margins for the quarter. Since the end of the
first quarter, we have received excess of $10 million in new orders, which
increased our backlog by approximately 120%. Based on current trends, we
remain optimistic that the increase in revenue over the next several months
will result in progress toward operational profitability. Since the end of the
quarter, we have received new orders in excess of $1.3 million, which will
factor into net sales over the next two years. Based on current trends, we are
optimistic we will continue to add to our contract backlog."
From a cash flow perspective, the Company has continued to reduce its debt from
$14.8 million at the end of the first quarter of 2005 to $8.2 million as of the
end of the second quarter of 2005, a reduction of 55%. As compared to fiscal
year ended August 31, 2004, the Company has experienced a reduction of 48%,
from $15.8 million to $8.2 million.
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
factors.
RIVIERA TOOL COMPANY
FINANCIAL STATEMENTS
BALANCE SHEETS
ASSETS February 28, August 31,
2005 2004
CURRENT ASSETS Note (unaudited) (audited)
Cash $209,202 $1,200
Accounts receivable 2,928,288 13,075,285
Costs in excess of billings
on contracts in process 2 2,571,817 669,143
Inventories 238,301 238,301
Prepaid expenses and other
current assets 273,688 235,203
Total current assets 6,221,296 14,219,132
PROPERTY, PLANT AND EQUIPMENT, NET 3 11,720,433 12,328,746
PERISHABLE TOOLING 757,744 726,704
OTHER ASSETS 544,181 623,635
Total assets $19,243,654 $27,898,217
LIABILITIES AND STOCKHOLDERS'
EQUITY
CURRENT LIABILITIES
Current portion of long-term debt 4 $8,201,391 $15,742,669
Accounts payable 4,485,557 4,908,893
Accrued liabilities 756,979 521,193
Total current
liabilities 13,443,927 21,172,755
LONG-TERM DEBT 4 8,834 12,703
ACCRUED LEASE EXPENSE 787,478 740,894
DEFERRED COMPENSATION - 166,474
DEFERRED INTEREST 4 116,000 25,500
Total liabilities 14,356,239 22,118,326
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 shares
As of February 28, 2005
and August 31, 2004 16,426,378 16,426,378
Retained deficit (11,538,963) (10,646,487)
Total stockholders'
equity 4,887,415 5,779,891
Total liabilities and stockholders'
equity $19,243,654 $27,898,217
RIVIERA TOOL COMPANY
STATEMENTS OF OPERATIONS
(UNAUDITED)
For The Three Months For The Six Months
Ended Ended
Feb. 28, Feb. 29, Feb. 28, Feb. 29,
2005 2004 2005 2004
SALES $4,981,009 $8,292,900 $9,533,560 $16,603,660
COST OF SALES 4,151,887 7,452,464 8,190,347 14,913,281
GROSS PROFIT 829,122 840,436 1,343,213 1,690,379
SELLING, GENERAL AND
ADMINISTRATIVE EXPENSES 867,490 505,652 1,446,831 909,139
INCOME/(LOSS) FROM
OPERATIONS (38,368) 334,784 (103,618) 781,240
TOTAL INTEREST EXPENSE 389,468 122,701 788,859 331,228
INCOME/(LOSS) BEFORE
INCOME TAXES (427,836) 212,083 (892,477) 450,012
INCOME TAXES - - - -
NET INCOME/(LOSS)
AVAILABLE FOR
COMMON SHARES $(427,836) $212,083 $(892,477) $450,012
BASIC AND DILUTED
INCOME/(LOSS)
PER COMMON SHARE $(.11) $.06 $(.24) $.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 Six Months
Ended Ended
Feb. 28, Feb. 29, Feb. 28, Feb. 29,
2005 2004 2005 2004
CASH FLOWS FROM OPERATING
ACTIVITIES
Net income/(loss) $(427,836) $212,083 $(892,477) $450,012
Adjustments to reconcile
net income/(loss) to
net cash from operating
activities:
Depreciation and
amortization 427,701 421,599 855,402 843,198
(Increase) decrease
in assets:
Accounts receivable 6,429,427 (1,444,542) 10,146,997 2,119,551
Costs in excess of
billings on
contracts in
process (1,096,106) (180,343) (1,902,674) 718,655
Perishable tooling 23,110 560 (31,040) (5,374)
Prepaid expenses
and other current
assets (66,222) (236,959) (38,485) (213,563)
Increase (decrease)
in liabilities:
Accounts payable 569,558 1,209,148 (423,336) (538,943)
Accrued outsourced
contracts payable - (182,025) - 644,386
Accrued lease expense 23,292 25,050 46,584 50,100
Accrued liabilities 116,523 86,476 235,786 318,686
Deferred compensation (166,474) - (166,474) -
Net cash provided by/(used
in) operating
activities $5,832,973 $(88,953) $7,830,283 $4,386,708
CASH FLOWS FROM INVESTING
ACTIVITIES
Decrease/(increase) in
other assets 100,000 - 79,454 (22,462)
Additions to property,
plant and equipment (16,806) (166,429) (247,089) (291,223)
Net cash provided by/(used
in) investing activities $83,194 $(166,429) $(167,635) $(313,685)
CASH FLOWS FROM FINANCING
ACTIVITIES
Net borrowings (repayments)
on revolving credit
line (6,505,958) 380,876 (7,253,654) (3,789,177)
Deferred interest 44,588 - 90,500 -
Principal payments on
notes payable to bank (129,024) (125,494) (291,492) (282,646)
Net cash provided by/(used
in) financing
activities $(6,590,394) 255,382 $(7,454,646) $(4,071,823)
NET INCREASE/(DECREASE)
IN CASH $(674,227) - $208,002 $1,200
CASH - Beginning of
Period 883,429 1,200 1,200 -
CASH - End of Period $209,202 1,200 $209,202 $1,200
DATASOURCE: Riviera Tool Company
CONTACT: Kenneth K. Rieth, CEO, or Peter Canepa, CFO, of Riviera Tool
Company, +1-616-698-2100; or Investor inquiries: Jeff Lambert,
+1-616-233-0500, for Riviera Tool Company
Web site: http://www.rivieratool.com/