Riviera Tool Company Reports Second-Quarter Results

Apr 16, 2001, 01:00 ET from Riviera Tool Company

    GRAND RAPIDS, Mich., April 16 /PRNewswire/ -- Riviera Tool Company
 (Amex:   RTC) today reported its results for the second quarter of fiscal 2001.
     The Grand Rapids, Mich.-based designer and manufacturer of stamping die
 systems reported a net loss of $1.2 million, or $0.37 per share, on net sales
 of $2.4 million for the quarter ended Feb. 28, 2001, compared with a net loss
 of $663,687, or $0.20 per share, on sales of $5.2 million for the same period
 a year ago.  For the six months ended February 28, 2001 the Company reported a
 net loss of $1.6 million, or $0.47 per share, on net sales of $7.0 million,
 compared with a net loss of $309,471, or $.09 per share, on sales of $11.0
 million for the same period a year ago.
     "We are in the same position as most other manufacturers in our industry
 as we wait for the automakers to release new contracts," said Kenneth K.
 Rieth, president and chief executive officer of Riviera Tool.  "With the
 current softness in the market, automakers have been reluctant to bid out new
 models -- even though that's precisely what drives consumer sales.  This
 interim waiting period has made it difficult for all tooling manufacturers,
 given the capital-intensive nature of our business.
     "Yet we have already begun to see signs of increased order activity.
 During the second quarter, we booked $6.2 million in new contracts.  We
 continue to bid on new programs, yet we must be selective to ensure that any
 contracts we secure will contribute positively to our margins."
     Riviera continued with its cost-containment program, which was initiated
 during the first quarter to reduce expenses.  These measures included salary
 reductions for white- and blue-collar workers as well as temporary lay-offs.
     During the second quarter, gross profit as a percentage of sales
 decreased, due largely to the decrease in revenue.  Although spending on
 direct labor, engineering and overhead decreased, these expenses increased as
 a percentage of sales because of the lower revenues.
     Selling and administrative expenses decreased by 58.7 percent during the
 quarter, from $778,445 in the second quarter of fiscal 2000 to $321,445 in the
 just-completed quarter.  The Company attributed the improvement to lower
 expenses for salaries, public company costs and legal fees.
     "Given the level of quoting activity since the beginning of fiscal 2001,
 we know the work is out there," Rieth said.  "The continued slowness in
 releasing this work, however, has frustrated all tooling suppliers.  We will
 continue to work aggressively to contain our costs during this period."
     Riviera Tool Co. (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
                              FINANCIAL STATEMENTS
 
                                 BALANCE SHEETS
 
                  ASSETS                      February 28,        August 31,
                                                2001                 2000
     CURRENT ASSETS                          (unaudited)          (audited)
      Cash                                  $    21,766        $    113,699
      Accounts receivable                     1,956,823           7,052,169
      Costs and estimated gross profit in
       excess of billings on contracts
       in process                             8,916,759           8,564,651
      Inventories                               306,675             306,675
      Federal income tax refundable                   -             673,897
      Prepaid expenses and other current
       assets                                   120,783             170,170
         Total current assets                11,322,806          16,881,261
 
     PROPERTY, PLANT AND EQUIPMENT, NET      16,957,275          17,445,289
     PERISHABLE TOOLING                         568,333             538,743
     OTHER ASSETS                               210,770             210,770
 
         Total assets                   $    29,059,184     $    35,076,063
 
                  LIABILITIES AND
                  STOCKHOLDERS' EQUITY
     CURRENT LIABILITIES
      Current portion of long-term debt $    1,983,964      $    1,983,964
      Accounts payable                         576,742           1,410,834
      Accrued liabilities                      444,995             434,689
         Total Current liabilities           3,005,701           3,829,487
 
     LONG-TERM DEBT                          7,495,434          10,303,197
     DEFERRED TAX LIABILITY                    726,590           1,538,000
     ACCRUED LEASE EXPENSE                     690,926             689,758
         Total liabilities                  11,918,651          16,360,442
 
     PREFERRED STOCK - no par value,
      $100 mandatory redemption value:
       Authorized - 5,000 shares
       Issued and outstanding - None                 -                   -
 
     STOCKHOLDERS' EQUITY:
      Preferred Stock - no par value,
       Authorized - 200,000 shares
       Issued and outstanding - None                 -                   -
      Common stock - No par value:
       Authorized - 9,785,575 shares
       Issued and outstanding - 3,379,609 shares at
       February 28, 2001 and
        August 31, 2000                     15,115,466          15,115,466
      Retained earnings                      2,025,067           3,600,155
         Total stockholders' equity         17,140,533          18,715,621
         Total liabilities and
          stockholders' equity         $    29,059,184     $    35,076,063
 
 
 
                              RIVIERA TOOL COMPANY
                            STATEMENTS OF OPERATIONS
                                  (UNAUDITED)
 
 
                       For The Three Months Ended    For The Six Months Ended
                      February 28,   February 29,   February 28,   February 29,
                          2001           2000           2001           2000
 
     SALES            $ 2,386,136    $ 5,175,600    $ 6,978,033   $ 11,030,621
     COST OF SALES      3,732,166      5,148,571      8,058,590      9,806,604
 
       GROSS LOSS      (1,346,030)        27,029     (1,080,557)     1,224,017
 
     SELLING AND ADMINISTRATIVE
      EXPENSES            321,445        778,445        849,748      1,232,934
 
       LOSS FROM
        OPERATIONS     (1,667,475)      (751,416)    (1,930,305)        (8,917)
 
     OTHER INCOME (EXPENSE)
      Interest expense   (215,407)      (203,479)      (456,096)      (408,086)
      Other expense            83              -            (98)             -
      Gain (Loss) on asset
       disposals                -        (50,691)             -        (51,893)
         TOTAL OTHER
          EXPENSE - NET  (215,324)      (254,170)      (456,194)      (457,979)
 
     LOSS BEFORE TAXES
      ON INCOME        (1,882,799)    (1,005,586)    (2,386,499)      (468,896)
 
     INCOME TAX CREDIT   (640,152)      (341,899)      (811,410)      (159,425)
 
     NET LOSS AVAILABLE FOR COMMON
      SHARES         $ (1,242,647)    $ (663,687)  $ (1,575,089)    $ (309,471)
 
     BASIC AND DILUTED LOSS
      PER COMMON SHARE     $ (.37)        $ (.20)        $ (.47)        $ (.09)
 
     BASIC AND DILUTED
      COMMON SHARES
      OUTSTANDING       3,379,609      3,379,609      3,379,609      3,379,609
 
 
 
                              RIVIERA TOOL COMPANY
                            STATEMENTS OF CASH FLOWS
                                  (UNAUDITED)
 
                                               For the Six Months Ended
                                       February 28, 2001     February 29, 2000
 
     CASH FLOWS FROM OPERATING ACTIVITIES
      Net loss                            $ (1,575,089)         $ (309,471)
      Adjustments to reconcile net
       income (loss) to net cash
       from operating activities:
        Depreciation and amortization          952,424             945,854
        Loss on disposal of assets                   -              50,940
        Deferred taxes                        (811,410)           (548,597)
       (Increase) decrease in assets:
          Accounts receivable                5,095,346            (435,468)
          Federal income tax receivable        673,897
          Costs and estimated gross profit in
          excess of billings on contracts in
          process                             (352,108)            596,162
          Inventory                                  -              20,000
          Perishable tooling                   (29,590)            (30,392)
          Prepaid expenses and other
           current assets                       49,387            (162,378)
          Increase (decrease) in liabilities:
           Accounts payable                   (834,093)           (217,058)
           Accrued lease expense                 1,168               9,343
           Accrued liabilities                 (10,306)           (411,821)
 
     Net Cash provided by (used in)
      operating activities                 $ 3,180,238          $ (492,886)
 
     CASH FLOWS FROM INVESTING ACTIVITIES
      Increase in other assets                       -             (75,000)
      Additions to property, plant and
       equipment                              (464,408)           (869,083)
 
     Net cash used in investing activity    $ (464,408)         $ (944,083)
 
     CASH FLOWS FROM FINANCING ACTIVITIES
      Proceeds/(payments) from revolving
       credit line                          (1,854,722)          2,229,300
      Principal payments on long-term debt    (953,041)           (897,432)
      Net cash (used in) provided by
       financing activities               $ (2,807,763)        $ 1,331,868
 
     NET DECREASE IN CASH                    $ (91,933)         $ (105,001)
 
     CASH - Beginning of Period                113,699             113,183
 
     CASH - End of Period                    $  21,766            $  8,082
 
 

SOURCE Riviera Tool Company
    GRAND RAPIDS, Mich., April 16 /PRNewswire/ -- Riviera Tool Company
 (Amex:   RTC) today reported its results for the second quarter of fiscal 2001.
     The Grand Rapids, Mich.-based designer and manufacturer of stamping die
 systems reported a net loss of $1.2 million, or $0.37 per share, on net sales
 of $2.4 million for the quarter ended Feb. 28, 2001, compared with a net loss
 of $663,687, or $0.20 per share, on sales of $5.2 million for the same period
 a year ago.  For the six months ended February 28, 2001 the Company reported a
 net loss of $1.6 million, or $0.47 per share, on net sales of $7.0 million,
 compared with a net loss of $309,471, or $.09 per share, on sales of $11.0
 million for the same period a year ago.
     "We are in the same position as most other manufacturers in our industry
 as we wait for the automakers to release new contracts," said Kenneth K.
 Rieth, president and chief executive officer of Riviera Tool.  "With the
 current softness in the market, automakers have been reluctant to bid out new
 models -- even though that's precisely what drives consumer sales.  This
 interim waiting period has made it difficult for all tooling manufacturers,
 given the capital-intensive nature of our business.
     "Yet we have already begun to see signs of increased order activity.
 During the second quarter, we booked $6.2 million in new contracts.  We
 continue to bid on new programs, yet we must be selective to ensure that any
 contracts we secure will contribute positively to our margins."
     Riviera continued with its cost-containment program, which was initiated
 during the first quarter to reduce expenses.  These measures included salary
 reductions for white- and blue-collar workers as well as temporary lay-offs.
     During the second quarter, gross profit as a percentage of sales
 decreased, due largely to the decrease in revenue.  Although spending on
 direct labor, engineering and overhead decreased, these expenses increased as
 a percentage of sales because of the lower revenues.
     Selling and administrative expenses decreased by 58.7 percent during the
 quarter, from $778,445 in the second quarter of fiscal 2000 to $321,445 in the
 just-completed quarter.  The Company attributed the improvement to lower
 expenses for salaries, public company costs and legal fees.
     "Given the level of quoting activity since the beginning of fiscal 2001,
 we know the work is out there," Rieth said.  "The continued slowness in
 releasing this work, however, has frustrated all tooling suppliers.  We will
 continue to work aggressively to contain our costs during this period."
     Riviera Tool Co. (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
                              FINANCIAL STATEMENTS
 
                                 BALANCE SHEETS
 
                  ASSETS                      February 28,        August 31,
                                                2001                 2000
     CURRENT ASSETS                          (unaudited)          (audited)
      Cash                                  $    21,766        $    113,699
      Accounts receivable                     1,956,823           7,052,169
      Costs and estimated gross profit in
       excess of billings on contracts
       in process                             8,916,759           8,564,651
      Inventories                               306,675             306,675
      Federal income tax refundable                   -             673,897
      Prepaid expenses and other current
       assets                                   120,783             170,170
         Total current assets                11,322,806          16,881,261
 
     PROPERTY, PLANT AND EQUIPMENT, NET      16,957,275          17,445,289
     PERISHABLE TOOLING                         568,333             538,743
     OTHER ASSETS                               210,770             210,770
 
         Total assets                   $    29,059,184     $    35,076,063
 
                  LIABILITIES AND
                  STOCKHOLDERS' EQUITY
     CURRENT LIABILITIES
      Current portion of long-term debt $    1,983,964      $    1,983,964
      Accounts payable                         576,742           1,410,834
      Accrued liabilities                      444,995             434,689
         Total Current liabilities           3,005,701           3,829,487
 
     LONG-TERM DEBT                          7,495,434          10,303,197
     DEFERRED TAX LIABILITY                    726,590           1,538,000
     ACCRUED LEASE EXPENSE                     690,926             689,758
         Total liabilities                  11,918,651          16,360,442
 
     PREFERRED STOCK - no par value,
      $100 mandatory redemption value:
       Authorized - 5,000 shares
       Issued and outstanding - None                 -                   -
 
     STOCKHOLDERS' EQUITY:
      Preferred Stock - no par value,
       Authorized - 200,000 shares
       Issued and outstanding - None                 -                   -
      Common stock - No par value:
       Authorized - 9,785,575 shares
       Issued and outstanding - 3,379,609 shares at
       February 28, 2001 and
        August 31, 2000                     15,115,466          15,115,466
      Retained earnings                      2,025,067           3,600,155
         Total stockholders' equity         17,140,533          18,715,621
         Total liabilities and
          stockholders' equity         $    29,059,184     $    35,076,063
 
 
 
                              RIVIERA TOOL COMPANY
                            STATEMENTS OF OPERATIONS
                                  (UNAUDITED)
 
 
                       For The Three Months Ended    For The Six Months Ended
                      February 28,   February 29,   February 28,   February 29,
                          2001           2000           2001           2000
 
     SALES            $ 2,386,136    $ 5,175,600    $ 6,978,033   $ 11,030,621
     COST OF SALES      3,732,166      5,148,571      8,058,590      9,806,604
 
       GROSS LOSS      (1,346,030)        27,029     (1,080,557)     1,224,017
 
     SELLING AND ADMINISTRATIVE
      EXPENSES            321,445        778,445        849,748      1,232,934
 
       LOSS FROM
        OPERATIONS     (1,667,475)      (751,416)    (1,930,305)        (8,917)
 
     OTHER INCOME (EXPENSE)
      Interest expense   (215,407)      (203,479)      (456,096)      (408,086)
      Other expense            83              -            (98)             -
      Gain (Loss) on asset
       disposals                -        (50,691)             -        (51,893)
         TOTAL OTHER
          EXPENSE - NET  (215,324)      (254,170)      (456,194)      (457,979)
 
     LOSS BEFORE TAXES
      ON INCOME        (1,882,799)    (1,005,586)    (2,386,499)      (468,896)
 
     INCOME TAX CREDIT   (640,152)      (341,899)      (811,410)      (159,425)
 
     NET LOSS AVAILABLE FOR COMMON
      SHARES         $ (1,242,647)    $ (663,687)  $ (1,575,089)    $ (309,471)
 
     BASIC AND DILUTED LOSS
      PER COMMON SHARE     $ (.37)        $ (.20)        $ (.47)        $ (.09)
 
     BASIC AND DILUTED
      COMMON SHARES
      OUTSTANDING       3,379,609      3,379,609      3,379,609      3,379,609
 
 
 
                              RIVIERA TOOL COMPANY
                            STATEMENTS OF CASH FLOWS
                                  (UNAUDITED)
 
                                               For the Six Months Ended
                                       February 28, 2001     February 29, 2000
 
     CASH FLOWS FROM OPERATING ACTIVITIES
      Net loss                            $ (1,575,089)         $ (309,471)
      Adjustments to reconcile net
       income (loss) to net cash
       from operating activities:
        Depreciation and amortization          952,424             945,854
        Loss on disposal of assets                   -              50,940
        Deferred taxes                        (811,410)           (548,597)
       (Increase) decrease in assets:
          Accounts receivable                5,095,346            (435,468)
          Federal income tax receivable        673,897
          Costs and estimated gross profit in
          excess of billings on contracts in
          process                             (352,108)            596,162
          Inventory                                  -              20,000
          Perishable tooling                   (29,590)            (30,392)
          Prepaid expenses and other
           current assets                       49,387            (162,378)
          Increase (decrease) in liabilities:
           Accounts payable                   (834,093)           (217,058)
           Accrued lease expense                 1,168               9,343
           Accrued liabilities                 (10,306)           (411,821)
 
     Net Cash provided by (used in)
      operating activities                 $ 3,180,238          $ (492,886)
 
     CASH FLOWS FROM INVESTING ACTIVITIES
      Increase in other assets                       -             (75,000)
      Additions to property, plant and
       equipment                              (464,408)           (869,083)
 
     Net cash used in investing activity    $ (464,408)         $ (944,083)
 
     CASH FLOWS FROM FINANCING ACTIVITIES
      Proceeds/(payments) from revolving
       credit line                          (1,854,722)          2,229,300
      Principal payments on long-term debt    (953,041)           (897,432)
      Net cash (used in) provided by
       financing activities               $ (2,807,763)        $ 1,331,868
 
     NET DECREASE IN CASH                    $ (91,933)         $ (105,001)
 
     CASH - Beginning of Period                113,699             113,183
 
     CASH - End of Period                    $  21,766            $  8,082
 
 SOURCE  Riviera Tool Company