GRAND RAPIDS, Mich., Jan. 23 /PRNewswire-FirstCall/ -- Riviera Tool Co. (AMEX:RTC) today reported financial results for the first quarter ended Nov. 30, 2006.
The Grand Rapids, Mich.-based designer and manufacturer of stamping die systems reported net sales of $4.3 million for the first quarter of fiscal 2007, compared with net sales of $6.1 million for the first quarter of fiscal 2006.
Riviera reported a net loss of $363,000, or $0.09 per diluted share, for the first quarter of fiscal 2007, as compared to a net loss of $441,000, or $0.11 per share, for the same period in fiscal 2006. Operating income increased 143 percent to $73,000 in the first quarter of fiscal 2007, as compared to operating income of $30,000 for the same period of last year.
Riviera reported the 29 percent decrease in net sales in fiscal first quarter of 2007 was a result of having lower levels of contract backlog at the end of fiscal 2006 compared to the prior fiscal year. Riviera's backlog was $3.9 million as of Nov. 30, 2006, as compared to $12.9 million for the same period of 2005, a decrease of 70 percent. The Company's backlog as of August 31, 2006 was $5.8 million as compared to $13.7 million in 2005.
"During the first quarter we saw an overall improvement in contract margins, though due to the lower sales volumes, these margins were negatively affected by the fixed costs of our operations," said Kenneth K. Rieth, president and chief executive officer of Riviera Tool. "Although we entered fiscal year 2007 with a lower backlog than the previous year, we have seen a recent increase in quoting activity, which typically indicates that potential orders will have a positive affect on our future backlog." 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
FINANCIAL STATEMENTS BALANCE SHEETS November 30, August 31,
ASSETS 2006 2006
CURRENT ASSETS Note (unaudited) (audited) Cash $509,551 $161,179
Accounts receivable, net 9,086,783 10,488,082
Costs in excess of billings/(billings
in 2006 excess of costs) on contracts
in process 2 224,222 (105,711)
Inventories 249,962 249,962
Prepaid expenses and other current
assets 319,583 330,361
Total Current Assets 10,390,101 11,123,873 Property, Plant and Equipment, net 3 9,072,246 9,438,948
Perishable Tooling 542,431 610,048
Other Assets 379,029 370,052
Total Assets $20,383,807 $21,542,921 LIABILITIES AND STOCKHOLDERS' EQUITY CURRENT LIABILITIES
Current portion of long-term debt 4 $2,884,038 $1,757,631
Accounts payable 3,801,526 4,745,328
Accrued liabilities 697,850 533,929
Total Current Liabilities 7,383,414 7,036,088 Long-Term and Subordinated Debt,
net of Unamortized Discount 4 9,791,088 11,002,033
Accrued Lease Expense 1,013,216 995,084
Other Long-Term Liabilities 16,386 16,386
Total Liabilities 18,204,104 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 - 9,785,575 shares
Issued and outstanding - 4,400,458 and
4,257,601 shares as of November 30
and August 31, 2006, respectively 17,330,483 17,280,483
Retained deficit (15,150,780) (14,787,953)
Total Stockholders' Equity 2,179,703 2,492,350
Total Liabilities and
Stockholders' Equity $20,383,807 $21,542,921 See notes to financial statements RIVIERA TOOL COMPANY
STATEMENTS OF OPERATIONS
(UNAUDITED) For The Three Months Ended
November 30
2006 2005 SALES $4,307,796 $6,063,185
COST OF SALES 3,641,172 5,467,385 GROSS PROFIT 666,624 595,800 SELLING AND ADMINISTRATIVE EXPENSES 593,180 565,577 INCOME FROM OPERATIONS 73,444 30,223 OTHER EXPENSE
Interest expense 436,368 464,918
Other (income) expense (97) 6,655
TOTAL OTHER EXPENSE 436,271 471,573 LOSS BEFORE income TAXES (362,827) (441,350) INCOME TAXES - - NET LOSS AVAILABLE FOR COMMON SHARES $(362,827) $(441,350) BASIC AND DILUTED LOSS PER COMMON SHARE $(.09) $(.11) WEIGHTED-AVERAGE BASIC AND DILUTED
COMMON SHARES OUTSTANDING 4,292,826 3,984,874 See notes to financial statements RIVIERA TOOL COMPANY
STATEMENT OF CASH FLOWS
(UNAUDITED) For the Three Months Ended
November 30,
2006 2005 OPERATING ACTIVITIES
Net loss $(362,827) $(441,350)
Adjustments to reconcile net loss to
net cash from/(used in) operating
activities:
Depreciation and amortization 395,634 419,890
Debt discount amortization 58,500 22,750
(Increase) decrease in assets:
Accounts receivable 1,401,299 (2,398,952)
Costs in excess of billings on contracts
in process (329,933) 1,128,561
Perishable tooling 67,617 4,800
Prepaid expenses and other current assets 10,778 71,414
Increase (decrease) in liabilities:
Accounts payable (943,802) 414,756
Accrued lease expense 18,132 12,513
Accrued liabilities 163,921 8,236
Net cash provided by (used in)
operating activities $479,319 $(757,382)
INVESTING ACTIVITIES
Increase (decrease) in other assets (8,977) 36,017
Purchases of property, plant and equipment (28,932) (28,105)
Net cash (used in) provided by
investing activities $(37,909) $ 7,912
FINANCING ACTIVITIES
Net borrowings (repayments) on revolving
credit line (920,053) 1,103,256
Net borrowings (repayments) on overformula 1,000,000 -
Principal payments on secured convertible
term note and note payable to bank (195,728) (313,659)
Payments on capital lease (2,048) (1,917)
Proceeds from other financing 24,791 -
Net cash (used in) provided by
financing activities $(93,038) $787,680 NET INCREASE IN CASH $348,372 $38,210 CASH - Beginning of Period 161,179 239,475
CASH - End of Period $509,551 $277,685 See notes to financial statements
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/
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