Riviera Tool Reports First Quarter Results
GRAND RAPIDS, Mich., Jan. 14 /PRNewswire-FirstCall/ -- Riviera Tool Co. (AMEX:RTC) today announced results for the first quarter ended November 30,
2004.
The Grand Rapids, Michigan-based designer and manufacturer of stamping die
systems reported a net loss of $464,640 or $0.12 per diluted share, on net
sales of $4.6 million for the first quarter of fiscal 2005, compared with net
income of $237,929, or $0.07 per diluted share, on net sales of $8.3 million
for the same period of fiscal 2004.
The Company's gross margin increased in the first quarter of 2005 to 11.3% as
compared to 10.2% for the first quarter of 2004. However, as a result of the
decrease in sales during the first quarter of 2005, the Company reported a loss
from operations of $65,250 as compared to an operating profit of $446,457 for
the first quarter of 2004. The decrease in sales was due to the conclusion of
two significant tooling programs for a European automaker. The Company said
they continue to realize sales related to service, repairs and engineering
changes on these programs in addition to strong new orders that were received
subsequent to November 30, 2004.
"Our sales were impacted negatively as we transitioned from these large
contracts to other smaller orders," said Kenneth K. Rieth, president and chief
executive officer of Riviera Tool. "However, we continue to see robust quoting
activity for new models and believe there is pent-up demand. Since the end of
the quarter, we have received strong new orders, which will factor into net
sales over the next two years. Based on current trends, we are optimistic we
will add revenue over the next several months and also expect to make
measurable progress toward profitability." Riviera also announced today the extension of its financing with its primary
lender. Since November 30, 2004, the Company has reduced its revolving line of
credit debt by approximately $4.0 million. The Company is actively exploring
additional financing opportunities to add further capacity for growth.
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. DATASOURCE: Riviera Tool Co.
CONTACT: Kenneth K. Rieth, CEO 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/
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