Riviera Tool Reports New Orders and Debt Reduction
GRAND RAPIDS, Mich., Feb. 28 /PRNewswire-FirstCall/ -- Riviera Tool Company
(AMEX:RTC) today reported it secured approximately $10.8 million of new orders
during the second quarter of fiscal 2005, bringing its total new orders as of
the six months ended February 28, 2005 to $16.8 million.
Riviera Tool also said it reduced its institutional debt by 45 percent to $8.2
million since the end of the fiscal 2005 first quarter. The Company said the
largest reduction came from its Revolving Working Capital Credit Line, which
was reduced 71 percent to $2.6 million.
"We're very pleased with our new orders during the first six months of fiscal
2005," said Kenneth K. Rieth, president and chief executive officer of Riviera
Tool. "At the same time, reducing our debt should provide us opportunities to
finance this new work, as well as finance additional future contracts." The Company also reported today it has secured a financing arrangement with a
large Asian automaker to provide financing for subcontracting work to low-cost
Asian die manufacturers. Riviera said this agreement will assist the Company
in being cost competitive by utilizing global sources, in addition to its
domestic partners, for tooling contracts.
"Quoting activity remains strong as we begin the third quarter of fiscal 2005,"
said Rieth. "We remain optimistic about future orders during the latter half
of calendar year 2005." 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 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. DATASOURCE: Riviera Tool Company CONTACT: Kenneth K. Rieth, CEO or Peter C. 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/
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