<PAGE> 1
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 10-Q
QUARTERLY REPORT UNDER SECTION 13 OR 15(d) OF
THE SECURITIES EXCHANGE ACT OF 1934
For the Quarter ended June 30, 1997 Commission File Number 0-1227
-------------
CHICAGO RIVET & MACHINE CO.
- --------------------------------------------------------------------------------
(Exact name of registrant as specified in its charter)
ILLINOIS 36-0904920
(State or other jurisdiction of (I.R.S. Employer Identification No.)
incorporation or organization)
P. O. Box 3061
90l Frontenac Road
Naperville, Illinois 60566
- -------------------------------- ------------------------
(Address of principal executive office) (Zip Code)
Registrant's telephone number, including area code (630) 357-8500
----------------------
Indicate by check mark whether the registrant (1) has filed all reports
required to be filed by Section 13 or 15(d) of the Securities Exchange Act of
1934 during the preceding 12 months (or for such shorter period that the
registrant was required to file such reports), and (2) has been subject to such
filing requirements for the past 90 days.
Yes X No
----------- ------------
Indicate the number of shares outstanding of each of the issuer's classes of
common stock, as of the latest practicable date.
Class Outstanding at June 30, 1997
-------------- ----------------------------
COMMON STOCK, $2.00 PAR VALUE 585,448 SHARES
------------------
DOCUMENTS INCORPORATED BY REFERENCE
-----------------------------------
(1) Portions of the Company's Interim Report to Shareholders for the Quarter
ended June 30, 1997 are incorporated by reference in Part I of this Report.
<PAGE> 2
CHICAGO RIVET & MACHINE CO.
---------------------------
INDEX
-----
PART I. FINANCIAL INFORMATION Page No.
--------
Consolidated Balance Sheets at June 30, 1997 2-3
and December 31, 1996.
Consolidated Statements of Operations for the Three and Six
Months Ended June 30, 1997 and 1996 . 4
Consolidated Statements of Retained Earnings for the
Six Months Ended June 30, 1997 and 1996. 5
Consolidated Statements of Cash Flows for the Six
Months Ended June 30, 1997 and 1996. 6
Notes to the Consolidated Financial Statements 7-8
Management's Discussion and Analysis of Financial
Condition and Results of Operations 9-10
PART II. OTHER INFORMATION 11-17
<PAGE> 3
CHICAGO RIVET & MACHINE CO.
Consolidated Balance Sheets
June 30, 1997 and December 31, 1996
Assets
June 30, December 31,
1997 1996
------------ -------------
(unaudited)
Current Assets:
Cash and cash equivalents $ 4,569,909 $ 3,215,688
Certificates of deposit 1,975,403 705,407
U. S. Government securities --- 396,815
Accounts receivable - net of allowances 5,411,833 5,028,885
Inventories:
Raw materials 1,367,461 1,715,685
Work in process 1,795,214 2,318,535
Finished goods 2,623,390 2,864,383
------------ ------------
Total inventories 5,786,065 6,898,603
------------ ------------
Deferred income taxes (Note 4) 809,848 813,000
Other current assets 322,928 271,973
------------ ------------
Total Current Assets 18,875,986 17,330,371
------------ ------------
Goodwill, net of amortization --- 8,348
------------ ------------
Property, Plant and Equipment
At Cost:
Land and improvements 982,635 982,635
Buildings and improvements 5,464,355 5,464,355
Production equipment, leased
machines and other 21,512,530 21,221,316
------------ ------------
27,959,520 27,668,306
Less - Accumulated Depreciation 14,300,200 13,680,473
------------ ------------
Net Property, Plant and Equipment 13,659,320 13,987,833
------------ ------------
Total Assets $ 32,535,306 $ 31,326,552
============ ============
See Notes to the Consolidated Financial Statements
-2-
<PAGE> 4
CHICAGO RIVET & MACHINE CO.
Consolidated Balance Sheets
June 30, 1997 and December 31, 1996
Liabilities and Shareholders' Equity
June 30, December 31,
1997 1996
------------ ------------
(unaudited)
Current Liabilities:
Accounts payable $ 1,549,830 $ 1,257,704
Contributions due profit - sharing
and pension plans 524,977 522,278
Wages and salaries 1,017,883 754,791
Other accrued expenses (Note 5) 675,021 435,019
Unearned lease revenue 63,508 53,411
Current portion of note payable 1,800,000 1,800,000
Accrued interest expense 45,382 47,250
Federal and state income taxes 467,164 419,339
------------ ------------
Total Current Liabilities 6,143,765 5,289,792
Note payable 6,300,000 7,200,000
Deferred income taxes (Note 4) 1,170,359 1,060,000
------------ ------------
Total Liabilities 13,614,124 13,549,792
------------ ------------
Shareholders' Equity:
Preferred stock, no par value:
authorized 500,000 shares -
none outstanding ---- ----
Common stock, $2.00 par value: authorized
2,000,000 shares - issued and outstanding
585,448 and 585,748, respectively 1,170,896 1,171,496
Additional paid - in capital 460,016 460,252
Retained earnings 17,290,270 16,145,012
------------ ------------
Total Shareholders' Equity 18,921,182 17,776,760
------------ ------------
Commitments and Contingencies (Note 3) ---- ----
------------ ------------
Total Liabilities and Shareholders' Equity $ 32,535,306 $ 31,326,552
============ ============
See Notes to the Consolidated Financial Statements
-3-
<PAGE> 5
CHICAGO RIVET & MACHINE CO.
Consolidated Statements of Operations
For the Three and Six Months Ended June 30, 1997 and 1996
(unaudited)
<TABLE>
<CAPTION>
Three Months Ended Six Months Ended
-------------------------- ------------------------
June 30, June 30,
1997 1996 1997 1996
---------- ---------- ----------- --------
<S> <C> <C> <C> <C>
Net sales $ 11,471,977 $ 6,055,187 $ 23,275,569 $ 11,273,509
Lease revenue 92,825 107,525 187,878 212,835
------------ ------------ ------------ ------------
$ 11,564,802 $ 6,162,712 $ 23,463,447 $ 11,486,344
Cost of goods sold and costs
related to lease revenue 7,814,467 4,254,019 16,604,608 7,858,995
------------ ------------ ------------ ------------
Gross profit 3,750,335 1,908,693 6,858,839 3,627,349
Shipping, selling and
administrative expenses 1,889,227 1,254,577 3,591,340 2,430,936
Profit sharing and pension
expenses 200,000 47,500 340,000 105,000
------------ ------------ ------------ ------------
1,661,108 606,616 2,927,499 1,091,413
Other income and expenses:
Interest income from
U.S. Government securities
and certificates of deposit 46,829 89,049 81,598 187,323
Interest expense (139,236) --- (274,374) ---
Gain from sale of leased
machines and other equipment 140,959 10,360 142,459 250
Amortization expense (2,099) (6,249) (8,348) (12,498)
Other income, net of other expense 3,863 2,469 8,573 7,368
------------ ------------ ------------ ------------
Income before income taxes 1,711,424 702,245 2,877,407 1,273,856
Provision for income taxes 641,000 269,018 1,075,000 490,000
------------ ------------ ------------ ------------
Net income $ 1,070,424 $ 433,227 $ 1,802,407 $ 783,856
============ ============ ============ ============
Average common shares outstanding 585,722 585,748 585,735 585,748
============ ============ ============ ============
Per share data:
Net income per share $ 1.83 $ .74 $ 3.08 $ 1.34
============ ============ ============ ============
Cash dividends declared per share $ .30 $ .30 $ 1.10 $ 1.20
============ ============ ============ ============
</TABLE>
See Notes to the Consolidated Financial Statements
-4-
<PAGE> 6
CHICAGO RIVET & MACHINE CO.
Consolidated Statements of Retained Earnings
For the Six Months Ended June 30, 1997 and 1996
(unaudited)
June 30,
------------------------------
1997 1996
------------ -------------
Retained earnings at beginning
of period $ 16,145,012 $ 15,251,361
Net income for the six months ended 1,802,407 783,856
Treasury stock retired at cost (12,827) ---
Cash dividends declared in the period -
$1.10 per share in 1997 and $1.20 per
share in 1996. (644,322) (702,898)
------------ ------------
Retained earnings at end of period $ 17,290,270 $ 15,332,319
============ ============
See Notes to the Consolidated Financial Statements
-5-
<PAGE> 7
CHICAGO RIVET & MACHINE CO.
Consolidated Statements of Cash Flows
For the Six Months Ended June 30, 1997 and 1996
(unaudited)
<TABLE>
<CAPTION>
June 30,
------------------------------------
1997 1996
------------- ------------
<S> <C> <C>
Cash flows from operating activities:
Net income $ 1,802,407 $ 783,856
Adjustments to reconcile net income to net cash
provided by operating activities:
Depreciation and amortization 680,699 327,026
Net gain on the sale of properties (142,460) (250)
Deferred income taxes 113,511 (7,930)
Changes in current assets and current liabilities:
Accounts receivable, net (382,948) (948,988)
Inventories 1,112,538 570,232
Accounts payable 292,126 (316,498)
Other accrued expenses 240,002 218,104
Accrued wages and salaries 263,092 39,740
Accrued profit sharing 2,699 (267,460)
Taxes payable 47,825 (300,210)
Other, net (42,722) (176,956)
------------ ------------
Net cash provided (used) by operating activities 3,986,769 (79,334)
------------ ------------
Cash flows from investing activities:
Capital expenditures (499,898) (88,244)
Net proceeds from the sale of properties 298,521 16,414
Proceeds from held-to-maturity securities 1,836,088 491,549
Purchases of held-to-maturity securities (2,709,272) (294,092)
Proceeds from available-for-sale securities --- 5,895,745
Purchases of available-for-sale securities --- (1,594,381)
------------ ------------
Net cash provided (used) by investing activities (1,074,561) 4,426,991
------------ ------------
Cash flows from financing activities
Payments under term loan agreement (900,000) ---
Cash dividends (644,322) (702,898)
Purchase of Treasury Stock (13,665) ---
------------ ------------
Net cash used by financing activities (1,557,987) (702,898)
------------ ------------
Net increase in cash and cash equivalents 1,354,221 3,644,759
Cash and cash equivalents at beginning of period 3,215,688 1,349,093
------------ ------------
Cash and cash equivalents at end of period $ 4,569,909 $ 4,993,852
============ ============
Cash paid during the period for:
Income taxes $ 913,664 $ 798,158
Interest $ 274,374 $ ---
</TABLE>
See Notes to the Consolidated Financial Statements
-6-
<PAGE> 8
CHICAGO RIVET & MACHINE CO.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
(Unaudited)
1. In the opinion of the Company, the accompanying unaudited financial
statements contain all adjustments necessary to present fairly the
financial position of the Company as of June 30, 1997 and December 31,
1996 and the results of operations and changes in cash flow for the
indicated periods.
The Company uses estimated gross profit rates to determine the cost of
goods sold during interim periods. Actual results could differ from
those estimates and will be adjusted, as necessary, following the
Company's annual physical inventory in the fourth quarter.
The preparation of financial statements in conformity with generally
accepted accounting principles requires management to make estimates and
assumptions that affect the reported amounts of assets and liabilities
and disclosure of contingent assets and liabilities at the date of the
financial statements and the reported amounts of revenues and expenses
during the reporting period. Actual results could differ from those
estimates.
2. The results of operations for the three month period ending June 30, 1997
are not necessarily indicative of the results to be expected for the
year.
3. The Company is, from time to time, involved in litigation, including
environmental claims, in the normal course of business. With regard to
environmental claims the Company has been named by state and/or federal
government agencies as a "potentially responsible party" with respect to
certain waste disposal sites. As a potentially responsible party, the
Company may be considered jointly and severally liable, along with other
potentially responsible parties, for the cost of remediation of these
waste sites. The actual cost of remediation is presently unknown;
however, estimates currently available suggest that the cost of
remediation at these sites will be between $47 million and $85 million.
Despite the joint and several nature of the liability, these proceedings
are frequently resolved on the basis of the quantity and type of waste
disposed by the parties. The actual amount of liability for the Company
is unknown due to disagreement concerning the allocation of
responsibility, uncertainties regarding the amount of contribution that
will be available from other parties and uncertainties related to
insurance coverage. After investigation of the quantities and type of
waste disposed at these sites, it is management's opinion that any
liability will not be material to the Company's financial condition.
Nevertheless, it is unlikely that the Company will not incur significant
costs associated with these proceedings and accordingly the Company has
recorded a liability of approximately $250,000 related to these matters.
The adequacy of this reserve will be reviewed periodically as more
definitive cost information becomes available.
-7-
<PAGE> 9
CHICAGO RIVET & MACHINE CO.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (CON'T.)
(Unaudited)
4. At June 30, 1997 significant deferred tax liabilities and assets were
comprised of the following:
Depreciation $(1,199,433)
-----------
(1,199,433)
Environmental accruals 99,778
Inventory valuations 343,194
Accrued vacation 167,424
Doubtful accounts 75,622
Accrued pension 73,991
Unearned rental revenue 25,403
Other, net 53,510
-----------
838,922
-----------
$ (360,511)
-----------
5. Other Accrued Expenses - accrued expenses consist of the following:
June 30, 1997 December 31, 1996
------------- -----------------
Environmental costs $ 249,444 $ 250,015
Property taxes 218,233 95,037
Payroll taxes 84,911 35,543
All other items 122,433 54,424
------------- -----------------
$ 675,021 $ 435,019
============= =================
6. The Company extends credit primarily on the basis of 30 day terms to
various companies doing business primarily in the automotive and
appliance industries. The Company has a concentration of credit risk
primarily within the automotive industry and in the Midwestern United
States.
-8-
<PAGE> 10
CHICAGO RIVET & MACHINE CO.
MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL
CONDITION AND RESULTS OF OPERATIONS
Net sales and lease revenues totaled $11,564,802 during the second quarter
of 1997, which compares favorably with net sales and lease revenues of
$6,162,712 recorded during the second quarter of 1996. On a year to date
basis, 1997 revenues total $23,463,447 for the first six months, compared with
$11,486,344 recorded in the first half of 1996. As previously reported, the
Company acquired the assets of H & L Tool Company, Inc. of Madison Heights, MI
("H & L Tool") in December 1996. All results reported for 1997 reflect the
operation of H & L Tool. The additional revenues generated by H & L Tool
continue to account for the vast majority of the change in revenue from the
corresponding year earlier period.
Net income for the second quarter of 1997 increased to $1,070,424 or $1.83
per share on 585,722 average shares outstanding during the second quarter of
1997. This compares favorably with the year earlier period when earnings
amounted to $433,227 or $.74 per share on 585,748 average shares outstanding.
For the first half of 1997, net income increased to $1,802,407 or $3.08 per
share on 585,735 average shares outstanding, compared with the first half of
1996 when net income amounted to $783,856 or $1.34 per share on 585,748 average
shares outstanding. Once again, the additional revenues associated with H & L
Tool were the largest single factor contributing to the increase in second
quarter income. Other positive factors affecting second quarter earnings
include a gain of approximately $.20 per share related to adjustments to
certain cost of sales estimates and a gain of approximately $.15 per share from
the sale of certain idle assets. Results for the second quarter were
substantially better than anticipated, in part due to a few relatively large
orders that are not of a repetitive nature.
Selling, general and administrative expenses increased by approximately
$634,000 over the amount reported for the second quarter of 1996, and by
approximately $1,160,000 for the first six months of 1997 compared to the first
six months of 1996. This category of expense has increased, in absolute terms,
primarily due to additional expenses associated with H & L Tool. When measured
as a percentage of sales, however, this category of expense has declined.
Working capital at the end of the second quarter amounted to approximately $12.7
million, an increase of approximately $700,000 from year end 1996. The decline
in inventory levels at the end of the second quarter of 1997 relative to year
end 1996 reflects both a reduction in the overall quantity of inventory on hand
as well as the realization of approximately $190,000 of "step-up" value
associated with the acquisition of inventory at H & L Tool, as discussed in
previous reports. Inventory levels are considered appropriate for the current
level of business activity. Late in 1996, in connection with the purchase of H
& L Tool, the Company borrowed $9.0 million, on an unsecured basis, subject to
certain customary covenants. Under the terms of the note evidencing such debt,
the Company will repay the principal in 20 quarterly installments of $450,000,
plus interest computed on the unpaid balance at a variable rate that is
calculated under one of two methods: the LIBOR rate plus 80 basis points; or the
lender's reference rate, less 75 basis points. The rate is adjusted quarterly
and at the end of the second quarter of 1997 was approximately 6.7% and the
outstanding principal balance was $8.1 million. The $1.0 million
-9-
<PAGE> 11
line of credit originally obtained in connection with the acquisition was
extended through May 1998 and at June 30, 1997 it remained unused. The Company
believes that its existing cash, cash equivalents, short-term investments and
existing borrowings will be sufficient to provide adequate working capital
through at least the next twelve months.
The Financial Accounting Standards Board ("FASB") issued Statement of
Financial Accounting Standards ("SFAS") No. 128, "Earnings Per Share" in
February 1997. This statement establishes new standards for computing and
presenting earnings per share. This statement is effective for financial
statements issued for periods ending after December 15, 1997; earlier adoption
is not permitted. Adoption of this statement is not expected to have a
significant impact on the Company's computation and presentation of earnings per
share.
The FASB issued SFAS No. 130, "Reporting Comprehensive Income" in June
1997. In addition to net income, comprehensive income includes items recorded
directly to stockholder's equity, such as preferred stock accretion, preferred
stock dividends and the income tax benefit related to the exercise of certain
stock options. This statement is effective for fiscal years beginning after
December 15, 1997 and is not expected to have a significant impact on the
Company's financial statement presentation.
The FASB issued SFAS No. 131, "Disclosures about Segments of an Enterprise
and Related Information" in June 1997. This statement establishes new standards
for reporting information about operating segments in interim and annual
financial statements, and is effective for fiscal years beginning after December
15, 1997. The Company is currently evaluating the impact this statement will
have on the consolidated financial statements.
Continuing efforts to solicit new fastener business from both new and
existing customers were moderately successful during the second quarter, but a
general decline in demand for automatic rivet setting machinery continues to
dampen our optimism for the balance of the current year. Recent automobile
production has been below year earlier levels, and we see no evidence of an
increase in activity in the near term. Indeed, our third quarter historically
is relatively weak as many of our major customers operate on reduced schedules
related to vacation shutdowns. Aggressive marketing efforts and a sharp focus
on controlling manufacturing costs will be necessary in order to participate in
the somewhat more limited opportunities that will exist in the coming months.
While we do not expect the second half of 1997 will be quite as successful as
the first half, we are confident that the Company is well prepared to take
advantage of any opportunities that lie ahead.
See the Company's Interim Report to Shareholders for the quarter ended
June 30, 1997 for additional information. This section is incorporated by
reference. The interim report is filed as an exhibit to this report.
This discussion contains certain "forward-looking statements" which are
inherently subject to risks and uncertainties that may cause actual events to
differ materially from those discussed herein. Factors which may cause such
differences in events include, among other things, fluctuations in general
economic conditions, consumer demand, the gain or loss of a key customer, the
price and availability of the Company's primary raw materials and the ability
of the Company to successfully integrate H & L Tool into its operations.
Therefore, readers are cautioned not to place undue reliance upon such
forward-looking statements.
-10-
<PAGE> 12
PART II -- OTHER INFORMATION
Item 4. Submission of matters to a vote of security holders
The Company's Annual Meeting of Stockholders was held on May 13, 1997. At
the meeting, 89.3% of the outstanding shares of the Company's voting stock was
represented in person or by proxy. The only proposal voted upon was the
election of six directors for a term ending at the Annual Meeting in 1998. The
six persons nominated by the Company's Board of Directors received the
following votes and were elected:
NAME FOR WITHHELD
---- --- --------
John A. Morrissey 514,904 7,971
Walter W. Morrissey 514,884 7,991
Robert K. Brown 514,658 8,217
John C. Osterman 514,904 7,971
John R. Madden 513,484 9,391
Stephen L. Levy 513,328 9,547
As to this proposal, there were no broker non-votes.
Item 6. Exhibits and Reports on Form 8-K
(a) Exhibits
19.1 Interim Report to Shareholders for the quarter ended June 30,
1997.
27.1 Financial Data Schedule.
(b) Reports on Form 8-K
No reports on Form 8-K were filed during the three months ended
June 30, 1997.
-11-
<PAGE> 13
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the
registrant has duly caused this report to be signed on its behalf by the
undersigned thereunto duly authorized.
CHICAGO RIVET & MACHINE CO.
---------------------------
(Registrant)
Date: August 13, 1997
/s/ John A. Morrissey
----------------------------------
John A. Morrissey
Chairman of the Board of Directors
and Chief Executive Officer
Date: August 13, 1997
/s/ John C. Osterman
----------------------------------
John C. Osterman
President, Chief Operating
Officer and Treasurer (Principal
Financial Officer)
Date: August 13, 1997
/s/ Stephen D. Voss
----------------------------------
Stephen D. Voss
Assistant Treasurer and Controller
-12-
<PAGE> 14
CHICAGO RIVET & MACHINE CO.
EXHIBITS
INDEX TO EXHIBITS
Exhibit
Number Page
- ------- ----
19.1 Interim Report to Shareholders for the
quarter ended June 30, 1997. 14 - 16
27.1 Financial Data Schedule 17
-13-
<PAGE> 1
EXHIBIT 19.1
To Our Shareholders:
The comparative results of operations of Chicago Rivet & Machine Co. for
the second quarter and first six months of 1997 and 1996 are summarized below.
Results for 1997 include the operations of the Company's H & L Tool division,
which was acquired in December 1996.
Results for the second quarter of this year were excellent. Net sales and
lease revenues totaled $11,564,802 during the second quarter of 1997, which
compares favorably with net sales and lease revenues of $6,162,712 recorded
during the second quarter of 1996. On a year to date basis, 1997 revenues
total $23,463,447 for the first six months, compared with $11,486,344 recorded
in the first half of 1996. Year to year revenue comparisons for both the
second quarter and the first six months are favorable for the majority of the
Company's products, although, additional revenues from the Company's H & L
Tool operation continue to account for the vast majority of the change in
revenue from the corresponding year earlier period.
Net income was up sharply, totaling $1,070,424 or $1.83 per share on
585,722 average shares outstanding during the second quarter of 1997. This
compares favorably with the year earlier period when earnings amounted to
$433,227 or $.74 per share on 585,748 average shares outstanding. For the
first half of 1997, net income increased to $1,802,407 or $3.08 per share on
585,735 average shares outstanding, compared with the first half of 1996 when
net income amounted to $783,856 or $1.34 per share on 585,748 average shares
outstanding. Once again, the additional revenues associated with H & L Tool
were the largest single factor contributing to the increase in second quarter
income. Other positive factors affecting second quarter earnings include
improvements in gross margins as manufacturing costs remained under tight
control, a gain of approximately $.20 per share related to adjustments to
certain cost of sales estimates and a gain of approximately $.15 per share from
the sale of certain, idle assets.
We continue to be pleased with the operating results at all facilities.
Although results for the second quarter were substantially better than
anticipated, in part due to a few relatively large orders that are not of a
repetitive nature, overall, our markets are sluggish. Continuing efforts to
solicit new fastener business from both new and existing customers were
moderately successful during the second quarter, but a general decline in demand
for automatic rivet setting machinery continues to dampen our optimism for the
balance of the current year. Recent automobile production has been below year
earlier levels, and we see no evidence of an increase in activity in the near
term. Indeed, our third quarter historically is relatively weak as many of our
major customers operate on reduced schedules related to vacation shutdowns.
Aggressive marketing efforts and a sharp focus on controlling manufacturing
costs will be necessary in order to participate in the somewhat more limited
opportunities that will exist in the coming months. While we do not expect the
second half of 1997 will be quite as successful as the first half, we are
confident that the Company is well prepared to take advantage of any
opportunities that lie ahead.
Respectfully yours,
John A. Morrissey John C. Osterman
Chairman President
July 23, 1997
-14-
<PAGE> 2
This discussion contains certain "forward-looking statements" which are
inherently subject to risks and uncertainties that may cause actual events to
differ materially from those discussed herein. Factors which may cause such
differences in events include, among other things, fluctuations in general
economic conditions, consumer demand, the gain or loss of a key customer, the
price and availability of the Company's primary raw materials and the ability
of the Company to successfully integrate H & L Tool into its operations.
Therefore, readers are cautioned not to place undue reliance upon such
forward-looking statements.
-15-
<PAGE> 3
CHICAGO RIVET & MACHINE CO.
Summary of Consolidated Results of Operations
For the Three and Six Months Ended June 30
<TABLE>
<CAPTION>
SECOND QUARTER FIRST SIX MONTHS
---------------------------- -----------------------------
1997 1996 1997 1996
------------- ------------ ------------- -------------
<S> <C> <C> <C> <C>
Net sales and lease revenue $ 11,564,802 $ 6,162,712 $ 23,463,447 $ 11,486,344
Income before taxes 1,711,424 702,245 2,877,407 1,273,856
Income after taxes 1,070,424 433,227 1,802,407 783,856
Net income per share 1.83 .74 3.08 1.34
Average shares outstanding 585,722 585,748 585,735 585,748
- ----------------------------------------------------------------------------------------
(All figures subject to year end audit)
</TABLE>
-16-
<TABLE> <S> <C>
<ARTICLE> 5
<S> <C>
<PERIOD-TYPE> 6-MOS
<FISCAL-YEAR-END> DEC-31-1997
<PERIOD-END> JUN-30-1997
<CASH> 4,569,909
<SECURITIES> 1,975,403
<RECEIVABLES> 5,537,844
<ALLOWANCES> 126,011
<INVENTORY> 5,786,065
<CURRENT-ASSETS> 18,875,986
<PP&E> 27,959,520
<DEPRECIATION> 14,300,200
<TOTAL-ASSETS> 32,535,306
<CURRENT-LIABILITIES> 6,143,765
<BONDS> 6,300,000
0
0
<COMMON> 1,170,896
<OTHER-SE> 17,750,286
<TOTAL-LIABILITY-AND-EQUITY> 32,535,306
<SALES> 23,275,569
<TOTAL-REVENUES> 23,463,447
<CGS> 16,604,608
<TOTAL-COSTS> 16,604,608
<OTHER-EXPENSES> 3,931,340
<LOSS-PROVISION> 15,000
<INTEREST-EXPENSE> 274,374
<INCOME-PRETAX> 2,877,407
<INCOME-TAX> 1,075,000
<INCOME-CONTINUING> 1,802,407
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 1,802,407
<EPS-PRIMARY> 3.08
<EPS-DILUTED> 3.08
</TABLE>
