<PAGE> 1
CONFORMED
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D. C. 20549
FORM 10-Q
QUARTERLY REPORT UNDER SECTION 13 OF THE
SECURITIES EXCHANGE ACT of 1934
For Quarter ended April 30, 1996
Commission file number: 0-6056
Michigan Rivet Corporation
------------------------------------------------------
(exact name of registrant as specified in its charter)
Michigan 38-1887153
- ------------------------ ------------------------------------
(State of Incorporation) (I.R.S. Employer Identification No.)
13201 Stephens Road; Warren, MI 48089
----------------------------------------
(Address of Principal Executive Offices)
Registrant's telephone number, including area code: (810) 754-5100
--------------
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 XX No
------ ------
There were 638,525 outstanding shares of the registrant's common stock, $1.00
par value, as of April 30, 1996, close of the period covered by this report.
1
<PAGE> 2
MICHIGAN RIVET CORPORATION
NOTE TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)
NOTE A - BASIS OF PRESENTATION
The accompanying unaudited condensed consolidated financial statements have
been prepared in accordance with generally accepted accounting principles for
interim financial information and with the instructions to Form 10-Q and Rule
10-01 of Regulation S-X. Accordingly, they do not include all of the
information and footnotes required by generally accepted accounting principles
for complete financial statements. In the opinion of management, all
adjustments (consisting of normal recurring accruals) considered necessary for
a fair presentation have been included. Operating results for the interim
periods are not necessarily indicative of the results that may be expected for
the year. For further information, refer to the consolidated financial
statements and footnotes thereto included in the Company's Annual Report on
Form 10-K for the year ended October 31, 1995.
2
<PAGE> 3
PART I. FINANCIAL INFORMATION FORM 10-Q
ITEM 1. FINANCIAL STATEMENTS
MICHIGAN RIVET CORPORATION
CONDENSED CONSOLIDATED BALANCE SHEETS (UNAUDITED)
<TABLE>
<CAPTION>
ASSETS
April 30, October 31,
1996 1995
----------- --------------
<S> <C> <C>
Current Assets:
Cash............................................ $ 11,681 $ 110,682
Accounts receivable, less allowance of $50,000.. 5,099,084 5,368,533
Inventories..................................... 5,080,644 4,968,944
Deferred federal income taxes................... 697,639 697,639
Prepaid expenses and other current assets....... 160,752 182,590
----------- -----------
TOTAL CURRENT ASSETS..... 11,049,800 11,328,388
Other Assets..................................... 505,324 505,324
Property, Plant and Equipment.................... 23,408,552 22,999,298
Less accumulated depreciation................... 14,623,361 14,178,218
----------- -----------
8,785,191 8,821,080
----------- -----------
$20,340,315 $20,654,792
=========== ===========
LIABILITIES AND SHAREHOLDERS' EQUITY
Current Liabilities:
Notes payable to bank........................... $ 130,000 $ 309,000
Accounts payable................................ 3,669,328 3,569,626
Payroll and employee benefits................... 528,199 945,252
Other accrued expenses.......................... 383,595 599,601
Current maturities of long-term debt............ 691,039 691,039
----------- -----------
TOTAL CURRENT LIABILITIES 5,402,161 6,114,518
Long-Term Debt................................... 4,083,333 4,436,829
Accrued Retiree Health Liability................. 3,010,400 2,732,084
Deferred Income Taxes............................ 25,000 25,000
Shareholders' Equity
Common stock - $1 par value
Authorized - 1,000,000 shares
Outstanding - 638,525 shares............... 638,525 638,525
Other capital................................... 117,403 117,403
Retained earnings............................... 7,063,493 6,590,433
----------- -----------
7,819,421 7,346,361
----------- -----------
$20,340,315 $20,654,792
=========== ===========
</TABLE>
See notes to condensed consolidated financial statements.
3
<PAGE> 4
FORM 10-Q
MICHIGAN RIVET CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(UNAUDITED)
<TABLE>
<CAPTION>
Three Months Ended Six Months Ended
April 30 April 30
---------------------- ---------------------
1996 1995 1996 1995
---------------------- ---------------------
<S> <C> <C> <C> <C>
Net sales...................... $10,209,823 $10,520,858 $19,827,236 $20,374,635
Cost and expenses:
Cost of products sold......... 8,833,422 9,254,183 17,125,726 17,989,592
Selling, administrative
and general expenses...... 815,748 893,245 1,579,726 1,620,836
Life Insurance Proceeds....... (1,141,394)
Interest expense.............. 122,471 172,411 251,150 365,901
----------- ----------- ----------- -----------
9,771,641 10,319,839 18,956,602 18,834,935
----------- ----------- ----------- -----------
Income before
income taxes........... 502,205 201,019 870,634 1,539,000
Income taxes................... 171,000 69,000 296,000 524,000
----------- ----------- ----------- -----------
Net Income .............. $ 331,205 $ 132,019 $ 574,634 $ 1,015,700
=========== =========== =========== ===========
Net Income per share .......... $ .52 $ .21 $ .90 $ 1.59
======== ======== ======== ========
Dividends per share............ $ .08 $ .08 $ .16 $ .08
======== ======== ======== ========
</TABLE>
See notes to condensed consolidated financial statements.
4
<PAGE> 5
FORM 10-Q
MICHIGAN RIVET CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF
CASH FLOWS (UNAUDITED)
<TABLE>
<CAPTION>
Six Months Ended
April 30
-----------------------
1996 1995
---------- -----------
<S> <C> <C>
OPERATING ACTIVITIES
Net income ........................................ $ 574,634 $ 1,015,700
Adjustments to reconcile net income to net cash
used in operating activities:
Depreciation................................... 529,400 629,084
Accrued retiree health liability............... 278,316 832,230
Cash provided from (used in) changes in
operating assets and liabilities:
Accounts receivable........................ 269,449 (621,977)
Inventories................................ (111,700) 262,100
Prepaid expenses and other current assets.. 21,838 81,102
Accounts payable & other accrued expenses.. (533,367) (64,061)
---------- -----------
NET CASH PROVIDED BY
OPERATING ACTIVITIES.................... 1,028,580 2,134,178
INVESTING ACTIVITIES
Acquisition of property, plant and equipment....... (493,511) (475,288)
FINANCING ACTIVITIES
Net decrease in short-term debt.................... (179,000) (1,353,000)
Payments on long-term debt......................... (353,496) (184,830)
Dividends paid..................................... (101,574) (49,377)
---------- -----------
NET CASH USED IN FINANCING
ACTIVITIES.............................. (634,070) (1,587,207)
---------- -----------
INCREASE (DECREASE) IN CASH.............. (99,001) 71,683
Cash at beginning of period......................... 110,682 638,266
---------- -----------
CASH AT END OF PERIOD.................... $ 11,681 $ 709,949
========== ===========
</TABLE>
See notes to condensed consolidated financial statements.
5
<PAGE> 6
ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL
CONDITION AND RESULTS OF OPERATIONS
MICHIGAN RIVET CORPORATION
Results of Operations
Net sales in the quarter ended April 30, 1996 of $10,210,000 decreased
$311,000, or 3% from the sales reported in the comparable period a year ago.
The decrease in sales resulted from adjusted automotive production levels and
the General Motors strike. The net profit for the quarter ended April 30, 1996
was $502,000 vs. a net profit of $132,000 in the comparable period a year ago.
The lower cost of sales percentage for the current fiscal year quarter is due
to the lower accrual for FAS 106 based on an agreement reached with the
Company's Union in 1995 which decreased the projected benefit obligation.
Selling, general and administrative expenses have decreased to 8.0% of sales as
compared to 8.5% for the previous year comparable period. This decrease was
due to lower sales commissions, Michigan Single Business Tax and bonus
provision.
Interest expense decreased $59,000 due primarily to the lower borrowing base
and interest rates.
For the first six months of 1996, net sales of $19,827,000 were 2.8% lower than
the same period in 1995, due primarily to lower automotive production schedules
and the General Motors strike. The net profit for the first six months of 1996
was $575,000 vs. a net profit of $1,016,000 in the comparable period a year
ago. The pretax profit in the prior year period was favorable affected by life
insurance proceeds of $1,141,000.
Financial Condition
The Company has short-term credit lines aggregating $5,000,000. At April 30,
1996, $130,000 was outstanding.
6
<PAGE> 7
PART II. OTHER INFORMATION
ITEM 6. EXHIBITS AND REPORTS ON FORM 8-K
No reports on Form 8-K were filed during the quarter ended April 30, 1996.
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, hereunto, duly authorized.
Michigan Rivet Corporation
By William P. Lianos
----------------------------------
William P. Lianos
Executive Vice President and Treasurer
(Principal Financial & Accounting Officer)
Date 6-3-96
---------------
7
<PAGE> 8
Exhibit Index
-------------
Exhibit No. Description
- ----------- -----------
27 Financial Data Schedule
<TABLE> <S> <C>
<ARTICLE> 5
<LEGEND>
THIS SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM CONDENSED
CONSOLIDATED BALANCE SHEETS AND STATEMENTS OF OPERATIONS AND IS QUALIFIED IN ITS
ENTIRETY BY REFERENCE TO SUCH 10-Q.
</LEGEND>
<S> <C>
<PERIOD-TYPE> 6-MOS
<FISCAL-YEAR-END> OCT-31-1996
<PERIOD-START> NOV-01-1995
<PERIOD-END> APR-30-1996
<CASH> 11,681
<SECURITIES> 0
<RECEIVABLES> 5,149,084
<ALLOWANCES> 50,000
<INVENTORY> 5,080,644
<CURRENT-ASSETS> 11,049,800
<PP&E> 23,408,552
<DEPRECIATION> 14,623,361
<TOTAL-ASSETS> 20,340,315
<CURRENT-LIABILITIES> 5,402,161
<BONDS> 4,083,333
0
0
<COMMON> 638,525
<OTHER-SE> 7,180,896
<TOTAL-LIABILITY-AND-EQUITY> 20,340,315
<SALES> 19,827,236
<TOTAL-REVENUES> 19,827,236
<CGS> 17,125,726
<TOTAL-COSTS> 17,125,726
<OTHER-EXPENSES> 1,579,726
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 251,150
<INCOME-PRETAX> 870,634
<INCOME-TAX> 296,000
<INCOME-CONTINUING> 574,634
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 574,634
<EPS-PRIMARY> .90
<EPS-DILUTED> .90
</TABLE>
