<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 January 31, 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 January 31, 1996, close of the period covered by this report.
<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
FORM 10-Q
PART I. FINANCIAL INFORMATION
ITEM 1. FINANCIAL STATEMENTS
MICHIGAN RIVET CORPORATION
CONDENSED CONSOLIDATED BALANCE SHEETS (UNAUDITED)
<TABLE>
<CAPTION>
ASSETS
January 31, October 31,
1996 1995
----------- ------------
<S> <C> <C>
Current Assets:
Cash............................................. $ 178,957 $ 110,682
Accounts receivable, less allowance of $50,000.. 4,976,931 5,368,533
Inventories..................................... 5,029,644 4,968,944
Deferred federal income taxes................... 697,639 697,639
Prepaid expenses and other current assets....... 173,241 182,590
----------- ------------
TOTAL CURRENT ASSETS...... 11,056,412 11,328,388
Other Assets.................................... 505,324 505,324
Property, Plant and Equipment................... 23,226,661 22,999,298
Less accumulated depreciation................. 14,380,137 14,178,218
----------- ------------
8,846,524 8,821,080
----------- ------------
$20,408,260 $ 20,654,792
=========== ============
LIABILITIES AND SHAREHOLDERS' EQUITY
Current Liabilities:
Notes payable to bank............................. $516,575 $ 309,000
Accounts payable.................................. 3,512,845 3,569,626
Payroll and employees benefits.................. 514,962 945,252
Other accrued expenses.......................... 478,797 599,601
Current maturities of long-term debt............ 691,039 691,039
----------- -----------
TOTAL CURRENT LIABILITIES 5,714,218 6,114,518
Long-Term Debt.................................... 4,257,724 4,436,829
Accrued Retiree Health Liability.................. 2,872,315 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............................... 6,783,075 6,590,433
----------- -----------
7,539,003 7,346,361
----------- -----------
$20,408,260 $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
January 31
-----------------------
1996 1995
---------- ----------
<S> <C> <C>
Net sales........................ $9,553,390 $9,775,426
Cost and expenses:
Cost of products sold......... 8,292,304 8,735,409
Selling, administrative
and general expenses..... 763,978 727,591
Life Insurance proceeds....... (1,141,394)
Gain on sale of assets........ ( 78,351)
Interest expense.............. 128,679 193,490
---------- ----------
9,184,961 8,436,475
---------- ----------
Income before
income taxes.......... 368,429 1,338,681
Income taxes..................... 125,000 455,000
---------- ----------
Net Income............... $ 243,429 $ 883,681
========== ==========
Net income per share............. $ .38 $ 1.38
========== ==========
Dividends per share.............. $ .08 $ -0-
========== ==========
</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>
Three Months Ended
January 31
-----------------------------
1996 1995
----------- -----------
<S> <C> <C>
OPERATING ACTIVITIES
Net income......................................... $ 243,429 $ 883,681
Adjustments to reconcile net income (loss) to net
cash used in operating activities:
Depreciation................................... 263,700 268,479
Accrued retiree health liability............... 140,231 401,636
Cash provided from (used in) changes in
operating assets and liabilities:
Accounts receivable........................ 391,602 11,773
Inventories................................ ( 60,700) 152,899
Prepaid expenses and other current assets.. 9,349 ( 126,132)
Accounts payable & other accrued expenses.. ( 607,875) ( 20,474)
------------ ------------
NET CASH PROVIDED BY (USED IN)
OPERATING ACTIVITIES 379,736 1,571,862
INVESTING ACTIVITIES
Acquisition of property, plant and equipment....... ( 289,144) ( 247,686)
FINANCING ACTIVITIES
Net increase (decrease) in short-term debt......... 207 575 (1,391,000)
Payments on long-term debt......................... ( 179,105) ( 54,990)
Dividends.......................................... ( 50,787)
------------ ------------
NET CASH PROVIDED BY (USED IN) FINANCING
ACTIVITIES............................ ( 22,317) (1,445,990)
------------ ------------
INCREASE (DECREASE) IN CASH............. 68,275 ( 121,814)
Cash at beginning of period.......................... 110,682 638,266
------------ ------------
CASH AT END OF PERIOD................... $ 178,957 $ 516,452
============ ============
</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 for the quarter ended January 31, 1996 of $9,553,000 decreased
$222,000, or 2.3%, from the sales reported in the comparable period a year ago.
The decrease in sales resulted from a lower volume of products shipped to the
automotive industry. The net profit for the quarter ended January 31, 1996 was
$243,000 vs. a profit of $884,000 in the comparable period a year ago. For the
first quarter of fiscal year 1995, the pretax profit was favorably affected by
life insurance proceeds of $1,141,394.
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 increased to 8.0% of sales
as compared to 7.4% for the previous year comparable period. This increase
resulted from higher Single Business Tax, commissions and Sales salaries.
Interest expense decreased $65,000 due primarily to a lower borrowing base and
prime interest rate. The rate paid by the Company to Comerica Bank is tied to
the prevailing prime rate.
Financial Condition
The Company has short-term credit lines aggregating $5,000,000. At January 31,
1996, $517,000 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 January 31, 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 2-28-96
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7
<PAGE> 8
EXHIBIT INDEX
<TABLE>
EXHIBIT NO. DESCRIPTION
- ----------- -----------------------------------
<S> <C>
Exhibit 27 Financial Data Schedule
</TABLE>
WARNING: THE EDGAR SYSTEM ENCOUNTERED ERROR(S) WHILE PROCESSING THIS 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>
<CIK> 0000065666
<NAME> MICHIGAN RIVET CORP.
<S> <C>
<PERIOD-TYPE> 3-MOS
<FISCAL-YEAR-END> OCT-31-1996
<PERIOD-START> NOV-01-1995
<PERIOD-END> JAN-31-1996
<CASH> 178,957
<SECURITIES> 0
<RECEIVABLES> 5,026,931
<ALLOWANCES> 50,000
<INVENTORY> 5,029,644
<CURRENT-ASSETS> 11,056,412
<PP&E> 23,226,661
<DEPRECIATION> 14,380,137
<TOTAL-ASSETS> 20,408,260
<CURRENT-LIABILITIES> 5,714,218
<BONDS> 4,257,724
638,525
0
<COMMON> 0
<OTHER-SE> 6,900,478
<TOTAL-LIABILITY-AND-EQUITY> 20,408,260
<SALES> 9,553,390
<TOTAL-REVENUES> 9,553,390
<CGS> 8,292,304
<TOTAL-COSTS> 8,292,304
<OTHER-EXPENSES> 763,978
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 128,679
<INCOME-PRETAX> 368,429
<INCOME-TAX> 125,000
<INCOME-CONTINUING> 243,429
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 243,429
<EPS-PRIMARY> .38
<EPS-DILUTED> .38
</TABLE>
