<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, 1997
Commission file number: 0-6056
Michigan Rivet Corporation
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(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
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(Address of Principal Executive Offices)
Registrant's telephone number, including area code: (810) 754-5100
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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, 1997, 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, 1996.
<PAGE> 3
PART I. FINANCIAL INFORMATION FORM 10-Q
ITEM 1. FINANCIAL STATEMENTS
MICHIGAN RIVET CORPORATION
CONDENSED CONSOLIDATED BALANCE SHEETS (UNAUDITED)
<TABLE>
<CAPTION>
ASSETS
January 31, October 31,
1997 1996
----------- -----------
<S> <C> <C>
Current Assets:
Cash............................................ $ 323,113 $ 119,371
Accounts receivable, less allowance of $50,000.. 5,076,061 6,151,076
Inventories..................................... 4,585,302 4,704,302
Deferred federal income taxes................... 520,211 520,211
Prepaid expenses and other current assets....... 254,387 189,991
------------ ------------
TOTAL CURRENT ASSETS...... 10,759,074 11,684,951
Other Assets...................................... 704,191 704,191
Property, Plant and Equipment..................... 24,297,774 23,977,786
Less accumulated depreciation................... 15,286,789 15,067,089
------------ ------------
9,010,985 8,910,697
------------ ------------
$20,474,250 $21,299,839
============ ============
<CAPTION>
LIABILITIES AND SHAREHOLDERS' EQUITY
<S> <C> <C>
Current Liabilities:
Accounts payable................................ $ 4,041,025 $ 3,813,348
Payroll and employees benefits.................. 472,715 969,787
Other accrued expenses.......................... 309,778 361,270
Current maturities of long-term debt............ 684,815 684,815
------------ ------------
TOTAL CURRENT LIABILITIES 5,508,333 5,829,220
Long-Term Debt.................................... 3,064,019 3,746,600
Accrued Retiree Health Liability.................. 3,414,183 3,279,140
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............................... 7,731,787 7,688,951
------------ ------------
8,487,715 8,444,879
------------ ------------
$ 20,474,250 $21,299,839
============ ============
</TABLE>
See notes to condensed consolidated financial statements.
<PAGE> 4
FORM 10-Q
MICHIGAN RIVET CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(UNAUDITED)
<TABLE>
<CAPTION>
Three Months Ended
January 31
-------------------------------
1997 1996
---------- ---------
<S> <C> <C>
Net sales . . . . . . . . . . . . . . . . . . . . . $ 9,908,350 $ 9,553,390
Cost and expenses:
Cost of products sold . . . . . . . . . . . . . . 8,849,333 8,292,304
Selling, administrative
and general expenses . . . . . . . . . . . . 802,601 763,978
Gain on sale of assets . . . . . . . . . . . . . (20,000)
Interest expense . . . . . . . . . . . . . . . . 96,392 128,679
----------- -----------
9,728,326 9,184,961
----------- -----------
Income before income taxes . . . . . . . . . 180,024 368,429
Income taxes . . . . . . . . . . . . . . . . . . . . 61,000 125,000
----------- -----------
Net Income . . . . . . . . . . . . . . . . . $ 119,024 $ 243,429
=========== ===========
Net income per share . . . . . . . . . . . . . . . . $ .19 $ .38
======= ======
Dividends per share . . . . . . . . . . . . . . . . $ .12 $ .08
======= ======
</TABLE>
See notes to condensed consolidated financial statements.
<PAGE> 5
FORM 10-Q
MICHIGAN RIVET CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF
CASH FLOWS (UNAUDITED)
<TABLE>
<CAPTION>
Three Months Ended
January 31
--------------------------------
1997 1996
----------- ------------
<S> <C> <C>
OPERATING ACTIVITIES
Net income . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 119,024 $ 243,429
Adjustments to reconcile net income (loss) to net
cash used in operating activities:
Depreciation . . . . . . . . . . . . . . . . . . . . . . . . 269,700 263,700
Accrued retiree health liability . . . . . . . . . . . . . . . 135,043 140,231
Cash provided from (used in) changes in
operating assets and liabilities:
Accounts receivable . . . . . . . . . . . . . . . . . . 1,075,015 391,602
Inventories . . . . . . . . . . . . . . . . . . . . . . 119,000 ( 60,700)
Prepaid expenses and other current assets . . . . . . . ( 64,396) 9,349
Accounts payable & other accrued expenses . . . . . . . ( 320,887) ( 607,875)
------------ ------------
NET CASH PROVIDED BY (USED IN)
OPERATING ACTIVITIES 1,332,499 379,736
INVESTING ACTIVITIES
Acquisition of property, plant and equipment . . . . . . . . . . . ( 369,988) ( 289,144)
FINANCING ACTIVITIES
Net increase (decrease) in short-term debt . . . . . . . . . . . . 207,575
Payments on long-term debt . . . . . . . . . . . . . . . . . . . . ( 682,581) ( 179,105)
Dividends . . . . . . . . . . . . . . . . . . . . . . . . . . . . ( 76,188) ( 50,787)
------------ ------------
NET CASH PROVIDED BY (USED IN) FINANCING
ACTIVITIES . . . . . . . . . . . . . . . . . . . ( 758,769) ( 22,317)
------------ ------------
INCREASE (DECREASE) IN CASH . . . . . . . . . . . . 203,742 68,275
Cash at beginning of period . . . . . . . . . . . . . . . . . . . . . 119,371 110,682
------------ ------------
CASH AT END OF PERIOD . . . . . . . . . . . . . . . $ 323,113 $ 178,957
============ ============
</TABLE>
See notes to condensed consolidated financial statements.
<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, 1997 of $9,908,000 increased
$355,000, or 3.7%, from the sales reported in the comparable period a year ago.
The increase in sales resulted from a higher volume of products shipped to the
automotive industry. The net profit for the quarter ended January 31, 1997 was
$119,000 vs. a profit of $243,000 in the comparable period a year ago.
The higher cost of sales percentage for the current fiscal year quarter is due
to the lower production efficiencies along with an increase in some
manufacturing costs.
Selling, general, and administrative expenses have increased to 8.1% of sales
as compared to 8.0% for the previous year comparable period. This increase
resulted from higher commissions on sales.
Interest expense decreased $32,000 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,
1997, $0 was outstanding.
<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, 1997.
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 February 26, 1997
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<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>
<CIK> 0000065666
<NAME> MICHIGAN RIVET CORPORATION
<S> <C>
<PERIOD-TYPE> 3-MOS
<FISCAL-YEAR-END> OCT-31-1997
<PERIOD-START> NOV-01-1996
<PERIOD-END> JAN-31-1997
<CASH> 323,113
<SECURITIES> 0
<RECEIVABLES> 5,126,061
<ALLOWANCES> 50,000
<INVENTORY> 4,585,302
<CURRENT-ASSETS> 10,759,074
<PP&E> 24,297,774
<DEPRECIATION> 15,286,789
<TOTAL-ASSETS> 20,474,250
<CURRENT-LIABILITIES> 5,508,333
<BONDS> 3,064,019
0
0
<COMMON> 638,525
<OTHER-SE> 7,849,190
<TOTAL-LIABILITY-AND-EQUITY> 20,474,250
<SALES> 9,908,350
<TOTAL-REVENUES> 9,908,350
<CGS> 8,849,333
<TOTAL-COSTS> 8,849,333
<OTHER-EXPENSES> 782,601
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 96,392
<INCOME-PRETAX> 180,024
<INCOME-TAX> 61,000
<INCOME-CONTINUING> 119,024
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 119,024
<EPS-PRIMARY> .19
<EPS-DILUTED> .19
</TABLE>
