<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, 1997
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 X No
------ ------
There were 638,525 outstanding shares of the registrant's common stock, $1.00
par value, as of April 30, 1997, close of the period covered by this report.
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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.
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,
1997 1996
----------- -----------
<S> <C> <C>
Current Assets:
Cash............................................ $ 191,799 $ 119,371
Accounts receivable, less allowance of $50,000.. 5,838,567 6,151,076
Inventories..................................... 4,826,302 4,704,302
Deferred federal income taxes................... 520,211 520,211
Prepaid expenses and other current assets....... 239,241 189,991
----------- -----------
TOTAL CURRENT ASSETS...... 11,616,120 11,684,951
Other Assets...................................... 703,466 704,191
Property, Plant and Equipment..................... 24,637,730 23,977,786
Less accumulated depreciation................... 15,556,489 15,067,089
----------- -----------
9,081,241 8,910,697
----------- -----------
$21,400,827 $21,299,839
=========== ===========
LIABILITIES AND SHAREHOLDERS' EQUITY
Current Liabilities:
Notes payable to bank........................... $ 687,000 $ 0
Accounts payable................................ 4,271,228 3,813,348
Payroll and employee benefits................... 596,218 969,787
Other accrued expenses.......................... 259,091 361,270
Current maturities of long-term debt............ 334,815 684,815
----------- ---------
TOTAL CURRENT LIABILITIES........ 6,148,352 5,829,220
Long-Term Debt.................................... 2,742,794 3,746,600
Accrued Retiree Health Liability.................. 3,548,143 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............................... 8,205,610 7,688,951
----------- ----------
8,961,538 8,444,879
----------- ----------
$21,400,827 $21,299,839
=========== ===========
</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
----------------------- -------------------------
1997 1996 1997 1996
----------- ---------- ----------- -----------
<S> <C> <C> <C> <C>
Net sales....................... $11,558,406 $10,209,823 $21,486,756 $19,827,236
Cost and expenses:
Cost of products sold......... 9,826,607 8,833,422 18,675,940 17,125,726
Selling, administrative
and general expenses... 816,035 815,748 1,618,636 1,579,726
Interest expense.............. 81,753 122,471 178,145 251,150
---------- ---------- ----------- ----------
10,724,395 9,771,641 20,472,721 18,956,602
---------- ---------- ----------- ----------
Income before
income taxes......... 834,011 502,205 1,014,035 870,634
Income taxes.................... 284,000 171,000 345,000 296,000
---------- ---------- ----------- -----------
Net Income ............ $ 550,011 $ 331,205 $ 669,035 $ 574,634
========== ========== =========== ===========
Net Income per share ........... $ .86 $ .52 $ 1.05 $ .90
========== ========== =========== ===========
Dividends per share............. $ .12 $ .08 $ .24 $ .16
========== ========== =========== ===========
</TABLE>
See notes to condensed consolidated financial statements.
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FORM 10-Q
MICHIGAN RIVET CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF
CASH FLOWS (UNAUDITED)
<TABLE>
<CAPTION>
Six Months Ended
April 30
--------------------------------
1997 1996
------------ -------------
<S> <C> <C>
OPERATING ACTIVITIES
Net income ........................................... $ 669,035 $ 574,634
Adjustments to reconcile net income to net cash
used in operating activities:
Depreciation................................... 539,400 529,400
Accrue retiree health liability............... 269,003 278,316
Cash provided from (used in) changes in
operating assets and liabilities:
Accounts receivable........................ 312,509 269,449
Inventories................................ (122,000) (111,700)
Prepaid expenses and other current assets.. (48,525) 21,838
Accounts payable & other accrued expenses.. (17,868) (533,367)
----------- ------------
NET CASH PROVIDED BY
OPERATING ACTIVITIES.................. 1,601,554 1,028,580
INVESTING ACTIVITIES
Acquisition of property, plant and equipment.......... (709,944) (493,511)
FINANCING ACTIVITIES
Net increase (decrease) in short-term debt............ 687,000 (179,000)
Payments on long-term debt............................ (1,353,806) (353,496)
Dividends paid........................................ (152,376) (101,574)
----------- ------------
NET CASH USED IN FINANCING
ACTIVITIES............................ (819,182) (634,070)
----------- ------------
INCREASE (DECREASE) IN CASH............ 72,428 (99,001)
Cash at beginning of period............................. 119,371 110,682
----------- ------------
CASH AT END OF PERIOD.................. $ 191,799 $ 11,681
=========== ============
</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, 1997 of $11,558,000 increased
$1,348,000, or 13% from the sales reported in the comparable period a year ago.
The increase in sales resulted from new orders and adjusted automotive
production levels. The net profit for the quarter ended April 30, 1997 was
$550,000 vs. a net profit of $331,000 in the comparable period a year ago.
The lower cost of sales percentage for the current fiscal year quarter is due
to change in product mix.
Selling, general and administrative expenses decreased to 7.1% of sales as
compared to 8.0% for the previous year comparable period. The total dollar
amount remained about the same for both years.
Interest expense decreased $41,000 due primarily to the lower borrowing base
and interest rates.
For the first six months of 1997, net sales of $21,467,000 were 8.4% greater
than the same period in 1996, due primarily to higher automotive production
schedules and new orders. The net profit for the first six months of 1997 was
$669,000 vs. a net profit of $575,000 in the comparable period a year ago.
Financial Condition
Liquidity and Capital Resources
The Company has short-term credit lines aggregating $5,000,000. At April 30,
1997, $687,000 was outstanding.
During the six months ended April 30, 1997, the Company repaid $1,095,000 of
long-term debt early which was partially funded by short-term bank borrowing.
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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, 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 5-29-97
---------------------------
7
<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 10Q.
</LEGEND>
<CIK> 0000065666
<NAME> MICHIGAN RIVET CORP
<S> <C>
<PERIOD-TYPE> 6-MOS
<FISCAL-YEAR-END> OCT-31-1997
<PERIOD-START> NOV-01-1996
<PERIOD-END> APR-30-1997
<CASH> 191,799
<SECURITIES> 0
<RECEIVABLES> 5,888,567
<ALLOWANCES> 50,000
<INVENTORY> 4,826,302
<CURRENT-ASSETS> 11,616,120
<PP&E> 24,637,730
<DEPRECIATION> 15,556,489
<TOTAL-ASSETS> 21,400,827
<CURRENT-LIABILITIES> 6,148,352
<BONDS> 2,742,794
0
0
<COMMON> 638,525
<OTHER-SE> 8,323,013
<TOTAL-LIABILITY-AND-EQUITY> 21,400,827
<SALES> 21,486,756
<TOTAL-REVENUES> 21,486,756
<CGS> 18,675,940
<TOTAL-COSTS> 18,675,940
<OTHER-EXPENSES> 1,618,636
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 178,145
<INCOME-PRETAX> 1,014,035
<INCOME-TAX> 345,000
<INCOME-CONTINUING> 669,035
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 669,035
<EPS-PRIMARY> 1.05
<EPS-DILUTED> 1.05
</TABLE>
