Chicago Rivet & Machine Co (CVR, Financial) filed Quarterly Report for the period ended 2010-06-30.
Chicago Rivet & Machine Co has a market cap of $16.1 million; its shares were traded at around $16.65 with and P/S ratio of 0.7. The dividend yield of Chicago Rivet & Machine Co stocks is 2.4%.
During the second quarter, the fastener segment continued its rebound from the depressed levels of one year earlier. Fastener segment revenues improved to $6,966,882, from $4,105,171 in the second quarter of 2009, or 69.7%. This marks the fifth consecutive quarterly increase and is 15.3% greater than the first quarter of 2010. For the first six months of the year, fastener segment revenues have increased by $5,272,142, or 68.2%, from $7,734,601 to $13,006,743. With the majority of such revenues derived from the automotive industry, the segment has benefited from a strong rebound in domestic auto and truck production during the current year, as well as new customers and certain high-volume parts added in the last year. As production was expanded to meet the improved demand, segment payroll was increased by $540,000 during the quarter and $1,038,000 for the year to date. Nevertheless, increased production allowed for more optimal utilization of resources, so that while higher on an absolute basis, overall payroll and plant overhead comprised a smaller percentage of net sales than a year ago. The only notable exception is state unemployment taxes that increased by approximately $99,000 during the first half of the year due to higher tax rates. The combination of higher sales, better utilization of resources brought about by improved customer demand, and an ongoing emphasis on efficiency, contributed to an increase in fastener segment gross margin in the second quarter of approximately $1,100,000 and an increase of $2,159,000 in the year to date amount, compared to the year earlier periods.
Revenues within the assembly equipment segment were $971,651 in the second quarter of 2010, an increase of $396,999, or 69.1%, compared to the second quarter of 2009, when revenues were $574,652. Second quarter sales also improved over the first quarter of 2010 by $250,119, or 34.7%. The increase in sales is primarily due to increased machine shipments, which improved by $217,000 compared to last year, and $197,000 compared to the first quarter of this year. Despite the increase in the second quarter, year to date revenues of $1,693,183 represent a slight decline compared to the $1,704,512 reported in 2009, when the inclusion of certain high-dollar shipments caused a spike in first quarter revenues. While the overall improvement in domestic manufacturing activity has resulted in increased sales of parts and tools compared to 2009, machine sales are particularly sensitive to economic conditions, and the lingering uncertainty regarding the economic recovery has contributed to keeping unit shipments relatively unchanged from a year earlier. With manufacturing costs held near levels comparable to the prior year, the increase in revenue has resulted in a $274,000 improvement in assembly equipment segment gross margin for the second quarter compared to last year. This reverses the net decline in gross margin reported in the first quarter for a year to date improvement of $209,000.
Selling and administrative expenses increased during the second quarter of 2010 by $80,791, from $1,234,910 to $1,315,701, compared to the year earlier period. The increase for the quarter is primarily due to a $53,000 increase in commission expense related to higher sales in the current year. For the first six months of the year, selling and administrative expenses have increased $34,551, or 1.4%, from $2,514,985 in 2009 to $2,549,536 in 2010. While commissions have increased approximately $75,000 this year compared to the first half of 2009 due to improved sales, reductions in various other items, including $23,000 for insurance, partially offset this increase.
Working capital at June 30, 2010 amounted to $14.6 million, an increase of approximately $.6 million from the beginning of the year. Most of the net increase relates to a greater accounts receivable balance of $.9 million, primarily related to the increase in sales during the quarter, compared to the fourth quarter of 2009. Inventories have increased by $.3 million, or 8.2%, since the beginning of the year, as quantities on hand are increased for the higher level of activity. Offsetting these changes are increases in accrued payroll of $.4 million and accounts payable of $.2 million that reflect the increased level of operations. The net result of these changes and other cash flow items on cash, cash equivalents and certificates of deposit leaves such total balances relatively unchanged from the beginning of the year at $7 million. Management believes that current cash, cash equivalents and operating cash flow will provide adequate working capital for the foreseeable future.
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Chicago Rivet & Machine Co has a market cap of $16.1 million; its shares were traded at around $16.65 with and P/S ratio of 0.7. The dividend yield of Chicago Rivet & Machine Co stocks is 2.4%.
Highlight of Business Operations:
Results for the second quarter of 2010, as well as those of the current year to date, reflect significant improvement over the same periods in 2009 when business conditions were at their weakest due to the economic crisis. Net sales for the second quarter this year totaled $7,938,533, an increase of $3,258,710, or 69.6%, compared to the year earlier quarter. As of June 30, 2010, year to date sales totaled $14,699,926, an improvement of $5,260,813, or 55.7%, compared to the same period in 2009. The increase in revenue, combined with previously instituted cost control measures, has resulted in a net profit of $420,060, or $.43 per share, in the second quarter of the current year compared with a net loss of $439,458, or $0.45 per share, in the second quarter of 2009. For the first half of 2010, net income was $453,929, or $.47 per share, compared with a net loss of $1,063,318, or $1.10 per share, reported in 2009.During the second quarter, the fastener segment continued its rebound from the depressed levels of one year earlier. Fastener segment revenues improved to $6,966,882, from $4,105,171 in the second quarter of 2009, or 69.7%. This marks the fifth consecutive quarterly increase and is 15.3% greater than the first quarter of 2010. For the first six months of the year, fastener segment revenues have increased by $5,272,142, or 68.2%, from $7,734,601 to $13,006,743. With the majority of such revenues derived from the automotive industry, the segment has benefited from a strong rebound in domestic auto and truck production during the current year, as well as new customers and certain high-volume parts added in the last year. As production was expanded to meet the improved demand, segment payroll was increased by $540,000 during the quarter and $1,038,000 for the year to date. Nevertheless, increased production allowed for more optimal utilization of resources, so that while higher on an absolute basis, overall payroll and plant overhead comprised a smaller percentage of net sales than a year ago. The only notable exception is state unemployment taxes that increased by approximately $99,000 during the first half of the year due to higher tax rates. The combination of higher sales, better utilization of resources brought about by improved customer demand, and an ongoing emphasis on efficiency, contributed to an increase in fastener segment gross margin in the second quarter of approximately $1,100,000 and an increase of $2,159,000 in the year to date amount, compared to the year earlier periods.
Revenues within the assembly equipment segment were $971,651 in the second quarter of 2010, an increase of $396,999, or 69.1%, compared to the second quarter of 2009, when revenues were $574,652. Second quarter sales also improved over the first quarter of 2010 by $250,119, or 34.7%. The increase in sales is primarily due to increased machine shipments, which improved by $217,000 compared to last year, and $197,000 compared to the first quarter of this year. Despite the increase in the second quarter, year to date revenues of $1,693,183 represent a slight decline compared to the $1,704,512 reported in 2009, when the inclusion of certain high-dollar shipments caused a spike in first quarter revenues. While the overall improvement in domestic manufacturing activity has resulted in increased sales of parts and tools compared to 2009, machine sales are particularly sensitive to economic conditions, and the lingering uncertainty regarding the economic recovery has contributed to keeping unit shipments relatively unchanged from a year earlier. With manufacturing costs held near levels comparable to the prior year, the increase in revenue has resulted in a $274,000 improvement in assembly equipment segment gross margin for the second quarter compared to last year. This reverses the net decline in gross margin reported in the first quarter for a year to date improvement of $209,000.
Selling and administrative expenses increased during the second quarter of 2010 by $80,791, from $1,234,910 to $1,315,701, compared to the year earlier period. The increase for the quarter is primarily due to a $53,000 increase in commission expense related to higher sales in the current year. For the first six months of the year, selling and administrative expenses have increased $34,551, or 1.4%, from $2,514,985 in 2009 to $2,549,536 in 2010. While commissions have increased approximately $75,000 this year compared to the first half of 2009 due to improved sales, reductions in various other items, including $23,000 for insurance, partially offset this increase.
Working capital at June 30, 2010 amounted to $14.6 million, an increase of approximately $.6 million from the beginning of the year. Most of the net increase relates to a greater accounts receivable balance of $.9 million, primarily related to the increase in sales during the quarter, compared to the fourth quarter of 2009. Inventories have increased by $.3 million, or 8.2%, since the beginning of the year, as quantities on hand are increased for the higher level of activity. Offsetting these changes are increases in accrued payroll of $.4 million and accounts payable of $.2 million that reflect the increased level of operations. The net result of these changes and other cash flow items on cash, cash equivalents and certificates of deposit leaves such total balances relatively unchanged from the beginning of the year at $7 million. Management believes that current cash, cash equivalents and operating cash flow will provide adequate working capital for the foreseeable future.
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