Attached files
file | filename |
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EX-32.2 - EX-32.2 - CHICAGO RIVET & MACHINE CO | d512170dex322.htm |
EX-32.1 - EX-32.1 - CHICAGO RIVET & MACHINE CO | d512170dex321.htm |
EX-31.2 - EX-31.2 - CHICAGO RIVET & MACHINE CO | d512170dex312.htm |
EX-31.1 - EX-31.1 - CHICAGO RIVET & MACHINE CO | d512170dex311.htm |
EX-21 - EX-21 - CHICAGO RIVET & MACHINE CO | d512170dex21.htm |
10-K - 10-K - CHICAGO RIVET & MACHINE CO | d512170d10k.htm |
Exhibit 13
Chicago Rivet & Machine Co.
2017 Annual Report
Highlights
2017 | 2016 | |||||||
Net Sales |
$ | 35,764,714 | $ | 37,022,378 | ||||
Net Income |
2,079,082 | 2,356,980 | ||||||
Net Income Per Share |
2.15 | 2.44 | ||||||
Dividends Per Share |
1.15 | .99 | ||||||
Net Cash Provided by Operating Activities |
2,993,434 | 4,027,182 | ||||||
Expenditures for Property, Plant and Equipment |
1,337,941 | 2,027,860 | ||||||
Working Capital |
17,040,086 | 16,469,451 | ||||||
Total Shareholders Equity |
28,859,955 | 27,891,925 | ||||||
Common Shares Outstanding at Year-End |
966,132 | 966,132 | ||||||
Shareholders Equity Per Common Share |
29.87 | 28.87 |
Annual Meeting
The annual meeting of shareholders
will be held on May 8, 2018 at 10:00 a.m. at
901 Frontenac Road
Naperville, Illinois
Chicago Rivet & Machine Co. 901 Frontenac Road Naperville, Illinois 60563 www.chicagorivet.com
Managements Report
on Financial Condition and Results of Operations
To Our Shareholders:
1
Managements Report
(Continued)
2
Managements Report
(Continued)
Respectfully,
John A. Morrissey | Michael J. Bourg | |
Chairman | President |
March 20, 2018
FORWARD-LOOKING STATEMENTS
This discussion contains certain forward-looking statements which are inherently subject to risks and uncertainties that may cause actual events to differ materially from those discussed herein. Factors which may cause such differences in events include, those disclosed under Risk Factors in our Annual Report on Form 10-K and in the other filings we make with the United States Securities and Exchange Commission. These factors, include among other things: conditions in the domestic automotive industry, upon which we rely for sales revenue, the intense competition in our markets, the concentration of our sales with a major customer, risks related to export sales, the price and availability of raw materials, labor relations issues, losses related to product liability, warranty and recall claims, costs relating to environmental laws and regulations, and the loss of the services of our key employees. Many of these factors are beyond our ability to control or predict. Readers are cautioned not to place undue reliance on these forward-looking statements. We undertake no obligation to publish revised forward-looking statements to reflect events or circumstances after the date hereof or to reflect the occurrence of unanticipated events.
3
Consolidated Balance Sheets
December 31 | 2017 | 2016 | ||||||
Assets |
||||||||
Current Assets |
||||||||
Cash and Cash Equivalents |
$ | 1,152,569 | $ | 353,475 | ||||
Certificates of Deposit |
7,810,000 | 8,059,000 | ||||||
Accounts Receivable Less allowances of $140,000 and $150,000 in 2017 and 2016, respectively |
5,326,650 | 5,323,519 | ||||||
Inventories, net |
4,528,100 | 4,537,693 | ||||||
Prepaid Income Taxes |
84,112 | 56,112 | ||||||
Other Current Assets |
357,918 | 423,952 | ||||||
|
|
|
|
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Total Current Assets |
19,259,349 | 18,753,751 | ||||||
Property, Plant and Equipment, net |
12,556,953 | 12,450,558 | ||||||
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|
|
|
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Total Assets |
$ | 31,816,302 | $ | 31,204,309 | ||||
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Liabilities and Shareholders Equity |
||||||||
Current Liabilities |
||||||||
Accounts Payable |
$ | 737,040 | $ | 703,467 | ||||
Accrued Wages and Salaries |
674,316 | 690,526 | ||||||
Other Accrued Expenses |
495,132 | 604,174 | ||||||
Unearned Revenue and Customer Deposits |
312,775 | 286,133 | ||||||
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|
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Total Current Liabilities |
2,219,263 | 2,284,300 | ||||||
Deferred Income Taxes, net |
737,084 | 1,028,084 | ||||||
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|
|
|
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Total Liabilities |
2,956,347 | 3,312,384 | ||||||
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|
|
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Commitments and Contingencies (Note 7) | ||||||||
Shareholders Equity |
||||||||
Preferred Stock, No Par Value, |
| | ||||||
500,000 Shares Authorized: None Outstanding |
||||||||
Common Stock, $1.00 Par Value, 4,000,000 Shares Authorized: 1,138,096 Shares Issued, 966,132 Shares Outstanding |
1,138,096 | 1,138,096 | ||||||
Additional Paid-in Capital |
447,134 | 447,134 | ||||||
Retained Earnings |
31,196,823 | 30,228,793 | ||||||
Treasury Stock, 171,964 Shares at cost |
(3,922,098 | ) | (3,922,098 | ) | ||||
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Total Shareholders Equity |
28,859,955 | 27,891,925 | ||||||
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Total Liabilities and Shareholders Equity |
$ | 31,816,302 | $ | 31,204,309 | ||||
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|
|
The accompanying notes are an integral part of the Consolidated Financial Statements.
4
Consolidated Statements of Income
For the Years Ended December 31 | 2017 | 2016 | ||||||
Net Sales |
$ | 35,764,714 | $ | 37,022,378 | ||||
Cost of Goods Sold |
27,850,992 | 27,980,217 | ||||||
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Gross Profit |
7,913,722 | 9,042,161 | ||||||
Selling and Administrative Expenses |
5,548,541 | 5,559,436 | ||||||
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|
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Operating Profit |
2,365,181 | 3,482,725 | ||||||
Other Income |
100,901 | 65,255 | ||||||
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Income Before Income Taxes |
2,466,082 | 3,547,980 | ||||||
Provision for Income Taxes |
387,000 | 1,191,000 | ||||||
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Net Income |
$ | 2,079,082 | $ | 2,356,980 | ||||
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Net Income Per Share |
$ | 2.15 | $ | 2.44 | ||||
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Consolidated Statements of Retained Earnings
For the Years Ended December 31 | 2017 | 2016 | ||||||
Retained Earnings at Beginning of Year |
$ | 30,228,793 | $ | 28,828,284 | ||||
Net Income |
2,079,082 | 2,356,980 | ||||||
Cash Dividends Paid, $1.15 and $.99 Per Share in 2017 and 2016, respectively |
(1,111,052 | ) | (956,471 | ) | ||||
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Retained Earnings at End of Year |
$ | 31,196,823 | $ | 30,228,793 | ||||
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The accompanying notes are an integral part of the Consolidated Financial Statements.
5
Consolidated Statements of Cash Flows
For the Years Ended December 31 | 2017 | 2016 | ||||||
Cash Flows from Operating Activities: |
||||||||
Net Income |
$ | 2,079,082 | $ | 2,356,980 | ||||
Adjustments to Reconcile Net Income to |
||||||||
Depreciation and Amortization |
1,231,546 | 1,242,357 | ||||||
(Gain) Loss on the Sale of Equipment |
(1,700 | ) | 29,658 | |||||
Deferred Income Taxes |
(291,000 | ) | 134,000 | |||||
Changes in Operating Assets and Liabilities: |
||||||||
Accounts Receivable, net |
(3,131 | ) | 114,813 | |||||
Inventories, net |
9,593 | 519 | ||||||
Other Current Assets |
38,034 | 177,001 | ||||||
Accounts Payable |
29,620 | (64,644 | ) | |||||
Accrued Wages and Salaries |
(16,210 | ) | 79,042 | |||||
Other Accrued Expenses |
(109,042 | ) | 138,512 | |||||
Unearned Revenue and Customer Deposits |
26,642 | (181,056 | ) | |||||
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Net Cash Provided by Operating Activities |
2,993,434 | 4,027,182 | ||||||
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Cash Flows from Investing Activities: |
||||||||
Capital Expenditures |
(1,333,988 | ) | (2,027,860 | ) | ||||
Proceeds from the Sale of Equipment |
1,700 | 3,730 | ||||||
Proceeds from Certificates of Deposit |
7,063,000 | 6,225,000 | ||||||
Purchases of Certificates of Deposit |
(6,814,000 | ) | (7,719,000 | ) | ||||
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Net Cash Used in Investing Activities |
(1,083,288 | ) | (3,518,130 | ) | ||||
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Cash Flows from Financing Activities: |
||||||||
Cash Dividends Paid |
(1,111,052 | ) | (956,471 | ) | ||||
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Net Cash Used in Financing Activities |
(1,111,052 | ) | (956,471 | ) | ||||
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Net Increase (Decrease) in Cash and Cash Equivalents |
799,094 | (447,419 | ) | |||||
Cash and Cash Equivalents: |
||||||||
Beginning of Year |
353,475 | 800,894 | ||||||
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End of Year |
$ | 1,152,569 | $ | 353,475 | ||||
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Net Cash Paid for Income Taxes |
$ | 706,000 | $ | 840,000 | ||||
Supplemental Schedule of Non-cash Investing Activities: |
||||||||
Capital Expenditures in Accounts Payable |
$ | 3,953 | $ | |
The accompanying notes are an integral part of the Consolidated Financial Statements.
6
Notes to Consolidated
Financial Statements
7
8
9
10
Report of Independent Registered Public Accounting Firm
To the Board of Directors and Shareholders of Chicago Rivet & Machine Co. Naperville, Illinois
Opinion on the Financial Statements
We have audited the accompanying consolidated balance sheets of Chicago Rivet & Machine Co. and subsidiary (the Company) as of December 31, 2017 and 2016, the related consolidated statements of income, retained earnings, and cash flows for each of the years then ended, and the related notes (collectively referred to as the financial statements). In our opinion, the financial statements present fairly, in all material respects, the financial position of the Company as of December 31, 2017 and 2016, and the results of its operations and its cash flows for the years then ended, in conformity with accounting principles generally accepted in the United States of America.
Basis for Opinion
These financial statements are the responsibility of the Companys management. Our responsibility is to express an opinion on the Companys financial statements based on our audits. We are a public accounting firm registered with the Public Company Accounting Oversight Board (United States) (PCAOB) and are required to be independent with respect to the Company in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.
We conducted our audits in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement, whether due to error or fraud. The Company is not required to have, nor were we engaged to perform, an audit of its internal control over financial reporting in accordance with the standards of the PCAOB. As part of our audits we are required to obtain an understanding of internal control over financial reporting but not for the purpose of expressing an opinion on the effectiveness of the Companys internal control over financial reporting. Accordingly, we express no such opinion in accordance with the standards of the PCAOB.
Our audits included performing procedures to assess the risks of material misstatement of the financial statements, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the financial statements. We believe that our audits provide a reasonable basis for our opinion.
Crowe Horwath LLP
We have served as the Companys auditor since 2014.
Oak Brook, Illinois
March 20, 2018
11
INFORMATION ON COMPANYS COMMON STOCK
The Companys common stock is traded on the NYSE American (trading privileges only, not registered).
The ticker symbol is CVR.
At December 31, 2017, there were approximately 160 shareholders of record.
The transfer agent and registrar for the Companys common stock is:
Continental Stock Transfer & Trust Company
1 State Street, 30th Floor
New York, New York 10004-1561
The following table shows the dividends declared and the quarterly high and low prices of the common stock for the last two years.
Dividends Declared |
Market Range | |||||||||||||||||||||||
Quarter |
2017 | 2016 | 2017 | 2016 | ||||||||||||||||||||
First* |
$ | .55 | $ | .43 | $ | 49.34 | $ | 36.93 | $ | 25.00 | $ | 23.10 | ||||||||||||
Second |
.20 | .18 | $ | 41.90 | $ | 36.02 | $ | 29.00 | $ | 23.66 | ||||||||||||||
Third |
.20 | .18 | $ | 37.35 | $ | 26.50 | $ | 29.59 | $ | 26.40 | ||||||||||||||
Fourth |
.20 | .20 | $ | 33.52 | $ | 28.90 | $ | 42.00 | $ | 26.05 |
* | Includes an extra dividend of $.35 and $.25 per share in 2017 and 2016, respectively. |
Chicago Rivet & Machine Co. 901 Frontenac Road Naperville, Illinois 60563 www.chicagorivet.com
12
Chicago Rivet & Machine Co. 901 Frontenac Road Naperville, Illinois 60563 www.chicagorivet.com