CHICAGO RIVET & MACHINE CO
For the period ended Sep 30, 2024. Filed Nov 12, 2024.
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A company's report for each of its first three quarters. The financial statements are not audited. It shows how the business has moved since the last annual report, and what management says changed.
Sep 30, 2024 · Filed Nov 12, 2024
CVR$10.51+0.1%Stored close · as of Nov 6, 2026
What changed in Management’s Discussion and Analysis?
Read the current filingPrevious report: 10-Q
Period ended 2024-06-30; filed 2024-08-14.
0001193125-24-200613
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsCurrent report: 10-Q
Period ended 2024-09-30; filed 2024-11-12.
0000950170-24-125575
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsThe baseline is this issuer’s latest earlier reporting period of the same form that was filed before the current report. A previous 10-Q is a different quarter, not a year-over-year comparison. Amendments are excluded.
Compared 20 previous paragraphs and 21 current paragraphs.
9 unchanged; 10 reworded; 2 added; 1 removed; 0 previous and 0 current paragraphs rearranged.
Tables are not compared: 0 previous and 0 current tables excluded. Dates, whitespace, punctuation and numbering changes are ignored; changes to financial figures remain significant.
A changed paragraph is not evidence that risk increased or decreased. An unchanged paragraph does not establish that risk stayed the same.
Added paragraphs (2)
Current report
Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations.
Current report
The Company's automotive fastener segment volumes have experienced a significant decline during 2024, when compared to 2023. This segment volume decline has mitigated our pricing relief efforts, productivity gains and overall operating profit improvement. The reduced automotive fastener segment volume has been driven primarily by overall inventory reductions from our largest automotive customers as light vehicle production was weak in the third quarter, declining by close to 5% globally. Non-automotive fastener and non-automotive assembly equipment segments continue to outpace prior period comparisons and we believe both represent future opportunities for growth and profitability. While we anticipate automotive fastener segment business conditions and volume demand for the remainder of 2024 to reflect the current trend, we expect to leverage our cost structure and improved operating efficiencies once these customer platform volumes return to normal levels. Additionally, we intend to continue to seek to drive growth in our non-automotive fastener and assembly equipment segments.
Removed paragraphs (1)
Previous report
Automotive and non-automotive fastener segment volumes continued to be a headwind in the second quarter. However, pricing relief obtained in previous quarters began to materialize and, coupled with improved production gains, we experienced a significant turnaround in segment operating profit during the quarter. Assembly equipment revenues and operating profit continue to outpace the prior period comparisons for both the automotive and non-automotive segments. Based on the current economic environment, we do not anticipate that overall business conditions and subsequent demand from our core customer base during the second half of the year will be markedly different than during the first half of the year. As we continue to align our cost structure and improve our operating efficiencies, we are focused on leveraging our capabilities towards delivering improved operating results and identifying new growth opportunities.
Reworded paragraphs (10)
Previous wording
Net sales for the second quarter of 2024 were $8,059,477 compared to $8,050,931 in the second quarter of 2023, an increase of $8,546. Assembly equipment segment sales increased $460,109 which slightly offset the $451,563 decline in fastener segment sales for the current year quarter. While overall net sales were essentially flat, operating profit for both the fastener and assembly equipment segments improved in the current quarter. As a result, the Company recorded net income of $142,141, or $0.15 per share, compared to a net loss of $(1,311,506), or $(1.36) per share, in the second quarter of 2023. During the second quarter of 2024, a regular quarterly dividend of $0.10 per share was paid on June 20, 2024, to shareholders of record on June 5, 2024.
Current wording
Net sales for the third quarter of 2024 were $6,969,921 compared to $7,946,172 in the third quarter of 2023, a decrease of $976,251 or 12.3%. Assembly equipment segment sales increased $73,874 which slightly offset the $1,050,125 decline in fastener segment sales for the current year quarter. Although overall net sales were down compared to the third quarter of 2023, gross margins for both the fastener and assembly equipment segments improved in the current quarter. This improvement resulted from the improved pricing that the Company obtained earlier in the year, a reduction in certain operating costs and improved operating efficiency. However, the lower revenue level, deferred tax expense of $651,196 discussed in Note 5 above, and certain selling and administrative expenses had a negative impact on earnings for the third quarter of 2024. As a result, the Company recorded a net loss of ($1,446,621), or ($1.50) per share for the third quarter 2024, compared to a net loss of $(964,042), or $(1.00) per share, in the third quarter of 2023. During the third quarter of 2024, a regular quarterly dividend of $0.10 per share was paid on September 20, 2024, to shareholders of record on September 5, 2024.
Previous wording
For the first half of 2024, net sales totaled $15,912,658 compared to $16,780,565 in the first half of 2023, a decrease of $867,998, or 5.2%. The net loss for the first half of 2024 was ($555,863), or ($0.58) per share, compared to a net loss of ($1,894,643) or ($1.96) per share, for the same period in 2023.
Current wording
For the first nine months of 2024, net sales totaled $22,882,579 compared to $24,726,828 in the first nine months of 2023, a decrease of $1,844,249, or 7.5%. The net loss for the first nine months of 2024 was ($2,002,484), or ($2.07) per share, compared to a net loss of ($2,858,685) or ($2.96) per share, for the same period in 2023.
Previous wording
Fastener segment revenues were $6,909,550 in the second quarter of 2024 compared to $7,361,113 in the second quarter of 2023, a decline of $451,563 or 6.1%. The automotive sector is the primary market for our fastener segment products, and sales to automotive customers were $4,842,415 in the second quarter this year compared to $4,959,381 in the second quarter of 2023, a decrease of $116,966, or 2.4%. Additionally, fastener segment sales to non-automotive customers, including those in the construction and electronics industries, were $2,067,135 in the second quarter of this year compared to $2,401,732 in the second quarter of 2023, a decline of $334,597 or 13.9%. Fastener segment gross margins were $1,033,755 in the second quarter of 2024 compared to $(442,951) in the second quarter of 2023, an increase of $1,476,706, or 333.4%. Lower volumes were offset by price increases, improved production efficiencies, and reduced expediting expenses which improved gross margins in this segment during the quarter.
Current wording
Fastener segment revenues were $5,927,316 in the third quarter of 2024 compared to $6,977,441 in the third quarter of 2023, a decline of $1,050,125 or 15.1%. The automotive sector is the primary market for our fastener segment products, and sales to automotive customers were $3,578,390 in the third quarter this year compared to $5,184,547 in the third quarter of 2023, a decrease of $1,606,157, or 31.0%. Additionally, fastener segment sales to non-automotive customers, including those in the construction and electronics industries, were $2,348,926 in the third quarter of this year compared to $1,792,894 in the third quarter of 2023, an increase of $556,062 or 31.0%. Fastener segment gross margins were $703,955 in the third quarter of 2024 compared to $(161,831) in the third quarter of 2023, an increase of $865,786. Despite significantly lower volumes from the automotive fastener segment, this gross margin improvement is due, as noted above, to price increases secured since the end of the third quarter of 2023, certain operating cost reductions and improved efficiency.
Previous wording
For the first six months of 2024, fastener segment revenues were $13,633,404 compared to $15,217,926 in the first half of 2023, a decline of $1,584,522, or 10.4%. On a year-to-date basis fastener segment operating profit was $99,288 compared to a net loss of ($1,521,719) in the first half of 2023, an increase of $1,621,007.
Current wording
For the first nine months of 2024, fastener segment revenues were $19,560,720 compared to $22,195,367 in the first nine months of 2023, a decline of $2,634,647, or 11.9%. On a year-to-date basis fastener segment operating profit was $195,190 compared to an operating loss of $(353,158) in the first nine months of 2023, an increase of $584,348. This gross margin improvement was due to price increases, operational efficiencies and cost reduction projects.
Previous wording
Assembly equipment segment revenues were $1,149,927 in the second quarter of 2024 compared to $689,818 in the second quarter of 2023, an increase of $460,109, or 66.7%. Both non-automotive and automotive assembly equipment revenue increased revenue in this segment by $390,289 and $69,820 respectively over the same period last year. The increase in sales contributed to a $267,226, or 234.6%, improvement in segment gross margin, from $113,915 in 2023 to $381,141 in 2024.
Current wording
Assembly equipment segment revenues were $1,042,605 in the third quarter of 2024 compared to $968,731 in the third quarter of 2023, an increase of $73,874, or 7.6%. Both automotive and non-automotive assembly equipment revenue increased in this segment by $2,023 and $71,851 respectively over the same period last year. The increase in sales contributed to a $508,177, or 250.4%, improvement in segment gross margin, from $202,984 in 2023 to $711,161 in 2024.
Previous wording
For the first six months of 2024, assembly equipment revenues were $2,279,254 compared to $1,562,730 in the first half of 2023, an increase of $716,524, or 45.9%. During the first six months of 2024, assembly equipment operating profit was $686,541 compared to $276,481 in the first six months of 2023, an increase of $410,060.
Current wording
For the first nine months of 2024, assembly equipment revenues were $3,321,859 compared to $2,531,461 in the first nine months of 2023, an increase of $790,398, or 31.2%. During the first nine months of 2024, assembly equipment operating profit was $575,173 compared to $542,778 in the first nine months of 2023, an increase of $32,395.
Previous wording
Selling and administrative expenses during the second quarter of 2024 were $1,307,887 compared to $1,359,465 recorded in the second quarter of 2023, a decrease of $51,578, or 3.8%. Reduced commissions of $62,909 were partially offset by higher professional fees for the period. Selling and administrative expenses were 16.2% of net sales in the second quarter of 2024 compared to 16.9% in the second quarter of 2023. For the first six months of 2024, selling and administrative expenses were $2,955,752 compared to $2,617,160 in the first half of 2023, an increase of $338,592.
Current wording
Selling and administrative expenses during the third quarter of 2024 were $1,518,557 compared to $1,273,175 recorded in the third quarter of 2023, an increase of $245,382, or 19.3% primarily due to higher professional fees and partially offset by reduced commissions of $79,761 for the period. Selling and administrative expenses were 21.8% of net sales in the third quarter of 2024 compared to 16.0% in the second quarter of 2023. For the first nine months of 2024, selling and administrative expenses were $4,474,310 compared to $3,890,335 for the first nine months of 2023, an increase of $583,975. The Company believes that it has made substantial progress in continuing to implement its plans to reduce costs and improve efficiency, and as the Company completes activities relating to the closure of the Albia facility, the Company plans to focus on reducing certain selling and administrative expenses.
Previous wording
Other income in the second quarter of 2024 was $45,955 compared to $22,995 in the second quarter of 2023. Other income for the first six months of 2024 was $74,424, compared to $66,050 in the first six months of 2023. Other income is primarily comprised of interest income, which increased during the current year due to higher interest rates earned on such balances.
Current wording
Other income in the third quarter of 2024 was $28,146 compared to $16,980 in the third quarter of 2023. Other income for the first nine months of 2024 was $102,570, compared to $83,030 in the first nine months of 2023. Other income is primarily comprised of interest income, which increased during the current year due to higher interest rates earned on such balances.
Previous wording
The Company’s effective tax rates were approximately 7.4% and 21.3% for the second quarter of 2024 and 2023, respectively, and 22.9% and 21.1% for the six months ended June 30, 2024 and 2023, respectively.
Current wording
The Company’s effective tax rates were approximately (81.9)% and 20.7% for the third quarter of 2024 and 2023, respectively, and (32.0)% and 23.2% for the nine months ended September 30, 2024 and 2023, respectively.
Previous wording
Working capital was $13,368,281 as of June 30, 2024, compared to $13,976,864 at the beginning of the year, a decline of $608,583. Contributing to that decline were capital expenditures during the first six months of $398,683, which primarily consisted of equipment used in production activities, and dividends paid of $193,226. The net result of these changes and other cash flow activity was to leave cash, cash equivalents and short-term investments at $2,627,438 as of June 30, 2024, compared to $3,158,195 as of the beginning of the year. Management believes that current cash, cash equivalents and operating cash flow will provide adequate working capital for the next twelve months.
Current wording
Working capital was $12,838,707 as of September 30, 2024, compared to $13,976,864 at the beginning of the year, a decline of $2,190,540. Contributing to that decline were capital expenditures during the first nine months of $709,396, which primarily consisted of equipment used in production activities, and dividends paid of $96,613. The net result of these changes and other cash flow activity was to leave cash, cash equivalents and short-term investments at $2,161,917 as of September 30, 2024, compared to $3,158,195 as of the beginning of the year. Management believes that current cash, cash equivalents and operating cash flow will provide adequate working capital for the next twelve months.