CHICAGO RIVET & MACHINE CO
For the period ended Jun 30, 2025. Filed Aug 8, 2025.
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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.
Jun 30, 2025 · Filed Aug 8, 2025
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 2025-03-31; filed 2025-05-09.
0000950170-25-067950
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsCurrent report: 10-Q
Period ended 2025-06-30; filed 2025-08-08.
0000950170-25-105683
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 18 previous paragraphs and 19 current paragraphs.
6 unchanged; 10 reworded; 3 added; 1 removed; 1 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 (3)
Current report
Sales for the three months ended June 30, 2025 were $7,298,077 compared to $8,059,477 for the three months ended June 30, 2024, a decrease of 761,400 or 9.4%. Sales for the six months ended June 30, 2025 were $14,543,712 compared to $15,912,658 for the six months ended June 30, 2024, a decrease of $1,368,946 or 8.6%. The decline in sales was driven primarily by lower volumes from our automotive customers, which volumes represent the majority of our revenue base. Automotive production levels remained pressured during the quarter due to persistent industry challenges, including softening consumer demand, the impact of recent tariff announcements, and continued global economic uncertainty. In particular, H & L Tool experienced a significant decline in sales volume, reflecting reduced schedules from key automotive customers.
Current report
Gross margins for the three months ended June 30, 2025 were $975,062 compared to $1,415,446 for the three months ended June 30, 2024, a decrease of $440,384 or 31.1%. Gross margins for the six months ended June 30, 2025 were $2,632,803 compared to $2,160,008 for the six months ended June 30, 2024, an increase of $472,795 or 21.9%. The year-over-year decline in gross margin for the second quarter reflects the impact of lower production volumes, which reduced operating leverage, particularly at H & L Tool, where more than 80% of revenue is tied to automotive supply contracts. When production levels drop, it becomes more difficult to absorb fixed costs such as labor, facility expenses, and depreciation, all of which weigh heavily on gross margin. Although we secured price increases in 2024 and 2025, the timing lag between when costs increase and when new pricing takes effect has continued to challenge profitability. Inflationary pressures on wages, transportation, energy, and outsourced processing services have remained elevated and are no longer viewed as short-term or transitory.
Current report
Net loss for the three months ended June 30, 2025 was $394,980 or $0.41 per share compared to net income of $142,141 or $0.15 per share for the three months ended June 30, 2024, a decrease of $537,121 or 377.9%. Net income for the six months ended June 30, 2025 was $6,042 or $0.01 per share compared to a net loss of $555,863 or $0.58 per share for the six months ended June 30, 2024, an increase of $561,905 or 101.1%. The net loss for the second quarter was primarily due to lower sales volumes and related decline in gross margin, as described above. The most significant impact occurred at H & L Tool, where the combination of reduced volumes and continued high operating costs contributed significantly to the loss for the quarter to date. Despite the challenging quarter, year-to-date results improved meaningfully compared to the prior year. This reflects stronger performance earlier in the year, the benefit of previously implemented price increases and the sale of Albia manufacturing facility, which resulted in the recording of a one-time gain of $339,520. It also highlights the Company’s progress in managing cost pressures and stabilizing operations in a difficult environment. Looking ahead, we remain focused on improving profitability through a combination of pricing strategies, operational efficiencies, and targeted customer engagement. However, we recognize that industry headwinds including inflation, supply chain complexity, and changing customer demand patterns may continue to affect our near-term financial performance.
Removed paragraphs (1)
Previous report
Sales for the three months ended March 31, 2025 were $7,245,635 compared to $7,853,181 for the three months ended March 31, 2024, a decrease of $607,546 or 7.7%. Sales for both the fastener and assembly equipment segments decreased in the three months ended March 31, 2025 by $564,883 or 8.4%, and $42,663 or 3.8%, respectively, compared to the three months ended March 31, 2024. Although overall sales were down, gross margins improved year-over-year by $612,530 in the fastener segment, and $300,649, in the assembly equipment segment. The improvement in gross margins was driven by the continued implementation of a revised pricing structure started in 2024, reduction in certain operating costs, and increased efficiency following the consolidation of the Albia operations into the Tyrone manufacturing facility, which lowered production costs through enhanced economies of scale. In addition to the improvement in gross margins, year-over-year selling and administrative expenses were lower by $60,298 reflecting efforts at continued cost discipline and operational efficiency. Other income was also higher by $322,738 primarily driven by the sale of the Albia manufacturing facility which resulted in the recording of a one-time gain of $339,520. These factors collectively contributed to a net income of $401,022 or $0.42 per share in the three months ended March 31, 2025, compared to a net loss of $698,004 or $0.72 per share in the three months ended March 31, 2024
Reworded paragraphs (10)
Previous wording
Fastener segment sales were $6,158,971 for the three months ended March 31, 2025 compared to $6,723,854 for the three months ended March 31, 2024, a decline of $564,883 or 8.4%. The automotive sector is the primary market for our fastener segment products, and sales to automotive customers were $3,798,658 for the three months ended March 31, 2025 compared to $4,629,190 for the three months ended March 31, 2024, a decrease of $830,532, or 17.9% primarily due to a slowdown in North American vehicle production and continued volatility across the Midwest automotive manufacturing sector. Industry-wide production fell sharply in January 2025, leading to reduced order volumes from key original equipment manufacturers. In addition, elevated interest rates and ongoing economic uncertainty contributed to softer consumer demand, prompting inventory adjustments and cautious procurement behavior among our automotive customers. In contrast, fastener segment sales to non-automotive customers, including those in the construction and electronics industries, were $2,360,313 for the three months ended March 31, 2025 compared to $2,094,564 for the three months ended March 31, 2024, an increase of $265,749 or 12.7% reflecting the successful execution of a strategic pivot by our sales team. In response to softening demand in the automotive sector, the sales team proactively expanded outreach to customers in industrial, construction, and consumer goods markets, which are segments that have historically demonstrated more stable demand profiles amid broader economic headwinds.
Current wording
Fastener segment sales were $6,397,215 for the three months ended June 30, 2025 compared to $6,909,550 for the three months ended June 30, 2024, a decline of $512,335 or 7.4%. Fastener segment sales were $12,556,186 for the six months ended June 30, 2025 compared to $13,633,404 for the six months ended June 30, 2024, a decline of $1,077,218 or 7.9%. The automotive sector is the primary market for our fastener segment products, and sales to automotive customers were $3,849,079 for the three months ended June 30, 2025 compared to $4,842,415 for the three months ended June 30, 2024, a decrease of $993,336, or 20.5%. Sales to automotive customers were $7,647,737 for the six months ended June 30, 2025 compared to $9,471,706 for the six months ended June 30, 2024, a decline of $1,823,969 or 19.3% primarily due to a slowdown in North American vehicle production and continued volatility across the Midwest automotive manufacturing sector. Industry-wide production fell sharply in January 2025, leading to reduced order volumes from key original equipment manufacturers. In addition, elevated interest rates and ongoing economic uncertainty contributed to softer consumer demand, prompting inventory adjustments and cautious procurement behavior among our automotive customers. In contrast, fastener segment sales to non-automotive customers, including those in the construction and electronics industries, were $2,548,136 for the three months ended June 30, 2025 compared to $2,067,135 for the three months ended June 30, 2024, an increase of $481,001 or 23.3%, and $4,908,449 for the six months ended June 30, 2025 compared to $4,161,698 for the six months ended June 30, 2024, an increase of $746,751 or 17.9%, reflecting the successful execution of a strategic pivot by our sales team. In response to softening demand in the automotive sector, the sales team proactively expanded outreach to customers in industrial, construction, and consumer goods markets, which are segments that have historically demonstrated more stable demand profiles amid broader economic headwinds.
Previous wording
Assembly equipment segment sales were $1,086,664 for the three months ended March 31, 2025 compared to $1,129,327 for the three months ended March 31, 2024, a decrease of $42,663, or 3.8%. Both automotive and non-automotive assembly equipment sales decreased in this segment by $6,554 and $36,109, respectively, year-over-year. These modest declines reflect timing-related factors in customer purchasing cycles as well as project delays stemming from cautious capital investment trends across multiple industries. Although sales declined year-over-year, the assembly equipment gross margin increased by $300,649 during the period. This margin expansion reflects the Company’s ongoing efforts to enhance operational efficiency and reduce its cost structure, with the consolidation of the Albia operations into the Tyrone manufacturing facility yielding meaningful cost savings through streamlined workflows, increased capacity utilization, and reduced overhead.
Current wording
Assembly equipment segment sales were $900,862 for the three months ended June 30, 2025 compared to $1,149,927 for the three months ended June 30, 2024, a decrease of $249,065, or 21.7%. Assembly equipment segment sales were $1,987,526 for the six months ended June 30, 2025 compared to $2,279,254 for the six months ended June 30, 2024, a decrease of $291,728 or 12.8%. Both automotive and non-automotive assembly equipment sales decreased in this segment. These declines reflect timing-related factors in customer purchasing cycles as well as project delays stemming from cautious capital investment trends across multiple industries. Although sales declined year-over-year, the assembly equipment gross margin increased by $263,381 during the year-to-date period. This margin expansion reflects the Company’s ongoing efforts to enhance operational efficiency and reduce its cost structure, with the consolidation of the Albia operations into the Tyrone manufacturing facility yielding meaningful cost savings through streamlined workflows, increased capacity utilization, and reduced overhead.
Previous wording
Selling and administrative expenses were $1,587,567 for the three months ended March 31, 2025 compared to $1,647,865 for the three months ended March 31, 2024, a decrease of $60,298, or 3.7%, primarily due to higher professional fees more than offset by reduced salaries, commissions and provision for contingencies. Selling and administrative expenses were 21.9% and 21.0% of sales in the three months ended March 31, 2025 and 2024, respectively. 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 has now completed activities relating to the closure of the Albia facility, the Company plans to focus specifically on reducing certain selling and administrative expenses.
Current wording
Selling and administrative expenses were $1,392,493 for the three months ended June 30, 2025 compared to $1,307,887 for the three months ended June 30, 2024, an increase of $84,606 or 6.5%. Selling and administrative expenses were $2,980,060 for the six months ended June 30, 2025 compared to $2,955,752 for the six months ended June 30, 2024, an increase of $24,308, or 0.8%, primarily due to higher professional fees partially offset by reduced salaries, commissions and provision for contingencies. Selling and administrative expenses were 19.1% and 16.2% of sales in the three months ended June 30, 2025 and 2024, respectively, and 20.5% and 18.6% of sales in the six months ended June 30, 2025 and 2024, respectively. The Company believes that it has made substantial progress in continuing to implement its plans to reduce costs and improve efficiency and will continue to do so for the remainder of the year.
Previous wording
Other income for the three months ended March 31, 2025 was $351,207 compared to $28,469 for the three months ended March 31, 2024, an increase of $322,738 primarily driven by the sale of the Albia manufacturing facility which resulted in the recording of a one-time gain of $339,520. Other income was also comprised of interest income, which increased during the current quarter due to higher interest rates earned on short-term investments.
Current wording
Other income for the three months ended June 30, 2025 was $2,383 compared to $45,955 for the three months ended June 30, 2024, a decrease of $43,572 or 94.8%. The decrease was primarily attributable to lower interest income earned on short-term investments, which declined due to a reduction in the average balance of such investments during the current period. Other income for the six months ended June 30, 2025 was $353,590 compared to $74,424 for the six months ended June 30, 2024, an increase of $279,166 primarily driven by the sale of the Albia manufacturing facility which resulted in the recording of a one-time gain of $339,520.
Previous wording
The Company’s effective tax rates were approximately 4.9% and 20.2% for the three months ended March 31, 2025 and 2024, respectively. See Note 5. Income taxes to the Condensed Consolidated Financial Statements included herein for additional information.
Current wording
The Company’s effective tax rates were approximately 4.6% and 7.4% for the six months ended June 30, 2025 and 2024, respectively. See Note 5. Income taxes to the Condensed Consolidated Financial Statements included herein for additional information.
Previous wording
Working capital was $10,730,266 as of March 31, 2025, compared to $10,371,215 at the beginning of the year, an increase of $359,051, or 3.5%.
Current wording
Working capital was $11,059,078 as of June 30, 2025, compared to $10,371,215 at the beginning of the year, an increase of $687,863, or 6.6%.
Previous wording
The Company has incurred significant recurring operating losses primarily driven by continuous decline in revenues, recurring negative cash flows from operations and continued reduction in liquidity. The Company reported operating income of $70,174 and operating loss of $903,303 for the three months ended March 31, 2025 and 2024, respectively. The Company’s liquid assets at March 31, 2025 consist of cash and cash equivalents totaling $765,645. The Company’s declining revenues, recurring operating losses and negative cash flows, and continued reduction in liquidity, raise substantial doubt about the Company's ability to continue as a going concern within one year after the issuance date of these financial statements. In response, the Company has taken various strategic actions including (i) investing resources in the Company's sales efforts to increase revenues, including the recent hiring on May 1, 2025 of Mr. James T. Tanner as the Company's new Senior Vice President of Sales and Marketing, effective immediately. Mr. Tanner brings over 30 years of sales and leadership experience in manufacturing and spent over 10 years in the fastener industry, (ii) executing on the sale of Albia real estate in February 2025, which generated net cash proceeds of approximately $678,000, and the October 2024 consolidation of the Albia operations into the Tyrone manufacturing facility, enhancing economies of scale and contributing towards improved margins from cost reductions, and (iii) entering into a one-year, $3,000,000 operating credit agreement, renewable annually, and consisting of a (a) $2,500,000 revolving line of credit, and (b) $500,000 non-revolving line of credit, bearing interest at a fluctuating rate per annum equal to 1% plus the applicable prime rate, with a floor of 7% (the loan can be prepaid without penalty). The Company will continue to seek to enhance its sales efforts to further improve revenue, improve operating efficiency and enhance liquidity. The Company believes that if it successfully implements the foregoing strategic actions, it will mitigate the factors giving rise to substantial doubt, however, there is no guarantee that the Company will successfully implement these strategic actions. As a result, there remains substantial doubt regarding the Company’s ability to continue as a going concern.
Current wording
The Company has incurred significant recurring operating losses primarily driven by continuous decline in revenues, recurring negative cash flows from operations and continued reduction in liquidity. The Company reported operating losses of $417,431 and operating income of $107,559 for the three months ended June 30, 2025 and 2024, respectively. The Company reported operating losses of $347,257 and $795,744 for the six months ended June 30, 2025 and 2024, respectively. The Company’s liquid assets at June 30, 2025 consisted of cash and cash equivalents totaling $1,213,830. The Company’s declining revenues, recurring operating losses and negative cash flows, and continued reduction in liquidity, raise substantial doubt about the Company's ability to continue as a going concern within one year after the issuance date of these financial statements. In response, the Company has taken various strategic actions including (i) investing resources in the Company's sales efforts to increase revenues, including the recent hiring of Mr. James T. Tanner as the Company's new Senior Vice President of Sales and Marketing. Mr. Tanner brings over 30 years of sales and leadership experience in manufacturing and spent over 10 years in the fastener industry, (ii) executing on the sale of Albia real estate in February 2025, which generated net cash proceeds of approximately $678,000, and the October 2024 consolidation of the Albia operations into the Tyrone manufacturing facility, enhancing economies of scale and contributing towards improved margins from cost reductions, and (iii) entering into a one-year, $3,000,000 operating credit agreement, renewable annually, and consisting of a (a) $2,500,000 revolving line of credit, and (b) $500,000 non-revolving line of credit, bearing interest at a fluctuating rate per annum equal to 1% plus the applicable prime rate, with a floor of 7% (the loan can be prepaid without penalty). The Company will continue to seek to enhance its sales efforts to further improve revenue, improve operating efficiency and enhance liquidity. The Company believes that if it successfully implements the foregoing strategic actions, it will mitigate the factors giving rise to substantial doubt, however, there is no guarantee that the Company will successfully implement these strategic actions. As a result, there remains substantial doubt regarding the Company’s ability to continue as a going concern.
Previous wording
As of March 31, 2025, the Company had an aggregate borrowing capacity under its committed revolving credit facility of $2,500,000. This facility includes certain financial covenants such as minimum profitability for the twelve months ending December 31, 2025, and minimum tangible net worth. As of March 31, 2025 the Company was in compliance with all such financial covenants. See Note 10. Debt to the Condensed Consolidated Financial Statements included herein for additional information.
Current wording
On May 2, 2025, the Company borrowed $500,000 under its revolving line of credit to support working capital and general corporate purposes. As of June 30, 2025, the Company had an aggregate borrowing capacity under its committed revolving credit facility of $2,500,000. This facility includes certain financial covenants such as minimum profitability for the twelve months ending December 31, 2025, and minimum tangible net worth. As of June 30, 2025 the Company was in compliance with all such financial covenants. See Note 10. Debt to the Condensed Consolidated Financial Statements included herein for additional information.
Previous wording
The Company also had outstanding total operating lease obligations of $429,810 of which $67,526 were classified as current within Other current liabilities in the Condensed Consolidated Balance Sheets. See Note 7. Leases to the Condensed Consolidated Financial Statements included herein for additional information.
Current wording
The Company also had outstanding total operating lease obligations of $439,008 of which $93,533 were classified as current within Other current liabilities in the Condensed Consolidated Balance Sheets at June 30, 2025. See Note 7. Leases to the Condensed Consolidated Financial Statements included herein for additional information.
Previous wording
With respect to the Outlook for 2025, the economic environment remains challenging. Our order volume showed improvement in the first quarter of 2025 compared to the fourth quarter of 2024 but it is not yet at the levels we experienced in the first quarter of 2024. Significant uncertainty remains in the manufacturing sector as companies like ours continue to navigate the potential impacts of proposed tariffs and numerous market factors that may impact our business and the business of our customers in the coming year. In particular, we have taken the uncertainty created by tariffs as an opportunity to actively engage with both current and potential customers on ways in which we can work with them to help meet their needs in the current economic environment. We intend to remain actively engaged with current and potential customers to help strengthen relationships with existing customers and build relationships with new customers. In addition, the Company believes the actions taken in 2024 to reduce costs have better positioned the Company to manage the uncertainty noted above, and we will continue to seek efficiency improvements in our operations as well as appropriate price adjustments from customers while aggressively pursuing new sales opportunities to drive volume back to historic levels. We will also continue to actively monitor and analyze potential impacts from tariffs and other external factors so that we are positioned to take actions promptly and as necessary to address such potential impacts. We believe that our recent efficiency improvements and our focus on driving new sales, as well as our long term operating history in a very competitive global marketplace, quality products, and customer service, will provide the foundation for improved operating results in the future.
Current wording
With respect to the Outlook for 2025, the economic environment remains challenging. Our order volume showed improvement in the second quarter of 2025 compared to the fourth quarter of 2024 but it is not yet at the levels we experienced in the second quarter of 2024. Significant uncertainty remains in the manufacturing sector as companies like ours continue to navigate the potential impacts of proposed tariffs and numerous market factors that may impact our business and the business of our customers in the coming year. In particular, we have taken the uncertainty created by tariffs as an opportunity to actively engage with both current and potential customers on ways in which we can work with them to help meet their needs in the current economic environment. We intend to remain actively engaged with current and potential customers to help strengthen relationships with existing customers and build relationships with new customers. In addition, the Company believes the actions taken in 2024 to reduce costs have better positioned the Company to manage the uncertainty noted above, and we will continue to seek efficiency improvements in our operations as well as appropriate price adjustments from customers while aggressively pursuing new sales opportunities to drive volume back to historic levels. We will also continue to actively monitor and analyze potential impacts from tariffs and other external factors so that we are positioned to take actions promptly and as necessary to address such potential impacts. We believe that our recent efficiency improvements and our focus on driving new sales, as well as our long term operating history in a very competitive global marketplace, quality products, and customer service, will provide the foundation for improved operating results in the future.
Rearranged previous paragraphs (1)
Previous report — wording carried elsewhere
On May 2, 2025, the Company borrowed $500,000 under its revolving line of credit to support working capital and general corporate purposes.