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CHICAGO RIVET & MACHINE CO - Quarter Report: 2018 March (Form 10-Q)

10-Q
Table of Contents

 

 

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, DC 20549

 

 

FORM 10-Q

 

 

(Mark One)

QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended March 31, 2018

OR

 

TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from                      to                     

Commission file number 000-01227

 

 

Chicago Rivet & Machine Co.

(Exact Name of Registrant as Specified in Its Charter)

 

 

 

Illinois   36-0904920

(State or Other Jurisdiction of

Incorporation or Organization)

 

(I.R.S. Employer

Identification No.)

901 Frontenac Road, Naperville, Illinois   60563
(Address of Principal Executive Offices)   (Zip Code)

(630) 357-8500

Registrant’s Telephone Number, Including Area Code

 

 

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  ☒    No  ☐

Indicate by check mark whether the registrant has submitted electronically and posted on its corporate website, if any, every interactive data file required to be submitted and posted pursuant to Rule 405 of Regulation S-T (section 232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files).    Yes  ☒    No  ☐

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company” and “emerging growth company” in Rule 12b-2 of the Exchange Act. (Check one):

 

Large accelerated filer      Accelerated filer  
Non-accelerated filer   ☐  (Do not check if smaller reporting company)    Smaller reporting company  
     Emerging growth company  

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.  ☐

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).    Yes  ☐    No  ☒

As of May 1, 2018, there were 966,132 shares of the registrant’s common stock outstanding.

 

 

 


Table of Contents

CHICAGO RIVET & MACHINE CO.

INDEX

 

         Page  

PART I.

 

FINANCIAL INFORMATION (Unaudited)

  

Condensed Consolidated Balance Sheets at March  31, 2018 and December 31, 2017

     2-3  

Condensed Consolidated Statements of Income for the Three Months Ended March 31, 2018 and 2017

     4  

Condensed Consolidated Statements of Retained Earnings for the Three Months Ended March 31, 2018 and 2017

     5  

Condensed Consolidated Statements of Cash Flows for the Three Months Ended March 31, 2018 and 2017

     6  

Notes to the Condensed Consolidated Financial Statements

     7-9  

Management’s Discussion and Analysis of Financial Condition and Results of Operations

     10-11  

Controls and Procedures

     12  

PART II.

 

OTHER INFORMATION

     13  

 

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Item 1. Financial Statements.

CHICAGO RIVET & MACHINE CO.

Condensed Consolidated Balance Sheets

March 31, 2018 and December 31, 2017

 

     March 31,
2018
     December 31,
2017
 
     (Unaudited)         
Assets      

Current Assets:

     

Cash and cash equivalents

   $ 898,643      $ 1,152,569  

Certificates of deposit

     7,561,000        7,810,000  

Accounts receivable - Less allowances of $140,000

     6,754,505        5,326,650  

Inventories, net

     4,596,678        4,528,100  

Prepaid income taxes

     —          84,112  

Other current assets

     339,131        357,918  
  

 

 

    

 

 

 

Total current assets

     20,149,957        19,259,349  
  

 

 

    

 

 

 

Property, Plant and Equipment:

     

Land and improvements

     1,535,434        1,535,434  

Buildings and improvements

     8,039,831        8,039,831  

Production equipment and other

     34,824,982        34,607,507  
  

 

 

    

 

 

 
     44,400,247        44,182,772  

Less accumulated depreciation

     31,943,387        31,625,819  
  

 

 

    

 

 

 

Net property, plant and equipment

     12,456,860        12,556,953  
  

 

 

    

 

 

 

Total assets

   $ 32,606,817      $ 31,816,302  
  

 

 

    

 

 

 

See Notes to the Condensed Consolidated Financial Statements

 

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CHICAGO RIVET & MACHINE CO.

Condensed Consolidated Balance Sheets

March 31, 2018 and December 31, 2017

 

     March 31,
2018
    December 31,
2017
 
     (Unaudited)        
Liabilities and Shareholders’ Equity     

Current Liabilities:

    

Accounts payable

   $ 1,647,297     $ 737,040  

Accrued wages and salaries

     659,681       674,316  

Other accrued expenses

     427,686       495,132  

Unearned revenue and customer deposits

     74,053       312,775  
  

 

 

   

 

 

 

Total current liabilities

     2,808,717       2,219,263  

Deferred income taxes

     723,084       737,084  
  

 

 

   

 

 

 

Total liabilities

     3,531,801       2,956,347  
  

 

 

   

 

 

 

Commitments and contingencies (Note 3)

    

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

     31,411,884       31,196,823  

Treasury stock, 171,964 shares at cost

     (3,922,098     (3,922,098
  

 

 

   

 

 

 

Total shareholders’ equity

     29,075,016       28,859,955  
  

 

 

   

 

 

 

Total liabilities and shareholders’ equity

   $ 32,606,817     $ 31,816,302  
  

 

 

   

 

 

 

See Notes to the Condensed Consolidated Financial Statements

 

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CHICAGO RIVET & MACHINE CO.

Condensed Consolidated Statements of Income

For the Three Months Ended March 31, 2018 and 2017

(Unaudited)

 

     2018      2017  

Net sales

   $ 10,011,641      $ 9,483,327  

Cost of goods sold

     7,668,636        7,226,816  
  

 

 

    

 

 

 

Gross profit

     2,343,005        2,256,511  

Selling and administrative expenses

     1,464,718        1,506,272  
  

 

 

    

 

 

 

Operating profit

     878,287        750,239  

Other income

     33,501        20,683  
  

 

 

    

 

 

 

Income before income taxes

     911,788        770,922  

Provision for income taxes

     204,000        260,000  
  

 

 

    

 

 

 

Net income

   $ 707,788      $ 510,922  
  

 

 

    

 

 

 

Per share data, basic and diluted:

     

Net income per share

   $ 0.73      $ 0.53  
  

 

 

    

 

 

 

Average common shares outstanding

     966,132        966,132  
  

 

 

    

 

 

 

Cash dividends declared per share

   $ 0.51      $ 0.55  
  

 

 

    

 

 

 

See Notes to the Condensed Consolidated Financial Statements

 

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CHICAGO RIVET & MACHINE CO.

Condensed Consolidated Statements of Retained Earnings

For the Three Months Ended March 31, 2018 and 2017

(Unaudited)

 

     2018     2017  

Retained earnings at beginning of period

   $ 31,196,823     $ 30,228,793  

Net income

     707,788       510,922  

Cash dividends declared in the period; $.51 per share in 2018 and $.55 in 2017

     (492,727     (531,373
  

 

 

   

 

 

 

Retained earnings at end of period

   $ 31,411,884     $ 30,208,342  
  

 

 

   

 

 

 

See Notes to the Condensed Consolidated Financial Statements

 

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CHICAGO RIVET & MACHINE CO.

Condensed Consolidated Statements of Cash Flows

For the Three Months Ended March 31, 2018 and 2017

(Unaudited)

 

     2018     2017  

Cash flows from operating activities:

    

Net income

   $ 707,788     $ 510,922  

Adjustments to reconcile net income to net cash provided by (used in) operating activities:

    

Depreciation

     326,520       303,197  

Gain on disposal of equipment

     (300     (400

Deferred income taxes

     (14,000     (17,000

Changes in operating assets and liabilities:

    

Accounts receivable

     (1,427,855     (850,265

Inventories

     (68,578     (749,749

Other current assets

     102,899       89,318  

Accounts payable

     908,830       646,777  

Accrued wages and salaries

     (14,635     (5,357

Other accrued expenses

     (67,446     (127,111

Unearned revenue and customer deposits

     (238,722     59,162  
  

 

 

   

 

 

 

Net cash provided by (used in) operating activities

     214,501       (140,506
  

 

 

   

 

 

 

Cash flows from investing activities:

    

Capital expenditures

     (225,000     (175,462

Proceeds from the sale of equipment

     300       400  

Proceeds from certificates of deposit

     1,494,000       1,992,000  

Purchases of certificates of deposit

     (1,245,000     (747,000
  

 

 

   

 

 

 

Net cash provided by investing activities

     24,300       1,069,938  
  

 

 

   

 

 

 

Cash flows from financing activities:

    

Cash dividends paid

     (492,727     (531,373
  

 

 

   

 

 

 

Net cash used in financing activities

     (492,727     (531,373
  

 

 

   

 

 

 

Net (decrease) increase in cash and cash equivalents

     (253,926     398,059  

Cash and cash equivalents at beginning of period

     1,152,569       353,475  
  

 

 

   

 

 

 

Cash and cash equivalents at end of period

   $ 898,643     $ 751,534  
  

 

 

   

 

 

 

Supplemental schedule of non-cash investing activities:

    

Capital expenditures in accounts payable

   $ 1,427     $ 1,852  

See Notes to the Condensed Consolidated Financial Statements

 

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CHICAGO RIVET & MACHINE CO.

NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(Unaudited)

1. In the opinion of the Company, the accompanying unaudited interim financial statements contain all adjustments necessary to present fairly the financial position of the Company as of March 31, 2018 (unaudited) and December 31, 2017 (audited) and the results of operations and changes in cash flows for the indicated periods. Certain information and note disclosures normally included in financial statements prepared in accordance with accounting principles generally accepted in the United States of America have been omitted from these unaudited financial statements in accordance with applicable rules. Please refer to the financial statements and notes thereto included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2017.

The preparation of financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. The results of operations for the three month period ended March 31, 2018 are not necessarily indicative of the results to be expected for the year.

In May 2014, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2014-09, “Revenue from Contracts with Customers (Topic 606),” which is a comprehensive new revenue recognition model that requires a company to recognize revenue to depict the transfer of goods or services to a customer at an amount that reflects the consideration it expects to receive in exchange for those goods or services. The guidance in this ASU supersedes the revenue recognition requirements in Topic 605, “Revenue Recognition,” and most industry-specific guidance. In May 2016, the FASB issued ASU 2016-12, “Revenue from Contracts with Customers (Topic 606): Narrow-Scope Improvements and Practical Expedients” (“ASU 2016-12”), which updated ASU 2014-09. ASU 2016-12 clarifies certain core recognition principles including collectability, sales tax presentation, noncash consideration, contract modifications and completed contracts at transition and disclosures no longer required if the full retrospective transition method is adopted. ASU 2014-09 and ASU 2016-12 are effective for annual reporting periods after December 15, 2017 and interim periods within those reporting periods, and are to be applied using either the modified retrospective or full retrospective transition methods. Effective January 1, 2018, the Company adopted the standard using the modified retrospective method. The adoption of this standard did not impact the timing of revenue recognition for our customer sales. The adoption did not result in the recognition of a cumulative adjustment to beginning retained earnings, nor did it have a material impact on the condensed consolidated financial statements. For the Company, the most significant impact of the new standard is the addition of required disclosures within the notes to the financial statements.

2. The Company extends credit on the basis of terms that are customary within our markets to various companies doing business primarily in the automotive industry. The Company has a concentration of credit risk primarily within the automotive industry and in the Midwestern United States.

3. The Company is, from time to time, involved in litigation, including environmental claims and contract disputes, in the normal course of business. While it is not possible at this time to establish the ultimate amount of liability with respect to contingent liabilities, including those related to legal proceedings, management is of the opinion that the aggregate amount of any such liabilities, for which provision has not been made, will not have a material adverse effect on the Company’s financial position.

4. Revenue—On January 1, 2018, the Company adopted ASC Topic 606, “Revenue from Contracts with Customers” using the modified retrospective method. The adoption of Topic 606 did not have a material effect on the Company’s financial position or results of operations.

The Company operates in the fastener industry and is in the business of manufacturing and selling rivets, cold-formed fasteners and parts, screw machine products, automatic rivet setting machines and parts and tools for such machines. Revenue is recognized when control of the promised goods or services is transferred to our customers, in an amount that reflects the consideration we expect to receive in exchange for those goods or services. Sales taxes we may collect concurrent with revenue producing activities are excluded from revenue. Revenue is recognized net of certain sales adjustments to arrive at net sales as reported on the statement of income. These adjustments primarily relate to customer returns and allowances. The Company records a liability and reduction in sales for estimated product returns based upon historical experience. If it is determined that an obligation under warranty claims is probable and subject to reasonable determination, an estimate of that liability is recorded as an offset against revenue at that time. As of March 31, 2018 and December 31, 2017 reserves for warranty claims were not material. Cash received by the Company prior to shipment is recorded as unearned revenue.

 

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Shipping and handling fees billed to customers are recognized in net sales, and related costs as cost of sales, when incurred.

Sales commissions are expensed when incurred because the amortization period is less than one year. These costs are recorded within selling and administrative expenses in the statement of income.

The following table presents revenue by segment, further disaggregated by end-market:

 

     Fastener      Assembly
Equipment
     Consolidated  

Three Months Ended March 31, 2018:

        

Automotive

     6,049,194        49,362        6,098,556  

Non-automotive

     2,875,905        1,037,180        3,913,085  
  

 

 

    

 

 

    

 

 

 

Total

     8,925,099        1,086,542        10,011,641  
  

 

 

    

 

 

    

 

 

 

5. The Company’s effective tax rates were approximately 22.4% and 33.7% for the first quarter of 2018 and 2017, respectively. The lower rate in 2018 is due to the enactment of the Tax Cuts and Jobs Act in December 2017 that reduced the maximum federal corporate tax rate from 35% to 21% beginning in 2018. The effective rate was lower than the U.S. federal statutory rate in 2017 primarily due to the Domestic Production Activities Deduction allowed under Internal Revenue Code Section 199.

The Company’s federal income tax returns for the 2014 through 2017 tax years are subject to examination by the Internal Revenue Service (“IRS”). While it may be possible that a reduction could occur with respect to the Company’s unrecognized tax benefits as an outcome of an IRS examination, management does not anticipate any adjustments that would result in a material change to the results of operations or financial condition of the Company. No statutes have been extended on any of the Company’s federal income tax filings. The statute of limitations on the Company’s 2014 through 2017 federal income tax returns will expire on September 15, 2018 through 2021, respectively.

The Company’s state income tax returns for the 2014 through 2017 tax years remain subject to examination by various state authorities with the latest closing period on October 31, 2021. The Company is not currently under examination by any state authority for income tax purposes and no statutes for state income tax filings have been extended.

6. Inventories are stated at the lower of cost or net realizable value, cost being determined by the first-in, first-out method. A summary of inventories is as follows:

 

     March 31, 2018      December 31, 2017  

Raw material

   $ 1,756,392      $ 1,812,603  

Work-in-process

     1,651,849        1,604,867  

Finished goods

     1,749,437        1,674,630  
  

 

 

    

 

 

 

Inventory, gross

     5,157,678        5,092,100  

Valuation reserves

     (561,000      (564,000
  

 

 

    

 

 

 

Inventories, net

   $ 4,596,678      $ 4,528,100  
  

 

 

    

 

 

 

 

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7. Segment Information—The Company operates in two business segments as determined by its products. The fastener segment includes rivets, cold-formed fasteners and parts and screw machine products. The assembly equipment segment includes automatic rivet setting machines and parts and tools for such machines. Information by segment is as follows:

 

     Fastener      Assembly
Equipment
     Other      Consolidated  

Three Months Ended March 31, 2018:

           

Net sales

   $ 8,925,099      $ 1,086,542      $ —        $ 10,011,641  

Depreciation

     291,881        27,298        7,341        326,520  

Segment operating profit

     1,177,462        384,185        —          1,561,647  

Selling and administrative expenses

     —          —          (676,939      (676,939

Interest income

     —          —          27,080        27,080  
           

 

 

 

Income before income taxes

            $ 911,788  
           

 

 

 

Capital expenditures

     184,227        31,495        10,705        226,427  

Segment assets:

           

Accounts receivable, net

     6,420,410        334,095        —          6,754,505  

Inventories, net

     3,658,938        937,740        —          4,596,678  

Property, plant and equipment, net

     10,175,256        1,646,752        634,852        12,456,860  

Other assets

     —          —          8,798,774        8,798,774  
           

 

 

 
            $ 32,606,817  
           

 

 

 

Three Months Ended March 31, 2017:

           

Net sales

   $ 8,736,188      $ 747,139      $ —        $ 9,483,327  

Depreciation

     269,837        24,390        8,970        303,197  

Segment operating profit

     1,191,547        245,620        —          1,437,167  

Selling and administrative expenses

     —          —          (680,928      (680,928

Interest income

     —          —          14,683        14,683  
           

 

 

 

Income before income taxes

            $ 770,922  
           

 

 

 

Capital expenditures

     174,789        2,525        —          177,314  

Segment assets:

           

Accounts receivable, net

     5,797,234        376,550        —          6,173,784  

Inventories, net

     4,075,856        1,211,586        —          5,287,442  

Property, plant and equipment, net

     10,187,799        1,542,837        594,039        12,324,675  

Other assets

     —          —          7,956,280        7,956,280  
           

 

 

 
            $ 31,742,181  
           

 

 

 

 

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CHICAGO RIVET & MACHINE CO.

 

Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations.

Results of Operations

Revenues for the first quarter of 2018 were $10,011,641 compared to $9,483,327 in the first quarter of 2017, an increase of $528,314, or 5.6%. The increase was the result of improved sales in both of our operating segments. Net income was $707,788, or $0.73 per share, in the first quarter of this year compared to $510,922, or $0.53 per share, in the first quarter of 2017. In addition to a regular quarterly dividend of $0.21 per share, an extra dividend of $0.30 per share was paid in the first quarter of 2018 based on the strong operating results achieved in 2017.

Fastener segment revenues were $8,925,099 in the first quarter of 2018, an increase of $188,911, or 2.2%, from $8,736,188 reported in the first quarter of 2017. The automotive sector is the primary market for our fastener segment products. U.S. light-vehicle sales rose approximately 2% during the first quarter of 2018 after experiencing the first full year decline in seven years in 2017. The improvement in automotive sales and the addition of a number of non-automotive customers in the second half of 2017 contributed to the revenue increase in the first quarter. Overall, production costs in the first quarter were higher than a year earlier, as higher material costs exceeded savings related to tooling expense of $123,000 and certain other items. As a result, despite the increase in revenue, fastener segment gross margins declined from $2,032,814 in the first quarter of 2017 to $1,976,640 in the first quarter of 2018.

Assembly equipment segment revenues were $1,086,542 in the first quarter of 2018 compared to $747,139 in the first quarter of 2017, an increase of $339,403, or 45.4%. The increase in revenue was primarily due to the shipment of a high-dollar machine order in the current year quarter. The higher revenue contributed to a $142,668 increase in segment gross margin from $223,697 in 2017 to $366,365 in 2018. Material costs increased during the current year quarter, but were offset by an overall reduction in overhead expenses.

Selling and administrative expenses during the first quarter of 2018 were $1,464,718 compared to $1,506,272 recorded in the first quarter of 2017, a decline of $41,554, or 2.8%. The decline was primarily due to $77,000 in expenses related to an ERP system upgrade at one of our locations incurred in the prior year quarter. Partially offsetting that reduction were a $35,000 increase in commission expense related to higher sales in the current year and an $18,000 increase in profit sharing expense related to the improvement in operating profit. Compared to net sales, selling and administrative expenses declined to 14.6% in the first quarter of 2018 from 15.9% in the first quarter of 2017.

Other Income

Other income in the first quarter of 2018 was $33,501 compared to $20,683 in the first quarter of 2017. The increase is primarily related to an increase in interest income on certificates of deposit due to higher interest rates and greater average invested balances.

Income Tax Expense

The Company’s effective tax rates were approximately 22.4% and 33.7% for the first quarter of 2018 and 2017, respectively. The lower rate in 2018 is due to the enactment of the Tax Cuts and Jobs Act in December 2017 that reduced the maximum federal corporate tax rate from 35% to 21% beginning in 2018. The new tax law had the estimated impact of reducing income tax expense by $101,000 during the first quarter. The 2017 rate was lower than the U.S. federal statutory rate primarily due to the Domestic Production Activities Deduction allowed under Internal Revenue Code Section 199.

Liquidity and Capital Resources

Working capital amounted to $17.3 million as of March 31, 2018, an increase of $0.3 million from the beginning of the current year. The largest component of the net increase in working capital in the first quarter was accounts receivable, which increased by $1.4 million due to greater sales activity during the quarter compared to the seasonally lower fourth quarter of 2017. Partially offsetting this increase were an increase in accounts payable during the first quarter of $0.9 million, related to an increase in operating activity and a reduction in cash and certificates of deposit of $0.5 million, which was due in part to the payment of dividends during the first quarter of $0.5 million. The net result of these changes and other cash flow activity was to leave cash, cash equivalents and certificates of deposit at $8.5 million as of March 31, 2018 compared to $9 million 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.

 

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Results of Operations Summary

We are pleased to report improvement in both sales and net income in the first quarter and that our near-term outlook remains positive. Demand for our fastener segment products remains stable and is supported by a healthy domestic automotive market. We have experienced increases in steel prices, our primary raw material, in recent months that have negatively impacted our gross margins and remain a concern as further increases are expected. Since material price increases can be difficult to mitigate, we will emphasize cost controls in other areas and strive for greater operating efficiencies in an effort to improve operating results as well as pursuing new sales opportunities. Our assembly equipment segment should benefit in the near-term from a machine order backlog that has grown in recent weeks. We will continue to make adjustments to our activities which we feel are necessary based on changing conditions in our markets, while maintaining an emphasis on quality and reliability of service our customers demand.

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, the loss of the services of our key employees and difficulties in achieving cost savings. 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.

 

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CHICAGO RIVET & MACHINE CO.

 

Item 4. Controls and Procedures.

(a) Disclosure Controls and Procedures. The Company’s management, with the participation of the Company’s Chief Executive Officer and President, Chief Operating Officer and Treasurer (the Company’s principal financial officer), has evaluated the effectiveness of the Company’s disclosure controls and procedures (as such term is defined in Rules 13a-15(e) and 15d-15(e) under the Securities Exchange Act of 1934, as amended (the “Exchange Act”)) as of the end of the period covered by this report. Based on such evaluation, the Company’s Chief Executive Officer and President, Chief Operating Officer and Treasurer have concluded that, as of the end of such period, the Company’s disclosure controls and procedures are effective in recording, processing, summarizing and reporting, on a timely basis, information required to be disclosed by the Company in the reports that it files or submits under the Exchange Act.

(b) Internal Control Over Financial Reporting. There have not been any changes in the Company’s internal control over financial reporting (as such term is defined in Rules 13a-15(f) and 15d-15(f) under the Exchange Act) during the fiscal quarter to which this report relates that have materially affected, or are reasonably likely to materially affect, the Company’s internal control over financial reporting.

 

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PART II — OTHER INFORMATION

 

Item 6. Exhibits

 

31    Rule 13a-14(a) or 15d-14(a) Certifications
31.1    Certification Pursuant to Rule 13a-14(a) or 15d-14(a), as Adopted Pursuant to Section  302 of the Sarbanes-Oxley Act of 2002.
31.2    Certification Pursuant to Rule 13a-14(a) or 15d-14(a), as Adopted Pursuant to Section  302 of the Sarbanes-Oxley Act of 2002.
32    Section 1350 Certifications
32.1    Certification Pursuant to 18 U.S.C. Section 1350, as Adopted Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.
32.2    Certification Pursuant to 18 U.S.C. Section 1350, as Adopted Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.
101    Interactive Data File. Includes the following financial and related information from Chicago Rivet & Machine Co.’s Quarterly Report on Form 10-Q for the quarter ended March 31, 2018 formatted in Extensible Business Reporting Language (XBRL): (1) Condensed Consolidated Balance Sheets, (2) Condensed Consolidated Statements of Income, (3) Condensed Consolidated Statements of Retained Earnings, (4) Condensed Consolidated Statements of Cash Flows, and (5) Notes to Condensed Consolidated Financial Statements.

 

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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 thereunto duly authorized.

 

      CHICAGO RIVET & MACHINE CO.
      (Registrant)                                       
     
Date: May 4, 2018      

/s/     John A. Morrissey

      John A. Morrissey
      Chairman of the Board of Directors
      and Chief Executive Officer
      (Principal Executive Officer)
     
Date: May 4, 2018      

/s/     Michael J. Bourg

      Michael J. Bourg
      President, Chief Operating
      Officer and Treasurer
      (Principal Financial Officer)

 

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