Financial Performance - Net sales for the three months ended June 30, 2019, were $8,875,451, a decrease of 9.35% compared to $9,792,784 for the same period in 2018[14] - Gross profit for the six months ended June 30, 2019, was $3,209,733, down 30.66% from $4,631,439 in 2018[14] - Net income for the six months ended June 30, 2019, was $516,401, a decline of 63.48% compared to $1,410,880 in 2018[19] - For the six months ended June 30, 2019, total net sales were $17,497,129, a decrease of 11.6% from $19,804,425 in the same period of 2018[32] - Total consolidated net sales for the first six months of 2019 were $17,497,129, compared to $19,804,425 in the same period of 2018, reflecting a decline of approximately 11.6%[41] - Income before income taxes for the first six months of 2019 was $658,401, a decrease from $1,825,880 in the same period of 2018, representing a decline of approximately 64.1%[41] Assets and Liabilities - Total current assets decreased to $18,889,046 as of June 30, 2019, from $19,988,479 at the end of 2018, representing a decline of 5.49%[9] - Total liabilities decreased to $3,196,342 as of June 30, 2019, from $3,486,876 at the end of 2018, a reduction of 8.32%[11] - As of June 30, 2019, total inventories were $6,098,823, slightly down from $6,100,391 as of December 31, 2018[36] - Accounts receivable, net for the fastener segment decreased to $5,426,139 as of June 30, 2019, down from $6,508,150 as of June 30, 2018, a reduction of about 16.6%[38] - Inventories, net for the assembly equipment segment increased to $1,102,215 as of June 30, 2019, compared to $1,050,451 as of June 30, 2018, an increase of approximately 4.9%[38] - Total segment assets as of June 30, 2019, amounted to $32,757,554, compared to $30,000,000 in the previous year, indicating an increase of approximately 9.2%[38] Cash Flow and Dividends - Cash and cash equivalents increased to $908,075 as of June 30, 2019, from $706,873 at the end of 2018, an increase of 28.43%[9] - The company reported a net cash provided by operating activities of $709,876 for the six months ended June 30, 2019, compared to $701,491 in 2018, reflecting a slight increase of 1.10%[19] - The company declared cash dividends of $0.22 per share for the three months ended June 30, 2019, compared to $0.21 per share in 2018[14] Segment Performance - Automotive segment sales for the three months ended June 30, 2019, were $4,943,688, down 15.4% from $5,884,416 in the prior year[32] - Non-automotive segment sales for the three months ended June 30, 2019, were $3,931,763, a decrease of 0.9% compared to $3,908,368 in the same period of 2018[32] - Net sales for the fastener segment decreased to $7,816,704 in Q2 2019 from $9,034,275 in Q2 2018, a decline of approximately 13.5%[38] - Segment operating profit for the fastener segment fell to $487,305 in Q2 2019, down from $1,229,717 in Q2 2018, representing a decrease of about 60.3%[38] Capital Expenditures - Capital expenditures for the six months ended June 30, 2019, were $1,283,736, significantly higher than $635,718 in 2018[19] - Capital expenditures increased to $1,293,029 in the first six months of 2019, up from $635,718 in the same period of 2018, marking an increase of about 103.5%[41] Expenses - Selling and administrative expenses for the first six months of 2019 were $1,141,454, compared to $1,268,579 in the same period of 2018, a decrease of about 10%[41] - Depreciation expense for the fastener segment increased to $602,805 in the first six months of 2019, up from $584,259 in the same period of 2018, reflecting an increase of approximately 3.3%[41] Tax and Accounting - The effective tax rate for the second quarter of 2019 was approximately 21.0%, compared to 23.1% for the same quarter in 2018[32] - The Company adopted Accounting Standards Update No. 2016-02 on January 1, 2019, which did not have a material impact on the financial statements[24] Risk and Litigation - The Company has concentrations of credit risk primarily within the automotive industry and in the Midwestern United States[25] - Management believes that any contingent liabilities related to ongoing litigation will not have a material adverse effect on the Company's financial position[26] Revenue Recognition - The Company recognized $219,700 in revenue related to a specific contract during the second quarter of 2019, with a remaining performance obligation of $118,300 expected to be recognized in the third quarter[27]
Chicago Rivet & Machine (CVR) - 2019 Q2 - Quarterly Report