Chicago Rivet & Machine (CVR) - 2025 Q3 - Quarterly Report

Financial Performance - Net sales for Q3 2025 reached $7,360,284, a 5.6% increase from $6,969,921 in Q3 2024[12] - Gross profit for Q3 2025 was $1,329,496, compared to $694,987 in Q3 2024, reflecting a significant improvement[12] - Operating income for Q3 2025 was $64,570, a turnaround from an operating loss of $823,571 in Q3 2024[12] - Net income for Q3 2025 was $67,572, compared to a net loss of $1,446,621 in Q3 2024[12] - For the nine months ended September 30, 2025, total sales to external customers were $21,903,997, up from $22,882,579 in the same period of 2024, indicating a decrease of about 4.3%[52] - The gross profit for the fastener segment was $878,177 for the three months ended September 30, 2025, compared to $695,342 for the same period in 2024, reflecting an increase of approximately 26.3%[52] - The operating income for the Company was $64,570 for the three months ended September 30, 2025, compared to a loss of $823,571 in the same period in 2024, showing a significant improvement[52] - Net income for the three months ended September 30, 2025, was $67,572, or $0.07 per share, compared to a net loss of $1,446,621, or $1.50 per share for the same period in 2024, marking an increase of $1,514,193, or 104.7%[67] Assets and Liabilities - Total current assets increased to $13,537,511 as of September 30, 2025, up from $12,591,065 at the end of 2024[9] - Total assets rose to $24,028,250 as of September 30, 2025, compared to $23,370,174 at the end of 2024[9] - Cash and cash equivalents decreased to $1,682,919 from $1,922,679 at the end of 2024[9] - Total liabilities increased to $4,009,136 as of September 30, 2025, compared to $3,337,722 at the end of 2024[9] - The total assets of the Company as of September 30, 2025, were $24,028,250, down from $26,391,515 as of September 30, 2024, reflecting a decrease of approximately 8.9%[53] Cash Flow and Dividends - Cash flows from operating activities showed a net cash used of $1,344,371 for the nine months ended September 30, 2025[18] - Cash dividends declared per share were $0.03 for Q3 2025, down from $0.10 in Q3 2024[12] Inventory and Accrued Liabilities - As of September 30, 2025, the Company's net inventories amounted to $6,349,195, a decrease from $6,496,170 as of December 31, 2024, reflecting a valuation allowance of $459,088[45] - The Company recorded accrued liabilities for warranty claims of $880,000 as of September 30, 2025, down from $1,057,000 as of December 31, 2024[36] - The Company’s total accrued liabilities for customer settlements increased from $177,000 in December 31, 2024, to $220,000 as of September 30, 2025[46] Tax and NOL Carryforwards - The Company's effective tax rate for the nine months ended September 30, 2025, was zero, compared to (32.0)% for the same period in 2024[38] - The Company has federal income tax NOL carryforwards of $9,456,000 and state NOL carryforwards of $3,698,000 as of December 31, 2024[42] Segment Performance - Fastener segment sales increased by $506,633, or 8.5%, to $6,433,949 for Q3 2025 compared to Q3 2024, but declined by $570,584, or 2.9%, to $18,990,136 for the nine months ended September 30, 2025 compared to the same period in 2024[69] - Automotive sector sales for Q3 2025 rose by $650,112, or 18.2%, to $4,228,502, but decreased by $1,173,857, or 9.0%, to $11,876,239 for the nine months ended September 30, 2025 due to a slowdown in North American vehicle production[69] - Non-automotive fastener sales decreased by $143,479, or 6.1%, to $2,205,447 for Q3 2025, while increasing by $603,273, or 9.3%, to $7,113,897 for the nine months ended September 30, 2025[69] - Assembly equipment segment sales fell by $116,270, or 11.2%, to $926,335 for Q3 2025 and by $407,998, or 12.3%, to $2,913,861 for the nine months ended September 30, 2025[70] Expenses and Cost Management - Selling and administrative expenses decreased by $253,632, or 16.7%, to $1,264,926 for Q3 2025, and by $229,323, or 5.1%, to $4,244,987 for the nine months ended September 30, 2025[71] - The Company’s lease costs for the three months ended September 30, 2025, were $28,330, compared to $28,200 for the same period in 2024, a slight increase of 0.5%[48] - The expected annual minimum lease payments total $530,790, with a present value lease liability of $448,344 as of September 30, 2025[50] - The Company’s capital expenditures for the three months ended September 30, 2025, were $145,915, compared to $310,732 for the same period in 2024, indicating a decrease of approximately 53%[52] Strategic Actions and Outlook - The company has developed strategic actions to improve liquidity, including consolidating operations and enhancing the sales team[61] - The company recognizes ongoing industry headwinds, including inflation and supply chain complexities, which may affect near-term financial performance[68] - The outlook for the remainder of 2025 indicates continued challenges in the economic environment, with efforts to improve sales and operational efficiency amid uncertainties from tariffs and market factors[79]