Chicago Rivet & Machine (CVR)

Management Discussion

• Financial results for the first three quarters of 2021 improved dramatically over the same period in 2020 which was adversely impacted by the global COVID-19 pandemic.  Although the pandemic continued to present many challenges in 2021, as of September 30, 2021, sales had increased $6,899,836, or 35.7%, compared to the same period in 2020.  Ongoing supply chain disruptions weighed heavily on demand from our automotive sector customers during the fourth quarter even as overall economic activity improved.  As a result, sales in the fourth quarter of 2021 were limited to $7,749,488 compared to $8,265,419 a year earlier, a decline of $515,931, or 6.2%.  The combination of lower sales and higher costs in the quarter resulted in a reduction in fourth quarter net income compared to a year earlier.  Net income was $81,178, or $0.08 per share, in the fourth quarter of 2021 compared to $464,263, or $0.48 per share, for the fourth quarter of 2020.  For the full year 2021, net sales were $33,974,558 compared to $27,590,653 in 2020, an increase of $6,383,905, or 23.1%.  Net sales in 2021 reflect an increase of $1,101,556, or 3.4%, compared to the $32,873,002 reported in 2019.  Full year net income in 2021 was $1,113,472, or $1.15 per share, compared to $50,450, or $0.05 per share, in 2020 and net income of $538,314, or $0.56 per share, in 2019.