Document and Entity Information
Document and Entity Information - USD ($) | 12 Months Ended | |
Dec. 31, 2016 | Jun. 30, 2016 | |
Document and Entity Information: | ||
Entity Registrant Name | CHICAGO RIVET & MACHINE CO. | |
Document Type | 10-K | |
Document Period End Date | Dec. 31, 2016 | |
Trading Symbol | cvr | |
Amendment Flag | false | |
Entity Central Index Key | 19,871 | |
Current Fiscal Year End Date | --12-31 | |
Entity Common Stock, Shares Outstanding | 966,132 | |
Entity Public Float | $ 21,211,146 | |
Entity Filer Category | Smaller Reporting Company | |
Entity Current Reporting Status | Yes | |
Entity Voluntary Filers | No | |
Entity Well-known Seasoned Issuer | No | |
Document Fiscal Year Focus | 2,016 | |
Document Fiscal Period Focus | FY |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) | Dec. 31, 2016 | Dec. 31, 2015 | |
Current Assets: | |||
Cash and cash equivalents | $ 353,475 | $ 800,894 | |
Certificates of deposit | 8,059,000 | 6,565,000 | |
Accounts receivable, net | [1] | 5,323,519 | 5,438,332 |
Inventories, net | 4,537,693 | 4,538,212 | |
Prepaid income taxes | 56,112 | 273,112 | |
Other current assets | 423,952 | 383,953 | |
Total current assets | 18,753,751 | 17,999,503 | |
Property, plant and equipment, net | 12,450,558 | 11,698,443 | |
Total assets | 31,204,309 | 29,697,946 | |
Current Liabilities: | |||
Accounts payable | 703,467 | 768,111 | |
Accrued wages and salaries | 690,526 | 611,484 | |
Other accrued expenses | 604,174 | 465,662 | |
Unearned revenue and customer deposits | 286,133 | 467,189 | |
Total current liabilities | 2,284,300 | 2,312,446 | |
Deferred income taxes, net | 1,028,084 | 894,084 | |
Total liabilities | 3,312,384 | 3,206,530 | |
Shareholders' Equity: | |||
Preferred stock | [2] | 0 | 0 |
Common stock | [3] | 1,138,096 | 1,138,096 |
Additional paid-in capital | 447,134 | 447,134 | |
Retained earnings | 30,228,793 | 28,828,284 | |
Less: Treasury stock | [4] | 3,922,098 | 3,922,098 |
Total shareholders' equity | 27,891,925 | 26,491,416 | |
Total liabilities and shareholders' equity | $ 31,204,309 | $ 29,697,946 | |
[1] | Net of allowance of $150,000. | ||
[2] | No par value, 500,000 shares authorized, none outstanding. | ||
[3] | $1.00 par value, 4,000,000 shares authorized, 1,138,096 shares issued, 966,132 shares outstanding. | ||
[4] | At cost, 171,964 shares. |
Consolidated Statements of Inco
Consolidated Statements of Income - USD ($) | 12 Months Ended | |
Dec. 31, 2016 | Dec. 31, 2015 | |
Consolidated Statements of Income | ||
Net sales | $ 37,022,378 | $ 36,174,604 |
Cost of goods sold | 27,980,217 | 28,279,125 |
Gross profit | 9,042,161 | 7,895,479 |
Selling and administrative expenses | 5,559,436 | 5,408,281 |
Operating profit | 3,482,725 | 2,487,198 |
Other income | 65,255 | 44,443 |
Income before provision for income taxes | 3,547,980 | 2,531,641 |
Provision for income taxes | 1,191,000 | 844,000 |
Net income | $ 2,356,980 | $ 1,687,641 |
Net income per share | $ 2.44 | $ 1.75 |
Consolidated Statements of Reta
Consolidated Statements of Retained Earnings - USD ($) | 12 Months Ended | |
Dec. 31, 2016 | Dec. 31, 2015 | |
Consolidated Statements of Retained Earnings | ||
Retained earnings at beginning of year | $ 28,828,284 | $ 28,077,791 |
Net income | 2,356,980 | 1,687,641 |
Cash dividends paid, $.99 and $.97 per share in 2016 and 2015, respectively | (956,471) | (937,148) |
Retained earnings at end of year | $ 30,228,793 | $ 28,828,284 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) | 12 Months Ended | |
Dec. 31, 2016 | Dec. 31, 2015 | |
Cash flows from operating activities: | ||
Net income | $ 2,356,980 | $ 1,687,641 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Depreciation and amortization | 1,242,357 | 1,261,446 |
Loss on the sale of equipment | 29,658 | 17,504 |
Deferred income taxes | 134,000 | 233,000 |
Changes in operating assets and liabilities: | ||
Accounts receivable, net | 114,813 | 231,322 |
Inventories, net | 519 | 624,262 |
Other current assets | 177,001 | (134,996) |
Accounts payable | (64,644) | (178,703) |
Accrued wages and salaries | 79,042 | 6,455 |
Other accrued expenses | 138,512 | (55,061) |
Unearned revenue and customer deposits | (181,056) | 397,323 |
Net cash provided by operating activities | 4,027,182 | 4,090,193 |
Cash flows from investing activities: | ||
Capital expenditures | (2,027,860) | (2,081,272) |
Proceeds from the sale of equipment | 3,730 | 4,869 |
Proceeds from certificates of deposit | 6,225,000 | 7,303,000 |
Purchases of certificates of deposit | (7,719,000) | (7,810,000) |
Net cash used in investing activities | (3,518,130) | (2,583,403) |
Cash flows from financing activities: | ||
Cash dividends paid | (956,471) | (937,148) |
Net cash used in financing activities | (956,471) | (937,148) |
Net increase (decrease) in cash and cash equivalents | (447,419) | 569,642 |
Cash and cash equivalents at beginning of year | 800,894 | 231,252 |
Cash and cash equivalents at end of year | 353,475 | 800,894 |
Net cash paid for income taxes | 840,000 | 710,456 |
Supplemental schedule of non-cash investing activities: | ||
Capital expenditures in accounts payable | $ 0 | $ 22,995 |
1 - Nature of Business and Sign
1 - Nature of Business and Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2016 | |
Notes | |
1 - Nature of Business and Significant Accounting Policies | 1-Nature of Business and Significant Accounting Policies Nature of Business- A summary of the Companys significant accounting policies follows: Principles of Consolidation- Revenue Recognition- Credit Risk- Cash and Cash Equivalents and Certificates of Deposit- Fair Value of Financial Instruments- Inventories- Property, Plant and Equipment- Asset Category Estimated Useful Life Land improvements .. 15 to 25 years Buildings and improvements 10 to 35 years Machinery and equipment 7 to 15 years Capitalized software costs 3 to 5 years Other equipment 3 to 15 years The Company reviews the carrying value of property, plant and equipment for impairment whenever events and circumstances indicate that the carrying value of an asset may not be recoverable from the estimated future cash flows expected to result from its use and eventual disposition. In cases where undiscounted expected future cash flows are less than the carrying value, an impairment loss is recognized equal to an amount by which the carrying value exceeds the fair value of assets. There were no triggering events requiring assessment of impairment as of December 31, 2016 and 2015. When properties are retired or sold, the related cost and accumulated depreciation are removed from the respective accounts, and any gain or loss on disposition is recognized in current operations. Maintenance, repairs and minor betterments that do not improve the related asset or extend its useful life are charged to operations as incurred. Income Taxes- The Company applies a comprehensive model for the financial statement recognition, measurement, classification and disclosure of uncertain tax positions. In the first step of the two-step process, the Company evaluates the tax position for recognition by determining if the weight of available evidence indicates that it is more likely than not that the position will be sustained on audit, including resolution of related appeals or litigation processes, if any. In the second step, the Company measures the tax benefit as the largest amount that is more than 50% likely of being realized upon settlement. As of December 31, 2016 and 2015, the Company determined that there are no uncertain tax positions with a more than 50% likelihood of being realized upon settlement. The Company classifies interest and penalties related to unrecognized tax benefits as a component of income tax expense. There were no such expenses in 2016 or 2015. The Companys federal income tax returns for the 2013 through 2015 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 Companys 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 Companys federal income tax filings. The statute of limitations on the Companys 2013, 2014 and 2015 federal income tax returns will expire on September 15, 2017, 2018 and 2019, respectively. The Companys state income tax returns for the 2013 through 2015 tax years are subject to examination by various state authorities with the latest closing period on October 31, 2019. The Company is currently not under examination by any state authority for income tax purposes and no statutes for state income tax filings have been extended. Segment Information- The Company reports segment information based on the internal structure and reporting of the Companys operations. Net Income Per Share- Use of Estimates- Reclassifications- Recent Accounting Pronouncements- In August 2016, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) No. 2016-15, Statement of Cash Flows (Topic 230): Classification of Certain Cash Receipts and Cash Payments. This ASU includes specific guidance to address diversity in how certain cash receipts and cash payments are presented and classified in the statement of cash flows. The ASU is effective for annual reporting periods beginning after December 15, 2017 and interim periods within those annual periods. The Company does not expect the adoption of this ASU to have a significant impact on the consolidated financial statements. In February 2016, the FASB issued ASU No. 2016-02, Leases (Topic 842). The ASU will increase transparency and comparability among entities by recognizing lease assets and lease liabilities on the balance sheet and disclosing key information about leasing arrangements. The ASU will require lessees to recognize in the balance sheet a liability to make lease payments (the lease liability) and a right-of-use asset representing its right to use the underlying asset for the lease term. The ASU is effective for annual reporting periods beginning after December 15, 2018 and interim periods within those annual periods. The impact of adopting this ASU is not expected to be significant based on current lease agreements. In May 2014, the FASB issued 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, with early adoption permitted. The Company has reviewed its revenue sources and contracts within the scope of the ASU and based on its evaluation to date, does not anticipate this standard will have a material impact on its consolidated financial statements. The Company does not plan to early adopt the ASU and has not yet determined the transition method. |
2 - Balance Sheet Details
2 - Balance Sheet Details | 12 Months Ended |
Dec. 31, 2016 | |
Notes | |
2 - Balance Sheet Details | 2-Balance Sheet Details December 31, 2016 December 31, 2015 Inventories: $ 1,675,143 $ 1,923,932 1,684,321 1,606,389 1,740,229 1,584,891 5,099,693 5,115,212 (562,000) (577,000) $ 4,537,693 $ 4,538,212 December 31, 2016 December 31, 2015 Property, Plant and Equipment, net: Land and improvements . $ 1,424,689 $ 1,281,982 Buildings and improvements . 7,908,780 7,271,006 Machinery and equipment . 32,559,468 32,020,937 Capitalized software and other . 1,312,887 1,274,592 43,205,824 41,848,517 Accumulated depreciation .. (30,755,266) (30,150,074) $12,450,558 $ 11,698,443 December 31, 2016 December 31, 2015 Other Accrued Expenses: Profit sharing plan contribution . $ 384,275 $ 273,238 Property taxes . 92,044 92,526 All other items . 127,855 99,898 $ 604,174 $ 465,662 December 31, 2016 December 31, 2015 Allowance for Doubtful Accounts: Balance at beginning of year . $ 150,000 $ 150,000 Charges to statement of income ... 1,566 3,824 Write-offs ... (1,566) (3,824) Balance at end of year $ 150,000 $ 150,000 December 31, 2016 December 31, 2015 Inventory Valuation Reserves: Balance at beginning of year . $ 577,000 $ 618,000 Charges to statement of income ... 80,793 77,577 Write-offs ... (95,793) (118,577) Balance at end of year $ 562,000 $ 577,000 |
3 - Income Taxes
3 - Income Taxes | 12 Months Ended |
Dec. 31, 2016 | |
Notes | |
3 - Income Taxes | 3-Income Taxes- 2016 2015 Current: Federal .. $ 1,005,000 $ 576,000 State 52,000 35,000 Deferred 134,000 233,000 $ 1,191,000 $ 844,000 The following is a reconciliation of the statutory federal income tax rate to the actual effective tax rate: 2016 2015 Amount % Amount % Expected tax at U.S. statutory rate $ 1,206 ,000 34. 0 $ 861,000 34.0 Permanent differences (49,000) (1.4) (40,000) (1.6) State taxes, net of federal benefit . 34,000 1.0 23,000 0.9 Income tax expense $ 1,191,000 33.6 $ 844,000 33.3 The Companys effective tax rates were lower than the U.S. federal statutory rate in 2016 and 2015 primarily due to the Domestic Production Activities Deduction allowed under Internal Revenue Code Section 199. The deferred tax liabilities and assets consist of the following: 2016 2015 Depreciation and amortization .. $ (1,432,275) $ (1,319,275) Inventory .. 240,647 263,723 Accrued vacation 110,246 109,193 Allowance for doubtful accounts .. 53,625 53,625 Other, net . (327) (1,350) $ (1,028,084) $ (894,084) Valuation allowances related to deferred taxes are recorded based on the more likely than not realization criteria. The Company reviews the need for a valuation allowance on a quarterly basis for each of its tax jurisdictions. A deferred tax valuation allowance was not required at December 31, 2016 or 2015. |
4 - Profit Sharing Plan
4 - Profit Sharing Plan | 12 Months Ended |
Dec. 31, 2016 | |
Notes | |
4 - Profit Sharing Plan | 4-Profit Sharing Plan- |
5 - Other Income
5 - Other Income | 12 Months Ended |
Dec. 31, 2016 | |
Notes | |
5 - Other Income | 5-Other Income- 2016 2015 Interest income . $ 41,880 $ 26,544 Other .. 23,375 17,899 $ 65,255 $ 44,443 |
6 - Segment Information
6 - Segment Information | 12 Months Ended |
Dec. 31, 2016 | |
Notes | |
6 - Segment Information | 6-Segment Information- H & L Tool and the parent companys fastener operations, 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 Year Ended December 31, 2016: Net Sales $ 33,126,599 $ 3,895,779 $ 0 $ 37,022,378 Depreciation ... 1,078,281 93,876 70,200 1,242,357 Segment operating profit 4,689,749 1,350,277 0 6,040,026 Selling and administrative expenses .. 0 0 (2,557,301) (2,557,301) Other income .. 0 0 65,255 65,255 Income before income taxes 3,547,980 Capital expenditures . 1,683,953 189,568 154,339 2,027,860 Segment assets: Accounts receivable, net ... 5,036,251 287,268 0 5,323,519 Inventories, net ... 3,639,940 897,753 0 4,537,693 Property, plant and equipment, net . 10,282,847 1,564,702 603,009 12,450,558 Other assets 0 0 8,892,539 8,892,539 31,204,309 Year Ended December 31, 2015: Net sales . $ 32,590,015 $ 3,584,589 $ 0 $ 36,174,604 Depreciation ... 1,101,210 80,191 80,045 1,261,446 Segment operating profit 3,692,805 981,326 0 4,674,131 Selling and administrative expenses .. 0 0 (2,186,933) (2,186,933) Other income .. 0 0 44,443 44,443 Income before income taxes 2,531,641 Capital expenditures . 1,545,533 455,139 103,595 2,104,267 Segment assets: Accounts receivable, net 5,084,535 353,797 0 5,438,332 Inventories, net ... 3,549,655 988,557 0 4,538,212 Property, plant and equipment, net . 9,732,333 1,469,010 497,100 11,698,443 Other assets 0 0 8,022,959 8,022,959 29,697,946 The Company does not allocate certain selling and administrative expenses for internal reporting, thus, no allocation was made for these expenses for segment disclosure purposes. Segment assets reported internally are limited to accounts receivable, inventory and long-lived assets. Certain long-lived assets of one plant location are allocated between the two segments based on estimated plant utilization, as this plant serves both fastener and assembly equipment activities. Other assets are not allocated to segments internally and to do so would be impracticable. Sales to two customers in the fastener segment accounted for 19 and 21 percent and 12 and 12 percent of consolidated revenues during 2016 and 2015, respectively. The accounts receivable balances for these customers accounted for 22 and 26 percent of consolidated accounts receivable for the larger customer and 12 and 13 percent for the other customer as of December 31, 2016 and 2015, respectively. |
7 - Commitments and Contingenci
7 - Commitments and Contingencies | 12 Months Ended |
Dec. 31, 2016 | |
Notes | |
7 - Commitments and Contingencies | 7-Commitments and Contingencies- The Company is, from time to time involved in litigation, including environmental claims, 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. |
8 - Subsequent Events
8 - Subsequent Events | 12 Months Ended |
Dec. 31, 2016 | |
Notes | |
8 - Subsequent Events | 8 - Subsequent Events - |
Significant Accounting Policies
Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2016 | |
Policies | |
Principles of Consolidation | Principles of Consolidation- |
Revenue Recognition | Revenue Recognition- |
Credit Risk | Credit Risk- |
Cash and Cash Equivalents and Certificates of Deposit | Cash and Cash Equivalents and Certificates of Deposit- |
Fair Value of Financial Instruments | Fair Value of Financial Instruments- |
Inventories | Inventories- |
Property, Plant and Equipment | Property, Plant and Equipment- Asset Category Estimated Useful Life Land improvements .. 15 to 25 years Buildings and improvements 10 to 35 years Machinery and equipment 7 to 15 years Capitalized software costs 3 to 5 years Other equipment 3 to 15 years The Company reviews the carrying value of property, plant and equipment for impairment whenever events and circumstances indicate that the carrying value of an asset may not be recoverable from the estimated future cash flows expected to result from its use and eventual disposition. In cases where undiscounted expected future cash flows are less than the carrying value, an impairment loss is recognized equal to an amount by which the carrying value exceeds the fair value of assets. There were no triggering events requiring assessment of impairment as of December 31, 2016 and 2015. When properties are retired or sold, the related cost and accumulated depreciation are removed from the respective accounts, and any gain or loss on disposition is recognized in current operations. Maintenance, repairs and minor betterments that do not improve the related asset or extend its useful life are charged to operations as incurred. |
Income Taxes | Income Taxes- The Company applies a comprehensive model for the financial statement recognition, measurement, classification and disclosure of uncertain tax positions. In the first step of the two-step process, the Company evaluates the tax position for recognition by determining if the weight of available evidence indicates that it is more likely than not that the position will be sustained on audit, including resolution of related appeals or litigation processes, if any. In the second step, the Company measures the tax benefit as the largest amount that is more than 50% likely of being realized upon settlement. As of December 31, 2016 and 2015, the Company determined that there are no uncertain tax positions with a more than 50% likelihood of being realized upon settlement. The Company classifies interest and penalties related to unrecognized tax benefits as a component of income tax expense. There were no such expenses in 2016 or 2015. The Companys federal income tax returns for the 2013 through 2015 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 Companys 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 Companys federal income tax filings. The statute of limitations on the Companys 2013, 2014 and 2015 federal income tax returns will expire on September 15, 2017, 2018 and 2019, respectively. The Companys state income tax returns for the 2013 through 2015 tax years are subject to examination by various state authorities with the latest closing period on October 31, 2019. The Company is currently not under examination by any state authority for income tax purposes and no statutes for state income tax filings have been extended. |
Segment Information | Segment Information- The Company reports segment information based on the internal structure and reporting of the Companys operations. |
Net Income Per Share | Net Income Per Share- |
Use of Estimates | Use of Estimates- |
Reclassifications | Reclassifications- |
Recent Accounting Pronouncements | Recent Accounting Pronouncements- In August 2016, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) No. 2016-15, Statement of Cash Flows (Topic 230): Classification of Certain Cash Receipts and Cash Payments. This ASU includes specific guidance to address diversity in how certain cash receipts and cash payments are presented and classified in the statement of cash flows. The ASU is effective for annual reporting periods beginning after December 15, 2017 and interim periods within those annual periods. The Company does not expect the adoption of this ASU to have a significant impact on the consolidated financial statements. In February 2016, the FASB issued ASU No. 2016-02, Leases (Topic 842). The ASU will increase transparency and comparability among entities by recognizing lease assets and lease liabilities on the balance sheet and disclosing key information about leasing arrangements. The ASU will require lessees to recognize in the balance sheet a liability to make lease payments (the lease liability) and a right-of-use asset representing its right to use the underlying asset for the lease term. The ASU is effective for annual reporting periods beginning after December 15, 2018 and interim periods within those annual periods. The impact of adopting this ASU is not expected to be significant based on current lease agreements. In May 2014, the FASB issued 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, with early adoption permitted. The Company has reviewed its revenue sources and contracts within the scope of the ASU and based on its evaluation to date, does not anticipate this standard will have a material impact on its consolidated financial statements. The Company does not plan to early adopt the ASU and has not yet determined the transition method. |
Balance Sheet Details - Invento
Balance Sheet Details - Inventory (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Tables/Schedules | |
Balance Sheet Details - Inventory | December 31, 2016 December 31, 2015 Inventories: $ 1,675,143 $ 1,923,932 1,684,321 1,606,389 1,740,229 1,584,891 5,099,693 5,115,212 (562,000) (577,000) $ 4,537,693 $ 4,538,212 |
Balance Sheet Details - Propert
Balance Sheet Details - Property, Plant and Equipment (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Tables/Schedules | |
Balance Sheet Details - Property, Plant and Equipment | December 31, 2016 December 31, 2015 Property, Plant and Equipment, net: Land and improvements . $ 1,424,689 $ 1,281,982 Buildings and improvements . 7,908,780 7,271,006 Machinery and equipment . 32,559,468 32,020,937 Capitalized software and other . 1,312,887 1,274,592 43,205,824 41,848,517 Accumulated depreciation .. (30,755,266) (30,150,074) $12,450,558 $ 11,698,443 |
Balance Sheet Details - Other A
Balance Sheet Details - Other Accrued Expenses (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Tables/Schedules | |
Balance Sheet Details - Other Accrued Expenses | December 31, 2016 December 31, 2015 Other Accrued Expenses: Profit sharing plan contribution . $ 384,275 $ 273,238 Property taxes . 92,044 92,526 All other items . 127,855 99,898 $ 604,174 $ 465,662 |
Schedule of Valuation and Quali
Schedule of Valuation and Qualifying Accounts (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Tables/Schedules | |
Schedule of Valuation and Qualifying Accounts | December 31, 2016 December 31, 2015 Allowance for Doubtful Accounts: Balance at beginning of year . $ 150,000 $ 150,000 Charges to statement of income ... 1,566 3,824 Write-offs ... (1,566) (3,824) Balance at end of year $ 150,000 $ 150,000 December 31, 2016 December 31, 2015 Inventory Valuation Reserves: Balance at beginning of year . $ 577,000 $ 618,000 Charges to statement of income ... 80,793 77,577 Write-offs ... (95,793) (118,577) Balance at end of year $ 562,000 $ 577,000 |
Provision for Income Tax Expens
Provision for Income Tax Expense (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Tables/Schedules | |
Provision for Income Tax Expense | 2016 2015 Current: Federal .. $ 1,005,000 $ 576,000 State 52,000 35,000 Deferred 134,000 233,000 $ 1,191,000 $ 844,000 |
Schedule of Effective Income Ta
Schedule of Effective Income Tax Rate Reconciliation (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Tables/Schedules | |
Schedule of Effective Income Tax Rate Reconciliation | The following is a reconciliation of the statutory federal income tax rate to the actual effective tax rate: 2016 2015 Amount % Amount % Expected tax at U.S. statutory rate $ 1,206 ,000 34. 0 $ 861,000 34.0 Permanent differences (49,000) (1.4) (40,000) (1.6) State taxes, net of federal benefit . 34,000 1.0 23,000 0.9 Income tax expense $ 1,191,000 33.6 $ 844,000 33.3 |
Schedule of Deferred Tax Assets
Schedule of Deferred Tax Assets and Liabilities (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Tables/Schedules | |
Schedule of Deferred Tax Assets and Liabilities | 2016 2015 Depreciation and amortization .. $ (1,432,275) $ (1,319,275) Inventory .. 240,647 263,723 Accrued vacation 110,246 109,193 Allowance for doubtful accounts .. 53,625 53,625 Other, net . (327) (1,350) $ (1,028,084) $ (894,084) |
Other Income (Tables)
Other Income (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Tables/Schedules | |
Other Income | 2016 2015 Interest income . $ 41,880 $ 26,544 Other .. 23,375 17,899 $ 65,255 $ 44,443 |
Schedule of Segment Reporting I
Schedule of Segment Reporting Information (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Tables/Schedules | |
Schedule of Segment Reporting Information | Fastener Assembly Equipment Other Consolidated Year Ended December 31, 2016: Net Sales $ 33,126,599 $ 3,895,779 $ 0 $ 37,022,378 Depreciation ... 1,078,281 93,876 70,200 1,242,357 Segment operating profit 4,689,749 1,350,277 0 6,040,026 Selling and administrative expenses .. 0 0 (2,557,301) (2,557,301) Other income .. 0 0 65,255 65,255 Income before income taxes 3,547,980 Capital expenditures . 1,683,953 189,568 154,339 2,027,860 Segment assets: Accounts receivable, net ... 5,036,251 287,268 0 5,323,519 Inventories, net ... 3,639,940 897,753 0 4,537,693 Property, plant and equipment, net . 10,282,847 1,564,702 603,009 12,450,558 Other assets 0 0 8,892,539 8,892,539 31,204,309 Year Ended December 31, 2015: Net sales . $ 32,590,015 $ 3,584,589 $ 0 $ 36,174,604 Depreciation ... 1,101,210 80,191 80,045 1,261,446 Segment operating profit 3,692,805 981,326 0 4,674,131 Selling and administrative expenses .. 0 0 (2,186,933) (2,186,933) Other income .. 0 0 44,443 44,443 Income before income taxes 2,531,641 Capital expenditures . 1,545,533 455,139 103,595 2,104,267 Segment assets: Accounts receivable, net 5,084,535 353,797 0 5,438,332 Inventories, net ... 3,549,655 988,557 0 4,538,212 Property, plant and equipment, net . 9,732,333 1,469,010 497,100 11,698,443 Other assets 0 0 8,022,959 8,022,959 29,697,946 |
Estimated Useful Lives by Asset
Estimated Useful Lives by Asset Category (Details) | 12 Months Ended |
Dec. 31, 2016 | |
Land Improvements | Minimum | |
Property, Plant and Equipment, Useful Life | 15 years |
Land Improvements | Maximum | |
Property, Plant and Equipment, Useful Life | 25 years |
Building Improvements | Minimum | |
Property, Plant and Equipment, Useful Life | 10 years |
Building Improvements | Maximum | |
Property, Plant and Equipment, Useful Life | 35 years |
Machinery and Equipment | Minimum | |
Property, Plant and Equipment, Useful Life | 7 years |
Machinery and Equipment | Maximum | |
Property, Plant and Equipment, Useful Life | 15 years |
Software and Software Development Costs | Minimum | |
Property, Plant and Equipment, Useful Life | 3 years |
Software and Software Development Costs | Maximum | |
Property, Plant and Equipment, Useful Life | 5 years |
Other Capitalized Property Plant and Equipment | Minimum | |
Property, Plant and Equipment, Useful Life | 3 years |
Other Capitalized Property Plant and Equipment | Maximum | |
Property, Plant and Equipment, Useful Life | 15 years |
Uncertain Tax Positions and Unr
Uncertain Tax Positions and Unrecognized Tax Benefits (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2016 | Dec. 31, 2015 | |
Details | ||
Liability for Uncertain Tax Positions | $ 0 | $ 0 |
Unrecognized Tax Benefits | $ 0 | $ 0 |
Weighted Avg. Nunber of Shares
Weighted Avg. Nunber of Shares Outstanding (Details) - shares | 12 Months Ended | |
Dec. 31, 2016 | Dec. 31, 2015 | |
Details | ||
Weighted Average Common Shares Outstanding | 966,132 | 966,132 |
Balance Sheet Details - Inven27
Balance Sheet Details - Inventory (Details) - USD ($) | Dec. 31, 2016 | Dec. 31, 2015 |
Details | ||
Raw Materials | $ 1,675,143 | $ 1,923,932 |
Work in Process | 1,684,321 | 1,606,389 |
Finished Goods | 1,740,229 | 1,584,891 |
Valuation reserves | (562,000) | (577,000) |
Inventories, net | $ 4,537,693 | $ 4,538,212 |
Balance Sheet Details - Prope28
Balance Sheet Details - Property, Plant and Equipment (Details) - USD ($) | Dec. 31, 2016 | Dec. 31, 2015 |
Details | ||
Land and improvements | $ 1,424,689 | $ 1,281,982 |
Buildings and improvements | 7,908,780 | 7,271,006 |
Machinery and equipment | 32,559,468 | 32,020,937 |
Capitalized software and other | 1,312,887 | 1,274,592 |
Less Accumulated depreciation | (30,755,266) | (30,150,074) |
Property, Plant and Equipment, net | $ 12,450,558 | $ 11,698,443 |
Balance Sheet Details - Other29
Balance Sheet Details - Other Accrued Expenses (Details) - USD ($) | Dec. 31, 2016 | Dec. 31, 2015 |
Details | ||
Profit sharing plan contribution | $ 384,275 | $ 273,238 |
Property taxes | 92,044 | 92,526 |
All other items | 127,855 | 99,898 |
Other accrued expenses | $ 604,174 | $ 465,662 |
Schedule of Valuation and Qua30
Schedule of Valuation and Qualifying Accounts (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2016 | Dec. 31, 2015 | |
Allowance for Doubtful Accounts | ||
Balance at beginning of year | $ 150,000 | $ 150,000 |
Charges to statement of income | 1,566 | 3,824 |
Write-offs | (1,566) | (3,824) |
Balance at end of year | 150,000 | 150,000 |
Inventory Valuation Reserve | ||
Balance at beginning of year | 577,000 | 618,000 |
Charges to statement of income | 80,793 | 77,577 |
Write-offs | (95,793) | (118,577) |
Balance at end of year | $ 562,000 | $ 577,000 |
Provision for Income Tax Expe31
Provision for Income Tax Expense (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2016 | Dec. 31, 2015 | |
Details | ||
Provision for federal income tax expense, current | $ 1,005,000 | $ 576,000 |
Provision for state income tax, current | 52,000 | 35,000 |
Provision for income tax expense, deferred | 134,000 | 233,000 |
Provision for income taxes | $ 1,191,000 | $ 844,000 |
Schedule of Effective Income 32
Schedule of Effective Income Tax Rate Reconciliation (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2016 | Dec. 31, 2015 | |
Details | ||
Expected tax at U.S. statutory rate | $ 1,206,000 | $ 861,000 |
Expected tax at U.S. statutory rate, % | 34.00% | 34.00% |
Permanent differences | $ (49,000) | $ (40,000) |
Permanent differences, % | (1.40%) | (1.60%) |
State taxes, net of federal benefit | $ 34,000 | $ 23,000 |
State taxes, net of federal benefit, % | 1.00% | 0.90% |
Income tax expense | $ 1,191,000 | $ 844,000 |
Income tax expense, % | 33.60% | 33.30% |
Schedule of Deferred Tax Asse33
Schedule of Deferred Tax Assets and Liabilities (Details) - USD ($) | Dec. 31, 2016 | Dec. 31, 2015 |
Details | ||
Depreciation and amortization | $ (1,432,275) | $ (1,319,275) |
Inventory | 240,647 | 263,723 |
Accrued vacation | 110,246 | 109,193 |
Allowance for doubtful accounts | 53,625 | 53,625 |
Other, net | (327) | (1,350) |
Deferred Tax Assets and Liabilities | $ (1,028,084) | $ (894,084) |
Deferred Tax Valuation Allowanc
Deferred Tax Valuation Allowance (Details) - USD ($) | Dec. 31, 2016 | Dec. 31, 2015 |
Details | ||
Deferred tax assets valuation allowance | $ 0 | $ 0 |
Profit Sharing Plan (Details)
Profit Sharing Plan (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2016 | Dec. 31, 2015 | |
Details | ||
Defined Contribution Plan, Employer Discretionary Contribution Amount | $ 384,000 | $ 273,000 |
Other Income (Details)
Other Income (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2016 | Dec. 31, 2015 | |
Details | ||
Interest income | $ 41,880 | $ 26,544 |
Other nonoperating income | 23,375 | 17,899 |
Other income | $ 65,255 | $ 44,443 |
Schedule of Segment Reporting37
Schedule of Segment Reporting Information (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | ||
Net sales | $ 37,022,378 | $ 36,174,604 | |
Depreciation and amortization | 1,242,357 | 1,261,446 | |
Segment operating profit | 6,040,026 | 4,674,131 | |
Selling and administrative expenses | (2,557,301) | (2,186,933) | |
Other income | 65,255 | 44,443 | |
Capital expenditures | 2,027,860 | 2,104,267 | |
Accounts receivable, net | [1] | 5,323,519 | 5,438,332 |
Inventories, net | 4,537,693 | 4,538,212 | |
Property, plant and equipment, net | 12,450,558 | 11,698,443 | |
Other assets | 8,892,539 | 8,022,959 | |
Fastener | |||
Net sales | 33,126,599 | 32,590,015 | |
Depreciation and amortization | 1,078,281 | 1,101,210 | |
Segment operating profit | 4,689,749 | 3,692,805 | |
Selling and administrative expenses | 0 | 0 | |
Other income | 0 | 0 | |
Capital expenditures | 1,683,953 | 1,545,533 | |
Accounts receivable, net | 5,036,251 | 5,084,535 | |
Inventories, net | 3,639,940 | 3,549,655 | |
Property, plant and equipment, net | 10,282,847 | 9,732,333 | |
Other assets | 0 | 0 | |
Assembly Equipment | |||
Net sales | 3,895,779 | 3,584,589 | |
Depreciation and amortization | 93,876 | 80,191 | |
Segment operating profit | 1,350,277 | 981,326 | |
Selling and administrative expenses | 0 | 0 | |
Other income | 0 | 0 | |
Capital expenditures | 189,568 | 455,139 | |
Accounts receivable, net | 287,268 | 353,797 | |
Inventories, net | 897,753 | 988,557 | |
Property, plant and equipment, net | 1,564,702 | 1,469,010 | |
Other assets | 0 | 0 | |
Unallocated Corporate | |||
Net sales | 0 | 0 | |
Depreciation and amortization | 70,200 | 80,045 | |
Segment operating profit | 0 | 0 | |
Selling and administrative expenses | (2,557,301) | (2,186,933) | |
Other income | 65,255 | 44,443 | |
Capital expenditures | 154,339 | 103,595 | |
Accounts receivable, net | 0 | 0 | |
Inventories, net | 0 | 0 | |
Property, plant and equipment, net | 603,009 | 497,100 | |
Other assets | $ 8,892,539 | $ 8,022,959 | |
[1] | Net of allowance of $150,000. |
Summary of Percentage of Revenu
Summary of Percentage of Revenues and A/R from Major Customers (Details) | 12 Months Ended | |
Dec. 31, 2016 | Dec. 31, 2015 | |
TIGroupAutomotiveSystemsMember | ||
Percentage of revenues from major customers | 19.00% | 21.00% |
Percentage of Accounts Receivable balances | 22 | 26 |
FisherCompanyMember | ||
Percentage of revenues from major customers | 12.00% | 12.00% |
Percentage of Accounts Receivable balances | 12 | 13 |
Commitments and Contingencies (
Commitments and Contingencies (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2016 | Dec. 31, 2015 | |
Details | ||
Rent Expense | $ 26,000 | $ 26,000 |
Subsequent Events (Details)
Subsequent Events (Details) | 12 Months Ended |
Dec. 31, 2016USD ($)$ / shares | |
Details | |
Dividend declaration date | Feb. 20, 2017 |
Dividends per share | $ / shares | $ 0.55 |
Dividends payable amount, total | $ | $ 531,372 |
Dividends Payable, Date to be Paid | Mar. 20, 2017 |
Dividends Payable, Date of Record | Mar. 3, 2017 |