Document and Entity Information
Document and Entity Information - USD ($) | 12 Months Ended | ||
Dec. 31, 2018 | Mar. 18, 2019 | Jun. 30, 2018 | |
Details | |||
Registrant Name | CHICAGO RIVET & MACHINE CO. | ||
Registrant CIK | 0000019871 | ||
SEC Form | 10-K | ||
Period End date | Dec. 31, 2018 | ||
Fiscal Year End | --12-31 | ||
Trading Symbol | CVR | ||
Tax Identification Number (TIN) | 360904920 | ||
Number of common stock shares outstanding | 966,132 | ||
Public Float | $ 25,335,536 | ||
Filer Category | Non-accelerated Filer | ||
Current with reporting | Yes | ||
Voluntary filer | No | ||
Well-known Seasoned Issuer | No | ||
Shell Company | false | ||
Small Business | true | ||
Emerging Growth Company | false | ||
Amendment Flag | false | ||
Document Fiscal Year Focus | 2018 | ||
Document Fiscal Period Focus | FY | ||
Entity Incorporation, State Country Name | Illinois | ||
Entity Address, Address Line One | 901 Frontenac Road | ||
Entity Address, City or Town | Naperville | ||
Entity Address, State or Province | Illinois | ||
Entity Address, Postal Zip Code | 60563 | ||
City Area Code | 630 | ||
Local Phone Number | 357-8500 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) | Dec. 31, 2018 | Dec. 31, 2017 |
Current Assets | ||
Cash and Cash Equivalents | $ 706,873 | $ 1,152,569 |
Certificates of Deposit | 7,063,000 | 7,810,000 |
Accounts Receivable - Less allowances of $140,000 | 5,529,307 | 5,326,650 |
Inventories, net | 6,100,391 | 4,528,100 |
Prepaid Income Taxes | 150,686 | 84,112 |
Other Current Assets | 438,222 | 357,918 |
Total Current Assets | 19,988,479 | 19,259,349 |
Property, Plant and Equipment, net | 13,258,146 | 12,556,953 |
Total Assets | 33,246,625 | 31,816,302 |
Current Liabilities | ||
Accounts Payable | 1,060,231 | 737,040 |
Accrued Wages and Salaries | 701,434 | 674,316 |
Other Accrued Expenses | 475,973 | 495,132 |
Unearned Revenue and Customer Deposits | 328,154 | 312,775 |
Total Current Liabilities | 2,565,792 | 2,219,263 |
Deferred Income Taxes, net | 921,084 | 737,084 |
Total Liabilities | 3,486,876 | 2,956,347 |
Shareholders' Equity | ||
Preferred Stock, No Par Value, 500,000 Shares Authorized: None Outstanding | 0 | 0 |
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 | 32,096,617 | 31,196,823 |
Treasury Stock, 171,964 Shares at cost | (3,922,098) | (3,922,098) |
Total Shareholders' Equity | 29,759,749 | 28,859,955 |
Total Liabilities and Shareholders' Equity | $ 33,246,625 | $ 31,816,302 |
Consolidated Balance Sheets - P
Consolidated Balance Sheets - Parenthetical - USD ($) | Dec. 31, 2018 | Dec. 31, 2017 |
Details | ||
Allowance for Doubtful Accounts Receivable, Current | $ 140,000 | $ 140,000 |
Preferred Stock, Par or Stated Value Per Share | $ 0 | $ 0 |
Preferred Stock, Shares Authorized | 500,000 | 500,000 |
Preferred Stock, Shares Outstanding | 0 | 0 |
Common Stock, Par or Stated Value Per Share | $ 1 | $ 1 |
Common Stock, Shares Authorized | 4,000,000 | 4,000,000 |
Common Stock, Shares, Issued | 1,138,096 | 1,138,096 |
Common Stock, Shares, Outstanding | 966,132 | 966,132 |
Treasury Stock, Shares | 171,964 | 171,964 |
Consolidated Statements of Inco
Consolidated Statements of Income - USD ($) | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Consolidated Statements of Income | ||
Net Sales | $ 37,174,249 | $ 35,764,714 |
Cost of Goods Sold | 29,268,490 | 27,850,992 |
Gross Profit | 7,905,759 | 7,913,722 |
Selling and Administrative Expenses | 5,503,111 | 5,548,541 |
Operating Profit | 2,402,648 | 2,365,181 |
Other Income | 153,537 | 100,901 |
Income Before Income Taxes | 2,556,185 | 2,466,082 |
Provision for Income Taxes | 555,000 | 387,000 |
Net Income | $ 2,001,185 | $ 2,079,082 |
Net Income Per Share | $ 2.07 | $ 2.15 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Cash Flows from Operating Activities: | ||
Net Income | $ 2,001,185 | $ 2,079,082 |
Adjustments to Reconcile Net Income to Net Cash Provided by Operating Activities: | ||
Depreciation and Amortization | 1,308,448 | 1,231,546 |
Gain on the Sale of Equipment | (13,086) | (1,700) |
Deferred Income Taxes | 184,000 | (291,000) |
Changes in Operating Assets and Liabilities: | ||
Accounts Receivable, net | (202,657) | (3,131) |
Inventories, net | (1,572,291) | 9,593 |
Other Current Assets | (146,878) | 38,034 |
Accounts Payable | 298,348 | 29,620 |
Accrued Wages and Salaries | 27,118 | (16,210) |
Other Accrued Expenses | (19,159) | (109,042) |
Unearned Revenue and Customer Deposits | 15,379 | 26,642 |
Net Cash Provided by Operating Activities | 1,880,407 | 2,993,434 |
Cash Flows from Investing Activities: | ||
Capital Expenditures | (1,998,347) | (1,333,988) |
Proceeds from the Sale of Equipment | 26,635 | 1,700 |
Proceeds from Certificates of Deposit | 5,727,000 | 7,063,000 |
Purchases of Certificates of Deposit | (4,980,000) | (6,814,000) |
Net Cash Used in Investing Activities | (1,224,712) | (1,083,288) |
Cash Flows from Financing Activities: | ||
Cash Dividends Paid | (1,101,391) | (1,111,052) |
Net Cash Used in Financing Activities | (1,101,391) | (1,111,052) |
Net Increase (Decrease) in Cash and Cash Equivalents | (445,696) | 799,094 |
Beginning of Year | 1,152,569 | 353,475 |
End of Year | 706,873 | 1,152,569 |
Net Cash Paid for Income Taxes | 437,574 | 706,000 |
Supplemental Schedule of Non-cash Investing Activities: | ||
Capital Expenditures in Accounts Payable | $ 24,843 | $ 3,953 |
Consolidated Statements of Reta
Consolidated Statements of Retained Earnings - USD ($) | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Consolidated Statements of Retained Earnings | ||
Retained Earnings at Beginning of Year | $ 31,196,823 | $ 30,228,793 |
Net Income | 2,001,185 | 2,079,082 |
Cash Dividends Paid, $1.14 and $1.15 Per Share in 2018 and 2017, respectively | (1,101,391) | (1,111,052) |
Retained Earnings at End of Year | $ 32,096,617 | $ 31,196,823 |
Consolidated Statements of Re_2
Consolidated Statements of Retained Earnings - Parenthetical - $ / shares | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Details | ||
Common Stock, Dividends, Per Share, Declared | $ 1.14 | $ 1.15 |
1 - Nature of Business and Sign
1 - Nature of Business and Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2018 | |
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- Revenue is recognized when control of the promised goods or services is transferred to our customers, generally upon shipment of goods or completion of services, 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, which vary over time. The Company records a liability and reduction in sales for estimated product returns based upon historical experience. If we determine that our 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 December 31, 2018 and 2017, reserves for warranty claims were not material. Cash received by the Company prior to shipment is recorded as unearned revenue. Shipping and handling fees billed to customers are recognized in net sales, and related costs as cost of sales, when incurred. 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 40 years Buildings and improvements 10 to 40 years Machinery and equipment 5 to 18 years Capitalized software costs 3 to 5 years Other equipment 3 to 10 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, 2018 and 2017. 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, 2018 and 2017, 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 2018 or 2017. The Companys federal income tax returns for the 2015 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 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 2015, 2016 and 2017 federal income tax returns will expire on September 15, 2019, 2020 and 2021, respectively. The Companys state income tax returns for the 2015 through 2017 tax years are subject to examination by various state authorities with the latest closing period on October 31, 2021. 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- Recent Accounting Pronouncements- In June 2016, the FASB issued ASU No. 2016-13, Financial Instruments - Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments, which amends the impairment model by requiring entities to use a forward-looking approach based on expected losses rather than incurred losses to estimate credit losses on certain types of financial instruments, including trade receivables. This may result in the earlier recognition of allowances for losses. The new guidance is effective for annual periods beginning after December 15, 2019, including interim periods within those fiscal years, with early adoption permitted. Management has not yet completed its assessment of the impact of the new standard on the Companys consolidated financial statements. Currently, the Company believes that the most notable impact of this ASU may relate to its processes around the assessment of the adequacy of its allowance for doubtful accounts on trade accounts receivable. In February 2016, the FASB issued ASU No. 2016-02, Leases (Topic 842). The ASU is intended to increase transparency and comparability among entities by recognizing lease assets and lease liabilities on the balance sheet and disclosing key information about leasing arrangements when the lease has a term of more than 12 months. 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. |
2 - Balance Sheet Details
2 - Balance Sheet Details | 12 Months Ended |
Dec. 31, 2018 | |
Notes | |
2 - Balance Sheet Details | 2-Balance Sheet Details December 31, 2018 December 31, 2017 Inventories: Raw materials $ 2,798,918 $ 1,812,603 Work in process 1,878,977 1,604,867 Finished goods 2,001,496 1,674,630 6,679,391 5,092,100 Valuation reserves (579,000) (564,000) $ 6,100,391 $ 4,528,100 December 31, 2018 December 31, 2017 Property, Plant and Equipment, net: Land and improvements $ 1,632,299 $ 1,571,552 Buildings and improvements 8,292,749 8,039,831 Machinery and equipment 34,196,661 33,208,675 Capitalized software and other 1,372,215 1,362,714 45,493,924 44,182,772 Accumulated depreciation (32,235,778) (31,625,819) $ 13,258,146 $ 12,556,953 December 31, 2018 December 31, 2017 Other Accrued Expenses: Profit sharing plan contribution $ 277,743 $ 266,398 Property taxes 91,527 92,620 All other items 106,703 136,114 $ 475,973 $ 495,132 December 31, 2018 December 31, 2017 Allowance for Doubtful Accounts: Balance at beginning of year . $ 140,000 $ 150,000 Charges to statement of income ... 0 6,435 Write-offs ... 0 (16,435) Balance at end of year $ 140,000 $ 140,000 December 31, 2018 December 31, 2017 Inventory Valuation Reserves: Balance at beginning of year . $ 564,000 $ 562,000 Charges to statement of income ... 17,870 75,023 Write-offs ... (2,870) (73,023) Balance at end of year $ 579,000 $ 564,000 |
3 - Income Taxes
3 - Income Taxes | 12 Months Ended |
Dec. 31, 2018 | |
Notes | |
3 - Income Taxes | 3-Income Taxes 2018 2017 Current: Federal .. $ 351,000 $ 647,000 State 20,000 31,000 Deferred 184,000 (291,000) $ 555,000 $ 387,000 On December 22, 2017, the Tax Cuts and Jobs Act (the Act) was signed into law. The Act includes significant changes to the taxation of corporations, including a reduction in the top corporate tax rate from 35% to 21%, effective January 1, 2018. Due to the enactment of the new tax law, we re-measured our deferred tax assets and liabilities using the rate at which we expect them to be recovered or settled. As a result, the Company recognized a $432,000 tax benefit for the year ended December 31, 2017 that is reflected in the 2017 income tax expense. The following is a reconciliation of the statutory federal income tax rate to the actual effective tax rate: 2018 2017 Amount % Amount % Expected tax at U.S. statutory rate $ 537 ,000 21.0 $ 838,000 34.0 Impact of the Act .. 0 0 (432,000) (17.5) Permanent differences 2,000 0.1 (39,000) (1.6) State taxes, net of federal benefit . 16,000 0.6 20,000 0.8 Income tax expense $ 555,000 21.7 $ 387,000 15.7 The Companys effective tax rate was lower than the U.S. federal statutory rate in 2017 primarily due to the impact of the new tax law. The deferred tax assets (liabilities) consist of the following: 2018 2017 Depreciation and amortization $ (1,190,597) $ (988,334) Inventory 164,220 149,460 Accrued vacation 74,177 70,973 Allowance for doubtful accounts 31,500 31,500 Other, net (384) (683) $ (921,084) $ (737,084) 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, 2018 or 2017. |
4 - Profit Sharing Plan
4 - Profit Sharing Plan | 12 Months Ended |
Dec. 31, 2018 | |
Notes | |
4 - Profit Sharing Plan | 4-Profit Sharing Plan- |
5 - Other Income
5 - Other Income | 12 Months Ended |
Dec. 31, 2018 | |
Notes | |
5 - Other Income | 5-Other Income- 2018 2017 Interest income . $ 120,141 $ 75,926 Other 33,396 24,975 $ 153,537 $ 100,901 |
6 - Segment Information
6 - Segment Information | 12 Months Ended |
Dec. 31, 2018 | |
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, 2018: Net Sales $ 33,712,458 $ 3,461,791 $ 0 $ 37,174,249 Depreciation ... 1,161,082 112,942 34,424 1,308,448 Segment operating profit 3,731,998 1,108,248 0 4,840,246 Selling and administrative expenses .. 0 0 (2,437,598) (2,437,598) Other income .. 0 0 153,537 153,537 Income before income taxes 2,556,185 Capital expenditures . 1,635,115 49,884 338,191 2,023,190 Segment assets: Accounts receivable, net ... 5,196,437 332,870 0 5,529,307 Inventories, net ... 5,075,290 1,025,101 0 6,100,391 Property, plant and equipment, net . 10,726,191 1,579,497 952,458 13,258,146 Other assets 0 0 8,358,781 8,358,781 33,246,625 Year Ended December 31, 2017: Net Sales $ 31,977,964 $ 3,786,750 $ 0 $ 35,764,714 Depreciation ... 1,093,476 100,908 37,162 1,231,546 Segment operating profit 3,574,783 1,350,111 0 4,924,894 Selling and administrative expenses .. 0 0 (2,559,713) (2,559,713) Other income .. 0 0 100,901 100,901 Income before income taxes 2,466,082 Capital expenditures . 1,093,539 178,761 65,641 1,337,941 Segment assets: Accounts receivable, net ... 5,080,191 246,459 0 5,326,650 Inventories, net ... 3,565,361 962,739 0 4,528,100 Property, plant and equipment, net . 10,282,910 1,642,555 631,488 12,556,953 Other assets 0 0 9,404,599 9,404,599 31,816,302 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. The following table presents revenue by segment, further disaggregated by end-market: Fastener Assembly Equipment Consolidated Year Ended December 31, 2018: Automotive $ 22,215,719 $ 237,565 $ 22,453,284 Non-automotive 11,496,739 3,224,226 14,720,965 Total net sales $ 33,712,458 $ 3,461,791 $ 37,174,249 Year Ended December 31, 2017: Automotive $ 22,527,813 $ 192,091 $ 22,719,904 Non-automotive 9,450,151 3,594,659 13,044,810 Total net sales $ 31,977,964 $ 3,786,750 $ 35,764,714 The following table presents revenue by segment, further disaggregated by location: Fastener Assembly Equipment Consolidated Year Ended December 31, 2018: United States $ 29,470,140 $ 3,260,683 $ 32,730,823 Foreign 4,242,318 201,108 4,443,426 Total net sales $ 33,712,458 $ 3,461,791 $ 37,174,249 Year Ended December 31, 2017: United States $ 27,681,055 $ 3,684,135 $ 31,365,190 Foreign 4,296,909 102,615 4,399,524 Total net sales $ 31,977,964 $ 3,786,750 $ 35,764,714 Sales to one customer in the fastener segment accounted for 17 percent of consolidated revenues during 2018 and 19 percent in 2017. The accounts receivable balance for this customer accounted for 15 and 25 percent of consolidated accounts receivable as of December 31, 2018 and 2017, respectively. Sales to two other customers were each 10 percent of consolidated revenue in 2018 and accounted for 12 percent and 17 percent of consolidated accounts receivable as of December 31, 2018. |
7 - Commitments and Contingenci
7 - Commitments and Contingencies | 12 Months Ended |
Dec. 31, 2018 | |
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, 2018 | |
Notes | |
8 - Subsequent Events | 8 - Subsequent Events - |
Significant Accounting Policies
Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2018 | |
Policies | |
Principles of Consolidation | Principles of Consolidation- |
Revenue Recognition | Revenue Recognition- Revenue is recognized when control of the promised goods or services is transferred to our customers, generally upon shipment of goods or completion of services, 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, which vary over time. The Company records a liability and reduction in sales for estimated product returns based upon historical experience. If we determine that our 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 December 31, 2018 and 2017, reserves for warranty claims were not material. Cash received by the Company prior to shipment is recorded as unearned revenue. Shipping and handling fees billed to customers are recognized in net sales, and related costs as cost of sales, when incurred. |
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 40 years Buildings and improvements 10 to 40 years Machinery and equipment 5 to 18 years Capitalized software costs 3 to 5 years Other equipment 3 to 10 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, 2018 and 2017. 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, 2018 and 2017, 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 2018 or 2017. The Companys federal income tax returns for the 2015 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 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 2015, 2016 and 2017 federal income tax returns will expire on September 15, 2019, 2020 and 2021, respectively. The Companys state income tax returns for the 2015 through 2017 tax years are subject to examination by various state authorities with the latest closing period on October 31, 2021. 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- |
Recent Accounting Pronouncements | Recent Accounting Pronouncements- In June 2016, the FASB issued ASU No. 2016-13, Financial Instruments - Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments, which amends the impairment model by requiring entities to use a forward-looking approach based on expected losses rather than incurred losses to estimate credit losses on certain types of financial instruments, including trade receivables. This may result in the earlier recognition of allowances for losses. The new guidance is effective for annual periods beginning after December 15, 2019, including interim periods within those fiscal years, with early adoption permitted. Management has not yet completed its assessment of the impact of the new standard on the Companys consolidated financial statements. Currently, the Company believes that the most notable impact of this ASU may relate to its processes around the assessment of the adequacy of its allowance for doubtful accounts on trade accounts receivable. In February 2016, the FASB issued ASU No. 2016-02, Leases (Topic 842). The ASU is intended to increase transparency and comparability among entities by recognizing lease assets and lease liabilities on the balance sheet and disclosing key information about leasing arrangements when the lease has a term of more than 12 months. 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. |
2 - Balance Sheet Details_ Inve
2 - Balance Sheet Details: Inventory (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Tables/Schedules | |
Inventory | December 31, 2018 December 31, 2017 Inventories: Raw materials $ 2,798,918 $ 1,812,603 Work in process 1,878,977 1,604,867 Finished goods 2,001,496 1,674,630 6,679,391 5,092,100 Valuation reserves (579,000) (564,000) $ 6,100,391 $ 4,528,100 |
2 - Balance Sheet Details_ Prop
2 - Balance Sheet Details: Property, Plant and Equipment (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Tables/Schedules | |
Property, Plant and Equipment | December 31, 2018 December 31, 2017 Property, Plant and Equipment, net: Land and improvements $ 1,632,299 $ 1,571,552 Buildings and improvements 8,292,749 8,039,831 Machinery and equipment 34,196,661 33,208,675 Capitalized software and other 1,372,215 1,362,714 45,493,924 44,182,772 Accumulated depreciation (32,235,778) (31,625,819) $ 13,258,146 $ 12,556,953 |
2 - Balance Sheet Details_ Othe
2 - Balance Sheet Details: Other Accrued Expenses (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Tables/Schedules | |
Other Accrued Expenses | December 31, 2018 December 31, 2017 Other Accrued Expenses: Profit sharing plan contribution $ 277,743 $ 266,398 Property taxes 91,527 92,620 All other items 106,703 136,114 $ 475,973 $ 495,132 |
2 - Balance Sheet Details_ Sche
2 - Balance Sheet Details: Schedule of Valuation and Qualifying Accounts (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Tables/Schedules | |
Schedule of Valuation and Qualifying Accounts | December 31, 2018 December 31, 2017 Allowance for Doubtful Accounts: Balance at beginning of year . $ 140,000 $ 150,000 Charges to statement of income ... 0 6,435 Write-offs ... 0 (16,435) Balance at end of year $ 140,000 $ 140,000 December 31, 2018 December 31, 2017 Inventory Valuation Reserves: Balance at beginning of year . $ 564,000 $ 562,000 Charges to statement of income ... 17,870 75,023 Write-offs ... (2,870) (73,023) Balance at end of year $ 579,000 $ 564,000 |
3 - Income Taxes_ Provision for
3 - Income Taxes: Provision for Income Tax Exense (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Tables/Schedules | |
Provision for Income Tax Exense | 2018 2017 Current: Federal .. $ 351,000 $ 647,000 State 20,000 31,000 Deferred 184,000 (291,000) $ 555,000 $ 387,000 |
3 - Income Taxes_ Schedule of E
3 - Income Taxes: Schedule of Effective Income Tax Rate Reconciliation (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Tables/Schedules | |
Schedule of Effective Income Tax Rate Reconciliation | 2018 2017 Amount % Amount % Expected tax at U.S. statutory rate $ 537 ,000 21.0 $ 838,000 34.0 Impact of the Act .. 0 0 (432,000) (17.5) Permanent differences 2,000 0.1 (39,000) (1.6) State taxes, net of federal benefit . 16,000 0.6 20,000 0.8 Income tax expense $ 555,000 21.7 $ 387,000 15.7 |
3 - Income Taxes_ Schedule of D
3 - Income Taxes: Schedule of Deferred Tax Assets and Liabilities (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Tables/Schedules | |
Schedule of Deferred Tax Assets and Liabilities | 2018 2017 Depreciation and amortization $ (1,190,597) $ (988,334) Inventory 164,220 149,460 Accrued vacation 74,177 70,973 Allowance for doubtful accounts 31,500 31,500 Other, net (384) (683) $ (921,084) $ (737,084) |
5 - Other Income_ Other Income
5 - Other Income: Other Income (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Tables/Schedules | |
Other Income | 2018 2017 Interest income . $ 120,141 $ 75,926 Other 33,396 24,975 $ 153,537 $ 100,901 |
6 - Segment Information_ Schedu
6 - Segment Information: Schedule of Segment Reporting Information (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Tables/Schedules | |
Schedule of Segment Reporting Information | Fastener Assembly Equipment Other Consolidated Year Ended December 31, 2018: Net Sales $ 33,712,458 $ 3,461,791 $ 0 $ 37,174,249 Depreciation ... 1,161,082 112,942 34,424 1,308,448 Segment operating profit 3,731,998 1,108,248 0 4,840,246 Selling and administrative expenses .. 0 0 (2,437,598) (2,437,598) Other income .. 0 0 153,537 153,537 Income before income taxes 2,556,185 Capital expenditures . 1,635,115 49,884 338,191 2,023,190 Segment assets: Accounts receivable, net ... 5,196,437 332,870 0 5,529,307 Inventories, net ... 5,075,290 1,025,101 0 6,100,391 Property, plant and equipment, net . 10,726,191 1,579,497 952,458 13,258,146 Other assets 0 0 8,358,781 8,358,781 33,246,625 Year Ended December 31, 2017: Net Sales $ 31,977,964 $ 3,786,750 $ 0 $ 35,764,714 Depreciation ... 1,093,476 100,908 37,162 1,231,546 Segment operating profit 3,574,783 1,350,111 0 4,924,894 Selling and administrative expenses .. 0 0 (2,559,713) (2,559,713) Other income .. 0 0 100,901 100,901 Income before income taxes 2,466,082 Capital expenditures . 1,093,539 178,761 65,641 1,337,941 Segment assets: Accounts receivable, net ... 5,080,191 246,459 0 5,326,650 Inventories, net ... 3,565,361 962,739 0 4,528,100 Property, plant and equipment, net . 10,282,910 1,642,555 631,488 12,556,953 Other assets 0 0 9,404,599 9,404,599 31,816,302 |
6 - Segment Information_ Disagg
6 - Segment Information: Disaggregation of Revenue (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Location | |
Disaggregation of Revenue | Fastener Assembly Equipment Consolidated Year Ended December 31, 2018: United States $ 29,470,140 $ 3,260,683 $ 32,730,823 Foreign 4,242,318 201,108 4,443,426 Total net sales $ 33,712,458 $ 3,461,791 $ 37,174,249 Year Ended December 31, 2017: United States $ 27,681,055 $ 3,684,135 $ 31,365,190 Foreign 4,296,909 102,615 4,399,524 Total net sales $ 31,977,964 $ 3,786,750 $ 35,764,714 |
End-market | |
Disaggregation of Revenue | Fastener Assembly Equipment Consolidated Year Ended December 31, 2018: Automotive $ 22,215,719 $ 237,565 $ 22,453,284 Non-automotive 11,496,739 3,224,226 14,720,965 Total net sales $ 33,712,458 $ 3,461,791 $ 37,174,249 Year Ended December 31, 2017: Automotive $ 22,527,813 $ 192,091 $ 22,719,904 Non-automotive 9,450,151 3,594,659 13,044,810 Total net sales $ 31,977,964 $ 3,786,750 $ 35,764,714 |
Estimated Useful Lives by Asset
Estimated Useful Lives by Asset Category (Details) | 12 Months Ended |
Dec. 31, 2018 | |
Land Improvements | Minimum | |
Property, Plant and Equipment, Useful Life | 15 years |
Land Improvements | Maximum | |
Property, Plant and Equipment, Useful Life | 40 years |
Building Improvements | Minimum | |
Property, Plant and Equipment, Useful Life | 10 years |
Building Improvements | Maximum | |
Property, Plant and Equipment, Useful Life | 40 years |
Machinery and Equipment | Minimum | |
Property, Plant and Equipment, Useful Life | 5 years |
Machinery and Equipment | Maximum | |
Property, Plant and Equipment, Useful Life | 18 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 | 10 years |
Uncertain Tax Positions and Unr
Uncertain Tax Positions and Unrecognized Tax Benefits (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Details | ||
Liability for Uncertain Tax Positions | $ 0 | $ 0 |
Unrecognized Tax Benefits | $ 0 | $ 0 |
Weighted Avg. Number of Shares
Weighted Avg. Number of Shares Outstanding (Details) - shares | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Details | ||
Weighted Average Common Shares Outstanding | 966,132 | 966,132 |
2 - Balance Sheet Details_ In_2
2 - Balance Sheet Details: Inventory (Details) - USD ($) | Dec. 31, 2018 | Dec. 31, 2017 |
Details | ||
Raw materials | $ 2,798,918 | $ 1,812,603 |
Work in process | 1,878,977 | 1,604,867 |
Finished goods | 2,001,496 | 1,674,630 |
Valuation reserves | (579,000) | (564,000) |
Inventories, net | $ 6,100,391 | $ 4,528,100 |
2 - Balance Sheet Details_ Pr_2
2 - Balance Sheet Details: Property, Plant and Equipment (Details) - USD ($) | Dec. 31, 2018 | Dec. 31, 2017 |
Details | ||
Land and improvements | $ 1,632,299 | $ 1,571,552 |
Buildings and improvements | 8,292,749 | 8,039,831 |
Machinery and equipment | 34,196,661 | 33,208,675 |
Capitalized software and other | 1,372,215 | 1,362,714 |
Less: Accumulated depreciation | (32,235,778) | (31,625,819) |
Property, Plant and Equipment, Other, Net | $ 13,258,146 | $ 12,556,953 |
2 - Balance Sheet Details_ Ot_2
2 - Balance Sheet Details: Other Accrued Expenses (Details) - USD ($) | Dec. 31, 2018 | Dec. 31, 2017 |
Details | ||
Profit sharing plan contribution | $ 277,743 | $ 266,398 |
Property taxes | 91,527 | 92,620 |
All other items | 106,703 | 136,114 |
Other Accrued Expenses | $ 475,973 | $ 495,132 |
Schedule of Valuation and Quali
Schedule of Valuation and Qualifying Accounts (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
SEC Schedule, 12-09, Allowance, Credit Loss | ||
Balance at beginning of year | $ 140,000 | $ 150,000 |
Charges to statement of income | 0 | 6,435 |
Write-offs | 0 | (16,435) |
Balance at end of year | 140,000 | 140,000 |
SEC Schedule, 12-09, Reserve, Inventory | ||
Balance at beginning of year | 564,000 | 562,000 |
Charges to statement of income | 17,870 | 75,023 |
Write-offs | (2,870) | (73,023) |
Balance at end of year | $ 579,000 | $ 564,000 |
3 - Income Taxes_ Provision f_2
3 - Income Taxes: Provision for Income Tax Exense (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Details | ||
Provision for Federal income tax expense, Current | $ 351,000 | $ 647,000 |
Provision for State income tax expense, Current | 20,000 | 31,000 |
Provision for income tax expense, Deferred | 184,000 | (291,000) |
Provision for Income Taxes | $ 555,000 | $ 387,000 |
Other Income Tax Disclosures (D
Other Income Tax Disclosures (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Details | ||
Impact of the Act | $ 0 | $ 432,000 |
Deferred tax assets valuation allowance | $ 0 | $ 0 |
3 - Income Taxes_ Schedule of_2
3 - Income Taxes: Schedule of Effective Income Tax Rate Reconciliation (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Details | ||
Expected tax at U.S. statutory rate | $ 537,000 | $ 838,000 |
Expected tax at U.S. statutory rate, % | 21.00% | 34.00% |
Impact of the Act | $ 0 | $ (432,000) |
Impact of the Act, % | 0.00% | (17.50%) |
Permanent differences | $ 2,000 | $ (39,000) |
Permanent differences, % | 0.10% | (1.60%) |
State taxes, net of federal benefit | $ 16,000 | $ 20,000 |
State taxes, net of federal benefit, % | 0.60% | 0.80% |
Income tax expense | $ 555,000 | $ 387,000 |
Income tax expense, % | 21.70% | 15.70% |
3 - Income Taxes_ Schedule of_3
3 - Income Taxes: Schedule of Deferred Tax Assets and Liabilities (Details) - USD ($) | Dec. 31, 2018 | Dec. 31, 2017 |
Details | ||
Depreciation and amortization | $ (1,190,597) | $ (988,334) |
Inventory | 164,220 | 149,460 |
Accrued vacation | 74,177 | 70,973 |
Allowance for doubtful accounts | 31,500 | 31,500 |
Other, net | (384) | (683) |
Deferred Tax Assets and Liabilities | $ (921,084) | $ (737,084) |
Profit Sharing Plan (Details)
Profit Sharing Plan (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Details | ||
Defined Contribution Plan, Employer Discretionary Contribution Amount | $ 278,000 | $ 266,000 |
5 - Other Income_ Other Incom_2
5 - Other Income: Other Income (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Details | ||
Interest income . | $ 120,141 | $ 75,926 |
Other nonoperating income | 33,396 | 24,975 |
Other Income | $ 153,537 | $ 100,901 |
6 - Segment Information_ Sche_2
6 - Segment Information: Schedule of Segment Reporting Information (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Net Sales | $ 37,174,249 | $ 35,764,714 |
Depreciation and Amortization | 1,308,448 | 1,231,546 |
Accounts receivable, net | 5,529,307 | 5,326,650 |
Inventories, net | 6,100,391 | 4,528,100 |
Property, plant and equipment, net | 13,258,146 | 12,556,953 |
Fastener | ||
Net Sales | 33,712,458 | 31,977,964 |
Depreciation and Amortization | 1,161,082 | 1,093,476 |
Segment operating profit | 3,731,998 | 3,574,783 |
Selling and administrative expenses | 0 | 0 |
Other Income | 0 | 0 |
Capital expenditures | 1,635,115 | 1,093,539 |
Accounts receivable, net | 5,196,437 | 5,080,191 |
Inventories, net | 5,075,290 | 3,565,361 |
Property, plant and equipment, net | 10,726,191 | 10,282,910 |
Other assets | 0 | 0 |
Assembly Equipment | ||
Net Sales | 3,461,791 | 3,786,750 |
Depreciation and Amortization | 112,942 | 100,908 |
Segment operating profit | 1,108,248 | 1,350,111 |
Selling and administrative expenses | 0 | 0 |
Other Income | 0 | 0 |
Capital expenditures | 49,884 | 178,761 |
Accounts receivable, net | 332,870 | 246,459 |
Inventories, net | 1,025,101 | 962,739 |
Property, plant and equipment, net | 1,579,497 | 1,642,555 |
Other assets | 0 | 0 |
Unallocated Corporate | ||
Net Sales | 0 | 0 |
Depreciation and Amortization | 34,424 | 37,162 |
Segment operating profit | 0 | 0 |
Selling and administrative expenses | (2,437,598) | (2,559,713) |
Other Income | 153,537 | 100,901 |
Capital expenditures | 338,191 | 65,641 |
Accounts receivable, net | 0 | 0 |
Inventories, net | 0 | 0 |
Property, plant and equipment, net | 952,458 | 631,488 |
Other assets | $ 8,358,781 | $ 9,404,599 |
6 - Segment Information_ Disa_2
6 - Segment Information: Disaggregation of Revenue (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Revenue | $ 37,174,249 | $ 35,764,714 |
United States | ||
Revenue | 32,730,823 | 31,365,190 |
Foreign | ||
Revenue | 4,443,426 | 4,399,524 |
Automotive | ||
Revenue | 22,453,284 | 22,719,904 |
Nonautomotive | ||
Revenue | 14,720,965 | 13,044,810 |
Fastener | ||
Revenue | 33,712,458 | 31,977,964 |
Fastener | United States | ||
Revenue | 29,470,140 | 27,681,055 |
Fastener | Foreign | ||
Revenue | 4,242,318 | 4,296,909 |
Fastener | Automotive | ||
Revenue | 22,215,719 | 22,527,813 |
Fastener | Nonautomotive | ||
Revenue | 11,496,739 | 9,450,151 |
Assembly Equipment | ||
Revenue | 3,461,791 | 3,786,750 |
Assembly Equipment | United States | ||
Revenue | 3,260,683 | 3,684,135 |
Assembly Equipment | Foreign | ||
Revenue | 201,108 | 102,615 |
Assembly Equipment | Automotive | ||
Revenue | 237,565 | 192,091 |
Assembly Equipment | Nonautomotive | ||
Revenue | $ 3,224,226 | $ 3,594,659 |
Summary of % of Revenues and A_
Summary of % of Revenues and A/R from Major Customers (Details) | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
T.I. Group Automotive Systems | ||
Percentage of revenues from major customers | 17.00% | 19.00% |
Percentage of accounts receivable balances | 15 | 25 |
Cooper Standard | ||
Percentage of revenues from major customers | 10.00% | |
Percentage of accounts receivable balances | 12 | |
Parker Hannifin | ||
Percentage of revenues from major customers | 10.00% | |
Percentage of accounts receivable balances | 17 |
Commitments and Contingencies (
Commitments and Contingencies (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Details | ||
Rent Expense | $ 26,000 | $ 30,000 |
Subsequent Events (Details)
Subsequent Events (Details) | 12 Months Ended |
Dec. 31, 2018USD ($)$ / shares | |
Dividend declaration date | Feb. 18, 2019 |
Dividends Payable, Date to be Paid | Mar. 20, 2019 |
Dividends Payable, Date of Record | Mar. 5, 2019 |
Regular Quarterly dividend | |
Dividends per share | $ / shares | $ 0.22 |
Dividends payable amount | $ | $ 212,549 |
Extra dividend | |
Dividends per share | $ / shares | $ 0.30 |
Dividends payable amount | $ | $ 289,840 |