0000950137-01-504160.txt : 20011101 0000950137-01-504160.hdr.sgml : 20011101 ACCESSION NUMBER: 0000950137-01-504160 CONFORMED SUBMISSION TYPE: 10-Q PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 20010930 FILED AS OF DATE: 20011030 FILER: COMPANY DATA: COMPANY CONFORMED NAME: CHICAGO RIVET & MACHINE CO CENTRAL INDEX KEY: 0000019871 STANDARD INDUSTRIAL CLASSIFICATION: METALWORKING MACHINERY & EQUIPMENT [3540] IRS NUMBER: 360904920 STATE OF INCORPORATION: IL FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 10-Q SEC ACT: 1934 Act SEC FILE NUMBER: 000-01227 FILM NUMBER: 1770181 BUSINESS ADDRESS: STREET 1: 901 FRONTENAC RD STREET 2: P O BOX 3061 CITY: NAPERVILLE STATE: IL ZIP: 60566 BUSINESS PHONE: 6303578500 MAIL ADDRESS: STREET 1: 901 FRONTENAC RD STREET 2: P O BOX 3061 CITY: NAPERVILLE STATE: IL ZIP: 60566 10-Q 1 c65662e10-q.txt QUARTERLY REPORT SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM 10-Q QUARTERLY REPORT UNDER SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the Quarter ended September 30, 2001 Commission File Number 0-1227 ------------------ -------- CHICAGO RIVET & MACHINE CO. (Exact name of registrant as specified in its charter) ILLINOIS 36-0904920 --------- ------------- (State or other jurisdiction of (I.R.S. Employer Identification No.) incorporation or organization) P.O. Box 3061 90l Frontenac Road Naperville, Illinois 60566 -------------------- ----- (Address of principal executive office) (Zip Code) Registrant's telephone number, including area code (630) 357-8500 -------------- Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes X No ----- ----- Indicate the number of shares outstanding of each of the issuer's classes of common stock, as of the latest practicable date. Class Outstanding at September 30, 2001 ----- --------------------------------- COMMON STOCK, $1.00 PAR VALUE 967,132 SHARES ----------------------------- -------------- CHICAGO RIVET & MACHINE CO. INDEX PART I. FINANCIAL INFORMATION Page Consolidated Balance Sheets at September 30, 2001 and December 31, 2000 2-3 Consolidated Statements of Operations for the Three and Nine Months Ended September 30, 2001 and 2000 4 Consolidated Statements of Retained Earnings for the Nine Months Ended September 30, 2001 and 2000 5 Consolidated Statements of Cash Flows for the Nine Months Ended September 30, 2001 and 2000 6 Notes to the Consolidated Financial Statements 7-9 Management's Discussion and Analysis of Financial Condition and Results of Operations 10 Quantitative and Qualitative Information About Market Risk 11 PART II. OTHER INFORMATION 12-17 1 CHICAGO RIVET & MACHINE CO. Consolidated Balance Sheets September 30, 2001 and December 31, 2000 September 30, December 31, 2001 2000 ----------- ----------- (Unaudited) Assets Current Assets: Cash and cash equivalents $ 2,188,577 $ 2,265,442 Certificates of deposit 1,677,882 1,429,886 Accounts receivable - net of allowances 5,676,025 5,037,231 Inventories: Raw materials 1,715,919 2,010,984 Work in process 1,885,087 2,156,092 Finished goods 2,725,164 3,037,108 ----------- ----------- Total inventories 6,326,170 7,204,184 ----------- ----------- Deferred income taxes 665,191 705,191 Other current assets 407,716 191,668 ----------- ----------- Total current assets 16,941,561 16,833,602 ----------- ----------- Property, Plant and Equipment: Land and improvements 1,010,595 1,010,595 Buildings and improvements 5,686,030 5,677,680 Production equipment, leased machines and other 27,907,894 26,686,705 ----------- ----------- 34,604,519 33,374,980 Less accumulated depreciation 20,391,286 19,051,463 ----------- ----------- Net property, plant and equipment 14,213,233 14,323,517 ----------- ----------- Total assets $31,154,794 $31,157,119 =========== =========== See Notes to the Consolidated Financial Statements 2 CHICAGO RIVET & MACHINE CO. Consolidated Balance Sheets September 30, 2001 and December 31, 2000 September 30, December 31, 2001 2000 ----------- ----------- (Unaudited) Liabilities and Shareholders' Equity Current Liabilities: Current portion of note payable $ 1,800,000 $ 1,800,000 Accounts payable 1,497,022 1,065,561 Accrued wages and salaries 1,189,235 753,577 Contributions due profit sharing plan 257,986 437,076 Other accrued expenses 545,195 774,974 Federal and state income taxes payable 150,908 1,123 ----------- ----------- Total current liabilities 5,440,346 4,832,311 Note payable 2,082,760 3,432,760 Deferred income taxes 1,373,275 1,373,275 ----------- ----------- Total liabilities 8,896,381 9,638,346 ----------- ----------- Commitments and contingencies (Note 4) Shareholders' Equity: Preferred stock, no par value, 500,000 shares authorized: none outstanding - - Common stock, $1.00 par value, 4,000,000 shares authorized: 1,138,096 shares issued 1,138,096 1,138,096 Additional paid-in capital 447,134 447,134 Retained earnings 24,568,305 23,828,665 Treasury stock, 170,964 shares at cost (3,895,122) (3,895,122) ----------- ----------- Total shareholders' equity 22,258,413 21,518,773 ----------- ----------- Total liabilities and shareholders' equity $31,154,794 $31,157,119 =========== =========== See Notes to the Consolidated Financial Statements 3 CHICAGO RIVET & MACHINE CO. Consolidated Statements of Operations For the Three and Nine Months Ended September 30, 2001 and 2000 (Unaudited)
Three Months Ended Nine Months Ended September 30, September 30, ------------------------------ ---------------------------- 2001 2000 2001 2000 ---- ---- ---- ---- Net sales $ 9,342,407 $ 10,284,719 $ 31,070,990 $ 34,958,334 Lease revenue 56,165 60,851 171,662 189,060 ----------- ------------ ------------ ------------ 9,398,572 10,345,570 31,242,652 35,147,394 Cost of goods sold and costs related to lease revenue 7,068,030 8,082,881 23,842,571 25,694,467 ----------- ------------ ------------ ------------ Gross profit 2,330,542 2,262,689 7,400,081 9,452,927 Selling and administrative expenses 1,697,704 1,794,694 5,073,298 6,175,680 ----------- ------------ ------------ ------------ 632,838 467,995 2,326,783 3,277,247 Other income and expenses: Interest income 34,732 55,348 117,946 147,657 Interest expense (52,174) (113,080) (219,548) (274,661) Gain from disposal of equipment 23,844 224 42,436 253 Other income, net of other expense 3,756 5,096 12,058 13,235 ----------- ------------ ------------ ------------ Income before income taxes 642,996 415,583 2,279,675 3,163,731 Provision for income taxes 216,000 141,000 776,000 1,073,000 ----------- ------------ ------------ ------------ Net income $ 426,996 $ 274,583 $ 1,503,675 $ 2,090,731 =========== ============ ============ ============ Average common shares outstanding 967,132 978,532 967,132 1,039,679 =========== ============ ============ ============ Per share data: Net income per share $ 0.44 $ 0.28 $ 1.55 $ 2.01 =========== ============ ============ ============ Cash dividends declared per share $ 0.18 $ 0.18 $ 0.79 $ 0.89 =========== ============ ============ ============
See Notes to the Consolidated Financial Statements 4 CHICAGO RIVET & MACHINE CO. Consolidated Statements of Retained Earnings For the Nine Months Ended September 30, 2001 and 2000 (Unaudited)
2001 2000 ---- ---- Retained earnings at beginning of period $ 23,828,665 $ 22,302,048 Net income for the nine months ended 1,503,675 2,090,731 Cash dividends declared in the period, $.79 and $.89 per share in 2001 and 2000, respectively (764,035) (955,456) ------------ ------------ Retained earnings at end of period $ 24,568,305 $ 23,437,323 ============ ============
See Notes to the Consolidated Financial Statements 5 CHICAGO RIVET & MACHINE CO. Consolidated Statements of Cash Flows For the Nine Months Ended September 30, 2001 and 2000 (Unaudited) 2001 2000 ---------- ---------- Cash flows from operating activities: Net income $1,503,675 $2,090,731 Adjustments to reconcile net income to net cash provided by operating activities: Depreciation 1,418,608 1,400,418 Net gain on the sale of properties (42,436) (253) Deferred income taxes 40,000 50,000 Changes in operating assets and liabilities: Accounts receivable (638,794) 330,243 Inventories 878,014 (18,957) Other current assets (216,048) (15,537) Accounts payable 431,461 (335,847) Accrued expenses 261,569 97,204 Unearned revenue (234,780) 225,105 Income taxes payable 149,785 (693,695) ---------- ---------- Net cash provided by operating activities 3,551,054 3,129,412 ---------- ---------- Cash flows from investing activities: Capital expenditures (1,322,612) (1,564,332) Proceeds from the sale of properties 56,724 15,425 Proceeds from held-to-maturity securities 2,235,989 1,906,327 Purchases of held-to-maturity securities (2,483,985) (2,183,619) ---------- ---------- Net cash used in investing activities (1,513,884) (1,826,199) ---------- ---------- Cash flows from financing activities: Borrowings under term loan agreement - 3,882,760 Payments under term loan agreement (1,350,000) (1,350,000) Purchase of treasury stock - (3,669,972) Cash dividends paid (764,035) (955,456) ---------- ---------- Net cash used in financing activities (2,114,035) (2,092,668) ---------- ---------- Net decrease in cash and cash equivalents (76,865) (789,455) Cash and cash equivalents at beginning of period 2,265,442 3,414,460 ---------- ---------- Cash and cash equivalents at end of period $2,188,577 $2,625,005 ========== ========== See Notes to the Consolidated Financial Statements 6 CHICAGO RIVET & MACHINE CO. NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (Unaudited) 1. In the opinion of the Company, the accompanying unaudited interim financial statements contain all adjustments necessary to present fairly the financial position of the Company as of September 30, 2001 and the results of operations and changes in cash flows for the indicated periods. The Company uses estimated gross profit rates to determine the cost of goods sold during interim periods on a portion of its operations. Actual results could differ from those estimates and will be adjusted, as necessary, following the Company's annual physical inventory in the fourth quarter. The preparation of financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. 2. The results of operations for the three and nine-month period ending September 30, 2001 are not necessarily indicative of the results to be expected for the year. 3. The Company extends credit primarily on the basis of 30-day terms to various companies doing business primarily in the automotive and appliance industries. The Company has a concentration of credit risk primarily within the automotive industry and in the Midwestern United States. 4. 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. 7 CHICAGO RIVET & MACHINE CO. NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (Unaudited) 5. Segment Information--The Company operates in two business segments as determined by its products. The fastener segment includes rivets, cold-formed fasteners and screw-machine products. The assembly equipment segment includes automatic rivet setting machines, parts and tools for such machines and the leasing of automatic rivet setting machines. Information by segment is as follows:
Assembly Fastener Equipment Other Consolidated -------- --------- ----- ------------ Three Months Ended September 30, 2001: Net sales and lease revenue $ 7,748,260 $ 1,650,312 $ - $ 9,398,572 Depreciation 359,590 60,699 57,422 477,711 Segment profit 1,099,633 397,111 - 1,496,744 Selling and administrative expenses 836,306 836,306 Interest expense 52,174 52,174 Interest income (34,732) (34,732) ------------ Income before income taxes 642,996 ------------ Capital expenditures 592,232 - - 592,232 Segment assets: Inventory 3,698,180 2,627,990 - 6,326,170 Property, plant and equipment, net 11,039,833 1,794,312 1,379,088 14,213,233 Other assets - - 10,615,391 10,615,391 ------------ 31,154,794 ------------ Three Months Ended September 30, 2000: Net sales and lease revenue $ 8,022,136 $ 2,323,434 $ - $10,345,570 Depreciation 343,956 63,861 58,983 466,800 Segment profit 599,860 721,841 - 1,321,701 Selling and administrative expenses 848,386 848,386 Interest expense 113,080 113,080 Interest income (55,348) (55,348) ------------ Income before income taxes 415,583 ------------ Capital expenditures 63,635 118,244 12,408 194,287 Segment assets: Inventory 3,957,677 2,985,001 - 6,942,678 Property, plant and equipment, net 10,869,966 1,887,612 1,499,128 14,256,706 Other assets - - 10,763,031 10,763,031 ------------ 31,962,415 ------------
8 CHICAGO RIVET & MACHINE CO. NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (Unaudited)
Assembly Fastener Equipment Other Consolidated -------- --------- ----- ------------ Nine Months Ended September 30, 2001: Net sales and lease revenue $25,042,640 $ 6,200,012 $ - $31,242,652 Depreciation 1,059,653 182,097 176,858 1,418,608 Segment profit 2,967,047 1,786,999 - 4,754,046 Selling and administrative expenses 2,372,769 2,372,769 Interest expense 219,548 219,548 Interest income (117,946) (117,946) ----------- Income before income taxes 2,279,675 ----------- Capital expenditures 1,194,605 13,209 114,798 1,322,612 Nine Months Ended September 30, 2000: Net sales and lease revenue $ 27,759,283 $ 7,388,111 $ - $35,147,394 Depreciation 1,028,718 194,631 177,069 1,400,418 Segment profit 3,885,525 2,440,349 - 6,325,874 Selling and administrative expenses 3,035,139 3,035,139 Interest expense 274,661 274,661 Interest income (147,657) (147,657) ----------- Income before income taxes 3,163,731 ----------- Capital expenditures 1,382,526 161,456 20,350 1,564,332
9 CHICAGO RIVET & MACHINE CO. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS Net sales and lease revenues for the third quarter of 2001 amounted to $9,398,572, which is a decline of 9.2% compared to the same period of 2000. Revenues continue to reflect the weakness in the manufacturing sector of the economy and the related lack of spending for capital equipment. Also, third quarter revenues are traditionally softer than other quarters due to the impact of vacation schedules at our facilities as well as at those of our customers, and this also impacted our revenues during the third quarter. For the third quarter of 2001, revenues from the fastener segment totaled $7,748,260, a decrease of 3.4% compared to the third quarter of 2000. Revenues within the assembly equipment segment declined 29% compared to the third quarter of 2000 and amounted to $1,650,312 during the third quarter of 2001. On a year-to-date basis, 2001 revenues within the fastener segment totaled $25,042,640, a decline of 9.8% compared with the first nine months of 2000, while revenues within the assembly equipment segment amounted to $6,200,012, which is a decline of 16.1% compared to the year earlier period. Despite the lower sales revenues, the company was able to report an improvement in net income for the third quarter of 2001, compared with the third quarter of 2000. Within the fastener segment, a variety of factors allowed us to post quarterly results that were significantly better than those of the third quarter of 2000. These factors include the impact of negotiated reductions in the cost of certain raw material and supplies, reductions in indirect labor and salary expense, and lower repair and maintenance expenses. The quarter to quarter comparison is also more favorable because the third quarter of 2000 included certain unfavorable inventory valuation adjustments which reduced margins in that period. While cost control measures contributed reductions in costs for both segments of our operations, those achieved within the assembly equipment segment were not sufficient to offset the effects of lower volume, and margins fell short of those recorded in the prior year in both the current quarter and on a year-to-date basis. As has been the case throughout the current year, selling and administrative expenses during the third quarter were appreciably below levels of the prior year, mostly due to lower legal and professional fees, as well as reductions in salaries and commissions. Unfortunately, the bankruptcy filing of a large customer generated an increase in bad debt expense of $150,000, which offset much of the savings in administrative expenses during the third quarter of 2001. Overall, net income during the quarter amounted to $426,996, or $.44 per share on 967,132 average shares outstanding during the quarter, compared with $274,583, or $.28 per share on 978,532 average shares outstanding during the third quarter of 2000. For the first nine months, reduced volumes, and the resulting reductions in operating efficiencies, had the effect of reducing gross margins, while significant year to year reductions in selling and administrative expenses partially offset the reduction in gross margins. Working capital at the end of the third quarter amounted to approximately $11.5 million. While this is somewhat below the level at the beginning of the year, it remains adequate for our operations. Inventory levels were further reduced during the third quarter of this year, and at the end of the quarter were nearly $.9 million lower than at the beginning of the year. Capital expenditures amounted to $.6 million during the third quarter and were primarily related to the purchase of equipment used in the manufacture of fasteners. At September 30, the balance due on the term note was $3.9 million and the interest rate was 4.56%. The Company also has a $1.0 million line of credit available through Bank of America, N.A. There is no charge for this facility until it is utilized. We believe that current cash, cash equivalents and the available credit facility will be sufficient to provide adequate working capital to meet the Company's needs for the foreseeable future. The first nine months of 2001 have presented a number of challenges that we anticipate will persist throughout the fourth quarter. The weakness in the economy, especially within the manufacturing sector, is expected to continue, at least in the short term. Accordingly, we plan to continue to emphasize cost controls, to adjust our level of operations in response to any changes in business conditions, and to continue soliciting new, profitable business. The foregoing discussion contains certain "forward-looking statements" which are inherently subject to risks and uncertainties that may cause actual events to differ materially from those discussed herein. Factors which may cause such differences in events include, among other things, our ability to maintain our relationships with our significant customers; increases in the prices of, or limitations on the availability of, our primary raw materials; or a downturn in the automotive industry, upon which we rely for sales revenue, and which is cyclical and dependent on, among other things, consumer spending, international economic conditions and regulations and policies regarding international trade. Many of these factors are beyond our ability to control or predict. Readers are cautioned not to place undue reliance on these forward-looking statements. We undertake no obligation to publish revised forward-looking statements to reflect events or circumstances after the date hereof or to reflect the occurrence of unanticipated events. 10 CHICAGO RIVET & MACHINE CO. QUANTITATIVE AND QUALITATIVE INFORMATION ABOUT MARKET RISK Over time, the Company is exposed to market risks arising from changes in interest rates. The Company has not historically used derivative financial instruments. As of September 30, 2001, $3.88 million of floating-rate debt was exposed to changes in interest rates compared to $5.23 million as of December 31, 2000. This exposure was primarily linked to the London Inter-Bank Offering Rate and the lender's prime rate under the Company's term loan. A hypothetical 10% change in these rates would not have had a material effect on the Company's quarterly earnings. 11 PART II -- OTHER INFORMATION Item 6. Exhibits and Reports on Form 8-K (a) Exhibits 99.1 Interim Report to Shareholders for the quarter ended September 30, 2001. (b) Reports on Form 8-K No reports on Form 8-K were filed during the current period. 12 SIGNATURES Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized. CHICAGO RIVET & MACHINE CO. ----------------------------------- (Registrant) Date: October 30, 2001 /s/ John A. Morrissey ----------------------------------- John A. Morrissey Chairman of the Board of Directors and Chief Executive Officer Date: October 30, 2001 /s/ John C. Osterman ----------------------------------- John C. Osterman President, Chief Operating Officer and Treasurer (Principal Financial Officer) Date: October 30, 2001 /s/ Michael J. Bourg ----------------------------------- Michael J. Bourg Controller (Principal Accounting Officer) 13 CHICAGO RIVET & MACHINE CO. EXHIBITS INDEX TO EXHIBITS Exhibit Number Page ---- 99.1 Interim Report to Shareholders for the quarter ended September 30, 2001 15 - 17 14 EX-99.1 3 c65662ex99-1.txt INTERIM REPORT TO SHAREHOLDERS EXHIBIT 99.1 To Our Shareholders: The comparative results of operations of Chicago Rivet & Machine Co. for the third quarter and first nine months of 2001 and 2000 are summarized below. Net sales and lease revenues for the third quarter of 2001 amounted to $9,398,572, which is a decline of 9.2% compared to the same period of 2000. Revenues continue to reflect the weakness in the manufacturing sector of the economy and the related lack of spending for capital equipment. Also, third quarter revenues are traditionally softer than other quarters due to the impact of vacation schedules at our facilities as well as at those of our customers, and this also impacted our revenues during the third quarter. For the third quarter of 2001, revenues from the fastener segment totaled $7,748,260, a decrease of 3.4% compared to the third quarter of 2000. Revenues within the assembly equipment segment declined 29% compared to the third quarter of 2000 and amounted to $1,650,312 during the third quarter of 2001. On a year-to-date basis, 2001 revenues within the fastener segment totaled $25,042,640, a decline of 9.8% compared with the first nine months of 2000, while revenues within the assembly equipment segment amounted to $6,200,012, which is a decline of 16.1% compared to the year earlier period. Despite the lower sales revenues, the company was able to report an improvement in net income for the third quarter of 2001, compared with the third quarter of 2000. Within the fastener segment, a variety of factors allowed us to post quarterly results that were significantly better than those of the third quarter of 2000. These factors include the impact of negotiated reductions in the cost of certain raw material and supplies, reductions in indirect labor and salary expense, and lower repair and maintenance expenses. The quarter to quarter comparison is also more favorable because the third quarter of 2000 included certain unfavorable inventory valuation adjustments which reduced margins in that period. While cost control measures contributed reductions in costs for both segments of our operations, those achieved within the assembly equipment segment were not sufficient to offset the effects of lower volume, and margins fell short of those recorded in the prior year in both the current quarter and on a year-to-date basis. As has been the case throughout the current year, selling and administrative expenses during the third quarter were appreciably below levels of the prior year, mostly due to lower legal and professional fees, as well as reductions in salaries and commissions. Unfortunately, the bankruptcy filing of a large customer generated an increase in bad debt expense of $150,000, which offset much of the savings in administrative expenses during the third quarter of 2001. Overall, net income during the quarter amounted to $426,996, or $.44 per share on 967,132 average shares outstanding during the quarter, compared with $274,583, or $.28 per share on 978,532 average shares outstanding during the third quarter of 2000. The first nine months of 2001 have presented a number of challenges that we anticipate will persist throughout the fourth quarter. The weakness in the economy, especially within the manufacturing sector, is expected to continue, at least in the short term. Accordingly, we plan to continue to emphasize cost controls, to adjust our level of operations in response to any changes in business conditions, and to continue soliciting new, profitable business. This approach has served us well in the past, and we expect that it will be successful in the future, as well. Respectfully yours, John A. Morrissey John C. Osterman Chairman President October 30, 2001 The foregoing discussion is only intended to provide highlights of operations for the periods covered. Additional information is contained in our Form 10-Q, which will be filed with the SEC and is available to shareholders upon request from the Company, or via the internet through the SEC's EDGAR database. This discussion contains certain "forward-looking statements" which are inherently subject to risks and uncertainties that may cause actual events to differ materially from those discussed herein. Factors which may cause such differences in events include, among other things, our ability to maintain our relationships with our significant customers; increases in the prices of, or limitations on the availability of, our primary raw materials; or a downturn in the automotive industry, upon which we rely for sales revenue, 15 and which is cyclical and dependent on, among other things, consumer spending, international economic conditions and regulations and policies regarding international trade. Many of these factors are beyond our ability to control or predict. Readers are cautioned not to place undue reliance on these forward-looking statements. We undertake no obligation to publish revised forward-looking statements to reflect events or circumstances after the date hereof or to reflect the occurrence of unanticipated events. 16 CHICAGO RIVET & MACHINE CO. SUMMARY OF CONSOLIDATED RESULTS OF OPERATIONS FOR THE THREE AND NINE MONTHS ENDED SEPTEMBER 30
THIRD QUARTER FIRST NINE MONTHS ---------------------------- ---------------------------- 2001 2000 2001 2000 ----------- ----------- ----------- ----------- Net sales and lease revenue $ 9,398,572 $10,345,570 $31,242,652 $35,147,394 Income before income taxes 642,996 415,583 2,279,675 3,163,731 Net income 426,996 274,583 1,503,675 2,090,731 Net income per share .44 .28 1.55 2.01 Average shares outstanding 967,132 978,532 967,132 1,039,679
-------------------------------------------------------------------------------- (All figures subject to year end audit) 17