Riviera Twice Late In Filing

December 16, 2004
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GRAND RAPIDS — Riviera Tool Co. announced today that it is delinquent in filing its SEC Form 10-K for fiscal 2004.

Previously, Riviera had requested and received from the Securities and Exchange Commission an extension on the filing of its Form 10-K for the fourth quarter and year ended Aug. 31. The SEC provides companies that face extenuating circumstances a 15-calendar-day extension for annual reports.

Riviera filed for the extension Nov. 30 and its 10-K filing date was pushed to Dec. 15. But Riviera announced Thursday it was delinquent in filing the form because it “was awaiting pertinent independent information required in analyzing any potential asset impairment charges pertaining to the Aug. 31, 2004, financial statements.”

Riviera indicated last week that it anticipated filing its Form 10-K by or before Dec. 25.

The company had announced Nov. 30 that it anticipated a net loss in the range of $7.2 million to $7.9 million, or $1.91 to $2.11 per diluted share, on net sales of $24.6 million for fiscal 2004, compared with net income of $900,000, or 27 cents per diluted share, on net sales of $34.1 million in fiscal 2003.

At the time, Riviera had expected to post a fourth quarter net loss of between $8 million and $8.7 million, or $2.12 to $2.31 per share, compared with net income of $446,000, or 14 cents a share, for the year-ago quarter.

During the fourth quarter Riviera completed two major tooling programs for the Mercedes-Benz M Class sports utility vehicle and a new “crossover” vehicle and said it had incurred “significant unanticipated difficulties” in completing both, thus the negative effect on revenue and related earnings.

Riviera reported that customer changes in the programs’ engineering and material specifications racked up $4 million in unforeseen outsourcing costs and $3.5 million in additional labor costs to maintain delivery of the parts on time.

“Our fourth-quarter results were the result of our efforts to exceed the high expectations of our customer on this very important contract,” President and CEO Ken Rieth said at the time of the initial filing delay in November. “These costs, combined with the expected softness in the tooling market, contributed to the net loss and put significant pressure on our margins.”

Rieth said that though the bottom line results were disappointing, Riviera was pleased to have completed the important job for Mercedes and that the work likely will lead to additional opportunities with Mercedes.

A company that fails to meet its Form 10-K filing deadline loses the availability of short-term securities registration for at least one year from the date of late filing.

Form 10-K filing delinquencies can ultimately result in the delisting of a company’s common stock. Riviera Tool is listed on the American Stock Exchange.    

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