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UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
 WASHINGTON, DC 20549
 FORM 10-Q
  þ
    
    QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES
EXCHANGE ACT OF 1934
 For the quarterly period ended March 31, 2009
 OR
 o
    
    TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES
EXCHANGE ACT OF 1934
 For
the transition period from ______ to ______
 Commission file number 000-01227
 Chicago Rivet & Machine Co.
  Illinois
    
    36-0904920(State or Other Jurisdiction
    
    (I.R.S. Employerof Incorporation or Organization)
    
    Identification No.)901 Frontenac Road, Naperville, Illinois
    
    60563(Address of Principal Executive Offices)
    
    (Zip Code)
  þ o
 o o
  Large accelerated filer o
    
    Accelerated filer o
    
    Non-accelerated filer o
    
    Smaller reporting company þ(Do not check if a smaller reporting company)
 o þ




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PagePART
I. FINANCIAL INFORMATION (Unaudited)Condensed Consolidated Balance Sheets at
March 31, 2009 and December 31, 2008
    
    
    2-3Condensed Consolidated Statements of Operations for the
Three Months Ended March 31, 2009 and 2008
    
    
    4Condensed Consolidated Statements of Retained Earnings for the
Three Months Ended March 31, 2009 and 2008
    
    
    5Condensed Consolidated Statements of Cash Flows for the
Three Months Ended March 31, 2009 and 2008
    
    
    6Notes to the Condensed Consolidated Financial Statements
    
    
    7-8Managements Discussion and Analysis of Financial
Condition and Results of Operations
    
    
    9-10Controls and Procedures
    
    
    11PART II. OTHER INFORMATION
    
    
    12-18EX-31.1EX-31.2EX-32.1EX-32.2
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March 31,
    
    
    December 31,2009
    
    
    2008(Unaudited)AssetsCurrent Assets:Cash and cash equivalents
    
    $
    640,859
    
    
    $
    1,553,226Certificates of deposit
    
    
    6,992,000
    
    
    
    5,997,000Accounts receivable, net of allowance of $164,000
and $165,000, respectively
    
    
    3,044,673
    
    
    
    3,315,748Inventories
    
    
    4,479,920
    
    
    
    5,048,632Deferred income taxes
    
    
    508,191
    
    
    
    504,191Prepaid income taxes
    
    
    482,696
    
    
    
    355,788Other current assets
    
    
    298,350
    
    
    
    234,412Total current assets
    
    
    16,446,689
    
    
    
    17,008,997Property, Plant and Equipment:Land and improvements
    
    
    1,029,035
    
    
    
    1,029,035Buildings and improvements
    
    
    6,391,952
    
    
    
    6,391,952Production equipment, leased machines and other
    
    
    28,230,807
    
    
    
    28,163,59035,651,794
    
    
    
    35,584,577Less accumulated depreciation
    
    
    27,431,876
    
    
    
    27,184,604Net property, plant and equipment
    
    
    8,219,918
    
    
    
    8,399,973Total assets
    
    $
    24,666,607
    
    
    $
    25,408,970
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March 31,
    
    
    December 31,2009
    
    
    2008(Unaudited)Liabilities and Shareholders EquityCurrent Liabilities:Accounts payable
    
    $
    838,652
    
    
    $
    509,657Accrued wages and salaries
    
    
    672,522
    
    
    
    456,687Accrued profit sharing plan contribution
    
    
    25,000
    
    
    
    110,000Other accrued expenses
    
    
    191,314
    
    
    
    558,743Total current liabilities
    
    
    1,727,488
    
    
    
    1,635,087Deferred income taxes
    
    
    828,275
    
    
    
    865,275Total liabilities
    
    
    2,555,763
    
    
    
    2,500,362Commitments 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
    
    
    
    1,138,096Additional paid-in capital
    
    
    447,134
    
    
    
    447,134Retained earnings
    
    
    24,447,712
    
    
    
    25,245,476Treasury stock, 171,964 shares at cost
    
    
    (3,922,098
    )
    
    
    (3,922,098
    )Total shareholders equity
    
    
    22,110,844
    
    
    
    22,908,608Total liabilities and shareholders equity
    
    $
    24,666,607
    
    
    $
    25,408,970
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2009
    
    
    2008Net sales
    
    $
    4,759,290
    
    
    $
    8,414,326Cost of goods sold
    
    
    4,486,679
    
    
    
    7,102,362Gross profit
    
    
    272,611
    
    
    
    1,311,964Selling and administrative expenses
    
    
    1,280,076
    
    
    
    1,347,823Operating loss
    
    
    (1,007,465
    )
    
    
    (35,859
    )Other income and expenses:Interest income
    
    
    50,004
    
    
    
    75,922Other income
    
    
    3,600
    
    
    
    3,600Income (loss) before income taxes
    
    
    (953,861
    )
    
    
    43,663Provision for income taxes
    
    
    (330,000
    )
    
    
    16,000Net income (loss)
    
    $
    (623,861
    )
    
    $
    27,663Average common shares outstanding
    
    
    966,132
    
    
    
    966,132Per share data:Net income (loss) per share
    
    $
    (0.65
    )
    
    $
    0.03Cash dividends declared per share
    
    $
    0.18
    
    
    $
    0.33
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2009
    
    
    2008Retained earnings at beginning of period
    
    $
    25,245,476
    
    
    $
    26,911,493Net income (loss) for the three months ended
    
    
    (623,861
    )
    
    
    27,663Cash dividends declared in the period;
$.18 per share in 2009 and $.33 per share in 2008
    
    
    (173,903
    )
    
    
    (318,823
    )Retained earnings at end of period
    
    $
    24,447,712
    
    
    $
    26,620,333
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2009
    
    
    2008Cash flows from operating activities:Net income (loss)
    
    $
    (623,861
    )
    
    $
    27,663Adjustments to reconcile net income (loss) to net cash
provided by operating activities:Depreciation
    
    
    250,147
    
    
    
    266,613Deferred income taxes
    
    
    (41,000
    )
    
    
    (43,000
    )Changes in operating assets and liabilities:Accounts receivable, net
    
    
    271,075
    
    
    
    (33,401
    )Inventories
    
    
    568,712
    
    
    
    (509,096
    )Other current assets
    
    
    (190,846
    )
    
    
    204,803Accounts payable
    
    
    323,680
    
    
    
    343,290Accrued wages and salaries
    
    
    215,835
    
    
    
    103,025Accrued profit sharing plan contribution
    
    
    (85,000
    )
    
    
    (186,000
    )Other accrued expenses
    
    
    (367,429
    )
    
    
    (95,947
    )Net cash provided by operating activities
    
    
    321,313
    
    
    
    77,950Cash flows from investing activities:Capital expenditures
    
    
    (64,777
    )
    
    
    (114,740
    )Proceeds from certificates of deposit
    
    
    1,599,000
    
    
    
    4,600,000Purchases of certificates of deposit
    
    
    (2,594,000
    )
    
    
    (3,400,000
    )Net cash (used in) provided by investing activities
    
    
    (1,059,777
    )
    
    
    1,085,260Cash flows from financing activities:Cash dividends paid
    
    
    (173,903
    )
    
    
    (173,903
    )Net cash used in financing activities
    
    
    (173,903
    )
    
    
    (173,903
    )Net (decrease) increase in cash and cash equivalents
    
    
    (912,367
    )
    
    
    989,307Cash and cash equivalents at beginning of period
    
    
    1,553,226
    
    
    
    665,072Cash and cash equivalents at end of period
    
    $
    640,859
    
    
    $
    1,654,379Supplemental schedule of non-cash investing activities:Capital expenditures in accounts payable
    
    $
    5,315
    
    
    $
    16,639
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March 31, 2009
    
    
    December 31, 2008Raw material
    
    $
    1,348,050
    
    
    $
    1,600,001Work-in-process
    
    
    1,573,084
    
    
    
    1,628,664Finished goods
    
    
    2,117,786
    
    
    
    2,399,9675,038,920
    
    
    
    5,628,632Valuation reserves
    
    
    (559,000
    )
    
    
    (580,000
    )$
    4,479,920
    
    
    $
    5,048,632
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AssemblyFastener
    
    
    Equipment
    
    
    Other
    
    
    ConsolidatedThree Months Ended March 31, 2009:Net sales and lease revenue
    
    $
    3,629,430
    
    
    $
    1,129,860
    
    
    
    
    
    
    $
    4,759,290Depreciation
    
    
    214,303
    
    
    
    16,458
    
    
    
    19,386
    
    
    
    250,147Segment profit (loss)
    
    
    (617,979
    )
    
    
    145,179
    
    
    
    
    
    
    
    (472,800
    )Selling and administrative expenses
    
    
    
    
    
    
    
    
    
    
    (531,065
    )
    
    
    (531,065
    )Interest income
    
    
    
    
    
    
    
    
    
    
    50,004
    
    
    
    50,004Loss before income taxes
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    (953,861
    )Capital expenditures
    
    
    70,092
    
    
    
    
    
    
    
    
    
    
    
    70,092Segment assets:Accounts receivable, net
    
    
    2,810,747
    
    
    
    233,926
    
    
    
    
    
    
    
    3,044,673Inventories
    
    
    3,271,621
    
    
    
    1,208,299
    
    
    
    
    
    
    
    4,479,920Property, plant and equipment, net
    
    
    6,429,946
    
    
    
    1,045,964
    
    
    
    744,008
    
    
    
    8,219,918Other assets
    
    
    
    
    
    
    
    
    
    
    8,922,096
    
    
    
    8,922,09624,666,607Three Months Ended March 31, 2008:Net sales and lease revenue
    
    $
    7,326,127
    
    
    $
    1,088,199
    
    
    
    
    
    
    $
    8,414,326Depreciation
    
    
    226,650
    
    
    
    18,522
    
    
    
    21,441
    
    
    
    266,613Segment profit
    
    
    326,878
    
    
    
    202,105
    
    
    
    
    
    
    
    528,983Selling and administrative expenses
    
    
    
    
    
    
    
    
    
    
    (561,242
    )
    
    
    (561,242
    )Interest income
    
    
    
    
    
    
    
    
    
    
    75,922
    
    
    
    75,922Income before income taxes
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    43,663Capital expenditures
    
    
    131,379
    
    
    
    
    
    
    
    
    
    
    
    131,379Segment assets:Accounts receivable, net
    
    
    4,942,192
    
    
    
    420,622
    
    
    
    
    
    
    
    5,362,814Inventories
    
    
    4,017,096
    
    
    
    1,467,833
    
    
    
    
    
    
    
    5,484,929Property, plant and equipment, net
    
    
    7,037,168
    
    
    
    1,107,778
    
    
    
    826,757
    
    
    
    8,971,703Other assets
    
    
    
    
    
    
    
    
    
    
    8,090,334
    
    
    
    8,090,33427,909,780
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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, those disclosed under Risk Factors in
our Annual Report on Form 10-K and in the other filings we make with the United States Securities
and Exchange Commission. These factors, include among other things: conditions in the domestic
automotive industry, upon which we rely for sales revenue, the intense competition in our markets,
the concentration of our sales to two major customers, the price and availability of raw materials,
labor relations issues, losses related to product liability, warranty and recall claims, costs
relating to environmental laws and regulations, the loss of the
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services of our key employees and difficulties in achieving cost savings. 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.
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11




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31
    
    
    Rule 13a-14(a) or 15d-14(a) Certifications31.1
    
    
    Certification Pursuant to Rule 13a-14(a) or 15d-14(a), as Adopted
Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.31.2
    
    
    Certification Pursuant to Rule 13a-14(a) or 15d-14(a), as Adopted
Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.32
    
    
    Section 1350 Certifications32.1
    
    
    Certification Pursuant to 18 U.S.C. Section 1350, as Adopted
Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.32.2
    
    
    Certification Pursuant to 18 U.S.C. Section 1350, as Adopted
Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.
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CHICAGO RIVET & MACHINE CO.(Registrant)Date: May 11, 2009/s/ John A. Morrissey

John A. MorrisseyChairman of the Board of Directors   and Chief Executive Officer(Principal Executive Officer)Date: May 11, 2009/s/ Michael J. BourgMichael J. BourgPresident, Chief Operating   Officer and Treasurer(Principal Financial Officer)
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ExhibitNumber
    
    
    
    Page31
    
    Rule 13a-14(a) or 15d-14(a) Certifications31.1
    
    Certification Pursuant to Rule 13a-14(a) or 15d-14(a), as
Adopted Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002
    
    
    1531.2
    
    Certification Pursuant to Rule 13a-14(a) or 15d-14(a), as
Adopted Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002
    
    
    1632
    
    Section 1350 Certifications32.1
    
    Certification Pursuant to 18 U.S.C. Section 1350, as
Adopted Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002
    
    
    1732.2
    
    Certification Pursuant to 18 U.S.C. Section 1350, as
Adopted Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002
    
    
    18
 14