Chicago Rivet & Machine Co. reported a decline in financial performance for the fiscal year ending December 31, 2024, with net sales totaling $26.99 million, down from $31.51 million in 2023, representing a decrease of approximately 14.5%. The company experienced a gross profit of $1.06 million, a significant recovery from a gross loss of $599,590 in the previous year. However, the overall net loss increased to $5.62 million, compared to a net loss of $4.40 million in 2023, resulting in a net loss per share of $5.81, up from $4.56.
The company's operating expenses rose to $6.22 million from $5.24 million in 2023, contributing to an operating loss of $5.16 million, slightly improved from the previous year's loss of $5.84 million. The increase in operating expenses was primarily attributed to higher selling and administrative costs. Other income also saw a modest increase, totaling $120,666 compared to $108,234 in 2023, largely driven by interest income.
Strategically, Chicago Rivet undertook significant operational changes, including the closure of its manufacturing facility in Albia, Iowa, which affected 19 employees. This consolidation aimed to streamline operations and improve efficiency by transferring production to the Tyrone, Pennsylvania facility. The company recorded exit and disposal costs related to this closure, totaling approximately $171,000. Additionally, the company completed the sale of certain equipment from the Albia facility, realizing a gain of $38,530.
In terms of operational metrics, the company reported a decrease in accounts receivable, which totaled $3.09 million at year-end, down from $4.28 million in 2023. Inventory levels also decreased to $6.50 million from $7.33 million, reflecting a strategic effort to manage costs amid declining sales. The company maintained a consistent employee headcount of 966, indicating stability in its workforce despite the facility closure.
Looking ahead, Chicago Rivet's management expressed concerns regarding the company's ability to continue as a going concern, citing recurring operating losses and declining revenues. To address these challenges, the company has initiated several strategic actions, including the execution of a new credit agreement and exploring additional financing options. The outlook remains cautious, with management acknowledging the uncertainty surrounding the company's ability to increase sales and secure necessary liquidity.
About CHICAGO RIVET & MACHINE CO
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