Chicago Rivet & Machine (CVR) Q3 2024 earnings summary

Executive summary

• Net sales for Q3 2024 were $6.97M, down 12.3% year-over-year, with a net loss of $1.45M versus a $964K loss in Q3 2023.

• Nine-month net sales were $22.88M, down 7.5% year-over-year, with a net loss of $2.0M, improved from a $2.86M loss in the prior year.

• Fastener segment sales declined sharply, especially in automotive, while assembly equipment sales and margins improved.

• Gross margins improved in both segments due to price increases, cost reductions, and efficiency gains.

Financial highlights

• Q3 2024 net sales: $6.97M (down 12.3% YoY); nine-month net sales: $22.88M (down 7.5% YoY).

• Q3 2024 net loss: $1.45M ($1.50/share); nine-month net loss: $2.0M ($2.07/share).

• Q3 gross profit: $694.99K; nine-month gross profit: $2.85M.

• Cash, cash equivalents, and short-term investments at $2.16M as of September 30, 2024.

• Working capital at $12.84M, down from $13.98M at year-end.

Outlook and guidance

• Automotive fastener volumes are expected to remain weak for the rest of 2024, but cost structure and efficiency improvements are expected to benefit results when volumes recover.

• Non-automotive fastener and assembly equipment segments are seen as growth opportunities.