Chicago Rivet & Machine (CVR) 10-Q 6 Nov 18 2018 Q3 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - USD ($)	9 Months Ended
	Sep. 30, 2018	Nov. 02, 2018	Jun. 30, 2018
Details
Registrant Name	Chicago Rivet & Machine Co.
Registrant CIK	19,871
SEC Form	10-Q
Period End date	Sep. 30, 2018
Fiscal Year End	--12-31
Trading Symbol	CVR
Tax Identification Number (TIN)	360,904,920
Number of common stock shares outstanding		966,132
Public Float			$ 25,335,536
Entity Filer Category	Non-accelerated Filer
Current with reporting	Yes
Entity Small Business	true
Entity Emerging Growth Company	false
Amendment Flag	false
Document Fiscal Year Focus	2,018
Document Fiscal Period Focus	Q3
Entity Incorporation, State Country Name	Illinois
Entity Address, Address Line One	901 Frontenac Road
Entity Address, City or Town	Naperville
Entity Address, State or Province	Illinois
Entity Address, Postal Zip Code	60,563
City Area Code	630
Local Phone Number	357-8500

Condensed Consolidated Balance

Condensed Consolidated Balance Sheets (Unaudited) - USD ($)	Sep. 30, 2018	Dec. 31, 2017
Current Assets:
Cash and cash equivalents	$ 1,084,363	$ 1,152,569
Certificates of deposit	6,814,000	7,810,000
Accounts receivable - Less allowances of $140,000	6,502,374	5,326,650
Inventories, net	5,254,333	4,528,100
Prepaid income taxes	148,686	84,112
Other current assets	399,682	357,918
Total current assets	20,203,438	19,259,349
Property, Plant and Equipment
Land and improvements	1,616,041	1,535,434
Buildings and improvements	8,039,831	8,039,831
Production equipment and other	35,510,017	34,607,507
Property, Plant and Equipment, Gross	45,165,889	44,182,772
Less accumulated depreciation	31,939,664	31,625,819
Net property, plant and equipment	13,226,225	12,556,953
Total assets	33,429,663	31,816,302
Current Liabilities:
Accounts payable	1,204,908	737,040
Accrued wages and salaries	895,390	674,316
Other accrued expenses	440,352	495,132
Unearned revenue and customer deposits	373,848	312,775
Total current liabilities	2,914,498	2,219,263
Deferred income taxes	855,084	737,084
Total liabilities	3,769,582	2,956,347
Shareholders' Equity:
Preferred stock, no par value, 500,000 shares authorized: none outstanding	0	0
Common stock, $1.00 par value, 4,000,000 shares authorized, 1,138,096 shares issued; 966,132 shares outstanding	1,138,096	1,138,096
Additional paid-in capital	447,134	447,134
Retained earnings	31,996,949	31,196,823
Treasury stock, 171,964 shares at cost	3,922,098	3,922,098
Total shareholders' equity	29,660,081	28,859,955
Total liabilities and shareholders' equity	$ 33,429,663	$ 31,816,302

Condensed Consolidated Balanc_2

Condensed Consolidated Balance Sheets (Unaudited) - Parenthetical - USD ($)	Sep. 30, 2018	Dec. 31, 2017
Details
Allowance for Doubtful Accounts Receivable, Current	$ 140,000	$ 140,000
Preferred Stock, Par or Stated Value Per Share	$ 0	$ 0
Preferred Stock, Shares Authorized	500,000	500,000
Preferred Stock, Shares Outstanding	0	0
Common Stock, Par or Stated Value Per Share	$ 1	$ 1
Common Stock, Shares Authorized	4,000,000	4,000,000
Common Stock, Shares, Issued	1,138,096	1,138,096
Common Stock, Shares, Outstanding	966,132	966,132
Treasury Stock, Shares	171,964	171,964

Condensed Consolidated Statemen

Condensed Consolidated Statements of Income (Unaudited) - USD ($)	3 Months Ended		9 Months Ended
	Sep. 30, 2018	Sep. 30, 2017	Sep. 30, 2018	Sep. 30, 2017
Condensed Consolidated Statements of Income (Unaudited)
Net sales	$ 8,856,049	$ 8,386,756	$ 28,660,474	$ 27,305,591
Cost of goods sold	7,221,815	6,632,070	22,394,801	21,224,986
Gross profit	1,634,234	1,754,686	6,265,673	6,080,605
Selling and administrative expenses	1,308,884	1,278,646	4,185,571	4,205,493
Operating profit	325,350	476,040	2,080,102	1,875,112
Other income	38,399	24,795	109,527	68,000
Income before income taxes	363,749	500,835	2,189,629	1,943,112
Provision for income taxes	76,000	165,000	491,000	634,000
Net income	$ 287,749	$ 335,835	$ 1,698,629	$ 1,309,112
Per share data, basic and diluted:
Net income per share	$ 0.30	$ 0.35	$ 1.76	$ 1.36
Average common shares outstanding	966,132	966,132	966,132	966,132
Cash dividends declared per share	$ 0.21	$ 0.20	$ 0.93	$ 0.95

Condensed Consolidated Statem_2

Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($)	9 Months Ended
	Sep. 30, 2018	Sep. 30, 2017
Cash flows from operating activities:
Net income	$ 1,698,629	$ 1,309,112
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation	973,182	922,347
Gain on disposal of equipment	(26,135)	(1,700)
Deferred income taxes	118,000	(70,000)
Changes in operating assets and liabilities:
Accounts receivable	(1,175,724)	(547,573)
Inventories	(726,233)	(550,424)
Other current assets and prepaid income taxes	(106,338)	98,977
Accounts payable	460,603	460,171
Accrued wages and salaries	221,074	199,981
Other accrued expenses	(54,780)	(131,262)
Unearned revenue and customer deposits	61,073	(45,282)
Net cash provided by operating activities	1,443,351	1,644,347
Cash flows from investing activities:
Capital expenditures	1,635,189	1,069,559
Proceeds from the sale of equipment	26,135	1,700
Proceeds from certificates of deposit	3,735,000	5,320,000
Purchases of certificates of deposit	2,739,000	4,573,000
Net cash used in investing activities	(613,054)	(320,859)
Cash flows from financing activities:
Cash dividends paid	898,503	917,825
Net cash used in financing activities	(898,503)	(917,825)
Net increase (decrease) in cash and cash equivalents	(68,206)	405,663
Cash and cash equivalents at beginning of period	1,152,569	353,475
Cash and cash equivalents at end of period	1,084,363	759,138
Supplemental schedule of non-cash investing activities:
Capital expenditures in accounts payable	$ 7,265	$ 1,487

Condensed Consolidated Statem_3

Condensed Consolidated Statements of Retained Earnings (Unaudited) - USD ($)	9 Months Ended
	Sep. 30, 2018	Sep. 30, 2017
Condensed Consolidated Statements of Retained Earnings (Unaudited)
Retained earnings at beginning of period	$ 31,196,823	$ 30,228,793
Net income	1,698,629	1,309,112
Cash dividends declared in the period, $.93 per share in 2018 and $.95 in 2017	(898,503)	(917,825)
Retained earnings at end of period	$ 31,996,949	$ 30,620,080

Condensed Consolidated Statem_4

Condensed Consolidated Statements of Retained Earnings (Unaudited) - Parenthetical - $ / shares	3 Months Ended		9 Months Ended
	Sep. 30, 2018	Sep. 30, 2017	Sep. 30, 2018	Sep. 30, 2017
Details
Cash dividends declared per share	$ 0.21	$ 0.20	$ 0.93	$ 0.95

Accounting Policies

Accounting Policies	9 Months Ended
	Sep. 30, 2018
Notes
Accounting Policies	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, 2018 (unaudited) and December 31, 2017 (audited) and the results of operations and changes in cash flows for the indicated periods. Certain information and note disclosures normally included in financial statements prepared in accordance with accounting principles generally accepted in the United States of America have been omitted from these unaudited financial statements in accordance with applicable rules. Please refer to the financial statements and notes thereto included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2017. 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. The results of operations for the three and nine-month period ending September 30, 2018 are not necessarily indicative of the results to be expected for the year. In February 2016, the Financial Accounting Standards Board issued Accounting Standards Update (“ASU”) No. 2016-02, “Leases (Topic 842).” The ASU will increase transparency and comparability among entities by recognizing lease assets and lease liabilities on the balance sheet and disclosing key information about leasing arrangements. The ASU will require lessees to recognize in the balance sheet a liability to make lease payments (the lease liability) and a right-of-use asset representing its right to use the underlying asset for the lease term. The ASU is effective for annual reporting periods beginning after December 15, 2018 and interim periods within those annual periods. The impact of adopting this ASU is not expected to be significant based on current lease agreements.

Risks and Uncertainties

Risks and Uncertainties	9 Months Ended
	Sep. 30, 2018
Notes
Risks and Uncertainties	2. The Company extends credit on the basis of terms that are customary within our markets to various companies doing business primarily in the automotive industry. The Company has a concentration of credit risk primarily within the automotive industry and in the Midwestern United States.

Commitments and Contingencies

Commitments and Contingencies	9 Months Ended
	Sep. 30, 2018
Notes
Commitments and Contingencies	3. The Company is, from time to time, involved in litigation, including environmental claims and contract disputes, 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.

Revenue

Revenue	9 Months Ended
	Sep. 30, 2018
Notes
Revenue	4. Revenue—On January 1, 2018, the Company adopted ASC Topic 606, “Revenue from Contracts with Customers” using the modified retrospective method. The adoption did not result in the recognition of a cumulative adjustment to beginning retained earnings, nor did it have a material impact on the condensed consolidated financial statements. For the Company, the most significant impact of the new standard is the addition of required disclosures within the notes to the financial statements. The Company operates in the fastener industry and is in the business of manufacturing and selling rivets, cold-formed fasteners and parts, screw machine products, automatic rivet setting machines and parts and tools for such machines. Revenue is recognized when control of the promised goods or services is transferred to our customers, generally upon shipment of goods or completion of services, in an amount that reflects the consideration we expect to receive in exchange for those goods or services. Sales taxes we may collect concurrent with revenue producing activities are excluded from revenue. Revenue is recognized net of certain sales adjustments to arrive at net sales as reported on the statement of income. These adjustments primarily relate to customer returns and allowances. The Company records a liability and reduction in sales for estimated product returns based upon historical experience. If we determine that our obligation under warranty claims is probable and subject to reasonable determination, an estimate of that liability is recorded as an offset against revenue at that time. As of September 30, 2018 and December 31, 2017 reserves for warranty claims were not material. Cash received by the Company prior to shipment is recorded as unearned revenue. Shipping and handling fees billed to customers are recognized in net sales, and related costs as cost of sales, when incurred. Sales commissions are expensed when incurred because the amortization period is less than one year. These costs are recorded within selling and administrative expenses in the statement of income. The following table presents revenue by segment, further disaggregated by end-market: Fastener Assembly Equipment Consolidated Three Months Ended September 30, 2018: Automotive 5,291,033 100,751 5,391,784 Non-automotive 2,645,765 818,500 3,464,265 Total 7,936,798 919,251 8,856,049 Three Months Ended September 30, 2017: Automotive 5,181,974 49,040 5,231,014 Non-automotive 2,304,219 851,523 3,155,742 Total 7,486,193 900,563 8,386,756 Nine Months Ended September 30, 2018: Automotive 17,225,475 189,656 17,415,131 Non-automotive 8,670,697 2,574,646 11,245,343 Total 25,896,172 2,764,302 28,660,474 Nine Months Ended September 30, 2017: Automotive 17,116,399 130,631 17,247,030 Non-automotive 7,203,326 2,855,235 10,058,561 Total 24,319,725 2,985,866 27,305,591

Income Taxes

Income Taxes	9 Months Ended
	Sep. 30, 2018
Notes
Income Taxes	5. The Company’s effective tax rates were 21.0% and 32.9% for the third quarter of 2018 and 2017, respectively, and 22.4% and 32.6% for the nine months ended September 30, 2018 and 2017, respectively. The lower rate in 2018 is due to the enactment of the Tax Cuts and Jobs Act in December 2017 that reduced the maximum federal corporate tax rate from 35% to 21% beginning in 2018. The effective rate was lower than the U.S. federal statutory rate in 2017 primarily due to the Domestic Production Activities Deduction allowed under Internal Revenue Code Section 199. The Company’s federal income tax returns for the 2015, 2016 and 2017 tax years are subject to examination by the Internal Revenue Service (“IRS”). While it may be possible that a reduction could occur with respect to the Company’s unrecognized tax benefits as an outcome of an IRS examination, management does not anticipate any adjustments that would result in a material change to the results of operations or financial condition of the Company. No statutes have been extended on any of the Company’s federal income tax filings. The statute of limitations on the Company’s 2015, 2016 and 2017 federal income tax returns will expire on September 15, 2019, 2020 and 2021, respectively. The Company’s state income tax returns for the 2015 through 2017 tax years remain subject to examination by various state authorities with the latest closing period on October 31, 2021. The Company is currently not under examination by any state authority for income tax purposes and no statutes for state income tax filings have been extended.

Inventories

Inventories	9 Months Ended
	Sep. 30, 2018
Notes
Inventories	6. Inventories are stated at the lower of cost or net realizable value, cost being determined by the first-in, first-out method. A summary of inventories is as follows: September 30, 2018 December 31, 2017 Raw material $ 2,231,154 $ 1,812,603 Work-in-process 1,828,478 1,604,867 Finished goods 1,784,701 1,674,630 Inventory, gross 5,844,333 5,092,100 Valuation reserves (590,000) (564,000) Inventories, net $ 5,254,333 $ 4,528,100

Segment Reporting

Segment Reporting	9 Months Ended
	Sep. 30, 2018
Notes
Segment Reporting	7. Segment Information—The Company operates in two business segments as determined by its products. The fastener segment includes rivets, cold-formed fasteners and parts and screw machine products. The assembly equipment segment includes automatic rivet setting machines and parts and tools for such machines. Information by segment is as follows: Fastener Assembly Equipment Other Consolidated Three Months Ended September 30, 2018: Net sales $ 7,936,798 $ 919,251 0 $ 8,856,049 Depreciation 281,418 28,358 9,869 319,645 Segment operating profit 599,188 297,009 0 896,197 Selling and administrative expenses 0 0 (563,347) (563,347) Interest income 0 0 30,899 30,899 Income before income taxes $ 363,749 Capital expenditures 813,649 5,489 187,598 1,006,736 Segment assets: Accounts receivable, net 5,961,946 540,428 0 6,502,374 Inventories, net 4,226,263 1,028,070 0 5,254,333 Property, plant and equipment, net 10,696,801 1,596,585 932,839 13,226,225 Other assets 0 0 8,446,731 8,446,731 $ 33,429,663 Three Months Ended September 30, 2017: Net sales $ 7,486,193 $ 900,563 0 $ 8,386,756 Depreciation 275,820 24,390 8,970 309,180 Segment operating profit 768,247 317,602 0 1,085,849 Selling and administrative expenses 0 0 (603,809) (603,809) Interest income 0 0 18,795 18,795 Income before income taxes $ 500,835 Capital expenditures 263,563 8,325 0 271,888 Segment assets: Accounts receivable, net 5,576,022 295,070 0 5,871,092 Inventories, net 4,134,219 953,898 0 5,088,117 Property, plant and equipment, net 10,409,913 1,613,245 576,099 12,599,257 Other assets 0 0 8,452,225 8,452,225 $ 32,010,691 Nine Months Ended September 30, 2018: Net sales $ 25,896,172 $ 2,764,302 0 $ 28,660,474 Depreciation 865,677 82,954 24,551 973,182 Segment operating profit 3,006,367 930,570 0 3,936,937 Selling and administrative expenses 0 0 (1,831,926) (1,831,926) Interest income 0 0 84,618 84,618 Income before income taxes $ 2,189,629 Capital expenditures 1,279,568 36,984 325,902 1,642,454 Nine Months Ended September 30, 2017: Net sales $ 24,319,725 $ 2,985,866 0 $ 27,305,591 Depreciation 822,267 73,170 26,910 922,347 Segment operating profit 2,716,020 1,089,089 0 3,805,109 Selling and administrative expenses 0 0 (1,911,509) (1,911,509) Interest income 0 0 49,512 49,512 Income before income taxes $ 1,943,112 Capital expenditures 949,333 121,713 0 1,071,046

Accounting Policies (Policies)

Accounting Policies (Policies)	9 Months Ended
	Sep. 30, 2018
Policies
Accounting Policies	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, 2018 (unaudited) and December 31, 2017 (audited) and the results of operations and changes in cash flows for the indicated periods. Certain information and note disclosures normally included in financial statements prepared in accordance with accounting principles generally accepted in the United States of America have been omitted from these unaudited financial statements in accordance with applicable rules. Please refer to the financial statements and notes thereto included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2017. 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. The results of operations for the three and nine-month period ending September 30, 2018 are not necessarily indicative of the results to be expected for the year. In February 2016, the Financial Accounting Standards Board issued Accounting Standards Update (“ASU”) No. 2016-02, “Leases (Topic 842).” The ASU will increase transparency and comparability among entities by recognizing lease assets and lease liabilities on the balance sheet and disclosing key information about leasing arrangements. The ASU will require lessees to recognize in the balance sheet a liability to make lease payments (the lease liability) and a right-of-use asset representing its right to use the underlying asset for the lease term. The ASU is effective for annual reporting periods beginning after December 15, 2018 and interim periods within those annual periods. The impact of adopting this ASU is not expected to be significant based on current lease agreements.
Risks and Uncertainties	2. The Company extends credit on the basis of terms that are customary within our markets to various companies doing business primarily in the automotive industry. The Company has a concentration of credit risk primarily within the automotive industry and in the Midwestern United States.
Commitments and Contingencies	3. The Company is, from time to time, involved in litigation, including environmental claims and contract disputes, 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.
Revenue	4. Revenue—On January 1, 2018, the Company adopted ASC Topic 606, “Revenue from Contracts with Customers” using the modified retrospective method. The adoption did not result in the recognition of a cumulative adjustment to beginning retained earnings, nor did it have a material impact on the condensed consolidated financial statements. For the Company, the most significant impact of the new standard is the addition of required disclosures within the notes to the financial statements. The Company operates in the fastener industry and is in the business of manufacturing and selling rivets, cold-formed fasteners and parts, screw machine products, automatic rivet setting machines and parts and tools for such machines. Revenue is recognized when control of the promised goods or services is transferred to our customers, generally upon shipment of goods or completion of services, in an amount that reflects the consideration we expect to receive in exchange for those goods or services. Sales taxes we may collect concurrent with revenue producing activities are excluded from revenue. Revenue is recognized net of certain sales adjustments to arrive at net sales as reported on the statement of income. These adjustments primarily relate to customer returns and allowances. The Company records a liability and reduction in sales for estimated product returns based upon historical experience. If we determine that our obligation under warranty claims is probable and subject to reasonable determination, an estimate of that liability is recorded as an offset against revenue at that time. As of September 30, 2018 and December 31, 2017 reserves for warranty claims were not material. Cash received by the Company prior to shipment is recorded as unearned revenue. Shipping and handling fees billed to customers are recognized in net sales, and related costs as cost of sales, when incurred. Sales commissions are expensed when incurred because the amortization period is less than one year. These costs are recorded within selling and administrative expenses in the statement of income.
Income Taxes	5. The Company’s effective tax rates were 21.0% and 32.9% for the third quarter of 2018 and 2017, respectively, and 22.4% and 32.6% for the nine months ended September 30, 2018 and 2017, respectively. The lower rate in 2018 is due to the enactment of the Tax Cuts and Jobs Act in December 2017 that reduced the maximum federal corporate tax rate from 35% to 21% beginning in 2018. The effective rate was lower than the U.S. federal statutory rate in 2017 primarily due to the Domestic Production Activities Deduction allowed under Internal Revenue Code Section 199. The Company’s federal income tax returns for the 2015, 2016 and 2017 tax years are subject to examination by the Internal Revenue Service (“IRS”). While it may be possible that a reduction could occur with respect to the Company’s unrecognized tax benefits as an outcome of an IRS examination, management does not anticipate any adjustments that would result in a material change to the results of operations or financial condition of the Company. No statutes have been extended on any of the Company’s federal income tax filings. The statute of limitations on the Company’s 2015, 2016 and 2017 federal income tax returns will expire on September 15, 2019, 2020 and 2021, respectively. The Company’s state income tax returns for the 2015 through 2017 tax years remain subject to examination by various state authorities with the latest closing period on October 31, 2021. The Company is currently not under examination by any state authority for income tax purposes and no statutes for state income tax filings have been extended.
Inventories	6. Inventories are stated at the lower of cost or net realizable value, cost being determined by the first-in, first-out method.
Segment Reporting	7. Segment Information—The Company operates in two business segments as determined by its products. The fastener segment includes rivets, cold-formed fasteners and parts and screw machine products. The assembly equipment segment includes automatic rivet setting machines and parts and tools for such machines.

Revenue_ Revenue (Tables)

Revenue: Revenue (Tables)	9 Months Ended
	Sep. 30, 2018
Tables/Schedules
Revenue	Fastener Assembly Equipment Consolidated Three Months Ended September 30, 2018: Automotive 5,291,033 100,751 5,391,784 Non-automotive 2,645,765 818,500 3,464,265 Total 7,936,798 919,251 8,856,049 Three Months Ended September 30, 2017: Automotive 5,181,974 49,040 5,231,014 Non-automotive 2,304,219 851,523 3,155,742 Total 7,486,193 900,563 8,386,756 Nine Months Ended September 30, 2018: Automotive 17,225,475 189,656 17,415,131 Non-automotive 8,670,697 2,574,646 11,245,343 Total 25,896,172 2,764,302 28,660,474 Nine Months Ended September 30, 2017: Automotive 17,116,399 130,631 17,247,030 Non-automotive 7,203,326 2,855,235 10,058,561 Total 24,319,725 2,985,866 27,305,591

Inventories_ Inventories (Table

Inventories: Inventories (Tables)	9 Months Ended
	Sep. 30, 2018
Tables/Schedules
Inventories	September 30, 2018 December 31, 2017 Raw material $ 2,231,154 $ 1,812,603 Work-in-process 1,828,478 1,604,867 Finished goods 1,784,701 1,674,630 Inventory, gross 5,844,333 5,092,100 Valuation reserves (590,000) (564,000) Inventories, net $ 5,254,333 $ 4,528,100

Segment Reporting_ Schedule of

Segment Reporting: Schedule of Segment Reporting Information, by Segment (Tables)	9 Months Ended
	Sep. 30, 2018
Tables/Schedules
Schedule of Segment Reporting Information, by Segment	Fastener Assembly Equipment Other Consolidated Three Months Ended September 30, 2018: Net sales $ 7,936,798 $ 919,251 0 $ 8,856,049 Depreciation 281,418 28,358 9,869 319,645 Segment operating profit 599,188 297,009 0 896,197 Selling and administrative expenses 0 0 (563,347) (563,347) Interest income 0 0 30,899 30,899 Income before income taxes $ 363,749 Capital expenditures 813,649 5,489 187,598 1,006,736 Segment assets: Accounts receivable, net 5,961,946 540,428 0 6,502,374 Inventories, net 4,226,263 1,028,070 0 5,254,333 Property, plant and equipment, net 10,696,801 1,596,585 932,839 13,226,225 Other assets 0 0 8,446,731 8,446,731 $ 33,429,663 Three Months Ended September 30, 2017: Net sales $ 7,486,193 $ 900,563 0 $ 8,386,756 Depreciation 275,820 24,390 8,970 309,180 Segment operating profit 768,247 317,602 0 1,085,849 Selling and administrative expenses 0 0 (603,809) (603,809) Interest income 0 0 18,795 18,795 Income before income taxes $ 500,835 Capital expenditures 263,563 8,325 0 271,888 Segment assets: Accounts receivable, net 5,576,022 295,070 0 5,871,092 Inventories, net 4,134,219 953,898 0 5,088,117 Property, plant and equipment, net 10,409,913 1,613,245 576,099 12,599,257 Other assets 0 0 8,452,225 8,452,225 $ 32,010,691 Nine Months Ended September 30, 2018: Net sales $ 25,896,172 $ 2,764,302 0 $ 28,660,474 Depreciation 865,677 82,954 24,551 973,182 Segment operating profit 3,006,367 930,570 0 3,936,937 Selling and administrative expenses 0 0 (1,831,926) (1,831,926) Interest income 0 0 84,618 84,618 Income before income taxes $ 2,189,629 Capital expenditures 1,279,568 36,984 325,902 1,642,454 Nine Months Ended September 30, 2017: Net sales $ 24,319,725 $ 2,985,866 0 $ 27,305,591 Depreciation 822,267 73,170 26,910 922,347 Segment operating profit 2,716,020 1,089,089 0 3,805,109 Selling and administrative expenses 0 0 (1,911,509) (1,911,509) Interest income 0 0 49,512 49,512 Income before income taxes $ 1,943,112 Capital expenditures 949,333 121,713 0 1,071,046

Revenue_ Revenue (Details)

Revenue: Revenue (Details) - USD ($)	3 Months Ended		9 Months Ended
	Sep. 30, 2018	Sep. 30, 2017	Sep. 30, 2018	Sep. 30, 2017
Fastener | Automotive
Revenue	$ 5,291,033	$ 5,181,974	$ 17,225,475	$ 17,116,399
Fastener | NonAutomotive
Revenue	2,645,765	2,304,219	8,670,697	7,203,326
Fastener
Revenue	7,936,798	7,486,193	25,896,172	24,319,725
Assembly Equipment | Automotive
Revenue	100,751	49,040	189,656	130,631
Assembly Equipment | NonAutomotive
Revenue	818,500	851,523	2,574,646	2,855,235
Assembly Equipment
Revenue	919,251	900,563	2,764,302	2,985,866
Automotive
Revenue	5,391,784	5,231,014	17,415,131	17,247,030
NonAutomotive
Revenue	3,464,265	3,155,742	11,245,343	10,058,561
Revenue	$ 8,856,049	$ 8,386,756	$ 28,660,474	$ 27,305,591

Inventories_ Inventories (Detai

Inventories: Inventories (Details) - USD ($)	Sep. 30, 2018	Dec. 31, 2017	Sep. 30, 2017
Details
Raw material	$ 2,231,154	$ 1,812,603
Work-in-process	1,828,478	1,604,867
Finished goods	1,784,701	1,674,630
Inventory, gross	5,844,333	5,092,100
Valuation reserves	(590,000)	(564,000)
Inventories, net	$ 5,254,333	$ 4,528,100	$ 5,088,117

Segment Reporting_ Schedule o_2

Segment Reporting: Schedule of Segment Reporting Information, by Segment (Details) - USD ($)	3 Months Ended		9 Months Ended
	Sep. 30, 2018	Sep. 30, 2017	Sep. 30, 2018	Sep. 30, 2017	Dec. 31, 2017
Net sales	$ 8,856,049	$ 8,386,756	$ 28,660,474	$ 27,305,591
Depreciation	319,645	309,180	973,182	922,347
Segment operating profit	896,197	1,085,849	3,936,937	3,805,109
Selling and administrative expenses	(563,347)	(603,809)	(1,831,926)	(1,911,509)
Interest income	30,899	18,795	84,618	49,512
Capital expenditures	1,006,736	271,888	1,642,454	1,071,046
Accounts receivable, net	6,502,374	5,871,092	6,502,374	5,871,092	$ 5,326,650
Inventories, net	5,254,333	5,088,117	5,254,333	5,088,117	4,528,100
Property, plant and equipment, net	13,226,225	12,599,257	13,226,225	12,599,257	$ 12,556,953
Other assets	8,446,731	8,452,225	8,446,731	8,452,225
Fastener
Net sales	7,936,798	7,486,193	25,896,172	24,319,725
Depreciation	281,418	275,820	865,677	822,267
Segment operating profit	599,188	768,247	3,006,367	2,716,020
Selling and administrative expenses	0	0	0	0
Interest income	0	0	0	0
Capital expenditures	813,649	263,563	1,279,568	949,333
Accounts receivable, net	5,961,946	5,576,022	5,961,946	5,576,022
Inventories, net	4,226,263	4,134,219	4,226,263	4,134,219
Property, plant and equipment, net	10,696,801	10,409,913	10,696,801	10,409,913
Other assets	0	0	0	0
Assembly Equipment
Net sales	919,251	900,563	2,764,302	2,985,866
Depreciation	28,358	24,390	82,954	73,170
Segment operating profit	297,009	317,602	930,570	1,089,089
Selling and administrative expenses	0	0	0	0
Interest income	0	0	0	0
Capital expenditures	5,489	8,325	36,984	121,713
Accounts receivable, net	540,428	295,070	540,428	295,070
Inventories, net	1,028,070	953,898	1,028,070	953,898
Property, plant and equipment, net	1,596,585	1,613,245	1,596,585	1,613,245
Other assets	0	0	0	0
Unallocated Corporate
Net sales	0	0	0	0
Depreciation	9,869	8,970	24,551	26,910
Segment operating profit	0	0	0	0
Selling and administrative expenses	(563,347)	(603,809)	(1,831,926)	(1,911,509)
Interest income	30,899	18,795	84,618	49,512
Capital expenditures	187,598	0	325,902	0
Accounts receivable, net	0	0	0	0
Inventories, net	0	0	0	0
Property, plant and equipment, net	932,839	576,099	932,839	576,099
Other assets	$ 8,446,731	$ 8,452,225	$ 8,446,731	$ 8,452,225