10-Q

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, DC 20549

FORM 10-Q

(Mark One)

☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended March 31, 2017

OR

☐ 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.

(Exact Name of Registrant as Specified in Its Charter)

Illinois	36-0904920
(State or Other Jurisdiction of Incorporation or Organization)	(I.R.S. Employer Identification No.)

901 Frontenac Road, Naperville, Illinois	60563
(Address of Principal Executive Offices)	(Zip Code)

(630) 357-8500

Registrant’s Telephone Number, Including Area Code

Indicate by check mark whether the registrant: (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.    Yes  ☒    No  ☐

Indicate by check mark whether the registrant has submitted electronically and posted on its corporate website, if any, every interactive data file required to be submitted and posted pursuant to Rule 405 of Regulation S-T (section 232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files).    Yes  ☒    No  ☐

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company” and “emerging growth company” in Rule 12b-2 of the Exchange Act. (Check one):

Large accelerated filer	☐	Accelerated filer	☐
Non-accelerated filer	☐  (Do not check if smaller reporting company)	Smaller reporting company	☒
		Emerging growth company	☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.  ☐

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).    Yes  ☐    No  ☒

As of May 1, 2017, there were 966,132 shares of the registrant’s common stock outstanding.

CHICAGO RIVET & MACHINE CO.

INDEX

		Page
PART I.	FINANCIAL INFORMATION (Unaudited)
	Condensed Consolidated Balance Sheets at March 31, 2017 and December 31, 2016		2-3
	Condensed Consolidated Statements of Income for the Three Months Ended March 31, 2017 and 2016		4
	Condensed Consolidated Statements of Retained Earnings for the Three Months Ended March 31, 2017 and 2016		5
	Condensed Consolidated Statements of Cash Flows for the Three Months Ended March 31, 2017 and 2016		6
	Notes to the Condensed Consolidated Financial Statements		7-8
	Management’s Discussion and Analysis of Financial Condition and Results of Operations		9-10
	Controls and Procedures		11
PART II.	OTHER INFORMATION		12-18

1

Item 1. Financial Statements.

CHICAGO RIVET & MACHINE CO.

Condensed Consolidated Balance Sheets

March 31, 2017 and December 31, 2016

	March 31, 2017		December 31, 2016
	(Unaudited)
Assets
Current Assets:
Cash and cash equivalents	$	751,534	$	353,475
Certificates of deposit		6,814,000		8,059,000
Accounts receivable - Less allowances of $150,000		6,173,784		5,323,519
Inventories, net		5,287,442		4,537,693
Prepaid income taxes		—		56,112
Other current assets		390,746		423,952
Total current assets		19,417,506		18,753,751
Property, Plant and Equipment:
Land and improvements		1,424,689		1,424,689
Buildings and improvements		7,917,521		7,333,942
Production equipment and other		34,040,928		34,447,193
		43,383,138		43,205,824
Less accumulated depreciation		31,058,463		30,755,266
Net property, plant and equipment		12,324,675		12,450,558
Total assets	$	31,742,181	$	31,204,309

See Notes to the Condensed Consolidated Financial Statements

2

CHICAGO RIVET & MACHINE CO.

Condensed Consolidated Balance Sheets

March 31, 2017 and December 31, 2016

	March 31, 2017			December 31, 2016
	(Unaudited)
Liabilities and Shareholders’ Equity
Current Liabilities:
Accounts payable	$	1,352,096		$	703,467
Accrued wages and salaries		685,169			690,526
Other accrued expenses		477,063			604,174
Unearned revenue and customer deposits		345,295			286,133
Total current liabilities		2,859,623			2,284,300
Deferred income taxes		1,011,084			1,028,084
Total liabilities		3,870,707			3,312,384
Commitments and contingencies (Note 3)
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; 966,132 shares outstanding		1,138,096			1,138,096
Additional paid-in capital		447,134			447,134
Retained earnings		30,208,342			30,228,793
Treasury stock, 171,964 shares at cost		(3,922,098	)		(3,922,098	)
Total shareholders’ equity		27,871,474			27,891,925
Total liabilities and shareholders’ equity	$	31,742,181		$	31,204,309

See Notes to the Condensed Consolidated Financial Statements

3

CHICAGO RIVET & MACHINE CO.

Condensed Consolidated Statements of Income

For the Three Months Ended March 31, 2017 and 2016

(Unaudited)

	2017		2016
Net sales	$	9,483,327	$	9,596,395
Cost of goods sold		7,226,816		7,167,778
Gross profit		2,256,511		2,428,617
Selling and administrative expenses		1,506,272		1,458,719
Operating profit		750,239		969,898
Other income		20,683		13,159
Income before income taxes		770,922		983,057
Provision for income taxes		260,000		336,000
Net income	$	510,922	$	647,057
Per share data, basic and diluted:
Net income per share	$	0.53	$	0.67
Average common shares outstanding		966,132		966,132
Cash dividends declared per share	$	0.55	$	0.43

See Notes to the Condensed Consolidated Financial Statements

4

CHICAGO RIVET & MACHINE CO.

Condensed Consolidated Statements of Retained Earnings

For the Three Months Ended March 31, 2017 and 2016

(Unaudited)

	2017			2016
Retained earnings at beginning of period	$	30,228,793		$	28,828,284
Net income		510,922			647,057
Cash dividends declared in the period; $.55 per share in 2017 and $.43 in 2016		(531,373	)		(415,437	)
Retained earnings at end of period	$	30,208,342		$	29,059,904

See Notes to the Condensed Consolidated Financial Statements

5

CHICAGO RIVET & MACHINE CO.

Condensed Consolidated Statements of Cash Flows

For the Three Months Ended March 31, 2017 and 2016

(Unaudited)

	2017			2016
Cash flows from operating activities:
Net income	$	510,922		$	647,057
Adjustments to reconcile net income to net cash provided by (used in) operating activities:
Depreciation		303,197			299,355
Gain on disposal of equipment		(400	)		(1,022	)
Deferred income taxes		(17,000	)		(8,000	)
Changes in operating assets and liabilities:
Accounts receivable		(850,265	)		(673,585	)
Inventories		(749,749	)		(381,492	)
Other current assets		89,318			270,617
Accounts payable		646,777			649,419
Accrued wages and salaries		(5,357	)		22,441
Other accrued expenses		(127,111	)		(128,290	)
Unearned revenue and customer deposits		59,162			(19,000	)
Net cash provided by (used in) operating activities		(140,506	)		677,500
Cash flows from investing activities:
Capital expenditures		(175,462	)		(596,831	)
Proceeds from the sale of equipment		400			1,022
Proceeds from certificates of deposit		1,992,000			1,494,000
Purchases of certificates of deposit		(747,000	)		(996,000	)
Net cash provided by (used in) investing activities		1,069,938			(97,809	)
Cash flows from financing activities:
Cash dividends paid		(531,373	)		(415,437	)
Net cash used in financing activities		(531,373	)		(415,437	)
Net increase in cash and cash equivalents		398,059			164,254
Cash and cash equivalents at beginning of period		353,475			800,894
Cash and cash equivalents at end of period	$	751,534		$	965,148
Supplemental schedule of non-cash investing activities:
Capital expenditures in accounts payable	$	1,852		$	2,550

See Notes to the Condensed Consolidated Financial Statements

6

CHICAGO RIVET & MACHINE CO.

NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(Unaudited)

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 March 31, 2017 (unaudited) and December 31, 2016 (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, 2016.

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 month period ended March 31, 2017 are not necessarily indicative of the results to be expected for the year.

In May 2014, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update No. 2014-09, “Revenue from Contracts with Customers (Topic 606),” (“ASU 2014-09”) which is a comprehensive new revenue recognition model that requires a company to recognize revenue to depict the transfer of goods or services to a customer at an amount that reflects the consideration it expects to receive in exchange for those goods or services. In May 2016, the FASB issued ASU 2016-12, “Revenue from Contracts with Customers (Topic 606): Narrow-Scope Improvements and Practical Expedients” (“ASU 2016-12”), which updated ASU 2014-09. ASU 2016-12 clarifies certain core recognition principles including collectability, sales tax presentation, noncash consideration, contract modifications and completed contracts at transition and disclosures no longer required if the full retrospective transition method is adopted. ASU 2014-09 and ASU 2016-12 are effective for annual reporting periods after December 15, 2017 and interim periods within those reporting periods, and are to be applied using either the modified retrospective or full retrospective transition methods, with early adoption permitted. The Company has reviewed its revenue sources and contracts within the scope of the ASU and based on its evaluation to date, does not anticipate this standard will have a material impact on its consolidated financial statements. The Company does not plan to early adopt the ASU and has not yet determined the transition method.

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.

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.

4. The Company’s effective tax rates were approximately 33.7% and 34.2% for the first quarter of 2017 and 2016, respectively. The 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 2013 through 2016 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 2013 through 2016 federal income tax returns will expire on September 15, 2017 through 2020, respectively.

The Company’s state income tax returns for the 2013 through 2016 tax years remain subject to examination by various state authorities with the latest closing period on October 31, 2020. The Company is not currently under examination by any state authority for income tax purposes and no statutes for state income tax filings have been extended.

7

5. 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:

	March 31, 2017			December 31, 2016
Raw material	$	1,930,432		$	1,675,143
Work-in-process		2,007,716			1,684,321
Finished goods		1,881,294			1,740,229
Inventory, gross		5,819,442			5,099,693
Valuation reserves		(532,000	)		(562,000	)
Inventory, net	$	5,287,442		$	4,537,693

6. Segment Information—The Company operates in two business segments as determined by its products. The fastener segment includes rivets, cold-formed fasteners 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 March 31, 2017:
Net sales	$	8,736,188	$	747,139	$	—		$	9,483,327
Depreciation		269,837		24,390		8,970			303,197
Segment operating profit		1,191,547		245,620		—			1,437,167
Selling and administrative expenses		—		—		(680,928	)		(680,928	)
Interest income		—		—		14,683			14,683
Income before income taxes								$	770,922
Capital expenditures		174,789		2,525		—			177,314
Segment assets:
Accounts receivable, net		5,797,234		376,550		—			6,173,784
Inventories, net		4,075,856		1,211,586		—			5,287,442
Property, plant and equipment, net		10,187,799		1,542,837		594,039			12,324,675
Other assets		—		—		7,956,280			7,956,280
								$	31,742,181
Three Months Ended March 31, 2016:
Net sales	$	8,447,329	$	1,149,066	$	—		$	9,596,395
Depreciation		260,823		21,582		16,950			299,355
Segment operating profit		1,226,361		433,199		—			1,659,560
Selling and administrative expenses		—		—		(685,262	)		(685,262	)
Interest income		—		—		8,759			8,759
Income before income taxes								$	983,057
Capital expenditures		409,785		181,368		8,228			599,381
Segment assets:
Accounts receivable, net		5,701,331		410,586		—			6,111,917
Inventories, net		3,951,985		967,719		—			4,919,704
Property, plant and equipment, net		9,858,184		1,628,796		511,489			11,998,469
Other assets		—		—		7,418,596			7,418,596
								$	30,448,686

8

CHICAGO RIVET & MACHINE CO.

Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations.

Results of Operations

Revenues for the first quarter of 2017 were $9,483,327 compared to $9,596,395 in the first quarter of 2016, a decline of $113,068, or 1.2%. The decline was primarily due to lower machine sales which more than offset an improvement in fastener segment sales during the quarter. The shift to a less favorable product mix, along with the net decline in sales, contributed to lower gross margins compared to a year earlier. Net income was $510,922, or $0.53 per share, in the first quarter of this year compared to $647,057, or $0.67 per share, in the first quarter of 2016. In addition to a regular quarterly dividend of $0.20 per share, an extra dividend of $0.35 per share was paid in the first quarter based on the strong operating results achieved in 2016.

Fastener segment revenues were $8,736,188 in the first quarter of 2017, an increase of $288,859, or 3.4%, from $8,447,329 reported in the first quarter of 2016. The automotive sector is the primary market for our fastener segment products and the increase in sales was achieved despite a decline in U.S. auto and light-truck sales during the quarter. Production costs in the first quarter were comparable to last year with the notable exception of tooling expense which was $52,000 greater, primarily due to new parts being produced. That increase was the primary factor limiting the improvement in the fastener segment gross margin to $15,290.

Assembly equipment segment revenues were $747,139 in the first quarter of 2017 compared to $1,149,066 in the first quarter of 2016, a decline of $401,927, or 35%. The decline in revenue was primarily due to fewer machines being shipped in the current year quarter compared to the particularly strong results in the first quarter of last year. The decline in revenue during the quarter compared to the same period last year, resulted in a reduction in the assembly equipment segment margin of $187,396 compared to the first quarter of 2016.

Selling and administrative expenses during the first quarter of 2017 were $1,506,272, an increase of $47,553, or 3.3%, compared to $1,458,719 recorded in the first quarter of 2016. The installation of a new ERP system at one of our locations was primarily responsible for the increase during the quarter. Expenditures for the system upgrade were approximately $77,000 during the first quarter and the project is expected to be completed before the end of the year. Partially offsetting the higher computer related expenses was a reduction in profit sharing expense of $26,000 due to lower operating profit in the current year. Compared to net sales, selling and administrative expenses were 15.9% in the first quarter of 2017 compared to 15.2% in the first quarter of 2016.

Other Income

Other income in the first quarter of 2017 was $20,683 compared to $13,159 in the first quarter of 2016. The increase is primarily related to an increase in interest income on certificates of deposit due to higher interest rates and greater invested balances.

Income Tax Expense

The Company’s effective tax rates were approximately 33.7% and 34.2% for the first quarter of 2017 and 2016, respectively. The 2017 rate was lower than the U.S. federal statutory rate primarily due to the Domestic Production Activities Deduction allowed under Internal Revenue Code Section 199.

Liquidity and Capital Resources

Working capital amounted to $16.6 million as of March 31, 2017, an increase of approximately $0.1 million from the beginning of the current year. The components making the largest contribution to the increase in working capital in the first quarter were accounts receivable, which increased by $0.9 million due to greater sales activity during the quarter compared to the seasonally lower fourth quarter of 2016, and inventory, which increased $0.7 million to support greater production activity during the quarter compared to the fourth quarter of the prior year. Partially offsetting these increases was a reduction in cash and certificates of deposit of $0.8 million, due in part to the payment of dividends during the first quarter of $.5 million. The net result of these changes and other cash flow items was to leave cash, cash equivalents and certificates of deposit at $7.6 million as of March 31, 2017 compared to $8.4 million as of the beginning of the year. Management believes that current cash, cash equivalents and operating cash flow will provide adequate working capital for the next twelve months.

9

Results of Operations Summary

Sales in the first quarter were mixed as the increase in fastener segment revenues was offset by the reduction in the smaller assembly equipment segment. Sales of machines were particularly strong in 2016 which provided for difficult comparison to current year figures. Most costs during the first quarter were relatively comparable to a year earlier although we have experienced increases in certain raw materials recently that could adversely impact results going forward if sustained. Since material price increases can be difficult to mitigate, we will emphasize cost controls in other areas and strive for greater operating efficiencies in an effort to improve operating results. Due to our sound financial condition, we believe that we remain in a position to pursue future opportunities to profitably grow our revenues and improve net income.

Forward-Looking Statements

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, risks related to export sales, 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 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.

10

CHICAGO RIVET & MACHINE CO.

Item 4. Controls and Procedures.

(a) Disclosure Controls and Procedures. The Company’s management, with the participation of the Company’s Chief Executive Officer and President, Chief Operating Officer and Treasurer (the Company’s principal financial officer), has evaluated the effectiveness of the Company’s disclosure controls and procedures (as such term is defined in Rules 13a-15(e) and 15d-15(e) under the Securities Exchange Act of 1934, as amended (the “Exchange Act”)) as of the end of the period covered by this report. Based on such evaluation, the Company’s Chief Executive Officer and President, Chief Operating Officer and Treasurer have concluded that, as of the end of such period, the Company’s disclosure controls and procedures are effective in recording, processing, summarizing and reporting, on a timely basis, information required to be disclosed by the Company in the reports that it files or submits under the Exchange Act.

(b) Internal Control Over Financial Reporting. There have not been any changes in the Company’s internal control over financial reporting (as such term is defined in Rules 13a-15(f) and 15d-15(f) under the Exchange Act) during the fiscal quarter to which this report relates that have materially affected, or are reasonably likely to materially affect, the Company’s internal control over financial reporting.

11

PART II – OTHER INFORMATION

Item 6.	Exhibits
	31	Rule 13a-14(a) or 15d-14(a) Certifications
	31.1	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 Certifications
	32.1	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.
	101	Interactive Data File. Includes the following financial and related information from Chicago Rivet & Machine Co.’s Quarterly Report on Form 10-Q for the quarter ended March 31, 2017 formatted in Extensible Business Reporting Language (XBRL): (1) Condensed Consolidated Balance Sheets, (2) Condensed Consolidated Statements of Income, (3) Condensed Consolidated Statements of Retained Earnings, (4) Condensed Consolidated Statements of Cash Flows, and (5) Notes to Condensed Consolidated Financial Statements.

12

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.

	CHICAGO RIVET & MACHINE CO.
	(Registrant)
Date: May 5, 2017
	/s/ John A. Morrissey
	John A. Morrissey
	Chairman of the Board of Directors and Chief Executive Officer
	(Principal Executive Officer)
Date: May 5, 2017	/s/ Michael J. Bourg
	Michael J. Bourg
	President, Chief Operating
	Officer and Treasurer
	(Principal Financial Officer)

13

CHICAGO RIVET & MACHINE CO.

EXHIBITS

INDEX TO EXHIBITS

Exhibit Number		Page
31	Rule 13a-14(a) or 15d-14(a) Certifications
31.1	Certification Pursuant to Rule 13a-14(a) or 15d-14(a), as Adopted Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002		15
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		16
32	Section 1350 Certifications
32.1	Certification Pursuant to 18 U.S.C. Section 1350, as Adopted Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002		17
32.2	Certification Pursuant to 18 U.S.C. Section 1350, as Adopted Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002		18
101	Interactive Data File. Includes the following financial and related information from Chicago Rivet & Machine Co.’s Quarterly Report on Form 10-Q for the quarter ended March 31, 2017 formatted in Extensible Business Reporting Language (XBRL): (1) Condensed Consolidated Balance Sheets, (2) Condensed Consolidated Statements of Income, (3) Condensed Consolidated Statements of Retained Earnings, (4) Condensed Consolidated Statements of Cash Flows, and (5) Notes to Condensed Consolidated Financial Statements.

14

EX-31.1

EXHIBIT 31.1

I, John A. Morrissey, certify that:

1. I have reviewed this quarterly report on Form 10-Q of Chicago Rivet & Machine Co.;

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4. The registrant’s other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

b) Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

c) Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

d) Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

5. The registrant’s other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):

a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

Date:	May 5, 2017	/s/ John A. Morrissey
		John A. Morrissey
		Chief Executive Officer
		(Principal Executive Officer)

15

EX-31.2

EXHIBIT 31.2

I, Michael J. Bourg, certify that:

1. I have reviewed this quarterly report on Form 10-Q of Chicago Rivet & Machine Co.;

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4. The registrant’s other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

b) Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

c) Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

d) Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

5. The registrant’s other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):

a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

Date:	May 5, 2017	/s/ Michael J. Bourg
		Michael J. Bourg
		President, Chief Operating Officer
		and Treasurer (Principal Financial Officer)

16

EX-32.1

EXHIBIT 32.1

Certification Pursuant to 18 U.S.C. Section 1350,

as Adopted Pursuant to

Section 906 of the Sarbanes-Oxley Act of 2002

In connection with the Quarterly Report on Form 10-Q of Chicago Rivet & Machine Co. (the “Company”) for the quarterly period ended March 31, 2017 as filed with the Securities and Exchange Commission on the date hereof (the “Report”), I, John A. Morrissey, as Chief Executive Officer of the Company, hereby certify, pursuant to 18 U.S.C. § 1350, as adopted pursuant to § 906 of the Sarbanes-Oxley Act of 2002, that, to the best of my knowledge:

(1) The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and

(2) The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.

/s/ John A. Morrissey
Name:	John A. Morrissey
Title:	Chief Executive Officer
	(Principal Executive Officer)
Date:	May 5, 2017

17

EX-32.2

EXHIBIT 32.2

Certification Pursuant to 18 U.S.C. Section 1350,

as Adopted Pursuant to

Section 906 of the Sarbanes-Oxley Act of 2002

In connection with the Quarterly Report on Form 10-Q of Chicago Rivet & Machine Co. (the “Company”) for the quarterly period ended March 31, 2017 as filed with the Securities and Exchange Commission on the date hereof (the “Report”), I, Michael J. Bourg, as President, Chief Operating Officer and Treasurer of the Company, hereby certify, pursuant to 18 U.S.C. § 1350, as adopted pursuant to § 906 of the Sarbanes-Oxley Act of 2002, that, to the best of my knowledge:

(1) The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and

(2) The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.

/s/ Michael J. Bourg
Name:	Michael J. Bourg
Title:	President, Chief Operating Officer
	and Treasurer (Principal Financial Officer)
Date:	May 5, 2017

18

XML

Document and Entity Information - USD ($)	3 Months Ended
	Mar. 31, 2017	Jun. 30, 2016
Document and Entity Information:
Entity Registrant Name	CHICAGO RIVET & MACHINE CO.
Document Type	10-Q
Document Period End Date	Mar. 31, 2017
Trading Symbol	cvr
Amendment Flag	false
Entity Central Index Key	0000019871
Current Fiscal Year End Date	--12-31
Entity Common Stock, Shares Outstanding	966,132
Entity Public Float		$ 21,211,146
Entity Filer Category	Smaller Reporting Company
Entity Current Reporting Status	Yes
Entity Voluntary Filers	No
Entity Well-known Seasoned Issuer	No
Document Fiscal Year Focus	2017
Document Fiscal Period Focus	Q1

XML

Condensed Consolidated Balance Sheets (Unaudited) - USD ($)		Mar. 31, 2017	Dec. 31, 2016
Current Assets:
Cash and cash equivalents		$ 751,534	$ 353,475
Certificates of deposit		6,814,000	8,059,000
Accounts receivable, net	[1]	6,173,784	5,323,519
Inventories, net		5,287,442	4,537,693
Prepaid income taxes			56,112
Other current assets		390,746	423,952
Total current assets		19,417,506	18,753,751
Property, Plant and Equipment:
Land		923,587	923,587
Land improvements		501,102	501,102
Buildings and improvements		7,917,521	7,333,942
Production equipment and other		34,040,928	34,447,193
Property, Plant and Equipment Gross		43,383,138	43,205,824
Less accumulated depreciation		31,058,463	30,755,266
Net property, plant and equipment		12,324,675	12,450,558
Total assets		31,742,181	31,204,309
Current Liabilities:
Accounts payable		1,352,096	703,467
Accrued wages and salaries		685,169	690,526
Other accrued expenses		477,063	604,174
Unearned revenue and customer deposits		345,295	286,133
Total current liabilities		2,859,623	2,284,300
Deferred income taxes		1,011,084	1,028,084
Total liabilities		3,870,707	3,312,384
Shareholders' Equity:
Preferred stock	[2]	0	0
Common stock	[3]	1,138,096	1,138,096
Additional paid-in capital		447,134	447,134
Retained earnings		30,208,342	30,228,793
Less: Treasury stock	[4]	3,922,098	3,922,098
Total shareholders' equity		27,871,474	27,891,925
Total liabilities and shareholders' equity		$ 31,742,181	$ 31,204,309

[1] Net of allowance of $150,000.

[2] No par value, 500,000 shares authorized, none outstanding.

[3] $1.00 par value, 4,000,000 shares authorized, 1,138,096 shares issued, 966,132 shares outstanding.

[4] At cost, 171,964 shares.

XML

Condensed Consolidated Statements of Income (Unaudited) - USD ($)	3 Months Ended
	Mar. 31, 2017	Mar. 31, 2016
Condensed Consolidated Statements of Income
Net sales	$ 9,483,327	$ 9,596,395
Cost of goods sold	7,226,816	7,167,778
Gross profit	2,256,511	2,428,617
Selling and administrative expenses	1,506,272	1,458,719
Operating profit	750,239	969,898
Other income	20,683	13,159
Income before provision for income taxes	770,922	983,057
Provision for income taxes	260,000	336,000
Net income	$ 510,922	$ 647,057
Per share data, basic and diluted:
Net income per share	$ 0.53	$ 0.67
Average common shares outstanding	966,132	966,132
Cash dividends declared per share	$ 0.55	$ 0.43

XML

Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($)	3 Months Ended
	Mar. 31, 2017	Mar. 31, 2016
Cash flows from operating activities:
Net income	$ 510,922	$ 647,057
Adjustments to reconcile net income to net cash provided by (used in) operating activities:
Depreciation	303,197	299,355
Gain from disposal of equipment	(400)	(1,022)
Deferred income taxes	(17,000)	(8,000)
Changes in operating assets and liabilities:
Accounts receivable	(850,265)	(673,585)
Inventories	(749,749)	(381,492)
Other current assets	89,318	270,617
Accounts payable	646,777	649,419
Accrued wages and salaries	(5,357)	22,441
Other accrued expenses	(127,111)	(128,290)
Unearned revenue and customer deposits	59,162	(19,000)
Net cash provided by (used in) operating activities	(140,506)	677,500
Cash flows from investing activities:
Capital expenditures	(175,462)	(596,831)
Proceeds from the sale of equipment	400	1,022
Proceeds from certificates of deposit	1,992,000	1,494,000
Purchases of certificates of deposit	(747,000)	(996,000)
Net cash provided by (used in) investing activities	1,069,938	(97,809)
Cash flows from financing activities:
Cash dividends paid	(531,373)	(415,437)
Net cash used in financing activities	(531,373)	(415,437)
Net increase (decrease) in cash and cash equivalents	398,059	164,254
Cash and cash equivalents at beginning of period	353,475	800,894
Cash and cash equivalents at end of period	751,534	965,148
Supplemental schedule of non-cash investing activities:
Capital expenditures in accounts payable	$ 1,852	$ 2,550

XML

Condensed Consolidated Statements of Retained Earnings (Unaudited) - USD ($)	3 Months Ended
	Mar. 31, 2017	Mar. 31, 2016
Condensed Consolidated Statements of Retained Earnings
Retained earnings at beginning of period	$ 30,228,793	$ 28,828,284
Net income	510,922	647,057
Cash dividends paid, $.55 per share in 2017 and $.43 in 2016	(531,373)	(415,437)
Retained earnings at end of period	$ 30,208,342	$ 29,059,904

XML

Accounting Policies

3 Months Ended

Mar. 31, 2017

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 March 31, 2017 (unaudited) and December 31, 2016 (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, 2016.

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 month period ended March 31, 2017 are not necessarily indicative of the results to be expected for the year.

In May 2014, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update No. 2014-09, “Revenue from Contracts with Customers (Topic 606),” (“ASU 2014-09”) which is a comprehensive new revenue recognition model that requires a company to recognize revenue to depict the transfer of goods or services to a customer at an amount that reflects the consideration it expects to receive in exchange for those goods or services.  In May 2016, the FASB issued ASU 2016-12, “Revenue from Contracts with Customers (Topic 606): Narrow-Scope Improvements and Practical Expedients” (“ASU 2016-12”), which updated ASU 2014-09.  ASU 2016-12 clarifies certain core recognition principles including collectability, sales tax presentation, noncash consideration, contract modifications and completed contracts at transition and disclosures no longer required if the full retrospective transition method is adopted.  ASU 2014-09 and ASU 2016-12 are effective for annual reporting periods after December 15, 2017 and interim periods within those reporting periods, and are to be applied using either the modified retrospective or full retrospective transition methods, with early adoption permitted.  The Company has reviewed its revenue sources and contracts within the scope of the ASU and based on its evaluation to date, does not anticipate this standard will have a material impact on its consolidated financial statements.  The Company does not plan to early adopt the ASU and has not yet determined the transition method.

XML

Risks and Uncertainties

3 Months Ended

Mar. 31, 2017

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.

XML

Commitments and Contingencies

3 Months Ended

Mar. 31, 2017

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.

XML

Income Taxes

3 Months Ended

Mar. 31, 2017

Notes

Income Taxes

4.  The Company’s effective tax rates were approximately 33.7% and 34.2% for the first quarter of 2017 and 2016, respectively.  The 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 2013 through 2016 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 2013 through 2016 federal income tax returns will expire on September 15, 2017 through 2020, respectively.

The Company’s state income tax returns for the 2013 through 2016 tax years remain subject to examination by various state authorities with the latest closing period on October 31, 2020.  The Company is not currently under examination by any state authority for income tax purposes and no statutes for state income tax filings have been extended.

XML

Inventory

3 Months Ended

Mar. 31, 2017

Notes

Inventory

5.  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: 

	March 31, 2017	December 31, 2016
Raw material	$              1,930,432	$                1,675,143
Work-In-Process	2,007,716	1,684,321
Finished Goods	1,881,294	1,740,229
Inventory, Gross	5,819,442	5,099,693
Valuation reserves	(532,000)	(562,000)
Inventory, Net	$              5,287,442	$               4,537,693

XML

Segment Reporting

3 Months Ended

Mar. 31, 2017

Notes

Segment Reporting

6.  Segment Information—The Company operates in two business segments as determined by its products.  The fastener segment includes rivets, cold-formed fasteners 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 March 31, 2017:
Net sales	$          8,736,188	$            747,139	0	$           9,483,327
Depreciation	269,837	24,390	8,970	303,197
Segment operating profit	1,191,547	245,620	0	1,437,167
Selling and administrative expenses	0	0	(680,928)	(680,928)
Interest income	0	0	14,683	14,683
Income before income taxes				$              770,922
Capital expenditures	174,789	2,525	0	177,314
Segment assets:
Accounts receivable, net	5,797,234	376,550	0	6,173,784
Inventories, net	4,075,856	1,211,586	0	5,287,442
Property, plant and equipment, net	10,187,799	1,542,837	594,039	12,324,675
Other assets	0	0	7,956,280	7,956,280
				$         31,742,181
Three Months Ended March 31, 2016:
Net sales	$        8,447,329	$          1,149,066	0	$           9,596,395
Depreciation	260,823	21,582	16,950	299,355
Segment operating profit	1,226,361	433,199	0	1,659,560
Selling and administrative expenses	0	0	(685,262)	(685,262)
Interest income	0	0	8,759	8,759
Income before income taxes				$              983,057
Capital expenditures	409,785	181,368	8,228	599,381
Segment assets:
Accounts receivable, net	5,701,331	410,586	0	6,111,917
Inventories, net	3,951,985	967,719	0	4,919,704
Property, plant and equipment, net	9,858,184	1,628,796	511,489	11,998,469
Other assets	0	0	7,418,596	7,418,596
				$         30,448,686

XML

Accounting Policies (Policies)

3 Months Ended

Mar. 31, 2017

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 March 31, 2017 (unaudited) and December 31, 2016 (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, 2016.

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 month period ended March 31, 2017 are not necessarily indicative of the results to be expected for the year.

In May 2014, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update No. 2014-09, “Revenue from Contracts with Customers (Topic 606),” (“ASU 2014-09”) which is a comprehensive new revenue recognition model that requires a company to recognize revenue to depict the transfer of goods or services to a customer at an amount that reflects the consideration it expects to receive in exchange for those goods or services.  In May 2016, the FASB issued ASU 2016-12, “Revenue from Contracts with Customers (Topic 606): Narrow-Scope Improvements and Practical Expedients” (“ASU 2016-12”), which updated ASU 2014-09.  ASU 2016-12 clarifies certain core recognition principles including collectability, sales tax presentation, noncash consideration, contract modifications and completed contracts at transition and disclosures no longer required if the full retrospective transition method is adopted.  ASU 2014-09 and ASU 2016-12 are effective for annual reporting periods after December 15, 2017 and interim periods within those reporting periods, and are to be applied using either the modified retrospective or full retrospective transition methods, with early adoption permitted.  The Company has reviewed its revenue sources and contracts within the scope of the ASU and based on its evaluation to date, does not anticipate this standard will have a material impact on its consolidated financial statements.  The Company does not plan to early adopt the ASU and has not yet determined the transition method.

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.

Income Taxes

4.  The Company’s effective tax rates were approximately 33.7% and 34.2% for the first quarter of 2017 and 2016, respectively.  The 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 2013 through 2016 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 2013 through 2016 federal income tax returns will expire on September 15, 2017 through 2020, respectively.

The Company’s state income tax returns for the 2013 through 2016 tax years remain subject to examination by various state authorities with the latest closing period on October 31, 2020.  The Company is not currently under examination by any state authority for income tax purposes and no statutes for state income tax filings have been extended.

Inventory

5.  Inventories are stated at the lower of cost or net realizable value, cost being determined by the first-in, first-out method.

Segment Reporting

6.  Segment Information—The Company operates in two business segments as determined by its products.  The fastener segment includes rivets, cold-formed fasteners and screw machine products.  The assembly equipment segment includes automatic rivet setting machines and parts and tools for such machines.

XML

Schedule of Inventory, Current (Tables)

3 Months Ended

Mar. 31, 2017

Tables/Schedules

Schedule of Inventory, Current

	March 31, 2017	December 31, 2016
Raw material	$              1,930,432	$                1,675,143
Work-In-Process	2,007,716	1,684,321
Finished Goods	1,881,294	1,740,229
Inventory, Gross	5,819,442	5,099,693
Valuation reserves	(532,000)	(562,000)
Inventory, Net	$              5,287,442	$               4,537,693

XML

Schedule of Segment Reporting Information, by Segment (Tables)

3 Months Ended

Mar. 31, 2017

Tables/Schedules

Schedule of Segment Reporting Information, by Segment

	Fastener	Assembly Equipment	Other	Consolidated
Three Months Ended March 31, 2017:
Net sales	$          8,736,188	$            747,139	0	$           9,483,327
Depreciation	269,837	24,390	8,970	303,197
Segment operating profit	1,191,547	245,620	0	1,437,167
Selling and administrative expenses	0	0	(680,928)	(680,928)
Interest income	0	0	14,683	14,683
Income before income taxes				$              770,922
Capital expenditures	174,789	2,525	0	177,314
Segment assets:
Accounts receivable, net	5,797,234	376,550	0	6,173,784
Inventories, net	4,075,856	1,211,586	0	5,287,442
Property, plant and equipment, net	10,187,799	1,542,837	594,039	12,324,675
Other assets	0	0	7,956,280	7,956,280
				$         31,742,181
Three Months Ended March 31, 2016:
Net sales	$        8,447,329	$          1,149,066	0	$           9,596,395
Depreciation	260,823	21,582	16,950	299,355
Segment operating profit	1,226,361	433,199	0	1,659,560
Selling and administrative expenses	0	0	(685,262)	(685,262)
Interest income	0	0	8,759	8,759
Income before income taxes				$              983,057
Capital expenditures	409,785	181,368	8,228	599,381
Segment assets:
Accounts receivable, net	5,701,331	410,586	0	6,111,917
Inventories, net	3,951,985	967,719	0	4,919,704
Property, plant and equipment, net	9,858,184	1,628,796	511,489	11,998,469
Other assets	0	0	7,418,596	7,418,596
				$         30,448,686

XML

Schedule of Inventory, Current (Details) - USD ($)	Mar. 31, 2017	Dec. 31, 2016	Mar. 31, 2016
Details
Inventory, Raw Materials, Gross	$ 1,930,432	$ 1,675,143
Inventory, Work in Process, Gross	2,007,716	1,684,321
Inventory, Finished Goods, Gross	1,881,294	1,740,229
Inventory, Gross	5,819,442	5,099,693
Inventory Valuation Reserves	(532,000)	(562,000)
Inventories, net	$ 5,287,442	$ 4,537,693	$ 4,919,704

XML

Schedule of Segment Reporting Information, by Segment (Details) - USD ($)	3 Months Ended
	Mar. 31, 2017		Mar. 31, 2016	Dec. 31, 2016
Net sales	$ 9,483,327		$ 9,596,395
Depreciation	303,197		299,355
Segment operating profit	1,437,167		1,659,560
Selling and adminstrative expenses	(680,928)		(685,262)
Interest income	14,683		8,759
Capital expenditures	177,314		599,381
Accounts receivable, net	6,173,784	[1]	6,111,917	$ 5,323,519	[1]
Inventories, net	5,287,442		4,919,704	4,537,693
Property, plant and equipment, net	12,324,675		11,998,469	$ 12,450,558
Other assets	7,956,280		7,418,596
Fastener
Net sales	8,736,188		8,447,329
Depreciation	269,837		260,823
Segment operating profit	1,191,547		1,226,361
Selling and adminstrative expenses	0		0
Interest income	0		0
Capital expenditures	174,789		409,785
Accounts receivable, net	5,797,234		5,701,331
Inventories, net	4,075,856		3,951,985
Property, plant and equipment, net	10,187,799		9,858,184
Other assets	0		0
Assembly Equipment
Net sales	747,139		1,149,066
Depreciation	24,390		21,582
Segment operating profit	245,620		433,199
Selling and adminstrative expenses	0		0
Interest income	0		0
Capital expenditures	2,525		181,368
Accounts receivable, net	376,550		410,586
Inventories, net	1,211,586		967,719
Property, plant and equipment, net	1,542,837		1,628,796
Other assets	0		0
Unallocated Corporate
Net sales	0		0
Depreciation	8,970		16,950
Segment operating profit	0		0
Selling and adminstrative expenses	(680,928)		(685,262)
Interest income	14,683		8,759
Capital expenditures	0		8,228
Accounts receivable, net	0		0
Inventories, net	0		0
Property, plant and equipment, net	594,039		511,489
Other assets	$ 7,956,280		$ 7,418,596

[1] Net of allowance of $150,000.