-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: webmaster@www.sec.gov Originator-Key-Asymmetric: MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB MIC-Info: RSA-MD5,RSA, HKRaMImp4TjElDab+ZU7x8b1eUuJ1e3RSbHecdq8D2GxBCJsMGH7HdAK3LQcxqiC r147NmVCH753F9hXT3M8LQ== 0000084112-99-000001.txt : 19990106 0000084112-99-000001.hdr.sgml : 19990106 ACCESSION NUMBER: 0000084112-99-000001 CONFORMED SUBMISSION TYPE: 10QSB PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 19981031 FILED AS OF DATE: 19990105 FILER: COMPANY DATA: COMPANY CONFORMED NAME: RISK GEORGE INDUSTRIES INC CENTRAL INDEX KEY: 0000084112 STANDARD INDUSTRIAL CLASSIFICATION: COMMUNICATIONS EQUIPMENT, NEC [3669] IRS NUMBER: 840524756 STATE OF INCORPORATION: CO FISCAL YEAR END: 0430 FILING VALUES: FORM TYPE: 10QSB SEC ACT: SEC FILE NUMBER: 000-05378 FILM NUMBER: 99500934 BUSINESS ADDRESS: STREET 1: 802 SOUTH ELM STREET 2: GRI PLAZA CITY: KIMBALL STATE: NE ZIP: 69145 BUSINESS PHONE: 3082354645 MAIL ADDRESS: STREET 1: 802 S ELM ST CITY: KIMBALL STATE: NE ZIP: 69145 10QSB 1 UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-QSB (Mark One) [x] Quarterly Report under Section 13 or 15(d) of the Securities Exchange Act of 1934 For the quarter ended October 31, 1998 [ ] Transition report under Section 13 or 15(d) of the Exchange Act. For the transition period from _____to _____ Commission file number 0-5378 GEORGE RISK INDUSTRIES, INC. (Exact name of small business issuer as specified in its charter) Colorado 84-0524756 (State or other jurisdiction (IRS employers of incorporation or organization) identification No.) 802 South Elm, Kimball, NE 69145 (Address of principal executive offices) (308)-235-4645 (Issuer's telephone number) n/a (Former name, address and fiscal year, if changed since last report) Check whether the issuer (1) filed all reports required to be filed by Section 13 or 15(d) of the Exchange Act during the past 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 [x] No [ ] APPLICABLE ONLY TO ISSUERS INVOLVED IN BANKRUPTCY PROCEEDINGS DURING THE PRECEDING FIVE YEARS Check whether the registrant filed all documents and reports required to be filed by Section 12, 13 or 15(d) of the Exchange Act after the distribution of securities under a plan confirmed by a court. Yes [ ] No [ ] APPLICABLE ONLY TO CORPORATE ISSUERS State the number of shares outstanding of each of the issuer's classes of common equity, as of the latest practicable date: 6,053,483 PART I. FINANCIAL INFORMATION GEORGE RISK INDUSTRIES, INC. Balance Sheet October 31, 1998 [CAPTION] [S] [C] ASSETS Current Assets Cash $ 1,040,000 Marketable securities 4,736,000 Accounts receivable: Trade, net of $50,000 doubtful account allowance 2,070,000 Notes Receivable 8,000 Inventories 2,130,000 Prepaid expenses 63,000 Deferred Income Taxes 31,000 ___________ Total current assets 10,078,000 Property And Equipment, Net, At Cost 815,000 Other Assets 157,000 ___________ TOTAL ASSETS $11,050,000 [CAPTION] LIABILITIES AND STOCKHOLDERS EQUITY [S] [C] Current Liabilities Accounts payable, trade $ 215,000 Notes payable, current portion 52,000 Accrued expenses 755,000 ___________ Total current liabilities 1,022,000 Long term Liabilities Notes payable, FKI, Inc. 131,000 Deferred Income Taxes 33,000 ___________ Total long term liabilities 164,000 Stockholders Equity Convertible preferred stock 257,000 Common stock, Class A 850,000 Additional paid-in capital 1,674,000 Retained earnings 7,733,000 Less cost of treasury stock (650,000) ___________ Total stockholders equity 9,864,000 ___________ TOTAL LIABILITIES AND STOCKHOLDERS EQUITY $11,050,000 GEORGE RISK INDUSTRIES INC. STATEMENTS OF INCOME (unaudited)
for three months for nine months ended ended October 31 October 31 1998 1997 1998 1997 _______________________ _______________________ Net sales $3,441,000 $3,007,000 $6,346,000 $5,559,000 Less cost of goods sold 1,763,000 1,644,000 3,292,000 3,024,000 _______________________ ________________________ Gross profit $1,678,000 $1,363,000 $3,054,000 $2,535,000 Operating expenses G&A 154,000 147,000 301,000 302,000 Sales 667,000 630,000 1,111,000 1,043,000 Engineering 33,000 21,000 60,000 43,000 _______________________ ________________________ $ 854,000 $ 798,000 $1,472,000 $1,388,000 Income from operations 824,000 565,000 1,582,000 1,147,000 Other income (expenses) Interest income 64,000 74,000 127,000 128,000 Interest expense (5,000) (7,000) (11,000) (14,000) Other income 0 46,000 0 51,000 _______________________ _________________________ $ 59,000 $ 113,000 $ 232,000 $ 100,000 Income before prov- ision for income tax $ 883,000 $ 678,000 $1,698,000 $1,312,000 Provision for income tax Current expense 381,000 291,000 667,000 571,000 _______________________ _________________________ Net Income $ 502,000 $ 387,000 $1,031,000 $ 741,000 Net income per common share $ .08 $ .06 $ .17 $ .12 Weighted average number of common shares out- standing 6,053,483 6,087,343 6,053,483 6,087,343 See Accompanying Notes To Financial Statements
GEORGE RISK INDUSTRIES, INC Statements of Cash Flows For The Nine Months Ended January 31, [CAPTION] 1998 1997 ___________________________ [S] [C] [C] Cash Flow From Operating Activities: Net income $1,031,000 $ 741,000 Adjustments to reconcile net income to net cash provided by operating activities: Depreciation 54,000 59,000 Changes in assets and liabilities: (Increase) decrease in: Accounts receivable (300,000) (178,000) Note Receivable 8,000 0 Inventories (474,000) 336,000 Prepaid expenses (18,000) 13,000 Other assets (109,000) (96,000) Increase (decrease) in: Accounts payable 19,000 (38,000) Accrued expenses 17,000 (17,000) Notes payable (25,000) (23,000) Income tax payable 367,000 104,000 Net cash provided by (used in) _________ __________ operating activities 570,000 901,000 Cash Flows From Investing Activities: (Purchase) sale of property and equipment (6,000) (38,000) (Purchase) sale of marketable securities (391,000) (861,000) Net cash provided by (used in) __________ __________ investing activities (397,000) (899,000) Cash Flows From Financing Activities: (Purchase) of treasury stock (35,000) 0 Net cash provided by (used in) __________ __________ financing activities (35,000) 0 Net increase (decrease) in cash $ 138,000 $ 2,000 Cash at beginning of period $ 903,000 $ 653,000 Cash at end of period $1,040,000 $ 655,000 GEORGE RISK INDUSTRIES, INC Part I. FINANCIAL INFORMATION Item 1. Management Discussion and Analysis of Financial Condition and Results of Operations. MANAGEMENT DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS The following discussion should be read in conjunction with the attached condensed consolidated financial statements, and with the Company's audited financial statements and discussion for the fiscal year ended April 30, 1998. Net cash increased $138,000 during the six months ended October 31, 1998 as compared to an increase of $2000 during the corresponding six month period last year. The Company invested excess cash in marketable securities with those purchases total- ling $391,000 for the current six month period. Last year the purchase of marketable securities for the six months totalled $861,000 resulting in a 55% decrease for the period ended October 31, 1998 as compared to the same period ended October 31, 1997. Other assets increased $109,000 for the current six month period. This increase is comprised of deposits on capital equip- ment being purchased with CDBG Funds. Once delivered and operating the total costs estimated at $150,000 will be capitalized. Other assets also include current costs for new molds that are being built by our own tool and die department but not yet complete. At the time of completion these costs will also be capitalized. Working capital at October 31, 1998 was $9,056,000 as compared to $7,380,000 October 31, 1997. The current ratio was 10:1 for the current period. Cash per share $.95 and equity per share was 1.63. Net sales decreased $787,000 or 14% for the six month period as compared to the same period last year, and for the three months ended October 31, 1998 sales increased $434,000 over the same three months last year. The increase in net sales during the first 6 months of Fiscal year 1999 is expected to continue thru the remainder of the current fiscal year. Operating expenses were 25% of net sales for the six months ended October 31, 1998, showing no change from the corresponding period last year. Interest income decreased $13,000 during the quarter ended October 31, 1998 and increased $1,000 for the six month period as compared to the quarter ended October 31, 1997 and the six months ended October 31, 1997. Income tax expense increased proportionately with the increase in net income. Net income increased 30% for the current quarter and 39% for the six months as compared to the corres- ponding period last year. The Company is completing its conversion to a fully Y2K compliant computer system and expects to have the project completed by mid January. The total cost, including both hardware and software upgrading is expected to total approximately $50,000. Management has also implemented a plan for insuring that GRI vendors are also addressing this issue. At this time we are confident there will be no problems with our major suppliers. GEORGE RISK INDUSTRIES, INC. Part II. OTHER INFORMATION Item 1. Legal Proceedings n/a Item 2. Changes in Securities n/a Item 3. Defaults upon Senior Securities n/a Item 4. Submission of Matters to a Vote of Securities n/a Item 5. Other Information n/a Item 6. Exhibits and Reports on Form 8-K A. Exhibits Exhibit 27. Financial Data Schedule B. Reports on Form 8-K No 8-K reports were filed during the quarter ended January 31, 1998 SIGNATURES In accordance with the requirements of the Exchange Act, the registrant caused this report to be signed on its behalf by the undersigned, thereunto duly authorized. George Risk Industries, Inc. (Registrant) Date 12-15-98 Ken R. Risk Ken R. Risk, Director Date 12-15-98 Eileen M. Risk Eileen M. Risk, Director EX-27 2 ARTICLE 5 FIN. DATA SCHEDULE FOR 2ND QTR 10-QSB
5 1,000 6-MOS APR-30-1999 MAY-01-1998 OCT-31-1998 1040 4736 2120 50 2130 10078 1744 929 11050 1022 0 850 0 257 0 11050 6445 6445 3292 3292 0 0 11 1698 667 1031 0 0 0 1031 .17 .17
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