-----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, TT4P8YPad5/5nayu92WuGT053/lhCKmHTNgDMJzrIKLg3iYuc5qeGaNfTqb5vSY5 gaIL/xmEEvGCMbBMcYU5SA== 0000084112-99-000004.txt : 19990403 0000084112-99-000004.hdr.sgml : 19990403 ACCESSION NUMBER: 0000084112-99-000004 CONFORMED SUBMISSION TYPE: 10QSB/A PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 19990131 FILED AS OF DATE: 19990331 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/A SEC ACT: SEC FILE NUMBER: 000-05378 FILM NUMBER: 99584420 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/A 1 UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-QSB/A (Mark One) [x] Quarterly Report under Section 13 or 15(d) of the Securities Exchange Act of 1934. For the quarter ended January 31, 1999 [ ] Transition report under Section 13 or 15(d) of the Exchange Act. For the transition period from ___________ to ___________ Commision 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 [ ] No [x] 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: 6,054,158. PART I. FINANCIAL INFORMATION GEORGE RISK INDUSTRIES, INC. Balance Sheet January 31, 1999, October 31, 1998, and January 31, 1998 [CAPTION] [S] [C] [C] [C] ASSETS Current Assets Cash $ 1,711,000 $ 1,040,000 $ 831,000 Marketable Securities 5,304,000 4,736,000 4,366,000 Accounts Receivable: Trade, net of $50,000 doubtful account allowance 2,007,000 2,070,000 1,411,000 Notes Receivable 1,000 8,000 65,000 Inventories (Note 1) 2,153,000 2,130,000 1,580,000 Prepaid Expenses 59,000 63,000 42,000 ------------ ------------ ----------- Total current assets $11,235,000 $10,047,000 $8,295,000 Property And Equipment, Net, At Cost 851,000 815,000 680,000 Other Assets 157,000 157,000 88,000 ------------ ------------ ----------- TOTAL ASSETS $12,243,000 $11,019,000 $ 9,063,000 ============= ============= ============ [CAPTION] LIABILITIES AND STOCKHOLDERS EQUITY [S] [C] [C] [C] Current Liabilities Accounts Payable, trade $ 173,000 $ 215,000 $ 117,000 Notes Payable, current portion 14,000 27,000 46,000 Accrued Expenses 1,085,000 755,000 427,000 Deferred Current Taxes (31,000) (31,000) (94,000) ------------ ------------ ------------ Total Current Liabilities $ 1,241,000 $ 966,000 $ 496,000 Long Term Liabilities Notes Payable, FKI, Inc. 156,000 156,000 174,000 Deferred Income Taxes 33,000 33,000 34,000 ------------ ------------ ------------ Total Long-Term Liabilities $ 189,000 $ 189,000 $ 208,000 Stockholders Equity Convertible Preferred Stock 257,000 257,000 257,000 Common Stock, Class A 850,000 850,000 850,000 Additional Paid-In Capital 1,674,000 1,674,000 1,674,000 Retained Earnings 8,703,000 7,733,000 6,170,000 Less: Cost of Treasury Stock (671,000) (650,000) (592,000) ------------ ------------ ------------ Total Stockholders Equity $10,813,000 $ 9,864,000 $ 8,359,000 ------------ ------------ ------------ TOTAL LIABILITIES AND STOCKHOLDER EQUITY $12,243,000 $11,019,000 $ 9,063,000 ============ ============= ============ [FN] See Accompanying Notes to Financial Statements GEORGE RISK INDUSTRIES, INC. Statements of Income (unaudited)
for three months for nine months ended ended January 31 Janaury 31 1999 1998 1999 1998 -------------------------------------------------- Net Sales $3,162,000 $2,817,000 $9,508,000 $8,376,000 Less: Cost of Goods Sold 1,665,000 1,455,000 4,957,000 4,479,000 ----------- ------------ ----------- ----------- Gross Profit $1,497,000 $1,362,000 $4,551,000 $3,897,000 Operating Expenses G & A 163,000 155,000 463,000 458,000 Sales 602,000 526,000 1,713,000 1,568,000 Engineering 18,000 19,000 79,000 62,000 ----------- ----------- ----------- ----------- $ 783,000 $ 700,000 $2,255,000 $2,088,000 Income from Operations 714,000 662,000 2,296,000 1,809,000 Other Income (Expenses) Interest Income 74,000 70,000 202,000 200,000 Interest Expense (5,000) (6,000) (16,000) (20,000) Other Income 75,000 2,000 77,000 52,000 ----------- ----------- ----------- ----------- $ 144,000 $ 66,000 $ 263,000 $ 232,000 Income before provision for income tax 858,000 728,000 2,559,000 2,041,000 Provisions for income tax - current portion (273,000) (211,000) (939,000) (783,000) ----------- ----------- ----------- ----------- Net Income $ 585,000 $ 517,000 $1,620,000 $1,258,000 =========== =========== =========== =========== Net Income per common share $ .10 $ .09 $ .27 $ .21 Weighted average number of common shares outstanding 6,054,158 6,080,676 6,054,158 6,085,121 See Accompanying Notes to Financial Statements
GEORGE RISK INDUSTRIES, INC. Statments of Cash Flows [CAPTION] Three months ended Nine months ended January 31 January 31 1999 1998 1999 1998 -------------------------------------------------- [S] [C] [C] [C] [C] Cash Flow From Operating Activities Net Income $ 585,000 $ 517,000 $1,620,000 $1,258,000 Adjustments to reconcile net income to net cash provided by operating activities: Depreciation 27,000 33,000 82,000 92,000 Changes in assets and liabilities: (Increase) Decrease in: Accounts Receivable 62,000 42,000 (238,000) (136,000) Notes Receivable 4,000 0 11,000 0 Inventories (24,000) (238,000) (498,000) 98,000 Prepaid Expenses 4,000 12,000 (14,000) 25,000 Other Assets (47,000) 52,000 (156,000) (44,000) Increase (Decrease) in: Accounts Payable (42,000) (41,000) (23,000) (79,000) Accrued Expenses 57,000 38,000 74,000 61,000 Notes Payable (13,000) (12,000) (38,000) (34,000) Income Tax Payable 273,000 11,000 639,000 75,000 ----------- ----------- ----------- ----------- Net Cash Provided By (Used In) Operating Activities $ 886,000 $ 414,000 $1,459,000 $1,316,000 Cash Flow From Investing Activities: (Purchase) Sale of Prop- erty and Equipment (12,000) (54,000) (18,000) (92,000) (Purchase) Sale of Marketable Securities (183,000) (149,000) (578,000) (1,011,000) ------------ ----------- ----------- ----------- Net Cash Provided By (Used In) Investing Activities (195,000) (203,000) (596,000) (1,103,000) Cash Flow From Financing Activities: (Purchase) of Treasury Stock (20,000) (36,000) (55,000) (36,000) ------------ ----------- ----------- ----------- Net Cash Provided By (Used In) Financing Activities (20,000) (36,000) (55,000) (36,000) Net Increase (Decrease) in Cash $ 671,000 $ 175,000 $ 808,000 $ 177,000 Cash at Beginning of Period $1,040,000 $ 656,000 $ 903,000 $ 654,000 Cash at End of Period $1,711,000 $ 831,000 $1,711,000 $ 831,000 GEORGE RISK INDUSTRIES, INC. Statement of Comprehensive Income For the three and nine months ended January 31, 1999 and 1998 [CAPTION] Three months ended Nine months ended January 31 January 31 1999 1998 1999 1998 ---------------------------------------------------- [S] [C] [C] [C] [C] Net Income $ 585,000 $ 517,000 $1,620,000 $1,258,000 ----------- ----------- ----------- ----------- Other Comprehensive Income, Net of Tax Unrealized gain (loss) on securities: Unrealized holding gains (losses) arising during period 265,000 (106,000) 187,000 (96,000) Less: Reclassification adjustment for (gains) losses included in net income 5,000 6,000 16,000 20,000 ----------- ----------- ----------- ---------- Other Comprehensive Income $ 270,000 $ (100,000) $ 203,000 $ (76,000) Comprehensive Income $ 858,000 $ 417,000 $1,802,000 $1,182,000 GEORGE RISK INDUSTRIES, INC. NOTES TO FINANCIAL STATEMENTS January 31, 1999 Note 1. Inventories At January 31, 1999, October 31, 1998, and January 31, 1998, respectively, inventories consisted fo the following: Raw materials $ 1,666,000 $ 1,430,000 $ 1,124,000 Work in process 272,000 495,000 249,000 Finished Goods 261,000 250,000 253,000 ------------ ------------ ------------ $ 2,199,000 $ 2,175,000 $ 1,626,000 Less: Allowance for obsolete inventory (46,000) (46,000) (46,000) ------------ ------------ ------------ Total Inventory $ 2,153,000 $ 2,129,000 $ 1,580,000 ============ ============ ============ GEORGE RISK INDUSTRIES, INC. Part I. FINANCIAL INFORMATION Item 2. 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 $671,000 during the three months ended January 31, 1999, and increased $808,000 for the nine months ended January 31, 1999. This is compared to an increase of $175,000 for the three months ended January 31, 1998 and a $177,000 increase for the nine months ended January 31, 1998. Accounts receivable increased $238,000 for the current nine months as compared to a $136,000 increase for the corresponding nine months last year. Accounts receivable collections averaged $1,059,000 for the quarter ended January 31, 1999, as compared to $966,000 for the same quarter last year. Inventory increased $498,000 for the nine months ended January 31, 1999, as compared to a decrease of $98,000 for the coinciding period last year. The increase is in part of being prepared for any mishaps that the Y2K millennium bug may or may not have on our vendors and for the increased sales the Company has estimated it will have for the current fiscal year. Other assets increased $156,000 for the current nine month period. Included in this amount are deposits being made for equipment and services for the Company's upcoming business expansion, and for dies and molds that are being made in house and all will be capitalized at time of completion. Net cash used in investing activities was $596,000 for the nine months ended January 31, 1999 as compared to $1,103,000 for the same period last fiscal year. Reasons for the substantial decrease are that the Company purchased a new computer system that is Y2K compliant and not as many marketable securities were purchased by the Company in the current fiscal period. Net cash used in financing activities increased 53% during the current nine months because the Company is continuing to buy up shares of its common stock and holding them in its treasury. Working capital at January 31, 1999 was $9,994,000 as compared to $7,789,000 at January 31, 1998. The current ratio at January 31, 1999 was 8.857 and was 14.202 at January 31, 1998. The acid test ratio was 7.093 at January 31, 1999 and was 11.200 at January 31, 1998. Cash per share (including market- able securities) was $1.16 and equity per share was $1.79 at January 31, 1999. Net sales were $3,162,000 for the quarter ended January 31, 1999 which is a 12% increase for the corresponding quarter last year. As for the nine months, net sales were $9,508,000 at January 31, 1999 and $8,376,000 at January 31, 1998. This is a 13.5% increase. Cost of goods sold was 52% of gross sales for the quarter ended January 31, 1999, and 51% of gross sales for the nine months ended January 31, 1999. For the corresponding periods last year, cost of goods sold was 50% and 53% of gross sales. Having relatively the same percentage of cost of goods sold from period to period shows that the Company keeps its costs in line. The Company has increased its cost of materials and direct labor in proportion to how its sales have increased. Operating expenses were 25% of net sales for the quarters ended January 31, 1999 and 1998. For the nine months ended January 31, 1999, operating expenses were 24% of net sales and were at 25% of net sales for the same period last year. Having relatively the same percentages for all periods shows that management keeps a close eye on its operating expenses to keep them in line from year to year. As sales have increased, management has increased wages and staff accordingly. Also, the Company has implemented a 401(K) retirement plan and contributes a percentage to those involved with the plan in order to keep the operating expenses in line with sales. Interest income totaled $74,000 for the quarter ended January 31, 1999 and $70,000 for the quarter ended January 31, 1998. Total other income increased $78,000 during the current quarter to $144,000 as compared to $66,000 for the quarter ended January 31, 1998. For the nine months ended January 31, 1999, other income totaled $263,000 as compared to $232,000 for the nine months for the year before. This increase is due to the realized gains on investments. Since the stock market has been flourishing, the Company has been actively trading its marketable securities. Net income increased 29% to $1,620,000 for the nine months ended January 31, 1999 as compared to $1,258,000 for the same period last year. Earnings per share for the nine months ended January 31, 1999 was $0.27 and was $0.21 for the nine months ended January 31, 1998. The Company recognizes its revenues when goods are shipped and billed to its customers. There is a $50,000 allowance that was established by the Company to account for any uncollectable accounts. In 1997, the Financial Accounting Standards Board issued SFAS No. 131, "Disclosure about Segments of an Enterprise and Related Information", which changes the way public companies report information about their business segments. Although the Company does have two distinct business segments, security alarm products and keyboard products, the keyboard line is less than 10% of the total sales and therefore is not required to be recognized as a separate segment. The Company has been busy developing new products. To continue its work in the new housing market, the Company will soon release a programmable thermo- stat using microprocessor technology, a contact switch set that will easily fit into the new hollow door and window installations, and an under the counter hold-up device without moving parts so the operation of sounding an alarm is totally silent. The Company has also developed a moisture sensor product called the Hydro Sensor. This is a microcontroller based design for irrigation applications. This product is an evolutionary step to precision watering based on soil content and it is independent of soil types. As far as Y2K readiness, management has taken many steps to become Y2K compliant. All of the Company's products are compliant because none of the products manufactured create or use date/data information. The Company has purchased new computer software which is Y2K compliant and has replaced hardware systems that did not meet compliance issues. The Company has also polled its vendors and suppliers with a questionnaire about their Y2K readi- ness and the replies have been favorable. The Company received a grant from the city of Kimball, NE for the purpose of expansion by purchasing new equipment and building an addition to its existing facility. The Company has estimated total costs for this project to be $253,000, of which approximately 50% has been spent as of January 31, 1999. The remaining balance should be spent by July 31, 1999, depending upon completion of the construction of the new addition. 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 Date Schedule B. Reports on Form 8-K No 8-K reports filed during the quarter ended Janaury 31, 1999 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 03-15-99 Ken R. Risk Ken R. Risk, Director Date 03-15-99 Eileen M. Risk Eileen M. Risk, Director EX-27 2 ARTICLE 5 FIN. DATA SCHEDULE FOR 3RD GTR 10-QSB
5 1,000 9-MOS APR-30-1999 MAY-01-1998 JAN-31-1999 1711 5304 2057 50 2153 11235 1808 957 12243 1241 0 850 0 257 0 12243 9508 9508 4957 4957 0 0 16 2559 939 1620 0 0 0 1620 .27 .27
-----END PRIVACY-ENHANCED MESSAGE-----