-----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, LwwnBqLv+cZ+1tScUUx0H6K4JPSxiwEZE8nT+CveTETjrkQzKiWcv/+0K76Ob6TE XfJtmO5yvgi+MYXXaf10qA== 0000084112-99-000005.txt : 19990503 0000084112-99-000005.hdr.sgml : 19990503 ACCESSION NUMBER: 0000084112-99-000005 CONFORMED SUBMISSION TYPE: 10QSB PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 19980731 FILED AS OF DATE: 19990429 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: 99605275 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 SECURITES AND EXCHANGE COMMISSION Washington, DC 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 July 31, 1998 [ ] Transition report under Section 13 or 15(d) ot 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) n/a (Former name, address and fiscal year, if changed from 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: PART I. FINANCIAL INFORMATION GEORGE RISK INDUSTRIES, INC. BALANCE SHEET JULY 31, 1998 AND 1997 [CAPTION] [S] [C] [C] ASSETS CURRENT ASSETS Cash $ 710,000 $ 883,000 Marketable Securities 4,821,000 3,862,000 Accounts Receivable:Trade Net of $50,000 Doubtful Accounts Allowance 1,921,000 1,150,000 Officers and Employees 3,000 2,000 Inventories 2,126,000 1,619,000 Notes Receivable 11,000 65,000 Prepaid Expenses 104,000 106,000 Deferred Income Taxes 31,000 94,000 ------------ ------------ Total Current Assets $ 9,685,000 $ 7,781,000 Property, Plant and Equipment, Net at Cost 642,000 671,000 Other Assets 265,000 63,000 ------------ ------------ Total Assets $10,592,000 $ 8,515,000 ============ ============ [CAPTION] LIABILITIES AND STOCKHOLDER'S EQUITY [S] [C] [C] CURRENT LIABILITIES Accounts Payable, Trade $ 239,000 $ 90,000 Notes Payable 52,000 46,000 Accrued Expenses 526,000 523,000 ------------ ------------ Total Current Liabilities $ 817,000 $ 659,000 LONG-TERM LIABILITIES Deferred Taxes 33,000 34,000 Notes Payable 144,000 197,000 ------------ ------------ Total Long-Term Liabilities $ 177,000 $ 231,000 STOCKHOLDER'S EQUITY Preferred Stock 257,000 257,000 Common Stock, Class "A" 850,000 850,000 Additional Paid-In Capital 1,674,000 1,674,000 Retained Earnings 7,468,000 5,400,000 Less: Cost of Treasury Stock (651,000) (556,000) ------------ ------------ Total Stockholder's Equity $ 9,598,000 $ 7,625,000 ------------ ------------ Total Liabilities and Stockholder's Equity $10,592,000 $ 8,515,000 ============ ============ GEORGE RISK INDUSTRIES, INC. Statement of Income For the three months ended July 31, 1998 July 31, 1997 Net Sales $ 2,905,000 $ 2,551,000 Less: Cost of Goods Sold (1,529,000) (1,379,000) ------------ ------------ Gross Profit $ 1,376,000 $ 1,172,000 Operating Expenses: General and Administrative 147,000 154,000 Sales 444,000 413,000 Engineering 27,000 22,000 ------------ ------------ Total Operating Expenses $ 618,000 $ 589,000 Income From Operations 758,000 583,000 Other Income (Expense) Interest Income 6,000 11,000 Interest Expense (6,000) (8,000) Other Income 57,000 47,000 ------------ ------------ $ 57,000 $ 51,000 Income Before Provision For Income Taxes 815,000 634,000 Provision For Income Taxes Current Portion (286,000) (280,000) ------------ ------------ Net Income $ 529,000 $ 354,000 ============ ============ Income Per Share of Common Stock $ .09 $ .06 Weighted Average Number of Common Shares Outstanding 6,059,108 6,087,343
GEORGE RISK INDUSTIES, INC. Statement of Cash Flows (unaudited) [CAPTION] for the three months ended July 31 1998 1997 --------------------------- [S] [C] [C] Cash Flow from Operating Activities: Net Income $ 529,000 $ 354,000 Adjustemnt to reconcile net income to cash provided by operating activities: Depreciation 27,000 30,000 Changes in assets and liabilities: (Increase) Decrease: Accounts Receivable (151,000) 125,000 Other Receivables (1,000) 0 Notes Receivable 4,000 0 Inventories (471,000) 58,000 Prepaid Expenses (18,000) (38,000) Other Assets (19,000) (11,000) Increase (Decrease) Accounts Payable 43,000 (106,000) Accrued Expenses (132,000) (48,000) Notes Payable (12,000) (11,000) Income Tax Payable 286,000 280,000 ----------- ----------- Net Cash Provided by (Used in) Operating Activities $ 85,000 $ 624,000 Cash Flow from Investing Activities: (Purchase) Sale of Property and Equipment (5,000) (20,000) (Purchase) Sale of Marketable Securities (239,000) (374,000) ----------- ----------- Net Cash Provided by (Used in) Investing Activities $ (244,000) $ (394,000) Net Increase (Decrease) in Cash $ (193,000) $ 239,000 Cash at Beginning of Period $ 903,000 $ 653,000 Cast at End of Period $ 710,000 $ 892,000 GEORGE RISK INDUSTRIES, INC. Statement of Comprehensive Income For the three months ended July 31, 1998 and 1997 [S] [C] [C] Net Income $ 529,000 $ 354,000 ----------- ----------- Other Comprehensive Income, Net of Tax Unrealized gain (loss) on securities: Unrealized holding gains (losses) arising during period 99,000 56,000 Less: Reclassification adjustment for losses included in net income 6,000 8,000 ----------- ----------- Other Comprehensive Income $ 105,000 $ 64,000 Comprehensive Income $ 634,000 $ 418,000 =========== =========== GEORGE RISK INDUSTRIES, INC. NOTES TO FINANCIAL STATEMENTS JULY 31, 1998 Note 1. Inventories At July 31, 1998 and July 31, 1997, respectively, inventories consisted of the following: Raw Materials $ 1,428,000 $ 1,084,000 Work in Process 301,000 300,000 Finished Goods 443,000 281,000 ------------ ------------ Less: Allowance for obsolete inventory (46,000) (46,000) ------------ ------------ Total Inventory $ 2,126,000 $ 1,619,000 ============ ============ 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 decreased $194,000 during the quarter ended July 31, 1998 as compared to an increase of $230,000 during the corresponding quarter last year. Inventories increased $471,000 during the current quarter as com- pared to a $58,000 decrease last year. The finished goods inventory increased as the Company was able to utilize the sub assembly operation in Gering to build for stock as well as for the increased orders. The Company was also able to take advantage of cost savings on quantity pur- chases of raw materials. Accounts receivable decreased $151,000 during the current quarter. The Company continues to collect its accounts within terms with 93% of the total receivables considered current at less than 45 days and only 4% of the total 90 days past due. Operating expenses were 21% of net sales for the quarter ended July 31, 1998, down from 23% for the same period last year. Net cash used in investing activities de- creased from $394,000 last year to $244,000 for the current quarter. Purchases of marketable securities were down $135,000 from the comparable quarter last year. Income tax expense increased $286,000 this current first quarter compared to $280,000 last year. Although income before taxes increased $181,000, the tax expense reflects a book adjustment dur- ing the current quarter for over accruals of tax expense for the fiscal year ended April 30, 1998. As a percent of sales, cost of goods sold remained at 53% for the current quarter and was 54% for the first quarter last year. Working capital at July 31, 1998 was $8,868,000 as compared to $7,122,000 at July 31, 1997. The current ratio was 11.85 and 11.81 for the quarters 1998 and 1997. The acid test ratio was 9.12 at July 31, 1998 and 8.95 at July 31, 1997. Cash per share (including marketable securities) was $0.91 and equity per share was $1.58 at July 31, 1998. Net income increased 49% for the three months compared tothe three months ended July 31, 1997, with sales increasing 14% over the first quarter last year. The Company continues to keep labor costs in line and closely monitors all operating expenses. The Company recognizes its revenues when goods are shipped and billed to its cumstomers. There is a $50,000 allowance that was established by the Company to account for any uncolletable 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 announced plans for a 7,200 ft. expansion of its main production facility with the total project cost estimated at $200,000. Federal funds made available through a Community Development grant have been awarded for a portion of the expense. GRI has committed to the cre- ation of additional jobs and continued employment levels as a provision of the grant as well as capital equipment purchases. Construction is expected to begin in March 1999. 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 filed during the quarter ended July 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 under- signed, thereunto duly authorized. George Risk Industries, Inc. (Registrant) Date 04-23-99 Ken R. Risk Ken R. Risk, Director Date 04-23-99 Eileen M. Risk Eileen M. Risk, Director EX-27 2 ARTICLE 5 FIN. DATA SCHEDULE FOR 1ST QTR 10-QSB
5 1,000 3-MOS APR-30-1999 MAY-01-1998 JUL-31-1998 709 4822 1971 50 2126 9685 1544 902 10593 817 0 850 0 257 0 10593 2905 2905 1529 1529 0 0 6 815 286 529 0 0 0 529 .09 .09
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