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 July 31, 1996
[ ] 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: 6,061,698
<PAGE>
PART I. FINANCIAL INFORMATION
<PAGE>
GEORGE RISK INDUSTRIES, INC.
Balance Sheet
July 31, 1996
[CAPTION]
[S] [C]
ASSETS
Current Assets
Cash $ 1,501,000
Marketable securities 2,385,000
Accounts receivable:
Trade, net of $50,000 doubtful
account allowance 1,022,000
Officers and employees 1,000
Inventories (Note 1) 1,205,000
Prepaid expenses 115,000
Deferred income taxes 52,000
___________
Total current assets 6,281,000
Property And Equipment, Net, At Cost 594,000
Other Assets 75,000
___________
TOTAL ASSETS $ 6,950,000
[CAPTION]
LIABILITIES AND STOCKHOLDERS EQUITY
[S] [C]
Current Liabilities
Accounts payable, trade $ (6,000)
Notes payable, current portion 77,000
Accrued expenses 645,000
___________
Total current liabilities 716,000
Long term Liabilities
Notes payable, FKI, Inc. 229,000
Deferred Income Taxes 27,000
___________
Total long term liabilities 256,000
Stockholders Equity
Convertible preferred stock 257,000
Common stock, Class A 850,000
Additional paid-in capital 1,644,000
Retained earnings 3,793,000
Less cost of treasury stock (566,000)
___________
Total stockholders equity 5,978,000
___________
TOTAL LIABILITIES AND STOCKHOLDERS EQUITY $ 6,950,000
[FN]
See Accompanying Notes to Financial Statements
<PAGE>
GEORGE RISK INDUSTRIES INC.
STATEMENTS OF INCOME
(unaudited)
[CAPTION]
for three months
ended
Jul.31
1996 1995
_______________________
[S] [C] [C]
Net sales $2,716,000 $2,402,000
Less cost of
goods sold 1,429,000 1,199,000
_______________________
Gross profit $1,287,000 $1,203,000
Operating expenses
G&A 139,000 154,000
Sales 469,000 458,000
Engineering 1,000 14,000
_______________________
$ 609,000 $ 626,000
Income from
operations 678,000 577,000
Other income
(expenses)
Interest income 52,000 39,000
Interest expense (9,000)
_______________________
$ 41,000 $ 39,000
Income before prov-
ision for income
tax $ 721,000 $ 616,000
Provision for income
tax
Current expense 303,000 273,000
_______________________
Net Income $ 418,000 $ 343,000
Net income per
common share $ 0.07 $ 0.06
Weighted average
number of common
shares out-
standing 6,061,698 6,622,908
[FN]
See Accompanying Notes To Financial Statements
<PAGE>
GEORGE RISK INDUSTRIES, INC
Statements of Cash Flows
For The Three Months Ended July 31, 1996 and 1995
[CAPTION] 1996 1995
___________________________
[S] [C] [C]
Cash Flow From Operating
Activities:
Net income $ 418,000 $ 343,000
Adjustments to reconcile
net income to net cash
provided by operating
activities:
Depreciation 24,000 22,000
Changes in assets
and liabilities:
(Increase) decrease
in:
Accounts receivable (53,000) 52,000
Note Receivable 1,000 0
Inventories 265,000 (123,000)
Prepaid expenses 51,000 (4,000)
Increase (decrease)
in:
Accounts payable (64,000) (17,000)
Accrued expenses (25,000) 13,000
Notes payable (16,000) (100,000)
Income tax payable 303,000 218,000
Net cash provided by (used in) _________ __________
operating activities 904,000 404,000
Cash Flows From Investing
Activities:
(Purchase) sale of property
and equipment (63,000) (28,000)
(Purchase) sale of
marketable securities (247,000) (88,000)
Net cash provided by (used in) __________ __________
investing activities (310,000) (116,000)
Net increase (decrease) in
cash $ 594,000 $ 288,000
Cash at beginning
of period $ 907,000 $ 479,000
Cash at end of period $1,501,000 $ 767,000
<PAGE>
GEORGE RISK INDUSTRIES, INC
NOTES TO FINANCIAL STATEMENTS
January 31, 1996
Note 1. Inventories
At July 31, 1996, and April 30, 1996, respectively,
inventories consisted of the following:
Raw materials $ 881,000 $ 1,124,000
Work in process 201,000 166,000
Finished goods 170,000 227,000
___________ ___________
1,252,000 1,517,000
___________ ___________
Less allowance for obsolete
inventory <46,000> <46,000>
___________ ___________
Totals $ 1,205,000 $ 1,471,000
<PAGE>
GEORGE RISK INDUSTRIES, INC
Part I. FINANCIAL INFORMATION
Item 2. Management Discussion and Analysis of
Financial Condition and Results of
Operations.
<PAGE>
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, 1996.
Net cash increased $594,000 during the quarter ended July 31,
1996 as compared to an increase of $288,000 during the corres-
ponding quarter last year. Inventories decreased $265,000 or
18% during the current quarter. This is due in part to an
increase in sales which resulted in less stocked items on hand.
Inventories increased $123,000 during the quarter ended July
31, 1995. Prepaid expenses decreased $51,000 during the quarter
ended July 31, 1996. The deposit on the new computer system,
which totalled $41,000, was moved from the prepaid expense to
property, plant and equipment when it became operational in May.
The purchases of marketable securities and property and equip-
ment totalled $310,000 for the current quarter. The company
invested $200,000 in the purchase of additional municipal bonds.
Fixed asset purchases included a pen plotter for the Engineering
department and a welder and drill press for production. Cash
used in investing activities totalled $116,000 for the com-
parable period last year.
Working capital at July 31, 1996 was $5,565,000 as compared to
$4,418,000 at July 31, 1995. The current ratio was 8.78 for
the quarter ended July 31, 1996 and 7.30 for the quarter ended
July 31, 1995. The acid test ratio was 6.9 at July 31, 1996
as compared to 4.8 at July 31, 1995. The accounts receivable
turnover for the first quarter ended July 31, 1996 was 2.7 as
compared to 2.6 for the first quarter last year.
Net sales for the three months ended July 31, 1996 increased 13%
as compared to the corresponding three month period last year.
As a percent of sales, cost of goods sold increased 2.71% as
compared to the quarter ended July 31, 1995. This increase is
due mainly to higher labor and wage related expenses in relation
to keeping up with the increase in sales. Effective July 1, 1996
management authorized a .10 (ten cent) per hour wage increase
for all full time hourly employees. This across the board increase
will increase the company's payroll expenses approximately
$30,000 for the fiscal year ending April 30, 1997.
Interest expense totalled $9,000 for the current quarter compared
to no interest expense for the three months ended July 31, 1995.
The expense is comprised of imputed interest on the Forward
Kimball Industries note payable and the W.A. Richardson note
payable. The purpose of these notes was the purchase of George
Risk Industries Inc., common stock by the company as reported
at the time of purchase. Interest income increased 32% for the
quarter ended July 31, 1996 as compared to the same period last
year. The company continues to invest its excess cash in interest
bearing marketable securities.
During the next quarter the company will be purchasing a TMC
molding machine with an approximate cost of $52,000. This
machine is fully automated and computerized and will be oper-
ated in addition to the four machines that are in use now. The
machine will enable the department to keep up with the increased
demand for plastic parts and will be more energy efficient.
Management announced that they will expand assembly operations
in Gering, Nebraska in late September 1996. This will result
in the initial hiring of 20 additional employees with the
possibility of more at a later date. Management does not
anticipate any increase in overall operating expenses or capital
asset purchases that will be material to the company's financial
position. The company purchased a used mini van in August
1996 for sales purposes and will utilize it for any commuting
or transportation to and from the Gering site.
Also effective in the next quarter will be a wage increase due to
the change in the minimum wage law passed by congress recently.
Effective September 1, 1996, all full time hourly employees who
are earning less than $5.00 per hour will receive an increase
to $5.00 per hour. All part-time hourly employees will be in-
creased to the mandatory $4.75 per hour minimum wage. Salaried
employees and others earning more than $5.00 per hour will be
compensated for the change individually at the time of their
annual review. Management anticipates that this will increase
the payroll and related expenses approximately $60,000 this
fiscal year, bringing the annual payroll to slightly more than
$3,000,000.
<PAGE>
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 July 31, 1996.
<PAGE>
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 07-31-96 Ken R. Risk
Ken R. Risk, Director
Date 07-31-96 Eileen M. Risk
Eileen M. Risk, Director
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<S> <C>
<PERIOD-TYPE> 3-MOS
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<PERIOD-START> MAY-01-1996
<PERIOD-END> JUL-31-1996
<CASH> 1501
<SECURITIES> 2385
<RECEIVABLES> 1073
<ALLOWANCES> 50
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0
257
<OTHER-SE> 0
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<CHANGES> 0
<NET-INCOME> 418
<EPS-PRIMARY> .07
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