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.
<PAGE>
PART I. FINANCIAL INFORMATION
<PAGE>
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
<PAGE>
<TABLE>
GEORGE RISK INDUSTRIES, INC.
Statements of Income
(unaudited)
<CAPTION>
for three months for nine months
ended ended
January 31 Janaury 31
1999 1998 1999 1998
--------------------------------------------------
<S> <C> <C> <C> <C>
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
<FN>
See Accompanying Notes to Financial Statements
</TABLE>
<PAGE>
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
<PAGE>
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
<PAGE>
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
============ ============ ============
<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, 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.
<PAGE>
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.
<PAGE>
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.
<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 Date Schedule
B. Reports on Form 8-K
No 8-K reports filed during the quarter
ended Janaury 31, 1999
<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 03-15-99 Ken R. Risk
Ken R. Risk, Director
Date 03-15-99 Eileen M. Risk
Eileen M. Risk, Director
<TABLE> <S> <C>
<ARTICLE> 5
<MULTIPLIER> 1,000
<S> <C>
<PERIOD-TYPE> 9-MOS
<FISCAL-YEAR-END> APR-30-1999
<PERIOD-START> MAY-01-1998
<PERIOD-END> JAN-31-1999
<CASH> 1711
<SECURITIES> 5304
<RECEIVABLES> 2057
<ALLOWANCES> 50
<INVENTORY> 2153
<CURRENT-ASSETS> 11235
<PP&E> 1808
<DEPRECIATION> 957
<TOTAL-ASSETS> 12243
<CURRENT-LIABILITIES> 1241
<BONDS> 0
<COMMON> 850
0
257
<OTHER-SE> 0
<TOTAL-LIABILITY-AND-EQUITY> 12243
<SALES> 9508
<TOTAL-REVENUES> 9508
<CGS> 4957
<TOTAL-COSTS> 4957
<OTHER-EXPENSES> 0
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 16
<INCOME-PRETAX> 2559
<INCOME-TAX> 939
<INCOME-CONTINUING> 1620
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 1620
<EPS-PRIMARY> .27
<EPS-DILUTED> .27
</TABLE>
