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
<PAGE>
PART I. FINANCIAL INFORMATION
<PAGE>
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
<PAGE>
<TABLE>
GEORGE RISK INDUSTRIES INC.
STATEMENTS OF INCOME
(unaudited)
<CAPTION>
for three months for nine months
ended ended
October 31 October 31
1998 1997 1998 1997
_______________________ _______________________
<S> <C> <C> <C> <C>
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
<FN>
See Accompanying Notes To Financial Statements
</TABLE>
<PAGE>
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
<PAGE>
GEORGE RISK INDUSTRIES, INC
Part I. FINANCIAL INFORMATION
Item 1. 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 $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.
<PAGE>
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.
<PAGE>
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.
<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 January 31, 1998
<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 12-15-98 Ken R. Risk
Ken R. Risk, Director
Date 12-15-98 Eileen M. Risk
Eileen M. Risk, Director
<TABLE> <S> <C>
<ARTICLE> 5
<MULTIPLIER> 1,000
<S> <C>
<PERIOD-TYPE> 6-MOS
<FISCAL-YEAR-END> APR-30-1999
<PERIOD-START> MAY-01-1998
<PERIOD-END> OCT-31-1998
<CASH> 1040
<SECURITIES> 4736
<RECEIVABLES> 2120
<ALLOWANCES> 50
<INVENTORY> 2130
<CURRENT-ASSETS> 10078
<PP&E> 1744
<DEPRECIATION> 929
<TOTAL-ASSETS> 11050
<CURRENT-LIABILITIES> 1022
<BONDS> 0
<COMMON> 850
0
257
<OTHER-SE> 0
<TOTAL-LIABILITY-AND-EQUITY> 11050
<SALES> 6445
<TOTAL-REVENUES> 6445
<CGS> 3292
<TOTAL-COSTS> 3292
<OTHER-EXPENSES> 0
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 11
<INCOME-PRETAX> 1698
<INCOME-TAX> 667
<INCOME-CONTINUING> 1031
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 1031
<EPS-PRIMARY> .17
<EPS-DILUTED> .17
</TABLE>
