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, 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
PART I. FINANCIAL INFORMATION
GEORGE RISK INDUSTRIES, INC.
Balance Sheet
October 31, 1996
[CAPTION]
[S] [C]
ASSETS
Current Assets
Cash $ 1,289,000
Marketable securities 2,703,000
Accounts receivable:
Trade, net of $50,000 doubtful
account allowance 1,099,000
Officers and employees 1,000
Inventories (Note 1) 1,281,000
Prepaid expenses 104,000
Deferred income taxes 52,000
___________
Total current assets 6,529,000
Property And Equipment, Net, At Cost 636,000
Other Assets 101,000
___________
TOTAL ASSETS $ 7,266,000
[CAPTION]
LIABILITIES AND STOCKHOLDERS EQUITY
[S] [C]
Current Liabilities
Accounts payable, trade $ 124,000
Notes payable, current portion 76,000
Accrued expenses 500,000
___________
Total current liabilities 700,000
Long term Liabilities
Notes payable, FKI, Inc. 209,000
Deferred Income Taxes 27,000
___________
Total long term liabilities 236,000
Stockholders Equity
Convertible preferred stock 257,000
Common stock, Class A 850,000
Additional paid-in capital 1,644,000
Retained earnings 4,145,000
Less cost of treasury stock (566,000)
___________
Total stockholders equity 6,330,000
___________
TOTAL LIABILITIES AND STOCKHOLDERS EQUITY $ 7,266,000
[FN]
See Accompanying Notes to Financial Statements
GEORGE RISK INDUSTRIES INC.
STATEMENTS OF INCOME
(unaudited)
for three months for six months
ended ended
Oct.31 Oct.31
1996 1995 1996 1995
_______________________ _________________________
Net sales $2,936,000 $2,523,000 $5,652,000 $4,924,000
Less cost of
goods sold 1,597,000 1,303,000 3,026,000 2,502,000
_______________________ _________________________
Gross profit $1,339,000 $1,220,000 $2,626,000 $2,422,000
Operating expenses
G&A 140,000 170,000 279,000 325,000
Sales 577,000 586,000 1,046,000 1,044,000
Engineering 3,000 14,000 4,000 28,000
_______________________ _________________________
$ 720,000 $ 770,000 $1,329,000 $1,397,000
Income from
operations 619,000 450,000 1,297,000 1,025,000
Other income
(expenses)
Interest income 43,000 43,000 95,000 83,000
Interest expense (8,000) (1,000) (17,000)
_______________________ _________________________
$ 35,000 $ 42,000 $ 78,000 $ 83,000
Income before prov-
ision for income
tax $ 654,000 $ 492,000 $1,375,000 $1,108,000
Provision for income
tax
Current expense 274,000 238,000 577,000 512,000
_______________________ _________________________
Net Income $ 380,000 $ 254,000 $ 798,000 $ 596,000
Net income per
common share $ .062 $ 0.05 .13 .10
Weighted average
number of common
shares out-
standing 6,061,698 6,080,919 6,061,698 6,080,919
<FN>
See Accompanying Notes To Financial Statements
GEORGE RISK INDUSTRIES, INC
Statements of Cash Flows
For The Six Months Ended October 31, 1996 and 1995
[CAPTION] 1996 1995
___________________________
[S] [C] [C]
Cash Flow From Operating
Activities:
Net income $ 798,000 $ 596,000
Adjustments to reconcile
net income to net cash
provided by operating
activities:
Depreciation 50,000 44,000
Officer Compensation 0 26,000
Changes in assets
and liabilities:
(Increase) decrease
in:
Accounts receivable (130,000) 111,000
Note Receivable 1,000 0
Inventories 190,000 (208,000)
Prepaid expenses 61,000 4,000
Increase (decrease)
in:
Accounts payable 66,000 85,000
Accrued expenses (18,000) (1,000)
Notes payable (36,000) 426,000
Income tax payable 105,000 83,000
Class II deferred 0 (20,000)
Net cash provided by (used in) _________ __________
operating activities 1,132,000 1,146,000
Cash Flows From Investing
Activities:
(Purchase) sale of property
and equipment (156,000) (75,000)
(Purchase) sale of
marketable securities (594,000) (158,000)
Net cash provided by (used in) __________ __________
investing activities (750,000) (233,000)
Cash Flows From Financing
Activities:
(Purchase) of treasury
stock 0 (544,000)
Net cash provided by (used in) __________ __________
financing activities 0 (544,000)
Net increase (decrease) in
cash $ 382,000 $ 369,000
Cash at beginning
of period $ 907,000 $ 479,000
Cash at end of period $1,289,000 $ 848,000
GEORGE RISK INDUSTRIES, INC
NOTES TO FINANCIAL STATEMENTS
October 31, 1996
Note 1. Inventories
At October 31, 1996, and July 31, 1996, respectively,
inventories consisted of the following:
Raw materials $ 943,000 $ 881,000
Work in process 162,000 201,000
Finished goods 222,000 170,000
___________ ___________
1,327,000 1,252,000
___________ ___________
Less allowance for obsolete
inventory <46,000> <46,000>
___________ ___________
Totals $ 1,281,000 $ 1,471,000
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, 1996.
Net cash decreased $212,000 during the quarter ended October
31, 1996 as compared to an $81,000 increase during the cor-
responding quarter last year. Inventories increased $75,000
or 14% during the current quarter. Inventories increased
$85,000 during the quarter ended October 31, 1995. Prepaid
expenses decreased $10,000 during the quarter ended October
31,1996 as compared to a $8,000 decrease during the quarter
ended October 31, 1995. Advertising catalogs and other lit-
erature make up the prepaid expense and are inventoried and
expensed monthly. Purchases of marketable securities and
property and equipment totalled $444,000 as compared to $116,000
for the corresponding three month period last year. The
company purchased a TMC Molding machine during the current
quarter that cost $53,000 and also purchased additional bonds
and securities totalling $347,000. Purchases of marketable
securities totalled $69,000 for the quarter ended October 31,
1995.
Working capital at October 31, 1996 was $5,829,000 as compared to
$4,661,000 at October 31, 1995. The current ratio was 9.3 for
the quarter ended October 31, 1996 and 8.3 for the quarter ended
October 31, 1995. The acid test ratio was 7.28 at October 31, 1996
as compared to 5.4 at July 31, 1995. The accounts receivable
turnover for the quarter ended October 31, 1996 was 2.7 as
compared to 2.95 for the first quarter last year.
Net sales were $2,936,000 for the quarter ended October 31, 1996
and $2,523,000 for the corresponding quarter last year; a 14%
increase. For the six month period, sales increased 13%, from
$4,924,000 last year to $5,652,000 for the six months ended
October 31, 1996.
Operating espenses were 25% of sales for the three months ended
October 31, 1996 and 24% for the six months ended October 31,
1996. For the three months ended October 31, 1995, operating
expenses were 31% of sales and for the six months ended October
31, 1995, operating expenses were 29% of sales.
Cost of goods sold increased to 54% of sales during the current
quarter as compared to 52% for the corresponding quarter last
year. For the six months ended October 31, 1996, the cost of
goods sold was 54% as compared to 51% for the six months ended
October 31, 1995. The slight increase is due in part to in-
creased labor costs as a result of two significant across the
board wage increases for all full time hourly employees.
Other income totalled $35,000 for the quarter ended October 31,
1996 and $42,000 for the quarter ended October 31, 1995.
For the six months ended October 31, 1996 and 1995, other income
totalled 478,000 and $83,000 respectively. Interest expense
was $8,000 for the quarter ended October 31, 1996. For the six
months ended October 31, 1996 interest expense totalled $17,000.
Interest expense is comprised of imputed interest on the FKI,
Inc., and W.A. Richardson notes. Interest income for the
quarter ended October 31, 1996 was $43,000 which was the same
as the corresponding period last year. For the six months
ended October 31,1996 interest income totalled $95,000 as
compared to$83,000 for the six months ended October 31, 1995.
Management continues to actively pursue a business acquisition
that would compliment our existing product line.
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 October 31, 1996.
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 10-31-96 Ken R. Risk
Ken R. Risk, Director
Date 10-31-96 Eileen M. Risk
Eileen M. Risk, Director