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 January 31, 1997
[ ] 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: 6,087,343
PART I. FINANCIAL INFORMATION
GEORGE RISK INDUSTRIES, INC.
Balance Sheet
July 31, 1997
[CAPTION]
[S] [C]
ASSETS
Current Assets
Cash $ 892,000
Marketable securities 3,862,000
Accounts receivable:
Trade, net of $50,000 doubtful
account allowance 1,150,000
Officers and employees 1,000
Notes Receivable 65,000
Inventories (Note 1) 1,619,000
Prepaid expenses 101,000
___________
Total current assets 7,690,000
Property And Equipment, Net, At Cost 671,000
Other Assets 68,000
___________
TOTAL ASSETS $ 8,429,000
[CAPTION]
LIABILITIES AND STOCKHOLDERS EQUITY
[S] [C]
Current Liabilities
Accounts payable, trade $ 99,000
Notes payable, current portion 46,000
Accrued expenses 523,000
Deferred current taxes <94,000>
___________
Total current liabilities 574,000
Long term Liabilities
Notes payable, FKI, Inc. 197,000
Deferred Income Taxes 34,000
___________
Total long term liabilities 231,000
Stockholders Equity
Convertible preferred stock 257,000
Common stock, Class A 850,000
Additional paid-in capital 1,674,000
Retained earnings 5,399,000
Less cost of treasury stock (556,000)
___________
Total stockholders equity 7,624,000
___________
TOTAL LIABILITIES AND STOCKHOLDERS EQUITY $ 8,429,000
[FN]
See Accompanying Notes to Financial Statements
GEORGE RISK INDUSTRIES INC.
STATEMENTS OF INCOME
(unaudited)
for three months
ended
July 31
1997 1996
_______________________
Net sales $2,552,000 $2,716,000
Less cost of
goods sold 1,379,000 1,429,000
_______________________
Gross profit $1,173,000 $1,287,000
Operating expenses
G&A 154,000 139,000
Sales 414,000 469,000
Engineering 22,000 1,000
_______________________
$ 590,000 $ 609,000
Income from
operations 583,000 678,000
Other income
(expenses)
Interest income 59,000 52,000
Interest expense (8,000) (9,000)
_______________________
$ 51,000 $ 41,000
Income before prov-
ision for income
tax $ 634,000 $ 721,000
Provision for income
tax
Current expense 280,000 303,000
_______________________
Net Income $ 354,000 $ 418,000
Net income per
common share $ .06 $ 0.07
Weighted average
number of common
shares out-
standing 6,087,343 6,061,698
<FN>
See Accompanying Notes To Financial Statements
GEORGE RISK INDUSTRIES, INC
Statements of Cash Flows
For The Three Months Ended July 31, 1997 and 1996
[CAPTION] 1997 1996
___________________________
[S] [C] [C]
Cash Flow From Operating
Activities:
Net income $ 354,000 $ 418,000
Adjustments to reconcile
net income to net cash
provided by operating
activities:
Depreciation 29,000 24,000
Changes in assets
and liabilities:
(Increase) decrease
in:
Accounts receivable 126,000 (53,000)
Note Receivable 1,000
Inventories 59,000 265,000
Prepaid expenses (41,000) 51,000
Increase (decrease)
in:
Accounts payable (97,000) (64,000)
Accrued expenses (49,000) (25,000)
Notes payable (11,000) (16,000)
Income tax payable 280,000 303,000
Net cash provided by (used in) _________ __________
operating activities 645,000 904,000
Cash Flows From Investing
Activities:
(Purchase) sale of property
and equipment (32,000) (63,000)
(Purchase) sale of
marketable securities (374,000) (247,000)
Net cash provided by (used in) __________ __________
investing activities (407,000) (310,000)
Net increase (decrease) in
cash $ 239,000 $ 594,000
Cash at beginning
of period $ 653,000 $ 907,000
Cash at end of period $ 892,000 $1,501,000
GEORGE RISK INDUSTRIES, INC
NOTES TO FINANCIAL STATEMENTS
July 31, 1997
Note 1. Inventories
At July 31, 1997, and April 30, 1997, respectively,
inventories consisted of the following:
Raw materials $ 1,084,000 $ 1,294,000
Work in process 300,000 176,000
Finished goods 281,000 254,000
___________ ___________
1,665,000 1,724,000
___________ ___________
Less allowance for obsolete
inventory <46,000> <46,000>
___________ ___________
Totals $ 1,619,000 $ 1,678,000
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, 1997.
Net cash increased $239,000 during the quarter ended July 31,
1997 as compared to an increase of $594,000 during the corre-
sponding quarter last year. Accounts receivable decreased
$126,000 during the current quarter and increased $53,000
during the quarter ended July 31, 1996. This is in direct
relation to the $164,000 decreased in net sales over the
same period last year. Prepaid expenses increased $41,000
for the quarter ended July 31, 1997 as compared to a $51,000
decrease for the quarter ended July 31, 1996. The prepaid
expense is largely comprised of prepaid advertising liter-
ature that is inventoried and expensed monthly as used. Net
cash used in investing activities totalled $407,000 as com-
pared to $310,000 for the same period last year. The Company
continues to invest its excess cash in interest bearing bonds
and securities.
Working capital at July 31,1997 was $7,116,000 as compared to
$5,565,000 at July 31, 1996. The current ratio was 13.4 for
the quarter ended July 31, 1997 and 8.78 for the quarter ended
July 31, 1996. The accounts receivable turnover was 2.1 for
the quarter ended July 31, 1997 and 2.7 for the same quarter
last year. The acid test ratio was 10.3 at July 31, 1997 as
compared to 6.9 at July 31, 1996.
As a percent of sales, cost of goods sold increased 1.4% during
the quarter ended July 31, 1997 as compared to the corre-
sponding quarter last year. This increase reflects the labor
and other related costs that stem from the 20 additional full
time people employed at the Gering facility.
Interest expense totalled $8000 for the quarter ended July 31,
1997 as compared to $9000 for the quarter ended July 31, 1996.
On August 28,1997 the Company entered into an exclusive man-
ufacaturing agreement with Paradigm Advanced Technologies, Inc.
Paradigm designs software utilizing digital global positioning
for surveillance and security tracking applications. GRI will
manufacture the hardware systems that utilize this software.
Management expects production to begin in approximately six
months.
Effective September 1, 1997, the federal minimum wage increased
to $5.15 per hour. This change will increase GRI's annual
payroll by
The Company continues to operate it's satellite plant in Gering,
NE with employment at that site currently at 20 people. The
main facility currently employs 250 for a total of 270 employees.
Management expects to see sales continue to increase during
the fourth quarter and expects employment to to remain at
270-275 employees. The Company is researching new areas of
product development and looking forward to expanding existing
product lines also. The search for a business acquisition
continues and management actively pursues different avenues of
opportunity in relation to manufacturing automation and equip-
ment upgrading.
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, 1997
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 07-31-97 Ken R. Risk
Ken R. Risk, Director
Date 07-31-97 Eileen M. Risk
Eileen M. Risk, Director