UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, DC 20549
FORM 10-QSB
(Mark One)
[ X ] Quarterly report under Section 13 or 15(d) of the Securities Ex-
change Act of 1934
For the quarter ended October 31, 2007
[ ] Transition report under Section 13 or 15(d) of the Securities Ex-
change Act of 1934
For the transition period from __________ to __________
Commission File Number: 000-05378
GEORGE RISK INDUSTRIES, INC.
(Exact name of small business issuer as specified in its charter)
Colorado 84-0524756
(State of incorporation) (IRS Employers Identification No.)
802 South Elm St.
Kimball, NE 69145
(Address of principal executive offices) (Zip Code)
Registrant's telephone number, including area code: (308) 235-4645
APPLICABLE ONLY TO CORPORATE ISSUERS
The number of shares of the Registrant's Common Stock outstanding, as of
December 14, 2007 was 5,334,278.
Transitional Small Business Disclosure Format: Yes [ X ] No [ ]
GEORGE RISK INDUSTRIES, INC.
PART I. FINANCIAL INFORMATION
Item 1. Financial Statements
The unaudited financial statements for the three and six month period
ended October 31, 2007, are attached hereto.
GEORGE RISK INDUSTRIES, INC.
BALANCE SHEETS
October 31, April 30,
2007 2007
------------ ------------
(unaudited)
ASSETS
Current Assets
Cash and cash equivalents $ 4,297,000 $ 4,611,000
Marketable securities (Note 2) 17,826,000 16,738,000
Accounts receivable:
Trade, net of $50,000 doubtful
account allowance 1,730,000 1,925,000
Other 1,000 3,000
Note receivable, current 3,000 0
Income tax overpayment 377,000 137,000
Inventories (Note 3) 3,011,000 3,060,000
Prepaid expenses 113,000 125,000
Property tax overpayment 5,000 0
Deferred income taxes 46,000 115,000
------------ ------------
Total Current Assets $27,409,000 $26,714,000
Property and Equipment, net at cost $ 912,000 $ 828,000
Other Assets
Investment in Land Limited Partnership,
at cost 200,000 200,000
Projects in process 39,000 75,000
Note receivable 74,000 60,000
Other 1,000 18,000
------------ ------------
Total Other Assets $ 314,000 $ 353,000
TOTAL ASSETS $28,635,000 $27,895,000
============ ============
GEORGE RISK INDUSTRIES, INC.
BALANCE SHEETS
October 31, April 30,
2007 2007
------------ ------------
(unaudited)
LIABILITIES AND STOCKHOLDERS' EQUITY
Current Liabilities
Accounts payable, trade $ 98,000 $ 127,000
Dividends payable 239,000 161,000
Accrued expenses
Payroll and other expenses 369,000 337,000
------------ ------------
Total Current Liabilities $ 706,000 $ 625,000
Long-Term Liabilities
Notes payable 25,000 25,000
Deferred income taxes 57,000 74,000
------------ ------------
Total Long-Term Liabilities $ 82,000 $ 99,000
Stockholders' Equity
Convertible preferred stock, 1,000,000
shares authorized, Series 1-noncumulative,
$20 stated value, 25,000 shares authorized,
4,100 issued and outstanding 99,000 99,000
Common stock, Class A, $.10 par value,
10,000,000 shares authorized, 8,502,832
shares issued and outstanding 850,000 850,000
Additional paid-in capital 1,736,000 1,736,000
Accumulated other comprehensive income 182,000 165,000
Retained earnings 27,101,000 26,430,000
Treasury stock, 3,167,954 shares,
at cost (2,121,000) (2,109,000)
------------ ------------
Total Stockholders' Equity $27,847,000 $27,171,000
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY $28,635,000 $27,895,000
============ ============
GEORGE RISK INDUSTRIES, INC.
STATEMENT OF INCOME AND RETAINED EARNINGS
Three months Six months Three months Six months
ended ended ended ended
October 31, October 31, October 31, October 31,
2007 2007 2006 2006
---------------------------------------------------
Net Sales $ 3,007,000 $ 6,246,000 $ 3,631,000 $ 7,043,000
Less: cost of goods sold (1,483,000) (3,014,000) (1,716,000) (3,409,000)
------------ ------------ ------------ ------------
Gross Profit $ 1,524,000 $ 3,232,000 $ 1,915,000 $ 3,634,000
Operating Expenses:
General and
administrative 188,000 362,000 176,000 337,000
Selling 477,000 1,020,000 623,000 1,252,000
Engineering 24,000 44,000 19,000 34,000
Rent paid to related
parties 12,000 28,000 12,000 28,000
------------ ------------ ------------ ------------
Total Operating Expenses $ 701,000 $ 1,454,000 $ 830,000 $ 1,651,000
Income From Operations 823,000 1,778,000 1,085,000 1,983,000
Other Income (Expense)
Other 1,000 2,000 1,000 5,000
Dividend and interest
income 196,000 401,000 149,000 276,000
Gain (loss) on
investments 50,000 146,000 147,000 60,000
Gain (loss) on sale
of assets 15,000 15,000 0 0
------------ ------------ ------------ ------------
$ 262,000 $ 564,000 $ 297,000 $ 341,000
Income Before Provisions
for Income Tax 1,085,000 2,342,000 1,382,000 2,324,000
Provisions for Income Tax
Current expense (325,000) (723,000) (578,000) (970,000)
Deferred tax benefit
(expense) (5,000) (41,000) 32,000 26,000
------------ ------------ ------------ ------------
Total Income Tax Expense $ (330,000) $ (764,000) $ (546,000) $ (944,000)
Net Income $ 755,000 $ 1,578,000 $ 836,000 $ 1,380,000
Retained Earnings,
beginning of period $27,253,000 $26,430,000 $24,794,000 $22,250,000
Less: Cash Dividends on
Common Stock
($0.17 per share) (907,000) (907,000)
($0.15 per share) (801,000) (801,000)
Retained Earnings,
end of period $27,101,000 $27,101,000 $24,829,000 $24,829,000
Income Per Share of Common
Stock: (Note 6)
Basic $0.14 $0.30 $0.16 $0.26
Assuming Dilution $0.14 $0.29 $0.16 $0.26
Weighted Average Number of
Common Shares Outstanding:
Basic 5,334,878 5,335,272 5,342,179 5,342,887
Diluted 5,355,378 5,355,772 5,362,679 5,363,387
GEORGE RISK INDUSTRIES, INC.
STATEMENT OF COMPREHENSIVE INCOME
Three months Six months Three months Six months
ended ended ended ended
October 31, October 31, October 31, October 31,
2007 2007 2006 2006
----------------------------------------------------
Net Income $ 755,000 $ 1,578,000 $ 836,000 $ 1,380,000
------------ ------------ ------------ ------------
Other Comprehensive Income, net of tax
Unrealized gain (loss) on securities:
Unrealized holding
gains (losses) arising
during period 220,000 16,000 213,000 93,000
Reclassification adjustment
for (gains) losses included
in net income (50,000) (146,000) (147,000) 60,000
Income tax expense related
to other comprehensive
income 71,000 (54,000) 28,000 64,000
------------ ------------ ------------ ------------
Other Comprehensive
Income $ 241,000 $ (184,000) $ 94,000 $ 271,000
Comprehensive Income $ 996,000 $ 1,394,000 $ 930,000 $ 1,597,000
============ ============ ============ ============
GEORGE RISK INDUSTRIES, INC.
STATEMENT OF CASH FLOWS
Three months Six months Three months Six months
ended ended ended ended
October 31, October 31, October 31, October 31,
2007 2007 2006 2006
----------------------------------------------------
CASH FLOWS FROM OPERATING
ACTIVITIES:
Net Income $ 755,000 $ 1,578,000 $ 836,000 $ 1,380,000
Adjustments to reconcile
net income to net cash
provided by operating
activities:
Depreciation 45,000 86,000 46,000 89,000
(Gain) 1oss on sale of
investments (50,000) (146,000) (147,000) (60,000)
(Gain) loss on sale of
assets (15,000) (15,000) 0 0
Deferred income taxes 5,000 41,000 6,000 12,000
Changes in assets and
liabilities:
(Increase) decrease in:
Accounts receivable 91,000 194,000 (192,000) 88,000
Inventories (81,000) 48,000 (267,000) (395,000)
Prepaid expenses (6,000) 8,000 (1,000) 17,000
Income tax overpayment (638,000) (240,000) 0 0
Increase (decrease) in:
Accounts payable 47,000 (29,000) 34,000 25,000
Accrued expenses 97,000 33,000 102,000 11,000
Income tax payable 0 0 38,000 430,000
------------ ------------ ------------ ------------
Net cash provided by (used in)
operating activities $ 250,000 $ 1,558,000 $ 455,000 $ 1,597,000
CASH FLOWS FROM INVESTING
ACTIVITIES:
Other assets
manufactured 31,000 54,000 19,000 5,000
Proceeds from sale of
assets 17,000 17,000 0 0
(Purchase) of property
and equipment (86,000) (172,000) (42,000) (52,000)
Proceeds from sale of
marketable securities 680,000 2,123,000 1,488,000 3,279,000
(Purchase) of marketable
securities (986,000) (3,038,000) (2,743,000) (5,002,000)
(Loans) made to employees (20,000) (25,000) (3,000) (6,000)
Collections of loans to
employees 6,000 10,000 2,000 5,000
Purchase of treasury
stock (2,000) (12,000) (1,000) (40,000)
------------ ------------ ------------ ------------
Net cash provided by (used in)
investing activities $ (360,000) $(1,043,000) $(1,280,000) $(1,811,000)
CASH FLOWS FROM FINANCING
ACTIVITIES:
Principal payments on
long-term debt 0 0 0 (8,000)
Dividends paid (829,000) (829,000) (731,000) (731,000)
------------ ------------ ------------ ------------
Net cash provided by (used in)
financing activities $ (829,000) $ (829,000) $ (731,000) $ (739,000)
NET INCREASE (DECREASE) IN CASH
AND CASH EQUIVALENTS $ (939,000) $ (314,000) $(1,556,000) $ (953,000)
Cash and cash equivalents,
beginning of period $ 5,236,000 $ 4,611,000 $ 6,098,000 $ 5,495,000
------------ ------------ ------------ ------------
Cash and cash equivalents,
end of period $ 4,297,000 $ 4,297,000 $ 4,542,000 $ 4,542,000
============ ============ ============ ============
Supplemental Disclosure of Cash Flow Information
Cash payments for:
Income taxes $ 902,000 $ 902,000 $ 810,000 $ 810,000
Interest expense $ 0 $ 0 $ 0 $ 0
Cash receipts for:
Income taxes $ 0 $ 0 $ 270,000 $ 270,000
GEORGE RISK INDUSTRIES, INC.
NOTES TO FINANCIAL STATEMENTS
OCTOBER 31, 2007
Note 1 Unaudited Interim Financial Statements
The accompanying financial statements have been prepared in accordance
with the instructions for Form 10QSB and do not include all of the inform-
ation and footnotes required by generally accepted accounting principals for
complete financial statements. These financial statements should be read in
conjunction with the financial statements and notes contained in the com-
pany's annual report on Form 10KSB for the year ended April 30, 2007 with the
SEC. In the opinion of management, all adjustments, consisting only of nor-
mal recurring adjustments considered necessary for a fair presentation, have
been included. Operating results for any quarter are not necessarily in-
dicative of the results for any other quarter or for the full year.
Note 2 Marketable Securities
The Company has investments in publicly traded equity securities as well
as certain state and municipal debt securities. These securities are class-
ified as available-for-sale securities, and are reported at fair value.
Realized gains and losses are determined on the average cost basis, and are
included in the Company's statement of income. Unrealized gains and losses
are excluded from earnings and reported separately as a component of stock-
holder's equity. Dividend and interest income are accrued as earned.
Marketable equity securities and unrealized gains and losses consist of
the following as of October 31, 2007 and October 31, 2006:
Cost Basis $ 17,514,000 $ 15,595,000
Market Value 17,826,000 15,687,000
------------- -------------
Net Unrealized Gain (Loss) $ 312,000 $ 92,000
============= =============
Gross unrealized gain $ 948,000 $ 576,000
============= =============
Gross unrealized loss $ (636,000) $ (484,000)
============= =============
In accordance with SFAS 115, if the Company determines that a marketable
security has an other-than temporary decline in fair value, generally defined
as when the cost basis exceeds the fair value for approximately one year, the
Company will decrease the cost of the marketable security to the new fair
value and recognize a realized loss. The investments are periodically
evaluated to determine if impairment changes are required. As a result of
this standard, management recorded impairment losses of $2,000 for the quar-
ter ended October 31, 2007 and none for the quarter ended October 31, 2006.
Note 3 Inventories
At October 31, 2007 and October 31, 2006, respectively, inventories
consisted of the following:
Raw Materials $ 1,823,000 $ 1,770,000
Work in Process 894,000 536,000
Finished Goods 399,000 361,000
Warehouse in England 0 68,000
------------- -------------
$ 3,116,000 $ 2,735,000
Less: allowance for obsolete
inventory (105,000) (70,000)
------------- -------------
Net Inventories $ 3,011,000 $ 2,665,000
============= =============
Note 4 Business Segments
The following is financial information relating to industry segments:
For the quarter ended
October 31,
2007 2006
----------------------------
Net revenue:
Pool alarm products $ 130,000 $ 376,000
Keyboard products 59,000 137,000
Security alarm and other products 2,818,000 3,118,000
------------- -------------
Total net revenue $ 3,007,000 $ 3,631,000
Income from operations:
Pool alarm products $ 35,000 $ 113,000
Keyboard products 16,000 40,000
Security alarm and other products 772,000 932,000
------------- -------------
Total income from operations $ 823,000 $ 1,085,000
Identifiable assets:
Pool alarm products $ 224,000 $ 315,000
Keyboard products 191,000 235,000
Security alarm and other products 5,134,000 4,889,000
Corporate general 23,086,000 21,008,000
------------- -------------
Total assets $ 28,635,000 $ 26,447,000
Depreciation and amortization:
Pool alarm products $ 3,000 $ 3,000
Keyboard products 0 0
Security alarm and other products 33,000 33,000
Corporate general 9,000 10,000
------------- -------------
Total depreciation and amortization $ 45,000 $ 46,000
Capital expenditures:
Pool alarm products $ 1,000 $ 0
Keyboard products 0 0
Security alarm and other products 58,000 42,000
Corporate general 27,000 0
------------- -------------
Total capital expenditures $ 86,000 $ 42,000
Note 5 Revenue Recognition
Revenue is recognized when risks and benefits in ownership are trans-
ferred, which normally occurs at the time of the shipment of products.
Note 6 Earnings per Share
Basic and diluted earning per share, assuming convertible preferred
stock was converted for each period presented, are:
For the three months ended October 31, 2007
-------------------------------------------
Income Shares Per-share
(Numerator) (Denominator) Amount
----------- ------------- -----------
Net Income $ 755,000
===========
Basic EPS $ 755,000 5,334,878 $ 0.14
Effect of dilutive securities:
Convertible preferred stock 0 20,500
----------- ------------- -----------
Diluted EPS $ 755,000 5,355,378 $ 0.14
For the six months ended October 31, 2007
-------------------------------------------
Income Shares Per-share
(Numerator) (Denominator) Amount
----------- ------------- -----------
Net Income $1,578,000
===========
Basic EPS $1,578,000 5,335,272 $ 0.30
Effect of dilutive securities:
Convertible preferred stock 0 20,500
----------- ------------- -----------
Diluted EPS $1,578,000 5,355,772 $ 0.29
For the three months ended October 31, 2006
-------------------------------------------
Income Shares Per-share
(Numerator) (Denominator) Amount
----------- ------------- -----------
Net Income $ 836,000
===========
Basic EPS $ 836,000 5,342,179 $ 0.16
Effect of dilutive securities:
Convertible preferred stock 0 20,500
----------- ------------- -----------
Diluted EPS $ 836,000 5,362,679 $ 0.16
For the six months ended October 31, 2005
-------------------------------------------
Income Shares Per-share
(Numerator) (Denominator) Amount
----------- ------------- -----------
Net Income $1,380,000
===========
Basic EPS $1,380,000 5,342,887 $ 0.26
Effect of dilutive securities:
Convertible preferred stock 0 20,500
----------- ------------- -----------
Diluted EPS $1,380,000 5,363,387 $ 0.26
Note 7 Retirement Benefit Plan
On January 1, 1998, the Company adopted the George Risk Industries, Inc.
Retirement Savings Plan (the "Plan"). The Plan is a defined contribution
savings plan designed to provide retirement income to eligible employees of
the corporation. The Plan is intended to be qualified under Section 401(k)
of the Internal Revenue Code of 1986, as amended. Matching contributions by
the Company of approximately $3,000 and $4,000 were paid during each quarter
ending October 31, 2007 and 2006, respectively. Likewise, the Company paid
matching contributions of approximately $7,000 and $8,000 during each six-
month period ending October 31, 2007 and 2006, respectively. There were no
discretionary contributions paid during either the quarters or six-month
periods ending October 31, 2007 and 2006, respectively.
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 con-
densed consolidated financial statements, and with the George Risk Indus-
tries' audited financial statements and discussion for the fiscal year ended
April 30, 2007.
Net cash decreased $939,000 during the quarter ended October 31, 2007 as com-
pared to a decrease of $1,556,000 during the corresponding quarter last year.
As for the year-to-date numbers, net cash decreased $314,000 for the six
months ended October 31, 2007, while, for the same period last year, net cash
decreased $953,000. Accounts receivable decreased $91,000 during the current
quarter as compared to a $192,000 increase for the corresponding quarter last
year. The year-to-date figures show a decrease of $194,000 for the current
six months and an $88,000 decrease for the same period last year. At Oct-
ober 31, 2007, 76.4% of the receivables were considered current (less than 45
days) and 5.4% of the total were over 90 days past due. Inventories in-
creased $81,000 during the current quarter as compared to a $267,000 increase
last year. The year-to-date numbers show the inventory decreased $48,000 for
the current year, while it increased $395,000 for the same period last year.
The main reasons for the increase in cash expenditures towards inventory is
that the actual cost of raw materials is more than it was for the same period
last year. The wire that we purchase for the leads on our security switches
is made with copper. And the raw plastic we purchase to make our molded
casings has also risen substantially. At the quarter ended October 31, 2007,
there was a $6,000 increase in prepaid expenses as compared to an increase of
$1,000 for the corresponding quarter the year before. Changes in prepaid
expenses in regards to cash flow decreased by $8,000 and $17,000 for the six-
month periods ending October 31, 2007 and 2006, respectively.
At the quarter ended October 31, 2007, accounts payable increased $47,000 as
compared to a $34,000 increase for the same quarter the year before. As for
year-to-date numbers, there was a $29,000 decrease for the six months ended
October 31, 2007, and a $25,000 increase for the same period ended Oct-
ober 31, 2006. Accrued payroll and related expenses increased by $97,000 for
the quarter ended October 31, 2007, and these expenses increased $102,000 for
the corresponding quarter the year before. As for the six-month period end-
ing October 31, 2007, accrued expenses increased $33,000 and also increased
by $11,000 for the same period last year. Income tax payable increased
$638,000 for the quarter ended October 31, 2007, as it also increased $38,000
for the quarter ended October 31, 2006. For the six months ended October 31,
2007, income tax payable increased $240,000, as it increased $430,000 for the
corresponding period a year ago. The main reason for the big increase during
the current quarter is that the Company had not received its income tax re-
funds from the prior fiscal year as of October 31, 2007. Both the federal
and state income tax refunds have been received prior to the filing of this
report.
As for the Company's investing activities, there have not been any purchases
or sales out of the ordinary during the current quarter. The Company has
purchased a couple of fixed assets and continues to put money into buying
more marketable securities. Also, the Company issued a note receivable for
$17,500 to an employee who purchased a vehicle from the company. As for the
year-to-date figures, both fiscal 2008 and 2007 are showing normal activity.
One piece of machinery that should be mentioned that was purchased during the
six months ending October 31, 2007 is called a Pick and Place machine. This
machine aids us in the production of our pool alarms. The pool alarm has
been redesigned and this piece of equipment allows us to manufacture the new
pool alarms. By redesigning the pool alarm, the Company is able to use less
parts and labor on these products. Additionally, the Company continues to
put money into the marketable securities. Much of this has been gone towards
the purchase of municipal bonds. Most brokers and analysts believe that
interest rates will be lowered in light of the problems that the housing and
mortgage industries are currently facing. The idea in purchasing bonds at
this time is that the Company can lock-in the higher interest rates, before
the rates are reduced. We continuing the use of our "money manager"
accounts. By doing this, the Company gives an independent third party firm,
who are experts in this field, permission to buy and sell stocks at will.
The Company does not pay commission for each transaction. Instead, a quar-
terly service fee is paid based on the value of the assets. Approximately
23.5% of the Company's marketable securities are invested in the money
manager accounts. Furthermore, the Company continues to purchase back common
stock when the opportunity arises. For the quarter ended October 31, 2007,
the Company purchased $2,000 worth of treasury stock and $1,000 worth of
treasury stock for the quarter ended October 31, 2006. As for the year to
date figures, $12,000 has been purchased for the six months ended October 31,
2007, and $40,000 was bought back for the six months ended October 31, 2006.
We have been actively searching for stockholders that have been "lost" over
the years. The payment of dividends over the last four fiscal years has also
prompted many stockholders and/or their relatives and descendants to sell
back their stock to the Company.
Cash flows from financing activities decreased by $829,000 for the three and
six months ending October 31, 2007. That figure consists of the payment of
dividends during the second quarter. The company declared a dividend of
$0.17 per share of common stock on September 30, 2007 and these dividends
were paid by October 31, 2007. As for the prior year numbers, net cash used
in financing activities was $731,000 for the quarter ending October 31, 2006
and $739,000 for the six months ending October 31, 2006. A dividend of $0.15
per common share was declared and paid during the second fiscal quarter last
year.
The following is a list of ratios to help analyze George Risk Industries'
performance:
For the quarter ended October 31,
2007 2006
---------------------------------
Working capital $ 26,703,000 $ 24,466,000
Current ratio 38.823 29.284
Quick ratio 33.786 25.756
Net sales were $3,007,000 for the quarter ended October 31, 2007, which is a
17.2% decrease from the corresponding quarter last year. Year-to-date net
sales were $6,246,000 at October 31, 2007, which is an 11.37% decrease from
the same period last year. The Company is tied to the housing industry and
with that industry not performing well over the last several months, we are
seeing a decrease in our sales also. Cost of goods sold was 49.3% of net
sales for the quarter ended October 31, 2007 and 47.3% for the same quarter
last year. Year-to-date cost of goods sold percentages were 48.3% for the
current six months and 48.4% for the corresponding six months last year.
Having relatively the same percentage of cost of goods sold from period to
period shows that we keep our costs in line. Our goal, as always, is to have
a cost of goods sold percentage somewhere between 45% and 50%. As a whole,
our cost of materials and direct labor fluctuate in proportion to how our
sales vary.
Operating expenses were 23.3% of net sales for the quarter ended October 31,
2007 as compared to 22.9 % for the corresponding quarter last year. Year-to-
date operating expenses were 23.3% of net sales for the six months ended Oct-
ober 31, 2007, while they were 23.4% for the same period last year. Income
from operations for the quarter ended October 31, 2007 was at $823,000, which
is a 24.15% decrease from the corresponding quarter last year, which had in-
come from operations of $1,085,000. Income from operations for the six
months ended October 31, 2007 was at $1,778,000, which is a 10.34% decrease
from the corresponding six months last year, which had income from operations
of $1,983,000.
Other income and expenses showed gains of $262,000 and $564,000 for the quar-
ter and six months ended October 31, 2007, respectively. The other income
and expense numbers for last year also showed gains of $297,000 for the quar-
ter and $341,000 for the six months ending October 31, 2006. Dividend and
interest income is up 31.5% for the current quarter and is up 45.3% for the
current six-month period when comparing to the same time periods last year.
Over the last several years, we have reorganized the way we are investing by
using money manager accounts. These investment accounts are overseen by
money managers affiliated with our brokerage firms. This has seemed to make
a positive difference in not accumulating big losses like we have let happen
in the past. Net income for the quarter ended October 31, 2007 was at
$755,000, a 9.7% decrease from the corresponding quarter last year, which
showed net income of $836,000. Net income for the six months ended
October 31, 2007 was $1,578,000, a 14.3% increase from the same period last
year. Net income for the six months ended October 31, 2006 was $1,380,000.
Earnings per common share for the quarter ended October 31, 2007 were $0.14
per share and $0.30 per share for the year-to-date numbers. EPS for the
quarter and six months ended October 31, 2006 were $0.16 per share and $0.26
per share, respectively.
As mentioned previously in this discussion, a dividend of $0.17 per common
share was declared during the current quarter ended October 31, 2007. The
dividend was paid to common stockholders of record as of September 30, 2007
and the payment date was October 31, 2007. This is the fourth year in a row
that the Company has paid a dividend to the stockholders and we hope to con-
tinue this trend in the future. The reason that there is still a dividend
payable on the books as of October 31, 2007 is that we did not have all the
information that was needed in order to process checks to some stockholders.
Once this information is obtained, a dividend check is sent out if they were
a stockholder as of the date of record.
George Risk Industries does have three distinct business segments, security
alarm products (and other items), keyboard products, and pool alarm products
that are subject to disclosure under SFAS No. 131. See the notes to the
financial statements in order to examine the segments.
Now, here is an update on the progress of some of the Company's new products.
Management has put the development of the new closed loop glass break sensor
(pt # GB-550) at the top of the priority list. This is due to feedback from
our distributors that our competitor's product, which is manufactured over-
seas, is indefinitely unavailable. We have started shipping this product out
as of the first week in November 2007 and sales have been strong.
The sales department has received customer requests for the E-Z Duct single
gang box to also be molded in red plastic, in addition to the standard white
that we have been selling previously. Fire system pull stations fit per-
fectly in these boxes. This process is currently being completed.
The Current Controller (pt # CC-01) has been redesigned to handle more
amperage and recently received UL approval. This change was done in response
to customer input for ballast lighting installations. The CC-01 is used to
automatically turn on door or cabinet lights when the door is opened.
Engineering continues work on the Pump Guard, a water value controller, and
other wireless sensors. Specific research and development is being done for
the wireless sensor market in Iceland.
Management is always open to the possibility to acquire a business that would
complement our existing operations. This would require no outside financing.
The intent is to utilize the equipment, marketing techniques and established
customers to increase sales and profits.
There are no known seasonal trends with any of our products, since we sell to
distributors and OEM manufacturers. The products are tied to the housing
industry and will fluctuate with building trends.
Item 3 Controls and Procedures
(a) Information required by Item 307
Our Chief Executive Officer and our Chief Financial Officer, after evaluating
the effectiveness of the Company's "disclosure controls and procedures" (as
defined in the Securities Exchange Act of 1934 (Exchange Act) Rules 13a-15(e)
or 15d-15(e)) as of the end of the period covered by this quarterly report,
have concluded that our disclosure controls and procedures are effective
based on their evaluation of these controls and procedures required by para-
graph (b) of Exchange Act Rules 13a-15 or 15d-15.
(b) Information required by Item 308
This disclosure is not yet required.
GEORGE RISK INDUSTRIES, INC.
Part II. OTHER INFORMATION
Item 1. Legal Proceedings
Not applicable
Item 2. Changes in Securities
Not applicable.
Item 3. Defaults upon Senior Securities
Not applicable
Item 4. Submission of Matters to a Vote of Securities
Not applicable
Item 5. Other Information
Not applicable
Item 6. Exhibits and Reports on Form 8-K
A. Exhibits
31. Certifications pursuant to Rule 13a-14(a)
31.1 Certification of the Chief Executive Officer
31.2 Certification of the Chief Financial Officer
32. Certifications pursuant to 18 U.S.C. 1350
32.1 Certification of the Chief Executive Officer
32.2 Certification of the Chief Financial Officer
B. Reports on Form 8-K
No 8-K reports were filed during the quarter ended October 31, 2007.
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 12-14-2007 By: /s/ Kenneth R. Risk
Kenneth R. Risk
President and Chairman of the Board
Date 12-14-2007 By: /s/ Stephanie M. Risk
Stephanie M. Risk
Chief Financial Officer and Controller