Attached files
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, DC 20549
FORM 10-Q
(Mark One)
[ X ] Quarterly report under Section 13 or 15(d) of the Securities Ex-
change Act of 1934
For the quarter ended July 31, 2011
[ ] 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)
(308) 235-4645
(Registrant's telephone number, including area code)
Check whether the issuer (1) filed all reports 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 [ ]
Indicate by check mark whether the registrant is a shell company (as defined
in Rule 12b-2 of the Exchange Act). Yes [ ] No [ X ]
APPLICABLE ONLY TO CORPORATE ISSUERS
The number of shares of the Registrant's Common Stock outstanding, as of
September 13, 2011 was 5,047,370.
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-month period ended
July 31, 2011, are attached hereto.
GEORGE RISK INDUSTRIES, INC.
BALANCE SHEETS
July 31, April 30,
2011 2011
------------ ------------
(unaudited)
ASSETS
Current Assets:
Cash and cash equivalents $ 5,518,000 $ 5,254,000
Investments and securities 19,377,000 19,512,000
Accounts receivable:
Trade, net of $27,511 and $5,053
doubtful account allowance 1,958,000 1,574,000
Other 1,000 1,000
Note receivable, current 6,000 5,000
Inventories 2,089,000 1,854,000
Prepaid expenses 153,000 151,000
Deferred current income taxes 127,000 166,000
------------ ------------
Total Current Assets $29,229,000 $28,517,000
Property and Equipment, net, at cost 771,000 639,000
Other Assets
Investment in Limited Land Partnership,
at cost 218,000 218,000
Projects in process 69,000 213,000
Note receivable -- 1,000
------------ ------------
Total Other Assets $ 287,000 $ 432,000
TOTAL ASSETS $30,287,000 $29,588,000
============ ============
GEORGE RISK INDUSTRIES, INC.
BALANCE SHEETS
July 31, April 30,
2011 2011
------------ ------------
(unaudited)
LIABILITIES AND STOCKHOLDERS' EQUITY
Current Liabilities
Accounts payable, trade $ 90,000 $ 128,000
Dividends payable 483,000 483,000
Accrued expenses:
Payroll and related expenses 270,000 212,000
Property taxes 2,000 --
Income tax payable 326,000 36,000
------------ ------------
Total Current Liabilities $ 1,171,000 $ 859,000
Long-Term Liabilities
Aircraft ownership deposit payable 5,000 5,000
Deferred income taxes 61,000 53,000
------------ ------------
Total Long-Term Liabilities $ 66,000 $ 58,000
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 (112,000) 281,000
Retained earnings 29,907,000 29,115,000
Treasury stock, 3,455,362 and 3,451,857
shares, at cost (3,430,000) (3,410,000)
------------ ------------
Total Stockholders' Equity $29,050,000 $28,671,000
TOTAL LIABILITES AND STOCKHOLDERS' EQUITY $30,287,000 $29,588,000
============ ============
GEORGE RISK INDUSTRIES, INC.
INCOME STATEMENTS
FOR THE THREE MONTHS ENDED JULY 31, 2011 AND 2010
July 31,
2011 2010
------------ ------------
(unaudited) (unaudited)
Net Sales $ 2,598,000 $ 2,007,000
Less: Cost of Goods Sold (1,191,000) (1,229,000)
------------ ------------
Gross Profit $ 1,407,000 $ 778,000
Operating Expenses:
General and Administrative 206,000 181,000
Sales 341,000 391,000
Engineering 16,000 17,000
Rent Paid to Related Parties 11,000 11,000
------------ ------------
Total Operating Expenses $ 574,000 $ 600,000
Income From Operations 833,000 178,000
Other Income (Expense)
Other Income 8,000 2,000
Dividend and Interest Income 192,000 182,000
Gain (Loss) on Sale of Investments 379,000 (56,000)
------------ ------------
$ 579,000 $ 128,000
Income Before Provisions for Income Taxes 1,412,000 306,000
Provisions for Income Taxes
Current Expense 292,000 89,000
Deferred Tax Expense 328,000 (32,000)
------------ ------------
Total Income Tax Expense $ 620,000 $ 57,000
Net Income $ 792,000 $ 249,000
Basic and Diluted Earnings Per Share of
Common Stock $ 0.16 $ 0.05
Weighted Average Number of Common Shares
Outstanding 5,048,365 5,062,892
GEORGE RISK INDUSTRIES, INC.
STATEMENT OF COMPREHENSIVE INCOME
FOR THE THREE MONTHS ENDED
July 31,
2011 2010
---------------------------
(unaudited) (unaudited)
Net Income $ 792,000 $ 249,000
------------ ------------
Other Comprehensive Income, net of tax
Unrealized gain (loss) on securities:
Unrealized holding gains (losses)
arising during period (564,000) (355,000)
Reclassification adjustment for gains
(losses) included in net income (114,000) 85,000
Income tax expense related to other
comprehensive income 283,000 113,000
------------ ------------
Other Comprehensive Income (Loss) $ (395,000) $ (157,000)
Comprehensive Income (Loss) $ 397,000 $ 92,000
============ ============
GEORGE RISK INDUSTRIES, INC.
STATEMENT OF CASH FLOWS
For the three months
ended July 31,
2011 2010
---------------------------
(unaudited) (unaudited)
CASH FLOWS FROM OPERATING ACTIVITIES:
Net Income $ 792,000 $ 249,000
Adjustments to reconcile net income to net
cash provided by operating activities:
Depreciation 37,000 37,000
(Gain) loss on sale of investments (379,000) 56,000
Reserve for bad debts 21,000 5,000
Reserve for obsolete inventory 8,000 31,000
Deferred income taxes 328,000 (31,000)
Changes in assets and liabilities:
(Increase) decrease in:
Accounts receivable (406,000) 79,000
Inventories (243,000) 236,000
Prepaid expenses (2,000) 56,000
Income tax overpayment -- 88,000
Increase (decrease) in:
Accounts payable (37,000) 1,000
Accrued expenses 60,000 62,000
Income tax payable 290,000 --
------------ ------------
Net cash provided by (used in) operating
activities $ 469,000 $ 869,000
CASH FLOWS FROM INVESTING ACTIVITIES:
Other assets manufactured & purchased 145,000 (31,000)
Proceeds from receipt of insurance claim -- 132,000
(Purchase) of property and equipment (169,000) (17,000)
Proceeds from sale of marketable securities 8,000 1,554,000
(Purchase) of marketable securities (169,000) (419,000)
(Loans) made to employees (2,000) --
Collection of loans to employees 2,000 3,000
(Purchase) of treasury stock (20,000) (20,000)
------------ ------------
Net cash provided by (used in) investing
activities $ (205,000) $ 1,202,000
CASH FLOWS FROM FINANCING ACTIVITIES:
Net cash provided by (used in) financing
activities $ -- $ --
NET INCREASE (DECREASE) IN CASH AND CASH
EQUIVALENTS $ 264,000 $ 2,071,000
Cash and cash equivalents, beginning of
period $ 5,254,000 $ 3,641,000
------------ ------------
Cash and cash equivalents, end of period $ 5,518,000 $ 5,712,000
============ ============
Supplemental Disclosure of Cash Flow
Information
Cash payments for:
Income taxes $0 $0
Interest expense $0 $0
GEORGE RISK INDUSTRIES, INC.
NOTES TO FINANCIAL STATEMENTS
JULY 31, 2011
Note 1 Unaudited Interim Financial Statements
The accompanying financial statements have been prepared in accordance
with the instructions for Form 10-Q and do not include all of the inform-
ation and footnotes required by generally accepted accounting principles for
complete financial statements. It is suggested that these condensed finan-
cial statements be read in conjunction with the financial statements and
notes thereto included in the Company's April 30, 2011 annual report on Form
10-K. In the opinion of management, all adjustments, consisting only of
normal recurring adjustments considered necessary for a fair presentation,
have been included. Operating results for any quarter are not necessarily
indicative 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.
Refer to Note 7, Fair Value Measurements, for additional information on the
fair value measurements for all assets and liabilities, including invest-
ments, that are measured at fair value in these financial statements.
Available-for-sale investments in debt securities mature between August 2011
and June 2042. The Company uses the average cost method to determine the
cost of securities sold and the amount reclassified out of accumulated other
comprehensive income into earnings. Unrealized gains and losses are excluded
from earnings and reported separately as a component of stockholder's equity.
Dividend and interest income are accrued as earned.
As of July 31, 2011, investments available-for-sale consisted of the
following:
Gross Gross
Cost Unrealized Unrealized Fair
Basis Gains Losses Value
------------ ------------ ------------ ------------
Municipal bonds $ 9,322,000 $ 144,000 $ (107,000) $ 9,359,000
Corporate bonds $ 81,000 $ 2,000 $ -- $ 83,000
Equity securities $ 9,169,000 $ 294,000 $ (526,000) $ 8,937,000
Money markets/CDs $ 998,000 $ -- $ -- $ 998,000
------------ ------------ ------------ ------------
Total $19,570,000 $ 440,000 $ (633,000) $19,377,000
In accordance with US GAAP, the Company evaluates all marketable
securities for other-than temporary declines in fair value, which are defined
as when the cost basis exceeds the fair value for approximately one year.
The Company also evaluates the nature of the investment, cause of impairment
and number of investments that are in an unrealized position. When an other-
than-temporary decline is identified, the Company will decrease the cost of
the marketable security to the new fair value and recognize a real loss. The
investments are periodically evaluated to determine if impairment changes are
required. As a result of this standard, management did not record any
impairment losses for the quarter ended July 31, 2011 and recorded impairment
losses of $7,000 for the quarter ended July 31, 2010.
The following table shows the investments with unrealized losses that
are not deemed to be other-than-temporarily impaired, aggregated by invest-
ment category and length of time that individual securities have been in a
continuous unrealized loss position, at July 31, 2011.
Less than 12 months 12 months or greater Total
----------------------- --------------------- ---------------------
Fair Unrealized Fair Unrealized Fair Unrealized
Value Loss Value Loss Value Loss
...........................................................................
Municipal bonds
$ 728,000 $ (15,000) $3,545,000 $ (92,000) $ 4,273,000 $ (107,000)
Equity securities
$1,835,000 $(112,000) $2,044,000 $(292,000) $ 3,879,000 $ (404,000)
----------- ---------- ----------- ---------- ------------ ------------
Total
$2,563,000 $(127,000) $5,589,000 $(384,000) $ 8,152,000 $ (511,000)
Municipal Bonds
---------------
The unrealized losses on the Company's investments in municipal bonds were
caused by interest rate increases. The contractual terms of these invest-
ments do not permit the issuer to settle the securities at a price less than
the amortized cost of the investment. Because the Company has the ability to
hold these investments until a recovery of fair value, which may be maturity,
the Company does not consider these investments to be other-than-temporarily
impaired at July 31, 2011
Marketable Equity Securities
----------------------------
The Company's investments in marketable equity securities consist of a wide
variety of companies. Investments in these companies include growth, growth
income, and foreign investment objectives. Management has evaluated the in-
dividual holdings, and because of the recent decline in the stock market,
does not consider these investments to be other-than-temporarily impaired at
July 31, 2011.
Note 3 Inventories
Inventories at July 31, 2011, consisted of the following:
Raw Materials $ 1,517,000
Work in Process 577,000
Finished Goods 190,000
------------
$ 2,284,000
Less: allowance for obsolete inventory (195,000)
------------
Net Inventories $ 2,089,000
============
Note 4 Business Segments
The following is financial information relating to industry segments:
For the quarter ended
July 31,
2011 2010
---------------------------
Net revenue:
Security alarm products 2,279,000 1,797,000
Other products 319,000 210,000
------------ ------------
Total net revenue $ 2,598,000 $ 2,007,000
Income from operations:
Security alarm products 731,000 159,000
Other products 102,000 19,000
------------ ------------
Total income from operations $ 833,000 $ 178,000
Identifiable assets:
Security alarm products 3,495,000 2,485,000
Other products 1,201,000 916,000
Corporate general 25,591,000 24,923,000
------------ ------------
Total assets $30,287,000 $28,324,000
Depreciation and amortization:
Security alarm products 6,000 6,000
Other products 25,000 24,000
Corporate general 6,000 7,000
------------ ------------
Total depreciation and amortization $ 37,000 $ 37,000
Capital expenditures:
Security alarm products -- --
Other products 169,000 5,000
Corporate general -- 12,000
------------ ------------
Total capital expenditures $ 169,000 $ 17,000
Note 5 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 July 31, 2011
----------------------------------------
Income Shares Per-share
(Numerator) (Denominator) Amount
------------- -------------- ---------
Net Income $ 792,000
=============
Basic EPS $ 792,000 5,048,365 $ 0.1569
Effect of dilutive securities:
Convertible preferred stock -- 20,500 (0.0007)
------------- -------------- ----------
Diluted EPS $ 792,000 5,068,865 $ 0.1562
For the three months ended July 31, 2010
----------------------------------------
Income Shares Per-share
(Numerator) (Denominator) Amount
------------- -------------- ---------
Net Income $ 249,000
=============
Basic EPS $ 249,000 5,062,892 $ 0.0492
Effect of dilutive securities:
Convertible preferred stock -- 20,500 (0.0002)
------------- -------------- ----------
Diluted EPS $ 249,000 5,083,392 $ 0.0490
Note 6 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 were paid during the quarters ending
July 31, 2011 and 2010, respectively. There were no discretionary con-
tributions paid during the quarters ending July 31, 2011 and 2010, re-
spectively.
Note 7 Fair Value Measurements
Generally accepted accounting principles in the United States of America
(US GAAP) defines fair value as the price that would be received from selling
an asset or paid to transfer a liability in an orderly transaction between
market participants at the measurement date. When determining the fair value
measurements for assets and liabilities, which are required to be recorded at
fair value, we consider the principal or most advantageous market in which we
would transact and the market-based risk measurements or assumptions that
market participants would use in pricing the asset or liability, such as in-
herent risk, transfer restrictions, and credit risk.
US GAAP establishes a fair value hierarchy that prioritizes the inputs
to valuation techniques used to measure fair value. The hierarchy gives the
highest priority to unadjusted quoted prices in active markets for identical
assets or liabilities (level 1 measurements) and the lowest priority to un-
observable inputs (level 3 measurements). The levels of the fair value
hierarchy under US GAAP are described below:
Level 1 - Valuation is based upon quoted prices for identical in-
struments traded in active markets.
Level 2 - Valuation is based upon quoted prices for similar in-
struments in active markets, quoted prices for identical
or similar instruments in markets that are not active,
and model-based valuation techniques for which all sig-
nificant assumptions are observable in the market.
Level 3 - Valuation is generated from model-based techniques that
use significant assumptions not observable in the market.
These unobservable assumptions reflect our own estimates
of assumptions that market participants would use in
pricing the asset or liability. Valuation techniques
include use of option pricing models, discounted cash
flow models and similar techniques.
Marketable Securities
---------------------
As of July 31, 2011, our investments consisted of publicly traded equity
securities as well as certain state and municipal debt securities. Our
marketable securities are valued using third-party broker statements. The
value of the majority of securities is derived from quoted market inform-
ation. The inputs to the valuation are generally classified as Level 1 given
the active market for these securities, however, if an active market does not
exist, the inputs are recorded at a lower level in the fair value hierarchy.
Fair Value Hierarchy
--------------------
The following tables set forth our assets and liabilities measured at fair
value on a recurring basis and a non-recurring basis by level within the fair
value hierarchy. As required by US GAAP, assets and liabilities are
classified in their entirety based on the lowest level of input that is
significant to the fair value measurement.
Assets Measured at Fair Value on a Recurring Basis
as of July 31, 2011
---------------------------------------------------
Level 1 Level 2 Level 3 Total
------- ------- ------- -------
Assets:
Marketable
Securities $10,018,000 $ 9,359,000 $ -- $19,377,000
----------- ----------- ----------- -----------
Total fair value of
assets measured on a
recurring basis $10,018,000 $ 9,359,000 $ -- $19,377,000
=========== =========== =========== ===========
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 con-
densed consolidated financial statements, and with the Company's audited
financial statements and discussion for the fiscal year ended April 30, 2011.
Liquidity and capital resources
~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~
Operating
---------
Net cash increased $264,000 during the quarter ended July 31, 2011 as com-
pared to an increase of $2,071,000 during the corresponding quarter last
year. Accounts receivable increased $406,000 for the quarter ending July 31,
2011 compared with a $79,000 decrease for the same quarter last year. The in-
crease in cash flow for accounts receivable for the current period is a re-
flection of increased sales. At the quarter ended July 31, 2011, 63.69% of
the receivables are considered current (less than 45 days) while 4.95% of the
total are over 90 days past due. This is in comparison to having 78.15% of
the receivables considered current and 4.06% over 90 days past due at July
31, 2010. Inventories increased $243,000 during the current quarter as com-
pared to a $236,000 decrease last year. Management has had to increase its
raw material purchases as a result of the increase in sales and the price of
raw materials keeps rising. At the quarter ended July 31, 2011 there was a
$2,000 increase in prepaid expenses, while at July 31, 2010, there was a
$56,000 decrease. There was not an income tax overpayment for the quarter
ended July 31, 2011, while there was an $88,000 decrease in income tax over-
payment for the corresponding quarter last year. Management paid income tax
estimates based on prior year taxable income.
At the quarter ended July 31, 2011, accounts payable shows a decrease of
$37,000 as compared to a decrease of $1,000 for the same quarter the year
before. The change in cash in regards to accounts payable can vary. It
really depends on the time of the month the invoices are due, since the com-
pany pays all its invoices within the terms. Accrued expenses increased
$60,000 for the current quarter as compared to a $62,000 increase for the
quarter ended July 31, 2010. The current increase is due to increased em-
ployment and more payroll and commission dollars. Income tax payable in-
creased $290,000 for the quarter ended July 31, 2011, while there was no
payable on the books for the corresponding quarter the same year.
Investing
---------
As for our investment activities, the Company has spent approximately
$169,000 on acquisitions of property and equipment for the current fiscal
quarter. In comparison with the corresponding quarter last year, there was
activity of $17,000. The $169,000 represents an in-house mold, previously a
project in process, which was completed during the quarter. Additionally,
the Company continues to purchase marketable securities, which include
municipal bonds and quality stocks. Cash spent on purchases of marketable
securities for the quarter ended July 31, 2011 was $169,000 compared with
$419,000 spent during the quarter ended July 31, 2010. We continue to use
"money manager" accounts for most stock transactions. 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 pays a quarterly
service fee based on the value of the investments. Furthermore, the Company
continues to purchase back common stock when the opportunity arises. For the
quarter ended July 31, 2011, the Company purchased $20,000 worth of treasury
stock and also $20,000 worth of treasury stock for the quarter ended July 31,
2010. We have been actively searching for stockholders that have been "lost"
over the years. The payment of dividends over the last seven fiscal years
has also prompted many stockholders and/or their relatives and descendants to
sell back their stock to the Company.
The following is a list of ratios to help analyze George Risk Industries'
performance:
For the quarter ended
July 31,
2011 2010
---------------------------
Working capital $ 28,058,000 $ 26,673,000
Current ratio 24.961 38.410
Quick ratio 22.932 35.160
Results of Operations
~~~~~~~~~~~~~~~~~~~~~
Net sales were $2,598,000 for the quarter ended July 31, 2011, which is an
increase of 29.44% from the corresponding quarter last year. Net sales for
the quarter ended July 31, 2010 were $2,007,000. Even though the majority of
the Company's products are tied to the housing market, the increase in sales
is a result of the Company focusing on gaining market share in the industry.
The Company is accomplishing this by having excellent customer service and
being willing to make many customized parts. Cost of goods sold was 45.84%
of net sales for the quarter ended July 31, 2011 and 61.24% for the quarter
ended July 31, 2010. Management continues to keep labor and other manufac-
turing expenses down and has reached the desired cost of goods sold percent-
age range of 45 to 50%. Also, management raised prices at January 1, 2011.
This was the first overall price increase to take place in almost 10 years.
The price increase helps decrease the cost of goods sold percentage.
Operating expenses were 22.1% of net sales for the quarter ended July 31,
2011 as compared to 29.9% for the corresponding quarter last year. Manage-
ment's goal is to always keep the operating expenses around 30% or less of
net sales, as management has been able to achieve over the years. Income from
operations for the quarter ended July 31, 2011 was at $833,000, which is a
367.98% increase from the corresponding quarter last year, which had income
from operations of $178,000.
Other income and expenses showed a $579,000 gain for the quarter ended July
31, 2011 as compared to having a $128,000 gain for the quarter ended July 31,
2010. The main reason for the bigger gains in other income for the current
quarter is that we had a $379,000 realized gain on investments for the
quarter as compared to a $56,000 realized loss for the corresponding quarter
last year. In turn, net income for the quarter ended July 31, 2011 was at
$792,000, a 218.07% increase from the corresponding quarter last year, which
showed net income of $249,000. Earnings per share for the quarter ended
July 31, 2011 were $0.16 per common share and $0.05 per common share for the
quarter ended July 31, 2010.
New Product Development
~~~~~~~~~~~~~~~~~~~~~~~
Mold design has been completed and production started on our 700 Series
switches. This is a miniature surface mount contact switch with terminal
blocks. This has been requested by customers for some time and will be
GRI's smallest surface mount terminal switch. Sales have been strong with
nearly 13,000 sold since May 2011.
Splice and corner connecting pieces for the E-Z Duct Quarter Round Raceway
are currently being molded. We are also working on a plastic housing for our
very popular flat magnet (MF-875).
Engineering has nearly completed work on a garage door alert (DM-1) which
will monitor when the garage door has been left open and will automatically
shut the door - either by a timed delay after the garage door has been opened
or closing at a set time every day. We believe this will be a good up sell
as a lot of home burglaries gain access through a garage door that is left
open or unlocked.
Engineering is completing new water sensors (WM2600-10 & WM-10P) made from a
flexible cord. This design will contain multiple sensors to cover a larger
detection area such as along the wall of a computer or utility room. We hope
to launch both of these products in the next couple of weeks and they will be
promoted as our new products at the International Security Conference in New
York the first week of November 2011.
Engineering is also looking to complete a design on an 110V Current
Controller which would work with our contact switches to secure the door of
a storage unit and also turn on the light when the door is opened.
Recently Issued Accounting Pronouncements
~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~
There are no new accounting pronouncements that significantly affect the
Company.
Other Information
~~~~~~~~~~~~~~~~~
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 GRI's products, since we sell
to distributors and OEM manufacturers. Our products are tied to the housing
industry and will fluctuate with building trends.
GEORGE RISK INDUSTRIES, INC.
PART I. FINANCIAL INFORMATION
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.
Item 3A. Controls and Procedures
Evaluation of disclosure controls and procedures:
-------------------------------------------------
Based on their evaluation of our disclosure controls and procedures (as de-
fined in Rules 13a-15(e) and 15d-15(e) under the Exchange Act) as of July 31,
2011, our president and chief executive officer and our chief financial
officer have concluded that our disclosure controls and procedures are
effective such that information required to be disclosed by us in the reports
that we file or submit under the Exchange Act is (i) recorded, processed,
summarized and reported within the time periods specified in the Securities
and Exchange Commission's rules and (ii) accumulated and communicated to our
management, including our chief executive officer and our chief financial
officer, as appropriate to allow timely decisions regarding disclosure. A
control system cannot provide absolute assurance, however, that the ob-
jectives of the control systems are met, and no evaluation of controls can
provide absolute assurance that all control issues and instances of fraud,
if any, within a company have been detected.
Changes in internal controls over financial reporting:
------------------------------------------------------
There was no change in our internal controls over financial reporting that
occurred during the period covered by this report, that has materially
affected, or is reasonably likely to materially affect, our internal con-
trols over financial reporting.
Management's Annual Report on Internal Control over Financial Reporting:
------------------------------------------------------------------------
Our management is responsible for establishing and maintaining adequate in-
ternal control over financial reporting, as such term is defined in Rules
13a-15(f) and 15d-15(f) of the Exchange Act. Our internal control system was
designed to provide reasonable assurance regarding the reliability of finan-
cial reporting and the preparation of financial statements for external pur-
poses, in accordance with generally accepted accounting principles. Because
of inherent limitations, a system of internal control over financial re-
porting may not prevent or detect misstatements. Therefore, even those
systems determined to be effective can provide no reasonable assurance of
achieving their control objectives. Also, projections of any evaluation of
effectiveness to future periods are subject to the risk that controls may
become inadequate due to change in conditions, or that the degree of com-
pliance with the policies or procedures may deteriorate.
Our management, including our principal executive officer and principal
accounting officer, conducted an evaluation of the effectiveness of our in-
ternal control over financial reporting using the criteria set forth by the
Committee of Sponsoring Organizations of the Treadway Commission (COSO) in
Internal Control-Integrated Framework. Based on its evaluation, our manage-
ment concluded that as of July 31, 2011 our internal control over financial
reporting is effective.
This quarterly report does not include an attestation report of the Corpor-
ation's registered public accounting firm regarding internal control over
financial reporting. Management's report was not subject to attestation by
the Corporation's registered public accounting firm pursuant to Section
404 (c) of the Sarbanes-Oxley Act of 2002, as amended, that permits the
Corporation to provide only the management's report in this quarterly report.
GEORGE RISK INDUSTRIES, INC.
Part II. OTHER INFORMATION
Item 1. Legal Proceedings
Not applicable
Item 2. Unregistered Sales of Equity Securities and Use of Proceeds
The following table provides information relating to the Company's
repurchase of common stock for the first quarter of fiscal year 2012.
Period Number of shares repurchased
------------------------------- ----------------------------
May 1, 2011 - May 31, 2011 750
June 1, 2011 - June 30, 2011 2,755
July 1, 2011 - July 31, 2011 100
Item 3. Defaults upon Senior Securities
Not applicable
Item 4. (Removed and Reserved)
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 July 31, 2011.
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 09-13-2011 By: /s/ Ken R. Risk
Ken R. Risk
President and Chairman of the Board
Date 09-13-2011 By: /s/ Stephanie M. Risk
Stephanie M. Risk
Chief Financial Officer and Controller
