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UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549

_________________

FORM 10-Q

_________________

 þ   QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d)
OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended: __July 31, 2012_

or

o     TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d)
OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from: _____ to ______

INTERNATIONAL BALER CORPORATION

(Exact name of registrant as specified in its charter)

_________________

Delaware

0-14443 13-2842053

(State or Other Jurisdiction (Commission (I.R.S. Employer
of Incorporation or Organization) File Number) Identification No.)

5400 Rio Grande Avenue, Jacksonville, FL 32254
(Address of Principal Executive Offices) (Zip Code)

(904-358-3812)
(Registrant’s telephone number, including area code)

N/A
(Former name or former address and former fiscal year, if changed since last report)

_________________

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 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   þ      No  o

Indicate by check mark whether the registrant has submitted electronically and posted on its corporate Web site, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files).     Yes  o     No  o

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, or a smaller reporting company.

Large accelerated filer  o Accelerated filer  o Non-accelerated filer  o Smaller reporting company   þ  

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Act).     Yes  o     No  þ

APPLICABLE ONLY TO REGISTRANTS INVOLVED IN BANKRUPTCY
PROCEEDINGS DURING THE PRECEDING FIVE YEARS:

Indicate by check mark whether the registrant has filed all documents and reports required to be filed by SectionS 12, 13 or 15(d) of the Securities Exchange Act of 1934 subsequent to the distribution of securities under a plan confirmed by a court.     Yes  o     No  o

APPLICABLE ONLY TO CORPORATE ISSUERS

Indicate the number of shares outstanding of each of the issuer’s classes of common stock, as of the latest practicable date: 5,183,895 shares of common stock August 30, 2012.

 

 
 
 
 

PART I

 

INTERNATIONAL BALER CORPORATION
       
TABLE OF CONTENTS
       
      PAGE
       
PART I.  FINANCIAL INFORMATION
       
  ITEM 1.   FINANCIAL STATEMENTS  
       
    Balance Sheets as of July 31, 2012, (unaudited) and October 31, 2011 2
       
    Statements of Income Operations for the three months and nine months ended July 31, 2012 and 2011 (unaudited). 3
       
    Statements of Changes in Stockholders’ Equity for the nine months ended July 31, 012 (unaudited). 4
       
    Statements of Cash Flows for the nine months ended July 31, 2012 and 2011 (unaudited). 5
       
    Notes to Financial Statements (unaudited) 6
       
       
  ITEM 2.   MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITIONS AND RESULTS OF OPERATIONS 8
       
  ITEM 3.   QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK 9
       
  ITEM 4.   CONTROLS AND PROCEDURES 9
       
PART II.  OTHER INFORMATION
       
  ITEM 1.        LEGAL PROCEEDINGS 10
       
  ITEM 5.       OTHER INFORMATION 10
       
  ITEM 6.        EXHIBITS 11
       
SIGNATURES   12
       
CERTIFICATIONS  

 

 

 

1
 

 

INTERNATIONAL BALER CORPORATION
BALANCE SHEETS
       
 
       
       
    July 31, 2012    October 31, 2011 
ASSETS   (Unaudited)      
           
Current assets:          
 Cash and cash equivalents  $2,758,479   $2,875,149 
 Accounts receivable, net of allowance for doubtful accounts          
          of $65,764 at July 31, 2012 and $50,764 October 31, 2011   993,834    1,038,979 
 Inventories   3,981,154    2,583,100 
 Prepaid expense and other current assets   143,550    87,894 
 Deferred income taxes   180,313    180,313 
         Total current assets   8,057,330    6,765,435 
           
Property, plant and equipment, at cost:   2,869,368    2,761,004 
 Less:  accumulated depreciation   1,815,998    1,711,704 
         Net property, plant and equipment   1,053,370    1,049,300 
           
Other assets:          
 Other assets   1,396    1,396 
 Note from former Director   —      2,988 
 Deferred income taxes   11,074    11,074 
         Total other assets   12,470    15,458 
           
TOTAL ASSETS  $9,123,170   $7,830,193 
           
LIABILITIES AND STOCKHOLDERS' EQUITY          
           
Current liabilities:          
 Accounts payable  $1,049,936   $630,556 
 Accrued liabilities   595,063    525,655 
 Current portion of deferred compensation   33,588    67,000 
 Customer deposits   1,027,165    1,299,252 
         Total current liabilities   2,705,752    2,522,463 
           
Deferred compensation, net of current portion   —      15,722 
         Total liabilities   2,705,752    2,538,185 
           
Commitments and contingencies (Note 9)          
           
Stockholders' equity:          
 Preferred stock, par value $.0001,          
       10,000,000 shares authorized, none issued   —      —   
 Common stock, par value $.01,          
       25,000,000 shares authorized;  6,429,875 shares          
       issued at July 31, 2012 and October 31, 2011   64,299    64,299 
 Additional paid-in capital   6,419,687    6,419,687 
 Retained earnings (deficit)   614,842    (510,568)
    7,098,828    5,973,418 
           
  Less:  Treasury stock, 1,245,980 shares          
                  at July 31, 2012 and October 31, 2011, at cost   (681,410)   (681,410)
           
          Total stockholders' equity   6,417,418    5,292,008 
           
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY  $9,123,170   $7,830,193 
           

 

See accompanying notes to financial statements.

 

 

2
 

 

INTERNATIONAL BALER CORPORATION
STATEMENTS OF INCOME
FOR THE THREE MONTHS AND NINE MONTHS ENDED JULY 31, 2012 and 2011
             
UNAUDITED
             
             
             
          
   Three Months  Nine Months
          
    2012    2011    2012    2011 
Net Sales:                    
    Equipment  $4,666,461   $2,699,995   $12,611,610   $6,551,045 
    Parts and Service   426,692    405,113    1,386,297    1,235,781 
Total Net Sales   5,093,153    3,105,108    13,997,907    7,786,826 
                     
Cost of Sales   4,023,479    2,377,455    10,867,098    6,037,624 
                     
Gross Profit   1,069,674    727,653    3,130,809    1,749,202 
                     
                     
Operating Expense:                    
    Selling Expense   185,376    130,995    553,326    357,400 
    Administrative Expense   278,112    203,938    741,686    548,460 
Total Operating Expense   463,488    334,933    1,295,012    905,860 
                     
Operating Income   606,186    392,720    1,835,797    843,342 
                     
Other Income (Expense):                    
    Interest Income   1,392    2,021    4,613    6,417 
Total Other Income   1,392    2,021    4,613    6,417 
                     
                     
Income Before Income Taxes   607,578    394,741    1,840,410    849,759 
                     
Income Tax Provision   237,000    154,000    715,000    329,500 
                     
Net Income  $370,578   $240,741   $1,125,410   $520,259 
                     
                     
Basic Income per share  $0.07   $0.05   $0.22   $0.10 
Diluted Income per share   0.07    0.05    0.22    0.10 
                     
Weighted average number of shares outstanding - Basic   5,183,895    5,183,895    5,183,895    5,041,038 
                                                                             - Diluted   5,183,895    5,183,895    5,183,895    5,115,867 
                     

 

See accompanying notes to financial statements.

 

3
 

 

 

  INTERNATIONAL BALER CORPORATION
  STATEMENTS OF STOCKHOLDERS' EQUITY
  FOR THE NINE MONTHS ENDED JULY 31, 2012
  UNAUDITED
                               
                               
                               
                           
                           
      Common Stock           Treasury Stock    
                               
      NUMBER       ADDITIONAL    RETAINED   NUMBER       TOTAL
      OF SHARES   PAR   PAID-IN   EARNINGS   OF       STOCKHOLDERS'
      ISSUED   VALUE   CAPITAL   (DEFICIT)   SHARES   COST   EQUITY
                               
Balance at October 31, 2011   6,429,875 $ 64,299 $ 6,419,687 $ (510,568)   1,245,980 $ (681,410) $ 5,292,008
                               
  Net Income   -0-   -0-   -0-   1,125,410   -0-   -0-   1,125,410
                               
Balance at July 31, 2012   6,429,875 $ 64,299 $ 6,419,687 $ 614,842   1,245,980 $ (681,410) $ 6,417,418
                               

 

 

 

See accompanying notes to financial statements.

 

 

4
 

 

 

INTERNATIONAL BALER CORPORATION
STATEMENTS OF CASH FLOWS
FOR THE NINE MONTHS ENDED JULY 31, 2012 AND 2011
UNAUDITED
       
       
    2012    2011 
           
Cash flow from operating activities:          
 Net income  $1,125,410   $520,259 
 Adjustments to reconcile net income to net cash provided by          
 operating activities:          
    Depreciation and amortization   104,294    65,317 
    Provision for doubtful accounts   15,000    —   
    Deferred income taxes   —      329,500 
    Changes in operating assets and liabilities:          
      Accounts receivable   30,145    (441,772)
      Inventories   (1,398,054)   (1,112,704)
      Prepaid expenses and other current assets   (63,283)   (62,356)
      Accounts payable   419,380    261,216 
      Accrued liabilities and deferred compensation   20,274    11,252 
      Customer deposits   (272,087)   692,875 
          Net cash (used in) provided by operating activities   (18,921)   263,587 
           
Cash flows from investing activities:          
  Proceeds from notes receivable from former Director   10,615    9,998 
  Purchases of property and equipment   (108,364)   (213,866)
          Net cash used in investing activities   (97,749)   (203,868)
           
Cash Flows from financing activities:          
  Issuance of common stock   —      75,000 
          Net cash provided by financing activities   —      75,000 
           
Net (decrease) increase in cash and cash equivalents   (116,670)   134,719 
           
Cash and cash equivalents at beginning of period   2,875,149    2,101,204 
           
Cash and cash equivalents at end of period  $2,758,479   $2,235,923 
           
Supplemental disclosure of cash flow information:          
Cash paid during the period for:          
   Income taxes  $640,000   $—   

 

 

See accompanying notes to financial statements.

 

5
 

INTERNATIONAL BALER CORPORATION

NOTES TO FINANCIAL STATEMENTS (UNAUDITED)

 

1. Nature of Business:

 

International Baler Corporation (the Company) is a manufacturer of baling equipment which is designed to compress a variety of materials into bales for easier handling, shipping, disposal, storage, and for recycling. Materials commonly baled include scrap metal, corrugated boxes, newsprint, aluminum cans, plastic bottles, and other solid waste. More sophisticated applications include baling of textile materials, fibers and synthetic rubber. The Company offers a wide variety of balers, standard models as well as custom models, and conveyors to meet specific customer requirements.

 

The Company’s customers include recycling facilities, distribution centers, textile mills, and companies which generate the materials for baling and recycling. The Company sells its products worldwide with 10% to 35% of its annual sales outside the United States.

 

 

2.Basis of Presentation:

 

The accompanying unaudited financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America for interim financial information and with the instructions to Form 10-Q and Article 8-03 of Regulation S-X. Accordingly, they do not include all of the information in footnotes required by accounting principles generally accepted in the United States of America for complete financial statements. In the opinion of management, all adjustments (consisting of normal recurring accruals) considered necessary to make the financial statements not misleading have been included. Operating results for the nine-month period ended July 31, 2012 are not necessarily indicative of the results that may be expected for the year ending October 31, 2012. The accompanying balance sheet as of October 31, 2011 was derived from the audited financial statements as of October 31, 2011.

 

3. Summary of Significant Accounting Policies:

 

(a) Accounts Receivable & Allowance for Doubtful Accounts:

 

Trade accounts receivable are recorded at the invoiced amount and do not bear interest. The Company maintains an allowance for doubtful accounts for estimated losses inherent in its accounts receivable. The Company reviews its allowance for doubtful accounts monthly. Past due balances are reviewed individually for collectibility. Account balances are charged off against the allowance after all means of collection have been exhausted and the potential for recovery is considered remote.

 

(b) Inventories:

 

Inventories are stated at the lower of cost or market. Cost is determined by a method that approximates the first-in, first-out method. Work in process and finished goods are valued based on underlying costs to manufacture balers which include direct materials, direct and indirect labor, and overhead. Company personnel review the potential usage of inventory and inventory components on a regular basis.

 

 

 

(c) Revenue Recognition:

 

The Company recognizes revenue when finished products and/or parts are shipped and the customer takes ownership and assumes the risk of loss. Revenue from installation services is recognized on completion of the service. The Company recognizes revenue from installations and start-ups and repair services in the period in which the service is provided.

 

(d) Basic and Diluted Income Per Share:

 

Basic income per share is calculated using the weighted average number of common shares outstanding during each period. Diluted income per share includes the net additional number of shares that would be issued upon the exercise of stock options using the treasury stock method. Options are not considered in loss periods as they would be antidilutive. The dilutive impact of options outstanding at July 31, 2012 and July 31, 2011 was -0- shares and 74,829 shares, respectively.

 

(e) Warranties and Service

 

The Company warrants its products for one (1) year from the date of sale as to materials and six (6) months as to labor, and offers a service plan for other required repairs and maintenance. The Company maintains an accrued liability for expected warranty claims. The warranty accrual is based on historical warranty costs, the quantity and types of balers under warranty, and known warranty issues.

 

Following is a tabular reconciliation of the changes in the warranty accrual for the nine-month period ended July 31:

 

    2012    2011 
Beginning balance  $54,859   $49,859 
Warranty service provided   (118,030)   (112,759)
New product warranties   189,174    98,265 
Changes to pre-existing warranty accruals   3,997    19,494 
           
Ending balance  $60,000   $54,859 

 

 

6
 

 

(f) Fair Value of Financial Instruments

 

The carrying amounts of the Company’s financial instruments, including cash and cash equivalents, accounts receivable, accounts payable, accrued liabilities, and customer deposits, approximate their fair value due to the short-term nature of these assets and liabilities.

 

4. Related Party Transactions:

 

The Company has a note receivable from its former president and director totaling $7,211 and $17,826 at July 31, 2012 and October 31, 2011, respectively. Interest accrues at the rate of 6% per annum.

 

 

The Company has an agreement with the former president and director of the Company for deferred compensation payments. The Company will make payments with a present value of $33,588, payable through January 2013 at $5,813 per month. A portion of the payments will be used to repay the outstanding note receivable discussed above.

 

Leland E. Boren, a stockholder and director of the Company, is the owner of Avis Industrial Corporation (Avis). Mr. Boren controls 51.0% of the outstanding shares of the Company. Avis owns 100% of The American Baler Company, a competitor of the Company. These baler companies operate independent of each other. The Company had no equipment sales to, or purchases from, The American Baler Company for the nine months ended July 31, 2012 or 2011.

 

5. Inventories

 

Inventories consisted of the following:

 

   July 31, 2012  October 31, 2011
Raw materials  $1,418,702   $1,009,648 
Work in process   2,269,606    1,429,606 
Finished goods   292,846    143,846 
   $3,981,154   $2,583,100 

 

 

6. Debt

 

The Company has a $1,000,000 line of credit agreement with CenterState Bank of Florida. The line of credit allows the Company to borrow against the Company’s accounts receivable, inventory and property, plant and equipment. The line of credit bears interest at the prime rate plus one-quarter percent with a floor of 4.0%. The line of credit had no outstanding balance at July 31, 2012 and October 31, 2011, and the unused line of credit was $1,000,000 at July 31, 2012.

 

7. Income Taxes

 

As of July 31, 2012, the Company’s anticipated annual effective tax rate is 39%. The difference between income taxes as provided at the federal statutory tax rate of 34% and the Company’s actual income tax is primarily the result of state income tax expense and permanent deductible differences.

 

Tax assets are recognized in the balance sheet if it is more likely than not that they will be realized on future tax returns. Factors considered included, historical results of operations, volatility of the economic conditions and projected earnings based on current operations. Based on this evidence, it is more likely than not that the deferred tax assets would be realized. Accordingly, the valuation allowance as of July 31, 2012 and at October 31, 2011 is $0. However, if it is determined that all or part of the deferred tax assets will not be used in the future, an adjustment to the deferred tax assets would be charged against net income in the period such determination is made. As of July 31, 2012 and October 31, 2011, net deferred tax assets were $191,387.

 

8. Stock-Based Compensation

 

In June 2002, the Company granted 250,000 nonqualified stock options to purchase shares of the Company’s common stock. These options, which vested immediately, had an exercise price of $0.30 and a term of 10 years. The Company has no remaining authorized shares available for grant under existing stock option plans. As all options were fully vested, there was no impact to net income for the nine months ended July 31, 2012 and 2011 related to stock options. The stock options were exercised in April 2011 and 250,000 shares of common stock were issued.

 

 

 

7
 

 

 

 

9. Commitments and Contingencies

 

The Company, in the ordinary course of business, is subject to claims made, and from time to time is named as a defendant in legal proceedings relating to the sales of its products. The Company believes that the reserves reflected in its financial statements are adequate to pay losses and loss adjustment expenses which may result from such claims and proceedings; however, such estimates may be more or less than the amount ultimately paid when the claims are settled. In the opinion of management, the ultimate disposition of these matters will not have a material adverse effect on the Company’s financial position, results of operations, or liquidity.

 

On August 26, 2010, the Company was served with a wrongful death lawsuit filed by the Estate of a former employee who was injured in a workplace accident while an employee of the Company. The accident occurred in September 2008. The Plaintiff has demanded $2,500,000 to settle this claim. The Company intends to vigorously defend this case and has contacted its liability insurance carrier to request defense and indemnification of any losses incurred in connection with this lawsuit. A motion to dismiss the Complaint was granted without prejudice in January 2012, allowing the Plaintiff the ability to file an amended Complaint.

 

 

ITEM 2. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

 

The following discussion should be read together with our unaudited financial statements and the related notes thereto included in Part I, Item 1 “Financial Statements”. For further information, refer to the Company’s Annual Report on Form 10-K for the year ended October 31, 2011, and the Management Discussion and Analysis of Financial Condition and Results of Operations included in this Form 10-Q.

 

Results of Operations: Three Month Comparison

 

In the third quarter ended July 31, 2012, the Company had net sales of $5,093,153, compared to net sales of $3,105,108 in the third quarter of fiscal 2011, an increase of 64.0%. The increase in revenue is the result of higher shipments of two-ram balers and synthetic rubber balers in the third quarter of fiscal 2012 compared to the third quarter 2011. The Company’s expanded dealer network contributed to the higher two-ram sales in the quarter.

 

The Company had pre-tax income of $607,578 in the third quarter, compared to $394,741 in the third quarter of fiscal 2011. The improvement in income was the result of the higher shipments of equipment and parts and service and the higher absorption of fixed costs. Selling and administrative expenses increased by $128,555 in the third quarter compared to the prior year third quarter.

 

Results of Operations: Nine Month Comparison

 

The Company had net sales of $13,997,907 in the first nine months of fiscal 2012 compared to net sales of $7,786,826 in the same period of fiscal 2011, an increase of 79.8%. The higher net sales was the result of the shipment of seventeen rubber balers and seventeen two-ram balers compared to two rubber balers and nine two-ram balers in the first nine months of 2011.

 

Gross profit was $1,381,607 higher in the nine months of 2012 than in the prior year and gross profit margins were to 22.4% and 22.5% in 2012 and 2011, respectively.

 

The Company had pre-tax income of $1,840,410 in the first nine months of 2012 compared to income of $849,759 in the first nine months of fiscal 2011. Selling and administrative expenses were $389,152 higher in the first nine months of fiscal 2012 than in the prior year.

 

 

8
 

 

The sales order backlog was $5,320,000 at July 31, 2012 and $4,700,000 at July 31, 2011.

Financial Condition and Liquidity:

 

Net working capital at July 31, 2012 was $5,351,578, as compared to $4,242,972 at October 31, 2011. The Company currently believes that it will have sufficient cash flow to be able to fund operating activities for the next twelve months.

 

Average days sales outstanding (DSO) in the first nine months of fiscal 2012 were 28.2 days, as compared to 26.6 days in the first nine months of fiscal 2011. DSO is calculated by dividing the total of the month-end net accounts receivable balances for the period by three, and dividing that result by the average days sales for the period (period sales ÷ 273).

 

During the nine months ended July 31, 2012 and 2011, the Company made additions to plant and equipment of $108,364 and $213,866, respectively.

 

The Company has a $1,000,000 line of credit agreement with CenterState Bank of Florida. The line of credit allows the Company to borrow against the Company’s accounts receivable, inventory and property, plant and equipment. The line of credit bears interest at the prime rate plus one-quarter percent with a floor of 4.0%. The line of credit had no outstanding balance at July 31, 2012 and October 31, 2011, and the unused line of credit was $1,000,000 at July 31, 2012.

 

In the event that the Company’s line of credit would not be available, the Company would pursue a line of credit from other sources, and take steps to minimize expenditures, such as delaying capital expenditures and reducing overhead costs.

 

Forward Looking Statements

 

Certain statements in this Report contain forward-looking statements within the meaning of Section 21B of the Securities and Exchange Act of 1934, as amended. These forward-looking statements represent the Company=s present expectations or beliefs concerning future events. The Company cautions that such statements are necessarily based on certain assumptions which are subject to risks and uncertainties including, but not limited to, changes in general economic conditions and changing competition which could cause actual results to differ materially from those indicated.

 

ITEM 3. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK


The Company is exposed to changes in interest rates as a result of its financing activities, including its borrowings on the revolving line of credit facility. Based on the current level of borrowings, a change in Interest rates is not expected to have a material effect on operations or financial position.

 

ITEM 4. CONTROLS AND PROCEDURES

 

Controls and Procedures

 

The Company maintains disclosure controls and procedures that are designed to ensure that information required to be disclosed by the Company in reports that it files or submits under the Securities Exchange Act, is recorded, processed, summarized and reported within the time periods specified in the SEC’s rules and forms and that such information is accumulated and communicated to our management, including the Company’s Chief Executive Officer (CEO) and Chief Financial Officer (CFO), as appropriate, to allow timely decisions regarding required disclosures.

 

 

 

9
 

 

In designing and evaluating the disclosure controls and procedures, management recognizes that any controls and procedures, no matter how well designed and operated, can provide only reasonable assurance of achieving the desired control objectives, and management is necessarily required to apply its judgment in evaluating the cost-benefit relationship of possible controls and procedures.

 

As of the end of the period covered by this report, and under the supervision and with the participation of the management, including the Company’s Chief Executive Officer and Chief Financial Officer, management evaluated the effectiveness of the design and operation of these disclosure controls and procedures. Based on this evaluation and subject to the foregoing, the Company’s Chief Executive Officer and Chief Financial Officer concluded that the Company’s disclosure controls and procedures were effective.

 

Management, with the participation of the Company’s principal executive and principal financial officers, assessed the effectiveness of the Company’s internal control over financial reporting as of July 31, 2012. This assessment was performed using the criteria established under the Internal Control-Integrated Framework established by Committee of Sponsoring Organization of the Treadway Commission (“COSO”).

 

As part of a continuing effort to improve the Company’s business processes management is evaluating its internal controls and may update certain controls to accommodate any modifications to its business processes or accounting procedures.

 

Changes in Internal Control over Financial Reporting

 

The Company’s management, including CEO and CFO, confirm that there were no changes in the Company’s internal control over financial reporting during the fiscal quarter ended July 31, 2012 that have materially affected, or are reasonably likely to materially affect, the Company’s internal control over financial reporting.

 

PART II. OTHER INFORMATION

 

ITEM 1. LEGAL PROCEEDINGS

 

On August 26, 2010, the Company was served with a wrongful death lawsuit filed by the Estate of a former employee who was injured in a workplace accident while an employee of the Company. The accident occurred in September 2008. The Plaintiff has demanded $2,500,000 to settle this claim. The Company intends to vigorously defend this case and has contacted its liability insurance carrier to request defense and indemnification of any losses incurred in connection with this lawsuit. A motion to dismiss the Complaint was granted without prejudice in January 2012, allowing the Plaintiff the ability to file an amended Complaint.

 

ITEM 5. OTHER INFORMATION

 

None.

 

 

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ITEM 6.  EXHIBITS
    
 The following exhibits are submitted herewith:
      
 Exhibit   Discription
 31.1   Certification of D. Roger Griffin, Chief Executive Officer, pursuant to Rule 13a–14(a)/15d-14(a).
      
 31.2   Certification of William E. Nielsen, Chief Financial Officer, pursuant to Rule 13a–14(a)/15d-14(a).
      
 32.1   Certification of D. Roger Griffin, Chief Executive Officer, pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.
      
 32.2   Certification of William E. Nielsen, Chief Financial Officer, pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.

 

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SIGNATURES

 

Pursuant to the requirements of the Securities and Exchange Act of 1934, the Registrant has caused this report to be signed on its behalf by the undersigned there unto duly authorized.

 

Dated: Septem D Dated: September 12, 2012

 

INTERNATIONAL BALER CORPORATION

 

 

 

Date:  September 12, 2012

  International Baler Corporation
  By: /s/ D. Roger Griffin
  D. Roger Griffin
Chief Executive Officer

 

 

 

Date:  September 12, 2012

  International Baler Corporation
  By: /s/ William E. Nielsen
  William E. Nielsen
Chief Officer

 

 

 

 

 

 

 

 

 

 

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