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

_________________

FORM 10-Q

_________________

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

For the quarterly period ended: January 31, 2014

or

¨     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  [X]     No  [ ]

 

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  [ ]     No  [ ]

 

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  [ ] Accelerated filer  [ ] Non-accelerated filer  [ ] Smaller reporting company  [ ]

 

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

 

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  [ ]     No  [ ]

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 February28, 2014

 
 

INTERNATIONAL BALER CORPORATION

TABLE OF CONTENTS
         

      PAGE
       
PART I.  FINANCIAL INFORMATION 3
       
  ITEM 1.  FINANCIAL STATEMENTS  
    Balance Sheets as of January 31, 2014, (unaudited) and October 31, 2013 3
       
    Statements of Income for the three months ended January 31, 2014 and 2013 (unaudited) 4
       
    Statement of Changes in Stockholders’ Equity for the period from October 31, 2013 to January 31, 2014 (unaudited) 5
       
    Statements of Cash Flows for the three months ended January 31, 2014 and 2013 (unaudited). 6
       
    Notes to Financial Statements (unaudited) 7
       
  ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS 10
       
  ITEM 3. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK 11
       
  ITEM 4. CONTROLS AND PROCEDURES 11
       
PART II. OTHER INFORMATION 12
       
  ITEM 1. LEGAL PROCEEDINGS 12
       
  ITEM 5. OTHER INFORMATION 12
       
  ITEM 6. EXHIBITS 13
       
SIGNATURES 14
       
CERTIFICATIONS 15

           

 

 
 

ITEM 1.  FINANCIAL STATEMENTS

INTERNATIONAL BALER CORPORATION
BALANCE SHEETS
       
 
       
       
    January 31, 2014    October 31, 2013 
ASSETS   Unaudited      
           
Current assets:          
  Cash and cash equivalents  $1,687,313   $1,877,256 
  Accounts receivable, net of allowance for doubtful accounts          
           of $45,764 at January 31, 2014 and October 31, 2013   3,391,267    2,466,887 
  Inventories   5,570,206    5,960,365 
  Prepaid expense and other current assets   108,748    98,792 
  Deferred income taxes   71,128    71,128 
          Total current assets   10,828,662    10,474,428 
           
Property, plant and equipment, at cost:   3,120,917    3,096,560 
  Less: accumulated depreciation   2,008,631    1,972,631 
          Net property, plant and equipment   1,112,286    1,123,929 
           
Other assets:          
  Other assets   1,256    1,256 
  Deferred income taxes   8,495    8,495 
          Total other assets   9,751    9,751 
           
TOTAL ASSETS  $11,950,699   $11,608,108 
           
LIABILITIES AND STOCKHOLDERS' EQUITY          
           
Current liabilities:          
  Revolving promissary note  $1,648,649   $1,648,649 
  Accounts payable   767,267    1,439,777 
  Accrued liabilities   500,825    659,096 
  Customer deposits   1,670,813    677,954 
          Total current liabilities   4,587,554    4,425,476 
           
           
          Total liabilities   4,587,554    4,425,476 
           
Commitments and contingencies (Note 8)          
           
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 January 31, 2014 and October 31, 2013   64,299    64,299 
  Additional paid-in capital   6,419,687    6,419,687 
  Retained earnings   1,560,569    1,380,056 
    8,044,555    7,864,042 
           
   Less:  Treasury stock, 1,245,980 shares          
                   at January 31, 2014 and October 31, 2013, at cost   (681,410)   (681,410)
           
           Total stockholders' equity   7,363,145    7,182,632 
           
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY  $11,950,699   $11,608,108 
           
           
See accompanying notes to financial statements.

 

 
 

INTERNATIONAL BALER CORPORATION
STATEMENTS OF INCOME
FOR THE THREE MONTHS ENDED JANUARY 31, 2014 AND 2013
UNAUDITED
       
    
    2014    2013 
           
           
Net sales:          
     Equipment  $3,303,654   $3,496,627 
     Parts and service   643,913    399,239 
Total net sales   3,947,567    3,895,866 
           
Cost of sales   3,122,048    3,177,289 
           
Gross profit   825,519    718,577 
           
           
Operating expense:          
     Selling expense   265,031    252,821 
     Administrative expense   269,508    272,347 
Total operating expense   534,539    525,168 
           
Operating income   290,980    193,409 
           
Other income (expense):          
     Interest income   —      430 
     Interest expense   (10,467)   (3,604)
Total other income  (expense)   (10,467)   (3,174)
           
           
Income before income taxes   280,513    190,235 
           
Income tax provision   100,000    74,000 
           
Net income  $180,513   $116,235 
           
           
Income per share, basic and diluted  $0.03   $0.02 
           
Weighted average number of shares outstanding   5,183,895    5,183,895 
           
           
See accompanying notes to financial statements. 

 
 

 

INTERNATIONAL BALER CORPORATION
STATEMENTS OF STOCKHOLDERS' EQUITY
FOR THE THREE MONTHS ENDED JANUARY 31, 2014
UNAUDITED
                      
                      
                      
                   
                   
    Common Stock              Treasury Stock          
                                    
    NUMBER                             
    OF SHARES    PAR    ADDITIONAL PAID-IN    RETAINED    NUMBER OF         TOTAL STOCKHOLDERS' 
    ISSUED    VALUE    CAPITAL    EARNINGS    SHARES    COST    EQUITY 
                                    
Balance at October 31, 2013   6,429,875   $64,299   $6,419,687   $1,380,056    1,245,980   $(681,410)  $7,182,632 
                                    
Net Income   —      —      —      180,513    —      —      180,513 
                                    
Balance at January 31, 2014   6,429,875   $64,299   $6,419,687   $1,560,569    1,245,980   $(681,410)  $7,363,145 
                                    
                                    
                                    
                                    
                                    
                                    
                                    
                                    
See accompanying notes to financial statements.

 

 
 

INTERNATIONAL BALER CORPORATION
STATEMENTS OF CASH FLOWS
FOR THE THREE MONTHS ENDED JANUARY 31, 2014 AND 2013
UNAUDITED
       
       
    2014    2013 
           
Cash flow from operating activities:          
  Net income  $180,513   $116,235 
  Adjustments to reconcile net income to net cash (used in) provided by          
  operating activities:          
     Depreciation and amortization   36,000    42,604 
     Changes in operating assets and liabilities:          
       Accounts receivable   (924,380)   271,857 
       Inventories   390,159    513,730 
       Prepaid expenses and other assets   (9,956)   32,324 
       Accounts payable   (672,510)   (90,989)
       Accrued liabilities and deferred compensation   (158,271)   (225,523)
       Customer deposits   992,859    (558,114)
           Net cash (used in) provided by operating activities   (165,586)   102,124 
           
Cash flows from investing activities:          
   Proceeds from notes receivable from former Director   —      3,673 
   Purchase of property and equipment   (24,357)   (83,112)
           Net cash used in investing activities   (24,357)   (79,439)
           
Net increase (decrease) in cash and cash equivalents   (189,943)   22,685 
           
Cash and cash equivalents at beginning of period   1,877,256    1,719,140 
           
Cash and cash equivalents at end of period  $1,687,313   $1,741,825 
           
Supplemental disclosure of cash flow information:          
Cash paid during period for:          
    Interest  $10,467   $—   
    Income taxes   115,000    —   
           
           
           
           
           
See accompanying notes to financial statements.

 
 

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 annual sales outside the United States typically ranging from 10% to 35%.

 

 

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 three-month period ended January 31, 2014 are not necessarily indicative of the results that may be expected for the year ending October 31, 2014. The accompanying balance sheet as of October 31, 2013 was derived from the audited financial statements as of October 31, 2013.

             

 

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 including the analysis of historical trends, customer credit worthiness and the aging of receivables. 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. The Company reviews inventory for obsolescence 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)              Warranties and Service:

The Company typically warrants its products for one (1) year from the date of sale as to materials and six (6) months as to labor, and offers services for other required repairs and maintenance. Service is rendered by repairing or replacing parts at the Company’s Jacksonville, Florida, facility, by on-site service provided by Company personnel who are based in Jacksonville, Florida or by local service agents who are engaged as needed. 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 currently under warranty, and known warranty issues.

 

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

             

    2014    2013 
Beginning balance  $60,000.00   $60,000.00 
Warranty service provided   (22,063.00)   (32,681.00)
New product warranties   33,037.00    34,966.00 
Changes to pre-existing warranty accruals   (974.00)   (2,285.00)
Ending balance   70,000.00    60,000.00 

(e) 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: 

Leland E. Boren, a stockholder and director of the Company, is the owner of Avis Industrial Corporation (Avis). Mr. Boren controls 50.8% of the outstanding shares of the Company. Avis owns 100% of The American Baler Company, a competitor of the Company. On January 1, 2014, Avis acquired The Harris Waste Management Group, Inc., also a competitor of the Company. These baler companies operate independent of each other.  The Company had no equipment sales to, or purchases from, these companies for the three months ended January 31, 2014 or in fiscal year ended October 31, 2013.

 
 

5. Inventories:

Inventories consisted of the following:    

   January 31, 2014  October 31, 2013
Raw materials  $1,636,502   $1,796,661 
Work in process   3,739,544    3,964,544 
Finished goods   194,160    199,160 
   $5,570,206   $5,960,365 

  

6. Debt: 

The Company has a $1,650,000 line of credit agreement with First Merchants Bank of Muncie, Indiana that was entered into on January 7, 2013.  The line of credit allows the Company to borrow at an interest rate equal to the sum of the LIBOR Rate applicable to each interest period plus 2.24%. The line of credit is secured by all assets of the Company and has a term of two years.  The line of credit had an outstanding balance of $1,648,649 at January 31, 2014 and October 31, 2013.

 

 

7.  Income Taxes: 

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 January 31, 2014 and at October 31, 2013 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 January 31, 2014 and October 31, 2013, net deferred tax assets were $79,623.

 

 

8. 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 and no further action has been taken by the Plaintiff.

 
 

While the outcome of this lawsuit is uncertain, based upon information currently available, the Company believes it is highly unlikely that the results of this claim against the Company will have a material adverse effect on the Company’s financial position, results of operations or cash flows.  The Company has accrued the amount of its insurance deductible in relation to this lawsuit.

 

On December 26, 2013 the Company was served with a civil action filed by Georgetown Paper Stock of Rockville, Inc. for breach of warranties.  The Plaintiff has demanded $338,248 plus interest and costs to settle this claim.  The Company intends to defend this lawsuit and file a counterclaim against the plaintiff for $40,916 along with reimbursement of expense and lost profits. 

 

While the outcome of this lawsuit is uncertain, based upon the information currently available, the Company believes it is highly unlikely that the results of this claim against the Company will have a material adverse effect on the Company’s financial position, results of operations and cash flows.

 

 

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, 2013, 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 first quarter ended January 31, 2014, the Company had net sales of $3,947,567, compared to net sales of $3,895,866 in the first quarter of fiscal 2013, an increase of 1.3%.  The types of equipment sold in the first quarter of the current fiscal year and the prior fiscal year were similar in quantity and value.

 

The Company had net income of $180,513 in the first quarter of fiscal 2014, compared to $116,235 in the first quarter of fiscal 2013.  The higher income was the result of higher gross margins in 2014 from higher parts sales.  Selling and administrative expenses were slightly higher in 2014.

 

The sales order backlog was $11,300,000 at January 31, 2014 and $2,760,000 at January 31, 2013. This increase in the Company’s sales order backlog was the result of an increase in orders for the Company’s rubber balers.

 

Financial Condition and Liquidity:

 

Net working capital at January 31, 2014 was $6,241,109 as compared to $6,048,952 at October 31, 2013. 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 three months of fiscal 2014 were 75.0 days, as compared to 31.9 days in the first three months of fiscal 2013. 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 day’s sales for the period (period sales ÷ 91.25).

 

During the three months ended January 31, 2014 and 2013, the Company made additions to plant and equipment of $24,357 and $83,112, respectively.

 

The Company has a $1,650,000 line of credit agreement with First Merchants Bank of Muncie, Indiana that was entered into on January 7, 2013. The line of credit allows the company to borrow at an interest rate equal to the sum of the LIBOR Rate applicable to each interest period plus 2.24%.  The line of credit is secured by all assets of the Company and has a term of two years.

 

The line of credit had an outstanding balance at January 31, 2014 and at October 31, 2013 of $1,648,649.

 

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.

 

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 January 31, 2014.  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 January 31, 2014  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 and no further action has been taken by the Plaintiff.  In May 2013, the Company deposed the wife of the former employee in an effort to show this case lacks sufficient merit and file a motion for summary judgement.

 

In order for the Plaintiff to prevail and to circumvent Workers Compensation Immunity, the Plaintiff is required to prove that the Company knew with “virtual certainty” that the worker would be seriously injured or killed.  The elements proving this are very difficult to sustain and often courts rule in favor of employers on this issue.

 

On December 26, 2013 the Company was served with a civil action filed by Georgetown Paper Stock of Rockville, Inc. for breach of warranties.  The Plaintiff has demanded $338,248 plus interest and costs to settle this claim.  The Company intends to defend this lawsuit and file a counterclaim against the plaintiff for $40,916 along with reimbursement of expenses and lost profits. 

 

While the outcome of this lawsuit is uncertain, based upon information currently available, the Company believes it is highly unlikely that the results of this claim against the Company will have a material adverse effect on the Company’s financial apposition, results of operations and cash flows.

 

 

 

ITEM 5.  OTHER INFORMATON

 

None.

 
 

 

 

ITEM 6. EXHIBITS 

The following exhibits are submitted herewith:

Exhibit  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.

 

 
 

 

 

 

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: March 13, 2014

             

 

                                 

  INTERNATIONAL BALER CORPORATION
   
   
  BY: /s/D. Roger Griffin 
  D. Roger Griffin
  Chief Executive Officer
   
   
   
  BY: /s/William E. Nielsen 
  William E. Nielsen
  Chief Financial Officer

 
 

 

Exhibit 31.1

 

 

I, D. Roger Griffin, certify that:

 

1. I have reviewed this Quarterly Report on Form 10-Q for the quarter ended January 31, 2013 of International Baler Corp.;

 

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

 

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

 

4. The registrants other certifying officers and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

 

(a)Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;
(b)Designed such internal control over financial reporting, or caused such   internal control over financial reporting to be designed under our  supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;
(c)Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation.
(d)Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting, and

5. The registrants certifying officers and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions):

(a)All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and
(b)Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

              

Dated: March 13, 2014 /S/D. Roger Griffin
  D. Roger Griffin
  Chief Executive Officer

 

 

 
 

Exhibit 31.2

 

 

I, William E. Nielsen, certify that:

 

1. I have reviewed this Quarterly Report on Form 10-Q for the quarter ended January 31, 2014 of International   Baler Corp.;

 

2. Based on my knowledge, this report does not contain any untrue statement of a  material fact or omit to state a material fact necessary to make the statements  made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

 

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial  condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

 

4. The registrants other certifying officers and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

 

(a)Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;
(b)Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our  supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;
(c)Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation.
(d)Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting, and

5. The registrants certifying officers and I have disclosed, based on our most recent evaluation of internal control   over financial reporting, to the registrant's auditors and the audit committee of the registrant's board of               directors (or persons performing the equivalent functions):

(c)All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and
(d)Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

 

 

Dated: March 13, 2014 /S/William E. Nielsen
  William E. Nielsen
  Chief Financial Officer 

 

 
 

Exhibit 32.1

 

 

CERTIFICATION

 

Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 I hereby certify that:

 

I have reviewed the Quarterly Report of International Baler Corp. on Form 10-Q for the quarter ended January 31, 2014 (the “Report”);

 

To the best of my knowledge, the Report (i) fully complies with the requirements of section 13 (a) or 15 (d) of the Securities Exchange Act of 1934 (15 U.S.C. 78m(a) or 78o(d)); and (ii) the information contained in this Report fairly presents, in all material respects, the financial condition and results of operations of International Baler Corporation during the period covered by this Report.

 

                                                        

Dated: March 13, 2014 /S/D. Roger Griffin
  D. Roger Griffin
  Chief Executive Officer

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 
 

 

 

 

Exhibit 32.2

 

 

CERTIFICATION

 

Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 I hereby certify that:

 

I have reviewed the Quarterly Report of International Baler Corp. on Form 10-Q for the quarter ended January 31, 2014 (the “Report”);

 

To the best of my knowledge, the Report (i) fully complies with the requirements of section 13 (a) or 15 (d) of the Securities Exchange Act of 1934 (15 U.S.C. 78m(a) or 78o(d)); and (ii) the information contained in this Report fairly presents, in all material respects, the financial condition and results of operations of International Baler Corporation during the period covered by this Report.

 

Dated: March 13, 2014 /S/William E. Nielsen
  William E. Nielsen
  Chief Financial Officer