10QSB 1 oct200610qsb.txt 10QSB FOR THE QUARTER ENDED OCTOBER 31, 2006 UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, DC 20549 FORM 10-QSB (Mark One) [ X ] Quarterly report under Section 13 or 15(d) of the Securities Ex- change Act of 1934 For the quarter ended October 31, 2006 [ ] 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: 0-5378 GEORGE RISK INDUSTRIES, INC. (Exact name of small business issuer as specified in its charter) Colorado 84-0524756 (State of incorporation) (IRS Employers Identification No.) 802 South Elm St. Kimball, NE 69145 (Address of principal executive offices) (Zip Code) Registrant's telephone number, including area code: (308) 235-4645 APPLICABLE ONLY TO CORPORATE ISSUERS The number of shares of the Registrant's Common Stock outstanding, as of December 15, 2006 was 5,339,838. Transitional Small Business Disclosure Format: Yes [ X ] No [ ] GEORGE RISK INDUSTRIES, INC. PART I. FINANCIAL INFORMATION Item 1. Financial Statements The unaudited financial statements for the three and six month period ended October 31, 2006, are attached hereto. GEORGE RISK INDUSTRIES, INC. BALANCE SHEET OCTOBER 31, 2006
ASSETS Current Assets Cash and cash equivalents $ 4,542,000 Marketable securities (Note 2) 15,687,000 Accounts receivable: Trade, net of $50,000 doubtful account allowance 2,050,000 Other 1,000 Inventories (Note 3) 2,665,000 Prepaid expenses 95,000 Property tax overpayment 5,000 Deferred income taxes 286,000 ------------ Total Current Assets $25,331,000 Property and Equipment, net of accumulated depreciation $ 890,000 Other Assets Investment in Land Limited Partnership, at cost 200,000 Projects in process 25,000 Other 1,000 ------------ Total Other Assets $ 226,000 TOTAL ASSETS $26,447,000 ============
GEORGE RISK INDUSTRIES, INC. BALANCE SHEET OCTOBER 31, 2006
LIABILITIES AND STOCKHOLDERS' EQUITY Current Liabilities Accounts payable, trade $ 166,000 Dividends payable 161,000 Accrued expenses Payroll and related expenses 378,000 Income tax payable 160,000 ------------ Total Current Liabilities $ 865,000 Long-Term Liabilities Notes payable 25,000 Deferred income taxes 59,000 ------------ Total Long-Term Liabilities $ 84,000 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 Common stock, Class A, $.10 par value, 10,000,000 shares authorized, 8,502,832 shares issued and outstanding 850,000 Additional paid-in capital 1,736,000 Accumulated other comprehensive income 55,000 Retained earnings 24,829,000 Treasury stock, 3,160,719 shares, at cost (2,071,000) ------------ Total Stockholders' Equity $25,498,000 TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY $26,447,000 ============
GEORGE RISK INDUSTRIES, INC. STATEMENT OF INCOME AND RETAINED EARNINGS Three months Six months Three months Six months ended ended ended ended October 31, October 31, October 31, October 31, 2006 2006 2005 2005 --------------------------------------------------- Net Sales $ 3,631,000 $ 7,043,000 $ 3,636,000 $ 7,047,000 Less: cost of goods sold (1,716,000) (3,409,000) (1,734,000) (3,393,000) ------------ ------------ ------------ ------------ Gross Profit $ 1,915,000 $ 3,634,000 $ 1,902,000 $ 3,654,000 Operating Expenses: General and administrative 176,000 337,000 180,000 345,000 Selling 623,000 1,252,000 604,000 1,220,000 Engineering 19,000 34,000 18,000 37,000 Rent paid to related parties 12,000 28,000 12,000 28,000 ------------ ------------ ------------ ------------ Total Operating Expenses $ 830,000 $ 1,651,000 $ 814,000 $ 1,630,000 Income From Operations 1,085,000 1,983,000 1,088,000 2,024,000 Other Income (Expense) Other 1,000 5,000 46,000 47,000 Dividend and interest income 149,000 276,000 86,000 192,000 Gain (loss) on investments 147,000 60,000 (22,000) 2,000 ------------ ------------ ------------ ------------ $ 297,000 $ 341,000 $ 110,000 $ 241,000 Income Before Provisions for Income Tax 1,382,000 2,324,000 1,198,000 2,265,000 Provisions for Income Tax Current expense (578,000) (970,000) (501,000) (962,000) Deferred tax benefit (expense) 32,000 26,000 14,000 14,000 ------------ ------------ ------------ ------------ Total Income Tax Expense $ (546,000) $ (944,000) $ (487,000) $ (948,000) Net Income $ 836,000 $ 1,380,000 $ 711,000 $ 1,317,000 Retained Earnings, beginning of period $24,794,000 $24,250,000 $22,660,000 $22,054,000 Less: Cash Dividends Common Stock ($0.15 per share) (801,000) (801,000) ($0.10 per share) (536,000) (536,000) Retained Earnings, end of period $24,829,000 $24,829,000 $22,835,000 $22,835,000 Income Per Share of Common Stock: (Note 6) Basic $0.16 $0.26 $0.13 $0.25 Assuming Dilution $0.16 $0.25 $0.13 $0.24
GEORGE RISK INDUSTRIES, INC. STATEMENT OF COMPREHENSIVE INCOME
Three months Six months Three months Six months ended ended ended ended October 31, October 31, October 31, October 31, 2006 2006 2005 2005 ---------------------------------------------------- Net Income $ 836,000 $ 1,380,000 $ 711,000 $ 1,317,000 ------------ ------------ ------------ ------------ Other Comprehensive Income, net of tax Unrealized gain (loss) on securities: Unrealized holding gains (losses) arising during period 213,000 93,000 (94,000) 191,000 Reclassification adjustment for (gains) losses included in net income (147,000) 60,000 22,000 (2,000) Income tax expense related to other comprehensive income 28,000 64,000 (30,000) 79,000 ------------ ------------ ------------ ------------ Other Comprehensive Income $ 94,000 $ 217,000 $ (102,000) $ 268,000 Comprehensive Income $ 930,000 $ 1,597,000 $ 609,000 $ 1,585,000 ============ ============ ============ ============
GEORGE RISK INDUSTRIES, INC. STATEMENT OF CASH FLOWS
Three months Six months Three months Six months ended ended ended ended October 31, October 31, October 31, October 31, 2006 2006 2005 2005 ---------------------------------------------------- CASH FLOWS FROM OPERATING ACTIVITIES: Net Income $ 836,000 $ 1,380,000 $ 711,000 $ 1,317,000 Adjustments to reconcile net income to net cash provided by operating activities: Depreciation 46,000 89,000 47,000 93,000 (Gain) loss on sale of investments (147,000) (60,000) 22,000 (2,000) Changes in assets and liabilities: (Increase) decrease in: Accounts receivable (192,000) 88,000 56,000 94,000 Inventories (267,000) (395,000) (29,000) (4,000) Prepaid expenses (1,000) 17,000 8,000 (74,000) Employee receivables (1,000) (1,000) 1,000 0 Deferred income taxes 6,000 12,000 (14,000) (14,000) Increase (decrease) in: Accounts payable 34,000 25,000 (73,000) (39,000) Accrued expenses 102,000 11,000 143,000 32,000 Income tax payable 38,000 430,000 (484,000) (24,000) ------------ ------------ ------------ ------------ Net cash provided by (used in) operating activities $ 454,000 $ 1,596,000 $ 388,000 $ 1,379,000 CASH FLOWS FROM INVESTING ACTIVITIES: Other assets manufactured 19,000 5,000 (25,000) (2,000) (Purchase) of property and equipment (42,000) (52,000) (27,000) (227,000) Proceeds from sale of marketable securities 1,488,000 3,279,000 630,000 923,000 (Purchase) of marketable securities (2,743,000) (5,002,000) (996,000) (1,595,000) Purchase of treasury stock (1,000) (40,000) 0 (128,000) ------------ ------------ ------------ ------------ Net cash provided by (used in) investing activities $(1,279,000) $(1,810,000) $ (418,000) $(1,029,000) CASH FLOWS FROM FINANCING ACTIVITIES: Increase in long-term debt 0 0 0 100,000 Principal payments on long-term debt 0 (8,000) (25,000) (42,000) Dividends issued (731,000) (731,000) (488,000) (492,000) ------------ ------------ ------------ ------------ Net cash provided by (used in) financing activities $ (731,000) $ (739,000) $ (513,000) $ (434,000) NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS $(1,556,000) $ (953,000) $ (543,000) $ (84,000) ============ ============ ============ ============ Cash and cash equivalents, beginning of period $ 6,098,000 $ 5,495,000 $ 5,910,000 $ 5,451,000 Cash and cash equivalents, end of period $ 4,542,000 $ 4,542,000 $ 5,367,000 $ 5,367,000
GEORGE RISK INDUSTRIES, INC. NOTES TO FINANCIAL STATEMENTS OCTOBER 31, 2006 Note 1 Unaudited Interim Financial Statements The accompanying financial statements have been prepared in accordance with the instructions for Form 10QSB and do not include all of the inform- ation and footnotes required by generally accepted accounting principals for complete financial statements. These financial statements should be read in conjunction with the financial statements and notes contained in the com- pany's annual report on Form 10KSB for the year ended April 30, 2006 with the SEC. In the opinion of management, all adjustments, consisting only of nor- mal recurring adjustments considered necessary for a fair presentation, have been included. Operating results for any quarter are not necessarily in- dicative of the results for any other quarter or for the full year. Note 2 Marketable Securities The Company has investments in publicly traded equity securities as well as certain state and municipal debt securities. These securities are class- ified as available-for-sale securities, and are reported at fair value. Realized gains and losses are determined on the average cost basis, and are included in the Company's statement of income. Unrealized gains and losses are excluded from earnings and reported separately as a component of stock- holder's equity. Dividend and interest income are accrued as earned. Marketable equity securities and unrealized gains and losses consist of the following as of October 31, 2006 and October 31, 2005: Cost Basis $ 15,595,000 $ 13,305,000 Market Value 15,687,000 12,615,000 ------------- ------------- Net Unrealized Gain (Loss) $ 92,000 $ (690,000) ============= ============= Gross unrealized gain $ 576,000 $ 445,000 ============= ============= Gross unrealized loss $ (484,000) $ (1,135,000) ============= =============
In accordance with SFAS 115, if the Company determines that a marketable security has an other-than temporary decline in fair value, generally defined as when the cost basis exceeds the fair value for approximately one year, the Company will decrease the cost of the marketable security to the new fair value and recognize a realized loss. The investments are periodically evaluated to determine if impairment changes are required. As a result of this standard, management did not have to record any impairment losses for the quarter ended October 31, 2006 Note 3 Inventories At October 31, 2006 and October 31, 2005, respectively, inventories con- sisted of the following: Raw Materials $ 1,770,000 $ 1,410,000 Work in Process 536,000 456,000 Finished Goods 361,000 218,000 Warehouse in England 68,000 45,000 ------------- ------------- $ 2,735,000 $ 2,129,000 Less: allowance for obsolete inventory (70,000) (70,000) ------------- ------------- Net Inventories $ 2,665,000 $ 2,059,000 ============= =============
Note 4 Business Segments The following is financial information relating to industry segments:
For the quarter ended October 31, 2006 2005 ---------------------------- Net revenue: Pool alarm products $ 376,000 $ 292,000 Keyboard products 137,000 312,000 Security alarm and other products 3,118,000 3,032,000 ------------- ------------- Total net revenue $ 3,631,000 $ 3,636,000 Income from operations: Pool alarm products $ 113,000 $ 87,000 Keyboard products 40,000 94,000 Security alarm and other products 932,000 907,000 ------------- ------------- Total income from operations $ 1,085,000 $ 1,088,000 Identifiable assets: Pool alarm products $ 315,000 $ 292,000 Keyboard products 235,000 355,000 Security alarm and other products 4,889,000 4,229,000 Corporate general 21,008,000 18,783,000 ------------- ------------- Total assets $ 26,447,000 $ 23,659,000 Depreciation and amortization: Pool alarm products $ 3,000 $ 3,000 Keyboard products 0 0 Security alarm and other products 33,000 31,000 Corporate general 10,000 13,000 ------------- ------------- Total depreciation and amortization $ 46,000 $ 47,000 Capital expenditures: Pool alarm products $ 0 $ 0 Keyboard products 0 0 Security alarm and other products 42,000 27,000 Corporate general 0 0 ------------- ------------- Total capital expenditures $ 42,000 $ 27,000
Note 5 Revenue Recognition Revenue is recognized when risks and benefits in ownership are trans- ferred, which normally occurs at the time of the shipment of products. Note 6 Earnings per Share Basic and diluted earning per share, assuming convertible preferred stock was converted for each period presented, are:
For the three months ended October 31, 2006 ------------------------------------------- Income Shares Per-share (Numerator) (Denominator) Amount ----------- ------------- ----------- Net Income $ 836,000 =========== Basic EPS $ 836,000 5,342,179 $ 0.16 Effect of dilutive securities: Convertible preferred stock 0 20,500 ----------- ------------- ----------- Diluted EPS $ 836,000 5,362,679 $ 0.16 For the six months ended October 31, 2006 ------------------------------------------- Income Shares Per-share (Numerator) (Denominator) Amount ----------- ------------- ----------- Net Income $1,380,000 =========== Basic EPS $1,380,000 5,342,887 $ 0.26 Effect of dilutive securities: Convertible preferred stock 0 20,500 ----------- ------------- ----------- Diluted EPS $1,317,000 5,363,387 $ 0.25 For the three months ended October 31, 2005 ------------------------------------------- Income Shares Per-share (Numerator) (Denominator) Amount ----------- ------------- ----------- Net Income $ 711,000 =========== Basic EPS $ 711,000 5,362,153 $ 0.13 Effect of dilutive securities: Convertible preferred stock 0 20,500 ----------- ------------- ----------- Diluted EPS $ 711,000 5,382,653 $ 0.13 For the six months ended October 31, 2005 ------------------------------------------- Income Shares Per-share (Numerator) (Denominator) Amount ----------- ------------- ----------- Net Income $1,317,000 =========== Basic EPS $1,317,000 5,367,795 $ 0.25 Effect of dilutive securities: Convertible preferred stock 0 20,500 ----------- ------------- ----------- Diluted EPS $1,317,000 5,388,295 $ 0.24
Note 7 Retirement Benefit Plan On January 1, 1998, the Company adopted the George Risk Industries, Inc. Retirement Savings Plan (the "Plan"). The Plan is a defined contribution savings plan designed to provide retirement income to eligible employees of the corporation. The Plan is intended to be qualified under Section 401(k) of the Internal Revenue Code of 1986, as amended. Matching contributions by the Company of approximately $4,000 were paid during each quarter ending October 31, 2006 and 2005. Likewise, the Company paid matching contributions of approximately $8,000 during each six-month period ending October 31, 2006 and 2005. There were no discretionary contributions paid during either the quarters or six-month periods ending October 31, 2006 and 2005, respectively. GEORGE RISK INDUSTRIES, INC. PART I. FINANCIAL INFORMATION Item 2. Management Discussion and Analysis of Financial Condition and Results of Operations MANAGEMENT DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS The following discussion should be read in conjunction with the attached con- densed financial statements, and with the George Risk Industries' audited financial statements and discussion for the fiscal year ended April 30, 2006. Net cash decreased $1,556,000 during the quarter ended October 31, 2006 as compared to a decrease of $543,000 during the corresponding quarter last year. As for the year-to-date numbers, net cash decreased $953,000 for the six months ended October 31, 2006, while, for the same period last year, net cash decreased $84,000. Accounts receivable increased $192,000 during the current quarter as compared to a $56,000 decrease for the corresponding quarter last year. The year-to-date figures show a decrease of $88,000 for the current six months and a $94,000 increase for the same period last year. At October 31, 2006, 77.6% of the receivables were considered current (less than 45 days) and 9.6% of the total were over 90 days past due. Inventories increased $267,000 during the current quarter as compared to a $29,000 in- crease last year. The year-to-date numbers show the inventory increased $395,000 for the current year, while it increased $4,000 for the same period last year. There are a couple of reasons for the increase in cash expend- itures towards inventory. First of all, the Company's finished goods stock is finally getting to a comfortable level to be able to ship out product immediately, without having the customer wait a couple of days for the production floor to make the product. Secondly, we have received a $700,000+-keyboard order from Lockheed Martin for the keyboards that the FAA uses. The Company is only able to make approximately (25) keyboards a week, but we have purchased most of all the raw materials to fill the order. At the quarter ended October 31, 2006, there was a $1,000 increase in prepaid expenses while there was a decrease of $8,000 for the corresponding quarter the year before. Changes in prepaid expenses in regards to cash flow de- creased by $17,000 and increased by $74,000 for the six-month periods ending October 31, 2006 and 2005, respectively. At the quarter ended October 31, 2006, accounts payable increased $34,000 as compared to a $73,000 increase for the same quarter the year before. As for year-to-date numbers, there was a $25,000 increase for the six months ended October 31, 2006, and a $39,000 decrease for the same period ended October 31, 2005. Accrued payroll and related expenses increased by $102,000 for the quarter ended October 31, 2006, and these expenses increased $143,000 for the corresponding quarter the year before. As for the six-month period ending October 31, 2006, accrued expenses increased $11,000 and also increased by $32,000 for the same period last year. Income tax payable increased $38,000 for the quarter ended October 31, 2006, as it decreased $484,000 for the quarter ended October 31, 2005. For the six months ended October 31, 2006, income tax payable increased $430,000, as it decreased $24,000 for the corresponding period a year ago. As for the Company's investing activities, there have not been any purchases or sales out of the ordinary during the current quarter. The Company has purchased a couple of fixed assets and continues to put money into buying more marketable securities. As for the year-to-date figures, fiscal year end 2007 shows nothing out of the ordinary, but for fiscal year end 2006 it is again notable to mention the fact that the Company purchased a building for the workers at our Gering, NE facility. This building is bigger than the one we were in before and it was bought in conjunction with a loan/grant that we applied for and received from the City of Gering. This "loan" will be con- verted into grant money if the Company meets all the requirements for adding new employees to the community. Please see the Company's 10QSB for the quarter ended July 31, 2005 for more detailed information. Another large transaction that took place over the six-month period ending October 31, 2005 was that the Company bought back $128,000 worth of common stock. The Company has been actively searching for stockholders that have been "lost" over the years. Many of the original stockholders are deceased and their descendants are choosing to sell the stock in order to clear up the estates, etc. As for the corresponding numbers in this category, $1,000 and $40,000 was spent to purchase back treasury stock for the three and six months ending October 31, 2006, respectively. The following is a list of ratios to help analyze George Risk Industries' performance: For the quarter ended October 31, 2006 2006 --------------------------------- Working capital $ 24,466,000 $ 21,825,000 Current ratio 29.284 33.623 Quick ratio 35.756 30.088
Net sales were $3,631,000 for the quarter ended October 31, 2006, which is a 0.14% decrease from the corresponding quarter last year. Year-to-date net sales were $7,043,000 at October 31, 2006, which is a 0.057% decrease from the same period last year. Cost of goods sold was 47.3% of net sales for the quarter ended October 31, 2006 and 47.7% for the same quarter last year. Year-to-date cost of goods sold percentages were 48.4% for the current six months and 48.1% for the corresponding six months last year. Having rel- atively the same percentage of cost of goods sold from period to period shows that we keep our costs in line. Our goal, as always, is to have a cost of goods sold percentage somewhere between 45% and 50%. As a whole, our cost of materials and direct labor fluctuate in proportion to how our sales vary. Operating expenses were 22.9% of net sales for the quarter ended October 31, 2006 as compared to 22.4% for the corresponding quarter last year. Year-to- date operating expenses were 23.4% of net sales for the six months ended October 31, 2006, while they were 23.1% for the same period last year. Income from operations for the quarter ended October 31, 2006 was at $1,085,000, which is only a 0.28% decrease from the corresponding quarter last year, which had income from operations of $1,088,000. Income from oper- ations for the six months ended October 31, 2006 was at $1,983,000, which is a 2.1% decrease from the corresponding six months last year, which had income from operations of $2,024,000. Other income and expenses showed gains of $297,000 and $341,000 for the quar- ter and six months ended October 31, 2006, respectively. The other income and expense numbers for last year also showed gains of $110,000 for the quar- ter and $241,000 for the six months ending October 31, 2005. Dividend and interest income is up 73.3.6% for the current quarter and is up 43.75% for the current six-month period when comparing to the same time periods last year. We have reorganized the way we are investing by using "money man- ager" accounts. These investment accounts are overseen by money managers affiliated with our brokerage firms. This has seemed to make a positive difference in not accumulating big losses like we have let happen in the past. Also, we have moved over $1,000,000 that we just had sitting in our non-interest-bearing checking account into certificates of deposits and other interest bearing investments. Net income for the quarter ended October 31, 2006 was at $836,000, a 17.6% increase from the corresponding quarter last year, which showed net income of $711,000. Net income for the six months ended October 31, 2006 was $1,380,000, a 4.8% increase from the same period last year. Net income for the six months ended October 31, 2005 was $1,317,000. Earnings per common share for the quarter ended October 31, 2006 was $0.16 per share and $0.26 per share for the year-to-date numbers. EPS for the quarter and six months ended October 31, 2005 was $0.13 per share and $0.25 per share, respectively. A dividend of $0.15 per common share was declared during the current quarter ended October 31, 2006. The dividend was paid to common stockholders of record as of September 30, 2006 and the payment date was October 31, 2006. This is the third year in a row that the Company has paid a dividend to the stockholders and we hope to continue this trend in the future. The reason that there is still a dividend payable on the books as of October 31, 2006 is that we did not have all the information that was needed in order to process checks to some stockholders. Once this information is obtained, a dividend check is sent out if they were a stockholder as of the date of record. George Risk Industries does have three distinct business segments, security alarm products (and other items), keyboard products, and pool alarm products that are subject to disclosure under SFAS No. 131. See the notes to the financial statements in order to examine the segments. Now, here is an update on the progress of some of the Company's new products. The new pool alarm board has been submitted and approved for ETL certifi- cation. The new board will use fewer parts allowing for a more dependable product and an easier piece to produce. This board should be available for delivery to our customers by the first part of 2007. Many states continue to enact legislation mandating door pool alarms for buildings with swimming pool access. This should keep pool alarm sales on a strong growth curve. End of Line (EOL) resistors are getting much more interest in the security industry. Resistors add another line of security when put into a contact switch or as a resistor pack at the end of an alarm zone. Resistors are being mandated in Europe. GRI is one of a few companies that can put EOL resistors in magnetic contacts. Engineering is currently working on a wireless contact switch. Interest in wireless products continues to grow as security dealers look for easier and more aesthetic ways to add security systems to existing buildings. The Company has been adding more distributors (i.e. customers) from the electrical supply area. This will allow the Company to reach a new and much larger group of prospective buyers as compared with others in the security industry. Management is always open to the possibility to acquire a business that would complement our existing operations. This would require no outside financing. The intent is to utilize the equipment, marketing techniques and established customers to increase sales and profits. There are no known seasonal trends with any of our products, since we sell to distributors and OEM manufacturers. The products are tied to the housing industry and will fluctuate with building trends. Item 3 Controls and Procedures (a) Information required by Item 307 Our Chief Executive Officer and our Chief Financial Officer, after evaluating the effectiveness of the Company's "disclosure controls and procedures" (as defined in the Securities Exchange Act of 1934 (Exchange Act) Rules 13a-15(e) or 15d-15(e)) as of the end of the period covered by this quarterly report, have concluded that our disclosure controls and procedures are effective based on their evaluation of these controls and procedures required by para- graph (b) of Exchange Act Rules 13a-15 or 15d-15. (b) Information required by Item 308 This disclosure is not yet required. GEORGE RISK INDUSTRIES, INC. Part II. OTHER INFORMATION Item 1. Legal Proceedings Not applicable Item 2. Changes in Securities Not applicable. Item 3. Defaults upon Senior Securities Not applicable Item 4. Submission of Matters to a Vote of Securities Not applicable Item 5. Other Information Not applicable Item 6. Exhibits and Reports on Form 8-K A. Exhibits 31. Certifications pursuant to Rule 13a-14(a) 31.1 Certification of the Chief Executive Officer 31.2 Certification of the Chief Financial Officer 32. Certifications pursuant to 18 U.S.C. 1350 32.1 Certification of the Chief Executive Officer 32.2 Certification of the Chief Financial Officer B. Reports on Form 8-K No 8-K reports were filed during the quarter ended October 31, 2006. SIGNATURES In accordance with the requirements of the Exchange Act, the registrant caused this report to be signed on its behalf by the undersigned, thereunto duly authorized. George Risk Industries, Inc. (Registrant) Date 12-15-2006 By: /s/ Kenneth R. Risk Kenneth R. Risk President and Chairman of the Board Date 12-15-2006 By: /s/ Stephanie M. Risk Stephanie M. Risk Chief Financial Officer and Controller