George Risk Industries, Inc. reported significant financial growth for the quarter ended July 31, 2024, compared to the same period in the previous year. Net sales increased by 22.25%, reaching $5,780,000, up from $4,728,000 in the prior year. This growth was primarily attributed to a strengthened economy and an improved housing market. The company's gross profit also rose to $2,945,000 from $2,266,000, reflecting a decrease in the cost of goods sold percentage from 52.07% to 49.05%. Management successfully maintained labor and manufacturing expenses below 50%, despite ongoing inflation and rising material costs.

Income from operations saw a substantial increase of 49.45%, totaling $1,774,000 compared to $1,187,000 in the same quarter last year. The income from operations related to security alarm products specifically rose to $1,591,000 from $1,065,000. Net income for the quarter was reported at $2,705,000, a 13.94% increase from $2,374,000 in the previous year, with basic and diluted earnings per share both rising to $0.55 from $0.48.

The company’s total assets increased to $64,763,000 as of July 31, 2024, up from $60,780,000 at the end of April 2024. Current assets also rose to $61,716,000 from $57,442,000, with cash and cash equivalents increasing to $9,367,000 from $7,112,000. Total liabilities increased to $7,244,000 from $6,143,000, while total stockholders’ equity grew to $57,519,000 from $54,637,000.

Operating expenses for the quarter increased by $92,000, but the ratio of operating expenses to net sales improved to 20.26% from 22.82%. The provision for income taxes rose to $944,000, reflecting the increased income. The company also reported a net cash increase of $2,255,000 during the quarter, compared to $611,000 in the same quarter last year.

In terms of strategic developments, George Risk Industries is focusing on ramping up production, exploring automation, and developing new products, including explosion-proof contacts and updates to existing security technologies. Management remains open to potential acquisitions to complement existing operations, leveraging a strong cash position for such opportunities. However, the company acknowledged deficiencies in its internal controls due to its small size, which limits the separation of duties, and is committed to improving these controls moving forward.