George Risk Industries Reports Decline in Q3 Net Sales and Income, Focuses on Product Development

George Risk Industries, Inc. reported its financial results for the third quarter and nine months ended January 31, 2025, revealing a decline in net sales and net income compared to the previous fiscal year. For the quarter, net sales totaled $4.91 million, an 8.94% decrease from $5.39 million in the same period last year. Year-to-date, net sales increased slightly to $16.31 million, up 0.81% from $16.18 million. The company's net income for the quarter was $1.61 million, down 50.39% from $3.24 million a year earlier, while year-to-date net income rose to $6.53 million, a 17.45% increase from $5.56 million.

The company's cost of goods sold (COGS) as a percentage of net sales increased to 53.22% for the quarter, compared to 50.69% in the prior year, reflecting rising labor and material costs. Operating expenses decreased by $40,000 for the quarter but increased by $148,000 year-to-date, with operating expenses representing 22.43% of net sales for the quarter, up from 21.17% a year prior. Income from operations for the quarter was $1.20 million, a 21.21% decrease from $1.52 million in the same quarter last year, while year-to-date income from operations was $4.45 million, down 4.73% from $4.67 million.

In terms of operational developments, the company reported a decrease in accounts receivable by $193,000 and a decrease in inventories by $151,000 during the nine-month period. The federal solar tax credit receivable, resulting from the purchase of transferable tax credits, was recorded at $2.38 million. The company also noted a slight increase in accounts payable, which rose by $57,000, indicating a change in the timing of product receipts and invoice payments.

Looking ahead, George Risk Industries is focusing on enhancing its product lines and exploring potential acquisitions to complement its operations. The company is also investing in automation to improve efficiency and is developing new products, including high-security magnetic contacts and wireless technology solutions. Management anticipates challenges related to inflation and timely product delivery but remains committed to maintaining operational efficiency and customer service excellence. The company declared a dividend of $1.00 per share during the reporting period, reflecting its ongoing commitment to returning value to shareholders.