Document JJJBKoxd4G5eMyKNNrDNygqDO

Riley Stoker Corporation Annual Report For the Year 1951 Officers Fred H. Daniels............................... Chairman and Vice-president Louis E. Griffith......................... President and General Manager David K. Beach...................................... Vice-president and Treasurer Ollison Craig.........................................................................Vice-president Max H. Kuhner...................................................................Vice-president David K. Beach..................................................................................Secretary Directors Fred H. Daniels, Chairman David K. Beach Philip R. Mather Louis E. Griffith George N.Jeppson Chapin Riley Richard J. Rutherford STOKER CORPORATION, WORCESTER 8, MASS. Boston Now York Philadelphia Washington Buffalo Pittsburgh Cleveland New Orleans - Chariotte St. Louis Kansas City St. Paul Tulsa Houston Portland Seattle Detroit Chicago Cincinnati Atlanta Denver Sait Lake City Los Angeles COMPLETE STEAM GENERATING UNITS BOILERS PULVERIZERS BURNERS STOKERS SUPERHEATERS AIR-HEATERS ECONOMIZERS WATER-COOLED FURNACES STEEL-CLAD INSULATED SETTINGS FLUE GAS SCRUBBERS RS-00181S 1/17/02 NUECES TO THE STOCKHOLDERS OF RILEY STOKER CORPORATION: The Riley Stoker Corporation is a Massachusetts corporation owning all of the common voting stock of Badenhausen Corporation of Cornwells Heights, Pennsylvania, and A. W. Cash Company of Decatur, Illinois. The Head Office of the Corporation is at Worcester, Massachu setts, where the Executive, Sales, Engineering, Erection, and Design Departments are located. The products made consist of apparatus for steam generation and fuel burning. The Steam Generators, which include high pressure boilers, waterwalls, superheaters, economizers, and air preheaters, are made at the plant of Badenhausen at Cornwells Heights, Pennsylvania, and the Fuel Burning Equipment, consisting of all types of stokers, coal pulverizers, and burners for all kinds of fuel, are manufactured at the Riley plant in Detroit, Michigan. A. W. Cash Company manufactures and markets pressure regulation valves and combustion control apparatus at its plant in Decatur, Illinois. There is submitted herewith for your consideration the audited Consolidated Balance Sheet as at December 31, 1951, the audited Statements of Consolidated Retained Earnings, Income, and Application of Funds for the year ended December 31, 1951. The net income was 1,239,429.70 after provision for Federal taxes which are estimated at 1,283,500. The capital structure of the Corporation consists of 350,000 shares of Common Stock having a par value of 3.00 per share. The net income per share for 1951 was 3.54, and this compares with similar figures of 2.29 per share for 1950, 4.87 per share for 1949, 7.33 for 1948, and 2.21 for 1947. Dividends of 1.30 per share amounting to 455,000.00 were paid during 1951 on the Common Stock. The increase in net income for 1951 is largely accounted for by increased shipments which were 29 per cent above those for 1950. The dollar volume of shipments during 1951 was almost equal to the two best previous years of 1948 and 1949, and new contract business taken during 1951 was only slightly under the record year of 1950. Unfilled contracts as of December 31, 1951 stood at the highest figure for all time. During 1951 the net current position improved by 779,020.22, and the net quick value per common share amounted to 21.87 as of December 31, 1951. The details of the absorption of the increase in the net current position are shown on the Consolidated Statement of Application of Funds. Short-term bank loans in the amount of 3,020,000 for working capital purposes were negotiated during the year and thus far in 1952 an additional 1,000,000 has been borrowed from the same sources. Net quick assets at December 31,1951 amounted to 7,652,929.49. Your Corporation still continues to receive a large volume of repeat business from satisfied customers in the public utility and industrial fields and a recent order is for one of the largest steam generators ever built, which is to operate at high pressure and superheat. Our Design Department is now set up as a separate division, and it is our constant aim to improve the quality, efficiency, and long-time service of all our various products, which are so essential to the National Defense Program. The over-all Excess Profits Credit situation of the Corporation is good in that only the A. W. Cash Company was subject to the Excess Profits Tax in 1951, and it would appear that the same situation will continue through 1952. Under the proposed regulations in connection with the Renegotiation Act of 1951, the Corporation will probably avoid the necessity of making any rebates of profits accrued during 1951. With the large volume of unfilled contracts on the books and considering the rate at which new business is being currently taken, the outlook for 1952 is satisfactory, in spite of increased corporation taxes, the unsettled wage and price situation in the steel industry, price controls, wage and salary stabilization, limitations on the supply of materials and possible renegotiation. We again acknowledge with appreciation the effective cooperation of our employees, customers, and suppliers during the past year, and the continued support and interest of our stockholders. Yours very truly, F. H. Daniels, Chairman Worcester, Massachusetts March 28, 1952 L. E. Griffith, President RS-001816 1/17/02 NUECES Consolidated Statement of Application of Funds For the Year Ended December 31, 1951 Funds Provided Net Income................................................................................................................................... $1,239,429.70 Add: Charges against income which require no cash outlay Depreciation............................................................................................... $137,204.32 Less: Gain from Sale of Fixed Assets..................................................... .................1,411.47 135,792.85 Proceeds from Sale of Assets..................................................................................................... 2,155.00 Adjustment of Taxes and Miscellaneous Other Items........................................................... .................. 4,704.09 Total Funds Provided............................................................................................... $1,382,081.64 Funds Applied Additions to Fixed Assets ....................................................................... Dividends on Common Stock....................................................................... $148,061.42 455,000.00 603,061.42 Increase in Working Capital $779,020.22 Changes in Working Capital for the Year Increase in U.S. Treasury Bills.................................... Notes and Accounts Receivable Inventories................................................ Other Assets................................................ Less: Increase in Bank Loans.......................................................................................................$3,020,000.00 Other Liabilities...................................................... 954,639.52 Federal Income and Excess Profits Taxes........................................ 915,726.79 $1,299,643.62 2,613,468.05 1,362,574.58 393,700.28 $5,669,386.53 4,890,366.31 Increase in Working Capital (As above) $779,020.22 To the Board of Directors Riley Stoker Corporation Worcester 8, Massachusetts We have examined the consolidated balance sheet of the Riley Stoker Corporation and its subsidiary companies as at December 31, 1951, and the related statements of consolidated income and retained invested earnings for the year ended at that date. Our examination was made in accordance with generally accepted auditing standards, and accordingly included such tests of the accounting records and such other auditing procedures as we considered necessary in the circumstances. In our opinion, the accompanying consolidated balance sheet and statements of consolidated income and retained invested earnings present fairly the financial position of Riley Stoker Corpora tion and its subsidiary companies at December 31, 1951 and the results of their operations for the year ended at that date, in conformity with generally accepted accounting principles applied on a basis consistent with that of the preceding year. Worcester, Massachusetts March 18, 1952 George A. Smith and Company, Certified Public Accountants RS-001817 1117/02 NUECES Other Asset . . . .s Securities Acquired vr -T3 > z c nc7> b fa 2 > v> 0 > o on ^ oo ^ "0 v> -i t1/j 3,622.95 g l 5,8 73~524.51 IR e t a in e d n v e s t e d E a r n in g s -- Per Attached Statement . PS r> zo zm-z4nn *< c/5 H O P* m pi no oo O' j-- t* ro nC -- -P- 4 O "V O "--co 4NvO> NJ 4o "o,O' ON -- ON NO O NO On Ln csj 4- ON <-n o Z ^0 oO 5r p>i 0> SH H)-H sw O 1a pj >73 CC ~> 5Ln r^ ~ zn w C/3 E w ^ o 1/3 a 03 82 2 > 1 *< on >03 > Z cm/3 W 05 S On 00 -J O' On cc pio o8 NO Ln Co c NO 8,203,098.06 ~ g l5 ,873,524.51 Statement of Consolidated Earnings For the Year Ended December 31, 1951 Retained Invested Earnings Balance, December 31, 1950 ..................................................... Add: Prior Years' Federal, State and Miscellaneous Adjustments Net Income for Year........................................................... Deduct: Dividends on Common Stock Balance, December 31, 1951 37,413,964.27 4,704.09 1,239,429.70 38.658.098.06 455,000.00 38.203.098.06 Consolidated Statement of Income For the Year Ended December 31, 1951 Income from Operations after selling and administrative expenses, but before depreciation Depreciation........................................................................................................................... Operating Income..................................................................................................................... Other Income........................................................................................................................... Other Deductions..................................................................................................................... Income before Federal Income and Excess Profits Taxes ................................... Provision for Federal Income and Excess Profits Taxes..................................................... Net Income for Year................................................................................................................ 32,659,023.65 137,204.32 32,521,819.33 47,018.46 32,568,837.79 45,908.09 32.522.929.70 1,283,500.00 31.239.429.70 RS-001820 1/17/02 NUECES