Document LKb0KaLnvjZGpd2jQr1ZxoEKQ

FOR THE TEAR ENDED DECEMBER|31,1955 L RILEY STOKER CORPORATION Worcester, Massachusetts, U. S. A. For our 1955 Annual Report cover we selected the colorful Riley Reheat Unit : at the Ninemile Point Station of Louisiana Power & Light Co. near New Orleans. Color is obtained by a novel use of porce[ lainized lagging with harmonious coloring of structural steel and turbines. This unit generates over 1,000,000 pounds of steam per hour. 1,250,000 pounds of steam per hour at a pressure of 2,125 pounds per square inch and at a temperature of 1000 degrees fahrenheit are generated by the Riley Reheat Unit at Houston Lighting and Power Company's Deepwater Generating Station. A similar unit is nearing comple tion at another generating station of this progressive public utility. They are the largest Riley units to be built to date. Even with extensive hydro-electric facil ities available nearby steam generated power is still needed by the Southern Nevada Power Co. This Riley unit is completely outdoors. Elevators carry oper ating personnel to various levels. A tele vision antenna is erected on top of the unit. S?frys& ill Riley Products for Public Utility and Industrial Power and Heating Plants include complete steam generating units and a wide variety of fuel burning equip ment for firing practically any fuel. Steam Generating Equipment Steam Generators Waste Heat Boilers Superheaters: Convection, Radiant Airheaters Economizers Steel-clad Settings Water-cooled Furnaces Fuel Burning Equipment Coal Pulverizers Spreader Stokers Coal, Oil and Gas Burners Traveling Grate Stokers Oscillating Grate Stokers Multiple Retort Stokers Single Retort Stokers Refuse Fuel Burning Equipment i RS-001718 1/17/02 NUECES Officers and Directors of Riley Stoker Corporation Officers Fred H. Daniels . Chairman and Vice-president Louis E. Griffith . President and General Manager David K. Beach . Vice-president, Treasurer, Secretary Ollison Craig Vice-president Robert J. Krieger Vice-president--Sales Max H. Kuhner . Vice-president--Engineering Franklin G. Treat . Vice-president--Manufacturing Directors Fred H. Daniels, Chairman David K. Beach Louis E. Griffith Chapin Riley Philip R. Mather Robert S. Bowditch Richard J. Rutherford RS401716 1/17/02 NUECES To the shareholders of Riley Stoker Corporation Submitted herewith for your consideration is the audited Consolidated Balance Sheet as at December 31, 1955, the audited Statements of Consolidated Earnings, Income and Application of Funds of Riley Stoker Corpo ration for the year ended December 31, 1955. These consolidated statements include the operating figures for the parent company, Riley Stoker Corporation, Worcester, Massachusetts, and Detroit, Michigan, consolidated with the operating figures of the two wholly owned sub sidiaries, Badenhausen Corporation, Cornwells Heights, Pennsylvania, and A. W. Cash Company, Decatur, Illinois. Sales (shipments) for 1955 were substantially the same as those for 1954, while Net Income after Federal Taxes is considerably lower. A number of factors account for this situation; the chief one is the cost of design, development and sale of Riley Steam Generating Units during the last two years involving high steam pressure, high temperature, reheat and of much larger size than anything previously builc by your Corporation. Recently we have put into operation and thoroughly tested several Riley Steam Generating Units equipped with a novel combustion device called "Turbo Furnace". This furnace can handle and burn efficiently a wide range of solid, gaseous and liquid fuels in any com bination desired. Elsewhere in this Annual Report you will find illustrations of large Riley Steam Generators and Riley Turbo Furnaces. During the last two years much design and engineer ing work have gone into the fuel burning end of our business. Two types of Riley Spreader Stoker Feeders have been developed, one designed primarily for coal and the other to burn refuse fuels such as bark, bagasse and other cellulose fuels like sawdust, wood chips, etc. These feeders can be combined with four different types of grates depending upon the type of fuel to be used. One type is the Riley Oscillating Grate that operaces on an entirely novel principle of moving the fuel along the grate surface. The addicion of a hopper in front of this grate makes up the new Riley Oscillating Stoker that is sure to have an excellent future market. Some of these fuel burning designs are shown herein. All of these new developments are departures from designs that Riley has been making in the past and development and manufacturing costs have been higher than anticipated. Approximately $1,000,000 has been committed for another building, new shop equipment and methods. A complete program of cost reduction has been established. These big steam generating units take a long time to complete. Most of the large units were actually sold in 1953 and 1954 when both prices and volume of business available to our industry were depressed. Unfilled contract business amounts to approxi mately $38,000,000. It is our expectation that by reason of manufacturing improvements already made and to be made that this work can be profiably executed. New contract business closed during 1955 made a new record and amounted to $29,473,000. While on the subject of unfilled orders, our asso ciates and manufacturing licensees in England, Australia, Canada, France, Sweden and Belgium report that they have a tocal of unfilled contracts for Riley Equipment that exceeds $60,000,000. On the basis that no more new business is received by these licensees for Riley Products, Riley Stoker Corporation is entitled to receive, as the work is completed, engineering fees equal to approxi mately $1,278,000. Under normal conditions this should come in over a period of the nexc three or four years with some of the large steam generating units in England not to be completed until I960. Your corporation has issued and outstanding 350,000 common shares of a par value of $3.00 per share. As of December 31, 1955 the Book Value per share was $28.42 and the Net Current Assets amounted to $21.31 per share. The prospects for 1956 look encouraging in thac a large volume of business will be obtained for the various new products. We are taking new business at approximately the rate that we are shipping and the volume of unfilled business has stayed at approximately the same point for a period of one year. We again acknowledge with much appreciation the loyalty and effective cooperation of our employees, cus tomers and suppliers and the continued support and interest of our Stockholders. By order of the Board of Directors: Chairman March 31, 1956 President RS-001717 1/17102 NUECES For the year ended December 31, 1955 RILEY AND SUBSIDIARY COMPANIES STATEMENT OF CONSOLIDATED EARNINGS Retained Invested Earnings Balance, December 31, 1954 Add: Net Income for Year Adjustment of Prior Years' Fixed Assets Deduct: Dividends on Common Stock Additional 1954 Federal and State Income Taxes -- Resulting from Repeal of Sections 452 and 462 of the Internal Revenue Code Additional Prior Years' State and Federal Taxes Balance, December 31, 1955 $222,126.29 2`,331.11 $490,000.00 302,611.49 9,010.85 $9,447,537 62 224,457.40 $9,671,995.02 801,622.34 $8,870,372.68 CONSOLIDATED STATEMENT OF IN COME Sales Cost of Sales Gross Profit Selling Expenses Administrative Expenses Operating Income Other Income $1,506,803.39 1,416,267.21 Other Deductions Profit before Federal Taxes on Income Provision for Federal Taxes on Income Net Income for Year Costs and expenses include provision for depreciation and amortization in the amount of $345,762.14. $29,160,108.45 25,894,623.38 $ 3,265,485.07 2,923,070.60 $ 342,414.47 288,675.45 $ 631,089.92 232,525.40 $ 398,564.52 176,438.23 $ 222,126.29 RS-001718 1/17/02 NUECES 27,933.12 to CN n co mt* con m iO *0 ^ o' CN CN cn o coo ofN CS fs 'O o o' ND O CO >-- ^ o <o o CN CO CN VO r-- CN ACQUIRED P A ID -IN C A P ITA L (N o Change D uring Y e a r) 111 X VO Ul o Z < F < GQ a in > co < M Z> a to m to Z o v o L<0Ou) "o U c eoa CTV C >u too O E LU 4) .VCO z8 Ui CO 2~ HS >> vn i-- LU i/1 i/1 < ,0 o g> O Z oac; 3 U 0 -ca 41 o _C 4c> 6 S *0 c 4) o < X a j* 0 ? at _c 41 4> c o `5> c > -o LU < 3 u "a o T3 'a4a). a. 8 IS CO CO s$ "* r- <E u < go New Products Highlight 1955 Sales... THE RILEY OSCILLATING GRATE and THE RILEY TURBO FURNACE JVIuCH of what you pay for electricity is based on the cost of steam generation to drive the turbines in the public utility power plant. Power engineers are constantly seeking ways by which this cost can be reduced. Modern boilers and steam turbines are today so efficient that future cost reductions must be measured in thousandths of a cent per kilowatt. To a power engineer economical utilization of fuels is a most significant cost saving item. As more types of fuels are made available to him the more flexible is his position in respect to taking advantage of their availability and their fluctuations in costs. Because of this, steam generating equipment de signed for multiple fuels is being purchased for most public utility central stations and for many industrial power and heating plants. In 1955 Riley sold several of both the new TURBO FURNACE and the new OSCILLATING GRATE STOKER each in itself offering new advances in the utilization of fuels. The Riley Oscillating Grate Stoker The new Oscillating Grate Stoker, a self cleaning stoker, has gained wide interest among power engineers because of its unusual economy. A number already have been sold or installed. The Oscillating Grate is shop assembled, is easily shipped, and can be quickly installed. It has no gear driven parts and is powered by a small electric motor. This motor drives an eccentric weight mounted on the grate chassis which imparts an oscil lating motion to the grate surface. This motion causes the fuel bed to travel to the ash discharge end of the stoker. A Riley Oscillating Stoker is now being tested by Bituminous Coal Research, Inc., at their laboratories at Columbus, Ohio. What they are looking for is a device that will not only feed the coal to the stoker, but automatically take the ashes away and deposit them in a suitable container for later removal. This develop ment work is primarily for the purpose of recovering some of the market formerly held by coal, but now taken away by oil or gas fuels. Last year the production and use of coal increased materially over the year 1954 and the sales demand for stokers is definitely on the increase. A significant development uses the Riley Oscillating Grate with a package type boiler. This Oscillating Grate fired boiler is the first in the field of shop-assembled, portable coal fired package boilers. The first unit of this type using a Riley stoker was tested by the U. S. Navy in 1955. It is designed primarily for coal, but conver sion to oil or gas firing can be accom plished during a weekend. NUECE8 CONSOLIDATED STATEMENT OF APPLICATION OF FUNDS For the Year Ended December 31, 1955 Funds Applied Dividends on Common Stock Additions to Fixed Assets Purchase of Stock of Other Corporations Additional Prior Years' Federal and State Taxes Expenses Charged to Reserve for Expenses Total Funds Applied Funds Provided Net Income for Year Add: Items Requiring No Cash Outlay Depreciation and Amortization Less: Gain on Sale of Capital Assets Proceeds from Sale of Capital Assets Total Funds Provided $345,762.14 3,298.15 Decrease in Working Capital Changes in Working Capital for the Year Decrease in Notes and Accounts Receivable Inventories Increase in Accounts Payable Advance Billings and Accrued Liabilities Less: Increase in Other Assets Decrease in Federal Taxes on Income Decrease in Notes Payable Decrease in Working Capital (As above) $ 490,000.00 542,816.69 12,683.13 311,622.34 44,937.33 $ 1,402,059.49 $ 222,126.29 342,463.99 4,839.00 569,429.28 $ 832,630.21 $1,300,546.66 269,232.14 665,000.00 $ 1,480,343.12 615,509.82 685,317.03 286,239.04 3,067,409.01 2,234,778.80 $ 832,630.21 To The Board of Directors Riley Stoker Corporation Worcester 8, Massachusetts We have examined the consolidated balance sheet of Riley Stoker Corporation and its Subsidiaries at December 31/ 1955 and the related statements of consolidated income and retained invested earnings for the year then ended. Our examine* tion 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 the related statements of consolidated income and retained invested earnings present fairly the financial position of Riley Stoker Corporation and its Subsidiaries at December 31, 1955, and the results of their operations for the year then ended, in conformity with generally acceptedaccounting principles applied on a basis consistent with that of the preceding year. GEORGE A. SMITH AND COMPANY Certified Public Accountants Worcester, Massachusetts March 27, 1956 RS-001721 1/17/02 NUECES RIEEY TURBO FURNACE The conventional types of Riley Steam Generating Units designed for pulverized coal, oil or gas fires its fuel high up in the side of the furnace. Ash is collected in a hopper at bottom of furnace. This is called a dry-bottom furnace. The Riley TURBO FURNACE is a new type of slagging bottom or wet bottom furnace. It was developed originally to solve two prob lems; the first to effectively burn low grade coal from Nova Scotia; the second -- to reburn carbon in ash and to turn ash to molten slag -- to eliminate a costly flyash disposal problem for a leading chemical company in -two of its West Virginia plants. In addition to its flexible fuel burning features, other significant operat ing characteristics long desired by power engi neers have resulted from this unique design. As a result, three 500,000 Ib/hr. TURBO FURNACE Units were purchased by Delaware Power & Light Company to use the hard-toburn fluid coke from Tide Water Associated Oil Company's new refinery at Delaware City, Delaware. Louisiana Power and Light Company ordered a 1,550,000 lb/hr. Reheat TURBO FURNACE Unit to fire oil and gas initially, but to fire a coal or fluid coke at a future date. Texas Electric Service Company's 825,000 lb/hr. Reheat TURBO FURNACE Unit will fire oil and gas initially, but it is possible to burn pulverized coal at a later date. Because of their ability to pulverize most solid fuels Riley Pulverizers will in all proba bility be specified for every TURBO FURNACE Unit. In addition a new type burner developed by Riley is part of each TURBO FURNACE order. It can be furnished with complete auto matic controls for remote operation. Because of its outstanding economy features ^ Riley looks forward to a rapidly growing accept ance of the TURBO FURNACE with a con sequent increase in sales volume. efficiently burns a wide range of coals, delayed coke, petroleum, coke, oil & gas In spite of their definite advantages in respect to more efficient fuel burning, it is not expected that the TURBO FURNACE Steam Generating Unit, or the OSCILLATING GRATE STOKER will supplant conventional Riley dry bottom type steam generating units or other various designs of Riley stokers. Im provements in design in these highly efficient products will continue with an expected satis factory volume of sales. A FEW RILEY FUEL BURNING PRODUCTS MANUFACTURED AT RILEY'S DETROIT, MICHIGAN PLANT Riley Flare Type Burn ers are furnished for firing pulverized coal, oil, gas or a combina tion of the three. As many as twenty-four of these burners fire the largest Riley Steam Generating Units. Riley Coal Pulverizers such as this prepare coal for firing through Riley Burners. Large amounts of tungsten carbide are used in these pulveriz ers to resist wear. Coal is reduced by attrition to proper firing fineness. This is a Riley Ball Tube Mill installation -- an other type of Riley coal pulverizer. Coal is ground to talcum pow der fineness by tons of steel balls tumbling in a huge rotating drum. Above -- Diagrammatic cross section of the design of the TURBO FURNACE Units for Delaware Power & Light Company. At Left -- General layout of the Delaware City Power Plant of Delaware Power & Light Company. Fluid Coke will be pneumatically transported to plant from the huge new Fluid Cracking Unit of Tide Water Associated Oil Company's 130,000 barrel-per-day re finery located nearby. A typical Riley Travel ing Grate Spreader Stoker installation. Riley spreader stokers are famous for their high operating efficiency and low maintenance. They are used under boilers with steam generating capacities up to 300,000 lbs/hr. MAJORITY OF RILEY USERS ARE WELL KNOWN COMPANIES IN THE MAJOR INDUSTRIAL CLASSIFICATIONS . . CHEMICALS AND OILS Carbide & Carbon Chemicals Co. Esso Standard Oil Co. Magnolia Petroleum Co. Anglo-lranian Oil Co. B. F. Goodrich Chemical Co. Columbia Southern Chemical Co. Hooker Electrochemical Co. Reilly Tar & Chemical Co. Humble Oil & Refining Co. Bahrein Petroleum Co., Ltd. Standard Vacuum Oil Co. Commercial Solvents Corp. The Dow Chemical Co. E. I. Dupont de Nemours Co. Shell Oil Co. Penn. Salt Co. Calco Chemical Div. American Viscose Co. Mathieson Alkali Co. Spencer Chemical Co. Publicker Industries Standard Oil of Ind. American Viscose Corp. American Cyanamid Co. Monsanto Chemical Co. Electro-Metallurgical Co. Standard Oil of Calif. Phillips Petroleum Co. PUBLIC UTILITIES Houston Lighting & Power Co. City of Los Angeles, Dept, of Water and Power New Orleans Public Service Co. Monongahela Power Company Southwestern Gas & Electric Co. Public Service Co. of Indiana, Inc. Columbus & Southern Ohio Electric Co. South Carolina Electric & Gas Co. Northern Virginia Power Co. Southwestern Public Service Co. Union Electric Co. of Illinois Dairyland Power Cooperative Taiwan Power Co. (Formosa) lowa-lllinois Gas & Electric Co. Montana-Dakota Utilities Co. Delaware Power & Light Co. Minnesota Power & Light Co. Dallas Power Light Co. Texas Electric Service Co. Louisiana Power Light Co. Potomac Edison Co. West Penn Power Co. Arkansas Power Light Co. Utah Power Light Co. Florida Power Corporation Florida Power Light Co. Central Illinois Light Co. Southern Nevada Power Co. Northern States Power Co. Commonwealth Edison Co. Gulf Power Co. Pennsylvania Electric Co. Interstate Power Co. Salt River Power Project Philadelphia Electric Corp. METALS Eagle Pitcher Lead Co. White Pine Copper Co. Aluminum Industries Calumet & Hecla Consol. Copper Co. Nevada Consolidated Copper Co. American Steel & Wire Co. Chase Brass & Copper Co. Colorado Fuel Iron Co. Jones & Laughlin Steel Corp. Revere Copper Brass Co. U. S. Steel Corp. American Brass Co. Scovill Mfg. Co. National Lead Co. Republic Steel Co. Detroit Steel Corp. Lone Star Steel Co. Kennecott Copper Co. U. S. Vanadium Corp. Great Lakes Steel Co. Alan Wood Steel Co. Wisconsin Steel Co. PAPER AND WOOD PULP Northern Paper Mills Gaylord Container Co. Bemis Bros. Bag Co. Crystal Tissue Paper Co. Frost White Paper Mills Penobscot Chemical Fibre Co. Whippany Paper Co. Champion Paper & Fiber Co. Lawless Bros. Paper Mills Waldorf Paper Products Co. Champion International Co. John A. Manning Paper Co. Mead Corp. The Flintkote Co. St. Croix Paper Co. Bird & Sons Morris Paper Mills Scott Paper Co. Alton Boxboard Co. Masonite Corp. Rayonier, Inc. Container Corp. Fort Orange Paper Co. Columbia Boxboard Co. OTHER MANUFACTURING Owens-Illinois Glass Co. The Bullard Co. Continental Can Co. General Electric Co. Western Electric Co. General Motors Corp. Diamond Match Co. Weston Cartridge Co. B. F. Goodrich Westclox Div. Norton Co. U. S. Rubber Co. Fisher Body Oiv. Chrysler Corp. Nicholson File Co. Boeing Aircraft RILEY STOKER CORPORATION MAIN OFFICE-WORCESTER, MASSACHUSETTS Manufacturing Plants CONRWELLS HEIGHTS, PENNSYLVANIA Steam Generating Equipment DETROIT, MICHIGAN Fuel Burning Equipment DECATUR, ILLINOIS (A. W. Cash Co.) Pressure and Temperature Regulating Valves Combustion Control Apparatus Sales Offices Atlanta, Boston, Buffalo, Charlotte, Chicago, Cincinnati, Cleveland, Denver, Detroit, Houston, Kansas City, Los Angeles, Milwaukee, New Orleans, New York, Philadelphia, Pittsburgh, Portland (Oregon), St. Louis, St. Paul, Salt Lake City, San Francisco, Washington Licensed Manufacturing Associates BRITISH COMMONWEALTH OF NATIONS Except Australia, Canada, India, New Zealand, Pakistan John Brown Land Boilers Limited AUSTRALIA AND NEW ZEALAND Riley Dodds Australia Limited CANADA Foster Wheeler Limited EUROPE Except Belgium Steam Generating Equipment John Brown Land Boilers Limited Fuel Burning Equipment Fama, France BELGIUM Belgium Congo and Grand Duchy of Luxembourg Chaudronneries Pierre Brouhon ,, .,, Overseas Agents RS-001725 1/17/02 NUECES CUBA William A. Powe COLOMBIA C. E. Halaby Co., Ltd. URUGUAY J. Felix Castillo, Jr. VENEZUELA Oficina Tecnica Stubbins MEXICO AND CENTRAL AMERICA Andres Araujo y Cia de R. L. ARGENTINA Sociedad Argentina Tecnica Industrial y Comercial, S. A. PUERTO RICO AND DOMINICAN REPUBLIC Abarca Warehouses, Inc. HAWAII Electric Steel Foundry Co. ISLAND OF MAURITIUS Rey Lenferna, Ltd. TAIWAN AND OTHER PARTS OF NATIONALIST CHINA William Hunt Co. (International) Inc. PHILIPPINES Atlantic, Gulf and Pacific Co. SWEDEN Ab Svenska Maskinverken