Document byZvmxrGqbd94VoDoawBxwkmZ

" Jr ' l I.M,*w- ' MB I 'Z'lii-f.'-:- Va, ; fn. :#:r V-` ;.4: i v/vfc.Y-.' *'% *?.*r :;|SS!Sfe y$w$ LJfe art Annual Report RILEY STOKER CORPORATION WORCESTER, MASSACHUSETTS, U. S. A. f ft'll ? '!k*'r! ^ iV '' 'h^ I--' - FOR THE YEAR ENDED DECEMBER 31,1952 L4T ,<U. ^,.'k.--' " -i>v rs-ooimo 1/17/02 NUECES 7. \ .*V Over-all Height 143 3 ---about the height of a 14-story building yr/'i; / RILEY tubular Air Heater ,, ,, preheats air for combustion and reduces loss up stack. Over 35 miles* of 2)4 diameter' steel tubing required ***#>< yr% ,w/ ^o% iler Drum "-k 66*$ Diameter ,>3A^Thick .Weight approx. 70 Jons 9?t fi *M*P?** i* v < ls RILEY Economizer heats the water before ^entering boiler %~- 30'-4)4" wide x 2 3'-O" deep lined with 2)4" diameter, ,, tangent tubes. Total length wall tubes approx. 8 miles ;c RILEY Pulverized Coal Burners Zv vtWl /r** . Typical Riley Public Utility Steam Generating Unit This unit is installed at Central Illinois Light Co., Peoria, Illinois It is the sixth Riley Unit installed by this Company The unit generates 600,000 lbs. of steam per hour at 950 lbs. pressure and at a temperature of 900 fahrenheit ( L R3-001847 1/17/02 NUECES Riley Stoker Corporation Annual Report For the Year 1952 Fred H. Daniels Louis E. Griffith David E. Beach Oluson Craig L Kuhner Officers Chairman and Vice-president President and General Manager Vice-president and Treasurer ........................ Vice-president ........................ Vice-president 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, Massachusetts, 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, 1952, the audited Statements of Consolidated Retained Earnings, Income, and Application of Funds for the year ended December 31, 1952. The net income was $1,324,188.20 after adequate provision for Federal Taxes, which are estimated at $1,438,250. 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 1952 was $3.78, and this compares with similar figures of $3.54 per share for 1951, $2.29 for 1950, $4.87 for 1949, and $7.33 for 1948. The net income per share for 1952 was exceeded in the past only for the years 1948 and 1949. Sales (Billings) were higher than in any previous yearand this was accomplished in spite of a two-months strike at the Cornwells Heights plant. The increase in net income during 1952 is largely accounted for by increased sales which were about 24 per cent above those of 1951. New contract business taken in 1952 was at a record high and the volume of new business received in the first quarter of 1953 was very much higher than that for any previous quarter year. Unfilled contracts as of December 31, 1952 stood at the highest figure for all time. Dividends of 30 cents per share were paid in each of the first three quarters of 1952 and 40 cents per share was paid in the fourth quarter, making a total of $1.30 per share for 1952. A dividend of 40 cents per share was also paid on March 13, 1953. Net quick assets on December 31, 1952 amounted to $8,413,644.56 which made the net quick value per common share $24.04. During 1952 the net current position improved by $760,715.07. There was appropriated from Retained Invested Earnings an additional amount of $100,000 for the Reserve for Contingencies and a new Reserve for Building Fund of $200,000 was also provided. This made the Stockholders' Investment exclusive of the above reserves $9,872,024.70 which makes the book value per share of common stock $28.21. Because of the continuing demand for electric energy in connection with the defense programs, your Corporation has applied to the Defense Production Administration for a Certificate of Necessity to cover a one-third expansion in the facilities of the Badenhausen plant at Cornwells Heights, Pa. The machine tools and materials-handling equipment to be added will result in lower manufacturing costs and improved production efficiency. Additional laboratory facilities will give an even closer check on the quality of incoming materials. As was the case in 1951, only A. W. Cash Company was subject to the Excess Profits Tax in 1952 and under present law this particular tax ceases on July 1, 1953. All price controls have been recently abolished so that your Corporation will be able to recover all increases in materials and labor costs under the escalation clauses contained in our contracts. Riley Stoker Corporation may be subject to Renegotiation proceedings to cover sales made in 1952 to the various government depart ments. No reserve to cover possible refunds has been set up since the amount involved cannot be determined at this time. With the large volume of unfilled business in hand and in view of the rate at which new business is being taken, the outlook for this year is good provided there are no interruptions caused by labor difficulties affecting our suppliers or in connection with our own production. At present it appears likely it will be much easier in the last half of this year to satisfy our requirements for raw materials. We again acknowledge with appreciation the effective cooperation of our employees, cus tomers, and suppliers during the past year and the continued support and interest of our stockholders. By order of the Board of Directors, Jr |i, Worcester, Massachusetts March 30, 1953 President Riley Stoker Corporation CONSOLIOA r )) December Current Assets ASSETS Cash....................................................................................................................... $378,454.70 U. S. Treasury Bills--Due January 2, 1953--At Cost................................... 799,915.55 Notes and Accounts Receivable (Less Reserve $33,120.90)........................ 8,276,553.29 Inventories (Priced at Cost or Lower)........................................................... 5,022,599.12 Engineering Work in Process............................................................................. 609,906.22 Advances and Sundry Receivables................................................................. 202,909.31 Prepaid Insurance, Taxes and Other Expenses......................................... 400,839.94 Total Current Assets...........................................................................................$15,691,178.13 Employees'Cash--Savings Bond Account(See Contra) . 3,998.11 Fixed Assets Land......................................................................................... $220,210.15 Buildings............................................................................. 1,837,219.99 Machinery and Equipment................................................ 2,221,975.23 Buildings and Machinery Under Construction .... 6,966.16 $4,286,371.53 Less: Reserve for Depreciation.......................................... 2,383,343.92 1,903,027.61 Patents--At Cost Less Amortization................................................................. 1,729.58 Securities Acquired......................................................................................... 3,622.95 $17,603,556.38 R8-001651 1/17/02 NUECES ) nd Subsidiary Companies ? yUNCK SHEET , 1^52 Current Liabilities LIABILITIES Notes Payable--Banks................................................................................... $3,130,000.00 Accounts Payable--Trade, Etc........................................................................... 1,082,271.73 Advance Billing on Contracts............................................................................. 1,020,848.39 Accrued Items Wages ............................................................................. $160,329.92 Commissions............................................................................. 185,834.10 State and Other Taxes........................................................... 259,999.43 606,163.45 Federal Taxes on Income . 1,438,250.00 Total Current Liabilities $7,277,533.57 Employees' Savings Bond Collections (See Contra) 3,998.11 Reserves For Contingencies................................................................. For Building Fund................................................................. $250,000.00 200,000.00 450,000.00 Stockholders' Investment Common Stock, Par Value $3.00 per share Authorized and Issued, 350,000 shares........................................................... 1,050,000.00 Acquired Paid in Capital (No change during year)................................... 27,933.12 Retained Invested Earnings--Per Attached Statement 8,794,091.58 $17,603,556.38 RS-0010S2 1/17/02 NUECES Statement of Consolidated Earnings For the Year Ended December 31,1952 Retained Invested Earnings Balance, December 31, 1951 ............................................................................. Add: Net Income for Year..................................................... $1,324,188.20 Items Capitalized by Internal Revenue Department 41,132.02 Prior Year's Federal, State and Miscellaneous Adjustments 3,538.35 Deduct: Additional Federal Income Tax for Prior Year Dividends on Common Stock.......................................... Transfer to Reserve for Building Fund........................ Transfer to Reserve for Contingencies........................ $22,865.05 455,000.00 200,000.00 100,000.00 Balance, December 31, 1952 ............................................................................. 18,203,098.06 1,368,858.57 $9,571,956.63 777,865.05 $8,794,091.58 Consolidated Statement of Income For the Year Ended December 31,1952 Sales..............................................................................................................................$24,238,990.00 Cost of Sales..................................................................................................... 19,201,034.28 Gross Profit........................................................................................................... $5,037,955.72 Selling Expenses................................................................. $1,252,744.64 Administrative Expenses ............................................... 1,056,308.73 2,309,053.37 Operating Income............................................................................................... $2,728,902.35 Other Income..................................................................................................... Other Deductions............................................................................................... 135,064.32 $2,863,966.67 101,528.47 Profit Before Federal Taxes on Income..................................................... $2,762,438.20 Provision for Federal Taxes on Income....................................v . . 1,438,250.00 Net Income for Year......................................................................................... $1,324,188.20 Costs and expenses include provision for depreciation and amortization of $154,399.55. u RS-001683 1/17/02 NUECES Consolidated Statement of Application of Funds For the Year Ended December 31,1952 Funds Provided Net Income........................................................................................................... Add: Charges Against Income Which Require No Cash Outlay Depreciation........................................................... $154,399.55 Less: Gain from Sale of Fixed Assets .... 4,270.98 Proceeds from Sale of Fixed Assets................................................................. Adjustment of Taxes and Miscellaneous Items................................................ Total Funds Provided............................................................................. $1,324,188.20 150,128.57 9,130.00 3,538.35 $1,486,985.12 Funds Applied Additional Federal Income Tax for Prior Year .... Additions to Fixed Assets ......................................... . . Dividends on Common Stock............................................... $22,8(55.05 248,405.00 455,000.00 726,270.05 Increase in Working Capital $760,715.07 Changes in Working Capital for the Year Increase in Notes and Accounts Receivable Inventories............................................... Less: Decrease in Other Assets......................................... Increase in Bank Loans........................................................... Other Liabilities..................................................... Federal Taxes on Income................................... $679,760.28 $1,460,346.63 821,292.01 $2,281,638.64 110,000.00 576,413.29 154,750.00 1,520,923.57 Increase in Working Capital (As above) $760,715.07 To the Board of Directors Riley Stoker Corporation Worcester, Massachusetts We have examined the consolidated balance sheet of the Riley Stoker Corporation and its subsidiary com panies as at December 31, 1952, 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 Corporation and its subsidiary companies at December 31, 1952 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. George A. Smith and Company, Worcester, Massachusetts March 24, 1953 Certified Public Accountants RS-001654 1/17/02 NUECES CHEMICALS AND OILS METALS PUBLIC UTILITIES FOOD AND PROCESSING A Few Well-known Users Shell Oil Co. Penn Salt Co. Dow Chemical 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. Esso Standard Oil Co. Magnolia Petroleum Co. Anglo-Iranian Oil Co. Arabian-American Co. Carbide & Carbon Chemical Div. Columbia Southern Chemical Co. Celanese Corp. of America Hooker Electrochemical Co. Rielly Tar & Chemical Co. Humble Oil & Refining Co. Bahrein Petroleum Co., Ltd. Standard Vacuum Oil Co. Commercial Solvents Corp. 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. Eagle Pitcher Lead Co. White Pine Copper Co. Calumet & Helca 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. Gulf Power Co. Ohio Edison Co. West Penn Power Co. Otter Tail Power Co. Mississippi Power Co. Louisiana Power Co. Interstate Power Co. Monongahela Power Co. Central Illinois Light Co. Utah Power & Light Co. The Potomac Edison Co. Public Service Co. of Ind. Northern Virginia Power Co. Pennsylvania Electric Co. Worcester County Electric Co. Union Electric Co. of 111. Superior Water, Light & Power Co. Texas Electric Service Co. Central Ohio Light & Power Co. Florida Power & Light Co. Iowa-Illinois Gas & Electric Co. Dallas Power and Light Co. Iowa Elect. Light & Power Co. Arkansas Power & Light Co. Houston Lighting & Power Co. S. Carolina Elect. & Gas Co. New Orleans Public Service Co. Northern States Power Co. Public Service Elect. & Gas Co. Carolina Power & Light Co. Montana Dakota Utilities Co. Western Colorado Power Co. Southwestern Gas & Electric Co. Swift & Co. Pet Milk Co. Stokely Foods Co. Penn Sugar Co. Savannah Sugar Co. Campbell Soup Co. Beechnut Packing Co. Kellogg Co. Horlick's Corp. Lederle Laboratories Nestles' Choc. Co. Rath Packing Co. Armour & Co. Ohio Salt Co. MacAndrews & Forbes General Foods Great Western Sugar Co. Pepsi-Cola Co. Park & Tilford, Inc. 1 A v Central Illinois Light Co. Peoria, Illinois Five Riley Units generating 1,800,000 lbs. of steam per hour are installed in this wellknown public utility plant. R8-00166S 1/17/02 NUECE8 of-RILEY Equipment MANUFACTURING 15. F. Goodrich Westclox Div. Norton Co. U. S. Rubber Co. Fisher Body Div. The Bullard Co. Chrysler Corp. Modine Mfg. Co. A. O. Smith Cor]). Nicholson File Co. Boeing Aircraft Owens-Illinois Glass Co. Continental Can Co. General Electric Co. Western Electric Co. General Motors Corp. I^ee Tire & Rubber Co. Western Cartridge Co. Curtiss Wright Corp. duett Peabody & Co. Congoleum Nairn Co. New Departure Div. Westinghouse Elect. & Mfg. Co. Winchester Repeating Arms Co. Burroughs Adding Machine Co. International Harvester Co. Goodyear Tire & Rubber Co. Pullman Standard Car Co. North American Aviation Pratt & Whitney Aircraft Allis Chalmers Mfg. Co. Crown Cork & Seal Co. Thomas A. Edison, Inc. PAPER AND WOOD PULP Mead Corp. Flintkote Co. St. Croix Paper Co. Bird & Sons Morris Paper Mills Scott Paper Co. Ecusta Paper Co. Masonite Corp. Rayonier, Inc. Container Corp. Fort Orange Paper Co. Columbia Boxboard Co. Finch, Pruyn & Co. Northern Paper Mills Gaylord Container Co. Bemis Bros. Bag Co. Crystal Tissue Paper Co. Alton Boxboard Co. Penobscot Chemical Fibre Co. Whippang Paperboard Co. Kalamazoo VegetableParchment Co. Champion Paper & Fibre Co. Lawless Bros. Paper Mills Waldorf Paper Products Co. Champion International Co. Smith Paper Co. John A. Manning Paper Co. Riley Stoker Corporation MAIN OFFICE - WORCESTER, MASSACHUSETTS MANUFACTURING PLANTS: CORNWELLS HEIGHTS, PA., DETROIT, MICH. AND DECATUR, ILL. PRODUCTS: Sica in Geuuraling Equipment Boilers Superheaters Water Walls Air Heaters Economizers Steel-clad Settings Fuel Burning Equipment Coal Pulverizers Coal, Oil and Gas Burners Spreader Stokers Travelling Grate Stokers Multiple Retort Stokers Single Retort Stokers Sales Offices Boston, Buffalo, Chicago, Cleveland, Detroit, New Orleans, New York, Philadelphia, Pittsburgh, Washington Sales Agents Atlanta, Charlotte, Cincinnati, Denver, Houston, Kansas City, Los Angeles, Milwaukee, Portland (Oregon), St. Louis, St. Paul, Salt Lake City, Seattle, Tulsa Foreign Manufacturing Associates British Commonwealth of Nations John Brown & Co. (Clydebank) Ltd. Australia Riley Dodds Australia Ltd. Canada Foster Wheeler Limited Europe Steam Generating Equipment John Brown & Co. (Clydebank) Ltd. Fuel Burning Equipment Fama Foreign Agents Cuba Wm. A. Powe Uruguay, S. A. Felix J. Castillo Venezuela Oficina Tecnica Stubbins Mexico Chas. C. Jagou Argentina Socidad Argentina Tecnica Brazil Equipmentos Industrials, Eisa Ltd. Puerto Rico and Dominican Republic Abarca Warehouses Hawaii Electric Steel Foundry Colombia, S.A. C. E. Halaby & Co., Ltd. Sweden AB Svenska Maskinverken Philippines Atlantic, Gulf & Pacific Co. % R8-001857 1/17/02 NUECE8 I