Document g78oa5VZprkkXaKbLgLaGn79

J{nnual Report Riley Stoker Corporation December 31, 1945 Officers Fred H. Daniels.............................................................President Louis E. Griffith . Vice-president and General Manager David K. Beach Vice-president and Treasurer Aldus C. Higgins .............................................Vice-president James W. Armour.............................................Vice-president Chapin Riley ............................................................. Secretary Directors Aldus C. Higgins, Chairman Chapin Riley Fred H. Daniels Frank C. Smith, Jr. David K. Beach George N. Jeppson Louis E. Griffith Philip R. Mather L RS-001774 1/17/02 NUECES TO THE STOCKHOLDERS OF RILEY STOKER CORPORATION: There is submitted, herewith, for your consideration the Audited Consolidated Financial Statement of your Company for the year 1945 including the Consolidated Balance Sheet as of the end of the year. The net income was 2210,585.89 after provision for Federal taxes. This is equivalent to 2.54 per share on the Common Stock after deduction of the dividend of 26.00 per share on the Preferred Stock. This compares with 2-95 per share of Common Stock for 1944. The above figures are after completion of renegotiation for 1945 and all previous years. During the year dividends of 26.00 per share amounting to 221,600.00 were paid on the Preferred Stock and 40 cents per share, 2140,000.00, on the Common Stock. After depreciation and accelerated amortization of 2237,673.08 the net investment in land, buildings and equipment decreased by 2288,587.24. Due chiefly to lack of manpower and difficulties in getting materials, the volume of busi ness transacted during the year was seventy per cent of that done in 1944. Bank indebtedness was reduced by 2260,000.00 and the net current position improved by 2301,771.01. Your Company has entered the year 1946 with a large volume of unfilled orders. The prospects for future business are very favorable. April 10, 1946 Yours very truly, F. H. Daniels, President RS-001775 1/17/02 NUECES X* 1 To Tbe Board of Directors Riley Stoker Corporation Worcester 6, Massachusetts We have examined the consolidated balance sheet of the Riley Stoker Corporation and its subsidiary Companies as of December 31, 1945, and the consolidated statements of income and surplus for the year then ended; have reviewed the system of internal control and accounting procedures of the Companies and, without making a detailed audit of the transactions, have examined or tested accounting records of the Companies and other supporting evidence, by methods and to the extent we deemed appropriate; and have had submitted to us a report of other public accountants on their examination of the subsidiary not examined by us. Our examination was made in accordance with generally accepted auditing standards applicable in the circumstances and including all procedures which we considered necessary. In our opinion, the accompanying consolidated balance sheet and consolidated statements of income and surplus present fairly the position of Riley Stoker Corporation and subsidiary Com panies at December 31, 1945, and the results of their operations for the year then ended, in con formity with generally accepted accounting principles applied on a basis consistent with that of the preceding year. George A. Smith and Company, Certified Public Accountants Worcester, Massachusetts March 27, 1946 r RS-001776 1/17/02 NUECES ( RILEY STOKER CORPORATION AND SUBSIDIARY COMPANIES CONSOLIDATED BALANCE SHEET D ec em ber 31. 1945 Statement of Consolidated Surplus For the Year Ended December 31, 1945 Earned Suprlus Balance, December 31, 1944 ............................................................................................... $2,430,572.36 Deduct: Adjustment of Amortization of war facilities applicable to prior years, Renegotia tion refund to U.S. Government for year 1944 and other transactions affecting prior years--Net.................................................................................................... 53,233.23 Adjusted Balance, December 31, 1944 ............................................................................ $2,377,339.13 Add: Net Income for the year........................................................................................ 210,585.89 $2,587,925.02 Deduct: Dividends on Preferred Stock....................................................................... Common Stock....................................................................... $21,600.00 140,000.00 161,600.00 Balance, December 31, 1945 per Consolidated Balance Sheet................................... $2,426,325.02 Consolidated Statement of Profit and Loss For the Year Ended December 31, 1945 Profit on Operations after Selling and Administrative Expenses and Provision for Doubtful Accounts, but before Depreciation and Amortization ........................ Depreciation and Amortization................................................................................... Operating Profit................................................................................................................ Other Income................................................................................................................ Other Deductions.......................................................................................................... Net Income before Federal Income Tax....................................................................... Provision for Federal Income Tax ............................................................................. Balance.......................................................................................................... Dividends on Preferred Stock to Minority Interest of Subsidiary Companies . Net Income to Surplus.................................................................................................... $669,791.24 237,673.08 $432,118.16 30,920.14 $463,038.30 29,058.41 $433,979.89 209,700.00 $224,279.89 13,694.00 $210,585.89 RS-001779 1/17/02 NUECES