Document rBZqx6146wj7qBE2jyGmagY6a

Riley Stoker Corporation Annual Report For the Year 1946 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 Fred H. Daniels David K. Beach Louis E. Griffith Chapin Riley Frank C. Smith, Jr. George N. Jeppson Philip R. Mather STOKER CORPORATION, WORCESTER, MASS. Boiton Now York Philadelphia Pittsburgh Buffalo Oovoland Detroit Seattle Baltimore Richmond Denver Si. Loels Cincinnati Houston Chicago St. Paul Kansas Gty Los Angeles Atlanta Memphis New Orleans COMPLETE STEAM GENERATING UNITS BOILERS PULVERIZERS BURNERS STOKERS SUPERHEATERS AIR-HEATERS ECONOMIZERS WATER-COOLED FURNACES STEEL-CLAD INSULATED SETTINGS FLUE GAS SCRUBBERS L RS-001798 1/17/02 NUECES TO THE STOCKHOLDERS OF RILEY STOKER CORPORATION: There is submitted, herewith, for your consideration the Audited Consolidated State ments of Income and Surplus for the year 1946, together with the Consolidated Balance Sheet as at December 31, 1946. The net income was $609,000.04 after provision for Federal taxes. This is equivalent to $1.68 per share on the Common Stock after deduction of the dividend of $6.00 per share on the Preferred Stock. This compares with $.54 per share of Common Stock for 1945 and $.95 for 1944. The above figures are after completion of renegotiation of govern ment contracts for all of the war years. During 1946 dividends of $6.00 per share amounting to $20,970.00 were paid on the Pre ferred Stock and 40 cents per share, $140,000.00, on the Common Stock. As of July 1,1946, your Corporation purchased for the Sinking Fund 210 shares of Riley Preferred Stock, paying an average price of $142.00 per share as compared with the redemption value of $156.00 per share. After depreciation of $70,900.36, the net investment in land, buildings and equipment decreased by $36,641.81. In spite of the nation-wide strikes in steel, coal and railroads, production was fifteen per cent above that for 1945. Bank indebtedness was reduced during the year by $910,000.00, and the net current position improved by $114,341.77. Recent sales to Public Utilities include some of the largest steam generating units ever constructed by your Corporation, and an increasing percentage of the Corporation's total business is being obtained in the public utility field. Your Corporation has entered the year 1947 with the largest volume of unfilled orders in its history. Thus far this year, each month has seen an increase in the total amount of such orders, and the prospects for future business, both domestic and export, are very favorable. Yours very truly, F. H. Daniels, President Worcester, Massachusetts March 31, 1947 | I- RS-OOtf* A/17/02 NUECES i r { To the 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, 1946, 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 Companies at December 31, 1946, and the results of their operations for the year then ended, in conformity 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 20, 1947 1 J i1 c RS-001800 1/17102 NUECES l co ovoo Ooo' i-5 O' oo O' ss 8 cT oo*" OtoO t-J VI 88 ii s' s to Vi 8 otoT tvoi 8 oi-o o pH !z a c/) W ZW <P Pu d3 oS < 2 u c* < C/3 oa B W : ' 2 C/3 tzi W Q CJ Z$ Z < J < < co : ZS 2' e oj o o0* ga Z o 0u C* O o Pd W o H C/3 f >- 1 ri 5 t? s o 1s" .>t360e S' < s ^ r PQ < O <2 Sn OO N^ NfS NN S2 vo O' vl PvC S _ ta> <*-> oy oT`8CJ w'8S3 ufa < EwG*tf oD O D Z J3 < fa T3 8o H b a H .2 U CO t/3 J8 u I fa9 u wa ' -d V fa 6c0 'rt' fa i ug u 8 8 lo o t> p-s- 23 3 3 oo^ o^ xn 00 ts vtoo cn O > b ~a 3 -g 2 JS M9 J2 M9 tV o fa! oi B vO CP _ 3.fa cor hZ^S Sc b Mn 3 -S .S < -S 0 r5 Statement of Consolidated Surplus For the Year Ended December 31,1946 Capital Surplus Balance, December 31, 1945 ..................................................................................................... Add: Minority interest in Preferred Stock of Badenhausen Corporation reacquired during year Less: Excess of cost over par value of 210 shares of Riley Stoker Corporation, 6% cumulative preferred stock reacquired and held in sinking fund..................................................... Balance, December 31, 1946 ..................................................... .................................... Earned Surplus Balance, December 31, 1945 ..................................................................................................... Deduct: Appreciation of Buildings and Machinery of prior years written off.................................... Add: Net Income for year................................................................................................................ Adjustments of various tax'reserves and other transactions affecting prior years Deduct: Dividends on Preferred Stock................................................................................... $20,970.00 Common Stock........................................................... 140,000.00 Balance, December 31, 1946 ..................................................................................................... $110,890.56 12,105.08 $122,995.64 8,854.80 $114,140.84 $2,426,325.02 171,658.67 $2,254,666.35 609,000.04 31,575.25 $2,895,241.64 160,970.00 $2,734,271.64 Consolidated Statement of Profit and Loss For the Year Ended December 31,1946 Profit on Operations after Selling and Administrative Expenses, but before Depreciation . Depreciation............................................................................................................................ Operating Profit...................................................................................................................... Other Income............................................................................................................................ Other Deductions...................................................................................................................... Net Income before Federal Income Tax............................................................................. Provision for Federal Income Tax......................................................................................... Net Income to Surplus.......................................................................................................... $1,016,741.05 70,900.36 $945,840.69 61,086.86 $1,006,927.55 17,427.51 $989,500.04 . 380,500.00 $609,000.04 RS-001803 1/17/02 NUECES