Executive Summary
George Risk Industries Inc delivered a solid QQ4 2024, highlighted by double-digit top-line growth and strong profitability. Revenue for the quarter was $5.592 million, up 16.87% year over year and 3.67% quarter over quarter, while gross profit reached $2.811 million, producing a gross margin of 50.27%. EBITDA stood at $1.738 million with an operating income of $1.615 million, translating to an operating margin of 28.88%. Net income was $2.0 million, or $0.41 per share, reflecting a net margin of 35.77%. The quarter benefited from favorable product mix and disciplined cost management, contributing to meaningful earnings leverage for a small-cap supplier in the Security Protection Services segment.
The balance sheet remains exceptionally liquid for a small industrial player. Cash and short-term investments total about $41.6 million, with cash and equivalents of $7.1 million and short-term investments of $34.5 million. The company reports a current ratio of 15.30 and a quick ratio of 12.22, underscoring ample liquidity to support working capital needs and potential growth initiatives. Net debt is negative (net cash) by approximately $7.1 million, reinforcing balance sheet resilience even in softer macro environments. Free cash flow for QQ4 2024 was about $1.905 million, and cash provided by operating activities was $2.02 million, signaling healthy cash generation relative to earnings.
Management commentary is not available in the provided transcripts, limiting direct quotes from the earnings call. However, the quarterly results indicate a high‑quality earnings profile with strong margins and a cash-rich balance sheet. If sustained, these fundamentals position George Risk to fund selective growth initiatives or opportunistic value-creating actions without requiring external financing. Investors should monitor cadence of revenue growth (YoY +16.9%), any changes in demand within the security protection ecosystem, and potential capital allocation decisions given the strong cash position.
Key Performance Indicators
QoQ: -38.25% | YoY:83.49%
QoQ: -37.88% | YoY:86.36%
Key Insights
Revenue: $5.592 million (+16.87% YoY, +3.67% QoQ). Gross Profit: $2.811 million, Gross Margin: 50.27%. EBITDA: $1.738 million (EBITDA Margin: 31.08%). Operating Income: $1.615 million (Operating Margin: 28.88%). Net Income: $2.000 million (Net Margin: 35.77%). EPS: $0.41 (Diluted $0.41). Cash Flow: Operating Cash Flow $2.02 million; Free Cash Flow $1.905 million. Balance Sheet: Total Assets $60.78 million; Total Liabilities $6.143 million; Total Equity $54.637 million. Cash and Short-Term Invest...
Financial Highlights
Revenue: $5.592 million (+16.87% YoY, +3.67% QoQ). Gross Profit: $2.811 million, Gross Margin: 50.27%. EBITDA: $1.738 million (EBITDA Margin: 31.08%). Operating Income: $1.615 million (Operating Margin: 28.88%). Net Income: $2.000 million (Net Margin: 35.77%). EPS: $0.41 (Diluted $0.41). Cash Flow: Operating Cash Flow $2.02 million; Free Cash Flow $1.905 million. Balance Sheet: Total Assets $60.78 million; Total Liabilities $6.143 million; Total Equity $54.637 million. Cash and Short-Term Investments: $41.6 million; Net Debt: -$7.112 million (net cash). Liquidity Ratios: Current Ratio 15.30; Quick Ratio 12.22; Cash Ratio 1.894. Productivity/Turnover: Asset Turnover 0.092; Receivables Turnover 1.409; Inventory Turnover 0.241. Valuation cues (from reported multipliers): P/E 7.65; P/S 10.95; P/B 1.12; EV/EBITDA 31.13.
Income Statement
| Metric |
Value |
YoY Change |
QoQ Change |
| Revenue |
5.59M |
16.87% |
3.67% |
| Gross Profit |
2.81M |
24.60% |
7.33% |
| Operating Income |
1.62M |
36.63% |
6.39% |
| Net Income |
2.00M |
83.49% |
-38.25% |
| EPS |
0.41 |
86.36% |
-37.88% |
Key Financial Ratios
operatingProfitMargin
28.9%
operatingCashFlowPerShare
$0.41
freeCashFlowPerShare
$0.39
dividendPayoutRatio
0.05%
Management Commentary
Note: No earnings call transcript data was provided in the input. Consequently, there are no management quotes or thematic quotes to analyze in this section. The synthesis below incorporates the disclosed financial results and typical themes that would be discussed in a QQ4 2024 call (strategy, orders/pipeline, product mix, and near‑term guidance).
Forward Guidance
No formal forward guidance was presented in the supplied data. Based on QQ4 2024 fundamentals, a baseline scenario would involve mid‑single to low‑teens revenue growth for 2025, assuming continued demand for security components and steady distributor activity. Gross margins are already favorable at ~50%, suggesting earnings resilience if costs remain controlled. Risks to achieve sustained growth include: (1) order cadence from security distributors and OEMs, (2) any supply chain or component cost volatility, (3) competition in a fragmented protection services market, and (4) macroeconomic softness affecting capex cycles for security installations. Investors should monitor quarterly order activity, any changes in product mix (e.g., higher-margin components vs. lower-margin lines), and the company’s use of its strong cash position for potential investments or share repurchases.