-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: webmaster@www.sec.gov Originator-Key-Asymmetric: MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB MIC-Info: RSA-MD5,RSA, LkSPG9fb/J1rTDwqkA28vhFFXynLB92Y572c01EFe+ygiKM03+vEaxu+0YQF0FlJ fP37ccFIuXYNu1FswNlWig== 0000013573-96-000002.txt : 19960216 0000013573-96-000002.hdr.sgml : 19960216 ACCESSION NUMBER: 0000013573-96-000002 CONFORMED SUBMISSION TYPE: 10-Q PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 19951231 FILED AS OF DATE: 19960213 SROS: AMEX FILER: COMPANY DATA: COMPANY CONFORMED NAME: BOWL AMERICA INC CENTRAL INDEX KEY: 0000013573 STANDARD INDUSTRIAL CLASSIFICATION: SERVICES-AMUSEMENT & RECREATION SERVICES [7900] IRS NUMBER: 540646173 STATE OF INCORPORATION: MD FISCAL YEAR END: 0630 FILING VALUES: FORM TYPE: 10-Q SEC ACT: 1934 Act SEC FILE NUMBER: 001-07829 FILM NUMBER: 96517720 BUSINESS ADDRESS: STREET 1: 6446 EDSALL RD CITY: ALEXANDRIA STATE: VA ZIP: 22312 BUSINESS PHONE: 7039416300 MAIL ADDRESS: STREET 1: P O BOX 1288 STREET 2: P O BOX 1288 CITY: SPRINGFIELD STATE: VA ZIP: 22151 10-Q 1 UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q Quarterly Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 Quarter Ended December 31, 1995 Commission file Number 0-1830 BOWL AMERICA INCORPORATED (Exact name of registrant as specified in its charter.) MARYLAND 54-0646173 (State of Incorporation) (I.R.S. Employer Identification No.) 6446 Edsall Road, Alexandria, Virginia 22312 (Address of principal executive offices) (Zip Code) (703)941-6300 Registrant's telephone number, including area code Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. YES [X] NO [ ] Indicate the number of shares outstanding of each of the issuer's classes of common stock, as of the latest practical date: Shares Outstanding at January 28, 1995 Class A Common Stock, 4,206,510 $.10 par value Class B Common Stock 1,536,146 $.10 par value BOWL AMERICA INCORPORATED AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF EARNINGS PART I - FINANCIAL INFORMATION
Thirteen Weeks Ended Twenty-six Weeks Ended December 31, January 1, December 31, January 1, 1995 1995 1995 1995 _______________________ __________________________ Operating Revenues Bowling and other $5,172,788 $5,689,892 $ 8,996,646 $ 9,695,561 Food and merchandise sales 2,249,369 2,458,318 4,093,324 4,183,601 _________ _________ __________ __________ 7,422,157 8,148,210 13,089,970 13,879,162 Operating Expenses Compensation and benefits 3,108,679 3,340,300 6,140,935 6,319,017 Cost of bowling and other 1,581,697 1,763,809 3,265,035 3,550,205 Cost of food and mdse sales 746,615 791,489 1,356,183 1,328,113 Depreciation and amortization 506,447 500,012 998,030 976,730 General and administrative 201,548 170,618 401,443 399,610 _________ _________ __________ __________ 6,144,986 6,566,228 12,161,626 12,573,675 Operating Income 1,277,171 1,581,982 928,344 1,305,487 Interest and dividend income 154,579 119,165 295,213 234,705 _________ _________ __________ __________ Earnings before provision for income taxes 1,431,750 1,701,147 1,223,557 1,540,192 Provision for income taxes 535,753 638,762 448,376 570,050 _________ _________ __________ __________ Net Earnings $ 895,997 $1,062,385 $ 775,181 $ 970,142 Earnings per share $.16 $.19* $.14 $.17* Weighted average shares outstanding 5,742,656 5,751,356* 5,742,791 5,751,650* Dividends paid $545,553 $517,671 $1,091,146 $1,035,363 Per share, Class A $.095 $.09* $.19 $.18* Per share, Class B $.095 $.09* $.19 $.18*
*Restated for two-for-one stock split paid February 15, 1995. The operating results for these thirteen (13) and twnety-six (26) week periods are not necessarily indicative of results to be expected for the year. See notes to financial information. BOWL AMERICA INCORPORATED AND SUBSIDIARIES CONSOLIDATED BALANCE SHEETS
December 31, 1995 July 2, 1995 _______________ _____________ ASSETS Current Assets Cash and cash equivalents $ 2,473,712 $ 973,678 Short-term investments 6,781,294 6,660,958 Inventories 736,255 617,130 Prepaid expenses and other 615,382 562,217 Income taxes refundable 153,764 444,626 __________ __________ Total Current Assets 10,760,407 9,258,609 Property, Plant and Equipment less accumulated depreciation of $18,863,763 and $17,964,967 22,749,120 23,399,267 Other Assets Noncurrent marketable securities 3,955,130 3,093,555 Cash surrender value-life insurance 316,035 347,312 Other long-term assets 286,609 486,002 __________ __________ TOTAL ASSETS $38,067,301 $36,584,745
BOWL AMERICA INCORPORATED AND SUBSIDIARIES CONSOLIDATED BALANCE SHEETS
December 31, 1995 July 2, 1995 _______________ ____________ LIABILITIES AND STOCKHOLDERS' EQUITY Current Liabilities Accounts payable $ 622,063 $ 693,280 Accrued expenses and payroll ded 1,004,858 1,047,266 Other current liabilities 1,495,870 441,698 Current deferred income taxes 72,000 72,000 __________ __________ Total Current Liabilities 3,194,791 2,254,244 Noncurrent Deferred Income Taxes 2,214,398 1,887,000 TOTAL LIABILITIES 5,409,189 4,141,244 __________ __________ Stockholders' Equity Preferred stock, par value $10 a share: Authorized and unissued 2,000,000 shares Common stock, par value $.10 per share Authorized 10,000,000 shares Class A issued and outstanding - 4,206,510 and 4,206,931 shares 420,652 420,693 Class B issued and outstanding - 1,536,146 153,614 153,614 Additional paid-in capital 4,944,337 4,944,585 Unrealized gain on securities available-for-sale, 1,920,117 1,385,940 Retained earnings 25,219,392 25,538,669 __________ __________ TOTAL STOCKHOLDERS' EQUITY $32,658,112 $32,443,501 TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY $38,067,301 $36,584,745 See notes to financial information.
BOWL AMERICA INCORPORATED CONSOLIDATED STATEMENTS OF CASH FLOWS FOR THE TWENTY-SIX WEEKS ENDED DECEMBER 31, 1995 AND JANUARY 1, 1995
December 31, January 1, 1995 1995 Cash Flows From Operating Activities: Net earnings $ 775,181 $ 970,142 Adjustments to reconcile net earnings to net cash provided by operating activities Depreciation and amortization 998,030 858,800 (Gain) Loss on sale/abandonment of assets net (5,634) 39,942 Changes in assets and liabilities Increase in inventories (119,125) (173,397) Increase in prepaid and other (53,165) (802,958) Decrease in other long-term assets 230,670 248,784 Decrease in accounts payable (71,217) (264,116) Decrease (increase) in accrued expenses and payroll deductions (42,408) 491,470 Increase in income taxes payable - 289,314 Decrease in income taxes refundable 290,862 - Increase in other current liabilities 1,054,172 1,074,653 _________ _________ Net cash provided by operating activities $3,057,366 $2,732,634 _________ _________ Cash flows from investing activities Expenditures for property,plant,equip (342,249) (2,199,953) Net increase in short-term investments (120,336) (622,811) _________ _________ Net cash used in investing activities (462,585) (2,822,764) _________ _________ Cash flows from financing activities Payment of cash dividends (1,091,146) (1,035,363) Purchase of Class A Common Stock (3,601) (57,196) _________ _________ Net cash used in financing activities (1,094,747) (1,092,559) _________ _________ Net Increase (Decrease) in Cash and Equivalents 1,500,034 (1,182,689) Cash and Equivalents, Beginning of Year 973,678 3,468,677 _________ _________ Cash and Equivalents, End of Period $2,473,712 $2,285,988 Supplemental Disclosures of Cash Flow Information Cash paid during the period for Income taxes $ 157,514 $ 280,736 See notes to financial information.
BOWL AMERICA INCORPORATED AND SUBSIDIARIES NOTES TO FINANCIAL STATEMENTS For the Twenty-six Weeks Ended December 31, 1995 1. Consolidated Financial Statements The consolidated balance sheets as of December 31, 1995, and the consolidated statements of earnings and cash flows for the three-month and six-month periods ended December 31, 1995 and January 1, 1995 have been prepared by the Company, without audit. This quarterly financial information is submitted in response to the requirements of Form 10-Q and does not purport to be financial statements prepared in accordance with generally accepted accounting principles. They therefore do not include all disclosures which might be associated with such statements. In the opinion of management such information includes all adjustments, consisting only of normal recurring accruals, necessary to present fairly the financial position at December 31, 1995, and for all periods presented. For a summary of significant accounting principles, which have been continued without change, refer to Note 1 to the financial statements for the year ended July 2, 1995. BOWL AMERICA INCORPORATED MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS December 31, 1995 Liquidity and Capital Resources Short-term investments consisting mainly of U.S. Treasury Bills and Notes, and cash totaled $9,255,000 at the end of the second quarter of fiscal 1996 or $1,942,000 higher than at the beginning of the quarter. The increase relates primarily to the seasonal nature of bowling participation. On September 1, 1994, the Comapny opened Bowl America Gaithersburg, a 48-lane center with at 170-seat full service, diner style restaurant. A center was closed in May 1995 at the expiration of its lease. In July 1993, the Company paid $1.8 million in cash for an existing 32-lane center in Orange Park, Florida. Expansion of our Dranesville bowling center from 32 lanes to 48 lanes has begun, but there will be no contribution to cash flow until next fiscal year. Additional expenditures are also planned as the Company continues to modernize other existing centers. Cash and cash flow are sufficient to finance all currently planned construction. The Company has maintained its fiscal year end 1995 position in telecommunications stock as a further source of expansion capital. Results of Operations There was a $.16 per share profit for the thirteen-week period ending December 31, 1995, versus $.19 per share profit for the thirteen weeks ended January 1, 1995. For the current twenty-six week period earnings per share were $.14 compared to $.17 for the comparable period a year ago. Decreases in both revenues and expenses are partially due to our operating one less center for the majority of the current six-month reporting period compared to the prior year period. Operating revenues decreased 6% for the current six-month period, versus an increase of 6% in the comparable period a year ago. Decreases in league linage and in the average price per game exceeded the benefit of increased open play games during the twenty-six week period. Although food and beverage sales were down in the current period, sales at comparable locations were up slightly due to traffic at our Diner.X.Press restaurant. Operating expenses decreased 3% in the current six-month period versus an increase of 13% in the prior year comparable period when start-up costs for Gaithersburg were reported. Employee compensation and benefits were down 3% this period versus a 13% increase in the prior year period, the changes in both years resulting from differences in the number of centers in operation. Advertising costs decreased 5% from the prior year period although we are still conducting media campaigns to promote our centers. Utility costs decreased 2% in the current year period compared with a 5% increase in the prior year period. Rent expense decreased 11 % in the current twenty-six week period and 2% in the prior year period, the decrease a result of reduced sales at some leased locations and the closing of a leased center, mentioned above. Real estate and personal property taxes and insurance premiums were down 2% for the period compared to an increase in the prior year relating to the opening of a new location. Increases in depreciation and amortization expense of 2% in the current period relates primarily to the Gaithersburg location being open for the full six-month period this year. The 16% increase in the comparable period last year was due mainly to the opening of the new bowling centers. Since the end of the second quarter, the northern centers, 20 of our 25 locations, have been adversely affected by the Blizzard of '96 and the extreme cold. This has resulted in a loss of linage and increases in maintenance costs. BOWL AMERICA INCORPORATED AND SUBSIDIARIES S.E.C. FORM 10-Q December 31, 1995 PART II - OTHER INFORMATION No material unusual charges or credits to income or changes in independent accountants occurred during the quarter which would require the filing of a Form 8-K. BOWL AMERICA INCORPORATED AND SUBSIDIARIES SIGNATURES Pursuant to the requirement of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized. BOWL AMERICA INCORPORATED Registrant February 13, 1996 Leslie H. Goldberg Date Leslie H. Goldberg President February 13, 1996 Cheryl A. Dragoo Date Cheryl A. Dragoo Controller EX-27 2 ART. 5 FDS FOR 2RD QUARTER 10-Q
5 1,000 U.S. DOLLARS 1 6-MOS JUL-30-1996 DEC-31-1995 2,473 3,955 0 0 736 10,760 41,613 18,863 38,067 3,195 0 0 0 574 32,658 38,067 4,093 13,090 2,193 12,162 0 0 0 1,224 448 775 0 0 0 775 .14 .14
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