-----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, EU9uNnTN/KYqJLsZYor8IWFXHy8tQrXEubAqLbbSe+NcuyCscWplnliy6+mMMRPu WAUumlR2QRJiPW2qpQH4Cw== 0000013573-97-000001.txt : 19970222 0000013573-97-000001.hdr.sgml : 19970222 ACCESSION NUMBER: 0000013573-97-000001 CONFORMED SUBMISSION TYPE: 10-Q PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 19961229 FILED AS OF DATE: 19970212 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: 97525571 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 29, 1996 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 26, 1997 Class A Common Stock, 4,145,410 $.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 29, December 31, December 29, December 31, 1996 1995 1996 1995 _______________________ __________________________ Operating Revenues Bowling and other $5,056,951 $5,172,788 $ 8,800,684 $ 8,996,646 Food and merchandise sales 2,093,810 2,249,369 3,715,566 4,093,324 _________ _________ __________ __________ 7,150,761 7,422,157 12,516,250 13,089,970 Operating Expenses Compensation and benefits 3,025,047 3,108,679 5,865,894 6,140,935 Cost of bowling and other 1,555,266 1,581,697 3,145,660 3,265,035 Cost of food and mdse sales 693,570 746,615 1,266,227 1,356,183 Depreciation and amortization 502,741 506,447 1,003,621 998,030 General and administrative 184,486 201,548 366,011 401,443 _________ _________ __________ __________ 5,961,110 6,144,986 11,647,413 12,161,626 Operating Income 1,189,651 1,277,171 868,837 928,344 Interest and dividend income 124,746 154,579 246,213 295,213 _________ _________ __________ __________ Earnings before provision for income taxes 1,314,397 1,431,750 1,115,050 1,223,557 Provision for income taxes 491,356 535,753 407,624 448,376 _________ _________ __________ __________ Net Earnings $ 823,041 $ 895,997 $ 707,426 $ 775,181 Earnings per share $.14 $.16 $.12 $.14 Weighted average shares outstanding 5,682,156 5,742,656 5,682,306 5,742,791 Dividends paid $539,834 $545,553 $1,077,881 $1,091,146 Per share, Class A $.095 $.095 $.19 $.19 Per share, Class B $.095 $.095 $.19 $.19
The operating results for these thirteen (13) and twenty-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 29, 1996 June 30, 1996 _______________ _____________ ASSETS Current Assets Cash and cash equivalents $ 2,587,293 $ 2,120,862 Short-term investments 6,386,226 6,760,166 Inventories 716,906 685,777 Prepaid expenses and other 535,497 736,659 Income taxes refundable - 204,662 __________ __________ Total Current Assets 10,225,922 10,508,126 Property, Plant and Equipment less accumulated depreciation of $20,080,568 and $19,268,110 23,118,237 22,680,521 Other Assets Noncurrent marketable securities 3,973,566 3,855,282 Cash surrender value-life insurance 336,385 332,162 Other long-term assets 218,932 525,163 __________ __________ TOTAL ASSETS $37,873,042 $37,901,254
BOWL AMERICA INCORPORATED AND SUBSIDIARIES CONSOLIDATED BALANCE SHEETS
December 29, 1996 June 30, 1996 _______________ ____________ LIABILITIES AND STOCKHOLDERS' EQUITY Current Liabilities Accounts payable $ 592,725 $ 1,447,153 Accrued expenses and payroll ded 838,138 906,239 Income taxes payable 104,005 - Other current liabilities 1,436,643 388,029 Current deferred income taxes 114,000 114,000 __________ __________ Total Current Liabilities 3,085,511 2,855,421 Noncurrent Deferred Income Taxes 2,186,948 2,142,000 TOTAL LIABILITIES 5,272,459 4,997,421 __________ __________ 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 - 4,145,410 and 4,146,310 shares 414,541 414,631 Class B issued and outstanding - 1,536,146 153,614 153,614 Additional paid-in capital 4,908,288 4,908,819 Unrealized gain on securities available-for-sale, 1,931,548 1,858,212 Retained earnings 25,192,592 25,568,557 __________ __________ TOTAL STOCKHOLDERS' EQUITY $32,600,583 $32,903,833 TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY $37,873,042 $37,901,254 See notes to financial information.
BOWL AMERICA INCORPORATED CONSOLIDATED STATEMENTS OF CASH FLOWS FOR THE TWENTY-SIX WEEKS ENDED DECEMBER 29, 1996 AND DECEMBER 31, 1995
December 29, December 31, 1996 1995 Cash Flows From Operating Activities: Net earnings $ 707,426 $ 775,181 Adjustments to reconcile net earnings to net cash provided by operating activities Depreciation and amortization 1,003,621 998,030 Loss (gain) on sale/abandonment of assets net 3,330 (5,634) Changes in assets and liabilities Increase in inventories (31,129) (119,125) Decrease (increase) in prepaid and other 201,162 (53,165) Decrease in other long-term assets 302,008 230,670 Decrease in accounts payable (854,428) (71,217) Decrease in accrued expenses and payroll deductions (68,101) (42,408) Increase in income taxes payable 104,005 - Decrease in income taxes refundable 204,662 290,862 Increase in other current liabilities 1,048,614 1,054,172 _________ _________ Net cash provided by operating activities $2,621,170 $3,057,366 _________ _________ Cash flows from investing activities Expenditures for property,plant,equip (1,444,667) (342,249) Net decrease (increase) in short-term investments 373,940 (120,336) _________ _________ Net cash used in investing activities (1,070,727) (462,585) _________ _________ Cash flows from financing activities Payment of cash dividends (1,077,881) (1,091,146) Purchase of Class A Common Stock (6,131) (3,601) _________ _________ Net cash used in financing activities (1,084,012) (1,094,747) _________ _________ Net Increase in Cash and Equivalents 466,431 1,500,034 Cash and Equivalents, Beginning of Year 2,120,862 973,678 _________ _________ Cash and Equivalents, End of Period $2,587,293 $2,473,712 Supplemental Disclosures of Cash Flow Information Cash paid during the period for Income taxes $ 98,957 $ 157,514 See notes to financial information.
BOWL AMERICA INCORPORATED AND SUBSIDIARIES NOTES TO FINANCIAL STATEMENTS For the Twenty-six Weeks Ended December 29, 1996 1. Consolidated Financial Statements The consolidated balance sheets as of December 29, 1996, and the consolidated statements of earnings and cash flows for the three-month and six-month periods ended December 29, 1996 and December 31, 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 29, 1996, 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 June 30, 1996. BOWL AMERICA INCORPORATED MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS December 29, 1996 Liquidity and Capital Resources Short-term investments consisting mainly of U.S. Treasury Bills and Notes, and cash totaled $8,974,000 at the end of the second quarter of fiscal 1997 or $1,646,000 higher than at the beginning of the quarter. The increase relates primarily to the seasonal nature of bowling participation. Expansion of our Dranesville bowling center from 32 lanes to 48 lanes, including installing the most up-to-date autoscoring system, will be completed in the third quarter. Through the end of the second quarter the Company had expended approximately $1.5 million of the $2.1 million budgeted for the project, with the remaining $600,000 expected to be paid in the third quarter. Additional expenditures are also planned as we are installing "Cosmic Bowling", a glow-in-the-dark, laser light, stereo sound system, at several of our locations and we are continuing to modernize other existing centers. Cash and cash flow are sufficient to finance all currently planned purchases and construction. The Company has maintained its fiscal year end 1996 position in telecommunications stocks as a further source of expansion capital. On September 1, 1994, the Company 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. Results of Operations There was a $.14 per share profit for the thirteen-week period ending December 29, 1996, versus a $.16 per share profit for the thirteen weeks ended December 31, 1995. For the current twenty-six week period earnings per share were $.12 compared to $.14 for the comparable period a year ago. Operating revenues decreased 7% for the current six-month period, versus a decrease of 6% in the comparable period a year ago. An increase in the average price per game helped to offset the effect of the decrease in games during the twenty-six week period. The Company has begun a program of replacing leased amusement game machines with owned machines. Year-to-date this change has resulted in an increase in game revenue at the affected locations. Food and beverage sales were down in the current period and cost of food and beverage sales decreased in response to the reduction in sales. Operating expenses excluding depreciation and amortization decreased 5% in the current period versus a 3% decrease in the comparable period last year. Employee compensation and benefits were down 4% this period versus a 6% increase in the prior year period. Advertising costs decreased 21% from the prior year period as we used print media to a greater extent than in the previous period. Utility costs decreased 5% in the current period compared to a 6% decrease in the prior year period. The decrease in the prior period reflected the decrease in the number of centers in operation. Rent expense decreased 10% in the current twenty-six week period and 11% in the prior year period, the decrease a result of reduced sales at some leased locations. Personal property taxes and insurance premiums were down for the period. Increases in depreciation and amortization expense of 1% in the current period relate primarily to the capital expenditures made in the last nine months. The 2% increase in the comparable period last year was due mainly to the Gaithersburg location being open for the full period. BOWL AMERICA INCORPORATED AND SUBSIDIARIES S.E.C. FORM 10-Q December 29, 1996 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 11, 1997 Leslie H. Goldberg Date Leslie H. Goldberg President February 11, 1997 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 JUN-29-1997 DEC-29-1996 2,587 3,974 0 0 716 10,226 43,098 20,081 37,873 3,086 0 0 0 568 32,032 37,873 3,716 12,516 1,266 11,647 0 0 0 1,115 408 707 0 0 0 707 .12 .12
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