-----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, J0ZO6Bu2UItrblozj81IXDMucmZJkQBE7gjxtA3buoePdpijCZKsdjOIwYoPOHqX LVNe62PiisqIobNZRflcXA== 0000013573-97-000003.txt : 19970514 0000013573-97-000003.hdr.sgml : 19970514 ACCESSION NUMBER: 0000013573-97-000003 CONFORMED SUBMISSION TYPE: 10-Q PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 19970330 FILED AS OF DATE: 19970513 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: 97603072 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 March 30, 1997 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 April 27, 1997 Class A Common Stock, 4,142,448 $.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 Thirty-nine Weeks Ended March 30, March 31, March 30, March 31, 1997 1996 1997 1996 _______________________ __________________________ Operating Revenues Bowling and other $6,062,748 $5,872,127 $14,863,432 $14,868,773 Food and merchandise sales 2,439,554 2,462,458 6,155,120 6,555,782 _________ _________ __________ __________ 8,502,302 8,334,585 21,018,552 21,424,555 Operating Expenses Compensation and benefits 3,168,017 3,118,268 9,033,911 9,259,203 Cost of bowling and other 1,597,975 1,651,220 4,743,635 4,916,255 Cost of food and mdse sales 756,050 776,845 2,022,277 2,133,028 Depreciation and amortization 509,241 514,657 1,512,862 1,512,687 General and administrative 188,064 209,337 554,075 610,780 _________ _________ __________ __________ 6,219,347 6,270,327 17,866,760 18,431,953 Operating Income 2,282,955 2,064,258 3,151,792 2,992,602 Interest and dividend income 197,137 180,021 443,350 475,234 _________ _________ __________ __________ Earnings before provision for income taxes 2,480,092 2,244,279 3,595,142 3,467,836 Provision for income taxes 934,208 844,466 1,341,832 1,292,842 _________ _________ __________ __________ Net Earnings $1,545,884 $1,399,813 $ 2,253,310 $ 2,174,994 Earnings per share $.28 $.24 $.40 $.38 Weighted average shares outstanding 5,681,536 5,740,938 5,682,049 5,742,174 Dividends paid $541,534 $545,552 $1,619,415 $1,636,698 Per share, Class A $.095 $.095 $.285 $.285 Per share, Class B $.095 $.095 $.285 $.285
The operating results for these thirteen (13) and thirty-nine (39) 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
March 30, 1997 June 30, 1996 _______________ _____________ ASSETS Current Assets Cash and cash equivalents $ 2,041,175 $ 2,120,862 Short-term investments 8,876,684 6,760,166 Inventories 669,163 685,777 Prepaid expenses and other 933,261 736,659 Income taxes refundable - 204,662 __________ __________ Total Current Assets 12,520,283 10,508,126 Property, Plant and Equipment less accumulated depreciation of $20,375,500 and $19,268,110 23,646,628 22,680,521 Other Assets Noncurrent marketable securities 3,859,854 3,855,282 Cash surrender value-life insurance 336,385 332,162 Other long-term assets 218,932 525,163 __________ __________ TOTAL ASSETS $40,582,082 $37,901,254
BOWL AMERICA INCORPORATED AND SUBSIDIARIES CONSOLIDATED BALANCE SHEETS
March 30, 1997 June 30, 1996 _______________ ____________ LIABILITIES AND STOCKHOLDERS' EQUITY Current Liabilities Accounts payable $ 716,477 $ 1,447,153 Accrued expenses and payroll ded 1,211,671 906,239 Income taxes payable 547,346 - Other current liabilities 2,314,641 388,029 Current deferred income taxes 114,000 114,000 __________ __________ Total Current Liabilities 4,904,135 2,855,421 Noncurrent Deferred Income Taxes 2,143,737 906,239 TOTAL LIABILITIES 7,047,872 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 - 4,145,380 and 4,146,310 shares 414,538 414,631 Class B issued and outstanding - 1,536,146 153,614 153,614 Additional paid-in capital 4,908,270 4,908,819 Unrealized gain on securities available-for-sale, net of tax 1,861,047 1,858,212 Retained earnings 26,196,741 25,568,557 __________ __________ TOTAL STOCKHOLDERS' EQUITY $33,534,210 $32,443,501 TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY $40,582,082 $37,901,254 See notes to financial information.
BOWL AMERICA INCORPORATED CONSOLIDATED STATEMENTS OF CASH FLOWS FOR THE THIRTY-NINE WEEKS ENDED MARCH 30, 1997 AND MARCH 31, 1996
March 30, March 31, 1997 1996 Cash Flows From Operating Activities: Net earnings $2,253,310 $2,174,994 Adjustments to reconcile net earnings to net cash provided by operating activities Depreciation and amortization 1,512,862 1,512,687 Gain on disposition of assets-net 25,301 - Changes in assets and liabilities Decrease in inventories 16,614 38,672 Increase in prepaid and other (196,602) (344,775) Decrease in other long-term assets 302,008 231,467 (Decrease) increase in accounts payable (730,676) 194,584 Increase (decrease) in accrued expenses and payroll deductions 305,432 (34,136) Increase in income taxes payable 547,346 339,813 Decrease in income taxes refundable 204,662 444,626 Increase in other current liabilities 1,926,612 1,935,757 _________ _________ Net cash provided by operating activities $6,166,869 $6,493,689 _________ _________ Cash flows from investing activities Expenditures for property,plant,equip (2,504,270) (551,730) Net increase in short-term investments (2,116,518) (3,078,262) _________ _________ Net cash used in investing activities (4,620,788) (3,629,992) _________ _________ Cash flows from financing activities Payment of cash dividends (1,619,415) (1,636,698) Purchase of Class A Common Stock (6,353) (257,000) _________ _________ Net cash used in financing activities (1,625,768) (1,893,698) _________ _________ Net (Decrease) Increase in Cash and Cash Equivalents (79,687) 969,999 Cash and Equivalents, Beginning of Year 2,120,862 973,678 _________ _________ Cash and Equivalents, End of Period $2,041,175 $1,943,677 Supplemental Disclosures of Cash Flow Information Cash paid during the period for Income taxes $ 589,824 $ 508,036 See notes to financial information.
BOWL AMERICA INCORPORATED AND SUBSIDIARIES NOTES TO FINANCIAL STATEMENTS For the Thirty-nine Weeks Ended March 30, 1997 1. Consolidated Financial Statements The consolidated balance sheets as of March 30, 1997, and the consolidated statements of earnings and cash flows for the three-month and nine-month periods ended March 30, 1997 and March 31, 1996 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 March 30, 1997, 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. 2. New Accounting Pronouncement The Financial Accounting Standards Board issued SFAS No. 128, "Earnings per Share" in February 1997. This standard will be effective for the Company beginning in fiscal year 1998. The proforma effect of adopting this standard has no impact on the earnings per share calculation for the three-month periods ended March 30, 1997 and March 31, 1996, and the nine-month periods ended March 31, 1997 and March 31, 1996. BOWL AMERICA INCORPORATED MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS March 30, 1997 Liquidity and Capital Resources Short-term investments consisting mainly of U.S. Treasury Bills and Notes, and cash totaled $10,918,000 at the end of the third quarter of fiscal 1997 or $1,944,000 higher than at the beginning of the quarter. The increase relates primarily to the seasonal nature of bowling participation. Although remodeling of the snack bar area at our Dranesville location is continuing, the 16-lane expansion was completed in the third quarter and it is generating additional cash flow. During fiscal 1997 approximately $1.6 million will be expended for the project. "Extreme Bowling", a glow-in-the-dark bowling experience, augmented by laser lights and high energy stereo sound, was started at 5 locations during the third quarter where it has generated increased linage and food and merchandise sales. We are currently installing the equipment in an additional two centers and may include more centers in the future. We are continuing to modernize other locations. Cash and cash flow from operations are sufficient to finance all currently planned purchases and construction. The Company has maintained its fiscal year end 1996 position in telecommunications stock as a further source of expansion capital. During the fourth quarter the Company will close two centers which are operating with negative cash flow at the expiration of their leases. On September 1, 1994, the Company opened Bowl America Gaithersburg, a 48-lane center with a full service diner style restaurant. A center was closed in May 1995 at the expiration of its lease. Results of Operations There was a $.28 per share profit for the thirteen-week period ending March 30, 1997, versus $.24 per share profit for the thirteen weeks ending March 31, 1996. For the current thirty-nine week period earnings per share were $.40 compared to $.38 for the same period a year ago. Operating revenues decreased 2% for the current nine-month period, versus a decrease of 8% in the comparable period a year ago. Heavy use of promotional pricing in the prior year caused a lower average game rate but created increased linage and food and beverage sales. In the current year the average game rate was up but the loss of traffic depressed food and merchandise sales. In the prior year the Blizzard of '96 and the extreme cold took a heavy toll on our northern market during the third quarter. The Company is continuing 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. Operating expenses decreased 3% in the current nine-month period versus a 5% decrease in the prior year. Employee compensation and benefits were down 2% this period versus a 5% decrease in the prior year period, the change in the prior year resulting mainly from the difference in the number of centers in operation. Maintenance expense for the nine-month period was down 9% versus a decline of 3% last year which included unusually high snow removal costs. Advertising costs decreased 17% in the current nine-month period. Utility costs decreased 4% in the current thirth-nine week period versus a decrease of 2% in the prior year period. Rent expense decreased 9% in the current nine-month period and 11% in the prior period, the decrease a result of reduced sales at some leased locations. Depreciation and amortization expenses were flat for the thirty-nine week period versus an increase of 3% in the prior period. The increase last year was due mainly to the Gaithers- burg location being open for the full period. S.E.C. FORM 10-Q March 30, 1997 PART II - OTHER INFORMATION An 8-K was filed in March 1997 referring to the resignation of a member of the Board of Directors. 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 May 14, 1997 Leslie H. Goldberg Date Leslie H. Goldberg President May 14, 1997 Cheryl A. Dragoo Date Cheryl A. Dragoo Controller EX-27 2 ART. 5 FDS FOR 3RD QUARTER 10-Q
5 1,000 U.S. DOLLARS 1 9-MOS JUN-29-1997 MAR-30-1997 2,041 3,859 0 0 669 12,520 44,032 20,376 40,582 4,094 0 0 0 568 32,966 40,582 6,155 21,019 2,022 17,867 0 0 0 3,595 1,342 2,253 0 0 0 2,253 .40 .40
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