-----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, RpwnMp7aqTGAzQVC6PA+DOdbWTleFQ5tRazuxam4fQ68B9uyxZTP+rAkZ8w4C6L7 bxtTqNHvpkmVsQqZWQTMbQ== 0000013573-97-000010.txt : 19971114 0000013573-97-000010.hdr.sgml : 19971114 ACCESSION NUMBER: 0000013573-97-000010 CONFORMED SUBMISSION TYPE: 10-Q PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 19970928 FILED AS OF DATE: 19971112 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: SEC FILE NUMBER: 001-07829 FILM NUMBER: 97712704 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 September 28, 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 October 26, 1997 Class A Common Stock, 4,125,998 $.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 September 28, September 29, 1997 1996 _______________________ Operating Revenues Bowling and other $3,830,878 $3,743,733 Food and merchandise sales 1,585,976 1,621,756 _________ _________ 5,416,854 5,365,489 Operating Expenses Compensation and benefits 2,779,558 2,840,847 Cost of bowling and other 1,530,332 1,590,394 Cost of food and mdse sales 511,775 572,657 Depreciation and amortization 550,614 500,880 General and administrative 191,584 181,525 _________ _________ 5,563,863 5,686,303 Operating Loss (147,009) (320,814) Interest and dividend income 135,098 121,467 _________ _________ Loss before pro- vision for income taxes (11,911) (199,347) Income tax benefit (12,615) (83,732) _________ _________ Net Earnings (loss) $ 704 $ (115,615) Earnings (loss) per share $ .00 $(.02) Weighted average shares outstanding 5,662,144 5,682,456 Dividends paid $566,214 $538,048 Per share, Class A $.10 $.095 Per share, Class B $.10 $.095
The operating results for these thirteen (13) 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
September 28, 1997 June 29, 1997 __________________ _____________ ASSETS Current Assets Cash and cash equivalents $ 1,826,688 $ 1,797,656 Short-term investments 5,507,943 6,375,039 Inventories 900,982 700,200 Prepaid expenses and other 539,723 459,652 Income taxes refundable 112,597 32,982 __________ __________ Total Current Assets 8,887,933 9,365,529 Property, Plant and Equipment less accumulated depreciation of $20,566,155 and $20,052,750 23,465,493 23,454,699 Other Assets Marketable securities available-for-sale 4,542,878 4,363,058 Cash surrender value-life insurance 357,601 354,206 Other long-term assets 217,332 465,079 __________ __________ TOTAL ASSETS $37,471,237 $38,002,571
BOWL AMERICA INCORPORATED AND SUBSIDIARIES CONSOLIDATED BALANCE SHEETS
September 28, 1997 June 29, 1997 __________________ _____________ LIABILITIES AND STOCKHOLDERS' EQUITY Current Liabilities Accounts payable $ 614,078 $ 992,397 Accrued expenses and payroll ded 900,264 840,502 Other current liabilities 555,753 382,840 Current deferred income taxes 70,000 70,000 __________ __________ Total Current Liabilities 2,140,095 2,285,739 Noncurrent Deferred Income Taxes 2,403,332 2,335,000 TOTAL LIABILITIES 4,543,427 4,620,739 __________ __________ 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 - 4,125,998 shares 412,600 412,600 Class B issued and outstanding - 1,536,146 153,614 153,614 Additional paid-in capital 4,896,835 4,896,835 Unrealized gain on securities available-for-sale, net of tax 2,284,521 2,173,033 Retained earnings 25,180,240 25,745,750 __________ __________ TOTAL STOCKHOLDERS' EQUITY $32,927,810 $33,381,832 TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY $37,471,237 $38,002,571 See notes to financial information.
BOWL AMERICA INCORPORATED CONSOLIDATED STATEMENTS OF CASH FLOWS FOR THE THIRTEEN WEEKS ENDED SEPTEMBER 28, 1997 AND SEPTEMBER 29, 1996
September 28, September 29, 1997 1996 Cash Flows From Operating Activities: Net earnings (loss) $ 704 $ (115,615) Adjustments to reconcile net loss to net cash provided by (used in) operating activities Depreciation and amortization 550,614 500,880 Changes in assets and liabilities Increase in inventories (200,782) (123,162) (Increase)decrease in prepaid and other (80,071) 35,257 Decrease in other long-term assets 244,352 303,410 Decrease in accounts payable (378,319) (805,901) Increase (decrease) in accrued expenses and payroll deductions 59,762 (22,322) Increase in income taxes refundable (79,615) (86,402) Increase in other current liabilities 172,913 187,547 _________ _________ Net cash provided by (used in) operating activities $ 289,558 $(126,308) _________ _________ Cash flows from investing activities Expenditures for property,plant,equip (561,408) (888,333) Net decrease in short-term investments 867,096 1,841,911 _________ _________ Net cash provided by investing activities 305,688 953,578 _________ _________ Cash flows from financing activities Payment of cash dividends (566,214) (538,048) _________ _________ Net cash used in financing activities (566,214) (538,048) _________ _________ Net Increase in Cash and Equivalents 29,032 289,222 Cash and Equivalents, Beginning of Qtr 1,797,656 2,120,862 _________ _________ Cash and Equivalents, End of Quarter $1,826,688 $2,410,084 Supplemental Disclosures of Cash Flow Information Cash paid during the period for Income taxes $ 67,000 $ 2,670 See notes to financial information.
BOWL AMERICA INCORPORATED AND SUBSIDIARIES NOTES TO FINANCIAL STATEMENTS For the Thirteen Weeks Ended September 28, 1997 1. Consolidated Financial Statements The consolidated balance sheets as of September 28, 1997, and the consolidated statements of earnings and cash flows for the three-month periods ended September 28, 1997 and September 29, 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 September 28, 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 29, 1997. 2. Earnings Per Share The Financial Accounting Standards Board issued SFAS No. 128, "Earnings per Share" in February 1997. The effect of adopting this standard has no impact on the earnings per share calculation for the quarters ended September 28, 1997, and September 29, 1996. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS September 28, 1997 Liquidity and Capital Resources Short-term investments consisting mainly of U.S. Treasury Bills and Notes, and cash totaled $7,335,000 at the end of the first quarter of fiscal 1998 or $838,000 lower than at the beginning of the quarter. The decrease relates primarily to the seasonal nature of bowling participation. During the quarter the Company expended approximately $600,000 for capital assets including upgraded bowling equipment and glow-in-the-dark light and sound systems. In addition, the Company is continuing its program of replacing leased amusement game machines with owned machines. Expenditures are also planned as the Company continues 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 1997 position in telecommunications stocks as a further source of expansion capital. On February 1, 1997, the 16-lane expansion from 32 to 48 lanes at Bowl America Dranesville began operation. During the fourth quarter of fiscal 1997, the Company closed two centers which, at the expiration of their leases, were operating with negative cash flows. A center was closed in May 1995 at the expiration of its lease. Results of Operations As noted above, the Company operated two fewer centers in the fiscal 1998 period than in the prior year period and one fewer in the first quarter of fiscal 1997 than in fiscal 1996. All comparisons in this report are significantly influenced by the change in the number of operating locations. There was a profit of less than $.01 per share in the current quarter versus a $.02 per share loss in the first quarter of last year. Over half of the improvement in earnings is a result of closing the two unprofitable centers. Operating revenues increased 1% this quarter versus a decrease of 5% in the first quarter last year. Linage for the period was up, however the average game rate decreased mainly due to our "Rolling Rewards" summer promotion where we rewarded students with a free game for each "A" on their report cards. Amusement game income increased substantially due to the installation of more current and technologically advanced games. While food and beverage sales in total were down slightly, at comparable centers sales increased in large part because of the increased traffic during our summer promotion. Operating expenses excluding depreciation and amortization decreased 3% in the current quarter versus a 6% decrease in in the comparable quarter last year. Increases in depreciation and amortization expense of 10% in the currect quarter relates to the Dranesville expansion and glow-in the-dark equipment and amusement game purchases. Employee compensation and benefits were down 2% this period versus a 6% increase in the prior year period. Advertising costs decreased 9% from the prior year period and decreased 12% in the first quarter a year ago. Media campaigns utilizing newspaper and direct mail instead of more expensive television advertising have been largely responsible for the decrease. Supplies and services expense increased partially due to costs of glow-in-the-dark and amusement game supplies. Utility costs decreased 5% in the current quarter compared to a 6% decrease in the prior year quarter. Rent expense decreased 9% in the current period and 15% in the prior year period, the decrease mainly a result of the change in the number of leased locations. BOWL AMERICA INCORPORATED AND SUBSIDIARIES S.E.C. FORM 10-Q September 28, 1997 PART II - OTHER INFORMATION An 8K was filed in August 1997, which referred to changes in an employment contract. 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 November 12, 1997 Leslie H. Goldberg Date Leslie H. Goldberg President November 12, 1997 Cheryl A. Dragoo Date Cheryl A. Dragoo Controller EX-27 2 ART. 5 FDS FOR 1ST QUARTER 10-Q
5 1,000 U.S. DOLLARS 1 3-MOS JUN-28-1998 SEP-28-1997 1,827 4,542 0 0 901 8,888 44,032 20,566 37,471 2,215 0 0 0 566 32,362 37,471 1,586 5,417 512 5,564 0 0 0 (12) (13) 1 0 0 0 1 .00 .00
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