-----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, BV1mFeq8edhBkT0xBlqUg/UIvxTEeULDoYX6G5W6c2iC2dDiJcbeMDMusgSVOw2w WMFrCmVLKGD8HEYboSw52w== 0000013573-00-000001.txt : 20000209 0000013573-00-000001.hdr.sgml : 20000209 ACCESSION NUMBER: 0000013573-00-000001 CONFORMED SUBMISSION TYPE: 10-Q PUBLIC DOCUMENT COUNT: 3 CONFORMED PERIOD OF REPORT: 19991226 FILED AS OF DATE: 20000208 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: 0627 FILING VALUES: FORM TYPE: 10-Q SEC ACT: SEC FILE NUMBER: 001-07829 FILM NUMBER: 527372 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 26, 1999 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 23, 2000 Class A Common Stock, 3,641,741 $.10 par value Class B Common Stock 1,505,826 $.10 par value BOWL AMERICA INCORPORATED AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF EARNINGS PART I - FINANCIAL INFORMATION
Thirteen Weeks Ended Twenty-six Weeks Ended December 26, December 27, December 26, December 27, 1999 1998 1999 1998 _______________________ __________________________ Operating Revenues Bowling and other $5,302,801 $5,145,267 $ 9,562,058 $ 8,982,858 Food, beverage and merchandise sales 2,071,108 2,027,273 3,778,890 3,596,908 _________ _________ __________ __________ 7,373,909 7,172,540 13,340,948 12,579,766 Operating Expenses Compensation and benefits 2,994,890 2,971,699 5,853,013 5,739,218 Cost of bowling and other 1,382,755 1,349,090 2,882,232 2,800,601 Cost of food and mdse sales 663,416 651,974 1,190,594 1,160,432 Depreciation and amortization 563,073 563,394 1,122,458 1,143,905 General and administrative 170,710 239,585 363,842 451,479 _________ _________ __________ __________ 5,774,844 5,775,742 11,412,139 11,295,635 Operating Income 1,599,065 1,396,798 1,928,809 1,284,131 Interest and dividend income 176,858 163,696 378,915 328,314 _________ _________ __________ __________ Earnings before provision for income taxes 1,775,923 1,560,494 2,307,724 1,612,445 Provision for income taxes 635,157 550,398 820,197 563,868 _________ _________ __________ __________ Net Earnings $1,140,766 $1,010,096 $ 1,487,527 $ 1,048,577 Earnings per share $.22 $.18 $.29 $.19 Weighted average shares outstanding 5,157,567 5,526,550 5,190,267 5,589,024 Dividends paid $543,645 $559,849 $1,095,408 $1,125,499 Per share, Class A $.105 $.10 $.21 $.20 Per share, Class B $.105 $.10 $.21 $.20 CONSOLIDATED STATEMENTS OF COMPREHENSIVE EARNINGS Net Earnings $1,140,766 $1,010,096 $ 1,487,527 $ 1,048,577 Other comprehensive earnings-net of tax Unrealized gain on avail- able for sale securities 645,520 1,944,417 837,639 2,134,055 _________ _________ _________ _________ Comprehensive earnings $1,786,286 $2,954,513 $ 2,325,166 $ 3,182,632
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 26, 1999 June 27, 1999 ________________ _____________ ASSETS Current Assets Cash and cash equivalents $ 2,272,331 $ 1,557,225 Short-term investments 8,993,699 7,690,576 Inventories 702,079 618,875 Prepaid expenses and other 461,341 482,279 Income taxes refundable - 89,194 Deferred income taxes 15,000 15,000 __________ __________ Total Current Assets 12,444,450 10,453,149 Property, Plant and Equipment less accumulated depreciation of $24,716,595 and $23,703,234 20,108,275 20,908,976 Other Assets Marketable equity securities 10,857,985 9,506,955 Cash surrender value-life insurance 339,666 384,925 Other long-term assets 257,386 493,931 __________ __________ TOTAL ASSETS $44,007,762 $41,747,936
BOWL AMERICA INCORPORATED AND SUBSIDIARIES CONSOLIDATED BALANCE SHEETS
December 26, 1999 June 27, 1999 _________________ _____________ LIABILITIES AND STOCKHOLDERS' EQUITY Current Liabilities Accounts payable $ 773,734 $ 738,040 Accrued expenses and payroll ded 630,645 977,400 Income taxes payable 415,876 - Other current liabilities 1,521,530 349,051 __________ __________ Total Current Liabilities 3,341,785 2,064,491 Noncurrent Deferred Income Taxes 4,719,391 4,206,000 TOTAL LIABILITIES 8,061,176 6,270,491 __________ __________ 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 - 3,641,741 and 3,746,171 shares 364,173 374,617 Class B issued and outstanding - 1,505,826 and 1,508,716 150,582 150,871 Additional paid-in capital 4,161,920 4,265,443 Unrealized gain on securities available-for-sale, 6,123,569 5,285,930 Retained earnings 25,146,342 25,400,584 __________ __________ TOTAL STOCKHOLDERS' EQUITY $35,946,586 $35,477,445 TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY $44,007,762 $41,747,936 See notes to financial information.
BOWL AMERICA INCORPORATED CONSOLIDATED STATEMENTS OF CASH FLOWS FOR THE TWENTY-SIX WEEKS ENDED DECEMBER 26, 1999 AND DECEMBER 27, 1998
December 26, December 27, 1999 1998 Cash Flows From Operating Activities: Net earnings $1,487,527 $1,048,577 Adjustments to reconcile net earnings to net cash provided by operating activities Depreciation and amortization 1,122,458 1,143,905 Changes in assets and liabilities Increase in inventories (83,204) (39,353) Decrease (increase) in prepaid & other 20,938 (83,725) Decrease in other long-term assets 281,804 53,529 Increase (decrease) in accounts payable 35,694 (339,117) Decrease in accrued expenses and payroll deductions (346,755) (22,871) Increase in income taxes payable 505,070 8,476 Increase in other current liabilities 1,173,810 1,076,078 _________ _________ Net cash provided by operating activities $4,197,342 $2,845,499 _________ _________ Cash flows from investing activities Expenditures for property,plant,equip (321,757) (609,882) Net (increase) decrease in short-term investments (1,303,123) 2,803 _________ _________ Net cash used in investing activities (1,624,880) (607,079) _________ _________ Cash flows from financing activities Payment of cash dividends (1,095,408) (1,125,499) Purchase of Class A & B Common Stock (761,948) (1,581,832) _________ _________ Net cash used in financing activities (1,857,356) (2,707,331) _________ _________ Net Increase (Decrease) in Cash and Equivalents 715,106 (468,911) Cash and Equivalents, Beginning of Year 1,557,225 1,944,462 _________ _________ Cash and Equivalents, End of Period $2,272,331 $1,475,551 Supplemental Disclosures of Cash Flow Information Cash paid during the period for Income taxes $ 315,127 $ 558,683 See notes to financial information.
BOWL AMERICA INCORPORATED AND SUBSIDIARIES NOTES TO FINANCIAL STATEMENTS For the Twenty-six Weeks Ended December 26, 1999 1. Consolidated Financial Statements The consolidated balance sheets as of December 26, 1999, and the consolidated statements of earnings and comprehensive earnings and cash flows for the three-month and six-month periods ended December 26, 1999 and December 27, 1998, 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. The information included in this Form 10-Q should be read in conjunction with the financial statements and notes thereto for the year ended June 27, 1999 included in the Company's Annual Report on Form 10-K. 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 26, 1999, 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 27, 1999. 2. Marketable Equity Securities Marketable equity securities are carried at fair value in accordance with the provisions of SFAS No. 115. The telecommunications stocks included in the portfolio as of December 26, 1999 were: 3,946 shares of Alltel 9,291 shares of American Telephone & Telegraph 18,784 shares of Bell Atlantic 27,572 shares of Bell South 8,028 shares of Lucent Technologies 5,612 shares of Media One 45,580 shares of SBC 32,000 shares of SprintFon 8,000 shares of SprintPCS 5,765 shares of US West 13,560 shares of Vodafone/AirTouch BOWL AMERICA INCORPORATED MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS December 26, 1999 Liquidity and Capital Resources Short-term investments, consisting mainly of U.S. Treasury Bills and Notes, and cash totaled $11,266,000 at the end of the second quarter of fiscal 2000 or $2,262,000 higher than at the beginning of the quarter. Since July 1999, the Company has expended $762,000 for the purchase of 107320 shares of its previously outstanding common stock. Subsequent to the end of the quarter, an additional 38,896 shares were purchased at a cost of $287,000. The Company is actively seeking property for development of additional centers. Cash and cash flow are sufficient to finance all currently planned purchases and construction. The Company's marketable securities, primarily in telecommunications stocks are another source of expansion capital. These securities are carried at their fair value on the last day of the quarter. For the six-month period ending December 26, 1999, the market value increased by approximately $2,209,000 resulting in an unrealized after tax gain of $1,369,000. While no factors requiring a change in the dividend rate are apparent, the Board of Directors decides the amount and timing of any dividend at its quarterly meeting based on its appraisal of the state of the business and its estimate of future opportunities. The Company closed a center operating with a negative cash flow in May 1999. Results of Operations There was a $.22 per share profit for the thirteen-week period ending December 26, 1999, versus an $.18 per share profit for the thirteen weeks ended December 27, 1998. For the current twenty-six week period earnings per share were $.29 compared to $.19 for the comparable period a year ago. Operating revenues increased 6% for the current six-month period versus a decrease of 1% in the comparable period a year ago. Open play and special event bowling improved and the average game rate was up over the prior year period minimizing the effect of decreased league bowling. Increases in ancillary revenues are the result of the higher casual bowler traffic. However, winter storms since the end of the quarter will affect linage and revenues in the third quarter. For the six-month period food, beverage and merchandise sales were up 5% versus a 2% decrease in the prior year six-month period. Cost of sales increased due to the higher sales. Operating expenses excluding depreciation and amortization increased 1% in the current six-month period versus a 4% decrease in the comparable period last year. Employee compensation and benefits were up 2% this period versus no change in the prior year period. In the current six-month period supplies and services expense decreased 2%. Advertising costs increased 15% from the prior six-month period partially due to support of glow-in-the-dark bowling. Equipment expense increased in the current year by 5% primarily due to the higher costs associated with bowling pins and rental shoes. Utility costs were flat in the current six-month period. Weather related utility costs and snow removal costs could influence third quarter results. Depreciation and amortization expense decreased 2% in the current year period versus an increase of 1% in the comparable period last year. Rent expense decreased 12% in the current period mainly due to the closing of a leased center. YEAR 2000 Bowl America has experienced no Year 2000 related problems to date with either internal operations or vendors. BOWL AMERICA INCORPORATED AND SUBSIDIARIES S.E.C. FORM 10-Q December 26, 1999 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 8, 2000 Leslie H. Goldberg Date Leslie H. Goldberg President February 8, 2000 Cheryl A. Dragoo Date Cheryl A. Dragoo Controller EX-27 2 ART. 5 FDS FOR 2ND QUARTER 10-Q
5 1,000 U.S. DOLLARS 1 6-MOS JUl-03-2000 DEC-26-1999 2,272 10,858 0 0 702 12,444 44,825 24,717 44,008 3,342 0 0 0 515 35,432 44,008 3,779 13,341 1,191 11,412 0 0 0 2,308 820 1,488 0 0 0 1,488 .29 .29
EX-20 3 NEWS RELEASE DATED FEBRUARY 8, 2000 Tenth Consecutive Quarterly Earnings Increase at Bowl America Bowl America Inc., the Alexandria, Virginia based operator of bowling centers, reported a 22% increase in second quarter per share earnings, from $.18 to $.22. This was the tenth consecutive quarter that earnings have increased over the comparable prior year quarter and it followed the best first quarter in the Company's history. Earnings for the first half of the fiscal year stand at $.29 compared to $.19 last year. EBIDTA for the past 12 months of $8.2 Million was a record. Renewed interest in the sport by a broader audience, partially due to Glow-in-the-Dark bowling, has generated an upturn in traffic for open play and special event games and with it commensurate increases in food, beverage and merchandise sales. This has offset the decline in league bowling. Winter storms since the end of the quarter will affect lineage and revenues in the usually busiest third quarter. However, the fourth quarter will include league make-up games and an additional week of income due to the 53-week accounting year. The Company today paid a dividend at the new rate of $.11 per share. This is the twenty-eighth consecutive year of increased dividend payments. Bowl America operates 22 bowling centers in Maryland, Virginia and Florida and its stock trades on the American Stock Exchange with the symbol BWL.A. The Company's SEC Form 10-Q is available at www.sec.gov on the EDGAR System. -----END PRIVACY-ENHANCED MESSAGE-----