-----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, PpYW4y3g0145s8145ITowde22U59yRlWCj0U8sfepcN5PJKSmqbeUcJgQ4GSzVCU wuA9iNUl9G42lfEwaUEXgQ== 0000013573-00-000003.txt : 20000510 0000013573-00-000003.hdr.sgml : 20000510 ACCESSION NUMBER: 0000013573-00-000003 CONFORMED SUBMISSION TYPE: 10-Q PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 20000326 FILED AS OF DATE: 20000509 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: 623323 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 26, 2000 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 23, 2000 Class A Common Stock, 3,384,070 $.10 par value Class B Common Stock 1,488,826 $.10 par value BOWL AMERICA INCORPORATED AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF EARNINGS PART I - FINANCIAL INFORMATION
Thirteen Weeks Ended Thirty-nine Weeks Ended March 26, March 28, March 26, March 28, 2000 1999 2000 1999 _______________________ __________________________ Operating Revenues Bowling and other $6,253,655 $6,277,771 $15,815,713 $15,260,629 Food and merchandise sales 2,428,802 2,430,919 6,207,692 6,027,827 _________ _________ __________ __________ 8,682,457 8,708,690 22,023,405 21,288,456 Operating Expenses Compensation and benefits 3,138,923 3,110,736 8,991,936 8,849,954 Cost of bowling and other 1,445,483 1,485,810 4,327,715 4,286,411 Cost of food and mdse sales 759,114 746,054 1,949,708 1,906,486 Depreciation and amortization 531,828 567,237 1,654,286 1,711,142 General and administrative 196,631 212,715 560,473 664,194 _________ _________ __________ __________ 6,071,979 6,122,552 17,484,118 17,418,187 Operating Income 2,610,478 2,586,138 4,539,287 3,870,269 Interest and dividend income 212,207 178,597 591,122 506,911 _________ _________ __________ __________ Earnings before provision for income taxes 2,822,685 2,764,735 5,130,409 4,377,180 Provision for income taxes 1,015,589 986,699 1,835,786 1,550,567 _________ _________ __________ __________ Net Earnings $1,807,096 $1,778,036 $ 3,294,623 $ 2,826,613 Earnings per share $.36 $.32 $.65 $.51 Weighted average shares outstanding 4,952,177 5,375,287 5,110,903 5,517,778 Dividends paid $566,232 $571,211 $1,661,640 $1,696,710 Per share, Class A $.11 $.105 $.32 $.305 Per share, Class B $.11 $.105 $.32 $.305 CONSOLIDATED STATEMENT OF COMPREHENSIVE EARNINGS Net earnings $1,807,096 $1,778,036 $ 3,294,623 $ 2,826,613 Other comprehensive earnings net of tax Unrealized (loss) gain on available-for-sale securities (381,475) (758,868) 456,164 1,375,187 _________ _________ _________ _________ Comprehensive earnings $1,425,621 $1,019,168 $ 3,750,787 $ 4,201,800
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 26, 2000 June 27, 1999 _______________ _____________ ASSETS Current Assets Cash and cash equivalents $ 1,813,134 $ 1,557,225 Short-term investments 10,705,120 7,690,576 Inventories 541,917 618,875 Prepaid expenses and other 858,475 482,279 Income taxes refundable - 89,194 Deferred income taxes 15,000 15,000 __________ __________ Total Current Assets 13,933,646 10,453,149 Property, Plant and Equipment less accumulated depreciation of $25,185,528 and $23,703,234 19,680,820 20,908,976 Other Assets Marketable equity securities 10,242,704 9,506,955 Cash surrender value-life insurance 339,666 384,925 Other long-term assets 257,387 493,931 __________ __________ TOTAL ASSETS $44,454,223 $41,747,936
BOWL AMERICA INCORPORATED AND SUBSIDIARIES CONSOLIDATED BALANCE SHEETS
March 26, 2000 June 27, 1999 _______________ _____________ LIABILITIES AND STOCKHOLDERS' EQUITY Current Liabilities Accounts payable $ 833,954 $ 738,040 Accrued expenses and payroll ded 1,014,949 977,400 Income taxes payable 934,664 - Other current liabilities 2,367,805 349,051 __________ __________ Total Current Liabilities 5,151,372 2,064,491 Noncurrent Deferred Income Taxes 4,485,585 4,206,000 TOTAL LIABILITIES 9,636,957 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 - 3,385,105 and 3,746,171 shares 338,510 374,617 Class B issued and outstanding - 1,488,826 and 1,508,716 shares 148,882 150,871 Additional paid-in capital 3,753,830 4,265,443 Unrealized gain on available-for- sale securities, net of tax 5,742,094 5,285,930 Retained earnings 24,833,950 25,400,584 __________ __________ TOTAL STOCKHOLDERS' EQUITY $34,817,266 $35,477,445 TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY $44,454,223 $41,747,936 See notes to financial information.
BOWL AMERICA INCORPORATED CONSOLIDATED STATEMENTS OF CASH FLOWS FOR THE THIRTY-NINE WEEKS ENDED MARCH 26, 2000 AND MARCH 28, 1999
March 26, March 28, 2000 1999 Cash Flows From Operating Activities: Net earnings $3,294,623 $ 2,826,613 Adjustments to reconcile net earnings to net cash provided by operating activities Depreciation and amortization 1,654,286 1,711,142 Changes in assets and liabilities Decrease in inventories 76,958 148,780 Increase in prepaid and other (376,182) (348,017) Decrease in other long-term assets 281,803 24,128 Increase (decrease) in accounts payable 95,914 (245,549) Increase in accrued expenses and payroll deductions 37,549 220,762 Increase in income taxes payable 1,023,858 187,923 Increase in other current liabilities 2,020,085 1,909,512 _________ _________ Net cash provided by operating activities $8,108,894 $ 6,435,294 _________ _________ Cash flows from investing activities Expenditures for property,plant,equip (426,130) (754,115) Net increase in short-term investments (3,014,544) (1,085,989) _________ _________ Net cash used in investing activities (3,440,674) (1,840,104) _________ _________ Cash flows from financing activities Payment of cash dividends (1,661,640) (1,696,710) Purchase of Common Stock (2,750,671) (2,771,516) _________ _________ Net cash used in financing activities (4,412,311) (4,468,226) _________ _________ Net Increase (decrease) in Cash and Cash Equivalents 255,909 126,964 Cash and Equivalents, Beginning of Year 1,557,225 1,944,462 _________ _________ Cash and Equivalents, End of Period $1,813,134 $ 2,071,426 Supplemental Disclosures of Cash Flow Information Cash paid during the period for Income taxes $ 811,914 $ 1,365,935 See notes to financial information.
BOWL AMERICA INCORPORATED AND SUBSIDIARIES NOTES TO FINANCIAL STATEMENTS For the Thirty-nine Weeks Ended March 26, 2000 1. Consolidated Financial Statements The consolidated balance sheet as of March 26, 2000, and the consolidated statements of earnings and cash flows for the three-month and nine-month periods ended March 26, 2000 and March 28, 1999 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 March 26, 2000, 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 March 26, 2000 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 16,000 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 March 26, 2000 Liquidity and Capital Resources Short-term investments consisting mainly of U.S. Treasury Bills and Notes, and cash totaled $12,518,000 at the end of the third quarter of fiscal 2000 or $1,252,000 higher than at the beginning of the quarter. The Company has purchased 380,956 shares of its previously outstanding common stock in the fiscal year for $2,751,000, including 273,636 shares in the third quarter for $1,989,000. These purchases have depressed the usual seasonal increase in cash. Current liabilities include $2 Million in league deposits of prize fund monies which are returned to the leagues at the end of the bowling season, generally during the fourth quarter. The Company is actively seeking property for additional locations. Cash and cash flow are sufficient to finance all currently planned purchases and construction. The Company's position in telecommun- ications stocks is an additional source of expansion capital. These securities are carried at their fair value on the last day of the quarter. For the nine month period ending March 26, 2000, the market value increased by approximately $736,000 resulting in an unrealized after tax gain of $456,000. There were no transactions in these stocks. 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. During the fourth quarter of fiscal 1999, the Company closed a center operating with negative cash flow. Results of Operations There was a $.36 per share profit for the thirteen-week period ending March 26, 2000, versus $.32 per share profit for the thirteen weeks ending March 28, 1999. For the current thirty-nine week period earnings per share were $.65 compared to $.51 for the comparable period a year ago. Operating revenues decreased slightly for the current three-month period but were up 3% for the current nine-month period. In the prior year the quarter showed an increase of 1% and the nine-month period was flat. In the third quarters of both years ice and snow caused closings at some locations resulting in lost revenues and additional costs for removal. Substantial tournament activity in February and March minimized the loss of income in the current three-month period. Food and beverage sales were up 1% in the current quarter and 4% through the nine-month period. Cost of food and beverage sales were up due to the increased sales. Operating expenses excluding depreciation and amortization decreased less than 1% in both the three-month and nine-month periods.In the prior year three-month period there was a slight increase but a 2% decrease for the nine-month period. Employee compensation and benefits were up 1% in the current quarter and up 2% in the nine-month period. Advertising costs increased 6% from the prior year quarter and 12% year-to-date mainly due to our glow-in-the-dark advertising campaign. Supplies and services expense decreased 4% for the nine months. Equipment expense was down 3% in the year-to-date period versus an increase of 15% in the comparable period a year ago when there were additional costs relating to pin and rental shoes. Utility costs decreased 2% in the current quarter compared to a 1% increase in the prior year quarter. For the nine-month periods the comparisons were decreases of less than 1% and 2% respectively. Depreciation and amortization expense decreased 3% in the year-to-date period versus a decrease of 1% in the prior year nine-month period. Rent expense for the year was down 11% due to the closing of a leased location. S.E.C. FORM 10-Q March 26, 2000 PART II - OTHER INFORMATION An 8K was filed in March 2000, with respect to the authorization of the Company's president to purchase at his discretion from time to time up to 600,000 shares of the Company's common stock on its behalf. 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 9, 2000 Leslie H. Goldberg Date Leslie H. Goldberg President May 9, 2000 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 JUL-02-2000 MAR-26-2000 1,813 10,243 0 0 542 13,934 44,866 25,186 44,454 5,151 0 0 0 487 34,330 44,454 6,208 22,023 1,950 17,484 0 0 0 5,130 1,836 3,294 0 0 0 3,294 .65 .65
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