-----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, EuXz0DMbJpRy6uY1u2LQN5g7LY4iGNco6n8Mt7cdoSajAde+xJOoHMovbgZTaXsk rNOfMZYxRcokE7QLrhLCOg== /in/edgar/work/0000013573-00-000009/0000013573-00-000009.txt : 20001116 0000013573-00-000009.hdr.sgml : 20001116 ACCESSION NUMBER: 0000013573-00-000009 CONFORMED SUBMISSION TYPE: 10-Q PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 20001001 FILED AS OF DATE: 20001115 FILER: COMPANY DATA: COMPANY CONFORMED NAME: BOWL AMERICA INC CENTRAL INDEX KEY: 0000013573 STANDARD INDUSTRIAL CLASSIFICATION: [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: 769408 BUSINESS ADDRESS: STREET 1: 6446 EDSALL RD CITY: ALEXANDRIA STATE: VA ZIP: 22312 BUSINESS PHONE: 7039416300 MAIL ADDRESS: STREET 1: P O BOX 1288 CITY: SPRINGFIELD STATE: VA ZIP: 22151 10-Q 1 0001.txt 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 October 1, 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 October 29, 2000 Class A Common Stock, 3,578,507 $.10 par value Class B Common Stock 1,430,085 $.10 par value BOWL AMERICA INCORPORATED AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF EARNINGS (Unaudited) PART I - FINANCIAL INFORMATION
Thirteen Weeks Ended October 1, September 26, 2000 1999 _______________________ Operating Revenues Bowling and other $4,525,085 $4,259,257 Food, beverage and merchandise sales 1,869,082 1,707,782 _________ _________ 6,394,167 5,967,039 Operating Expenses Compensation and benefits 3,099,453 2,858,123 Cost of bowling and other 1,436,206 1,499,477 Cost of food,beverage and mdse sales 619,554 527,178 Depreciation and amortization 493,845 559,385 General and administrative 210,643 193,132 _________ _________ 5,859,701 5,637,295 Operating Income 534,466 329,744 Interest and dividend income 400,339 202,057 _________ _________ Earnings before provision for income taxes 934,805 531,801 Income tax provision 335,595 185,040 _________ _________ Net Earnings $ 599,210 $ 346,761 Earnings per share $ .12 $ .06* Weighted average shares outstanding 5,095,998 5,484,115 Dividends paid $566,798 $551,763 Per share, Class A $.11 $.10* Per share, Class B $.11 $.10* *Restated for 5% stock dividend paid July 26, 2000 CONSOLIDATED STATEMENTS OF COMPREHENSIVE EARNINGS (Unaudited) Net Earnings $ 599,210 $346,761 Other comprehensive earnings net of tax Unrealized (loss) gain on available -for-sale securities (941,880) 192,119 _______ _______ Comprehensive (loss)earnings $(342,670) $538,880
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 (Unaudited)
October 1, 2000 July 2, 2000 __________________ _____________ ASSETS Current Assets Cash and cash equivalents $ 1,160,816 $ 1,523,242 Short-term investments 6,166,037 8,873,682 Inventories 802,328 657,628 Prepaid expenses and other 568,307 440,318 __________ __________ Total Current Assets 8,697,488 11,494,870 Property, Plant and Equipment less accumulated depreciation of $25,853,762 and $25,416,493 21,557,932 19,367,989 Other Assets Marketable equity securities 7,673,399 9,168,446 Cash surrender value-life insurance 390,976 388,184 Other long-term assets 258,162 291,810 __________ __________ TOTAL ASSETS $38,577,957 $40,711,299
LIABILITIES AND STOCKHOLDERS' EQUITY Current Liabilities Accounts payable $ 671,488 $ 688,213 Accrued expenses 853,242 893,493 Income taxes payable 282,988 129,390 Deferred income taxes 23,000 23,000 Other current liabilities 704,416 430,808 __________ __________ Total Current Liabilities 2,535,134 2,164,904 Noncurrent Deferred Income Taxes 3,124,833 3,678,000 TOTAL LIABILITIES 5,659,967 5,842,904 __________ __________ 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 - 3,579,067 and 3,406,070 shares 357,907 340,607 Class B issued and outstanding - 1,430,085 and 1,488,826 143,008 148,883 Additional paid-in capital 4,036,329 3,959,169 Unrealized gain on securities available-for-sale, net of tax 4,304,541 5,246,421 Retained earnings 24,076,205 25,173,315 __________ __________ TOTAL STOCKHOLDERS' EQUITY $32,917,990 $34,868,395 TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY $38,577,957 $40,711,299 See notes to financial information.
BOWL AMERICA INCORPORATED CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) FOR THE THIRTEEN WEEKS ENDED OCTOBER 1, 2000 AND SEPTEMBER 26, 1999
October 1, September 26, 2000 1999 Cash Flows From Operating Activities: Net earnings $ 599,210 $ 346,761 Adjustments to reconcile net earnings to net cash provided by operating activities Depreciation and amortization 493,845 559,385 Changes in assets and liabilities Increase in inventories (144,700) (167,469) Increase in prepaid and other (127,989) (83,428) Decrease in other long-term assets 30,856 235,054 Decrease in accounts payable (16,725) (209,417) Decrease in accrued expenses (40,251) (135,604) Increase in income taxes payable 153,598 184,570 Increase in other current liabilities 274,949 234,025 _________ _________ Net cash provided by operating activities $1,222,793 $ 963,877 _________ _________ Cash flows from investing activities Expenditures for property,plant,equip (2,683,788) (108,715) Net decrease in short-term investments 2,707,645 447,734 _________ _________ Net cash provided by investing activities 23,857 339,019 _________ _________ Cash flows from financing activities Payment of cash dividends (566,798) (551,763) Purchase of Class A common stock (902) (526,903) Purchase of Class B common stock (1,041,376) (20,230) _________ _________ Net cash used in financing activities (1,609,076) (1,098,896) _________ _________ Net (Decrease) Increase in Cash and Equivalents (362,426) 204,000 Cash and Equivalents, Beginning of Qtr 1,523,242 1,557,225 _________ _________ Cash and Equivalents, End of Quarter $1,160,816 $1,761,225 Supplemental Disclosures of Cash Flow Information Cash paid during the period for Income taxes $ 181,997 $ 470 See notes to financial information.
BOWL AMERICA INCORPORATED AND SUBSIDIARIES NOTES TO FINANCIAL STATEMENTS For the Thirteen Weeks Ended October 1, 2000 1. Consolidated Financial Statements The accompanying unaudited consolidated financial statements of Bowl America Incorporated and subsidiaries (the "Company"), have been prepared pursuant to the rules and regulations of the Securities and Exchange Commission. The consolidated balance sheet as of July 2, 2000 has been derived from the Company's July 2, 2000 audited financial statements. Certain information and note disclosures normally included in the annual financial statements, prepared in accordance with generally accepted accounting principles, have been condensed or omitted pursuant to those rules and regulations, although the Company believes that the disclosures made are adequate to make the information presented not misleading. In the opinion of management, the accompanying unaudited consolidated financial statements reflect all adjustments, and reclassifications (all of which are of a normal recurring nature) that are necessary for the fair presentation for the periods presented. It is suggested that these consolidated financial statements be read in conjunction with the consolidated financial statements and notes thereto included in the Company's latest annual report to the Securities and Exchange Commission on Form 10-K for the year ended July 2, 2000. 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 October 1, 2000 were: 3,946 shares of Alltel 14,316 shares of American Telephone & Telegraph 27,572 shares of Bell South 8,028 shares of Lucent Technologies 9,969 shares of Qwest Communications 45,580 shares of SBC 32,000 shares of SprintFon 16,000 shares of SprintPCS 18,784 shares of Verizon 13,560 shares of Vodafone/Airtouch MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS October 1, 2000 Liquidity and Capital Resources Short-term investments consisting mainly of U.S. Treasury Bills and Notes, and cash totaled $7,327,000 at the end of the first quarter of fiscal 2001 or $3,070,000 lower than at the beginning of the quarter. During the quarter the Company purchased 130,172 shares of previously outstanding Class B common stock for $1,042,000 and spent $2,250,000 for the purchase of Bowl America Glen Burnie at the expiration of its lease. Due to feasibility issues the contract for a site mentioned in previous reports was terminated. The Company continues to seek viable properties. Cash and cash flow are sufficient to finance all currently planned purchases and construction. The Company has maintained its fiscal year end 2000 position in marketable securities, primarily telecommunications stocks, as a further source of expansion capital. These securities are carried at their fair value on the last day of the quarter. For the three-month period ended October 1, 2000, the market value decreased by $1,495,000 to approximately $7.7 Million. During the quarter the Company received $219,000 from the AT&T/Media One merger. 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. In June 2000, the Board of Directors declared a 5% stock dividend which was paid on July 26, 2000. Applicable share and per share data for prior periods have been restated for the effect of the split. Subsequent to the end of the quarter, the Company closed a center operating at break-even. Results of Operations For the second year in a row, the typically seasonally slow months of July and August produced profits. Both league and open play linage and earnings were up over the previous year, but it should be noted that the increases are not necessarily indicative of results to be expected for the year. There was a $.12 per share profit for the thirteen-week period ending October 1, 2000,the highest first quarter in the Company's history, which exceeded the prior year first quarter record of $.06 per share. Of the current year earnings $.027 per share is attributable to the income received from the AT&T/Media One merger mentioned above. In last year's first quarter funds received from the Vodafone/AirTouch merger contributed $.006 per share to net earnings. Operating revenues increased 7% in the current period versus an increase of 10% in the prior year period. Food, beverage and merchandise sales were up 9% in both periods and costs were up due to the higher volume of traffic. Operating expenses excluding depreciation and amortization increased 4% in the current quarter versus a 3% increase in the comparable quarter last year. Advertising costs decreased over 30% from the prior year period. Last year our costs were higher because we increased our television advertising in support of glow-in-the-dark bowling. Equipment expense decreased 10% in the current year after a 10% increase last year. Costs associated with bowling pins and rental shoes are lower this year than last year through the same period. Employee compensation and benefits expenses were up 8% this year primarily driven by costs for overtime pay resulting from the tight labor market. Last year this category of expense was up 3%. Depreciation and amortization expense decreased 12% in the current year quarter and 4% in the comparable period last year as several large capital assets have reached full depreciation. Rent expense decreased 15% in the current period and 12% in the prior year period due to operating fewer leased locations. BOWL AMERICA INCORPORATED AND SUBSIDIARIES S.E.C. FORM 10-Q October 1, 2000 PART II - OTHER INFORMATION An 8K was filed in July 2000, 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 14, 2000 Leslie H. Goldberg Date Leslie H. Goldberg President November 14, 2000 Cheryl A. Dragoo Date Cheryl A. Dragoo Controller EX-27 2 0002.txt ART. 5 FDS FOR 1ST QUARTER 10-Q
5 1,000 U.S. DOLLARS 1 3-MOS JUL-01-2001 OCT-01-2000 1,161 7,673 0 0 802 8,697 47,412 25,854 38,578 2,535 0 0 0 501 32,417 38,578 1,869 6,394 620 5,860 0 0 0 935 336 599 0 0 0 599 .12 .12
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