-----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, MhFKY9qYTohqDpI/MJXpXpQOd5FkFEZ7184Y0aO+AsToWnuQ5nxqWXR9MB+jRm1E Snj1gbZJEz1FFcDEaON58w== 0000013573-01-500003.txt : 20010517 0000013573-01-500003.hdr.sgml : 20010517 ACCESSION NUMBER: 0000013573-01-500003 CONFORMED SUBMISSION TYPE: 10-Q PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 20010401 FILED AS OF DATE: 20010516 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: 1641368 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 baqmar01.txt FORM 10-Q 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 April 1, 2001 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 29, 2001 Class A Common Stock, 3,478,976 $.10 par value Class B Common Stock 1,416,427 $.10 par value BOWL AMERICA INCORPORATED AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF EARNINGS PART I - FINANCIAL INFORMATION
Thirteen Weeks Ended Thirty-nine Weeks Ended April 01, March 26, April 01, March 26, 2001 2000 2001 2000 _______________________ __________________________ Operating Revenues Bowling and other $6,465,529 $6,253,655 $16,344,999 $15,815,713 Food and merchandise sales 2,647,759 2,428,802 6,737,817 6,207,692 _________ _________ __________ __________ 9,113,288 8,682,457 23,082,816 22,023,405 Operating Expenses Compensation and benefits 3,320,547 3,138,923 9,538,142 8,991,936 Cost of bowling and other 1,477,447 1,445,483 4,293,696 4,327,715 Cost of food and mdse sales 837,795 759,114 2,181,949 1,949,708 Depreciation and amortization 487,994 531,828 1,469,833 1,654,286 General and administrative 464,525 196,631 908,843 560,473 _________ _________ __________ __________ 6,588,308 6,071,979 18,392,463 17,484,118 Operating Income 2,524,980 2,610,478 4,690,353 4,539,287 Interest and dividend income 186,524 212,207 760,538 591,122 _________ _________ __________ __________ Earnings before provision for income taxes 2,711,504 2,822,685 5,450,891 5,130,409 Provision for income taxes 973,500 1,015,589 1,956,900 1,835,786 _________ _________ __________ __________ Net Earnings $1,738,004 $1,807,096 $ 3,493,991 $ 3,294,623 Earnings per share $.35 $.34* $.70 $.61* Weighted average shares outstanding 4,931,439 5,199,785* 5,011,481 5,366,448* Dividends paid $575,417 $566,232 $1,693,210 $1,661,640 Per share, Class A $.115 $.105* $.335 $.30* Per share, Class B $.115 $.105* $.335 $.30* *Restated for 5% stock dividend paid July 26, 2000. CONSOLIDATED STATEMENT OF COMPREHENSIVE EARNINGS Net earnings $1,738,004 $1,807,096 $ 3,493,991 $ 3,294,623 Other comprehensive earnings net of tax Unrealized (loss) gain on available-for-sale securities (199,634) (381,475) (1,731,104) 456,164 _________ _________ _________ _________ Comprehensive earnings $1,538,370 $1,425,621 $ 1,762,887 $ 3,750,787
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
April 1, 2001 July 2, 2000 _______________ _____________ ASSETS Current Assets Cash and cash equivalents $ 2,485,461 $ 1,523,242 Short-term investments 8,521,134 8,873,682 Inventories 568,174 657,628 Prepaid expenses and other 699,942 440,318 __________ __________ Total Current Assets 12,274,711 11,494,870 Property, Plant and Equipment less accumulated depreciation of $26,235,324 and $25,416,493 21,081,051 19,367,989 Other Assets Marketable equity securities 6,420,662 9,168,446 Cash surrender value-life insurance 390,976 388,184 Other long-term assets 248,605 291,810 __________ __________ TOTAL ASSETS $40,416,005 $40,711,299
BOWL AMERICA INCORPORATED AND SUBSIDIARIES CONSOLIDATED BALANCE SHEETS
April 1, 2001 July 2, 2000 _______________ _____________ LIABILITIES AND STOCKHOLDERS' EQUITY Current Liabilities Accounts payable $ 930,573 $ 688,213 Accrued expenses and payroll ded 1,039,055 893,493 Income taxes payable 365,798 129,390 Deferred income taxes 23,000 23,000 Other current liabilities 2,549,288 430,808 __________ __________ Total Current Liabilities 4,907,714 2,164,904 Noncurrent Deferred Income Taxes 2,661,320 3,678,000 _________ _________ TOTAL LIABILITIES 7,569,034 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 - 3,478,976 and 3,406,070 shares 347,897 340,607 Class B issued and outstanding - 1,416,427 and 1,488,826 shares 141,643 148,883 Additional paid-in capital 3,765,997 3,959,169 Unrealized gain on available-for- sale securities, net of tax 3,515,317 5,246,421 Retained earnings 25,076,117 25,173,315 __________ __________ TOTAL STOCKHOLDERS' EQUITY $32,846,971 $34,868,395 TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY $40,416,005 $40,711,299 See notes to financial information.
BOWL AMERICA INCORPORATED CONSOLIDATED STATEMENTS OF CASH FLOWS FOR THE THIRTY-NINE WEEKS ENDED APRIL 1, 2001 AND MARCH 26, 2000
April 1, March 26, 2001 2000 Cash Flows From Operating Activities: Net earnings $3,493,991 $ 3,294,623 Adjustments to reconcile net earnings to net cash provided by operating activities Depreciation and amortization 1,469,833 1,654,286 Changes in assets and liabilities Decrease in inventories 89,454 76,958 Increase in prepaid and other (259,624) (376,182) Decrease in other long-term assets 40,413 281,803 Increase in accounts payable 242,360 95,914 Increase in accrued expenses and payroll deductions 145,562 37,549 Increase in income taxes payable 236,408 1,023,858 Increase in other current liabilities 2,118,490 2,020,085 _________ _________ Net cash provided by operating activities $7,576,887 $ 8,108,894 _________ _________ Cash flows from investing activities Expenditures for property,plant,equip (3,182,895) (426,130) Net decrease (increase) in short-term investments 352,548 (3,014,544) _________ _________ Net cash used in investing activities (2,830,347) (3,440,674) _________ _________ Cash flows from financing activities Payment of cash dividends (1,693,210) (1,661,640) Purchase of Common Stock (2,091,111) (2,750,671) _________ _________ Net cash used in financing activities (3,784,321) (4,412,311) _________ _________ Net Increase in Cash and Cash Equivalents 962,219 255,909 Cash and Equivalents, Beginning of Year 1,523,242 1,557,225 _________ _________ Cash and Equivalents, End of Period $2,485,461 $ 1,813,134 Supplemental Disclosures of Cash Flow Information Cash paid during the period for Income taxes $1,721,823 $ 811,914 See notes to financial information.
BOWL AMERICA INCORPORATED AND SUBSIDIARIES NOTES TO FINANCIAL STATEMENTS For the Thirty-nine Weeks Ended April 1, 2001 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 April 1, 2001 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 BOWL AMERICA INCORPORATED MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS April 1, 2001 Liquidity and Capital Resources Short-term investments consisting mainly of U.S. Treasury Bills and Notes, and cash totaled $11,007,000 at the end of the third quarter of fiscal 2001 or $1,907,000 higher than at the beginning of the quarter. The Company has purchased 244,036 shares of its previously outstanding common stock in the fiscal year for $2,091,000, including 110,812 shares in the third quarter for $1,024,000. During the nine-month period the Company expended $2,250,000 for the purchase of the land and building at Bowl America Glen Burnie. The Company is continuing to modernize existing locations and is actively seeking property for the development of additional bowling centers. Cash and cash flow are sufficient to finance all currently planned purchases and construction. The Company's position in telecommunications 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 three-month period ending April 1, 2001, the market value decreased by $300,000 to approximately $6,400,000. Current liabilities include $2million 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. 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 paid a 5% stock dividend on July 26, 2000. All applicable share and per share data in prior periods have been restated for the effect of the stock dividend. On March 27, 2001 the Company declared a cash dividend of $.115 per share on its Class A and Class B Common Stock, payable on May 16, 2001 to share- holders of record as of April 25, 2001, and a 5% stock dividend on its Class A and Class B Common Stock, payable on July 26, 2001 to shareholders of record on July 5, 2001. During the second quarter of fiscal 2001, the Company closed a center operating at break-even at the end of its lease. Results of Operations There was a $.35 per share profit for the thirteen-week period ending April 1, 2001, versus $.34 per share profit for the thirteen weeks ending March 26, 2000. For the current thirty-nine week period earnings per share were $.70 compared to $.61 for the comparable period a year ago. All revenue and expense comparisons were impacted by the operation of one fewer location in the current year quarter. Operating revenues increased 5% for both the current three-month and nine-month periods. In the prior year period the quarter showed a slight decrease but the nine-month period was up 3%. Food, beverage and merchandise sales were up 9% in both the three-month and nine-month periods and cost of sales was up due to the increase in sales. Operating expenses excluding depreciation and amortization increased 10% in the three-month period and 7% through the nine-month period. In the prior year both the three-month and nine-month period showed a slight decrease in expenses. Employee compensation and benefits were up 6% in both the three-month and nine-month periods. Overtime pay and a still tight labor market during our busy season were the main causes for the increases. Advertising costs increased 18% from the prior year quarter primarily due to the cost of preparing our "Rolling Bowling" trailers for the new season. Year-to-date advertising costs were down 8% from the prior year period. Higher gas prices were responsible for a 6% increase in utility costs for the quarter. There has been a 2% increase in utility costs for the nine-month period versus a decrease of less than 1% in last year's comparable period. The Company is defending a lawsuit commenced during the first quarter of the fiscal year by a former employee, scheduled to go to trial later this year, which is primarily responsible for the increased general and administrative expense. Depreciation and amortization expense decreased 11% in the year-to-date period versus a decrease of 3% in the prior year period. Several large capital assets have reached full depreciation. Rent expense for the nine- months ended April 1, 2001 was down 25% due to the closing of a leased center mentioned above and the purchase of a formerly leased location. Rent expense in the prior year's comparable period decreased 12% after the closing of a leased location. S.E.C. FORM 10-Q April 1, 2001 PART II - OTHER INFORMATION Item 6 - Exhibits and Reports on Form 8-K (a) Exhibits None (b) Reports on Form 8-K On March 27, 2001, the Company filed a Form 8-K (Item 5) reporting the declaration on that date of cash and stock dividends. 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 15, 2001 Leslie H. Goldberg Date Leslie H. Goldberg President May 15, 2001 Cheryl A. Dragoo Date Cheryl A. Dragoo Controller EX-20 2 press2.txt TEXT OF PRESS RELEASE Continued Earnings Improvement at Bowl America Bowl America Incorporated today reported its fifteenth consecutive quarterly year-to-year per share earnings increase for the period ended April 1, 2001. Fiscal third quarter earnings were $.35 compared to $.34 last year and nine month earnings rose from $.61 to $.70. The Company does not expect to be able to maintain the quarterly improvement during the fourth quarter. Last year that quarter included a fourteenth week. In addition, the calendar shift moved a week of winter league bowling out of this year's fourth quarter. No utility suppliers in the Company's trade areas have projected capacity shortages for the summer, although prices, particularly for natural gas, may be expected to rise. Gasoline price increases will mainly affect our customers, who may curtail their recreation spending. However, if people plan close to home vacations during the summer to avoid the higher gasoline prices, bowling can be expected to benefit. Bowl America operates 21 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-----