-----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, E8q6VbwFT5tthBnDNSlvdNJDlRrHSgVxhl+6z2ejTYOVTTEzTcwOj6bzTfXhGZyq wbxPZRrdCUll+4noQ+6+SQ== 0000013573-03-000002.txt : 20030211 0000013573-03-000002.hdr.sgml : 20030211 20030211163030 ACCESSION NUMBER: 0000013573-03-000002 CONFORMED SUBMISSION TYPE: 10-Q PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 20021229 FILED AS OF DATE: 20030211 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: 1934 Act SEC FILE NUMBER: 001-07829 FILM NUMBER: 03550516 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 r10qdc02.txt FORM 10-Q FOR PERIOD ENDED DECEMBER 29, 2002 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 29, 2002 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 26, 2003 Class A Common Stock, 3,666,022 $.10 par value Class B Common Stock 1,483,620 $.10 par value ITEM 1. FINANCIAL STATEMENTS BOWL AMERICA INCORPORATED AND SUBSIDIARIES CONDENSED CONSOLIDATED STATEMENTS OF EARNINGS (Unaudited)
Thirteen Weeks Ended Twenty-six Weeks Ended December 29, December 30, December 29, December 30, 2002 2001 2002 2001 _______________________ __________________________ Operating Revenues Bowling and other $5,262,668 $5,547,213 $ 9,541,652 $10,024,029 Food, beverage and merchandise sales 2,264,213 2,319,919 4,111,231 4,277,144 _________ _________ __________ __________ 7,526,881 7,867,132 13,652,883 14,301,173 Operating Expenses Compensation and benefits 3,227,739 3,213,191 6,376,064 6,346,564 Cost of bowling and other 1,453,939 1,454,877 2,949,418 2,942,319 Cost of food, beverage and merchandise sales 761,304 791,638 1,374,654 1,508,738 Depreciation and amortization 403,570 436,758 844,722 889,192 General and administrative 201,241 276,581 372,829 448,611 _________ _________ __________ __________ 6,047,793 6,173,045 11,917,687 12,135,424 Operating Income 1,479,088 1,694,087 1,735,196 2,165,749 Interest and dividend income 122,842 138,124 238,278 271,100 _________ _________ __________ __________ Earnings before provision for income taxes 1,601,930 1,832,211 1,973,474 2,436,849 Provision for income taxes 578,273 657,763 712,400 874,828 _________ _________ __________ __________ Net Earnings $1,023,657 $1,174,448 $ 1,261,074 $ 1,562,021 Earnings per share-basic & diluted $.20 $.23 $.25 $.31 Weighted average shares outstanding 5,149,834 5,151,237 5,149,915 5,118,729 Dividends paid $617,999 $595,176 $1,235,999 $1,187,838 Per share, Class A $.12 $.115 $.24 $.23 Per share, Class B $.12 $.115 $.24 $.23 CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE EARNINGS Net Earnings $1,023,657 $1,174,448 $ 1,261,074 $1,562,021 Other comprehensive earnings-net of tax Unrealized gain (loss) on available for sale securities 662,608 (407,419) (68,642) (207,706) _________ _________ _________ _________ Comprehensive earnings $1,686,265 $ 767,029 $ 1,192,432 $1,354,315
The operating results for the thirteen (13) and twenty-six (26) week periods ended December 29, 2002 are not necessarily indicative of results to be expected for the year. See notes to condensed consolidated financial information. BOWL AMERICA INCORPORATED AND SUBSIDIARIES CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited)
December 29, 2002 June 30, 2002 ________________ _____________ ASSETS Current Assets Cash and cash equivalents $ 2,156,588 $ 1,633,817 Short-term investments 9,145,935 8,183,932 Inventories 662,607 541,027 Prepaid expenses and other 299,879 479,289 Income taxes refundable 177,143 699,768 __________ __________ Total Current Assets 12,442,152 11,537,833 Property, Plant and Equipment less accumulated depreciation of $27,594,411 and $26,996,091 20,647,202 20,505,586 Other Assets Marketable equity securities 3,881,343 3,990,248 Cash surrender value-life insurance 434,040 431,249 Other long-term assets 67,267 97,662 __________ __________ TOTAL ASSETS $37,472,004 $36,562,578
BOWL AMERICA INCORPORATED AND SUBSIDIARIES CONDENSED CONSOLIDATED BALANCE SHEETS
December 29, 2002 June 30, 2002 _________________ _____________ LIABILITIES AND STOCKHOLDERS' EQUITY Current Liabilities Accounts payable $ 546,802 $ 701,671 Accrued expenses and payroll ded 656,271 749,245 Other current liabilities 1,612,183 369,027 __________ __________ Total Current Liabilities 2,815,256 1,819,943 Long-term Deferred Compensation 132,496 132,496 Noncurrent Deferred Income Taxes 1,887,844 1,928,000 ---------- ---------- TOTAL LIABILITIES 4,835,596 3,880,439 __________ __________ 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 - 3,666,022 and 3,666,376 shares 366,602 366,638 Class B issued and outstanding - 1,483,620 and 1,483,620 148,362 148,362 Additional paid-in capital 7,605,160 7,603,646 Unrealized gain on securities available-for-sale, 1,974,420 2,043,062 Retained earnings 22,541,864 22,520,431 __________ __________ TOTAL STOCKHOLDERS' EQUITY $32,636,408 $32,682,139 TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY $37,472,004 $36,562,578 See notes to condensed consolidated financial information.
BOWL AMERICA INCORPORATED CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) FOR THE TWENTY-SIX WEEKS ENDED DECEMBER 29, 2002 AND DECEMBER 30, 2001
December 29, December 30, 2002 2001 Cash Flows From Operating Activities: Net earnings $1,261,074 $1,562,021 Adjustments to reconcile net earnings to net cash provided by operating activities Depreciation and amortization 844,722 889,192 Changes in assets and liabilities (Increase) decrease in inventories (121,580) 43,046 Decrease in prepaid expenses & other 178,759 298,140 Decrease in income taxes refundable 522,625 278,144 Decrease in other long-term assets 30,395 81,448 Decrease in accounts payable (154,869) (410,872) Decrease in accrued expenses (92,974) (138,252) Increase in other current liabilities 1,243,156 1,202,645 _________ _________ Net cash provided by operating activities $3,711,308 $3,805,512 _________ _________ Cash flows from investing activities Expenditures for property,plant,equip (986,338) (981,838) Net (purchases) sales and maturities of short-term investments (962,003) 223,879 _________ _________ Net cash used in investing activities (1,948,341) (757,959) _________ _________ Cash flows from financing activities Payment of cash dividends (1,235,999) (1,187,838) Purchase of Class A Common Stock (4,197) (60,813) _________ _________ Net cash used in financing activities (1,240,196) (1,248,651) _________ _________ Net Increase in Cash and Equivalents 522,771 1,798,902 Cash and Equivalents, Beginning of Period 1,633,817 1,338,420 _________ _________ Cash and Equivalents, End of Period $2,156,588 $3,137,322 Supplemental Disclosures of Cash Flow Information Cash paid during the period for Income taxes $ 189,775 $ 596,710 See notes to condensed consolidated financial information.
BOWL AMERICA INCORPORATED AND SUBSIDIARIES NOTES TO CONDENSED CONSOLIDATED FINANCIAL INFORMATION For the Twenty-six Weeks Ended December 29, 2002 1. Basis for Presentation The accompanying unaudited condensed 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 condensed consolidated balance sheet as of June 30, 2002 has been derived from the Company's June 30, 2002 audited financial statements. Certain information and note disclosures normally included in the annual financial statements, prepared in accordance with accounting principles generally accepted in the United States of America, 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 condensed 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 condensed 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 June 30, 2002. 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 29, 2002 were: 16,835 shares of AT&T Wireless 2,209 shares of Agere 3,946 shares of Alltel 669 shares of Avaya 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 3. Commitments and Contingencies In November 2002, the Company signed an agreement with Brunswick Corporation for approximately $189,000 for the purchase of bowling equipment for one center. The Company is expected to receive and install the equipment in the third quarter of this fiscal year. In August 2002, the Company signed an agreement with Brunswick Corporation for the purchase of $597,000 in equipment. These assets were received and installed in the quarter ended December 29, 2002. BOWL AMERICA INCORPORATED Item 2 - Management's Discussion and Analysis of Financial Condition and Results of Operations MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS December 29, 2002 Liquidity and Capital Resources Short-term investments, consisting mainly of U.S. Treasury Bills and Notes, and cash totaled $11,300,000 at the end of the second quarter of fiscal 2003 or $1,572,000 higher than at the beginning of the quarter and $1,485,000 higher than at the beginning of the fiscal year. The increased funds result from operations and reflect the seasonal nature of the business. In the six-month period ended December 29, 2002, the Company expended approximately $1,000,000 for the purchase of bowling and restaurant equipment and some amusement games as existing locations were upgraded. An additional order for equipment for approximately $189,000 was placed. The installation of the equipment will be completed in the third quarter of thes fiscal year. The Company is actively seeking property for the development of additional bowling centers. Cash and cash flow are sufficient to finance all contemplated purchases and construction. The Company's holdings of marketable equity securities, primarily consisting of telecommunications stocks, are another potential source of expansion capital. These marketable securities are carried at their fair value on the last day of the quarter. For the three-month period ended December 29, 2002, the market value increased by $1,081,000 to approximately $3,881,000. Current liabilities include approximately $1,400,000 in league deposits of prize fund monies that 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. On December 3, 2002, the Board of Directors declared a cash dividend of $.12 per share on its Class A and Class B Common Stock, payable February 12, 2003, to holders of record as of January 10, 2003. Results of Operations In fiscal year 2002, two centers were closed at the expiration of their leases. One center, operating at break-even, was closed at the end of the first quarter of fiscal 2002, and a profitable center was closed in May 2002 after the Company was unable to negotiate a new lease. The Company also closed a leased location in the second quarter of fiscal 2001. The changes in the number of centers in operation affected all income, expense and comparisons for the periods presented in this report. Net earnings were $.20 per share for the thirteen-week period ended December 29, 2002, versus net earnings of $.23 per share for the thirteen- week period ended December 30, 2001. For the current twenty-six week period net earnings per share were $.25 compared to $.31 for the comparable period a year ago. Operating revenues decreased 4% for the three-month period ended December 29, 2002 versus an increase of 4% in the comparable period a year ago. For the current six-month period operating revenues were down 5% versus a 2% increase in the prior year six-month period. While games bowled at comparable locations in the current fiscal year have actually increased, promotional pricing during normally slow times resulted in a lower average game rate. Food, beverage and merchandise sales were down 2% in the current year quarter and down 4% in the six-month period. Cost of sales declined due to the lower sales. Operating expenses excluding depreciation and amortization decreased 2% in the current three and six month periods versus increases of 5% and 4% for the prior year three and six month periods. Employee compensation and benefits were up slightly in the current quarter and six-month period but were up 3% and 2% respectively last year. Maintenance and repair costs were down 9% in the six-month period ended December 29, 2002 versus an increase of 10% in the comparable period last year. While this year's costs include snow removal, last year it was building repairs that were primarily responsible for the increase. Advertising costs during the current twenty-six week period decreased 6% compared to a 22% increase in the prior year comparable period when advertising in support of glow-in-the-dark bowling was run. Utility costs for the current quarter were down 4% and down 8% for the six-month period but were flat in both last year's quarter and six-month periods. Bowling supplies and services costs were up 2% for the six-month period compared to an 8% decrease in the prior year period. Depreciation and amortization expense decreased 5% in the year-to-date period and 9% in the comparable prior year period. Fewer centers are in operation and several large capital assets have reached full depreciation. Rent expense was down 16% in the current year six-month period and 6% in the prior year comparable period due to the closing of leased centers mentioned above. Insurance expense increased approximately 42% through the six-month period ended December 29, 2002 and 10% in the six-month period a year ago. The bulk of the extraordinary premium increase following 9/11/01 has now been accounted for and renewal premiums are expected to increase less than 20%. CRITICAL ACCOUNTING POLICIES Critical accounting policies have the potential to have an impact on the Company's financial statements, either because of the significance of the financial statement item to which they relate, or because they require judgment and estimation due to the uncertainty involved in measuring at a specific point in time, events that are continuous in nature. Due to the nature of its business, the Company has no accounting policies that it considers critical to the understanding of the Company's financial reporting. ITEM 3. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK Not applicable ITEM 4. CONTROLS AND PROCEDURES The Company's Chief Executive Officer and Chief Financial Officer have concluded that the Company's disclosure controls and procedures are effective based on their evaluation of such controls and procedures as of a date within 90 days prior to the filing of this report. There were no significant changes in internal controls or in other factors that significantly affect internal controls subsequent to the date of their most recent evaluation. BOWL AMERICA INCORPORATED AND SUBSIDIARIES S.E.C. FORM 10-Q December 29, 2002 PART II - OTHER INFORMATION Item 4 - Submission of Matters to a Vote of Security Holders At the annual meeting on December 3, 2002 the Class A shareholders approved the appointment of Director Warren T. Braham for a one year period to expire at the 2003 Annual Meeting. The votes were cast as follows: For 3,296,113 Withheld 15,907 At the annual meeting on December 3, 2002, the Class A shareholders approved the appointment of Director Allan L. Sher for a one year period to expire at the 2003 Annual Meeting. The votes were cast as follows: For 3,296,245 Withheld 15,775 At the annual meeting on December 3, 2002, the Class B shareholders approved the appointment of all Class B Directors as listed in the proxy statement for the December 3, 2002 meeting, for a one year period to expire at the 2003 Annual Meeting. The votes were cast as follows: For 14,698,840 Withheld 0 At the annual meeting on December 3, 2002, the Class A and Class B shareholders voted against a Shareholder Proposal presented as listed in the proxy statement for the December 3, 2002 meeting. The votes were cast as follows: For 199,507 Against 17,255,308 Abstaining 10,325 Item 6 - Exhibits and Reports on Form 8-K (a) Exhibits 10(A) Employment Contract 10(B) Employment Contract 99.1 Written statement of Chief Executive Officer 99.2 Written statement of Chief Financial Officer (b) Reports on Form 8-K None 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 12, 2003 Leslie H. Goldberg Date President February 12, 2003 Cheryl A. Dragoo Date Controller CERTIFICATIONS I, Leslie H. Goldberg, certify that: 1. I have reviewed this quarterly report on Form 10-Q of Bowl America Incorporated; 2. Based on my knowledge, this quarterly report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this quarterly report; 3. Based on my knowledge, the financial statements, and other financial information included in this quarterly report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this quarterly report; 4. The registrant's other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchanges Act Rules 13a-14 and 15d-14) for the registrant and have: a) designed such disclosure controls and procedures to ensure that material information relating to the registrant, including its consolidated subsid- iaries is made known to us by others within those entities, particularly during the period in which this quarterly report is being prepared; b) evaluated the effectivness of the registrant's disclosure controls and procedures as of a date with 90 days prior to the filing date of this quarterly report (the "Evaluation Date"); and c) presented in this quarterly report our conclusions about the effectiveness of the disclosure controls and procedures based on our evaluation as of the Evaluation Date; 5. The registrant's other certifying officer and I have disclosed, based on our most recent evaluation, to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions): a) all significant deficiencies in the design or operation of internal controls which could adversely affect the registrant's ability to record, process, summarize and report financial data and have identified for the registrant's auditors any material weaknesses in internal controls; and b) any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal controls; and 6. The registrant's other certifyig officer and I have indicated in this quarterly report whether there were significant changes in the internal controls or in other factors that could significantly affect internal controls subsequent to the date of our most recent evaluation, including any corrective actions with regard to significant deficiencies and material weaknesses. Date: February 12, 2003 Leslie H. Goldberg Chief Executive Officer CERTIFICATIONS I, Cheryl A. Dragoo, certify that: 1. I have reviewed this quarterly report on Form 10-Q of Bowl America Incorporated; 2. Based on my knowledge, this quarterly report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this quarterly report; 3. Based on my knowledge, the financial statements, and other financial information included in this quarterly report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this quarterly report; 4. The registrant's other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchanges Act Rules 13a-14 and 15d-14) for the registrant and have: a) designed such disclosure controls and procedures to ensure that material information relating to the registrant, including its consolidated subsid- iaries is made known to us by others within those entities, particularly during the period in which this quarterly report is being prepared; b) evaluated the effectivness of the registrant's disclosure controls and procedures as of a date with 90 days prior to the filing date of this quarterly report (the "Evaluation Date"); and c) presented in this quarterly report our conclusions about the effectiveness of the disclosure controls and procedures based on our evaluation as of the Evaluation Date; 5. The registrant's other certifying officer and I have disclosed, based on our most recent evaluation, to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions): a) all significant deficiencies in the design or operation of internal controls which could adversely affect the registrant's ability to record, process, summarize and report financial data and have identified for the registrant's auditors any material weaknesses in internal controls; and b) any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal controls; and 6. The registrant's other certifyig officer and I have indicated in this quarterly report whether there were significant changes in the internal controls or in other factors that could significantly affect internal controls subsequent to the date of our most recent evaluation, including any corrective actions with regard to significant deficiencies and material weaknesses. Date: February 12, 2003 Cheryl A. Dragoo Chief Financial Officer EXHIBIT 10(A) EMPLOYMENT CONTRACT THIS AGREEMENT is dated as of the 31st day of December, 2002, by and between BOWL AMERICA INCORPORATED, hereinafter called "Corporation", and Irvin Clark, hereinafter called "Clark", WITNESSETH: WHEREAS the parties desire to enter into an Employment Contract to go into effect on January 1, 2003; NOW, THEREFORE, in consideration of the premises and the mutual agreements hereinafter contained, the parties hereby agree as follows: 1. Corporation hereby employs Clark, and Clark hereby agrees to work for Corporation for the year commencing January 1, 2003, and expiring on December 31, 2003. 2. Clark shall serve as General Manager of the Corporation, performing the functions and duties normally performed by a General Manager. 3. Clark shall devote his full time and attention to the affairs of the Corporation. 4. Clark shall be entitled by way of remuneration for his services the sum of $150,000 per year to be paid in bi-weekly installments. 5. This Agreement is purely personal with Irvin Clark and in the event of his death or total disability during the contract period, this agreement shall terminate and the obligations of the Corporation to make any payments shall cease. BOWL AMERICA INCORPORATED By: Leslie H. Goldberg, President ATTEST: Michael T. Dick Assistant Secretary Irvin Clark EXHIBIT 10(B) EMPLOYMENT CONTRACT THIS AGREEMENT is dated as of the 31st day of December, 2002, by and between BOWL AMERICA INCORPORATED, hereinafter called "Corporation", and Cheryl A. Dragoo, hereinafter called "Dragoo", WITNESSETH: WHEREAS the parties desire to enter into an Employment Contract to go into effect on January 1, 2003; NOW, THEREFORE, in consideration of the premises and the mutual agreements hereinafter contained, the parties hereby agree as follows: 1. Corporation hereby employs Dragoo, and Dragoo hereby agrees to work for Corporation for a term of two years commencing January 1, 2003, and expiring on December 31, 2004; 2. Dragoo shall serve as Comptroller, Chief Financial Officer and Assistant Treasurer of the Corporation, performing the functions and duties normally performed by a Comptroller, Chief Financial Officer and Assistant Treasurer. 3. Dragoo shall devote her full time and attention to the affairs of the Corporation. 4. Dragoo shall be entitled by way of remuneration for her services the sum of $110,000 per year during 2003 and $120,000 per year during 2004, to be paid in bi-weekly installments. 5. This Agreement is purely personal with Cheryl A. Dragoo and in the event of her death or total disability during the contract period, this agreement shall terminate and the obligations of the Corporation to make any payments shall cease. BOWL AMERICA INCORPORATED By: Leslie H. Goldberg, President ATTEST: Michael T. Dick Assistant Secretary Cheryl A. Dragoo EXHIBIT 99.1 Written Statement of the Chief Executive Officer Pursuant to 18 U.S.C. 1350 Solely for the purposes of complying with 18 U.S.C. 1350, I, the undersigned President of Bowl America Incorporated (the "Company"), hereby certify, based on my knowledge, that the Quarterly Report on Form 10-Q of the Company for the quarter ended December 29, 2002 (the "Report") fully complies with the requirements of Section 13(a) of the Securities Act of 1934 and that information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company. Leslie H. Goldberg February 12, 2003 EXHIBIT 99.2 Written Statement of the Chief Financial Officer Pursuant to 18 U.S.C. 1350 Solely for the purposes of complying with 18 U.S.C. 1350, I, the undersigned Assistant Treasurer and Controller of Bowl America Incorporated (the "Company"), hereby certify, based on my knowledge, that the Quarterly Report on Form 10-Q of the Company for the quarter ended December 29, 2002, (the "Report") fully complies with the requirements of Section 13(a) of the Securities Act of 1934 and that information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company. Cheryl A. Dragoo February 12, 2003 EX-20 3 pr1202.txt TEXT OF PRESS RELEASE DATED FEBRUARY 12, 2003 For Immediate Release February 12, 2003 Earnings Decline at Bowl America Bowl America Incorporated reported that second quarter per share earnings declined from $.23 a year ago to $.20. Six months earnings were down from $.31 to $.25 per share. Operating one less location in the current year contributed to the decline. Income from the Company's reserves also declined reflecting lower interest rates, although dividends received from security holdings were slightly higher. Insurance costs for the quarter were up substantially from the previous year's quarter, however the rate of increase is expected to slow with renewals due in the third quarter. Games bowled at comparable centers increased marginally but per game revenues were down as a result of promotional pricing during normally slow times. Traffic created by these promotions has continued strong into January. The Company today paid a $.12 quarterly dividend and expects this to be the thirty-first consecutive year of increased dividends. Bowl America operates nineteen bowling centers in Maryland, Virginia and Florida and its Class A Common Stock trades on the American Stock Exchange with the symbol BWLA. The Company's Form 10-Q is available at www.sec.gov on the Edgar System. -----END PRIVACY-ENHANCED MESSAGE-----