-----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, TuicR5CYj2DkpK9gw5X4ONuEttOTwFGv/DKeFtlJEseP295HyKZ0IrzO7XCC5kcX j5aKvPJpvfcnTwleCt/LJw== 0000014177-96-000013.txt : 19960916 0000014177-96-000013.hdr.sgml : 19960916 ACCESSION NUMBER: 0000014177-96-000013 CONFORMED SUBMISSION TYPE: 10-Q PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 19960802 FILED AS OF DATE: 19960913 SROS: NASD FILER: COMPANY DATA: COMPANY CONFORMED NAME: BRIDGFORD FOODS CORP CENTRAL INDEX KEY: 0000014177 STANDARD INDUSTRIAL CLASSIFICATION: SAUSAGE, OTHER PREPARED MEAT PRODUCTS [2013] IRS NUMBER: 951778176 STATE OF INCORPORATION: CA FISCAL YEAR END: 1101 FILING VALUES: FORM TYPE: 10-Q SEC ACT: 1934 Act SEC FILE NUMBER: 000-02396 FILM NUMBER: 96629808 BUSINESS ADDRESS: STREET 1: 1308 N PATT ST STREET 2: P O BOX 3773 CITY: ANAHEIM STATE: CA ZIP: 92801 BUSINESS PHONE: 7145265533 MAIL ADDRESS: STREET 1: 1308 NORTH PATT STREET STREET 2: P O BOX 3773 CITY: ANAHEIM STATE: CA ZIP: 92803 FORMER COMPANY: FORMER CONFORMED NAME: BRIDGFORD PACKING CO DATE OF NAME CHANGE: 19670307 10-Q 1 SECURITIES AND EXCHANGE COMMISSION FORM 10-Q (Mark one) [ X ] QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES AND EXCHANGE ACT OF 1934 For the quarterly period ended August 2, 1996 OR [ ] TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from Commission file number 0-2396 BRIDGFORD FOODS CORPORATION (Exact name of Registrant as specified in its charter) California 95-1778176 (State or other jurisdiction of (I.R.S. Employer incorporation or organization) identification number) 1308 N. Patt Street, Anaheim, Ca 92801 (Address of principal executive offices-Zip code) 714-526-5533 (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 [ ] As of September 13, 1996 the registrant had 9,396,933 shares of common stock outstanding. (end of cover page) BRIDGFORD FOODS CORPORATION FORM 10-Q QUARTERLY REPORT INDEX Part I. Financial Information Item 1. Financial Statements a. Consolidated Balance Sheets b. Consolidated Statements of Income b. Consolidated Statements of Shareholders' Equity c. Consolidated Statements of Cash Flows d. Notes to Consolidated Financial Statements Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations Part II. Other Information Items 1-5 have been omitted because they are not applicable with respect to the current reporting period. Item 6. Exhibits and Reports on Form 8-K SIGNATURES Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the the undersigned thereunto duly authorized. BRIDGFORD FOODS CORPORATION (Registrant) By:/s/ Robert E. Schulze September 13, 1996 R. E. Schulze, President Date and Principal Financial Officer Item 1. a. BRIDGFORD FOODS CORPORATION CONSOLIDATED BALANCE SHEETS
August 2 November 3 1996 1995 (unaudited) (audited) ASSETS Current assets: Cash and cash equivalents $4,926,459 $7,366,362 Accounts receivable, less allowance for doubtful accounts of $468,572 and $505,623 9,218,347 10,191,679 Inventories (Note 2) 15,436,842 13,849,947 Prepaid expenses and other 7,576,078 6,850,434 Total current assets 37,157,726 38,258,422 Property, plant and equipment, less accumulated depreciation of $23,156,697 and $21,065,322 17,844,073 14,364,995 $55,001,799 $52,623,417 LIABILITIES AND SHAREHOLDERS' EQUITY Current liabilities: Accounts payable $3,588,516 $4,662,825 Accrued payroll and other expenses 12,317,585 11,046,103 Income taxes payable 136,491 54,917 Total current liabilities 16,042,592 15,763,845 Shareholders'equity: Preferred stock, without par value Authorized - 1,000,000 shares Issued and outstanding - none Common stock, $1.00 par value Authorized - 20,000,000 shares Issued and outstanding - 9,396,933 shares 9,453,816 9,453,816 Capital in excess of par value 3,024,881 3,024,881 Retained earnings 26,480,510 24,380,875 38,959,207 36,859,572 $55,001,799 $52,623,417
Item 1. b. BRIDGFORD FOODS CORPORATION CONSOLIDATED STATEMENTS OF INCOME (Unaudited)
13 weeks ended 39 weeks ended August 2 July 28 August 2 July 28 1996 1995 1996 1995 Net sales $28,397,951 $26,000,551 $87,535,201 $81,140,885 Cost of products sold, excluding depreciation 17,681,987 16,834,759 56,537,918 52,353,868 Selling, general and administrative expense 7,677,801 6,166,009 22,790,825 19,852,908 Depreciation 734,732 521,625 2,091,375 1,564,875 26,094,520 23,522,393 81,420,118 73,771,651 Income before taxes 2,303,431 2,478,158 6,115,083 7,369,234 Income tax provision 876,000 941,000 2,324,000 2,800,000 Net income $1,427,431 $1,537,158 $3,791,083 $4,569,234 Net income per share (Note 3) $0.15 $0.16 $0.40 $0.49 Cash dividends paid per share (Note 3) $0.06 $0.05 $0.18 $0.18
CONSOLIDATED STATEMENTS OF SHAREHOLDER'S EQUITY (Unaudited)
Capital Common Stock in excess Retained Shares Amount of par earnings October 28, 1994 9,396,933 $9,453,816 $3,024,881 $19,951,315 Net income 4,569,234 Cash dividends ($.18 per share) (1,691,448) July 28, 1995 9,396,933 $9,453,816 $3,024,881 $22,829,101 November 3, 1995 9,396,933 $9,453,816 $3,024,881 $24,380,875 Net income 3,791,083 Cash dividends ($.18 per share) (1,691,448) August 2, 1996 9,396,933 $9,453,816 $3,024,881 $26,480,510
Item 1.c. BRIDGFORD FOODS CORPORATION CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited)
39 weeks ended August 2 July 28 1996 1995 Cash flows from operating activities: Net income $3,791,083 $4,569,234 Income charges not affecting cash: Depreciation 2,091,375 1,564,875 Provision for losses on accounts receivable 83,363 49,200 Effect on cash of changes in assets and liabilities: Accounts receivable 889,969 605,831 Inventories (1,586,895) (1,116,490) Prepaid expenses and other (725,644) (1,442,326) Accounts payable and accrued expenses 197,173 (296,891) Income taxes payable 81,574 (77,604) Net cash provided by operating activities 4,821,998 3,855,829 Cash used in investing activities: Additions to property, plant and equipment (5,570,453) (5,014,898) Cash used for financing activities: Cash dividends paid (1,691,448) (1,691,448) Net decrease in cash and cash equivalents (2,439,903) (2,850,517) Cash and cash equivalents at beginning of period 7,366,362 12,648,368 Cash and cash equivalents at end of period $4,926,459 $9,797,851 Cash paid for income taxes $3,096,000 $4,094,000
[CAPTION] Item 1.d. BRIDGFORD FOODS CORPORATION NOTES TO CONSOLIDATED FINANCIAL STATEMENTS Note 1 - General Comments The consolidated financial statements of the Company for the thirty-nine weeks ended August 2, 1996 have been prepared in conformity with the accounting principles described in the 1995 Annual Report to Shareholders and include all adjustments considered necessary by management for a fair statement of the interim period. Such adjustments consist only of normal recurring items. This report should be read in conjunction with the Company's 1995 Annual Report to Shareholders. The results of operations for the periods presented are not necessarily indicative of the results to be expected for the 52 weeks of the fiscal year. Note 2 - Inventories
Inventories are comprised as follows at the respective periods: August 2 November 3 1996 1995 Meat, ingredients and supplies $6,134,386 $3,552,290 Work in progress 1,441,115 1,861,679 Finished goods 7,861,341 8,435,978 $15,436,842 $13,849,947
Note 3 - Common Stock and Per Share Data The weighted average shares used for computing earnings per share in the accompanying statements of income were 9,396,933 for all periods presented. SPECIAL NOTE REGARDING FORWARD-LOOKING STATEMENTS Certain statements in this Form 10-Q under Item 2., Management's Discussion and Analysis of Financial Condition and Results of Operations" and elsewhere in this Form 10-Q constitute "forward-looking statements" within the meaning of the Securities Act of 1933 and the Securities Exchange Act of 1934. Such forward looking statements involve known and unknown risks, uncertainties, and other factors which may cause the actual results, performance, or achievements of Bridgford Foods Corporation to be materially different from any future results, performance or achievements expressed or implied by such forward looking statements. Such factors include, among others, the following; general economic and business conditions; the impact of competitive products and pricing; success of operating initiatives; development and operating costs; advertising and promotional efforts; adverse publicity; acceptance of new product offerings; consumer trial and frequency; changes in business strategy or development plans; availability, terms and deployment of capital; availability of qualified personnel; commodity, labor, and employee benefit costs; changes in, or failure to comply with, government regulations; weather conditions; construction schedules; and other factors referenced in this Form 10-Q. Management's Discussion and Analysis of Financial Condition and Results of Operations The Company's operating results are heavily dependent upon the prices paid for raw materials. The marketing of the company's value-added products does not lend itself to instantaneous changes in selling prices. Changes in selling prices are relatively infrequent and do not compare with the volatility of commodity markets. Higher flour and pork prices were experienced during the first thirty-nine weeks of fiscal 1996 compared to the prior fiscal year. Management anticipates that these costs will stabilize as the year progresses. Costs of flour have declined about 10% since the close of the third quarter while pork prices have remained at historically high levels. Sales in the third thirteen week period of 1996 increased by $2,397,000 (9.2%) to $28,398,000 compared to the same period last year. Sales for the third thirteen week period decreased $866,000 (3.0%) compared to the previous period ended May 3,1996. The sales increase compared to the third quarter of 1995 relates to higher unit sales volume, changes in product mix and increased selling prices. The sales decrease from the prior fiscal quarter relates to normal seasonal activity and changes in product mix. Sales for the first thirty-nine weeks of 1996 increased $6,394,000 (7.9%) to $87,535,000 compared to the same period last year. The increase in sales primarily relates to higher sales volume and to increased selling prices with selling prices accounting for about 1% of the sales increase. Cost of products sold increased by $847,000 (5.0%) in the third quarter of the 1996 fiscal year to $17,682,000 compared to the same period in 1995 due primarily to higher unit sales volume and changes in product mix. The impact of higher commodity costs was mitigated by changes in product mix during the third thirteen week period of fiscal 1996. Compared to the prior quarter, cost of products sold decreased $1,192,000 (6.3%) as a result of lower unit sales volume and changes in product mix. Selling, general and administrative expenses increased by $1,512,000 (24.5%) to $7,677,000 in the third quarter of 1996 compared to the same period last year. The increase primarily relates to higher sales volume and higher salaries, advertising and delivery costs compared to the prior year. Compared to the prior quarter, selling, general and administrative expenses increased by $330,000 (4.5%). This increase relates to higher sales commissions and advertising costs incurred during the third quarter of the fiscal year compared to the prior fiscal quarter. Depreciation expense increased by $213,000 (40.9%) in the third thirteen week period of the 1996 fiscal year compared to the same period in 1995. The increase in depreciation is related primarily to the substantial completion of a food processing facility in North Carolina and extensive additions to existing facilities located in Texas during the second thirteen week period of fiscal year 1996. The effective income tax rate was 38.0% in the third quarter of fiscal 1996, consistent with the prior fiscal year and the prior quarter. Cash and cash equivalents decreased $2,440,000 (33.1%) to $4,926,000 during the first thirty-nine weeks of the 1996 fiscal year. The principal items favorably affecting the $4,822,000 net cash provided by operating activities were net income of $3,791,000 and depreciation of $2,091,000. Offsetting these increases were net cash outflows for inventory and prepaid expenses of $1,587,000 and $726,000, respectively. Cash used in investing activities for the first thirty-nine weeks of 1996 consisted of $5,570,000 in additions to property, plant and equipment. This amount reflects the Company's continued investment in manufacturing facilities and transportation equipment. These expenditures include construction costs for a food processing facility in North Carolina and extensive additions to existing facilities located in Texas. These projects were substantially complete in the second quarter of 1996 and these investments are expected to yield higher production capacities, improved plant utilization and cost savings in future years. Capital expenditures are expected to be reduced in subsequent quarters. Cash used for financing activities consists of cash dividends in the amount of $1,691,000 in the first thirty-nine weeks of 1996, consistent with the prior thirty-nine week period. The Company paid regular quarterly cash dividends of six-cents per share in the first three quarters of 1996 compared to a three-cent per share extra cash dividend paid together with three regular five-cent per share cash dividends in the first thirty-nine weeks of 1995. The Company remained free of interest bearing debt during the first thirty-nine weeks of 1996. The Company's revolving line of credit with Bank of America expires April 30, 1997 and provides for borrowings up to $2,000,000. The Company has not borrowed under the line for more than nine consecutive years. The impact of inflation on the Company's financial position and results of operations has not been significant. Management is of the opinion that the Company's strong financial position and its capital resources are sufficient to provide for its operating needs and capital expenditures. Item 6. Exhibits and Reports on Form 8-K (a) Exhibits: 27 - Financial Data Schedule for the 39 weeks ended August 2,1996 submitted to the Securities and Exchange Commission in electronic format (for SEC information only) (b) - Reports on Form 8-K No Report on Form 8-K has been filed during the quarter for which this report is filed. EX-27 2
5 THIS SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM THE FINANCIAL STATEMENTS OF BRIDGFORD FOODS CORPORATION FOR THE THIRTY-NINE WEEKS ENDED AUGUST 2, 1996, AS SET FORTH IN THIS FORM 10-Q FOR SUCH PERIOD, AND IS QUALIFIED IN ITS ENTIRETY BY REFERENCE TO SUCH FINANCIAL STATMENTS. OTHER NOV-01-1996 AUG-02-1996 4,926,459 0 9,686,919 468,572 15,436,842 37,157,726 41,000,770 23,156,697 55,001,799 16,042,592 0 0 0 9,453,816 29,505,391 55,001,799 87,535,201 87,535,201 56,537,918 56,537,918 24,882,200 83,363 104,808 6,115,083 2,324,000 3,791,083 0 0 0 3,791,083 .40 .40
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