-----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, MZMTCURO9mXY2TwVp01NKq8rEyhn1di2At8f9IaKbP1RqMWywXVVc5IQqSDZgJTE ENQQh9wkj12OvW9eng1yMA== 0000020041-97-000014.txt : 19971216 0000020041-97-000014.hdr.sgml : 19971216 ACCESSION NUMBER: 0000020041-97-000014 CONFORMED SUBMISSION TYPE: 10-Q PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 19971031 FILED AS OF DATE: 19971215 SROS: AMEX FILER: COMPANY DATA: COMPANY CONFORMED NAME: CHOCK FULL O NUTS CORP CENTRAL INDEX KEY: 0000020041 STANDARD INDUSTRIAL CLASSIFICATION: MISCELLANEOUS FOOD PREPARATIONS & KINDRED PRODUCTS [2090] IRS NUMBER: 130697025 STATE OF INCORPORATION: NY FISCAL YEAR END: 0731 FILING VALUES: FORM TYPE: 10-Q SEC ACT: SEC FILE NUMBER: 001-04183 FILM NUMBER: 97738390 BUSINESS ADDRESS: STREET 1: 370 LEXINGTON AVE CITY: NEW YORK STATE: NY ZIP: 10017 BUSINESS PHONE: 2125320300 MAIL ADDRESS: STREET 1: 370 LEXINGTON AVENUE CITY: NEW YORK STATE: NY ZIP: 10017 10-Q 1 SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q QUARTERLY REPORT UNDER SECTION 13 OR 15 (d) OF THE SECURITIES EXCHANGE ACT OF 1934 For Quarter Ended October 31, 1997 Commission File Number 1-4183 CHOCK FULL O' NUTS CORPORATION (Exact Name of Registrant As Specified In Its Charter) New York 13-0697025 (State or Other Jurisdiction of (I.R.S. Employer Incorporation of Organization) Identification No.) 370 Lexington Avenue, New York, N.Y. 10017 (Address of Principal Executive Offices) (Zip Code) Registrant's Telephone Number,including Area Code (212)532-0300 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 No. of Shares of Common Stock ($.25 par value) outstanding as of December 10, 1997 - 10,741,050 CHOCK FULL O' NUTS CORPORATION AND SUBSIDIARIES INDEX Page No. PART I. FINANCIAL INFORMATION Item 1. Financial Statements Unaudited Condensed Consolidated Balance Sheets - October 31, 1997 and July 31, 1997 1 & 2 of 12 Unaudited Condensed Consolidated Statements of Income- Three Months Ended October 31, 1997 and 1996 3 of 12 Unaudited Condensed Consolidated Statements of Cash Flows - Three Months Ended October 31, 1997 and 1996 4 of 12 Unaudited Condensed Consolidated Statement of Stockholders' Equity - October 31, 1997 5 & 6 of 12 Notes to Unaudited Condensed Consolidated Financial Statements - October 31, 1997 7 & 8 of 12 Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations 9,10 & 11 of 12 PART II. OTHER INFORMATION Item 1. Legal Proceedings 11 of 12 Item 5. Other Information 11 of 12 Item 6. Exhibits and Reports on Form 8-K 11 of 12 Signatures 12 of 12 PART I. FINANCIAL INFORMATION CHOCK FULL O' NUTS CORPORATION AND SUBSIDIARIES CONDENSED CONSOLIDATED BALANCE SHEETS October 31, July 31, 1997 1997 (Unaudited) (Note) ASSETS Current assets: Cash and cash equivalents $ 6,488,857 $4,585,633 Receivables, principally trade, less allowances for doubtful accounts and discounts of $1,420,000 and $1,422,000 43,614,656 37,554,412 Inventories 69,952,974 82,951,688 Prepaid expenses and other 8,082,991 2,457,221 Total current assets 128,139,478 127,548,954 Property, plant and equipment - at cost $ 99,840,505 $ 98,609,466 Less allowances for depreciation and amortization (51,601,849) 48,238,656 (49,933,489) 48,675,977 Real estate held for development or sale, at cost 2,217,223 7,635,427 Other assets and deferred charges 24,341,689 23,799,057 Excess of cost over net assets acquired 9,593,664 9,670,551 $212,530,710 $217,329,966 Note: The balance sheet at July 31, 1997 has been derived from the audited financial statements at that date. See notes to unaudited condensed consolidated financial statements. CHOCK FULL O' NUTS CORPORATION AND SUBSIDIARIES CONDENSED CONSOLIDATED BALANCE SHEETS October 31, July 31, 1997 1997 (Unaudited) (Note) LIABILITIES AND STOCKHOLDERS' EQUITY Current Liabilities: Current portion of long-term debt $ 3,750,000 $ 766,000 Accounts payable 11,207,594 13,590,697 Accrued expenses 10,512,612 12,148,313 Income taxes 2,330,990 1,957,788 Total current liabilities 27,801,196 28,462,798 Long-term debt, excluding current portion 101,224,599 106,065,753 Other non-current liabilities 3,271,924 3,265,078 Deferred income taxes 7,655,000 7,655,000 Stockholders' equity: Common stock, par value $.25 per share; Authorized 50,000,000 shares: Issued 11,216,572 and 11,211,068 shares 2,804,143 2,802,767 Additional paid-in-capital 51,397,859 51,357,008 Retained earnings 26,917,038 25,349,146 Cost of 475,522 shares in treasury (6,573,719) (6,573,719) Deferred compensation under stock bonus plan and employees' stock ownership plan (1,967,330) (1,053,865) Total stockholders' equity 72,577,991 71,881,337 $212,530,710 $217,329,966 Note: The balance sheet at July 31, 1997 has been derived from the audited financial statements at that date. See notes to unaudited condensed consolidated financial statements. CHOCK FULL O' NUTS CORPORATION AND SUBSIDIARIES UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF INCOME Three Months Ended October 31, 1997 1996 Revenues: Net sales $108,275,295 $ 82,576,510 Rentals from real estate 514,579 522,884 108,789,874 83,099,394 Cost and expenses: Cost of sales 81,535,083 59,155,200 Selling, general and administrative expenses 21,977,843 19,240,819 Expenses of real estate 393,552 424,298 103,906,478 78,820,317 Operating profit 4,883,396 4,279,077 Interest income 62,076 318,434 Interest expense (2,189,594) (2,139,469) Other (deductions)/income - net (33,987) 16,518 Income before income taxes 2,721,891 2,474,560 Income taxes 1,154,000 1,024,000 Net income $1,567,891 $1,450,560 Income per share: Primary $.15 $.14 Fully diluted $.12 $.11 See notes to unaudited condensed consolidated financial statements. 3 of 12 CHOCK FULL O'NUTS CORPORATION AND SUBSIDIARIES UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS Three months Ended October 31, 1997 1996 Operating Activities: Net income $ 1,567,892 $ 1,450,560 Adjustments to reconcile net income to net cash provided by operating activities: Depreciation and amortization of property, plant and equipment 1,668,360 1,750,108 Amortization of deferred compensation and deferred charges 1,190,890 1,091,923 Other, net (320,528) (201,948) Changes in operating assets and liabilities: (Increase) in accounts receivable (6,057,965) (1,659,740) Decrease in inventory 12,998,714 6,499,068 (Increase) in prepaid expenses (215,992) (163,361) (Decrease) in accounts payable, accrued expenses and income taxes (3,645,602) (856,598) NET CASH PROVIDED BY OPERATING ACTIVITIES 7,814,154 7,910,012 Investing Activities: Purchases of marketable securities (5,535) (31,494) Purchases of property, plant and equipment (1,231,039) (1,507,682) NET CASH (USED IN) INVESTING ACTIVITIES (1,236,574) (1,539,176) Financing Activities: (Payments of)/proceeds from long-term debt, net (1,814,154) 189,423 (Advances to)/proceeds from co-packer, net (1,231,817) 1,148,947 Loan to employees' stock ownership plan (1,000,000) NET CASH (USED IN)/PROVIDED BY FINANCING ACTIVITIES (4,045,971) 1,338,370 Increase in Cash and Cash Equivalents 1,903,224 7,709,206 Cash and Cash Equivalents at Beginning of Period 4,585,633 16,293,783 Cash and Cash Equivalents at End of Period $ 6,488,857 $24,002,989 See notes to unaudited condensed financial statements. 4 of 12 CHOCK FULL O' NUTS CORPORATION AND SUBSIDIARIES UNAUDITED CONDENSED CONSOLIDATED STATEMENT OF STOCKHOLDERS' EQUITY Common Stock Issued In Treasury Shares Amount Shares Amount In Thousands Balance at July 31, 1997 11,211 $2,803 476 $6,574 Net income Conversion of debentures 6 1 Deferred compensation under stock bonus plan and employees' stock ownership plan: Amortization Loan to employees' stock ownership plan Balance at October 31, 1997 11,217 $2,804 476 $6,574 See notes to unaudited condensed consolidated financial statements. 5 of 12 CHOCK FULL O' NUTS CORPORATION AND SUBSIDIARIES UNAUDITED CONDENSED CONSOLIDATED STATEMENT OF STOCKHOLDERS' EQUITY Deferred Compensation Under Stock Bonus Plan and Additional Employees' Stock Paid-In Retained Ownership Plan Capital Earnings In Thousands Balance at July 31, 1997 $1,054 $51,357 $25,349 Net income 1,568 Conversion of debentures 41 Deferred compensation under stock bonus plan and employees' stock ownership plan: Amortization (87) Loan to employees' stock ownership plan 1,000 Balance at October 31, 1997 $1,967 $51,398 $26,917 See notes to unaudited condensed consoliated financial statements. 6 of 12 CHOCK FULL O' NUTS CORPORATION AND SUBSIDIARIES NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS October 31, 1997 (A) The accompanying unaudited condensed consolidated financial statements have been prepared in accordance with generally accepted accounting principles for interim financial information and with the instructions to Form 10-Q and Article 10 of Regulation S-X. Accordingly, they do not include all of the information and footnotes required by generally accepted accounting principles for complete financial statements. In the opinion of management, all adjustments (consisting of normal recurring accruals) considered necessary for a fair presentation have been included. Operating results for the three months ended October 31, 1997 and 1996 are not necessarily indicative of the results that may be expected for a full fiscal year. For further information, refer to the consolidated financial statements and footnotes thereto included in the Company's annual report on Form 10-K for the year ended July 31, 1997. (B) Primary per share data is based on the weighted average number of common shares outstanding of 10,738,000 and 10,736,000 for the three months ended October 31, 1997 and 1996, respectively. Fully diluted per share data, assuming conversion of debentures, is based on 22,556,000 shares outstanding for the three months ended October 31, 1997 and 1996. (C) Inventories are stated at the lower of cost (first-in, first-out) or market. The components of inventory consist of the following: October 31, July 31, 1997 1997 Finished goods $41,544,268 $41,747,129 Raw materials 22,998,559 36,412,728 Supplies 5,410,147 4,791,831 $69,952,974 $82,951,688 (D) Under the Company's amended and restated revolving credit and term loan agreements (collectively the "Loan Agreements") with Fleet Capital Corporation and The Chase Manhattan Bank (the "Banks"), the Company may, from time to time, borrow funds from the Banks, provided that the total principal amount of all such loans outstanding through November 30, 1998 may not exceed $40,000,000 and after such date may not exceed $20,000,000. Interest (8.5% at October 31, 1997) on all such loans is equal to the prime rate or at the Company's option the London Interbank Offering Rate plus 1.75%, subject to adjustment based on the level of loans outstanding. Outstanding borrowings under the Loan Agreements may not exceed certain percentages of and are collateralized by, among other things, the trade accounts receivable and inventories, and substantially all of the machinery and equipment and real estate of the Company and its subsidiaries. All loans made under the term loan agreement ($10,000,000 at October 31, 1997) are to be repaid in December 1999. Outstanding loans under the revolving credit agreements are to be repaid in December 1999. Pursuant to the terms of the Loan Agreements, the Company and its subsidiaries, among other things, must maintain a minimum net worth and meet ratio tests for liabilities to net worth and coverage of fixed charges and interest, all as defined. The Loan Agreements also provide, among other things, for restrictions on dividends (except for stock dividends) and require repayment of outstanding loans with excess cash flow, as defined. 7 of 12 (E) Prepaid expenses and other on the unaudited condensed consolidated balance sheets includes deferred income taxes of $1,268,000. (F) In February of 1997, the Financial Accounting Standards Board issued Statement No. 128, "Earnings Per Share", which is required to be adopted on December 31, 1997. At that time, the Company will be required to change the method currently used to compute earnings per share and to restate all prior periods. The Company believes adoption of Statement No. 128 will not have a material impact on earnings per share information currently presented. (G) On November 19, 1997, the Company consummated the sale of one of its downtown Manhattan properties for $6,900,000. The sale will result in an after tax gain of approximately $725,000 or $.07 per share to be recorded in the second quarter ending January 31, 1998. The cost of this property has been reclassified at October 31, 1997 to prepaid expenses and other current assets. The proceeds were used to reduce the Company's outstanding term loans. 8 of 12 CHOCK FULL O' NUTS CORPORATION AND SUBSIDIARIES MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS Certain statements in the "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 Reform Act. See Other Information Item 5. Operations The following is Management's discussion and analysis of certain significant factors that have affected the Company's operations during the periods included in the accompanying unaudited condensed consolidated statements of operations. In January 1997, the Company acquired substantially all of the assets and assumed substantially of the liabilities of Ireland Coffee and Tea Company ("Ireland"). The business of Ireland consists of roasting and distributing coffees to hotels, restaurants and institutions on the East Coast. Net sales from beverage products increased to $107,268,000 or 31% for the three months ended October 31, 1997, compared to the comparable period of the prior year. The increase was primarily due to an increase in the average selling price of coffee and to a lesser extent a 7% increase in coffee pounds sold. Operating profits from beverage products were $5,197,000, an increase of 13% for the three months ended October 31, 1997 compared to the prior year's comparable period. The increase resulted primarily from increased gross margins and to a lesser extent the operations of Ireland, partially offset by increased selling, general and administrative expenses. Increased gross margins were primarily due to an increase in the average selling price of coffee greater than the increase in the average cost of green coffee and to a lesser extent increased coffee pounds sold. During the three months ended October 31, 1997 prices for green coffee ranged from a high of $2.11 to a low of $1.49 per pound. Selling general and administrative expenses increased primarily due to increased salaries, advertising and delivery costs. Certain of the Company's selling expenses vary with the number of pounds sold, therefore selling expense has increased in the 1997 quarter compared to the 1996 quarter. Net sales of Quikava company operated shops increased to $979,000 for the three months ended October 31, 1997 from $805,000 in the comparable period of the prior year. Quikava's future lies in its ability to franchise the concept, thereby generating royalty income on franchise sales ($644,000 in 1997 versus $626,000 in 1996) plus initial franchise fees to cover expenses for headquarters. Company operated shops have been opened in new markets to generate potential franchise interest and gain exposure to the concept. Operating losses amounted to $435,000 for the three months ended October 31, 1997 compared to $438,000 in the comparable period of the prior year. The operating losses consist primarily of headquarters' expenses (primarily payroll and related expenses for franchising infrastructure and pre-opening costs in 1996) and increased shop level losses (primarily due to the number of shops open less than 12 months), partially offset by initial franchise fee income in 1997 and royalty income on franchisee sales. The first year shops opening in new markets with lack of brand recognition resulted in slower sales growth and greater shop level losses than established comparable shops. Net income was $1,577,000 or $.15 per share for the three months ended October 31, 1997, compared to $1,451,000 or $.14 per share for the comparable period of the prior year. The difference was primarily due to increased operating profits from beverage products partially offset by decreased interest income (resulting from decreased invested funds), increased interest expense (resulting from greater amounts of debt outstanding) and increased income taxes. Increased income taxes are primarily attributable to increased income before income taxes. 9 of 12 Liquidity and Capital Resources As of October 31, 1997, working capital was approximately $100,000,000 and the ratio of current assets to current liabilities was 4.6 to 1. As of October 31, 1997, the Company had unused borrowing capacity of approximately $28 million under its credit facilities of $40 million with Fleet Capital Corporation and The Chase Manhattan Bank (see Notes D and G of Notes to Unaudited Condensed Consolidated Financial Statements). The Company plans on expanding its Quikava franchised operations, which are currently operating in 12 locations. The sales of Company operated and franchised units are not material to the Company's consolidated sales. Total Quikava store level opertions are not currently profitable but are being partially offset by franchise fee and royalty income and, in addition, Quikava headquarters' expenses of approximately $1,100,000 on an annual basis are not being absorbed. The Company believes that its cash flow from operations, its cash equivalents and its amended and restated revolving credit and term loan agreements with its Banks provide sufficient liquidity to meet its working capital, expansion and capital requirements. Green Coffee Market Coffee is one of the leading commodities traded on futures exchanges. Supplies fluctuate with the weather and prices have been volatile. The supply and price is affected by multiple factors, such as weather, politics and economics in the coffee producing countries, many of which are lesser developed nations. While coffee trades primarily on the futures market, coffee of the quality level sought by the Company can trade on a negotiated basis at a substantial premium above commodity coffee pricing, depending upon the supply and demand at the time of purchase. The International Coffee Organization, through the imposition of export quotas agreed upon by consumer and producer member nations, has in the past attempted to maintain the commodity prices of green coffees. In July 1989 the refusal of certain countries to participate in the quota system resulted in the dissolution of the agreement and a drop in the prices of coffees. In August 1993, 21 coffee-producing countries formed a new cartel, the Association of Coffee Producing Countries ("ACPC") and announced plans to cut the supply of coffee by 20% beginning October 1, 1993 in an attempt to raise world coffee prices. The effect of the ACPC on coffee prices is difficult to determine in light of the dramatic price increases resulting from the 1994 frosts in Brazil discussed below. Nonetheless, the ACPC met in November 1994 and resolved to sustain green coffee bean prices. In January 1996, the ACPC agreed to extend its current limitations on the supply of green coffee upon their expiration in June 1996 through the 1996/1997 green coffee year. The Company is unable to predict whether the ACPC will be successful in achieving its goals. Based on published statistics the supplies of green coffees held by consumers (roasters and buyers) are currently, near historically low levels. Brazil, the world's largest coffee producer, experienced frosts in June and July of 1994 which reportedly damaged approximately 40% of the green coffee bean crop. The announcement of the Brazilian frost damage caused a substantial increase in green coffee bean prices and other coffee-product prices worldwide. The Company purchases a modest amount of its green coffee beans from Brazil. In the third and fourth quarter of 1994 the Company experienced a significant increase in the price of green coffee beans which carried over into the first three quarters of 1995. The Company was not able to immediately pass through to customers all of the price increases in the third and fourth quarters of 1994 and the first quarter of 1995 following the significant increase in green coffee bean prices that resulted from the Brazilian frosts. Subsequent to such period through January 1997, the Company's green coffee purchases and commitments returned to pricing levels closer to those that existed prior to the June and July 1994 Brazilian frosts. In February 1997, green coffee bean prices began to rise significantly reaching a high of $3.15 per pound in May 1997. This bull market was somewhat unique in that the fundamental cause was very tight stocks of arabica coffee in consuming countries. Historically, bull markets have been the direct result of weather developments in Brazil, specifically cold weather and drought that damages the following crop. Subsequent to May 1997, the green coffee market has been in the $1.44 to $2.11 range. The Company is unable to predict weather events in particular countries that may adversely affect coffee supplies and price. Except for late 1994 and early 1995, the Company generally has been able to pass green coffee price increases through to its customers, thereby maintaining its gross margins. The Company cannot predict whether it will be able to pass inventory price increases through to its customers in full in the future. A significant portion of the Company's green coffee supply is contracted for future delivery, generally between three and twelve months forward (with declining percentages of the supply being subject to future contracts in the latter portions of each year), to ensure both an adequate supply and reduced risk of short-term price fluctuations. Green coffee is a large market with well-established brokers, importers and warehousemen though which the Company manages its requirements. In addition to forward purchases, the Company keeps physical inventory in each of its production facilities and third-party warehouses representing anywhere from four to ten weeks of supply requirements. All coffee purchase transactions are in U.S. dollars, the industry's standard currency. The Company believes that it is not dependent upon any one importer or broker for its supply of green coffee beans from any particular country. Retail Customers are very price-sensitive about the purchase of coffee in supermakets. When retail prices increase dramatically, takeaway declines and consumers switch to less expensive brands and high yield roasts. Likewise, FoodService Customers in times of price increase tend to stretch the use of inventory. Part II. Other Information Item 1. Legal Proceedings - None Item 5. Other Information Certain statements under the caption "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 Reform Act. Such forward looking statements involve known risks, uncertainties, and other factors which may cause the actual results, performance or achievements of the Company 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 availability of green coffee; green coffee prices; competition; success of operating initiatives; development and operating costs, including green coffee prices; advertising and promotional efforts; brand awareness; the existence of or adherence to development schedules; the existence or absence of adverse publicity; availability, locations and terms of sites for Quikava outlets; changes in business strategy or development plans; quality of management; availability, terms and deployment of capital; business abilities and judgment of personnel; availability of qualified personnel; labor and employee benefit costs; changes in or the failure to comply with government regulations; construction costs and other factors. Item 6. Exhibits and Reports on Form 8-K a) Exhibits - Financial Data Schedule - Exhibit 27 - see below b) Reports on Form 8-K - none 11 of 12 Appendix A to item 601 (c) of Regulation S-K (Article 5 of Regulation S-X Chock full o'Nuts Corporation and Subsidiaries) Item Number Item Description Amount 5-02 (1) Cash and cash items $ 6,488,857 5-02 (2) Marketable securities $ -0- 5-02 (3) (a) (1) Notes and accounts receivable - trade $ 45,034,656 5-02 (4) Allowances for doubtful accounts $ 1,420,000 5-02 (6) Inventory $ 69,952,974 5-02 (9) Total current assets $128,139,478 5-02 (13) Property, plant and equipment $ 99,840,505 5-02 (14) Accumulated depreciation $ 51,601,849 5-02 (18) Total assets $212,530,710 5-02 (21) Total current liabilities $ 27,801,196 5-02 (22) Bonds, mortgages and similar debt $101,224,599 5-02 (28) Preferred stock - mandatory redemption -0- 5-02 (29) Preferred stock - no mandatory redemption -0- 5-02 (30) Common stock $ 2,804,143 5-02 (31) Other stockholders' equity $ 69,773,848 5-02 (32) Total liabilities and stockholders'equity $212,530,710 5-03 (b) 1 (a) Net sales of tangible products $108,275,295 5-03 (b) 1 Total revenues $108,789,874 5-03 (b) 2 (a) Cost of tangible goods sold $ 81,535,083 5-03 (b) 2 Total costs and expenses applicable to sales and revenues $103,906,478 5-03 (b) 3 Other costs and expenses $ -0- 5-03 (b) 5 Provision for doubtful accounts and notes $ 547,000 5-03 (b) (8) Interest and amortization of debt $ 2,189,594 5-03 (b) (10) Income before taxes and other items $ 2,721,891 5-03 (b) (11) Income tax expense $ 1,154,000 5-03 (b) (14) Income/loss continuing operations $ 1,567,891 5-03 (b) (15) Discontinued operations -0- 5-03 (b) (17) Extraordinary items -0- 5-03 (b) (18) Cumulative effect - changes in accounting principles -0- 5-03 (b) (19) Net income or loss $ 1,567,891 5-03 (b) (20) Earnings per share - primary $ .15 5-03 (b) (20) Earnings per share - fully diluted $ .12 SIGNATURES Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant duly caused this Report of Form 10-Q to be signed on its behalf by the undersigned, thereunto duly authorized. CHOCK FULL O' NUTS CORPORATION (Registrant) December 11, 1997 Marvin I. Haas President and Chief Executive Officer December 11, 1997 Howard M. Leitner Senior Vice President and Chief Financial and Accounting Officer 12 of 12 ?? EX-27 2
5 3-MOS JUL-31-1998 OCT-31-1997 6488857 0 45034656 1420000 69952974 128139478 99840505 51601849 212530710 27801196 101224599 0 0 2804143 69773848 212530710 108275295 108789874 81535083 103906478 0 547000 2189594 2721891 1154000 1567891 0 0 0 1567891 0.15 0.12
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