-----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, L1FDLb+k1m1tnnnqZdI3FR645Eptmi2Y2vDGCE/62N5TifqmCDC9UTQ7ucnwu/61 2SzsaKb4IA/kfkI5LKJ1rA== 0000913738-99-000002.txt : 19990115 0000913738-99-000002.hdr.sgml : 19990115 ACCESSION NUMBER: 0000913738-99-000002 CONFORMED SUBMISSION TYPE: 10-Q PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 19981130 FILED AS OF DATE: 19990114 FILER: COMPANY DATA: COMPANY CONFORMED NAME: GOLDEN ENTERPRISES INC CENTRAL INDEX KEY: 0000042228 STANDARD INDUSTRIAL CLASSIFICATION: MISCELLANEOUS FOOD PREPARATIONS & KINDRED PRODUCTS [2090] IRS NUMBER: 630250005 STATE OF INCORPORATION: DE FISCAL YEAR END: 0531 FILING VALUES: FORM TYPE: 10-Q SEC ACT: SEC FILE NUMBER: 000-04339 FILM NUMBER: 99506569 BUSINESS ADDRESS: STREET 1: 2101 MAGNOLIA AVE STE 212 STREET 2: SOUTH CITY: BIRMINGHAM STATE: AL ZIP: 35205 BUSINESS PHONE: 2053266101 MAIL ADDRESS: STREET 1: 2101 MAGNOLIA AVE SOUTH STREET 2: STE 212 CITY: BIRMINGHAM STATE: AL ZIP: 35205 FORMER COMPANY: FORMER CONFORMED NAME: GOLDEN FLAKE INC DATE OF NAME CHANGE: 19761019 FORMER COMPANY: FORMER CONFORMED NAME: MAGIC CITY FOOD PRODUCTS INC DATE OF NAME CHANGE: 19700805 10-Q 1 UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D. C. 20549 FORM 10-Q (Mark One) (X) QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15 (d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended November 30, 1998 OR ( ) TRANSITION REPORT PURSUANT TO SECTION 13 OR 15 (d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from _________________ to___________ Commission file number 0-4339 GOLDEN ENTERPRISES, INC. ______________________________________________________ (Exact name of registrant as specified in its charter) DELAWARE 63-0250005 ________________________________ __________________________ (State or other jurisdiction of (I. R. S. Employer incorporation or organization) Identification No.) Suite 212, 2101 Magnolia Avenue, South Birmingham, Alabama 35205 ________________________________________ ____________ (Address of Principal Executive Offices) (Zip Code) (205) 326-6101 ____________________________________________________ (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 December 31, 1998. Outstanding at Class December 31, 1998 _________________________________ __________________ Common Stock, Par Value $0.66 2/3 12,160,950 GOLDEN ENTERPRISES, INC. INDEX Part I. Financial Information Page No. Consolidated Condensed Balance Sheets - November 30, 1998 and May 31, 1998 3 Consolidated Condensed Statements of Income - Three Months and Six Months Ended November 30, 1998 and 1997 4 Consolidated Condensed Statements of Cash Flows - Six Months Ended November 30, 1998 and 1997 5 Notes to Consolidated Condensed Financial Statements 6 Management's Discussion and Analysis of Financial Condition and Results of Operations 7 Part II. Other Information 8 PART 1. FINANCIAL INFORMATION GOLDEN ENTERPRISES, INC. AND SUBSIDIARIES CONSOLIDATED CONDENSED BALANCE SHEETS
November 30, May 31, 1998 1998 ____________ _________ (Unaudited) (Audited) ASSETS Cash and cash equivalents $ 258,217 $ 114,869 Investment Securities $ 1,103,767 $ 3,077,464 Receivables, net $11,200,345 $11,208,786 Inventories: Raw material and supplies $ 3,153,960 $ 2,425,367 Finished goods $ 2,631,711 $ 2,359,201 ___________ ___________ $ 5,785,671 $ 4,784,568 ___________ ___________ Current assets: Prepaid expenses $ 2,980,958 $ 1,899,294 ___________ ___________ Total current assets $21,328,958 $21,084,981 ___________ ___________ Property, plant and equipment, net $22,243,424 $22,973,086 Other assets $ 2,866,682 $ 2,866,681 ___________ ___________ $46,439,064 $46,924,748 ___________ ___________ ___________ ___________ LIABILITIES AND STOCKHOLDERS' EQUITY Current Liabilities: Notes payable, principally to banks $ 0 $ 0 Accounts payable & checks outstanding in excess of bank balance $ 7,885,053 $ 5,795,698 Accrued and deferred income taxes $ 254,898 $ 468,711 Other accrued expenses $ 1,298,250 $ 1,304,349 Current installments of long-term debt $ 0 $ 0 ___________ ___________ Total current Liabilities $ 9,438,201 $ 7,568,758 ___________ ___________ Long-term debt less current maturities $ 1,431,998 $ 1,284,543 ___________ ___________ Deferred income taxes $ 1,987,826 $ 1,982,324 ___________ ___________ Stockholder's Equity: Common Stock - $.66 - 2/3 par value: 35,000,000 shares Authorized Issued 13,828,793 shares $ 9,219,195 $ 9,219,195 Additional paid-in capital $ 6,499,554 $ 6,499,554 Retained earnings $27,438,710 $29,671,907 ___________ ___________ $43,157,459 $45,390,656 Less: Cost of common shares in treasury (1,667,843 shares at November 30, 1998 and 1,622,843 shares at May 31, 1998) $-9,576,420 $-9,301,533 ___________ ___________ Total stockholders' equity $33,581,039 $36,089,123 ___________ ___________ Total $46,439,064 $46,924,748 ___________ ___________ ___________ ___________ See Accompanying Notes to Consolidated Condensed Financial Statements
GOLDEN ENTERPRISES, INC. & SUBSIDIARIES CONSOLIDATED CONDENSED STATEMENTS OF INCOME (UNAUDITED) Three Months Ended Six Months Ended
November 30, November 30, ___________________________ ___________________________ 1998 1997 1998 1997 ___________ ___________ ___________ ___________ REVENUES: Net Sales $30,818,075 $30,657,537 $62,362,865 $63,041,915 Other operating revenues $ 84,973 $ 211,731 $ 171,082 $ 375,717 Investment income $ 23,051 $ 51,231 $ 60,483 $ 111,074 ___________ ___________ ___________ ___________ Total revenues $30,926,099 $30,920,499 $62,594,430 $63,528,706 ___________ ___________ ___________ ___________ COSTS AND EXPENSES: Cost of sales $14,386,454 $14,301,578 $29,217,148 $28,921,994 Selling, general and administrative expense $16,386,332 $15,650,891 $32,327,175 $31,796,389 Interest $ 0 $ 0 $ 0 $ 0 ___________ ___________ ___________ ___________ Total costs and expenses $30,772,786 $29,952,469 $61,544,323 $60,718,383 ___________ ___________ ___________ ___________ Income before income taxes $ 153,313 $ 968,030 $ 1,050,107 $ 2,810,323 Income taxes $ 48,667 $ 338,631 $ 359,297 $ 1,007,938 ___________ ___________ ___________ ___________ Net income $ 104,646 $ 629,399 $ 690,810 $ 1,802,385 ___________ ___________ ___________ ___________ ___________ ___________ ___________ ___________ PER SHARE OF COMMON STOCK: Net Income $ .01 $ .05 $ .06 $ .15 ___________ ___________ ___________ ___________ ___________ ___________ ___________ ___________ Weighted average number of common shares outstanding 12,162,181 12,205,950 12,181,081 12,205,950 ___________ ___________ ___________ ____________ ___________ ___________ ___________ ____________ Cash dividend paid per share of common stock $ .12 $ .12 $ .24 $ .24 ___________ ___________ ___________ ____________ ___________ ___________ ___________ ____________ See Accompanying Notes to Consolidated Condensed Financial Statements.
GOLDEN ENTERPRISES, INC. AND SUBSIDIARIES CONSOLIDATED CONDENSED STATEMENTS OF CASH FLOWS (UNAUDITED)
SIX MONTHS ENDED November 30, ___________________________ 1998 1997 ___________ ___________ Cash flows from operating activities: Net income $ 690,810 $ 1,802,385 Adjustment to reconcile net income to net cash provided by operating activities: Depreciation and amortization $ 1,652,006 $ 1,527,535 Compensation related to stock plan $ 0 $ 0 Salary Continuation Benefits $ 147,456 $ 117,684 Deferred income taxes $ 5,502 $ 44,801 Gain on sale of equipment $ -101,814 $ -297,509 Changes in operating assets and liabilities: Decrease (increase) in accounts receivable $ 8,441 $ 589,918 Decrease (increase) in inventories $-1,001,103 $ -67,660 Decrease (increase) in prepaid expenses $-1,081,664 $ -361,635 Decrease (increase) in other assets-long term $ -1 $ 0 Increase (decrease) in accounts payable and checks outstanding in excess of bank balances $ 2,089,355 $ 781,920 Increase (decrease) in accrued income taxes $ -213,813 $ -487,787 Increase (decrease) in accrued expenses $ - 6,099 $ 35,507 ___________ ___________ $ 2,189,076 $ 3,685,159 ___________ ___________ Cash flows from investing activities: Purchase of property, plant and equipment $ -915,951 $-2,439,120 Proceeds from sale of equipment $ 95,420 $ 305,710 Net decrease (increase) in investment securities $ 1,973,697 $ 2,065,163 ___________ ___________ Net cash provided by (used in) investing activities $ 1,153,166 $ -68,247 ___________ ___________ Cash flows from financing activities: Payments of current installments of long-term debt $ 0 $ 0 Purchase of treasury stock $ -274,887 $ 0 Proceeds from sale of treasury stock $ 0 $ 0 Cash dividend paid $-2,924,007 $-2,929,428 ___________ ___________ Net cash used in financing activities $-3,198,894 $-2,929,428 ___________ ___________ Net (decrease) increase in cash and cash equivalents $ 143,348 $ 687,484 Cash and cash equivalents at beginning of year $ 114,869 $ 670,974 ___________ ___________ Cash and cash equivalents at end of quarter $ 258,217 $ 1,358,458 ___________ ___________ ___________ ___________ Supplemental information: Cash paid during the year for: Income taxes $ 895,369 $ 1,450,924 Interest $ 0 $ 0 See Accompanying Notes to Consolidated Condensed Financial Statements.
GOLDEN ENTERPRISES, INC. AND SUBSIDIARIES NOTES TO CONSOLIDATED CONDENSED FINANCIAL STATEMENTS 1. In the opinion of management, the accompanying unaudited consolidated condensed financial statements contain all adjustments (consisting of only normal recurring accruals) necessary to present fairly its financial position as of November 30, 1998 and May 31, 1998, and its results of operations for the three months and six months ended November 30, 1998 and 1997 and its cash flow for the six months ended November 30, 1998 and 1997. The accounting policies followed by the Company are set forth in note 1 to the Company's financial statements in the Annual Report to stockholders for fiscal year ended May 31, 1998 which is incorporated by reference in Form 10-K. 2. The results of operations for the three months and six months ended November 30, 1998 and 1997 are not necessarily indicative of the results to be expected for the full year. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS Liquidity and Capital Resources Working Capital was $13.5 million at June 1, 1998 and $11.9 million at the end of the second quarter. Net cash provided by operating activities amounted to $2.2 million for the six months this year compared to $3.7 million for last year's first six months. Additions to property, plant and equipment, net of disposals, were $0.92 million this year and $2.4 million last year. Cash dividends of $2.93 million were paid during this year's first six months compared to $2.93 million last year. Cash in the amount of $0.27 million was used to purchase treasury stock this year and none was used last year, and $1.97 million of cash was provided by a net decrease in investment securities this year compared to $2.07 million last year. The Company's current ratio was 2.26 to 1.00 at November 30, 1998. Operating Results For the three months ended November 30, 1998, total revenues increased 0.02% from the comparable period in fiscal 1998. Cost of sales was 46.7% of net sales compared to 46.7% last year. Selling, general and administrative expenses were 53.2% of net sales this year and 51.1% last year. The increase in this percentage was due to an increase in advertising and promotional expenses, and costs related to expansion into new market areas. For the year-to-date, total revenues decreased 1.47% from the comparable period in fiscal 1998. Cost of sales was 46.9% of net sales compared to 45.9% last year. Selling, general and administrative expenses were 51.8% of net sales this year and 50.4% last year. The Company's second quarter investment income as a percentage of pre-tax was 15.0% this year compared to 5.3% last year. There was an actual dollar decrease in investment income of 55.0%, but pre-tax income decreased 84.2%. For the six months, investment income was 5.8% of pre-tax income this year and 4.0% last year. For the six months investment income dollars decreased 45.5% but pre-tax income decreased 62.6%. The Company's effective tax rate for the second quarter was 31.7% compared to 35.0% for last year's second quarter and 34.2% versus 35.9% for the six months. Year 2000 Compliance As previously reported in the Company's MD&A for the year ended May 31, 1998, the necessary modifications for year 2000 Compliance are being made and all of them will be completed in ample time to avoid problems. The projected date for completion of all modifications is May 31, 1999. Internal staff is being used primarily for this conversion and the cost of the project is immaterial to the Company and is expensed as incurred. To the degree possible, the Company is verifying that other companies with which its system interface or rely on are currently year 2000 compliant or are in the process of becoming compliant. PART II. OTHER INFORMATION Item 6. Exhibits and Reports on Form 8-K (b) Reports on Form 8-K - There were no reports on form 8-K filed for the three months ended November 30, 1998. 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 undersigned thereunto duly authorized. GOLDEN ENTERPRISES, INC. ________________________ (Registrant) Dated: January 14, 1999 /s/ John S. Stein ____________________________ John S. Stein Chairman and Chief Executive Officer Dated: January 14, 1999 /s/ John H. Shannon _____________________________ John H. Shannon Vice President/Controller (Principal Accounting Officer) EX-27 2
5 6-MOS MAY-31-1999 NOV-30-1998 258,217 1,103,767 11,293,345 93,000 5,785,671 21,328,958 82,912,996 60,669,572 46,439,064 9,438,201 0 0 0 9,219,195 24,361,844 46,439,064 62,362,865 62,594,430 29,217,148 61,544,323 0 18,000 0 1,050,107 359,297 690,810 0 0 0 690,810 .06 .06
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