-----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, ER5+kxHnogDC96R6EK55D1Gya1Zo3CtRKcWyTMBC88Ks6e+KAyxIJdW2l+52Oa39 0/IJ0tANEKuk98NTfPegVw== 0000913738-00-000002.txt : 20000202 0000913738-00-000002.hdr.sgml : 20000202 ACCESSION NUMBER: 0000913738-00-000002 CONFORMED SUBMISSION TYPE: 10-Q PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 19991130 FILED AS OF DATE: 20000114 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: 507460 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, 1999 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, l999. Outstanding at Class December 31, 1999 _____ _________________ Common Stock, Par Value $0.66 2/3 12,160,000 GOLDEN ENTERPRISES, INC. INDEX Part I. Financial Information Page No. Consolidated Condensed Balance Sheets - November 30, l999 and May 31, l999 3 Consolidated Condensed Statements of Income - Three Months Ended November 30, 1999 and 1998 4 Consolidated Condensed Statements of Cash Flows - Six Months Ended November 30, 1999 and 1998 5 Notes to Consolidated Condensed Financial Statements 6 Management's Discussion and Analysis of Financial Condition and Results of Operations 7, 8 Part II. Other Information 9 PART I. FINANCIAL INFORMATION GOLDEN ENTERPRISES, INC. AND SUBSIDIARIES CONSOLIDATED CONDENSED BALANCE SHEETS
November 30, May 31, 1999 1999 ___________ ________ (Unaudited) (Audited) ASSETS Cash and cash equivalents $ 733,942 $ 227,120 Investment Securities $ 446,650 $ 61,941 Receivables, net $10,175,567 $10,235,523 Inventories: Raw material and supplies $ 3,136,231 $ 2,224,946 Finished goods $ 2,760,986 $ 2,403,663 ___________ ___________ $ 5,897,217 $ 4,628,609 ___________ ___________ Current assets: Prepaid expenses $ 3,020,989 $ 2,348,975 ___________ ___________ Total current assets $20,274,365 $17,502,168 ___________ ___________ Property, plant and equipment, net $20,145,150 $21,525,086 Other assets $ 2,884,498 $ 2,884,498 ___________ ___________ $43,304,013 $41,911,752 ___________ ___________ ___________ ___________ LIABILITIES AND STOCKHOLDERS' EQUITY Current Liabilities: Notes payable, principally to banks $ 0 $ 0 Accounts payable & checks outstanding in excess of bank balance $ 6,194,259 $ 4,652,089 Accrued and deferred income taxes $ 255,820 $ 255,820 Other accrued expenses $ 1,085,381 $ 952,366 Current installments of long-term debt $ 0 $ 0 ___________ ___________ Total current liabilities $ 7,535,460 $ 5,860,275 ___________ ___________ Long-term debt less current maturities $ 1,711,867 $ 1,579,453 ___________ ___________ Deferred income taxes $ 1,929,890 $ 1,968,005 ___________ ___________ 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 $25,988,089 $26,361,690 ___________ ___________ $41,706,838 $42,080,439 Less: Cost of common shares in treasury (1,668,793 at November 30, 1999 and 1,667,843 shares at May 31, 1999) $(9,580,042) $(9,576,420) ___________ ___________ Total stockholders' equity $32,126,796 $32,504,019 ___________ ___________ Total $43,304,013 $41,911,752 ___________ ___________ ___________ ___________ 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, ___________________________ ___________________________ 1999 1998 1999 1998 ___________ ___________ ___________ ___________ REVENUES: Net Sales $30,679,772 $30,818,075 $62,258,022 $62,362,865 Other operating revenues $ 87,030 $ 84,973 $ 190,242 $ 171,082 Investment income $ 6,975 $ 23,051 $ 15,559 $ 60,483 ___________ ___________ ___________ ___________ Total revenues $30,773,777 $30,926,099 $62,463,823 $62,594,430 ___________ ___________ COSTS AND EXPENSES: Cost of sales $13,839,695 $14,386,454 $28,416,836 $29,217,148 Selling, general and administrative expense $16,089,551 $16,386,332 $32,324,506 $32,327,175 Interest $ 0 $ 0 $ 0 $ 0 ___________ ___________ ___________ ___________ Total costs and expenses $29,929,246 $39,772,786 $60,741,342 $61,544,323 ___________ ___________ ___________ ___________ Income before income taxes $ 844,531 $ 153,313 $ 1,722,481 $ 1,050,107 Income taxes $ 311,533 $ 48,667 $ 636,882 $ 359,297 ___________ ___________ ___________ ___________ Net income $ 532,998 $ 104,646 $ 1,085,599 $ 690,810 PER SHARE OF COMMON STOCK: Net Income $ 0.04 $ 0.01 $ 0.09 $ 0.06 ___________ ___________ ___________ ___________ ___________ ___________ ___________ ___________ Weighted average number of common shares outstanding 12,160,000 12,162,181 12,160,223 12,181,081 ___________ ___________ ___________ ___________ ___________ ___________ ___________ ___________ Cash dividend paid per share of common stock $ 0.06 $ 0.12 $ 0.12 $ 0.24 ___________ ___________ ___________ ___________ ___________ ___________ ___________ ___________ 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, ___________________________ 1999 1998 __________ ___________ Cash flows from operating activities: Net income $ 1,085,599 $ 690,810 Adjustment to reconcile net income to net cash provided by operating activities: Depreciation and amortization $ 1,664,406 $ 1,652,006 Compensation related to stock plan $ 0 $ 0 Salary Continuation Benefits $ 132,414 $ 147,456 Deferred income taxes $ (38,115) $ 5,502 Gain on sale of equipment $ (112,282) $ (101,814) Changes in operating assets and liabilities: Decrease (increase) in accounts receivable $ 59,956 $ 8,441 Decrease (increase) in inventories $(1,268,608) $(1,001,103) Decrease (increase) in prepaid expenses $ (672,014) $(1,081,664) Decrease (increase) in other assets-long term $ 0 $ (1) Increase (decrease) in accounts payable and checks outstanding in excess of bank balances $ 1,542,170 $ 2,089,355 Increase (decrease) in accrued income taxes $ 0 $ (213,813) Increase (decrease) in accrued expenses $ 133,015 $ (6,099) ___________ ___________ $ 2,526,541 $ 2,189,076 ___________ ___________ Cash flows from investing activities: Purchase of property, plant and equipment $ (613,703) $ (915,951) Proceeds from sale of equipment $ 441,515 $ 95,420 Net decrease (increase) in investment securities $ (384,709) $ 1,973,697 ___________ ___________ Net cash provided by (used in) investing activities $ (556,897) $ 1,153,166 ___________ ___________ Cash flows from financing activities: Payments of current installments of long-term debt $ 0 $ 0 Purchase of treasury stock $ (3,622) $ (274,887) Proceeds from sale of treasury stock $ 0 $ 0 Cash dividend paid $(1,459,200) $(2,924,007) ___________ ___________ Net cash used in financing activities $(1,462,822) $(3,198,894) ___________ ___________ Net (decrease) increase in cash and cash equivalents $ 506,822 $ 143,348 Cash and cash equivalents at beginning of year $ 227,120 $ 114,869 ___________ ___________ Cash and cash equivalents at end of quarter $ 733,942 $ 258,217 ___________ ___________ ___________ ___________ Supplemental information: Cash paid during the year for: Income taxes $ 651,533 $ 895,369 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, 1999 and May 31, l999, and its results of operations for the three months and six months ended November 30, 1999 and 1998 and its cash flows for the six months ended November 30, 1999 and 1998. 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, l999 which is incorporated by reference in Form 10-K. 2. The results of operations for the three months and six months ended November 30, 1999 and 1998 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 $11.6 million at June 1, 1999 and $12.7 million at the end of the second quarter. Net cash provided by operating activities amounted to $2.5 million for the six months this year compared to $2.2 million for last year's first six months. Additions to property, plant and equipment, net of disposals, were $0.28 million this year and $0.92 million last year. Cash dividends of $1.46 million were paid during this year's first six months compared to $2.93 million last year. Cash in the amount of $0.0036 million was used to purchase treasury stock this year, and $0.27 was used last year, and $0.38 million of cash was used to increase investment securities this year, and $1.97 million of cash was provided by a net decrease in investment securities last year. The Company's current ratio was 2.69 to 1.00 at November 30, 1999. Operating Results For the three months ended November 30, 1999, total revenues decreased 0.49% from the comparable period in fiscal 1999. Cost of sales was 45.1% of net sales compared to 46.7% last year. Selling, general and administrative expenses were 52.4% of net sales this year and 53.2% last year. For the year-to-date total revenues decreased 0.21% from the comparable period in fiscal 1999. Cost of sales was 45.6% of net sales compared to 46.9% last year. Selling, general and administrative expenses were 51.9% of net sales this year and 51.8% last year. The Company's second quarter investment income as a percentage of pre-tax income was 0.8% this year compared to 15.0% last year. There was an actual dollar decrease in investment income of 69.7% and pre-tax income increased 45.09%. For the six months investment income was 0.9% of pre-tax income this year and 5.8% last year. For the six months investment income dollar decreased 74.3% and pre-tax income increased 64.0%. The Company's effective tax rate for the second quarter was 36.9% compared to 31.7% for last year's second quarter and 37.0% for the six months this year and 34.2% last year. Market Risk The principal market risks (i.e., the risk of loss arising from adverse changes in market rates and prices) to which the Company is exposed are interest rates on its investment securities, and commodity prices, affecting the cost of its raw materials. The Company's investment securities consist of short-term marketable securities. Presently these are variable rate money market mutual funds. Assuming November 30, 1999 variable rate investment levels, a one-point change in interest rates would impact interest income by $4,467 on an annual basis. The Company is subject to market risk with respect to commodities because its ability to recover increased costs through higher pricing may be limited by the competitive environment in which it operates. The Company purchases its raw materials on the open market, under contract through brokers and directly from growers. Future contracts have been used occasionally to hedge immaterial amounts of commodity purchases but none are presently being used. Year 2000 Compliance All necessary modifications for Year 2000 compliance were completed by the target date of May 31, 1999. All information technology systems and non-IT systems are compliant. Internal staff was used primarily for the conversion, and the cost of the project is estimated to be approximately $60,000 and was expensed as incurred. Contingency plans for Year 2000 related interruptions were developed and include, but are not limited to replacing electronic applications with manual processes, identification of alternate suppliers and increasing raw material and finished goods inventory levels. The most likely worse case scenarios for the Company would have been the temporary inability of suppliers to provide raw materials on a timely basis and of some customers to order and pay on a timely basis. The Company is well in the Year 2000 on the filing date of this report and there have been no Year 2000 Compliance problems. 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 Nobember 30, 1999. 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 hereunto duly authorized. GOLDEN ENTERPRISES, INC. (Registrant) Dated: January 14, 2000 /s/ John S. Stein _______________________________________ John S. Stein Chairman and Chief Executive Officer Dated: January 14, 2000 /s/ John H. Shannon _______________________________________ John H. Shannon Vice President/Controller (Principal Accounting Officer) EX-27 2
5 6-MOS MAY-31-2000 NOV-30-1999 733,942 446,650 10,304,567 129,000 5,897,217 20,274,365 82,878,743 62,733,593 43,304,013 7,535,460 0 0 0 9,219,195 22,907,601 43,304,013 62,258,022 62,463,823 28,416,836 60,741,342 0 18,000 0 1,722,481 636,882 1,085,599 0 0 0 1,085,599 .09 .09
-----END PRIVACY-ENHANCED MESSAGE-----