-----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, Wph0VyDCyBduUUqfbZtcniIEwfbE6t9McKLmeJb6q+SR4TnXqXc/klpnihEva5n7 7+nuIKghkd+Ipq9J4Dt15Q== 0000913738-96-000028.txt : 19960408 0000913738-96-000028.hdr.sgml : 19960408 ACCESSION NUMBER: 0000913738-96-000028 CONFORMED SUBMISSION TYPE: 10-Q PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 19960229 FILED AS OF DATE: 19960405 SROS: NONE 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: 1934 Act SEC FILE NUMBER: 000-04339 FILM NUMBER: 96544769 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 GOLDEN ENTERPRISES, INC. 2101 Magnolia Avenue South Suite 212 Birmingham, Alabama 35205 205-326-6101 April 5, 1996 Securities and Exchange Commission Washington, D.C. 20549 Attention: Branch of Filings and Reports Gentlemen: Enclosed is our quarterly Report on Form 10-Q as required by Section 13 or 15 (d) of the Securities Exchange Act of 1934. Very truly yours, /s/ John H. Shannon John H. Shannon Vice President/Controller 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 February 29, 1996 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 March 31, 1996. Outstanding at Class March 31, 1996 - --------------------------------- ----------------- Common Stock, Par Value $0.66 2/3 12,205,950 GOLDEN ENTERPRISES, INC. INDEX Part I. Financial Information Page No. Consolidated Condensed Balance Sheets - February 29, 1996 and May 31, 1995 3 Consolidated Condensed Statements of Income - Three Months Ended and Nine Months Ended February 29, 1996 and February 28, 1995 4 Consolidated Condensed Statements of Cash Flows - Nine Months Ended February 29, 1996 and February 28, 1995 5 Notes to Consolidated Condensed Financial Statements 6 Management's Discussion and Analysis of Financial Condition and Results of Operation 7 Part II. Other Information 8 PART I. FINANCIAL INFORMATION GOLDEN ENTERPRISES, INC. AND SUBSIDIARIES CONSOLIDATED CONDENSED BALANCE SHEETS
February 29, May 31, 1996 1995 ----------- ----------- (Unaudited) (Audited) ASSETS Cash and cash equivalents $ 638,665 $ 623,592 Investment Securities 9,083,747 13,828,663 Receivables, net 9,609,310 10,869,699 Inventories: Raw material and supplies 2,563,078 1,697,629 Finished goods 2,380,353 2,857,217 ----------- ----------- 4,943,431 4,554,846 ----------- ----------- Current assets: Prepaid expenses 3,307,488 1,968,851 ----------- ------------ Total current assets 27,582,641 31,845,651 ----------- ----------- Property, plant and equipment, net 21,847,744 18,136,045 Other assets 2,029,976 2,030,234 ----------- ------------ $51,460,361 $52,011,930 ----------- ----------- ----------- ----------- LIABILITIES AND STOCKHOLDERS' EQUITY Current Liabilities: Notes payable, principally to banks $ 0 $ 0 Accounts payable & checks outstanding in excess of bank balance 5,672,840 4,324,632 Accrued and deferred income taxes 439,248 426,463 Other accrued expenses 1,270,148 1,307,049 Current installments of long-term debt 0 0 ----------- ----------- Total current liabilities 7,382,236 6,058,144 ----------- ----------- Long-term debt less current maturities 767,151 598,922 ----------- ----------- Deferred income taxes 1,809,617 1,864,461 ----------- ----------- 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 6,568,368 6,568,368 Retained earnings 35,015,327 36,521,373 ----------- ----------- $50,802,890 $52,308,936 Less: Cost of common shares in treasury (1,622,843 shares at February 29,1996 and 1,566,843 shares at May 31, 1995 (9,301,533) (8,818,533) ----------- ----------- Total stockholders' equity $41,501,357 $43,490,403 ----------- ----------- Total $51,460,361 $52,011,930 ----------- ----------- ----------- ----------- See Accompanying Notes to Consolidated Condensed Financial Statements
GOLDEN ENTERPRISES, INC. & SUBSIDIARIES CONSOLIDATED CONDENSED STATEMENTS OF INCOME (UNAUDITED)
Three Months Ended Nine Months Ended ---------------------------- ---------------------------- February 29, February 28, February 29, February 28, 1996 1995 1996 1995 ----------- ------------ ------------ ------------ REVENUES: Net Sales $30,975,965 $32,261,892 $93,349,200 $93,667,336 Other operating revenues 45,789 202,580 321,320 524,573 Investment income 156,669 144,387 584,175 425,781 ----------- ----------- ----------- ----------- Total revenues 31,178,423 32,608,859 94,254,695 94,617,690 ----------- ----------- ---------- ----------- COSTS AND EXPENSES: Cost of sales 13,948,687 14,020,511 41,599,537 40,559,477 Selling, general and administrative expense 16,406,402 16,606,732 48,310,451 48,087,630 Interest 0 0 0 0 ----------- ---------- ----------- ----------- Total costs and expenses 30,355,089 30,627,243 89,909,988 88,647,107 ----------- ----------- ----------- ----------- Income from continuing operations before income taxes 823,334 1,981,616 4,344,707 5,970,583 Income taxes 314,100 750,343 1,559,061 2,244,819 ----------- ----------- ----------- ----------- Income from continuing operations 509,234 1,231,273 2,785,646 3,725,764 Discontinued operations (Note): (Loss) income from operations of discontinued business, net of related income taxes 0 (22,029) 0 2,490 Gain on disposal of discontinued business, net of related income taxes of $142 0 252 0 252 ----------- ----------- ----------- ----------- Net income 509,234 1,209,496 2,785,646 3,728,506 Per share of common stock (Note 1): Income from continuing operations 0.04 0.10 0.23 0.30 Income from operations of discontinued business 0.00 0.00 0.00 0.00 Gain on disposal of discontinued business 0.00 0.00 0.00 0.00 ----------- ----------- ----------- ----------- Net income $ 0.04 $ 0.10 $ 0.23 $ 0.30 ----------- ----------- ----------- ----------- ----------- ----------- ----------- ----------- Weighted average number of common shares outstanding 12,243,488 12,340,782 12,255,819 12,411,430 ----------- ----------- ----------- ----------- ----------- ----------- ----------- ----------- Cash dividend paid per share of common stock $ .1175 $ .1150 $ .3500 $ .3425 ----------- ----------- ----------- ----------- ----------- ----------- ----------- ----------- See Accompanying Notes to Consolidated Condensed Financial Statements.
GOLDEN ENTERPRISES, INC. AND SUBSIDIARIES CONSOLIDATED CONDENSED STATEMENTS OF CASH FLOWS (UNAUDITED)
NINE MONTHS ENDED ---------------------------- February 29, February 28, 1996 1995 ----------- ----------- Cash flows from operating activities: Net income $ 2,785,646 $ 3,728,506 Adjustment to reconcile net income to net cash provided by operating activities: Depreciation and amortization 1,794,760 2,110,842 Compensation related to stock plan 0 0 Salary Continuation Benefits 168,229 185,437 Deferred income taxes (54,844) (124,373) Gain on sale of equipment (183,537) (384,362) Income from operations of discontinued business 0 0 Dividends received from discontinued business 0 0 Changes in operating assets and liabilities: Decrease (increase) in accounts receivable 1,260,389 286,823 Decrease (increase) in inventories (388,585) (1,145,163) Decrease (increase) in prepaid expenses (1,338,637) (746,846) Decrease (increase) in other assets-long term 258 54 Increase (decrease) in accounts payable and checks outstanding in excess of excess of bank balances 1,348,208 3,364,551 Increase (decrease) in accrued income taxes 12,785 (118,636) Increase (decrease) in accrued expenses (36,901) (117,776) ----------- ----------- 5,367,771 7,039,057 ----------- ----------- Cash flows from investing activities: Purchase of property, plant and equipment (5,540,350) (1,163,615) Proceeds from sale of equipment 217,428 482,319 Proceeds from sale of discontinued operations 0 2,100,000 Net decrease (increase) in investment securities 4,744,916 784,691 ----------- ----------- Net cash provided by (used in) investing activities (578,006) 2,203,395 ----------- ----------- Cash flows from financing activities: Payments of current installments of long-term debt 0 0 Purchase of treasury stock (483,000) (1,468,387) Proceeds from sale of treasury stock 0 182,500 Cash dividend paid (4,291,692) (4,253,869) ----------- ----------- Net cash used in financing activities (4,774,692) (5,539,756) ----------- ----------- Net (decrease) increase in cash and cash equivalents 15,073 3,702,696 Cash and cash equivalents at beginning of year 623,592 642,064 ----------- ----------- Cash and cash equivalents at end of quarter $ 638,665 $ 4,344,760 ----------- ----------- ----------- ----------- Supplemental information: Cash paid during the year for: Income taxes $ 2,156,521 $ 2,487,970 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 February 29, 1996 and February 28, 1995, and its results of operations for the three and nine months ended February 29, 1996 and February 28, 1995 and its cash flow for the nine months ended February 29, 1996 and February 28, 1995. 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, 1995 which is incorporated by reference in Form 10-K. 2. The results of operations for the three and nine months ended February 29, 1996 and February 28, 1995 are not necessarily indicative of the results to be expected for the full year. 3. The Company, as of the close of business January 31, 1995 sold its subsidiaries, Steel City Bolt & Screw, Inc. and Nall & Associates, Inc. The sale of these subsidiaries did not have significant effect on the financial position or results of operations (revenues, net income or earnings per share) of the Company for fiscal year 1995. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS Liquidity and Capital Resources Working Capital was $25.8 million at June 1, 1995 and $20.2 million at the end of the third quarter. Net cash provided by operating activities amounted to $5.4 million for the nine months this year compared to $7.0 million for last year's first nine months. Additions to property, plant and equipment, net of disposals, were $5.5 million this year and $1.1 million last year. Cash dividends of $4.29 million were paid during the first nine months of this year compared to $4.25 million last year. $0.48 million cash was used to purchase treasury stock this year while $1.47 million was used last year, and $4.74 million of cash was provided by a net decrease in investment securities this year compared to $0.78 million last year. The Company's current ratio was a 3.74 to 1.00 at February 29, 1996 compared to 3.93 to 1.00 at February 28, 1995. Management is not aware of any trends or events that will cause a material change in the Company's liquidity. The increase in capital expenditures this year was for the development of new fat-free and low-fat snack food products, and all of these new products will be in distribution during the fourth quarter. Operating Results For the three months ended February 29, 1996, total revenues were down 4.4% from the comparable period in fiscal 1995. Cost of sales was 45.0% of net sales compared to 43.5% last year. Selling, general and administrative expenses were 53.0% of net sales this year and 51.5% last year. For the year-to-date, total revenues decreased 0.4% from the comparable period in fiscal 1995. Cost of sales was 44.6% of net sales compared to 43.3% last year. Selling, general and administrative expenses were 51.8% of net sales this year and 51.3% last year. The Company's third quarter investment income as a percentage of pre-tax income was 19.0% this year compared to 7.3% last year. The increase was due to the decrease in operating income, and the fact that investment income dollars increased 8.5%. For the nine months, investment income was 13.4% of pre-tax income this year and 7.1% last year. For the nine months, investment income dollars increased 34.9%. The Company's effective tax rate for the third quarter was 38.1% compared to 37.9% for last year's third quarter and 35.9% versus 37.6% for the nine months. 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 February 29, 1996. 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: April 5, 1996 /s/ Sloan Y. Bashinsky, Sr. _____________________________ Sloan Y. Bashinsky, Sr. Chairman of the Board Dated: April 5, 1996 /s/ John H. Shannon _________________________ John H. Shannon Vice President/Controller (Principal Accounting Officer) EX-27 2
5 1000 9-MOS MAY-31-1996 FEB-29-1996 638,665 9,083,747 9,609,310 37,000 4,943,431 27,582,641 76,189,279 54,341,535 51,460,361 7,382,236 0 0 0 9,219,195 32,282,162 51,460,361 93,349,200 94,254,695 41,599,537 89,909,988 0 27,000 0 4,344,707 1,559,061 2,785,646 0 0 0 2,785,646 .23 .23
-----END PRIVACY-ENHANCED MESSAGE-----