-----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, JhcEd8VCnzOhDt7S0iyvIlVIAbGeoazxPKtUu+5lUYjNa5exKbi9R36oE7rsIdHe Ruf/YsJ829Y0kSuDuStMVg== 0000913738-98-000027.txt : 19981009 0000913738-98-000027.hdr.sgml : 19981009 ACCESSION NUMBER: 0000913738-98-000027 CONFORMED SUBMISSION TYPE: 10-Q PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 19980831 FILED AS OF DATE: 19981008 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: SEC FILE NUMBER: 000-04339 FILM NUMBER: 98722393 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 August 31, 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 September 30, 1998. Outstanding at Class September 30, 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 - August 31, 1998 and May 31, 1998 3 Consolidated Condensed Statements of Income - Three Months Ended August 31, 1998 and 1997 4 Consolidated Condensed Statements of Cash Flows - Three Months Ended August 31, 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 August 31, May 31, 1998 1998 ____________ _________ (Unaudited) (Audited) ASSETS Cash and cash equivalents $ 195,054 $ 114,869 Investment Securities $ 3,257,176 $ 3,077,464 Receivables, net $ 9,907,255 $11,208,786 Inventories: Raw material and supplies $ 2,082,052 $ 2,425,367 Finished goods $ 2,461,169 $ 2,359,201 ___________ ___________ $ 4,543,221 $ 4,784,568 ___________ ___________ Current assets: Prepaid expenses $ 2,298,573 $ 1,899,294 ___________ ___________ Total current assets $20,201,279 $21,084,981 ___________ ___________ Property, plant and equipment, net $22,519,705 $22,973,086 Other assets $ 2,866,682 $ 2,866,681 ___________ ___________ $45,587,666 $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 $ 5,576,253 $ 5,795,698 Accrued and deferred income taxes $ 630,617 $ 468,711 Other accrued expenses $ 1,055,965 $ 1,304,349 Current installments of long-term debt $ 0 $ 0 ___________ ___________ Total current Liabilities $ 7,262,835 $ 7,568,758 ___________ ___________ Long-term debt less current maturities $ 1,358,271 $ 1,284,543 ___________ ___________ Deferred income taxes $ 1,982,394 $ 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 $28,793,357 $29,671,907 ___________ ___________ $44,512,106 $45,390,656 Less: Cost of common shares in treasury (1,659,843 shares at August 31, 1998 and 1,622,843 shares at May 31, 1998) $-9,527,940 $-9,301,533 ___________ ___________ Total stockholders' equity $34,984,166 $36,089,123 ___________ ___________ Total $45,587,666 $46,924,748 ___________ ___________ ___________ ___________ See Accompanying Notes to Consolidated Condensed Financial Statements GOLDEN ENTERPRISES, INC. & SUBSIDIARIES CONSOLIDATED CONDENSED STATEMENTS OF INCOME (UNAUDITED) Three Months Ended August 31, ___________________________ 1998 1997 ___________ ___________ REVENUES: Net Sales $31,544,790 $32,384,378 Other operating revenues $ 86,109 $ 163,986 Investment income $ 37,432 $ 59,843 ___________ ___________ Total revenues $31,668,331 $32,608,207 ___________ ___________ COSTS AND EXPENSES: Cost of sales $14,830,694 $14,620,416 Selling, general and administrative expense $15,940,843 $16,145,498 Interest $ 0 $ 0 ___________ ___________ Total costs and expenses $30,771,537 $30,765,914 ___________ ___________ Income before income taxes $ 896,794 $ 1,842,293 Income taxes $ 310,630 $ 669,307 ___________ ___________ Net income $ 586,164 $ 1,172,986 ___________ ___________ ___________ ___________ Basic and diluted earnings per share $ .05 $ .10 ___________ ___________ ___________ ___________ Basic and diluted weighted shares outstanding 12,199,776 12,205,950 ___________ ___________ ___________ ___________ Cash dividend paid per share of common stock $ .12 $ .12 ___________ ___________ ___________ ___________ See Accompanying Notes to Consolidated Condensed Financial Statements. GOLDEN ENTERPRISES, INC. AND SUBSIDIARIES CONSOLIDATED CONDENSED STATEMENTS OF CASH FLOWS (UNAUDITED) THREE MONTHS ENDED August 31, ___________________________ 1998 1997 ___________ ___________ Cash flows from operating activities: Net income $ 586,164 $ 1,172,986 Adjustment to reconcile net income to net cash provided by operating activities: Depreciation and amortization $ 837,418 $ 754,752 Compensation related to stock plan $ 0 $ 0 Salary Continuation Benefits $ 73,728 $ 58,842 Deferred income taxes $ 70 $ 22,309 Gain on sale of equipment $ -53,929 $ -127,390 Changes in operating assets and liabilities: Decrease (increase) in accounts receivable $ 1,301,531 $ 1,237,174 Decrease (increase) in inventories $ 241,347 $ 100,104 Decrease (increase) in prepaid expenses $ -399,279 $ 315,386 Decrease (increase) in other assets-long term $ -1 $ 0 Increase (decrease) in accounts payable and checks outstanding in excess of bank balances $ -219,445 $ 242,926 Increase (decrease) in accrued income taxes $ 161,906 $ 528,386 Increase (decrease) in accrued expenses $ -248,384 $ -250,020 ___________ ___________ $ 2,281,126 $ 4,055,455 ___________ ___________ Cash flows from investing activities: Purchase of property, plant and equipment $ -384,444 $-1,395,265 Proceeds from sale of equipment $ 54,337 $ 134,889 Net decrease (increase) in investment securities $ -179,712 $-1,196,682 ___________ ___________ Net cash provided by (used in) investing activities $ -509,819 $-2,457,058 ___________ ___________ Cash flows from financing activities: Payments of current installments of long-term debt $ 0 $ 0 Purchase of treasury stock $ -226,408 $ 0 Proceeds from sale of treasury stock $ 0 $ 0 Cash dividend paid $-1,464,714 $-1,464,714 ___________ __________ Net cash used in financing activities $-1,691,122 $-1,464,714 ___________ ___________ Net (decrease) increase in cash and cash equivalents $ 80,185 $ 133,683 Cash and cash equivalents at beginning of year $ 114,869 $ 670,974 ___________ ___________ Cash and cash equivalents at end of quarter $ 195,054 $ 804,657 ___________ ___________ ___________ ___________ Supplemental information: Cash paid during the year for: Income taxes $ 148,654 $ 118,612 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 August 31, 1998 and May 31, 1998, and its results of operations for the three months ended August 31, 1998 and 1997 and its cash flow for the three months ended August 31, 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 ended August 31, 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 $12.9 million at the end of the first quarter. Net cash provided by operating activities amounted to $2.3 million for the quarter this year compared to $4.1 million for last year's first quarter. Additions to property, plant and equipment, net of disposals, were $0.38 million this year and $1.39 million last year. Cash dividends of $1.46 million were paid during this year's first quarter compared to $1.46 million last year. Cash in the amount of $0.23 million was used to purchase treasury stock this year, and none was used last year, and $0.18 million of cash was used to increase investment securities this year compared to $1.20 million last year. The Company's current ratio was 2.78 to 1.00 at August 31, 1998. Operating Results For the three months ended August 31, 1998, total revenues decreased 2.9% from the comparable period in fiscal 1998. Cost of sales was 47.0% of net sales compared to 45.1% last year. Selling, general and administrative expenses were 50.5% of net sales this year and 49.9% last year. The Company's investment income as a percentage of pre-tax income was 4.2% this year compared to 3.2% last year. There was an actual dollar decrease in investment income of $37.4%, but pre-tax income decreased 51.3%. The Company's effective tax rate for the first quarter was 34.6% compared to 36.3% for last year's first quarter. 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. 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 August 31, 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: October 8, 1998 /s/ John S. Stein ____________________________ John S. Stein Chairman, President and Chief Executive Officer Dated: October 8, 1998 /s/ John H. Shannon _____________________________ John H. Shannon Vice President/Controller (Principal Accounting Officer) EX-27 2
5 3-MOS MAY-31-1999 AUG-31-1998 195,054 3,257,176 9,907,255 84,000 4,543,221 20,201,279 82,485,566 59,965,861 45,587,666 7,262,835 0 0 0 9,219,195 25,764,971 45,587,666 31,544,790 31,668,331 14,830,694 30,771,537 0 9,000 0 896,794 310,630 586,164 0 0 0 586,164 .05 .05
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