-----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, BDnf9WJ3O0pd9jo8uR0lGiZXuCY8eGrX07J5f0+rIhQcRARsU8wLu4k6Q2AZM/rX BqQ1RmzUV0sjVQpKvrj4fA== 0000913738-99-000023.txt : 19990416 0000913738-99-000023.hdr.sgml : 19990416 ACCESSION NUMBER: 0000913738-99-000023 CONFORMED SUBMISSION TYPE: 10-Q PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 19990228 FILED AS OF DATE: 19990415 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: 99594369 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 February 28, 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 March 31, 1999. Outstanding at Class March 31, 1999 _________________________________ __________________ 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 - February 28, 1999 and May 31, 1998 3 Consolidated Condensed Statements of Income - Three Months and Nine Months Ended February 28, 1999 and February 28, 1998 4 Consolidated Condensed Statements of Cash Flows - Nine Months Ended February 28, 1999 and February 28, 1998 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
February 28, May 31, 1999 1998 ____________ _________ (Unaudited) (Audited) ASSETS Cash and cash equivalents $ 497,335 $ 114,869 Investment Securities $ 580,476 $ 3,077,464 Receivables, net $10,570,610 $11,208,786 Inventories: Raw material and supplies $ 2,566,011 $ 2,425,367 Finished goods $ 2,232,169 $ 2,359,201 ___________ ___________ $ 4,798,180 $ 4,784,568 ___________ ___________ Current assets: Prepaid expenses $ 3,186,774 $ 1,899,294 ___________ ___________ Total current assets $19,633,375 $21,084,981 ___________ ___________ Property, plant and equipment, net $21,670,483 $22,973,086 Other assets $ 2,866,682 $ 2,866,681 ___________ ___________ $44,170,540 $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 $ 6,455,239 $ 5,795,698 Accrued and deferred income taxes $ 254,898 $ 468,711 Other accrued expenses $ 911,972 $ 1,304,349 Current installments of long-term debt $ 0 $ 0 ___________ ___________ Total current Liabilities $ 7,622,109 $ 7,568,758 ___________ ___________ Long-term debt less current maturities $ 1,505,726 $ 1,284,543 ___________ ___________ Deferred income taxes $ 2,006,147 $ 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 $26,894,229 $29,671,907 ___________ ___________ $42,612,978 $45,390,656 Less: Cost of common shares in treasury (1,667,843 shares at February 28, 1999 and 1,622,843 shares at May 31, 1998) ($ 9,576,420) ($ 9,301,533) ___________ ___________ Total stockholders' equity $33,036,558 $36,089,123 ___________ ___________ Total $44,170,540 $46,924,748 ___________ ___________ ___________ ___________ 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 28, February 28, ___________________________ ___________________________ 1999 1998 1999 1998 ___________ ___________ ___________ ___________ REVENUES: Net Sales $33,781,343 $32,416,627 $96,144,208 $95,458,542 Other operating revenues $ 298,175 $ 140,763 $ 469,257 $ 516,480 Investment income $ 1,365 $ 20,017 $ 61,848 $ 131,091 ___________ ___________ ___________ ___________ Total revenues $34,080,883 $32,577,407 $96,675,313 $96,106,113 ___________ ___________ ___________ ___________ COSTS AND EXPENSES: Cost of sales $15,899,497 $14,786,764 $45,116,645 $43,708,758 Selling, general and administrative expense $17,889,385 $16,567,141 $50,216,560 $48,363,530 Interest $ 0 $ 0 $ 0 $ 0 ___________ ___________ ___________ ___________ Total costs and expenses $33,788,882 $31,353,905 $95,333,205 $92,072,288 ___________ ___________ ___________ ___________ Income before income taxes $ 292,001 $ 1,223,502 $ 1.342,108 $ 4,033,825 Income taxes $ 106,824 $ 427,419 $ 466,121 $ 1,435,357 ___________ ___________ ___________ ___________ Net income $ 185,177 $ 796,083 $ 875,987 $ 2,598,468 ___________ ___________ ___________ ___________ ___________ ___________ ___________ ___________ PER SHARE OF COMMON STOCK: Net Income $ .01 $ .06 $ .07 $ .21 ___________ ___________ ___________ ___________ ___________ ___________ ___________ ___________ Weighted average number of common shares outstanding 12,160,950 12,205,950 12,174,445 12,205,950 ___________ ___________ ___________ ____________ ___________ ___________ ___________ ____________ Cash dividend paid per share of common stock $ .06 $ .12 $ .30 $ .36 ___________ ___________ ___________ ____________ ___________ ___________ ___________ ____________ See Accompanying Notes to Consolidated Condensed Financial Statements.
GOLDEN ENTERPRISES, INC. AND SUBSIDIARIES CONSOLIDATED CONDENSED STATEMENTS OF CASH FLOWS (UNAUDITED)
NINE MONTHS ENDED February 28, ___________________________ 1999 1998 ___________ ___________ Cash flows from operating activities: Net income $ 875,987 $ 2,598,468 Adjustment to reconcile net income to net cash provided by operating activities: Depreciation and amortization $ 2,461,639 $ 2,327,579 Compensation related to stock plan $ 0 $ 0 Salary Continuation Benefits $ 221,183 $ 176,526 Deferred income taxes $ 23,823 $ 84,311 Gain on sale of equipment ($ 376,975) ($ 392,600) Changes in operating assets and liabilities: Decrease (increase) in accounts receivable $ 638,176 $ 1,664,584 Decrease (increase) in inventories ($ 13,612) $ 182,692 Decrease (increase) in prepaid expenses ($ 1,287,480) ($ 608,052) Decrease (increase) in other assets-long term ($ 1) $ 185 Increase (decrease) in accounts payable and checks outstanding in excess of bank balances $ 659,541 $ 250,556 Increase (decrease) in accrued income taxes ($ 213,813) ($ 233,605) Increase (decrease) in accrued expenses ($ 392,377) ($ 82,131) ___________ ___________ $ 2,596,091 $ 5,968,513 ___________ ___________ Cash flows from investing activities: Purchase of property, plant and equipment ($ 1,301,573) ($ 3,391,297) Proceeds from sale of equipment $ 519,512 $ 424,186 Net decrease (increase) in investment securities $ 2,496,988 $ 2,004,465 ___________ ___________ Net cash provided by (used in) investing activities $ 1,714,927 ($ 962,646) ___________ ___________ 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 ($ 3,653,665) ($ 4,394,142) ___________ ___________ Net cash used in financing activities ($ 3,928,552) ($ 4,394,142) ___________ ___________ Net (decrease) increase in cash and cash equivalents $ 382,466 $ 611,725 Cash and cash equivalents at beginning of year $ 114,869 $ 670,974 ___________ ___________ Cash and cash equivalents at end of quarter $ 497,335 $ 1,282,699 ___________ ___________ ___________ ___________ Supplemental information: Cash paid during the year for: Income taxes $ 966,262 $ 1,629,728 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 28, 1999 and May 31, 1998, and its results of operations for the three months and nine months ended February 28, 1999 and 1998 and its cash flows for the nine months ended February 28, 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, 1998 which is incorporated by reference in Form 10-K. 2. The results of operations for the three months and nine months ended February 28, 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 $13.5 million at June 1, 1998 and $12.0 million at the end of the third quarter. Net cash provided by operating activities amounted to $2.6 million for the nine months this year compared to $6.0 million for last year's first nine months. Additions to property, plant and equipment, net of disposals, were $1.2 million this year and $3.4 million last year. Cash dividends of $3.65 million were paid during this year's first nine months compared to $4.39 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 $2.50 million of cash was provided by a net decrease in investment securities this year compared to $2.00 million last year. The Company's current ratio was 2.58 to 1.00 at February 28, 1999. Operating Results For the three months ended February 28, 1999, total revenues increased 4.62% from the comparable period in fiscal 1998. Cost of sales was 47.1% of net sales compared to 45.6% last year. Higher potato and cooking oil costs were the major factors causing the increase. Selling, general and administrative expenses were 53.0% 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 selling and delivery costs. For the year-to-date, total revenues decreased 0.59% from the comparable period in fiscal 1998. Cost of sales was 46.9% of net sales compared to 45.8% last year. Selling, general and administrative expenses were 52.2% of net sales this year and 50.7% last year. The Company's third quarter investment income as a percentage of pre-tax was 0.47% this year compared to 1.6% last year. There was an actual dollar decrease in investment income of 93.2%, but pre-tax income decreased 76.1%. For the nine months, investment income was 4.6% of pre-tax income this year and 3.2% last year. For the nine months investment income dollars decreased 52.8% but pre-tax income decreased 66.7%. The Company's effective tax rate for the third quarter was 36.6% compared to 34.9% for last year's third quarter and 34.7% versus 35.6% for the nine 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. The Company believes that its year 2000 readiness will be essentially completed by the target date of May 31, 1999, and that any impact of failure to achieve Year 2000 Compliance with any of the Company's systems will be immaterial. 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 28, 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 thereunto duly authorized. GOLDEN ENTERPRISES, INC. ________________________ (Registrant) Dated: April 15, 1999 /s/ John S. Stein ____________________________ John S. Stein Chairman and Chief Executive Officer Dated: April 15, 1999 /s/ John H. Shannon _____________________________ John H. Shannon Vice President/Controller (Principal Accounting Officer) EX-27 2
5 9-MOS MAY-31-1999 FEB-28-1999 497,335 580,476 10,672,610 102,000 4,798,180 19,633,375 82,830,738 61,160,255 44,170,540 7,622,109 0 0 0 9,219,195 23,817,363 44,170,540 96,144,208 96,675,313 45,116,645 96,333,205 0 27,000 0 1,342,108 466,121 875,987 0 0 0 875,987 .07 .07
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