-----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, Ify6EgKmRK9jjMyUVExsFH+NeeFSFs1gLQMQIW9zJL2Hw52ruh77kHnOfxQOsqA+ AohX9njO1fib4fDtQcoyNQ== 0000913738-99-000041.txt : 19991018 0000913738-99-000041.hdr.sgml : 19991018 ACCESSION NUMBER: 0000913738-99-000041 CONFORMED SUBMISSION TYPE: 10-Q PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 19990831 FILED AS OF DATE: 19991007 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: 99724257 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, l999 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, l999. Outstanding at Class September 30, 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 - August 31, l999 and May 31, l999 3 Consolidated Condensed Statements of Income - Three Months Ended August 31, 1999 and 1998 4 Consolidated Condensed Statements of Cash Flows - Three Months Ended August 31, 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
August 31, May 31, 1999 1999 ___________ ________ (Unaudited) (Audited) ASSETS Cash and cash equivalents $ 464,478 $ 227,120 Investment Securities $ 1,069,783 $ 61,941 Receivables, net $10,004,202 $10,235,523 Inventories: Raw material and supplies $ 2,139,193 $ 2,224,946 Finished goods $ 2,314,739 $ 2,403,663 ___________ ___________ $ 4,453,932 $ 4,628,609 ___________ ___________ Current assets: Prepaid expenses $ 2,198,022 $ 2,348,975 ___________ ___________ Total current assets $18,190,417 $17,502,168 ___________ ___________ Property, plant and equipment, net $20,890,672 $21,525,086 Other assets $ 2,884,498 $ 2,884,498 ___________ ___________ $41,965,587 $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 $ 4,816,881 $ 4,652,089 Accrued and deferred income taxes $ 346,967 $ 255,820 Other accrued expenses $ 858,278 $ 952,366 Current installments of long-term debt $ 0 $ 0 ___________ ___________ Total current liabilities $ 6,022,126 $ 5,860,275 ___________ ___________ Long-term debt less current maturities $ 1,645,660 $ 1,579,453 ___________ ___________ Deferred income taxes $ 1,974,403 $ 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 $26,184,691 $26,361,690 ___________ ___________ $41,903,440 $42,080,439 Less: Cost of common shares in treasury (1,668,793 at August 31, 1999 and 1,667,843 shares at May 31, 1999) $(9,580,042) $(9,576,420) ___________ ___________ Total stockholders' equity $32,323,398 $32,504,019 ___________ ___________ Total $41,965,587 $41,911,752 ___________ ___________ ___________ ___________ See Accompanying Notes to Consolidated Condensed Financial Statements
GOLDEN ENTERPRISES, INC. & SUBSIDIARIES CONSOLIDATED CONDENSED STATEMENTS OF INCOME (UNAUDITED)
Three Months Ended August 31, ___________________________ 1999 1998 ___________ ___________ REVENUES: Net Sales $31,578,250 $31,544,790 Other operating revenues $ 103,212 $ 86,109 Investment income $ 8,584 $ 37,432 ___________ ___________ Total revenues $31,690,046 $31,668,331 ___________ ___________ COSTS AND EXPENSES: Cost of sales $14,577,141 $14,830,694 Selling, general and administrative expense $16,234,955 $15,940,843 Interest $ 0 $ 0 ___________ ___________ Total costs and expenses $30,812,096 $30,771,537 ___________ ___________ Income before income taxes $ 877,950 $ 896,794 Income taxes $ 325,349 $ 310,630 ___________ ___________ Net income $ 552,601 $ 586,164 PER SHARE OF COMMON STOCK: Net Income $ 0.05 $ 0.05 ___________ ___________ ___________ ___________ Weighted average number of common shares outstanding 12,160,444 12,199,776 ___________ ___________ ___________ ___________ Cash dividend paid per share of common stock $ 0.06 $ 0.12 ___________ ___________ ___________ ___________ 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, ___________________________ 1999 1998 __________ __________ Cash flows from operating activities: Net income $ 552,601 $ 586,164 Adjustment to reconcile net income to net cash provided by operating activities: Depreciation and amortization $ 851,249 $ 837,418 Compensation related to stock plan $ 0 $ 0 Salary Continuation Benefits $ 66,207 $ 73,728 Deferred income taxes $ 6,398 $ 70 Gain on sale of equipment $ (52,793) $ (53,929) Changes in operating assets and liabilities: Decrease (increase) in accounts receivable $ 231,321 $ 1,301,531 Decrease (increase) in inventories $ 174,677 $ 241,347 Decrease (increase) in prepaid expenses $ 150,953 $ (399,279) Decrease (increase) in other assets-long term $ 0 $ (1) Increase (decrease) in accounts payable and checks outstanding in excess of bank balances $ 164,792 $ (219,445) Increase (decrease) in accrued income taxes $ 91,147 $ 161,906 Increase (decrease) in accrued expenses $ (94,088) $ (248,384) ___________ ____________ $ 2,142,464 $ 2,281,126 ___________ ___________ Cash flows from investing activities: Purchase of property, plant and equipment $ (221,766) $ (384,444) Proceeds from sale of equipment $ 57,724 $ 54,337 Net decrease (increase) in investment securities $(1,007,842) $ (179,712) ___________ ___________ Net cash provided by (used in) investing activities $(1,171,884) $ (509,819) ___________ ___________ Cash flows from financing activities: Payments of current installments of long-term debt $ 0 $ 0 Purchase of treasury stock $ (3,622) $ (226,408) Proceeds from sale of treasury stock $ 0 $ 0 Cash dividend paid $ (729,600) $(1,464,714) ___________ ___________ Net cash used in financing activities $ (733,222) $(1,691,122) ___________ ___________ Net (decrease) increase in cash and cash equivalents $ 237,358 $ 80,185 Cash and cash equivalents at beginning of year $ 227,120 $ 114,869 ___________ ___________ Cash and cash equivalents at end of quarter $ 464,478 $ 195,054 ___________ ___________ ___________ ___________ Supplemental information: Cash paid during the year for: Income taxes $ 4,921 $ 148,654 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, 1999 and May 31, l999, and its results of operations for the three months and ended August 31, 1999 and 1998 and its cash flows for the three months ended August 31, 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 ended August 31, 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 $12.2 million at the end of the first quarter. Net cash provided by operating activities amounted to $2.1 million for the quarter this year compared to $2.3 million for last year's first quarter. Additions to property, plant and equipment, net of disposals, were $0.22 million this year and $0.38 million last year. Cash dividends of $0.73 million were paid during this year's first quarter compared to $1.46 million last year. Cash in the amount of $0.0036 million was used to purchase treasury stock this year, and $0.23 was used last year, and $1.01 million of cash was used to increase investment securities this year compared to $0.18 million last year. The Company's current ratio was 3.02 to 1.00 at August 31, 1999. Operating Results For the three months ended August 31, l999, total revenues increased 0.07% from the comparable period in fiscal 1999. Cost of sales was 46.2% of net sales compared to 47.0% last year. Selling, general and administrative expenses were 51.4% of net sales this year and 50.5% last year. The Company's investment income as a percentage of pre-tax income was 1.0% this year compared to 4.2% last year. There was an actual dollar decrease in investment income of $77.1% and pre-tax income decreased $2.1%. The Company's effective tax rate for the first quarter was 37.1% compared to 34.6% for last year's first quarter. 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 August 31, 1999 variable rate investment levels, a one-point change in interest rates would impact interest income by $10,698 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. All internal testing has been done, but there is some testing remaining to be done on some of the applications that interface with other companies. The Company is set to do any of this testing that is necessary as the other companies involved become ready. Internal staff has been used primarily for the conversion, and the cost of the project is estimated to be approximately $60,000 and has been expensed as incurred. Contingency plans for Year 2000 related interruptions have been 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 be 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. To the degree possible, the Company is verifying that other companies with which its systems, interface or rely on are currently Year 2000 compliant or are in the process of becoming compliant. While the Company anticipates no major interruption of its business activities, that will be dependent in part upon the ability of these third parties to be Year 2000 complaint. Although the Company is addressing third party issues as explained above, it is not able to require the compliance actions by such parties. Accordingly, while the Company believes its actions in this regard should have the effect of mitigating Year 2000 risks, it cannot completely eliminate them or estimate the ultimate effect that Year 2000 risks will have on its operating results. 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, 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: October 7, l999 /s/ John S. Stein _______________________________________ John S. Stein Chairman and Chief Executive Officer Dated: October 7, 1999 /s/ John H. Shannon _______________________________________ John H. Shannon Vice President/Controller (Principal Accounting Officer) EX-27 2
5 3-MOS MAY-31-1999 AUG-31-1999 464,478 1,069,783 10,124,202 120,000 4,453,932 18,190,417 83,156,475 62,265,803 41,965,587 6,022,126 0 0 0 9,219,195 23,104,203 41,965,587 31,578,250 31,690,046 14,577,141 30,812,096 0 9,000 0 877,950 325,349 552,601 0 0 0 552,601 .05 .05
-----END PRIVACY-ENHANCED MESSAGE-----