-----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, U0HcUoSvPdpAy7OEPqOJUsS06sltdb4Q6Wd4vnCJ81xT33cq1YljKd2BZu2boLYl SDan1dyu8pHqsDUqNFjrNw== /in/edgar/work/0001114639-00-000034/0001114639-00-000034.txt : 20001016 0001114639-00-000034.hdr.sgml : 20001016 ACCESSION NUMBER: 0001114639-00-000034 CONFORMED SUBMISSION TYPE: 10-Q PUBLIC DOCUMENT COUNT: 1 CONFORMED PERIOD OF REPORT: 20000831 FILED AS OF DATE: 20001013 FILER: COMPANY DATA: COMPANY CONFORMED NAME: GOLDEN ENTERPRISES INC CENTRAL INDEX KEY: 0000042228 STANDARD INDUSTRIAL CLASSIFICATION: [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: 739810 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 0001.txt 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, 2000 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, 2000. Outstanding at Class September 30, 2000 Common Stock, Par Value $0.66 2/3 11,973,00 GOLDEN ENTERPRISES, INC. INDEX Part I. Financial Information Page No. Consolidated Condensed Balance Sheets - August 31, 2000 and May 31, 2000 3 Consolidated Condensed Statements of Income - Three Months Ended August 31, 2000 and 1999 4 Consolidated Condensed Statements of Cash Flows - Three Months Ended August 31, 2000 and 1999 5 Notes to Consolidated Condensed Financial Statements 6 Independent Accountant's Report 7 Management's Discussion and Analysis of Financial Condition and Results of Operations 8,9 Part II. Other Information 10 PART I. FINANCIAL INFORMATION GOLDEN ENTERPRISES, INC. AND SUBSIDIARY CONSOLIDATED CONDENSED BALANCE SHEETS August 31, May 31, 2000 2000 (Unaudited) (Audited) ASSETS Cash and cash equivalents $1,111,376 $835,074 Investment Securities $5,352,010 $4,421,843 Receivables, net $7,956,263 $8,604,294 Inventories: Raw material and supplies $1,816,070 $1,743,910 Finished goods $2,759,148 $2,298,435 $4,575,218 $4,042,345 Current assets: Prepaid expenses $2,090,520 $2,203,930 Net held for disposal for Nashville Plant $3,324,683 $3,324,683 Total current assets $24,410,070 $23,432,169 Property, plant and equipment, net $14,945,649 $15,119,208 Other assets $2,881,879 $2,881,880 $42,237,598 $41,433,257 LIABILITIES AND STOCKHOLDERS' EQUITY Current Liabilities: Notes payable, principally to banks $0 $0 Accounts payable & checks outstanding in excess of bank balanace $5,935,341 $5,618,793 Accrued and deferred income taxes $731,421 $123,605 Other accrued expenses $1,385,998 $1,737,359 Current installments of long-term debt $38,406 $37,648 Total current liabilities $8,091,166 $7,517,405 Long-term debt less current maturities $1,827,040 $1,806,633 Deferred income taxes $1,541,003 $1,581,252 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 $25,240,105 $24,686,435 $40,958,854 $40,405,184 Less: Cost of common shares in treasury (1,855,793 at August 31, 2000 and 1,763,793 at May 31, 2000) ($10,180,465) ($9,877,217) Total stockholders' equity $30,778,389 $30,527,967 Total $42,237,598 $41,433,257 See Accompanying Notes to Consolidated Condensed Financial Statements -3- Three Months Ended August 31, GOLDEN ENTERPRISES, INC & SUBSIDIARY 2000 1999 CONSOLIDATED CONDENSED STATEMENTS OF INCOME (UNAUDITED) REVENUES: Net Sales....................................... $28,909,549 $31,578,250 Other operating revenues........................ $114,811 $103,212 Investment income............................... $60,793 $8,584 Total revenues................................ $29,085,153 $31,690,046 COSTS AND EXPENSES: Cost of sales................................... $12,726,901 $14,577,141 Selling, general and administrative expense..... $14,353,887 $16,234,955 Interest $0 $0 Total costs and expenses....................... $27,080,788 $30,812,096 Income before income taxes......................... $2,004,365 $877,950 Income taxes....................................... $732,254 $325,349 Net income..................................... $1,272,111 $552,601 PER SHARE OF COMMON STOCK: Net Income $0.11 $0.05 Weighted average number of common shares outstanding 11,998,761 12,160,444 Cash dividend paid per share of common stock $0.06 $0.06 See Accompanying Notes to Consolidated Condensed Financial Statements. -4- GOLDEN ENTERPRISES, INC. AND SUBSIDIARY CONSOLIDATED CONDENSED STATEMENTS OF CASH FLOWS (UNAUDITED) THREE MONTHS ENDED August 31, 2000 1999 Cash flows from operating activities: Net income..........................................$1,272,111 $552,601 Adjustment to reconcile net income to net cash provided by operating activities: ........ Depreciation and amortization.......................$623,540 $851,249 Compensation related to stock plan.................. $0 $0 Salary Continuation Benefits.........................$30,298 $66,207 Deferred income taxes...............................($40,249) $6,398 Gain on sale of equipment...........................($78,633) ($52,793) Changes in operating assets and liabilities: Decrease (increase) in accounts receivable............$648,031 $231,321 Decrease (increase) in inventories...................($532,873) $174,677 Decrease (increase) in prepaid expenses...............$113,410 $150,953 Decrease (increase) in other assets-long term ........ $1 $0 Increase (decrease) in accounts payable and checks outstanding in excess of bank balances.....................................$316,548 $164,792 Increase (decrease) in accrued income taxes .......$607,816 $91,147 Increase (decrease) in accrued expenses...........($351,361) ($94,088) $2,608,639 $2,142,464 Cash flows from investing activities: Purchase of property, plant and equipment...........($473,628) ($221,766) Proceeds from sale of equipment......................$102,279 $57,724 Net decrease (increase) in investment securities......($930,167) ($1,007,842) Net cash provided by (used in) investing activities..........................($1,301,516) ($1,171,884) Cash flows from financing activities: Payments of current installments of long-term debt....($9,132) $0 Purchase of treasury stock..........................($303,248) ($3,622) Proceeds from sale of treasury stock................ $0 $0 Cash dividend paid................................. ($718,441) ($729,600) Net cash used in financing activities......... ($1,030,821) ($733,222) Net (decrease) increase in cash and cash equivalents.. $276,302 $237,358 Cash and cash equivalents at beginning of year........ $835,074 $227,120 Cash and cash equivalents at end of quarter......... $1,111,376 $464,478 Supplemental information: Cash paid during the year for: Income taxes................................ $23,248 $4,921 Interest.................................... $0 $0 See Accompanying Notes to Consolidated Condensed Financial Statements. -5- GOLDEN ENTERPRISES, INC. AND SUBSIDIARY NOTES TO UNAUDITED 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, 2000 and May 31, 2000, and its results of operations for the three months and ended August 31, 2000 and 1999 and its cash flows for the three months ended August 31, 2000 and 1999. 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, 2000 which is incorporated by reference in Form 10-K. 2. The results of operations for the three months ended August 31, 2000 and 1999 are not necessarily indicative of the results to be expected for the full year. INDEPENDENT ACCOUNTANT'S REPORT We have reviewed the accompanying interim consolidated balance sheet of Golden Enterprises, Inc. and subsidiary as of August 31, 2000 and the related interim consolidated statements of income and cash flows for the three-month period then ended. These financial statements are the responsibility of the Company's management. We conducted our review in accordance with standards established by the American Institute of Certified Public Accountants. A review of interim financial statements consists principally of applying analytical procedures to financial data and making inquiries of persons responsible for financial and accounting matters. It is substantially less in scope than an audit conducted in accordance with generally accepted auditing standards, the objective of which is the expressions of an opinion regarding the financial statements taken as a whole. According, we do not express such an opinion. Based on our review, we are not aware of any material modifications that should be made to the accompanying financial statements for them to be in conformity with generally accepted accounting principles. Birmingham, Alabama October 12, 2000 DUDLEY, HOPTON-JONES, SIMS & FREEMAN PLLP MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS Liquidity and Capital Resources Working Capital was $15.9 million at June 1, 2000 and $16.3 million at the end of the first quarter. Net cash provided by operating activities amounted to $2.6 million for the quarter this year compared to $2.1 million for last year's first quarter. Additions to property, plant and equipment, net of disposals, were $0.45 million this year and $0.22 million last year. Cash dividends of $0.72 million were paid during this year's first quarter compared to $0.73 million last year. Cash in the amount of $0.30 million was used to purchase treasury stock this year, and $0.0036 was used last year, and $0.93 million of cash was used to increase investment securities this year compared to $1.01 million last year. The Company's current ratio was 3.02 to 1.00 at August 31, 2000. Operating Results For the three months ended August 31, 2000, total revenues decreased 8.22% from the comparable period in fiscal 2000. This first quarter cost of sales was 44.0% compared to 46.2% last year. Selling, general and administrative expenses were 49.7% of net sales this year and 51.4% last year. The Company's investment income as a percentage of pre-tax income was 3.0% this year compared to 1.0% last year. There was an actual dollar increase in investment income of 508.2% and pre-tax income increased 128.3%. The Company's effective tax rate for the first quarter was 36.5% compared to 37.1% 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 and municipal obligations. Assuming August 31, 2000 variable rate investment levels, a one-point change in interest rates would impact interest income by $48,338 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. 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, 2000. 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 13, 2000 _______________________________________ John S. Stein Chairman and Chief Executive Officer Date: October 13, 2000 ____________________________________ John H. Shannon Vice President/Controller (Principal Accounting Officer) - -12- DOCUMENT TYPE EX-27 TEXT ARTICLE 5 MULTIPLIER TABLE S PERIOD TYPE 3 MONTHS FISCAL-YEAR-END MAY-31-2001 PERIOD END AUG-31-2000 CASH $1,111,376.00 SECURITIES $5,352,010.00 RECEIVABLES $8,562,763.00 ALLOWANCES $606,500.00 INVENTORY $4,575,218.00 CURRENT-ASSETS $24,410,070.00 PROPERTY-PLANT & EQUIPMENT $71,230,152.00 DEPRECIATION $56,284,503.00 TOTAL ASSETS $42,237,598.00 CURRENT LIABILITIES $8,091,166.00 BOND .00 COMMON $9,219,195.00 PREFERRED MANDATORY .00 PREFERRED .00 OTHER $21,559,194.00 TOTAL LIABILITY AND EQUITY $42,237,598.00 SALES $28,909,549.00 TOTAL REVENUES $29,085,153.00 CGS $12,762,901.00 TOTAL COSTS $27,080,788.00 OTHER EXPENSES .00 LOSS PROVISION $6,500.00 INTEREST EXPENSE .00 INCOME PRETAX $2,004,365.00 INCOME TAX $732,254.00 INCOME-CONTINUING $1,272,111.00 DISCONTINUED .00 EXTRAORDINARY .00 CHANGES .00 NET-INCOME $1,272,111.00 EPS PRIMARY .11 EPS DILLUTED .11 -----END PRIVACY-ENHANCED MESSAGE-----