-----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, RGmULFNJw71XLk3yY3mtysU7umSo5v1RCGyFxArYbAhAYJ81dPDcQTFtUBFmAMr3 4UlfG9zVMDInm45n4c3PGw== 0001114639-01-000002.txt : 20010206 0001114639-01-000002.hdr.sgml : 20010206 ACCESSION NUMBER: 0001114639-01-000002 CONFORMED SUBMISSION TYPE: 10-Q PUBLIC DOCUMENT COUNT: 1 CONFORMED PERIOD OF REPORT: 20001130 FILED AS OF DATE: 20010112 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: 1508004 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 November 30, 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 208, 2140 11TH Avenue, South Birmingham, Alabama 35205 (Address of Principal Executive Offices) (Zip Code) (205) 933-9300 (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 December 31, 2000. Outstanding at Class December 31, 2000 Common Stock, Par Value $0.66 2/3 11,963,200 GOLDEN ENTERPRISES, INC. INDEX Part I. Financial Information Page No. Consolidated Condensed Balance Sheets - November 30, 2000 and May 31, 2000 3 Consolidated Condensed Statements of Income - Three Months and Six Months ended November 30, 4 2000 and 1999 Consolidated Condensed Statements of Cash Flows - Six Months Ended November 30, 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 SUBSIDIARIES CONSOLIDATED CONDENSED BALANCE SHEETS November 30, May 31, 2000 2000 (Unaudited) (Audited) ASSETS Cash and cash equivalents $615,807 $835,074 Investment Securities $5,244,711 $4,421,843 Receivables, net $7,760,734 $8,604,294 Inventories: Raw material and supplies $2,548,824 $1,743,910 Finished goods $2,378,502 $2,298,435 $4,927,326 $4,042,345 CURRENT ASSETS: Prepaid expense $3,157,907 $2,203,930 Net held for disposal for Nashville Plant $0 $3,324,683 Total current assets $21,706,485 $23,432,169 Property, plant and equipment, net $14,686,176 $15,119,208 Long-term Note Receivable $2,090,000 $0 Other assets $2,881,879 $2,881,880 $41,364,540 $41,433,257 LIABILITIES AND STOCKHOLDERS' EQUITY Current Liabilities: Checks outstanding in excess of bank balance $1,074,344 $620,465 Accounts payable $4,794,225 $4,998,328 Accrued and deferred income taxes $123,605 $123,605 Other accrued expenses $905,686 $1,737,359 Current installments of long-term debt $39,179 $37,648 Total current liabilities $6,937,039 $7,517,405 Long-term debt less current maturities $1,847,248 $1,806,633 Deferred income taxes $1,502,989 $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 $25,571,092 $24,686,435 $41,289,841 $40,405,184 Less: Cost of common shares in treasury (1,863,593 at November 30, 2000 and 1,763,793 shares at May 31, 2000 -$10,212,577 -$9,877,217 Total stockholders' equity $31,077,264 $30,527,967 Total $41,364,540 $41,433,257 See Accompanying Notes to Consolidated Condensed Financial Statements Three Months Ended Six Months Ended November 30, November 30, GOLDEN ENTERPRISES, INC & SUBSIDIARIES 2000 1999 2000 1999 CONSOLIDATED CONDENSED STATEMENTS OF INCOME (UNAUDITED) REVENUES: Net Sales $27,669,893 $30,679,722 $56,579,442 $62,258,022 Other operating reve $530,614 $87,030 $645,425 $190,242 Investment income $84,871 $6,975 $145,664 $15,559 Total revenues $28,285,378 $30,773,727 $57,370,531 $62,463,823 COST AND EXPENSES: Cost of sales $12,921,727 $13,839,695 $25,648,628 $28,416,836 Selling, general and administrative expense $13,674,390 $16,089,551 $28,028,277 $32,324,506 Interest $0 $0 $0 $0 Total costs and expenses $26,596,117 $29,929,246 $53,676,905 $60,741,342 Income before income taxes $1,689,261 $844,531 $3,693,626 $1,722,481 Income taxes $609,960 $311,533 $1,342,214 $636,882 Net income $1,079,301 $532,998 $2,351,412 $1,085,599 PER SHARE OF COMMON STOCK: Net Income $0.09 $0.04 $0.20 $0.09 Weighted average number of common shares outstanding 11,971,452 12,160,000 11,985,181 12,160,223 Cash dividend paid per share of common stock $0.0625 $0.06 $0.1225 $0.12 See Accompanying Notes to Consolidated Condensed Financial Statements. -4- GOLDEN ENTERPRISES, INC. AND SUBSIDIARIES CONSOLIDATED CONDENSED STATEMENTS OF CASH FLOWS (UNAUDITED) SIX MONTHS ENDED November 30, 2000 1999 Cash flows from operating activities: Net income $2,351,412 $1,085,599 Adjustment to reconcile net income to net cash provided by operating activities: Depreciation and amortization $1,234,430 $1,664,406 Compensation related to stock plan $0 $0 Salary Continuation Benefits $60,595 $132,414 Deferred income taxes -$78,263 -$38,115 Gain on sale of equipment -$575,344 -$112,282 Changes in operating assets and liabilities: Decrease (increase) in accounts receivable $843,560 $59,956 Decrease (increase) in inventories -$884,981 -$1,268,608 Decrease (increase) in prepaid expenses -$953,977 -$672,014 Decrease (increase) in other assets- long te $1 $0 Increase (decrease) in accounts payable -$204,103 $1,542,170 Increase (decrease) in accrued income taxes $0 $0 Increase (decrease) in accrued expenses -$831,673 $133,015 $961,657 $2,526,541 Cash flows from investing activities: Purchase of property, plant and equipment -$831,903 -$613,703 Proceeds from sale of equipment $130,532 $441,515 Cash received from disposal of Nashville Plant $1,710,000 $0 Net decrease (increase) in investment securi -$822,868 -$384,709 Net cash provided by (used in) Investing activities $185,761 -$556,897 Cash flows from financing activities: (Decrease) increase in checks outstanding in excess of bank balance $453,879 $0 Payments of current installments of long-term -$18,449 $0 Purchase of treasury stock -$335,360 -$3,622 Proceeds from sale of treasury stock $0 $0 Cash dividend paid -$1,466,755 -$1,459,200 Net cash used in financing activities -$1,366,685 -$1,462,822 Net (decrease) increase in cash and cash equity -$219,267 $506,822 Cash and cash equivalents at beginning of year $835,074 $227,120 Cash and cash equivalents at end of quarter $615,807 $733,942 Supplemental information: Cash paid during the year for: Income taxes $1,279,038 $651,533 Interest $0 $0 See Accompanying Notes to Consolidated Condensed Financial Statements. -5- GOLDEN ENTERPRISES, INC. AND SUBSIDIARIES NOTES TO CONSOLIDATED CONDENSED FINANCIAL STATEMENTS 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 November 30, 2000 and May 31, 2000, and its results of operations for the three months and six months ended November 30, 2000 and 1999 and its cash flows for the six months ended November 30, 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 and six months ended November 30, 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 November 30, 2000 and the related interim consolidated statements of income and cash flows for the six-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. Accordingly, 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 January 12, 2001 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 $14.8 million at the end of the second quarter. Net cash provided by operating activities amounted to $0.96 million for the six months this year compared to $2.5 million for last year's first six months. The sale of the Nashville manufacturing plant and equipment was completed on October 25, 2000 for $3.8 million with $1.71 million in cash and $2.09 million in secured notes. The sale was part of the Restructuring Plan approved by the Board of Directors in January, 2000. The only continuing liability at November 30, 2000 related to the restructuring charge was termination benefits of $98,038. This balance will be paid in the third quarter. Additions to property, plant and equipment, net of disposals, were $0.80 million this year and $0.28 million last year. Cash dividends of $1.47 million were paid during this year's first six months compared to $1.46 million last year. Cash in the amount of $0.34 million was used to purchase treasury stock this year, and $0.0036 million was used last year, and $0.82 million of cash was used to increase investment securities this year, and $0.38 million of cash was used last year. The Company's current ratio was 3.1 to 1.00 at November 30, 2000. Operating Results For the three months ended November 30, 2000, total revenues decreased 8.09% from the comparable period in fiscal 2000. Cost of sales was 46.7% of net sales compared to 45.1% last year. Selling, general and administrative expenses were 49.4% of net sales this year and 52.4% last year. For the year-to-date total revenues decreased 8.15% from the comparable period in fiscal 2000. Cost of sales was 45.3% of net sales compared to 45.6% last year. Selling, general and administrative expenses were 49.5% of net sales this year and 51.9% last year. The Company's second quarter investment income as a percentage of pre-tax income was 5.0% this year compared to 0.8% last year. There was an actual dollar increase in investment income of 1,116.8% and pre-tax income increased 100.02%. For the six months investment income was 3.9% of pre-tax income this year and 0.9% last year. For the six months investment income dollars increased 836.2% and pre-tax income increased 114.4%. The Company's effective tax rate for the second quarter was 36.1% compared to 36.9% for last year's second quarter and 36.3% for the six months this year and 37.0% last year. 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 November 30, 2000 variable rate investment levels, a one-point change in interest rates would impact interest income by $43,759 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 November 30, 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: January 12, 2001 John S. Stein Chairman and Chief Executive Officer Date: January 12, 2001 John H. Shannon Vice President/Controller (Principal Accounting Officer) DOCUMENT TYPE EX-27 TEXT ARTICLE 5 MULTIPLIER TABLE s PERIOD TYPE 6 MONTHS FISICAL-YEAR-END MAY-31-2001 PERIOD END NOV-30-2000 CASH $5,244,711.00 SECURITIES $5,244,711.00 RECEIVABLES $8,367,234.00 ALLOWANCES $606,500.00 INVENTORY $4,927,326.00 CURRENT-ASSETS $21,706,485.00 PROPERTY, PLANT & EQUIPMENT $71,326,626.00 DEPRECIATION $56,640,450.00 TOTAL ASSETS $41,364,540.00 CURRENT LIABILITIES $6,937,039.00 BONDS .00 COMMON $9,219,195.00 PREFERRED MANDATORY .00 PREFERRRED .00 OTHER $21,858,069.00 TOTAL LIABILITY AND EQUITY $41,364,540.00 SALES $56,579,442.00 TOTAL REVENUES $57,370,531.00 CGS $25,648,628.00 TOTAL COSTS $53,676,905.00 OTHER EXPENSES .00 LOSS PROVISION $6,500.00 INTEREST EXPENSE .00 INCOME PRETAX $3,693,629.00 INCOME TAX $1,342,214.00 INCOME-CONTINUING $2,351,412.00 DISCOUNTINUED .00 EXTRAORDINARY .00 CHANGES .00 NET-INCOME $2,351,412.00 ESP PRIMARY .20 ESP-DILUTED .20 -----END PRIVACY-ENHANCED MESSAGE-----