10-Q

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C.  20549

FORM 10-Q

(X) QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15 (d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly (thirteen weeks) period ended March 1, 2013

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.)
One Golden Flake Drive
Birmingham, Alabama	35205
(Address of Principle Executive Offices)	(Zip Code)

(205) 458-7316

(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 by check mark whether the registrant has submitted electronically and posted on its corporate Web site, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files).Yes (X) No (  )

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, or a smaller reporting company (as defined in Rule 12b-2 of the Act). (Check one):

Large accelerated filer Accelerated filer Non-accelerated filer Smaller reporting company X

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes (  )  No (X)

Indicate the number of shares outstanding of each of the issuer’s classes of common stock, as of March 29, 2013.

	Outstanding at
Class	March 29, 2013
Common Stock, Par Value $0.66 2/3	11,732,632

EXCHANGE ACT REPORTS AVAILABLE ON COMPANY WEBSITE

Under “SEC Filings” on the “Financial” page of the Company’s website located at www.goldenflake.com, links to the following filings are made available as soon as reasonably practicable after they are electronically filed with or furnished to the Securities and Exchange Commission (the “SEC”)”  the Company’s Annual Report on Form 10-K, Quarterly Reports on Form 10-Q, Current Reports on Form 8-K, Proxy Statement on Schedule 14A related to the Company’s Annual Shareholders Meeting, and any amendments to those reports or statements filed or furnished pursuant to Section 13(a) or 15(d) of the Securities Act of 1934.  You may also read and copy any materials we file with the SEC at the SEC’s Public Reference Room at 100 F Street, NE, Washington, DC 20549.  You may obtain information on the operation of the Public Reference Room by calling the SEC at 1-800-SEC-0330.  The SEC also maintains an Internet website located at http://www.sec.gov that contains the information we file or furnish electronically with the SEC.

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	GOLDEN ENTERPRISES, INC.
	INDEX
Part I.	FINANCIAL INFORMATION	Page No.
Item 1	Financial Statements (unaudited)
	Condensed Consolidated Balance Sheets March 1, 2013 (unaudited) and June 1, 2012	4
	Condensed Consolidated Statements of Income (unaudited) Thirteen Weeks and Thirty-Nine Weeks Ended March 1, 2013 and March 2, 2012	5
	Condensed Consolidated Statements of Cash Flows (unaudited) Thirty-Nine Weeks Ended March 1, 2013 and March 2, 2012	6
	Notes to Condensed Consolidated Financial Statements (unaudited)	8
	Report of Independent Registered Public Accounting Firm	10
Item 2	Management’s Discussion and Analysis of Financial Condition and Results of Operations	11
Item 3	Quantitative and Qualitative Disclosure About Market Risk	14
Item 4	Controls and Procedures	14
Part II.	OTHER INFORMATION	14
Item 1	Legal Proceedings	14
Item 1A	Risk Factors	14
Item 2	Unregistered Sales of Equity Securities and Use of Proceeds	15
Item 3	Defaults Upon Senior Securities	15
Item 4	Mine Safety Disclosures	15
Item 5	Other Information	15
Item 6	Exhibits	16

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PART I.  FINANCIAL INFORMATION
ITEM 1. FINANCIAL STATEMENTS
GOLDEN ENTERPRISES, INC. AND SUBSIDIARY
CONDENSED CONSOLIDATED BALANCE SHEETS
	(Unaudited)			(Audited)
	March 1,			June 1,
	2013			2012
ASSETS
CURRENT ASSETS
Cash and cash equivalents	$	782,959		$	1,893,816
Receivables, net		10,559,757			10,566,073
Inventories:
Raw materials and supplies		1,913,607			1,693,629
Finished goods		3,498,367			3,463,169
		5,411,974			5,156,798
Prepaid expenses		2,078,632			1,754,874
Accrued income taxes		-			59,894
Deferred income taxes		615,182			615,182
Total current assets		19,448,504			20,046,637
Property, plant and equipment, net		26,228,624			26,497,590
Other assets		2,332,749			2,209,399
Total	$	48,009,877		$	48,753,626
LIABILITIES AND STOCKHOLDER'S EQUITY
CURRENT LIABILITIES
Checks outstanding in excess of bank balances	$	1,626,176		$	1,710,417
Accounts payable		4,260,373			6,025,465
Accrued income taxes		510,449			-
Current portion of long-term debt		393,052			357,921
Other accrued expenses		4,496,318			4,472,079
Salary continuation plan		192,768			181,578
Line of credit outstanding		1,736,955			1,293,698
Total current liabilities		13,216,091			14,041,158
LONG-TERM LIABILITIES
Notes payable - bank, non-current		5,404,943			5,707,062
Salary continuation plan		1,003,818			1,097,655
Deferred income taxes		3,509,305			3,509,305
Total long-term liabilities		9,918,066			10,314,022
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		6,497,954			6,497,954
Retained earnings		20,091,190			19,607,056
		35,808,339			35,324,205
Less:  Cost of common shares in treasury (2,096,161 shares at March 1, 2013
and 2,094,161 shares at June 1, 2012)		(10,932,619	)		(10,925,759	)
Total stockholder's equity		24,875,720			24,398,446
Total	$	48,009,877		$	48,753,626
See Accompanying Notes to Condensed Consolidated Financial Statements

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GOLDEN ENTERPRISES, INC. AND SUDSIDIARY

CONDENSED CONSOLIDATED STATEMENTS OF INCOME (UNAUDITED)

	Thirteen			Thirteen			Thirty-Nine			Thirty-Nine
	Weeks			Weeks			Weeks			Weeks
	Ended			Ended			Ended			Ended
	March 1, 2013			March 2, 2012			March 1, 2013			March 2, 2012
Net sales	$	33,641,238		$	34,429,717		$	101,533,313		$	100,905,570
Cost of sales		17,419,327			17,902,409			52,139,342			52,622,503
Gross margin		16,221,911			16,527,308			49,393,971			48,283,067
Selling, general and administrative expenses		15,345,178			15,564,283			46,425,735			45,482,908
Operating income		876,733			963,025			2,968,236			2,800,159
Other income (expenses):
Gain on sale of assets		5,531			44,450			55,940			136,835
Interest expense		(67,673	)		(70,313	)		(183,924	)		(218,876	)
Other income		35,809			22,522			79,442			88,365
Total other income (expenses)		(26,333	)		(3,341	)		(48,542	)		6,324
Income before income taxes		850,400			959,684			2,919,694			2,806,483
Income  taxes		378,012			366,724			1,334,913			1,061,867
Net income	$	472,388		$	592,960		$	1,584,781		$	1,744,616
PER SHARE OF COMMON STOCK
Basic and Diluted earnings	$	0.04		$	0.05		$	0.14		$	0.15
Weighted average number of common
stock share outstanding:
Basic and Diluted		11,732,632			11,734,632			11,733,775			11,734,632
Cash dividends paid per share of
common stock	$	0.0313		$	0.0313		$	0.0938		$	0.9380

See Accompanying Notes to Condensed Consolidated Financial Statements

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GOLDEN ENTERPRISES, INC. AND SUBSIDIARY
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED)
	Thirty-Nine			Thirty-Nine
	Weeks Ended			Weeks Ended
	March 1, 2013			March 2, 2012
CASH FLOWS FROM OPERATING ACTIVITIES
Cash received from customers	$	101,539,629		$	100,279,095
Miscellaneous income		79,442			88,365
Cash paid to suppliers and employees		(52,223,815	)		(51,790,737	)
Cash paid for operating expenses		(46,350,384	)		(45,384,829	)
Income taxes paid		(764,570	)		(309,108	)
Interest expenses paid		(183,923	)		(218,876	)
Net cash provided by operating activities		2,096,379			2,663,910
CASH FLOWS FROM INVESTING ACTIVITIES
Purchase of property, plant and equipment		(2,261,171	)		(3,423,624	)
Proceeds from sale of property, plant and equipment		69,415			231,177
Net cash used in investing activities		(2,191,756	)		(3,192,447	)
CASH FLOWS FROM FINANCING ACTIVITIES
Debt proceeds		28,883,232			27,204,764
Debt repayments		(28,706,964	)		(27,285,054	)
Change in checks outstanding in excess of bank
balances		(84,241	)		463,130
Cash dividends paid		(1,100,647	)		(1,100,124	)
Purchase of treasury shares		(6,860	)		-
Net cash used in financing activities		(1,015,480	)		(717,284	)
Net change in cash and cash equivalents		(1,110,857	)		(1,245,821	)
Cash and cash equivalents at beginning of period		1,893,816			2,721,638
Cash and cash equivalents at end of period	$	782,959		$	1,475,817

See Accompanying Notes to Condensed Consolidated Financial Statements

6

GOLDEN ENTERPRISES, INC. AND SUBSIDIARY
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED) - CONTINUED
RECONCILIATION OF NET INCOME TO NET CASH FROM OPERATING ACTIVITIES
	Thirty-Nine			Thirty-Nine
	Weeks Ended			Weeks Ended
	March 1, 2013			March 2, 2012
Net Income	$	1,584,781		$	1,744,616
Adjustments to reconcile net income to net cash provided by
operating activities:
Depreciation and amortization		2,516,662			2,463,063
Gain on sale of property and equipment		(55,940	)		(136,835	)
Changes in operating assets and liabilities:
Change in receivables - net		6,316			(626,475	)
Change in inventories		(255,176	)		(330,131	)
Change in prepaid expenses		(323,758	)		(344,887	)
Change in other assets		(123,350	)		92,600
Change in accounts payable		(1,765,092	)		(707,816	)
Change in accrued expenses		24,239			(166,587	)
Change in salary continuation		(82,647	)		(76,397	)
Change in accrued income taxes		570,344			752,759
Net cash provided by operating activities	$	2,096,379		$	2,663,910

See Accompanying Notes to Condensed Consolidated Financial Statements

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GOLDEN ENTERPRISES, INC. AND SUBSIDIARY

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Unaudited)

1.   The accompanying unaudited condensed consolidated financial statements of Golden Enterprises, Inc. (the “Company”) have been prepared in accordance with accounting principles generally accepted in the United States of America (GAAP) for interim financial information and with the instructions to Form 10-Q and Article 10 to Regulation S-X.  Accordingly, they do not include all information and footnotes required by GAAP for complete financial statements.  In the opinion of management, all adjustments (consisting only of normal, recurring accruals) necessary for a fair presentation have been included.  For further information, refer to the consolidated financial statements and footnotes included in the Company’s Annual Report on Form 10-K for year ended June 1, 2012 which can be found on our website at www.goldenflake.com/financial.html.

2.   The consolidated results of operations for the thirty-nine weeks ended March 1, 2013 are not necessarily indicative of the results to be expected for the fifty-two week fiscal year ending May 31, 2013.

3.   The following tables summarize the prepaid assets accounts at March 1, 2013 and June 1, 2012.

	March 1, 2013		June 1, 2012
Truck shop supplies	$	476,146	$	576,673
Insurance deposit		82,959		82,959
Prepaid marketplace spending		203,659		227,382
Deferred advertising fees		394,551		-
Prepaid insurance		439,323		159,941
Prepaid taxes/licenses		129,483		168,110
Prepaid dues/supplies		234,101		499,905
Other		118,410		39,904
	$	2,078,632	$	1,754,874

4.   The principal raw materials used in the manufacture of the Company’s snack food products are potatoes, corn, pork skin pellets, vegetable oils, and seasoning.  The principal supplies used are flexible film, cartons, trays, boxes, and bags.  These raw materials and supplies are generally available in adequate quantities in the open market from sources in the United States and are generally contracted up to a year in advance.

5.   Inventories are stated at the lower of cost or market. Cost is computed on the first-in, first-out method.

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6.   The Company has a letter of credit with an outstanding amount of $1,900,000 outstanding at March 1, 2013 compared to $2,000,000 outstanding at March 1, 2012. The letter of credit supports the Company’s commercial self-insurance program.

7.   The Company has a line-of-credit agreement with a local bank that permits borrowing up to $3,000,000. The line-of-credit is subject to the Company’s continued credit worthiness and compliance with the terms and conditions of the loan agreement. The Company’s line-of-credit debt as of March 1, 2013 was $1,736,955 with an interest rate of 3.50%, leaving the Company with $1,263,045 of credit availability. The Company’s line-of-credit debt as of June 1, 2012 was $1,293,698 with an interest rate of 3.50%, leaving the Company with $1,706,302 of credit availability.

8.   The Company has a note payable with a balance of $5,797,995 as of March 1, 2013.  The loan was established as a construction loan in March 2009 to help fund the construction of a process water treatment facility.  In September 2009, the note converted to a 10-year fixed-rate note at 4.25% for $4,000,000.  In March 2011, the loan was modified by taking the remaining balance of $3,532,700 and adding another $2,900,000 to finance the purchase and implementation of a new Enterprise Resource Planning computer software system.  At that time, the interest rate on the loan was adjusted to 3.52% and the terms were re-established at 15 years for the repayment of the loan.  The Company has been making monthly payments on the note and intends to repay it at the earliest practicable date, as there are no prepayment penalties.

9.   The Company’s financial instruments that are exposed to concentrations of credit risk consist primarily of cash equivalents and trade receivables.   The Company maintains deposit relationships with high credit quality financial institutions.  The Company’s trade receivables result primarily from its snack food operations and reflect a broad customer base, primarily large grocery store chains located in the Southeastern United States.  The Company routinely assesses the financial strength of its customers.  As a consequence, concentrations of credit risk are limited.

9

REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM

We have reviewed the accompanying condensed consolidated balance sheet of Golden Enterprises, Inc. and subsidiary as of March 1, 2013, and the related condensed consolidated statements of income for the thirteen week and thirty-nine week periods ended March 1, 2013 and March 2, 2012, and the related condensed statements of cash flows for the thirty-nine week periods ending March 1, 2013 and March 2, 2012.  These financial statements are the responsibility of the Company’s management.

We conducted our review in accordance with standards established by the Public Company Accounting Oversight Board (United States).  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 the standards of the Public Company Accounting Oversight Board, the objective of which is the expression 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 accounting principles generally accepted in the United States of America.

We previously audited in accordance with the standards of the Public Company Accounting Oversight Board, the consolidated balance sheet as of June 1, 2012 and the related consolidated statements of income, changes in stockholders’ equity and cash flows for the fiscal year then ended (not presented herein), and in our report dated August 2, 2012 we expressed an unqualified opinion on those consolidated financial statements. In our opinion, the information set forth in the accompanying condensed consolidated balance sheet as of June 1, 2012, is fairly stated in all material respects in relation to the consolidated balance sheet from which it has been derived.

DUDLEY, HOPTON-JONES, SIMS & FREEMAN PLLP

Birmingham, Alabama

April 4, 2013

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ITEM 2

MANAGEMENT’S DISCUSSION AND ANALYSIS OF

FINANCIAL CONDITION AND RESULTS OF OPERATIONS

Management’s discussion and analysis of our financial condition and results of operations are based upon the condensed consolidated financial statements, which have been prepared in accordance with accounting principles generally accepted in the United States.  This discussion should be read in conjunction with our recent SEC filings, including Form 10-K for the year ended June 1, 2012.  The preparation of these financial statements requires us to make estimates and judgments about future events that affect the reported amounts of assets, liabilities, revenues and expenses, and the related disclosures.  Future events and their effects cannot be determined with absolute certainty.  Therefore, management’s determination of estimates and judgments about the carrying values of assets and liabilities requires the exercise of judgment in the selection and application of assumptions based on various factors, including historical experience, current and expected economic conditions and other factors believed to be reasonable under the circumstances.  We routinely evaluate our estimates including those considered significant and discussed in detail in Form 10-K for the year ended June 1, 2012.  Actual results may differ from these estimates under different assumptions or conditions and such differences may be material.

Overview

The Company manufactures and distributes a full line of high quality salted snack items, such as potato chips, tortilla chips, corn chips, fried pork skins, baked and fried cheese curls, onion rings, puff corn, and crinkle cut fries.  The products are all packaged in flexible bags or other suitable wrapping material.  The Company also sells canned dips, pretzels, peanut butter crackers, cheese crackers, dried meat products, and nuts packaged by other manufacturers using the Golden Flake label.

No single product or product line accounts for more than 50% of the Company’s sales, which affords some protection against loss of volume due to a crop failure of major agricultural raw materials or failure to procure an adequate supply of pork skin pellets. Raw materials used in manufacturing and processing the Company’s snack food products are purchased on the open market and under contract through brokers and directly from growers.  A large part of the raw materials used by the Company consists of farm commodities which are subject to precipitous changes in supply and price.  Weather varies from season to season and directly affects both the quality and supply of farm commodities available.  The Company has no control of the agricultural aspects and its profits are affected accordingly.

The Company sells its products both through its own sales organization and independent distributors to commercial establishments that sell food products primarily in the Southeastern United States.  The products are distributed through the independent distributors and route representatives who are supplied with selling inventory by the Company’s trucking fleet.  All of the route representatives are employees of the Company and use the Company’s direct-store delivery system.

Liquidity and Capital Resources

At March 1, 2013 and June 1, 2012, working capital was $6,232,413 and $6,005,479, respectively.

The Company’s current ratio was 1.47 to 1.00 at March 1, 2013 compared to 1.43 to 1.00 at June 1, 2012.

11

Accounts Receivable and Allowance for Doubtful Accounts

At March 1, 2013 and June 1, 2012 the Company had accounts receivables in the amount of $10,559,757 and $10,566,073 respectively, net of an allowance for doubtful accounts of $70,000.

Other Commitments

Available cash, cash from operations and available credit under the line-of-credit are expected to be sufficient to meet anticipated cash expenditures and normal operating requirements for the foreseeable future.

Operating Results

For the thirteen weeks ended March 1, 2013, net sales decreased 2.3% from the comparable period in fiscal 2012. For the thirty-nine weeks ended March 1, 2013, net sales increased 0.6% from the comparable period in fiscal 2012.  This year’s third quarter cost of sales was 51.8% of net sales compared to 52.0% for last year’s third quarter.  This year’s cost of sales year to date was 51.4% of net sales compared to 52.2% for last year’s year to date.  This year’s third quarter, selling, general and administrative expenses were 45.6% of net sales compared to 45.2% for last year’s third quarter.  This year’s selling, general and administrative expenses year to date were 45.7% of net sales compared to 45.1% for last year’s year to date.

The following tables compare manufactured products to resale products:

Manufactured Products-Resale Products
	Thirteen Weeks Ended					Thirteen Weeks Ended
	March 1, 2013					March 2, 2012
Sales			%					%
Manufactured Products	$	24,643,951		73.3	%	$	26,887,219		78.1	%
Resale Products		8,997,287		26.7	%		7,542,498		21.9	%
Total	$	33,641,238		100.0	%	$	34,429,717		100.0	%
Gross Margin			%					%
Manufactured Products	$	12,212,771		49.6	%	$	13,960,128		51.9	%
Resale Products		4,009,140		44.6	%		2,567,180		34.0	%
Total	$	16,221,911		48.2	%	$	16,527,308		48.0	%
	Thirty-Nine Weeks Ended					Thirty-Nine Weeks Ended
	March 1, 2013					March 2, 2012
Sales			%					%
Manufactured Products	$	79,967,917		78.8	%	$	77,701,386		77.0	%
Resale Products		21,565,396		21.2	%		23,204,184		23.0	%
Total	$	101,533,313		100.0	%	$	100,905,570		100.0	%
Gross Margin			%					%
Manufactured Products	$	41,616,080		52.0	%	$	40,355,172		51.9	%
Resale Products		7,777,891		36.1	%		7,927,895		34.2	%
Total	$	49,393,971		48.6	%	$	48,283,067		47.8	%

12

The Company’s gain on sale of assets for the thirteen weeks ended March 1, 2013 in the amount of $5,531 was from the sale of used transportation equipment.

For last year’s thirteen weeks, the gain on sale of assets in the amount of $44,450 was from the sale of used transportation equipment.

The Company’s effective tax rate for the thirteen weeks was 44.5% compared to 38.2% for the last year’s thirteen weeks.  The Company’s effective tax rate for the thirty-nine weeks ended March 1, 2013 was 45.7% and 37.8% for the comparable period 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 cash equivalents and bank loans, fuel costs, and commodity prices affecting the cost of its raw materials.

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 and under contract through brokers or directly from growers.  Future contracts have been used occasionally to hedge immaterial amounts of commodity purchases, but none are presently being used.

Inflation

Certain costs and expenses of the Company are affected by inflation. The Company’s prices for its products over the past several years have remained relatively flat.  The Company will contend with the effect of further inflation to the extent possible through efficient purchasing, improved manufacturing methods, pricing, and by monitoring and controlling expenses.

Environmental Matters

Golden Flake’s waste water treatment plant is an environmentally-friendly way to dispose of process water at the Birmingham plant.  The treatment plant has allowed Golden Flake to release the processing water into a neighboring creek which has improved the flow of water in the creek and has positively impacted the environment in the area surrounding the plant.  This treatment plant has also helped to reduce expenses associated with sewer charges by the elimination of the disposal of process water through the public sewer system.

Subsequent Event

Not applicable.

Forward-Looking Statements

This discussion contains certain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995.  Actual results could differ materially from those forward-looking statements.  Factors that may cause actual results to differ materially include, but are not limited to, price competition, industry consolidation, raw material costs, and effectiveness of sales and marketing activities, as described in the Company’s filings with the Securities and Exchange Commission.

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ITEM 3

QUANTITATIVE AND QUALITATIVE

DISCLOSURE ABOUT MARKET RISK

Pursuant to Item 305(e) of Regulation S-K (Section 229.305(e)) the Company is not required to provide the Information under this item, as it is a “Smaller Reporting Company” as defined by Rule 229.10(f)(1).

ITEM 4

CONTROLS AND PROCEDURES

The Company’s management, with the participation of the Company’s Chief Executive Officer and Chief Financial Officer, has evaluated the effectiveness of the Company’s disclosure controls and procedures (as such term is defined in Rules 13a-15(e) and 15d-15(e) under the Securities Exchange Act of 1934, as amended (the “Exchange Act”)), as of the end of the period covered by this report.  Any controls and procedures, no matter how well designed and operated can provide only reasonable assurance of achieving the desired control objectives.  Based on such evaluation, the Company’s Chief Executive Officer and Chief Financial Officer have concluded that, as of the end of such period, the Company’s disclosure controls and procedures provided reasonable assurance that the disclosure controls and procedures were effective in recording, processing, summarizing and reporting, on a timely basis, information required to be disclosed by the Company in the reports that it files or submits under the Exchange Act and in accumulating and communicating such information to management, including the Company’s Chief Executive Officer and Chief Financial Officer, as appropriate to allow timely decisions regarding required disclosure.

The Company’s management, with the participation of the Company’s Chief Executive Officer and Chief Financial Officer, conducted an evaluation of the Company’s internal control over financial reporting to determine whether any changes occurred during the Company’s third fiscal quarter ended March 1, 2013 that have materially affected, or are reasonably likely to materially affect, the Company’s internal control over financial reporting.  Based on that evaluation, there has been no such change during the period covered by this report.

PART II OTHER INFORMATION

ITEM 1

LEGAL PROCEEDINGS

There are no material pending legal proceedings against the Company or its subsidiary other than routine litigation incidental to the business of the Company and its subsidiary.

ITEM 1A

RISK FACTORS

As a “Smaller reporting company”, the Company is not required to provide the information under this item.

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ITEM 2

UNREGISTERED SALES OF EQUITY SECURITIES

AND USE OF PROCEEDS

The Company did not sell any equity securities during the period covered by this report.

Registrant Purchases of Equity Securities

The Company did not purchase any shares of treasury stock during the period covered by this report

ITEM 3

DEFAULTS UPON SENIOR SECURITIES

Not applicable.

ITEM 4

MINE SAFETY DISCLOSURES

Not applicable.

ITEM 5

OTHER INFORMATION

Not applicable.

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ITEM 6

EXHIBITS

(3) Articles of Incorporation and By-laws of Golden Enterprises, Inc.

3.1 Certificate of Incorporation of Golden Enterprises, Inc. (originally known as “Golden Flake, Inc.”) dated December 11, 1967 (incorporated by reference to Exhibit 3.1 to Golden Enterprises, Inc. May 31, 2004 Form 10-K filed with the Commission).

3.2 Certificate of Amendment of Certificate of Incorporation of Golden Enterprises, Inc. dated December 22, 1976 (incorporated by reference to Exhibit 3.2 to Golden Enterprises, Inc. May 31, 2004 Form 10-K filed with the Commission).

3.3 Certificate of Amendment of Certificate of Incorporation of Golden Enterprises, Inc. dated October 2, 1978 (incorporated by reference to Exhibit 3 to Golden Enterprises, Inc. May 31, 1979 Form 10-K filed with the Commission).

3.4 Certificate of Amendment of Certificate of Incorporation of Golden Enterprises, Inc. dated October 4, 1979 (incorporated by reference to Exhibit 3 to Golden Enterprises, Inc. May 31, 1980 Form 10-K filed with the Commission).

3.5 Certificate of Amendment of Certificate of Incorporation of Golden Enterprises, Inc. dated September 24, 1982 (incorporated by reference to Exhibit 3.1 to Golden Enterprises, Inc. May 31, 1983 Form 10-K filed with the Commission).

3.6 Certificate of Amendment of Certificate of Incorporation of Golden Enterprises, Inc. dated September 22, 1983 (incorporated by reference to Exhibit 19.1 to Golden Enterprises, Inc. Form 10-Q Report for the quarter ended November 30, 1983 filed with the Commission).

3.7 Certificate of Amendment of Certificate of Incorporation of Golden Enterprises. Inc. dated October 3, 1985 (incorporated by reference to Exhibit 19.1 to Golden Enterprises, inc. Form l0-Q Report for the quarter ended November 30, 1985 filed with the Commission).

3.8 Certificate of Amendment of Certificate of Incorporation of Golden Enterprises, Inc. dated September 23, 1987 (incorporated by reference to Exhibit 3.1 to Golden Enterprises, Inc. May 31, 1988 Form 10-K filed with the Commission).

3.9 By-Laws of Golden Enterprises, Inc. (incorporated by reference to Exhibit 3.4 to Golden Enterprises, Inc. May 31, 1988 Form 10-K filed with the Commission).

(10) Material Contracts.

10.1 A Form of Indemnity Agreement executed by and between Golden Enterprises, Inc. and Each of its Directors (incorporated by reference as Exhibit 19.1 to Golden Enterprises, Inc. Form 10-Q Report for the quarter ended November 30, 1987 filed with the Commission).

16

10.2 Amended and Restated Salary Continuation Plans for John S. Stein (incorporated by reference to Exhibit 19.1 to Golden Enterprises, Inc. May 31, 1990 Form 10-K filed with the Commission).

10.3 Indemnity Agreement executed by and between the Company and S. Wallace Nall, Jr. (incorporated by reference as Exhibit 19.4 to Golden Enterprises, Inc. May 31, 1991 Form 10-K filed with the Commission).

10.4 Salary ContinuationPlans - Retirement Disability and Death Benefits for F. Wayne Pate (incorporated by reference to Exhibit 19.1 to Golden Enterprises, Inc. May 31, 1992 Form 10-K filed with the Commission).

10.5 Indemnity Agreement executed by and between the Registrant and F. Wayne Pate (incorporated by reference as Exhibit 19.3 to Golden Enterprises, Inc. May 31, 1992 Form 10-K filed with the Commission).

10.9 Amendment to Salary Continuation Plans, Retirement and Disability for F. Wayne Pate dated April 9. 2002 (incorporated by reference to Exhibit 10.2 to Golden Enterprises, Inc. May 31, 2002 Form 10-K filed with the Commission).

10.10 Amendment to Salary Continuation Plans, Retirement and Disability for John S. Stein dated April 9, 2002 (incorporated by reference to Exhibit 10.3 to Golden Enterprises, Inc. May 31, 2002 Form 10-K filed with the Commission).

10.11 Amendment to Salary Continuation Plan, Death Benefits for John S. Stein dated April 9, 2002 (incorporated by reference to Exhibit 10.4 to Golden Enterprises, Inc. May 31, 2002 Form 10-K filed with the Commission).

10.12 Retirement and Consulting Agreement for John S. Stein dated April 9, 2002 (incorporated by reference to Exhibit 10.5 to Golden Enterprises, Inc. May 31, 2002 Form 10-K filed with the Commission).

10.13 Salary Continuation Plan for Mark W. McCutcheon dated May 15, 2002 (incorporated by reference to Exhibit 10.6 to Golden Enterprises, Inc. May 31, 2002 Form 10-K filed with the Commission).

10.14 Trust Under Salary Continuation Plan for Mark W. McCutcheon dated May 15, 2002 (incorporated by reference to Exhibit 10.7 to Golden Enterprises, Inc. May 31, 2002 Form 10-K filed with the Commission).

10.20 Amendment to Salary Continuation Plan for Mark W. McCutcheon dated December 30, 2008 (incorporated by reference to Exhibit 10.20 Golden Enterprises, Inc. February 27, 2009 Form 10-Q filed with the Commission).

10.24 A Form of Indemnity Agreement to be executed by and between Golden Enterprises, Inc. and the following directors: Mark W. McCutcheon, Joann F. Bashinsky, John S. Stein, III, William B. Morton, Jr., Paul R. Bates and David A. Jones (incorporated by reference to Exhibit 10.24 to Golden Enterprises, Inc. January 13, 2011 Form 10-Q filed with the Commission).

17

14.1 Golden Enterprises, Inc.’s Code of Conduct and Ethics adopted by the Board of Directors on April 8, 2004 (incorporated by reference to Exhibit 14.1 to Golden Enterprises, Inc. May 31, 2004 Form 10-K with the Commission).

21 Subsidiaries of the Registrant (incorporated by reference to Exhibit 21 to Golden Enterprises, Inc. May 31, 2004 Form 10-K filed with the Commission)

(31) Certifications

31.1 Certification of Chief Executive Officer pursuant to Section 302 of the Sarbanes Oxley Act of 2002.

31.2 Certification of Chief Financial Officer pursuant to Section 302 of the Sarbanes Oxley Act of 2002.

32.1 Certification of Chief Executive Officer pursuant to Section 906 of the Sarbanes Oxley Act of 2002.

32.2 Certification of Chief Financial Officer pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.

(99) Additional Exhibits

99.1 A copy of excerpts of the Last Will and Testament and Codicils thereto of Sloan Y. Bashinsky, Sr. and of the SYB Common Stock Trust created by Sloan Y. Bashinsky, Sr. providing for the creation of a Voting Committee to vote the shares of common stock of Golden Enterprises, Inc. held by SYB, Inc. and the Estate/Testamentary Trust of Sloan Y. Bashinsky, Sr. (Incorporated by reference to Exhibit 99.1 to Golden Enterprises, Inc. May 31, 2005 Form 10-k filed with the Commission).

101.INS XBRL Instance Document

101.SCH XBRL Taxonomy Extension Schema Document

101.CAL XBRL Taxonomy Extension Calculation Linkbase Document

101.DEF XBRL Taxonomy Extension Definition Linkbase Document

101.LAB XBRL Taxonomy Extension Label Linkbase Document

101.PRE XBRL Taxonomy Extension Presentation Linkbase Document

18

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: April 5, 2013	/s/ Mark W. McCutcheon
	Mark W. McCutcheon
	Chairman of the Board,
	President and
	Chief Executive Officer
Dated:April 5, 2013	/s/ Patty Townsend
	Patty Townsend
	Vice-President and
	Chief Financial Officer
	(Principal Accounting Officer)

19

EX-31.1

EXHIBIT 31.1

CERTIFICATION BY MARK W. MCCUTCHEON PURSUANT TO

SECTION 302 OF THE SARBANES-OXLEY ACT OF 2002

I, Mark W. McCutcheon, certify that:

1. I have reviewed this Quarterly Report on Form 10-Q of Golden Enterprises, Inc. for the third quarter ended March 1, 2013;

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4. The Registrant’s other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-5(f) for the registrant and have:

a)   Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the Registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

b)   Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

c)   Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

d)   Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and

5. The Registrant’s other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions):

a)   All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the Registrant’s ability to record, process, summarize, and report financial information; and

b)   Any fraud, whether or not material, that involves management or other employees who have a significant role in the Registrant’s internal control over financial reporting.

Dated: April 5, 2013

/s/ Mark W. McCutcheon

Mark W. McCutcheon

Chairman of the Board,

President and Chief Executive Officer

EX-31.2

EXHIBIT 31.2

CERTIFICATION BY PATTY TOWNSEND PURSUANT TO

SECTION 302 OF THE SARBANES-OXLEY ACT OF 2002

I, Patty Townsend, certify that:

1. I have reviewed this Quarterly Report on Form 10-Q of Golden Enterprises, Inc. for the third quarter ended March 1, 2013;

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4. The registrant’s other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-5(f) for the registrant and have:

a)   Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the Registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

b)   Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

c)   Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

d)   Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the Registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and

5. The registrant’s other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions):

a)   All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the Registrant’s ability to record, process, summarize, and report financial information; and

b)   Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

Dated:  April 5, 2013

/s/ Patty Townsend

Patty Townsend

Vice-President and Chief Financial Officer

EX-32.1

EXHIBIT 32.1

CERTIFICATION PURSUANT TO 18 U.S.C. SECTION 1350

AS ADOPTED PURSUANT TO SECTION 906

OF THE SARBANES-OXLEY ACT OF 2002

In connection with the Quarterly Report of Golden Enterprises, Inc. (the “Company”) on Form 10-Q for the third quarter ended March 1, 2013, as filed with the Securities and Exchange Commission on the date hereof (the “Report”), I, Mark W. McCutcheon, Chief Executive Officer of the Company, certify, pursuant to 18 U.S.C. ' 1350, as adopted pursuant to ' 906 of the Sarbanes-Oxley Act of 2002, that, to the best of my knowledge:

(1) The Report fully complies with the requirements of section 13(a) or 15(d) of the Securities Exchange Act of 1934; and

(2) The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.

Dated:  April 5, 2013

/s/ Mark W. McCutcheon

Mark W. McCutcheon

Chairman of the Board,

President and Chief Executive Officer

A signed original of this written statement required by Section 906 has been provided to Golden Enterprises, Inc. and will be retained by Golden Enterprises, Inc. and furnished to the Securities and Exchange Commission, or its staff, upon request.

EX-32.2

EXHIBIT 32.2

CERTIFICATION PURSUANT TO 18 U.S.C. SECTION 1350

AS ADOPTED PURSUANT TO SECTION 906

OF THE SARBANES-OXLEY ACT OF 2002

In connection with the Quarterly Report of Golden Enterprises, Inc. (the “Company”) on Form 10-Q for the third quarter ended March 1, 2013, as filed with the Securities and Exchange Commission on the date hereof (the “Report”), I, Patty Townsend, Chief Financial Officer of the Company, certify, pursuant to 18 U.S.C. ' 1350, as adopted pursuant to ' 906 of the Sarbanes-Oxley Act of 2002, that, to the best of my knowledge:

(1) The Report fully complies with the requirements of section 13(a) or 15(d) of the Securities Exchange Act of 1934; and

(2) The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.

Dated:  April 5, 2013

/s/ Patty Townsend

Patty Townsend

Vice-President and Chief Financial Officer

A signed original of this written statement required by Section 906 has been provided to Golden Enterprises, Inc. and will be retained by Golden Enterprises, Inc. and furnished to the Securities and Exchange Commission, or its staff, upon request.

XML

Raw Materials and Supplies

9 Months Ended

Mar. 01, 2013

Raw Materials and Supplies

4.   The principal raw materials used in the manufacture of the Company’s snack food products are potatoes, corn, pork skin pellets, vegetable oils, and seasoning.  The principal supplies used are flexible film, cartons, trays, boxes, and bags.  These raw materials and supplies are generally available in adequate quantities in the open market from sources in the United States and are generally contracted up to a year in advance.

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Prepaid Assets

9 Months Ended

Mar. 01, 2013

Prepaid Assets

3.   The following tables summarize the prepaid assets accounts at March 1, 2013 and June 1, 2012.

	March 1, 2013		June 1, 2012
Truck shop supplies	$	476,146	$	576,673
Insurance deposit		82,959		82,959
Prepaid marketplace spending		203,659		227,382
Deferred advertising fees		394,551		-
Prepaid insurance		439,323		159,941
Prepaid taxes/licenses		129,483		168,110
Prepaid dues/supplies		234,101		499,905
Other		118,410		39,904
	$	2,078,632	$	1,754,874

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CONDENSED CONSOLIDATED BALANCE SHEETS (USD $)	Mar. 01, 2013	Jun. 01, 2012
CURRENT ASSETS
Cash and cash equivalents	$ 782,959	$ 1,893,816
Receivables, net	10,559,757	10,566,073
Inventories:
Raw materials and supplies	1,913,607	1,693,629
Finished goods	3,498,367	3,463,169
Inventories, net	5,411,974	5,156,798
Prepaid expenses	2,078,632	1,754,874
Accrued income taxes		59,894
Deferred income taxes	615,182	615,182
Total current assets	19,448,504	20,046,637
Property, plant and equipment, net	26,228,624	26,497,590
Other assets	2,332,749	2,209,399
Total	48,009,877	48,753,626
CURRENT LIABILITIES
Checks outstanding in excess of bank balances	1,626,176	1,710,417
Accounts payable	4,260,373	6,025,465
Accrued income taxes	510,449
Current portion of long-term debt	393,052	357,921
Other accrued expenses	4,496,318	4,472,079
Salary continuation plan	192,768	181,578
Line of credit outstanding	1,736,955	1,293,698
Total current liabilities	13,216,091	14,041,158
LONG-TERM LIABILITIES
Notes payable - bank, non-current	5,404,943	5,707,062
Salary continuation plan	1,003,818	1,097,655
Deferred income taxes	3,509,305	3,509,305
Total long-term liabilities	9,918,066	10,314,022
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	6,497,954	6,497,954
Retained earnings	20,091,190	19,607,056
Stockholder's equity before treasury stock	35,808,339	35,324,205
Less: Cost of common shares in treasury (2,096,161 shares at March 1, 2013 and 2,094,161 shares at June 1, 2012)	(10,932,619)	(10,925,759)
Total stockholder's equity	24,875,720	24,398,446
Total	$ 48,009,877	$ 48,753,626

XML

Basis of Accounting

9 Months Ended

Mar. 01, 2013

Basis of Accounting

1.   The accompanying unaudited condensed consolidated financial statements of Golden Enterprises, Inc. (the “Company”) have been prepared in accordance with accounting principles generally accepted in the United States of America (GAAP) for interim financial information and with the instructions to Form 10-Q and Article 10 to Regulation S-X.  Accordingly, they do not include all information and footnotes required by GAAP for complete financial statements.  In the opinion of management, all adjustments (consisting only of normal, recurring accruals) necessary for a fair presentation have been included.  For further information, refer to the consolidated financial statements and footnotes included in the Company’s Annual Report on Form 10-K for year ended June 1, 2012 which can be found on our website at www.goldenflake.com/financial.html.

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Consolidated Results of Operations

9 Months Ended

Mar. 01, 2013

Consolidated Results of Operations

2.   The consolidated results of operations for the thirty-nine weeks ended March 1, 2013 are not necessarily indicative of the results to be expected for the fifty-two week fiscal year ending May 31, 2013.

XML

CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) (USD $)	Mar. 01, 2013	Jun. 01, 2012
Common stock, par value	$ 0.667	$ 0.667
Common stock, shares authorized	35,000,000	35,000,000
Common stock, shares issued	13,828,793	13,828,793
Treasury stock, shares	2,096,161	2,094,161

XML

Letters of Credit (Detail) (USD $)	Mar. 01, 2013	Mar. 01, 2012
Line of Credit Facility [Line Items]
Letter of credit outstanding	$ 1,900,000	$ 2,000,000

XML

Document and Entity Information	9 Months Ended
	Mar. 01, 2013	Mar. 29, 2013
Document Information [Line Items]
Document Type	10-Q
Amendment Flag	false
Document Period End Date	Mar. 01, 2013
Document Fiscal Year Focus	2013
Document Fiscal Period Focus	Q3
Trading Symbol	GLDC
Entity Registrant Name	GOLDEN ENTERPRISES INC.
Entity Central Index Key	0000042228
Current Fiscal Year End Date	--05-31
Entity Filer Category	Smaller Reporting Company
Entity Common Stock, Shares Outstanding		11,732,632

XML

Line-of-Credit (Detail) (USD $)	Mar. 01, 2013	Jun. 01, 2012
Line of Credit Facility [Line Items]
Line-of-credit agreement, maximum borrowing capacity	$ 3,000,000	$ 3,000,000
Line-of-credit, outstanding debt	1,736,955	1,293,698
Line-of-credit, interest rate	3.50%	3.50%
Line-of-credit, available credit	$ 1,263,045	$ 1,706,302

XML

CONDENSED CONSOLIDATED STATEMENTS OF INCOME (UNAUDITED) (USD $)	3 Months Ended		9 Months Ended
	Mar. 01, 2013	Mar. 02, 2012	Mar. 01, 2013	Mar. 02, 2012
Net sales	$ 33,641,238	$ 34,429,717	$ 101,533,313	$ 100,905,570
Cost of sales	17,419,327	17,902,409	52,139,342	52,622,503
Gross margin	16,221,911	16,527,308	49,393,971	48,283,067
Selling, general and administrative expenses	15,345,178	15,564,283	46,425,735	45,482,908
Operating income	876,733	963,025	2,968,236	2,800,159
Other income (expenses):
Gain on sale of assets	5,531	44,450	55,940	136,835
Interest expense	(67,673)	(70,313)	(183,924)	(218,876)
Other income	35,809	22,522	79,442	88,365
Total other income (expenses)	(26,333)	(3,341)	(48,542)	6,324
Income before income taxes	850,400	959,684	2,919,694	2,806,483
Income taxes	378,012	366,724	1,334,913	1,061,867
Net income	$ 472,388	$ 592,960	$ 1,584,781	$ 1,744,616
PER SHARE OF COMMON STOCK
Basic and Diluted earnings	$ 0.04	$ 0.05	$ 0.14	$ 0.15
Weighted average number of common stock share outstanding:
Basic and Diluted	11,732,632	11,734,632	11,733,775	11,734,632
Cash dividends paid per share of common stock	$ 0.0313	$ 0.0313	$ 0.0938	$ 0.9380

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Line-of-Credit Agreement

9 Months Ended

Mar. 01, 2013

Line-of-Credit Agreement

7.   The Company has a line-of-credit agreement with a local bank that permits borrowing up to $3,000,000. The line-of-credit is subject to the Company’s continued credit worthiness and compliance with the terms and conditions of the loan agreement. The Company’s line-of-credit debt as of March 1, 2013 was $1,736,955 with an interest rate of 3.50%, leaving the Company with $1,263,045 of credit availability. The Company’s line-of-credit debt as of June 1, 2012 was $1,293,698 with an interest rate of 3.50%, leaving the Company with $1,706,302 of credit availability.

XML

Letter of Credit

9 Months Ended

Mar. 01, 2013

Letter of Credit

6.  

The Company has a letter of credit with an outstanding amount of $1,900,000 outstanding at March 1, 2013 compared to $2,000,000 outstanding at March 1, 2012. The letter of credit supports the Company’s commercial self-insurance program.

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Notes Payable (Detail) (USD $)	1 Months Ended
	Mar. 31, 2011	Sep. 30, 2009	Mar. 01, 2013
Debt Instrument [Line Items]
Notes payable	$ 3,532,700		$ 5,797,995
Equipment note, term	15 years	10 years
Equipment note, interest rate	3.52%	4.25%
Equipment note, face amount	$ 2,900,000	$ 4,000,000

XML

Prepaid Assets (Tables)

9 Months Ended

Mar. 01, 2013

Schedule of Prepaid Assets

3.   The following tables summarize the prepaid assets accounts at March 1, 2013 and June 1, 2012.

	March 1, 2013		June 1, 2012
Truck shop supplies	$	476,146	$	576,673
Insurance deposit		82,959		82,959
Prepaid marketplace spending		203,659		227,382
Deferred advertising fees		394,551		-
Prepaid insurance		439,323		159,941
Prepaid taxes/licenses		129,483		168,110
Prepaid dues/supplies		234,101		499,905
Other		118,410		39,904
	$	2,078,632	$	1,754,874

XML

Notes Payable

9 Months Ended

Mar. 01, 2013

Notes Payable

8.   The Company has a note payable with a balance of $5,797,995 as of March 1, 2013.  The loan was established as a construction loan in March 2009 to help fund the construction of a process water treatment facility.  In September 2009, the note converted to a 10-year fixed-rate note at 4.25% for $4,000,000.  In March 2011, the loan was modified by taking the remaining balance of $3,532,700 and adding another $2,900,000 to finance the purchase and implementation of a new Enterprise Resource Planning computer software system.  At that time, the interest rate on the loan was adjusted to 3.52% and the terms were re-established at 15 years for the repayment of the loan.  The Company has been making monthly payments on the note and intends to repay it at the earliest practicable date, as there are no prepayment penalties.

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Concentration of Credit Risk

9 Months Ended

Mar. 01, 2013

Concentration of Credit Risk

9.   The Company’s financial instruments that are exposed to concentrations of credit risk consist primarily of cash equivalents and trade receivables.   The Company maintains deposit relationships with high credit quality financial institutions.  The Company’s trade receivables result primarily from its snack food operations and reflect a broad customer base, primarily large grocery store chains located in the Southeastern United States.  The Company routinely assesses the financial strength of its customers.  As a consequence, concentrations of credit risk are limited.

XML

Prepaid Expenses (Detail) (USD $)	Mar. 01, 2013	Jun. 01, 2012
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Line Items]
Truck shop supplies	$ 476,146	$ 576,673
Insurance deposit	82,959	82,959
Prepaid marketplace spending	203,659	227,382
Deferred advertising fees	394,551
Prepaid insurance	439,323	159,941
Prepaid taxes/licenses	129,483	168,110
Prepaid dues/supplies	234,101	499,905
Other	118,410	39,904
Prepaid assets	$ 2,078,632	$ 1,754,874

XML

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED) (USD $)	9 Months Ended
	Mar. 01, 2013	Mar. 02, 2012
CASH FLOWS FROM OPERATING ACTIVITIES
Cash received from customers	$ 101,539,629	$ 100,279,095
Miscellaneous income	79,442	88,365
Cash paid to suppliers and employees	(52,223,815)	(51,790,737)
Cash paid for operating expenses	(46,350,384)	(45,384,829)
Income taxes paid	(764,570)	(309,108)
Interest expenses paid	(183,923)	(218,876)
Net cash provided by operating activities	2,096,379	2,663,910
CASH FLOWS FROM INVESTING ACTIVITIES
Purchase of property, plant and equipment	(2,261,171)	(3,423,624)
Proceeds from sale of property, plant and equipment	69,415	231,177
Net cash used in investing activities	(2,191,756)	(3,192,447)
CASH FLOWS FROM FINANCING ACTIVITIES
Debt proceeds	28,883,232	27,204,764
Debt repayments	(28,706,964)	(27,285,054)
Change in checks outstanding in excess of bank balances	(84,241)	463,130
Cash dividends paid	(1,100,647)	(1,100,124)
Purchase of treasury shares	(6,860)
Net cash used in financing activities	(1,015,480)	(717,284)
Net change in cash and cash equivalents	(1,110,857)	(1,245,821)
Cash and cash equivalents at beginning of period	1,893,816	2,721,638
Cash and cash equivalents at end of period	782,959	1,475,817
RECONCILIATION OF NET INCOME TO NET CASH PROVIDED BY OPERATING ACTIVITIES
Net Income	1,584,781	1,744,616
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization	2,516,662	2,463,063
Gain on sale of property and equipment	(55,940)	(136,835)
Changes in operating assets and liabilities:
Change in receivables - net	6,316	(626,475)
Change in inventories	(255,176)	(330,131)
Change in prepaid expenses	(323,758)	(344,887)
Change in other assets	(123,350)	92,600
Change in accounts payable	(1,765,092)	(707,816)
Change in accrued expenses	24,239	(166,587)
Change in salary continuation	(82,647)	(76,397)
Change in accrued income taxes	570,344	752,759
Net cash provided by operating activities	$ 2,096,379	$ 2,663,910

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Inventory Valuation

9 Months Ended

Mar. 01, 2013

Inventory Valuation

5.   Inventories are stated at the lower of cost or market. Cost is computed on the first-in, first-out method.