UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 10-Q
Quarterly Report Pursuant to Section 13 or 15(d) of the
Securities Exchange Act of 1934
Quarter Ended October 1, 1995 Commission file Number 0-1830
BOWL AMERICA INCORPORATED
(Exact name of registrant as specified in its charter.)
MARYLAND 54-0646173
(State of Incorporation) (I.R.S. Employer Identification No.)
6446 Edsall Road, Alexandria, Virginia 22312
(Address of principal executive offices) (Zip Code)
(703)941-6300
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 the latest practical date:
Shares Outstanding at
October 29, 1995
Class A Common Stock, 4,206,510
$.10 par value
Class B Common Stock 1,536,146
$.10 par value
<PAGE>
BOWL AMERICA INCORPORATED AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF EARNINGS
PART I - FINANCIAL INFORMATION
<TABLE>
<CAPTION>
Thirteen Weeks Ended
October 1, October 2,
1995 1994
_______________________
<S> <C> <C>
Operating Revenues
Bowling and other $3,823,858 $4,005,669
Food and merchandise sales 1,843,955 1,725,283
_________ _________
5,667,813 5,730,952
Operating Expenses
Compensation and benefits 3,032,256 2,978,717
Cost of bowling and other 1,683,338 1,786,396
Cost of food and mdse sales 609,568 536,624
Depreciation and
amortization 491,583 476,718
General and administrative 199,895 228,992
_________ _________
6,016,640 6,007,447
Operating Loss (348,827) (276,495)
Interest and dividend
income 140,634 115,540
_________ _________
Loss before pro-
vision for income taxes (208,193) (160,955)
Income tax benefit (87,377) (68,712)
_________ _________
Net Loss $ (120,816) $ (92,243)
Loss per share $(.02) $(.02)*
Weighted average shares
outstanding 5,742,927 5,751,980*
Dividends paid $545,593 $517,692
Per share, Class A $.095 $.09*
Per share, Class B $.095 $.09*
</TABLE>
*Restated for two-for-one stock split paid February 15, 1995.
The operating results for these thirteen (13) periods are not
necessarily indicative of results to be expected for the year.
See notes to financial information.
<PAGE>
BOWL AMERICA INCORPORATED AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
<TABLE>
<CAPTION>
October 1, 1995 July 2, 1995
_______________ _____________
<S> <C> <C>
ASSETS
Current Assets
Cash and cash equivalents $ 2,494,056 $ 973,678
Short-term investments 4,819,164 6,660,958
Inventories 854,265 617,130
Prepaid expenses and other 677,622 562,217
Income taxes refundable 532,370 444,626
__________ __________
Total Current Assets 9,377,477 9,258,609
Property, Plant and Equipment
less accumulated depreciation of
$18,382,305 and $17,964,967 23,076,751 23,399,267
Other Assets
Noncurrent marketable securities 3,519,402 3,093,555
Cash surrender value-life insurance 315,208 347,312
Other long-term assets 229,608 486,002
__________ __________
TOTAL ASSETS $36,518,446 $36,584,745
</TABLE>
<PAGE>
BOWL AMERICA INCORPORATED AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
<TABLE>
<CAPTION>
October 1, 1995 July 2, 1995
_______________ ____________
LIABILITIES AND STOCKHOLDERS' EQUITY
<S> <C> <C>
Current Liabilities
Accounts payable $ 700,370 $ 693,280
Accrued expenses and payroll ded 1,014,363 1,047,266
Other current liabilities 645,375 441,698
Current deferred income taxes 72,000 72,000
__________ __________
Total Current Liabilities 2,432,108 2,254,244
Noncurrent Deferred Income Taxes 2,048,822 1,887,000
TOTAL LIABILITIES 4,480,930 4,141,244
__________ __________
Stockholders' Equity
Preferred stock,
par value $10 a share: Authorized
and unissued 2,000,000 shares
Common stock,
par value $.10 per share
Authorized 10,000,000 shares
Class A issued and outstanding -
4,206,510 and 4,206,931 shares 420,652 420,693
Class B issued and outstanding -
1,536,146 153,614 153,614
Additional paid-in capital 4,944,337 4,944,585
Unrealized gain on securities
available-for-sale, net of tax 1,649,965 1,385,940
Retained earnings 24,868,948 25,538,669
__________ __________
TOTAL STOCKHOLDERS' EQUITY $32,037,516 $32,443,501
TOTAL LIABILITIES AND STOCKHOLDERS'
EQUITY $36,518,446 $36,584,745
<FN>
See notes to financial information.
</TABLE>
<PAGE>
<TABLE>
BOWL AMERICA INCORPORATED
CONSOLIDATED STATEMENTS OF CASH FLOWS
FOR THE THIRTEEN WEEKS ENDED OCTOBER 1, 1995 AND OCTOBER 2, 1994
<CAPTION>
October 1, October 2,
1995 1994
<S> <C> <C>
Cash Flows From Operating Activities:
Net loss $ (120,816) $ (92,243)
Adjustments to reconcile net
loss to net cash provided
by (used in) operating activities
Depreciation and amortization 492,723 476,870
Changes in assets and liabilities
Increase in inventories (237,135) (285,794)
Increase in prepaid and other (115,405) (164,230)
Decrease in other long-term assets 288,498 249,610
Increase (decrease) in accounts payable 7,090 (120,574)
Decrease in accrued expenses and
payroll deductions (32,903) (169,291)
Decrease in income taxes
payable/refundable (87,744) (112,676)
Increase in other current liabilities 203,677 195,376
_________ _________
Net cash provided by (used in)
operating activities $ 397,985 $ (22,952)
_________ _________
Cash flows from investing activities
Expenditures for property,plant,equip (170,207) (1,972,702)
Net decrease in short-term investments 1,841,794 460,179
_________ _________
Net cash provided by (used in)
investing activities 1,671,587 (1,512,523)
_________ _________
Cash flows from financing activities
Payment of cash dividends (545,593) (517,692)
Purchase of Class A Common Stock (3,601) (1,946)
_________ _________
Net cash used in financing activities (549,194) (519,638)
_________ _________
Net Increase (Decrease) in Cash and
Equivalents 1,520,378 (2,055,113)
Cash and Equivalents, Beginning of Qtr 973,678 3,468,677
_________ _________
Cash and Equivalents, End of Quarter $2,494,056 $1,413,564
Supplemental Disclosures of Cash Flow Information
Cash paid during the period for
Income taxes $ 367 $ 71,900
<FN>
See notes to financial information.
</TABLE>
<PAGE>
BOWL AMERICA INCORPORATED AND SUBSIDIARIES
NOTES TO FINANCIAL STATEMENTS
For the Thirteen Weeks Ended
October 1, 1995
1. Consolidated Financial Statements
The consolidated balance sheets as of October 1, 1995, and
the consolidated statements of earnings and cash flows for the
three-month periods ended October 1, 1995 and October 2, 1994
have been prepared by the Company, without audit.
This quarterly financial information is submitted in response
to the requirements of Form 10-Q and does not purport to be
financial statements prepared in accordance with generally accepted
accounting principles. They therefore do not include all
disclosures which might be associated with such statements.
In the opinion of management such information includes all
adjustments, consisting only of normal recurring accruals,
necessary to present fairly the financial position at October 1,
1995, and for all periods presented.
For a summary of significant accounting principles, which have
been continued without change refer to Note 1 to the financial
statements for the year ended July 2, 1995.
<PAGE>
MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION
AND RESULTS OF OPERATIONS
October 1, 1995
Liquidity and Capital Resources
Short-term investments consisting mainly of U.S. Treasury Bills
and Notes, and cash totaled $7,313,000 at the end of the first
quarter of fiscal 1996 or $321,000 lower than at the beginning
of the quarter. The decrease relates primarily to the seasonal
nature of bowling participation.
On September 1, 1994, the Comapny opened Bowl America Gaithersburg,
a 48-lane center with at 170-seat full service, diner style
restaurant. A center was closed in May 1995 at the expiration of
its lease. In July 1993, the Company paid $1.8 million in cash
for an existing 32-lane center in Orange Park, Florida, which
immediately began contributing to cash flow.
The Company plans to begin expansion of one bowling center during
the fiscal year. There will be no contribution to cash flow until
next fiscal year. Additional expenditures are also planned as the
Company continues to modernize other existing centers. Cash and
cash flows are sufficient to finance all currently planned
construction. The Company has maintained its fiscal year end 1995
position in telecommunications stock as a further source of
expansion capital.
Results of Operations
There was a $.02 per share loss in the first quarter of both this
year and last year. Last year, our newest location, Bowl America
Gaithersburg was open only one month of the quarter and start-up
costs were included in that period. This year the location,
which operates 24 hours a day was open the entire period.
Operating revenues decreased 1% this quarter versus an increase
of 5% in the first quarter last year. League linage was down for
the period but that was more than offset by an increase in open
play caused by promotions offered during the summer season.
However, the promotional pricing resulted in a lower average
game rate in this year's quarter.
Food and beverage sales were up due to traffic at our
Gaithersburg Diner.X.Press location. Cost of food and beverage
sales were up in response to the higher sales.
Operating expenses increased slightly in the current quarter
versus an 11% increase in the comparable quarter last year
when, as noted above, the start-up costs for Gaithersburg were
reported. Employee compensation and benefits were up 2% this
period versus a 10% increase in the prior year period, that
increase being primarily a result of staffing a new location.
<PAGE>
Advertising costs decreased 20% from the prior year period when
we were conducting media campaigns to promote the new location
and our bowling instruction program. Utility costs increased 2%
in the current quarter compared to a 5% increase in the prior year
quarter. The increasse in both periods relates to the expense
for new centers.
Rent expense decreased 9% in the current 13 week period and 3%
in the prior year period, the decrease a result of reduced sales
at some leased locations and one fewer leased center this period.
Real estate and personal property taxes and insurance premiums
were flat for the period.
Increases in depreciation and amortization expense of 3% in the
current quarter relates primarily to the Gaithersburg location
being open for the full quarter this year. The 17% increase in
the comparable quarter last year was due mainly to the opening
of the new bowling centers.
<PAGE>
BOWL AMERICA INCORPORATED AND SUBSIDIARIES
S.E.C. FORM 10-Q
October 1, 1995
PART II - OTHER INFORMATION
No material unusual charges or credits to income or changes in
independent accountants occurred during the quarter which would
require the filing of a Form 8-K.
<PAGE>
BOWL AMERICA INCORPORATED AND SUBSIDIARIES
SIGNATURES
Pursuant to the requirement of the Securities Exchange Act of 1934,
the registrant has duly caused this report to be signed on its behalf
by the undersigned thereunto duly authorized.
BOWL AMERICA INCORPORATED
Registrant
November 13, 1995 Leslie H. Goldberg
Date Leslie H. Goldberg
President
November 13, 1995 Cheryl A. Dragoo
Date Cheryl A. Dragoo
Controller
<TABLE> <S> <C>
<ARTICLE> 5
<MULTIPLIER> 1,000
<CURRENCY> U.S. DOLLARS
<EXCHANGE-RATE> 1
<S> <C>
<PERIOD-TYPE> 3-MOS
<FISCAL-YEAR-END> JUN-30-1996
<PERIOD-END> OCT-01-1995
<CASH> 2,494
<SECURITIES> 3,519
<RECEIVABLES> 0
<ALLOWANCES> 0
<INVENTORY> 854
<CURRENT-ASSETS> 9,377
<PP&E> 41,459
<DEPRECIATION> 18,382
<TOTAL-ASSETS> 36,518
<CURRENT-LIABILITIES> 2,432
<BONDS> 0
0
0
<COMMON> 574
<OTHER-SE> 31,463
<TOTAL-LIABILITY-AND-EQUITY> 36,518
<SALES> 1,844
<TOTAL-REVENUES> 5,668
<CGS> 610
<TOTAL-COSTS> 6,017
<OTHER-EXPENSES> 0
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 0
<INCOME-PRETAX> (349)
<INCOME-TAX> (87)
<INCOME-CONTINUING> (121)
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> (121)
<EPS-PRIMARY> (.02)
<EPS-DILUTED> (.02)
</TABLE>
