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 December 31, 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
January 28, 1996
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 Twenty-six Weeks Ended
December 31, January 1, December 31, January 1,
1995 1995 1995 1995
_______________________ __________________________
<S> <C> <C> <C> <C>
Operating Revenues
Bowling and other $5,172,788 $5,689,892 $ 8,996,646 $ 9,695,561
Food and merchandise sales 2,249,369 2,458,318 4,093,324 4,183,601
_________ _________ __________ __________
7,422,157 8,148,210 13,089,970 13,879,162
Operating Expenses
Compensation and benefits 3,108,679 3,340,300 6,140,935 6,319,017
Cost of bowling and other 1,581,697 1,763,809 3,265,035 3,550,205
Cost of food and mdse sales 746,615 791,489 1,356,183 1,328,113
Depreciation and
amortization 506,447 500,012 998,030 976,730
General and administrative 201,548 170,618 401,443 399,610
_________ _________ __________ __________
6,144,986 6,566,228 12,161,626 12,573,675
Operating Income 1,277,171 1,581,982 928,344 1,305,487
Interest and dividend
income 154,579 119,165 295,213 234,705
_________ _________ __________ __________
Earnings before provision
for income taxes 1,431,750 1,701,147 1,223,557 1,540,192
Provision for income taxes 535,753 638,762 448,376 570,050
_________ _________ __________ __________
Net Earnings $ 895,997 $1,062,385 $ 775,181 $ 970,142
Earnings per share $.16 $.19* $.14 $.17*
Weighted average shares
outstanding 5,742,656 5,751,356* 5,742,791 5,751,650*
Dividends paid $545,553 $517,671 $1,091,146 $1,035,363
Per share, Class A $.095 $.09* $.19 $.18*
Per share, Class B $.095 $.09* $.19 $.18*
</TABLE>
*Restated for two-for-one stock split paid February 15, 1995.
The operating results for these thirteen (13) and twenty-six (26) week
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>
December 31, 1995 July 2, 1995
_______________ _____________
<S> <C> <C>
ASSETS
Current Assets
Cash and cash equivalents $ 2,473,712 $ 973,678
Short-term investments 6,781,294 6,660,958
Inventories 736,255 617,130
Prepaid expenses and other 615,382 562,217
Income taxes refundable 153,764 444,626
__________ __________
Total Current Assets 10,760,407 9,258,609
Property, Plant and Equipment
less accumulated depreciation of
$18,863,763 and $17,964,967 22,749,120 23,399,267
Other Assets
Noncurrent marketable securities 3,955,130 3,093,555
Cash surrender value-life insurance 316,035 347,312
Other long-term assets 286,609 486,002
__________ __________
TOTAL ASSETS $38,067,301 $36,584,745
</TABLE>
<PAGE>
BOWL AMERICA INCORPORATED AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
<TABLE>
<CAPTION>
December 31, 1995 July 2, 1995
_______________ ____________
LIABILITIES AND STOCKHOLDERS' EQUITY
<S> <C> <C>
Current Liabilities
Accounts payable $ 622,063 $ 693,280
Accrued expenses and payroll ded 1,004,858 1,047,266
Other current liabilities 1,495,870 441,698
Current deferred income taxes 72,000 72,000
__________ __________
Total Current Liabilities 3,194,791 2,254,244
Noncurrent Deferred Income Taxes 2,214,398 1,887,000
TOTAL LIABILITIES 5,409,189 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, 1,920,117 1,385,940
Retained earnings 25,219,392 25,538,669
__________ __________
TOTAL STOCKHOLDERS' EQUITY $32,658,112 $32,443,501
TOTAL LIABILITIES AND STOCKHOLDERS'
EQUITY $38,067,301 $36,584,745
<FN>
See notes to financial information.
</TABLE>
<PAGE>
<TABLE>
BOWL AMERICA INCORPORATED
CONSOLIDATED STATEMENTS OF CASH FLOWS
FOR THE TWENTY-SIX WEEKS ENDED DECEMBER 31, 1995 AND JANUARY 1, 1995
<CAPTION>
December 31, January 1,
1995 1995
<S> <C> <C>
Cash Flows From Operating Activities:
Net earnings $ 775,181 $ 970,142
Adjustments to reconcile net
earnings to net cash provided
by operating activities
Depreciation and amortization 998,030 858,800
(Gain) Loss on sale/abandonment of
assets net (5,634) 39,942
Changes in assets and liabilities
Increase in inventories (119,125) (173,397)
Increase in prepaid and other (53,165) (802,958)
Decrease in other long-term assets 230,670 248,784
Decrease in accounts payable (71,217) (264,116)
(Decrease) increase in accrued
expenses and payroll deductions (42,408) 491,470
Increase in income taxes payable - 289,314
Decrease in income taxes refundable 290,862 -
Increase in other current liabilities 1,054,172 1,074,653
_________ _________
Net cash provided by operating activities $3,057,366 $2,732,634
_________ _________
Cash flows from investing activities
Expenditures for property,plant,equip (342,249) (2,199,953)
Net increase in short-term investments (120,336) (622,811)
_________ _________
Net cash used in investing activities (462,585) (2,822,764)
_________ _________
Cash flows from financing activities
Payment of cash dividends (1,091,146) (1,035,363)
Purchase of Class A Common Stock (3,601) (57,196)
_________ _________
Net cash used in financing activities (1,094,747) (1,092,559)
_________ _________
Net Increase (Decrease) in Cash and
Equivalents 1,500,034 (1,182,689)
Cash and Equivalents, Beginning of Year 973,678 3,468,677
_________ _________
Cash and Equivalents, End of Period $2,473,712 $2,285,988
Supplemental Disclosures of Cash Flow Information
Cash paid during the period for
Income taxes $ 157,514 $ 280,736
<FN>
See notes to financial information.
</TABLE>
<PAGE>
BOWL AMERICA INCORPORATED AND SUBSIDIARIES
NOTES TO FINANCIAL STATEMENTS
For the Twenty-six Weeks Ended
December 31, 1995
1. Consolidated Financial Statements
The consolidated balance sheets as of December 31, 1995, and
the consolidated statements of earnings and cash flows for the
three-month and six-month periods ended December 31, 1995 and
January 1, 1995 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 December 31,
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>
BOWL AMERICA INCORPORATED
MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION
AND RESULTS OF OPERATIONS
December 31, 1995
Liquidity and Capital Resources
Short-term investments consisting mainly of U.S. Treasury Bills
and Notes, and cash totaled $9,255,000 at the end of the second
quarter of fiscal 1996 or $1,942,000 higher than at the beginning
of the quarter. The increase relates primarily to the seasonal
nature of bowling participation.
On September 1, 1994, the Company 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.
Expansion of our Dranesville bowling center from 32 lanes to 48
lanes has begun, but 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 flow 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 $.16 per share profit for the thirteen-week period ending
December 31, 1995, versus $.19 per share profit for the thirteen weeks
ended January 1, 1995. For the current twenty-six week period
earnings per share were $.14 compared to $.17 for the comparable
period a year ago. Decreases in both revenues and expenses are
partially due to our operating one less center for the majority
of the current six-month reporting period compared to the prior
year period.
<PAGE>
Operating revenues decreased 6% for the current six-month period,
versus an increase of 6% in the comparable period a year ago.
Decreases in league linage and in the average price per game
exceeded the benefit of increased open play games during the
twenty-six week period.
Although food and beverage sales were down in the current period,
sales at comparable locations were up slightly due to traffic
at our Diner.X.Press restaurant.
Operating expenses decreased 3% in the current six-month period
versus an increase of 13% in the prior year comparable period
when start-up costs for Gaithersburg were reported. Employee
compensation and benefits were down 3% this period versus
a 13% increase in the prior year period, the changes in both
years resulting from differences in the number of centers in
operation.
Advertising costs decreased 5% from the prior year period
although we are still conducting media campaigns to promote
our centers. Utility costs decreased 2% in the current year
period compared with a 5% increase in the prior year
period.
Rent expense decreased 11 % in the current twenty-six week
period and 2% in the prior year period, the decrease a result
of reduced sales at some leased locations and the closing
of a leased center, mentioned above. Real estate and
personal property taxes and insurance premiums were down 2%
for the period compared to an increase in the prior year
relating to the opening of a new location.
Increases in depreciation and amortization expense of 2% in the
current period relates primarily to the Gaithersburg location
being open for the full six-month period this year.
The 16% increase in the comparable period last year was
due mainly to the opening of the new bowling centers.
Since the end of the second quarter, the northern centers,
20 of our 25 locations, have been adversely affected by the
Blizzard of '96 and the extreme cold. This has resulted in
a loss of linage and increases in maintenance costs.
<PAGE>
BOWL AMERICA INCORPORATED AND SUBSIDIARIES
S.E.C. FORM 10-Q
December 31, 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
February 13, 1996 Leslie H. Goldberg
Date Leslie H. Goldberg
President
February 13, 1996 Cheryl A. Dragoo
Date Cheryl A. Dragoo
Controller
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0
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