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 AND EXCHANGE ACT OF 1934
For the quarterly period ended January 27, 1995
OR
[ ] TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF
THE SECURITIES EXCHANGE ACT OF 1934
For the transition period from
Commission file number 0-2396
BRIDGFORD FOODS CORPORATION
(Exact name of Registrant as specified in its charter)
California 95-1778176
(State or other jurisdiction of (I.R.S. Employer
incorporation or organization) identification number)
1308 N. Patt Street, Anaheim, Ca 92801
(Address of principal executive offices-Zip code)
714-526-5533
(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 [ ]
As of March 1, 1995 the registrant had 9,396,933 shares of common
stock outstanding.
Number of pages in this Form 10-Q 8
(end of cover page) Page 1 of 8 pages
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BRIDGFORD FOODS CORPORATION
FORM 10-Q QUARTERLY REPORT
INDEX
Part I. Financial Information
Item 1. Financial Statements
a. Consolidated Balance Sheets
b. Consolidated Statements of Income
b. Consolidated Statements of Shareholders' Equity
c. Consolidated Statements of Cash Flows
d. Notes to Consolidated Financial Statements
Item 2. Management's Discussion and Analysis of Financial Condition
and Results of Operations
Part II. Other Information
Items 1-6 have been omitted because they are not applicable with respect
to the current reporting period.
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
the undersigned thereunto duly authorized.
BRIDGFORD FOODS CORPORATION
(Registrant)
By:/s/ Robert E. Schulze
March 10, 1995 R. E. Schulze, Executive Vice President,
Date Secretary, Treasurer and Principal
Financial Officer
Page 2 of 8 pages
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<TABLE>
Item 1. a.
BRIDGFORD FOODS CORPORATION
CONSOLIDATED BALANCE SHEETS
<CAPTION>
January 27 October 28
1995 1994
(unaudited) (audited)
ASSETS
Current assets:
<S> <C> <C>
Cash and cash equivalents $14,627,360 $12,648,368
Accounts receivable, less allowance
for doubtful accounts of $464,554
and $470,582 7,400,022 9,422,201
Inventories (Note 2) 10,463,174 12,060,020
Prepaid expenses and other 6,190,745 5,296,590
Total current assets 38,681,301 39,427,179
Property, plant and equipment, less
accumulated depreciation of $19,994,356
and $19,472,731 7,630,957 7,559,382
$46,312,258 $46,986,561
LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities:
Accounts payable $3,242,505 $4,253,882
Accrued payroll and other expenses 9,963,078 9,992,835
Income taxes payable 71,228 309,832
Total current liabilities 13,276,811 14,556,549
Shareholders'equity:
Preferred stock, without par value
Authorized - 1,000,000 shares
Issued and outstanding - none
Common stock, $1.00 par value
Authorized - 20,000,000 shares
Issued and outstanding - 9,396,933 shares 9,453,816 9,453,816
Capital in excess of par value 3,024,881 3,024,881
Retained earnings 20,556,750 19,951,315
33,035,447 32,430,012
$46,312,258 $46,986,561
</TABLE>
Page 3 of 8 pages
<PAGE>
<TABLE>
Item 1. b.
BRIDGFORD FOODS CORPORATION
CONSOLIDATED STATEMENTS OF INCOME
(Unaudited)
<CAPTION>
13 weeks ended
January 27 January 28
1995 1994
<S> <C> <C>
Net sales $28,504,586 $28,417,382
Cost of products sold,
excluding depreciation 18,402,229 18,727,632
Selling, general and
administrative expenses 7,391,542 7,194,789
Depreciation 521,625 490,750
26,315,396 26,413,171
Income before taxes 2,189,190 2,004,211
Income tax provision 832,000 762,000
Net income $1,357,190 $1,242,211
Net income
per share (Note 3) $0.14 $0.13
Cash dividends paid
per share (Note 3) $0.08 $0.05
</TABLE>
<TABLE>
CONSOLIDATED STATEMENTS OF SHAREHOLDER'S EQUITY
(Unaudited)
<CAPTION>
Capital
Common Stock in excess Retained
Shares Amount of par earnings
<S> <C> <C> <C> <C>
October 29, 1993 9,396,933 $9,453,816 $3,024,881 $15,688,974
Net income 1,242,211
Cash dividends
($.05 per share) (469,847)
January 28, 1994 9,396,933 $9,453,816 $3,024,881 $16,461,338
October 28, 1994 9,396,933 $9,453,816 $3,024,881 $19,951,315
Net income 1,357,190
Cash dividends
($.08 per share) (751,755)
January 27, 1995 9,396,933 $9,453,816 $3,024,881 $20,556,750
</TABLE>
Page 4 of 8 pages
<PAGE>
<TABLE>
Item 1.c.
BRIDGFORD FOODS CORPORATION
CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited)
<CAPTION>
13 weeks ended
January 27 January 28
1995 1994
Cash flows from operating activities:
<S> <C> <C>
Net income $1,357,190 $1,242,211
Income charges not affecting cash:
Depreciation 521,625 490,750
Provision for losses on accounts receivable 11,538 13,650
Effect on cash of changes in assets and liabilities:
Accounts receivable 2,010,641 455,008
Inventories 1,596,846 943,861
Prepaid expenses and other (894,155) (363,107)
Accounts payable and accrued expenses (1,041,134) (268,028)
Income taxes payable (238,604) 112,874
Net cash provided by operating activities 3,323,947 2,627,219
Cash used in investing activities:
Additions to property, plant and equipment (593,200) (481,831)
Cash used for financing activities:
Cash dividends paid (751,755) (469,847)
Net increase in cash and cash equivalents 1,978,992 1,675,541
Cash and cash equivalents at beginning of period 12,648,368 7,272,912
Cash and cash equivalents at end of period $14,627,360 $8,948,453
Cash paid for income taxes $1,589,000 $867,000
</TABLE>
Page 5 of 8 pages
<PAGE>
Item 1.d.
BRIDGFORD FOODS CORPORATION
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
Note 1 - General Comments
The consolidated financial statements of the Company for the thirteen
weeks ended January 27, 1995 have been prepared in conformity with
the accounting principles described in the 1994 Annual Report to
Shareholders and include all adjustments considered necessary by
management for a fair statement of the interim period. Such adjustments
consist only of normal recurring items. This report should be read in
conjunction with the Company's 1994 Annual Report to Shareholders.
Certain reclassifications have been made in the accompanying financial
statements to comparative interim periods to conform with the current
presentation.
Note 2 - Inventories
Inventories are comprised as follows at the respective periods:
<TABLE>
<CAPTION>
January 27 October 28
1995 1994
<S> <C> <C>
Meat, ingredients
and supplies $3,858,521 $3,796,314
Work in progress 887,014 1,524,807
Finished goods 5,717,639 6,738,899
$10,463,174 $12,060,020
</TABLE>
Note 3 - Common Stock and Per Share Data
The weighted average shares used for computing earnings per share
in the accompanying statements of income were 9,396,933 for all periods
presented.
Page 6 of 8 pages
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Item 2.
Management's Discussion and Analysis of Financial
Condition and Results of Operations
Sales increased by $87,000 (.3%) to $28,505,000 in the first quarter
of the 1995 fiscal year compared to the same quarter last year. Sales in
the first quarter increased $137,000 (.5%) compared to the previous
fiscal quarter. The sales increases relate to higher unit sales volume
and changes in product mix.
Cost of products sold decreased by $325,000 (1.7%) in the first quarter of
the 1995 fiscal year to $18,402,000 compared to the first quarter of 1994,
due primarily to lower ingredient costs. Compared to the prior
fiscal quarter, cost of products sold increased $512,000 (2.9%)
as a result of higher unit sales volume and changes in product mix.
Selling, general and administrative expenses increased by $197,000 (2.7%)
to $7,392,000 in the first quarter of 1995 compared to the same quarter
last year. The increase primarily relates to increased labor costs.
Compared to the prior fiscal quarter, selling, general and administrative
expenses increased by $302,000 (4.3%). Selling, general & administrative
expenses increased due to higher sales volume and increased labor costs
in the first quarter of 1995.
Depreciation expense increased by $31,000 (6.3%) in the first quarter of
the 1995 fiscal year compared to the first quarter of 1994. Depreciation
expense was $123,000 (30.9%) higher than the prior fiscal quarter.
Depreciation expense in the fourth quarter of 1994 was reduced by
approximately $92,000 to adjust estimated expenses for the fiscal
year to actual.
The effective income tax rate was 38.0% in the first quarter of 1995
and 1994 fiscal years and in the prior quarter.
Cash and cash equivalents increased $1,979,000 (15.6%) to $14,627,000
during the first quarter of the 1995 fiscal year. The principal items
affecting the $3,324,000 net cash provided by operating activities were
net income of $1,357,000 and accounts receivable and inventory
reductions of $2,011,000 and $1,597,000, respectively.
Page 7 of 8 pages
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Management's Discussion and Analysis of Financial
Condition and Results of Operations (Continued)
Cash used in investing activities for the first quarter of 1995 consisted
of $593,000 in additions to property, plant and equipment. This amount
reflects the Company's continued investment in manufacturing facilities
and transportation equipment. Significant capital expenditures are planned
by the Company related to projects that extend into fiscal year 1995
and beyond. These expenditures include the construction of a food
processing facility in North Carolina and extensive additions to existing
facilities located in Texas. Capital expenditures in the $9 to $10
million range are anticipated.
Cash used for financing activities consists of cash dividends in the
amount of $752,000 in the first quarter of 1995, an increase of $282,000
(60.0%) over the comparable period last year. The increase relates to a
three-cent per share extra cash dividend paid together with a regular
five-cent per share cash dividend in the first quarter of 1995 compared
to a regular quarterly cash dividend of five-cents per share
paid in the first quarter of 1994.
The Company remained free of interest bearing debt during the first
quarter of 1995. The Company's revolving line of credit with Bank of
America expires April 30, 1996 and provides for borrowings up to
$2,000,000. The Company has not borrowed under the line for more
than eight years.
The impact of inflation on the Company's financial position and results of
operations has not been significant. Management is of the opinion that
the Company's strong financial position and its capital resources are
sufficient to provide for its operating needs and capital expenditures.
Page 8 of 8 pages