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 July 28, 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 September 8, 1995 the registrant had 9,396,933 shares of common
stock outstanding.
(end of cover page)
<PAGE>
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 1-5 have been omitted because they are not applicable with respect
to the current reporting period.
Item 6. Exhibits and Reports on Form 8-K
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 thereunto duly authorized.
BRIDGFORD FOODS CORPORATION
(Registrant)
By:/s/ Robert E. Schulze
September 8, 1995 R. E. Schulze, President
Date and Principal Financial Officer
<PAGE>
<TABLE>
Item 1. a.
BRIDGFORD FOODS CORPORATION
CONSOLIDATED BALANCE SHEETS
<CAPTION>
July 28 October 28
1995 1994
(unaudited) (audited)
ASSETS
Current assets:
<S> <C> <C>
Cash and cash equivalents $9,797,851 $12,648,368
Accounts receivable, less allowance
for doubtful accounts of $464,541
and $470,582 8,767,170 9,422,201
Inventories (Note 2) 13,176,510 12,060,020
Prepaid expenses and other 6,738,916 5,296,590
Total current assets 38,480,447 39,427,179
Property, plant and equipment, less
accumulated depreciation of $21,037,606
and $19,472,731 11,009,405 7,559,382
$49,489,852 $46,986,561
LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities:
Accounts payable $3,487,210 $4,253,882
Accrued payroll and other expenses 10,462,616 9,992,835
Income taxes payable 232,228 309,832
Total current liabilities 14,182,054 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 22,829,101 19,951,315
35,307,798 32,430,012
$49,489,852 $46,986,561
</TABLE>
<PAGE>
<TABLE>
Item 1. b.
BRIDGFORD FOODS CORPORATION
CONSOLIDATED STATEMENTS OF INCOME
(Unaudited)
<CAPTION>
13 weeks ended 39 weeks ended
July 28 July 29 July 28 July 29
1995 1994 1995 1994
<S> <C> <C> <C> <C>
Net sales $26,000,551 $25,570,294 $81,140,885 $80,516,375
Cost of products sold,
excluding depreciation 16,834,759 16,479,676 52,353,869 53,043,816
Selling, general and
administrative expenses 6,166,009 6,256,464 19,852,908 19,082,381
Depreciation 521,625 490,750 1,564,875 1,472,250
23,522,393 23,226,890 73,771,652 73,598,447
Income before taxes 2,478,159 2,343,404 7,369,234 6,917,928
Income tax provision 941,000 890,000 2,800,000 2,629,000
Net income $1,537,159 $1,453,404 $4,569,234 $4,288,928
Net income
per share (Note 3) $0.16 $0.15 $0.49 $0.46
Cash dividends paid
per share (Note 3) $0.05 $0.05 $0.18 $0.15
</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 $15,688,974
Net income 4,288,928
Cash dividends
($.15 per share) (1,409,540)
July 29, 1994 9,396,933 $9,453,816 $3,024,881 $18,568,362
October 28, 1994 9,396,933 $9,453,816 $3,024,881 $19,951,315
Net income 4,569,234
Cash dividends
($.18 per share) (1,691,448)
July 28, 1995 9,396,933 $9,453,816 $3,024,881 $22,829,101
</TABLE>
<PAGE>
<TABLE>
Item 1.c.
BRIDGFORD FOODS CORPORATION
CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited)
<CAPTION>
39 weeks ended
July 28 July 29
1995 1994
Cash flows from operating activities:
<S> <C> <C>
Net income $4,569,234 $4,288,928
Income charges not affecting cash:
Depreciation 1,564,875 1,472,250
Provision for losses on accounts receivable 49,200 40,950
Effect on cash of changes in assets and liabilities:
Accounts receivable 605,831 967,728
Inventories (1,116,490) (449,765)
Prepaid expenses and other (1,442,326) (62,685)
Accounts payable and accrued expenses (296,891) 995,888
Income taxes payable (77,604) 26,000
Net cash provided by operating activities 3,855,829 7,279,294
Cash used in investing activities:
Additions to property, plant and equipment (5,014,898) (1,672,047)
Cash used for financing activities:
Cash dividends paid (1,691,448) (1,409,540)
Net increase (decrease) in cash and cash equivalents (2,850,517) 4,197,707
Cash and cash equivalents at beginning of period 12,648,368 7,272,912
Cash and cash equivalents at end of period $9,797,851 $11,470,619
Cash paid for income taxes $4,094,000 $2,940,000
</TABLE>
<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 thirty-nine
weeks ended July 28, 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
<TABLE>
<CAPTION>
Inventories are comprised as follows at the respective periods:
July 29 October 28
1995 1994
<S> <C> <C>
Meat, ingredients
and supplies $4,922,850 $3,796,314
Work in progress 1,604,302 1,524,807
Finished goods 6,649,358 6,738,899
$13,176,510 $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>
Item 2.
Management's Discussion and Analysis of Financial Condition and Results of
Operations
Sales in the third quarter of the 1995 fiscal year increased $430,000 (1.7%)
over sales in the same quarter last year to $26,001,000. Compared to the
prior fiscal quarter, sales decreased by $635,000 (2.4%). The changes in
comparative sales relate primarily to differences in unit sales volume.
The decrease in sales from the prior fiscal quarter reflects normal seasonal
activity and changes in product mix. Sales for the first thirty-nine weeks
of the 1995 fiscal year increased $625,000 (.8%) to $81,141,000 compared to
the same period last year. The increase in sales relates primarily to higher
unit sales volume. Price increases on selected products effective late in
the quarter did not materially impact sales for the reported periods of the
1995 fiscal year.
Cost of products sold in the third quarter of 1995 increased $355,000 (2.2%)
to $16,835,000 compared to the third quarter of the 1994 fiscal year. When
compared to the prior fiscal quarter, cost of products sold decreased
$282,000 (1.7%). Cost of products sold in the first three quarters of the
1995 fiscal year increased $64,000 (.1%) to $52,354,000 compared to the same
period of 1994. The increase in cost of products sold for the respective
periods relate primarily to increased unit sales volume and to changes in
product mix.
Selling, general and administrative expenses were $6,166,000 in the third
quarter of the 1995 fiscal year, which represents a decrease of
$90,000 (1.5%) compared to the same period of 1994. Selling, general and
administrative expenses in the third quarter of 1995 decreased
$129,000 (2.1%) compared to the prior fiscal quarter. For the first three
quarters of the 1995 fiscal year, selling, general and administrative
expenses increased $17,000 (.1%) to $19,853,000 compared to the same period
in 1994. Selling, general and administrative expenses grew at a slightly
lower rate than did sales volume in the respective periods.
Depreciation expense in the third quarter of 1995 was $522,000, the same as
the fiscal quarter. Compared to the same period last year, depreciation
expense increased $31,000 (6.3%) and the $1,565,000 in depreciation expense
for the first three quarters of 1995 was $93,000 (6.3%) higher than the same
period in 1994.
The effective tax rate in the first thirty-nine weeks of 1995 was 38.0%,
consistent with the same period in the prior year.
Cash and cash equivalents decreased $2,851,000 (22.5%) to $9,798,000 in the
first thirty-nine weeks of the 1995 fiscal year. Cash flows from operating
activities ($3,856,000) were favorably influenced by net income for the
period ($4,569,000),depreciation expense ($1,565,000) and reductions in
accounts receivable balances ($606,000) off set by increases in inventories
($1,116,000) and prepaid expenses and other ($1,442,000). For the first
thirty-nine weeks of the prior fiscal year, cash and cash equivalents
benefited primarily from depreciation ($1,472,000), reductions in accounts
receivable ($968,000) and increases in accounts payable and accrued expenses
($996,000).
Management's Discussion and Analysis of Financial Condition and Results of
Operations (Continued)
Cash used in the first thirty-nine weeks of the 1995 fiscal year for
additions to plant and equipment totaled $5,015,000. The amount reflects
the Company's continued investment in manufacturing facilities and
transportation equipment. Significant expenditures are currently in process
related to projects that extend into fiscal 1995 and beyond. These
expenditures include a food processing facility in North Carolina and
extensive additions to an existing plant in Texas. Total capital expenditures
for these projects in the $9 to $10 million range are currently
anticipated.
Cash used for financing activities consists of cash dividends in the amount
of $1,691,000 for the first 39 weeks of 1995, an increase of $282,000 (20.0%)
over the comparable period last year. The increase relates to a three-cent
per share extra cash dividend paid in the first quarter of 1995 in addition
to the regular five-cent per share cash dividends paid in the first three
quarters of 1995 and 1994.
The Company remained free of interest bearing debt during the first three
quarters of 1995. The Company extended its revolving line of credit with
Bank of America that now expires April 30, 1997 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.
Item 6.
Exhibits and Reports on Form 8-K
(a) Exhibits:
27- Financial Data Schedule for the thirty-nine weeks ended July 28, 1995,
submitted to the Securities and Exchange Commission in electronic format
( for SEC information only)
(b)- Reports on Form 8-K
No Report on Form 8-K has been filed during the quarter for which this report i
filed.
<TABLE> <S> <C>
<ARTICLE> 5
<LEGEND>
THIS SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM THE
FINANCIAL STATEMENTS OF BRIDGFORD FOODS CORPORATION FOR THE THIRTY-NINE WEEKS
ENDED JULY 28, 1995, AS SET FORTH IN ITS FORM 10-Q FOR SUCH QUARTER, AND IS
QUALIFIED IN ITS ENTIRETY BY REFERENCE TO SUCH FINANCIAL STATEMENTS.
</LEGEND>
<S> <C>
<PERIOD-TYPE> OTHER
<FISCAL-YEAR-END> NOV-03-1995
<PERIOD-END> JUL-28-1995
<CASH> 9,797,851
<SECURITIES> 0
<RECEIVABLES> 9,231,711
<ALLOWANCES> 464,541
<INVENTORY> 13,176,510
<CURRENT-ASSETS> 38,480,447
<PP&E> 32,047,011
<DEPRECIATION> 21,037,606
<TOTAL-ASSETS> 49,489,852
<CURRENT-LIABILITIES> 14,182,054
<BONDS> 0
<COMMON> 9,453,816
0
0
<OTHER-SE> 25,853,982
<TOTAL-LIABILITY-AND-EQUITY> 49,489,852
<SALES> 81,140,885
<TOTAL-REVENUES> 81,140,885
<CGS> 52,353,869
<TOTAL-COSTS> 52,353,869
<OTHER-EXPENSES> 21,417,783
<LOSS-PROVISION> 49,200
<INTEREST-EXPENSE> 100,100
<INCOME-PRETAX> 7,369,234
<INCOME-TAX> 2,800,000
<INCOME-CONTINUING> 4,569,234
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 4,569,234
<EPS-PRIMARY> .49
<EPS-DILUTED> .49
</TABLE>
