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 April 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 June 9, 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
Item 4. Submission of Matters to a Vote of Security Holders
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
June 9, 1995 R. E. Schulze, President
Date and Principal Financial Officer
<PAGE>
<TABLE>
Item 1. a.
BRIDGFORD FOODS CORPORATION
CONSOLIDATED BALANCE SHEETS
<CAPTION>
April 28 October 28
1995 1994
(unaudited) (audited)
ASSETS
Current assets:
<S> <C> <C>
Cash and cash equivalents $13,562,338 $12,648,368
Accounts receivable, less allowance
for doubtful accounts of $421,115
and $470,582 8,144,358 9,422,201
Inventories (Note 2) 12,101,936 12,060,020
Prepaid expenses and other 6,213,405 5,296,590
Total current assets 40,022,037 39,427,179
Property, plant and equipment, less
accumulated depreciation of $20,515,981
and $19,472,731 8,692,231 7,559,382
$48,714,268 $46,986,561
LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities:
Accounts payable $3,774,837 $4,253,882
Accrued payroll and other expenses 10,583,717 9,992,835
Income taxes payable 115,228 309,832
Total current liabilities 14,473,782 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 21,761,789 19,951,315
34,240,486 32,430,012
$48,714,268 $46,986,561
</TABLE>
<PAGE>
<TABLE>
Item 1. b.
BRIDGFORD FOODS CORPORATION
CONSOLIDATED STATEMENTS OF INCOME
(Unaudited)
<CAPTION>
13 weeks ended 26 weeks ended
April 28 April 29 April 28 April 29
1995 1994 1995 1994
<S> <C> <C> <C> <C>
Net sales $26,635,748 $26,528,699 $55,140,334 $54,946,081
Cost of products sold,
excluding depreciation 17,116,881 17,082,758 35,519,110 35,810,390
Selling, general and
administrative expenses 6,295,357 6,384,878 13,686,899 13,579,667
Depreciation 521,625 490,750 1,043,250 981,500
23,933,863 23,958,386 50,249,259 50,371,557
Income before taxes 2,701,885 2,570,313 4,891,075 4,574,524
Income tax provision 1,027,000 977,000 1,859,000 1,739,000
Net income $1,674,885 $1,593,313 $3,032,075 $2,835,524
Net income
per share (Note 3) $0.18 $0.17 $0.32 $0.30
Cash dividends paid
per share (Note 3) $0.05 $0.05 $0.13 $0.10
</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 $15,688,974
Net income 2,835,524
Cash dividends
($.10 per share) (939,693)
April 29, 1994 9,396,933 $9,453,816 $3,024,881 $17,584,805
October 28, 1994 9,396,933 $9,453,816 $3,024,881 $19,951,315
Net income 3,032,075
Cash dividends
($.13 per share) (1,221,601)
April 28, 1995 9,396,933 $9,453,816 $3,024,881 $21,761,789
</TABLE>
<PAGE>
<TABLE>
Item 1.c.
BRIDGFORD FOODS CORPORATION
CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited)
<CAPTION>
26 weeks ended
April 28 April 29
1995 1994
Cash flows from operating activities:
<S> <C> <C>
Net income $3,032,075 $2,835,524
Income charges not affecting cash:
Depreciation 1,043,250 981,500
Provision for losses on accounts receivable 30,000 27,300
Effect on cash of changes in assets and liabilities:
Accounts receivable 1,247,843 910,167
Inventories (41,916) (440,569)
Prepaid expenses and other (916,815) (273,605)
Accounts payable and accrued expenses 111,837 902,689
Income taxes payable (194,604) 158,000
Net cash provided by operating activities 4,311,670 5,101,006
Cash used in investing activities:
Additions to property, plant and equipment (2,176,099) (902,665)
Cash used for financing activities:
Cash dividends paid (1,221,601) (939,693)
Net increase in cash and cash equivalents 913,970 3,258,648
Cash and cash equivalents at beginning of period 12,648,368 7,272,912
Cash and cash equivalents at end of period $13,562,338 $10,531,560
Cash paid for income taxes $2,777,000 $1,957,000
</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
twenty-six weeks ended April 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:
April 28 October 28
1995 1994
<S> <C> <C>
Meat, ingredients
and supplies $4,823,103 $3,796,314
Work in progress 1,468,904 1,524,807
Finished goods 5,809,929 6,738,899
$12,101,936 $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 second quarter of the 1995 fiscal year increased $107,000
(.4%) over sales in the same quarter last year to $26,636,000.
Compared to the prior fiscal quarter, sales decreased by $1,869,000
(6.6%). 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 twenty-six weeks of the 1995 fiscal year increased $194,000
(.4%) to $55,140,000 compared to the same period last year. The
increase in sales relates primarily to higher overall unit sales volume.
Cost of products sold in the second quarter of 1995 increased $34,000
(.2%) to $17,117,000 compared to the second quarter of the 1994 fiscal
year. When compared to the prior fiscal quarter, cost of products sold
decreased $1,285,000 (7.0%). Cost of products sold in the first half of
the 1995 fiscal year decreased $291,000 (.8%) to $35,519,000
compared to the first half of 1994. The changes in cost of products sold
for the respective periods relate primarily to lower ingredient costs,
fluctuations in unit sales volume and differences in product mix between
the first and second quarters of 1995.
Selling, general and administrative expenses were $6,295,000 in the
second quarter of the 1995 fiscal year, which represents a decrease of
$90,000 (1.4%) when compared to the same period of 1994. Selling,
general and administrative expenses in the second quarter of 1994
decreased $1,096,000 (14.8%) from the prior fiscal quarter. For the first
half of the 1995 fiscal year, selling, general and administrative expenses
increased $107,000 (.8%) to $13,687,000 compared to the same period
in 1994. Selling, general and administrative expenses generally ran a
parallel course with changes in sales volume in the respective periods.
Depreciation expense in the second quarter of 1995 was $522,000, the
same as the prior fiscal quarter. Compared to the same period last year,
depreciation expense increased $31,000 (6.3%) and the $1,043,000 in
depreciation expense for the first half of 1995 was $62,000 (6.3%)
higher than the same period in 1994.
<PAGE>
Management's Discussion and Analysis of Financial Condition and Results
of Operations (Continued)
The effective tax rate in the first half of 1995 was 38.0%, consistent
with the same period in the prior year.
Cash and cash equivalents increased $914,000 (7.2%) to $13,562,000
in the first half of the 1995 fiscal year. Cash flows from operating
activities ($4,312,000) were favorably influenced by net income for the
period ($3,032,000), depreciation expense ($1,043,000) and reductions
in accounts receivable balances ($1,248,000). For the first half of the
prior fiscal year, cash and cash equivalents benefited from depreciation
($982,000), decreases in accounts receivable ($910,000) and increases
in accounts payable and accrued expenses ($903,000).
Cash used in the first half of the 1995 fiscal year for additions to
property, plant and equipment totaled $2,176,000. The amount reflects
the Company's continued investment in manufacturing facilities and
transportation equipment. Significant capital expenditures are currently in
process related to projects that extend into fiscal year 1995 and beyond.
These expenditures include a food processing facility in North Carolina
and extensive additions to the two existing plants 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 $1,222,000 in the first half of 1995, an increase of $282,000
(30.0%) 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 and second quarters of 1995 and 1994.
The Company remained free of interest bearing debt during the first half
of 1994. 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.
<PAGE>
Part II. Other Information
Item 4.
Submission of Matters to a Vote of Security Holders
The Company held its annual meeting of shareholders on Wednesday, March 15,
1995 at the Holiday Inn, 222 W. Houston Avenue, Fullerton, California at
10:00 am Shareholders representing 8,424,350 or 89.7% of the 9,396,933
shares entitled to vote were present in person or by proxy, with 11,448
broker non-votes. The following persons were nominated and elected
directors, with votes for or withheld from specific nominees for
directors as indicated:
FOR WITHHELD
H. Wm. Bridgford 8,420,550 3,800
Allan L. Bridgford 8,420,550 3,800
Robert E. Schulze 8,420,550 3,800
Paul A. Gilbert 7,807,150 617,200
John W. McNevin 8,424,187 163
Steven H. Price 8,423,025 1,325
Norman V. Wagner II 8,424,150 200
Paul R. Zippwald 8,423,450 900
Votes cast for the reappointment of Price Waterhouse LLP as the
independent public accountants for the Company for 1995 were
8,420,329 FOR, 2,163 AGAINST and 1,858 WITHHELD.
Item 6.
Exhibits and Reports on Form 8-K
(a) Exhibits:
27- Financial Data Schedule for the twenty-six weeks ended
April 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 is filed.
<TABLE> <S> <C>
<ARTICLE> 5
<LEGEND>
THIS SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM THE
FINANCIAL STATEMENTS OF BRIDGFORD FOODS CORPORATION FOR THE TWENTY-SIX WEEKS
ENDED APRIL 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>
<MULTIPLIER> 1
<S> <C>
<PERIOD-TYPE> OTHER
<FISCAL-YEAR-END> NOV-03-1995
<PERIOD-END> APR-28-1995
<CASH> 13,562,338
<SECURITIES> 0
<RECEIVABLES> 8,565,473
<ALLOWANCES> 421,115
<INVENTORY> 12,101,936
<CURRENT-ASSETS> 40,022,037
<PP&E> 29,208,212
<DEPRECIATION> 20,515,981
<TOTAL-ASSETS> 48,714,268
<CURRENT-LIABILITIES> 14,473,782
<BONDS> 0
<COMMON> 9,453,816
0
0
<OTHER-SE> 24,786,670
<TOTAL-LIABILITY-AND-EQUITY> 48,714,268
<SALES> 55,140,334
<TOTAL-REVENUES> 55,140,334
<CGS> 35,519,109
<TOTAL-COSTS> 35,519,109
<OTHER-EXPENSES> 14,730,149
<LOSS-PROVISION> 30,000
<INTEREST-EXPENSE> 67,261
<INCOME-PRETAX> 4,891,075
<INCOME-TAX> 1,859,000
<INCOME-CONTINUING> 3,032,075
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 3,032,075
<EPS-PRIMARY> .32
<EPS-DILUTED> .32
</TABLE>
