UNITED STATES
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 EXCHANGE ACT OF 1934
For the Quarter Ended September 26, 1998
OR
[ ] TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d)
OF THE SECURITIES EXCHANGE ACT OF 1934
For the transition period from to
Commission File Number: 2-62681
GOLD KIST INC.
(Exact name of registrant as specified in its charter)
GEORGIA 58-0255560
(State or other jurisdiction of (I.R.S. Employer
incorporation or organization) Identification No.)
244 Perimeter Center Parkway, N.E., Atlanta, Georgia 30346
(Address of principal executive offices) (Zip Code)
(Registrant's telephone number, including area code) (770) 393-
5000
N/A
(Former name, former address and former fiscal year, if changed
since last report.)
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
GOLD KIST INC.
INDEX
Page No.
Part I. Financial Information
Item 1. Financial Statements
Consolidated Balance Sheets -
September 26, 1998 and June 27, 1998 .. 1
Consolidated Statements of Operations
and Comprehensive Income -
Three Months Ended September 26, 1998
and September 27, 1997 ................ 2
Consolidated Statements of Cash Flows -
Three Months Ended September 26, 1998
and September 27, 1997 ................ 3
Notes to Consolidated Financial
Statements ............................ 4 - 5
Item 2. Management's Discussion and Analysis of
Results of Operations and Financial
Condition ............................. 6 - 11
Item 3. Quantitative And Qualitative Disclosures
About Market Risk...................... 11
Part II. Other Information
Item 6. Exhibits and reports on Form 8-K......... 12
<TABLE>
Page 1
Item 1. Financial GOLD KIST INC.
Statements CONSOLIDATED BALANCE SHEETS
(Amounts in Thousands)
(Unaudited)
<CAPTION>
Sept.26, June 27,
1998 1998
<S> <C> <C>
ASSETS
Current assets:
Cash and cash equivalents $ 23,854 11,789
Receivables, principally trade,
less allowance for doubtful
accounts of $1,501 at
September 26, 1998 and $3,113
at June 27, 1998 125,977 107,957
Inventories (note 3) 163,979 174,204
Deferred income taxes 24,302 45,431
Other current assets 45,091 32,673
Net assets of discontinued operations 218,914 247,621
Total current assets 602,117 619,675
Investments 117,366 125,623
Property, plant and equipment, net 254,133 255,791
Other assets 84,222 79,566
$1,057,838 1,080,655
LIABILITIES AND EQUITY
Current liabilities:
Notes payable and current maturities of
long-term debt:
Short-term borrowings $ 89,939 201,939
Subordinated loan certificates 32,846 35,005
Current maturities of long-term debt 141,863 93,248
264,648 330,192
Accounts payable 92,336 85,188
Accrued compensation and related expenses 32,894 32,466
Interest left on deposit 12,641 11,451
Other current liabilities 10,500 10,799
Total current liabilities 413,019 470,096
Long-term debt, excluding current maturities 323,116 320,600
Accrued postretirement benefit costs 49,958 48,678
Other liabilities 7,311 7,275
Total liabilities 793,404 846,649
Patrons' and other equity:
Common stock, $1.00 par value - Authorized
500 shares; issued and outstanding 33 at
September 26, 1998 and June 27, 1998 33 33
Patronage reserves 230,240 198,517
Unrealized gain on marketable equity
security (net of deferred income taxes
of $12,272 at September 26, 1998 and
$14,592 at June 27, 1998) 22,790 27,099
Retained earnings 11,371 8,357
Total patrons' and other equity 264,434 234,006
Contingencies (note 5)
$1,057,838 1,080,655
See Accompanying Notes to Consolidated Financial Statements.
</TABLE>
<TABLE>
Page 2
GOLD KIST INC.
CONSOLIDATED STATEMENTS OF OPERATIONS
AND COMPREHENSIVE INCOME
(Amounts in Thousands)
(Unaudited)
<CAPTION>
Three Months Ended
Sept. 26, Sept. 27,
1998 1997
<S> <C> <C>
Net sales volume $480,855 419,067
Cost of sales 395,733 444,972
Gross margins (loss) 85,122 (25,905)
Distribution, administrative and general
expenses 22,593 16,559
Net operating margins (loss) 62,529 (42,464)
Other income (deductions):
Interest income 645 438
Interest expense (9,512) (4,305)
Equity in earnings of partnership
(note 4) 1,193 845
Miscellaneous, net 1,174 3,670
Total other income (deductions) (6,500) 648
Margins (loss) from continuing
operations before income taxes 56,029 (41,816)
Income tax expense (benefit) 20,199 (14,911)
Margins (loss) from continuing
operations 35,830 (26,905)
Discontinued operations (note 5):
Loss from operations of discontinued
Agri-Services segment (less
applicable income taxes of $3,354
million for 1997) - (6,053)
Net margins (loss) 35,830 (32,958)
Other comprehensive income (loss), net
of tax:
Unrealized holding gains (losses) on
securities arising during period
(less applicable income taxes of
$2,320 for 1998 and $1,452 for 1997) (4,309) 2,697
Comprehensive income (loss) $ 31,521 (30,261)
See Accompanying Notes to Consolidated Financial Statements.
</TABLE>
<TABLE>
Page 3
GOLD KIST INC.
CONSOLIDATED STATEMENTS OF CASH FLOWS
(Amounts in thousands)
(Unaudited)
<CAPTION>
Three Months Ended
Sept. 26, Sept. 27,
1998 1997
<S> <C> <C>
Cash flows from operating activities:
Margins (loss) from continuing operations $ 35,830 (26,905)
Non-cash items included in margins (loss)
from continuing operations:
Depreciation and amortization 9,996 8,354
Equity in earnings of partnership (1,193) (845)
Deferred income tax expense (benefit) 20,344 (1,697)
Other (2,909) (297)
Changes in operating assets and liabilities:
Receivables (16,408) 327
Inventories 10,225 4,328
Commodities margin deposits - 39,666
Other current assets (13,125) (12,955)
Accounts payable and accrued expenses 7,982 2,454
Interest left on deposit 1,190 (487)
Net cash provided by operating activities
of continuing operations 51,932 11,943
Net cash provided by operating activities
of discontinued operations 28,707 1,022
Net cash provided by operating activities 80,639 12,965
Cash flows from investing activities:
Acquisitions of property, plant and equipment (7,953) (16,818)
Acquisition of subsidiary minority interest - (53,104)
Other 3,500 6,281
Net cash used in investing activities of
continuing operations (4,453) (63,641)
Net cash used in investing activities of
discontinued operations - acquisitions of
property, plant and equipment - (2,973)
Net cash used in investing activities (4,453) (66,614)
Cash flows from financing activities:
Short-term borrowings (repayments), net (114,159) 13,218
Proceeds from long-term debt 79,897 81,509
Principal payments of long-term debt (28,766) (40,911)
Patronage refunds and other equity paid in cash (1,093) (1,159)
Net cash provided by (used in) financing activities (64,121) 52,657
Net change in cash and cash equivalents 12,065 (992)
Cash and cash equivalents at beginning of period 11,789 17,921<PAGE>
Cash and cash equivalents at end of period $ 23,854 16,929
Supplemental disclosure of cash flow data:
Cash paid during the periods for:
Interest (net of amounts capitalized) $ 15,623 8,955
Income taxes $ - -
See Accompanying Notes to Consolidated Financial Statements.
</TABLE>
Page 4
GOLD KIST INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(Amounts in Thousands)
(Unaudited)
1. The accompanying unaudited consolidated financial
statements reflect the accounts of Gold Kist Inc. and its
subsidiaries ("Gold Kist" or the "Association"). These
consolidated financial statements should be read in
conjunction with Management's Discussion and Analysis of
Consolidated Results of Operations and Financial Condition
and the Notes to Consolidated Financial Statements on
pages 13 through 17 and pages 22 through 39, respectively,
of Gold Kist's Annual Report in the previously filed Form
10-K for the year ended June 27, 1998.
2. In the opinion of management, the accompanying unaudited
consolidated financial statements contain all adjustments
(consisting of normal recurring accruals) necessary to
present fairly the financial position, the results of
operations, and the cash flows. All significant
intercompany balances and transactions have been
eliminated in consolidation. Results of operations for
interim periods are not necessarily indicative of results
for the entire year.
3. Inventories consist of the following:
<TABLE>
<CAPTION>
Sept. 26, 1998 June 27, 1998
<S> <C> <C>
Live poultry and hogs $ 91,777 94,005
Marketable products 40,035 45,081
Raw materials and supplies 32,167 35,118
$163,979 174,204
</TABLE>
4. Gold Kist has a 33% interest in Golden Peanut Company, a
Georgia general partnership. Gold Kist's investment in the
partnership was $19.0 million at September 26, 1998 and
$22.7 million at June 27, 1998. In July 1998, the
Association received a distribution of $4.4 million from
the partnership.
Summarized operating statement information of Golden Peanut
Company is shown below:
<TABLE>
<CAPTION>
Three Months Ended
Sept. 30, Sept. 30,
1998 1997
<S> <C> <C>
Net sales and other operating
income $94,049 81,000
Costs and expenses 90,470 78,466
Net earnings $ 3,579 2,534
</TABLE>
Page 5
5. In October 1998, the Association completed the sale of
assets of the Agri-Services segment to Southern States
Cooperative, Inc. (Southern States). Proceeds of $218.1
million from the sale represented an amount equal to $39.9
million plus 100% of estimated net current asset value less
the remaining obligations under an industrial development
bond and a lease obligation. The Association anticipates a
post-closing settlement of actual net current asset value
with Southern States in early 1999. Net sales volume of the
Agri-Services segment was $131.9 million and $138.9 million,
respectively, for the quarter ended September 26, 1998 and
September 27, 1997.
In order to complete the transaction with Southern States,
the Association committed to purchase, subject to certain
terms and conditions, from Southern States up to $100
million principal amount of preferred securities if
Southern States is unable to market the securities to other
purchasers by April 1999. The preferred securities, if
purchased, will carry an initial weighted average dividend
rate of 7.8%. The Association will have no obligation to
purchase the preferred securities if Southern States places
with other purchasers similar capital and or equity
securities. To the extent Southern States places with
other purchasers capital and or equity securities similar
to the preferred securities in an amount less than $100
million, the Association's commitment to purchase preferred
securities shall be reduced correspondingly on a dollar-
for-dollar basis. The Association has established a $100
million irrevocable direct pay letter of credit to secure
its contingent obligation. There are no assurances that
Southern States will be able to market such securities and
relieve the Association of its commitment to purchase such
securities.
Page 6
ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS
OF RESULTS OF OPERATIONS
AND FINANCIAL CONDITION
RESULTS OF OPERATIONS
Net Sales Volume
For the three month period ended September 26, 1998, net sales
volume increased 14.7% to $480.9 million from $419.1 million in
the comparable period last year. The increase in net sales
volume was due primarily to a 7.3% increase in average poultry
selling prices and a 7.9% increase in poultry pounds sold. The
increase in average selling prices was attributed to the
reduction in the rate of industry growth. The increase in pounds
sold was primarily due to changes in product mix and improvements
in processing capacity utilization.
Net Operating Margins (Loss)
The Association had net operating margins of $62.5 million for
the quarter ended September 26, 1998 as compared to a net
operating loss of $42.5 million in the comparable period last
year. The improvement in operating margins was due to the
increase in poultry market prices discussed above and lower feed
ingredient costs. Feed ingredient costs for the quarter ended
September 26, 1998 declined 41% as compared to the quarter
ending September 27, 1997. Corn and soybean meal cash market
prices decreased substantially as a result of the favorable 1998
grain harvest and reduced foreign demand for U.S. grains. The
increase in distribution, administrative and general expenses for
the three months ended September 26, 1998 reflected the increase
in incentive compensation expenses related to the increase in net
margins.
Other Income (Deductions)
Interest expense was $9.5 million for the quarter ended September
26, 1998 as compared to $4.3 million for the comparable period
last year. The increase in interest expense was the result of
increased average borrowings and higher interest rates related to
the decline in the Association's financial condition during the
fiscal year ended June 27, 1998.
Equity in the earnings of the partnership of approximately $1.2
million represented the Association's pro rata share of Golden
Peanut Company's earnings for the quarter ended September 26,
1998. This compared to a $845,000 pro rata share of the
partnership's earnings for the same quarter a year ago.
Miscellaneous, net was $1.2 million for the three months ended
September 26, 1998 as compared to $3.7 million for the same
period last year. Miscellaneous, net for the quarter ended
September 27, 1997 includes income of $2.0 million related to a
poultry grower agreement. Miscellaneous, net for the three
months ended September 26, 1998 includes dividends of
Page 7
$356,000. For the quarter ended September 26, 1998,
miscellaneous, net reflected a $353,000 gain from the
Association's ownership interest in a pecan processing and
marketing company.
LIQUIDITY AND CAPITAL RESOURCES
The Association's liquidity is dependent upon funds from
operations and external sources of financing. The principal
source of external short-term financing is a secured committed
credit facility with a commercial bank. The primary source of
external long-term financing is a secured revolving credit
facility.
In August 1998, the Association replaced its $440 million secured
committed credit facility with a $500 million credit agreement
with a commercial bank that included a secured $125 million 364-
day line of credit commitment, a secured $125 million three-year
revolving credit facility and a $250 million three-year unsecured
bridge facility. In accordance with terms of the loan
agreements, the $250 million three-year bridge loan was paid on
October 13, 1998 with proceeds of $218.1 million from the sale of
certain assets of the Agri-Services segment and cash provided by
operations. The 364-day line of credit and three-year revolving
facility are secured by inventories, receivables and certain
property, plant and equipment of the Association. At September
26, 1998, the Association had unused loan commitments of $230.0
million.
Covenants under the terms of the loan agreements with lenders
include conditions that could limit short-term and long-term
financing available from various external sources. The terms
require a ratio of current assets to current liabilities of not
less than 1.25 to 1 and the ratio of total funded debt to total
capitalization not to exceed 65%. At September 26, 1998, the
Association's current ratio and ratio of total funded debt to
capitalization, determined under the loan agreements, were 1.46
to 1 and 64%, respectively. The terms of the loan agreements
require specific quarterly fixed charge coverage ratios during
fiscal 1999 and a fixed charge ratio for fiscal 1999 of 150%. In
addition, the terms place a limitation on capital expenditures,
equity distributions, cash patronage refunds and commodity hedging
contracts that include cash forward purchases, as well as futures
and certain option contracts. At September 26, 1998, the
Association was in compliance with the loan agreements.
Working capital and the current ratio were $189.1 million and
1.46 to 1, respectively, at September 26, 1998, as compared to
$149.6 million and 1.32 to 1, respectively, at June 27, 1998.
Patrons equity at September 26, 1998 was $264.4 million as
compared to $234.0 million at June 27, 1998. The increase in
patron's equity was the result of net margins of $35.8 million
which were partially offset by the $4.3 million unrealized
holding loss on marketable equity securities and equity
redemptions for the quarter ended September 26, 1998. Cash and
cash equivalents were approximately $23.9 million at September
26, 1998. Net cash provided by operations reflected the
improvements in poultry operating margins and net cash provided
by discontinued operations. Cash provided by operations was used
to repay short and long-term borrowings.<PAGE>
Page 8
In October 1998, the Association completed the sale of assets of
the Agri-Services segment to Southern States Cooperative, Inc.
(Southern States). Proceeds of $218.1 million from the sale
represented an amount equal to $39.9 million plus 100% of
estimated net current asset value less the remaining obligations
under an industrial development bond and a lease obligation. The
Association anticipates a post-closing settlement of actual net
current asset value with Southern States in early 1999.
In order to complete the transaction with Southern States, the
Association committed to purchase, subject to certain terms and
conditions, from Southern States up to $100 million principal
amount of preferred securities if Southern States is unable to
market the securities to other purchasers by April 1999. The
preferred securities, if purchased, will carry an initial
weighted average dividend rate of 7.8%. The Association will
have no obligation to purchase the preferred securities if
Southern States places with other purchasers similar capital and
or equity securities. To the extent Southern States places with
other purchasers capital and or equity securities similar to the
preferred securities in an amount less than $100 million, the
Association's commitment to purchase preferred securities shall
be reduced correspondingly on a dollar-for-dollar basis. If
necessary, the Association plans to use its existing secured
committed credit facility to fund the purchase of the preferred
securities. The Association has established a $100 million
irrevocable direct pay letter of credit to secure its contingent
obligation. There are no assurances that Southern States will
be able to market such securities and relieve the Associa-
tion of its commitment to purchase such securities.
The Association plans capital expenditures of approximately $45
million in 1999 that primarily include expenditures for expansion
and technological advances in poultry production and processing.
In addition, planned capital expenditures include other asset
improvements and necessary replacements. Management intends to
finance planned 1999 capital expenditures and related working
capital needs with existing cash balances and net margins
adjusted for non-cash items and additional long-term borrowings,
as needed. In 1999, management expects cash expenditures to
approximate $4.0 million for equity distributions. In connection
with the sale of assets of the Agri-Services segment to Southern
States and the plan to discontinue operations of the Agri-
Services segment during fiscal 1999, Gold Kist discontinued the
sale of Subordinated Certificates in October 1998. The Associa-
tion believes cash and cash equivalents at September 26, 1998 and
cash expected to be provided from operations, in addition to
borrowings available under existing credit arrangements, will be
sufficient to maintain cash flows adequate for the Association's
projected growth and operational objectives during 1999 and to
fund the repayment of outstanding Subordinated Certificates as
they mature. Approximately $37.0 million of Subordinated
Certificates and accrued interest will mature during the
remaining three quarters of fiscal 1999.
Year 2000 Disclosure Statement
The year 2000 problem is the result of computer programs written
using two digits (rather than four) to define the applicable
year. Any of the
Page 9
Association's programs that have time-sensitive software may
recognize a date using "00" as the year 1900 rather than the
year 2000, which could result in miscalculations or system
failures.
The Association has completed its identification of information
technology systems that are not year 2000 compliant and is in
the process of implementing a comprehensive initiative to make
its information technology systems ("IT" systems) and its non-
information technology systems ("non-IT" systems), including
embedded microprocessors in equipment, refrigeration systems,
feed mills, and environmental controls, year 2000 compliant.
The initiative covers the following three phases: (1)
identification of all IT and non-IT systems and an assessment of
repair requirements, (2) repair of the identified IT and non-IT
systems, and (3) testing of the IT and non-IT systems repaired
to determine correct manipulation of dates and date-related
data. As of July 1, 1998, the Association has completed phase
(1) of its initiative and has begun phase (2). The Association
is scheduled to complete phase (2) by the end of the second
quarter of fiscal 1999 at which time it will commence its final
testing phase. The Association expects the final testing phase
to be complete by third quarter. The Association believes that
it has allocated sufficient resources to resolve all significant
year 2000 issues in the above time frame.
As part of its year 2000 initiative, the Association is also
contacting key suppliers and business partners to evaluate their
year 2000 compliance plans and state of readiness and determine
whether a year 2000 problem will impede the ability of such
suppliers and business partners to provide goods and services as
the year 2000 is approached and reached. The Association has
received responses from a majority of its key trading partners
and is currently assessing their state of compliance. As a
general matter, the Association is vulnerable to key suppliers'
inability to remedy their own year 2000 issues and there can be
no assurance that all date-handling problems in the IT systems of
those suppliers will be identified in advance of their
occurrence.
The Association estimates that its cost of repairing the IT
systems and non-IT systems will range from $500,000 to $700,000.
To date, the Association has yet to fully assess any additional
costs that may be incurred to complete the testing phase of the
year 2000 initiative and resolve any problems identified during
that phase. The Association believes such costs will not have a
material effect on liquidity or its financial condition or
results of operations.
To date, the Association has not identified any IT or non-IT
system that presents a material risk of not being year 2000 ready
or for which a suitable alternative cannot be implemented.
However, as the initiative moves into the testing phase, it is
possible that the Association may identify potential risks of
year 2000 disruption. It is also possible that such a disruption
could have a material adverse effect on the financial condition
and results of operations. In addition, if any third parties who
provide goods or services that are critical to the Association's
business activities fail to appropriately address their year 2000
issues, there could be a material adverse effect on the
Association's financial condition and results of operations.
Page 10
Because the Association has not begun the testing phase of its
initiative, and, accordingly, has not fully assessed its risks
from potential year 2000 failures, the Association has not yet
fully developed year 2000 specific contingency plans. These
plans will be developed as appropriate, if the results of testing
identify a material business function that is substantially at
risk.
Important Considerations Related to Forward-Looking Statements
It should be noted that this discussion contains forward-looking
statements which are subject to substantial risks and
uncertainties. There are many factors which could cause actual
results to differ materially from those anticipated by statements
made herein. Such factors include, but are not limited to,
changes in general economic conditions, weather, the growth rate
of the market for the Company's products and services, the
availability of raw inputs, global political events, the ability
of the Association to implement changes in sales strategies and
organization on a timely basis, the affect of competitive
products and pricing, seasonal revenues, a delay in closing the
sale of assets of the Agri-Services segment, as well as a number
of other risk factors which could effect the future performance
of the Association.
Effects of Inflation
The major factor affecting the Association's net sales volume and
cost of sales is the change in commodity market prices for
broilers, hogs and feed grains. The prices of these commodities
are affected by world market conditions and are volatile in
response to supply and demand, as well as political and economic
events. The price fluctuations of these commodities do not
necessarily correlate with the general inflation rate. Inflation
has, however, affected operating costs such as labor, energy and
material costs.
Future Accounting Requirements
In February 1998, the FASB issued SFAS No. 132, "Employers'
Disclosure about Pension and Other Postretirement Benefits" that
revised disclosure requirements for pension and other
postretirement benefits. It does not affect the measurement of
the expense of the Association's pension and other postretirement
benefits. The disclosure requirements of the standard will be
reflected in the Association's 1999 consolidated financial
statements.
In June 1998, the Financial Accounting Standards Board issued
Statement No. 133 "Accounting for Derivative Instruments and
Hedging Activities." The Statement requires the recognition of
all derivatives on the balance sheet at fair value. The
Company's derivatives, which include agricultural related futures
and options, are specifically designated as hedges. Changes in
the fair value of these derivatives will either be offset against
the change in fair value of the corresponding hedged assets,
liabilities, or firm commitments through earnings or reflected as
other comprehensive income until the hedged item is recognized in
earnings. The disclosure requirements of the Standard will be
reflected in the Association's 2000
Page 11
until the hedged item is recognized in earnings. The disclosure
requirements of the Standard will be reflected in the Associa-
tions 2000 consolidated financial statements.
Item 3. Quantitative And Qualitative Disclosure About Market Risks.
Market Risk
The principal market risks affecting the Association are exposure
to changes in commodity prices and interest rates on borrowings.
Although the Association has international net sales volume and
related accounts receivable for foreign customers, it considers
the foreign currency exchange risk in such activities to be
immaterial.
Interest Rate Risk
The Association uses interest rate swaps to hedge interest rate
changes on a portion of its borrowings. At September 26, 1998,
the Association had $150 million notional value of interest rate
swaps outstanding. The swaps effectively change the average
interest rates on $150 million of floating rate debt to a 5.97%
fixed rate from LIBOR. Assuming year-end fiscal 1998 variable
rates and borrowings at September 26, 1998, a one-hundred-basis-
point change in interest rates would impact the Association's net
interest expense by approximately $2.0 million, net of the effect
of the swaps.
Commodities Risk
The Association is a purchaser of certain agricultural
commodities used for the manufacture of poultry feeds. The
Association uses commodity futures and options for hedging
purposes to reduce the effect of changing commodity prices on a
portion of its commodity inventories and related purchase and
sale contracts. Feed ingredients futures contracts, primarily
corn and soybean meal, are recognized when closed and option
contracts are accounted for at market. Gains and losses on the
transactions are recorded as a component of product cost. Terms
of the Association's committed secured credit facility limit the
use of cash forward contracts and commodities futures and options
to hedge no more than thirteen weeks of the Association's soybean
meal and corn requirements. At September 26, 1998, the fair
value of the Association's outstanding commodity futures and
options positions was not material.
Page 12
PART II: OTHER INFORMATION
Item 6. Exhibits and Reports on Form 8-K.
(a) Exhibit
Designation of Exhibit
in this Report Description of Exhibit
27 Financial Data Schedule
(b) Reports on Form 8-K. Gold Kist has not filed any
reports on Form 8-K during the three months
ended September 26, 1998.
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.
GOLD KIST INC.
(Registrant)
Date November 10, 1998
Gaylord O. Coan
Chief Executive Officer
(Principal Executive Officer)
Date November 10, 1998
Walter F. Pohl, Jr.
Controller
(Principal Accounting Officer)
Page 12
PART II: OTHER INFORMATION
Item 6. Exhibits and Reports on Form 8-K.
(a) Exhibit
Designation of Exhibit
in this Report Description of Exhibit
27 Financial Data Schedule
(b) Reports on Form 8-K. Gold Kist has not filed any
reports on Form 8-K during the three months
ended September 26, 1998.
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.
GOLD KIST INC.
(Registrant)
Date November 10, 1998 /s/ Gaylord O. Coan
Gaylord O. Coan
Chief Executive Officer
(Principal Executive Officer)
Date November 10, 1998 /s/ Walter F. Pohl, Jr.
Walter F. Pohl, Jr.
Controller
(Principal Accounting Officer)
<TABLE> <S> <C>
<ARTICLE> 5
<1000>
<S> <C>
<PERIOD-TYPE> 3-MOS
<FISCAL-YEAR-END> JUN-26-1999
<PERIOD-END> SEP-26-1998
<CASH> 23,854
<SECURITIES> 0
<RECEIVABLES> 127,478
<ALLOWANCES> 1,501
<INVENTORY> 163,979
<CURRENT-ASSETS> 602,117
<PP&E> 600,923
<DEPRECIATION> 346,790
<TOTAL-ASSETS> 1,057,838
<CURRENT-LIABILITIES> 413,019
<BONDS> 323,116
0
0
<COMMON> 33
<OTHER-SE> 264,401
<TOTAL-LIABILITY-AND-EQUITY> 1,057,838
<SALES> 480,855
<TOTAL-REVENUES> 483,867
<CGS> 395,733
<TOTAL-COSTS> 395,733
<OTHER-EXPENSES> 0
<LOSS-PROVISION> 171
<INTEREST-EXPENSE> 9,512
<INCOME-PRETAX> 56,029
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</TABLE>
