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 December 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 -
December 26, 1998 and June 27, 1998 ... 1
Consolidated Statements of Operations
Three Months and Six Months Ended
December 26, 1998 and December 27, 1997 2
Consolidated Statements of Cash Flows -
Six Months Ended December 26, 1998
and December 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
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>
<
Dec. 26, June 27,
1998 1998
<STUB>
ASSETS <C> <C>
Current assets:
Cash and cash equivalents $ 9,013 11,789
Receivables, principally trade,
less allowance for doubtful
accounts of $3,602 at
December 26, 1998 and $3,113
at June 27, 1998 106,785 107,957
Inventories (note 3) 174,468 174,204
Deferred income taxes 17,229 45,431
Other current assets 26,969 32,673
Net assets of discontinued operations 12,488 247,621
Total current assets 346,952 619,675
Investments 120,785 125,623
Property, plant and equipment, net 254,125 255,791
Other assets 75,386 79,566
$797,248 1,080,655
LIABILITIES AND EQUITY
Current liabilities:
Notes payable and current maturities of
long-term debt:
Short-term borrowings $ 58,085 201,939
Subordinated loan certificates 28,047 35,005
Current maturities of long-term debt 18,166 93,248
104,298 330,192
Accounts payable 84,519 85,188
Accrued compensation and related expenses 43,248 32,466
Interest left on deposit 10,913 11,451
Other current liabilities 11,545 10,799
Total current liabilities 254,523 470,096
Long-term debt, excluding current maturities 196,623 320,600
Accrued postretirement benefit costs 51,238 48,678
Other liabilities 7,110 7,275
Total liabilities 509,494 846,649
Patrons' and other equity:
Common stock, $1.00 par value - Authorized
500 shares; issued and outstanding 33 at
December 26, 1998 and June 27, 1998 33 33
Patronage reserves 249,733 198,517
Unrealized gain on marketable equity
security (net of deferred income taxes
of $12,998 at December 26, 1998 and
$14,592 at June 27, 1998) 24,139 27,099
Retained earnings 13,849 8,357
Total patrons' and other equity 287,754 234,006
Contingencies (note 5)
$797,248 1,080,655
See Accompanying Notes to Consolidated Financial Statements.
</TABLE>
<TABLE>
Page 2
GOLD KIST INC.
CONSOLIDATED STATEMENTS OF OPERATIONS
(Amounts in Thousands)
(Unaudited)
<CAPTION>
Three Months Ended Six Months Ended
Dec. 26, Dec. 27, Dec. 26, Dec. 27,
1998 1997 1998 1997
<STUB> <C> <C> <C> <C>
Net sales volume $434,282 403,135 915,137 822,202
Cost of sales 378,766 430,360 774,499 875,332
Gross margins (loss) 55,516 (27,225) 140,638 (53,130)
Distribution, administrative
and general expenses 19,103 15,566 41,696 32,125
Net operating margins (loss) 36,413 (42,791) 98,942 (85,255)
Other income (deductions):
Interest income 410 598 1,055 1,036
Interest expense (3,941) (6,162) (13,453) (10,467)
Equity in earnings of
partnership (note 4) 693 652 1,886 1,497
Miscellaneous, net 926 1,154 2,100 4,824
Total other deductions (1,912) (3,758) (8,412) (3,110)
Margins (loss) from continuing
operations before income taxes 34,501 (46,549) 90,530 (88,365)
Income tax expense(benefit) 11,606 (16,534) 31,805 (31,445)
Margins(loss) from continuing
operations 22,895 (30,015) 58,725 (56,920)
Discontinued operations (note 5):
Loss from operations of dis-
continued Agri-Services segment
(less applicable income taxes
of $4,603 and $7,957, respec-
tively, for the three and six
months ended December 27, 1997 - (8,725) - (14,778)
Net margins (loss) 22,895 (38,740) 58,725 (71,698)
See Accompanying Notes to Consolidated Financial Statements.
</TABLE>
<TABLE>
Page 3
GOLD KIST INC.
CONSOLIDATED STATEMENTS OF CASH FLOWS
(Amounts in thousands)
(Unaudited)
<CAPTION>
Six Months Ended
Dec. 26, Dec. 27,
1998 1997
<STUB> <C> <C>
Cash flows from operating activities:
Margins (loss) from continuing operations $ 58,725 (56,920)
Non-cash items included in margins (loss)
from continuing operations:
Depreciation and amortization 20,175 17,490
Equity in earnings of partnership (1,886) (1,497)
Deferred income tax expense (benefit) 29,366 (1,592)
Other (921) 31
Changes in operating assets and liabilities:
Receivables 683 3,533
Inventories (264) 4,093
Other current assets 2,401 (4,072)
Accounts payable and accrued expenses 14,160 8,014
Interest left on deposit (538) (88)
Net cash provided by (used in) operating
activities of continuing operations 121,901 (31,008)
Net cash provided by (used in) operating
activities of discontinued operations 16,820 (76,649)
Net cash provided by (used in) operating
activities 138,721 (107,657)
Cash flows from investing activities:
Acquisitions of property, plant and equipment (17,681) (28,282)
Acquisition of subsidiary minority interest - (53,104)
Other 9,759 8,877
Net cash used in investing activities of
continuing operations (7,922) (72,509)
Net cash used in investing activities of
discontinued operations:
Acquisitions of property, plant and equipment - (5,228)
Proceeds from sale of the Agri-Services segment 218,313 -
Net cash provided by (used in) investing
activities of discontinued operations 218,313 (5,228)
Net cash provided by (used in) investing
activities 210,391 (77,737)
Cash flows from financing activities:
Short-term repayments, net (150,812) (34,949)
Proceeds from long-term debt 83,891 263,115
Principal repayments of long-term debt (282,950) (41,950)
Patronage refunds and other equity paid in cash (2,017) (1,615)
Net cash provided by (used in) financing activities(351,888) 184,601
Net change in cash and cash equivalents (2,776) (793)
Cash and cash equivalents at beginning of period 11,789 17,921
Cash and cash equivalents at end of period $ 9,013 17,128
Supplemental disclosure of cash flow data (Note 7)
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>
Dec. 26, 1998 June 27, 1998
<STUB> <C> <C>
Live poultry and hogs $ 89,872 94,005
Marketable products 48,809 45,081
Raw materials and supplies 35,787 35,118
$174,468 174,204
</TABLE>
4. Gold Kist has a 33% interest in Golden Peanut Company, a
Georgia general partnership. Gold Kist's investment in the
partnership was $20.2 million at December 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 Six Months Ended
Dec. 26, Dec. 27, Dec. 26, Dec. 27,
1998 1997 1998 1997
<STUB> <C> <C> <C> <C>
Net sales and other
operating income $116,266 88,655 210,315 169,655
Costs and expenses 114,187 86,699 204,657 165,164
Net earnings $ 2,079 1,956 5,658 4,491
</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 $218.3
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 assumed by Southern States. The
Association anticipates a post-closing settlement of actual
net current asset value with Southern States in fiscal 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. 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.
6.Effective June 28, 1998, the Association adopted SFAS No.
130, "Reporting Comprehensive Income." This statement
establishes items that are required to be recognized under
accounting standards as components of comprehensive income.
SFAS No. 130 requires, among other things, that an
enterprise report a total for comprehensive income in
condensed financial statements of interim periods. For the
three month and six month periods ended December 26, 1998
and December 27, 1997, the Association's consolidated
comprehensive income was $24.2 million and $55.8 million,
respectively. For the six month periods ended December 26,
1998 and December 27, 1997, the Association's consolidated
comprehensive loss was $45.5 million and $74.8 million,
respectively. The difference between consolidated
comprehensive income, as disclosed here, and traditionally-
determined consolidated net margins (loss), as set forth on
the accompanying Condensed Consolidated Statements of
Operations, results from unrealized holding gains (losses)
on securities less applicable income taxes.
7.The Association incurred cash payments for interest (net of
amounts capitalized) of $22.5 million and $18.0 million,
respectively, for the six months ended December 26, 1998 and
December 27, 1997, respectively. The Association did not
incur income tax payments for the periods presented.
Page 6
ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS
OF RESULTS OF OPERATIONS
AND FINANCIAL CONDITION
RESULTS OF OPERATIONS
Net Sales Volume
Gold Kist net sales volume of $434.3 million for the three months
ended December 26, 1998 increased 7.7% or $31.1 million as
compared to the same period a year ago. The increase in net
sales volume for the three months ended December 26, 1998 was
primarily the result of a 5.9% increase in average selling prices
and a 6.0% increase in pounds of poultry sold. Net sales volume
of $915.1 million for the six months ended December 26, 1998
increased 11.3% or $92.9 million as compared to the same period a
year ago. The net sales volume increase for the six months ended
December 26, 1998 was primarily the result of a 6.8% increase in
average selling prices and a 7.1% increase in pounds of poultry
sold. The impact of these factors on net sales volume was
partially offset by lower average selling prices for live hogs
and feeder pigs.
Higher domestic poultry market prices during the six months ended
December 26, 1998 were attributable to a reduction in the growth
of industry wide broiler production. The production decline was
attributed to problems in the breeder flocks that restricted live
broiler production, as well as hot summer weather that reduced
broiler growth rates in the Southeast. During the current six
month period, market prices for dark meat, which represent about
30% of the value of broilers, have declined as a result of the
Russian and Asian economic crises that began in the summer of
1998.
Net Operating Margins (Loss)
The Association had net operating margins of $36.4 million for
the three months ended December 26, 1998 as compared to a net
operating loss of $42.8 million in the comparable period last
year. Net operating margins for the six months ended December
26, 1998 were $98.9 million as compared to a net operating loss
of $85.3 million for the same six month period a year ago. The
improvements in operating margins were due to the increase in
poultry market prices discussed above and lower feed ingredient
costs. Feed ingredient costs for the three and six months ended
December 26, 1998 declined 36.0% and 38.7%, respectively, as
compared to the three and six months ended December 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. Higher distribution,
administrative and general expenses for the three months and six
months ended December 26, 1998 reflected the increase in
incentive compensation expenses related to the increase in net
margins.
Page 7
Other Income (Deductions)
Interest expense of $3.9 million for the three months ended
December 26, 1998 declined $2.3 million as compared to the
comparable period a year ago as a result of lower borrowings.
Reduced debt levels resulted from the sale of the Agri-Services
segment in October 1998 and the improvement in net cash flow from
operations. The impact of the decline in borrowings was
partially offset by higher interest rates related to a
weakening in the financial condition of the Association during
the fiscal year ended June 27, 1998. Interest expense for the
six months ended December 26, 1998 was $13.5 million as compared
to $10.5 million for the six months ended December 27, 1997. The
increase was due to higher interest rates and increased average
borrowings during the six months ended December 26, 1998 related
to the decline in Gold Kist's financial condition during the
prior fiscal year.
Equity in the earnings of the partnership of approximately
$693,000 and $1.9 million represented the Association's pro rata
share of Golden Peanut Company's earnings for the three and six
months ended December 26, 1998, respectively. This compared to a
$652,000 and $1.5 million, respectively, pro rata share of the
partnership's earnings for the comparable periods a year ago.
Miscellaneous, net was $926,000 for the three months ended
December 26, 1998 as compared to $1.2 million for the same period
last year. Miscellaneous, net for the three months ended December
26, 1998 includes dividends of $166,000. For the quarter ended
December 26, 1998, miscellaneous, net reflected a $301,000 gain
from the Association's ownership interest in a pecan processing
and marketing company. Miscellaneous, net for the six months
ended December 26, 1998 was $1.6 million as compared to $4.7
million for the same period a year ago. Miscellaneous, net for
the six months ended December 27, 1997 includes income of $2.0
million related to a poultry grower agreement.
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 December
26, 1998, the Association had unused loan commitments of $250.0
million.
Page 8
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 December 26, 1998, the
Association's current ratio and ratio of total funded debt to
capitalization, determined under the loan agreements, were 1.36
to 1 and 52%, 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 1.50 to
1. 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 December 26,
1998, the Association was in compliance with the loan agreements.
Working capital and the current ratio were $92.4 million and 1.36
to 1, respectively, at December 26, 1998, as compared to $149.6
million and 1.32 to 1, respectively, at June 27, 1998. Patrons
equity at December 26, 1998 was $287.8 million as compared to
$234.0 million at June 27, 1998. The increase in patron's equity
was the result of net margins of $58.7 million which were
partially offset by the $3.0 million unrealized holding loss on
marketable equity securities and equity redemptions of $2.0
million for the six months ended December 26, 1998. Net cash
provided by operations reflected the improvements in poultry
operating margins and proceeds from the sale of assets of the
Agri-Services segment. Cash provided by operations was used to
repay short and long-term borrowings.
In October 1998, the Association completed the sale of assets of
the Agri-Services segment to Southern States Cooperative, Inc.
(Southern States). Proceeds of $218.3 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 by the end of fiscal
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
purchase of the preferred securities by the Association may
result in an additional loss in discontinued operations for
fiscal 1999 if the securities' fair values are less than the
purchase amount. See Note 5 of Notes to Consolidated Financial
Statements.
The Association plans capital expenditures of approximately $45
million in 1999 that 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, 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
Page 9
payments. In connection with the sale of assets of the Agri-
Services segment to Southern States, Gold Kist discontinued the
sale of Subordinated Certificates in October 1998. The
Association believes cash and cash equivalents at December 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 $26.9 million of
Subordinated Certificates and accrued interest will mature during
the remaining two quarters of fiscal 1999.
Year 2000 Disclosure Statement
The year 2000 issue is the result of computer programs written
using two digits (rather than four) to define the applicable
year. Any of the 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. The Association has completed phase (1) and expects to
complete phase (2) by the end of fiscal 1999. The Association
expects the final testing phase to be complete by October 1999.
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
Page 10
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.
Because the Association has not completed 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 Association'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, 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 Financial Accounting Standards Board (FASB)
issued Statement of Financial Accounting Standards (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
Page 11
standard will be reflected in the Association's 1999 consolidated
financial statements. In June 1998, the FASB issued SFAS No. 133
"Accounting for Derivative Instruments and Hedging Activities."
The Statement requires the recognition of all derivative
instruments on the balance sheet at fair value. The
Association's derivative instruments, which include agricultural
related futures and options, are specifically designated as
hedges. Changes in the fair value of these derivative
instruments 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 Statement will be reflected in
the Association's 2000 consolidated financial statements.
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 December 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 February 9, 1999
Gaylord O. Coan
Chief Executive Officer
(Principal Executive Officer)
Date February 9, 1999
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
December 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 February 9, 1999 /s/ Gaylord O. Coan
Gaylord O. Coan
Chief Executive Officer
(Principal Executive Officer)
Date February 9, 1999 /s/ Walter F. Pohl, Jr.
Walter F. Pohl, Jr.
Controller
(Principal Accounting Officer)<PAGE>
<TABLE> <S> <C>
<ARTICLE> 5
<1000>
<S> <C>
<PERIOD-TYPE> 6-MOS
<FISCAL-YEAR-END> JUN-26-1999
<PERIOD-END> DEC-26-1998
<CASH> 9,013
<SECURITIES> 0
<RECEIVABLES> 110,387
<ALLOWANCES> 3,602
<INVENTORY> 174,468
<CURRENT-ASSETS> 346,952
<PP&E> 611,116
<DEPRECIATION> 356,991
<TOTAL-ASSETS> 797,248
<CURRENT-LIABILITIES> 254,523
<BONDS> 196,623
0
0
<COMMON> 33
<OTHER-SE> 287,721
<TOTAL-LIABILITY-AND-EQUITY> 797,248
<SALES> 915,137
<TOTAL-REVENUES> 920,178
<CGS> 774,499
<TOTAL-COSTS> 774,499
<OTHER-EXPENSES> 0
<LOSS-PROVISION> 489
<INTEREST-EXPENSE> 13,453
<INCOME-PRETAX> 90,530
<INCOME-TAX> 31,805
<INCOME-CONTINUING> 58,725
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 58,725
<EPS-PRIMARY> 0
<EPS-DILUTED> 0
<PAGE>
</TABLE>
