FORM 10-K/A
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
(Mark One)
(X) ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934 (FEE REQUIRED)
For the fiscal year ended April 29, 1994
OR
( ) TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934 (NO FEE REQUIRED)
For the transition period from ____________ to ____________
Commission File Number 0-1667
Bob Evans Farms, Inc.
(Exact name of registrant as specified in its charter)
Delaware 31-4421866
(State or other jurisdiction of (I.R.S. Employer
incorporation or organization) Identification No.)
3776 South High Street, Columbus, Ohio 43207
(Address of principal executive offices) (Zip Code)
Registrant's telephone number, including area code: 614-491-2225
Securities registered pursuant to Section 12(b) of the Act:
None
Securities registered pursuant to Section 12(g) of the Act:
Common Stock with $.01 par value
(Title of Class)
Page 1 of 6 Pages.
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 of the past 90 days. Yes X No ___
Indicate by check mark if disclosure of delinquent filers
pursuant to Item 405 of Regulation S-K is not contained herein,
and will not be contained, to the best of registrant's knowledge,
in definitive proxy or information statements incorporated by
reference in Part III of this Form 10-K or any amendment to this
Form 10-K. (X)
State the aggregate market value of the voting stock held by non-
affiliates of the registrant. The aggregate market value has
been computed by reference to the last quoted sale price of such
stock, as of June 17, 1994.
Total shares outstanding 42,156,005
Number of shares owned beneficially and/or of 2,986,261
record by directors and executive officers*
Number of shares held by persons other than 39,169,744
directors and executive officers
Last quoted sale price $21.75
Market value of shares held by persons other $851,941,932.00
than directors and executive officers
*For purposes of this computation, all executive officers and
directors are included, although not all are necessarily
"affiliates."
Indicate the number of shares outstanding of each of the
registrant's classes of common stock, as of the latest
practicable date:
42,156,005 shares of Common Stock with $.01 par value were
outstanding at June 17, 1994
DOCUMENTS INCORPORATED BY REFERENCE
1. Annual Report to Stockholders for the
Fiscal Year Ended April 29, 1994 (in
pertinent part, as indicated) PART II.
2. Proxy Statement dated July 1, 1994 for
the Annual Meeting of Stockholders to
be held on August 8, 1994 (in pertinent
part, as indicated) Part III.
PART II
Item 7. Management's Discussion and Analysis of Financial
Condition and Results of Operation.
Sales
Total sales for Bob Evans Farms, Inc. and subsidiaries
increased seven percent in 1994 over 1993. This compares with a
17% increase in 1993. Fiscal year 1994 was composed of 52 weeks,
whereas there were 53 weeks in fiscal year 1993.
Restaurant sales accounted for 71% of total sales in
1994 and 70% of total sales in 1993. Sales in the restaurant
segment increased by $37.7 million, or eight percent, in 1994
compared to 1993, and by $59.8 million, or 15%, in 1993 compared
to 1992. These increases were due mainly to more restaurants in
operation. During 1994, 23 new restaurants were opened: 11 traditional
Bob Evans and Owens Family Restaurants, eight "small-town" Bob Evans
Restaurants and four Cantina del Rios. Two of the Cantina del Rio
openings were in Livonia, Michigan, and Lisle, Illinois, the first
locations outside of Ohio for the company's casual-theme concept.
Also affecting comparisons were increases in same-store sales
(restaurants open for a full 12 months in 1994 and 1993). For
1994, the increase in same-store sales was 3.0% compared to 3.2%
in 1993. Menu prices increased 2.7% in 1994 and 3.4% in 1993.
Food products sales accounted for 29% of total sales in
1994 and 30% of total sales in 1993. Food products segment sales
increased $8.1 million, or four percent, as compared to 1993,
which saw a 23% increase over 1992 sales. The increase was
attributable to higher wholesale prices of sausage products over
a year ago (the benchmark retail price for an one pound roll of
sausage increased from an average of $2.69 per pound in 1993 to
an average of $2.84 per pound in 1994) and improved sales of
Hickory Specialties' charcoal and liquid-smoke flavorings. For
1994, the two newest acquisitions, Mrs. Giles and Hickory
Specialties accounted for $46.7 million in sales, or 23% of food
products sales, compared with $41.1 million in sales, or 21% of
food products sales, in 1993. New product introductions were
immaterial to food products sales as a whole in 1994 and 1993.
The increase in food products sales from 1992 to 1993 was due to
full-year sales comparisons in 1993 of Mrs. Giles and Hickory
Specialties versus a partial year in 1992 (in which the combined
sales were $15.2 million), and increased institutional and food-
service sales of private label and specialty sausage products.
Cost of Sales
As a percentage of sales, the consolidated cost of
sales (cost of materials) was 31.7%, 31.7% and 30.7% in 1994,
1993 and 1992, respectively. The restaurant segment cost of
sales percentage was approximately 27.5% in both 1994 and 1993
as compared to 26.5% in 1992. The increase between 1992 and
1993 was the result of increased food costs in both the third and
fourth quarters of 1993. In the food products segment, cost of
sales increased in 1994 to 41.9% of sales as compared to 41.3% in
both 1993 and 1992 due mostly to higher costs of live hogs and
fresh salad ingredients. Hog costs in 1994 averaged $39.25 per
hundred-weight compared to $37.33 per hundred-weight in 1993.
Operating Expenses
Consolidated operating expenses were 41.9%, 41.8% and
42.8% of sales in 1994, 1993 and 1992, respectively. Restaurant
segment operating expenses decreased slightly from 53% of sales
in 1992 to 52% of sales in both 1994 and 1993. The largest
component in operating expense is labor and fringe benefit expense
which was $201.6 million in 1994 and $189.1 million in 1993. This
increase was mainly due to more restaurants in operation. In the food
products segment, operating expenses as a percentage of sales increased
from 16.3% in 1992 to 16.9% in both 1994 and 1993.
Selling, General and Administrative Expenses
As a percentage of sales, consolidated selling, general
and administrative expenses were 12.2%, 12.8% and 12.3% in 1994,
1993 and 1992, respectively. In the restaurant segment, selling,
general and administrative expenses have remained between 5.5%
and 5.8% of sales in the last three fiscal years. Food products
segment selling, general and administrative expenses represented
28.2%, 29.8% and 28.7% of sales for fiscal years 1994, 1993 and
1992, respectively. Decreased advertising expenditures resulted
in most of the decrease from 1993 to 1994, whereas the increase
from 1992 to 1993 was the result of a full-year inclusion of
Mrs. Giles' and Hickory Specialties' operating results versus a
partial year in 1992.
Taxes
The effective federal and state income tax rates
applicable to the company in 1994, 1993 and 1992 were 37.0%,
37.2% and 37.0%, respectively. As a result of legislation
enacted this past year, changes in the corporate income tax rate
and tax credits are expected to increase the company's effective
tax rate to a range of 38.5% to 39.0% in fiscal year 1995.
Net Income
Net income increased 12% in 1994 compared to 1993. Of
this increase, 74% was attributable to the restaurant segment
having more restaurants in operation in 1994 as compared to 1993.
The remainder of the increase was due to improved margins in
sales of sausage, charcoal and liquid-smoke flavorings as well as
decreased selling, general and administrative expenses in the
food products segment.
Net income increased nine percent in 1993 compared to
1992. Restaurant segment net income increased 16% in 1993
compared to 1992 and accounted for all the company's overall
increase. This increase was mainly related to more restaurants
in operation in 1993 compared to 1992. Food products segment net
income decreased five percent in 1993 compared to 1992. This
decrease was related to decreased margins on sausage products
sold because of higher live hog costs during the third and fourth
quarters as well as narrower margins on both salad and
foodservice products. This decrease was partially offset by the
full-year inclusion of Mrs. Giles' and Hickory Specialties'
operating results in 1993.
Liquidity and Capital Resources
Cash generated from both the restaurant and food
products segments has been used as the main source of funds for
working capital and capital expenditure requirements. Cash and
short-term investments totaled $8.1 million at April 29, 1994,
and $10.2 million at April 30, 1993.
Bank lines of credit were used for liquidity needs and
capital expansion during fiscal year 1994. At April 29, 1994,
$9.5 million was outstanding under such arrangements. The bank
lines of credit available were increased to $53 million during
1994 from $18 million in 1993 to meet liquidity and capital
resource requirements anticipated because of increased restaurant
expansion projected during fiscal year 1995. The company
believes that the funds needed for capital expenditures and
working capital during 1995 will be generated internally and from
available bank lines of credit. Longer-term financing
alternatives will be evaluated by the company, especially in the
event of acquisitions.
At April 29, 1994, the company had contractual
commitments from restaurant construction, plant equipment
additions and land purchases of approximately $17 million.
Anticipated capital expenditures for 1995 will approximate $90
million and depreciation and amortization expense will
approximate $26 million. The company plans to build 49
additional restaurants in fiscal year 1995, as well as upgrade
various property, plant and equipment in both segments.
Dividends paid represented 23% of net income in both
1994 and 1993.
SIGNATURES
Pursuant to the requirements of Section 13 or 15(d) of
the Securities Exchange Act of 1934, the registrant has duly
caused this report on Form 10-K/A to be signed on its behalf by
the undersigned, thereunto duly authorized.
Bob Evans Farms, Inc.
Date: May 15, 1995 By: /s/ Donald J. Radkoski
Donald J. Radkoski, Group
Vice President-Finance Group
and Treasurer
