<PAGE>
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 10-Q
[X] QUARTERLY REPORT PURSUANT TO SECTION 13 OR
15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the quarterly period ended July 27, 1996
-------------------------------------------------
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 1-258
----------------------------------------------------------
JG INDUSTRIES, INC.
- --------------------------------------------------------------------------------
(Exact name of registrant as specified in its charter)
ILLINOIS 36-1141010
- --------------------------------------------------------------------------------
(State or other jurisdiction of (I.R.S. Employer
incorporation or organization) Identification No.)
1615 WEST CHICAGO AVENUE CHICAGO, IL 60622
- --------------------------------------------------------------------------------
(Address of principal executive offices)
(Zip Code)
(312) 850-8000
- --------------------------------------------------------------------------------
(Registrant's telephone number, including area code)
- --------------------------------------------------------------------------------
(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 requirement for the past 90 days.
Yes X No___
---
Common Stock outstanding as of July 27, 1996 - 7,061,890 shares
----------------------------------------------------------------
1
<PAGE>
PART I - FINANCIAL INFORMATION
------------------------------
ITEM 1. FINANCIAL STATEMENTS
Company or group of companies for which report is filed:
JG INDUSTRIES, INC. AND SUBSIDIARIES (Company)
----------------------------------------------
In the opinion of management, all adjustments necessary to fairly present the
condensed consolidated financial position of the Company as of July 27, 1996,
January 27, 1996, and July 29, 1995 and the results of its operations and its
cash flows for the thirteen and twenty-six week periods ended July 27, 1996
(fiscal 1997) and July 29, 1995 (fiscal 1996) have been included. These
adjustments consist solely of normal recurring accruals. The results of
operations for such interim periods are not necessarily indicative of results
for the full year.
Certain information and footnote disclosures normally included in financial
statements prepared in accordance with generally accepted accounting principles
have been condensed or omitted, although the Company believes that the
disclosures are adequate to make the information presented not misleading. It is
suggested that these condensed consolidated financial statements be read in
conjunction with the consolidated financial statements and notes thereto in the
Company's latest Annual Report on Form 10-K.
2
<PAGE>
JG INDUSTRIES, INC. AND SUBSIDIARIES
------------------------------------
CONDENSED CONSOLIDATED BALANCE SHEETS
-------------------------------------
(IN THOUSANDS, EXCEPT SHARE DATA)
(UNAUDITED)
<TABLE>
<CAPTION>
July 27, January 27, July 29,
1996 1996 1995
--------- ------------ ---------
<S> <C> <C> <C>
ASSETS
------
Current Assets:
Cash and cash equivalents $ 3,869 $ 3,792 $ 524
Receivables, net 485 350 20,685
Merchandise inventories 7,481 8,734 31,063
Other current assets 546 335 971
------- ------- --------
Total current assets 12,381 13,211 53,243
------- ------- --------
Land, buildings and equipment, at cost 14,116 23,650 36,058
Less accumulated depreciation
and amortization 8,844 14,347 19,820
------- ------- --------
5,272 9,303 16,238
------- ------- --------
Deferred income taxes 626
Leasehold rights, net 35 69 706
Due from Jupiter 1,265 1,265
Other assets 1,475 1,467 2,049
------- ------- --------
$20,428 $25,315 $ 72,862
======= ======= ========
LIABILITIES, COMMON STOCK AND
- -----------------------------
OTHER SHAREHOLDERS' EQUITY
--------------------------
Current Liabilities:
Notes payable $ 200 $ 2,750
Current portion of long-term debt 627 1,727
Accounts payable $ 3,321 3,875 9,530
Accrued liabilities 2,879 3,195 10,144
Undelivered sales liability 7,837
Deferred income taxes 1,305
------- ------- --------
Total current liabilities 6,200 7,897 33,293
------- ------- --------
Long-term debt, less current portion 131 1,848 11,222
Other long-term liabilities 821 928
Minority interest 1,219 1,173 18,491
Redeemable preferred stock, including
accrued dividends of $980, $754
and $607, respectively 4,163 3,937 3,780
Common stock and other shareholders' equity:
Common shares; no par value;
authorized 10,000,000 shares;
issued 7,217,311 shares 11,246 11,246 11,246
Paid-in capital 4,775 4,775 6,305
Accumulated deficit (6,842) (5,204) (10,205)
Treasury shares - 155,421, 155,322 and
154,821 shares at cost, respectively (1,285) (1,285) (1,280)
------- ------- --------
7,894 9,532 6,066
------- ------- --------
$20,428 $25,315 $ 72,862
======= ======= ========
</TABLE>
The accompanying notes are an integral part of these
condensed consolidated financial statements.
3
<PAGE>
JG INDUSTRIES, INC. AND SUBSIDIARIES
------------------------------------
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
-----------------------------------------------
FOR THE 13 AND 26 WEEK PERIODS ENDED JULY 27, 1996 AND JULY 29, 1995
--------------------------------------------------------------------
(UNAUDITED)
<TABLE>
<CAPTION>
13 WEEKS 26 WEEKS
ENDED ENDED
------------------------- -----------------------
July 27, July 29, July 27, July 29,
1996 1995 1996 1995
---------- ---------- ---------- ---------
(in thousands, except share data)
<S> <C> <C> <C> <C>
Net sales from continuing operations $ 15,715 $ 17,745 $ 31,076 $ 34,286
Cost of sales 10,734 12,176 21,089 23,597
---------- ---------- ---------- ----------
Gross profit 4,981 5,569 9,987 10,689
Selling, general and
administrative expenses 5,941 6,711 11,901 12,950
Provision for store closing 407 407
---------- ---------- ---------- ----------
Operating loss from
continuing operations (1,367) (1,142) (2,321) (2,261)
Interest expense, net (19) (268) (31) (523)
Gain (loss) on sale of asset 1,012 (3) 1,012 (3)
Loss on subsidiary stock
transactions, net (19) (22)
Minority interest in net income
of subsidiary (23) (30) (46) (43)
---------- ---------- ---------- ----------
Loss before income tax provision
and discontinued operations (397) (1,462) (1,386) (2,852)
Income tax provision (12) (11) (26) (22)
---------- ---------- ---------- ----------
Loss before discontinued
operations (409) (1,473) (1,412) (2,874)
Income from discontinued operations 381 479
---------- ---------- ---------- ----------
Net loss $ (409) $ (1,092) $ (1,412) $ (2,395)
========== ========== ========== ==========
Net loss applicable to
common and common
equivalent shares $ (585) $ (1,159) $ (1,638) $ (2,529)
========== ========== ========== ==========
Loss per common share from
continuing operations $ (.08) $ (.22) $ (.23) $ (.43)
========== ========== ========== ==========
Loss per common share $ (.08) $ (.16) $ (.23) $ (.36)
========== ========== ========== ==========
Average number of common
and common equivalent shares
outstanding 7,061,890 7,062,490 7,061,904 7,062,490
========== ========== ========== ==========
</TABLE>
The accompanying notes are an integral part of these
condensed consolidated financial statements.
4
<PAGE>
JG INDUSTRIES, INC. AND SUBSIDIARIES
------------------------------------
CONSOLIDATED STATEMENTS OF COMMON STOCK AND OTHER SHAREHOLDERS' EQUITY
FOR THE FISCAL YEAR ENDED JANUARY 27, 1996,
AND THE QUARTER ENDED JULY 27, 1996
(IN THOUSANDS, EXCEPT SHARE DATA)
(UNAUDITED)
------------
<TABLE>
<CAPTION>
Common Paid-In Accumulated Treasury
Shares Capital Deficit Stock Total
--------- -------- ------------ --------- -------
<S> <C> <C> <C> <C> <C>
Balances, January 28, 1995 $11,242 $ 6,129 $(7,676) $(1,279) $8,416
Net income, fiscal 1996 2,753 2,753
Gain on sale of H-K stock
to Jupiter 176 176
Loss on repurchase of H-K stock
from Jupiter (1,530) (1,530)
Exercise of stock options for
8,000 common shares 4 4
Purchase of 884 common shares (6) (6)
Dividends accrued on
redeemable preferred stock (281) (281)
------- ------- ----------- -------- -------
Balances, January 27, 1996 11,246 4,775 (5,204) (1,285) 9,532
Net loss, twenty-six week
period ended July 27, 1996 (1,412) (1,412)
Dividends accrued on
redeemable preferred stock (226) (226)
------- ------- ----------- -------- -------
Balances, July 27, 1996 $11,246 $ 4,775 $(6,842) $(1,285) $7,894
======= ======= =========== ======== =======
</TABLE>
The accompanying notes are an integral part
of these condensed consolidated financial statements.
5
<PAGE>
JG INDUSTRIES, INC. AND SUBSIDIARIES
------------------------------------
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
-----------------------------------------------
FOR THE QUARTERS ENDED JULY 27, 1996 AND JULY 29, 1995
------------------------------------------------------
(UNAUDITED)
-----------
<TABLE>
<CAPTION>
26 Weeks Ended
---------------------------
July 27, July 29,
1996 1995
---------------------------
(in thousands)
<S> <C> <C>
Cash flows from operating activities:
Net loss $(1,412) $(2,395)
Adjustments to reconcile net loss to net cash used
in operating activities:
Depreciation and amortization 662 1,345
Deferred income taxes 185
Minority interest 46 244
(Gain) loss on sale of asset (1,012) 3
Provision for store closing 407
Loss on issuance of stock by subsidiary 22
Changes in assets and liabilities:
Receivables (200) 3,298
Merchandise inventories (960) (2,072)
Other assets (current) 75 222
Other assets (noncurrent) (8) (64)
Accounts payable and accrued liabilities (1,150) (4,339)
------- -------
Net cash used in operating activities (3,552) (3,551)
------- -------
Cash flows from investing activities:
Proceeds from sale of assets 6,544 1,125
Capital expenditures (240) (1,112)
------- -------
Net cash provided by investing activities 6,304 13
------- -------
Cash flows from financing activities:
Net short-term (repayments) borrowings (200) 2,750
Net borrowings under revolving credit loan 958
Principal payments of long-term debt (2,475) (1,706)
Proceeds from exercise of stock options 4
Proceeds from exercise of stock options at subsidiary 9
Purchase of treasury shares (1)
------- -------
Net cash (used in) provided by financing activities (2,675) 2,014
------- -------
Net increase (decrease) in cash and cash equivalents 77 (1,524)
Cash and cash equivalents at beginning of year 3,792 2,048
------- -------
Cash and cash equivalents at end of twenty-six week period $ 3,869 $ 524
======= =======
</TABLE>
The accompanying notes are an integral part of these
condensed consolidated financial statements.
6
<PAGE>
JG INDUSTRIES, INC. AND SUBSIDIARIES
------------------------------------
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
----------------------------------------------------
(UNAUDITED)
-----------
1) Merchandise inventories are stated at the lower of cost or market. Cost is
determined on the last-in, first-out (LIFO) basis for approximately 88% of
the inventory as of July 27, 1996, January 27, 1996 and July 29, 1995,
using the retail method. The remaining inventory is valued on the first-in,
first-out (FIFO) basis using the retail method. If the FIFO method had been
used to value all inventories, cost would have been $448,000, $406,000, and
$1,945,000 higher at July 27, 1996, January 27, 1996 and July 29, 1995,
respectively.
2) Receivables are presented net of allowances for cancellation reserves and
doubtful accounts of approximately $42,000 at July 27, 1996 and January 27,
1996 and $307,000 at July 29, 1995.
3) Leasehold rights are shown net of accumulated amortization of $37,000 at
July 27, 1996, $31,000 at January 27, 1996 and $2,515,000 at July 29, 1995.
4) Certain reclassifications have been made to the July 29, 1995 amounts in
order to conform to classifications at July 27, 1996 and January 27, 1996.
5) Effective July 11, 1996 Goldblatt's Departments Stores, Inc.
("Goldblatt's", a wholly-owned subsidiary of the Company), sold three of
its properties and its inventory for approximately $6,544,000, net of
expenses. A pre-tax gain of approximately $1,012,000 resulted from this
transaction. Goldblatt's used the proceeds from the transaction to repay
all debt outstanding under its mortgage loan of approximately $1,980,000
plus interest and to repay borrowings on the line of credit of $2,750,000.
6) During fiscal 1995, Sussex Group, Ltd. ("Sussex", an indirect majority
owned subsidiary of the Company), transferred or sold a total of 800,000
shares of Huffman Koos Inc. ("H-K") common stock to Jupiter Industries,
Inc. ("Jupiter").
Effective May 23, 1995, the Company through Sussex sold an additional
150,000 shares of H-K common stock to Jupiter for $1,125,000. As a result
of the sale of these shares, the Company recognized a gain of $176,000.
This gain was recorded as an increase to paid-in capital and represents the
difference between cash received and the amount of H-K net equity
represented by these shares. The Company used $625,000 of the proceeds from
the May 23, 1995 stock sale to make payment on JG's $7,125,000 term loan.
Pursuant to the terms of the various stock purchase agreements (the
"Agreements"), Sussex has been granted an option to repurchase any or all
of the 950,000 H-K shares for a purchase price ranging from $7.25 to $8.00
per share plus interest on such amount. The Agreements also contained a
provision which required Jupiter to vote the 950,000 H-K shares for the
election of a majority of the Board of Directors of H-K as Sussex shall
direct. As a result of this voting provision, the Company through Sussex,
retained effective control of H-K. Jupiter and Sussex collectively owned
approximately 55.9% of the total issued and outstanding H-K shares at
October 27, 1995.
Pursuant to an Agreement and Plan of Merger dated September 18, 1995,
stockholders of H-K stock received a tender offer from an unrelated third
party on September 25, 1995 to acquire all of the issued and outstanding H-
K shares at a per share purchase price of $9.375 in cash. Upon consumption
of the tender offer on October 27, 1995, Sussex sold the 1,250,000 H-K
shares held directly by it for an aggregate cash consideration of
approximately $11,719,000. On October 27, 1995, pursuant to an agreement
dated September 18, 1995, between Jupiter and Sussex, Sussex also exercised
its option to repurchase the 950,000 H-K shares for the total purchase
price of $7,000,000 plus interest of approximately $641,000, and instructed
Jupiter to tender the 950,000 H-K shares. As a result of the repurchase,
the Company recorded a $1,530,000 loss as a decrease to paid-in capital.
This loss represents the difference between the total cash due to Jupiter
and amount of H-K equity represented by these shares. The Company also
recorded a receivable from Jupiter of approximately $1,265,000. This
receivable
7
<PAGE>
JG INDUSTRIES, INC. AND SUBSIDIARIES
------------------------------------
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
----------------------------------------------------
(UNAUDITED)
-----------
represents the difference between proceeds from the sale of $8,906,000 and
$7,641,000 owed to Jupiter by Sussex.
On October 30, 1995, the Company used proceeds received by Sussex from the
transaction to repay all debt outstanding under the Company's term loan of
approximately $6,250,000 plus interest, and to deposit $3,500,000 as
collateral on the Goldblatt's line of credit.
As a result of the transactions described above, previously issued
consolidated statements of operations have been restated to reflect H-K as
a discontinued operation.
Summarized results of H-K business for the thirteen and twenty-six weeks
ended July 29, 1995 were as follows (excluding the impact of minority
interest and management fees allocated to H-K on the Company's financial
statements):
<TABLE>
<CAPTION>
13 WEEKS 26 WEEKS
-------- --------
<S> <C> <C>
Net sales $30,795 $53,830
Cost and expenses 29,649 52,965
------- -------
Income before income taxes 1,146 865
Income tax provision (378) (185)
------- -------
Net income $ 768 $ 680
======= =======
</TABLE>
Net assets of the discontinued business as of July 29, 1995 were as
follows:
<TABLE>
<CAPTION>
<S> <C>
Cash $ 524
Receivables, net 20,184
Merchandise inventories 19,916
Land, building and equipment, net
of accumulated depreciation 5,765
Other assets 4,299
Current liabilities (23,101)
Long-term debt, net of current
portion (2,458)
--------
Net assets of discontinued
business $ 25,129
========
</TABLE>
The sale of H-K gave rise to an obligation of the Company under the Series
A 9% Cumulative Preferred Stock Designations to redeem all of the issued
and outstanding shares of that class of stock. The redemption price for all
of the Series A Preferred Stock is $3,183,000 plus unpaid accrued and
additional dividends of $980,000 at July 27, 1996. A mandatory obligation
to redeem shares of Series A Preferred Stock having a liquidation value of
at least $1,500,000 was scheduled on May 1, 1996. The Directors not
affiliated with Jupiter, on recommendation of management of the Company,
have determined to defer any redemption of the Series A Preferred Stock
until such time as it may do so without materially adversely affecting the
financial condition of the Company, as contemplated by applicable state
law. Pending satisfaction of any such redemption obligation, in accordance
with the Preferred Stock Designations, the dividend rate on the Series A
Preferred Stock increased from 9% to 12% per annum, compounded quarterly.
Jupiter is seeking redemption of the Series A Preferred Stock.
7) Effective February 22, 1996, Goldblatt's line of credit was amended. The
line is guaranteed by the Company, and is collateralized by a Certificate
of Deposit ("CD") in the amount of $3,500,000 held by the financial
institution. Interest is payable monthly at the CD rate plus 1%.
8
<PAGE>
JG INDUSTRIES, INC. AND SUBSIDIARIES
------------------------------------
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
----------------------------------------------------
(UNAUDITED)
-----------
8) During the first and second quarters of fiscal 1996, options to purchase
13,480 shares of common stock of H-K were exercised. Loss of $22,000 on
the issuance of these shares was recorded by the Company with an increase
to minority interest as H-K's net book value per share exceeded the option
prices.
9) Loss per share applicable to common and common equivalent shares is
computed after recognition of the dividend requirements on redeemable
preferred stock of $226,000 in fiscal 1997 and $200,000 in fiscal 1996.
9
<PAGE>
ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF
-----------------------------------------------
FINANCIAL CONDITION AND RESULTS OF OPERATIONS
---------------------------------------------
LIQUIDITY AND CAPITAL RESOURCES
-------------------------------
Cash and cash equivalents increased by $77,000 during the six months ended July
27, 1996, which included approximately $3,552,000 of net cash used in operating
activities. Accounts receivable increased by $200,000 due to increase in layaway
receivables and merchandise inventory not yet received but paid for. Inventories
increased by approximately $960,000 due to normal, seasonal increases.
Goldblatt's Department Stores, Inc. ("Goldblatt's", a wholly-owned subsidiary of
the Company) spent approximately $240,000 on capital expenditures during the
twenty-six weeks ended July 27, 1996, related to normal capital maintenance.
Goldblatt's capital expenditures for the balance of fiscal 1997 will be minimal
as no new store openings or major store renovations are planned. Goldblatt's has
$3,500,000 available under its line of credit. The Company believes that
Goldblatt's working capital and line of credit will be adequate to fund current
operations through fiscal 1997.
Goldblatt's used the proceeds received from the sale of its properties and
inventory to repay all debt outstanding under Goldblatt's mortgage loan of
approximately $1,980,000 plus interest and to repay borrowings on the line of
credit of $2,750,000.
The Company used proceeds received by Sussex from the sale of the Huffman Koos,
Inc. ("H-K") common stock to repay all debt outstanding under the Company's term
loan of approximately $6,250,000 plus interest, and to deposit $3,500,000 as
collateral on the Goldblatt's line of credit.
The sale of H-K gave rise to an obligation of the Company under the Series A 9%
Cumulative Preferred Stock Designations to redeem all of the issued and
outstanding shares of that class of stock. The redemption price for all of the
Series A Preferred Stock is $3,183,000 plus unpaid accrued and additional
dividends of $844,000 as of July 27, 1996. A mandatory obligation to redeem
shares of Series A Preferred Stock having a liquidation value of at least
$1,500,000 was scheduled on May 1, 1996. The Directors not affiliated with
Jupiter, on recommendation of management of the Company, have determined to
defer any redemption of the Series A Preferred Stock until such time as it may
do so without materially adversely affecting the financial condition of the
Company, as contemplated by applicable state law. Pending satisfaction of any
such redemption obligation, in accordance with the Preferred Stock Designations,
the dividend rate on the Series A Preferred Stock increased from 9% to 12% per
annum, compounded quarterly. Jupiter is seeking redemption of the Series A
Preferred Stock.
Effective February 22, 1996, Goldblatt's line of credit was amended. The line is
guaranteed by the Company, and is collateralized by a Certificate of Deposit
("CD") in the amount of $3,500,000 held by the financial institution. Interest
is payable monthly at the CD rate plus 1%.
10
<PAGE>
RESULTS OF OPERATIONS
---------------------
THIRTEEN WEEKS ENDED JULY 27, 1996 (FISCAL 1997) VS.
- ----------------------------------------------------
THIRTEEN WEEKS ENDED JULY 29, 1995 (FISCAL 1996)
- ------------------------------------------------
Net sales decreased 11.4% over the prior year, while comparable store sales
decreased 8.7% over the prior year. This decrease is largely due to
unseasonable weather conditions during the quarter as well as a sluggish retail
environment.
Gross profit percentage increased to 31.7% of sales from 31.4% of sales. This
improvement is due to a merchandise control program implemented during the
fourth quarter of fiscal 1996, which resulted in more opportunistic purchases,
lower inventory levels and less markdowns. Management intends to maintain
inventory levels at approximately $1,000,000 below fiscal 1996 inventory levels.
Selling, general and administrative expenses ("SG&A") remained consistent with
prior year at 37.8%. Actual SG&A expense was down $770,000 due to the sale of
the three properties as well as an expense reduction program implemented in
February 1996.
Interest expense decreased due to the repayment of the Company's term loan after
the sale of H-K in fiscal 1996.
Effective July 11, 1996, Goldblatt's sold three properties and the inventory for
approximately $6,544,000 net of expenses. A pre-tax gain of approximately
$1,012,000 resulted from this transaction.
The Company is currently negotiating a release from one of Goldblatt's store
leases. A provision of $407,000 for store closing for the loss on the sale of
the inventory and a loss on the book value of capitalized assets has been
recorded.
TWENTY-SIX WEEKS ENDED JULY 27, 1996 (FISCAL 1997) VS.
- ------------------------------------------------------
TWENTY-SIX WEEKS ENDED JULY 29, 1995 (FISCAL 1996)
- --------------------------------------------------
Net sales decreased by 9.4% over the prior year while comparable store sales
decreased by 7.7%. This decrease is due to unseasonable weather conditions and a
sluggish retail environment.
Gross profit percentage increased to 32.1% of sales from 31.2% in the prior
year. This improvement is due to a merchandise control program implemented
during the fourth quarter of fiscal 1996, which resulted in more opportunistic
purchases, lower inventory levels and less markdowns.
SG&A increased to 38.3% of sales from 37.8% in the prior year. The increase in
SG&A expenses as a percentage of sales is due to the sales decline. Actual SG&A
expenses were down due to the sale of the three Goldblatt's properties as well
as an expense reduction program implemented in February 1996.
Interest expense decreased due to the repayment of the Company's term loan after
the sale of H-K in fiscal 1996.
Effective July 11, 1996, Goldblatt's sold three properties and the inventory for
approximately $6,544,000 net of expenses. A pre-tax gain of approximately
$1,012,000 resulted from this transaction.
The Company is currently negotiating a release from one of the Goldblatt's store
leases. A provision of $407,000 for store closing for the loss on the sale of
the inventory and a loss on the book value of capitalized assets has been
recorded.
11
<PAGE>
PART II - OTHER INFORMATION
---------------------------
Item 5 - Other Information
None
Item 6 - Exhibits and Reports on Form 8-K
(a) Exhibits - None
(b) Reports on Form 8-K
Form 8-K dated July 11, 1996, detailing the Agreement of Purchase and
Sale between Goldblatt's Department Stores, Inc., Goldblatt
Subsidiary, Inc. and Delray Farms, Inc.
12
<PAGE>
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 under-
signed thereunto fully authorized.
JG INDUSTRIES, INC.
-------------------
(Registrant)
Date: September 6, 1996
-----------------
/s/ Clarence Farrar
--------------------------
CLARENCE FARRAR
President and
acting Chief Financial Officer
13
<TABLE> <S> <C>
<PAGE>
<ARTICLE> 5
<LEGEND> This schedule contains summary financial information extracted from
The JG Industries, Inc. Second Quarter 10-Q for Fiscal 1997 and is qualified in
its entirety by reference to such financial statements.
</LEGEND>
<MULTIPLIER> 1,000
<S> <C>
<PERIOD-TYPE> 6-MOS
<FISCAL-YEAR-END> JAN-25-1997
<PERIOD-START> JAN-28-1996
<PERIOD-END> JUL-27-1996
<CASH> 3,869
<SECURITIES> 0
<RECEIVABLES> 485
<ALLOWANCES> 0
<INVENTORY> 7,481
<CURRENT-ASSETS> 12,381
<PP&E> 14,116
<DEPRECIATION> 8,844
<TOTAL-ASSETS> 20,428
<CURRENT-LIABILITIES> 6,200
<BONDS> 0
<COMMON> 11,246
4,027
0
<OTHER-SE> (3,352)
<TOTAL-LIABILITY-AND-EQUITY> 20,428
<SALES> 31,076
<TOTAL-REVENUES> 31,076
<CGS> 21,089
<TOTAL-COSTS> 11,901
<OTHER-EXPENSES> 407
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 31
<INCOME-PRETAX> (1,386)
<INCOME-TAX> 26
<INCOME-CONTINUING> (1,412)
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> (1,412)
<EPS-PRIMARY> (.08)
<EPS-DILUTED> 0
</TABLE>
