Golden Enterprises, Inc.
2101 Magnolia Avenue South
Suite 212
Birmingham, Alabama 35205
205-326-6101
October 10, 1995
Securities and Exchange Commission
Washington, D.C. 20549
Attention: Branch of Filings and Reports
Gentlemen:
Enclosed is our quarterly Report on Form 10-Q as required by
Section 13 or 15(d) of the Securities Exchange Act of 1934.
Very truly yours,
/s/ John H. Shannon
------------------------
John H. Shannon
Vice President/Controller
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 quarterly period ended August 31, 1995
----------------
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 0-4339
-----------------
GOLDEN ENTERPRISES, INC.
(Exact name of registrant as specified in its charter)
DELAWARE 63-0250005
- -------------------------------- --------------------------
(State or other jurisdiction of (I. R. S. Employer
incorporation or organization) Identification No.)
Suite 212, 2101 Magnolia Avenue, South
Birmingham, Alabama 35205
- -------------------------------------- ---------------------
(Address of Principal Executive Offices) (Zip Code)
(205) 326-6101
(Registrant's telephone number, including area code)
Indicate by check mark whether the registrant (1) has filed all
reports required to be filed by Section 13 or 15(d) of the
Securities Exchange Act of 1934 during the preceding 12 months (or
for such shorter period that the registrant was required to file
such reports), and (2) has been subject to such filing requirements
for the past 90 days.
Yes X No
------ --------
Indicate the number of shares outstanding of each of the issuer's
classes of common stock, as of September 30, 1995.
Outstanding at
Class September 30, 1995
- ---------------------------------- ------------------
Common Stock, Par Value $0.66 2/3 12,261,950
GOLDEN ENTERPRISES, INC.
INDEX
Part I. Financial Information Page No.
Consolidated Condensed Balance Sheets -
August 31, 1995 and May 31, 1995 3
Consolidated Condensed Statements of Income -
Three Months Ended August 31, 1995 and 1994 4
Consolidated Condensed Statements of Cash
Flows - Three Months Ended
August 31, 1995 and 1994 5
Notes to Consolidated Condensed Financial
Statements 6
Management's Discussion and Analysis of Financial
Condition and Results of Operations 7
Part II. Other Information 8
PART I. FINANCIAL INFORMATION
<TABLE>
GOLDEN ENTERPRISES, INC. AND SUBSIDIARIES
CONSOLIDATED CONDENSED BALANCE SHEETS
<CAPTION>
August 31, May 31,
1995 1995
------------ ------------
(Unaudited) (Audited)
ASSETS
<S> <C> <C>
Cash and cash equivalents $ 1,208,627 $ 623,592
Marketable securities $15,417,708 $13,828,663
Receivables, net $ 9,942,290 $10,869,699
Inventories:
Raw material and supplies $ 1,927,167 $ 1,697,629
Finished goods $ 2,497,249 $ 2,857,217
----------- -----------
$ 4,424,416 $ 4,554,846
----------- -----------
Current assets:
Prepaid expenses $ 2,396,747 $ 1,968,851
----------- -----------
Total current assets $33,389,788 $31,845,651
----------- -----------
Property, plant and equipment, net $18,999,384 $18,136,045
Other assets $ 2,030,239 $ 2,030,234
----------- -----------
Total $54,419,411 $52,011,930
----------- -----------
----------- -----------
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Notes payable, principally to banks $ 0 $ 0
Accounts payable & checks outstanding
in excess of bank balance $ 6,072,525 $ 4,324,632
Accrued and deferred income taxes $ 1,166,235 $ 426,463
Other accrued expenses $ 1,176,853 $ 1,307,049
Current installments of long-term debt $ 0 $ 0
----------- -----------
Total current liabilities $ 8,415,613 $ 6,058,144
----------- -----------
Long-term debt less current maturities $ 654,998 $ 598,922
----------- -----------
Deferred income taxes $ 1,827,701 $ 1,864,461
----------- -----------
Stockholders' Equity:
Common Stock - $.66 - 2/3 value:
35,000,000 shares Authorized
Issued 13,828,793 shares $ 9,219,195 $ 9,219,195
Additional paid-in capital $ 6,568,368 $ 6,568,368
Retained earnings $36,552,069 $36,521,373
----------- -----------
$52,339,632 $52,308,936
Less: Cost of common shares in treasury
(1,566,843 shares at August 31, 1995 and
1,566,843 shares at May 31, 1995) $-8,818,533 $-8,818,533
----------- -----------
Total stockholders' equity $43,521,099 $43,490,403
----------- -----------
Total $54,419,411 $52,011,930
----------- -----------
----------- -----------
<FN>
See Accompanying Notes to Consolidated Condensed Financial Statements.
</FN>
</TABLE>
<TABLE>
GOLDEN ENTERPRISES, INC. AND SUBSIDIARIES
CONSOLIDATED CONDENSED STATEMENTS OF INCOME
(UNAUDITED)
<CAPTION>
Three Months Ended
August 31,
---------------------------
1995 1994
----------- -----------
REVENUES:
<S> <C> <C>
Net Sales $32,875,913 $31,487,887
Other operating revenues $ 153,144 $ 204,356
Investment income $ 218,199 $ 122,300
----------- -----------
Total revenues $33,247,256 $31,814,543
----------- -----------
COSTS AND EXPENSES:
Cost of sales $14,234,603 $13,651,779
Selling, general and administrative expense $16,723,911 $16,001,373
Interest $ 0 $ 0
----------- -----------
Total costs and expenses $30,958,514 $29,653,152
----------- -----------
Income from continuing operations
before income taxes $ 2,288,742 $ 2,161,391
Income taxes $ 847,919 $ 843,682
----------- -----------
Income from continuing operations $ 1,440,823 $ 1,317,709
Discontinued operations (Note):
Loss (income) from operations of
discontinued business,
net of related income taxes $ 0 $ 23,348
----------- -----------
Net income $ 1,440,823 $ 1,341,057
Per share of common stock (Note 1);
Income from continuing operations $ .12 $ .11
Income from operations of discontinued
business $ .00 $ .00
----------- -----------
Net income $ .12 $ .11
----------- -----------
----------- -----------
Weighted average number of
common shares outstanding 12,261,950 12,485,326
----------- -----------
----------- -----------
Cash dividend paid per share of common stock .1150 .1125
----------- -----------
----------- -----------
<FN>
See Accompanying Notes to Consolidated Condensed Financial Statements.
</FN>
</TABLE>
<TABLE>
GOLDEN ENTERPRISES, INC. AND SUBSIDIARIES
CONSOLIDATED CONDENSED STATEMENTS OF CASH FLOWS
(UNAUDITED)
<CAPTION>
Three Months Ended
August 31,
----------- -----------
1995 1994
----------- -----------
Cash flows from operating activities:
<S> <C> <C>
Net income $ 1,440,823 $ 1,341,057
Adjustment to reconcile net income to net
cash provided by operating activities:
Depreciation and amortization $ 585,538 $ 717,302
Compensation related to stock plan $ 0 $ 0
Salary Continuation Benefits $ 56,076 $ 66,132
Deferred income taxes $ -36,760 $ -31,777
Gain on sale of equipment $ -91,119 $ -145,104
Income from operations of discontinued
business $ 0 $ -23,348
Dividends received from discontinued business $ 0 $ 35,000
Changes in operating assets and liabilities:
Decrease (increase) in accounts receivable $ 927,409 $ 377,534
Decrease (increase) in inventories $ 130,430 $ 88,522
Decrease (increase) in prepaid expenses $ -427,896 $ -426,085
Decrease (increase) in other assets-long term $ -5 $ -5
Increase (decrease) in accounts payable
and checks outstanding in excess of
bank balances $ 1,747,893 $ 1,769,982
Increase (decrease) in accrued income taxes $ 739,772 $ 539,199
Increase (decrease) in accrued expenses $ -130,196 $ -245,331
----------- -----------
$ 4,941,965 $ 4,063,078
----------- -----------
Cash flows from investing activities:
Purchase of property, plant and equipment $-1,458,223 $ -245,334
Proceeds from sale of equipment $ 100,466 $ 191,571
Proceeds from sale of discontinued operations $ 0 $ 0
Net decrease (increase) in marketable
securities $-1,589,045 $-2,043,129
----------- -----------
Net cash provided by (used in)
investing activities $-2,946,802 $-2,096,892
----------- -----------
Cash flows from financing activities:
Payments of current installments
of long-term debt $ 0 $ 0
Purchase of treasury stock $ 0 $ -194,625
Proceeds from sale of treasury stock $ 0 $ 0
Cash dividend paid $-1,410,128 $-1,404,164
----------- -----------
Net cash used in
financing activities $-1,410,128 $-1,598,789
----------- -----------
Net (decrease) increase in cash and
cash equivalents $ 585,035 $ 367,397
Cash and cash equivalents at beginning of year $ 623,592 $ 642,064
----------- -----------
Cash and cash equivalents at end of quarter $ 1,208,627 $ 1,009,461
----------- -----------
----------- -----------
Supplemental information:
Cash paid during the year for:
Income taxes $ 144,907 $ 277,100
Interest $ 0 $ 0
<FN>
See Accompanying Notes to Consolidated Condensed Financial Statements.
</FN>
</TABLE>
GOLDEN ENTERPRISES, INC. AND SUBSIDIARIES
NOTES TO CONSOLIDATED CONDENSED FINANCIAL STATEMENTS
1. In the opinion of management, the accompanying unaudited
consolidated condensed financial statements contain all
adjustments (consisting of only normal recurring accruals)
necessary to present fairly its financial position as of
August 31, 1995 and May 31, 1995, and its results of
operations for the three months ended August 31, 1995 and 1994
and its cash flow for the three months ended August 31, 1995
and 1994.
The accounting policies followed by the Company are set forth
in note 1 to the Company's financial statements in the Annual
Report to stockholders for fiscal year ended May 31, 1995
which is incorporated by reference in Form 10-K.
2. The results of operations for the three months ended August
31, 1995 and 1994 are not necessarily indicative of the
results to be expected for the full year.
MANAGEMENT'S DISCUSSION AND ANALYSIS OF
FINANCIAL CONDITION AND RESULTS OF OPERATIONS
Liquidity and Capital Resources
Working Capital was $25.8 million at June 1, 1995 and $25.0
million at the end of the first quarter. Net cash provided by
operating activities amounted to $4.9 million for the quarter this
year compared to $4.1 million for last year's first quarter.
Additions to property, plant and equipment, net of disposals,
were $1.45 million this year and $0.20 million last year. Cash
dividends of $1.41 million were paid during this year's first
quarter compared to $1.40 million last year. No cash was used to
purchase treasury stock this year while $0.19 million was used last
year, and $1.59 million of cash was used to increase investments in
marketable securities this year compared to $2.04 million last
year. The Company's current ratio was a healthy 3.97 to 1.00 at
August 31, 1995.
Management is not aware of any trends or events that will
cause a material change in the Company's liquidity.
Operating Results
For the three months ended August 31, 1995, total revenues
increased 4.5% from the comparable period in fiscal 1995. Cost of
sales was 43.3% of net sales compared to 43.4% last year. Selling,
general and administrative expenses were 50.9% of net sales this
year and 50.8% last year.
The Company's investment income as a percentage of pre-tax
income was 9.5% this year compared to 5.7% last year. This was due
to an actual dollar increase in investment income of 78.4%.
The Company's effective tax rate for the first quarter was
37.0% compared to 39.0% for last year's first quarter.
PART II. OTHER INFORMATION
Item 6. Exhibits and Reports on Form 8-K
(b) Reports on Form 8-K - There were no reports on form
8-K filed for the three months ended August 31,
1995.
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.
GOLDEN ENTERPRISES, INC.
------------------------
(Registrant)
Dated: October 10, 1995 /s/ Sloan Y. Bashinsky, Sr.
- ----------------------- ----------------------------
Sloan Y. Bashinsky, Sr.
Chairman of the Board
Dated: October 10, 1995 /s/ John H. Shannon
- ----------------------- -----------------------------
John H. Shannon
Vice President/Controller
(Principal Accounting
Officer)
<TABLE> <S> <C>
<ARTICLE> 5
<S> <C>
<PERIOD-TYPE> 3-MOS
<FISCAL-YEAR-END> MAY-31-1996
<PERIOD-END> AUG-31-1995
<CASH> 1,208,627
<SECURITIES> 15,417,708
<RECEIVABLES> 9,942,290
<ALLOWANCES> 19,000
<INVENTORY> 4,424,416
<CURRENT-ASSETS> 33,389,788
<PP&E> 72,282,268
<DEPRECIATION> 53,282,884
<TOTAL-ASSETS> 54,419,411
<CURRENT-LIABILITIES> 8,415,613
<BONDS> 0
<COMMON> 9,219,195
0
0
<OTHER-SE> 34,301,904
<TOTAL-LIABILITY-AND-EQUITY> 54,419,411
<SALES> 32,875,913
<TOTAL-REVENUES> 33,247,256
<CGS> 14,234,603
<TOTAL-COSTS> 30,958,514
<OTHER-EXPENSES> 0
<LOSS-PROVISION> 9,000
<INTEREST-EXPENSE> 0
<INCOME-PRETAX> 2,288,742
<INCOME-TAX> 847,919
<INCOME-CONTINUING> 1,440,823
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 1,440,823
<EPS-PRIMARY> .12
<EPS-DILUTED> .12
</TABLE>
