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 February 28, 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
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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 December 31, 1994.
Outstanding at
Class March 31, 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 -
February 28, 1995 and May 31, 1994 3
Consolidated Condensed Statements of Income -
Three Months Ended and Nine Months Ended
February 28, 1995 and 1994 4
Consolidated Condensed Statements of Cash
Flows - Nine Months Ended
February 28, 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
<TABLE>
Part I. Financial Information
GOLDEN ENTERPRISES, INC. AND SUBSIDIARES
CONSOLIDATED CONDENSED BALANCE SHEETS
<CAPTION>
February 28, May 31,
1995 1994
------------ ----------
(Unaudited) (Audited)
ASSETS
<S> <C> <C>
Cash and cash equivalents $ 4,344,760 $ 642,064
Marketable securities 12,631,277 13,415,968
Receivables, net 9,826,065 10,112,888
Inventories:
Raw material and supplies 2,528,036 1,826,133
Finished goods 2,868,380 2,425,120
----------- -----------
5,396,416 4,251,253
----------- -----------
Current assets:
Prepaid expenses 2,714,406 1,967.560
Current assets of discontinued business 0 1,989,309
----------- -----------
Total current assets 34,912,924 32,379,042
----------- -----------
Property, plant and equipment, net 18,582,643 19,626,942
Property, plant and equipment,net
(of discontinued business) 0 587,562
Other assets 1,753,558 1,753,612
----------- -----------
$55,249,125 $54,347,158
----------- -----------
----------- -----------
LIABILITIES AND STOCKHOLDERS' EQUITY
Current Liabilities:
Notes payable, principally to banks $ 0 $ 0
Accounts payable & checks outstanding
in excess of bank balance 7,409,808 4,045,257
Accrued and deferred income taxes 74,374 193,010
Other accrued expenses 1,321,508 1,439,284
Current installments of long-term debt 71,366 71,366
Current liabilities of discontinued business 0 417,746
----------- -----------
Total current liabilities $ 8,877,056 $ 6,166,663
----------- -----------
Long-term debt less current maturities 663,963 478,526
----------- -----------
Deferred income taxes 1,890,887 2,015,260
Deferred income taxes of discontinued business 0 58,240
----------- -----------
Stockholders' Equity:
Common stock - $.66 2/3 par value:
35,000,000 shares Authorized
Issued 13,828,793 shares 9,219,195 9,219,195
Additional paid-in capital 6,496,045 6,515,575
Retained earnings 36,505,793 37,031,156
----------- -----------
52,221,033 52,765,926
Less: Cost of common shares in treasury
(1,508,286 shares at February 28, 1995 and
1,332,347 shares at May 31, 1994) -8,403,814 -7,137,457
----------- ------------
Total stockholders' equity 43,817,219 45,628,469
----------- -----------
Total $55,249,125 $54,347,158
----------- -----------
----------- -----------
<FN>
See Accompanying Notes to Consolidated Condensed Financial Statements
</FN>
</TABLE>
<TABLE>
GOLDEN ENTERPRISES, INC. & SUBSIDIARIES
CONSOLIDATED CONDENSED STATEMENTS OF INCOME
(UNAUDITED)
<CAPTION>
Three Months Ended Nine Months Ended
February 28, February 28,
--------------------------- ---------------------------
1995 1994 1995 1994
----------- ----------- ----------- -----------
REVENUES:
<S> <C> <C> <C> <C>
Net sales $32,261,892 $31,484,985 $93,667,336 $91,785,016
Other operating revenues 202,580 250,293 524,573 444,840
Investment income 144,387 187,014 425,781 510,066
----------- ----------- ----------- -----------
Total revenues $32,608,859 $31,922,292 $94,617,690 $92,739,922
----------- ----------- ----------- -----------
COSTS AND EXPENSES;
Cost of sales $14,020,511 $14,303,140 $40,559,477 $40,442,938
Selling, general and
administrative expense 16,606,732 17,417,368 48,087,630 49,817,553
Interest 0 101 0 101
----------- ----------- ----------- -----------
Total costs and expenses $30,627,243 $31,720,609 $88,647,107 $90,260,592
----------- ----------- ----------- -----------
Income from continuing
operations before income taxes $ 1,981,616 $ 201,683 $ 5,970,583 $ 2,479,330
Income taxes 750,343 82,784 2,244,819 876,038
----------- ----------- ----------- -----------
Income from continuing
operations $ 1,231,273 $ 118,899 $ 3,725,764 $ 1,603,292
Discontinued operations (Note):
Loss (income) from operations
of discontinued business,
net of related income taxes $ - 22,029 $ - 2,290 $ 2,490 $ 85,216
Gain on disposal of discontinued
business, net of related
incomes taxes of $142 252 0 252 0
----------- ----------- ----------- -----------
Net income $ 1,209,496 $ 116,609 $ 3,728,506 $ 1,688,508
Per share of common stock
(Note 1):
Income from continuing
operations $ .10 $ .01 $ .30 $ .13
Income from operations of
discontinued business .00 .00 .00 .01
Gain on disposal of discontinued
business .00 .00 .00 .00
----------- ----------- ----------- -----------
Net income $ .10 $ .01 $ .30 $ .14
----------- ----------- ----------- -----------
----------- ----------- ----------- -----------
Weighted average number of
common shares outstanding 12,340,782 12,519,569 12,411,430 12,555,776
----------- ----------- ----------- -----------
----------- ----------- ----------- -----------
Cash dividend paid per share
of common stock $ .1150 $ .1125 $ .3425 $ .3350
----------- ----------- ----------- -----------
----------- ----------- ----------- -----------
<FN>
See Accompanying Notes to Consolidated Condensed Financial Statements
</FN>
</TABLE>
<TABLE>
GOLDEN ENTERPRISES, INC. AND SUBSIDIARIES
CONSOLIDATED CONDENSED STATEMENTS OF CASH FLOWS
(UNAUDITED)
Nine Months Ended
February 28,
--------------------------
1995 1994
---------- ----------
<S> <C> <C>
Cash flows from operating activities:
Net income $ 3,728,506 $ 1,688,508
Adjustment to reconcile net income to net cash
provided by operating activities:
Depreciation and amortization 2,110,842 2,603,760
Compensation related to stock plan 0 0
Salary Continuation Benefits 185,437 193,295
Deferred income taxes - 124,373 - 134,889
Gain on sale of equipment - 384,362 - 320,250
Changes in operating assets and liabilities:
Decrease (increase) in accounts receivable 286,823 - 641,506
Decrease (increase) in inventories -1,145,163 431,512
Decrease (increase) in prepaid expenses - 746,846 - 681,020
Decrease (increase) in other assets -
long-term 54 83
Increase (decrease) in accounts payable and
checks outstanding in excess
of bank balances 3,364,551 3,340,136
Increase (decrease) in accrued income taxes - 118,636 - 555,136
Increase (decrease) in accrued expenses - 117,776 - 273,761
----------- -----------
$ 7,039,057 $ 5,650,732
----------- -----------
Cash flows from investing activities:
Purchase of property, plant and equipment $-1,163,615 $- 598,337
Proceeds from sale of equipment 482,319 418,900
Proceeds from sale of discontinued operations 2,100,000 0
Net decrease (increase) in marketable securities 784,691 1,379,152
----------- -----------
Net cash provided by (used in)
investing activities $ 2,203,395 $ 1,199,715
----------- -----------
Cash flows from financing activities:
Payments of current installments of
long-term debt $ 0 $ 0
Purchase of treasury stock -1,468,387 -1,164,315
Proceeds from sale of treasury stock 182,500 197,004
Cash dividend paid -4,253,869 -4,204,207
----------- -----------
Net cash used in financing activities $-5,539,756 $-5,171,518
----------- -----------
Net (decrease) increase in cash and cash equivalents $ 3,702,696 $ 1,678,929
Cash and cash equivalents at beginning of year 642,064 1,034,758
----------- -----------
Cash and cash equivalents at end of quarter $ 4,344,760 $ 2,713,687
----------- -----------
----------- -----------
Supplemental information:
Cash paid during the year for:
Income taxes $ 2,487,970 $ 1,563,141
Interest 0 101
<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 February 28, 1995 and May 31, 1994, and
its results of operations for the three months and nine
ended February 28, 1995 and 1994 and its cash flows for
the nine months ended February 28, 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, 1994 which is incorporated by reference in Form
10-K.
2. The results of operations for the three months and nine
months ended February 28, 1995 and 1994 are not
necessarily indicative of the results to be expected for
the full year.
3. The Company, as of the close of business January 31,
1995 sold its subsidiaries, Steel City Bolt & Screw,
Inc. and Nall & Associates, Inc. The sale of these
subsidiaries is not expected to have significant effect
on the financial position or results of operations
(revenues, net income or earnings per share) of the
Company for the fiscal year 1995.
MANAGEMENTS'S DISCUSSION AND ANALYSIS OF
FINANCIAL CONDITION AND RESULTS OF OPERATIONS
Liquidity and Capital Resources
Working capital decreased from $26.2 million at June 1, 1994 to
$26.0 million at the end of the third quarter. Net cash provided by
operating activities amounted to $7.0 million for the nine months this
year compared to $5.7 million for last year.
$2.1 million cash was received in February from the sale of the
Company's fastener division which consisted of two wholly-owned
subsidiaries, Steel City Bolt & Screw, Inc. and Nall & Associates, Inc.
Additions to property, plant and equipment, net of disposals,
were $1.1 million this year and $0.5 million last year. Cash
dividends of $4.25 million were paid during the first nine months of
this year compared to $4.20 million last year. $1.47 million cash was
used to purchase treasury stock this year while $1.16 million was used
last year, and $.78 million of cash was provided by a net decrease
in marketable securities this year compared to $1.38 million last year.
The Company's current ratio was 3.93 to 1.00 at February 28, 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 February 28, 1995, total revenues from
continuing operations were up 2.2% from the comparable period in fiscal
1994. Cost of sales was 43.5% of net sales compared to 45.4% last
year. The favorable cost of sales comparison was due primarily to the
availability of a much better quality potato for producing potato chips
this year. Selling, general and administrative expenses were 51.5% of
net sales this year and 55.3% last year. The major factor causing the
decrease in selling, general and administrative expenses was less
advertising expense compared to last year's third quarter when the
Company was conducting market specific campaigns to improve customer
awareness of the Company's brands.
For the year-to-date, total revenues from continuing operations
increased 2.0% from the comparable period in fiscal 1994. Cost of
sales was 43.3% of net sales compared to 44.1% last year. Selling,
general and administrative expenses were 51.3% of net sales this year
and 54.3% last year.
The Company's third quarter investment income from continuing
operations as a percentage of pre-tax income was 7.3% this year
compared to 92.7% last year. This decrease was due to the increase in
operating income, and the fact that investment income dollars decreased
22.8%.
For the nine months, investment income from continuing operations
was 7.1% of pre-tax income this year and 20.6% last year. For the nine
months, investment income dollars decreased 16.5%.
The Company's effective tax rate for the third quarter was
37.9% compared to 41.0% for last year's third quarter and 37.6% versus
35.3% for the nine months.
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
February 28, 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: April 6, 1995 /s/ Sloan Y. Bashinsky, Sr.
------------------ -----------------------------
Sloan Y. Bashinsky, Sr.
Chairman of the Board
Dated: April 6, 1995 /s/ John H. Shannon
------------------ -----------------------------
John H. Shannon
Vice President/Controller
(Principal Accounting
Officer)
