<LETTER>
GOLDEN ENTERPRISES, INC.
2101 Magnolia Avenue South
Suite 212
Birmingham, Alabama 35205
205-326-6101
April 5, 1996
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
</LETTER>
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 29, 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 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 March 31, 1996.
Outstanding at
Class March 31, 1996
- --------------------------------- -----------------
Common Stock, Par Value $0.66 2/3 12,205,950
GOLDEN ENTERPRISES, INC.
INDEX
Part I. Financial Information Page No.
Consolidated Condensed Balance Sheets -
February 29, 1996 and May 31, 1995 3
Consolidated Condensed Statements of Income -
Three Months Ended and Nine Months Ended
February 29, 1996 and February 28, 1995 4
Consolidated Condensed Statements of Cash
Flows - Nine Months Ended
February 29, 1996 and February 28, 1995 5
Notes to Consolidated Condensed Financial
Statements 6
Management's Discussion and Analysis of
Financial Condition and Results of Operation 7
Part II. Other Information 8
PART I. FINANCIAL INFORMATION
<TABLE>
GOLDEN ENTERPRISES, INC. AND SUBSIDIARIES
CONSOLIDATED CONDENSED BALANCE SHEETS
<CAPTION>
February 29, May 31,
1996 1995
----------- -----------
(Unaudited) (Audited)
ASSETS
<S> <C> <C>
Cash and cash equivalents $ 638,665 $ 623,592
Investment Securities 9,083,747 13,828,663
Receivables, net 9,609,310 10,869,699
Inventories:
Raw material and supplies 2,563,078 1,697,629
Finished goods 2,380,353 2,857,217
----------- -----------
4,943,431 4,554,846
----------- -----------
Current assets:
Prepaid expenses 3,307,488 1,968,851
----------- ------------
Total current assets 27,582,641 31,845,651
----------- -----------
Property, plant and equipment, net 21,847,744 18,136,045
Other assets 2,029,976 2,030,234
----------- ------------
$51,460,361 $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 5,672,840 4,324,632
Accrued and deferred income taxes 439,248 426,463
Other accrued expenses 1,270,148 1,307,049
Current installments of long-term debt 0 0
----------- -----------
Total current liabilities 7,382,236 6,058,144
----------- -----------
Long-term debt less current maturities 767,151 598,922
----------- -----------
Deferred income taxes 1,809,617 1,864,461
----------- -----------
Stockholder's 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 6,568,368 6,568,368
Retained earnings 35,015,327 36,521,373
----------- -----------
$50,802,890 $52,308,936
Less: Cost of common shares in treasury
(1,622,843 shares at February 29,1996
and 1,566,843 shares at May 31, 1995 (9,301,533) (8,818,533)
----------- -----------
Total stockholders' equity $41,501,357 $43,490,403
----------- -----------
Total $51,460,361 $52,011,930
----------- -----------
----------- -----------
See Accompanying Notes to Consolidated Condensed Financial Statements
</TABLE>
<TABLE>
GOLDEN ENTERPRISES, INC. & SUBSIDIARIES
CONSOLIDATED CONDENSED STATEMENTS OF INCOME
(UNAUDITED)
<CAPTION>
Three Months Ended Nine Months Ended
---------------------------- ----------------------------
February 29, February 28, February 29, February 28,
1996 1995 1996 1995
----------- ------------ ------------ ------------
REVENUES:
<S> <C> <C> <C> <C>
Net Sales $30,975,965 $32,261,892 $93,349,200 $93,667,336
Other operating revenues 45,789 202,580 321,320 524,573
Investment income 156,669 144,387 584,175 425,781
----------- ----------- ----------- -----------
Total revenues 31,178,423 32,608,859 94,254,695 94,617,690
----------- ----------- ---------- -----------
COSTS AND EXPENSES:
Cost of sales 13,948,687 14,020,511 41,599,537 40,559,477
Selling, general and
administrative expense 16,406,402 16,606,732 48,310,451 48,087,630
Interest 0 0 0 0
----------- ---------- ----------- -----------
Total costs and expenses 30,355,089 30,627,243 89,909,988 88,647,107
----------- ----------- ----------- -----------
Income from continuing operations
before income taxes 823,334 1,981,616 4,344,707 5,970,583
Income taxes 314,100 750,343 1,559,061 2,244,819
----------- ----------- ----------- -----------
Income from continuing operations 509,234 1,231,273 2,785,646 3,725,764
Discontinued operations (Note):
(Loss) income from operations
of discontinued business,
net of related income taxes 0 (22,029) 0 2,490
Gain on disposal of discontinued
business, net of related
income taxes of $142 0 252 0 252
----------- ----------- ----------- -----------
Net income 509,234 1,209,496 2,785,646 3,728,506
Per share of common stock (Note 1):
Income from continuing operations 0.04 0.10 0.23 0.30
Income from operations of
discontinued business 0.00 0.00 0.00 0.00
Gain on disposal of
discontinued business 0.00 0.00 0.00 0.00
----------- ----------- ----------- -----------
Net income $ 0.04 $ 0.10 $ 0.23 $ 0.30
----------- ----------- ----------- -----------
----------- ----------- ----------- -----------
Weighted average number of
common shares outstanding 12,243,488 12,340,782 12,255,819 12,411,430
----------- ----------- ----------- -----------
----------- ----------- ----------- -----------
Cash dividend paid per share
of common stock $ .1175 $ .1150 $ .3500 $ .3425
----------- ----------- ----------- -----------
----------- ----------- ----------- -----------
See Accompanying Notes to Consolidated Condensed Financial Statements.
</TABLE>
<TABLE>
GOLDEN ENTERPRISES, INC. AND SUBSIDIARIES
CONSOLIDATED CONDENSED STATEMENTS OF CASH FLOWS
(UNAUDITED)
<CAPTION>
NINE MONTHS ENDED
----------------------------
February 29, February 28,
1996 1995
----------- -----------
Cash flows from operating activities:
<S> <C> <C>
Net income $ 2,785,646 $ 3,728,506
Adjustment to reconcile net income to net
cash provided by operating activities:
Depreciation and amortization 1,794,760 2,110,842
Compensation related to stock plan 0 0
Salary Continuation Benefits 168,229 185,437
Deferred income taxes (54,844) (124,373)
Gain on sale of equipment (183,537) (384,362)
Income from operations of discontinued business 0 0
Dividends received from discontinued business 0 0
Changes in operating assets and liabilities:
Decrease (increase) in accounts receivable 1,260,389 286,823
Decrease (increase) in inventories (388,585) (1,145,163)
Decrease (increase) in prepaid expenses (1,338,637) (746,846)
Decrease (increase) in other assets-long term 258 54
Increase (decrease) in accounts payable and
checks outstanding in excess of excess of
bank balances 1,348,208 3,364,551
Increase (decrease) in accrued income taxes 12,785 (118,636)
Increase (decrease) in accrued expenses (36,901) (117,776)
----------- -----------
5,367,771 7,039,057
----------- -----------
Cash flows from investing activities:
Purchase of property, plant and equipment (5,540,350) (1,163,615)
Proceeds from sale of equipment 217,428 482,319
Proceeds from sale of discontinued
operations 0 2,100,000
Net decrease (increase) in investment
securities 4,744,916 784,691
----------- -----------
Net cash provided by (used in)
investing activities (578,006) 2,203,395
----------- -----------
Cash flows from financing activities:
Payments of current installments
of long-term debt 0 0
Purchase of treasury stock (483,000) (1,468,387)
Proceeds from sale of treasury stock 0 182,500
Cash dividend paid (4,291,692) (4,253,869)
----------- -----------
Net cash used in financing activities (4,774,692) (5,539,756)
----------- -----------
Net (decrease) increase in cash and
cash equivalents 15,073 3,702,696
Cash and cash equivalents at beginning of year 623,592 642,064
----------- -----------
Cash and cash equivalents at end of quarter $ 638,665 $ 4,344,760
----------- -----------
----------- -----------
Supplemental information:
Cash paid during the year for:
Income taxes $ 2,156,521 $ 2,487,970
Interest 0 0
See Accompanying Notes to Consolidated Condensed Financial Statements.
</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 29, 1996 and February 28, 1995, and its results of
operations for the three and nine months ended February 29,
1996 and February 28, 1995 and its cash flow for the nine
months ended February 29, 1996 and February 28, 1995.
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 and nine months ended
February 29, 1996 and February 28, 1995 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 did not have
significant effect on the financial position or results of
operations (revenues, net income or earnings per share) of the
Company for fiscal year 1995.
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 $20.2 million at the end of the third quarter. Net
cash provided by operating activities amounted to
$5.4 million for the nine months this year compared to $7.0
million for last year's first nine months.
Additions to property, plant and equipment, net
of disposals, were $5.5 million this year and $1.1 million
last year. Cash dividends of $4.29 million were paid during
the first nine months of this year compared to $4.25 million
last year. $0.48 million cash was used to purchase treasury stock
this year while $1.47 million was used last year, and $4.74
million of cash was provided by a net decrease in investment
securities this year compared to $0.78 million last year.
The Company's current ratio was a 3.74 to 1.00 at
February 29, 1996 compared to 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. The
increase in capital expenditures this year was for the development
of new fat-free and low-fat snack food products, and all of these
new products will be in distribution during the fourth quarter.
Operating Results
For the three months ended February 29, 1996, total
revenues were down 4.4% from the comparable period in
fiscal 1995. Cost of sales was 45.0% of net sales compared
to 43.5% last year. Selling, general and administrative
expenses were 53.0% of net sales this year and 51.5% last
year.
For the year-to-date, total revenues decreased 0.4%
from the comparable period in fiscal 1995. Cost of sales was
44.6% of net sales compared to 43.3% last year. Selling,
general and administrative expenses were 51.8% of net sales
this year and 51.3% last year.
The Company's third quarter investment income as a
percentage of pre-tax income was 19.0% this year compared to
7.3% last year. The increase was due to the decrease in
operating income, and the fact that investment income dollars
increased 8.5%.
For the nine months, investment income was 13.4% of
pre-tax income this year and 7.1% last year. For the nine
months, investment income dollars increased 34.9%.
The Company's effective tax rate for the third quarter
was 38.1% compared to 37.9% for last year's third quarter
and 35.9% versus 37.6% 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 29, 1996.
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 5, 1996 /s/ Sloan Y. Bashinsky, Sr.
_____________________________
Sloan Y. Bashinsky, Sr.
Chairman of the Board
Dated: April 5, 1996 /s/ John H. Shannon
_________________________
John H. Shannon
Vice President/Controller
(Principal Accounting
Officer)
<TABLE> <S> <C>
<ARTICLE> 5
<MULTIPLIER> 1000
<S> <C>
<PERIOD-TYPE> 9-MOS
<FISCAL-YEAR-END> MAY-31-1996
<PERIOD-END> FEB-29-1996
<CASH> 638,665
<SECURITIES> 9,083,747
<RECEIVABLES> 9,609,310
<ALLOWANCES> 37,000
<INVENTORY> 4,943,431
<CURRENT-ASSETS> 27,582,641
<PP&E> 76,189,279
<DEPRECIATION> 54,341,535
<TOTAL-ASSETS> 51,460,361
<CURRENT-LIABILITIES> 7,382,236
<BONDS> 0
0
0
<COMMON> 9,219,195
<OTHER-SE> 32,282,162
<TOTAL-LIABILITY-AND-EQUITY> 51,460,361
<SALES> 93,349,200
<TOTAL-REVENUES> 94,254,695
<CGS> 41,599,537
<TOTAL-COSTS> 89,909,988
<OTHER-EXPENSES> 0
<LOSS-PROVISION> 27,000
<INTEREST-EXPENSE> 0
<INCOME-PRETAX> 4,344,707
<INCOME-TAX> 1,559,061
<INCOME-CONTINUING> 2,785,646
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 2,785,646
<EPS-PRIMARY> .23
<EPS-DILUTED> .23
</TABLE>
