<LETTER>
GOLDEN ENTERPRISES, INC.
January 9, 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 November 30, 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 December 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 -
November 30, 1995 and May 31, 1995 3
Consolidated Condensed Statements of Income -
Three Months Ended and Six Months Ended
November 30, 1995 and 1994 4
Consolidated Condensed Statements of Cash
Flows - Six Months Ended
November 30, 1995 and 1994 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>
November 30, May 31,
1995 1995
___________ ___________
(Unaudited) (Audited)
ASSETS
<S> <C> <C>
Cash and cash equivalents 1,374,683 623,592
Marketable securities 11,076,724 13,828,663
Receivables, net 9,208,627 10,869,699
Inventories:
Raw material and supplies 3,252,845 1,697,629
Finished goods 2,549,509 2,857,217
__________ __________
5,802,354 4,554,846
__________ __________
Current assets:
Prepaid expenses 3,201,727 1,968,851
__________ __________
Total current assets 30,664,115 31,845,651
__________ __________
Property, plant and equipment, net 20,006,369 18,136,045
Other assets 2,030,038 2,030,234
__________ __________
52,700,522 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 5,667,631 4,324,632
Accrued and deferred income taxes 291,246 426,463
Other accrued expenses 1,308,038 1,307,049
Current installments of long-term debt 0 0
__________ __________
Total current liabilities 7,266,915 6,058,144
__________ __________
Long-term debt less current maturities 711,074 598,922
__________ __________
Deferred income taxes 1,806,627 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 35,946,876 36,521,373
__________ __________
51,734,439 52,308,936
Less: Cost of common shares in treasury
(1,566,843 at November 30,1995 and
1,566,843 shares at May 31, 1995) (8,818,533) (8,818,533)
___________ __________
Total stockholders' equity 42,915,906 43,490,403
__________ __________
Total 52,700,522 52,011,930
__________ __________
__________ __________
See Accompanying Notes to Consolidated Condensed Financial Statements
</TABLE>
<TABLE>
GOLDEN ENTERPRISES, INC. & SUBSIDIARIES
CONSOLIDATED CONDENSED STATEMENTS OF INCOME
<CAPTION>
Three Months Ended Six Months Ended
November 30, November 30,
_______________________ _______________________
1995 1994 1995 1994
__________ __________ __________ __________
(UNAUDITED)
REVENUES:
<S> <C> <C> <C> <C>
Net Sales 29,497,322 29,917,557 62,373,235 61,405,444
Other operating revenues 122,387 99,637 275,531 303,993
Investment income 209,307 159,094 427,506 281,394
__________ __________ __________ __________
Total revenues 29,829,016 30,176,288 63,076,272 61,990,831
__________ __________ __________ __________
COSTS AND EXPENSES:
Cost of sales 13,416,247 12,887,187 27,650,850 26,538,966
Selling, general and
administrative expense 15,180,138 15,461,525 31,904,049 31,462,898
Interest 0 0 0 0
__________ __________ __________ __________
Total costs and expenses 28,596,385 28,348,712 59,554,899 58,001,864
__________ __________ __________ __________
Income from continuing
operations before
income taxes 1,232,631 1,827,576 3,521,373 3,988,967
Income taxes 397,042 650,794 1,244,961 1,494,476
__________ __________ __________ __________
Income from continuing
operations 835,589 1,176,782 2,276,412 2,494,491
Discontinued operations (Note):
Loss (income) from
operations of discontinued
business, net of related
income taxes 0 1,171 0 24,519
0 0
__________ __________ __________ __________
Net income 835,589 1,177,953 2,276,412 2,519,010
Per share of common
stock (Note 1):
Income from continuing
operations $0.07 $0.09 $0.19 $0.20
Income from operations of
discontinued business $0.00 $0.00 $0.00 $0.00
__________ __________ __________ __________
Net income $0.07 $0.09 $0.19 $0.20
__________ __________ __________ __________
__________ __________ __________ __________
Weighted average number of
common shares outstanding 12,261,950 12,406,592 12,261,950 12,446,174
__________ __________ __________ __________
__________ __________ __________ __________
Cash dividend paid per
share of common stock $.1175 $.1150 $.2325 $.2275
__________ __________ __________ __________
__________ __________ __________ __________
See Accompanying Notes to Consolidated Condensed Financial Statements.
</TABLE>
<TABLE>
GOLDEN ENTERPRISES, INC. AND SUBSIDIARIES
CONSOLIDATED CONDENSED STATEMENTS OF CASH FLOWS
(UNAUDITED)
<CAPTION>
SIX MONTHS ENDED
November 30,
_________________________
1995 1994
Cash flows from operating activities:
<S> <C> <C>
Net income 2,276,412 2,519,010
Adjustment to reconcile net income to net
cash provided by operating activities:
Depreciation and amortization and amortization 1,179,640 1,403,708
Compensation related to stock plan 0 0
Salary Continuation Benefits 112,152 132,265
Deferred income taxes (57,834) (104,311)
Gain on sale of equipment (159,172) (220,196)
Income from operations of discontinued business 0 (24,519)
Dividends received from discontinued business 0 70,000
Changes in operating assets and liabilities:
Decrease (increase) in accounts receivable 1,661,072 801,842
Decrease (increase) in inventories (1,247,508) (1,266,145)
Decrease (increase) in prepaid expenses (1,232,876) (1,390,839)
Decrease (increase) in other assets-long term 196 (10)
Increase (decrease) in accounts payable
and checks outstanding in excess of
bank balances 1,342,999 2,122,146
Increase (decrease) in accrued income taxes (135,217) (12,387)
Increase (decrease) in accrued expenses 989 31,301
_________ _________
3,740,853 4,061,865
_________ _________
Cash flows from investing activities:
Purchase of property, plant and equipment (3,083,742) (575,928)
Proceeds from sale of equipment 192,951 265,921
Proceeds from sale of discontinued operations 0 0
Net decrease (increase) in marketable securities 2,751,939 1,914,107
_________ _________
Net cash provided by (used in)
investing activities (138,852) 1,604,100
_________ _________
Cash flows from financing activities:
Payments of current installments
of long-term debt 0 0
Purchase of treasury stock 0 (928,986)
Proceeds from sale of treasury stock 0 22,500
Cash dividend paid (2,850,910) (2,833,415)
___________ __________
Net cash used in financing activities (2,850,910) (3,739,901)
__________ _________
Net (decrease) increase in cash
and cash equivalents 751,091 1,926,064
Cash and cash equivalents at beginning of year 623,592 642,064
__________ __________
Cash and cash equivalents at end of quarter 1,374,683 2,568,128
__________ __________
__________ __________
Supplemental information:
Cash paid during the year for:
Income taxes 1,993,413 2,148,980
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
November 30, 1995 and May 31, 1995, and its results of
operations for the three and six months ended November 30,
1995 and 1994 and its cash flow for the six months ended
November 30, 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 and six months ended
November 30, 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 $23.4 million at the end of the second quarter. Net
cash provided by operating activities amounted to
$3.7 million for the six months this year compared to $4.1
million for last year's first six months.
Additions to property, plant and equipment, net
of disposals, were $3.0 million this year and $0.5 million
last year. Cash dividends of $2.85 million were paid during
the first six months of this year compared to $2.83 million
last year. No cash was used to purchase treasury stock this
year while $0.93 million was used last year, and $2.75
million of cash was provided by a net decrease in marketable
securities this year compared to $1.91 million last year.
The Company's current ratio was a healthy 4.22 to 1.00 at
November 30, 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 November 30, 1995, total
revenues were down 1.15% from the comparable period in
fiscal 1995. Cost of sales was 45.5% of net sales compared
to 43.1% last year. Selling, general and administrative
expenses were 51.5% of net sales this year and 51.7% last
year.
For the year-to-date, total revenues increased 1.75%
from the comparable period in fiscal 1995. Cost of sales was
44.3% of net sales compared to 43.2% last year. Selling,
general and administrative expenses were 51.2% of net sales
this year and 51.2% last year.
The Company's second quarter investment income as a
percentage of pre-tax income was 17.0% this year compared to
8.7% last year. The increase was due to the decrease in
operating income, and the fact that investment income dollars
increased 31.6%.
For the six months, investment income was 12.1% of
pre-tax income this year and 7.1% last year. For the six
months, investment income dollars increased 51.9%.
The Company's effective tax rate for the second quarter
was 32.2% compared to 35.6% for last year's second quarter
and 35.4% versus 37.5% for the six months. The effective tax
rates are lower this year than last year because tax-exempt
interest income as a percentage of total pre-tax income was
higher this year.
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
November 30, 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: January 9, 1996 /s/ Sloan Y. Bashinsky, Sr.
_____________________________
Sloan Y. Bashinsky, Sr.
Chairman of the Board
Dated: January 9, 1996 /s/ John H. Shannon
_________________________
John H. Shannon
Vice President/Controller
(Principal Accounting
Officer)
<TABLE> <S> <C>
<ARTICLE> 5
<S> <C>
<PERIOD-TYPE> 6-MOS
<FISCAL-YEAR-END> MAY-31-1996
<PERIOD-END> NOV-30-1995
<CASH> 1,374,683
<SECURITIES> 11,076,724
<RECEIVABLES> 9,208,627
<ALLOWANCES> 28,000
<INVENTORY> 5,802,354
<CURRENT-ASSETS> 30,664,115
<PP&E> 73,767,721
<DEPRECIATION> 53,761,352
<TOTAL-ASSETS> 52,700,522
<CURRENT-LIABILITIES> 7,266,915
<BONDS> 0
0
0
<COMMON> 9,219,195
<OTHER-SE> 33,696,711
<TOTAL-LIABILITY-AND-EQUITY> 52,700,522
<SALES> 62,373,235
<TOTAL-REVENUES> 63,076,272
<CGS> 27,650,850
<TOTAL-COSTS> 59,554,899
<OTHER-EXPENSES> 0
<LOSS-PROVISION> 18,000
<INTEREST-EXPENSE> 0
<INCOME-PRETAX> 3,521,373
<INCOME-TAX> 1,244,961
<INCOME-CONTINUING> 2,276,412
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 2,276,412
<EPS-PRIMARY> .19
<EPS-DILUTED> .19
</TABLE>
