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, 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 September 30, 1996.
Outstanding at
Class September 30, 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 -
August 31, 1996 and May 31, 1996 3
Consolidated Condensed Statements of Income -
Three Months Ended August 31, 1996 and 1995 4
Consolidated Condensed Statements of Cash
Flows - Three Months Ended
August 31, 1996 and 1995 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 1. FINANCIAL INFORMATION
GOLDEN ENTERPRISES, INC. AND SUBSIDIARIES
CONSOLIDATED CONDENSED BALANCE SHEETS
August 31, May 31,
1996 1995
____________ _________
(Unaudited) (Audited)
ASSETS
Cash and cash equivalents $ 1,037,459 $ 227,173
Investment Securities $ 8,320,729 $ 7,260,285
Receivables, net $10,518,255 $10,134,603
Inventories:
Raw material and supplies $ 2,268,185 $ 2,191,788
Finished goods $ 2,511,301 $ 2,580,584
___________ ___________
$ 4,779,486 $ 4,772,372
___________ ___________
Current assets:
Prepaid expenses $ 2,086,454 $ 2,305,346
___________ ___________
Total current assets $26,742,383 $24,699,779
___________ ___________
Property, plant and equipment, net $21,982,284 $21,732,509
Other assets $ 2,413,938 $ 2,413,938
___________ ___________
$51,138,605 $48,846,226
___________ ___________
___________ ___________
LIABILITIES AND STOCKHOLDERS' EQUITY
Current Liabilities:
Notes payable, principally to banks $ 0 $ 0
Accounts payable & checks outstanding
in excess of bank bal $ 6,578,380 $ 4,038,743
Accrued and deferred income taxes $ 479,695 $ 289,973
Other accrued expenses $ 1,040,578 $ 1,318,263
Current installments of long-term debt $ 0 $ 0
___________ ___________
Total current Liabilities $ 8,098,653 $ 5,646,979
___________ ___________
Long-term debt less current maturities $ 879,714 $ 823,227
___________ ___________
Deferred income taxes $ 1,813,539 $ 1,794,093
___________ ___________
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 $ 6,493,552 $ 6,493,552
Retained earnings $33,935,485 $34,170,713
___________ ___________
$49,648,232 $49,883,460
Less: Cost of common shares in
treasury (1,566,843 shares at
August 31, 1996 and 1,566,843
shares at May 31, 1996) $-9,301,533 $-9,301,533
___________ ___________
Total stockholders' equity $40,346,699 $40,581,927
___________ ___________
Total $51,138,605 $48,846,226
___________ ___________
___________ ___________
See Accompanying Notes to Consolidated Condensed Financial Statements
GOLDEN ENTERPRISES, INC. & SUBSIDIARIES
CONSOLIDATED CONDENSED STATEMENTS OF INCOME
(UNAUDITED)
Three Months Ended
August 31,
___________________________
1996 1995
___________ ___________
REVENUES:
Net Sales $34,084,223 $32,875,913
Other operating revenues $ 176,761 $ 153,144
Investment income $ 84,743 $ 218,199
___________ ___________
Total revenues $34,345,727 $33,247,256
___________ ___________
COSTS AND EXPENSES:
Cost of sales $15,262,154 $14,234,603
Selling, general and
administrative expense $17,226,330 $16,723,911
Interest $ 0 $ 0
___________ ___________
Total costs and expenses $32,488,484 $30,958,514
___________ ___________
Income before income taxes $ 1,857,243 $ 2,288,742
Income taxes $ 658,269 $ 847,919
___________ ___________
Net income $ 1,198,974 $ 1,440,823
___________ ___________
___________ ___________
PER SHARE OF COMMON STOCK:
Net income $ .10 $ .12
___________ ___________
___________ ___________
Weighted average number of common
shares outstanding 12,205,950 12,261,950
___________ ___________
___________ ___________
Cash dividend paid per share of
common stock .1175 .1150
___________ ___________
___________ ___________
See Accompanying Notes to Consolidated Condensed Financial Statements.
GOLDEN ENTERPRISES, INC. AND SUBSIDIARIES
CONSOLIDATED CONDENSED STATEMENTS OF CASH FLOWS
(UNAUDITED)
THREE MONTHS ENDED
August 31,
___________________________
1996 1995
___________ ___________
Cash flows from operating activities:
Net income $ 1,198,974 $ 1,440,823
Adjustment to reconcile net income
to net cash provided by operating
activities:
Depreciation and amortization $ 727,842 $ 585,538
Compensation related to stock plan $ 0 $ 0
Salary Continuation Benefits $ 56,487 $ 56,076
Deferred income taxes $ 19,446 $ -36,760
Gain on sale of equipment $ -149,890 $ -91,119
Changes in operating assets and
liabilities:
Decrease (increase) in accounts
receivable $ 383,652 $ 927,409
Decrease (increase) in inventories $ -7,114 $ 130,430
Decrease (increase) in prepaid
expenses $ 218,892 $ -427,896
Decrease (increase) in other
assets-long term $ 0 $ -5
Increase (decrease) in accounts
payable and checks outstanding
in excess of bank balances $ 2,539,637 $ 1,747,893
Increase (decrease) in accrued
income taxes $ 189,722 $ 739,772
Increase (decrease) in accrued
expenses $ -277,685 $ -130,196
___________ ___________
$ 4,132,659 $ 4,941,965
___________ ___________
Cash flows from investing activities:
Purchase of property, plant
and equipment $ -943,100 $-1,458,223
Proceeds from sale of equipment $ 115,373 $ 100,466
Net decrease (increase) in
investment securities $-1,060,444 $-1,589,045
___________ ___________
Net cash provided by (used in)
investing activities $-1,888,171 $-2,946,802
___________ ___________
Cash flows from financing activities:
Payments of current installments
of long-term debt $ 0 $ 0
Purchase of treasury stock $ 0 $ 0
Proceeds from sale of treasury
stock $ 0 $ 0
Cash dividend paid $-1,434,202 $ 1,410,128
___________ __________
Net cash used in financing
activities $-1,434,202 $-1,410,128
___________ ___________
Net (decrease) increase in cash
and cash equivalents $ 810,286 $ 585,035
Cash and cash equivalents at
beginning of year $ 227,173 $ 623,592
___________ ___________
Cash and cash equivalents at
end of quarter $ 1,037,459 $ 1,208,627
___________ ___________
___________ ___________
Supplemental information:
Cash paid during the year for:
Income taxes $ 14,739 $ 144,907
Interest $ 0 $ 0
See Accompanying Notes to Consolidated Condensed Financial Statements.
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, 1996 and May 31, 1996, and its results of
operations for the three months ended August 31, 1996 and 1995
and its cash flow for the three months ended August 31, 1996
and 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, 1996
which is incorporated by reference in Form 10-K.
2. The results of operations for the three months ended August
31, 1996 and 1995 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 $19.1 million at June 1, 1996 and $18.6
million at the end of the first quarter. Net cash provided by
operating activities amounted to $4.1 million for the quarter this
year compared to $4.9 million for last year's first quarter.
Additions to property, plant and equipment, net of disposals,
were $0.98 million this year and $1.45 million last year. Cash
dividends of $1.43 million were paid during this year's first
quarter compared to $1.41 million last year. No cash was used to
purchase treasury stock this year or last year, and $1.06 million
of cash was used to increase investment securities this year
compared to $1.59 million last year. The Company's current ratio
was 3.30 to 1.00 at August 31, 1996.
Operating Results
For the three months ended August 31, 1996, total revenues
increased 3.3% from the comparable period in fiscal 1996. Cost of
sales was 44.8% of net sales compared to 43.3% last year. This
percentage increased due to higher prices of most raw materials and
packaging materials. Selling, general and administrative expenses
were 50.5% of net sales this year and 50.9% last year.
The Company's investment income as a percentage of pre-tax
income was 4.6% this year compared to 9.5% last year. This was due
to an actual dollar decrease in investment income of 61.2%.
The Company's effective tax rate for the first quarter was
35.4% compared to 37.0% 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,
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: October 10, 1996 /s/ John S. Stein
____________________________
John S. Stein
Chairman, President and
Chief Executive Officer
Dated: October 10, 1996 /s/ John H. Shannon
_____________________________
John H. Shannon
Vice President/Controller
(Principal Accounting
Officer)
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