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, 1997
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, 1997.
Outstanding at
Class March 31, 1997
_________________________________ __________________
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 28, 1997 and February 29, 1996 3
Consolidated Condensed Statements of Income -
Three Months Ended and Nine Months Ended
February 28, 1997 and February 29, 1996 4
Consolidated Condensed Statements of Cash
Flows - Nine Months Ended
February 28, 1997 and February 29, 1996 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
<TABLE>
GOLDEN ENTERPRISES, INC. AND SUBSIDIARIES
CONSOLIDATED CONDENSED BALANCE SHEETS
<CAPTION>
February 28, May 31,
1997 1996
____________ _________
(Unaudited) (Audited)
ASSETS
<S> <C> <C>
Cash and cash equivalents $ 1,372,577 $ 227,173
Investment securities $ 3,685,071 $ 7,260,285
Receivables, net $11,913,377 $10,134,603
Inventories:
Raw material and supplies $ 3,155,264 $ 2,191,788
Finished goods $ 2,778,457 $ 2,580,584
___________ ___________
$ 5,933,721 $ 4,772,372
___________ ___________
Current assets:
Prepaid expenses $ 2,633,089 $ 2,305,346
___________ ___________
Total current assets $25,537,835 $24,699,779
___________ ___________
Property, plant and equipment, net $22,365,020 $21,732,509
Other assets $ 2,413,938 $ 2,413,938
___________ ___________
$50,316,793 $48,846,226
___________ ___________
___________ ___________
LIABILITIES AND STOCKHOLDERS' EQUITY
Current Liabilities:
Notes payable, principally to banks $ 0 $ 0
Accounts payable & checks outstanding
in excess of bank balance $ 7,350,976 $ 4,038,743
Accrued and deferred income taxes $ 289,973 $ 289,973
Other accrued expenses $ 1,283,455 $ 1,318,263
Current installments of long-term debt $ 0 $ 0
___________ ___________
Total current Liabilities $ 8,924,404 $ 5,646,979
___________ ___________
Long-term debt less current maturities $ 992,688 $ 823,227
___________ ___________
Deferred income taxes $ 1,861,397 $ 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 $32,127,090 $34,170,713
___________ ___________
$47,839,837 $49,883,460
Less: Cost of common shares in
treasury (1,566,843 shares at
February 28, 1997 and 1,566,843
shares at May 31, 1996) $-9,301,533 $-9,301,533
___________ ___________
Total stockholders' equity $38,538,304 $40,581,927
___________ ___________
Total $50,316,793 $48,846,226
___________ ___________
___________ ___________
<FN>
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 28, February 29, February 28, February 29,
___________________________ ___________________________
1997 1996 1997 1996
___________ ___________ ____________ ___________
REVENUES:
<S> <C> <C> <C> <C>
Net Sales $35,574,158 $30,975,965 $102,395,765 $93,349,200
Other operating revenues $ 91,955 $ 45,789 $ 516,338 $ 321,320
Investment income $ 70,063 $ 156,669 $ 236,121 $ 584,175
___________ ___________ ____________ ___________
Total revenues $35,736,176 $31,178,423 $103,148,224 $94,254,695
___________ ___________ ____________ ___________
COSTS AND EXPENSES:
Cost of sales $16,559,061 $13,948,687 $ 46,885,810 $41,599,537
Selling, general and
administrative expense $18,390,622 $16,406,402 $ 52,675,013 $48,310,451
Interest $ 0 $ 0 $ 0 $ 0
___________ ___________ ____________ ___________
Total costs and expenses $34,949,683 $30,355,089 $ 99,560,823 $89,909,988
___________ ___________ ____________ ___________
Income before income taxes $ 786,493 $ 823,334 $ 3,587,401 $ 4,344,707
Income taxes $ 315,462 $ 314,100 $ 1,267,394 $ 1,559,061
___________ ___________ ____________ ___________
Net income $ 471,031 $ 509,234 $ 2,320,007 $ 2,785,646
___________ ___________ ____________ ___________
___________ ___________ ____________ ___________
PER SHARE OF COMMON STOCK:
Net income $ .04 $ .04 $ .19 $ .23
___________ ___________ ____________ ___________
___________ ___________ ____________ ___________
Weighted average number of common
shares outstanding 12,205,950 12,243,488 12,205,950 12,255,819
___________ ___________ ____________ ___________
___________ ___________ ____________ ___________
Cash dividend paid per share of
common stock $ .12 $ .1175 $ .3575 $ .3500
___________ ___________ ____________ ___________
___________ ___________ ____________ ___________
<FN>
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 28, February 29,
___________________________
1997 1996
___________ ___________
Cash flows from operating activities:
<S> <C> <C>
Net income $ 2,320,007 $ 2,785,646
Adjustment to reconcile net income
to net cash provided by operating
activities:
Depreciation and amortization $ 2,131,848 $ 1,794,760
Compensation related to stock plan $ 0 $ 0
Salary Continuation Benefits $ 169,461 $ 168,229
Deferred income taxes $ 67,304 $ -54,844
Gain on sale of equipment $ -284,107 $ -183,537
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 $-1,778,774 $ 1,260,389
Decrease (increase) in inventories $-1,161,349 $ -388,585
Decrease (increase) in prepaid
expenses $ -327,743 $-1,338,637
Decrease (increase) in other
assets-long term $ 0 $ 258
Increase (decrease) in accounts
payable and checks outstanding
in excess of bank balances $ 3,312,233 $ 1,348,208
Increase (decrease) in accrued
income taxes $ 0 $ -12,785
Increase (decrease) in accrued
expenses $ -34,808 $ -36,901
___________ ___________
$ 4,414,072 $ 5,367,771
___________ ___________
Cash flows from investing activities:
Purchase of property, plant
and equipment $-2,752,752 $-5,540,350
Proceeds from sale of equipment $ 272,500 $ 217,428
Proceeds from sale of discontinued
operations $ 0 $ 0
Net decrease (increase) in
marketable securities $ 3,575,214 $ 4,744,916
___________ ___________
Net cash provided by (used in)
investing activities $ 1,094,962 $ -578,006
___________ ___________
Cash flows from financing activities:
Payments of current installments
of long-term debt $ 0 $ 0
Purchase of treasury stock $ 0 $ -483,000
Proceeds from sale of treasury
stock $ 0 $ 0
Cash dividend paid $-4,363,630 $-4,291,692
___________ __________
Net cash used in financing
activities $-4,363,630 $-4,774,692
___________ ___________
Net (decrease) increase in cash
and cash equivalents $ 1,145,404 $ 15,073
Cash and cash equivalents at
beginning of year $ 227,173 $ 623,592
___________ ___________
Cash and cash equivalents at
end of quarter $ 1,372,577 $ 638,665
___________ ___________
___________ ___________
Supplemental information:
Cash paid during the year for:
Income taxes $ 838,023 $ 2,156,521
Interest $ 0 $ 0
<FN>
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 28, 1997 and May 31, 1996, and its results of
operations for the three and nine months ended February 28,
1997 and February 29, 1996 and its cash flows for the nine
months ended February 28, 1997 and February 29, 1996.
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 and nine months ended
February 28, 1997 and February 29, 1996 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 $16.6
million at the end of the third quarter. Net cash provided by
operating activities amounted to $4.4 million for the nine months this
year compared to $5.4 million for last year's nine months.
Additions to property, plant and equipment, net of disposals,
were $2.8 million this year and $5.5 million last year. Cash
dividends of $4.36 million were paid during the first nine months of
this year compared to $4.29 million last year. No cash was used to
purchase treasury stock this year, and $0.48 million was used last
year, and $3.58 million of cash was provided by a net decrease in
investment securities this year compared to $4.74 million last year.
The Company's current ratio was a 2.86 to 1.00 at February 28, 1997.
Operating Results
For the three months ended February 28, 1997, total revenues
increased 14.62% from the comparable period in fiscal 1996. Cost of
sales was 46.5% of net sales compared to 45.0% last year. Selling,
general and administrative expenses were 51.7% of net sales this year
and 53.0% last year. The increased costs and expenses were due to
expansion into new products and market areas.
For the year-to-date, total revenues increased 9.44% from the
comparable period in fiscal 1996. Cost of sales was 45.8% of net
sales compared to 44.6% last year, Selling, general and administrtive
expenses were 51.4% of net sales this year and 51.8% last year.
The Company's third quarter investment income as a percentage
of pre-tax income was 8.9% this year compared to 19.0% last year.
The decrease was due to a dollar decrease in investment income of 55.3%.
For the nine months, investment income was 6.6% of pre-tax income
this year and 13.4% last year. For the nine months, investment income
dollars decreased 59.6%.
The Company's effective tax rate for the third quarter was 40.1%
compared to 38.1% for last year's third quarter and 35.3% versus 35.9%
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,
1997.
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 11, 1997 /s/ John S. Stein
____________________________
John S. Stein
Chairman, President and
Chief Executive Officer
Dated: April 11, 1997 /s/ John H. Shannon
_____________________________
John H. Shannon
Vice President/Controller
(Principal Accounting
Officer)
<TABLE> <S> <C>
<ARTICLE> 5
<S> <C>
<PERIOD-TYPE> 9-MOS
<FISCAL-YEAR-END> MAY-31-1997
<PERIOD-END> FEB-28-1997
<CASH> 1,372,577
<SECURITIES> 3,685,071
<RECEIVABLES> 11,950,377
<ALLOWANCES> 37,000
<INVENTORY> 5,933,721
<CURRENT-ASSETS> 25,537,835
<PP&E> 78,837,531
<DEPRECIATION> 56,472,511
<TOTAL-ASSETS> 50,316,793
<CURRENT-LIABILITIES> 8,924,404
<BONDS> 0
0
0
<COMMON> 9,219,195
<OTHER-SE> 29,319,109
<TOTAL-LIABILITY-AND-EQUITY> 50,316,793
<SALES> 102,395,765
<TOTAL-REVENUES> 103,148,224
<CGS> 46,885,810
<TOTAL-COSTS> 99,566,823
<OTHER-EXPENSES> 0
<LOSS-PROVISION> 27,000
<INTEREST-EXPENSE> 0
<INCOME-PRETAX> 3,587,401
<INCOME-TAX> 1,267,394
<INCOME-CONTINUING> 2,320,007
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 2,320,007
<EPS-PRIMARY> .19
<EPS-DILUTED> .19
</TABLE>
