<COVER LETTER>
GOLDEN ENTERPRISES, INC.
2101 MAGNOLIA AVENUE SOUTH
SUITE 212
BIRMINGHAM, ALABAMA 35205
205-326-6101
January 9, 1997
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
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, 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 December 31, 1996.
Outstanding at
Class December 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 -
November 30, 1996 and May 31, 1996 3
Consolidated Condensed Statements of Income -
Three Months Ended and Six Months Ended
November 30, 1996 and 1995 4
Consolidated Condensed Statements of Cash
Flows - Six Months Ended
November 30, 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
<TABLE>
GOLDEN ENTERPRISES, INC. AND SUBSIDIARIES
CONSOLIDATED CONDENSED BALANCE SHEETS
<CAPTION>
November 30, May 31,
1996 1996
____________ _________
(Unaudited) (Audited)
ASSETS
<S> <C> <C>
Cash and cash equivalents $ 306,015 $ 227,173
Marketable securities $ 4,628,179 $ 7,260,285
Receivables, net $11,230,663 $10,134,603
Inventories:
Raw material and supplies $ 3,710,965 $ 2,191,788
Finished goods $ 2,893,576 $ 2,580,584
___________ ___________
$ 6,604,541 $ 4,772,372
___________ ___________
Current assets:
Prepaid expenses $ 2,975,199 $ 2,305,346
___________ ___________
Total current assets $25,744,597 $24,699,779
___________ ___________
Property, plant and equipment, net $22,491,122 $21,732,509
Other assets $ 2,413,938 $ 2,413,938
___________ ___________
$50,649,657 $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 $ 6,667,130 $ 4,038,743
Accrued and deferred income taxes $ 289,973 $ 289,973
Other accrued expenses $ 1,395,659 $ 1,318,263
Current installments of long-term debt $ 0 $ 0
___________ ___________
Total current Liabilities $ 8,352,762 $ 5,646,979
___________ ___________
Long-term debt less current maturities $ 936,201 $ 823,227
___________ ___________
Deferred income taxes $ 1,828,707 $ 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 $33,120,773 $34,170,713
___________ ___________
$48,833,520 $49,883,460
Less: Cost of common shares in
treasury (1,566,843 shares at
November 30, 1996 and 1,566,843
shares at May 31, 1996) $-9,301,533 $-9,301,533
___________ ___________
Total stockholders' equity $39,531,987 $40,581,927
___________ ___________
Total $50,649,657 $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 Six Months Ended
November 30, November 30,
___________________________ ___________________________
1996 1995 1996 1995
___________ ___________ ___________ ___________
REVENUES:
<S> <C> <C> <C> <C>
Net Sales $32,737,384 $29,497,322 $66,821,607 $62,373,235
Other operating revenues $ 247,622 $ 122,387 $ 424,383 $ 275,531
Investment income $ 81,315 $ 209,307 $ 166,058 $ 427,506
___________ ___________ ___________ ___________
Total revenues $33,066,321 $29,829,016 $67,412,048 $63,076,272
___________ ___________ ___________ ___________
COSTS AND EXPENSES:
Cost of sales $15,064,595 $13,416,247 $30,326,749 $27,650,850
Selling, general and
administrative expense $17,058,061 $15,180,138 $34,284,391 $31,904,049
Interest $ 0 $ 0 $ 0 $ 0
___________ ___________ ___________ ___________
Total costs and expenses $32,122,656 $28,596,385 $64,611,140 $59,554,899
___________ ___________ ___________ ___________
Income before income taxes $ 943,665 $ 1,232,631 $ 2,800,908 $ 3,521,373
Income taxes $ 293,663 $ 397,042 $ 951,932 $ 1,244,961
___________ ___________ ___________ ___________
Net income $ 650,002 $ 835,589 $ 1,848,976 $ 2,276,412
___________ ___________ ___________ ___________
___________ ___________ ___________ ___________
PER SHARE OF COMMON STOCK:
Net income $ .05 $ .07 $ .15 $ .19
___________ ___________ ___________ ___________
___________ ___________ ___________ ___________
Weighted average number of common
shares outstanding 12,205,950 12,261,950 12,205,950 12,261,950
___________ ___________ ___________ ___________
___________ ___________ ___________ ___________
Cash dividend paid per share of
common stock $ .12 $ .1175 $ .2375 $ .2325
___________ ___________ ___________ ___________
___________ ___________ ___________ ___________
<FN>
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
August 31,
___________________________
1996 1995
___________ ___________
Cash flows from operating activities:
<S> <C> <C>
Net income $ 1,848,976 $ 2,276,412
Adjustment to reconcile net income
to net cash provided by operating
activities:
Depreciation and amortization $ 1,429,946 $ 1,179,640
Compensation related to stock plan $ 0 $ 0
Salary Continuation Benefits $ 112,974 $ 112,152
Deferred income taxes $ 34,614 $ -57,834
Gain on sale of equipment $ -227,132 $ -159,172
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 $-1,096,060 $ 1,661,072
Decrease (increase) in inventories $-1,832,169 $-1,247,508
Decrease (increase) in prepaid
expenses $ -669,853 $-1,232,876
Decrease (increase) in other
assets-long term $ 0 $ 196
Increase (decrease) in accounts
payable and checks outstanding
in excess of bank balances $ 2,628,387 $ 1,342,999
Increase (decrease) in accrued
income taxes $ 0 $ -135,217
Increase (decrease) in accrued
expenses $ 77,396 $ 989
___________ ___________
$ 2,307,079 $ 3,740,853
___________ ___________
Cash flows from investing activities:
Purchase of property, plant
and equipment $-2,163,218 $-3,083,742
Proceeds from sale of equipment $ 201,791 $ 192,951
Proceeds from sale of discontinued
operations $ 0 $ 0
Net decrease (increase) in
marketable securities $ 2,632,106 $ 2,751,939
___________ ___________
Net cash provided by (used in)
investing activities $ 670,679 $ -138,852
___________ ___________
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 $-2,898,916 $-2,850,910
___________ __________
Net cash used in financing
activities $-2,898,916 $-2,850,910
___________ ___________
Net (decrease) increase in cash
and cash equivalents $ 78,842 $ 751,091
Cash and cash equivalents at
beginning of year $ 227,173 $ 623,592
___________ ___________
Cash and cash equivalents at
end of quarter $ 306,015 $ 1,374,683
___________ ___________
___________ ___________
Supplemental information:
Cash paid during the year for:
Income taxes $ 783,902 $ 1,993,413
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
November 30, 1996 and May 31, 1996, and its results of
operations for the three and six months ended November 30,
1996 and 1995 and its cash flow for the six months ended
November 30, 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 and six months ended
November 30, 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 $17.4
million at the end of the second quarter. Net cash provided by
operating activities amounted to $2.3 million for the six months this
year compared to $3.7 million for last year's six months.
Additions to property, plant and equipment, net of disposals,
were $2.2 million this year and $3.0 million last year. Cash
dividends of $2.90 million were paid during the first six months of
this year compared to $2.85 million last year. No cash was used to
purchase treasury stock this year or last year, and $2.63 million
of cash was provided by a net decrease in marketable securities this
year compared to $2.75 million last yer. The Company's current ratio
was 3.08 to 1.00 at November 30, 1996.
Operating Results
For the three months ended November 30, 1996, total revenues
increased 10.85% from the comparable period in fiscal 1996. Cost of
sales was 46.0% of net sales compared to 45.5% last year. Selling,
general and administrative expenses were 52.1% of net sales this year
and 51.5% 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 6.87% from the
comparable period in fiscal 1996. Cost of sales was 45.4% of net
sales compared to44.3% last year, Selling, general and administrtive
expenses were 51.3% 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 8.6% this year compared to 17.0% last year.
The decrease was due to a dollar decrease in investment income of 61.2%.
For the six months, investment income was 5.9% of pre-tax income
this year and 12.1% last year. For the six months, investment income
dollars decreased 61.2%.
The Company's effective tax rate for the second quarter was 31.1%
compared to 32.2% for last year's second quarter and 34.0% versus 35.4%
for the six 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 November 30,
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: January 9, 1997 /s/ John S. Stein
____________________________
John S. Stein
Chairman, President and
Chief Executive Officer
Dated: January 9, 1997 /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-31-1997
<PERIOD-END> NOV-30-1996
<CASH> 306,015
<SECURITIES> 4,628,179
<RECEIVABLES> 11,258,663
<ALLOWANCES> 28,000
<INVENTORY> 6,604,541
<CURRENT-ASSETS> 25,744,597
<PP&E> 78,342,266
<DEPRECIATION> 55,851,144
<TOTAL-ASSETS> 50,649,657
<CURRENT-LIABILITIES> 8,352,762
<BONDS> 0
0
0
<COMMON> 9,219,195
<OTHER-SE> 30,312,792
<TOTAL-LIABILITY-AND-EQUITY> 50,649,657
<SALES> 66,821,607
<TOTAL-REVENUES> 67,412,048
<CGS> 30,326,749
<TOTAL-COSTS> 64,611,140
<OTHER-EXPENSES> 0
<LOSS-PROVISION> 18,000
<INTEREST-EXPENSE> 0
<INCOME-PRETAX> 2,800,908
<INCOME-TAX> 951,932
<INCOME-CONTINUING> 1,848,976
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 1,848,976
<EPS-PRIMARY> .15
<EPS-DILUTED> .15
</TABLE>