File No. 0-7277
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, DC 20549
FORM 10-Q
QUARTERLY REPORT UNDER SECTION 13
OF THE SECURITIES EXCHANGE ACT OF 1934
FOR THE FISCAL QUARTER ENDED AUGUST 11, 1995
WSMP, INC.
Incorporated in North Carolina
CLAREMONT, NORTH CAROLINA 28610 56-0945643
(704) 459 - 7626 (I.R.S. Employer Identification No.)
WSMP, Inc. 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 and has been
subject to such filing requirements for the past 90 days.
The number of shares of WSMP, Inc. Common Stock outstanding as of September 20,
1995 was 2,760,338.
WSMP, INC. AND SUBSIDIARIES
INDEX
Part I. Financial Information:
------------------------------------------------
Page No.
---------
Item 1. Financial Statements
Consolidated Condensed Balance Sheets -
August 11, 1995 and February 24, 1995 ...............................1-2
Consolidated Condensed Statements of
Operations and Retained Earnings -
Three Months Ended August 11, 1995
and August 12, 1994 and Six Months Ended
August 11, 1995 and August 12, 1994 .................................3-4
Consolidated Condensed Statements of Cash
Flows - Six Months Ended August 11, 1995 and
August 12, 1994 ......................................................5
Notes to Consolidated Condensed Financial
Statements ...........................................................6-7
Item 2. Management's Discussion and Analysis
of Financial Condition and Results of
Operations ..........................................................8-10
Part II. Other Information:
--------------------------------------------------
Item 4. Submission of Matters of a Vote of Security Holders ...........11
Item 6. Exhibits and Reports on Form 8-K ..............................11
Signatures .............................................................12
Index to Exhibits ......................................................13
Exhibit 11 - Computation of Earnings (Loss) per
Common and Common Equivalent Share ..................................14
PART I. FINANCIAL INFORMATION
ITEM 1. FINANCIAL STATEMENTS
WSMP, INC. AND SUBSIDIARIES
---------------------------------------------------
Consolidated Condensed Balance Sheets
(Unaudited)
August 11, February 24,
1995 1995
------------- -------------
ASSETS
- -------
Current assets:
Cash and cash equivalents $ 1,522,949 $ 940,120
Marketable equity securities 136,535 120,564
Accounts receivable and current portion of notes
receivable, net:
Trade and other 4,240,385 4,809,950
Related party 1,109,597 1,178,213
Inventories 4,748,464 5,126,335
Income taxes refundable, prepaid expenses and other 837,597 238,657
Deferred income taxes 255,372 259,821
------------ -------------
Total current assets 12,850,899 12,673,660
------------ -------------
Property, plant and equipment, net 25,547,325 27,157,884
------------ -------------
Other assets:
Properties held for sale 2,539,166 3,322,372
Excess of cost over fair value of net assets
of businesses acquired, net 680,702 696,456
Noncurrent notes receivable 582,594 368,181
Noncurrent related party notes receivable 592,058 833,110
Investment in affiliates 1,126,606 742,633
Other 1,013,567 927,105
------------ -------------
Total other assets 6,534,693 6,889,857
------------ -------------
Total assets $ 44,932,917 $ 46,721,401
============ =============
LIABILITIES AND SHAREHOLDERS' EQUITY
- ------------------------------------
Current liabilities:
Notes payable $ 4,000,000 $ 3,000,000
Current installments of long-term debt 2,711,879 2,939,844
Trade accounts payable 2,437,504 3,016,776
Income taxes payable 1,737 46,737
Other accrued liabilities 2,685,307 2,766,415
------------ -------------
Total current liabilities 11,836,427 11,769,772
Deferred franchise fees 5,000 30,000
Deferred income taxes 1,749,957 1,749,957
Long-term debt, excluding current installments 13,907,722 15,533,554
------------ -------------
Total liabilities 27,499,106 29,083,283
------------ -------------
Commitments and contingencies
Shareholders' equity:
Preferred stock- par value $.10, authorized
2,500,000 shares; no shares issued
Common stock - par value $1, authorized
10,000,000 shares; issued 2,710,338 shares at
August 11, 1995 and 2,660,338 shares at
February 24, 1995 2,710,338 2,660,338
Capital in excess of par value 6,484,347 6,389,347
Unrealized gain/(loss) on securities
available for sale, net of deferred
income taxes of $(1,098) at August 11,
1995 and $3,351 at February 24, 1995 1,708 (5,214)
Retained earnings 8,237,418 8,593,647
------------ ------------
Total shareholders' equity 17,433,811 17,638,118
------------ ------------
Total liabilities and shareholders' equity $ 44,932,917 $ 46,721,401
============ ============
WSMP, INC. AND SUBSIDIARIES
---------------------------------------------------
<TABLE>
Consolidated Condensed Statements of Operations and Retained Earnings
Three Months Ended August 11, 1995 and August 12, 1994
(Unaudited)
<CAPTION>
1995 1994
------ ------
<S> <C> <C>
Operating revenues:
Food sales $ 18,440,896 $ 21,088,165
Franchise, royalty and other fees (includes related
party transactions totaling $275,681 in 1995
and $242,378 in 1994) 716,910 732,961
------------- -------------
Total operating revenues 19,157,806 21,821,126
------------- -------------
Costs and expenses:
Cost of goods sold (includes related party
transactions totaling $100,826 in 1995
and $123,719 in 1994) 13,503,636 15,235,903
Operating expenses (includes related party
transactions totaling $100,373 in 1995
and $170,656 in 1994) 3,085,970 3,353,755
Selling, general and administrative expenses
(includes related party transactions totaling
$645,602 in 1995 and $635,701 in 1994) 1,983,017 1,945,187
Depreciation and amortization 621,865 656,620
------------- -------------
Total costs and expenses 19,194,488 21,191,465
------------- -------------
Operating income (loss) (36,682) 629,661
------------- -------------
Other income (expense):
Net loss on dispositions and write-downs
of assets (includes gain on sale of assets to
related parties totaling $128,320 in 1994) (51,046) (31,447)
Other income (including interest) (includes
related party transactions totaling $45,145
in 1995 and $49,793 in 1994) 149,751 323,378
Interest expense (455,772) (446,168)
Other expense (includes related party
transactions totaling $19,246 in 1995
and $33,488 in 1994) (247,845) (172,423)
-------------- -------------
Net other income (expense) (604,912) (326,660)
-------------- -------------
Earnings (loss) before income taxes (641,594) 303,001
Provision for income taxes (benefit) (277,706) 97,001
-------------- -------------
Net earnings (loss) $ (363,888) $ 206,000
============== =============
Retained earnings:
Balance at beginning of period $ 8,601,306 $ 8,391,604
Net earnings (loss) (363,888) 206,000
------------- -------------
Balance at end of period $ 8,237,418 $ 8,597,604
============= =============
Net earnings (loss) per common and common
equivalent share $ (.13) $ .07
============= ==============
See accompanying notes to unaudited consolidated condensed financial statements.
</TABLE>
WSMP, INC. AND SUBSIDIARIES
---------------------------------------------------
<TABLE>
Consolidated Condensed Statements of Operations and Retained Earnings
Six Months Ended August 11, 1995 and August 12, 1994
(Unaudited)
<CAPTION>
1995 1994
------- -------
<S> <C> <C>
Operating revenues:
Food sales $ 36,041,660 $ 41,507,461
Franchise, royalty and other fees (includes related
party transactions totaling $531,080 in 1995
and $486,362 in 1994) 1,428,679 1,413,449
------------- -------------
Total operating revenues 37,470,339 42,920,910
------------- -------------
Costs and expenses:
Cost of goods sold (includes related party
transactions totaling $204,116 in 1995 and
$247,677 in 1994) 25,878,907 29,759,090
Operating expenses (includes related party
transactions totaling $302,782 in 1995
and $395,690 in 1994) 6,156,652 6,837,278
Selling, general and administrative expenses
(includes related party transactions totaling
$1,150,643 in 1995 and $1,219,042 in 1994) 3,837,947 3,912,576
Depreciation and amortization 1,232,914 1,353,407
------------- -------------
Total costs and expenses 37,106,420 41,862,351
------------- -------------
Operating income 363,919 1,058,559
------------- -------------
Other income (expense):
Net gain (loss) on dispositions and write-downs
of assets (includes gain on sale of assets
to related parties totaling $128,320 in 1994) (51,506) 536,064
Other income (including interest) (includes
related party transactions totaling $94,955
in 1995 and $104,552 in 1994) 406,686 608,931
Interest expense (941,061) (905,126)
Other expense (includes related party transactions
totaling $43,427 in 1995 and $68,737 in 1994) (408,531) (368,919)
------------- -------------
Net other income (expense) (994,412) (129,050)
------------- --------------
Earnings (loss) before income taxes (630,493) 929,509
Provision for income taxes (benefit) (274,264) 362,509
------------- --------------
Net earnings (loss) $ (356,229) $ 567,000
============= ==============
Retained earnings:
Balance at beginning of period $ 8,593,647 $ 8,030,604
Net earnings (loss) (356,229) 567,000
------------ --------------
Balance at end of period $ 8,237,418 $ 8,597,604
============ ==============
Net earnings (loss) per common and common
equivalent share $ (.13) $ .20
============ ==============
See accompanying notes to unaudited consolidated condensed financial statements.
</TABLE>
WSMP, INC. AND SUBSIDIARIES
----------------------------------------------------
<TABLE>
Consolidated Condensed Statements of Cash Flows
Six Months Ended August 11, 1995 and August 12, 1994
(Unaudited)
<CAPTION>
1995 1994
--------- ---------
<S> <C> <C>
Cash flows from operating activities:
Net earnings (loss) $ (356,229) $ 567,000
------------- --------------
Adjustments to reconcile net earnings (loss) to net cash
provided by (used in) operating activities:
Depreciation and amortization 1,232,913 1,353,407
Depreciation of properties leased to others 139,386 191,711
Provision for losses on receivables 21,107 140,000
Net (gain)/loss on disposition and writedowns of assets 51,506 (536,064)
Other non-cash items 58,009 (353,658)
Changes in operating assets and liabilities (net of
effects from purchase of restaurant companies)
providing (using) cash:
Receivables 118,748 (389,801)
Inventories 377,871 (1,098,899)
Income taxes refundable, prepaid expenses and other (598,940) 136,365
Trade accounts payable and other accrued liabilities (705,380) (316,147)
------------- --------------
Total adjustments 695,220 (873,086)
------------- --------------
Net cash provided by (used in) operating activities 338,991 (306,086)
------------- --------------
Cash flows from investing activities:
Decrease (increase) in marketable equity securities (4,599) 3,199
Proceeds from sales of assets to related parties 623,734
Proceeds from sales of assets to others 1,377,775 1,849,188
Decrease in related party notes receivables 285,675 269,576
Decrease in other notes receivable 352,146 17,646
Deposits, net of refunds (169,829) (61,892)
Capital expenditures to related parties (159,822) (65,749)
Capital expenditures-others (344,739) (318,949)
Other investing activities (383,972) (50,500)
------------- --------------
Net cash provided by investing activities 952,635 2,266,253
------------- --------------
Cash flows from financing activities:
Principal payments on long-term debt (1,853,797) (1,801,606)
Proceeds from exercise of stock options 145,000
Net proceeds (repayments) under short-term borrowing agreements 1,000,000 (375,000)
------------- --------------
Net cash used in financing activities (708,797) (2,176,606)
------------- --------------
Net increase (decrease) in cash and cash equivalents 582,829 (216,439)
Cash and cash equivalents at beginning of period 940,120 1,235,089
------------- --------------
Cash and cash equivalents at end of period $ 1,522,949 $ 1,018,650
============= ==============
See accompanying notes to unaudited consolidated condensed financial statements.
</TABLE>
WSMP, INC. AND SUBSIDIARIES
--------------------------------------------------
Notes to Consolidated Condensed Financial Statements
(Unaudited)
1.In the opinion of the Company, the accompanying unaudited consolidated
condensed financial statements contain all adjustments (consisting of only
normal recurring accruals) necessary to present fairly the financial position
as of August 11, 1995 and February 24, 1995 and the results of operations
and the cash flows for the interim periods ended August 11, 1995 and August
12, 1994.
2.The results of operations for the interim periods ended August 11, 1995 and
August 12, 1994 are not necessarily indicative of the results to be expected
for the full year.
3.Financial statements for fiscal 1995 periods have been reclassified, where
applicable, to conform to financial statement presentation used in fiscal
1996 periods.
4.Earnings per share are based on the weighted average number of common shares
and dilutive common equivalent shares outstanding during each fiscal period.
Common equivalent shares relate to outstanding stock options. The weighted
average number of shares used in the calculation are 2,699,214 and 2,834,635
for the six months ended in 1995 and 1994, respectively. The weighted
average number of shares used in the calculation for the second fiscal
quarter in 1996 and 1995, are 2,710,338 and 2,829,459, respectively. Per
share amounts for fiscal 1995 periods retroactively reflect a five-for-four
stock split, effected in the form of a stock dividend declared on February
22, 1995.
5.The Company reports the results of its operations using a 52-53 week basis.
In line with this, reports for interim fiscal periods are prepared on the
basis of 12-12-12-16 week periods. The Company follows this policy
consistently.
6.A summary of inventories entering into cost of goods sold is:
<TABLE>
<CAPTION>
August 11, February 24, August 12, February 25,
1995 1995 1994 1994
------------ ------------ ------------ ------------
<S> <C> <C> <C> <C>
Hams in curing process $ 1,967,960 $ 1,748,375 $ 1,813,832 $ 1,729,997
Other food (includes cured hams) 1,467,272 2,104,940 2,482,142 1,357,837
Supplies 1,313,232 1,273,020 1,292,378 1,401,619
------------ ------------ ------------ ------------
Totals $ 4,748,464 $ 5,126,335 $ 5,588,352 $ 4,489,453
============ ============ ============ ============
</TABLE>
7.The Company has certain debt obligations that contain restrictive covenants
including a restriction on payment of cash dividends. The Company was either
in compliance with these covenants at August 11, 1995, or had obtained
necessary waivers for noncompliance. There are no consolidated retained
earnings available for payment of dividends.
8.The Company has guaranteed a loan obligation of one of its franchisees in an
amount not to exceed $322,000. The loan is secured by certain restaurant
equipment purchased by the franchisee.
Effective December 1, 1993, the Company entered into a three year endorsement
with Richard Childress Racing Enterprises, Inc. and Dale Earnhardt, Inc. The
agreement calls for total payments of $1,200,000 over the three year period.
As of August 11, 1995, remaining payments under this agreement are $612,500.
9. Supplemental cash flow disclosures - cash paid during the period for:
Six Months Ended
----------------------------
August 11, August 12,
1995 1994
------------ ------------
Interest $ 934,054 $ 927,420
============ ============
Income taxes $ 155,000 $ 175,500
============ ============
10. Stock options for 50,000 shares were exercised during the six month period
ended August 11, 1995 and resulted in cash proceeds totaling $145,000 during
the period.
ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS
OF OPERATIONS
The following table sets forth, for the periods indicated, percentages of
operating revenue represented by certain items reflected in the financial
statements:
<TABLE>
<CAPTION>
Relationship to Total Operating Revenue
-------------------------------------------------------
Three Months Ended Six Months Ended
------------------------ -------------------------
August 11, August 12, August 11, August 12,
1995 1994 1995 1994
---------- ---------- ---------- ----------
<S> <C> <C> <C> <C>
Food processing sales 62.5 65.1 61.4 64.0
Restaurant food sales 33.8% 31.5% 34.8% 32.7%
Franchise and royalty fees 3.7 3.4 3.8 3.3
---------- ---------- ---------- ----------
Total operating revenue 100.0 100.0 100.0 100.0
Cost of goods sold 70.5 69.8 69.1 69.3
Operating expenses 16.1 15.4 16.4 15.9
Selling, general and administrative expenses 10.3 8.9 10.2 9.1
Depreciation and amortization 3.3 3.0 3.3 3.2
---------- ---------- ---------- ----------
Total operating income (loss) (.2) 2.9 1.0 2.5
Other income (expenses) (3.2) (1.5) (2.7) (.3)
---------- ---------- ---------- ----------
Earnings (loss) before income taxes (3.4) 1.4 (1.7) 2.2
Provision for income taxes (benefit) (1.5) (.4) (.7) .9
---------- ---------- ---------- ----------
Net earnings (loss) (1.9%) 1.0% (1.0%) 1.3%
========== ========== ========== ==========
</TABLE>
The Company operates in three principal lines of business. Segment information
is presented as follows:
<TABLE>
<CAPTION>
Three Months Ended Six Months Ended
-------------------------------- --------------------------------
August 11, 1995 August 12, 1994 August 11, 1995 August 12, 1994
--------------- --------------- --------------- ---------------
<S> <C> <C> <C> <C>
Operating Revenues:
Food processing $ 11,967,121 $ 14,195,139 $ 23,001,356 $ 27,482,988
Restaurant operations 6,473,775 6,893,026 13,040,304 14,024,473
Restaurant franchising 716,910 732,961 1,428,679 1,413,449
------------- ------------- ------------- -------------
Total operating revenues $ 19,157,806 $ 21,821,126 $ 37,470,339 $ 42,920,910
============= ============= ============= =============
Operating Profits:
Food processing $ 210,191 $ 844,750 $ 598,608 $ 1,640,388
Restaurant operations 264,952 534,349 796,996 835,889
Restaurant franchising 521,588 380,644 977,209 759,541
------------- ------------- -------------- -------------
996,731 1,759,743 2,372,813 3,235,818
Corporate expenses (1,033,413) (1,130,082) (2,008,894) (2,177,259)
Other income (expense) (149,140) 119,508 (53,351) 776,076
Interest expense (455,772) (446,168) (941,061) (905,126)
------------- ------------- -------------- -------------
Earnings (loss) before
income taxes $ (641,594) $ 303,001 $ (630,493) $ 929,509
============= ============= ============== =============
</TABLE>
RESULTS OF OPERATIONS
- ---------------------
Second Quarter Ended August 11, 1995 Compared With Second Quarter Ended August
12, 1994
Consolidated food sales revenue decreased from $21,088,165 in the second
quarter of fiscal 1995 to $18,440,896 in the second quarter of fiscal 1996.
Approximately $2.2 million of the decrease occurred in the food processing
segment and reflects a $2.7 million decrease in sales in the bakery division
offset by a $500,000 increase in sales of the ham curing division. As
previously discussed in the first quarter, sales in the bakery division have
declined due to the largest customer of the bakery repositioning itself in
certain of its own markets in late fiscal 1995 and, as a result, discontinuing
a line of product previously purchased from the Company. Although the
customer has developed a well defined marketing program to replace this
volume, it now appears that the replacement of this volume will continue
into the fourth quarter of the current fiscal year. Additionally, the
restaurant segment accounted for approximately $419,000 of the decrease in
consolidated food sales. Approximately $161,000 of this decrease resulted
from the closing of a store during the third quarter of fiscal 1995. The
remaining decrease of $258,000 reflects a decrease in same store sales between
the quarters ended August 11, 1995 and August 12, 1994.
Franchise, royalty and other fees in the second quarter of fiscal 1996
remained consistent with the comparable quarter in fiscal 1995. Although nine
franchised Western Steer restaurants closed between August 12, 1994 and August
11, 1995, the impact was offset by the opening of two Bennett's Smokehouse
and Saloon franchises, two Prime Sirloin franchises, and one Western Steer
franchise during the same period.
The Company experienced an operating loss of $36,682 during the quarter ended
August 11, 1995, compared to operating income of $629,661 in the second
quarter of fiscal 1995. This decrease is the result of declines in operating
profits in the food processing and the restaurant operations segments, offset
by increased profitability in restaurant franchising and reductions in
corporate expenses. Total operating profit in the food processing segment
decreased $634,559 during the second quarter of fiscal 1996 compared to
the same period in fiscal 1995. Approximately $335,000 of the decrease
is due to the decline in sales in the bakery division. The remaining
decrease of $300,000 occurred in the ham curing division as a result
of overall decreases in margins. The restaurant segment also experienced a
decrease in operating profits from $534,349 for the quarter ended August 12,
1994 to $264,952 for the quarter ended August 11, 1995. This decline is
attributed primarily to the decrease in same store sales discussed above as
well as additional advertising costs of approximately $189,000 incurred during
the current quarter. Operating profits in the restaurant franchising segment
increased $140,944 due to improved management of operating costs as well as
improvements in collections of royalties.
Six Months Ended August 11, 1995 Compared With Six Months Ended August 12,
1994
Consolidated food sales revenue decreased $5.5 million, or 13.2%, to $36.0
million during the first six months of fiscal 1996, compared to the first six
months of fiscal 1995. The food processing segment showed a decrease of $4.5
million compared with the first half of fiscal 1995. This decrease is the
result of a decrease of approximately $5 million in the bakery division due to
the same factors discussed in the quarter comparison above. Offsetting the
decrease in sales from the bakery division was an increase of approximately
$500,000 in sales in the ham curing division. The remaining decrease in food
sales relates to the restaurant segment which experienced a decline in
revenues totaling $1.0 million. Approximately $598,000 of the decrease
resulted from the closing of four stores since the beginning of the prior
year. The remaining decrease of $402,000 is attributable to decreases in same
store sales.
Franchise, royalty and other fees for the first half of fiscal 1996 showed
little change from the corresponding period of fiscal 1995. As discussed in
the quarter comparison above, decreases in royalty and other fees brought
about by the closing of franchised restaurants have been offset by new
franchise restaurants opened during the same period.
Operating income decreased from $1,058,559 in the first half of fiscal 1995 to
$363,919 in the first half of fiscal 1996. This decrease is the result of a
decline in operating income in the food processing segment, offset by
increased profitability in the franchising segment and by reductions in
corporate costs. The food processing segment experienced a total decrease in
operating profit of $1 million during the six month period. Approximately
$610,000 of this decrease relates to the bakery division and corresponds with
a decline in food sales during the six months ended August 11, 1995 compared
to the corresponding period of the preceding year. The remaining decrease of
$390,000 occurred in the ham curing division as a result of lower margins.
Offsetting this decrease is an increase of $217,000 in operating income from
restaurant franchising, which is the result of the factors discussed above in
the quarter comparison.
LIQUIDITY AND CAPITAL RESOURCES
- --------------------------------
The Company had total working capital of $1,014,000 at August 11, 1995, up
slightly from $904,000 at February 24, 1995. Management anticipates an
increase in the amount of working capital generated by operations during the
coming two quarters as bakery sales continue to rebuild. In addition, the
sale of excess real estate is expected to generate approximately $3 million
during the third and fourth quarters.
Total cash and cash equivalents increased $583,000 during the six month period
ended August 11, 1995. Sales of excess assets generated $1.4 million of cash
proceeds during the period and contributed to this increase.
The Company is currently seeking to refinance amounts outstanding under its
Senior Notes and short-term secured note on an intermediate to long-term basis
through a private placement of debt. The Company has $10.6 million in Senior
Note obligations with two major life insurance companies. The agreements
provide for monthly interest payments and semi-annual principal payments of
$769,230 on October 1 and April 1. The Senior Notes mature on October 1, 1996
with a balloon payment of $9.1 million, and as such will become a current
liability on October 1, 1995. Management is using its best efforts to effect
a one year extension in the maturity of the Senior Notes. However, management
expects to accomplish the refinancing prior to the original October 1, 1996
maturity date.
PART II. OTHER INFORMATION
ITEM 4 - SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS
The annual meeting of Shareholders of WSMP, Inc. was held on June 22, 1995.
The two matters submitted to the vote of the shareholders were the election of
directors and a proposal to approve a renewal and extension of the Management
Services Agreement with HERTH Management, Inc.
The following directors were elected at the annual meeting:
Richard F. Howard E. Edwin Bradford
James M. Templeton
The following directors continued in office after this meeting:
James C. Richardson, Jr. William R. McDonald III
Bobby G. Holman Miles M. Aldridge
Richard F. Hendrickson Lewis C. Lanier
The Board of Directors, unanimously approved and voted to recommend to the
Shareholders the ratification of a renewal and extension of the Management
Services Agreement with HERTH Management, Inc. The Agreement was approved by
the Shareholders of WSMP, Inc. at this annual meeting.
ITEM 6 - EXHIBITS AND REPORTS ON FORM 8 - K
(a) Exhibits
See Index to Exhibits
(b) Reports on Form 8-K
No reports on Form 8-K were filed during the quarter ended August 11, 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.
WSMP, INC.
Date: 9/21/95 By: James C. Richardson, Jr.
---------- --------------------------------------------
James C. Richardson, Jr.
(President and Chief Executive Officer)
Date: 9/21/95 By: Matthew V. Hollifield
---------- --------------------------------------------
Matthew V. Hollifield
(Vice President of Accounting and
Chief Accounting Officer)
INDEX TO EXHIBITS
For inclusion in Quarterly Report on Form 10-Q Quarter Ended August 11, 1995
Exhibit No. Page No.
- ----------- ----------
11 Computation of Earnings (Loss) Per Common and
Common Equivalent Share 14
Exhibit 11
-----------
WSMP, INC. AND SUBSIDIARIES
----------------------------------------------------
<TABLE>
Computation of Earnings (Loss) Per Common and Common Equivalent Share
<CAPTION>
Three Months Ended Six Months Ended
----------------------------- ---------------------------
August 11, August 12, August 11, August 12,
1995 1994 1995 1994
---------- ----------- ---------- -----------
<S> <C> <C> <C> <C>
Earnings (loss) computations:
Net earnings (loss) $ (363,888) $ 206,000 $ (356,229) $ 567,000
============ ============ =========== ===========
Weighted average shares computation:
Actual outstanding shares at
beginning of period 2,710,338 2,666,861 2,660,338 2,666,861
Add (deduct) weighted average
shares applicable to:
Common stock issued 38,876
Common stock options
outstanding 162,598 167,774
------------ ------------ ----------- -----------
Weighted average shares as
adjusted 2,710,338 2,829,459 2,699,214 2,834,635
============ ============ =========== ===========
Earnings (loss) per common and
common equivalent share $(.13) $ .07 $ (.13) $ .20
============ =========== =========== ===========
</TABLE>
<TABLE> <S> <C>
<ARTICLE> 5
<LEGEND>
This schedule contains summary financial information extracted from the 1995 2nd
quarter 10-Q for WSMP, Inc. and is qualified in its entirety by reference to
such 10-Q.
</LEGEND>
<S> <C>
<PERIOD-TYPE> 6-MOS
<FISCAL-YEAR-END> FEB-23-1996
<PERIOD-START> FEB-25-1995
<PERIOD-END> AUG-11-1995
<CASH> 1,522,949
<SECURITIES> 136,535
<RECEIVABLES> 3,345,179
<ALLOWANCES> 15,000
<INVENTORY> 4,748,464
<CURRENT-ASSETS> 12,850,899
<PP&E> 45,437,553
<DEPRECIATION> 19,890,228
<TOTAL-ASSETS> 44,932,917
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0
0
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<INCOME-TAX> (274,264)
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<NET-INCOME> (356,229)
<EPS-PRIMARY> (.13)
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</TABLE>
