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UNITED STATES SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 10-K
[X] ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES
EXCHANGE ACT OF 1934
FOR THE FISCAL YEAR ENDED APRIL 29, 2000
[ ] 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 1-14170
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NATIONAL BEVERAGE CORP.
(Exact name of registrant as specified in its charter)
DELAWARE 59-2605822
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(State or other jurisdiction of (I.R.S. Employer
incorporation or organization) Identification No.)
ONE NORTH UNIVERSITY DRIVE, FT. LAUDERDALE, FL 33324
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(Address of principal executive offices) (Zip Code)
(954) 581-0922
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(Registrant's telephone number, including area code)
Securities registered pursuant to Section 12(b) of the Act:
<TABLE>
<CAPTION>
TITLE OF EACH CLASS NAME OF EACH EXCHANGE ON WHICH REGISTERED
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<S> <C>
Common Stock, par value $.01 per share American Stock Exchange
</TABLE>
Securities registered pursuant to Section 12(g) of the Act: None
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 by check mark if disclosure of delinquent filers pursuant to Item 405
of Regulation S-K is not contained herein, and will not be contained, to the
best of Registrant's knowledge, in definitive proxy or information statements
incorporated by reference in Part III of this Form 10-K or any amendment to this
Form 10-K.(X)
The aggregate market value of the voting stock held by non-affiliates of
Registrant computed by reference to the closing sale price on July 20, 2000 was
approximately $30,242,000.
The number of shares of Registrant's common stock outstanding as of July 20,
2000 was 18,180,938.
DOCUMENTS INCORPORATED BY REFERENCE
Portions of the Registrant's Proxy Statement for the Annual Meeting of
Shareholders to be filed on or before August 28, 2000 are incorporated by
reference into Part III of this report.
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PART I
ITEM 1. BUSINESS
GENERAL
National Beverage Corp. (the "Company") is a holding company for various
subsidiaries that develop, manufacture, market and distribute a complete
portfolio of quality beverage products throughout the United States. The
Company's proprietary brands include Shasta(R), Faygo(R), and Big Shot(R),
complete lines of multi-flavored and cola soft drinks. In addition, the Company
offers an assortment of premium "good-for-you" beverages geared toward the
health-conscious consumer, including Everfresh(R), Home Juice(R), and Mr.
Pure(R) 100% juice and juice-based products; and LaCROIX(R), Mt. Shasta(TM) and
ClearFruit(R) flavored and spring water products. The Company also provides
specialty products, including VooDoo Rain(TM), a line of alternative beverages
geared toward young consumers, and St. Nick's(TM) holiday soft drinks.
Substantially all of the Company's brands are produced in its fifteen
manufacturing facilities, which are strategically located throughout the
continental United States. The Company also develops and produces soft drinks
for retail grocery chains, warehouse clubs, mass-merchandisers and wholesalers
("allied brands") as well as soft drinks for other beverage companies.
The Company's strategy emphasizes the growth of its branded products by offering
a beverage portfolio of proprietary flavors; by supporting the franchise value
of regional brands; by developing and acquiring innovative products tailored
toward healthy lifestyles; and by appealing to the "quality-price" sensitivity
factor of the family consumer. In addition, the strength of its brands and
location of its manufacturing facilities distinguish the Company as a
single-source supplier of branded and allied branded beverages for national and
regional retailers that rely on the warehouse distribution system.
Various means are utilized by the Company to maintain its position as a
cost-effective producer of beverage products. These include vertical integration
of the supply of raw materials for the manufacturing process, bulk delivery to
customer distribution centers, regionally targeted media promotions and the use
of multiple distribution systems. Management believes it is able to offer
retailers a higher profit margin on Company branded products and allied brands
than is typically available from those soft drink companies that utilize the
direct-store delivery method.
PRODUCTS
Shasta and Faygo, the Company's traditional soft drink brands, have been
manufactured and marketed throughout the United States for a combined period of
over 200 years. Established over 100 years ago and distributed nationally,
Shasta is the largest of the Company's brands and includes approximately 60
flavors as well as bottled spring water. Established over 90 years ago, Faygo
products are primarily distributed east of the Mississippi River and include
over 45 flavors. National Beverage Corp. also produces and markets Ohana, a line
of fruit flavored, non-carbonated beverages and Big Shot, a regional
multi-flavored soft drink line established in 1935. The Company's premium and
alternative beverage lines include Everfresh, Home Juice and Mr. Pure 100% juice
and juice-based products; ClearFruit all natural, non-carbonated water with
fresh fruit flavors; LaCROIX and Mt. Shasta sparkling and still water products;
and VooDoo Rain non-carbonated beverages.
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During the fiscal year ended April 29, 2000 ("fiscal 2000"), the Company's
portfolio of brands was expanded by the purchase of Home Juice, a Chicago-based
producer and distributor of Mr. Pure(R) and Home Juice(R) 100% juice and
juice-based beverages. Established in 1946, Home Juice products are sold through
a wide base of independent distributors located throughout the United States and
through company-owned direct-store distribution systems in the midwestern and
southern United States.
Although cola drinks account for approximately 55% of the soft drink industry's
domestic grocery channel volume, the Company's "fantasy of flavors" strategy
emphasizes its non-cola products. As a result, colas account for less than 20%
of the Company's total volume. In recent years, the volume of the "flavor
segment" of the soft drink market has grown more than three times faster than
cola volume. Management believes the Company's success in the carbonated
soft-drink flavor category is due to the long established brand awareness of
Shasta and Faygo along with its continued "flavor-enhancement" philosophy.
During fiscal 2000, the Company added 13 new and unique flavors, including
several additions to its ClearFruit, VooDoo Rain and "exotic flavors of Shasta"
lines.
MANUFACTURING
The Company's fifteen bottling plants are strategically located across the
continental United States, enabling the Company to efficiently manufacture and
distribute beverages to most geographic markets. Each plant is generally
equipped to produce both canned and bottled beverage products in a variety of
package sizes in each regional market. The Company utilizes a variety of package
sizes, including 8-ounce cans; 6-pack, 12-pack, and 18-pack twelve-ounce cans;
one, two and three liter "family size" bottles; and 10-ounce, 16-ounce, 20-ounce
and 32-ounce bottles targeted to single-serve markets.
Management believes that ownership of its bottling facilities provides an
advantage over certain of its competitors that rely upon independent third party
bottlers to manufacture and market their products. Since the Company controls
the national manufacture, distribution and marketing of its brands, it can more
effectively manage product quality and customer service and respond quickly to
changing market conditions. From time to time, the Company will shift
manufacturing equipment among its facilities to increase cost efficiencies or
maximize the utilization of equipment.
The Company produces a majority of the flavor concentrates used in its branded
products. Utilizing the same formulas throughout its bottling network, the
Company is able to manufacture its products in accordance with uniform standards
and specifications. The Company also maintains research and development
laboratories at multiple locations. These laboratories continually test products
for compliance with the Company's strict quality control standards as well as
conduct research for new products and flavors.
DISTRIBUTION
The Company utilizes multiple distribution systems to deliver its products
through four primary distribution channels consisting of take-home, convenience,
food service and vending.
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The take-home distribution channel consists of grocery stores, warehouse clubs,
mass-merchandisers, wholesalers and discount stores. The Company distributes its
products to this channel through both the warehouse distribution system and the
direct-store delivery system. Under the warehouse distribution system, products
are shipped from the Company's manufacturing facilities to the retailer's
centralized distribution centers and then shipped by the retailer to each of its
outlet locations with other goods. Products shipped under the direct-store
delivery system are distributed directly to the customer's retail outlets
through the Company's direct-store delivery fleet and through independent
distributors.
The Company distributes its products to the convenience store and retail gas
station market through its own direct-store delivery fleet and that of
independent distributors. Because of the higher retail prices and margins that
typically prevail, the Company has undertaken several measures to expand its
convenience channel distribution in recent years. These include development of
products specifically targeted to single-serve markets, such as VooDoo Rain and
ClearFruit, and the acquisition of the Everfresh, Home Juice and Mr. Pure juice
lines. The Company increased distribution through this channel during fiscal
2000, and intends to continue emphasizing growth within this channel during
fiscal 2001.
The Company's food service division is responsible for sales to hospitals,
schools, military bases, airlines, hotels and food service wholesalers. The
Company's food service products are distributed primarily through independent,
specialized distributors. Additionally, schools and certain other institutions
are serviced through company-owned direct-store distribution systems.
Each of the Company's take-home, convenience and food service operations use
vending machines and glass-door coolers as marketing and promotional tools for
the Company's brands. The Company provides vending machines and coolers on a
placement or purchase basis to its customers and vending operators. Management
believes that the vending market provides not only increased beverage sales, but
also the enhancement of brand awareness and the development of brand loyalty.
SALES AND MARKETING
The Company sells and markets its products through an internal sales force, as
well as selected broker networks. The Company's sales force is organized to
serve a specific market segment, focusing either on geographic territories,
distribution channels or product line segments. This focus allows each sales
group to provide high level, responsive service and support to the customers and
markets that it serves.
The Company's sales and marketing programs are directed toward maintaining and
enhancing consumer brand recognition and loyalty, and typically utilize a
combination of regional advertising, special event marketing, diversified
packaging and consumer coupon distribution. The Company retains advertising
agencies to assist with media advertising programs for its brands. The Company
also offers numerous promotional programs to its retail customers, including
cooperative advertising support, in-store advertising materials and other
incentives. Management believes these elements allow it to tailor marketing and
advertising programs to meet local and regional economic conditions and
demographics. The Company seeks to maintain points of difference between its
brands and those of its competitors by combining high product quality, flavor
innovation and unique packaging designs with a value pricing strategy.
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Additionally, the Company sponsors special holiday promotions including St
Nick's, which features special holiday flavors and colors for Christmas.
The Company's "regional share dynamics" strategy emphasizes the acquisition and
support of brands that have a significant regional presence. Management believes
that these types of products are less subject to attack by the larger national
brands because of the strong, regional consumer loyalty developed over time and
because of their relatively small national market share. Additionally, brands
that have regional consumer recognition do not require costly national media
advertising and are effectively promoted by the Company's regionally targeted
marketing programs and retailer-based sales incentives.
As part of its sales and marketing strategy, the Company enters into long-term
contractual relationships which join its sales, marketing and manufacturing
expertise with the sales and marketing expertise of national and regional
retailers. These "Strategic Alliances" provide for retailer promotional support
for the Company's brands through in-store and point-of-sale advertising, and
provide nationally integrated manufacturing and distribution services for the
retailer's own branded products. See Item 7.
Management believes that the Company's structure and marketing strategies,
unlike that of its national competitors, permit efficient regional manufacturing
and distribution of beverages targeted to specific demographics and consumer
preferences.
RAW MATERIALS
The Company's centralized procurement division maintains relationships with
numerous suppliers of raw materials and packaging goods. By consolidating the
purchasing function for its fifteen bottling facilities, management believes it
is able to procure more competitive arrangements with its suppliers, allowing it
to compete as a low-cost producer of beverages.
Products produced and sold by the Company are made from various materials,
including sweeteners, juice concentrates, carbon dioxide, water, glass, resin
used in plastic bottles, aluminum, paper, cartons and caps. Most of the
Company's low-calorie soft drink products use aspartame. The Company
manufactures a majority of its own flavor concentrates and purchases the
remainder of its raw materials from multiple suppliers. In the ordinary course
of its business, the Company enters into commitments for the supply of certain
raw materials, none of which are material to the Company's financial position.
All of the materials or ingredients used by the Company are presently available,
although strikes, weather conditions, governmental control or regulations,
national emergencies or other events outside the Company's control could
adversely affect the supply of specific materials. Additionally, pricing and
availability of certain of the Company's raw materials are based on commodities,
primarily aluminum, corn and juice concentrates, which tend to fluctuate based
upon worldwide market conditions. See Item 7A.
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SEASONALITY
The Company's sales are seasonal with the highest volume typically realized
during the summer months. The Company has sufficient production capacity to meet
seasonal increases without maintaining significant quantities of inventory in
anticipation of periods of peak demand. The volume of sales may be affected by
weather conditions.
COMPETITION
The production and sale of non-alcoholic beverages is highly competitive and the
Company's competitive position varies in each of its market areas. Competition
by national brand soft drink companies as well as other regional soft drink
producers can be intense, particularly with regard to price and price
promotions. The Company is not considered dominant in any market. Products
produced and marketed by the Company compete with national brands delivered
directly to retail customers by franchised bottlers, as well as local and
regional products. Several competitors, including the two that dominate the soft
drink industry, PepsiCo, Inc. and The Coca-Cola Company, have greater financial
resources than the Company. Competition is based upon taste, quality, price,
availability, promotion, packaging, advertising and service to the customer.
TRADEMARKS
The Company maintains various registered trademarks for its proprietary brands
in the United States and abroad, which are significant to the business of the
Company. The Company intends to continue to maintain all registrations of its
significant trademarks and use the trademarks in the operation of its
businesses.
GOVERNMENTAL REGULATION
The production, distribution and sale of the Company's products in the United
States are subject to the Federal Food, Drug and Cosmetic Act; the Occupational
Safety and Health Act; the Lanham Act; various environmental statutes; and
various other federal, state and local statutes regulating the production,
transportation, sale, safety, advertising, labeling and ingredients of such
products. Certain states and localities prohibit, or may in the future enact
legislation to prohibit, the sale of certain beverages unless a deposit or tax
is charged for containers. Management believes that it is in compliance in all
material respects with such existing legislation.
All of the Company's facilities in the United States are subject to federal,
state and local environmental laws and regulations. Compliance with these
provisions has not had, and the Company does not expect such compliance to have,
any material adverse effect on the Company's financial or competitive position.
EMPLOYEES
As of April 29, 2000, the Company employed approximately 1,500 people, of which
approximately 300 are covered by collective bargaining agreements. Management
believes that the Company's relations with its employees are good.
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ITEM 2. PROPERTIES
The principal properties of the Company include fifteen production facilities
located in thirteen states which, in the aggregate, comprise approximately two
million square feet. Twelve facilities are owned by the Company and are located
in the following states: Arizona, California (2), Georgia, Illinois, Kansas,
Michigan (2), Ohio, Texas, Utah and Washington. Three production facilities,
located in Louisiana, Maryland and Florida, are leased subject to agreements
that expire through 2002. Management believes the Company's facilities are
generally in good condition and sufficient to meet its present needs.
The production of carbonated and non-carbonated beverages is capital intensive
but is not characterized by rapid technological change. The technological
advances that have occurred have generally been of an incremental cost-saving
nature, such as the industry's conversion to lower-weight cans and lids. The
Company is not aware of any anticipated industry-wide changes in technology that
would adversely impact the Company's current physical production capacity or
cost of production.
The Company owns and leases delivery trucks, other trucks, vans and automobiles
used in the sale and distribution of its products. In addition, the Company
leases office space, transportation equipment, office equipment, data processing
equipment and some plant equipment.
ITEM 3. LEGAL PROCEEDINGS
From time to time, the Company is a party to various litigation matters arising
in the ordinary course of business. In the opinion of management, the ultimate
disposition of such matters will not have a material adverse effect on the
Company's consolidated financial position or results of operations.
ITEM 4. SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS
No matters were voted upon during the fourth quarter of fiscal 2000.
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PART II
ITEM 5. MARKET FOR REGISTRANT'S COMMON EQUITY AND RELATED STOCKHOLDER MATTERS
MARKET INFORMATION
The common stock of the Company, par value $.01 per share, is listed and traded
on the American Stock Exchange under the symbol "FIZ".
The table below sets forth, for the periods indicated, the high and low prices
of the common stock as reported by the American Stock Exchange:
Fiscal 2000 Fiscal 1999
High Low High Low
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First Quarter $9 3/4 $8 1/4 $12 1/16 $9 7/8
Second Quarter 9 3/8 7 3/4 10 3/4 9 3/4
Third Quarter 8 3/8 7 3/8 10 1/2 8 3/4
Fourth Quarter 8 1/16 7 7/8 9 7 3/8
HOLDERS
At July 20, 2000, there were 1,018 stockholders of record of the Company's
common stock. This number was determined from records maintained by the
Company's transfer agent and does not include beneficial owners of the Company's
securities whose securities are held in the names of various dealers and/or
clearing agencies.
DIVIDENDS
The Company has not paid any cash dividends with respect to its common stock
during the last three fiscal years and the Company's Board of Directors has no
present plans for declaring any such cash dividends. See Note 5 of Notes to
Consolidated Financial Statements for certain restrictions on the payment of
dividends.
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ITEM 6. SELECTED FINANCIAL DATA
NATIONAL BEVERAGE CORP. AND SUBSIDIARIES
(In thousands, except per share amounts)
<TABLE>
<CAPTION>
Fiscal Year Ended (1):
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April 29, May 1, May 2, May 3, April 27,
2000 1999 1998 1997 1996
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<S> <C> <C> <C> <C> <C>
STATEMENT OF INCOME DATA:
Net sales $426,269 $402,108 $400,749 $385,427 $350,431
Cost of sales 286,245 268,844 275,083 275,453 261,859
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Gross profit 140,024 133,264 125,666 109,974 88,572
Selling, general and administrative
expenses 120,104 110,246 102,195 88,921 70,029
Interest expense 2,789 3,304 4,175 4,951 4,969
Other income - net 4,754 1,323 1,633 871 950
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Income before income taxes 21,885 21,037 20,929 16,973 14,524
Provision for income taxes 8,302 7,868 7,827 6,280 5,520
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Net income $ 13,583 $ 13,169 $ 13,102 $ 10,693 $ 9,004
======== ======== ======== ======== ========
Net income per share (2):
Basic $ .74 $ .71 $ .71 $ .58 $ .44
Diluted .71 .68 .68 .56 .43
BALANCE SHEET DATA:
Working capital $ 54,907 $ 57,504 $ 50,398 $ 47,624 $ 43,580
Property - net 62,430 56,103 55,945 55,436 56,226
Total assets 197,754 180,404 182,327 170,897 177,560
Long-term debt 33,933 40,267 41,600 55,026 62,568
Deferred income taxes 8,011 8,344 8,332 7,245 6,805
Shareholders' equity 93,686 82,005 69,980 56,703 47,052
</TABLE>
(1) Fiscal 1997 consisted of 53 weeks.
(2) Basic net income per share is computed by dividing earnings applicable
to common shares by the weighted average number of shares outstanding.
Diluted net income per share includes the dilutive effect of stock
options. For fiscal 1996, earnings applicable to common shares is
comprised of net income less preferred dividends. Per share amounts are
adjusted for the 2 for 1 stock split distributed on October 25, 1996.
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ITEM 7. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS
OF OPERATIONS
GENERAL OVERVIEW
National Beverage Corp. manufactures and markets a wide variety of quality
beverages in multiple flavors and package sizes. The Company's strategy includes
supporting the franchise value of regional brands; developing and acquiring
innovative products tailored toward healthy lifestyles; and appealing to the
"quality-price" sensitivity factor of the family consumer. The Company utilizes
multiple distribution systems to deliver its products through four primary
distribution channels consisting of take-home, convenience, food service and
vending.
During the past two years, the Company has focused on expanding its beverage
portfolio to juice and water products having a strong distribution presence in
the convenience channel. The acquisition of Everfresh, LaCROIX, Home Juice and
Mr. Pure brands, together with the internal development of VooDoo Rain and
ClearFruit, has diversified the Company's beverage portfolio and strengthened
its position in the higher-margin convenience channel of distribution. The
Company utilizes a wide base of independent distributors and established
company-owned, direct-store delivery systems to provide service to convenience
stores and other retailers.
The Company continues to strengthen its brand equity within the take-home
channel through greater retailer sponsorship attained through long-term
contractual alliances with national and regional retailers ("Strategic
Alliances"). The continued consolidation of smaller retail outlets into larger
and highly price-sensitive businesses has increased the retailers' need for a
single-source, high-quality, service-oriented manufacturer of beverage products.
Through its Strategic Alliances, the Company has joined with these retailers to
manufacture, market and sell its brands as well as brands developed specifically
for the retailer ("allied brands"). Retailers are able to realize better
inventory management, enhanced quality control and reduced freight costs by
contracting with one national supplier that can provide consistent quality,
flavor and packaging throughout the continental United States. Accordingly,
management believes that the strength of its regional brands and the location of
its manufacturing facilities position the Company as one of the leading
single-source suppliers of high-quality, high-value beverages, such as Shasta,
Faygo, Everfresh and LaCROIX, as well as allied branded soft drinks that are
distributed through the warehouse.
Beverage industry sales are seasonal with the highest volume typically realized
during the summer months. Additionally, the Company's operating results are
subject to numerous factors, including fluctuations in the costs of raw
materials, changes in consumer preference for beverage products and competitive
pricing in the marketplace. Management believes that brand recognition, quality,
customer service, availability and value are primary factors affecting the
Company's position in the marketplace.
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RESULTS OF OPERATIONS
Net Sales:
Net sales for fiscal 2000 increased approximately $24.2 million, or 6%, over the
prior year. This improvement was primarily attributed to an increase in case
volume of the Company's proprietary brands and revenues from the May 1999
acquisition of Home Juice. These increases are net of volume declines in
lower-margin allied branded products.
Net sales for fiscal 1999 increased $1.4 million to $402.1 million from $400.7
million for fiscal 1998. This improvement was due to an increase in case volume
and net selling prices for the Company's brands resulting from the introduction
of additional premium beverage products, expanded distribution in the
convenience channel and continued growth of Strategic Alliances. This
improvement was partially offset by a decline in volume of lower-margin
carbonated beverages.
Gross Profit:
Gross profit approximated 32.8% of net sales for fiscal 2000 and 33.1% of net
sales for fiscal 1999. This decline was the result of increases in certain raw
material costs and higher production costs related to Home Juice, partially
offset by favorable changes in product and package mix.
Gross profit improved $7.6 million to $133.3 million in fiscal 1999. This
improvement was principally due to favorable changes in product and distribution
mix, the increase in selling prices noted above, and the effects of lower raw
materials costs.
Selling, General and Administrative Expenses:
Selling, general and administrative expenses increased to $120.1 million or
28.2% of net sales for fiscal 2000. This increase was primarily due to expenses
related to Home Juice and higher selling and startup distribution costs
resulting from expanded distribution in the convenience channel, which should
reflect a net positive return in future periods.
Selling, general and administrative expenses increased to $110.2 million or
27.4% of net sales for fiscal 1999. This increase is due to higher delivery
costs associated with convenience channel growth and higher marketing costs,
including expanded in-store advertising and other merchandising programs related
to the Strategic Alliance initiative and the introduction of certain premium
beverage products.
Interest Expense and Other Income-Net:
Fiscal 2000 and 1999 interest expense decreased $.5 million and $.9 million,
respectively, due to a reduction in average outstanding debt. Other income
includes interest income of $1.4 million for fiscal 2000 and 1999, and $1.7
million for fiscal 1998. In addition, other income for fiscal 2000 includes a
gain of $3.4 million from the sale of a residual interest in an operating lease.
Income Taxes:
The Company's effective tax rate was approximately 37.9% for fiscal 2000 and
37.4% for fiscal 1999 and 1998. The difference between the effective rate and
the federal statutory rate of 35% was primarily due to the effects of state
income taxes and other nondeductible expenses. See Note 7 of Notes to
Consolidated Financial Statements.
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LIQUIDITY AND CAPITAL RESOURCES
Management views earnings before interest expense, taxes, depreciation and
amortization ("EBITDA") as a key indicator of the Company's operating
performance and enterprise value, although not as a substitute for cash flow
from operations or operating income. The Company generated EBITDA of $34.8
million for fiscal 2000 and $34.3 million for fiscal 1999. Management believes
that EBITDA is sufficient to support additional growth and debt capacity.
Cash and equivalents aggregated $38.5 million at April 29, 2000 and $37.5
million at May 1, 1999. Cash provided by operations of $19.6 million was
comprised of net income of $13.6 million and non-cash charges of $7.4 million
less working capital requirements of $1.4 million. Cash of $10.3 million was
used for investing activities, primarily for capital expenditures and the
acquisition of Home Juice. Cash of $8.4 million was used for financing
activities, principally for net debt repayments and purchase of common stock.
The Company's ratio of current assets to current liabilities approximated 1.9 to
1 and 2.2 to 1 at April 29, 2000 and May 1, 1999, respectively, and working
capital decreased to $54.9 million from $57.5 million for those same periods.
The Company continually evaluates capital projects designed to expand capacity
and improve efficiency at its manufacturing facilities. The Company presently
has no material commitments for capital expenditures and expects that fiscal
2001 capital expenditures will be comparable to fiscal 2000.
At April 29, 2000, the Company had long-term debt outstanding of $33.9 million.
Certain debt agreements contain restrictions which require subsidiaries to
maintain certain financial ratios and minimum net worth, and limit the
subsidiaries with respect to incurring additional indebtedness, paying cash
dividends and making certain loans, advances or other investments. At April 29,
2000, net assets of subsidiaries totaling approximately $63 million were
restricted from distribution. Management believes that cash and equivalents,
together with funds generated from operations and borrowing capabilities will be
sufficient to meet the Company's operating cash requirements, and the cash
requirements of the parent company, for the foreseeable future. The Company was
in compliance with all loan covenants and restrictions at April 29, 2000 and
such restrictions are not expected to have a material adverse impact on the
operations of the Company. See Note 5 of Notes to Consolidated Financial
Statements.
In January 1998, the Board of Directors authorized the Company to repurchase up
to 800,000 shares of its common stock. In fiscal 2000 and 1999, the Company
purchased 265,980 shares and 142,330 shares, respectively, of common stock on
the open market.
Pursuant to a management agreement, the Company incurred a fee to Corporate
Management Advisors, Inc. ("CMA") of approximately $4.3 million for fiscal 2000
and $4.0 million for fiscal 1999 and 1998. At April 29, 2000, the Company owed
$879,000 to CMA for unpaid fees. See Note 6 of Notes to Consolidated Financial
Statements.
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CHANGES IN ACCOUNTING STANDARDS
In June 1998, the Financial Accounting Standards Board issued Statement of
Financial Accounting Standards No. 133, "Accounting for Derivative Instruments
and Hedging Activities" ("SFAS 133"). This statement modifies the method of
accounting for derivatives by requiring that all derivatives be recorded at fair
market values in the balance sheet. SFAS 133, as amended by SFAS 137, is
effective for fiscal years beginning after June 15, 2000. The Company believes
that the implementation of SFAS 133 will not materially affect its operating
results or financial position.
YEAR 2000 COMPLIANCE
The Company experienced no significant difficulties or business disruptions
related to the Year 2000 date change. In addition, the Company is not aware of
any Year 2000 difficulties or business disruptions experienced by its
significant service providers, suppliers, or customers. The Company will
continue to monitor its critical systems to ensure that any latent Year 2000
problems that may arise are addressed promptly. There were no material costs
incurred on Year 2000 compliance.
FORWARD LOOKING STATEMENTS
The Company and its representatives may from time to time make written or oral
statements that are "forward-looking" within the meaning of the Private
Securities Litigation Reform Act of 1995, including statements contained in this
report and other filings with the Securities and Exchange Commission and in
reports to the Company's stockholders. Certain statements, including, without
limitation, statements containing the words "believes," "anticipates,"
"intends," "expects," and "estimates" constitute "forward-looking statements"
and involve known and unknown risk, uncertainties and other factors that may
cause the actual results, performance or achievements of the Company to be
materially different from any future results, performance or achievements
expressed or implied by such forward-looking statements. Such factors include,
but are not limited to, the following: general economic and business conditions;
pricing of competitive products; success of the Company's Strategic Alliance
objective; success of the Company in acquiring other beverage businesses;
success of new product and flavor introductions; fluctuations in the costs of
raw materials; the Company's ability to increase prices; continued retailer
support for the Company's brands; changes in consumer preferences; changes in
business strategy or development plans; government regulations; regional weather
conditions; and other factors referenced in this Form 10-K. The Company
disclaims an obligation to update any such factors or to publicly announce the
results of any revisions to any forward-looking statements contained herein to
reflect future events or developments.
12
<PAGE> 14
ITEM 7A. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK
The principal market risks to which the Company is exposed are commodity prices
and interest rates.
Commodities
The Company purchases various raw materials that fluctuate based on commodity
market conditions. These include aluminum cans, high fructose corn syrup, and
various juice concentrates. The Company's ability to recover increased costs
through higher pricing may be limited by the competitive environment in which it
operates.
Interest Rates
At the end of fiscal 2000, the Company had approximately $8.3 million of fixed
rate term debt and $20.6 million of floating rate term debt outstanding. In
addition, the Company has floating rate revolving credit agreements aggregating
$48 million, of which $5 million was outstanding at April 29, 2000. If the
interest rate changed by 100 basis points (1%), interest expense for fiscal 2000
would have changed by approximately $200,000. Because of its limited exposure to
interest rate movements, the Company does not currently utilize interest rate
swaps or other interest rate hedging products.
The Company's investment portfolio consists primarily of short-term money market
instruments, the yields of which fluctuate based largely on short-term Treasury
rates. If the yield of these instruments had changed by 100 basis points (1%),
interest income for fiscal 2000 would have changed by approximately $250,000.
13
<PAGE> 15
ITEM 8. FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA
NATIONAL BEVERAGE CORP. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
AS OF APRIL 29, 2000 AND MAY 1, 1999
(In thousands, except share amounts)
-------------------------------------------------------------------------------
<TABLE>
<CAPTION>
2000 1999
--------- ---------
<S> <C> <C>
ASSETS
Current assets:
Cash and equivalents $ 38,482 $ 37,480
Trade receivables - net of allowances of $534 (2000) and $671 (1999) 39,116 34,595
Inventories 29,056 25,207
Deferred income taxes 1,465 1,985
Prepaid and other 5,554 4,878
--------- ---------
Total current assets 113,673 104,145
Property - net 62,430 56,103
Intangible assets - net 15,754 14,475
Other assets 5,897 5,681
--------- ---------
$ 197,754 $ 180,404
========= =========
LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities:
Accounts payable $ 37,199 $ 30,226
Accrued liabilities 19,646 14,994
Income taxes payable 1,921 1,421
--------- ---------
Total current liabilities 58,766 46,641
Long-term debt 33,933 40,267
Deferred income taxes 8,011 8,344
Other liabilities 3,358 3,147
Commitments and contingencies
Shareholders' equity:
Preferred stock, 7% cumulative, $1 par value, aggregate liquidation
preference of $15,000 - 1,000,000 shares authorized; 150,000
shares issued; no shares outstanding 150 150
Common stock, $.01 par value - authorized 50,000,000 shares;
issued 22,117,332 shares (2000) and 22,062,012 shares (1999);
outstanding 18,178,298 shares (2000) and 18,388,958 shares (1999) 221 221
Additional paid-in capital 15,556 15,304
Retained earnings 94,725 81,142
Treasury stock - at cost:
Preferred stock - 150,000 shares (5,100) (5,100)
Common stock - 3,939,034 shares (2000) and 3,673,054 shares (1999) (11,866) (9,712)
--------- ---------
Total shareholders' equity 93,686 82,005
--------- ---------
$ 197,754 $ 180,404
========= =========
</TABLE>
See accompanying Notes to Consolidated Financial Statements.
14
<PAGE> 16
NATIONAL BEVERAGE CORP. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF INCOME
FOR THE FISCAL YEARS ENDED APRIL 29, 2000, MAY 1, 1999 AND MAY 2, 1998
(In thousands, except per share amounts)
-------------------------------------------------------------------------------
<TABLE>
<CAPTION>
2000 1999 1998
-------- -------- --------
<S> <C> <C> <C>
Net sales $426,269 $402,108 $400,749
Cost of sales 286,245 268,844 275,083
-------- -------- --------
Gross profit 140,024 133,264 125,666
Selling, general and administrative expenses 120,104 110,246 102,195
Interest expense 2,789 3,304 4,175
Other income - net 4,754 1,323 1,633
-------- -------- --------
Income before income taxes 21,885 21,037 20,929
Provision for income taxes 8,302 7,868 7,827
-------- -------- --------
Net income $ 13,583 $ 13,169 $ 13,102
======== ======== ========
Net income per share -
Basic $ .74 $ .71 $ .71
======== ======== ========
Diluted $ .71 $ .68 $ .68
======== ======== ========
Average common shares outstanding -
Basic 18,321 18,474 18,477
======== ======== ========
Diluted 19,018 19,278 19,323
======== ======== ========
</TABLE>
See accompanying Notes to Consolidated Financial Statements.
15
<PAGE> 17
NATIONAL BEVERAGE CORP. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF SHAREHOLDERS' EQUITY
FOR THE FISCAL YEARS ENDED APRIL 29, 2000, MAY 1, 1999 AND MAY 2, 1998
(In thousands, except share amounts)
-------------------------------------------------------------------------------
<TABLE>
<CAPTION>
2000 1999 1998
------------------------- -------------------------- --------------------------
Shares Amount Shares Amount Shares Amount
------ ------ ------ ------ ------ ------
<S> <C> <C> <C> <C> <C> <C>
PREFERRED STOCK
Beginning and end of year 150,000 $ 150 150,000 $ 150 150,000 $ 150
=========== ----------- =========== ----------- =========== -----------
COMMON STOCK
Beginning of year 22,062,012 221 22,025,212 220 21,990,492 220
Stock options exercised 55,320 -- 36,800 1 34,720 --
----------- ----------- ----------- ----------- ----------- -----------
End of year 22,117,332 221 22,062,012 221 22,025,212 220
=========== ----------- =========== ----------- =========== -----------
ADDITIONAL PAID-IN CAPITAL
Beginning of year 15,304 15,118 14,943
Stock options exercised 252 186 175
----------- ----------- -----------
End of year 15,556 15,304 15,118
----------- ----------- -----------
RETAINED EARNINGS
Beginning of year 81,142 67,973 54,871
Net income 13,583 13,169 13,102
----------- ----------- -----------
End of year 94,725 81,142 67,973
----------- ----------- -----------
TREASURY STOCK-PREFERRED
Beginning and end of year 150,000 (5,100) 150,000 (5,100) 150,000 (5,100)
=========== ----------- =========== ----------- =========== -----------
TREASURY STOCK-COMMON
Beginning of year 3,673,054 (9,712) 3,530,724 (8,381) 3,530,724 (8,381)
Purchase of common stock 265,980 (2,154) 142,330 (1,331) -- --
----------- ----------- ----------- ----------- ----------- -----------
End of year 3,939,034 (11,866) 3,673,054 (9,712) 3,530,724 (8,381)
=========== ----------- =========== ----------- =========== -----------
TOTAL SHAREHOLDERS' EQUITY $ 93,686 $ 82,005 $ 69,980
=========== =========== ===========
</TABLE>
See accompanying Notes to Consolidated Financial Statements.
16
<PAGE> 18
NATIONAL BEVERAGE CORP. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS
FOR THE FISCAL YEARS ENDED APRIL 29, 2000, MAY 1, 1999 AND MAY 2, 1998
(In thousands)
-------------------------------------------------------------------------------
<TABLE>
<CAPTION>
2000 1999 1998
-------- -------- --------
<S> <C> <C> <C>
OPERATING ACTIVITIES:
Net income $ 13,583 $ 13,169 $ 13,102
Adjustments to reconcile net income to net cash
provided by (used in) operating activities:
Depreciation and amortization 10,163 9,921 9,254
Deferred income tax provision 582 181 692
Loss (gain) on sale of assets (3,364) 74 69
Changes in:
Trade receivables (677) 1,186 (8,437)
Inventories (1,934) (1,805) 188
Prepaid and other assets (3,441) (3,859) (3,201)
Accounts payable 2,809 (6,839) 8,521
Other liabilities, net 1,926 (5,290) 3,795
-------- -------- --------
Net cash provided by operating activities 19,647 6,738 23,983
-------- -------- --------
INVESTING ACTIVITIES:
Property additions (8,559) (6,772) (7,312)
Proceeds from sale of assets 3,557 42 216
Acquisitions, net of cash acquired (5,258) -- --
-------- -------- --------
Net cash used in investing activities (10,260) (6,730) (7,096)
-------- -------- --------
FINANCING ACTIVITIES:
Debt borrowings 24,000 14,000 8,300
Debt repayments (30,334) (15,726) (22,058)
Purchase of common stock (2,154) (1,331) --
Proceeds from stock options exercised 103 82 61
-------- -------- --------
Net cash used in financing activities (8,385) (2,975) (13,697)
-------- -------- --------
NET INCREASE (DECREASE) IN CASH AND EQUIVALENTS 1,002 (2,967) 3,190
CASH AND EQUIVALENTS - BEGINNING OF YEAR 37,480 40,447 37,257
-------- -------- --------
CASH AND EQUIVALENTS - END OF YEAR $ 38,482 $ 37,480 $ 40,447
======== ======== ========
OTHER CASH FLOW INFORMATION:
Interest paid $ 2,867 $ 2,909 $ 5,067
Income taxes paid 7,366 7,071 6,204
</TABLE>
See accompanying Notes to Consolidated Financial Statements.
17
<PAGE> 19
NATIONAL BEVERAGE CORP. AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
1. SIGNIFICANT ACCOUNTING POLICIES
Organization
National Beverage Corp. (the "Company") is a holding company for various
subsidiaries that develop, manufacture, market and distribute a complete
portfolio of quality beverage products throughout the United States. The
Company's proprietary brands include Shasta(R), Faygo(R), and Big Shot(R),
complete lines of multi-flavored and cola soft drinks. In addition, the Company
offers an assortment of premium "good-for-you" beverages geared toward the
health-conscious consumer, including Everfresh(R), Home Juice(R), and Mr.
Pure(R) 100% juice and juice-based products; and LaCROIX(R), Mt. Shasta(TM) and
ClearFruit(R) flavored and spring water products. The Company also provides
specialty products, including VooDoo Rain(TM), a line of alternative beverages
geared toward young consumers, and St. Nick's(TM) holiday soft drinks.
Substantially all of the Company's brands are produced in its fifteen
manufacturing facilities, which are strategically located throughout the
continental United States. The Company also develops and produces soft drinks
for retail grocery chains, warehouse clubs, mass-merchandisers and wholesalers
("allied brands") as well as soft drinks for other beverage companies.
Basis of Presentation
The consolidated financial statements include the accounts of the Company and
its wholly-owned subsidiaries. All significant intercompany balances have been
eliminated. The Company's fiscal year ends the Saturday closest to April 30th.
The preparation of financial statements in conformity with generally accepted
accounting principles requires management to make estimates and assumptions that
affect the amounts reported in the financial statements and accompanying notes.
Although these estimates are based on management's knowledge of current events
and actions it may undertake in the future, they may ultimately differ from
actual results.
Cash and Equivalents
Cash and equivalents are comprised of cash and highly liquid securities
(consisting primarily of short-term money-market investments) with an original
maturity or redemption option of three months or less.
Credit Risk
The Company sells products to a variety of customers and extends credit based on
an evaluation of the customer's financial condition, generally without requiring
collateral. Exposure to losses on receivables varies by customer principally due
to the financial condition of each customer. The Company monitors its exposure
to credit losses and maintains allowances for anticipated losses. At April 29,
2000 and May 1, 1999, one customer represented approximately 13% and 14%,
respectively, of trade receivables. No one customer accounted for more than 10%
of net sales for fiscal 2000, 1999 or 1998.
Customer Contracts
The Company incurs certain costs related to long-term contractual relationships
with national and regional retailers to manufacture and market Company and
allied branded products. These costs are deferred and amortized based on the
contractual unit volume or the straight-line method over the lesser of the
period of benefit or the non-cancelable period of the contract. It is the
18
<PAGE> 20
Company's policy to periodically review and evaluate the future benefits
associated with these costs to determine that deferral and amortization is
justified. Of these costs, amounts associated with remaining periods of one year
or less are included in other current assets and all other amounts are included
in other assets. Advertising costs are expensed as incurred.
Inventories
Inventories are stated at the lower of first-in, first-out cost or market.
Inventories at April 29, 2000 are comprised of finished goods of $15,377,000 and
raw materials of $13,679,000. Inventories at May 1, 1999 are comprised of
finished goods of $11,904,000 and raw materials of $13,303,000.
Property
Property is recorded at cost. Depreciation is computed by the straight-line
method over estimated useful lives of 7 to 30 years for buildings and
improvements, and 3 to 15 years for machinery and equipment. When assets are
retired or otherwise disposed of, the cost and accumulated depreciation are
removed from the respective accounts and any related gain or loss is recognized.
Maintenance and repair costs are charged to expense as incurred, and renewals
and improvements that extend the useful lives of assets are capitalized.
Intangible Assets
Intangible assets consist of goodwill, trademarks, formulas and customer lists
at costs assigned at the date of acquisition and are amortized on a
straight-line basis over estimated useful lives ranging from 10 to 40 years.
Intangible assets at April 29, 2000 and May 1, 1999 consisted of the following:
(In thousands)
2000 1999
---- ----
Goodwill $ 17,122 $ 15,309
Other 5,013 4,913
-------- --------
Total 22,135 20,222
Less accumulated amortization (6,381) (5,747)
-------- --------
Net $ 15,754 $ 14,475
======== ========
The Company periodically evaluates its intangible and other non-current assets
on a non-discounted cash flow basis to assess recoverability. If the estimated
future cash flow associated with an asset is projected to be less than the
carrying amount of the asset, a write-down to fair value measured by discounted
estimated future cash flows would be recorded.
Insurance Programs
The Company maintains self-insured and deductible programs for certain
liability, medical and workers' compensation exposures. The Company accrues for
known claims and estimated incurred but not reported claims not otherwise
covered by insurance.
Revenue Recognition
Revenue from product sales is recognized by the Company when title and risk of
loss passes to the customer, which generally occurs upon shipment.
19
<PAGE> 21
Net Income Per Share
Basic net income per share is computed by dividing net income by the
weighted-average number of common shares outstanding. Diluted net income per
share includes the dilutive effect of stock options.
Segment Reporting
The Company operates in a single operating segment for purposes of presenting
financial information and evaluating performance. As such, the accompanying
consolidated financial statements present financial information in a format that
is consistent with the financial information used by management for internal
use.
2. ACQUISITIONS
In May 1999, the Company acquired the operations and assets of Home Juice, a
Chicago-based producer and distributor of premium juice and juice products. The
assets acquired included a manufacturing facility, receivables, inventory and
the Mr. Pure and Home Juice trademarks. The operating results of Home Juice have
been included in the consolidated statements of income from the date of
acquisition.
3. PROPERTY
Property at April 29, 2000 and May 1, 1999 consisted of the following:
(In thousands)
2000 1999
--------- ---------
Land $ 10,617 $ 8,897
Buildings and improvements 34,416 32,047
Machinery and equipment 89,345 82,972
--------- ---------
Total 134,378 123,916
Less accumulated depreciation (71,948) (67,813)
--------- ---------
Property - net $ 62,430 $ 56,103
========= =========
Depreciation expense was $6,966,000 for fiscal 2000, $6,498,000 for fiscal 1999
and $6,518,000 for fiscal 1998. Other income for the fourth quarter of fiscal
2000 includes a gain of $3.4 million from the sale of a residual interest in an
operating lease.
4. ACCRUED LIABILITIES
Accrued liabilities at April 29, 2000 and May 1, 1999 consisted of the
following:
(In thousands)
2000 1999
------- -------
Accrued promotions $ 5,350 $ 5,048
Accrued compensation 5,343 4,295
Other accrued liabilities 8,953 5,651
------- -------
Total $19,646 $14,994
======= =======
20
<PAGE> 22
5. DEBT
Long-term debt at April 29, 2000 and May 1, 1999 consisted of the following:
(In thousands)
2000 1999
------- -------
Senior Notes $ 8,333 $16,667
Credit Facilities 5,000 7,000
Term Loan Facilities 20,600 16,600
------- -------
Total $33,933 $40,267
======= =======
A subsidiary of National Beverage Corp. has outstanding 9.95% unsecured senior
notes in the original principal amount of $50 million (the "Senior Notes"), of
which the final annual installment of $8.3 million is due on November 1, 2000.
Additionally, certain subsidiaries maintain unsecured revolving credit
facilities aggregating $48 million (the "Credit Facilities") and unsecured term
loan facilities ("Term Loan Facilities") with banks. The Credit Facilities
expire December 9, 2001 and bear interest at 1/2% below the banks' reference
rates or 1% above LIBOR, at the subsidiaries' election. The Term Loan Facilities
are repayable in installments through July 31, 2004, and bear interest at the
banks' reference rates or 1 1/4% above LIBOR, at the subsidiaries' election. The
Company intends to utilize its existing long-term credit facilities to fund the
next principal payment due on its Senior Notes and Terms Loan Facilities.
Certain of the Company's debt agreements contain restrictions which require
subsidiaries to maintain certain financial ratios and minimum net worth, and
limit subsidiaries with respect to incurring additional indebtedness, paying
cash dividends and making certain loans, advances or other investments. At April
29, 2000, net assets of subsidiaries totaling approximately $63 million were
restricted from distribution. The Company was in compliance with all loan
covenants and restrictions and such restrictions are not expected to have a
material adverse impact on the operations of the Company.
The long-term portion of debt at April 29, 2000 matures as follows:
(In thousands)
Fiscal 2002 $23,033
Fiscal 2003 9,200
Fiscal 2004 1,100
Fiscal 2005 600
-------
$33,933
=======
The fair value of debt has been estimated using discounted cash-flow models
incorporating discount rates based on current market interest rates for similar
types of instruments. At April 29, 2000 and May 1, 1999, the difference between
the estimated fair value and the carrying value of debt instruments was not
material.
6. CAPITAL STOCK AND TRANSACTIONS WITH RELATED PARTIES
In January 1998, the Board of Directors authorized the Company to repurchase up
to 800,000 shares of its common stock. In fiscal 2000 and 1999, the Company
purchased 265,980 shares and 142,330 shares, respectively, of common stock on
the open market. Such shares are classified as treasury stock.
21
<PAGE> 23
The Company is a party to a management agreement with Corporate Management
Advisors, Inc. ("CMA"), a corporation owned by the Company's Chairman and Chief
Executive Officer. Under the agreement, the employees of CMA provide the Company
with corporate finance, strategic planning, business development and other
management services for an annual base fee equal to one percent of consolidated
net sales, plus incentive compensation based on certain factors to be determined
by the Compensation Committee of the Company's Board of Directors. The Company
incurred a fee to CMA of $4,263,000, $4,021,000, and $4,007,000 for fiscal 2000,
1999 and 1998, respectively. No incentive compensation has been incurred or
approved under the management agreement since its inception. Included in
accounts payable in the accompanying consolidated balance sheets at April 29,
2000 and May 1, 1999 were amounts due CMA of $879,000 and $1,288,000,
respectively.
7. INCOME TAXES
The provision for income taxes consists of the following:
(In thousands)
2000 1999 1998
------ ------ ------
Current $7,720 $7,687 $7,135
Deferred 582 181 692
------ ------ ------
Total $8,302 $7,868 $7,827
====== ====== ======
The reconciliation of the statutory federal income tax rate to the Company's
effective tax rate is as follows:
2000 1999 1998
------ ------ ------
Statutory federal income tax rate 35.0% 35.0% 35.0%
State income taxes, net of federal benefit 2.4 2.5 1.7
Goodwill and other permanent differences .8 .8 .7
Other, net (.3) (.9) --
----- ----- ------
Effective income tax rate 37.9% 37.4% 37.4%
===== ===== ======
The Company provides deferred income taxes based on the difference between the
financial statement and tax bases of assets and liabilities. A valuation
allowance is established when it is deemed, more likely than not, that the
benefit of deferred tax assets will not be realized. The Company's deferred tax
assets and liabilities as of April 29, 2000 and May 1, 1999 consisted of the
following:
(In thousands)
2000 1999
------- -------
Deferred tax assets:
Accrued expenses and other $ 3,941 $ 2,544
Inventory and amortizable assets 238 575
------- -------
Total deferred tax assets 4,179 3,119
Deferred tax liabilities:
Property and intangibles 10,725 9,478
------- -------
Net deferred tax liabilities $ 6,546 $ 6,359
======= =======
22
<PAGE> 24
8. LEASES
Future minimum rental commitments for non-cancelable operating leases at April
29, 2000 are as follows:
(In thousands)
Fiscal 2001 $ 5,650
Fiscal 2002 4,491
Fiscal 2003 3,971
Fiscal 2004 3,540
Fiscal 2005 2,355
-------
Total minimum lease payments $20,007
=======
Rental expense was $8,179,000 for fiscal 2000, $6,605,000 for fiscal 1999 and
$5,775,000 for fiscal 1998.
9. INCENTIVE AND RETIREMENT PLANS
Long-term incentive compensation for executives is administered through the
Company's 1991 Omnibus Incentive Plan (the "Omnibus Plan"), which provides for
compensatory awards consisting of (i) stock options or stock awards for up to
1,400,000 shares of common stock of the Company, (ii) stock appreciation rights,
dividend equivalents, other stock-based awards in amounts up to 1,400,000 shares
of common stock of the Company and (iii) performance awards consisting of any
combination of the above. The Omnibus Plan is designed to provide an incentive
to the officers (including those who are also directors) and certain other key
employees and consultants of the Company by making available to them an
opportunity to acquire a proprietary interest or to increase such interest in
the Company. The number of shares or options which may be issued under stock
based awards to an individual is limited to 700,000 during any year. Awards may
be granted for no cash consideration or such minimal cash consideration as may
be required by law. Options generally vest over a five-year period and expire
after ten years.
Pursuant to a Special Stock Option plan, the Company has authorized the issuance
of options to purchase up to an aggregate of 400,000 shares of common stock.
Options may be granted for such consideration as determined by the Board or a
Committee of the Board. The Company also authorized the issuance of options to
purchase up to 50,000 shares of common stock to be issued at the direction and
discretion of the Chairman.
In March 1997, the Company's Board of Directors adopted the Key Employee Equity
Partnership Program ("KEEP"), which provides for the granting of stock options
to purchase up to 50,000 shares of common stock to key employees, consultants,
and officers of the Company. Participants who purchase shares of the Company's
stock in the open market receive grants of stock options equal to 50% of the
number of shares purchased, up to a maximum of 6,000 shares in any two-year
period. Options under the KEEP program are automatically forfeited in the event
of the sale of shares originally acquired by the participant. The options are
granted at an initial exercise price of 60% of the purchase price paid for the
shares acquired and reduces to the par value of the Company's stock at the end
of the six-year vesting period. The difference between the exercise price and
the fair market value of the stock on date of grant is amortized over the
vesting period.
23
<PAGE> 25
The Company's 1991 Stock Purchase Plan (the "Stock Purchase Plan") provides for
the purchase of up to 640,000 shares of common stock by employees of the Company
who (i) have been employed by the Company for at least two years, (ii) are not
part-time employees of the Company and (iii) are not owners of five percent (5%)
or more of the common stock of the Company. As of April 29, 2000, no shares have
been issued under the Stock Purchase Plan.
The following is a summary of stock option activity:
<TABLE>
<CAPTION>
2000
---------------------------
Weighted
Average
Exercise 1999 1998
Shares Price Shares Shares
------ ----- ------ ------
<S> <C> <C> <C> <C>
Options outstanding, beginning of year 1,191,276 $ 3.29 1,108,086 1,120,360
Options granted 8,000 5.24 123,300 53,766
Options exercised (55,320) 2.28 (36,800) (34,720)
Options canceled (22,000) 7.08 (3,310) (31,320)
---------- ---------- ----------
Options outstanding, end of year 1,121,956 3.28 1,191,276 1,108,086
========== ========== ==========
Options exercisable, end of year 920,812 804,920 659,332
Options available for grant, end of year 586,164 572,164 522,154
</TABLE>
The following is a summary of stock options outstanding at April 29, 2000:
<TABLE>
<CAPTION>
Options Outstanding Options Exercisable
-------------------------------------------------------- --------------------------
Weighted
Average Weighted Weighted
Remaining Average Average
Range of Contractual Exercise Exercise
Exercise Price Life Shares Price Shares Price
-------------- ---- ------ ----- ------ -----
<S> <C> <C> <C> <C> <C>
$.13 2 years 88,000 $ .13 88,000 $ .13
$.38-$.63 2 years 73,600 .48 73,600 .48
$1.25 2 years 54,400 1.25 54,400 1.25
$1.97-$2.56 4 years 584,240 2.17 558,512 2.16
$4.75-$4.95 6 years 7,500 4.76 4,200 4.75
$5.00 6 years 155,400 5.00 93,240 5.00
$5.10-$6.43 8 years 34,516 5.82 -- --
$9.88 8 years 94,300 9.88 18,860 9.88
$10.00-$13.50 3 years 30,000 11.67 30,000 11.67
--------- -------
1,121,956 3.28 920,812 2.54
========= =======
</TABLE>
The option price range for all options outstanding at the end of the fiscal year
was $.13 to $13.50 for 2000 and 1999, and $.13 to $11.50 for 1998. The option
price range for options exercised during the fiscal year was $.63 to $5.00 for
2000, 1999 and 1998.
The Company applies Accounting Principles Board Opinion No. 25, "Accounting for
Stock Issued to Employees" ("APB 25"), and related interpretations, in
accounting for stock-based awards to employees. Under APB 25, the Company
generally recognizes no compensation
24
<PAGE> 26
expense with respect to such awards unless the exercise price of options granted
is less than the market price on the date of grant.
Pro forma information regarding net income and earnings per share is required by
Statement of Financial Accounting Standards No. 123, "Accounting and Disclosure
of Stock-Based Compensation" ("SFAS 123") for awards granted after December 15,
1994, as if the Company had accounted for its stock-based awards to employees
under the fair value method of SFAS 123. The fair value of stock option grants
was estimated using a Black-Scholes option pricing model with the following
assumptions used for grants: expected life of 10 years; volatility factor of
approximately 50% for 2000, 1999 and 1998, risk free interest rates of
approximately 6% for 2000, 1999, and 1998; and no dividend payments. The
weighted average fair value of options granted during the fiscal year was $6.46
for 2000, $6.53 for 1999, and $5.70 for 1998. Had compensation cost for the
Company's options plans been determined and recorded consistent with the
Black-Scholes option pricing model in accordance with SFAS 123, the Company's
net income and earnings per share for fiscal 2000, 1999 and 1998 would have been
reduced on a pro forma basis by less than $200,000 ($.01 per share) for each
year. The above pro forma effect on net income and earnings per share may not be
indicative of future results because it does not take into consideration pro
forma compensation expense related to grants made prior to fiscal 1996, and
additional grants in future years are possible.
The Company contributes to various defined contribution retirement plans (which
cover employees under various collective bargaining agreements) and
discretionary profit sharing plans (which cover all non-union employees).
Contributions were $1,289,000 for fiscal 2000, $1,084,000 for fiscal 1999, and
$1,349,000 for fiscal 1998.
10. COMMITMENTS AND CONTINGENCIES
From time to time, the company is a party to various litigation matters arising
in the ordinary course of business. In the opinion of management, the ultimate
disposition of such matters will not have a material adverse effect on the
Company's consolidated financial position or results of operations.
In the ordinary course of its business, the Company enters into commitments for
the supply of certain raw materials, none of which are material to the Company's
financial position.
25
<PAGE> 27
11. QUARTERLY FINANCIAL DATA (UNAUDITED)
<TABLE>
<CAPTION>
(In thousands, except per share amounts)
First Second Third Fourth
Quarter Quarter Quarter Quarter
------- ------- ------- -------
Fiscal 2000
-----------
<S> <C> <C> <C> <C>
Net sales $130,085 $105,111 $ 83,130 $107,943
Gross profit 43,515 34,405 26,255 35,849
Net income 6,611 2,847 115 4,010
Net income per common share:
Basic $ .35 $ .16 $ .01 $ .22
Diluted $ .34 $ .15 $ .01 $ .21
Fiscal 1999
-----------
Net sales $121,906 $101,257 $ 74,393 $104,552
Gross profit 41,940 32,568 23,387 35,369
Net income 6,345 2,986 23 3,815
Net income per common share:
Basic $ .34 $ .16 -- $ .21
Diluted $ .33 $ .15 -- $ .20
</TABLE>
26
<PAGE> 28
REPORT OF INDEPENDENT CERTIFIED PUBLIC ACCOUNTANTS
To the Board of Directors and
Shareholders of National Beverage Corp.
In our opinion, the consolidated financial statements listed in the index
appearing under Item 14(a)(1) on page 29 present fairly, in all material
respects, the financial position of National Beverage Corp. and its subsidiaries
at April 29, 2000 and May 1, 1999, and the results of their operations and their
cash flows for each of the three years in the period ended April 29, 2000, in
conformity with accounting principles generally accepted in the United States.
In addition, in our opinion, the financial statement schedules listed in the
index appearing under Item 14(a)(2) on page 29 present fairly, in all material
respects, the information set forth therein when read in conjunction with the
related consolidated financial statements. These financial statements and
financial statement schedules are the responsibility of the Company's
management; our responsibility is to express an opinion on these financial
statements and financial statement schedules based on our audits. We conducted
our audits of these statements in accordance with auditing standards generally
accepted in the United States, which require that we plan and perform the audit
to obtain reasonable assurance about whether the financial statements are free
of material misstatement. An audit includes examining, on a test basis, evidence
supporting the amounts and disclosures in the financial statements, assessing
the accounting principles used and significant estimates made by management, and
evaluating the overall financial statement presentation. We believe that our
audits provide a reasonable basis for the opinion expressed above.
PricewaterhouseCoopers LLP
Miami, Florida
July 26, 2000
27
<PAGE> 29
ITEM 9. CHANGES IN AND DISAGREEMENTS WITH ACCOUNTANTS ON ACCOUNTING AND
FINANCIAL DISCLOSURE
None
PART III
ITEM 10. DIRECTORS AND EXECUTIVE OFFICERS OF THE REGISTRANT
Information concerning directors and the nominees for director of National
Beverage Corp. is included under the caption "Election of Directors" and
"Information as to Nominees and Other Directorships" in the Company's Proxy
Statement for the Annual Meeting of Shareholders to be filed on or before August
28, 2000 and is hereby incorporated by reference.
The following table sets forth certain information with respect to the officers
of the Registrant as of April 29, 2000.
<TABLE>
<CAPTION>
Name Age Position with Company
---- --- ---------------------
<S> <C> <C>
Nick A. Caporella (1) 64 Chairman of the Board, Chief
Executive Officer, President and
Chief Financial Officer
Joseph G. Caporella (2) 40 Executive Vice President and Secretary
George R. Bracken (3) 55 Vice President and Treasurer
Dean A. McCoy (4) 43 Vice President - Controller
Robert C. Spindler (5) 50 Vice President-Chief Administrative Officer
</TABLE>
(1) Mr. Nick A. Caporella has served as Chairman of the Board, Chief Executive
Officer, Chief Financial Officer, and Director since the Company's
inception in 1985. Mr. Caporella also serves as Chairman of the Nominating
Committee. Prior to March 11, 1994, Mr. Caporella served as President and
Chief Executive Officer (since 1976) and Chairman of the Board (since 1989)
of Burnup & Sims Inc. Since January 1, 1992, Mr. Caporella's services have
been provided to the Company by Corporate Management Advisors, Inc., a
company which he owns.
(2) Mr. Joseph G. Caporella has served as Executive Vice President and
Secretary since January 1991 and Director since January 1987. Joseph G.
Caporella is the son of Nick A. Caporella.
(3) Mr. George R. Bracken was named Vice President and Treasurer in October
1996. Since March 1994, Mr. Bracken's services have been provided to the
Company by Corporate Management Advisors, Inc.
(4) Mr. Dean A. McCoy was named Vice President - Controller in July 1993 and,
prior to that date, served as Controller since joining the Company in
December 1991.
(5) Mr. Robert C. Spindler was named Vice President - Chief Administrative
Officer in July 1997. Prior to joining the Company, Mr. Spindler was Vice
President and Chief Financial Officer for Renaissance Cruises, Inc. from
May 1994 to August 1995.
28
<PAGE> 30
All officers serve until their successors are chosen and may be removed at any
time by the Board of Directors. Officers are normally elected each year at the
first meeting of the Board of Directors after the annual meeting of
shareholders.
ITEM 11. EXECUTIVE COMPENSATION
National Beverage Corp. 2000 Proxy Statement, which will be filed on or before
August 28, 2000, is incorporated herein by reference.
ITEM 12. SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND MANAGEMENT
National Beverage Corp. 2000 Proxy Statement, which will be filed on or before
August 28, 2000, is incorporated herein by reference.
ITEM 13. CERTAIN RELATIONSHIPS AND RELATED TRANSACTIONS
National Beverage Corp. 2000 Proxy Statement, which will be filed on or before
August 28, 2000, is incorporated herein by reference.
PART IV
ITEM 14. EXHIBITS, FINANCIAL STATEMENT SCHEDULES, AND REPORTS ON FORM 8-K
<TABLE>
<CAPTION>
<S> <C> <C>
(a) 1. Financial Statements Page
The following consolidated financial statements of National Beverage Corp.
and subsidiaries are included herein:
Consolidated Balance Sheets 14
Consolidated Statements of Income 15
Consolidated Statements of Shareholders' Equity 16
Consolidated Statements of Cash Flows 17
Notes to Consolidated Financial Statements 18
Report of Independent Certified Public Accountants 27
2. Financial Statement Schedules
The following are included herein:
Schedule I - Condensed Financial Information of Registrant 33
Schedule II - Valuation and Qualifying Accounts 37
Schedules other than those listed above have been omitted since they
are either not applicable, not required or the information is included
elsewhere herein.
3. Exhibits
See Exhibit Index which follows.
(b) Reports on Form 8-K
No reports on Form 8-K were filed for the quarter ended April 29, 2000.
</TABLE>
29
<PAGE> 31
EXHIBIT INDEX
Exhibit No. Description
----------- -----------
3.1 Restated Certificate of Incorporation (1)
3.2 Amended and Restated By-Laws (1)
10.1 Management Agreement between the Company and
Corporate Management Advisors, Inc. (2)
10.2 National Beverage Corp. Investment and Profit Sharing
Plan (1)
10.3 National Beverage Corp. 1991 Omnibus Incentive Plan
(2)
10.4 National Beverage Corp. 1991 Stock Purchase Plan (2)
10.5 Note Purchase Agreement, dated June 5, 1992, among
NewBevCo, Inc. and Purchasers (3)
10.6 Credit Agreement, dated as of September 23, 1993,
between NewBevCo, Inc. and the lender therein (4)
10.7 Agreement, dated March 11, 1994, between Burnup &
Sims Inc. and National Beverage Corp. (5)
10.8 First Amendment to Credit Agreement, dated November
10, 1994, between NewBevCo and lender therein (6)
10.9 Second Amendment to Credit Agreement, dated November
21, 1995, between NewBevCo and lender therein (7)
10.10 Third Amendment to Credit Agreement, dated February
29, 1996, between NewBevCo and lender therein (8)
10.11 Fourth Amendment to Credit Agreement, dated April 24,
1996, between NewBevCo and lender therein (8)
10.12 Fifth Amendment to Credit Agreement, dated November
14, 1996, between NewBevCo and lender therein (9)
10.13 Term Loan Credit Agreement, dated February 29, 1996,
between NewBevCo and lender therein (8)
10.14 Letter Modification to Term Loan Credit Agreement
dated April 24, 1996, between NewBevCo and lender
therein (8)
10.15 Amendment No. 1 to the National Beverage Corp.
Omnibus Incentive Plan (8)
30
<PAGE> 32
10.16 Special Stock Option Plan (10)
10.17 Amendment No. 2 to the National Beverage Corp.
Omnibus Incentive Plan (11)
10.18 Key Employee Equity Partnership Program (11)
10.19 Amended and Restated Credit Agreement, dated December
10, 1998, between NewBevCo and lender therein (12)
10.20 Third Amendment to Term Loan Credit Agreement, dated
June 7, 1999, between NewBevCo and lender therein
(12)
21.1 Subsidiaries of Registrant (13)
23.1 Consent of Independent Certified Public Accountants
(13)
27.0 Financial Data Schedule (for SEC use only) (13)
(1) Previously filed with the Securities and Exchange Commission as an exhibit
to the Form S-1 Registration Statement (File No. 33-38986) on February 19,
1991 and is incorporated herein by reference.
(2) Previously filed with the Securities and Exchange Commission as an exhibit
to Amendment No. 1 to Form S-1 Registration Statement (File No. 33-38986)
on July 26, 1991 and is incorporated herein by reference.
(3) Previously filed with the Securities and Exchange Commission as an exhibit
to Annual Report on Form 10-K for the fiscal year ended May 2, 1992 and is
incorporated herein by reference.
(4) Previously filed with the Securities and Exchange Commission as an exhibit
to Quarterly Report on Form 10-Q for the fiscal period ended October 30,
1993 and is incorporated herein by reference.
(5) Previously filed with the Securities and Exchange Commission as an exhibit
to Quarterly Report on Form 10-Q for the fiscal period ended January 29,
1994 and is incorporated herein by reference.
(6) Previously filed with the Securities and Exchange Commission as an exhibit
to Quarterly Report on Form 10-Q for the fiscal period ended October 29,
1994 and is incorporated herein by reference.
(7) Previously filed with the Securities and Exchange Commission as an exhibit
to Quarterly Report on Form 10-Q for the fiscal period ended January 27,
1996 and is incorporated herein by reference.
(8) Previously filed with the Securities and Exchange Commission as an exhibit
to Annual Report on Form 10-K for the fiscal year ended April 27, 1996 and
is incorporated herein by reference.
(9) Previously filed with the Securities and Exchange Commission as an exhibit
to Quarterly Report on Form 10-Q for the fiscal period ended January 25,
1997 and is incorporated herein by reference.
(10) Previously filed with the Securities and Exchange Commission as an exhibit
to Registration Statement on Form S-8 (File No. 33-95308) on August 1,
1995 and is incorporated herein by reference.
(11) Previously filed with the Securities and Exchange Commission as an exhibit
to Annual Report on Form 10-K for the fiscal year ended May 3, 1997 and is
incorporated herein by reference.
(12) Previously filed with the Securities and Exchange Commission as an exhibit
to Annual Report on Form 10-K for the fiscal year ended May 1, 1999 and is
incorporated herein by reference.
(13) Filed herein.
31
<PAGE> 33
SIGNATURES
Pursuant to the requirements of Section 13 or 15(d) 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.
National Beverage Corp.
(Registrant)
/s/ Dean A. McCoy Date: July 26, 2000
--------------------------
Dean A. McCoy
Vice President - Controller
(Principal Accounting Officer)
Pursuant to the requirements of the Securities Exchange Act of 1934, this report
has been signed below by the following persons on behalf of the Registrant and
in the capacities and on the dates indicated.
/s/ Nick A. Caporella Date: July 26, 2000
--------------------------
Nick A. Caporella
President and Chief Executive Officer and
Chairman of the Board (Principal Executive and
Financial Officer)
/s/ Joseph G. Caporella Date: July 26, 2000
--------------------------
Joseph G. Caporella
Executive Vice President and Secretary
/s/ Samuel C. Hathorn, Jr. Date: July 26, 2000
--------------------------
Samuel C. Hathorn, Jr.
Director
/s/ S. Lee Kling Date: July 26, 2000
--------------------------
S. Lee Kling
Director
/s/ Joseph P. Klock, Jr. Date: July 26, 2000
--------------------------
Joseph P. Klock, Jr.
Director
32
<PAGE> 34
Schedule I
NATIONAL BEVERAGE CORP. (PARENT COMPANY)
CONDENSED BALANCE SHEETS
AS OF APRIL 29, 2000 AND MAY 1, 1999
(In thousands, except share amounts)
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
2000 1999
--------- ---------
<S> <C> <C>
ASSETS
Current assets:
Cash and equivalents $ 10,104 $ 10,051
Deferred income taxes 1,465 1,985
--------- ---------
Total current assets 11,569 12,036
Investment in subsidiaries - net 92,049 79,734
--------- ---------
$ 103,618 $ 91,770
========= =========
LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities:
Income taxes payable $ 1,921 $ 1,421
Deferred income taxes 8,011 8,344
Commitments and contingencies
Shareholders' equity:
Preferred stock, 7% cumulative, $1 par value, aggregate liquidation
preference of $15,000 - 1,000,000 shares authorized; 150,000
shares issued; no shares outstanding 150 150
Common stock, $.01 par value - authorized 50,000,000 shares;
issued 22,117,332 shares (2000) and 22,062,012 shares (1999);
outstanding: 18,178,298 shares (2000) and 18,388,958 shares (1999) 221 221
Additional paid-in capital 15,556 15,304
Retained earnings 94,725 81,142
Treasury stock-at cost:
Preferred stock - 150,000 shares (5,100) (5,100)
Common stock - 3,939,034 shares (2000) and 3,673,054 shares (1999) (11,866) (9,712)
--------- ---------
Total shareholders' equity 93,686 82,005
--------- ---------
$ 103,618 $ 91,770
========= =========
</TABLE>
See accompanying Notes to Condensed Financial Statements.
33
<PAGE> 35
Schedule I (continued)
NATIONAL BEVERAGE CORP. (PARENT COMPANY)
CONDENSED STATEMENTS OF INCOME
FOR THE FISCAL YEARS ENDED APRIL 29, 2000, MAY 1, 1999 AND MAY 2, 1998
(In thousands, except per share amounts)
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
2000 1999 1998
------- ------- -------
<S> <C> <C> <C>
Equity in pre-tax earnings of consolidated subsidiaries $21,885 $21,037 $20,929
Provision for income taxes 8,302 7,868 7,827
------- ------- -------
Net income $13,583 $13,169 $13,102
======= ======= =======
Net income per share-
Basic $ .74 $ .71 $ .71
======= ======= =======
Diluted $ .71 $ .68 $ .68
======= ======= =======
Average common shares outstanding-
Basic 18,321 18,474 18,477
======= ======= =======
Diluted 19,018 19,278 19,323
======= ======= =======
</TABLE>
See accompanying Notes to Condensed Financial Statements.
34
<PAGE> 36
Schedule I (continued)
NATIONAL BEVERAGE CORP. (PARENT COMPANY)
CONDENSED STATEMENTS OF CASH FLOWS
FOR THE FISCAL YEARS ENDED APRIL 29, 2000, MAY 1, 1999 AND MAY 2, 1998
(In thousands)
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
2000 1999 1998
-------- -------- --------
<S> <C> <C> <C>
OPERATING ACTIVITIES:
Net income $ 13,583 $ 13,169 $ 13,102
Adjustments to reconcile net income to net cash
provided by (used in) operating activities:
Deferred income tax provision 582 181 692
Undistributed equity in net income of
consolidated subsidiaries (13,583) (13,169) (13,102)
Changes in accounts payable and accrued liabilities -- (1,480) (747)
-------- -------- --------
Net cash provided by (used in) operating activities 582 (1,299) (55)
-------- -------- --------
FINANCING ACTIVITIES:
Advances from (to) subsidiaries 1,522 12,405 (31)
Purchase of common stock (2,154) (1,331) --
Proceeds from stock options exercised 103 82 61
-------- -------- --------
Net cash provided by (used in) financing activities (529) 11,156 30
-------- -------- --------
NET INCREASE (DECREASE) IN CASH AND EQUIVALENTS 53 9,857 (25)
CASH AND EQUIVALENTS - BEGINNING OF YEAR 10,051 194 219
-------- -------- --------
CASH AND EQUIVALENTS - END OF YEAR $ 10,104 $ 10,051 $ 194
======== ======== ========
</TABLE>
See accompanying Notes to Condensed Financial Statements.
35
<PAGE> 37
Schedule I (continued)
NATIONAL BEVERAGE CORP. (PARENT COMPANY)
NOTES TO CONDENSED FINANCIAL STATEMENTS
The accompanying parent company financial statements of National Beverage Corp.
("NBC") should be read in conjunction with the consolidated financial statements
of NBC and its consolidated subsidiaries.
1. Basis of Presentation
NBC is a holding company for various wholly-owned subsidiaries which are
engaged in the manufacture and distribution of soft drinks and other
beverages. NBC's investments in its wholly-owned subsidiaries are reported
in these parent company financial statements using the equity method of
accounting.
2. Long-Term Debt
Certain subsidiaries of NBC have unsecured senior notes and bank credit
facilities outstanding. See Note 5 of Notes to Consolidated Financial
Statements. These debt agreements contain restrictions which, among other
things, limit the subsidiaries from paying cash dividends to the parent.
As of April 29, 2000, net assets of the subsidiaries totaling
approximately $63 million were restricted from distribution.
3. Capital Stock and Transactions with Related Parties
See Note 6 of Notes to Consolidated Financial Statements for information
related to capital stock and transactions with related parties.
36
<PAGE> 38
Schedule II
NATIONAL BEVERAGE CORP. AND SUBSIDIARIES
VALUATION AND QUALIFYING ACCOUNTS
For the Fiscal Years Ended April 29, 2000, May 1, 1999, and May 2, 1998
(In thousands)
<TABLE>
<CAPTION>
Balance at Balance
Beginning Charged Net at End
Description of Period to Expenses Charge-Offs of Period
----------- --------- ----------- ----------- ---------
<S> <C> <C> <C> <C>
Year Ended April 29, 2000:
Allowance for doubtful
accounts receivable $671 $133 $(270) $534
==== ==== ===== ====
Year Ended May 1, 1999:
Allowance for doubtful
accounts receivable $715 $ 45 $ (89) $671
==== ==== ===== ====
Year Ended May 2, 1998:
Allowance for doubtful
accounts receivable $608 $179 $ (72) $715
==== ==== ===== ====
</TABLE>
37
