<PAGE> 1
SECURITIES AND EXCHANGE COMMISSION
Washington, D. C. 20549
FORM 10-Q
QUARTERLY REPORT UNDER SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934
For the Thirteen Weeks Ended Commission File Number
February 22, 1998 0-13944
GoodMark Foods, Inc.(R)
(Exact name of Registrant as specified in its charter)
North Carolina 56-1330788
(State of incorporation) (I.R.S. Employer Identification No.)
6131 Falls of Neuse Road, Raleigh, North Carolina 27609
(Address of principal executive offices) (Zip Code)
Registrant's telephone number, including area code: (919) 790-9940
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, and (2) has been subject to such filing requirements
for the past 90 days.
Yes [X] No [ ]
Number of shares outstanding of Registrant's Common Stock,
$.01 par value, as of March 29, 1998 6,985,712
1 of 11
<PAGE> 2
GoodMark Foods, Inc.(R)
Form 10-Q Quarterly Report
Index
Page
PART I. Financial Information
Item 1. Consolidated financial statements
Consolidated balance sheets 3
Consolidated statements of income 4
Consolidated statements of cash flows 5
Notes to consolidated financial statements 6
Item 2. Management's discussion and analysis of financial
condition and results of operations 8
Part II. Other Information
Item 5. Other information 9
Item 6. Exhibits and reports on Form 8-K 10
2 of 11
<PAGE> 3
PART I - FINANCIAL INFORMATION
ITEM 1. CONSOLIDATED FINANCIAL STATEMENTS
GOODMARK FOODS, INC
UNAUDITED CONSOLIDATED BALANCE SHEETS
FEBRUARY 22, 1998 AND MAY 25, 1997
($000's)
<TABLE>
<CAPTION>
February 22, 1998 May 25, 1997
----------------- ------------
<S> <C> <C>
ASSETS
Current assets
Cash and cash equivalents $ 2,386 $ 1,443
Accounts and notes receivable 6,000 7,618
Inventories 15,625 13,081
Prepaid expenses 6,098 5,475
Net assets of discontinued operations -- 1,227
Other current assets 2,620 2,984
------- -------
Total current assets 32,729 31,828
Property and equipment, net 49,311 50,926
Other non-current assets 1,619 1,951
------- -------
Total $83,659 $84,705
======= =======
LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities
Accounts payable $ 3,847 $ 5,762
Net liabilities of discontinued operations 100 --
Accrued expenses and other liabilities 10,640 7,959
------- -------
Total current liabilities 14,587 13,721
Long-term debt and other long-term obligations 15,192 18,431
Deferred income taxes 5,762 5,762
Shareholders' equity 48,118 46,791
------- -------
Total $83,659 $84,705
======= =======
</TABLE>
See accompanying notes to consolidated financial statements.
3 of 11
<PAGE> 4
PART I, ITEM 1. CONSOLIDATED FINANCIAL STATEMENTS (Continued)
GOODMARK FOODS, INC.
UNAUDITED CONSOLIDATED STATEMENTS OF INCOME
FOR THE 13- AND 39-WEEK PERIODS ENDED
FEBRUARY 22, 1998 AND FEBRUARY 23, 1997
($000's)
<TABLE>
<CAPTION>
13 Weeks Ended 39 Weeks Ended
------------------------------- ---------------------------------
Feb. 22, 1998 Feb. 23, 1997 Feb. 22, 1998 Feb. 23, 1997
------------- ------------- ------------- -------------
<S> <C> <C> <C> <C>
Net sales $38,295 $35,094 $123,044 $118,799
Cost of goods sold 22,487 22,182 73,104 71,947
------- ------- -------- --------
Gross profit 15,808 12,912 49,940 46,852
Selling, general, and
administrative expenses 12,126 11,905 38,728 39,314
------- ------- -------- --------
Income from operations 3,682 1,007 11,212 7,538
Interest and other net expense (income) 197 252 529 404
------- ------- -------- --------
Income before income taxes 3,485 755 10,683 7,134
Income taxes 1,314 284 4,021 2,649
------- ------- -------- --------
Income from continuing operations 2,171 471 6,662 4,485
Income from discontinued operations,
net of tax -- 5 -- 20
------- ------- -------- --------
Net income $ 2,171 $ 476 $ 6,662 $ 4,505
======= ======= ======== ========
Earnings per common share-basic $ 0.31 $ 0.06 $ 0.94 $ 0.60
======= ======= ======== ========
Earnings per common share-diluted $ 0.30 $ 0.06 $ 0.91 $ 0.58
======= ======= ======== ========
Average shares outstanding-basic 6,984 7,445 7,066 7,545
======= ======= ======== ========
Average shares outstanding-diluted 7,236 7,726 7,319 7,826
======= ======= ======== ========
Dividends per share $ 0.06 $ 0.05 $ 0.18 $ 0.15
======= ======= ======== ========
</TABLE>
See accompanying notes to consolidated financial statements.
4 of 11
<PAGE> 5
PART I, ITEM 1. CONSOLIDATED FINANCIAL STATEMENTS (Continued)
GOODMARK FOODS, INC.
UNAUDITED CONSOLIDATED STATEMENTS OF CASH FLOWS
FOR THE 39-WEEK PERIODS ENDED
FEBRUARY 22, 1998 AND FEBRUARY 23, 1997
($000's)
<TABLE>
<CAPTION>
39 Weeks Ended
---------------------------------
February 22, February 23,
1998 1997
-------- --------
<S> <C> <C>
Cash flows from operating activities:
Net income $ 6,662 $ 4,505
Adjustments to reconcile net income to net
cash provided by operating activities:
Depreciation and amortization 4,223 4,406
Amortization of deferred expenses 76 76
Loss on disposal of fixed assets 19 29
Changes in assets and liabilities:
Net (increase) decrease in assets 658 (4,131)
Net decrease in liabilities (576) (1,268)
-------- --------
NET CASH PROVIDED BY OPERATING ACTIVITIES 11,062 3,617
-------- --------
Cash flows from (used in) investing activities:
Proceeds from disposal of fixed assets 176 1,481
Capital expenditures (2,488) (3,133)
Decrease in other assets 16 15
Net cash provided by discontinued operations 1,289 --
-------- --------
NET CASH USED IN INVESTING ACTIVITIES (1,007) (1,637)
-------- --------
Cash flows from (used in) financing activities:
Proceeds from issuance of long-term debt 6,800 26,950
Principal payments on long-term debt and
other long-term obligations (10,050) (23,250)
Common stock issued under dividend reinvestment plan 49 50
Repurchase of common stock (5,012) (4,255)
Stock options exercised 372 422
Cash dividends paid (1,271) (1,138)
-------- --------
NET CASH USED IN FINANCING ACTIVITIES (9,112) (1,221)
-------- --------
Net increase in cash and cash equivalents 943 759
Cash and cash equivalents at beginning of period 1,443 858
-------- --------
Cash and cash equivalents at end of period $ 2,386 $ 1,617
======== ========
</TABLE>
See accompanying notes to consolidated financial statements.
5 of 11
<PAGE> 6
PART I, ITEM 1. CONSOLIDATED FINANCIAL STATEMENTS (Continued)
GOODMARK FOODS, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
($000's)
1) The Notes to Consolidated Financial Statements included in Registrant's
annual report for the fiscal year ended May 25, 1997 as incorporated in
Form 10-K filed with the Securities and Exchange Commission on August
22, 1997 should be read in conjunction with these quarterly financial
statements.
2) The financial information herein is unaudited. The information reflects
all normal recurring adjustments which are necessary in management's
opinion for a fair statement of results for the interim periods
presented. Interim results are not necessarily indicative of results
for the fiscal year. Certain reclassifications have been made to prior
year's financial statements to conform to the classifications used in
fiscal 1998.
In preparing financial statements that conform with generally accepted
accounting principles, management must make estimates and assumptions
that affect the reported amounts of assets and liabilities, disclosure
of contingent assets and liabilities at the date of the financial
statements and amounts of revenues and expenses reflected during the
reporting period. Actual results could differ from those estimates.
3) Inventories are stated at the lower of last-in, first-out (LIFO) cost
or market. Inventories consisted of the following in thousands of
dollars:
<TABLE>
<CAPTION>
2/22/98 5/25/97
------- -------
<S> <C> <C>
Raw materials $ 6,417 $ 5,131
Work-in-process 799 768
Finished goods 9,068 7,898
Less LIFO reserve (659) (716)
------- -------
Inventories, net $15,625 $13,081
======= =======
</TABLE>
4) Interest and other net expense (income) consisted of the following in
thousands of dollars:
<TABLE>
<CAPTION>
13 Weeks Ended 26 Weeks Ended
2/22/98 2/23/97 2/22/98 2/23/97
------- ------- ------- -------
<S> <C> <C> <C> <C>
Interest expense $ 248 $ 289 $ 747 $ 768
Interest income (36) (9) (108) (43)
Other expense (income) (15) (28) (110) (321)
----- ----- ----- -----
Other expense (income), net $ 197 $ 252 $ 529 $ 404
===== ===== ===== =====
</TABLE>
6 of 11
<PAGE> 7
5) In the period ending February 22, 1998, the Company implemented
Statement of Financial Accounting Standards No. 128, "Earnings Per
Share" ("SFAS 128"). SFAS 128 specifies the computation, presentation
and disclosure requirements of earnings per share ("EPS"). SFAS 128
requires a dual presentation of basic and diluted EPS. Basic EPS, which
excludes the impact of common stock equivalents, replaces primary EPS.
Diluted EPS, which utilizes the average market price per share as
opposed to the greater of the average market price per share or ending
market price per share when applying the treasury stock method in
determining common stock equivalents, replaces fully diluted EPS.
Calculations of earnings per share amounts are given below:
<TABLE>
<CAPTION>
13 Weeks Ended 39 Weeks Ended
------------------- -------------------
2/22/98 2/23/97 2/22/98 2/23/97
------- ------- ------- -------
<S> <C> <C> <C> <C>
Basic Earnings Per Share:
Numerator:
Net income $2,171 $ 476 $6,662 $4,505
Denominator:
Average common shares outstanding 6,984 7,445 7,066 7,545
------ ------ ------ ------
Basic EPS $ 0.31 $ 0.06 $ 0.94 $ 0.60
====== ====== ====== ======
Diluted Earnings Per Share:
Numerator:
Net income $2,171 $ 476 $6,662 $4,505
Denominator:
Average common shares outstanding 6,984 7,445 7,066 7,545
Equivalent shares from options 252 281 253 281
------ ------ ------ ------
Average common and common-equivalent
shares outstanding 7,236 7,726 7,319 7,826
------ ------ ------ ------
Diluted EPS $ 0.30 $ 0.06 $ 0.91 $ 0.58
====== ====== ====== ======
</TABLE>
7 of 11
<PAGE> 8
ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND
RESULTS OF OPERATIONS
($000's)
Material Changes in Financial Condition from Fiscal Year End
The Company maintains a strong position of liquidity and has sufficient
financial resources to meet its ongoing operating needs, cash dividend payments,
capital expenditures, and stock repurchases through cash flow generated from
current operations and existing bank lines of credit. There were no material
changes in financial condition since the fiscal year end date. The current ratio
at February 22, 1998 was 2.2 compared to 2.3 at May 25, 1997. Long term debt and
obligations were 24% of total capitalization at February 22, 1998 compared to
28% at fiscal year end. Long term debt has been reduced by principle payments
totaling $3,250 since the fiscal year end date. The increased inventory level is
in anticipation of strong demand expected in the fourth fiscal quarter.
The sale of the Jesse Jones packaged meats business was completed on October 6,
1997, and the transition production concluded in December, 1997.
Material Changes in Results of Operations for the Third Fiscal Quarter and Nine
Months
Due to the fiscal 1997 decision to sell the Jesse Jones packaged meats business,
the Company has reclassified all sales and earnings of the Jesse Jones packaged
meats business into discontinued operations for all fiscal periods for
comparison purposes. See Note 2 of the Notes to Consolidated Financial
Statements in the 1997 Annual Report to Shareholders. Net sales from continuing
operations, which are snack items only, for the third quarter of fiscal 1998
were $38,295, up 9% over net sales of $35,094 in the third quarter of last year.
For the first nine months, net sales from continuing operations increased 4% to
$123,044 from $118,799 in the first nine months of last year. These revenue
gains are due to increased selling and marketing activities.
Third quarter gross profit margin rate was 41% compared to 37% a year ago. For
the first nine months the gross profit margin rate was 41% versus 39% last year.
The improved gross profit margin rates are due to the favorable raw material
costs, operating efficiency gains at our plants, and the price increases we took
on our major brand in the third quarter on fiscal 1997.
Selling, general, and administrative expenses were 32% as a percentage of sales
for the third quarter and the first nine months of this year compared to 34% for
last year's third quarter and 33% for last years first nine months.
8 of 11
<PAGE> 9
Net income for the third quarter was $2,171 or $.30 per share-diluted, up from
$476, or $.06 per share-diluted for last year's third quarter. Net income for
the first nine months was up to $6,662 or $.91 per share-diluted, from $4,505 or
$.58 per share-diluted in the year-earlier period. The Company has repurchased
300,000 shares of its common stock during fiscal 1998. The share repurchases
favorably impacted per share comparisons to last year's third quarter and first
nine months by $.02 in both periods.
PART II - OTHER INFORMATION
ITEM 5. OTHER INFORMATION
On March 23, 1998, the Board of Directors declared a regular quarterly cash
dividend of $.06 per share. The dividend is payable May 1, 1998, to shareholders
of record as of the close of business on April 15, 1998.
In connection with the safe harbor provisions of the Private Securities
Litigation Reform Act of 1995, the Company is hereby filing cautionary
statements identifying important factors that could cause the Company's actual
results to differ materially from those projected in forward-looking statements
of the Company made by, or on behalf of, the Company. The Company wishes to
advise readers that the following important factors, among others, in some cases
have affected and in the future could affect, the Company's actual results and
could cause the Company's actual results to differ materially from those
expressed in any forward-looking statements made by, or on behalf of, the
Company:
a. Specific risks and uncertainties to the Company's financial performance
include all the macro and micro economic factors that affect any
business operating in competitive markets in a competitive world
economy.*
b. Risk factors most relevant to the Company's short term and longer term
financial performance are attainment of its assumptions concerning unit
volumes, pricing, raw material costs, operating costs, and operating
efficiencies.
c. The attainment of these assumptions is determined by the successful
execution of management's plans as well as external factors. External
factors include general economic conditions, snack market growth, meat
snack category growth, competitors actions, and customer acceptance of
the Company's products and promotions.
* The reader is urged to refer to the Company's FORM 10K, PART I, ITEM 1.,
"Narrative Description of the Business" to better understand the unique
characteristics of the Company's business.
9 of 11
<PAGE> 10
ITEM 6. EXHIBITS AND REPORTS ON FORM 8-K
(a) Exhibits. The exhibits required by Item 601 of Regulation S-K are
listed below:
(27.1) Financial Data Schedule (for SEC use only).
(27.2) Restated Financial Data Schedule for 2/26/95 Form 10-Q.
(27.3) Restated Financial Data Schedule for 5/28/95 Form 10-K.
(27.4) Restated Financial Data Schedule for 8/27/95 Form 10-Q.
(27.5) Restated Financial Data Schedule for 11/26/95 Form 10-Q.
(27.6) Restated Financial Data Schedule for 2/25/96 Form 10-Q.
(27.7) Restated Financial Data Schedule for 5/26/96 Form 10-K.
(27.8) Restated Financial Data Schedule for 8/25/96 Form 10-Q.
(27.9) Restated Financial Data Schedule for 11/24/96 Form 10-Q.
(27.10) Restated Financial Data Schedule for 2/23/97 Form 10-Q.
(27.11) Restated Financial Data Schedule for 5/25/97 Form 10-K.
(27.12) Restated Financial Data Schedule for 8/24/97 Form 10-Q.
(27.13) Restated Financial Data Schedule for 11/23/97 Form 10-Q.
(b) Reports on Form 8-K: No reports on Form 8-K were filed during the
quarter ended February 22, 1998.
10 of 11
<PAGE> 11
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.
GoodMark Foods, Inc.
(Registrant)
Date: April 8, 1998 /s/ Ron E. Doggett
------------------------------------
Ron E. Doggett
Chairman and Chief Executive Officer
Date: April 8, 1998 /s/ Paul L. Brunswick
------------------------------------------
Paul L. Brunswick
Vice President and Chief Financial Officer
<TABLE> <S> <C>
<ARTICLE> 5
<LEGEND>
THIS SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM THE THIRD
FISCAL QUARTER ENDED FEBRUARY 22, 1998, FOR GOODMARK FOODS, INC. AND IS
QUALIFIED IN ITS ENTIRETY BY REFERENCE TO SUCH FINANCIAL SCHEDULES.
</LEGEND>
<MULTIPLIER> 1,000
<S> <C>
<PERIOD-TYPE> 9-MOS
<FISCAL-YEAR-END> MAY-31-1998
<PERIOD-START> MAY-26-1997
<PERIOD-END> FEB-22-1998
<CASH> 2,386
<SECURITIES> 0
<RECEIVABLES> 6,000
<ALLOWANCES> 0
<INVENTORY> 15,625
<CURRENT-ASSETS> 32,729
<PP&E> 49,311
<DEPRECIATION> 0
<TOTAL-ASSETS> 83,659
<CURRENT-LIABILITIES> 14,587
<BONDS> 15,000
0
0
<COMMON> 70
<OTHER-SE> 48,048
<TOTAL-LIABILITY-AND-EQUITY> 83,659
<SALES> 123,044
<TOTAL-REVENUES> 123,044
<CGS> 73,104
<TOTAL-COSTS> 73,104
<OTHER-EXPENSES> (110)
<LOSS-PROVISION> 92
<INTEREST-EXPENSE> 747
<INCOME-PRETAX> 10,683
<INCOME-TAX> 4,021
<INCOME-CONTINUING> 6,662
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 6,662
<EPS-PRIMARY> .94
<EPS-DILUTED> .91
</TABLE>
<TABLE> <S> <C>
<ARTICLE> 5
<LEGEND>
THIS SCHEDULE CONTAINS RESTATED SUMMARY FINANCIAL INFORMATION EXTRACTED FROM THE
THIRD QUARTER ENDED FEBRUARY 26, 1995 FOR GOODMARK FOODS, INC. AND IS QUALIFIED
IN ITS ENTIRETY BY REFERENCE TO SUCH FINANCIAL STATEMENTS.
</LEGEND>
<RESTATED>
<MULTIPLIER> 1,000
<S> <C>
<PERIOD-TYPE> 9-MOS
<FISCAL-YEAR-END> MAY-28-1995
<PERIOD-START> MAY-30-1994
<PERIOD-END> FEB-26-1995
<CASH> 0
<SECURITIES> 0
<RECEIVABLES> 9,350
<ALLOWANCES> 0
<INVENTORY> 15,319
<CURRENT-ASSETS> 31,604
<PP&E> 47,012
<DEPRECIATION> 0
<TOTAL-ASSETS> 81,812
<CURRENT-LIABILITIES> 16,620
<BONDS> 16,850
0
0
<COMMON> 77
<OTHER-SE> 44,597
<TOTAL-LIABILITY-AND-EQUITY> 81,812
<SALES> 129,050
<TOTAL-REVENUES> 129,050
<CGS> 79,026
<TOTAL-COSTS> 79,026
<OTHER-EXPENSES> 145
<LOSS-PROVISION> 94
<INTEREST-EXPENSE> 82
<INCOME-PRETAX> 12,624
<INCOME-TAX> 4,746
<INCOME-CONTINUING> 7,878
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 7,878
<EPS-PRIMARY> 1.02
<EPS-DILUTED> .98
</TABLE>
<TABLE> <S> <C>
<ARTICLE> 5
<LEGEND>
THIS SCHEDULE CONTAINS RESTATED SUMMARY FINANCIAL INFORMATION EXTRACTED FROM
FISCAL 1995 YEAR ENDED MAY 28, 1995 AND IS QUALIFIED IN ITS ENTIRETY BY
REFERENCE TO SUCH FINANCIAL STATEMENTS.
</LEGEND>
<RESTATED>
<MULTIPLIER> 1,000
<S> <C>
<PERIOD-TYPE> YEAR
<FISCAL-YEAR-END> MAY-28-1995
<PERIOD-START> MAY-30-1994
<PERIOD-END> MAY-28-1995
<CASH> 386
<SECURITIES> 0
<RECEIVABLES> 11,017
<ALLOWANCES> 0
<INVENTORY> 13,028
<CURRENT-ASSETS> 31,255
<PP&E> 52,512
<DEPRECIATION> 0
<TOTAL-ASSETS> 86,814
<CURRENT-LIABILITIES> 16,674
<BONDS> 20,150
0
0
<COMMON> 77
<OTHER-SE> 46,113
<TOTAL-LIABILITY-AND-EQUITY> 86,814
<SALES> 177,426
<TOTAL-REVENUES> 177,426
<CGS> 110,266
<TOTAL-COSTS> 110,266
<OTHER-EXPENSES> 68
<LOSS-PROVISION> 277
<INTEREST-EXPENSE> 131
<INCOME-PRETAX> 15,382
<INCOME-TAX> 5,784
<INCOME-CONTINUING> 9,598
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 9,598
<EPS-PRIMARY> 1.24
<EPS-DILUTED> 1.20
</TABLE>
<TABLE> <S> <C>
<ARTICLE> 5
<LEGEND>
THIS SCHEDULE CONTAINS RESTATED SUMMARY FINANCIAL INFORMATION EXTRACTED FROM THE
FIRST QUARTER ENDED AUGUST 27, 1995 FOR GOODMARK FOODS, INC. AND IS QUALIFIED IN
ITS ENTIRETY BY REFERENCE TO SUCH FINANCIAL STATEMENTS.
</LEGEND>
<RESTATED>
<MULTIPLIER> 1,000
<S> <C>
<PERIOD-TYPE> 3-MOS
<FISCAL-YEAR-END> MAY-26-1996
<PERIOD-START> MAY-29-1995
<PERIOD-END> AUG-27-1995
<CASH> 96
<SECURITIES> 0
<RECEIVABLES> 11,518
<ALLOWANCES> 0
<INVENTORY> 14,233
<CURRENT-ASSETS> 31,662
<PP&E> 52,817
<DEPRECIATION> 0
<TOTAL-ASSETS> 87,382
<CURRENT-LIABILITIES> 12,260
<BONDS> 21,650
0
0
<COMMON> 78
<OTHER-SE> 49,231
<TOTAL-LIABILITY-AND-EQUITY> 87,382
<SALES> 46,273
<TOTAL-REVENUES> 46,273
<CGS> 28,683
<TOTAL-COSTS> 28,683
<OTHER-EXPENSES> (60)
<LOSS-PROVISION> 33
<INTEREST-EXPENSE> 330
<INCOME-PRETAX> 4,264
<INCOME-TAX> 1,544
<INCOME-CONTINUING> 2,720
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 2,720
<EPS-PRIMARY> .35
<EPS-DILUTED> .34
</TABLE>
<TABLE> <S> <C>
<ARTICLE> 5
<LEGEND>
THIS SCHEDULE CONTAINS RESTATED SUMMARY FINANCIAL INFORMATION EXTRACTED FROM THE
SECOND QUARTER ENDED NOVEMBER 26, 1995 FOR GOODMARK FOODS, INC. AND IS QUALIFIED
IN ITS ENTIRETY BY REFERENCE TO SUCH FINANCIAL STATEMENTS.
</LEGEND>
<RESTATED>
<MULTIPLIER> 1,000
<S> <C>
<PERIOD-TYPE> 6-MOS
<FISCAL-YEAR-END> MAY-26-1996
<PERIOD-START> MAY-29-1995
<PERIOD-END> NOV-26-1995
<CASH> 1,916
<SECURITIES> 0
<RECEIVABLES> 7,067
<ALLOWANCES> 0
<INVENTORY> 14,624
<CURRENT-ASSETS> 31,023
<PP&E> 52,825
<DEPRECIATION> 0
<TOTAL-ASSETS> 86,842
<CURRENT-LIABILITIES> 11,629
<BONDS> 20,250
0
0
<COMMON> 78
<OTHER-SE> 50,560
<TOTAL-LIABILITY-AND-EQUITY> 86,842
<SALES> 89,811
<TOTAL-REVENUES> 89,811
<CGS> 57,250
<TOTAL-COSTS> 57,250
<OTHER-EXPENSES> 45
<LOSS-PROVISION> 65
<INTEREST-EXPENSE> 638
<INCOME-PRETAX> 6,399
<INCOME-TAX> 2,406
<INCOME-CONTINUING> 3,993
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 3,993
<EPS-PRIMARY> .51
<EPS-DILUTED> .49
</TABLE>
<TABLE> <S> <C>
<ARTICLE> 5
<LEGEND>
THIS SCHEDULE CONTAINS RESTATED SUMMARY FINANCIAL INFORMATION EXTRACTED FROM THE
THIRD QUARTER ENDED FEBRUARY 25, 1996 FOR GOODMARK FOODS, INC. AND IS QUALIFIED
IN ITS ENTIRETY BY REFERENCE TO SUCH FINANCIAL STATEMENTS.
</LEGEND>
<RESTATED>
<MULTIPLIER> 1,000
<S> <C>
<PERIOD-TYPE> 9-MOS
<FISCAL-YEAR-END> MAY-26-1996
<PERIOD-START> MAY-29-1995
<PERIOD-END> FEB-25-1996
<CASH> 598
<SECURITIES> 0
<RECEIVABLES> 9,070
<ALLOWANCES> 0
<INVENTORY> 14,600
<CURRENT-ASSETS> 30,946
<PP&E> 52,830
<DEPRECIATION> 0
<TOTAL-ASSETS> 86,657
<CURRENT-LIABILITIES> 12,208
<BONDS> 20,050
0
0
<COMMON> 77
<OTHER-SE> 50,501
<TOTAL-LIABILITY-AND-EQUITY> 87,658
<SALES> 132,548
<TOTAL-REVENUES> 132,548
<CGS> 84,147
<TOTAL-COSTS> 84,147
<OTHER-EXPENSES> 50
<LOSS-PROVISION> 75
<INTEREST-EXPENSE> 891
<INCOME-PRETAX> 8,964
<INCOME-TAX> 3,371
<INCOME-CONTINUING> 5,593
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 5,593
<EPS-PRIMARY> .72
<EPS-DILUTED> .69
</TABLE>
<TABLE> <S> <C>
<ARTICLE> 5
<LEGEND>
THIS SCHEDULE CONTAINS RESTATED SUMMARY FINANCIAL INFORMATION EXTRACTED FROM
FISCAL 1996 YEAR ENDED MAY 26, 1996 AND IS QUALIFIED IN ITS ENTIRETY BY
REFERENCE TO SUCH FINANCIAL STATEMENTS.
</LEGEND>
<RESTATED>
<MULTIPLIER> 1,000
<S> <C>
<PERIOD-TYPE> 12-MOS
<FISCAL-YEAR-END> MAY-26-1996
<PERIOD-START> MAY-29-1995
<PERIOD-END> MAY-26-1996
<CASH> 858
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<PP&E> 53,936
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76
0
<COMMON> 0
<OTHER-SE> 48,732
<TOTAL-LIABILITY-AND-EQUITY> 85,056
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<TOTAL-REVENUES> 177,915
<CGS> 111,994
<TOTAL-COSTS> 111,994
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<INCOME-TAX> 4,036
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<EPS-PRIMARY> .86
<EPS-DILUTED> .83
</TABLE>
<TABLE> <S> <C>
<ARTICLE> 5
<LEGEND>
THIS SCHEDULE CONTAINS RESTATED SUMMARY FINANCIAL INFORMATION EXTRACTED FROM THE
FIRST QUARTER ENDED AUGUST 25, 1996 FOR GOODMARK FOODS, INC.
</LEGEND>
<RESTATED>
<MULTIPLIER> 1,000
<S> <C>
<PERIOD-TYPE> 3-MOS
<FISCAL-YEAR-END> MAY-25-1997
<PERIOD-START> MAY-27-1996
<PERIOD-END> AUG-25-1996
<CASH> 22
<SECURITIES> 0
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<CURRENT-LIABILITIES> 12,414
<BONDS> 17,000
76
0
<COMMON> 0
<OTHER-SE> 50,520
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<TOTAL-REVENUES> 46,382
<CGS> 28,103
<TOTAL-COSTS> 28,103
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<EPS-PRIMARY> .27
<EPS-DILUTED> .26
</TABLE>
<TABLE> <S> <C>
<ARTICLE> 5
<LEGEND>
THIS SCHEDULE CONTAINS RESTATED SUMMARY FINANCIAL INFORMATION EXTRACTED FROM THE
SECOND QUARTER ENDED NOVEMBER 24, 1996 FOR GOODMARK FOODS, INC. AND IS QUALIFIED
IN ITS ENTIRETY BY REFERENCE TO SUCH FINANCIAL STATEMENTS.
</LEGEND>
<RESTATED>
<MULTIPLIER> 1,000
<S> <C>
<PERIOD-TYPE> 6-MOS
<FISCAL-YEAR-END> MAY-25-1997
<PERIOD-START> MAY-27-1996
<PERIOD-END> NOV-24-1996
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<CURRENT-LIABILITIES> 13,100
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0
0
<COMMON> 75
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<EPS-PRIMARY> .53
<EPS-DILUTED> .51
</TABLE>
<TABLE> <S> <C>
<ARTICLE> 5
<LEGEND>
THIS SCHEDULE CONTAINS RESTATED SUMMARY FINANCIAL INFORMATION EXTRACTED FROM THE
THIRD QUARTER ENDED FEBRUARY 23, 1997 FOR GOODMARK FOODS, INC. AND IS QUALIFIED
IN ITS ENTIRETY BY REFERENCE TO SUCH FINANCIAL STATEMENTS.
</LEGEND>
<RESTATED>
<MULTIPLIER> 1,000
<S> <C>
<PERIOD-TYPE> 9-MOS
<FISCAL-YEAR-END> MAY-25-1997
<PERIOD-START> MAY-27-1996
<PERIOD-END> FEB-23-1997
<CASH> 1,617
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<PP&E> 51,583
<DEPRECIATION> 0
<TOTAL-ASSETS> 87,671
<CURRENT-LIABILITIES> 12,571
<BONDS> 21,500
0
0
<COMMON> 74
<OTHER-SE> 48,619
<TOTAL-LIABILITY-AND-EQUITY> 87,671
<SALES> 134,512
<TOTAL-REVENUES> 134,512
<CGS> 83,703
<TOTAL-COSTS> 83,703
<OTHER-EXPENSES> (371)
<LOSS-PROVISION> 98
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<EPS-PRIMARY> .60
<EPS-DILUTED> .58
</TABLE>
<TABLE> <S> <C>
<ARTICLE> 5
<LEGEND>
THIS SCHEDULE CONTAINS RESTATED SUMMARY FINANCIAL INFORMATION EXTRACTED FROM THE
FISCAL YEAR ENDED MAY 25, 1997 FOR GOODMARK FOODS, INC. AND IS QUALIFIED IN ITS
ENTIRETY BY REFERENCE TO SUCH FINANCIAL STATEMENTS.
</LEGEND>
<RESTATED>
<MULTIPLIER> 1,000
<S> <C>
<PERIOD-TYPE> YEAR
<FISCAL-YEAR-END> MAY-25-1997
<PERIOD-START> MAY-26-1996
<PERIOD-END> MAY-25-1997
<CASH> 1,443
<SECURITIES> 0
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<PP&E> 50,926
<DEPRECIATION> 0
<TOTAL-ASSETS> 84,705
<CURRENT-LIABILITIES> 13,721
<BONDS> 18,250
0
0
<COMMON> 72
<OTHER-SE> 46,719
<TOTAL-LIABILITY-AND-EQUITY> 84,705
<SALES> 161,034
<TOTAL-REVENUES> 161,034
<CGS> 96,937
<TOTAL-COSTS> 96,937
<OTHER-EXPENSES> 154
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<INCOME-PRETAX> 9,508
<INCOME-TAX> 3,577
<INCOME-CONTINUING> 5,931
<DISCONTINUED> (437)
<EXTRAORDINARY> 0
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<NET-INCOME> 5,494
<EPS-PRIMARY> .73
<EPS-DILUTED> .71
</TABLE>
<TABLE> <S> <C>
<ARTICLE> 5
<LEGEND>
THIS SCHEDULE CONTAINS RESTATED SUMMARY FINANCIAL INFORMATION EXTRACTED FROM THE
FIRST QUARTER ENDED AUGUST 24, 1997 FOR GOODMARK FOODS, INC.
</LEGEND>
<RESTATED>
<MULTIPLIER> 1,000
<S> <C>
<PERIOD-TYPE> 3-MOS
<FISCAL-YEAR-END> MAY-31-1998
<PERIOD-START> MAY-26-1997
<PERIOD-END> AUG-24-1997
<CASH> 738
<SECURITIES> 0
<RECEIVABLES> 8,463
<ALLOWANCES> 0
<INVENTORY> 13,168
<CURRENT-ASSETS> 31,135
<PP&E> 50,182
<DEPRECIATION> 0
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<CURRENT-LIABILITIES> 13,697
<BONDS> 15,000
0
0
<COMMON> 72
<OTHER-SE> 48,432
<TOTAL-LIABILITY-AND-EQUITY> 83,152
<SALES> 42,296
<TOTAL-REVENUES> 42,296
<CGS> 25,149
<TOTAL-COSTS> 25,149
<OTHER-EXPENSES> (14)
<LOSS-PROVISION> 32
<INTEREST-EXPENSE> 254
<INCOME-PRETAX> 3,351
<INCOME-TAX> 1,260
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<EPS-PRIMARY> .29
<EPS-DILUTED> .28
</TABLE>
<TABLE> <S> <C>
<ARTICLE> 5
<LEGEND>
THIS SCHEDULE CONTAINS RESTATED SUMMARY FINANCIAL INFORMATION EXTRACTED FROM THE
SECOND QUARTER ENDED NOVEMBER 23, 1997 FOR GOODMARK FOODS, INC. AND IS QUALIFIED
IN ITS ENTIRETY BY REFERENCE TO SUCH FINANCIAL STATEMENTS.
</LEGEND>
<RESTATED>
<MULTIPLIER> 1,000
<S> <C>
<PERIOD-TYPE> 6-MOS
<FISCAL-YEAR-END> MAY-31-1998
<PERIOD-START> MAY-26-1997
<PERIOD-END> NOV-23-1997
<CASH> 500
<SECURITIES> 0
<RECEIVABLES> 6,574
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<INVENTORY> 14,400
<CURRENT-ASSETS> 29,280
<PP&E> 49,787
<DEPRECIATION> 0
<TOTAL-ASSETS> 80,785
<CURRENT-LIABILITIES> 13,311
<BONDS> 15,692
0
0
<COMMON> 70
<OTHER-SE> 45,950
<TOTAL-LIABILITY-AND-EQUITY> 80,785
<SALES> 84,749
<TOTAL-REVENUES> 84,749
<CGS> 50,617
<TOTAL-COSTS> 50,617
<OTHER-EXPENSES> (81)
<LOSS-PROVISION> 65
<INTEREST-EXPENSE> 245
<INCOME-PRETAX> 7,198
<INCOME-TAX> 2,707
<INCOME-CONTINUING> 4,491
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<NET-INCOME> 4,491
<EPS-PRIMARY> .63
<EPS-DILUTED> .61
</TABLE>
