<PAGE> 1
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 10-Q
- ---------- QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934
OR
X TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE
- ---------- SECURITIES EXCHANGE ACT OF 1934
For the Transition Period from April 1, 1996 to June 2, 1996
Commission File Number --0-17896
HANOVER FOODS CORPORATION
(Exact name of Registrant as specified in its charter)
Commonwealth of Pennsylvania 23-0670710
(Jurisdiction of Incorporation) (I.R.S. Employer
Identification No.)
1486 York Road, P.O. Box 334, Hanover, PA 17331
(Address of principal executive offices) (Zip Code)
Registrant's telephone number: 717-632-6000
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
for the past 90 days.
Yes X No
------- -------
Indicate the number of shares outstanding of issuer's classes of common stock
as of the latest practicable date.
<TABLE>
<CAPTION>
Class Outstanding at June 2, 1996
----- ---------------------------
<S> <C>
Class A Common Stock, $25 par value 294,824 shares
Class B Common Stock, $25 par value 427,350 shares
</TABLE>
<PAGE> 2
HANOVER FOODS CORPORATION AND SUBSIDIARIES
FORM 10-Q
For the Nine Weeks Ended June 2, 1996
<TABLE>
<CAPTION>
Index
Page
<S> <C>
Part I - Financial Information
Item 1 -- Financial Statements:
Condensed Consolidated Balance Sheets June 2, 1996 (Unaudited)
and March 31, 1996 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3
Condensed Consolidated Statements of Operations (Unaudited),
Nine weeks ended June 2, 1996 and June 4, 1995 . . . . . . . . . . . . . . . . . . . . . 5
Condensed Consolidated Statements of Stockholders' Equity periods ended
June 2, 1996 (Unaudited) and March 31, 1996 . . . . . . . . . . . . . . . . . . . . . . . 6
Condensed Consolidated Statements of Cash Flows (Unaudited),
Nine weeks ended June 2, 1996 and June 4, 1995 . . . . . . . . . . . . . . . . . . . . . 7
Notes to Condensed Consolidated Financial Statements (Unaudited) . . . . . . . . . . . . . . . 8
Item 2 -- Management's Discussion and Analysis of Financial Condition
and Results of Operations . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12
Part II -- Other Information
Item 6 -- Exhibits and Reports on Form 8-K . . . . . . . . . . . . . . . . . . . . . . . . . . . 14
</TABLE>
<PAGE> 3
PART I -- FINANCIAL INFORMATION
Item 1. Financial Statements
HANOVER FOODS CORPORATION AND SUBSIDIARIES
Condensed Consolidated Balance Sheets
(Unaudited)
<TABLE>
<CAPTION>
==============================================================================
June 2, March 31,
ASSETS 1996 1996
- ------------------------------------------------------------------------------
<S> <C> <C>
Current assets:
Cash and short-term cash investments $ 1,112,000 914,000
Accounts and notes receivable, net 17,249,000 25,216,000
Accounts receivable from related parties,
net 61,000 18,000
Inventories 47,067,000 47,157,000
Prepaid corporate income taxes 581,000 541,000
Prepaid expenses 1,796,000 1,294,000
Deferred income taxes 885,000 885,000
- ------------------------------------------------------------------------------
Total current assets 68,751,000 76,025,000
- ------------------------------------------------------------------------------
Property, plant, and equipment, at cost:
Land and buildings 32,115,000 31,847,000
Machinery and equipment 77,399,000 77,210,000
Leasehold improvements 349,000 349,000
- ------------------------------------------------------------------------------
109,863,000 109,406,000
Less accumulated depreciation and
amortization 61,273,000 60,262,000
- ------------------------------------------------------------------------------
48,590,000 49,144,000
Construction in progress 176,000 61,000
- ------------------------------------------------------------------------------
48,766,000 49,205,000
- ------------------------------------------------------------------------------
Other assets and deferred charges:
Intangible assets, less accumulated
amortization of
$2,004,000 and $2,002,000 456,000 458,000
Other assets 2,407,000 2,680,000
- ------------------------------------------------------------------------------
$ 120,380,000 128,368,000
==============================================================================
</TABLE>
See accompanying notes to condensed consolidated financial statements.
3
<PAGE> 4
PART I -- FINANCIAL INFORMATION
Item 1. Financial Statements, Continued
HANOVER FOODS CORPORATION AND SUBSIDIARIES
Condensed Consolidated Balance Sheets, Continued
(Unaudited)
<TABLE>
<CAPTION>
========================================================================================
June 2, March 31,
LIABILITIES AND STOCKHOLDERS' EQUITY 1996 1996
- ----------------------------------------------------------------------------------------
<S> <C> <C>
Current liabilities:
Accounts payable $ 23,916,000 24,792,000
Notes payable -- banks 24,097,000 29,421,000
Accrued expenses 4,052,000 3,966,000
Current maturities of long-term debt 1,999,000 1,999,000
Current maturities of long-term debt to related
party 500,000 500,000
Current maturities of capital lease obligations 152,000 210,000
Income taxes payable 110,000 93,000
- ----------------------------------------------------------------------------------------
Total current liabilities 54,826,000 60,981,000
Long-term debt, less current maturities 18,078,000 18,078,000
Long-term debt to related party, less current
maturities 375,000 375,000
Other liabilities 805,000 736,000
Deferred income taxes 5,170,000 5,689,000
- ----------------------------------------------------------------------------------------
Total liabilities 79,254,000 85,859,000
- ----------------------------------------------------------------------------------------
Stockholders' equity:
8-1/4% cumulative convertible preferred, $25 par
value; issuable in series, 120,000 shares
authorized; 31,536 shares issued, 15,044 shares
outstanding 788,000 788,000
Common stock, Class A, non-voting, $25 par value;
800,000 shares authorized, 349,210 shares issued,
294,824 shares at June 2, 1996 and 295,649
shares at March 31, 1996 outstanding 8,729,000 8,729,000
Common stock, Class B, voting, $25 par value;
880,000 shares authorized, 493,123 shares
issued, 427,350 shares at June 2, 1996 and
427,459 shares at March 31, 1996 outstanding 12,328,000 12,328,000
Capital paid in excess of par value 1,623,000 1,623,000
Retained earnings 25,688,000 27,026,000
Treasury stock, at cost (7,755,000) (7,708,000)
Other (275,000) (277,000)
- ----------------------------------------------------------------------------------------
41,126,000 42,509,000
- ----------------------------------------------------------------------------------------
$ 120,380,000 128,368,000
========================================================================================
</TABLE>
See accompanying notes to condensed consolidated financial statements.
4
<PAGE> 5
PART I -- FINANCIAL INFORMATION
Item 1. Financial Statements, Continued
HANOVER FOODS CORPORATION AND SUBSIDIARIES
Condensed Consolidated Statements of Operations
(Unaudited)
==========================================================================
<TABLE>
<CAPTION>
Nine weeks ended
----------------------------
June 2, June 4,
1996 1995
- --------------------------------------------------------------------------
<S> <C> <C>
Net sales $ 34,569,000 36,795,000
Cost of goods sold 28,805,000 29,087,000
- --------------------------------------------------------------------------
Gross profit 5,764,000 7,708,000
Selling expenses 5,465,000 7,089,000
Administrative expenses 1,433,000 1,889,000
- --------------------------------------------------------------------------
Operating profit (loss) (1,134,000) (1,270,000)
Interest expense 596,000 584,000
Other (income) expense, net (66,000) (191,000)
- --------------------------------------------------------------------------
Earnings (loss) before income taxes (1,664,000) (1,663,000)
Income taxes (533,000) (539,000)
- --------------------------------------------------------------------------
Net earnings (loss) (1,131,000) (1,124,000)
Dividends on preferred stock 8,000 -
- --------------------------------------------------------------------------
Net earnings (loss) applicable to common stock $ (1,139,000) (1,124,000)
==========================================================================
Earnings per share:
Net earnings (loss), primary $ (1.58) (1.53)
==========================================================================
Dividends per share, common $ 0.275 -
==========================================================================
Average shares outstanding $ 722,667 733,755
==========================================================================
</TABLE>
See accompanying notes to condensed consolidated financial statements.
5
<PAGE> 6
PART I -- FINANCIAL INFORMATION
Item 1. Financial Statements, Continued
HANOVER FOODS CORPORATION AND SUBSIDIARIES
Condensed Consolidated Statements of Stockholders' Equity
Periods ended June 2, 1996 and March 31, 1996
(Unaudited)
<TABLE>
<CAPTION>
===============================================================================================================
Cumulative convertible
preferred stock Common stock
Series A and Series B Class A
---------------------- -------------------------
Total
stockholders'
equity Shares Amount Shares Amount
- ---------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
Balance, April 2, 1995 $ 43,920,000 31,816 $ 795,000 349,090 $ 8,726,000
Net earnings for the year 420,000 - - - -
Cash dividends per share:
Preferred stock (31,000) - - - -
Common stock (800,000) - - - -
Redemption of common stock
(Class A 5,789 shares and
Class B 5,148 shares) (760,000) - - - -
Conversion of preferred for
Class A common - (280) (7,000) 120 3,000
Unrealized gain on investments 111,000 - - - -
Minimum pension liability adjustment
(net of taxes of $235,000) (351,000) - - - -
- ---------------------------------------------------------------------------------------------------------------
Balance, March 31, 1996 42,509,000 31,536 788,000 349,210 8,729,000
Net loss for the period (1,131,000) - - - -
Cash dividends per share:
Preferred stock (8,000) - - - -
Common stock (199,000) - - - -
Redemption of common stock
(Class A 825 shares and
Class B 109 shares) (47,000) - - - -
Unrealized gain on investments 2,000 - - - -
- ---------------------------------------------------------------------------------------------------------------
Balance, June 2, 1996 $ 41,126,000 31,536 $ 788,000 349,210 $ 8,729,000
===============================================================================================================
</TABLE>
<TABLE>
<CAPTION>
===============================================================================================================
Common stock
Class B
-------------------------------- Capital
paid in
excess
of par Retained
Shares Amount value earnings
- ---------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Balance, April 2, 1995 $ 493,123 $ 12,328,000 1,619,000 27,437,000
Net earnings for the year - - - 420,000
Cash dividends per share:
Preferred stock - - - (31,000)
Common stock - - - (800,000)
Redemption of common stock
(Class A 5,789 shares and
Class B 5,148 shares) - - - -
Conversion of preferred for
Class A common - - 4,000 -
Unrealized gain on investments - - - -
Minimum pension liability adjustment
(net of taxes of $235,000) - - - -
- ---------------------------------------------------------------------------------------------------------------
Balance, March 31, 1996 493,123 12,328,000 1,623,000 27,026,000
Net loss for the period - - - (1,131,000)
Cash dividends per share:
Preferred stock - - - (8,000)
Common stock - - - (199,000)
Redemption of common stock
(Class A 825 shares and
Class B 109 shares) - - - -
Unrealized gain on investments - - - -
- ---------------------------------------------------------------------------------------------------------------
Balance, June 2, 1996 $ 493,123 $ 12,328,000 1,623,000 25,688,000
===============================================================================================================
</TABLE>
<TABLE>
<CAPTION>
======================================================================================
Treasury stock
--------------------------
Shares Amount Other
- --------------------------------------------------------------------------------------
<S> <C> <C> <C>
Balance, April 2, 1995 124,738 $ (6,948,000) (37,000)
Net earnings for the year - - -
Cash dividends per share:
Preferred stock - - -
Common stock - - -
Redemption of common stock
(Class A 5,789 shares and
Class B 5,148 shares) 10,937 (760,000) -
Conversion of preferred for
Class A common - - -
Unrealized gain on investments - - 111,000
Minimum pension liability adjustment
(net of taxes of $235,000) - - (351,000)
- --------------------------------------------------------------------------------------
Balance, March 31, 1996 135,675 (7,708,000) (277,000)
Net loss for the period - - -
Cash dividends per share:
Preferred stock - - -
Common stock - - -
Redemption of common stock
(Class A 825 shares and -
Class B 109 shares) 934 (47,000) -
Unrealized gain on investments - - 2,000
- --------------------------------------------------------------------------------------
Balance, June 2, 1996 136,609 $ (7,755,000) (275,000)
======================================================================================
</TABLE>
See accompanying notes to condensed consolidated financial statements.
6
<PAGE> 7
PART I -- FINANCIAL INFORMATION
Item 1. Financial Statements, Continued
HANOVER FOODS CORPORATION AND SUBSIDIARIES
Condensed Consolidated Statements of Cash Flows
(Unaudited)
===============================================================================
<TABLE>
<CAPTION>
Nine weeks ended
------------------------------
June 2, June 4,
1996 1995
- -------------------------------------------------------------------------------
<S> <C> <C>
Increase (decrease) in cash and cash equivalents
Operating activities:
Net earnings (loss) $ (1,131,000) (1,124,000)
Adjustments to reconcile net earnings (loss)
to net cash used in operating activities:
Depreciation and amortization 1,013,000 929,000
Deferred income taxes (519,000) (569,000)
Change in assets and liabilities:
Accounts receivable 7,924,000 5,977,000
Inventory 90,000 (529,000)
Prepaid items (542,000) (2,332,000)
Accounts payable and accrued expenses (790,000) 312,000
Income taxes payable 17,000 16,000
Other liabilities 69,000 34,000
- -------------------------------------------------------------------------------
Net cash provided by operating activities 6,131,000 2,714,000
- -------------------------------------------------------------------------------
Investing activities:
(Increase) decrease in other non-current assets 275,000 (236,000)
Acquisitions of property, plant, and equipment (572,000) (1,416,000)
- -------------------------------------------------------------------------------
Net cash used in investing activities (297,000) (1,652,000)
- -------------------------------------------------------------------------------
Financing activities:
Increase (decrease) in notes payable (5,324,000) (625,000)
Payments on long-term debt and capital leases (58,000) (179,000)
Payment of dividends (207,000) -
Redemption of common stock (47,000) (26,000)
- -------------------------------------------------------------------------------
Net cash used in financing activities (5,636,000) (830,000)
- -------------------------------------------------------------------------------
Net increase in cash and cash equivalents 198,000 232,000
Cash and cash equivalents, beginning of period 914,000 649,000
- -------------------------------------------------------------------------------
Cash and cash equivalents, end of period $ 1,112,000 881,000
===============================================================================
</TABLE>
See accompanying notes to condensed consolidated financial statements.
7
<PAGE> 8
PART I -- FINANCIAL INFORMATION
Item 1. Financial Statements, Continued
HANOVER FOODS CORPORATION AND SUBSIDIARIES
Notes to Condensed Consolidated Financial Statements
June 2, 1996 and March 31, 1996
(Unaudited)
================================================================================
(1) BASIS OF PRESENTATION
The condensed consolidated financial statements of the Registrant
included herein have been prepared, without audit, pursuant to the
rules and regulations of the Securities and Exchange Commission.
Although, certain information normally included in financial
statements prepared in accordance with generally accepted accounting
principles has been omitted, the Registrant believes that the
disclosures are adequate to make the information presented not
misleading.
Effective June 2, 1996, the Corporation changed its fiscal year to end
at the close of operations on the Sunday nearest to May 31.
Accordingly, these financial statements reflect activity for the nine
week periods ended June 2, 1996 and June 4, 1995.
It is suggested that these condensed consolidated financial statements
be read in conjunction with the consolidated financial statements and
the notes thereto included in Form 10-K for its fiscal year ended
March 31, 1996.
The condensed consolidated financial statements included herein
reflect all adjustments (consisting only of normal recurring accruals)
which, in the opinion of management, are necessary to present a fair
statement of the results for the interim period.
The results for interim periods are not necessarily indicative of
trends or results to be expected for a full year.
(2) SHORT-TERM BORROWINGS
The Corporation and its subsidiaries maintain short-term unsecured
lines of credit with various banks providing credit availability
amounting to $55 million of which $24,097,000 was borrowed at June 2,
1996. The average cost of funds during the period ended June 2, 1996
was 6.1%.
(Continued)
3
<PAGE> 9
PART I -- FINANCIAL INFORMATION
Item 1. Financial Statements, Continued
HANOVER FOODS CORPORATION AND SUBSIDIARIES
Notes to Condensed Consolidated Financial Statements
(Unaudited)
================================================================================
(3) LONG-TERM DEBT
The long-term debt of the Corporation and its subsidiaries consist of:
<TABLE>
<CAPTION>
June 2, 1996 March 31, 1996
- ----------------------------------------------------------------------------------------------
<S> <C> <C>
8.74% - 9.24%unsecured senior notes payable to an
insurance company, due fiscal years ending 1995-2007 $ 19,643,000 19,643,000
Installment obligation payable to a municipality, due
fiscal years ending 1995-1997 140,000 140,000
Installment obligation payable to a related party, due in
equal annual installments in fiscal years ending
1996-2000 interest at prime rate (8.25% at June 2, 1996) 294,000 294,000
6.33% installment obligation payable to a related party,
due fiscal years ending 1996-1998 875,000 875,000
- ----------------------------------------------------------------------------------------------
20,952,000 20,952,000
Less current maturities 2,499,000 2,499,000
- ----------------------------------------------------------------------------------------------
$ 18,453,000 18,453,000
==============================================================================================
</TABLE>
The term loan agreements with the insurance company, the
agreements for seasonal borrowing with financial institutions, and
installment agreements with industrial development authorities contain
various restrictive provisions including those relating to mergers and
acquisitions, additional borrowing, guarantees of obligations, lease
commitments, limitations on declaration and payment of dividends,
repurchase of the Corporation's stock, and the maintenance of working
capital and certain financial ratios. The Corporation is in
compliance with the restrictive provisions in the agreements except
for the Interest Charge Coverage Ratio for which the Corporation has
received waivers to this provision through the current compliance
period from the respective lenders. The interest rate on the
unsecured senior notes payable has been increased from 8.74% to 9.24%
from December 31, 1995 to July 10, 1996. Management and the senior
unsecured lender are currently working towards an amendment to modify
the Interest Charge Coverage Ratio through September 1, 1997 and
management expects to finalize this amendment before the end of the
next compliance period.
(Continued)
9
<PAGE> 10
PART I -- FINANCIAL INFORMATION
Item 1. Financial Statements, Continued
HANOVER FOODS CORPORATION AND SUBSIDIARIES
Notes to Condensed Consolidated Financial Statements
(Unaudited)
================================================================================
(4) RELATED PARTY TRANSACTIONS
The Corporation and its subsidiaries, in the normal course of
business, purchase and sell goods and services to related parties.
The Corporation believes that the cost of such purchases and sales and
sales are competitive with alternative sources of supply and markets.
<TABLE>
<CAPTION>
Nine weeks ended
----------------------------------
June 2, 1996 June 4, 1995
- ----------------------------------------------------------------------------
<S> <C> <C>
Revenues:
Park 100 Foods, Inc. $ 118,000 -
Corporate charges:
Snyder's of Hanover, Inc. 29,000 29,000
Expenditures:
The Cannery Press, Inc. - 68,000
Patti & John's, Inc. 4,000 4,000
ARWCO Corporation 24,000 31,000
Warehime Enterprises, Incorporated 1,000 69,000
John A. and Patricia M. Warehime 7,000 7,000
James G. Sturgill 15,000 19,000
George E. Lawrence - 8,000
============================================================================
</TABLE>
The respective June 2, 1996 and March 31, 1996 account balances with related
companies are as follows:
<TABLE>
<CAPTION>
June 2, March 31,
1996 1996
- ------------------------------------------------------------------------
<S> <C> <C>
Accounts receivable:
Snyder's of Hanover, Inc. $ 11,000 24,000
Patti & John's, Inc. 4,000 3,000
Park 100 Foods, Inc. 56,000 -
Accounts payable:
The Cannery Press, Inc. 4,000 4,000
Warehime Enterprises, Inc. - 5,000
Patti & John's, Inc. 6,000 -
Notes payable:
Warehime Enterprises, Inc. 875,000 875,000
Cyril T. Noel 294,000 294,000
========================================================================
</TABLE>
(Continued)
10
<PAGE> 11
PART I -- FINANCIAL INFORMATION
Item 1. Financial Statements, Continued
HANOVER FOODS CORPORATION AND SUBSIDIARIES
Notes to Condensed Consolidated Financial Statements
(Unaudited)
================================================================================
(5) CONTINGENCIES
LEGAL MATTERS
It is the opinion of management and counsel that various claims and
litigation in which the Corporation is currently involved will not
materially affect the Corporation's financial position, results of
operations or liquidity.
MANUFACTURER COUPONS
The Corporation is contingently liable for unredeemed manufacturer
coupons on various products at June 2, 1996 which will expire during
1996.
================================================================================
11
<PAGE> 12
PART I -- FINANCIAL INFORMATION
Item 2. Management's Discussion and Analysis of
Financial Condition and Results of Operations
HANOVER FOODS CORPORATION AND SUBSIDIARIES
================================================================================
The following comments should be read in conjunction with Management's
Discussion and Analysis of Financial Conditions and Results of Operations
appearing in the Corporation's 1995-96 Annual Report to Shareholders.
RESULTS OF OPERATIONS
NET SALES
Consolidated net sales were $34.6 million for the nine week period
ended June 2, 1996. This represents a decrease of 6.0% over the nine
week period ended June 4, 1995 consolidated net sales of $36.8
million. The decrease of $2.2 million was primarily due to decreased
canned and frozen retail sales offset by increases in private label
sales and was consistent with the Corporation's business plan.
COST OF GOODS SOLD
Cost of goods sold were $28.8 million or 83.3% of consolidated net
sales in the nine week period ended June 2, 1996 and $29.1 million, or
79.1%, of consolidated net sales for the corresponding period in 1995.
The increase in cost of goods sold as a percentage of net sales
resulted primarily from a decrease in the average selling prices per
case of product in the nine week period ended June 2, 1996 compared to
1995 due to continued intense competition in retail sales.
SELLING EXPENSES
Selling expenses were $5.5 million or 15.8% of consolidated net sales
for the nine week period ended June 2, 1996 versus $7.1 million or
19.3% of consolidated net sales during the corresponding period in
1995. The decrease in selling expenses as a percentage of net sales
reflects lower expenses related to promotional programs, advertising,
and customer allowances in the nine week period ended June 2, 1996
compared to 1995.
ADMINISTRATIVE EXPENSES
Administrative expenses as a percentage of consolidated net sales were
4.1% for the nine week period ended June 2, 1996 compared to 5.1% for
the corresponding period of 1995. This decrease is attributed to
reductions in personnel related costs.
INTEREST EXPENSE
Interest expense was $596,000 for the nine week period ended June 2,
1996 as compared to $584,000 for the same period in 1995. The
increase in interest is mainly due to higher average borrowings during
the current period as compared to the prior period.
(Continued)
12
<PAGE> 13
PART I -- FINANCIAL INFORMATION
Item 2. Management's Discussion and Analysis of
Financial Condition and Results of Operations
HANOVER FOODS CORPORATION AND SUBSIDIARIES
================================================================================
LIQUIDITY AND FINANCIAL RESOURCES
Management's discussion of the Corporation's financial condition
should be read in conjunction with the condensed consolidated
statements of cash flow appearing on page 7 of this report.
OPERATING ACTIVITIES
Cash provided by operating activities for the nine week period ended
June 2, 1996 was $6.1 million as compared to $2.7 million during the
same period of 1995. The combination of decreased accounts receivable
and inventory levels, offset by prepaid expenses incurred for the
production season and the decrease of trade accounts payable and
accrued expenses generated increased cash flow. By comparison the
same period of 1995 consumed more cash for increased inventory levels
and payables, which was offset by a smaller reduction of receivables.
INVESTING ACTIVITIES
During the nine week period ended June 2, 1996 the Corporation
consumed approximately $600,000 in funds for capital projects.
This compares to $1.4 million consumed during the same time
frame last year for capital projects.
FINANCING ACTIVITIES
The decrease in notes payable of approximately $5.3 million during the
nine week period ended June 2, 1996 represents payments made against
available seasonal lines of credit from financial institutions from
cash generated from customer accounts receivable. Available funds
were also used to redeem 825 shares of Class A -- common stock and 109
shares of Class B E common stock at a cost of $47,000.
The Corporation has available seasonal lines-of-credit from financial
institutions in the amount of $55 million. Additional borrowings are
permitted within prescribed parameters in existing debt agreements.
Management believes these credit facilities provide adequate cash
availability for seasonal operating requirements.
13
<PAGE> 14
PART II -- OTHER INFORMATION
HANOVER FOODS CORPORATION AND SUBSIDIARIES
<TABLE>
<CAPTION>
Item:
<S> <C>
1 Legal Proceedings
There have been no material developments in previously reported
litigation in which the Corporation is currently involved.
(See Form 10-K filed by Corporation on July 2, 1996).
2-5 None
6 -- Exhibits and Reports on Form 8-K.
(a) Exhibits
11 -- Computation of Earnings Per Share
27 -- Financial Data Schedule
(b) Reports on Form 8-K:
On May 4, 1996, the Corporation filed a report on Form 8-K
reporting a change in the Corporation's fiscal year.
</TABLE>
14
<PAGE> 15
SIGNATURES
Pursuant to the requirements of the Securities and Exchange Act of 1934, the
Registrant has duly caused this Report to be signed on its behalf by the
undersigned thereunto duly authorized.
Date: July 17, 1996
HANOVER FOODS CORPORATION
BY /s/ GARY T. KNISELY
--------------------------
Gary T. Knisely
Executive Vice President
BY /s/ JACK A. BROWN
--------------------------
Jack A. Brown, Treasurer
15
<PAGE> 1
Exhibit 11
HANOVER FOODS CORPORATION AND SUBSIDIARIES
Computation of Earnings Per Share
<TABLE>
<CAPTION>
=========================================================================================
Nine weeks ended
----------------------------------------
June 2, June 4,
1996 1995
- -----------------------------------------------------------------------------------------
<S> <C> <C>
PRIMARY
Earnings:
Net earnings (loss) $ (1,131,000) (1,124,000)
Preferred stock dividends (8,000) -
- -----------------------------------------------------------------------------------------
Net earnings (loss) applicable to
common stock $ (1,139,000) (1,124,000)
=========================================================================================
Shares
Weighted average number of shares outstanding 722,667 733,755
=========================================================================================
Net earnings (loss) per share - primary $ (1.58) (1.53)
=========================================================================================
</TABLE>
<TABLE> <S> <C>
<ARTICLE> 5
<MULTIPLIER> 1,000
<S> <C>
<PERIOD-TYPE> 2-MOS
<FISCAL-YEAR-END> JUN-02-1996
<PERIOD-START> APR-01-1996
<PERIOD-END> JUN-02-1996
<CASH> 1,112
<SECURITIES> 0
<RECEIVABLES> 17,249
<ALLOWANCES> 0
<INVENTORY> 47,067
<CURRENT-ASSETS> 68,751
<PP&E> 109,863
<DEPRECIATION> 61,273
<TOTAL-ASSETS> 120,380
<CURRENT-LIABILITIES> 54,826
<BONDS> 20,952
0
788
<COMMON> 21,057
<OTHER-SE> 19,281
<TOTAL-LIABILITY-AND-EQUITY> 120,380
<SALES> 34,569
<TOTAL-REVENUES> 34,569
<CGS> 28,805
<TOTAL-COSTS> 28,805
<OTHER-EXPENSES> 6,832
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 596
<INCOME-PRETAX> (1,664)
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