Back to GetFilings.com
FORM 10-Q
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
Quarterly Report Under Section 13 or 15(d)
of the Securities Exchange Act of 1934
QUARTER ENDED: SEPTEMBER 26, 2004 COMMISSION FILE NUMBER: 0-1830
BOWL AMERICA INCORPORATED
(Exact name of registrant as specified in its charter)
MARYLAND 54-0646173
(State of Incorporation) (I.R.S.Employer Identification No)
6446 Edsall Road, Alexandria, Virginia 22312
(Address of principal executive offices)(Zip Code)
(703) 941-6300
(Registrant's telephone number including area code)
Indicate by a 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 whether the registrant is an accelerated filer (as
defined in Exchange Act Rule 12 b-2). Yes __ No X
Indicate the number of shares outstanding of each of the issuer's
classes of common stock, as of the last practicable date.
Shares Outstanding at
October 24, 2004
Class A Common Stock,
$.10 par value 3,669,311
Class B Common Stock,
$.10 par value 1,468,462
PART I FINANCIAL INFORMATION
ITEM 1. FINANCIAL STATEMENTS
BOWL AMERICA INCORPORATED AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF EARNINGS
(Unaudited)
Thirteen Weeks Ended
September 26, September 28,
2004 2003
Operating Revenues:
Bowling and other $4,222,753 $4,325,269
Food, beverage and merchandise sales 1,677,331 1,819,906
_________ _________
5,900,084 6,145,175
Operating Expenses:
Employee compensation and benefits 2,962,691 3,181,590
Cost of bowling and other services 1,475,184 1,520,434
Cost of food, beverage and merchandise sales 523,564 634,035
Depreciation and amortization 400,633 394,930
General and administrative 203,271 181,144
_________ _________
5,565,343 5,912,133
Net gain from sale of building - 2,168,117
_________ _________
Operating Income 334,741 2,401,159
Interest and dividend income 104,003 95,981
_________ _________
Earnings before provision for income taxes 438,744 2,497,140
Provision for Income Taxes 147,900 923,200
_________ _________
Net Earnings $ 290,844 $1,573,940
========= =========
Earnings per share-basic and diluted $ .06 $.31
Weighted average shares outstanding 5,137,773 5,138,574
Dividends paid $ 693,600 $ 642,323
Per share, dividends paid, Class A $.135 $.125
Per share, dividends paid, Class B $.135 $.125
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE EARNINGS
(Unaudited)
Net Earnings $ 290,844 $1,573,940
Other comprehensive earnings, net of tax
Unrealized gain (loss) on available-for
-sale securities 271,921 (232,793)
_________ ________
Comprehensive earnings $ 562,765 $1,341,147
========= ========
The operating results for the thirteen (13) week period ending September 26,
2004 are not necessarily indicative of results to be expected for the year.
See notes to condensed consolidated financial information.
BOWL AMERICA INCORPORATED AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
(Unaudited)
As of
September 26, June 27,
2004 2004
ASSETS
CURRENT ASSETS:
Cash and cash equivalents $ 2,429,718 $ 1,320,643
Short-term investments 10,528,321 11,681,729
Inventories 575,120 583,466
Prepaid expenses and other 651,072 595,460
__________ __________
TOTAL CURRENT ASSETS 14,184,231 14,181,298
LAND, BUILDINGS & EQUIPMENT
Net of accumulated depreciation of
$28,810,079 and $28,394,203 21,601,482 21,762,919
OTHER ASSETS:
Marketable equity securities 4,436,990 4,041,161
Cash surrender value-life insurance 469,817 467,603
Other 77,080 126,600
__________ __________
TOTAL ASSETS $40,769,600 $40,579,581
========== ==========
LIABILITIES AND STOCKHOLDERS' EQUITY
CURRENT LIABILITIES:
Accounts payable $ 696,889 $ 805,812
Accrued expenses 733,681 891,289
Dividends payable 693,600 693,600
Other current liabilities 760,754 334,317
Income taxes payable 181,872 179,855
Current deferred income taxes 148,675 148,675
__________ __________
TOTAL CURRENT LIABILITIES 3,215,471 3,053,548
LONG-TERM DEFERRED COMPENSATION 74,278 74,278
NONCURRENT DEFERRED INCOME TAXES 2,714,674 2,555,174
__________ __________
TOTAL LIABILITIES 6,004,423 5,683,000
__________ __________
COMMITMENTS AND CONTINGENCIES (Note 3)
STOCKHOLDERS' EQUITY
Preferred stock, par value $10 a share:
Authorized and unissued, 2,000,000 shares - -
Common stock, par value $.10 a share:
Authorized, 10,000,000 shares
Class A issued and outstanding
3,669,311 shares 366,932 366,932
Class B issued and outstanding
1,468,462 shares 146,846 146,846
Additional paid-in capital 7,479,072 7,479,072
Accumulated other comprehensive earnings-
Unrealized gain on available-for-sale
securities, net of tax 2,220,270 1,948,918
Retained earnings 24,552,057 24,954,813
__________ __________
TOTAL STOCKHOLDERS'EQUITY 34,765,177 34,896,581
__________ __________
TOTAL LIABILITIES AND STOCKHOLDERS'EQUITY $40,769,600 $40,579,581
========== ==========
See notes to condensed consolidated financial statements.
BOWL AMERICA INCORPORATED AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited)
Thirteen Weeks Ended
September 26, September 28,
2004 2003
CASH FLOWS FROM OPERATING ACTIVITIES
Net earnings $ 290,844 $1,573,940
Adjustments to reconcile net earnings
to net cash provided by
operating activities:
Depreciation and amortization 400,633 394,930
Changes in assets and liabilities
Decrease (increase) in inventories 8,346 (164,462)
(Increase) decrease in prepaid & other (55,612) 171,057
Net gain from sale of building - (2,168,117)
Decrease in income taxes refundable - 443,788
Increase in income taxes payable 2,017 461,935
Decrease in other long-term assets 47,306 59,750
Decrease in accounts payable (108,923) (55,767)
Decrease increase in accrued expenses (157,608) (184,922)
Increase in other current liabilities 426,437 521,727
_________ _________
Net cash provided by
operating activities 853,440 1,053,859
_________ _________
Cash flows from investing activities
Expenditures for land, buildings and equip (239,196) (212,951)
Net sales & maturities of short-term
investments 1,188,431 1,047,937
_________ _________
Net cash provided by investing activities 949,235 834,986
_________ _________
Cash flows from financing activities
Payment of cash dividends (693,600) (642,323)
_________ _________
Net cash used in financing activities (693,600) (642,323)
_________ _________
Net Increase in Cash and Equivalents 1,109,075 1,246,522
_________ _________
Cash and Equivalents, Beginning of quarter 1,320,643 1,503,313
_________ _________
Cash and Equivalents, End of quarter $2,429,718 $2,749,835
========= =========
Supplemental Disclosures of Cash Flow Information
Cash Paid During the Quarter for
Income taxes $150,000 $ 17,500
See notes to condensed consolidated financial information.
BOWL AMERICA INCORPORATED AND SUBSIDIARIES
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
For the Thirteen Weeks Ended
September 26, 2004
(Unaudited)
1. Basis for Presentation
The accompanying unaudited condensed consolidated financial statements of
Bowl America Incorporated and subsidiaries (the "Company"), have been prepared
pursuant to the rules and regulations of the Securities and Exchange Commission.
The condensed consolidated balance sheet as of June 27, 2004 has been derived
from the Company's June 27, 2004 audited financial statements. Certain
information and note disclosures normally included in the annual financial
statements, prepared in accordance with accounting principles generally
accepted in the United States of America, have been condensed or omitted
pursuant to those rules and regulations, although the Company believes that
the disclosures made are adequate to make the information presented not
misleading.
In the opinion of management, the accompanying unaudited condensed
consolidated financial statements reflect all adjustments and reclassifications
(all of which are of a normal, recurring nature) that are necessary for the
fair presentation for the periods presented. It is suggested that these
condensed consolidated financial statements be read in conjunction with the
consolidated financial statements and notes thereto included in the Company's
latest annual report to the Securities and Exchange Commission on Form 10-K
for the year ended June 27, 2004.
2. Marketable Equity Securities
Marketable equity securities, available for sale, are carried at fair
value in accordance with the provisions of SFAS No. 115.
The telecommunications stocks included in the portfolio as of September 26,
2004 were:
16,835 shares of AT&T Wireless
2,209 shares of Agere
3,946 shares of Alltel
669 shares of Avaya
27,572 shares of Bell South
8,028 shares of Lucent Technologies
9,969 shares of Qwest Communications
45,580 shares of SBC
40,000 shares of SprintFon
18,784 shares of Verizon
13,560 shares of Vodafone/AirTouch
3. Commitments and Contingencies
Prior to the beginning of fiscal year 2005, the Company had placed
orders totaling approximately $860,000 for the purchase of bowling pins and
plastic lane overlays. Approximately one-third of the pin order was received
in the first quarter of fiscal year 2005 and the remainder is expected to be
delivered during the second quarter. Installation of the lanes began in late
September and is expected to be completed in the second quarter.
In October 2004, the Company signed a contract for approximately $770,000
for the site preparation relating to the building of a bowling center in
Henrico County, Virginia. The funds will be paid out as work is completed and
all work is expected to be complete in approximately 35 weeks.
4. Reclassifications
Certain previous year amounts have been reclassified to conform with
current year presentation.
ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND
RESULTS OF OPERATIONS
LIQUIDITY AND CAPITAL RESOURCES
Short-term investments, consisting mainly of U.S. Treasury Bills and Notes, and
cash totaled $12,958,000 at the end of the first quarter of fiscal 2005 or
$44,000 lower than at the beginning of the quarter.
In the three-month period ended September 26, 2004, the Company expended
$211,000 for purchases of equipment to modernize facilities and amusement games
and approximately $42,000 for items relating to the construction of our new
bowling center in Henrico County, Virginia. The table below includes purchase
obligations for the replacement of the remaining wooden bowling lanes for
approximately $600,000, bowling pin purchases of approximately $185,000 and
site preparation and improvements for the new location of approximately
$770,000, of which approximately one-third will be paid for by the seller from
funds escrowed at the time of purchase of the ground. The lane replacements
began in late September and were completed in October and all remaining pin
deliveries will occur during the second quarter.
Construction of the new 40-lane facility, estimated to cost $5 million, began
in the second quarter and is expected to be completed in early fiscal 2006.
The Company is actively seeking property for additional locations. Cash and
cash flow are sufficient to finance all currently contemplated purchases and
construction. The Company has also maintained its fiscal year end 2004 position
in marketable equity securities, primarily telecommunications stocks, as a
further source of expansion capital.
These marketable securities are carried at their fair value on the last day of
the quarter. For the three-month period ended September 26, 2004, the market
value increased by $396,000 to approximately $4,437,000.
- ------------------------------------------------------------------------------
Contractual Total Less Than 1-3 3-5 More Than
obligations 1 Year Years Years 5 Years
______________________________________________________________________________
Operating lease
obligations $1,796,652 $ 283,721 $567,442 $567,442 $378,000
Purchase
obligations $1,555,000 $1,555,000
______________________________________________________________________________
Total $3,351,652 $1,838,721 $567,442 $567,442 $378,000
==============================================================================
While no factors calling for a change in the dividend rate are apparent, the
Board of Directors decides the amount and timing of any dividend at its
quarterly meeting based on its appraisal of the state of the business and its
estimate of future opportunities.
On September 23, 2004 the Board of Directors declared a cash dividend of $.135
per share on its Class A and Class B stock to holders of record on October 20,
2004, payable November 10, 2004.
In November 2004, subsequent to the end of the current year first quarter,
Cingular Wireless completed its acquisition of AT&T Wireless. The Company
received a cash payment of $252,525 from the Cingular Wireless for the 16,835
shares of AT&T Wireless held by the Company. The transaction will be recognized
by the Company in the second quarter of the current fiscal year. AT&T Wireless
shareholders will not become shareholders of Cingular Wireless as a result of
the merger.
RESULTS OF OPERATIONS
Eighteen centers were in operation in both the current year and prior year
first quarters. The Company ceased business at its Silver Spring location,
operating with negative cash flow, in the fourth quarter of fiscal year 2003.
The sale of the building closed in August 2003. Two leased locations were
closed in fiscal year 2002 at the end of their leases. The changes in the
number of operating centers affected all income, expense and comparisons for
the prior year periods presented in this report.
In last year's first quarter net proceeds of $2,168,117 from the sale of the
Silver Spring building were included in operating income and expenses of
approximately $108,400 attributable to the sale were included in operating
expenses, primarily in the employee compensation and benefits category.
Net earnings were $.06 per share for the thirteen-week period ended September
26, 2004 versus net earnings of $.31 per share for the thirteen-week period
ended September 28, 2003 when the sale of the building, after taxes, accounted
for $.25 per share of the earnings.
Operating revenues decreased 4% in the current year quarter versus a slight
increase for the prior year three-month period. During the quarter ended
September 26, 2004, hurricanes Charlie, Frances and Jeanne impacted business
at our Florida locations. Last year Hurricane Isabel caused closings at almost
all of the Maryland and Virginia locations in mid-September. In this year's
quarter a higher average game rate helped to offset the lower number of games
bowled which was partially a result of one fewer week of league bowling as
Labor Day, the usual start of the fall league season, fell late. The fourth
quarter will benefit from the additional week of league linage as well as a
fourteenth week for accounting purposes.
Food, beverage and merchandise sales were down 8% in the current three-month
period due to decreased traffic and down 1% in the comparable prior year period.
The Gaithersburg full-service restaurant ceased operation in late September
2003, but a customer base was retained as some customers chose to be served
in the typical snack bar setting. Although this change has reduced sales, it
has increased profitability at that location.
Operating expenses excluding depreciation and amortization were down 6% in the
current three-month period and up 2% in the comparable period last year.
Overall, items related to the Silver Spring sale included in operating expenses
were responsible for the increase in the prior year period. Advertising
expenses increased 21% in the current year period and 12% in the prior year
quarter. Employee compensation and benefits were down 7% in the current
quarter and up 1% in the prior year quarter.
Cost of bowling and other services in the quarter ended September 26, 2004
decreased $45,000 or 3% from the prior year's comparable quarter. Of those
costs, maintenance and repairs expense decreased 21% in the current quarter as
the changeover to all plastic lanes has eliminated the cost of resurfacing.
In addition there were fewer building repairs in the current quarter compared
to the prior year quarter. Supplies and services expenses increased 2% for
the current three-month period after a decrease of 17% in last year's three-
month period. Utility costs were up 4% in the current quarter and down 2% in
the prior year period. Rent expense was flat in the current three month period
and down 2% in the prior year period. Insurance expense excluding health
insurance was down 2% in the current year quarter versus a decrease of 10% in
last year's comparable quarter.
Depreciation and amortization expense increased 1% in the current year period
and decreased 10% in the comparable period last year. The comparison decrease
in the prior year was due to operating one fewer location in fiscal 2004 than
fiscal 2003.
CRITICAL ACCOUNTING POLICIES
We have identified accounting for marketable investment securities under SFAS
115 ("Accounting for Certain Investments in Debt and Equity Securities") as a
critical accounting policy due to the significance of the amounts included in
our balance sheet under the captions of Short-term investments and Marketable
equity securities. The Company exercises judgment in determining the classifi-
cation of its investment securities as available-for-sale and in determining
their fair value. The Company records these investments at their fair value
with the unrealized gain or loss recorded in accumulated other comprehensive
income, a component of stockholders' equity, net of deferred taxes.
Additionally, from time to time the Company must assess whether write-downs are
necessary for other than temporary declines in value.
ITEM 3. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK
Interest Rate Risk. Our short-term investments and certain cash equivalents
are subject to interest rate risk. We manage this risk by maintaining an
investment portfolio of available-for-sale instruments with high credit quality
and relatively short average maturities. The fair value of marketable debt
securities held was $10,528,000 and $8,175,000 at September 26, 2004 and
September 28, 2003, respectively. The fair value of certain fixed rate debt
securities will change depending on movements in interest rates. Declines in
interest rates will affect our interest income. Based on our portfolio of debt
securities at September 26, 2004, a 10% decline in the average yield would have
no material impact on annual interest income.
ITEM 4. CONTROLS AND PROCEDURES
The Company's Chief Executive Officer and Chief Financial Officer have concluded
that the Company's disclosure controls and procedures are effective based on
their evaluation of such controls and procedures as of September 26, 2004.
There was no change in the Company's internal control over financial reporting
identified in connection with the evaluation that occurred during the quarter
ended September 26, 2004, that materially affected, or is reasonably likely to
materially affect, the Company's internal control over financial reporting.
BOWL AMERICA INCORPORATED AND SUBSIDIARIES
S.E.C. FORM 10-Q
September 26, 2004
PART II - OTHER INFORMATION
Item 6 - Exhibits
(a) Exhibits
20 Press release issued November 10, 2004 (furnished herewith)
31.1 Certification of Chief Executive Officer Pursuant to Section 302 of the
Sarbanes-Oxley Act
31.2 Certification of Chief Financial Officer Pursuant to Section 302 of the
Sarbanes-Oxley Act
32 Written Statement of the Chief Executive Officer and Chief Financial
Officer Pursuant to 18 U.S.C. 1350
Pursuant to the requirements of the Securities Act of 1934, the Registrant
has duly caused this report to be signed on its behalf by the undersigned
thereunto duly authorized.
Bowl America Incorporated
(Registrant)
Date: November 9, 2004 By: Leslie H. Goldberg
Leslie H. Goldberg, President
Date: November 9, 2004 By: Cheryl A. Dragoo
Cheryl A. Dragoo, Controller
EX-31.1
Exhibit 31.1 to Form 10-Q
Certification of Chief Executive Officer
Pursuant to Section 302 of the Sarbanes-Oxley Act and Rule 13a-14(a) Or
15d-14(a) under the Securities Exchange Act of 1934
I, Leslie H. Goldberg, certify that:
1. I have reviewed this Quarterly Report on Form 10-Q of Bowl America
Incorporated;
2. Based on my knowledge, this report does not contain any untrue statement
of a material fact or omit to state a material fact necessary to make the
statements made, in light of the circumstances under which such statements
were made, not misleading with respect to the period covered by this
report;
3. Based on my knowledge, the financial statements, and other financial
information included in this report, fairly present in all material
respects the financial condition, results of operations and cash flows of
the registrant as of, and for, the periods presented in this report;
4. The registrant's other certifying officer and I are responsible for
establishing and maintaining disclosure controls and procedures (as defined
in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over
financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f))
for the registrant and have:
a) Designed such disclosure controls and procedures, or caused such
disclosure controls and procedures to be designed under our supervision, to
ensure that material information relating to the registrant, including its
consolidated subsidiaries, is made known to us by others within those
entities, particularly during the period in which this report is being
prepared;
b) Designed such internal control over financial reporting, or caused
such internal control over financial reporting to be designed under our
supervision, to provide reasonable assurance regarding the reliability of
financial reporting and the preparation of financial statements for external
purposes in accordance with generally accepted accounting principles;
c) Evaluated the effectiveness of the registrant's disclosure controls
and procedures and presented in this report our conclusions about the
effectiveness of the disclosure controls and procedures, as of the end of
the period covered by this report based on such evaluation; and
d) Disclosed in this report any change in the registrant's internal
control over financial reporting that occurred during the registrant's most
recent fiscal quarter that has materially affected, or is reasonably likely
to materially affect, the registrant's internal control over financial
reporting: and
5. The registrant's other certifying officer and I have disclosed, based on
our most recent evaluation of internal control over financial reporting, to
the registrant's auditors and the audit committee of registrant's board of
directors (or persons performing the equivalent functions):
a) All significant deficiencies and material weaknesses in the design or
operation of internal controls over financial reporting which are
reasonably likely to adversely affect the registrant's ability to record,
process, summarize and report financial information; and
b) Any fraud, whether or not material, that involves management or other
employees who have a significant role in the registrant's internal control
over financial reporting.
Date: November 9, 2004 Leslie H Goldberg
Chief Executive Officer
Exhibit 31.2
Exhibit 31.2 to Form 10-Q
Certification of Chief Financial Officer
Pursuant to Section 302 of the Sarbanes-Oxley Act and Rule 13a-14(a) Or
15d-14(a) under the Securities Exchange Act of 1934
I, Cheryl A. Dragoo, certify that:
1. I have reviewed this Quarterly Report on Form 10-Q of Bowl America
Incorporated;
2. Based on my knowledge, this report does not contain any untrue statement
of a material fact or omit to state a material fact necessary to make the
statements made, in light of the circumstances under which such statements
were made, not misleading with respect to the period covered by this
report;
3. Based on my knowledge, the financial statements, and other financial
information included in this report, fairly present in all material
respects the financial condition, results of operations and cash flows of
the registrant as of, and for, the periods presented in this report;
4. The registrant's other certifying officer and I are responsible for
establishing and maintaining disclosure controls and procedures (as defined
in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over
financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f))
for the registrant and have:
a) Designed such disclosure controls and procedures, or caused such
disclosure controls and procedures to be designed under our supervision, to
ensure that material information relating to the registrant, including its
consolidated subsidiaries, is made known to us by others within those
entities, particularly during the period in which this report is being
prepared;
b) Designed such internal control over financial reporting, or caused
such internal control over financial reporting to be designed under our
supervision, to provide reasonable assurance regarding the reliability of
financial reporting and the preparation of financial statements for external
purposes in accordance with generally accepted accounting principles;
c) Evaluated the effectiveness of the registrant's disclosure controls
and procedures and presented in this report our conclusions about the
effectiveness of the disclosure controls and procedures, as of the end of
the period covered by this report based on such evaluation; and
d) Disclosed in this report any change in the registrant's internal
control over financial reporting that occurred during the registrant's most
recent fiscal quarter that has materially affected, or is reasonably likely
to materially affect, the registrant's internal control over financial
reporting: and
5. The registrant's other certifying officer and I have disclosed, based on
our most recent evaluation of internal control over financial reporting, to
the registrant's auditors and the audit committee of registrant's board of
directors (or persons performing the equivalent functions):
a) All significant deficiencies and material weaknesses in the design or
operation of internal controls over financial reporting which are
reasonably likely to adversely affect the registrant's ability to record,
process, summarize and report financial information; and
b) Any fraud, whether or not material, that involves management or other
employees who have a significant role in the registrant's internal control
over financial reporting.
Date: November 9, 2004 Cheryl A. Dragoo
Chief Financial Officer
Exhibit 32
Exhibit 32 to Form 10-Q
Written Statement of the Chief Executive Officer and Chief Financial
Officer
Pursuant to 18 U.S.C. 1350
Solely for the purposes of complying with 18 U.S.C. 1350, as adopted
pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, we, the
undersigned Chief Executive Officer and Chief Financial Officer of Bowl
America Incorporated (the "Company"), hereby certify, based on our
knowledge, that the Quarterly Report on Form 10-Q of the Company for the
period ended September 26, 2004, (the "Report") fully complies with the
requirements of Section 13(a) of the Securities Act of 1934 and that
information contained in the Report fairly presents, in all material
respects, the financial condition and results of operations of the Company.
Leslie H. Goldberg
Chief Executive Officer
Cheryl A. Dragoo
Chief Financial Officer
Date: November 9, 2004
Exhibit 20
Exhibit 20 to Form 10-Q
Press Release Issued November 10, 2004
For Immediate Release November 10, 2004
Bowl America Reports First Quarter Earnings
Bowl America Incorporated today reported per share earnings of $.06 for
its first quarter. Last year comparable period earnings of $.31
included $.25 from the proceeds of the sale of property that housed a
money-losing bowling center. Without this transaction, earnings per share
would have been $.06.
The quarter included one fewer week of league bowling, however the week
will be made up in the fourth quarter. Open play games weakened in
September, a trend that continued into the second quarter. The Company is
pleased with the initial response to its event planning website
www.bowlingparty.com for corporate and special occasion bookings.
Second quarter and fiscal year earnings will benefit from a cash payment
of approximately $252,000 by Cingular Wireless for the acquisition of
AT&T Wireless shares that were held by the Company in its expansion
reserve.
Bowl America operates eighteen bowling centers and site work has started
on one additional center. Its stock trades on the American Stock Exchange
with the symbol BWLA. The Company's SEC Form 10-Q is available at
www.bowlamericainc.com.
BOWL AMERICA INCORPORATED
Results of Operations
(unaudited)
Thirteen weeks ended
September 26, September 28,
2004 2003
Revenues
Bowling and other $4,222,753 $4,325,269
Food, beverage & merchandise sales 1,677,331 1,819,906
_________ _________
5,900,084 6,145,175
Operating expenses
excluding depreciation and amortization 5,164,710 5,517,203
Depreciation and amortization 400,633 394,930
Net gain on sale of building - 2,168,117
Interest & dividend 104,003 95,981
Earnings before taxes 438,744 2,497,140
Net Earnings $ 290,844 $1,573,940
Weighted average shares outstanding 5,137,773 5,138,574
EARNINGS PER SHARE $.06 $.31
SUMMARY OF FINANCIAL POSITION
(unaudited)
Dollars in Thousands
9/26/04 9/28/03
ASSETS
Total current assets including cash and
short-term investments of $12,958 & $11,210 $14,184 $14,643
Property and investments 26,586 24,199
______ ______
TOTAL ASSETS $40,770 $38,842
LIABILITIES AND STOCKHOLDERS'EQUITY
Total current liabilities $ 3,215 $ 3,454
Other liabilities 2,790 1,736
Stockholders' equity 34,765 33,652
______ ______
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY $40,770 $38,842