PART I.

FINANCIAL INFORMATION

 

		April 30,			January 31,
		2005			2005
		(Unaudited)
Assets
Current assets:
Cash and cash equivalents		$	2,018		$	2,043
Accounts receivable			27			9
Accounts receivable, related parties			52			43
Inventories			3,803			3,507
Prepaid expenses			273			364
Notes receivable, current maturities			3			3
Total current assets			6,176			5,969
Property and equipment, net			13,134			13,265
Intangible assets, net			215			225
Interest receivable			29			21
Investment in real estate			439			439
Notes receivable			166			166
Total assets		$	20,159		$	20,085
Liabilities and Stockholders’ Equity
Current liabilities:
Accounts payable		$	1,363			1,083
Current installments of long-term debt			582			582
Short-term borrowing			210			210
Accrued liabilities			426			481
Deferred revenue			184			31
Total current liabilities			2,765			2,387
Deferred income taxes			870			877
Deferred revenue, long term			—			166
Long-term debt, less current installments			5,125			5,262
Total liabilities			8,760			8,692
Stockholders’ equity:
Preferred stock, $0.001 par value; 1,000,000 shares authorized, none issued or outstanding at April 30, 2005 and January 31, 2005			—			—
Common stock, $.001 par value; 10,000,000 shares authorized, 4,583,348 issued and outstanding at April 30, 2005 and January 31, 2005			5			5
Additional paid in capital			9,775			9,775
Retained earnings			1,619			1,613
Total stockholders’ equity			11,399			11,393
Total liabilities and stockholders’ equity		$	20,159		$	20,085

 

 

 

		Three Months Ended
		April 30,			April 30,
		2005			2004
		(Unaudited)			(Unaudited)
Gross sales		$	6,194		$	5,543
Less discounts on sales			120			118
Net sales			6,074			5,425
Cost of goods sold			4,040			3,547
Gross profit			2,034			1,878
General and administrative expenses			(1,764	)		(1,693	)
Depreciation and amortization			(226	)		(171	)
Operating income			44			14
Non-operating income (expense):
Interest income			17			14
Interest expense			(92	)		(46	)
Rental income			45			46
Total non-operating income (expense)			(30	)		14
Income before income taxes			14			28
Income tax expense			8			13
Net income		$	6		$	15
Earnings per share:
Weighted average common shares outstanding			4,583,348			4,583,348
Basic and diluted		$	0 .001		$	0 .003

 

		For the Three Months Ended
		April 30,			April 30,
		2005			2004
		(Unaudited)			(Unaudited)
Cash flows from operating activities:
Net income		$	6		$	15
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization			226			171
Amortization of loan fee			9			—
Deferred income taxes			(7	)		14
Changes in operating assets and liabilities, net			(20	)		158
Net cash provided by operating activities			214			358
Cash flows from investing activities:
Purchases of property and equipment, net			(94	)		(454	)
Accrued interest receivable			(8	)		(11	)
Notes receivable, net			—			30
Net cash used in investing activities			(102	)		(435	)
Cash flows from financing activities:
Payments on long-term debt			(137	)		(193	)
Net cash used in financing activities			(137	)		(193	)
Net decrease in cash and cash equivalents			(25	)		(270	)
Cash and cash equivalents at beginning of period			2,043			2,240
Cash and cash equivalents at end of period		$	2,018		$	1,970

1.

The condensed financial statements of Bowlin Travel Centers, Inc. (the “Company”) as of and for the three months ended April 30, 2005 and 2004 are unaudited and reflect all adjustments (consisting only of normal recurring adjustments) which are, in the opinion of management, necessary for a fair presentation of the financial position and operating results for the interim periods. The interim financial statements should be read in conjunction with the financial statements and notes, together with management’s discussion and analysis of financial condition and results of operations, contained in the Company’s annual report on Form 10-K for the fiscal year ended January 31, 2005. Results of operations for interim periods are not necessarily indicative of results that may be expected for the year as a whole.

2.	Subsequent event. In May of 2005, the Company received a balloon payment of approximately $405,000, for a note receivable that includes a deferred gain of approximately $206,000, which will be received and recognized as non-operating income.

 

 

Dated:  June 9, 2005		/s/  Michael L. Bowlin
		Michael L. Bowlin, Chairman of the Board, President and Chief Executive Officer