Exhibit 20 to Form 10-Q
Press release issued February 12, 2013
| For Immediate Release | February 12, 2013 |
BOWL AMERICA REPORTS INCREASED SECOND QUARTER EARNINGS
Bowl America Incorporated today reported that fiscal year 2013 second quarter earnings increased to $.09 per share from $.07 per share in the prior year period. The improvement resulted from reduced operating costs, primarily utilities and insurance. Earnings for the current and prior year six-month periods were $.04 and $.02 per share, respectively. Last year’s second quarter included the high-traffic period of Christmas through New Year’s Day. The New Year’s holiday will fall in this year’s third quarter.
The Company has a long history of building reserves and carrying no debt. In December 2012, after reviewing those reserves and possible changes in the federal tax rate on dividends, the Company paid a special dividend of $.50 per share. The funding for this dividend was from Retained Earnings on which the Company has already paid income taxes ranging from 34% to as high as 51%. Additionally, the third quarter regular dividend of $.165, usually paid in February, was paid in December 2012.
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Bowl America operates 19 bowling centers and its Class A Common Stock trades on the NYSE MKT Exchange with the symbol BWLA. A more detailed explanation of results is available in the Company’s S.E.C. Form 10-Q filing, available at the Company’s web site www.bowlamericainc.com.
BOWL AMERICA INCORPORATED
Results of Operations
(unaudited)
| | | Thirteen weeks ended | | | Twenty-six weeks ended | |
| | | December 30, | | | January 1, | | | December 30, | | | January 1, | |
| | | 2012 | | | 2012 | | | 2012 | | | 2012 | |
| Revenues | | | | | | | | | | | | |
| Bowling and other | | $ | 4,368,238 | | | $ | 4,503,640 | | | $ | 8,042,718 | | | $ | 8,401,703 | |
| Food, beverage & merchandise sales | | | 1,836,735 | | | | 1,926,499 | | | | 3,349,499 | | | | 3,524,037 | |
| | | | 6,204,973 | | | | 6,430,139 | | | | 11,392,217 | | | | 11,925,740 | |
| | | | | | | | | | | | | | | | | |
Operating expenses excluding depreciation and amortization | | | 5,236,336 | | | | 5,592,063 | | | | 10,535,105 | | | | 11,205,677 | |
| | | | | | | | | | | | | | | | | |
| Depreciation and amortization | | | 386,728 | | | | 398,634 | | | | 777,115 | | | | 822,401 | |
| | | | | | | | | | | | | | | | | |
| Interest & dividend income | | | 119,065 | | | | 145,595 | | | | 250,284 | | | | 264,032 | |
| | | | | | | | | | | | | | | | | |
| Earnings before taxes | | | 700,974 | | | | 585,037 | | | | 330,281 | | | | 161,694 | |
| | | | | | | | | | | | | | | | | |
| Net Earnings | | $ | 455,674 | | | $ | 380,267 | | | $ | 214,681 | | | $ | 105,094 | |
| | | | | | | | | | | | | | | | | |
| Comprehensive earnings (loss) | | $ | 115,301 | | | $ | 509,086 | | | $ | 75,573 | | | $ | (10,592 | ) |
| | | | | | | | | | | | | | | | | |
| Weighted average shares outstanding | | | 5,151,471 | | | | 5,151,471 | | | | 5,151,471 | | | | 5,151,471 | |
| | | | | | | | | | | | | | | | | |
| EARNINGS PER SHARE | | | .09 | | | | .07 | | | | .04 | | | | .02 | |
SUMMARY OF FINANCIAL POSITION
(unaudited)
Dollars in Thousands
| | | 12/30/12 | | | 01/01/12 | |
| ASSETS | | | | | | |
| | | | | | | |
Total current assets including cash and short-term investments of $2,576 & $7,232 | | $ | 3,963 | | | $ | 8,603 | |
| Property and investments | | | 31,197 | | | | 31,361 | |
| TOTAL ASSETS | | $ | 35,160 | | | $ | 39,964 | |
| | | | | | | | | |
| LIABILITIES AND STOCKHOLDERS' EQUITY | | | | | | | | |
| | | | | | | | | |
| Total current liabilities | | $ | 2,990 | | | $ | 3,847 | |
| Other liabilities | | | 2,685 | | | | 2,475 | |
| Stockholders' equity | | | 29,485 | | | | 33,642 | |
| TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY | | $ | 35,160 | | | $ | 39,964 | |
