Bowl America (BWL.A) 10-Q 10 Nov 15 2016 Q1 Quarterly report Financial data

Document And Entity Information

Document And Entity Information - shares	3 Months Ended
	Sep. 27, 2015	Nov. 10, 2015
Common Class B [Member]
Entity Common Stock, Shares Outstanding (in shares)		1,414,517
Common Class A [Member]
Entity Common Stock, Shares Outstanding (in shares)		3,746,454
Entity Registrant Name	BOWL AMERICA INC
Entity Central Index Key	13,573
Trading Symbol	bwla
Current Fiscal Year End Date	--07-03
Entity Filer Category	Smaller Reporting Company
Entity Current Reporting Status	Yes
Entity Voluntary Filers	No
Entity Well-known Seasoned Issuer	No
Document Type	10-Q
Document Period End Date	Sep. 27, 2015
Document Fiscal Year Focus	2,016
Document Fiscal Period Focus	Q1
Amendment Flag	false

Condensed Consolidated Statemen

Condensed Consolidated Statements of Earnings (Unaudited) - USD ($)	3 Months Ended
	Sep. 27, 2015	Sep. 28, 2014
Common Class A [Member]
Operating Expenses:
Per share, dividends paid (in dollars per share)	$ 0.17	$ 0.17
Common Class B [Member]
Operating Expenses:
Per share, dividends paid (in dollars per share)	$ 0.17	$ 0.17
Bowling and other	$ 3,474,033	$ 3,301,343
Food, beverage and merchandise sales	1,446,130	1,328,001
Total Operating Revenue	4,920,163	4,629,344
Employee compensation and benefits	2,746,545	2,753,227
Cost of bowling and other services	1,510,612	1,528,706
Cost of food, beverage and merchandise sales	469,342	435,190
Depreciation and amortization	336,187	325,392
General and administrative	231,781	217,353
Total Operating Expenses	5,294,467	5,259,868
Operating Loss	(374,304)	(630,524)
Interest, dividend and other income	146,528	146,307
Loss before provision for income tax benefit	(227,776)	(484,217)
Provision for income tax benefit	(79,700)	(169,500)
Net loss	$ (148,076)	$ (314,717)
Net loss per share-basic & diluted (in dollars per share)	$ (0.03)	$ (0.06)
Weighted average shares outstanding (in shares)	5,160,971	5,160,971
Dividends paid	$ 877,365	$ 877,365

Condensed Consolidated Stateme3

Condensed Consolidated Statements of Comprehensive Earnings (Unaudited) - USD ($)	3 Months Ended
	Sep. 27, 2015	Sep. 28, 2014
Net Loss	$ (148,076)	$ (314,717)
Other comprehensive earnings-net of tax
Unrealized loss on available-for-sale securities net of tax benefit of $180,812 and $25,790	(293,762)	$ (41,899)
Reclassification adjustment for gain included in net income net of tax of $9,258	(15,041)
Comprehensive Loss	$ (456,879)	$ (356,616)

Condensed Consolidated Stateme4

Condensed Consolidated Statements of Comprehensive Earnings (Unaudited) (Parentheticals) - USD ($)	3 Months Ended
	Sep. 27, 2015	Sep. 28, 2014
Unrealized loss on available-for-sale securities tax	$ (180,812)	$ (25,790)

Condensed Consolidated Balance

Condensed Consolidated Balance Sheets (Unaudited) - USD ($)	Sep. 27, 2015	Jun. 28, 2015
Common Class A [Member]
STOCKHOLDERS' EQUITY
Common stock	$ 374,645	$ 374,645
Common Class B [Member]
STOCKHOLDERS' EQUITY
Common stock	141,452	141,452
Cash and cash equivalents	1,354,793	778,367
Short-term investments	133,741	133,729
Inventories	615,396	552,889
Prepaid expenses and other	189,727	488,212
Income taxes refundable	77,309	$ 51,309
Current deferred income tax	79,700
TOTAL CURRENT ASSETS	2,450,666	$ 2,004,506
LAND, BUILDINGS & EQUIPMENT, net of accumulated depreciation of $40,573,981 and $40,237,794	20,100,648	20,417,454
Marketable investment securities	7,410,396	8,866,392
Cash surrender value-life insurance	707,592	707,592
Other	66,465	66,465
TOTAL OTHER ASSETS	8,184,453	9,640,449
TOTAL ASSETS	30,735,767	32,062,409
Accounts payable	450,720	709,453
Accrued expenses	843,655	1,001,754
Dividends payable	877,365	877,365
Other current liabilities	905,337	290,833
Current deferred income taxes	9,113	9,113
TOTAL CURRENT LIABILITIES	3,086,190	2,888,518
LONG-TERM DEFERRED COMPENSATION	28,897	28,897
NONCURRENT DEFERRED INCOME TAXES	1,980,845	2,170,915
TOTAL LIABILITIES	$ 5,095,932	$ 5,088,330
COMMITMENTS AND CONTINGENCIES
Preferred stock, par value $10 a share: Authorized and unissued, 2,000,000 shares
Additional paid-in capital	$ 7,854,108	$ 7,854,108
Accumulated other comprehensive earnings- Unrealized gain on available-for-sale securities, net of tax	2,144,085	2,452,888
Retained earnings	15,125,545	16,150,986
TOTAL STOCKHOLDERS' EQUITY	25,639,835	26,974,079
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY	$ 30,735,767	$ 32,062,409

Condensed Consolidated Balance6

Condensed Consolidated Balance Sheets (Unaudited) (Parentheticals) - USD ($)	Sep. 27, 2015	Jun. 28, 2015
Common Class A [Member]
Common stock, shares issued (in shares)	3,746,454	3,746,454
Common stock, shares outstanding (in shares)	3,746,454	3,746,454
Common Class B [Member]
Common stock, shares issued (in shares)	1,414,517	1,414,517
Common stock, shares outstanding (in shares)	1,414,517	1,414,517
Accumulated depreciation	$ 40,573,981	$ 40,237,794
Preferred stock, par value (in dollars per share)	$ 10	$ 10
Preferred stock, shares authorized (in shares)	2,000,000	2,000,000
Common stock, par value (in dollars per share)	$ 0.10	$ 0.10
Common stock, shares authorized (in shares)	10,000,000	10,000,000

Condensed Consolidated Stateme7

Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($)	3 Months Ended
	Sep. 27, 2015	Sep. 28, 2014
Cash Flows From Operating Activities
Net loss	$ (148,076)	$ (314,717)
Adjustments to reconcile net loss to net cash provided by operating activities:
Depreciation and amortization	336,187	$ 325,392
Gain on sale of available-for-sale securities	24,299
Changes in assets and liabilities
Increase in inventories	(62,507)	$ (82,326)
Decrease in prepaid & other	298,485	$ 400,151
Increase in income taxes refundable	(26,000)
Increase in deferred tax asset	(79,700)	$ (169,500)
Decrease increase in accounts payable	(258,733)	(185,931)
Decrease in accrued expenses	(158,099)	(208,532)
Increase in other current liabilities	614,504	594,359
Net cash provided by operating activities	491,762	358,896
Cash Flows From Investing Activities
Expenditures for land, building and equipment	(19,381)	(315,987)
Net (purchases) sales & maturities of short-term investments	(12)	$ 1,319,777
Proceeds from sale of available-for-sale securities	1,000,000
Net purchases of marketable securities	(18,578)	$ (24,290)
Net cash provided by investing activities	962,029	979,500
Cash Flows From Financing Activities
Payment of cash dividends	(877,365)	(877,365)
Net cash used in financing activities	(877,365)	(877,365)
Net Increase in Cash and Equivalents	576,426	461,031
Cash and Cash Equivalents, Beginning of period	778,367	842,114
Cash and Cash Equivalents, End of period	1,354,793	$ 1,303,145
Supplemental Disclosures of Cash Flow Information
Income taxes	$ 26,000

Note 1 - Basis for Presentation

Note 1 - Basis for Presentation	3 Months Ended
	Sep. 27, 2015
Notes to Financial Statements
Organization, Consolidation, Basis of Presentation, Business Description and Accounting Policies [Text Block]	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 28, 2015 has been derived from the Company's 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 of the Company’s financial position and results of operations for the periods presented. These condensed consolidated financial statements should be read in conjunction with the consolidated financial statements and notes thereto included in the Company's annual report on Form 10-K for the year ended June 28, 2015.

Note 2 - Investments

Note 2 - Investments	3 Months Ended
	Sep. 27, 2015
Notes to Financial Statements
Investments in Debt and Marketable Equity Securities (and Certain Trading Assets) Disclosure [Text Block]	2. Investments The Company’s investments are categorized as available-for-sale. Short-term investments consist of certificates of deposits with maturities of generally three months to one year. Equity securities consist primarily of telecommunications stocks. Mutual funds consist of federal agency mortgage backed securities (Ginnie Mae). The fair value of the Company’s investments at September 27, 2015 and June 28, 2015 were as follows: Septemb er 27 , 201 5 Description Fair Value Cost basis Unrealized Gain Short-term investments $ 133,741 $ 133,741 $ - Equity securities $ 4,684,642 $ 1,285,759 $ 3,398,883 Mutual funds $ 2,725,754 $ 2,660,868 $ 64,886 Ju ne 28 , 201 5 Description Fair Value Cost basis Unrealized Gain Short-term investments $ 133,729 $ 133,729 $ - Equity securities $ 5,190,387 $ 1,285,759 $ 3,904,628 Mutual funds $ 3,676,005 $ 3,617,991 $ 58,014 The fair values of the Company’s investments were determined as follows: September 27, 2015 Description Quoted Price for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Certificates of deposits $ - $ 133,741 $ - Equity securities 4,684,642 - - Mutual funds 2,725,754 - - Total $ 7,410,396 $ 133,741 $ - June 28, 2015 Description Quoted Price for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Certificates of deposits $ - $ 133,729 $ - Equity securities 5,190,387 - - Mutual funds 3,676,005 - - Total $ 8,866,392 $ 133,729 $ - The stocks included in the portfolio as of September 27, 2015 were: 82,112 shares of AT&T 4,398 shares of CenturyLink 4,508 shares of Frontier Communications 412 shares of DexMedia 774 shares of Teradata 774 shares of NCR 40,000 shares of Sprint 31,904 shares of Verizon 6,471 shares of Vodafone 679 shares of Windstream 2,520 shares of Manulife 815 shares CSAL The Mutual fund included in the table above is Vanguard GNMA Admiral Shares #536 fund. The fair value of certificates of deposits is estimated using present value techniques and comparing the values derived from those techniques to certificates with similar values.

Note 3 - Commitments and Contin

Note 3 - Commitments and Contingencies	3 Months Ended
	Sep. 27, 2015
Notes to Financial Statements
Commitments and Contingencies Disclosure [Text Block]	3. Commitments and Contingencies The Company’s purchase commitments at September 27, 2015, are for materials, supplies, services and equipment as part of the normal course of business.

Note 4 - Employee Benefit Plans

Note 4 - Employee Benefit Plans	3 Months Ended
	Sep. 27, 2015
Notes to Financial Statements
Pension and Other Postretirement Benefits Disclosure [Text Block]	4. Employee benefit plans The Company has two defined contribution plans with Company contributions determined by the Board of Directors. The Company has no defined benefit plan or other postretirement plan.

Note 5 - New Accounting Standar

Note 5 - New Accounting Standards	3 Months Ended
	Sep. 27, 2015
Notes to Financial Statements
New Accounting Pronouncements and Changes in Accounting Principles [Text Block]	5. New Accounting Standards There were no new accounting pronouncements during the quarter ended September 27, 2015, that would impact the Company.

Note 6 - Subsequent Events

Note 6 - Subsequent Events	3 Months Ended
	Sep. 27, 2015
Notes to Financial Statements
Subsequent Events [Text Block]	6. Subsequent Events The Company has evaluated subsequent events through the time of filing these financial statements with the Securities and Exchange Commission on November 10, 2015, and has determined that no material subsequent events have occurred.

Note 7 - Reclassifications

Note 7 - Reclassifications	3 Months Ended
	Sep. 27, 2015
Notes to Financial Statements
Reclassifications [Text Block]	7. Reclassifications Certain previous year amounts have been reclassified to conform with current year presentation.

Significant Accounting Policies

Significant Accounting Policies (Policies)	3 Months Ended
	Sep. 27, 2015
Accounting Policies [Abstract]
Basis of Accounting, Policy [Policy Text Block]	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 28, 2015 has been derived from the Company's 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 of the Company’s financial position and results of operations for the periods presented. These condensed consolidated financial statements should be read in conjunction with the consolidated financial statements and notes thereto included in the Company's annual report on Form 10-K for the year ended June 28, 2015.

Note 2 - Investments (Tables)

Note 2 - Investments (Tables)	3 Months Ended
	Sep. 27, 2015
Notes Tables
Available-for-sale Securities [Table Text Block]	Septemb er 27 , 201 5 Description Fair Value Cost basis Unrealized Gain Short-term investments $ 133,741 $ 133,741 $ - Equity securities $ 4,684,642 $ 1,285,759 $ 3,398,883 Mutual funds $ 2,725,754 $ 2,660,868 $ 64,886 Ju ne 28 , 201 5 Description Fair Value Cost basis Unrealized Gain Short-term investments $ 133,729 $ 133,729 $ - Equity securities $ 5,190,387 $ 1,285,759 $ 3,904,628 Mutual funds $ 3,676,005 $ 3,617,991 $ 58,014
Fair Value, Assets Measured on Recurring Basis [Table Text Block]	September 27, 2015 Description Quoted Price for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Certificates of deposits $ - $ 133,741 $ - Equity securities 4,684,642 - - Mutual funds 2,725,754 - - Total $ 7,410,396 $ 133,741 $ - June 28, 2015 Description Quoted Price for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Certificates of deposits $ - $ 133,729 $ - Equity securities 5,190,387 - - Mutual funds 3,676,005 - - Total $ 8,866,392 $ 133,729 $ -
Schedule Of Telecommunications Stocks Held [Table Text Block]	82,112 shares of AT&T 4,398 shares of CenturyLink 4,508 shares of Frontier Communications 412 shares of DexMedia 774 shares of Teradata 774 shares of NCR 40,000 shares of Sprint 31,904 shares of Verizon 6,471 shares of Vodafone 679 shares of Windstream 2,520 shares of Manulife 815 shares CSAL

Note 2 - Investments (Details T

Note 2 - Investments (Details Textual)	3 Months Ended
	Sep. 27, 2015
Minimum [Member]
Short-term Investments Maturities Term	90 days
Maximum [Member]
Short-term Investments Maturities Term	1 year

Note 2 - Investments - Investme

Note 2 - Investments - Investments Schedule (Details) - USD ($)	Sep. 27, 2015	Jun. 28, 2015
Short-term Investments [Member]
Fair Value	$ 133,741	$ 133,729
Cost basis	$ 133,741	$ 133,729
Unrealized Gain/(loss)
Equity Securities [Member]
Fair Value	$ 4,684,642	$ 5,190,387
Cost basis	1,285,759	1,285,759
Unrealized Gain/(loss)	3,398,883	3,904,628
Mutual Funds [Member]
Fair Value	2,725,754	3,676,005
Cost basis	2,660,868	3,617,991
Unrealized Gain/(loss)	$ 64,886	$ 58,014

Note 2 - Investments - Fair Val

Note 2 - Investments - Fair Value Hierarchy (Details) - USD ($)	Sep. 27, 2015	Jun. 28, 2015
Certificates of Deposit [Member] | Fair Value, Inputs, Level 1 [Member]
Quoted Price for Identical Assets
Certificates of Deposit [Member] | Fair Value, Inputs, Level 2 [Member]
Quoted Price for Identical Assets	$ 133,741	$ 133,729
Equity Securities [Member] | Fair Value, Inputs, Level 1 [Member]
Quoted Price for Identical Assets	$ 4,684,642	$ 5,190,387
Equity Securities [Member] | Fair Value, Inputs, Level 2 [Member]
Quoted Price for Identical Assets
Mutual Funds [Member] | Fair Value, Inputs, Level 1 [Member]
Quoted Price for Identical Assets	$ 2,725,754	$ 3,676,005
Mutual Funds [Member] | Fair Value, Inputs, Level 2 [Member]
Quoted Price for Identical Assets
Fair Value, Inputs, Level 1 [Member]
Quoted Price for Identical Assets	$ 7,410,396	$ 8,866,392
Fair Value, Inputs, Level 2 [Member]
Quoted Price for Identical Assets	133,741	133,729
Quoted Price for Identical Assets	$ 7,410,396	$ 8,866,392

Note 2 - Investments - Telecomm

Note 2 - Investments - Telecommunications Stocks Held (Details)	Sep. 27, 2015shares
AT and T [Member]
Investment (in shares)	82,112
Century Link [Member]
Investment (in shares)	4,398
Frontier Communications [Member]
Investment (in shares)	4,508
DexMedia [Member]
Investment (in shares)	412
Teradata [Member]
Investment (in shares)	774
NCR [Member]
Investment (in shares)	774
Sprint [Member]
Investment (in shares)	40,000
Verizon [Member]
Investment (in shares)	31,904
Vodafone [Member]
Investment (in shares)	6,471
Windstream [Member]
Investment (in shares)	679
Manulife [Member]
Investment (in shares)	2,520
CSAL [Member]
Investment (in shares)	815

Note 4 - Employee Benefit Pla21

Note 4 - Employee Benefit Plans (Details Textual)	3 Months Ended
	Sep. 27, 2015
Number of Defined Contribution Plans	2