Bowl America (BWL.A) 10-Q 10 May 16 2016 Q3 Quarterly report Financial data

Document And Entity Information

Document And Entity Information - shares	9 Months Ended
	Mar. 27, 2016	May. 07, 2016
Common Class A [Member]
Entity Common Stock, Shares Outstanding (in shares)		3,746,454
Common Class B [Member]
Entity Common Stock, Shares Outstanding (in shares)		1,414,517
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	Mar. 27, 2016
Document Fiscal Year Focus	2,016
Document Fiscal Period Focus	Q3
Amendment Flag	false

Condensed Consolidated Statemen

Condensed Consolidated Statements of Earnings (Unaudited) - USD ($)	3 Months Ended		9 Months Ended
	Mar. 27, 2016	Mar. 29, 2015	Mar. 27, 2016	Mar. 29, 2015
Common Class A [Member]
Operating Expenses:
Per share, dividends paid (in dollars per share)	$ 0.17	$ 0.17	$ 0.51	$ 0.51
Common Class B [Member]
Operating Expenses:
Per share, dividends paid (in dollars per share)	$ 0.17	$ 0.17	$ 0.51	$ 0.51
Bowling and other	$ 5,236,678	$ 5,307,071	$ 12,876,763	$ 12,811,824
Food, beverage and merchandise sales	2,184,589	2,209,356	5,470,696	5,303,985
Total Operating Revenues	7,421,267	7,516,427	18,347,459	18,115,809
Employee compensation and benefits	2,764,045	2,844,728	8,247,146	8,340,211
Cost of bowling and other services	1,558,273	1,658,483	4,516,368	4,665,237
Cost of food, beverage and merchandise sales	607,830	612,349	1,640,210	1,600,975
Depreciation and amortization	334,572	330,813	1,009,354	987,018
General and administrative	300,079	234,963	763,448	687,389
Total Operating Expenses	5,564,799	5,681,336	16,176,526	16,280,830
Operating Income	1,856,468	1,835,091	2,170,933	1,834,979
Interest, dividend and other income	99,620	117,600	340,280	374,898
Earnings before provision for income taxes	1,956,088	1,952,691	2,511,213	2,209,877
Provision for income taxes	684,600	683,400	878,900	773,400
Net Earnings	$ 1,271,488	$ 1,269,291	$ 1,632,313	$ 1,436,477
Earnings per share-basic & diluted (in dollars per share)	$ 0.25	$ 0.25	$ 0.32	$ 0.28
Weighted average shares outstanding (in shares)	5,160,971	5,160,971	5,160,971	5,160,971
Dividends paid	$ 877,365	$ 877,365	$ 2,632,095	$ 2,632,095

Condensed Consolidated Stateme3

Condensed Consolidated Statements of Comprehensive Earnings - USD ($)	3 Months Ended		9 Months Ended
	Mar. 27, 2016	Mar. 29, 2015	Mar. 27, 2016	Mar. 29, 2015
Net earnings	$ 1,271,488	$ 1,269,291	$ 1,632,313	$ 1,436,477
Other comprehensive earnings- net of tax
Unrealized gain (loss) on available- for-sale securities net of tax (benefit) of $223,370 and ($41,494) for 13 weeks, and $132,025 and ($141,790) for 39 weeks	$ 362,900	$ (67,414)	214,494	$ (230,362)
Reclassification adjustment for gain included in Net Income, net of tax of $9,258			(15,041)
Comprehensive earnings	$ 1,634,388	$ 1,201,877	$ 1,831,766	$ 1,206,115

Condensed Consolidated Stateme4

Condensed Consolidated Statements of Comprehensive Earnings (Parentheticals) - USD ($)	3 Months Ended		9 Months Ended
	Mar. 27, 2016	Mar. 29, 2015	Mar. 27, 2016	Mar. 29, 2015
Unrealized gain (loss) on available-for-sale securities tax	$ 223,370	$ (41,494)	$ 132,025	$ (141,790)
Reclassification adjustment for gain tax			$ 9,258

Condensed Consolidated Balance

Condensed Consolidated Balance Sheets (Unaudited) - USD ($)	Mar. 27, 2016	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	4,031,670	778,367
Short-term investments	133,795	133,729
Inventories	485,559	552,889
Prepaid expenses and other	$ 318,284	488,212
Income taxes refundable		51,309
TOTAL CURRENT ASSETS	$ 4,969,308	2,004,506
Net of accumulated depreciation of $41,160,341 and $40,237,794	19,642,686	20,417,454
Marketable securities	8,267,702	8,866,392
Cash surrender value-life insurance	707,592	707,592
Other	66,465	66,465
TOTAL OTHER ASSETS	9,041,759	9,640,449
TOTAL ASSETS	33,653,753	32,062,409
Accounts payable	869,687	709,453
Accrued expenses	817,970	1,001,754
Dividends payable	877,365	877,365
Other current liabilities	2,386,724	$ 290,833
Income taxes payable	196,565
Current deferred income taxes	9,113	$ 9,113
TOTAL CURRENT LIABILITIES	5,157,424	2,888,518
LONG-TERM DEFERRED COMPENSATION	28,897	28,897
NONCURRENT DEFERRED INCOME TAXES	2,293,682	2,170,915
TOTAL LIABILITIES	$ 7,480,003	$ 5,088,330
COMMITMENTS AND CONTINGENCIES (Note 3)
Preferred stock, par value $10 a share: Authorized and unissued, 2,000,000 shares
Additional paid-in capital	$ 7,854,108	$ 7,854,108
Unrealized gain on available-for-sale securities, net of tax	2,652,341	2,452,888
Retained earnings	15,151,204	16,150,986
TOTAL STOCKHOLDERS' EQUITY	26,173,750	26,974,079
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY	$ 33,653,753	$ 32,062,409

Condensed Consolidated Balance6

Condensed Consolidated Balance Sheets (Unaudited) (Parentheticals) - USD ($)	Mar. 27, 2016	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	$ 41,160,341	$ 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 ($)	9 Months Ended
	Mar. 27, 2016	Mar. 29, 2015
Cash Flows From Operating Activities
Net earnings	$ 1,632,313	$ 1,436,477
Adjustments to reconcile net earnings to net cash provided by operating activities
Depreciation and amortization	1,009,354	$ 987,018
Gain on sale of available-for-sale securities	(24,299)
Changes in assets and liabilities
Decrease in inventories	67,330	$ 25,876
Decrease in prepaid & other	169,928	331,909
Decrease in income taxes refundable	$ 51,309	298,577
Increase in other long-term assets		(1,300)
Increase (decrease) in accounts payable	$ 160,234	(83,474)
Decrease in accrued expenses	(183,784)	$ (274,603)
Increase in income taxes payable	196,565
Increase in other current liabilities	2,095,891	$ 2,066,827
Net cash provided by operating activities	5,174,841	4,787,307
Cash Flows From Investing Activities
Expenditures for land, building and equipment	(234,586)	(549,747)
Net sales & maturities (purchases) of short-term investments	(66)	$ 1,319,636
Proceeds from sale of available-for-sale securities	1,000,000
Purchases of marketable securities	(54,791)	$ (91,782)
Net cash provided by investing activities	710,557	678,107
Cash Flows From Financing Activities
Payment of cash dividends	(2,632,095)	(2,632,095)
Net cash used in financing activities	(2,632,095)	(2,632,095)
Net increase in Cash and Equivalents	3,253,303	2,833,319
Cash and Equivalents, Beginning of period	778,367	842,114
Cash and Equivalents, End of period	4,031,670	3,675,433
Supplemental Disclosures of Cash Flow Information
Income taxes	$ 606,026	$ 474,822

Note 1 - Basis for Presentation

Note 1 - Basis for Presentation	9 Months Ended
	Mar. 27, 2016
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	9 Months Ended
	Mar. 27, 2016
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 March 27, 2016 and June 28, 2015 were as follows: March 27 , 201 6 Description Fair Value Cost basis Unrealized Gain Short-term investments $ 133,795 $ 133,795 $ - Equity securities $ 5,495,517 $ 1,285,759 $ 4,209,758 Mutual funds $ 2,772,185 $ 2,697,081 $ 75,104 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: March 27, 2016 Description Quoted Price for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Certificates of deposits $ - $ 133,795 $ - Equity securities 5,495,517 - - Mutual funds 2,772,185 - - Total $ 8,267,702 $ 133,795 $ - 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 common stocks included in the equity securities portfolio as of March 27, 2016 were: AT&T 82,112 Manulife 2,520 DexMedia 412 NCR 774 Teradata 774 Vodafone 6,471 CenturyLink 4,398 Frontier Communications shares 4,508 Sprint 40,000 Verizon 31,904 Windstream 679 CSAL shares 815 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	9 Months Ended
	Mar. 27, 2016
Notes to Financial Statements
Commitments and Contingencies Disclosure [Text Block]	3. Commitments and Contingencies The Company’s purchase commitments at March 27, 2016 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	9 Months Ended
	Mar. 27, 2016
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	9 Months Ended
	Mar. 27, 2016
Notes to Financial Statements
New Accounting Pronouncements and Changes in Accounting Principles [Text Block]	5. New Accounting Standards In January 2016, the Financial Accounting Standards Board (FASB) issued guidance on equity securities that requires entities to recognize changes in unrealized gains and losses on equity securities in income in the current period unless the entity is recording the related investment under the equity method or consolidating the related entity. This amendment is effective for the Company’s fiscal year ending June 2019 with earlier adoption permitted. Management is currently assessing the impact of this standard on the Company’s financial statements. In February 2016, the FASB issued guidance on leases which requires entities to recognize right-of-use assets and lease liabilities on the balance sheet for the rights and obligations created by all leases, including operating leases, with terms of more than 12 months. The new guidance also requires additional disclosures on the amount, timing, and uncertainty of cash flows arising from leases. These disclosures include qualitative and quantitative information. This amendment is effective for the Company’s fiscal year ending June 2020 with early adoption permitted. We are in the process of evaluating the impact the adoption of this guidance will have on our consolidated financial statements and related disclosures

Note 6 - Subsequent Events

Note 6 - Subsequent Events	9 Months Ended
	Mar. 27, 2016
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 May 10, 2016, and has determined that no material subsequent events have occurred.

Note 7 - Reclassifications

Note 7 - Reclassifications	9 Months Ended
	Mar. 27, 2016
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)	9 Months Ended
	Mar. 27, 2016
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.
New Accounting Pronouncements, Policy [Policy Text Block]	In January 2016, the Financial Accounting Standards Board (FASB) issued guidance on equity securities that requires entities to recognize changes in unrealized gains and losses on equity securities in income in the current period unless the entity is recording the related investment under the equity method or consolidating the related entity. This amendment is effective for the Company’s fiscal year ending June 2019 with earlier adoption permitted. Management is currently assessing the impact of this standard on the Company’s financial statements. In February 2016, the FASB issued guidance on leases which requires entities to recognize right-of-use assets and lease liabilities on the balance sheet for the rights and obligations created by all leases, including operating leases, with terms of more than 12 months. The new guidance also requires additional disclosures on the amount, timing, and uncertainty of cash flows arising from leases. These disclosures include qualitative and quantitative information. This amendment is effective for the Company’s fiscal year ending June 2020 with early adoption permitted. We are in the process of evaluating the impact the adoption of this guidance will have on our consolidated financial statements and related disclosures

Note 2 - Investments (Tables)

Note 2 - Investments (Tables)	9 Months Ended
	Mar. 27, 2016
Notes Tables
Available-for-sale Securities [Table Text Block]	March 27 , 201 6 Description Fair Value Cost basis Unrealized Gain Short-term investments $ 133,795 $ 133,795 $ - Equity securities $ 5,495,517 $ 1,285,759 $ 4,209,758 Mutual funds $ 2,772,185 $ 2,697,081 $ 75,104 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]	March 27, 2016 Description Quoted Price for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Certificates of deposits $ - $ 133,795 $ - Equity securities 5,495,517 - - Mutual funds 2,772,185 - - Total $ 8,267,702 $ 133,795 $ - 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]	AT&T 82,112 Manulife 2,520 DexMedia 412 NCR 774 Teradata 774 Vodafone 6,471 CenturyLink 4,398 Frontier Communications shares 4,508 Sprint 40,000 Verizon 31,904 Windstream 679 CSAL shares 815

Note 2 - Investments (Details T

Note 2 - Investments (Details Textual)	9 Months Ended
	Mar. 27, 2016
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 ($)	Mar. 27, 2016	Jun. 28, 2015
Short-term Investments [Member]
Fair Value	$ 133,795	$ 133,729
Cost basis	$ 133,795	$ 133,729
Unrealized Gain/(loss)
Equity Securities [Member]
Fair Value	$ 5,495,517	$ 5,190,387
Cost basis	1,285,759	1,285,759
Unrealized Gain/(loss)	4,209,758	3,904,628
Mutual Funds [Member]
Fair Value	2,772,185	3,676,005
Cost basis	2,697,081	3,617,991
Unrealized Gain/(loss)	$ 75,104	$ 58,014

Note 2 - Investments - Fair Val

Note 2 - Investments - Fair Value Hierarchy (Details) - USD ($)	Mar. 27, 2016	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	$ 133,795	$ 133,729
Equity Securities [Member] | Fair Value, Inputs, Level 1 [Member]
Quoted Price for Identical Assets	$ 5,495,517	$ 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	$ 2,772,185	$ 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	$ 8,267,702	$ 8,866,392
Fair Value, Inputs, Level 2 [Member]
Quoted Price for Identical Assets	133,795	133,729
Quoted Price for Identical Assets	$ 8,267,702	$ 8,866,392

Note 2 - Investments - Telecomm

Note 2 - Investments - Telecommunications Stocks Held (Details)	Mar. 27, 2016shares
ATT [Member]
Investment (in shares)	82,112
Manulife [Member]
Investment (in shares)	2,520
DexMedia [Member]
Investment (in shares)	412
NCR [Member]
Investment (in shares)	774
Teradata [Member]
Investment (in shares)	774
Vodafone [Member]
Investment (in shares)	6,471
Century Link [Member]
Investment (in shares)	4,398
Frontier Communications [Member]
Investment (in shares)	4,508
Sprint [Member]
Investment (in shares)	40,000
Verizon [Member]
Investment (in shares)	31,904
Windstream [Member]
Investment (in shares)	679
CSAL [Member]
Investment (in shares)	815

Note 4 - Employee Benefit Pla21

Note 4 - Employee Benefit Plans (Details Textual)	9 Months Ended
	Mar. 27, 2016
Number of Defined Contribution Plans	2