Bowl America (BWL.A) 10-Q 15 Nov 16 2017 Q1 Quarterly report Financial data

Document And Entity Information

Document And Entity Information - shares	3 Months Ended
	Oct. 02, 2016	Nov. 11, 2016
Common Class B [Member]
Document Information [Line Items]
Entity Common Stock, Shares Outstanding (in shares)		1,414,517
Common Class A [Member]
Document Information [Line Items]
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	Oct. 2, 2016
Document Fiscal Year Focus	2,017
Document Fiscal Period Focus	Q1
Amendment Flag	false

Condensed Consolidated Statemen

Condensed Consolidated Statements of Earnings (Current Period Unaudited) - USD ($)	3 Months Ended
	Oct. 02, 2016	Sep. 27, 2015
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	$ 3,577,379	$ 3,474,033
Food, beverage and merchandise sales	1,486,957	1,446,130
Total Operating Revenue	5,064,336	4,920,163
Employee compensation and benefits	2,681,333	2,746,545
Cost of bowling and other services	1,469,370	1,510,612
Cost of food, beverage and merchandise sales	482,275	469,342
Depreciation and amortization	292,694	336,187
General and administrative	230,776	231,781
Total Operating Expenses	5,156,448	5,294,467
Operating Loss	(92,112)	(374,304)
Interest, dividend and other income	93,714	146,528
Interest expense	2,722
Loss before provision for income tax benefit	(1,120)	(227,776)
Provision for income tax benefit	(400)	(79,700)
Net loss	$ (720)	$ (148,076)
Net loss per share-basic & diluted (in dollars per share)	$ 0	$ (0.03)
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 (Current Period Unaudited) - USD ($)	3 Months Ended
	Oct. 02, 2016	Sep. 27, 2015
Net loss	$ (720)	$ (148,076)
Other comprehensive earnings-net of tax
Unrealized loss on available-for-sale securities net of tax benefit of $116,046 and $180,812	(187,618)	(293,762)
Reclassification adjustment for loss (gain) included in net loss, net of tax (benefit) of ($2,227) and $9,258	3,619	(15,041)
Comprehensive Loss	$ (184,719)	$ (456,879)

Condensed Consolidated Stateme4

Condensed Consolidated Statements Of Comprehensive Earnings (Current Period Unaudited) (Parentheticals) - USD ($)	3 Months Ended
	Oct. 02, 2016	Sep. 27, 2015
Unrealized loss on available-for-sale securities, tax	$ 116,046	$ 180,812
Reclassification adjustment for loss (gain), tax	$ (2,227)	$ 9,258

Condensed Consolidated Balance

Condensed Consolidated Balance Sheets (Current Period Unaudited) - USD ($)	Oct. 02, 2016	Jul. 03, 2016
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	571,487	986,193
Short-term investments	485,452	484,558
Inventories	591,287	561,217
Prepaid expenses and other	426,559	664,379
Income taxes refundable	187,060
TOTAL CURRENT ASSETS	2,261,845	2,696,347
LAND, BUILDINGS & EQUIPMENT, net of accumulated depreciation of $41,268,477 and $40,987,543	19,336,340	19,523,856
Marketable investment securities	8,540,728	8,824,456
Cash surrender value-life insurance	740,161	740,161
Other	66,315	66,315
TOTAL OTHER ASSETS	9,347,204	9,630,932
TOTAL ASSETS	30,945,389	31,851,135
Accounts payable	439,729	660,711
Accrued expenses	773,467	1,193,463
Dividends payable	877,365	877,365
Income taxes payable		207,840
Short-term note payable	500,000
Other current liabilities	940,073	325,982
Current deferred income taxes	27,850	27,850
TOTAL CURRENT LIABILITIES	3,558,484	3,293,211
LONG-TERM DEFERRED COMPENSATION	23,620	23,620
NONCURRENT DEFERRED INCOME TAXES	2,273,354	2,384,962
TOTAL LIABILITIES	5,855,458	5,701,793
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
Unrealized gain on available-for-sale securities, net of tax	2,805,261	2,986,587
Retained earnings	13,914,465	14,792,550
TOTAL STOCKHOLDERS' EQUITY	25,089,931	26,149,342
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY	$ 30,945,389	$ 31,851,135

Condensed Consolidated Balance6

Condensed Consolidated Balance Sheets (Current Period Unaudited) (Parentheticals) - USD ($)	Oct. 02, 2016	Jul. 03, 2016
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
LAND, BUILDINGS & EQUIPMENT, accumulated depreciation	$ 41,268,477	$ 40,987,543
Preferred stock, shares authorized (in shares)	2,000,000	2,000,000
Preferred stock, par value (in dollars per share)	$ 10	$ 10
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 (Current Period Unaudited) - USD ($)	3 Months Ended
	Oct. 02, 2016	Sep. 27, 2015
Cash Flows From Operating Activities
Net loss	$ (720)	$ (148,076)
Adjustments to reconcile net loss to net cash provided by operating activities:
Depreciation and amortization	292,694	336,187
Loss on involuntary cancellation of available-for-sale securities	5,845
Gain on sale of available-for-sale securities		(24,299)
Changes in assets and liabilities
Increase in inventories	(30,070)	(62,507)
Decrease in prepaid & other	237,820	298,485
Increase in income taxes refundable	(187,060)	(26,000)
Increase in deferred tax asset		(79,700)
Decrease in accounts payable	(220,982)	(258,733)
Decrease in accrued expenses	(419,996)	(158,099)
Decrease in income taxes payable	(207,840)
Increase in other current liabilities	614,091	614,504
Net cash provided by operating activities	83,782	491,762
Cash Flows From Investing Activities
Expenditures for land, building and equipment	(105,178)	(19,381)
Net (purchases) sales & maturities of short-term investments	(894)	(12)
Proceeds from sale of available-for-sale securities		1,000,000
Net purchases of marketable securities	(15,051)	(18,578)
Net cash (used in) provided by investing activities	(121,123)	962,029
Cash Flows From Financing Activities
Proceeds from note payable	500,000
Payment of cash dividends	(877,365)	(877,365)
Net cash used in financing activities	(377,365)	(877,365)
Net Change in Cash and Equivalents	(414,706)	576,426
Cash and Cash Equivalents, Beginning of period	986,193	778,367
Cash and Cash Equivalents, End of period	571,487	1,354,793
Supplemental Disclosures of Cash Flow Information
Interest	2,722
Income taxes	$ 394,500	$ 26,000

Note 1 - Basis for Presentation

Note 1 - Basis for Presentations	3 Months Ended
	Oct. 02, 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 July 3, 2016 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 July 3, 2016.

Note 2 - Investments

Note 2 - Investments	3 Months Ended
	Oct. 02, 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 October 2, 2016 and July 3, 2016 were as follows: Octob er 2 , 201 6 Description Fair Value Cost basis Unrealized Gain Short-term investments $ 485,452 $ 485,452 $ - Equity securities $ 5,703,049 $ 1,279,914 $ 4,423,135 Mutual funds $ 2,837,679 $ 2,728,910 $ 108,769 Ju ly 3 , 201 6 Description Fair Value Cost basis Unrealized Gain Short-term investments $ 484,558 $ 484,558 $ - Equity securities $ 6,001,841 $ 1,285,759 $ 4,716,082 Mutual funds $ 2,822,615 $ 2,713,860 $ 108,755 The fair values of the Company’s investments were determined as follows: October 2, 2016 Description Quoted Price for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Certificates of deposits $ - $ 485,452 $ - Equity securities 5,703,049 - - Mutual funds 2,837,679 - - Total $ 8,540,728 $ 485,452 $ - July 3, 2016 Description Quoted Price for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significan t Unobservable Inputs (Level 3) Certificates of deposits $ - $ 484,558 $ - Equity securities 6,001,841 - - Mutual funds 2,822,615 - - Total $ 8,824,456 $ 484,558 $ - The equity securities portfolio includes the following stocks: AT&T shares 82,112 Manulife shares 2,520 CSAL shares 815 NCR shares 774 Teradata shares 774 Vodafone shares 6,471 CenturyLink shares 4,398 Frontier Communications shares 4,508 Sprint shares 40,000 Verizon shares 31,904 Windstream shares 679 On August 1, 2016, Dex Media, a spin off from Verizon, completed a financial restructure. Previous shares of Dex Media’s common stock were cancelled with no distribution to shareholders resulting in a loss of $5,845 on the Company’s holdings. 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 2 - Note Payable

Note 2 - Note Payable	3 Months Ended
	Oct. 02, 2016
Notes to Financial Statements
Debt, Policy [Policy Text Block]	2. Note Payable In August 2016 the Company obtained a $500,000 short-term loan that matures in February 2017. The loan bears interest at the one month LIBOR rate plus 2.5% with interest only payable monthly. A portion of the loan is collateralized by certificates of deposits.

Note 3 - Commitments and Contin

Note 3 - Commitments and Contingencies	3 Months Ended
	Oct. 02, 2016
Notes to Financial Statements
Commitments and Contingencies Disclosure [Text Block]	3. Commitments and Contingencies The Company’s purchase commitments at October 2, 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	3 Months Ended
	Oct. 02, 2016
Notes to Financial Statements
Disclosure of Compensation Related Costs, Share-based Payments [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
	Oct. 02, 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 There were no new accounting pronouncements during the quarter ended October 2, 2016, that would impact the Company.

Note 6 - Subsequent Events

Note 6 - Subsequent Events	3 Months Ended
	Oct. 02, 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 November 15, 2016, and has determined that no material subsequent events have occurred.

Note 7 - Reclassifications

Note 7 - Reclassifications	3 Months Ended
	Oct. 02, 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)	3 Months Ended
	Oct. 02, 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 July 3, 2016 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 July 3, 2016.

Note 2 - Investments (Tables)

Note 2 - Investments (Tables)	3 Months Ended
	Oct. 02, 2016
Notes Tables
Available-for-sale Securities [Table Text Block]	Octob er 2 , 201 6 Description Fair Value Cost basis Unrealized Gain Short-term investments $ 485,452 $ 485,452 $ - Equity securities $ 5,703,049 $ 1,279,914 $ 4,423,135 Mutual funds $ 2,837,679 $ 2,728,910 $ 108,769 Ju ly 3 , 201 6 Description Fair Value Cost basis Unrealized Gain Short-term investments $ 484,558 $ 484,558 $ - Equity securities $ 6,001,841 $ 1,285,759 $ 4,716,082 Mutual funds $ 2,822,615 $ 2,713,860 $ 108,755
Fair Value, Assets Measured on Recurring Basis [Table Text Block]	October 2, 2016 Description Quoted Price for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Certificates of deposits $ - $ 485,452 $ - Equity securities 5,703,049 - - Mutual funds 2,837,679 - - Total $ 8,540,728 $ 485,452 $ - July 3, 2016 Description Quoted Price for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significan t Unobservable Inputs (Level 3) Certificates of deposits $ - $ 484,558 $ - Equity securities 6,001,841 - - Mutual funds 2,822,615 - - Total $ 8,824,456 $ 484,558 $ -
Schedule Of Telecommunications Stocks Held [Table Text Block]	AT&T shares 82,112 Manulife shares 2,520 CSAL shares 815 NCR shares 774 Teradata shares 774 Vodafone shares 6,471 CenturyLink shares 4,398 Frontier Communications shares 4,508 Sprint shares 40,000 Verizon shares 31,904 Windstream shares 679

Note 2 - Investments (Details T

Note 2 - Investments (Details Textual) - USD ($)	Aug. 01, 2016	Oct. 02, 2016
Maximum [Member]
Short-term Investments Maturities Term		1 year
DexMedia [Member]
Available-for-sale Securities, Gross Realized Gain (Loss)	$ 5,845

Note 2 - Investments - Investme

Note 2 - Investments - Investments Schedule (Details) - USD ($)	Oct. 02, 2016	Jul. 03, 2016
Short-term Investments [Member]
Fair Value	$ 485,452	$ 484,558
Cost basis	485,452	484,558
Unrealized Gain
Equity Securities [Member]
Fair Value	5,703,049	6,001,841
Cost basis	1,279,914	1,285,759
Unrealized Gain	4,423,135	4,716,082
Mutual Fund [Member]
Fair Value	2,837,679	2,822,615
Cost basis	2,728,910	2,713,860
Unrealized Gain	$ 108,769	$ 108,755

Note 2 - Investments - Fair Val

Note 2 - Investments - Fair Value Hierarchy (Details) - USD ($)	Oct. 02, 2016	Jul. 03, 2016
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	485,452	484,558
Certificates of Deposit [Member] | Fair Value, Inputs, Level 3 [Member]
Quoted Price for Identical Assets
Equity Securities [Member] | Fair Value, Inputs, Level 1 [Member]
Quoted Price for Identical Assets	5,703,049	6,001,841
Equity Securities [Member] | Fair Value, Inputs, Level 2 [Member]
Quoted Price for Identical Assets
Equity Securities [Member] | Fair Value, Inputs, Level 3 [Member]
Quoted Price for Identical Assets
Mutual Funds [Member] | Fair Value, Inputs, Level 1 [Member]
Quoted Price for Identical Assets	2,837,679
Mutual Funds [Member] | Fair Value, Inputs, Level 2 [Member]
Quoted Price for Identical Assets
Mutual Fund [Member] | Fair Value, Inputs, Level 1 [Member]
Quoted Price for Identical Assets		2,822,615
Mutual Fund [Member] | Fair Value, Inputs, Level 2 [Member]
Quoted Price for Identical Assets
Mutual Fund [Member] | Fair Value, Inputs, Level 3 [Member]
Quoted Price for Identical Assets
Fair Value, Inputs, Level 1 [Member]
Quoted Price for Identical Assets	8,540,728	8,824,456
Fair Value, Inputs, Level 2 [Member]
Quoted Price for Identical Assets	485,452	484,558
Fair Value, Inputs, Level 3 [Member]
Quoted Price for Identical Assets
Quoted Price for Identical Assets	$ 8,540,728	$ 8,824,456

Note 2 - Investments - Telecomm

Note 2 - Investments - Telecommunications Stocks Held (Details)	Oct. 02, 2016shares
ATT [Member]
Investment (in shares)	82,112
Manulife [Member]
Investment (in shares)	2,520
CSAL [Member]
Investment (in shares)	815
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

Note 2 - Note Payable (Details

Note 2 - Note Payable (Details Textual) - USD ($)	Oct. 02, 2016	Aug. 31, 2016	Jul. 03, 2016
London Interbank Offered Rate (LIBOR) [Member]
Short-term Debt, Percentage Bearing Variable Interest Rate		2.50%
Short-term Debt	$ 500,000	$ 500,000

Note 4 - Employee Benefit Pla23

Note 4 - Employee Benefit Plans (Details Textual)	3 Months Ended
	Oct. 02, 2016
Defined Contribution Plan Number of Plans	2