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 |