Bowl America (BWL.A) 10-Q 14 Feb 17 2017 Q2 Quarterly report Financial data

Document And Entity Information

Document And Entity Information - shares	6 Months Ended
	Jan. 01, 2017	Jan. 29, 2017
Document Information [Line Items]
Entity Registrant Name	BOWL AMERICA INC
Entity Central Index Key	13,573
Trading Symbol	bwla
Current Fiscal Year End Date	--07-02
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	Jan. 1, 2017
Document Fiscal Year Focus	2,017
Document Fiscal Period Focus	Q2
Amendment Flag	false
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

Condensed Consolidated Statemen

Condensed Consolidated Statements of Earnings (Unaudited) - USD ($)	3 Months Ended		6 Months Ended
	Jan. 01, 2017	Dec. 27, 2015	Jan. 01, 2017	Dec. 27, 2015
Operating Revenues:
Bowling and other	$ 4,378,959	$ 4,166,052	$ 7,956,338	$ 7,640,085
Food, beverage and merchandise sales	1,855,585	1,839,977	3,342,542	3,286,107
Total Operating Revenues	6,234,544	6,006,029	11,298,880	10,926,192
Operating Expenses:
Employee compensation and benefits	2,737,379	2,736,556	5,418,712	5,483,101
Cost of bowling and other services	1,472,207	1,447,483	2,941,577	2,958,095
Cost of food, beverage and merchandise sales	577,183	563,038	1,059,458	1,032,380
Depreciation and amortization	275,198	338,595	567,892	674,782
General and administrative	210,565	231,588	441,341	463,369
Total Operating Expenses	5,272,532	5,317,260	10,428,980	10,611,727
Operating Income	962,012	688,769	869,900	314,465
Interest, dividend and other income	111,188	94,132	204,902	240,660
Interest expense	2,594		5,316
Earnings before provision for income taxes	1,070,606	782,901	1,069,486	555,125
Provision for income taxes	374,700	274,000	374,300	194,300
Net Earnings	$ 695,906	$ 508,901	$ 695,186	$ 360,825
Earnings per share-basic & diluted (in dollars per share)	$ 0.14	$ 0.10	$ 0.14	$ 0.07
Weighted average shares outstanding (in shares)	5,160,971	5,160,971	5,160,971	5,160,971
Dividends paid	$ 877,365	$ 877,365	$ 1,754,730	$ 1,754,730
Common Class A [Member]
Operating Expenses:
Per share, dividends paid (in dollars per share)	$ 0.17	$ 0.17	$ 0.34	$ 0.34
Common Class B [Member]
Operating Expenses:
Per share, dividends paid (in dollars per share)	$ 0.17	$ 0.17	$ 0.34	$ 0.34

Condensed Consolidated Stateme3

Condensed Consolidated Statements Of Comprehensive Earnings (Unaudited) - USD ($)	3 Months Ended		6 Months Ended
	Jan. 01, 2017	Dec. 27, 2015	Jan. 01, 2017	Dec. 27, 2015
Net earnings	$ 695,906	$ 508,901	$ 695,186	$ 360,825
Other comprehensive earnings- net of tax
Unrealized gain (loss) on available- for-sale securities net of tax (benefit) of $54,819 and $89,467 for 13 weeks, and ($59,000) and $91,345 for 26 weeks	88,938	145,356	(96,008)	(148,406)
Reclassification adjustment for loss (gain) included in Net Income net of tax (benefit) of ($2,227) and $9,258			3,619	(15,041)
Comprehensive earnings	$ 784,844	$ 654,257	$ 602,797	$ 197,378

Condensed Consolidated Stateme4

Condensed Consolidated Statements Of Comprehensive Earnings (Unaudited) (Parentheticals) - USD ($)	3 Months Ended		6 Months Ended
	Jan. 01, 2017	Dec. 27, 2015	Jan. 01, 2017	Dec. 27, 2015
Unrealized gain (loss) on available-for-sale securities, tax	$ 54,819	$ 89,467	$ (59,000)	$ 91,345
Reclassification adjustment for loss (gain), tax			$ (2,227)	$ 9,258

Condensed Consolidated Balance

Condensed Consolidated Balance Sheets (Unaudited) - USD ($)	Jan. 01, 2017	Jul. 03, 2016
CURRENT ASSETS:
Cash and cash equivalents	$ 1,368,279	$ 986,193
Short-term investments	486,306	484,558
Inventories	553,952	561,217
Prepaid expenses and other	423,551	664,379
Income taxes refundable	44,960
TOTAL CURRENT ASSETS	2,877,048	2,696,347
LAND, BUILDINGS & EQUIPMENT
Land, buildings, and equipment, net of accumulated depreciation of $41,268,477 and $40,987,543	19,126,593	19,523,856
OTHER ASSETS:
Marketable securities	8,719,110	8,824,456
Cash surrender value-life insurance	740,161	740,161
Other	66,315	66,315
TOTAL OTHER ASSETS	9,525,586	9,630,932
TOTAL ASSETS	31,529,227	31,851,135
CURRENT LIABILITIES:
Accounts payable	508,094	660,711
Accrued expenses	644,325	1,193,463
Dividends payable	877,365	877,365
Income taxes payable		207,840
Short-term note payable	500,000
Other current liabilities	1,622,391	325,982
Current deferred income taxes	27,850	27,850
TOTAL CURRENT LIABILITIES	4,180,025	3,293,211
LONG-TERM DEFERRED COMPENSATION	23,620	23,620
NONCURRENT DEFERRED INCOME TAXES	2,328,173	2,384,962
TOTAL LIABILITIES	6,531,818	5,701,793
COMMITMENTS AND CONTINGENCIES[converted]
STOCKHOLDERS' EQUITY
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	2,894,198	2,986,587
Retained earnings	13,733,006	14,792,550
TOTAL STOCKHOLDERS' EQUITY	24,997,409	26,149,342
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY	31,529,227	31,851,135
Common Class A [Member]
STOCKHOLDERS' EQUITY
Common Stock	374,645	374,645
Common Class B [Member]
STOCKHOLDERS' EQUITY
Common Stock	$ 141,452	$ 141,452

Condensed Consolidated Balance6

Condensed Consolidated Balance Sheets (Unaudited) (Parentheticals) - USD ($)	Jan. 01, 2017	Jul. 03, 2016
Land, buildings, and equipment, accumulated depreciation	$ 41,544,713	$ 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
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

Condensed Consolidated Stateme7

Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($)	6 Months Ended
	Jan. 01, 2017	Dec. 27, 2015
Cash Flows From Operating Activities
Net earnings	$ 695,186	$ 360,825
Adjustments to reconcile net earnings to net cash provided by operating activities:
Depreciation and amortization	567,892	674,782
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
Decrease (increase) in inventories	7,265	(43,756)
Decrease in prepaid & other	240,828	299,076
Increase in income taxes refundable		(6,700)
(Increase) decrease in other long-term assets
Decrease in accounts payable	(152,617)	(173,446)
Decrease in accrued expenses	(549,138)	(273,289)
Decrease in income taxes payable	(252,800)
Increase in other current liabilities	1,296,409	1,372,822
Net cash provided by operating activities	1,858,870	2,186,015
Cash Flows From Investing Activities
Expenditures for land, building and equip	(170,629)	(112,279)
Net sales & maturities (purchases) of short-term investments	(1,748)	(25)
Proceeds from sale of available-for-sale securities		1,000,000
Purchases of marketable securities	(49,677)	(35,953)
Net cash provided by (used in) Investing activities	(222,054)	851,743
Cash Flows From Financing Activities
Proceeds from note payable	500,000
Payment of cash dividends	(1,754,730)	(1,754,730)
Net cash used in financing activities	(1,254,730)	(1,754,730)
Net Increase in Cash and Equivalents	382,086	1,283,028
Cash and Equivalents, Beginning of period	986,193	778,367
Cash and Equivalents, End of period	1,368,279	2,061,395
Supplemental Disclosures of Cash Flow Information Cash Paid During the Period for:
Interest	5,316
Income taxes	$ 627,100	$ 201,000

Note 1 - Basis for Presentation

Note 1 - Basis for Presentation	6 Months Ended
	Jan. 01, 2017
Notes to Financial Statements
Organization, Consolidation, Basis of Presentation, Business Description and Accounting Policies [Text Block]	1. The accompanying unaudited condensed consolidated financial statements of Bowl America Incorporated and subsidiaries (collectively, 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 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 July 3, 2016.

Note 2 - Investments

Note 2 - Investments	6 Months Ended
	Jan. 01, 2017
Notes to Financial Statements
Investments in Debt and Marketable Equity Securities (and Certain Trading Assets) Disclosure [Text Block]	2. The Company’s investments are categorized as available-for-sale. Short-term investments consist of certificates of deposits with maturities of generally three one January 1, 2017 July 3, 2016 January 1 , 201 7 Description Fair Value Cost basis Unrealized Gain/ (loss) Short-term investments $ 486,306 $ 486,306 $ - Equity securities $ 5,932,982 $ 1,279,914 $ 4,653,068 Mutual funds $ 2,786,128 $ 2,763,538 $ 22,590 Ju ly 3, 201 6 Description Fair Value Cost basis Unrealized Gain (loss) 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: January 1, 2017 Description Quoted Price for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Certificates of deposits $ - $ 486,306 $ - Equity securities 5,932,982 - - Mutual funds 2,786,128 - - Total $ 8,719,110 $ 486,306 $ - July 3, 2016 Description Quoted Price for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant 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 shares of common stock included in the equity securities portfolio as of January 1, 2017 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, $5,845 The Mutual fund included in the table above is Vanguard GNMA Admiral Shares #536

Note 3 - Note Payable

Note 3 - Note Payable	6 Months Ended
	Jan. 01, 2017
Notes to Financial Statements
Debt Disclosure [Text Block]	3. In August 2016, $500,000 February 2017. one 2.5% January 6, 2017.

Note 4 - Commitments and Contin

Note 4 - Commitments and Contingencies	6 Months Ended
	Jan. 01, 2017
Notes to Financial Statements
Commitments and Contingencies Disclosure [Text Block]	4. The Company’s purchase commitments at January 1, 2017

Note 5 - Employee Benefit Plans

Note 5 - Employee Benefit Plans	6 Months Ended
	Jan. 01, 2017
Notes to Financial Statements
Disclosure of Compensation Related Costs, Share-based Payments [Text Block]	5. The Company has two

Note 6 - New Accounting Standar

Note 6 - New Accounting Standards	6 Months Ended
	Jan. 01, 2017
Notes to Financial Statements
New Accounting Pronouncements and Changes in Accounting Principles [Text Block]	6. In January 2016, June 2019 In February 2016, 12 This amendment is effective for the Company’s fiscal year ending June 2020 There were no new accounting pronouncements during the quarter ended January 1, 2017, Company.

Note 7 - Reclassifications

Note 7 - Reclassifications	6 Months Ended
	Jan. 01, 2017
Notes to Financial Statements
Reclassifications [Text Block]	7. Certain previous year amounts have been reclassified to conform with current year presentation.

Significant Accounting Policies

Significant Accounting Policies (Policies)	6 Months Ended
	Jan. 01, 2017
Accounting Policies [Abstract]
Basis of Accounting, Policy [Policy Text Block]	The accompanying unaudited condensed consolidated financial statements of Bowl America Incorporated and subsidiaries (collectively, 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 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 July 3, 2016.

Note 2 - Investments (Tables)

Note 2 - Investments (Tables)	6 Months Ended
	Jan. 01, 2017
Notes Tables
Available-for-sale Securities [Table Text Block]	January 1 , 201 7 Description Fair Value Cost basis Unrealized Gain/ (loss) Short-term investments $ 486,306 $ 486,306 $ - Equity securities $ 5,932,982 $ 1,279,914 $ 4,653,068 Mutual funds $ 2,786,128 $ 2,763,538 $ 22,590 Ju ly 3, 201 6 Description Fair Value Cost basis Unrealized Gain (loss) 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]	January 1, 2017 Description Quoted Price for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Certificates of deposits $ - $ 486,306 $ - Equity securities 5,932,982 - - Mutual funds 2,786,128 - - Total $ 8,719,110 $ 486,306 $ - July 3, 2016 Description Quoted Price for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant 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	Jan. 01, 2017
DexMedia [Member]
Available-for-sale Securities, Gross Realized Gain (Loss)	$ 5,845
Maximum [Member]
Short-term Investments Maturities Term		1 year

Note 2 - Investments - Investme

Note 2 - Investments - Investments Schedule (Details) - USD ($)	Jan. 01, 2017	Jul. 03, 2016
Short-term Investments [Member]
Fair Value	$ 486,306	$ 484,558
Cost Basis	486,306	484,558
Unrealized Gain
Equity Securities [Member]
Fair Value	5,932,982	6,001,841
Cost Basis	1,279,914	1,285,759
Unrealized Gain	4,653,068	4,716,082
Mutual Fund [Member]
Fair Value	2,786,128	2,822,615
Cost Basis	2,763,538	2,713,860
Unrealized Gain	$ 22,590	$ 108,755

Note 2 - Investments - Fair Val

Note 2 - Investments - Fair Value Hierarchy (Details) - USD ($)	Jan. 01, 2017	Jul. 03, 2016
Quoted Price for Identical Assets	$ 8,719,110	$ 8,824,456
Fair Value, Inputs, Level 1 [Member]
Quoted Price for Identical Assets	8,719,110	8,824,456
Fair Value, Inputs, Level 2 [Member]
Quoted Price for Identical Assets	486,306	484,558
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	486,306	484,558
Equity Securities [Member] | Fair Value, Inputs, Level 1 [Member]
Quoted Price for Identical Assets	5,932,982	6,001,841
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	2,786,128	2,822,615
Mutual Funds [Member] | Fair Value, Inputs, Level 2 [Member]
Quoted Price for Identical Assets

Note 2 - Investments - Telecomm

Note 2 - Investments - Telecommunications Stocks Held (Details)	Jan. 01, 2017shares
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 3 - Note Payable (Details

Note 3 - Note Payable (Details Textual) - USD ($)	Jan. 01, 2017	Aug. 31, 2016	Jul. 03, 2016
Short-term Debt	$ 500,000	$ 500,000
London Interbank Offered Rate (LIBOR) [Member]
Short-term Debt, Percentage Bearing Variable Interest Rate		2.50%

Note 5 - Employee Benefit Pla22

Note 5 - Employee Benefit Plans (Details Textual)	6 Months Ended
	Jan. 01, 2017
Defined Contribution Plan Number of Plans	2