Bowl America (BWL.A) 10-Q 15 May 18 2018 Q3 Quarterly report Financial data

Document And Entity Information

Document And Entity Information - shares	9 Months Ended
	Apr. 01, 2018	May 10, 2018
Document Information [Line Items]
Entity Registrant Name	BOWL AMERICA INC
Entity Central Index Key	13,573
Trading Symbol	bwla
Current Fiscal Year End Date	--07-01
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	Apr. 1, 2018
Document Fiscal Year Focus	2,018
Document Fiscal Period Focus	Q3
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		9 Months Ended
	Apr. 01, 2018	Apr. 02, 2017	Apr. 01, 2018	Apr. 02, 2017
Operating Revenues:
Operating revenue	$ 7,626,219	$ 7,490,792	$ 19,258,494	$ 18,789,672
Operating Expenses:
Employee compensation and benefits	2,801,415	2,782,206	8,205,986	8,200,918
Depreciation and amortization	238,026	260,568	712,136	828,460
General and administrative	226,641	236,785	662,672	678,126
Total Operating Expenses	5,425,550	5,470,422	15,763,470	15,899,402
Gain on sale of assets		34,376		34,376
Operating Income	2,200,669	2,054,746	3,495,024	2,924,646
Interest, dividend and other income	107,130	110,801	292,596	315,703
Interest expense		980		6,296
Earnings before provision for income taxes	2,307,799	2,164,567	3,787,620	3,234,053
Provision for income taxes	705,000	757,700	552,895	1,132,000
Net Earnings	$ 1,602,799	$ 1,406,867	$ 3,234,725	$ 2,102,053
Earnings per share-basic & diluted (in dollars per share)	$ 0.31	$ 0.27	$ 0.63	$ 0.41
NET EARNINGS PER SHARE (in dollars per share)	$ 0.31	$ 0.27	$ 0.63	$ 0.41
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
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 [Member]
Operating Revenues:
Operating revenue	$ 5,423,321	$ 5,298,395	$ 13,656,336	$ 13,254,733
Operating Expenses:
Cost of goods and services sold	1,547,889	1,559,551	4,523,872	4,501,128
Food, Beverage, and Merchandise [Member]
Operating Revenues:
Operating revenue	2,202,898	2,192,397	5,602,158	5,534,939
Operating Expenses:
Cost of goods and services sold	$ 611,579	$ 631,312	$ 1,658,804	$ 1,690,770

Condensed Consolidated Stateme3

Condensed Consolidated Statements of Comprehensive Earnings (Unaudited) - USD ($)	3 Months Ended		9 Months Ended
	Apr. 01, 2018	Apr. 02, 2017	Apr. 01, 2018	Apr. 02, 2017
Net earnings	$ 1,602,799	$ 1,406,867	$ 3,234,725	$ 2,102,053
Other comprehensive earnings- net of tax
Unrealized (loss) gain on available-for-sale securities net of tax (benefit) of ($132,929) and ($81,372) for 13 weeks, and ($41,737) and ($140,372) for 39 weeks	(394,356)	(132,005)	(245,396)	(228,013)
Reclassification adjustment for loss (gain) included in Net Income net of tax (benefit) of ($2,167) and ($2,227)			(3,520)	3,619
Comprehensive earnings	$ 1,208,443	$ 1,274,862	$ 2,985,809	$ 1,877,659

Condensed Consolidated Stateme4

Condensed Consolidated Statements of Comprehensive Earnings (Unaudited) (Parentheticals) - USD ($)	3 Months Ended		9 Months Ended
	Apr. 01, 2018	Apr. 02, 2017	Apr. 01, 2018	Apr. 02, 2017
Unrealized gain (loss) on available-for-sale securities, tax	$ (132,929)	$ (81,372)	$ (41,737)	$ (140,372)
Reclassification adjustment for (gain) loss, tax			$ (2,167)	$ (2,227)

Condensed Consolidated Balance

Condensed Consolidated Balance Sheets (Current Period Unaudited) - USD ($)	Apr. 01, 2018	Jul. 02, 2017
CURRENT ASSETS:
Cash and cash equivalents	$ 3,120,867	$ 604,671
Short-term investments	2,051,498	2,951,315
Inventories	502,198	534,741
Prepaid expenses and other	491,514	555,687
TOTAL CURRENT ASSETS	6,166,077	4,646,414
LAND, BUILDINGS & EQUIPMENT Net of accumulated depreciation of $41,087,005 and $40,978,609	18,861,503	18,860,778
OTHER ASSETS:
Marketable securities	5,029,117	5,272,318
Cash surrender value-life insurance	772,326	772,326
Other	66,315	66,315
TOTAL OTHER ASSETS	5,867,758	6,110,959
TOTAL ASSETS	30,895,338	29,618,151
CURRENT LIABILITIES:
Accounts payable	596,866	673,786
Accrued expenses	758,498	1,069,668
Dividends payable	877,365	877,365
Income taxes payable	57,997	22,543
Other current liabilities	2,266,527	342,324
TOTAL CURRENT LIABILITIES	4,557,253	2,985,686
LONG-TERM DEFERRED COMPENSATION	18,413	18,413
DEFERRED INCOME TAXES	1,379,565	2,027,659
TOTAL LIABILITIES	5,955,231	5,031,758
COMMITMENTS AND CONTINGENCIES (Note 3)
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
Accumulated other comprehensive earnings-Unrealized gain on available-for-sale securities, net of tax	2,233,072	2,481,988
Retained earnings	14,336,830	13,734,200
TOTAL STOCKHOLDERS' EQUITY	24,940,107	24,586,393
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY	30,895,338	29,618,151
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 (Current Period Unaudited) (Parentheticals) - USD ($)	Apr. 01, 2018	Jul. 02, 2017
Land, buildings, and equipment, accumulated depreciation	$ 41,087,005	$ 40,978,609
Preferred stock, par value (in dollars per share)	$ 10	$ 10
Preferred stock, shares authorized (in shares)	2,000,000	2,000,000
Preferred stock, shares issued (in shares)	0	0
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 ($)	9 Months Ended
	Apr. 01, 2018	Apr. 02, 2017
Cash Flows From Operating Activities
Net earnings	$ 3,234,725	$ 2,102,053
Adjustments to reconcile net earnings to net cash provided by operating activities:
Depreciation and amortization	712,136	828,460
Gain on sale of assets		(34,376)
Loss on involuntary cancellation of available-for-sale securities		5,845
Gain on sale of available-for-sale securities	(8,531)
Provisional estimate for reduction in deferred tax from tax act	(604,190)
Changes in assets and liabilities
Decrease in inventories	32,543	52,295
Decrease in prepaid & other	64,173	117,874
(Decrease) increase in accounts payable	(76,920)	(102,190)
Decrease in accrued expenses	(311,170)	(434,184)
Increase (decrease) in income taxes payable	35,454	(134,763)
Increase in other current liabilities	1,924,203	1,917,874
Net cash provided by operating activities	5,002,423	4,318,888
Cash Flows From Investing Activities
Expenditures for land, building and equip	(712,861)	(238,948)
Sale of assets		40,750
Net purchases of short-term investments	(176)	(970,717)
Proceeds from sale of available-for-sale securities	1,000,000
Purchases of marketable securities	(141,095)	(66,811)
Net cash provided by (used in) Investing activities	145,868	(1,235,726)
Cash Flows From Financing Activities
Proceeds from note payable		500,000
Payment of note payable		(500,000)
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	2,516,196	451,067
Cash and Equivalents, Beginning of period	604,671	986,193
Cash and Equivalents, End of period	3,120,867	1,437,260
Supplemental Disclosures of Cash Flow Information Cash Paid During the Period for:
Interest		6,296
Income taxes	$ 1,119,800	$ 1,266,763

Note 1 - Basis for Presentation

Note 1 - Basis for Presentation	9 Months Ended
	Apr. 01, 2018
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 2, 2017 not 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 2, 2017.

Note 2 - Investments

Note 2 - Investments	9 Months Ended
	Apr. 01, 2018
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 and Treasury bills with maturities of generally three one April 1, 2018 July 2, 2017 April 1 , 201 8 Description Fair Value Cost basis Unrealized Gain/ (loss) Short-term investments $ 233,174 $ 233,174 $ - Equity securities $ 5,029,117 $ 1,279,914 $ 3,749,203 Mutual fund $ 1,818,323 $ 1,850,695 $ (32,372 ) Ju ly 2, 201 7 Description Fair Value Cost basis Unrealized Gain (loss) Short-term investments $ 133,922 $ 133,922 $ - Equity securities $ 5,272,318 $ 1,279,914 $ 3,992,404 Mutual fund $ 2,817,392 $ 2,800,144 $ 17,248 The fair values of the Company’s investments were determined as follows: April 1 , 201 8 Description Quoted Price for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Short term investments $ - $ 233,174 $ - Equity securities 5,029,117 - - Mutual fund 1,818,323 - - Total $ 6,847,440 $ 233,174 $ - Ju ly 2 , 201 7 Description Quoted Price for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Certificates of deposits $ - $ 133,922 $ - Equity securities 5,272,318 - - Mutual fund 2,817,392 - - Total $ 8,089,710 $ 133,922 $ - The shares of common stock included in the equity securities portfolio as of April 1, 2018 AT&T shares 82,112 Manulife shares 2,520 Uniti Group shares (formerly CSAL) 815 NCR shares 774 Teradata shares 774 Vodafone shares 6,471 CenturyLink shares 4,398 Frontier Communications shares 300 Sprint shares 40,000 Verizon shares 31,904 Windstream shares 679 On July 10, 2017, 1 15 300 4,508. August 1, 2016 no $5,845 Communications Sales & Leasing Inc (“CSAL”) changed its corporate name to Uniti Group Inc (“UNIT”) effective February 27, 2017. The Mutual fund included in the table above is Vanguard GNMA Admiral Shares #536 August 2017 $1,000,000 August 2017

Note 3 - Commitments and Contin

Note 3 - Commitments and Contingencies	9 Months Ended
	Apr. 01, 2018
Notes to Financial Statements
Commitments and Contingencies Disclosure [Text Block]	3. The Company’s purchase commitments at April 1, 2018

Note 4 - Employee Benefit Plans

Note 4 - Employee Benefit Plans	9 Months Ended
	Apr. 01, 2018
Notes to Financial Statements
Disclosure of Compensation Related Costs, Share-based Payments [Text Block]	4. The Company has two no

Note 5 - Income Taxes

Note 5 - Income Taxes	9 Months Ended
	Apr. 01, 2018
Notes to Financial Statements
Income Tax Disclosure [Text Block]	5. On December 22, 2017, 35 21 January 1, 2018. 2018, 27.5 21 2019 The Tax Act also puts in place new tax laws that may 2019, not one may may During the second 2018, 604,190 $604,190 11.7

Note 6 - New Accounting Standar

Note 6 - New Accounting Standards	9 Months Ended
	Apr. 01, 2018
Notes to Financial Statements
New Accounting Pronouncements and Changes in Accounting Principles [Text Block]	6. In January 2016, June 2019 In February 2016, 12 June 2020 In February 2018, 2018 02, 220 December 15, 2018 not

Note 7 - Reclassifications

Note 7 - Reclassifications	9 Months Ended
	Apr. 01, 2018
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)	9 Months Ended
	Apr. 01, 2018
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 2, 2017 not 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 2, 2017.

Note 2 - Investments (Tables)

Note 2 - Investments (Tables)	9 Months Ended
	Apr. 01, 2018
Notes Tables
Available-for-sale Securities [Table Text Block]	April 1 , 201 8 Description Fair Value Cost basis Unrealized Gain/ (loss) Short-term investments $ 233,174 $ 233,174 $ - Equity securities $ 5,029,117 $ 1,279,914 $ 3,749,203 Mutual fund $ 1,818,323 $ 1,850,695 $ (32,372 ) Ju ly 2, 201 7 Description Fair Value Cost basis Unrealized Gain (loss) Short-term investments $ 133,922 $ 133,922 $ - Equity securities $ 5,272,318 $ 1,279,914 $ 3,992,404 Mutual fund $ 2,817,392 $ 2,800,144 $ 17,248
Fair Value, Assets Measured on Recurring Basis [Table Text Block]	April 1 , 201 8 Description Quoted Price for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Short term investments $ - $ 233,174 $ - Equity securities 5,029,117 - - Mutual fund 1,818,323 - - Total $ 6,847,440 $ 233,174 $ - Ju ly 2 , 201 7 Description Quoted Price for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Certificates of deposits $ - $ 133,922 $ - Equity securities 5,272,318 - - Mutual fund 2,817,392 - - Total $ 8,089,710 $ 133,922 $ -
Schedule Of Telecommunications Stocks Held [Table Text Block]	AT&T shares 82,112 Manulife shares 2,520 Uniti Group shares (formerly CSAL) 815 NCR shares 774 Teradata shares 774 Vodafone shares 6,471 CenturyLink shares 4,398 Frontier Communications shares 300 Sprint shares 40,000 Verizon shares 31,904 Windstream shares 679

Note 2 - Investments (Details T

Note 2 - Investments (Details Textual)	Jul. 10, 2017shares	Aug. 01, 2016USD ($)	Aug. 31, 2017USD ($)	Apr. 01, 2018shares	Jul. 09, 2017shares
DexMedia [Member]
Available-for-sale Securities, Gross Realized Gain (Loss), Total		$ (5,845)
Mutual Fund [Member]
Redemption of Securities to Meet Dividend Payment			$ 1,000,000
Frontier Communications [Member]
Investment Owned, Balance, Shares | shares	300			300	4,508
Frontier Communications [Member] | Reverse Stock Split [Member]
Stockholders' Equity Note, Stock Split, Conversion Ratio	15

Note 2 - Investments - Summary

Note 2 - Investments - Summary of Investments (Details) - USD ($)	Apr. 01, 2018	Jul. 02, 2017
Short-term Investments [Member]
Fair Value	$ 233,174	$ 133,922
Cost Basis	233,174	133,922
Unrealized Gain
Equity Securities [Member]
Fair Value	5,029,117	5,272,318
Cost Basis	1,279,914	1,279,914
Unrealized Gain	3,749,203	3,992,404
Mutual Fund [Member]
Fair Value	1,818,323	2,817,392
Cost Basis	1,850,695	2,800,144
Unrealized Gain		$ 17,248
Unrealized Loss	$ (32,372)

Note 2 - Investments - Fair Val

Note 2 - Investments - Fair Value Hierarchy (Details) - USD ($)	Apr. 01, 2018	Jul. 02, 2017
Fair Value, Inputs, Level 1 [Member]
Fair Value Hierarchy	$ 6,847,440	$ 8,089,710
Fair Value, Inputs, Level 2 [Member]
Fair Value Hierarchy	233,174	133,922
Fair Value, Inputs, Level 3 [Member]
Fair Value Hierarchy
Short-term Investments [Member]
Fair Value Hierarchy	233,174	133,922
Short-term Investments [Member] | Fair Value, Inputs, Level 1 [Member]
Fair Value Hierarchy
Short-term Investments [Member] | Fair Value, Inputs, Level 2 [Member]
Fair Value Hierarchy	233,174
Short-term Investments [Member] | Fair Value, Inputs, Level 3 [Member]
Fair Value Hierarchy
Certificates of Deposit [Member] | Fair Value, Inputs, Level 1 [Member]
Fair Value Hierarchy
Certificates of Deposit [Member] | Fair Value, Inputs, Level 2 [Member]
Fair Value Hierarchy		133,922
Certificates of Deposit [Member] | Fair Value, Inputs, Level 3 [Member]
Fair Value Hierarchy
Equity Securities [Member]
Fair Value Hierarchy	5,029,117	5,272,318
Equity Securities [Member] | Fair Value, Inputs, Level 1 [Member]
Fair Value Hierarchy	5,029,117	5,272,318
Equity Securities [Member] | Fair Value, Inputs, Level 2 [Member]
Fair Value Hierarchy
Equity Securities [Member] | Fair Value, Inputs, Level 3 [Member]
Fair Value Hierarchy
Mutual Fund [Member]
Fair Value Hierarchy	1,818,323	2,817,392
Mutual Fund [Member] | Fair Value, Inputs, Level 1 [Member]
Fair Value Hierarchy	1,818,323	2,817,392
Mutual Fund [Member] | Fair Value, Inputs, Level 2 [Member]
Fair Value Hierarchy
Mutual Fund [Member] | Fair Value, Inputs, Level 3 [Member]
Fair Value Hierarchy

Note 2 - Investments - Telecomm

Note 2 - Investments - Telecommunications Stocks Held (Details) - shares	Apr. 01, 2018	Jul. 10, 2017	Jul. 09, 2017
ATT [Member]
Investment (in shares)	82,112
Manulife [Member]
Investment (in shares)	2,520
Uniti Shares [Member]
Investment (in shares)	815
NCR [Member]
Investment (in shares)	774
Teradata [Member]
Investment (in shares)	774
Vodafone [Member]
Investment (in shares)	6,471
CenturyLink [Member]
Investment (in shares)	4,398
Frontier Communications [Member]
Investment (in shares)	300	300	4,508
Sprint [Member]
Investment (in shares)	40,000
Verizon [Member]
Investment (in shares)	31,904
Windstream [Member]
Investment (in shares)	679

Note 4 - Employee Benefit Pla21

Note 4 - Employee Benefit Plans (Details Textual)	9 Months Ended
	Apr. 01, 2018
Defined Contribution Plan Number of Plans	2

Note 5 - Income Taxes (Details

Note 5 - Income Taxes (Details Textual) - USD ($)	3 Months Ended	6 Months Ended		9 Months Ended		12 Months Ended
	Dec. 31, 2017	Jul. 01, 2018	Dec. 31, 2017	Apr. 01, 2018	Apr. 02, 2017	Jun. 30, 2019	Jul. 01, 2018
Effective Income Tax Rate Reconciliation, at Federal Statutory Income Tax Rate, Percent			35.00%
Income Tax Expense (Benefit), Continuing Operations, Adjustment of Deferred Tax (Asset) Liability	$ (604,190)			$ (604,190)
Earnings Per Share, Adjustment Due to Change in Enacted Tax Rate	$ 11.70
Scenario, Forecast [Member]
Effective Income Tax Rate Reconciliation, at Federal Statutory Income Tax Rate, Percent		21.00%				21.00%	27.50%