EXHIBIT 20
For Immediate Release | September 27, 2018 |
BOWL AMERICA REPORTS 2019 FISCAL YEAR EARNINGS
Bowl America Incorporated today reported earnings per share of $.59 for its fiscal year ended June 30, 2019, compared to $.73 in the prior fiscal year ended July 1, 2018. Per share earnings for the fiscal 2019 fourth quarter were $.05, compared to $.10 in the fiscal 2018 fourth quarter.
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The Company believes that good weekend weather during in the fiscal 2019 fourth quarter contributed to a decrease in traffic. Fiscal 2019 reflects the first full year under the 21% federal tax rate and the first year of the FASB required change reclassifying unrealized gain or loss on securities to current earnings from Stockholders’ Equity. Fiscal 2018 included a one time tax benefit of approximately $.13 per share and a blended corporate tax rate of 27.5% for the 2018 fiscal year.
The Company did not renew its lease on Bowl America Manassas, a non-producing center which closed July 28, 2019, leaving only one leased bowling center. One-time expenses associated with the exit from the location after 60 years will negatively impact the first quarter of fiscal 2020.
A more detailed explanation of results is available in the Company’s Form 10-K filing available through the website www.bowlamericainc.com. Bowl America operates 17 bowling centers and its Class A common stock trades on the NYSE American under the symbol BWLA.
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BOWL AMERICA INCORPORATED
Results of Operations
| | | Thirteen | | | Thirteen | | | Fifty-two | | | Fifty-two | |
| | | Weeks Ended | | | Weeks Ended | | | Weeks Ended | | | Weeks Ended | |
| | | 06/30/19 | | | 07/01/18 | | | 06/30/19 | | | 07/01/18 | |
Operating Revenues | | | | | | | | | | | | | | | | |
Bowling and other | | $ | 3,639,410 | | | $ | 3,829,858 | | | $ | 17,140,472 | | | $ | 17,486,194 | |
Food, beverage and merchandise sales | | | 1,567,056 | | | | 1,682,532 | | | | 7,278,154 | | | | 7,284,690 | |
| | | | 5,206,466 | | | | 5,512,390 | | | | 24,418,626 | | | | 24,770,884 | |
Operating expenses excluding depreciation and amortization | | | 4,947,073 | | | | 4,754,199 | | | | 20,219,406 | | | | 19,805,533 | |
Depreciation and amortization | | | 263,536 | | | | 233,970 | | | | 982,760 | | | | 946,106 | |
(Loss) gain on disposition of assets | | | (1,359 | ) | | | (3,306 | ) | | | (1,359 | ) | | | (3,306 | ) |
Interest, dividend and other income | | | 105,795 | | | | 94,935 | | | | 403,534 | | | | 387,531 | |
Change in value of investments | | | 157,164 | | | | - | | | | 331,149 | | | | - | |
Earnings (loss) before taxes | | | 257,457 | | | | 615,850 | | | | 3,949,784 | | | | 4,403,470 | |
| | | | | | | | | | | | | | | | | |
Net Earnings | | | 246,106 | | | | 551,260 | | | | 3,049,172 | | | | 3,785,985 | |
Comprehensive Earnings | | $ | 246,106 | | | $ | 420,933 | | | $ | 3,049,172 | | | $ | 3,406,742 | |
| | | | | | | | | | | | | | | | | |
Weighted average shares outstanding | | | 5,160,971 | | | | 5,160,971 | | | | 5,160,971 | | | | 5,160,971 | |
| | | | | | | | | | | | | | | | | |
EARNINGS PER SHARE | | | .05 | | | | .10 | | | | .59 | | | | .73 | |
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SUMMARY OF FINANCIAL POSITION
Dollars in Thousands
| | | 06/30/19 | | | 07/01/18 | |
ASSETS | | | | | | | | |
Total current assets including cash and short-term investment of $703 and $1,341 | | $ | 9,433 | | | $ | 9,426 | |
Property and other assets | | | 18,956 | | | | 19,483 | |
TOTAL ASSETS | | $ | 28,389 | | | $ | 28,909 | |
| | | | | | | | | |
LIABILITIES AND STOCKHOLDERS' EQUITY | | | | | | | | |
Total current liabilities | | $ | 3,065 | | | $ | 3,096 | |
Deferred tax and other liabilities | | | 1,404 | | | | 1,329 | |
Stockholders' equity | | | 23,920 | | | | 24,484 | |
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY | | $ | 28,389 | | | $ | 28,909 | |
