Document and Entity Information
Document and Entity Information - USD ($) $ in Thousands | 12 Months Ended | ||
Nov. 01, 2019 | Jan. 24, 2020 | Apr. 19, 2019 | |
Deferred Tax [Member] | |||
Entity Registrant Name | BRIDGFORD FOODS CORP | ||
Entity Central Index Key | 0000014177 | ||
Document Type | 10-K | ||
Document Period End Date | Nov. 1, 2019 | ||
Amendment Flag | false | ||
Current Fiscal Year End Date | --11-01 | ||
Entity a Well-known Seasoned Issuer | No | ||
Entity a Voluntary Filer | No | ||
Entity Current Reporting Status | Yes | ||
Entity Interactive Data Current | Yes | ||
Entity Filer Category | Non-accelerated Filer | ||
Entity Small Business Flag | true | ||
Entity Emerging Growth Company | false | ||
Entity Ex Transition Period | false | ||
Entity Shell Company | false | ||
Entity Public Float | $ 41,597,000 | ||
Entity Common Stock, Shares Outstanding | 9,076,832 | ||
Document Fiscal Period Focus | FY | ||
Document Fiscal Year Focus | 2019 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Nov. 01, 2019 | Nov. 02, 2018 |
Current assets: | ||
Cash and cash equivalents | $ 3,478 | $ 8,179 |
Accounts receivable, less allowance for doubtful accounts of $31 and $33, respectively and promotional allowances of $2,974 and $2,122, respectively | 21,875 | 20,293 |
Inventories, net | 26,367 | 23,413 |
Prepaid expenses | 1,048 | 1,331 |
Total current assets | 52,768 | 53,216 |
Property, plant and equipment, net of accumulated depreciation and amortization of $54,015 and $66,337, respectively | 54,346 | 32,638 |
Other non-current assets | 12,295 | 11,630 |
Deferred income taxes | 4,047 | 4,010 |
Total assets | 123,456 | 101,494 |
Current liabilities: | ||
Accounts payable | 7,993 | 7,655 |
Accrued payroll, advertising and other expenses | 5,480 | 4,577 |
Income taxes payable | 90 | 155 |
Current notes payable - equipment (Note 5) | 1,943 | |
Current portion of non-current liabilities | 4,434 | 5,980 |
Total current liabilities | 19,940 | 18,367 |
Long-term notes payable - equipment (Note 5) | 11,804 | |
Non-current liabilities | 25,228 | 17,447 |
Total liabilities | 56,972 | 35,814 |
Contingencies and commitments (Notes 3, 5 and 6) | ||
Shareholders' equity: | ||
Preferred stock, without par value; Authorized, - 1,000 shares; issued and outstanding - none | ||
Common stock, $1.00 par value; Authorized, - 20,000 shares; issued and outstanding - 9,076 | 9,134 | 9,134 |
Capital in excess of par value | 8,298 | 8,298 |
Retained earnings | 72,432 | 65,948 |
Accumulated other comprehensive loss | (23,380) | (17,700) |
Total shareholders' equity | 66,484 | 65,680 |
Total liabilities and shareholders' equity | $ 123,456 | $ 101,494 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands | Nov. 01, 2019 | Nov. 02, 2018 |
Statement of Financial Position [Abstract] | ||
Accounts receivable, allowance for doubtful accounts | $ 31 | $ 33 |
Accounts receivable, allowance for promotional allowances | 2,974 | 2,122 |
Property, plant and equipment, accumulated depreciation | $ 54,015 | $ 66,337 |
Preferred stock, par value | ||
Preferred stock, shares authorized | 1,000 | 1,000 |
Preferred stock, shares issued | ||
Preferred stock, shares outstanding | ||
Common stock, par value | $ 1 | $ 1 |
Common stock, shares authorized | 20,000 | 20,000 |
Common stock, shares issued | 9,076 | 9,076 |
Common stock, shares outstanding | 9,076 | 9,076 |
Consolidated Statements of Oper
Consolidated Statements of Operations - USD ($) $ in Thousands | 12 Months Ended | |
Nov. 01, 2019 | Nov. 02, 2018 | |
Income Statement [Abstract] | ||
Net sales | $ 188,785 | $ 174,257 |
Cost of products sold | 127,121 | 117,751 |
Gross margin | 61,664 | 56,506 |
Selling, general and administrative expenses | 52,837 | 49,929 |
Loss (gain) on sale of property, plant and equipment | (290) | 6,236 |
Income before taxes | 8,537 | 12,813 |
Provision for income taxes | 2,053 | 6,296 |
Net income | $ 6,484 | $ 6,517 |
Basic earnings per share | $ 0.71 | $ 0.72 |
Shares used to compute basic earnings per share | 9,076,832 | 9,076,832 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income - USD ($) $ in Thousands | 12 Months Ended | |
Nov. 01, 2019 | Nov. 02, 2018 | |
Income Statement [Abstract] | ||
Net income | $ 6,484 | $ 6,517 |
Other comprehensive (loss) income from defined benefit plans | (6,632) | 3,610 |
Actuarial (loss) gain | (790) | 710 |
Prior service cost | (50) | (174) |
Other comprehensive (loss) income from other postretirement benefit plans, net | (840) | 536 |
Other comprehensive (loss) income, before taxes | (7,472) | 4,146 |
Tax benefit (expense) on other comprehensive income | 1,792 | (1,021) |
Change in other comprehensive (loss) income, net of tax | (5,680) | 3,125 |
Comprehensive income, net of tax | $ 804 | $ 9,642 |
Consolidated Statements of Shar
Consolidated Statements of Shareholders' Equity - USD ($) $ in Thousands | Common Stock [Member] | Capital in Excess of Par Value [Member] | Retained Earnings [Member] | Accumulated Other Comprehensive Loss [Member] | Total |
Balance at Nov. 03, 2017 | $ 9,134 | $ 8,298 | $ 56,902 | $ (18,296) | $ 56,038 |
Balance, shares at Nov. 03, 2017 | 9,076 | ||||
Net income | 6,517 | 6,517 | |||
ASU 2018-02 (Notes 1 and 4) | 2,529 | (2,529) | |||
Net change in defined benefit plans and other benefit plans, net of tax | 3,125 | 3,125 | |||
Balance at Nov. 02, 2018 | $ 9,134 | 8,298 | 65,948 | (17,700) | 65,680 |
Balance, shares at Nov. 02, 2018 | 9,076 | ||||
Net income | 6,484 | 6,484 | |||
Net change in defined benefit plans and other benefit plans, net of tax | (5,680) | (5,680) | |||
Balance at Nov. 01, 2019 | $ 9,134 | $ 8,298 | $ 72,432 | $ (23,380) | $ 66,484 |
Balance, shares at Nov. 01, 2019 | 9,076 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 12 Months Ended | |
Nov. 01, 2019 | Nov. 02, 2018 | |
Cash flows from operating activities: | ||
Net income | $ 6,484 | $ 6,517 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Depreciation | 4,153 | 3,940 |
Provision for losses on accounts receivable | 44 | 24 |
(Provision for) reduction in promotional allowances | (852) | 94 |
Loss (gain) on sale of property, plant and equipment | 290 | (6,236) |
Deferred income taxes, net | 1,889 | 4,940 |
Changes in operating assets and liabilities: | ||
Accounts receivable | (774) | (1,263) |
Inventories | (2,954) | (397) |
Prepaid expenses | 283 | 219 |
Refundable income taxes | ||
Other non-current assets | (663) | 1,549 |
Accounts payable | 338 | 2,291 |
Accrued payroll, advertising and other expenses | 903 | 22 |
Income taxes payable | (65) | (61) |
Current portion of non-current liabilities | (1,643) | 295 |
Non-current liabilities | (184) | (3,669) |
Net cash provided by operating activities | 7,247 | 8,265 |
Cash used in investing activities: | ||
Proceeds from sale of property, plant and equipment | 61 | 6,035 |
Additions to property, plant and equipment | (25,739) | (18,147) |
Net cash used in investing activities | (25,678) | (12,112) |
Cash used in financing activities: | ||
Payment of capital lease obligations | (17) | (83) |
Proceeds from bank borrowings | 17,000 | |
Repayments of bank borrowings | (3,253) | |
Net cash provided by (used in) financing activities | 13,730 | (83) |
Net decrease in cash and cash equivalents | (4,701) | (3,930) |
Cash and cash equivalents at beginning of year | 8,179 | 12,109 |
Cash and cash equivalents at end of year | 3,478 | 8,179 |
Supplemental disclosure of cash flow information: | ||
Cash paid for income taxes | 697 | 1,726 |
Cash paid for interest | 403 | |
Transportation equiptment financed by lease obligations | $ 473 |
The Company and Summary of Sign
The Company and Summary of Significant Accounting Policies | 12 Months Ended |
Nov. 01, 2019 | |
Accounting Policies [Abstract] | |
The Company and Summary of Significant Accounting Policies | NOTE 1 - The Company and Summary of Significant Accounting Policies: Bridgford Foods Corporation was organized in 1952. We originally began operations in 1932 as a retail meat market in San Diego, California and evolved into a meat wholesaler for hotels and restaurants, a distributor of frozen food products, a processor and packer of meat, and a manufacturer and distributor of frozen food products for sale on a retail and wholesale basis. We and our subsidiaries are primarily engaged in the manufacturing, marketing and distribution of an extensive line of frozen, refrigerated, and snack food products throughout the United States. The consolidated financial statements include the accounts of the Company and its subsidiaries, all of which are wholly-owned. All inter-company transactions have been eliminated. Use of estimates and assumptions The preparation of financial statements in conformity with generally accepted accounting principles requires management to make certain estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements, as well as the reported revenues and expenses during the respective reporting periods. Actual results could differ from those estimates. Amounts estimated related to liabilities for pension benefits, self-insured workers’ compensation and employee healthcare benefits are subject to inherent uncertainties and these estimated liabilities may ultimately settle at amounts which may vary from current estimates. Other areas with underlying estimates include realization of deferred tax assets, cash surrender or contract value of life insurance policies, promotional allowances and the allowance for doubtful accounts and inventory reserves. Management believes its current estimates are reasonable and based on the best information available at the time. We test long-lived assets for recoverability whenever events or changes in circumstances indicate that the carrying amount may not be recoverable. If an impairment is indicated, we measure the fair value of assets to determine if and when adjustments are recorded. Subsequent events Management has evaluated events subsequent to November 1, 2019 through the date the accompanying consolidated financial statements were filed with the Securities and Exchange Commission for transactions and other events that may require adjustment of and/or disclosure in such financial statements. On December 19, 2019, we entered into a third master collateral loan and security agreement with Wells Fargo Bank, N.A for $3,750 in equipment financing. Pursuant to the loan agreement, we borrowed $3,750 to purchase specific equipment for our new Chicago processing facility at a fixed rate of 3.70% per annum. The loan term is seven years and is secured by the purchased equipment. The funds were received on December 23, 2019. The master collateral loan and security agreement with Wells Fargo Bank, N.A. contains various affirmative and negative covenants that limit the use of funds and define other provisions of the loan. The main financial covenants are listed below: ● Total Liabilities divided by Tangible Net Worth not greater than 2.5 to 1.0 at each fiscal quarter, ● Quick Ratio not less than 1.0 to 1.0 at each fiscal quarter end, ● Net income after taxes not less than one dollar on a quarterly basis, determined as of each fiscal quarter end. The Company maintains a line of credit with Wells Fargo Bank, N.A. that expires on March 1, 2020. Under the terms of this line of credit, we may borrow up to $7,500 at an interest rate equal to the bank’s prime rate or LIBOR plus 1.5%. The Company borrowed $2,000 under this line of credit on November 24, 2019. The Company borrowed an additional 2.500,000 under the line of credit on January 24, 2020. Based on management’s review, no other material events were identified that require adjustment to the financial statements or additional disclosure. Accounts Receivable Accounts receivable are recorded at net realizable value. The value is presented net of allowance for doubtful accounts and promotional incentives. Our accounts receivable consists mainly of trade receivables from customer sales. We evaluate the collectability of our accounts receivable based on a several factors. The provision for doubtful accounts receivable is based on historical trends and current collectability risk. Our provision for doubtful accounts was $31 and $33 as of November 1, 2019 and November 2, 2018, respectively. Concentrations of credit risk Our credit risk is diversified across a broad range of customers and geographic regions. Losses due to credit risk have recently been immaterial. The carrying amount of cash equivalents, accounts and other receivables, accounts payable and accrued liabilities approximate fair market value due to the short maturity of these instruments. We maintain cash balances at financial institutions, which may at times exceed the amounts insured by the Federal Deposit Insurance Corporation. Management does not believe there is significant credit risk associated with these financial institutions. Sales to Wal-Mart® comprised 35.7% of revenues in fiscal year 2019 and 31.9% of total accounts receivable was due from Wal-Mart® as of November 1, 2019. Sales to Wal-Mart® comprised 36.4% of revenues in fiscal year 2018 and 31.3% of total accounts receivable was due from Wal-Mart® as of November 2, 2018. Sales to Dollar General® comprised 11.1% of revenues in fiscal year 2019 and 21.7% of total accounts receivable was due from Dollar General® as of November 1, 2019. Sales to Dollar General® comprised 9.6% of revenues in fiscal year 2018 and 23.5% of total accounts receivable was due from Dollar General® as of November 2, 2018. Business segments Our company and subsidiaries operate in two business segments - the processing and distribution of frozen foods products, and the processing and distribution of snack food products. See Note 7 for further information. Fiscal year We maintain our accounting records on a 52-53-week fiscal basis ending on the Friday closest to October 31. As part of the regular accounting cycle, fiscal years 2019 and 2018 included 52 weeks. Revenues The Company recognizes revenue for the sale of the product at the point in time when our performance obligation has been satisfied and control of the product has transferred to our customer, which generally occurs upon shipment, pickup or delivery to a customer based on terms of the sale. Contracts with customers are typically short-term in nature with completion of a single performance obligation. Product is sold to foodservice, retail, institutional and other distribution channels. Products are delivered to customers primarily through our own long-haul fleet, common carrier or through a Company owned direct store delivery system. These delivery costs, $5,012 and $3,883 for fiscal years 2019 and 2018, respectively, are included in selling, general and administrative expenses in the accompanying consolidated financial statements. Shipping and handling that occurs after the customer has obtained control of the product is recorded as a fulfillment cost rather than an additional assured service. Costs paid to third party brokers to obtain contracts are recognized as part of selling expenses. Other sundry items in context of the contract are also recognized as selling expense. Any taxes collected on behalf of the government are excluded from net revenue. We record revenue at transaction price which is measured as the amount of consideration we anticipate to receive in exchange for providing product to our customers. Revenue is recognized as the net amount estimated to be received after deducting estimated or known amounts including variable consideration for discounts, trade allowances, consumer incentives, coupons, volume-based incentives, cooperative advertising, product returns and other such programs. Promotional allowances, including customer incentive and trade promotion activities, are recorded as a reduction to sales based on amounts estimated being due to customers, based primarily on historical utilization and redemption rates. Estimates are reviewed regularly until incentives or product returns are realized and the result of any such adjustments are known. Promotional allowances deducted from sales for fiscal years 2019 and 2018 were $11,105 and $8,840, respectively. Advertising expenses Advertising and other promotional expenses are recorded as selling, general and administrative expenses. Advertising expenses for fiscal years 2019 and 2018 were $2,574 and $2,713, respectively. Cash and cash equivalents We consider all investments with original maturities of three months or less to be cash equivalents. Cash equivalents include money market funds and treasury bills. Cash equivalents totaled $3,478 as of November 1, 2019 and $8,179 as of November 2, 2018. All material cash and cash equivalents as of November 1, 2019 were held at Wells Fargo Bank N.A. Fair value measurements We classify levels of inputs to measure the fair value of financial assets as follows: ● Level 1 inputs: Level 1 inputs are quoted market prices in active markets for identical assets or liabilities that are accessible at the measurement date. ● Level 2 inputs: Level 2 inputs are from other than quoted market prices included in Level 1 that are observable for the asset or liability, either directly or indirectly. ● Level 3 inputs: Level 3 inputs are unobservable and should be used to measure fair value to the extent that observable inputs are not available. The hierarchy noted above requires us to minimize the use of unobservable inputs and to use observable market data, if available, when determining fair value. The Company does not have any assets or liabilities measured at fair value on a recurring or non-recurring basis for the fiscal years ended November 1, 2019 and November 2, 2018. Inventories Inventories are valued at the lower of cost (which approximates actual cost on a first-in, first-out basis) or net realizable value. Inventories include the cost of raw materials, labor and manufacturing overhead. We regularly review inventory quantities on hand and write down any excess or obsolete inventories to net realizable value. An inventory reserve is created when potentially slow-moving or obsolete inventories are identified in order to reflect the appropriate inventory value. Changes in economic conditions, production requirements, and lower than expected customer demand could result in additional obsolete or slow-moving inventory that cannot be sold or must be sold at reduced prices and could result in additional reserve provisions. Property, plant and equipment Property, plant and equipment are carried at cost less accumulated depreciation. Major renewals and improvements are charged to the asset accounts while the cost of maintenance and repairs is charged to expense as incurred. When assets are sold or otherwise disposed of, the cost and accumulated depreciation are removed from the respective accounts and the resulting gain or loss is credited or charged to income. Depreciation is computed on a straight-line basis over 10 to 20 years for buildings and improvements, 5 to 10 years for machinery and equipment, and 3 to 5 years for transportation equipment. We are building a processing plant from the ground up and as such have attributed long useful lives accordingly to these types of assets employed at the new facility in Chicago. Leases Leased property and equipment that meet lease criteria are capitalized at the lower of the present value of the minimum payments required under the lease or the fair value of the asset at inception of the lease and are included within property, plant and equipment on the consolidated balance sheet. If any, obligations under capital leases are accounted for as current and noncurrent liabilities on the consolidated balance sheet. Amortization is calculated on a straight-line method based upon the shorter of the estimated useful life of the asset or the lease term. Life insurance policies We record the cash surrender value or contract value for life insurance policies as an adjustment of premiums paid in determining the expense or income to be recognized under the contract for the period. The cash surrender value is included in other non-current assets in the accompanying consolidated balance sheets. Income taxes Deferred taxes are provided for items whose financial and tax bases differ. A valuation allowance is provided against deferred tax assets when it is expected that it is more likely than not that the related asset will not be fully realized. The determination as to whether or not a deferred tax asset can be fully realized is subject to a significant degree of judgment, based at least partially upon a projection of future taxable income, which takes into consideration past and future trends in profitability, customer demand, supply costs, and multiple other factors, which are inherently difficult to predict. We provide tax accruals for federal, state and local exposures relating to audit results, tax planning initiatives and compliance responsibilities. The development of these accruals requires judgments about tax issues, potential outcomes and timing. (See Note 4 to the Consolidated Financial Statements). Although the outcome of these tax audits is uncertain, in management’s opinion adequate provisions for income taxes have been made for potential liabilities emanating from these reviews. If actual outcomes differ materially from these estimates, they could have a material impact on our results of operations. Stock-based compensation We measure and recognize compensation expense for all share-based payments to employees, including grants of employee stock options, in the financial statements based on the fair value at the date of the grant. We have not issued, awarded, granted or entered into any stock-based payment agreements since April 29, 1999, and no such expense was recognized in fiscal years 2019 and 2018. Comprehensive income or loss Comprehensive income or loss consists of net income and additional minimum pension liability adjustments. Recently issued accounting pronouncements and regulations In May 2014, the Financial Accounting Standards Board (the “FASB”) issued ASU 2014-09 “Revenue from Contracts with Customers” to supersede previous revenue recognition guidance under current U.S. GAAP. The guidance presents a single five-step model for comprehensive revenue recognition that requires an entity to recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. Two options are available for implementation of the standard which are either the retrospective approach or cumulative effect adjustment approach. The guidance become effective for annual reporting periods that begin after December 15, 2017, including interim periods within that reporting period, with early adoption permitted. The Company adopted the modified retrospective transition method beginning with the first quarter of fiscal 2019. The adoption did not have a material impact on our consolidated financial statements. For further information please refer to Part I, Item 1, Notes to Consolidated Financial Statements under Revenues. Disaggregated revenue is disclosed in Part I, Item 1, Notes to Consolidated Financial Statements, Note 7: Segment Information. In January 2016, the FASB issued ASU 2016-01, “Recognition and Measurement of Financial Assets and Financial Liabilities” that requires most equity investments to be measured at fair value and subsequent changes in fair value to be recognized in net income. The guidance covers presentation and disclosure requirements of financial liabilities and the classification and measurement of financial instruments. The guidance is effective for annual reporting periods and interim periods within those annual reporting periods beginning after December 15, 2017. We adopted this guidance in the first quarter of fiscal 2019. The adoption did not have a material impact on our consolidated financial statements. In February 2016, the FASB issued ASU 2016-02, “Leases”, which requires a lessee to recognize assets and liabilities with lease terms of more than 12 months. Both capital and operating leases are to be recognized on the balance sheet. The guidance is effective for annual reporting periods beginning after December 15, 2018 and interim periods within fiscal years beginning after December 15, 2019 which is our first quarter of fiscal 2020. We have analyzed all lease transactions during fiscal year 2019. The Company elected not to reassess expired contracts or adjust comparative periods. The Company determined that no change to current accounting treatment is warranted due to the underlying nature of our leases. In the case of month-to-month lease or rental agreements with terms of 12 months or less, the Company made an accounting policy election to not recognize lease assets and liabilities. The Company performed a detailed analysis and determined that there were no indicators of longer-term leases at this time. The application of this pronouncement will result in additional disclosures detailing our lease arrangements. The Company continues to evaluate this statement and its impact on its results of operations or financial position but do not expect a material impact on our consolidated financial statements. In October 2016, the FASB issued ASU 2016-16, “Income Taxes – Classification of Certain Cash Receipts and Cash Payments”. The guidance involves eight specific cash flow issues and aims to unify accounting for these transactions. The guidance becomes effective for annual reporting periods beginning after December 15, 2017 with early adoption permitted. The Company adopted this guidance during the first quarter of fiscal 2019 and it did not have a material impact on our consolidated financial statements. In March 2017, the FASB issued ASU 2017-07, “Compensation – Retirement Benefits”. The guidance separates service cost from other pension cost components changing the presentation of net periodic benefit cost related to company sponsored defined benefit or other postretirement benefits. The guidance becomes effective for annual and interim reporting periods beginning after December 15, 2017 with early adoption permitted. Additional disclosure reconciling net periodic benefit cost is detailed in Item I, Notes to the Consolidated Financial Statements under Note 3, Retirement and Other Benefit Plans. The Company adopted this guidance during the first quarter of fiscal 2019 and it did not have a material impact on our consolidated financial statements. In February 2018, the FASB issued ASU 2018-02, “Income Statement-Reporting Comprehensive Income (Topic 220): Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income”. The guidance allows reclassification from accumulated other comprehensive income to retained earnings for stranded tax effects resulting from the application of the U.S. Tax Cuts and Jobs Act. The guidance is effective for annual and interim reporting periods beginning after December 15, 2018 with early adoption permitted. The Company elected to early adopt this guidance during the quarter ended January 26, 2018. Adoption of this guidance had a material impact on retained earnings and other comprehensive income (see the Consolidated Statements of Shareholders’ Equity contained in this Report). In December 2019, the FASB issued ASU 2019-12, “Income Taxes – Simplifying the Accounting for Income Taxes”. The guidance removes exceptions to the general principles in Topic 740 for allocating tax expense between financial statement components, accounting basis differences stemming from an ownership change in foreign investments and interim period income tax accounting for year-to-date losses that exceed projected losses. The guidance becomes effective for annual reporting periods beginning after December 15, 2020 and interim periods within those fiscal years with early adoption permitted. We do not expect the adoption of this guidance to have a material impact on our consolidated financial statements. |
Composition of Certain Financia
Composition of Certain Financial Statement Captions | 12 Months Ended |
Nov. 01, 2019 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Composition of Certain Financial Statement Captions | NOTE 2 - Composition of Certain Financial Statement Captions: 2019 2018 Inventories, net: Meat, ingredients and supplies $ 5,283 $ 6,455 Work in process 1,562 1,415 Finished goods 19,522 15,543 $ 26,367 $ 23,413 Property, plant and equipment, net: Land $ 3,908 $ 3,908 Buildings and improvements 21,044 21,665 Machinery and equipment 60,617 57,593 Capital leased trucks 473 404 Transportation equipment 8,391 6,981 Construction in process 13,928 8,424 108,361 98,975 Accumulated depreciation and amortization (54,015 ) (66,337 ) $ 54,346 $ 32,638 Other non-current assets: Cash surrender value benefits $ 12,289 $ 11,624 Other 6 6 $ 12,295 $ 11,630 Accrued payroll, advertising and other expenses: Payroll, vacation, payroll taxes and employee benefits $ 4,063 $ 3,326 Accrued advertising and broker commissions 648 489 Property taxes 520 517 Other 249 245 $ 5,480 $ 4,577 Current portion of non-current liabilities (Notes 3 and 6): Defined benefit retirement plan $ - $ 1,150 Executive retirement plans 10 10 Incentive compensation 4,264 4,796 Capital lease obligation 95 - Customer deposits 10 10 Postretirement healthcare benefits 55 14 $ 4,434 $ 5,980 Non-current liabilities (Note 3): Defined benefit retirement plan $ 14,130 $ 6,903 Executive retirement plans 6,418 5,553 Incentive compensation 3,655 4,487 Capital lease obligation 360 - Postretirement healthcare benefits 665 504 $ 25,228 $ 17,447 |
Retirement and Other Benefit Pl
Retirement and Other Benefit Plans | 12 Months Ended |
Nov. 01, 2019 | |
Retirement Benefits [Abstract] | |
Retirement and Other Benefit Plans | NOTE 3 - Retirement and Other Benefit Plans: Noncontributory-Trusteed Defined Benefit Retirement Plans for Sales, Administrative, Supervisory and Certain Other Employees We have noncontributory-trusteed defined benefit retirement plans for sales, administrative, supervisory and certain other employees. In the third quarter of fiscal year 2006, we froze future benefit accruals under these plans for employees classified within the administrative, sales or supervisory job classifications or within any non-bargaining class. The benefits under these plans are primarily based on years of service and compensation levels. The funding policy of the plans requires contributions which are at least equal to the minimum required contributions needed to avoid a funding deficiency. The measurement date for the plans is our fiscal year end. Net pension cost consisted of the following: November 1, 2019 November 2, 2018 (52 Weeks) (52 Weeks) Service cost $ 103 $ 126 Interest cost 2,396 2,248 Expected return on plan assets (3,414 ) (3,408 ) Amortization of unrecognized loss 1,236 1,575 Net pension cost $ 321 $ 541 Net pension costs and benefit obligations are determined using assumptions as of the beginning of each fiscal year. Weighted average assumptions for each fiscal year are as follows: 2019 2018 Discount rate 3.00 % 4.30 % Rate of increase in salary levels N/A N/A Expected return on plan assets 7.00 % 7.00 % The benefit obligation, plan assets, and funded status of these plans as of the fiscal years ended are as follows: November 1, 2019 November 2, 2018 (52 Weeks) (52 Weeks) Change in plan assets: Fair value of plan assets - beginning of year $ 49,434 $ 48,208 Employer contributions 875 3,150 Actual return on plan assets 5,402 (242 ) Benefits paid (1,819 ) (1,682 ) Fair value of plan assets - end of year $ 53,892 $ 49,434 Change in benefit obligations: Benefit obligations - beginning of year $ 57,487 $ 62,480 Service cost 103 126 Interest cost 2,396 2,248 Actuarial gain (loss) 9,856 (5,686 ) Benefits paid (1,820 ) (1,681 ) Benefit obligations - end of year 68,022 57,487 Funded status of the plans (14,130 ) (8,053 ) Unrecognized prior service costs - - Unrecognized net actuarial loss 23,453 16,821 Net amount recognized $ 9,323 $ 8,768 We perform an internal rate of return analysis when making the discount rate selection. The discount rates were based on FTSE Pension Liability Index (formerly Citibank) as of October 31, 2019 and September 30, 2018, respectively. Plan assets are primarily invested in marketable equity securities, corporate and government debt securities and are administered by an investment management company. The plans’ long-term return on assets is based on the weighted-average of the plans’ investment allocation as of the measurement date and the published historical returns for those types of asset categories, taking into consideration inflation rate forecasts. Our expected employer contribution to the plans in fiscal year 2020 is zero. For fiscal year 2019, our actuary updated mortality tables from the mortality projection scale using MP-2017 Scaling to MP-2018 Scaling. The expected rate of return on plan assets remained the same at 7.00% effective for fiscal years 2019 and 2018, respectively. The actual and target allocation for plan assets are as follows: Asset Class 2019 Target Asset Allocation 2018 Target Asset Allocation Large Cap Equities 21.8 % 22.0 % 21.4 % 22.0 % Mid Cap Equities 0.0 % 0.0 % 0.0 % 0.0 % Small Cap Equities 13.8 % 12.0 % 13.0 % 12.0 % International (equities only) 25.2 % 26.0 % 24.7 % 26.0 % Fixed Income 37.6 % 39.0 % 39.0 % 39.0 % Other (Government/Corporate, Bonds) 0.0 % 0.0 % 0.0 % 0.0 % Cash 1.6 % 1.0 % 1.9 % 1.0 % Total 100.0 % 100.0 % 100.0 % 100.0 % The fair value of our pension plan assets as of November 1, 2019 and the level under which fair values were determined, using the hierarchy described in Note 1, is as follows: 2019 Level 1 Level 2 Level 3 Total Total plan assets $ 53,892 - - $ 53,892 Expected payments for the pension benefits are as follows: Fiscal Years Pension Benefits 2020 $ 2,376 2021 $ 2,545 2022 $ 2,694 2023 $ 2,873 2024 $ 3,034 2025-2029 $ 17,053 Executive Retirement Plans Non-Qualified Deferred Compensation Effective January 1, 1991, we adopted a deferred compensation savings plan for certain key employees. Under this arrangement, selected employees contribute a portion of their annual compensation to the plan. We contribute an amount to each participant’s account by computing an investment return equal to Moody’s Average Seasoned Bond Rate plus 2%. Employees receive vested amounts upon death, termination or attainment of retirement age. No benefit expense was recorded under this plan for fiscal years 2019 and 2018. Supplemental Executive Retirement Plan In fiscal year 1991, we adopted a non-qualified supplemental retirement plan for certain key employees. Benefits provided under the plan are equal to 60% of the employee’s final average earnings, less amounts provided by our defined benefit pension plan and amounts available through Social Security. Benefits payable related to these plans and included in the accompanying consolidated financial statements were $6,428 and $5,553 as of November 1, 2019 and November 2, 2018, respectively. In connection with these arrangements we are the beneficiary of life insurance policies on the lives of certain key employees and retirees. The aggregate cash surrender value of these policies, included in non-current assets, was $12,289 and $11,624 as of November 1, 2019 and November 2, 2018, respectively. Expected payments for executive postretirement benefits are as follows: Fiscal Years Executive Postretirement Benefits 2020 $ 524 2021 $ 524 2022 $ 524 2023 $ 524 2024 $ 524 2025-2029 $ 2,619 Incentive Compensation Plan for Certain Key Executives We provide an incentive compensation plan for certain key executives, which is based upon our pretax income. The payment of these amounts is generally deferred over three or five-year periods. The total amount payable related to this arrangement was $7,919 and $9,283 as of November 1, 2019 and November 2, 2018, respectively. Future payments are approximately $4,264, $2,283, $1,221, $101 and $50 for fiscal years 2020 through 2024, respectively. Postretirement Healthcare Benefits for Selected Executive Employees We provide postretirement health care benefits for selected executive employees. Net periodic postretirement healthcare (benefit) cost is determined using assumptions as of the beginning of each fiscal year, except for the total actual benefit payments and the discount rate used to develop the net periodic postretirement benefit expense, which is determined at the end of the fiscal year. Net periodic postretirement healthcare (benefit) consisted of the following: November 1. 2019 November 2. 2018 (52 Weeks) (52 Weeks) Service cost $ 9 $ 13 Interest cost 22 18 Amortization of prior service cost (44 ) (132 ) Amortization of actuarial gain (7 ) (41 ) Net periodic postretirement healthcare (benefit) $ (20 ) $ (142 ) Weighted average assumptions for the fiscal years ended November 1, 2019 and November 2, 2018 are as follows: 2019 2018 Discount rate 2.92 % 4.30 % Medical trend rate next year 7.50 % 8.00 % Ultimate trend rate 5.00 % 5.00 % Year ultimate trend rate is achieved 2025 2024 The table below shows the estimated effect of a 1% increase in healthcare cost trend rate on the following: 2019 2018 Interest cost plus service cost $ 3 $ 4 Accumulated postretirement healthcare obligation $ 64 $ 54 The table below shows the estimated effect of a 1% decrease in healthcare cost trend rate on the following: 2019 2018 Interest cost plus service cost $ (3 ) $ (3 ) Accumulated postretirement healthcare obligation $ (53 ) $ (45 ) The healthcare obligation and funded status of this plan as of the fiscal years ended are as follows: 2019 2018 Change in accumulated postretirement healthcare obligation: Healthcare obligation - beginning of year $ 517 $ 528 Service cost 9 13 Interest cost 22 18 Actuarial gain 44 (40 ) Benefits paid (6 ) (2 ) Healthcare obligation – end of year $ 586 $ 517 Funded status of the plans 586 517 Unrecognized prior service costs - (44 ) Unrecognized net actuarial gain (58 ) (109 ) Unrecognized amounts recorded in other comprehensive income 58 153 Postretirement healthcare liability $ 586 $ 517 Expected payments for the postretirement benefits are as follows: Fiscal Years Postretirement Healthcare Benefits 2020 $ 65 2021 $ 44 2022 $ 20 2023-2027 $ 103 401(K) Plan for Sales, Administrative, Supervisory and Certain Other Employees During the fiscal year ended November 3, 2006, we implemented a qualified 401(K) retirement plan (the “401K Plan”) for our sales, administrative, supervisory and certain other employees. During fiscal years 2019 and 2018, we made total employer contributions to the 401K Plan in the amounts of $722 and $660, respectively. |
Income Taxes
Income Taxes | 12 Months Ended |
Nov. 01, 2019 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | NOTE 4 - Income Taxes: The provision for income taxes includes the following: November 1, 2019 November 2, 2018 (52 Weeks) (52 Weeks) Current: Federal $ (177 ) $ 979 State 342 377 165 1,356 Deferred: Federal 1,667 4,715 State 221 225 1,888 4,940 $ 2,053 $ 6,296 The total tax provision differs from the expected amount computed by applying the statutory federal income tax rate to income before income taxes as follows: November 1, 2019 November 2, 2018 (52 Weeks) (52 Weeks) Provision for federal income taxes at the applicable statutory rate $ 1,790 $ 2,956 Increase in provision resulting from state income taxes, net of federal income tax benefit 445 463 Change in federal rate – Tax Act - 3,059 Non-taxable life insurance gain (140 ) (99 ) Domestic Production Activities Deduction - (106 ) Other, net (42 ) 23 $ 2,053 $ 6,296 Deferred income taxes result from differences in the bases of assets and liabilities for tax and accounting purposes. 2019 2018 Receivables allowance $ 8 $ 9 Returns allowance 160 112 Inventory packaging reserve 90 35 Inventory overhead capitalization 394 305 Employee benefits 467 385 Other 25 - State taxes (281 ) (230 ) Incentive compensation 1,794 2,174 Pension and health care benefits 5,604 3,494 Depreciation (6,310 ) (2,274 ) Net operating loss carry-forward and credits 2,173 77 Valuation allowance established against state NOL (77 ) (77 ) Deferred income tax assets, net $ 4,047 $ 4,010 Management is required to evaluate whether a valuation allowance should be established against its deferred tax assets based on the consideration of all available evidence using a "more likely than not" standard. Realization of deferred tax assets is dependent upon taxable income in prior carryback years, estimates of future taxable income, tax planning strategies, and reversals of existing taxable temporary differences. As of November 1, 2019, the Company did not have any valuation allowance against its federal net deferred tax assets. Management reevaluated the need for a valuation allowance at the end of 2019 and determined that some of its California NOL may not be utilized. Therefore, a valuation allowance of $77 has been retained for such portion of California NOL. As of November 1, 2019, the Company had net operating loss carryforwards of approximately $9,979 for federal and $874 for state purposes. The federal loss will be carried forward indefinitely until it can be utilized against future taxable income. The state loss carryforwards will expire at various dates from 2023 through 2034. As of November 1, 2019, we have provided a liability of $90 for unrecognized tax benefits related to various federal and state income tax matters. None of this liability will reduce our effective income tax rate if the asset is recognized in future reporting periods. We have not identified any new unrecognized tax benefits. As of November 2, 2018, we have provided a liability of $155 for unrecognized tax benefits related to various federal and state income tax matters. None of this liability will reduce our effective income tax rate if the asset is recognized in future reporting periods. We have not identified any new unrecognized tax benefits. A reconciliation of the beginning and ending amounts of unrecognized tax benefits is as follows: November 1, 2019 November 2, 2018 (52 Weeks) (52 Weeks) Balance at beginning of year $ 155 $ 135 Additions based on tax positions related to the current year - 10 Additions for tax positions of prior years - 10 Reductions for tax positions of prior years (65 ) - Settlements - - Balance at end of year $ 90 $ 155 We recognize any future accrued interest and penalties related to unrecognized tax benefits in income tax expense. As of November 1, 2019, we had approximately $18 in accrued interest and penalties which is included as a component of the $90 unrecognized tax benefit noted above. Our federal income tax returns are open to audit under the statute of limitations for the fiscal years 2016 through 2018. We are subject to income tax in California and various other state taxing jurisdictions. Our state income tax returns are open to audit under the statute of limitations for the fiscal years ended 2015 through 2018. We do not anticipate a significant change to the total amount of unrecognized tax benefits within the next 12 months. On December 22, 2017, President Trump signed into law the Tax Cuts and Jobs Act (the “Tax Act”). The Tax Act includes significant changes to the U.S. tax code that affected our fiscal year ended November 2, 2018, and future periods, including, but not limited to, (1) reduced the corporate federal income tax rate from 35% to 21%, (2) bonus depreciation that allowed for full expensing of qualified property in the year placed in service, and (3) the repeal of the domestic production activity deduction beginning with our fiscal year 2019. Section 15 of the Internal Revenue Code (the “Code”) stipulates that our fiscal year ended November 2, 2018 had a blended corporate tax rate of 23.07%, which is based on the applicable tax rates before and after the Tax Act and the number of days in the year. Under U.S. GAAP, specifically ASC Topic 740, Income Taxes, The Company adopted ASU 2018-02, “Income Statement-Reporting Other Comprehensive Income (OCI) (Topic 220)” in year ended November 2, 2018. As a result of the remeasurement of deferred tax assets related to the Tax Act, we reclassified $2,529 from Other Comprehensive Income to Retained Earnings. |
Line of Credit and Borrowing Ag
Line of Credit and Borrowing Agreement | 12 Months Ended |
Nov. 01, 2019 | |
Line Of Credit And Borrowing Agreement | |
Line of Credit and Borrowing Agreement | NOTE 5 - Line of Credit and Borrowing Agreement: We maintain a line of credit with Wells Fargo Bank, N.A. that expires on March 1, 2020. Under the terms of this line of credit, we may borrow up to $7,500 at an interest rate equal to the bank’s prime rate or LIBOR plus 1.5%. The borrowing agreement contains various covenants, the more significant of which require us to maintain a minimum tangible net worth, a minimum quick ratio, a minimum net income after tax and total capital expenditures less than $7,500. The Company was in violation of the capital expenditure covenant at November 1, 2019 which was subsequently waived (per letter dated December 16, 2019). The Company borrowed $2,000 under this line of credit on April 15, 2019, which was repaid on April 25, 2019. On December 26, 2018, we entered into a master collateral loan and security agreement with Wells Fargo Bank, N.A for up to $15,000 in equipment financing. Pursuant to the loan agreement, we made two borrowings of $7,500 each, to purchase specific equipment for our new Chicago processing facility at a fixed rate of 4.13% and 3.98%, respectively, per annum. The loan terms are seven years and are secured by the purchased equipment. The first funding of $7,500 was received on December 28, 2018. The second funding was received on April 23, 2019. The master collateral loan and security agreement with Wells Fargo Bank, N.A. contains various affirmative and negative covenants that limit the use of funds and define other provisions of the loan. The main financial covenants are listed below: ● Total Liabilities divided by Tangible Net Worth (as defined) not greater than 2.5 to 1.0 at each fiscal quarter, ● Quick Ratio (as defined) not less than 1.0 to 1.0 at each fiscal quarter end, and ● Net income after taxes not less than one dollar on a quarterly basis, determined as of each fiscal quarter end. The first secured equipment note payable is due with monthly principal and interest payments of $103 commencing on January 31, 2019 for 84 monthly installments including interest of 4.13% per annum. The second secured equipment note payable is due with monthly principal and interest payments of $102 commencing on May 31, 2019 for 84 monthly installments including interest of 3.98% per annum. November 1, 2019 November 2, 2018 Secured equipment notes payable to Wells Fargo Bank, N.A. collateralized by equipment for the new Chicago processing facility. $ 13,747 $ - Less current portion of notes payable (1,943 ) - Total long-term notes payable $ 11,804 $ - The Company was in compliance with all covenants under the master collateral loan and security agreement as of November 1, 2019. |
Contingencies and Commitments
Contingencies and Commitments | 12 Months Ended |
Nov. 01, 2019 | |
Commitments and Contingencies Disclosure [Abstract] | |
Contingencies and Commitments | NOTE 6- Contingencies and Commitments: The Company leases warehouse and/or office facilities throughout the United States and Canada through month-to-month rental agreements. In the case of month-to-month lease or rental agreements with terms of 12 months or less, the Company made an accounting policy election to not recognize lease assets and liabilities due to their underlying nature. The Company leases three long-haul trucks received during fiscal 2019. Six-year leases for semi-trucks expire in 2025. Amortization of equipment under capital lease was $34 in 2019. The following is a schedule by years of future minimum lease payments for transportation leases: Fiscal Year Financing 2021 $ 102 2022 102 2023 102 2024 102 2025 102 Later Years 75 Total Minimum Lease Payments(a) $ 585 Less: Amount representing executory costs (76 ) Less: Amount representing interest(b) (54 ) Present value of future minimum lease payments(c) $ 455 (a) Minimum payments exclude contingent rentals based on actual mileage and adjustments of rental payments based on the Consumer Price Index. (b) Amount necessary to reduce net minimum lease payments to present value calculated at the Entity’s incremental borrowing rate at the inception of the leases. (c) Reflected in the Note 2, as current and noncurrent obligations under capital leases of $95 and $360, respectively. |
Segment Information
Segment Information | 12 Months Ended |
Nov. 01, 2019 | |
Segment Reporting [Abstract] | |
Segment Information | NOTE 7 - Segment Information: We have two reportable operating segments, Frozen Food Products (the processing and distribution of frozen products) and Snack Food Products (the processing and distribution of meat and other convenience foods). We evaluate each segment’s performance based on revenues and operating income. Selling, general and administrative expenses include corporate accounting, information systems, human resource and marketing management at the corporate level. These activities are allocated to each operating segment based on revenues and/or actual usage. The following segment information is for the fiscal years ended November 1, 2019 (52 weeks) and November 2, 2018 (52 weeks): Segment Information 2019 Frozen Food Products Snack Food Products Other Totals Net Sales $ 51,234 $ 137,551 $ - $ 188,785 Cost of products sold 33,444 93,677 - 127,121 Gross margin 17,790 43,874 - 61,664 SG&A 14,867 37,970 - 52,837 (Gain) loss on sale of property, plant and equipment (4 ) 294 - 290 Income before taxes $ 2,927 $ 5,610 $ - $ 8,537 Total assets $ 12,198 $ 90,221 $ 21,037 $ 123,456 Additions to PP&E $ 654 $ 25,085 $ - $ 25,739 Segment Information 2018 Frozen Food Products Snack Food Products Other Totals Net Sales $ 47,266 $ 126,991 $ - $ 174,257 Cost of products sold 30,992 86,759 - 117,751 Gross margin 16,274 40,232 - 56,506 SG&A 14,226 35,703 - 49,929 Gain on sale of property, plant and equipment (242 ) (17 ) (5,977 ) (6,236 ) Income before taxes $ 2,290 $ 4,546 $ 5,977 $ 12,813 Total assets $ 11,902 $ 64,429 $ 25,163 $ 101,494 Additions to PP&E $ 981 $ 17,166 $ - $ 18,147 The following information further disaggregates our sales to customers by major distribution channel and customer type for the fiscal year ended November 1, 2019. 2019 Distribution Channel Retail (a) Foodservice (b) Totals Direct store delivery $ 100,936 $ - $ 100,936 Direct customer warehouse 36,615 - 36,615 Total Snack Food Products 137,551 - 137,551 Distributors 6,915 44,319 51,234 Total Frozen Food Products 6,915 44,319 51,234 Total Net Sales $ 144,466 $ 44,319 $ 188,785 (a) Includes sales to food retailers, such as grocery retailers, warehouse club stores, and internet-based retailers. (b) Includes sales to foodservice distributors, restaurant operators, hotel chains and noncommercial foodservice establishments such as schools, convenience stores, healthcare facilities and the military. |
Unaudited Interim Financial Inf
Unaudited Interim Financial Information | 12 Months Ended |
Nov. 01, 2019 | |
Quarterly Financial Information Disclosure [Abstract] | |
Unaudited Interim Financial Information | NOTE 8 - Unaudited Interim Financial Information: Not applicable for a smaller reporting company. |
The Company and Summary of Si_2
The Company and Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Nov. 01, 2019 | |
Accounting Policies [Abstract] | |
Use of Estimates and Assumptions | Use of estimates and assumptions The preparation of financial statements in conformity with generally accepted accounting principles requires management to make certain estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements, as well as the reported revenues and expenses during the respective reporting periods. Actual results could differ from those estimates. Amounts estimated related to liabilities for pension benefits, self-insured workers’ compensation and employee healthcare benefits are subject to inherent uncertainties and these estimated liabilities may ultimately settle at amounts which may vary from current estimates. Other areas with underlying estimates include realization of deferred tax assets, cash surrender or contract value of life insurance policies, promotional allowances and the allowance for doubtful accounts and inventory reserves. Management believes its current estimates are reasonable and based on the best information available at the time. We test long-lived assets for recoverability whenever events or changes in circumstances indicate that the carrying amount may not be recoverable. If an impairment is indicated, we measure the fair value of assets to determine if and when adjustments are recorded. |
Subsequent Events | Subsequent events Management has evaluated events subsequent to November 1, 2019 through the date the accompanying consolidated financial statements were filed with the Securities and Exchange Commission for transactions and other events that may require adjustment of and/or disclosure in such financial statements. On December 19, 2019, we entered into a third master collateral loan and security agreement with Wells Fargo Bank, N.A for $3,750 in equipment financing. Pursuant to the loan agreement, we borrowed $3,750 to purchase specific equipment for our new Chicago processing facility at a fixed rate of 3.70% per annum. The loan term is seven years and is secured by the purchased equipment. The funds were received on December 23, 2019. The master collateral loan and security agreement with Wells Fargo Bank, N.A. contains various affirmative and negative covenants that limit the use of funds and define other provisions of the loan. The main financial covenants are listed below: ● Total Liabilities divided by Tangible Net Worth not greater than 2.5 to 1.0 at each fiscal quarter, ● Quick Ratio not less than 1.0 to 1.0 at each fiscal quarter end, ● Net income after taxes not less than one dollar on a quarterly basis, determined as of each fiscal quarter end. The Company maintains a line of credit with Wells Fargo Bank, N.A. that expires on March 1, 2020. Under the terms of this line of credit, we may borrow up to $7,500 at an interest rate equal to the bank’s prime rate or LIBOR plus 1.5%. The Company borrowed $2,000 under this line of credit on November 24, 2019. The Company borrowed an additional 2.500,000 under the line of credit on January 23, 2020. Based on management’s review, no other material events were identified that require adjustment to the financial statements or additional disclosure. |
Accounts Receivable | Accounts Receivable Accounts receivable are recorded at net realizable value. The value is presented net of allowance for doubtful accounts and promotional incentives. Our accounts receivable consists mainly of trade receivables from customer sales. We evaluate the collectability of our accounts receivable based on a several factors. The provision for doubtful accounts receivable is based on historical trends and current collectability risk. Our provision for doubtful accounts was $31 and $33 as of November 1, 2019 and November 2, 2018, respectively. |
Concentrations of Credit Risk | Concentrations of credit risk Our credit risk is diversified across a broad range of customers and geographic regions. Losses due to credit risk have recently been immaterial. The carrying amount of cash equivalents, accounts and other receivables, accounts payable and accrued liabilities approximate fair market value due to the short maturity of these instruments. We maintain cash balances at financial institutions, which may at times exceed the amounts insured by the Federal Deposit Insurance Corporation. Management does not believe there is significant credit risk associated with these financial institutions. Sales to Wal-Mart® comprised 35.7% of revenues in fiscal year 2019 and 31.9% of total accounts receivable was due from Wal-Mart® as of November 1, 2019. Sales to Wal-Mart® comprised 36.4% of revenues in fiscal year 2018 and 31.3% of total accounts receivable was due from Wal-Mart® as of November 2, 2018. Sales to Dollar General® comprised 11.1% of revenues in fiscal year 2019 and 21.7% of total accounts receivable was due from Dollar General® as of November 1, 2019. Sales to Dollar General® comprised 9.6% of revenues in fiscal year 2018 and 23.5% of total accounts receivable was due from Dollar General® as of November 2, 2018. |
Business Segments | Business segments Our company and subsidiaries operate in two business segments - the processing and distribution of frozen foods products, and the processing and distribution of snack food products. See Note 7 for further information. |
Fiscal Year | Fiscal year We maintain our accounting records on a 52-53-week fiscal basis ending on the Friday closest to October 31. As part of the regular accounting cycle, fiscal years 2019 and 2018 included 52 weeks. |
Revenues | Revenues The Company recognizes revenue for the sale of the product at the point in time when our performance obligation has been satisfied and control of the product has transferred to our customer, which generally occurs upon shipment, pickup or delivery to a customer based on terms of the sale. Contracts with customers are typically short-term in nature with completion of a single performance obligation. Product is sold to foodservice, retail, institutional and other distribution channels. Products are delivered to customers primarily through our own long-haul fleet, common carrier or through a Company owned direct store delivery system. These delivery costs, $5,012 and $3,883 for fiscal years 2019 and 2018, respectively, are included in selling, general and administrative expenses in the accompanying consolidated financial statements. Shipping and handling that occurs after the customer has obtained control of the product is recorded as a fulfillment cost rather than an additional assured service. Costs paid to third party brokers to obtain contracts are recognized as part of selling expenses. Other sundry items in context of the contract are also recognized as selling expense. Any taxes collected on behalf of the government are excluded from net revenue. We record revenue at transaction price which is measured as the amount of consideration we anticipate to receive in exchange for providing product to our customers. Revenue is recognized as the net amount estimated to be received after deducting estimated or known amounts including variable consideration for discounts, trade allowances, consumer incentives, coupons, volume-based incentives, cooperative advertising, product returns and other such programs. Promotional allowances, including customer incentive and trade promotion activities, are recorded as a reduction to sales based on amounts estimated being due to customers, based primarily on historical utilization and redemption rates. Estimates are reviewed regularly until incentives or product returns are realized and the result of any such adjustments are known. Promotional allowances deducted from sales for fiscal years 2019 and 2018 were $11,105 and $8,840, respectively. |
Advertising Expenses | Advertising expenses Advertising and other promotional expenses are recorded as selling, general and administrative expenses. Advertising expenses for fiscal years 2019 and 2018 were $2,574 and $2,713, respectively. |
Cash and Cash Equivalents | Cash and cash equivalents We consider all investments with original maturities of three months or less to be cash equivalents. Cash equivalents include money market funds and treasury bills. Cash equivalents totaled $3,478 as of November 1, 2019 and $8,179 as of November 2, 2018. All material cash and cash equivalents as of November 1, 2019 were held at Wells Fargo Bank N.A. |
Fair Value Measurements | Fair value measurements We classify levels of inputs to measure the fair value of financial assets as follows: â—Ź Level 1 inputs: Level 1 inputs are quoted market prices in active markets for identical assets or liabilities that are accessible at the measurement date. â—Ź Level 2 inputs: Level 2 inputs are from other than quoted market prices included in Level 1 that are observable for the asset or liability, either directly or indirectly. â—Ź Level 3 inputs: Level 3 inputs are unobservable and should be used to measure fair value to the extent that observable inputs are not available. The hierarchy noted above requires us to minimize the use of unobservable inputs and to use observable market data, if available, when determining fair value. The Company does not have any assets or liabilities measured at fair value on a recurring or non-recurring basis for the fiscal years ended November 1, 2019 and November 2, 2018. |
Inventories | Inventories Inventories are valued at the lower of cost (which approximates actual cost on a first-in, first-out basis) or net realizable value. Inventories include the cost of raw materials, labor and manufacturing overhead. We regularly review inventory quantities on hand and write down any excess or obsolete inventories to net realizable value. An inventory reserve is created when potentially slow-moving or obsolete inventories are identified in order to reflect the appropriate inventory value. Changes in economic conditions, production requirements, and lower than expected customer demand could result in additional obsolete or slow-moving inventory that cannot be sold or must be sold at reduced prices and could result in additional reserve provisions. |
Property, Plant and Equipment | Property, plant and equipment Property, plant and equipment are carried at cost less accumulated depreciation. Major renewals and improvements are charged to the asset accounts while the cost of maintenance and repairs is charged to expense as incurred. When assets are sold or otherwise disposed of, the cost and accumulated depreciation are removed from the respective accounts and the resulting gain or loss is credited or charged to income. Depreciation is computed on a straight-line basis over 10 to 20 years for buildings and improvements, 5 to 10 years for machinery and equipment, and 3 to 5 years for transportation equipment. We are building a processing plant from the ground up and as such have attributed long useful lives accordingly to these types of assets employed at the new facility in Chicago. |
Leases | Leases Leased property and equipment that meet lease criteria are capitalized at the lower of the present value of the minimum payments required under the lease or the fair value of the asset at inception of the lease and are included within property, plant and equipment on the consolidated balance sheet. If any, obligations under capital leases are accounted for as current and noncurrent liabilities on the consolidated balance sheet. Amortization is calculated on a straight-line method based upon the shorter of the estimated useful life of the asset or the lease term. |
Life Insurance Policies | Life insurance policies We record the cash surrender value or contract value for life insurance policies as an adjustment of premiums paid in determining the expense or income to be recognized under the contract for the period. The cash surrender value is included in other non-current assets in the accompanying consolidated balance sheets. |
Income Taxes | Income taxes Deferred taxes are provided for items whose financial and tax bases differ. A valuation allowance is provided against deferred tax assets when it is expected that it is more likely than not that the related asset will not be fully realized. The determination as to whether or not a deferred tax asset can be fully realized is subject to a significant degree of judgment, based at least partially upon a projection of future taxable income, which takes into consideration past and future trends in profitability, customer demand, supply costs, and multiple other factors, which are inherently difficult to predict. We provide tax accruals for federal, state and local exposures relating to audit results, tax planning initiatives and compliance responsibilities. The development of these accruals requires judgments about tax issues, potential outcomes and timing. (See Note 4 to the Consolidated Financial Statements). Although the outcome of these tax audits is uncertain, in management’s opinion adequate provisions for income taxes have been made for potential liabilities emanating from these reviews. If actual outcomes differ materially from these estimates, they could have a material impact on our results of operations. |
Stock-based Compensation | Stock-based compensation We measure and recognize compensation expense for all share-based payments to employees, including grants of employee stock options, in the financial statements based on the fair value at the date of the grant. We have not issued, awarded, granted or entered into any stock-based payment agreements since April 29, 1999, and no such expense was recognized in fiscal years 2019 and 2018. |
Comprehensive Income or Loss | Comprehensive income or loss Comprehensive income or loss consists of net income and additional minimum pension liability adjustments. |
Recently Issued Accounting Pronouncements and Regulations | Recently issued accounting pronouncements and regulations In May 2014, the Financial Accounting Standards Board (the “FASB”) issued ASU 2014-09 “Revenue from Contracts with Customers” to supersede previous revenue recognition guidance under current U.S. GAAP. The guidance presents a single five-step model for comprehensive revenue recognition that requires an entity to recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. Two options are available for implementation of the standard which are either the retrospective approach or cumulative effect adjustment approach. The guidance become effective for annual reporting periods that begin after December 15, 2017, including interim periods within that reporting period, with early adoption permitted. The Company adopted the modified retrospective transition method beginning with the first quarter of fiscal 2019. The adoption did not have a material impact on our consolidated financial statements. For further information please refer to Part I, Item 1, Notes to Consolidated Financial Statements under Revenues. Disaggregated revenue is disclosed in Part I, Item 1, Notes to Consolidated Financial Statements, Note 7: Segment Information. In January 2016, the FASB issued ASU 2016-01, “Recognition and Measurement of Financial Assets and Financial Liabilities” that requires most equity investments to be measured at fair value and subsequent changes in fair value to be recognized in net income. The guidance covers presentation and disclosure requirements of financial liabilities and the classification and measurement of financial instruments. The guidance is effective for annual reporting periods and interim periods within those annual reporting periods beginning after December 15, 2017. We adopted this guidance in the first quarter of fiscal 2019. The adoption did not have a material impact on our consolidated financial statements. In February 2016, the FASB issued ASU 2016-02, “Leases”, which requires a lessee to recognize assets and liabilities with lease terms of more than 12 months. Both capital and operating leases are to be recognized on the balance sheet. The guidance is effective for annual reporting periods beginning after December 15, 2018 and interim periods within fiscal years beginning after December 15, 2019 which is our first quarter of fiscal 2020. We have analyzed all lease transactions during fiscal year 2019. The Company elected not to reassess expired contracts or adjust comparative periods. The Company determined that no change to current accounting treatment is warranted due to the underlying nature of our leases. In the case of month-to-month lease or rental agreements with terms of 12 months or less, the Company made an accounting policy election to not recognize lease assets and liabilities. The Company performed a detailed analysis and determined that there were no indicators of longer-term leases at this time. The application of this pronouncement will result in additional disclosures detailing our lease arrangements. The Company continues to evaluate this statement and its impact on its results of operations or financial position but do not expect a material impact on our consolidated financial statements. In October 2016, the FASB issued ASU 2016-16, “Income Taxes – Classification of Certain Cash Receipts and Cash Payments”. The guidance involves eight specific cash flow issues and aims to unify accounting for these transactions. The guidance becomes effective for annual reporting periods beginning after December 15, 2017 with early adoption permitted. The Company adopted this guidance during the first quarter of fiscal 2019 and it did not have a material impact on our consolidated financial statements. In March 2017, the FASB issued ASU 2017-07, “Compensation – Retirement Benefits”. The guidance separates service cost from other pension cost components changing the presentation of net periodic benefit cost related to company sponsored defined benefit or other postretirement benefits. The guidance becomes effective for annual and interim reporting periods beginning after December 15, 2017 with early adoption permitted. Additional disclosure reconciling net periodic benefit cost is detailed in Item I, Notes to the Consolidated Financial Statements under Note 3, Retirement and Other Benefit Plans. The Company adopted this guidance during the first quarter of fiscal 2019 and it did not have a material impact on our consolidated financial statements. In February 2018, the FASB issued ASU 2018-02, “Income Statement-Reporting Comprehensive Income (Topic 220): Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income”. The guidance allows reclassification from accumulated other comprehensive income to retained earnings for stranded tax effects resulting from the application of the U.S. Tax Cuts and Jobs Act. The guidance is effective for annual and interim reporting periods beginning after December 15, 2018 with early adoption permitted. The Company elected to early adopt this guidance during the quarter ended January 26, 2018. Adoption of this guidance had a material impact on retained earnings and other comprehensive income (see the Consolidated Statements of Shareholders’ Equity contained in this Report). In December 2019, the FASB issued ASU 2019-12, “Income Taxes – Simplifying the Accounting for Income Taxes”. The guidance removes exceptions to the general principles in Topic 740 for allocating tax expense between financial statement components, accounting basis differences stemming from an ownership change in foreign investments and interim period income tax accounting for year-to-date losses that exceed projected losses. The guidance becomes effective for annual reporting periods beginning after December 15, 2020 and interim periods within those fiscal years with early adoption permitted. We do not expect the adoption of this guidance to have a material impact on our consolidated financial statements. |
Composition of Certain Financ_2
Composition of Certain Financial Statement Captions (Tables) | 12 Months Ended |
Nov. 01, 2019 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Schedule of Composition of Certain Financial Statement | 2019 2018 Inventories, net: Meat, ingredients and supplies $ 5,283 $ 6,455 Work in process 1,562 1,415 Finished goods 19,522 15,543 $ 26,367 $ 23,413 Property, plant and equipment, net: Land $ 3,908 $ 3,908 Buildings and improvements 21,044 21,665 Machinery and equipment 60,617 57,593 Capital leased trucks 473 404 Transportation equipment 8,391 6,981 Construction in process 13,928 8,424 108,361 98,975 Accumulated depreciation and amortization (54,015 ) (66,337 ) $ 54,346 $ 32,638 Other non-current assets: Cash surrender value benefits $ 12,289 $ 11,624 Other 6 6 $ 12,295 $ 11,630 Accrued payroll, advertising and other expenses: Payroll, vacation, payroll taxes and employee benefits $ 4,063 $ 3,326 Accrued advertising and broker commissions 648 489 Property taxes 520 517 Other 249 245 $ 5,480 $ 4,577 Current portion of non-current liabilities (Notes 3 and 6): Defined benefit retirement plan $ - $ 1,150 Executive retirement plans 10 10 Incentive compensation 4,264 4,796 Capital lease obligation 95 - Customer deposits 10 10 Postretirement healthcare benefits 55 14 $ 4,434 $ 5,980 Non-current liabilities (Note 3): Defined benefit retirement plan $ 14,130 $ 6,903 Executive retirement plans 6,418 5,553 Incentive compensation 3,655 4,487 Capital lease obligation 360 - Postretirement healthcare benefits 665 504 $ 25,228 $ 17,447 |
Retirement and Other Benefit _2
Retirement and Other Benefit Plans (Tables) | 12 Months Ended |
Nov. 01, 2019 | |
Schedule of Net Pension Cost | Net pension cost consisted of the following: November 1, 2019 November 2, 2018 (52 Weeks) (52 Weeks) Service cost $ 103 $ 126 Interest cost 2,396 2,248 Expected return on plan assets (3,414 ) (3,408 ) Amortization of unrecognized loss 1,236 1,575 Net pension cost $ 321 $ 541 |
Schedule of Assumptions Used | Weighted average assumptions for each fiscal year are as follows: 2019 2018 Discount rate 3.00 % 4.30 % Rate of increase in salary levels N/A N/A Expected return on plan assets 7.00 % 7.00 % |
Schedule of Changes in Projected Benefit Obligations | The benefit obligation, plan assets, and funded status of these plans as of the fiscal years ended are as follows: November 1, 2019 November 2, 2018 (52 Weeks) (52 Weeks) Change in plan assets: Fair value of plan assets - beginning of year $ 49,434 $ 48,208 Employer contributions 875 3,150 Actual return on plan assets 5,402 (242 ) Benefits paid (1,819 ) (1,682 ) Fair value of plan assets - end of year $ 53,892 $ 49,434 Change in benefit obligations: Benefit obligations - beginning of year $ 57,487 $ 62,480 Service cost 103 126 Interest cost 2,396 2,248 Actuarial gain (loss) 9,856 (5,686 ) Benefits paid (1,820 ) (1,681 ) Benefit obligations - end of year 68,022 57,487 Funded status of the plans (14,130 ) (8,053 ) Unrecognized prior service costs - - Unrecognized net actuarial loss 23,453 16,821 Net amount recognized $ 9,323 $ 8,768 |
Schedule of Allocation of Plan Assets | The actual and target allocation for plan assets are as follows: Asset Class 2019 Target Asset Allocation 2018 Target Asset Allocation Large Cap Equities 21.8 % 22.0 % 21.4 % 22.0 % Mid Cap Equities 0.0 % 0.0 % 0.0 % 0.0 % Small Cap Equities 13.8 % 12.0 % 13.0 % 12.0 % International (equities only) 25.2 % 26.0 % 24.7 % 26.0 % Fixed Income 37.6 % 39.0 % 39.0 % 39.0 % Other (Government/Corporate, Bonds) 0.0 % 0.0 % 0.0 % 0.0 % Cash 1.6 % 1.0 % 1.9 % 1.0 % Total 100.0 % 100.0 % 100.0 % 100.0 % |
Schedule of Fair Value of Pension Plan Assets | The fair value of our pension plan assets as of November 1, 2019 and the level under which fair values were determined, using the hierarchy described in Note 1, is as follows: 2019 Level 1 Level 2 Level 3 Total Total plan assets $ 53,892 - - $ 53,892 |
Schedule of Health Care Cost Trend Rates | Weighted average assumptions for the fiscal years ended November 1, 2019 and November 2, 2018 are as follows: 2019 2018 Discount rate 2.92 % 4.30 % Medical trend rate next year 7.50 % 8.00 % Ultimate trend rate 5.00 % 5.00 % Year ultimate trend rate is achieved 2025 2024 |
Schedule of Net Funded Status | The healthcare obligation and funded status of this plan as of the fiscal years ended are as follows: 2019 2018 Change in accumulated postretirement healthcare obligation: Healthcare obligation - beginning of year $ 517 $ 528 Service cost 9 13 Interest cost 22 18 Actuarial gain 44 (40 ) Benefits paid (6 ) (2 ) Healthcare obligation – end of year $ 586 $ 517 Funded status of the plans 586 517 Unrecognized prior service costs - (44 ) Unrecognized net actuarial gain (58 ) (109 ) Unrecognized amounts recorded in other comprehensive income 58 153 Postretirement healthcare liability $ 586 $ 517 |
Pension Plan [Member] | |
Schedule of Expected Payments for Pension Benefits | Expected payments for the pension benefits are as follows: Fiscal Years Pension Benefits 2020 $ 2,376 2021 $ 2,545 2022 $ 2,694 2023 $ 2,873 2024 $ 3,034 2025-2029 $ 17,053 |
Executive Post-retirement Benefits [Member] | |
Schedule of Expected Payments for Pension Benefits | Expected payments for executive postretirement benefits are as follows: Fiscal Years Executive Postretirement Benefits 2020 $ 524 2021 $ 524 2022 $ 524 2023 $ 524 2024 $ 524 2025-2029 $ 2,619 |
Post-retirement Healthcare Benefits [Member] | |
Schedule of Expected Payments for Pension Benefits | Expected payments for the postretirement benefits are as follows: Fiscal Years Postretirement Healthcare Benefits 2020 $ 65 2021 $ 44 2022 $ 20 2023-2027 $ 103 |
Schedule Net Periodic Post-retirement Healthcare (benefit) Cost | Net periodic postretirement healthcare (benefit) consisted of the following: November 1. 2019 November 2. 2018 (52 Weeks) (52 Weeks) Service cost $ 9 $ 13 Interest cost 22 18 Amortization of prior service cost (44 ) (132 ) Amortization of actuarial gain (7 ) (41 ) Net periodic postretirement healthcare (benefit) $ (20 ) $ (142 ) |
One Percent Increase in Healthcare Cost Trend Rate [Member] | |
Schedule of Effect of One-Percentage-Point Change in Assumed Health Care Cost Trend Rates | The table below shows the estimated effect of a 1% increase in healthcare cost trend rate on the following: 2019 2018 Interest cost plus service cost $ 3 $ 4 Accumulated postretirement healthcare obligation $ 64 $ 54 |
One Percent Decrease In Healthcare Cost Trend Rate [Member] | |
Schedule of Effect of One-Percentage-Point Change in Assumed Health Care Cost Trend Rates | The table below shows the estimated effect of a 1% decrease in healthcare cost trend rate on the following: 2019 2018 Interest cost plus service cost $ (3 ) $ (3 ) Accumulated postretirement healthcare obligation $ (53 ) $ (45 ) |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Nov. 01, 2019 | |
Income Tax Disclosure [Abstract] | |
Schedule of Provision (Benefit) for Taxes on Income | The provision for income taxes includes the following: November 1, 2019 November 2, 2018 (52 Weeks) (52 Weeks) Current: Federal $ (177 ) $ 979 State 342 377 165 1,356 Deferred: Federal 1,667 4,715 State 221 225 1,888 4,940 $ 2,053 $ 6,296 |
Schedule of Tax Provision Differs from Statutory Federal Income Tax Rate | The total tax provision differs from the expected amount computed by applying the statutory federal income tax rate to income before income taxes as follows: November 1, 2019 November 2, 2018 (52 Weeks) (52 Weeks) Provision for federal income taxes at the applicable statutory rate $ 1,790 $ 2,956 Increase in provision resulting from state income taxes, net of federal income tax benefit 445 463 Change in federal rate – Tax Act - 3,059 Non-taxable life insurance gain (140 ) (99 ) Domestic Production Activities Deduction - (106 ) Other, net (42 ) 23 $ 2,053 $ 6,296 |
Schedule of Deferred Income Taxes Results from Differences in Bases of Assets and Liabilities | Deferred income taxes result from differences in the bases of assets and liabilities for tax and accounting purposes. 2019 2018 Receivables allowance $ 8 $ 9 Returns allowance 160 112 Inventory packaging reserve 90 35 Inventory overhead capitalization 394 305 Employee benefits 467 385 Other 25 - State taxes (281 ) (230 ) Incentive compensation 1,794 2,174 Pension and health care benefits 5,604 3,494 Depreciation (6,310 ) (2,274 ) Net operating loss carry-forward and credits 2,173 77 Valuation allowance established against state NOL (77 ) (77 ) Deferred income tax assets, net $ 4,047 $ 4,010 |
Schedule of Reconciliation of Unrecognized Tax Benefits | A reconciliation of the beginning and ending amounts of unrecognized tax benefits is as follows: November 1, 2019 November 2, 2018 (52 Weeks) (52 Weeks) Balance at beginning of year $ 155 $ 135 Additions based on tax positions related to the current year - 10 Additions for tax positions of prior years - 10 Reductions for tax positions of prior years (65 ) - Settlements - - Balance at end of year $ 90 $ 155 |
Line of Credit and Borrowing _2
Line of Credit and Borrowing Agreement (Tables) | 12 Months Ended |
Nov. 01, 2019 | |
Line Of Credit And Borrowing Agreement | |
Schedule of Long Term Notes Payable | November 1, 2019 November 2, 2018 Secured equipment notes payable to Wells Fargo Bank, N.A. collateralized by equipment for the new Chicago processing facility. $ 13,747 $ - Less current portion of notes payable (1,943 ) - Total long-term notes payable $ 11,804 $ - |
Contingencies and Commitments (
Contingencies and Commitments (Tables) | 12 Months Ended |
Nov. 01, 2019 | |
Commitments and Contingencies Disclosure [Abstract] | |
Schedule of Future Minimum Lease Payments | The following is a schedule by years of future minimum lease payments for transportation leases: Fiscal Year Financing 2021 $ 102 2022 102 2023 102 2024 102 2025 102 Later Years 75 Total Minimum Lease Payments(a) $ 585 Less: Amount representing executory costs (76 ) Less: Amount representing interest(b) (54 ) Present value of future minimum lease payments(c) $ 455 (a) Minimum payments exclude contingent rentals based on actual mileage and adjustments of rental payments based on the Consumer Price Index. (b) Amount necessary to reduce net minimum lease payments to present value calculated at the Entity’s incremental borrowing rate at the inception of the leases. (c) Reflected in the Note 2, as current and noncurrent obligations under capital leases of $95 and $360, respectively. |
Segment Information (Tables)
Segment Information (Tables) | 12 Months Ended |
Nov. 01, 2019 | |
Segment Reporting [Abstract] | |
Schedule of Segment Reporting Information, by Segment | The following segment information is for the fiscal years ended November 1, 2019 (52 weeks) and November 2, 2018 (52 weeks): Segment Information 2019 Frozen Food Products Snack Food Products Other Totals Net Sales $ 51,234 $ 137,551 $ - $ 188,785 Cost of products sold 33,444 93,677 - 127,121 Gross margin 17,790 43,874 - 61,664 SG&A 14,867 37,970 - 52,837 (Gain) loss on sale of property, plant and equipment (4 ) 294 - 290 Income before taxes $ 2,927 $ 5,610 $ - $ 8,537 Total assets $ 12,198 $ 90,221 $ 21,037 $ 123,456 Additions to PP&E $ 654 $ 25,085 $ - $ 25,739 Segment Information 2018 Frozen Food Products Snack Food Products Other Totals Net Sales $ 47,266 $ 126,991 $ - $ 174,257 Cost of products sold 30,992 86,759 - 117,751 Gross margin 16,274 40,232 - 56,506 SG&A 14,226 35,703 - 49,929 Gain on sale of property, plant and equipment (242 ) (17 ) (5,977 ) (6,236 ) Income before taxes $ 2,290 $ 4,546 $ 5,977 $ 12,813 Total assets $ 11,902 $ 64,429 $ 25,163 $ 101,494 Additions to PP&E $ 981 $ 17,166 $ - $ 18,147 |
Schedule of Disaggregates Our Sales to Customers | The following information further disaggregates our sales to customers by major distribution channel and customer type for the fiscal year ended November 1, 2019. 2019 Distribution Channel Retail (a) Foodservice (b) Totals Direct store delivery $ 100,936 $ - $ 100,936 Direct customer warehouse 36,615 - 36,615 Total Snack Food Products 137,551 - 137,551 Distributors 6,915 44,319 51,234 Total Frozen Food Products 6,915 44,319 51,234 Total Net Sales $ 144,466 $ 44,319 $ 188,785 (a) Includes sales to food retailers, such as grocery retailers, warehouse club stores, and internet-based retailers. (b) Includes sales to foodservice distributors, restaurant operators, hotel chains and noncommercial foodservice establishments such as schools, convenience stores, healthcare facilities and the military. |
The Company and Summary of Si_3
The Company and Summary of Significant Accounting Policies (Details Narrative) $ in Thousands | Dec. 23, 2019USD ($) | Dec. 19, 2019USD ($) | Apr. 15, 2019USD ($) | Dec. 26, 2018USD ($) | Nov. 01, 2019USD ($)Segment | Nov. 02, 2018USD ($) | Jan. 24, 2020USD ($) | Nov. 24, 2019USD ($) |
Proceeds from loan borrowed | $ 2,000 | |||||||
Accounts receivable, allowance for doubtful accounts | $ 31 | $ 33 | ||||||
Number of reportable segments | Segment | 2 | |||||||
Cost incurred | $ 127,121 | 117,751 | ||||||
Advertising expense | 2,574 | 2,713 | ||||||
Cash equivalents, at carrying value | $ 3,478 | 8,179 | ||||||
Property, plant and equipment, useful life | ||||||||
Stock-based compensation | ||||||||
Building and Improvements [Member] | Minimum [Member] | ||||||||
Property, plant and equipment, useful life | 10 years | |||||||
Building and Improvements [Member] | Maximum [Member] | ||||||||
Property, plant and equipment, useful life | 20 years | |||||||
Machinery and Equipment [Member] | Minimum [Member] | ||||||||
Property, plant and equipment, useful life | 5 years | |||||||
Machinery and Equipment [Member] | Maximum [Member] | ||||||||
Property, plant and equipment, useful life | 10 years | |||||||
Transportation Equipment [Member] | Minimum [Member] | ||||||||
Property, plant and equipment, useful life | 3 years | |||||||
Transportation Equipment [Member] | Maximum [Member] | ||||||||
Property, plant and equipment, useful life | 5 years | |||||||
Shipping and Handling Costs [Member] | ||||||||
Cost incurred | $ 5,012 | 3,883 | ||||||
Promotional Allowances [Member] | ||||||||
Cost incurred | $ 11,105 | $ 8,840 | ||||||
Sales Revenue, Net [Member] | Wal-Mart [Member] | ||||||||
Concentration risk, percentage | 35.70% | 36.40% | ||||||
Sales Revenue, Net [Member] | Dollar General [Member] | ||||||||
Concentration risk, percentage | 11.10% | 9.60% | ||||||
Accounts Receivable [Member] | Wal-Mart [Member] | ||||||||
Concentration risk, percentage | 31.90% | 31.30% | ||||||
Accounts Receivable [Member] | Dollar General [Member] | ||||||||
Concentration risk, percentage | 21.70% | 23.50% | ||||||
Wells Fargo Bank N.A [Member] | ||||||||
Line of credit | $ 2,000 | |||||||
Master Collateral Loan and Security Agreement [Member] | Wells Fargo Bank N.A [Member] | ||||||||
Proceeds from loan borrowed | $ 15,000 | |||||||
Loan term | 7 years | |||||||
Financial covenants, description | Total Liabilities divided by Tangible Net Worth (as defined) not greater than 2.5 to 1.0 at each fiscal quarter, Quick Ratio (as defined) not less than 1.0 to 1.0 at each fiscal quarter end, and Net income after taxes not less than one dollar on a quarterly basis, determined as of each fiscal quarter end. | |||||||
Liabilities to tangible net worth ratio | 2.5 | |||||||
Quick ratio | 1 | |||||||
Financial covenants net income after tax, minimum | $ 1 | |||||||
Subsequent Event [Member] | Wells Fargo Bank N.A [Member] | ||||||||
Line of credit | $ 2,500 | |||||||
Subsequent Event [Member] | Third Master Collateral Loan and Security Agreement [Member] | Wells Fargo Bank N.A [Member] | ||||||||
Proceeds from loan borrowed | $ 3,750 | |||||||
Loan term | 7 years | |||||||
Financial covenants, description | Total Liabilities divided by Tangible Net Worth not greater than 2.5 to 1.0 at each fiscal quarter, Quick Ratio not less than 1.0 to 1.0 at each fiscal quarter end, and Net income after taxes not less than one dollar on a quarterly basis, determined as of each fiscal quarter end. | |||||||
Subsequent Event [Member] | Third Master Collateral Loan and Security Agreement [Member] | Wells Fargo Bank N.A [Member] | Loan Agreement [Member] | ||||||||
Proceeds from loan borrowed | $ 3,750 | |||||||
Subsequent Event [Member] | Master Collateral Loan and Security Agreement [Member] | Wells Fargo Bank N.A [Member] | ||||||||
Proceeds from loan borrowed | $ 7,500 | |||||||
Fixed rate | 3.70% | |||||||
Debt instrument, variable rate | 1.50% | |||||||
Liabilities to tangible net worth ratio | 2.5 | |||||||
Quick ratio | 1 | |||||||
Financial covenants net income after tax, minimum | $ 1 |
Composition of Certain Financ_3
Composition of Certain Financial Statement Captions - Schedule of Composition of Certain Financial Statement (Details) - USD ($) $ in Thousands | Nov. 01, 2019 | Nov. 02, 2018 |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ||
Meat, ingredients and supplies | $ 5,283 | $ 6,455 |
Work in process | 1,562 | 1,415 |
Finished goods | 19,522 | 15,543 |
Inventories, net | 26,367 | 23,413 |
Land | 3,908 | 3,908 |
Buildings and improvements | 21,044 | 21,665 |
Machinery and equipment | 60,617 | 57,593 |
Capital leased trucks | 473 | 404 |
Transportation equipment | 8,391 | 6,981 |
Construction in process | 13,928 | 8,424 |
Property, plant and equipment, gross | 108,361 | 98,975 |
Accumulated depreciation and amortization | (54,015) | (66,337) |
Property, plant and equipment, net | 54,346 | 32,638 |
Cash surrender value benefits | 12,289 | 11,624 |
Other | 6 | 6 |
Other non-current assets | 12,295 | 11,630 |
Payroll, vacation, payroll taxes and employee benefits | 4,063 | 3,326 |
Accrued advertising and broker commissions | 648 | 489 |
Property taxes | 520 | 517 |
Other | 249 | 245 |
Accrued payroll, advertising and other expenses | 5,480 | 4,577 |
Defined benefit retirement plan | 1,150 | |
Executive retirement plans | 10 | 10 |
Incentive compensation | 4,264 | 4,796 |
Capital lease obligation | 95 | |
Customer deposits | 10 | 10 |
Postretirement healthcare benefits | 55 | 14 |
Current portion of non-current liabilities | 4,434 | 5,980 |
Defined benefit retirement plan | 14,130 | 6,903 |
Executive retirement plans | 6,418 | 5,553 |
Incentive compensation | 3,655 | 4,487 |
Capital lease obligation | 360 | |
Postretirement healthcare benefits | 665 | 504 |
Non-current liabilities | $ 25,228 | $ 17,447 |
Retirement and Other Benefit _3
Retirement and Other Benefit Plans (Details Narrative) - USD ($) $ in Thousands | 12 Months Ended | |
Nov. 01, 2019 | Nov. 02, 2018 | |
Expected long-term return on assets, percentage | 7.00% | 7.00% |
Assumptions used calculating benefit obligation, rate of compensation increase | ||
Cash surrender value of life insurance | $ 12,289 | $ 11,624 |
Defined benefit plan, contributions by employer | 875 | 3,150 |
Plan Type, 401K [Member] | ||
Defined benefit plan, contributions by employer | $ 722 | 660 |
One Percent Increase in Healthcare Cost Trend Rate [Member] | ||
Changes in healthcare cost trend rate, description | Effect of a 1% increase in healthcare cost trend rate | |
One Percent Decrease In Healthcare Cost Trend Rate [Member] | ||
Changes in healthcare cost trend rate, description | Effect of a 1% decrease in healthcare cost trend rate | |
Executive Retirement Plans [Member] | ||
Percent added to seasoned bond rate | 2.00% | |
Other postretirement benefits payable | $ 6,428 | 5,553 |
Cash surrender value of life insurance | 12,289 | 11,624 |
Executive Retirement Plans [Member] | Fiscal Year 2020 [Member] | ||
Estimated future employer contribution | $ 0 | |
Non-qualified Supplemental Executive Retirement Plan [Member] | ||
Assumptions used calculating benefit obligation, rate of compensation increase | 60.00% | |
Incentive Compensation Plan [Member] | Key Executives [Member] | ||
Deferred compensation arrangement with individual, recorded liability | $ 7,919 | $ 9,283 |
Incentive Compensation Plan [Member] | Key Executives [Member] | Fiscal 2020 [Member] | ||
Officers' compensation | 4,264 | |
Incentive Compensation Plan [Member] | Key Executives [Member] | Fiscal 2021 [Member] | ||
Officers' compensation | 2,283 | |
Incentive Compensation Plan [Member] | Key Executives [Member] | Fiscal 2022 [Member] | ||
Officers' compensation | 1,221 | |
Incentive Compensation Plan [Member] | Key Executives [Member] | Fiscal 2023 [Member] | ||
Officers' compensation | 101 | |
Incentive Compensation Plan [Member] | Key Executives [Member] | Fiscal 2024 [Member] | ||
Officers' compensation | $ 50 | |
Incentive Compensation Plan [Member] | Key Executives [Member] | Minimum [Member] | ||
Deferred incentive compensation plan payment period | 3 years | |
Incentive Compensation Plan [Member] | Key Executives [Member] | Maximum [Member] | ||
Deferred incentive compensation plan payment period | 5 years |
Retirement and Other Benefit _4
Retirement and Other Benefit Plans - Schedule of Net Pension Cost (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Nov. 01, 2019 | Nov. 02, 2018 | |
Retirement Benefits [Abstract] | ||
Service cost | $ 103 | $ 126 |
Interest cost | 2,396 | 2,248 |
Expected return on plan assets | (3,414) | (3,408) |
Amortization of unrecognized loss | 1,236 | 1,575 |
Net pension cost | $ 321 | $ 541 |
Retirement and Other Benefit _5
Retirement and Other Benefit Plans - Schedule of Assumptions Used (Details) | 12 Months Ended | |
Nov. 01, 2019 | Nov. 02, 2018 | |
Retirement Benefits [Abstract] | ||
Discount rate | 3.00% | 4.30% |
Rate of increase in salary levels | ||
Expected return on plan assets | 7.00% | 7.00% |
Retirement and Other Benefit _6
Retirement and Other Benefit Plans - Schedule of Changes in Projected Benefit Obligations (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Nov. 01, 2019 | Nov. 02, 2018 | |
Retirement Benefits [Abstract] | ||
Fair value of plan assets - beginning of year | $ 49,434 | $ 48,208 |
Employer contributions | 875 | 3,150 |
Actual return on plan assets | 5,402 | (242) |
Benefits paid | (1,819) | (1,682) |
Fair value of plan assets - end of year | 53,892 | 49,434 |
Benefit obligations - beginning of year | 57,487 | 62,480 |
Service cost | 103 | 126 |
Interest cost | 2,396 | 2,248 |
Actuarial gain (loss) | 9,856 | (5,686) |
Benefits paid | (1,820) | (1,681) |
Benefit obligations - end of year | 68,022 | 57,487 |
Funded status of the plans | (14,130) | (8,053) |
Unrecognized prior service costs | ||
Unrecognized net actuarial loss | 23,453 | 16,821 |
Net amount recognized | $ 9,323 | $ 8,768 |
Retirement and Other Benefit _7
Retirement and Other Benefit Plans - Schedule of Allocation of Plan Assets (Details) | Nov. 01, 2019 | Nov. 02, 2018 |
Actual Asset Allocation | 100.00% | 100.00% |
Target Asset Allocation | 100.00% | 100.00% |
Large Cap Equities [Member] | ||
Actual Asset Allocation | 21.80% | 21.40% |
Target Asset Allocation | 22.00% | 22.00% |
Mid Cap Equities [Member] | ||
Actual Asset Allocation | 0.00% | 0.00% |
Target Asset Allocation | 0.00% | 0.00% |
Small Cap Equities [Member] | ||
Actual Asset Allocation | 13.80% | 13.00% |
Target Asset Allocation | 12.00% | 12.00% |
International (Equities Only) [Member] | ||
Actual Asset Allocation | 25.20% | 24.70% |
Target Asset Allocation | 26.00% | 26.00% |
Fixed Income [Member] | ||
Actual Asset Allocation | 37.60% | 39.00% |
Target Asset Allocation | 39.00% | 39.00% |
Other (Government/Corporate, Bonds) [Member] | ||
Actual Asset Allocation | 0.00% | 0.00% |
Target Asset Allocation | 0.00% | 0.00% |
Cash [Member] | ||
Actual Asset Allocation | 1.60% | 1.90% |
Target Asset Allocation | 1.00% | 1.00% |
Retirement and Other Benefit _8
Retirement and Other Benefit Plans - Schedule of Fair Value of Pension Plan Assets (Details) - USD ($) $ in Thousands | Nov. 01, 2019 | Nov. 02, 2018 | Nov. 03, 2017 |
Total plan assets | $ 53,892 | $ 49,434 | $ 48,208 |
Fair Value, Inputs, Level 1 [Member] | |||
Total plan assets | 53,892 | ||
Fair Value, Inputs, Level 2 [Member] | |||
Total plan assets | |||
Fair Value, Inputs, Level 3 [Member] | |||
Total plan assets |
Retirement and Other Benefit _9
Retirement and Other Benefit Plans - Schedule of Expected Payments for Pension Benefits (Details) - Pension Plan [Member] $ in Thousands | Nov. 01, 2019USD ($) |
2020 | $ 2,376 |
2021 | 2,545 |
2022 | 2,694 |
2023 | 2,873 |
2024 | 3,034 |
2025-2029 | $ 17,053 |
Retirement and Other Benefit_10
Retirement and Other Benefit Plans - Schedule of Expected Payments for Executive Post-retirement Benefits (Details) - Executive Post-retirement Benefits [Member] $ in Thousands | Nov. 01, 2019USD ($) |
2020 | $ 524 |
2021 | 524 |
2022 | 524 |
2023 | 524 |
2024 | 524 |
2025-2029 | $ 2,619 |
Retirement and Other Benefit_11
Retirement and Other Benefit Plans - Schedule Net Periodic Post-retirement Healthcare (benefit) Cost (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Nov. 01, 2019 | Nov. 02, 2018 | |
Service cost | $ 103 | $ 126 |
Interest cost | 2,396 | 2,248 |
Net periodic postretirement healthcare (benefit) | 321 | 541 |
Post-retirement Healthcare Benefits [Member] | ||
Service cost | 9 | 13 |
Interest cost | 22 | 18 |
Amortization of prior service cost | (44) | (132) |
Amortization of actuarial gain | (7) | (41) |
Net periodic postretirement healthcare (benefit) | $ (20) | $ (142) |
Retirement and Other Benefit_12
Retirement and Other Benefit Plans - Schedule of Health Care Cost Trend Rates (Details) | 12 Months Ended | |
Nov. 01, 2019 | Nov. 02, 2018 | |
Discount rate | 3.00% | 4.30% |
Post-retirement Healthcare Benefits [Member] | ||
Discount rate | 2.92% | 4.30% |
Medical trend rate next year | 7.50% | 8.00% |
Ultimate trend rate | 5.00% | 5.00% |
Year ultimate trend rate is achieved | 2025 | 2024 |
Retirement and Other Benefit_13
Retirement and Other Benefit Plans - Schedule of Effect of One-Percentage-Point Change in Assumed Health Care Cost Trend Rates (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Nov. 01, 2019 | Nov. 02, 2018 | |
One Percent Increase in Healthcare Cost Trend Rate [Member] | ||
Interest cost plus service cost | $ 3 | $ 4 |
Accumulated postretirement healthcare obligation | 64 | 54 |
One Percent Decrease In Healthcare Cost Trend Rate [Member] | ||
Interest cost plus service cost | (3) | (3) |
Accumulated postretirement healthcare obligation | $ (53) | $ (45) |
Retirement and Other Benefit_14
Retirement and Other Benefit Plans - Schedule of Net Funded Status (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Nov. 01, 2019 | Nov. 02, 2018 | |
Benefit obligations - beginning of year | $ 57,487 | $ 62,480 |
Service cost | 103 | 126 |
Interest cost | 2,396 | 2,248 |
Actuarial gain | 9,856 | (5,686) |
Benefits paid | (1,819) | (1,682) |
Benefit obligations - end of year | 68,022 | 57,487 |
Funded status of the plans | (14,130) | (8,053) |
Postretirement Health Coverage [Member] | ||
Benefit obligations - beginning of year | 517 | 528 |
Service cost | 9 | 13 |
Interest cost | 22 | 18 |
Actuarial gain | 44 | (40) |
Benefits paid | (6) | (2) |
Benefit obligations - end of year | 586 | 517 |
Funded status of the plans | 586 | 517 |
Unrecognized prior service costs | (44) | |
Unrecognized net actuarial gain | (58) | (109) |
Unrecognized amounts recorded in other comprehensive income | 58 | 153 |
Postretirement healthcare liability | $ 586 | $ 517 |
Retirement and Other Benefit_15
Retirement and Other Benefit Plans - Schedule of Expected Payments for Postretirement Benefits (Details) - Post-retirement Healthcare Benefits [Member] $ in Thousands | Nov. 01, 2019USD ($) |
2020 | $ 65 |
2021 | 44 |
2022 | 20 |
2023-2027 | $ 103 |
Income Taxes (Details Narrative
Income Taxes (Details Narrative) - USD ($) $ in Thousands | Dec. 22, 2017 | Nov. 01, 2019 | Nov. 02, 2018 |
Valuation allowance | $ 77 | ||
Net operating loss carryforwards, expiration description | The state loss carryforwards will expire at various dates from 2023 through 2034. | ||
Deferred tax liability not recognized, amount of unrecognized deferred tax liability, undistributed earnings of domestic subsidiaries | $ 90 | 155 | |
Unrecognized tax benefits, income tax penalties and interest accrued | 18 | ||
Income tax rate, description | December 22, 2017, President Trump signed into law the Tax Cuts and Jobs Act (the "Tax Act"). The Tax Act includes significant changes to the U.S. tax code that affected our fiscal year ended November 2, 2018, and future periods, including, but not limited to, (1) reducing the corporate federal income tax rate from 35% to 21%, (2) bonus depreciation that will allow for full expensing of qualified property in the year placed in service, and (3) the repeal of the domestic production activity deduction beginning with our fiscal year 2019. Section 15 of the Internal Revenue Code (the "Code") stipulates that our fiscal year ended November 2, 2018 will have a blended corporate tax rate of 23.07%, which is based on the applicable tax rates before and after the Tax Act and the number of days in the year. | ||
Other comprehensive income to retained earnings, reclassified | |||
Accounting Standards Update 2018-02 [Member] | |||
Other comprehensive income to retained earnings, reclassified | 2,529 | ||
Federal [Member] | |||
Net operating loss carryforwards | 9,979 | ||
State [Member] | |||
Net operating loss carryforwards | $ 874 | ||
State and Local Jurisdiction [Member] | Earliest Tax Year [Member] | |||
State income tax returns, open to audit, years | 2015 | ||
State and Local Jurisdiction [Member] | Latest Tax Year [Member] | |||
State income tax returns, open to audit, years | 2018 |
Income Taxes - Schedule of Prov
Income Taxes - Schedule of Provision (Benefit) for Taxes on Income (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Nov. 01, 2019 | Nov. 02, 2018 | |
Income Tax Disclosure [Abstract] | ||
Federal | $ (177) | $ 979 |
State | 342 | 377 |
Current: Federal and State Tax Expense Benefit | 165 | 1,356 |
Federal | 1,667 | 4,715 |
State | 221 | 225 |
Deferred Federal and State Tax Expense Benefit | 1,888 | 4,940 |
Provision (benefit) for income taxes | $ 2,053 | $ 6,296 |
Income Taxes - Schedule of Tax
Income Taxes - Schedule of Tax Provision Differs from Statutory Federal Income Tax Rate (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Nov. 01, 2019 | Nov. 02, 2018 | |
Income Tax Disclosure [Abstract] | ||
Provision for federal income taxes at the applicable statutory rate | $ 1,790 | $ 2,956 |
Increase in provision resulting from state income taxes, net of federal income tax benefit | 445 | 463 |
Change in federal rate - Tax Act | 3,059 | |
Non-taxable life insurance gain | (140) | (99) |
Domestic Production Activities Deduction | (106) | |
Other, net | (42) | 23 |
Provision (benefit) for income taxes | $ 2,053 | $ 6,296 |
Income Taxes - Schedule of Defe
Income Taxes - Schedule of Deferred Income Taxes Results from Differences in Bases of Assets and Liabilities (Details) - USD ($) $ in Thousands | Nov. 01, 2019 | Nov. 02, 2018 |
Income Tax Disclosure [Abstract] | ||
Receivables allowance | $ 8 | $ 9 |
Returns allowance | 160 | 112 |
Inventory packaging reserve | 90 | 35 |
Inventory overhead capitalization | 394 | 305 |
Employee benefits | 467 | 385 |
Other | 25 | |
State taxes | (281) | (230) |
Incentive compensation | 1,794 | 2,174 |
Pension and health care benefits | 5,604 | 3,494 |
Depreciation | (6,310) | (2,274) |
Net operating loss carry-forward and credits | 2,173 | 77 |
Valuation allowance established against state NOL | (77) | (77) |
Deferred income tax assets, net | $ 4,047 | $ 4,010 |
Income Taxes - Schedule of Reco
Income Taxes - Schedule of Reconciliation of Unrecognized Tax Benefits (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Nov. 01, 2019 | Nov. 02, 2018 | |
Income Tax Disclosure [Abstract] | ||
Balance at beginning of year | $ 155 | $ 135 |
Additions based on tax positions related to the current year | 10 | |
Additions for tax positions of prior years | 10 | |
Reductions for tax positions of prior years | (65) | |
Settlements | ||
Balance at end of year | $ 90 | $ 155 |
Line of Credit and Borrowing _3
Line of Credit and Borrowing Agreement (Details Narrative) $ in Thousands | May 31, 2019USD ($) | Apr. 25, 2019USD ($) | Apr. 15, 2019USD ($) | Jan. 31, 2019USD ($) | Dec. 26, 2018USD ($) | Nov. 01, 2019USD ($) |
Proceeds from line of credit | $ 2,000 | |||||
Repayments of line of credit | $ 2,000 | |||||
First Secured Equipment Notes Payable [Member] | ||||||
Fixed rate | 4.13% | |||||
Loan term | 84 months | |||||
Debt monthly principal and interest payments | $ 103 | |||||
Second Secured Equipment Notes Payable [Member] | ||||||
Fixed rate | 3.98% | |||||
Loan term | 84 months | |||||
Debt monthly principal and interest payments | $ 102 | |||||
Wells Fargo Bank N.A [Member] | Master Collateral Loan and Security Agreement [Member] | ||||||
Proceeds from line of credit | $ 15,000 | |||||
Loan term | 7 years | |||||
Financial covenants, description | Total Liabilities divided by Tangible Net Worth (as defined) not greater than 2.5 to 1.0 at each fiscal quarter, Quick Ratio (as defined) not less than 1.0 to 1.0 at each fiscal quarter end, and Net income after taxes not less than one dollar on a quarterly basis, determined as of each fiscal quarter end. | |||||
Liabilities to tangible net worth ratio | 2.5 | |||||
Quick ratio | 1 | |||||
Financial covenants net income after tax, minimum | $ 1 | |||||
Wells Fargo Bank N.A [Member] | Master Collateral Loan and Security Agreement [Member] | Loan Agreement, Receipt One [Member] | ||||||
Proceeds from line of credit | $ 7,500 | |||||
Fixed rate | 4.13% | |||||
Loan receipt, description | The first funding of $7,500 was received on December 28, 2018. | |||||
Wells Fargo Bank N.A [Member] | Master Collateral Loan and Security Agreement [Member] | Loan Agreement, Receipt Two [Member] | ||||||
Proceeds from line of credit | $ 7,500 | |||||
Fixed rate | 3.98% | |||||
Loan receipt, description | The second funding was received on April 23, 2019. | |||||
Revolving Credit Facility [Member] | ||||||
Line of credit facility, maximum borrowing capacity | $ 7,500 | |||||
Debt covenant, maximum allowable capital expenditures | $ 7,500 | |||||
Revolving Credit Facility [Member] | LIBOR [Member] | ||||||
Debt instrument, basis spread on variable rate | 1.50% | |||||
Revolving Credit Facility [Member] | Wells Fargo Bank N.A [Member] | ||||||
Line of credit expiration date | Mar. 1, 2020 |
Line of Credit and Borrowing _4
Line of Credit and Borrowing Agreement - Schedule of Long Term Notes Payable (Details) - USD ($) $ in Thousands | Nov. 01, 2019 | Nov. 02, 2018 |
Line Of Credit And Borrowing Agreement | ||
Secured equipment notes payable to Wells Fargo Bank, N.A. collateralized by equipment for the new Chicago processing facility. | $ 13,747 | |
Less current portion of notes payable | (1,943) | |
Total long-term notes payable | $ 11,804 |
Contingencies and Commitments_2
Contingencies and Commitments (Details Narrative) $ in Thousands | 12 Months Ended |
Nov. 01, 2019USD ($) | |
Commitments and Contingencies Disclosure [Abstract] | |
Lease term, description | The Company leases three long-haul trucks received during fiscal 2019. Six-year leases for semi-trucks expire in 2025. |
Amortization of equipment under capital lease | $ 34 |
Contingencies and Commitments -
Contingencies and Commitments - Schedule of Future Minimum Lease Payments (Details) $ in Thousands | Nov. 01, 2019USD ($) | |
Commitments and Contingencies Disclosure [Abstract] | ||
2021 | $ 102 | |
2022 | 102 | |
2023 | 102 | |
2024 | 102 | |
2025 | 102 | |
Later Years | 75 | |
Total Minimum Lease Payments(a) | 585 | [1] |
Less: Amount representing executory costs | (76) | |
Less: Amount representing interest(b) | (54) | [2] |
Present value of future minimum lease payments(c) | $ 455 | [3] |
[1] | Minimum payments exclude contingent rentals based on actual mileage and adjustments of rental payments based on the Consumer Price Index. | |
[2] | Amount necessary to reduce net minimum lease payments to present value calculated at the Entity's incremental borrowing rate at the inception of the leases. | |
[3] | Reflected in the Note 2, as current and noncurrent obligations under capital leases of $95 and $360, respectively. |
Contingencies and Commitments_3
Contingencies and Commitments - Schedule of Future Minimum Lease Payments (Details) (Parenthetical) - USD ($) $ in Thousands | Nov. 01, 2019 | Nov. 02, 2018 |
Commitments and Contingencies Disclosure [Abstract] | ||
Capital lease obligation current | $ 95 | |
Capital lease obligation noncurrent | $ 360 |
Segment Information (Details Na
Segment Information (Details Narrative) | 12 Months Ended |
Nov. 01, 2019Segment | |
Segment Reporting [Abstract] | |
Number of operating segments | 2 |
Segment Information - Schedule
Segment Information - Schedule of Segment Reporting Information, by Segment (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Nov. 01, 2019 | Nov. 02, 2018 | |
Net Sales | $ 188,785 | $ 174,257 |
Cost of products sold | 127,121 | 117,751 |
Gross margin | 61,664 | 56,506 |
SG&A | 52,837 | 49,929 |
(Gain) loss on sale of property, plant and equipment | (290) | 6,236 |
Income before taxes | 8,537 | 12,813 |
Total assets | 123,456 | 101,494 |
Additions to PP&E | 25,739 | 18,147 |
Frozen Food Products [Member] | ||
Net Sales | 51,234 | 47,266 |
Cost of products sold | 33,444 | 30,992 |
Gross margin | 17,790 | 16,274 |
SG&A | 14,867 | 14,226 |
(Gain) loss on sale of property, plant and equipment | (4) | (242) |
Income before taxes | 2,927 | 2,290 |
Total assets | 12,198 | 11,902 |
Additions to PP&E | 654 | 981 |
Snack Food Products [Member] | ||
Net Sales | 137,551 | 126,991 |
Cost of products sold | 93,677 | 86,759 |
Gross margin | 43,874 | 40,232 |
SG&A | 37,970 | 35,703 |
(Gain) loss on sale of property, plant and equipment | 294 | (17) |
Income before taxes | 5,610 | 4,546 |
Total assets | 90,221 | 64,429 |
Additions to PP&E | 25,085 | 17,166 |
Other [Member] | ||
Net Sales | ||
Cost of products sold | ||
Gross margin | ||
SG&A | ||
(Gain) loss on sale of property, plant and equipment | (5,977) | |
Income before taxes | 5,977 | |
Total assets | 21,037 | 25,163 |
Additions to PP&E |
Segment Information - Schedul_2
Segment Information - Schedule of Disaggregates Our Sales to Customers (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Nov. 01, 2019 | Nov. 02, 2018 | ||
Direct store delivery | $ 100,936 | ||
Direct customer warehouse | 36,615 | ||
Total Snack Food Products | 137,551 | ||
Distributors | 51,234 | ||
Total Frozen Food Products | 51,234 | ||
Total Net Sales | 188,785 | $ 174,257 | |
Retail [Member] | |||
Direct store delivery | [1] | 100,936 | |
Direct customer warehouse | [1] | 36,615 | |
Total Snack Food Products | [1] | 137,551 | |
Distributors | [1] | 6,915 | |
Total Frozen Food Products | [1] | 6,915 | |
Total Net Sales | [1] | 144,466 | |
Foodservice [Member] | |||
Direct store delivery | [2] | ||
Direct customer warehouse | [2] | ||
Total Snack Food Products | [2] | ||
Distributors | [2] | 44,319 | |
Total Frozen Food Products | [2] | 44,319 | |
Total Net Sales | [2] | $ 44,319 | |
[1] | Includes sales to food retailers, such as grocery retailers, warehouse club stores, and internet-based retailers. | ||
[2] | Includes sales to foodservice distributors, restaurant operators, hotel chains and noncommercial foodservice establishments such as schools, convenience stores, healthcare facilities and the military. |