Document And Entity Information
Document And Entity Information - shares | 3 Months Ended | |
Aug. 28, 2015 | Sep. 25, 2015 | |
Document Information [Line Items] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Aug. 28, 2015 | |
Document Fiscal Year Focus | 2,016 | |
Document Fiscal Period Focus | Q1 | |
Trading Symbol | GLDC | |
Entity Registrant Name | GOLDEN ENTERPRISES INC | |
Entity Central Index Key | 42,228 | |
Current Fiscal Year End Date | --06-03 | |
Entity Filer Category | Smaller Reporting Company | |
Entity Common Stock, Shares Outstanding | 11,291,757 |
CONDENSED CONSOLIDATED BALANCE
CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) | Aug. 28, 2015 | May. 29, 2015 |
CURRENT ASSETS | ||
Cash and cash equivalents | $ 1,329,187 | $ 1,159,449 |
Receivables, net | 10,460,387 | 11,085,689 |
Inventories: | ||
Raw materials and supplies | 1,998,688 | 1,781,397 |
Finished goods | 3,476,241 | 3,460,800 |
Inventories, net | 5,474,929 | 5,242,197 |
Prepaid expenses | 1,555,905 | 1,350,201 |
Income taxes receivable | 0 | 476,154 |
Deferred income taxes | 1,139,433 | 1,139,433 |
Total current assets | 19,959,841 | 20,453,123 |
Property, plant and equipment, net | 23,727,055 | 24,488,478 |
Other assets | 1,540,200 | 1,603,454 |
Total | 45,227,096 | 46,545,055 |
CURRENT LIABILITIES | ||
Checks outstanding in excess of bank balances | 1,229,408 | 1,068,745 |
Accounts payable | 3,816,518 | 4,049,333 |
Accrued income taxes | 78,678 | 0 |
Current portion of long-term debt | 806,178 | 799,204 |
Current portion of capital lease obligation | 31,974 | 0 |
Other accrued expenses | 5,170,237 | 5,021,286 |
Salary continuation plan | 108,285 | 106,148 |
Line of credit outstanding | 831,169 | 2,823,477 |
Total current liabilities | 12,072,447 | 13,868,193 |
LONG-TERM LIABILITIES | ||
Notes payable - bank, non-current | 6,009,048 | 6,213,513 |
Capital lease obligation | 61,383 | 0 |
Salary continuation plan | 923,492 | 921,882 |
Deferred income taxes | 3,856,793 | 3,856,793 |
Total long-term liabilities | 10,850,716 | 10,992,188 |
STOCKHOLDERS' EQUITY | ||
Common stock - $.66-2/3 par value: 35,000,000 shares authorized Issued 13,828,793 shares | 9,219,195 | 9,219,195 |
Additional paid-in capital | 6,635,502 | 6,552,973 |
Retained earnings | 19,586,230 | 19,049,500 |
Stockholder's equity before treasury stock | 35,440,927 | 34,821,668 |
Less: Cost of common shares in treasury (2,537,036 shares at August 28, 2015 and May 29, 2015) | (13,136,994) | (13,136,994) |
Total stockholders' equity | 22,303,933 | 21,684,674 |
Total | $ 45,227,096 | $ 46,545,055 |
CONDENSED CONSOLIDATED BALANCE3
CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares | Aug. 28, 2015 | May. 29, 2015 |
Common stock, par value | $ 0.667 | $ 0.667 |
Common stock, shares authorized | 35,000,000 | 35,000,000 |
Common stock, shares issued | 13,828,793 | 13,828,793 |
Treasury stock, shares | 2,537,036 | 2,537,036 |
CONDENSED CONSOLIDATED STATEMEN
CONDENSED CONSOLIDATED STATEMENTS OF INCOME - USD ($) | 3 Months Ended | |
Aug. 28, 2015 | Aug. 29, 2014 | |
Net sales | $ 33,732,141 | $ 34,125,036 |
Cost of sales | 16,542,421 | 17,002,866 |
Gross margin | 17,189,720 | 17,122,170 |
Selling, general and administrative expenses | 15,651,810 | 16,025,248 |
Operating income | 1,537,910 | 1,096,922 |
Other income (expenses): | ||
Gain on sale of assets | 0 | 243,944 |
Interest expense | (99,512) | (139,867) |
Other income | 10,237 | 16,786 |
Total other (expenses) income | (89,275) | 120,863 |
Income before income taxes | 1,448,635 | 1,217,785 |
Income taxes | 559,037 | 450,559 |
Net income | $ 889,598 | $ 767,226 |
PER SHARE OF COMMON STOCK | ||
Basic and diluted earnings | $ 0.08 | $ 0.07 |
Weighted average number of common stock share outstanding: | ||
Basic and diluted | 11,291,757 | 11,732,632 |
Cash dividends paid per share of common stock | $ 0.0313 | $ 0.0313 |
CONDENSED CONSOLIDATED STATEME5
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) | 3 Months Ended | |
Aug. 28, 2015 | Aug. 29, 2014 | |
CASH FLOWS FROM OPERATING ACTIVITIES | ||
Cash received from customers | $ 34,357,443 | $ 34,410,072 |
Miscellaneous income | 10,237 | 16,786 |
Cash paid to suppliers and employees | (16,398,328) | (17,125,607) |
Cash paid for operating expenses | (15,195,277) | (15,935,446) |
Income taxes paid | (4,205) | (482,270) |
Interest expenses paid | (99,512) | (139,867) |
Net cash provided by operating activities | 2,670,358 | 743,668 |
CASH FLOWS FROM INVESTING ACTIVITIES | ||
Purchase of property, plant and equipment | (113,387) | (107,602) |
Proceeds from sale of property, plant and equipment | 0 | 243,944 |
Net cash (used in) provided by investing activities | (113,387) | 136,342 |
CASH FLOWS FROM FINANCING ACTIVITIES | ||
Debt proceeds | 6,492,033 | 8,554,850 |
Debt repayments | (8,681,832) | (8,942,587) |
Principal payments under capital lease obligation | (5,229) | 0 |
Change in checks outstanding in excess of bank balances | 160,663 | 165,174 |
Cash dividends paid | (352,868) | (366,645) |
Net cash used in financing activities | (2,387,233) | (589,208) |
Net change in cash and cash equivalents | 169,738 | 290,802 |
Cash and cash equivalents at beginning of period | 1,159,449 | 1,160,630 |
Cash and cash equivalents at end of period | 1,329,187 | 1,451,432 |
Supplemental Cash Flow Information [Abstract] | ||
Capital Lease Obligations Incurred | 98,586 | |
RECONCILIATION OF NET INCOME TO NET CASH FROM OPERATING ACTIVITIES | ||
Net Income | 889,598 | 767,226 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Depreciation and amortization | 973,396 | 988,948 |
Gain on sale of property and equipment | 0 | (243,944) |
Stock based compensation | 82,529 | 0 |
Changes in operating assets and liabilities: | ||
Change in receivables - net | 625,302 | 285,036 |
Change in inventories | (232,732) | (736,246) |
Change in prepaid expenses | (205,704) | 66,950 |
Change in other assets | 63,254 | 32,327 |
Change in accounts payable | (232,815) | (62,254) |
Change in accrued expenses | 148,951 | (293,856) |
Change in salary continuation | 3,747 | (28,808) |
Change in accrued income taxes | 554,832 | (31,711) |
Net cash provided by operating activities | $ 2,670,358 | $ 743,668 |
Significant accounting policies
Significant accounting policies | 3 Months Ended |
Aug. 28, 2015 | |
Accounting Policies [Abstract] | |
Significant accounting policies | 1. Golden Flake Snack Foods, Inc. is a wholly-owned subsidiary of Golden Enterprises, Inc. The accompanying unaudited interim condensed consolidated financial statements of Golden Enterprises, Inc. (the “Company”, “we”, or “our”), which includes the accounts of Golden Enterprises, Inc. and subsidiary, have been prepared in accordance with accounting principles generally accepted in the United States of America (GAAP) for interim condensed consolidated financial information and with the instructions to Form 10-Q. Accordingly, they do not include all information and footnotes required by GAAP for complete financial statements. In the opinion of management, all adjustments (consisting only of normal, recurring accruals) necessary for a fair presentation have been included. These unaudited interim condensed consolidated financial statements should be read in conjunction with the Consolidated Financial Statements and Notes included in our Form 10-K for the year ended May 29, 2015 which can be found on our website at www.goldenflake.com/financial.html The consolidated financial position, results of operations, and cash flows for the thirteen weeks ended August 28, 2015 are not necessarily indicative of the results to be expected for the fifty-three week fiscal year ending June 3, 2016. Significant accounting policies: Inventories Raw materials and finished goods are stated at the lower of cost or market. Cost is computed on the first-in, first-out method. Revenue Recognition The Company recognizes sales and related costs upon delivery or shipment of products to its customers. Sales are reduced by estimated returns and allowances to customers. Accounts Receivable The Company records accounts receivable at the time revenue is recognized. Amounts for bad debt expense are recorded in selling, general and administrative expenses. The determination of the allowance for doubtful accounts is based on management’s estimate of uncollectible accounts receivables. The Company records its reserve based on analysis of historical data while also considering general economic factors and specific reserves for receivable balances that are considered higher risk due to known facts regarding the customer. Use of Estimates The preparation of financial statements in conformity with GAAP requires management to make 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 and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. |
Earnings Per Share
Earnings Per Share | 3 Months Ended |
Aug. 28, 2015 | |
Earnings Per Share [Abstract] | |
Earnings Per Share | 2. Basic earnings per common share, as presented on the interim condensed consolidated statements of income, are computed by dividing earnings available to common stockholders by the weighted average number of common shares outstanding during the period. Diluted earnings per share reflects per share amounts that would have resulted if dilutive potential common stock equivalents had been converted to common stock, as prescribed by Financial Accounting Standards Board (FASB) Accounting Standards Codification (ASC) 260, “Earnings per Share”. At August 28, 2015, options on the 310,000 |
Prepaid Expenses
Prepaid Expenses | 3 Months Ended |
Aug. 28, 2015 | |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | |
Prepaid Expenses | 3. August 28, 2015 May 29, 2015 Truck shop supplies $ 306,359 $ 320,622 Insurance deposit 48,548 48,548 Prepaid marketplace spending 170,787 201,373 Prepaid insurance 639,646 369,864 Prepaid taxes/licenses 88,527 113,042 Prepaid dues/supplies 166,304 - Other 135,734 296,752 $ 1,555,905 $ 1,350,201 |
Other Accrued Expenses
Other Accrued Expenses | 3 Months Ended |
Aug. 28, 2015 | |
Payables and Accruals [Abstract] | |
Other Accrued Expenses | 4. The following tables summarize other accrued expenses at August 28, 2015 and May 29, 2015: August 28, 2015 May 29, 2015 Accrued salary and benefits $ 2,801,045 $ 2,526,338 Accrued workers compensation 1,264,754 1,472,182 Accrued other 1,104,438 1,022,766 $ 5,170,237 $ 5,021,286 |
Raw Materials and Supplies
Raw Materials and Supplies | 3 Months Ended |
Aug. 28, 2015 | |
Inventory Disclosure [Abstract] | |
Raw Materials and Supplies | 5. The principal raw materials used in the manufacture of the Company’s snack food products are potatoes, corn, pork skin pellets, vegetable oils, and seasoning. The principal supplies used are flexible film, cartons, trays, boxes, and bags. These raw materials and supplies are generally available in adequate quantities in the open market from sources in the United States and are generally contracted up to a year in advance. The Company’s financial instruments that are exposed to concentrations of credit risk consist primarily of cash equivalents and trade receivables. The Company maintains deposit relationships with high credit quality financial institutions. The Company’s trade receivables result primarily from its snack food operations and reflect a broad customer base, primarily large grocery store chains located in the southeastern United States. The Company routinely assesses the financial strength of its customers. As a consequence, concentrations of credit risk are limited. The Company did not have any major customer write-offs this quarterly period that were not covered by credit insurance or during the quarterly period ended August 29, 2014. |
Letter of Credit
Letter of Credit | 3 Months Ended |
Aug. 28, 2015 | |
Line of Credit Facility [Abstract] | |
Letter of Credit | 6. The Company has a letter of credit with a local bank in the amount of $1,850,000 at August 28, 2015 and May 29, 2015. The letter of credit supports the Company’s commercial self-insurance program. |
Line of Credit Agreement
Line of Credit Agreement | 3 Months Ended |
Aug. 28, 2015 | |
Debt Disclosure [Abstract] | |
Line of Credit Agreement | 7. The Company has a line-of-credit agreement with a local bank that permits borrowing up to $3,000,000 at August 28, 2015 and May 29, 2015. The line-of-credit is subject to the Company’s continued credit worthiness and compliance at August 28, 2015 and at August 29, 2014 with the terms and conditions of the loan agreement. The Company’s line-of-credit debt as of August 28, 2015 was $831,169 with an interest rate of 3.25%, leaving the Company with $2,168,831 of credit availability. The Company’s line-of-credit debt as of May 29, 2015 was $2,823,477 with an interest rate of 3.25%, leaving the Company with $176,523 of credit availability. |
Notes Payable
Notes Payable | 3 Months Ended |
Aug. 28, 2015 | |
Debt Disclosure [Abstract] | |
Notes Payable | 8. The Company has two notes payable with a local bank as of August 28, 2015. The first note was established as a construction loan in March 2009 to help fund the construction of a process water treatment facility. In September 2009, the note converted to a 10 4.25 4,000,000 3,532,700 2,900,000 3.52 15 4,850,013 4,944,233 |
Income Tax
Income Tax | 3 Months Ended |
Aug. 28, 2015 | |
Income Tax Disclosure [Abstract] | |
Income Tax | 9. The Company’s effective tax rate for the thirteen weeks ended August 28, 2015 was 38.6% compared to 37.0% for the thirteen weeks ended August 29, 2014. These rates differ from the Federal statutory rate primarily due to the effect of state taxes and the permanent non-deductibility of certain expenses for income tax purposes. |
Significant accounting polici15
Significant accounting policies (Policy) | 3 Months Ended |
Aug. 28, 2015 | |
Accounting Policies [Abstract] | |
Inventories | Inventories Raw materials and finished goods are stated at the lower of cost or market. Cost is computed on the first-in, first-out method. |
Revenue Recognition | Revenue Recognition The Company recognizes sales and related costs upon delivery or shipment of products to its customers. Sales are reduced by estimated returns and allowances to customers. |
Accounts Receivable | Accounts Receivable The Company records accounts receivable at the time revenue is recognized. Amounts for bad debt expense are recorded in selling, general and administrative expenses. The determination of the allowance for doubtful accounts is based on management’s estimate of uncollectible accounts receivables. The Company records its reserve based on analysis of historical data while also considering general economic factors and specific reserves for receivable balances that are considered higher risk due to known facts regarding the customer. |
Use of Estimates | Use of Estimates The preparation of financial statements in conformity with GAAP requires management to make 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 and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. |
Prepaid Expenses (Tables)
Prepaid Expenses (Tables) | 3 Months Ended |
Aug. 28, 2015 | |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | |
Prepaid Expenses | The following tables summarize the prepaid expenses accounts at August 28, 2015 and May 29, 2015: August 28, 2015 May 29, 2015 Truck shop supplies $ 306,359 $ 320,622 Insurance deposit 48,548 48,548 Prepaid marketplace spending 170,787 201,373 Prepaid insurance 639,646 369,864 Prepaid taxes/licenses 88,527 113,042 Prepaid dues/supplies 166,304 - Other 135,734 296,752 $ 1,555,905 $ 1,350,201 |
Other Accrued Expenses (Tables)
Other Accrued Expenses (Tables) | 3 Months Ended |
Aug. 28, 2015 | |
Payables and Accruals [Abstract] | |
Other Accrued Expenses | The following tables summarize other accrued expenses at August 28, 2015 and May 29, 2015: August 28, 2015 May 29, 2015 Accrued salary and benefits $ 2,801,045 $ 2,526,338 Accrued workers compensation 1,264,754 1,472,182 Accrued other 1,104,438 1,022,766 $ 5,170,237 $ 5,021,286 |
Earnings Per Share (Details Tex
Earnings Per Share (Details Textual) - shares | 3 Months Ended | |
Aug. 28, 2015 | Aug. 29, 2014 | |
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount | 0 | |
Employee Stock Option [Member] | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount | 310,000 |
Prepaid Expenses (Details)
Prepaid Expenses (Details) - USD ($) | Aug. 28, 2015 | May. 29, 2015 |
Truck shop supplies | $ 306,359 | $ 320,622 |
Insurance deposit | 48,548 | 48,548 |
Prepaid marketplace spending | 170,787 | 201,373 |
Prepaid insurance | 639,646 | 369,864 |
Prepaid taxes/licenses | 88,527 | 113,042 |
Prepaid dues/supplies | 166,304 | 0 |
Other | 135,734 | 296,752 |
Prepaid Expense, Current, Total | $ 1,555,905 | $ 1,350,201 |
Other Accrued Expenses (Detail)
Other Accrued Expenses (Detail) - USD ($) | Aug. 28, 2015 | May. 29, 2015 |
Accrued salary and benefits | $ 2,801,045 | $ 2,526,338 |
Accrued workers compensation | 1,264,754 | 1,472,182 |
Accrued other | 1,104,438 | 1,022,766 |
Employee-related Liabilities, Total | $ 5,170,237 | $ 5,021,286 |
Letter of Credit (Details Textu
Letter of Credit (Details Textual) - USD ($) | Aug. 28, 2015 | May. 29, 2015 |
Line of Credit Facility [Line Items] | ||
Letters of Credit Outstanding, Amount | $ 1,850,000 | $ 1,850,000 |
Line of Credit Agreement (Detai
Line of Credit Agreement (Details Textual) - USD ($) | Aug. 28, 2015 | May. 29, 2015 |
Line of Credit Facility, Maximum Borrowing Capacity | $ 3,000,000 | $ 3,000,000 |
Line of Credit, Current | $ 831,169 | $ 2,823,477 |
Line of Credit Facility, Interest Rate at Period End | 3.25% | 3.25% |
Line of Credit Facility, Remaining Borrowing Capacity | $ 2,168,831 | $ 176,523 |
Notes Payable (Details Textual)
Notes Payable (Details Textual) - USD ($) | 1 Months Ended | |||||
Jan. 30, 2015 | Mar. 31, 2011 | Sep. 30, 2009 | Aug. 28, 2015 | Jul. 31, 2015 | May. 29, 2015 | |
Debt Instrument [Line Items] | ||||||
Debt Instrument, Term | 5 years | 15 years | 10 years | |||
Debt Instrument, Interest Rate, Stated Percentage | 3.30% | 3.52% | 4.25% | |||
Debt Instrument, Face Amount | $ 2,204,375 | $ 2,900,000 | $ 4,000,000 | $ 1,965,213 | $ 2,068,484 | |
Notes Payable to Bank, Total | $ 3,532,700 | |||||
Notes Payable, Noncurrent | 4,850,013 | 4,944,233 | ||||
Stock Repurchase Program, Authorized Amount | 440,875 | |||||
Capital Lease Obligations, Total | $ 93,357 | $ 98,586 | $ 0 |
Income Tax (Details Textual)
Income Tax (Details Textual) | 3 Months Ended | |
Aug. 28, 2015 | Aug. 29, 2014 | |
Income Tax [Line Items] | ||
Effective Income Tax Rate Reconciliation, Percent, Total | 38.60% | 37.00% |