Document And Entity Information
Document And Entity Information - USD ($) | 12 Months Ended | ||
Jun. 03, 2016 | Jun. 30, 2016 | Nov. 27, 2015 | |
Document Information [Line Items] | |||
Document Type | 10-K | ||
Amendment Flag | false | ||
Document Period End Date | Jun. 3, 2016 | ||
Document Fiscal Year Focus | 2,016 | ||
Document Fiscal Period Focus | FY | ||
Entity Registrant Name | GOLDEN ENTERPRISES INC | ||
Entity Central Index Key | 42,228 | ||
Current Fiscal Year End Date | --06-03 | ||
Entity Well-known Seasoned Issuer | No | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Filer Category | Smaller Reporting Company | ||
Entity Public Float | $ 18,660,606 | ||
Trading Symbol | GLDC | ||
Entity Common Stock, Shares Outstanding | 11,291,757 |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) | Jun. 03, 2016 | May 29, 2015 |
CURRENT ASSETS | ||
Cash and cash equivalents | $ 1,993,854 | $ 1,159,449 |
Receivables: | ||
Trade accounts | 10,456,553 | 11,079,806 |
Other | 370,433 | 75,883 |
Receivables, gross | 10,826,986 | 11,155,689 |
Less: Allowance for doubtful accounts | 160,000 | 70,000 |
Receivables, net | 10,666,986 | 11,085,689 |
Inventories: | ||
Raw materials | 1,980,660 | 1,781,397 |
Finished goods | 3,754,450 | 3,460,800 |
Inventories, net | 5,735,110 | 5,242,197 |
Prepaid expenses | 1,275,918 | 1,350,201 |
Income tax receivable | 22,473 | 476,154 |
Total current assets | 19,694,341 | 19,313,690 |
PROPERTY, PLANT AND EQUIPMENT | ||
Land | 2,769,499 | 2,769,499 |
Buildings | 19,012,206 | 18,787,967 |
Machinery and equipment | 68,477,382 | 67,543,226 |
Transportation equipment | 7,931,905 | 8,268,311 |
Property, plant and equipment, gross | 98,190,992 | 97,369,003 |
Less: Accumulated depreciation | 76,156,389 | 72,880,525 |
Property, plant and equipment, net | 22,034,603 | 24,488,478 |
OTHER ASSETS | ||
Cash surrender value of life insurance | 438,429 | 630,259 |
Other | 917,533 | 973,195 |
Total other assets | 1,355,962 | 1,603,454 |
TOTAL | 43,084,906 | 45,405,622 |
CURRENT LIABILITIES | ||
Checks outstanding in excess of bank balances | 0 | 1,068,745 |
Accounts payable | 4,235,488 | 4,049,333 |
Current portion of long-term debt | 837,225 | 799,204 |
Current portion of capital lease obligation | 56,203 | 0 |
Line of credit outstanding | 0 | 2,823,477 |
Other accrued expenses | 5,158,236 | 5,021,286 |
Salary continuation plan | 114,958 | 106,148 |
Total current liabilities | 10,402,110 | 13,868,193 |
LONG-TERM LIABILITIES | ||
Note payable-bank, non-current | 5,351,057 | 6,213,513 |
Capital lease obligation | 152,209 | 0 |
Salary continuation plan | 920,440 | 921,882 |
Deferred income taxes, net | 2,632,762 | 2,717,360 |
Total long-term liabilities | 9,056,468 | 9,852,755 |
STOCKHOLDERS' EQUITY | ||
Common stock - $.66 2/3 par value: Authorized 35,000,000 shares; issued 13,828,793 shares | 9,219,195 | 9,219,195 |
Additional paid-in capital | 6,805,984 | 6,552,973 |
Retained earnings | 20,738,143 | 19,049,500 |
Treasury shares - at cost (2,537,036 shares in 2016 and 2015) | (13,136,994) | (13,136,994) |
Total stockholders' equity | 23,626,328 | 21,684,674 |
TOTAL | $ 43,084,906 | $ 45,405,622 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares | Jun. 03, 2016 | 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 |
CONSOLIDATED STATEMENTS OF INCO
CONSOLIDATED STATEMENTS OF INCOME - USD ($) | 12 Months Ended | |
Jun. 03, 2016 | May 29, 2015 | |
Net sales | $ 135,870,580 | $ 131,724,721 |
Cost of sales | 67,595,536 | 66,154,484 |
Gross margin | 68,275,044 | 65,570,237 |
Selling, general and administrative expenses | 63,398,959 | 62,489,402 |
Restructuring charges | 0 | (49,266) |
Operating income | 4,876,085 | 3,130,101 |
Other (expenses) income: | ||
Gain on sale of assets | 56,446 | 283,256 |
Interest expense | (335,562) | (458,184) |
Other income | 97,108 | 111,257 |
Total other (expenses) income | (182,008) | (63,671) |
Income before income taxes | 4,694,077 | 3,066,430 |
Provision for income taxes | 1,509,274 | 1,292,589 |
Net income | $ 3,184,803 | $ 1,773,841 |
PER SHARE OF COMMON STOCK | ||
Basic earnings | $ 0.28 | $ 0.15 |
Diluted earnings | $ 0.28 | $ 0.15 |
CONSOLIDATED STATEMENTS OF CHAN
CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY - USD ($) | Total | Common Stock [Member] | Additional Paid-in Capital [Member] | Retained Earnings [Member] | Treasury Stock [Member] |
Balance at May. 30, 2014 | $ 23,512,992 | $ 9,219,195 | $ 6,497,954 | $ 18,728,462 | $ (10,932,619) |
Net income | 1,773,841 | 0 | 0 | 1,773,841 | 0 |
Cash dividends paid | (1,452,803) | 0 | 0 | (1,452,803) | 0 |
Stock compensation earned | 55,019 | 0 | 55,019 | 0 | 0 |
Treasury shares purchased | (2,204,375) | 0 | 0 | 0 | (2,204,375) |
Balance at May. 29, 2015 | 21,684,674 | 9,219,195 | 6,552,973 | 19,049,500 | (13,136,994) |
Net income | 3,184,803 | 0 | 0 | 3,184,803 | 0 |
Cash dividends paid | (1,496,160) | 0 | 0 | (1,496,160) | 0 |
Stock compensation earned | 253,011 | 0 | 253,011 | 0 | 0 |
Balance at Jun. 03, 2016 | $ 23,626,328 | $ 9,219,195 | $ 6,805,984 | $ 20,738,143 | $ (13,136,994) |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) | 12 Months Ended | |
Jun. 03, 2016 | May 29, 2015 | |
CASH FLOWS FROM OPERATING ACTIVITIES | ||
Cash received from customers | $ 136,289,283 | $ 131,980,056 |
Miscellaneous income | 97,108 | 88,918 |
Cash paid to suppliers and employees for cost of goods sold | (66,550,001) | (63,720,473) |
Cash paid for suppliers and employees for selling, general and administrative | (61,224,782) | (61,947,388) |
Income taxes | (1,140,191) | (1,839,759) |
Interest expense | (335,562) | (458,184) |
Net cash provided by operating activities | 7,135,855 | 4,103,170 |
CASH FLOWS FROM INVESTING ACTIVITIES | ||
Purchases of property, plant and equipment | (1,182,854) | (2,725,450) |
Proceeds from sale of property, plant and equipment | 56,446 | 284,806 |
Net cash used in investing activities | (1,126,408) | (2,440,644) |
CASH FLOWS FROM FINANCING ACTIVITIES | ||
Change in line of credit | (2,823,477) | 294,966 |
Debt (repayments) proceeds | (824,435) | 1,698,505 |
Principal payments under capital lease obligation | (30,970) | 0 |
Purchases of treasury shares | 0 | (2,204,375) |
Cash dividends paid | (1,496,160) | (1,452,803) |
Net cash used in financing activities | (5,175,042) | (1,663,707) |
NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS | 834,405 | (1,181) |
CASH AND CASH EQUIVALENTS AT BEGINNING OF YEAR | 1,159,449 | 1,160,630 |
CASH AND CASH EQUIVALENTS AT END OF YEAR | 1,993,854 | 1,159,449 |
Supplementary Cash Flow information: | ||
Capital Lease Obligations Incurred | 239,382 | |
RECONCILIATION OF NET INCOME TO NET CASH PROVIDED BY OPERATING ACTIVITIES | ||
Net income | 3,184,803 | 1,773,841 |
Adjustment to reconcile net income to net cash provided by operating activities: | ||
Depreciation | 3,876,111 | 3,906,766 |
Deferred income taxes | (84,598) | 307,643 |
Stock based compensation | 253,011 | 55,019 |
Gain on sale of property and equipment | (56,446) | (283,256) |
Change in receivables-net | 418,703 | 255,335 |
Change in inventories | (492,913) | 417,442 |
Change in prepaid expenses | 74,283 | (72,340) |
Change in cash surrender value of insurance | 191,830 | (27,906) |
Change in other assets - other | 55,662 | 234,548 |
Change in accounts payable | (882,590) | (572,100) |
Change in accrued expenses | 136,950 | (931,885) |
Change in salary continuation plan | 7,368 | (105,124) |
Change in income tax receivable | 453,681 | (854,813) |
Net cash provided by operating activities | $ 7,135,855 | $ 4,103,170 |
SUMMARY OF SIGNIFICANT ACCOUNTI
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 12 Months Ended |
Jun. 03, 2016 | |
Accounting Policies [Abstract] | |
Summary Of Significant Accounting Policies | NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES The accounting and reporting policies of Golden Enterprises, Inc. and subsidiary (the “Company”) conform to accounting principles generally accepted in the United States of America (“U.S. GAAP”) and to general practices within the snack foods industry. The following is a description of the more significant accounting policies: The Company manufactures and distributes a full line of snack items that are sold through its own sales organization and independent distributors to commercial establishments that sell food products primarily in the southeastern United States. The consolidated financial statements include the accounts of Golden Enterprises, Inc. (“Golden Enterprises”) and its wholly-owned subsidiary, Golden Flake Snack Foods, Inc., (“Golden Flake”). All significant inter-company transactions and balances have been eliminated. The Company ends its fiscal year on the Friday closest to the last day in May. The year ended June 3, 2016 included 53 weeks and the year ended May 29, 2015 included 52 weeks. The Company has identified one operating segment for management reporting purposes. The consolidated results of operations are the basis on which management evaluates operations and makes business decisions. The preparation of financial statements in conformity with U.S. 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 consolidated financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. The Company recognizes sales and related costs upon delivery or shipment of products to its customers. Allowances for sales returns, stale products, promotions, and discounts are recorded as reductions of revenue in the consolidated financial statements. Costs associated with the delivery or shipment of these products are recorded gross and shown as part of selling, general and administrative expenses on the consolidated statement of income. Shipping and handling costs amounted to $ 3,570,571 3,827,583 Revenue for products sold to our distributors is recognized when the distributor purchases the inventory from our warehouses or the products are shipped to their stockroom. Revenue for products sold to retail customers through company routes is recognized when the product is delivered to the customer. Revenue for products shipped directly to customers from our warehouses is recognized based on the shipping terms listed on the shipping documentation. Products shipped with terms FOB shipping point are recognized as revenue at the time the product leaves our warehouse. Products shipped with terms FOB destination are recognized as revenue based on the anticipated receipt date by the customer. We record an allowance for stales and damaged products. This allowance is estimated based on a percentage of historical sales returns and current market information. We record certain reductions to revenue for promotional allowances. There are several different types of promotional allowances such as off-invoice allowances, rebates and shelf space allowances. Shelf space allowances are capitalized and amortized over thirty-six months and recorded as a reduction to revenue. Capitalized shelf space allowances are evaluated for impairment on an ongoing basis. Capitalized shelf space included in other assets amounted to $ 917,533 973,195 The Company uses fair value measurements to record fair value adjustments to certain assets and liabilities and to determine fair value disclosures. In accordance with the “ Fair Value Measures and Disclosures Fair value guidance provides a consistent definition of fair value, which focuses on exit price in an orderly transaction (that is, not a forced liquidation or distressed sale) between market participants at the measurement date under current market conditions. If there has been a significant decrease in the volume and level of activity for the asset or liability, a change in valuation technique or the use of multiple valuation techniques may be appropriate. In such instances, determining the price at which willing market participants would transact at the measurement date under current market conditions depends on the facts and circumstances and requires the use of significant judgment. The fair value is a reasonable point within the range that is most representative of fair value under current market conditions. See Note 13 for more information on fair value. The Company considers all highly liquid investments purchased with a maturity of three months or less to be cash equivalents. 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 a reserve based on analysis of historical data and specific reserves for receivable balances that are considered at higher risk due to known facts regarding the customer. Inventories are stated at the lower of cost or market. Cost is computed on the first-in, first-out method. The Company accounts for income taxes in accordance with the FASB ASC Topic 740, Income Taxes Deferred income taxes are provided using the asset and liability method to measure tax consequences resulting from differences between financial accounting standards and applicable income tax laws. Deferred tax assets are reduced by a valuation allowance when, in the opinion of management, it is more likely than not that some portion or all of the deferred tax assets will not be realized. Deferred tax assets and liabilities are adjusted for the effects of changes in tax laws and rates on the date of enactment. Property, plant and equipment are stated at cost. Expenditures to acquire and install, and those for betterments and renewals, are capitalized. For financial reporting purposes, depreciation and amortization have been provided principally on the straight-line method over the estimated useful lives of the respective assets. Accelerated methods are used for tax purposes. Expenditures for maintenance and repairs are charged to operations as incurred. Useful life Buildings and building improvements 20 - 30 years Machinery and equipment 5 - 10 years Transportation equipment 5 - 15 years The Company maintains reserves for the self-funded portion of employee medical insurance benefits. The Company also has stop loss coverage to limit the exposure arising from these claims. The accrual for incurred but not reported (IBNR) medical insurance claims was $ 361,000 311,000 The Company is self-insured for certain casualty losses relating to automobile liability, general liability, workers’ compensation, and property losses. Automobile liability, general liability, workers’ compensation, and property losses costs are covered by letters of credit with the company’s claim administrators. As of June 3, 2016, the Company’s casualty reserve was $ 1,441,459 1,472,182 Due to the complexity of estimating the timing and amounts of insurance claims, the Company uses a third-party actuary to estimate the casualty insurance obligations on an annual basis. In determining the ultimate loss and reserve requirements, the Company uses various actuarial assumptions including compensation trends, health care cost trends, and discount rates. In 2016, we used a discount rate of 4 The Company expenses advertising costs as incurred. These costs are included in selling, general and administrative expenses. Advertising expense amounted to $ 8,319,193 7,973,958 2016 2015 Assumptions used in Black-Scholes pricing model: Expected dividend yield 2.41 % 3.20 % Risk-free interest rate 1.22 % 1.40 % Weighted average expected life 5.5 years 5.6 years Expected volatility 39 % 43.3 % The expected dividend yield is based on the projected annual dividend payment per share divided by the stock price at the date of grant. The risk free interest rate is based on rates of U.S. Treasury issues with a remaining life equal to the expected life of the option. We used the simplified method to calculate expected life using the vesting term of the option and the option expiration date, as we did not have sufficient exercise history at the time to calculate a reasonable estimate. |
RECENTLY ISSUED ACCOUNTING STAN
RECENTLY ISSUED ACCOUNTING STANDARDS | 12 Months Ended |
Jun. 03, 2016 | |
New Accounting Pronouncements and Changes in Accounting Principles [Abstract] | |
Recently Issued Accounting Standards | NOTE 2 RECENTLY ISSUED ACCOUNTING STANDARDS In May 2014, the FASB issued Accounting Standards Update (ASU) 2014-09, Revenue from Contracts with Customers, - Revenue from Contracts with Customers (Principal versus Agent Considerations) Measurement of Inventory In July 2015, the FASB issued ASU 2015-11, Simplifying the Measurement of Inventory Balance Sheet Classification of Deferred Taxes In November 2015, the FASB issued ASU 2015-17, Balance Sheet Classification of Deferred Taxes May 29, 2015 Balance Sheet Line As Filed Reclass As Adjusted Current deferred income tax assets $ 1,139,433 $ (1,139,433) $ - Long-term deferred income tax liabilities $ (3,856,793) $ 1,139,433 $ (2,717,360) Net noncurrent deferred tax liability $ (2,717,360) $ - $ (2,717,360) Leases In February 2016, the FASB issued ASU 2016-02, Leases |
RECLASSIFICATIONS
RECLASSIFICATIONS | 12 Months Ended |
Jun. 03, 2016 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Reclassifications | NOTE 3 RECLASSIFICATIONS Certain prior period consolidated financial statement amounts have been reclassified to be consistent with the presentation for the current period. These reclassifications had no effect on the reported results of operations. |
ALLOWANCE FOR DOUBTFUL ACCOUNTS
ALLOWANCE FOR DOUBTFUL ACCOUNTS | 12 Months Ended |
Jun. 03, 2016 | |
Disclosure Text Block [Abstract] | |
Allowance For Doubtful Accounts | NOTE 4 ALLOWANCE FOR DOUBTFUL ACCOUNTS 2016 2015 Beginning balance $ 70,000 $ 70,000 Additions/(Reductions) to expense 90,000 - Deductions - - Ending balance $ 160,000 $ 70,000 |
PREPAID EXPENSES
PREPAID EXPENSES | 12 Months Ended |
Jun. 03, 2016 | |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | |
Prepaid Expenses | NOTE 5 PREPAID EXPENSES 2016 2015 Truck shop supplies $ 299,532 $ 320,622 Insurance deposit 48,548 48,548 Prepaid marketplace spending 156,609 201,373 Prepaid insurance 357,431 369,864 Prepaid taxes/licenses 108,375 113,042 Prepaid dues/supplies 20,917 22,412 Other 284,506 274,340 $ 1,275,918 $ 1,350,201 |
OTHER ACCRUED EXPENSES
OTHER ACCRUED EXPENSES | 12 Months Ended |
Jun. 03, 2016 | |
Payables and Accruals [Abstract] | |
Other Accrued Expenses | NOTE 6 OTHER ACCRUED EXPENSES 2016 2015 Accrued salary and benefits $ 2,379,266 $ 2,215,338 Accrued casualty losses 1,441,459 1,472,182 Accrued IBNR 361,000 311,000 Accrued other 976,511 1,022,766 Total accrued expenses $ 5,158,236 $ 5,021,286 |
LINE OF CREDIT
LINE OF CREDIT | 12 Months Ended |
Jun. 03, 2016 | |
Debt Disclosure [Abstract] | |
Line Of Credit | NOTE 7 - LINE OF CREDIT The Company has a line-of-credit agreement with a local bank that permitted borrowing up to $ 3,000,000 : 2016 2015 Interest rate 3.50 % 3.25 % Outstanding $ - $ 2,823,477 Available 3,000,000 176,523 Total line of credit $ 3,000,000 $ 3,000,000 |
LONG-TERM LIABILITIES
LONG-TERM LIABILITIES | 12 Months Ended |
Jun. 03, 2016 | |
Debt Disclosure [Abstract] | |
Long Term Liabilities | NOTE 8 LONG-TERM LIABILITIES The Company has two notes payable with a local bank. The agreement on the note payable maturing March 10, 2021, contains a financial covenant for minimum tangible net worth of $ 16 2016 2015 Note payable maturing March 10, 2021 interest at 3.00%, principal and interest due monthly $ 4,587,642 $ 4,944,233 Note payable maturing January 31, 2020 interest at 3.30%, principal and interest due monthly 1,600,640 2,068,484 Less current portion of long-term debt (837,225) (799,204) Total long-term debt $ 5,351,057 $ 6,213,513 In July 2015, a capital lease obligation of $ 98,586 140,796 208,412 56,203 |
INCOME TAXES
INCOME TAXES | 12 Months Ended |
Jun. 03, 2016 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | NOTE 9 INCOME TAXES 2016 2015 Current: Federal $ 1,288,468 $ 797,788 State 305,404 187,158 1,593,872 984,946 Deferred: Federal (68,525) 249,191 State (16,073) 58,452 (84,598) 307,643 Total $ 1,509,274 $ 1,292,589 2016 2015 Tax on income at statutory rates $ 1,595,986 $ 1,042,483 Increase resulting from: State income taxes, less Federal income tax effect 181,584 123,525 Other - net (268,296) 126,581 Total $ 1,509,274 $ 1,292,589 The above difference is primarily due to a tax payment rectification. The tax effects of temporary differences that result in net noncurrent deferred tax liabilities are as follows: 2016 2015 Net noncurrent deferred tax liability Property and equipment $ (3,868,351) $ (3,780,271) Prepaid expenses (59,511) (76,522) Salary continuation plan 502,070 390,651 Accrued vacation 480,519 476,504 Inventory capitalization 64,399 80,430 Allowance for doubtful accounts 60,800 26,600 Other accrued expenses 187,312 165,248 Net deferred tax liability $ (2,632,762) $ (2,717,360) The Company and its subsidiary are subject to federal income tax as well as income tax of various states. The Company is no longer subject to examination for years before 2012. |
EMPLOYEE BENEFIT PLANS
EMPLOYEE BENEFIT PLANS | 12 Months Ended |
Jun. 03, 2016 | |
Compensation and Retirement Disclosure [Abstract] | |
EMPLOYEE BENFIT PLANS | NOTE 10 EMPLOYEE BENEFIT PLANS The Company has a trusteed “Qualified Profit-Sharing Plan” that was amended and restated effective September 1, 2010, known as the Golden Flake Snack Foods, Inc. 401(k) Retirement Savings Plan (the “Plan”). The Plan’s trustee and investment custodian is State Street Bank and Trust Company. Transamerica Retirement Solutions provides recordkeeping and general administrative services for the Plan. The Company’s contributions to the Plan are reviewed and approved by the Board of Directors. The Company match is 25 160,046 150,586 The Company has a non-qualified salary continuation plan with certain of its key officers whereby monthly benefits will be paid for a period of fifteen years following death or retirement at age 65. The Company is accruing the present value of the estimated future retirement payments at a 3.75 2016 2015 Accrued salary continuation plan - beginning of year $ 1,028,030 $ 1,133,154 Benefits accrued 127,368 134,876 Benefits paid (120,000) (240,000) Accrued salary continuation plan - end of year $ 1,035,398 $ 1,028,030 |
LONG-TERM INCENTIVE PLANS
LONG-TERM INCENTIVE PLANS | 12 Months Ended |
Jun. 03, 2016 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
LONG-TERM INCENTIVE PLANS | NOTE 11 LONG-TERM INCENTIVE PLANS The Company has a long-term incentive plan currently in effect under which stock option grants may be issued. This Plan (the 2014 Plan) is administered by the Stock Option Committee of the Board of Directors, which has sole discretion, subject to the terms of the Plan, to determine those employees, including executive officers, eligible to receive awards and the amount and type of such awards. The Stock Option Committee also has the authority to interpret the Plan and make all other determinations required in the administration thereof. The 2014 Plan provides for, among other things, the granting of Incentive Stock Options as defined under the Internal Revenue Code. Under the Plan, grants of incentive stock options may be made to selected officers and employees, with a term not exceeding ten years from the issue date and at a price not less than the fair market value of the Company’s stock at the date of grant. On April 9, 2015, 310,000 3.84 30,000 5.40 30,000 1 2 At June 3, 2016, 310,000 2016 2015 Weighted Weighted Average Average Exercise Exercise Shares Price Shares Price Outstanding - beginning of year 310,000 $ 3.84 - $ - Granted 30,000 5.40 310,000 3.84 Exercised - - - - Forfeited (30,000) 3.84 - - Cancelled - - - - Outstanding - end of year 310,000 $ 3.99 310,000 $ 3.84 750,000 440,000 229,167 80,833 |
NET INCOME PER SHARE
NET INCOME PER SHARE | 12 Months Ended |
Jun. 03, 2016 | |
Earnings Per Share [Abstract] | |
Net Income Per Share | NOTE 12 NET INCOME PER SHARE Basic earnings per common share are computed by dividing earnings available to 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 FASB ASC 260, “ Earnings per Share 310,000 2016 2015 Basic EPS: Net income $ 3,184,803 $ 1,773,841 Weighted average shares outstanding 11,291,757 11,552,164 Earnings per share - Basic $ 0.28 $ 0.15 Diluted EPS: Weighted average shares outstanding 11,307,497 11,552,164 Earnings per share - Diluted $ 0.28 $ 0.15 |
DISCLOSURES ABOUT FAIR VALUE OF
DISCLOSURES ABOUT FAIR VALUE OF FINANCIAL INSTRUMENTS | 12 Months Ended |
Jun. 03, 2016 | |
Fair Value Disclosures [Abstract] | |
Fair Value Disclosures | NOTE 13 DISCLOSURES ABOUT FAIR VALUE OF FINANCIAL INSTRUMENTS The FASB ASC 825 “ Financial Instruments The carrying amounts for cash and cash equivalents approximate fair value because of the short maturity, generally less than three months, of these instruments. The carrying value of the Company’s salary continuation plan and accrued liability approximates fair value because present value is used in accruing this liability. The Company does not hold or issue financial instruments for trading purposes and has no involvement with forward currency exchange contracts. The fair value of outstanding debt, including current maturities, was approximately $ 6,153,000 $ 6,967,000 |
COMMITMENTS AND CONTINGENCIES
COMMITMENTS AND CONTINGENCIES | 12 Months Ended |
Jun. 03, 2016 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies Disclosure | NOTE 14 COMMITMENTS AND CONTINGENCIES Rental expense was $ 528,434 725,947 The Company leases certain facilities and equipment classified as operating leases. The Company has also entered into agreements with suppliers for the purchase of certain ingredients and packaging materials used in the production process. These agreements are entered into in the normal course of business and consist of agreements to purchase a certain quantity over a certain period of time. These purchase commitments range in length from three to twelve months. 2017 2018 2019 2020 2021 Thereafter Purchase commitments $ 8,223,235 $ - $ - $ - $ - $ - Operating lease obligations 647,289 641,685 516,694 327,778 309,430 22,212 Debt obligations 837,225 864,402 892,464 702,484 2,891,707 - Capital lease obligations 56,203 59,526 31,009 30,830 30,844 - Total contractual obligations $ 9,763,952 $ 1,565,613 $ 1,440,167 $ 1,061,092 $ 3,231,981 $ 22,212 The Company has a letter of credit in the amount of $ 1,925,000 1,850,000 0.72 The Company is subject to routine litigation and claims incidental to its business. In the opinion of management, such routine litigation and claims should not have a material adverse effect upon the Company’s consolidated financial statements taken as a whole. |
CONCENTRATIONS OF CREDIT RISK
CONCENTRATIONS OF CREDIT RISK | 12 Months Ended |
Jun. 03, 2016 | |
Risks and Uncertainties [Abstract] | |
Concentrations Of Credit Risk | NOTE 15 - CONCENTRATIONS OF CREDIT RISK 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. Total sales attributed to our largest retail customer, through both Company owned and independent distributor routes, accounted for approximately 12 |
SUPPLEMENTARY STATEMENT OF INCO
SUPPLEMENTARY STATEMENT OF INCOME INFORMATION | 12 Months Ended |
Jun. 03, 2016 | |
Other Income and Expenses [Abstract] | |
Other Income and Other Expense Disclosure | NOTE 16 SUPPLEMENTARY STATEMENT OF INCOME INFORMATION 2016 2015 Maintenance and repairs $ 7,253,211 $ 6,569,215 Depreciation 3,876,111 3,906,766 Payroll taxes 2,214,613 2,103,563 Amounts for other taxes, rents, and research and development costs are not presented because each of such amounts is less than 1 |
SUBSEQUENT EVENTS
SUBSEQUENT EVENTS | 12 Months Ended |
Jun. 03, 2016 | |
Subsequent Events [Abstract] | |
SUBSEQUENT EVENTS | NOTE 17 SUBSEQUENT EVENTS In July of 2016, the Company amended the salary continuation plan for one key officer to remove the annual consumer price index adjustment factor effective as of the inception of the agreement. See Note 10 for further information about the salary continuation plan. Golden Enterprises, Inc. and Utz Quality Foods, Inc. of Hanover, PA (“Utz”) announced that they entered into a definitive merger agreement (“Merger Agreement”) on July 18, 2016, pursuant to which Utz will acquire the Company and Company stockholders will receive $ 12.00 On July 20, 2016, Golden Enterprises, Inc. executed Retention Bonus Agreements with Mark W. McCutcheon, Chief Executive Officer, Paul R. Bates, Executive Vice President, David A. Jones, Executive Vice President and Patty R. Townsend, Chief Financial Officer (the “Key Employees” or singularly, “Key Employee”). Upon the terms and subject to the conditions set forth in the Retention Bonus Agreements, Key Employees are paid to remain in the employment of the Company or its wholly-owned subsidiary, after the Company merges with a wholly-owned subsidiary of Utz. Payment of the retention bonus is contingent on satisfaction of certain conditions and will be made at the end of the “Retention Period” which is one year after the Merger. The amount of payment is 75 Pursuant to the Merger Agreement, the Company agreed to terminate each incentive stock option (“Stock Option”) outstanding prior to the effective time of the Merger (the “Option Cancellation Agreement”). The Option Cancellation Agreement will provide that each holder of a Stock Option shall be entitled to receive, in consideration of the cancellation of such options held by such Stock Option Holder, subject to the consummation of the Merger, a cash payment per share equal to the product of (x) the aggregate number of shares of Company Common Stock subject to such Company Stock Option, whether or not the Stock Option is currently exercisable, multiplied by (y) the excess, if any, of the Merger Consideration, as defined in the Merger Agreement, over the per share exercise price of the Company Stock Options, less any taxes required to be withheld in accordance with the Merger Agreement. Also, Golden Enterprises entered into Option Cancellation Agreements with each of the Key Employees. As a result of entering into the Option Cancellation Agreements, at the time of the Merger each Key Employee will be entitled to receive the amount determined by the formula set forth above. The Company will recognize the remaining incentive compensation expense at the time of the Merger. See Note 11 for further information about the incentive plan. |
SUMMARY OF SIGNIFICANT ACCOUN24
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies) | 12 Months Ended |
Jun. 03, 2016 | |
Accounting Policies [Abstract] | |
Nature of the Business | Nature of the Business The Company manufactures and distributes a full line of snack items that are sold through its own sales organization and independent distributors to commercial establishments that sell food products primarily in the southeastern United States. |
Consolidation | Consolidation The consolidated financial statements include the accounts of Golden Enterprises, Inc. (“Golden Enterprises”) and its wholly-owned subsidiary, Golden Flake Snack Foods, Inc., (“Golden Flake”). All significant inter-company transactions and balances have been eliminated. |
Fiscal Year | Fiscal Year The Company ends its fiscal year on the Friday closest to the last day in May. The year ended June 3, 2016 included 53 weeks and the year ended May 29, 2015 included 52 weeks. |
Segment Information | Segment Information The Company has identified one operating segment for management reporting purposes. The consolidated results of operations are the basis on which management evaluates operations and makes business decisions. |
Use of Estimates | Use of Estimates The preparation of financial statements in conformity with U.S. 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 consolidated financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. |
Revenue Recognition | The Company recognizes sales and related costs upon delivery or shipment of products to its customers. Allowances for sales returns, stale products, promotions, and discounts are recorded as reductions of revenue in the consolidated financial statements. Costs associated with the delivery or shipment of these products are recorded gross and shown as part of selling, general and administrative expenses on the consolidated statement of income. Shipping and handling costs amounted to $ 3,570,571 3,827,583 Revenue for products sold to our distributors is recognized when the distributor purchases the inventory from our warehouses or the products are shipped to their stockroom. Revenue for products sold to retail customers through company routes is recognized when the product is delivered to the customer. Revenue for products shipped directly to customers from our warehouses is recognized based on the shipping terms listed on the shipping documentation. Products shipped with terms FOB shipping point are recognized as revenue at the time the product leaves our warehouse. Products shipped with terms FOB destination are recognized as revenue based on the anticipated receipt date by the customer. We record an allowance for stales and damaged products. This allowance is estimated based on a percentage of historical sales returns and current market information. We record certain reductions to revenue for promotional allowances. There are several different types of promotional allowances such as off-invoice allowances, rebates and shelf space allowances. Shelf space allowances are capitalized and amortized over thirty-six months and recorded as a reduction to revenue. Capitalized shelf space allowances are evaluated for impairment on an ongoing basis. Capitalized shelf space included in other assets amounted to $ 917,533 973,195 |
Fair Value of Financial Instruments | Fair Value of Financial Instruments The Company uses fair value measurements to record fair value adjustments to certain assets and liabilities and to determine fair value disclosures. In accordance with the “ Fair Value Measures and Disclosures Fair value guidance provides a consistent definition of fair value, which focuses on exit price in an orderly transaction (that is, not a forced liquidation or distressed sale) between market participants at the measurement date under current market conditions. If there has been a significant decrease in the volume and level of activity for the asset or liability, a change in valuation technique or the use of multiple valuation techniques may be appropriate. In such instances, determining the price at which willing market participants would transact at the measurement date under current market conditions depends on the facts and circumstances and requires the use of significant judgment. The fair value is a reasonable point within the range that is most representative of fair value under current market conditions. See Note 13 for more information on fair value. |
Cash and Cash Equivalents | Cash and Cash Equivalents The Company considers all highly liquid investments purchased with a maturity of three months or less to be cash equivalents. |
Accounts Receivables | Accounts Receivables 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 a reserve based on analysis of historical data and specific reserves for receivable balances that are considered at higher risk due to known facts regarding the customer. |
Inventories | Inventories Inventories are stated at the lower of cost or market. Cost is computed on the first-in, first-out method. |
Income Taxs | Income Taxes The Company accounts for income taxes in accordance with the FASB ASC Topic 740, Income Taxes Deferred income taxes are provided using the asset and liability method to measure tax consequences resulting from differences between financial accounting standards and applicable income tax laws. Deferred tax assets are reduced by a valuation allowance when, in the opinion of management, it is more likely than not that some portion or all of the deferred tax assets will not be realized. Deferred tax assets and liabilities are adjusted for the effects of changes in tax laws and rates on the date of enactment. |
Property, Plant and Equipment | Property, Plant and Equipment Property, plant and equipment are stated at cost. Expenditures to acquire and install, and those for betterments and renewals, are capitalized. For financial reporting purposes, depreciation and amortization have been provided principally on the straight-line method over the estimated useful lives of the respective assets. Accelerated methods are used for tax purposes. Expenditures for maintenance and repairs are charged to operations as incurred. Useful life Buildings and building improvements 20 - 30 years Machinery and equipment 5 - 10 years Transportation equipment 5 - 15 years |
Self-Insurance | Self-Insurance The Company maintains reserves for the self-funded portion of employee medical insurance benefits. The Company also has stop loss coverage to limit the exposure arising from these claims. The accrual for incurred but not reported (IBNR) medical insurance claims was $ 361,000 311,000 The Company is self-insured for certain casualty losses relating to automobile liability, general liability, workers’ compensation, and property losses. Automobile liability, general liability, workers’ compensation, and property losses costs are covered by letters of credit with the company’s claim administrators. As of June 3, 2016, the Company’s casualty reserve was $ 1,441,459 1,472,182 Due to the complexity of estimating the timing and amounts of insurance claims, the Company uses a third-party actuary to estimate the casualty insurance obligations on an annual basis. In determining the ultimate loss and reserve requirements, the Company uses various actuarial assumptions including compensation trends, health care cost trends, and discount rates. In 2016, we used a discount rate of 4 |
Advertising | Advertising The Company expenses advertising costs as incurred. These costs are included in selling, general and administrative expenses. Advertising expense amounted to $ 8,319,193 7,973,958 |
Stock Options | 2016 2015 Assumptions used in Black-Scholes pricing model: Expected dividend yield 2.41 % 3.20 % Risk-free interest rate 1.22 % 1.40 % Weighted average expected life 5.5 years 5.6 years Expected volatility 39 % 43.3 % The expected dividend yield is based on the projected annual dividend payment per share divided by the stock price at the date of grant. The risk free interest rate is based on rates of U.S. Treasury issues with a remaining life equal to the expected life of the option. We used the simplified method to calculate expected life using the vesting term of the option and the option expiration date, as we did not have sufficient exercise history at the time to calculate a reasonable estimate. |
SUMMARY OF SIGNIFICANT ACCOUN25
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Tables) | 12 Months Ended |
Jun. 03, 2016 | |
Accounting Policies [Abstract] | |
Property, Plant and Equipment | The following table summarizes the majority of our estimated useful lives of long-term depreciable assets: Useful life Buildings and building improvements 20 - 30 years Machinery and equipment 5 - 10 years Transportation equipment 5 - 15 years |
Schedule of Share-based Payment Award, Stock Options, Valuation Assumptions | The following assumptions were used to determine the weighted average fair value of options granted during 2016 and 2015. 2016 2015 Assumptions used in Black-Scholes pricing model: Expected dividend yield 2.41 % 3.20 % Risk-free interest rate 1.22 % 1.40 % Weighted average expected life 5.5 years 5.6 years Expected volatility 39 % 43.3 % |
RECENTLY ISSUED ACCOUNTING ST26
RECENTLY ISSUED ACCOUNTING STANDARDS (Tables) | 12 Months Ended |
Jun. 03, 2016 | |
Accounting Changes and Error Corrections [Abstract] | |
Recently Issued Accounting Standards | The following table summarizes the adjustments made to conform prior period classifications to the new guidance: May 29, 2015 Balance Sheet Line As Filed Reclass As Adjusted Current deferred income tax assets $ 1,139,433 $ (1,139,433) $ - Long-term deferred income tax liabilities $ (3,856,793) $ 1,139,433 $ (2,717,360) Net noncurrent deferred tax liability $ (2,717,360) $ - $ (2,717,360) |
ALLOWANCE FOR DOUBTFUL ACCOUN27
ALLOWANCE FOR DOUBTFUL ACCOUNTS (Tables) | 12 Months Ended |
Jun. 03, 2016 | |
Disclosure Text Block [Abstract] | |
Allowance For Doubtful Accounts | The following table summarizes the allowance for doubtful accounts for the years ended June 3, 2016 and May 29, 2015, respectively: 2016 2015 Beginning balance $ 70,000 $ 70,000 Additions/(Reductions) to expense 90,000 - Deductions - - Ending balance $ 160,000 $ 70,000 |
PREPAID EXPENSES (Tables)
PREPAID EXPENSES (Tables) | 12 Months Ended |
Jun. 03, 2016 | |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | |
Prepaid Expenses | At June 3, 2016 and May 29, 2015, prepaid expenses consist of the following: 2016 2015 Truck shop supplies $ 299,532 $ 320,622 Insurance deposit 48,548 48,548 Prepaid marketplace spending 156,609 201,373 Prepaid insurance 357,431 369,864 Prepaid taxes/licenses 108,375 113,042 Prepaid dues/supplies 20,917 22,412 Other 284,506 274,340 $ 1,275,918 $ 1,350,201 |
OTHER ACCRUED EXPENSES (Tables)
OTHER ACCRUED EXPENSES (Tables) | 12 Months Ended |
Jun. 03, 2016 | |
Payables and Accruals [Abstract] | |
Other Accrued Expenses | The following table summarizes other accrued expenses as of June 3, 2016 and May 29, 2015: 2016 2015 Accrued salary and benefits $ 2,379,266 $ 2,215,338 Accrued casualty losses 1,441,459 1,472,182 Accrued IBNR 361,000 311,000 Accrued other 976,511 1,022,766 Total accrued expenses $ 5,158,236 $ 5,021,286 |
LINE OF CREDIT (Tables)
LINE OF CREDIT (Tables) | 12 Months Ended |
Jun. 03, 2016 | |
Debt Disclosure [Abstract] | |
Line Of Credit | The following table summarizes the line of credit as of June 3, 2016 and May 29, 2015 : 2016 2015 Interest rate 3.50 % 3.25 % Outstanding $ - $ 2,823,477 Available 3,000,000 176,523 Total line of credit $ 3,000,000 $ 3,000,000 |
LONG-TERM LIABILITIES (Tables)
LONG-TERM LIABILITIES (Tables) | 12 Months Ended |
Jun. 03, 2016 | |
Debt Disclosure [Abstract] | |
Long Term Liabilities | Debt outstanding as of June 3, 2016 and May 29, 2015, consisted of the following: 2016 2015 Note payable maturing March 10, 2021 interest at 3.00%, principal and interest due monthly $ 4,587,642 $ 4,944,233 Note payable maturing January 31, 2020 interest at 3.30%, principal and interest due monthly 1,600,640 2,068,484 Less current portion of long-term debt (837,225) (799,204) Total long-term debt $ 5,351,057 $ 6,213,513 |
INCOME TAXES (Tables)
INCOME TAXES (Tables) | 12 Months Ended |
Jun. 03, 2016 | |
Income Tax Disclosure [Abstract] | |
Schedule of Components of Income Tax Expense (Benefit) | At June 3, 2016 and May 29, 2015 the provision for income taxes consists of the following: 2016 2015 Current: Federal $ 1,288,468 $ 797,788 State 305,404 187,158 1,593,872 984,946 Deferred: Federal (68,525) 249,191 State (16,073) 58,452 (84,598) 307,643 Total $ 1,509,274 $ 1,292,589 |
Schedule of Deferred Tax Assets and Liabilities | The effective tax rate for continuing operations differs from the expected tax using statutory rates. A reconciliation between the expected tax and actual tax follows: 2016 2015 Tax on income at statutory rates $ 1,595,986 $ 1,042,483 Increase resulting from: State income taxes, less Federal income tax effect 181,584 123,525 Other - net (268,296) 126,581 Total $ 1,509,274 $ 1,292,589 |
Schedule of Effective Income Tax Rate Reconciliation | The above difference is primarily due to a tax payment rectification. The tax effects of temporary differences that result in net noncurrent deferred tax liabilities are as follows: 2016 2015 Net noncurrent deferred tax liability Property and equipment $ (3,868,351) $ (3,780,271) Prepaid expenses (59,511) (76,522) Salary continuation plan 502,070 390,651 Accrued vacation 480,519 476,504 Inventory capitalization 64,399 80,430 Allowance for doubtful accounts 60,800 26,600 Other accrued expenses 187,312 165,248 Net deferred tax liability $ (2,632,762) $ (2,717,360) |
EMPLOYEE BENEFIT PLANS (Tables)
EMPLOYEE BENEFIT PLANS (Tables) | 12 Months Ended |
Jun. 03, 2016 | |
Compensation and Retirement Disclosure [Abstract] | |
Schedule of Changes in Projected Benefit Obligations | The change in the liability for the salary continuation plan is as follows: 2016 2015 Accrued salary continuation plan - beginning of year $ 1,028,030 $ 1,133,154 Benefits accrued 127,368 134,876 Benefits paid (120,000) (240,000) Accrued salary continuation plan - end of year $ 1,035,398 $ 1,028,030 |
LONG-TERM INCENTIVE PLANS (Tabl
LONG-TERM INCENTIVE PLANS (Tables) | 12 Months Ended |
Jun. 03, 2016 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Schedule of Share-based Compensation, Stock Options, Activity | The following is a summary of the transactions for the years ended June 3, 2016 and May 29, 2015: 2016 2015 Weighted Weighted Average Average Exercise Exercise Shares Price Shares Price Outstanding - beginning of year 310,000 $ 3.84 - $ - Granted 30,000 5.40 310,000 3.84 Exercised - - - - Forfeited (30,000) 3.84 - - Cancelled - - - - Outstanding - end of year 310,000 $ 3.99 310,000 $ 3.84 |
NET INCOME PER SHARE (Tables)
NET INCOME PER SHARE (Tables) | 12 Months Ended |
Jun. 03, 2016 | |
Earnings Per Share [Abstract] | |
Net Income Per Share | The following reconciles the information used to compute basic and diluted earnings per share for the years ended June 3, 2016 and May 29, 2015: 2016 2015 Basic EPS: Net income $ 3,184,803 $ 1,773,841 Weighted average shares outstanding 11,291,757 11,552,164 Earnings per share - Basic $ 0.28 $ 0.15 Diluted EPS: Weighted average shares outstanding 11,307,497 11,552,164 Earnings per share - Diluted $ 0.28 $ 0.15 |
COMMITMENTS AND CONTINGENCIES (
COMMITMENTS AND CONTINGENCIES (Tables) | 12 Months Ended |
Jun. 03, 2016 | |
Commitments and Contingencies Disclosure [Abstract] | |
Schedule of Future Minimum Rental Payments for Operating Leases | Future purchase commitments and operating lease obligations at June 3, 2016 were as follows: 2017 2018 2019 2020 2021 Thereafter Purchase commitments $ 8,223,235 $ - $ - $ - $ - $ - Operating lease obligations 647,289 641,685 516,694 327,778 309,430 22,212 Debt obligations 837,225 864,402 892,464 702,484 2,891,707 - Capital lease obligations 56,203 59,526 31,009 30,830 30,844 - Total contractual obligations $ 9,763,952 $ 1,565,613 $ 1,440,167 $ 1,061,092 $ 3,231,981 $ 22,212 |
SUPPLEMENTARY STATEMENT OF IN37
SUPPLEMENTARY STATEMENT OF INCOME INFORMATION (Tables) | 12 Months Ended |
Jun. 03, 2016 | |
Other Income and Expenses [Abstract] | |
Schedule of Other Operating Cost and Expense, by Component | The following tabulation gives certain supplementary statement of income information for the years ended June 3, 2016 and May 29, 2015: 2016 2015 Maintenance and repairs $ 7,253,211 $ 6,569,215 Depreciation 3,876,111 3,906,766 Payroll taxes 2,214,613 2,103,563 |
SUMMARY OF SIGNIFICANT ACCOUN38
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details) | 12 Months Ended |
Jun. 03, 2016 | |
Maximum [Member] | Building and Building Improvements [Member] | |
Property, Plant and Equipment [Line Items] | |
Property, Plant and Equipment, Useful Life | 30 years |
Maximum [Member] | Machinery and Equipment [Member] | |
Property, Plant and Equipment [Line Items] | |
Property, Plant and Equipment, Useful Life | 10 years |
Maximum [Member] | Transportation Equipment [Member] | |
Property, Plant and Equipment [Line Items] | |
Property, Plant and Equipment, Useful Life | 15 years |
Minimum [Member] | Building and Building Improvements [Member] | |
Property, Plant and Equipment [Line Items] | |
Property, Plant and Equipment, Useful Life | 20 years |
Minimum [Member] | Machinery and Equipment [Member] | |
Property, Plant and Equipment [Line Items] | |
Property, Plant and Equipment, Useful Life | 5 years |
Minimum [Member] | Transportation Equipment [Member] | |
Property, Plant and Equipment [Line Items] | |
Property, Plant and Equipment, Useful Life | 5 years |
SUMMARY OF SIGNIFICANT ACCOUN39
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details 1) | 12 Months Ended | |
Jun. 03, 2016 | May 29, 2015 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Expected dividend yield | 2.41% | 3.20% |
Risk-free interest rate | 1.22% | 1.40% |
Weighted average expected life | 5 years 6 months | 5 years 7 months 6 days |
Expected volatility | 39.00% | 43.30% |
SUMMARY OF SIGNIFICANT ACCOUN40
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details Textual) - USD ($) | 12 Months Ended | |
Jun. 03, 2016 | May 29, 2015 | |
Property, Plant and Equipment [Line Items] | ||
Shipping, Handling and Transportation Costs | $ 3,570,571 | $ 3,827,583 |
Other Assets, Noncurrent | 917,533 | 973,195 |
Short Duration Insurance Contract Incurred But Not Reported IBNR Claims Liability Net | $ 361,000 | $ 311,000 |
Short-Duration Contracts, Discounted Liabilities, Discount Rate | 4.00% | 4.00% |
Advertising Expense | $ 8,319,193 | $ 7,973,958 |
Self Insurance Reserve | $ 1,441,459 | $ 1,472,182 |
RECENTLY ISSUED ACCOUNTING ST41
RECENTLY ISSUED ACCOUNTING STANDARDS (Details) - USD ($) | Jun. 03, 2016 | May 29, 2015 |
Deferred Income Tax [Line Items] | ||
Current deferred income tax assets | $ 0 | |
Long-term deferred income tax liabilities | $ 2,632,762 | 2,717,360 |
Net noncurrent deferred tax liability | (2,717,360) | |
Scenario, Previously Reported [Member] | ||
Deferred Income Tax [Line Items] | ||
Current deferred income tax assets | 1,139,433 | |
Long-term deferred income tax liabilities | (3,856,793) | |
Net noncurrent deferred tax liability | (2,717,360) | |
Restatement Adjustment [Member] | ||
Deferred Income Tax [Line Items] | ||
Current deferred income tax assets | (1,139,433) | |
Long-term deferred income tax liabilities | 1,139,433 | |
Net noncurrent deferred tax liability | $ 0 |
ALLOWANCE FOR DOUBTFUL ACCOUN42
ALLOWANCE FOR DOUBTFUL ACCOUNTS (Details) - USD ($) | 12 Months Ended | |
Jun. 03, 2016 | May 29, 2015 | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Beginning balance | $ 70,000 | $ 70,000 |
Additions/(Reductions) to expense | 90,000 | 0 |
Deductions | 0 | 0 |
Ending balance | $ 160,000 | $ 70,000 |
PREPAID EXPENSES (Details)
PREPAID EXPENSES (Details) - USD ($) | Jun. 03, 2016 | May 29, 2015 |
Truck shop supplies | $ 299,532 | $ 320,622 |
Insurance deposit | 48,548 | 48,548 |
Prepaid marketplace spending | 156,609 | 201,373 |
Prepaid insurance | 357,431 | 369,864 |
Prepaid taxes/licenses | 108,375 | 113,042 |
Prepaid dues/supplies | 20,917 | 22,412 |
Other | 284,506 | 274,340 |
Total prepaid expenses | $ 1,275,918 | $ 1,350,201 |
OTHER ACCRUED EXPENSES (Details
OTHER ACCRUED EXPENSES (Details) - USD ($) | Jun. 03, 2016 | May 29, 2015 |
Accrued salary and benefits | $ 2,379,266 | $ 2,215,338 |
Accrued casualty losses | 1,441,459 | 1,472,182 |
Accrued IBNR | 361,000 | 311,000 |
Accrued other | 976,511 | 1,022,766 |
Total accrued expenses | $ 5,158,236 | $ 5,021,286 |
LINE OF CREDIT (Details)
LINE OF CREDIT (Details) - USD ($) | Jun. 03, 2016 | May 29, 2015 |
Interest rate | 3.50% | 3.25% |
Outstanding | $ 0 | $ 2,823,477 |
Available | 3,000,000 | 176,523 |
Total Line of credit | $ 3,000,000 | $ 3,000,000 |
LINE OF CREDIT (Details Textual
LINE OF CREDIT (Details Textual) - USD ($) | Jun. 03, 2016 | May 29, 2015 |
Line of Credit Facility, Maximum Borrowing Capacity | $ 3,000,000 | $ 3,000,000 |
LONG-TERM LIABILITIES (Details)
LONG-TERM LIABILITIES (Details) - USD ($) | Jun. 03, 2016 | May 29, 2015 |
Less current portion of long-term debt | $ (837,225) | $ (799,204) |
Total long-term debt | 5,351,057 | 6,213,513 |
Notes Payable One [Member] | ||
Debt Instrument, Face Amount | 4,587,642 | 4,944,233 |
Notes Payable Two [Member] | ||
Debt Instrument, Face Amount | $ 1,600,640 | $ 2,068,484 |
LONG-TERM LIABILITIES (Details
LONG-TERM LIABILITIES (Details Textual) - USD ($) | 1 Months Ended | 12 Months Ended | ||
Mar. 31, 2016 | Jul. 31, 2015 | Jun. 03, 2016 | May 29, 2015 | |
Debt Instrument [Line Items] | ||||
Capital Lease Obligations, Total | $ 140,796 | $ 98,586 | $ 208,412 | |
Minimum Net Worth Required for Compliance | 16,000,000 | |||
Lessee Leasing Arrangements, Capital Leases, Term of Contract | 60 months | 36 months | ||
Capital Lease Obligations, Current | $ 56,203 | $ 0 | ||
Notes Payable One [Member] | ||||
Debt Instrument [Line Items] | ||||
Debt Instrument, Interest Rate, Stated Percentage | 3.00% | |||
Debt Instrument, Maturity Date | Mar. 10, 2021 | |||
Notes Payable Two [Member] | ||||
Debt Instrument [Line Items] | ||||
Debt Instrument, Interest Rate, Stated Percentage | 3.30% | |||
Debt Instrument, Maturity Date | Jan. 31, 2020 |
INCOME TAXES (Details)
INCOME TAXES (Details) - USD ($) | 12 Months Ended | |
Jun. 03, 2016 | May 29, 2015 | |
Current: | ||
Federal | $ 1,288,468 | $ 797,788 |
State | 305,404 | 187,158 |
Total current | 1,593,872 | 984,946 |
Deferred: | ||
Federal | (68,525) | 249,191 |
State | (16,073) | 58,452 |
Total deferred | (84,598) | 307,643 |
Total | $ 1,509,274 | $ 1,292,589 |
INCOME TAXES (Detail 1)
INCOME TAXES (Detail 1) - USD ($) | 12 Months Ended | |
Jun. 03, 2016 | May 29, 2015 | |
Tax on income at statutory rates | $ 1,595,986 | $ 1,042,483 |
Increase resulting from: | ||
State income taxes, less Federal income tax effect | 181,584 | 123,525 |
Other - net | (268,296) | 126,581 |
Total | $ 1,509,274 | $ 1,292,589 |
INCOME TAXES (Detail 2)
INCOME TAXES (Detail 2) - USD ($) | Jun. 03, 2016 | May 29, 2015 |
Net noncurrent deferred tax liability | ||
Property and equipment | $ (3,868,351) | $ (3,780,271) |
Prepaid expenses | (59,511) | (76,522) |
Salary continuation plan | 502,070 | 390,651 |
Accrued vacation | 480,519 | 476,504 |
Inventory capitalization | 64,399 | 80,430 |
Allowance for doubtful accounts | 60,800 | 26,600 |
Other accrued expenses | 187,312 | 165,248 |
Net deferred tax liability | $ (2,632,762) | $ (2,717,360) |
EMPLOYEE BENEFIT PLANS (Details
EMPLOYEE BENEFIT PLANS (Details) - USD ($) | 12 Months Ended | |
Jun. 03, 2016 | May 29, 2015 | |
Accrued salary continuation plan - beginning of year | $ 1,028,030 | $ 1,133,154 |
Benefits accrued | 127,368 | 134,876 |
Benefits paid | (120,000) | (240,000) |
Accrued salary continuation plan - end of year | $ 1,035,398 | $ 1,028,030 |
EMPLOYEE BENEFIT PLANS (Detai53
EMPLOYEE BENEFIT PLANS (Details Textual) - USD ($) | 12 Months Ended | |
Jun. 03, 2016 | May 29, 2015 | |
Defined Contribution Plan, Employer Matching Contribution, Percent of Match | 25.00% | 25.00% |
Defined Benefit Plan, Contributions by Employer | $ 160,046 | $ 150,586 |
Salary Continuation Plan Number Of Periods In Effect Following Retirement | 15 years | |
Defined Benefit Plan, Assumptions Used Calculating Benefit Obligation, Discount Rate | 3.75% | |
Cash Surrender Value of Life Insurance | $ 438,429 | $ 630,259 |
LONG-TERM INCENTIVE PLANS (Deta
LONG-TERM INCENTIVE PLANS (Details) - $ / shares | Apr. 07, 2016 | Apr. 09, 2015 | Jun. 03, 2016 | May 29, 2015 |
Outstanding - beginning of year | 310,000 | 0 | ||
Granted | 30,000 | 310,000 | 30,000 | 310,000 |
Exercised | 0 | 0 | ||
Forfeited | (30,000) | 0 | ||
Cancelled | 0 | 0 | ||
Outstanding - end of year | 310,000 | 310,000 | ||
Outstanding - beginning of year | $ 3.84 | $ 0 | ||
Weighted Average Exercise Price - Granted | $ 5.40 | $ 3.84 | 5.40 | 3.84 |
Weighted Average Exercise Price - Exercised | 0 | 0 | ||
Weighted Average Exercise Price - Forfeited | 3.84 | 0 | ||
Weighted Average Exercise Price - Cancelled | 0 | 0 | ||
Outstanding - end of year | $ 3.99 | $ 3.84 |
LONG-TERM INCENTIVE PLANS (De55
LONG-TERM INCENTIVE PLANS (Details Textual) - USD ($) | Apr. 07, 2016 | Apr. 09, 2015 | Jun. 03, 2016 | May 29, 2015 | Apr. 30, 2017 | May 30, 2014 |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Gross | 30,000 | 310,000 | 30,000 | 310,000 | ||
Share-based Compensation Arrangements by Share-based Payment Award, Options, Grants in Period, Weighted Average Exercise Price | $ 5.40 | $ 3.84 | $ 5.40 | $ 3.84 | ||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Forfeitures in Period | (30,000) | 0 | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Number, Beginning Balance | 310,000 | 310,000 | 0 | |||
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Authorized | 750,000 | |||||
Common Stock, Capital Shares Reserved for Future Issuance | 440,000 | |||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Vested and Expected to Vest, Exercisable, Number | 229,167 | |||||
Share-based Compensation, Total | $ 253,011 | $ 55,019 | ||||
Employee Service Share-based Compensation, Nonvested Awards, Compensation Not yet Recognized, Stock Options | $ 63,570 | $ 304,581 | ||||
Scenario, Forecast [Member] | ||||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Vested and Expected to Vest, Exercisable, Number | 80,833 | |||||
Minimum [Member] | ||||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Vested and Expected to Vest, Outstanding, Weighted Average Remaining Contractual Term | 1 year | |||||
Maximum [Member] | ||||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Vested and Expected to Vest, Outstanding, Weighted Average Remaining Contractual Term | 2 years |
NET INCOME PER SHARE (Details)
NET INCOME PER SHARE (Details) - USD ($) | 12 Months Ended | |
Jun. 03, 2016 | May 29, 2015 | |
Basic EPS: | ||
Net income | $ 3,184,803 | $ 1,773,841 |
Weighted average shares outstanding | 11,291,757 | 11,552,164 |
Earnings per share - Basic | $ 0.28 | $ 0.15 |
Diluted EPS: | ||
Weighted average shares outstanding | 11,307,497 | 11,552,164 |
Earnings per share - Diluted | $ 0.28 | $ 0.15 |
NET INCOME PER SHARE (Details T
NET INCOME PER SHARE (Details Textual) | 12 Months Ended |
May 29, 2015shares | |
Incremental Common Shares Attributable to Dilutive Effect of Share-based Payment Arrangements | 310,000 |
DISCLOSURES ABOUT FAIR VALUE 58
DISCLOSURES ABOUT FAIR VALUE OF FINANCIAL INSTRUMENTS (Details Textual) - USD ($) | Jun. 03, 2016 | May 29, 2015 |
Long-term Debt, Fair Value | $ 6,153,000 | $ 6,967,000 |
COMMITMENTS AND CONTINGENCIES59
COMMITMENTS AND CONTINGENCIES (Details) | Jun. 03, 2016USD ($) |
Purchase commitments 2017 | $ 8,223,235 |
Purchase commitments 2018 | 0 |
Purchase commitments 2019 | 0 |
Purchase commitments 2020 | 0 |
Purchase commitments 2021 | 0 |
Purchase commitments Thereafter | 0 |
Operating lease obligations 2017 | 647,289 |
Operating lease obligations 2018 | 641,685 |
Operating lease obligations 2019 | 516,694 |
Operating lease obligations 2020 | 327,778 |
Operating lease obligations 2021 | 309,430 |
Operating lease obligations Thereafter | 22,212 |
Debt obligations 2017 | 837,225 |
Debt obligations 2018 | 864,402 |
Debt obligations 2019 | 892,464 |
Debt obligations 2020 | 702,484 |
Debt obligations 2021 | 2,891,707 |
Debt obligations Thereafter | 0 |
Capital lease obligations 2017 | 56,203 |
Capital lease obligations 2018 | 59,526 |
Capital lease obligations 2019 | 31,009 |
Capital lease obligations 2020 | 30,830 |
Capital lease obligations 2021 | 30,844 |
Capital lease obligations Thereafter | 0 |
Total contractual obligations 2017 | 9,763,952 |
Total contractual obligations 2018 | 1,565,613 |
Total contractual obligations 2019 | 1,440,167 |
Total contractual obligations 2020 | 1,061,092 |
Total contractual obligations 2021 | 3,231,981 |
Total contractual obligations Thereafter | $ 22,212 |
COMMITMENTS AND CONTINGENCIES60
COMMITMENTS AND CONTINGENCIES (Details Textual) - USD ($) | 12 Months Ended | |
Jun. 03, 2016 | May 29, 2015 | |
Rent expense | $ 528,434 | $ 725,947 |
Letters of Credit Outstanding, Amount | $ 1,925,000 | $ 1,850,000 |
Line of Credit Facility, Commitment Fee Percentage | 0.72% |
CONCENTRATIONS OF CREDIT RISK (
CONCENTRATIONS OF CREDIT RISK (Details Textual) | 12 Months Ended | |
Jun. 03, 2016 | May 29, 2015 | |
Customer Concentration Risk [Member] | Sales Revenue, Net [Member] | ||
Concentration Risk, Percentage | 12.00% | 11.00% |
SUPPLEMENTARY STATEMENT OF IN62
SUPPLEMENTARY STATEMENT OF INCOME INFORMATION (Details) - USD ($) | 12 Months Ended | |
Jun. 03, 2016 | May 29, 2015 | |
Maintenance and repairs | $ 7,253,211 | $ 6,569,215 |
Depreciation | 3,876,111 | 3,906,766 |
Payroll taxes | $ 2,214,613 | $ 2,103,563 |
SUPPLEMENTARY STATEMENT OF IN63
SUPPLEMENTARY STATEMENT OF INCOME INFORMATION (Details Textual) | 12 Months Ended |
Jun. 03, 2016 | |
Taxes Rents And Research And Development Costs As Percent Of Revenue Required For Separate Disclosure | 1.00% |
SUBSEQUENT EVENTS (Details Text
SUBSEQUENT EVENTS (Details Textual) - Subsequent Event [Member] - $ / shares | 1 Months Ended | |
Jul. 20, 2016 | Jul. 18, 2016 | |
Employee Retention Period | 1 year | |
Retention Bonus [Member] | ||
Deferred Compensation Arrangement with Individual, Cash Awards Granted, Percentage | 75.00% | |
Utz Quality Foods, Inc [Member] | ||
Business Acquisition, Share Price | $ 12 |