Document_and_Entity_Informatio
Document and Entity Information | 6 Months Ended | |
Nov. 28, 2014 | Dec. 31, 2014 | |
Document And Entity Information [Abstract] | ||
Document Type | 10-Q | |
Amendment Flag | FALSE | |
Document Period End Date | 28-Nov-14 | |
Document Fiscal Year Focus | 2015 | |
Document Fiscal Period Focus | Q2 | |
Trading Symbol | GLDC | |
Entity Registrant Name | GOLDEN ENTERPRISES INC | |
Entity Central Index Key | 42228 | |
Current Fiscal Year End Date | -24 | |
Entity Filer Category | Smaller Reporting Company | |
Entity Common Stock, Shares Outstanding | 11,732,632 |
Condensed_Consolidated_Balance
Condensed Consolidated Balance Sheets (USD $) | Nov. 28, 2014 | 30-May-14 |
CURRENT ASSETS | ||
Cash and cash equivalents | $2,183,093 | $1,160,630 |
Receivables, net | 10,688,466 | 11,341,024 |
Inventories: | ||
Raw materials and supplies | 1,786,801 | 2,123,313 |
Finished goods | 3,563,072 | 3,536,326 |
Inventories, net | 5,349,873 | 5,659,639 |
Prepaid expenses | 1,490,903 | 1,277,861 |
Deferred income taxes | 559,672 | 559,672 |
Total current assets | 20,272,007 | 19,998,826 |
Property, plant and equipment, net | 24,408,218 | 25,671,344 |
Other assets | 1,724,834 | 1,810,096 |
Total | 46,405,059 | 47,480,266 |
CURRENT LIABILITIES | ||
Checks outstanding in excess of bank balances | 1,928,533 | 1,971,076 |
Accounts payable | 4,164,279 | 3,719,102 |
Accrued income taxes | 115,929 | 378,659 |
Current portion of long-term debt | 376,649 | 369,979 |
Other accrued expenses | 4,903,601 | 5,953,171 |
Salary continuation plan | 160,624 | 212,970 |
Line of credit outstanding | 2,529,592 | 2,528,511 |
Total current liabilities | 14,179,207 | 15,133,468 |
LONG-TERM LIABILITIES | ||
Notes payable - bank, non-current | 4,754,474 | 4,944,233 |
Salary continuation plan | 914,334 | 920,184 |
Deferred income taxes | 2,969,389 | 2,969,389 |
Total long-term liabilities | 8,638,197 | 8,833,806 |
STOCKHOLDER'S 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 | 6,497,954 | 6,497,954 |
Retained earnings | 18,803,125 | 18,728,462 |
Stockholder's equity before treasury stock | 34,520,274 | 34,445,611 |
Less: Cost of common shares in treasury (2,096,161 shares at November 28, 2014 and May 30, 2014) | -10,932,619 | -10,932,619 |
Total stockholder's equity | 23,587,655 | 23,512,992 |
Total | $46,405,059 | $47,480,266 |
Condensed_Consolidated_Balance1
Condensed Consolidated Balance Sheets (Parenthetical) (USD $) | Nov. 28, 2014 | 30-May-14 |
Statement of Financial Position [Abstract] | ||
Common stock, par value | $0.67 | $0.67 |
Common stock, shares authorized | 35,000,000 | 35,000,000 |
Common stock, shares issued | 13,828,793 | 13,828,793 |
Treasury stock, shares | 2,096,161 | 2,096,161 |
Condensed_Consolidated_Stateme
Condensed Consolidated Statements of Income (USD $) | 3 Months Ended | 6 Months Ended | ||
Nov. 28, 2014 | Nov. 29, 2013 | Nov. 28, 2014 | Nov. 29, 2013 | |
Income Statement [Abstract] | ||||
Net sales | $32,029,326 | $33,486,323 | $66,154,362 | $68,628,161 |
Cost of sales | 16,463,995 | 17,569,326 | 33,466,861 | 35,038,413 |
Gross margin | 15,565,331 | 15,916,997 | 32,687,501 | 33,589,748 |
Selling, general and administrative expenses | 15,401,103 | 15,746,664 | 31,426,351 | 32,000,011 |
Operating income | 164,228 | 170,333 | 1,261,150 | 1,589,737 |
Other income (expenses): | ||||
Gain (loss) on sale of assets | 8,862 | -9,370 | 252,806 | 9,283 |
Interest expense | -90,583 | -80,552 | -230,450 | -165,663 |
Other income | 6,489 | 27,795 | 23,275 | 53,898 |
Total other income (expenses) | -75,232 | -62,127 | 45,631 | -102,482 |
Income before income taxes | 88,996 | 108,206 | 1,306,781 | 1,487,255 |
Income taxes | 48,269 | 82,010 | 498,828 | 689,531 |
Net income | $40,727 | $26,196 | $807,953 | $797,724 |
PER SHARE OF COMMON STOCK | ||||
Basic earnings | $0 | $0 | $0.07 | $0.07 |
Weighted average number of common stock shares outstanding: | ||||
Basic | 11,732,632 | 11,732,632 | 11,732,632 | 11,732,632 |
Cash dividends paid per share of common stock | $0.03 | $0.03 | $0.06 | $0.06 |
Condensed_Consolidated_Stateme1
Condensed Consolidated Statements of Cash Flows (USD $) | 6 Months Ended | |
Nov. 28, 2014 | Nov. 29, 2013 | |
CASH FLOWS FROM OPERATING ACTIVITIES | ||
Cash received from customers | $66,806,920 | $68,132,959 |
Miscellaneous income | 23,275 | 53,898 |
Cash paid to suppliers and employees | -31,360,105 | -32,821,744 |
Cash paid for operating expenses | -32,038,530 | -32,731,666 |
Income taxes paid | -761,558 | -298,637 |
Interest expenses paid | -230,450 | -165,663 |
Net cash provided by operating activities | 2,439,552 | 2,169,147 |
CASH FLOWS FROM INVESTING ACTIVITIES | ||
Purchase of property, plant and equipment | -713,604 | -1,022,538 |
Proceeds from sale of property, plant and equipment | 254,356 | 25,625 |
Net cash used in investing activities | -459,248 | -996,913 |
CASH FLOWS FROM FINANCING ACTIVITIES | ||
Debt proceeds | 15,825,219 | 19,500,557 |
Debt repayments | -16,007,227 | -19,682,446 |
Change in checks outstanding in excess of bank balances | -42,543 | 326,216 |
Cash dividends paid | -733,290 | -733,290 |
Net cash used in financing activities | -957,841 | -588,963 |
Net change in cash and cash equivalents | 1,022,463 | 583,271 |
Cash and cash equivalents at beginning of period | 1,160,630 | 757,111 |
Cash and cash equivalents at end of period | 2,183,093 | 1,340,382 |
RECONCILIATION OF NET INCOME TO NET CASH FROM OPERATING ACTIVITIES | ||
Net Income | 807,953 | 797,724 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Depreciation and amortization | 1,975,180 | 1,838,298 |
Gain on sale of property and equipment | -252,806 | -9,283 |
Changes in operating assets and liabilities: | ||
Change in receivables - net | 652,558 | -495,202 |
Change in inventories | 309,766 | -795,206 |
Change in prepaid expenses | -213,042 | -722,122 |
Change in other assets | 85,262 | 339,466 |
Change in accounts payable | 445,177 | 1,675,665 |
Change in accrued expenses | -1,049,570 | -796,421 |
Change in salary continuation | -58,196 | -54,666 |
Change in accrued income taxes | -262,730 | 390,894 |
Net cash provided by operating activities | $2,439,552 | $2,169,147 |
Basis_of_Accounting
Basis of Accounting | 6 Months Ended | |
Nov. 28, 2014 | ||
Accounting Policies [Abstract] | ||
Basis of Accounting | 1 | The accompanying unaudited condensed consolidated financial statements of Golden Enterprises, Inc. (the “Company”) have been prepared in accordance with accounting principles generally accepted in the United States of America (GAAP) for interim financial information and with the instructions to Form 10-Q and Article 10 to Regulation S-X. 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. For further information, refer to the consolidated financial statements and footnotes included in the Company’s Annual Report on Form 10-K for year ended May 30, 2014 which can be found on our website at www.goldenflake.com/financial.html. |
Consolidated_Results_of_Operat
Consolidated Results of Operations | 6 Months Ended |
Nov. 28, 2014 | |
Accounting Policies [Abstract] | |
Consolidated Results of Operations | 2 |
The consolidated results of operations for the twenty-six weeks ended November 28, 2014 are not necessarily indicative of the results to be expected for the fifty-two week fiscal year ending May 29, 2015. |
Prepaid_Assets
Prepaid Assets | 6 Months Ended | ||||||||
Nov. 28, 2014 | |||||||||
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | |||||||||
Prepaid Assets | 3 | The following tables summarize the prepaid assets accounts at November 28, 2014 and May 30, 2014. | |||||||
28-Nov-14 | 30-May-14 | ||||||||
Truck shop supplies | $ | 319,972 | $ | 351,985 | |||||
Insurance deposit | 48,548 | 58,548 | |||||||
Prepaid marketplace spending | 202,839 | 274,571 | |||||||
Deferred advertising fees | 151,234 | - | |||||||
Prepaid insurance | 452,420 | 274,389 | |||||||
Prepaid taxes/licenses | 55,760 | 88,858 | |||||||
Prepaid dues/supplies | 95,730 | 7,742 | |||||||
Other | 164,400 | 221,768 | |||||||
$ | 1,490,903 | $ | 1,277,861 | ||||||
Raw_Materials_and_Supplies
Raw Materials and Supplies | 6 Months Ended | |
Nov. 28, 2014 | ||
Text Block [Abstract] | ||
Raw Materials and Supplies | 4 | 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. |
Inventory_Valuation
Inventory Valuation | 6 Months Ended | |
Nov. 28, 2014 | ||
Inventory Disclosure [Abstract] | ||
Inventory Valuation | 5 | Inventories are stated at the lower of cost or market. Cost is computed on the first-in, first-out method. |
Letter_of_Credit
Letter of Credit | 6 Months Ended | |
Nov. 28, 2014 | ||
Text Block [Abstract] | ||
Letter of Credit | 6 | The Company has a letter of credit in the amount of $1,850,000 outstanding at November 28, 2014 and at November 29, 2013. The letter of credit supports the Company’s commercial self-insurance program. |
LineofCredit_Agreement
Line-of-Credit Agreement | 6 Months Ended |
Nov. 28, 2014 | |
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. The line-of-credit is subject to the Company’s continued credit worthiness and compliance with the terms and conditions of the loan agreement. The Company’s line-of-credit debt as of November 28, 2014 was $2,529,592 with an interest rate of 3.25%, leaving the Company with $470,408 of credit availability. The Company’s line-of-credit debt as of May 30, 2014 was $2,528,511 with an interest rate of 3.25%, which left the Company with $471,489 of credit availability. |
Notes_Payable
Notes Payable | 6 Months Ended | |
Nov. 28, 2014 | ||
Debt Disclosure [Abstract] | ||
Notes Payable | 8 | The Company has a note payable with a balance of $5,131,123 as of November 28, 2014. The loan 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-year fixed-rate note at 4.25% for $4,000,000. In March 2011, the loan was modified by taking the remaining balance of $3,532,700 and adding another $2,900,000 to finance the purchase and implementation of a new Enterprise Resource Planning computer software system. At that time, the interest rate on the loan was adjusted to 3.52% and the terms were re-established at 15 years for the repayment of the loan. The Company has been making monthly payments on the note and intends to repay it at the earliest practicable date, as there are no prepayment penalties. |
Concentration_of_Credit_Risk
Concentration of Credit Risk | 6 Months Ended | ||
Nov. 28, 2014 | |||
Risks and Uncertainties [Abstract] | |||
Concentration of Credit Risk | 9 | 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. |
Prepaid_Assets_Tables
Prepaid Assets (Tables) | 6 Months Ended | ||||||||
Nov. 28, 2014 | |||||||||
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | |||||||||
Schedule of Prepaid Assets | The following tables summarize the prepaid assets accounts at November 28, 2014 and May 30, 2014. | ||||||||
28-Nov-14 | 30-May-14 | ||||||||
Truck shop supplies | $ | 319,972 | $ | 351,985 | |||||
Insurance deposit | 48,548 | 58,548 | |||||||
Prepaid marketplace spending | 202,839 | 274,571 | |||||||
Deferred advertising fees | 151,234 | - | |||||||
Prepaid insurance | 452,420 | 274,389 | |||||||
Prepaid taxes/licenses | 55,760 | 88,858 | |||||||
Prepaid dues/supplies | 95,730 | 7,742 | |||||||
Other | 164,400 | 221,768 | |||||||
$ | 1,490,903 | $ | 1,277,861 | ||||||
Prepaid_Assets_Detail
Prepaid Assets (Detail) (USD $) | Nov. 28, 2014 | 30-May-14 |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | ||
Truck shop supplies | $319,972 | $351,985 |
Insurance deposit | 48,548 | 58,548 |
Prepaid marketplace spending | 202,839 | 274,571 |
Deferred advertising fees | 151,234 | |
Prepaid insurance | 452,420 | 274,389 |
Prepaid taxes/licenses | 55,760 | 88,858 |
Prepaid dues/supplies | 95,730 | 7,742 |
Other | 164,400 | 221,768 |
Prepaid assets | $1,490,903 | $1,277,861 |
Letter_of_Credit_Detail
Letter of Credit (Detail) (USD $) | Nov. 28, 2014 | Nov. 29, 2013 |
Debt Disclosure [Abstract] | ||
Letter of credit, outstanding amount | $1,850,000 | $1,850,000 |
LineofCredit_Detail
Line-of-Credit (Detail) (USD $) | Nov. 28, 2014 | 30-May-14 |
Debt Disclosure [Abstract] | ||
Line-of-credit agreement, maximum borrowing capacity | $3,000,000 | $3,000,000 |
Line-of-credit, outstanding debt | 2,529,592 | 2,528,511 |
Line-of-credit, interest rate | 3.25% | 3.25% |
Line-of-credit, available credit | $470,408 | $471,489 |
Notes_Payable_Detail
Notes Payable (Detail) (USD $) | 6 Months Ended | ||
Nov. 28, 2014 | Mar. 31, 2011 | Sep. 30, 2009 | |
Debt Instrument [Line Items] | |||
Notes payable | 5,131,123 | $3,532,700 | |
Equipment note, interest rate | 3.52% | 4.25% | |
Equipment note, face amount | $2,900,000 | $4,000,000 | |
Original Loan Terms [Member] | |||
Debt Instrument [Line Items] | |||
Equipment note, term | 10 years | ||
Modified Loan Terms [Member] | |||
Debt Instrument [Line Items] | |||
Equipment note, term | 15 years |