National Beverage (FIZZ) 10-Q 7 Sep 17 2018 Q1 Quarterly report Financial data

Document And Entity Information

Document And Entity Information - shares	3 Months Ended
	Jul. 29, 2017	Sep. 01, 2017
Document Information [Line Items]
Entity Registrant Name	National Beverage Corp.
Entity Central Index Key	69,891
Trading Symbol	fizz
Current Fiscal Year End Date	--04-28
Entity Filer Category	Accelerated Filer
Entity Current Reporting Status	Yes
Entity Voluntary Filers	No
Entity Well-known Seasoned Issuer	No
Entity Common Stock, Shares Outstanding (in shares)		46,586,750
Document Type	10-Q
Document Period End Date	Jul. 29, 2017
Document Fiscal Year Focus	2,018
Document Fiscal Period Focus	Q1
Amendment Flag	false

Consolidated Balance Sheets (Un

Consolidated Balance Sheets (Unaudited) - USD ($) $ in Thousands	Jul. 29, 2017	Apr. 29, 2017
Current assets:
Cash and equivalents	$ 175,915	$ 136,372
Trade receivables - net	86,138	71,319
Inventories	57,326	53,355
Prepaid and other assets	3,857	7,275
Total current assets	323,236	268,321
Property, plant and equipment - net	66,150	65,150
Goodwill	13,145	13,145
Intangible assets	1,615	1,615
Other assets	5,631	5,752
Total assets	409,777	353,983
Current liabilities:
Accounts payable	54,339	58,100
Accrued liabilities	35,640	29,017
Income taxes payable	15,870	89
Dividends payable	69,878
Total current liabilities	175,727	87,206
Deferred income taxes net	11,825	12,087
Other liabilities	8,754	9,072
Shareholders' equity:
Common stock, $.01 par value - 75,000,000 shares authorized; 50,619,234 shares issued (50,616,134 shares at April 29)	506	506
Additional paid-in capital	35,725	35,638
Retained earnings	196,322	227,928
Accumulated other comprehensive loss	(1,232)	(604)
Total shareholders' equity	213,471	245,618
Total liabilities and shareholders' equity	409,777	353,983
Series C Preferred Stock [Member]
Shareholders' equity:
Preferred stock, $1 par value - 1,000,000 shares authorized: Series C - 150,000 shares issued	150	150
Treasury stock, value	(5,100)	(5,100)
Treasury Stock, Common [Member]
Shareholders' equity:
Treasury stock, value	$ (12,900)	$ (12,900)

Consolidated Balance Sheets (U3

Consolidated Balance Sheets (Unaudited) (Parentheticals) - $ / shares	Jul. 29, 2017	Apr. 29, 2017
Common stock, par value (in dollars per share)	$ 0.01	$ 0.01
Common stock, shares shares authorized (in shares)	75,000,000	75,000,000
Common stock, shares issued (in shares)	50,619,234	50,616,134
Series C Preferred Stock [Member]
Preferred stock, par value (in dollars per share)	$ 1	$ 1
Preferred stock, shares issued (in shares)	150,000	150,000
Preferred stock, shares authorized (in shares)	1,000,000	1,000,000
Treasury stock, shares (in shares)	150,000	150,000
Treasury Stock, Common [Member]
Treasury stock, shares (in shares)	4,032,784	4,032,784

Consolidated Statements of Inco

Consolidated Statements of Income (Unaudited) - USD ($) shares in Thousands, $ in Thousands	3 Months Ended
	Jul. 29, 2017	Jul. 30, 2016
Net sales	$ 259,832	$ 217,108
Cost of sales	155,329	131,614
Gross profit	104,503	85,494
Selling, general and administrative expenses	46,723	41,488
Interest expense	50	38
Other income - net	311	97
Income before income taxes	58,041	44,065
Provision for income taxes	19,769	15,070
Net income	$ 38,272	$ 28,995
Earnings per common share:
Basic (in dollars per share)	$ 0.82	$ 0.62
Diluted (in dollars per share)	$ 0.82	$ 0.62
Weighted average common shares outstanding:
Basic (in shares)	46,585	46,556
Diluted (in shares)	46,916	46,767

Consolidated Statements of Comp

Consolidated Statements of Comprehensive Income (Unaudited) - USD ($) $ in Thousands	3 Months Ended
	Jul. 29, 2017	Jul. 30, 2016
Net income	$ 38,272	$ 28,995
Other comprehensive (loss) income, net of tax:
Cash flow hedges	(628)	415
Comprehensive income	$ 37,644	$ 29,410

Consolidated Statements of Shar

Consolidated Statements of Shareholders' Equity (Unaudited) - USD ($) $ in Thousands	Total	Preferred Stock [Member]Series C Preferred Stock [Member]	Common Stock [Member]	Additional Paid-in Capital [Member]	Retained Earnings [Member]	AOCI Attributable to Parent [Member]	Treasury Stock, Preferred [Member]Series C Preferred Stock [Member]	Treasury Stock, Common [Member]
Balance at Apr. 30, 2016				$ 34,570	$ 190,733	$ (1,807)
Stock options exercised				29
Stock-based compensation				49
Stock-based tax benefits				28
Net income	$ 28,995				28,995
Common stock cash dividend
Cash flow hedges	415					415
Balance at Jul. 30, 2016	235,668	$ 150	$ 506	34,676	219,728	(1,392)	$ (5,100)	$ (12,900)
Balance at Apr. 30, 2017				35,638	227,928	(604)
Stock options exercised				46
Stock-based compensation				41
Stock-based tax benefits
Net income	38,272				38,272
Common stock cash dividend					(69,878)
Cash flow hedges	(628)					(628)
Balance at Jul. 29, 2017	$ 213,471	$ 150	$ 506	$ 35,725	$ 196,322	$ (1,232)	$ (5,100)	$ (12,900)

Consolidated Statements of Cash

Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Thousands	3 Months Ended
	Jul. 29, 2017	Jul. 30, 2016
Operating Activities:
Net income	$ 38,272	$ 28,995
Adjustments to reconcile net income to net cash provided by (used in) operating activities:
Depreciation and amortization	3,531	3,102
Deferred income tax provision (benefit)	108	(64)
Loss (gain) on disposal of property, net	6	(6)
Stock-based compensation	41	49
Stock-based tax benefits		28
Changes in assets and liabilities:
Trade receivables	(14,819)	(14,788)
Inventories	(3,971)	(3,897)
Prepaid and other assets	(656)	(192)
Accounts payable	(3,761)	(1,865)
Accrued and other liabilities	24,791	19,088
Net cash provided by operating activities	43,542	30,450
Investing Activities:
Additions to property, plant and equipment	(4,054)	(3,495)
Proceeds from sale of property, plant and equipment	9	15
Net cash used in investing activities	(4,045)	(3,480)
Financing Activities:
Proceeds from stock options exercised	46	29
Net cash provided by financing activities	46	29
Net Increase in Cash and Equivalents	39,543	26,999
Cash and Equivalents - Beginning of Period	136,372	105,577
Cash and Equivalents - End of Period	175,915	132,576
Other Cash Flow Information:
Interest paid	25	127
Income taxes paid	$ 648	$ 1,066

Note 1 - Significant Accounting

Note 1 - Significant Accounting Policies	3 Months Ended
	Jul. 29, 2017
Notes to Financial Statements
Significant Accounting Policies [Text Block]	1. Basis of Presentation The consolidated financial statements include the accounts of National Beverage Corp. and its subsidiaries. Significant intercompany transactions and accounts have been eliminated. The consolidated financial statements have been prepared in accordance with United States generally accepted accounting principles (“GAAP”) and rules and regulations of the Securities and Exchange Commission for interim financial reporting. Accordingly, they do not 10 April 29, 2017. 6, The preparation of financial statements requires management to make estimates and assumptions that affect the amounts reported in the consolidated financial statements and accompanying notes. Actual results could differ from those estimates. In our opinion, all adjustments (consisting of normal recurring adjustments) considered necessary for a fair presentation have been included. Results for the interim periods presented are not Derivative Financial Instruments We use derivative financial instruments to partially mitigate our exposure to changes in raw material costs. All derivative financial instruments are recorded at fair value in our Consolidated Balance Sheets. The estimated fair value of derivative financial instruments is calculated based on market rates to settle the instruments. We do not 5. Earnings Per Common Share Basic earnings per common share is computed by dividing earnings available to common shareholders by the weighted average number of common shares outstanding during the period. Diluted earnings per common share is calculated in a similar manner, but includes the dilutive effect of stock options. Inventories Inventories are stated at the lower of first first July 29, 2017 $35.7 and raw materials of $21.6 April 29, 2017 $35.0 $18.4

Note 2 - Property, Plant and Eq

Note 2 - Property, Plant and Equipment	3 Months Ended
	Jul. 29, 2017
Notes to Financial Statements
Property, Plant and Equipment Disclosure [Text Block]	2. Property, plant and equipment consist of the following: (In thousands) July 29, 2017 April 29, 2017 Land $ 9,500 $ 9,500 Buildings and improvements 51,164 51,157 Machinery and equipment 175,778 172,257 Total 236,442 232,914 Less accumulated depreciation (170,292 ) (167,764 ) Property, plant and equipment – net $ 66,150 $ 65,150 Depreciation expense was $3.0 three July 29, 2017 $2.7 three July 30, 2016.

Note 3 - Debt

Note 3 - Debt	3 Months Ended
	Jul. 29, 2017
Notes to Financial Statements
Debt Disclosure [Text Block]	3 . DEBT At July 29, 2017, $100 October 10, 2017 April 30, 2021 .9% one no July 29, 2017 April 29, 2017. July 29, 2017, $2.2 $97.8 The Credit Facilities require the subsidiary to maintain certain financial ratios, including debt to net worth and debt to EBITDA (as defined in the Credit Facilities), and contain other restrictions, none July 29, 2017,

Note 4 - Stock-based Compensati

Note 4 - Stock-based Compensation	3 Months Ended
	Jul. 29, 2017
Notes to Financial Statements
Disclosure of Compensation Related Costs, Share-based Payments [Text Block]	4 . STOCK-BASED COMPENSATION During the three July 29, 2017, 500 $29.61 3,100 $14.77 July 29, 2017, 380,995 $11.46 2,810,014

Note 5 - Derivative Financial I

Note 5 - Derivative Financial Instruments	3 Months Ended
	Jul. 29, 2017
Notes to Financial Statements
Derivative Instruments and Hedging Activities Disclosure [Text Block]	5 . DERIVATIVE FINANCIAL INSTRUMENTS From time to time, we enter into aluminum swap contracts to partially mitigate our exposure to changes in the cost of aluminum cans. Such financial instruments are designated and accounted for as a cash flow hedge. Accordingly, gains or losses attributable to the effective portion of the cash flow hedge are reported in Accumulated Other Comprehensive Income (Loss) (“AOCI”) and reclassified into cost of sales in the period in which the hedged transaction affects earnings. The ineffective portion of the change in fair value of our cash flow hedge was immaterial. The following summarizes the gains (losses) recognized in the Consolidated Statements of Income and AOCI relative to the cash flow hedge for the three July 29, 2017 July 30, 2016: (In thousands) 2017 2016 Recognized in AOCI: Loss before income taxes $ (967 ) $ (450 ) Less income tax benefit (359 ) (167 ) Net (608 ) (283 ) Reclassified from AOCI to cost of sales: Gain (loss) before income taxes 31 (1,110 ) Less income tax provision (benefit) 11 (412 ) Net 20 (698 ) Net change to AOCI $ (628 ) $ 415 As of July 29, 2017, $53.2 no $1.4 12 1. As of July 29, 2017, $205,000, $1.6 $318,000, April 29, 2017, $602,000, $848,000 $476,000, not 2

Note 6 - Recently Issued Accoun

Note 6 - Recently Issued Accounting Pronouncements	3 Months Ended
	Jul. 29, 2017
Notes to Financial Statements
Description of New Accounting Pronouncements Not yet Adopted [Text Block]	6 . RECENTLY ISSUED ACCOUNTING PRONOUNCEMENTS In March 2016, 2016 09, 2016 09” 2016 - 09 April 30, 2017. $81,000 three July 29, 2017 Also effective April 30, 2017, $28,000 three July 30, 2016. In February 2016, No. 2016 02, 2016 02” 2016 02 2016 02 April 28, 2019. In November 2015, No. 2015 17, 2015 17” 2015 17 2015 17 April 30, 2017, $3.9 April 29, 2017 . In May 2014, No. 2014 09, 2014 09” 2014 09 August 12, 2015, 2015 14 2014 09 one April 29, 2018. not

Note 7 - Commitments and Contin

Note 7 - Commitments and Contingencies	3 Months Ended
	Jul. 29, 2017
Notes to Financial Statements
Commitments and Contingencies Disclosure [Text Block]	7 . COMMITMENTS AND CONTINGENCIES As of July 29, 2017, $2.0 July 31, 2017 24 August 1, 2019. not

Note 8 - Cash Dividend

Note 8 - Cash Dividend	3 Months Ended
	Jul. 29, 2017
Notes to Financial Statements
Stockholders' Equity Note Disclosure [Text Block]	8 . CASH DIVIDEND On May 5, 2017, $1.50 June 5, 2017 $69.9 August 4, 2017. The cash dividend is reported as a current liability in the accompanying Condensed Consolidated Balance Sheets.

Significant Accounting Policies

Significant Accounting Policies (Policies)	3 Months Ended
	Jul. 29, 2017
Accounting Policies [Abstract]
Basis of Accounting, Policy [Policy Text Block]	Basis of Presentation The consolidated financial statements include the accounts of National Beverage Corp. and its subsidiaries. Significant intercompany transactions and accounts have been eliminated. The consolidated financial statements have been prepared in accordance with United States generally accepted accounting principles (“GAAP”) and rules and regulations of the Securities and Exchange Commission for interim financial reporting. Accordingly, they do not 10 April 29, 2017. 6, The preparation of financial statements requires management to make estimates and assumptions that affect the amounts reported in the consolidated financial statements and accompanying notes. Actual results could differ from those estimates. In our opinion, all adjustments (consisting of normal recurring adjustments) considered necessary for a fair presentation have been included. Results for the interim periods presented are not
Derivatives, Policy [Policy Text Block]	Derivative Financial Instruments We use derivative financial instruments to partially mitigate our exposure to changes in raw material costs. All derivative financial instruments are recorded at fair value in our Consolidated Balance Sheets. The estimated fair value of derivative financial instruments is calculated based on market rates to settle the instruments. We do not 5.
Earnings Per Share, Policy [Policy Text Block]	Earnings Per Common Share Basic earnings per common share is computed by dividing earnings available to common shareholders by the weighted average number of common shares outstanding during the period. Diluted earnings per common share is calculated in a similar manner, but includes the dilutive effect of stock options.
Inventory, Policy [Policy Text Block]	Inventories Inventories are stated at the lower of first first July 29, 2017 $35.7 and raw materials of $21.6 April 29, 2017 $35.0 $18.4

Note 2 - Property, Plant and 17

Note 2 - Property, Plant and Equipment (Tables)	3 Months Ended
	Jul. 29, 2017
Notes Tables
Property, Plant and Equipment [Table Text Block]	(In thousands) July 29, 2017 April 29, 2017 Land $ 9,500 $ 9,500 Buildings and improvements 51,164 51,157 Machinery and equipment 175,778 172,257 Total 236,442 232,914 Less accumulated depreciation (170,292 ) (167,764 ) Property, plant and equipment – net $ 66,150 $ 65,150

Note 5 - Derivative Financial18

Note 5 - Derivative Financial Instruments (Tables)	3 Months Ended
	Jul. 29, 2017
Notes Tables
Schedule of Derivatives Instruments Statements of Financial Performance and Financial Position, Location [Table Text Block]	(In thousands) 2017 2016 Recognized in AOCI: Loss before income taxes $ (967 ) $ (450 ) Less income tax benefit (359 ) (167 ) Net (608 ) (283 ) Reclassified from AOCI to cost of sales: Gain (loss) before income taxes 31 (1,110 ) Less income tax provision (benefit) 11 (412 ) Net 20 (698 ) Net change to AOCI $ (628 ) $ 415

Note 1 - Significant Accounti19

Note 1 - Significant Accounting Policies (Details Textual) - USD ($) $ in Millions	Jul. 29, 2017	Apr. 29, 2017
Inventory, Finished Goods, Gross	$ 35.7	$ 35
Inventory, Raw Materials, Gross	$ 21.6	$ 18.4

Note 2 - Property, Plant and 20

Note 2 - Property, Plant and Equipment (Details Textual) - USD ($) $ in Millions	3 Months Ended
	Jul. 29, 2017	Jul. 30, 2016
Depreciation	$ 3	$ 2.7

Note 2 - Property, Plant and 21

Note 2 - Property, Plant and Equipment - Summary of Property, Plant and Equipment (Details) - USD ($) $ in Thousands	Jul. 29, 2017	Apr. 29, 2017
Land	$ 9,500	$ 9,500
Buildings and improvements	51,164	51,157
Machinery and equipment	175,778	172,257
Total	236,442	232,914
Less accumulated depreciation	(170,292)	(167,764)
Property, plant and equipment – net	$ 66,150	$ 65,150

Note 3 - Debt (Details Textual)

Note 3 - Debt (Details Textual) - USD ($) $ in Thousands	3 Months Ended
	Jul. 29, 2017	Apr. 29, 2017
Long-term Line of Credit	$ 0	$ 0
Revolving Credit Facility [Member]
Line of Credit Facility, Maximum Borrowing Capacity	100,000
Letters of Credit Outstanding, Amount	2,200
Line of Credit Facility, Remaining Borrowing Capacity	$ 97,800
Revolving Credit Facility [Member] | London Interbank Offered Rate (LIBOR) [Member]
Debt Instrument, Basis Spread on Variable Rate	0.90%

Note 4 - Stock-based Compensa23

Note 4 - Stock-based Compensation (Details Textual)	3 Months Ended
	Jul. 29, 2017$ / sharesshares
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Gross	500
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Weighted Average Grant Date Fair Value | $ / shares	$ 29.61
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercises in Period	3,100
Share-based Compensation Arrangements by Share-based Payment Award, Options, Exercises in Period, Weighted Average Exercise Price | $ / shares	$ 14.77
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Number	380,995
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Weighted Average Exercise Price | $ / shares	$ 11.46
Employee Stock Option [Member]
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Available for Grant	2,810,014

Note 5 - Derivative Financial24

Note 5 - Derivative Financial Instruments (Details Textual) - USD ($)	Jul. 29, 2017	Apr. 29, 2017
Derivative, Notional Amount	$ 53,200,000
Price Risk Cash Flow Hedge Unrealized Gain (Loss) to be Reclassified During Next 12 Months	(1,400,000)
Prepaid Expenses and Other Current Assets [Member]
Derivative Asset, Current	205,000	$ 602,000
Accrued Liabilities1 [Member]
Derivative Liability, Current	1,600,000	848,000
Other Liabilities [Member]
Derivative Liability, Noncurrent	$ 318,000	$ 476,000

Note 5 - Derivative Financial25

Note 5 - Derivative Financial Instruments - Derivatives Instruments, Statements of Financial Performance and Financial Position (Details) - USD ($) $ in Thousands	3 Months Ended
	Jul. 29, 2017	Jul. 30, 2016
Recognized in AOCI:
Loss before income taxes	$ (967)	$ (450)
Less income tax benefit	(359)	(167)
Net	(608)	(283)
Reclassified from AOCI to cost of sales:
Gain (loss) before income taxes	31	(1,110)
Less income tax provision (benefit)	11	(412)
Net	20	(698)
Net change to AOCI	$ (628)	$ 415

Note 6 - Recently Issued Acco26

Note 6 - Recently Issued Accounting Pronouncements (Details Textual) - USD ($)	3 Months Ended
	Jul. 29, 2017	Jul. 29, 2017	Jul. 30, 2016
Income Tax Expense (Benefit)		$ 19,769,000	$ 15,070,000
Accounting Standards Update 2016-09 [Member]
Income Tax Expense (Benefit)	$ (81,000)
Reclassification of Excess Tax Benefits from Financing to Operating Activities [Member] | Three Months Ended July 30, 2016 [Member]
Prior Period Reclassification Adjustment	$ 28,000
Reclassification of Deferred Taxes from Current to Non-current [Member] | April 29, 2017 [Member]
Prior Period Reclassification Adjustment		$ 3,900,000

Note 7 - Commitments and Cont27

Note 7 - Commitments and Contingencies (Details Textual) - USD ($) $ in Millions	Jul. 31, 2017	Jul. 29, 2017
Leveraged Leases, Net Investment in Leveraged Leases Disclosure, Residual Value of Leased Assets		$ 2
Subsequent Event [Member] | Equipment Lease [Member]
Lessee, Operating Lease, Renewal Term	2 years

Note 8 - Cash Dividend (Details

Note 8 - Cash Dividend (Details Textual) - USD ($) $ / shares in Units, $ in Millions	Aug. 04, 2017	Jun. 05, 2017	May 05, 2017
Common Stock, Dividends, Per Share, Declared			$ 1.50
Payments of Ordinary Dividends, Common Stock	$ 69.9
Dividends Payable, Date of Record		Jun. 5, 2017