National Beverage (FIZZ) 10-Q 6 Dec 18 2019 Q2 Quarterly report Financial data

Document And Entity Information

Document And Entity Information - shares	6 Months Ended
	Oct. 27, 2018	Dec. 03, 2018
Document Information [Line Items]
Entity Registrant Name	National Beverage Corp.
Entity Central Index Key	69,891
Trading Symbol	fizz
Current Fiscal Year End Date	--04-27
Entity Filer Category	Large Accelerated Filer
Entity Current Reporting Status	Yes
Entity Emerging Growth Company	false
Entity Small Business	false
Entity Common Stock, Shares Outstanding (in shares)		46,636,740
Document Type	10-Q
Document Period End Date	Oct. 27, 2018
Document Fiscal Year Focus	2,019
Document Fiscal Period Focus	Q2
Amendment Flag	false

Consolidated Balance Sheets (Un

Consolidated Balance Sheets (Unaudited) - USD ($) $ in Thousands	Oct. 27, 2018	Apr. 28, 2018
Assets
Cash and equivalents	$ 250,060	$ 189,864
Trade receivables - net	84,310	84,360
Inventories	80,834	60,920
Prepaid and other assets	13,758	17,823
Total current assets	428,962	352,967
Property, plant and equipment - net	95,785	85,807
Goodwill	13,145	13,145
Intangible assets	1,615	1,615
Other assets	4,689	5,298
Total assets	544,196	458,832
Liabilities and Shareholders' Equity
Accounts payable	77,942	74,853
Accrued liabilities	25,570	29,718
Income taxes payable	0	99
Total current liabilities	103,512	104,670
Deferred income taxes net	15,974	14,502
Other liabilities	7,676	8,220
Shareholders' equity:
Preferred stock, $1 par value - 1,000,000 shares authorized: Series C - 150,000 shares issued	150	150
Common stock, $.01 par value - 200,000,000 shares authorized; 50,669,284 shares issued (50,650,784 shares at April 28)	507	507
Additional paid-in capital	36,800	36,358
Retained earnings	397,732	307,824
Accumulated other comprehensive income (loss)	(155)	4,601
Total shareholders' equity	417,034	331,440
Total liabilities and shareholders' equity	544,196	458,832
Series C Preferred Stock [Member]
Shareholders' equity:
Treasury stock, value	(5,100)	(5,100)
Treasury Stock, Common [Member]
Shareholders' equity:
Treasury stock, value	$ (12,900)	$ (12,900)

Consolidated Balance Sheets (_2

Consolidated Balance Sheets (Unaudited) (Parentheticals) - $ / shares	Oct. 27, 2018	Apr. 28, 2018
Preferred stock, par value (in dollars per share)	$ 1	$ 1
Preferred stock, shares authorized (in shares)	1,000,000	1,000,000
Preferred stock, shares issued (in shares)	150,000	150,000
Common stock, par value (in dollars per share)	$ 0.01	$ 0.01
Common stock, shares authorized (in shares)	200,000,000	200,000,000
Common stock, shares issued (in shares)	50,669,284	50,669,284
Series C Preferred Stock [Member]
Treasury stock, shares (in shares)	150,000	150,000
Treasury Stock, Common [Member]
Treasury stock, shares (in shares)	4,032,544	4,032,544

Consolidated Statements of Inco

Consolidated Statements of Income (Unaudited) - USD ($) shares in Thousands, $ in Thousands	3 Months Ended		6 Months Ended
	Oct. 27, 2018	Oct. 28, 2017	Oct. 27, 2018	Oct. 28, 2017
Net sales	$ 260,709	$ 244,119	$ 553,299	$ 503,951
Cost of sales	157,185	148,039	334,080	303,368
Gross profit	103,524	96,080	219,219	200,583
Selling, general and administrative expenses	51,366	45,423	104,056	92,146
Interest expense	51	51	101	101
Other income - net	1,187	306	2,042	617
Income before income taxes	53,294	50,912	117,104	108,953
Provision for income taxes	12,216	16,932	27,196	36,701
Net income	$ 41,078	$ 33,980	$ 89,908	$ 72,252
Earnings per common share:
Basic (in dollars per share)	$ 0.88	$ 0.73	$ 1.93	$ 1.55
Diluted (in dollars per share)	$ 0.88	$ 0.72	$ 1.92	$ 1.54
Weighted average common shares outstanding:
Basic (in shares)	46,628	46,593	46,623	46,589
Diluted (in shares)	46,928	46,925	46,923	46,921

Consolidated Statements of Comp

Consolidated Statements of Comprehensive Income (Unaudited) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Oct. 27, 2018	Oct. 28, 2017	Oct. 27, 2018	Oct. 28, 2017
Net income	$ 41,078	$ 33,980	$ 89,908	$ 72,252
Other comprehensive (loss) income, net of tax:
Cash flow hedges	(2,716)	3,247	(4,756)	2,619
Comprehensive income	$ 38,362	$ 37,227	$ 85,152	$ 74,871

Consolidated Statements of Shar

Consolidated Statements of Shareholders' Equity (Unaudited) - USD ($) $ in Thousands	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]	Total
Balance at Oct. 28, 2017	$ 150	$ 506	$ 36,000		$ 2,015	$ (5,100)	$ (12,900)	$ 250,973
Balance at Apr. 29, 2017			35,638	$ 227,928	(604)
Stock options exercised			282
Stock-based compensation			80
Stock-based tax benefits
Net income								72,252
Cash flow hedges, net of tax					2,619			2,619
Balance at Oct. 27, 2018	150	507	36,800		(155)	(5,100)	(12,900)	417,034
Balance at Apr. 29, 2017			35,638	227,928	(604)
Net income				72,252
Common stock cash dividend				(69,878)
End of period				230,302
Balance at Oct. 27, 2018	$ 150	$ 507	36,800		(155)	$ (5,100)	$ (12,900)	417,034
Balance at Apr. 28, 2018			36,358	307,824	4,601			331,440
Stock options exercised			325
Stock-based compensation			$ 117
Stock-based tax benefits
Net income				89,908				89,908
Common stock cash dividend
End of period				$ 397,732
Cash flow hedges, net of tax					$ (4,756)			$ (4,756)

Consolidated Statements of Cash

Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Thousands	6 Months Ended
	Oct. 27, 2018	Oct. 28, 2017
Operating Activities:
Net income	$ 89,908	$ 72,252
Adjustments to reconcile net income to net cash provided by (used in) operating activities:
Depreciation and amortization	7,355	7,087
Deferred income tax provision	2,822	214
Gain on sale of property, net	3
Stock-based compensation	117	80
Changes in assets and liabilities:
Trade receivables	50	(8,974)
Inventories	(19,914)	(6,370)
Prepaid and other assets	(7,999)	(1,069)
Accounts payable	3,089	6,626
Accrued and other liabilities	741	2,492
Net cash provided by operating activities	76,172	72,338
Investing Activities:
Additions to property, plant and equipment	(16,302)	(10,317)
Proceeds from sale of property, plant and equipment	1	39
Net cash used in investing activities	(16,301)	(10,278)
Financing Activities:
Dividends paid on common stock		(69,878)
Proceeds from stock options exercised	325	282
Net cash provided by (used in) financing activities	325	(69,596)
Net Increase (Decrease) in Cash and Equivalents	60,196	(7,536)
Cash and Equivalents - Beginning of Period	189,864	136,372
Cash and Equivalents - End of Period	250,060	128,836
Other Cash Flow Information:
Interest paid	38	38
Income taxes paid	$ 23,835	$ 37,643

Note 1 - Significant Accounting

Note 1 - Significant Accounting Policies	6 Months Ended
	Oct. 27, 2018
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 28, 2018. 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 P er 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 October 27, 2018 $52.5 $28.3 April 28, 2018 $37.6 $23.3

Note 2 - Property, Plant and Eq

Note 2 - Property, Plant and Equipment	6 Months Ended
	Oct. 27, 2018
Notes to Financial Statements
Property, Plant and Equipment Disclosure [Text Block]	2 . PROPERTY , PLANT AND EQUIPMENT Property, plant and equipment consist of the following: (In thousands) October 27, 2018 April 28, 2018 Land $ 9,835 $ 9,500 Buildings and improvements 56,991 56,947 Machinery and equipment 209,784 194,241 Total 276,610 260,688 Less accumulated depreciation (180,825 ) (174,881 ) Property, plant and equipment – net $ 95,785 $ 85,807 Depreciation expense was $3.4 $6.3 three six October 27, 2018, $3.1 $6.1 three six October 28, 2017,

Note 3 - Debt

Note 3 - Debt	6 Months Ended
	Oct. 27, 2018
Notes to Financial Statements
Debt Disclosure [Text Block]	3 . DEBT At October 27, 2018, $100 October 3, 2020 June 18, 2021 .9% one no October 27, 2018 April 28, 2018. October 27, 2018, $2.1 $97.9 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 October 27, 2018,

Note 4 - Stock-based Compensati

Note 4 - Stock-based Compensation	6 Months Ended
	Oct. 27, 2018
Notes to Financial Statements
Disclosure of Compensation Related Costs, Share-based Payments [Text Block]	4 . STOCK-BASED COMPENSATION During the six October 27, 2018, 18,500 $17.59 October 27, 2018, 328,445 $10.68 2,814,413

Note 5 - Derivative Financial I

Note 5 - Derivative Financial Instruments	6 Months Ended
	Oct. 27, 2018
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 six October 27, 2018 October 28, 2017: (In thousands) Three Months Ended Six Months Ended 2018 2017 2018 2017 Recognized in AOCI: Gain before income taxes $ 1,076 $ 5,523 $ 7,424 $ 4,556 Less income tax provision 257 2,049 1,776 1,690 Net $ 819 $ 3,474 $ 5,648 $ 2,866 Reclassified from AOCI to cost of sales: Gain before income taxes $ 4,596 $ 362 $ 13,530 $ 393 Less income tax provision 1,061 135 3,125 146 Net $ 3,535 $ 227 $ 10,405 $ 247 Net change to AOCI $ (2,716 ) $ 3,247 $ (4,757 ) $ 2,619 As of October 27, 2018, $43.0 no $101,456 12 1. As of October 27, 2018, $101,456 April 28, 2018, $6.2 not 2

Note 6 - Recently Issued Accoun

Note 6 - Recently Issued Accounting Pronouncements	6 Months Ended
	Oct. 27, 2018
Notes to Financial Statements
New Accounting Pronouncements and Changes in Accounting Principles [Text Block]	6 . RECENTLY ISSUED ACCOUNTING PRONOUNCEMENTS In May 2014, No. 2014 09, 2014 09” 2014 09 August 12, 2015, 2015 14 2014 09 one December 15, 2017. April 29, 2018 no In February 2016, No. 2016 02, 2016 02” 2016 02 March 2018, 2016 02 April 28, 2019. not In August 2017, 2017 12, 2017 12” 2017 12 April 28, 2019.

Note 7 - Legal Proceedings

Note 7 - Legal Proceedings	6 Months Ended
	Oct. 27, 2018
Notes to Financial Statements
Legal Matters and Contingencies [Text Block]	7 . LEGAL PROCEEDINGS The Company has been named a defendant in certain legal proceedings, including derivative and class action complaints. The Company believes each complaint is without merit and is pursuing vigorous defenses. The Company further believes litigation will not

Note 8 - Subsequent Event

Note 8 - Subsequent Event	6 Months Ended
	Oct. 27, 2018
Notes to Financial Statements
Subsequent Events [Text Block]	8. On November 20, 2018, $2.90 November 30, 2018. $135 January 29, 2019.

Significant Accounting Policies

Significant Accounting Policies (Policies)	6 Months Ended
	Oct. 27, 2018
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 28, 2018. 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 P er 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 October 27, 2018 $52.5 $28.3 April 28, 2018 $37.6 $23.3

Note 2 - Property, Plant and _2

Note 2 - Property, Plant and Equipment (Tables)	6 Months Ended
	Oct. 27, 2018
Notes Tables
Property, Plant and Equipment [Table Text Block]	(In thousands) October 27, 2018 April 28, 2018 Land $ 9,835 $ 9,500 Buildings and improvements 56,991 56,947 Machinery and equipment 209,784 194,241 Total 276,610 260,688 Less accumulated depreciation (180,825 ) (174,881 ) Property, plant and equipment – net $ 95,785 $ 85,807

Note 5 - Derivative Financial_2

Note 5 - Derivative Financial Instruments (Tables)	6 Months Ended
	Oct. 27, 2018
Notes Tables
Schedule of Derivatives Instruments Statements of Financial Performance and Financial Position, Location [Table Text Block]	(In thousands) Three Months Ended Six Months Ended 2018 2017 2018 2017 Recognized in AOCI: Gain before income taxes $ 1,076 $ 5,523 $ 7,424 $ 4,556 Less income tax provision 257 2,049 1,776 1,690 Net $ 819 $ 3,474 $ 5,648 $ 2,866 Reclassified from AOCI to cost of sales: Gain before income taxes $ 4,596 $ 362 $ 13,530 $ 393 Less income tax provision 1,061 135 3,125 146 Net $ 3,535 $ 227 $ 10,405 $ 247 Net change to AOCI $ (2,716 ) $ 3,247 $ (4,757 ) $ 2,619

Note 1 - Significant Accounti_2

Note 1 - Significant Accounting Policies (Details Textual) - USD ($) $ in Millions	Oct. 27, 2018	Apr. 28, 2018
Inventory, Finished Goods, Gross, Total	$ 52.5	$ 37.6
Inventory, Raw Materials, Gross, Total	$ 28.3	$ 23.3

Note 2 - Property, Plant and _3

Note 2 - Property, Plant and Equipment (Details Textual) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Oct. 27, 2018	Oct. 27, 2017	Oct. 27, 2018	Oct. 27, 2017
Depreciation, Total	$ 3.4	$ 3.1	$ 6.3	$ 6.1

Note 2 - Property, Plant and _4

Note 2 - Property, Plant and Equipment - Summary of Property, Plant and Equipment (Details) - USD ($) $ in Thousands	Oct. 27, 2018	Apr. 28, 2018
Land	$ 9,835	$ 9,500
Buildings and improvements	56,991	56,947
Machinery and equipment	209,784	194,241
Total	276,610	260,688
Less accumulated depreciation	(180,825)	(174,881)
Property, plant and equipment – net	$ 95,785	$ 85,807

Note 3 - Debt (Details Textual)

Note 3 - Debt (Details Textual) - Revolving Credit Facility [Member] - USD ($) $ in Thousands	3 Months Ended
	Oct. 27, 2018	Apr. 28, 2018
Line of Credit Facility, Maximum Borrowing Capacity	$ 100,000
Long-term Line of Credit, Total	0	$ 0
Letters of Credit Outstanding, Amount	2,100
Line of Credit Facility, Remaining Borrowing Capacity	$ 97,900
London Interbank Offered Rate (LIBOR) [Member]
Debt Instrument, Basis Spread on Variable Rate	0.90%

Note 4 - Stock-based Compensa_2

Note 4 - Stock-based Compensation (Details Textual)	3 Months Ended
	Oct. 27, 2018$ / sharesshares
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercises in Period	18,500
Share-based Compensation Arrangements by Share-based Payment Award, Options, Exercises in Period, Weighted Average Exercise Price | $ / shares	$ 17.59
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Number, Ending Balance	328,445
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Weighted Average Exercise Price, Ending Balance | $ / shares	$ 10.68
Employee Stock Option [Member]
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Available for Grant	2,814,413

Note 5 - Derivative Financial_3

Note 5 - Derivative Financial Instruments (Details Textual) - USD ($)	Oct. 27, 2018	Apr. 28, 2018
Derivative, Notional Amount	$ 43,000,000
Price Risk Cash Flow Hedge Unrealized Gain (Loss) to be Reclassified During Next 12 Months	101,456
Prepaid Expenses and Other Current Assets [Member]
Derivative Asset, Current	$ 101,456	$ 6,200,000

Note 5 - Derivative Financial_4

Note 5 - Derivative Financial Instruments - Derivatives Instruments, Statements of Financial Performance and Financial Position (Details) - USD ($) $ in Thousands	3 Months Ended			6 Months Ended
	Oct. 27, 2018	Oct. 28, 2017	Oct. 27, 2017	Oct. 27, 2018	Oct. 28, 2017	Oct. 27, 2017
Gain before income taxes	$ 1,076		$ 5,523	$ 7,424		$ 4,556
Less income tax provision	257		2,049	1,776		1,690
Net	819		3,474	5,648		2,866
Gain before income taxes	4,596		362	13,530		393
Less income tax provision	1,061		135	3,125		146
Net	3,535		227	10,405		247
Net change to AOCI	$ (2,716)	$ 3,247	$ 3,247	$ (4,756)	$ 2,619	$ 2,619

Note 8 - Subsequent Event (Deta

Note 8 - Subsequent Event (Details Textual) - Subsequent Event [Member] $ / shares in Units, $ in Millions	Nov. 20, 2018USD ($)$ / shares
Common Stock, Dividends, Per Share, Declared | $ / shares	$ 2.90
Dividends, Common Stock, Cash | $	$ 135