FORM 10-Q
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
Quarterly Report Under Section 13 or 15(d)
of the Securities Exchange Act of 1934
QUARTER ENDED: OCTOBER 2, 2005 COMMISSION FILE NUMBER: 0-1830
BOWL AMERICA INCORPORATED
(Exact name of registrant as specified in its charter)
MARYLAND 54-0646173
(State of Incorporation) (I.R.S.Employer Identification No)
6446 Edsall Road, Alexandria, Virginia 22312
(Address of principal executive offices)(Zip Code)
(703) 941-6300
(Registrant's telephone number including area code)
Indicate by a check mark whether the registrant (1) has filed all reports
required to be filed by Section 13 or 15(d) of the Securities Exchange Act of
1934 during the preceding 12 months (or for such shorter period that the
registrant was required to file such reports), and (2) has been subject to
such filing requirements for the past 90 days.
Yes X No___
Indicate by check mark whether the registrant is an accelerated filer (as
defined in Exchange Act Rule 12 b-2). Yes __ No X
Indicate by check mark whether the registrant is a shell company (as defined
by Rule 12b-2 of the Exchange Act) Yes__ No X
Indicate the number of shares outstanding of each of the issuer's
classes of common stock, as of the last practicable date.
Shares Outstanding at
October 30, 2005
Class A Common Stock,
$.10 par value 3,668,518
Class B Common Stock,
$.10 par value 1,468,462
PART I FINANCIAL INFORMATION
ITEM 1. FINANCIAL STATEMENTS
BOWL AMERICA INCORPORATED AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF EARNINGS
(Unaudited)
Thirteen Weeks Ended
October 2, September 26,
2005 2004
Operating Revenues:
Bowling and other $4,561,506 $4,222,753
Food, beverage and merchandise sales 1,815,096 1,677,331
_________ _________
6,376,602 5,900,084
Operating Expenses:
Employee compensation and benefits 3,185,029 2,962,691
Cost of bowling and other services 1,723,665 1,475,184
Cost of food, beverage and merchandise sales 580,851 523,564
Depreciation and amortization 376,326 400,633
General and administrative 216,595 203,271
_________ _________
6,082,466 5,565,343
Operating Income 294,136 334,741
Interest and dividend income 156,351 104,003
_________ _________
Earnings before provision for income taxes 450,487 438,744
Provision for Income Taxes 152,000 147,900
_________ _________
Net Earnings $ 298,487 $ 290,844
========= =========
Earnings per share-basic and diluted $ .06 $.06
Weighted average shares outstanding 5,137,076 5,137,773
Dividends paid $ 719,177 $ 693,600
Per share, dividends paid, Class A $.14 $.135
Per share, dividends paid, Class B $.14 $.135
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE EARNINGS
(Unaudited)
Net Earnings $ 298,487 $ 290,844
Other comprehensive earnings, net of tax
Unrealized gain (loss) on available-for
-sale securities (44,651) 271,921
_________ ________
Comprehensive earnings $ 253,836 $ 562,765
========= ========
The operating results for the thirteen (13) week period ending October 2,
2005 are not necessarily indicative of results to be expected for the year.
See notes to condensed consolidated financial information.
BOWL AMERICA INCORPORATED AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
(Unaudited)
As of
October 2, July 3,
2005 2005
ASSETS
CURRENT ASSETS:
Cash and cash equivalents $ 2,618,808 $ 1,707,385
Short-term investments 8,516,179 11,273,191
Inventories 772,635 626,452
Prepaid expenses and other 388,837 491,647
Income taxes refundable 40,467 132,467
__________ __________
TOTAL CURRENT ASSETS 12,336,926 14,231,142
LAND, BUILDINGS & EQUIPMENT
Net of accumulated depreciation of
$29,409,224 and $29,056,847 24,826,913 23,440,265
OTHER ASSETS:
Marketable equity securities 4,160,049 4,208,421
Cash surrender value-life insurance 518,462 516,248
Other 87,180 152,922
__________ __________
TOTAL OTHER ASSETS 4,765,691 4,877,591
TOTAL ASSETS $41,929,530 $42,548,998
========== ==========
LIABILITIES AND STOCKHOLDERS' EQUITY
CURRENT LIABILITIES:
Accounts payable $ 917,175 $ 1,130,017
Accrued expenses 688,725 1,127,639
Dividends payable 719,177 719,177
Other current liabilities 904,986 372,932
Current deferred income taxes 247,936 247,936
__________ __________
TOTAL CURRENT LIABILITIES 3,477,999 3,597,701
LONG-TERM DEFERRED COMPENSATION 71,475 71,475
NONCURRENT DEFERRED INCOME TAXES 2,661,970 2,688,160
__________ __________
TOTAL LIABILITIES 6,211,444 6,357,336
__________ __________
COMMITMENTS AND CONTINGENCIES (Note 3)
STOCKHOLDERS' EQUITY
Preferred stock, par value $10 a share:
Authorized and unissued, 2,000,000 shares - -
Common stock, par value $.10 a share:
Authorized, 10,000,000 shares
Class A issued and outstanding
3,668,518 and 3,669,311 shares 366,852 366,932
Class B issued and outstanding
1,468,462 shares 146,846 146,846
Additional paid-in capital 7,480,745 7,479,072
Accumulated other comprehensive earnings-
Unrealized gain on available-for-sale
securities, net of tax 2,150,063 2,194,714
Retained earnings 25,573,580 26,004,098
__________ __________
TOTAL STOCKHOLDERS'EQUITY 35,718,086 36,191,662
__________ __________
TOTAL LIABILITIES AND STOCKHOLDERS'EQUITY $41,929,530 $42,548,998
========== ==========
See notes to condensed consolidated financial statements.
BOWL AMERICA INCORPORATED AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited)
Thirteen Weeks Ended
October 2, September 26,
2005 2004
CASH FLOWS FROM OPERATING ACTIVITIES
Net earnings $ 298,487 $ 290,844
Adjustments to reconcile net earnings
to net cash provided by
operating activities:
Depreciation and amortization 376,326 400,633
Changes in assets and liabilities
(Increase) decrease in inventories (146,183) 8,346
Decrease (increase) in prepaid & other 94,575 (55,612)
Decrease in income taxes refundable 92,000 -
Increase in income taxes payable - 2,017
Decrease in other long-term assets 63,528 47,306
Decrease in accounts payable (212,842) (108,923)
Decrease increase in accrued expenses (438,914) (157,608)
Increase in other current liabilities 532,054 426,437
_________ _________
Net cash provided by
operating activities 659,031 853,440
_________ _________
Cash flows from investing activities
Expenditures for land, buildings and equip(1,762,974) (239,196)
Net sales & maturities of short-term
investments 2,734,543 1,188,431
_________ _________
Net cash provided by investing activities 971,569 949,235
_________ _________
Cash flows from financing activities
Payment of cash dividends (719,177) (693,600)
_________ _________
Net cash used in financing activities (719,177) (693,600)
_________ _________
Net Increase in Cash and Equivalents 911,423 1,109,075
_________ _________
Cash and Equivalents, Beginning of quarter 1,707,385 1,320,643
_________ _________
Cash and Equivalents, End of quarter $2,618,808 $2,429,718
========= =========
Supplemental Disclosures of Cash Flow Information
Cash Paid During the Quarter for
Income taxes $ 60,000 $150,000
Non-cash Investing and Financing Activities:
Settlement of employee stock loan by
acquisition of common stock $2,845 -
Repayment of employee loans by acquisition
of common stock $8,257 -
See notes to condensed consolidated financial information.
BOWL AMERICA INCORPORATED AND SUBSIDIARIES
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
For the Thirteen Weeks Ended
October 2, 2005
(Unaudited)
1. Basis for Presentation
The accompanying unaudited condensed consolidated financial statements of
Bowl America Incorporated and subsidiaries (the "Company"), have been prepared
pursuant to the rules and regulations of the Securities and Exchange Commission.
The condensed consolidated balance sheet as of July 3, 2005 has been derived
from the Company's July 3, 2005 audited financial statements. Certain
information and note disclosures normally included in the annual financial
statements, prepared in accordance with accounting principles generally
accepted in the United States of America, have been condensed or omitted
pursuant to those rules and regulations, although the Company believes that
the disclosures made are adequate to make the information presented not
misleading.
In the opinion of management, the accompanying unaudited condensed
consolidated financial statements reflect all adjustments and reclassifications
(all of which are of a normal, recurring nature) that are necessary for the
fair presentation for the periods presented. It is suggested that these
condensed consolidated financial statements be read in conjunction with the
consolidated financial statements and notes thereto included in the Company's
latest annual report to the Securities and Exchange Commission on Form 10-K
for the year ended July 3, 2005.
2. Marketable Equity Securities
Marketable equity securities, available for sale, are carried at fair
value in accordance with the provisions of SFAS No. 115. At October 2, 2005,
the fair value of these securities was $4,160,049, with an original cost of
$757,054, resulting in an unrealized gain of $3,402,995.
The telecommunications stocks included in the portfolio as of October 2,
2005 were:
220 shares of Agere
3,946 shares of Alltel
669 shares of Avaya
27,572 shares of Bell South
8,028 shares of Lucent Technologies
9,969 shares of Qwest Communications
45,580 shares of SBC
40,000 shares of Sprint
18,784 shares of Verizon
13,560 shares of Vodafone/AirTouch
3. Commitments and Contingencies
At October 2, 2005, contracts relating to the construction and equipping
of Bowl America Short Pump in Richmond, Virginia, totaled approximately
$4,770,000, of which approximately $2,572,000 had been paid.
In September 2004, the Company signed a contract for approximately $770,000
for site preparation relating to the building, to be paid as work is completed.
Revisions to the contract through October 2, 2005, increased the contract
amount to $1,152,000, of which $567,000 has been paid.
In February 2005, the Company signed a contract for the purchase of bowling
equipment for the new location totaling approximately $379,000. Delivery and
installation is expected in the second quarter of fiscal 2006.
During the quarter ended March 2005, the Company signed a contract for the
construction of the building shell for approximately $1,526,000. Additional
requests and revisions have increased the contract amount, at October 2, 2005,
to approximately $3,037,000, of which approximately $2,005,000 has been paid.
In July 2005 the Company signed a purchase order for $140,000 for the
purchase of point-of-sale systems to be installed in the first quarter of
fiscal 2006. All systems have been installed and full payment was made on this
contract prior to October 2, 2005.
In July 2005 the Company placed purchase orders totaling $438,000 for
bowling equipment including pins, expected to be in place in the second
quarter of fiscal 2006. Approximately $214,000 for pins had been paid through
October 2, 2005 and payment is due in full ten days after acceptance of the
working equipment.
In August 2005, the Company signed a purchase order for the purchase
restaurant point-of-sale cash systems for approximately $102,000, all of which
had been paid prior to October 2, 2005. Installation of these systems is
expected to be completed in the second quarter of fiscal 2006.
4. Reclassifications
Certain previous year amounts have been reclassified to conform with
current year presentation.
ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND
RESULTS OF OPERATIONS
LIQUIDITY AND CAPITAL RESOURCES
Short-term investments, consisting mainly of U.S. Treasury Bills and Notes, and
cash totaled $11,135,000 at the end of the first quarter of fiscal 2006 or
$1,845,000 lower than at the beginning of the quarter. The resulting decrease
in working capital from $10,633,000 at July 3, 2005, to $8,859,000 at October 2,
2005, was primarily due to the Company's investment in our new location.
In the three-month period ended October 2, 2005, the Company expended $256,000
for purchase of equipment and approximately $1,460,000 relating to the
construction of our new bowling center in Henrico County, Virginia. The table
below includes purchase obligations for the site preparation, building and
equipment for that location, Bowl America Short Pump, of approximately
$2,198,000, and for remaining bowling pin purchases of approximately $22,000.
See Note 3 of the Notes to Condensed Consolidated Financial Statements for
the period ended October 2, 2005 for more detail on these obligations.
The Company is actively seeking property for additional locations. Cash and
cash flow are sufficient to finance all currently contemplated purchases and
construction. The Company has also maintained its fiscal year end 2005
position in marketable equity securities, primarily telecommunications stocks,
as a further source of expansion capital.
These marketable securities are carried at their fair value on the last day of
the quarter. For the three-month period ended October 2, 2005, the market
value decreased by $48,000 to approximately $4,160,000.
- ------------------------------------------------------------------------------
Contractual Total Less Than 1-3 3-5 More Than
obligations 1 Year Years Years 5 Years
______________________________________________________________________________
Operating lease
obligations $1,486,251 $ 276,761 $553,522 $380,491 $275,477
Purchase
obligations $2,220,000 $2,220,000
______________________________________________________________________________
Total $3,706,251 $2,496,761 $553,522 $380,491 $275,477
==============================================================================
While no factors calling for a change in the dividend rate are apparent, the
Board of Directors decides the amount and timing of any dividend at its
quarterly meeting based on its appraisal of the state of the business and its
estimate of future opportunities.
On September 29, 2005, the Board of Directors declared a cash dividend of $.14
per share on its Class A and Class B stock to holders of record on October 26,
2005, payable November 16, 2005.
RESULTS OF OPERATIONS
Eighteen centers were in operation in both the current year and prior year
first quarters. Net earnings were $298,487 in the quarter ended October 2,
2005 and $290,844 in the quarter ended September 26, 2004, or $.06 per share
for the first quarters of both fiscal 2006 and 2005.
Operating revenues increased 8% or $476,000 in the fiscal year 2006 first
quarter versus a decrease of 4% or $245,000 in the prior year comparable
three-month period. Bowling and other revenue increased 8% or $339,000 in the
current year fiscal quarter versus a decline of 2% or $102,000 in the prior
fiscal year quarter. The current year quarter included one more week of
league bowling than the quarter ended September 26, 2004; however the fourth
quarter of fiscal 2006 will have one fewer week of league bowling and thirteen
weeks of business, one fewer week than the fiscal year 2005 fourth quarter.
An increase in open play traffic and a higher average game rate in the current
year first quarter also contributed to favorable revenue comparison. During
the quarter ended September 26, 2004, hurricanes Charlie, Frances and Jeanne
interrupted business at our Florida locations. The 2005 hurricanes Katrina
and Wilma had little impact on these locations.
Food, beverage and merchandise sales were up 8% or $138,000 in the current
three-month period due to the increased traffic and down 8% or $142,000 in
the comparable prior year period. Cost of sales increased in response to the
higher sales.
Operating expenses excluding depreciation and amortization were up 10% or
$541,000 in the current three-month period and down 6% or $352,000 in the
comparable period last year. Employee compensation and benefits were up 7%
in the current quarter and down 7% in the prior year quarter.
Cost of bowling and other services increased 17% or $248,000 in the first
quarter of fiscal 2006 versus a decrease of 3% or $45,000 in the quarter
ended September 26, 2004. Advertising and promotion expense increased 44% or
$61,000 in the quarter ended October 2, 2005 and 21% or $24,000 in the prior
year comparable quarter. Maintenance repair expense was up 48% or $80,000 in
the current year quarter. The prior year comparable quarter showed a decrease
of 21% or $16,000 as the changeover to all plastic lanes eliminated the cost
of resurfacing. Supplies and services expenses increased 8% for the current
year three-month period and 2% in last year's three-month period. Utility
costs were up 9% and 4% in the current year and prior year quarters,
respectively.
Rent expense decreased 8% in the current year quarter and was flat in the
prior year comparable period. Insurance expense excluding health insurance
was up 12% in the current year quarter versus a decrease of 2% in last year's
comparable quarter.
Depreciation and amortization expense decreased 6% in the current year period
and increased 1% in the comparable period last year.
Interest and dividend income increased 50% or $52,000 from the prior year
period due to higher interest rates on investments.
CRITICAL ACCOUNTING POLICIES
We have identified accounting for marketable investment securities under SFAS
115 ("Accounting for Certain Investments in Debt and Equity Securities") as a
critical accounting policy due to the significance of the amounts included in
our balance sheet under the captions of Short-term investments and Marketable
equity securities. The Company exercises judgment in determining the
classification of its investment securities as available-for-sale and in
determining their fair value. The Company records these investments at their
fair value with the unrealized gain or loss recorded in accumulated other
comprehensive income, a component of stockholders' equity, net of deferred
taxes. Additionally, from time to time the Company must assess whether
write-downs are necessary for other than temporary declines in value.
We have identified accounting for the impairment of long-lived assets under
SFAS 144 "Accounting for the Impairment or Disposal of Long-Lived Assets" as a
critical accounting policy due to the significance of the amounts included in
our balance sheet under the caption of Land, Buildings and Equipment. The
Company reviews long-lived assets whenever events or changes indicate that the
carrying amount of an asset may not be recoverable. In making such evaluations,
the Company compares the expected future cash flows to the carrying amount of
the assets. An impairment loss equal to the difference between the assets'
fair value and carrying value is recognized when the estimated future cash
flows are less than the carrying amount.
ITEM 3. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK
Interest Rate Risk. Our short-term investments and certain cash equivalents
are subject to interest rate risk. We manage this risk by maintaining an
investment portfolio of available-for-sale instruments with high credit
quality and relatively short average maturities. The fair value of marketable
debt securities held was $8,516,000 and $10,528,000 at October 2, 2005 and
September 26, 2004 respectively. The fair value of certain fixed rate debt
securities will change depending on movements in interest rates. Declines in
interest rates will affect our interest income. Based on our portfolio of debt
securities at October 2, 2005, a 10% decline in the average yield would have
no material impact on annual interest income.
ITEM 4. CONTROLS AND PROCEDURES
The Company's Chief Executive Officer and Chief Financial Officer have
concluded that the Company's disclosure controls and procedures are effective
based on their evaluation of such controls and procedures as of October 2, 2005.
There was no change in the Company's internal control over financial reporting
identified in connection with the evaluation that occurred during the quarter
ended October 2, 2005, that materially affected, or is reasonably likely to
materially affect, the Company's internal control over financial reporting.
BOWL AMERICA INCORPORATED AND SUBSIDIARIES
S.E.C. FORM 10-Q
October 2, 2005
PART II - OTHER INFORMATION
Item 6 - Exhibits
(a) Exhibits
20 Press release issued November 15, 2005 (furnished herewith)
31.1 Certification of Chief Executive Officer Pursuant to Section 302 of the
Sarbanes-Oxley Act
31.2 Certification of Chief Financial Officer Pursuant to Section 302 of the
Sarbanes-Oxley Act
32 Written Statement of the Chief Executive Officer and Chief Financial
Officer Pursuant to 18 U.S.C. 1350
Pursuant to the requirements of the Securities Act of 1934, the Registrant
has duly caused this report to be signed on its behalf by the undersigned
thereunto duly authorized.
Bowl America Incorporated
(Registrant)
Date: November 15, 2005 By: Leslie H. Goldberg
Leslie H. Goldberg, President
Date: November 15, 2005 By: Cheryl A. Dragoo
Cheryl A. Dragoo, Controller
EX-31.1
Exhibit 31.1 to Form 10-Q
Certification of Chief Executive Officer
Pursuant to Section 302 of the Sarbanes-Oxley Act and Rule 13a-14(a) Or
15d-14(a) under the Securities Exchange Act of 1934
I, Leslie H. Goldberg, certify that:
1. I have reviewed this Quarterly Report on Form 10-Q of Bowl America
Incorporated;
2. Based on my knowledge, this report does not contain any untrue statement
of a material fact or omit to state a material fact necessary to make the
statements made, in light of the circumstances under which such statements
were made, not misleading with respect to the period covered by this
report;
3. Based on my knowledge, the financial statements, and other financial
information included in this report, fairly present in all material
respects the financial condition, results of operations and cash flows of
the registrant as of, and for, the periods presented in this report;
4. The registrant's other certifying officer and I are responsible for
establishing and maintaining disclosure controls and procedures (as defined
in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over
financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f))
for the registrant and have:
a) Designed such disclosure controls and procedures, or caused such
disclosure controls and procedures to be designed under our supervision, to
ensure that material information relating to the registrant, including its
consolidated subsidiaries, is made known to us by others within those
entities, particularly during the period in which this report is being
prepared;
b) Designed such internal control over financial reporting, or caused
such internal control over financial reporting to be designed under our
supervision, to provide reasonable assurance regarding the reliability of
financial reporting and the preparation of financial statements for external
purposes in accordance with generally accepted accounting principles;
c) Evaluated the effectiveness of the registrant's disclosure controls
and procedures and presented in this report our conclusions about the
effectiveness of the disclosure controls and procedures, as of the end of
the period covered by this report based on such evaluation; and
d) Disclosed in this report any change in the registrant's internal
control over financial reporting that occurred during the registrant's most
recent fiscal quarter that has materially affected, or is reasonably likely
to materially affect, the registrant's internal control over financial
reporting: and
5. The registrant's other certifying officer and I have disclosed, based on
our most recent evaluation of internal control over financial reporting, to
the registrant's auditors and the audit committee of registrant's board of
directors (or persons performing the equivalent functions):
a) All significant deficiencies and material weaknesses in the design or
operation of internal controls over financial reporting which are
reasonably likely to adversely affect the registrant's ability to record,
process, summarize and report financial information; and
b) Any fraud, whether or not material, that involves management or other
employees who have a significant role in the registrant's internal control
over financial reporting.
Date: November 15, 2005 Leslie H Goldberg
Chief Executive Officer
Exhibit 31.2
Exhibit 31.2 to Form 10-Q
Certification of Chief Financial Officer
Pursuant to Section 302 of the Sarbanes-Oxley Act and Rule 13a-14(a) Or
15d-14(a) under the Securities Exchange Act of 1934
I, Cheryl A. Dragoo, certify that:
1. I have reviewed this Quarterly Report on Form 10-Q of Bowl America
Incorporated;
2. Based on my knowledge, this report does not contain any untrue statement
of a material fact or omit to state a material fact necessary to make the
statements made, in light of the circumstances under which such statements
were made, not misleading with respect to the period covered by this
report;
3. Based on my knowledge, the financial statements, and other financial
information included in this report, fairly present in all material
respects the financial condition, results of operations and cash flows of
the registrant as of, and for, the periods presented in this report;
4. The registrant's other certifying officer and I are responsible for
establishing and maintaining disclosure controls and procedures (as defined
in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over
financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f))
for the registrant and have:
a) Designed such disclosure controls and procedures, or caused such
disclosure controls and procedures to be designed under our supervision, to
ensure that material information relating to the registrant, including its
consolidated subsidiaries, is made known to us by others within those
entities, particularly during the period in which this report is being
prepared;
b) Designed such internal control over financial reporting, or caused
such internal control over financial reporting to be designed under our
supervision, to provide reasonable assurance regarding the reliability of
financial reporting and the preparation of financial statements for external
purposes in accordance with generally accepted accounting principles;
c) Evaluated the effectiveness of the registrant's disclosure controls
and procedures and presented in this report our conclusions about the
effectiveness of the disclosure controls and procedures, as of the end of
the period covered by this report based on such evaluation; and
d) Disclosed in this report any change in the registrant's internal
control over financial reporting that occurred during the registrant's most
recent fiscal quarter that has materially affected, or is reasonably likely
to materially affect, the registrant's internal control over financial
reporting: and
5. The registrant's other certifying officer and I have disclosed, based on
our most recent evaluation of internal control over financial reporting, to
the registrant's auditors and the audit committee of registrant's board of
directors (or persons performing the equivalent functions):
a) All significant deficiencies and material weaknesses in the design or
operation of internal controls over financial reporting which are
reasonably likely to adversely affect the registrant's ability to record,
process, summarize and report financial information; and
b) Any fraud, whether or not material, that involves management or other
employees who have a significant role in the registrant's internal control
over financial reporting.
Date: November 15, 2005 Cheryl A. Dragoo
Chief Financial Officer
Exhibit 32
Exhibit 32 to Form 10-Q
Written Statement of the Chief Executive Officer and Chief Financial
Officer
Pursuant to 18 U.S.C. 1350
Solely for the purposes of complying with 18 U.S.C. 1350, as adopted
pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, we, the
undersigned Chief Executive Officer and Chief Financial Officer of Bowl
America Incorporated (the "Company"), hereby certify, based on our
knowledge, that the Quarterly Report on Form 10-Q of the Company for the
period ended October 2, 2005, (the "Report") fully complies with the
requirements of Section 13(a) of the Securities Act of 1934 and that
information contained in the Report fairly presents, in all material
respects, the financial condition and results of operations of the Company.
Leslie H. Goldberg
Chief Executive Officer
Cheryl A. Dragoo
Chief Financial Officer
Date: November 15, 2005
Exhibit 20
Exhibit 20 to Form 10-Q
Press Release Issued November 15, 2005
For Immediate Release November 15, 2005
BOWL AMERICA REPORTS FIRST QUARTER EARNINGS
Bowl America Incorporated today reported first quarter earnings per share were
$.06, unchanged from the prior year comparable period. The current year quarter
included one more week of league bowling. Increased open play over last
year's quarter also helped revenues, but these favorable factors were offset
by high expenses including advertising and promotion costs and maintenance
repairs.
The higher traffic continued into the second quarter with strong October sales,
possibly helped by rainy weather. The Company's new location, under
construction in the Richmond, Virginia area, is expected to contribute to
third and fourth quarter earnings. However, the fourth quarter comparison
will lose the advantage of a week of league bowling and the 14th week of
business reflected in fiscal 2005.
Bowl America Short Pump in Richmond, Virginia, will be the Company's 19th
bowling center. Bowl America's Class A Common Stock trades on the American
Stock Exchange under the symbol BWLA. The Company's S.E.C. Form 10-Q is
available at the Company's website www.bowlamericainc.com.
* * * *
BOWL AMERICA INCORPORATED
Results of Operations
(unaudited)
Thirteen weeks ended
October 2, September 26,
2005 2004
Revenues
Bowling and other $4,561,506 $4,222,753
Food, beverage & merchandise sales 1,815,096 1,677,331
_________ _________
6,376,602 5,900,084
Operating expenses
excluding depreciation and amortization 5,706,140 5,164,710
Depreciation and amortization 376,326 400,633
Interest & dividend 156,351 104,003
Earnings before taxes 450,487 438,744
Net Earnings $ 298,487 $ 290,844
Weighted average shares outstanding 5,137,076 5,137,773
EARNINGS PER SHARE $.06 $.06
SUMMARY OF FINANCIAL POSITION
(unaudited)
Dollars in Thousands
10/02/05 9/26/04
ASSETS
Total current assets including cash and
short-term investments of $11,135 & $12,958 $12,337 $14,184
Property and investments 29,592 26,586
______ ______
TOTAL ASSETS $41,929 $40,770
LIABILITIES AND STOCKHOLDERS'EQUITY
Total current liabilities $ 3,478 $ 3,215
Other liabilities 2,733 2,790
Stockholders' equity 35,718 34,765
______ ______
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY $41,929 $40,770