FORM 10-Q
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
Quarterly Report Pursuant to Section 13 or 15(d) of the
Securities Exchange Act of 1934
Quarter Ended April 1, 2007 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 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 a large accelerated
filer, an accelerated filer, or a non-accelerated filer. See definition of
"accelerated filer and large accelerated filer" in Rule 12 b-2 of the
Exchange Act. (Check one)
Large Accelerated Filer[ ] Accelerated Filer [ ] Non-accelerated filer [X]
Indicate by a 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 latest practical date:
Shares Outstanding at
April 30, 2007
Class A Common Stock, 3,667,254
$.10 par value
Class B Common Stock 1,468,462
$.10 par value
PART 1. FINANCIAL INFORMATION
ITEM 1. FINANCIAL STATEMENTS
BOWL AMERICA INCORPORATED AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF EARNINGS
(Unaudited)
Thirteen Weeks Ended Thirty-nine Weeks Ended
April 1, April 2, April 1, April 2,
2007 2006 2007 2006
_______________________ _________________________
Operating Revenues
Bowling and other $6,774,464 $6,702,057 $17,812,729 $16,630,891
Food, beverage and
merchandise sales 2,665,164 2,649,269 7,045,961 6,652,641
Insurance recovery 176,000 - 176,000 -
_________ _________ __________ __________
9,615,628 9,351,326 25,034,690 23,283,532
Operating Expenses
Compensation and benefits 3,660,196 3,490,032 10,635,504 9,942,778
Cost of bowling and other 1,939,063 1,839,786 5,476,448 5,226,841
Cost of food, beverage and
merchandise sales 747,243 789,694 2,067,064 2,059,482
Depreciation and
amortization 474,361 417,457 1,429,188 1,180,440
General and administrative 249,200 297,373 704,324 650,869
_________ _________ __________ __________
7,070,063 6,834,342 20,312,528 19,060,410
Operating Income 2,545,565 2,516,984 4,722,162 4,223,122
Interest and dividend
income 216,219 180,236 638,628 482,556
_________ _________ __________ __________
Earnings before provision
for income taxes 2,761,784 2,697,220 5,360,790 4,705,678
Provision for income taxes 983,500 998,000 1,890,000 1,688,000
_________ _________ __________ __________
Net Earnings $1,778,284 $1,699,220 $ 3,470,790 $ 3,017,678
========= ========= ========= =========
Earnings per share-basic &
diluted $.35 $.33 $.68 $.59
Weighted average shares
outstanding 5,136,524 5,136,925 5,136,760 5,136,993
Dividends paid $744,843 $719,178 $2,183,173 $2,157,532
Per share, Class A $.145 $.14 $.425 $.42
Per share, Class B $.145 $.14 $.425 $.42
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE EARNINGS
Net Earnings $1,778,284 $1,699,220 $3,470,790 $3,017,678
Other comprehensive
earnings-net of tax
Unrealized gain (loss) on
available for sale
securities 235,380 309,267 780,392 220,251
Less: reclassification
adjustment for loss
included in net income - - 2,373 -
_________ _________ _________ _________
Comprehensive earnings $2,013,664 $2,008,487 $ 4,253,555 $3,237,929
========= ========= ========= =========
The operating results for the thirteen (13) and thirty-nine (39) week
periods ended April 1, 2007 are not necessarily indicative of results
to be expected for the year.
See notes to condensed consolidated financial statements.
BOWL AMERICA INCORPORATED AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
April 1, 2007 July 2, 2006
________________ _____________
(Unaudited)
ASSETS
Current Assets
Cash and cash equivalents $ 2,667,597 $ 1,055,687
Short-term investments 10,838,757 7,990,636
Inventories 599,432 625,467
Prepaid expenses and other 969,820 1,046,908
Income taxes refundable - 172,873
Current deferred income taxes 46,910 46,910
__________ __________
Total Current Assets 15,122,516 10,938,481
Land, Buildings and Equipment
less accumulated depreciation of
$31,558,590 and $30,376,171 26,174,124 27,053,704
Other Assets
Marketable equity securities(Note 2) 5,704,226 4,540,061
Cash surrender value-life insurance 477,878 505,664
Other long-term assets 96,680 92,475
__________ __________
Total Other Assets 6,278,784 5,138,200
__________ __________
TOTAL ASSETS $47,575,424 $43,130,385
========== ==========
LIABILITIES AND STOCKHOLDERS' EQUITY
Current Liabilities
Accounts payable $ 676,516 $ 910,550
Accrued expenses 875,617 1,214,780
Dividends payable 744,679 719,165
Income taxes payable 140,849 -
Other current liabilities 2,756,949 395,919
__________ __________
Total Current Liabilities 5,194,610 3,240,414
Long-term Deferred Compensation 66,221 66,221
Noncurrent Deferred Income Taxes 3,195,317 2,734,796
__________ __________
TOTAL LIABILITIES 8,456,148 6,041,431
__________ __________
Stockholders' Equity
Preferred stock,
par value $10 a share: Authorized
and unissued 2,000,000 shares
Common stock,
par value $.10 per share
Authorized 10,000,000 shares
Class A issued and outstanding -
3,667,254 and 3,668,430 shares 366,725 366,843
Class B issued and outstanding -
1,468,462 146,846 146,846
Additional paid-in capital 7,478,876 7,480,615
Accumulated other comprehensive
earnings-Unrealized gain on
available-for-sale securities,
net of tax 3,123,704 2,338,565
Retained earnings 28,003,125 26,756,085
__________ __________
TOTAL STOCKHOLDERS' EQUITY $39,119,276 $37,088,954
__________ __________
TOTAL LIABILITIES AND STOCKHOLDERS'
EQUITY $47,575,424 $43,130,385
========== ==========
<FN>
See notes to condensed consolidated financial statements.
BOWL AMERICA INCORPORATED
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
FOR THE THIRTY-NINE WEEKS ENDED APRIL 1, 2007 AND APRIL 2, 2006
(Unaudited)
April 1, April 2,
2007 2006
Cash Flows From Operating Activities:
Net earnings $3,470,790 $3,017,678
Adjustments to reconcile net
earnings to net cash provided
by operating activities
Depreciation and amortization 1,429,188 1,180,440
Loss on sale of available-for-sale
securities 3,612 -
Changes in assets and liabilities
Decrease (increase) in inventories 26,035 (16,778)
Decrease (increase) in prepaid
expenses & other 77,088 (82,871)
Decrease in income taxes refundable 172,873 -
(Increase) decrease in other
long-term assets (4,205) 57,527
Decrease in accounts payable (234,034) (54,870)
Decrease in accrued expenses (339,163) (448,940)
Increase in income taxes payable 140,849 273,179
Increase in other current liabilities 2,361,031 2,315,612
_________ _________
Net cash provided by operating activities $7,104,064 $6,240,977
_________ _________
Cash flows from investing activities
Expenditures for land,buildings,equip (549,608) (5,127,000)
Net (purchases) sales of short-term
investments (2,789,185) 1,628,972
Proceeds from sale of marketable
securities 18,946 -
Decrease in cash surrender value 27,786 -
_________ _________
Net cash used in investing activities (3,292,061) (3,498,028)
_________ _________
Cash flows from financing activities
Payment of cash dividends (2,183,173) (2,157,532)
Purchase of Class A common stock (16,920) (1,214)
_________ _________
Net cash used in financing activities (2,200,093) (2,158,746)
_________ _________
Net Increase in Cash and Equivalents 1,611,910 584,203
Cash and Equivalents, Beginning of Period 1,055,687 1,707,385
_________ _________
Cash and Equivalents, End of Period $2,667,597 $2,291,588
========= =========
Supplemental Disclosures of Cash Flow Information
Cash paid during the period for
Income taxes $1,575,700 $1,414,821
Non-cash Investing and Financing Activities:
Settlement of employee stock loan by
acquisition of employee-owned stock - $2,845
Repayment of employee loans by acquisiton
of employee-owned common stock - $8,257
<FN>
See notes to condensed consolidated financial statements.
BOWL AMERICA INCORPORATED AND SUBSIDIARIES
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
For the Thirty-nine Weeks Ended
April 1, 2007
(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 2, 2006
has been derived from the Company's July 2, 2006 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 2, 2006.
2. Marketable Equity Securities
Marketable equity securities are carried at fair value in accordance
with the provisions of SFAS No. 115. At April 1, 2007, the fair value of
these securities was $5,704,226, with an original cost of $734,489, resulting
in an unrealized gain of $4,969,737. The telecommunications stocks included
in the portfolio as of April 1, 2007 were:
82,112 shares of AT&T 9,969 shares of Qwest Communications
220 shares of Agere 40,000 shares of Sprint
3,946 shares of Alltel 18,784 shares of Verizon
669 shares of Avaya 11,865 shares of Vodafone
2,000 shares of Embarq 4,079 shares of Windstram
939 shares of Idearc
3. Commitments and Contingencies
The Company's purchase commitments at April 1, 2007 are for materials,
supplies, services and equipment as part of the normal course of business.
4. Employee Benefit Plans
The Company has two defined contribution plans with Company contributions
determined by the Board of Directors. The Company has no defined benefit
plan or other postretirement plan.
5. Reclassifications
Certain previous period amounts have been reclassified to conform with current
period presentation.
ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL
CONDITION AND RESULTS OF OPERATION
LIQUIDITY AND CAPITAL RESOURCES
Short-term investments consisting mainly of U.S. Treasury Bills and Notes, and
cash totaled $13,506,000 at the end of the third quarter of fiscal 2007, or
$4,460,000 higher than at the beginning of the fiscal year and $2,515,000
higher than at the beginning of the third quarter. The increases came primarily
from operations, including a new bowling center that opened in January 2006,
and league prize fund deposits. The increases also reflect the seasonal nature
of the business, which is strongest during cold weather months.
During the nine-month month period ended April 1, 2007, the Company expended
approximately $550,000 for the purchase of entertainment and restaurant
equipment. The Company is actively seeking property for additional locations.
The Company has made no application for third party funding as cash and cash
flow are sufficient to finance all currently contemplated purchases and to
meet short term-commitments. The table below summarizes these obligations as
of April 1, 2007.
The Company's holdings of marketable equity securities, primarily consisting of
telecommunications stocks, are another potential source of expansion capital.
These securities are carried at their fair value on the last day of the
quarter. For the three-month period ended April 1, 2007, the market value
increased by $374,000 to approximately $5,704,000.
Contractual Total Less Than 1-3 3-5 More Than
obligations 1 Year Years Years 5 Years
Operating lease
obligations $876,613 $272,460 $237,486 $176,000 $190,667
Purchase
obligations -
Total $876,613 $272,460 $237,486 $176,000 $190,667
Current liabilities increase during the first three quarters of the fiscal year
as leagues deposit prize fund monies with the Company throughout the league
season. These funds are returned to the leagues at the end of the bowling
season, generally in the fourth quarter. At April 1, 2007 approximately
$2,347,000 in league deposits were included in the current liabilities
category.
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 March 20, 2007, the Board of Directors declared a cash dividend of $.145
per share on its Class A and Class B stock to holders of record on April 25,
2007, payable May 16, 2007. Per share dividends have increased for 35
consecutive years.
RESULTS OF OPERATIONS
The Company opened a new bowling center west of Richmond, Virginia in January
2006 and temporarily closed an existing bowling center in Falls Church,
Virginia in February 2007 when its roof was damaged by an ice storm. The
center remains closed for repairs, currently in progress, and engineering
studies that are continuing. The date of reopening remains uncertain. These
events are the most important influences on revenues and expenses covered in
this report. Management has not completed its analysis of expected insurance
recovery, but the Company believes it will recover at least $176,000 for the
period February 19, 2007 through April 1, 2007.
Net earnings of $1,778,284 and $1,699,220 for the quarters ended April 1, 2007,
and April 2, 2006, resulted in per share earnings of $.35 and $.33 for the
thirteen-week periods, respectively. For the current thirty-nine week period
net earnings were $3,470,790 or $.68 per share compared to $3,017,678 or $.59
per share for the comparable period a year ago.
Total operating revenues increased $264,000 or 3% in the current year quarter
ended April 1, 2007, and $755,000 or 9% in the comparable period ended April 2,
2006. For the nine-month periods operating revenues were up $1,751,000 in the
current year and $1,676,000 in the prior year, an 8% increase in both periods.
Operating revenues from bowling and other showed increases of $72,000 or 1%
and $1,182,000 or 7% in the current quarter and nine-month periods,
respectively. Increases of $514,000 and $1,182,000 resulted in 8% hikes in
both the quarter and year-to-date periods ended April 2, 2006.
Food, beverage and merchandise sales were up $16,000 or 1% in the current year
quarter and up $393,000 or 6% in the nine-month period, versus increases in the
prior year of $241,000 or 10% and $489,000 or 8% for the quarter and year-to-
date, respectively.
Operating expenses were up $236,000 or 3% and $1,252,000 or 7% in the current
three-month and nine-month periods, respectively, versus increases of $758,000
or 12% and $1,498,000 or 8% in the three and nine-month periods last year when
pre-opening expenses for Bowl America Short Pump contributed to the current
quarter and year-to-date costs.
Employee compensation and benefits were up $170,000 or 5% in the current three-
month period and up $693,000 or 7% in the nine-month period. In the prior
fiscal year this category showed increases of $270,000 or 8% and $660,000 or
7% for the comparable periods, respectively. The Company has two employee
benefit plans, a profit sharing plan and an employee stock ownership plan,
both of which are defined contribution plans.
Cost of food, beverage and merchandise sales decreased $42,000 or 5% in the
quarter and were flat in the nine-month period.
Cost of bowling and other services increased $249,000 or 5% in the nine-month
period ended April 1, 2007 and increased $604,000 or 13% in the comparable
period last year. Maintenance and repair costs were up $15,000 or 2% over the
prior year increase of $188,000 or 37% in the nine-month period ended April 2,
2006, due, in part, to major plumbing related repairs in both years.
Advertising costs during the current thirty-nine week period decreased $75,000
or 14% versus an increase of $51,000 or 10% in the prior year comparable
period that included advertising for the new location. Utility costs for
the quarter were up $11,000 or 3% and $49,000 or 5% for the nine-month period
ended April 1, 2007, respectively versus an increase of $47,000 or 15% and
$148,000 or 16%, respectively, for the comparable periods last year. Bowling
supplies and services costs were up 28% for the nine-month period compared to
a 7% increase in the prior year nine-month period.
Rent expense was flat in the current year-to-date period and was down 10% in
the prior year period primarily due to lower common area maintenance fees.
Casualty insurance expense decreased 12% through the nine-month period ended
April 1, 2007, compared to a 10% increase in the nine-month period a year ago.
Depreciation and amortization expense increased 8% in the current year-to-date
period, reflecting depreciation and amortization expense for the new location.
Interest and dividend income increased 20% in the quarter and 32% in the nine-
month period ended April 1, 2007, as a result of higher investments, interest
rates and dividends.
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 $10,549,000 and $9,559,000 at April 1, 2007 and April 2,
2006, 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 April 1, 2007, 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 April 1, 2007. 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 April 1, 2007, 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
April 1, 2007
PART II - OTHER INFORMATION
Item 6 - Exhibits
(a) Exhibits
(furnished herein)
31.1 Certification of Chief Executive Officer
31.2 Certification of Chief Financial Officer
32 Written Statement of the Chief Executive Officer and Chief
Financial Officer Pursuant to 18 U.S.C. 1350
20 Press release issued May 15, 2007
Pursuant to the requirement of the Securities Exchange 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
May 15, 2007 Leslie H. Goldberg
Date President
May 15, 2007 Cheryl A. Dragoo
Date Controller
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 quarterly 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)) 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) Evaluated the effectivness 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
c) 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 the internal control over financial reporting,
to the registrant's auditors and the audit committee of the 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 control 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: May 15, 2007 Leslie H. Goldberg
Chief Executive Officer
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 quarterly 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)) 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) Evaluated the effectivness 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
c) 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 the internal control over financial reporting,
to the registrant's auditors and the audit committee of the 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 control 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: May 15, 2007 Cheryl A. Dragoo
Chief Financial Officer
Exhibit 32
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 quarter ended April 1,
2007 (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: May 15, 2007
Exhibit 20
Exhibit 20 to Form 10-Q Press Release issued May 15, 2007
For Immediate Release May 15, 2007
BOWL AMERICA REPORTS THIRD QUARTER EARNINGS
Bowl America Incorporated today reported earnings per share for its third
quarter ended April 1, 2007, increased to $.35 from $.33 in the prior year
comparable quarter. Earnings per share for the nine-month periods were $.68
and $.59 for the current and prior years, respectively.
Current period results include an adjustment for expected insurance recovery
for the temporary closure of one bowling center midway through the quarter due
to roof damage. Fourth quarter earnings, even with insurance reimbursement,
will be negatively affected as the location remains closed while engineering
studies and repairs, currently underway, are made. However, it is expected
that a strong tournament schedule in the quarter will help to mitigate the
impact.
The $.145 quarterly dividend being paid tomorrow will make this the 35th
consecutive year of increased dividends per share. Bowl America Class A
Common Stock trades on the American Stock Exchange with the symbol BWLA.
The Company's S.E.C. Form 10-Q is available at the Company's web site
www.bowlamericainc.com.
***
BOWL AMERICA INCORPORATED
Results of Operations
(Unaudited)
Thirteen Thirteen Thirty-nine Thirty-nine
Weeks Ended Weeks Ended Weeks Ended Weeks Ended
04/01/07 04/02/06 04/01/07 04/02/06
Operating Revenues
Bowling and other $6,774,464 $6,702,057 $17,812,729 $16,630,891
Food,beverage and
merchandise sales 2,665,164 2,649,269 7,045,961 6,652,641
Insurance recovery 176,000 - 176,000 -
_________ _________ __________ __________
9,615,628 9,351,326 25,034,690 23,283,532
Operating Expenses
excluding deprec-
iation and amorti-
zation 6,595,702 6,416,885 18,883,340 17,879,970
Depreciation and
amortization 474,361 417,457 1,429,188 1,180,440
Interest & dividend
income 216,219 180,236 638,628 482,556
Earnings before taxes 2,761,784 2,697,220 5,360,790 4,705,678
Net Earnings $1,778,284 $1,699,220 $ 3,470,790 $ 3,017,678
Weighted average
shares outstanding 5,136,524 5,136,925 5,136,760 5,136,993
EARNINGS PER SHARE .35 .33 .68 .59
***
SUMMARY OF FINANCIAL POSITION
(Unaudited)
Dollars in Thousands
04/01/07 04/02/06
ASSETS
Total current assets including cash and
short-term investments of $13,506 and $11,879 $ 15,122 $ 13,088
Property and investments 32,453 32,614
______ ______
TOTAL ASSETS $ 47,575 $ 45,702
LIABILITIES AND STOCKHOLDERS' EQUITY
Total current liabilities $ 5,195 $ 5,550
Other liabilities 3,261 2,889
Stockholders' equity 39,119 37,263
______ ______
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY $ 47,575 $ 45,702