Securities and Exchange Commission
Washington, D.C. 20549
FORM 10-Q
[X] QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934
For the quarterly period ended October 31, 2002
[ ] TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934
For the transition period from __________ to ___________
Commission File Number 000-31701
BOWLIN TRAVEL CENTERS, INC.
(Exact name of registrant as specified in its charter)
NEVADA 85-0473277
(State or other jurisdiction of (IRS Employer Identification No.)
incorporation or organization)
150 LOUISIANA NE, ALBUQUERQUE, NM 87108
(Address of principal executive offices) (Zip Code)
Registrant's telephone number, including area code: 505-266-5985
Check 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 [ ]
As of December 11, 2002, 4,583,348 shares of the issuer's common stock were
outstanding.
BOWLIN TRAVEL CENTERS, INC.
INDEX
PART I. FINANCIAL INFORMATION Page No
-------
Item 1. Financial Statements
Condensed Balance Sheets as of October 31, 2002
and January 31, 2002............................................ 2
Condensed Statements of Income for the Three Months
and Nine Months Ended October 31, 2002 and 2001................. 3
Condensed Statements of Cash Flows for the Nine
Months Ended October 31, 2002 and 2001.......................... 4
Notes to the Condensed Financial Statements..................... 5
Item 2. Management's Discussion and Analysis of Financial
Condition and Results of Operations............................. 5
Item 3. Quantitative and Qualitative Disclosures About
Market Risk..................................................... 9
Item 4. Controls and Procedures......................................... 9
PART II. OTHER INFORMATION
Item 1. Legal Proceedings............................................... 10
Item 2. Changes in Securities and Use of Proceeds....................... 10
Item 3 Defaults Upon Senior Securities................................. 10
Item 4. Submission of Matters to a Vote of Security Holders............. 10
Item 5. Other Information............................................... 10
Item 6. Exhibits and Reports on Form 8-K................................ 10
Signatures...................................................... 10
1
PART I. FINANCIAL INFORMATION
ITEM 1. FINANCIAL STATEMENTS
BOWLIN TRAVEL CENTERS, INC.
CONDENSED BALANCE SHEETS
(in thousands, except share data)
October 31, January 31,
2002 2002
(Unaudited)
----------- -----------
ASSETS
Current assets:
Cash and cash equivalents $ 3,134 $ 2,671
Accounts receivable 127 267
Accounts receivable, related parties 5 3
Inventories 2,806 2,996
Prepaid expenses 282 280
Mortgages receivable, current maturities 4 4
Notes receivable 39 39
----------- -----------
Total current assets 6,397 6,260
Property & equipment, net 9,316 9,397
Intangible assets, net 250 278
Interest receivable 21 27
Mortgages receivable 338 341
Notes receivable 204 229
----------- -----------
Total assets $ 16,526 $ 16,532
=========== ===========
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable $ 1,006 $ 989
Current installments of long-term debt 637 709
Accrued liabilities 340 246
Deferred revenue 47 33
Income taxes payable 5 --
----------- -----------
Total current liabilities 2,035 1,977
Deferred income taxes 612 626
Long-term debt, less current installments 3,495 3,976
----------- -----------
Total liabilities 6,142 6,579
----------- -----------
Stockholders' equity:
Preferred stock, $0.001 par value; 1,000,000
shares authorized, none issued or outstanding
at October 31, 2002 and January 31, 2002 -- --
Common stock, $.001 par value; 10,000,000 shares
authorized, 4,583,348 issued and outstanding at
October 31, 2002 and January 31, 2002 5 5
Additional paid in capital 9,775 9,775
Retained earnings 604 173
----------- -----------
Total stockholders' equity 10,384 9,953
----------- -----------
Total liabilities and stockholders' equity $ 16,526 $ 16,532
=========== ===========
See accompanying notes to condensed financial statements.
2
BOWLIN TRAVEL CENTERS, INC.
CONDENSED STATEMENTS OF INCOME
(in thousands, except share and per share data)
Three Months Ended Nine Months Ended
-------------------------- --------------------------
October 31, October 31, October 31, October 31,
2002 2001 2002 2001
(Unaudited) (Unaudited) (Unaudited) (Unaudited)
----------- ----------- ----------- -----------
Gross sales $ 5,334 $ 5,667 $ 17,464 $ 18,664
Less discounts on sales 102 114 314 319
----------- ----------- ----------- -----------
Net sales 5,232 5,553 17,150 18,345
Cost of goods sold 3,449 3,859 11,271 12,668
----------- ----------- ----------- -----------
Gross profit 1,783 1,694 5,879 5,677
General and administrative expenses (1,546) (1,542) (4,667) (4,595)
Depreciation and amortization (183) (185) (556) (569)
----------- ----------- ----------- -----------
Operating income (loss) 54 (33) 656 513
Non-operating income (expense):
Interest income 30 31 84 109
Gain (loss) on sale of property
and equipment -- 22 (2) 24
Interest expense (56) (93) (170) (326)
Miscellaneous income -- 6 46 6
Rental income 22 21 66 67
----------- ----------- ----------- -----------
Total non-operating income
(expense) (4) (13) 24 (120)
----------- ----------- ----------- -----------
Income (loss) before income taxes 50 (46) 680 393
Income tax expense (benefit) 23 (17) 249 152
----------- ----------- ----------- -----------
Net income (loss) $ 27 $ (29) $ 431 $ 241
=========== =========== =========== ===========
Earnings (loss) per share:
Basic and diluted $ 0.01 $ (0.01) $ 0.09 $ 0.05
=========== =========== =========== ===========
Weighted average common shares
outstanding 4,583,348 4,583,348 4,583,348 4,583,348
=========== =========== =========== ===========
See accompanying notes to condensed financial statements.
3
BOWLIN TRAVEL CENTERS, INC.
CONDENSED STATEMENTS OF CASH FLOWS
(in thousands)
For the Nine Months Ended
-----------------------------
October 31, October 31,
2002 2001
(Unaudited) (Unaudited)
----------- -----------
Cash flows from operating activities:
Net income $ 431 $ 241
Adjustments to reconcile net income to
net cash provided by operating activities:
Depreciation and amortization 556 569
Amortization of loan fee 21 20
Loss (gain) on sale of property and equipment 2 (24)
Deferred income taxes (14) (28)
Changes in operating assets and liabilities, net 456 169
----------- -----------
Net cash provided by operating activities 1,452 947
----------- -----------
Cash flows from investing activities:
Proceeds from sale of assets 4 57
Purchases of property and equipment, net (474) (509)
Accrued interest receivable 6 --
Mortgages receivable, net 3 --
Notes receivable, net 25 (11)
----------- -----------
Net cash used in investing activities (436) (463)
----------- -----------
Cash flows from financing activities:
Payments on long-term debt (553) (532)
----------- -----------
Net cash used in financing activities (553) (532)
----------- -----------
Net increase in cash and cash equivalents 463 (48)
Cash and cash equivalents at beginning of period 2,671 4,043
----------- -----------
Cash and cash equivalents at end of period $ 3,134 $ 3,995
=========== ===========
See accompanying notes to condensed financial statements.
4
BOWLIN TRAVEL CENTERS, INC.
NOTES TO CONDENSED FINANCIAL STATEMENTS (UNAUDITED)
1. The condensed financial statements of Bowlin Travel Centers, Inc. (the
Company) as of and for the three months and nine months ended October 31,
2002 and 2001 are unaudited and reflect all adjustments (consisting only of
normal recurring adjustments) which are, in the opinion of management,
necessary for a fair presentation of the financial position and operating
results for the interim periods. The interim financial statements should be
read in conjunction with the financial statements and notes, together with
management's discussion and analysis of financial condition and results of
operations, contained in the Company's annual report on Form 10-K for the
fiscal year ended January 31, 2002. Results of operations for interim
periods are not necessarily indicative of results that may be expected for
the year as a whole.
ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS
OF OPERATIONS.
CERTAIN STATEMENTS CONTAINED HEREIN WITH RESPECT TO FACTORS WHICH MAY AFFECT
FUTURE EARNINGS, INCLUDING MANAGEMENT'S BELIEFS AND ASSUMPTIONS BASED ON
INFORMATION CURRENTLY AVAILABLE, ARE FORWARD-LOOKING STATEMENTS MADE PURSUANT TO
THE SAFE HARBOR PROVISIONS OF THE PRIVATE SECURITIES LITIGATION REFORM ACT OF
1995. SUCH FORWARD-LOOKING STATEMENTS THAT ARE NOT HISTORICAL FACTS INVOLVE
RISKS AND UNCERTAINTIES, AND RESULTS COULD VARY MATERIALLY FROM THE DESCRIPTIONS
CONTAINED HEREIN.
OVERVIEW
The following is a discussion of the financial condition and results of
operations of the Company as of and for the periods ended October 31, 2002 and
2001. This discussion should be read in conjunction with the Financial
Statements of the Company and the related notes included in the Company's annual
report on Form 10-K for fiscal year ended January 31, 2002.
The Company's principal business activities include the operation of
full-service travel centers and restaurants that offer brand name food and
gasoline, and a unique variety of Southwestern merchandise to the traveling
public in the Southwestern United States, primarily New Mexico.
The discussion of results of operations which follows compares such selected
operating data for the interim periods presented.
RESULTS OF OPERATIONS
The following table presents certain income and expense items derived from the
Statements of Operations for the three months and nine months ended October 31
(unaudited and amounts in thousands):
Three Months Ended Nine Months Ended
------------------ -------------------
2002 2001 2002 2001
-------- -------- -------- --------
SELECTED STATEMENT OF OPERATIONS DATA:
(in thousands, except per share data)
Gross sales $ 5,334 $ 5,667 $ 17,464 $ 18,664
======= ======== ======== ========
Net income (loss) $ 27 ($ 29) $ 431 $ 241
======= ======== ======== ========
Earnings per share $ 0.01 ($ 0.01) $ 0.09 $ 0.05
======= ======== ======== ========
5
BOWLIN TRAVEL CENTERS, INC.
COMPARISON OF THE THREE MONTHS ENDED OCTOBER 31, 2002 AND OCTOBER 31, 2001
Gross sales at the Company's travel centers decreased by 5.9% to $5.334 million
for the three months ended October 31, 2002, from $5.667 million for the three
months ended October 31, 2001. Merchandise sales increased 6.1% to $2.280
million for the three months ended October 31, 2002, from $2.148 million for the
three months ended October 31, 2001. The increase is primarily due to new sales
incentive programs in the current fiscal year as well as more efficient sales
management. Gasoline sales decreased 9.7% to $2.207 million for the three months
ended October 31, 2002, from $2.444 million for the same period in 2001. The
decrease is primarily due to price decreases for the three months ended October
31, 2002, compared to October 31, 2001 prices. Restaurant sales increased 2.0%
to $469,000 for the three months ended October 31, 2002, from $460,000 for the
three months ended October 31, 2001. The increase is due to new sales incentive
programs in the current fiscal year as well as upgrades to facilities. Wholesale
gasoline sales to independent retailers decreased 38.5% to $378,000 for the
three months ended October 31, 2002, from $615,000 for the three months ended
October 31, 2001 primarily due to price decreases for the three months ended
October 31, 2002, compared to October 31, 2001 prices.
Cost of goods sold decreased 10.6% to $3.449 million for the three months ended
October 31, 2002, from $3.859 million for the three months ended October 31,
2001. Merchandise cost of goods increased 6.2% to $975,000 for the three months
ended October 31, 2002, from $918,000 for the three months ended October 31,
2001. The increase directly corresponds to the increase in merchandise sales.
Gasoline cost of goods decreased 9.7% to $1.992 million for the three months
ended October 31, 2002, from $2.205 million for the three months ended October
31, 2001. The decrease is primarily attributable to price decreases for the
three months ended October 31, 2002, compared to October 31, 2001 prices.
Restaurant cost of goods decreased 16.7% to $115,000 for the three months ended
October 31, 2002, from $138,000 for the three months ended October 31, 2001. The
decrease is a result of more efficient management of costs. Wholesale gasoline
cost of goods decreased 38.6% to $367,000 for the three months ended October 31,
2002, from $598,000 for the three months ended October 31, 2001, primarily due
to price decreases for the three months ended October 31, 2002, compared to
October 31, 2001 prices. Cost of goods sold as a percentage of gross revenues
improved for the three months ended October 31, 2002 to 64.7%, as compared to
68.1% for the three months ended October 31, 2001.
Gross profit increased 5.3% to $1.783 million for the three months ended October
31, 2002, from $1.694 million for the three months ended October 31, 2001. The
increase is primarily attributable to improved management of cost of goods as
well as improved merchandise mix.
General and administrative expenses consist of salaries, bonuses and commissions
for travel center personnel, property costs and repairs and maintenance. General
and administrative expenses also include executive and administrative
compensation and benefits, accounting, legal and investor relations fees.
General and administrative expenses increased 0.3% to $1.546 million for the
three months ended October 31, 2002, from $1.542 million for the three months
ended October 31, 2001. The increase is primarily due to higher salaries,
bonuses and commissions for travel center personnel as a result of the new sales
incentive programs as well as higher repairs and maintenance.
Depreciation and amortization expense decreased 1.1% to $183,000 for the three
months ended October 31, 2002 from $185,000 for the three months ended October
31, 2001. The decrease is associated with certain assets becoming fully
depreciated.
6
BOWLIN TRAVEL CENTERS, INC.
The above factors contributed to an overall increase in operating income of
263.6% to $54,000 for the three months ended October 31, 2002, from a loss of
$33,000 for the three months ended October 31, 2001.
Non-operating income (expense) includes interest income, gains and/or losses
from the sale of assets, rental income and interest expense. Interest income
decreased 3.2% to $30,000 for the three months ended October 31, 2002, from
$31,000 for the three months ended October 31, 2001. The decrease is due to
lower cash balances in the current period as well as lower interest rates. There
was no loss or gain on the sale of property and equipment for the three months
ended October 31, 2002, compared to a gain on the sale of property and equipment
of $22,000 for the three months ended October 31, 2001. Rental income was
$22,000 for the three months ended October 31, 2002, compared to $21,000 for the
three months ended October 31, 2001. Interest expense decreased 39.8% to $56,000
for the three months ended October 31, 2002, from $93,000 for the three months
ended October 31, 2001. The decrease is primarily due to lower interest rates as
well as lower debt balances.
Income before income taxes increased 208.7% to $50,000 for the three months
ended October 31, 2002, compared to a loss of $46,000 for the three months ended
October 31, 2001. As a percentage of gross revenues, income before income taxes
was 0.9% for the three months ended October 31, 2002, compared to a loss of 0.8%
for the three months ended October 31, 2001.
Income tax expense increased 235.3% to $23,000 for the three months ended
October 31, 2002, compared to an income tax benefit of $17,000 for the three
months ended October 31, 2001. The increase is a result of higher pre-tax
income.
The foregoing factors contributed to net income for the three months ended
October 31, 2002 of $27,000 compared to a net loss of $29,000 for the three
months ended October 31, 2001.
COMPARISON OF THE NINE MONTHS ENDED OCTOBER 31, 2002 AND OCTOBER 31, 2001
Gross sales at the Company's travel centers decreased by 6.4% to $17.464 million
for the nine months ended October 31, 2002, from $18.664 million for the nine
months ended October 31, 2001. Merchandise sales increased 6.3% to $7.561
million for the nine months ended October 31, 2002, from $7.116 million for the
nine months ended October 31, 2001. The increase is primarily due to new sales
incentive programs in the current fiscal year as well as more efficient sales
management. Gasoline sales decreased 16.4% to $6.897 million for the nine months
ended October 31, 2002, from $8.246 million for the same period in 2001. The
decrease is primarily due to price decreases for the nine months ended October
31, 2002, compared to October 31, 2001 prices. Restaurant sales decreased 0.8%
to $1.571 million for the nine months ended October 31, 2002, from $1.584
million for the nine months ended October 31, 2001. Wholesale gasoline sales to
independent retailers decreased 16.5% to $1.435 million for the nine months
ended October 31, 2002, from $1.718 million for the nine months ended October
31, 2001. The decrease is primarily due to price decreases for the nine months
ended October 31, 2002, compared to October 31, 2001 prices.
Cost of goods sold decreased 11.0% to $11.271 million for the nine months ended
October 31, 2002, from $12.668 million for the nine months ended October 31,
2001. Merchandise cost of goods increased 5.5% to $3.217 million for the nine
months ended October 31, 2002, from $3.048 million for the nine months ended
October 31, 2001. The increase directly corresponds to the increase in
merchandise sales. Gasoline cost of goods decreased 16.9% to $6.233 million for
the nine months ended October 31, 2002, from $7.498 million for the nine months
ended October 31, 2001. The decrease is primarily due to price decreases for the
nine months ended October 31, 2002, compared to October 31, 2001 prices.
Restaurant cost of goods decreased 7.2% to $424,000 for the nine months ended
October 31, 2002, from $457,000 for the nine months ended October 31, 2001.
Wholesale gasoline cost of goods decreased 16.1% to $1.397 million for the nine
7
BOWLIN TRAVEL CENTERS, INC.
months ended October 31, 2002, from $1.665 million for the nine months ended
October 31, 2001. The decrease is primarily due to price decreases for the nine
months ended October 31, 2002, compared to October 31, 2001 prices. Cost of
goods sold as a percentage of gross revenues improved for the nine months ended
October 31, 2002 to 64.5%, as compared to 67.9% for the nine months ended
October 31, 2001.
Gross profit increased 3.6% to $5.879 million for the nine months ended October
31, 2002, from $5.677 million for the nine months ended October 31, 2001. The
increase is primarily attributable to improved management of cost of goods as
well as improved merchandise mix.
General and administrative expenses consist of salaries, bonuses and commissions
for travel center personnel, property costs and repairs and maintenance. General
and administrative expenses also include executive and administrative
compensation and benefits, accounting, legal and investor relations fees.
General and administrative expenses increased 1.6% to $4.667 million for the
nine months ended October 31, 2002, from $4.595 million for the nine months
ended October 31, 2001. The increase is primarily due to higher salaries,
bonuses and commissions for travel center personnel as a result of the new sales
incentive programs as well as higher repairs and maintenance.
Depreciation and amortization expense decreased 2.3% to $556,000 for the nine
months ended October 31, 2002 from $569,000 for the nine months ended October
31, 2001. The decrease is associated with certain assets becoming fully
depreciated.
The above factors contributed to an overall increase in operating income of
27.9% to $656,000 for the nine months ended October 31, 2002, from $513,000 for
the nine months ended October 31, 2001.
Non-operating income (expense) includes interest income, gains and/or losses
from the sale of assets, rental income and interest expense. Interest income
decreased 22.9% to $84,000 for the nine months ended October 31, 2002, from
$109,000 for the nine months ended October 31, 2001. The decrease is due to
lower cash balances in the current period as well as lower interest rates. Loss
on the sale of property and equipment was $2,000 for the nine months ended
October 31, 2002, compared to a gain on the sale of property and equipment of
$24,000 for the nine months ended October 31, 2001. Rental income decreased 1.5%
to $66,000 for the nine months ended October 31, 2002, from $67,000 for the nine
months ended October 31, 2001. Interest expense decreased 47.9% to $170,000 for
the nine months ended October 31, 2002, from $326,000 for the nine months ended
October 31, 2001. The decrease is primarily due to lower interest rates as well
as lower debt balances.
Income before income taxes increased 73.0% to $680,000 for the nine months ended
October 31, 2002, compared to income before income taxes of $393,000 for the
nine months ended October 31, 2001. As a percentage of gross revenues, income
before income taxes was 3.9% for the nine months ended October 31, 2002,
compared to 2.1% for the nine months ended October 31, 2001.
Income tax expense increased 63.8% to $249,000 for the three months ended
October 31, 2002, compared to $152,000 for the three months ended October 31,
2001 as a result of higher pre-tax income.
The foregoing factors contributed to net income for the nine months ended
October 31, 2002 of $431,000 compared to $241,000 for the nine months ended
October 31, 2001.
LIQUIDITY AND CAPITAL RESOURCES
At October 31, 2002, the Company had working capital of $4.362 million and a
current ratio of 3.1:1, compared to working capital of $4.283 million and a
8
BOWLIN TRAVEL CENTERS, INC.
current ratio of 3.2:1 as of January 31, 2002. Net cash provided by operating
activities was $1.452 million for the nine months ended October 31, 2002,
compared to $947,000 for the nine months ended October 31, 2001. Net cash
provided by operating activities in the current period is primarily attributable
to net income adjusted for depreciation and amortization expense and changes in
other operating assets and liabilities. Net cash provided by operating
activities for the nine months ended October 31, 2001 is primarily attributable
to net income adjusted for depreciation and amortization expense and changes in
other operating assets and liabilities.
Net cash used in investing activities for the nine months ended October 31, 2002
was $436,000, consisting of $474,000 which was used for purchases of property
and equipment, partially offset by notes and interest receivable. For the nine
months ended October 31, 2001, net cash used in investing activities was
$463,000, consisting of $509,000 which was used for purchases of property and
equipment, partially offset by proceeds of $57,000.
Net cash used in financing activities for the nine months ended October 31, 2002
was $553,000, which were payments on long-term debt. For the nine months ended
October 31, 2001, net cash used in financing activities was $532,000, which were
payments on long-term debt.
ITEM 3. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK.
The principal market risk to which the Company is exposed are interest rates on
the Company's debt. The Company's interest sensitive liabilities are its debt
instruments. Variable interest on the majority of the Company's debt equals
LIBOR plus an applicable margin. Because rates may increase or decrease at any
time, the Company is exposed to market risk as a result of the impact that
changes in these base rates may have on the interest rate applicable to Company
borrowings. Management does not, however, believe that any risk inherent in the
variable rate nature of its debt is likely to have a material effect on the
Company's financial position, results of operations or liquidity.
The Company has not entered into any market risk sensitive instruments for
trading purposes. Further, the Company does not currently have any derivative
instruments outstanding and has no plans to use any form of derivative
instruments to manage the Company's business in the foreseeable future.
Profit margins on gasoline sales can be adversely affected by factors beyond the
control of the Company, including supply and demand in the retail gasoline
market, price volatility and price competition from other gasoline marketers.
The availability and price of gas could have an adverse impact on general
highway traffic. The Company has not entered into any long-term fixed-price
supply agreements for gasoline. Any substantial decrease in profit margins on
gasoline sales or number of gallons sold could have a material adverse effect on
the Company's gross margins and operating income.
ITEM 4. CONTROLS AND PROCEDURES
Within the 90-day period prior to the filing of this quarterly report, an
evaluation was carried out under the supervision and with the participation of
the Company's management, including the Chief Executive Officer ("CEO") and
Chief Financial Officer ("CFO"), of the effectiveness of our disclosure controls
and procedures. Based on that evaluation, the CEO and CFO have concluded that
the Company's disclosure controls and procedures are effective to ensure that
the information required to be disclosed by the Company in this quarterly report
has been made known to them in a timely fashion. Subsequent to the date of their
evaluation, there were no significant changes in the Company's internal controls
or in other factors that could significantly affect the disclosure controls,
including any corrective actions with regard to significant deficiencies and
material weaknesses.
9
BOWLIN TRAVEL CENTERS, INC.
PART II - OTHER INFORMATION
Item 1. Legal Proceedings. None.
Item 2. Changes in Securities and Use of Proceeds. None.
Item 3. Defaults Upon Senior Securities. None.
Item 4. Submission of Matters to a Vote of Security Holders. None.
Item 5. Other Information. None.
Item 6. Exhibits and Reports on Form 8-K.
(a). 99.1 Certification pursuant to Section 906 of the Sarbanes-Oxley
Act of 2002.
(b). 99.2 Certification pursuant to Section 906 of the Sarbanes-Oxley
Act of 2002.
Signatures
Pursuant to the requirements of the Securities Exchange Act of 1934, the Company
has duly caused this report to be signed on its behalf by the undersigned
thereunto duly authorized.
Date: December 11, 2002
/s/ MICHAEL L. BOWLIN
------------------------------------------
Michael L. Bowlin, Chairman of the Board,
President and Chief Executive Officer
/s/ NINA J. PRATZ
------------------------------------------
Nina J. Pratz, Chief Financial Officer
10
BOWLIN TRAVEL CENTERS, INC.
CERTIFICATION PURSUANT TO
15 U.S.C. 78m(a) OR 78o(d)
(SECTION 302 OF THE SARBANES-OXLEY ACT OF 2002)
I, Michael L. Bowlin, certify that:
1. I have reviewed this quarterly report on Form 10-Q of Bowlin Travel
Centers, Inc.;
2. Based on my knowledge, this annual 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 annual report; and
3. Based on my knowledge, the financial statements, and other financial
information included in this annual 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 annual report.
4. The Company's other certifying officers and I are responsible for
establishing and maintaining disclosure controls and procedures (as
defined in Exchange Act Rules 13a-14 and 15d-14) for the Company and we
have:
(a) designed such disclosure controls and procedures to ensure
that material information relating to the Company, including its
consolidated subsidiaries, is made known to us by others within
those entities, particularly during the period in which this
quarterly report is being prepared;
(b) evaluated the effectiveness of the Company's disclosure
controls and procedures as of a date within 90 days prior to the
filing date of this quarterly report (the "Evaluation Date"); and
(c) presented in this quarterly report our conclusions about the
effectiveness of the disclosure controls and procedures based on
our evaluation as of the Evaluation Date;
5. The Company's other certifying officers and I have disclosed, based on
our most recent evaluation, to the Company's auditors and the audit
committee of Company's board of directors (or persons performing the
equivalent function):
(a) all significant deficiencies in the design or operation of
internal controls which could adversely affect the Company's
ability to record, process, summarize and report financial data
and have identified for the Company's auditors any material
weaknesses in internal controls; and
(b) any fraud, whether or not material, that involves management
or other employees who have a significant role in the Company's
internal controls; and
6. The Company's other certifying officers and I have indicated in this
quarterly report whether or not there were significant changes in
internal controls or in other factors that could significantly affect
internal controls subsequent to the date of our most recent evaluation,
11
BOWLIN TRAVEL CENTERS, INC.
including any corrective actions with regard to significant
deficiencies and material weaknesses.
Date: December 11, 2002
/s/ MICHAEL L. BOWLIN
-----------------------------------------
Michael L. Bowlin, Chairman of the Board,
President and Chief Executive Officer
CERTIFICATION PURSUANT TO
15 U.S.C. 78m(a) OR 78o(d)
(SECTION 302 OF THE SARBANES-OXLEY ACT OF 2002)
I, Nina J. Pratz, certify that:
1. I have reviewed this quarterly report on Form 10-Q of Bowlin Travel
Centers, Inc.;
2. Based on my knowledge, this annual 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 annual report; and
3. Based on my knowledge, the financial statements, and other financial
information included in this annual 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 annual report.
4. The Company's other certifying officers and I are responsible for
establishing and maintaining disclosure controls and procedures (as
defined in Exchange Act Rules 13a-14 and 15d-14) for the Company and we
have:
(a) designed such disclosure controls and procedures to ensure
that material information relating to the Company, including its
consolidated subsidiaries, is made known to us by others within
those entities, particularly during the period in which this
quarterly report is being prepared;
(b) evaluated the effectiveness of the Company's disclosure
controls and procedures as of a date within 90 days prior to the
filing date of this quarterly report (the "Evaluation Date"); and
(c) presented in this quarterly report our conclusions about the
effectiveness of the disclosure controls and procedures based on
our evaluation as of the Evaluation Date;
5. The Company's other certifying officers and I have disclosed, based on
our most recent evaluation, to the Company's auditors and the audit
committee of Company's board of directors (or persons performing the
equivalent function):
(a) all significant deficiencies in the design or operation of
internal controls which could adversely affect the Company's
ability to record, process, summarize and report financial data
and have identified for the Company's auditors any material
weaknesses in internal controls; and
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BOWLIN TRAVEL CENTERS, INC.
(b) any fraud, whether or not material, that involves management
or other employees who have a significant role in the Company's
internal controls; and
6. The Company's other certifying officers and I have indicated in this
quarterly report whether or not there were significant changes in
internal controls or in other factors that could significantly affect
internal controls subsequent to the date of our most recent evaluation,
including any corrective actions with regard to significant
deficiencies and material weaknesses.
Date: December 11, 2002
/s/ NINA J. PRATZ
-----------------------------------------
Nina J. Pratz, Chief Financial Officer
Bowlin Travel Centers, Inc.
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