Liquidity and Capital Resources (in thousands except per share amounts)

Net cash provided by operating activities was $4,515 and $908 in fiscal years 2005 and 2004, respectively. Gross accounts receivable balances decreased $2,243 in 2005 and $1,346 in 2004. The balance in 2005 decreased due to lower overall sales levels in the fourth quarter and improved collection trends compared to the prior year. Similarly, the balance in 2004 decreased due to lower overall sales levels in the fourth quarter and improved collection trends compared to the prior year. Inventories decreased $1,154 in fiscal year 2005 due to lower fourth quarter sales of refrigerated and snack food products and a slight decline in commodity costs. The Company’s refrigerated and snack food products segment has continued development of a new major manufacturing line that was originally scheduled for completion in the fourth quarter of fiscal year 2005. This project has been delayed and the expected completion date is not known. Inventories increased $4,445 in fiscal year 2004 due to significant beef ingredient inventories being stored in anticipation of the start up of the new production line in the first half of fiscal year 2005 and higher valuations due to commodity cost increases. Accounts payable balances were consistent with the current business cycle. Accrued payroll, advertising and other expenses decreased $533 in 2005 primarily as a result of the funding pattern of self-insured workers’ compensation claims. The current portion of non-current liabilities increased $553 and decreased $699 in 2005 and 2004, respectively. The increase in 2005 was due to a higher anticipated funding of the pension liability in 2006. The decrease in 2004 related to lower incentive compensation accruals as a result of lower profitability levels and slightly lower contribution requirements for the Company’s defined benefits pension plan. Included in the current portion of non-current liabilities is $1,800 related to the anticipated contribution required in fiscal 2006. The minimum pension liability related to the Company’s defined benefit pension plan decreased to $3,458 at October 28, 2005 compared to $4,509 at October 29, 2004. The minimum liability decreased as a result of more favorable investment results and an increase in the discount rate being applied to the accumulated pension benefit obligation. The net tax effected amount of this liability is included in shareholders’ equity as an “accumulated comprehensive loss” in the Statement of Shareholders’ Equity and Other Comprehensive Income (Loss).

The Company’s capital improvement expenditures decreased $1,412 in 2005 and increased $352 in 2004 compared to the prior year. Significant projects came on-line during fiscal 2005 that were part of the projects in process of $1,795 at October 29, 2004 including equipment to expand processing capabilities at the Chicago facility. Cash and cash equivalents increased $2,383 in 2005 and decreased $4,224 in 2004. Net cash flow improved in 2005 primarily as a result of lower inventory requirements, lower expenditures for property, plant and equipment and lower income tax payments. Net cash flow decreased in 2004 primarily as a result of lower operating results, higher investments in ingredient inventories and increased capital spending. Improved collections on accounts receivable and delayed funding of the Company’s self-insured workers’ compensation program helped offset these decreases.

Working capital increased $161 in 2005 and decreased $1,461 in 2004. Working capital increased in 2005 primarily as a result of lower inventory requirements, lower expenditures for property, plant and equipment and an increase in refundable income taxes. Working capital decreased in 2004 primarily due to the repurchase of 274,000 shares of common stock in the amount of $2,108, and a slight increase in capital expenditures and payments related to incentive compensation and employee benefit plans. The Company has remained free of interest-bearing debt for nineteen consecutive years. The Company maintains a line of credit with Bank of America that expires April 30, 2006. Under the terms of this line of credit, the Company may borrow up to $2,000 at an interest rate equal to the bank’s reference rate, unless the Company elects an optional interest rate. The borrowing agreement contains various covenants, the more significant of which require the Company to maintain certain levels of shareholders’ equity and working capital. The Company was in compliance with all provisions of the agreement during the 2005 fiscal year and there were no borrowings under this line of credit during such period. Management is of the opinion that the Company’s strong financial position and its capital resources are sufficient to provide for its operating needs and capital expenditures for fiscal 2006.

Contractual Obligations (in thousands)

The Company remained free of interest bearing long-term debt for the nineteenth consecutive year and had no other long-term debt or other contractual obligations except for leases. The Company leases certain transportation equipment under operating leases. Future minimum lease payments are approximately (in thousands):

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Exhibit: 21.1 23.1 23.2 31.1 31.2 32.1 32.2