SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 10-Q
(Mark one)
| x | QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES AND EXCHANGE ACT OF 1934 |
For the quarterly period ended July 09, 2004
OR
| ¨ | TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
For the transition period from
Commission file number 0-2396
BRIDGFORD FOODS CORPORATION
(Exact name of Registrant as specified in its charter)
| California | 95-1778176 | |
(State or other jurisdiction of incorporation or organization) |
(I.R.S. Employer identification number) |
1308 N. Patt Street, Anaheim, CA 92801
(Address of principal executive offices-Zip code)
714-526-5533
(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 ¨
As of August 16, 2004 the registrant had 10,007,000 shares of common stock outstanding.
Indicate by check mark whether the registrant is an accelerated filer (as defined in Rule 12b-2 of The Exchange Act). Yes ¨ No x
Page 1 of 12 pages
BRIDGFORD FOODS CORPORATION
FORM 10-Q QUARTERLY REPORT
References to “Bridgford Foods” or the “Company” contained in this Quarterly Report on Form 10-Q refer to Bridgford Foods Corporation.
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Part I. Financial Information |
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Item 1. Financial Statements |
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a. Consolidated Condensed Balance Sheets at July 9, 2004 (unaudited) and October 31, 2003 |
3 | |
| 4 | ||
| 4 | ||
| 5 | ||
e. Notes to Consolidated Condensed Financial Statements (unaudited) |
6 | |
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations |
8 | |
Item 3. Quantitative and Qualitative Disclosures about Market Risk |
10 | |
| 10 | ||
Part II. Other Information |
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| 11 | ||
| 12 | ||
Items 1-5 of Part II. have been omitted because they are not applicable with respect to the current reporting period. |
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Page 2 of 12 pages
Part I. Financial Information
Item 1. a.
CONSOLIDATED CONDENSED BALANCE SHEETS
(in thousands, except per share amounts)
July 9 2004 |
October 31 2003 |
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| (Unaudited) | ||||||||
| ASSETS | ||||||||
Current assets: |
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Cash and cash equivalents |
$ | 8,948 | $ | 12,196 | ||||
Accounts receivable, less allowance for doubtful accounts of $1,553 and $1,429 |
10,242 | 12,273 | ||||||
Inventories (Note 2) |
20,714 | 18,033 | ||||||
Prepaid expenses and other current assets |
4,294 | 3,184 | ||||||
Total current assets |
44,198 | 45,686 | ||||||
Property, plant and equipment, less accumulated depreciation of $46,111 and $43,084 |
17,583 | 17,735 | ||||||
Other non-current assets |
12,057 | 12,506 | ||||||
| $ | 73,838 | $ | 75,927 | |||||
| LIABILITIES AND SHAREHOLDERS’ EQUITY | ||||||||
Current liabilities: |
||||||||
Accounts payable |
$ | 3,568 | $ | 4,705 | ||||
Accrued payroll and other expenses |
9,196 | 7,784 | ||||||
Total current liabilities |
12,764 | 12,489 | ||||||
Non-current liabilities |
11,759 | 11,105 | ||||||
Contingencies and commitments (Note 5) |
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Shareholders’ equity: |
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Preferred stock, without par value Authorized—1,000 shares Issued and outstanding—none |
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Common stock, $1.00 par value Authorized—20,000 shares Issued and outstanding—10,015 and 10,276 shares |
10,072 | 10,333 | ||||||
Capital in excess of par value |
14,605 | 16,340 | ||||||
Retained earnings |
25,839 | 27,321 | ||||||
Accumulated other comprehensive loss |
(1,201 | ) | (1,661 | ) | ||||
| 49,315 | 52,333 | |||||||
| $ | 73,838 | $ | 75,927 | |||||
See accompanying notes to consolidated condensed financial statements.
Page 3 of 12 pages
Item 1. b.
CONSOLIDATED CONDENSED STATEMENTS OF OPERATIONS
(Unaudited)
| (in thousands, except per share amounts) |
(in thousands, except per share amounts) |
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| 12 weeks ended |
12 weeks ended |
36 weeks ended |
36 weeks ended |
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| July 9 2004 |
July 11 2003 |
July 9 2004 |
July 11 2003 |
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Net sales |
$ | 29,756 | $ | 29,977 | $ | 95,619 | $ | 91,496 | ||||||
Cost of products sold, excluding depreciation |
19,655 | 18,482 | 62,880 | 57,564 | ||||||||||
Selling, general and administrative expenses |
10,096 | 9,839 | 31,272 | 30,366 | ||||||||||
Depreciation |
1,010 | 991 | 3,030 | 2,973 | ||||||||||
| 30,761 | 29,312 | 97,182 | 90,903 | |||||||||||
(Loss) income before taxes |
(1,005 | ) | 665 | (1,563 | ) | 593 | ||||||||
Income tax (benefit) provision |
(382 | ) | 253 | (594 | ) | 225 | ||||||||
Net (loss) income |
$ | (623 | ) | $ | 412 | $ | (969 | ) | $ | 368 | ||||
Basic (loss) Income per share |
$ | (.06 | ) | $ | .04 | $ | (.10 | ) | $ | .04 | ||||
Basic shares computed |
10,054 | 10,375 | 10,179 | 10,421 | ||||||||||
Diluted (loss) income per share |
$ | (.06 | ) | $ | .04 | $ | (.10 | ) | $ | .04 | ||||
Diluted shares computed |
10,054 | 10,375 | 10,179 | 10,421 | ||||||||||
Cash dividends paid per share |
$ | .0 | $ | .03 | $ | .05 | $ | .13 | ||||||
Item 1. c.
CONSOLIDATED CONDENSED STATEMENTS OF SHAREHOLDERS' EQUITY
(Unaudited)
(in thousands, except per share amounts)
| Common Stock |
Capital in excess of par |
Retained earnings |
Accumulated other comprehensive income (loss) |
Total |
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| Shares |
Amount |
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November 1, 2002 |
10,448 | $ | 10,505 | $ | 17,475 | $ | 27,776 | $ | (1,366 | ) | $ | 54,390 | |||||||||||
Shares repurchased |
(129 | ) | (129 | ) | (838 | ) | (967 | ) | |||||||||||||||
Cash dividends ($.13 per share) |
(1,356 | ) | (1,356 | ) | |||||||||||||||||||
Net Income |
368 | 368 | |||||||||||||||||||||
Comprehensive income |
368 | ||||||||||||||||||||||
July 11, 2003 |
10,319 | $ | 10,376 | $ | 16,637 | $ | 26,788 | $ | (1,366 | ) | $ | 52,435 | |||||||||||
October 31, 2003 |
10,276 | $ | 10,333 | $ | 16,340 | $ | 27,321 | $ | (1,661 | ) | $ | 52,333 | |||||||||||
Shares repurchased |
(261 | ) | (261 | ) | (1,735 | ) | (1,996 | ) | |||||||||||||||
Cash dividends ($.05 per share) |
(513 | ) | (513 | ) | |||||||||||||||||||
Net loss |
(969 | ) | (969 | ) | |||||||||||||||||||
Other comprehensive income (loss): |
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Unrealized gain on investment (Note 6) |
460 | 460 | |||||||||||||||||||||
Comprehensive (loss) |
(509 | ) | |||||||||||||||||||||
July 9, 2004 |
10,015 | $ | 10,072 | $ | 14,605 | $ | 25,839 | $ | (1,201 | ) | $ | 49,315 | |||||||||||
See accompanying notes to consolidated condensed financial statements.
Page 4 of 12 pages
Item 1.d.
CONSOLIDATED CONDENSED STATEMENTS OF CASH FLOWS
(Unaudited)
| 36 weeks ended |
36 weeks ended |
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July 9 2004 |
July 11 2003 |
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| (in thousands) | (in thousands) | |||||||
Cash flows from operating activities: |
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Net loss |
$ | (969 | ) | $ | 368 | |||
Income charges not affecting cash: |
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Depreciation |
3,030 | 2,973 | ||||||
Provision for losses on accounts receivable |
174 | 628 | ||||||
Effect on cash of changes in assets and liabilities: |
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Accounts receivable |
1,857 | 1,604 | ||||||
Inventories |
(2,681 | ) | 692 | |||||
Prepaid expenses and other current assets |
(649 | ) | 581 | |||||
Other non-current assets |
449 | (300 | ) | |||||
Accounts payable |
(1,137 | ) | 350 | |||||
Accrued payroll and other expenses |
1,412 | 983 | ||||||
Non-current liabilities |
654 | (286 | ) | |||||