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 January 21, 2005
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 ¨
Indicate by check mark whether the registrant is an accelerated filer (as defined in Rule 12b-2 of The Exchange Act). Yes ¨ No x
As of March 7, 2005 the registrant had 9,998,000 shares of common stock outstanding.
(end of cover page)
FORM 10-Q QUARTERLY REPORT
INDEX
References to “Bridgford Foods” or the “Company” contained in this Quarterly Report on Form 10-Q refer to Bridgford Foods Corporation.
Items 1-5 of Part II. have been omitted because they are not applicable with respect to the current reporting period.
2
Item 1. a.
CONSOLIDATED CONDENSED BALANCE SHEETS
(in thousands, except per share amounts)
| January 21 2005 |
October 29 2004 |
|||||||
| (Unaudited) | ||||||||
| ASSETS | ||||||||
Current assets: |
||||||||
Cash and cash equivalents |
$ | 10,494 | $ | 7,972 | ||||
Accounts receivable, less allowance for doubtful accounts of $1,015 and $1,118, respectively and promotional allowances of $2,431 and $2,368, respectively |
9,920 | 11,173 | ||||||
Inventories (Note 2) |
19,432 | 22,478 | ||||||
Prepaid expenses and other current assets |
2,992 | 2,778 | ||||||
Total current assets |
42,838 | 44,401 | ||||||
Property, plant and equipment, less accumulated depreciation of $48,153 and $47,120 |
16,068 | 16,755 | ||||||
Other non-current assets |
13,492 | 13,786 | ||||||
| $ | 72,398 | $ | 74,942 | |||||
| LIABILITIES AND SHAREHOLDERS’ EQUITY | ||||||||
Current liabilities: |
||||||||
Accounts payable |
$ | 3,937 | $ | 3,737 | ||||
Accrued payroll, advertising and other expenses |
6,622 | 8,015 | ||||||
Income taxes payable |
— | 913 | ||||||
Total current liabilities |
10,559 | 12,665 | ||||||
Non-current liabilities |
12,782 | 13,613 | ||||||
Contingencies and commitments (Note 6) |
||||||||
Shareholders’ equity: |
||||||||
Preferred stock, without par value Authorized - 1,000 shares Issued and outstanding - none |
— | — | ||||||
Common stock, $1.00 par value Authorized - 20,000 shares Issued and outstanding - 9,999 and 10,002 shares |
10,056 | 10,059 | ||||||
Capital in excess of par value |
14,488 | 14,506 | ||||||
Retained earnings |
26,636 | 26,832 | ||||||
Accumulated other comprehensive loss |
(2,123 | ) | (2,733 | ) | ||||
| 49,057 | 48,664 | |||||||
| $ | 72,398 | $ | 74,942 | |||||
See accompanying notes to consolidated condensed financial statements.
3
BRIDGFORD FOODS CORPORATION
CONSOLIDATED CONDENSED STATEMENTS OF OPERATIONS
(Unaudited)
| (in thousands, except per share amounts) |
||||||||
| 12 weeks ended | 12 weeks ended | |||||||
January 21 2005 |
January 23 2004 |
|||||||
Net sales |
$ | 33,591 | $ | 35,322 | ||||
Cost of products sold, excluding depreciation |
22,571 | 23,866 | ||||||
Selling, general and administrative expenses |
10,308 | 10,664 | ||||||
Depreciation |
1,028 | 1,014 | ||||||
| 33,907 | 35,544 | |||||||
Loss before taxes |
(316 | ) | (222 | ) | ||||
Income tax benefit |
(120 | ) | (84 | ) | ||||
Net loss |
$ | (196 | ) | $ | (138 | ) | ||
Basic loss per share |
$ | (.02 | ) | $ | (.01 | ) | ||
Basic shares computed |
10,000 | 10,265 | ||||||
Diluted loss per share |
$ | (.02 | ) | $ | (.01 | ) | ||
Diluted shares computed |
10,000 | 10,265 | ||||||
Cash dividends paid per share |
$ | .00 | $ | .03 | ||||
CONSOLIDATED CONDENSED STATEMENTS OF SHAREHOLDERS’ EQUITY AND COMPREHENSIVE INCOME (LOSS)
(Unaudited)
(in thousands, except per share amounts)
Accumulated other comprehensive income (loss) |
|||||||||||||||||||||||
Capital in excess of par |
|||||||||||||||||||||||
| Common Stock |
Retained earnings |
||||||||||||||||||||||
| Shares |
Amount |
Total |
|||||||||||||||||||||
October 31, 2003 |
10,276 | $ | 10,333 | $ | 16,340 | $ | 27,321 | $ | (1,661 | ) | $ | 52,333 | |||||||||||
Shares repurchased |
(21 | ) | (21 | ) | (152 | ) | (173 | ) | |||||||||||||||
Cash dividends ($.03 per share) |
(308 | ) | (308 | ) | |||||||||||||||||||
Net loss |
(138 | ) | (138 | ) | |||||||||||||||||||
Comprehensive loss |
(138 | ) | |||||||||||||||||||||
January 23, 2004 |
10,255 | $ | 10,312 | $ | 16,188 | $ | 26,875 | $ | (1,661 | ) | $ | 51,714 | |||||||||||
October 29, 2004 |
10,002 | $ | 10,059 | $ | 14,506 | $ | 26,832 | $ | (2,733 | ) | $ | 48,664 | |||||||||||
Shares repurchased |
(3 | ) | (3 | ) | (18 | ) | (21 | ) | |||||||||||||||
Cash dividends ($.00 per share) |
— | ||||||||||||||||||||||
Net loss |
(196 | ) | (196 | ) | |||||||||||||||||||
Other comprehensive income (loss): |
|||||||||||||||||||||||
Unrealized gain on investment |
— | — | |||||||||||||||||||||
Minimum pension liability |
610 | 610 | |||||||||||||||||||||
Comprehensive income |
414 | ||||||||||||||||||||||
January 21, 2005 |
9,999 | $ | 10,056 | $ | 14,488 | $ | 26,636 | $ | (2,123 | ) | $ | 49,057 | |||||||||||
See accompanying notes to consolidated condensed financial statements.
4
BRIDGFORD FOODS CORPORATION
CONSOLIDATED CONDENSED STATEMENTS OF CASH FLOWS
(Unaudited)
| 12 weeks ended January 21 2005 |
12 weeks ended January 23 2004 |
|||||||
| (in thousands) | (in thousands) | |||||||
Cash flows from operating activities: |
||||||||
Net loss |
$ | (196 | ) | $ | (138 | ) | ||
Income charges not affecting cash: |
||||||||
Depreciation |
1,028 | 1,014 | ||||||
Provision for losses on accounts receivable |
(117 | ) | 0 | |||||
Effect on cash of changes in assets and liabilities: |
||||||||
Accounts receivable, net |
1,370 | 1,286 | ||||||
Inventories |
3,046 | 2,211 | ||||||
Prepaid expenses and other current assets |
(214 | ) | 94 | |||||
Other non-current assets |
(97 | ) | 149 | |||||
Accounts payable |
200 | (1,289 | ) | |||||
Accrued payroll, advertising and other expenses |
(1,393 | ) | 318 | |||||
Income taxes payable |
(913 | ) | 0 | |||||
Non-current liabilities |
170 | (272 | ) | |||||
Net cash provided by operating activities |
2,884 | 3,373 | ||||||
Cash used in investing activities: |
||||||||
Additions to property, plant and equipment |
(341 | ) | ||||||