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 08, 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
Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of The Exchange Act).
Yes ¨ No x
As of August 22, 2005 the registrant had 9,989,000 shares of common stock outstanding.
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
Part I. Financial Information
| Item 1. | a. |
CONSOLIDATED CONDENSED BALANCE SHEETS
(in thousands, except per share amounts)
| July 8, 2005 |
October 29, 2004 |
|||||||
| (Unaudited) | ||||||||
| ASSETS | ||||||||
| Current assets: |
||||||||
| Cash and cash equivalents |
$ | 12,998 | $ | 7,972 | ||||
| Accounts receivable, less allowance for doubtful accounts of $783 and $1,118, respectively, and promotional allowances of $1,685 and $2,368, respectively |
8,918 | 11,173 | ||||||
| Inventories (Note 2) |
19,975 | 22,478 | ||||||
| Prepaid expenses and other current assets |
3,559 | 2,778 | ||||||
| Total current assets |
45,450 | 44,401 | ||||||
| Property, plant and equipment, less accumulated depreciation of $50,207 and $47,120 |
14,804 | 16,755 | ||||||
| Other non-current assets |
14,142 | 13,786 | ||||||
| $ | 74,396 | $ | 74,942 | |||||
| LIABILITIES AND SHAREHOLDERS’ EQUITY | ||||||||
| Current liabilities: |
||||||||
| Accounts payable |
$ | 4,272 | $ | 3,737 | ||||
| Accrued payroll, advertising and other expenses |
7,311 | 8,015 | ||||||
| Income taxes payable |
— | 913 | ||||||
| Total current liabilities |
11,583 | 12,665 | ||||||
| Non-current liabilities |
14,758 | 13,613 | ||||||
| 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 - 9,990 and 10,002 shares |
10,047 | 10,059 | ||||||
| Capital in excess of par value |
14,420 | 14,506 | ||||||
| Retained earnings |
26,229 | 26,832 | ||||||
| Accumulated other comprehensive loss |
(2,641 | ) | (2,733 | ) | ||||
| 48,055 | 48,664 | |||||||
| $ | 74,396 | $ | 74,942 | |||||
See accompanying notes to consolidated condensed financial statements.
3
| Item 1. | b. |
CONSOLIDATED CONDENSED STATEMENTS OF OPERATIONS
(Unaudited)
| (in thousands, except per share amounts) |
(in thousands, except per share amounts) |
|||||||||||||||
| 12 weeks ended July 8, 2005 |
12 weeks ended July 9, 2004 |
36 weeks ended July 8, 2005 |
36 weeks ended July 9, 2004 |
|||||||||||||
| Net sales |
$ | 27,656 | $ | 29,756 | $ | 88,961 | $ | 95,619 | ||||||||
| Cost of products sold, excluding depreciation |
17,241 | 19,655 | 57,672 | 62,880 | ||||||||||||
| Selling, general and administrative expenses |
9,321 | 10,096 | 29,503 | 31,272 | ||||||||||||
| Depreciation |
1,028 | 1,010 | 3,085 | 3,030 | ||||||||||||
| 27,590 | 30,761 | 90,260 | 97,182 | |||||||||||||
| Income (loss) before taxes |
66 | (1,005 | ) | (1,299 | ) | (1,563 | ) | |||||||||
| Income tax benefit |
(177 | ) | (382 | ) | (696 | ) | (594 | ) | ||||||||
| Net income (loss) |
$ | 243 | ($623 | ) | ($603 | ) | ($969 | ) | ||||||||
| Basic and diluted income (loss) per share |
$ | .03 | ($.06 | ) | ($.06 | ) | ($.10 | ) | ||||||||
| Basic and diluted shares computed |
9,994 | 10,054 | 9,998 | 10,179 | ||||||||||||
| Cash dividends paid per share |
$ | .00 | $ | .00 | $ | .00 | $ | .05 | ||||||||
| Item 1. | c. |
CONSOLIDATED CONDENSED STATEMENTS OF SHAREHOLDERS’ EQUITY AND COMPREHENSIVE INCOME (LOSS)
(Unaudited)
(in thousands, except per share amounts)
| Common Stock |
Capital in excess of par |
Retained earnings |
Accumulated other comprehensive income (loss) |
Total |
||||||||||||||||||
| Shares |
Amount |
|||||||||||||||||||||
| 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): |
||||||||||||||||||||||
| Unrealized gain on investment |
460 | 460 | ||||||||||||||||||||
| Comprehensive loss |
(509 | ) | ||||||||||||||||||||
| July 9, 2004 |
10,015 | $ | 10,072 | $ | 14,605 | $ | 25,839 | ($1,201 | ) | $ | 49,315 | |||||||||||
| October 29, 2004 |
10,002 | $ | 10,059 | $ | 14,506 | $ | 26,832 | ($2,733 | ) | $ | 48,664 | |||||||||||
| Shares repurchased |
(12 | ) | (12 | ) | (86 | ) | (98 | ) | ||||||||||||||
| Cash dividends ($.00 per share) |
— | |||||||||||||||||||||
| Net loss |
(603 | ) | (603 | ) | ||||||||||||||||||
| Other comprehensive income (loss): |
||||||||||||||||||||||
| Unrealized gain on investment |
75 | 75 | ||||||||||||||||||||
| Minimum pension liability |
17 | 17 | ||||||||||||||||||||
| Comprehensive loss |
(511 | ) | ||||||||||||||||||||
| July 8, 2005 |
9,990 | $ | 10,047 | $ | 14,420 | $ | 26,229 | ($2,641 | ) | $ | 48,055 | |||||||||||
See accompanying notes to consolidated condensed financial statements.
4
| Item 1. | d. |
CONSOLIDATED CONDENSED STATEMENTS OF CASH FLOWS
(Unaudited)
| 36 weeks ended July 8, 2005 |
36 weeks ended July 9, 2004 |
|||||||
| (in thousands) | (in thousands) | |||||||
| Cash flows from operating activities: |
||||||||
| Net loss |
($603 | ) | ($969 | ) | ||||
| Income charges not affecting cash: |
||||||||
| Depreciation |
3,085 | 3,030 | ||||||
| Provision (recovery) on losses on accounts receivable |
(192 | ) | 174 | |||||
| Effect on cash of changes in assets and liabilities: |
||||||||
| Accounts receivable, net |
2,447 | 1,857 | ||||||
| Inventories |
2,503 | (2,681 | ) | |||||
| Prepaid expenses and other current assets |
(706 | ) | (649 | ) | ||||
| Other non-current assets |
(374 | ) | 449 | |||||
| Accounts payable |
535 | (1,137 | ) | |||||
| Accrued payroll, advertising and other expenses |
(704 | ) | 1,412 | |||||
| Income taxes payable |
(913 | ) | 0 | |||||
| Non-current liabilities |
1,180 | 654 | ||||||
| Net cash provided by operating activities |
6,258 | 2,140 | ||||||
| Cash used in investing activities: |
||||||||
| Additions to property, plant and equipment |
(1,134 | ) | (2,879 | ) | ||||
| Cash used in financing activities: |
||||||||
| Shares repurchased |
(98 | ) | (1,996 | ) | ||||
| Cash dividends paid |
0 | (513 | ) | |||||