California
(State or other jurisdiction
of
incorporation or
organization)
|
95-1778176
(I.R.S. Employer
identification
number)
|
Large accelerated filer [ ] | Accelerated filer [ ] | |||
Non-accelerated filer [ ] (Do not check if smaller reporting company) | Smaller reporting company [ X ] |
Part
I. Financial Information
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||||||||||||
Item
1. Financial Statements
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Page
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|||||||||||
a.
Condensed Consolidated Balance Sheets at January 22, 2010 (unaudited) and
October 31, 2009
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3
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|||||||||||
b.
Condensed Consolidated Statements of Operations for the twelve weeks ended
January 22, 2010 and January 23, 2009 (unaudited)
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4 | |||||||||||
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c.
Condensed Consolidated Statements of Cash Flows for the twelve weeks ended
Janaury 22, 2010 and January 23, 2009 (unaudited)
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5 | |||||||||||
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|||||||||||
d.
Notes to Condensed Consolidated Financial Statements (unaudited)
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6
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Item
2. Management's Discussion and Analysis of Financial Condition
and Results of Operations
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9 | |||||||||||
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Item
3. Quantitative and Qualitative Disclosures about Market Risk
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15
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Item
4T. Controls and Procedures
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15
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Part
II. Other Information
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Item
1A. Risk Factors
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17
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Item
2. Unregistered Sales of Equity Securities and Use of
Proceeds
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17
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Item
6. Exhibits
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18
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Signatures
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19
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ASSETS
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January
22,
2010
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October
30,
2009
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||||||
(Unaudited)
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||||||||
Current
assets:
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||||||||
Cash
and cash equivalents
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$ | 15,065 | $ | 13,911 | ||||
Accounts
receivable, less allowance for doubtful accounts of $362
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||||||||
and
$404, respectively, and promotional allowances of $2,080
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||||||||
and
$1,962, respectively
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8,616 | 9,718 | ||||||
Inventories
(Note 2)
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14,473 | 15,595 | ||||||
Prepaid
expenses and other current assets
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609 | 789 | ||||||
Total
current assets
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38,763 | 40,013 | ||||||
Property,
plant and equipment, less
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||||||||
accumulated
depreciation of $55,719
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||||||||
and
$55,362, respectively
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8,142 | 8,300 | ||||||
Other
non-current assets
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10,731 | 10,586 | ||||||
$ | 57,636 | $ | 58,899 | |||||
LIABILITIES AND SHAREHOLDERS'
EQUITY
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||||||||
Current
liabilities:
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||||||||
Accounts
payable
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$ | 3,193 | $ | 4,227 | ||||
Accrued
payroll, advertising and other expenses
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8,601 | 8,987 | ||||||
Total
current liabilities
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11,794 | 13,214 | ||||||
Non-current
liabilities
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13,087 | 13,262 | ||||||
Total
liabilities
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24,881 | 26,476 | ||||||
Commitments
and Contingencies (Note 3)
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||||||||
Shareholders'
equity:
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||||||||
Preferred
stock, without par value
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||||||||
Authorized
- 1,000 shares
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||||||||
Issued
and outstanding - none
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- | - | ||||||
Common
stock, $1.00 par value
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||||||||
Authorized
- 20,000 shares
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||||||||
Issued
and outstanding - 9,339 and 9,355 shares
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9,396 | 9,412 | ||||||
Capital
in excess of par value
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10,517 | 10,646 | ||||||
Retained
earnings
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21,562 | 21,085 | ||||||
Accumulated
other comprehensive loss
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(8,720 | ) | (8,720 | ) | ||||
32,755 | 32,423 | |||||||
$ | 57,636 | $ | 58,899 |
12 weeks ended | ||||||||
January 22,
2010
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January
23,
2009
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Net
sales
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$ | 29,248 | $ | 31,523 | ||||
Cost
of products sold
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17,077 | 19,835 | ||||||
Gross
margin
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12,171 | 11,688 | ||||||
Selling,
general and administrative expenses
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10,411 | 10,207 | ||||||
Income
before taxes
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1,760 | 1,481 | ||||||
Income
tax provision
|
350 | - | ||||||
Net
income
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$ | 1,410 | $ | 1,481 | ||||
Basic
and diluted earnings per share
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$ | 0.15 | $ | 0.16 | ||||
Basic
and diluted shares computed
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9,344 | 9,434 | ||||||
Cash
dividends paid per share
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$ | 0.10 | $ | 0.00 |
12
weeks ended
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||||||||
January
22,
2010
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January
23,
2009
|
|||||||
Cash
flows from operating activities:
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||||||||
Net
income
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$ | 1,410 | $ | 1,481 | ||||
Income
or charges not affecting cash and cash equivalents:
|
||||||||
Depreciation
|
559 | 714 | ||||||
(Recovery) provision on losses on accounts
receivable
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(31 | ) | 25 | |||||
(Gain)
loss on sale of property, plant and equipment
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(3 | ) | 4 | |||||
Effect
on cash and cash equivalents of changes in operating assets and
liabilities:
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||||||||
Accounts
receivable
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1,133 | (231 | ) | |||||
Inventories
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1,122 | 3,068 | ||||||
Prepaid
expenses and other current assets
|
180 | (274 | ) | |||||
Other
non-current assets
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(145 | ) | 240 | |||||
Accounts
payable
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(1,034 | ) | 5 | |||||
Accrued
payroll, advertising and other expenses
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(386 | ) | (303 | ) | ||||
Non-current
liabilities
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(175 | ) | (148 | ) | ||||
Net
cash provided by operating activities
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2,630 | 4,581 | ||||||
Cash
used in investing activities:
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||||||||
Proceeds
from sale of property, plant and equipment
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3 | 8 | ||||||
Additions
to property, plant and equipment
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(401 | ) | (465 | ) | ||||
Net
cash used in investing activities
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(398 | ) | (457 | ) | ||||
Cash
used in financing activities:
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||||||||
Shares
repurchased
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(145 | ) | (3 | ) | ||||
Cash
dividends paid
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(933 | ) | - | |||||
Net
cash used in financing activities
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(1,078 | ) | (3 | ) | ||||
Net
increase in cash and cash equivalents
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1,154 | 4,121 | ||||||
Cash
and cash equivalents at beginning of period
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13,911 | 6,092 | ||||||
Cash
and cash equivalents at end of period
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$ | 15,065 | $ | 10,213 | ||||
Cash
paid for income taxes
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$ | 268 | $ | 0 |
January
22,
2010
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October
30,
2009
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(unaudited) | ||||||||
Meat,
ingredients
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||||||||
and
supplies
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$ | 3,813 | $ | 4,488 | ||||
Work
in progress
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1,729 | 1,647 | ||||||
Finished
goods
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8,931 | 9,460 | ||||||
$ | 14,473 | $ | 15,595 |
Refrigerated
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||||||||||||||||||||
and
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||||||||||||||||||||
Twelve
Weeks Ended
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Frozen
Food
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Snack
Food
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||||||||||||||||||
January
22, 2010
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Products
|
Products
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Other
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Elimination
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Totals
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Sales
to external customers
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$ | 12,227 | $ | 17,021 | $ | - | $ | - | $ | 29,248 | ||||||||||
Intersegment
sales
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- | 248 | - | 248 | - | |||||||||||||||
Net
sales
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12,227 | 17,269 | - | 248 | 29,248 | |||||||||||||||
Cost
of products sold
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7,584 | 9,741 | - | 248 | 17,077 | |||||||||||||||
Gross
margin
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4,643 | 7,528 | - | - | 12,171 | |||||||||||||||
Selling,
general and administrative expenses
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3,728 | 6,644 | 39 | - | 10,411 | |||||||||||||||
Income
before taxes
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915 | 884 | (39 | ) | - | 1,760 | ||||||||||||||
Income
tax provision
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179 | 171 | - | - | 350 | |||||||||||||||
Net
income
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$ | 736 | $ | 713 | $ | (39 | ) | $ | - | $ | 1,410 | |||||||||
Total
assets
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$ | 10,160 | $ | 21,420 | $ | 26,056 | $ | - | $ | 57,636 | ||||||||||
Additions
to property, plant and equipment
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$ | 130 | $ | 283 | $ | (12 | ) | $ | - | $ | 401 |
Refrigerated
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||||||||||||||||||||
and
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||||||||||||||||||||
Twelve
Weeks Ended
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Frozen
Food
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Snack
Food
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||||||||||||||||||
January
23, 2009
|
Products
|
Products
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Other
|
Elimination
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Totals
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|||||||||||||||
Sales
to external customers
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$ | 14,114 | $ | 17,409 | $ | - | $ | - | $ | 31,523 | ||||||||||
Intersegment
sales
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- | 170 | - | 170 | - | |||||||||||||||
Net
sales
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14,114 | 17,579 | - | 170 | 31,523 | |||||||||||||||
Cost
of products sold
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8,322 | 11,683 | - | 170 | 19,835 | |||||||||||||||
Gross
margin
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5,792 | 5,896 | - | - | 11,688 | |||||||||||||||
Selling,
general and administrative expenses
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3,842 | 6,325 | 40 | - | 10,207 | |||||||||||||||
Income
(loss) before taxes
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1,950 | (429 | ) | (40 | ) | - | 1,481 | |||||||||||||
Income
tax provision (benefit)
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- | - | - | - | - | |||||||||||||||
Net
income (loss)
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$ | 1,950 | $ | (429 | ) | $ | (40 | ) | $ | - | $ | 1,481 | ||||||||
Total
assets
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$ | 10,983 | $ | 21,125 | $ | 20,837 | $ | - | $ | 52,945 | ||||||||||
Additions
to property, plant and equipment
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$ | 302 | $ | 115 | $ | 48 | $ | - | $ | 465 |
Level
1
|
Level
2
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Level
3
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Total
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|||||||||||||
Money
market funds
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$ | 6,039 | $ | - | $ | - | $ | 6,039 | ||||||||
Total
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$ | 6,039 | $ | - | $ | - | $ | 6,039 |
Impact
on Net Sales-Consolidated
|
%
|
|
Selling
price per pound
|
-8.6% | |
Unit
sales volume
|
3.2% | |
Promotional
activity
|
-2.0% | |
Returns
activity
|
0.2% | |
Decrease
in net sales
|
-7.2% |
Impact
on Net Sales-Frozen Food Products
|
%
|
|
Selling
price per pound
|
-4.1% | |
Unit
sales volume
|
-4.7% | |
Promotional
activity
|
-3.1% | |
Other
activity
|
-1.5% | |
Decrease
in net sales
|
-13.4% |
Impact
on Net Sales-Refrigerated and Snack Food
|
%
|
|
Selling
price per pound
|
-14.2% | |
Unit
sales volume
|
11.7% | |
Other
activity
|
0.3% | |
Decrease
in net sales
|
-2.2% |
12 Weeks Ended | Expense/Loss | |||||||||||
January
22,
2010
|
January
23,
2009
|
Increase
(Decrease)
|
||||||||||
Cash
surrender value (gain)/loss
|
$ | (147 | ) | $ | 240 | $ | (387 | ) | ||||
Fuel
|
703 | 437 | 266 | |||||||||
In-store
displays
|
174 | 12 | 162 | |||||||||
Benefits-workers’
compensation
|
322 | 215 | 107 | |||||||||
Wages
and bonus
|
4,235 | 4,148 | 87 | |||||||||
Other
SG&A
|
5,124 | 5,155 | (31 | ) | ||||||||
Total
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$ | 10,411 | $ | 10,207 | $ | 204 |
January 22,
2010
|
January 23,
2009
|
|||||||
Income
tax provision
|
$ | 350 | $ | -- | ||||
Regular
effective tax rate
|
19.9 | % | 0.0 | % |
January 22,
2010
|
January 23,
2009
|
|||||||
Net
income
|
$ | 1,410 | $ | 1,481 | ||||
Income
or charges not affecting cash and cash equivalents:
|
||||||||
Depreciation
|
559 | 714 | ||||||
(Recovery)
provision on losses on accounts receivable
|
(31 | ) | 25 | |||||
(Gain)
loss on sale of property, plant and equipment
|
(3 | ) | 4 | |||||
Changes
in operating working capital
|
695 | 2,357 | ||||||
Net
cash provided by operating activities
|
$ | 2,630 | $ | 4,581 |
January
22,
2010
|
January
23,
2009
|
|||||||
Proceeds
from sale of property, plant and equipment
|
$ | 3 | $ | 8 | ||||
Additions
to property, plant and equipment
|
(401 | ) | (465 | ) | ||||
Net
cash used in investing activities
|
$ | (398 | ) | $ | (457 | ) |
January
22,
2010
|
January
23,
2009
|
|||||||
Shares
repurchased
|
$ | (145 | ) | $ | (3 | ) | ||
Cash
dividends paid
|
$ | (933 | ) | $ | ||||
Net
cash used in financing activities
|
$ | (1,078 | ) | $ | (3 | ) |
ISSUER
PURCHASES OF EQUITY SECURITIES
|
||||||||||||||||
Period
(1)
|
Total
Number
of
Shares
Purchased
|
Average
Price
Paid
Per
Share
|
Total
Number
of
Shares
Purchased
as
Part
of
Publicly
Announced
Plans
or
Programs
(2)
|
Maximum
Number
of
Shares
that
May
Yet
Be
Purchased
Under
the
Plans
or
Programs
(2)
|
||||||||||||
October
31, 2009 – November 27, 2009
|
9,103 | $ | 9.09 | 9,103 | 388,942 | |||||||||||
November
28, 2009 – December 25, 2009
|
6,286 | $ | 9.86 | 6,286 | 382,656 | |||||||||||
December
26, 2009 – January 22, 2010
|
- | - | - | 382,656 | ||||||||||||
Total
|
15,389 | $ | 9.40 | 15,389 |
(1)
|
The
periods shown are the fiscal periods during the twelve-week quarter ended
January 22, 2010.
|
(2)
|
Repurchases
reflected in the foregoing table were made on the open
market. Our stock repurchase program was approved by the Board
of Directors in November 1999 (1,500,000 shares authorized, disclosed
in a Form 10-K filed on January 26, 2000) and was expanded in
June 2005 (500,000 additional shares authorized, disclosed in a press
release and Form 8-K filed on June 17, 2005). Under
the stock repurchase program, we are authorized, at the discretion of our
management and the Board of Directors, to purchase up to an aggregate of
2,000,000 shares of our common stock on the open market. Our
Stock Purchase Plan (“Purchase Plan”) is administered by Citigroup Global
Markets Inc. (“CGM”) for purchase of shares of our common stock in
compliance with the requirements of Rule 10b5-1 under the Exchange
Act. Commencing on October 14, 2009 and continuing through
and including October 13, 2010, CGM shall act as our exclusive agent
to purchase shares of our common stock under the Purchase
Plan. This Purchase Plan supplements any purchases of stock by
us “outside” of the Purchase Plan, which may occur from time to time, in
open market transactions pursuant to Rule 10b-18 of the Exchange Act
or in privately-negotiated transactions. As of January 22,
2010, the total maximum number of shares that may be purchased under the
Purchase Plan is 382,656 at a purchase price not to exceed $12.00 per
share at a total maximum aggregate price (exclusive of commission) of
$4,591,872.
|
|
Exhibit
No.
|
Description
|
|
31.1
|
Certification
of Chairman (Principal Executive Officer), as required by Section 302 of
the Sarbanes-Oxley Act of 2002.
|
|
31.2
|
Certification
of Chief Financial Officer (Principal Financial Officer), as required by
Section 302 of the Sarbanes-Oxley Act of
2002.
|
|
32.1
|
Certification
of Chairman (Principal Executive Officer), as required by Section 906 of
the Sarbanes-Oxley Act of 2002.
|
|
32.2
|
Certification
of Chief Financial Officer (Principal Financial Officer), as required by
Section 906 of the Sarbanes-Oxley Act of
2002.
|
BRIDGFORD FOODS CORPORATION | |||
Dated:
March 8, 2010
|
By:
|
/s/ Raymond F. Lancy | |
Raymond
F. Lancy
Chief
Financial Officer
(Duly
Authorized Officer and Principal Financial Officer)
|