Document And Entity Information
Document And Entity Information - shares | 9 Months Ended | |
Mar. 27, 2016 | May. 07, 2016 | |
Common Class A [Member] | ||
Entity Common Stock, Shares Outstanding (in shares) | 3,746,454 | |
Common Class B [Member] | ||
Entity Common Stock, Shares Outstanding (in shares) | 1,414,517 | |
Entity Registrant Name | BOWL AMERICA INC | |
Entity Central Index Key | 13,573 | |
Trading Symbol | bwla | |
Current Fiscal Year End Date | --07-03 | |
Entity Filer Category | Smaller Reporting Company | |
Entity Current Reporting Status | Yes | |
Entity Voluntary Filers | No | |
Entity Well-known Seasoned Issuer | No | |
Document Type | 10-Q | |
Document Period End Date | Mar. 27, 2016 | |
Document Fiscal Year Focus | 2,016 | |
Document Fiscal Period Focus | Q3 | |
Amendment Flag | false |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Earnings (Unaudited) - USD ($) | 3 Months Ended | 9 Months Ended | ||
Mar. 27, 2016 | Mar. 29, 2015 | Mar. 27, 2016 | Mar. 29, 2015 | |
Common Class A [Member] | ||||
Operating Expenses: | ||||
Per share, dividends paid (in dollars per share) | $ 0.17 | $ 0.17 | $ 0.51 | $ 0.51 |
Common Class B [Member] | ||||
Operating Expenses: | ||||
Per share, dividends paid (in dollars per share) | $ 0.17 | $ 0.17 | $ 0.51 | $ 0.51 |
Bowling and other | $ 5,236,678 | $ 5,307,071 | $ 12,876,763 | $ 12,811,824 |
Food, beverage and merchandise sales | 2,184,589 | 2,209,356 | 5,470,696 | 5,303,985 |
Total Operating Revenues | 7,421,267 | 7,516,427 | 18,347,459 | 18,115,809 |
Employee compensation and benefits | 2,764,045 | 2,844,728 | 8,247,146 | 8,340,211 |
Cost of bowling and other services | 1,558,273 | 1,658,483 | 4,516,368 | 4,665,237 |
Cost of food, beverage and merchandise sales | 607,830 | 612,349 | 1,640,210 | 1,600,975 |
Depreciation and amortization | 334,572 | 330,813 | 1,009,354 | 987,018 |
General and administrative | 300,079 | 234,963 | 763,448 | 687,389 |
Total Operating Expenses | 5,564,799 | 5,681,336 | 16,176,526 | 16,280,830 |
Operating Income | 1,856,468 | 1,835,091 | 2,170,933 | 1,834,979 |
Interest, dividend and other income | 99,620 | 117,600 | 340,280 | 374,898 |
Earnings before provision for income taxes | 1,956,088 | 1,952,691 | 2,511,213 | 2,209,877 |
Provision for income taxes | 684,600 | 683,400 | 878,900 | 773,400 |
Net Earnings | $ 1,271,488 | $ 1,269,291 | $ 1,632,313 | $ 1,436,477 |
Earnings per share-basic & diluted (in dollars per share) | $ 0.25 | $ 0.25 | $ 0.32 | $ 0.28 |
Weighted average shares outstanding (in shares) | 5,160,971 | 5,160,971 | 5,160,971 | 5,160,971 |
Dividends paid | $ 877,365 | $ 877,365 | $ 2,632,095 | $ 2,632,095 |
Condensed Consolidated Stateme3
Condensed Consolidated Statements of Comprehensive Earnings - USD ($) | 3 Months Ended | 9 Months Ended | ||
Mar. 27, 2016 | Mar. 29, 2015 | Mar. 27, 2016 | Mar. 29, 2015 | |
Net earnings | $ 1,271,488 | $ 1,269,291 | $ 1,632,313 | $ 1,436,477 |
Other comprehensive earnings- net of tax | ||||
Unrealized gain (loss) on available- for-sale securities net of tax (benefit) of $223,370 and ($41,494) for 13 weeks, and $132,025 and ($141,790) for 39 weeks | $ 362,900 | $ (67,414) | 214,494 | $ (230,362) |
Reclassification adjustment for gain included in Net Income, net of tax of $9,258 | (15,041) | |||
Comprehensive earnings | $ 1,634,388 | $ 1,201,877 | $ 1,831,766 | $ 1,206,115 |
Condensed Consolidated Stateme4
Condensed Consolidated Statements of Comprehensive Earnings (Parentheticals) - USD ($) | 3 Months Ended | 9 Months Ended | ||
Mar. 27, 2016 | Mar. 29, 2015 | Mar. 27, 2016 | Mar. 29, 2015 | |
Unrealized gain (loss) on available-for-sale securities tax | $ 223,370 | $ (41,494) | $ 132,025 | $ (141,790) |
Reclassification adjustment for gain tax | $ 9,258 |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets (Unaudited) - USD ($) | Mar. 27, 2016 | Jun. 28, 2015 |
Common Class A [Member] | ||
STOCKHOLDERS' EQUITY | ||
Common stock | $ 374,645 | $ 374,645 |
Common Class B [Member] | ||
STOCKHOLDERS' EQUITY | ||
Common stock | 141,452 | 141,452 |
Cash and cash equivalents | 4,031,670 | 778,367 |
Short-term investments | 133,795 | 133,729 |
Inventories | 485,559 | 552,889 |
Prepaid expenses and other | $ 318,284 | 488,212 |
Income taxes refundable | 51,309 | |
TOTAL CURRENT ASSETS | $ 4,969,308 | 2,004,506 |
Net of accumulated depreciation of $41,160,341 and $40,237,794 | 19,642,686 | 20,417,454 |
Marketable securities | 8,267,702 | 8,866,392 |
Cash surrender value-life insurance | 707,592 | 707,592 |
Other | 66,465 | 66,465 |
TOTAL OTHER ASSETS | 9,041,759 | 9,640,449 |
TOTAL ASSETS | 33,653,753 | 32,062,409 |
Accounts payable | 869,687 | 709,453 |
Accrued expenses | 817,970 | 1,001,754 |
Dividends payable | 877,365 | 877,365 |
Other current liabilities | 2,386,724 | $ 290,833 |
Income taxes payable | 196,565 | |
Current deferred income taxes | 9,113 | $ 9,113 |
TOTAL CURRENT LIABILITIES | 5,157,424 | 2,888,518 |
LONG-TERM DEFERRED COMPENSATION | 28,897 | 28,897 |
NONCURRENT DEFERRED INCOME TAXES | 2,293,682 | 2,170,915 |
TOTAL LIABILITIES | $ 7,480,003 | $ 5,088,330 |
COMMITMENTS AND CONTINGENCIES (Note 3) | ||
Preferred stock, par value $10 a share: Authorized and unissued, 2,000,000 shares | ||
Additional paid-in capital | $ 7,854,108 | $ 7,854,108 |
Unrealized gain on available-for-sale securities, net of tax | 2,652,341 | 2,452,888 |
Retained earnings | 15,151,204 | 16,150,986 |
TOTAL STOCKHOLDERS' EQUITY | 26,173,750 | 26,974,079 |
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY | $ 33,653,753 | $ 32,062,409 |
Condensed Consolidated Balance6
Condensed Consolidated Balance Sheets (Unaudited) (Parentheticals) - USD ($) | Mar. 27, 2016 | Jun. 28, 2015 |
Common Class A [Member] | ||
Common stock, shares issued (in shares) | 3,746,454 | 3,746,454 |
Common stock, shares outstanding (in shares) | 3,746,454 | 3,746,454 |
Common Class B [Member] | ||
Common stock, shares issued (in shares) | 1,414,517 | 1,414,517 |
Common stock, shares outstanding (in shares) | 1,414,517 | 1,414,517 |
Accumulated depreciation | $ 41,160,341 | $ 40,237,794 |
Preferred stock, par value (in dollars per share) | $ 10 | $ 10 |
Preferred stock, shares authorized (in shares) | 2,000,000 | 2,000,000 |
Common stock, par value (in dollars per share) | $ 0.10 | $ 0.10 |
Common stock, shares authorized (in shares) | 10,000,000 | 10,000,000 |
Condensed Consolidated Stateme7
Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($) | 9 Months Ended | |
Mar. 27, 2016 | Mar. 29, 2015 | |
Cash Flows From Operating Activities | ||
Net earnings | $ 1,632,313 | $ 1,436,477 |
Adjustments to reconcile net earnings to net cash provided by operating activities | ||
Depreciation and amortization | 1,009,354 | $ 987,018 |
Gain on sale of available-for-sale securities | (24,299) | |
Changes in assets and liabilities | ||
Decrease in inventories | 67,330 | $ 25,876 |
Decrease in prepaid & other | 169,928 | 331,909 |
Decrease in income taxes refundable | $ 51,309 | 298,577 |
Increase in other long-term assets | (1,300) | |
Increase (decrease) in accounts payable | $ 160,234 | (83,474) |
Decrease in accrued expenses | (183,784) | $ (274,603) |
Increase in income taxes payable | 196,565 | |
Increase in other current liabilities | 2,095,891 | $ 2,066,827 |
Net cash provided by operating activities | 5,174,841 | 4,787,307 |
Cash Flows From Investing Activities | ||
Expenditures for land, building and equipment | (234,586) | (549,747) |
Net sales & maturities (purchases) of short-term investments | (66) | $ 1,319,636 |
Proceeds from sale of available-for-sale securities | 1,000,000 | |
Purchases of marketable securities | (54,791) | $ (91,782) |
Net cash provided by investing activities | 710,557 | 678,107 |
Cash Flows From Financing Activities | ||
Payment of cash dividends | (2,632,095) | (2,632,095) |
Net cash used in financing activities | (2,632,095) | (2,632,095) |
Net increase in Cash and Equivalents | 3,253,303 | 2,833,319 |
Cash and Equivalents, Beginning of period | 778,367 | 842,114 |
Cash and Equivalents, End of period | 4,031,670 | 3,675,433 |
Supplemental Disclosures of Cash Flow Information | ||
Income taxes | $ 606,026 | $ 474,822 |
Note 1 - Basis for Presentation
Note 1 - Basis for Presentation | 9 Months Ended |
Mar. 27, 2016 | |
Notes to Financial Statements | |
Organization, Consolidation, Basis of Presentation, Business Description and Accounting Policies [Text Block] | 1. Basis for Presentation The accompanying unaudited condensed consolidated financial statements of Bowl America Incorporated and subsidiaries (the "Company"), have been prepared pursuant to the rules and regulations of the Securities and Exchange Commission. The condensed consolidated balance sheet as of June 28, 2015 has been derived from the Company's audited financial statements. Certain information and note disclosures normally included in the annual financial statements, prepared in accordance with accounting principles generally accepted in the United States of America, have been condensed or omitted pursuant to those rules and regulations, although the Company believes that the disclosures made are adequate to make the information presented not misleading. In the opinion of management, the accompanying unaudited condensed consolidated financial statements reflect all adjustments and reclassifications (all of which are of a normal, recurring nature) that are necessary for the fair presentation of the Company’s financial position and results of operations for the periods presented. These condensed consolidated financial statements should be read in conjunction with the consolidated financial statements and notes thereto included in the Company's annual report on Form 10-K for the year ended June 28, 2015. |
Note 2 - Investments
Note 2 - Investments | 9 Months Ended |
Mar. 27, 2016 | |
Notes to Financial Statements | |
Investments in Debt and Marketable Equity Securities (and Certain Trading Assets) Disclosure [Text Block] | 2. Investments The Company’s investments are categorized as available-for-sale. Short-term investments consist of certificates of deposits with maturities of generally three months to one year. Equity securities consist primarily of telecommunications stocks. Mutual funds consist of federal agency mortgage backed securities (Ginnie Mae). The fair value of the Company’s investments at March 27, 2016 and June 28, 2015 were as follows: March 27 , 201 6 Description Fair Value Cost basis Unrealized Gain Short-term investments $ 133,795 $ 133,795 $ - Equity securities $ 5,495,517 $ 1,285,759 $ 4,209,758 Mutual funds $ 2,772,185 $ 2,697,081 $ 75,104 Ju ne 28, 201 5 Description Fair Value Cost basis Unrealized Gain Short-term investments $ 133,729 $ 133,729 $ - Equity securities $ 5,190,387 $ 1,285,759 $ 3,904,628 Mutual funds $ 3,676,005 $ 3,617,991 $ 58,014 The fair values of the Company’s investments were determined as follows: March 27, 2016 Description Quoted Price for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Certificates of deposits $ - $ 133,795 $ - Equity securities 5,495,517 - - Mutual funds 2,772,185 - - Total $ 8,267,702 $ 133,795 $ - June 28, 2015 Description Quoted Price for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Certificates of deposits $ - $ 133,729 $ - Equity securities 5,190,387 - - Mutual funds 3,676,005 - - Total $ 8,866,392 $ 133,729 $ - The common stocks included in the equity securities portfolio as of March 27, 2016 were: AT&T 82,112 Manulife 2,520 DexMedia 412 NCR 774 Teradata 774 Vodafone 6,471 CenturyLink 4,398 Frontier Communications shares 4,508 Sprint 40,000 Verizon 31,904 Windstream 679 CSAL shares 815 The Mutual fund included in the table above is Vanguard GNMA Admiral Shares #536 fund. The fair value of certificates of deposits is estimated using present value techniques and comparing the values derived from those techniques to certificates with similar values. |
Note 3 - Commitments and Contin
Note 3 - Commitments and Contingencies | 9 Months Ended |
Mar. 27, 2016 | |
Notes to Financial Statements | |
Commitments and Contingencies Disclosure [Text Block] | 3. Commitments and Contingencies The Company’s purchase commitments at March 27, 2016 are for materials, supplies, services and equipment as part of the normal course of business. |
Note 4 - Employee Benefit Plans
Note 4 - Employee Benefit Plans | 9 Months Ended |
Mar. 27, 2016 | |
Notes to Financial Statements | |
Pension and Other Postretirement Benefits Disclosure [Text Block] | 4. Employee benefit plans The Company has two defined contribution plans with Company contributions determined by the Board of Directors. The Company has no defined benefit plan or other postretirement plan. |
Note 5 - New Accounting Standar
Note 5 - New Accounting Standards | 9 Months Ended |
Mar. 27, 2016 | |
Notes to Financial Statements | |
New Accounting Pronouncements and Changes in Accounting Principles [Text Block] | 5. New Accounting Standards In January 2016, the Financial Accounting Standards Board (FASB) issued guidance on equity securities that requires entities to recognize changes in unrealized gains and losses on equity securities in income in the current period unless the entity is recording the related investment under the equity method or consolidating the related entity. This amendment is effective for the Company’s fiscal year ending June 2019 with earlier adoption permitted. Management is currently assessing the impact of this standard on the Company’s financial statements. In February 2016, the FASB issued guidance on leases which requires entities to recognize right-of-use assets and lease liabilities on the balance sheet for the rights and obligations created by all leases, including operating leases, with terms of more than 12 months. The new guidance also requires additional disclosures on the amount, timing, and uncertainty of cash flows arising from leases. These disclosures include qualitative and quantitative information. This amendment is effective for the Company’s fiscal year ending June 2020 with early adoption permitted. We are in the process of evaluating the impact the adoption of this guidance will have on our consolidated financial statements and related disclosures |
Note 6 - Subsequent Events
Note 6 - Subsequent Events | 9 Months Ended |
Mar. 27, 2016 | |
Notes to Financial Statements | |
Subsequent Events [Text Block] | 6. Subsequent Events The Company has evaluated subsequent events through the time of filing these financial statements with the Securities and Exchange Commission on May 10, 2016, and has determined that no material subsequent events have occurred. |
Note 7 - Reclassifications
Note 7 - Reclassifications | 9 Months Ended |
Mar. 27, 2016 | |
Notes to Financial Statements | |
Reclassifications [Text Block] | 7. Reclassifications Certain previous year amounts have been reclassified to conform with current year presentation. |
Significant Accounting Policies
Significant Accounting Policies (Policies) | 9 Months Ended |
Mar. 27, 2016 | |
Accounting Policies [Abstract] | |
Basis of Accounting, Policy [Policy Text Block] | The accompanying unaudited condensed consolidated financial statements of Bowl America Incorporated and subsidiaries (the "Company"), have been prepared pursuant to the rules and regulations of the Securities and Exchange Commission. The condensed consolidated balance sheet as of June 28, 2015 has been derived from the Company's audited financial statements. Certain information and note disclosures normally included in the annual financial statements, prepared in accordance with accounting principles generally accepted in the United States of America, have been condensed or omitted pursuant to those rules and regulations, although the Company believes that the disclosures made are adequate to make the information presented not misleading. In the opinion of management, the accompanying unaudited condensed consolidated financial statements reflect all adjustments and reclassifications (all of which are of a normal, recurring nature) that are necessary for the fair presentation of the Company’s financial position and results of operations for the periods presented. These condensed consolidated financial statements should be read in conjunction with the consolidated financial statements and notes thereto included in the Company's annual report on Form 10-K for the year ended June 28, 2015. |
New Accounting Pronouncements, Policy [Policy Text Block] | In January 2016, the Financial Accounting Standards Board (FASB) issued guidance on equity securities that requires entities to recognize changes in unrealized gains and losses on equity securities in income in the current period unless the entity is recording the related investment under the equity method or consolidating the related entity. This amendment is effective for the Company’s fiscal year ending June 2019 with earlier adoption permitted. Management is currently assessing the impact of this standard on the Company’s financial statements. In February 2016, the FASB issued guidance on leases which requires entities to recognize right-of-use assets and lease liabilities on the balance sheet for the rights and obligations created by all leases, including operating leases, with terms of more than 12 months. The new guidance also requires additional disclosures on the amount, timing, and uncertainty of cash flows arising from leases. These disclosures include qualitative and quantitative information. This amendment is effective for the Company’s fiscal year ending June 2020 with early adoption permitted. We are in the process of evaluating the impact the adoption of this guidance will have on our consolidated financial statements and related disclosures |
Note 2 - Investments (Tables)
Note 2 - Investments (Tables) | 9 Months Ended |
Mar. 27, 2016 | |
Notes Tables | |
Available-for-sale Securities [Table Text Block] | March 27 , 201 6 Description Fair Value Cost basis Unrealized Gain Short-term investments $ 133,795 $ 133,795 $ - Equity securities $ 5,495,517 $ 1,285,759 $ 4,209,758 Mutual funds $ 2,772,185 $ 2,697,081 $ 75,104 Ju ne 28, 201 5 Description Fair Value Cost basis Unrealized Gain Short-term investments $ 133,729 $ 133,729 $ - Equity securities $ 5,190,387 $ 1,285,759 $ 3,904,628 Mutual funds $ 3,676,005 $ 3,617,991 $ 58,014 |
Fair Value, Assets Measured on Recurring Basis [Table Text Block] | March 27, 2016 Description Quoted Price for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Certificates of deposits $ - $ 133,795 $ - Equity securities 5,495,517 - - Mutual funds 2,772,185 - - Total $ 8,267,702 $ 133,795 $ - June 28, 2015 Description Quoted Price for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Certificates of deposits $ - $ 133,729 $ - Equity securities 5,190,387 - - Mutual funds 3,676,005 - - Total $ 8,866,392 $ 133,729 $ - |
Schedule Of Telecommunications Stocks Held [Table Text Block] | AT&T 82,112 Manulife 2,520 DexMedia 412 NCR 774 Teradata 774 Vodafone 6,471 CenturyLink 4,398 Frontier Communications shares 4,508 Sprint 40,000 Verizon 31,904 Windstream 679 CSAL shares 815 |
Note 2 - Investments (Details T
Note 2 - Investments (Details Textual) | 9 Months Ended |
Mar. 27, 2016 | |
Minimum [Member] | |
Short-term Investments Maturities Term | 90 days |
Maximum [Member] | |
Short-term Investments Maturities Term | 1 year |
Note 2 - Investments - Investme
Note 2 - Investments - Investments Schedule (Details) - USD ($) | Mar. 27, 2016 | Jun. 28, 2015 |
Short-term Investments [Member] | ||
Fair Value | $ 133,795 | $ 133,729 |
Cost basis | $ 133,795 | $ 133,729 |
Unrealized Gain/(loss) | ||
Equity Securities [Member] | ||
Fair Value | $ 5,495,517 | $ 5,190,387 |
Cost basis | 1,285,759 | 1,285,759 |
Unrealized Gain/(loss) | 4,209,758 | 3,904,628 |
Mutual Funds [Member] | ||
Fair Value | 2,772,185 | 3,676,005 |
Cost basis | 2,697,081 | 3,617,991 |
Unrealized Gain/(loss) | $ 75,104 | $ 58,014 |
Note 2 - Investments - Fair Val
Note 2 - Investments - Fair Value Hierarchy (Details) - USD ($) | Mar. 27, 2016 | Jun. 28, 2015 |
Certificates of Deposit [Member] | Fair Value, Inputs, Level 1 [Member] | ||
Quoted Price for Identical Assets | ||
Certificates of Deposit [Member] | Fair Value, Inputs, Level 2 [Member] | ||
Quoted Price for Identical Assets | $ 133,795 | $ 133,729 |
Equity Securities [Member] | Fair Value, Inputs, Level 1 [Member] | ||
Quoted Price for Identical Assets | $ 5,495,517 | $ 5,190,387 |
Equity Securities [Member] | Fair Value, Inputs, Level 2 [Member] | ||
Quoted Price for Identical Assets | ||
Mutual Funds [Member] | Fair Value, Inputs, Level 1 [Member] | ||
Quoted Price for Identical Assets | $ 2,772,185 | $ 3,676,005 |
Mutual Funds [Member] | Fair Value, Inputs, Level 2 [Member] | ||
Quoted Price for Identical Assets | ||
Fair Value, Inputs, Level 1 [Member] | ||
Quoted Price for Identical Assets | $ 8,267,702 | $ 8,866,392 |
Fair Value, Inputs, Level 2 [Member] | ||
Quoted Price for Identical Assets | 133,795 | 133,729 |
Quoted Price for Identical Assets | $ 8,267,702 | $ 8,866,392 |
Note 2 - Investments - Telecomm
Note 2 - Investments - Telecommunications Stocks Held (Details) | Mar. 27, 2016shares |
ATT [Member] | |
Investment (in shares) | 82,112 |
Manulife [Member] | |
Investment (in shares) | 2,520 |
DexMedia [Member] | |
Investment (in shares) | 412 |
NCR [Member] | |
Investment (in shares) | 774 |
Teradata [Member] | |
Investment (in shares) | 774 |
Vodafone [Member] | |
Investment (in shares) | 6,471 |
Century Link [Member] | |
Investment (in shares) | 4,398 |
Frontier Communications [Member] | |
Investment (in shares) | 4,508 |
Sprint [Member] | |
Investment (in shares) | 40,000 |
Verizon [Member] | |
Investment (in shares) | 31,904 |
Windstream [Member] | |
Investment (in shares) | 679 |
CSAL [Member] | |
Investment (in shares) | 815 |
Note 4 - Employee Benefit Pla21
Note 4 - Employee Benefit Plans (Details Textual) | 9 Months Ended |
Mar. 27, 2016 | |
Number of Defined Contribution Plans | 2 |