California (State or
other jurisdiction of incorporation or organization) |
95-2782215 (I.R.S.
employer identification number) | |
5010 Eucalyptus Avenue, Chino, California (Address of principal executive offices) |
91710 (Zip
Code) |
Common Stock 3,117,688 |
Item |
Page | |||
PART I. FINANCIAL INFORMATION |
||||
1 | ||||
1 | ||||
2 | ||||
3 | ||||
4 | ||||
5 | ||||
5 | ||||
5 | ||||
5 | ||||
6 | ||||
6 | ||||
7 | ||||
8 | ||||
8 | ||||
8 | ||||
PART II. OTHER INFORMATION |
||||
9 | ||||
9 | ||||
9 | ||||
9 | ||||
9 | ||||
9 | ||||
9 | ||||
10 | ||||
10 | ||||
10 | ||||
10 |
Three Months Ended June
30, |
Six Months Ended June
30, |
||||||||||||
2002 |
2001 |
2002 |
2001 |
||||||||||
Net sales |
$ |
8,903,207 |
|
7,905,495 |
|
18,675,267 |
|
15,644,176 |
| ||||
Cost of sales |
|
7,931,036 |
|
7,237,991 |
|
16,741,882 |
|
14,062,144 |
| ||||
|
|
|
|
|
|
|
|
| |||||
Gross profit |
|
972,171 |
|
667,504 |
|
1,933,385 |
|
1,582,032 |
| ||||
Operating expenses: |
|||||||||||||
Distribution |
|
302,719 |
|
290,359 |
|
607,735 |
|
614,362 |
| ||||
General and administrative |
|
440,959 |
|
392,598 |
|
937,994 |
|
830,235 |
| ||||
|
|
|
|
|
|
|
|
| |||||
Operating income (loss) |
|
228,493 |
|
(15,453 |
) |
387,656 |
|
137,435 |
| ||||
Interest expense, net |
|
(137,949 |
) |
(174,401 |
) |
(261,715 |
) |
(368,765 |
) | ||||
Other income, net |
|
59,080 |
|
44,420 |
|
116,389 |
|
103,362 |
| ||||
|
|
|
|
|
|
|
|
| |||||
Earnings (loss) before income taxes |
|
149,624 |
|
(145,434 |
) |
242,330 |
|
(127,968 |
) | ||||
Income tax expense (benefit) |
|
56,857 |
|
(46,800 |
) |
93,857 |
|
(39,200 |
) | ||||
|
|
|
|
|
|
|
|
| |||||
Net earnings (loss) |
$ |
92,767 |
|
(98,634 |
) |
148,473 |
|
(88,768 |
) | ||||
|
|
|
|
|
|
|
|
| |||||
Earnings (loss) per share: |
|||||||||||||
Basic |
$ |
.03 |
|
(.03 |
) |
.05 |
|
(.03 |
) | ||||
|
|
|
|
|
|
|
|
| |||||
Diluted |
$ |
.03 |
|
(.03 |
) |
.05 |
|
(.03 |
) | ||||
|
|
|
|
|
|
|
|
| |||||
Shares used in computing earnings (loss) per share: |
|||||||||||||
Basic |
|
3,113,228 |
|
3,056,878 |
|
3,106,333 |
|
3,050,416 |
| ||||
|
|
|
|
|
|
|
|
| |||||
Diluted |
|
3,113,228 |
|
3,056,878 |
|
3,106,333 |
|
3,050,416 |
| ||||
|
|
|
|
|
|
|
|
|
June 30, 2002
|
December 31, 2001
| ||||
ASSETS |
|||||
Current assets: |
|||||
Cash and cash equivalents |
$ |
81,392 |
206,777 | ||
Accounts receivable, less allowance for doubtful accounts of $37,225 at 2002 and $0 at 2001 |
|
3,120,480 |
3,238,935 | ||
Inventories |
|
3,497,768 |
3,190,660 | ||
Prepaid expenses |
|
114,294 |
12,443 | ||
Deferred tax assets |
|
106,203 |
106,203 | ||
|
|
| |||
Total current assets |
|
6,920,137 |
6,755,018 | ||
|
|
| |||
Property and equipment, net |
|
15,783,095 |
16,128,662 | ||
Other assets |
|
185,031 |
181,268 | ||
Deferred tax assets, net of current |
|
142,057 |
328,884 | ||
|
|
| |||
$ |
23,030,320 |
23,393,832 | |||
|
|
| |||
LIABILITIES AND SHAREHOLDERS EQUITY |
|||||
Current liabilities: |
|||||
Line of credit |
$ |
3,600,555 |
4,000,000 | ||
Current portion of long-term debt |
|
495,285 |
495,285 | ||
Current portion of capital lease obligation |
|
113,200 |
113,200 | ||
Accounts payable |
|
1,327,428 |
1,362,058 | ||
Accrued liabilities |
|
1,350,759 |
1,229,273 | ||
Deferred tax liability |
|
46,394 |
46,394 | ||
Income taxes payable |
|
97,000 |
| ||
|
|
| |||
Total current liabilities |
|
7,030,621 |
7,246,210 | ||
|
|
| |||
Long-term debt, net of current portion |
|
6,109,589 |
6,395,906 | ||
Capital lease obligation, net of current portion |
|
403,028 |
453,628 | ||
Deferred tax liability, net of current |
|
416,802 |
416,802 | ||
Shareholders equity: |
|||||
Capital stock, no par value; authorized 10,000,000 shares; issued and outstanding 3,117,688 at 2002 and 3,089,516 at
2001 |
|
5,023,860 |
4,983,339 | ||
Retained earnings |
|
4,046,420 |
3,897,947 | ||
|
|
| |||
Total shareholders equity |
|
9,070,280 |
8,881,286 | ||
|
|
| |||
$ |
23,030,320 |
23,393,832 | |||
|
|
|
Six Months Ended June 30, |
||||||||
2002 |
2001 |
|||||||
Cash flows from operating activities: |
||||||||
Net earnings (loss) |
$ |
148,473 |
|
$ |
(88,768 |
) | ||
Adjustments to reconcile net earnings (loss) to net cash provided by (used in) operating activities: |
||||||||
Depreciation and amortization |
|
400,018 |
|
|
367,787 |
| ||
Change in allowance for doubtful accounts |
|
37,225 |
|
|
(26,000 |
) | ||
Decrease (increase) in accounts receivable |
|
81,230 |
|
|
(36,408 |
) | ||
Increase in inventories |
|
(307,108 |
) |
|
(809,016 |
) | ||
Increase in prepaid expenses |
|
(101,851 |
) |
|
(31,984 |
) | ||
Decrease in income taxes receivable |
|
|
|
|
336,597 |
| ||
Decrease (increase) in other assets |
|
(3,763 |
) |
|
186 |
| ||
Increase (decrease) in accounts payable |
|
(34,630 |
) |
|
39,418 |
| ||
Increase (decrease) in accrued liabilities |
|
121,486 |
|
|
(42,134 |
) | ||
Increase in income taxes payable |
|
97,000 |
|
|
800 |
| ||
Decrease in deferred tax assets |
|
186,827 |
|
|
|
| ||
|
|
|
|
|
| |||
Net cash provided by (used in) operating activities |
|
624,907 |
|
|
(289,522 |
) | ||
|
|
|
|
|
| |||
Cash flows from investing activities: |
||||||||
Additions to property and equipment |
|
(54,451 |
) |
|
(119,397 |
) | ||
|
|
|
|
|
| |||
Net cash used in investing activities |
|
(54,451 |
) |
|
(119,397 |
) | ||
|
|
|
|
|
| |||
Cash flows from financing activities: |
||||||||
Payments on long term debt |
|
(286,317 |
) |
|
(289,011 |
) | ||
Payments on capital lease obligation |
|
(50,600 |
) |
|
|
| ||
Proceeds from (repayments of) line of credit |
|
(399,445 |
) |
|
791,079 |
| ||
Proceeds from sale of capital stock |
|
40,521 |
|
|
48,288 |
| ||
Cash dividends paid |
|
|
|
|
(183,304 |
) | ||
|
|
|
|
|
| |||
Net cash provided by (used in) financing activities |
|
(695,841 |
) |
|
367,052 |
| ||
|
|
|
|
|
| |||
Net decrease in cash and cash equivalents |
|
(125,385 |
) |
|
(41,867 |
) | ||
Cash and cash equivalents at beginning of period |
|
206,777 |
|
|
88,585 |
| ||
|
|
|
|
|
| |||
Cash and cash equivalents at end of period |
$ |
81,392 |
|
$ |
46,718 |
| ||
|
|
|
|
|
| |||
Supplemental disclosures of cash flow information: |
||||||||
Cash paid (received) during the period for: |
||||||||
Interest |
$ |
261,715 |
|
$ |
370,423 |
| ||
Income taxes |
$ |
(101,970 |
) |
$ |
(335,797 |
) | ||
|
|
|
|
|
|
2002 |
2001 | |||
Raw materials |
$1,214,274 |
1,393,975 | ||
Work-in-process |
817,138 |
842,577 | ||
Finished goods |
1,466,356 |
954,108 | ||
|
| |||
$3,497,768 |
3,190,660 | |||
|
|
Three Months Ended June
30, |
Six Months Ended June
30, |
||||||||||||
2002 |
2001 |
2002 |
2001 |
||||||||||
Net sales to unaffiliated customers: |
|||||||||||||
Swiss American Sausage division |
$ |
7,580,949 |
|
6,731,246 |
|
15,758,546 |
|
13,144,890 |
| ||||
Royal-Angelus Macaroni division |
|
1,322,258 |
|
1,174,249 |
|
2,916,721 |
|
2,499,286 |
| ||||
|
|
|
|
|
|
|
|
| |||||
Total sales |
$ |
8,903,207 |
|
7,905,495 |
|
18,675,267 |
|
15,644,176 |
| ||||
|
|
|
|
|
|
|
|
| |||||
Operating income (loss): |
|||||||||||||
Swiss American Sausage division |
$ |
332,871 |
|
160,766 |
|
540,969 |
|
485,699 |
| ||||
Royal-Angelus Macaroni division |
|
(161,659 |
) |
(175,965 |
) |
(253,485 |
) |
(349,618 |
) | ||||
Corporate |
|
57,281 |
|
(254 |
) |
100,172 |
|
1,354 |
| ||||
|
|
|
|
|
|
|
|
| |||||
Operating income (loss) |
$ |
228,493 |
|
(15,453 |
) |
387,656 |
|
137,435 |
| ||||
|
|
|
|
|
|
|
|
| |||||
June 30, 2002
|
December 31, 2001
|
||||||||||||
Identifiable assets: |
|||||||||||||
Swiss American Sausage division |
$ |
18,495,275 |
|
18,428,801 |
|
||||||||
Royal-Angelus Macaroni division |
|
4,087,674 |
|
4,328,435 |
|
||||||||
Corporate |
|
447,371 |
|
636,596 |
|
||||||||
|
|
|
|
|
|||||||||
Total assets |
$ |
23,030,320 |
|
23,393,832 |
|
||||||||
|
|
|
|
|
Three Months Ended June
30, |
Six Months Ended June
30, |
||||||||||
2002 |
2001 |
2002 |
2001 |
||||||||
Net earnings (loss) |
$ |
92,767 |
(98,634 |
) |
48,473 |
(88,768 |
) | ||||
|
|
|
|
|
|
| |||||
Weighted average number of shares |
|
3,113,228 |
3,056,878 |
|
3,106,333 |
3,050,416 |
| ||||
Incremental shares for options |
|
|
|
|
|
|
| ||||
|
|
|
|
|
|
| |||||
Weighted average plus incremental shares |
|
3,113,228 |
3,056,878 |
|
3,106,333 |
3,050,416 |
| ||||
|
|
|
|
|
|
| |||||
Basic earnings (loss) per share |
$ |
.03 |
(.03 |
) |
.05 |
(.03 |
) | ||||
|
|
|
|
|
|
| |||||
Diluted earnings (loss) per share |
$ |
.03 |
(.03 |
) |
.05 |
(.03 |
) | ||||
|
|
|
|
|
|
|
Three Months Ended June 30, |
Six Months Ended June 30, | |||||||||||
2002 |
2001 |
2002 |
2001 | |||||||||
(Unaudited) | ||||||||||||
(amounts in thousands) | ||||||||||||
Net sales by division: |
||||||||||||
Swiss American |
$ |
7,581 |
$ |
6,731 |
$ |
15,758 |
$ |
13,145 | ||||
Royal-Angelus |
|
1,322 |
|
1,174 |
|
2,917 |
|
2,499 | ||||
|
|
|
|
|
|
|
| |||||
Total |
$ |
8,903 |
$ |
7,905 |
$ |
18,675 |
$ |
15,644 | ||||
|
|
|
|
|
|
|
| |||||
Sales in thousands of pounds by division: |
||||||||||||
Swiss American |
|
5,094 |
|
4,409 |
|
10,521 |
|
8,941 | ||||
Royal-Angelus |
|
2,519 |
|
2,428 |
|
5,333 |
|
5,087 |
Totals |
Six Months Ended December 31, 2002 |
Year Ended December 31, |
Thereafter | ||||||||||||
2003 |
2004 |
2005 |
2006 |
||||||||||||
(amounts in thousands) | |||||||||||||||
Long-Term Debt |
$ |
6,605 |
209 |
504 |
504 |
435 |
341 |
4,612 | |||||||
Capital Lease Obligation |
|
516 |
62 |
113 |
113 |
113 |
115 |
-0- | |||||||
|
|
|
|
|
|
|
| ||||||||
Totals |
$ |
7,121 |
271 |
617 |
617 |
548 |
456 |
4,612 | |||||||
|
|
|
|
|
|
|
|
Nominee |
For |
Withheld |
Without Authority | |||
John D. Determan |
2,388,696 |
0 |
5,000 | |||
Theodore L. Arena |
2,388,696 |
0 |
5,000 | |||
Ronald A. Provera |
2,387,096 |
1,600 |
5,000 | |||
Santo Zito |
2,387,096 |
1,600 |
5,000 | |||
Thomas J. Mulroney |
2,388,696 |
0 |
5,000 | |||
Louis A. Arena |
2,388,696 |
0 |
5,000 | |||
Joseph W. Wolbers |
2,387,096 |
1,600 |
5,000 | |||
John M. Boukather |
2,388,696 |
0 |
5,000 |
PROVENA FOODS | ||
By: |
/s/ THOMAS J.
MULRONEY | |
Thomas J. Mulroney Vice
President and Chief Financial Officer |