Golden Enterprises Inc. (GLDC, Financial) filed Annual Report for the period ended 2009-05-29.
Golden Enterprises Inc. is a holding company which owns all of the issued and outstanding capital stock of Golden Flake Snack Foods Inc. a wholly-owned operating subsidiary company. Golden Flake manufactures and distributes a full line of salted snack items such as potato chips tortilla chips corn chips pretzels fried pork skins baked and fried cheese curls peanut butter crackers cheese crackers onion rings and buttered popcorn. Golden Enterprises Inc. has a market cap of $33.4 million; its shares were traded at around $2.85 with a P/E ratio of 16.8 and P/S ratio of 0.3. The dividend yield of Golden Enterprises Inc. stocks is 4.4%.
Amounts for bad debt expense are recorded in selling, general and administrative
expenses on the Consolidated Statements of Operations. The amount of the
allowance for doubtful accounts is based on management's estimate of the
accounts receivable amount that is uncollectible. The Company records a general
reserve based on analysis of historical data. In addition, the Company records
specific reserves for receivable balances that are considered high-risk due to
known facts regarding the customer. The allowance for bad debts is reviewed
quarterly, and it is determined whether the amount should be changed. Failure of
a major customer to pay the Company amounts owed could have a material impact on
the financial statements of the Company. At May 29, 2009 and May 30, 2008, the
Company had accounts receivables in the amount of $9,297,434 and $7,940,547, net
of an allowance for doubtful accounts of $127,130 and $70,000 respectively. The
Company purchased credit insurance last year which reduced the allowance for
doubtful accounts to $70,000. Without credit insurance, the allowance for
doubtful accounts would have been $88,835 last year. This year, due to the
bankruptcy of two of our customers, we used the calculated allowance of
$127,130.
Amount Range No. of Customers
- -
Less than $1,000.00 1,055
$1,001.00-$10,000.00 542
$10,001.00-$100,000.00 137
$100,001.00-$500,000.00 7
$500,001.00-$1,000,000.00 2
$1,000,001.00-$2,500,000.00 0
-
Total All Accounts 1,743
=
Manufactured Products-Resale Products
2009 2008
- -
Sales % %
Manufactured Products $ 98,701,412 80.8% $ 91,864,474 81.0%
Resale Products 23,467,214 19.2% 21,515,358 19.0%
- -
Total $ 122,168,626 100.0% $ 113,379,832 100.0%
= =
Gross Margin % %
Manufactured Products $ 49,093,733 49.7% $ 47,571,929 51.8%
Resale Products 8,597,087 36.6% 7,042,636 32.7%
- -
Total $ 57,690,820 47.2% $ 54,614,565 48.2%
= =
Working capital was $5,603,395 and $3,861,807 at May 29, 2009 and May 30, 2008,
respectively. Net cash provided by operations amounted to $1,510,066 and
$3,435,839 in fiscal years May 29, 2009 and May 30, 2008, respectively. During
2009, the principal source of liquidity for the Company's operating needs was
provided from operating activities, credit facilities and cash on hand.
Additions to property, plant and equipment are expected to be about $6,500,000
in 2010. Approximately $4,000,000 of these additions will be for the water
treatment project which is being financed through a note payable to a bank.
$1,500,000 is expected to be spent on new handheld computers to be used by the
route sales force and distributors while another $1,000,000 is anticipated for
enhancements in our pork skin department.
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Golden Enterprises Inc. is a holding company which owns all of the issued and outstanding capital stock of Golden Flake Snack Foods Inc. a wholly-owned operating subsidiary company. Golden Flake manufactures and distributes a full line of salted snack items such as potato chips tortilla chips corn chips pretzels fried pork skins baked and fried cheese curls peanut butter crackers cheese crackers onion rings and buttered popcorn. Golden Enterprises Inc. has a market cap of $33.4 million; its shares were traded at around $2.85 with a P/E ratio of 16.8 and P/S ratio of 0.3. The dividend yield of Golden Enterprises Inc. stocks is 4.4%.
Highlight of Business Operations:
The Company records accounts receivable at the time revenue is recognized.Amounts for bad debt expense are recorded in selling, general and administrative
expenses on the Consolidated Statements of Operations. The amount of the
allowance for doubtful accounts is based on management's estimate of the
accounts receivable amount that is uncollectible. The Company records a general
reserve based on analysis of historical data. In addition, the Company records
specific reserves for receivable balances that are considered high-risk due to
known facts regarding the customer. The allowance for bad debts is reviewed
quarterly, and it is determined whether the amount should be changed. Failure of
a major customer to pay the Company amounts owed could have a material impact on
the financial statements of the Company. At May 29, 2009 and May 30, 2008, the
Company had accounts receivables in the amount of $9,297,434 and $7,940,547, net
of an allowance for doubtful accounts of $127,130 and $70,000 respectively. The
Company purchased credit insurance last year which reduced the allowance for
doubtful accounts to $70,000. Without credit insurance, the allowance for
doubtful accounts would have been $88,835 last year. This year, due to the
bankruptcy of two of our customers, we used the calculated allowance of
$127,130.
Amount Range No. of Customers
- -
Less than $1,000.00 1,055
$1,001.00-$10,000.00 542
$10,001.00-$100,000.00 137
$100,001.00-$500,000.00 7
$500,001.00-$1,000,000.00 2
$1,000,001.00-$2,500,000.00 0
-
Total All Accounts 1,743
=
Manufactured Products-Resale Products
2009 2008
- -
Sales % %
Manufactured Products $ 98,701,412 80.8% $ 91,864,474 81.0%
Resale Products 23,467,214 19.2% 21,515,358 19.0%
- -
Total $ 122,168,626 100.0% $ 113,379,832 100.0%
= =
Gross Margin % %
Manufactured Products $ 49,093,733 49.7% $ 47,571,929 51.8%
Resale Products 8,597,087 36.6% 7,042,636 32.7%
- -
Total $ 57,690,820 47.2% $ 54,614,565 48.2%
= =
Working capital was $5,603,395 and $3,861,807 at May 29, 2009 and May 30, 2008,
respectively. Net cash provided by operations amounted to $1,510,066 and
$3,435,839 in fiscal years May 29, 2009 and May 30, 2008, respectively. During
2009, the principal source of liquidity for the Company's operating needs was
provided from operating activities, credit facilities and cash on hand.
Additions to property, plant and equipment are expected to be about $6,500,000
in 2010. Approximately $4,000,000 of these additions will be for the water
treatment project which is being financed through a note payable to a bank.
$1,500,000 is expected to be spent on new handheld computers to be used by the
route sales force and distributors while another $1,000,000 is anticipated for
enhancements in our pork skin department.
Read the The complete Report
