ITEM 1. BUSINESS
(a) General Development of Business
Bowl America Incorporated (herein referred to as the Company) was incorporated in 1958. The Company commenced business with one bowling center in 1958, and at the end of the past fiscal year, the Company and its wholly- owned subsidiaries operated 25 bowling centers. It is in the process of enlarging its bowling center in Dranesville, Virginia from 32 lanes to 48 lanes. The Company's bowling center in Silver Hill, Maryland was closed in May 1995 as a result of its condemnation in conjunction with the expansion of the Metro Subway System. The Company is seeking other new bowling locations.
(b) Financial Information about Industry Segments
The Company has no segments in different industries. Its principal source of revenue consists of fees charged for the use of bowling lanes and other facilities and from the sale of food and beverages for consumption on the premises. Merchandise sales, including food and beverages, were approximately 31% of operating revenues. The balance of operating revenues (approximately 69%) represents fees for bowling and related services.
(c) Narrative Description of Business
As of September 1, 1996 the Registrant and its subsidiaries operated 14 bowling centers in the greater metropolitan area of Washington, D.C., three bowling centers in the greater metropolitan area of Baltimore, Maryland, two bowling centers in the greater metropolitan area of Orlando, Florida, three bowling centers in the greater metropolitan area of Jacksonville, Florida, and three bowling centers in the greater metropolitan area of Richmond, Virginia. These 25 bowling centers contain a total of 936 lanes. When the expansion of the Dranesville center is completed, the 25 bowling centers will contain 952 lanes. These establishments are fully air-conditioned with facilities for service of food and beverages, game rooms, rental lockers, and playroom facilities. All centers provide shoes for rental, and bowling balls are provided free. In addition, each center retails bowling acessories. The bowling equipment essential for the Company's operation is readily available. The major source of its equipment is Brunswick Corporation. The bowling business is a seasonal one, and most of the business takes place from October through May. It is highly competitive, but the Company has managed to maintain its position in the field. The principal method of competition is the quality of service furnished to the Company's customers. Its primary competitors are two large bowling equipment manufacturers, Brunswick Corporation and AMF, Inc. Compliance with federal, state and local environmental protection laws has not materially affected the Company. The number of persons employed by the Company and its subsidiaries is approximately 800.
(d) Foreign Operations
The Company has no foreign operations.
ITEM 2.
ITEM 2. PROPERTIES
The Company's general offices are located at 6446 Edsall Road, Alexandria, Virginia 22312. Nine of the Company's bowling centers are located in leased premises, and the remaining sixteen centers (including the new center in Gaithersburg, Maryland) are owned by the Company. The Company's leases, giving effect to option renewal periods, expire from 1997 through 2014 and the remainder there- after. In addition to the above, there is one ground lease which expires in 2058. The specific locations of the bowling centers are discussed under Item 1 (c).
ITEM 3.
ITEM 3. LEGAL PROCEEDINGS
There are no material pending legal proceedings other than ordinary routine litigation incidental to the business. There were no legal proceedings terminated during the fourth quarter ended June 30, 1996.
ITEM 4.
ITEM 4. SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS
No matters were submitted to a vote of security holders during the fourth quarter ended June 30, 1996.
PART II
ITEM 5.
ITEM 5. MARKET FOR THE REGISTRANT'S COMMON STOCK AND RELATED SECURITY HOLDER MATTERS
The information set forth in the section entitled "Market Information", "Holders", and "Dividends" on page 3 of the Company's June 30, 1996 Annual Report is incorporated by reference herein.
ITEM 6.
ITEM 6. SELECTED FINANCIAL DATA
The information set forth in the section entitled "Selected Financial Data" on page 3 of the Company's June 30, 1996 Annual Report is incorporated by reference herein.
ITEM 7.
ITEM 7. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS
The information set forth in the section entitled "Management's Discussion and Analysis of Financial Condition and Results of Operations" on page 2 of the Company's June 30, 1996 Annual Report is incorporated by reference herein.
ITEM 8.
ITEM 8. FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA
The Consolidated Financial Statements and related notes thereto, the Independent Auditors' Report and the Selected Quarterly Financial Data (unaudited), as contained on pages 4 through 10 of the Company's June 30, 1996 Annual Report, are incorporated by reference herein.
ITEM 9.
ITEM 9. CHANGES IN AND DISAGREEMENTS WITH ACCOUNTANTS ON ACCOUNTING AND FINANCIAL DISCLOSURE
None
PART III
ITEM 10.
ITEM 10. DIRECTORS AND EXECUTIVE OFFICERS OF THE REGISTRANT
Pursuant to General Instruction G(3) of Form 10-K, the information called for by this item regarding directors is hereby incorporated by reference from the Company's definitive proxy statement to be filed pursuant to Regulation 14A not later than 120 days after the end of the fiscal year covered by this report.
ITEM 11.
ITEM 11. EXECUTIVE COMPENSATION
Pursuant to General Instruction G(3) of Form 10-K, the information called for by this item is hereby incorporated by reference from the Company's definitive proxy statement to be filed pursuant to Regulation 14A not later than 120 days after the end of the fiscal year covered by this report.
ITEM 12.
ITEM 12. SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND MANAGEMENT
Pursuant to General Instruction G(3) of Form 10-K, the information called for by this item is hereby incorporated by reference from the Company's definitive proxy statement to be filed pursuant to Regulation 14A not later than 120 days after the end of the fiscal year covered by this report.
ITEM 13.
ITEM 13. CERTAIN RELATIONSHIPS AND RELATED TRANSACTIONS
Pursuant to General Instruction G(3) of Form 10-K, the information called for by this item is hereby incorporated by reference from the Company's definitive proxy statement to be filed pursuant to Regulation 14A not later than 120 days after the end of the fiscal year covered by this report.
PART IV
ITEM 14.
ITEM 14. EXHIBITS, FINANCIAL STATEMENTS AND REPORTS ON FORM 8-K
(a)1. Financial Statements
The following consolidated financial statements of Bowl America Incorporated and its subsidiaries are incorporated by reference in Part II, Item 8:
Independent auditors' report Consolidated balance sheets - June 30, 1996 and July 2, 1995 Consolidated statements of earnings - years ended June 30, 1996, July 2, 1995, and July 3, 1994 Consolidated statements of stockholders' equity - years ended June 30, 1996, July 2, 1995, and July 3, 1994 Consolidated statements of cash flows - years ended June 30, 1996, July 2, 1995, and July 3, 1994 Notes to the consolidated financial statements - years ended June 30, 1996, July 2, 1995, July 3, 1994
(a)2. Exhibits:
1. Subsidiaries of registrant
(b) Reports on Form 8-K:
The Company filed a report on Form 8-K with respect to the extension of the employment contract with Leslie H. Goldberg, President, for the period from July 1, 1996 to June 30, 1997.
BOWL AMERICA INCORPORATED
SIGNATURES
Pursuant to the requirements of Section 13 or 15(d) of the Securities Exchange Act of 1934, the Company has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.
BOWL AMERICA INCORPORATED
Leslie H. Goldberg Leslie H. Goldberg President and Principal Executive & Operating Officer
Date: September 26, 1996
Ruth Macklin Ruth Macklin Senior Vice President-Treasurer
Date: September 26, 1996
Cheryl A. Dragoo Cheryl A. Dragoo Assistant Treasurer and Controller Principal Accounting Officer
Date: September 26, 1996
BOWL AMERICA INCORPORATED
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, this report has been signed below by the following persons on behalf of the registrant and in the capacities and the dates indicated.
Name, Title, Capacity
Leslie H. Goldberg Leslie H. Goldberg President, Principal Executive & Operating Officer & Director
Date: September 26, 1996
Ruth Macklin Howard Katzman Ruth Macklin Howard Katzman Senior Vice President-Treasurer Senior Vice President-Secretary and Director and Director
Date: September 26, 1996 Date: September 26, 1996
Joan Sobkov A. Joseph Levy Joan Sobkov A. Joseph Levy Director Director
Date: September 26, 1996 Date: September 26, 1996
Warren T. Braham Merle Fabian Warren T. Braham Merle Fabian Director Director
Date: September 26, 1996 Date: September 26, 1996
Milton Lyons Milton Lyons Director
Date: September 26, 1996