10-Q

FORM  10-Q

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C. 20549

Quarterly Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934

FOR THE QUARTERLY PERIOD ENDED: OCTOBER 2, 2016

COMMISSION FILE NUMBER: 001-7829

BOWL AMERICA INCORPORATED

(Exact name of registrant as specified in its charter)

MARYLAND	54-0646173
(State of Incorporation)	(I.R.S.Employer Identification No.)

6446 Edsall Road, Alexandria, Virginia  22312

(Address of principal executive offices)(Zip Code)

(703) 941-6300

(Registrant's telephone number including area code)

Indicate by check mark whether the registrant: (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes X No __

Indicate by check mark whether the registrant has submitted electronically and posted on its corporate Web site, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T (232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files).

Yes X No __

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, or a smaller reporting company. See the definitions of “accelerated filer,” “large accelerated filer” and “smaller reporting company” in Rule 12b-2 of the Exchange Act.

 Large Accelerated Filer __  Accelerated Filer __  Non-Accelerated Filer __  Smaller Reporting Company X

Indicate by check mark whether the registrant is a shell company (as defined by Rule 12b-2 of the Exchange Act)

    Yes __    No X

Indicate the number of shares outstanding of each of the issuer's

classes of common stock, as of the latest practicable date:

	Shares Outstanding at
	November 11, 2016
Class A Common Stock,
$.10 par value	3,746,454
Class B Common Stock,
$.10 par value	1,414,517

PART 1. FINANCIAL INFORMATION

ITEM 1. FINANCIAL STATEMENTS

 BOWL AMERICA INCORPORATED AND SUBSIDIARIES

  CONDENSED CONSOLIDATED STATEMENTS OF EARNINGS

  (Unaudited)

	Thirteen Weeks Ended
	October 2,			September 27,
	2016			2015
Operating Revenues:
Bowling and other	$	3,577,379		$	3,474,033
Food, beverage and merchandise sales		1,486,957			1,446,130
Total Operating Revenue		5,064,336			4,920,163
Operating Expenses:
Employee compensation and benefits		2,681,333			2,746,545
Cost of bowling and other services		1,469,370			1,510,612
Cost of food, beverage and merchandise sales		482,275			469,342
Depreciation and amortization		292,694			336,187
General and administrative		230,776			231,781
Total Operating Expenses		5,156,448			5,294,467
Operating Loss		(92,112	)		(374,304	)
Interest, dividend and other income		93,714			146,528
Interest expense		2,722			-
Loss before provision for income tax benefit		(1,120	)		(227,776	)
Provision for income tax benefit		(400	)		(79,700	)
Net loss	$	(720	)	$	(148,076	)
Net loss per share-basic & diluted		(.00	)		(.03	)
Weighted average shares outstanding		5,160,971			5,160,971
Dividends paid	$	877,365		$	877,365
Per share, dividends paid, Class A	$	.17		$	.17
Per share, dividends paid, Class B	$	.17		$	.17

The operating results for the thirteen (13) week period ended October 2, 2016 are not necessarily indicative of results to be expected for the year.  See notes to condensed consolidated financial statements.

2

BOWL AMERICA INCORPORATED AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF EARNINGS (CONTINUED)

(Unaudited)

CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE EARNINGS

	Thirteen Weeks Ended
	October 2,			September 27,
	2016			2015
Net Loss	$	(720	)	$	(148,076	)
Other comprehensive earnings-net of tax
Unrealized loss on available-for-sale securities net of tax benefit of $116,046 and $180,812		(187,618	)		(293,762	)
Reclassification adjustment for loss (gain) included in net loss, net of tax (benefit) of ($2,227) and $9,258		3,619			(15,041	)
Comprehensive Loss	$	(184,719	)	$	(456,879	)

The operating results for the thirteen (13) week period ended October 2, 2016 are not necessarily indicative of results to be expected for the year.

See notes to condensed consolidated financial statements.

3

BOWL AMERICA INCORPORATED AND SUBSIDIARIES

Condensed Consolidated Balance Sheets

(Unaudited)

	As of
	October 2,		July 3,
	2016		2016
ASSETS
CURRENT ASSETS:
Cash and cash equivalents	$	571,487	$	986,193
Short-term investments		485,452		484,558
Inventories		591,287		561,217
Prepaid expenses and other		426,559		664,379
Income taxes refundable		187,060		-
TOTAL CURRENT ASSETS		2,261,845		2,696,347
LAND, BUILDINGS & EQUIPMENT, net of accumulated depreciation of $41,268,477 and $40,987,543		19,336,340		19,523,856
OTHER ASSETS:
Marketable investment securities		8,540,728		8,824,456
Cash surrender value-life insurance		740,161		740,161
Other		66,315		66,315
TOTAL OTHER ASSETS		9,347,204		9,630,932
TOTAL ASSETS	$	30,945,389	$	31,851,135
LIABILITIES AND STOCKHOLDERS' EQUITY
CURRENT LIABILITIES:
Accounts payable	$	439,729	$	660,711
Accrued expenses		773,467		1,193,463
Dividends payable		877,365		877,365
Income taxes payable		-		207,840
Short-term note payable		500,000		-
Other current liabilities		940,073		325,982
Current deferred income taxes		27,850		27,850
TOTAL CURRENT LIABILITIES		3,558,484		3,293,211
LONG-TERM DEFERRED COMPENSATION		23,620		23,620
NONCURRENT DEFERRED INCOME TAXES		2,273,354		2,384,962
TOTAL LIABILITIES		5,855,458		5,701,793
COMMITMENTS AND CONTINGENCIES
STOCKHOLDERS' EQUITY
Preferred stock, par value $10 a share:
Authorized and unissued, 2,000,000 shares		-		-
Common stock, par value $.10 a share:
Authorized, 10,000,000 shares
Class A issued and outstanding 3,746,454		374,645		374,645
Class B issued and outstanding 1,414,517		141,452		141,452
Additional paid-in capital		7,854,108		7,854,108
Accumulated other comprehensive earnings-
Unrealized gain on available-for-sale
securities, net of tax		2,805,261		2,986,587
Retained earnings		13,914,465		14,792,550
TOTAL STOCKHOLDERS' EQUITY		25,089,931		26,149,342
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY	$	30,945,389	$	31,851,135

See notes to condensed consolidated financial statements.

4

BOWL AMERICA INCORPORATED AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS  OF CASH FLOWS

(Unaudited)

	Thirteen Weeks Ended
	October 2,			September 27,
	2016			2015
Cash Flows From Operating Activities
Net loss	$	(720	)	$	(148,076	)
Adjustments to reconcile net loss to net cash provided by operating activities:
Depreciation and amortization		292,694			336,187
Loss on involuntary cancellation of available-for-sale securities		5,845			-
Gain on sale of available-for-sale securities		-			(24,299	)
Changes in assets and liabilities
Increase in inventories		(30,070	)		(62,507	)
Decrease in prepaid & other		237,820			298,485
Increase in income taxes refundable		(187,060	)		(26,000	)
Increase in deferred tax asset		-			(79,700	)
Decrease in accounts payable		(220,982	)		(258,733	)
Decrease in accrued expenses		(419,996	)		(158,099	)
Decrease in income taxes payable		(207,840	)		-
Increase in other current liabilities		614,091			614,504
Net cash provided by operating activities		83,782			491,762
Cash Flows From Investing Activities
Expenditures for land, building and equipment		(105,178	)		(19,381	)
Net (purchases) sales & maturities of short-term investments		(894	)		(12	)
Proceeds from sale of available-for-sale securities		-			1,000,000
Net purchases of marketable securities		(15,051	)		(18,578	)
Net cash (used in) provided by investing activities		(121,123	)		962,029
Cash Flows From Financing Activities
Proceeds from note payable		500,000			-
Payment of cash dividends		(877,365	)		(877,365	)
Net cash used in financing activities		(377,365	)		(877,365	)
Net Change in Cash and Equivalents		(414,706	)		576,426
Cash and Cash Equivalents, Beginning of period		986,193			778,367
Cash and Cash Equivalents, End of period	$	571,487		$	1,354,793
Supplemental Disclosures of Cash Flow Information
Cash Paid During the Period for:
Interest		2,722			-
Income taxes	$	394,500		$	26,000

See notes to condensed consolidated financial statements.

5

BOWL AMERICA INCORPORATED AND SUBSIDIARIES

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

For the Thirteen Weeks Ended

October 2, 2016

(Unaudited)

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 July 3, 2016 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 July 3, 2016.

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 October 2, 2016 and July 3, 2016 were as follows:

October 2, 2016 Description	Fair Value		Cost basis		Unrealized Gain
Short-term investments	$	485,452	$	485,452	$	-
Equity securities	$	5,703,049	$	1,279,914	$	4,423,135
Mutual funds	$	2,837,679	$	2,728,910	$	108,769

July 3, 2016 Description	Fair Value		Cost basis		Unrealized Gain
Short-term investments	$	484,558	$	484,558	$	-
Equity securities	$	6,001,841	$	1,285,759	$	4,716,082
Mutual funds	$	2,822,615	$	2,713,860	$	108,755

6

The fair values of the Company’s investments were determined as follows:

October 2, 2016 Description	Quoted Price for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)
Certificates of deposits	$	-	$	485,452	$	-
Equity securities		5,703,049		-		-
Mutual funds		2,837,679		-		-
Total	$	8,540,728	$	485,452	$	-

July 3, 2016 Description	Quoted Price for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)
Certificates of deposits	$	-	$	484,558	$	-
Equity securities		6,001,841		-		-
Mutual funds		2,822,615		-		-
Total	$	8,824,456	$	484,558	$	-

The equity securities portfolio includes the following stocks:

AT&T shares	82,112
Manulife shares	2,520
CSAL shares	815
NCR shares	774
Teradata shares	774
Vodafone shares	6,471
CenturyLink shares	4,398
Frontier Communications shares	4,508
Sprint shares	40,000
Verizon shares	31,904
Windstream shares	679

     On August 1, 2016, Dex Media, a spin off from Verizon, completed a financial restructure. Previous shares of Dex Media’s common stock were cancelled with no distribution to shareholders resulting in a loss of $5,845 on the Company’s holdings.

     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.

2. Note Payable

     In August 2016 the Company obtained a $500,000 short-term loan that matures in February 2017. The loan bears interest at the one month LIBOR rate plus 2.5% with interest only payable monthly. A portion of the loan is collateralized by certificates of deposits.

3.  Commitments and Contingencies

The Company’s purchase commitments at October 2, 2016, are for materials, supplies, services and equipment as part of the normal course of business.

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.

7

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

There were no new accounting pronouncements during the quarter ended October 2, 2016, that would impact the Company.

6. Subsequent Events

    The Company has evaluated subsequent events through the time of filing these financial statements with the Securities and Exchange Commission on November 15, 2016, and has determined that no material subsequent events have occurred.

7.  Reclassifications

Certain previous year amounts have been reclassified to conform with current year presentation.

8

ITEM 2.  MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

FORWARD-LOOKING STATEMENTS

This Quarterly Report on Form 10-Q contains forward-looking statements concerning our business, operations and financial performance and condition as well as our plans, objectives and expectations for our business operations and financial performance and condition that are subject to risks and uncertainties. All statements other than statements of historical fact included in this Quarterly Report on Form 10-Q are forward-looking statements. These forward-looking statements are based on current expectations, estimates, forecasts and projections about our business, our sales and the industry in which we operate and our management’s beliefs and assumptions. These statements are not guarantees of future performance or development and involve risks, uncertainties and other factors that are in some cases beyond our control. The forward-looking statements included in this Quarterly Report on Form 10-Q are made as of the date hereof. We are under no obligation to publicly update or revise any forward-looking statement as a result of new information, future events or otherwise, except as otherwise required by law.

LIQUIDITY AND CAPITAL RESOURCES

The Company views a strong financial position as a major benefit to shareholders and emphasizes payment of dividends as part of its financial plan.  A portion of earnings has consistently been invested to create a reserve to protect the Company in downturns in business, to capitalize on opportunities for expansion and modernization, to provide a secure source of income and to provide a predictable return to its owners.  For these reasons, the Company prefers a conservative approach to investing rather than taking greater risk for possible rapid growth.  The Company balances market volatility by using both fixed income and equity investments in managing its reserve funds. Any equity security is subject to price fluctuation, however, the stocks held by the Company have relatively low volatility. The Company has long been invested in a Government National Mortgage Association (“Ginnie Mae”) fund and domestically domiciled stocks with the perceived potential of appreciation, primarily telecommunications stocks. The Company considers that this diversity also provides a measure of safety of principal.

With the exception of 13,120 shares of Verizon, the common stocks in our portfolio have come from spin-offs, mergers and acquisitions of AT&T and United Telecommunications (now Sprint) purchased in 1979 and 1984 and one insurance company acquired at no cost when the company demutualized. While not all stocks in the portfolio are domestic American companies any longer, since the original purchases at an approximate cost of $630,000, we have received approximately $967,000 from mergers and sales and over $4,400,000 in dividends, the majority of which were tax favored in the form of exclusion from federal taxable income. The exclusion continues into this fiscal year. These marketable securities are carried at their fair value on the last day of each reporting period. The value of the securities on October 2, 2016 was approximately $5.7 million. The value of securities held at July 3, 2016 was approximately $6 million. Short-term investments consisting mainly of Certificates of Deposits, cash and cash equivalents totaled $1,057,000 at October 2, 2016 compared to $1,471,000 at July 3, 2016.

The Company’s original investment in the Vanguard GNMA bond fund began in 1988 with purchases of shares in the fund totaling approximately $1,400,000. The fund is carried at fair value on the last day of the reporting period. At October 2, 2016, the value was approximately $2,838,000. In August 2015 $1,000,000 of this fund was redeemed to meet the August 2015 dividend payment.

The Company’s position in all the above investments is a source of capital for possible expansion. Potential volatility in the trading prices of the marketable securities held by the Company could impact the Company’s opportunities for expansion. The Board of Directors reviews the portfolio weekly and any use of this reserve at its quarterly meetings.

In August 2016 the Company obtained a $500,000 short-term loan to meet the August 2016 dividend obligation. The loan, collateralized by certificates of deposits, is due in February 2017. Interest is due and paid monthly and is based on the one-month LIBOR rate plus 2.5%.

During the three-month period ended October 2, 2016, the Company expended approximately $105,000 for the purchase of building, entertainment and restaurant equipment.  Except as noted above, the Company has no current plans to obtain additional third party funding as cash and cash flows are sufficient to finance all contemplated purchases and to meet short-term purchase commitments and operating lease commitments.

The first quarter decreases in the categories of Prepaid expenses and other and of Accounts Payable were attributable primarily to the timing of the payments including compensation, insurance and taxes and for contributions to benefit plans.

9

Current liabilities generally increase during the first three quarters of the fiscal year as bowling leagues deposit prize fund monies with the Company throughout the league season. These funds are returned to the leagues at the end of the bowling season, generally in the fourth quarter. At October 2, 2016, league deposits of approximately $766,000 were included in the current liabilities category.

Cash flow provided by operating activities in the thirteen weeks ended October 2, 2016 was $84,000 which, along with cash on hand, and a note in the amount of $500,000 was sufficient to meet day-to-day cash needs and pay dividends. Cash dividends of approximately $877,000, or $.17 per share, were paid to shareholders during the three-month period ended October 2, 2016.  In September 2016, the Company declared a regular quarterly dividend of $.17 per share, payable November 16, 2016.  The economic climate is part of the consideration at the Directors’ quarterly reviews of future estimates of cash flows. The Board of Directors decides the amount and timing of any dividend at its quarterly meeting based on its appraisal of the state of the business and estimate of future opportunities at such time.

Overview

The Company is in the entertainment business which, by its nature, has ups and downs based on consumer tastes and preferences.  Generally, promotional and open play bowling which depends on the public’s discretionary budget dollars and their choices, accounts for more than half of our business. An unstable economy can lead many to participate in entertainment that is close to home and relatively inexpensive.  Bowling has those advantages.  However if the economy remains unstable, people are less willing to spend on other than necessities.  Weather is also a factor, especially for casual bowlers.  While extreme heat or rainy weather prompt people to look for indoor activities, heavy snow storms can keep customers from reaching the centers. Postponed league games are made up later in the season, but lost open play income is never recovered.  The Company operates primarily in the Washington, DC area where its business is vulnerable to sequestration or other downsizing of the federal government.

RESULTS OF OPERATIONS

The following table sets forth the items in our consolidated summary of operations for the fiscal quarters ended October 2, 2016 and September 27, 2015, and the dollar and percentage changes therein.

	Thirteen weeks ended
	October 2, 2016 and September 27, 2015
	Dollars in thousands
	2016			2015			Change			% Change
Operating Revenues:
Bowling and other	$	3,577		$	3,474		$	103			3.0
Food, beverage and merchandise sales		1,487			1,446			41			2.8
		5,064			4,920			144			2.9
Operating Expenses:
Employee Compensation and benefits		2,681			2,746			(65	)		(2.4	)
Cost of bowling and other services		1,469			1,511			(42	)		(2.8	)
Cost of food, beverage and merchandise sales		482			469			13			2.8
Depreciation and amortization		293			336			(43	)		(12.8	)
General and administrative		231			232			(1	)		(0.4	)
		5,156			5,294			(138	)		(2.6	)
Operating loss		(92	)		(374	)		282			75.4
Interest, dividend and other income		94			146			(52	)		(35.6	)
Interest expense		3			-			3			100.0
Loss before tax benefit		(1	)		(228	)		227			99.6
Income tax benefit		-			(80	)		80			100.0
Net loss	$	(1	)	$	(148	)	$	147			99.3

10

For the thirteen week period ended October 2, 2016 there was a loss of $720 or $.00 per share. For the thirteen week period ended September 27, 2015 there was a loss of $148,076 or $.03 per share. Eighteen locations were in operation in both the current and prior year quarters. The bowling business is seasonal and the first quarter which includes summer months is typically the slowest. The operating results for the fiscal 2017 period included in this report are not necessarily indicative of results to be expected for the year.

Operating Revenues

Total operating revenues increased 2.9% or $144,000 to $5,064,000 in the thirteen-week period ended October 2, 2016, compared to an increase of 6.3% or $291,000 to $4,920,000 in the three-month period ended September 27, 2015.  Bowling and other revenue increased $103,000 or 3% in the current year fiscal quarter compared to an increase of $173,000 or 5% in the comparable prior year quarter. Food, beverage and merchandise sales were up $41,000 or 2.8% in the current year quarter due to increased traffic, compared to an increase of $118,000 or 8.9% in the prior year comparable quarter.  Cost of sales increased $13,000 in the current year three-month period due to higher sales.

Operating Expenses

Operating expenses were down $138,000 or 2.6% to $5,156,000 in the three-month period ended October 2, 2016 compared to an increase of $34,000 or 1% to $5,294,000 in the prior year quarter ended September 27, 2015.  Employee compensation and benefits were down $65,000 or 2% and down $7,000 or less than 1% in the fiscal first quarters of 2017 and 2016, respectively. The Company continued to make scheduling adjustments resulting in a decrease in compensation.  In addition, state unemployment tax rates decreased from the prior year. In the current year group health insurance costs were lower due to changes in plan offerings with lower premiums.   Included in this category of expense are contributions to our two benefit plans, both of which are defined contribution plans. There is no additional obligation beyond the current year contribution.

Cost of bowling and other services decreased $42,000 or 3% in the quarter ended October 2, 2016 versus a decrease of $18,000 or 1% in the comparable quarter ended September 27, 2015. Maintenance and repair costs were up $22,000 or 10% and $2,000 or 1% in the current year and prior year quarters, respectively. The current year period included roof repairs and plumbing repairs at several locations. The prior fiscal year period included air conditioning repairs at several locations. Advertising costs decreased $6,000 or 7% in the quarter ended October 2, 2016.  Utility costs were up $3,000 or 1% in the in both the current and prior year periods. Supplies and services expenses were down $20,000 or 10% and were up $15,000 or 8% in the thirteen-week periods ended October 2, 2016 and September 27, 2015, respectively, partially due to timing of bulk purchases.

Depreciation and amortization expense was down 13% in the three-month period ended October 2, 2016 as a large group of assets reached full depreciation.

As stated above, the first quarter of the fiscal year is seasonally the slowest and the quarter ended October 2, 2016 resulted in an operating loss of $720 compared to an operating loss of $148,000 in the prior year period.

Interest, Dividend and Other Income

Interest, dividend and other income declined in the three month period ended October 2, 2016 primarily due to the timing of receipts for ancillary income and the end of some parking lot rental agreements.

 CRITICAL ACCOUNTING POLICIES

Management has identified accounting for marketable investment securities as a critical accounting policy due to the significance of the amounts included in the Company’s balance sheet under the captions of Short-term investments and Marketable securities.  The Company exercises judgment in determining the classification of its investment securities as available-for-sale and in determining their fair value.  The Company records these investments at their fair value with the unrealized gain or loss recorded in accumulated other comprehensive earnings, a component of stockholders’ equity, net of deferred taxes.  Additionally, from time to time the Company must assess whether write-downs are necessary for other than temporary declines in value.

11

Management has identified accounting for the impairment of long-lived assets as a critical accounting policy due to the significance of the amounts included in the Company’s balance sheet under the caption of Land, Buildings and

Equipment.  The Company reviews long-lived assets whenever events or changes indicate that the carrying amount of an asset may not be recoverable.  In making such evaluations, the Company compares the expected future cash flows to the carrying amount of the assets.  An impairment loss equal to the difference between the assets’ fair value and carrying value is recognized when the estimated future cash flows are less than the carrying amount.

ITEM 4. CONTROLS AND PROCEDURES.

The Company’s Chief Executive Officer and Chief Financial Officer have concluded that the Company’s disclosure controls and procedures are effective based on their evaluation of such controls and procedures as of October 2, 2016. There was no change in the Company’s internal control over financial reporting identified in connection with the evaluation that occurred during the quarter ended October 2, 2016, that materially affected, or is reasonably likely to materially affect, the Company’s internal control over financial reporting.

12

BOWL AMERICA INCORPORATED AND SUBSIDIARIES

S.E.C. FORM 10-Q

PART II - OTHER INFORMATION

Item 6.  Exhibits.

20	Press release issued November 15, 2016 (furnished herewith)
31.1	Certification of Chief Executive Officer Pursuant to Section 302 of the Sarbanes-Oxley Act filed herewith
31.2	Certification of Chief Financial Officer Pursuant to Section 302 of the Sarbanes-Oxley Act filed herewith
32	Written Statement of the Chief Executive Officer and Chief Financial Officer Pursuant to 18 U.S.C. 1350 filed herewith
101	Interactive data files for the thirteen weeks ended October 2, 2016 in eXtensible Business Reporting Language

Pursuant to the requirements of the Securities Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.

	Bowl America Incorporated
	(Registrant)
Date: November 15, 2016	By:  /s/ Leslie H Goldberg
	Leslie H. Goldberg, President
Date: November 15, 2016	By:  /s/ Cheryl A. Dragoo
	Cheryl A. Dragoo, Controller

13

EX-20

Exhibit 20 Press release issued November 15, 2016

For Immediate Release          November 15, 2016

BOWL AMERICA FIRST QUARTER REVENUES UP

Bowl America Incorporated today reported its fiscal 2017 first or “summer” quarter earnings improved to break-even from a loss of $.03 per share in last year’s first quarter. The quarter, a seasonally slow period, was helped by a 3% increase in revenues and decreases in operating expenses.

The Company will pay a regular quarterly dividend of $.17 per share on November 16, 2016 to stockholders of record as of October 18, 2016.    

Bowl America operates 18 bowling centers and its Class A Common Stock trades on the NYSE MKT Exchange with the symbol BWLA. A more detailed explanation of results is available in the Company’s S.E.C. Form 10-Q filing, available at the Company’s web site www.bowlamericainc.com.

* * * *

BOWL AMERICA INCORPORATED

Results of Operations

(unaudited)

	Thirteen weeks ended
	October 2,			September 27,
	2016			2015
Revenues
Bowling and other	$	3,577,379		$	3,474,033
Food & mdse sales		1,486,957			1,446,130
		5,064,336			4,920,163
Operating expenses excluding depreciation and amortization		4,863,754			4,958,280
Depreciation and amortization		292,694			336,187
Interest, dividend & other income		93,714			146,528
Interest expense		2,722			-
Loss before tax benefit		(1,120	)		(227,776	)
Net loss	$	(720	)	$	(148,076	)
Comprehensive loss	$	(184,719	)	$	(456,879	)
Weighted average shares outstanding		5,160,971			5,160,971
LOSS PER SHARE		(.00	)		(.03	)

1 

SUMMARY OF FINANCIAL POSITION

(unaudited)

Dollars in Thousands

	10/02/16		09/27/15
ASSETS
Total current assets including cash and short-term investments of $1,057 & $1,489	$	2,262	$	2,451
Property and investments		28,683		28,285
TOTAL ASSETS	$	30,945	$	30,736
LIABILITIES AND STOCKHOLDERS' EQUITY
Total current liabilities	$	3,558	$	3,086
Other liabilities		2,297		2,010
Stockholders' equity		25,090		25,640
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY	$	30,945	$	30,736

2

EX-31.1

EX-31.1

Exhibit 31.1 to Form 10-Q

Certification of Chief Executive Officer

Pursuant to Section 302 of the Sarbanes-Oxley Act and Rule 13a-14(a)

Or 15d-14(a) under the Securities Exchange Act of 1934

I, Leslie H. Goldberg, certify that:

1. I have reviewed this Quarterly Report on Form 10-Q of Bowl America Incorporated;

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4. The registrant's other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

a)	Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;
b)	Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;
c)	Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and
d)	Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and

5. The registrant's other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions):

a)	All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize an report financial information; and
b)	Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting

Date: November 15, 2016	/s/ Leslie H Goldberg
	Leslie H Goldberg
	Chief Executive Officer

EX-31.2

Exhibit 31.2

Exhibit 31.2 to Form 10Q

Certification of Chief Financial Officer

Pursuant to Section 302 of the Sarbanes-Oxley Act and Rule 13a-14(a)

Or 15d-14(a) under the Securities Exchange Act of 1934

I, Cheryl A. Dragoo, certify that:

1. I have reviewed this Quarterly Report on Form 10-Q of Bowl America Incorporated;

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4. The registrant's other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

a)	Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;
b)	Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;
c)	Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and
d)	Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter that has materially affected, or is reasonably likely to materially affect, the registrant's internalcontrol over financial reporting; and

5. The registrant's other certifying officer and I have disclosed, based on our most recent evaluation

of internal control over financial reporting, to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions):

a)	All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and
b)	Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting

Date: November 15, 2016	/s/ Cheryl A Dragoo
	Cheryl A Dragoo
	Chief Financial Officer

EX-32

Exhibit 32 to Form 10Q

Written Statement of the Chief Executive Officer and Chief Financial Officer

Pursuant to 18 U.S.C. 1350

       Solely for the purposes of complying with 18 U.S.C. 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, we, the undersigned Chief Executive Officer and Chief Financial Officer of Bowl America Incorporated (the "Company"), respectively, hereby certify, based on our knowledge, that the Quarterly Report on Form 10-Q of the Company for the quarter ended October 2, 2016 (the "Report"), fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934 and that the information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.

/s/ Leslie H. Goldberg              

Leslie H. Goldberg

Chief Executive Officer

/s/ Cheryl A. Dragoo               

Cheryl A. Dragoo

Chief Financial Officer

Date: November 15, 2016

XML

Document And Entity Information - shares	3 Months Ended
	Oct. 02, 2016	Nov. 11, 2016
Common Class B [Member]
Document Information [Line Items]
Entity Common Stock, Shares Outstanding (in shares)		1,414,517
Common Class A [Member]
Document Information [Line Items]
Entity Common Stock, Shares Outstanding (in shares)		3,746,454
Entity Registrant Name	BOWL AMERICA INC
Entity Central Index Key	0000013573
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	Oct. 02, 2016
Document Fiscal Year Focus	2017
Document Fiscal Period Focus	Q1
Amendment Flag	false

XML

Condensed Consolidated Statements of Earnings (Current Period Unaudited) - USD ($)	3 Months Ended
	Oct. 02, 2016	Sep. 27, 2015
Common Class A [Member]
Operating Expenses:
Per share, dividends paid (in dollars per share)	$ 0.17	$ 0.17
Common Class B [Member]
Operating Expenses:
Per share, dividends paid (in dollars per share)	$ 0.17	$ 0.17
Bowling and other	$ 3,577,379	$ 3,474,033
Food, beverage and merchandise sales	1,486,957	1,446,130
Total Operating Revenue	5,064,336	4,920,163
Employee compensation and benefits	2,681,333	2,746,545
Cost of bowling and other services	1,469,370	1,510,612
Cost of food, beverage and merchandise sales	482,275	469,342
Depreciation and amortization	292,694	336,187
General and administrative	230,776	231,781
Total Operating Expenses	5,156,448	5,294,467
Operating Loss	(92,112)	(374,304)
Interest, dividend and other income	93,714	146,528
Interest expense	2,722
Loss before provision for income tax benefit	(1,120)	(227,776)
Provision for income tax benefit	(400)	(79,700)
Net loss	$ (720)	$ (148,076)
Net loss per share-basic & diluted (in dollars per share)	$ 0	$ (0.03)
Weighted average shares outstanding (in shares)	5,160,971	5,160,971
Dividends paid	$ 877,365	$ 877,365

XML

Condensed Consolidated Statements Of Comprehensive Earnings (Current Period Unaudited) - USD ($)	3 Months Ended
	Oct. 02, 2016	Sep. 27, 2015
Net loss	$ (720)	$ (148,076)
Other comprehensive earnings-net of tax
Unrealized loss on available-for-sale securities net of tax benefit of $116,046 and $180,812	(187,618)	(293,762)
Reclassification adjustment for loss (gain) included in net loss, net of tax (benefit) of ($2,227) and $9,258	3,619	(15,041)
Comprehensive Loss	$ (184,719)	$ (456,879)

XML

Condensed Consolidated Statements Of Comprehensive Earnings (Current Period Unaudited) (Parentheticals) - USD ($)	3 Months Ended
	Oct. 02, 2016	Sep. 27, 2015
Unrealized loss on available-for-sale securities, tax	$ 116,046	$ 180,812
Reclassification adjustment for loss (gain), tax	$ (2,227)	$ 9,258

XML

Condensed Consolidated Balance Sheets (Current Period Unaudited) - USD ($)	Oct. 02, 2016	Jul. 03, 2016
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	571,487	986,193
Short-term investments	485,452	484,558
Inventories	591,287	561,217
Prepaid expenses and other	426,559	664,379
Income taxes refundable	187,060
TOTAL CURRENT ASSETS	2,261,845	2,696,347
LAND, BUILDINGS & EQUIPMENT, net of accumulated depreciation of $41,268,477 and $40,987,543	19,336,340	19,523,856
Marketable investment securities	8,540,728	8,824,456
Cash surrender value-life insurance	740,161	740,161
Other	66,315	66,315
TOTAL OTHER ASSETS	9,347,204	9,630,932
TOTAL ASSETS	30,945,389	31,851,135
Accounts payable	439,729	660,711
Accrued expenses	773,467	1,193,463
Dividends payable	877,365	877,365
Income taxes payable		207,840
Short-term note payable	500,000
Other current liabilities	940,073	325,982
Current deferred income taxes	27,850	27,850
TOTAL CURRENT LIABILITIES	3,558,484	3,293,211
LONG-TERM DEFERRED COMPENSATION	23,620	23,620
NONCURRENT DEFERRED INCOME TAXES	2,273,354	2,384,962
TOTAL LIABILITIES	5,855,458	5,701,793
COMMITMENTS AND CONTINGENCIES
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	2,805,261	2,986,587
Retained earnings	13,914,465	14,792,550
TOTAL STOCKHOLDERS' EQUITY	25,089,931	26,149,342
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY	$ 30,945,389	$ 31,851,135

XML

Condensed Consolidated Balance Sheets (Current Period Unaudited) (Parentheticals) - USD ($)	Oct. 02, 2016	Jul. 03, 2016
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
LAND, BUILDINGS & EQUIPMENT, accumulated depreciation	$ 41,268,477	$ 40,987,543
Preferred stock, shares authorized (in shares)	2,000,000	2,000,000
Preferred stock, par value (in dollars per share)	$ 10	$ 10
Common stock, par value (in dollars per share)	$ 0.10	$ 0.10
Common stock, shares authorized (in shares)	10,000,000	10,000,000

XML

Condensed Consolidated Statements of Cash Flows (Current Period Unaudited) - USD ($)	3 Months Ended
	Oct. 02, 2016	Sep. 27, 2015
Cash Flows From Operating Activities
Net loss	$ (720)	$ (148,076)
Adjustments to reconcile net loss to net cash provided by operating activities:
Depreciation and amortization	292,694	336,187
Loss on involuntary cancellation of available-for-sale securities	5,845
Gain on sale of available-for-sale securities		(24,299)
Changes in assets and liabilities
Increase in inventories	(30,070)	(62,507)
Decrease in prepaid & other	237,820	298,485
Increase in income taxes refundable	(187,060)	(26,000)
Increase in deferred tax asset		(79,700)
Decrease in accounts payable	(220,982)	(258,733)
Decrease in accrued expenses	(419,996)	(158,099)
Decrease in income taxes payable	(207,840)
Increase in other current liabilities	614,091	614,504
Net cash provided by operating activities	83,782	491,762
Cash Flows From Investing Activities
Expenditures for land, building and equipment	(105,178)	(19,381)
Net (purchases) sales & maturities of short-term investments	(894)	(12)
Proceeds from sale of available-for-sale securities		1,000,000
Net purchases of marketable securities	(15,051)	(18,578)
Net cash (used in) provided by investing activities	(121,123)	962,029
Cash Flows From Financing Activities
Proceeds from note payable	500,000
Payment of cash dividends	(877,365)	(877,365)
Net cash used in financing activities	(377,365)	(877,365)
Net Change in Cash and Equivalents	(414,706)	576,426
Cash and Cash Equivalents, Beginning of period	986,193	778,367
Cash and Cash Equivalents, End of period	571,487	1,354,793
Supplemental Disclosures of Cash Flow Information
Interest	2,722
Income taxes	$ 394,500	$ 26,000

XML

Note 1 - Basis for Presentations

3 Months Ended

Oct. 02, 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 July 3, 2016 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 July 3, 2016.

XML

Note 2 - Investments

3 Months Ended

Oct. 02, 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 October 2, 2016 and July 3, 2016 were as follows:

Octob er 2 , 201 6 Description	Fair Value		Cost basis		Unrealized Gain
Short-term investments	$	485,452	$	485,452	$	-
Equity securities	$	5,703,049	$	1,279,914	$	4,423,135
Mutual funds	$	2,837,679	$	2,728,910	$	108,769

Ju ly 3 , 201 6 Description	Fair Value		Cost basis		Unrealized Gain
Short-term investments	$	484,558	$	484,558	$	-
Equity securities	$	6,001,841	$	1,285,759	$	4,716,082
Mutual funds	$	2,822,615	$	2,713,860	$	108,755

The fair values of the Company’s investments were determined as follows:

October 2, 2016 Description	Quoted Price for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)
Certificates of deposits	$	-	$	485,452	$	-
Equity securities		5,703,049		-		-
Mutual funds		2,837,679		-		-
Total	$	8,540,728	$	485,452	$	-

July 3, 2016 Description	Quoted Price for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significan t Unobservable Inputs (Level 3)
Certificates of deposits	$	-	$	484,558	$	-
Equity securities		6,001,841		-		-
Mutual funds		2,822,615		-		-
Total	$	8,824,456	$	484,558	$	-

The equity securities portfolio includes the following stocks:

AT&T shares	82,112
Manulife shares	2,520
CSAL shares	815
NCR shares	774
Teradata shares	774
Vodafone shares	6,471
CenturyLink shares	4,398
Frontier Communications shares	4,508
Sprint shares	40,000
Verizon shares	31,904
Windstream shares	679

     On August 1, 2016, Dex Media, a spin off from Verizon, completed a financial restructure. Previous shares of Dex Media’s common stock were cancelled with no distribution to shareholders resulting in a loss of $5,845 on the Company’s holdings.

     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.

XML

Note 2 - Note Payable

3 Months Ended

Oct. 02, 2016

Notes to Financial Statements

Debt, Policy [Policy Text Block]

2. Note Payable

     In August 2016 the Company obtained a $500,000 short-term loan that matures in February 2017. The loan bears interest at the one month LIBOR rate plus 2.5% with interest only payable monthly. A portion of the loan is collateralized by certificates of deposits.

XML

Note 3 - Commitments and Contingencies

3 Months Ended

Oct. 02, 2016

Notes to Financial Statements

Commitments and Contingencies Disclosure [Text Block]

3.  Commitments and Contingencies

The Company’s purchase commitments at October 2, 2016, are for materials, supplies, services and equipment as part of the normal course of business.

XML

Note 4 - Employee Benefit Plans

3 Months Ended

Oct. 02, 2016

Notes to Financial Statements

Disclosure of Compensation Related Costs, Share-based Payments [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.

XML

Note 5 - New Accounting Standards

3 Months Ended

Oct. 02, 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

There were no new accounting pronouncements during the quarter ended October 2, 2016, that would impact the

Company.

XML

Note 6 - Subsequent Events

3 Months Ended

Oct. 02, 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 November 15, 2016, and has determined that no material subsequent events have occurred.

XML

Note 7 - Reclassifications

3 Months Ended

Oct. 02, 2016

Notes to Financial Statements

Reclassifications [Text Block]

7.  Reclassifications

Certain previous year amounts have been reclassified to conform with current year presentation.

XML

Significant Accounting Policies (Policies)

3 Months Ended

Oct. 02, 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 July 3, 2016 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 July 3, 2016.

XML

Note 2 - Investments (Tables)

3 Months Ended

Oct. 02, 2016

Notes Tables

Available-for-sale Securities [Table Text Block]

Octob er 2 , 201 6 Description	Fair Value		Cost basis		Unrealized Gain
Short-term investments	$	485,452	$	485,452	$	-
Equity securities	$	5,703,049	$	1,279,914	$	4,423,135
Mutual funds	$	2,837,679	$	2,728,910	$	108,769

Ju ly 3 , 201 6 Description	Fair Value		Cost basis		Unrealized Gain
Short-term investments	$	484,558	$	484,558	$	-
Equity securities	$	6,001,841	$	1,285,759	$	4,716,082
Mutual funds	$	2,822,615	$	2,713,860	$	108,755

Fair Value, Assets Measured on Recurring Basis [Table Text Block]

October 2, 2016 Description	Quoted Price for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)
Certificates of deposits	$	-	$	485,452	$	-
Equity securities		5,703,049		-		-
Mutual funds		2,837,679		-		-
Total	$	8,540,728	$	485,452	$	-

July 3, 2016 Description	Quoted Price for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significan t Unobservable Inputs (Level 3)
Certificates of deposits	$	-	$	484,558	$	-
Equity securities		6,001,841		-		-
Mutual funds		2,822,615		-		-
Total	$	8,824,456	$	484,558	$	-

Schedule Of Telecommunications Stocks Held [Table Text Block]

AT&T shares	82,112
Manulife shares	2,520
CSAL shares	815
NCR shares	774
Teradata shares	774
Vodafone shares	6,471
CenturyLink shares	4,398
Frontier Communications shares	4,508
Sprint shares	40,000
Verizon shares	31,904
Windstream shares	679

XML

Note 2 - Investments (Details Textual) - USD ($)		3 Months Ended
	Aug. 01, 2016	Oct. 02, 2016
Maximum [Member]
Short-term Investments Maturities Term		1 year
DexMedia [Member]
Available-for-sale Securities, Gross Realized Gain (Loss)	$ 5,845

XML

Note 2 - Investments - Investments Schedule (Details) - USD ($)	Oct. 02, 2016	Jul. 03, 2016
Short-term Investments [Member]
Fair Value	$ 485,452	$ 484,558
Cost basis	485,452	484,558
Unrealized Gain
Equity Securities [Member]
Fair Value	5,703,049	6,001,841
Cost basis	1,279,914	1,285,759
Unrealized Gain	4,423,135	4,716,082
Mutual Fund [Member]
Fair Value	2,837,679	2,822,615
Cost basis	2,728,910	2,713,860
Unrealized Gain	$ 108,769	$ 108,755

XML

Note 2 - Investments - Fair Value Hierarchy (Details) - USD ($)	Oct. 02, 2016	Jul. 03, 2016
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	485,452	484,558
Certificates of Deposit [Member] | Fair Value, Inputs, Level 3 [Member]
Quoted Price for Identical Assets
Equity Securities [Member] | Fair Value, Inputs, Level 1 [Member]
Quoted Price for Identical Assets	5,703,049	6,001,841
Equity Securities [Member] | Fair Value, Inputs, Level 2 [Member]
Quoted Price for Identical Assets
Equity Securities [Member] | Fair Value, Inputs, Level 3 [Member]
Quoted Price for Identical Assets
Mutual Funds [Member] | Fair Value, Inputs, Level 1 [Member]
Quoted Price for Identical Assets	2,837,679
Mutual Funds [Member] | Fair Value, Inputs, Level 2 [Member]
Quoted Price for Identical Assets
Mutual Fund [Member] | Fair Value, Inputs, Level 1 [Member]
Quoted Price for Identical Assets		2,822,615
Mutual Fund [Member] | Fair Value, Inputs, Level 2 [Member]
Quoted Price for Identical Assets
Mutual Fund [Member] | Fair Value, Inputs, Level 3 [Member]
Quoted Price for Identical Assets
Fair Value, Inputs, Level 1 [Member]
Quoted Price for Identical Assets	8,540,728	8,824,456
Fair Value, Inputs, Level 2 [Member]
Quoted Price for Identical Assets	485,452	484,558
Fair Value, Inputs, Level 3 [Member]
Quoted Price for Identical Assets
Quoted Price for Identical Assets	$ 8,540,728	$ 8,824,456

XML

Note 2 - Investments - Telecommunications Stocks Held (Details)	Oct. 02, 2016 shares
ATT [Member]
Investment (in shares)	82,112
Manulife [Member]
Investment (in shares)	2,520
CSAL [Member]
Investment (in shares)	815
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

XML

Note 2 - Note Payable (Details Textual) - USD ($)	Oct. 02, 2016	Aug. 31, 2016	Jul. 03, 2016
London Interbank Offered Rate (LIBOR) [Member]
Short-term Debt, Percentage Bearing Variable Interest Rate		2.50%
Short-term Debt	$ 500,000	$ 500,000

XML

Note 4 - Employee Benefit Plans (Details Textual)	3 Months Ended
	Oct. 02, 2016
Defined Contribution Plan Number of Plans	2