10-Q

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C. 20549

FORM  10-Q

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

FOR THE QUARTERLY PERIOD ENDED: April 2, 2017

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, a smaller reporting company, or an emerging growth company. See the definitions of “ large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.

Large Accelerated Filer __      Accelerated Filer __

Non-Accelerated Filer __      Smaller Reporting Company X      Emerging Growth Company __

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. __

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
	May 10, 2017
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				Thirty-nine Weeks Ended
	April 2,		March 27,		April 2,		March 27,
	2017		2016		2017		2016
Operating Revenues:
Bowling and other	$	5,298,395	$	5,236,678	$	13,254,733	$	12,876,763
Food, beverage and merchandise sales		2,192,397		2,184,589		5,534,939		5,470,696
Total Operating Revenues		7,490,792		7,421,267		18,789,672		18,347,459
Operating Expenses:
Employee compensation and benefits		2,782,206		2,764,045		8,200,918		8,247,146
Cost of bowling and other services		1,559,551		1,558,273		4,501,128		4,516,368
Cost of food, beverage and merchandise sales		631,312		607,830		1,690,770		1,640,210
Depreciation and amortization		260,568		334,572		828,460		1,009,354
General and administrative		236,785		300,079		678,126		763,448
Total Operating Expenses		5,470,422		5,564,799		15,899,402		16,176,526
Gain on sale of assets		34,376		-		34,376		-
Operating Income		2,054,746		1,856,468		2,924,646		2,170,933
Interest, dividend and other income		110,801		99,620		315,703		340,280
Interest expense		980		-		6,296		-
Earnings before provision for income taxes		2,164,567		1,956,088		3,234,053		2,511,213
Provision for income taxes		757,700		684,600		1,132,000		878,900
Net Earnings	$	1,406,867	$	1,271,488	$	2,102,053	$	1,632,313
Earnings per share-basic & diluted	$	.27	$	.25	$	.41	$	.32
NET EARNINGS PER SHARE	$	.27	$	.25	$	.41	$	.32
Weighted average shares outstanding		5,160,971		5,160,971		5,160,971		5,160,971
Dividends paid	$	877,365	$	877,365	$	2,632,095	$	2,632,095
Per share, dividends paid, Class A	$	.17	$	.17	$	.51	$	.51
Per share, dividends paid, Class B	$	.17	$	.17	$	.51	$	.51

The operating results for the thirteen (13) and thirty-nine (39) week periods ended April 2, 2017 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					Thirty-nine Weeks Ended
	April 2,			March 27,		April 2,			March 27,
	2017			2016		2017			2016
Net Earnings	$	1,406,867		$	1,271,488	$	2,102,053		$	1,632,313
Other comprehensive earnings- net of tax
Unrealized (loss) gain on available- for-sale securities net of tax (benefit) of ($81,372) and $223,370 for 13 weeks, and ($140,372) and $132,302 for 39 weeks		(132,005	)		362,900		(228,013	)		214,494
Reclassification adjustment for loss (gain) included in Net Income net of tax (benefit) of ($2,227) and $9,258		-			-		3,619			(15,041	)
Comprehensive earnings	$	1,274,862		$	1,634,388	$	1,877,659		$	1,831,766

The operating results for the thirteen (13) and thirty-nine (39) week periods ended April 2, 2017 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
	April 2,		July 3,
	2017		2016
ASSETS
CURRENT ASSETS:
Cash and cash equivalents	$	1,437,260	$	986,193
Short-term investments		1,455,275		484,558
Inventories		508,922		561,217
Prepaid expenses and other		546,505		664,379
TOTAL CURRENT ASSETS		3,947,962		2,696,347
LAND, BUILDINGS & EQUIPMENT
Net of accumulated depreciation of $41,305,837 and $40,987,543		18,927,970		19,523,856
OTHER ASSETS:
Marketable securities		8,522,841		8,824,456
Cash surrender value-life insurance		740,161		740,161
Other		66,315		66,315
TOTAL OTHER ASSETS		9,329,317		9,630,932
TOTAL ASSETS	$	32,205,249	$	31,851,135
LIABILITIES AND STOCKHOLDERS' EQUITY
CURRENT LIABILITIES:
Accounts payable	$	558,521	$	660,711
Accrued expenses		759,279		1,193,463
Dividends payable		877,365		877,365
Income taxes payable		73,077		207,840
Other current liabilities		2,243,856		325,982
Current deferred income taxes		27,850		27,850
TOTAL CURRENT LIABILITIES		4,539,948		3,293,211
LONG-TERM DEFERRED COMPENSATION		23,620		23,620
NONCURRENT DEFERRED INCOME TAXES		2,246,775		2,384,962
TOTAL LIABILITIES		6,810,343		5,701,793
COMMITMENTS AND CONTINGENCIES (Note 3)
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		2,762,193		2,986,587
Retained earnings		14,262,508		14,792,550
TOTAL STOCKHOLDERS' EQUITY		25,394,906		26,149,342
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY	$	32,205,249	$	31,851,135

See notes to condensed consolidated financial statements.

4

BOWL AMERICA INCORPORATED AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS  OF CASH FLOWS

(Unaudited)

	Thirty-nine Weeks Ended
	April 2,			March 27,
	2017			2016
Cash Flows From Operating Activities
Net earnings	$	2,102,053		$	1,632,313
Adjustments to reconcile net earnings to net cash provided by operating activities:
Depreciation and amortization		828,460			1,009,354
Gain on sale of assets		(34,376	)		-
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
Decrease in inventories		52,295			67,330
Decrease in prepaid & other		117,874			169,928
Decrease in income taxes refundable		-			51,309
(Decrease) increase in accounts payable		(102,190	)		160,234
Decrease in accrued expenses		(434,184	)		(183,784	)
(Decrease) increase in income taxes payable		(134,763	)		196,565
Increase in other current liabilities		1,917,874			2,095,891
Net cash provided by operating activities		4,318,888			5,174,841
Cash Flows From Investing Activities
Expenditures for land, building and equip		(238,948	)		(234,586	)
Sale of assets		40,750			-
Net purchases of short-term investments		(970,717	)		(66	)
Proceeds from sale of available-for-sale securities		-			1,000,000
Purchases of marketable securities		(66,811	)		(54,791	)
Net cash (used in) provided by Investing activities		( 1,235,726	)		710,557
Cash Flows From Financing Activities
Proceeds from note payable		500,000			-
Payment of note payable		(500,000	)		-
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		451,067			3,253,303
Cash and Equivalents, Beginning of period		986,193			778,367
Cash and Equivalents, End of period	$	1,437,260		$	4,031,670
Supplemental Disclosures of Cash Flow Information
Cash Paid During the Period for:
Interest	$	6,296		$	-
Income taxes	$	1,266,763		$	606,026

See notes to condensed consolidated financial information.

5

BOWL AMERICA INCORPORATED AND SUBSIDIARIES

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

For the Thirteen and Thirty-nine Weeks Ended

April 2, 2017

(Unaudited)

1.  Basis for Presentation

The accompanying unaudited condensed consolidated financial statements of Bowl America Incorporated and subsidiaries (collectively, 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 April 2, 2017 and July 3, 2016 were as follows:

April 2, 2017 Description	Fair Value		Cost basis		Unrealized Gain/ (loss)
Short-term investments	$	1,455,275	$	1,455,275	$	-
Equity securities	$	5,727,527	$	1,279,914	$	4,447,613
Mutual fund	$	2,795,314	$	2,780,671	$	14,643
July 3, 2016 Description	Fair Value		Cost basis		Unrealized Gain (loss)
Short-term investments	$	484,558	$	484,558	$	-
Equity securities	$	6,001,841	$	1,285,759	$	4,716,082
Mutual fund	$	2,822,615	$	2,713,860	$	108,755

6

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

April 2, 2017 Description	Quoted Price for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)
Certificates of deposits	$	-	$	1,455,275	$	-
Equity securities		5,727,527		-		-
Mutual fund		2,795,314		-		-
Total	$	8,522,841	$	1,455,275	$	-

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 fund		2,822,615		-		-
Total	$	8,824,456	$	484,558	$	-

The shares of common stock included in the equity securities portfolio as of April 2, 2017 were:

AT&T shares	82,112
Manulife shares	2,520
Uniti Group shares (formerly CSAL)	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.

       Communications Sales & Leasing Inc (“CSAL”) changed its corporate name to Uniti Group Inc (“UNIT”) effective February 27, 2017.

       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.

3. Note Payable

       In August 2016, the Company obtained a $500,000 short-term loan that was due in February 2017. The loan interest was at the one month LIBOR rate plus 2.5% with interest only payable monthly. A portion of the loan was collateralized by certificates of deposits. The loan was paid in full on January 6, 2017.

4. Commitments and Contingencies

       The Company’s purchase commitments at April 2, 2017 are for materials, supplies, services and equipment as part of the normal course of business.

7

5.  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 post-retirement plan.

6. 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 April 2, 2017, that would impact the Company.

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 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 (“GNMA”) 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 shares of common stock 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 from one insurance company acquired at no cost when that company demutualized. While not all shares 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 an exclusion from federal taxable income. The dividends 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 April 2, 2017 was approximately $5,728,000 and on July 3, 2016 was approximately $6,002,000.

The Company’s original investment in the Vanguard GNMA mutual 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 April 2, 2017, the value was approximately $2,795,000.

Short-term investments consisting mainly of Certificates of Deposits, and cash and cash equivalents totaled $2,893,000 at the end of the fiscal third quarter of 2017 compared to $1,471,000 at July 3, 2016.

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 was collateralized by certificates of deposits. Interest was due and paid monthly and was based on the one-month LIBOR rate plus 2.5%. The loan was repaid in full on January 6, 2017.

In the nine-month period ended April 2, 2017, the Company expended approximately $239,000 for the purchase of building, entertainment and restaurant equipment. In the quarter ended March 2017 the Company signed an agreement with a third party vendor to take over operations of its amusement games. The vendor is purchasing all of the Company’s games, the majority of which are fully depreciated, and replacing them, at their expense, with new games. As of March 27, 2017, the Company had received approximately $39,000 for the games sold to that point. The agreement is for a one year period and the Company will receive a flat fee that exceeds the Company’s annual net profit on those games in recent years. The Company has no long-term debt and 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.

9

The nine-month decreases in the categories of Prepaid expenses and other, Accounts Payable and Accrued Expenses are primarily due to seasonal timing of payments including compensation, insurance and taxes and for contributions to benefit plans.

Current liabilities generally increase during the first three quarters of the fiscal year as 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 April 2, 2017, league deposits of approximately $1,907,000 were included in the current liabilities category.

Cash flow provided by operating activities in the thirty-nine weeks ended April 2, 2017 was $4,319,000 which, along with cash on hand, and a note in the amount of $500,000, mentioned above, 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 quarter ended April 2, 2017, and the nine months total was approximately $2,632,000 or $.51 per share.   In March 2017 the Company declared a regular quarterly dividend of $.17 per share, payable May 16, 2017 to shareholders of record on April 20, 2017. 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 and trends 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 is perceived as unsteady, 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 decreases in government spending or other downsizing of the federal government. Current economic conditions continue to create challenging times but our response will be helped by having the resources to be able to promote the sport.

RESULTS OF OPERATIONS

The following tables set forth the items in our consolidated summary of operations for the fiscal quarters and year-to-date periods ended April 2, 2017, and March 27, 2016, and the dollar and percentage changes therein.

	Thirteen weeks ended
	April 2, 2017 and March 27, 2016
	Dollars in thousands
	2017		2016		Change			% Change
Operating Revenues:
Bowling and other	$	5,299	$	5,237	$	62			1.2
Food, beverage and merchandise sales		2,192		2,185		7			0.3
Total Operating Revenue		7,491		7,422		69			0.9
Operating Expenses:
Employee Compensation and benefits		2,782		2,764		18			0.7
Cost of bowling and other services		1,560		1,559		1			0.0
Cost of food, beverage and merchandise sales		631		607		24			4.0
Depreciation and amortization		260		334		(74	)		(22.2	)
General and administrative		237		301		(64	)		(21.3	)
Total Operating Expenses		5,470		5,565		(95	)		(1.7	)
Gain on sale of assets		34		-		34			100.0
Operating Income		2,055		1,857		198			10.7
Interest, dividend and other income		111		99		12			12.1
Interest expense		1		-		1			100.0
Earnings before taxes		2,165		1,956		209			10.7
Income taxes		758		685		73			10.7
Net Earnings	$	1,407		1,271		136			10.7

10

	Thirty-nine weeks ended
	April 2, 2017 and March 27, 2016
	Dollars in thousands
	2017		2016		Change			% Change
Operating Revenues:
Bowling and other	$	13,255	$	12,877	$	378			2.9
Food, beverage and merchandise sales		5,535		5,471		64			1.2
Total Operating Revenues		18,790		18,348		442			2.4
Operating Expenses:
Employee Compensation and benefits		8,201		8,247		(46	)		(0.6	)
Cost of bowling and other services		4,501		4,517		(16	)		(0.4	)
Cost of food, beverage and merchandise sales		1,691		1,640		51			3.1
Depreciation and amortization		828		1,009		(181	)		(17.9	)
General and administrative		678		764		(86	)		(11.3	)
Total Operating Expenses		15,899		16,177		(278	)		(1.7	)
Gain on sales of assets		34		-		34			100.0
Operating income		2,925		2,171		754			34.7
Interest, dividend and other income		315		340		(25	)		(7.4	)
Interest expense		6		-		6			100.0
Earnings before taxes		3,234		2,511		723			28.8
Income taxes		1,132		879		253			28.8
Net Earnings	$	2,102	$	1,632	$	470			28.8

Earnings were $1,406,867 or $.27 per share for the thirteen week period and $2,102,053, or $.41 per share for the thirty-nine week periods ended April 2, 2017. For the thirteen-week and thirty-nine periods ended March 27, 2016, net earnings were $1,271,488 or $.25 per share and $1,632,313 or $.32 per share, respectively. Eighteen centers were in operation in both the current and prior year quarters. The current year quarter included unusually warm winter weather although a mid-March storm caused the postponement of some league games. Last year’s comparable quarter included the “Blizzard of 2016” which resulted in the closure of all northern market locations for up to 3 days. The holiday week between Christmas and New Year’s Day which typically falls in the third fiscal quarter fell in the fiscal second quarter this year. The operating results for fiscal 2017 periods included in this report are not necessarily indicative of results to be expected for the year.

                Operating Revenues

Total operating revenues increased $69,000 to $7,491,000 in the most recent quarter compared to a decline of $94,000 to $7,422,000 in the three-month period ended March 27, 2016.  The current fiscal nine month period operating revenues were up $442,000 versus an increase of $232,000 in the comparable nine month period a year ago.  Bowling and other revenue increased $62,000 in the quarter and $378,000 year-to-date for the periods ended April 2, 2017 versus a decline of $70,000 in the quarter and an increase of $65,000 for the nine-month period ended March 27, 2016.

Food, beverage and merchandise sales increased $7,000 or 0.3% in the current year quarter and were up $64,000 or 1.2% in the nine-month period.  Cost of sales increased 4.0% in the fiscal three months and 3.1% in the nine month periods ended April 2,

2017.

                Operating Expenses

Operating expenses were down $95,000 and $278,000 or 1.7% in both the current three month and nine-month period versus a decrease of  $116,000 or 2% and $104,000 or 0.6% in the three and nine month periods, respectively, last year.  Employee compensation and benefits for the fiscal 2017 third quarter were up $18,000 or 0.7% and were down $46,000 or 0.6% in the nine month period. In the comparable prior year three and nine month periods ended March 27, 2016 there were decreases of $81,000 or 2.9% and $93,000 or 1.1%, respectively. Group health insurance costs for the current nine month period decreased 7.6% as a result of changes in plan offerings and 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 was flat and decreased $16,000 or 0.4% in the three month and nine month periods ended April 2, 2017, respectively. In the thirty-nine weeks ended April 2, 2017, maintenance and repair costs declined $25,000 or 3.7% primarily due to lower snow removal costs in the current year. Advertising costs during the current year thirty-nine week period ended April 2, 2017, were up $3,000 or 1.3%.

11

11

For the fiscal nine-month period ended April 2, 2017 utility costs were up $10,000 or 1.0 % primarily a result of higher utility taxes. Supplies and services expenses were down $5,000 or 0.8% in the current year nine-month period and were up slightly in the comparable period in the prior year. While most supply costs were higher, the decline in amusement game supplies throughout the current nine month period more than offset the increases.

Insurance expense excluding health insurance decreased 3.0% in the current year-to-date period versus a decrease of 9.0% in last year’s comparable period.

Depreciation and amortization expense was down 17.9% in the current nine-month period the result of a large group of assets reaching full depreciation.

The Company recorded a $34,000 gain on the sale of some of its amusement games as it transitions from owning games to receiving income from a third party vendor as described above.

As a result of the above, the nine-month period of fiscal 2017 resulted in operating income of $2,924,646 compared to operating income of $2,170,933 in the prior year comparable nine-month period.

                Interest, Dividend and Other Income

Interest, dividend and other income decreased $25,000 in the fiscal 2017 nine-month period and decreased $35,000 in the comparable 2016 year-to-date period, respectively. The decrease in both years relates primarily to decreases in ancillary income.

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.

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 April 2, 2017. 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 April 2, 2017, 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 May 16, 2017 (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 and thirty-nine weeks ended April 2, 2017 in eXtensible Business Reporting Language

13

SIGNATURES

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: May 16, 2017	By:  /s/ Leslie H Goldberg
	Leslie H. Goldberg, President
Date: May 16, 2017	By:  /s/ Cheryl A Dragoo
	Cheryl A. Dragoo, CFO

14

EX-20

Exhibit 20  Press release issued May 16, 2016

For Immediate Release  May 16, 2016

BOWL AMERICA REPORTS IMPROVED THIRD QUARTER EARNINGS

Bowl America Incorporated today reported that earnings per share for its fiscal 2017 third quarter ended April 2, 2017, were $.27 compared to $.25 in the prior year period. Earnings for the current nine-month period were $.41 per share, an increase of $.09 per share from the prior year’s $.32.

Last year’s third quarter was negatively impacted by the “Blizzard of 2016” which caused the weekend closure of our northern market centers and resulted in high snow removal costs. Winter weather in this year’s third quarter was of lesser impact.

The fourth quarter results are unlikely to match last year’s as fiscal 2016 was a 53-week accounting year with the extra week added to the fourth quarter which included one more week of winter league bowling than will occur in this year’s fourth quarter.

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				Thirty-nine weeks ended
	April 2,		March 27,		April 2,		March 27,
	2017		2016		2017		2016
Revenues
Bowling and other	$	5,298,395	$	5,236,678	$	13,254,733	$	12,876,763
Food, beverage & merchandise sales		2,192,397		2,184,589		5,534,939		5,470,696
		7,490,792		7,421,267		18,789,672		18,347,459
Operating expenses excluding depreciation and amortization		5,209,854		5,230,227		15,070,942		15,167,172
Depreciation and amortization		260,568		334,572		828,460		1,009,354
Gain on sale of assets		34,376		-		34,376		-
Interest & dividend income		110,801		99,620		315,703		340,280
Interest expense		980		-		6,296		-
Earnings before taxes		2,164,567		1,956,088		3,234,053		2,511,213
Net Earnings	$	1,406,867	$	1,271,488	$	2,102,053	$	1,632,313
Comprehensive earnings	$	1,274,862	$	1,634,388	$	1,877,659	$	1,831,766
Weighted average shares outstanding		5,160,971		5,160,971		5,160,971		5,160,971
EARNINGS PER SHARE		.27		.25		.41		.32

SUMMARY OF FINANCIAL POSITION

(unaudited)

Dollars in Thousands

	04/02/17		03/27/16
ASSETS
Total current assets including cash andshort-term investments of $2,893 & $4,165	$	3,948	$	4,969
Property and investments		28,257		28,685
TOTAL ASSETS	$	32,205	$	33,654
LIABILITIES AND STOCKHOLDERS' EQUITY
Total current liabilities	$	4,540	$	5,157
Other liabilities		2,270		2,323
Stockholders' equity		25,395		26,174
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY	$	32,205	$	33,654

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 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: May 16, 2017	/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 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 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: May 16, 2017	/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 April 2, 2017 (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: May 16, 2017

XML

Document And Entity Information - shares	9 Months Ended
	Apr. 02, 2017	May 10, 2017
Document Information [Line Items]
Entity Registrant Name	BOWL AMERICA INC
Entity Central Index Key	0000013573
Trading Symbol	bwla
Current Fiscal Year End Date	--07-02
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	Apr. 02, 2017
Document Fiscal Year Focus	2017
Document Fiscal Period Focus	Q3
Amendment Flag	false
Common Class A [Member]
Document Information [Line Items]
Entity Common Stock, Shares Outstanding (in shares)		3,746,454
Common Class B [Member]
Document Information [Line Items]
Entity Common Stock, Shares Outstanding (in shares)		1,414,517

XML

Condensed Consolidated Statements of Earnings (Unaudited) - USD ($)	3 Months Ended		9 Months Ended
	Apr. 02, 2017	Mar. 27, 2016	Apr. 02, 2017	Mar. 27, 2016
Operating Revenues:
Bowling and other	$ 5,298,395	$ 5,236,678	$ 13,254,733	$ 12,876,763
Food, beverage and merchandise sales	2,192,397	2,184,589	5,534,939	5,470,696
Total Operating Revenues	7,490,792	7,421,267	18,789,672	18,347,459
Operating Expenses:
Employee compensation and benefits	2,782,206	2,764,045	8,200,918	8,247,146
Cost of bowling and other services	1,559,551	1,558,273	4,501,128	4,516,368
Cost of food, beverage and merchandise sales	631,312	607,830	1,690,770	1,640,210
Depreciation and amortization	260,568	334,572	828,460	1,009,354
General and administrative	236,785	300,079	678,126	763,448
Total Operating Expenses	5,470,422	5,564,799	15,899,402	16,176,526
Gain on sale of assets	34,376		34,376
Operating Income	2,054,746	1,856,468	2,924,646	2,170,933
Interest, dividend and other income	110,801	99,620	315,703	340,280
Interest expense	980		6,296
Earnings before provision for income taxes	2,164,567	1,956,088	3,234,053	2,511,213
Provision for income taxes	757,700	684,600	1,132,000	878,900
Net Earnings	$ 1,406,867	$ 1,271,488	$ 2,102,053	$ 1,632,313
Earnings per share-basic & diluted (in dollars per share)	$ 0.27	$ 0.25	$ 0.41	$ 0.32
NET EARNINGS PER SHARE (in dollars per share)	$ 0.27	$ 0.25	$ 0.41	$ 0.32
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
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

XML

Condensed Consolidated Statements Of Comprehensive Earnings (Unaudited) - USD ($)	3 Months Ended		9 Months Ended
	Apr. 02, 2017	Mar. 27, 2016	Apr. 02, 2017	Mar. 27, 2016
Net earnings	$ 1,406,867	$ 1,271,488	$ 2,102,053	$ 1,632,313
Other comprehensive earnings- net of tax
Unrealized (loss) gain on available- for-sale securities net of tax (benefit) of ($81,372) and $223,370 for 13 weeks, and ($140,372) and $132,302 for 39 weeks	(132,005)	362,900	(228,013)	214,494
Reclassification adjustment for loss (gain) included in Net Income net of tax (benefit) of ($2,227) and $9,258			3,619	(15,041)
Comprehensive earnings	$ 1,274,862	$ 1,634,388	$ 1,877,659	$ 1,831,766

XML

Condensed Consolidated Statements Of Comprehensive Earnings (Unaudited) (Parentheticals) - USD ($)	3 Months Ended		9 Months Ended
	Apr. 02, 2017	Mar. 27, 2016	Apr. 02, 2017	Mar. 27, 2016
Unrealized gain (loss) on available-for-sale securities, tax	$ (81,372)	$ 223,370	$ (140,372)	$ 132,302
Reclassification adjustment for loss (gain), tax			$ (2,227)	$ 9,258

XML

Condensed Consolidated Balance Sheets (Current Period Unaudited) - USD ($)	Apr. 02, 2017	Jul. 03, 2016
CURRENT ASSETS:
Cash and cash equivalents	$ 1,437,260	$ 986,193
Short-term investments	1,455,275	484,558
Inventories	508,922	561,217
Prepaid expenses and other	546,505	664,379
TOTAL CURRENT ASSETS	3,947,962	2,696,347
LAND, BUILDINGS & EQUIPMENT Net of accumulated depreciation of $41,305,837 and $40,987,543	18,927,970	19,523,856
OTHER ASSETS:
Marketable securities	8,522,841	8,824,456
Cash surrender value-life insurance	740,161	740,161
Other	66,315	66,315
TOTAL OTHER ASSETS	9,329,317	9,630,932
TOTAL ASSETS	32,205,249	31,851,135
CURRENT LIABILITIES:
Accounts payable	558,521	660,711
Accrued expenses	759,279	1,193,463
Dividends payable	877,365	877,365
Income taxes payable	73,077	207,840
Other current liabilities	2,243,856	325,982
Current deferred income taxes	27,850	27,850
TOTAL CURRENT LIABILITIES	4,539,948	3,293,211
LONG-TERM DEFERRED COMPENSATION	23,620	23,620
NONCURRENT DEFERRED INCOME TAXES	2,246,775	2,384,962
TOTAL LIABILITIES	6,810,343	5,701,793
COMMITMENTS AND CONTINGENCIES (Note 3)
STOCKHOLDERS' EQUITY
Preferred stock, par value $10 a share: Authorized and unissued, 2,000,000 shares	0	0
Additional paid-in capital	7,854,108	7,854,108
Unrealized gain on available-for-sale securities, net of tax	2,762,193	2,986,587
Retained earnings	14,262,508	14,792,550
TOTAL STOCKHOLDERS' EQUITY	25,394,906	26,149,342
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY	32,205,249	31,851,135
Common Class A [Member]
STOCKHOLDERS' EQUITY
Common Stock	374,645	374,645
Common Class B [Member]
STOCKHOLDERS' EQUITY
Common Stock	$ 141,452	$ 141,452

XML

Condensed Consolidated Balance Sheets (Current Period Unaudited) (Parentheticals) - USD ($)	Apr. 02, 2017	Jul. 03, 2016
Land, buildings, and equipment, accumulated depreciation	$ 41,305,837	$ 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
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

XML

Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($)	9 Months Ended
	Apr. 02, 2017	Mar. 27, 2016
Cash Flows From Operating Activities
Net earnings	$ 2,102,053	$ 1,632,313
Adjustments to reconcile net earnings to net cash provided by operating activities:
Depreciation and amortization	828,460	1,009,354
Gain on sale of assets	(34,376)
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
Decrease in inventories	52,295	67,330
Decrease in prepaid & other	117,874	169,928
Decrease in income taxes refundable		51,309
(Decrease) increase in accounts payable	(102,190)	160,234
Decrease in accrued expenses	(434,184)	(183,784)
(Decrease) increase in income taxes payable	(134,763)	196,565
Increase in other current liabilities	1,917,874	2,095,891
Net cash provided by operating activities	4,318,888	5,174,841
Cash Flows From Investing Activities
Expenditures for land, building and equip	(238,948)	(234,586)
Sale of assets	40,750
Net purchases of short-term investments	(970,717)	(66)
Proceeds from sale of available-for-sale securities		1,000,000
Purchases of marketable securities	(66,811)	(54,791)
Net cash (used in) provided by Investing activities	(1,235,726)	710,557
Cash Flows From Financing Activities
Proceeds from note payable	500,000
Payment of note payable	(500,000)
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	451,067	3,253,303
Cash and Equivalents, Beginning of period	986,193	778,367
Cash and Equivalents, End of period	1,437,260	4,031,670
Supplemental Disclosures of Cash Flow Information Cash Paid During the Period for:
Interest	6,296
Income taxes	$ 1,266,763	$ 606,026

XML

Note 1 - Basis for Presentation

9 Months Ended

Apr. 02, 2017

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 (collectively, 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

9 Months Ended

Apr. 02, 2017

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

April

2,

2017

and

July

3,

2016

were as follows:

April 2 , 201 7 Description	Fair Value		Cost basis		Unrealized Gain/ (loss)
Short-term investments	$	1,455,275	$	1,455,275	$	-
Equity securities	$	5,727,527	$	1,279,914	$	4,447,613
Mutual fund	$	2,795,314	$	2,780,671	$	14,643
Ju ly 3, 201 6 Description	Fair Value		Cost basis		Unrealized Gain (loss)
Short-term investments	$	484,558	$	484,558	$	-
Equity securities	$	6,001,841	$	1,285,759	$	4,716,082
Mutual fund	$	2,822,615	$	2,713,860	$	108,755

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

April 2, 2017 Description	Quoted Price for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)
Certificates of deposits	$	-	$	1,455,275	$	-
Equity securities		5,727,527		-		-
Mutual fund		2,795,314		-		-
Total	$	8,522,841	$	1,455,275	$	-

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 fund		2,822,615		-		-
Total	$	8,824,456	$	484,558	$	-

The shares of common stock included in the equity securities portfolio as of

April

2,

2017

were:

AT&T shares	82,112
Manulife shares	2,520
Uniti Group shares (formerly CSAL)	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.

       Communications Sales & Leasing Inc (“CSAL”) changed its corporate name to Uniti Group Inc (“UNIT”) effective

February

27,

2017.

       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 3 - Note Payable

9 Months Ended

Apr. 02, 2017

Notes to Financial Statements

Debt Disclosure [Text Block]

3.

Note Payable

       In

August

2016,

the Company obtained a

$500,000

short-term loan that was due in

February

2017.

The loan interest was at the

one

month LIBOR rate plus

2.5%

with interest only payable monthly. A portion of the loan was collateralized by certificates of deposits. The loan was paid in full on

January

6,

2017.

XML

Note 4 - Commitments and Contingencies

9 Months Ended

Apr. 02, 2017

Notes to Financial Statements

Commitments and Contingencies Disclosure [Text Block]

4.

Commitments and Contingencies

       The Company’s purchase commitments at

April

2,

2017

are for materials, supplies, services and equipment as part of the normal course of business.

XML

Note 5 - Employee Benefit Plans

9 Months Ended

Apr. 02, 2017

Notes to Financial Statements

Disclosure of Compensation Related Costs, Share-based Payments [Text Block]

5.

  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 post-retirement plan.

XML

Note 6 - New Accounting Standards

9 Months Ended

Apr. 02, 2017

Notes to Financial Statements

New Accounting Pronouncements and Changes in Accounting Principles [Text Block]

6.

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

April

2,

2017,

that would impact the

Company.

XML

Note 7 - Reclassifications

9 Months Ended

Apr. 02, 2017

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)

9 Months Ended

Apr. 02, 2017

Accounting Policies [Abstract]

Basis of Accounting, Policy [Policy Text Block]

The accompanying unaudited condensed consolidated financial statements of Bowl America Incorporated and subsidiaries (collectively, 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.

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

XML

Note 2 - Investments (Tables)

9 Months Ended

Apr. 02, 2017

Notes Tables

Available-for-sale Securities [Table Text Block]

April 2 , 201 7 Description	Fair Value		Cost basis		Unrealized Gain/ (loss)
Short-term investments	$	1,455,275	$	1,455,275	$	-
Equity securities	$	5,727,527	$	1,279,914	$	4,447,613
Mutual fund	$	2,795,314	$	2,780,671	$	14,643
Ju ly 3, 201 6 Description	Fair Value		Cost basis		Unrealized Gain (loss)
Short-term investments	$	484,558	$	484,558	$	-
Equity securities	$	6,001,841	$	1,285,759	$	4,716,082
Mutual fund	$	2,822,615	$	2,713,860	$	108,755

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

April 2, 2017 Description	Quoted Price for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)
Certificates of deposits	$	-	$	1,455,275	$	-
Equity securities		5,727,527		-		-
Mutual fund		2,795,314		-		-
Total	$	8,522,841	$	1,455,275	$	-

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 fund		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
Uniti Group shares (formerly CSAL)	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 ($)		9 Months Ended
	Aug. 01, 2016	Apr. 02, 2017
DexMedia [Member]
Available-for-sale Securities, Gross Realized Gain (Loss)	$ 5,845
Maximum [Member]
Short-term Investments Maturities Term		1 year

XML

Note 2 - Investments - Investments Schedule (Details) - USD ($)	Apr. 02, 2017	Jul. 03, 2016
Short-term Investments [Member]
Fair Value	$ 1,455,275	$ 484,558
Cost Basis	1,455,275	484,558
Unrealized Gain
Equity Securities [Member]
Fair Value	5,727,527	6,001,841
Cost Basis	1,279,914	1,285,759
Unrealized Gain	4,447,613	4,716,082
Mutual Fund [Member]
Fair Value	2,795,314	2,822,615
Cost Basis	2,780,671	2,713,860
Unrealized Gain	$ 14,643	$ 108,755

XML

Note 2 - Investments - Fair Value Hierarchy (Details) - USD ($)	Apr. 02, 2017	Jul. 03, 2016
Quoted Price for Identical Assets	$ 8,522,841	$ 8,824,456
Fair Value, Inputs, Level 1 [Member]
Quoted Price for Identical Assets	8,522,841	8,824,456
Fair Value, Inputs, Level 2 [Member]
Quoted Price for Identical Assets	1,455,275	484,558
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	1,455,275	484,558
Equity Securities [Member] | Fair Value, Inputs, Level 1 [Member]
Quoted Price for Identical Assets	5,727,527	6,001,841
Equity Securities [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	2,795,314	2,822,615
Mutual Fund [Member] | Fair Value, Inputs, Level 2 [Member]
Quoted Price for Identical Assets

XML

Note 2 - Investments - Telecommunications Stocks Held (Details)	Apr. 02, 2017 shares
ATT [Member]
Investment (in shares)	82,112
Manulife [Member]
Investment (in shares)	2,520
Unit Group Shares [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 3 - Note Payable (Details Textual)	Aug. 31, 2016 USD ($)
Short-term Debt	$ 500,000
London Interbank Offered Rate (LIBOR) [Member]
Short-term Debt, Percentage Bearing Variable Interest Rate	2.50%

XML

Note 5 - Employee Benefit Plans (Details Textual)	9 Months Ended
	Apr. 02, 2017
Defined Contribution Plan Number of Plans	2