-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: webmaster@www.sec.gov Originator-Key-Asymmetric: MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB MIC-Info: RSA-MD5,RSA, OLVL/RN0I3Unscwxmt8+kMlU+SDNMkbYoL0DSSud5lPb6rpynw/AUah/MccdyQot fyhxol4U+5jzAGccXIeH1A== 0000893220-96-001189.txt : 19960718 0000893220-96-001189.hdr.sgml : 19960718 ACCESSION NUMBER: 0000893220-96-001189 CONFORMED SUBMISSION TYPE: 10-Q PUBLIC DOCUMENT COUNT: 3 CONFORMED PERIOD OF REPORT: 19960602 FILED AS OF DATE: 19960717 SROS: NONE FILER: COMPANY DATA: COMPANY CONFORMED NAME: HANOVER FOODS CORP /PA/ CENTRAL INDEX KEY: 0000853733 STANDARD INDUSTRIAL CLASSIFICATION: CANNED, FRUITS, VEG & PRESERVES, JAMS & JELLIES [2033] IRS NUMBER: 230670710 STATE OF INCORPORATION: PA FISCAL YEAR END: 0331 FILING VALUES: FORM TYPE: 10-Q SEC ACT: 1934 Act SEC FILE NUMBER: 000-17896 FILM NUMBER: 96595972 BUSINESS ADDRESS: STREET 1: 1486 YORK ST STREET 2: PO BOX 334 CITY: HANOVER STATE: PA ZIP: 17331 BUSINESS PHONE: 7176326000 MAIL ADDRESS: STREET 1: 1486 YORK STREET STREET 2: P O BOX 334 CITY: HANOVER STATE: PA ZIP: 17331 FORMER COMPANY: FORMER CONFORMED NAME: HANOVER BRANDS INC /PA/ DATE OF NAME CHANGE: 19900815 10-Q 1 FORM 10-Q HANOVER FOODS CORPORATION 1 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 OR X TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE - ---------- SECURITIES EXCHANGE ACT OF 1934 For the Transition Period from April 1, 1996 to June 2, 1996 Commission File Number --0-17896 HANOVER FOODS CORPORATION (Exact name of Registrant as specified in its charter) Commonwealth of Pennsylvania 23-0670710 (Jurisdiction of Incorporation) (I.R.S. Employer Identification No.) 1486 York Road, P.O. Box 334, Hanover, PA 17331 (Address of principal executive offices) (Zip Code) Registrant's telephone number: 717-632-6000 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, and (2) has been subject to such filing for the past 90 days. Yes X No ------- ------- Indicate the number of shares outstanding of issuer's classes of common stock as of the latest practicable date.
Class Outstanding at June 2, 1996 ----- --------------------------- Class A Common Stock, $25 par value 294,824 shares Class B Common Stock, $25 par value 427,350 shares
2 HANOVER FOODS CORPORATION AND SUBSIDIARIES FORM 10-Q For the Nine Weeks Ended June 2, 1996
Index Page Part I - Financial Information Item 1 -- Financial Statements: Condensed Consolidated Balance Sheets June 2, 1996 (Unaudited) and March 31, 1996 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3 Condensed Consolidated Statements of Operations (Unaudited), Nine weeks ended June 2, 1996 and June 4, 1995 . . . . . . . . . . . . . . . . . . . . . 5 Condensed Consolidated Statements of Stockholders' Equity periods ended June 2, 1996 (Unaudited) and March 31, 1996 . . . . . . . . . . . . . . . . . . . . . . . 6 Condensed Consolidated Statements of Cash Flows (Unaudited), Nine weeks ended June 2, 1996 and June 4, 1995 . . . . . . . . . . . . . . . . . . . . . 7 Notes to Condensed Consolidated Financial Statements (Unaudited) . . . . . . . . . . . . . . . 8 Item 2 -- Management's Discussion and Analysis of Financial Condition and Results of Operations . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12 Part II -- Other Information Item 6 -- Exhibits and Reports on Form 8-K . . . . . . . . . . . . . . . . . . . . . . . . . . . 14
3 PART I -- FINANCIAL INFORMATION Item 1. Financial Statements HANOVER FOODS CORPORATION AND SUBSIDIARIES Condensed Consolidated Balance Sheets (Unaudited)
============================================================================== June 2, March 31, ASSETS 1996 1996 - ------------------------------------------------------------------------------ Current assets: Cash and short-term cash investments $ 1,112,000 914,000 Accounts and notes receivable, net 17,249,000 25,216,000 Accounts receivable from related parties, net 61,000 18,000 Inventories 47,067,000 47,157,000 Prepaid corporate income taxes 581,000 541,000 Prepaid expenses 1,796,000 1,294,000 Deferred income taxes 885,000 885,000 - ------------------------------------------------------------------------------ Total current assets 68,751,000 76,025,000 - ------------------------------------------------------------------------------ Property, plant, and equipment, at cost: Land and buildings 32,115,000 31,847,000 Machinery and equipment 77,399,000 77,210,000 Leasehold improvements 349,000 349,000 - ------------------------------------------------------------------------------ 109,863,000 109,406,000 Less accumulated depreciation and amortization 61,273,000 60,262,000 - ------------------------------------------------------------------------------ 48,590,000 49,144,000 Construction in progress 176,000 61,000 - ------------------------------------------------------------------------------ 48,766,000 49,205,000 - ------------------------------------------------------------------------------ Other assets and deferred charges: Intangible assets, less accumulated amortization of $2,004,000 and $2,002,000 456,000 458,000 Other assets 2,407,000 2,680,000 - ------------------------------------------------------------------------------ $ 120,380,000 128,368,000 ==============================================================================
See accompanying notes to condensed consolidated financial statements. 3 4 PART I -- FINANCIAL INFORMATION Item 1. Financial Statements, Continued HANOVER FOODS CORPORATION AND SUBSIDIARIES Condensed Consolidated Balance Sheets, Continued (Unaudited)
======================================================================================== June 2, March 31, LIABILITIES AND STOCKHOLDERS' EQUITY 1996 1996 - ---------------------------------------------------------------------------------------- Current liabilities: Accounts payable $ 23,916,000 24,792,000 Notes payable -- banks 24,097,000 29,421,000 Accrued expenses 4,052,000 3,966,000 Current maturities of long-term debt 1,999,000 1,999,000 Current maturities of long-term debt to related party 500,000 500,000 Current maturities of capital lease obligations 152,000 210,000 Income taxes payable 110,000 93,000 - ---------------------------------------------------------------------------------------- Total current liabilities 54,826,000 60,981,000 Long-term debt, less current maturities 18,078,000 18,078,000 Long-term debt to related party, less current maturities 375,000 375,000 Other liabilities 805,000 736,000 Deferred income taxes 5,170,000 5,689,000 - ---------------------------------------------------------------------------------------- Total liabilities 79,254,000 85,859,000 - ---------------------------------------------------------------------------------------- Stockholders' equity: 8-1/4% cumulative convertible preferred, $25 par value; issuable in series, 120,000 shares authorized; 31,536 shares issued, 15,044 shares outstanding 788,000 788,000 Common stock, Class A, non-voting, $25 par value; 800,000 shares authorized, 349,210 shares issued, 294,824 shares at June 2, 1996 and 295,649 shares at March 31, 1996 outstanding 8,729,000 8,729,000 Common stock, Class B, voting, $25 par value; 880,000 shares authorized, 493,123 shares issued, 427,350 shares at June 2, 1996 and 427,459 shares at March 31, 1996 outstanding 12,328,000 12,328,000 Capital paid in excess of par value 1,623,000 1,623,000 Retained earnings 25,688,000 27,026,000 Treasury stock, at cost (7,755,000) (7,708,000) Other (275,000) (277,000) - ---------------------------------------------------------------------------------------- 41,126,000 42,509,000 - ---------------------------------------------------------------------------------------- $ 120,380,000 128,368,000 ========================================================================================
See accompanying notes to condensed consolidated financial statements. 4 5 PART I -- FINANCIAL INFORMATION Item 1. Financial Statements, Continued HANOVER FOODS CORPORATION AND SUBSIDIARIES Condensed Consolidated Statements of Operations (Unaudited) ==========================================================================
Nine weeks ended ---------------------------- June 2, June 4, 1996 1995 - -------------------------------------------------------------------------- Net sales $ 34,569,000 36,795,000 Cost of goods sold 28,805,000 29,087,000 - -------------------------------------------------------------------------- Gross profit 5,764,000 7,708,000 Selling expenses 5,465,000 7,089,000 Administrative expenses 1,433,000 1,889,000 - -------------------------------------------------------------------------- Operating profit (loss) (1,134,000) (1,270,000) Interest expense 596,000 584,000 Other (income) expense, net (66,000) (191,000) - -------------------------------------------------------------------------- Earnings (loss) before income taxes (1,664,000) (1,663,000) Income taxes (533,000) (539,000) - -------------------------------------------------------------------------- Net earnings (loss) (1,131,000) (1,124,000) Dividends on preferred stock 8,000 - - -------------------------------------------------------------------------- Net earnings (loss) applicable to common stock $ (1,139,000) (1,124,000) ========================================================================== Earnings per share: Net earnings (loss), primary $ (1.58) (1.53) ========================================================================== Dividends per share, common $ 0.275 - ========================================================================== Average shares outstanding $ 722,667 733,755 ==========================================================================
See accompanying notes to condensed consolidated financial statements. 5 6 PART I -- FINANCIAL INFORMATION Item 1. Financial Statements, Continued HANOVER FOODS CORPORATION AND SUBSIDIARIES Condensed Consolidated Statements of Stockholders' Equity Periods ended June 2, 1996 and March 31, 1996 (Unaudited)
=============================================================================================================== Cumulative convertible preferred stock Common stock Series A and Series B Class A ---------------------- ------------------------- Total stockholders' equity Shares Amount Shares Amount - --------------------------------------------------------------------------------------------------------------- Balance, April 2, 1995 $ 43,920,000 31,816 $ 795,000 349,090 $ 8,726,000 Net earnings for the year 420,000 - - - - Cash dividends per share: Preferred stock (31,000) - - - - Common stock (800,000) - - - - Redemption of common stock (Class A 5,789 shares and Class B 5,148 shares) (760,000) - - - - Conversion of preferred for Class A common - (280) (7,000) 120 3,000 Unrealized gain on investments 111,000 - - - - Minimum pension liability adjustment (net of taxes of $235,000) (351,000) - - - - - --------------------------------------------------------------------------------------------------------------- Balance, March 31, 1996 42,509,000 31,536 788,000 349,210 8,729,000 Net loss for the period (1,131,000) - - - - Cash dividends per share: Preferred stock (8,000) - - - - Common stock (199,000) - - - - Redemption of common stock (Class A 825 shares and Class B 109 shares) (47,000) - - - - Unrealized gain on investments 2,000 - - - - - --------------------------------------------------------------------------------------------------------------- Balance, June 2, 1996 $ 41,126,000 31,536 $ 788,000 349,210 $ 8,729,000 ===============================================================================================================
=============================================================================================================== Common stock Class B -------------------------------- Capital paid in excess of par Retained Shares Amount value earnings - --------------------------------------------------------------------------------------------------------------- Balance, April 2, 1995 $ 493,123 $ 12,328,000 1,619,000 27,437,000 Net earnings for the year - - - 420,000 Cash dividends per share: Preferred stock - - - (31,000) Common stock - - - (800,000) Redemption of common stock (Class A 5,789 shares and Class B 5,148 shares) - - - - Conversion of preferred for Class A common - - 4,000 - Unrealized gain on investments - - - - Minimum pension liability adjustment (net of taxes of $235,000) - - - - - --------------------------------------------------------------------------------------------------------------- Balance, March 31, 1996 493,123 12,328,000 1,623,000 27,026,000 Net loss for the period - - - (1,131,000) Cash dividends per share: Preferred stock - - - (8,000) Common stock - - - (199,000) Redemption of common stock (Class A 825 shares and Class B 109 shares) - - - - Unrealized gain on investments - - - - - --------------------------------------------------------------------------------------------------------------- Balance, June 2, 1996 $ 493,123 $ 12,328,000 1,623,000 25,688,000 ===============================================================================================================
====================================================================================== Treasury stock -------------------------- Shares Amount Other - -------------------------------------------------------------------------------------- Balance, April 2, 1995 124,738 $ (6,948,000) (37,000) Net earnings for the year - - - Cash dividends per share: Preferred stock - - - Common stock - - - Redemption of common stock (Class A 5,789 shares and Class B 5,148 shares) 10,937 (760,000) - Conversion of preferred for Class A common - - - Unrealized gain on investments - - 111,000 Minimum pension liability adjustment (net of taxes of $235,000) - - (351,000) - -------------------------------------------------------------------------------------- Balance, March 31, 1996 135,675 (7,708,000) (277,000) Net loss for the period - - - Cash dividends per share: Preferred stock - - - Common stock - - - Redemption of common stock (Class A 825 shares and - Class B 109 shares) 934 (47,000) - Unrealized gain on investments - - 2,000 - -------------------------------------------------------------------------------------- Balance, June 2, 1996 136,609 $ (7,755,000) (275,000) ======================================================================================
See accompanying notes to condensed consolidated financial statements. 6 7 PART I -- FINANCIAL INFORMATION Item 1. Financial Statements, Continued HANOVER FOODS CORPORATION AND SUBSIDIARIES Condensed Consolidated Statements of Cash Flows (Unaudited) ===============================================================================
Nine weeks ended ------------------------------ June 2, June 4, 1996 1995 - ------------------------------------------------------------------------------- Increase (decrease) in cash and cash equivalents Operating activities: Net earnings (loss) $ (1,131,000) (1,124,000) Adjustments to reconcile net earnings (loss) to net cash used in operating activities: Depreciation and amortization 1,013,000 929,000 Deferred income taxes (519,000) (569,000) Change in assets and liabilities: Accounts receivable 7,924,000 5,977,000 Inventory 90,000 (529,000) Prepaid items (542,000) (2,332,000) Accounts payable and accrued expenses (790,000) 312,000 Income taxes payable 17,000 16,000 Other liabilities 69,000 34,000 - ------------------------------------------------------------------------------- Net cash provided by operating activities 6,131,000 2,714,000 - ------------------------------------------------------------------------------- Investing activities: (Increase) decrease in other non-current assets 275,000 (236,000) Acquisitions of property, plant, and equipment (572,000) (1,416,000) - ------------------------------------------------------------------------------- Net cash used in investing activities (297,000) (1,652,000) - ------------------------------------------------------------------------------- Financing activities: Increase (decrease) in notes payable (5,324,000) (625,000) Payments on long-term debt and capital leases (58,000) (179,000) Payment of dividends (207,000) - Redemption of common stock (47,000) (26,000) - ------------------------------------------------------------------------------- Net cash used in financing activities (5,636,000) (830,000) - ------------------------------------------------------------------------------- Net increase in cash and cash equivalents 198,000 232,000 Cash and cash equivalents, beginning of period 914,000 649,000 - ------------------------------------------------------------------------------- Cash and cash equivalents, end of period $ 1,112,000 881,000 ===============================================================================
See accompanying notes to condensed consolidated financial statements. 7 8 PART I -- FINANCIAL INFORMATION Item 1. Financial Statements, Continued HANOVER FOODS CORPORATION AND SUBSIDIARIES Notes to Condensed Consolidated Financial Statements June 2, 1996 and March 31, 1996 (Unaudited) ================================================================================ (1) BASIS OF PRESENTATION The condensed consolidated financial statements of the Registrant included herein have been prepared, without audit, pursuant to the rules and regulations of the Securities and Exchange Commission. Although, certain information normally included in financial statements prepared in accordance with generally accepted accounting principles has been omitted, the Registrant believes that the disclosures are adequate to make the information presented not misleading. Effective June 2, 1996, the Corporation changed its fiscal year to end at the close of operations on the Sunday nearest to May 31. Accordingly, these financial statements reflect activity for the nine week periods ended June 2, 1996 and June 4, 1995. It is suggested that these condensed consolidated financial statements be read in conjunction with the consolidated financial statements and the notes thereto included in Form 10-K for its fiscal year ended March 31, 1996. The condensed consolidated financial statements included herein reflect all adjustments (consisting only of normal recurring accruals) which, in the opinion of management, are necessary to present a fair statement of the results for the interim period. The results for interim periods are not necessarily indicative of trends or results to be expected for a full year. (2) SHORT-TERM BORROWINGS The Corporation and its subsidiaries maintain short-term unsecured lines of credit with various banks providing credit availability amounting to $55 million of which $24,097,000 was borrowed at June 2, 1996. The average cost of funds during the period ended June 2, 1996 was 6.1%. (Continued) 3 9 PART I -- FINANCIAL INFORMATION Item 1. Financial Statements, Continued HANOVER FOODS CORPORATION AND SUBSIDIARIES Notes to Condensed Consolidated Financial Statements (Unaudited) ================================================================================ (3) LONG-TERM DEBT The long-term debt of the Corporation and its subsidiaries consist of:
June 2, 1996 March 31, 1996 - ---------------------------------------------------------------------------------------------- 8.74% - 9.24%unsecured senior notes payable to an insurance company, due fiscal years ending 1995-2007 $ 19,643,000 19,643,000 Installment obligation payable to a municipality, due fiscal years ending 1995-1997 140,000 140,000 Installment obligation payable to a related party, due in equal annual installments in fiscal years ending 1996-2000 interest at prime rate (8.25% at June 2, 1996) 294,000 294,000 6.33% installment obligation payable to a related party, due fiscal years ending 1996-1998 875,000 875,000 - ---------------------------------------------------------------------------------------------- 20,952,000 20,952,000 Less current maturities 2,499,000 2,499,000 - ---------------------------------------------------------------------------------------------- $ 18,453,000 18,453,000 ==============================================================================================
The term loan agreements with the insurance company, the agreements for seasonal borrowing with financial institutions, and installment agreements with industrial development authorities contain various restrictive provisions including those relating to mergers and acquisitions, additional borrowing, guarantees of obligations, lease commitments, limitations on declaration and payment of dividends, repurchase of the Corporation's stock, and the maintenance of working capital and certain financial ratios. The Corporation is in compliance with the restrictive provisions in the agreements except for the Interest Charge Coverage Ratio for which the Corporation has received waivers to this provision through the current compliance period from the respective lenders. The interest rate on the unsecured senior notes payable has been increased from 8.74% to 9.24% from December 31, 1995 to July 10, 1996. Management and the senior unsecured lender are currently working towards an amendment to modify the Interest Charge Coverage Ratio through September 1, 1997 and management expects to finalize this amendment before the end of the next compliance period. (Continued) 9 10 PART I -- FINANCIAL INFORMATION Item 1. Financial Statements, Continued HANOVER FOODS CORPORATION AND SUBSIDIARIES Notes to Condensed Consolidated Financial Statements (Unaudited) ================================================================================ (4) RELATED PARTY TRANSACTIONS The Corporation and its subsidiaries, in the normal course of business, purchase and sell goods and services to related parties. The Corporation believes that the cost of such purchases and sales and sales are competitive with alternative sources of supply and markets.
Nine weeks ended ---------------------------------- June 2, 1996 June 4, 1995 - ---------------------------------------------------------------------------- Revenues: Park 100 Foods, Inc. $ 118,000 - Corporate charges: Snyder's of Hanover, Inc. 29,000 29,000 Expenditures: The Cannery Press, Inc. - 68,000 Patti & John's, Inc. 4,000 4,000 ARWCO Corporation 24,000 31,000 Warehime Enterprises, Incorporated 1,000 69,000 John A. and Patricia M. Warehime 7,000 7,000 James G. Sturgill 15,000 19,000 George E. Lawrence - 8,000 ============================================================================
The respective June 2, 1996 and March 31, 1996 account balances with related companies are as follows:
June 2, March 31, 1996 1996 - ------------------------------------------------------------------------ Accounts receivable: Snyder's of Hanover, Inc. $ 11,000 24,000 Patti & John's, Inc. 4,000 3,000 Park 100 Foods, Inc. 56,000 - Accounts payable: The Cannery Press, Inc. 4,000 4,000 Warehime Enterprises, Inc. - 5,000 Patti & John's, Inc. 6,000 - Notes payable: Warehime Enterprises, Inc. 875,000 875,000 Cyril T. Noel 294,000 294,000 ========================================================================
(Continued) 10 11 PART I -- FINANCIAL INFORMATION Item 1. Financial Statements, Continued HANOVER FOODS CORPORATION AND SUBSIDIARIES Notes to Condensed Consolidated Financial Statements (Unaudited) ================================================================================ (5) CONTINGENCIES LEGAL MATTERS It is the opinion of management and counsel that various claims and litigation in which the Corporation is currently involved will not materially affect the Corporation's financial position, results of operations or liquidity. MANUFACTURER COUPONS The Corporation is contingently liable for unredeemed manufacturer coupons on various products at June 2, 1996 which will expire during 1996. ================================================================================ 11 12 PART I -- FINANCIAL INFORMATION Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations HANOVER FOODS CORPORATION AND SUBSIDIARIES ================================================================================ The following comments should be read in conjunction with Management's Discussion and Analysis of Financial Conditions and Results of Operations appearing in the Corporation's 1995-96 Annual Report to Shareholders. RESULTS OF OPERATIONS NET SALES Consolidated net sales were $34.6 million for the nine week period ended June 2, 1996. This represents a decrease of 6.0% over the nine week period ended June 4, 1995 consolidated net sales of $36.8 million. The decrease of $2.2 million was primarily due to decreased canned and frozen retail sales offset by increases in private label sales and was consistent with the Corporation's business plan. COST OF GOODS SOLD Cost of goods sold were $28.8 million or 83.3% of consolidated net sales in the nine week period ended June 2, 1996 and $29.1 million, or 79.1%, of consolidated net sales for the corresponding period in 1995. The increase in cost of goods sold as a percentage of net sales resulted primarily from a decrease in the average selling prices per case of product in the nine week period ended June 2, 1996 compared to 1995 due to continued intense competition in retail sales. SELLING EXPENSES Selling expenses were $5.5 million or 15.8% of consolidated net sales for the nine week period ended June 2, 1996 versus $7.1 million or 19.3% of consolidated net sales during the corresponding period in 1995. The decrease in selling expenses as a percentage of net sales reflects lower expenses related to promotional programs, advertising, and customer allowances in the nine week period ended June 2, 1996 compared to 1995. ADMINISTRATIVE EXPENSES Administrative expenses as a percentage of consolidated net sales were 4.1% for the nine week period ended June 2, 1996 compared to 5.1% for the corresponding period of 1995. This decrease is attributed to reductions in personnel related costs. INTEREST EXPENSE Interest expense was $596,000 for the nine week period ended June 2, 1996 as compared to $584,000 for the same period in 1995. The increase in interest is mainly due to higher average borrowings during the current period as compared to the prior period. (Continued) 12 13 PART I -- FINANCIAL INFORMATION Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations HANOVER FOODS CORPORATION AND SUBSIDIARIES ================================================================================ LIQUIDITY AND FINANCIAL RESOURCES Management's discussion of the Corporation's financial condition should be read in conjunction with the condensed consolidated statements of cash flow appearing on page 7 of this report. OPERATING ACTIVITIES Cash provided by operating activities for the nine week period ended June 2, 1996 was $6.1 million as compared to $2.7 million during the same period of 1995. The combination of decreased accounts receivable and inventory levels, offset by prepaid expenses incurred for the production season and the decrease of trade accounts payable and accrued expenses generated increased cash flow. By comparison the same period of 1995 consumed more cash for increased inventory levels and payables, which was offset by a smaller reduction of receivables. INVESTING ACTIVITIES During the nine week period ended June 2, 1996 the Corporation consumed approximately $600,000 in funds for capital projects. This compares to $1.4 million consumed during the same time frame last year for capital projects. FINANCING ACTIVITIES The decrease in notes payable of approximately $5.3 million during the nine week period ended June 2, 1996 represents payments made against available seasonal lines of credit from financial institutions from cash generated from customer accounts receivable. Available funds were also used to redeem 825 shares of Class A -- common stock and 109 shares of Class B E common stock at a cost of $47,000. The Corporation has available seasonal lines-of-credit from financial institutions in the amount of $55 million. Additional borrowings are permitted within prescribed parameters in existing debt agreements. Management believes these credit facilities provide adequate cash availability for seasonal operating requirements. 13 14 PART II -- OTHER INFORMATION HANOVER FOODS CORPORATION AND SUBSIDIARIES
Item: 1 Legal Proceedings There have been no material developments in previously reported litigation in which the Corporation is currently involved. (See Form 10-K filed by Corporation on July 2, 1996). 2-5 None 6 -- Exhibits and Reports on Form 8-K. (a) Exhibits 11 -- Computation of Earnings Per Share 27 -- Financial Data Schedule (b) Reports on Form 8-K: On May 4, 1996, the Corporation filed a report on Form 8-K reporting a change in the Corporation's fiscal year.
14 15 SIGNATURES Pursuant to the requirements of the Securities and Exchange Act of 1934, the Registrant has duly caused this Report to be signed on its behalf by the undersigned thereunto duly authorized. Date: July 17, 1996 HANOVER FOODS CORPORATION BY /s/ GARY T. KNISELY -------------------------- Gary T. Knisely Executive Vice President BY /s/ JACK A. BROWN -------------------------- Jack A. Brown, Treasurer 15 EX-11 2 COMPUTATION OF EARNINGS PER SHARE 1 Exhibit 11 HANOVER FOODS CORPORATION AND SUBSIDIARIES Computation of Earnings Per Share
========================================================================================= Nine weeks ended ---------------------------------------- June 2, June 4, 1996 1995 - ----------------------------------------------------------------------------------------- PRIMARY Earnings: Net earnings (loss) $ (1,131,000) (1,124,000) Preferred stock dividends (8,000) - - ----------------------------------------------------------------------------------------- Net earnings (loss) applicable to common stock $ (1,139,000) (1,124,000) ========================================================================================= Shares Weighted average number of shares outstanding 722,667 733,755 ========================================================================================= Net earnings (loss) per share - primary $ (1.58) (1.53) =========================================================================================
EX-27 3 FINANCIAL DATA SCHEDULE
5 1,000 2-MOS JUN-02-1996 APR-01-1996 JUN-02-1996 1,112 0 17,249 0 47,067 68,751 109,863 61,273 120,380 54,826 20,952 0 788 21,057 19,281 120,380 34,569 34,569 28,805 28,805 6,832 0 596 (1,664) (533) (1,131) 0 0 0 (1,131) (1.58) (1.58)
-----END PRIVACY-ENHANCED MESSAGE-----