Bridgford Foods (BRID) - 2020 Q1 - Quarterly Report

Financial Performance - Total sales for the twelve weeks ended January 24, 2020, were $46,642 million, a decrease from $45,041 million in the same period of 2019, representing a decline of 3.6%[53] - Gross margin for the twelve weeks ended January 24, 2020, was $15,054 million, compared to $15,654 million for the same period in 2019, reflecting a decrease of 3.8%[53] - Income before taxes for the twelve weeks ended January 24, 2020, was $2,449 million, down from $2,567 million in the prior year, a decline of 4.6%[53] - The effective tax rate for the first quarter of fiscal 2020 was 24.09%, compared to 26.91% for the same quarter in fiscal 2019, indicating a reduction in the tax burden[57] Inventory and Assets - For the twelve weeks ended January 24, 2020, the total inventory was $26,348,000, slightly down from $26,367,000 on November 1, 2019[40] - The company’s inventories include meat, ingredients, and supplies valued at $7,237,000 as of January 24, 2020, compared to $5,283,000 on November 1, 2019[40] - Total assets as of January 24, 2020, were $129,612 million, an increase from $107,683 million as of January 25, 2019, representing a growth of 20.3%[53] Customer and Revenue Recognition - The company reported a customer concentration where one customer accounted for 36.4% of sales and 34.2% of accounts receivable for the period ending January 24, 2020[30] - The company recognized revenue based on the transaction price, which is the net amount expected to be received after deducting estimated discounts and allowances[34] Operating Segments - The company has two reportable operating segments: Frozen Food Products and Snack Food Products, with performance evaluated based on revenues and operating income[49] - The company reported total snack food product sales of $35,288 million for the twelve weeks ended January 24, 2020, compared to $33,169 million in the same period of 2019, reflecting a growth of 6.4%[55] Financing and Liabilities - The company entered into a loan agreement with Wells Fargo Bank for $7,500,000 to be received in the second quarter of fiscal 2020[37] - The company’s finance lease liabilities amounted to $442,000 as of January 24, 2020, reflecting both current and long-term obligations[44] - The company maintains a line of credit with Wells Fargo Bank, N.A., allowing borrowing up to $7,500 million, with $4,500 million already drawn as of January 24, 2020[63] - Total long-term notes payable for equipment as of January 24, 2020, were $14,703 million, up from $6,556 million in the prior year, an increase of 124.8%[63] Capital Expenditures - Additions to property, plant, and equipment (PP&E) for the twelve weeks ended January 24, 2020, totaled $6,174 million, compared to $7,191 million in the same period of 2019, a decrease of 14.1%[53] Other Financial Information - The company has approximately $9,900 million of federal net operating loss carryforwards as of January 24, 2020[60] - The company’s amortization of equipment under finance leases was $17,000 during the first quarter of fiscal 2020[43] - The company does not participate in the commodity futures market or hedging to limit commodity exposure, with no significant contracts remaining unfulfilled as of January 24, 2020[48]