UNITED STATES
  
SECURITIES AND EXCHANGE COMMISSION
  
Washington, D.C.  20549
  
FORM 10-Q
  
(Mark one)
  
[ X ] QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF
  
THE SECURITIES AND EXCHANGE ACT OF 1934
  
   
For the quarterly period ended July 10, 2009
  
   
OR
  
   
[   ] TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF
  
THE SECURITIES EXCHANGE ACT OF 1934
  
   
For the transition period from __________ to ___________.
  
   
Commission file number                                     0-2396
  
 
 
BRIDGFORD FOODS CORPORATION
  
(Exact name of Registrant as specified in its charter)
  
   
   
California
95-1778176
  
(State or other jurisdiction of
    (I.R.S. Employer
  
  incorporation or organization)
    identification number)
  
   
   
1308 N. Patt Street, Anaheim, CA  92801
  
(Address of principal executive offices-Zip code)
  
   
714-526-5533
  
(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   [   ]                  No [   ]
 
Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, or a smaller reporting company.  See the definitions of "large accelerated filer," "accelerated filer" and "smaller reporting company" in Rule 12b-2 of the Exchange Act.
 
 
Large accelerated filer [   ]
 
Accelerated filer [   ]
       
 
Non-accelerated filer [   ]   (Do not check if smaller reporting company)
 
Smaller reporting company [ X ]
 
Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).
 
Yes   [   ]                  No [ X ]
 
As of August 20, 2009 the registrant had 9,376,194 shares of common stock outstanding.
 
1
 
BRIDGFORD FOODS CORPORATION
  
FORM 10-Q QUARTERLY REPORT
  
INDEX
  
                         
References to "Bridgford Foods" or the "Company" contained in this Quarterly Report on Form 10-Q refer to Bridgford Foods Corporation.
                         
                         
Part I.  Financial Information
                  
                         
  Item 1.  Financial Statements
                
Page
                         
 
  a. Condensed Consolidated Balance Sheets at July 10, 2009 (unaudited) and October 31, 2008
 3
                         
 
  b. Condensed Consolidated Statements of Operations for the twelve and thirty-six weeks ended July 10, 2009
  
 
     and July 11, 2008 (unaudited)
 4
                         
 
  c. Condensed Consolidated Statement of Shareholders' Equity and Comprehensive Loss for the thirty-six
  
 
      weeks ended July 10, 2009 (unaudited)
 4
                         
 
  d. Condensed Consolidated Statements of Cash Flows for the thirty-six weeks ended July 10, 2009 and
    
 
      July 11, 2008 (unaudited)
 5
                         
 
  e. Notes to Condensed Consolidated Financial Statements (unaudited)
 6
                         
  Item 2.  Management's Discussion and Analysis of Financial Condition
          
             and Results of Operations
11
                         
  Item 3.  Quantitative and Qualitative Disclosures about Market Risk
20
                         
  Item 4T.  Controls and Procedures
20
                         
Part II.  Other Information
                    
                         
  Item 1A.  Risk Factors
22
                         
  Item 2.  Unregistered Sales of Equity Securities and Use of Proceeds
22
                         
  Item 6.  Exhibits
23
                         
Signatures
24
                         
Items 1 and 3-5 of Part II have been omitted because they are not applicable with respect to the current reporting period.
  
 
 
2
 
Part I.  Financial Information
 
Item 1. a.
BRIDGFORD FOODS CORPORATION
CONDENSED CONSOLIDATED BALANCE SHEETS
(in thousands, except per share amounts)
 
ASSETS
  
July 10, 2009
    
October 31, 2008
  
   
(Unaudited)
        
Current assets:
            
             
   Cash and cash equivalents
   $ 12,407     $ 6,092  
   Accounts receivable, less allowance for doubtful accounts of $378
                
     and $397, respectively, and promotional allowances of $2,108
                
     and $2,015, respectively
     7,242       8,867  
   Inventories (Note 2)
     15,047       16,052  
   Prepaid expenses and other current assets
     1,235       906  
                 
Total current assets
     35,931       31,917  
                 
Property, plant and equipment, less
                
  accumulated depreciation of $55,295
                
  and $53,740, respectively
     8,751       9,775  
                 
Other non-current assets
     10,267       10,263  
    $ 54,949     $ 51,955  
                 
LIABILITIES AND SHAREHOLDERS' EQUITY
                
                 
Current liabilities:
                
                 
   Accounts payable
   $ 3,604     $ 3,073  
   Accrued payroll, advertising and other expenses
     7,843       8,405  
                 
Total current liabilities
     11,447       11,478  
                 
Non-current liabilities
     13,322       7,942  
                 
Total liabilities
     24,769       19,420  
                 
                 
Commitments and Contingencies (Note 5)
                
                 
Shareholders' equity:
                
   Preferred stock, without par value
                
     Authorized - 1,000 shares
                
     Issued and outstanding - none
     -            -   
                 
   Common stock, $1.00 par value
                
     Authorized - 20,000 shares
                
     Issued and outstanding - 9,396 and 9,435 shares
     9,453       9,492  
   Capital in excess of par value
     10,973       11,204  
   Retained earnings
     17,926       14,298  
   Accumulated other comprehensive loss
     (8,172 )     (2,459 )
      30,180       32,535  
    $ 54,949     $ 51,955  
                 
See accompanying notes to condensed consolidated financial statements.
                
 
3
 
Item 1. b.
 
BRIDGFORD FOODS CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(Unaudited)
(in thousands, except per share amounts)
 
   
12 weeks ended
    
36 weeks ended
  
   
July 10, 2009
    
July 11, 2008
    
July 10, 2009
    
July 11, 2008
  
                         
Net sales
   $ 26,281     $ 26,584     $ 83,435     $ 82,802  
                                 
Cost of products sold, excluding depreciation
     15,089       17,546       49,105       54,872  
                                 
Selling, general and administrative expenses
     9,393       10,218       28,532       29,311  
Depreciation
     531       753       1,962       2,249  
      25,013       28,517       79,599       86,432  
                                 
Income (loss) before taxes
     1,268       (1,933 )     3,836       (3,630 )
                                 
Income tax provision
     208       4,339       208       3,690  
                                 
Net income (loss)
   $ 1,060     $ (6,272 )   $ 3,628     $ (7,320 )
                                 
                                 
Basic income (loss) per share (Note 3)
   $ 0.11     $ (0.66 )   $ 0.38     $ (0.76 )
                                 
Diluted income (loss) per share (Note 3)
   $ 0.11     $ (0.66 )   $ 0.38     $ (0.76 )
                                 
Weighted average common shares - Basic shares computed
     9,419       9,445       9,429       9,669  
                                 
Weighted average common shares - Diluted shares computed
     9,419       9,445       9,429       9,669  
                                 
See accompanying notes to condensed consolidated financial statements.
  
 
Item 1. c.
 
CONDENSED CONSOLIDATED STATEMENT OF SHAREHOLDERS' EQUITY AND COMPREHENSIVE LOSS
(Unaudited)
(in thousands)
 
                           
Accumulated
        
               
Capital
          
other
        
   
Common Stock
    
in excess
    
Retained
    
comprehensive
        
   
Shares
    
Amount
    
of par
    
earnings
    
loss
    
Total
  
October 31, 2008
     9,435     $ 9,492     $ 11,204     $ 14,298     $ (2,459 )   $ 32,535  
  Shares repurchased
     (39 )     (39 )     (231 )                     (270 )
  Net income
                             3,628               3,628  
  Other comprehensive
                                                
  loss:
                                                
     Unrealized loss on
                                                
           investments
                                     (8 )     (8 )
     Change in pension
                                                
           liability (Note 4)
                                     (5,705 )     (5,705 )
  Comprehensive loss
                                             (2,085 )
July 10, 2009
     9,396     $ 9,453     $ 10,973     $ 17,926     $ (8,172 )   $ 30,180  
                                                 
See accompanying notes to condensed consolidated financial statements.
  
 
4
 
Item 1. d.
BRIDGFORD FOODS CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited)
(in thousands)
 
 
   
36 weeks ended
  
   
July 10, 2009
    
July 11, 2008
  
             
             
Cash flows from operating activities:
            
             
  Net income (loss)
   $ 3,628     $ (7,320 )
                 
  Income or charges not affecting cash and cash equivalents:
                
    Depreciation
     1,962       2,249  
    Provision for losses on accounts receivable
     6       26  
    Gain on sale of property, plant and equipment
     (10 )     (35 )
    Tax valuation allowance on deferrred tax assets
     -        4,940  
  Effect on cash and cash equivalents of changes in operating assets and liabilities:
                
    Accounts receivable, net
     1,619       740  
    Inventories
     1,005       (91 )
    Prepaid expenses and other current assets
     (337 )     (839 )
    Other non-current assets
     (4 )     376  
    Accounts payable
     531       838  
    Accrued payroll, advertising and other expenses
     (562 )     (1,062 )
    Non-current liabilities
     (325 )     (360 )
                 
       Net cash provided by (used in) operating activities
     7,513       (538 )
                 
Cash used in investing activities:
                
     Proceeds from sale of property, plant and equipment
     56       40  
     Additions to property, plant and equipment
     (984 )     (1,586 )
                 
      Net cash used in investing activities
     (928 )     (1,546 )
                 
Cash used in financing activities:
                
     Shares repurchased
     (270 )     (3,018 )
                 
      Net cash used in financing activities
     (270 )     (3,018 )
                 
Net increase (decrease) in cash and cash equivalents
     6,315       (5,102 )
                 
Cash and cash equivalents at beginning of period
     6,092       11,336  
                 
Cash and cash equivalents at end of period
   $ 12,407     $ 6,234  
                 
Cash paid for income taxes
   $ 0     $ 0  
                 
                 
See accompanying notes to condensed consolidated financial statements.
  
 
 
 
5
 
Item 1. e.
 
BRIDGFORD FOODS CORPORATION
 
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Unaudited)
(in thousands, except percentages, share and per share amounts)
 
Note 1 - Summary of Significant Accounting Policies:
 
The unaudited consolidated condensed financial statements of Bridgford Foods Corporation (the "Company", "we", "our", "us") for the twelve and thirty-six weeks ended July 10, 2009 and July 11, 2008 have been prepared in conformity with the accounting principles described in the Company's Annual Report on Form 10-K for the fiscal year ended October 31, 2008 (the "Annual Report") and include all adjustments considered
necessary by management for a fair presentation of the interim periods.  Such adjustments consist only of normal recurring items.  This report should be read in conjunction with the Annual Report.  Due to seasonality and other factors, interim results are not necessarily indicative of the results for the full year.  New accounting pronouncements and their effect on the Company are discussed in Management's Discussion and Analysis of Financial Condition and Results of Operations in this Form 10-Q.
 
The October 31, 2008 balance sheet within these interim condensed consolidated financial statements were derived from the audited fiscal 2008 financial statements.
 
The preparation of consolidated financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities as of the date of the financial statements and the reported revenues and expenses during the reporting periods.
Actual results may vary from these estimates.  Some of the estimates needed to be made by management include the allowance for doubtful accounts, inventory reserves and the estimated useful lives of property and equipment, and the valuation allowance for the Company’s deferred tax asset. Actual results could materially differ from these estimates. Amounts estimated related to liabilities for self-insured workers’ compensation, employee healthcare and pension benefits are especially subject to inherent uncertainties and these estimated liabilities may ultimately settle at amounts which vary from our current estimates.
 
Financial instruments that subject the Company to credit risk consist primarily of cash and cash equivalents, accounts and other receivables, accounts payable and accrued liabilities.  The carrying amount of these instruments approximate fair market value due to the short maturity of these instruments.  At July 10, 2009, the Company had accounts in excess of the Federal Deposit Insurance Corporation insurance coverage limit. The Company has not experienced any losses in these accounts and believes it is not exposed to any significant credit risk on cash and cash equivalents.  The Company issues credit to a significant number of customers that are diversified over a wide geographic area.  The Company monitors the payment histories of its customers and maintains an allowance for doubtful accounts which is reviewed for adequacy on a quarterly basis.  The Company does not require collateral from its customers.
 
For the thirty-six weeks ended July 10, 2009 and July 11, 2008, Wal-Mart® accounted for 11.7% and 13.1%, respectively of consolidated revenues or 15.2% and 16.4% of consolidated accounts receivable.  For the twelve weeks ended July 10, 2009 and July 11, 2008, Wal-Mart® accounted for  17.3% and 13.6%, respectively of consolidated revenues or 15.2% and 16.4% of consolidated accounts receivable.
 
Note 2 - Inventories:
 
Inventories are comprised of the following at the respective periods:
 
   
July 10, 2009
    
October 31, 2008
  
Meat, ingredients and supplies
   $ 4,599     $ 4,086  
Work in progress
     1,988       2,322  
Finished goods
     8,460       9,644  
    $ 15,047     $ 16,052