Consolidated Financial Statements
Second Quarter Close
November 29, 2020Hanover Foods Corporation
Consolidated Balance Sheets
Nov. 29, May 31, Dec. 1,
Assets 2020 2020 2019
Current assets
Cash and cash equivalents $ 11,862,000 $ 14,646,000 -$ 7,515,000
Accounts and notes receivable, net 35,676,000 34,064,000 35,831,000
Inventories:
Finished goods 110,159,000 90,653,000 101,932,000
Raw materials and supplies 39,343,000 28,604,000 30,878,000
Prepaid expenses 16,603,000 17,578,000 16,549,000
Income tax receivable 2,290,000 5,076,000 2,290,000
Total current assets 215,933,000 __190,621,000__194,995,000
Noncurrent assets
Property, plant and equipment, at cost:
Land and buildings 113,239,000 112,040,000 97,899,000
Machinery and equipment 199,165,000 200,740,000 195,838,000
Leasehold improvements 845,000 845,000 845,000
313,289,000 “313,625,000 294,582,000
Less accumulated depreciation and amortization 219,581,000___219,988,000___215,587,000
93,668,000 93,637,000 78,995,000
Construction in progress 18,265,000 9,474,000 21,136,000
Total property, plant and equipment 111,933,000 __103,111,000___ 100,131,000
Goodwill 3,923,000 3,923,000 3,923,000
Intangible assets 4,580,000 4,630,000 4,680,000
Right-of-use assets, operating, Net 4,677,000 4,677,000 0
Other assets 3,827,000 2,788,000 7,840,000
‘Total noncurrent assets 128,940,000 119,129,000 _116,574,000
Total assets
$ 344,873,000
$ 309,750,000
$ 311,569,000Hanover Foods Corporation
Consolidated Balance Sheets
Nov. 29, May 31, Dec. 1,
Liabilities and stockholders’ equity 2020 2020 2018
Current liabilities
Notes payable - banks $ 41,510,000 $ 15,440,000 $ 16,835,000
‘Accounts payable 14,878,000 15,084,000 21,423,000
‘Accrued expenses 117,665,000 14,694,000 18,550,000
Operating lease liabilities 1,332,000 1,332,000 0
Total current liabilities 75,385,000 46,550,000 _56,808,000
Noncurrent liabilities
Deferred income taxes 3,222,000 3,222,000 37,000
Operating lease liabilities 3,345,000 3,345,000 0
Other labilties 10,917,000 11,197,000 __ 13,247,000
Total noncurrent liabilities 17,484,000 17,764,000 _13,284,000
Total liabilities 92,869,000 64,314,000 __70,092,000
Stockholders’ equity
Series A & B 8.25% cumulative convertible preferred stock 73,000 773,000 76,000
Series C cumulative convertible preferred stock 250,000 250,000 250,000
Common stock, class A - nonvoting 8,734,000 8,734,000 8,733,000
Common stock, class 8 - voting 21,213,000 24,213,000 21,213,000
Capital paid in excess of par value 35,046,000 35,046,000 35,044,000
Retained earnings 232,751,000 226,138,000 222,947,000
Treasury stock at cost (50,041,000) (50,031,000) (50,025,000)
Accumulative other comprehensive income 3,278,000 3,313,000 2,539,000
Total stockholders’ equity 252,004,000 245,436,000 201,477,000
ities and stockholders’ equity $ 344,873,000 $ 309,750,000 _$ 311,569,000‘onsen sates oF TOOSIOBES UY
[=Hanover Foods Corporation
Consolidated Statements of Earnings
For the Six Months Ended
Nov. 29, Dec. 1,
2020 2019
Net sales $ 191,529,000 $ 201,742,000
Cost of goods sold 169,310,000 177,907,000
Gross profit 22,219,000 23,835,000
Selling expenses 6,096,000 6,246,000
Administrative expenses 8,524,000 8,508,000
Operating profit 7,599,000 9,081,000
Interest expense 92,000 55,000
Other (income) expense, net (2,517,000) (984,000)
Earnings before income taxes 10,024,000 110,010,000
Income taxes 3,007,000 3,003,000
Net earnings 7,017,000 7,007,000
Dividends on preferred stock 20,000 20,000
Net earnings applicable to common stock $6,997,000 _$ _ 6,987,000Hanover Foods Corporation
Consolidated Statements of Comprehensive Income
Nov. 29, Dec. 1,
2020 2019
Net earnings $7,017,000 $_7,007,000
Other Comprehensive Income (loss)
Unrealized gain (loss) on securities, net of reclassification adjustment (35,000) (91,000)
and Others (net of taxes)
Other Comprehensive Income (loss) (35,000) (81,000)
Comprehensive Income $6,982,000 _$ 6,916,000Hanover Foods Corporation
Consolidated Statements of Cash Flows
For the Six Months Ended
Cash flows from operating activities
Net earnings $7,017,000 $ 7,007,000
‘Adjustments to reconcile net earnings to net
‘cash provided by operating activities
Depreciation and amortization 4,326,000 4,076,000
(Gain) Loss on disposal of fixed assets (2,616,000) °
Deferred income taxes ° 0
Changes in assets and liabilities
Accounts receivable, net (2,612,000) (2,639,000)
Inventories, net (30,245,000) (27,208,000)
Prepaid expenses and other assets (28,000) (33,000)
‘Accounts payable and accrued expenses 2,765,000 13,425,000
Income taxes receivable 2,786,000 2,398,000
Other abilities (280,000) (414,000)
[Net cash provided by (used in) operating activi (16,958,000) (4,388,000)
Cash flows used in investing activities
‘Acquisitions of property, plant and equipment (23,510,000) (13,402,000)
Proceeds from disposal of property, plant and equipment 2,028,000 °
Net cash provided by (used in) investing activities (22,482,000) (13,402,000)
‘Cash flows from financing activities
Proceeds from (payments on) notes payable, net 26,070,000 36,230,000
Repurchase of stock (20,000) (31,000)
Payment of dividends (404,000) (409,000)
[Net cash provided by (used in) financing activities, 3,656,000 15,790,000
Net increase (decrease) in cash and cash equivaents (2784,000) (2,000,000)
Cash and cash equivalents, beginning of the war 14,816,000 9,515,000
Cash and cash equival id of period $.11,862900 4 7,515,000