Golden Enterprises Inc. (GLDC)

[lukematt]

Quarterly Results Press Release


I am a Golden Enterprises (symbol: GLDC) shareholder, and although my long-term hopes for the company are high, improvements can come in near-term increments.

1. Yesterday’s quarterly results announcement was “bare bones” as usual. Most other companies that I follow include significantly fuller explanations and balance sheets in their press releases. In GLDC’s case, by contrast, I must always wait for their 10-Q (or 10-K) SEC filing.

2. Good ol’ Golden Enterprises. They declared the regular quarterly dividend. (…but it’s the second consecutive quarter where the dividend has exceeded the net income per share—with only $442,756 in cash according to the last 10-Q and 11,789,305 shares outstanding according to the current press release, such generosity may end *this quarter*).

3. When the 10-Q is filed, I’ll be looking for answers to these questions:

• According to the press release: “Net income in the first quarter was adversely impacted by continued increases in commodity cost and a one time cost associated with the re-alignment of the eastern portion of our route system”.

I need to see the amount of increase for commodity costs and the amount of the one-time cost for re-alignment of routes. I expected ZERO cost for route re-alignment. In fact, I even expected an immediate benefit.

If GLDC only re-aligned “the eastern portion of our route sales system”, we could see future one-time costs for the southern portion, the northwest portion, etc….

• According to the press release, “The Company has been able to increase its prices to its consumers during the first quarter of 2009 in an effort to offset…a weak dollar.”

Somebody really needs to explain to me how a weak dollar affects GLDC to such an extent that it even needs to be mentioned in the company’s press release. GLDC sells only in the southeastern U.S. Its “commodities” presumably come from the U.S. only. My read: “a weak dollar” is a fashionable excuse.