SLAN OVE RPORATION Consolidated Financial Statements Second Quarter Close November 28, 2021Hanover Foods Corporation Consolidated Balance Sheets Nov. 28, May 30, Nov. 29, Assets 2021 2021 2020 Current assets Cash and cash equivalents $ 5,568,000 $ 8,237,000 $ 11,862,000 Accounts and notes receivable, net 34,872,000 25,230,000 35,676,000 Inventories: Finished goods 111,952,000 106,102,000 ‘110,159,000 Raw materials and supplies 35,952,000 33,628,000 39,343,000 Prepaid expenses 17,722,000 18,969,000 16,603,000 Income tax receivable é 3,988,000 3,852,000 2,290,000 Total current assets 210,054,000 ___196,018,000__215,933,000 Noncurrent assets Property, plant and equipment, at cost: Land and buildings 115,696,000 114,660,000 113,239,000 Machinery and equipment 212,108,000 208,757,000 199,165,000 Leasehold improvements 792,000 792,000 845,000 328,596,000 324,209,000 313,249,000 Less accumulated depreciation and amortization 228,394,000___—223,846,000_219,581,000 100,202,000 100,363,000 ‘93,668,000 Construction in progress 26,969,000 17,734,000 18,265,000 Total property, plant and equipment 127,171,000___118,097,000__111,933,000, Goodwill 3,923,000 3,923,000 3,923,000 Intangible assets 4,480,000 4,530,000. 4,580,000 Right-of-use assets, operating, net 3,888,000 3,888,000 4,877,000 Other assets 10,247,000 9,518,000 3,827,000 Total noncurrent assets 149,709,000 __139,956,000__128,940,000 Total assets $ 359,763,000 __$ 335,974,000 __$ 344,873,000Hanover Foods Corporation Consoli jated Balance Sheets Nov. 28, May 30, Nov. 29, ies and stockholders’ equity 2021, 2021 2020 Current liabilities Notes payable - banks $ 39,093,000 $ 13,066,000 $ 41,510,000 Accounts payable 15,098,000, 16,757,000 14,878,000 ‘Accrued expenses 19,661,000 14,218,000 17,665,000 Operating lease liabilities 31,647,000, 1,647,000 1,332,000, Total current liabilities 75,499,000 45,688,000 ___75,385,000 Noncurrent liabilities Deferred income taxes 3,389,000 3,389,000 3,222,000 Operating lease liabilities 2,241,000 2,241,000 3,345,000, ‘Noted payable 22,269,000 24,276,000 : Other labilties 19,121,000) 18,964,000 __ 10,917,000 Total noncurrent liabil 47,020,000 48,870,000___17,484,000 Total liabilities 122,519,000 94,558,000 ___ 92,869,000 Stockholders! equity Series A & B 8.25% cumulative convertible preferred stock 773,000 773,000 73,000 Series C cumulative convertible preferred stock 250,000 250,000 250,000 Common stock, class A - nonvoting. 8,734,000 8,734,000 8,734,000 ‘Common stock, class B - voting 21,213,000 21,213,000 21,213,000 Capital paid in excess of par value 35,046,000 35,046,000 35,046,000 Retained earnings 224,588,000 228,710,000 232,751,000 ‘Treasury stock at cost (51,339,000) (51,339,000) (50,041,000) ‘Accumulative other comprehensive income (2,021,000) (1,971,000) 3,278,000 Total stockholders’ equity 237,244,000 241,416,000 252,004,000 ‘Total liabilities and stockholders’ equity $__ 359,763,000 __$ 335,974,000 _$ 344,873,000HANOVER FOODS CORPORATION ‘CONSOLIDATED STATEMENTS OF STOCKHOLDERS’ EQUITY amt converte esas ta) ‘related Seer Cam cone otatptats ‘other Swctolser? __AuniB__ Prefered Sates, Commonsoc\GouA conmonstoccas's crcestofper_ Retaned_ienystck _ Compre auty Ges — Amo Stes Angatt Stores anourt Stes ate ‘eeu “iret ano ‘ucome Trea aa Eweidaooo sash $7000 19005 $vsgano —se83ei Sa7s4G00 —wosra 7134009 HDeEsw —E HENNE sosSA ESL aw STO Net taming Formato (eaag00) ere) cn oes er sare Pelee #20628 annua 2x00) x00) Common $130asnuay (31900) som) purse of Soko tmsoye Steck Owners Fe ‘ter conprehese ome (30900) oom aa Ta z 5 peso ae zmHanover Foods Corporation Consolidated Statements of Earnings For the Six Months Ended Nov. 28, Nov. 29, 2021 2020 Net sales $ 186,859,000 — $ 191,529,000 Cost of goods sold 177,965,000 169,310,000 Gross profit 8,894,000 22,219,000 Selling expenses 6,255,000 6,096,000 Administrative expenses 8,278,000 8,524,000 Operating profit (5,639,000) 7,599,000 Interest expense 419,000 92,000 Other (income) expense, net (755,000) (2,517,000) Earnings before income taxes (5,303,000) 10,024,000 Income taxes (1,591,000) 3,007,000 Net earnings (3,712,000) 7,017,000 Dividends on preferred stock 21,000 20,000 Net earnings applicable to common stock $ _ (3,733,000) _$ 6,997,000Hanover Foods Corporation Consolidated Statements of Comprehensive Income Nov. 28, Nov. 29, 2021 2020 ‘Net earnings $ (3,712,000) _$ 7,017,000 Other Comprehensive Income (oss) Unrealized gain (loss) on securities, net of reclassification adjustment (50,000) (35,000) and Others (net of taxes) Other Comprehensive Income (loss) (50,000) (35,000) Comprehensive Income $ $ 6,982,000Hanover Foods Corporation Consolidated Statements of Cash Flows For the Six Months Ended Nov. 28, Nov. 23, 2021 2020 Cash flows from operating activities Net earnings $ (3,712,000) $7,017,000 Adjustments to reconcile net earnings to net ‘ash provided by operating activities Depreciation and amortization 4,725,000 4,326,000 (Gain) Loss on disposal of fixed assets 75,000 (2,616,000) Deferred income taxes ° 0 Changes in assets and liabilities Accounts receivable, net (9,642,000) (2,612,000) Inventories, net (8,174,000) (30,245,000) Prepaid expenses and other assets 468,000 (99,000) Accounts payable and accrued expenses 3,784,000 2,765,000 Income taxes receivable (136,000) 2,786,000 Other liabilities 157,000 (280,000) Net cash provided by (used in) operating activi (12,455,000) (26,958,000) Cash flows used in investing activities Acquisitions of property, plant and equipment (23,824,000) (13,520,000) Proceeds from disposal of property, plant and equipment 0 2,028,000 Net cash provided by (used in) investing activities (23,824,000) (11,482,000) Cash flows from financing activities Proceeds from (payments on) notes payable, net 24,020,000 26,070,000 Repurchase of stock o (20,000) Payment of dividends (410,000) (404,000) Net cash provided by (used in) financing activities 23,610,000 25,656,000 Net increase (decrease) in cash and cash equivalents (2,669,000) (2,784,000) Cash and cash equivalents, beginning of the year 8,237,000 14,646,000 ash and cash equivalents end of period $5,568,000 $ 11,862,000