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NATIONAL BEVERAGE CORP - Quarter Report: 2007 October (Form 10-Q)

National Beverage Corp.
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UNITED STATES SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 10-Q
QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934
For the quarterly period ended October 27, 2007
Commission file number 1-14170
NATIONAL BEVERAGE CORP.
(Exact name of registrant as specified in its charter)
(NATIONAL BEVERAGE LOGO)
     
Delaware   59-2605822
(State of incorporation)   (I.R.S. Employer Identification No.)
     
One North University Drive, Ft. Lauderdale, FL   33324
(Address of principal executive offices)   (Zip Code)
(954) 581-0922
(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 o
Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, or a non-accelerated filer. See definition of “accelerated filer and large accelerated filer” in Rule 12b-2 of the Exchange Act.
 
Large Accelerated Filer o   Accelerated Filer x   Non-accelerated Filer o
Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes o     No x
The number of shares of registrant’s common stock outstanding as of November 28, 2007 was 45,614,054.
 
 

 


 

NATIONAL BEVERAGE CORP.
QUARTERLY REPORT ON FORM 10-Q
INDEX
             
        Page
PART I — FINANCIAL INFORMATION
       
 
           
  Financial Statements        
 
           
 
  Condensed Consolidated Balance Sheets as of October 27, 2007 and April 28, 2007     3  
 
           
 
  Condensed Consolidated Statements of Income for the three and six months ended October 27, 2007 and October 28, 2006     4  
 
           
 
  Condensed Consolidated Statements of Cash Flows for the six months ended October 27, 2007 and October 28, 2006     5  
 
           
 
  Notes to Condensed Consolidated Financial Statements     6  
 
           
  Management’s Discussion and Analysis of Financial Condition and Results of Operations     9  
 
           
  Quantitative and Qualitative Disclosures About Market Risk     12  
 
           
  Controls and Procedures     12  
 
           
PART II — OTHER INFORMATION
       
 
           
  Submission of Matters to a Vote of Security Holders     13  
 
           
  Exhibits     13  
 EX-31.1 Section 302 Certification of CEO
 EX-31.2 Section 302 Certification of PFO
 EX-32.1 Section 906 Certification of CEO
 EX-32.2 Section 906 Certification of PFO

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PART I — FINANCIAL INFORMATION
ITEM 1. FINANCIAL STATEMENTS
NATIONAL BEVERAGE CORP. AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
AS OF OCTOBER 27, 2007 AND APRIL 28, 2007

(In thousands, except share amounts)
 
                 
    (Unaudited)  
    October 27,     April 28,  
    2007     2007  
Assets
               
Current assets:
               
Cash and equivalents
  $ 41,142     $ 65,579  
Trade receivables — net of allowances of $360 ($325 at April 28, 2007)
    46,680       51,976  
Inventories
    42,385       44,062  
Deferred income taxes — net
    2,893       2,209  
Prepaid and other assets
    7,797       9,681  
 
           
Total current assets
    140,897       173,507  
Property — net
    56,942       57,369  
Goodwill
    13,145       13,145  
Intangible assets — net
    1,899       1,899  
Other assets
    10,556       11,712  
 
           
 
  $ 223,439     $ 257,632  
 
           
 
               
Liabilities and Shareholders’ Equity
               
Current liabilities:
               
Accounts payable
  $ 44,054     $ 54,333  
Accrued liabilities
    18,117       19,271  
Income taxes payable
    61       2,219  
 
           
Total current liabilities
    62,232       75,823  
Deferred income taxes — net
    15,038       15,217  
Income tax liability
    3,012        
Other liabilities
    8,477       9,231  
Shareholders’ equity:
               
Preferred stock, 7% cumulative, $1 par value — 1,000,000 shares authorized; 150,000 shares issued; no shares outstanding
    150       150  
Common stock, $.01 par value — 75,000,000 shares authorized; 49,646,838 shares issued
(49,538,370 shares at April 28, 2007)
    496       496  
Additional paid-in capital
    25,385       24,847  
Retained earnings
    126,649       149,868  
Treasury stock — at cost:
               
Preferred stock — 150,000 shares
    (5,100 )     (5,100 )
Common stock — 4,032,784 shares
    (12,900 )     (12,900 )
 
           
Total shareholders’ equity
    134,680       157,361  
 
           
 
  $ 223,439     $ 257,632  
 
           
See accompanying Notes to Condensed Consolidated Financial Statements.

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NATIONAL BEVERAGE CORP. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF INCOME
FOR THE THREE MONTHS AND SIX MONTHS ENDED OCTOBER 27, 2007
AND OCTOBER 28, 2006

(In thousands, except per share amounts)
 
                                 
    (Unaudited)  
    Three Months Ended     Six Months Ended  
    2007     2006     2007     2006  
Net sales
  $ 143,528     $ 135,818     $ 295,292     $ 285,954  
Cost of sales
    99,003       91,905       204,376       192,086  
 
                       
Gross profit
    44,525       43,913       90,916       93,868  
Selling, general and administrative expenses
    34,830       35,361       70,430       70,433  
Interest expense
    25       27       51       51  
Other income — net
    373       444       747       809  
 
                       
Income before income taxes
    10,043       8,969       21,182       24,193  
Provision for income taxes
    3,566       3,220       7,520       8,685  
 
                       
Net income
  $ 6,477     $ 5,749     $ 13,662     $ 15,508  
 
                       
 
                               
Net income per share —
                               
Basic
  $ .14     $ .13     $ .30     $ .34  
 
                       
Diluted
  $ .14     $ .12     $ .30     $ .34  
 
                       
Dividends per share
  $     $     $ .80     $  
 
                       
 
                               
Average common shares outstanding — basic
    45,902       45,757       45,857       45,745  
Dilutive stock options
    204       305       258       313  
 
                       
Average common shares outstanding — diluted
    46,106       46,062       46,115       46,058  
 
                       
See accompanying Notes to Condensed Consolidated Financial Statements.

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NATIONAL BEVERAGE CORP. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
FOR THE SIX MONTHS ENDED OCTOBER 27, 2007 AND OCTOBER 28, 2006

(In thousands)
 
                 
    (Unaudited)  
    2007     2006  
Operating Activities:
               
Net income
  $ 13,662     $ 15,508  
Adjustments to reconcile net income to net cash provided by operating activities:
               
Depreciation and amortization
    5,852       6,135  
Deferred income tax benefit
    (330 )     (238 )
Loss (gain) on disposal of property, net
    24       (41 )
Stock-based compensation
    137       163  
Changes in assets and liabilities:
               
Trade receivables
    5,296       4,650  
Inventories
    1,677       (4,039 )
Prepaid and other assets
    2,008       (2,091 )
Accounts payable
    (10,279 )     (7,363 )
Accrued and other liabilities, net
    (1,757 )     2,927  
 
           
Net cash provided by operating activities
    16,290       15,611  
 
           
 
               
Investing Activities:
               
Marketable securities purchased
    (237,995 )     (233,825 )
Marketable securities sold
    237,995       233,825  
Property additions
    (4,425 )     (4,416 )
Proceeds from sale of assets
    8       59  
 
           
Net cash used in investing activities
    (4,417 )     (4,357 )
 
           
 
               
Financing Activities:
               
Common stock cash dividend
    (36,711 )      
Proceeds from stock options exercised
    155       230  
Stock-based tax benefits
    246       461  
 
           
Net cash (used in) provided by financing activities
    (36,310 )     691  
 
           
 
               
Net (Decrease) Increase in Cash and Equivalents
    (24,437 )     11,945  
 
               
Cash and Equivalents — Beginning of Year
    65,579       42,119  
 
           
 
               
Cash and Equivalents — End of Period
  $ 41,142     $ 54,064  
 
           
 
               
Other Cash Flow Information:
               
Interest paid
  $ 52     $ 53  
Income taxes paid
    7,553       5,683  
See accompanying Notes to Condensed Consolidated Financial Statements.

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NATIONAL BEVERAGE CORP. AND SUBSIDIARIES
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
OCTOBER 27, 2007
(UNAUDITED)

 
1. BASIS OF PRESENTATION
National Beverage Corp. develops, manufactures, markets and distributes a complete portfolio of multi-flavored soft drinks, juice drinks, water and specialty beverages throughout the United States. Incorporated in Delaware in 1985, National Beverage Corp. is a holding company for various operating subsidiaries. When used in this report, the terms “we,” “us,” “our,” “Company” and “National Beverage” mean National Beverage Corp. and its subsidiaries.
The accompanying unaudited condensed consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States (“GAAP”) and rules and regulations of the Securities and Exchange Commission for interim financial information. The financial statements do not include all information and notes required by GAAP for complete financial statements. In our opinion, all adjustments (consisting of normal recurring adjustments) considered necessary for a fair presentation have been included. Results for the interim periods presented are not necessarily indicative of results which might be expected for the entire fiscal year.
These interim financial statements should be read in conjunction with the audited consolidated financial statements and notes thereto included in the Company’s Annual Report on Form 10-K for the fiscal year ended April 28, 2007.
2. INVENTORIES
Inventories are stated at the lower of first-in, first-out cost or market. Inventories at October 27, 2007 are comprised of finished goods of $24,189,000 and raw materials of $18,196,000. Inventories at April 28, 2007 are comprised of finished goods of $24,356,000 and raw materials of $19,706,000.
3. PROPERTY
Property consists of the following:
                 
    (In thousands)  
    October 27,     April 28,  
    2007     2007  
Land
  $ 8,915     $ 8,915  
Buildings and improvements
    38,989       38,898  
Machinery and equipment
    127,606       123,556  
 
           
Total
    175,510       171,369  
Less accumulated depreciation
    (118,568 )     (114,000 )
 
           
Property — net
  $ 56,942     $ 57,369  
 
           

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Depreciation expense was $2,468,000 and $4,820,000 for the three-month and six-month periods ended October 27, 2007, respectively, and $2,554,000 and $5,097,000 for the three-month and six-month periods ended October 28, 2006, respectively.
4. DEBT
A subsidiary maintains unsecured revolving credit facilities aggregating $45 million (the “Credit Facilities”) with banks. The Credit Facilities expire through December 2008 and bear interest at 1/2% below the banks’ reference rate or .6% above LIBOR, at the subsidiary’s election. At October 27, 2007, $3.2 million of the Credit Facilities was used for standby letters of credit and $41.8 million was available for future borrowings.
The Credit Facilities require the subsidiary to maintain certain financial ratios and contain other restrictions, none of which are expected to have a material impact on our operations or financial position. Significant financial ratios and restrictions include: fixed charge coverage; net worth ratio; and limitations on incurrence of debt. At October 27, 2007, we were in compliance with all loan covenants and approximately $25 million of retained earnings were restricted from distribution.
5. COMMON STOCK
On June 22, 2007, the Company distributed a 20% stock dividend to shareholders of record on June 4, 2007. Net income per share, average common shares outstanding and share amounts have been restated to give retroactive effect to the 20% stock dividend.
On August 17, 2007, the Company paid a cash dividend of $.80 per share, aggregating $36.7 million, to shareholders of record on July 20, 2007.
On August 23, 2007, the Company amended its Certificate of Incorporation to increase the number of authorized shares of capital stock from 51,000,000 to 76,000,000 and to increase the authorized number of shares of common stock from 50,000,000 to 75,000,000.
In January 1998, the Board of Directors authorized the purchase of up to 800,000 shares of National Beverage common stock. There were no shares purchased during the six months ended October 27, 2007. Aggregate shares purchased since January 1998 were 502,060 and are classified as treasury stock.
6. INCOME TAXES
In June 2006, the FASB issued FASB Interpretation No. 48, “Accounting for Uncertainty in Income Taxes” (“FIN 48”), which provides guidance on the financial statement recognition, measurement, reporting and disclosure of uncertain tax positions taken or expected to be taken in a tax return. FIN 48 addresses the determination of whether tax benefits, either permanent or temporary, should be recorded in the financial statements. We adopted FIN 48 at the beginning of fiscal 2008 and recognized a $2.7 million liability for uncertain tax positions, which amount is reported in “Income tax liability” in our Condensed Consolidated Balance Sheet. In addition, retained earnings were reduced by $170,000 from the cumulative effect of adoption.

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As of the beginning of fiscal 2008, the total amount of gross unrecognized tax benefits was $2.4 million, of which $2.0 million related to unrecognized benefits that would impact our effective tax rate over time, if recognized. In addition, we accrue interest and any necessary penalties related to unrecognized tax positions in our provision for income taxes. As of the beginning of fiscal 2008, we accrued approximately $255,000 of gross interest. As of October 27, 2007, the liability for uncertain tax positions aggregated $3.0 million, which included accrued interest of $407,000.
We file annual income tax returns in the United States (“U.S.”) federal jurisdiction and in various U.S. state and local jurisdictions. A number of years may elapse before an uncertain tax position, for which we have unrecognized tax benefits, is audited and finally resolved. While it is often difficult to predict the final outcome or the timing of resolution of any particular uncertain tax position, we believe that our unrecognized tax benefits reflect the most probable outcome. We adjust these unrecognized tax benefits, as well as the related interest, in light of changing facts and circumstances. Settlement of any particular uncertain tax position would usually require the use of cash. The resolution of a matter could be recognized as an adjustment to our provision for income taxes and our effective tax rate in the period of resolution. The Internal Revenue Service has concluded its examination of the Company’s federal income tax returns through fiscal 2004 and income tax returns for subsequent fiscal years are subject to examination. Generally, the income tax returns for the various state jurisdictions are subject to examination for fiscal years ending after fiscal 2002.
7. STOCK-BASED COMPENSATION
During the six months ended October 27, 2007, options for 35,200 shares were granted at a weighted average exercise price of $9.09 and options for 108,468 shares were exercised at a weighted average exercise price of $1.43. At October 27, 2007, options to purchase 742,221 shares at a weighted average exercise price of $4.56 were outstanding and stock-based awards to purchase 3,207,984 shares of common stock were available for grant.
8. CHANGES IN ACCOUNTING STANDARDS
Management has reviewed the current and proposed changes in accounting standards and does not expect any of these changes to have a material impact on the Company.

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ITEM 2. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS
OVERVIEW
National Beverage Corp. develops, manufactures, markets and distributes a complete portfolio of quality beverage products throughout the United States. Incorporated in Delaware in 1985, National Beverage Corp. is a holding company for various operating subsidiaries. In this report, the terms “we,” “us,” “our,” “Company” and “National Beverage” mean National Beverage Corp. and its subsidiaries.
We consider ourselves to be a leader in the development and sale of flavored beverage products in the United States, offering the widest selection of flavored soft drinks, juices, sparkling waters and energy drinks. Our flavor development spans over 100 years originating with our flagship brands, Shasta® and Faygo®, each of which has over 50 flavor varieties. We also maintain a diverse line of flavored beverage products geared to the health-conscious consumer, including Everfresh®, Home Juice®, and Mr. Pure® 100% juice and juice-based products; and LaCroix®, Mt. Shasta™, Crystal Bay® and ClearFruit® flavored and spring water products. In addition, we produce energy drinks and powdered beverage products, including Rip It®, Rip It Chic™, FREEK™ and PowerBlast™. Other products include Ohana® fruit-flavored drinks and St. Nick’s® holiday soft drinks. Substantially all of our brands are produced in thirteen manufacturing facilities that are strategically located in major metropolitan markets throughout the continental United States. To a lesser extent, we develop and produce soft drinks for certain retailers and beverage companies (“allied brands”).
Our strategy emphasizes the growth of our products by offering a branded beverage portfolio of proprietary flavors; by supporting the franchise value of regional brands and expanding those brands with distinctive packaging and broader demographic emphasis; by developing and acquiring innovative products tailored toward healthy lifestyles; and by appealing to the “quality-price” expectations of the family consumer. We believe that the “regional share dynamics” of our brands perpetuate consumer loyalty within local regional markets, resulting in more retailer sponsored promotional activities.
Over the last several years, we have focused on increasing penetration of our brands in the convenience channel through Company-owned and independent distributors. The convenience channel consists of convenience stores, gas stations, and other smaller “up-and-down-the-street” accounts. Because of the higher retail prices and margins that typically prevail, we have undertaken several measures to expand convenience channel distribution in recent years. These include development of products specifically targeted to this market, such as ClearFruit, Crystal Bay, Rip It, Rip It Chic, FREEK and PowerBlast. Additionally, we have created proprietary and specialized packaging for these products with distinctive graphics. We intend to continue our focus on enhancing growth in the convenience channel through both specialized packaging and innovative product development.
Beverage industry sales are seasonal with the highest volume typically realized during the summer months. Additionally, our operating results are subject to numerous factors, including fluctuations in the costs of raw materials, changes in consumer preference for beverage products and competitive pricing in the marketplace.

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RESULTS OF OPERATIONS
Three Months Ended October 27, 2007 (second quarter of fiscal 2008) compared to
Three Months Ended October 28, 2006 (second quarter of fiscal 2007)
Net sales for the second quarter of fiscal 2008 increased 5.7% to $143.5 million compared to the second quarter of fiscal 2007. The net sales increase reflects case volume growth of 7.9% for the Company’s energy drinks, juices and waters along with the effect of a 13.0% improvement in unit pricing due to product mix and price increases instituted to recover higher raw material costs. This improvement was partially offset by a 9.6% decline in carbonated soft drink volume including the continued phase out of allied branded products.
Gross profit approximated 31.0% of net sales for the second quarter of fiscal 2008 compared to 32.3% of net sales for the second quarter of fiscal 2007. The decline in gross margin was due to higher raw material costs and the effect of lower volume partially offset by the higher unit pricing mentioned above and a $.9 million business interruption insurance recovery. Cost of goods sold per unit increased approximately 15.2%.
Selling, general and administrative expenses were $34.8 million or 24.3% of net sales for the second quarter of fiscal 2008 compared to $35.4 million or 26.0% of net sales for last year. The decrease in expenses is due to lower marketing and administrative expenses.
Other income includes interest income of $378,000 (fiscal 2008) and $444,000 (fiscal 2007). The decline in interest income is due to lower average investment balances related to the dividend payment.
The Company’s effective rate for income taxes, based upon estimated annual income tax rates, approximated 35.5% of income before taxes for the second quarter of fiscal 2008 and 35.9% for the comparable period in fiscal 2007. The difference between the effective rate and the federal statutory rate of 35% was primarily due to the effects of state income taxes, nondeductible expenses and nontaxable interest income.
Net income was $6.5 million for the second quarter of fiscal 2008 compared to $5.7 million for the second quarter of fiscal 2007.
Six Months Ended October 27, 2007 (first six months of fiscal 2008) compared to
Six Months Ended October 28, 2006 (first six months of fiscal 2007)
Net sales for the first six months of fiscal 2008 increased 3.3% to $295.3 million compared to the first six months of fiscal 2007. Led by higher sales of Rip It, the case volume of the Company’s energy drinks, juices and waters increased 7.9%. The volume increase in higher priced products along with the effect of price increases instituted to recover raw material cost increases resulted in a 15.7% improvement in unit pricing. This improvement was partially offset by a 14.4% decline in carbonated soft drink volume including the continued phase out of allied branded products.
Gross profit approximated 30.8% of net sales for the first six months of fiscal 2008 compared to 32.8% of net sales for the first six months of fiscal 2007. The decline in gross margin was due to higher raw material costs and the effect of lower volume partially offset by the higher unit pricing mentioned above. Cost of goods sold per unit increased approximately 19.2%.

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Selling, general and administrative expenses were $70.4 million or 23.9% of net sales for the first six months of fiscal 2008 compared to $70.4 million or 24.6% of net sales for the comparable period in fiscal 2007. Fiscal 2008 results were impacted by higher distribution and administrative expenses offset by lower marketing expenses.
Other income includes interest income of $740,000 (fiscal 2008) and $769,000 (fiscal 2007). The decline in interest income is due to lower average investment balances.
The Company’s effective rate for income taxes, based upon estimated annual income tax rates, approximated 35.5% of income before taxes for the first six months of fiscal 2008 and 35.9% for the comparable period in fiscal 2007. The difference between the effective rate and the federal statutory rate of 35% was primarily due to the effects of state income taxes, nondeductible expenses and nontaxable interest income.
Net income was $13.7 million for the first six months of fiscal 2008 compared to $15.5 million for the first six months of fiscal 2007.
LIQUIDITY AND FINANCIAL CONDITION
Liquidity and Capital Resources
Our current sources of capital are cash flows from operations and borrowings under existing credit facilities. We maintain unsecured revolving credit facilities aggregating $45 million of which $3.2 million was used for standby letters of credit at October 27, 2007. There was no debt outstanding under the credit facilities. We believe that our capital resources are sufficient to fund our capital expenditures, dividends and working capital requirements for the foreseeable future.
On June 22, 2007, the Company distributed a 20% stock dividend to shareholders of record on June 4, 2007. On August 17, 2007, the Company paid a cash dividend of $.80 per share, aggregating $36.7 million, to shareholders of record on July 20, 2007.
Cash Flows
During the first six months of fiscal 2008, $16.3 million was provided from operating activities, which was offset by $4.4 million used for investing activities and $36.3 million used for financing activities. Cash used in financing activities reflects the cash dividend paid in August 2007.
Financial Position
During the first six months of fiscal 2008, our working capital decreased $19.0 million to $78.7 million primarily due to the $36.7 million cash dividend payment. Trade receivables, inventory and accounts payable decreased due to lower volume related primarily to seasonality. The current ratio was 2.3 to 1 at October 27, 2007 and April 28, 2007.

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Recently Adopted Accounting Standards
At the beginning of fiscal 2008, the Company adopted FIN 48, which did not have a material impact on the consolidated financial statements. See Note 6 of Notes to Condensed Consolidated Financial Statements for additional information.
FORWARD-LOOKING STATEMENTS
Certain statements in this Quarterly Report on Form 10-Q (this “Form 10-Q”) constitute “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. Such forward-looking statements involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of the Company to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements. Such factors include, but are not limited to, the following: general economic and business conditions; pricing of competitive products; success in acquiring other beverage businesses; success of new product and flavor introductions; fluctuations in the costs of raw materials; our ability to increase prices; continued retailer support for our products; changes in consumer preferences; success of implementing business strategies; changes in business strategy or development plans; government regulations; regional weather conditions; and other factors referenced in this Form 10-Q. We disclaim an obligation to update any such factors or to publicly announce the results of any revisions to any forward-looking statements contained herein to reflect future events or developments.
ITEM 3. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK
There are no material changes to the disclosures made on this matter in the Company’s Annual Report on Form 10-K for the fiscal year ended April 28, 2007.
ITEM 4. CONTROLS AND PROCEDURES
The Company, under the supervision and with the participation of management, including the Chief Executive Officer and the Principal Financial Officer, evaluated the effectiveness of our “disclosure controls and procedures” (as defined in Rule 13a—15(e) under the Securities Exchange Act of 1934 (the “Exchange Act”)) as of the end of the period covered by this report. Based on that evaluation, the Chief Executive Officer and the Principal Financial Officer concluded that our disclosure controls and procedures are effective in timely making known to them material information required to be disclosed in our reports filed or submitted under the Exchange Act. There has been no change in our internal control over financial reporting that occurred during our most recent fiscal quarter that has materially affected, or is reasonably likely to materially affect, our internal control over financial reporting.

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PART II — OTHER INFORMATION
ITEM 4. SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS
At the company’s Annual Meeting of Shareholders held October 5, 2007, Mr. S. Lee Kling and Mr. Joseph P. Klock, Jr. were re-elected to the Board of Directors for a three-year term. Of the 44,446,670 shares voted, 44,130,453 shares were voted for the election of Mr. S. Lee Kling (316,217 shares were withheld) and 44,132,269 shares were voted for the election of Mr. Joseph P. Klock, Jr (314,401 shares were withheld).
ITEM 6. EXHIBITS
     
Exhibit No.   Description
31.1
  Certification of Chief Executive Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002
 
   
31.2
  Certification of Principal Financial Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002
 
   
32.1
  Certification of Chief Executive Officer pursuant to Section 906 of the Sarbanes-Oxley Act of 2002
 
   
32.2
  Certification of Principal Financial Officer pursuant to Section 906 of the Sarbanes-Oxley Act of 2002

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SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.
Date: December 6, 2007
         
  National Beverage Corp.
(Registrant)
 
 
  By:   /s/ Dean A. McCoy    
    Dean A. McCoy   
    Senior Vice President and Chief Accounting Officer   
 

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