Barbeques Galore Reports Fiscal 2004 Second Quarter Results; Initiates Annual Dividend Policy.Business Editors IRVINE Irvine, town, Scotland Irvine (ûr`vĭn), town (1991 pop. 32,507), North Ayrshire, SW Scotland, on the Irvine River estuary. Industries include iron and brass foundries. Other products are chemicals, electric goods, and clothing. , Calif.--(BUSINESS WIRE)--Aug. 28, 2003 Barbeques Galore Barbeques Galore is an Australian chain of retail stores specializing in barbecue grills that also has a large presence in the United States. There are 84 stores in covering all of Australia, and 75+ stores in 10 American states. Limited (Nasdaq:BBQZ) today reported results for the three and six-month periods ended July July: see month. 31, 2003:
Three Months
Ended Six Months Ended
July 31, July 31,
In US$ thousands except per share
data
----------------- ------------------
2003 2002 2003 2002
-------- -------- --------- --------
Net Sales
Australia(a) 15,156 13,465 28,906 26,272
U.S. 36,564 35,742 58,022 59,094
-------- -------- --------- --------
Total net sales 51,720 49,207 86,928 85,366
Net Income 408 2,697 -3,472 1,905
Diluted Earnings Per Share 0.10 0.65 -0.84(b) 0.46(c)
Comparable Store Sales
Australia (in Australian $'s) +7.6% +2.4%
U.S. (in US $'s) +3.2% -1.2%
(a) In Australian dollars, net sales for the second quarter in
Australia declined 4.7% from the corresponding period last year
due to lower wholesale sales to the mass merchants.
(b) The diluted earnings per share -$0.84 for the six months ended
July 31, 2003 included a non-recurring after tax charge of $0.44
per share related to the company's previously advised down-sizing
of its manufacturing operations in Sydney, Australia.
(c) The diluted earnings per share of $0.46 for the six months ended
July 31, 2002 included compensation related to the closure of its
Chatswood, Australia store offset by other store relocation and
closure costs in the U.S., equivalent to $0.35 per share.
The board of directors declared de·clare v. de·clared, de·clar·ing, de·clares v.tr. 1. To make known formally or officially. See Synonyms at announce. 2. To state emphatically or authoritatively; affirm. 3. its second dividend as a NASDAQ listed company listed company n → compañía cotizable listed company n → société cotée en Bourse listed company list n → of $0.20 per share on its common stock, payable on September September: see month. 19, 2003 to shareholders on record on September 8, 2003. This dividend follows a decision by the board to initiate INITIATE. A right which is incomplete. By the birth of a child, the husband becomes tenant by the curtesy initiate, but his estate is not consummate until the death of the wife. 2 Bouv. Inst. n. 1725. a regular annual dividend policy based A decision made by any software application that is based on the policy (rules and regulations) of the organization. See policy and COPS. on the company's strong positive cashflow and growth expectations, as well as the favorable fa·vor·a·ble adj. 1. Advantageous; helpful: favorable winds. 2. Encouraging; propitious: a favorable diagnosis. 3. taxation treatment for dividends now prevailing in the U.S. and Australia Australia (ôstrāl`yə), smallest continent, between the Indian and Pacific oceans. With the island state of Tasmania to the south, the continent makes up the Commonwealth of Australia, a federal parliamentary state (2005 est. pop. . "We are pleased to see a lift in consumer confidence as reflected by improved sales in the U.S. during the quarter and beyond," said Sam (1) (Security Accounts Manager) The part of Windows NT that manages the database of usernames, passwords and permissions. A SAM resides in each server as well as in each domain controller. See PDC and trust relationship. Linz Linz (lĭnts), city (1991 pop. 203,044), capital of Upper Austria, NW Austria, a major port on the Danube River. It is a commercial and industrial center and a rail junction. , Executive Chairman. "In Australia, our downsized Sydney Sydney, city, Australia Sydney, city (1991 pop. 3,097,956), capital of New South Wales, SE Australia, surrounding Port Jackson inlet on the Pacific Ocean. Sydney is Australia's largest city, chief port, and main cultural and industrial center. plant now manufactures mainly wood heaters and small run barbecues, while the bulk of the company's barbecue barbecue [West Indian or South American], in the United States, traditionally an open-air gathering, political or social, in which meats are roasted whole over a pit of embers and food and drink are liberally enjoyed. products are being manufactured in China. These higher-margin products began flowing to the U.S. from China in the second quarter, and we have started shipments to Australia in time for our upcoming peak selling season. While we have begun to realize margin enhancements, we expect the full benefit will flow through during the next financial year. "A new marketing and advertising campaign is scheduled to launch across Australia in October October: see month. ," Linz added. "We believe this campaign, combined with the long term benefits from manufacturing alliances in China and our new store program, should position the company well for the future." The company said it is extending its heating offering in U.S. stores located in cold climates and revisiting growth opportunities in existing markets. During the second quarter in Australia, a temporary store was opened in Adelaide Adelaide, empress consort of Holy Roman Emperor Otto I Adelaide (ăd`əlād) or Adelheid (ä`dĕlhīt), c. to replace the Keswick Keswick may refer to: Geography A place in England:
Element of marketing concerned especially with the sale of goods and services to customers. One aspect of merchandising is advertising, which aims to capture the interest of the segment of the population most likely to buy the product. and an extensive outdoor offering, are on track for an opening in October this year. The average exchange rate between the Australian dollar Noun 1. Australian dollar - the basic unit of money in Australia and Nauru dollar - the basic monetary unit in many countries; equal to 100 cents and the US dollar for the 2004 second fiscal quarter increased 18.1% to A$1=US$0.6577 from A$1=US$0.5571 last year. The average exchange rate for the first half of fiscal 2004 rose 16.8% to A$1=US$0.6339 from A$1=US$0.5427 a year ago. Barbeques Galore is the leading chain of specialty A contract under seal. A specialty is a written document that has been sealed and delivered and is given as security for the payment of a specifically indicated debt. retail stores devoted to sales of barbecues, backyard accents, fireside products and related accessories. The company now owns and operates 63 stores in the U.S. and 36 stores in Australia. In addition, it has 9 franchised stores in the U.S. and 49 licensed stores in Australia. Through its U.S. e-commerce e-commerce, commerce conducted over the Internet, most often via the World Wide Web. E-commerce can apply to purchases made through the Web or to business-to-business activities such as inventory transfers. Web site, www.bbqgalore.com, the company sells an extensive line of barbecue and fireside products and related accessories. This press release contains forward looking statements that involve risks and uncertainties that could cause results to differ materially from those contained in these forward-looking statements forward-looking statement A projected financial statement based on management expectations. A forward-looking statement involves risks with regard to the accuracy of assumptions underlying the projections. . Such statements include, but are not limited to the company's ability to realize benefits from new, lower cost manufacturing alliances in China, its ability to successfully launch a revitalized re·vi·tal·ize tr.v. re·vi·tal·ized, re·vi·tal·iz·ing, re·vi·tal·iz·es To impart new life or vigor to: plans to revitalize inner-city neighborhoods; tried to revitalize a flagging economy. marketing and advertising campaign, its plans with regard to store openings and closing and other "Risk Factors" as mentioned in the company's filings from time to time with the Securities and Exchange Commission.
BARBEQUES GALORE LIMITED AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(Unaudited)
In US$ thousands, except share and per share data
Second Quarter
ended Six Months ended
----------------- -----------------
July 31 July 31
----------------- -----------------
2003 2002 2003 2002
-------- -------- -------- --------
Net Sales
Australia $15,156 $13,465 $28,906 $26,272
U.S. 36,564 35,742 58,022 59,094
-------- -------- -------- --------
Total net sales 51,720 49,207 86,928 85,366
-------- -------- -------- --------
Cost of goods sold, warehouse,
distribution & occupancy costs 36,282 34,057 62,643 60,489
-------- -------- -------- --------
Gross profit 15,438 15,150 24,285 24,877
-------- -------- -------- --------
Selling, general &
administration expenses 14,986 13,000 26,584 23,704
Relocation and closure (gains)
costs (438) (1,973) (405) (1,973)
-------- -------- -------- --------
Operating income (loss) 890 4,123 (1,894) 3,146
-------- -------- -------- --------
Equity in income of affiliates (67) 29 43 125
Interest expense 336 302 629 562
Other expense/(income) (74) 0 2,525 0
-------- -------- -------- --------
Income before tax 561 3,850 (5,005) 2,709
-------- -------- -------- --------
Income tax expense (benefit) 153 1,153 (1,533) 804
-------- -------- -------- --------
Net income (loss) $ 408 $ 2,697 $(3,472) $ 1,905
======== ======== ======== ========
Basic earnings per share $ 0.10 $ 0.66 $ (0.84) $ 0.46
======== ======== ======== ========
Diluted earnings per share $ 0.10 $ 0.65 $ (0.84) $ 0.46
======== ======== ======== ========
Weighted average shares outstanding
- Basic 4,117 4,117 4,117 4,117
======== ======== ======== ========
- Diluted 4,124 4,136 4,117 4,135
======== ======== ======== ========
US$/A$ conversion rate 0.6577 0.5571 0.6339 0.5427
BARBEQUES GALORE LIMITED AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(Unaudited)
In Australian $ thousands, except share and per share data
Second Quarter
ended Six Months ended
----------------- -------------------
July 31 July 31
----------------- -------------------
2003 2002 2003 2002
-------- -------- --------- ---------
Net Sales
Australia $23,044 $24,169 $ 45,888 $ 48,596
U.S. 55,594 64,157 91,244 108,696
-------- -------- --------- ---------
Total net sales 78,638 88,326 137,132 157,292
-------- -------- --------- ---------
Cost of goods sold, warehouse,
distribution & occupancy costs 55,165 61,132 98,962 111,155
-------- -------- --------- ---------
Gross profit 23,473 27,194 38,170 46,137
-------- -------- --------- ---------
Selling, general &
administration expenses 22,786 23,336 42,055 44,182
Relocation and closure (gains)
costs (666) (3,542) (611) (3,542)
-------- -------- --------- ---------
Operating income (loss) 1,353 7,400 (3,274) 5,497
-------- -------- --------- ---------
Equity in income of affiliates (102) 52 81 239
Interest expense 511 542 998 1,049
Other expense/(income) (113) 0 4,205 0
-------- -------- --------- ---------
Income before tax 853 6,910 (8,396) 4,687
-------- -------- --------- ---------
Income tax expense (benefit) 233 2,069 (2,568) 1,390
-------- -------- --------- ---------
Net income (loss) $ 620 $ 4,841 $ (5,828) $ 3,297
======== ======== ========= =========
Basic earnings per share $ 0.15 $ 1.18 $ (1.42) $ 0.80
======== ======== ========= =========
Diluted earnings per share $ 0.15 $ 1.17 $ (1.42) $ 0.80
======== ======== ========= =========
Weighted average shares
outstanding
- Basic 4,117 4,117 4,117 4,117
======== ======== ========= =========
- Diluted 4,124 4,136 4,117 4,135
======== ======== ========= =========
BARBEQUES GALORE LIMITED AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
In US $ thousands
July 31, January 31,
2003 2003
----------- -----------
(Unaudited)
Assets
Current assets:
Cash and cash equivalents $ 21 $ 22
Accounts receivable, net 6,621 5,583
Inventories 41,163 37,012
Deferred income taxes 3,579 1,681
Prepaid expenses and other current assets 1,144 850
----------- -----------
Total current assets 52,528 45,148
Non-current assets:
Receivables from affiliates 826 732
Property, plant and equipment, net 17,793 18,910
Goodwill, net 716 663
Deferred income taxes 870 1,139
Other non-current assets 2,069 1,839
----------- -----------
Total assets $ 74,802 $ 68,431
=========== ===========
Liabilities and shareholders' equity
Current liabilities:
Accounts payable and accrued liabilities $ 20,162 $ 16,486
Payables to related parties 58 10
Current portion of obligations under capital
leases 1,336 1,634
Income taxes payable - 773
----------- -----------
Total current liabilities 21,556 18,903
Non-current liabilities:
Long-term debt 18,472 12,434
Obligations under capital leases, excluding
current portion 1,718 1,800
Other long-term liabilities 102 135
----------- -----------
Total liabilities $ 41,848 $ 33,272
----------- -----------
Shareholders' equity:
Ordinary shares, no par value; authorized
27,437,853 shares; 4,541,652 issued shares;
4,116,652 outstanding shares 26,595 23,967
Accumulated other comprehensive income
(related to currency translation) (423) 1,650
Retained earnings 8,216 10,834
----------- -----------
34,388 36,451
Less: Treasury Stock at cost - 425,000
ordinary shares (1,434) (1,292)
----------- -----------
Total shareholders' equity 32,954 35,159
----------- -----------
Total liabilities and shareholders'
equity $ 74,802 $ 68,431
=========== ===========
Exchange rate used to convert balance sheet
items from A$ to US$ 0.6529 0.5884
BARBEQUES GALORE LIMITED AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
In Australian $ thousands
July 31, January 31,
2003 2003
----------- -----------
(Unaudited)
Assets
Current assets:
Cash and cash equivalents $ 32 $ 38
Accounts receivable, net 10,141 9,489
Inventories 63,046 62,903
Deferred income taxes 5,481 2,857
Prepaid expenses and other current assets 1,754 1,445
----------- -----------
Total current assets 80,454 76,732
Non-current assets:
Receivables from affiliates 1,265 1,244
Property, plant and equipment, net 27,253 32,138
Goodwill, net 1,096 1,126
Deferred income taxes 1,332 1,936
Other non-current assets 3,169 3,126
----------- -----------
Total assets $ 114,569 $ 116,302
=========== ===========
Liabilities and shareholders' equity
Current liabilities:
Accounts payable and accrued liabilities $ 30,881 $ 28,018
Payables to related parties 89 18
Current portion of obligations under capital
leases 2,046 2,778
Income taxes payable - 1,314
----------- -----------
Total current liabilities 33,016 32,128
Non-current liabilities:
Long-term debt 28,292 21,132
Obligations under capital leases, excluding
current portion 2,631 3,060
Other long-term liabilities 156 229
----------- -----------
Total liabilities $ 64,095 $ 56,549
----------- -----------
Shareholders' equity:
Ordinary shares, no par value; authorized
27,437,853 shares; 4,541,652 issued shares;
4,116,652 outstanding shares 40,733 40,733
Accumulated other comprehensive income
(related to currency translation) (647) 2,804
Retained earnings 12,584 18,412
----------- -----------
52,670 61,949
Less: Treasury Stock at cost - 425,000
ordinary shares (2,196) (2,196)
----------- -----------
Total shareholders' equity 50,474 59,753
----------- -----------
Total liabilities and shareholders'
equity $ 114,569 $ 116,302
=========== ===========
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