Barbeques Galore Reports Fiscal 2004 Third Quarter Results.Business Editors LAKE FOREST, Calif.--(BUSINESS WIRE)--Dec. 2, 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 nine-month periods ended October October: see month. 31, 2003:
Three Months Ended Nine Months Ended
October 31, October 31,
In US$ thousands except per
share data
------------------- -----------------------
2003 2002 2003 2002
---------- -------- ------------ ----------
Net Sales
Australia(a) 24,327 21,727 53,233 47,999
U.S. 23,836 21,407 81,858 80,501
---------- -------- ------------ ----------
Total net sales 48,163 43,134 135,091 128,500
Net Income (loss) 487 (443) (2,985) 1,462
Diluted Earnings Per Share 0.12 (b) (0.11) (0.73) (c) 0.35 (d)
Comparable Store Sales
Australia (in Australian
$'s) -6.8% +10.9
U.S. (in US $'s) +12.7% +1.7
(a) In Australian dollars 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 , net sales Net Sales The amount a seller receives from the buyer after costs associated with the sale are deducted. Notes: This amount is calculated by subtracting the following items from gross sales: merchandise returned for credit, allowances for damaged or missing goods, freight for the third quarter in 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. declined 6.9% from the corresponding period last year. (b) The diluted earnings per share diluted earnings per share An earnings measure calculated by dividing net income less preferred stock dividends for a period by the average number of shares of common stock that would be outstanding if all convertible securities were converted into shares of for the third quarter included a non-recurring after tax gain of $0.37 per share related to the sale of two properties at the company's head office facility in 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. , Australia. (c) The diluted earnings per share for the nine months ended October 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 Manufacturing operations concern the operation of a facility, as opposed to maintenance, supply and distribution, health, and safety, emergency response, human resources, security, information technology and other infrastructural support organizations. in Sydney, Australia and included the gain of $0.37 per share related to the sale of the properties referred to in Note b. (d) The diluted earnings per share for the nine months ended October 31, 2002 included compensation related to the closure of its Chatswood, Australia store offset by other store relocation RELOCATION, Scotch law, contracts. To let again to renew a lease, is called a relocation. 2. When a tenant holds over after the expiration of his lease, with the consent of his landlord, this will amount to a relocation. and closure costs in the U.S., equivalent to $0.35 per share. "Third quarter results were mixed, with our U.S. operations turning in an excellent performance, and our Australian Australian pertaining to or originating in Australia. Australian bat lyssavirus disease see Australian bat lyssavirus disease. Australian cattle dog a medium-sized, compact working dog used for control of cattle. stores experiencing the effects of more intense competition, particularly for lower end products, along with the Rugby World Cup For the rugby league competition, see . The Rugby World Cup is the premier international rugby union competition. The event is organised by the sport's governing body, the International Rugby Board (IRB), and is contested by the men's national teams. over a 6-week period and unusually inclement in·clem·ent adj. 1. Stormy: inclement weather. 2. Showing no clemency; unmerciful. in·clem weather, which adversely affected sales growth," 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 the U.S., we are experiencing good sales momentum and are planning to resume our expansion program with the opening of six new stores next year," Linz said. "Our newest store, which features an entirely new, upscale format, opened in Jacksonville, Florida “Jacksonville” redirects here. For other uses, see Jacksonville (disambiguation). Jacksonville is the largest city in the state of Florida and the county seat of Duval County. over Thanksgiving Thanksgiving annual U.S. holiday celebrating harvest and yearly blessings; originated with Pilgrims (1621). [Am. Culture: EB, IX: 922] See : America Thanksgiving national holiday with luxurious dinner as chief ritual. [Am. Pop. weekend. We also recently opened a new concept store in Australia that features a comprehensive line of backyard products and are planning to open five new stores in Australia next year." Currently, Barbeques Galore is finalizing the sale of three of its four owned Australian properties and plans to consolidate Consolidate To combine the assets, liabilities, and other financial items of two or more entities into one. Notes: This term is generally used in the context of consolidated financial statements. the company's Sydney distribution center and corporate headquarters on its one remaining property. Linz said the company realized a gain of approximately ap·prox·i·mate adj. 1. Almost exact or correct: the approximate time of the accident. 2. $2.2 million during the quarter from the sale of two of its properties in Australia. He said alliances with manufacturers in China are in place and working well and that the company expects to realize the full benefits of having products sourced in China next year. He also said new marketing campaigns in both countries are in process and are expected to help boost sales. Subsequent to the close of the fiscal 2004 third quarter, Barbeques Galore closed its Navy exchange store in Pearl Harbor Pearl Harbor, land-locked harbor, on the southern coast of Oahu island, Hawaii, W of Honolulu; one of the largest and best natural harbors in the E Pacific Ocean. In the vicinity are many U.S. military installations, including the chief U.S. . The average exchange rate between the Australian dollar and the US dollar for the 2004 third fiscal quarter increased 22.5% to A$1=US$0.6693 from A$1=US$0.5464 last year. The average exchange rate for the first nine months of fiscal 2004 rose 18.8% to A$1=US$0.6461 from A$1=US$0.5440 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 38 stores in Australia. In addition, it has 9 franchised stores in the U.S. and 48 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 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. 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, the success of its new store formats and its new marketing and advertising campaign, plans with regard to store openings 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
CONSOLIDATED STATEMENTS OF OPERATIONS
(Unaudited)
In US $ thousands, except share and per share data
Third Quarter Ended Nine Months Ended
October 31, October 31,
2003 2002 2003 2002
Net Sales
Australia $ 24,327 $ 21,727 $ 53,233 $ 47,999
U.S. 23,836 21,407 81,858 80,501
Total net sales 48,163 43,134 135,091 128,500
Cost of goods
sold, warehouse,
distribution &
occupancy costs 34,452 30,744 97,095 91,233
Gross profit 13,711 12,390 37,996 37,267
Selling, general
& administrative
expenses 14,986 12,698 41,570 36,402
Store pre opening
costs 9 11 9 11
Relocation and
closure (gains)
costs - 3 (405) (1,970)
Operating income
(loss) (1,284) (322) (3,178) 2,824
Equity in income
of affiliates 97 64 140 189
Interest expense 363 339 992 901
Other
expense/(income) (2,197) - 328 -
Income before tax 647 (597) (4,358) 2,112
Income tax
expense
(benefit) 160 (154) (1,373) 650
Net income (loss) $ 487 $ (443) $ (2,985) $ (1,462)
Basic earnings
per share $ 0.12 $ (0.11) $ (0.73) $ 0.36
Diluted earnings
per share $ 0.12 $ (0.11) $ (0.73) $ 0.35
Weighted average
shares
outstanding
Basic 4,117 4,117 4,117 4,117
Diluted 4,205 4,117 4,117 4,143
US$/A$ conversion
rate 0.6693 0.5464 0.6461 0.5440
BARBEQUES GALORE LIMITED AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS
(Unaudited)
In Australian $ thousands, except share and per share data
Third Quarter Ended Nine Months Ended
October 31, October 31,
2003 2002 2003 2002
Net Sales
Australia $ 36,347 $ 39,763 $ 82,235 $ 88,359
U.S. 35,613 39,178 126,857 147,874
Total net sales 71,960 78,941 209,092 236,233
Cost of goods sold,
warehouse, distribution &
occupancy costs 51,474 56,642 150,436 167,797
Gross profit 20,486 22,299 58,656 68,436
Selling, general &
administration expenses 22,391 22,826 64,446 67,008
Store pre opening costs 14 21 14 21
Relocation and closure
(gains) costs - 5 (611) (3,537)
Operating income (loss) (1,919) (553) (5,193) 4,944
Equity in income of
affiliates 145 117 226 356
Interest expense 542 620 1,540 1,669
Other expense/(income) (3,283) - 922 -
Income before tax 967 (1,056) (7,429) 3,631
Income tax expense
(benefit) 239 (295) (2,329) 1,095
Net income (loss) $ (728) $ (761) (5,100) 2,536
Basic earnings per share $ 0.18 $ (0.18) $ (1.24) $ 0.62
Diluted earnings per share $ 0.17 $ (0.18) $ (1.24) $ 0.61
Weighted average shares
outstanding
Basic 4,117 4,117 4,117 4,117
Diluted 4,205 4,117 4,117 4,143
BARBEQUES GALORE LIMITED AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
In US $ thousands
October 31, January 31,
2003 2003
------------- ------------
(Unaudited)
Assets
Current assets:
Cash and cash equivalents $ 23 $ 22
Accounts receivable, net 8,756 5,583
Inventories 46,609 37,012
Deferred income taxes 2,112 1,681
Prepaid expenses and other current assets 1,011 851
------------- ------------
Total current assets 58,511 45,149
Non-current assets:
Accounts receivable, net 3,394 -
Receivables from affiliates 814 732
Property, plant and equipment, net 16,445 18,910
Goodwill, net 772 663
Deferred income taxes 2,531 1,139
Other non-current assets 2,308 1,839
------------- ------------
Total assets $ 84,775 $ 68,432
============= ============
Liabilities and shareholders' equity
Current liabilities:
Bank overdraft $ 828 $ -
Accounts payable and accrued liabilities 23,722 16,485
Payables to related parties 63 11
Current portion of obligations under
capital leases 1,005 1,635
Income taxes payable - 773
------------- ------------
Total current liabilities 25,618 18,904
Non-current liabilities:
Long-term debt 22,972 12,433
Obligations under capital leases,
excluding current portion 1,845 1,801
Other long-term liabilities 910 135
------------- ------------
Total liabilities $ 51,345 $ 33,273
------------- ------------
Shareholders' equity:
Ordinary shares, no par value; authorized
27,437,853 shares; 4,541,652 issued
shares; 4,116,652 outstanding shares 28,700 23,967
Accumulated other comprehensive income
(related to currency translation) (2,233) 1,650
Retained earnings 8,510 10,834
------------- ------------
34,977 36,451
Less: Treasury Stock at cost -- 425,000
ordinary shares (1,547) (1,292)
------------- ------------
Total shareholders' equity 33,430 35,159
------------- ------------
Total liabilities and shareholders'
equity $ 84,775 $ 68,432
============= ============
Exchange rate used to convert balance
sheet items from A$ to US$ 0.7046 0.5884
BARBEQUES GALORE LIMITED AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
In Australian $ thousands
October 31, January 31,
2003 2003
------------- -------------
(Unaudited)
Assets
Current assets:
Cash and cash equivalents $ 33 $ 38
Accounts receivable, net 12,427 9,489
Inventories 66,149 62,903
Deferred income taxes 2,997 2,857
Prepaid expenses and other current
assets 1,435 1,445
------------- -------------
Total current assets 83,041 76,732
Non-current assets:
Accounts receivable, net 4,817 -
Receivables from affiliates 1,155 1,244
Property, plant and equipment, net 23,339 32,138
Goodwill, net 1,096 1,126
Deferred income taxes 3,592 1,936
Other non-current assets 3,276 3,126
------------- -------------
Total assets $ 120,316 $ 116,302
============= =============
Liabilities and shareholders' equity
Current liabilities:
Bank overdraft $ 1,175 $ -
Accounts payable and accrued liabilities 33,667 28,018
Payables to related parties 90 18
Current portion of obligations under
capital leases 1,426 2,778
Income taxes payable - 1,314
------------- -------------
Total current liabilities 36,358 32,128
Non-current liabilities:
Long-term debt 32,602 21,132
Obligations under capital leases,
excluding current portion 2,619 3,060
Other long-term liabilities 1,292 229
------------- -------------
Total liabilities $ 72,871 $ 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) (3,170) 2,804
Retained earnings 12,078 18,412
------------- -------------
49,641 61,949
Less: Treasury Stock at cost -- 425,000
ordinary shares (2,196) (2,196)
------------- -------------
Total shareholders' equity 47,445 59,753
------------- -------------
Total liabilities and shareholders'
equity $ 120,316 $ 116,302
============= =============
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