Barbeques Galore Reports Fourth Quarter and Fiscal Year End Financial Results; Net Sales Increased 25% and Earnings Per Share Grew 13% for the Fiscal Year.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)--March 9, 1999--Barbeques Galore Limited (Nasdaq:BBQZY) today reported financial results for its fourth quarter and fiscal year ended January January: see month. 31, 1999. 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 fourth quarter were A$75.7 million (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. ), a 15.8% increase over net sales of A$65.4 million in the corresponding quarter last year. For the fiscal year ended January 31, 1999, net sales were a record A$225.0 million, a 25.4% increase over net sales of A$179.3 million in the corresponding period last year. In the fourth quarter, sales in the U.S. increased 30.4% to US$13.9 million, equivalent to A$22.1 million, from US$10.6 million (A$15.8 million) in the prior year period. Australian sales were A$53.6 million, an 8.2% increase over Australian sales of A$49.6 million in last year's fourth quarter. Comparable store sales increased 10.1% at the Company's U.S. locations and 4.2% at its Australian locations. Gross margin for the quarter was 32.8% of total sales compared to 33.0% in the year-ago period, primarily due to pricing pressures on low-end low-end adj. 1. Cheapest in a line of merchandise: low-end subcompact cars. 2. Informal Of, relating to, or intended for low-income consumers; downscale: barbecues 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. and to sales mix sales mix See product mix. at the Company's new U.S. stores. Selling, general and administrative expenses, excluding store pre-opening expenses, were 23.8% of total sales compared to 22.7% in the fourth quarter last year, reflecting increased promotional activity in Australia. Operating income Operating Income The profit realized from a business' own operations. Notes: This would not include income from things such as investments in other firms. Also referred to as operating profit or recurring profit. for the fourth quarter was A$6,697,000, an increase over pro forma As a matter of form or for the sake of form. Used to describe accounting, financial, and other statements or conclusions based upon assumed or anticipated facts. The phrase pro forma operating income of A$6,473,000 in the same quarter of the prior year. Interest expense as a percent of sales grew moderately versus the corresponding quarter of the prior fiscal year, reflecting the interest cost related to the acquisition of warehouse and distribution properties in Australia during the past year and increased working capital requirements Capital requirements Financing required for the operation of a business, composed of long-term and working capital plus fixed assets. . Income tax expense also increased on a year to year basis due to a higher effective tax rate. Net income for the fourth quarter was A$3,859,000, or A$0.85 per share, compared to pro forma net income of A$4,231,000, or A$0.93 per share, in the same quarter last year. The pro forma results reflect capital structure changes as a result of the Company's initial public offering in November November: see month. 1997. For the fiscal year ended January 31, 1999, net sales in the U.S. increased 31.1% to US$59.2 million, equivalent to A$95.0 million, while U.S. same-store sales Same-store sales is a business term which refers to the revenue generated by one of a retail chain's specific outlets during a certain period of time (often a fiscal quarter or a particular shopping season), compared to an identical period in the past, usually in the previous year. increased 10.9% on a year to year basis. Net sales in Australia were A$130.0 million, a 10.5% increase over the prior fiscal year, and same-store sales in Australia were up 8.8% versus one year ago. Operating income for the fiscal year ended January 31, 1999 was A$9,670,000 a 23.8% increase over operating income of A$7,809,000 in the last fiscal year. Net income for the year was A$5,207,000, or A$1.15 per share, versus pro forma net income of A$4,644,000, or A$1.02 per share, in the same period a year ago. "We are very pleased with our fourth quarter sales performance, which followed a strong start to the summer selling season in Australia during the third quarter. Fourth quarter earnings per share translated to US$0.53, which was in line with expectations, and we achieved record results for the full fiscal year," 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 of 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. . "During the quarter, we opened four new stores -- Springfield Springfield. 1 City (1990 pop. 105,227), state capital and seat of Sangamon co., central Ill., on the Sangamon River; settled 1818, inc. as a city 1840. and Fredericksburg, Virginia Fredericksburg is an independent city in the U.S. Commonwealth of Virginia, 50 miles south of Washington, D.C., and 55 miles north of Richmond, Virginia. As of the 2000 census, the city had a population of 19,279. , and San Antonio San Antonio (săn ăntō`nēō, əntōn`), city (1990 pop. 935,933), seat of Bexar co., S central Tex., at the source of the San Antonio River; inc. 1837. and Austin Austin. 1 City (1990 pop. 21,907), seat of Mower co., SE Minn., on the Cedar River, near the Iowa line; inc. 1868. The commercial and industrial center of a rich farm region, it is noted as home to the Hormel meatpacking company, whose Spam Town museum , Texas -- for a total of 10 new stores opened in the U.S. in fiscal 1999 and one store closure during the year. Our U.S. rollout plan in the current fiscal year focuses on further penetration The successful unauthorized breach of a security perimeter. See penetration test. of existing markets. So far in fiscal 2000, we have opened three new stores, including Towson Towson (tou`sən), uninc. city (1990 pop. 49,445), seat of Baltimore co., N Md., a residential and industrial suburb of Baltimore; settled c.1750. An important suburban business and government center, the city has varied manufactures. and Columbia, Maryland Columbia is a census-designated place and planned community in Howard County, Maryland, United States. It is a suburb of Baltimore, and, to a lesser degree, Washington, DC. It began with the idea that a city could enhance its residents' quality of life. and Charlotte, North Carolina “Charlotte” redirects here. For other uses, see Charlotte (disambiguation). Charlotte is the largest city in the state of North Carolina and the 20th largest city in the United States. . "We currently have an additional seven new U.S. locations committed and another two under negotiation. Additionally, four new franchise stores are scheduled to be opened in fiscal 2000. In Australia, we are on track for two new store openings, three store relocations and one store upgrade in fiscal 2000. "We believe our comparable store sales and net sales growth in both the U.S. and Australia in the fourth quarter reflect continued strong demand for our diverse, high-quality product offering. This momentum has continued into the current quarter, with extremely strong sales in the U.S. in February February: see month. 1999. "As we move into our busy U.S. summer season, we expect operating margins Operating Margin A ratio used to measure a company's pricing strategy and operating efficiency. Calculated by: to improve through greater leverage off a higher sales base in the U.S. "For the current fiscal year, we remain firmly committed to the successful execution of the growth strategy that led to our strong financial performance in fiscal 1999. This includes our new store expansion plan in the U.S., our store refurbishment re·fur·bish tr.v. re·fur·bished, re·fur·bish·ing, re·fur·bish·es To make clean, bright, or fresh again; renovate. re·fur program in Australia, continued promotional and marketing activities, and further investments in our infrastructure to support growth. "Also, we are developing an Internet Internet Publicly accessible computer network connecting many smaller networks from around the world. It grew out of a U.S. Defense Department program called ARPANET (Advanced Research Projects Agency Network), established in 1969 with connections between computers at the strategy that will allow us to sell products online in the U.S. The recently completed consolidation of our production facilities in Australia has streamlined the manufacturing process and should result in additional efficiencies. We also expect to achieve further operating efficiencies with our new distribution center and advanced computer system, both of which are scheduled to be operational by mid- mid- pref. Middle: midbrain. 1999. "Finally, the overall economic outlook remains positive for our business. The Australian economy has demonstrated resilience resilience (r  ·zilˑ·yens),n over the past year, and consumer confidence is now at one of its highest levels in the past five years. Barring any unforeseen events in overseas economies, we believe the current economic climate will prevail in Australia for the foreseeable fore·see tr.v. fore·saw , fore·seen , fore·see·ing, fore·sees To see or know beforehand: foresaw the rapid increase in unemployment. future. "In the U.S., the economy is currently very healthy, and we anticipate that strong consumer demand at retail will benefit us during the important second and third quarters in the U.S." 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 barbecues, fireside products and related accessories in the United States United States, officially United States of America, republic (2005 est. pop. 295,734,000), 3,539,227 sq mi (9,166,598 sq km), North America. The United States is the world's third largest country in population and the fourth largest country in area. and Australia. The Company currently owns and operates 33 stores in Australia and 49 stores in the United States. In addition, there are 7 franchised stores in the U.S. and 47 licensed stores in Australia. The press release may contain 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. that involve risks and uncertainties. Reference is made to the "Risk Factors" section of the Company's prospectus A document, notice, circular, advertisement, letter, or communication in written form or by radio or television that offers any security for sale, or confirms the sale of any security. dated November 7, 1997, which has been filed with the Securities and Exchange Commission, for factors that, among others, could cause the actual results of the Company to differ materially from those contained in the forward-looking statements. The following are Barbeques Galore Limited's unaudited results for the fourth quarter ended January 31, 1999 compared to the pro forma results for the fourth quarter ended January 31, 1998 -0-
Fourth Quarter ended Fourth Quarter ended
January 31, 1999 January 31, 1998
(in thousands except per share data)
A$ US$ A$ US$
Sales
Australia 53,608 33,612 49,560 33,265
U.S 22,097 13,855 15,832 10,626
------- ------- ------- -------
Total sales 75,705 47,467 65,392 43,891
------- ------- ------- -------
Cost of goods sold 50,841 31,877 43,836 29,423
------- ------- ------- -------
Gross profit 24,864 15,590 21,556 14,468
------- ------- ------- -------
Selling, general and
administration expenses 18,054 11,320 14,874 9,983
Store pre opening costs 138 87 189 127
Relocation and closure costs (25) (16) 20 13
Other operating income 0 0 0 0
------- ------- ------- -------
Operating income 6,697 4,199 6,473 4,345
------- ------- ------- -------
Equity in income of affiliates 84 53 210 141
Interest expense 663 416 444 298
Other expense/(income) 0 0 5 3
------- ------- ------- -------
Income before tax 6,118 3,836 6,234 4,185
------- ------- ------- -------
Income tax expense 2,259 1,416 2,003 1,344
------- ------- ------- -------
Net income 3,859 2,420 4,231 2,841
------- ------- ------- -------
Basic earnings per share 0.85 0.53 0.93 0.63
======= ======= ======= =======
Weighted average shares
outstanding 4,542 4,542 4,542 4,542
======= ======= ======= =======
US$/A$ conversion rate 0.6270 0.6712
(a) The pro forma results for the fourth quarter ended 31 January,
1998 exclude interest of A$0.019 million.
The following are Barbeques Galore Limited's audited results for
the year ended January 31, 1999 compared to the pro forma results for
the year ended January 31, 1998
Year ended Year ended
---------- ----------
January 31, 1999 January 31, 1998
---------------- ----------------
(in thousands except per share data)
A$ US$ A$ US$
Sales
Australia 130,011 81,049 117,613 86,093
U.S 94,973 59,206 61,712 45,173
-------- -------- -------- --------
Total sales 224,984 140,255 179,325 131,266
-------- -------- -------- --------
Cost of goods sold 152,708 95,198 122,072 89,357
-------- -------- -------- --------
Gross profit 72,276 45,057 57,253 41,909
-------- -------- -------- --------
Selling, general and
administration expenses 61,817 38,537 48,992 35,862
Store pre opening costs 810 505 435 318
Relocation and closure
costs (21) (13) 20 15
Other operating income 0 0 3 2
-------- -------- -------- --------
Operating income 9,670 6,028 7,809 5,716
-------- -------- -------- --------
Equity in income of
affiliates 514 320 552 404
Interest expense (net
of income) 2,163 1,348 1,596 1,168
Other expense/(income) 0 0 5 4
-------- -------- -------- --------
Income before tax 8,021 5,000 6,760 4,948
-------- -------- -------- --------
Income tax expense 2,814 1,754 2,116 1,549
-------- -------- -------- --------
Net income 5,207 3,246 4,644 3,399
-------- -------- -------- --------
Basic earnings per share 1.15 0.71 1.02 0.75
======== ======== ======== ========
Weighted average shares
outstanding 4,542 4,542 4,542 4,542
======== ======== ======== ========
US$/A$ conversion rate 0.6234 0.7320
(b) The pro forma results for the year ended 31 January, 1998 exclude
interest of A$1.738 million.
Barbeques Galore Limited
Condensed Consolidated Balance Sheets
January 31 January 31
1999 1998
In A$ thousands, except share and per
share data
Assets
Current assets:
Cash and cash equivalents 811 166
Accounts receivable, net 11,916 9,862
Receivables from affiliates 0 143
Inventories 47,095 43,030
Deferred income taxes 1,570 2,031
Prepaid expenses and other current assets 846 1,079
------- -------
Total current assets 62,238 56,311
------- -------
Non-current assets:
Receivables from affiliates 848 642
Property, plant and equipment, net 32,620 21,038
Goodwill, net 1,418 1,507
Deferred income taxes 2,198 1,194
Other non-current assets 1,880 1,382
------- -------
Total assets 101,202 82,074
------- -------
Liabilities and shareholders' equity
Current liabilities:
Accounts payable and accrued liabilities 16,753 16,648
Payables to related parties 1,060 0
Payables to affiliates 168 0
Current maturities of long-term debt 172 198
Current portion of obligations under capital
leases 2,029 1,729
Income taxes payable 2,062 819
------- -------
Total current liabilities 22,244 19,394
------- -------
Non-current liabilities:
Long-term debt 24,171 14,716
Obligations under capital leases, excluding
current portion 4,859 3,405
Other long-term liabilities 815 632
------- -------
Total liabilities 52,089 38,147
------- -------
Shareholders' equity:
Ordinary shares, $3.64 par value;
authorized 27,437,853 shares 16,532 16,532
Additional paid-in capital 24,202 24,555
Foreign currency translation adjustment 1,509 1,177
Retained earnings 6,870 1,663
------- -------
Total shareholders' equity 49,113 43,927
------- -------
------- -------
Total liabilities and shareholders' equity 101,202 82,074
------- -------
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