Barbeques Galore Reports Strong Second Fiscal Quarter Results; Net Sales in the U.S. Rise 30.1% in the All-Important Summer Selling Period.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)--Sept. 13, 1999-- 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. Ltd. (Nasdaq:BBQZY) Monday Monday: see week. reported financial results for its second quarter ended July July: 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 quarter were US$41.4 million, a 23.2% increase over net sales of US$33.6 million in the corresponding period last year. Sales 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. increased 30.4% to US$27.9 million from US$21.4 million in the prior year period. 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. sales increased 10.5% to US$13.5 million (A$20.4 million), from US$12.2 million (A$19.7 million), in last year's second quarter. Same store sales Same Store Sales A statistic used in retail industry analysis. It compares sales of stores that have been open for a year or more. Notes: This statistic allows investors to determine what portion of new sales has come from sales growth and what portion from the opening of increased 12.2% at the company's U.S. locations and 3.7% at its Australian locations. Gross margin for the quarter was 33.1% of total sales compared with 33.0% in the prior year period resulting from an improved product mix and buying efficiencies. 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 second quarter was US$1.8 million, an increase of 25.6% over operating income of US$1.5 million in the same quarter in the prior year. Net income grew 11.7% to US$880,000, or US$0.19 per share, from US$788,000, or US$0.17 per share in the corresponding quarter last year. "Results for the quarter reflect solid performance both 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. , underscoring the success of our growth strategies. They were particularly gratifying grat·i·fy tr.v. grat·i·fied, grat·i·fy·ing, grat·i·fies 1. To please or satisfy: His achievement gratified his father. See Synonyms at please. 2. in the U.S. where we experienced double-digit dou·ble-dig·it adj. Being between 10 and 99 percent: double-digit inflation. same store sales in the all-important all-im·por·tant adj. Of the greatest importance; crucial. all  -im·por summer selling period
and for the fifth consecutive quarter," 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."During the second quarter, we opened three new stores in the U.S., in Fort Worth, Texas Fort Worth is the fifth-largest city in the state of Texas, 18th-largest city in the United States[1], and voted one of "America’s Most Livable Communities. ; and Gaithersburg, Md.; and a franchise store in Orange County, Calif. In Australia, one new store was opened in Moorabbin, Melbourne Melbourne, city, Australia Melbourne, city (1991 pop. 2,761,995), capital of Victoria, SE Australia, on Port Phillip Bay at the mouth of the Yarra River. Melbourne, Australia's second largest city, is a rail and air hub and financial and commercial center. , and one store was relocated re·lo·cate v. re·lo·cat·ed, re·lo·cat·ing, re·lo·cates v.tr. To move to or establish in a new place: relocated the business. v.intr. within Hobart Hobart, city, Australia Hobart, city (1990 pop. 127,134), capital and principal port of Tasmania, SE Australia, at the foot of Mt. Wellington (4,166 ft/1,270 m high). Hobart's harbor is one of the finest in the world. , Tasmania Tasmania (tăzmā`nēə), island state (1991 pop. 359,286), 26,383 sq mi (68,332 sq km), SE Commonwealth of Australia. It is separated from Australia by the Bass Strait and lies 150 mi (240 km) south of the state of Victoria. , a strategic action to attract a larger customer base in that market," Linz continued. "Also during the quarter, in mid-May n. 1. the middle part of May. Noun 1. mid-May - the middle part of May period, period of time, time period - an amount of time; "a time period of 30 years"; "hastened the period of time of his recovery"; "Picasso's blue period" , we extended our market in the U.S. through the launch of our 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. site. We believe www.bbqgalore-online.com offers the world's largest variety of grills and related products, including exclusive Barbeques Galore products sold in our retail stores. Based on its initial reception, the site has already exceeded our expectations, and we look forward to increased sales growth through this channel." For the six months ended July 31, 1999, net sales were US$71.2 million, a 23.6% increase over net sales of US$57.6 million in the corresponding period last year. Net sales in the U.S. for the six months increased 33.5% to US$43.6 million from US$32.7 million in the prior-year period, while U.S. same store sales increased 13.9%. Net sales in Australia increased 10.5% to US$27.6 million (A$42.4 million) from US$25.0 million (A$39.5 million) in the same period in 1998, and same store sales in Australia increased 5.4%. Operating income for the six months ended July 31, 1999, was US$733,000 compared with $878,000 in the same period a year ago. The decrease was attributable mainly to higher store pre-opening expenses, advertising and staffing in the United States and increased rebates to Australian wholesale customers. Net income for the first half of the fiscal year was US$3,000 or $0.00 per share, compared with US$309,000, or US$0.07 per share, for the same period a year ago, mainly as a result of an increase in interest costs associated with the acquisition of capital equipment and property in Australia last year. "Our results for the six months were on track with our plan. Looking ahead to the second half of the fiscal year, we will continue our new store expansion and renovation strategy. The company will open up to an additional four stores in the U.S., and in Australia refurbish 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 or relocate re·lo·cate v. re·lo·cat·ed, re·lo·cat·ing, re·lo·cates v.tr. To move to or establish in a new place: relocated the business. v.intr. another two stores and open one new store," Linz added. Barbeques Galore is the leading chain of specialty retail stores devoted to sales of barbecues, fireside products and related accessories. The company owns and operates 34 stores in Australia and 53 stores in the United States. In addition, there are 10 franchised stores in the United States and 47 licensed stores in Australia. The company also offers a comprehensive line of products through its e-commerce Web site at www.bbqgalore-online.com. This news release contains 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 that could cause results to differ materially from those contained in these forward-looking statements. Such statements include, but are not limited to, the company's ability to open new stores, the success of its new e-commerce Web site, and other "Risk Factors" as mentioned in the company's prospectus dated November 7, 1997, which has been filed with the Securities and Exchange Commission, and other filings from time to time.
The following are Barbeques Galore Limited's unaudited results for the
second quarter ended July 31, 1999, compared with the second quarter
ended July 31, 1998:
Second quarter ended Second quarter ended
July 31, 1999 July 31, 1998
(in thousands except per-share data)
A$ US$ A$ US$
Sales
Australia 20,448 13,465 19,741 12,184
U.S. 42,399 27,920 34,692 21,412
Total Sales 62,847 41,385 54,433 33,596
Cost of goods sold 42,033 27,679 36,492 22,523
Gross Profit 20,814 13,706 17,941 11,073
Selling, general and
administration expenses 17,904 11,790 15,273 9,426
Store pre-opening costs 100 66 282 174
Relocation and closure costs 0 0 0 0
Other Operating income 0 0 0 0
Operating income 2,810 1,850 2,386 1,473
Equity in income of
affiliates 127 84 138 85
Interest expense 568 374 446 275
Other expense/(income) 0 0 0 0
Income before tax 2,369 1,560 2,078 1,283
Income tax expenses 1,033 680 802 495
Net income 1,336 880 1276 788
Basic earnings per share 0.29 0.19 0.28 0.17
Weighted average shares
outstanding 4,542 4,542 4,542 4,542
US$/A$ conversion rate 0.6585 0.6172
The following are Barbeques Galore Limited's unaudited results for the
six months ended July 31, 1999, compared with the six months ended
July 31, 1998:
Six months ended Six months ended
July 31, 1999 July 31, 1998
(in thousands except per-share data)
A$ US$ A$ US$
Sales
Australia 42,384 27,584 39,498 24,963
U.S. 66,978 43,589 51,679 32,661
Total Sales 109,362 71,173 91,177 57,624
Cost of goods sold 74,837 48,704 61,609 38,937
Gross Profit 34,525 22,469 29,568 18,687
Selling, general and
administration expenses 32,803 21,348 27,735 17,529
Store pre-opening costs 596 388 429 271
Relocation and closure costs 0 0 15 9
Other Operating income 0 0 0 0
Operating income 1,126 733 1,389 878
Equity in income of
affiliates 165 107 234 148
Interest expense 1,087 707 834 527
Other expense/(income) 0 0 0 0
Income before tax 204 133 789 499
Income tax expense 199 130 300 190
Net income 5 3 489 309
Basic earnings per share 0.00 0.00 0.11 0.07
Weighted average shares
outstanding 4,542 4,542 4,542 4,542
US$/A$ conversion rate 0.6508 0.6320
Barbeques Galore Limited
Condensed Consolidated Balance Sheets
In A$ thousands, except share and per-share data
July 31, January 31,
1999 1999
Assets
Current assets:
Cash and cash equivalents 30 811
Accounts receivable, net 10,646 11,916
Inventories 56,298 47,095
Deferred income taxes 2,903 2,238
Prepaid expenses and other
current assets 1,408 1,346
Total current assets 71,285 63,406
Non-current assets:
Receivables from affiliates 748 848
Property, plant and
equipment, net 34,567 32,620
Goodwill, net 1,372 1,418
Deferred income taxes 2,119 1,030
Other non-current assets 1,564 1,880
Total assets 111,655 101,202
Liabilities and shareholders' equity
Current liabilities:
Bank overdraft 3,677 0
Accounts payable and
accrued liabilities 21,073 16,753
Payables to related parties 781 1,060
Payables to affiliates -- 168
Current maturities of
long-term debt 39 172
Current portion of obligations
under capital leases 2,059 2,029
Income taxes payable -- 2,062
Total current liabilities 27,629 22,244
Non-current liabilities:
Long-term debt 29,106 24,171
Obligations under capital leases,
excluding current portion 5,189 4,859
Other long-term liabilities 1,485 815
Total liabilities 63,409 52,089
Shareholders' equity:
Ordinary shares, $3.64 par value;
authorized 27,437,853 shares 40,733 40,733
Accumulated other comprehensive income 638 1,509
Retained earnings 6,875 6,871
Total shareholders' equity 48,246 49,113
Total liabilities and shareholders'
equity 111,655 101,202
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