Barbeques Galore Reports Strong Second Quarter Results; Board Declares Special Dividend of $0.15 Per Share.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, 2002 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 continued improvement in operating results for the second fiscal quarter ended July July: see month. 31, 2002. The board of directors also 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 first dividend as a Nasdaq-listed company of $0.15 per share on its common stock, payable on September September: see month. 12, 2002 to shareholders of record on September 5, 2002. The company said its board will consider the viability of initiating a regular dividend policy. For the second quarter of fiscal 2003, net income rose significantly to $2.7 million, or $0.65 per diluted di·lute tr.v. di·lut·ed, di·lut·ing, di·lutes 1. To make thinner or less concentrated by adding a liquid such as water. 2. To lessen the force, strength, purity, or brilliance of, especially by admixture. share, from $1.0 million, or $0.23 per diluted share, in the corresponding quarter a year ago. As previously reported, the company received $2.2 million compensation related to the closure of its Chatswood, 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. store due to a leasehold An estate, interest, in real property held under a rental agreement by which the owner gives another the right to occupy or use land for a period of time. leasehold n. acquisition by the State Rail Authority. Excluding the compensation from Chatswood and U.S. 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, net income totaled $1.3 million, or $0.31 per diluted share. Total company 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 increased 5.3% to $49.2 million from $46.7 million in the prior-year period. In the U.S., net sales advanced 4.0% to $35.7 million from $34.3 million a year earlier. Net sales in Australia rose 9.0% to $13.5 million from $12.4 million. 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 for the current second quarter increased 1.6% in the U.S. and were marginally lower by 0.7% in Australia. 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 was A$1 = US$0.5571 for the second fiscal quarter ended July 31, 2002, compared with A$1 = US$0.5161, representing a 7.9% increase in the Australian dollar. "We are encouraged with the performance achieved for the past two quarters and are hopeful it is a sign of growing strength in our sector," 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. "The declaration of our first dividend as a Nasdaq company reflects, in part, the board's confidence in the long term outlook for Barbeques Galore and represents a means of rewarding our shareholders." Linz said the company is forging alliances with lower-cost manufacturers in China to further improve margins and complement its own 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. . The company is also introducing selected additional backyard accent items in its U.S. stores. In Australia, Linz said the company is scaling back its line of general camping goods and entering into an alliance with Australia-based Snowgum for certain adventure camping and hiking hiking Walking, often among hills or mountains, as recreational sport. It represents an activity in its own right and also figures in backpacking, camping, hunting, mountaineering, and orienteering. products. He also said Barbeques Galore will test a new 12,000 square-foot store, incorporating an extensive range of backyard products, in a major shopping mall shopping mall or shopping centre Collection of independent retail stores, services, and parking areas constructed and maintained by a management firm as a unit. It is a 20th-century adaptation of the historical marketplace. In the U.S. in 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. , due to open in October October: see month. this year. Strong second quarter results added to an improved first quarter to show continued momentum through the first half of fiscal 2003. The company posted net income of $1.9 million, or $0.46 per diluted share, for the six-month period ended July 31, 2002, compared to a net loss of $794,000, or a loss of $0.18 per share, in the corresponding period a year ago. Excluding the compensation from Chatswood and U.S. store relocation and closure costs, net income totaled $508,000, or $0.12 per diluted share. For the first six months of the current fiscal year, Barbeques Galore recorded an 8.0% increase in total company net sales to $85.4 million from $79.1 million in the same period a year earlier. Net sales in the U.S. rose 7.0% in the first half of fiscal 2003 to $59.1 million from $55.2 million a year ago. In Australia, net sales increased 10.0% to $26.3 million from $23.9 million last year, and advanced 4.8% in Australian dollars. Same store sales for the current first half rose in the U.S. by 3.9%, while 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. same store sales fell slightly by 0.7%. The average exchange rate between the Australian dollar and the US dollar for the six-month period ended July 31, 2002 was A$1 = US$0.5427 and for the corresponding period last year A$1 = US$0.5150, representing a 5.4% increase in the Australian dollar. 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 65 stores in the U.S. and 34 stores in Australia, including one heater outlet outlet /out·let/ (-let) a means or route of exit or egress. pelvic outlet the inferior opening of the pelvis. in 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. . In addition, it has 9 franchised stores in the U.S. and 50 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 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 our successful expansion of product categories, our plans with regard to store openings and closings and other "Risk Factors" as mentioned in our 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
Second Quarter Ended Six Months Ended
July 31 July 31
2002 2001 2002 2001
Sales
Australia 13,465 12,350 26,272 23,865
U.S. 35,742 34,367 59,094 55,217
Total sales 49,207 46,717 85,366 79,082
Cost of goods sold 34,057 31,737 60,489 54,906
Gross profit 15,150 14,980 24,877 24,176
Selling, general and
administrative expenses 13,000 13,248 23,704 24,559
Store pre opening costs -- 20 -- 46
Relocation and closure
(gains) costs (1,973) -- (1,973) --
Operating income (loss) 4,123 1,712 3,146 (429)
Equity in income of affiliates 29 19 125 15
Interest expense 302 363 562 740
Income (loss) before tax 3,850 1,368 2,709 (1,154)
Income tax expense (benefit) 1,153 378 804 (360)
Net income (loss) 2,697 990 1,905 (794)
Earnings per share
Basic 0.66 0.23 0.46 (0.18)
Diluted 0.65 0.23 0.46 (0.18)
Weighted average shares
outstanding
Basic 4,117 4,277 4,117 4,355
Diluted 4,136 4,277 4,135 4,355
US$/A$ conversion rate 0.5571 0.5161 0.5427 0.5150
BARBEQUES GALORE LIMITED AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS
(Unaudited)
In Australian $ thousands, except share and per share data
Second Quarter Ended Six Months Ended
July 31, July 31,
2002 2001 2002 2001
Sales
Australia 24,169 23,929 48,596 46,354
U.S. 64,157 66,589 108,696 107,193
Total sales 88,326 90,518 157,292 153,547
Cost of goods sold 61,132 61,493 111,155 106,612
Gross profit 27,194 29,025 46,137 46,935
Selling, general and
administrative expenses 23,336 25,669 44,182 47,697
Store pre-opening costs -- 38 -- 89
Relocation and closure
(gains) costs (3,542) -- (3,542) --
Operating income (loss) 7,400 3,318 5,497 (851)
Equity in income of affiliates 52 37 239 30
Interest expense 542 704 1,049 1,438
Income (loss) before tax 6,910 2,651 4,687 (2,259)
Income tax expense (benefit) 2,069 733 1,390 (704)
Net income (loss) 4,841 1,918 3,297 (1,555)
Earnings per share
Basic 1.18 0.45 0.80 (0.36)
Diluted 1.17 0.45 0.80 (0.36)
Weighted average shares
outstanding
Basic 4,117 4,277 4,117 4,355
Diluted 4,136 4,277 4,135 4,355
BARBEQUES GALORE LIMITED AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
In Australian $ thousands
July 31, 2002 January 31, 2002
(unaudited)
Assets
Current assets:
Cash and cash equivalents 33 35
Accounts receivable, net 12,668 13,238
Inventories 77,928 63,259
Deferred income taxes 1,864 1,182
Prepaid expenses and other
current assets 1,405 2,009
Total current assets 93,898 79,723
Non-current assets:
Receivables from affiliates 741 896
Property, plant and equipment, net 34,816 37,236
Goodwill, net 1,126 1,126
Deferred income taxes 3,304 3,600
Other non-current assets 2,396 2,515
Total assets 136,281 125,096
Liabilities and shareholders' equity
Current liabilities:
Accounts payable and accrued
liabilities 33,774 29,278
Payables to related parties 26 152
Current portion of obligations
under capital leases 2,717 2,289
Total current liabilities 36,517 31,719
Non-current liabilities:
Long-term debt 31,634 25,076
Obligations under capital leases,
excluding current portion 2,628 4,124
Other long-term liabilities 3,192 1,885
Total liabilities 73,971 62,804
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 5,446 8,725
Retained earnings 18,327 15,030
64,506 64,488
Less: Treasury stock at cost --
425,000 Ordinary shares (2,196) (2,196)
Total shareholders' equity 62,310 62,292
Total liabilities and
shareholders' equity 136,281 125,096
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