Barbeques Galore Limited (Nasdaq:BBQZ) today announced record results for its second fiscal quarter ended July 31, 2000.
Net income rose 79.3% to $1.6 million for the second fiscal quarter, or $0.33 per diluted share, from $880,000, or $0.19 per diluted share, reported in the corresponding quarter of last year.
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The company recorded net sales of $46.0 million for the second quarter, an increase of 11.1% over the $41.4 million a year ago. Net sales in the U.S. climbed 14.5% to $32.0 million from $27.9 million in the prior year period. Net sales in Australia totaled $14.0 million (A$23.9 million), an increase of 4.3% from $13.5 million (A$20.4 million) last year, and in Australian dollars increased 17.1%. Same store sales in the U.S. increased 4.0% for the second fiscal quarter and at its Australian locations increased 13.2%.
The gross margin for the quarter improved to 33.8% of total sales from 33.1% reported in the same period last year. Operating income for the quarter advanced 55.9% to $2.9 million from $1.9 million in the corresponding prior year period.
The average exchange rate between the Australian dollar and the U.S. dollar for the second fiscal quarter ended July 31, 2000 was A$1 = US$0.59, and for the corresponding quarter last year, A$1 = US$0.66.
As previously reported, the wholesale sales tax, which applied in Australia, was abolished, and a retail goods and services tax introduced, effective July 1, 2000. To make proper comparisons for reporting purposes, the wholesale sales tax on Australian sales has been removed from the July 1999 sales and the sales for July 2000 do not include the goods and services tax.
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By GlobalData“Results for the second quarter were gratifying and demonstrate the company’s ability to continue to execute its growth strategy,” said Sam Linz, Executive Chairman of Barbeques Galore. “We will continue to expand in our niche markets in the U.S. by rolling out stores in existing and new areas.”
During the second quarter, Barbeques Galore entered the Southeast Florida market for the first time, opening a store in Coral Springs, near Miami. The company also opened a store in La Mesa in San Diego County. In the current quarter, one new store has already opened in Fresno and additional stores are scheduled to open in Milpitas, California, and in Southeast Florida, with the opening of a store in Plantation.
“Our new store in Coral Springs features the full Omaha Steaks store-within-a-store program,” said Linz. “Significantly expanded product selections, along with dedicated Omaha Steaks personnel, should help drive repeat traffic to this store. We anticipate rolling out this program in selected new, as well as existing locations.”
In the second quarter, the company relocated its Newcastle store in New South Wales and refurbished its store in Cannington, Western Australia. One additional store will be refurbished this fiscal year in Australia.
For the first six months of the current fiscal year, total company net sales increased 13.4% to $80.7 million from $71.2 million last year. Net sales in the U.S. climbed 19.0% to $51.9 million from $43.6 million in the corresponding prior year period. Net sales in Australia totaled $28.9 million (A$48.1 million), an increase of 4.6% from $27.6 million (A$42.4 million) reported last year, and in Australian dollars increased 13.4%. Same store sales for the first half of fiscal 2001 increased 7.1% in the U.S. and increased 9.4% in Australia.
The gross margin for the six-month period of the current fiscal year improved to 32.5% of total sales from 31.6% reported for the first half of the prior year. Operating income advanced 162.7% to $1.9 million from $733,000 in the corresponding six-month period last year.
Net income for the first six months of fiscal 2001 increased to $763,000, or $0.16 per diluted share, from $3,000, or $0.00 per diluted share, reported in the first half of 1999.
The average exchange rate between the Australian dollar and the U.S. dollar for the six-month period ended July 31, 2000 was A$1 = US$0.60, and for the corresponding period last year, A$1 = US$0.65.
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 60 stores in the U.S. and 35 stores in Australia. In addition, it has 11 franchised stores in the U.S. and 49 licensed stores in Australia. Through its e-commerce 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. Such statements include, but are not limited to, growing demand for the company’s products, 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 filings from time to time with the Securities and Exchange Commission.
BARBEQUES GALORE LIMITED
CONSOLIDATED STATEMENTS OF OPERATIONS
(unaudited)
In U.S. dollars thousands, except per share data
Second Quarter Ended Six-Months Ended
---------------------- ------------------
July 31 July 31
---------------------- ------------------
2000 1999 2000 1999
---- ---- ---- ----
Sales
Australia $ 14,049 $ 13,465 $ 28,852 $ 27,584
U.S 31,966 27,920 51,889 43,589
-------- -------- -------- --------
Total sales 46,015 41,385 80,741 71,173
-------- -------- -------- --------
Cost of goods sold 30,458 27,679 54,488 48,704
Gross profit 15,557 13,706 26,253 22,469
-------- -------- -------- --------
Selling, general
and administrative
expenses 12,638 11,790 24,046 21,348
Store pre-opening
costs 34 66 281 388
Operating income 2,885 1,850 1,926 733
-------- -------- -------- --------
Equity in income
of affiliates (21) 84 (10) 107
Interest expense
(net of income) 415 374 740 707
Income before tax 2,449 1,560 1,176 133
-------- -------- -------- --------
Income tax expense 871 680 413 130
Net income $ 1,578 $ 880 $ 763 $ 3
======== ======== ======== ========
Earnings per share
Basic $ 0.35 $ 0.19 $ 0.17 $ 0.00
======== ======== ======== ========
Diluted $ 0.33 $ 0.19 $ 0.16 $ 0.00
======== ======== ======== ========
Weighted average
shares outstanding
Basic 4,542 4,542 4,542 4,542
======== ======== ======== ========
Diluted 4,757 4,662 4,763 4,650
======== ======== ======== ========
US$/A$ conversion
rate 0.5867 0.6585 0.5978 0.6508
BARBEQUES GALORE LIMITED
CONSOLIDATED STATEMENTS OF OPERATIONS
(unaudited)
In Australian dollars thousands, except per share data
Second Quarter Ended Six-Months Ended
---------------------- ------------------
July 31 July 31
---------------------- ------------------
2000 1999 2000 1999
---- ---- ---- ----
Sales
Australia $ 23,946 $ 20,448 $ 48,090 $ 42,384
U.S 54,484 42,399 86,980 66,978
--------- --------- --------- ---------
Total sales 78,430 62,847 135,070 109,362
--------- --------- --------- ---------
Cost of goods sold 51,914 42,033 91,108 74,837
Gross profit 26,516 20,814 43,962 34,525
--------- --------- --------- ---------
Selling, general
and administrative
expenses 21,541 17,904 40,148 32,803
Store pre-opening
costs 58 100 461 596
Operating income 4,917 2,810 3,353 1,126
--------- --------- --------- ---------
Equity in income
of affiliates (36) 127 (18) 165
Interest expense
(net of income) 707 568 1,237 1,087
Income before tax 4,174 2,369 2,098 204
--------- --------- --------- ---------
Income tax expense 1,485 1,033 738 199
Net income $ 2,689 $ 1,336 $ 1,360 $ 5
========= ========= ========= =========
Earnings per share
Basic $ 0.59 $ 0.29 $ 0.30 $ 0.00
========= ========= ========= =========
Diluted $ 0.57 $ 0.29 $ 0.29 $ 0.00
========= ========= ========= =========
Weighted average
shares outstanding
Basic 4,542 4,542 4,542 4,542
========= ========= ========= =========
Diluted 4,757 4,662 4,763 4,650
========= ========= ========= =========
BARBEQUES GALORE LIMITED
CONSOLIDATED BALANCE STATEMENT
In Australian dollar thousands
July 31, January 31,
2000 2000
--------- -----------
(unaudited)
Assets
Current assets:
Cash and cash equivalents 34 33
Accounts receivable, net 11,616 14,792
Inventories 69,580 54,022
Deferred income taxes 2,502 2,368
Prepaid expenses and other
current assets 1,984 1,039
-------- --------
Total current assets 85,715 72,254
Non-current assets:
Receivables from affiliates 1,798 748
Property, plant and equipment, net 39,131 34,970
Goodwill, net 1,283 1,327
Deferred income taxes 1,675 1,646
Other non-current assets 1,535 1,934
Total assets 131,138 112,879
======== ========
Liabilities and shareholders' equity
Current liabilities:
Bank overdraft 225 --
Accounts payable and accrues
liabilities 23,703 26,014
Payables to related parties 573 700
Payables to affiliates -- 47
Current maturities of long-term debt 24 22
Current portion of obligations under
capital leases 2,738 2,405
Income taxes payable (1,985) 1,856
-------- --------
Total current liabilities 25,278 31,044
Non-current liabilities:
Long-term debt 38,324 20,692
Obligations under capital leases,
excluding current portion 6,955 5,237
Other long-term liabilities 1,444 983
Total liabilities 72,001 57,956
-------- --------
Shareholders' equity:
Ordinary shares, $3.64 par value;
authorized 27,437,853 shares 40,733 40,733
Accumulated other comprehensive
income 3,959 1,105
Retained earnings 14,445 13,085
-------- --------
Total shareholders' equity 59,137 54,923
-------- --------
Total liabilities and
shareholders' equity 131,138 112,879
======== ========
