4th Quarter Earnings Announcement
Barbeques Galore Ltd. Reports Fourth-Quarter Revenue and Earnings Increases; Revenue up 22.0 Percent
March 19, 1998 04:13 PM
IRVINE, Calif.--(BUSINESS WIRE)--March 19, 1998--Barbeques Galore Ltd. BBQZY , a specialty retailer of barbecues and barbecue accessories, Thursday reported net sales of A$65.4 million for the quarter ended Jan. 31, 1998, versus A$53.5 million for the comparable period in 1997, a 22.2 percent increase. U.S. revenues for the period increased 46.1 percent to US$10.6 million (A$15.8 million), and Australian revenues for the period rose 11.9 percent to A$49.6 million. Comparable store sales increased 20.5 percent in the United States and 3.2 percent in Australia for the quarter. Pro forma operating income for the quarter of A$6.5 million was up 28.0 percent from A$5.1 million for the 1997 prior-year quarter. Fourth quarter earnings per share on a pro forma basis were A$0.91 (US$0.61), versus A$0.69 (US$0.55) for the comparable period in 1997. The pro forma results reflect capital structure changes as a result of the company's Initial Public Offering in November 1997. For the year ended Jan. 31, 1998, total sales were A$179.3 million, an increase of 20.9 percent over total sales of A$148.4 million for the comparable period in 1997. U.S. revenues for the year increased 41.7 percent to US$45.2 million (A$61.7 million), and Australian revenues increased 8.9 percent to A$117.6 million. Comparable store sales increased 18.8 percent in the United States and 5.0 percent in Australia for the year. Pro forma operating income for the year ended Jan. 31, 1998, increased to A$7.8 million from A$4.1 million in the prior year. Earnings per share on a pro forma basis for the year were A$1.00 (US$0.73), versus A$0.51 (US$0.40) per share for 1997. Sam Linz, executive chairman of the company, stated: "U.S. sales numbers continued their strong trend driven by increased awareness of the Barbeques Galore name. During the year, 10 new company-owned stores and one new franchised store were opened in the U.S. "In Australia, where the fourth quarter is the company's dominant sales period, the performance of the retail and wholesale divisions was extremely gratifying. This performance was enhanced by the flow through of manufacturing efficiencies resulting from the consolidation of our Australian production facilities." Barbeques Galore is the leading specialty retail chain of barbecues and barbecue accessory stores in the United States and Australia. The company owns and operates 122 stores under the Barbeques Galore name, with 37 owned stores in the United States and 33 in Australia. In addition, there are seven franchised stores in the United States and 45 licensed stores in Australia.
This news release may contain forward-looking statements that involve risks and uncertainties. Reference is made to the "Risk Factors" section of the company's prospectus dated Nov. 7, 1997, which has been filed with the Securities and Exchange Commission, for factors that, among others, could cause the actual results of the company to differ materially from those contained in the forward- looking statements.
BARBEQUES GALORE LTD.
Condensed Consolidated Balance Sheets
In A$ thousands, except share and per share data
Jan. 31, Jan. 31,
1998 1997
Assets
Current assets:
Cash and cash equivalents 166 30
Accounts receivable, net 9,862 7,350
Receivables from affiliates 143 362
Inventories 43,030 33,928
Deferred income taxes 2,031 2,472
Prepaid expenses and other current assets 1,079 1,131
Total current assets 56,311 45,273
Non-current assets:
Receivables from affiliates 642 696
Property, plant and equipment, net 21,038 18,348
Goodwill, net 1,507 1,476
Deferred income taxes 1,194 871
Other non-current assets 1,382 1,306
Total assets 82,074 67,970
Liabilities and Shareholders' Equity
Current liabilities:
Bank overdraft - 1,826
Accounts payable and accrued liabilities 16,648 13,693
Payables to related parties - 1,231
Payables to affiliates - -
Current maturities of long-term debt 198 2,964
Current portion of obligations
under capital leases 1,729 1,395
Income taxes payable 819 1,612
Total current liabilities 19,394 22,721
Non-current liabilities:
Long-term debt 14,716 20,718
Convertible notes - 10,042
Obligations under capital
leases, excluding current portion 3,405 3,516
Other long-term liabilities 632 808
Total liabilities 38,147 57,805
Total shareholders' equity 43,927 10,165
Total liabilities and
shareholders' equity 82,074 67,970
-0-
The following are Barbeques Galore Ltd.'s unaudited pro forma
results for the year ended Jan. 31, 1998, compared with the year ended
Jan. 31, 1997:
Year ended Year ended
Jan. 31, 1998 Jan. 31, 1997
(in thousands except per share data)
A$ US$ A$ US$
Sales
Australia 117,613 86,093 108,003 85,268
United States 61,712 45,173 40,366 31,869
Total sales 179,325 131,266 148,369 117,137
Cost of goods sold 122,072 89,357 103,324 81,574
Gross profit 57,253 41,909 45,045 35,563
Selling, general and
administration expenses 48,992 35,862 40,751 32,173
Store pre opening costs 435 318 239 189
Relocation and
closure costs 20 15 0 0
Other operating income 3 2 0 0
Operating income 7,809 5,716 4,055 3,201
Equity in income
of affiliates 552 404 213 168
Interest expense 1,596 1,168 1,705 1,346
Other expense/(income) 5 4 0 0
Income before tax 6,760 4,948 2,563 2,023
Income tax expense 2,116 1,549 200 158
Net income 4,644 3,399 2,363 1,865
Net income per share 1.00 0.73 0.51 0.40
Weighted average shares
outstanding 4,635 4,635 4,635 4,635
US$/A$ conversion rate 0.7320 0.7895
Note: The pro forma results for the year ended Jan. 31, 1997, exclude
relocation and closure costs of A$1.336 million and other
non-recurring expenses of A$1.132 million.
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The following are Barbeques Galore Ltd.'s unaudited pro forma
results for the fourth quarter ended Jan. 31, 1998, compared with the
fourth quarter ended Jan. 31, 1997:
Fourth Quarter ended Fourth Quarter ended
Jan. 31, 1998 Jan. 31, 1997
(in thousands except per share data)
A$ US$ A$ US$
Sales
Australia 49,560 33,265 44,294 35,028
United States 15,832 10,626 9,200 7,275
Total sales 65,392 43,891 53,494 42,303
Cost of goods sold 43,836 29,423 35,989 28,460
Gross profit 21,556 14,468 17,505 13,843
Selling, general and
administration expenses 14,874 9,983 12,351 9,767
Store pre opening costs 189 127 96 76
Relocation and closure costs 20 13 0 0
Other operating income 0 0 0 0
Operating income 6,473 4,345 5,058 4,000
Equity in income of affiliates 210 141 109 86
Interest expense 444 298 553 437
Other expense/(income) 5 3 0 0
Income before tax 6,234 4,185 4,614 3,649
Income tax expense 2,003 1,344 1,407 1,113
Net income 4,231 2,841 3,207 2,536
Basic earnings per share 0.91 0.61 0.69 0.55
Weighted average shares
outstanding 4,635 4,635 4,635 4,635
US$/A$ conversion rate 0.6712 0.7908
Note: The pro forma results for the fourth quarter ended Jan. 31,
1997, exclude relocation and closure costs of A$0.461 million and
other non-recurring expenses of A$1.096 million. |
