IRVINE, Calif.--(BUSINESS WIRE)--May 28, 1998--Barbeques Galore Ltd.
(NASDAQ:BBQZY - news), the world's largest chain of barbecue stores, today reported financial
results for its first quarter ended April 30, 1998.
Net sales for the quarter were A$36.7 million (Australian), a 21.0% increase over net sales of
A$30.4 million in the corresponding period last year. Sales in the U.S. increased 28.6% to
US$11.3 million, equivalent to A$17.0 million, while Australian sales were up 3.6% to A$19.8
million.
Comparable store sales increased 7.7% at the company's U.S. locations and 6.6% at its Australian
locations. Gross margin for the quarter expanded to 31.6% of total sales from 31.2% in the
year-ago period, primarily due to sales mix. Selling, general and administrative expenses, excluding
store pre-opening expenses, were 33.9% of total sales compared to 32.3% in the first quarter last
year.
Operating loss for the seasonally slow first quarter was A$(997,000) versus pro forma operating
loss of A$(437,000) in the same quarter of the prior year. Net loss was A$(787,000), or A$(0.17)
per share, compared to pro forma net loss of A$(315,000), or A$(0.07) per share, in the
corresponding quarter last year. The pro forma results reflect capital structure changes as a result of
the company's initial public offering in November 1997.
''We are very excited about the progress we made and the results we achieved in the first quarter,
which were in line with our expectations for that period,'' said Sam Linz, executive chairman of
Barbeques Galore.
''During the quarter, we opened one new store in the U.S., in Greensboro, North Carolina, as well
as one new store in Queensland, Australia. Subsequent to the end of the quarter, we opened three
new stores in Fairfax and Sterling, Virginia and White Marsh, Maryland, and we continue to take
important steps towards future U.S. store openings in keeping with our store expansion plan.
''The consolidation of our Australian manufacturing facility will be complete by the end of June. We
recently acquired two properties adjacent to our manufacturing facility which will accommodate our
manufacturing, assembly and warehousing needs for the foreseeable future.
''The increase in SG&A expenses as a percent of sales versus last year's first quarter primarily
reflects operating costs from more stores in both the U.S. and Australia during a period when sales
are seasonally the lowest of the year. As we move into the busy summer season in the U.S., we
expect these new stores will contribute to substantial increases in operating margins.''
Barbeques Galore is the leading chain of specialty retail stores devoted to barbecues, fireside
products and related accessories in the United States and Australia. The company owns and
operates 33 stores in Australia and 41 stores in the United States. In addition, there are 7 franchised
stores in the U.S. and 46 licensed stores in Australia.
The press 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 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 Ltd.'s unaudited results for
the first quarter ended April 30, 1998, compared to the pro forma
results for the first quarter ended April 30, 1997.
First Quarter Ended
April 30,
1998 1997
(in thousands except per share data)
A$ US$ A$ US$
Sales
Australia 19,757 13,144 19,078 14,854
U.S. 16,987 11,301 11,288 8,789
Total sales 36,744 24,445 30,366 23,643
Cost of goods sold 25,117 16,710 20,891 16,266
Gross profit 11,627 7,735 9,475 7,377
Selling, general and
administration expenses 12,462 8,291 9,798 7,629
Store pre-opening costs 147 98 114 89
Relocation and closure costs 15 10 0 0
Other operating income 0 0 0 0
Operating income (997) (664) (437) (341)
Equity in income of affiliates 96 64 50 39
Interest expense 388 258 278 216
Other expense/(income) 0 0 0 0
Income before tax (1,289) (858) (665) (518)
Income tax expense (502) (334) (350) (273)
Net income (787) (524) (315) (245)
Basic earnings per share (0.17) (0.12) (0.07) (0.05)
Weighted average shares
outstanding 4,542 4,542 4,542 4,542
US$/A$ conversion rate 0.6653 0.7786
The pro forma results for the first quarter ended April 30, 1997,
exclude interest of A$0.601 million.
Barbeques Galore Ltd.
Condensed Consolidated Balance Sheets
In A$ thousands, except share and per share data
April 30, Jan. 31,
1998 1998
Assets
Current assets:
Cash and cash equivalents 31 166
Accounts receivable, net 7,962 9,862
Receivables from affiliates 250 143
Inventories 47,302 43,030
Deferred income taxes 2,393 2,031
Prepaid expenses and other current assets 1,577 1,079
Total current assets 59,515 56,311
Noncurrent assets:
Receivables from affiliates 480 642
Property, plant and equipment, net 24,967 21,038
Goodwill, net 1,486 1,507
Deferred income taxes 1,405 1,194
Other noncurrent assets 1,462 1,382
Total assets 89,315 82,074
Liabilities and shareholders' equity
Current liabilities:
Bank overdraft 2,610 0
Accounts payable and accrued liabilities 17,835 16,648
Payables to related parties 0 0
Payables to affiliates 0 0
Current maturities of long-term debt 147 198
Current portion of obligations under capital
leases 1,312 1,729
Income taxes payable 457 819
Total current liabilities 22,361 19,394
Noncurrent liabilities:
Long-term debt 18,975 14,716
Convertible notes 0 0
Obligations under capital leases,
excluding current portion 3,388 3,405
Other long-term liabilities 1,016 632
Total liabilities 45,740 38,147
Total shareholders' equity 43,575 43,927
Total liabilities and shareholders' equity 89,315 82,074
Contact:
Barbeques Galore USA
Sydney Selati, 949/597-2400
or
Morgen-Walke Associates Inc.
John Swenson/Elizabeth Snowdon/Doug Sherk, 415/296-7383
(Investor Relations)
Sheryl Seapy/Carol Lehrman, 415/296-7383
(Media Relations)
Karen Amlong, 212/850-5600
(Wire Services)
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It looks like they beat the estimates slightly. Estimate was -0.13 and they came in at -0.12. |
