33% Increase in sales over the previous quarter.
At less than $5 doesn't this look like a buy?
Barbeques Galore Reports Record Financial Results for Second Quarter
Business Wire - September 02, 1998 16:16
IRVINE, Calif.--(BUSINESS WIRE)--Sept. 2, 1998--Barbeques Galore Limited (Nasdaq:BBQZY) today reported financial results for its second quarter ended July 31, 1998.
Net sales for the quarter were A$54.4 million (Australian), a 36.0% increase over net sales of A$40.0 million in the corresponding period last year. Sales in the U.S. increased 33.1% to US$21.4 million, equivalent to A$34.7 million, from US$16.0 million (A$21.3 million) in the prior year period.
Australian sales were A$19.7 million, a 5.1% increase over Australian sales of A$18.8 million in last year's second quarter. Comparable store sales increased 12.7% at the Company's U.S. locations and 1.6% at its Australian locations. Gross margin for the quarter expanded to 33.0% of total sales from 31.2% in the year-ago period, due primarily to reduced cost of goods purchased from Australia as a result of the weak Australian dollar.
Selling, general and administrative expenses, excluding store pre-opening expenses, were 28.1% of total sales compared to 29.8% in the second quarter last year, reflecting increased leverage off a higher sales base.
Operating income for the second quarter was A$2,386,000, a significant increase over pro forma operating income of A$474,000 in the same quarter of the prior year.
Net income grew substantially to A$1,276,000, or A$0.28 per share, compared to pro forma net income of A$160,000, or A$0.04 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.
"Our record financial results in the second quarter were driven by strong comparable store sales gains in the U.S. and reduced costs of goods, as well as substantial revenue contributions from new stores opened in the U.S. during the past year," said Sam Linz, executive chairman of Barbeques Galore.
"During the quarter, we opened four new stores in Fairfax and Sterling, Virginia, White Marsh, Maryland and Roseville, California, and we closed our Rancho Cordova, California location. We currently are working on an additional 26 locations, of which one is expected to open in the third quarter and eight are scheduled to open in the fourth quarter of this year.
"If some of these locations are only ready to open toward the end of this fiscal year, it could be financially unfavorable to do so, in which case we have the option to delay these openings into the first quarter of the next fiscal year.
"The economic turmoil in Asia and Russia has significantly devalued the Australian dollar and negatively affected consumer confidence in Australia. This could impact our financial results in the third and fourth quarters of this year, which are seasonally stronger in Australia.
"We believe that this situation reinforces the importance of our expansion strategy in the U.S., which reduces our dependence on the economic health of a single market and enables us to counter-balance seasonality."
For the six months ended July 31, 1998, net sales were A$91.1 million, a 29.5% increase over net sales of A$70.4 million in the corresponding period last year. Net sales in the U.S. for the six months increased 31.8% to US$32.7 million, equivalent to A$51.7 million, while U.S. same-store sales increased 11.7% on a year to year basis.
Net sales in Australia were A$39.5 million, a 4.3% increase over the same period in 1997, and same-store sales in Australia were up 3.9% versus one year ago. Operating income for the six months ended July 31, 1998 grew substantially to A$1,389,000 compared to A$37,000 in the first half of the last fiscal year.
Net income for the first six months of this fiscal year was A$489,000, or A$0.11 per share, versus a net loss of A$(155,000), or A$(0.03) per share, in the same period a year ago.
Barbeques Galore is the leading chain of specialty retail stores devoted to barbecues, fireside products and related accessories in the United States and Australia. As of July 31, 1998, the Company owned and operated 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. |
