Business & Finance

Barbeques Galore Reports First Fiscal Quarter Results

Business Wire - June 5th, 2001

(NOTE: Figures listed below are in USD, except where noted)

Barbeques Galore Limited (Nasdaq:BBQZ) today reported its operating results for the first fiscal quarter ended April 30, 2001.

The company reported a net loss for the quarter of $1.8 million, equal to $0.40 per share, compared with a net loss of $815,000, or $0.18 per share, last year. The first quarter typically is the company's weakest period because of the seasonal nature of its business.

Total company sales for the first quarter amounted to $32.4 million, compared with $34.1 million in the prior year. Same store sales were lower in the U.S. by 5.0% and decreased 2.8% in Australia.

Net sales in the U.S. for the three-month period increased 4.7% to $20.9 million from $19.9 million a year earlier. Net sales in Australia totaled $11.5 million, an 18.7% decline from $14.2 million reported last year, and in Australian dollars fell by 3.0% to A$22.4 million from A$23.1 million a year ago.

Gross margin for the quarter decreased to 29.4% of total sales, from 31.4% in the prior year period. Operating loss was $2.1 million compared with a loss of $959,000 in the first quarter a year ago.

"Difficult economic conditions and low consumer confidence in both the U.S. and Australia continued to adversely impact the company's performance. The results also reflect an increased operating base of 65 company stores with a lower leverage available during this traditionally slow quarter," said Sam Linz, Executive Chairman of Barbeques Galore.

The average exchange rate between the Australian dollar and the US dollar for the fiscal quarter ended April 30, 2001 was A$1 = US$0.5135 compared with last year, when A$1 = US$0.6131 representing a 16.2% decline in the Australian dollar.

Recently, the company announced its acquisition of Saxon Wood Heaters, an Australian-based manufacturer of wood heaters and gas-fired barbecues. Linz said Saxon is expected to contribute to earnings immediately. The acquisition adds two well-reputed brand names to Barbeques Galore and expands the company's line of self-manufactured products.

Barbeques Galore is the leading chain of specialty retail stores devoted to sales of barbecues, fireside products and related accessories. The company now owns and operates 65 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, the company sells an extensive line of barbecue and fireside products and related accessories.