| Barbeques Galore Limited | |||
| Ticker: | BBQZY | 327 Chisholm Road | |
| Exchange: | NASDAQ-National Market | Sydney, AUSTR NSW 2144 | |
| Industry: | Retail (SIC Code 5722) | ||
| # of Employees: | 825 | ||
| Type of Shares: | American Depositary Receipts | Filing Date: | 10/6/97 | |
| U.S. Shares: | 1,700,000 | Offer Date: | 11/7/97 | |
| Non-U.S. Shares: | 0 | Filing Range: | $14.00 - $16.00 | |
| Primary Shares: | 1,700,000 | Offer Price: | $11.00 | |
| Secondary Shares: | 0 | Gross Spread: | $0.77 | |
| Offering Amount: | $25,500,000 | Selling: | $0.47 | |
| Expenses: | $1,100,000 | Reallowance: | $0.10 | |
| Shares Out After: | 4,941,652 |
| Manager | Tier | Phone |
| J.P. Morgan Securities Inc. | Lead Manager | (212) 648-0517 |
| SBC Warburg Dillon Read, Inc. | Co-manager |
| Issuer's Law Firm: | Brobeck, Phleger & Harrison |
| Bank's Law Firm: | Davis, Polk & Wardwell |
| Auditor: | KPMG Peat Marwick |
Dollar amounts in U.S. millions except for per share data | |||||
| 6 Month Ending Financials | |||||
| Full Year Audited Income | Latest Unaudited Income | Prior Unaudited Income | Balance Sheet | ||
| 1/31/97 | 7/31/97 | 1/31/97 | |||
| Revenue: | $117.14 | $53.61 | Assets: | $58.90 | |
| Net Income: | $0.44 | -$0.68 | Curr Assets: | ||
| EPS: | $0.10 | -$0.34 | Liabilities: | $52.20 | |
| Prior EPS: | Curr Liabilities: | ||||
| Cash Flow/Oper: | Equity: | $6.70 | |||
| Cash Flow/Fin: | Cash: | ||||
| Cash Flow/Inv: | Working Cap: | $16.13 | |||
| Business Description |
| The company is a leading specialty retail chain of barbecue and barbecue accessory stores in Australia and the U.S. The stores carry a wide assortment of barbecues and related accessories that emphasize social activities and healthy outdoor lifestyles. The Company's stores also carry a comprehensive line of fireplace products and, in Australia, home heating products, camping equipment and outdoor furniture. As of July 31, 1997, the Company owned and operated 32 stores in all six states in Australia and 32 stores (including three U.S. Navy concession stores) in six states in the United States. In addition, as of such date, there were 45 licensed stores in Australia and six franchised stores in the United States, all of which operate under the "Barbeques Galore" name. The Company's unique retailing concept differentiates Barbeques Galore from its competitors by (i) offering an extensive selection of barbecues and related accessories to suit all consumer lifestyles, preferences and price points, (ii) showcasing these products at convenient store locations in an exciting shopping environment that promotes the total barbecuing experience and (iii) providing exceptional customer service through well-trained sales associates who have in-depth knowledge of the products and understanding of customer needs. |
| Competition |
| The retail and distribution markets for barbecues and the Company's other product offerings are highly competitive in both the United States and Austra- lia. The Company's retail operations compete against a wide variety of retail- ers, including mass merchandisers, discount or outlet stores, department stores, hardware stores, home improvement centers, specialty patio, fireplace or cooking stores, warehouse clubs and mail order companies. The Company's manufacturing and wholesale operations compete with many other manufacturers and distributors throughout the world, including high-volume manufacturers of barbecues and home heaters. Barbeques Galore competes for retail customers primarily based on its broad assortment of competitively priced, quality products (including proprietary and exclusive products), convenience, customer service and the attractive presentation of merchandise within its stores. Many of the Company's competitors have greater financial, marketing, distribution and other resources than the Company, and particularly in the United States, may have greater name recognition than the Company. Furthermore, the lack of significant barriers to entry into the Company's segment of the retail industry may also result in new competition in the future. |
| Business Plan |
| The Company is implementing the following growth strategy to further capitalize on its business strengths: (I) U.S. New Store Expansion and (ii) Refurbishment of Existing Australian Stores. |
| Use of Proceeds |
| The proceeds from the proposed offering will be used to repay outstanding debt and for capital expenditures related to the expansion and refurbishment of the company's operations working capital and other general corporate purposes. |
| Name of Shareholder | % Owned Before | % Owned After |
| Sam Linz | 42.50% | 26.20% |
| Robert Gavshon | 7.30% | 4.50% |
| Geblon Pty Limited | 5.50% | 3.40% |
| Wispjune Pty Limited | 5.30% | 3.30% |
| Officer Name | Title | Age |
| Sam Linz | Chairman of the Board | 57 |
| David James | Chief Financial Officer--Galore USA | 37 |
| L.D. "Chip" Brown | Chief Operating Officer--Galore USA | 36 |
| David Glaser | Company Secretary | 48 |
| Robert Gavshon | Deputy Chairman of the Board and General Counsel | 50 |
| Gary Whitehouse | General Manager of Logistics | 47 |
| Ian Redmile | General Manager--Pricotech Leisure Brands Pty Limited | 45 |
| John Price | Head of Research and Product Development and Director | 47 |
| William Lyons | Managing Director of Manufacturing--Park-Tec Engineering Pty Limited and Australian Enamellers Pty Limited | 55 |
| Sydney Selati | President--Galore USA and Director | 58 |
| Austin Yeh | Vice President and Director of Operations | 51 |
| Michael Varley | Vice President of Purchasing, Distribution and Product Development | 49 |