today released the following report to the Bermuda Stock Exchange (BSX):
Net income for the year ended 31st January 2002 amounted to $290,469 compared with $305,086 in the year ended 31st January 2001. Sales in the year ended 31st January 2002 were $257,456 or 7.2% higher than in the previous year. However, the tragic events of September 11, 2001 affected our sales significantly, as consumer confidence weakened and tourist activity declined. Sales for the period to 31st August 2001 were up by 15.4% against those of the same period in the prior year. But for the period from September to the end of the financial year, sales were down by 3.1% compared to the same period in the prior year. The continued changes in our mix of product sales accompanied by modest increases in prices resulted in our gross margin increasing marginally to 73.8% from 73% in the prior period. In regard to operating expenses however, our biggest challenge continues to be salary and wage costs, which increased in the year by $161,296 to $1,213,754.
On 28th February 2001 we paid a dividend of $0.10 per share to shareholders of record 15th February 2001. Another dividend of $0.20 per share was paid on 1st August 2001 to shareholders of record 29th June 2001, and this included a special dividend of $0.10 per share that was paid in recognition of the Company's results at the time. A further dividend of $0.10 per share was paid on 15th April 2002 to shareholders of record 5th April 2002. During the year, the Company repurchased a net of 16,931 of its own shares, at an average price of $5 reducing shares outstanding to 598,000. It is our intention to continue to reduce the total shares outstanding, assuming the price at which shares are offered are acceptable to us.
During the year, we replaced a significant portion of kitchen equipment at a total cost of $157,363. We have also upgraded the office facilities and the alarm system at a total cost of $64,202. Additional capital expenditure is anticipated in the creation of a staff training room in the space formerly occupied by our office staff.
On behalf of the Board I would like to pay tribute to all our staff for their contribution to our earnings. In particular, I would like to thank Tracy Robinson, Doug Chase and Kevin Manuel for the results, which are a reflection of day-to-day management, staff training and sales success. I would also like to express our appreciation to Graham Redford (our marketing consultant) for his advice and assistance.
Kevin Manuel, the General Manager, has announced that he wishes to leave the Company at the end of June and Doug Chase, the Operations Manager, has also indicated it is his intention to leave the Company to return to the US later this summer. We wish them all the best in their future endeavours and thank both of them for their efforts on behalf of the Company.
We are pleased that we have been able to recruit Mr. Frank Suess, as our new General Manager, starting 1st June. Mr. Suess, the spouse of a Bermudian, is a Master Chef with extensive management experience both in Bermuda and internationally. We are pleased to welcome Mr. Eugene Bell, a Bermudian, who joined us on 15th April as Operating Manager-Designate. Mr. Bell gained considerable experience in the fast food business while resident in the United States and he will understudy Doug Chase until Doug's departure later this summer.
We look forward to the 2003 fiscal year with continued optimism and hope that the steps we continue to take to improve our competitive position and to generate increased sales and profits will be successful. We also hope to see renewed consumer confidence and increased economic activity in Bermuda that we hope to translate into an increase in profits in the 2003 fiscal year.
In closing, I wish to thank my fellow Executive Directors, Crayton Greene, Susan Wilson and Bill Thomson for their contribution, knowledge and assistance during the past year.
Chairman