Famous Dave's Reports Third Quarter Earnings

Famous Dave's Reports Third Quarter Earnings

MINNEAPOLIS, Oct. 24, 2012 (GLOBE NEWSWIRE) -- Famous Dave's of America, Inc.
(Nasdaq:DAVE) today announced revenue and net income of $39.9 million and
$845,000, respectively, or $0.11 per diluted share, for the third quarter
ended September 30, 2012. This compares to revenue and net income of $38.9
million and $1.6 million, respectively, or $0.19 per diluted share, for the
comparable period in 2011.

Earnings for the third quarter of 2012 were negatively impacted by the timing
of the spend for media and direct-mail marketing initiatives, that shifted
from the fourth quarter of 2011 to the third quarter of 2012, equating to a
$0.09 per diluted share impact. Additionally, the company realized continued
margin pressure from increased commodity costs and labor and benefit costs.
The decline in third quarter earnings was partially offset by the cumulative
impact from a favorable tax rate adjustment for employment tax credits for the
current year, as well as two years for which we can amend the returns, equal
to approximately $0.07 per diluted share. The favorable impact for the
remaining two open tax years is expected to be realized during the fourth
quarter of 2012.

"I came to Famous Dave's, first as a board member, and now as CEO because I
have a deep belief that this is a high growth restaurant brand waiting to
happen," said John Gilbert, Famous Dave's newly appointed chief executive
officer. "If you are a student of the American restaurant consumer, as I have
been for over 30 years, you know that food excellence is being rewarded in the
marketplace today, and we have 646 trophies to prove that we know how to do
food. My job is to turn this excellence into brand growth. Our third quarter
results were disappointing, despite a higher revenue base, and clearly we have
work to do, but I believe there are opportunities to uniquely position Famous
Dave's as the clear category leader within a differentiated BBQ space. Through
a combination of award-winning food, and a differentiated guest experience, we
are going to grow this brand – in guest counts, unit counts, sales and
profits, and we will deliver the value to our shareholders that they not only
expect, but that they deserve."

Same store sales for company-owned restaurants open for 24 months or more
increased 0.2 percent, compared to a decrease of 0.1 percent for the prior
year comparable period. Comparable sales included a weighted average price
increase of approximately 2.2 percent, and reflect an increase in to-go sales,
partially offset by declines in catering sales and dine-in guest traffic.
Comparable sales for company-owned restaurants decreased 0.6% during the first
nine months of 2012, compared to an increase of 0.8% for the comparable
timeframe of 2011.

Franchise royalty revenue for the third quarter of 2012 totaled $4.4 million,
compared to $4.2 million for the comparable period in 2011. The increase
reflects the opening of nine new franchise-operated restaurants since the
third quarter of 2011, partially offset by the closure of six
franchise-operated restaurants during this timeframe, in addition to a 2.8%
decrease in franchise comparable sales.Franchise royalty revenue for the
first nine months of 2012 totaled $13.4 million, compared to $12.6 million in
2011, reflecting the nine new openings since the third quarter of 2011,
partially offset by a comparable sales decline of 1.5%.

For the first nine months of 2012, the Company had revenue and net income of
$118.7 million and $3.6 million, respectively, or $0.47 per diluted
share.This compares to revenue and net income of $117.3 million and $5.1
million, respectively, or $0.63 per diluted share for the comparable period in
2011.In addition to the items noted above, year to date results for 2012
included total closure costs of $288,000, or approximately $0.03 per diluted
share, related to closure events from earlier in 2012.Additionally, the
Company had pre-opening expenses of $317,000, or approximately $0.03 per
diluted share, related to a company-owned restaurant opened in the second
quarter and another that will be opened in the fourth quarter.Year to date
results for 2011 included non-cash impairment charges of $158,000 or $0.01 per
diluted share and $282,000 of pre-opening expenses or $0.02 per diluted share.

Common Share Repurchases

The company did not buy back any shares during the third quarter of 2012.The
company repurchased 46,620 shares of common stock during the fiscal 2011 third
quarter at an average price of $9.55 per share, excluding commissions, for a
total of approximately $446,000.For the nine months ended September 30, 2012,
the company used approximately $5.9 million to repurchase 539,596 shares at an
average price of $10.68, excluding commissions, under its current share
repurchase program and the recently completed previous share repurchase
program.During the nine months of 2011, the company used approximately $3.1
million to repurchase 306,130 shares at an average price of $10.15, excluding
commissions.

Marketing and Development

Marketing and development highlights during the quarter included a limited
time offer of Beer Can Chicken, charcoal-smoked and brushed with our own BBQ
beer sauce.This was offered as a platter and a chicken salad sandwich.The
fourth quarter will again feature a direct mail and in-store bounce-back
promotion aimed at providing excellent customer value and driving incremental
sales. 

Famous Dave's opened three new franchise-operated restaurants during the third
quarter, including its first international full-service restaurant in
Winnipeg, Manitoba Canada, and full-service restaurants in Noblesville,
Indiana, and Temecula, California.There were also franchise closures in New
York, New York, Mankato, Minnesota, and Springfield, Massachusetts.Famous
Dave's ended the quarter with 187 restaurants, including 53 company-owned
restaurants and 134 franchise-operated restaurants, located in 34
states.Subsequent to quarter end, there was one additional franchise closure
in Lahaina, Hawaii.

"I couldn't be more excited for this opportunity at this juncture, and believe
that I'm uniquely qualified to take Famous Dave's to the next level," Gilbert
said. "Our top priorities in this environment are growth, both domestically
and internationally, improving our business model and positioning the brand to
be able to more effectively capitalize on its key attributes.My goal is to
leverage, and ensure we get credit for, all the things that make Famous Dave's
unique, including the hand-crafted, scratch-made, slow-smoked, attention to
detail that has earned those 646 awards."

Outlook

We expect to open up to six more locations during the fourth quarter including
one company-owned counter-service location in Evergreen Park, Illinois in
mid-November for a total of 13 new restaurant openings for 2012.For 2013, we
expect to open a total of approximately 15 new restaurants, including a new
franchise-operated restaurant in Carolina, Puerto Rico as well as two
company-owned restaurants.

Conference Call

The company will host a conference call tomorrow, October 25, 2012, at 10:00
a.m. Central Time to discuss its third quarter financial results. There will
be a live webcast of the discussion through the Investor Relations section of
Famous Dave's web site at www.famousdaves.com.

About Famous Dave's

Famous Dave's of America, Inc. develops, owns, operates and franchises
barbeque restaurants. As of today, the company owns 53 locations and
franchises 133 additional units in 33 states and one Canadian province. Its
menu features award-winning barbequed and grilled meats, an ample selection of
salads, side items and sandwiches, and unique made-from-scratch desserts.

The Famous Dave's of America, Inc. logo is available at
http://www.globenewswire.com/newsroom/prs/?pkgid=7726

                                                                
                                                                
FAMOUS DAVE'S OF AMERICA, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS
SEPTEMBER 30, 2012 AND OCTOBER 2, 2011
(in thousands, except share and per share data)
(Unaudited)
                                                                
                            Three Months Ended       Nine Months Ended
                            September 30, October 2, September 30, October 2,
                             2012          2011       2012          2011
Revenue:                                                         
Restaurant sales, net        $34,896     $34,315  $103,938    $103,560
Franchise royalty revenue    4,352         4,234      13,355        12,644
Franchise fee revenue        295           150        540           320
Licensing and other revenue  378           228        900           783
Total revenue                39,921        38,927     118,733       117,307
                                                                
Costs and expenses:                                              
Food and beverage costs      11,007        10,292     32,419        30,577
Labor and benefits costs     11,456        10,829     33,659        32,390
Operating expenses           10,794        9,536      29,645        28,584
Depreciation and             1,520         1,404      4,448         4,154
amortization
General and administrative   4,370         4,012      12,524        12,534
expenses
Asset impairment and
estimated lease termination  13            (28)       288           158
and other closing costs
Pre-opening expenses         19            237        317           282
Net loss on disposal of      3             3          17            10
property
Total costs and expenses     39,182        36,285     113,317       108,689
                                                                
Income from operations       739           2,642      5,416         8,618
                                                                
Other expense:                                                   
Interest expense             (282)         (261)      (793)         (821)
Interest income              2             6          5             19
Other (expense) income, net  (13)          (15)       7             (15)
Total other expense          (293)         (270)      (781)         (817)
                                                                
Income before income taxes   446           2,372      4,635         7,801
Income tax benefit (expense) 399           (807)      (1025)        (2653)
                                                                
Net income                   $845        $1,565   $3,610      $5,148
Basic net income per common  $0.12       $0.20    $0.48       $0.64
share
Diluted net income per       $0.11       $0.19    $0.47       $0.63
common share
                                                                
Weighted average common      7,327,000     7,994,000  7,494,000     8,041,000
shares outstanding basic
                                                                
Weighted average common      7,478,000     8,173,000  7,659,000     8,219,000
shares outstanding diluted
                                                                
See accompanying notes to consolidated financial statements.

                                                                
                                                                
FAMOUS DAVE'S OF AMERICA, INC. AND SUBSIDIARIES
OPERATING RESULTS
(unaudited)
                                                                
^                           Three Months Ended       Nine Months Ended
^                           September 30, October 2, September 30, October 2,
                             2012          2011       2012          2011
Food and beverage costs ^(1) 31.5%         30.0%      31.2%         29.5%
Labor and benefits costs     32.8%         31.6%      32.4%         31.3%
^(1)
Operating expenses ^ (1)     30.9%         27.8%      28.5%         27.6%
Depreciation & amortization  3.9%          3.6%       3.8%          3.6%
(restaurant level) ^(1)
Depreciation & amortization  0.4%          0.4%       0.4%          0.4%
(corporate level) ^(2)
General and administrative   10.9%         10.3%      10.5%         10.7%
expenses ^ (2)
Asset impairment and
estimated lease termination  ---           (0.1)%     0.3%          0.2%
and other closing costs ^(1)
Pre-opening expenses and net
loss on disposal of          0.1%          0.7%       0.3%          0.3%
equipment ^(1)
^                                                               
Total costs and expenses ^   98.1%         93.2%      95.4%         92.7%
(2)
Income from operations ^(2)  1.9%          6.8%       4.6%          7.3%
^                                                               
^                                                               
^(1) As a percentage of restaurant sales, net
^(2) As a percentage of total revenue

                                                                
                                                                
FAMOUS DAVE'S OF AMERICA, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
(in thousands)
(unaudited)
                                                                
                                                                
                                                   September 30, January 1,
                                                    2012          2012
ASSETS                                                           
Cash and cash equivalents                           $2,004      $1,148
Other current assets                                10,821        8,809
Property, equipment and leasehold improvements, net 59,616        60,972
Other assets                                        3,116         3,188
Total assets                                        $75,557     $74,117
                                                                
LIABILITIES AND SHAREHOLDERS' EQUITY                             
Current liabilities                                 $11,037     $11,937
Line of credit                                      14,400        11,000
Other long-term obligations                         17,281        17,086
Shareholders' equity                                32,839        34,094
Total liabilities and shareholders' equity          $75,557     $74,117

                                                                 
                                                                 
FAMOUS DAVE'S OF AMERICA, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(in thousands)
(unaudited)
                                                                 
                                                    Nine Months Ended
                                                    September 30, October 2,
                                                     2012          2011
Cash flows provided by operating activities          $ 6,921       $ 8,476
Cash flows used for investing activities             (3,060)       (3,044)
Cash flows used for financing activities             (3,005)       (6,417)
Net increase (decrease) in cash and cash equivalents $ 856         $ (985)

                                                               
                                                               
SUPPLEMENTAL SALES INFORMATION
(unaudited)
                                                               
^                         Three Months Ended        Nine Months Ended
^                         September 30, October 2,  September 30, October 2,
                           2012          2011        2012          2011
Restaurant sales (in                                            
thousands):
Company-Owned              $34,896     $34,315   $103,938    $103,560
Franchise-Operated         $91,126     $90,714   $278,496    $271,679
^                                                              
Total number of                                                 
restaurants:
Company-Owned              53            53          53            53
Franchise-Operated         134           131         134           131
Total                      187           184         187           184
^                                                              
Total weighted average                                          
weekly net sales (AWS):
Company-Owned              $50,554     $50,199   $50,231     $50,859
Franchise-Operated         $53,016     $53,772   $54,258     $54,344
^                                                              
AWS 2005 and Post                                               
2005:^(1)
Company-Owned              $53,200     $54,806   $52,910     $55,647
Franchise-Operated         $55,656     $56,446   $57,173     $57,364
^                                                              
AWS Pre-2005:^(1)                                               
Company-Owned              $48,519     $47,264   $48,266     $47,848
Franchise-Operated         $47,549     $48,562   $48,218     $48,445
                                                               
Operating weeks:                                                
Company-Owned              688           681         2,063         2,033
Franchise-Operated         1,717         1,687       5,131         4,998
^                                                              
Comparable net sales (24                                        
month):
Company-Owned %            0.2%          (0.1)%      (0.6)%        0.8%
Franchise-Operated %       (2.8)%        (1.0)%      (1.5)%        (0.7)%
                                                               
Total number of comparable                                      
restaurants:
Company-Owned              49            51          49            44
Franchise-Operated         112           109         109           102
^                                                              
^                                                              
^(1)Provides further delineation of AWS for restaurants opened during the
pre-fiscal 2005, and restaurants opened during the post-fiscal 2005,
timeframes.

Statements in this press release that are not strictly historical, including
but not limited to statements regarding the timing of our restaurant openings
and the timing or success of our expansion plans, are forward-looking
statements within the meaning of the Private Securities Litigation Reform Act
of 1995.These forward-looking statements involve known and unknown risks,
which may cause the company's actual results to differ materially from
expected results.Although Famous Dave's of America, Inc. believes the
expectations reflected in any forward-looking statements are based on
reasonable assumptions, it can give no assurance that its expectation will be
attained.Factors that could cause actual results to differ materially from
Famous Dave's expectation include financial performance, restaurant industry
conditions, execution of restaurant development and construction programs,
franchisee performance, changes in local or national economic conditions,
availability of financing, governmental approvals and other risks detailed
from time to time in the company's SEC reports.

CONTACT: Diana G. Purcel - Chief Financial Officer
         952-294-1300

Famous Dave's of America Logo
 
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