Famous Dave's of America, Inc. Reports Fourth Quarter and Full Year Fiscal 2012 Results

Famous Dave's of America, Inc. Reports Fourth Quarter and Full Year Fiscal
2012 Results

Company Achieved Net Income of $0.57 Per Share; Includes Non-Cash Charges of
$0.04 Per Share

MINNEAPOLIS, Feb. 13, 2013 (GLOBE NEWSWIRE) -- Famous Dave's of America, Inc.
(Nasdaq:DAVE) today reported financial results for its fourth quarter and 2012
fiscal year end.

Highlights for the fourth quarter of 2012 as compared to the fourth quarter of
2011 include:

  *Revenue decreased to $36.3 million from $37.5 million
  *Comparable restaurant sales for Company-owned restaurants open 24 months
    or more decreased 6.0% compared to an increase of 3.6% for the fourth
    quarter of 2011
  *Comparable restaurant sales for franchise-operated restaurants decreased
    4.0%
  *Franchise royalty revenue was $4.0 million for both periods, reflecting
    the opening of a net two new franchise restaurants and a comparable sales
    decrease of 4.0%
  *Net income increased to $750,000 from $414,000
  *Diluted net income per share was $0.10, compared to $0.05 in 2011 which
    primarily reflected the cumulative impact from a favorable tax rate
    adjustment for employment tax credits, for two open tax years, equal to
    approximately $0.04 per diluted share

Highlights for the year ended December 30, 2012 as compared to the year ended
January 1, 2012 include:

  *Revenue increased to $155.0 million from $154.8 million
  *Comparable restaurant sales for Company-owned restaurants open 24 months
    or more decreased 1.8% compared to an increase of 1.5% in 2011
  *Comparable restaurant sales for franchise-operated restaurants decreased
    2.0%
  *Franchise royalty revenue was $17.4 million, an increase from $16.6
    million, reflecting the opening of a net two new franchise restaurants,
    partially offset by the decrease in franchise-operated comparable sales
  *Net income decreased to $4.4 million from $5.6 million
  *Diluted net income per share was $0.57, compared to $0.68, in 2011
  *Diluted net income per share for fiscal 2012 and 2011 reflected $0.04 and
    $0.05 of non-cash charges, respectively. Earnings for December 30, 2012,
    reflected the cumulative impact from a favorable tax rate adjustment for
    employment tax credits, for four open tax years, equal to approximately
    $0.07 per share
  *Diluted adjusted net income per share was $0.61, a decrease from $0.73 for
    2011
  *Adjusted EBITDA was $12.6 million, a decrease from $15.5 million for 2011

John Gilbert, CEO, commented, "Since becoming CEO of Famous Dave's in October,
2012, I have been working closely with the Board and the senior management
team to implement new strategies for delivering reliable and sustainable
revenue and earnings growth. And while our 2012 results fell short of
expectations, I am confident in our ability to accelerate performance in the
future through a more customer-centric organization.

The weak performance in 2012 was a reflection of a continued challenging
economic environment, an increasingly competitive landscape and a difficult
commodity environment. These challenges, coupled with my joining the Company
as its new CEO, created an opportunity for us to review our infrastructure and
practices in order to become more focused on the activities that generate the
best value for our guests and investors.

Over the last quarter we began the process of realigning Dave's core operating
infrastructure and reallocating capital to ensure we are delivering our award
winning BBQ in a way that optimizes the guest experience at each point of
interaction: dine-in, to-go, catering and retail. We further strengthened our
leadership with seasoned management, realigned our organizational structure,
introduced a Digital Services Group to support what we believe will become an
industry-leading social architecture, and established key operating metrics to
help us manage more effectively with individual accountability.

Despite the challenging consumer environment, we are confident that we have
taken the right organizational steps and have made the appropriate investments
to set us up well for the future. And as a result, Famous Dave's is positioned
well for growth.

Yet, we know there is more work to be done, and the real work is in changing
the results - regardless of the consumer environment.

Going forward, we will drive results through smarter pricing decisions,
data-driven promotional tactics, and improved cost management, and we will
drive sensible brand expansion through food excellence, a new restaurant
prototype and prudent capital allocation."

Common Share Repurchases

The company did not repurchase any shares during the fourth quarter of 2012,
as compared to the fourth quarter of fiscal 2011, in which it repurchased
304,036 shares of common stock at an average price of $8.68 per share,
excluding commissions, for approximately $2.6 million. During fiscal 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. As of the end of fiscal 2012, the company had repurchased 323,862
shares under its current 1.0 million share authorization at an average price
of $10.49 per share, excluding commissions, for a total of approximately $3.4
million. The company repurchased 610,166 shares of common stock during fiscal
2011 at an average price of $9.42 per share, excluding commissions, for a
total of approximately $5.8 million.

Credit Facility Covenant Compliance

The company was in compliance with its adjusted leverage ratio and cash flow
covenants associated with its credit facility at the end of the fourth quarter
of 2012. However, as a result of working collaboratively with a franchise
partner on a payment plan on amounts owed, we were not in compliance with the
royalty covenant at the end of the fourth quarter. The credit facility
requires that the amount of franchise royalties aged past 30 days not exceed
25%, and at the end of the fourth quarter, our aging was at 26%. The company
is currently in discussions with the bank regarding an amendment or a waiver
with regard to this covenant.

Marketing and Development

Starting in mid-February and running through March, the company will be
featuring the return of our popular Sweetwater Catfish, as both an entrée and
an appetizer, which will remain on the menu as a regular menu item after this
special re-introduction.

During the fourth quarter, Famous Dave's opened four new franchise-operated
restaurants in South Coast Metro, California, Overland Park, Kansas, Ft.
Myers, Florida and Casper, Wyoming and one company-owned restaurant as a fast
casual format in Evergreen Park, Illinois. A company-owned restaurant closed
in Lombard, Illinois at the end of its natural lease term, and three
franchise-operated restaurants closed in Lahaina, Hawaii, Abilene, Texas, and
Baxter, Minnesota during the quarter.Famous Dave's ended the quarter with 188
restaurants, including 53 company-owned restaurants and 135 franchise-operated
restaurants, located in 34 states and 1 Canadian Province.Subsequent to year
end, a franchise-operated restaurant in Burnsville, Minnesota closed and is
expected to be relocated in early 2013.

Outlook

"We are uniquely positioned to capitalize on what Famous Dave's has always
been, the category defining leader in BBQ," said Gilbert."Our growth will
come through new locations, new franchise partners, new prototypical designs
and new markets. We plan to open approximately 17 new locations in 2013,
including our first location in Puerto Rico that will allow us to surpass 200
restaurants, and over a half billion in sales, system-wide. Additionally, we
will grow in terms of profitability through sales leverage and through
strategic investments, such as those that will help us optimize our menu
through defined pricing strategies.We see an unprecedented amount of
opportunity for 2013 and for the long term, and believe that the strategy that
we have put in place and the investments we have made will soon translate into
a stronger brand."

Conference Call

The company will host a conference call tomorrow, February 14, 2013, at 10:00
a.m. Central Time to discuss its fourth quarter and full year 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 134 additional units in 34 states and 1 Canadian Province. Its menu
features award-winning barbequed and grilled meats, an ample selection of
salads, side items and sandwiches, and unique desserts.

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

Use of Non-GAAP Financial Measures

To supplement its financial statements, Famous Dave's of America, Inc. also
provides investors with adjusted net income per share and adjusted EBITDA
which are non-GAAP financial measures. The Company believes that these
non-GAAP measures provide useful information to management and investors
regarding certain financial and business trends relating to its financial
condition and results of operations. Famous Dave's management uses these
non-GAAP measures to compare the Company's performance to that of prior
periods for trend analysis and planning purposes.

Adjusted net income per share consists of net income plus non-cash items, such
as, asset impairment and estimated lease termination and other closing costs
and net loss on disposal of equipment divided by the weighted average number
of shares of common stock outstanding during each period presented. Famous
Dave's of America, Inc. believes adjusted net income per share is useful to an
investor because it is widely used to measure a company's operating
performance.

EBITDA consists of income from operations plus depreciation and amortization.
Adjusted EBITDA consists of EBITDA plus non-cash items, such as, asset
impairment and estimated lease termination and other closing costs and net
loss on disposal of equipment.Famous Dave's uses Adjusted EBITDA as a measure
of operating performance because it assists the Company in comparing
performance on a consistent basis, as it removes from operating results the
impact of non-cash events. The Company believes Adjusted EBITDA is useful to
an investor in evaluating the company's operating performance because it is
widely used to measure a Company's operating performance without the impact of
items such as depreciation and amortization, which can vary depending upon
accounting methods and the book value of assets, and to present a meaningful
measure of corporate performance exclusive of the impact of non-cash events
and the method by which assets were acquired.

These non-GAAP measures should not be considered a substitute for, or superior
to, financial measures calculated in accordance with generally accepted
accounting principles in the United States.These non-GAAP financial measures
exclude significant expenses and income that are required by GAAP to be
recorded in the company's financial statements and are subject to inherent
limitations. Famous Dave's of America, Inc. urges investors to review the
reconciliation of its non-GAAP financial measures to the comparable GAAP
financial measures that are included in this press release.The tables
appearing at the end of this release provide reconciliations of net income to
adjusted net income per share and Adjusted EBITDA.


FAMOUS DAVE'S OF AMERICA, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS
DECEMBER 30, 2012 AND JANUARY 1, 2012
(in thousands, except share and per share data)
(Unaudited)

                              Three Months Ended      Twelve Months Ended
                              December 30, January 1, December 30, January 1,
                              2012         2012       2012         2012
Revenue:                                                         
Restaurant sales, net          $ 31,792     $ 33,336   $ 135,730    $ 136,896
Franchise royalty revenue      3,999        3,967      17,354       16,611
Franchise fee revenue          190          --        730          320
Licensing and other revenue    274          201        1,174        984
Total revenue                  36,255       37,504     154,988      154,811
                                                                
Costs and expenses:                                              
Food and beverage costs        10,012       10,252     42,431       40,829
Labor and benefits costs       10,598       10,780     44,257       43,170
Operating expenses             8,719        9,814      38,364       38,398
Depreciation and amortization  1,552        1,462      6,000        5,616
General and administrative     4,325        3,929      16,849       16,463
expenses
Asset impairment and estimated
leasetermination and other    82           355        370          513
closing costs
Pre-opening expenses           157          130        474          412
Net loss on disposal of        13           4          30           14
property
Total costs and expenses       35,458       36,726     148,775      145,415
                                                                
Income from operations         797          778        6,213        9,396
                                                                
Other expense:                                                   
Interest expense               (257)        (264)      (1,050)      (1,085)
Interest income                2            3          7            22
Other income (expense), net    (12)         8          (5)          (7)
Total other expense            (267)        (253)      (1,048)      (1,070)
                                                                
Income before income taxes     530          525        5,165        8,326
                                                                
Income tax benefit (expense)   220          (111)      (805)        (2,764)
                                                                
Net income                     $ 750        $ 414      $ 4,360      $ 5,562
                                                                
Basic net income per common    $ 0.10       $ 0.05     $ 0.58       $ 0.70
share
                                                                
Diluted net income per common  $ 0.10       $ 0.05     $ 0.57       $ 0.68
share
                                                                
Weighted average common shares 7,338,000    7,766,000  7,455,000    7,972,000
outstanding basic
                                                                
Weighted average common shares 7,547,000    7,866,000  7,650,000    8,149,000
outstanding diluted



FAMOUS DAVE'S OF AMERICA, INC. AND SUBSIDIARIES
OPERATING RESULTS
(unaudited)

^                             Three Months Ended      Twelve Months Ended
^                             December 30, January 1, December 30, January 1,
^                             2012         2012       2012         2012
Food and beverage costs^(1)    31.5%        30.8%      31.3%        29.8%
Labor and benefits^(1)         33.3%        32.3%      32.6%        31.5%
Operating expenses^(1)         27.4%        29.4%      28.3%        28.0%
Depreciation & amortization    4.4%         3.9%       4.0%         3.7%
(restaurant level)^(1)
Depreciation & amortization    0.5%         0.5%       0.4%         0.4%
(corporate level)^(2)
General and administrative^(2) 11.9%        10.5%      10.9%        10.6%
Asset impairment and estimated
lease termination and other    0.3%         1.1%       0.3%         0.4%
closing costs^(1)
Pre-opening expenses and net
loss on disposal of            0.5%         0.4%       0.4%         0.3%
equipment^(1)
^                             ^           ^         ^           ^
Total costs and expenses^(2)   97.8%        97.9%      96.0%        93.9%
Income from operations^(2)     2.2%         2.1%       4.0%         6.1%
                              ^           ^         ^           ^
^(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)

                                                   December 30, January 1,
                                                   2012         2012
ASSETS                                                          
Cash and cash equivalents                           $ 2,074      $ 1,148
Other current assets                                10,761       8,809
Property, equipment and leasehold improvements, net 60,429       60,972
Other assets                                        3,478        3,188
Total assets                                        $ 76,742     $ 74,117
                                                               
LIABILITIES AND SHAREHOLDERS' EQUITY                            
Current liabilities                                 $ 12,117     $ 11,937
Line of credit                                      13,600       11,000
Other long-term obligations                         17,258       17,086
Shareholders' equity                                33,767       34,094
Total liabilities and shareholders' equity          $ 76,742     $ 74,117



FAMOUS DAVE'S OF AMERICA, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(in thousands)
(unaudited)

                                                    Twelve Months Ended
                                                    December 30, January 1,
                                                    2012         2012
                                                                
Cash flows provided by operating activities          $ 9,626      $ 11,852
Cash flows used for investing activities             (5,473)      (5,128)
Cash flows used for financing activities             (3,227)      (8,230)
Net increase (decrease) in cash and cash equivalents $ 926        $ (1,506)



FAMOUS DAVE'S OF AMERICA, INC. AND SUBSIDIARIES
SUPPLEMENTAL SALES INFORMATION
(unaudited)

^                             Three Months Ended      Twelve Months Ended
^                             December 30, January 1, December 30, January 1,
^                             2012         2012       2012         2012
^                             ^           ^         ^           ^
Restaurant sales (in           ^           ^         ^           ^
thousands):
Company-Owned                  $ 31,792     $ 33,336   $ 135,730    $ 136,896
Franchise-Operated             $ 82,614     $ 83,659   $ 361,109    $ 355,338
^                             ^           ^         ^           ^
Total number of restaurants:   ^           ^         ^           ^
Company-Owned                  53           54         53           54
Franchise-Operated             135          133        135          133
Total                          188          187        188          187
^                             ^           ^         ^           ^
Total weighted average weekly  ^           ^         ^           ^
net sales (AWS):
Company-Owned                  $ 46,009     $ 48,319   $ 49,172     $ 50,216
Franchise-Operated             $ 48,100     $ 49,412   $ 52,714     $ 53,096
^                             ^           ^         ^           ^
AWS 2005 and Post 2005:^(1)    ^           ^         ^           ^
Company-Owned                  $ 47,189     $ 51,353   $ 51,429     $ 54,527
Franchise-Operated             $ 50,803     $ 52,302   $ 55,566     $ 56,074
^                             ^           ^         ^           ^
AWS Pre-2005:^(1)              ^           ^         ^           ^
Company-Owned                  $ 45,077     $ 46,278   $ 47,485     $ 47,458
Franchise-Operated             $ 42,365     $ 43,612   $ 46,768     $ 47,238
^                             ^           ^         ^           ^
Operating weeks:               ^           ^         ^           ^
Company-Owned                  691          689        2,754        2,722
Franchise-Operated             1,717        1,693      6,848        6,691
^                             ^           ^         ^           ^
Weighted comparable net sales  ^           ^         ^           ^
by category (24 month):
Dine-in                        (5.5)%       1.3%       (2.1)%       (0.3)%
To-Go                          (1.2)%       1.3%       0.0%         1.1%
Catering                       0.7%         1.0%       0.3%         0.7%
Total Company-Owned comparable (6.0)%       3.6%       (1.8)%       1.5%
sales %
^                             ^           ^         ^           ^
Franchise-Operated comparable  (4.0)%       2.1%       (2.0)%       0.0%
sales %
^                             ^           ^         ^           ^
Total number of comparable     ^           ^         ^           ^
restaurants:
Company-Owned                  50           51         49           44
Franchise-Operated             112          111        107          102
^                             ^           ^         ^           ^
^                                                               
^(1)Provides further delineation of AWS for restaurants opened during the
pre-fiscal 2005, and restaurants opened during the post-fiscal 2005,
timeframes.



FAMOUS DAVE'S OF AMERICA, INC. AND SUBSIDIARIES
NON-GAAP RECONCILIATION
(in thousands)
(unaudited)

                                                      Twelve Months Ended
                                                      December 30, January 1,
                                                      2012         2012
                                                                  
Adjusted net income per share:                                     
Net income                                             $ 4,360      $ 5,562
Asset impairment and estimated lease termination and   370         513
other closing costs
Net loss on disposal of equipment                      30          14
Tax adjustment for non-cash adjustments                (62)        (175)
                                                                  
Adjusted net income                                    $ 4,698      $ 5,914
                                                                  
Adjusted net income per share:                                     
Basic net income per common share                      $ 0.63       $ 0.74
Diluted net income per common share                    $ 0.61       $ 0.73
                                                                  
Shares used to compute adjusted net income per share:              
Weighted average common share outstanding - basic      7,455,000   7,972,000
Weighted average common share outstanding - diluted    7,650,000   8,149,000
                                                                  
Adjusted EBITDA:                                                   
Income from operations                                 $ 6,213      $ 9,396
Depreciation and amortization                          6,000       5,616
                                                                  
EBITDA                                                 12,213      15,012
                                                                  
Non-cash items:                                                    
Asset impairment and estimated lease termination and   370         513
other closing costs
Net loss on disposal of equipment                      30          14
                                                                  
Adjusted EBITDA                                        $ 12,613     $ 15,539

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: Gretchen Anthony - Director of Communication
         952-294-1300

Famous Dave's of America Logo
 
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