Famous Dave's Reports First Quarter Fiscal 2013 Results

Famous Dave's Reports First Quarter Fiscal 2013 Results

MINNEAPOLIS, April 24, 2013 (GLOBE NEWSWIRE) -- Famous Dave's of America, Inc.
(Nasdaq:DAVE) today reported financial results for its first quarter of fiscal
2013.

Highlights for the first quarter of 2013 as compared to the first quarter of
2012 include:

  *Revenue decreased to $36.6 million from $37.5 million;
  *Comparable restaurant sales for Company-owned restaurants open 24 months
    or more decreased by 1.8% compared to a decrease of 1.6% for the first
    quarter of 2012, and reflected the shift in timing of Easter from the
    second quarter 2012 to the first quarter of 2013;
  *Cash flows provided by operations were $3.9 million in the first quarter
    of 2013, compared to cash flows used for operations of $33,000 in the
    first quarter of fiscal 2012;
  *Comparable restaurant sales performance exceeded industry average,
    according to Black Box Intelligence, or BBI, for the first time in 5
    quarters;
  *Comparable restaurant sales for franchise-operated restaurants decreased
    6.1% compared to a decrease of 0.1% for the first quarter of 2012;
  *Franchise royalty revenue decreased to $4.1 million from $4.4 million,
    primarily reflecting the comparable sales decrease, partially offset by
    the net increase of two additional franchise locations since the first
    quarter of 2012;
  *General and administrative expenses increased to $5.0 million for the
    first quarter of 2013 primarily reflecting a $325,000 increase in salary,
    accrued bonus, taxes and stock-based compensation due to the reorganized
    CEO and COO positions, and approximately $135,000 of legal and other costs
    incurred related to board activity;
  *Diluted net income per share was $0.01, compared to $0.11 in 2012, the
    decrease primarily reflecting the comparable sales decrease in franchise
    royalty revenue, decreased franchise fees, the shift in the timing of
    Easter, a shift in the timing of media spend from the second quarter of
    2012 to the first quarter of 2013 and an increase in general and
    administrative expenses;
  *Adjusted EBITDA was approximately $1.9 million, compared to $3.0 million
    for the first quarter of 2012;
  *Long-term debt was reduced, including our line of credit balance, by
    approximately 15% during the first quarter of 2013.

John Gilbert, CEO, commented, "Six months ago when I joined Famous Dave's as
CEO, I stated that we would make same store sales our first priority, and they
remain our top priority. Our first quarter sales, royalties and franchise fee
results were disappointing, which led to poor EBITDA and EPS results.
Company-owned restaurants performed slightly better than the industry,
according to BBI. Over the past six months, we've developed a strategic
framework for performance improvement, tested a number of smart, innovative
tactics that have proven successful, and launched the best of these tactics in
our company restaurants. As the franchisor, we occasionally get ahead of our
franchisees in the testing and launching of new initiatives, and while we
launched these new sales drivers in our corporate restaurants during the
quarter, the bulk of our franchisees did not add these tactics until the
second quarter. This is reflected in the four point sales gap between
company-owned and franchise-operated sales performance.

"As a result of these initiatives, company restaurants have moved from the
bottom quartile, in terms of casual dining industry same store sales, to the
top half of the casual dining category in one quarter, according to BBI.
Additionally, for the third period of the first quarter, Famous Dave's of
America saw positive same store sales numbers, ending eight consecutive
periods of decline. We are encouraged by these signs and expect our franchise
restaurants to catch up in the second quarter as they launch these new
initiatives."

Common Share Repurchases

The company did not buy back any shares during the first quarter of 2013.The
company repurchased 148,000 shares of common stock during the fiscal 2012
first quarter at an average price of $10.97 per share, excluding commissions,
for a total of approximately $1.6 million.

The company has 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.

Marketing and Development

From mid-February through March, the company featured the return of its
popular Sweetwater Catfish, as both an entrée and an appetizer, which will now
be a regular menu item.In April the company launched a new menu featuring
house smoked beef brisket and Burnt Ends.These initiatives had performed very
well in company test markets during March.The upcoming "Summer of Ribs"
promotion will feature our core menu product of St. Louis and Babyback ribs
and the introduction of a St. Louis Ribs sampler platter with a choice of
three styles of ribs with four different sauce options including a new
Backyard Grilling sauce.

Famous Dave's opened no restaurants during the first quarter, and closed a
franchise location in Burnsville, Minnesota.Famous Dave's ended the quarter
with 187 restaurants, including 53 company-owned restaurants and 134
franchise-operated restaurants, located in 34 states and 1 Canadian
Province.Subsequent to quarter end, a franchise-operated restaurant opened in
Carolina, Puerto Rico.

Outlook

"We will not stop our quest to drive sales, and during the second quarter and
beyond, we will continue to introduce new sales-driving initiatives as well as
improve our cost structures in the quarters ahead.Additionally, while we saw
improvement in food costs and effective management of labor during the
quarter, despite a negative industry-wide environment, we will continue to
work towards improving our restaurant level P&L.We have launched a series of
tests and initiatives designed to materially improve food, labor and supply
costs.Our goal is to see the topline improvements drive through a more
efficient P&L to make up for the EBITDA shortfall in the first quarter."

For 2013, we expect to open approximately 12 locations during the year
including two company-owned locations.

Conference Call

The company will host a conference call tomorrow, April 25, 2013, at 10:00
a.m. Central Time to discuss its first 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 135 additional units in 34 states, the Commonwealth of Puerto Rico,
and 1 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.

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
MARCH 31, 2013 AND APRIL 1, 2012
(in thousands, except per share data)
(Unaudited)
                                                                   
                                                          Three Months Ended
                                                          March 31, April 1,
                                                           2013      2012
Revenue:                                                           
Restaurant sales, net                                      $32,280 $32,696
Franchise royalty revenue                                  4,092     4,378
Franchise fee revenue                                      44        170
Licensing and other revenue                                184       249
Total revenue                                              36,600    37,493
                                                                   
Costs and expenses:                                                 
Food and beverage costs                                    9,958     10,161
Labor and benefits costs                                   10,757    10,871
Operating expenses                                         8,982     8,926
Depreciation and amortization                              1,541     1,454
General and administrative expenses                        5,019     4,472
Asset impairment and estimated lease termination and other (12)      92
closing costs
Pre-opening expenses                                       6         18
Net loss on disposal of property                           1         6
Total costs and expenses                                   36,252    36,000
                                                                   
Income from operations                                     348       1,493
                                                                   
Other expense:                                                      
Interest expense                                           (285)     (264)
Interest income                                            4         2
Other income, net                                          18        8
Total other expense                                        (263)     (254)
                                                                   
Income before income taxes                                 85        1,239
                                                                   
Income tax expense                                         (23)      (422)
                                                                   
Net income                                                 $62     $817
                                                                   
Basic net income per common share                          $0.01   $0.11
                                                                   
Diluted net income per common share                        $0.01   $0.11
                                                                   
Weighted average common sharesoutstanding basic           7,370     7,636
                                                                   
Weighted average common shares outstanding diluted         7,648     7,747

                                                                    
                                                                    
FAMOUS DAVE'S OF AMERICA, INC. AND SUBSIDIARIES
OPERATING RESULTS
(unaudited)
                                                                    
                                                           Three Months Ended
                                                           March 31, April 1,
                                                            2013      2012
Food and beverage costs ^ (1)                               30.8%     31.1%
Labor and benefits costs ^ (1)                              33.3%     33.2%
Operating expenses ^ (1)                                    27.8%     27.3%
Depreciation & amortization (restaurant level) ^ (1)        4.3%      4.0%
Depreciation & amortization (corporate level) ^ (2)         0.4%      0.4%
General and administrative expenses ^ (2)                   13.7%     11.9%
Asset impairment and estimated lease termination and other  --       0.3%
closing costs ^ (1)
Pre-opening expenses and net loss on disposal of equipment  --       0.1%
^ (1)
                                                                    
Total costs and expenses ^ (2)                              99.0%     96.0%
Income from operations ^ (2)                                1.0%      4.0%
                                                                    
                                                                    
^(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)
                                                            
                                                   March 31, December 30,
                                                    2013      2012
ASSETS                                                       
Cash and cash equivalents                           $2,006  $2,074
Other current assets                                10,249    10,272
Property, equipment and leasehold improvements, net 59,471    60,429
Other assets                                        3,629     3,478
Total assets                                        $75,355 $76,253
                                                            
LIABILITIES AND SHAREHOLDERS' EQUITY                         
Current liabilities                                 $13,961 $12,117
Line of credit                                      10,500    13,600
Other long-term obligations                         16,887    16,769
Shareholders' equity                                34,007    33,767
Total liabilities and shareholders' equity          $75,355 $76,253

                                                               
                                                               
FAMOUS DAVE'S OF AMERICA, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(in thousands)
(unaudited)
                                                               
                                                      Three Months Ended
                                                      March 31, April 1,
                                                       2013      2012
                                                               
Cash flows provided by (used for) operating activities $3,933  $(33)
Cash flows (used for) provided by investing activities (968)     431
Cash flows (used for) provided by financing activities (3,033)   181
Net (decrease) increase in cash and cash equivalents   $(68)   $579

                                                               
                                                               
SUPPLEMENTAL SALES INFORMATION
(unaudited)
                                                               
                                                Three Months Ended
                                                March 31,       April 1,
                                                 2013            2012
                                                ^              ^
Restaurant sales (in thousands):                                
Company-Owned                                    $32,280       $32,696
Franchise-Operated                               $87,459       $90,428
                                                               
Total number of restaurants:                                    
Company-Owned                                    53              53
Franchise-Operated                               134             132
Total                                            187             185
                                                               
Total weighted average weekly net sales (AWS):                  
Company-Owned                                    $46,850       $46,898
Franchise-Operated                               $51,236       $53,350
                                                               
AWS 2005 and Post 2005:^(1)                                     
Company-Owned                                    $47,486       $49,566
Franchise-Operated                               $53,854       $56,358
                                                               
AWS Pre-2005:^(1)                                               
Company-Owned                                    $46,325       $45,041
Franchise-Operated                               $45,468       $47,204
                                                               
Operating weeks:                                                
Company-Owned                                    689             697
Franchise-Operated                               1,707           1,695
                                                               
Weighted comparable net sales by category (24                   
month):
Dine-in                                          (3.5)%          (1.5)%
To Go                                            1.3%            (0.3)%
Catering                                         0.4%            0.2%
Total company-ownedcomparable sales %           (1.8)%          (1.6)%
                                                               
Franchise-Operated %                             (6.1)%          (0.1)%
                                                               
Total number of comparable restaurants:                         
Company-Owned                                    49              50
Franchise-Operated                               114             112
                                                               
                                                               
^(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.
NON-GAAP RECONCILIATION
(in thousands, except share and per share data)
(unaudited)
                                                                    
                                                           Three Months Ended
                                                           March 31, April 1,
                                                            2013      2012
                                                                    
Net income                                                  $62     $817
Asset impairment and estimated lease termination and other  (12)      92
closing costs
Net loss on disposal of equipment                           1         6
Tax adjustment for the non-cash adjustments                 3         (33)
                                                                    
Adjusted Net Income                                         $54     $882
                                                                    
Non-GAAP income per share:                                           
Basic net income per common share                           $0.01   $0.12
Diluted net income per common share                         $0.01   $0.11
                                                                    
Shares used to compute non-GAAP income per share:                    
Weighted average common share outstanding - basic           7,370     7,636
Weighted average common share outstanding - diluted         7,648     7,747
                                                                    
Income from Operations                                      $348    $1,493
Depreciation and amortization                               1,541     1,454
                                                                    
EBITDA                                                      1,889     2,947
                                                                    
Non-cash items:                                                      
Asset impairment and estimated lease termination and other  (12)      92
closing costs
Net loss on disposal of equipment                           1         6
                                                                    
Adjusted EBIDTA                                             $1,878  $3,045

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

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