Famous Dave's Reports Results for Third Quarter Fiscal 2013

Famous Dave's Reports Results for Third Quarter Fiscal 2013

                       Income From Operations Grew 65%

        Restaurant Level Cash Flow Margins Increased 630 Basis Points

               Comparable Sales Outperformed the Industry Index

MINNEAPOLIS, Oct. 23, 2013 (GLOBE NEWSWIRE) -- Famous Dave's of America, Inc.
(Nasdaq:DAVE) today reported financial results for the third quarter and nine
months ending September 29, 2013.

Highlights for the third quarter of 2013 as compared to the third quarter of
2012:

  *Revenue decreased to $39.2 million from $39.9 million, reflecting a
    comparable sales decrease and lower franchise fee revenue.
  *Comparable sales for Company-owned restaurants open 24 months or more
    decreased 0.8%, however outperformed the casual dining industry as
    measured by Black Box Intelligence (BBI) by 60 basis points.
  *Franchise royalty revenue of $4.4 million was essentially flat to the
    prior year, primarily reflecting revenue contribution from four net new
    franchise restaurants that opened since the third quarter of 2012,
    partially offset by a comparable sales decrease of 2.3%.
  *Restaurant level cash flow margins increased 630 basis points, reflecting
    year over year improvement in all line items.
  *Net income was $737,000, reflecting significant operational improvements
    offset by a $1.2 million, or $0.12 per diluted share, non-cash restaurant
    asset impairment at a Maryland restaurant and a lease restructuring at a
    Virginia restaurant. It also includes a bonus accrual of approximately
    $435,000, or $0.04 per diluted share. In comparison, net income for the
    third quarter of fiscal 2012 was $845,000 and did not include a bonus
    accrual.
  *Earnings for the third quarter of 2012 were favorably impacted by the
    cumulative impact from a favorable tax rate adjustment for employment tax
    credits equal to approximately $0.07 per diluted share.
  *Diluted net income per share was $0.10 compared to $0.11 in the third
    quarter of 2012.
  *Diluted adjusted net income per share was $0.21 compared to $0.04 in the
    third quarter of 2012.
  *Adjusted EBITDA for the third quarter of 2013 was $3.9 million compared to
    $2.3 million for the same period in 2012.

Highlights for the nine months ended September 29, 2013 as compared to the
nine months ended September 30, 2012:

  *Revenue increased to $119.2 million from $118.7 million.
  *Comparable sales for Company-owned restaurants open 24 months or more
    increased 0.4% compared to a decrease of 0.6% in 2012. Company-owned
    restaurants also performed 100 basis points better than the casual dining
    industry as measured by BBI.
  *Franchise royalty revenue was $13.1 million, compared to $13.4 million,
    reflecting a franchise comparable sales decrease of 3.4% for the
    year-to-date period.
  *Cash flows provided by operations were $11.8 million for the first nine
    months of fiscal 2013, compared to $6.0 million for the first nine months
    of fiscal 2012.
  *Net income decreased to $2.9 million from $3.6 million, reflecting
    improvements in restaurant level operations partially offset by the
    unfavorable impact of the non-cash charges.
  *Net income for the first nine months of fiscal 2013 includes a bonus
    accrual of approximately $1.4 million, or $0.13 per diluted share and
    severance costs as a result of a recent reduction in force of
    approximately $271,000, or $0.02 per diluted share. Net income for the
    first nine months of fiscal 2012 did not include a bonus accrual.
  *Diluted net income per share was $0.38 compared to $0.47, for 2012.
  *Diluted adjusted net income per share was $0.49, compared to $0.43 for the
    first nine months of 2012, reflecting the year-over-year impact from the
    non-cash charges and the favorable tax rate adjustment for employment tax
    credits for 2012.
  *Adjusted EBITDA was approximately $10.6 million, compared to approximately
    $10.2 million for the first nine months of 2012.
  *The Company paid down $7.4 million of debt since the end of fiscal 2012.
  *The Company used approximately $1.2 million to repurchase approximately
    75,000 shares at an average price of $16.13, excluding commissions.

John Gilbert, CEO of Famous Dave's, commented, "I am pleased with our overall
performance despite a particularly challenging operating environment for
restaurants in general. While many of our competitors appear to have had an
equally difficult comparable sales quarter, our solid year to date ranking in
BBI's casual dining category is encouraging."

Mr. Gilbert continued, "Throughout this fiscal year we have continued to take
several important steps toward improving our business fundamentals. Overall,
we have a much more focused, leaner organization executing with urgency on
what matters most: optimizing sales at each point of customer interaction
(dine-in, To Go, catering and retail), improving store-level operating
margins, and extracting unnecessary costs throughout the entire organization.
I firmly believe we are a stronger company today than we were one year ago and
when the macroeconomic headwinds begin to change in our favor, we will be
well-positioned to take advantage of associated growth opportunities."

Marketing and Development

Several initiatives will continue to contribute to improved sales performance.
These include:

  *Continued improvement of the menu, including the introduction of fresh,
    new products and separate lunch and dinner menus designed to improve
    per-customer transaction profitability throughout the day.
  *A more effective, data-driven promotional strategy, resulting in
    incremental sales with better marketing.
  *Improved brand awareness with a new advertising campaign emphasizing
    Famous Dave's best attributes – unmatched BBQ authenticity and expertise.
  *Two great new product tests which we expect to improve our menu selection
    and become customer favorites next year.

Additionally, the company continues to evaluate all aspects of its business,
including ways to improve restaurant economics and restructure underperforming
assets.

Gilbert added, "During the second and third quarter we took decisive action to
address an underperforming restaurant in Salisbury, Maryland and are currently
evaluating the best alternatives for this location. As a result, we were
required to take a non-cash asset impairment charge in the quarter of
approximately $943,000. Though this is a disappointing situation, the
Salisbury market is somewhat isolated from the rest of our trade areas and has
been particularly hard hit during the economic downturn; we don't anticipate
any broader carry-over impact from this decision."

Famous Dave's opened 5 franchise-operated restaurants in Holt, Michigan,
Benson Park, Nebraska, Hayward, California, Independence, Missouri, and Union
Gap, Washington as well as 1 company-owned restaurant in Germantown, Maryland
during the third quarter. We closed 1 franchise-operated location in Overland
Park, Kansas, which represented a relocation of the Independence, Missouri
location. Additionally, the Company closed a company-owned location in
Gaithersburg, Maryland at the end of its lease term, and relocated it to the
new Germantown, Maryland location.Famous Dave's ended the quarter with 191
restaurants, including 53 company-owned restaurants and 138 franchise-operated
restaurants, located in 34 states, the Commonwealth of Puerto Rico, and 1
Canadian province.

We expect to open 1 company-owned restaurant, as well as 2 franchise-operated
restaurants in the fourth quarter, for a total of 10 new restaurants for 2013.

Outlook

Gilbert concluded by saying, "We will continue to improve our consumer
outreach approach by line-of-business in company restaurants and further
uncover what's working well within the system at large, with an aim toward
improving franchisee results along with company-owned restaurants.I remain
confident that our cost reduction measures and strategic initiatives
introduced and tested throughout this year will continue to drive improvement
for our franchisees over the long-term. To ensure these positive results will
endure, we will continue to implement new initiatives aimed at creating a
distinct advantage for us within the marketplace.

  *We will continue to optimize the customer experience within our multiple
    lines of business (dine-in, To Go, catering and retail) with innovative,
    profitable solutions and have added the requisite organizational talent to
    lead these initiatives.
  *We have begun to allocate additional resources to the exciting
    quick-casual segment of our brand and recently appointed a new leader
    responsible for managing this exciting growth initiative.
  *We continue to test new menus, new products, and new designs in an effort
    to accelerate our same store sales momentum.
  *We made decisions during the third quarter regarding G&A reductions, which
    combined with similar efforts in the second quarter, will result in a
    total annualized savings of over $3.0 million.

Conference Call

The company will host a conference call tomorrow, October 24, 2013, 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 138 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
SEPTEMBER 29, 2013 AND SEPTEMBER 30, 2012
(in thousands, except per share data)
(Unaudited)
                                                                
                                 Three Months Ended  Nine Months Ended
                                 September September September 29, September
                                  29,       30,                     30,
                                 2013      2012      2013          2012
Revenue:                                                      
Restaurant sales, net             $34,361 $34,896 $104,973    $103,938
Franchise royalty revenue         4,405     4,352     13,062        13,355
Franchise fee revenue             140       295       259           540
Licensing and other revenue       309       378       884           900
Total revenue                     39,215    39,921    119,178       118,733
                                                                
Costs and expenses:                                              
Food and beverage costs           10,504    11,007    32,010        32,419
Labor and benefits costs          10,960    11,456    33,404        33,659
Operating expenses                8,671     10,327    26,800        28,247
Depreciation and amortization     1,502     1,520     4,579         4,448
General and administrative        4,892     4,837     16,041        13,922
expenses
Asset impairment and estimated
leasetermination and other       1,176     13        1,166         288
closing costs
Pre-opening expenses              293       19        369           317
Net loss on disposal of property  1         3         8             17
Total costs and expenses          37,999    39,182    114,377       113,317
                                                                
Income from operations            1,216     739       4,801         5,416
                                                                
Other expense:                                                   
Interest expense                  (233)     (282)     (771)         (793)
Interest income                   1         2         6             5
Other (expense) income, net       (19)      (13)      (10)          7
Total other expense               (251)     (293)     (775)         (781)
                                                                
Income before income taxes        965       446       4,026         4,635
                                                                
Income tax (expense) benefit      (228)     399       (1,131)       (1,025)
                                                                
Net income                        $737    $845    $2,895      $3,610
                                                                
Basic net income per common share $0.10   $0.12   $0.39       $0.48
                                                                
Diluted net income per common     $0.10   $0.11   $0.38       $0.47
share
                                                                
Weighted average common shares    7,450     7,327     7,419         7,494
outstanding - basic
                                                                
Weighted average common shares    7,721     7,478     7,695         7,659
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 29, September 30, September September
                                                           29,       30,
                              2013          2012          2013      2012
Food and beverage costs ^ (1)  30.6%         31.5%         30.5%     31.2%
Labor and benefits costs ^ (1) 31.9%         32.8%         31.8%     32.4%
Operating expenses ^ (1)(3)   25.2%         29.6%         25.5%     27.2%
                              ^            ^            ^        ^
Restaurant level cash flow     12.3%         6.0%          12.2%     9.2%
margins ^ (1)(5)
                              ^            ^            ^        ^
Depreciation & amortization    3.9%          3.9%          3.9%      3.8%
(restaurant level) ^ (1)
Asset impairment and estimated
lease termination and other    3.4%          0.0%          1.1%      0.3%
closing costs ^ (1)
Pre-opening expenses and net   ^            ^            ^        ^
loss on
disposal of equipment ^ (1)    0.9%          0.1%          0.4%      0.3%
Costs and expenses (restaurant 95.9%         98.0%         93.2%     95.2%
level) ^ (1)
Restaurant level margin ^      4.1%          2.0%          6.8%      4.8%
(1)(4)
                              ^            ^            ^        ^
Depreciation & amortization    0.4%          0.4%          0.4%      0.4%
(corporate level) ^ (2)
General and administrative     12.5%         12.1%         13.5%     11.7%
expenses ^ (2)(3)
                              ^            ^            ^        ^
Total costs and expenses ^ (2) 96.9%         98.1%         96.0%     95.4%
Income from operations ^ (2)   3.1%          1.9%          4.0%      4.6%
                              ^            ^            ^        ^

^(1)As a percentage of restaurant sales, net
^(2) As a percentage of total revenue
^(3) In order to be consistent with what the Company believes to be a more
prevalent practice among other public restaurant companies, the Company has
decided to reflect multi-unit supervision expenses within general and
administrative expenses, rather than as operating expenses, where they
previously have been reflected. For the third quarter of fiscal 2012, this
adjustment was approximately $467,000.For the first nine months of fiscal
2012, this adjustment was approximately $1,398,000.
^(4)Restaurant level margin is equal to taking restaurant sales, net less
restaurant level costs and expenses.Restaurant level costs and expenses
include food and beverage costs, labor and benefit costs, operating expenses,
restaurant level depreciation and amortization, asset impairment and estimated
lease termination and other closing costs, pre-opening expenses and net loss
on disposal of equipment.
^(5)Restaurant level cash flows are equal to taking restaurant sales, net
less restaurant level food and beverage costs, labor and benefit costs, and
operating expenses.

                                                                
FAMOUS DAVE'S OF AMERICA, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
(in thousands)
(unaudited)
                                                                
                                                   September 29, December 30,
                                                   2013          2012
ASSETS                                                           
Cash and cash equivalents                           $1,780      $2,074
Other current assets                                10,581        10,272
Property, equipment and leasehold improvements, net 59,407        60,429
Other assets                                        3,422         3,478
Total assets                                        $75,190     $76,253
                                                                
LIABILITIES AND SHAREHOLDERS' EQUITY                             
Current liabilities                                 $14,651     $12,117
Line of credit                                      6,900         13,600
Other long-term obligations                         17,157        16,769
Shareholders' equity                                36,482        33,767
Total liabilities and shareholders' equity          $75,190     $76,253
                                                                

                                                               
FAMOUS DAVE'S OF AMERICA, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(in thousands)
(unaudited)
                                                               
                                                  Nine Months Ended
                                                  September 29, September 30,
                                                  2013          2012
                                                               
Cash flows provided by operating activities        $11,797     $6,027
Cash flows used forinvesting activities           (3,864)       (3,060)
Cash flows used for financing activities           (8,227)       (2,111)
Net (decrease) increase in cash and cash           $(294)      $856
equivalents
                                                               

                                                                
SUPPLEMENTAL SALES INFORMATION
(unaudited)
                                                                
^                                Three Months Ended  Nine Months Ended
^                                September September September 29, September
                                  29,       30,                     30,
^                                2013      2012      2013          2012
^                                ^        ^        ^            ^
Restaurant sales (in thousands):  ^        ^        ^            ^
Company-Owned                     $34,361 $34,896 $104,973    $103,938
Franchise-Operated                $93,673 $91,126 $277,977    $278,496
^                                ^        ^        ^            ^
Total number of restaurants:      ^        ^        ^            ^
Company-Owned                     53        53        53            53
Franchise-Operated                138       134       138           134
Total                             191       187       191           187
^                                ^        ^        ^            ^
Total weighted average weekly net ^        ^        ^            ^
sales (AWS):
Company-Owned                     $49,788 $50,554 $50,751     $50,231
Franchise-Operated                $53,043 $53,016 $53,519     $54,258
^                                ^        ^        ^            ^
AWS 2005 and Post 2005:^(1)       ^        ^        ^            ^
Company-Owned                     $49,848 $53,200 $51,124     $52,910
Franchise-Operated                $55,506 $55,656 $56,116     $57,173
^                                ^        ^        ^            ^
AWS Pre-2005:^(1)                 ^        ^        ^            ^
Company-Owned                     $49,738 $48,519 $50,441     $48,266
Franchise-Operated                $47,539 $47,549 $47,789     $48,218
^                                ^        ^        ^            ^
Operating weeks:                  ^        ^        ^            ^
Company-Owned                     687       688       2,065         2,063
Franchise-Operated                1,766     1,717     5,194         5,131
^                                ^        ^        ^            ^
Weighted comparable net sales by  ^        ^        ^            ^
category (24 month):
Dine-in                           (2.4)%    (0.6)%    (1.4)%        (1.2)%
To Go                             2.4%      0.9%      2.6%          0.4%
Catering                          (0.8)%    (0.1)%    (0.8)%        0.2%
Total company-owned comparable    (0.8)%    0.2%      0.4%          (0.6)%
sales %
^                                ^        ^        ^            ^
Franchise-Operated %              (2.3)%    (2.8)%    (3.4)%        (1.5)%
^                                ^        ^        ^            ^
Total number of comparable        ^        ^        ^            ^
restaurants:
Company-Owned                     48        49        48            49
Franchise-Operated                117       112       114           109
                                 ^        ^        ^            ^

^(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          Nine Months Ended
                                                             
                      September 29, September 30, September 29, September 30,
                      2013          2012          2013          2012
                                                             
Net income             $737        $845        $2,895      $3,610
Asset impairment and
estimated lease        1,176         13            1,166         288
termination and other
closing costs
Net loss on disposal   1             3             8             17
of equipment
Tax adjustment for the (278)         14            (330)         (67)
non-cash adjustments
                                                             
Tax rate adjustment
for employment tax     ------       (551)         ------       (551)
credits
                                                             
Adjusted net income    $1,636      $324        $3,739      $3,297
                                                             
Non-GAAP adjusted                                             
income per share:
Basic adjusted net
income per common      $0.22       $0.04       $0.50       $0.44
share
Diluted adjusted net
income per common      $0.21       $0.04       $0.49       $0.43
share
                                                             
Shares used to compute
non-GAAP income per                                           
share:
Weighted average
common share           7,450         7,327         7,419         7,494
outstanding - basic
Weighted average
common share           7,721         7,478         7,695         7,659
outstanding - diluted
                                                             
Income from Operations $1,216      $739        $4,801      $5,416
Depreciation and       1,502         1,520         4,579         4,448
amortization
                                                             
EBITDA                 2,718         2,259         9,380         9,864
                                                             
Non-cash items:                                               
Asset impairment and
estimated lease        1,176         13            1,166         288
termination and other
closing costs
Net loss on disposal   1             3             8             17
of equipment
                                                             
Adjusted EBITDA        $3,895      $2,275      $10,554     $10,169
                                                             

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

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