Famous Dave's Reports Results For Fiscal 2013

Famous Dave's Reports Results For Fiscal 2013

        Restaurant Level Cash Flow Margins Increased 250 Basis Points

                    Diluted Earnings Per Share Improved 9%

                 Adjusted Net Income Per Share Increased 37%

                             EBITDA Improves 14%

MINNEAPOLIS, Feb. 12, 2014 (GLOBE NEWSWIRE) -- Famous Dave's of America, Inc.
(Nasdaq:DAVE) today reported financial results for the fourth quarter and
fiscal year ending December 29, 2013.

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

  *Revenue decreased to $35.7 million from $36.3 million, reflecting a
    comparable sales decrease and lower franchise fee revenue.
  *Comparable sales for Company-owned restaurants open 24 months or more
    decreased 2.6%, compared to a decrease of 6.0% for the comparable quarter
    in the prior year.
  *Franchise royalty revenue of $4.0 million was slightly favorable to the
    prior year, reflecting revenue contribution from a net five new franchise
    restaurants, partially offset by a comparable sales decrease of 1.1%.
  *Restaurant level cash flow margins increased 160 basis points, reflecting
    year over year improvements in food & beverage costs and restaurant
    operating expenses.
  *Net income was $1.9 million, reflecting significant operational
    improvements. This compared to $750,000 for the fourth quarter of 2012.
  *Diluted net income per share was $0.25 compared to $0.10 in the fourth
    quarter of 2012. Earnings for the fourth quarter of 2012 were favorably
    impacted by a tax rate adjustment for employment tax credits equal to
    approximately $0.03 per diluted share.
  *Diluted adjusted net income per share was $0.25 compared to $0.07 for the
    fourth quarter of 2012.
  *Adjusted EBITDA for the fourth quarter of 2013 was $4.6 million compared
    to $2.4 million for the fourth quarter of 2012.

Highlights for fiscal 2013 as compared to fiscal 2012:

  *Revenue of $155.4 million increased approximately $444,000, reflecting an
    increase in restaurant sales, partially offset by a decline in franchise
    royalty revenue and fees.
  *Comparable sales for Company-owned restaurants open 24 months or more were
    0.2% positive compared to a decrease of 1.8% in 2012.
  *Franchise royalty revenue was $17.1 million, compared to $17.4 million,
    reflecting a franchise comparable sales decrease of 2.9%, partially offset
    by revenue generated from a net five new franchise restaurants.
  *Restaurant level cash flow margins increased 250 basis points, reflecting
    year over year improvement in all operating line items.
  *Cash flows provided by operations were $15.6 million for fiscal 2013,
    compared to $9.6 million for fiscal 2012.
  *Net income was $4.8 million compared to $4.4 million, reflecting
    improvements in restaurant level operations and lower G&A, partially
    offset by $1.2 million, or $0.11 per diluted share, for the non-cash asset
    impairment of a Maryland restaurant, a lease restructuring at a Virginia
    restaurant and residual closing costs for a Maryland restaurant that was
    relocated during 2013.
  *Diluted net income per share was $0.62 compared to $0.57, for 2012.
  *Diluted adjusted net income per share was $0.74, compared to $0.54 for
    fiscal 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 $15.1 million for fiscal 2013, compared
    to approximately $12.6 million for fiscal 2012.
  *The Company paid down $3.1 million of debt since the end of fiscal 2012.
  *The Company used approximately $6.9 million to repurchase approximately
    379,000 shares at an average price of $18.22, excluding commissions.

Dean Riesen, Chairman of the Company's board of directors, commented, "While
we were disappointed with our sales performance this quarter, we made great
strides on a number of initiatives this year, including improved unit level
economics and reduced overhead that should benefit us for the long-term."

Development

Famous Dave's opened 2 franchise-operated restaurants in Williston, North
Dakota and Oxnard, California as well as 1 company-owned restaurant in
Timonium, Maryland during the fourth quarter. Famous Dave's ended the quarter
with 194 restaurants, including 54 company-owned restaurants and 140
franchise-operated restaurants, located in 34 states, the Commonwealth of
Puerto Rico, and 1 Canadian province.

The company expects to open 1 company-owned restaurant, as well as 6
franchise-operated restaurants during fiscal 2014.

Outlook

"Unfortunately, as a result of severe weather patterns impacting essentially
all of our markets, sales to date have been softer than expected," said
Riesen. "We have a number of strategies going into BBQ season however, that
should prove effective towards building sales."

Conference Call

The company will host a conference call, February 13, 2014, at 10:00 a.m.
Central Time to discuss its fourth 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 54 locations and
franchises 142 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
DECEMBER 29, 2013 AND DECEMBER 30, 2012
(in thousands, except share and per share data)
(Unaudited)
                                                              
                          Three Months Ended        Twelve Months Ended
                          December 29, December 30, December 29, December 30,
                          2013         2012         2013         2012
Revenue:                                                    
Restaurant sales, net      $31,424    $31,792    $136,930   $135,730
Franchise royalty revenue  4,042        3,999        17,104       17,354
Franchise fee revenue      23           190          282          730
Licensing and other        232          274          1,116        1,174
revenue
Total revenue              35,721       36,255       155,432      154,988
                                                              
Costs and expenses:                                            
Food and beverage costs    9,421        10,012       41,431       42,431
Labor and benefits costs   10,685       10,598       44,335       44,257
Operating expenses         7,908        8,258        34,995       36,505
Depreciation and           1,581        1,552        6,160        6,000
amortization
General and administrative 2,862        4,786        18,903       18,708
expenses
Asset impairment and
estimated lease            15           82           1,181        370
termination and other
closing costs
Pre-opening expenses       277          157          646          474
Net loss on disposal of    26           13           34           30
property
Total costs and expenses   32,775       35,458       147,685      148,775
                                                              
Income from operations     2,946        797          7,747        6,213
                                                              
Other expense:                                                 
Interest expense           (226)        (257)        (997)        (1,050)
Interest income            1            2            7            7
Other income (expense),    30           (12)         20           (5)
net
Total other expense        (195)        (267)        (970)        (1,048)
                                                              
Income before income taxes 2,751        530          6,777        5,165
                                                              
Income tax (expense)       (879)        220          (2,010)      (805)
benefit
                                                              
Net income                 $1,872     $750       $4,767     $4,360
Basic net income per       $0.26      $0.10      $0.65      $0.58
common share
Diluted net income per     $0.25      $0.10      $0.62      $0.57
common share
Weighted average common    7,232        7,338        7,367        7,455
shares outstanding basic
Weighted average common    7,485        7,547        7,648        7,650
shares outstanding diluted


FAMOUS DAVE'S OF AMERICA, INC. AND SUBSIDIARIES
OPERATING RESULTS
(unaudited)
                                                                  
                            Three Months Ended          Twelve Months Ended
                            December 29,  December 30,  December 29, December
                                                                      30,
                            2013          2012          2013         2012
Food and beverage costs^(1)  30.0%         31.5%         30.3%        31.3%
Labor and benefits^(1)       34.0%         33.3%         32.4%        32.6%
Operating expenses^(1)(3)    25.2%         26.0%         25.6%        26.9%
                                                                  
Restaurant level cash flow   10.8%         9.2%          11.7%        9.2%
margins^(1)(5)
                                                                  
Depreciation & amortization  4.4%          4.4%          4.0%         4.0%
(restaurant level)^(1)
Asset impairment and
estimated lease termination  ------       0.3%          0.9%         0.3%
and other closing costs^(1)
Pre-opening expenses andnet
loss on disposal of          1.0%          0.5%          0.5%         0.4%
equipment^(1)
Costs and expenses           94.6%         96.0%         93.7%        95.5%
(restaurant level)^(1)
Restaurant level             5.4%          4.0%          6.3%         4.5%
margin^(1)(4)
                                                                  
Depreciation & amortization  0.6%          0.5%          0.5%         0.4%
(corporate level)^(2)
General and                  8.0%          13.2%         12.2%        12.1%
administrative^(2)(3)
                                                                  
Total costs and expenses^(2) 91.8%         97.8%         95.0%        96.0%
Income from operations^(2)   8.2%          2.2%          5.0%         4.0%
                                                                  
                                                                  
^(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 fourth quarter of fiscal 2012, this
adjustment was approximately $461,000.For the fiscal year ended 2012, this
adjustment was approximately $1,859,000.
^(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 flow margins 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)
                                                               
                                                   December 29, December 30,
                                                   2013         2012
ASSETS                                                          
Cash and cash equivalents                           $1,293     $2,074
Other current assets                                10,764       10,272
Property, equipment and leasehold improvements, net 59,733       60,429
Other assets                                        3,547        3,478
Total assets                                        $75,337    $76,253
                                                               
LIABILITIES AND SHAREHOLDERS' EQUITY                            
Current liabilities                                 $14,391    $12,117
Line of credit                                      11,400       13,600
Other long-term obligations                         16,755       16,769
Shareholders' equity                                32,791       33,767
Total liabilities and shareholders' equity          $75,337    $76,253


FAMOUS DAVE'S OF AMERICA, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(in thousands)
(unaudited)
                                                                
                                                    Twelve Months Ended
                                                    December 29, December 30,
                                                    2013         2012
                                                                
Cash flows provided by operating activities          $15,600    $9,626
Cash flows used for investing activities             (6,813)      (5,473)
Cash flows used for financing activities             (9,568)      (3,227)
Net (decrease) increase in cash and cash equivalents $(781)     $926


SUPPLEMENTAL SALES INFORMATION
(unaudited)
                                                              
                          Three Months Ended        Twelve Months Ended
                          December 29, December 30, December 29, December 30,
                          2013         2012         2013         2012
                          ^           ^           ^           ^
Restaurant sales (in                                           
thousands):
Company-Owned              $31,424    $31,792    $136,930   $135,730
Franchise-Operated         $85,462    $82,614    $363,438   $361,109
                                                              
Total number of                                                
restaurants:
Company-Owned              54           53           54           53
Franchise-Operated         140          135          140          135
Total                      194          188          194          188
                                                              
Total weighted average                                         
weekly net sales (AWS):
Company-Owned              $45,084    $46,009    $49,514    $49,172
Franchise-Operated         $48,093    $48,100    $52,136    $52,714
                                                              
Operating weeks:                                               
Company-Owned              697          691          2,762        2,754
Franchise-Operated         1,777        1,717        6,971        6,848
                                                              
Weighted comparable net
sales by category (24                                          
month):
Dine-in                    (3.8)%       (5.5)%       (1.9)%       (2.1)%
To Go                      2.8%         (1.2)%       2.6%         0.0%
Catering                   (1.6)%       0.7%         (0.6)%       0.3%
Total company-owned        (2.6)%       (6.0)%       0.2%         (1.8)%
comparable sales %
                                                              
Franchise-Operated %       (1.1)%       (4.0)%       (2.9)%       (2.0)%
                                                              
Total number of comparable                                     
restaurants:
Company-Owned              49           50           48           49
Franchise-Operated         119          112          114          107


FAMOUS DAVE'S OF AMERICA, INC.
NON-GAAP RECONCILIATION
(in thousands, except share and per share data)
(unaudited)
                                                              
                        Three Months Ended          Twelve Months Ended
                                                              
                        December 29, December 30, December 29, December 30,
                        2013         2012           2013         2012
                                                              
Net income               $1,872     $750         $4,767     $4,360
Asset impairment and
estimated lease          15           82             1,181        370
termination and other
closing costs
Net loss on disposal of  26           13             34           30
equipment
Tax adjustment for       (13)         (39)           (360)        (62)
non-cash adjustments
                                                              
Tax rate adjustments for --          (261)          --          (559)
employment tax credits
                                                              
Adjusted net income      $1,900     $545         $5,622     $4,139
                                                              
Non-GAAP adjusted income                                       
per share:
Basic adjusted net       $0.26      $0.07        $0.76      $0.56
income per common share
Diluted adjusted net     $0.25      $0.07        $0.74      $0.54
income per common share
                                                              
Shares used to compute
Non-GAAP income per                                            
share:
Weighted average common
share outstanding -      $7,232     $7,338       $7,367     $7,455
basic
Weighted average common
share outstanding -      $7,485     $7,547       $7,648     $7,650
diluted
                                                              
Income from operations   $2,946     $797         $7,747     $6,213
Depreciation and         1,581        1,552          6,160        6,000
amortization
                                                              
EBITDA                   4,527        2,349          13,907       12,213
                                                              
Non-cash items:                                                
Asset impairment and
estimated lease          15           82             1,181        370
termination and other
closing costs
Net loss on disposal of  26           13             34           30
equipment
                                                              
Adjusted EBITDA          $4,568     $2,444       $15,122    $12,613

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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