MINNEAPOLIS, Oct 26, 2011 (GlobeNewswire via COMTEX) -- Famous Dave's of America, Inc. (Nasdaq:DAVE) today announced revenue and net income of $38.9 million and $1.6 million, respectively, or $0.19 per diluted share, for the third quarter ended October 2, 2011. This compares to revenue and net income of $38.7 million and $1.5 million, respectively, or $0.17 per diluted share, for the comparable period in 2010.
For the first nine months of 2011, the Company reported $0.63 per diluted share, including a non-cash impairment charge taken in the first quarter of approximately $148,000 or $0.01 per diluted share, as compared to $0.76 per diluted share for the first nine months of 2010, which included a $0.15 gain from the acquisition of seven franchise restaurants. Revenue and net income for the year-to-date period in 2011 were $117.3 million and $5.1 million, respectively. For the 2010 comparable period, the Company reported revenue and net income of $112.1 million and $6.7 million, respectively, including a $2.0 million gain on the acquisition of the seven New York/New Jersey restaurants.
Same store sales for company-owned restaurants open for 24 months or more decreased 0.1 percent during the quarter, compared to an increase of 2.4 percent for the third quarter of 2010. Comparable sales reflected the negative impact from weather-related events on the East coast equal to approximately 70 basis points, and also included a weighted average price increase of approximately 3.4 percent. On a year-to-year basis, comparable sales for company-owned restaurants increased 0.8%, compared to a decrease of 0.3%, for the comparable period in 2010.
"The third quarter reflected the continuation of difficult economic conditions in general, as well as earthquake and hurricane events on the East Coast," said Christopher O'Donnell, president and chief executive of Famous Dave's. "Our operations team deserves special recognition for their performance during these truly extraordinary circumstances. We were open when others were not, serving our communities, and re-opened closed units quickly after those events to minimize the impact on the business."
Franchise royalty revenue for the third quarter of 2011 totaled $4.2 million, compared to $4.0 million for the comparable period in 2010. The increase reflects the opening of ten new restaurants since the third quarter of 2010, partially offset by the five franchise restaurants that closed during this timeframe, and a decrease in comparable sales of 1.0%. Franchise royalty revenue on a year-to-date basis totaled $12.6 million, compared to $12.2 million for the three quarters of 2010. This increase reflects the new openings since the third quarter of 2010, partially offset by the loss of royalties for the two months prior to acquisition for the New York/New Jersey restaurants, and the comparable sales decrease of 0.7% for the year-to-date period.
Earnings results for the third quarter of 2011 included approximately $427,000 or $0.03 per diluted share, in compensation expense related to the company's stock-based incentive programs and board of directors' cash compensation, as compared to approximately $325,000 or $0.02 per diluted share, for the prior year comparable period. The increase is primarily due to an increase in the Company's stock price over the prior year. Stock-based compensation expense and board of directors' cash compensation expense for the year-to-date period ended October 2, 2011 was approximately $1.3 million or $0.10 per diluted share, compared to approximately $1.0 million or $0.08 per diluted share for the prior year comparable period.
The company repurchased approximately 46,620 shares of common stock during the fiscal 2011 third quarter at an average price of $9.55 per share, excluding commissions, for a total of approximately $446,000. The company has repurchased approximately 306,100 shares of common stock during the year-to-date period of 2011 at an average price of $10.15 per share, excluding commissions, for a total of $3.1 million. The Company has now repurchased approximately 480,230 shares under its current 1.0 million share authorization at an average price of $10.21 per share, excluding commissions, for a total of approximately $4.9 million.
Development and marketing highlights during the quarter included "Dave's Day," immediately followed by the "Hog Days of Summer," which featured "Buck-a-Bone" and 50 cent chicken wing specials with the purchase of an entree. The company is currently featuring Southside Rib Tips as the fall limited time offering, which is a core menu item, reinvented with a dry rub and a new Southside Sauce. The company will be featuring direct mail and in-store bounce-back promotions during the fourth quarter this year. "Our customers remain value-oriented," said O'Donnell, "and we are addressing that with tactics during the fourth quarter which appeal to both businesses and consumers."
Famous Dave's opened two new franchise-operated restaurants in Erie, PA and Portland, OR during the third quarter. Famous Dave's ended the quarter with 184 restaurants, including 53 company-owned restaurants and 131 franchise-operated restaurants, located in 37 states.
"We continue to grow as a system and as a brand. We recently opened a location in Falls Church, Virginia during the quarter and soon will be opening a quick casual 'shack' in Eden Prairie, Minnesota in early-December. Additionally, we are excited about our upcoming expansion into Canada with a franchise partner, and the potential for future growth opportunities."
The company is reaffirming its guidance on restaurant development, and anticipates opening one more company-owned restaurant and approximately three franchise-operated restaurants during the fourth quarter of fiscal 2011.
The company will host a conference call tomorrow, October 27, 2011, 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.
Famous Dave's of America, Inc. develops, owns, operates and franchises barbeque restaurants. As of today, the company owns 53 locations and franchises 131 additional units in 37 states. 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
FAMOUS DAVE'S OF AMERICA, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS
OCTOBER 2, 2011 AND OCTOBER 3, 2010
(in thousands, except share and per share data)
(Unaudited)
Three Months Ended Nine Months Ended
-------------------- ---------------------
October October October
2, 3, October 2, 3,
2011 2010 2011 2010
--------- --------- ---------- ---------
Revenue:
Restaurant sales, net $ 34,315 $ 34,313 $ 103,560 $ 98,919
Franchise royalty revenue 4,234 4,012 12,644 12,208
Franchise fee revenue 150 145 320 235
Licensing and other revenue 228 233 783 689
--------- --------- ---------- ---------
Total revenue 38,927 38,703 117,307 112,051
--------- --------- ---------- ---------
Costs and expenses:
Food and beverage costs 10,292 10,177 30,577 29,121
Labor and benefits costs 10,829 10,944 32,390 31,217
Operating expenses 9,536 9,475 28,584 26,719
Depreciation and
amortization 1,404 1,401 4,154 4,070
General and administrative
expenses 4,012 4,027 12,534 11,753
Asset impairment and
estimated lease termination
and other closing costs (28) 4 158 (68)
Pre-opening expenses 237 219 282 300
Gain on acquisition, net of
acquisition costs --- --- --- (2,036)
Net loss on disposal of
property 3 12 10 20
--------- --------- ---------- ---------
Total costs and expenses 36,285 36,259 108,689 101,096
--------- --------- ---------- ---------
Income from operations 2,642 2,444 8,618 10,955
--------- --------- ---------- ---------
Other expense:
Interest expense (261) (238) (821) (800)
Interest income 6 19 19 78
Other expense, net (15) (8) (15) (12)
--------- --------- ---------- ---------
Total other expense (270) (227) (817) (734)
--------- --------- ---------- ---------
Income before income taxes 2,372 2,217 7,801 10,221
Income tax expense (807) (759) (2,653) (3,520)
--------- --------- ---------- ---------
Net income $ 1,565 $ 1,458 $ 5,148 $ 6,701
========= ========= ========== =========
Basic net income per common
share $ 0.20 $ 0.17 $ 0.64 $ 0.77
========= ========= ========== =========
Diluted net income per common
share $ 0.19 $ 0.17 $ 0.63 $ 0.76
========= ========= ========== =========
Weighted average common
shares outstanding basic 7,994,000 8,498,000 8,041,000 8,715,000
========= ========= ========== =========
Weighted average common
shares outstanding diluted 8,173,000 8,631,000 8,219,000 8,870,000
========= ========= ========== =========
See accompanying notes to consolidated financial statements.
FAMOUS DAVE'S OF AMERICA, INC. AND SUBSIDIARIES
OPERATING RESULTS
(unaudited)
Three Months Nine Months
Ended Ended
---------------- ----------------
October October October October
2, 3, 2, 3,
2011 2010 2011 2010
------- ------- ------- -------
Food and beverage costs (1) 30.0% 29.7% 29.5% 29.4%
Labor and benefits (1) 31.6% 31.9% 31.3% 31.6%
Operating expenses (1) 27.8% 27.6% 27.6% 27.0%
Depreciation & amortization (restaurant
level) (1) 3.6% 3.7% 3.6% 3.7%
Depreciation & amortization (corporate
level) (2) 0.4% 0.4% 0.4% 0.4%
General and administrative (2) 10.3% 10.4% 10.7% 10.5%
Asset impairment and estimated lease
termination and other closing costs (1) (0.1)% --- 0.2% (0.1)%
Pre-opening expenses and net loss on
disposal of equipment (1) 0.7% 0.7% 0.3% 0.3%
Gain on acquisition, net of acquisition
costs (1) --- --- --- (2.1)%
Total costs and expenses (2) 93.2% 93.7% 92.7% 90.2%
Income from operations (2) 6.8% 6.3% 7.3% 9.8%
------------------------------------------
(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)
October January
2, 2,
2011 2011
--------- ---------
ASSETS
Cash and cash
equivalents $ 1,669 $ 2,654
Other current assets $ 9,314 $ 8,593
Property, equipment and
leasehold improvements,
net $ 60,893 $ 61,550
Other assets $ 3,229 $ 3,332
--------- ---------
Total assets $ 75,105 $ 76,129
========= =========
LIABILITIES AND
SHAREHOLDERS' EQUITY
Current liabilities $ 12,769 $ 13,854
Line of credit $ 10,000 $ 13,000
Other long-term
obligations $ 16,268 $ 16,371
Shareholders' equity $ 36,068 $ 32,904
--------- ---------
Total liabilities and
shareholders' equity $ 75,105 $ 76,129
========= =========
FAMOUS DAVE'S OF AMERICA, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(in thousands)
(unaudited)
Nine Months Ended
-----------------------
October 2, October 3,
2011 2010
---------- -----------
Cash flows provided by operating activities $ 8,476 $ 9,010
Cash flows used for investing activities $ (3,044) $ (10,250)
Cash flows used for financing activities $ (6,417) $ (44)
---------- -----------
Net decrease in cash and cash equivalents $ (985) $ (1,284)
========== ===========
SUPPLEMENTAL SALES INFORMATION
(unaudited)
Three Months Ended Nine Months Ended
-------------------- ---------------------
October October October
2, 3, October 2, 3,
2011 2010 2011 2010
--------- --------- ---------- ---------
Restaurant sales (in
thousands):
Company-Owned $ 34,315 $ 34,313 $ 103,560 $ 98,919
Franchise-Operated 90,715 85,968 271,529 261,245
Total number of
restaurants:
Company-Owned 53 53 53 53
Franchise-Operated 131 126 131 126
--------- --------- ---------- ---------
Total 184 179 184 179
Total weighted average
weekly net sales (AWS):
Company-Owned $ 50,199 $ 50,106 $ 50,859 $ 49,927
Franchise-Operated $ 53,773 $ 53,367 $ 54,314 $ 54,057
AWS 2005 and Post
2005:(1)
Company-Owned $ 54,806 $ 57,343 $ 55,647 $ 56,946
Franchise-Operated $ 56,446 $ 56,740 $ 57,326 $ 58,002
AWS Pre-2005:(1)
Company-Owned $ 47,264 $ 45,791 $ 47,848 $ 46,183
Franchise-Operated $ 48,564 $ 47,567 $ 48,430 $ 47,470
Operating weeks:
Company-Owned 681 680 2,033 1,969
Franchise-Operated 1,687 1,607 4,998 4,826
Comparable net sales (24
month):
Company-Owned % (0.1)% 2.4% 0.8% (0.3)%
Franchise-Operated % (1.0)% 0.7% (0.7)% (0.8)%
Total number of
comparable restaurants:
Company-Owned 51 42 44 41
Franchise-Operated 109 102 102 95
------------------------
(1)Provides further delineation of AWS for restaurants opened during
the pre-fiscal 2005, and restaurants opened during the post-fiscal
2005, timeframes.
Statements in this press release that are not strictly historical, including but not limited to statements regarding the timing of our restaurant openings and the timing or success of our expansion plans, are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These forward-looking statements involve known and unknown risks, which may cause the company's actual results to differ materially from expected results. Although Famous Dave's of America, Inc. believes the expectations reflected in any forward-looking statements are based on reasonable assumptions, it can give no assurance that its expectation will be attained. Factors that could cause actual results to differ materially from Famous Dave's expectation include financial performance, restaurant industry conditions, execution of restaurant development and construction programs, franchisee performance, changes in local or national economic conditions, availability of financing, governmental approvals and other risks detailed from time to time in the company's SEC reports.
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SOURCE: Famous Dave's of America
Famous Dave's of America, Inc. develops, owns, operates and franchises Bar B Que restaurants.