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:
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."
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.
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.
"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.
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.
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.
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.
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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.
Gretchen Anthony
Director of Communication
952-294-1300
SOURCE Famous Dave's of America
Famous Dave's of America, Inc. develops, owns, operates and franchises Bar B Que restaurants.