Revenue increased 5% to $43.4 million
Same Store Sales increased 3.8%
Earnings Per Share increased 8.0% to $0.27
Second Quarter Restaurant Level Margin increased 360 basis points
MINNEAPOLIS, July 24, 2013 // GLOBE NEWSWIRE // -- Famous Dave's of America, Inc. (Nasdaq:DAVE) today reported financial results for the second quarter and six months ending June 30, 2013.
Highlights for the second quarter of 2013 as compared to the second quarter of 2012 include:
John Gilbert, CEO of Famous Dave's, commented, "I am pleased with our performance in spite of the economic environment that continues to challenge the restaurant industry. Our improved quarterly financials are the result of a more focused organization executing on our previously announced program to optimize the customer experience at each point of interaction: dine-in, To Go, catering and retail. As a result of these efforts I firmly believe we are a stronger company today than we were one year ago with company-owned same store sales growth, improved store level profitability and reduced G&A expenses more appropriate for the size of our business."
Mr. Gilbert continued, "For example, with regard to G&A expenses this quarter, we recorded $271,000 of severance costs associated with a comprehensive 18-month profit improvement program. We will realize the benefits from the reduction in force over the balance of this year and far into the future. Furthermore, this will bring our G&A expenses in alignment with restaurant companies within our peer set and is consistent with our redesigned incentive compensation program, which is now closely tied to the Company's EBITDA."
Several initiatives have led to sequential sales growth at company-owned restaurants and improvements at franchise restaurants. These include:
Famous Dave's opened a restaurant in Puerto Rico during the second quarter, and closed a franchise location in New York, New York. Famous Dave's ended the quarter with 187 restaurants, including 53 company-owned restaurants and 134 franchise-operated restaurants, located in 34 states, the Commonwealth of Puerto Rico, and 1 Canadian province. Subsequent to the quarter, the Company opened 3 franchise-operated restaurants, in Holt, Michigan, Omaha, Nebraska, and Hayward, California and closed a restaurant for relocation purposes, in Overland Park, Kansas.
In addition to 2 company-owned restaurants expected to open in the third and fourth quarter, we expect to see a total of 9 franchise units opened in 2013, with one expected opening shifting from late 2013 to early 2014.
Gilbert concluded by saying, "We are now beginning to realize the benefits of our improved business model and I am confident that our cost reduction measures and strategic initiatives introduced throughout this year will continue to drive value improvement for our investors 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.
The company will host a conference call tomorrow, July 25, 2013, at 10:00 a.m. Central Time to discuss its second 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 136 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.
CONTACT:
Diana G. Purcel
Chief Financial Officer
952-294-1300
Famous Dave's of America
Famous Dave's of America, Inc. develops, owns, operates and franchises Bar B Que restaurants.