Income per Diluted Share Increased 44%
Income from Operations Increased 38%
Adjusted EBITDA Increased 25%
MINNEAPOLIS - Aug. 5, 2014 // GLOBE NEWSWIRE // - Famous Dave's of America, Inc. (Nasdaq:DAVE) today reported financial results for the second quarter and the six months ending June 29, 2014.
Highlights for the second quarter of 2014 as compared to the second quarter of 2013:
Highlights for the six months ended June 29, 2014 as compared to the six months ended June 30, 2013:
Ed Rensi, Famous Dave's CEO, commented, "While the quarter's comparable sales numbers were disappointing, they were partially the result of the elimination of the extensive email discounting that occurred during the second quarter of fiscal 2013. Excluding the impact of these discounts from last year, we estimate that our comparable sales decline would have been approximately half of the reported number. Despite the decline in top-line sales this quarter, we were pleased with the year over year improvements in operating income and earnings per share."
"During the quarter, we continued make significant progress on the reimage of the Bolingbrook, Illinois restaurant. We are excited about these changes and their potential impact. We remain completely committed to serving the very best BBQ in the country – that remains our mission and focus. We have made changes to allow our guests to enjoy our food in new and more contemporary ways – whether on salads and flat breads, as part of our new bar menu or paired with our expanded selection of over 30 craft and local beers. We have updated our dining room and expanded our patio, adding fire pits, and connected this to an improved bar to allow for indoor-outdoor seating. We have added lots of entertainment – giant HD TVs, updated our music, added tablet-based games for both adults and kids and improved our wifi coverage and bandwidth. Our servers can now take your orders by tablet and our kitchen has been updated using the latest cooking technology. These changes enable our guests to enjoy our delicious food served much faster in a restaurant that is just a more enjoyable place to be. Furthermore, over time, we expect these changes to enhance and improve our unit-level economics. Early feedback from our guests and team members has been positive. Over the next several months we will analyze the impact and once we are confident we will deploy them to the rest of the system to aid in top-line sales growth and unit-level profitability at new company-owned restaurants."
As we look out at the remainder of 2014, we know that we will continue to struggle with top-line sales, particularly on a comparable basis, as the level of email discounting accelerated in the second-half of 2013. Ending this strategy will continue to negatively impact our top-line performance through until at least the end of the first quarter of 2015.
We will continue to focus on driving top-line sales by improving the overall guest experience; as well as improving our restaurant margins and prudently managing our other expenses."
The company is currently featuring its build your own BBQ, or BYOB, which is a handheld BBQ meal with bright flavors at a value price, that guests create themselves with a choice of Georgia Chopped Pork, Texas Beef Brisket or Original Burnt Ends as the main ingredient and a choice of a tortilla or a lettuce cup as the carrier. This is served with Chipotle Rice, Mustard Slaw, a Chimichurri sauce and a variety of fresh flavored pickles and onions as accompaniments. Recently, we added chicken and steak to the BYOB menu.
Famous Dave's opened one franchise-operated restaurant during the second quarter in Bayamon Puerto Rico.
Famous Dave's ended the quarter with 194 restaurants, including 53 company-owned restaurants and 141 franchise-operated restaurants, located in 34 states, the Commonwealth of Puerto Rico, and 1 Canadian province.
For fiscal 2014, the company now expects to open approximately a total of four new franchise-operated locations.
The company will host a conference call August 5, 2014, at 3:30 p.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 141 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, adjusted basic and diluted 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 basic and diluted net income per share consists of net income plus items, such as, asset impairment and estimated lease termination and other closing costs, net loss on disposal of equipment, and the recapture of stock-based compensation and severance costs related to the level of Vice President (VP) and above, divided by the weighted average number of shares of stock outstanding (plus stock equivalents for the diluted calculation) during each period presented. Famous Dave's of America, Inc. believes adjusted basic and diluted 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 items, such as, asset impairment and estimated lease termination and other closing costs, net loss on disposal of equipment, and the recapture of stock-based compensation and severance costs related to the level of Vice President (VP) and above. 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, Adjusted EBITDA and basic and diluted net income per share to basic and diluted adjusted net income per share.
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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.
SOURCE Famous Dave's of America
Richard Pawlowski
Chief Financial Officer
952-294-1300
Famous Dave's of America, Inc. develops, owns, operates and franchises Bar B Que restaurants.