MINNEAPOLIS, Feb. 19, 2015 // GLOBE NEWSWIRE // -- Famous Dave's of America, Inc. (Nasdaq:DAVE) today reported financial results for the fourth quarter and fiscal year ending December 28, 2014.
Highlights for the fourth quarter of 2014 as compared to the fourth quarter of 2013:
Highlights for fiscal 2014 as compared to fiscal 2013:
Ed Rensi, CEO of Famous Dave's commented, "The Company's top line sales performed in line with our expectations for both the fourth quarter and fiscal 2014. We expect to continue to face top line sales headwinds until the middle of the second quarter of 2015. We confidently believe that our decision to eliminate the heavy discounting strategy that was in place for 2013 and early 2014 was, and is, the right one. During the fourth quarter we made important strategic investments and made some tough portfolio rationalization decisions that mask the underlying progress that we are making. We will continue to focus on driving sales without the use of heavy discounting while prudently managing our expenses and actively manage our refranchising strategy. Capital allocation remains front of mind as we look to create meaningful increases in shareholder value. We are confident that the path we are on is the right one."
Famous Dave's opened one franchise-operated restaurant in Largo, Maryland during the fourth quarter and closed three company-owned restaurants as well as four franchise-operated restaurants. Famous Dave's ended the quarter with 189 restaurants, including 50 company-owned restaurants and 139 franchise-operated restaurants, located in 34 states, the Commonwealth of Puerto Rico, and Canada.
The company will host a conference call, February 19, 2015, at 7:30 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.
Famous Dave's of America, Inc. develops, owns, operates and franchises barbeque restaurants. As of today, the company owns 50 locations and franchises 137 additional units in 34 states, the Commonwealth of Puerto Rico, and Canada. 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.
SOURCE Famous Dave's of America, Inc.
Richard Pawlowski
Chief Financial Officer
952-294-1300
Famous Dave's of America, Inc. develops, owns, operates and franchises Bar B Que restaurants.