Famous Dave's Reports Third Quarter Earnings of $0.19 Per Share

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.

Stock-based and Board of Directors Cash Compensation and Common Share Repurchase

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.

Marketing and Development

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."

Outlook

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.

Conference Call

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.

About Famous Dave's

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.

This news release was distributed by GlobeNewswire, www.globenewswire.com

SOURCE: Famous Dave's of America

###

Share this Story:

Comments:

comments powered by Disqus

Franchise News Room »


News By Industry »


Featured Opportunities

Papa Murphy's Take 'N' Bake Pizza
The world's largest, fastest growing Take 'N' Bake pizza franchise is offering you something fresh.
RedBrick Pizza
At RedBrick Pizza (R), old world traditions meet new world recipes to create a better-for-you pizza experience. Baking pizzas to perfection at 1000...
Jimmy John's Sandwiches
One of the fastest growing franchises in the U.S., Jimmy John’s has been making fresh, fast, tasty sandwiches since 1983.
Estrella Insurance
Estrella Insurance® specializes auto insurance & car insurance quotes.
MassageLuXe
MassageLuXe® is a fast-growing massage franchise providing massage services to clients, primarily through multi-unit area developers & single...

Subscribe to Franchising.com Express

A Franchise Update Media Production
Franchise Update Media | P.O. Box 20547 // San Jose, CA 95160 // PH. (408) 402-5681
Copyright © 2001 - 2017. All Rights Reserved.

In Loving Memory Of Timothy Gardner (1987-2014)