Famous Dave's of America, Inc. (NASDAQ:DAVE) today reported
financial results for the third quarter ending October 2, 2016.
Highlights for the third quarter of 2016 as compared to
the third quarter of 2015:
- Comparable sales for Company-owned restaurants open 24 months
or more decreased 1.0% compared to a decrease of 9.1% for the same
period in 2015;
- Franchise royalty revenue remained flat at $4.3 million
primarily reflecting a net new four franchise-operated restaurants
since the end of the third quarter of fiscal 2015, completely
offset by a comparable sales decrease of 3.8%;
- Restaurant-level operating margin at Company-owned restaurants
increased 40 basis points primarily as a result of a year over year
decline in labor and benefit costs partially offset by sales
deleverage on operating expenses;
- General and administrative expenses increased from
approximately $4.1 million to approximately $4.5 million for the
third quarter of 2016. This year over year increase was a
result of a settlement agreement, costs incurred for franchise
related matters, and stock-based compensation expense partially
offset by declines in severance and travel costs;
- During the third quarter of fiscal 2016 the Company incurred
approximately $3.6 million of asset impairment, estimated lease
termination, and other closing costs. Included was
approximately $3.4 million of restaurant impairment charges.
This compares to $650,000 of asset impairment, estimated
lease termination, and other closing costs recorded in the third
quarter of fiscal 2015;
- GAAP net loss from continuing operations for the third quarter
of fiscal 2016 was $2.4 million compared to net income of $957,000
for the same period in fiscal 2015; Adjusted net income from
operations was approximately $44,000 compared to a loss of
$71,000 for the third quarter of fiscal 2015;
- GAAP net loss from continuing operations was $0.34 per basic
share for the third quarter of fiscal 2016, compared to income of
$0.14, per diluted share, for the third quarter of fiscal 2015; and
Adjusted net income from continuing operations per share was $0.01
per diluted share for the third quarter of fiscal 2016, compared to
a loss of $0.01 per basic share, for the third quarter of fiscal
2015;
Mike Lister, CEO, commented, “The board and management team
continues to operate with a strong sense of urgency and focus on
improved performance. Having our company-owned restaurants post the
best comparable sales performance in 12 quarters helps validate and
energize our team’s commitment to the four key priorities of
revitalizing sales and traffic, reducing costs, elevating
organizational effectiveness, and rebuilding culture. Collectively,
the entire Brand is very excited at the opportunity to return
Famous Dave’s of America to long term Famous performance.”
Famous Dave's ended the quarter with 176 restaurants, including
37 Company-owned restaurants and 139 franchise-operated
restaurants, located in 32 states, the Commonwealth of Puerto Rico,
Canada, and United Arab Emirates.
Restaurant Impairment
During the third quarter of fiscal 2016, the Company recorded
approximately $3.4 million in asset impairment charges associated
with 11 restaurants which were slow to respond to several
initiatives to turnaround operating performance. As a result,
the Company determined that the estimated fair value of the assets
was less than the net book value and recognized an impairment
charge to reduce the related assets to the estimated fair
value. As we continue to evaluate the restaurant portfolio we
anticipate addressing the ongoing operation of the 11 locations
impaired over the next 3 years by way of lease restructuring, lease
assignment or subsequent closure at the end of their natural lease
term.
Credit Facility Covenant Compliance &
Forbearance
The Company and its subsidiaries are borrowers under a Third
Amended and Restated Credit Agreement, as amended, with Wells Fargo
Bank, National Association as administrative agent and
lender.
The Credit Agreement will mature on December 31, 2017 and
contains a $1.9 million revolving credit facility and a term loan
with a maximum borrowing amount of $8.4 million. Additionally,
the Borrowers deposited 105% of the face amount of the outstanding
letters of credit in a cash collateral account with the
Administrative Agent which is included in restricted cash on our
Consolidated Balance Sheet. We were in compliance with all
covenants of the Credit Agreement for the quarter ended October 2,
2016 except for two financial covenants: the Adjusted Leverage
Ratio and the Minimum Adjusted EBITDA.
On November 9, 2016, the Borrowers and the Lender entered into a
Forbearance Agreement pursuant to which the Lender agreed to
forbear from exercising its rights and remedies under the Credit
Agreement relating to the existing events of default during the
Forbearance Period ending December 9, 2016 or on the earlier date
of any other Event of Default under the Credit Agreement or breach
of the Forbearance Agreement occurs. During the Forbearance
Period, we intend to re-finance the Credit Agreement with another
lender. Under the Forbearance Agreement, we have agreed not to
request and Wells Fargo is not obligated to make any further
extensions of credit to us under the Credit Agreement. As a
result of the events of default for the quarter ended October 2,
2016 and length of the Forbearance Period, all outstanding
obligations under the Credit Agreement were classified as current
liabilities. During the Forbearance period, the Company intends to
finalize its refinancing arrangement.
As of October 2, 2016, the Company had $6.8 million in cash and
cash equivalents. During the first nine months of fiscal 2016
the Company generated approximately $2.7 million in cash from
operating activities compared to $2.1 million in the comparable
period of the prior year. As of October 2, 2016, the Company ended
the third quarter with total net debt of approximately $5.8
million. This compares to $11.4 million of net debt as of September
27, 2015.
Conference Call
The company will host a conference call November 14, 2016, 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.
About Famous Dave’s
Famous Dave’s of America, Inc. develops, owns, operates and
franchises barbeque restaurants. As of today, the Company has 176
restaurants, including 37 Company-owned restaurants and 139
franchise-operated restaurants, located in 32 states, the
Commonwealth of Puerto Rico, Canada, and United Arab
Emirates. Its menu features award-winning barbequed and
grilled meats, a selection of salads, sandwiches, side items, and
made-from-scratch desserts.
To supplement its financial statements, Famous Dave’s of
America, Inc. also provides investors with adjusted net (loss)
income per share from continuing operations and adjusted income
(loss) from operations 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 (loss) from continuing operations per share
consists of net (loss) income plus non-cash items, such as, asset
impairment, estimated lease termination and other closing costs,
net loss (gain) on disposal of equipment, settlement agreements, VP
level and above stock based compensation recapture and the related
tax impact, divided by the weighted average number of shares of
stock outstanding during each period presented. Famous Dave’s of
America, Inc. believes adjusted net income (loss) from continuing
operations per share is useful to an investor because it is widely
used to measure a company's operating performance.
Adjusted income (loss) from operations consists of (loss) income
from operations plus non-cash items, such as, asset impairment,
estimated lease termination and other closing costs and net loss on
disposal of equipment, settlement agreements, and VP level and
above stock based compensation recapture. Famous Dave’s uses
adjusted income from operations 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 income
from operations is useful to an investor in evaluating the
company's operating performance because it is widely used to
measure a Company's operating performance 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 (loss) income from continuing
operations to adjusted net (loss) income from continuing operations
per common share and adjusted (loss) income from operations.
|
|
FAMOUS
DAVE’S OF AMERICA, INC. AND SUBSIDIARIES |
|
CONSOLIDATED STATEMENTS OF OPERATIONS |
|
OCTOBER 2,
2016 AND SEPTEMBER 27, 2015 |
|
(in
thousands, except per share data) |
|
(Unaudited) |
|
|
|
|
|
Three Months Ended |
|
Nine Months Ended |
|
|
|
|
|
October
2, |
|
September 27, |
|
October
2, |
|
September 27, |
|
|
|
|
|
2016 |
|
2015 |
|
2016 |
|
2015 |
|
Revenue: |
|
|
|
|
|
|
|
|
|
|
|
|
|
Restaurant
sales, net |
$ |
|
20,999 |
|
|
$ |
|
23,323 |
|
|
$ |
|
63,013 |
|
|
$ |
|
74,576 |
|
|
|
Franchise
royalty revenue |
|
|
4,311 |
|
|
|
|
4,312 |
|
|
|
|
13,162 |
|
|
|
|
13,263 |
|
|
|
Franchise
fee revenue |
|
|
--- |
|
|
|
|
--- |
|
|
|
|
135 |
|
|
|
|
255 |
|
|
|
Licensing
and other revenue |
|
|
200 |
|
|
|
|
245 |
|
|
|
|
784 |
|
|
|
|
765 |
|
|
|
|
|
Total
revenue |
|
|
25,510 |
|
|
|
|
27,880 |
|
|
|
|
77,094 |
|
|
|
|
88,859 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Costs and expenses: |
|
|
|
|
|
|
|
|
|
|
|
|
|
Food and
beverage costs |
|
|
6,507 |
|
|
|
|
7,246 |
|
|
|
|
19,619 |
|
|
|
|
22,752 |
|
|
|
Labor and
benefits costs |
|
|
7,069 |
|
|
|
|
8,316 |
|
|
|
|
21,323 |
|
|
|
|
24,974 |
|
|
|
Operating
expenses |
|
|
6,618 |
|
|
|
|
6,976 |
|
|
|
|
18,681 |
|
|
|
|
21,396 |
|
|
|
Depreciation and amortization |
|
|
909 |
|
|
|
|
1,064 |
|
|
|
|
2,845 |
|
|
|
|
3,387 |
|
|
|
General and
administrative expenses |
|
|
4,532 |
|
|
|
|
4,141 |
|
|
|
|
13,143 |
|
|
|
|
13,927 |
|
|
|
Asset
impairment and estimated lease |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
termination and other closing costs |
|
|
3,620 |
|
|
|
|
650 |
|
|
|
|
4,684 |
|
|
|
|
1,626 |
|
|
|
Net loss
(gain) on disposal of property |
|
|
4 |
|
|
|
|
(1,781 |
) |
|
|
|
(181 |
) |
|
|
|
(1,756 |
) |
|
|
|
|
Total costs and
expenses |
|
|
29,259 |
|
|
|
|
26,612 |
|
|
|
|
80,114 |
|
|
|
|
86,306 |
|
|
(Loss) income from operations |
|
|
(3,749 |
) |
|
|
|
1,268 |
|
|
|
|
(3,020 |
) |
|
|
|
2,553 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other expense: |
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest
expense |
|
|
(210 |
) |
|
|
|
(218 |
) |
|
|
|
(613 |
) |
|
|
|
(641 |
) |
|
|
Interest
income |
|
|
--- |
|
|
|
|
2 |
|
|
|
|
2 |
|
|
|
|
7 |
|
|
|
Other
(expense) income, net |
|
|
(1 |
) |
|
|
|
1 |
|
|
|
|
--- |
|
|
|
|
1 |
|
|
|
|
|
Total other
expense |
|
|
(211 |
) |
|
|
|
(215 |
) |
|
|
|
(611 |
) |
|
|
|
(633 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(Loss) income before income taxes |
|
|
(3,960 |
) |
|
|
|
1,053 |
|
|
|
|
(3,631 |
) |
|
|
|
1,920 |
|
|
Income tax benefit (expense) |
|
|
1,582 |
|
|
|
|
(96 |
) |
|
|
|
1,515 |
|
|
|
|
(440 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net
(loss) income from continuing operations |
|
|
(2,378 |
) |
|
|
|
957 |
|
|
|
|
(2,116 |
) |
|
|
|
1,480 |
|
|
Net
(loss) income from discontinued operations, net of
tax |
|
|
(81 |
) |
|
|
|
(249 |
) |
|
|
|
627 |
|
|
|
|
79 |
|
|
Net
(loss) income |
$ |
|
(2,459 |
) |
|
$ |
|
708 |
|
|
$ |
|
(1,489 |
) |
|
$ |
|
1,559 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic net (loss) income per share - continuing
operations |
$ |
|
(0.34 |
) |
|
$ |
|
0.14 |
|
|
$ |
|
(0.30 |
) |
|
$ |
|
0.21 |
|
|
Basic net (loss) income per share - discontinued
operations |
$ |
|
(0.01 |
) |
|
$ |
|
(0.04 |
) |
|
$ |
|
0.09 |
|
|
$ |
|
0.01 |
|
|
Basic net (loss) income per share |
$ |
|
(0.35 |
) |
|
$ |
|
0.10 |
|
|
$ |
|
(0.21 |
) |
|
$ |
|
0.22 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Diluted net (loss) income per share - continuing
operations |
$ |
|
(0.34 |
) |
|
$ |
|
0.14 |
|
|
$ |
|
(0.30 |
) |
|
$ |
|
0.21 |
|
|
Diluted net (loss) income per share - discontinued
operations |
$ |
|
(0.01 |
) |
|
$ |
|
(0.04 |
) |
|
$ |
|
0.09 |
|
|
$ |
|
0.01 |
|
|
Diluted net (loss) income per share |
$ |
|
(0.35 |
) |
|
$ |
|
0.10 |
|
|
$ |
|
(0.21 |
) |
|
$ |
|
0.22 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average shares outstanding - basic |
|
|
6,950 |
|
|
|
|
6,945 |
|
|
|
|
6,949 |
|
|
|
|
7,008 |
|
|
Weighted average shares outstanding - diluted |
|
|
6,950 |
|
|
|
|
6,958 |
|
|
|
|
6,949 |
|
|
|
|
7,027 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
FAMOUS DAVE’S OF AMERICA, INC. AND
SUBSIDIARIES |
OPERATING RESULTS |
(unaudited) |
|
|
|
Three Months Ended |
|
Nine Months Ended |
|
|
October 2, |
|
September 27, |
|
October 2, |
|
September 27, |
|
|
2016 |
|
2015 |
2016 |
|
2015 |
Food and
beverage costs (1) |
|
31.0 |
% |
|
|
31.1 |
% |
|
|
31.1 |
% |
|
|
30.5 |
% |
Labor and
benefits costs (1) |
|
33.7 |
% |
|
|
35.7 |
% |
|
|
33.8 |
% |
|
|
33.5 |
% |
Operating
expenses(1) |
|
31.5 |
% |
|
|
29.8 |
% |
|
|
29.6 |
% |
|
|
28.7 |
% |
|
Restaurant
level operating margin(1)(3) |
|
3.8 |
% |
|
|
3.4 |
% |
|
|
5.5 |
% |
|
|
7.3 |
% |
|
|
|
|
|
|
|
|
|
Depreciation
& amortization (2) |
|
3.6 |
% |
|
|
3.8 |
% |
|
|
3.7 |
% |
|
|
3.8 |
% |
General and
administrative expenses (2) |
|
17.8 |
% |
|
|
14.9 |
% |
|
|
17.0 |
% |
|
|
15.7 |
% |
|
|
|
|
|
|
|
|
|
|
(Loss) income
from operations (2) |
|
(14.7 |
)% |
|
|
4.5 |
% |
|
|
(3.9 |
)% |
|
|
2.9 |
% |
|
|
|
|
|
|
|
|
|
|
Adjusted
income from operations (2) |
|
1.1 |
% |
|
|
0.5 |
% |
|
|
2.3 |
% |
|
|
2.7 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1)As a percentage of restaurant sales, net |
(2)As a percentage of total revenue |
(3)Restaurant level operating margin is equal to taking
restaurant sales, net less restaurant level food and beverage
costs, labor and benefit costs, and operating expenses. |
|
|
|
|
|
|
|
|
|
|
FAMOUS DAVE’S OF AMERICA, INC. AND
SUBSIDIARIES |
CONSOLIDATED BALANCE SHEETS |
(in thousands) |
(unaudited) |
|
|
|
|
|
October 2, |
|
|
January 3, |
|
|
|
|
2016 |
|
|
2016 |
|
ASSETS |
|
(Unaudited) |
|
|
|
Current assets: |
|
|
|
|
|
Cash and cash equivalents |
$ |
6,766 |
|
$ |
5,300 |
Restricted cash |
|
2,085 |
|
|
1,087 |
Accounts receivable, net |
|
4,362 |
|
|
4,677 |
Inventories |
|
1,886 |
|
|
2,070 |
Deferred tax assets |
|
196 |
|
|
181 |
Prepaid expenses and other current
assets |
|
3,238 |
|
|
1,671 |
Assets held for sale |
|
5 |
|
|
2,211 |
|
Total current
assets |
|
18,538 |
|
|
17,197 |
|
|
|
|
|
|
|
|
Property, equipment and
leasehold improvements, net |
|
25,929 |
|
|
32,491 |
|
|
|
|
|
|
|
|
Other assets: |
|
|
|
|
|
Intangible assets, net |
|
2,866 |
|
|
2,902 |
Deferred tax assets |
|
4,420 |
|
|
4,411 |
Other assets |
|
1,576 |
|
|
824 |
|
$ |
53,329 |
|
$ |
57,825 |
|
|
|
|
|
|
|
|
|
LIABILITIES
AND SHAREHOLDERS’ EQUITY |
Current
liabilities: |
|
|
|
|
|
Current portion of long-term debt and
financing lease obligation |
$ |
8,879 |
|
$ |
2,193 |
Line of credit |
|
1,855 |
|
|
--- |
Accounts payable |
|
5,599 |
|
|
5,685 |
Accrued compensation and
benefits |
|
1,571 |
|
|
1,390 |
Deferred tax liabilities |
|
100 |
|
|
101 |
Other current liabilities |
|
3,356 |
|
|
3,406 |
Liabilities held for sale |
|
--- |
|
|
1,747 |
|
Total current
liabilities |
|
21,360 |
|
|
14,522 |
|
|
|
|
|
|
|
|
Long-term
liabilities: |
|
|
|
|
|
Long-term debt, less current
portion |
|
--- |
|
|
10,200 |
Financing lease obligation, less
current portion |
|
2,422 |
|
|
2,757 |
Other liabilities |
|
8,721 |
|
|
8,285 |
|
Total
liabilities |
|
32,503 |
|
|
35,764 |
|
|
|
|
|
|
Shareholders’
equity: |
|
|
|
|
|
Common stock, $0.01 par value,
100,000 shares authorized, |
|
|
|
|
|
|
6,958 shares issued and outstanding
at |
|
|
|
|
|
|
October 2, 2016 and January 3, 2016,
respectively |
|
66 |
|
|
66 |
Retained earnings |
|
20,760 |
|
|
21,995 |
|
Total shareholders’
equity |
|
20,826 |
|
|
22,061 |
|
|
|
$ |
53,329 |
|
$ |
57,825 |
|
|
|
|
|
|
|
|
|
FAMOUS DAVE’S OF AMERICA, INC. AND
SUBSIDIARIES |
CONSOLIDATED STATEMENTS OF CASH
FLOWS |
(in thousands) |
(unaudited) |
|
|
|
|
|
Nine Months Ended |
|
|
|
|
October 2, |
|
September 27, |
|
|
|
|
2016 |
|
2015 |
Cash flows
from operating activities: |
|
|
|
|
|
Net (loss)
income from continuing operations |
$ |
|
(2,116 |
) |
|
|
1,480 |
|
|
Adjustments
to reconcile net (loss) income to cash flows provided by |
|
|
|
|
|
|
operations: |
|
|
|
|
|
|
Depreciation and amortization |
|
|
2,845 |
|
|
|
|
3,387 |
|
|
Asset
impairment and estimated lease termination and other closing costs
|
|
|
4,684 |
|
|
|
|
1,626 |
|
|
Net loss on
disposal of property |
|
|
(181 |
) |
|
|
|
(1,756 |
) |
|
Amortization of deferred financing costs |
|
|
43 |
|
|
|
|
57 |
|
|
Deferred
income taxes |
|
|
(25 |
) |
|
|
|
(349 |
) |
|
Deferred
rent |
|
|
520 |
|
|
|
|
656 |
|
|
Stock-based
compensation |
|
|
254 |
|
|
|
|
319 |
|
|
Tax benefit
for equity awards issued |
|
|
--- |
|
|
|
|
(153 |
) |
|
Changes in
operating assets and liabilities: |
|
|
|
|
|
|
|
Restricted
cash |
|
|
(1,199 |
) |
|
|
|
(91 |
) |
|
|
Accounts
receivable, net |
|
|
(193 |
) |
|
|
|
(904 |
) |
|
|
Inventories |
|
|
184 |
|
|
|
|
115 |
|
|
|
Prepaid
expenses and other current assets |
|
|
(1,571 |
) |
|
|
|
456 |
|
|
|
Deposits |
|
|
(277 |
) |
|
|
|
18 |
|
|
|
Accounts
payable |
|
|
(388 |
) |
|
|
|
(7 |
) |
|
|
Accrued
compensation and benefits |
|
|
39 |
|
|
|
|
(2,047 |
) |
|
|
Other
current liabilities |
|
|
(98 |
) |
|
|
|
(596 |
) |
|
|
Other
liabilities |
|
|
140 |
|
|
|
|
(39 |
) |
|
|
Long-term
deferred compensation |
|
|
--- |
|
|
|
|
(74 |
) |
|
|
|
Cash flows provided by
continuing operating activities |
|
|
2,661 |
|
|
|
|
2,098 |
|
|
|
|
Cash flows (used for)
provided by discontinued operating activities |
|
|
(839 |
) |
|
|
|
377 |
|
|
|
|
Cash flows provided by
operating activities |
|
|
1,822 |
|
|
|
|
2,475 |
|
|
|
|
|
|
|
|
|
|
Cash flows
used for investing activities: |
|
|
|
|
|
|
Proceeds
from the sale of assets |
|
|
1,053 |
|
|
|
|
5,341 |
|
|
Purchases
of property, equipment and leasehold improvements |
|
|
(540 |
) |
|
|
|
(3,093 |
) |
|
|
|
Cash flows provided by
continuing investing activities |
|
|
513 |
|
|
|
|
2,248 |
|
|
|
|
Cash flows provided by
(used for) discontinued investing activities |
|
|
1,150 |
|
|
|
|
(52 |
) |
|
|
|
Cash flows provided by
investing activities |
|
|
1,663 |
|
|
|
|
2,196 |
|
|
|
|
|
|
|
|
|
|
Cash flows
used for financing activities: |
|
|
|
|
|
|
Proceeds
from line of credit |
|
|
1,855 |
|
|
|
|
20,700 |
|
|
Payments on
line of credit |
|
|
--- |
|
|
|
|
(19,300 |
) |
|
Payments of
debt issuance costs |
|
|
(23 |
) |
|
|
|
(128 |
) |
|
Payments on
long-term debt and financing lease obligation |
|
|
(3,850 |
) |
|
|
|
(541 |
) |
|
Payments
from exercise of stock options |
|
|
(1 |
) |
|
|
|
--- |
|
|
Tax benefit
for equity awards issued |
|
|
--- |
|
|
|
|
153 |
|
|
Repurchase
of common stock |
|
|
--- |
|
|
|
|
(5,672 |
) |
|
|
|
Cash flows used for
financing activities |
|
|
(2,019 |
) |
|
|
|
(4,788 |
) |
|
|
|
|
|
|
|
|
|
Increase
(decrease) in cash and cash equivalents |
|
|
1,466 |
|
|
|
|
(117 |
) |
|
|
|
|
|
|
|
|
|
Cash and
cash equivalents, beginning of period |
|
|
5,300 |
|
|
|
|
2,133 |
|
|
|
|
|
|
|
|
|
|
Cash and
cash equivalents, end of period |
$ |
|
6,766 |
|
|
$ |
|
2,016 |
|
|
|
|
|
|
|
|
|
|
|
|
SUPPLEMENTAL SALES INFORMATION |
(unaudited) |
|
|
|
|
Three Months Ended |
|
Nine Months Ended |
|
|
|
October 2, |
|
September 27, |
|
October 2, |
|
September 27, |
|
|
|
2016 |
|
2015 |
|
2016 |
|
2015 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Restaurant
sales (in thousands): |
|
|
|
|
|
|
|
|
|
|
|
|
Company-Owned |
$ |
20,999 |
|
|
$ |
23,323 |
|
|
$ |
63,013 |
|
|
$ |
74,576 |
|
|
Franchise-Operated |
$ |
87,960 |
|
|
$ |
87,910 |
|
|
$ |
268,507 |
|
|
$ |
270,433 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total number
of restaurants: |
|
|
|
|
|
|
|
|
|
|
|
|
Company-Owned |
|
37 |
|
|
|
44 |
|
|
|
37 |
|
|
|
44 |
|
|
Franchise-Operated |
|
139 |
|
|
|
135 |
|
|
|
139 |
|
|
|
135 |
|
|
|
Total |
|
176 |
|
|
|
179 |
|
|
|
176 |
|
|
|
179 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total weighted
average weekly net sales (AWS): |
|
|
|
|
|
|
|
|
|
|
|
|
Company-Owned |
$ |
43,657 |
|
|
$ |
44,938 |
|
|
$ |
43,668 |
|
|
$ |
45,586 |
|
|
Franchise-Operated |
$ |
47,961 |
|
|
$ |
51,773 |
|
|
$ |
49,531 |
|
|
$ |
51,728 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating
weeks: |
|
|
|
|
|
|
|
|
|
|
|
|
Company-Owned |
|
481 |
|
|
|
519 |
|
|
|
1,443 |
|
|
|
1,636 |
|
|
Franchise-Operated |
|
1,834 |
|
|
|
1,698 |
|
|
|
5,421 |
|
|
|
5,228 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Company-Owned
comparable sales % |
|
(1.0 |
)% |
|
|
(9.1 |
)% |
|
|
(5.1 |
)% |
|
|
(8.9 |
)% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Franchise-Operated comparable sales % |
|
(3.8 |
)% |
|
|
(3.6 |
)% |
|
|
(4.4 |
)% |
|
|
(1.9 |
)% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total number
of comparable restaurants: |
|
|
|
|
|
|
|
|
|
|
|
|
Company-Owned |
|
37 |
|
|
|
35 |
|
|
|
37 |
|
|
|
35 |
|
|
Franchise-Operated |
|
120 |
|
|
|
117 |
|
|
|
113 |
|
|
|
116 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
FAMOUS DAVE'S OF AMERICA, INC. |
NON-GAAP RECONCILIATION |
(in thousands, except share and per share data) |
(unaudited) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended |
|
|
Nine Months Ended |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
October 2, |
|
|
September 27, |
|
|
October 2, |
|
|
September 27, |
|
|
|
|
|
2016 |
|
|
|
|
2015 |
|
|
|
|
2016 |
|
|
|
|
2015 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net (loss)
income from continuing operations |
$ |
|
(2,378 |
) |
|
$ |
|
957 |
|
|
$ |
|
(2,116 |
) |
|
$ |
|
1,480 |
|
Asset
impairment and estimated lease termination |
|
|
|
|
|
|
|
|
|
|
|
|
and other
closing costs |
|
|
3,620 |
|
|
|
|
650 |
|
|
|
|
4,684 |
|
|
|
|
1,626 |
|
Net loss
(gain) on disposal of equipment |
|
|
4 |
|
|
|
|
(1,781 |
) |
|
|
|
(181 |
) |
|
|
|
(1,756 |
) |
Settlement
agreement |
|
|
410 |
|
|
|
|
--- |
|
|
|
|
410 |
|
|
|
|
--- |
|
VP level
and above stock-based compensation |
|
|
|
|
|
|
|
|
|
|
|
|
recapture |
|
|
--- |
|
|
|
|
--- |
|
|
|
|
(126 |
) |
|
|
|
(45 |
) |
Tax impact
for adjustments |
|
|
(1,612 |
) |
|
|
|
103 |
|
|
|
|
(1,997 |
) |
|
|
|
40 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted
net income (loss) |
$ |
|
44 |
|
|
$ |
|
(71 |
) |
|
$ |
|
674 |
|
|
$ |
|
1,345 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-GAAP
adjusted income (loss) per share |
|
|
|
|
|
|
|
|
|
|
|
|
from
continuing operations per share: |
|
|
|
|
|
|
|
|
|
|
|
Basic
adjusted net income (loss) from continuing |
|
|
|
|
|
|
|
|
|
|
|
|
operation
per share |
$ |
|
0.01 |
|
|
$ |
|
(0.01 |
) |
|
$ |
|
0.10 |
|
|
$ |
|
0.19 |
|
Diluted
adjusted net income (loss) from continuing |
|
|
|
|
|
|
|
|
|
|
|
|
operation
per share |
$ |
|
0.01 |
|
|
$ |
|
(0.01 |
) |
|
$ |
|
0.10 |
|
|
$ |
|
0.19 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Shares used
to compute non-GAAP income per share: |
|
|
|
|
|
|
|
|
|
|
|
Weighted
average share outstanding - basic |
|
|
6,950 |
|
|
|
|
6,945 |
|
|
|
|
6,949 |
|
|
|
|
7,008 |
|
Weighted
average share outstanding - diluted |
|
|
6,950 |
|
|
|
|
6,958 |
|
|
|
|
6,949 |
|
|
|
|
7,027 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(Loss)
income from operations |
$ |
|
(3,749 |
) |
|
$ |
|
1,268 |
|
|
$ |
|
(3,020 |
) |
|
$ |
|
2,553 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-cash
items: |
|
|
|
|
|
|
|
|
|
|
|
Asset
impairment and estimated lease termination |
|
|
|
|
|
|
|
|
|
|
|
|
and other
closing costs |
|
|
3,620 |
|
|
|
|
650 |
|
|
|
|
4,684 |
|
|
|
|
1,626 |
|
Net loss
(gain) on disposal of equipment |
|
|
4 |
|
|
|
|
(1,781 |
) |
|
|
|
(181 |
) |
|
|
|
(1,756 |
) |
Settlement
agreement |
|
|
410 |
|
|
|
|
--- |
|
|
|
|
410 |
|
|
|
|
--- |
|
VP level
and above stock-based compensation |
|
|
|
|
|
|
|
|
|
|
|
|
recapture |
|
|
--- |
|
|
|
|
--- |
|
|
|
|
(126 |
) |
|
|
|
(45 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted
income from operations |
$ |
|
285 |
|
|
$ |
|
137 |
|
|
$ |
|
1,767 |
|
|
$ |
|
2,378 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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:
Dexter Newman– Chief Financial Officer
952-294-1300
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