Famous Dave’s of America reported record sales and earnings for its fiscal year ended December 31, 2000. Net income was within the Company’s estimated range at $2,112,000, or $0.22 per share compared to a loss of $6,610,000 or ($0.75) per share for the 1999 fiscal year. Fiscal 1999 results included an impairment reserve of $5,513,000, (equal to $0.62 per share in Fiscal 1999).
In a pre-release announcement dated January 3, 2001, Famous Dave’s reported that its revenues for the 2000 fiscal year were $70.1 million, a 47% increase over fiscal 1999. The increase in revenues was driven by a 5.3% increase in comparable restaurant sales, the full year impact of the six restaurants acquired and opened during of 1999 and seven new restaurants opened during 2000. Average weekly volume for fiscal 2000 was $44,271, a 30% increase over the prior year, reflecting development of higher volume restaurants as well as the successful conversion of the acquired restaurants. The Company had 33 owned and operated restaurants at the end of the year.
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The Company added seven franchise restaurants during the year bringing its year end total to nine. Additional commitments for 27 franchise restaurants are in place through signed area development agreements. Fees and royalties from franchise restaurants totaled $904,000 in the current year compared to $54,000 in 1999.
For the fourth quarter of 2000, the Company reported revenues of $17.7 million, an increase of 50% over the fourth quarter of 1999. Net income totaled $332,000, or $.03 per share compared to a loss of $625,000, or ($.07) per share for the comparable time period in 1999, excluding the impairment reserve.
“Fiscal 2000 was the first full year of implementation of our three-pronged growth strategy. Even though we have yet to realize the full potential of this program, we have had very favorable results in the early stages. Revenue growth at our company-owned and operated restaurants has been accompanied by an increase of 240 basis points in operating margin. Our franchising program is off to a tremendous start as evidenced by the signed development commitments and the continued interest from potential franchisees. The Company is also realizing licensing revenues as a result of the sale of our sauce and seasoning division and the execution of the agreement with Hormel for branded prepared meats. Hormel currently has the Famous Dave’s product in grocery stores across the country such as Winn Dixie, Giant, Wal-Mart, Cub Foods and Rainbow Foods,” said Martin O’Dowd, President and CEO of Famous Dave’s.
Looking forward, the Company anticipates that it will open six to eight new restaurants during 2001. Two of these are under construction in the Chicago area and are expected to open by March 31, 2001. In addition, 10-12 new franchise restaurants are expected to open before the end of the year. The first, in Omaha, Nebraska, opened on February 5. The Company anticipates a profitable 1st quarter with revenues of approximately $19 million. The company expects to finish the year with total revenues between $85 and 90 million with earning per share increasing over 50%.
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By GlobalDataFamous Dave’s of America, Inc. (Nasdaq: Dave) owns, operates and franchises barbeque restaurants and blues clubs. The company currently owns 33 locations and franchises an additional 10 units in Minnesota, Wisconsin, Illinois, Iowa, Nebraska, Maryland and Virginia. Its menu features award-winning barbecued and grilled meats, an ample selection of salads, side items, sandwiches and unique desserts.
Certain matters discussed within this press release, including statements regarding revenue and profit forecasts, new restaurant sites, restaurant openings and expansion plans, are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Although Famous Dave’s of America, Inc. believes the expectation 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 defer materially from Famous Dave’s expectation include financial performance, restaurant industry conditions, execution of restaurant development and construction programs, changes in local or national economic conditions, availability of financing and other risks detailed from time to time in the company’s SEC reports.
FAMOUS DAVE’S OF AMERICA, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS
FOR THE YEARS ENDED DECEMBER 31, 2000 AND JANUARY 2, 2000
(in thousands, except per share data)
2000 1999
———– ———–
Revenues, net $ 70,160 $ 47,629
———– ———–
Costs and expenses:
Food and beverage costs 22,611 16,081
Labor and benefits 19,686 13,286
Operating expenses 15,573 11,420
Depreciation and amortization 3,694 2,725
Pre-opening expenses 850 573
Impairment reserve on restaurants
and other assets 0 5,513
General and administrative 5,165 4,254
———– ———–
Total costs and expenses 67,579 53,852
———– ———–
Income (loss) from operations 2,581 (6,223)
Other income (expense):
Interest expense (1,246) (387)
Gain on sale of property 658 0
Other income 119 0
———– ———–
Total other income (expense) (469) (387)
———– ———–
Net income (loss) $ 2,112 $ (6,610)
=========== ===========
Basic net income (loss) per
common share $ 0.23 $ (0.75)
=========== ===========
Diluted net income (loss) per
common share $ 0.22 $ (0.75)
=========== ===========
Weighted average common shares
outstanding – basic 9,149 8,842
=========== ===========
Weighted average common shares
outstanding – diluted 9,745 8,842
=========== ===========
FAMOUS DAVE’S OF AMERICA, INC. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
December 31, 2000 AND January 2, 2000
(in thousands, except per share data)
2000 1999
———– ———–
ASSETS
Current assets:
Cash and cash equivalents $ 1,895 $ 1,712
Inventories 1,394 1,108
Prepaids and other current assets 1,657 1,249
———– ———–
Total current assets 4,946 4,069
Property, equipment and leasehold
improvements, net 45,982 38,742
Notes receivable, net of
current portion 832 0
Other assets:
Deposits 550 315
Debt issuance costs 583 200
———– ———–
$ 52,893 $ 43,326
=========== ===========
LIABILITIES AND SHAREHOLDERS’ EQUITY
Current liabilities:
Line of credit $ 544 $ 3,050
Current portion of long-term debt 886 0
Current portion of capital lease
obligations 420 1,026
Accounts payable 3,678 4,220
Accrued payroll and related taxes 1,102 807
Other current liabilities 2,709 2,136
———– ———–
Total current liabilities 9,339 11,239
Long-term debt, net of current portion 8,444 0
Financing lease obligation 4,500 4,500
Capital lease obligations, net of
current portion 203 577
Deferred gain, net of current portion 346 0
———– ———–
Total liabilities 22,832 16,316
———– ———–
Shareholders’ equity:
Common stock, $.01 par value, 100,000
shares authorized, 9,346 and 9,055
shares issued and outstanding 93 91
Additional paid-in capital 44,202 43,265
Accumulated deficit (14,234) (16,346)
———– ———–
Total shareholders’ equity 30,061 27,010
———– ———–
$ 52,893 $ 43,326
=========== ===========
FISCAL YEARS ENDED
December 31, January 2,
2000 2000
———– ———–
RESTAURANT REVENUES, NET 100.0% 100.0%
UNIT-LEVEL COSTS AND EXPENSES:
Food and beverage costs 32.7% 33.8%
Labor and benefits 28.5% 27.9%
Operating expenses 22.5% 24.0%
Depreciation and amortization 5.3% 5.7%
Pre-opening expenses 1.2% 1.2%
———– ———–
Total costs and expenses 90.2% 92.6%
———– ———–
INCOME FROM UNIT-LEVEL OPERATIONS 9.8% 7.4%
