Famous Dave’s of America reported record sales and earnings for its third fiscal quarter today, reporting a 50% increase in revenue and a 300% increase in earnings per share over the same period a year ago. Strong comparable sales increases of 8.5%, which continued a six-quarter streak of increases, combined with newly developed and acquired restaurants helped drive revenues to $19.0 million, an increase of $6.3 million over the same quarter a year ago. The new, higher volume units contributed to an increase in restaurant average weekly volume for the third quarter of 22% versus the third quarter of 1999.
Net income for the third quarter totaled $624,000, or $.06 per share compared to $137,000 or $.02 per share during the third quarter of 1999. Two new restaurants were opened during the third quarter, one in Lombard, Illinois and the other in North Riverside, Illinois.
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For the 39 weeks ended October 1, 2000, total revenue was $52.5 million, an increase of 47% over the first three quarters of 1999. Net income totaled $1.8 million, or $.18 per share compared to a loss of $472,000, or ($.05) per share for the comparable time period in 1999.
“In addition to strong revenue results, our margins have expanded dramatically in the past year. As a percentage of revenue, our store-level cash flow has increased over 200 basis points versus last year. An emerging franchising program is also showing promising results thus far this year,” said Martin O’Dowd, President and CEO of Famous Dave’s.
The Company completed the final conversion of the four restaurants acquired in the Washington D.C. and Baltimore areas at the end of last year. On average, these restaurants are realizing weekly volume that is nearly double the pre-conversion levels.
Looking forward, the Company anticipates that it will open three new restaurants during the 4th quarter. In addition, two new franchise restaurants are expected to open before the end of the year. The company expects to finish the year with total revenues between $68 and 70 million with earning per share in the $0.21 to $0.23 range.
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By GlobalDataFor 2001, preliminary plans call for 8 new company restaurants and 10-12 new franchise operated restaurants.
“We are very pleased with our revenue and profit results for this quarter and our year thus far. Results such as these ¶ confirm our expectation that fiscal 2000 will be record-breaking year for Famous Dave’s of America”, said O’Dowd.
Famous Dave’s of America, Inc. (NASDAQ:Dave) owns, operates and franchises barbeque restaurants and blues clubs. The company currently owns 30 locations and franchises an additional 7 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 new restaurant sites, restaurant openings and expansion plans, may be 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
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
Thirteen Weeks Ended Thirty-nine Weeks Ended
------------------------- -------------------------
October 1, October 3, October 1, October 3,
2000 1999 2000 1999
----------- ----------- ----------- -----------
(Unaudited) (Unaudited) (Unaudited) (Unaudited)
REVENUES, NET $18,994,000 $12,693,000 $52,452,000 $35,712,000
----------- ----------- ----------- -----------
COSTS AND EXPENSES:
Food and
beverage costs 6,076,000 4,123,000 17,132,000 12,067,000
Labor and
benefits 5,271,000 3,451,000 14,431,000 9,922,000
Operating
expenses 4,091,000 3,043,000 11,601,000 8,442,000
Depreciation
and amortization 928,000 725,000 2,700,000 2,027,000
Pre-opening
expenses 326,000 13,000 680,000 455,000
General and
administrative 1,422,000 1,024,000 3,955,000 3,057,000
----------- ----------- ----------- -----------
Total costs
and expenses 18,114,000 12,379,000 50,499,000 35,970,000
----------- ----------- ----------- -----------
INCOME (LOSS)
FROM OPERATIONS 880,000 314,000 1,953,000 (258,000)
----------- ----------- ----------- -----------
OTHER INCOME (EXPENSE):
Interest income 25,000 6,000 34,000 6,000
Interest expense (322,000) (197,000) (903,000) (261,000)
Other income 31,000 14,000 45,000 41,000
Gain on sale
of property 10,000 0 651,000 0
----------- ----------- ----------- -----------
(256,000) (177,000) (173,000) (214,000)
----------- ----------- ----------- -----------
NET INCOME
(LOSS) $ 624,000 $ 137,000 $ 1,780,000 $ (472,000)
=========== =========== =========== ===========
BASIC NET INCOME
(LOSS) PER COMMON
SHARE $ 0.07 $ 0.02 $ 0.20 $ (0.05)
=========== =========== =========== ===========
DILUTED NET INCOME
(LOSS) PER COMMON
SHARE $ 0.06 $ 0.02 $ 0.18 $ (0.05)
=========== =========== =========== ===========
WEIGHTED AVERAGE COMMON
SHARES OUTSTANDING -
BASIC 9,131,590 8,842,972 9,096,949 8,839,695
=========== =========== =========== ===========
WEIGHTED AVERAGE COMMON
SHARES OUTSTANDING -
DILUTED 9,962,304 8,842,972 9,635,386 8,839,695
=========== =========== =========== ===========
FAMOUS DAVE'S OF AMERICA, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
October 1, January 2,
2000 2000
------------ ------------
(Unaudited)
ASSETS
CURRENT ASSETS:
Cash and cash equivalents $ 2,252,000 $ 1,712,000
Inventories 1,249,000 1,108,000
Prepaids and other current assets 1,175,000 1,249,000
Current maturities of notes receivable 54,000 0
------------ ------------
Total current assets 4,730,000 4,069,000
PROPERTY, EQUIPMENT AND LEASEHOLD
IMPROVEMENTS, NET 43,295,000 38,742,000
NOTES RECEIVABLE NET OF CURRENT MATURITIES 853,000 0
OTHER ASSETS:
Deposits 366,000 315,000
Debt issuance costs, net 563,000 200,000
------------ ------------
$ 49,807,000 $ 43,326,000
============ ============
LIABILITIES AND SHAREHOLDERS' EQUITY
CURRENT LIABILITIES:
Accounts payable $ 2,463,000 $ 4,220,000
Accrued payroll and related taxes 965,000 807,000
Other current liabilities 2,266,000 2,136,000
Line of credit 544,000 3,050,000
Current portion of capital
lease obligations 462,000 1,026,000
Current portion of notes payable 809,000 0
------------ ------------
Total current liabilities 7,509,000 11,239,000
NOTES PAYABLE, NET OF CURRENT PORTION 8,031,000 0
FINANCING LEASE OBLIGATIONS 4,500,000 4,500,000
DEFERRED GAIN, NET OF CURRENT PORTION 355,000 0
CAPITAL LEASE OBLIGATIONS, NET OF CURRENT
PORTION 255,000 577,000
------------ ------------
Total liabilities 20,650,000 16,316,000
------------ ------------
COMMITMENTS AND CONTINGENCIES
SHAREHOLDERS' EQUITY:
Common stock, $.01 par value, 100,000,000
shares authorized, 9,178,593 and
9,055,139 shares issued and outstanding 93,000 91,000
Additional paid-in capital 43,631,000 43,265,000
Accumulated deficit (14,567,000) (16,346,000)
------------ ------------
Total shareholders' equity 29,157,000 27,010,000
------------ ------------
$ 49,807,000 $ 43,326,000
============ ============
FAMOUS DAVE'S OF AMERICA, INC.
Financial Condition and Results of Operations
RESULTS OF OPERATIONS
Our overall operating results expressed as a percentage of restaurant
revenues (which consist of restaurant, retail and ribfest revenues),
net were as follows:
Thirteen Weeks Ended Thirty-nine Weeks Ended
October 1, October 3, October 1, October 3,
2000 1999 2000 1999
(unaudited) (unaudited) (unaudited) (unaudited)
---------- --------- --------- ---------
RESTAURANT REVENUES, NET 100.0% 100.0% 100.0% 100.0%
---------- --------- --------- ---------
UNIT-LEVEL COSTS AND EXPENSES:
Food and beverage costs 32.4% 32.5% 33.0% 33.8%
Labor and benefits 28.1% 27.2% 27.8% 27.8%
Operating expenses 21.8% 24.0% 22.3% 23.6%
Depreciation and
amortization 4.7% 5.7% 4.9% 5.7%
Pre-opening expenses 1.7% 0.1% 1.3% 1.3%
---------- --------- --------- --------
Total costs and
expenses 88.7% 89.5% 89.3% 92.2%
---------- --------- --------- --------
INCOME FROM UNIT-LEVEL
OPERATIONS 11.3% 10.5% 10.7% 7.8%
