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8-K - FORM 8-K - BBQ HOLDINGS, INC. | c63335e8vk.htm |
Exhibit 99.1
Contact:
|
Diana G. Purcel Chief Financial Officer 952-294-1300 |
Famous Daves Reports Full Year Results of $0.82 per share
Includes one-time net gain of $0.15 per share
Includes one-time net gain of $0.15 per share
MINNEAPOLIS, March 2, 2011 Famous Daves of America, Inc. (NASDAQ: DAVE) today announced
revenue of $36.2 million and net income of $517,000, or $0.06 per diluted share, for its fiscal
fourth quarter ended January 2, 2011. These results compare to revenue of $32.6 million and net
income of $774,000, or $0.08 per diluted share for the comparable period in the prior year which
included one additional fiscal week equal to $0.05 per diluted share. For the full year ended
January 2, 2011, the company reported net income of $7.2 million, or $0.82 per diluted share, on
total revenue of approximately $148.3 million, as compared with net income of $5.7 million, or
$0.62 per diluted share, on total revenue of approximately $136.0 million for fiscal 2009.
Im proud of the solid results that our organization, led by operations, delivered in 2010, said
Christopher ODonnell, president and CEO of Famous Daves of America. However, as we enter 2011,
with strong momentum and confidence that business conditions are beginning to improve, we remain
cautious about the rising price environment and the potential impact it could have on consumer
confidence and restaurant-level margins.
Fiscal 2010s results include one-time non-cash gains of approximately $2.0 million or $0.15 per
diluted share related to the acquisition of seven restaurants in New York and New Jersey and a gain
on the termination of the Marietta, Georgia lease, partially offset by lease termination costs for
a company-owned location closed during the fourth quarter. In addition to the 53rd
week, fiscal 2009s fourth quarter results included approximately $0.02 per diluted share related
to acquisition costs for the New York/New Jersey restaurants as well as operational costs for
closed restaurants. Fiscal 2009s full year results reflect approximately $0.06 of net charges for
asset impairments, lease terminations, other closing costs, acquisition costs, and early debt
retirement costs. These charges were partially offset by the $0.05 per diluted share contributed
by the additional fiscal week.
Fiscal 2010 comparable sales for company-owned restaurants open for 24 months or more increased 3.3
percent for the fourth quarter, and increased 0.7 percent for the full year period. Comparable
sales for franchise-operated restaurants declined 0.8 percent for both the fourth quarter and the
full year period.
Sales results for company-owned restaurants reflected a gradual improvement in consumer spending,
contributing to positive increases in all revenue levers: dine-in, to-go and catering. Comparable
sales increases reflected the impact of weighted average price increases of approximately 1.2
percent. Off-premise sales for fiscal 2010, including to-go and catering, totaled 31.0 percent of
sales compared to 31.1 percent for fiscal 2009.
Franchise royalty revenue for the fourth quarter of 2010 totaled $3.7 million, compared to $4.1
million for the comparable period in 2009. The decrease in royalty revenue primarily reflects the
impact of lost royalties from eight New York and New Jersey locations, seven of which were
purchased by the company in March of this year, as well as the comparable sales decrease of 0.8
percent. Franchise royalty revenue for fiscal 2010 totaled $15.9 million, compared to $16.9
million for fiscal 2009. The decrease in franchise royalty revenue again reflected the impact of
lost royalties from the New York and New Jersey restaurant acquisition, as well as a decrease of approximately 0.8 percent in comparable sales.
Stock-based and Board of Directors Cash Compensation and Common Share Repurchase
Earnings results for the fourth quarter of 2010 included approximately $327,000 or $0.02 per
diluted share, in compensation expense related to the companys stock-based incentive programs and
board of directors cash compensation, as compared to approximately $221,000 or $0.02 per diluted
share, for the prior year comparable period. Stock-based compensation expense and board of
directors cash compensation expense for the full year ended January 2, 2011 was approximately $1.3
million or $0.10 per diluted share, compared to approximately $832,000 or $0.06 per diluted share
for the prior year comparable period. The year-over-year increase is primarily due to a higher
stock price.
During fiscal 2010, the company completed a 1,000,000 share buyback authorization. In the fourth
quarter, we announced another share buyback authorization, under which we repurchased 174,100
shares of common stock, at an average price of $10.33 per share, excluding commissions, for a total
of approximately $1.8 million. During fiscal 2010, the company repurchased approximately 1,067,000
shares of common stock at an average price of $8.18 per share, excluding commissions, for a total
of $8.7 million.
Marketing and Development
Development and marketing highlights during the quarter included a limited time offer called
Ribzilla, which consisted of a beef short rib prepared as an entrée or sandwich, and also
featured a bleu cheese wedge salad and cherry cobbler. Also included in this offering was a
special beer pairing with Samuel Adams® Seasonals. Our new menu launched in early 2011,
and contains several new items including a new Citrus Grill section which has a number of entrees
less than 600 calories, paired with a side of broccoli and grilled pineapple steaks.
During the fourth quarter of fiscal 2010, five franchise-operated restaurants opened in Peoria,
Illinois, Philadelphia, Pennsylvania, Orange, California, Lahaina (Maui), Hawaii, and Aurora,
Colorado. One franchise-operated restaurant closed in Champagne, Illinois and one company-owned
location closed in Palatine, Illinois. Additionally, during the fourth quarter, the company
entered into an Area Development Agreement for three units in Indianapolis. Famous Daves ended
the quarter with 182 restaurants, including 52 company-owned restaurants and 130 franchise-operated
restaurants, located in 37 states. Subsequent to year end, a franchise partner closed a location in
Omaha, Nebraska and another franchise partner closed a location in Pensacola, Florida.
Outlook
During 2011, we will continue to focus on improving revenue and earnings, said ODonnell. We
will grow by opening new restaurants and adding new franchise partners to the system, and will
strengthen our brand through concept evolution, as well as continued investments in infrastructure,
systems and processes.
During 2011, we expect to open approximately 10 12 new restaurants in total. We plan to spend
approximately $5.5 million on capital expenditures in 2011 for one new company-owned restaurant,
remodels and maintenance for existing restaurants, and various infrastructure projects.
Conference Call
The company will host a conference call tomorrow, March 3, 2011, at 10:00 a.m. Central Time to
discuss its fourth quarter and full-year 2010 financial results. A live webcast of the discussion
will be available through the Investor Relations section of Famous Daves web site at
www.famousdaves.com.
About Famous Daves
Famous Daves of America, Inc. develops, owns, operates and franchises barbeque restaurants. As of
today, the company owns 52 locations and franchises 128 additional locations in 37 states. Its menu
features award-winning barbequed and grilled meats, an ample selection of salads, side items,
sandwiches, and unique desserts.
FAMOUS DAVES OF AMERICA, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS
(in thousands, except share and per share data)
(unaudited)
CONSOLIDATED STATEMENTS OF OPERATIONS
(in thousands, except share and per share data)
(unaudited)
Three Months Ended | Twelve Months Ended | |||||||||||||||
January 2, | January 3, | January 2, | January 3, | |||||||||||||
2011 | 2010 | 2011 | 2010 | |||||||||||||
Revenue: |
||||||||||||||||
Restaurant sales, net |
$ | 32,235 | $ | 28,334 | $ | 131,154 | $ | 117,934 | ||||||||
Franchise royalty revenue |
3,694 | 4,061 | 15,902 | 16,912 | ||||||||||||
Franchise fee revenue |
110 | 45 | 345 | 200 | ||||||||||||
Licensing and other revenue |
178 | 161 | 867 | 972 | ||||||||||||
Total revenue |
36,217 | 32,601 | 148,268 | 136,018 | ||||||||||||
Costs and expenses: |
||||||||||||||||
Food and beverage costs |
9,633 | 8,443 | 38,754 | 35,489 | ||||||||||||
Labor and benefits costs |
10,135 | 9,159 | 41,352 | 37,016 | ||||||||||||
Operating expenses |
9,388 | 7,995 | 36,107 | 31,487 | ||||||||||||
Depreciation and amortization |
1,477 | 1,357 | 5,547 | 5,191 | ||||||||||||
Asset impairment and estimated
lease termination and other
closing costs |
142 | 99 | 74 | 218 | ||||||||||||
General and administrative
expenses |
4,412 | 4,024 | 16,165 | 16,000 | ||||||||||||
Pre-opening expenses |
| | 300 | | ||||||||||||
Gain on acquisition, net of |
||||||||||||||||
acquisition costs |
| 79 | (2,036 | ) | 79 | |||||||||||
Net loss on disposal of property |
2 | 11 | 22 | 24 | ||||||||||||
Total costs and expenses |
35,189 | 31,167 | 136,285 | 125,504 | ||||||||||||
Income from operations |
1,028 | 1,434 | 11,983 | 10,514 | ||||||||||||
Other expense: |
||||||||||||||||
Loss on early extinguishment of
debt |
| (20 | ) | | (509 | ) | ||||||||||
Interest expense |
(340 | ) | (266 | ) | (1,140 | ) | (1,443 | ) | ||||||||
Interest income |
93 | 36 | 171 | 129 | ||||||||||||
Other income (expense), net |
12 | | | (1 | ) | |||||||||||
Total other expense |
(235 | ) | (250 | ) | (969 | ) | (1,824 | ) | ||||||||
Income before income taxes |
793 | 1,184 | 11,014 | 8,690 | ||||||||||||
Income tax expense |
(276 | ) | (410 | ) | (3,796 | ) | (2,989 | ) | ||||||||
Net income |
$ | 517 | $ | 774 | $ | 7,218 | $ | 5,701 | ||||||||
Basic net income per
common share |
$ | 0.06 | $ | 0.08 | $ | 0.84 | $ | 0.63 | ||||||||
Diluted net income per
common share |
$ | 0.06 | $ | 0.08 | $ | 0.82 | $ | 0.62 | ||||||||
Weighted average common shares
outstanding basic |
8,335,000 | 9,143,000 | 8,620,000 | 9,114,000 | ||||||||||||
Weighted average common shares
outstanding diluted |
8,535,000 | 9,292,000 | 8,784,000 | 9,211,000 | ||||||||||||
FAMOUS DAVES OF AMERICA, INC. AND SUBSIDIARIES
OPERATING RESULTS
(unaudited)
OPERATING RESULTS
(unaudited)
Three Months Ended | Twelve Months Ended | |||||||||||||||
January 2, | January 3, | January 2, | January 3, | |||||||||||||
2011 | 2010 | 2011 | 2010 | |||||||||||||
Food and beverage costs (1) |
29.9 | % | 29.8 | % | 29.5 | % | 30.1 | % | ||||||||
Labor and benefits (1) |
31.4 | % | 32.3 | % | 31.5 | % | 31.4 | % | ||||||||
Operating expenses (1) |
29.1 | % | 28.2 | % | 27.5 | % | 26.7 | % | ||||||||
Depreciation & amortization
(restaurant level) (1) |
4.1 | % | 4.2 | % | 3.8 | % | 3.9 | % | ||||||||
Depreciation & amortization
(corporate level) (2) |
0.5 | % | 0.5 | % | 0.4 | % | 0.4 | % | ||||||||
General and administrative expenses (2) |
12.2 | % | 12.3 | % | 10.9 | % | 11.8 | % | ||||||||
Asset impairment and estimated lease termination
and other closing costs (1) |
0.4 | % | 0.3 | % | 0.1 | % | 0.2 | % | ||||||||
Pre-opening expenses and net
loss on disposal of property (1) |
| | 0.2 | % | | |||||||||||
Gain on acquisition, net of acquisition costs(1)(3) |
| 0.3 | % | (1.6 | %) | 0.1 | % | |||||||||
Total costs and expenses (2) |
97.2 | % | 95.6 | % | 91.9 | % | 92.3 | % | ||||||||
Income from operations (2) |
2.8 | % | 4.4 | % | 8.1 | % | 7.7 | % |
(1) | As a percentage of restaurant sales, net | |
(2) | As a percentage of total revenue | |
(3) | Acquisition costs incurred in 2009 were prior to the completion of an acquisition in fiscal 2010. |
FAMOUS DAVES OF AMERICA, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
(unaudited)
CONDENSED CONSOLIDATED BALANCE SHEETS
(unaudited)
January 2, | January 3, | |||||||
(in thousands) | 2011 | 2010 | ||||||
ASSETS |
||||||||
Cash and cash equivalents |
$ | 2,654 | $ | 2,996 | ||||
Other current assets |
8,593 | 9,486 | ||||||
Property, equipment and leasehold improvements, net |
61,550 | 54,818 | ||||||
Other assets |
3,332 | 1,081 | ||||||
Total assets |
$ | 76,129 | $ | 68,381 | ||||
LIABILITIES AND SHAREHOLDERS EQUITY |
||||||||
Current liabilities |
$ | 13,854 | $ | 12,464 | ||||
Line of credit |
13,000 | 13,500 | ||||||
Other long-term obligations |
16,371 | 9,423 | ||||||
Shareholders equity |
32,904 | 32,994 | ||||||
Total liabilities and shareholders equity |
$ | 76,129 | $ | 68,381 | ||||
FAMOUS DAVES OF AMERICA, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(unaudited)
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(unaudited)
Twelve Months Ended | ||||||||
January 2, | January 3, | |||||||
(in thousands) | 2011 | 2010 | ||||||
Cash flows provided by operating activities |
$ | 13,884 | $ | 14,521 | ||||
Cash flows used for investing activities |
(11,754 | ) | (1,930 | ) | ||||
Cash flows used for financing activities |
(2,472 | ) | (11,282 | ) | ||||
(Decrease) increase in cash and cash equivalents |
$ | (342 | ) | $ | 1,309 | |||
SUPPLEMENTAL SALES INFORMATION
(unaudited)
(unaudited)
Three Months Ended | Twelve Months Ended | |||||||||||||||
January 2, | January 3, | January 2, | January 3, | |||||||||||||
2011 | 2010 | 2011 | 2010 | |||||||||||||
Restaurant sales (in thousands): |
||||||||||||||||
Company-Owned |
$ | 32,235 | $ | 28,334 | $ | 131,154 | $ | 117,934 | ||||||||
Franchise-Operated |
$ | 79,209 | $ | 87,703 | $ | 340,454 | $ | 358,696 | ||||||||
Total number of restaurants: |
||||||||||||||||
Company-Owned |
52 | 45 | 52 | 45 | ||||||||||||
Franchise-Operated |
130 | 132 | 130 | 132 | ||||||||||||
Total |
182 | 177 | 182 | 177 | ||||||||||||
Total weighted average weekly net sales (AWS): |
||||||||||||||||
Company-Owned |
$ | 47,058 | $ | 44,692 | $ | 49,187 | $ | 48,197 | ||||||||
Franchise-Operated |
$ | 48,417 | $ | 48,001 | $ | 52,631 | $ | 53,016 | ||||||||
AWS 2005 and Post 2005: (1) |
||||||||||||||||
Company-Owned |
$ | 52,138 | $ | 51,784 | $ | 55,623 | $ | 57,027 | ||||||||
Franchise-Operated |
$ | 51,559 | $ | 51,943 | $ | 56,322 | $ | 57,890 | ||||||||
AWS Pre 2005: (1) |
||||||||||||||||
Company-Owned |
$ | 43,950 | $ | 42,135 | $ | 45,628 | $ | 45,085 | ||||||||
Franchise-Operated |
$ | 42,515 | $ | 41,687 | $ | 46,287 | $ | 45,885 | ||||||||
Operating Weeks: |
||||||||||||||||
Company-Owned |
685 | 634 | 2,654 | 2,441 | ||||||||||||
Franchise-Operated |
1,632 | 1,824 | 6,458 | 6,758 | ||||||||||||
Comparable net sales: (2) |
||||||||||||||||
Company-Owned |
3.3 | % | (3.4 | %) | 0.7 | % | (6.3 | %) | ||||||||
Franchise-Operated |
(0.8 | %) | (8.5 | %) | (0.8 | %) | (8.5 | %) | ||||||||
Total number of comparable restaurants: |
||||||||||||||||
Company-Owned |
42 | 38 | 40 | 37 | ||||||||||||
Franchise-Operated |
104 | 100 | 94 | 90 |
(1) | Provides further delineation of AWS for restaurants opened during the pre-fiscal 2005, and restaurants opened during the post-fiscal 2005, timeframes. | |
(2) | Comparable data for the three and twelve months ended January 3, 2010 based on a 52 week comparison. |
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 companys actual results to differ materially from expected results. Although
Famous Daves 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 Daves
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 companys SEC reports.