Market Overview

Famous Dave's of America, Inc. Reports Results for Second Quarter of Fiscal 2019

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MINNEAPOLIS, Aug. 12, 2019 (GLOBE NEWSWIRE) -- Famous Dave's of America, Inc. (NASDAQ:DAVE), an innovating owner and operator of barbeque restaurants, globally, today reported financial results for the second fiscal quarter ended June 30, 2019.

Second Quarter 2019 Highlights:

  • Company-owned same store net sales decreased 0.8%, driven by traffic decreases in Dine-In, partially offset by a 6.8% increase in To-Go same store net sales.
  • Domestic franchise-operated same store net sales increased 0.7% year-over-year. Franchise-operated system, including international units, increased by 0.5%.
  • Reacquired eight Famous Dave's franchise stores at attractive valuations, which are slated for upgrades and relaunches. 
  • Generated over $800,000 in operating cash flow.
  • Launched 2,300 square foot small-footprint restaurant in Tucson, Arizona through a Famous Dave's franchisee.
  • Approximately 102,000 downloads of loyalty app since it was launched in December 2018.

Highlights Subsequent to the Second Quarter 2019:

  • Reacquired five restaurants in Arizona and Kentucky from franchisees.
  • Announced agreement with Beyond Meat to add innovative and delicious non-meat items to the Famous Dave's menu. 

Executive Comments

Jeff Crivello, CEO, commented, "For the second time since 2011, our franchise community posted positive same store net sales, driven by a 0.7% increase from domestic franchisees, partially offset by a 5.8% decline from our international community.  During the first half of fiscal 2019, we have reinvested approximately $5.7 million into our system, including repurchasing franchise restaurants, and refreshes of company owned restaurants.  In addition, we refinanced our credit facility in preparation of our growth initiatives.  We have also begun the process to open new, small footprint restaurants in select markets."

Key Operating Metrics

                           
    Three Months Ended     Six Months Ended
 
    June 30, 2019   July 1, 2018     June 30, 2019
    July 1, 2018
 
Restaurant count:                          
Franchise-operated     107       135       107       135    
Company-owned     29       15       29       15    
Total     136       150       136       150    
Same store net restaurant sales %:                          
Franchise-operated, domestic     0.7   %   (1.4 ) %   0.6   %   (1.4 ) %
Franchise-operated, international(1)     (5.8 ) %   (17.8 ) %   (14.8 ) %   (9.3 ) %
Franchise-operated total     0.5   %   (2.0 ) %   0.2   %   (1.5 ) %
Company-owned     (0.8 ) %   1.2   %   1.0   %   3.2   %
Total     0.4   %   (1.6 ) %   0.3   %   (1.0 ) %
                           
(in thousands, expect per share data)                          
                           
System-wide restaurant sales(2)   $ 90,647     $ 97,262     $ 173,386     $ 184,429    
                           
Net income   $ 1,040     $ 1,392     $ 1,122     $ 2,390    
Adjusted net income(3)     1,439       1,701       2,060       2,653    
                           
Net income, per diluted share   $ 0.11     $ 0.16     $ 0.12     $ 0.29    
Adjusted net income, per diluted share(3)     0.16       0.19       0.22       0.33    
                           
Adjusted EBITDA(3)   $ 2,446     $ 2,700     $ 3,477     $ 4,494    

___________________________________
(1) International franchise comparable sales declines are primarily related to Puerto Rico, which is still yet to recover from the effects of recent hurricanes.
(2) System-wide restaurant sales include sales for all Company-owned and franchise-operated restaurants, as reported by franchisees. Restaurant sales for franchise-operated restaurants are not revenues of the Company and are not included in the Company's consolidated financial statements.
(3) Adjusted net income (loss) from continuing operations and adjusted EBITDA are non-GAAP measures. A reconciliation of all non-GAAP measures to the most directly comparable GAAP measure is included in the accompanying financial tables.  See "Non-GAAP Reconciliation."

Second Quarter 2019 Review

Total

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