MINNEAPOLIS, April 24, 2013 (GLOBE NEWSWIRE) -- Famous Dave's of America, Inc. (Nasdaq:DAVE) today reported financial results for its first quarter of fiscal 2013.
Highlights for the first quarter of 2013 as compared to the first quarter of 2012 include:
- Revenue decreased to $36.6 million from $37.5 million;
- Comparable restaurant sales for Company-owned restaurants open 24 months or more decreased by 1.8% compared to a decrease of 1.6% for the first quarter of 2012, and reflected the shift in timing of Easter from the second quarter 2012 to the first quarter of 2013;
- Cash flows provided by operations were $3.9 million in the first quarter of 2013, compared to cash flows used for operations of $33,000 in the first quarter of fiscal 2012;
- Comparable restaurant sales performance exceeded industry average, according to Black Box Intelligence, or BBI, for the first time in 5 quarters;
- Comparable restaurant sales for franchise-operated restaurants decreased 6.1% compared to a decrease of 0.1% for the first quarter of 2012;
- Franchise royalty revenue decreased to $4.1 million from $4.4 million, primarily reflecting the comparable sales decrease, partially offset by the net increase of two additional franchise locations since the first quarter of 2012;
- General and administrative expenses increased to $5.0 million for the first quarter of 2013 primarily reflecting a $325,000 increase in salary, accrued bonus, taxes and stock-based compensation due to the reorganized CEO and COO positions, and approximately $135,000 of legal and other costs incurred related to board activity;
- Diluted net income per share was $0.01, compared to $0.11 in 2012, the decrease primarily reflecting the comparable sales decrease in franchise royalty revenue, decreased franchise fees, the shift in the timing of Easter, a shift in the timing of media spend from the second quarter of 2012 to the first quarter of 2013 and an increase in general and administrative expenses;
- Adjusted EBITDA was approximately $1.9 million, compared to $3.0 million for the first quarter of 2012;
- Long-term debt was reduced, including our line of credit balance, by approximately 15% during the first quarter of 2013.
John Gilbert, CEO, commented, "Six months ago when I joined Famous Dave's as CEO, I stated that we would make same store sales our first priority, and they remain our top priority. Our first quarter sales, royalties and franchise fee results were disappointing, which led to poor EBITDA and EPS results. Company-owned restaurants performed slightly better than the industry, according to BBI. Over the past six months, we've developed a strategic framework for performance improvement, tested a number of smart, innovative tactics that have proven successful, and launched the best of these tactics in our company restaurants. As the franchisor, we occasionally get ahead of our franchisees in the testing and launching of new initiatives, and while we launched these new sales drivers in our corporate restaurants during the quarter, the bulk of our franchisees did not add these tactics until the second quarter. This is reflected in the four point sales gap between company-owned and franchise-operated sales performance.