-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: webmaster@www.sec.gov Originator-Key-Asymmetric: MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB MIC-Info: RSA-MD5,RSA, Fpugwu4LVi3Iq+7rNWOVLYicbcaV+cQemwjzIkr3ia7suHC+JpxhRg8ll/KltQMj Wb119Pdx0PJR2ew8aS/BsA== 0000950134-04-002869.txt : 20040303 0000950134-04-002869.hdr.sgml : 20040303 20040303163815 ACCESSION NUMBER: 0000950134-04-002869 CONFORMED SUBMISSION TYPE: 8-K PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 20040303 ITEM INFORMATION: ITEM INFORMATION: Financial statements and exhibits FILED AS OF DATE: 20040303 FILER: COMPANY DATA: COMPANY CONFORMED NAME: FAMOUS DAVES OF AMERICA INC CENTRAL INDEX KEY: 0001021270 STANDARD INDUSTRIAL CLASSIFICATION: RETAIL-EATING PLACES [5812] IRS NUMBER: 411782300 STATE OF INCORPORATION: MN FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 8-K SEC ACT: 1934 Act SEC FILE NUMBER: 000-21625 FILM NUMBER: 04646477 BUSINESS ADDRESS: STREET 1: 7657 ANAGRAM DR CITY: EDEN PRAIRIE STATE: MN ZIP: 55344 BUSINESS PHONE: 612-557-57 MAIL ADDRESS: STREET 1: 7657 ANAGRAM DR CITY: EDEN PRAIRIE STATE: MN ZIP: 55344 8-K 1 c83440e8vk.txt FORM 8-K SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 8-K CURRENT REPORT Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 Date of Report (Date of earliest event reported): March 3, 2004 FAMOUS DAVE'S OF AMERICA, INC. (Exact name of registrant as specified in its charter) Minnesota 0-21625 41-1782300 (State or other jurisdiction (Commission File Number) (IRS Employer of incorporation) Identification No.) 8091 Wallace Road, Eden Prairie, MN 55344 (Address of principal executive offices) (Zip Code) (952) 294-1300 (Registrant's telephone number, including area code) N/A (Former Name or Former Address, if Changed Since Last Report) Item 7. Financial Statements, Pro Forma Financial Information and Exhibits. (c) Exhibits 99.1 Famous Dave's of America, Inc. Press Release dated March 3, 2004. Item 12. Results of Operations and Financial Condition. The information in this Item is furnished to, but not filed with, the Securities and Exchange Commission (the "Commission") solely under Item 12 of Form 8-K, "Results of Operations and Financial Condition." On March 3, 2004, we issued a press release reporting the financial results for our fourth quarter and fiscal year ended December 28, 2003. A copy of the press release is furnished as Exhibit 99.1 to this report and is incorporated herein by reference. In addition to reporting a measure of our 2003 revenues that is in accordance with generally accepted accounting principles, this release also included a non-GAAP financial measure of our 2003 system-wide sales, which is a measure that includes sales from all restaurants, company-owned and franchise, operating under the Famous Dave's brand name. We believe that the measure of system-wide sales information is useful to investors because it gives a more accurate indication of the market penetration of the Famous Dave's brand. SIGNATURE Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized. FAMOUS DAVE'S OF AMERICA, INC. Date: March 3, 2004 By: /s/ Diana G. Purcel ------------------------------ Name: Diana G. Purcel Title: Vice President and Chief Financial Officer EX-99.1 3 c83440exv99w1.txt PRESS RELEASE EXHIBIT 99.1 FROM: Famous Dave's of America, Inc. 8091 Wallace Road Eden Prairie, Minnesota 55344 Diana Purcel -- VP and CFO (952) 294-1300 FOR IMMEDIATE RELEASE - --------------------- FAMOUS DAVE'S ANNOUNCES 2003 RESULTS Minneapolis, MN, March 3, 2004 - Famous Dave's of America, Inc. (Nasdaq: DAVE) today reported results for the fourth quarter and fiscal year ended December 28, 2003. Revenues for the fourth quarter of fiscal 2003 of approximately $22.8 million increased 6.0% over revenues for the fourth quarter of fiscal 2002. Comparable sales for company restaurants open year-round for 18 months or more decreased 4.0% for the quarter. For the fourth quarter of fiscal 2003, the company reported a net loss of approximately $777,000, or $0.06 per diluted share, compared to a net loss of approximately $228,000, or $0.02 per diluted share for the comparable period in the prior year. The results for the fourth quarter of 2003 include pre-tax non-recurring impairment and restructuring charges of approximately $764,000, or $0.04 per diluted share related to the closing of two stores in the Texas market. Year-to-date revenues of approximately $97.7 million increased 7.6% over 2002 revenues, while comparable sales declined 3.0%. System-wide sales for fiscal 2003 of approximately $187.2 million increased 24.6% over system-wide sales for the prior year. System-wide sales is a non-GAAP financial measure that includes sales of all restaurants, company-owned and franchise, operating under the Famous Dave's brand name. Management believes that system-wide sales information is useful to investors because it gives a more accurate indication of the market penetration of the Famous Dave's brand. For fiscal year 2003, the company reported a net loss of approximately $2.9 million, or $0.25 per diluted share, which includes pre-tax non-recurring charges of approximately $4.2 million, or $0.22 per diluted share, related to impairment and restructuring charges on five restaurant locations, two of which were subsequently sold and two of which were subsequently closed. In addition, fiscal 2003 results include pre-tax non-recurring charges of approximately $2.2 million, or $0.11 per diluted share, which reflects losses in the Isaac Hayes Blues clubs, as well as costs associated with our divestiture of those clubs. As previously reported, Famous Dave's has no further obligations relating to the Isaac Hayes clubs. In comparison, the company reported a net loss for fiscal 2002 of approximately $928,000, or $0.08 per diluted share. Fiscal 2002 results included losses of approximately $6.0 million, or $0.23 per diluted share, related to the Isaac Hayes clubs. "Fiscal 2003 was a year of culture building changes for our business, in organizational direction, in areas of focus, in our approach to marketing, and in leadership," said David Goronkin, President and CEO. "It was a year for us to get our financial house in order and to recommit our focus towards our core competencies, and our financial results reflect these changes," Goronkin continued. "For example, our 2003 results reflect our financial investment towards the basic repair and maintenance of many of our restaurants that had been neglected. During 2003 we also took charges as a result of decisions to divest our interest in the Isaac Hayes Blues Club operations, to eliminate the Ribs by Air segment and to wind-down our refrigerated products business. In addition, we took impairment charges on five restaurants, two of which we subsequently sold and two of which we elected to close. While the consolidated financial results of 2003 were disappointing, we are pleased with the progress in our restaurants and the operational improvements that our team has delivered." Goronkin concluded, "We have put fiscal 2003 behind us and are now firmly focused on fiscal 2004, which should prove to be a pivotal year for the company. We will be celebrating our tenth anniversary and we will open our 100th restaurant. The decisions that we made during fiscal 2003 are the foundation for a successful 2004 and beyond. All efforts will be aligned with ensuring operational integrity, brand development and financial performance. We will focus on our core company-operated restaurants and franchise growth. While we have no plans to open any new company-operated restaurants this year, we anticipate opening 20 to 25 new franchise-operated restaurants by the end of 2004." The company stated that the comparable sales decline in fiscal 2003 reflects the company's decision, during the third quarter, to eliminate routine discounting throughout its company restaurants. Although discounting during fiscal 2002 had increased restaurant traffic, the majority of the incremental sales derived had substantially lower margins. The company believes that the decision to discontinue discounting was the right decision to protect its brand for the long-term. Comparable-sales are expected to continue to remain soft, at a minimum, through the second quarter of 2004. The company is hosting a conference call tomorrow, Thursday, March 4, 2004 at 10:00 am CT to discuss its fiscal 2003 financial results, and invites all those interested in hearing management's discussion of the year to join the conference call by dialing (800) 374-1553. A replay will be available for one week following the call by dialing (800) 642-1687; conference ID 4888548. Participants may also access a live webcast of the discussion through the Investor Relations section of Famous Dave's web site at www.famousdaves.com. Contact information: Diana Purcel (952) 294-1300, or diana.purcel@famousdaves.com. Famous Dave's of America, Inc. (NASDAQ:DAVE) develops, owns, operates and franchises barbeque restaurants. The company currently owns 38 locations and franchises 54 additional units in 23 states and has signed development agreements for an additional 151 franchise locations. Its menu features award-winning barbequed and grilled meats, an ample selection of salads, side items, sandwiches and unique desserts. 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 company's actual results to differ materially from expected results. 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 differ materially from Famous Dave's 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 company's SEC reports. FAMOUS DAVE'S OF AMERICA, INC. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF OPERATIONS For the Year Ended December 28, 2003 and December 29, 2002 (in thousands, except per share and shares outstanding)
December 28, 2003 December 29, 2002 ------------------- ---------------- Revenues: Restaurant revenues, net $ 91,500 $ 86,378 Franchising royalty revenue 4,567 3,027 Franchise fee revenue 1,139 1,205 Licensing and other revenue 534 210 ----------------- ---------------- Total revenues 97,740 90,820 Costs and expenses: Food and beverage costs 28,014 27,355 Labor and benefits 27,586 25,252 Operating expenses 23,376 20,009 Total depreciation and amortization 4,840 4,630 Impairments and restructuring charges 4,238 --- Pre-opening expenses 543 1,040 General and administrative 9,336 8,064 ----------------- ---------------- Total costs and expenses 97,933 86,350 Income (loss) from operations (193) 4,470 Other income (expense): Interest expense, net (1,661) (1,038) Gain on sale of assets 112 549 Other expense, net (779) (126) Equity in losses of investment in unconsolidate affiliate (2,155) (5,994) ----------------- ---------------- Total other expense (4,483) (6,609) Loss before taxes (4,676) (2,139) Income tax benefit 1,778 1,211 ----------------- ---------------- Net loss $ (2,898) $ (928) ================= ================ Basic and diluted net loss per common share $ (0.25) $ (0.08) Weighted average common shares outstanding - basic and diluted 11,771,584 11,334,997
UNIT-LEVEL COSTS AND EXPENSES AS A % OF NET RESTAURANT REVENUE -------------------------------------------------------------- YEAR ENDED: DECEMBER 28, 2003 DECEMBER 29, 2002 ----------- ----------------- ------------------ Food and beverage costs 30.6% 31.7% Labor and benefits 29.8% 29.2% Operating expenses 25.5% 23.2% Depreciation and amortization 5.0% 5.0% ----------------- ------------------ Total costs and expenses 90.9% 89.1% Income from unit-level operations 9.1% 10.9%
SUPPLEMENTAL SALES INFORMATION ----------------------------------------------------------------------------------------------- YEAR ENDED: DECEMBER 28, 2003 DECEMBER 29, 2002 ----------- ---------------- ----------------- Weighted average weekly net sales, company-operated $ 42,491 $ 45,783 Weighted average weekly net sales, franchise-operated $ 47,400 $ 46,642 System-wide net sales $187,153,000 $150,231,000 Comparable net sales, company-operated (3.0%) (0.3%) Total number of units, company-operated 38 40 Total number of units, franchise-operated 54 33
FAMOUS DAVE'S OF AMERICA, INC. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF OPERATIONS For the Quarter Ended December 28, 2003 and December 29, 2002 (in thousands, except per share and shares outstanding)
DECEMBER 28, 2003 DECEMBER 29, 2002 ----------------- ---------------- Revenues: Restaurant revenues, net $ 20,734 $ 20,466 Franchising royalty revenue 1,332 773 Franchise fee revenue 384 265 Licensing and other revenue 372 35 ----------------- ---------------- Total revenues 22,822 21,539 Costs and expenses: Food and beverage costs 6,607 6,338 Labor and benefits 6,571 6,396 Operating expenses 5,885 5,111 Total depreciation and amortization 1,156 1,197 Impairments and restructuring charges 764 --- Pre-opening expenses --- 328 General and administrative 2,551 2,147 ----------------- ---------------- Total costs and expenses 23,534 21,517 Income (loss) from operations (712) 22 Other income (expense): Interest expense, net (456) (281) Gain (loss) on sale of assets 82 (11) Other expense, net (114) (182) Equity in losses of investment in unconsolidate affiliate --- (540) ----------------- ---------------- Total other expense (488) (1,014) Loss before taxes (1,200) (992) Income tax benefit 423 764 ----------------- ---------------- Net loss $ (777) $ (228) ================= ================ Basic and diluted net loss per common share $ (0.06) $ (0.02) Weighted average common shares outstanding - basic and diluted 12,137,324 11,388,295
UNIT-LEVEL COSTS AND EXPENSES AS A % OF NET RESTAURANT REVENUE -------------------------------------------------------------- QUARTER ENDED: DECEMBER 28, 2003 DECEMBER 29, 2002 -------------- ------------------ ----------------- Food and beverage costs 31.9% 31.0% Labor and benefits 30.3% 31.3% Operating expenses 28.1% 25.0% Depreciation and amortization 5.2% 5.5% ---------------- ------------------ Total costs and expenses 95.5% 92.8% Income from unit-level operations 4.5% 7.2%
SUPPLEMENTAL SALES INFORMATION --------------------------------------------------------------------------------------------- QUARTER ENDED: DECEMBER 28, 2003 DECEMBER 29, 2002 -------------- ----------------- ---------------- Weighted average weekly net sales, company-operated $ 39,121 $ 39,973 Weighted average weekly net sales, franchise-operated $ 45,744 $ 40,193 System-wide net sales $ 48,180,000 $ 36,503,000 Comparable net sales, company-operated (4.0%) (1.4%) Total number of units, company-operated 38 40 Total number of units, franchise-operated 54 33
FAMOUS DAVE'S OF AMERICA, INC. AND SUBSIDIARIES CONSOLIDATED BALANCE SHEETS For the Year Ended December 28, 2003 and December 29, 2002 (in thousands)
DECEMBER 28, 2003 DECEMBER 29, 2002 ----------------- ----------------- ASSETS Current assets $ 16,350 $ 13,550 Property, equipment and leasehold improvements, net 47,147 51,861 Other assets 10,270 9,406 ---------------- ----------------- TOTAL ASSETS $ 73,767 $ 74,817 ================ ================= LIABILITIES AND SHAREHOLDERS' EQUITY Current liabilities $ 7,309 $ 7,781 Long-term obligations 19,586 19,744 Shareholders' equity 46,872 47,292 ---------------- ----------------- TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY $ 73,767 $ 74,817 ================ =================
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