Famous Dave's of America Inc. (DAVE) filed Quarterly Report for the period ended 2009-09-27.
Famous Dave's owns operates and franchises barbeque restaurants and blues clubs. The company currently owns locations and franchises locations in Minnesota Wisconsin Illinois Iowa Nebraska Utah Maryland and Virginia and has signed development agreements for an additional franchised locations. Its menu features award-winning barbecued and grilled meats an ample selection of salads side items sandwiches and unique desserts. (Press Release) Famous Dave's Of America Inc. has a market cap of $56.1 million; its shares were traded at around $6.1 with a P/E ratio of 10.4 and P/S ratio of 0.4. Famous Dave's Of America Inc. had an annual average earning growth of 22.6% over the past 5 years.
Highlight of Business Operations:
Total revenue of approximately $33.3 million for the third quarter of fiscal 2009 was an approximate 5.1% decrease from revenue of approximately $35.1 million for the comparable quarter in fiscal 2008. For the nine months ended September 27, 2009, total revenue of approximately $103.4 million decreased approximately $4.2 million, or 3.9%, from revenue of approximately $107.6 million for the nine months ended September 28, 2008. This decrease reflects a 3.9% decrease in company-owned restaurant sales and a 2.6% decrease in franchise royalty revenue.
Franchise-related revenue consists of royalty revenue and franchise fees, which include initial franchise fees and area development fees. Franchise-related revenue was approximately $4.3 million for the third quarter of 2009, compared to $4.5 million, for the same period in 2008. Franchise royalty revenue was down 2.8% compared to the prior year, reflecting 11 new franchise restaurants, net of 3 closures, since the third quarter of 2008, and a comparable sales decrease of 9.5%. Two new franchise restaurants opened during the third quarter of 2009, Thousand Oaks, California, which was a conversion of an Applebee’s, and Amarillo, Texas. Despite the challenging economic environment, these new restaurants had average opening weekly sales of approximately $88,000. Franchise-related revenue was approximately $13.0 million for the nine months ended September 27, 2009 compared to approximately $13.7 million for the nine months ended September 28, 2008, primarily reflecting a year-over-year decrease in royalty revenue of 2.6% for the nine month timeframe. There were 131 franchise-operated restaurants opened at September 27, 2009 compared to 123 franchise-operated restaurants at September 28, 2008.
Depreciation and amortization expense for the third quarter of 2009 was approximately $1.3 million or 3.8% of total revenue, compared to approximately $1.4 million, or 4.0% of total revenue, during the third quarter of 2008. Depreciation and amortization expense in the third quarter was $144,000 less than 2008, primarily reflecting impairments recorded during the last half of 2008, partially offset by the 3 new restaurants added in the fourth quarter of 2008. Depreciation and amortization expense for the nine months ended September 27, 2009 and September 28, 2008 was approximately $3.8 million and $4.1 million, respectively, and was 3.7% and 3.8% respectively, of total revenue. For the full year, we expect depreciation to be essentially flat, as a percentage of total revenue, to fiscal 2008.
For the third quarter of 2009, we recorded an estimated provision for income taxes of approximately $679,000 or 35.4% of income before income taxes, compared to a tax benefit of approximately $375,000, or 33.0% of loss before income taxes, for the third quarter of 2008. For the nine months ended September 27, 2009, our tax provision was approximately $2.6 million, or 34.4% of income before income taxes, compared to the prior year comparable period of approximately $1.2 million, or 34.3% of income before income taxes. We currently estimate a tax provision of approximately 34.3% for fiscal 2009, due to a change in our income tax reserves during the quarter.
Net income for the nine months ended September 28, 2008 was approximately $4.9 million or $0.54 per basic and diluted share on approximately 9,104,000 weighted average basic shares outstanding and approximately 9,184,000 weighted average diluted shares outstanding, respectively. Net income for the nine months ended September 28, 2008 was approximately $2.3 million or $0.25 per basic share and $0.24 per diluted share on approximately 9,516,000 weighted average basic shares outstanding and approximately 9,671,000 weighted average diluted shares outstanding, respectively.
Net cash provided by operating activities for the nine months ended September 27, 2009 was approximately $11.7 million. Cash provided by operating activities was primarily from net income of approximately $4.9 million, depreciation and amortization of approximately $3.8 million, a decline in accounts receivable, net of $521,000, a decline in restricted cash of approximately $508,000, and an increase in accrued compensation and benefits of $1.4 million. These net increases to cash flows were partially offset by an approximate $1.3 million decrease in accounts payable.
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