Famous Dave\'s of America Inc. (DAVE, Financial) filed Quarterly Report for the period ended 2009-06-28.
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 $52 million; its shares were traded at around $5.71 with a P/E ratio of 9.4 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.
During the quarter, we elected to retire early two notes for our Minnetonka and Woodbury, Minnesota restaurants. Total cash paid for the early extinguishment of debt was $3.3 million, including a pre-payment penalty of $350,000. Additionally, as a result of this transaction, we wrote off approximately $100,000 of deferred financing fees which is also included in the loss on early extinguishment of debt. Subsequent to quarter end, we also retired the debt on one of our restaurants in Virginia for approximately $1.2 million and paid off another $1.4 million note on another restaurant on July 31, 2009. The Company expects the third note will be retired by the end of the fiscal year. These last two, and expected third, early debt repayments had no pre-payment penalties but will require the write-off of approximately $60,000 of deferred financing costs during the remainder of the fiscal year. As of July 31st, the Company will have paid down a net total of approximately $8.3 million of debt since the end of fiscal 2008, representing more than 28% of its outstanding debt.
Interest expense was approximately $426,000 or 1.2% of total revenue for the second quarter of fiscal 2009, compared to approximately $463,000 or 1.2% of total revenue for the comparable time frame of fiscal 2008. This category includes interest expense for notes payable, financing lease obligations, our line of credit, and a company match and interest for deferrals made under our non-qualified deferred compensation plan. We benefited from lower interest rates year over year. For the remainder of fiscal 2009, we expect to have approximately $420,000 lower interest expense due to our early debt repayments and additional savings due to lower average revolver balances and interest rate decreases year over year. The total expected pay down of long-term debt in fiscal 2009 should result in approximately $610,000 of interest savings for fiscal 2010 alone, but approximately $4.3 million in total over the original term of the debt.
Net income for the six months ended June 29, 2008 was approximately $3.7 million or $0.41 per basic and $0.40 per diluted share on approximately 9,094,000 weighted average basic shares outstanding and approximately 9,149,000 weighted average diluted shares outstanding, respectively. Net income for the six months ended June 29, 2008 was approximately $3.1 million or $0.32 per basic and diluted share on approximately 9,622,000 weighted average basic shares outstanding and approximately 9,784,000 weighted average diluted shares outstanding, respectively.
Net cash provided by operating activities for the six months ended June 28, 2009 was approximately $7.3 million. Cash provided by operating activities was primarily from net income of approximately $3.7 million, depreciation and amortization of approximately $2.6 million, a decline in prepaid expenses and other current assets of $674,000 a decline in restricted cash of approximately $454,000, and an increase in accrued compensation and benefits of $416,000. These net increases were partially offset by an approximate $879,000 decrease in accounts payable.
Net cash provided by operating activities for the six months ended June 29, 2008 was approximately $6.7 million. Cash provided by operating activities was primarily from net income of approximately $3.1 million, depreciation and amortization of approximately $2.7 million, a decline in restricted cash of approximately $889,000 and a decrease in deferred income taxes of approximately $709,000. In addition, there were increases in stock based compensation of approximately $597,000. These net increases to cash flows were partially offset by an approximate $738,000 decrease in accrued compensation and benefits, a $531,000 decrease in accounts payable, and a $534,000 decrease in other current liabilities.
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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 $52 million; its shares were traded at around $5.71 with a P/E ratio of 9.4 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:
Franchise-related revenue consists of royalty revenue and franchise fees, which include initial franchise fees and area development fees. Franchise-related revenue was approximately $4.4 million for the second quarter of 2009, compared to $4.7 million, for the same period in 2008. Franchise royalty revenue reflected 12 new franchise restaurants net of 7 closures, including the 3 Atlanta restaurants, since the second quarter of 2008, and a comparable sales decrease of 10.9%. Three new franchise restaurants opened during the second quarter of fiscal 2009, and despite the challenging environment, these new restaurants had average opening weekly sales of approximately $90,000. Franchise-related revenue was approximately $8.7 million for the six months ended June 28, 2009 compared to approximately $9.2 million for the six months ended June 29, 2008, primarily reflecting a year-over-year decrease in royalty revenue of 2.5% for the six month timeframe. There were 130 franchise-operated restaurants opened at June 28, 2009 compared to 125 franchise-operated restaurants at June 29, 2008.During the quarter, we elected to retire early two notes for our Minnetonka and Woodbury, Minnesota restaurants. Total cash paid for the early extinguishment of debt was $3.3 million, including a pre-payment penalty of $350,000. Additionally, as a result of this transaction, we wrote off approximately $100,000 of deferred financing fees which is also included in the loss on early extinguishment of debt. Subsequent to quarter end, we also retired the debt on one of our restaurants in Virginia for approximately $1.2 million and paid off another $1.4 million note on another restaurant on July 31, 2009. The Company expects the third note will be retired by the end of the fiscal year. These last two, and expected third, early debt repayments had no pre-payment penalties but will require the write-off of approximately $60,000 of deferred financing costs during the remainder of the fiscal year. As of July 31st, the Company will have paid down a net total of approximately $8.3 million of debt since the end of fiscal 2008, representing more than 28% of its outstanding debt.
Interest expense was approximately $426,000 or 1.2% of total revenue for the second quarter of fiscal 2009, compared to approximately $463,000 or 1.2% of total revenue for the comparable time frame of fiscal 2008. This category includes interest expense for notes payable, financing lease obligations, our line of credit, and a company match and interest for deferrals made under our non-qualified deferred compensation plan. We benefited from lower interest rates year over year. For the remainder of fiscal 2009, we expect to have approximately $420,000 lower interest expense due to our early debt repayments and additional savings due to lower average revolver balances and interest rate decreases year over year. The total expected pay down of long-term debt in fiscal 2009 should result in approximately $610,000 of interest savings for fiscal 2010 alone, but approximately $4.3 million in total over the original term of the debt.
Net income for the six months ended June 29, 2008 was approximately $3.7 million or $0.41 per basic and $0.40 per diluted share on approximately 9,094,000 weighted average basic shares outstanding and approximately 9,149,000 weighted average diluted shares outstanding, respectively. Net income for the six months ended June 29, 2008 was approximately $3.1 million or $0.32 per basic and diluted share on approximately 9,622,000 weighted average basic shares outstanding and approximately 9,784,000 weighted average diluted shares outstanding, respectively.
Net cash provided by operating activities for the six months ended June 28, 2009 was approximately $7.3 million. Cash provided by operating activities was primarily from net income of approximately $3.7 million, depreciation and amortization of approximately $2.6 million, a decline in prepaid expenses and other current assets of $674,000 a decline in restricted cash of approximately $454,000, and an increase in accrued compensation and benefits of $416,000. These net increases were partially offset by an approximate $879,000 decrease in accounts payable.
Net cash provided by operating activities for the six months ended June 29, 2008 was approximately $6.7 million. Cash provided by operating activities was primarily from net income of approximately $3.1 million, depreciation and amortization of approximately $2.7 million, a decline in restricted cash of approximately $889,000 and a decrease in deferred income taxes of approximately $709,000. In addition, there were increases in stock based compensation of approximately $597,000. These net increases to cash flows were partially offset by an approximate $738,000 decrease in accrued compensation and benefits, a $531,000 decrease in accounts payable, and a $534,000 decrease in other current liabilities.
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