Famous Dave's Reports Second Quarter Net Income of $0.17 Per Share
Total revenue of $28.1 million increased 10.5% over the prior year
Highlights for the second quarter of 2005, relative to the same quarter last year, were as follows:
Total revenue of $28.1 million increased 10.5% over the prior year.
Comparable sales for company-owned restaurants increased 5.0% over the prior year.
Earnings were $0.17 per diluted share.
Commenting on the second quarter performance, David Goronkin, President and Chief Executive Officer, said, "We are very pleased with the results achieved in the second quarter. We remain committed to demonstrating strong, sustainable profitability over time, and this is yet another quarter where our results are reflective of our efforts."
"Our primary focus in the second quarter was on growing the brand and on growing the system," Goronkin continued. "We successfully opened nine new restaurants during the quarter, and year to date we have opened 14 restaurants, bringing our total restaurants to 118. In the process, we have entered into five additional states, with new restaurants in Massachusetts, New York, Pennsylvania, Texas and Washington State. We are right on track for our restaurant growth expectations for 2005."
Net income for the second quarter ending July 3, 2005 was approximately $1.9 million, or $0.17 per diluted share, on total revenue of approximately $28.1 million. In comparison, for the second quarter of 2004, net income was approximately $996,000 or $0.08 per diluted share, on total revenue of approximately $25.4 million. For the second quarter of 2005, net sales for company-owned restaurants, open year-round for 18 months or more, increased approximately 5.0%, as compared to a decrease of 2.4% for the second quarter of 2004. Total revenues for the second quarter of 2005 increased approximately 10.5% over the 2004 comparable period, reflecting the comparable sales increase as well as strong growth in franchise royalties.
For the six months ended July 3, 2005, the company reported net income of $2.4 million, or $0.21 per diluted share, on total revenue of approximately $51.6 million, compared with net income of $1.5 million, or $0.12 per diluted share, on total revenue of $48.1 million for the first six months of 2004. For the first half of 2005, net sales for company-owned restaurants, open year-round for 18 months or more, increased 3.2% compared with a decline of 2.4% for the first half of 2004.
Goronkin added that the earnings results for the second quarter of 2005 reflected approximately $17,000 for compensation expense related to the company's stock-based incentive programs. The six month period ended July 3, 2005 included compensation expense of approximately $209,000, or $0.01 per diluted share, related to the company's stock-based incentive programs.
In addition to the nine franchise-operated restaurant openings in the second quarter of 2005, the company also entered into area development agreements for 16 new restaurants in Connecticut (other than Fairfield County), central portions of Indiana, Maine, Western Massachusetts, Rhode Island, and Vermont. Famous Dave's ended the quarter with 118 restaurants, including 38 company-owned restaurants and 80 franchise-operated restaurants in 29 states.
During the 2005 second quarter, the company repurchased approximately 592,300 of its common shares at an average price of $11.04 per share, excluding commissions. This completed the one million share program, approved by the board of directors in November 2004, at an average price of $11.93 per share, excluding commissions.
Total revenue of $28.1 million increased 10.5% over the prior year.
Comparable sales for company-owned restaurants increased 5.0% over the prior year.
Earnings were $0.17 per diluted share.
Commenting on the second quarter performance, David Goronkin, President and Chief Executive Officer, said, "We are very pleased with the results achieved in the second quarter. We remain committed to demonstrating strong, sustainable profitability over time, and this is yet another quarter where our results are reflective of our efforts."
"Our primary focus in the second quarter was on growing the brand and on growing the system," Goronkin continued. "We successfully opened nine new restaurants during the quarter, and year to date we have opened 14 restaurants, bringing our total restaurants to 118. In the process, we have entered into five additional states, with new restaurants in Massachusetts, New York, Pennsylvania, Texas and Washington State. We are right on track for our restaurant growth expectations for 2005."
Net income for the second quarter ending July 3, 2005 was approximately $1.9 million, or $0.17 per diluted share, on total revenue of approximately $28.1 million. In comparison, for the second quarter of 2004, net income was approximately $996,000 or $0.08 per diluted share, on total revenue of approximately $25.4 million. For the second quarter of 2005, net sales for company-owned restaurants, open year-round for 18 months or more, increased approximately 5.0%, as compared to a decrease of 2.4% for the second quarter of 2004. Total revenues for the second quarter of 2005 increased approximately 10.5% over the 2004 comparable period, reflecting the comparable sales increase as well as strong growth in franchise royalties.
For the six months ended July 3, 2005, the company reported net income of $2.4 million, or $0.21 per diluted share, on total revenue of approximately $51.6 million, compared with net income of $1.5 million, or $0.12 per diluted share, on total revenue of $48.1 million for the first six months of 2004. For the first half of 2005, net sales for company-owned restaurants, open year-round for 18 months or more, increased 3.2% compared with a decline of 2.4% for the first half of 2004.
Goronkin added that the earnings results for the second quarter of 2005 reflected approximately $17,000 for compensation expense related to the company's stock-based incentive programs. The six month period ended July 3, 2005 included compensation expense of approximately $209,000, or $0.01 per diluted share, related to the company's stock-based incentive programs.
In addition to the nine franchise-operated restaurant openings in the second quarter of 2005, the company also entered into area development agreements for 16 new restaurants in Connecticut (other than Fairfield County), central portions of Indiana, Maine, Western Massachusetts, Rhode Island, and Vermont. Famous Dave's ended the quarter with 118 restaurants, including 38 company-owned restaurants and 80 franchise-operated restaurants in 29 states.
During the 2005 second quarter, the company repurchased approximately 592,300 of its common shares at an average price of $11.04 per share, excluding commissions. This completed the one million share program, approved by the board of directors in November 2004, at an average price of $11.93 per share, excluding commissions.
