Famous Dave's of America, Inc. (DAVE) swung to a net loss for the quarter ended Oct. 02, 2016. The company has made a net loss of $2.46 million, or $ 0.35 a share in the quarter, against a net profit of $0.71 million, or $0.10 a share in the last year period. On an adjusted basis, net profit for the quarter stood at $0.04 million, or $0.01 a share compared with a net loss of $0.07 million, or $0.01 a share in the last year period.
Revenue during the quarter dropped 8.50 percent to $25.51 million from $27.88 million in the previous year period. Gross margin for the quarter expanded 48 basis points over the previous year period to 74.49 percent. Operating margin for the quarter stood at negative 14.70 percent as compared to a positive 4.55 percent for the previous year period.
Operating loss for the quarter was $3.75 million, compared with an operating income of $1.27 million in the previous year period.
However, the adjusted operating income for the quarter stood at $0.28 million compared to $0.14 million in the prior year period. At the same time, adjusted operating margin improved 63 basis points in the quarter to 1.12 percent from 0.49 percent in the last year period.
Mike Lister, chief executive officer, commented "the board and management team continues to operate with a strong sense of urgency and focus on improved performance. Having our company-owned restaurants post the best comparable sales performance in 12 quarters helps validate and energize our team's commitment to the four key priorities of revitalizing sales and traffic, reducing costs, elevating organizational effectiveness, and rebuilding culture. Collectively, the entire Brand is very excited at the opportunity to return Famous Dave's of America to long term Famous performance"
Operating cash flow drops significantly
Famous Dave's of America, Inc. has generated cash of $1.82 million from operating activities during the nine month period, down 26.38 percent or $0.65 million, when compared with the last year period.
Cash flow from investing activities was $1.66 million for the nine month period, down 24.27 percent or $0.53 million, when compared with the last year period.
The company has spent $2.02 million cash to carry out financing activities during the nine month period as against cash outgo of $4.79 million in the last year period.
Cash and cash equivalents stood at $6.77 million as on Oct. 02, 2016, up 235.62 percent or $4.75 million from $2.02 million on Sep. 27, 2015.
Working capital remains negative
Working capital of Famous Dave's of America, Inc. was negative $2.82 million on Oct. 02, 2016 compared with negative $6.88 million on Sep. 27, 2015. Current ratio was at 0.87 as on Oct. 02, 2016, up from 0.68 on Sep. 27, 2015.
Cash conversion cycle (CCC) has increased to 51 days for the quarter from 27 days for the last year period. Days sales outstanding went up to 15 days for the quarter compared with 14 days for the same period last year.
Days inventory outstanding has decreased to 13 days for the quarter compared with 33 days for the previous year period. At the same time, days payable outstanding went up to 80 days for the quarter from 74 for the same period last year.
Debt comes down marginally
Famous Dave's of America, Inc. has recorded a decline in total debt over the last one year. It stood at $13.16 million as on Oct. 02, 2016, down 1.70 percent or $0.23 million from $13.38 million on Sep. 27, 2015. Total debt was 24.67 percent of total assets as on Oct. 02, 2016, compared with 21.88 percent on Sep. 27, 2015. Debt to equity ratio was at 0.63 as on Oct. 02, 2016, up from 0.48 as on Sep. 27, 2015.
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