Famous Dave's of America, Inc. (DAVE) swung to a net loss for the quarter ended Apr. 02, 2017. The company has made a net loss of $1.25 million, or $ 0.18 a share in the quarter, against a net profit of $0.83 million, or $0.12 a share in the last year period. On an adjusted basis, net loss from continuing operations for the quarter was $0.33 million, when compared with $0.02 million in the last year period. Revenue during the quarter dropped 6.43 percent to $21.98 million from $23.48 million in the previous year period. Gross margin for the quarter expanded 90 basis points over the previous year period to 75.25 percent. Operating margin for the quarter stood at negative 9.04 percent as compared to a positive 1.68 percent for the previous year period.
Operating loss for the quarter was $1.99 million, compared with an operating income of $0.40 million in the previous year period.
However, the adjusted EBITDA for the quarter stood at $0.36 million compared with $1.13 million in the prior year period. At the same time, adjusted EBITDA margin contracted 314 basis points in the quarter to 1.65 percent from 4.79 percent in the last year period.
Mike Lister, chief executive officer, commented "I am proud of the progress we are making in returning our Brand to a position of strength. The Company’s refranchising initiative will allow us to focus tirelessly on supporting our franchisees by improving Guest acquisition and experience through marketing, food and beverage innovation, training and development."
Operating cash flow improves significantly
Famous Dave's of America, Inc. has generated cash of $0.86 million from operating activities during the quarter, up 67.44 percent or $0.35 million, when compared with the last year period. The company has spent $0.10 million cash to meet investing activities during the quarter as against cash inflow of $2.07 million in the last year period.
The company has spent $0.34 million cash to carry out financing activities during the quarter as against cash outgo of $0.29 million in the last year period.
Cash and cash equivalents stood at $4.86 million as on Apr. 02, 2017, down 35.99 percent or $2.73 million from $7.60 million on Apr. 03, 2016.
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