dave_Current_Folio_8K

 

 

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C. 20549

 


 

FORM 8-K


 

CURRENT REPORT

PURSUANT TO SECTION 13 OR 15(D)

OF THE SECURITIES EXCHANGE ACT OF 1934

 

Date of Report (Date of earliest event reported): August 12, 2019 

 


FAMOUS DAVE’S OF AMERICA, INC.

(Exact name of registrant as specified in its charter)


 

 

 

 

 

 

 

Minnesota

0-21625

41-1782300

(State or other jurisdiction

of incorporation)

(Commission

File Number)

(IRS Employer

Identification No.)

 

(Address of principal executive offices) (Zip Code)

 

12701 Whitewater Drive, Suite 290, Minnetonka, MN 55343

(952) 294-1300

(Registrant’s telephone number, including area code)

 


 

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

 

☐   Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

 

☐   Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

 

☐   Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

 

☐   Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

 

Securities registered pursuant to Section 12(b) of the Act:

DAVE

 

 

Title of each class

Trading Symbol(s)

Name of each exchange on which registered

Common Stock, $0.01 par value

DAVE

The Nasdaq Global Market

 

 

Indicated by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).

 

Emerging growth company ☐

 

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. 

 

 

Item 2.02.Results of Operations and Financial Condition.

On August 12, 2019, the Company issued a press release, which is attached hereto as Exhibit 99.1, announcing the financial results for the Company’s second quarter 2019.

The information set forth in Item 2.02 of this Current Report on Form 8-K is deemed to be “furnished” and shall not be deemed to be “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), or otherwise subject to the liabilities of that Section. The information set forth in Item 2.02 of this Current Report on Form 8-K, including Exhibit 99.1, shall not be deemed incorporated by reference into any filing under the Exchange Act or the Securities Act of 1933, as amended (the “Securities Act”), regardless of any general incorporation language in such filing.

Item 9.01.Financial Statements and Exhibits.

 

 

 

Exhibit No.

    

Description

 

 

 

99.1

 

Press Release, dated August 12, 2019

 

 

Page 2 of 3

SIGNATURE

 

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

 

 

 

 

 

FAMOUS  DAVE’S  OF  AMERICA, INC.

 

 

Date: August 12, 2019

By:

/s/ Paul M. Malazita

 

 

Name: Paul M. Malazita

 

 

Title: Chief Financial Officer and Secretary

 

Page 3 of 3

dave_Ex99_2

Exhibit 99.1

 

Picture 1

 

Famous Dave’s of America, Inc. Reports Results for Second Quarter of Fiscal 2019

MINNEAPOLIS, August 12, 2019 – Famous Dave's of America, Inc. (NASDAQ: DAVE), an innovating owner and operator of barbeque restaurants, globally, today reported financial results for the second fiscal quarter ended June  30, 2019.

 

Second Quarter 2019 Highlights:

·

Company-owned same store net sales decreased 0.8%, driven by traffic decreases in Dine-In, partially offset by a 6.8% increase in To-Go same store net sales.

·

Domestic franchise-operated same store net sales increased 0.7% year-over-year. Franchise-operated system, including international units, increased by 0.5%.

·

Reacquired eight Famous Dave’s franchise stores at attractive valuations, which are slated for upgrades and relaunches. 

·

Generated over $800,000 in operating cash flow.

·

Launched 2,300 square foot small-footprint restaurant in Tucson, Arizona through a Famous Dave’s franchisee.

·

Approximately 102,000 downloads of loyalty app since it was launched in December 2018.

Highlights Subsequent to the Second Quarter 2019:

·

Reacquired five restaurants in Arizona and Kentucky from franchisees.

·

Announced agreement with Beyond Meat to add innovative and delicious non-meat items to the Famous Dave’s menu. 

 

Executive Comments

Jeff Crivello, CEO, commented, “For the second time since 2011,  our franchise community posted positive same store net sales, driven by a 0.7% increase from domestic franchisees, partially offset by a 5.8% decline from our international community.  During the first half of fiscal 2019, we have reinvested approximately $5.7 million into our system, including repurchasing franchise restaurants, and refreshes of company owned restaurants.    In addition, we refinanced our credit facility in preparation of our growth initiatives.  We have also begun the process to open new, small footprint restaurants in select markets.”

 

Key Operating Metrics

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Three Months Ended

 

 

 

Six Months Ended

 

    

June 30, 2019

    

July 1, 2018

 

 

 

June 30, 2019

    

July 1, 2018

Restaurant count:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Franchise-operated

 

 

107

 

 

135

 

 

 

107

 

 

135

 

Company-owned

 

 

29

 

 

15

 

 

 

29

 

 

15

 

Total

 

 

136

 

 

150

 

 

 

136

 

 

150

 

Same store net restaurant sales %:

 

 

  

 

 

  

 

 

 

  

 

 

  

 

Franchise-operated, domestic

 

 

0.7

%  

 

(1.4)

%  

 

 

0.6

%  

 

(1.4)

%  

Franchise-operated, international(1)

 

 

(5.8)

%  

 

(17.8)

%  

 

 

(14.8)

%  

 

(9.3)

%  

Franchise-operated total

 

 

0.5

%  

 

(2.0)

%  

 

 

0.2

%  

 

(1.5)

%  

Company-owned

 

 

(0.8)

%  

 

1.2

%  

 

 

1.0

%  

 

3.2

%  

Total

 

 

0.4

%  

 

(1.6)

%  

 

 

0.3

%  

 

(1.0)

%  

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(in thousands, expect per share data)

 

 

  

 

 

  

 

 

 

  

 

 

  

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

System-wide restaurant sales(2)

 

$

90,647

 

$

97,262

 

 

$

173,386

 

$

184,429

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net income

 

$

1,040

 

$

1,392

 

 

$

1,122

 

$

2,390

 

Adjusted net income(3)

 

 

1,439

 

 

1,701

 

 

 

2,060

 

 

2,653

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net income, per diluted share

 

$

0.11

 

$

0.16

 

 

$

0.12

 

$

0.29

 

Adjusted net income, per diluted share(3)

 

 

0.16

 

 

0.19

 

 

 

0.22

 

 

0.33

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Adjusted EBITDA(3)

 

$

2,446

 

$

2,700

 

 

$

3,477

 

$

4,494

 

 


(1)

International franchise comparable sales declines are primarily related to Puerto Rico, which is still yet to recover from the effects of recent hurricanes.

(2)

System-wide restaurant sales include sales for all Company-owned and franchise-operated restaurants, as reported by franchisees. Restaurant sales for franchise-operated restaurants are not revenues of the Company and are not included in the Company’s consolidated financial statements.

(3)

Adjusted net income (loss) from continuing operations and adjusted EBITDA are non-GAAP measures. A reconciliation of all non-GAAP measures to the most directly comparable GAAP measure is included in the accompanying financial tables.  See “Non-GAAP Reconciliation.”

Second Quarter 2019 Review

Total revenue for the second quarter of 2019 was $21.1 million, up 45.3% from the second quarter of 2018. The increase in year-over-year restaurant sales, net for the three months ended June 30, 2019 was driven primarily by the acquisition of Famous Dave’s stores in Colorado, Michigan, Ohio, Wisconsin, Indiana and Iowa and a 0.5% increase in franchise-operated same store net sales. 

On a weighted basis, same store net sales for our To-Go line of business increased 2.2% in the second quarter of fiscal 2019 as compared to the prior year period, partially offset by a decline in Dine In and Catering lines of business of 2.7% and 0.3%, respectively. During the second quarter of fiscal 2019, Dine In represented approximately 51% of our total restaurant sales, net, while To Go and Catering represented 36% and 13% of restaurant sales, net, respectively.     

Restaurant-level operating margin, as a percentage of restaurant sales, net, for Company-owned restaurants was 3.4% compared to 6.0% in the second quarter of fiscal 2018. This decline in restaurant-level operating margin was primarily a result of acquisitions of new stores in 2019, which we believe will stabilize over the remainder of fiscal 2019.

General and administrative expenses for the three months ended June  30, 2019 and July 1, 2018 represented approximately 11.3% and 14.5% of total revenues, respectively. The increase to general and administrative expenses primarily related to acquisition costs incurred related to our completed and pending acquisitions.

Net income was approximately $1.0 million, or $0.11 per share, in the second quarter of fiscal 2019 compared to net income of approximately $1.4 million, or $0.16 per share, in the second quarter of fiscal 2018.  Adjusted net income, a non-GAAP measure, was approximately $1.4 million, or $0.16 per share, compared to adjusted net income of approximately $1.7 million, or $0.19 per share, in the second quarter of fiscal 2018. A reconciliation between adjusted net income and its most directly comparable GAAP measure is included in the accompanying financial tables.

Page 2 of 8

About Famous Dave’s

Famous Dave’s develops, owns, operates and franchises barbeque restaurants. Its menu features award-winning barbequed and grilled meats, a selection of salads, sandwiches, side items, and made-from-scratch desserts. As of August 12, 2019, the Company owns 33 locations and franchises an additional 101 restaurants in 33 states, the Commonwealth of Puerto Rico, Canada, and United Arab Emirates.

Non-GAAP Financial Measures

To supplement its consolidated financial statements, which are prepared and presented in accordance with accounting principles generally accepted in the United States (“GAAP”), the Company uses non-GAAP measures including those indicated below. These non-GAAP measures exclude significant expenses and income that are required by GAAP to be recorded in the Company’s consolidated financial statements and are subject to inherent limitations. By providing non-GAAP measures, together with a reconciliation to the most comparable GAAP measure, the Company believes that it is enhancing investors’ understanding of the Company’s business and results of operations. These measures are not intended to be considered in isolation of, as substitutes for, or superior to, financial measures prepared and presented in accordance with GAAP. The non-GAAP measures presented may be different from the measures used by other companies. The Company urges investors to review the reconciliation of its non-GAAP measures to the most directly comparable GAAP measure, included in the accompanying financial tables.

Adjusted net income (loss) is net income (loss), plus asset impairment, estimated lease termination charges and other closing costs, settlement agreements, net (loss) gain on disposal of equipment, stock-based compensation, severance, acquisition costs, and the related tax impact. This number is divided by the weighted-average number of diluted shares of common stock outstanding during each period presented to arrive at adjusted net income (loss), per share. Adjusted EBITDA is net income (loss),  plus asset impairment, estimated lease termination charges and other closing costs, settlement agreements, depreciation and amortization, interest expense, net, net (loss) gain on disposal of equipment, stock-based compensation, severance, acquisition costs and provision (benefit) for income taxes.

Forward-Looking Statements

Statements in this press release that are not strictly historical, including but not limited to statements regarding the timing of the Company’s restaurant openings, the timing of refreshes and the timing or success of refranchising plans, are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These forward-looking statements involve known and unknown risks, which may cause the Company’s actual results to differ materially from expected results. Although the Company believes the expectations reflected in any forward-looking statements are based on reasonable assumptions, it can give no assurance that its expectation will be attained. Factors that could cause actual results to differ materially from Famous Dave’s expectation include financial performance, restaurant industry conditions, execution of restaurant development and construction programs, franchisee performance, changes in local or national economic conditions, availability of financing, governmental approvals and other risks detailed from time to time in the Company’s SEC reports.

Contact:Jeff Crivello – Chief Executive Officer
952-294-1300

Darrow Associates, Inc.
Peter Seltzberg – Managing Director
516-419-9915
pseltzberg@darrowir.com

Page 3 of 8

FAMOUS DAVE’S OF AMERICA, INC. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF OPERATIONS

 (in thousands, except per share data)

(Unaudited)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Three Months Ended

 

Six Months Ended

 

 

 

June 30, 2019

 

July 1, 2018

 

June 30, 2019

    

July 1, 2018

 

Revenue:

 

 

  

 

 

  

 

 

  

 

 

  

 

Restaurant sales, net

 

$

16,898

 

$

9,955

 

$

27,212

 

$

18,668

 

Franchise royalty and fee revenue

 

 

3,447

 

 

3,753

 

 

6,651

 

 

7,161

 

Franchisee national advertising fund contributions

 

 

471

 

 

529

 

 

880

 

 

998

 

Licensing and other revenue

 

 

312

 

 

301

 

 

578

 

 

555

 

Total revenue

 

 

21,128

 

 

14,538

 

 

35,321

 

 

27,382

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Costs and expenses:

 

 

  

 

 

  

 

 

  

 

 

  

 

Food and beverage costs

 

 

5,325

 

 

3,099

 

 

8,685

 

 

5,816

 

Labor and benefits costs

 

 

5,819

 

 

3,361

 

 

9,776

 

 

6,557

 

Operating expenses

 

 

5,187

 

 

2,894

 

 

8,356

 

 

5,735

 

Depreciation and amortization expenses

 

 

515

 

 

309

 

 

779

 

 

702

 

General and administrative expenses

 

 

2,377

 

 

2,111

 

 

4,894

 

 

3,985

 

National advertising fund expenses

 

 

471

 

 

529

 

 

880

 

 

998

 

Asset impairment, estimated lease termination charges and other closing costs, net

 

 

97

 

 

216

 

 

504

 

 

112

 

Net (gain) loss on disposal of property

 

 

(140)

 

 

30

 

 

(146)

 

 

29

 

Total costs and expenses

 

 

19,651

 

 

12,549

 

 

33,728

 

 

23,934

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Income from operations

 

 

1,477

 

 

1,989

 

 

1,593

 

 

3,448

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Other income (expense):

 

 

  

 

 

  

 

 

  

 

 

  

 

Interest expense

 

 

(288)

 

 

(197)

 

 

(359)

 

 

(342)

 

Interest income

 

 

33

 

 

20

 

 

87

 

 

25

 

Total other expense

 

 

(255)

 

 

(177)

 

 

(272)

 

 

(317)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Income before income taxes

 

 

1,222

 

 

1,812

 

 

1,321

 

 

3,131

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Income tax expense

 

 

(182)

 

 

(420)

 

 

(199)

 

 

(741)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net income

 

$

1,040

 

$

1,392

 

$

1,122

 

$

2,390

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic net income per share

 

$

0.11

 

$

0.16

 

$

0.12

 

$

0.29

 

Diluted net income per share

 

$

0.11

 

$

0.16

 

$

0.12

 

$

0.29

 

Weighted average shares outstanding - basic

 

 

9,093

 

 

8,809

 

 

9,089

 

 

8,108

 

Weighted average shares outstanding - diluted

 

 

9,278

 

 

8,835

 

 

9,191

 

 

8,131

 

Page 4 of 8

FAMOUS DAVE’S OF AMERICA, INC. AND SUBSIDIARIES

OPERATING RESULTS

(unaudited)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Three Months Ended

 

 

Six Months Ended

 

 

 

 

June 30, 2019

    

July 1, 2018

    

    

June 30, 2019

    

July 1, 2018

    

    

Food and beverage costs(1)

 

31.5

%  

31.1

%  

 

31.9

%  

31.2

%  

 

Labor and benefits costs(1)

 

34.4

%  

33.8

%  

 

35.9

%  

35.1

%  

 

Operating expenses(1)

 

30.7

%  

29.1

%  

 

30.7

%  

30.7

%  

 

Restaurant level operating margin(1)(3)  

 

3.4

%  

6.0

%  

 

1.5

%  

3.0

%  

 

Depreciation and amortization expenses(2)

 

2.4

%  

2.1

%  

 

2.2

%  

2.6

%  

 

General and administrative expenses(2)

 

11.3

%  

14.5

%  

 

13.9

%  

14.6

%  

 

Income from operations(2)

 

7.0

%  

13.7

%  

 

4.5

%  

12.6

%  

 


(1)

As a percentage of restaurant sales, net

(2)

As a percentage of total revenue

(3)

Restaurant level margins are equal to restaurant sales, net, less restaurant level food and beverage costs, labor and benefit costs, and operating expenses.

Page 5 of 8

FAMOUS DAVE’S OF AMERICA, INC. AND SUBSIDIARIES

CONSOLIDATED BALANCE SHEETS

 (in thousands, except per share data)

(unaudited)

 

 

 

 

 

 

 

 

ASSETS

 

 

 

 

 

 

Current assets:

 

June 30, 2019

    

December 30, 2018

Cash and cash equivalents

 

$

8,220

 

$

11,598

Restricted cash

 

 

800

 

 

842

Accounts receivable, net of allowance for doubtful accounts of $87,000 and $192,000, respectively

 

 

4,470

 

 

4,300

Inventories

 

 

1,250

 

 

722

Prepaid income taxes and income taxes receivable

 

 

379

 

 

377

Prepaid expenses and other current assets

 

 

1,238

 

 

1,363

Assets held for sale

 

 

2,842

 

 

 —

Total current assets

 

 

19,199

 

 

19,202

 

 

 

 

 

 

 

Property, equipment and leasehold improvements, net

 

 

10,468

 

 

10,385

 

 

 

 

 

 

 

Other assets:

 

 

  

 

 

  

Operating lease right-of-use assets

 

 

24,745

 

 

 —

Goodwill

 

 

435

 

 

61

Intangible assets, net

 

 

3,488

 

 

1,428

Deferred tax asset, net

 

 

5,753

 

 

5,747

Other assets

 

 

1,699

 

 

1,533

 

 

$

65,787

 

$

38,356

 

 

 

 

 

 

 

LIABILITIES AND SHAREHOLDERS’ EQUITY

 

 

  

 

 

 

 

 

 

 

 

 

 

Current liabilities:

 

 

  

 

 

  

Accounts payable

 

$

4,114

 

$

3,765

Current portion of lease liabilities

 

 

3,294

 

 

 —

Current portion of long-term debt and financing lease obligations

 

 

166

 

 

1,369

Accrued compensation and benefits

 

 

1,685

 

 

808

Other current liabilities

 

 

3,461

 

 

2,970

Total current liabilities

 

 

12,720

 

 

8,912

 

 

 

  

 

 

  

Long-term liabilities:

 

 

  

 

 

  

Lease liabilities, less current portion

 

 

23,932

 

 

 —

Long-term debt, less current portion

 

 

2,404

 

 

2,411

Other liabilities

 

 

2,869

 

 

4,492

Total liabilities

 

 

41,925

 

 

15,815

 

 

 

 

 

 

 

Shareholders’ equity:

 

 

  

 

 

  

Common stock, $.01 par value, 100,000 shares authorized, 9,274 and 9,085 shares issued and outstanding at June 30, 2019 and December 30, 2018, respectively

 

 

93

 

 

91

Additional paid-in capital

 

 

7,596

 

 

7,375

Retained earnings

 

 

16,173

 

 

15,075

Total shareholders’ equity

 

 

23,862

 

 

22,541

 

 

$

65,787

 

$

38,356

 

Page 6 of 8

FAMOUS DAVE’S OF AMERICA, INC. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF CASH FLOWS

 (in thousands)

(unaudited)

 

 

 

 

 

 

 

 

 

 

Six Months Ended

 

    

June 30, 2019

    

July 1, 2018

Cash flows from operating activities:

 

 

  

 

 

  

Net income

 

$

1,122

 

$

2,390

Adjustments to reconcile net income to cash flows provided by operations:

 

 

  

 

 

  

Depreciation and amortization

 

 

779

 

 

702

Stock-based compensation

 

 

223

 

 

167

Net (gain) loss on disposal of property

 

 

(146)

 

 

29

Asset impairment and estimated lease termination charges (gain)

 

 

469

 

 

(268)

Bad debts recovery

 

 

(87)

 

 

(25)

Other non-cash items

 

 

124

 

 

(230)

Changes in operating assets and liabilities:

 

 

 

 

 

 

Accounts receivable, net

 

 

(422)

 

 

(298)

Other assets

 

 

(411)

 

 

716

Accounts payable

 

 

321

 

 

(851)

Accrued and other liabilities

 

 

481

 

 

(1,298)

Cash flows provided by operating activities

 

 

2,453

 

 

1,034

 

 

 

 

 

 

 

Cash flows from investing activities:

 

 

  

 

 

  

Proceeds from the sale of assets

 

 

 6

 

 

1,187

Purchases of property, equipment and leasehold improvements

 

 

(1,242)

 

 

(290)

Payments for acquired restaurants

 

 

(4,265)

 

 

 —

Advances on notes receivable

 

 

(150)

 

 

(648)

Payments received on note receivable

 

 

 8

 

 

 —

Cash flows (used for) provided by investing activities

 

 

(5,643)

 

 

249

 

 

 

 

 

 

 

Cash flows from financing activities:

 

 

  

 

 

  

Payments for debt issuance costs

 

 

(54)

 

 

 —

Payments on long-term debt and financing lease obligations

 

 

(176)

 

 

(5,757)

Proceeds from sale of common stock, net of offering costs

 

 

 —

 

 

5,132

Proceeds from exercise of stock options

 

 

 —

 

 

494

Cash flows used for financing activities

 

 

(230)

 

 

(131)

 

 

 

 

 

 

 

(Decrease) increase in cash, cash equivalents and restricted cash

 

 

(3,420)

 

 

1,152

Cash, cash equivalents and restricted cash, beginning of period

 

 

12,440

 

 

10,426

Cash, cash equivalents and restricted cash, end of period

 

$

9,020

 

$

11,578

 

Page 7 of 8

 

FAMOUS DAVE’S OF AMERICA, INC. AND SUBSIDIARIES

NON-GAAP RECONCILIATION

(in thousands, except per share data)

(unaudited)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Three Months Ended

 

 

 

Six Months Ended

(dollars in thousands)

    

June 30, 2019

    

July 1, 2018

 

 

 

June 30, 2019

 

    

July 1, 2018

Net income

 

$

1,040

 

$

1,392

 

 

 

1,122

 

 

2,390

Asset impairment and estimated lease termination charges and other closing costs

 

 

97

 

 

216

 

 

 

504

 

 

112

Net gain on disposal of equipment

 

 

(140)

 

 

30

 

 

 

(146)

 

 

29

Stock-based compensation

 

 

140

 

 

120

 

 

 

223

 

 

167

Acquisition costs

 

 

357

 

 

 —

 

 

 

521

 

 

 —

Severance

 

 

 —

 

 

36

 

 

 

 3

 

 

36

Tax adjustment

 

 

(55)

 

 

(93)

 

 

 

(167)

 

 

(81)

Adjusted net income

 

$

1,439

 

$

1,701

 

 

$

2,060

 

$

2,653

Basic adjusted net income per common share

 

$

0.16

 

$

0.19

 

 

$

0.23

 

$

0.33

Diluted adjusted net income per common share

 

$

0.16

 

$

0.19

 

 

$

0.22

 

$

0.33

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Weighted average common share outstanding - basic

 

 

9,093

 

 

8,809

 

 

 

9,089

 

 

8,108

Weighted average common share outstanding - diluted

 

 

9,278

 

 

8,835

 

 

 

9,191

 

 

8,131

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net income

 

$

1,040

 

$

1,392

 

 

$

1,122

 

$

2,390

Asset impairment and estimated lease termination charges and other closing costs

 

 

97

 

 

216

 

 

 

504

 

 

112

Depreciation and amortization

 

 

515

 

 

309

 

 

 

779

 

 

702

Interest expense, net

 

 

255

 

 

177

 

 

 

272

 

 

317

Net (gain) loss on disposal of equipment

 

 

(140)

 

 

30

 

 

 

(146)

 

 

29

Stock-based compensation

 

 

140

 

 

120

 

 

 

223

 

 

167

Acquisition costs

 

 

357

 

 

 —

 

 

 

521

 

 

 —

Severance

 

 

 —

 

 

36

 

 

 

 3

 

 

36

Provision for income taxes

 

 

182

 

 

420

 

 

 

199

 

 

741

Adjusted EBITDA

 

$

2,446

 

$

2,700

 

 

$

3,477

 

$

4,494

 

Page 8 of 8