EX-99.3 5 dave-20190304ex99370d5cb.htm EX-99.3 Exhibit 99.3

FAMOUS DAVE’S OF AMERICA, INC. AND SUBSIDIARIES

UNAUDITED PRO FORMA CONSOLIDATED BALANCE SHEET AT DECEMBER 30, 2018

(in thousands)

 

The following pro forma Consolidated Balance Sheet is presented as if the Company had acquired the Colorado Purchased Restaurants as of December 30, 2018. This unaudited pro forma Consolidated Balance Sheet should be read in conjunction with the unaudited pro forma Consolidated Statements of Operations and the Company's historical financial statements and notes thereto in the Company’s Annual Report on Form 10-K for the year ended December 30, 2018. The pro forma Consolidated Balance Sheet is unaudited and is not necessarily indicative of what the actual financial position would have been had the Company acquired the Colorado Purchased Restaurants as of December 30, 2018, nor does it purport to present the future financial position of the Company.

 

 

 

 

 

 

 

 

 

 

 

 

ASSETS

Current assets:

    

Consolidated
Famous Dave's
of America, Inc.

    

Cornerstar BBQ, Inc.,
Larkridge BBQ, Inc.,
Quebec Square BBQ,
Inc., and Razorback
BBQ, Inc. 

    

Pro Forma Famous
Dave's of America, Inc.

 

Cash and cash equivalents

 

$

11,598 

 

$
(3,831)

 

$

7,767 

 

Restricted cash

 

 

842 

 

 

- 

 

 

842 

 

Accounts receivable, net of allowance for doubtful accounts

 

 

4,300 

 

 
(405)

 

 

3,895 

 

Inventories

 

 

722 

 

 

150 

 

 

872 

 

Prepaid income taxes and income taxes receivable

 

 

377 

 

 

- 

 

 

377 

 

Prepaid expenses and other current assets

 

 

1,363 

 

 

- 

 

 

1,363 

 

Total current assets

 

 

19,202 

 

 
(4,086)

 

 

15,116 

 

 

 

 

 

 

 

 

 

 

 

 

Property, equipment and leasehold improvements, net

 

 

10,385 

 

 

1,902 

 

 

12,287 

 

 

 

 

 

 

 

 

 

 

 

 

Other assets:

 

 

 

 

 

 

 

 

 

 

Intangible assets, net

 

 

1,489 

 

 

1,822 

 

 

3,311 

 

Goodwill

 

 

- 

 

 

1,043 

 

 

1,043 

 

Deferred tax asset, net

 

 

5,747 

 

 

- 

 

 

5,747 

 

Other assets

 

 

1,533 

 

 

31 

 

 

1,564 

 

 

 

$

38,356 

 

$

712 

 

$

39,068 

 

 

 

 

 

 

 

 

 

 

 

 

LIABILITIES AND SHAREHOLDERS’ EQUITY

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Current liabilities:

 

 

 

 

 

 

 

 

 

 

Current portion of long-term debt and financing lease obligations

 

$

1,369 

 

$

- 

 

$

1,369 

 

Accounts payable

 

 

3,765 

 

 

- 

 

 

3,765 

 

Accrued compensation and benefits

 

 

808 

 

 

- 

 

 

808 

 

Other current liabilities

 

 

2,970 

 

 

250 

 

 

3,220 

 

Total current liabilities

 

 

8,912 

 

 

250 

 

 

9,162 

 

 

 

 

 

 

 

 

 

 

 

 

Long-term liabilities:

 

 

 

 

 

 

 

 

 

 

Long-term debt, less current portion

 

 

2,411 

 

 

- 

 

 

2,411 

 

Other liabilities

 

 

4,492 

 

 

462 

 

 

4,954 

 

Total liabilities

 

 

15,815 

 

 

712 

 

 

16,527 

 

 

 

 

 

 

 

 

 

 

 

 

Shareholders’ equity:

 

 

 

 

 

 

 

 

 

 

Common stock

 

 

91 

 

 

- 

 

 

91 

 

Additional paid-in capital

 

 

7,375 

 

 

- 

 

 

7,375 

 

Retained earnings

 

 

15,075 

 

 

- 

 

 

15,075 

 

Total shareholders’ equity

 

 

22,541 

 

 

- 

 

 

22,541 

 

 

 

$

38,356 

 

$

712 

 

$

39,068 

 

 

2

FAMOUS DAVE’S OF AMERICA, INC. AND SUBSIDIARIES

UNAUDITED PRO FORMA CONSOLIDATED STATEMENTS OF OPERATIONS FOR THE YEAR ENDED

DECEMBER 31, 2017 AND THE THREE MONTHS ENDED MARCH 31, 2019

(in thousands)

 

 

The following Unaudited Pro Forma Consolidated Statements of Operations for the year ended December 31, 2017, and the three months ended March 31, 2019, are presented as if the Company acquired the Colorado Purchased Restaurants as of the beginning of the first fiscal year presented. These unaudited pro forma Consolidated Statements of Operations should be read in conjunction with the audited Consolidated Statements of Operations and the Company’s historical financial statements and notes thereto in the Company’s Annual Report on Form 10-K for the year ended December 31, 2017.  Additionally, these statements should be read in conjunction with the unaudited pro forma Consolidated Balance Sheet and the Company’s historical financial statements and notes thereto included in the Company's Quarterly Report on Form 10-Q for the quarter ended March 31, 2019. The pro forma Consolidated Statements of Operations are unaudited and are not necessarily indicative of what the actual results of operations would have been had the Company acquired the Colorado Purchased Restaurants at the beginning of each period presented, nor does it purport to present the future results of operations of the Company.

3

FAMOUS DAVE’S OF AMERICA, INC. AND SUBSIDIARIES

UNAUDITED PRO FORMA CONSOLIDATED STATEMENTS OF OPERATIONS FOR THE YEAR ENDED

DECEMBER 31, 2017 AND THE THREE MONTHS ENDED MARCH 31, 2019

(in thousands)

 

Unaudited Pro Forma Consolidated Statement of Operations for the year ended December 31, 2017:

 

 

 

 

 

 

 

 

 

 

 

 

 

Revenue:

 

Consolidated Famous Dave's of America, Inc. (1)

 

 

Cornerstar BBQ, Inc., Larkridge BBQ, Inc., Quebec Square BBQ, Inc., and Razorback BBQ, Inc. (2)

 

 

Pro Forma Adjustments

 

 

Pro Forma Famous Dave's of America, Inc.

Restaurant sales, net

$

48,874

 

$

17,064

 

$

 

 

$

65,938

Franchise royalty and fee revenue

 

14,767

 

 

 -

 

 

(796)

(3)

 

13,971

Licensing and other revenue

 

954

 

 

 -

 

 

 -

 

 

954

Total revenue

 

64,595

 

 

17,064

 

 

(796)

 

 

80,863

 

 

 

 

 

 

 

 

 

 

 

 

Costs and expenses:

 

  

 

 

 

 

 

 

 

 

 

Food and beverage costs

 

14,782

 

 

4,914

 

 

 

 

 

19,696

Labor and benefits costs

 

17,653

 

 

5,040

 

 

 

 

 

22,693

Operating expenses

 

14,658

 

 

3,369

 

 

 

 

 

18,027

Depreciation and amortization expenses

 

2,785

 

 

341

 

 

 

 

 

3,126

General and administrative expenses

 

14,634

 

 

2,278

 

 

(1,485)

(4)

 

15,427

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

 

6,816

 

 

 -

 

 

 

 

 

6,816

Net loss on disposal of property

 

70

 

 

 -

 

 

 

 

 

70

Total costs and expenses

 

71,398

 

 

15,942

 

 

(1,485)

 

 

85,855

 

 

 

 

 

 

 

 

 

 

 

 

Income (loss) from operations

 

(6,803)

 

 

1,122

 

 

689

 

 

(4,992)

 

 

 

 

 

 

 

 

 

 

 

 

Other income (expense):

 

  

 

 

 

 

 

 

 

 

 

Interest expense

 

(661)

 

 

(51)

 

 

 -

 

 

(712)

Interest income

 

22

 

 

 -

 

 

 -

 

 

22

Other expense, net

 

(82)

 

 

 -

 

 

 

 

 

(82)

Total other expense

 

(721)

 

 

(51)

 

 

 -

 

 

(772)

 

 

 

 

 

 

 

 

 

 

 

 

Income (loss) before income taxes

 

(7,524)

 

 

1,070

 

 

689

 

 

(5,765)

 

 

 

 

 

 

 

 

 

 

 

 

Income tax (expense) benefit

 

858

 

 

 -

 

 

(201)

(5)

 

657

 

 

 

 

 

 

 

 

 

 

 

 

Net income (loss) from continuing operations

 

(6,666)

 

 

1,070

 

 

488

 

 

(5,107)

Net loss from discontinued operations, net of tax

 

(1,457)

 

 

 -

 

 

 -

 

 

(1,457)

Net income (loss)

$

(8,123)

 

$

1,070

 

$

488

 

$

(6,564)

 

4

FAMOUS DAVE’S OF AMERICA, INC. AND SUBSIDIARIES

UNAUDITED PRO FORMA CONSOLIDATED STATEMENTS OF OPERATIONS FOR THE YEAR ENDED

DECEMBER 31, 2017 AND THE THREE MONTHS ENDED MARCH 31, 2019

(in thousands)

 

 

Unaudited Pro Forma Consolidated Statement of Operations for the three months ended March 31, 2019:

 

 

 

 

 

 

 

 

 

 

 

 

 

Revenue:

 

Consolidated Famous Dave's of America, Inc. (1)

 

 

Cornerstar BBQ, Inc., Larkridge BBQ, Inc., Quebec Square BBQ, Inc., and Razorback BBQ, Inc. (2)

 

 

Pro Forma Adjustments

 

 

Pro Forma Famous Dave's of America, Inc.

Restaurant sales, net

$

10,314

 

$

2,099

 

$

 -

 

$

12,413

Franchise royalty and fee revenue

 

3,204

 

 

 -

 

 

(140)

 

 

3,064

Franchisee national advertising fund contributions

 

409

 

 

 -

 

 

 -

 

 

409

Licensing and other revenue

 

266

 

 

 -

 

 

 -

 

 

266

Total revenue

 

14,193

 

 

2,099

 

 

(140)

 

 

16,152

 

 

 

 

 

 

 

 

 

 

 

 

Costs and expenses:

 

  

 

 

 

 

 

 

 

 

 

Food and beverage costs

 

3,360

 

 

659

 

 

 -

 

 

4,019

Labor and benefits costs

 

3,957

 

 

728

 

 

 -

 

 

4,685

Operating expenses

 

3,169

 

 

499

 

 

 -

 

 

3,668

Depreciation and amortization expenses

 

264

 

 

64

 

 

 -

 

 

328

General and administrative expenses

 

2,517

 

 

260

 

 

(557)

(4)

 

2,220

National advertising fund expenses

 

409

 

 

 -

 

 

 -

 

 

409

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

 

407

 

 

 -

 

 

 -

 

 

407

Net loss on disposal of property

 

(6)

 

 

 -

 

 

 -

 

 

(6)

Total costs and expenses

 

14,077

 

 

2,210

 

 

(557)

 

 

15,730

 

 

 

 

 

 

 

 

 

 

 

 

Income (loss) from operations

 

116

 

 

(111)

 

 

417

 

 

422

 

 

 

 

 

 

 

 

 

 

 

 

Other income (expense):

 

  

 

 

 

 

 

 

 

 

 

Interest expense

 

(71)

 

 

 -

 

 

 -

 

 

(71)

Interest income

 

54

 

 

 -

 

 

 -

 

 

54

Total other expense

 

(17)

 

 

 -

 

 

 -

 

 

(17)

 

 

 

 

 

 

 

 

 

 

 

 

Income (loss) before income taxes

 

99

 

 

(111)

 

 

417

 

 

405

 

 

 

 

 

 

 

 

 

 

 

 

Income tax (expense) benefit

 

(17)

 

 

 -

 

 

 -

 

 

(17)

 

 

 

 

 

 

 

 

 

 

 

 

Net income (loss)

$

82

 

$

(111)

 

$

417

 

$

388

 

 

5

FAMOUS DAVE’S OF AMERICA, INC. AND SUBSIDIARIES

UNAUDITED PRO FORMA CONSOLIDATED STATEMENTS OF OPERATIONS FOR THE YEAR ENDED

DECEMBER 31, 2017 AND THE THREE MONTHS ENDED MARCH 31, 2019

(in thousands)

 

 

Unaudited pro forma Consolidated Statements of Operations for the year ended December 31, 2017 and the three months ended March 31, 2019:

(1)

Reflects the Company’s historical operations for the period indicated as previously filed.

(2)

Reflects the operations of the Colorado Purchased Restaurants for the period indicated.

(3)

Represents the adjustment needed to back out royalties paid for the year ended December 31, 2017

(4)

Represents the adjustment needed to back out management fees paid and adding back transaction costs excluded from the interim period.

(5)

Represents tax expense at the Company’s 2017 effective tax rate.

6