v2.3.0.11
Aquisitions
 6 Months Ended
Jul. 03, 2011
Acquisition Of Seven Restaurants In New York And New Jersey [Abstract]  
Business Combination Disclosure Text Block

(12)        Acquisition of Seven Restaurants in New York and New Jersey

 

On March 3, 2010, the Company purchased the assets of seven of nine Famous Dave's restaurants located in New York and New Jersey previously owned and operated by a Famous Dave's franchisee, North Country BBQ Ventures, Inc.  Famous Dave's of America, Inc. continues to operate the restaurants.  Of the two restaurants that were not acquired; one was subsequently closed and the other was purchased out of bankruptcy by another buyer who assumed the existing franchise agreement.

 

The following unaudited pro forma information presents a summary of the results of operations of the Company assuming the acquisition of the seven restaurants described above occurred at the beginning of fiscal 2010 as required by FASB Accounting Standards Codification for Business Combinations. Pro forma results were based on the previous owner's unaudited financial statement which is permitted under the Securities and Exchange Commission rules for business that did not meet the significant subsidiary criteria. These results were then adjusted for the impact of certain acquisition-related items, such as: additional amortization of identified intangible assets, additional depreciation expense of property and equipment recorded at fair value, increased interest expense on acquisition debt, inclusion of transaction-related charges and related income tax effects.

 

The pro forma financial information is presented for informational purposes only and is not indicative of the results of operations that would have been achieved if the acquisition had taken place at the beginning of fiscal 2010, nor is it indicative of future operating results.

 

Pro Forma Results (unaudited)Six Months Ended
(in thousands except per share data) July 3,  July 4,
     2011(1)  2010
         
 Revenue$78,380 $75,694
 Net income 3,583  3,945
 Net income per common share-basic 0.44  0.45
 Net income per common share-diluted 0.43  0.44
         
         
(1)No pro forma results were included for the second quarter of fiscal 2011 or 2010 because the acquired restaurants were company-owned restaurants for the entire second quarter of fiscal 2011 and 2010. Also, since the acquired restaurants were company-owned restaurants for the entire first six months ended July 3, 2011, these were actual results and not pro forma results. Additionally, results for the first six months of 2010 exclude the impact of the approximate $2.0 million gain on acquisition, net of acquisition costs.