Dave & Buster's Entertainment, Inc., (NASDAQ: PLAY), ("Dave
& Buster's" or "the Company"), an owner and operator of
entertainment and dining venues, today announced financial results
for its second quarter ended July 30, 2023.
Key Second Quarter 2023
Highlights
- Second quarter
revenue of $542.1 million increased 15.7% from the second
quarter of 2022. Including the pro forma contribution of Main Event
in the second quarter of 2022, year-over-year revenue decreased
$2.5 million, or 0.5%.
- Pro forma combined
comparable store sales (including Main Event branded stores)
decreased 6.3% compared with the same period in 2022 and increased
5.8% compared with the same period in 2019.
- Net income totaled
$25.9 million, or $0.60 per diluted share, compared with net income
of $29.1 million, or $0.59 per diluted share in the second quarter
of 2022. Adjusted net income totaled $40.9 million, or $0.94 per
diluted share, compared with adjusted net income of $41.9 million,
or $0.85 per diluted share in the second quarter of 2022.
- Adjusted EBITDA of
$140.3 million in the quarter increased 21.3% from the second
quarter of 2022. Including the pro forma contribution of Main Event
in the second quarter of 2022, the year-over-year Adjusted EBITDA
growth was $11.5 million, or 8.9%.
- The Company ended
the second quarter with $572.8 million of liquidity, which included
$82.6 million in cash and $490.2 million available under its
$500 million revolving credit facility.
- The Company opened
two new Dave & Buster's stores and one new Main Event store in
the second quarter.
Other Highlights
- The Company
purchased 2.1 million shares at a total cost of $74.5 million
in the second quarter. Total share repurchases to date in fiscal
2023 are 5.7 million shares totaling $200.0 million and
representing 11.8% of the Company's outstanding shares as of the
end of fiscal 2022.
- The Board of
Directors has approved an increase to the Company's existing share
repurchase authorization of $100 million, bringing the total
remaining authorization to $200 million.
- The Company
opportunistically amended its credit agreement, reducing the
interest rate margin applicable to term loans and revolving loans
outstanding under the credit agreement by 1.25%.
"As we enter the second half of 2023, we remain
as confident as ever in our ability to execute against the numerous
and sizeable growth initiatives that we laid out in our recent
investor day presentation and which we have already begun
implementing," said Chris Morris, Dave & Buster's Chief
Executive Officer. "During the quarter, we are pleased that we
continued to open new stores at highly attractive returns on
invested capital, that we have diligently managed our cost
structure and continued to expand our Adjusted EBITDA margins, and
that our exceptional team has done a phenomenal job navigating our
highly profitable and resilient business model through a dynamic
period in our economy and against strong top line comparisons
versus 2022. We are laser focused on optimizing our business and
growing revenue, Adjusted EBITDA and cash flow."
Second Quarter
2023 Results
Total revenue was $542.1 million, an increase of
15.7% from $468.4 million in the second quarter of 2022. Including
the pro forma contribution of Main Event stores in the prior year
period, total revenue decreased 0.5% versus the second quarter of
2022.
Pro forma combined comparable store sales
(including Main Event branded stores) decreased 6.3% compared with
the second quarter of 2022 and increased 5.8% compared with the
second quarter of 2019.
Operating income totaled $77.1 million, or 14.3%
of revenue, compared with operating income of $56.5 million, or
12.2% of revenue in the second quarter of 2022.
Net income totaled $25.9 million, or $0.60 per
diluted share, compared with net income of $29.1 million, or $0.59
per diluted share in the second quarter of 2022.
Adjusted EBITDA totaled $140.3 million, or 25.9%
of revenue, compared with Adjusted EBITDA of $115.7 million, or
24.7% of revenue in the second quarter of 2022.
Store operating income before depreciation and
amortization totaled $162.4 million, or 30.0% of revenue, compared
with store operating income before depreciation and amortization of
$136.7 million, or 29.2% of revenue in the second quarter of
2022.
Balance Sheet, Liquidity, Cash Flow and
Share Repurchases
The Company generated $103.8 million in
operating cash flow during the second quarter, ending the quarter
with $82.6 million in cash and $490.2 million of availability
under its $500 million revolving credit facility, net of $9.8
million in outstanding letters of credit. The Company ended the
quarter with a Net Total Leverage Ratio of 2.1x as defined under
its Credit Agreement as the ratio of the aggregate principal amount
of any Consolidated Debt less Unrestricted Cash and unrestricted
Permitted Investments to Credit Adjusted EBITDA. The Company's
maximum permitted Net Total Leverage Ratio is 3.5x.
The Company repurchased 2.1 million shares
at a total cost of $74.5 million in the second quarter, bringing
the total repurchases to date in fiscal 2023 to 5.7 million
shares totaling $200.0 million and representing 11.8% of
outstanding shares. The Company had $100 million remaining on its
share repurchase authorization at the end of the second quarter of
2023, which the Board subsequently increased to $200 million.
"We are pleased with the progress we made in the
quarter strengthening our Company's financial position with the
favorable repricing of our Term Loan B, returning capital to
shareholders via our share buyback program, and establishing a
quantifiable roadmap to execute upon by unveiling our long-term
strategic plan at an investor day in June," said Michael Quartieri,
Dave & Buster's Chief Financial Officer. "Our strong balance
sheet, low leverage, and superior cash flow profile provides us
with the ability to invest in the business to drive profitable
growth and continue to return capital to shareholders."
Share Repurchase
Authorization
The Company announced that its Board of Directors approved an
increase to its remaining share repurchase program authorizing the
Company to repurchase up to $200 million of its common stock. The
program may be suspended or discontinued at any time.
Quarterly Report on Form 10-Q Available
The Company’s Quarterly Report on Form 10-Q,
will be available at www.sec.gov and on the Company’s investor
relations website, contains a thorough review of its financial
results for the second quarter ended July 30, 2023.
Investor Conference Call and
Webcast
Management will host a conference call to report
these results on Wednesday, September 6, 2023, at 4:00 p.m. Central
Time (5:00 p.m. Eastern Time). Participants can access the
conference call by dialing toll-free (877) 883-0383. The
international dial-in for participants is (412) 902-6506. The
participant entry number is 7383364. A replay will be available
after the call for one year beginning at 6:00 p.m. Central Time
(7:00 p.m. Eastern Time) and can be accessed by dialing toll-free
(877) 344-7529 or by the international toll number (412) 317-0088;
the replay access code 5994680. Additionally, a live and archived
webcast of the conference call will be available at
ir.daveandbusters.com.
About Dave & Buster’s Entertainment,
Inc.
Founded in 1982 and headquartered in Coppell,
Texas, Dave & Buster's Entertainment, Inc., is the owner and
operator of 213 venues in North America that offer premier
entertainment and dining experiences to guests through two distinct
brands: Dave & Buster’s and Main Event. The Company has 155
Dave & Buster’s branded stores in 42 states, Puerto Rico, and
Canada and offers guests the opportunity to "Eat Drink Play and
Watch," all in one location. Each store offers a full menu of
entrées and appetizers, a complete selection of alcoholic and
non-alcoholic beverages, and an extensive assortment of
entertainment attractions centered around playing games and
watching live sports and other televised events. The Company also
operates 58 Main Event branded stores in 20 states across the
country, and offers state-of-the-art bowling, laser tag, hundreds
of arcade games and virtual reality, making it the perfect place
for families to connect and make memories. For more information
about each brand, visit daveandbusters.com and mainevent.com.
Forward-Looking Statements
The Company cautions that this release contains
forward-looking statements. These forward-looking statements
involve risks and uncertainties, including: our ability to continue
as a going concern; our ability to obtain waivers, and thereafter
continue to satisfy covenant requirements, under our revolving
credit facility; our ability to access other funding sources; our
overall level of indebtedness; general business and economic
conditions, including as a result of the coronavirus pandemic and
any new coronavirus variants; the impact of competition; the
seasonality of the Company’s business; adverse weather conditions;
future commodity prices; guest and employee complaints and
litigation; fuel and utility costs; labor costs and availability;
changes in consumer and corporate spending; changes in demographic
trends; changes in governmental regulations; unfavorable publicity,
our ability to open new stores, and acts of God. Accordingly,
actual results may differ materially from the forward-looking
statements, and the Company therefore cautions you against relying
on such forward-looking statements. Dave & Buster’s intends
these forward-looking statements to speak only as of the time of
this release and does not undertake to update or revise them as
more appropriate information becomes available, except as required
by law.
Non-GAAP Measures
To supplement its consolidated financial
statements, which are prepared and presented in accordance with
GAAP, the Company uses the following non-GAAP financial measures:
EBITDA, EBITDA margin, Adjusted EBITDA, Adjusted EBITDA margin,
Credit Adjusted EBITDA (calculated in accordance with the Company's
credit agreement), Credit Adjusted EBITDA margin, Store operating
income before depreciation and amortization, Store operating income
before depreciation and amortization margin, Adjusted Net income,
Adjusted net income per share - Diluted, and pro forma financials
including Main Event branded stores prior to the Company's
ownership, reconciliations of which can be found on our website
(collectively the “non-GAAP financial measures”). The presentation
of this financial information is not intended to be considered in
isolation or as a substitute for, or superior to, the financial
information prepared and presented in accordance with GAAP. The
Company uses these non-GAAP financial measures for financial and
operational decision making and as a means to evaluate
period-to-period comparisons. The Company believes that they
provide useful information about operating results, enhance the
overall understanding of our operating performance and future
prospects, and allow for greater transparency with respect to key
metrics used by management in its financial and operational
decision making. The non-GAAP measures used by the Company in this
press release may be different from the measures used by other
companies.
For Investor Relations
Inquiries:
Cory Hatton, VP Investor Relations &
TreasurerDave & Buster’s Entertainment,
Inc.Cory.Hatton@daveandbusters.com
|
|
DAVE & BUSTER'S ENTERTAINMENT, INC. |
Consolidated Statements of Operations |
(unaudited, in millions, except per share
amounts) |
|
|
Thirteen Weeks Ended |
|
Twenty-Six Weeks Ended |
|
July 30, 2023 |
|
July 31, 2022 |
|
July 30, 2023 |
|
July 31, 2022 |
Entertainment revenues |
$ |
360.8 |
|
|
66.6 |
% |
|
$ |
311.4 |
|
|
66.5 |
% |
|
$ |
753.9 |
|
|
66.2 |
% |
|
$ |
610.6 |
|
|
66.4 |
% |
Food and beverage
revenues |
|
181.3 |
|
|
33.4 |
% |
|
|
157.0 |
|
|
33.5 |
% |
|
|
385.5 |
|
|
33.8 |
% |
|
|
308.9 |
|
|
33.6 |
% |
Total revenues |
|
542.1 |
|
|
100.0 |
% |
|
|
468.4 |
|
|
100.0 |
% |
|
|
1,139.4 |
|
|
100.0 |
% |
|
|
919.5 |
|
|
100.0 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cost of entertainment (as a
percentage of entertainment revenues) |
|
34.4 |
|
|
9.5 |
% |
|
|
29.1 |
|
|
9.3 |
% |
|
|
68.7 |
|
|
9.1 |
% |
|
|
55.9 |
|
|
9.2 |
% |
Cost of food and beverage (as
a percentage of food and beverage revenues) |
|
49.2 |
|
|
27.1 |
% |
|
|
46.5 |
|
|
29.6 |
% |
|
|
105.2 |
|
|
27.3 |
% |
|
|
89.7 |
|
|
29.0 |
% |
Total cost of products |
|
83.6 |
|
|
15.4 |
% |
|
|
75.6 |
|
|
16.1 |
% |
|
|
173.9 |
|
|
15.3 |
% |
|
|
145.6 |
|
|
15.8 |
% |
Operating payroll and
benefits |
|
127.0 |
|
|
23.4 |
% |
|
|
113.6 |
|
|
24.3 |
% |
|
|
257.6 |
|
|
22.6 |
% |
|
|
207.0 |
|
|
22.5 |
% |
Other store operating
expenses |
|
169.1 |
|
|
31.2 |
% |
|
|
142.5 |
|
|
30.4 |
% |
|
|
339.1 |
|
|
29.8 |
% |
|
|
266.9 |
|
|
29.0 |
% |
General and administrative
expenses |
|
32.2 |
|
|
5.9 |
% |
|
|
37.7 |
|
|
8.0 |
% |
|
|
63.6 |
|
|
5.6 |
% |
|
|
66.0 |
|
|
7.2 |
% |
Depreciation and amortization
expense |
|
49.1 |
|
|
9.1 |
% |
|
|
38.6 |
|
|
8.2 |
% |
|
|
98.0 |
|
|
8.6 |
% |
|
|
71.9 |
|
|
7.8 |
% |
Pre-opening costs |
|
4.0 |
|
|
0.7 |
% |
|
|
3.9 |
|
|
0.8 |
% |
|
|
8.7 |
|
|
0.8 |
% |
|
|
6.9 |
|
|
0.8 |
% |
Total operating costs |
|
465.0 |
|
|
85.7 |
% |
|
|
411.9 |
|
|
87.8 |
% |
|
|
940.9 |
|
|
82.7 |
% |
|
|
764.3 |
|
|
83.1 |
% |
Operating income |
|
77.1 |
|
|
14.3 |
% |
|
|
56.5 |
|
|
12.2 |
% |
|
|
198.5 |
|
|
17.3 |
% |
|
|
155.2 |
|
|
16.9 |
% |
Interest expense, net |
|
32.9 |
|
|
6.1 |
% |
|
|
17.1 |
|
|
3.7 |
% |
|
|
63.6 |
|
|
5.6 |
% |
|
|
28.5 |
|
|
3.1 |
% |
Loss on debt refinancing |
|
11.2 |
|
|
2.1 |
% |
|
|
1.5 |
|
|
0.3 |
% |
|
|
11.2 |
|
|
1.0 |
% |
|
|
1.5 |
|
|
0.2 |
% |
Income before provision for income taxes |
|
33.0 |
|
|
6.1 |
% |
|
|
37.9 |
|
|
8.2 |
% |
|
|
123.7 |
|
|
10.7 |
% |
|
|
125.2 |
|
|
13.6 |
% |
Provision for income
taxes |
|
7.1 |
|
|
1.3 |
% |
|
|
8.8 |
|
|
1.9 |
% |
|
|
27.7 |
|
|
2.4 |
% |
|
|
29.1 |
|
|
3.2 |
% |
Net income |
$ |
25.9 |
|
|
4.8 |
% |
|
$ |
29.1 |
|
|
6.3 |
% |
|
$ |
96.0 |
|
|
8.3 |
% |
|
$ |
96.1 |
|
|
10.4 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income per share: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic |
$ |
0.60 |
|
|
|
|
$ |
0.60 |
|
|
|
|
$ |
2.11 |
|
|
|
|
$ |
1.97 |
|
|
|
Diluted |
$ |
0.60 |
|
|
|
|
$ |
0.59 |
|
|
|
|
$ |
2.09 |
|
|
|
|
$ |
1.95 |
|
|
|
Weighted average shares used
in per share calculations: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic shares |
|
43.01 |
|
|
|
|
|
48.83 |
|
|
|
|
|
45.47 |
|
|
|
|
|
48.71 |
|
|
|
Diluted shares |
|
43.38 |
|
|
|
|
|
49.27 |
|
|
|
|
|
45.83 |
|
|
|
|
|
49.36 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other information: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Company-owned stores at end of period |
|
211 |
|
|
|
|
|
200 |
|
|
|
|
|
211 |
|
|
|
|
|
200 |
|
|
|
Store operating weeks in the period |
|
2,730 |
|
|
|
|
|
2,171 |
|
|
|
|
|
5,374 |
|
|
|
|
|
4,047 |
|
|
|
Total revenue per store operating weeks in the period (in
thousands) |
$ |
199 |
|
|
|
|
$ |
216 |
|
|
|
|
$ |
212 |
|
|
|
|
$ |
227 |
|
|
|
|
|
DAVE & BUSTER'S ENTERTAINMENT, INC. |
Other Operating Data |
(unaudited, in millions) |
Condensed Consolidated Balance
Sheet:
|
July 30, 2023 |
|
January 29, 2023 |
ASSETS |
|
|
|
Cash and cash equivalents |
|
$82.6 |
|
|
|
$181.6 |
|
Other current assets |
|
125.4 |
|
|
|
112.1 |
|
Total current assets |
|
208.0 |
|
|
|
293.7 |
|
Property and equipment,
net |
|
1,221.7 |
|
|
|
1,180.2 |
|
Operating lease right of use
assets |
|
1,352.7 |
|
|
|
1,333.6 |
|
Intangible and other assets,
net |
|
947.0 |
|
|
|
953.5 |
|
Total assets |
|
$3,729.4 |
|
|
|
$3,761.0 |
|
|
|
|
|
LIABILITIES AND
STOCKHOLDERS' EQUITY |
|
|
|
Total current liabilities |
|
$422.5 |
|
|
|
$438.0 |
|
Operating lease
liabilities |
|
1,586.8 |
|
|
|
1,567.8 |
|
Other long-term
liabilities |
|
127.0 |
|
|
|
122.0 |
|
Long-term debt, net |
|
1,278.7 |
|
|
|
1,222.7 |
|
Stockholders' equity |
|
314.4 |
|
|
|
410.5 |
|
Total liabilities and stockholders' equity |
|
$3,729.4 |
|
|
|
$3,761.0 |
|
Summary Cash Flow Information:
|
Thirteen Weeks Ended |
|
Twenty-Six Weeks Ended |
|
July 30, 2023 |
|
July 31, 2022 |
|
July 30, 2023 |
|
July 31, 2022 |
Net cash provided by operating activities: |
$ |
103.8 |
|
|
$ |
84.5 |
|
|
$ |
196.2 |
|
|
$ |
233.1 |
|
Net cash used in investing activities: |
|
(82.6 |
) |
|
|
(882.4 |
) |
|
|
(133.4 |
) |
|
|
(922.2 |
) |
Net cash provided by (used in) financing activities: |
|
(30.1 |
) |
|
|
759.2 |
|
|
|
(161.8 |
) |
|
|
763.6 |
|
Increase (decrease) in cash and cash equivalents |
$ |
(8.9 |
) |
|
$ |
(38.7 |
) |
|
$ |
(99.0 |
) |
|
$ |
74.5 |
|
|
|
DAVE & BUSTER'S ENTERTAINMENT, INC. |
Non-GAAP Measures |
(unaudited, in millions) |
Adjusted EBITDA:
Adjusted EBITDA represents net income before
income taxes, depreciation and amortization expense and other
items, as calculated below. Adjusted EBITDA is a non-GAAP financial
measure commonly used in our industry and should not be construed
as an alternative to net income as an indicator of operating
performance or as an alternative to cash flow provided by operating
activities as a measure of liquidity (as determined in accordance
with GAAP). Adjusted EBITDA may not be comparable to similarly
titled measures reported by other companies. Adjusted EBITDA is
presented because we believe that it provides useful information to
investors and analysts regarding our operating performance. By
reporting Adjusted EBITDA, we provide a basis for comparison of our
business operations between current, past and future periods by
excluding items that we do not believe are indicative of our core
operating performance. A reconciliation of net income to Adjusted
EBITDA is provided below:
|
Thirteen Weeks Ended |
|
Twenty-six weeks ended |
|
July 30, 2023 |
|
July 31, 2022 |
|
July 30, 2023 |
|
July 31, 2022 |
Net income |
|
$25.9 |
|
|
4.8 |
% |
|
|
$29.1 |
|
|
6.2 |
% |
|
|
$96.0 |
|
|
8.4 |
% |
|
|
$96.1 |
|
|
10.5 |
% |
Add back: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest expense, net |
|
32.9 |
|
|
|
|
|
17.1 |
|
|
|
|
|
63.6 |
|
|
|
|
|
28.5 |
|
|
|
Loss on debt refinancing |
|
11.2 |
|
|
|
|
|
1.5 |
|
|
|
|
|
11.2 |
|
|
|
|
|
1.5 |
|
|
|
Provision for income taxes |
|
7.1 |
|
|
|
|
|
8.8 |
|
|
|
|
|
27.7 |
|
|
|
|
|
29.1 |
|
|
|
Depreciation and amortization expense |
|
49.1 |
|
|
|
|
|
38.6 |
|
|
|
|
|
98.0 |
|
|
|
|
|
71.9 |
|
|
|
EBITDA |
|
126.2 |
|
|
23.3 |
% |
|
|
95.1 |
|
|
20.3 |
% |
|
|
296.5 |
|
|
26.0 |
% |
|
|
227.1 |
|
|
24.7 |
% |
Add back: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loss on asset disposal |
|
— |
|
|
|
|
|
0.2 |
|
|
|
|
|
0.7 |
|
|
|
|
|
0.4 |
|
|
|
Impairment of long-lived assets and lease termination costs |
|
1.7 |
|
|
|
|
|
1.8 |
|
|
|
|
|
1.7 |
|
|
|
|
|
1.8 |
|
|
|
Share-based compensation |
|
5.2 |
|
|
|
|
|
4.7 |
|
|
|
|
|
11.9 |
|
|
|
|
|
8.3 |
|
|
|
Merger & integration costs |
|
5.3 |
|
|
|
|
|
13.9 |
|
|
|
|
|
8.0 |
|
|
|
|
|
18.3 |
|
|
|
System implementation costs |
|
1.7 |
|
|
|
|
|
— |
|
|
|
|
|
3.2 |
|
|
|
|
|
— |
|
|
|
Other items, net |
|
0.2 |
|
|
|
|
|
— |
|
|
|
|
|
0.3 |
|
|
|
|
|
— |
|
|
|
Adjusted EBITDA, a non-GAAP
measure |
|
$140.3 |
|
|
25.9 |
% |
|
|
$115.7 |
|
|
24.7 |
% |
|
|
$322.3 |
|
|
28.3 |
% |
|
|
$255.9 |
|
|
27.8 |
% |
Store Operating Income Before
Depreciation and Amortization:
Store Operating Income Before Depreciation and
Amortization, a non-GAAP measure, represents operating income, plus
depreciation and amortization expense, general and administrative
expenses and pre-opening costs. We believe that Store Operating
Income Before Depreciation and Amortization is another useful
measure in evaluating our operating performance because it removes
the impact of general and administrative expenses, which are not
incurred at the store level, and the costs of opening new stores,
which are non-recurring at the store level, and thereby enables the
comparability of the operating performance of our stores for the
periods presented. We also believe that Store Operating Income
Before Depreciation and Amortization is a useful measure in
evaluating our operating performance within the entertainment and
dining industry because it permits the evaluation of store-level
productivity, efficiency, and performance, and we use Store
Operating Income Before Depreciation and Amortization as a means of
evaluating store financial performance compared with our
competitors. However, because this measure excludes significant
items such as general and administrative expenses and pre-opening
costs, as well as our interest expense, net, loss on debt
extinguishment/refinance and depreciation and amortization expense,
which are important in evaluating our consolidated financial
performance from period to period, the value of this measure is
limited as a measure of our consolidated financial performance.
|
Thirteen Weeks Ended |
|
Twenty-Six Weeks Ended |
|
Jul 30, 2023 |
|
Jul 31, 2022 |
|
Jul 30, 2023 |
|
Jul 31, 2022 |
Operating income |
$ |
77.1 |
|
|
14.2 |
% |
|
$ |
56.5 |
|
|
12.1 |
% |
|
$ |
198.5 |
|
|
17.4 |
% |
|
$ |
155.2 |
|
|
16.9 |
% |
Add back: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
General and administrative expenses |
|
32.2 |
|
|
|
|
|
37.7 |
|
|
|
|
|
63.6 |
|
|
|
|
|
66.0 |
|
|
|
Depreciation and amortization expense |
|
49.1 |
|
|
|
|
|
38.6 |
|
|
|
|
|
98.0 |
|
|
|
|
|
71.9 |
|
|
|
Pre-opening costs |
|
4.0 |
|
|
|
|
|
3.9 |
|
|
|
|
|
8.7 |
|
|
|
|
|
6.9 |
|
|
|
Store operating income before
depreciation and amortization, a non-GAAP measure |
$ |
162.4 |
|
|
30.0 |
% |
|
$ |
136.7 |
|
|
29.2 |
% |
|
$ |
368.8 |
|
|
32.4 |
% |
|
$ |
300.0 |
|
|
32.6 |
% |
Credit Adjusted EBITDA:
Credit Adjusted EBITDA, a non-GAAP measure,
represents Adjusted EBITDA plus certain other items as defined in
our Credit Facility. Other adjustments include (i) entertainment
revenue deferrals, (ii) the cost of new projects, including store
pre-opening costs, (iii) business optimization expenses and other
restructuring costs, and (iv) other costs and adjustments as
permitted by the Debt Agreements. We believe the presentation of
Credit Adjusted EBITDA is appropriate as it provides additional
information to investors about the calculation of, and compliance
with, certain financial covenants in the Credit Facility. The
following table sets forth a reconciliation of Net income to Credit
Adjusted EBITDA for the periods shown:
|
Thirteen Weeks EndedJuly 30,
2023 |
|
Trailing Four Quarters Ended July 30, 2023 |
Net income |
|
$25.9 |
|
|
|
$137.0 |
|
Add back: |
|
|
|
Interest expense, net |
|
32.9 |
|
|
|
122.5 |
|
Loss on debt refinancing |
|
11.2 |
|
|
|
11.2 |
|
Provision for income taxes |
|
7.1 |
|
|
|
35.1 |
|
Depreciation and amortization expense |
|
49.1 |
|
|
|
195.4 |
|
EBITDA |
|
126.2 |
|
|
|
501.2 |
|
Add back: |
|
|
|
Loss on asset disposal |
|
— |
|
|
|
1.1 |
|
Impairment of long-lived assets |
|
1.7 |
|
|
|
1.7 |
|
Share-based compensation |
|
5.2 |
|
|
|
23.6 |
|
Transaction and integration costs |
|
5.3 |
|
|
|
14.9 |
|
System implementation costs |
|
1.7 |
|
|
|
3.8 |
|
Pre-opening costs |
|
4.0 |
|
|
|
16.4 |
|
Entertainment revenue deferrals |
|
(0.6 |
) |
|
|
12.3 |
|
Other items, net |
|
0.2 |
|
|
|
0.4 |
|
Credit Adjusted EBITDA, a
non-GAAP measure |
|
$143.7 |
|
|
|
$575.4 |
|
The following table provides a calculation of
Net Total Leverage Ratio, as defined in our senior secured credit
facility, for the period shown:
|
As Of And For The Trailing Four Quarters Ended July 30,
2023 |
Credit Adjusted EBITDA (a) |
|
$575.4 |
|
Total debt (1) |
|
$1,287.7 |
|
Less: Cash and cash
equivalents |
|
$(82.6 |
) |
Add: Outstanding letters of
credit |
|
$9.8 |
|
Net debt (b) |
|
$1,214.9 |
|
Net Total Leverage Ratio (b /
a) |
|
2.1 x |
|
(1) |
Amount equals the face amount of debt outstanding less unamortized
debt issuance costs and debt discount. |
Adjusted Net Income:
Adjusted Net income, a non-GAAP measure,
represents net income before special items, as calculated below. We
believe excluding these special items from net income provides
investors with a clearer perspective of our ongoing operating
performance and a more relevant comparison to prior period results.
The following table presents a reconciliation of Net income to
Adjusted Net income and presents Adjusted Net income per diluted
share, for the periods shown:
|
Thirteen Weeks Ended |
|
Twenty-Six Weeks Ended |
|
July 30, 2023 |
|
July 31, 2022 |
|
July 30, 2023 |
|
July 31, 2022 |
|
Net Income |
|
EPS |
|
Net Income |
|
EPS |
|
Net Income |
|
EPS |
|
Net Income |
|
EPS |
Net income |
|
$25.9 |
|
|
|
$0.60 |
|
|
|
$29.1 |
|
|
|
$0.59 |
|
|
|
$96.0 |
|
|
|
$2.09 |
|
|
|
$96.1 |
|
|
|
$1.95 |
|
Add back: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loss on debt refinancing |
|
11.2 |
|
|
|
0.26 |
|
|
|
1.5 |
|
|
|
0.03 |
|
|
|
11.2 |
|
|
|
0.24 |
|
|
|
1.5 |
|
|
|
0.03 |
|
Loss on asset disposal |
|
— |
|
|
|
— |
|
|
|
0.2 |
|
|
|
— |
|
|
|
0.7 |
|
|
|
0.02 |
|
|
|
0.4 |
|
|
|
0.01 |
|
Impairment of long-lived assets and lease termination costs |
|
1.7 |
|
|
|
0.04 |
|
|
|
1.8 |
|
|
|
0.04 |
|
|
|
1.7 |
|
|
|
0.04 |
|
|
|
1.8 |
|
|
|
0.04 |
|
Merger & integration costs |
|
5.3 |
|
|
|
0.12 |
|
|
|
13.9 |
|
|
|
0.28 |
|
|
|
8.0 |
|
|
|
0.17 |
|
|
|
18.3 |
|
|
|
0.37 |
|
System implementation costs |
|
1.7 |
|
|
|
0.04 |
|
|
|
— |
|
|
|
— |
|
|
|
3.2 |
|
|
|
0.07 |
|
|
|
— |
|
|
|
— |
|
Other items, net |
|
0.2 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
0.3 |
|
|
|
0.01 |
|
|
|
— |
|
|
|
— |
|
Tax impact of items above, net (1) |
|
(5.1 |
) |
|
|
(0.12 |
) |
|
|
(4.6 |
) |
|
|
(0.09 |
) |
|
|
(6.4 |
) |
|
|
(0.14 |
) |
|
|
(5.8 |
) |
|
|
(0.12 |
) |
Adjusted Net income, a
non-GAAP measure |
|
$40.9 |
|
|
|
$0.94 |
|
|
|
$41.9 |
|
|
|
$0.85 |
|
|
|
$114.7 |
|
|
|
$2.50 |
|
|
|
$112.3 |
|
|
|
$2.27 |
|
(1) |
The income tax effect related to special items is based on the
statutory tax rate in effect at the end of each period. |
DAVE & BUSTER'S ENTERTAINMENT, INC. |
Supplemental Data |
(in millions) |
|
Comparable Store Sales & Average Weekly Sales
Data (1) |
|
Fiscal Q2 2023 |
|
Fiscal Q1 2023 |
|
Fiscal Q4 2022 |
|
Fiscal Q3 2022 |
Total Comparable Store Sales % Change vs 2019 |
|
|
5.8 |
|
% |
|
|
10.3 |
|
% |
|
|
14.1 |
|
% |
|
|
17.5 |
|
% |
Total Comparable Store Sales %
Change vs prior year |
|
(6.3 |
) |
% |
|
(4.1 |
) |
% |
|
|
19.0 |
|
% |
|
|
13.3 |
|
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Stores at the end of the
period |
|
|
211 |
|
|
|
|
208 |
|
|
|
|
204 |
|
|
|
|
203 |
|
|
Total Store Operating
Weeks |
|
|
2,730 |
|
|
|
|
2,690 |
|
|
|
|
2,641 |
|
|
|
|
2,616 |
|
|
Total Store Average Weekly
Sales (in thousands) |
|
$ |
199 |
|
|
|
$ |
222 |
|
|
|
$ |
213 |
|
|
|
$ |
184 |
|
|
(1) |
For proforma comparisons to prior year for Q1 and Q2 2023, there
were 185 comparable stores. For other proforma comparisons to prior
year and to 2019, there were 153 comparable stores. |
|
|
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