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 first quarter ended May 1, 2022.
Key First Quarter 2022 Highlights
- Revenue
increased 24.1% from the first quarter of 2019 to a record $451.1
million compared with $265.3 million in the first
quarter of 2021 and $363.6 million in the first quarter
of 2019
- Total
comparable sales increased 10.9% compared with the same period in
2019
- Net
income totaled a record $67.0 million, or $1.35 per
diluted share, compared with net income of $19.6 million,
or $0.40 per diluted share in the first quarter of 2021 and
net income of $42.4 million, or $1.13 per diluted
share in the first quarter of 2019
-
Adjusted EBITDA increased 45.9% from the first quarter of 2019 to a
record $143.2 million or 31.8% of revenue, compared with Adjusted
EBITDA of $76.7 million in the first quarter of 2021
(28.9% of revenue) and Adjusted EBITDA of $98.2 million, or
27.0% of revenue in the first quarter of 2019
- Ended
the quarter with $139.1 million in cash,
approximately $492.5 million of liquidity available under
the Company’s $500 million revolving credit facility, net
of $7.5 million in letters of credit, and a net debt leverage
ratio of 0.7x
“We are pleased to report another quarter of
outstanding financial results,” said Kevin Sheehan, Dave &
Buster’s Board Chair and Interim Chief Executive Officer. “We set
records for revenue, net income and Adjusted EBITDA in the first
quarter indicating a return to a normalized operating environment.
I am so proud of our teams as they have enthusiastically welcomed
back guests to our stores. We are excited about the trajectory of
our business and particularly the next few months as we begin our
“Summer of Games” roll-out that we hope will drive even more
visitation to our stores. As demonstrated by our first quarter
results, our teams continue to execute on our initiatives to drive
organic growth, improve profitability, and produce significant cash
flow from the business. We have significant upside potential and
with our continued focus on innovation, growth and value creation,
we are determined to deliver on that potential. To that end, we are
excited to add Main Event to the Dave & Buster’s team. Their
strong management team and strategic fit with our Company provide
for even more growth opportunities, for both brands, which will
benefit all stakeholders. We expect to close the transaction in a
few weeks and we will have more to say about Main Event shortly
thereafter. We are optimistic about the future and look forward to
sharing our ongoing progress in the coming quarters.”
Michael Quartieri, Dave & Buster’s Chief
Financial Officer, said: “Our record first quarter results
demonstrate our ability to drive revenue, profitability and strong
cash flow despite continued headwinds in the economy. We are
benefiting from a higher mix of amusements and a leaner operating
model. While we are still experiencing pressures from wage and
commodity inflation, our margins continued to improve as we have
offset inflationary costs with a more efficient labor model, costs
savings and efficiencies and thoughtful pricing actions. In
addition, over the past year we have reduced our net debt ratio to
0.7x and ended the first quarter of 2022 with $139 million of cash
on the balance sheet.”
First Quarter 2022 Results
Total revenue was a record $451.1 million,
an increase of 70.0% from $265.3 million in the first
quarter of 2021 and an increase of 24.1% from $363.6
million in the first quarter of 2019. Comparable store sales
increased 10.9% compared with the first quarter of 2019 (the
Company has chosen to continue reporting comparable store sales
versus 2019 in order to provide a more meaningful comparison).
Walk-in comparable store sales increased 14.7% while Special Event
comparable store sales declined 34.6% compared with the same period
in 2019. Non-comparable store revenue totaled $89.2
million compared with $58.5 million in the first quarter of
2021 and $33.9 million in the first quarter of 2019.
Operating income totaled a record $98.7
million, or 21.9% of revenue, compared with operating income
of $37.0 million, or 14.0% of revenue in the first quarter of
2021 and operating income $57.7 million, or 15.9% of revenue
in the first quarter of 2019.
Net income totaled a record $67.0 million,
or $1.35 per diluted share, compared with net income
of $19.6 million, or $0.40 per diluted share in the
first quarter of 2021 and net income of $42.4 million,
or $1.13 per diluted share in the first quarter of
2019.
Adjusted EBITDA totaled a record $143.2
million, or 31.8% of revenue, compared with adjusted EBITDA
of $76.7 million, or 28.9% of revenue in the first quarter of
2021 and adjusted EBITDA of $98.2 million, or 27.0% of revenue
in the first quarter of 2019.
Store operating income before depreciation and
amortization totaled $163.3 million, or 36.2% of revenue,
compared with store operating income before depreciation and
amortization of $90.8 million, or 34.2% of revenue in the
first quarter of 2021 and store operating income before
depreciation and amortization of $112.7 million, or 31.0% of
revenue in the first quarter of 2019.
Balance Sheet, Liquidity and Cash
Flow
The Company generated approximately $148.6
million in operating cash flow during the first quarter,
ending the quarter with $139.1 million in cash and
approximately $492.5 million of availability under
its $500 million revolving credit facility, net $7.5
million in letters of credit.
The Company’s net debt leverage ratio was
approximately 0.7x as of May 1, 2022.
Second Quarter 2022 Business
Update
The Company’s business has continued to
strengthen through the first five weeks of the second quarter,
during which comparable store sales increased 12.2% compared with
the same period in 2019. Walk-in comparable store sales increased
17.8% while Special Event comparable store sales declined 27.9% for
the five-week period compared with 2019.
Quarterly Report on Form 10-Q
Available
The Company’s Quarterly Report on Form 10-Q,
will be available at www.sec.gov and at the Company’s investor
relations website, contains a thorough review of its financial
results for the first quarter ended May 1, 2022.
Investor Conference Call and
Webcast
Management will hold a conference call to report
these results on Tuesday, June 7, 2022, at 7:30 a.m. Central Time
(8:30 a.m. Eastern Time). Participants can register for the
conference by navigating to
https://dpregister.com/sreg/10167749/f310771715. Registered
participants will receive their dial in number upon registration.
Those who are unable to pre-register can access the conference call
by dialing toll-free (877) 270-2148. The international dial-in for
unregistered participants is (412) 902-6510. A replay will be
available after the call for one year beginning at 9:30 a.m.
Central Time (10:30 a.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 2607413.
Additionally, a live and archived webcast of the conference call
will be available under the Investor Relations section
at www.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 147 venues in North
America that combine entertainment and dining and offer
customers the opportunity to “Eat Drink Play and Watch,” all in one
location. Dave & Buster’s 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. Dave & Buster’s currently has stores in
41 states, Puerto Rico, and Canada.
Forward-Looking Statements
The Company cautions that this release contains
forward-looking statements, including, without limitation,
statements relating to the impact on our business and operations of
the coronavirus pandemic. These forward-looking statements involve
risks and uncertainties and, consequently, could be affected by the
uncertain and unprecedented impact of the pandemic and new
coronavirus variants on our business and operations and the related
impact on our liquidity needs; 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; the implementation and
duration of government-mandated and voluntary shutdowns and
restrictions; the speed with which our stores safely can be
reopened and fully operated and the level of customer demand
following reopening and full operations; the economic impact of the
pandemic and related disruptions on the communities we serve; our
overall level of indebtedness; general business and economic
conditions, including as a result of the pandemic; 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, including
as a result of the pandemic; 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,
Store operating income before depreciation and amortization, and
store operating income before depreciation and amortization margin
(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:
Michael Quartieri, SVP & Chief Financial
Officer Dave & Buster’s Entertainment, Inc.(972)
813-1151michael.quartieri@daveandbusters.com
DAVE & BUSTER'S ENTERTAINMENT, INC. |
Condensed Consolidated Balance Sheets |
(in thousands) |
|
|
|
|
|
|
ASSETS |
|
May 1, 2022 |
|
January 30, 2022 |
|
|
(unaudited) |
|
(audited) |
Current assets: |
|
|
|
|
|
|
|
|
|
Cash and cash equivalents |
|
$ |
139,081 |
|
|
$ |
25,910 |
|
Other current assets |
|
|
78,059 |
|
|
|
119,661 |
|
|
|
|
|
|
Total current assets |
|
|
217,140 |
|
|
|
145,571 |
|
|
|
|
|
|
Property and equipment, net |
|
|
787,750 |
|
|
|
778,597 |
|
|
|
|
|
|
Operating lease right of use assets |
|
|
1,055,328 |
|
|
|
1,037,197 |
|
|
|
|
|
|
Intangible and other assets, net |
|
|
382,882 |
|
|
|
384,425 |
|
|
|
|
|
|
Total assets |
|
$ |
2,443,100 |
|
|
$ |
2,345,790 |
|
|
|
|
|
|
|
|
|
|
|
LIABILITIES AND STOCKHOLDERS' EQUITY |
|
|
|
|
|
|
|
|
|
Total current liabilities |
|
$ |
313,078 |
|
|
$ |
311,515 |
|
|
|
|
|
|
Operating lease liabilities |
|
|
1,294,486 |
|
|
|
1,277,539 |
|
|
|
|
|
|
Other long-term liabilities |
|
|
51,828 |
|
|
|
49,881 |
|
|
|
|
|
|
Long-term debt, net |
|
|
431,966 |
|
|
|
431,395 |
|
|
|
|
|
|
Stockholders' equity |
|
|
351,742 |
|
|
|
275,460 |
|
|
|
|
|
|
Total liabilities and stockholders' equity |
|
$ |
2,443,100 |
|
|
$ |
2,345,790 |
|
|
|
|
|
|
DAVE & BUSTER'S ENTERTAINMENT, INC. |
Consolidated Statements of Operations
(Unaudited) |
(in thousands, except share and per share
amounts) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
13 Weeks Ended |
|
13 Weeks Ended |
|
13 Weeks Ended |
|
|
May 1, 2022 |
|
May 2, 2021 |
|
May 5, 2019 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Food and beverage revenue |
|
$ |
151,912 |
|
|
33.7 |
% |
|
$ |
85,758 |
|
|
32.3 |
% |
|
$ |
148,221 |
|
|
40.8 |
% |
Amusement and other revenue |
|
|
299,189 |
|
|
66.3 |
% |
|
|
179,582 |
|
|
67.7 |
% |
|
|
215,361 |
|
|
59.2 |
% |
Total revenue |
|
|
451,101 |
|
|
100.0 |
% |
|
|
265,340 |
|
|
100.0 |
% |
|
|
363,582 |
|
|
100.0 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
Cost of food and beverage (as a percentage of food and beverage
revenue) |
|
|
43,255 |
|
|
28.5 |
% |
|
|
23,157 |
|
|
27.0 |
% |
|
|
38,754 |
|
|
26.1 |
% |
Cost of amusement and other (as a percentage of amusement and other
revenue) |
|
|
26,766 |
|
|
8.9 |
% |
|
|
16,614 |
|
|
9.3 |
% |
|
|
22,971 |
|
|
10.7 |
% |
Total cost of products |
|
|
70,021 |
|
|
15.5 |
% |
|
|
39,771 |
|
|
15.0 |
% |
|
|
61,725 |
|
|
17.0 |
% |
Operating payroll and benefits |
|
93,361 |
|
|
20.7 |
% |
|
|
50,279 |
|
|
18.9 |
% |
|
|
82,873 |
|
|
22.8 |
% |
Other store operating expenses |
|
124,425 |
|
|
27.5 |
% |
|
|
84,445 |
|
|
31.9 |
% |
|
|
106,245 |
|
|
29.2 |
% |
General and administrative expenses |
|
|
28,297 |
|
|
6.3 |
% |
|
|
17,091 |
|
|
6.4 |
% |
|
|
16,846 |
|
|
4.6 |
% |
Depreciation and amortization expense |
|
33,288 |
|
|
7.4 |
% |
|
|
35,099 |
|
|
13.2 |
% |
|
|
31,141 |
|
|
8.6 |
% |
Pre-opening costs |
|
2,997 |
|
|
0.7 |
% |
|
|
1,659 |
|
|
0.6 |
% |
|
|
7,002 |
|
|
1.9 |
% |
Total operating costs |
|
|
352,389 |
|
|
78.1 |
% |
|
|
228,344 |
|
|
86.0 |
% |
|
|
305,832 |
|
|
84.1 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating income |
|
|
98,712 |
|
|
21.9 |
% |
|
|
36,996 |
|
|
14.0 |
% |
|
|
57,750 |
|
|
15.9 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest expense, net |
|
11,391 |
|
|
2.5 |
% |
|
|
14,820 |
|
|
5.6 |
% |
|
|
4,056 |
|
|
1.1 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
Income before provision for income taxes |
|
87,321 |
|
|
19.4 |
% |
|
|
22,176 |
|
|
8.4 |
% |
|
|
53,694 |
|
|
14.8 |
% |
Provision for income taxes |
|
|
20,337 |
|
|
4.6 |
% |
|
|
2,541 |
|
|
1.0 |
% |
|
|
11,251 |
|
|
3.1 |
% |
Net income |
|
$ |
66,984 |
|
|
14.8 |
% |
|
$ |
19,635 |
|
|
7.4 |
% |
|
$ |
42,443 |
|
|
11.7 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income per share: |
|
|
|
|
|
|
|
|
|
|
|
|
Basic |
$ |
1.38 |
|
|
|
|
$ |
0.41 |
|
|
|
|
$ |
1.15 |
|
|
|
Diluted |
$ |
1.35 |
|
|
|
|
$ |
0.40 |
|
|
|
|
$ |
1.13 |
|
|
|
Weighted average shares used in per share calculations: |
|
|
|
|
|
|
|
|
|
|
|
|
Basic shares |
|
48,580,273 |
|
|
|
|
|
47,695,705 |
|
|
|
|
|
36,827,665 |
|
|
|
Diluted shares |
|
49,453,503 |
|
|
|
|
|
49,331,092 |
|
|
|
|
|
37,591,944 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other information: |
|
|
|
|
|
|
|
|
|
|
|
|
Company-owned stores at end of period |
|
145 |
|
|
|
|
|
141 |
|
|
|
|
|
127 |
|
|
|
Store operating weeks in the period |
|
1,876 |
|
|
|
|
|
1,633 |
|
|
|
|
|
1,616 |
|
|
|
Total revenue per store operating weeks in the period |
$ |
240 |
|
|
|
|
$ |
162 |
|
|
|
|
$ |
225 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
The following table sets forth a reconciliation of net income to
EBITDA and Adjusted EBITDA for the periods shown: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
13 Weeks Ended |
|
13 Weeks Ended |
|
13 Weeks Ended |
|
|
May 1, 2022 |
|
May 2, 2021 |
|
May 5, 2019 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income |
$ |
66,984 |
|
|
14.8 |
% |
|
$ |
19,635 |
|
|
7.4 |
% |
|
$ |
42,443 |
|
|
11.7 |
% |
Add back: Interest expense, net |
|
11,391 |
|
|
|
|
|
14,820 |
|
|
|
|
|
4,056 |
|
|
|
Provision for income taxes |
|
|
20,337 |
|
|
|
|
|
2,541 |
|
|
|
|
|
11,251 |
|
|
|
Depreciation and amortization expense |
|
|
33,288 |
|
|
|
|
|
35,099 |
|
|
|
|
|
31,141 |
|
|
|
EBITDA |
|
132,000 |
|
|
29.3 |
% |
|
|
72,095 |
|
|
27.2 |
% |
|
|
88,891 |
|
|
24.4 |
% |
Add back: Loss on asset disposal |
|
216 |
|
|
|
|
|
145 |
|
|
|
|
|
420 |
|
|
|
Share-based compensation |
|
|
3,555 |
|
|
|
|
|
2,971 |
|
|
|
|
|
1,825 |
|
|
|
Pre-opening costs |
|
|
2,997 |
|
|
|
|
|
1,659 |
|
|
|
|
|
7,002 |
|
|
|
Other costs (1) |
|
|
4,479 |
|
|
|
|
|
(165 |
) |
|
|
|
|
46 |
|
|
|
Adjusted EBITDA |
$ |
143,247 |
|
|
31.8 |
% |
|
$ |
76,705 |
|
|
28.9 |
% |
|
$ |
98,184 |
|
|
27.0 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) First quarter 2022 amount primarily represents costs related to
the pending acquisition of Main Event. |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
The following table sets forth a reconciliation of operating income
to store operating income before depreciation and amortization for
the periods shown: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
13 Weeks Ended |
|
13 Weeks Ended |
|
13 Weeks Ended |
|
|
May 1, 2022 |
|
May 2, 2021 |
|
May 5, 2019 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating income |
|
$ |
98,712 |
|
|
21.9 |
% |
|
$ |
36,996 |
|
|
14.0 |
% |
|
$ |
57,750 |
|
|
15.9 |
% |
Add back: General and administrative expenses |
|
28,297 |
|
|
|
|
|
17,091 |
|
|
|
|
|
16,846 |
|
|
|
Depreciation and amortization expense |
|
|
33,288 |
|
|
|
|
|
35,099 |
|
|
|
|
|
31,141 |
|
|
|
Pre-opening costs |
|
|
2,997 |
|
|
|
|
|
1,659 |
|
|
|
|
|
7,002 |
|
|
|
Store operating income before depreciation and amortization |
$ |
163,294 |
|
|
36.2 |
% |
|
$ |
90,845 |
|
|
34.2 |
% |
|
$ |
112,739 |
|
|
31.0 |
% |
Dave and Busters Enterta... (NASDAQ:PLAY)
Historical Stock Chart
From Sep 2024 to Oct 2024
Dave and Busters Enterta... (NASDAQ:PLAY)
Historical Stock Chart
From Oct 2023 to Oct 2024