Dave & Buster’s, Inc. Reports Record Quarterly Adjusted EBITDA of $39.7 Million
Total revenues increased 10% to $163.5 million in the first quarter of 2012, compared to $148.6 million in the first quarter of 2011. The year-over-year revenue increase was primarily driven by a $16.1 million increase in revenues from non-comparable stores.
Dave & Buster's, Inc., a leading operator of high volume entertainment/dining complexes, today announced results for its first quarter ended April 29, 2012.
“We achieved record Adjusted EBITDA results, primarily fueled by the stores we opened in 2011 and early 2012”
Total revenues increased 10% to $163.5 million in the first quarter of 2012, compared to $148.6 million in the first quarter of 2011. The year-over-year revenue increase was primarily driven by a $16.1 million increase in revenues from non-comparable stores. Revenues at our comparable stores were essentially flat compared to the first quarter of 2011. Across all stores, Food and Beverage revenues increased $4.9 million or 6.6% and Amusements and Other revenues increased $10 million or 13.4% compared to the first quarter of 2011.
Adjusted EBITDA increased 18.0% to $39.7 million in the first quarter of 2012 versus $33.6 million in the first quarter of fiscal 2011.
“We achieved record Adjusted EBITDA results, primarily fueled by the stores we opened in 2011 and early 2012,” said Steve King, CEO of Dave & Buster's. “While the exceptionally mild winter across the country hurt our comparable store sales, our margin enhancing initiatives enabled us to deliver exceptional results.”
| DAVE & BUSTER’S, INC. | ||||||
| Condensed Consolidated Balance Sheets | ||||||
(in thousands) | ||||||
| ASSETS | April 29, 2012 | January 29, 2012 | ||||
| (unaudited) | (audited) | |||||
| Current assets: | ||||||
| Cash and cash equivalents | $ | 58,860 | $ | 33,684 | ||
| Other current assets | 38,463 | 41,310 | ||||
| Total current assets | $ | 97,323 | $ | 74,994 | ||
| Property and equipment, net | 313,720 | 323,342 | ||||
| Intangible and other assets, net | 379,670 | 380,326 | ||||
| Total assets | $ | 790,713 | $ | 778,662 | ||
| LIABILITIES AND STOCKHOLDERS' EQUITY | ||||||
| Total current liabilities | $ | 87,618 | $ | 86,643 | ||
| Other long-term liabilities | 104,975 | 104,987 | ||||
| Long-term debt, less current liabilities, net unamortized discount | 344,889 | 345,167 | ||||
| Stockholders' equity | 253,231 | 241,865 | ||||
| Total liabilities and stockholders' equity | $ | 790,713 | $ | 778,662 | ||
| DAVE & BUSTER’S, INC. | ||||||||||||||
| Consolidated Statements of Operations | ||||||||||||||
(dollars in thousands) | ||||||||||||||
(unaudited) | ||||||||||||||
| 13 Weeks Ended | 13 Weeks Ended | |||||||||||||
| April 29, 2012 | May 1, 2011 | |||||||||||||
| Food and beverage revenues | $ | 79,144 | 48.4 | % | $ | 74,262 | 50.0 | % | ||||||
| Amusement and other revenues | 84,330 | 51.6 | % | 74,341 | 50.0 | % | ||||||||
| Total revenues | 163,474 | 100.0 | % | 148,603 | 100.0 | % | ||||||||
| Cost of products | 30,954 | 18.9 | % | 28,299 | 19.0 | % | ||||||||
| Store operating expenses | 85,491 | 52.3 | % | 79,371 | 53.5 | % | ||||||||
| General and administrative expenses | 9,017 | 5.5 | % | 8,811 | 5.9 | % | ||||||||
| Depreciation and amortization | 14,795 | 9.1 | % | 13,070 | 8.8 | % | ||||||||
| Pre-opening costs | 150 | 0.1 | % | 740 | 0.5 | % | ||||||||
| Total operating expenses | 140,407 | 85.9 | % | 130,291 | 87.7 | % | ||||||||
| Operating income | 23,067 | 14.1 | % | 18,312 | 12.3 | % | ||||||||
| Interest expense, net | 8,342 | 5.1 | % | 8,243 | 5.5 | % | ||||||||
| Income before income tax provision | 14,725 | 9.0 | % | 10,069 | 6.8 | % | ||||||||
| Income tax provision | 3,741 | 2.3 | % | 3,351 | 2.3 | % | ||||||||
| Net income | $ | 10,984 | 6.7 | % | $ | 6,718 | 4.5 | % | ||||||
| Other information: | ||||||||||||||
| Company-owned and operated stores open at end of period (1) | 59 | 57 | ||||||||||||
| 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 | |||||||||||||
| April 29, 2012 | May 1, 2011 | |||||||||||||
| Total net income | $ | 10,984 | $ | 6,718 | ||||||||||
| Add back: Interest expense, net | 8,342 | 8,243 | ||||||||||||
| Income tax provision | 3,741 | 3,351 | ||||||||||||
| Depreciation and amortization | 14,795 | 13,070 | ||||||||||||
| EBITDA | 37,862 | 31,382 | ||||||||||||
| Add back: Loss on asset disposal | 336 | 428 | ||||||||||||
| Share-based compensation | 292 | 360 | ||||||||||||
| Currency transaction gain | (47 | ) | (195 | ) | ||||||||||
| Pre-opening costs | 150 | 740 | ||||||||||||
Reimbursement of affiliate expenses | 201 | 65 | ||||||||||||
Deferred amusement revenue and ticket redemption liability adjustments | 779 | 618 | ||||||||||||
| Transaction and other costs | 101 | 237 | ||||||||||||
| Adjusted EBITDA (2) | $ | 39,674 | $ | 33,635 | ||||||||||
NOTE
(1) The store count as of May 1, 2011, includes a store in Dallas, Texas, which was permanently closed on May 2, 2011.
(2) EBITDA, a non-GAAP measure, is defined as net income (loss) before income tax provision (benefit), interest expense (net) and depreciation and amortization. Adjusted EBITDA, also a non-GAAP measure, is defined as EBITDA plus (gain) loss on asset disposal, share-based compensation expense, pre-opening costs, reimbursement of affiliate expenses, and other non-cash or non-recurring charges. The company believes that EBITDA and Adjusted EBITDA (collectively, “EBITDA – Based Measures”) provide useful information to debt holders regarding the Company’s operating performance and its capacity to incur and service debt and fund capital expenditures. The Company believes that the EBITDA – Based Measures are used by many investors, analysts and rating agencies as a measure of performance. In addition, Adjusted EBITDA is approximately equal to “Consolidated EBITDA” as defined in our senior secured credit facility and indentures relating to the Company’s senior notes. Neither of the EBITDA – Based Measures is defined by GAAP and neither should be considered in isolation or as an alternative to other financial data prepared in accordance with GAAP or as an indicator of the Company’s operating performance. EBITDA and Adjusted EBITDA as defined in this release may differ from similarly titled measures presented by other companies.
