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Dave & Buster’s Reports Record Second Quarter 2021 Financial Results
来源: Nasdaq GlobeNewswire / 09 9月 2021 16:05:01 America/New_York
DALLAS, Sept. 09, 2021 (GLOBE NEWSWIRE) -- Dave & Buster's Entertainment, Inc., (NASDAQ:PLAY), ("Dave & Buster's" or "the Company"), an owner and operator of entertainment and dining venues, today announced record quarterly revenues, net income, and EBITDA for its second quarter of fiscal year 2021, which ended on August 1, 2021.
The Company began the second quarter with 138 open stores, or approximately 98 percent of its total store base. As of August 1, all of the Company’s 142 stores were open, including 1 new store opened during the quarter.
Key Second Quarter 2021 Highlights
- Revenues totaled a record $377.6 million compared with $50.8 million in the second quarter of 2020 and $344.6 million in the second quarter of 2019
- Overall comparable store sales increased 3.6% compared with the same period in 2019
- Net income totaled a record $52.8 million, or $1.07 per diluted share, compared with net loss of $58.6 million, or $1.24 per share in the second quarter of 2020 and net income of $32.4 million, or $0.90 per diluted share in the second quarter of 2019
- EBITDA totaled a record $114.0 million, or 30.2% of revenues, compared with EBITDA loss of $46.0 million in the second quarter of 2020 and EBITDA of $79.0 million, or 22.9% of revenues in the second quarter of 2019
- Adjusted EBITDA totaled a record $119.2 million, or 31.6% of revenues, compared with Adjusted EBITDA loss of $38.5 million in the second quarter of 2020 and Adjusted EBITDA of $86.0 million, or 25.0% of revenues in the second quarter of 2019
- Launched new menu, completed rollout of mobile web platform and tablets, and executed new marketing strategy
- Ended the quarter with $108 million in cash and approximately $340 million of liquidity available under the Company’s $500 million revolving credit facility, net of a $150 million minimum liquidity covenant and $10 million in letters of credit
- Company has elected to redeem $55 million of 7.625% senior secured notes at 103% of principal, saving approximately $4.2 million in annualized interest
Brian Jenkins, Dave & Buster’s Chief Executive Officer, said, “Dave & Buster’s second quarter was clear evidence that the brand is back, posting record revenues and EBITDA with all 142 stores open as of the end of the quarter. The entire team has demonstrated great resilience navigating the pandemic and positioning the Company to achieve new levels of performance. Through continued execution of our strategic initiatives, including our new menu, optimized marketing, and technology investments, we are excited to move forward with a strong foundation to drive sustained profitable growth.”
Second Quarter 2021 Results
Total revenues of $377.6 million increased 642.9% from $50.8 in the second quarter of 2020 and increased 9.6% from $344.6 million in the second quarter of 2019. Comparable store sales increased 3.6% compared with the second quarter of 2019 (the Company has chosen to continue reporting comparable store sales versus 2019 in order to provide a more meaningful comparison). Non-comparable store revenue totaled $67.3 million compared with $10.4 million in the second quarter of 2020.
Operating income totaled $79.2 million, or 21.0% of revenues, compared with operating loss of $81.1 million, or (159.6)% of revenues in the second quarter of 2020 and operating income $46.2 million, or 13.4% of revenues in the second quarter of 2019.
Net income totaled $52.8 million, or $1.07 per diluted share, compared with net loss of $58.6 million, or $1.24 per share in the second quarter of 2020 and net income of $32.4 million, or $0.90 per diluted share in the second quarter of 2019.
EBITDA totaled $114.0 million, or 30.2% of revenues, compared with EBITDA loss of $46.0 million, or (90.4)% of revenues in the second quarter of 2020 and EBITDA of $79.0 million, or 22.9% of revenues in the second quarter of 2019.
Adjusted EBITDA totaled $119.2 million, or 31.6% of revenues, compared with adjusted EBITDA loss of $38.5 million, or (75.7)% of revenues in the second quarter of 2020 and adjusted EBITDA of $86.0 million, or 25.0% of revenues in the second quarter of 2019.
Store operating income before depreciation and amortization totaled $134.2 million, or 35.5% of revenues, compared with store operating loss before depreciation and amortization of $34.3 million, or (67.5)% of revenues in the second quarter of 2020 and $99.7 million, or 28.9% of revenues in the second quarter of 2019.
Balance Sheet, Liquidity and Cash Flow
The Company generated approximately $121 million in operating cash flow during the second quarter, ending the quarter with $108 million in cash and approximately $340 million of availability under its $500 million revolving credit facility, net of a $150 million minimum liquidity covenant and $10 million in letters of credit.
Total long-term debt stood at $550 million consisting of 7.625% senior secured notes maturing in 2025. As part of its ongoing capital allocation strategy, the Company has elected to redeem $55 million, or 10%, of its senior secured notes utilizing a redemption option in the Company’s October 2020 indenture agreement. Per the agreement, up to 10% of the notes may be redeemed at 103% of principal in the first twelve-month period after issuance. The Company expects to complete this redemption by September 20, 2021, resulting in annualized interest savings of approximately $4.2 million. Upon separate election, the Company may redeem an additional 10% at 103% of principal in the second twelve-month period after issuance, which commences October 27, 2021.
Third Quarter Business Update and Outlook
The Company’s business recovery has continued through the first five weeks of the third quarter, including Labor Day Monday, during which comparable store sales increased 1.3% compared with 2019.
Based on current trends, and barring any significant downturn due to the pandemic, the Company currently expects the following:
- Third quarter comparable store sales to be approximately in line with the quarter-to-date trends compared to third quarter 2019.
- Third quarter EBITDA to be significantly higher than third quarter 2019 EBITDA of $39.8 million, but with some moderation compared with the increase in the second quarter.
- A total of four new store openings during fiscal year 2021 and the relocation of one existing location.
- FY2021 capital additions (net of tenant allowances) of approximately $95 to $100 million, with approximately 49% dedicated to new stores and other operating initiatives, 14% for games, and 37% for maintenance needs.
Quarterly Report on Form 10-Q Available
The Company’s Quarterly Report on Form 10-Q, which 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 13 and 26 weeks ended August 1, 2021.
Investor Conference Call and Webcast
Management will hold a conference call to report these results today at 4:00 p.m. Central Time (5:00 p.m. Eastern Time). The conference call can be accessed over the phone by dialing (720) 543-0206 or toll-free (800) 458-4121. A replay will be available after the call for one year beginning at 7:00 p.m. Central Time (8:00 p.m. Eastern Time) and can be accessed by dialing (412) 317-6671 or toll-free (844) 512-2921; the passcode is 8867697.
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 Dallas, Texas, Dave & Buster’s Entertainment, Inc., is the owner and operator of 143 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 40 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 global spread of the novel coronavirus outbreak. These forward-looking statements involve risks and uncertainties and, consequently, could be affected by the uncertain and unprecedented impact of the coronavirus 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 duration of government-mandated and voluntary shutdowns and restrictions; the speed with which our stores safely can be reopened and the level of customer demand following reopening; the economic impact of the coronavirus and related disruptions on the communities we serve; our overall level of indebtedness; general business and economic conditions, including as a result of the coronavirus; 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 coronavirus; 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.
-- Financial Tables Follow –
DAVE & BUSTER'S ENTERTAINMENT, INC. Condensed Consolidated Balance Sheets (in thousands) ASSETS August 1, 2021 January 31, 2021 (unaudited) (audited) Current assets: Cash and cash equivalents $ 107,801 $ 11,891 Other current assets 88,154 106,980 Total current assets 195,955 118,871 Property and equipment, net 785,227 815,027 Operating lease right of use assets 1,018,558 1,037,569 Intangible and other assets, net 384,765 381,357 Total assets $ 2,384,505 $ 2,352,824 LIABILITIES AND STOCKHOLDERS' EQUITY Total current liabilities $ 308,933 $ 271,636 Operating lease liabilities 1,248,038 1,267,791 Other long-term liabilities 59,843 63,777 Long-term debt, net 537,816 596,388 Stockholders' equity 229,875 153,232 Total liabilities and stockholders' equity $ 2,384,505 $ 2,352,824 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 August 1, 2021 August 2, 2020 August 4, 2019 Food and beverage revenues $ 123,006 32.6 % $ 17,002 33.4 % $ 137,921 40.0 % Amusement and other revenues 254,632 67.4 % 33,831 66.6 % 206,678 60.0 % Total revenues 377,638 100.0 % 50,833 100.0 % 344,599 100.0 % Cost of food and beverage (as a percentage of food and beverage revenues) 33,127 26.9 % 4,659 27.4 % 36,934 26.8 % Cost of amusement and other (as a percentage of amusement and other revenues) 24,584 9.7 % 4,025 11.9 % 22,689 11.0 % Total cost of products 57,711 15.3 % 8,684 17.1 % 59,623 17.3 % Operating payroll and benefits 80,623 21.3 % 13,756 27.1 % 80,927 23.5 % Other store operating expenses 105,116 27.9 % 62,682 123.2 % 104,376 30.3 % General and administrative expenses 18,470 4.9 % 9,278 18.3 % 15,991 4.6 % Depreciation and amortization expense 34,875 9.2 % 35,160 69.2 % 32,745 9.5 % Pre-opening costs 1,676 0.4 % 2,388 4.7 % 4,723 1.4 % Total operating costs 298,471 79.0 % 131,948 259.6 % 298,385 86.6 % Operating income (loss) 79,167 21.0 % (81,115 ) -159.6 % 46,214 13.4 % Interest expense, net 13,728 3.7 % 8,163 16.0 % 4,605 1.3 % Income (loss) before provision (benefit) for income taxes 65,439 17.3 % (89,278 ) -175.6 % 41,609 12.1 % Provision (benefit) for income taxes 12,669 3.3 % (30,676 ) -60.3 % 9,253 2.7 % Net income (loss) $ 52,770 14.0 % $ (58,602 ) -115.3 % $ 32,356 9.4 % Net income (loss) per share: Basic $ 1.10 $ (1.24 ) $ 0.91 Diluted $ 1.07 $ (1.24 ) $ 0.90 Weighted average shares used in per share calculations: Basic shares 48,178,611 47,111,763 35,407,965 Diluted shares 49,229,817 47,111,763 36,015,710 Other information: Company-owned stores at end of period 142 137 130 Store operating weeks in the period 1,817 628 1,674 Total revenue per store operating weeks in the period $ 208 $ 81 $ 206 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 August 1, 2021 August 2, 2020 August 4, 2019 Net income (loss) $ 52,770 14.0 % $ (58,602 ) -115.3 % $ 32,356 9.4 % Add back: Interest expense, net 13,728 8,163 4,605 Provision (benefit) for income taxes 12,669 (30,676 ) 9,253 Depreciation and amortization expense 34,875 35,160 32,745 EBITDA 114,042 30.2 % (45,955 ) -90.4 % 78,959 22.9 % Add back: Loss on asset disposal 112 264 406 Impairment of long-lived assets and lease termination costs - 2,178 - Share-based compensation 3,187 2,734 1,907 Pre-opening costs 1,676 2,388 4,723 Other costs 135 (88 ) (13 ) Adjusted EBITDA $ 119,152 31.6 % $ (38,479 ) -75.7 % $ 85,982 25.0 % 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 August 1, 2021 August 2, 2020 August 4, 2019 Operating income (loss) $ 79,167 21.0 % $ (81,115 ) -159.6 % $ 46,214 13.4 % Add back: General and administrative expenses 18,470 9,278 15,991 Depreciation and amortization expense 34,875 35,160 32,745 Pre-opening costs 1,676 2,388 4,723 Store operating income (loss) before depreciation and amortization $ 134,188 35.5 % $ (34,289 ) -67.5 % $ 99,673 28.9 % DAVE & BUSTER'S ENTERTAINMENT, INC. Consolidated Statements of Operations (Unaudited) (in thousands, except share and per share amounts) 26 Weeks Ended 26 Weeks Ended 26 Weeks Ended August 1, 2021 August 2, 2020 August 4, 2019 Food and beverage revenues $ 208,764 32.5 % $ 80,922 38.4 % $ 286,142 40.4 % Amusement and other revenues 434,214 67.5 % 129,717 61.6 % 422,039 59.6 % Total revenues 642,978 100.0 % 210,639 100.0 % 708,181 100.0 % Cost of food and beverage (as a percentage of food and beverage revenues) 56,284 27.0 % 22,003 27.2 % 75,688 26.5 % Cost of amusement and other (as a percentage of amusement and other revenues) 41,198 9.5 % 14,753 11.4 % 45,660 10.8 % Total cost of products 97,482 15.2 % 36,756 17.4 % 121,348 17.1 % Operating payroll and benefits 130,902 20.4 % 57,493 27.3 % 163,800 23.1 % Other store operating expenses 189,561 29.4 % 158,354 75.3 % 210,621 29.8 % General and administrative expenses 35,561 5.5 % 23,841 11.3 % 32,837 4.6 % Depreciation and amortization expense 69,974 10.9 % 70,512 33.5 % 63,886 9.0 % Pre-opening costs 3,335 0.5 % 6,211 2.9 % 11,725 1.7 % Total operating costs 526,815 81.9 % 353,167 167.7 % 604,217 85.3 % Operating income (loss) 116,163 18.1 % (142,528 ) -67.7 % 103,964 14.7 % Interest expense, net 28,548 4.5 % 14,278 6.7 % 8,661 1.2 % Income (loss) before provision (benefit) for income taxes 87,615 13.6 % (156,806 ) -74.4 % 95,303 13.5 % Provision (benefit) for income taxes 15,210 2.3 % (54,660 ) -25.9 % 20,504 2.9 % Net income (loss) $ 72,405 11.3 % $ (102,146 ) -48.5 % $ 74,799 10.6 % Net income (loss) per share: Basic $ 1.51 $ (2.59 ) $ 2.07 Diluted $ 1.47 $ (2.59 ) $ 2.03 Weighted average shares used in per share calculations: Basic shares 47,937,158 39,470,874 36,117,815 Diluted shares 49,272,693 39,470,874 36,803,001 Other information: Company-owned stores at end of period 142 137 130 Store operating weeks in the period 3,450 1,461 3,290 Total revenue per store operating weeks in the period $ 186 $ 144 $ 215 The following table sets forth a reconciliation of net income to EBITDA and Adjusted EBITDA for the periods shown: 26 Weeks Ended 26 Weeks Ended 26 Weeks Ended August 1, 2021 August 2, 2020 August 4, 2019 Net income (loss) $ 72,405 11.3 % $ (102,146 ) -48.5 % $ 74,799 10.6 % Add back: Interest expense, net 28,548 14,278 8,661 Provision (benefit) for income taxes 15,210 (54,660 ) 20,504 Depreciation and amortization expense 69,974 70,512 63,886 EBITDA 186,137 28.9 % (72,016 ) -34.2 % 167,850 23.7 % Add back: Loss on asset disposal 257 417 826 Impairment of long-lived assets and lease termination costs - 13,727 - Share-based compensation 6,158 2,345 3,732 Pre-opening costs 3,335 6,211 11,725 Other costs (30 ) 59 33 Adjusted EBITDA $ 195,857 30.5 % $ (49,257 ) -23.4 % $ 184,166 26.0 % The following table sets forth a reconciliation of operating income to store operating income before depreciation and amortization for the periods shown: 26 Weeks Ended 26 Weeks Ended 26 Weeks Ended August 1, 2021 August 2, 2020 August 4, 2019 Operating income (loss) $ 116,163 18.1 % $ (142,528 ) -67.7 % $ 103,964 14.7 % Add back: General and administrative expenses 35,561 23,841 32,837 Depreciation and amortization expense 69,974 70,512 63,886 Pre-opening costs 3,335 6,211 11,725 Store operating income (loss) before depreciation and amortization $ 225,033 35.0 % $ (41,964 ) -19.9 % $ 212,412 30.0 % For Investor Relations Inquiries:
Scott Bowman, CFO
Dave & Buster’s Entertainment, Inc.
972.813.1151
scott.bowman@daveandbusters.com
