DALLAS -- Dave & Buster's Inc. first-quarter profit climbed more than 60%, fueled by better-than-expected performance from its newest stores.
The operator of big box entertainment-dining complexes saw profit for the quarter, ended April 29, rise to nearly $11 million from $6.7 million in the comparable 2011 period.
Total revenues increased 10% to $163.5 million in the first quarter, an increase over $148.6 million a year earlier. The company said the year-over-year revenue increase was primarily driven by a $16.1 million increase in revenues from new stores. Revenues at Dave & Buster's existing stores were essentially flat versus the first quarter of 2011.
Across all stores, food and beverage revenues increased 6.6% to $4.9 million. Amusements and "other" revenues grew $10 million, or 13.4%, over last year's first quarter.
Dave & Buster's posted record adjusted earnings before interest, taxes, depreciation and amortization (EBITDA) of $39.7 million in the recent quarter, up 18% from $33.6 million a year earlier.
"While the exceptionally mild winter across the country hurt our comparable store sales, our margin-enhancing initiatives enabled us to deliver exceptional results," said Steve King, chief executive of Dave & Buster's.
Dave & Buster's currently owns and operates 59 stores in the U.S. and Canada. The company, which has alternated from a private to a publicly traded company several times during its 30-year history, is preparing to go public yet again. | SEE STORY