Source: Dave & Buster's Inc. | Released June 17, 2013
Achieves First Quarter Adjusted EBITDA of $42.9 million on Comparable Sales Growth of 1.8%
DALLAS -- (BUSINESS WIRE) -- Dave & Buster's Inc., a leading operator of high-volume entertainment and dining complexes, announced financial results for its first quarter of 2013, ended May 5, 2013.
"We had a solid start to the year during the first quarter as growth in adjusted EBITDA outpaced our same-store sales gain while newer stores contributed positively to our overall financial results"
Highlights from the first quarter 2013 compared to the first quarter 2012 include:
» Comparable store sales increased 1.8%.
» Total revenues increased 2.9% to $168.2 million from $163.5 million.
» Adjusted EBITDA* increased 8.2% to $42.9 million from $39.7 million.
» As a percentage of total revenues, Adjusted EBITDA increased approximately 130 basis points to 25.5%.
* A reconciliation of EBITDA and adjusted EBITDA to net income, the most directly comparable financial measure presented in accordance with GAAP, is set forth in the attachment to this release.
"We had a solid start to the year during the first quarter as growth in adjusted EBITDA outpaced our same-store sales gain while newer stores contributed positively to our overall financial results," said Steve King, chief executive officer of Dave & Buster's Inc. "As the premier national dining and entertainment venue where guests can enjoy great food and beverages, play exciting games, and watch their favorite sports programming, we pride ourselves on being an attractive option for walk-in guests, parties and corporate functions and were therefore pleased to have grown each of these channels during the quarter. From a profitability standpoint, we leveraged expenses at the store-level and improved our key barometers of performance, adjusted EBITDA and adjusted EBITDA margin, while also investing in our business as we prepare for more rapid new unit growth."
King continued, "Our plans for 2013 include updating some of our facilities as well as building larger and smaller format stores in markets across the country. We are slated to complete seven remodeling projects this year that will serve to reinforce our strong appeal with contemporary designs and enhanced sports viewing areas. We are also on track to open four to six new stores this year. We firmly believe that the dynamic, high-energy and social experience we offer at Dave & Buster's makes us a compelling destination for guests seeking both a dining and entertainment experience and are confident in our opportunity to grow sales and profits at existing locations while expanding our store footprint."
Review of First Quarter 2013 Operating Results
Total revenues increased 2.9% to $168.2 million in the first quarter of 2013 compared to $163.5 million in the first quarter of 2012. Across all stores, Food and Beverage revenues increased 2.2% and Amusements and Other revenues increased 3.5%. Due to the 53rd week in fiscal 2012, there is a one-week calendar shift in the comparison of the fiscal first quarter of 2013 to the fiscal first quarter of 2012. The Company estimates that this calendar shift, which resulted in one less high-volume "winter week" during the first quarter of 2013, negatively impacted total revenues by $1.4 million.
Comparable store sales, which has been adjusted to reflect the one-week calendar shift, increased 1.8% in the first quarter of 2013. The increase was driven by a 1.8% increase in comparable walk-in sales and a 1.6% increase in comparable special events business sales. Non-comparable store revenues increased $3.9 million during the first quarter.
Adjusted EBITDA increased 8.2% to $42.9 million in the first quarter of 2013 from $39.7 million in last year's first quarter. Exclusive of the one-week calendar shift in the quarter, Adjusted EBITDA is estimated to have increased by 10.7 %. As a percentage of total revenues, Adjusted EBITDA increased approximately 130 basis points to 25.5%.
The Company anticipates adding four to six new stores in 2013. There were no stores opened in the first quarter. One new store is expected to open late in the second quarter, with the balance scheduled to open throughout the second half of the year.
Total capital expenditures are estimated at $95 million to $105 million and include new store development, seven remodeling projects, new games and maintenance capital.
See Condensed Consolidated Balance sheets
About Dave & Buster's Inc.
Founded in 1982 and headquartered in Dallas, TX, Dave & Buster's is the premier national owner and operator of 61 high-volume venues that offer interactive entertainment options for adults and families, such as skill/sports-oriented redemption games and technologically advanced video and simulation games, combined with a full menu of high quality food and beverages. Dave & Buster's currently has stores in 26 states and Canada. For additional information on Dave & Buster's, please visit www.daveandbusters.com.
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