Dave Busters Entertainment Inc Announces Q1 And FY2015 Results Revenue Rises On Both Counts

PRESS RELEASE

DALLAS, March 29, 2016 (GLOBE NEWSWIRE) --Dave & Buster's Entertainment Inc., (NASDAQ:PLAY), ("Dave & Buster's" or "the "Company"), an owner and operator of dining and entertainment venues, today announced financial results for its fourth quarter and full year 2015, which ended on January 31, 2016. The Company also issued guidance for the full year 2016.

Key highlights from the fourth quarter 2015 compared to the fourth quarter 2014 include:

» Total revenues increased 13.1% to $234.2 million from $207.1 million.

» Comparable store sales increased 6.0% vs. a 10.5% increase in last year's fourth quarter.

» Opened four stores compared to three new stores in the fourth quarter 2014.

» Adjusted EBITDA*, a non-GAAP measure, increased 28.9% to $66.4 million from $51.5 million. As a percentage of total revenues, Adjusted EBITDA increased approximately 340 basis points to 28.3%.

» Net income increased 56.5% to $23.0 million, or $0.53 per diluted share, compared to net income of $14.7 million, or $0.34 per diluted share, in the fourth quarter 2014.

»Pro forma net income**, a non-GAAP measure, increased 61.4% to $22.8 million, or $0.53 per diluted share, compared to pro forma net income of $14.1 million, or $0.34 per diluted share, in the same period last year.

Key highlights from the full year 2015 compared to the full year 2014 include:

» Total revenues increased 16.1% to $867.0 million from $746.8 million.

» Comparable store sales increased 8.9%.

» Opened 10 stores, including one relocation, compared to eight stores in fiscal 2014.

» Adjusted EBITDA*, a non-GAAP measure, increased 30.5% to $215.4 million from $165.1 million. As a percentage of total revenues, Adjusted EBITDA increased approximately 270 basis points to 24.8%.

» Net income increased 680.8% to $59.6 million, or $1.39 per diluted share, compared to net income of $7.6 million, or $0.21 per diluted share, for the full year 2014.

» Pro forma net income**, a non-GAAP measure, increased 98.2% to $65.0 million, or $1.52 per diluted share, compared to $32.8 million, or $0.78 per diluted share, for the full year 2014.

* A reconciliation of 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.
** A reconciliation of Pro forma net income to Net income, the most directly comparable financial measure presented in accordance with GAAP, is set forth in the attachment to this release.

"Dave & Buster's capped off an incredible year of record results with a fourth quarter performance that exceeded our expectations. Quarterly comparable store sales rose 6.0%, inclusive of an estimated negative 110 basis point impact related to Winter Storm Jonas and despite lapping a 10.5% gain from the prior year. Our brand has now surpassed the competitive benchmark in each of the last 15 quarters while on a two-year stacked basis delivered comparable trends of 16.5%. We also set a fourth quarter record for Adjusted EBITDA and Margins through operating leverage and cost control discipline. This was made possible by capitalizing on the ongoing sales shift to our higher-margin amusement category while benefitting from industry-leading growth in our food and beverage categories," said Steve King, Chief Executive Officer.

"Looking ahead, our key areas of focus are new store development, comparable store sales growth, and further margin improvement. Last year we drove higher guest satisfaction scores in overall hospitality and within each area of enjoyment -- food and beverages, amusement, and sports viewing. We intend to build upon those achievements in 2016 through our commitment to innovation that keeps our brand fresh, entertaining and differentiated," King continued.

"We are projecting nine to ten store openings in 2016, including three scheduled to open in the first quarter in Rochester, New York; El Paso, Texas; and Capitol Heights, Maryland. By-year end, we will operate approximately 90 stores compared to a potential of at least 200 stores in North America. Our 'one of a kind' dining, entertainment, and sports viewing venue has demonstrated incredible domestic appeal and is far from saturated but we have added another layer of growth to our business model through international licensing development. We look forward to the first store opening in the Middle East slated for 2017," King concluded.

Click here to see full report and condensed consolidated balance sheets.