ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
(State of Incorporation) |
(I.R.S. Employer ID) | |
( | ||
(Address of principal executive offices) (Zip Code) |
(Registrant’s telephone number) |
Title of each class |
Trading Symbol(s) |
Name of each exchange on which registered | ||
☒ | Accelerated filer | ☐ | ||||
Non-accelerated filer | ☐ | Smaller reporting company | ||||
Emerging Growth Company |
Page |
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PART I |
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ITEM 1. | 3 | |||||
ITEM 1A. | 15 | |||||
ITEM 1B. | 29 | |||||
ITEM 2. | 30 | |||||
ITEM 3. | 31 | |||||
ITEM 4. | 31 | |||||
PART II |
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ITEM 5. | 32 | |||||
ITEM 6. | 33 | |||||
ITEM 7. | 34 | |||||
ITEM 7A. | 51 | |||||
ITEM 8. | 52 | |||||
ITEM 9. | 52 | |||||
ITEM 9A. | 52 | |||||
ITEM 9B. | 52 | |||||
PART III |
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ITEM 10. | 53 | |||||
ITEM 11. | 53 | |||||
ITEM 12. | 53 | |||||
ITEM 13. | 53 | |||||
ITEM 14. | 53 | |||||
PART IV |
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ITEM 15. | 54 | |||||
58 |
ITEM 1. |
Business |
• | Offer novel food & drink to bring people together. one-of-a-kind |
• | Offer the latest entertainment to enjoy together. eye-catching appearance, virtual reality features, association with recognizable brands or the fact that they cannot be easily replicated at home. We also intend to extend our programming capabilities by offering more curated content and creating a calendar of ongoing and one-time events leveraging our investments in the best and latest audio-visual technology. |
• | Align team and integrated experience. in-store experience. We will also refresh our commitment to serving customers through an improved hiring, training and service model, and our team will help create fun and bring our new strategies to life. |
• | Drive customer engagement. |
Male |
Female |
Total |
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White |
23.9 | % | 22.6 | % | 46.5 | % | ||||||
Black or African American |
14.4 | % | 11.7 | % | 26.1 | % | ||||||
Hispanic |
12.3 | % | 9.6 | % | 21.9 | % | ||||||
Asian/American Indian/Pacific Islander |
2.1 | % | 1.4 | % | 3.5 | % | ||||||
Two or more races |
1.2 | % | 0.8 | % | 2.0 | % | ||||||
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Total |
53.9 | % | 46.1 | % | 100.0 | % | ||||||
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• | adopted an enterprise Human Rights policy, which may be found on our Company website; |
• | formed a Human Resources Steering Committee comprised of leaders from different levels and departments in our organization that is specifically charged with stewardship of, and ensuring accountability to, our diversity, equity and inclusion strategy and goals; |
• | set goals for improving representation of women and team members who are black, indigenous, or people of color in our corporate and field leadership, and began providing quarterly updates to our Board of Directors on our progress in meeting our goals; and |
• | improved representation of women in our internal governance committees by more than 50%, and increased representation of team members who are black, indigenous, or people of color on these same committees by nearly 100%. |
• | worked together to adhere to all local, state and federal health guidelines and requirements in setting capacity limits, hours of operation, determining what service and product offerings we were able to provide, establishing testing and close contact tracing protocols, and setting other operational policies; |
• | implemented health and temperature checks before each shift and required team members to wear protective masks and gloves; |
• | were among the first casual dining brands to require all customers to wear masks following the onset of the pandemic; |
• | assigned team members to cleaning and sanitizing our stores full-time during all operating hours; |
• | added hand sanitizer stations at each store and socially distanced all tables, games, and line queues; and |
• | for most of fiscal 2020, the majority of our corporate team members worked remotely. |
ITEM 1A. |
Risk Factors |
• | the unprecedented impact on our business, operations and liquidity; |
• | our ability to obtain additional waivers or amendments, and thereafter continue to satisfy covenant requirements (even as they may be amended), under our amended credit agreement and derivative contract payables; |
• | our ability to access other funding sources; |
• | the duration of government-mandated and voluntary shutdowns, and operating restrictions on our business once our stores can re-open; |
• | the level of customer demand following re-opening; |
• | the economic impact of COVID-19 and related disruptions on the communities we serve; |
• | our overall level of indebtedness; |
• | further impairments of our long-lived assets or impairment of goodwill or other intangibles; and |
• | management’s ability to estimate future performance of our business. |
• | increase gross sales and operating profits at existing stores with food, beverage, game and entertainment options desired by our customers; |
• | evolve our marketing and branding strategies to appeal to our customers; |
• | innovate and implement technology initiatives to provide a unique digital customer experience; |
• | identify adequate sources of capital to fund and finance strategic initiatives; |
• | grow and expand operations; and |
• | improve the speed and quality of our service. |
• | making it more difficult for us to satisfy our obligations with respect to our debt, and any failure to comply with the obligations under our debt instruments, including restrictive covenants, could result in an event of default under the agreements governing our indebtedness increasing our vulnerability to general economic and industry conditions, including as a result of disruption caused by the global COVID-19 pandemic; |
• | requiring a substantial portion of our cash flow from operations to be dedicated to the payment of obligations with respect to our debt, thereby reducing our ability to use our cash flow to fund our operations, lease payments, capital expenditures, selling and marketing efforts, product development, future business opportunities and other purposes; |
• | exposing us to the risk of increased interest rates as some of our borrowings are at variable rates; |
• | limiting our ability to obtain additional financing for working capital, capital expenditures, product development, debt service requirements, strategic acquisitions, and general corporate or other purposes; and |
• | limiting our ability to plan for, or adjust to, changing market conditions and placing us at a competitive disadvantage compared to our competitors who may be less highly leveraged. |
• | incur or guarantee additional indebtedness or issue certain disqualified or preferred stock; |
• | pay dividends or make other distributions on, or redeem or purchase any equity interests or make other restricted payments; |
• | make certain acquisitions or investments; |
• | create or incur liens; |
• | transfer or sell assets; |
• | incur restrictions on the payment of dividends or other distributions from our restricted subsidiaries; |
• | alter the business that we conduct; |
• | enter into transactions with affiliates; and |
• | consummate a merger or consolidation or sell, assign, transfer, lease or otherwise dispose of all or substantially all our assets. |
• | the Fair Labor Standards Act and other federal, state and local laws and regulations that govern employment practices and working conditions, including minimum wage rates, wage and hour practices, gratuities, overtime, labor practices, various family leave mandates, discrimination and harassment, immigration, workplace safety and other areas; |
• | the Americans with Disabilities Act and similar state laws that give civil rights protections to individuals with disabilities in the context of employment, public accommodations and other areas; |
• | the Patient Protection and Affordable Care Act as amended by the Health Care and Education Affordability Reconciliation Act of 2010 (“PPACA”) and uncertainties surrounding future changes to or replacement of our health insurance system; |
• | preparation, sale and labeling of food, including the federal regulations of the Food and Drug Administration, which oversees the safety of the entire food system, including inspection and mandatory food recalls, menu labeling and nutritional content, and additional requirements in certain states and local jurisdictions; |
• | environmental laws and regulations governing, among other things, discharges of pollutants into the air and water as well as the presence, handling, release and disposal of and exposure to hazardous substances; and |
• | other environmental matters, such as climate change, the reduction of greenhouse gases, water consumption and animal health and welfare. |
• | restrictions on the ability of our stockholders to fill a vacancy on the Board of Directors; |
• | our ability to issue preferred stock with terms that the Board of Directors may determine, without stockholder approval, which could be used to significantly dilute the ownership of a hostile acquirer; |
• | the inability of our stockholders to call a special meeting of stockholders; |
• | specify that special meetings of our stockholders can be called only upon the request of a majority of our Board of Directors or our Chief Executive Officer; |
• | the absence of cumulative voting in the election of directors, which may limit the ability of minority stockholders to elect directors; and |
• | advance notice requirements for stockholder proposals and nominations, which may discourage or deter a potential acquirer from soliciting proxies to elect a particular slate of directors or otherwise attempting to obtain control of us. |
• | any derivative action or proceeding brought on our behalf; |
• | any action asserting a claim of breach of a fiduciary duty owed by any of our directors, officers, employees or stockholders to our company or our stockholders; |
• | any action asserting a claim arising pursuant to any provision of the DGCL or as to which the DGCL confers jurisdiction on the Court of Chancery of the State of Delaware; or |
• | any action asserting a claim arising pursuant to any provision of our certificate of incorporation or bylaws (in each case, as they may be amended from time to time) or governed by the internal affairs doctrine. |
ITEM 1B. |
Unresolved Staff Comments |
ITEM 2. |
Properties |
Location |
Total |
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Alabama |
2 | |||
Alaska |
1 | |||
Arizona |
4 | |||
Arkansas |
2 | |||
California |
16 | |||
Colorado |
2 | |||
Connecticut |
2 | |||
Florida |
8 | |||
Georgia |
4 | |||
Hawaii |
1 | |||
Idaho |
1 | |||
Illinois |
4 | |||
Indiana |
2 | |||
Kansas |
3 | |||
Kentucky |
2 | |||
Louisiana |
1 | |||
Maryland |
5 | |||
Massachusetts |
3 | |||
Michigan |
3 | |||
Minnesota |
2 | |||
Missouri |
1 | |||
Nebraska |
1 | |||
Nevada |
1 | |||
New Hampshire |
1 | |||
New Jersey |
3 | |||
New Mexico |
1 | |||
New York |
11 | |||
North Carolina |
4 | |||
Ohio |
6 | |||
Oklahoma |
2 | |||
Oregon |
1 | |||
Pennsylvania |
7 | |||
Rhode Island |
1 | |||
South Carolina |
3 | |||
Tennessee |
4 | |||
Texas |
13 | |||
Utah |
1 | |||
Virginia |
4 | |||
Washington |
1 | |||
Wisconsin |
3 | |||
Puerto Rico |
1 | |||
Ontario, Canada |
2 | |||
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Total |
140 |
ITEM 3. |
Legal Proceedings |
ITEM 4. |
Mine Safety Disclosures |
ITEM 5. |
Market for Registrant’s Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities |
ITEM 6. |
Selected Financial Data |
Fiscal Year Ended |
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January 31, 2021 |
February 2, 2020 |
February 3, 2019 |
February 4, 2018 |
January 29, 2017 |
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Statement of Operations Data: |
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Total revenues |
$ | 436,512 | $ | 1,354,691 | $ | 1,265,301 | $ | 1,139,791 | $ | 1,005,158 | ||||||||||
Operating income (loss) |
(252,612 | ) | 148,079 | 161,000 | 165,772 | 150,516 | ||||||||||||||
Net income (loss) |
(206,974 | ) | 100,263 | 117,221 | 120,949 | 90,795 | ||||||||||||||
Balance sheet data (as of end of period): |
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Cash and cash equivalents |
11,891 | 24,655 | 21,585 | 18,795 | 20,083 | |||||||||||||||
Working capital (deficit) (1) |
(152,765 | ) | (211,888 | ) | (153,297 | ) | (112,918 | ) | (102,193 | ) | ||||||||||
Property and equipment, net |
815,027 | 900,637 | 805,337 | 726,455 | 606,865 | |||||||||||||||
Total assets |
2,352,824 | 2,370,139 | 1,273,187 | 1,197,030 | 1,052,733 | |||||||||||||||
Total debt, net |
596,388 | 647,689 | 393,469 | 366,249 | 264,128 | |||||||||||||||
Stockholders’ equity |
153,232 | 169,650 | 387,837 | 421,646 | 439,452 | |||||||||||||||
Other data: |
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Capital expenditures |
$ | 83,016 | $ | 228,091 | $ | 216,286 | $ | 219,901 | $ | 180,577 | ||||||||||
Company-owned stores at end of period |
140 | 136 | 121 | 106 | 92 | |||||||||||||||
Stores closed during period |
2 | 1 | — | — | — | |||||||||||||||
Cash dividends declared per share |
$ | — | $ | 0.62 | $ | 0.30 | $ | — | $ | — | ||||||||||
Net income (loss) per share of common stock: |
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Basic |
$ | (4.75 | ) | $ | 3.00 | $ | 3.00 | $ | 2.93 | $ | 2.16 | |||||||||
Diluted |
$ | (4.75 | ) | $ | 2.94 | $ | 2.93 | $ | 2.84 | $ | 2.10 | |||||||||
Weighted average number of shares outstanding: |
||||||||||||||||||||
Basic |
43,549,887 | 33,450,217 | 39,047,106 | 41,276,314 | 41,951,770 | |||||||||||||||
Diluted |
43,549,887 | 34,099,378 | 39,975,122 | 42,583,009 | 43,288,592 |
(1) |
Defined as total current assets minus total current liabilities. |
ITEM 7. |
Management’s Discussion and Analysis of Financial Condition and Results of Operations |
• | reduced expenses broadly, including by furloughing all of our hourly store team members and approximately 94% of store management personnel, on or about March 19, 2020, while enacting 12-week salary reductions for remaining managers. In addition, effective March 24, 2020, the Company furloughed all but a small team of essential corporate and administrative staff, enacted 12-week salary reductions ranging from 10% to 50%, and suspended all cash board fees through the remainder of fiscal 2020. As stores reopen with a reduced workforce, a portion of the furloughed personnel at our stores and corporate office have returned to work; |
• | canceled or delayed all non-essential planned capital spending for the remainder of fiscal 2020; |
• | halted or delayed planned store openings after our one store opening in Chattanooga, TN, on March 16, 2020, except five new stores which commenced construction prior to the pandemic that opened during the third and fourth quarter; |
• | stopped work on future planned sites and commenced negotiations to terminate related contracts, as applicable; |
• | suspended our share repurchase program and declaration of dividends; |
• | negotiated amendments to our credit facility resulting in an extension of the maturity date of our revolving credit facility to August 17, 2024; |
• | issued $550,000 of senior secured notes, maturing November 1, 2025; |
• | sold shares of our common stock, which generated gross proceeds of approximately $185,600; and |
• | negotiated with our landlords, vendors, and other business partners to temporarily reduce our lease and contract payments and obtain other concessions. During fiscal 2020, a total of 126 rent relief agreements related to our operating locations and corporate headquarters were initially executed, which generally provide for full deferral for three months beginning April 2020, with partial deferral continuing for periods of up to six months, at approximately 50% of those locations. As the pandemic continued to impact our business into the fourth quarter, the Company renewed negotiations with the majority of these landlords in order to provide additional rent relief, generally seeking to push out or extend the terms of deferral pay back periods and/or provide rent relief beyond the periods in the initial agreements. As of the end of fiscal 2020, the Company had executed 17 of these additional rent relief agreements. |
Fiscal Year Ended |
Fiscal Year Ended |
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January 31, 2021 |
February 2, 2020 |
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Food and beverage revenues |
$ | 159,501 | 36.5 | % | $ | 563,576 | 41.6 | % | ||||||||
Amusement and other revenues |
277,011 | 63.5 | 791,115 | 58.4 | ||||||||||||
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Total revenues |
436,512 | 100.0 | 1,354,691 | 100.0 | ||||||||||||
Cost of food and beverage (as a percent of food and beverage revenues) |
45,207 | 28.3 | 148,196 | 26.3 | ||||||||||||
Cost of amusement and other (as a percent of amusement and other revenues) |
29,698 | 10.7 | 85,115 | 10.8 | ||||||||||||
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Total cost of products |
74,905 | 17.2 | 233,311 | 17.2 | ||||||||||||
Operating payroll and benefits |
117,475 | 26.9 | 322,970 | 23.8 | ||||||||||||
Other store operating expenses |
299,464 | 68.6 | 429,431 | 31.8 | ||||||||||||
General and administrative expenses |
47,215 | 10.8 | 69,469 | 5.1 | ||||||||||||
Depreciation and amortization expense |
138,789 | 31.8 | 132,460 | 9.8 | ||||||||||||
Pre-opening costs |
11,276 | 2.6 | 18,971 | 1.4 | ||||||||||||
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|
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Total operating costs |
689,124 | 157.9 | 1,206,612 | 89.1 | ||||||||||||
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Operating income (loss) |
(252,612 | ) | (57.9 | ) | 148,079 | 10.9 | ||||||||||
Interest expense, net |
36,890 | 8.4 | 20,937 | 1.5 | ||||||||||||
Loss on debt refinance |
904 | 0.2 | — | — | ||||||||||||
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Income (loss) before provision (benefit) for income taxes |
(290,406 | ) | (66.5 | ) | 127,142 | 9.4 | ||||||||||
Provision (benefit) for income taxes |
(83,432 | ) | (19.1 | ) | 26,879 | 2.0 | ||||||||||
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|
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Net income (loss) |
$ | (206,974 | ) | (47.4 | )% | $ | 100,263 | 7.4 | % | |||||||
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Change in comparable store sales |
(70.2 | )% | (2.6 | )% | ||||||||||||
Company-owned stores at end of period (1) |
140 | 136 | ||||||||||||||
Comparable stores at end of period (1) |
114 | 99 |
(1) |
As of January 31, 2021, 107 of our 140 stores were open and 84 of our 114 comparable stores were open. Our total and comparable store counts as of the end of fiscal 2020 exclude a store in Chicago, Illinois and a store in Houston, Texas which are at or near the end of their respective lease terms which the Company has decided not to re-open. Our store in Duluth (Atlanta), Georgia permanently closed on March 3, 2019 as we did not exercise the renewal option and is excluded from fiscal 2019 store counts and comparable store sales. We opened six new stores during fiscal 2020 and 16 new stores during fiscal 2019. |
Fiscal Year Ended |
Fiscal Year Ended |
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January 31, 2021 |
February 2, 2020 |
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Net income (loss) |
$ | (206,974 | ) | -47.4 | % | $ | 100,263 | 7.4 | % | |||||||
Interest expense, net |
36,890 | 20,937 | ||||||||||||||
Loss on debt refinance |
904 | — | ||||||||||||||
Provision (benefit) for income tax |
(83,432 | ) | 26,879 | |||||||||||||
Depreciation and amortization expense |
138,789 | 132,460 | ||||||||||||||
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EBITDA |
(113,823 | ) | -26.1 | % | 280,539 | 20.7 | % | |||||||||
Loss on asset disposal |
577 | 1,813 | ||||||||||||||
Impairment of long-lived assets and lease termination costs |
13,727 | — | ||||||||||||||
Share-based compensation |
6,985 | 6,857 | ||||||||||||||
Pre-opening costs |
11,276 | 18,971 | ||||||||||||||
Other costs (1) |
(15 | ) | 42 | |||||||||||||
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Adjusted EBITDA |
$ | (81,273 | ) | -18.6 | % | $ | 308,222 | 22.8 | % | |||||||
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|
(1) |
Primarily represents costs related to currency transaction (gains) or losses. |
Fiscal Year Ended |
Fiscal Year Ended |
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January 31, 2021 |
February 2, 2020 |
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Operating income (loss) |
$ | (252,612 | ) | -57.9 |
% | $ | 148,079 | 10.9 | % | |||||||
General and administrative expenses |
47,215 | 69,469 | ||||||||||||||
Depreciation and amortization expense |
138,789 | 132,460 | ||||||||||||||
Pre-opening costs |
11,276 | 18,971 | ||||||||||||||
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|
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Store Operating Income Before Depreciation and Amortization |
$ | (55,332 | ) | -12.7 |
% | $ | 368,979 | 27.2 | % | |||||||
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Fiscal Year Ended |
Fiscal Year Ended |
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January 31, 2021 |
February 3, 2020 |
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New store and operating initiatives |
$ | 51,572 | $ | 183,897 | ||||
Games |
8,795 | 19,749 | ||||||
Maintenance capital |
3,266 | 27,351 | ||||||
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Total capital additions |
$ | 63,633 | $ | 230,997 | ||||
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Payments from landlords |
$ | 12,923 | $ | 33,544 |
Fiscal year ended January 31, 2021 |
Fiscal year ended February 2, 2020 |
Change |
||||||||||
Total revenues |
$ | 436,512 | $ | 1,354,691 | $ | (918,179 | ) | |||||
Total store operating weeks |
3,922 | 6,769 | (2,847 | ) | ||||||||
Comparable store revenues |
$ | 358,395 | $ | 1,200,983 | $ | (842,588 | ) | |||||
Comparable store operating weeks |
3,157 | 5,928 | (2,771 | ) | ||||||||
Noncomparable store revenues |
$ | 81,272 | 162,467 | $ | (81,195 | ) | ||||||
Noncomparable store operating weeks |
765 | 841 | (76 | ) | ||||||||
Other revenues |
$ | (3,155 | ) | $ | (8,759 | ) | $ | 5,604 |
Fiscal Year Ended |
Fiscal Year Ended |
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February 2, 2020 |
February 3, 2019 |
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Food and beverage revenues |
$ | 563,576 | 41.6 | % | $ | 536,469 | 42.4 | % | ||||||||
Amusement and other revenues |
791,115 | 58.4 | 728,832 | 57.6 | ||||||||||||
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|
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Total revenues |
1,354,691 | 100.0 | 1,265,301 | 100.0 | ||||||||||||
Cost of food and beverage (as a percentage of food and beverage revenues) |
148,196 | 26.3 | 139,199 | 25.9 | ||||||||||||
Cost of amusement and other (as a percentage of amusement and other revenues) |
85,115 | 10.8 | 81,064 | 11.1 | ||||||||||||
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Total cost of products |
233,311 | 17.2 | 220,263 | 17.4 | ||||||||||||
Operating payroll and benefits |
322,970 | 23.8 | 296,924 | 23.5 | ||||||||||||
Other store operating expenses |
429,431 | 31.8 | 384,155 | 30.4 | ||||||||||||
General and administrative expenses |
69,469 | 5.1 | 61,521 | 4.9 | ||||||||||||
Depreciation and amortization expense |
132,460 | 9.8 | 118,275 | 9.3 | ||||||||||||
Pre-opening costs |
18,971 | 1.4 | 23,163 | 1.8 | ||||||||||||
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|
|
|
|
|
|
|||||||||
Total operating costs |
1,206,612 | 89.1 | 1,104,301 | 87.3 | ||||||||||||
|
|
|
|
|
|
|
|
|||||||||
Operating income |
148,079 | 10.9 | 161,000 | 12.7 | ||||||||||||
Interest expense, net |
20,937 | 1.5 | 13,113 | 1.0 | ||||||||||||
|
|
|
|
|
|
|
|
|||||||||
Income before provision for income taxes |
127,142 | 9.4 | 147,887 | 11.7 | ||||||||||||
Provision for income taxes |
26,879 | 2.0 | 30,666 | 2.4 | ||||||||||||
|
|
|
|
|
|
|
|
|||||||||
Net income |
$ | 100,263 | 7.4 | % | $ | 117,221 | 9.3 | % | ||||||||
|
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|
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|
|||||||||
Change in comparable store sales |
(2.6 | )% | (1.6 | )% | ||||||||||||
Company-owned stores open at end of period (1) |
136 | 121 | ||||||||||||||
Comparable stores open at end of period (1) |
99 | 86 |
(1) |
Our store in Duluth (Atlanta), Georgia permanently closed on March 3, 2019, as we did not exercise the renewal option, and has been excluded from fiscal 2019 store counts and comparable store sales. The number of new store openings during the last two fiscal years were as follows: |
Fiscal Year Ended |
Fiscal Year Ended |
|||||||
February 2, 2020 |
February 3, 2019 |
|||||||
First Quarter |
7 | 6 | ||||||
Second Quarter |
3 | 5 | ||||||
Third Quarter |
4 | 1 | ||||||
Fourth Quarter |
2 | 3 | ||||||
|
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|
|||||
16 | 15 |
Fiscal Year Ended |
Fiscal Year Ended |
|||||||||||||||
February 2, 2020 |
February 3, 2019 |
|||||||||||||||
Net income |
$ | 100,263 | 7.4 | % | $ | 117,221 | 9.3 | % | ||||||||
Interest expense, net |
20,937 | 13,113 | ||||||||||||||
Provision for income tax |
26,879 | 30,666 | ||||||||||||||
Depreciation and amortization expense |
132,460 | 118,275 | ||||||||||||||
|
|
|
|
|||||||||||||
EBITDA |
280,539 | 20.7 | % | 279,275 | 22.1 | % | ||||||||||
Loss on asset disposal |
1,813 | 1,121 | ||||||||||||||
Share-based compensation |
6,857 | 7,422 | ||||||||||||||
Pre-opening costs |
18,971 | 23,163 | ||||||||||||||
Other costs (1) |
42 | 136 | ||||||||||||||
|
|
|
|
|||||||||||||
Adjusted EBITDA |
$ | 308,222 | 22.8 | % | $ | 311,117 | 24.6 | % | ||||||||
|
|
|
|
(1) |
Primarily represents costs related to currency transaction (gains) or losses. |
Fiscal Year Ended |
Fiscal Year Ended |
|||||||||||||||
February 2, 2020 |
February 3, 2019 |
|||||||||||||||
Operating income |
$ | 148,079 | 10.9 | % | $ | 161,000 | 12.7 | % | ||||||||
General and administrative expenses |
69,469 | 61,521 | ||||||||||||||
Depreciation and amortization expense |
132,460 | 118,275 | ||||||||||||||
Pre-opening costs |
18,971 | 23,163 | ||||||||||||||
|
|
|
|
|||||||||||||
Store Operating Income Before Depreciation and Amortization |
$ | 368,979 | 27.2 | % | $ | 363,959 | 28.8 | % | ||||||||
|
|
|
|
Fiscal Year Ended |
Fiscal Year Ended |
|||||||
February 3, 2020 |
February 3, 2019 |
|||||||
New store and operating initiatives |
$ | 183,897 | $ | 162,763 | ||||
Games |
19,749 | 27,381 | ||||||
Maintenance capital |
27,351 | 20,821 | ||||||
|
|
|
|
|||||
Total capital additions |
$ | 230,997 | $ | 210,965 | ||||
|
|
|
|
|||||
Payments from landlords |
$ | 33,544 | $ | 52,099 |
Comparable stores |
$ | (28,408 | ) | |
Non-comparable stores |
117,592 | |||
Other |
206 | |||
|
|
|||
Total |
$ | 89,390 | ||
|
|
• | reduced expenses broadly; |
• | canceled or delayed all non-essential planned capital spending for the remainder of fiscal 2020 and halted or delayed all planned store openings, except stores that commenced construction prior to the COVID-19 pandemic; |
• | indefinitely suspended our share repurchase program and cash dividends and drew down substantially all the remaining credit available under our $500,000 revolving credit facility during our first quarter of fiscal 2020; |
• | sold shares of our common stock, generating gross proceeds of $185,600; |
• | negotiated two amendments with our lenders, resulting in an extension of the maturity date of our revolving credit facility to August 17, 2024 and relief from testing compliance with certain financial covenants until the last day of the fiscal quarter ending on May 1, 2022; |
• | issued $550,000 of senior secured notes, maturing November 1, 2025; |
• | negotiated with our landlords, vendors, and other business partners to temporarily reduce our lease and contract payments and obtain other concessions. During fiscal 2020, a total of 126 rent relief agreements related to our operating locations and corporate headquarters were initially executed, which generally provide for full deferral for three months beginning April 2020, with partial deferral continuing for periods of up to six months, at approximately 50% of those locations. As the pandemic continued to impact our business into the fourth quarter, the Company renewed negotiations with the majority of these landlords in order to provide additional rent relief, generally seeking to push out or extend the terms of deferral pay back periods and/or provide rent relief beyond the periods in the initial agreements. As of the end of fiscal 2020, the Company had executed 17 of these additional rent relief agreements; and |
• | submitted a proposal, approved by our shareholders, increasing the number of shares available for incentive awards, which enables management to maintain key talent while preserving the Company’s liquidity by minimizing cash outlays. |
• | In fiscal 2020, the Company spent approximately $64,000 ($51,000 net of payments from landlords) for new store construction and operating improvement initiatives, $10,000 for game refreshment and $9,000 for maintenance capital. |
• | In fiscal 2019, the Company spent approximately $187,000 ($153,000 net of payments from landlords) for new store construction and operating improvement initiatives, $19,000 for game refreshment and $22,000 for maintenance capital. |
• | In fiscal 2018, the Company spent approximately $164,500 ($112,500 net of payments from landlords) for new store construction and operating improvement initiatives, $29,000 for game refreshment, and $22,500 for maintenance capital. |
• | In fiscal 2020, prior to the debt refinancing, the Company drew down substantially all the available credit under our revolving credit facility, or approximately $100,000, and the Company received net proceeds of approximately $182,200 from the issuance of shares of our common stock in April and May 2020. In October 2020, the Company issued $550,000 of senior secured notes in a private offering and amended the existing credit facility. The proceeds from the offering, along with cash on hand, were used to pay debt issuance costs, the $255,000 balance of the term portion of the credit facility, and $463,000 of outstanding borrowings under the revolving portion of the credit facility. Subsequent to the refinancing, the Company had net borrowings of $34,000 under the revolver. |
• | In fiscal 2019, approximately $297,000 of share repurchases and approximately $16,000 of cash dividends paid, partially offset by $254,000 of net proceeds from borrowings of debt. |
• | In fiscal 2018, approximately $149,000 of share repurchases and approximately $11,500 of cash dividends paid, partially offset by $27,000 of net proceeds from borrowings. |
1 Year |
After 5 |
|||||||||||||||||||
Total |
or Less |
2-3 Years |
4-5 Years |
Years |
||||||||||||||||
Debt (1) |
$ | 610,000 | $ | — | $ | — | $ | 610,000 | $ | — | ||||||||||
Interest requirements (2) |
216,067 | 47,753 | 93,041 | 75,273 | — | |||||||||||||||
Operating leases (3) |
2,049,535 | 132,037 | 273,801 | 269,403 | 1,374,294 | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Total |
$ | 2,875,602 | $ | 179,790 | $ | 366,842 | $ | 954,676 | $ | 1,374,294 | ||||||||||
|
|
|
|
|
|
|
|
|
|
(1) |
Available commitments under the revolving credit facility were $430,314 as of January 31, 2021, subject to a $150,000 liquidity covenant. |
(2) |
The cash obligations for the variable interest requirements on the outstanding balance of the revolving credit facility and the unused commitment are based on an interest rate of 6.00% and 0.50%, respectively, through the end of the first quarter of fiscal year 2022, reduced to 4.00% and 0.40%, respectively, for the remainder of the term of the credit facility. The interest requirement on the senior secured notes is based on a fixed rate of 7.625%. |
(3) |
Our operating leases generally provide for one or more renewal options. These renewal options allow us to extend the term of the lease for a specified time at an established annual lease payment. Future obligations related to lease renewal options that have been exercised or were reasonably certain to be exercised as of the lease origination date, have been included in the table above. |
ITEM 7A. |
Quantitative and Qualitative Disclosures about Market Risk |
ITEM 8. |
Financial Statements and Supplementary Data |
ITEM 9. |
Changes in and Disagreements with Accountants on Accounting and Financial Disclosure |
ITEM 9A. |
Controls and Procedures |
ITEM 9B. |
Other Information |
ITEM 10. |
Directors, Executive Officers and Corporate Governance |
ITEM 11. |
Executive Compensation |
ITEM 12. |
Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters |
ITEM 13. |
Certain Relationships and Related Transactions, and Director Independence |
ITEM 14. |
Principal Accountant Fees and Services |
ITEM 15. |
Exhibits and Financial Statement Schedules |
(1) | Financial Statements |
(2) | Financial Statement Schedules |
* | Filed herein |
DAVE & BUSTER’S ENTERTAINMENT, INC., a Delaware Corporation | ||||||
Date: March 31, 2021 | By: | /s/ Scott J. Bowman | ||||
Scott J. Bowman | ||||||
Chief Financial Officer |
By: | /s/ Brian A. Jenkins |
Chief Executive Officer and Director | ||
Brian A. Jenkins | (Principal Executive Officer) | |||
By: | /s/ Scott J. Bowman |
Chief Financial Officer | ||
Scott J. Bowman | (Principal Financial and Accounting Officer) | |||
By: | /s/ Stephen M. King |
Chairman of the Board | ||
Stephen M. King | ||||
By: | /s/ James Chambers |
Director | ||
James Chambers | ||||
By: | /s/ Hamish A. Dodds |
Director | ||
Hamish A. Dodds | ||||
By: | /s/ Michael J. Griffith |
Director | ||
Michael J. Griffith | ||||
By: | /s/ Jonathan S. Halkyard |
Director | ||
Jonathan S. Halkyard | ||||
By: | /s/ John C. Hockin |
Director | ||
John C. Hockin |
By: | /s/ Patricia H. Mueller |
Director | ||
Patricia H. Mueller | ||||
By: | /s/ Kevin M. Sheehan |
Director | ||
Kevin M. Sheehan | ||||
By: | /s/ Jennifer Storms |
Director | ||
Jennifer Storms |
January 31, |
February 2, |
|||||||
|
|
2021 |
|
|
2020 |
| ||
ASSETS |
||||||||
Current assets: |
||||||||
Cash and cash equivalents |
$ | $ | ||||||
Inventories |
||||||||
Prepaid expenses |
||||||||
Income taxes receivable |
||||||||
Other current assets |
||||||||
|
|
|
|
|||||
Total current assets |
||||||||
Property and equipment (net of $ |
||||||||
Operating lease right of use assets, net |
||||||||
Deferred tax assets |
||||||||
Tradenames |
||||||||
Goodwill |
||||||||
Other assets and deferred charges |
||||||||
|
|
|
|
|||||
Total assets |
$ | $ | ||||||
|
|
|
|
|||||
LIABILITIES AND STOCKHOLDERS’ EQUITY |
||||||||
Current liabilities: |
||||||||
Current installments of long-term debt |
$ | — | $ | |||||
Accounts payable |
||||||||
Accrued liabilities |
||||||||
Income taxes payable |
||||||||
|
|
|
|
|||||
Total current liabilities |
||||||||
Deferred income taxes |
||||||||
Operating lease liabilities |
||||||||
Other liabilities |
||||||||
Long-term debt, net |
||||||||
Commitments and contingencies |
||||||||
Stockholders’ equity: |
||||||||
Common stock, par value $ |
||||||||
Preferred stock, |
— | — | ||||||
Paid-in capital |
||||||||
Treasury stock, |
( |
) | ( |
) | ||||
Accumulated other comprehensive loss |
( |
) | ( |
) | ||||
Retained earnings |
||||||||
|
|
|
|
|||||
Total stockholders’ equity |
||||||||
|
|
|
|
|||||
Total liabilities and stockholders’ equity |
$ | $ | ||||||
|
|
|
|
Fiscal Year Ended January 31, 2021 |
Fiscal Year Ended February 2, 2020 |
Fiscal Year Ended February 3, 2019 |
||||||||||
Food and beverage revenues |
$ | $ | $ | |||||||||
Amusement and other revenues |
||||||||||||
|
|
|
|
|
|
|||||||
Total revenues |
||||||||||||
Cost of food and beverage |
||||||||||||
Cost of amusement and other |
||||||||||||
|
|
|
|
|
|
|||||||
Total cost of products |
||||||||||||
Operating payroll and benefits |
||||||||||||
Other store operating expenses |
||||||||||||
General and administrative expenses |
||||||||||||
Depreciation and amortization expense |
||||||||||||
Pre-opening costs |
||||||||||||
|
|
|
|
|
|
|||||||
Total operating costs |
||||||||||||
|
|
|
|
|
|
|||||||
Operating income (loss) |
( |
) | ||||||||||
Interest expense, net |
||||||||||||
Loss on debt refinance |
— | — | ||||||||||
|
|
|
|
|
|
|||||||
Income (loss) before provision (benefit) for income taxes |
( |
) | ||||||||||
Provision (benefit) for income taxes |
( |
) | ||||||||||
|
|
|
|
|
|
|||||||
Net income (loss) |
( |
) | ||||||||||
|
|
|
|
|
|
|||||||
Unrealized foreign currency translation gain (loss) |
( |
) | ( |
) | ||||||||
Unrealized loss on derivatives, net of tax |
( |
) | ( |
) | — | |||||||
|
|
|
|
|
|
|||||||
Total other comprehensive loss |
( |
) | ( |
) | ( |
) | ||||||
|
|
|
|
|
|
|||||||
Total comprehensive income (loss) |
$ | ( |
) | $ | $ | |||||||
|
|
|
|
|
|
|||||||
Net income (loss) per share: |
||||||||||||
Basic |
$ | ( |
) | $ | $ | |||||||
Diluted |
$ | ( |
) | $ | $ | |||||||
Weighted average shares used in per share calculations: |
||||||||||||
Basic |
||||||||||||
Diluted |
Common Stock |
Paid-In Capital |
Treasury Stock At Cost |
Accumulated Other Comprehensive Income (loss) |
Retained Earnings |
Total |
|||||||||||||||||||||||||||
Shares |
Amt. |
Shares |
Amt. |
|||||||||||||||||||||||||||||
Balance February 4, 2018 |
$ | $ | ( |
) | ( |
) | ||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||
Net income |
— | — | — | — | — | — | ||||||||||||||||||||||||||
Unrealized foreign currency translation loss |
— | — | — | — | — | ( |
) | — | ( |
) | ||||||||||||||||||||||
Dividends declared ($ |
— | — | — | — | — | — | ( |
) | ( |
) | ||||||||||||||||||||||
Share-based compensation |
— | — | — | — | — | — | ||||||||||||||||||||||||||
Issuance of common stock |
— | — | — | — | ||||||||||||||||||||||||||||
Repurchase of common stock |
— | — | — | ( |
) | — | — | ( |
) | |||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||
Balance February 3, 2019 |
( |
) | ( |
) | ||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||
Cumulative effect of a change in accounting principle, net of tax |
— | — | — | — | — | — | ( |
) | ( |
) | ||||||||||||||||||||||
Net income |
— | — | — | — | — | — | ||||||||||||||||||||||||||
Unrealized foreign currency translation loss |
— | — | — | — | — | ( |
) | — | ( |
) | ||||||||||||||||||||||
Unrealized loss on derivatives, net of tax |
— | — | — | — | — | ( |
) | — | ( |
) | ||||||||||||||||||||||
Dividends declared ($ |
— | — | — | — | — | — | ( |
) | ( |
) | ||||||||||||||||||||||
Share-based compensation |
— | — | — | — | — | — | ||||||||||||||||||||||||||
Issuance of common stock |
— | — | — | — | ||||||||||||||||||||||||||||
Repurchase of common stock |
— | — | — | ( |
) | — | — | ( |
) | |||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||
Balance February 2, 2020 |
( |
) | ( |
) | ||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||
Net loss |
— | — | — | — | — | — | ( |
) | ( |
) | ||||||||||||||||||||||
Unrealized foreign currency translation gain |
— | — | — | — | — | — | ||||||||||||||||||||||||||
Unrealized loss on derivatives, net of tax |
— | — | — | — | — | ( |
) | — | ( |
) | ||||||||||||||||||||||
Share-based compensation |
— | — | — | — | — | — | ||||||||||||||||||||||||||
Issuance of common stock |
— | — | — | — | ||||||||||||||||||||||||||||
Repurchase of common stock |
— | — | — | ( |
) | — | — | ( |
) | |||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||
Balance January 31, 2021 |
$ | $ | $ | ( |
) | $ | ( |
) | $ | $ | ||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Fiscal Year Ended January 31, 2021 |
Fiscal Year Ended February 2, 2020 |
Fiscal Year Ended February 3, 2019 |
||||||||||
Cash flows from operating activities: |
||||||||||||
Net income (loss) |
$ | ( |
) | $ | $ | |||||||
Adjustments to reconcile net income (loss) to net cash provided by operating activities: |
||||||||||||
Depreciation and amortization expense |
||||||||||||
Non-cash interest expense |
— | — | ||||||||||
Impairment of long-lived assets |
— | — | ||||||||||
Deferred taxes |
( |
) | ||||||||||
Loss on debt refinance |
— | — | ||||||||||
Loss on disposal of fixed assets |
||||||||||||
Share-based compensation |
||||||||||||
Other, net |
||||||||||||
Changes in assets and liabilities: |
||||||||||||
Inventories |
( |
) | ||||||||||
Prepaid expenses |
( |
) | ( |
) | ||||||||
Income tax receivable |
( |
) | ( |
) | ||||||||
Other current assets |
||||||||||||
Other assets and deferred charges |
( |
) | ( |
) | ||||||||
Accounts payable |
( |
) | ||||||||||
Accrued liabilities |
||||||||||||
Income taxes payable |
( |
) | ( |
) | ||||||||
Deferred occupancy costs |
— | — | ||||||||||
Other liabilities |
||||||||||||
|
|
|
|
|
|
|||||||
Net cash provided by (used in) operating activities |
( |
) | ||||||||||
|
|
|
|
|
|
|||||||
Cash flows from investing activities: |
||||||||||||
Capital expenditures |
( |
) | ( |
) | ( |
) | ||||||
Proceeds from sale-leaseback transactions |
— |
— | ||||||||||
Proceeds from insurance |
— | |||||||||||
Proceeds from sales of property and equipment |
||||||||||||
|
|
|
|
|
|
|||||||
Net cash used in investing activities |
( |
) | ( |
) | ( |
) | ||||||
|
|
|
|
|
|
|||||||
Cash flows from financing activities: |
||||||||||||
Proceeds from debt |
||||||||||||
Payments of debt |
( |
) | ( |
) | ( |
) | ||||||
Debt issuance costs |
( |
) | — | — | ||||||||
Net proceeds from the issuance of common stock |
— | — | ||||||||||
Repurchase of common stock under share repurchase program |
— | ( |
) | ( |
) | |||||||
Repurchases of common stock to satisfy employee withholding tax obligations |
( |
) | ( |
) | ( |
) | ||||||
Dividends paid |
( |
) | ( |
) | ( |
) | ||||||
Proceeds from the exercise of stock options |
||||||||||||
|
|
|
|
|
|
|||||||
Net cash provided by (used in) financing activities |
( |
) | ( |
) | ||||||||
|
|
|
|
|
|
|||||||
Increase (decrease) in cash and cash equivalents |
( |
) | ||||||||||
Beginning cash and cash equivalents |
||||||||||||
|
|
|
|
|
|
|||||||
Ending cash and cash equivalents |
$ | $ | $ | |||||||||
|
|
|
|
|
|
|||||||
Supplemental disclosures of cash flow information: |
||||||||||||
Increase (decrease) for capital expenditures in accounts payable |
$ | ( |
) | $ | $ | ( |
) | |||||
Cash paid (received) for income taxes, net |
$ | ( |
) | $ | $ | |||||||
Cash paid for interest, net |
$ | $ | $ | |||||||||
Dividends declared, not paid |
$ | — |
$ | $ | — |
Estimated Depreciable Lives (In Years) | ||
Building and building improvements |
||
Leasehold improvements |
||
Furniture, fixtures and equipment |
||
Games |
Fair Value |
||||||||||||
Balance Sheet Location |
January 31, 2021 |
February 2, 2020 |
||||||||||
Derivatives designated as hedging instruments: |
||||||||||||
Interest rate swaps |
Accrued liabilities | $ | ( |
) | $ | ( |
) | |||||
Interest rate swaps |
Other liabilities | ( |
) | ( |
) | |||||||
Total derivatives (1) |
$ | ( |
) | $ | ( |
) | ||||||
(1) |
The balance at January 31, 2021 relates to our swap agreements after hedge accounting was discontinued. |
January 31, 2021 |
February 2, 2020 |
|||||||
Amount of loss recorded in accumulated other comprehensive income |
$ | $ | ||||||
Amount of loss reclassified into income (1) |
$ | ( |
) | $ | ( |
) | ||
Income tax expense (benefit) in accumulated other comprehensive income |
$ | ( |
) | $ | ( |
) |
(1) |
Amounts reclassified into income are included in “Interest expense, net” in the Consolidated Statements of Comprehensive Income (Loss). |
January 31, 2021 |
February 2, 2020 |
February 3, 2019 |
||||||||||
Basic weighted average shares outstanding |
||||||||||||
Weighted average dilutive impact of awards (1) |
— |
|||||||||||
Diluted weighted average shares outstanding |
(1) |
Amounts exclude all potential common and common equivalent shares for periods when there is a net loss. |
January 31, 2021 |
February 2, 2020 |
|||||||
Operating store—food and beverage |
$ | $ | ||||||
Operating store—amusement |
||||||||
Corporate—amusement, supplies and other |
||||||||
$ | $ | |||||||
January 31, 2021 |
February 2, 2020 |
|||||||
Land |
$ | $ | ||||||
Buildings and building improvements |
||||||||
Leasehold improvements |
||||||||
Furniture, fixtures and equipment |
||||||||
Games |
||||||||
Construction in progress |
||||||||
Total cost |
||||||||
Accumulated depreciation |
( |
) | ( |
) | ||||
Property and equipment, net |
$ | $ | ||||||
January 31, 2021 |
February 2, 2020 |
|||||||
Deferred amusement revenue |
$ | $ | ||||||
(1) |
||||||||
Current portion of deferred occupancy costs |
||||||||
Compensation and benefits |
||||||||
Accrued interest |
||||||||
Deferred gift card revenue |
||||||||
Current portion of derivatives |
||||||||
Property taxes |
||||||||
Current portion of long-term insurance |
||||||||
Utilities |
||||||||
Sales and use taxes |
||||||||
Customer deposits |
||||||||
Dividend payable |
||||||||
Other (Note 10) |
||||||||
Total accrued liabilities |
$ | $ | ||||||
(1) |
The balance of leasehold incentive receivables of $ |
January 31, 2021 |
February 2, 2020 |
|||||||
Credit Facility—term |
$ | $ | ||||||
Credit Facility—revolver |
||||||||
Senior secured notes |
||||||||
Total debt outstanding |
||||||||
Less current installments |
— |
( |
) | |||||
Less debt issuance costs |
( |
) | ( |
) | ||||
Long-term debt, net |
$ | $ | ||||||
2024 |
$ | |||
2025 |
||||
Total future payments |
$ | |||
January 31, 2021 |
February 2, 2020 |
February 3, 2019 |
||||||||||
Interest expense on debt |
$ | $ | $ | |||||||||
Interest associated with swap agreements |
||||||||||||
Amortization of issuance cost |
||||||||||||
Interest income |
( |
) | ( |
) | ( |
) | ||||||
Capitalized interest |
( |
) | ( |
) | ( |
) | ||||||
Change in fair value of interest rate cap |
||||||||||||
Total interest expense, net |
$ | $ | $ | |||||||||
January 31, 2021 |
February 2, 2020 |
February 3, 2019 |
||||||||||
Current provision: |
||||||||||||
Federal |
$ | ( |
) |
$ | $ | |||||||
State and local |
( |
) |
||||||||||
Foreign |
( |
) |
||||||||||
Total current provision |
( |
) |
||||||||||
Deferred provision (benefit): |
||||||||||||
Federal |
( |
) |
||||||||||
State and local |
( |
) | ( |
) | ||||||||
Foreign |
|
( |
) | |||||||||
Total deferred provision (benefit) |
( |
) |
||||||||||
Provision for income taxes |
$ | ( |
) |
$ | $ | |||||||
January 31, 2021 |
February 2, 2020 |
February 3, 2019 |
||||||||||
Federal income tax rate |
% | % | % | |||||||||
State and local income taxes, net of federal benefit |
|
% | % | % | ||||||||
Permanent differences |
( |
) % |
% | % | ||||||||
Tax credits |
|
% | ( |
)% | ( |
)% | ||||||
Share-based compensation |
( |
) % |
( |
)% | ( |
)% | ||||||
Impact of net operating loss carryback |
|
% | — | % | — | % | ||||||
Other |
( |
) % |
% | % | ||||||||
Effective tax rate |
% | % | % | |||||||||
January 31, 2021 |
February 2, 2020 |
|||||||
Deferred revenue |
$ |
$ |
||||||
Operating lease liability |
||||||||
Accrued liabilities |
||||||||
Workers compensation and general liability insurance |
||||||||
Share-based compensation |
||||||||
Hedging transactions |
||||||||
Net operating loss carryovers |
||||||||
Tax credit carryovers |
||||||||
Indirect benefit of unrecognized tax benefits |
||||||||
Other |
||||||||
Total deferred tax assets |
||||||||
Trademark/tradename |
( |
) |
( |
) | ||||
Property and equipment |
( |
) |
( |
) | ||||
Operating lease right of use asset |
( |
) |
( |
) | ||||
Other |
( |
) |
( |
) | ||||
Total deferred tax liabilitie s |
( |
) |
( |
) | ||||
Net deferred tax asset (liability) before valuation allowance |
( |
) | ||||||
Valuation allowanc e |
( |
) |
( |
) | ||||
Net deferred tax liability |
$ | ( |
) |
$ | ( |
) | ||
January 31, 2021 |
February 2, 2020 |
February 3, 2019 |
||||||||||
Balance at beginning of year |
$ | $ | $ | |||||||||
Additions for tax positions of prior years |
||||||||||||
Reductions for tax positions of prior years |
— |
( |
) | ( |
) | |||||||
Additions for tax positions of current year |
||||||||||||
Settlements with taxing authorities |
— |
( |
) | — | ||||||||
Lapse of statute of limitations |
( |
) |
( |
) | ( |
) | ||||||
Balance at end of year |
$ | $ | $ | |||||||||
January 31, 2021 |
February 2, 2020 |
|||||||
Operating lease cost |
$ | $ | ||||||
Variable lease cost |
||||||||
Short-term lease cost (1) |
||||||||
Total lease cost |
$ | $ | ||||||
(1) |
We have elected the short-term lease recognition exemption for all applicable classes of underlying assets. Leases with an initial term of 12 months or less, that do not include a purchase option that we are reasonably certain to exercise, are not recorded on the Consolidated Balance Sheet. |
January 31, 2021 |
February 2, 2020 |
|||||||
Cash paid for operating lease liabilities |
$ | |
$ | |||||
ROU assets obtained in exchange for new operating lease liabilities (1) |
$ | $ | ||||||
Weighted-average remaining lease term - operating leases (in years) |
||||||||
Weighted-average discount rate - operating leases |
% |
% |
(1) |
Excludes the transition adjustment at adoption of Topic 842 in fiscal 2019. |
2022 |
$ | |
||
2023 |
||||
2024 |
||||
2025 |
||||
2026 |
||||
Thereafter |
||||
|
|
|||
Total future operating lease liability |
$ | |||
Less: interest |
( |
) | ||
|
|
|||
Present value of operating lease liabilities |
$ | |||
|
|
Fiscal 2019 |
Fiscal 2018 |
|||||||
Volatility |
% | % | ||||||
Risk free interest rate |
% | % | ||||||
Expected dividend yield |
% | % | ||||||
Expected term – in years |
||||||||
Weighted average grant-date fair value |
$ | $ |
2014 Stock Incentive Plan |
2010 Stock Incentive Plan |
|||||||||||||||
Number of Options |
Weighted Average Exercise Price |
Number of Options |
Weighted Average Exercise Price |
|||||||||||||
Outstanding at February 2, 2020 |
$ | $ | ||||||||||||||
Granted |
— | — | — | — | ||||||||||||
Exercised |
— | — | ( |
) | ||||||||||||
Forfeited |
( |
) | — | — | ||||||||||||
|
|
|
|
|
|
|
|
|||||||||
Outstanding at January 31, 2021 |
||||||||||||||||
|
|
|
|
|
|
|
|
|||||||||
Exercisable at January 31, 2021 |
$ | $ | ||||||||||||||
|
|
|
|
|
|
|
|
Shares |
Weighted Avg Grant Date Fair Value |
|||||||
Outstanding at February 2, 2020 |
$ | |||||||
Granted |
||||||||
Change in units based on performance |
||||||||
Vested |
( |
) | ||||||
Forfeited |
( |
) | ||||||
|
|
|
|
|||||
Outstanding at January 31, 202 1 |
$ | |||||||
|
|
|
|
Fiscal 2020 Quarters Ended |
||||||||||||||||
5/3/2020 |
8/2/2020 |
11/1/2020 |
1/31/2021 |
|||||||||||||
Total revenues |
$ | $ | $ | $ | ||||||||||||
Total cost of products |
||||||||||||||||
Operating loss |
( |
) | ( |
) | ( |
) | ( |
) | ||||||||
Net loss |
( |
) | ( |
) | ( |
) | ( |
) | ||||||||
Net loss per share of common stock: |
||||||||||||||||
Basic |
$ | ( |
) | $ | ( |
) | $ | ( |
) | $ | ( |
) | ||||
Diluted |
$ | ( |
) | $ | ( |
) | $ | ( |
) | $ | ( |
) | ||||
Weighted average number of shares outstanding: |
||||||||||||||||
Basic |
||||||||||||||||
Diluted |
||||||||||||||||
Company-owned stores at end of period |
Fiscal 2019 Quarters Ended |
||||||||||||||||
5/5/2019 |
8/4/2019 |
11/3/2019 |
2/2/2020 |
|||||||||||||
Total revenues |
$ | $ | $ | $ | ||||||||||||
Total cost of products |
||||||||||||||||
Operating income |
||||||||||||||||
Net income |
||||||||||||||||
Net income per share of common stock: |
||||||||||||||||
Basic |
$ | $ | $ | $ | ||||||||||||
Diluted |
$ | $ | $ | $ | ||||||||||||
Weighted average number of shares outstanding: |
||||||||||||||||
Basic |
||||||||||||||||
Diluted |
||||||||||||||||
Company-owned stores at end of period |