-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: webmaster@www.sec.gov Originator-Key-Asymmetric: MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB MIC-Info: RSA-MD5,RSA, HxxG49m7dJQUBafuK8aFT2tguw5eri+21BHXxv/pFGWRaMR2BJPCHHwJEveTuzaK CkjIFd//gH3JeRy4ngNTrw== 0000950134-03-008858.txt : 20030604 0000950134-03-008858.hdr.sgml : 20030604 20030603215009 ACCESSION NUMBER: 0000950134-03-008858 CONFORMED SUBMISSION TYPE: 8-K PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 20030603 ITEM INFORMATION: Financial statements and exhibits ITEM INFORMATION: Regulation FD Disclosure FILED AS OF DATE: 20030604 FILER: COMPANY DATA: COMPANY CONFORMED NAME: DAVE & BUSTERS INC CENTRAL INDEX KEY: 0000943823 STANDARD INDUSTRIAL CLASSIFICATION: RETAIL-EATING PLACES [5812] IRS NUMBER: 431532756 STATE OF INCORPORATION: MO FISCAL YEAR END: 0131 FILING VALUES: FORM TYPE: 8-K SEC ACT: 1934 Act SEC FILE NUMBER: 001-15007 FILM NUMBER: 03731203 BUSINESS ADDRESS: STREET 1: 2481 MANANA DRIVE CITY: DALLAS STATE: TX ZIP: 75220 BUSINESS PHONE: 2143579588 MAIL ADDRESS: STREET 1: 2481 MANANA DR CITY: DALLAS STATE: TX ZIP: 75220 8-K 1 d06536e8vk.txt FORM 8-K SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM 8-K CURRENT REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 DATE OF REPORT (DATE OF EARLIEST EVENT REPORTED): June 3, 2003 DAVE & BUSTER'S, INC. (Exact name of registrant as specified in its charter) MISSOURI 0000943823 43-1532756 (State of (Commission File (IRS Employer incorporation) Number) Identification Number) 2481 MANANA DRIVE DALLAS TX 75220 (Address of principal executive offices) REGISTRANT'S TELEPHONE NUMBER, INCLUDING AREA CODE: (214) 357-9588 ITEM 7. FINANCIAL STATEMENTS, PRO FORMA FINANCIAL INFORMATION AND EXHIBITS. (c) Exhibits. The following are filed as Exhibits to this Report. 99.1 Dave & Buster's, Inc. Press Release dated June 3, 2003 ITEM 9. REGULATION FD DISCLOSURE. On June 3, 2003, the Company issued a news release regarding the results of the first quarter ended May 4, 2003. A copy of the news release is furnished herewith as Exhibit 99.1. Limitation on Incorporation by Reference: In accordance with general instruction B.2 of Form 8-K, the information in this report is furnished under Item 9 and shall not be deemed to be "filed" for the purposes of Section 18 of the Securities Exchange Act of 1934 or otherwise subject to the liability of that section. Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized. DAVE & BUSTER'S, INC. Date: June 3, 2003 By: /s/ W. C. Hammett, Jr. --------------------------------------- W.C. Hammett, Jr., Chief Financial Officer 2 INDEX TO EXHIBITS
EXHIBIT NUMBER DESCRIPTION - ------- ----------- 99.1 Dave & Buster's, Inc. Press Release dated June 3, 2003
EX-99.1 3 d06536exv99w1.txt PRESS RELEASE EXHIBIT 99.1 NEWS RELEASE For Immediate Release For further information contact: Investor Relations - 214-904-2288 DAVE & BUSTER'S REPORTS FIRST QUARTER 2003 EARNINGS DALLAS (JUNE 3, 2003) DALLAS - Dave & Buster's Inc. (NYSE:DAB), a leading operator of upscale restaurant/entertainment complexes, announced earnings for its first quarter ended May 4, 2003. Net income for the quarter was $3.0 million, or $.23 per diluted share, compared to a net loss in the same period last year of $(4.2) million, or $(.31) per diluted share, which included a one-time charge of $7.1 million representing the cumulative effect of a change in accounting for goodwill. Prior to the change in accounting for goodwill, net income in the prior year's comparable quarter was $2.9 million, or $.22 per diluted share. Operating income was $6.7 million compared to $6.6 million in the prior year's comparable quarter. The Company achieved an increase in net income (prior to the change in accounting for goodwill) even though total revenues declined for the quarter as compared to the prior year. These results indicate that Dave & Buster's strategic initiatives to reduce costs are yielding results. Total revenues decreased 5.8 percent to $91.6 million from $97.2 million in the prior year's comparable quarter. The softness was led by the amusements portion of the business with a decline of just over 9 percent. Food and beverage revenue declined slightly more than 2 percent. Revenues for comparable stores decreased 7.5 percent during the quarter. There are currently 28 stores in the comparable store base as compared to 26 stores during the 2002 fiscal year. "We are aggressively moving to counter the softness in our revenues that we experienced during the first quarter as a result of the continuing economic environment, and the impact of the war with Iraq. Due to the extensive television coverage, or what has been called the 'CNN effect', we believe this impacted our revenues beginning several weeks before the actual start of the war and continued for several weeks after the major fighting ended," stated Buster Corley, CEO of Dave & Buster's. "Our strategic cost reduction plan is comprehensive and compelling. The progress we have made with this program to date has helped us improve our margins and positions us for further potential savings when the economy improves. As we discussed last quarter, we have identified between $10 million and $11 million dollars of savings. We are continuing the process of identifying and implementing additional measures, including an additional yearly savings of nearly $3.4 million associated with our redemption games which will be implemented by fiscal 2004." "We are focused on rebuilding revenues and we believe that upgraded amusement programs represent our biggest area of opportunity. We are making a major commitment to our amusement business with a new game rollout of over $9 million, which is larger than we have implemented over the last two years combined. More than one-third of this rollout was committed during our first quarter. In addition, we announced last week that Maria Miller has joined our management team as Senior Vice President - Marketing. Our marketing programs will benefit from her focus and expertise. We expect these programs to be a further benefit to our revenues," said Dave Corriveau, President of the Company. "We are executing strategies to carefully manage our resources and cut costs, while prudently reinvesting in our business and continuing to reduce our debt," stated W.C. Hammett, Dave & Buster's CFO. "We are starting to experience the benefits of these strategies on our bottom line. During the quarter, we further reduced our long-term debt by $4.1 million." Mr. Hammett continued, "The current economic conditions continue to make revenue projects difficult, so we still do not feel comfortable providing quarterly guidance. However, the strength of the success of our initiatives in improving our bottom line, even in this challenging environment, permits us to reconfirm our previously announced fiscal year 2003 earnings per share guidance of $0.77 to $0.85." The Company will hold a conference call on Tuesday, June 3 at 4:15 p.m. CDT. Interested parties may listen to the call over the Internet through Dave & Buster's website, www.daveandbusters.com. To listen to the live call, please access the website at least fifteen minutes before the call to register, download, and install any necessary audio software. For those who cannot listen to the live broadcast a replay will be available shortly after the call on the website. The archived call will be available for two weeks. Celebrating over 20 years of operations, Dave & Buster's was founded in 1982 and is one of the country's leading upscale, restaurant/entertainment concepts with 32 locations throughout the United States. Additionally, Dave & Buster's has international agreements for the Pacific Rim, Canada, the Middle East and Mexico. FORWARD-LOOKING STATEMENTS Certain information contained in this press release includes forward-looking statements. Forward-looking statements include statements regarding our expectations, beliefs, intentions, plans, projections, objectives, goals, strategies, future events or performance and underlying assumptions and other statements which are other than statements of historical facts. These statements may be identified, without limitations, by the use of forward looking terminology such as "may," "will," "anticipates," "expects," "projects," "believes," "intends," "should," or comparable terms or the negative thereof. All forward-looking statements included in this press release are based on information available to us on the date hereof. Such statements speak only as of the date hereof. These statements involve risks and uncertainties that could cause actual results to differ materially from those described in the statements. These risks and uncertainties include, but are not limited to, the following: our ability to open new high-volume restaurant/entertainment complexes; our ability to raise and access sufficient capital in the future; changes in consumer preferences, general economic conditions or consumer discretionary spending; the outbreak or continuation of war or other hostilities involving the United States; potential fluctuation in our quarterly operating result due to seasonality and other factors; the continued service of key management personnel; our ability to attract, motivate and retain qualified personnel; the impact of federal, state or local government regulations relating to our personnel or the sale of food or alcoholic beverages; the impact of litigation; the effect of competition in our industry; additional costs associated with compliance with the Sarbanes-Oxley Act and related regulations and requirements; and other risk factors described from time to time in our reports filed with the SEC. # # # DAVE & BUSTER'S INC. Consolidated Balance Sheet (in thousands)
May 4, 2003 February 2, 2003 ------------ ---------------- (unaudited) ASSETS Current Assets Cash and cash equivalents $ 2,934 $ 2,530 Other current assets 32,157 30,819 ------------ ------------ Total current assets 35,091 33,349 Property and equipment, net 249,324 249,451 Other assets 8,170 8,412 ------------ ------------ $ 292,585 $ 291,212 ============ ============ LIABILITIES AND STOCKHOLDERS' EQUITY Total current liabilities $ 39,377 $ 37,580 Other long-term liabilities 24,987 24,536 Long-term Debt 55,369 59,494 Stockholders' Equity Common stock 132 132 Paid in capital 116,813 116,678 Restricted Stock 674 608 Retained earnings 57,079 54,030 ------------ ------------ 174,698 171,448 Less: Treasury stock (1,846) (1,846) ------------ ------------ Total stockholders' equity 172,852 169,602 ------------ ------------ $ 292,585 $ 291,212 ============ ============
DAVE & BUSTER'S INC. Consolidated Statements of Income (dollars in thousands, except per share amounts) (unaudited)
13 Weeks Ended 13 Weeks Ended May 4, 2003 May 5, 2002 ----------------------------- ------------------------------ Food and beverage revenues $ 47,664 52.0% $ 48,743 50.1% Amusements and other revenues 43,923 48.0% 48,499 49.9% ------------ ------------ Total revenues 91,587 100.0% 97,242 100.0% Cost of revenues 16,671 18.2% 18,116 18.6% Operating payroll and benefits 26,799 29.3% 30,765 31.6% Other store operating expenses 28,192 30.8% 27,943 28.7% General and administrative expenses 5,939 6.5% 6,111 6.3% Depreciation and amortization expense 7,307 8.0% 7,555 7.8% Preopening costs -- 0.0% 152 0.2% ------------ ------------ Total other expenses 84,908 92.7% 90,642 93.2% Operating income 6,679 7.3% 6,600 6.8% Interest expense, net 2,060 2.2% 2,008 2.1% ------------ ------------ Income before provision for income taxes 4,619 5.0% 4,592 4.7% and cumulative effect of a change in an accounting principle Provision for income taxes 1,570 1.7% 1,676 1.7% ------------ ------------ Income before cumulative effect of a change in an accounting principle $ 3,049 3.3% $ 2,916 3.0% Cumulative effect of a change in an accounting principle -- 0.0% 7,096 7.3% ------------ ------------ Net income $ 3,049 3.3% $ (4,180) -4.3% ============ ============ Net income per share - basic Before cumulative effect of a change in an accounting principle $ 0.23 $ 0.22 Cumulative effect of a change in an accounting principle -- (0.55) ------------ ------------ $ 0.23 $ (0.33) Net income per share - diluted Before cumulative effect of a change in an accounting principle $ 0.23 $ 0.22 Cumulative effect of a change in an accounting principle -- (0.53) ------------ ------------ $ 0.23 $ (0.31) ============ ============ Basic weighted average shares outstanding 13,090 12,971 Diluted weighted average shares outstanding 13,283 13,307 Other information: Company operated stores open 32 32 EBITDA (Earnings before interest, taxes, depreciation and amortization): Total operating income $ 6,679 $ 6,600 Add back depreciation and amortization 7,307 7,555 ------------ ------------ EBITDA $ 13,986 $ 14,155
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